TOYO Co., Ltd Ordinary Shares Analyst Day 2026

Good morning, everyone. If everyone could take their seats, I would greatly appreciate it. While you are doing so, I want to just give a quick safety announcement. As a manufacturing facility and a manufacturer, Toyo takes safety very seriously. Throughout the day, please be aware of all of the safety practices on the floor if you are doing the tour or within this facility here as we are going through the presentations. If an alarm goes off at any point in time, we ask everybody to go to the immediate exit area. If you cannot find it, there will be a Toyo employee with you at all times to make sure that you are directed in the right position. If you have any questions at any point in time, again, reach out to any of us. We are happy to answer your questions about safety and procedures.

Good morning and welcome to Toyo's Solar Analyst Day. I am Rhone Resch. I am the Chief Strategy Officer of Toyo. On behalf of the entire leadership team, thank you for joining us here in Humble, Texas, and online, of course, for those who are watching us through the webcast. For those who are here in person, we are pleased to welcome you to our new 2-gigawatt U.S. module manufacturing facility. This campus represents an important step in Toyo's growth and in our broader strategy to build a more secure and competitive solar supply chain in the United States. Today, we want to give you a clear understanding of that strategy, the progress we have made, and the work ahead. Before we begin, I need to cover our safe harbor statement.

Today's presentation contains forward-looking statements, including statements about Toyo's strategy, expected growth, manufacturing plans, future production, capital requirements, regulatory developments, and other expectations about our business. These statements reflect management's current views as of today. They involve assumptions, risks, and uncertainties that could cause actual results to differ materially from those discussed. Please review the safe harbor language on this slide, together with the risk factors and other disclosures in Toyo's filings with the Securities and Exchange Commission. Toyo undertakes no obligation to update these statements except as required by law. We may also discuss non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures appear in the appendix in today's presentation. Okay, got the business out of the way. Here is the agenda for today. It is a fun one for sure.

We are going to start off with our CEO, Takahiko Onozuka, and he is going to talk about the strategic direction and the market forces in the United States and our solar supply chain. Then our CFO, Harada-san, will review our first half financial performance, go through the balance sheets, capital plans, including the funding approach for our proposed HJT facility. Then I am going to come back up here and I will go through some of the changing dynamics in the U.S. policy environment that affects solar. I am going to talk a little bit about our U.S. supply chain strategy and the steps we are taking to expand manufacturing here in the United States. We are then going to cover solar manufacturing and specifically the quality of manufacturing, supply chain issues, and then we are going to talk a little bit about HJT technology.

And for us, this is the long-term growth strategy. It's a technology play, but it's also a manufacturing play here in the United States. So we've reserved time at the end for questions. So we encourage you to use that discussion to explore the issues most important to your analysis of the company. So if you could hold off on questions until the end. And then, of course, after this, we're going to have an open public event, which is a ribbon-cutting ceremony for the 2-gigawatt facility, and that will begin at 11:00 A.M. Okay. Oops. So today's presentation brings together the central elements of Toyo's investment story, our established global manufacturing base, our growing U.S. presence, our financial performance, and our plan to move further upstream into advanced solar technology. Leading that strategy is our Chairman and Chief Executive Officer, Takahiko Onozuka.

Onozuka-san brings more than 40 years of experience in international finance, energy infrastructure, and decarbonization. Since becoming Chairman and CEO in March, he has focused Toyo on disciplined growth, U.S. manufacturing, and the development of a secure, non-FEOC supply chain. Please join me in welcoming Toyo's Chairman and CEO, Takahiko Onozuka.

Good morning, everybody, and welcome to Humble, Texas. Thank you to everybody for traveling here today. In just a few minutes, we'll cut the ribbon on our 2-gigawatt module facility. Our second module line is complete. Toyo now has 2 gigawatts of module capacity right here in Houston. Think about how quickly this has moved. In September 2025, we acquired the VSUN brand, which opened more doors in the U.S. market. A month later, our first Houston module line began operating. Today, a second line is finished. And we are not stopping at the modules here in Humble. We are planning a $357 million HJT cell facility. Design work is complete, and we are now applying for permits. We expect pilot production in the first quarter of 2028. So why Humble and why now? To answer that, let me first tell you who Toyo is.

