A
G
C
R
e
p
o
r
t
2
0
0
9
❷
❹
❸
❺
❶
❻
About the photographs on the cover:
❶：Naberezhnaya Tower (Russia)
❷：Optical planar devices
❸：Fluon ® ETFE FILM
❹：Automotive glass
❺：TFT LCD glass substrates
❻：Avignon Station (France)
©AGC Flat Glass Europe
AGC Report
2009
ASAHI GLASS CO., LTD.
URL: http://www.agc-group.com
Issued June 2009
*Soy ink is used for this Report
Part of this report (from p. 1 to p. 32) is printed
using “Morino Chonai-Kai Forest Thinning
Support Paper,” realized by a partnership
NPO supporting used paper recycling, and
Iwaizumi city (Iwate pref., Japan), which is
promoting forest restoration.
One Group, One Name
On Asahi Glass Company’s 100th anniversary in September 2007, we adopted
“AGC” as the unifi ed corporate brand for the entire AGC Group. Accordingly,
each Group company, including overseas companies, incorporated ”AGC” in their
legal names.
By designating AGC as a globally unifi ed corporate brand, we intend to
strengthen the sense of community and cooperation among AGC Group
employees while clearly communicating the AGC Group’s broad-ranging business
domains to stakeholders in an easy-to-understand manner. Through such
efforts, we will accelerate our global growth strategy.
Nardini Distilleries Research & Events Center
- Photographer M.Danesin - Architect M. Fuksas
AGC Report 2009
Contents
Top Message
2 Under the new Management Policy
, we will build the
foundations for growth.
AGC Group Vision,
Management Policy
4
5
AGC Group Vision,
Management Policy
Delivering Technology Solutions for Climate Change
Second Round of Globalization
Glass-Technology-Driven Company
Medium-Term Management Plan
14
Research & Development creating the future
of the AGC Group
AGC Group Now
16
Corporate Data/Organization Data/Consolidated Financial Highlights
18
20
22
AGC Group around the World
Outline by Business Segment
Business Overview
Glass Operations
Electronics and Display Operations
Chemicals Operations and Other Operations
28
30
31
32
AGC Group’s CSR
Corporate Governance, Internal Control and Risk Management
Board of Directors, Corporate Auditors and Executive Officers
AGC Milestones 1907–2009
Communication Tools
The AGC Group promotes communication with stakeholders
through various measures.
General corporate activities
“AGC Report”
Company brochure
and annual report
introducing the AGC
Group’s vision as well
as business highlights.
(This report)
Financial information
“Financial Review”
Report listing the
AGC Group’s business
outline and financial
information including
a consolidated
financial statement.
CSR activities
“CSR Report”
Report on The AGC
Group’s social and
environmental
activities based on
our “AGC Group
Charter of Corporate
Behavior.”
Activities of each corporate site
“Site Report”
* On sites in Japan only
Introduces environmental,
workplace safety and
health, security and
disaster prevention and
other activities at Asahi
Glass plants and main
Group companies.
Comprehensive information
Website
Offers a broad
introduction of the
AGC Group through
timely information
disclosure.
AGC Group Website
http://www.agc-group.com
Asahi Glass
CSR Website
http://www.agc.co.jp/
english/csr/
Asahi Glass
Investor Relations
Website
http://www.agc.co.jp/
english/ir/
AGC Report 2009
1
Top Message
Under the new Management Policy
the foundations for growth.
The year 2008 was a year of turbulence. While the
AGC Group achieved record high operating income in
the fi rst half of the year, income and profi ts declined
in the latter half due to the impact of the global
recession. It is not, however, the AGC Group alone that
faces the challenges brought about by the economic
crisis. What is important for the AGC Group is that
we gather suffi cient strength to prepare ourselves for
the period of demand recovery, which is certain to
come. We will not hold back, but continue to actively
invest our resources in areas such as development of
technology to prevent climate change, and cultivation
of global-minded personnel.
The new Management Policy
to realize the AGC Group Vision.
has been formulated
The AGC Group believes that the prerequisite to
corporate existence is to fulfi ll its social responsibility
and to obtain trust from society. In addition, we aspire
to meet the expectations of society and to continue
to grow as a corporation. Upon assuming the post
of President and COO last year, I formulated the new
Management Policy
realize the AGC Group Vision,
in order to
,
announced in 2002. Crucial themes highlighted in
are: “Build foundations for
growth” and “Our people are our strength – each
employee must exert their maximum strength aiming at
growth as a whole Group.”
We will build the foundations for
growth, and aspire to become a true
global company.
The AGC Group will closely look at mid- to long-term
changes in the market as we focus on the following
three viewpoints to build the foundations for growth.
2
AGC Report 2009
, we will build
1
We will deliver technology solutions for
climate change.
to launch operations in new countries and regions
that are expected to grow rapidly, such as BRICs, with
Addressing climate change is a major issue for the
a view to providing the best products to customers
AGC Group, as this is relevant to the continuation of
around the world. In order to gain acceptance in new
our business. It also provides us with an important
markets, we will strive to construct new business
opportunity to contribute to society through our
models tailored to the culture and practices of each
business. Production of glass requires a large amount
country.
of energy. It is duly our responsibility to improve this
situation, and the AGC Group is determined to make
sincere efforts toward this end. We also fi rmly believe
that, we will be able to contribute to solutions for
climate change, by leveraging our glass, chemicals
Under the slogan of “Our People are Our
Strength,” we will promote the growth
of our employees and the Group.
and ceramics technologies to develop high-effi ciency
The “people” are what performs various tasks and
photovoltaic materials and energy-saving glass, and by
thus supports the growth of the AGC Group. Under
promoting global penetration of these products.
the slogan of “Our People are Our Strength,” we will
2
Glass-technology-driven Company:
provide opportunities that allow our employees who
aspire to grow to exert their maximum strength, so
We will serve new needs through
they can grow with AGC Group. By creating a virtuous
differentiation of the AGC Group’s core
cycle of growth of both our people and the Group, we
technologies.
will gather strength as a company to assure continued
The AGC Group will contribute to society around the
growth of the Group.
world by enhancing our core glass technology. We are,
for example, developing technology that halves the
Approximately 50,000 employees of the AGC Group
energy consumption required for production. This will
work in some 30 countries and regions with different
enable dramatic improvement of production effi ciency,
commercial practices and social needs. Each employee
as well as substantial reduction of both environmental
will adopt and follow the four Shared Values in the
burden and manufacturing cost. We will also provide
Group Vision
and fulfi ll their
our products with higher added value by further
social responsibilities in their respective countries and
promoting integration of glass, chemicals and ceramics
regions, as well as provide products and services with
technologies.
high added value. Through this approach, we are
aiming at becoming a true global company that can
3
Second Round of Globalization:
meet the expectations of society.
We aspire to make a further leap forward as a
global company.
The AGC Group will continue to closely monitor and
anticipate trend shifts in the world and reinforce our
global management strength. The Group currently
operates business in Asia, Europe and North America.
In addition, we will work to take on new challenges
Kazuhiko Ishimura
President & COO
AGC Report 2009
3
AGC Group Vision
AGC Group Vision
Through unceasing reform and innovation, we will accelerate growth under unified global management.
To this end, all members of the AGC Group around the world share our Group Vision and continue to
work in unison to take on new challenges.
We, the AGC Group, “Look Beyond”
to make the world a brighter place.
As a global materials and components supplier, based on our
core technologies in glass, fluorine chemistry and their related
fields, we will continue to:
… Anticipate and envision the future,
… Have perspectives beyond our own
fi elds of expertise and
… Pursue innovations, not becoming
complacent with the status quo.
By “Looking Beyond,” we will continue to create value
worldwide, demonstrating the vast potential of the Group’s
entire organization.
Our Shared Values
Our four Shared Values are to be adopted and followed by all members of the Group and are of
the foremost importance in accomplishing Our Mission. These Shared Values, described below, will
serve as the basis for every judgment we make and action we take collectively and individually.
■ Innovation & Operational Excellence
We will continuously pursue innovations in technology, products, services, business models and human resources. We will
continuously improve our operations for maximum efficiency and quality in every activity and at all times strive for the highest
possible standard of performance.
■ Diversity
We will respect individuals with different cultures, capabilities
and personalities, and our global management will operate
without regard to nationality, gender or background.
■ Environment
We, as good global citizens, will shoulder the responsibility to
contribute to a sustainable society in harmony with nature.
■ Integrity
We will build open and fair relationships with all of our
stakeholders based on the highest ethical standards.
