A
G
C
R
e
p
o
r
t
2
0
1
0
1 2
4
5
3
6
7
8
❶ Fluoropolymer-based plastic optical fiber (FONTEXTM)
❷ TFT LCD glass substrates
❸ Liège-Guillemins Station, Belgium / ©AGC Glass Europe
❹ Automotive glass
❺ Glass substrates for hard disk drive
Author : Fernando Tomás (Zaragoza, Spain)
❻ Fluon® ETFE Film
❼ Solar panels / Spain
*For illustrative purpose only
❼ Synthetic quartz glass
AGC Report
2010
Issued June 2010
*Soy ink is used for
this Report
The paper used for pages 1 to 28 of this report
comes from trees thinned from forests. This
represents the effective use of trees thinned from
forests and should in turn contribute to the
promotion of forest thinning for forest health.
Our Global Brand
is the global brand of the AGC Group, which
conducts business in roughly 30 countries and regions
worldwide. The AGC Group boasts the world’s top-class
technology and leading market shares in business areas
such as glass, electronics and displays, and chemicals.
Under the
brand, our approximately 50,000 em-
ployees work as one and create new values in order to
realize the group vision
.
AGC Report 2010 Contents
2
Top Message
Under the New Medium-Term Management Plan
We will Accelerate the Building of Foundations for Growth.
4 AGC Group Vision
5
6 New Medium-Term Management Plan
Management Policy
Feature: An Important Part of the World We Live In
8
The AGC Group Makes Group-Wide Efforts to Improve the Technology of Solar
Power Generation to Contribute to the Climate Change Issues.
10
LUMIFULONTM Protects the Beauty of the Tokyo Sky Tree, the World’s Tallest
Broadcasting Tower at 634 Meters.
Research & Development
12 Research & Development Creating the Future of the AGC Group
AGC Group Now
14 Corporate Data/Organization Data/Consolidated Financial Highlights
16 AGC Group around the World
18 Outline by Business Segment
20 Business Overview
Glass Operations
Electronics and Display Operations
Chemicals Operations and Other Operations
AGC Group’s CSR
26
27 Corporate Governance / Internal Control / Risk Management
28
Board of Directors, Corporate Auditors and Executive Offi cers
29 Milestones 1907–2010
Communication Tools
The AGC Group promotes communication with stakeholders through various tools.
General corporate activities
“AGC Report”
(This report)
Company brochure and an-
nual report introducing the
AGC Group’s vision as well
as business highlights.
CSR activities
“CSR Report”
Introduces the AGC Group’s
social responsibilities.
Financial information
“Financial Review”
Reports the AGC Group’s
business outline and fi nan-
cial information including a
consolidated fi nancial state-
ment.
Activities of each corporate site
Comprehensive information
“Site Report”
* On sites in Japan only
Website
Introduces the activities conducted at Asahi
Glass plants and major Group companies on
issues such as the environment, work place
safety and health, security and disaster
prevention.
Offers a broad introduction of the AGC Group through timely in-
formation disclosure.
This website offers access to the websites of major group com-
panies.
AGC Group Website
http://www.agc-group.com/
AGC CSR Website
h t t p : / / w w w. a g c . c o . j p /
english/csr/
AGC Investor Relations
Website
h t t p : / / w w w. a g c . c o . j p /
english/ir/
AGC Report 2010
1
Top Message
Under the New Medium-Term Management Plan
We will Accelerate the Building of Foundations for Growth.
For the AGC Group, 2009 was a year for gathering our strength
for the future. To respond swiftly to a rapidly changing business
climate, the AGC Group took measures to streamline its
businesses in all areas ranging from management to operations. In
particular, the AGC Group made every effort to improve profi tability
and asset effi ciency by taking measures such as establishing a
production system that responds to demand trends, improving
productivity by leveraging spare facilities and personnel, and
optimizing cash management. In addition to our own efforts,
the global economy gradually strengthened at the end of 2009,
helping our business to recover. However, the global economic
downturn hastened changes in the market structures, creating a
need for us to accelerate the introduction of measures to cope
with these changes.
Contributing to a Sustainable Society by
Accelerating
Measures
At the time we initially formulated our management policy
, we assumed that climate change and
resource problems would become more serious and our market
structure would change more dramatically with the growing
importance of emerging markets by 2030. In reality, however, the
market structure has been changing faster than expected. In order
to respond to these drastic changes, the AGC Group needs to
accelerate
measures. In addition, we believe
that we must contribute to the creation of a “Sustainable Society”
which, as we realized, is indispensable not only from the viewpoints
of climate change and resource problems but also from a more
comprehensive global viewpoint. Based on this recognition, we
have clearly defi ned our aspirations for 2020 as follows, and set
them as major polices of the AGC Group.
AGC’s Aspirations for 2020
AGC Group aspires to excel as a highly profi table and fast-
growing global enterprise making contributions to a sustainable
society by:
Having strong and differentiated technologies
Giving consideration to environmental friendliness not only
of products but also for overall production processes and
business activities
Contributing to the development of fast-growing regions
•
•
•
2
AGC Report 2010
Building Foundations for Growth to Become a Truly
Leading Global Enterprise
(cid:4) Second round of globalization
– As a global company, we will also contribute to the
To achieve our aspirations for 2020, we will implement measures
growth of emerging regions.
focusing on the following three points.
The AGC Group will further enhance businesses in developed
regions including Japan, Europe and North America and will also
(cid:2) Delivering technology solutions for climate change
expand operations in fast-growing regions. In addition to the areas
– We will give due consideration to the environment in all
where we have already established bases such as China, Russia,
our business operations.
India, and Southeast Asia, we will take on the challenge of starting
Although climate change is a serious issue that could threaten
businesses in the countries and regions we have yet to enter and
the business continuity of the AGC Group, it also provides a
will contribute to the development of local communities through
great opportunity for us to contribute to society through our
our business activities. In furthering our business in fast-growing
business. Recognizing our responsibility as a glass manufacturer
regions, we will consider the use of global human resources and
belonging to an industry that consumes great volumes of
the establishment of a business model that differs from those used
energy, we earnestly strive to reduce energy consumption in
in developed regions.
our manufacturing processes. For example, we are developing
technologies that will halve the energy consumption during the
production process. Achieving signifi cant energy-savings through
Bringing Our People and Organization Together
under the Slogan of “Our People are Our Strength”
technological innovations can minimize environmental burden and
It is indeed “our people” that actually perform various tasks
drastically reduce costs at the same time. Moreover we are now
necessary to build a growth foundation for the Group, tackling
developing materials and parts for photovoltaic devices which can
problem-solving and any other issues. Recognizing this, we offer
enhance power generation effi ciency and highly energy-saving
suffi cient growth opportunities to employees who have high
glass by taking advantage of our glass, chemical, and ceramics
motivation toward their own growth and are highly committed to
technologies. By promoting these products worldwide, we will
their work. As the staff gain experience through such opportunities,
deliver technology solutions for climate change.
they will be able to tackle more challenging tasks and this in turn
(cid:3) Glass-technology-driven company
will allow them to grow further. In addition, the AGC Group employs
approximately 50,000 employees. One of our strength is that these
– We will meet new needs through our strong and
employees are working in some 30 countries and regions with
differentiated technologies.
different commercial practices and social needs. Each employee
The AGC Group will further differentiate our businesses by refi ning
will adopt and follow the four Shared Values in the Group Vision
our core technologies. For example, we will advance our glass
and fulfi ll their social responsibilities in their
technology to produce high added-value and energy-saving
respective countries and regions, as well as provide products and
glass products. Moreover, by integrating our glass, chemical, and
services with high added value. Through this approach, we are
ceramics technologies in a more proactive manner, we will provide
aiming at becoming a true, leading global company which society
our customers with products of higher value.
expects further growth.
Kazuhiko Ishimura
President & CEO
AGC Report 2010
3
AGC Group Vision
Through unceasing reform and innovation, we will accelerate growth under unifi ed 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, fl uorine chemistry
and their related fi elds, 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 effi ciency 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.
