AGC Report 2011
The AGC Group, with Asahi Glass Co., Ltd. at its core, is a global solution
provider for architectural, automotive and display glass, chemicals and
other high-function materials and components.
Drawing on more than a century of technical innovation, the Group has
developed world-class core technologies in fi elds including glass, chemi-
cals and ceramics.
Under the
brand, approx. 50,000 group employees share the group
vision
and work together to create new value.
AGC Report 2011 Contents
1 AGC Group Vision
2 Top Message
Research & Development
12 Research & Development Creates the Future of the
4 Corporate Data/Organization Data/Corporate
AGC Group
Governance
5 Consolidated Financial Highlights/Business
14 AGC Group around the World
Segments
Businesses
6 Glass Operations
7 Electronics Operations
8 Chemicals Operations and Others
9 Highlights
16 Board of Directors, Corporate Auditors and
Executive Offi cers
17 Milestones 1907 - 2011
Group Vision
AGC Group Vision
We, the AGC Group, “Look Beyond” to
make the world a brighter place.
Management Policy
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:
Action Plan
(Medium-Term Management
Plan)
… 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 stan-
dard of performance.
Diversity
We will respect individuals
with different cultures, capa-
bilities and personalities, and
our global management will
operate without regard to
nationality, gender or back-
ground.
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.
AGC Report 2011
1
Top Message
Under the Medium-Term Management Plan
We will Steadily Build Foundations for Further Growth.
Kazuhiko Ishimura
President & CEO
AGCʼs Aspirations for 2020
The 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 busi-
ness activities
•
Contributing to the development of fast-growing regions
Specifi cally, we are aiming to achieve total sales of at least 2 tril-
lion yen and also to raise the sales share of “products for the fast-
growing markets,” “environmental products,” and “new products”
to 30% or higher by 2020.
Accelerating the Building of Foundations for Growth as a
Truly Global Enterprise
To achieve the Aspirations for 2020, the AGC Group will acceler-
ate the building of foundations for growth focusing on the follow-
ing three points.
①Delivering technology solutions for climate change
— We will give due consideration to the environment in all our
business operations.
Climate change is a serious issue that could threaten the business
continuity of the AGC Group, but we regard this as a great oppor-
tunity to contribute to society through our business. Recognizing
In March 2011, a massive earthquake struck eastern Japan,
causing unprecedented damage to the country, particularly in the
Tohoku region. This devastating disaster also affected operations
at some of our plants. At these plants, we manufacture not only
architectural glass that is an essential element in our modern life-
styles but also products that directly contribute to the basic infra-
structure of society, including sodium hypochlorite which is used
for the disinfection of tap water, and sodium bicarbonate which is
used in artifi cial dialysis.
As a company that manufactures a range of products indis-
pensable in our lives, the AGC Group will proactively endeavor to
support recovery efforts for areas affected by the disaster and help
residents return to normal life.
Confronting the current diffi culties head-on, we will contin-
ue to promote the measures set out in our medium-term plan
and strive to build foundations for future
growth.
Aiming to Implement the Aspirations for 2020 as an Enter-
prise that Contributes to a Sustainable Society
The AGC Group recognizes the necessity of building a sustain-
able society from a more comprehensive global viewpoint, and
has clearly defi ned its aspirations for 2020 in order to contribute to
the creation of such a society.
2
AGC Report 2011
Management
Policy
For the achievement of the Aspirations for
2020, build foundations for growth focusing
on the three points.
Aspirations for 2020
Second Round of Globalization
Building Foundations for Growth
Building foundations for the growth of the AGC Group,
looking at medium- and long-term
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
our responsibility as an energy-intensive glass manufacturer, we
earnestly strive to reduce energy consumption in our manufactur-
ing processes.
Moreover, we will deliver technology solutions for climate change
by developing, manufacturing and globally promoting products,
such as solar-related materials and components that contribute
to higher generating effi ciency, energy-saving architectural glass
suitable for each region and high-performance automotive glass
for eco-friendly vehicles, by taking advantage of our technological
expertise in glass, chemicals and ceramics.
②Glass-technology-driven company
— Adding further value to our products through our strong and
differentiated technologies.
We will further advance our glass technology and fuse our core
technologies in glass, chemicals and ceramics to differentiate our
business. We will thereby provide more value-added products, in-
cluding those related to displays.
③Second round of globalization
— As a global company, we will also contribute to the growth of
fast-growing regions.