4
AGC Report 2009
Innovation & Operational Excellence
Diversity
Integrity
Environment
Management Policy
To achieve further growth as a leading global company with glass business
as our core, we will closely look at mid- to long-term structural changes in the market
and seize opportunities in a timely manner as we continue to operate
under our Management Policy.
and...
Build foundations for growth of
the AGC Group, looking at mid-
and long-term structural changes
in the global market
Second Round of
Globalization
Building
Foundations for
Growth
Delivering
Technology Solutions
for Climate Change
Glass-Technology-
Driven Company
Embed the mindset of
, the former
management policy, as the AGC Group’s DNA
Realize the full potential of our people
under the slogan of “Our People are Our Strength”
By around 2030, the global environment in terms of market structure, resources and energy is forecasted to change
dramatically. China, South America, India and other countries are expected to be the major markets in addition to the
advanced countries. There is a possibility that, against a background of growing nationalism over natural resources,
shifting of manufacturing bases from consumption areas to raw material rich areas or countries where raw materials
are cheaper, such as the Middle East and Russia, will become even more critical. Climate change will need to be
addressed in a more serious and earnest manner.
The AGC Group must anticipate and closely look at such changes and respond to them in a timely manner to
continue to grow further as a leading global company with glass business at its core. The Management Policy
has been formulated to lead the Group’s endeavors toward this end.
means “grow and change” beyond conventional frameworks such as business areas, regions,
markets and existing technologies. It places top priority on building the next foundations for growth.
AGC Report 2009
5
Delivering Technology
Solutions for
Climate Change
In order to contribute to the prevention of climate change,
the AGC Group will further the development and promotion of
products with high CO2 reduction effects such as those for photovoltaic
use and fuel cells. In addition, we will actively implement measures to
improve the energy effi ciency of our production technologies as a glass
and chemicals manufacturer consuming a large amount of energy.
● Group-wide promotion of solar business
The photovoltaic market is expected to grow continuously. The AGC Group will gather its technological strength
in the glass, chemicals and ceramics areas to cater to various types of photovoltaics.
● Approach to the development of technologies for reduction of CO2 emissions
Production process:
The AGC Group is working to realize practical application of an innovative technology called “in-fl ight melting.”
In-fl ight melting is a method through which raw materials for glass are melted while in the air, using a
combustion fl ame, such as plasma, of 2,000 degrees Celsius or higher.
In-fl ight melting enables dramatic reduction of time required to melt and homogenize glass, and the production
facility can be substantially smaller in scale compared to conventional furnaces, thus the energy consumption
and CO2 emissions in manufacturing are expected to be halved.
Products and business opportunities:
The Group will venture into new growth areas including photovoltaic products, windows with high levels of
thermal insulation and lightweight glass for automobiles. In addition, we will seek to expand our Chemicals
operation in areas such as the development of technology for collection and decomposition of greenhouse
gasses, and technology for high thermal insulation materials.
6
AGC Report 2009
ETFE fi lm
解像度不足
Photovoltaic TCO glass substrates
Stuttgart Art Museum (Low-E glass)/Germany ©AGC Flat Glass Europe
Photovoltaic cover glass
Glass tubes
解像度不足
Homes in amazing environment (double glazing with high thermal insulation)/Netherlands
Glass frit
Ceramics sputtering target
AGC Report 2009
7
Second Round of
Globalization
We will make another leap forward as a global enterprise.
Anticipating global changes in the business environment such as
the growth of the BRICs, we will strengthen the Group’s global
management capability and we will also start our business in areas
where we have had no previous business operations in order to build
new foundations for our future growth.
● Continuous development of business in new growth regions and
cost-competitive areas
We will strive to further increase profi tability in Japan, Asia, Europe and North America where existing operational
bases of the Group are located.
We will also consider establishment of new business models, different from those in existing markets, in newly
emerging markets that are expected to grow rapidly.
In addition, we will enhance operations in the Shanghai base.
● Reinforcement of our global organization and management strength
In order to roll out global operations, both our organization and our employees need the ability to think and act
globally.
We will further reinforce the Group’s global organizational capability in existing markets in Japan, Asia, Europe and
North America, and build such capability in new regions at the same time.
We will also endeavor to enhance our organization and management skills by cultivating human resources who can
exert their full potential in a global arena, without regard to nationality, gender or background.
8
AGC Report 2009
Group members in Belgium
Group member in the United States
Group members in Thailand
Group member in the United States
Group member in Belgium
Group member in China
Group members in Japan
Group members in Thailand
Group members in Belgium Group members in the United Kingdom
Group members in Russia
AGC Report 2009
9
Glass-Technology-
Driven Company
We will differentiate our business by the following measures: to refi ne
the AGC Group’s glass technologies we have accumulated over years,
to combine glass, chemicals and ceramics technologies to provide
our customers with higher value, to save costs drastically through the
innovation of production processes, and to develop new business
models through the use of IT (Information Technology).
● Differentiation of glass-related technologies, the source of our growth
As a Glass-technology-driven company, we have set three directions for our business operation: “create higher
added value,” “achieve overwhelming cost-competitiveness through innovation of manufacturing processes” and
“actively promote establishment of new business models that transcend typical manufacturing.”
To this end, the AGC Group will enhance development of new glass compositions, develop high-quality materials
through integrated operation, and establish innovative production technologies such as in-fl ight melting.
We will also enhance our production technology by fully utilizing our comprehensive strengths including
technologies in chemicals and ceramics.
● Differentiation in the area of Electronics & Energy
We will further refi ne our technological strength created through integration of glass, chemicals and ceramics
technologies in the Electronics & Energy area, which will become the engine for growth in the future.
10
AGC Report 2009
Antwerp’s Law Courts (Belgium) ©AGC Flat Glass Europe
解像度不足
Synthetic quartz glass
Jigs for manufacturing
semiconductors (Silicon carbide)
Manufacturing process of
electroforming refractory
解像度不足
解像度不足
Group member in Germany
TFT LCD glass substrates
Group members in the United States
Group member in Belgium
Manufacturing process of fl at glass
Fluorinated water/oil-repellent coating material
Micro glass lenses
Manufacturing process of fl at glass
解像度不足
AGC Report 2009
11
Medium-Term Management Plan
“
”
The AGC Group has formulated a three-year Medium-
Term Management Plan, “
starting in 2008, under its Management Policy
”,
. The Group has been executing
various measures to realize the basic concepts of the
Management Plan, which are “Build foundations
for growth” and “Enhance business strength and
competitiveness.”
Against the backdrop of the recent rapidly
deteriorating economic conditions, we have added a new
concept, “Responding to sudden changes in the business
environment” to the Medium-Term Management Plan.
We will respond fl exibly to the change of demand by
taking measures such as adjustment of production output
while accelerating R&D activities and cultivation of human
resources, through which we can gather our strengths in
order to make huge leaps when demand recovers, which
is surely to come.
Group Vision, Management Policy and Action Plan
2004
2005
2006
2007
2008
2009
2010
2011
Group Vision
Management
Policy
Shrink
to
Grow
Action Plan
(Medium-Term
Management Plan)
12
AGC Report 2009
2007
S to G 2005
New Management Policy
Concrete strategy, business strategy and its
action plan to achieve the target in 2010
based on the new Management Policy
*1
*1 Renamed from in 2009
2010
AGC Group Management Policy
Medium-Term Management Plan
”
“
Build foundations for growth
Enhance business strength and competitiveness
Current economic circumstances
Respond to sudden change of business environment
Four Major Issues in Building Foundations for Growth
1
Group-wide promotion of solar business
While short-term growth is slowing due to deteriorating economic conditions, the solar business is expected
to grow in the future as solar power draws wide attention as the next-generation energy. We will make
group-wide efforts to promote the development of our solar business.
2
Addressing the climate change issue
As a high energy-consuming glass manufacturer, the AGC Group will develop CO2 reduction technologies for
production processes, as well as expand the use of technologies for reduction of CO2 emissions in our products.
3
Second round of globalization
We will continuously develop and operate business in new growth regions and cost-competitive regions.
4
Execution of various measures across In-House Companies to become a glass-technology
driven company
We will leverage the strengths of the AGC Group, which possesses chemicals and ceramics technologies in
addition to glass technologies, and pursue synergy across the entire Group.
Reforming System toward the Enhancement of Business Strength
and Competitiveness
The AGC Group has implemented organizational
■ Glass Company*2
changes as of July 21, 2009.