Innovation & Operational Excellence
Diversity
Integrity
Environment
4
AGC Report 2010
Management Policy
The AGC Group will closely look at mid- to long-term changes in the market and respond to them
in a timely manner to continue to grow further as a leading global company. 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.
Accelerating
Measures
To address such signifi cant structural changes in the market, the
AGC Group believes that we must contribute to the creation of a
“Sustainable Society” which, as we realized, is indispensable from
a comprehensive global viewpoint.
The AGC Group has clearly defi ned “Aspirations for 2020” as its
future image. By using it as a powerful guideline, we will accelerate
our
measures.
AGC’s Aspirations for 2020
AGC Group aspires to excel as a highly profitable and fast-growing global
enterprise making contributions to a sustainable society by:
•
•
Having strong and differentiated technologies
Giving consideration to environmental friendliness not only of products but
also for overall production processes and business activities
Contributing to the development of fast-growing regions
•
AGC’s Aspirations for 2020
Second Round of Globalization
Build Foundations for Growth
Build Foundations for Growth
Build foundations for the growth of the AGC Group,
Build foundations for the growth of the AGC Group,
looking at medium- and long-term
looking at medium- and long-term
structural changes in the global market.
structural changes in the global market.
Delivering Technology
Solutions for Climate Change
Glass-Technology-Driven
Company
Embed the “JIKKO” mindset as the AGC Group’s DNA
Our People are Our Strength – Realize the full potential of our people
Aiming to meet “Aspirations for 2020,” we will work on building
foundations for growth from three perspectives: “glass-technology-
driven company,” “delivering technology solutions for climate
change” and “second round of globalization.”
Specifi cally, to become a glass-technology-driven company,
the Group will advance our glass technologies, as well as
promote business differentiation by integrating the Group’s core
technologies in glass, chemicals, and ceramics. In addition, the
Group will deliver technological solutions for climate change by
achieving energy conservation in production processes and
providing products based on our core technologies. Besides, the
Group will push forward with a second round of globalization by
proactively expanding business in emerging markets, while further
enhancing profi tability in the mature markets of Japan, Europe,
and North America.
In order to build the foundations for growth, we will fi rmly
establish and thoroughly imbue the mindset of the former
management policy “JIKKO” as the DNA of the AGC Group.
And, placing importance on “our people” who actually carry out all
the work, we set the slogan “Our People are Our Strength.” Under
this slogan, the AGC Group aims to become a corporate group in
which each employee exerts their full potential, and the growth of
the people and the growth of the organization can nourish each
other in a virtuous cycle.
AGC Report 2010
5
New Medium-Term Management Plan
“Grow Beyond-2012”
The AGC Group has announced the establishment of a new medium-term management plan (MTP) for the Group
entitled
ized during the Group’s
for the fi scal years 2010 to 2012. This follows the foundations for growth real-
MTP. Both MTPs derive from the Group’s management policy
MTP refl ects the Group’s confi dence that
. The adoption of this new
it has completed the reforms necessary to cope with the rapid and signifi cant change in its business environment
and embodies a confi dence that the worst of declines are past in the world economy.
Tasks in
Under our new medium-term management plan,
, the AGC Group regards the next three years to be a
period for ensuring growth.
The fi rst task of
is a full-fl edged
recovery of the company performance. The Group aims to attain
the highest level of business performance, and by leveraging the
cash fl ows generated through optimum performance, we will
measures and ensuring our
proceed with the
fi nancial strength at the same time.
The second task is accelerating
measures.
The Group will promote measures to build a foundation for growth
by focusing on the following three themes using the Group’s core
technologies in glass, chemicals, and ceramics: “glass-technology-
driven company”; “delivering technology solutions for climate
change”; and engaging in a “second round of globalization.”
Investment Plan and Financial
Targets
To address those tasks, the AGC Group plans to make capital
expenditures totaling 450.0 billion yen over three years. In addition,
the Group will proactively examine the possibility for investments
and loans for M&A activities and strategic business alliances.
Further, we will allocate 150.0 billion yen (three year total) to R&D
activities with the particular focus on the development of energy-
related businesses and electronic materials.
•
•
Investment Plan
Capital expenditure: 450.0 billion yen (total for three years)
In addition to capital expenditure, the Group will proactively
examine the possibility for M&As and strategic business
alliances.
•
R&D expenses: 150.0 billion yen (total for three years)
R&D
Tasks in
•
•
Achieve full-fl edged recovery of the company performance
Accelerate
measures
Through these efforts, the AGC Group aims at achieving ROE
(Return on Equity) of 12% or more and a D/E ratio (Debt/Equity
ratio) of 0.5 or less.
Financial targets
•
•
ROE of 12% or more
D/E ratio of 0.5 or less
Group Vision and Management Policy, New Medium-Term Management Plan
2012
2011
2006
2009
2010
2007
2008
Group Vision
Management Policy
Execution for Excellence
Action Plan
(Medium-Term Management Plan)
Start afresh under a new structure
6
AGC Report 2010
Principal Measures of
by Business
Glass Business
The AGC Group aims at continuing to be a global leader by maintaining
a solid presence in developed countries and by aggressively
expanding business in emerging countries.
The AGC Group considers that demand for both architectural and
automotive glass bottomed out in 2009 and will recover with the growth
of emerging markets such as China, but recovery in developed countries
will be slow.
Given such an environment, the AGC Group will enhance its cost
competitiveness by radically improving productivity and production
yields, while continuing to adjust the capacity utilization rate of its
facilities in response to the demand. We will promote development and
production of high added-value products such as solar products, and
press ahead with developing and expanding sales of eco-friendly glass
products that meet the needs of each region.
Solar-related Business
We will make concerted efforts throughout the Group to develop,
manufacture, and sell solar-related components.
concentrating solar power generation systems is also expected to
expand rapidly.
While growth of the solar power market slowed slightly due to
the infl uence of the economic crisis, it is getting back on track for
strong growth. In addition to the solar power market, the market for
In these markets, the AGC Group will work to develop, manufacture,
and sell not only glass but also solar-related components, using the
Group’s technologies in glass, chemicals, and ceramics.
Electronics and Display Business
In the display business, the AGC Group will build a fl exible production
system.
The AGC Group will respond to the FPD market, which is expected
to grow at an annual average rate of 10% or more, by increasing
productivity and production yields of existing facilities and making new
investments. In addition, we will respond to the expanding production
of FPD panels in China.
In the electronics materials business, we will focus further on building
mass-production
increasing productivity and
production yields.
technology and
The semiconductor-related market is considered to have bottomed
out in 2009 and is currently heading toward recovery. The personal
computer (PC) market is expected to continue growing at an annual
average rate on the order of 10%. In response to growth in these
markets, we will strive to develop mass-production technologies and
increase productivity and production yields.
We will accelerate releases of new products by capitalizing on our
marketing and development capabilities.
We will accelerate releases of new products in such fi elds as
energy, display, semiconductor/electronic components, and lighting
by differentiating our products with our special glass and chemicals
technologies, and proactively capturing needs for glass, which are
diversifying and growing at an accelerating pace.
Chemicals Business
The AGC Group will strengthen its business competitiveness by
improving productivity, such as by consolidating production bases for
intermediate fl uorine materials, and taking other measures.
In addition, the Group will focus on expanding sales of products
in environment- and energy-related markets including solar-related
components, fl uorochemicals, and urethane products that have smaller
effects on the environment.
In Asia, we will enhance the capacities of facilities for basic chemicals
by capturing market growth and boost sales of fl uorine chemicals that
meet the needs of emerging markets.
Ceramics Business
Taking advantage of possessing the ceramics technologies, the AGC
Group will contribute to the development of glass-related businesses
by extending the operating lives of facilities, differentiating products
through higher quality, and developing furnace materials that improve
production yields.
The Group will also focus on expanding sales in the environment and
energy fi elds, including solar-related components.