We will enhance our business in developed regions including
Japan, Europe and North America while continuing to expand
operations in fast-growing regions where we have already estab-
lished bases. For example, we started operation of one of the
world’s largest fl oat glass lines in Russia in September 2010 and
appointed a chief representative to represent the AGC Group in
China at the beginning of 2011. We will also accelerate the launch
of our business in countries and regions where we currently have
no presence, such as Brazil.
In furthering our business in fast-growing regions, we aim to
contribute to the growth of the regions through business. To this
end, we are currently examining the possibility of leveraging global
human resources in each region and building a business model
that differs from those used in developed areas.
Bringing Our People and Organization Together under the
Slogan of “Our People are Our Strength”
Our People are the driving force for the implementation of
measures and the achievement of the Aspirations
for 2020. Recognizing this, we give growth opportunities to em-
ployees who have high motivation toward their own growth and
are highly committed to their work. Growth will allow them to take
on more diffi cult challenges, and this in turn will make them grow
further.
The AGC Group has about 50,000 employees working in ap-
proximately 30 countries and regions, each of which follow differ-
ent business and social customs. This diversity in our workforce
confers a great advantage upon the Group. Each of our em-
ployees upholds the four values provided under the group vision
and works to fulfi ll social responsibilities in their
geographic areas. Supported by these employees, we will per-
sistent in our efforts to become a globally trusted and respected
corporate group that continues to grow by providing high added-
value products and services.
AGC Report 2011
3
Corporate Data/Organization Data/
Corporate Governance
Corporate Data
● Name ・・・・・・・・・・・・・ Asahi Glass Co., Ltd. (Global brand: AGC)
● Head Offi ce ・・・・・・・・・・ 1-12-1, Yurakucho, Chiyoda-ku, Tokyo 100-8405, Japan
1-5-1, Marunouchi, Chiyoda-ku, Tokyo 100-8405, Japan (from August 16, 2011)
● Founded ・・・・・・・・・・・・ September 8, 1907
● Incorporated ・・・・・・・・・・ June 1, 1950
● Capital ・・・・・・・・・・・・・ 90,873 million yen
● Outstanding stock ・・・・・・・ 1,186,705,905 shares
● Employees ・・・・・・・・・・・ 50,399 (consolidated), 6,275 (non-consolidated)
● Consolidated Group companies 178 (141 overseas) ・・・・・・・・・・・・・・・・・・・・・・・・・・・
As of the end of December 2010
Organization Data
Corporate
Auditors
Glass Company
Board of Directors
Management Committee
Electronics Company
Group Corporate
Shared Service Centers,
Research Center, etc.
Chemicals Company
AGC Ceramics Co., Ltd.
Corporate Governance
Approach to Corporate Governance
As stated in its basic policy on corporate governance, Asahi
Glass clearly separates the function of “oversight” and “execu-
tion” of management, aiming to reinforce the management over-
sight function while ensuring quick decision-making in manage-
AGC Group’s Corporate Governance Structure (Outline)*1
ment 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.
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Corporate Auditors:
4 Auditors
(Including 3 Outside
Corporate Auditors)
Independent
Accountants
Executive Officers
General Meeting of Shareholders
Board of Directors: 7 Directors
(Including 3 Outside Directors)
Nominating Committee: 4 Directors
(Including 3 Outside Directors)
President & CEO
Senior Executive Vice President
(Overall business management)
Executive Vice President & CTO
Senior Executive officer & CFO
Management Committee
CSR Committee
Compensation Committee: 4 Directors
(Including 3 Outside Directors)
Compliance Committee
Fair Trade Committee
Information Management Council
Security Export Control Headquarters
Internal Audit Office
Group Corporate
In-house Companies/Strategic Business Units (SBUs)*2
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*1 As of March 30, 2011
*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).
4
AGC Report 2011
Consolidated Financial Highlights/
Business Segments
Consolidated Financial Highlights
Net sales
￥1,288.9 billion
Operating
Income
￥229.2 billion
Net
income
￥123.2
billion
(billions of yen)
Total assets ￥1,764 billion
(billions of yen)
■
●
Operating income (billions of yen)
Operating income margin (%)
(billions of yen)
1,444.3
1,148.2
17.8%
154.0
10.7%
86.7
7.5%
39.2
20.0
■
■
Total assets (billions of yen)
Net assets (billions of yen)
1,832.8
1,781.9
780.9
808.3
849.8
’08/12
’09/12
’10/12
’08/12
’09/12
’10/12
’08/12
’09/12
’10/12
’08/12
’09/12
’10/12
Business Segments
Figures in brackets indicate actual results for the year ended December 2010.