The former Flat Glass Company and the former
Automotive Glass Company have been integrated
to form “Glass Company” so as to further
enhance competitiveness through seamless
production and operation ranging from raw glass
production, processing and making into fi nal
glass products.
Also, the former Display Company and the
former Electronics & Energy General Division have
been integrated into the “Electronics Company.”
By integrating core technologies in the respective
fi elds and generating differentiated technologies,
we will establish a system that can supply the
products catering to market needs in a further
timely manner.
*2 In-house Companies are business units that operate globally,
generally with net sales of over 200 billion yen.
Raw glass
Process
Final products
Flat glass
Automotive glass
Enhance competitiveness through
a seamless operation system
■ Electronics Company
Display
Electronics
& Energy
Enhance competitiveness through integration
of core technologies
AGC Report 2009
13
Research & Development
Research & Development
creating the future
of the AGC Group
Since its foundation, the AGC Group has developed its core technologies
centered on glass, fl uorine and chemistry, and ceramics technologies.
We will work to realize the concepts articulated in the Management
Policy
application of our core technologies, based on the knowledge we have
accumulated.
through sophistication, combination and
Plasma combustion fl ame in an in-fl ight melting furnace
Core technologies — the driving force behind building
the foundations for growth, and development of new businesses
The AGC Group positions “glass materials and glass
production technologies,” “coating technologies,” “optics
and electronics technologies,” “ceramics material
technologies” and “fl uorine and chemistry technologies,” as
well as “fundamental common technologies” that support
the above, as its current core technologies.
In turn, our Management Policy
articulates “company-wide promotion of solar business,”
“measures against climate change” and “Glass-technology-
driven company” as the foundations for growth.
We will strive to build the foundations for growth set
forth in
combination and application of our core technologies.
through sophistication,
Core technologies of the AGC Group and foundations for growth set forth in
Core
technologies
Glass materials
and glass
production
technologies
Coating
technologies
Optics and
electronics
technologies
Ceramics
materials
technologies
Fluorine and
chemistry
technologies
Fundamental
common
technologies
Liquid crystal
materials
technology
Refractory
lining
technology
Fluorine
chemistry
technology
Fine ceramics
technology
Electrochemistry
technology
Inorganic
materials
technology
Sensing
technology
Equipment
technology
Evaluation
and analysis
technology
Nanomaterials
technology
Simulation
technology
Photolithography
technology
Assembly
technology
Optical
design
technology
Foundations
for growth
Glass materials
design
technology
Dry coating
technology
Glass
manufacturing
technology
Wet coating
technology
Glass forming
and processing
technology
Patterning
technology
Company-wide
promotion
of solar
business
Measures against
climate change
Glass-technology-
driven company
14
AGC Report 2009
We anticipate changes of the times and carry out seamless operations ranging
from basic research to product development
The AGC Group formulates a Technology Roadmap based
on our Technology Outlook that looks at various trends with
a long-term vision, and thereby sets the direction of our
technology strategy.
In R&D, the Research Center handles basic, long-term,
innovative, and inter-business themes. Development Centers
affiliated with the business departments of each In-House
Company or Strategic Business Unit (SBU) enhance production
technologies and undertake product development in close
contact with customers. Meanwhile, the Engineering Center
undertakes the development of innovative production
technologies and equipment technologies. In addition, the
Production Technology Development Center was established
in 2008 to propel and promote the realization of a “Glass-
technology-driven company.”
Technology Outlook and Technology Roadmap, which define the direction of technology strategies
We work to develop and create technologies, products and businesses in a timely manner
by globally sharing our Technology Outlook and Technology Roadmap.
Energy
Population
Resources
etc.
Construction/
Housing
Transportation
Electronics
Energy
Technology Outlook
Transforming of global trends, microtrends
Development and trends in customers’ industries
Generating technologies,
products, and businesses
on a timely basis
Technology Roadmap
Current/new business domains,
current/new technology domains
Latest innovative technologies of the AGC Group
Solar
business
Measures against
climate change
Measures against
climate change
Glass-technology-driven
company
“Transparent conductive oxide (TCO) fi lm” improves
power generation effi ciency of thin fi lm silicon solar cells
“In-fl ight melting technology” that halves the energy
required during the glass production process
The AGC’s TCO fi lm has unique characteristics: high conductivity
with low electric resistance and a very effi cient solar light
diffusion property. Although our fi rst product, Type U TCO
became the world’s standard, its ability to diffuse incoming solar
light, measured by haze rate, was about 10%. AGC launched the
Type VU TCO with improved haze rate and further unveiled the
development of Type HU TCO, which can diffuse up to 90% of
incoming solar light through our original nano-scale fi lm forming
technology. The unique concavoconvex shape of Type HU TCO
makes it possible for the coating to refl ect solar light in a more
complex manner in order to confi ne more light to the photovoltaic
layer for superior power generation effi ciency. The AGC Group
also possesses a technology to coat TCO continuously onto fl oat
glass at the time the glass is produced. We will further endeavor, in
our development activities, to meet the needs of customers.
Thin-film silicon type
One of the technologies under development at the AGC Group
to reduce CO2 emissions during the production process is the
in-fl ight melting technology. With this technology, granulated
raw material mixtures are prepared prior to feeding them
into the furnace. These granules are then injected into a
furnace and instantaneously melted by a combustion fl ame,
such as plasma, at a temperature of over 2,000°C to produce
high-quality glass without air bubbles, using a small amount
of energy. Applied to mass production, this technology will
enable halving CO2 emissions and energy consumption during
the production process.
In-flight melting technology
Conventional furnace
In-flight melting furnace
TCO film
(brings out electricity & scatters light)
Raw materials
Combustion burner
Melting
Refining
/
g
n
i
t
l
e
m
i
t
h
g
fl
-
n
I
g
n
i
r
r
i
t
s
d
e
e
p
s
h
g
H
i
To
forming
process
Granulated raw materials
Raw
materials
High-speed refining
To
forming
process
Solar energy
Float glass
Back electrode
(brings out electricity)
Thin-film silicon
(converts solar energy to electricity)
Magnified
photo of the
Type HU TCO
film
Diffusion of light is
improved by creating
smaller concavoconvex
on the surface of the
larger one
Energy consumption for glass
melting could be reduced
by more than half
Extremely small-scale furnace
Drastically shorter time for melting &
refining（within a second for in-flight
melting; several hours for
homogenizing & refining through high
speed stirring）
Energy consumption to melt glass
Half
Wall heat loss
Exhaust heat loss
Melting
Conventional
In-flight melting
AGC Report 2009
15
AGC Group Now
Stuttgart Art Museum (Germany) ©AGC Flat Glass Europe
To foster a deeper and clearer understanding of the AGC Group, we introduce
our recent overall business-related activities in the following section. This
includes a review of our business results for the fiscal year ended December 31,
2008, and an overview of each business segment, as well as a description of our
corporate social responsibility (CSR) initiatives.
16
AGC Report 2009
Corporate Data
■ Name
■ Head Offi ce
■ Founded
■ Incorporated
■ Capital
■ Outstanding stock
■ Employees
Asahi Glass Co., Ltd.
1-12-1, Yurakucho, Chiyoda-ku, Tokyo 100-8405 JAPAN
September 8, 1907
June 1, 1950
90,873 million yen
1,186,705,905 shares
6,110 (non-consolidated) 47,770 (consolidated)
■ Consolidated Group companies
192 (151 overseas)
As of the end of December 2008
Organization Data
Corporate
Auditors
Board
of Directors
Management
Committee
Group Corporate
Shared Service Centers,
Research Center, etc.
Glass Company
*1
Electronics Company
*2
Chemicals Company
AGC Ceramics Co., Ltd.
*1: The former Flat Glass Company and the former Automotive Glass Company have been integrated to form “Glass Company”
*2: The former Display Company and the former Electronics & Energy General Division have been integrated to form “Electronics Company”
Organizational changes implemented as of July 21, 2009
Consolidated Financial Highlights
Net Sales
Operating income
Net income
Total assets
¥1,444.3 billion
¥154.0 billion
¥39.2 billion
¥1,832.8 billion
(billions of yen)
Operating income
(billions of yen)
Operating income margin (%)
(billions of yen)
Total assets (billions of yen)
Net assets (billions of yen)
1,620.5
1,681.2
197.5
69.6
136.6
8.4%
11.7% 10.7%
45.0
2,149.5
2,108.1
991.8
1,027.3
780.9
’06/12
’07/12
’08/12
’06/12
’07/12
’08/12
’06/12
’07/12
’08/12
’06/12
’07/12
’08/12
AGC Report 2009
17
AGC Group around the World
As a global supplier of materials including glass, electronic materials,
chemicals and ceramics, the AGC Group carries out its business activities
in Japan, Asia, Europe and North America, backed by approximately
50,000 employees in roughly 30 countries and regions worldwide.