AGC Report 2010
7
Feature1An Important Part of the World We Live In
The AGC Group Makes Group-Wide
Efforts to Improve the Technology of
Solar Power Generation to Contribute to
the Climate Change Issues.
*For illustrative
purpose only
8
8
AGC Report 2010
AGC Report 2010
Products that reduce
solar power generation
costs
Improving power generation effi ciency
Photovoltaic cover glass
Photovoltaic cover glass is designed to
cover the light-receiving surface of a pho-
tovoltaic module. Our products use high
transmittance glass so that the sunlight
of the entire spectrum can be effi ciently
captured into the photovoltaic cell layer.
We also offer cover glass with antirefl ec-
tion coating on the surface to boost the
transmittance.
Improving power generation effi ciency
Glass substrates with TCO fi lm for thin-
fi lm silicon photovoltaic module
In a thin-fi lm silicon photovoltaic module,
glass substrates coated with TCO fi lm
serve as the light-receiving electrodes and
have both the function to effi ciently capture
effective wavelength light into photovoltaic
cells as well as the function to work as
conductor to effi ciently bring out generated
electrical energy. The AGC Group’s Type
HU TCO fi lm can effi ciently confi ne light
to the photovoltaic cells due to its high
diffusivity (haze rate) up to 90% of incom-
ing sunlight.
Improving durability
Fluoropolymer fi lm for backing
sheets
AGC’s fl uoropolymer fi lms have excellent
weatherability and they do not deteriorate
even if left outdoors for a long time. This
feature contributes to improving the photo-
voltaic modules’ durability. Another feature
of this product is its light weight, which
helps reduce the weight of photovoltaic
modules.
Improving productivity
Sputtering targets for electrodes
The sputtering targets are used to fabri-
cate TCO fi lms, which are used as elec-
trodes on photovoltaic cells. By stabilizing
electrical discharge during fi lm deposition,
they produce high-quality thin fi lm very
effi ciently.
The AGC Group supplies leading manufacturers of the CSP (Concentrating Solar
Power) system with high transmittance glass and highly refl ective mirrors that maximize
the energy collection of the solar concentrator.
Contributing to improvements of power
generation effi ciency, durability, and
productivity of solar power generation system
Japan and many other countries in the world are actively
promoting the introduction of photovoltaic modules to prevent
climate change. An outstanding feature of photovoltaic modules is
that CO2, which causes global warming, is not emitted during the
power generation process. By reducing power generation costs,
photovoltaic modules are expected to be used more widely in the
world.
In order to reduce power generation costs of photovoltaic
modules, the AGC Group has been developing products
to improve the power generation effi ciency, durability, and
productivity of photovoltaic modules by leveraging its core
technologies in glass, chemicals and ceramics. We provide
“photovoltaic cover glass with antirefl ection coating” and “glass
substrates with transparent conductive oxide (TCO) fi lms” to
improve power generation effi ciency, “fl uoropolymer fi lm for
backing sheets” to improve durability, and “sputtering targets for
electrodes” to improve productivity. In a bid to popularize solar
power generation, we showcased our technologies and products
to reduce power generation costs at the International Photovoltaic
Power Generation Expo (PV EXPO) held in March, 2010.
In addition, we have begun providing “highly refl ective mirrors”
that can concentrate sunlight very effi ciently. We also make a
technological contribution to the wide adoption of solar thermal
power generation, which is expected to be increasingly introduced
in desert areas that enjoy a large amount of direct insolation.
AGC exhibition booth at International Photovoltaic Power Generation Expo (PV EXPO)
held in March, 2010.
AGC Report 2010
AGC Report 2010
9
9
Feature2An Important Part of the World We Live In
LUMIFLONTM Protects the Beauty of
the Tokyo Sky Tree, the World’s Tallest
Broadcasting Tower at 634 Meters.
The Tokyo Sky Tree
The Tokyo Sky Tree is being constructed
in Mukojima in Tokyo’s Sumida Ward as
a new symbol of Tokyo. It is expected to
be used for various purposes including
as a broadcasting tower for terrestrial
digital television and as an observation
tower offering breathtaking sights of
Tokyo from a whole new perspective.
Construction client: Tobu Tower Sky Tree Co., Ltd.;
Constructor: Obayashi Corporation
完成予想図
10
AGC Report 2010
Major examples of
LUMIFLONTM usage
Burj Al Arab
At 321 meters
tall, the Burj Al
Arab is one of
the world’s tallest
as well as most
luxurious hotels.
As a high-
weatherability
fl uoropolymer
for coatings,
LUMIFLON pro-
tects high-rise
buildings from
ultraviolet rays.
Photo by Satoru
Mishima, Nikkei BP
Marunouchi Building
LUMIFLON is also used on buildings in
Marunouchi, one of the main business
districts in Tokyo.
Rainbow Bridge
In harsh natural environments like the sea
surface, LUMIFLON protects the bridge’s
framework from chloride damage and helps
bridges maintain their beauty.
Passenger Aircraft
LUMIFLON is also used in aircraft and helps
maintain high gloss and color.
AGC Report 2010 11
A windmill protected by LUMIFLON
LUMIFLONTM Coating Protects Materials and
Maintains Aesthetic Look
The Tokyo Sky Tree is currently under construction and is
scheduled to be completed in 2011. When completed at a planned
height of 634 meters, it will become the tallest broadcasting tower
in the world. Because the exterior cannot regularly undergo
maintenance, the tower needs a coating with excellent corrosion
resistance and weatherability properties that will not deteriorate
for a long time.
the more
than 20 years since
LUMIFLON is a high-weatherability fl uoropolymer for coatings,
which was developed using the AGC Group’s fl uorochemical
technology. During
its
commercialization in 1982, the material has won trust as a
maintenance-free coating. It also won high praise for its ability
to reduce total volatile organic compound (VOC) emissions over
the long-term. These features led to LUMIFLON being adopted
for The Tokyo Sky Tree. Compared to polyurethane resins, which
need to be reapplied roughly every seven years, coatings using
LUMIFLON need only to be reapplied every 25 years.
LUMIFLON has been adopted in more than 200,000 projects of
large-scale structures such as skyscrapers and bridges over the
ocean as well as aircraft and vehicles, mainly in Japan. In the future,
overseas business is expected to increase as the advantages of
LUMIFLON resins become known.
Testing LUMIFLON’s weatherability on a bridge.
A bridge beam (in its 16th
year) without LUMIFLON
coating
A bridge beam (in its 21st year) with LUMIFLON coating
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 chemistry
and ceramics technologies.
The AGC Group looks at various trends with a long-term vision, sets the direction of our technology
strategy, and is striving to build the foundations for growth set forth in
through sophistication, combination and application of our core
technologies.
Technology Outlook and Technology Roadmap, which
defi ne the direction of technology strategies
In addition to mid- to long-term business strategies, the AGC
Group formulates a Technology Roadmap based on our Technol-
ogy Outlook that looks at various trends with a long-term vision
in areas such as energy, resources and population, and thereby
sets the direction of our global technology strategy.
Various trends
Our direction
Technology Outlook
Long-term macro trends
(global trends)
trends in customers’ industries
Business strategies
Technology Roadmap
Current/new business
domains
Current/new technology
domains
Carrying out seamless operations ranging from basic
research to product development
In R&D, the Research Center handles basic, long-term, innova-
tive, and inter-business themes, while the Production Technology
Center and Engineering Center undertake the development of
innovative production technologies and equipment technologies.
The Development Centers of each In-House Company enhance
production technologies and undertake product development
in close contact with customers. In fi scal 2010, the Production
Technology Center was separated from both the Research Cen-
ter and the Engineering Center in a bid to promote and acceler-
ate “Glass-technology-driven company” as one of the founda-
tions for growth.
Building foundations for growth through sophistication,
combination and application of our core technologies
The AGC Group positions “glass materials and glass production
technologies,” “coating technologies,” “optics and electronics
technologies,” “ceramics material technologies” and “fl uorine
chemistry technologies,” as well as “fundamental common tech-
nologies” that support the above, as its current core technolo-
gies.