*Share of sales is calculated based on sales to customers outside the Group.
AGC Group (Net sales: ￥1,288.9 billion)
Glass
Net sales: ￥570.9 billion;
Share of sales: 44%
Electronics and displays
Net sales: ￥435.3 billion;
Share of sales: 34%
Chemicals
Net sales: ¥260.1 billion;
Share of sales: 20%
Other (Ceramics products, etc.)
Net sales: ￥77.3 billion;
Share of sales: 2%
Flat glass
Net sales: ￥311 billion
Displays
Net sales: ￥371.7 billion
Fluorochemicals &
specialty chemicals
Net sales: ￥96 billion
Automotive glass
Net sales: ￥247.8 billion
Electronics materials
Net sales: ￥63.6 billion
Chlor-alkali & urethane
Net sales: ￥172.8 billion
Other glass (Lighting glass products,
industrial glass products, etc.)
Net sales: ￥12.1 billion
AGC Report 2011
5
Glass Operations
Tsinghua University (Beijing, China) ©AGC Glass Europe
Glass Operations consists of businesses focused on architectural
fl at glass, automotive glass and solar glass, and maintains a lead-
ing share in these fi elds on a global basis. The architectural fl at
glass business is operated on a regional basis, with regions devis-
ing individual product line-ups matching the particular character-
istics of their respective geographic regions.
The automotive glass business is characterized by global scale
and operation, in line with the requirements of an automotive in-
dustry that operates on a global basis.
● Global market share (AGC estimates)
Flat glass ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・No.1
Automotive glass (new vehicle market) ・・・・・・・・・・No.1
Main Products
Flat glass
Float flat glass, figured glass, polished wired glass, low-emissivity
(Low-E) glass, fabricated glass for architectural use (heat-insulating
glass units, safety glass, fire-resistant glass, security glass, etc.),
decorative glass, fabricated glass for industrial use, glass for solar
power systems, etc.
Automotive glass
Tempered automotive glass, laminated automotive glass, etc.
AGC studio opened in Kyobashi, Tokyo for
hands-on exhibit of the glass products
Low-E double-glazed glass featuring high insulation and
heat-shielding properties
Photovoltaic cover glass “Solite™”
“UV Verre Premium™” is tempered glass for automotive
front door windows which fi lters out approx. 99%* of UV
rays
* Measured by AGC based on ISO 9050 standards”
Color glass for interior surface wall
6
AGC Report 2011
Electronics Operations
LCD (for illustrative purpose only)
Electronics Operations consists of businesses focused on “dis-
plays” and “electronic materials.” The display business enjoys
a leading share of the global market in this area. The electronic
materials business deals with fi elds, such as optoelectronics, stor-
age, and “new energy”, which are expected to grow remarkably
in the years ahead.
● Global market share (AGC estimates)
Glass substrates for TFTs ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・No.2
Glass substrates for PDPs ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・No.1
Main Products
Displays
Glass substrates for display devices, specialty glass for display applica-
tions, display-related materials, etc.
Electronic materials
Optical membranes, optoelectronics materials, synthetic quartz glass,
glass frit and paste, materials for semiconductor manufacturing equip-
ment, lighting glass products, etc.
FONTEX™―a commercial plastic optical fi ber
enabling the world’s highest transmission speed
Glass substrates for TFTs
Dragontrail™ glass for chemical strengthening
Synthetic quartz glass
GCHP™ ceramic and glass substrate for insulation of light
emitting diodes
Luminous effi ciency correction (IR-absorbent) fi lters
AGC Report 2011
7
Chemicals Operations and Others
Electroformed refractory for glass
fusing furnaces
The Japan pavilion in the Expo 2010 Shanghai China
Chemicals Operations consists of businesses focused on “chlor-
alkali & urethane” and “fl uorochemicals & specialty chemicals”
and it has a leading global share in fl uoropolymers (ETFE) used
for highly functional fl uoropolymer fi lms and other essential
applications.
In addition to the three main businesses, the AGC group is
also engaged in businesses including ceramics, logistics and
engineering.
Main Products
Chlor-alkali & urethane
Raw materials for vinyl chloride polymer, caustic soda, urethane materi-
als, gases, solvents, etc.
Fluorochemicals & specialty chemicals
Fluorinated resins, water and oil repellents, pharmaceutical and agro-
chemical intermediates, iodine-related products , battery materials, etc.
● Global market share (AGC estimates)
Fluoropolymers (ETFE) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・No.1
Ceramics products, etc.