Toyo is a company with a global footprint. Our headquarters are in Tokyo. We are listed on NASDAQ, and our factories stretch from Hawassa, Ethiopia to Vietnam, and now to Texas. Our core strength is solar cells. A cell is the heart of a solar panel, and making it well takes real know-how. The recipe, the equipment, and the engineering. We learn it every day. We have built 6 gigawatts of cell capacity, 4 gigawatts in Ethiopia, 2 gigawatts in Vietnam. We care just as much about how we build. We are creating a non-FEOC supply chain. FEOC stands for Foreign Entity of Concern. Our customers want products they can trust, so we track our materials batch by batch. And we care about quality. In August, Intertek, an independent auditor, reviewed our Houston module factory. Their audit found no major or no critical issues.

Our first half results show this approach is working. Mr. Harada-san will take you through them in a few minutes. Let me explain the opportunity within the U.S. Demand for solar is steady. About 43 gigawatts are installed in the U.S. every year, and they expect similar levels through 2035. On the supply side, the U.S. has done building modules. It has about 75 gigawatts of module capacity. This is more than the market needs each year. But look further up the supply chain. Cell capacity today is only about 3 gigawatts, with more than 30 gigawatts under development. Wafer capacity is only about 5 gigawatts, and that is the tightest point in the chain. Think of the solar supply chain as a chain, literally. America has a strong last link, module, but the middle link, wafer and cell, are thin.

A chain is only as strong as its weakest link. This is a gap. We want to fill it. We have the experience to help. We have designed, built, ramped up the facility across the two countries. We know how difficult it is, and we know how to do it. In Humble, we will use HJT technologies. HJT stands for heterojunction. Picture a sandwich, a silicon wafer in the middle, with retreating layers on both sides. The result is higher efficiency and strong performance in hot weather. It also leaves room to add perovskite on the top in the future, which is our path to even higher efficiency. The path is still in development. Step by step, our plan is clear. Module today, HJT cell starting in 2028. Over the long term, we want to help fill the upstream gaps, including wafers.

This is a long-term vision, not a commitment, and it depends on securing financing. Our theme for today is simple: manufacturing in Texas, empowering the future. We mean it. We bring Japanese ownership, global cell experience, and a clean supply chain to the American market. Thank you. Mr. Harada-san will walk you through the numbers.

Thank you, Onozuka-san. Good morning, everyone. I'd like to tell you the financial story of the first half in three chapters. Just a moment, please. First, how we grew. Second, how we strengthened our balance sheet. Third, how we plan to pay for what comes next. Chapter 1: Growth. Revenue for the first half was $261.0 million. That is up 87.6% from last year. In other words, revenue nearly doubled. Behind that number are our factories. We delivered 2.61 gigawatts of cells and 191.85 megawatts module in just six months. Gross profit was $84.7 million at gross margin of 32.5%. GAAP net income was $45.8 million. In the first half of last year, it was at $2.5 million. That is more than 18 times higher. Adjusted net income was $46.0 million.

This is a non-GAAP measure and the reconciliation in the appendix. Diluted earnings per share were $1.20. A year ago, they were $0.08. Next slide is Strengths. Chapter 2: Strengths. Cash at June 30th was $103.5 million. At the end of last year, it was $51.6 million. Cash has doubled. Including restricted cash, the total is $123.4 million. Shareholders' equity nearly doubled from $111.3 million to $209.8 million. Total asset grew to $537.6 million. Total liability were actually a little lower at $327.8 million. We grew without adding to our liabilities. There is another important change. Current assets are now $272.2 million, higher than current liability of $242.4 million. At the end, it was the other way around, $171.8 million of asset against the $295.7 million of liabilities. Our operation produced cash. Operating cash flow was $61.4 million, up from $40.0 million.

Just a moment please. Slide 15, Capital Raised. In the first half, we raised about $52.6 million in the net proceeds. In June, a registered direct offering where the institutional investors raised $50 million before cost, or about $47.1 million after cost. Our at-the-market program added about $5.5 million after cost through June 30th. We are putting this capital to work on early spending for the HJT facility and general corporate needs. Next slide is how we spend on HJT. The plan for Humble. The total planned investment in HJT facility is $357 million. Spending fall into five parts: design, procurement, civil construction, MEP, which means mechanical, electrical, and plumbing, and finally, installation of process equipment. We pay contractors by milestone, so payment for progress.