A
G
C
R
e
p
o
r
t
2
0
1
2
AGC Report 2012
AGC Report 2012
URL: http://www.agc-group.com/en/
URL: http://www.agc-group.com/en/
1-5-1, Marunouchi, Chiyoda-ku, Tokyo 100-8405, JAPAN
1-5-1, Marunouchi, Chiyoda-ku, Tokyo 100-8405, JAPAN
Corporate Communications
Corporate Communications
& Investor Relations Office
& Investor Relations Office
Tel: +81-3-3218-5603 Fax: +81-3-3218-5390
Tel: +81-3-3218-5603 Fax: +81-3-3218-5390
E-mail: info.ad@agc.com
E-mail: info.ad@agc.com
CSR Office
CSR Office
Tel: +81-3-3218-5282 Fax: +81-3-3218-7801
Tel: +81-3-3218-5282 Fax: +81-3-3218-7801
E-mail: csr-info@agc.com
E-mail: csr-info@agc.com
Published in June 2012
Published in June 2012
(Next report scheduled to be published in June 2013)
(Next report scheduled to be published in June 2013)
Printed on paper made with wood
Printed on paper made with wood
from forest thinning. “Morino
from forest thinning. “Morino
Chonai-Kai” (Forest Neighborhood
Chonai-Kai” (Forest Neighborhood
Association)—Supporting sound
Association)—Supporting sound
forest management.
forest management.
All rights reserved. © 2012, Asahi Glass Co., Ltd.
All rights reserved. © 2012, Asahi Glass Co., Ltd.
AKT_1206-0362_ 旭硝子 CSR 英文表紙 _ おもて _12/06/20 SK
Reporting and Editorial Policy
Reporting and Editorial Policy
Board of Directors, Corporate Auditors and Executive Officers
Board of Directors, Corporate Auditors and Executive Officers
Contents
Contents
Milestones
Milestones
Board of Directors
Board of Directors
In this report, the AGC Group clearly communicates its growth strategy to stakeholders, in
In this report, the AGC Group clearly communicates its growth strategy to stakeholders, in
accordance with its corporate mission to “Look Beyond” to make the world a brighter place.
accordance with its corporate mission to “Look Beyond” to make the world a brighter place.
History of AGC Group
History of AGC Group
Products & Technologies of AGC Group
Products & Technologies of AGC Group
23
23
Chapter 1
Chapter 1
From this fiscal year onward, the AGC Group will combine its AGC
Report (company and business information) and CSR Report. In this
report, the Group aims to clearly communicate to stakeholders its
growth strategy of effectively advancing its business initiatives and
CSR goals as an integrated whole under the corporate mission to
“Look Beyond” to make the world a brighter place, as outlined in
the Group Vision.
From this fiscal year onward, the AGC Group will combine its AGC
Report (company and business information) and CSR Report. In this
report, the Group aims to clearly communicate to stakeholders its
growth strategy of effectively advancing its business initiatives and
CSR goals as an integrated whole under the corporate mission to
Yuji Nishimi
Kazuhiko Ishimura
Kazuhiko Ishimura
“Look Beyond” to make the world a brighter place, as outlined in
Representative Director
Representative Director
Representative Director
the Group Vision.
Senior Executive Vice President
President & CEO
President & CEO
The AGC Group hopes to give its stakeholders a comprehen-
The AGC Group hopes to give its stakeholders a comprehen-
sive understanding of the various initiatives it promotes as a busi-
sive understanding of the various initiatives it promotes as a busi-
ness that contributes to sustainable society.
ness that contributes to sustainable society.
Yuji Nishimi
Representative Director
Senior Executive Vice President
This report has been compiled in two chapters.
This report has been compiled in two chapters.
In Chapter 1 “Business Overview,” the report presents business
In Chapter 1 “Business Overview,” the report presents business
summaries and strategies, as well as key achievements in the
summaries and strategies, as well as key achievements in the
Group’s three major businesses—glass, electronics and chemicals.
Group’s three major businesses—glass, electronics and chemicals.
Takashi Fujino
Director
In Chapter 2 “Responsibilities to Our Stakeholders,” the report
Senior Executive Officer
discusses the social responsibilities fulfilled by the AGC Group,
based on the core themes cited in ISO 26000.
In Chapter 2 “Responsibilities to Our Stakeholders,” the report
discusses the social responsibilities fulfilled by the AGC Group,
based on the core themes cited in ISO 26000.
Katsuhisa Kato
Katsuhisa Kato
Representative Director
Representative Director
Executive Vice President
Executive Vice President
Takashi Fujino
Director
Senior Executive Officer
An Array of Tools Helps the Group Deepen its Communication with Stakeholders
An Array of Tools Helps the Group Deepen its Communication with Stakeholders
Financial Information Tools
Financial Information Tools
Non-Financial Information Tools
Non-Financial Information Tools
Kunihiro Matsuo
Kunihiro Matsuo
Director (Outside)
Director (Outside)
[Attorney At Law,
[Attorney At Law,
Kunihiro Matsuo Law Office]
Kunihiro Matsuo Law Office]
Financial Review
Financial Review
(PDF file only)
(PDF file only)
For Understanding
AGC Group’s Growth Strategy
For Understanding
AGC Group’s Growth Strategy
Hajime Sawabe
Hajime Sawabe
Director (Outside)
Director (Outside)
[Representative Director,
[Representative Director,
Chairman, TDK Corporation]
Chairman, TDK Corporation]
Masahiro Sakane
Masahiro Sakane
Director (Outside)
Director (Outside)
[Chairman of the Board,
[Chairman of the Board,
Komatsu Ltd.]
Komatsu Ltd.]
CSR Website
www.agc.com/english/csr/
CSR Website
www.agc.com/english/csr/
CSR Information
CSR Information
Supplement
Supplement
(PDF file only)
(PDF file only)
Executive Officers Corporate
Executive Officers Corporate
Repor ts the AGC Group’ s
Repor ts the AGC Group’ s
business outline and financial
business outline and financial
information including a con-
information including a con-
solidated financial statement
solidated financial statement
President & CEO
President & CEO
Kazuhiko Ishimura
Kazuhiko Ishimura
CEO
CEO
Marehisa Ishiko
Marehisa Ishiko
Regional President of North
Regional President of North
America, Glass Company
America, Glass Company
AGC Report 2012
(This report)
AGC Report 2012
(This report)
Yoshiaki Tamura
President of Electronics
Company;
For Comprehensive Information
GM of Display General Div.,
Electronics Company
Yoshiaki Tamura
President of Electronics
Company;
For Comprehensive Information
GM of Display General Div.,
Electronics Company
Senior Executive
Senior Executive
Vice Presidents
Vice Presidents
Yuji Nishimi
Yuji Nishimi
Overall business management
Overall business management
(AGC Group improvement
(AGC Group improvement
activities, electronics business
activities, electronics business
and business development)
and business development)
Akio Endo
Akio Endo
Scope of Report
Scope of Report
President of Glass Company
President of Glass Company
Jean-François Heris
Jean-François Heris
Regional President of Europe,
Regional President of Europe,
Glass Company; President &
Glass Company; President &
CEO of AGC Glass Europe
CEO of AGC Glass Europe
Takashi Fujino
Takashi Fujino
Overall business management
Overall business management
(Finance); GM of Office of the
(Finance); GM of Office of the
President
President
Reporting Period
Reporting Period
Executive Vice
Executive Vice
Fiscal 2011 (Jan.–Dec. 2011)
Fiscal 2011 (Jan.–Dec. 2011)
Presidents
Presidents
Some information includes content from both fiscal 2010 and 2012.
Some information includes content from both fiscal 2010 and 2012.
Katsuhisa Kato
Katsuhisa Kato
Organizations Covered in the Report
Overall business management
Overall business management
Asahi Glass and its 179 consolidated subsidiaries (Group compa-
(Technology); GM of Technology
(Technology); GM of Technology
General Division
General Division
nies) in and outside Japan
Organizations Covered in the Report
Asahi Glass and its 179 consolidated subsidiaries (Group compa-
nies) in and outside Japan
Masayuki Kamiya
Masayuki Kamiya
Chief Representative of AGC
Chief Representative of AGC
Group for China
Group for China
Primary Notation and Report Targets Used in the Report
Executive Officers
Executive Officers
Primary Notation and Report Targets Used in the Report
Tadayuki Oi
Tadayuki Oi
GM of Production Technology
GM of Production Technology
Same as “Organizations Covered in the
Same as “Organizations Covered in the
Center, Technology General
Center, Technology General
Report” mentioned above
Report” mentioned above
Division
Division
Kei Yonamoto
Kei Yonamoto
Brazil Global Project
Brazil Global Project
The AGC Group
The AGC Group
Team Leader
Team Leader
Corporate Auditors
Corporate Auditors
Extracted and compiled based
on policies and promotional
measures related to non-financial
data and CSR activities
Extracted and compiled based
on policies and promotional
measures related to non-financial
data and CSR activities
Takashi Terashima
Takashi Terashima
Izumi Tamai (Outside)
Izumi Tamai (Outside)
Shigeru Hikuma
(Outside)
Shigeru Hikuma
(Outside)
Kenji Haga (Outside)
Kenji Haga (Outside)
Introducing social responsi-
Introducing social responsi-
bilities shouldered by the
bilities shouldered by the
AGC Group
AGC Group
Shinichi Kawakami
Shinichi Kawakami
GM of Human Resources &
GM of Human Resources &
Administration Office
Administration Office
Shinji Miyaji
Shinji Miyaji
Group Leader of Corporate
Group Leader of Corporate
Planning Group, Office of the
Planning Group, Office of the
President
President
Takuya Shimamura
Takuya Shimamura
AGC Group Website
AGC Group Website
Kimikazu Ichikawa
Kimikazu Ichikawa
President of Chemicals
President of Chemicals
http://www.agc-group.com/en/
http://www.agc-group.com/en/
Regional President of
Regional President of
Company
Company
Japan/Asia Pacific, Glass
Japan/Asia Pacific, Glass
Communicating information about the AGC Group more
Communicating information about the AGC Group more
Tetsuo Tatsuno
Tetsuo Tatsuno
Company
Company
widely, timely, and in more detail
widely, timely, and in more detail
Vice President, Planning and
Vice President, Planning and
Coordination, Glass Company
Coordination, Glass Company
Yoshinori Kobayashi
Yoshinori Kobayashi
GM of Electronics General Div.,
GM of Electronics General Div.,
Electronics Company
Electronics Company
Eisuke Yanagisawa
GM of Legal
Eisuke Yanagisawa
GM of Legal
Hiroshi Akagi
Hiroshi Akagi
GM of Business Management
GM of Business Management
General Div., Chemicals
General Div., Chemicals
Company
Company
Kazuyoshi Watanabe
Kazuyoshi Watanabe
GM of Technology
GM of Technology
Non-Financial Information Guidelines
Non-Financial Information Guidelines
Development General Div.,
Development General Div.,
Electronics Company
Electronics Company
• ISO 26000: 2010 Guidance on social responsibility
• ISO 26000: 2010 Guidance on social responsibility
Yoshinori Hirai
Yoshinori Hirai
GM of Business Development
GM of Business Development
Office
Office
• Sustainable Reporting Guidelines Version 3.1 (G3.1), Global
• Sustainable Reporting Guidelines Version 3.1 (G3.1), Global
Reporting Initiative (GRI)
Reporting Initiative (GRI)
Tokio Matsuo
Tokio Matsuo
GM of CSR Office
GM of CSR Office
• Environmental Reporting Guidelines (2012), Japanese Ministry of
• Environmental Reporting Guidelines (2012), Japanese Ministry of
the Environment
the Environment
Akinobu Shimao
Akinobu Shimao
President of AGC Ceramics
President of AGC Ceramics
Co., Ltd.
Co., Ltd.
Date of Publication
Date of Publication
Kihachiro Okamoto
Vice President, Automotive,
Glass Company
Kihachiro Okamoto
Vice President, Automotive,
Glass Company
Tomoya Takigawa
Tomoya Takigawa
June 2012
June 2012
GM of Research Center,
GM of Research Center,
Last date of publication: AGC Report: June 2011 CSR Report: July 2011
Technology General Division
Technology General Division
Shigekuni Inoue
Shigekuni Inoue
GM of Electronic Glass General
GM of Electronic Glass General
Div., Electronics Company
Div., Electronics Company
Last date of publication: AGC Report: June 2011 CSR Report: July 2011
The AGC Group (Japan)
Senior Executive
Senior Executive
The AGC Group (Japan)
Officers
Officers
Asahi Glass/the Company
Asahi Glass/the Company
Shukichi Umemoto
Shukichi Umemoto
GM of Finance & Control Office
GM of Finance & Control Office
The AGC Group (Asia)
The AGC Group (Asia)
Group companies in Japan including
Group companies in Japan including
Yasumasa Nakao
Yasumasa Nakao
Asahi Glass Co. Ltd.
Asahi Glass Co. Ltd.
Vice President, Technology,
Vice President, Technology,
AGC Asahi Glass Co. Ltd. (on an
AGC Asahi Glass Co. Ltd. (on an
Glass Company
Glass Company
unconsolidated basis)
unconsolidated basis)
Takashi Shimbo
Takashi Shimbo
President Director of AGC
President Director of AGC
(China) Holdings Co., Ltd.
(China) Holdings Co., Ltd.
Group companies in Asia excluding the
AGC Group (Japan)
Group companies in Asia excluding the
AGC Group (Japan)
Regarding Future Assumptions, Forecasts and Plans
Future perspectives described in this report are based on the latest
information available to the AGC Group at the time of editing this
report. Nevertheless, please note that results and consequences may
vary with fluctuations in the business environment.
Regarding Future Assumptions, Forecasts and Plans
Future perspectives described in this report are based on the latest
information available to the AGC Group at the time of editing this
report. Nevertheless, please note that results and consequences may
vary with fluctuations in the business environment.
As of March 29, 2012
As of March 29, 2012
67
67
1
1
AGC Report 2012
AGC Report 2012
AGC Report 2012
AGC Report 2012
AKT_1206-0362_ 旭硝子 CSR 英文表紙 _ ウラ _12/06/20 SK
AKT_1206-0362_ 旭硝子 CSR 英文表紙 _ ウラ _12/06/20 SK
1
1
Reporting and Editorial Policy/Contents
Reporting and Editorial Policy/Contents
3
3
Overview of the AGC Group
Overview of the AGC Group
4
4
Our Vision and Shared Values
Our Vision and Shared Values
5
5
Financial and Non-Financial Highlights
Financial and Non-Financial Highlights
7
7
CEO Message
CEO Message
2002
2002
–
–
We Will Continue to Develop the AGC Group
We Will Continue to Develop the AGC Group
with the Goal to be an Outstanding Global
with the Goal to be an Outstanding Global
“ -2012”
“ -2012”
started.
started.
2010 • New medium-term management plan
2010 • New medium-term management plan
Enterprise that is Highly Profitable,
Enterprise that is Highly Profitable,
2008 • Management policy introduced.
2008 • Management policy introduced.
Toward
Toward
Global
Global
Fast-Growing and Contributes to the
Fast-Growing and Contributes to the
Management
Management
2007 • Group brand unified as “AGC.”
2007 • Group brand unified as “AGC.”
Realization of a Sustainable Society
Realization of a Sustainable Society
• Asahi Glass Company’s 100th
• Asahi Glass Company’s 100th
anniversary celebrated.
anniversary celebrated.
9
9
CEO Interview
CEO Interview
2004 • “JIKKO” management policy introduced.
2004 • “JIKKO” management policy introduced.
Concerning the Medium-Term Management
Concerning the Medium-Term Management
2002 • Glaverbel made into a wholly owned subsidiary.
2002 • Glaverbel made into a wholly owned subsidiary.
Plan
Plan
“ -2012”
“ -2012”
• AGC Group Vision formulated.
• AGC Group Vision formulated.
• Global In-house Company System introduced.
• Global In-house Company System introduced.
13
13
Dialogue
Dialogue
Conversation with the Winners of the Blue Planet Prize
Conversation with the Winners of the Blue Planet Prize
Looking to the Future of the Global Environment
Looking to the Future of the Global Environment
Aiming to Create a Sustainable Society
Aiming to Create a Sustainable Society
1992 • U.S. glassmaker AFG Industries, Inc. acquired.
1992 • U.S. glassmaker AFG Industries, Inc. acquired.
• The “Blue Planet Prize” to honor those who help solve
• The “Blue Planet Prize” to honor those who help solve
environmental problems created by the Asahi Glass
environmental problems created by the Asahi Glass
Foundation.
Foundation.
1981 • Belgian glassmaker Glaverbel
1981 • Belgian glassmaker Glaverbel
S.A. acquired. (photo )
S.A. acquired. (photo )
1
1
39 Chapter 2
39 Chapter 2
1950
1950
–
–
2001
2001
Feature 1
Feature 1
15
15
Contributing to Sustainable Development with
Contributing to Sustainable Development with
Era of
Era of
Growth and
Growth and
The Brazil Project
The Brazil Project
Expansion
Expansion
19 Feature 2
19 Feature 2
1956 • Manufacture of automotive glass
1956 • Manufacture of automotive glass
begun. (photo )
begun. (photo )
2
2
Driving the Evolution of Smartphones and Tablet PCs
Driving the Evolution of Smartphones and Tablet PCs
• The Indo-Asahi Glass Co., Ltd.
• The Indo-Asahi Glass Co., Ltd.
The Future is Now with
The Future is Now with
1954 • Asahi Glass entered the Cathode
1954 • Asahi Glass entered the Cathode
established in India.
established in India.
Ray Tube (CRT) glass bulb
Ray Tube (CRT) glass bulb
™
™
business. (photo )
business. (photo )
3
3
1907
1907
–
–
1949
1949
The Early
The Early
Years
Years
1933 • Caustic soda production using
1933 • Caustic soda production using
lime process begun.
lime process begun.
1925 • Shoko Glass Co., Ltd. established
1925 • Shoko Glass Co., Ltd. established
in China. (photo )
in China. (photo )
4
4
1916 • Production of refractories begun
1916 • Production of refractories begun
at the Amagasaki Plant.
at the Amagasaki Plant.
1907 • Asahi Glass Company founded in
1907 • Asahi Glass Company founded in
Amagasaki, Hyogo Prefecture.
Amagasaki, Hyogo Prefecture.
(photo )
(photo )
5
5
2011 • “Dragontrail™” glass for chemical
2011 • “Dragontrail™” glass for chemical
Business Overview
Business Overview
strengthening launched. (photo )
strengthening launched. (photo )
• Development of 0.1-millimeter-thick
• Development of 0.1-millimeter-thick
6
6
25
25
Glass Operations
Glass Operations
“ultra-thin glass”—the world’s
“ultra-thin glass”—the world’s
thinnest—using the float method.
thinnest—using the float method.
29
29
Electronics Operations
Electronics Operations
(photo )
(photo )
7
7
33
33
Chemicals Operations
Chemicals Operations
automotive door windows
automotive door windows
• “UV Verre Premium™” glass for
• “UV Verre Premium™” glass for
introduced.
introduced.
37
37
Ceramics/Other Operations
Ceramics/Other Operations
38
38
2010 • Sales of “FONTEX™”, a
2010 • Sales of “FONTEX™”, a
The AGC Group and Clean Energy
The AGC Group and Clean Energy
commercial plastic optical fiber
commercial plastic optical fiber
enabling the world’s highest
enabling the world’s highest
transmission speed, launched.
transmission speed, launched.
2006 • “Fluon® ETFE Film” selected for the main stadium and
2006 • “Fluon® ETFE Film” selected for the main stadium and
the venue for aquatics games at a global sport event in
the venue for aquatics games at a global sport event in
Beijing.
Beijing.
1999 • Mass production of “PD200” glass substrate for plasma
1999 • Mass production of “PD200” glass substrate for plasma
display panels (PDPs) begun.
display panels (PDPs) begun.
1998 • Mass production of a new alkali-free glass for TFT LCDs
1998 • Mass production of a new alkali-free glass for TFT LCDs
begun.
begun.
1990 • “CYTOP™” transparent fluoropolymer developed.
1990 • “CYTOP™” transparent fluoropolymer developed.
1980 • AZEC System of caustic soda manufacturing using
1980 • AZEC System of caustic soda manufacturing using
Responsibilities to
Responsibilities to
ion-exchange membrane developed.
ion-exchange membrane developed.
1
1
1975 • Production of “Asahi Guard™” fluorinated water and oil
1975 • Production of “Asahi Guard™” fluorinated water and oil
repellents and “Aflon™COP” fluorinated resins begun.
repellents and “Aflon™COP” fluorinated resins begun.
Our Stakeholders
Our Stakeholders
• Ion-exchange membrane method for manufacturing
• Ion-exchange membrane method for manufacturing
caustic soda developed.
caustic soda developed.
41
41
Targets and Results
Targets and Results
1966 • Production of float glass begun.
1966 • Production of float glass begun.
43
43
Organizational Governance
Organizational Governance
(photo )
(photo )
8
8
2
2
47
47
Human Rights and Labor Practices
Human Rights and Labor Practices
1961 • Asahi Glass diversified into
1961 • Asahi Glass diversified into
52
52
The Environment
The Environment
oxide and propylene glycol
oxide and propylene glycol
organic chemicals, propylene
organic chemicals, propylene
57
57
Fair Operating Practices and Consumer Issues
Fair Operating Practices and Consumer Issues
production started.
production started.
59
59
Community Involvement and Development
Community Involvement and Development
1954 • Production of double-glazing units (Pairglass™) begun.
1954 • Production of double-glazing units (Pairglass™) begun.
62
62
3
3
CSR Web Site Access
CSR Web Site Access
1938 • Production of tempered glass and laminated glass begun.
1938 • Production of tempered glass and laminated glass begun.
63
63
Research & Development
Research & Development
1928 • Production of ordinary sheet glass using the Fourcault
1928 • Production of ordinary sheet glass using the Fourcault
65
65
Global Network
Global Network
process begun.
process begun.
67
67
Board of Directors, Corporate Auditors and
Board of Directors, Corporate Auditors and
1917 • First production of soda ash using the ammonium
1917 • First production of soda ash using the ammonium
4
4
Executive Officers
Executive Officers
method in Japan.
method in Japan.
68
68
Milestones
Milestones
1909 • Production of Belgian-type
1909 • Production of Belgian-type
hand-blown sheet glass (photo )
hand-blown sheet glass (photo )
9
9
• The first sheet glass successfully
• The first sheet glass successfully
manufactured in Japan, begun.
manufactured in Japan, begun.
5
5
6
6
7
7
8
8
9
9
AGC Report 2012 2
AGC Report 2012 2
AGC Report 2012 68
AGC Report 2012 68
Reporting and Editorial Policy
Reporting and Editorial Policy
Contents
Contents
In this report, the AGC Group clearly communicates its growth strategy to stakeholders, in
In this report, the AGC Group clearly communicates its growth strategy to stakeholders, in
accordance with its corporate mission to “Look Beyond to make the world a brighter place.”
accordance with its corporate mission to “Look Beyond to make the world a brighter place.”
From this fiscal year onward, the AGC Group will combine its AGC
From this fiscal year onward, the AGC Group will combine its AGC
This report has been compiled in two chapters.
This report has been compiled in two chapters.
Report (company and business information) and CSR Report. In this
Report (company and business information) and CSR Report. In this
report, the Group aims to clearly communicate to stakeholders its
report, the Group aims to clearly communicate to stakeholders its
In Chapter 1 “Business Overview,” the report presents business
In Chapter 1 “Business Overview,” the report presents business
growth strategy of effectively advancing its business initiatives and
growth strategy of effectively advancing its business initiatives and
summaries and strategies, as well as key achievements in the
summaries and strategies, as well as key achievements in the
CSR goals as an integrated whole under the corporate mission to
CSR goals as an integrated whole under the corporate mission to
Group’s three major businesses—glass, electronics and chemicals.
Group’s three major businesses—glass, electronics and chemicals.
“Look Beyond” to make the world a brighter place, as outlined in
“Look Beyond” to make the world a brighter place, as outlined in
the Group Vision.
the Group Vision.
In Chapter 2 “Responsibilities to Our Stakeholders,” the report
In Chapter 2 “Responsibilities to Our Stakeholders,” the report
The AGC Group hopes to give its stakeholders a comprehen-
The AGC Group hopes to give its stakeholders a comprehen-
discusses the social responsibilities fulfilled by the AGC Group,
discusses the social responsibilities fulfilled by the AGC Group,
sive understanding of the various initiatives it promotes as a busi-
sive understanding of the various initiatives it promotes as a busi-
based on the core themes cited in ISO 26000.
based on the core themes cited in ISO 26000.
ness that contributes to sustainable society.
ness that contributes to sustainable society.
An Array of Tools Helps the Group Deepen its Communication with Stakeholders
An Array of Tools Helps the Group Deepen its Communication with Stakeholders
Financial Information Tools
Financial Information Tools
Non-Financial Information Tools
Non-Financial Information Tools
For Understanding
For Understanding
AGC Group’s Growth Strategy
AGC Group’s Growth Strategy
Financial Review
Financial Review
(PDF file only)
(PDF file only)
Repor ts the AGC Group’ s
Repor ts the AGC Group’ s
business outline and financial
business outline and financial
information including a con-
information including a con-
solidated financial statement
solidated financial statement
AGC Report 2012
AGC Report 2012
(This report)
(This report)
CSR Homepage
CSR Homepage
www.agc.com/english/csr/
www.agc.com/english/csr/
CSR Information
CSR Information
Supplement
Supplement
(PDF file only)
(PDF file only)
Introducing social responsi-
Introducing social responsi-
Extracted and compiled based
Extracted and compiled based
bilities shouldered by the
bilities shouldered by the
on all policies and promotional
on all policies and promotional
AGC Group
AGC Group
measures related to non-financial
measures related to non-financial
data and CSR activities
data and CSR activities
For Comprehensive Information
For Comprehensive Information
AGC Group Website
AGC Group Website
http://www.agc-group.com/en/
http://www.agc-group.com/en/
Communicating information about the AGC Group more
Communicating information about the AGC Group more
widely, timely, and in more detail
widely, timely, and in more detail
Scope of Report
Scope of Report
Reporting Period
Reporting Period
Fiscal 2011 (Jan.–Dec. 2011)
Fiscal 2011 (Jan.–Dec. 2011)
Non-Financial Information Guidelines
Non-Financial Information Guidelines
• ISO 26000: 2010 Guidance on social responsibility
• ISO 26000: 2010 Guidance on social responsibility
• Sustainable Reporting Guidelines Version 3.1 (G3.1), Global
• Sustainable Reporting Guidelines Version 3.1 (G3.1), Global
• Environmental Reporting Guidelines (2012), Japanese Ministry of
• Environmental Reporting Guidelines (2012), Japanese Ministry of
Some information includes content from both fiscal 2010 and 2012.
Some information includes content from both fiscal 2010 and 2012.
Reporting Initiative (GRI)
Reporting Initiative (GRI)
Organizations Covered in the Report
Organizations Covered in the Report
panies”) in and outside Japan
panies”) in and outside Japan
Asahi Glass and its 179 consolidated subsidiaries (“Group com-
Asahi Glass and its 179 consolidated subsidiaries (“Group com-
the Environment
the Environment
Primary Notation and Report Targets Used in the Report
Primary Notation and Report Targets Used in the Report
Date of Publication
Date of Publication
The AGC Group
The AGC Group
Same as “Organizations Covered in the
Same as “Organizations Covered in the
Report” mentioned above
Report” mentioned above
July 2012
July 2012
The AGC Group (Japan)
The AGC Group (Japan)
Asahi Glass/the Company
Asahi Glass/the Company
Domestic (Japan) Group companies
Domestic (Japan) Group companies
including Asahi Glass Co. Ltd.
including Asahi Glass Co. Ltd.
AGC Asahi Glass Co. Ltd. (on an
AGC Asahi Glass Co. Ltd. (on an
unconsolidated basis)
unconsolidated basis)
The AGC Group (Asia)
The AGC Group (Asia)
Group companies in Asia excluding the
Group companies in Asia excluding the
AGC Group (Japan)
AGC Group (Japan)
Last date of publication: AGC Report: June 2011 CSR Report: July 2011
Last date of publication: AGC Report: June 2011 CSR Report: July 2011
Regarding Future Assumptions, Forecasts and Plans
Regarding Future Assumptions, Forecasts and Plans
Future perspectives described in this report are based on the latest
Future perspectives described in this report are based on the latest
information available to the AGC Group at the time of editing this
information available to the AGC Group at the time of editing this
report. Nevertheless, please note that results and consequences may
report. Nevertheless, please note that results and consequences may
vary with fluctuations in the business environment.
vary with fluctuations in the business environment.
