S&T Overview Linda Gaskill __________________ Corning Incorporated July 13, 2016 Any reproduction of content and images requires expressed approval from Corning Incorporated. Our Core Premise: Corning makes life-changing innovations First low-loss optical fiber 2012 Glass ceramics 2007 1982 Dow Corning silicones 1970 1952 1934 1879 Glass envelope for Thomas Edison’s light bulb Active matrix liquid crystal display (LCD) glass Thin, lightweight cover glass with exceptional damage resistance Ultra-slim, flexible glass for thin and lightweight applications Ultrabendable fiber Label-free screening platform for drug discovery Heat-resistant PYREX® glass Fusion overflow process 1964 1915 Processes for mass producing the television bulb Environmentally conscious LCD glass First alloptical converged cellular and Wi-Fi solution 2013 2006 1972 1947 Ceramic substrates for automotive catalytic converters First EPAregistered antimicrobial cover glass . Science & Technology © 2016 Corning Incorporated 2 . . Corning Today . Science & Technology © 2016 Corning Incorporated 3 . . Corning Incorporated • Corning is the world leader in specialty glass and ceramics Founded: 1851 Headquarters: Corning, New York Employees: ~35,000 worldwide 2015 Sales: $9.8B • We create and make keystone components that enable high-technology systems for consumer electronics, mobile emissions control, optical communications, and life sciences • We succeed through sustained investment in R&D, more than 160 years of materials science and process engineering knowledge, and a distinctive collaborative culture Fortune 500 Rank (2015): 297 . Science & Technology © 2016 Corning Incorporated 4 . . Corning’s RD&E Organization Delivers New Products and Manufacturing Processes to Every Business at Corning Corning Market Segments 39% Display Technology • LCD Glass Substrates • Glass Substrates for OLED and high-performance LCD platforms • Includes CPM display sales 1930’s 2015 Revenue Share 30% 11% 8% Optical Communications Environmental Technologies Life Sciences Specialty Materials Corning Pharmaceutical Technologies Emerging Innovations • Emissions Control Products – Light-duty gasoline vehicles – Light-duty and heavy-duty onroad diesel vehicles – Heavy-duty non-road diesel vehicles – Stationary • Cell Culture and Bioprocess Tools • Drug Discovery • ADME/Tox • Genomics • Chemistry • Microbiology • General Laboratory Products • Corning® Gorilla® Glass • Display Optics and Components • Optical Materials – Semiconductor materials – Specialty fiber – Polarcor™ • Optics • Aerospace and Defense • Hyperspectral Imaging • Launched in 2015 to support pharmaceutical glass packaging • Formed equity venture (75% Corning) with Gerrescheimer AG glass tubing manufacturer • New product focus on strengthened glass containers for injectables • Gorilla® Glass for automotive glazing • Architectural glazing with Xchromics • Willow® Glass laminates for architecture • OLED lighting substrates • Antimicrobial glass for handhelds and paint • Advanced flow reactors • Optical Fiber and Cable • Optical Connectivity Solutions • Wireless Distributed Antenna Systems • Optical Cables for Consumer Networks • Copper Connectivity Components 1960’s 1970’s 1915 12% 1920’s New Businesses Years of 1st Invention . Science & Technology © 2016 Corning Incorporated 5 . . Centralized RD&E at Sullivan Park, Corning, NY Corporate Technology 8% sales 16% GM $774M RD&E Sullivan Park Central R&D Center 2 million sq. ft. for R, D, E and EIG > 2,000 employees Diverse Technical Workforce > 40 Countries Sullivan Park is a leading industrial R&D laboratory A career destination for top materials scientists and engineers . Science & Technology © 2016 Corning Incorporated 6 . . Sullivan Park Contiguous Campus – D&E Activities Corning® Gorilla® Glass Product Reliability and Applications Development Corning Fiber & Cable Center for Fiber Optic Testing Semi-works Manufacturing Facility for Glass Sheet and Roll-to-Roll Glass Processing and Finishing Semi-conductor Glass Products & Best Clean Room on Sullivan Park Campus . . . plus Pilot Manufacturing Facilities at Big Flats for 3D glass forming and ultracapacitor carbon materials and cells Fiber, Semicon Products & Gorilla® Glass Labs . Science & Technology © 2016 Corning Incorporated 7 . . Technology delivery also comes from our corporate labs in Europe, U.S. West Coast, and a growing presence in Asia Corning Research Center China Shanghai, China Corning Technology Center Korea Asan, Korea Corning West Technology