Logistics services, fi nancial services
CYTOP™ transparent fl uoropolymers for pellicle coating in
semiconductor applications
Asahi Guard™ fl uorinated water and oil repellents for
coating
The Akashi Kaikyo Bridge, treated with highly weather
resistant Lumifl on™ fl uoropolymer coating
Roiceram™-C fi ne ceramics (silicon carbide)
Flemion™ ion-exchange membranes
Fluon™ ETFE fl uoropolymer tubes and pipes
8
AGC Report 2011
Highlights
Launching the strong and beautiful Dragontrail™ glass to meet
growing demand for electronic devices worldwide
The AGC Group has developed and launched on the market
Dragontrail™, a glass material that is highly receptive to chemical
strengthening, for use as cover glass for screens on smartphones,
tablet PCs, LCD televisions and other products. These electronic
devices with touchscreen panels are growing in demand world-
wide, and this trend is expected to drive the increased use of our
new material as high-quality cover glass.
The range of applications utilizing Dragontrail™ is expected to
expand, for example, for use as cover glass for TV screens, a
market expected to increase in coming years. We will also seek
the possibility of extensive applications in the housing, automobile
and solar markets in which we operate.
Dragontrail ™ subjected to strength test
three-point bend test on 1.1 mm-thick glass plate
Dragontrail™ features unmatched
strength compared with conven-
tional glass, and superior scratch
resistance that cannot be achieved
with resin. In addition, it produces
an outstanding quality surface with
a distinct glassy luster.
We will start up a new facility at
the Takasago Plant in the latter half
of fi scal 2011, aiming to achieve
sales of 30 billion yen or more in the
global market in 2012.
UV Verre Premium™―the world’s fi rst*1 approx. 99%*2
UV blocking tempered glass for automotive front door windows
The AGC Group started sales of UV Verre Premium™ in Decem-
ber 2010. UV Verre Premium™ is the world’s fi rst tempered glass
for automotive front door windows which successfully fi lters out
approximately 99% of UV rays. We conducted a face-to-face sur-
vey of drivers in Japan, with a particular focus on female drivers,
and found out that with regards to automotive glass/windows the
respondents are most concerned about UV rays. Our existing UV
blocking tempered glass for front door windows fi lters out ap-
proximately 90% of UV rays. With the newly developed UV Verre
Premium™, we have succeeded for the fi rst time in the world in
fi ltering out approximately 99% of the sun’s UV rays by forming a
UV Verre Premium™―tempered glass for automotive front door windows―blocks
approx. 99% of UV rays
high-performance UV absorbing layer on the surface of the con-
ventional glass. This UV blocking glass has been developed pri-
marily to cater to women drivers, and the planning and promotion
was led by our female staff.
*1 As of December 2010; survey conducted by AGC
*2 Measured by AGC based on ISO 9050 standards”
Structure of UV blocking tempered glass for
automotive front door windows (conceptual illustration)
New UV blocking tempered glass
Existing UV blocking tempered
UV Verre
UV Verre Premium
UV absorbent
UV absorbent kneaded into glass
Previous UV
blocking
tempered glass
High-performance
UV absorbing layer
Existing UV blocking tempered
glass
+
High-performance
UV absorbing layer
AGC Report 2011
9
Highlights
Taking part in large-scale solar power generation
project / Participating in international trade shows
In Europe, large-scale projects have been launched for the in-
stallation of solar thermal power generation facilities, and the
AGC Group extensively provides products related to solar power
generation.
The Desertec Industrial Initiative (Dii) Project, mainly operated
by German companies, is a typical example. This project was
launched in 2009 for the purpose of installing large solar thermal
power and wind power generation systems in vast desert areas in
the MENA region (Middle East and North Africa). The AGC Group
takes part in this project, and contributes to this grand initiative
by making the most of the technologies in glass, chemicals and
ceramics that it has cultivated over time.
In addition to R&D activities on solar-related products, the
Group also participates in international trade shows in an effort
to promote the widespread use of solar power generation. In fi s-
cal 2010, we participated in the 2010 International Photovoltaic
Power Generation Expo (Tokyo), SNEC 4th (2010) International
Photovoltaic Power Generation Conference & Exhibition (Shang-
hai), INTERSOLAR 2010 (Munich) and Solar Power International
2010 (Los Angeles).
AGC’s glass, chemicals and electronics technologies play a major role in the Dii project
AGC’s exhibition booth at Solar Power International 2010
Launching sales of GCHP™
―a glass-ceramics substrate for high-power LEDs
In July 2010, the AGC Group started sales of a new glass-ceram-
ics substrate that enables LED lighting with high-brightness and
high-durability.