1
1
3
3
4
4
5
5
7
7
9
9
Reporting and Editorial Policy/Contents
Reporting and Editorial Policy/Contents
Overview of the AGC Group
Overview of the AGC Group
Our Vision and Shared Values
Our Vision and Shared Values
Financial and Non-Financial Highlights
Financial and Non-Financial Highlights
CEO Message
CEO Message
We Will Continue to Develop the AGC Group
We Will Continue to Develop the AGC Group
with the Goal to be an Outstanding Global
with the Goal to be an Outstanding Global
Enterprise that is Highly Profitable,
Enterprise that is Highly Profitable,
Fast-Growing and Contributes to the
Fast-Growing and Contributes to the
Realization of a Sustainable Society
Realization of a Sustainable Society
CEO Interview
CEO Interview
Concerning the Medium-Term Management
Concerning the Medium-Term Management
Plan
Plan
“ -2012”
“ -2012”
13
13
Dialogue
Dialogue
Conversation with the Winners of the Blue Planet Prize
Conversation with the Winners of the Blue Planet Prize
Looking to the Future of the Global Environment
Looking to the Future of the Global Environment
Aiming to Create a Sustainable Society
Aiming to Create a Sustainable Society
15
15
Feature 1
Feature 1
Contributing to Sustainable Development with
Contributing to Sustainable Development with
The Brazil Project
The Brazil Project
19 Feature 2
19 Feature 2
Driving the Evolution of Smartphones and Tablet PCs
Driving the Evolution of Smartphones and Tablet PCs
The Future is Now with
The Future is Now with
™
™
23
23
25
25
29
29
33
33
37
37
38
38
Chapter 1
Chapter 1
Business Overview
Business Overview
Glass Operations
Glass Operations
Electronics Operations
Electronics Operations
Chemicals Operations
Chemicals Operations
Ceramics/Other Operations
Ceramics/Other Operations
The AGC Group and Clean Energy
The AGC Group and Clean Energy
39 Chapter 2
39 Chapter 2
Responsibilities to
Responsibilities to
Our Stakeholders
Our Stakeholders
Targets and Results
Targets and Results
Organizational Governance
Organizational Governance
Human Rights and Labor Practices
Human Rights and Labor Practices
The Environment
The Environment
Fair Operating Practices and Consumer Issues
Fair Operating Practices and Consumer Issues
Community Involvement and Development
Community Involvement and Development
CSR Web Site Access
CSR Web Site Access
Research & Development
Research & Development
Global Network
Global Network
Board of Directors, Corporate Auditors and
Board of Directors, Corporate Auditors and
Executive Officers
Executive Officers
41
41
43
43
47
47
52
52
57
57
59
59
62
62
63
63
65
65
67
67
68
68
Milestones
Milestones
1
1
AGC Report 2012
AGC Report 2012
AGC Report 2012 2
AGC Report 2012 2
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 technological innovation, the Group has developed world-class core technologies in fields in-cluding glass, chemicals and ceramics. Under the brand, approximately 50,000 group employees share the group vision and work together to create new value.As a global materials and components supplier, based on our core technologies in glass, fluorine chemistry and their related fields, we will continue to: … Anticipate and envision the future, … Have perspectives beyond our own fields 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.NameAsahi Glass Co., Ltd. (Global brand: AGC)Head office1-5-1, Marunouchi, Chiyoda-ku, Tokyo 100-8405, JapanFoundedSeptember 8, 1907IncorporatedJune 1, 1950Capital90,873 million yenOutstanding stock1,186,705,905 sharesEmployees50,957 (consolidated), 6,367 (non-consolidated)Consolidated Group companies 179 (142 overseas)As of the end of December 2011Note Sales ratios and sales by business segment is calculated using amount of net sales to external customers.We will continuously pursue innovations in technology, products, services, business models and human resources. We will continuously improve our operations for maximum efficiency and quality in every activity and at all times strive for the highest possible standard of performance. (“Never take the easy way out, but confront difficulties”) 1We will respect individuals with different cultures, capabilities and personalities, and our global man-agement will operate without regard to nationality, gender or background.We, as good global citizens, will shoulder the responsibility to contrib-ute to a sustainable society in har-mony with nature.We will build open and fair relation-ships with all of our stakeholders based on the highest ethical stan-dards.Net sales1,214.7billion yenNet sales1,214.7billion yenCorporate DataSales and Sales Ratio by Business SegmentSales and Sales Ratio by Geographic SegmentGlass46%554.4 billion yenEurope20%243.2 billion yenElectronics32%386.5 billion yenJapan/Asia74%923 billion yenChemicals20%248.6 billion yenAGC Group VisionOur Shared ValuesOur Mission—We, the AGC Group, “Look Beyond” to make the world a brighter place.Management PolicyManagement PolicyAGC Group Vision“ -2012”Overview of the AGC GroupOur Vision and Shared ValuesAction Plan(Medium-Term Management Plan)Action Plan(Medium-Term Management Plan)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 ExcellenceDiversityEnvironmentIntegrity1 “Never take the easy way out, but confront difficulties” is the founding principle of Asahi Glass.Ceramics/Other2%83.9 billion yenNorth America6%81 billion yenAGC Report 2012 3AGC Report 2012 4 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 technological innovation, the Group has developed world-class core technologies in fields in-cluding glass, chemicals and ceramics. Under the brand, approximately 50,000 group employees share the group vision and work together to create new value.As a global materials and components supplier, based on our core technologies in glass, fluorine chemistry and their related fields, we will continue to: … Anticipate and envision the future, … Have perspectives beyond our own fields 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.NameAsahi Glass Co., Ltd. (Global brand: AGC)Head office1-5-1, Marunouchi, Chiyoda-ku, Tokyo 100-8405, JapanFoundedSeptember 8, 1907IncorporatedJune 1, 1950Capital90,873 million yenOutstanding stock1,186,705,905 sharesEmployees50,957 (consolidated), 6,367 (non-consolidated)Consolidated Group companies 179 (142 overseas)As of the end of December 2011Note Sales ratios and sales by business segment is calculated using amount of net sales to external customers.We will continuously pursue innovations in technology, products, services, business models and human resources. We will continuously improve our operations for maximum efficiency and quality in every activity and at all times strive for the highest possible standard of performance. (“Never take the easy way out, but confront difficulties”) 1We will respect individuals with different cultures, capabilities and personalities, and our global man-agement will operate without regard to nationality, gender or background.We, as good global citizens, will shoulder the responsibility to contrib-ute to a sustainable society in har-mony with nature.We will build open and fair relation-ships with all of our stakeholders based on the highest ethical stan-dards.Net sales1,214.7billion yenNet sales1,214.7billion yenCorporate DataSales and Sales Ratio by Business SegmentSales and Sales Ratio by Geographic SegmentGlass46%554.4 billion yenEurope20%243.2 billion yenElectronics32%386.5 billion yenJapan/Asia74%923 billion yenChemicals20%248.6 billion yenAGC Group VisionOur Shared ValuesOur Mission—We, the AGC Group, “Look Beyond” to make the world a brighter place.Management PolicyManagement PolicyAGC Group Vision“ -2012”Overview of the AGC GroupOur Vision and Shared ValuesAction Plan(Medium-Term Management Plan)Action Plan(Medium-Term Management Plan)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 ExcellenceDiversityEnvironmentIntegrity1 “Never take the easy way out, but confront difficulties” is the founding principle of Asahi Glass.Ceramics/Other2%83.9 billion yenNorth America6%81 billion yenAGC Report 2012 3AGC Report 2012 4 1,5005001510010,00012,00050,0003045150501,5001,000(Billion yen)(Billion yen)20091,148.220101,288.920111,214.786.7229.2165.7030020010008,0006,0004,0002,000(1,000 tons-CO2)200711,70020098,02020109,22020119,86060(Billion yen)(Billion yen)200945.0201039.4201146.4124.9117.4152.705010015020002,0001,000500(Billion yen)20091,781.920101,764.020111,691.6808.3849.8850.501,2009006003000(Billion yen)200920.02010123.2201195.3060,00040,00020,00030,00010,000200749,710200947,618201050,399201150,957Total assetsTotal net assetsR&D costsCAPEXNet salesOperating incomeJapan/Asia33,05665%North America3,7017%Europe14,20028%Glass30,11559%Electronics13,10926%Ceramics/Other3,0576%Chemicals4,6769%Number ofemployees (FY 2011) 50,957Number ofemployees (FY 2011) 50,957200847,770020089,9800(Billion yen)Asahi Glass Co., Ltd. and Consolidated SubsidiariesFiscal years ending on December 31 (consolidated)20092011Income statement and balance sheet data (million yen)Net sales1Operating incomeNet incomeTotal assetsTotal net assetsSales by business segment (million yen)GlassElectronicsChemicalsCeramics/OtherSales ratio by business segment (%)1Glass Electronics Chemicals Ceramics/OtherOther financial dataResearch and development costs (million yen)Capital expenditures (million yen)Return on equity (ROE) (%)Return on assets (ROA) (%)2¥ 1,148,198 86,682 19,985 1,781,875 808,312¥ 525,008 369,341 233,696 68,889 42 32 20 6¥ 44,958 124,937 2.7 4.82010¥ 1,288,947 229,205 123,184 1,764,038 849,815¥ 570,921 435,301 260,078 77,305 44 34 20 2¥ 39,399 117,439 15.8 12.9Increase (Decrease)¥ (74,275) (63,542) (27,894) (72,482) 645¥ (16,498) (48,789) (11,505) 6,610 — — — —¥ 7,043 35,266 — —¥ 1,214,672 165,663 95,290 1,691,556 850,460¥ 554,423 386,512 248,573 83,915 46 32 20 2¥ 46,442 152,705 11.8 9.6Net sales/Operating incomeNet incomeTotal assets/Total net assetsR&D costs/CAPEXNumber of employeesEmployees and employee ratio by geographical segmentEmployees and employee ratio by business segmentGreenhouse gas emissions20092011Sales by geographical segment (million yen)JapanAsia3North America EuropeSales ratio by geographical segment (%)JapanAsia3North AmericaEuropeNon-financial dataNumber of employeesTotal energy consumption (PJ)Greenhouse gas emissions (1,000 tons-CO2)Ratio of sales to fast-growing markets (%)4Ratio of environment-related sales (%)4Ratio of sales of new products (%)4¥ 658,556 417,976 76,452 236,076 47 30 6 17 47,618 125 8,020 14 13 42010¥ 777,612 495,669 86,081 232,961 49 31 5 15 50,399 145 9,220 — — —Increase (Decrease)¥ — 427,365 (5,075) 10,269 — — — — 558 2 640 — — —¥ — 923,034 81,006 243,230 — 74 6 20 50,957 147 9,860 19 16 83 From fiscal year 2011, the figure includes both Japan and Asia.4 Data for fiscal 2009 is provided to show comparison before and after introduction of the medium-term management planin 2010.1 Sales ratios and sales by business segment is calculated using amount of net sales to external customers.2 Based on operating income.“ -2012”Financial and Non-Financial HighlightsAGC Report 2012 5AGC Report 2012 6 1,5005001510010,00012,00050,0003045150501,5001,000(Billion yen)(Billion yen)20091,148.220101,288.920111,214.786.7229.2165.7030020010008,0006,0004,0002,000(1,000 tons-CO2)200711,70020098,02020109,22020119,86060(Billion yen)(Billion yen)200945.0201039.4201146.4124.9117.4152.705010015020002,0001,000500(Billion yen)20091,781.920101,764.020111,691.6808.3849.8850.501,2009006003000(Billion yen)200920.02010123.2201195.3060,00040,00020,00030,00010,000200749,710200947,618201050,399201150,957Total assetsTotal net assetsR&D costsCAPEXNet salesOperating incomeJapan/Asia33,05665%North America3,7017%Europe14,20028%Glass30,11559%Electronics13,10926%Ceramics/Other3,0576%Chemicals4,6769%Number ofemployees (FY 2011) 50,957Number ofemployees (FY 2011) 50,957200847,770020089,9800(Billion yen)Asahi Glass Co., Ltd. and Consolidated SubsidiariesFiscal years ending on December 31 (consolidated)20092011Income statement and balance sheet data (million yen)Net sales1Operating incomeNet incomeTotal assetsTotal net assetsSales by business segment (million yen)GlassElectronicsChemicalsCeramics/OtherSales ratio by business segment (%)1Glass Electronics Chemicals Ceramics/OtherOther financial dataResearch and development costs (million yen)Capital expenditures (million yen)Return on equity (ROE) (%)Return on assets (ROA) (%)2¥ 1,148,198 86,682 19,985 1,781,875 808,312¥ 525,008 369,341 233,696 68,889 42 32 20 6¥ 44,958 124,937 2.7 4.82010¥ 1,288,947 229,205 123,184 1,764,038 849,815¥ 570,921 435,301 260,078 77,305 44 34 20 2¥ 39,399 117,439 15.8 12.9Increase (Decrease)¥ (74,275) (63,542) (27,894) (72,482) 645¥ (16,498) (48,789) (11,505) 6,610 — — — —¥ 7,043 35,266 — —¥ 1,214,672 165,663 95,290 1,691,556 850,460¥ 554,423 386,512 248,573 83,915 46 32 20 2¥ 46,442 152,705 11.8 9.6Net sales/Operating incomeNet incomeTotal assets/Total net assetsR&D costs/CAPEXNumber of employeesEmployees and employee ratio by geographical segmentEmployees and employee ratio by business segmentGreenhouse gas emissions20092011Sales by geographical segment (million yen)JapanAsia3North America EuropeSales ratio by geographical segment (%)JapanAsia3North AmericaEuropeNon-financial dataNumber of employeesTotal energy consumption (PJ)Greenhouse gas emissions (1,000 tons-CO2)Ratio of sales to fast-growing markets (%)4Ratio of environment-related sales (%)4Ratio of sales of new products (%)4¥ 658,556 417,976 76,452 236,076 47 30 6 17 47,618 125 8,020 14 13 42010¥ 777,612 495,669 86,081 232,961 49 31 5 15 50,399 145 9,220 — — —Increase (Decrease)¥ — 427,365 (5,075) 10,269 — — — — 558 2 640 — — —¥ — 923,034 81,006 243,230 — 74 6 20 50,957 147 9,860 19 16 83 From fiscal year 2011, the figure includes both Japan and Asia.4 Data for fiscal 2009 is provided to show comparison before and after introduction of the medium-term management planin 2010.1 Sales ratios and sales by business segment is calculated using amount of net sales to external customers.2 Based on operating income.“ -2012”Financial and Non-Financial HighlightsAGC Report 2012 5AGC Report 2012 6 CEO Message
CEO Message
We Will Continue to Develop the AGC Group with the Goal to be an
We Will Continue to Develop the AGC Group with the Goal to be an
Outstanding Global Enterprise that is Highly Profitable, Fast-Growing
Outstanding Global Enterprise that is Highly Profitable, Fast-Growing
and Contributes to the Realization of a Sustainable Society
and Contributes to the Realization of a Sustainable Society
Kazuhiko Ishimura
Kazuhiko Ishimura
President & CEO
President & CEO
In February 2010, the AGC Group formulated its
In February 2010, the AGC Group formulated its
Last year, the Group launched Dragontrail™, a high-
Last year, the Group launched Dragontrail™, a high-
“Aspirations for 2020” as a group-wide vision for the future.
“Aspirations for 2020” as a group-wide vision for the future.
performance specialty glass for chemical strengthen-
performance specialty glass for chemical strengthen-
AGC’s Aspirations for 2020
AGC’s Aspirations for 2020
The AGC Group aspires to excel as a highly profit-
The AGC Group aspires to excel as a highly profit-
able and fast-growing global enterprise making
able and fast-growing global enterprise making
contributions to a sustainable society by:
contributions to a sustainable society by:
• Having strong and differentiated technologies
• Having strong and differentiated technologies
• Giving consideration to environmental friendliness
• Giving consideration to environmental friendliness
not only of products but also for overall produc-
not only of products but also for overall produc-
tion processes and business activities
tion processes and business activities
• Contributing to the development of fast-growing
• Contributing to the development of fast-growing
regions
regions
ing, to meet the burgeoning demand for cover glass
ing, to meet the burgeoning demand for cover glass
for smartphones and other devices. We also released
for smartphones and other devices. We also released
the world’ s thinnest glass substrates for touch panels,
the world’ s thinnest glass substrates for touch panels,
with a thickness of 0.28 millimeters, and successfully
with a thickness of 0.28 millimeters, and successfully
developed ultra-thin sheet glass using the float
developed ultra-thin sheet glass using the float
method. At only 0.1 millimeters thick, it is also the thin-
method. At only 0.1 millimeters thick, it is also the thin-
nest float glass in the world.
nest float glass in the world.
While further evolving glass technologies, the AGC
While further evolving glass technologies, the AGC
Group works to combine and develop the Group’ s core
Group works to combine and develop the Group’ s core
technologies in glass, chemicals and ceramics as a
technologies in glass, chemicals and ceramics as a
means to further differentiate our products and establish
means to further differentiate our products and establish
a dominant position as a strong competitor in the market.
a dominant position as a strong competitor in the market.
Our third measure aims to Deliver Technology
Our third measure aims to Deliver Technology
Solutions for Environmental and Energy Issues.
Solutions for Environmental and Energy Issues.
To realize these aspirations, the AGC Group is cur-
To realize these aspirations, the AGC Group is cur-
The AGC Group’ s operations require a vast amount of
The AGC Group’ s operations require a vast amount of
rently focusing on the following three measures under
rently focusing on the following three measures under
energy for various processes including glass melting
energy for various processes including glass melting
its management policy, .
its management policy, .
and caustic soda electrolytic processes. Recognizing its
and caustic soda electrolytic processes. Recognizing its
We regard the first measure as our Second Round
We regard the first measure as our Second Round
responsibility to society as a major energy consumer,
responsibility to society as a major energy consumer,
of Globalization.
of Globalization.
the Group is doing its utmost to cut down on the
the Group is doing its utmost to cut down on the
The AGC Group has already been pursuing globaliza-
The AGC Group has already been pursuing globaliza-
energy used in these production processes. Indeed,
energy used in these production processes. Indeed,
tion by actively developing its business in regions such
tion by actively developing its business in regions such
we have already established some of the world’ s most
we have already established some of the world’ s most
as Asia, Europe and North America.
as Asia, Europe and North America.
advanced energy-saving technologies, and are intro-
advanced energy-saving technologies, and are intro-
In recent years, however, with the economies of
In recent years, however, with the economies of
ducing them into the Group’s plants worldwide.
ducing them into the Group’s plants worldwide.
advanced countries stagnating, fast-growing countries are
advanced countries stagnating, fast-growing countries are
At the same time, the AGC Group’ s energy-saving pro-
At the same time, the AGC Group’ s energy-saving pro-
emerging as growth-drivers, and issues such as demand
emerging as growth-drivers, and issues such as demand
duction processes give rise to energy-conserving archi-
duction processes give rise to energy-conserving archi-
for resources are coming to the fore. These changes
for resources are coming to the fore. These changes
tectural and automotive glass, as well as solar
tectural and automotive glass, as well as solar
have resulted in a considerable global shift. To respond
have resulted in a considerable global shift. To respond
power-related materials and components. As their
power-related materials and components. As their
to these changes, we intend to raise the AGC Group’ s
to these changes, we intend to raise the AGC Group’ s
usage grows, these products are making an increas-
usage grows, these products are making an increas-
presence in the advanced and fast-growing regions where
presence in the advanced and fast-growing regions where
ingly significant contribution to solving environmental
ingly significant contribution to solving environmental
it already operates, and moreover, develop business in
it already operates, and moreover, develop business in
and energy-related problems on a global scale through
and energy-related problems on a global scale through
particularly fast-growing countries that we have yet to
particularly fast-growing countries that we have yet to
their superior performance.
their superior performance.
enter. In this way, our Second Round of Globalization
enter. In this way, our Second Round of Globalization
On both of these fronts—working diligently to con-
On both of these fronts—working diligently to con-
promotes the expansion and evolution of the AGC
promotes the expansion and evolution of the AGC
serve energy in production processes and promoting
serve energy in production processes and promoting
Group in tandem with the growth of these regions.
Group in tandem with the growth of these regions.
environmentally friendly products—we intend to apply
environmentally friendly products—we intend to apply
As a specific example of this measure, we decided to
As a specific example of this measure, we decided to
our technological capabilities to help solve environ-
our technological capabilities to help solve environ-
launch full-scale architectural and automotive glass
launch full-scale architectural and automotive glass
mental and energy problems.
mental and energy problems.
operations in Brazil last year, where we are currently
operations in Brazil last year, where we are currently
By steadily carrying out these
By steadily carrying out these
constructing a plant in the state of São Paulo.
constructing a plant in the state of São Paulo.
measures, the AGC Group is building the foundations
measures, the AGC Group is building the foundations
Our second measure is designed to pursue
Our second measure is designed to pursue
for growth at an accelerated pace while contributing to
for growth at an accelerated pace while contributing to
differentiation as a Glass-technology-driven Company.
differentiation as a Glass-technology-driven Company.
the creation of a sustainable society through its busi-
the creation of a sustainable society through its busi-
The AGC Group was the first company in Japan to pro-
The AGC Group was the first company in Japan to pro-
ness activities. In this manner, we aspire to be an out-
ness activities. In this manner, we aspire to be an out-
duce flat glass on an industrial scale, going on to make
duce flat glass on an industrial scale, going on to make
standing and truly global corporate enterprise that
standing and truly global corporate enterprise that
glass for automobiles, electronic displays and other
glass for automobiles, electronic displays and other
consistently earns the trust and meets the expectations
consistently earns the trust and meets the expectations
products that have continually supported people’ s liveli-
products that have continually supported people’ s liveli-
of all stakeholders, including customers, shareholders,
of all stakeholders, including customers, shareholders,
hoods and economic development in each generation.
hoods and economic development in each generation.
investors, business partners and the public at large.
investors, business partners and the public at large.
7
7
AGC Report 2012
AGC Report 2012
AGC Report 2012 8
AGC Report 2012 8
CEO Message
We Will Continue to Develop the AGC Group with the Goal to be an
Outstanding Global Enterprise that is Highly Profitable, Fast-Growing
and Contributes to the Realization of a Sustainable Society
Kazuhiko Ishimura
President & CEO
In February 2010, the AGC Group formulated its
“Aspirations for 2020” as a group-wide vision for the future.
AGC’s Aspirations for 2020
The AGC Group aspires to excel as a highly profit-
able 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 produc-
tion processes and business activities
• Contributing to the development of fast-growing
regions
To realize these aspirations, the AGC Group is cur-
rently focusing on the following three measures under
its management policy, .
We regard the first measure as our Second Round
of Globalization.
The AGC Group has already been pursuing globaliza-
tion by actively developing its business in regions such
as Asia, Europe and North America.
In recent years, however, with the economies of
advanced countries stagnating, fast-growing countries are
emerging as growth-drivers, and issues such as demand
for resources are coming to the fore. These changes
have resulted in a considerable global shift. To respond
to these changes, we intend to raise the AGC Group’ s
presence in the advanced and fast-growing regions where
it already operates, and moreover, develop business in
particularly fast-growing countries that we have yet to
enter. In this way, our Second Round of Globalization
promotes the expansion and evolution of the AGC
Group in tandem with the growth of these regions.
As a specific example of this measure, we decided to
launch full-scale architectural and automotive glass
operations in Brazil last year, where we are currently
constructing a plant in the state of São Paulo.
Our second measure is designed to pursue
differentiation as a Glass-technology-driven Company.
The AGC Group was the first company in Japan to pro-
duce flat glass on an industrial scale, going on to make
glass for automobiles, electronic displays and other
products that have continually supported people’ s liveli-
hoods and economic development in each generation.
Last year, the Group launched Dragontrail™, a high-
performance specialty glass for chemical strengthen-
ing, to meet the burgeoning demand for cover glass
for smartphones and other devices. We also released
the world’ s thinnest glass substrates for touch panels,
with a thickness of 0.28 millimeters, and successfully
developed ultra-thin sheet glass using the float
method. At only 0.1 millimeters thick, it is also the thin-
nest float glass in the world.
While further evolving glass technologies, the AGC
Group works to combine and develop the Group’ s core
technologies in glass, chemicals and ceramics as a
means to further differentiate our products and establish
a dominant position as a strong competitor in the market.
Our third measure aims to Deliver Technology
Solutions for Environmental and Energy Issues.
The AGC Group’ s operations require a vast amount of
energy for various processes including glass melting
and caustic soda electrolytic processes. Recognizing its
responsibility to society as a major energy consumer,
the Group is doing its utmost to cut down on the
energy used in these production processes. Indeed,
we have already established some of the world’ s most
advanced energy-saving technologies, and are intro-
ducing them into the Group’s plants worldwide.
At the same time, the AGC Group’ s energy-saving pro-
duction processes give rise to energy-conserving archi-
tectural and automotive glass, as well as solar
power-related materials and components. As their
usage grows, these products are making an increas-
ingly significant contribution to solving environmental
and energy-related problems on a global scale through
their superior performance.
On both of these fronts—working diligently to con-
serve energy in production processes and promoting
environmentally friendly products—we intend to apply
our technological capabilities to help solve environ-
mental and energy problems.
By steadily carrying out these
measures, the AGC Group is building the foundations
for growth at an accelerated pace while contributing to
the creation of a sustainable society through its busi-
ness activities. In this manner, we aspire to be an out-
standing and truly global corporate enterprise that
consistently earns the trust and meets the expectations
of all stakeholders, including customers, shareholders,
investors, business partners and the public at large.
7
AGC Report 2012
AGC Report 2012 8
duction technology that delivers high value-added prod-ucts while saving energy and resources. We also integrate these technologies to develop differentiated products and strengthen our market competitiveness.A good example of this product differentiation is the fusion of glass technology and chemical coating technol-ogy that resulted in UV Verre Premium™, the world’s first automotive tempered glass for front doors that blocks approximately 99% of UV rays. The glass has been well received by customers who have actually used it. In addi-tion, a fine example of heightened market competitiveness is the use of ceramics technology cultivated over many years to develop a glass-melting furnace with excellent durability and heat-resistance, resulting in improvements to productivity and the quality of our glass products.Our accumulation of unique technologies in the fields of glass, chemicals and ceramics derives from our excellent human resources. In order to leverage fully the expertise of each AGC Group employee, we created Skill Map, a human resources database organized by field of expertise, which was rolled out in 2010. The database holds the work histories of employees with high-level technical knowledge, expertise and know-how, and the rich business knowledge and experience at Group companies around the world.Skill Map has enabled us to quickly select the most suitable members when beginning cross-section product development projects, and also draft rational recruitment plans in line with future growth strategy. There are now independent lively exchanges across divisional boundar-ies, such as global “in-company academic societies” com-prising employees working in the same field. Such active commitment is due in large part to the introduction of Skill Map (See page 49).promote architectural and automotive glass operations in Brazil, an area into which we recently entered, and seek opportunities for market entry into areas where we do not yet have a presence.With regard to measures to become a Glass-technology-driven Company, we are leveraging the light weight, thinness and high strength of specialty glass for chemical strengthening and expanding its applications beyond displays into other areas such as solar panels and the automotive and housing sectors. In order to Deliver Technology Solutions for Environmental and Energy Issues, we are promoting the development and sales expansion of energy-saving glass for eco-friendly housingand eco-friendly vehicles, LED and OLED lighting materials, and lithium-ion battery cathode materials. In addition, all our operations—glass, electronics, chemi-cals and ceramics—provide products geared to the solar power generation market. We are also working on making significant improvements to the energy efficiency of our production processes through the use of innovative pro-duction technology.Through all these initiatives, we strive to further con-tribute to solving environmental and energy issues.I think one of the AGC Group’s biggest strengths lies in its technology. The AGC Group is not limited to glass: it has accumulated unique technology across the fields of chemicals and ceramics as well. The Group evolves each unique technology to the fullest, pursuing high-level pro-As a concrete figure for the Aspirations for 2020, the AGC Group is aiming for net sales of over two trillion yen and 30% sales ratios in fast-growing markets, environment-related items and new products. In fiscal 2011, in order to realize these goals, we worked to build foundations for growth and bolster the earning power of our existing operations based on the medium-term management plan . Specifically, we implemented measures to expand our operations in fast-growing regions: in addition to putting a TFT-LCD glass substrates polishing plant into operation in China, we entered the architectural and automotive glass business in Brazil, and increased the capacity of our chemicals production facilities in Indonesia. We launched new products, such as specialty glass for chemical strengthening, and also expanded our lineup of energy-saving glass and other environment-related products.As a result of these and other measures, sales ratios are steadily improving: in fiscal 2011, our ratio of sales to fast-growing markets, ratio of environment-related sales, and ratio of sales of new products increased to 19%, 16% and 8% respectively.At present, the business environment surrounding the AGC Group is undergoing drastic changes. The growth rate of the flat panel display (FPD) market is slowing as demand from replacing cathode-ray tubes runs its course. In addition, due to economic development in fast-growing countries and the unstable international situation, the prices of resources and energy are anticipated to rise and stayhigh. On top of that, although high growth in fast-growing markets is expected to continue, with the effects of the European financial crisis, future prospects are uncertain for the global economy as a whole, including developed coun-tries, and are expected to stay that way.These changes are not transient, and I have a strong sense of urgency about them. But at the same time, I see these challenging times as the perfect opportunity to enhance the Group’s business strengths and build foundations for growth.For example, in response to the FPD market’s slowing growth rate, we can work to increase the profitabil-ity of glass and chemicals operations as well as strengthen related operations, and, as a result, reduce our depen-dence on FPD operations for profit. Also, rising resource and energy prices should be seen as an opportunity to thoroughly improve the energy efficiency of our produc-tion facilities, thereby enhancing our cost competitive-ness. In addition, treating these changes in the operating environment as a business opportunity, we will expedite sales of energy-saving products and accelerate expansion of operations in fast-growing markets where high growth is anticipated. By managing these changes in the business environ-ment, the AGC Group will use fiscal 2012 as the founda-tion for a reversal of its business results and a rapid return to its growth track.We will work to enhance our business strengths and to accelerate the building of foundations for growth. With regard to enhancing our business strengths, we will institute various measures in all lines of business to further improve productivity, such as introducing innova-tive, high-efficiency production facilities and optimizing production facilities to match demand trends. We will also push forward measures to increase investment efficiency and improve cash flows through inventory reduction.Meanwhile, based on the management policy , we will work to accelerate the building of foundations for growth from three perspectives: the Second Round of Globalization, becoming a Glass-technology-driven Company and Delivering Technology Solutions for Environmental and Energy Issues. In the Second Round of Globalization, we will advancethe expansion of automotive glass sales and the productionof TFT-LCD glass substrates in China, where we have already launched business operations. In addition, we will steadily respond to the growing demand for architectural and automotive glass in Russia and Central and Eastern Europe. We will use all these measures to further enhance the AGC Group’s presence. We are also planning to expand the geographical scope of our operations as we As a member of society, a corporation has a responsibility to a wide range of stakeholders, including customers, shareholders and investors, society at large, business part-ners and employees. It should not simply pursue profit, ignoring communities and the environment. Therefore, corporations must have a due sense of balance, face their stakeholders, and try to respond to their requests and expectations.The AGC Group is engaged in various initiatives geared to the creation of a sustainable society based on its corporate mission under the Group vision : We “Look Beyond” to make the world a brighter place. For example, in an effort to ameliorate global environmental issues, we are developing and manufacturing energy-saving architectural glass, solar-related materials and components, and other environ-mentally friendly products, and promoting the wide-spread use of such green products around the world. We are also helping to solve regional social problems in the fast-growing regions in which we operate, providing edu-cational support in cooperation with local organizations, for example.As a Group, I feel it is our obligation to continue to provide technology and services that meet the expectations of society, while remaining atten-tive to its needs. As such,I appreciate the support we receive as a Group from everyone, and the expectations for ourfuture initiatives.“ -2012”Application of Specialty Glass for Chemical StrengtheningProgress towards Projected Operations in 2020Trends in Results for the Whole Business YearDisplaymarketSolar power generation marketAutomotive marketHousingmarketAGC Group business domains14%13%4%19%16%8%30%30%30%Ratio of sales to fast-growing marketsRatio of environment-related salesRatio of sales of new productsNet salesof 1.1trillion yenin 2009Net salesof 1.2trillion yenin 2011Net salesof 2.0trillion yenor more in 2020010020030005001,0001,5002,0002009201020112012forecastSalesOperating incomeNet incomeSales: billion yenOperating incomeNet income: billion yen50150250Rapid return to growth trackSpecialty glass forchemical strengtheningCEO Interview Concerning the Medium-Term Management PlanTell us about the progress of the medium-term management plan.Q3A3Q4A4Q5A5Q6A6Q2A2Even in this harsh management environment, the ratios of sales in fast-growing areas and of new and environment-related products are steadily growing.How do you perceive the changes in the business environment that have occurred since the plan was drafted?I see handling those changes as an issue that must be overcome, but also as an opportunity.Tell us about specific growth strategies.In addition to raising the profitability of existing businesses, we will accelerate the building of foundations for growth from three perspectives.Tell us about the AGC Group’s strengths.How are you working to fully manifest Group strengths?We have introduced Skill Map, a human resources database organized by field of expertise, to make effective use of our human resources.We aim to differentiate our products and operations by utilizing the unique technology we have accumulated across many fields, including glass, chemicals and ceramics.Tell us how the AGC Group’s CSR activities are contributing to the creation of sustainable societies.We listen to communities, striving to be a Group that engenders trust, expectation and support.“ -2012”Q1A1By Enhancing Our Business Strengths and Accelerating the Building of Foundations for Growth, We Will Pursue Continuing Growth Alongside Our StakeholdersKazuhiko IshimuraPresident & CEOCEO Interview Concerning the Medium-Term Management Plan“ -2012”AGC Report 2012 9AGC Report 2012 10AGC Report 2012 11AGC Report 2012 12 duction technology that delivers high value-added prod-ucts while saving energy and resources. We also integrate these technologies to develop differentiated products and strengthen our market competitiveness.A good example of this product differentiation is the fusion of glass technology and chemical coating technol-ogy that resulted in UV Verre Premium™, the world’s first automotive tempered glass for front doors that blocks approximately 99% of UV rays. The glass has been well received by customers who have actually used it. In addi-tion, a fine example of heightened market competitiveness is the use of ceramics technology cultivated over many years to develop a glass-melting furnace with excellent durability and heat-resistance, resulting in improvements to productivity and the quality of our glass products.Our accumulation of unique technologies in the fields of glass, chemicals and ceramics derives from our excellent human resources. In order to leverage fully the expertise of each AGC Group employee, we created Skill Map, a human resources database organized by field of expertise, which was rolled out in 2010. The database holds the work histories of employees with high-level technical knowledge, expertise and know-how, and the rich business knowledge and experience at Group companies around the world.Skill Map has enabled us to quickly select the most suitable members when beginning cross-section product development projects, and also draft rational recruitment plans in line with future growth strategy. There are now independent lively exchanges across divisional boundar-ies, such as global “in-company academic societies” com-prising employees working in the same field. Such active commitment is due in large part to the introduction of Skill Map (See page 49).promote architectural and automotive glass operations in Brazil, an area into which we recently entered, and seek opportunities for market entry into areas where we do not yet have a presence.With regard to measures to become a Glass-technology-driven Company, we are leveraging the light weight, thinness and high strength of specialty glass for chemical strengthening and expanding its applications beyond displays into other areas such as solar panels and the automotive and housing sectors. In order to Deliver Technology Solutions for Environmental and Energy Issues, we are promoting the development and sales expansion of energy-saving glass for eco-friendly housingand eco-friendly vehicles, LED and OLED lighting materials, and lithium-ion battery cathode materials. In addition, all our operations—glass, electronics, chemi-cals and ceramics—provide products geared to the solar power generation market. We are also working on making significant improvements to the energy efficiency of our production processes through the use of innovative pro-duction technology.Through all these initiatives, we strive to further con-tribute to solving environmental and energy issues.I think one of the AGC Group’s biggest strengths lies in its technology. The AGC Group is not limited to glass: it has accumulated unique technology across the fields of chemicals and ceramics as well. The Group evolves each unique technology to the fullest, pursuing high-level pro-As a concrete figure for the Aspirations for 2020, the AGC Group is aiming for net sales of over two trillion yen and 30% sales ratios in fast-growing markets, environment-related items and new products. In fiscal 2011, in order to realize these goals, we worked to build foundations for growth and bolster the earning power of our existing operations based on the medium-term management plan . Specifically, we implemented measures to expand our operations in fast-growing regions: in addition to putting a TFT-LCD glass substrates polishing plant into operation in China, we entered the architectural and automotive glass business in Brazil, and increased the capacity of our chemicals production facilities in Indonesia. We launched new products, such as specialty glass for chemical strengthening, and also expanded our lineup of energy-saving glass and other environment-related products.As a result of these and other measures, sales ratios are steadily improving: in fiscal 2011, our ratio of sales to fast-growing markets, ratio of environment-related sales, and ratio of sales of new products increased to 19%, 16% and 8% respectively.At present, the business environment surrounding the AGC Group is undergoing drastic changes. The growth rate of the flat panel display (FPD) market is slowing as demand from replacing cathode-ray tubes runs its course. In addition, due to economic development in fast-growing countries and the unstable international situation, the prices of resources and energy are anticipated to rise and stayhigh. On top of that, although high growth in fast-growing markets is expected to continue, with the effects of the European financial crisis, future prospects are uncertain for the global economy as a whole, including developed coun-tries, and are expected to stay that way.These changes are not transient, and I have a strong sense of urgency about them. But at the same time, I see these challenging times as the perfect opportunity to enhance the Group’s business strengths and build foundations for growth.For example, in response to the FPD market’s slowing growth rate, we can work to increase the profitabil-ity of glass and chemicals operations as well as strengthen related operations, and, as a result, reduce our depen-dence on FPD operations for profit. Also, rising resource and energy prices should be seen as an opportunity to thoroughly improve the energy efficiency of our produc-tion facilities, thereby enhancing our cost competitive-ness. In addition, treating these changes in the operating environment as a business opportunity, we will expedite sales of energy-saving products and accelerate expansion of operations in fast-growing markets where high growth is anticipated. By managing these changes in the business environ-ment, the AGC Group will use fiscal 2012 as the founda-tion for a reversal of its business results and a rapid return to its growth track.We will work to enhance our business strengths and to accelerate the building of foundations for growth. With regard to enhancing our business strengths, we will institute various measures in all lines of business to further improve productivity, such as introducing innova-tive, high-efficiency production facilities and optimizing production facilities to match demand trends. We will also push forward measures to increase investment efficiency and improve cash flows through inventory reduction.Meanwhile, based on the management policy , we will work to accelerate the building of foundations for growth from three perspectives: the Second Round of Globalization, becoming a Glass-technology-driven Company and Delivering Technology Solutions for Environmental and Energy Issues. In the Second Round of Globalization, we will advancethe expansion of automotive glass sales and the productionof TFT-LCD glass substrates in China, where we have already launched business operations. In addition, we will steadily respond to the growing demand for architectural and automotive glass in Russia and Central and Eastern Europe. We will use all these measures to further enhance the AGC Group’s presence. We are also planning to expand the geographical scope of our operations as we As a member of society, a corporation has a responsibility to a wide range of stakeholders, including customers, shareholders and investors, society at large, business part-ners and employees. It should not simply pursue profit, ignoring communities and the environment. Therefore, corporations must have a due sense of balance, face their stakeholders, and try to respond to their requests and expectations.The AGC Group is engaged in various initiatives geared to the creation of a sustainable society based on its corporate mission under the Group vision : We “Look Beyond” to make the world a brighter place. For example, in an effort to ameliorate global environmental issues, we are developing and manufacturing energy-saving architectural glass, solar-related materials and components, and other environ-mentally friendly products, and promoting the wide-spread use of such green products around the world. We are also helping to solve regional social problems in the fast-growing regions in which we operate, providing edu-cational support in cooperation with local organizations, for example.As a Group, I feel it is our obligation to continue to provide technology and services that meet the expectations of society, while remaining atten-tive to its needs. As such,I appreciate the support we receive as a Group from everyone, and the expectations for ourfuture initiatives.