Center Silicon Valley, California Corning European Technology Center Fontainebleau, France Corning Advanced Technology Center Taipei, Taiwan Research Center Shanghai, China Science & Technology Corning Scientific Center St. Petersburg, Russia Corning Technology Center Korea Asan, Korea . © 2016 Corning Incorporated 8 . . Corning’s Approach to Materials Innovation . Science & Technology © 2016 Corning Incorporated 9 . . New Products Created by Combining Advanced Inorganic Materials, Optical Physics and Process Inventions Materials + Processes = New Products . Science & Technology © 2016 Corning Incorporated 10 . . Deep Core Technology Capabilities – Science & Engineering Corning’s strength is based on a broad portfolio of core technologies… Inorganic Materials and Processes Engineering: - Materials - Optical - Process - Chemical - Electrical - Mechanical Optical Physics and Network Technologies Modeling and Simulation Organic Materials and Processes Core Capabilities Materials Characterization and Processes Network Integration and Connectivity Research Biochemical Sciences and Processes … and the ability to integrate them. Thin Films and Surface Sciences . Science & Technology © 2016 Corning Incorporated 11 . . Materials and Processing Facilities for Glass & Ceramics R&D • Glass Research – • Advanced Materials Processing Lab – • Crucible Melting for Glass Composition Research Fusion Process for Advanced Glass Technologies Cellular Ceramic Extrusion Glass Optical Fiber Draw Scale-up for continuous melting and forming process development Cellular Ceramics R&D Center – • High throughput glass composition screening and versatile glass forming capabilities for glass prototypes Process Research Center − • Exceptional glass scientific staff which creates generation after generation of higher performance specialty glasses Mixing, Extruding and Firing Capabilities Full Scale Optical Fiber Processing . Science & Technology © 2016 Corning Incorporated 12 . . Corning’s Display Applications Laboratory . Science & Technology © 2016 Corning Incorporated 13 . . Corning Optical Communications Applications Lab . Science & Technology © 2016 Corning Incorporated 14 . . Relationship of Innovation Process to RD&E Functions Commercial customers 5-stage Innovation Process I II III IV V Research Development Division Engineering / Manufacturing ------- Corp. Manufacturing Technology and Engineering --------- Emerging Innovations Business Group Existing or New Division / Partner --- . Science & Technology © 2016 Corning Incorporated 15 . . New Product Delivery . Science & Technology © 2016 Corning Incorporated 16 . . Corning Environmental Technologies Gasoline and Diesel Combustion After-treatment Technologies Flow-through Substrate Diesel Particulate Filter Aluminum Titanate New products from Corning Environmental Technologies • Flow-through ceramic honeycomb • Plugged channel honeycomb • Light duty diesel filters: aluminum titanate high porosity • Pollutants converted on surface • Particulates trapped on wall • Brand: Celcor® •standard & thinwall • Brand: DuraTrap® CO, RC, AT, AC Heavy duty thin wall diesel filters • Fast light-off gasoline substrates and filters • Gas particulate filters Cordierite Celebrating a 44 year product life cycle Light Duty Gasoline Substrates Light Duty Diesel Substrates & Filters Heavy Duty Diesel Substrates & Filters Non-Road Diesel Substrates & Filters . Science & Technology © 2016 Corning Incorporated 17 . . Life Science Research uses many Corning products Drug Discovery Bioprocess Cell Culture Liquid Handling Food & Bev Testing Lab Glass & Equipment New products developing in Life Science • Improved, lower cost liquid handling tools • Advanced cell growth surfaces for a variety of cell types • Bioprocess methods and tools for high volume cell growth • Epic® High accuracy drug discovery tools 100 years of Pyrex® Brand borosilicate glasses in 2015 . Science & Technology © 2016 Corning Incorporated 18 . . Corning PharmaceuticalTechnologies Advanced glass containers for parenteral pharmaceuticals . Science & Technology © 2016 Corning Incorporated 19 . . Corning Optical Communications Carrier Networks and Enterprise Networks ONE™ Wireless Optical Fiber, Cable, Connectors, Hardware Fiber To The Home Multiple Dwelling Units Central Office Fiber To The Antenna Data Centers Enterprise Wide-Area Networks Local Area Networks . Science & Technology © 2016 Corning Incorporated 20 . . SMF-28® Ultra Fiber offers better transmission with easier installation