Financial Data and Key Metrics Changes - Organic sales grew by 5% in Q3 2025, with adjusted EBITDA reaching a record $147 million, exceeding initial guidance of $140 million to $145 million [20][30] - Adjusted EBITDA growth would have been 10% when excluding the graphics business divestiture [20] - Adjusted EBITDA margin improved by approximately 20 basis points year over year in constant currency terms, with a margin of 28% when excluding the impact of pass-through metal sales [24][29] Business Line Data and Key Metrics Changes - The electronics segment achieved 7% organic growth, driven by strong performance in semi and assembly, and exceptional volume growth in circuitry solutions [20][23] - Circuitry solutions sales grew 13% organically, supported by demand for data center applications and mobile phone activity [25] - Industrial and specialty organic net sales were flat year over year, but underlying chemistry volumes for the industrial solutions vertical were up mid-single digits [26] Market Data and Key Metrics Changes - The electronics business is projected to exceed $2 billion in revenue following the acquisition of Micromax, which is expected to contribute approximately $40 million of adjusted EBITDA on a full-year basis [17][18] - The offshore business continues to grow, driven by stable energy prices and drilling activity, although a slowdown in drilling activity is anticipated into 2026 [72] Company Strategy and Development Direction - The acquisition of Micromax is seen as a strategic move to enhance the electronics portfolio and is expected to be more than 5% accretive to adjusted EPS [18][19] - The company is focused on disciplined investment in markets it understands and growth businesses that are better under its ownership [18] - Future growth levers include new product introductions in high-value categories and substantial remaining balance sheet capacity for further investments [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, expecting full-year 2025 adjusted EBITDA to be between $545 million and $550 million, indicating a positive outlook despite market volatility [30] - The company anticipates continued robust demand in leading-edge electronics driven by high-performance computing and data centers [32] - Management noted that while EV volumes are expected to decline, there are substantial customer wins and growth opportunities in power electronics [74] Other Important Information - The company generated $84 million of adjusted free cash flow in Q3 2025, with a net leverage ratio of 1.9 times at the end of the quarter [27][28] - The Micromax transaction is expected to be funded with a combination of cash on hand and modest incremental debt, maintaining financial flexibility for future opportunities [28] Q&A Session Summary Question: Thoughts on Micromax's performance under Element Solutions - Management is excited about Micromax's integration, expecting it to outperform the market due to enhanced connectivity in the supply chain and modest cost synergies [37][38] Question: Update on Kouprion commercialization activities - The mid-scale site for Kouprion is on track to be operational by year-end, with meaningful sales and profits expected next year [40][41] Question: Growth stability of Micromax - Micromax's growth has been stable, with a strong product portfolio that is sticky and specialized for demanding applications [46] Question: Capital flexibility and leverage considerations - The company maintains a long-term target ceiling for leverage at 3.5 times, with plenty of capacity for incremental capital deployment [47] Question: Sustainability of offshore business strength - The offshore business is expected to sustain growth, driven by stable energy prices and ongoing drilling activity [72] Question: Margin performance in industrial solutions - There is potential for further margin expansion in the industrial business as volume growth recovers [68]

Group 1 - The ESG briefing by AGC is being led by Kazumi Tamaki, who is the Executive Officer and GM of Corporate Communications & Investor Relations [1] - Presenters include Hideyuki Kurata, Representative Director, Executive Vice President, CTO, and Yuki Ihara, General Manager of Sustainability Division, Corporate Planning and General Division [1] - The presentation will cover the value creation model and management capital, followed by a Q&A session, scheduled to conclude at 5:00 p.m. [1]

Financial Performance - Kroger's identical sales without fuel increased by 34% in Q2 2025[5] - E-commerce sales grew by 16% compared to last year[5,6] - GAAP operating profit was $863 million[5] - Adjusted FIFO operating profit reached $1091 million[5] - GAAP EPS was $091[5] - Adjusted EPS grew by 12%[5] Guidance - The company updated its FY25 identical sales without fuel guidance to 27%-34%[10] - Operating profit guidance is $48 billion - $49 billion[10] - EPS guidance is $470 - $480[10] - Free cash flow guidance remains at $28 billion - $30 billion[10]