“ -2012”Application of Specialty Glass for Chemical StrengtheningProgress towards Projected Operations in 2020Trends in Results for the Whole Business YearDisplaymarketSolar power generation marketAutomotive marketHousingmarketAGC Group business domains14%13%4%19%16%8%30%30%30%Ratio of sales to fast-growing marketsRatio of environment-related salesRatio of sales of new productsNet salesof 1.1trillion yenin 2009Net salesof 1.2trillion yenin 2011Net salesof 2.0trillion yenor more in 2020010020030005001,0001,5002,0002009201020112012forecastSalesOperating incomeNet incomeSales: billion yenOperating incomeNet income: billion yen50150250Rapid return to growth trackSpecialty glass forchemical strengtheningCEO Interview Concerning the Medium-Term Management PlanTell us about the progress of the medium-term management plan.Q3A3Q4A4Q5A5Q6A6Q2A2Even in this harsh management environment, the ratios of sales in fast-growing areas and of new and environment-related products are steadily growing.How do you perceive the changes in the business environment that have occurred since the plan was drafted?I see handling those changes as an issue that must be overcome, but also as an opportunity.Tell us about specific growth strategies.In addition to raising the profitability of existing businesses, we will accelerate the building of foundations for growth from three perspectives.Tell us about the AGC Group’s strengths.How are you working to fully manifest Group strengths?We have introduced Skill Map, a human resources database organized by field of expertise, to make effective use of our human resources.We aim to differentiate our products and operations by utilizing the unique technology we have accumulated across many fields, including glass, chemicals and ceramics.Tell us how the AGC Group’s CSR activities are contributing to the creation of sustainable societies.We listen to communities, striving to be a Group that engenders trust, expectation and support.“ -2012”Q1A1By Enhancing Our Business Strengths and Accelerating the Building of Foundations for Growth, We Will Pursue Continuing Growth Alongside Our StakeholdersKazuhiko IshimuraPresident & CEOCEO Interview Concerning the Medium-Term Management Plan“ -2012”AGC Report 2012 9AGC Report 2012 10AGC Report 2012 11AGC Report 2012 12 duction technology that delivers high value-added prod-ucts while saving energy and resources. We also integrate these technologies to develop differentiated products and strengthen our market competitiveness.A good example of this product differentiation is the fusion of glass technology and chemical coating technol-ogy that resulted in UV Verre Premium™, the world’s first automotive tempered glass for front doors that blocks approximately 99% of UV rays. The glass has been well received by customers who have actually used it. In addi-tion, a fine example of heightened market competitiveness is the use of ceramics technology cultivated over many years to develop a glass-melting furnace with excellent durability and heat-resistance, resulting in improvements to productivity and the quality of our glass products.Our accumulation of unique technologies in the fields of glass, chemicals and ceramics derives from our excellent human resources. In order to leverage fully the expertise of each AGC Group employee, we created Skill Map, a human resources database organized by field of expertise, which was rolled out in 2010. The database holds the work histories of employees with high-level technical knowledge, expertise and know-how, and the rich business knowledge and experience at Group companies around the world.Skill Map has enabled us to quickly select the most suitable members when beginning cross-section product development projects, and also draft rational recruitment plans in line with future growth strategy. There are now independent lively exchanges across divisional boundar-ies, such as global “in-company academic societies” com-prising employees working in the same field. Such active commitment is due in large part to the introduction of Skill Map (See page 49).promote architectural and automotive glass operations in Brazil, an area into which we recently entered, and seek opportunities for market entry into areas where we do not yet have a presence.With regard to measures to become a Glass-technology-driven Company, we are leveraging the light weight, thinness and high strength of specialty glass for chemical strengthening and expanding its applications beyond displays into other areas such as solar panels and the automotive and housing sectors. In order to Deliver Technology Solutions for Environmental and Energy Issues, we are promoting the development and sales expansion of energy-saving glass for eco-friendly housingand eco-friendly vehicles, LED and OLED lighting materials, and lithium-ion battery cathode materials. In addition, all our operations—glass, electronics, chemi-cals and ceramics—provide products geared to the solar power generation market. We are also working on making significant improvements to the energy efficiency of our production processes through the use of innovative pro-duction technology.Through all these initiatives, we strive to further con-tribute to solving environmental and energy issues.I think one of the AGC Group’s biggest strengths lies in its technology. The AGC Group is not limited to glass: it has accumulated unique technology across the fields of chemicals and ceramics as well. The Group evolves each unique technology to the fullest, pursuing high-level pro-As a concrete figure for the Aspirations for 2020, the AGC Group is aiming for net sales of over two trillion yen and 30% sales ratios in fast-growing markets, environment-related items and new products. In fiscal 2011, in order to realize these goals, we worked to build foundations for growth and bolster the earning power of our existing operations based on the medium-term management plan . Specifically, we implemented measures to expand our operations in fast-growing regions: in addition to putting a TFT-LCD glass substrates polishing plant into operation in China, we entered the architectural and automotive glass business in Brazil, and increased the capacity of our chemicals production facilities in Indonesia. We launched new products, such as specialty glass for chemical strengthening, and also expanded our lineup of energy-saving glass and other environment-related products.As a result of these and other measures, sales ratios are steadily improving: in fiscal 2011, our ratio of sales to fast-growing markets, ratio of environment-related sales, and ratio of sales of new products increased to 19%, 16% and 8% respectively.At present, the business environment surrounding the AGC Group is undergoing drastic changes. The growth rate of the flat panel display (FPD) market is slowing as demand from replacing cathode-ray tubes runs its course. In addition, due to economic development in fast-growing countries and the unstable international situation, the prices of resources and energy are anticipated to rise and stayhigh. On top of that, although high growth in fast-growing markets is expected to continue, with the effects of the European financial crisis, future prospects are uncertain for the global economy as a whole, including developed coun-tries, and are expected to stay that way.These changes are not transient, and I have a strong sense of urgency about them. But at the same time, I see these challenging times as the perfect opportunity to enhance the Group’s business strengths and build foundations for growth.For example, in response to the FPD market’s slowing growth rate, we can work to increase the profitabil-ity of glass and chemicals operations as well as strengthen related operations, and, as a result, reduce our depen-dence on FPD operations for profit. Also, rising resource and energy prices should be seen as an opportunity to thoroughly improve the energy efficiency of our produc-tion facilities, thereby enhancing our cost competitive-ness. In addition, treating these changes in the operating environment as a business opportunity, we will expedite sales of energy-saving products and accelerate expansion of operations in fast-growing markets where high growth is anticipated. By managing these changes in the business environ-ment, the AGC Group will use fiscal 2012 as the founda-tion for a reversal of its business results and a rapid return to its growth track.We will work to enhance our business strengths and to accelerate the building of foundations for growth. With regard to enhancing our business strengths, we will institute various measures in all lines of business to further improve productivity, such as introducing innova-tive, high-efficiency production facilities and optimizing production facilities to match demand trends. We will also push forward measures to increase investment efficiency and improve cash flows through inventory reduction.Meanwhile, based on the management policy , we will work to accelerate the building of foundations for growth from three perspectives: the Second Round of Globalization, becoming a Glass-technology-driven Company and Delivering Technology Solutions for Environmental and Energy Issues. In the Second Round of Globalization, we will advancethe expansion of automotive glass sales and the productionof TFT-LCD glass substrates in China, where we have already launched business operations. In addition, we will steadily respond to the growing demand for architectural and automotive glass in Russia and Central and Eastern Europe. We will use all these measures to further enhance the AGC Group’s presence. We are also planning to expand the geographical scope of our operations as we As a member of society, a corporation has a responsibility to a wide range of stakeholders, including customers, shareholders and investors, society at large, business part-ners and employees. It should not simply pursue profit, ignoring communities and the environment. Therefore, corporations must have a due sense of balance, face their stakeholders, and try to respond to their requests and expectations.The AGC Group is engaged in various initiatives geared to the creation of a sustainable society based on its corporate mission under the Group vision : We “Look Beyond” to make the world a brighter place. For example, in an effort to ameliorate global environmental issues, we are developing and manufacturing energy-saving architectural glass, solar-related materials and components, and other environ-mentally friendly products, and promoting the wide-spread use of such green products around the world. We are also helping to solve regional social problems in the fast-growing regions in which we operate, providing edu-cational support in cooperation with local organizations, for example.As a Group, I feel it is our obligation to continue to provide technology and services that meet the expectations of society, while remaining atten-tive to its needs. As such,I appreciate the support we receive as a Group from everyone, and the expectations for ourfuture initiatives.“ -2012”Application of Specialty Glass for Chemical StrengtheningProgress towards Projected Operations in 2020Trends in Results for the Whole Business YearDisplaymarketSolar power generation marketAutomotive marketHousingmarketAGC Group business domains14%13%4%19%16%8%30%30%30%Ratio of sales to fast-growing marketsRatio of environment-related salesRatio of sales of new productsNet salesof 1.1trillion yenin 2009Net salesof 1.2trillion yenin 2011Net salesof 2.0trillion yenor more in 2020010020030005001,0001,5002,0002009201020112012forecastSalesOperating incomeNet incomeSales: billion yenOperating incomeNet income: billion yen50150250Rapid return to growth trackSpecialty glass forchemical strengtheningCEO Interview Concerning the Medium-Term Management PlanTell us about the progress of the medium-term management plan.Q3A3Q4A4Q5A5Q6A6Q2A2Even in this harsh management environment, the ratios of sales in fast-growing areas and of new and environment-related products are steadily growing.How do you perceive the changes in the business environment that have occurred since the plan was drafted?I see handling those changes as an issue that must be overcome, but also as an opportunity.Tell us about specific growth strategies.In addition to raising the profitability of existing businesses, we will accelerate the building of foundations for growth from three perspectives.Tell us about the AGC Group’s strengths.How are you working to fully manifest Group strengths?We have introduced Skill Map, a human resources database organized by field of expertise, to make effective use of our human resources.We aim to differentiate our products and operations by utilizing the unique technology we have accumulated across many fields, including glass, chemicals and ceramics.Tell us how the AGC Group’s CSR activities are contributing to the creation of sustainable societies.We listen to communities, striving to be a Group that engenders trust, expectation and support.“ -2012”Q1A1By Enhancing Our Business Strengths and Accelerating the Building of Foundations for Growth, We Will Pursue Continuing Growth Alongside Our StakeholdersKazuhiko IshimuraPresident & CEOCEO Interview Concerning the Medium-Term Management Plan“ -2012”AGC Report 2012 9AGC Report 2012 10AGC Report 2012 11AGC Report 2012 12 duction technology that delivers high value-added prod-ucts while saving energy and resources. We also integrate these technologies to develop differentiated products and strengthen our market competitiveness.A good example of this product differentiation is the fusion of glass technology and chemical coating technol-ogy that resulted in UV Verre Premium™, the world’s first automotive tempered glass for front doors that blocks approximately 99% of UV rays. The glass has been well received by customers who have actually used it. In addi-tion, a fine example of heightened market competitiveness is the use of ceramics technology cultivated over many years to develop a glass-melting furnace with excellent durability and heat-resistance, resulting in improvements to productivity and the quality of our glass products.Our accumulation of unique technologies in the fields of glass, chemicals and ceramics derives from our excellent human resources. In order to leverage fully the expertise of each AGC Group employee, we created Skill Map, a human resources database organized by field of expertise, which was rolled out in 2010. The database holds the work histories of employees with high-level technical knowledge, expertise and know-how, and the rich business knowledge and experience at Group companies around the world.Skill Map has enabled us to quickly select the most suitable members when beginning cross-section product development projects, and also draft rational recruitment plans in line with future growth strategy. There are now independent lively exchanges across divisional boundar-ies, such as global “in-company academic societies” com-prising employees working in the same field. Such active commitment is due in large part to the introduction of Skill Map (See page 49).promote architectural and automotive glass operations in Brazil, an area into which we recently entered, and seek opportunities for market entry into areas where we do not yet have a presence.With regard to measures to become a Glass-technology-driven Company, we are leveraging the light weight, thinness and high strength of specialty glass for chemical strengthening and expanding its applications beyond displays into other areas such as solar panels and the automotive and housing sectors. In order to Deliver Technology Solutions for Environmental and Energy Issues, we are promoting the development and sales expansion of energy-saving glass for eco-friendly housingand eco-friendly vehicles, LED and OLED lighting materials, and lithium-ion battery cathode materials. In addition, all our operations—glass, electronics, chemi-cals and ceramics—provide products geared to the solar power generation market. We are also working on making significant improvements to the energy efficiency of our production processes through the use of innovative pro-duction technology.Through all these initiatives, we strive to further con-tribute to solving environmental and energy issues.I think one of the AGC Group’s biggest strengths lies in its technology. The AGC Group is not limited to glass: it has accumulated unique technology across the fields of chemicals and ceramics as well. The Group evolves each unique technology to the fullest, pursuing high-level pro-As a concrete figure for the Aspirations for 2020, the AGC Group is aiming for net sales of over two trillion yen and 30% sales ratios in fast-growing markets, environment-related items and new products. In fiscal 2011, in order to realize these goals, we worked to build foundations for growth and bolster the earning power of our existing operations based on the medium-term management plan . Specifically, we implemented measures to expand our operations in fast-growing regions: in addition to putting a TFT-LCD glass substrates polishing plant into operation in China, we entered the architectural and automotive glass business in Brazil, and increased the capacity of our chemicals production facilities in Indonesia. We launched new products, such as specialty glass for chemical strengthening, and also expanded our lineup of energy-saving glass and other environment-related products.As a result of these and other measures, sales ratios are steadily improving: in fiscal 2011, our ratio of sales to fast-growing markets, ratio of environment-related sales, and ratio of sales of new products increased to 19%, 16% and 8% respectively.At present, the business environment surrounding the AGC Group is undergoing drastic changes. The growth rate of the flat panel display (FPD) market is slowing as demand from replacing cathode-ray tubes runs its course. In addition, due to economic development in fast-growing countries and the unstable international situation, the prices of resources and energy are anticipated to rise and stayhigh. On top of that, although high growth in fast-growing markets is expected to continue, with the effects of the European financial crisis, future prospects are uncertain for the global economy as a whole, including developed coun-tries, and are expected to stay that way.These changes are not transient, and I have a strong sense of urgency about them. But at the same time, I see these challenging times as the perfect opportunity to enhance the Group’s business strengths and build foundations for growth.For example, in response to the FPD market’s slowing growth rate, we can work to increase the profitabil-ity of glass and chemicals operations as well as strengthen related operations, and, as a result, reduce our depen-dence on FPD operations for profit. Also, rising resource and energy prices should be seen as an opportunity to thoroughly improve the energy efficiency of our produc-tion facilities, thereby enhancing our cost competitive-ness. In addition, treating these changes in the operating environment as a business opportunity, we will expedite sales of energy-saving products and accelerate expansion of operations in fast-growing markets where high growth is anticipated. By managing these changes in the business environ-ment, the AGC Group will use fiscal 2012 as the founda-tion for a reversal of its business results and a rapid return to its growth track.We will work to enhance our business strengths and to accelerate the building of foundations for growth. With regard to enhancing our business strengths, we will institute various measures in all lines of business to further improve productivity, such as introducing innova-tive, high-efficiency production facilities and optimizing production facilities to match demand trends. We will also push forward measures to increase investment efficiency and improve cash flows through inventory reduction.Meanwhile, based on the management policy , we will work to accelerate the building of foundations for growth from three perspectives: the Second Round of Globalization, becoming a Glass-technology-driven Company and Delivering Technology Solutions for Environmental and Energy Issues. In the Second Round of Globalization, we will advancethe expansion of automotive glass sales and the productionof TFT-LCD glass substrates in China, where we have already launched business operations. In addition, we will steadily respond to the growing demand for architectural and automotive glass in Russia and Central and Eastern Europe. We will use all these measures to further enhance the AGC Group’s presence. We are also planning to expand the geographical scope of our operations as we As a member of society, a corporation has a responsibility to a wide range of stakeholders, including customers, shareholders and investors, society at large, business part-ners and employees. It should not simply pursue profit, ignoring communities and the environment. Therefore, corporations must have a due sense of balance, face their stakeholders, and try to respond to their requests and expectations.The AGC Group is engaged in various initiatives geared to the creation of a sustainable society based on its corporate mission under the Group vision : We “Look Beyond” to make the world a brighter place. For example, in an effort to ameliorate global environmental issues, we are developing and manufacturing energy-saving architectural glass, solar-related materials and components, and other environ-mentally friendly products, and promoting the wide-spread use of such green products around the world. We are also helping to solve regional social problems in the fast-growing regions in which we operate, providing edu-cational support in cooperation with local organizations, for example.As a Group, I feel it is our obligation to continue to provide technology and services that meet the expectations of society, while remaining atten-tive to its needs. As such,I appreciate the support we receive as a Group from everyone, and the expectations for ourfuture initiatives.“ -2012”Application of Specialty Glass for Chemical StrengtheningProgress towards Projected Operations in 2020Trends in Results for the Whole Business YearDisplaymarketSolar power generation marketAutomotive marketHousingmarketAGC Group business domains14%13%4%19%16%8%30%30%30%Ratio of sales to fast-growing marketsRatio of environment-related salesRatio of sales of new productsNet salesof 1.1trillion yenin 2009Net salesof 1.2trillion yenin 2011Net salesof 2.0trillion yenor more in 2020010020030005001,0001,5002,0002009201020112012forecastSalesOperating incomeNet incomeSales: billion yenOperating incomeNet income: billion yen50150250Rapid return to growth trackSpecialty glass forchemical strengtheningCEO Interview Concerning the Medium-Term Management PlanTell us about the progress of the medium-term management plan.Q3A3Q4A4Q5A5Q6A6Q2A2Even in this harsh management environment, the ratios of sales in fast-growing areas and of new and environment-related products are steadily growing.How do you perceive the changes in the business environment that have occurred since the plan was drafted?I see handling those changes as an issue that must be overcome, but also as an opportunity.Tell us about specific growth strategies.In addition to raising the profitability of existing businesses, we will accelerate the building of foundations for growth from three perspectives.Tell us about the AGC Group’s strengths.How are you working to fully manifest Group strengths?We have introduced Skill Map, a human resources database organized by field of expertise, to make effective use of our human resources.We aim to differentiate our products and operations by utilizing the unique technology we have accumulated across many fields, including glass, chemicals and ceramics.Tell us how the AGC Group’s CSR activities are contributing to the creation of sustainable societies.We listen to communities, striving to be a Group that engenders trust, expectation and support.“ -2012”Q1A1By Enhancing Our Business Strengths and Accelerating the Building of Foundations for Growth, We Will Pursue Continuing Growth Alongside Our StakeholdersKazuhiko IshimuraPresident & CEOCEO Interview Concerning the Medium-Term Management Plan“ -2012”AGC Report 2012 9AGC Report 2012 10AGC Report 2012 11AGC Report 2012 12 Dr. Jane Lubchenco has achieved outstanding academic results in her research in the field of marine ecol-ogy, and has cultivated new fields that incorporate elements of geology, material cycles, and ecosystems. She is one of the most quoted biologists in the world, and has had a significant impact on the research of marine ecology. Dr. Lubchenco has put forth the unique idea of a “social contract” between scientists and society in which there are close relationships between biodiversity, human health, the economy, the social responsibility of scientists, and national security. She thus indicates an identity for scientists who are working to tackle global environmental issues.Ishimura: Established in 1933, the Asahi Glass Foundation’s major activity back then was to offer funding for research for the chemical industry at universities. In 1992, based on the advice of former Chairperson of the Science Council of Japan, Dr. Jiro Kondo, who believed that environmental issues would become increasingly important, the Foundation created the Blue Planet Prize to award indi-viduals and organizations contributing to research related to environmental problems. The prize is regarded as the Nobel Prize in the field of environmental related issues.Lubchenco: It’s wonderful when successful companies like the AGC Group have the wisdom to establish a foundation to benefit society. The Blue Planet Prize recognizes the importance of the environment of the blue planet that we all share. With great humility and deep respect for the Earth, I am greatly honored to accept this award.Roy: I believe I’m the second Indian who has won the award in the past 20 years since it was established. And, if I’m not mistaken, I’m the only prizewinner who actually lives and works in a rural area. In this way, I think it must have been a challenge for the Blue Planet Prize to choose Barefoot College. It’s the first time the award has spot-lighted the traditional knowledge and skills that poor people have around the world.Ishimura:While supporting this award, the AGC Group is developing technologies to dramatically reduce energy con-sumption in energy-intensive glass manufacturing processes as a part of our efforts to respond to global environmental issues.Roy: At Barefoot College, we have been utilizing solar power generation in agricultural communities. Is the AGC Group making use of solar energy? The ocean can also be considered as a source of energy, of course. What are your thoughts on that?Ishimura: While solar power is not yet capable of generat-ing the high temperatures required for glass production, we use the electricity generated from PV systems for other operations. As for harnessing the power from the ocean, we are looking at future possibilities. Meanwhile, we are working to develop and manufacture solar-related materi-als and components that improve power generation efficiency by leveraging our strengths in the glass, chemi-cals and ceramics technologies. We intend to promote these solar technologies and products worldwide.Lubchenco: It’s been very exciting to hear about some of the cutting-edge technologies the AGC Group is develop-ing that make the world better, not only by creating envi-ronment friendly products but also by making its own operations more environmentally friendly. We look forward to more of these kinds of activities in the future.Note This article is an excerpt from the conversation.The Asahi Glass Foundation: It was established in 1933 as the Asahi Foundation for Chemical Industry Promotion in commemoration of the 25th anniversary of the founding of Asahi Glass Co., Ltd. At that time, its primary The Blue Planet Prize is awarded by the Asahi Glass Foundation to honor individuals and organi-zations that have made significant contributions to progress in natural science as well as to the real-ization of a sustainable society. Celebrating its 20th anniversary in 2011, the Blue Planet Prize is now recognized as a prestigious environmental award worldwide. On November 8, 2011, the win-ners of the prize in 2011 were invited to the AGC Group Headquarters to talk about global environ-mental issues.For 40 years, Barefoot College has conducted low-profile educational activities aimed at addressing poverty and improving the quality of life in the rural communities of developing countries, and has achieved significant results in supporting the efforts of local residents to resolve problems them-selves. Barefoot College operates in India and other developing countries in which rural communities are facing problems, and it makes use of local traditional knowledge as well as new knowledge, including the use of small-scale solar electric power generation. The organization has given education to provide local residents with opportunities and systems that enable them to learn how to improve their quality of life. Thus, over a period of many years, Barefoot College has succeeded in developing independent and sustainable rural com-munities in various regions that are in tune with natural ecosystems.function was to provide grants for research and development activities. In 1992, the Foundation revised its programs, changed its name to the current one, and established the Blue Planet Prize. The foundation has continued to carry out a variety of activities centering on its research grant-making and commendation programs.Dr. Jane Lubchenco (United States), biologistBarefoot College (India), founder Mr. Bunker Roy Mr. Bunker Roy(India)Founder of Barefoot CollegeDr. Jane Lubchenco(United States)BiologistKazuhiko IshimuraAGC Group CEOProfiles of the Prize WinnersAsahi Glass Foundation Supports Publication of Joint Paper by Laureates of the Blue Planet PrizeFor more information on the joint paper presented by the Blue Planet Prize laureates:http://www.af-info.or.jp/en/bpplaureates/Blue Planet Prize laureates jointly presented a paper titled, The Environment and Development Challenges: The Imperative to Act, at the 12th Special Session of the Governing Council meeting of the United Nations Environment Programme in February 2012.Representing the Blue Planet Prize laureates, British professor, Dr. Robert Watson, gave a presentation. Dialogue Conversation with the Winners of the Blue Planet PrizeLooking to the Future of the Global EnvironmentAiming to Create a Sustainable SocietyAGC Report 2012 13AGC Report 2012 14 Dr. Jane Lubchenco has achieved outstanding academic results in her research in the field of marine ecol-ogy, and has cultivated new fields that incorporate elements of geology, material cycles, and ecosystems. She is one of the most quoted biologists in the world, and has had a significant impact on the research of marine ecology. Dr. Lubchenco has put forth the unique idea of a “social contract” between scientists and society in which there are close relationships between biodiversity, human health, the economy, the social responsibility of scientists, and national security. She thus indicates an identity for scientists who are working to tackle global environmental issues.Ishimura: Established in 1933, the Asahi Glass Foundation’s major activity back then was to offer funding for research for the chemical industry at universities. In 1992, based on the advice of former Chairperson of the Science Council of Japan, Dr. Jiro Kondo, who believed that environmental issues would become increasingly important, the Foundation created the Blue Planet Prize to award indi-viduals and organizations contributing to research related to environmental problems. The prize is regarded as the Nobel Prize in the field of environmental related issues.Lubchenco: It’s wonderful when successful companies like the AGC Group have the wisdom to establish a foundation to benefit society. The Blue Planet Prize recognizes the importance of the environment of the blue planet that we all share. With great humility and deep respect for the Earth, I am greatly honored to accept this award.Roy: I believe I’m the second Indian who has won the award in the past 20 years since it was established. And, if I’m not mistaken, I’m the only prizewinner who actually lives and works in a rural area. In this way, I think it must have been a challenge for the Blue Planet Prize to choose Barefoot College. It’s the first time the award has spot-lighted the traditional knowledge and skills that poor people have around the world.Ishimura:While supporting this award, the AGC Group is developing technologies to dramatically reduce energy con-sumption in energy-intensive glass manufacturing processes as a part of our efforts to respond to global environmental issues.Roy: At Barefoot College, we have been utilizing solar power generation in agricultural communities. Is the AGC Group making use of solar energy? The ocean can also be considered as a source of energy, of course. What are your thoughts on that?Ishimura: While solar power is not yet capable of generat-ing the high temperatures required for glass production, we use the electricity generated from PV systems for other operations. As for harnessing the power from the ocean, we are looking at future possibilities. Meanwhile, we are working to develop and manufacture solar-related materi-als and components that improve power generation efficiency by leveraging our strengths in the glass, chemi-cals and ceramics technologies. We intend to promote these solar technologies and products worldwide.Lubchenco: It’s been very exciting to hear about some of the cutting-edge technologies the AGC Group is develop-ing that make the world better, not only by creating envi-ronment friendly products but also by making its own operations more environmentally friendly. We look forward to more of these kinds of activities in the future.Note This article is an excerpt from the conversation.The Asahi Glass Foundation: It was established in 1933 as the Asahi Foundation for Chemical Industry Promotion in commemoration of the 25th anniversary of the founding of Asahi Glass Co., Ltd. At that time, its primary The Blue Planet Prize is awarded by the Asahi Glass Foundation to honor individuals and organi-zations that have made significant contributions to progress in natural science as well as to the real-ization of a sustainable society. Celebrating its 20th anniversary in 2011, the Blue Planet Prize is now recognized as a prestigious environmental award worldwide. On November 8, 2011, the win-ners of the prize in 2011 were invited to the AGC Group Headquarters to talk about global environ-mental issues.For 40 years, Barefoot College has conducted low-profile educational activities aimed at addressing poverty and improving the quality of life in the rural communities of developing countries, and has achieved significant results in supporting the efforts of local residents to resolve problems them-selves. Barefoot College operates in India and other developing countries in which rural communities are facing problems, and it makes use of local traditional knowledge as well as new knowledge, including the use of small-scale solar electric power generation. The organization has given education to provide local residents with opportunities and systems that enable them to learn how to improve their quality of life. Thus, over a period of many years, Barefoot College has succeeded in developing independent and sustainable rural com-munities in various regions that are in tune with natural ecosystems.function was to provide grants for research and development activities. In 1992, the Foundation revised its programs, changed its name to the current one, and established the Blue Planet Prize. The foundation has continued to carry out a variety of activities centering on its research grant-making and commendation programs.Dr. Jane Lubchenco (United States), biologistBarefoot College (India), founder Mr. Bunker Roy Mr. Bunker Roy(India)Founder of Barefoot CollegeDr. Jane Lubchenco(United States)BiologistKazuhiko IshimuraAGC Group CEOProfiles of the Prize WinnersAsahi Glass Foundation Supports Publication of Joint Paper by Laureates of the Blue Planet PrizeFor more information on the joint paper presented by the Blue Planet Prize laureates:www.af-info.or.jp/en/bpplaureates/Blue Planet Prize laureates jointly presented a paper titled, The Environment and Development Challenges: The Imperative to Act, at the 12th Special Session of the Governing Council meeting of the United Nations Environment Programme in February 2012.Representing the Blue Planet Prize laureates, British professor, Dr. Robert Watson, gave a presentation. Dialogue Conversation with the Winners of the Blue Planet PrizeLooking to the Future of the Global EnvironmentAiming to Create a Sustainable SocietyAGC Report 2012 13AGC Report 2012 14 Feature 1
Contributing to Sustainable Development with
The Brazil Project
Against a backdrop of rapid economic growth, the demand for glass in Brazil is growing.The AGC
Group has decided to build a new plant in the Brazilian state of São Paulo to act as a springboard for
new growth.New challenges for the AGC Group include providing state-of-the-art glass solutions as
a global glass supplier, and opening new frontiers for business while confronting social issues in
Brazil’s developing society.
Opening the Brazilian Market toward
the Second Round of Globalization
The concept of a second round of globalization is pre-
sented in the AGC Group’s management policy,
, and the Group has made further business
expansion in fast-growing markets one of the pillars of its
future growth strategy. As specific goals, the “Aspirations
for 2020” include Group sales of
over 2 trillion yen, with sales from
fast-growing markets making up
more than 30%. At present,
the AGC Group’ s presence
in fast-growing countries is
increasing steadily: it holds
the top share in architec-
tural and automotive glass
in Russia, and is also
expanding its share
in India and China
with a focus on
the automo-
Kei Yonamoto
Asahi Glass
Executive Vice President
Brazil Global Project
Team Leader
tive market. However,
b u s i n e s s e x p a n s i o n
must not be limited to
t h e s e m a r k e t s i f t h e
Aspirations for 2020 are
t o b e r e a l i z e d : t h e
opening of new growth
markets is vital. To that
end, for the past few
years, the AGC Group has been considering a move into
Brazil, a blank area on its business map.
Brazil has a population of approximately 200 million
– the fifth largest in the world – and in 2010 the country
had achieved high economic growth of 7.5%. Future plans
include hosting a succession of international sporting
events, and as a result, increased demand in the construc-
tion market is expected. Growth in the automotive sector
is also remarkable: more than 3.6 million new cars were
sold in 2011, making Brazil the fourth largest consumer in
the world, and the number manufactured in 2015 is pre-
dicted to reach 4 million. In addition, young people, who
comprise a high percentage of the current Brazilian popu-
lation, will constitute the future mainstream of consumers,
and so economic growth can be expected to continue
over the medium and long-term.
Of course there are risks, economic instability
among them. However, the country holds abundant
potential above and beyond its current growth. The
Group decided that the time was finally right to advance,
and construction of the plant was given the go-ahead.
M
a
r
k
e
t
E
y
e
s
As one of the BRICS countries, Brazil is seeing continued
high economic growth. The country boasts territory
approximately 23 times the size of Japan, and has used this
vast area for concentrated efforts in the agricultural,
livestock and mining industries. In recent years, it has
promoted the production of ethanol, an energy source
that does not use fossil resources, and the construction of
infrastructure used in social and daily life, and its gross
domestic product (GDP) is greatly expanding. On the
other hand, energy consumption and CO2 emissions per
person are also increasing, and there is a need for a harmo-
nized growth strategy that will balance the economic
development of society with the global environment.
Gross Domestic Product (GDP)/Population Change in Brazil
(Billion U.S. dollars)
Gross Domestic Product
Population Change
(Millions)
190
188
186
192
193
1,653
1,593
1,367
1,000
1,089
882
2,500
2,000
1,500
500
0
200
195
2,089
190
180
170
160
0
2005
2006
2007
2008
2009
2010
Source: Ministry of Internal Affairs and Communications
Statistics Bureau Website (Japanese only)
http://www.stat.go.jp/data/sekai/index.htm
Brazil
São Paulo
AGC Glass Brazil
AGC Vidros do Brasil Ltda.
Site:
Guaratinguetá City, São Paulo, Brazil
Portion of ownership:
AGC Group 100%
Description of business:
and automotive glass
Production capacity1:
Manufacture and sales of architectural
Float glass (220,000 tons/year),
automotive glass (for 500,000 cars/year)
No. of employees1:
Approximately 500
1 As of 2016
Concentrating the Full Power of the AGC Group
to Realize a Stable Supply of High-Quality Products
and automotive glass in the
state of São Paulo. Operation
is planned to begin in stages
Competing companies have long held an oligopoly in
starting in 2013. The new
both the construction and automotive sectors of the
plant will be equipped with
Brazilian glass market. However, in recent years, as the
state-of-the-art equipment
economy has grown, the scale of the market has
and operation expertise to
expanded rapidly. The resulting vigorous demand cannot
ensure globally standardized quality, which is made pos-
be completely satisfied by domestic production, and
sible through the standardization of production facilities
imports from Asia and Europe are increasing. For this
and operation procedures across the Group. I am confi-
reason, through skillful use of the state-of-the-art technol-
dent that the products manufactured at the new plant will
ogy and business know-how it has cultivated in the global
undoubtedly display high market competitiveness with
market, the AGC Group is confident of success.
regard to quality, supply stability and cost performance.