Asahi Glass Co., Ltd.
AGC Global Network
Asahi Glass Co., Ltd.
◆
Japan
● AGC Glass Kenzai Co., Ltd.
● AGC Okinawa Glass Kenzai Co., Ltd.
● AGC Glass Products Co., Ltd.
● AGC Façade & Interior Engineering Co., Ltd.
● AGC Amenitech Co., Ltd.
● AGC Fabritech Co., Ltd.
● AGC Automotive AMC Co., Ltd.
● AGC Automotive ACC Co., Ltd.
● AGC Automotive Takahashi Co., Ltd.
● AGC Display Glass Yonezawa Co., Ltd.
● AGC Electronics Co., Ltd.
● AGC Techno Glass Co., Ltd.
● AGC Micro Glass Co., Ltd.
● Ise Chemicals Corporation
● AGC Si-Tech Co., Ltd.
● AGC Engineering Co., Ltd.
● AGC Seimi Chemical Co., Ltd.
● AGC Coat-Tech Co., Ltd.
● AGC Polymer Material Co., Ltd.
● AGC Green-Tech Co., Ltd.
● AGC Wakasa Chemicals Co., Ltd.
● AGC Matex Co., Ltd.
● AGC Ceramics Co., Ltd.
● AGC Research Institute Co., Ltd.
● AGC Insurance Management Co., Ltd.
● AGC Finance Co., Ltd.
● AGC Logistics Co., Ltd.
● AGC Technology Solutions Co., Ltd.
Asia
Thailand
● AGC Flat Glass (Thailand) Public Co., Ltd.
● AGC Automotive (Thailand) Co., Ltd.
● AGC Electronics (Thailand) Co., Ltd.
● AGC Techno Glass (Thailand) Co., Ltd.
● AGC Micro Glass (Thailand) Co., Ltd.
● AGC Chemicals (Thailand) Co., Ltd.
● AGC Technology Solutions (Thailand) Co., Ltd.
Indonesia
●● P.T. Asahimas Flat Glass, Tbk
● P.T. Asahimas Chemical
Singapore
● AGC Flat Glass Asia Pacifi c Pte. Ltd.
● AGC Electronics Singapore Pte. Ltd.
● AGC Chemicals Asia Pacifi c Pte. Ltd.
● AGC Singapore Services Pte. Ltd.
Malaysia
● AGC Flat Glass (Malaysia) Sdn. Bhd.
● MCIS Safety Glass Sdn. Bhd.
Philippines
● AGC Flat Glass Philippines, Inc.
● AGC Automotive Philippines, Inc.
Taiwan
● AGC Display Glass Taiwan Co., Ltd.
● AGC Electronics Taiwan Co., Ltd.
India
●● Asahi India Glass Co., Ltd.
China
● AGC Flat Glass (Dalian) Co., Ltd.
● AGC Flat Glass (Suzhou) Co., Ltd.
● AGC Flat Glass Protech (Shenzhen) Co., Ltd.
● AGC Flat Glass (Hong Kong) Co., Ltd.
● AGC Automotive China Co., Ltd.
● AGC Automotive Foshan Co., Ltd.
● AGC Chemicals Trading (Shanghai) Co., Ltd.
● Zibo Asahi Glass Alumina Materials Co., Ltd.
● Zibo GT Industrial Ceramics Co., Ltd.
● Plibrico (Dalian) Industries Co., Ltd.
● AGC Shanghai Co., Ltd.
Korea
● Korea Autoglass Corporation
● Hankuk Electric Glass Co., Ltd.
● Hanwook Techno Glass Co., Ltd.
18
AGC Report 2009
Japan
Number of employees approx. 13,000
Net sales
¥810.8 billion
Operating income
¥77.7 billion
Main business
Flat glass, automotive glass,
display glass, electronic materials,
chemicals, ceramics
Asia
Number of employees approx. 15,800
Net sales
¥419.1 billion
Operating income
¥56.9 billion
Main business
Flat glass, automotive glass,
display glass, electronic materials,
chemicals, ceramics
North America
Number of employees approx. 4,700
Net sales
¥128.1 billion
Operating income
Main business
¥–4.4 billion
Flat glass, automotive glass,
electronic materials, chemicals
Europe
Number of employees approx. 14,300
Net sales
Operating income
Main business
¥355.3 billion
¥25.7 billion
Flat glass, automotive glass,
chemicals
Italy
● AGC Flat Glass Italia S.r.l
● AGC Automotive Italia S.r.l
Spain
● AGC Flat Glass Iberica S.A.
Germany
● AGC Automotive Germany Gmbh
Hungary
● AGC Automotive Hungary Ltd.
Poland
● AGC Gdansk Sp. z o.o
Turkey
● AGC Automotive Adapazari uretim san, ve tic. A.S.
● Flat glass
● Automotive glass
● Display
● Electronics & Energy
● Chemicals
● Ceramics
● Others
As of end of April 2009, companies such as equity method
affi liates that do not incorporate the “AGC” brand in their names
are included.
AGC Report 2009
19
Sales by region
(consolidated)
Percentage of employees by region
(consolidated)
21%
30%
27%
Europe
North
America
Asia
7%
24%
47%
Europe
Japan
Japan
North
America
Asia
10%
33%
* Year ended December 2008
* Sales and operating income by geographic area are before eliminations, therefore the total amounts of
sales and operating income for geographic areas do not agree with total sales and operating income.
● Asahi Glass Fine Techno Korea Co., Ltd.
● Asahi PD Glass Korea Co., Ltd.
● AGC Display Glass Ochang Co., Ltd.
North America
The United States
● AGC Flat Glass North America, Inc.
● AGC Soda Corporation
● AGC Automotive Americas Co.
● AGC Automotive Americas R&D, Inc.
● AGC Electronics America
● AGC Chemicals Americas, Inc.
● AGC America, Inc.
● AGC Capital, Inc.
● AGC Investment, Inc.
● AGC Holdings America, Inc.
Canada
● AGC Flat Glass North America Ltd.
● AGC Automotive Canada, Inc.
Mexico
● AGC Automotive Glass Mexico, S.A. de C.V.
Europe
Belgium
● AGC Flat Glass Europe S.A.
● AGC Flat Glass Coating
● AGC Flat Glass Roux
● AGC Automotive Europe
● AGC Automotive Belgium
● AGC Europe
Netherlands
● AGC Flat Glass Netherlands B.V.
● AGC Automotive Replacement Glass
Netherlands B.V.
The United Kingdom
● AGC Automotive UK, Ltd.
● AGC Chemicals Europe, Ltd.
Czech Republic
● AGC Flat Glass Czech a.s.
● AGC Automotive Czech a.s.
Russia
●● AGC Bor Glassworks OJSC
● AGC Flat Glass Vostok LLC
● AGC Flat Glass Klin LLC
France
●● AGC France S.A.S.
Outline by Business Segment
Glass Operations
2008 Overview
Share of sales
In the fl at glass business, demand continued to weaken as the economy slowed
down in Western Europe, as well as in fast-growing markets such as Russia during the
fourth quarter. Shipments decreased in Japan as well. In addition, the AGC Group
revised prices in Japan, Asia, and North America, however, this failed to offset all cost
increases. On the other hand, shipments of glass for photovoltaic use remained strong.
In the automotive glass business, sales decreased from the previous year because of
a decline in auto production from the fourth quarter in all regions.
Sales of other glass businesses fell from the previous year.
The appreciation of the yen that developed toward the end of the year was also
one of the factors contributing to the decline in net sales of each operation.
51.1%
Year ended December 2008
Sales to customers
As a result, net sales from the Glass operations for the year decreased 124.7 billion
Net Sales/Operating Income
yen, or 14.4%, from the previous year to 741.3 billion yen, and operating income
decreased 45.0 billion yen or 70.7% to 18.7 billion yen.
Main Products
Flat glass
• Float fl at glass, fi gured glass, polished wired glass, heat-absorbing glass, heat-
refl ective glass, architectural glass, fabricated glass for industrial use, etc.
• Glass for photovoltaic use
Automotive glass
Tempered glass for automobiles, laminated glass for automobiles, etc.