for all applications; Corning leads with 0.146 db/km • Compared to a standard single-mode fiber, SMF-28 Ultra fiber provides: − 10% Lower loss: supports up to 20% better transmission − 50% Better bend resistance: provides greater margin for bends that occur during installation and maintenance • Plus full backwards compatibility to the world’s installed base of standard single-mode fibers . Science & Technology © 2016 Corning Incorporated 21 . . More Dense Optical Data Center Designs: Fiber and Hardware Corning® ClearCurve® Multi-mode Fiber . Science & Technology © 2016 Corning Incorporated 22 . . Convergence of Optical Communications and Display Enables a ‘Fully Connected World’ and Big Opportunity for Corning >90 Billion WIRELESS ”THINGS” Connected Life Applications Personal Mobile Inflection points PEOPLE 7.0 B Global Connectivity PLACES ~0.5 B 1875 1900 1925 1950 1972 2000 2025 Corning Invented first low-loss optical fiber Source: Ericsson . Science & Technology © 2016 Corning Incorporated 23 . . Corning ONE™ Wireless One Source: http://12thman.com/facilities Science & Technology . © 2016 Corning Incorporated 24 . . Recent New Glass Product Innovations from Corning Iris™ Glass LCD glass light-guide plate enables thinnest-possible LCD TVs Lotus™ Glass Family High performance display glass optimized for high resolution LCD and OLED devices. Corning Lotus NXT™ Glass leading HPD market Willow™ Glass Ultra-slim flexible glass to enable thin, light and cost-efficient applications including slim displays and the smart surfaces of the future Gorilla® Glass 4 Damage resistant / drop resistant cover glass for portable consumer electronic devices and touch screens . Science & Technology © 2016 Corning Incorporated 25 . . Each Component of Phone Device Requires Technical Glass Corning® Willow® Glass Corning® Gorilla® Glass Cover Glass Substrate Glass (Touch sensor, color filter, TFT backplane) Corning Lotus™ XT Glass EAGLE XG® Slim Glass Substrate Glass (OLED, LTPS-LCD displays, Oxide-TFT backplane) Substrate Glass (a-Si backplane) Enabling complex electronic circuits with greater functionality . Science & Technology © 2016 Corning Incorporated 26 . . Iris™Glass is the next piece of technical glass in the LCD TV display for bright color gamut, high definition, and very thin form factors . Science & Technology © 2016 Corning Incorporated 27 . . Big trends in Display Technologies are high definition displays, and thinner glass . . . and roll-to-roll flexible glass has arrived 0.7 mm 0.5 mm 0.4 mm 0.3 mm 0.2 mm 100 – 10 u Roughly the thickness of a credit card Roughly the thickness of a bed sheet Roughly the thickness of denim fabric Roughly the thickness of a business card Roughly the thickness of aluminum foil Roughly the thickness of a sheet of copy paper (up to G8) (up to G6) (up to G6) Commercially Available Today Manufacturing Ready Glass Inventory Available . Science & Technology © 2016 Corning Incorporated 28 . . Gorilla® Glass Opportunity Developed from Real Contemporary Need Leveraging Aspects of 1960’s Technologies Fusion forming Glass optimized for chemical tempering 1964 Cover Glass for HH/IT/TV 1962 2007 Emerging Applications . Science & Technology © 2016 Corning Incorporated 29 . . Corning® Gorilla® Glass is the industry standard cover glass “We couldn’t have done it without you” Note received by Weeks from Steve Jobs on the day the iPhone shipped Forbes 9/04/2013 “Working With Innovators From Thomas Edison To Steve Jobs, Corning Finds A Glass Fix” Due to customer agreements, we cannot identify all devices that feature Gorilla® Glass, but here are some of the brands that are putting Corning® Gorilla® Glass on their mobile devices: . Science & Technology © 2016 Corning Incorporated 30 . . A Few Examples High Tech Auto Interiors Interior Architecture Exterior Windows for Autos . Science & Technology © 2016 Corning Incorporated 31 . . Architecture Architecture . Science & Technology © 2016 Corning Incorporated 32 . . The Grand Challenge: Innovation Programs for Converting the Vision of Day Made of Glass into Reality ► Go to Corning.com User Interface Touch-enabled Cover Glass Platform Information Rendition High-performance Substrate glasses for LCD, OLEDs, transparent and interactive displays Information Conveyance Fiber & Wireless Solutions Economic Display Manufacture Flexible Glass for Roll-to-roll Manufacturing . Science & Technology © 2016 Corning Incorporated 33 . . Making Possibilities Real . Science & Technology © 2016 Corning Incorporated 34 . .