LED applications have so far been limited primarily to products
with extremely low power output, such as liquid crystal display
televisions and home interior lighting. In future, however, the de-
mand trend is expected to shift toward high-output LED applica-
tions that require high-brightness, such as 3D televisions, automo-
tive headlights and other automotive lighting, and outdoor lighting
and illumination. In addition to high-brightness, high-durability is
also a prerequisite for high-output LED applications as heat gen-
eration becomes greater as the power output increases.
Conventional resin substrates are susceptible to high temper-
atures and are not considered suitable for high-output LEDs. In
contrast, alumina substrates are heat-resistant, but the refl ectivity
deteriorates over time as the silver refl ective fi lm, which is used for
enhancing high-brightness, becomes sulfurated over a prolonged
period. In addition, due to the poor moldabiliy, alumina substrates
are considered to have only limited usage.
AGC’s new substrate created through the integration of our
glass technology and ceramics technology enables both high-
brightness and high-durability for high-output LEDs, and has ex-
cellent moldability into compact shapes.
LED package cross
section
Glass-ceramics substrate (GCHP ™ )
Comparison of mechanism between glass-ceramics
substrate and alumina substrate
Alumina substrate
Light
LED
Light transmission
Heat
Light
LED
Heatsink
Heat
GCHP™―a glass-ceramics substrate for high-power
LED lighting
The glass-ceramics substrate (left) has higher light refl ectivity than the alumina substrate (right). The former also has
higher heat dissipation, supported by the incorporated silver heatsink. It is technically diffi cult to calcine alumina with
silver incorporated due to high temperature required for alumina calcination.
10 AGC Report 2011
Setting up a production base for TFT-LCD
glass substrates in China
Fluon ™ ETFE Film used to cover exterior
walls of a Uniqlo store
In March 2011, the AGC Group set up a new production
base in Jiangsu, China to manufacture thin-fi lm transistor
liquid crystal display (TFT-LCD) glass substrates. Facilities
will be installed for processing up to 8th generation glass
substrates, and volume production is scheduled to start in
Autumn 2011.
Demand for TFT-LCD panels for both TVs and PCs remains
strong, and is expected to continue to grow at a rate of 10
to 20% per year. In the TFT-LCD panel manufacturing sector,
large-sized mother glass is becoming the mainstream mate-
rial, and glass manufacturers are required to ensure a stable
supply of large sized glass substrates to meet demand.
AGC has been handling orders from China by shipping
from its existing production bases in Japan, Korea and
Taiwan. In China, an increasing number of TFT-LCD panel
manufacturers are planning to produce large sized panels,
and consequently demand for large sized glass substrates
is expected to grow substantially. In response to this trend,
AGC has set up a new facility to process large sized glass
substrates in China as a means of establishing a production
system that will allow the Group to fl exibly respond to growth
in the Chinese market in coordination with its existing opera-
tions in Asia.
“The Second Round of Globalization” is one of the major
.
focus points of AGC’s management policy
We look to strengthen and expand our businesses and pres-
ence in the fast-growing countries.
The Uniqlo Shinsaibashi Store building, which was opened in
October 2010, has a unique appearance, which looks like a
snow-white quilted down jacket. To create this eye-catching
exterior, sheets of ETFE fi lm are bonded together to cover
the huge walls. In the evening, LED lighting installed behind
the fi lm light up the liveliest downtown area in Osaka in multi-
colored illumination.
The AGC Group’s high-function fl uoropolymer Fluon™
ETFE Film (marketed under the “AFLEX™” brand in Japan) is
used in this wall structure, which is made of 79 pairs (a total
of 158) of fi lm sheets, each measuring 2.7meters square with
the thickness of 0.25mm.
Fluon™ ETFE Film is superb in terms of light-weight, dura-
bility, transparency, design fl exibility, among others. The fi lm
has been adopted in a number of world-famous construc-
tion projects, mainly overseas, including a soccer stadium in
Munich and the Japan Pavilion (Zi Can Dao) at EXPO 2010
Shanghai, prior to the recent application in this major apparel
store exterior, which marks the fi rst time Fluon™ has been
used for the similar
purpose in Japan.