Other glass
Lighting lamp glass products, Industrial glass products, etc.
Net sales
1,000
800
600
400
200
0
Operating income
815.3
866.0
741.3
63.7
46.5
18.7
’06/12
’07/12
’08/12
100
80
60
40
20
0
(billions of yen)
Net sales
Operating income
Electronics and
Display Operations
2008 Overview
Share of sales
25.6%
In the display business, shipments of glass substrates for FPDs signifi cantly increased
in the fi rst half of this fi scal year. However, overall sales for the whole year
decreased from a year earlier, because, due to the operational adjustment at panel
manufacturers, shipments of glass substrates for TFT LCDs decreased in the second
half of the year. And also, overall shipments of display glass sharply declined in the
fourth quarter.
In the electronic materials business, although shipments of photonics components
in particular continued to be steady in the fi rst half of the year, they decreased in the
Year ended December 2008
Sales to customers
fourth quarter. Net sales of the electronic materials business as a whole decreased
Net Sales/Operating Income
from the previous year as a result of the AGC Group’s withdrawal from the business of
small- and medium-sized display panels.
Net sales
Operating income
As a result, net sales from the Electronics and Display operations for the year
decreased 92.5 billion yen or 19.9% from the previous year to 372.7 billion yen, and
operating income increased 8.4 billion yen or 7.1% to 126.6 billion yen.
Main Products
Display
LCD glass substrates, PDP glass substrates, glass bulbs for cathode-ray tubes, etc.
Electronic materials
Glass frit and paste, materials for semiconductor-manufacturing equipment, synthetic
quartz glass, optoelectronics materials, optical fi lters for PDPs, LCD backlight glass
tubes, optical thin fi lm products, etc.
20
AGC Report 2009
400
300
200
100
0
500
476.6
465.2
126.6
118.2 372.7
79.2
’06/12
’07/12
’08/12
(billions of yen)
Net sales
Operating income
150
120
90
60
30
0
Chemicals Operations
Share of sales
2008 Overview
In the chlor-alkali & urethane business, sales of the caustic soda continued to be
steady. Sales of vinyl chloride-related products also remained robust overseas until
the middle of 2008; but demand declined and price weakened in the fourth quarter.
In the fl uorochemicals & specialty chemicals business, demand rapidly declined in the
fourth quarter.
In response to price hikes of raw materials and fuels, the AGC Group revised its
prices of products in both businesses. However, this failed to fully offset the increased
costs.
As a result, net sales from the Chemicals operations for the year decreased 16.2
billion yen or 5.1% from the previous year to 303.1 billion yen, and operating income
decreased 8.6 billion yen or 69.0% to 3.9 billion yen.
Main Products
Chlor-alkali & urethane
Vinyl chloride monomers, caustic soda, urethane materials, etc.
Fluorochemicals & specialty chemicals
Fluoropolymers, fl uorinated gases and solvents, fl uorinated water and oil repellents,
battery materials, iodine-related materials, etc.
20.8%
Year ended December 2008
Sales to customers
Net Sales/Operating Income
Net sales
Operating income
350
300
250
200
150
100
50
0
307.6
319.4
303.1
12.4
7.8
3.9
’06/12
’07/12
’08/12
(billions of yen)
Net sales
Operating income
20
15
10
5
0
Other Operations
2008 Overview
Share of sales
2.5%
In the ceramics business, earnings remained steady thanks to strong demand both in
the glass engineering sector and the environmental energy sector.
As a result, net sales from the Other operations for the year increased 8.9 billion
yen or 10.2% from the previous year to 96.6 billion yen, and operating income
increased 1.8 billion yen or 57.4% to 5.0 billion yen.
Main Products
Ceramics products, etc.
Year ended December 2008
Sales to customers
Net Sales/Operating Income
Net sales
100
80
60
40
20
0
Operating income
96.6 5.0
84.1
87.6
3.3
3.2
’06/12
’07/12
’08/12
5
4
3
2
1
0
(billions of yen)
Net sales
Operating income
AGC Report 2009
21
Business Overview
Glass Operations
Glass Pyramid, Moerenuma Park (Photo by Shinkenchiku-sha)
As part of our business foundation, we constantly strive to
meet customer needs for superior performance by providing
an extensive line-up of products, with a leading global share.
Glass Operations covers businesses with focus on fl at glass and its
G
Global market ranking*
use in architectural, automotive, and solar (photovoltaic) fi elds
and maintains a leading share in these fi elds on a global basis.
The architectural fl at glass business is operated on a regional
basis, with regions devising their respective product line-ups
matching the particular characteristics of their respective
geographic regions. The automotive glass business is characterized
by global scale and operation, in line with the requirements of an
automotive industry that operates on a global basis.
Flat glass
AGC
No.1
Automotive glass
(new vehicle market)
AGC
No.1
*AGC estimates
Low-E double-glazed glass featuring high insulation
Low-E double-glazed glass is used in Margaret Hall,
Photovoltaic cover glass “Solite™”
and heat-shielding properties
Sagami Women’s University
Safety glass for automobile windshields that will
Tempered glass for automobile side windows,
hold together when shattered
shock-resistant and specially treated to shatter into
granules if broken
22
AGC Report 2009
Flat glass
Automotive glass
Expanding business by promoting enhanced use of
glass for photovoltaic and energy-saving applications
Developing high-value added products and
expanding business in emerging markets
The fl at glass business currently operates approximately 40 fl oat
glass furnaces around the world, supplying a wide variety of glass
products to markets in Europe, North America, Japan and Asia.
It has been actively promoting a higher usage of energy-saving
glass (Low-E double-glazed glass) and glass for photovoltaic use.
The fl at glass business undertakes manufacturing of glass in an
environment-friendly manner through effi cient processes that
have minimal impact on the environment. The fl at glass business
has a well-focused marketing network to promote the use of
glass products matching the local trends and characteristics
of geographic regions. ”Benchmarking” and “Sharing of Best
Practices” are the regular features that are being promoted in the
pursuit of “Continuous Improvement” across the Group.
The automotive glass business operates production in 14
countries, and has R&D centers in three regions: Japan, the United
States and Europe. Through its global network, high-quality
products and services are provided in a timely manner to the
global production bases of automakers. In 2007, the Automotive
Global Training Center opened within the Group’s Aichi Plant.
By raising awareness of the AGC Group’s unique approach to
“monozukuri (quality manufacturing)” around the globe, through
the automotive glass business, we endeavor to become “the most
respected automotive parts supplier in the world.”
Photovoltaic TCO*1 glass substrates
P
A
Automotive Global Training Center
*1 TCO: Transparent Conductive Oxide fi lm
TOPICS
Sale of PairPlus™ Ecoglass*2 for remodeling begins
“PairPlus™” is glass that incorporates an attachment frame into double glazing
so that the unit can be installed in a single glazing sash used in an existing
Coolverre™: contributing to improved
energy-saving performance of automobiles
via glass technology
house. This new glass features high energy-saving performance, which helps
Coolverre™ is an automotive glass that blocks infrared rays (IR) and ultraviolet
improve the energy effi ciency of air conditioning in both summer and winter.
rays (UV). It substantially blocks the median infrared rays that cause the
Compared to a single sheet of glass, its insulation property is three times as
skin to sense frizzling heat from sunbeams, thus dramatically reducing
good, while its heat-shielding is twice as good. PairPlus™ is available in various
the heat and unpleasantness felt by drivers. As a result, time and energy
sizes, including a slim type that ensures smooth operation of screen doors. All
required to lower temperatures by air conditioning is reduced. Coolverre™
product variations meet a 3-star or higher level based on the Grading System
is an innovative thermal insulating laminated glass that realizes less energy
for Energy Saving Building Materials*3.
consumption and improved driving environment in an automobile.
The AGC Group will cater to the needs of the rapidly growing remodeling
Coolverre™ is the fi rst IR-blocking laminated glass in the world that
market, and commit itself to the improvement of the living environment, also
features radio wave transmission, and it can be utilized with sensor devices
contributing to the global environment at the same time, by enhancing the
that use antennas and radio waves.
effi ciency of glass through the development of various new products.
*2 Ecoglass is the trade name for low-emissive double-glazing products approved by the
Flat Glass Manufacturers Association of Japan (including AGC).
*3 Grading System for Energy Saving
Building Materials
An indicator of providing product
quality information in relation to
thermal insulation of individual
windows, glass and sashes, in
accordance with the Grading System
Glass
for Energy Saving Building Materials
under the Energy Conservation Act
(Act on the Rational Use of Energy).