Through sophistication, combination and application of our
core technologies, we will work to develop technology for imple-
menting “group-wide promotion of solar business,” “measures
against climate change” and “glass-technology-driven company”
man-
as the foundations for growth set forth in our
agement policy.
Technology strategy
R & D Structure
Foundation/Basic Technology
Materials development:
Research Center
Production technology:
Production Technology Center
Equipment technology:
Engineering Center
n
o
i
t
a
r
o
b
a
l
l
o
C
Commercialization
technology
Enhanced production
technology
Development Centers of
each In-House Company
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
other chemistry
technologies
Fundamental
common
technologies
Glass
materials design
Dry coating
Liquid
crystal materials
Refractory
lining
Glass
manufacturing
Wet coating
Photolithog-
raphy
Fine
ceramics
Glass
forming and
processing
Patterning
Assembly
Fluorine
chemistry
Electro-
chemistry
Equipment
Sensing
Inorganic
materials
Evaluation
and analysis
Optical
design
Nanomaterials
Simulation
Group-wide
promotion of solar
business
◎
Glass-
technology-driven
company
◎
◎
○
Measures against
climate change
◎
◎
○
○
○
○
◎
◎
◎
○
○
◎
○
○
12 AGC Report 2010
E
F
D
A Micro glass lenses
B Jigs for manufacturing semiconductors (Silicon carbide)
C TFT LCD glass substrates
D Plasma in an in-fl ight melting furnace
E Ceramics sputtering target
F Fluorinated water/oil-repellent coating material
B
C
A
Foundations for growth
: Future business domains
Group-wide promotion of solar business
Improving the effi ciency of solar power
generation
Glass substrates with TCO fi lm for thin-fi lm silicon photovoltaic
module
This film scatters light by means of their surface concavoconvex
texture, to conduct more light into the photovoltaic layer for higher
power generation effi ciency.
Glass mirrors for solar thermal generation
We provide high transmittance glass and highly reflective mirrors
that maximize the energy refl ectance of solar concentrators for solar
thermal power generation system.
Glass-technology-driven company
Photovoltaic cover glass
Concentrating solar thermal power
generation system (highly refl ective mirror)
Improving the energy effi ciency of the glass production process
Total Oxygen Combustion Method
By sending only oxygen to a glass
melting furnace, it will reduce nitrogen
oxide emissions and improve energy
effi ciency.
In-fl ight melting technology
Granulated raw material mixtures
a re i n j e c t e d i n t o a f u r n a c e a n d
i n s t a n t a n e o u s l y m e l t e d b y a
combustion flame or plasma. This
technology will enable halving CO2
emissions and energy consumption
during the production process.
Raw
materials
Conventional furnace
Combustion burner
Melting
In-flight melting furnace
Granulated raw materials
Raw
materials
High-speed
refining
i
h
g
H
/
g
n
i
t
l
e
m
t
h
g
i
l
f
-
n
g
n
i
r
r
i
t
s
d
e
e
p
s
Measures against climate change
Refining
To forming process
I
To forming process
CO2 recycling in the glass production
process
Creating soda ash (a material
used mainly for glass
products) from CO2 in the
production process
Exhaust gas
CO2
Electrolysis
Injection
Environmentally friendly products
Architectural glass (improves air conditioning effi ciency)
Automotive glass (improves fuel effi ciency, responds to
Eco-Cars)
Chemicals recycling (collection and decomposition of
greenhouse gasses)
Reducing the
environmental impact of
fl uorinated products
Coolants with zero ODP (Ozone Depletion
Potential)
Coolants with one-digit Global Warming
Potential (GWP)
Caustic soda
Plant
Glass
products
Recycling
Soda ash
The CO2 recycling system in the glass production process
Low-E double-
glazed glass
featuring high
insulation and
heat-shielding
properties
Automotive glass
Coolants with zero Ozone
Depletion Potential (ODP)
ASAHIKLIN AE-3000
AGC Report 2010
13
AGC Group Now
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, 2009, and an overview of each business
segment, as well as a description of our
corporate social responsibility (CSR)
initiatives.
Marunouchi Park Building
14 AGC Report 2010
Corporate Data
•
Name ・・・・・・・・・・・・・・・・・・・・・・ Asahi Glass Co., Ltd.
•
Head Offi ce ・・・・・・・・・・・・・・・・・・ 1-12-1, Yurakucho, Chiyoda-ku, Tokyo 100-8405 JAPAN
•
Founded ・・・・・・・・・・・・・・・・・・・・ September 8, 1907
•
Incorporated ・・・・・・・・・・・・・・・・・ June 1, 1950
•
Capital ・・・・・・・・・・・・・・・・・・・・・・ 90,873 million yen
•
Outstanding stock ・・・・・・・・・・・・・ 1,186,705,905 shares
•
Employees ・・・・・・・・・・・・・・・・・・・ 6,330 (non-consolidated) 47,618 (consolidated)
•
Consolidated Group companies ・・・ 178 (141 overseas) ・・・・・・・ As of the end of December 2009
Organization Data
Corporate Auditors
Board of Directors
Management Committee
Group Corporate
Shared Service Centers,
Research Center, etc.
Glass Company
Electronics Company
Chemicals Company
AGC Ceramics Co., Ltd.
Consolidated Financial Highlights
Net sales
¥1,148.2 billion
Operating
income
¥86.7 billion
Net income
¥20.0 billion
Total assets
¥1,781.9 billion
(billions of yen)
1,681.2
1,444.3
Operating income
(billions of yen)
Operating income
margin (%)
197.5
154.0
11.7%
10.7%
(billions of yen)
69.6
39.2
Total assets (billions of yen)
Net assets (billions of yen)
2,108.1
1,832.8
7.5%
1,027.3
780.9
808.3
’07/12 ’08/12 ’09/12
’07/12 ’08/12 ’09/12
’07/12 ’08/12 ’09/12
’07/12
’08/12
’09/12
AGC Report 2010
15
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
◉
Japan
Asahi Glass Co., Ltd.
● AGC Glass Kenzai Co., Ltd.
● AGC Okinawa Glass Kenzai Co., Ltd.
● AGC Glass Products 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.
16 AGC Report 2010
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.
The 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.
● Asahi Glass Fine Techno Korea Co., Ltd.
● Asahi PD Glass Korea Co., Ltd.
● AGC Display Glass Ochang Co., Ltd.
●●
●●●●
●
●
●●●●
Sales by region (consolidated)
Europe
17%
North America
6%
Asia
30%
Japan
47%
●
Percentage of employees by
region (consolidated)
Europe
28%
Japan
27%
North America
8%
Asia
38%
* Year ended December 2009
* The total percentage of employees does not add up to 100% due to numbers being rounded off.
* Sales and operating income by region are before eliminations, therefore the total amounts of sales and
operating income for regions do not agree with total sales and operating income.
Japan
Number of employees: approx. 12,700
Net sales: ¥658.6 billion
Operating income: ¥27.5 billion
Main business: Flat glass, automotive
glass, display glass, electronic materials,
chemicals, ceramics
Asia
Number of employees: approx. 18,000
Net sales: ¥418.0 billion
Operating income: ¥78.3 billion
Main business: Flat glass, automotive
glass, display glass, electronic materials,
chemicals, ceramics
North America
Number of employees: approx. 3,700
Net sales: ¥76.5 billion
Operating income: ¥–12.5 billion
Main business: Flat glass, automotive
glass, electronic materials, chemicals
Europe
Number of employees: approx. 13,200
Net sales: ¥236.1 billion
Operating income: ¥–6.5 billion
Main business: Flat glass, automotive
glass, chemicals
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 Glass Europe
● AGC Flat Glass Roux
● AGC Automotive Europe
● AGC Automotive Belgium
● AGC Europe
The Netherlands
● AGC Flat Glass Netherlands B.V.
The United Kingdom
● AGC Automotive UK, Ltd.
● AGC Chemicals Europe, Ltd.