UNIQLO
Shinsaibashi Store
THERMOTECT™ Ceramic Furnace Material
Helping Reduce Glass Furnace Energy
Starting up one of the world’s largest glass
production facilities in Russia
Industrial furnaces used for glass and steel production need
to provide high thermal resistance while maintaining high insu-
lation performance for long periods of time, as such features
will increase energy effi ciency and extend the product life
cycle. The THERMOTECT™ ceramic furnace material made
by AGC Ceramics Co., Ltd. has heat resistance as high as
1600°C, the maximum resistance set for furnace materials.
The heat insulation performance of this product is main-
tained even if used at a very high temperature for long peri-
ods. Conventional thermal insulating bricks and fi ber-added
insulating materials tend to crack due to damaged joints or
contracted fi bers causing heat leakage within several years,
but THERMOTECT™, a granular product which is mixed with
water and then shaped into a furnace brick, can resist ther-
mal contraction and
maintain high insulation
performance for long
periods of time. The
lighter furnace material
also contributes to re-
duce weight of applied
furnace.
THERMOTECT™ Ceramic
Furnace Material
In 2010, the AGC Group started operation of a glass pro-
duction facility, one of the largest such facilities in the world,
at its Klin plant, located approximately 80 km northwest of
Moscow.
The facility is intended to serve the fast-growing construc-
tion market in Russia, and can produce glass of between 4
and 12 mm in thickness. The plant can also manufacture high-
value-added products, since processing facilities for highly
insulating glass units, laminated glass and decorative glass
are installed within the premises With multiple technological
innovations for effi cient production of high quality products in-
corporated, the new facility has successfully reduced energy
consumption during production, compared with conventional
glass-melting furnaces. The AGC Group will continue to seek
opportunities to enter fast growing markets and expand its
production capac-
ity in these regions.
One of the world’s
largest glass production
facilities, which came
on line at the Klin plant
in Russia
AGC Report 2011
11
Research & Development
Research & Development
Creates the Future of the
AGC Group
Since its foundation, the AGC Group has developed its core technologies centered on the areas of glass, chemicals and
ceramics.
The AGC Group examines various trends with a long-term vision, sets the direction of our technology strategy, and strives
to build the foundations for growth set forth in
through the 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.
Technology Outlook
Long-term macro trends
(global trends)
trends in customers’ industries
AGC’s direction
Various trends
Technology Roadmap
Current/new business
domains
Current/new technology
domains
Business strategies
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.
Technology strategy
R & D Structure
Foundation/Basic Technology
Materials development:
Research Center
Production technology:
Production Technology Center
Equipment technology:
Engineering Center
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Commercialization
technology
Enhanced production
technology
Development Centers of
each In-House Company
Building foundations for growth through the 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
to build foundations for growth set forth in our
management policy.
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
① Group-wide promotion of solar business
② Glass-technology-driven company
③Measures against climate change
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12 AGC Report 2011
① 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 fi lm scatters light on its concave-
convex surface and absorbs 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 refl ective mirrors that maxi-
mize the energy refl ectance of solar concentrators for solar thermal power
generation system.
Glass substrate with TCO fi lm for
photovoltaic modules
Visible light
Near-infrared light
Glass
TCO
a-Si
Mechanism of thin-fi lm
silicon photovoltaic
module
Electrode on the
back surface
Glass mirrors for solar thermal generation
② Glass-technology-driven company
Improving the energy effi ciency of the glass production process
Total Oxygen Combustion
Method
By sending only oxygen to a glass melt-
ing furnace, it will reduce nitrogen oxide
emissions and improve energy effi cien-
cy.
In-fl ight melting technology
Granulated raw material mixtures are injected into a furnace and
instantaneously melted by a combustion fl ame or plasma. This
technology will enable halving CO2 emissions and energy con-
sumption during the production process.
Oxygen heated by heat exchanging
Conventional furnace
In-flight melting furnace
Energy efficiency
improved
Oxygen
Exhaust gas
Raw materials
Combustion burner
Melting
Refining
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Granulated raw materials
Raw
materials
High-speed
refining
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Glass melted
Glass melting furnace
Plasma in an in-fl ight melting furnace
③ Measures against climate change
CO2 recycling in the
glass production
process
Creating soda ash (a mate-
rial used mainly for glass
products) from CO2 in the
production process
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
Electrolysis
Exhaust gas
CO2
Injection
Caustic soda
Soda ash
Glass products
Plant
Recycling
Structure of the Sunbalance™ eco-glass
Special metal coating
Glass
Air layer
Spacer
Desiccant
Sealing agent
Special metal-coated
glass selectively
transmits or refl ects
light and heat, thereby
maintaining a
comfortable indoor
environment, cool in
summer and warm in
winter.