The Group is moving forward with preparations for
The Group is proactively expanding its business for glass
this advance, putting together a lateral team composed of
with outstanding thermal insulation and other high-value-
personnel of diverse nationalities with a focus on
added products. Through its supply of these products, the
European members, and concentrating the knowledge
Group plans to contribute to environmental conscious-
and experience gained from prior advances into countries
ness and improvements in quality of life in Brazil. It will
and regions around the world. In particular, with the
also give consideration to environmental degradation,
global development of auto manufacturers, more empha-
disparity of wealth and other issues in Brazilian society,
sis has been placed on the globally standardized quality
and intends to address them through manufacturing pro-
of components, and the Group’ s ability to provide such
cesses and social contribution activities.
components is a tremendous asset with regard to auto-
I have personally had many opportunities to speak
motive glass. At present, the
to personnel at stores in the area. The AGC Group is held
AGC Group is building a
in high regard, and there is palpable anticipation locally
float glass furnace to act as
about the arrival of the first new glass supplier in a long
the core facility for glass pro-
time. The Group is resolved to use its full power to launch
duction, as well as the pro-
its business in Brazil, to contribute to local society and
duction facility for high-
industry, and to lead growth strategy for the AGC Group
value-added architectural
through opening the new frontier of the Brazilian market.
15
AGC Report 2012
AGC Report 2012 16
Brazil
São Paulo
AGC Glass Brazil
AGC Vidros do Brasil Ltda.
Site:
Guaratinguetá City, São Paulo, Brazil
Portion of ownership:
AGC Group 100%
Description of business:
Manufacture and sales of architectural
and automotive glass
Production capacity1:
Float glass (220,000 tons/year),
automotive glass (for 500,000 cars/year)
No. of employees1:
Approximately 500
1 As of 2016
Feature 1
M
a
r
k
e
t
E
y
e
s
As one of the BRICS countries, Brazil is seeing continued
high economic growth. The country boasts territory
approximately 23 times the size of Japan, and has used this
vast area for concentrated efforts in the agricultural,
livestock and mining industries. In recent years, it has
promoted the production of ethanol, an energy source
that does not use fossil resources, and the construction of
infrastructure used in social and daily life, and its gross
domestic product (GDP) is greatly expanding. On the
other hand, energy consumption and CO2 emissions per
person are also increasing, and there is a need for a harmo-
nized growth strategy that will balance the economic
development of society with the global environment.
Gross Domestic Product (GDP)/Population Change in Brazil
(Billion U.S. dollars)
(Millions)
2,500
200
Gross Domestic Product
Population Change
192
193
195
2,089
190
190
188
186
2,000
1,500
180
170
160
0
1,653
1,593
1,367
1,000
1,089
882
500
0
2005
2006
2007
2008
2009
2010
Source: Ministry of Internal Affairs and Communications
Statistics Bureau Website (Japanese only)
http://www.stat.go.jp/data/sekai/index.htm
Contributing to Sustainable Development with
The Brazil Project
Against a backdrop of rapid economic growth, the demand for glass in Brazil is growing.The AGC
Group has decided to build a new plant in the Brazilian state of São Paulo to act as a springboard for
new growth.New challenges for the AGC Group include providing state-of-the-art glass solutions as
a global glass supplier, and opening new frontiers for business while confronting social issues in
Brazil’s developing society.
Opening the Brazilian Market toward
the Second Round of Globalization
tive market. However,
b u s i n e s s e x p a n s i o n
must not be limited to
The concept of a second round of globalization is pre-
t h e s e m a r k e t s i f t h e
sented in the AGC Group’s management policy,
Aspirations for 2020 are
, and the Group has made further business
t o b e r e a l i z e d : t h e
expansion in fast-growing markets one of the pillars of its
opening of new growth
future growth strategy. As specific goals, the “Aspirations
markets is vital. To that
for 2020” include Group sales of
end, for the past few
over 2 trillion yen, with sales from
years, the AGC Group has been considering a move into
fast-growing markets making up
Brazil, a blank area on its business map.
more than 30%. At present,
Brazil has a population of approximately 200 million
the AGC Group’ s presence
– the fifth largest in the world – and in 2010 the country
in fast-growing countries is
had achieved high economic growth of 7.5%. Future plans
increasing steadily: it holds
include hosting a succession of international sporting
the top share in architec-
events, and as a result, increased demand in the construc-
tural and automotive glass
tion market is expected. Growth in the automotive sector
in Russia, and is also
is also remarkable: more than 3.6 million new cars were
expanding its share
sold in 2011, making Brazil the fourth largest consumer in
in India and China
the world, and the number manufactured in 2015 is pre-
with a focus on
dicted to reach 4 million. In addition, young people, who
the automo-
comprise a high percentage of the current Brazilian popu-
Kei Yonamoto
Asahi Glass
Executive Vice President
Brazil Global Project
Team Leader
lation, will constitute the future mainstream of consumers,
and so economic growth can be expected to continue
over the medium and long-term.
Of course there are risks, economic instability
among them. However, the country holds abundant
potential above and beyond its current growth. The
Group decided that the time was finally right to advance,
and construction of the plant was given the go-ahead.
Concentrating the Full Power of the AGC Group
to Realize a Stable Supply of High-Quality Products
Competing companies have long held an oligopoly in
both the construction and automotive sectors of the
Brazilian glass market. However, in recent years, as the
economy has grown, the scale of the market has
expanded rapidly. The resulting vigorous demand cannot
be completely satisfied by domestic production, and
imports from Asia and Europe are increasing. For this
reason, through skillful use of the state-of-the-art technol-
ogy and business know-how it has cultivated in the global
market, the AGC Group is confident of success.
The Group is moving forward with preparations for
this advance, putting together a lateral team composed of
personnel of diverse nationalities with a focus on
European members, and concentrating the knowledge
and experience gained from prior advances into countries
and regions around the world. In particular, with the
global development of auto manufacturers, more empha-
sis has been placed on the globally standardized quality
of components, and the Group’ s ability to provide such
components is a tremendous asset with regard to auto-
motive glass. At present, the
AGC Group is building a
float glass furnace to act as
the core facility for glass pro-
duction, as well as the pro-
duction facility for high-
value-added architectural
and automotive glass in the
state of São Paulo. Operation
is planned to begin in stages
starting in 2013. The new
plant will be equipped with
state-of-the-art equipment
and operation expertise to
ensure globally standardized quality, which is made pos-
sible through the standardization of production facilities
and operation procedures across the Group. I am confi-
dent that the products manufactured at the new plant will
undoubtedly display high market competitiveness with
regard to quality, supply stability and cost performance.
The Group is proactively expanding its business for glass
with outstanding thermal insulation and other high-value-
added products. Through its supply of these products, the
Group plans to contribute to environmental conscious-
ness and improvements in quality of life in Brazil. It will
also give consideration to environmental degradation,
disparity of wealth and other issues in Brazilian society,
and intends to address them through manufacturing pro-
cesses and social contribution activities.
I have personally had many opportunities to speak
to personnel at stores in the area. The AGC Group is held
in high regard, and there is palpable anticipation locally
about the arrival of the first new glass supplier in a long
time. The Group is resolved to use its full power to launch
its business in Brazil, to contribute to local society and
industry, and to lead growth strategy for the AGC Group
through opening the new frontier of the Brazilian market.
15
AGC Report 2012
AGC Report 2012 16
Feature 1
Contributing to Sustainable Development with
The Brazil Project
We will Leverage the AGC Group’s Global Technological Expertise and
Know-How to Contribute to Brazil’s Economic and Social Development
Davide Cappellino
President
AGC Glass Brazil
Supporting the Growth of Brazil by Providing
Advanced Glass Solutions
Taking Responsibility as a Global Enterprise
to Deal with Global Environmental Problems
The Brazilian economy has been growing rapidly in
recent years, and driven by the growth of the con-
struction and automotive sectors, glass consump-
tion has been following the same trend. Yet for
many years, Brazil’ s glass market has been domi-
nated by other companies. AGC Brazil aims to sup-
port the development of the Brazilian glass market
by bringing the best of AGC Group’ s global expe-
rience, providing customers with high quality glass
at reasonable prices. Windows in Brazil are often
basic, performing poorly in terms of protection
from heat, cold and noise. We will offer more
sophisticated and efficient glass applications,
improving quality of life for Brazilians by contribut-
ing to their comfort. We have already started sell-
ing glass through a distribution center located near
São Paulo. For the moment the glass is imported
from Europe, but we are accelerating construction
of our plant in order to be able to produce locally
as soon as possible.
AGC Brazil will also support the actions of all
AGC Group In-house Companies, for example in
exploring and opening the Brazilian market to
products from the Chemicals Company.
AGC Brazil will not be just an economic operator,
focusing only on the business opportunities of this
promising market. Our ambition is also to play a
social role, offering concrete contributions to the
development of Brazilian society and its people.
This large country is today facing many chal-
lenges in a number of fields. The growing economy
is absorbing natural resources and a growing
amount of energy, and environmental preservation
is an increasingly urgent issue. Socially, Brazil is
characterized by great disparities between the rich
classes and a vast portion of the population who
still live in poverty.
AGC Brazil will put in place cutting-edge
technology to reduce consumption of energy and
water, as well as South America’ s most advanced
system for the treatment of fumes and protection
of the surrounding environment.
In the meantime, we will invest in efforts to
improve the public school system and support pro-
grams to help children and adolescents improve
skills for better jobs. We will contribute to job cre-
ation for our future colleagues both directly and
indirectly, working with local administrations and
communities.
Contributing to the Resolution of Education and Poverty Issues to Facilitate
Prosperous Coexistence with Brazilian Society
While Brazil experiences rapid economic growth, widening disparities are resulting in more serious pov-
erty issues. One thing that prevents the poor from escaping poverty is lack of education. Although the
school attendance rate in Brazil is comparatively high, many children fail grades or drop out due to inad-
equate educational environments or lack of understanding on the part of their families. When they enter
society, they do so without the education necessary to find decent jobs.Before launching its business in
Brazil, the AGC Group held several talks with local administrations and a number of NGOs, gathering
opinions from experts before it began to consider social contribution activities for Brazil. As a result, based
on an awareness of the severity of education issues in Brazilian society and on the concepts of “Support
for the next generation” and “Harmony with local communities” given in the AGC Group Social
Contribution Basic Policy, the Group has addressed support for education in the region.
Supporting Improvements to the Public School
People through Job Training and Before/After
System
School Care
Support for Job Hunting among Local Young
The Ayrton Senna Institute (est. 1994) is developing
For over 30 years, Casa Betânia has operated a
programs to improve public education all across Brazil in
before and after school care program for young
order to reduce illiteracy, age-grade distortion, failure and
people from the poorest areas of Guaratinguetá
dropouts. The AGC Group supports the Institute’s new
City by providing meals and extracurricular lessons.
learning environment improve-
ment program in Guaratinguetá
City, which involves training for
public school teachers and the
improvement of school materials.
Their goal is to support children to be successful at
school, and to protect them from violence, drugs
and other temptations. The AGC Group will help
Casa Betânia expand the capacity of their child
care facility to accommodate more children, and
will build a new job training center to support job
hunting among the area’s young people.
AGC Group CEO Kazuhiko Ishimura (right) and
Ayrton Senna Institute President Viviane Senna (left)
Photo credits: Mr. Moises Moraes
“
S
t
a
k
e
h
o
l
d
e
r
’
s
V
o
i
c
e
It is with Great Joy that Guaratinguetá Receives the AGC Group,
a Leading Producer of Glass in the World.
”
The AGC Group is seriously concerned with issues related to education and
the environment. We are proud to say that this company will be our partner
in sustainable development and social activities, as well as for job creation
and social programs that focus on education in our country.
We wish AGC Glass Brazil the greatest success.
Junior Fillipo
Mayor of Guaratinguetá
Finalized image of
new plant in Brazil
17
AGC Report 2012
AGC Report 2012 18
Feature 1
Contributing to Sustainable Development with
The Brazil Project
We will Leverage the AGC Group’s Global Technological Expertise and
Know-How to Contribute to Brazil’s Economic and Social Development
Davide Cappellino
President
AGC Glass Brazil
Supporting the Growth of Brazil by Providing
Taking Responsibility as a Global Enterprise
Advanced Glass Solutions
to Deal with Global Environmental Problems
The Brazilian economy has been growing rapidly in
AGC Brazil will not be just an economic operator,
recent years, and driven by the growth of the con-
focusing only on the business opportunities of this
struction and automotive sectors, glass consump-
promising market. Our ambition is also to play a
tion has been following the same trend. Yet for
social role, offering concrete contributions to the
many years, Brazil’ s glass market has been domi-
development of Brazilian society and its people.
nated by other companies. AGC Brazil aims to sup-
This large country is today facing many chal-
port the development of the Brazilian glass market
lenges in a number of fields. The growing economy
by bringing the best of AGC Group’ s global expe-
is absorbing natural resources and a growing
rience, providing customers with high quality glass
amount of energy, and environmental preservation
at reasonable prices. Windows in Brazil are often
is an increasingly urgent issue. Socially, Brazil is
basic, performing poorly in terms of protection
characterized by great disparities between the rich
from heat, cold and noise. We will offer more
classes and a vast portion of the population who
sophisticated and efficient glass applications,
still live in poverty.
improving quality of life for Brazilians by contribut-
AGC Brazil will put in place cutting-edge
ing to their comfort. We have already started sell-
technology to reduce consumption of energy and
ing glass through a distribution center located near
water, as well as South America’ s most advanced
São Paulo. For the moment the glass is imported
system for the treatment of fumes and protection
from Europe, but we are accelerating construction
of the surrounding environment.
of our plant in order to be able to produce locally
In the meantime, we will invest in efforts to
as soon as possible.
improve the public school system and support pro-
AGC Brazil will also support the actions of all
grams to help children and adolescents improve
AGC Group In-house Companies, for example in
skills for better jobs. We will contribute to job cre-
exploring and opening the Brazilian market to
ation for our future colleagues both directly and
products from the Chemicals Company.
indirectly, working with local administrations and
communities.
17
AGC Report 2012
Finalized image of
new plant in Brazil
Contributing to the Resolution of Education and Poverty Issues to Facilitate
Prosperous Coexistence with Brazilian Society
While Brazil experiences rapid economic growth, widening disparities are resulting in more serious pov-
erty issues. One thing that prevents the poor from escaping poverty is lack of education. Although the
school attendance rate in Brazil is comparatively high, many children fail grades or drop out due to inad-
equate educational environments or lack of understanding on the part of their families. When they enter
society, they do so without the education necessary to find decent jobs.Before launching its business in
Brazil, the AGC Group held several talks with local administrations and a number of NGOs, gathering
opinions from experts before it began to consider social contribution activities for Brazil. As a result, based
on an awareness of the severity of education issues in Brazilian society and on the concepts of “Support
for the next generation” and “Harmony with local communities” given in the AGC Group Social
Contribution Basic Policy, the Group has addressed support for education in the region.
Supporting Improvements to the Public School
System
The Ayrton Senna Institute (est. 1994) is developing
programs to improve public education all across Brazil in
order to reduce illiteracy, age-grade distortion, failure and
dropouts. The AGC Group supports the Institute’s new
learning environment improve-
ment program in Guaratinguetá
City, which involves training for
public school teachers and the
improvement of school materials.
Support for Job Hunting among Local Young
People through Job Training and Before/After
School Care
For over 30 years, Casa Betânia has operated a
before and after school care program for young
people from the poorest areas of Guaratinguetá
City by providing meals and extracurricular lessons.
Their goal is to support children to be successful at
school, and to protect them from violence, drugs
and other temptations. The AGC Group will help
Casa Betânia expand the capacity of their child
care facility to accommodate more children, and
will build a new job training center to support job
hunting among the area’s young people.
AGC Group CEO Kazuhiko Ishimura (right) and
Ayrton Senna Institute President Viviane Senna (left)
Photo credits: Mr. Moises Moraes
“
l
S
t
a
k
e
h
o
d
e
r
’
s
V
o
c
e
i
It is with Great Joy that Guaratinguetá Receives the AGC Group,
a Leading Producer of Glass in the World.
”
The AGC Group is seriously concerned with issues related to education and
the environment. We are proud to say that this company will be our partner
in sustainable development and social activities, as well as for job creation
and social programs that focus on education in our country.
We wish AGC Glass Brazil the greatest success.
Junior Fillipo
Mayor of Guaratinguetá
AGC Report 2012 18
Feature 2
Feature 2
Driving the Evolution of Smartphones and Tablet PCs
Driving the Evolution of Smartphones and Tablet PCs
The Future is
The Future is
Now with
Now with
™
™
The AGC Group introduces Dragontrail™—a
The AGC Group introduces Dragontrail™—a
revolutionary cover glass that is resistant to
revolutionary cover glass that is resistant to
scratching and shocks and keeps displays look-
scratching and shocks and keeps displays look-
ing pristine. The Group has drawn on its highly
ing pristine. The Group has drawn on its highly
advanced and diverse technologies developed
advanced and diverse technologies developed
over many years to create a cover glass for
over many years to create a cover glass for
today’ s generation. Demonstrating material
today’ s generation. Demonstrating material
properties never seen before, Dragontrail™ is
properties never seen before, Dragontrail™ is
attracting attention from device manufacturers
attracting attention from device manufacturers
all over the world.
all over the world.
M
M
a
a
r
r
k
k
e
e
t
t
E
E
y
y
e
e
s
s
Rapid Growth of the Global Markets for
Rapid Growth of the Global Markets for
Smartphones and Tablet PCs
Smartphones and Tablet PCs
The number of smartphones shipped globally shot up
The number of smartphones shipped globally shot up
from about 200 million units in 2009 to 500 million units
from about 200 million units in 2009 to 500 million units
in 2011. Likewise, shipments of tablet PCs, which took
in 2011. Likewise, shipments of tablet PCs, which took
the market by storm from 2010, reached almost 80 mil-
the market by storm from 2010, reached almost 80 mil-
lion units in 2011—around four times the amount in the
lion units in 2011—around four times the amount in the
previous year. Driving the trend is the introduction of
previous year. Driving the trend is the introduction of
3G-capable mobile phones by major manufacturers and
3G-capable mobile phones by major manufacturers and
compatible 3G services made available in countries
compatible 3G services made available in countries
around the world, along with the popularity of social
around the world, along with the popularity of social
media and the spreading usage of applications and
media and the spreading usage of applications and
content tailored to these devices. The markets for
content tailored to these devices. The markets for
smartphones and tablet PCs are expected to grow
smartphones and tablet PCs are expected to grow
steadily, with shipments forecast at about 1.3 billion
steadily, with shipments forecast at about 1.3 billion
units and about 300 million units, respectively, in 2015.
units and about 300 million units, respectively, in 2015.
Shipments of Smartphones and Tablet PCs
Shipments of Smartphones and Tablet PCs
(in-house research)
(in-house research)
(Millions of units)
(Millions of units)
Smartphones
Smartphones
Tablet PCs
Tablet PCs
™
™
1,287
1,287
1,133
1,133
929
929
768
768
528
528
174
174
0
0
0
0
267
267
19
19
169
169
219
219
271
271
73
73
103
103
2009
2009
2010
2010
2011
2011
2012
2012
2013
2013
2014
2014
2015
2015
1,500
1,500
1,000
1,000
500
500
Dragontrail™ is a specialty glass that
Dragontrail™ is a specialty glass that
i s h i g h l y r e c e p t i v e t o c h e m i c a l
i s h i g h l y r e c e p t i v e t o c h e m i c a l
strengthening. It is designed for use
strengthening. It is designed for use
as touch panel cover glass with smart-
as touch panel cover glass with smart-
phones, tablet PCs and other devices.
phones, tablet PCs and other devices.
The AGC Group has launched a pro-
The AGC Group has launched a pro-
motional campaign centered on the
motional campaign centered on the
image of a dragon for this revolution-
image of a dragon for this revolution-
ary new product.
ary new product.
Developing Specialty Glass for Protecting Displays
Developing Specialty Glass for Protecting Displays
and Touch Panels from Shocks and Scratches
and Touch Panels from Shocks and Scratches
The markets for smartphones and tablet PCs equipped
The markets for smartphones and tablet PCs equipped
with touch panels are growing on a global scale. The
with touch panels are growing on a global scale. The
displays and touch panels of these mobile devices not
displays and touch panels of these mobile devices not
only need to be cared for because the LCD screen is
only need to be cared for because the LCD screen is
directly touched during operations, but they also require
directly touched during operations, but they also require
protection from shocks that can result from dropping the
protection from shocks that can result from dropping the
device while on the move, and scratches that might occur
device while on the move, and scratches that might occur
from scraping inside carrying bags.
from scraping inside carrying bags.
To provide an ideal material for protecting displays and
To provide an ideal material for protecting displays and
touch panels, AGC Group has developed a cover glass that
touch panels, AGC Group has developed a cover glass that
realizes a level of strength far beyond that of conventionally
realizes a level of strength far beyond that of conventionally
used soda-lime glass, and a highly scratch-resistant, glossy
used soda-lime glass, and a highly scratch-resistant, glossy
texture impossible to attain with resin display covers.
texture impossible to attain with resin display covers.
With a Proactive Approach from Customers’
With a Proactive Approach from Customers’
Product Design Stage, Seeking Materials Needed
Product Design Stage, Seeking Materials Needed
in the Next Generation
in the Next Generation
Development of Dragontrail™ commenced in December
Development of Dragontrail™ commenced in December
2007. After listening to opinions from the industrial design
2007. After listening to opinions from the industrial design
division of an electronic device manufacturer who stresses
division of an electronic device manufacturer who stresses
the importance of advanced design and the texture of
the importance of advanced design and the texture of
materials, the AGC Group came to recognize the need for
materials, the AGC Group came to recognize the need for
a completely new cover glass like nothing seen before—
a completely new cover glass like nothing seen before—
strong enough not to break even if dropped, and with a
strong enough not to break even if dropped, and with a
texture that radiates beauty and refinement.
texture that radiates beauty and refinement.
The Group’ s customers are mostly manufacturers of
The Group’ s customers are mostly manufacturers of
materials and components such as liquid crystal panels. In
materials and components such as liquid crystal panels. In
a highly innovative field like electronic devices, however,
a highly innovative field like electronic devices, however,
there are many cases in which the manufacturer of a
there are many cases in which the manufacturer of a
finished product decides on the raw materials and com-
finished product decides on the raw materials and com-
ponents used in their products. In an effort to incorporate
ponents used in their products. In an effort to incorporate
AGC products into the basic design of finished products,
AGC products into the basic design of finished products,
the AGC Group approaches not only direct customers but
the AGC Group approaches not only direct customers but
also the manufacturers of finished products from the initial
also the manufacturers of finished products from the initial
product design stage.
product design stage.
It was in this context that the AGC Group responded
It was in this context that the AGC Group responded
to the need for an all-new cover glass. Smartphones
to the need for an all-new cover glass. Smartphones
equipped with touch panels were only beginning to
equipped with touch panels were only beginning to
appear at that time, but the Group expected a bright
appear at that time, but the Group expected a bright
future for cover glass, and decided to cultivate it as a
future for cover glass, and decided to cultivate it as a
Group core product to follow its glass substrates for flat-
Group core product to follow its glass substrates for flat-
panel displays (FPDs). Using commercially successful glass
panel displays (FPDs). Using commercially successful glass
for chemical strengthening as a point of reference, the
for chemical strengthening as a point of reference, the
Group designated researchers specializing in materials
Group designated researchers specializing in materials
development from AGC Research Center to create glass
development from AGC Research Center to create glass
that is stronger and more scratch-resistant than its previ-
that is stronger and more scratch-resistant than its previ-
ous materials, and at the same time, brought together per-
ous materials, and at the same time, brought together per-
sonnel involved in
sonnel involved in
glass melting and
glass melting and
mold processing from
mold processing from
A G C P r o d u c t i o n
A G C P r o d u c t i o n
Technology Center to
Technology Center to
swiftly prepare for
swiftly prepare for
mass production.
mass production.
Aiming for smooth
Aiming for smooth
project management,
project management,
Dragontrail™
Dragontrail™
cover glass for
cover glass for
touch panels
touch panels
Glass substrates
Glass substrates
for touch panels
for touch panels
Glass substrates
Glass substrates
for display devices
for display devices
ings, which have a lifespan of several years to several
ings, which have a lifespan of several years to several
decades. In comparison, the product lifecycle of electronic
decades. In comparison, the product lifecycle of electronic
devices is several years at longest, and products with a
devices is several years at longest, and products with a
short lifespan are generally upgraded to a new model only
short lifespan are generally upgraded to a new model only
about half a year after their release. Accordingly, develop-
about half a year after their release. Accordingly, develop-
ment periods are also comparatively shorter. With no pre-
ment periods are also comparatively shorter. With no pre-
vious experience in such short-term development cycles,
vious experience in such short-term development cycles,
the AGC Group responded to customer requests to pro-
the AGC Group responded to customer requests to pro-
vide new prototypes within a month or even just a week.
vide new prototypes within a month or even just a week.
group
group
To create an environment conducive to swift prod-
To create an environment conducive to swift prod-
members in
members in
uct development, the AGC Group undertook various in-
uct development, the AGC Group undertook various in-
charge of sales and
charge of sales and
house measures to help the project members efficiently
house measures to help the project members efficiently
technology planning
technology planning
focus on their work. The speed of prototype production
focus on their work. The speed of prototype production
served as a bridge between
served as a bridge between
gradually improved, and in 2008, the customer adopted
gradually improved, and in 2008, the customer adopted
customers and the development team.
customers and the development team.
the Group’ s specialty glass for chemical strengthening for
the Group’ s specialty glass for chemical strengthening for
its new smartphones. The AGC Group began mass pro-
its new smartphones. The AGC Group began mass pro-
Focusing on Speeding Up Materials Development
Focusing on Speeding Up Materials Development
duction from that time onward.
duction from that time onward.
According to the Lifecycles of Customers’ Products
According to the Lifecycles of Customers’ Products
The AGC Group has an especially high degree of techni-
The AGC Group has an especially high degree of techni-
cal expertise in designing the composition of glass by
cal expertise in designing the composition of glass by
applying various techniques to control its material proper-
applying various techniques to control its material proper-
ties, including hardness, uniformity, transparency,
ties, including hardness, uniformity, transparency,
strength, scratch-resistance and density. In the Dragontrail
strength, scratch-resistance and density. In the Dragontrail
™ project, the Group successfully achieved the composi-
™ project, the Group successfully achieved the composi-
tion of the new glass after the first six months or so.
tion of the new glass after the first six months or so.
When prototypes were being evaluated by custom-
When prototypes were being evaluated by custom-
ers, however, problems arose related to the speed of pro-
ers, however, problems arose related to the speed of pro-
totype development. Products that the Group has tradi-
totype development. Products that the Group has tradi-
tionally dealt with were glass for automobiles and build-
tionally dealt with were glass for automobiles and build-
19
19
AGC Report 2012
AGC Report 2012
AGC Report 2012 20
AGC Report 2012 20
Feature 2
Feature 2
Driving the Evolution of Smartphones and Tablet PCs
Driving the Evolution of Smartphones and Tablet PCs
The Future is
The Future is
Now with
Now with
™
™
The AGC Group introduces Dragontrail™—a
The AGC Group introduces Dragontrail™—a
revolutionary cover glass that is resistant to
revolutionary cover glass that is resistant to
scratching and shocks and keeps displays look-
scratching and shocks and keeps displays look-
ing pristine. The Group has drawn on its highly
ing pristine. The Group has drawn on its highly
advanced and diverse technologies developed
advanced and diverse technologies developed
over many years to create a cover glass for
over many years to create a cover glass for
today’ s generation. Demonstrating material
today’ s generation. Demonstrating material
properties never seen before, Dragontrail™ is
properties never seen before, Dragontrail™ is
attracting attention from device manufacturers
attracting attention from device manufacturers
all over the world.
all over the world.
M
M
a
a
r
r
k
k
e
e
t
t
E
E
y
y
e
e
s
s
Rapid Growth of the Global Markets for
Rapid Growth of the Global Markets for
Smartphones and Tablet PCs
Smartphones and Tablet PCs
The number of smartphones shipped globally shot up
The number of smartphones shipped globally shot up
from about 200 million units in 2009 to 500 million units
from about 200 million units in 2009 to 500 million units
in 2011. Likewise, shipments of tablet PCs, which took
in 2011. Likewise, shipments of tablet PCs, which took
the market by storm from 2010, reached almost 80 mil-
the market by storm from 2010, reached almost 80 mil-
lion units in 2011—around four times the amount in the
lion units in 2011—around four times the amount in the
previous year. Driving the trend is the introduction of
previous year. Driving the trend is the introduction of
3G-capable mobile phones by major manufacturers and
3G-capable mobile phones by major manufacturers and
compatible 3G services made available in countries
compatible 3G services made available in countries
around the world, along with the popularity of social
around the world, along with the popularity of social
media and the spreading usage of applications and
media and the spreading usage of applications and
content tailored to these devices. The markets for
content tailored to these devices. The markets for
smartphones and tablet PCs are expected to grow
smartphones and tablet PCs are expected to grow
steadily, with shipments forecast at about 1.3 billion
steadily, with shipments forecast at about 1.3 billion
units and about 300 million units, respectively, in 2015.
units and about 300 million units, respectively, in 2015.
Shipments of Smartphones and Tablet PCs
Shipments of Smartphones and Tablet PCs
(in-house research)
(in-house research)
(Millions of units)
(Millions of units)
1,500
1,500
Smartphones
Smartphones
Tablet PCs
Tablet PCs
™
™
1,287
1,287
1,133
1,133
Dragontrail™ is a specialty glass that
Dragontrail™ is a specialty glass that
i s h i g h l y r e c e p t i v e t o c h e m i c a l
i s h i g h l y r e c e p t i v e t o c h e m i c a l
strengthening. It is designed for use
strengthening. It is designed for use
as touch panel cover glass with smart-
as touch panel cover glass with smart-
phones, tablet PCs and other devices.
phones, tablet PCs and other devices.
The AGC Group has launched a pro-
The AGC Group has launched a pro-
motional campaign centered on the
motional campaign centered on the
image of a dragon for this revolution-
image of a dragon for this revolution-
ary new product.
ary new product.
1,000
1,000
500
500
929
929
768
768
528
528
174
174
0
0
0
0
267
267
19
19
169
169
219
219
271
271
73
73
103
103
2009
2009
2010
2010
2011
2011
2012
2012
2013
2013
2014
2014
2015
2015
Developing Specialty Glass for Protecting Displays
Developing Specialty Glass for Protecting Displays
materials and components such as liquid crystal panels. In
materials and components such as liquid crystal panels. In
and Touch Panels from Shocks and Scratches
and Touch Panels from Shocks and Scratches
a highly innovative field like electronic devices, however,
a highly innovative field like electronic devices, however,
there are many cases in which the manufacturer of a
there are many cases in which the manufacturer of a
The markets for smartphones and tablet PCs equipped
The markets for smartphones and tablet PCs equipped
finished product decides on the raw materials and com-
finished product decides on the raw materials and com-
with touch panels are growing on a global scale. The
with touch panels are growing on a global scale. The
ponents used in their products. In an effort to incorporate
ponents used in their products. In an effort to incorporate
displays and touch panels of these mobile devices not
displays and touch panels of these mobile devices not
AGC products into the basic design of finished products,
AGC products into the basic design of finished products,
only need to be cared for because the LCD screen is
only need to be cared for because the LCD screen is
the AGC Group approaches not only direct customers but
the AGC Group approaches not only direct customers but
directly touched during operations, but they also require
directly touched during operations, but they also require
also the manufacturers of finished products from the initial
also the manufacturers of finished products from the initial
protection from shocks that can result from dropping the
protection from shocks that can result from dropping the
product design stage.
product design stage.
device while on the move, and scratches that might occur
device while on the move, and scratches that might occur
It was in this context that the AGC Group responded
It was in this context that the AGC Group responded
from scraping inside carrying bags.
from scraping inside carrying bags.
to the need for an all-new cover glass. Smartphones
to the need for an all-new cover glass. Smartphones
To provide an ideal material for protecting displays and
To provide an ideal material for protecting displays and
equipped with touch panels were only beginning to
equipped with touch panels were only beginning to
touch panels, AGC Group has developed a cover glass that
touch panels, AGC Group has developed a cover glass that
appear at that time, but the Group expected a bright
appear at that time, but the Group expected a bright
realizes a level of strength far beyond that of conventionally
realizes a level of strength far beyond that of conventionally
future for cover glass, and decided to cultivate it as a
future for cover glass, and decided to cultivate it as a
used soda-lime glass, and a highly scratch-resistant, glossy
used soda-lime glass, and a highly scratch-resistant, glossy
Group core product to follow its glass substrates for flat-
Group core product to follow its glass substrates for flat-
texture impossible to attain with resin display covers.
texture impossible to attain with resin display covers.
panel displays (FPDs). Using commercially successful glass
panel displays (FPDs). Using commercially successful glass
With a Proactive Approach from Customers’
With a Proactive Approach from Customers’
Group designated researchers specializing in materials
Group designated researchers specializing in materials
Product Design Stage, Seeking Materials Needed
Product Design Stage, Seeking Materials Needed
development from AGC Research Center to create glass
development from AGC Research Center to create glass
for chemical strengthening as a point of reference, the
for chemical strengthening as a point of reference, the
in the Next Generation
in the Next Generation
that is stronger and more scratch-resistant than its previ-
that is stronger and more scratch-resistant than its previ-
ous materials, and at the same time, brought together per-
ous materials, and at the same time, brought together per-
Development of Dragontrail™ commenced in December
Development of Dragontrail™ commenced in December
sonnel involved in
sonnel involved in
2007. After listening to opinions from the industrial design
2007. After listening to opinions from the industrial design
glass melting and
glass melting and
division of an electronic device manufacturer who stresses
division of an electronic device manufacturer who stresses
mold processing from
mold processing from
the importance of advanced design and the texture of
the importance of advanced design and the texture of
A G C P r o d u c t i o n
A G C P r o d u c t i o n
materials, the AGC Group came to recognize the need for
materials, the AGC Group came to recognize the need for
Technology Center to
Technology Center to
a completely new cover glass like nothing seen before—
a completely new cover glass like nothing seen before—
swiftly prepare for
swiftly prepare for
strong enough not to break even if dropped, and with a
strong enough not to break even if dropped, and with a
mass production.
mass production.
texture that radiates beauty and refinement.
texture that radiates beauty and refinement.
Aiming for smooth
Aiming for smooth
The Group’ s customers are mostly manufacturers of
The Group’ s customers are mostly manufacturers of
project management,
project management,
Dragontrail™
Dragontrail™
cover glass for
cover glass for
touch panels
touch panels
Glass substrates
Glass substrates
for touch panels
for touch panels
Glass substrates
Glass substrates
for display devices
for display devices
group
group
members in
members in
charge of sales and
charge of sales and
technology planning
technology planning
served as a bridge between
served as a bridge between
customers and the development team.
customers and the development team.