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.
Czech Republic
● AGC Flat Glass Czech a.s., Clen AGC Group
● AGC Automotive Czech a.s.
Russia
● OJSC AGC Bor Glassworks
● AGC Flat Glass Vostok LLC
● AGC Flat Glass Klin LLC
France
● AGC France
Turkey
● AGC Otomotiv Adapazari Üretim, Sanayi Ve Ticaret
Anonim Sirketi
● Electronics and Display
● Glass
● Chemicals ● Ceramics
● Others
As of end of March 2010, companies such as equity method
affi liates that do not incorporate the “AGC” brand in their
names are included.
AGC Report 2010
17
Outline by Business Segment
Glass Operations
2009 Overview
Sales in the fl at glass business decreased year-on-year because shipments declined
in Japan, North America and Europe while the demand recovered in Asia, notably in
China. In Europe, while prices dropped sharply with a slump in demand, the Group
adjusted the capacity utilization rate of its facilities to meet the weak demand, and has
been trying to restore prices since the second quarter of the year. In the meantime,
although the growth in shipments of glass for solar power systems temporarily slowed
down, it got back on a recovery track after the middle of the year.
In the automotive glass business, shipments began to recover after the middle
of the year due to the effect of demand stimulus measures implemented in various
countries. However, shipments for the full fi scal year remained at low levels and sales
in this business decreased year-on-year. Further, the Group ceased the automotive
glass operations at the Kitakyushu Plant in December 2009.
As a result, net sales from the Glass operations for the fi scal year was 525.0 billion
yen which was 216.3 billion yen or 29.2% decrease year-on-year, and operating loss
was 35.0 billion yen which was 53.7 billion yen worse year-on-year.
Main Products
Flat glass
• Float fl at glass, fi gured glass, polished wired glass, heat-absorbing glass,
heat-refl ective glass, fabricated glass for architectural use, fabricated glass for
industrial use, etc.
• Glass for solar power system
Automotive glass
• Automotive tempered glass, automotive laminated glass, etc.
Other glass
• Lighting lamp glass products, industrial glass products, etc.
Electronics and Display Operations
2009 Overview
Sales in the display business increased year-on-year on the strength of the rapid
increase in the AGC Group’s shipments from the latter half of the fi rst quarter following
a rebound in demand for glass substrates for fl at panel displays (FPDs).
In the electronics materials business, although shipments have been recovering
gradually since the second half of the year, shipments for the full fi scal year remained
at low levels and sales decreased year-on-year.
As a result, net sales from the Electronics and Display operations for the fi scal year
was 369.3 billion yen which was 3.4 billion yen or 0.9% decrease year-on-year, and
operating income was 126.9 billion yen which was 0.4 billion yen or 0.3% increase
year-on-year.
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
designed front glass, LCD backlight glass tubes, optical membranes, etc.
Share of sales
45.5%
Year ended December 2009
Sales to customers
Net Sales/Operating Income
Net sales
(billions of yen)
Operating income
(billions of yen)
1,000
800
600
400
200
0
63.7
866.0
741.3
18.7
525.0
75
50
25
0
-25
2007/12
2008/12
-35.0
2009/12
(Year/month)
-50
Share of sales
32.1%
Year ended December 2009
Sales to customers
Net Sales/Operating Income
Net sales
(billions of yen)
Operating income
(billions of yen)
500
400
300
200
100
0
465.2
118.2
126.6
126.9
372.7
369.3
150
120
90
60
30
2007/12
2008/12
0
2009/12
(Year/month)
18 AGC Report 2010
Chemicals Operations
2009 Overview
In the chlor-alkali & urethane business, sales decreased year-on-year. Shipments in
Asia remained robust over the course of the year. Meanwhile, shipments in Japan
dropped compared with the previous fi scal year but have been picking up gradually
since the middle of the year.
In the fl uorochemicals & specialty chemicals business, shipments of fl uoropolymers
dropped sharply in particular and sales decreased compared with the previous fi scal
year.
As a result, net sales from the Chemicals operations for the fi scal year was 233.7
billion yen which was 69.4 billion yen or 22.9% decrease year-on-year, and operating
loss was 7.7 billion yen which was 11.6 billion yen worse year-on-year.
Main Products
Chlor-alkali & urethane
• Vinyl chloride monomers, caustic soda, urethane materials, gases, solvents,
etc.
Fluorochemicals & specialty chemicals
• Fluoropolymers, water and oil repellents, battery materials, iodine-related
materials, etc.
Other Operations
2009 Overview
In the ceramics business, sales decreased year-on-year due to the decline in demand
both in the glass engineering market and in the environmental energy market.
As a result, net sales from the Other operations for the fi scal year was 68.9 billion
yen which was 27.7 billion yen or 28.7% decrease year-on-year, and operating income
was 2.0 billion yen which was 3.0 billion yen or 59.4% decrease year-on-year.
Main Products
Ceramics products, etc.
Logistics services, fi nancial services
Share of sales
20.1%
Year ended December 2009
Sales to customers
Net Sales/Operating Income
Net sales
(billions of yen)
Operating income
(billions of yen)
400
320
240
160
80
0
12.4
319.4
15
10
5
0
-5
303.1
3.9
233.7
-7.7
2007/12
2008/12
-10
2009/12
(Year/month)
Share of sales
2.3%
Year ended December 2009
Sales to customers
Net Sales/Operating Income
Net sales
(billions of yen)
Operating income
(billions of yen)
100
80
60
40
20
0
96.6
5.0
87.6
3.2
8
6
4
2
68.9
2.0
2007/12
2008/12
0
2009/12
(Year/month)
AGC Report 2010
19
Business Overview
Glass Operations
Glass Operations covers businesses with focus on
fl at glass and its use in architectural, automotive,
and solar (photovoltaic) fi elds and maintains a lead-
ing share in these fi elds on a global basis. The archi-
tectural 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 auto-
motive industry that operates on a global basis.
•
Global market share (AGC estimates)
Flat glass ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・No.1
Automotive glass
(new vehicle market) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・No.1
Marunouchi Park Building
Low-E double-glazed glass
featuring high insulation and
heat-shielding properties
Low-E double-glazed glass is
used in Margaret Hall, Sagami
Women’s University
Photovoltaic cover glass
“Solite™”
Color glass for interior surface
wall
Safety glass for automobile
windshields that will hold
together when shattered
Tempered glass for
automobile side windows,
shock-resistant and specially
treated to shatter into
granules if broken
20 AGC Report 2010
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.
The AGC Group 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.
In 2009, the AGC Group integrated its fl at glass business and
automotive glass business to enhance its global manufacturing
and supply structure through seamless production and operation
ranging from raw glass production, processing and making into
fi nal glass products.
In the Glass Operations, the AGC Group undertakes manufacturing
of glass in an environment-friendly manner through effi cient
processes that have minimal impact on the environment. The
Group 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 AGC Group also actively promotes the production and
wide adoption of glass for photovoltaic and concentrating solar
power generation use and energy-saving glass (Low-E double-
glazed glass), thus targeting to expand business by responding to
growing demands from emerging markets.
For automotive glass, the Group provides high-quality products
and services through its global network in a timely manner to the
global production bases of automakers. The business includes
development and provision of high added-value products to be
used for compact cars and ecologically friendly cars.
PairPlus™: Ecoglass for
remodeling
Photovoltaic TCO*1 glass substrates
CoolverreTM : contributing to improved energy-saving perfor-
mance of automobiles
Normal windshields
Glass that blocks ultraviolet
rays(UV) and infrared rays(IR)
Glass
Glazing beads
incorporated into
the attachment
Existing sash
UV
Glass
IR(cause the
skin to sense
frizzling heat)
“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 house.
Glass substrates with TCO fi lms which function
as electrodes for thin-fi lm silicon photovoltaic
module.
*1 TCO: Transparent Conductive Oxide
Interlayer fi lm
Interlayer fi lm + IR absorbent
Coolverre™ is a thermal insulating laminated glass for automotives that blocks infrared
rays (IR) and ultraviolet rays (UV).