AGC’s Low-E glass is used in various locations
worldwide (Photo: Padova, Italy)
©AGC Glass Europe
AGC Report 2011
13
AGC Group around the World
As a global solutions provider that supplies products and materials in areas ranging from glass and
electronics to chemicals and ceramics, the AGC Group is engaged in business in Japan, Asia, Europe
and North America with the support of approximately 50,000 employees in roughly 30 countries and
regions worldwide.
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Asahi Glass Co., Ltd.
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AGC Global Network
Asahi Glass Co., Ltd.
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Japan
●AGC Glass Products Co., Ltd.
●AGC Glass Kenzai Co., Ltd.
●AGC Okinawa Glass Kenzai 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.
●AGC Polycarbonate Co., Ltd.
●Optical Coatings Japan
●IWAKI Houseware Co., Ltd.
●Ise Chemicals Corporation
●Keiyo Monomer Co., Ltd.
●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 Filtech 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.
14 AGC Report 2011
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. IWAKI Glass Indonesia
●P.T. Asahimas Chemical
●AGC Technology Solutions (Indonesia) Co., Ltd.
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 Display Glass（Kunshan）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 (China) Holdings Co., Ltd.
●AGC Shanghai Co., Ltd.
●AGC Technology Solutions (Kunshan) Co., LTD.
Korea
●Korea Autoglass Corporation
●Hanwook Techno Glass Co., Ltd.
●Asahi Glass Fine Techno Korea Co., Ltd.
●Asahi PD Glass Korea Co., Ltd.
●AGC Display Glass Ochang Co., Ltd.
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● Glass
● Chemicals ● Ceramics ● Others
● Electronics
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.
●Woodward Iodine Corporation
●AGC America, Inc.
●AGC Capital, Inc.
Canada
●AGC Flat Glass North America Ltd.
●AGC Automotive Canada, Inc.
Europe
Belgium
●AGC Glass Europe
●AGC Glass Europe Sales
●AGC Automotive Europe
●AGC Automotive Belgium
●AGC Europe
The Netherlands
●AGC Flat Glass Netherlands B.V.
The United Kingdom
●AGC Glass UK Ltd.
●AGC Chemicals Europe, Ltd.
Mexico
●AGC Automotive Glass Mexico, S.A. de C.V.
Czech Republic
●AGC Flat Glass Czech a.s., Clen AGC Group
●AGC Automotive Czech a.s.
Russia
●OJSC AGC Bor Glassworks
●AGC Flat Glass Klin LLC
France
●AGC France
Italy
●AGC Flat Glass Italia S.r.l
●AGC Automotive Italia S.r.l
Spain
●AGC Flat Glass Iberica S.A.
North America
5%
Sales by region
(consolidated)
Europe
15%
Asia
31%
Japan
49%
Percentage of employees
by region (consolidated)
Europe
28%
Japan
25%
North America
7%
Asia
40%
*Year ended December 2010
*Percentage of sales by region is before elimination.
Germany
●AGC Automotive Germany Gmbh
Hungary
●AGC Automotive Hungary Ltd.
Poland
●AGC Gdansk Sp. z o.o.
Turkey
● AGC Otomotiv Adapazari Üretim, Sanayi Ve
Ticaret Anonim Sirketi
As of end of March 2011, including equity method affi li-
ates, etc., not using the “AGC” brand name.
AGC Report 2011
15
Board of Directors, Corporate Auditors and
Executive Offi cers
Board of Directors
Kazuhiko Ishimura
Representative Director
President & CEO
Yuji Nishimi
Representative Director
Senior Executive Vice
President
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
Masahiro Sakane
Director (Outside)
Chairman of the Board,
Komatsu Ltd.