Focusing on Speeding Up Materials Development
Focusing on Speeding Up Materials Development
According to the Lifecycles of Customers’ Products
According to the Lifecycles of Customers’ Products
The AGC Group has an especially high degree of techni-
The AGC Group has an especially high degree of techni-
cal expertise in designing the composition of glass by
cal expertise in designing the composition of glass by
applying various techniques to control its material proper-
applying various techniques to control its material proper-
ties, including hardness, uniformity, transparency, strength,
ties, including hardness, uniformity, transparency, strength,
scratch-resistance and density. In the Dragontrail™ project,
scratch-resistance and density. In the Dragontrail™ project,
the Group successfully achieved the composition of the new
the Group successfully achieved the composition of the new
glass after the first six months or so.
glass after the first six months or so.
When prototypes were being evaluated by custom-
When prototypes were being evaluated by custom-
ers, however, problems arose related to the speed of pro-
ers, however, problems arose related to the speed of pro-
totype development. Products that the Group has tradi-
totype development. Products that the Group has tradi-
tionally dealt with were glass for automobiles and build-
tionally dealt with were glass for automobiles and build-
ings, which have a lifespan of several years to several
ings, which have a lifespan of several years to several
decades. In comparison, the product lifecycle of electronic
decades. In comparison, the product lifecycle of electronic
devices is several years at longest, and products with a
devices is several years at longest, and products with a
short lifespan are generally upgraded to a new model only
short lifespan are generally upgraded to a new model only
about half a year after their release. Accordingly, develop-
about half a year after their release. Accordingly, develop-
ment periods are also comparatively shorter. With no pre-
ment periods are also comparatively shorter. With no pre-
vious experience in such short-term development cycles,
vious experience in such short-term development cycles,
the AGC Group responded to customer requests to pro-
the AGC Group responded to customer requests to pro-
vide new prototypes within a month or even just a week.
vide new prototypes within a month or even just a week.
To create an environment conducive to swift prod-
To create an environment conducive to swift prod-
uct development, the AGC Group undertook various in-
uct development, the AGC Group undertook various in-
house measures to help the project members efficiently
house measures to help the project members efficiently
focus on their work. The speed of prototype production
focus on their work. The speed of prototype production
gradually improved, and in 2008, the customer adopted
gradually improved, and in 2008, the customer adopted
the Group’ s specialty glass for chemical strengthening for
the Group’ s specialty glass for chemical strengthening for
its new smartphones. The AGC Group began mass pro-
its new smartphones. The AGC Group began mass pro-
duction from that time onward.
duction from that time onward.
19
19
AGC Report 2012
AGC Report 2012
AGC Report 2012 20
AGC Report 2012 20
Feature 2
Feature 2
Driving the Evolution of Smartphones and Tablet PCs
Driving the Evolution of Smartphones and Tablet PCs
The Future is Now with
The Future is Now with
™
™
Key Technology
Key Technology
Mass Production and Larger Sized Glass Sheets
Mass Production and Larger Sized Glass Sheets
Optimally Achieved with the Float Method
Optimally Achieved with the Float Method
The float method is a means to form glass by horizontally float-
The float method is a means to form glass by horizontally float-
ing it on molten tin from a large furnace. Highly suitable for
ing it on molten tin from a large furnace. Highly suitable for
large volume and large-sized glass production, the float
large volume and large-sized glass production, the float
method is widely used to manufacture architectural and auto-
method is widely used to manufacture architectural and auto-
motive glass. The AGC Group succeeded in the mass produc-
motive glass. The AGC Group succeeded in the mass produc-
tion of FPD glass substrates by the float method for the first
tion of FPD glass substrates by the float method for the first
time in the world, and successfully increased both area size
time in the world, and successfully increased both area size
and productivity of FPD glass substrates. Today, this method is
and productivity of FPD glass substrates. Today, this method is
fully utilized in efficient mass-production of Dragontrail™.
fully utilized in efficient mass-production of Dragontrail™.
The Float Method for Flat Glass Production
The Float Method for Flat Glass Production
Opening for feeding raw glass materials
Opening for feeding raw glass materials
Refining Furnace
Refining Furnace
Annealing
Annealing
Melting Furnace
Melting Furnace
Float bath (cross-section view)
Float bath (cross-section view)
Regenerator
Regenerator
Glass
Glass
Molten Tin
Molten Tin
In January 2011, the AGC Group announced
In January 2011, the AGC Group announced
worldwide that it would capitalize on the rapidly grow-
worldwide that it would capitalize on the rapidly grow-
ing demand for smartphones and tablet PCs with a
ing demand for smartphones and tablet PCs with a
newly developed specialty glass designed especially for
newly developed specialty glass designed especially for
these devices. Calling the product “Dragontrail™,” the
these devices. Calling the product “Dragontrail™,” the
Group held press conferences in various places around
Group held press conferences in various places around
the world.
the world.
Establishing a Stable Supply System to
Establishing a Stable Supply System to
Meet Growing Demand
Meet Growing Demand
Customers have lauded Dragontrail™ not only for its
Customers have lauded Dragontrail™ not only for its
excellent strength and scratch-resistance, but also
excellent strength and scratch-resistance, but also
because it can be manufactured efficiently using the float
because it can be manufactured efficiently using the float
method, a manufacturing process that is best suited for
method, a manufacturing process that is best suited for
producing large volumes of flat glass. New float glass
producing large volumes of flat glass. New float glass
facilities were installed at the Group’ s Takasago Plant in
facilities were installed at the Group’ s Takasago Plant in
December 2011, thereby improving the Group’ s ability
December 2011, thereby improving the Group’ s ability
to offer a stable supply of the product in line with grow-
to offer a stable supply of the product in line with grow-
ing demand.
ing demand.
Along with this effort to keep
Along with this effort to keep
Dragontrail™ in stable supply and
Dragontrail™ in stable supply and
further improve product performance,
further improve product performance,
the AGC Group is working to develop
the AGC Group is working to develop
and provide high-value-added materi-
and provide high-value-added materi-
als that are ahead of their time, with
als that are ahead of their time, with
the view to broaden the applications
the view to broaden the applications
for this product as cover glass not only for smartphones
for this product as cover glass not only for smartphones
and tablet PCs but also computer displays, car navigation
and tablet PCs but also computer displays, car navigation
systems and flat-panel televisions.
systems and flat-panel televisions.
Cutting
Cutting
Words from Key Personnel Involved in the Dragontrail™ Project
Words from Key Personnel Involved in the Dragontrail™ Project
Responding to the Growing
Responding to the Growing
Usage of Touch Panels by
Usage of Touch Panels by
Providing Cover Glass Best
Providing Cover Glass Best
Suited for All Applications
Suited for All Applications
Nobuhiko Imajyo
Nobuhiko Imajyo
General Manager, Business Planning Office,
General Manager, Business Planning Office,
Electronics Company
Electronics Company
Today, touch panel operation is not limited to smartphones
Today, touch panel operation is not limited to smartphones
and tablet PCs, but is also used in a variety of electronic prod-
and tablet PCs, but is also used in a variety of electronic prod-
ucts, including digital cameras and multifunction remote con-
ucts, including digital cameras and multifunction remote con-
trols for televisions and hard disk recorders. In the field of
trols for televisions and hard disk recorders. In the field of
personal computers, the recent Ultrabook™1 incorporates
personal computers, the recent Ultrabook™1 incorporates
both a keyboard and a touch panel. Furthermore, with new
both a keyboard and a touch panel. Furthermore, with new
operating systems that support touch panel operations sched-
operating systems that support touch panel operations sched-
uled for release in this year, notebook PCs equipped with
uled for release in this year, notebook PCs equipped with
touch panel operability are expected to enter the mainstream.
touch panel operability are expected to enter the mainstream.
Similarly, in the automotive industry, vehicle console panels are
Similarly, in the automotive industry, vehicle console panels are
being fitted with touch panels, and all kinds of equipment,
being fitted with touch panels, and all kinds of equipment,
including car stereos, navigations systems and air conditioners
including car stereos, navigations systems and air conditioners
are being developed to incorporate indicators and touch
are being developed to incorporate indicators and touch
panels. As the usages of such displays and touch panels
panels. As the usages of such displays and touch panels
expand, the AGC Group is capitalizing on the properties of
expand, the AGC Group is capitalizing on the properties of
Dragontrail™, which can be produced in various thicknesses,
Dragontrail™, which can be produced in various thicknesses,
with the plan to broaden its applications in even more fields.
with the plan to broaden its applications in even more fields.
Dragontrail™ offers the potential to contribute to the design
Dragontrail™ offers the potential to contribute to the design
of all of these devices. It can be
of all of these devices. It can be
used not only as the main glass
used not only as the main glass
component of smartphones,
component of smartphones,
for instance, but could also be
for instance, but could also be
considered for designs that
considered for designs that
cover the entire body of a
cover the entire body of a
phone in glass.
phone in glass.
1 Ultrabook™ is a registered
1 Ultrabook™ is a registered
trademark of Intel Corporation
trademark of Intel Corporation
Dragontrail™ used in automotive
Dragontrail™ used in automotive
applications
applications
Dragontrail™ Featured in a Range of Media in
Dragontrail™ Featured in a Range of Media in
Japan and Overseas
Japan and Overseas
“Dragontrail™ is multiple times stronger than soda-lime
“Dragontrail™ is multiple times stronger than soda-lime
glass commonly used in windows, resists scratches and has
glass commonly used in windows, resists scratches and has
a ‘beautiful, pristine’ finish. A brief test by AP proved
a ‘beautiful, pristine’ finish. A brief test by AP proved
impressive, with the glass showing virtually no damage after
impressive, with the glass showing virtually no damage after
being scratched hard for several seconds with a key.”—Japan
being scratched hard for several seconds with a key.”—Japan
Times (AP/Aflo), January 22, 2011 edition
Times (AP/Aflo), January 22, 2011 edition
“The AGC Group will develop “Dragontrail™,” a cover glass
“The AGC Group will develop “Dragontrail™,” a cover glass
for touchscreen panels, into a new pillar of earnings... The
for touchscreen panels, into a new pillar of earnings... The
press conference for the product was held with simultaneous
press conference for the product was held with simultaneous
interpretation into English. In addition, the press release was
interpretation into English. In addition, the press release was
issued not only in Japan but also in Europe, the United States,
issued not only in Japan but also in Europe, the United States,
China, South Korea and Chinese Taipei. Such a multilingual
China, South Korea and Chinese Taipei. Such a multilingual
announcement is not usual for the AGC Group, indicating the
announcement is not usual for the AGC Group, indicating the
strong emphasis that the Group places on the product.—Nikkei
strong emphasis that the Group places on the product.—Nikkei
Sangyo Shimbun, January 25, 2011 edition
Sangyo Shimbun, January 25, 2011 edition
Note English translation by Asahi Glass
Note English translation by Asahi Glass
Dragontrail™ attracted considerable
Dragontrail™ attracted considerable
interest from the many visitors to the
interest from the many visitors to the
AGC exhibit at SID Display Week
AGC exhibit at SID Display Week
2011, the Society for Information
2011, the Society for Information
Display’s Symposium, Seminar, and
Display’s Symposium, Seminar, and
Exhibition, held in Los Angeles,
Exhibition, held in Los Angeles,
United States, in May 2011.
United States, in May 2011.
A video presentation of Dragontrail™, including a video showing its
A video presentation of Dragontrail™, including a video showing its
strength against a hammer blow, is available on YouTube™1.
strength against a hammer blow, is available on YouTube™1.
1 YouTube™ is a registered trademark of Google Corporation.
1 YouTube™ is a registered trademark of Google Corporation.
Dragontrail™ Receives the 2011 Nikkei
Dragontrail™ Receives the 2011 Nikkei
Superior Products and Services Award2 from
Superior Products and Services Award2 from
the Nikkei Sangyo Shimbun and Praise from
the Nikkei Sangyo Shimbun and Praise from
the Review Committee
the Review Committee
Comments from the Review Committee
Comments from the Review Committee
Ken Sakamura
Ken Sakamura
Professor, University of Tokyo Interfaculty Initiative in Information Studies
Professor, University of Tokyo Interfaculty Initiative in Information Studies
“While overseas companies are increasing their presence in
“While overseas companies are increasing their presence in
recent years, these award-winning products reminded me
recent years, these award-winning products reminded me
that Japan still has a number of technologies that we can be
that Japan still has a number of technologies that we can be
proud of to the world. The materials- and parts-related tech-
proud of to the world. The materials- and parts-related tech-
nology, which Japan has been good at, is also evolving every
nology, which Japan has been good at, is also evolving every
year, and AGC’ s “Dragontrail” is the very symbol of such
year, and AGC’ s “Dragontrail” is the very symbol of such
advancement. It is a world-class product that addresses the
advancement. It is a world-class product that addresses the
expanding market for smart phones.”—Nikkei Sangyo
expanding market for smart phones.”—Nikkei Sangyo
Shimbun, January 4, 2012 edition (partial excerpt)
Shimbun, January 4, 2012 edition (partial excerpt)
Note English translation by Asahi Glass
Note English translation by Asahi Glass
2 An award given to particularly outstanding new products and services from
2 An award given to particularly outstanding new products and services from
those published in the range of Nikkei Inc. media concerns in 2011
those published in the range of Nikkei Inc. media concerns in 2011
21
21
AGC Report 2012
AGC Report 2012
AGC Report 2012 22
AGC Report 2012 22
Float bath (cross-section view)Melting FurnaceCuttingOpening for feeding raw glass materialsAnnealingRefining FurnaceRegeneratorGlassMolten TinIn January 2011, the AGC Group announced worldwide that it would capitalize on the rapidly grow-ing demand for smartphones and tablet PCs with a newly developed specialty glass designed especially for these devices. Calling the product “Dragontrail™,” the Group held press conferences in various places around the world.Customers have lauded Dragontrail™ not only for its excellent strength and scratch-resistance, but also because it can be manufactured efficiently using the float method, a manufacturing process that is best suited for producing large volumes of flat glass. New float glass facilities were installed at the Group’s Takasago Plant in December 2011, thereby improving the Group’s ability to offer a stable supply of the product in line with grow-ing demand. Along with this effort to keep Dragontrail™ in stable supply and further improve product performance, the AGC Group is working to develop and provide high-value-added materi-als that are ahead of their time, with the view to broaden the applications for this product as cover glass not only for smartphones and tablet PCs but also computer displays, car navigation systems and flat-panel televisions.“Dragontrail™ is multiple times stronger than soda-lime glass commonly used in windows, resists scratches and has a ‘beautiful, pristine’ finish. A brief test by AP proved impressive, with the glass showing virtually no damage after being scratched hard for several seconds with a key.”—Japan Times (AP/Aflo), January 22, 2011 edition“The AGC Group will develop “Dragontrail™,” a cover glass for touchscreen panels, into a new pillar of earnings... The press conference for the product was held with simultaneous interpretation into English. In addition, the press release was issued not only in Japan but also in Europe, the United States, China, South Korea and Taiwan. Such a multilingual announcement is not usual for the AGC Group, indicating the strong emphasis that the Group places on the product.—Nikkei Sangyo Shimbun, January 25, 2011 editionNote English translation by Asahi Glass“While overseas companies are increasing their presence in recent years, these award-winning products reminded me that Japan still has a number of technologies that we can be proud of to the world. The materials- and parts-related tech-nology, which Japan has been good at, is also evolving every year, and AGC’s “Dragontrail” is the very symbol of such advancement. It is a world-class product that addresses the expanding market for smart phones.”—Nikkei Sangyo Shimbun, January 4, 2012 edition (partial excerpt)Note English translation by Asahi Glass2 An award given to particularly outstanding new products and services from those published in the range of Nikkei Inc. media concerns in 2011A video presentation of Dragontrail™, including a video showing its strength against a hammer blow, is available on YouTube™1.Dragontrail™ attracted considerable interest from the many visitors to the AGC exhibit at SID Display Week 2011, the Society for Information Display’s Symposium, Seminar, and Exhibition, held in Los Angeles, United States, in May 2011.1 YouTube™ is a registered trademark of Google Corporation.Comments from the Review CommitteeKen Sakamura Professor, University of Tokyo Interfaculty Initiative in Information StudiesThe float method is a means to form glass by horizontally float-ing it on molten tin from a large furnace. Highly suitable for large volume and large-sized glass production, the float method is widely used to manufacture architectural and auto-motive glass. The AGC Group succeeded in the mass produc-tion of FPD glass substrates by the float method for the first time in the world, and successfully increased both area size and productivity of FPD glass substrates. Today, this method is fully utilized in efficient mass-production of Dragontrail™.Today, touch panel operation is not limited to smartphones and tablet PCs, but is also used in a variety of electronic prod-ucts, including digital cameras and multifunction remote con-trols for televisions and hard disk recorders. In the field of personal computers, the recent Ultrabook™1 incorporates both a keyboard and a touch panel. Furthermore, with new operating systems that support touch panel operations sched-uled for release in this year, notebook PCs equipped with touch panel operability are expected to enter the mainstream. Similarly, in the automotive industry, vehicle console panels are being fitted with touch panels, and all kinds of equipment, including car stereos, navigations systems and air conditioners are being developed to incorporate indicators and touch panels. As the usages of such displays and touch panels expand, the AGC Group is capitalizing on the properties of Dragontrail™, which can be produced in various thicknesses, with the plan to broaden its applications in even more fields.Dragontrail™ offers the potential to contribute to the design of all of these devices. It can be used not only as the main glass component of smartphones, for instance, but could also be considered for designs that cover the entire body of a phone in glass.Dragontrail™ used in automotive applications1 Ultrabook™ is a registered trademark of Intel CorporationThe Float Method for Flat Glass ProductionMass Production and Larger Sized Glass Sheets Optimally Achieved with the Float MethodGeneral Manager, Business Planning Office, Electronics CompanyNobuhiko ImajyoKey TechnologyWords from Key Personnel Involved in the Dragontrail™ ProjectDragontrail™ Featured in a Range of Media in Japan and OverseasDragontrail™ Receives the 2011 Nikkei Superior Products and Services Award2 from theNikkei Sangyo Shimbun and Praise from the Review CommitteeDriving the Evolution of Smartphones and Tablet PCsThe Future is Now with Feature 2™Establishing a Stable Supply System to Meet Growing DemandResponding to the Growing Usage of Touch Panels by Providing Cover Glass Best Suited for All ApplicationsAGC Report 2012 21AGC Report 2012 22 1Chapter
Business Overview
The AGC Group contributes to the realization of a sustainable
society through its various business activities, such as glass,
electronics, and chemicals.
Operations
Sales Ratio
Products/Services
(Market Share of Primary Products)
Activity Highlights
Technology
Environment
Global Business
Glass
Operations
46%
Electronics
Operations
32%
Chemicals
Operations
20%
• Flat glass
No.1 in World
Float glass, low-emissivity (Low-E)
glass, double glazing glass for solar
control/heat-insulation, safety glass,
decorative glass, glass for solar
power systems
• Automotive glass
No.1 in World
Tempered automotive glass,
laminated automotive glass
• Display glass
Glass substrates for LCD-TFTs
No.2 in World
Glass substrates for PDPs
No.1 in World
Specialty glass for display
applications, glass substrates for
display devices, display-related
materials
• Electronics materials and parts
CMP slurry, glass frit and paste,
aspherical glass lenses (micro glass),
Carboglass™, synthetic quartz glass,
optical thin-film products
• Chlor-alkali & urethane
Raw materials for vinyl chloride
polymer, caustic soda, urethane
materials
• Fluorochemicals & specialty
chemicals
Fluoropolymers (ETFE)
No.1 in World
Water and oil repellents,
pharmaceutical and agrochemical
intermediates and active
ingredients, iodine-related
products, battery materials
Ceramics/
Others
• Ceramics
Various refractory materials, fine
ceramics, sputtering targets
• Logistics / Engineering
2%
• UV-blocking tempered glass “UV Verre
• Low-E double-glazing glass contributes to
• Entering the Brazilian market
P. 15
Premium™” automotive glass eliminates
approximately 99% of UV rays
P. 27
pleasant living that’s easier on the
environment
P. 28
• Stopray Ultravision™ 50 is a
high-performance Magneton coated glass
with a triple silver coating
• Total oxygen combustion dramatically
improves combustion efficiency during
glass production
P. 63
• In-flight melting greatly reduces the
amount of CO2 emitted during glass
manufacturing
P. 63
• Russia—One of the world’s largest glass
manufacturing facilities
P. 27
• 0.1 mm ultra-thin glass, the world's thinnest
• Glass-ceramics substrate “GCHP™”
glass manufactured by the float method
contributes to evolution of LED lighting
• Strengthening production in China for
TFT-LCD glass substrates
P. 32
P. 31
P. 31
• “Dragontrail™”, specialty glass for chemical
strengthening
P. 19
• Glass frit and paste contribute to improved
electrical properties as electrode binders
for photovoltaic devices
P. 38
• China (Shenzhen)—Setting up a production
line for TFT-LCD glass substrates
P. 32
• Strengthening of pharmaceutical and
agrochemical intermediates and active
ingredients operations through
fluorochemical technology
P. 35
• Fluorine ion-exchange membrane
• New production and sales site for
“Flemion™” to be used in the bilateral
cathode materials for lithium-ion batteries
offset credit system
P. 35
to be constructed in China
• 30% expansion of electrolysis capacity in
Indonesia
P. 36
Japan
Mexico
• CO2 emissions cut through introduction of
gas turbines
• Implementation of CO2 recovery and
recycling process using caustic soda
• Sputtering targets for transparent
conductive thin film for photovoltaic TCO
glass substrates
P. 38
23
AGC Report 2012
AGC Report 2012 24
1Chapter
Business Overview
The AGC Group contributes to the realization of a sustainable
society through its various business activities, such as glass,
electronics, and chemicals.
Operations
Sales Ratio
Products/Services
(Market Share of Primary Products)
Activity Highlights
Technology
Environment
Global Business
Glass
Operations
46%
• UV-blocking tempered glass “UV Verre
• Low-E double-glazing glass contributes to
• Entering the Brazilian market
P. 15
Premium™” automotive glass eliminates
approximately 99% of UV rays
P. 27
pleasant living that’s easier on the
environment
P. 28
• Stopray Ultravision™ 50 is a
high-performance Magneton coated glass
with a triple silver coating
• Total oxygen combustion dramatically
improves combustion efficiency during
glass production
P. 63
• In-flight melting greatly reduces the
amount of CO2 emitted during glass
manufacturing
P. 63
• Russia—One of the world’s largest glass
manufacturing facilities
P. 27
• 0.1 mm ultra-thin glass, the world's thinnest
glass manufactured by the float method
• Glass-ceramics substrate “GCHP™”
contributes to evolution of LED lighting
• Strengthening production in China for
TFT-LCD glass substrates
P. 32
P. 31
P. 31
Electronics
Operations
32%
• “Dragontrail™”, specialty glass for chemical
P. 19
strengthening
• Glass frit and paste contribute to improved
electrical properties as electrode binders
for photovoltaic devices
P. 38
• China (Shenzhen)—Setting up a production
line for TFT-LCD glass substrates
P. 32
Chemicals
Operations
20%
Ceramics/
Others
• Ceramics
Various refractory materials, fine
ceramics, sputtering targets
• Logistics / Engineering
2%
• Strengthening of pharmaceutical and
• Fluorine ion-exchange membrane
• New production and sales site for
agrochemical intermediates and active
ingredients operations through
fluorochemical technology
P. 35
“Flemion™” to be used in the bilateral
offset credit system
P. 35
cathode materials for lithium-ion batteries
to be constructed in China
• 30% expansion of electrolysis capacity in
Indonesia
P. 36
Japan
Mexico
• CO2 emissions cut through introduction of
gas turbines
• Implementation of CO2 recovery and
recycling process using caustic soda
• Sputtering targets for transparent
conductive thin film for photovoltaic TCO
glass substrates
P. 38
• Flat glass
No.1 in World
Float glass, low-emissivity (Low-E)
glass, double glazing glass for solar
control/heat-insulation, safety glass,
decorative glass, glass for solar
power systems
• Automotive glass
No.1 in World
Tempered automotive glass,
laminated automotive glass
• Display glass
Glass substrates for LCD-TFTs
No.2 in World
Glass substrates for PDPs
No.1 in World
Specialty glass for display
applications, glass substrates for
display devices, display-related
materials
• Electronics materials and parts
CMP slurry, glass frit and paste,
aspherical glass lenses (micro glass),
Carboglass™, synthetic quartz glass,
optical thin-film products
• Chlor-alkali & urethane
Raw materials for vinyl chloride
polymer, caustic soda, urethane
materials
• Fluorochemicals & specialty
chemicals
Fluoropolymers (ETFE)
No.1 in World
Water and oil repellents,
pharmaceutical and agrochemical
intermediates and active
ingredients, iodine-related
products, battery materials
23
AGC Report 2012
AGC Report 2012 24
Sunergy™, pyrolytic coatedglass, from the Glass Company were used for Naberezhnaya Tower in Moscow (Russia)Glass Operations consist of businesses centered on the fields of flat glass and automotive glass. In the flat glass business, the AGC Group offers an array of flat glass products that meet the needs of each region: float glass, fabricated glass for architectural use, decorative glass, glass for solar power systems and other products. Emphasis is also placed on energy-saving glass products that can contribute to the reduction of environmen-tal impact, including products with heat insulation/shielding features and CSP glass mirrors.In the automotive glass business, global marketing and the Group’s most advanced technologies are utilized in the pursuit of value-greater safety, excellent design, interior comfort and environmental performance. The value-added automotive glass products the AGC Group offers include UV-cut glass, IR-cut glass, and glass antennae. The Group’s flat glass and automotive glass (new vehicle market) businesses hold a leading share of the world market. In fiscal 2011, the Group’s sales for the flat glass sector and the automotive glass sector were 325.4 billion yen and 229 billion yen respectively, resulting in net sales of 554.4 billion yen and operating income of 9.9 billion yen for the Glass Operations.525.0570.9554.4Automotive glass41%Flat glass59%Sector-Based Sales Share6004000300200100500200920102011Sales Trends(Billion yen)GlassOperationssales554.4billion yen(FY)Low emissivity (Low-E) double glazing glassPhotovoltaic cover glass “Solite™”“Vitro Color Glass™” and “Lacobel™” for interior wall cladding“UV Verre Premium™” for automotive glassAround the world, the AGC Group provides high-performance products that bring new value to the fields of construction, automobiles, and solar power generation.Glass OperationsBusinessOverviewChapter 1Description of BusinessMarket share rankings of major products (AGC estimates)Flat glassAutomotive glassNo. 1 worldwideNo. 1 worldwideChemicalsOperationsElectronicsOperationsGlassOperationsCeramics/OthersAGC Report 2012 25AGC Report 2012 26 Sunergy™, pyrolytic coatedglass, from the Glass Company were used for Naberezhnaya Tower in Moscow (Russia)Glass Operations consist of businesses centered on the fields of flat glass and automotive glass. In the flat glass business, the AGC Group offers an array of flat glass products that meet the needs of each region: float glass, fabricated glass for architectural use, decorative glass, glass for solar power systems and other products. Emphasis is also placed on energy-saving glass products that can contribute to the reduction of environmen-tal impact, including products with heat insulation/shielding features and CSP glass mirrors.In the automotive glass business, global marketing and the Group’s most advanced technologies are utilized in the pursuit of value-greater safety, excellent design, interior comfort and environmental performance. The value-added automotive glass products the AGC Group offers include UV-cut glass, IR-cut glass, and glass antennae. The Group’s flat glass and automotive glass (new vehicle market) businesses hold a leading share of the world market. In fiscal 2011, the Group’s sales for the flat glass sector and the automotive glass sector were 325.4 billion yen and 229 billion yen respectively, resulting in net sales of 554.4 billion yen and operating income of 9.9 billion yen for the Glass Operations.525.0570.9554.4Automotive glass41%Flat glass59%Sector-Based Sales Share6004000300200100500200920102011Sales Trends(Billion yen)GlassOperationssales554.4billion yen(FY)Low emissivity (Low-E) double-glazing glassPhotovoltaic cover glass “Solite™”“Vitro Color Glass™” and “Lacobel™” for interior wall cladding“UV Verre Premium™” for automotive glassAround the world, the AGC Group provides high-performance products that bring new value to the fields of construction, automobiles, and solar power generation.Glass OperationsBusinessOverviewChapter 1Description of BusinessMarket share rankings of major products (AGC estimates)Flat glassAutomotive glassNo. 1 worldwideNo. 1 worldwideChemicalsOperationsElectronicsOperationsGlassOperationsCeramics/OthersAGC Report 2012 25AGC Report 2012 26 Glass
Operations
Electronics
Operations
Chemicals
Operations
Ceramics/
Others
Environment
the Environment
Low-E Double-glazing Glass Contributes to Pleasant Living That’s Easier on
Low-E double-glazing glass is energy-saving window glass in
example, Stopray Ultravision 50 is a new energy-saving window
which the heat insulating and solar control performance of
glass with three layers of silver coating. This product realizes
double-glazing glass have been further improved by coating
extremely high selectivity in solar energy transmittance, blocking
one pane with a special metallic film. As general environmental
solar heat from outside at a level of 20% while allowing about
awareness has risen in recent years, strict standards for heat
50% of visible light to penetrate. Stopray Ultravision 50 is a beau-
insulation have been introduced for window glass in homes
tiful and highly efficient glass that leads the latest trends in archi-
and buildings, particularly in Europe and North America.
tectural design and satisfies demands for energy conservation.
Low-E double-glazing glass helps reduce energy consumption,
The AGC Group will continue to introduce state-of-the-art coat-
and its popularity is growing around the world. In response to
ing technologies and strive to develop even higher-performing
these needs, the AGC Group provides energy-saving glass for
products, developing and providing ideal Low-E double-glazing
use in the apertures of a variety of houses and buildings. For
glass for every region.
Low-E Double-glazing
Glass Structure
Special
metallic film
Glass
Low-E Double-glazing Glass Mechanism
In warm/hot regions:
In summer, effec-
tively shields solar
radiation and heat
f r o m t h e o u t s i d e
(solar control effect),
reducing air condi-
tioning use.
Spacer
Air space
In cold regions:
In winter, effectively
blocks cold air from
entering and warm
air from escaping
( h e a t i n s u l a t i n g
e f f e c t ) , r e d u c i n g
heater use.
Chapter 1
Business Overview
Glass Operations
Activity Highlights
Technology
UV-blocking tempered glass “UV Verre Premium™” automotive glass eliminates
approximately 99% of UV rays Winner, Nikkan Kogyo Shimbun’s “10 Best New Products of 2011” Award
Concern for health and beauty is resulting in mounting con-
sciousness of protection from ultraviolet (UV) rays. In an inde-
pendent AGC Group survey of drivers, many female drivers
said that they “were concerned about UV rays” in the areas
around car windows. In response to these customer concerns,
the Group began to develop high-performance UV-cut glass
for car windows. After overcoming many technological chal-
lenges, the Group successfully developed a high-performance
UV absorbent with scratch-resistant properties. The commer-
cial production of “UV Verre Premium™” began in December
2010. It is the first tempered automotive glass for automotive
door windows in the world1 to cut approximately 99% of UV
rays2. Since its release, UV Verre Premium™ has been rated
highly by car manufacturers, and it is being used in an increas-
ingly wide variety of cars, including the latest hybrids.
1 As of December 2010; survey conducted by AGC.
2 Measured by AGC based on ISO 9050 standards.
UV Verre Premium™
A test with a UV checker, which reacts when exposed
to ultraviolet rays.
The UV checker turned purple when the window was opened;
when shielded by UV Verre Premium™, the color fades away.
Exterior
Interior
Exterior
Interior
Global Business
Operating in Russia, the World’s Largest Glass Manufacturing Facility
At the AGC Group’ s Klin Plant, located approximately 80 km
northwest of Russia’ s capital, Moscow, the Group operates the
largest glass manufacturing facility in the world. This facility
was created to handle the future growth anticipated in the
Russian construction market, and is capable of producing
1,000 tons of glass per day, in thicknesses ranging from 4 to 12
mm. The plant also holds processing facilities for high-
performance heat-insulating coated glass, laminated glass and
decorative glass, enabling the production of high value-added
products. Particular to the plant are technological innovations
incorporated throughout the plant to efficiently turn out high
quality products, as is the ability to reduce energy consump-
tion during production. The AGC Group will continue to
advance into regions in which market expansion is anticipated
and actively expand its production capacity.
Klin Plant
Russia
Moscow
Klin Plant, located approximately 80 km
northwest of Moscow
One of the largest glass manufacturing
facilities in the world, in the Klin Plant
27
AGC Report 2012
AGC Report 2012 28
Technology
Environment
Glass
Operations
Electronics
Operations
Chemicals
Operations
Ceramics/
Others
Low-E Double-glazing Glass Contributes to Pleasant Living That’s Easier on
the Environment
Low-E double-glazing glass is energy-saving window glass in
which the heat insulating and solar control performance of
double-glazing glass have been further improved by coating
one pane with a special metallic film. As general environmental
awareness has risen in recent years, strict standards for heat
insulation have been introduced for window glass in homes
and buildings, particularly in Europe and North America.
Low-E double-glazing glass helps reduce energy consumption,
and its popularity is growing around the world. In response to
these needs, the AGC Group provides energy-saving glass for
use in the apertures of a variety of houses and buildings. For
example, Stopray Ultravision 50 is a new energy-saving window
glass with three layers of silver coating. This product realizes
extremely high selectivity in solar energy transmittance, blocking
solar heat from outside at a level of 20% while allowing about
50% of visible light to penetrate. Stopray Ultravision 50 is a beau-
tiful and highly efficient glass that leads the latest trends in archi-
tectural design and satisfies demands for energy conservation.
The AGC Group will continue to introduce state-of-the-art coat-
ing technologies and strive to develop even higher-performing
products, developing and providing ideal Low-E double-glazing
glass for every region.