TOPICS
Going ahead of the times
—the embedded DTV compatible glass antenna
Non-wired, fi re-resistant glass “MybokaTM” contributes to
improving the interior environment of buildings
In Japan, all analogue broadcasting will be replaced by digital broadcasting in
July, 2011. The AGC Group launched volume manufacturing of in-car antennas
in July, 2007, going ahead of the times. The antenna is the world’s fi rst glass an-
tenna designed under a new concept of the embedded highly receptive sealed
type antenna, with distinctive appearance, inside the laminated glass. Its great-
est feature is the adoption of the technology that allows the signals received at
the embedded antenna to be transmitted to the electrodes on the in-car glass
surface with minimum loss. Therefore, the installation can be done without
complicated electrical connection setup.
It has been used widely as an automotive antenna because it will not sac-
rifi ce the car-body design and is easier to maintain, more durable and can be
lightweight.
The “MybokaTM” glass released in December 2009 is a highly fi re-resistant,
non-wired glass with enforced thermal resistance. Currently, more than 90%
of Japan’s fi re-resistant glass uses wire-reinforced glass. But the shortcoming
was that it cannot secure a clear view because the wire blocks visibility. In
recent years, as window sizes become larger, there has been an increasing
demand for a fi re-resistant glass that offers clear visibility. This is why AGC
launched a plant exclusively for “Myboka TM,” and started sales of the product.
In addition, by using “MybokaTM” for double-glazing glass and Ecoglass (low-E
double-glazed glass), the thermal resistance features on such products can be
improved. AGC aims to contribute to preventing global warming and improv-
ing the interior environment of buildings by offering highly functional glass.
Glass (inner layer)
Interlayer
Glass (outer layer)
Black Ceramics
Electrode
Sealed type antenna
Black Ceramics
Structure of the embedded DTV compatible glass antenna
Wired glass
Myboka™
AGC Report 2010
21
Business Overview
Electronics and Display Operations
Electronics and Display Operations covers busi-
nesses with focus on “display” and “electronic
materials.” The display business offers glass for all
major types of displays, including thin fi lm transistor
liquid crystal displays (TFT LCDs) and plasma dis-
play panels (PDPs), and enjoys a leading share of
the global market in this area. The electronic materi-
als business deals with fi elds, such as optoelectron-
ics, storage, and new energy, which are expected to
grow remarkably in the years ahead.
•
Global market share (AGC estimates)
Glass substrates for TFT LCDs ・・・・・・・・・・・・・・・・・・・・・・No.2
Glass substrates for PDPs ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・No.1
Glass substrates for TFT
LCDs
Glass substrates for PDPs
Synthetic quartz glass
Optical planar devices
LCD backlight glass tubes
Micro glass lenses
22 AGC Report 2010
We supply materials that are indispensable in numerous industries,
and support the advancement of displays and other devices.
The AGC Group manufactures glass substrates for various types
of displays, mainly thin fi lm transistor liquid crystal displays (TFT
LCDs) and glass substrates for plasma display panels (PDPs). The
AGC Group will develop and offer products with high added value
by responding to various market trends that include 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.
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 expand existing businesses and
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 glass substrates for
hard disk drives.
The structure of LCD
Backlight tubes
The structure of hard disk drive
Magnetic recording film
Magnetic head
Swing arm
Polarizer
Color fi lter
Liquid crystal
Designed front glass
Glass substrates
Glass substrates for hard disk drive
Magnetic disks used to record information on
personal computers are made by forming a
fi lm 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 fi lm.
Contributing to the realization of the next-generation
micro-fabrication technique, “Nanoimprint” lithography
–Developing an environmentally friendly mold release
production process–
“Nanoimprint” is ready to be mass-produced on a full scale as a next-generation
micro-fabrication technique to be employed in electronics production. While
it can raise processing precision at low cost, challenges in the past included
the problem of how to remove the high-precision substrate from the molded
product. Using the AGC Group’s long-accumulated fl uorinated chemical tech-
nology as the core, the Group developed various mold-release processes us-
ing fl uoropolymer-coating quartz substrates and fl uorinated UV cured resin
to replace conventional releasing agents. Because there is no need to use en-
vironmentally harmful solvents as releasing agents, this process can reduce
environmental impact. We plan to promote this process in the manufacturing
processes for light-emitting diodes (LEDs), photovoltaic devices, and semicon-
ductors in the future.
An example of micro-fabrication using “Nanoimprint” technology
TOPICS
Launching sales of
–a commercial plastic optical fi ber enabling the world’s
highest transmission speed
TM
The AGC Group plans to start sales of FONTEXTM (the name is derived from
a word meaning “fountain of light”), a new fl uoropolymer-based plastic opti-
cal fi ber (POF), starting July 2010. FONTEXTM is the world’s fi rst optical fi ber
product that combines high-capacity data communication at speeds of 10 Gbps
(Gigabit per second) and secure data transmission even when bent, which is
something we could never have dreamed of achieving with the existing silica
optical fi bers.
FONTEXTM is the optimal choice for products that are subject to be handled
roughly and require high-capacity data transmission such as wiring displays for
high-defi nition televisions and 3D televisions, which have been drawing public
attention recently, and connecting peripheral devices to computers. Also, FON-
TEXTM is being studied for adoption in the medical fi eld and by data centers
because of its feature of generating no electromagnetic noise and consuming
little power.
In addition, the AGC Group participates as a core member in a research
project titled “Plastic optical fi ber for the world’s highest data transmission
speed,” which was decided to secure a grant from the “Funding Program for
World-Leading Innovative R&D on Science and Technology” provided by the
Cabinet Offi ce of the Japanese Government. We will aim at achieving a further
ultra-high transmission speed (40 Gbps or
above) on a volume production level.
AGC will venture into the markets for
home information appliances and other
wide-ranging fi elds in the rapidly growing
markets for optical cables. We will acceler-
ate the release of new products by leverag-
ing our marketing and development capa-
bilities.
Cross-sectional photo of FONTEXTM
capable of high-capacity data
transmissions
AGC Report 2010
23
Business Overview
Chemicals Operations and
Other Operations
Chemicals Operations conducts businesses with
focus on “chlor-alkali & urethane” and “fl uorochemi-
cals & specialty chemicals,” and it enjoys a lead-
ing 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.
•
Global market share (AGC estimates)
Fluoropolymers (ETFE) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・No.1
Munich stadium (an example for application of highly functional fl uoropolymer fi lms)
CYTOP™ transparent
fl uoropolymers for pellicle
coating in semiconductor
applications
The Akashi Kaikyo Bridge,
treated with highly weather-
resistant Lumifl on™
fl uoropolymer coating
Asahi Guard™ fl uorinated
water and oil repellents for
coating
Flemion™ ion-exchange
membranes
AFLAS™ fl uoroelastomers
Roiceram™-C fi ne ceramics
(silicon carbide)
24 AGC Report 2010
We fulfi ll the latest needs through chemical technologies,
and develop extensive operations in ceramics, logistics and engineering.
Chemicals Operations
The AGC Group’s Chemicals Operations was originally established
in 1917 to internally supply soda ash, a source material for fl at glass.
We are expanding our business domain to include basic chemicals
essential to the industry such as caustic soda and hydrochloric
acid as well as numerous value-added fl uorinated products
applying fl uorochemicals, AGC’s core technology, and urethane-
related products by utilizing chlorine, a byproduct of the caustic
soda production process. Using the electrolysis of salt water as a
base point, 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 Group’s “chlor-alkali & urethane business” offers such chlor-
alkali products as caustic soda, sodium bicarbonate, and vinyl
chloride monomer; urethane-related products centering on polyols;
as well as gas and solvents. Meanwhile, the “fl uorochemicals
& specialty chemicals business” offers fl uorochemicals, mainly
fl uoropolymers, fl uoropolymer fi lms, fl uoropolymer for coatings,
fl uorinated water and oil repellents, 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. The ceramics business is strengthening its efforts in
the environment and energy fi elds such as developing refractory
materials for glass production facilities, solar-related parts and
high-performance thermal insulating refractory.