Financial Performance - GAAP Operating Profit was $1,322 million[5], while Adjusted FIFO Operating Profit reached $1,518 million[5] - GAAP EPS stood at $1.29[5], with Adjusted EPS showing a 4% growth[5] - Digital sales increased by 15% year-over-year, driven by strong delivery demand[6] Sales and Profitability - Identical Sales (excluding fuel) grew by 3.2%[5] - The company's Our Brands business accounts for approximately $37 billion in sales[14], and the eCommerce business generates around $14 billion[14] - Gross margin increased to 23% compared to 22% in the previous year[44] Guidance and Outlook - The company anticipates Identical Sales growth (excluding fuel) of 2.25% to 3.25% for the full year 2025[9] - The company projects Operating Profit to be in the range of $4.7 billion to $4.9 billion for fiscal year 2025[9] - Free Cash Flow is expected to be between $2.8 billion and $3.0 billion for the year[9]

Financial Data and Key Metrics Changes - Kroger achieved identical sales without fuel growth of 1.5% for the full year 2024, with digital sales growing 10% compared to last year [25][28] - Adjusted FIFO operating profit for 2024 was $4,700,000,000, with adjusted EPS at $4.47 per diluted share, reflecting a 2% decline when excluding the fifty-third week [28][29] - The FIFO gross margin rate excluding rent, depreciation, and amortization increased by 32 basis points for the full year, primarily due to the sale of Kroger Specialty Pharmacy and lower shrink [26][27] Business Line Data and Key Metrics Changes - Health and wellness was a strong driver of sales in 2024, led by growth in GLP-1s [26] - Alternative profit businesses generated $1,350,000,000 in operating profit, driven by a 17% increase in media [18] - Digital sales reached over $13,000,000,000 in 2024, with significant improvements in profitability noted in the fourth quarter [16][17] Market Data and Key Metrics Changes - Customers adjusted spending habits due to macroeconomic factors, with budget-conscious households reducing spending while less budget-conscious households remained resilient [12] - Inflation for 2024 was in line with expectations, with projections for 2025 inflation set at 1.5% to 2.5% [29][30] Company Strategy and Development Direction - Kroger aims to deliver total shareholder return of 8% to 11% over time, focusing on executing its go-to-market strategy and enhancing customer experience [9][10] - The company plans to significantly increase investment in major store projects, completing 30 major store projects in 2025 [34] - The board has formed a search committee for a new CEO, indicating a focus on leadership continuity and strategic execution [7][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate inflationary pressures and maintain low prices for customers [30] - The company is optimistic about future growth opportunities, particularly in digital sales and alternative profit businesses [19][38] - Management emphasized the importance of associate well-being and retention, which has reached record levels [31][32] Other Important Information - Kroger's net total debt to adjusted EBITDA ratio was 1.79, below the target range of 2.3 to 2.5, providing financial flexibility [33] - The company announced a new $7,500,000,000 share repurchase authorization, with an accelerated share repurchase program for $5,000,000,000 [35] Q&A Session Summary Question: Guidance for 2025 and CEO succession - Management indicated that operating profit growth is expected from both core and alternative profit businesses, with a focus on identifying the right leader for Kroger's growth [44][46][50] Question: Digital sales and profitability improvements - Management noted strong digital sales growth and improvements in profitability, with ongoing investments in technology and operational efficiency [55][56][58] Question: ID sales guidance and inflation impact - Management acknowledged that ID sales guidance reflects flat to slightly up volumes, with inflation expectations influencing the outlook [62][64] Question: Share repurchase and balance sheet strategy - Management confirmed plans for share repurchase and maintaining a leverage ratio that allows for flexibility in capital allocation [90][91] Question: Competitive pricing and inflation trends - Management highlighted the importance of competitive pricing and monitoring supplier price increases, with a strategy to keep prices low for customers [94][96]