Stars are used to rate glass energy-
Glazing beads
incorporated into
the attachment
saving materials based on their JIS
Existing sash
thermal insulation performance
ratings. A greater number of stars
indicates higher thermal insulation
performance.
Normal windshields
Glass that blocks ultraviolet rays (UV)
and infrared rays (IR)
™
UV
Glass
IR
(causes the
skin to sense
frizzling
heat)
Interlayer fi lm
Interlayer fi lm + IR absorbent
The structure of “PairPlusTM”
Comparison between normal windshields and CoolverreTM
AGC Report 2009
23
Business Overview
Electronics and
Display Operations
We supply materials that are indispensable in numerous
industries, and support the advancement of displays and
other devices.
Electronics and Display Operations covers businesses with focus on
G
Global market ranking*
“display” and “electronic materials.” The display business offers
Glass substrates for TFT LCDs
Glass substrates for PDPs
glass for all major types of displays, including thin fi lm transistor
liquid crystal displays (TFT LCDs) and plasma display panels (PDPs),
and enjoys a leading share of the global market in this area. The
electronic materials business deals with the areas, such as the
technologies supporting the information and communications
industry and fuel cells, which are expected to grow remarkably in
the years ahead.
AGC
No.2
AGC
No.1
No.1
*AGC estimates
Glass substrates for PDPs
Glass substrates for TFT LCDs
Synthetic quartz glass
Optical planar devices
LCD backlight tubes
Micro glass lenses
24
AGC Report 2009
Display
Electronic materials
Providing high-added value products through
production processes with reduced
environmental burden
The AGC Group manufactures glass substrates for various types
of displays, including thin fi lm transistor liquid crystal displays
(TFT LCDs), the current mainstream elements for LCD televisions,
and plasma display panels (PDPs), as well as display glass for
cathode ray tubes (CRTs). The AGC Group will develop and offer
products with high added value by responding to various market
trends that include the shift from CRTs to fl at panel displays
(FPDs) in addition to increasingly larger-sized LCD panels. The
Group will also continue to improve its production system and
enhance the productivity of existing facilities, as well as develop
new production facilities.
Creation of new businesses through promotion of
speedy development
The AGC Group is targeting electronics and energy fi elds,
focusing on the sectors of “semiconductor process materials,”
“display materials,” “photonics components,” “storage
materials,” and “energy materials” to cultivate this business
as next-generation growth pillars. The Group will endeavor to
create new businesses by reinforcing its production technologies
to provide high-added value products utilizing our strength of
integrated production starting from raw materials and through
the promotion of R&D in growth areas such as optical planar
devices, micro glass lenses for digital cameras and mobile
phones.
T
The structure of LCD
T
The structure of hard disk drive
Backlight tubes
Polarizer
Color filter
Liquid crystal
Glass substrates
Magnetic recording film
Magnetic head
Swing arm
Glass substrates for hard disk drive
Magnetic disks used to record
information on personal computers
are made by forming a film of
magnetic material on a glass
substrate. A high degree of precision
is required for this glass substrate, as
even a microscopic irregularity will
affect the forming of the film.
TOPICS
Acquisition of a Korean company engaged in
polishing large glass substrates for TFT LCDs
Development of a new photosensitive
insulating fi lm for manufacturing of
semiconductor devices
In 2008, the AGC Group acquired a wholly owned Korean subsidiary of
The AGC Group successfully developed a new photosensitive insulating
Germany’s SCHOTT AG that engaged in polishing large glass substrates for
fi lm that makes use of fl uorine chemistry, one of AGC’s core technologies.
TFT LCDs, and established a new company, AGC Display Glass Ochang Co.,
The main target application of the new photosensitive insulating fi lm
Ltd. As the new company offers an ideal location for the AGC Group to
(product name: AL-Polymer X2000 Series) is for multilayer interconnection
respond to the growing market demand for TFT LCD glass substrates, the
of semiconductor devices, which are becoming increasingly fast and
Group positions AGC Display Glass Ochang as the second production base in
miniaturized.
Korea, following Asahi Glass Fine Techno Korea Co., Ltd., and will establish a
The new product satisfi es the required performances, such as low-
more fl exible production structure in the country.
temperature curing, a very low dielectric constant and loss, as well as high
The Group will continue to expand facilities as necessary, while giving full
fl exibility, and thus facilitates multilayer interconnection.
consideration to trends in demand for glass substrates as well as an increase
in production capacity at its existing manufacturing facilities in Japan, South
Korea and Taiwan, and will also stably supply products that meet the needs
of customers by leveraging its strengths to the utmost in the fl oat production
method and technologies for polishing large glass substrates.
Passivation
AL-X2000
Pad
Circuit component
Pin
Metal wiring
Rewiring layer
AGC Report 2009
25
Business Overview
Chemicals
Operations and
Other Operations
We provide a wide selection of materials extending from
basic chemicals to high-performance chemicals.
Chemicals Operations conducts businesses with focus on
G
Global market ranking*
“chlor-alkali & urethane” and “fl uorochemicals & specialty
Fluoropolymers (ETFE)
chemicals,” and it enjoys a leading global share in
fl uoropolymers (ETFE) for highly functional fl uoropolymer
fi lms and other essential applications.
Other operations include ceramics, logistics and
engineering businesses.
No.1
AGC
No.2
*AGC estimates
CYTOP™ transparent fl uoropolymers for pellicle
Akashi Bridge treated with highly weather-resistant
Asahi Guard™ fl uorinated water and oil repellents
coating in semiconductor applications
Lumifl on™ fl uoropolymer coating
for coating
Flemion™ ion-exchange membranes
AFLAS™ fl uoroelastomers
Ceramics sputtering target
26
AGC Report 2009
Chemicals Operations and Other Operations
Fulfi lling the latest needs through chemical
technologies: extensive operations in ceramics,
logistics and engineering
■ Chemicals Operations
The AGC Group’s Chemicals Operation was originally established
to internally supply soda ash needed to manufacture fl at glass.
During the intervening years, the Group has utilized chlorine, a
byproduct of the caustic soda production process, to develop
numerous value-added products, including fl uorinated products,
which in turn has propelled the expansion of our business
domains. The AGC Group carries out integrated manufacturing
of products, ranging from basic chemicals to high-performance
chemicals. From raw materials to end products, throughout
the entire manufacturing process, the Group makes efforts to
produce products in an environmentally-friendly manner.
The AGC Group provides a broad range of products, from
basic chemicals such as caustic soda to high-performance
chemicals such as fl uoropolymer fi lms. The “chlor-alkali &
urethane business” offers such chlor-alkali products as caustic
soda and vinyl chloride monomer, as well as urethane-related
products centering on polyols. Meanwhile, the “fl uorochemicals
& specialty chemicals business” offers fl uorochemicals, mainly
fl uoropolymers, fl uoropolymer fi lms, fl uorinated water and oil
repellents, gases and solvents, as well as such specialty products
as battery materials, liquid crystal materials and fi ne silica.
■ Other Operations
The Other Operations are composed of the ceramics business
and a host of service-related businesses that include logistics
and engineering.
C
Crude salt is the raw material of
basic chemicals, which in turn
b
leads to the development of
performance chemicals
F-Clean™, a high-performance
F
fl uoropolymer fi lm with
fl
additional functions for
greenhouse coverings
Roiceram™-C fi ne ceramics
R
(silicon carbide)
(
TOPICS
Developing Fluon® PTFE E-SERIES without using PFOA as polymerization surfactant
Polytetrafl uoroethylene (PTFE) products are used in various applications,
including coating cooking pans as well as electric wires used for precision
electronic devices. Traditionally, perfl uorooctanoic acid (PFOA) has been
widely used worldwide as a polymerization surfactant for PTFE products,
due to its high chemical stability and cost effectiveness. However, there have
been concerns expressed about the persistence in the environment of some
fl uorochemicals, including PFOA. Therefore, in 2006, the US Environmental
Protection Agency (USEPA) initiated a program to reduce PFOA contents in
products by 95% by 2010 and to zero by 2015. Since then, the Agency has
been asking manufacturers of fl uorinated chemicals around the world to
participate in the program.
In response, AGC Chemicals Company embarked on the development
of a surfactant that did not contain PFOA*, capitalizing on its proprietary
fl uorination technology. As a result, in September 2008, we released the
Fluon® PTFE E-SERIES as a PFOA-free, environmentally friendly fl uorinated
resin. Within 2010, we will make all our PTFE products PFOA-free.