Low-E Double-glazing
Glass Structure
Special
metallic film
Glass
Spacer
Air space
Low-E Double-glazing Glass Mechanism
In warm/hot regions:
In summer, effec-
tively shields solar
radiation and heat
f r o m t h e o u t s i d e
(solar control effect),
reducing air condi-
tioning use.
Exterior
Interior
In cold regions:
In winter, effectively
blocks cold air from
entering and warm
air from escaping
( h e a t i n s u l a t i n g
e f f e c t ) , r e d u c i n g
heater use.
Exterior
Interior
Chapter 1
Business Overview
Glass Operations
Activity Highlights
UV-blocking tempered glass “UV Verre Premium™” automotive glass eliminates
approximately 99% of UV rays Winner, Nikkan Kogyo Shimbun’s “10 Best New Products of 2011” Award
Concern for health and beauty is resulting in mounting con-
cial production of “UV Verre Premium™” began in December
sciousness of protection from ultraviolet (UV) rays. In an inde-
2010. It is the first tempered automotive glass for automotive
pendent AGC Group survey of drivers, many female drivers
door windows in the world1 to cut approximately 99% of UV
said that they “were concerned about UV rays” in the areas
rays2. Since its release, UV Verre Premium™ has been rated
around car windows. In response to these customer concerns,
highly by car manufacturers, and it is being used in an increas-
the Group began to develop high-performance UV-cut glass
ingly wide variety of cars, including the latest hybrids.
for car windows. After overcoming many technological chal-
1 As of December 2010; survey conducted by AGC.
lenges, the Group successfully developed a high-performance
2 Measured by AGC based on ISO 9050 standards.
UV absorbent with scratch-resistant properties. The commer-
UV Verre Premium™
A test with a UV checker, which reacts when exposed
The UV checker turned purple when the window was opened;
to ultraviolet rays.
when shielded by UV Verre Premium™, the color fades away.
Global Business
Operating in Russia, the World’s Largest Glass Manufacturing Facility
At the AGC Group’ s Klin Plant, located approximately 80 km
decorative glass, enabling the production of high value-added
northwest of Russia’ s capital, Moscow, the Group operates the
products. Particular to the plant are technological innovations
largest glass manufacturing facility in the world. This facility
incorporated throughout the plant to efficiently turn out high
was created to handle the future growth anticipated in the
quality products, as is the ability to reduce energy consump-
Russian construction market, and is capable of producing
tion during production. The AGC Group will continue to
1,000 tons of glass per day, in thicknesses ranging from 4 to 12
advance into regions in which market expansion is anticipated
mm. The plant also holds processing facilities for high-
and actively expand its production capacity.
performance heat-insulating coated glass, laminated glass and
Klin Plant
Russia
Moscow
Klin Plant, located approximately 80 km
northwest of Moscow
One of the largest glass manufacturing
facilities in the world, in the Klin Plant
27
AGC Report 2012
AGC Report 2012 28
The AGC Group’s Electronics Operations offer high value-added products in the display sector and the electronics materials and parts sector, which support the evolution of displays and electronics devices. In the display sector, the Group’s TFT-LCD glass and plasma display (PDP) glass boast a leading share of the world market. By leveraging its unique production methods and high-level production technologies, the Group is pursuing R&D of next-generation image display devices while also enhancing its international competitiveness. Its presence is increasingly acknowledged in the world of image displays, which serve as a key interface tying people and information networks together. In the electronic materials and parts sector, the Group’s product line-ups include semiconductor process mate-rials and parts, such as synthetic quartz glass and high-purity silicon carbide; display materials and parts used in PDP optical filters; optical components such as visibility compensation filters for CCD optical filters; and glass substrates for hard disks; each of which is making a contribution to the evolution of electronics devices. In fiscal 2011, the Group’s sales for the display sector and the electronics materials and parts sector were 331 billion yen and 55.6 billion yen respectively, resulting in net sales of 386.5 billion yen and operating income of 133.5 billion yen for the Electronics Operations.Electronics materials and parts14%Displays86%Sales TrendsSector-Based Sales Share3001000200400500(Billion yen)2009369.32010435.32011386.5Electronicssales386.5billion yen(FY)Market share rankings of major products (AGC estimates)Glass substrates for TFT-LCDsGlass substrates for PDPsNo. 2 worldwideNo. 1 worldwide“Dragontrail™” specialty glass for chemical strengtheningGlass substrates for TFTsSynthetic quartz glassVisibility compensation filtersElectronics OperationsDescription of BusinessThe Electronics Company’s glass for display panels brings innovation to graphic displaysUsing its unique manufacturing methods and high-level production technology, the AGC Group provides creative glass products to support the evolution of displays and electronic instruments.BusinessOverviewChapter 1ChemicalsOperationsElectronicsOperationsGlassOperationsCeramics/OthersAGC Report 2012 29AGC Report 2012 30 The AGC Group’s Electronics Operations offer high value-added products in the display sector and the electronics materials and parts sector, which support the evolution of displays and electronics devices. In the display sector, the Group’s TFT-LCD glass and plasma display (PDP) glass boast a leading share of the world market. By leveraging its unique production methods and high-level production technologies, the Group is pursuing R&D of next-generation image display devices while also enhancing its international competitiveness. Its presence is increasingly acknowledged in the world of image displays, which serve as a key interface tying people and information networks together. In the electronic materials and parts sector, the Group’s product line-ups include semiconductor process mate-rials and parts, such as synthetic quartz glass and high-purity silicon carbide; display materials and parts used in PDP optical filters; optical components such as visibility compensation filters for CCD optical filters; and glass substrates for hard disks; each of which is making a contribution to the evolution of electronics devices. In fiscal 2011, the Group’s sales for the display sector and the electronics materials and parts sector were 331 billion yen and 55.6 billion yen respectively, resulting in net sales of 386.5 billion yen and operating income of 133.5 billion yen for the Electronics Operations.Electronics materials and parts14%Displays86%Sales TrendsSector-Based Sales Share3001000200400500(Billion yen)2009369.32010435.32011386.5Electronicssales386.5billion yen(FY)Market share rankings of major products (AGC estimates)Glass substrates for TFT-LCDsGlass substrates for PDPsNo. 2 worldwideNo. 1 worldwide“Dragontrail™” specialty glass for chemical strengtheningGlass substrates for TFTsSynthetic quartz glassVisibility compensation filtersElectronics OperationsDescription of BusinessThe Electronics Company’s glass for display panels brings innovation to graphic displaysUsing its unique manufacturing methods and high-level production technology, the AGC Group provides creative glass products to support the evolution of displays and electronic instruments.BusinessOverviewChapter 1ChemicalsOperationsElectronicsOperationsGlassOperationsCeramics/OthersAGC Report 2012 29AGC Report 2012 30 Chapter 1
Business Overview
Electronics Operations
Activity Highlights
Glass
Operations
Electronics
Operations
Chemicals
Operations
Ceramics/
Others
Technology
Global Business
0.1 mm Ultra-Thin Glass, the World’s Thinnest Glass Manufactured by the Float
Method
Since early on, the AGC Group has been actively working to
make glass ultra-thin. In May 2011, using its years of high-level
process management expertise, the Group succeeded in
developing ultra-thin sheet glass. At 0.1 mm thick, the glass is
the thinnest in the world to be produced by the float method.
This ultra-thin glass can be rolled up like film. Not only will it
facilitate thinner LCD displays on cellular phones and other
equipment, it can also be fitted on curved surfaces and used in
flexible next-generation displays which users can roll into tubes
and carry with them. In addition, glass material is superior to the
existing resin and other films in terms of heat and chemical resis-
tance, electric insulation, and gas barrier qualities. It is anticipated
that new uses will be developed in various areas, including the
electronics and energy sectors, to exploit these characteristics.
A roll of ultra-thin glass
Ultra-thin glass
AGC Display Glass (Kunshan), new plant
Environment
Glass-Ceramics Substrate “GCHP™” Contributes to Evolution of LED Lighting
Strengthening Production in China for TFT-LCD Glass Substrates
Driven by increasing demand for LCD TVs and personal com-
Jiangsu Province which commenced operation in autumn of
puters, especially in fast-growing markets, growth in the global
2011. Equipped with a processing line that can handle up to
flat panel display market is expected to continue. Particularly in
eighth-generation TFT-LCD glass substrates (approximately
China, demand for TFT-LCD panels has been surging in recent
2,200 mm x approximately 2,400 mm), the new processing
years, and leading panel manufacturers are planning to build
plant is located in Shenzhen City, Guangdong Province, and
n e w p r o d u c t i o n p l a n t s f o r l a r g e - s i z e d L C D p a n e l s .
mass production is scheduled to start in 2012.
Consequently, demand for large-sized glass substrates, which
are a necessary part of panel production, is anticipated to
increase as well. In order to reliably respond to this expansion
of demand in the Chinese
market, the AGC Group
has built a second process-
ing plant in the country,
following its first TFT-LCD
glass substrate manufactur-
ing plant in Kunshan City,
China
AGC Display Glass (Kunshan)
AGC Display Glass (Shenzhen)
The spread of energy-saving LED lighting began with low
power products such as backlights for cellular phones, PCs and
LCD TVs. Lately, however, the range of applications has begun
expanding to include high power products, including general
indoor and outdoor lighting, interior and exterior lighting for
automobiles, street lamps, and tunnel lighting. These LED
lights get their increased intensity and improved endurance
from the glass-ceramics sub-
strate GCHP™. When LEDs
are used in high power appli-
cations, the amount of heat
t h e y g e n e r a t e i n c r e a s e s .
GCHP™ enhances the durabil-
ity of LEDs and enables them
t o b e u s e d i n h i g h p o w e r
applications as the glass-
ceramics substrate is more
reliable than the existing resin
GCHP™—a glass-
ceramics substrate
for high-power
LED lighting
or alumina substrates with regard to heat dissipation and
discoloration. In addition, its reflectivity is from 20 to 30%
higher than that of alumina substrates, so intensity may be
increased effectively. Since its release, GCHP™ has been held
in high regard by LED and automobile manufacturers both in
Japan and abroad, and is being adopted in products including
general lighting and automobiles, for various uses.
The Superiority of GCHP™ Glass-Ceramics Substrates as
Seen in an LED Package Cross Section
Alumina substrate
Glass-ceramics substrate “GCHP™”
Light
LED
Heat
Light
transmission
Light
LED
Heatsink
Heat
High
reflection
31
AGC Report 2012
AGC Report 2012 32
Glass
Operations
Electronics
Operations
Chemicals
Operations
Ceramics/
Others
0.1 mm Ultra-Thin Glass, the World’s Thinnest Glass Manufactured by the Float
Strengthening Production in China for TFT-LCD Glass Substrates
Global Business
Driven by increasing demand for LCD TVs and personal com-
puters, especially in fast-growing markets, growth in the global
flat panel display market is expected to continue. Particularly in
China, demand for TFT-LCD panels has been surging in recent
years, and leading panel manufacturers are planning to build
n e w p r o d u c t i o n p l a n t s f o r l a r g e - s i z e d L C D p a n e l s .
Consequently, demand for large-sized glass substrates, which
are a necessary part of panel production, is anticipated to
increase as well. In order to reliably respond to this expansion
of demand in the Chinese
market, the AGC Group
has built a second process-
ing plant in the country,
following its first TFT-LCD
glass substrate manufactur-
ing plant in Kunshan City,
AGC Display Glass (Kunshan), new plant
Jiangsu Province which commenced operation in autumn of
2011. Equipped with a processing line that can handle up to
eighth-generation TFT-LCD glass substrates (approximately
2,200 mm x approximately 2,400 mm), the new processing
plant is located in Shenzhen City, Guangdong Province, and
mass production is scheduled to start in 2012.
China
AGC Display Glass (Kunshan)
AGC Display Glass (Shenzhen)
Chapter 1
Business Overview
Electronics Operations
Activity Highlights
Technology
Method
Since early on, the AGC Group has been actively working to
equipment, it can also be fitted on curved surfaces and used in
make glass ultra-thin. In May 2011, using its years of high-level
flexible next-generation displays which users can roll into tubes
process management expertise, the Group succeeded in
and carry with them. In addition, glass material is superior to the
developing ultra-thin sheet glass. At 0.1 mm thick, the glass is
existing resin and other films in terms of heat and chemical resis-
the thinnest in the world to be produced by the float method.
tance, electric insulation, and gas barrier qualities. It is anticipated
This ultra-thin glass can be rolled up like film. Not only will it
that new uses will be developed in various areas, including the
facilitate thinner LCD displays on cellular phones and other
electronics and energy sectors, to exploit these characteristics.
A roll of ultra-thin glass
Ultra-thin glass
Environment
Glass-Ceramics Substrate “GCHP™” Contributes to Evolution of LED Lighting
The spread of energy-saving LED lighting began with low
or alumina substrates with regard to heat dissipation and
power products such as backlights for cellular phones, PCs and
discoloration. In addition, its reflectivity is from 20 to 30%
LCD TVs. Lately, however, the range of applications has begun
higher than that of alumina substrates, so intensity may be
expanding to include high power products, including general
increased effectively. Since its release, GCHP™ has been held
indoor and outdoor lighting, interior and exterior lighting for
in high regard by LED and automobile manufacturers both in
automobiles, street lamps, and tunnel lighting. These LED
Japan and abroad, and is being adopted in products including
lights get their increased intensity and improved endurance
general lighting and automobiles, for various uses.
from the glass-ceramics sub-
strate GCHP™. When LEDs
are used in high power appli-
cations, the amount of heat
t h e y g e n e r a t e i n c r e a s e s .
GCHP™ enhances the durabil-
ity of LEDs and enables them
t o b e u s e d i n h i g h p o w e r
applications as the glass-
ceramics substrate is more
reliable than the existing resin
LED lighting
GCHP™—a glass-
ceramics substrate
for high-power
The Superiority of GCHP™ Glass-Ceramics Substrates as
Seen in an LED Package Cross Section
Alumina substrate
Glass-ceramics substrate “GCHP™”
Light
LED
Heat
Light
transmission
Light
LED
Heatsink
Heat
High
reflection
31
AGC Report 2012
AGC Report 2012 32
Fluorochemicals and specialty chemicals38%Chlor-alkali and urethane62%Sales TrendsSector-Based Sales Share1000200300(Billion yen)2009233.72010260.12011248.6Chemicals Operations sales 248.6billion yen(FY)Fluon® fluoropolymer films used at the UNIQLO Shinsaibashi store Under the vision “Chemistry for a Blue Planet,” The AGC Group’s Chemicals Operations brings safety, reassurance and comfort to customers’ homes; and contributes to environmental conservation.“Asahi Guard™” fluorinated water and oil repellents“Lumiflon™” highly weather-resistant fluoropolymer resin for coatingFluoropolymer “Fluon® ETFE” used in tubes and hosesThe Chemicals Company’s Fluon® ETFE Film product was used in the Allianz Arena, a German soccer stadiumChemicals OperationsCreate a safe, secure, comfortable and environmentally friendly world with chemical technology.Chemicals Operations are expanding based on the sectors of chlor-alkali and urethane, and fluorochemicals and specialty chemicals.In the chlor-alkali and urethane sector, the Group offers basic chemical prod-ucts, such as caustic soda and sodium bicarbonate, which are extremely versatile in daily use and in an array of industries. Urethane-based products are indispensable for comfortable living, for example, heat-insulating materi-als for walls, and automobile seats. In the fluorochemicals and specialty chemicals sector, the Group boasts the world’s leading technology and offers products that show exceptionally high-performance in heat resistance, chemi-cal resistance, and weather-resistance, among which fluoropolymer ETFE maintains a leading share of the world market. Other products include fluo-ropolymers and fluoroelastomers that have drawn the attention of the auto-motive and aerospace industries; fluoropolymer films for architectural applica-tions; and fluoropolymers for coatings with excellent weather-resistant prop-erties used in bridges and towers. Further, Chemicals Operations offer new multifunctional materials for the electronics and display sectors as well. In fiscal 2011, the Group’s sales for the chlor-alkali and urethane sector were 160.4 billion yen and sales for the fluorochemicals and specialty chemicals were 97.3 billion yen, resulting in net sales of 248.6 billion yen1 and operating income of 18.1 billion yen for the Chemicals Operations.1 Sales to external customers; different from sales total from each sector.Market share ranking of major products (AGC estimates)Fluoropolymers (ETFE)No. 1 worldwideDescription of BusinessBusinessOverviewChapter 1ChemicalsOperationsElectronicsOperationsGlassOperationsCeramics/OthersAGC Report 2012 33AGC Report 2012 34 Fluorochemicals and specialty chemicals38%Chlor-alkali and urethane62%Sales TrendsSector-Based Sales Share1000200300(Billion yen)2009233.72010260.12011248.6Chemicals Operations sales 248.6billion yen(FY)Fluon® fluoropolymer films used at the UNIQLO Shinsaibashi store Under the vision “Chemistry for a Blue Planet,” The AGC Group’s Chemicals Operations brings safety, reassurance and comfort to customers’ homes; and contributes to environmental conservation.“Asahi Guard™” fluorinated water and oil repellents“Lumiflon™” highly weather-resistant fluoropolymer resin for coatingFluoropolymer “Fluon® ETFE” used in tubes and hosesThe Chemicals Company’s Fluon® ETFE Film product was used in the Allianz Arena, a German soccer stadiumChemicals OperationsCreate a safe, secure, comfortable and environmentally friendly world with chemical technology.Chemicals Operations are expanding based on the sectors of chlor-alkali and urethane, and fluorochemicals and specialty chemicals.In the chlor-alkali and urethane sector, the Group offers basic chemical prod-ucts, such as caustic soda and sodium bicarbonate, which are extremely versatile in daily use and in an array of industries. Urethane-based products are indispensable for comfortable living, for example, heat-insulating materi-als for walls, and automobile seats. In the fluorochemicals and specialty chemicals sector, the Group boasts the world’s leading technology and offers products that show exceptionally high-performance in heat resistance, chemi-cal resistance, and weather-resistance, among which fluoropolymer ETFE maintains a leading share of the world market. Other products include fluo-ropolymers and fluoroelastomers that have drawn the attention of the auto-motive and aerospace industries; fluoropolymer films for architectural applica-tions; and fluoropolymers for coatings with excellent weather-resistant prop-erties used in bridges and towers. Further, Chemicals Operations offer new multifunctional materials for the electronics and display sectors as well. In fiscal 2011, the Group’s sales for the chlor-alkali and urethane sector were 160.4 billion yen and sales for the fluorochemicals and specialty chemicals were 97.3 billion yen, resulting in net sales of 248.6 billion yen1 and operating income of 18.1 billion yen for the Chemicals Operations.1 Sales to external customers; different from sales total from each sector.Market share ranking of major products (AGC estimates)Fluoropolymers (ETFE)No. 1 worldwideDescription of BusinessBusinessOverviewChapter 1ChemicalsOperationsElectronicsOperationsGlassOperationsCeramics/OthersAGC Report 2012 33AGC Report 2012 34 Chapter 1
Business Overview
Chemicals Operations
Activity Highlights
Technology
Global Business
Strengthening of Pharmaceutical and Agrochemical Intermediates and Active
Ingredients Operations through Fluorochemical Technology
Taking advantage of its long-established fluorochemicals technol-
ogy, the AGC Group is dedicating its resources to the supply of
differentiated products in the pharmaceutical and agrochemical
intermediates and active ingredients sector. Tapros ophthalmic
solution 0.0015%, released domestically in Japan in December
2008, is a glaucoma medicine that uses the active pharmaceutical
ingredient “Tafluprost,” which was created through a joint effort
between the AGC Group and Santen Pharmaceutical. A fusion of
the Group’s proprietary fluorochemical and organic synthesis tech-
nologies, this pharmaceutical product shows outstanding charac-
teristics, such as in its effectiveness in lowering intra-ocular pres-
sure, the primary treatment for glaucoma. New medicines using
Tafluprost are contributing to the treatment of glaucoma world-
wide. Starting with Japan, these are now being sold in 37 countries
throughout Europe, Asia and the United States.
With the intent of doubling its production capacity for pharmaceu-
tical and agrochemical intermediates and active ingredients, the
AGC Group is building two new plants at AGC Wakasa Chemicals.
The plant in Wakasa Town, Fukui Prefec-
ture, will be used to produce agrochemi-
cal intermediates and active ingredients
such as insecticide and fungicide, and is
scheduled to begin operation around
November 2012. The active ingredients
for glaucoma treatment will be manu-
factured at the plant in Obama City,
Fukui Prefecture; production is planned
to begin in 2013.
Tafluprost, Pharmaceutical
active ingredient
Environment
Fluorine Ion-Exchange Membrane “Flemion™” to be Used in the Bilateral
Offset Credit System
The “Bilateral Offset Credit System” proposed by the Japanese
government has the advantage of allowing developed and develop-
ing countries to promptly implement greenhouse gas (GHG) emis-
sions reduction initiatives through bilateral agreements, without
going through the United Nations approval process, as was neces-
sary with the conventional emissions trading system. In preparation
for the realization of this new system, the Ministry of Economy, Trade
and Industry is examining projects involving the popularization of
climate change mitigation technology, and the AGC Group’s low-
energy electrolysis1 process has been adopted as one such project.
The purpose of this initiative is to examine the verification proce-
dures and methods of measuring the amount of GHG emissions
reduction using the result of energy usage reduction at two chemi-
cals plants in Mexico, where the AGC Group’s fluorine ion-exchange
membrane “Flemion™” has been introduced to drastically reduce
energy consumption for the electrolysis process, which is a process
used to manufacture caustic soda and other chemicals. Generally the
ion-exchange membrane facilitates an energy reduction of approxi-
mately 40% as compared to the conventional mercury method, and
these efforts are anticipated to result in an annual CO2 emissions
reduction of between 60-80,000 tons.
1 Electrolysis of brine that produces caustic soda and chlorine
Low-carbon technology (low-energy electrolysis
process), products, services, infrastructure, etc.
Used to achieve
Japan’s goals
Japan Mexico
Plant
GHG
emissions in
Mexico
reduced
Electrolysis Process Mechanism
(Ion-Exchange Membrane Method)
[Chlorine Cl2]
[Hydrogen H2]
(+)
Salt
water
Na+
e
d
o
n
A
_
CI
(–)
Caustic
Soda
_
OH
e
d
o
h
t
a
C
“Flemion™”, fluoropolymer
ion-exchange membrane
Amount of GHG emissions reduction
35
AGC Report 2012
Glass
Operations
Electronics
Operations
Chemicals
Operations
Ceramics/
Others
PT Asahimas Chemical
(Cilegon, Banten Province, Indonesia)
Indonesia
30% Expansion of Electrolysis1 Capacity in Indonesia
Caustic soda is an alkali product that is widely used as a basic
caustic soda. The AGC Group will utilize this chlorine in the
industrial chemical, as well as in rayon, soaps and detergents,
production of ethylene dichloride (EDC) and other products in
seasonings, paper and pulp. In the Asian region, demand for
an effort to help respond to expanding demand for chlorine
caustic soda has been expanding year by year against the
derivatives in the Asian regions with a focus on Indonesia.
background of a favorable economy, and such a trend is
1 Brine electrolysis to produce chlorine and caustic soda
expected to continue along with the economic growth of the
region. In order to respond to growing demand for caustic
soda and chlorine derivatives in the Asian market, the AGC
Group is investing approximately 5 billion yen into its
Indonesian local subsidiary, PT Asahimas Chemical to increase
the electrolysis production capacity of the plant by 30%. This
will give AGC Group’ s PT Asahimas Chemical a caustic soda
production capacity of approximately 500,000 tons annually.
The expansion of the electrolysis facility will also result in
increased production of chlorine, which is produced along with
PT Asahimas Chemical
Responsibilities to Society
Earthquake
Prompt Resumption of Lifeline Product Supply Following Great East Japan
On March 11, 2011, the Great East Japan Earthquake struck Japan
and supply restrictions on electricity, crude petroleum and gaso-
and halted the operation of the Chiba and Kashima plants of Asahi
line. However, the Group worked with the related ministries and
Glass. The facilities are crucial domestic production bases for the
agencies and pressed forward with recovery activities, and as a
Group’ s chemicals operations, such as manufacturing products
result, was able to resume supply of these lifeline products early. In
vital to civic lifelines, such as sodium hypochlorite, used to purify
addition to fulfilling its responsibility
municipal water, and medical sodium bicarbonate. In this state of
to supply necessary products as a
emergency, the AGC Group moved in accordance with its estab-
manufacturer, the Group was able to
lished Business Continuity Plan (BCP), and employees at head-
be of assistance in preserving lives
quarters, plants and branch offices stood together and worked
and preventing civic disorder follow-
towards recovery. There were many challenging issues following
ing the disaster.
the disaster, including restricted entry to certain areas of the plants
AGC Report 2012 36
Chapter 1
Business Overview
Chemicals Operations
Activity Highlights
Glass
Operations
Electronics
Operations
Chemicals
Operations
Ceramics/
Others
PT Asahimas Chemical
(Cilegon, Banten Province, Indonesia)
Indonesia
Technology
Global Business
Strengthening of Pharmaceutical and Agrochemical Intermediates and Active
30% Expansion of Electrolysis1 Capacity in Indonesia
Ingredients Operations through Fluorochemical Technology
Taking advantage of its long-established fluorochemicals technol-
throughout Europe, Asia and the United States.
ogy, the AGC Group is dedicating its resources to the supply of
With the intent of doubling its production capacity for pharmaceu-
differentiated products in the pharmaceutical and agrochemical
tical and agrochemical intermediates and active ingredients, the
intermediates and active ingredients sector. Tapros ophthalmic
AGC Group is building two new plants at AGC Wakasa Chemicals.
solution 0.0015%, released domestically in Japan in December
The plant in Wakasa Town, Fukui Prefec-
2008, is a glaucoma medicine that uses the active pharmaceutical
ture, will be used to produce agrochemi-
ingredient “Tafluprost,” which was created through a joint effort
cal intermediates and active ingredients
between the AGC Group and Santen Pharmaceutical. A fusion of
such as insecticide and fungicide, and is
the Group’s proprietary fluorochemical and organic synthesis tech-
scheduled to begin operation around
nologies, this pharmaceutical product shows outstanding charac-
November 2012. The active ingredients
teristics, such as in its effectiveness in lowering intra-ocular pres-
for glaucoma treatment will be manu-
sure, the primary treatment for glaucoma. New medicines using
factured at the plant in Obama City,
Tafluprost are contributing to the treatment of glaucoma world-
Fukui Prefecture; production is planned
wide. Starting with Japan, these are now being sold in 37 countries
to begin in 2013.
Tafluprost, Pharmaceutical
active ingredient
Environment
Offset Credit System
Fluorine Ion-Exchange Membrane “Flemion™” to be Used in the Bilateral
The “Bilateral Offset Credit System” proposed by the Japanese
dures and methods of measuring the amount of GHG emissions
government has the advantage of allowing developed and develop-
reduction using the result of energy usage reduction at two chemi-
ing countries to promptly implement greenhouse gas (GHG) emis-
cals plants in Mexico, where the AGC Group’s fluorine ion-exchange
sions reduction initiatives through bilateral agreements, without
membrane “Flemion™” has been introduced to drastically reduce
going through the United Nations approval process, as was neces-
energy consumption for the electrolysis process, which is a process
sary with the conventional emissions trading system. In preparation
used to manufacture caustic soda and other chemicals. Generally the
for the realization of this new system, the Ministry of Economy, Trade
ion-exchange membrane facilitates an energy reduction of approxi-
and Industry is examining projects involving the popularization of
mately 40% as compared to the conventional mercury method, and
climate change mitigation technology, and the AGC Group’s low-
these efforts are anticipated to result in an annual CO2 emissions
energy electrolysis1 process has been adopted as one such project.
reduction of between 60-80,000 tons.
The purpose of this initiative is to examine the verification proce-
1 Electrolysis of brine that produces caustic soda and chlorine
Low-carbon technology (low-energy electrolysis
process), products, services, infrastructure, etc.
Used to achieve
Japan’s goals
Japan Mexico
Plant
GHG
emissions in
Mexico
reduced
Electrolysis Process Mechanism
(Ion-Exchange Membrane Method)
[Chlorine Cl2]
[Hydrogen H2]
(+)
Salt
water
Na+
e
d
o
n
A
_
CI
(–)
Caustic
Soda
_
OH
e
d
o
h
t
a
C
“Flemion™”, fluoropolymer
ion-exchange membrane
Amount of GHG emissions reduction
35
AGC Report 2012
Caustic soda is an alkali product that is widely used as a basic
industrial chemical, as well as in rayon, soaps and detergents,
seasonings, paper and pulp. In the Asian region, demand for
caustic soda has been expanding year by year against the
background of a favorable economy, and such a trend is
expected to continue along with the economic growth of the
region. In order to respond to growing demand for caustic
soda and chlorine derivatives in the Asian market, the AGC
Group is investing approximately 5 billion yen into its
Indonesian local subsidiary, PT Asahimas Chemical to increase
the electrolysis production capacity of the plant by 30%. This
will give AGC Group’ s PT Asahimas Chemical a caustic soda
production capacity of approximately 500,000 tons annually.
The expansion of the electrolysis facility will also result in
increased production of chlorine, which is produced along with
Responsibilities to Society
caustic soda. The AGC Group will utilize this chlorine in the
production of ethylene dichloride (EDC) and other products in
an effort to help respond to expanding demand for chlorine
derivatives in the Asian regions with a focus on Indonesia.
1 Brine electrolysis to produce chlorine and caustic soda
PT Asahimas Chemical
Prompt Resumption of Lifeline Product Supply Following Great East Japan
Earthquake
On March 11, 2011, the Great East Japan Earthquake struck Japan
and halted the operation of the Chiba and Kashima plants of Asahi
Glass. The facilities are crucial domestic production bases for the
Group’ s chemicals operations, such as manufacturing products
vital to civic lifelines, such as sodium hypochlorite, used to purify
municipal water, and medical sodium bicarbonate. In this state of
emergency, the AGC Group moved in accordance with its estab-
lished Business Continuity Plan (BCP), and employees at head-
quarters, plants and branch offices stood together and worked
towards recovery. There were many challenging issues following
the disaster, including restricted entry to certain areas of the plants
and supply restrictions on electricity, crude petroleum and gaso-
line. However, the Group worked with the related ministries and
agencies and pressed forward with recovery activities, and as a
result, was able to resume supply of these lifeline products early. In
addition to fulfilling its responsibility
to supply necessary products as a
manufacturer, the Group was able to
be of assistance in preserving lives
and preventing civic disorder follow-
ing the disaster.
AGC Report 2012 36
Chapter 1
Business
Overview
The AGC Group and Clean Energy
Ceramics/Other Operations
In addition to its Ceramics Operations, which support high-quality
glass manufacturing, the Group is engaged in logistics,
engineering and other operations.
The AGC Group continues to contribute to efficient energy use and
the creation of clean energy, by integrating advanced technologies
in glass, electronics, chemicals and ceramics.
In order to realize an energy recycling society and create clean energy, the AGC Group has made strides in
developing a range of technologies in each of its businesses, and providing products that create new value. Such
contributions include photovoltaic products like photovoltaic cover glass and glass substrates, and a variety of clean
energy products such as CSP mirrors, cathode materials for lithium-ion batteries and seal materials.
Glass Operations
Fused cast refractory brick for glass
furnace crown from AGC Ceramics
Photovoltaic cover glass
Building integrated photovoltaics
Solite™ Plus
Sunjoule™
CSP Mirrors
This photovoltaic cover glass is designed
These Photovoltaic modules absorb
AGC’s CSP mirrors collect sunlight more
to utilize more light. AGC’s unique coat-
sunlight on both surfaces for power
efficiently. A thin, curved, concave type
ing effectively lowers surface reflection
generation. The modules can be installed
is also available.
and raises light transmittance.
vertically on roads and roof fencing.
Electronics Operations
Chemicals Operations
Ceramics Operations
Description of Business
The refractories used in glass melting furnaces play an important
role in the stable production of high-quality glass. The AGC
Group’ s ceramics business has its roots in the 1916 production
of refractory bricks for glass furnaces. Through the years, the
Group has cultivated expertise in fused cast refractories,
bonded refractories, monolithic refractories and fine ceramics,
and offers engineering services and high-quality products based
on these four material technologies. AGC Ceramics is dedicated
to creating innovation under the banner of two visions: Glass
Ceramics Innovation and Green Ceramics Innovation. In the
glass engineering business, the company offers highly-durable,
highly functional fused cast bricks that extend the life of glass
furnaces and save energy and reduce CO2 during the glass
production process, and proposes a wide range of solutions
based on these high-performance products. In the environmen-
tal energy business, the company strives to create products and
technologies that contribute to environmental conservation,
including ultra-insulating monolithic refractories and bonded
refractories that contribute to saving energy and reducing the
environmental impact of factory furnaces, and fine ceramics
products such as high-temperature fans and sputtering targets
used for TCO substrates for PV modules. In addition to the
ceramics operations, the AGC Group is also engaged in logis-
tics, engineering, and other operations. The fiscal 2011 sales for
those services amounted to 83.9 billion yen, with operating
income of 4 billion yen.
Fused cast bonded refractory
bricks for glass melting furnaces
THERMOTECT™ ultra-insulating
monolithic refractory brick
Photovoltaic electrode binder
Glass frit and paste
Electrode materials for
lithium ion batteries
Sputtering target for
transparent conductive thin films
Glass materials used for insulation, airtight
Cathode Materials for lithium ion batter-
This material is used to create transparent
sealing, and protection, which can be used
ies that are used in mobile phones and
conductive films, which are indispensable
in silver or aluminum electrode binders to
personal notebook computers. Lithium
for surface electrodes of PV cells. The
help improve conductivity.
ion batteries are highly durable for
AGC Group offers high-quality materials
repeated re-charging.
based on its fine ceramics techniques.
Ceramic sputtering targets
Cement rotary kiln
Exhibiting Sunjoule™ Power-Generation Glass at the 42nd Tokyo Motor Show 2011
Sales Trends
(Billion yen)
100
80
60
40
20
0
77.3
83.9
68.9
2009
2010
2011
(FY)
The AGC Group hosted an exhibit called “SMART MOBILITY CITY 2011” at
the 42nd Tokyo Motor Show 2011, held at Tokyo Big Sight from December
3–11, 2011. In an easy-to-understand exhibit with video and onsite demon-
strations, the AGC Group introduced how glass can lead to “smart” lifestyles
that are people-friendly and socially harmonious. The exhibit highlighted the
Sunjoule™ power-generation glass and other functional glass products which
contribute to the creation of clean energy. The AGC booth also showcased a
futuristic car whose body color changes over time and with the seasons and
Dragontrail™, a specialty glass for chemical strengthening which garnered a
lot of attention in a hands-on exhibit.