Executive Offi cers
● President & CEO
Kazuhiko Ishimura
CEO; GM of Group Strategy Offi ce
● Senior Executive Vice Presidents
Yuji Nishimi
Overall business management (AGC Group
improvement activities, electronics business
and business development);
Deputy GM of Group Strategy Offi ce
Akio Endo
President of Glass Company
● Executive Vice President
Katsuhisa Kato
CTO; Deputy GM of Group Strategy Offi ce
Marehisa Ishiko
Regional President of North America,
Glass Company
Yoshiaki Tamura
President of Electronics Company;
GM of Display General Div., Electronics
Company
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
Masayuki Kamiya
Chief Representative of AGC Group for
China
● Executive Offi cers
Tadayuki Oi
GM of Production Technology Center
Yasumasa Nakao
Vice President, Technology,
Glass Company
Shinichi Kawakami
Deputy GM of Group Strategy Offi ce
Takuya Shimamura
President of Chemicals Company
Tetsuo Tatsuno
Vice President, Planning and
Coordination, Glass Company
● 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
16 AGC Report 2011
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
Kimikazu Ichikawa
Regional President of Japan/Asia Pacifi c,
Glass Company
Yoshinori Kobayashi
GM of Electronics General Div., Electronics
Company
Kazuyoshi Watanabe
GM of Production Management Div., Display
General Div., Electronics Company
Corporate
Auditors
Takashi Terashima
Izumi Tamai (Outside)
Shigeru Hikuma (Outside)
Kenji Haga (Outside)
As of March 30, 2011
Milestones 1907 - 2011
History of AGC Group
Products & Technologies of AGC Group
New medium-term management plan
started.
2010
Management policy
introduced.
2008
Group brand unified as “AGC.”
2007
Asahi Glass Company’s 100th
anniversary celebrated
2002–
Toward Global
Management
management policy introduced.
2004
Glaverbel made into a wholly owned subsidiary.
2002
AGC Group Vision
formulated.
Global In-House Company System introduced.
U.S. glassmaker AFG Industries, Inc. acquired.
The “Blue Planet Prize” to honor those who help solve
environmental problems created by the Asahi Glass
Foundation.
1992
1991
Belgian glassmaker Glaverbel S.A.
acquired.
1981
Manufacture of
automotive glass begun.
The Indo-Asahi Glass Co., Ltd.
established in India.
1956
Asahi Glass entered the Cathode Ray
Tube (CRT) glass bulb business.
1954
Caustic soda production using lime process begun.
1933
2011
2010
Dragontrail™ glass for chemical
strengthening launched.
UV Verre Premium™ UV blocking
tempered glass for automotive front
door windows introduced.
Sales of FONTEX®, a commercial
plastic optical fiber enabling the
world’s highest transmission speed,
launched.
2006
2004
Fluon® highly functional ETFE fluoropolymer film selected for
the main stadium and the venue for aquatics events at the
Summer Games in Beijing.
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) begun.
1998 Mass production of a new alkali-free glass for TFT LCDs
begun.
1990
“CYTOP™” transparent fluoropolymer developed.
1950–2001
Era of Growth
and Expansion
1980
1975
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 begun.
Ion-exchange membrane method for manufacturing caustic
soda developed.
Production of float glass begun.
Asahi Glass diversified into organic
chemicals, propylene oxide and
propylene glycol production started.
Production of double-glazing units begun.
Production of tempered glass and laminated glass begun.
1966
1961
1954
1938
Shoko Glass Co., Ltd. established in
China.
1925
Production of refractories begun at
the Amagasaki Plant.
1916
Asahi Glass Company founded in
Amagasaki, Hyogo Pref.
1907
1928
Production of ordinary sheet glass using the Fourcault
process begun.
1907–1949
The Early Years
1917
First production of soda ash using the ammonium method
in Japan.
1909
Production of Belgian-type hand-
blown sheet glass, the first sheet glass
successfully manufactured in Japan,
begun.
AGC Report 2011
17
3
5
2
4
6
1
7
❶ MyZeil shopping mall, Frankfurt, Germany /
©AGC Glass Europe
❷ Glass-ceramics substrate for LED lighting
(GCHP™)
❸ Ceramic sputtering targets
❹ Dragontrail™
❺ UV Verre Premium™
❻ Solar panels
*For illustrative purpose only
❼ Fluon® ETFE Film
Communication Tools
The AGC Group promotes communication with
stakeholders through various tools.
General corporate activities
“AGC Report”
(This report)
CSR activities
“CSR Report”
Financial information
“Financial Review”
Reports the AGC Group’s
business outline and financial
information including
aconsolidated financial
statement.
Company brochure
introducing the AGC Group’s
vision as well as business
highlights.
Introduces the AGC Group’s
social responsibilities.
Comprehensive information
Website
Offers a broad introduction of the AGC Group through timely information
disclosure.
This website offers access to the websites of major group companies.
AGC Group Website
http://www.agc-group.com/en/
AGC CSR Website
http://www.agc.com/english/csr/
AGC Investor Relations Website
http://www.agc.com/english/ir/
URL: http://www.agc-group.com
Issued June 2011
*Soy ink is used for
this Report
The paper used for printing this report is made with wood
from forest thinning.
“Morino Chonai-Kai” (Forest Neighborhood Association) —
Supporting sound forest management.