Crude salt is the raw material of basic
chemicals, which in turn leads to the devel-
opment of performance chemicals
F-Clean™, a high-performance fl uoropoly-
mer fi lm with additional functions for green-
house coverings
Ceramics sputtering target
Fluon® ETFE Film is used in the Japan pavilion at
Expo 2010 Shanghai China
FRP grating*1 decorates Yokohama Port’s 150th Year
TOPICS
AGC Group’s high-performance fl uoropolymer fi lm Fluon® ETFE Film is used
in the Japan pavilion Zi Can Dao (purple silkworm island) at Expo 2010 Shang-
hai China.
Fluon® ETFE Film, which is used as a membrane material in this pavilion,
is a fi lm produced from high-performance fl uorores, which AGC manufactures
through an integrated production process from raw material to fi nal product.
Fluon® ETFE Film is widely used because of its excellent heat resistance,
chemical resistance, and transparency. It is also used increasingly as a con-
struction material, mainly overseas.
Japan’s Yokohama Port celebrated its 150th anniversary in 2009. The Zou-no-
hana (elephant trunk) area played a central role in the port’s opening and has
been redeveloped as Zou-no-hana Park, where a monument was built under the
concept of the port’s origins. A fi ber-reinforced plastic (FRP) grating made by
AGC Matex has been selected to be a part of the monument, which consists of
a vast circle of illuminating screen panels. The combination of the light panels
symbolizing the modern age and cast iron louvers giving out a touch of history
has won praise from various fi elds. The AGC Group’s FRP grating is strong,
light and stainless, and it has won high praise for its design as well. It is used in
many buildings and structures, and an increasing interest is being shown in the
use for photovoltaic module mounts. In addition, our highly weather-resistant
Lumifl on™ fl uoropolymer coating is used on the monument’s body.
*1 A lattice-shaped panel using fi ber-reinforced plastic (FRP)
The Japan pavilion Zi Can Dao in the Expo 2010 Shanghai China (CG image)
“Zou-no-hana Park” decorated with FRP gratings
AGC Report 2010
25
AGC Group’s CSR
For the AGC Group, the pursuit of its group vision
represents the fulfi llment of its CSR. We regard it
AGC Group Charter of Corporate Behavior (Extract)
our mission to
to make the world a brighter
● Integrity: Sincere Behavior
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,”“E
● Environment and Safety:
With Due Consideration
● Diversity: Respect for People
nvironment,” and “Integrity.” We would thereby like to achieve
● Harmony with Society:
sustainable growth as a socially trusted corporate group.
From“ Responsibility” to“ Reliability”
As a declaration of our commitment to achieving this target,
we have established the AGC Group Charter of Corporate Be-
havior.
CSR Activities under AGC Group Charter of Corporate Behavior
Integrity: Sincere Behavior
Diversity: Respect for People
Compliance
The AGC Group is committed to increasing the fairness and trans-
parency 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.
With Business Partners
For the fulfi llment of its CSR, the AGC Group believes that it is
essential to cooperate with business partners who are the mem-
bers of the Group’s supply chain. Based on this belief, we will
press forward with CSR measures in cooperation with our busi-
ness partners.
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 im-
prove the quality of its products and services in order to increase
customer satisfaction and by changing employee’s ways of think-
ing based on the idea of incorporating the concept of CS into
each employee’s daily work processes.
Environment and Safety: With Due Consideration
Environmental Activities
The AGC Group, being fully aware of the high environmental im-
pact 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.
Industrial Safety & Security
The AGC Group has been implementing measures to minimize
damage caused by accidents. Specifi cally, we are trying to prevent
contingencies (accidents and natural disasters) and to promptly
and appropriately take action in the case of actual occurrence.
Occupational Health & Safety
Based on the policy that “no production should be operated with-
out assurance of safety,” the AGC Group is ensuring occupational
health and safety at its production sites by applying its Occupa-
tional Health and Safety Management System (OHSMS) and se-
curing the equipment’s safety.
26 AGC Report 2010
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 envi-
ronment 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.
Harmony with Society: From“ Responsibility” to“ Reliability”
Social Contribution Activities
The AGC Group is engaged in a variety of activities with the aim of
contributing to further enhancing a healthier society as a respon-
sible corporate citizen.
Communication Activities
The AGC Group proactively discloses corporate information in a
timely and appropriate manner so as to ensure suffi cient commu-
nication with our stakeholders. Through such continuing efforts,
the AGC Group aims to incorporate your opinions into our CSR
activities and gain your understanding and support for our Group-
wide activities.
For more details, see AGC Group CSR Report 2010
AGC CSR Website
http://www.agc.co.jp/english/csr/
Corporate Governance / Internal Control / Risk Management
Approach to Corporate Governance
As stated in its basic policy on corporate governance, Asahi Glass clearly
separates the function of “oversight” and “execution” of management,
aiming to reinforce the management oversight function while ensuring
quick decision-making in management execution.
Under this policy, we have been implementing measures to further
improve both our management system and internal control system in
order to ensure highly transparent and effi cient management.
Corporate Governance Structure
AGC Group’s Corporate Governance Structure (Outline)*1
The Board of Directors of Asahi Glass comprised seven directors,
including three outside directors. In order to ensure the independence
of outside directors, we have established our own selection criteria.
We comply with these inhouse criteria as well as the provisions on
outside directors set forth in the Companies Act.
For the selection and evaluation of directors and executive offi cers
and for their compensation, we have respectively established the
Nominating Committee and the Compensation Committee. We
entrust these non-statutory advisory committees to deliberate related
matters, thereby ensuring the objectivity of any decisions made. As
to the compensation of directors (excluding outside directors) and
executive offi cers, we have introduced stock compensation-type stock
options allowing them to share benefi ts with shareholders, and have
also introduced performance-linked bonuses for executive offi cers
(including directors who serve also as executive offi cers). Outside
directors, on the other hand, are paid only monthly compensation.
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General Meeting of Shareholders
Corporate Auditors:
4 Auditors
(Including 3 Outside
Corporate Auditors)
Independent
Accountants
Board of Directors: 7 Directors
(Including 3 Outside Directors)
Nominating Committee: 5 Directors
(Including 3 Outside Directors)
Compensation Committee: 5 Directors
(Including 3 Outside Directors)
President & CEO
Executive Vice President & CTO
Senior Executive Officer & CFO
Executive Officers
Management Committee
CSR Committee
Compliance Committee
Fair Trade Committee
Information Management Council
Internal Audit Office Group Corporate
Security Export Control Headquarters
In-house Companies/Strategic Business Units (SBUs)*2
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*1. As of March 30, 2010
*2. An In-house Company is defi ned as a business unit with net sales exceeding 200 billion yen
which conducts its business globally. At present, there are three In-house Companies: Glass
Company, Electronics Company, and Chemicals Company. Business units of smaller sizes are
defi ned as Strategic Business Units (SBUs).
Internal Control
In response to the enforcement of the Companies Act, Asahi Glass
decided on its corporate policy over internal control at the Board of
Directors meeting held in May 2006, aiming to review its business
operation systems, including the compliance system based on the
policy, to ensure their appropriateness.
After introducing the internal control reporting system in compliance
with the Financial Instruments and Exchange Act, we set the AGC
Group’s rules for internal control over fi nancial reporting. Based on
these rules, we proceeded with the documentation of process-level
controls over fi nancial reporting, identifi cation of risks and organization
of controls, and assessment of the implementation of controls. We then
started the full implementation of internal control over fi nancial reporting
in fi scal 2009.
Risk Management
Based on its corporate policy over internal control, the AGC Group
makes it a rule to identify important risk factors and monitor and discuss
the state of risk control periodically at meetings of the Management
Committee and the Board of Directors.