37
AGC Report 2012
AGC Report 2012 38
Chapter 1
Business
Overview
The AGC Group and Clean Energy
Ceramics/Other Operations
In addition to its Ceramics Operations, which support high-quality
glass manufacturing, the Group is engaged in logistics,
engineering and other operations.
The AGC Group continues to contribute to efficient energy use and
the creation of clean energy, by integrating advanced technologies
in glass, electronics, chemicals and ceramics.
In order to realize an energy recycling society and create clean energy, the AGC Group has made strides in
developing a range of technologies in each of its businesses, and providing products that create new value. Such
contributions include photovoltaic products like photovoltaic cover glass and glass substrates, and a variety of clean
energy products such as CSP mirrors, cathode materials for lithium-ion batteries and seal materials.
Glass Operations
Fused cast refractory brick for glass
furnace crown from AGC Ceramics
Photovoltaic cover glass
Solite™ Plus
This photovoltaic cover glass is designed
to utilize more light. AGC’s unique coat-
ing effectively lowers surface reflection
and raises light transmittance.
Building integrated photovoltaics
Sunjoule™
These Photovoltaic modules absorb
sunlight on both surfaces for power
generation. The modules can be installed
vertically on roads and roof fencing.
CSP Mirrors
AGC’s CSP mirrors collect sunlight more
efficiently. A thin, curved, concave type
is also available.
Electronics Operations
Chemicals Operations
Ceramics Operations
Fused cast bonded refractory
THERMOTECT™ ultra-insulating
bricks for glass melting furnaces
monolithic refractory brick
Photovoltaic electrode binder
Glass frit and paste
Glass materials used for insulation, airtight
sealing, and protection, which can be used
in silver or aluminum electrode binders to
help improve conductivity.
Electrode materials for
lithium ion batteries
Cathode Materials for lithium ion batter-
ies that are used in mobile phones and
personal notebook computers. Lithium
ion batteries are highly durable for
repeated re-charging.
Sputtering target for
transparent conductive thin films
This material is used to create transparent
conductive films, which are indispensable
for surface electrodes of PV cells. The
AGC Group offers high-quality materials
based on its fine ceramics techniques.
furnaces and save energy and reduce CO2 during the glass
Ceramic sputtering targets
Cement rotary kiln
production process, and proposes a wide range of solutions
based on these high-performance products. In the environmen-
Sales Trends
(Billion yen)
100
80
60
40
20
0
77.3
83.9
68.9
2009
2010
2011
(FY)
Exhibiting Sunjoule™ Power-Generation Glass at the 42nd Tokyo Motor Show 2011
The AGC Group hosted an exhibit called “SMART MOBILITY CITY 2011” at
the 42nd Tokyo Motor Show 2011, held at Tokyo Big Sight from December
3–11, 2011. In an easy-to-understand exhibit with video and onsite demon-
strations, the AGC Group introduced how glass can lead to “smart” lifestyles
that are people-friendly and socially harmonious. The exhibit highlighted the
Sunjoule™ power-generation glass and other functional glass products which
contribute to the creation of clean energy. The AGC booth also showcased a
futuristic car whose body color changes over time and with the seasons and
Dragontrail™, a specialty glass for chemical strengthening which garnered a
lot of attention in a hands-on exhibit.
37
AGC Report 2012
AGC Report 2012 38
Description of Business
The refractories used in glass melting furnaces play an important
role in the stable production of high-quality glass. The AGC
Group’ s ceramics business has its roots in the 1916 production
of refractory bricks for glass furnaces. Through the years, the
Group has cultivated expertise in fused cast refractories,
bonded refractories, monolithic refractories and fine ceramics,
and offers engineering services and high-quality products based
on these four material technologies. AGC Ceramics is dedicated
to creating innovation under the banner of two visions: Glass
Ceramics Innovation and Green Ceramics Innovation. In the
glass engineering business, the company offers highly-durable,
highly functional fused cast bricks that extend the life of glass
tal energy business, the company strives to create products and
technologies that contribute to environmental conservation,
including ultra-insulating monolithic refractories and bonded
refractories that contribute to saving energy and reducing the
environmental impact of factory furnaces, and fine ceramics
products such as high-temperature fans and sputtering targets
used for TCO substrates for PV modules. In addition to the
ceramics operations, the AGC Group is also engaged in logis-
tics, engineering, and other operations. The fiscal 2011 sales for
those services amounted to 83.9 billion yen, with operating
income of 4 billion yen.
Material issues for the AGC GroupMaterial issues for stakeholdersIssues for whicha framework isto be developedand a commitmentmade to societyIssues for whichadditionalmeasures aredeemed unnecessaryIssues for whicha framework isto be developedIssues for whichinformation is tocontinue tobe collectedRelated data can be found in the CSR Information Supplement (PDF)www.agc.com/english/csr/book/Related information can be found on the CSR homepageAbout the icons on each page:The AGC Group established the CSR Committee in 2005 as an in-house organization dedicated to promoting CSR. On the CSR Committee, the AGC Group CEO presides as the committee chair, while the board of directors, corporate auditors and the head of each organization deliberate over general policies and issues related to the Group’s CSR activities on a quarterly basis. Moreover, the CSR Promotions Team, which consists of CSR executives from each of the In-house Companies, as well as the human resources, purchases and audit departments, discuss and share responsibility for each policy and issue prior to the CSR Committee meeting.In order to fulfill its corporate mission to “Look beyond to make the world a brighter place” as outlined in the Group Vision , the AGC Group endeavors to both foster trust and meet the expectations of the commu-nity and contribute to the creation of a sustainable society by adopting behaviors based on our shared values (see page 4). Further, the Group utilizes the ISO 26000, an international standard on social responsibility as a guide-line for its global CSR activities in order to more concretely demonstrate values-based conduct and establish the AGC Group Charter of Corporate Behavior.In fiscal 2011, in order to assess the AGC Group’s CSR activi-ties from the perspective of stakeholders and strengthen policies that benefit the community, the Group developed the CSR monitoring framework based on ISO 26000. As part of this development, the Group took the following three steps: (1) creation of a CSR Monitoring Sheet; (2) implemen-tation of communications within the Group; and (3) goal-setting for materiality issues (see figure below).From this point forward, in addition to continuing to monitor critical items made to reflect the changing expec-tations of society, the Group will examine applicability according to business segment and region.Charter of Corporate Behavior (full text)CSR Information Supplement P. 1Responsibilities to Our StakeholdersThe AGC Group’s Vision and CSRCSR Promotion SystemDeveloping the CSR Monitoring Framework Based on ISO 26000CSRRequirements,Expectations/EvaluationHandling andInformationDisclosurebased onRequirements/ExpectationsCreation of the CSR Monitoring SheetCSR Monitoring FrameworkThe CSR Monitoring Sheet is based on the core subjects/issues and related actions and expecta-tions as detailed in ISO 26000. The sheet consists of a table listing some 200 issues relating to actions and expectations required of the AGC Group by its stakeholders; the impact on each stakeholder, the activity status (Group/regional) and the relevant organization are given for each issue.STEP 1Implementation of Communications within the GroupIn addition to holding a seminar on ISO 26000 led by an outside expert, dialogues have been initiated between CSR Office staff and CSR representatives in each organization, lasting a period of two months.The Group seeks to deepen understanding of the content of each issue and, after narrowing the items, place each within one of four quadrants in the matrix of CSR issues (diagram right) for each organization.ISO 26000 workshop led by Mr. Eiichiro Adachi from the Japan Research InstituteSTEP 2Matrix of CSR IssuesTarget-Setting for Materiality IssuesTargets and the relevant organizations are assigned for each issue in the matrix of CSR issues and progress toward the targets is monitored on an annual basis by the CSR Committee. The targets and results for issues located in the most critical quadrant of the matrix are reported to stakeholders in the AGC Report.STEP 3AGC GroupStakeholdersEmployeesBusinesspartnersSocietyShareholdersand investorsCustomersCSR Monitoring SheetTargets and resultsfor issues locatedin this quadrantare disclosed publiclyChapter239AGC Report 2012 Material issues for the AGC GroupMaterial issues for stakeholdersIssues for whicha framework isto be developedand a commitmentmade to societyIssues for whichadditionalmeasures aredeemed unnecessaryIssues for whicha framework isto be developedIssues for whichinformation is tocontinue tobe collectedRelated data can be found in the CSR Information Supplement (PDF)www.agc.com/english/csr/book/Related information can be found on the CSR WebsiteAbout the icons on each page:The AGC Group established the CSR Committee in 2005 as an in-house organization dedicated to promoting CSR. On the CSR Committee, the AGC Group CEO presides as the committee chair, while the board of directors, corporate auditors and the head of each organization deliberate over general policies and issues related to the Group’s CSR activities on a quarterly basis. Moreover, the CSR Promotions Team, which consists of CSR executives from each of the In-house Companies, as well as the human resources, purchases and audit departments, discuss and share responsibility for each policy and issue prior to the CSR Committee meeting.In order to fulfill its corporate mission to “Look beyond to make the world a brighter place” as outlined in the Group Vision , the AGC Group endeavors to both foster trust and meet the expectations of the commu-nity and contribute to the creation of a sustainable society by adopting behaviors based on our shared values (see page 4). Further, the Group utilizes the ISO 26000, an international standard on social responsibility as a guide-line for its global CSR activities in order to more concretely demonstrate values-based conduct and establish the AGC Group Charter of Corporate Behavior.In fiscal 2011, in order to assess the AGC Group’s CSR activi-ties from the perspective of stakeholders and strengthen policies that benefit the community, the Group developed the CSR monitoring framework based on ISO 26000. As part of this development, the Group took the following three steps: (1) creation of a CSR Monitoring Sheet; (2) implemen-tation of communications within the Group; and (3) goal-setting for materiality issues (see figure below).From this point forward, in addition to continuing to monitor critical items made to reflect the changing expec-tations of society, the Group will examine applicability according to business segment and region.Charter of Corporate Behavior (full text)CSR Information Supplement P. 1Responsibilities to Our StakeholdersThe AGC Group’s Vision and CSRCSR Promotion SystemDeveloping the CSR Monitoring Framework Based on ISO 26000CSRRequirements,Expectations/EvaluationHandling andInformationDisclosurebased onRequirements/ExpectationsCreation of the CSR Monitoring SheetCSR Monitoring FrameworkThe CSR Monitoring Sheet is based on the core subjects/issues and related actions and expecta-tions as detailed in ISO 26000. The sheet consists of a table listing some 200 issues relating to actions and expectations required of the AGC Group by its stakeholders; the impact on each stakeholder, the activity status (Group/regional) and the relevant organization are given for each issue.STEP 1Implementation of Communications within the GroupIn addition to holding a seminar on ISO 26000 led by an outside expert, dialogues have been initiated between CSR Office staff and CSR representatives in each organization, lasting a period of two months.The Group seeks to deepen understanding of the content of each issue and, after narrowing the items, place each within one of four quadrants in the matrix of CSR issues (diagram right) for each organization.ISO 26000 workshop led by Mr. Eiichiro Adachi from the Japan Research InstituteSTEP 2Matrix of CSR IssuesTarget-Setting for Materiality IssuesTargets and the relevant organizations are assigned for each issue in the matrix of CSR issues and progress toward the targets is monitored on an annual basis by the CSR Committee. The targets and results for issues located in the most critical quadrant of the matrix are reported to stakeholders in the AGC Report.STEP 3AGC GroupStakeholdersEmployeesBusinesspartnersSocietyShareholdersand investorsCustomersCSR Monitoring SheetTargets and resultsfor issues locatedin this quadrantare disclosed publiclyChapter240AGC Report 2012 ISO 26000 ItemsThe AGC Group Targets and ResultsCore subjectsIssuesRelated actions and expectations (major issues)Refer-enceFiscal 2011 targets Fiscal 2011 resultsSelf-evaluationFiscal 2012 targetsOrganizational GovernanceDecision-making processes and structures•Nurtureanenvironmentinwhichtheprincipleofsocialresponsi-bility(accountability,transparency)ispracticedP. 44Continue to ensure effective communications in and out-side the Group•Continuetogainsociety’strustbyconductingtimelyandappropriatedisclosure•Continuouslyinteractwithstakeholdersthroughdialoguesandprovidingreportsthatreflectsociety’sexpectationsandtheprogressmadebytheGroup•Promptlydisclosedinformationonissuesofparticularinteresttothepublic,includingtheimpactoftheGreatEastJapanEarthquakeandmajorfloodinginThailandontheGroup’soperations•AddressedissuesinrelationtoISO26000andreflectedthedemandsofsocietyinthe2011CSRReport•AsahiGlasswasreinstatedintheDowJonesSustainabilityWorldIndex1andgivenaBronzeClassinthesustainableratingofSustainabilityAssetManagement2AContinue to ensure effective communications in and outside the Group•Continuetogainsociety’strustbyconductingtimelyandappropriatedisclosure•PublishacombinedannualandCSRreportthatmoreclearlypresentstheAGCGroup’sapproachtoprogressivelyintegratingbusinessoperationsandcorporatesocialresponsibility•EnhancecommunicationsbothinandoutsidetheGrouptoestablishastrongerbasisforCSRactivities•Nurtureanenvironmentinwhichtheprincipleofsocialresponsi-bility(ethicalbehavior,respectfortheruleoflaw)ispracticedP. 46Continue to promote compliance•ReviewtheGroupCodeofConductandpreparetherevi-sion•FurtherexpandthescopeofemployeessubmittingPer-sonalCertificationsontheCodeofConduct•CompletedareviewoftheGroupCodeofConduct•ObtainedPersonalCertificationsontheCodeofConductfromabout38,000employ-ees,representing81%ofallGroupemployeesAContinue to promote compliance•RevisetheGroupCodeofConduct•FurtherexpandthescopeofGroupemployeesrequestedtosubmitPersonalCertificationsontheCodeofConduct•ConductongoingcompliancetrainingandonlinetrainingprogramsforallGroupemployees•PeriodicallyreviewandevaluatethegovernanceprocessP. 44Implementing effective audits and promoting the PDCA cycle•Conductauditsofcountermeasuresagainstleakageofcon-fidentialinformationandcompliancewithantitrustlaws,withanemphasisontheGroup’sglobaluniformity•Commenceauditstargetingspecificdownsiderisks3•Conductedinternalauditsat49sitesintheGroup,focusingontheGroup’sglobaluni-formityandcoveringtheestablishmentofaframeworkforcomplyingwithantitrustlawsandprotectingconfidentialinformation•CarriedoutauditstoexaminetheimplementationofEnterpriseRiskManagement4bydivisionsinchargeofhandlingrespectivedownsiderisks3AImplementing effective audits and promoting the PDCA cycle•ContinueconductingauditsoftheframeworkintheGroupforobserv-ingantitrustlawsandmeasuresforprotectingconfidentialinformation•Conductauditstargetingthecompletionandapplicationofabusinesscontinuityplan(BCP)acrossGroupcompaniesinAsiaincludingJapanLabor PracticesConditions of work and social protection•Complywithanyobligationconcerningtheprovisionofprotec-tionforworkersinthecountryofoperationP. 47Create a work environment where employees can work with satisfaction and pride•Giveeachin-houseorganizationfeedbackonthethirdEmployeeSatisfaction(ES)survey•Prepareaself-inspectionlistforhumanrightsandlaborpracticesandconductasurveytocheckcompliancewithintheGroup•ContinueimplementingtheAGCGroupAwardsystem•ProvidedtheresultsofthethirdEmployeeSatisfaction(ES)surveytoemployees,formu-latedandimplementedmeasurestoimproveESateachin-houseorganization,andannouncedthemeasurestotheentireGroupinamessagefromtheCEO•Distributedtheself-inspectionlistforhumanrightsandlaborpracticesinDecember2010,andcheckedthestatusofcomplianceat157Groupcompanies;necessarycorrectivemeasureswerepromptlyimplemented•IncreasedthenumberofAGCGroupCEOAwardsawardeesbyapproximately20%,increasingtheawardeesparticularlyfromGroupcompaniesinAsiaandEuropeanditscontentswithexpandedmeasurestofacilitateglobalcooperationintheawardsystemACreate a work environment where employees can work with satisfac-tion and pride•PromotetheGroup-widedevelopmentofmeasurestoimproveemployeesatisfaction,andcreateopportunitiestoregularlyreviewrelatedactivitiesundertakenateachin-houseorganization•Employasecondvoluntaryself-inspectionofhumanrightsandlaborpracticesintheGroup•Continuetoimplementtheawardsystemwhilemakingimprove-mentsasameanstoawardjointlyimplementedbestpracticesandeffortstocreateaworkenvironmentthatrecognizesandappraisesachievementsHealth and safety at work•Develop,implementandmaintainpolicyonoccupationalhealthandsafety•Understandandapplyprinciplesofhealthandsafetymanage-ment(elimination,substitution,engineeringcontrols,administrativecontrols,workproceduresandpersonalprotectiveequipment)•AnalyzeandcontrolthehealthandsafetyrisksinorganizationalactivitiesPP. 50– 51 Foster the Group’s safety management activities•Improvetheeffectivenessoftheoccupationalhealthandsafetymanagementsystem(OHSMS)•Enhanceeducationonhealthandsafety,includingsafetypromotionactivities•Expanddisasterpreventionactivitiesfocusingonunsafehumanbehaviors•Obtainedthird-partycertificationoftheOHSMSat83plantsasofDecember31,2011•Enhancededucationonhealthandsafetybyimplementingongoingsafetypromotionactivitiesandexpandingsafetypatroltrainingintostratifiededucationalseminars,Haz-ardSimulationTrainingwasexpandedtoGroupcompanies•Producedabookletonpreventingdisasterscausedbyhumanerrortodrawattentiontounsafebehaviorsatwork,andcommencedtrainingateveryorganizationB5Foster the Group’s safety management activities•IncreasetheeffectivenessoftheOHSMS•Continuetoenhanceeducationonhealthandsafety,includingsafetypromotionactivities•Reduceaccidentsduetounsafeactionsaswellasaccidentscausedbyelderlyemployees•RaisethelevelofhealthmanagementReduce risks by improving health and safety audits•FromMarch2011,internalauditsofenvironment,safetyandsecuritywereimplementedwiththeInternalAuditOfficeinanefforttoimproveefficiencyReduce risks by improving health and safety audits•ConductauditsparticularlyatplantswithhighrisksassociatedwithhealthandsafetywhileaimingtodevelopamoreglobalauditingsystemPromote and ensure machinery safety•Fostermeasurestoexpandtheimplementationofthenewmachinerysafetystandard•ExpandtheSafetyAssessorprogramintomoreGroupcom-panies•PriorSafetyAssessmentSystem,safetyinspectionsinadvanceofinstallingproductionfacilities,beingimplementedatmostplantsinJapan•ConductedmachinerysafetytrainingforsupervisorsfromallrelevantorganizationsinJapan,andexpandedthetrainingtoincludeGroupcompaniesinAsiaotherthanJapan•Increasedthenumberofemployeesqualifiedassafetyassessorsby80andqualifiedassafetybasicassessorsby239inAsiaincludingJapanPromote and ensure machinery safety•Improvetheeffectivenessofsafetyinspectionstakeninadvanceofinstallingproductionfacilities•ExpandtheimplementationoftrainingrelatedtomachinerysafetyHuman resource development and training in the workplace•Provideallworkersatallstagesoftheirworkexperiencewithac-cesstoskillsdevelopment,trainingandapprenticeships•Provideallworkersatallstagesoftheirworkexperiencewithac-cesstoopportunitiesforcareeradvancementPP. 48– 49 Develop human resources that can drive the Group for-ward•Continueimplementingmeasuresforthedevelopmentofhumanresourcesforglobalmanagement6•Expandtheemploymentofhumanresourcesforglobalman-agement•Continuedconductingnext-generationleadertraining,andincludedtrainingsessionsinChinaforthefirsttime•Contemplatedtheorganizationandhumanresourcesaspirationsfor2020,andestab-lishedprioritytaskstowardthisendforthemediumterm;employedtheSkillMap(seepage49)inemploymentplansfortechnicalpersonnelADevelop human resources that can drive the Group forward•Improvethecontentofnext-generationleadertraining•Continueemployingglobalmanagementstaff6Enhance employee education and training programs•ExpandthescopeoftheAGCGroupimprovementactivi-ties•BeginningwithJapan,expandedtheAGCGroupimprovementactivitiestocertainareasofAsia,EuropeandNorthAmericaEnhance employee education and training programs•Developnewtrainingprogramsthatmakeuseofonlinetraining•ContinueexpandingthescopeoftheAGCGroupimprovementactivitiesThe EnvironmentPrevention of pollution•Identifytheimpactofitsdecisionsandactivitiesontheenvironment•Measure,recordandreportonitssignificantsourcesofpollutionandreductionofpollution,waterconsumption,wastegenerationandenergyconsumption•Prepareanenvironmentalaccidentpreventionprogramandanemergencyplaninvolvingworkers,authorities,localcommunitiesandotherrelevantstakeholders•ImplementmeasuresaimedatpreventingpollutionandwasteandproperlymanageunavoidablepollutionandwastePP. 52– 56 Further implement the integrated environmental manage-ment system (Integrated EMS) on a global basis•IncreasethenumberofsitesintheGroupincorporatedintheintegratedEMS•Furtherenhanceenvironmental-relatedcommunicationsglobally•NewlyaddedoneGroupcompanytotheintegratedEMS,bringingthetotalnumberofparticipatingplantsupto96intheGroupB8Promoting risk reduction and preventive measuresPromote Zero-landfill (waste) in the Group7•Achievedarecyclingrateof96.9%astheGroupaveragePromote Zero-landfill (waste)7 in the GroupClimate changemitigation andadaptation•IdentifythesourcesofdirectandindirectGHGemissionsanddefinethescopeofitsresponsibility•Measure,recordandreportonitssignificantGHGemissions,preferablyusingmethodsdefinedininternationallyagreedstandards•ImplementmeasurestoreducethedirectandindirectGHGemissionswithinitssphereofinfluence•RealizeenergysavingsbypurchasingofenergyefficientgoodsanddevelopmentofenergyefficientproductsPP. 52– 54 Promote environmental activities according to the highest standards in the materials industry by establishing environ-mental targets for the Group•ExamineandsettheGroup’senvironmentaltargets•ContinueexaminingthelifecycleCO2•Environmentalproductsaccountedfor16%oftotalsales•ImplementedabilateraloffsetcreditmechanismfeasibilitystudywithMexico(seepage35)APromote environmental activities according to the highest standards in the materials industry•Promotethedevelopmentofenvironmentalproducts•AchieveanAGCEnvironmentalIndicatorlevelof1.3orlessforgreen-housegases•Facilitateenergyconservationinmanufacturingprocesses,etc.Fair Operating PracticesAnti-corruption•Identifytherisksofcorruptionandimplementandmaintainpoli-ciesandpracticesthatcountercorruptionIncluded in the “Continue to promote compliance” sectionFair competition•Conductitsactivitiesinamannerconsistentwithcompetitionlawsandregulations,andcooperatewiththeappropriateauthorities•Establishprocedurestopreventengaginginanti-competitivebehavior•TrainemployeesontheimportanceofcompetitionlegislationandfaircompetitionP. 57Improve training and auditing related to compliance with antitrust laws•Providedtrainingoncompliancewithantitrustlawstoabout6,400employeesthroughonlinetrainingand740employeesthroughclassroomtraining•Createdguidelinestoensureadherencetoantitrustlawsandconductedrelatedauditsat52Groupcompaniesandin-houseorganizationsA9Improve training and auditing related to compliance with antitrust laws1 Oneoftheleadingglobalsociallyresponsibleinvesting(SRI)indexes2 ASwissSRIvalueassessmentcompany3 DownsideriskisdefinedastheriskofdamagetotheAGCGroup’sreputationandtrustworthiness4 EnterpriseRiskManagementiscarriedoutthroughouttheGroup5 ReasonforBevaluation:AtotaloftwofataloccupationalaccidentstookplacewithintheAGCGroup.6 Humanresourceswhoseachievementatagloballevelisexpected.Targets and ResultsIn line with the results of CSR monitoring, “Targets and Results” are disclosed with regard to items located in the most critical quadrant within the matrix of CSR issues.Chapter 2Responsibilities to Our Stakeholders41AGC Report 2012 ISO 26000 ItemsThe AGC Group Targets and ResultsCore subjectsIssuesRelated actions and expectations (major issues)Refer-enceFiscal 2011 targets Fiscal 2011 resultsSelf-evaluationFiscal 2012 targetsOrganizational GovernanceDecision-making processes and structures•Nurtureanenvironmentinwhichtheprincipleofsocialresponsi-bility(accountability,transparency)ispracticedP. 44Continue to ensure effective communications in and out-side the Group•Continuetogainsociety’strustbyconductingtimelyandappropriatedisclosure•Continuouslyinteractwithstakeholdersthroughdialoguesandprovidingreportsthatreflectsociety’sexpectationsandtheprogressmadebytheGroup•Promptlydisclosedinformationonissuesofparticularinteresttothepublic,includingtheimpactoftheGreatEastJapanEarthquakeandmajorfloodinginThailandontheGroup’soperations•AddressedissuesinrelationtoISO26000andreflectedthedemandsofsocietyinthe2011CSRReport•AsahiGlasswasreinstatedintheDowJonesSustainabilityWorldIndex1andgivenaBronzeClassinthesustainableratingofSustainabilityAssetManagement2AContinue to ensure effective communications in and outside the Group•Continuetogainsociety’strustbyconductingtimelyandappropriatedisclosure•PublishacombinedannualandCSRreportthatmoreclearlypresentstheAGCGroup’sapproachtoprogressivelyintegratingbusinessoperationsandcorporatesocialresponsibility•EnhancecommunicationsbothinandoutsidetheGrouptoestablishastrongerbasisforCSRactivities•Nurtureanenvironmentinwhichtheprincipleofsocialresponsi-bility(ethicalbehavior,respectfortheruleoflaw)ispracticedP. 46Continue to promote compliance•ReviewtheGroupCodeofConductandpreparetherevi-sion•FurtherexpandthescopeofemployeessubmittingPer-sonalCertificationsontheCodeofConduct•CompletedareviewoftheGroupCodeofConduct•ObtainedPersonalCertificationsontheCodeofConductfromabout38,000employ-ees,representing81%ofallGroupemployeesAContinue to promote compliance•RevisetheGroupCodeofConduct•FurtherexpandthescopeofGroupemployeesrequestedtosubmitPersonalCertificationsontheCodeofConduct•ConductongoingcompliancetrainingandonlinetrainingprogramsforallGroupemployees•PeriodicallyreviewandevaluatethegovernanceprocessP. 44Implementing effective audits and promoting the PDCA cycle•Conductauditsofcountermeasuresagainstleakageofcon-fidentialinformationandcompliancewithantitrustlaws,withanemphasisontheGroup’sglobaluniformity•Commenceauditstargetingspecificdownsiderisks3•Conductedinternalauditsat49sitesintheGroup,focusingontheGroup’sglobaluni-formityandcoveringtheestablishmentofaframeworkforcomplyingwithantitrustlawsandprotectingconfidentialinformation•CarriedoutauditstoexaminetheimplementationofEnterpriseRiskManagement4bydivisionsinchargeofhandlingrespectivedownsiderisks3AImplementing effective audits and promoting the PDCA cycle•ContinueconductingauditsoftheframeworkintheGroupforobserv-ingantitrustlawsandmeasuresforprotectingconfidentialinformation•Conductauditstargetingthecompletionandapplicationofabusinesscontinuityplan(BCP)acrossGroupcompaniesinAsiaincludingJapanLabor PracticesConditions of work and social protection•Complywithanyobligationconcerningtheprovisionofprotec-tionforworkersinthecountryofoperationP. 47Create a work environment where employees can work with satisfaction and pride•Giveeachin-houseorganizationfeedbackonthethirdEmployeeSatisfaction(ES)survey•Prepareaself-inspectionlistforhumanrightsandlaborpracticesandconductasurveytocheckcompliancewithintheGroup•ContinueimplementingtheAGCGroupAwardsystem•ProvidedtheresultsofthethirdEmployeeSatisfaction(ES)surveytoemployees,formu-latedandimplementedmeasurestoimproveESateachin-houseorganization,andannouncedthemeasurestotheentireGroupinamessagefromtheCEO•Distributedtheself-inspectionlistforhumanrightsandlaborpracticesinDecember2010,andcheckedthestatusofcomplianceat157Groupcompanies;necessarycorrectivemeasureswerepromptlyimplemented•IncreasedthenumberofAGCGroupCEOAwardsawardeesbyapproximately20%,increasingtheawardeesparticularlyfromGroupcompaniesinAsiaandEuropeanditscontentswithexpandedmeasurestofacilitateglobalcooperationintheawardsystemACreate a work environment where employees can work with satisfac-tion and pride•PromotetheGroup-widedevelopmentofmeasurestoimproveemployeesatisfaction,andcreateopportunitiestoregularlyreviewrelatedactivitiesundertakenateachin-houseorganization•Employasecondvoluntaryself-inspectionofhumanrightsandlaborpracticesintheGroup•Continuetoimplementtheawardsystemwhilemakingimprove-mentsasameanstoawardjointlyimplementedbestpracticesandeffortstocreateaworkenvironmentthatrecognizesandappraisesachievementsHealth and safety at work•Develop,implementandmaintainpolicyonoccupationalhealthandsafety•Understandandapplyprinciplesofhealthandsafetymanage-ment(elimination,substitution,engineeringcontrols,administrativecontrols,workproceduresandpersonalprotectiveequipment)•AnalyzeandcontrolthehealthandsafetyrisksinorganizationalactivitiesPP. 50– 51 Foster the Group’s safety management activities•Improvetheeffectivenessoftheoccupationalhealthandsafetymanagementsystem(OHSMS)•Enhanceeducationonhealthandsafety,includingsafetypromotionactivities•Expanddisasterpreventionactivitiesfocusingonunsafehumanbehaviors•Obtainedthird-partycertificationoftheOHSMSat83plantsasofDecember31,2011•Enhancededucationonhealthandsafetybyimplementingongoingsafetypromotionactivitiesandexpandingsafetypatroltrainingintostratifiededucationalseminars,Haz-ardSimulationTrainingwasexpandedtoGroupcompanies•Producedabookletonpreventingdisasterscausedbyhumanerrortodrawattentiontounsafebehaviorsatwork,andcommencedtrainingateveryorganizationB5Foster the Group’s safety management activities•IncreasetheeffectivenessoftheOHSMS•Continuetoenhanceeducationonhealthandsafety,includingsafetypromotionactivities•Reduceaccidentsduetounsafeactionsaswellasaccidentscausedbyelderlyemployees•RaisethelevelofhealthmanagementReduce risks by improving health and safety audits•FromMarch2011,internalauditsofenvironment,safetyandsecuritywereimplementedwiththeInternalAuditOfficeinanefforttoimproveefficiencyReduce risks by improving health and safety audits•ConductauditsparticularlyatplantswithhighrisksassociatedwithhealthandsafetywhileaimingtodevelopamoreglobalauditingsystemPromote and ensure machinery safety•Fostermeasurestoexpandtheimplementationofthenewmachinerysafetystandard•ExpandtheSafetyAssessorprogramintomoreGroupcom-panies•PriorSafetyAssessmentSystem,safetyinspectionsinadvanceofinstallingproductionfacilities,beingimplementedatmostplantsinJapan•ConductedmachinerysafetytrainingforsupervisorsfromallrelevantorganizationsinJapan,andexpandedthetrainingtoincludeGroupcompaniesinAsiaotherthanJapan•Increasedthenumberofemployeesqualifiedassafetyassessorsby80andqualifiedassafetybasicassessorsby239inAsiaincludingJapanPromote and ensure machinery safety•Improvetheeffectivenessofsafetyinspectionstakeninadvanceofinstallingproductionfacilities•ExpandtheimplementationoftrainingrelatedtomachinerysafetyHuman resource development and training in the workplace•Provideallworkersatallstagesoftheirworkexperiencewithac-cesstoskillsdevelopment,trainingandapprenticeships•Provideallworkersatallstagesoftheirworkexperiencewithac-cesstoopportunitiesforcareeradvancementPP. 48– 49 Develop human resources that can drive the Group for-ward•Continueimplementingmeasuresforthedevelopmentofhumanresourcesforglobalmanagement6•Expandtheemploymentofhumanresourcesforglobalman-agement•Continuedconductingnext-generationleadertraining,andincludedtrainingsessionsinChinaforthefirsttime•Contemplatedtheorganizationandhumanresourcesaspirationsfor2020,andestab-lishedprioritytaskstowardthisendforthemediumterm;employedtheSkillMap(seepage49)inemploymentplansfortechnicalpersonnelADevelop human resources that can drive the Group forward•Improvethecontentofnext-generationleadertraining•Continueemployingglobalmanagementstaff6Enhance employee education and training programs•ExpandthescopeoftheAGCGroupimprovementactivi-ties•BeginningwithJapan,expandedtheAGCGroupimprovementactivitiestocertainareasofAsia,EuropeandNorthAmericaEnhance employee education and training programs•Developnewtrainingprogramsthatmakeuseofonlinetraining•ContinueexpandingthescopeoftheAGCGroupimprovementactivitiesThe EnvironmentPrevention of pollution•Identifytheimpactofitsdecisionsandactivitiesontheenvironment•Measure,recordandreportonitssignificantsourcesofpollutionandreductionofpollution,waterconsumption,wastegenerationandenergyconsumption•Prepareanenvironmentalaccidentpreventionprogramandanemergencyplaninvolvingworkers,authorities,localcommunitiesandotherrelevantstakeholders•ImplementmeasuresaimedatpreventingpollutionandwasteandproperlymanageunavoidablepollutionandwastePP. 52– 56 Further implement the integrated environmental manage-ment system (Integrated EMS) on a global basis•IncreasethenumberofsitesintheGroupincorporatedintheintegratedEMS•Furtherenhanceenvironmental-relatedcommunicationsglobally•NewlyaddedoneGroupcompanytotheintegratedEMS,bringingthetotalnumberofparticipatingplantsupto96intheGroupB8Promoting risk reduction and preventive measuresPromote Zero-landfill (waste) in the Group7•Achievedarecyclingrateof96.9%astheGroupaveragePromote Zero-landfill (waste)7 in the GroupClimate changemitigation andadaptation•IdentifythesourcesofdirectandindirectGHGemissionsanddefinethescopeofitsresponsibility•Measure,recordandreportonitssignificantGHGemissions,preferablyusingmethodsdefinedininternationallyagreedstandards•ImplementmeasurestoreducethedirectandindirectGHGemissionswithinitssphereofinfluence•RealizeenergysavingsbypurchasingofenergyefficientgoodsanddevelopmentofenergyefficientproductsPP. 52– 54 Promote environmental activities according to the highest standards in the materials industry by establishing environ-mental targets for the Group•ExamineandsettheGroup’senvironmentaltargets•ContinueexaminingthelifecycleCO2•Environmentalproductsaccountedfor16%oftotalsales•ImplementedabilateraloffsetcreditmechanismfeasibilitystudywithMexico(seepage35)APromote environmental activities according to the highest standards in the materials industry•Promotethedevelopmentofenvironmentalproducts•AchieveanAGCEnvironmentalIndicatorlevelof1.3orlessforgreen-housegases•Facilitateenergyconservationinmanufacturingprocesses,etc.Fair Operating PracticesAnti-corruption•Identifytherisksofcorruptionandimplementandmaintainpoli-ciesandpracticesthatcountercorruptionIncluded in the “Continue to promote compliance” sectionFair competition•Conductitsactivitiesinamannerconsistentwithcompetitionlawsandregulations,andcooperatewiththeappropriateauthorities•Establishprocedurestopreventengaginginanti-competitivebehavior•TrainemployeesontheimportanceofcompetitionlegislationandfaircompetitionP. 57Improve training and auditing related to compliance with antitrust laws•Providedtrainingoncompliancewithantitrustlawstoabout6,400employeesthroughonlinetrainingand740employeesthroughclassroomtraining•Createdguidelinestoensureadherencetoantitrustlawsandconductedrelatedauditsat52Groupcompaniesandin-houseorganizationsA9Improve training and auditing related to compliance with antitrust laws7 Zero-landfill(waste)isdefinedasrecyclingof99%ormoreofwaste.8 Thereasonsfortheself-evaluationof“B”arethattheAGCGroupEnvironmentalForumwascancelledowingtotheGreatEastJapanEarthquake,andZero-landfill(waste)forwastematterhavenotyetbeenachieved.9 FordetailsofthesettlementcasewiththeEuropeanCommissioninvestigatingtheGroup’sviolationofcompetitionlawsintheglassbulbsforcathode-raytubes(CRT)market,seepage57.Criteria for Self-evaluationA:Satisfactorylevel,inwhichtheintendedtargethasbeenachievedB:Almostsatisfactorylevel,inwhichapartoftheintendedtargethasnotyetbeenachievedC: Unsatisfactorylevel,inwhichtheintendedtargethasnotbeenachievedTargetsandresultsasdisclosedinthe2011CSRReport(notcoveredonthispage)www.agc.com/english/csr/agcgroupcsr/target.html42AGC Report 2012 Chapter 2
Responsibilities to Our Stakeholders
Organizational Governance
The management of the AGC Group strives to achieve efficient and fully transparent
operations as it works to undertake proper and effective decision-making, management
execution and supervision.