* At or above the detection limit
Products using Fluon® PTFE
AGC Report 2009
27
AGC Group’s CSR
For the AGC Group, the pursuit of its group vision
represents the fulfi llment of its CSR. We regard
it our mission to
to make the world a brighter place.
In accomplishing this mission, all employees of the AGC Group are encouraged to take action based on the Group’s
shared values of “Innovation & Operational Excellence,” “Diversity,” “Environment,” and “Integrity.” We would
thereby like to achieve sustainable growth as a socially trusted corporate group. As a declaration of our commitment
to achieving this target, we have formulated the AGC Group Charter of Corporate Behavior, as shown below.
AGC Group Charter of Corporate Behavior (Established on June 1, 2007)
AGC Group Charter of Corporate Behavior
The AGC Group strives to be a company trusted by all its stakeholders, a company that meets the expectations of the
world business community to grow and develop responsibly, and a company that significantly contributes to a healthier
global society. We in the AGC Group will achieve these goals by practicing the following principles that are based on our
shared values of .
■ Integrity: Sincere Behavior
1. The AGC Group will develop and provide useful goods and services of superior quality, while giving due consideration to safety
and the environment, and will strive for customer satisfaction and loyalty.
2. The AGC Group will understand and comply with applicable laws and regulations in the countries in which it does business.
3. The AGC Group will promote fair trade and conduct its operations in accordance with the principle of fair competition and all
applicable laws and regulations. The Group will support the development of appropriate competition laws.
4. The AGC Group will maintain sound relationships with government agencies and other responsible organizations. The Group will
not support organizations that threaten the order and security of society.
5. The AGC Group will properly manage and safeguard its own proprietary information, intellectual property, and other assets and
will respect the property rights and interests of its customers and other business partners.
■ Environment and Safety: With Due Consideration
6. The AGC Group regards environmental conservation as an essential responsibility of global citizens and will proactively contribute
to the development of a sustainable society.
7. The AGC Group will seek to implement technological innovations and new product developments that reflect due consideration
for the environment and will participate in ongoing activities to preserve the environment and safety and security at work.
8. The AGC Group will maintain its workplaces with a proper regard to occupational health and safety for the people related to the
business activities of the Group.
■ Diversity: Respect for People
9. The AGC Group will respect cultural diversity in race, ethnicity, religion, language, gender, and background.
10. The AGC Group will respect people’s diverse capabilities and personal dignity in the Group’s business activities and will create fair
and open environments at its workplaces without discrimination.
11. The AGC Group will not engage in forced labor or child labor and will not tolerate infringements of human rights.
■ Harmony with Society: From “Responsibility” to “Reliability”
12. The AGC Group will strive to be a trusted corporate citizen, fulfilling its responsibilities to the communities in which it does
business.
13. The AGC Group will build productive and proper relationships with business partners and encourage them to adhere to business
principles consistent with its own.
14. The AGC Group will communicate responsibly with customers, local citizens, shareholders, and other members of society by
disclosing information in a fair and appropriate manner.
The management of all AGC Group companies, recognizing that it is their responsibility to realize the spirit of this
Charter, will take the initiative to achieve an understanding of the Charter within all Group companies and the companies
with which they do business. We will pay attention to the voices of our stakeholders, both internal and external, and
promote the development and implementation of systems that will enhance ethical corporate behavior under the
vision .
In the case of any behavior contrary to the principles of this Charter, we will work to identify the cause and prevent a
recurrence, making it clear to those inside and outside Group companies that the situation is being addressed diligently.
We will take appropriate corrective and disciplinary actions when necessary.
28
AGC Report 2009
CSR Activities based on
“AGC Group Charter of Corporate Behavior”
n Integrity: Sincere Behavior
Compliance
The AGC Group is committed to increasing the fairness and transparency of its business operations, regarding strict compliance as
the basis for Our Shared Value, Integrity, and as a premise for its sustainability as a corporate citizen.
Quality and Customer Satisfaction (CS)
The AGC Group is committed to improving quality in every aspect of its business operations by implementing process reform to
improve the quality of its products and services in order to increase customer satisfaction and by changing employee’s ways of
thinking based on the idea of incorporating the concept of CS into each employee’s daily work processes.
n Environment and Safety: With Due Consideration
Environmental Activities
The AGC Group, being fully aware of the high environmental impact of its operations, regards the environment as one of its most
important management priorities, and all Group companies are committed to contributing to developing a sustainable society.
Occupational Health & Safety
Based on the management’s principle that “no production should be operated without assurance of safety,” the AGC Group is
ensuring occupational health and safety at its production sites by applying its Occupational Health & Safety Management System
(OHSMS) and securing the equipment’s safety.
Industrial Safety & Security
The AGC Group has been implementing measures to minimize the damage caused by accidents. Specifically, we are trying
to prevent contingencies (accidents and natural disasters) and to promptly and appropriately take action in the case of actual
occurrence.
n Diversity: Respect for People
Employee Satisfaction (ES): Employee Job Satisfaction and Pride in Accomplishment
The AGC Group relies on the capabilities of its employees as a basis of increasing its corporate value and improves its work
environment to enable all the employees to work with satisfaction and pride in their daily operations and to share mutual respect
based on the value of diversity.
n Harmony with Society: From “Responsibility” to “Reliability”
Community Relations
The AGC Group is engaged in a variety of community relations, including support of academic and research activities and education
as well as community activities in Japan and overseas with the aim of contributing to further enhancing a healthier society as a
responsible corporate citizen.
Communication
The AGC Group actively and appropriately discloses its corporate information in a timely manner so as to maintain sufficient
communication with its stakeholders. Such frequent communication helps us incorporate their opinions and requests into our CSR-
related activities and achieve their understanding and support of our activities.
For more details,
see
AGC Group
CSR Report 2009
Asahi Glass CSR Website
http://www.agc.co.jp/english/csr/
AGC Report 2009
29
Corporate Governance, Internal Control and Risk Management
■ Corporate Governance
As its basic policy on corporate governance, Asahi Glass clearly
separates the functions of “oversight” and “execution” of
management, aiming to reinforce the management oversight
function while ensuring quick decision making in management
execution. Under this basic policy, we have implemented various
measures to improve our corporate governance system, including
the appointment of outside directors, the adoption of an executive
offi cer system, and the establishment of a non-statutory Nominating
Committee and a Compensation Committee.
As part of our efforts regarding corporate governance, we
have decided to revise the directors’ compensation system in
view of discussions by the Compensation Committee and the
Board of Directors in March 2007. We abolished the retirement
benefi t program for directors and introduced stock compensation-
type stock options to share the benefi ts and risks related to stock
price fl uctuations with shareholders. Furthermore, regarding top
management, we decided to establish the positions of “Chairman &
CEO” and “President & COO” in 2008, together with reinforcing the
Group’s strategic planning capabilities and enhancing effi ciency and
acceleration of all aspects of business execution. By implementing
these measures, we continue to enhance our corporate governance.
General meeting of shareholders
Board of Directors: 7 directors
(including 3 outside directors)
Nominating Committee: 5 directors
(including 3 outside directors)
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Corporate Auditors:
4 auditors
(including 3 outside
corporate auditors)
Independent Accountants
Chairman & CEO
President & COO
CFO (Senior Executive Vice President)
CTO (Senior Executive Officer)
Executive Officers
Management Committee
CSR Committee
Internal Audit Office
Group Corporate
Compensation Committee: 5 directors
(including 3 outside directors)
Compliance Committee
Fair Trade Committee
Information Management Council
Export Compliance Control Directorate
Corporate Environment &
Safety Directorate
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In-House Companies/Strategic Business Units (SBUs)*1
*1 In-House Companies are business units that operate globally, generally with net sales of over 200 billion yen. Business units with smaller scales are
categorized as Strategic Business Units (SBUs).
■ CSR Promotion System
The AGC Group established its CSR Committee in 2005. This
Committee, which serves as an in-house organization to fulfi ll CSR
by the Group, is chaired by the President & COO and composed of
the CFO, CTO, and the heads of the In-House Companies and SBUs.
It discusses the Group’s CSR-related policies and issues. Moreover,
we hold monthly meetings of the staff members actually engaged
in CSR at each organization, where attendees discuss the measures
needed to solve specifi c issues.
■ Internal Control
Asahi Glass decided on its basic policy over internal control at the
Board of Directors meeting held in May 2006. Subsequently, we
partially revised the policy refl ecting the changes of our situation,
including the establishment of the AGC Group Code of Conduct in
October 2008.