In identifying important risk factors, we conduct questionnaire surveys
across the Group to create risk maps and assess risks. The Management
Committee and the Board of Directors then discuss the factors at their
meetings, and the related organizations formulate action plans to
implement the Plan, Do, Check, and Act (PDCA) cycle for the continuous
improvement of their risk control levels. Additionally, for important risk
factors which might cause large-scale accidents and disasters, we are
implementing measures to formulate and operate business continuity
plans (BCPs). Specifi cally, we are taking countermeasures against the
new type infl uenza and natural disasters such as earthquakes.
Internal Audit
The AGC Group has established a global internal audit system to manage
its organization in Asia including Japan, Europe and North America.
Through this system, independent monitoring is conducted on internal
control and risk management measures implemented throughout the
Group’s organizations in the regions to ensure the effectiveness and
effi ciency of the measures.
Under this system, the audit departments in each region monitor
the progress made in establishing systems of internal control and risk
management within their regions, and the legality and rationality of the
implementation of the above systems for further improvement.
The internal audit results are reported to the AGC Group’s CEO as
necessary as well as its Board of Directors on a periodic basis.
CSR Promotion System
The AGC Group established its CSR Committee in 2005. This Committee,
which serves as an organization to lead the fulfi llment of CSR by the
Group, is chaired by the CEO and composed of the CTO, CFO, and
the heads of the in-house organizations. It discusses the Group’s CSR-
related policies and issues. In addition, the Group Corporate CSR Offi ce,
which is led by a dedicated executive offi cer, serves as the secretariat
for the Committee and its monthly meetings, while taking charge of CSR
activity planning and CSR communications for the entire Group.
AGC Report 2010
27
Board of Directors,
Corporate Auditors and Executive Offi cers
Board of Directors
Masahiro Kadomatsu
Chairman of the Board
Kazuhiko Ishimura
Representative Director
President & CEO
Katsuhisa Kato
Representative Director
Executive Vice President &
CTO
Takashi Fujino
Director
Senior Executive Offi cer &
CFO
Kunihiro Matsuo
Director (Outside)
Attorney At Law, Kunihiro
Matsuo Law Offi ce
Hajime Sawabe
Director (Outside)
Representative Director
Chairman, TDK Corporation
Toru Nagashima
Director (Outside)
Chairman of the Board,
Teijin Limited
Executive Offi cers
•
President & CEO
Kazuhiko Ishimura
CEO; GM of Group Strategy Offi ce
•
Senior Executive Vice
Presidents
Yuji Nishimi
President of Electronics Company
Akio Endo
President of Glass Company
•
Executive Vice President
Katsuhisa Kato
CTO; Deputy GM of Group
Strategy Offi ce
•
Senior Executive Offi cers
Kei Yonamoto
Vice President, Automotive,
Glass Company
Shukichi Umemoto
GM of Finance & Control Offi ce
Yasutoshi Hirata
GM of Human Resources &
Administration Offi ce
Nozomu Taguchi
GM of Electronic Glass General
Div., Electronics Company
Marehisa Ishiko
Regional President of Japan/Asia
Pacifi c, Glass Company
Yoshiaki Tamura
GM of Display General Div.,
Electronics Company
28 AGC Report 2010
Corporate
Auditors
Takashi Terashima
Izumi Tamai
(Outside)
Koji Ogaki
(Outside)
Shigeru Hikuma
(Outside)
Tetsuo Tatsuno
Vice President, Planning and
Coordination, Glass Company
Eisuke Yanagisawa
GM of Legal
Hiroshi Akagi
GM of Business
Management General Div.,
Chemicals Company
Tokio Matsuo
GM of CSR Offi ce
Akinobu Shimao
President of
AGC Ceramics Co., Ltd.
Tomoya Takigawa
GM of Research Center
Takashi Shimbo
GM of Purchase &
Logistics Center
Shinji Miyaji
Group Leader of Corporate
Planning Group,
Offi ce of President;
Deputy GM of Group
Strategy Offi ce
Jean-François Heris
Regional President of Europe,
Glass Company;
President & CEO of AGC Glass
Europe
Takashi Fujino
CFO; GM of Offi ce of President;
Deputy GM of Group Strategy 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
Masayuki Kamiya
Assistant to President of
Glass Company; Deputy GM of
Group Strategy Offi ce
Toru Kawatsura
Assistant to President of
Glass Company
Tadayuki Oi
Vice President, Technology,
Glass Company
Yasumasa Nakao
GM of Production Technology
Center
Shinichi Kawakami
Deputy GM of Group Strategy Offi ce
Takuya Shimamura
President of Chemicals Company
(Abbreviation)
“GM”: General Manager
On April 1, 2010
Milestones 1907 - 2010
History of AGC Group
New medium-term management plan
started.
2010
Glass Company and Electronics Company established.
2009
Management policy
introduced.
2008
Group brand unified as “AGC.”
2007
Asahi Glass Company’s 100th anniversary
Electronics & Energy General Division established.
management policy introduced.
2005
2004
Glaverbel made into a wholly owned subsidiary.
2002
AGC Group Vision
formulated.
Global In-House Company System introduced.
AFG Industries, Inc. of the U.S.A acquired.
Asahi Glass Foundation creates the “Blue Planet Prize” to
honor those who help solve environmental problems.
1992
1991
Asahi Glass acquires Glaverbel S.A.
glass company in Belgium.
1981
Products & Technologies of AGC Group
2010
TM , a commercial
Sales of
plastic optical fiber enabling the
world’s highest transmission speed
launched.
2006
2002–
Toward Global
Management
Scheme
Fluon® highly functional ETFE
fluoropolymer film selected for the
main stadium and the venue for
aquatics events at the Summer
Games in Beijing.
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.
1999 Mass production of “PD200” glass substrate for plasma
display panels (PDPs) begins.
1998 Mass production of a new alkali-free glass for TFT LCDs
begins.
1990
“CYTOP™” transparent fluoropolymer developed.
1950–2001
Era of Growth
and Expansion
1980
1975
1966
1961
AZEC System of caustic soda manufacturing using
ion-exchange membrane developed.
Production of “Asahi Guard™” fluorinated water and oil
repellents and “Aflon COP” fluorinated resins begins.
Ion-exchange membrane method for manufacturing caustic
soda developed.
Production of float glass begins.
Asahi Glass moves into organic
chemicals, manufacturing propylene
oxide and propylene glycol.
Manufacture of automotive glass begins.
The Indo-Asahi Glass Co., Ltd.
established in India.
Asahi Glass moves into the cathode-
ray tube (CRT) glass bulb business.
Asahi Glass Company incorporated.
1956
1954
1950
Shoko Glass Co., Ltd. established in
China.
1925
1907–1949
The Early Years
Asahi Glass Company founded in
Amagasaki, Hyogo Pref.
1907
1954
Production of double-glazing units begins.
1938
1933
1928
1917
1916
1909
Production of tempered glass and laminated glass begins.
Caustic soda production using lime process begins.
Production of ordinary sheet glass using Fourcault process
begins.
Japan’s first soda ash produced using ammonium method.
Production of refractories begins at the
Amagasaki Plant.
Production of Belgian-type hand-
blown sheet glass, the first sheet glass
successfully manufactured in Japan,
begins.
AGC Report 2010
29
A
G
C
R
e
p
o
r
t
2
0
1
0
1 2
4
5
3
6
7
8
❶ Fluoropolymer-based plastic optical fiber (FONTEXTM)
❷ TFT LCD glass substrates
❸ Liège-Guillemins Station, Belgium / ©AGC Glass Europe
❹ Automotive glass
❺ Glass substrates for hard disk drive
❻ Fluon® ETFE Film
❼ Solar panels / Spain
Author : Fernando Tomás (Zaragoza, Spain)
*For illustrative purpose only
❼ Synthetic quartz glass
AGC Report
2010
Issued June 2010
*Soy ink is used for
this Report
The paper used for pages 1 to 28 of this report
comes from trees thinned from forests. This
represents the effective use of trees thinned from
forests and should in turn contribute to the
promotion of forest thinning for forest health.