The items for basic policy for internal control
(1) Compliance program
(2) Information retention and management system
(3) Risk management system
(4) System to ensure effi cient and effective
business execution
(5) System for management of group companies
(6) Matters regarding auditors
■ Internal Control over
Financial Reporting
As for internal control over fi nancial reporting, we have built up a
mechanism to establish, operate, and assess internal controls pursuant
to the Financial Instruments and Exchange Law, promulgated in June
2006. Using this mechanism, we started the full implementation of
internal control over fi nancial reporting in fi scal 2009.
■ Risk Management
Based on its basic corporate policy over internal control, the AGC
Group makes it a rule to identify important risk factors and report and
examine the state of risk management periodically at the meetings of
the Management Committee and the Board of Directors.
In identifying important risk factors, we conduct questionnaire
surveys across the Group to create a risk map that indicates the
impact and frequency of possible risks, which we use to evaluate
the signifi cance of the risk factors. Then the Management
Committee and the Board of Directors discuss the factors at their
meetings, and the related In-House Companies and SBUs formulate
the action plans to implement the Plan, Do, Check, and Act (PDCA)
cycle for the continuous improvement of their risk management
levels.
Formulation of a business continuity plan (BCP)
Regarding important risk factors, we are implementing measures
to formulate and operate business continuity plans (BCPs) for
large-scale accidents and disasters. Specifi cally, we are taking
countermeasures against earthquakes in Japan (see Topic below)
and new type of pandemic infl uenza*2.
*2 The new type of pandemic infl uenza is a disease caused by fl u viruses from
animals, in particular from birds. The viruses do not usually infect humans, but
some viruses mutate so that they can infect humans, grow in humans, and be
effi ciently passed from human to human.
30
AGC Report 2009
Board of Directors, Corporate Auditors and Executive Offi cers
■ Board of Directors
Masahiro Kadomatsu
Representative Director
Chairman of the Board
Chairman & CEO
Kazuhiko Ishimura
Representative Director
President & COO
Takashi Matsuzawa
Representative Director
Senior Executive Vice
President & CFO
Katsuhisa Kato
Director
Senior Executive Offi cer & CTO
Kunihiro Matsuo
Director (Outside)
Attorney At Law,
Kunihiro Matsuo Law Offi ce
Hajime Sawabe
Director (Outside)
Representative Director
Chairman,
TDK Corporation
■ Executive Offi cers
Masahiro Kadomatsu
Chairman & CEO
Shukichi Umemoto
GM of Finance & Control Offi ce
Yasutoshi Hirata
GM of Human Resources &
Administration Offi ce
■ Executive Offi cers
Tetsuji Kakimoto
Technical Director of Japan/Asia Pacifi c,
Glass Company
Masafumi Ohinata
GM of Electronics General Div.,
Electronics Company
Yasumasa Nakao
Leader of Global Technology Promotion &
Integration Project
Marehisa Ishiko
Regional President of Japan/Asia Pacifi c,
Glass Company
Yoshiaki Tamura
GM of Display General Div.,
Electronics Company
Jean-François Heris
Regional President of Europe,
Glass Company, and President & CEO of
AGC Flat Glass Europe S.A.
Toru Nagashima
Director (Outside)
Chairman of the Board,
Teijin Limited
■ Corporate
Auditors
Takashi Terashima
Izumi Tamai
(Outside)
Kozo Tsukagoshi
(Outside)
Koji Ogaki
(Outside)
Masayuki Kamiya
Vice President, Planning and Coordination,
Glass Company
Shinichi Kawakami
Deputy GM of Human Resources &
Administration Offi ce
Eiichi Kudo
GM of CSR Offi ce
Takashi Fujino
GM of Corporate Planning
Toru Kawatsura
Assistant to President of Glass Company
Nozomu Taguchi
GM of Electronic Glass General Div.,
Electronics Company
Takuya Shimamura
GM of Planning & Coordination Offi ce,
Chemicals Company
Tetsuo Tatsuno
Deputy GM of Finance & Control Offi ce
Satoshi Kamata
GM of Business Management General Div.,
Chemicals Company
Tadayuki Oi
Vice President, Technology,
Glass Company
(Abbreviation)
“GM”: General Manager
On July 21, 2009
AGC Report 2009
31
Kazuhiko Ishimura
President & COO
■ Senior Executive Vice
Presidents
Takashi Wada
President of Glass Company
Takashi Matsuzawa
CFO
Yuji Nishimi
President of Electronics Company
■ Executive Vice President
Akio Endo
Deputy President of Glass Company
■ Senior Executive Offi cers
Michiyoshi Kaino
President of Chemicals Company
Kei Yonamoto
Vice President, Automotive,
Glass Company
Katsuhisa Kato
CTO
Akira Toyama
GM of Research Center
AGC Milestones 1907–2009
1907
■ Asahi Glass Company founded in Amagasaki, Hyogo Pref.
1954
1950
■ Asahi Glass Company incorporated.
1925
■ Shoko Glass Co., Ltd. established in China.
■ Asahi Special Glass Co. established to
manufacture glass bulbs for TV CRTs.
1956
■ Asahi Processed Glass Co. established
and manufacture of automotive glass
begins.
■ The Indo-Asahi Glass Co., Ltd.
established in India.
1907-1949 The Early Years
1950-2001 Era of Growth and Expansion
1954
■ Production of double-glazing units
begins.
1938
■ Production of tempered glass and
laminated glass begins.
1933
■ Caustic soda production using lime process begins.
1928
■ Production of ordinary sheet glass using Fourcault
process begins.
1917
■ Japan’s first soda ash produced using ammonium method.
1909
■ Production of Belgian-type hand-blown sheet glass,
the first sheet glass successfully manufactured in Japan, begins.
32
AGC Report 2009
1966
■ Production of float glass
begins.
1961
■ Asahi Glass moves into organic
chemicals, manufacturing
propylene oxide and propylene
glycol.
2002
■ Glaverbel made into a wholly owned subsidiary.
■ AGC Group Vision formulated.
Global In-House Company System introduced.
2004
■ management policy introduced.
2005
■ Electronics & Energy General Division newly established.
1981
■ Asahi Glass acquires Glaverbel S.A.
glass company in Belgium.
1991
■ Asahi Glass Foundation creates
the “Blue Planet Prize” to
honor those who help solve
environmental problems.
1992
■ AFG Industries, Inc. of
the U.S.A acquired.
2007
■ Group brand unified as “AGC.”
■ Asahi Glass Company’s 100th anniversary
2008
■ New management policy
introduced.
■ New medium-term management plan
started.
(Renamed from in 2009)
2009
■ Glass Company newly established.
(on July 21, 2009)
■ Electronics Company newly established.
(on July 21, 2009)
2002- Toward Global Management Scheme
1998
■ Mass production of a
new alkali-free glass for
TFT LCDs commenced.
2006
■ Fluon® highly functional ETFE fluoropolymer
film selected for the main stadium and the
venue for aquatics events at the Summer
Games in Beijing.
1990
■ “CYTOP™” transparent
fluoropolymer
developed.
1996
■ Production of “PD200” glass
substrate for plasma display
panels (PDPs) begins.
1985
■ Production of alkali-free glass and synthetic
quartz glass begins.
1980
■ AZEC System of caustic soda manufacturing using
ion-exchange membrane developed.
1975
■ Production of “Asahi Guard™” fluorinated water and oil repellents
and “Aflon COP” fluorinated resins begins.
■ Ion-exchange membrane method for manufacturing caustic soda
developed.
2004
■ Fluon® highly functional ETFE fluoropolymer film utilized
at the Munich stadium, the venue for the opening match
of the football (soccer) world competition in Germany.
AGC Report 2009
33
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About the photographs on the cover:
❶：Naberezhnaya Tower (Russia)
❷：Optical planar devices
❸：Fluon ® ETFE FILM
❹：Automotive glass
❺：TFT LCD glass substrates
❻：Avignon Station (France)
©AGC Flat Glass Europe
AGC Report
2009
ASAHI GLASS CO., LTD.
URL: http://www.agc-group.com
Issued June 2009
*Soy ink is used for this Report
Part of this report (from p. 1 to p. 32) is printed
using “Morino Chonai-Kai Forest Thinning
Support Paper,” realized by a partnership
NPO supporting used paper recycling, and
Iwaizumi city (Iwate pref., Japan), which is
promoting forest restoration.