Corporate Governance
Approach to Corporate Governance
As stated in its basic policy concerning corporate governance,
the AGC Group clearly separates the functions of oversight
and execution of management, aiming to strengthen the man-
agement oversight function while ensuring quick decision-
making in management execution. Under this policy, the Group
has been implementing measures to improve both the man-
agement system and internal control system in order to ensure
highly transparent and efficient management.
Corporate Governance Structure
The Board of Directors of Asahi Glass comprises seven direc-
tors, including three outside directors1, and is tasked with ap-
proving the AGC Group’s basic policy and monitoring the
execution of its management.
The management execution function is the responsibil-
ity of executive officers below the President & CEO. As an
advisory committee to the President & CEO, Asahi Glass es-
tablishes the Management Committees and discusses busi-
ness management monitoring and decisions regarding man-
agement execution. A system of In-house Companies (quasi-
subsidiaries within the Group) has been introduced and a
global consolidated management system is adopted with re-
gard to business execution. Much of the responsibility and
authority for business execution has been delegated to the
In-house Companies and the SBU.
For the selection and evaluation of directors and execu-
tive officers and for their compensation, Asahi Glass has es-
tablished respectively the Nominating Committee and the
Compensation Committee as non-statutory advisory commit-
tees to ensure the objectivity and transparency of any deci-
sions made. More than half the members of each committee
are outside directors. In order to ensure impartiality in the
selection of independent directors, the Group has determined
its own selection standards over and above the regulations of
Japanese corporate law.
As to the compensation of directors (excluding outside
directors) and executive officers, Asahi Glass has introduced
compensation-type stock options allowing them to share ben-
efits with shareholders, and has also introduced performance-
linked bonuses for executive officers (including directors who
serve also as executive officers). Independent directors, on the
other hand, are paid only monthly compensation.
Asahi Glass has also adopted a corporate auditor sys-
tem. As of the end of March 2012, the Board of Corporate
Auditors comprised four corporate auditors, including three
independent auditors.
1 As of March 29, 2012
Attendance rate of each director in Board of Director meetings
CSR Information Supplement P. 2
Overview of Corporate Governance Structure (as of March 29, 2012)
General Meeting of Shareholders
t
h
g
i
s
r
e
v
O
t
n
e
m
e
g
a
n
a
M
n
o
i
t
u
c
e
x
E
s
s
e
n
i
s
u
B
Corporate Auditors: 4 Auditors
(Including 3 Outside
Corporate Auditors)
Board of Directors: 7 Directors
(Including 3 Outside Directors)
Nominating Committee:
4 Directors
(Including 3 Outside Directors)
Independent Accountants
n
o
i
t
a
r
e
p
o
o
C
l
a
u
t
u
M
Executive Officers:
Executive Officers:
Executive Officers:
Executive Officers:
29 Officers
Internal Audit
Office
Group
Corporate
President & CEO
Senior Executive Vice President &
Overall business management
Executive Vice President &
Overall business management
Senior Executive Officer &
Overall business management
Management Committee
CSR Committee
Compensation Committee:
4 Directors
(Including 3 Outside Directors)
Compliance Committee
Fair Trade Committee
Information Management Council
Security Export Control
Headquarters
In-house Companies/Strategic Business Unit (SBU)2
3 In-house Companies: Glass Electronics Chemicals
1 SBU: AGC Ceramics
e
t
a
r
o
p
r
o
C
n
o
i
t
c
n
u
F
p
u
o
r
G
s
n
o
i
t
a
r
e
p
O
n
o
i
t
c
n
u
F
s
s
e
n
i
s
u
B
2 An In-house Company is defined as a business unit with net sales exceeding 200 billion yen which conducts its business globally. At present,
there are three In-house Companies: the Glass Company, the Electronics Company and the Chemicals Company. Business units smaller than this
are defined as Strategic Business Units (SBUs).
43 AGC Report 2012
In response to the establishment of the Companies Act, Asahi Glass voted on its corporate policy over internal control at the Board of Directors meeting held in May 2006. The aim was to review and ensure the appropriateness of its business opera-tion systems, including the compliance system.After introducing the Internal Control Report System in compliance with the Financial Instruments and Exchange Act, the AGC Group Internal Control over Financial Reporting Im-plementation Regulations was established. Based on these regulations, the Group establishes, operates and evaluates internal controls for financial reporting. Internal control was evaluated as being effective in fiscal 2010 and 2011, and an external auditor confirmed the appro-priateness of the system in its evaluation.In fiscal 2012, an e-learning program for employees is planned with the aim of strengthening internal control functions.In order to maintain the independence of internal auditing divisions and implement effective and efficient auditing, the AGC Group has set up a framework that assigns the internal auditing global leader under the supervision of the Group CEO to oversee the regional leaders of Asia including Japan, Europe and North America. Under this system, each regional auditing division monitors their respective organization and works to make improvements. The global leader in charge of these divi-sions promptly reports on results to the Group CEO, and pe-riodically submits reports to the Board of Corporate Auditors and the Board of Directors. Since fiscal 2010, in addition to the oversight of audits at each organization, fiscal year global proj-ects designed to improve the level of management for the Group are also prepared. In fiscal 2011, the AGC Group conducted audits under the fiscal year project of complying with anti-monopoly laws and managing confidential information, and began pre-audits of the status of internal controls at new companies before their operations commenced.The AGC Group is a member of the World Business Council for Sustainable Development (WBC-SD) along with about 200 other companies around the world.The AGC Group actively discloses corporate information to stakeholders in a timely and appropriate manner. To manage the prompt disclosure of information, the Timely Information Disclosure Committee holds regular meetings to deliberate and decide on the need to disclose information related to matters under discussion by the Management Committee and Board of Directors, based on disclosure rules of the stock exchanges. For information of high interest to stakeholders, the public relations departments of Group companies in the Asia including Japan, Europe and North America regions co-operate to ensure such information is announced appropri-ately and promptly. The AGC Group provides various opportunities to en-gage in dialogue with shareholders and investors as a means to incorporate their opinions into management plans and en-sure that they are fully informed of the Group’s management strategies and financial performance. The AGC Group makes efforts to improve the conve-nience of information it provides to shareholders regarding the general meetings of shareholders, such as ensuring that notices of convocation are sent out as early as possible and posted on the Group’s Web site. Shareholders are also able to exercise their voting rights via the Internet. As part of investor relations activities, management holds presentations on its strategies and financial results, meetings to discuss quarterly and yearly financial results, and tours of facilities for analysts and institutional investors. Mem-bers of management also met for interviews on about 220 occasions in fiscal 2011. Furthermore, small meetings are held for individual investors, and a publication for shareholders, AGC Review, is issued twice per year. Through these means, the AGC Group aims to provide clearly presented information not only covering management strategies and financial results but also business activities and products. Furthermore, the AGC Group engages in interactive com-munications with stakeholders at all of its business sites, holding various kinds of events and dialogues with invited experts.Additionally, Asahi Glass is a member of the Council for Better Corporate Citizenship (CBCC) and Group companies are also actively involved in initiatives in their respective coun-tries and regions. For instance, AGC Flat Glass (Thailand) Pub-lic participated in the CSR-DIW Initiative promoted by Thai-land’s Department of Industrial Works (DIW) to gain CSR certification based on ISO 26000 standards.Implementation of Internal AuditsInternal ControlParticipation in External InitiativesCommunication with StakeholdersInternal Audit System StructureCSR Information Supplement P. 2For more information on stakeholder dialogues:www.agc.com/english/csr/communication/shd/Human Rights and Labor PracticesThe EnvironmentFair Operating Practices and Consumer IssuesCommunity Involvement and DevelopmentOrganizational GovernanceCore Subjects of ISO 2600044AGC Report 2012 The AGC Group is united in its efforts regarding risk manage-ment. Founded on the corporate policy over internal control determined by the Board of Directors, the AGC Group defines its important risk factors, assesses their management status and reports the results to the Management Committee and the Board of Directors for periodic discussion. Divisions with jurisdiction over specific risk formulate action plans for risk management and develop a Plan, Do, Check and Act (PDCA) cycle in order to continuously improve and reform the level of risk management.The AGC Group began formulating its business continuity plan (BCP) in fiscal 2008 to prepare for a large-scale accident or disaster. Additionally, in March 2011, the Group issued the AGC Group Business Continuity Plan (BCP) Development Guideline as guidelines for use by divisions and sites when formulating BCPs for each type of risk. BCPs are reliably implemented and assessed based on the business continuity management pro-cess (BCM) for continuously maintaining and improving BCPs.In March 2011, the Group established the AGC Group Basic Principle to Cope with Natural Disasters to prepare for large-scale natural disasters that might take place in the regions in which the Group operates, and as a means to promote inte-grated and comprehensive countermeasures at sites in regions around the world where disaster risks are particularly high.In response to the Great East Japan Earthquake, oc-curred in March 2011, the Group revised these basic principles in December and established Rules for the AGC Group Task-force Headquarters (Natural Disasters Version). Furthermore, simulated drills for carrying out a business continuity plan were jointly conducted by busi-ness sites in Japan based on multiple scenarios, including damage to head office and other sites caused by major earthquakes occurring in the country’s Tokai, Tonankai and Nankai regions.In September 2011, the Electronics Company carried out drills simulating a switch of headquarters to the Kansai region. The drills assumed a scenario of an earthquake directly striking areas around Tokyo with a seismic intensity of level 6 and paralyzing the func-tions of the Group’s headquarters. The purpose of the drills was to practice setting up an alternative headquarters in Kansai region at the request of the In-house Company President due to the in-ability to use the headquarters building, or also in the event that communications from headquarters had broken down for a certain period as a result of the earthquake.Headquarters, plants in the Kansai region and manufactur-ing plants in and outside of Japan participated in the training. Under the hypothetical scenarios, it was confirmed that infra-structure and systems to be employed according to the BCP could operate, including a backup server located in the Kansai region that backs up data from the server at headquarters, the external Internet reporting system that maintains security, the emergency communication confirmation system, priority-use mobile phones and satellite communications. In addition to these initial drills, recovery activity training was conducted to examine how substitute production could be achieved through coopera-tion between manufacturing plants and sales divisions both in and outside Japan, based on the scenario of damage to manufactur-ing plants in the areas around Tokyo due to a disaster.Business Continuity Management (BCM) StructureMeasures for Natural DisastersApproach to Risk ManagementRisk ManagementExamples of risks managed by the AGC Group as a whole include those related to the following:• Procurement of resources• Product liability• Occupational accidents• Global environmental issues• Intellectual property rights• Compliance• Natural disasters such as earthquakes• Pandemic influenza• Information securityThe simulated drills jointly conducted in October 2011Preparing for a Major Earthquake in Areas around Tokyo with Training for a Switch of HeadquartersElectronics CompanyEach of the Group’s initiatives related to risk management and business continuity planswww.agc.com/english/csr/integrity/riskmng_2.htmlChapter 2Responsibilities to Our StakeholdersOrganizational Governance45AGC Report 2012 To promote compliance policies in three world regions, the AGC Group holds a Global Compliance Meeting twice per year, with participation by managers in charge of compliance committees in each respective region. At the meetings, participants decide on medium-term compliance plans, monitor the progress of mea-sures undertaken in each region and share information concerning compliance. The information and decisions from these meetings are then shared at meetings of the regional compliance commit-tees to facilitate the implementation of such measures. The AGC Group Code of Conduct was established in June 2008 to ensure that all members of the AGC Group share the same values. The code comprises global requirements of busi-ness conduct for all employees in the Group to follow, as well as regional supplements that take into account the differing laws and business customs of respective countries and regions and include items to supplement the global requirements.Revisions to the Code of Conduct are planned in fiscal 2012 based on considerations of new risks that arise from changes in social conditions and revisions to laws in countries where the Group operates, as well as on the shared needs of the Group.The AGC Group has established three compliance committees below the Global Compliance Leader in the three regions of Asia including Japan, Europe and North America. Each compli-ance committee plans, prepares and implements compliance programs and then monitors its region's compliance efforts. Further, the committees hold a global compliance meeting twice per year to draw up policies, measures and other matters for the Group as a whole, the results of which are reported to the Board of Directors. In addition, the AGC Group has estab-lished a framework for promptly reporting information on serious violations of compliance to management through a system designed to monitor reports of compliance issues.The AGC Group has introduced a system in which its employ-ees periodically submit a personal certification to follow the AGC Group Code of Conduct. In this way, employees are given regular opportunities to renew their awareness of com-pliance and take a fresh look at business affairs and the work-place. The Group is aiming to expand the system to cover every employee.In fiscal 2011, 38,000 employees submitted personal certifications, which is equivalent to 81% of all Group employ-ees.The AGC Group has established compliance help lines1 for the Group as a whole and for each individual company to serve as a consultation service on compliance-related issues. To en-courage employees to use the service, the Group protects the anonymity of callers and strictly forbids any act of retaliation against anyone who makes a report in good faith. When users offer their real names, efforts are made to facilitate effective two-way communication and provide feedback on the status and results of handling reported problems.Holding Global Compliance Meetings Attended by Compliance Managers from Each RegionAGC GroupSubmission of Personal Certification on the Code of ConductGlobal Compliance SystemEstablishing Help Lines GloballyThe AGC Group Code of ConductThe Global Compliance MeetingCompliance1 National and regional help lines have been set up in Europe, North America, China, Japan, South Korea, and Taiwan.Compliance training resultsCSR Information Supplement P. 3Code of Conduct (Items for global requirements)CSR Information Supplement P. 3Global Compliance System CSR Information Supplement P. 3Number of help line consultationsCSR Information Supplement P. 3Human Rights and Labor PracticesThe EnvironmentFair Operating Practices and Consumer IssuesCommunity Involvement and DevelopmentOrganizational GovernanceCore Subjects of ISO 2600046AGC Report 2012 To continuously evolve as a truly global enterprise, the AGC Group has formulated the 7 Key Principles for People to guide its various initiatives and activities aimed at realizing progres-sive human resources management.As specified in the Respect for People principles of the AGC Group Charter of Corporate Behavior, the AGC Group strives to respect human rights while forbidding discrimination, forced labor, child labor, or any infringement on human rights. To determine the level of compliance with the Charter at each of its Group companies, in 2010 the AGC Group created a survey form for Group-wide distribution. Based on results from 157 companies that conducted voluntary self-inspections, neces-sary corrective measures were promptly implemented.If problems related to human rights or labor issues occur, they are jointly addressed by the human resources department and the workplaces involved. Meanwhile, issues that are brought to attention via the Group’s help lines are handled by those in charge of compliance.The AGC Group implements Employee Satisfaction (ES) im-provement activities that allow employees to explore ways to solve issues in collaboration with management, including the Group’s executives, applying the concepts of effective com-munication and employee participation. These activities incor-porate ES approaches and initiatives in everyday management with the aim to evaluate and treat employees appropriately and provide greater opportunities for their personal growth and success. In one specific initiative, drawing on the results of its ES survey, the Group organizes small-group meetings at each workplace and formulates and implements action plans designed to improve ES through communication. The Group has conducted the surveys since 2005, and carried out a third survey in November 2010 in 18 languages involving about 40,000 employees.The AGC Group has set up a system for offering various awards with the goal to create a positive corporate culture that recog-nizes the contributions and efforts of its members. Awards cer-emonies are held in the three regions of Asia including Japan, Europe, and North America, and information on the awarded activities are shared in in-house magazines and the in-house homepage. As a result of efforts to promote the awards system throughout the Group, awards presented to European and Asian Group companies increased and the total number raised by about 20% in fiscal 2011 compared to the previous fiscal year.In May 2011, AGC Flat Glass Czech A.S. (AFCZ) newly acquired SA 8000, a global social accountability standard for decent work-ing conditions. Certification was performed for all of AFCZ: five manufacturing plants and a company service center with nearly 1,000 employees. SA 8000 certification indicates that AFCZ gives appropriate attention to worker health and safety and en-sures suitable work-life balance and conditions for employee development. By acquiring SA 8000, the company declares its commitment to fight human rights violations, child labor and forced labor.There were a number of tough steps leading up to our SA 8000 certification. First there was staff training, including an internal auditor, then the final adaptation of documents, including modi-fications of contractual relationships with suppli-ers. Although we voluntarily adhere to principles of good management, certification according to SA 8000 may represent a competitive advan-tage in the eyes of the society. In the future, we’re considering extending the certification to other Group companies in Central Europe.Surveys and Other Initiatives for Improving Employee Satisfaction (ES)Fundamental Approach7 Key Principles for PeopleRespecting Human Rights and Implementing Progressive Labor PracticesAGC Flat Glass Czech Acquires SA 8000 CertificationAGC Flat Glass Czech A.S.“”AFCZ Believes it is a Competitive Advantage as a Company to Show Improvements in the Working EnvironmentLibor SehnalHR Manager, AGC Flat Glass Czech A.S.Establishment of the AGC Group Awards System7 Key Principles for People (full text) CSR Information Supplement P. 4Selection of labor-related data CSR Information Supplement P. 6Data related to ES survey CSR Information Supplement P. 5Number of AGC Group awards CSR Information Supplement P. 5Human Rights and Labor PracticesThe AGC Group is working to create a workplace environment that is safe and rewarding, while achieving continuous growth with mutual respect among employees.Chapter 2Responsibilities to Our Stakeholders47AGC Report 2012 In line with the Group’s efforts to localize business operations at its companies, the Electronics Company conducts training in Japan for the period of two months for key personnel from Group companies around Asia, with the aim to cultivate local staff for future leadership roles. In fiscal 2011, seven trainees from four Group companies in South Korea and China participated in such training, through which they learned about the manage-ment philosophy, methods for improving productivity and other subjects. In the training sessions I recently partici-pated in, I realized that I did not know much about the world. The training gave me good opportunities to study the AGC Group’s corporate culture, as well as Japa-nese culture, proper management methods for every plant and the role that I should pursue in my work in the future. By drawing on what I learned and capitalizing on what South Korea has to offer, I want to help make us the world’s number one display-related business. Based on its management outlook and business development strategies, in February 2011 the AGC Group began drawing a big picture of its organization and human resources in 2020 with the aim to draw on its diversity—the source of the Group’s competitiveness over the long term. As a part of these efforts, the AGC Group estimated the number of employees needed in each segment and country to implement its strategies aimed at 2020, in consideration of the total number of managers and employees working in the Group at present. Based on these results, the Group deter-mined priority tasks over the medium to long term: secure personnel for global management, secure key personnel in China, and cultivate local management staff in Southeast Asia. Going forward, the Group plans to carry out an array of initia-tives designed to complete these tasks. It is essential for managers at the helm of a global enterprise to have leadership qualities that are derived from values gen-erated through diversity. Therefore, to cultivate managers who can drive the Group forward, the AGC Group is grooming employees from a diversity of countries and regions regardless of nationality or gender as future leaders through the training system outlined in the chart at right. Since fiscal 2011, the AGC Group has been stepping up efforts to localize business operations at its Group companies in every region, inviting employees from around the world to Japan for necessary training and education. For instance, engineers from Group companies in Indonesia participated in onsite training in Japan at the Chemicals Company, a program that will expand to Group companies in Thailand and the United States in the future.Global programsAGC InstituteGlobal Leadership Sessions (GLS)Started in 2004 and targeted at general managersDynamic Leadership Sessions (DLS)Started in 2004 and targeted at middle and senior managersRegional programsAGC UniversityCountry programsAGC Management CollegeParticipants will deepen their understanding of the Group vision and values and improve their management knowledge and leadership through direct communication with top management.AGC Management College ChinaStarted from 2006AGC Management College JapanStarted from 2007AGC Management College ThailandStarted from 2009Targeted at young, middle-class managersParticipants, who are expected to be-comecore managers, will acquire man-agement knowledge and leadership mindsets.AGC University AsiaStarted from 2003AGC University EuropeStarted from 2008AGC University AmericasStarted from 2008Targeted at potential futurebusiness leadersParticipants, who are expected to become the business lead-ers of the next generation, will acquire global leadership skills through discussions with vari-ous members.Conducting Training in Japan for Key Personnel from Main Group Companies in AsiaElectronics CompanyMaking the Most of DiversityDrawing the Big Picture of Organization and Human Resources in 2020”Lee Kyung HyukExecutive Officer Manager, Asahi Glass Fine Techno Korea Grooming Global Leaders to Manage Diverse Human ResourcesThe AGC Group's Leader Training ProgramsEmployee composition and recruitment data CSR Information Supplement PP. 6-7“I Want to Apply What I Learned in Japan to Make Us the World’s Number One Display-related CompanyOrganizational GovernanceHuman Rights and Labor PracticesThe EnvironmentFair Operating Practices and Consumer IssuesCommunity Involvement and DevelopmentCore Subjects of ISO 2600048AGC Report 2012 Chapter 2
Responsibilities to Our Stakeholders
Human Rights and Labor Practices
Employee Education System
AGC Glass Europe
Developing the Employee Education and Training
System
The AGC Group’s commitment to the idea that Our People are
Our Strength, as found in its management policy, shows that
it is taking steps to develop an education system to help its
employees grow. It has put into place a training system to meet
the needs of each In-house Company, in addition to providing
technology- and skill-specific stratified training that enables
each employee to learn the technologies and skills required
by his or her position. The Group has also devised Group-wide
activities, such as the AGC Group improvement activities, as
well as an awards program.
Employee education and training data
CSR Information Supplement P. 7
Promoting AGC Group Improvement Activities
Promoted through all departments, the AGC Group improve-
ment activities are daily improvement activities and large-scale
innovative improvement activities to achieve the overall goals
of the organization.
To foster the activities efficiently and effectively across
the entire Group, scientific methods are used, such as indus-
trial engineering (IE)-based methods, in addition to the adop-
tion of training to foster improvement experts and other lead-
ers, throughout the entire organization. In fiscal 2011, beginning
in Japan, the Group expanded such activities throughout Asia
and into parts of Europe and North America.
The InnoWiz Program Aims to Turn Each and
Every Member of Staff at AGEU into a
Potential Innovator
In 2010, AGC Glass Europe (AGEU) launched the InnoWiz
Program as part of the AGC Group’s improvement activi-
ties. This program collects innovative ideas from employ-
ees throughout the company. After collection, ideas are
submitted to the InnoWiz website, where employees can
track the progress of their ideas. The InnoLink, a program
coordinator at each site, ensures that the ideas are evalu-
ated and, if appropriate, implemented. Through participa-
tive innovation, the objective of the program is to put in
place a dynamic process to ensure implementation of a
maximum number of ideas. As of the end of 2011, 8,000
people currently have access to the program and the website
holds 4,000 ideas, 700 of which are being implemented.
Winners of the Award for Excellence in the Innowiz Program
In Focus Applying the Skill Map to Advance Human Resources Management
The AGC Group began applying Skill Map from fiscal 2010
with the aim to strengthen its competitiveness and further
enhance employees’ capabilities by facilitating exchanges
between professional personnel that possess highly special-
ized knowledge, experience and skills. As of December 31,
2011, about 5,500 employees from various regions have been
registered according to 26 technical categories and 14 sales
and administrative categories of specialized fields in the Skill
Map database, which is shared in the Group.
By utilizing the Skill Map system, the Group has been
able to assemble effective teams for projects that extend
across divisions and organizations, and to systematically plan
the security of human resources in the future. By bringing to-
gether employees registered under every category of special-
ization from other in-house organizations or countries, the
system has helped in the completion of operational tasks while
improving the individual skills of all employees involved. For
example, research personnel in the AGC Group have shared
ideas globally on the intranet in relation to their respective
specialties. The Group also holds in-house conferences and
workshops specific to each category of specialization under
the system.
5,500 employees registered
Skill E
Skill D
Skill C
Skill C
Skill B
Skill A
Group A
Group B Group C Group D Group E
Effective assembly
of project teams
Employment and hiring
plans to secure future
human resources
(recruitment and training)
Exchange of ideas
between employees
across divisions
and countries
49 AGC Report 2012
As Safety Director at AGC Glass Europe (AGEU), my first step has been to expand the managerial mindset from a focus on efficient practices to “no production without safety.” Based on this commitment at all levels, our safety activity concentrates not only on countermeasures after accidents, but we also aim for preventive action and sharing best practices throughout the organization. In particular we are push-ing forward with a rolling Safety The AGC Group has formulated the AGC Group Basic Occu-pational Health & Safety Policy and promotes activities to re-duce the number of industrial and occupational accidents by assessing potential risks at on-site production facilities based on the occupational health and safety policy of “No produc-tion should be operated without assurance of safety.” Also, the Group is committed to enhancing the effectiveness of its activities by combining its daily health and safety activities1 with occupational health and safety management systems (OHSMS).The AGC Group is pushing ahead with health and safety ac-tivities by creating an occupational health and safety manage-ment system (OHSMS) in each In-house Company/SBU, and the CSR Committee regularly discusses relevant policies and measures, and its progress.Also, the Group is urging each of its manufacturing plants to obtain certification from an external OHSMS certifica-tion institution, and, in addition, is taking steps to improve the management level of health and safety through internal audits conducted by the Internal Audit Office and each In-house Company/SBU.Furthermore, the Group holds a Global Occupational Health and Safety Symposium on a regular basis with the participation of health and safety supervisors from various countries and regions, thereby disseminating best practices and deploying horizontal development at each manufacturing plant. In fiscal 2011, the symposium was suspended due to the Great East Japan Earthquake, but will be held in China in fiscal 2012.The AGC Group is taking steps to improve its risk assessment with an initiative to reduce the risk of occupational accidents.The AGC Group (Japan) trained managers and super-visors, and, from fiscal 2009 onward, implemented training for employees who conduct risk assessment at manufactur-ing plants. Further, under the banner of strengthening safety activities, the Group has sought to implement inten-sive education for risk assessment after selecting Core Safety Facilitators from among those in manufacturing and facility divisions at each plant. By the end of fiscal 2011, 102 employees were participating in the training, and, for the medium-term, the Core Safety Facilitators were placed in strategic points at manufacturing plants, where they were ex-pected to link safety and human resources training with the improvement of safety management by undertaking shop floor risk assessment.Also, the AGC Group (Asia) continues to make improve-ments in risk assessment with educational programs tailored for each manufacturing plant, with six additional regional im-plementations, including in China and Thailand in fiscal 2011.Improvement Plan comprising Lock-Out-Tag-Out1 procedures and a new IT tool for safety reporting. In addition, to better or-ganize safety in AGEU, we are running a 360° assessment on safety management in a mid-term plan by the new safety organiza-tion. We plan to reduce accidents with lost time by 50% per year, with an aim to achieve zero severe accidents in 2016.“”1 The system using tagged locks to prevent injury to workers due to a machine being ac-cidentally switched on during maintenance and other work.1 Health and safety activities such as the 5S (seiri [neatness], seiton [orderliness], seiketsu [cleanliness], seiso [cleanness] and shitsuke [discipline]), hazard protection, near-miss management (hiyari-hatto) and safety patrols which are promoted traditionally.AGEU Aims to Achieve Zero Severe Accidents through Enhanced Awareness of Safety Management and Implementation of Preventative MeasuresJan van LoonSafety Director CSR office AGC Glass Europe Occupational Health & SafetyReducing the Risk of Occupational AccidentsBasic Idea of Occupational Health & SafetyGlobal Health and Safety Management SystemA sign indicating a Lock-Out locationBasic Occupational Health & Safety Policy (full text) CSR Information Supplement P. 8Occupational health and safety management system and Number of plants obtaining third-party certification for OHSMSCSR Information Supplement P. 8Organizational GovernanceHuman Rights and Labor PracticesThe EnvironmentFair Operating Practices and Consumer IssuesCommunity Involvement and DevelopmentCore Subjects of ISO 2600050AGC Report 2012 In order to realize a safe production environment, having safe manufacturing machines is essential. To that end, the AGC Group is taking steps to update the safety of its existing fa-cilities through ongoing risk assessment, while introducing safe manufacturing machinery (machinery safety).The AGC Group (Europe) has introduced safe manufac-turing facilities that have been assessed at the time of installa-tion and design, based on EU directives and in accordance with international safety standards such as ISO 12100. Starting in 2005, the AGC Group (Asia including Japan) has encouraged employees to qualify as Safety Assessors1 to design and introduce facilities based on an understanding of international safety standards. By the end of fiscal 2011, a total of 360 employees had acquired Safety Sub-Assessor qualifica-tions, while a total of 417 had obtained Safety Basic Assessor qualifications.Moreover, beginning in April, 2010, when introducing new facilities, it has become mandatory in Japan to assess facilities at the time of design and production, and plans to make such risk assessment mandatory throughout the other Asian regions will begin in fiscal 2013.In Asia, the AGC Group is implementing safety education through stratified education programs designed to raise safety awareness among newly appointed managers and safety managers, as well as working to revitalize training re-lated to daily health and safety activities such as near-miss management.In fiscal 2011, the Group started Safety Patrol Training, which aims to develop observation of risk factors onsite at production facilities. Also, the Group launched an occupa-tional accident prevention initiative focused on unsafe behav-ior, and created a text book on human error prevention slated for a fiscal 2012 global release, which classifies unsafe behav-ior and introduces preventive methods by category.The AGC Group has collected data since fiscal 2007 about occupational accidents at all locations throughout the Group.The collected data shows trends of occupational acci-dents according to region; there appears to be no change of trends in Asia including Japan, while in Europe, due to ad-vanced machinery safety, accidents involving workers getting caught in machinery are few, but accidents involving over-turned vehicles and during forklift operation continue to occur. The Group is committed to reducing the number of occupa-tional accidents by analyzing the results of its data collection and by promoting safety management initiatives throughout the entire Group.In fiscal 2011, the AGC Group experienced two fatal occupational accidents (one victim in Asia; one in Europe). The Group is committed to the goal of achieving zero serious ac-cidents in the medium-to long-term, accelerating the two ini-tiatives—eliminating serious occupational accidents, and improving safety awareness in each individual employee.0201030200(Number of accidents)(FY)FatalitiesAccidents requiring leaveFatalitiesAccidents requiring leaveFatalitiesAccidents requiring leaveFatalitiesAccidents requiring leave2007142008142009132010152011170201030(Number of accidents)(FY)2007262008162009122010920117015020010050250(Number of accidents)(FY)20072402008179200913520101352011138030201040(Number of accidents)(FY)200734200812200911201016201112222111121EuropeJapanAsia other than JapanNorth AmericaOccupational Accidents1 Under this qualification system for skills on machinery safety, which was established by some organizations including the Society of Safety Technology and Application, Japan, there are four different levels of qualifications: Safety Lead Assessors, Safety Assessors, Safety Sub-Assessors and Safety Basic Assessors.Number of Occupational AccidentsMachinery Safety to Introduce Safe Manufacturing Machines Improving the Level of Safety AwarenessSafety Patrol TrainingNoteThe assessment criteria for accidents requiring leave differ among Asia including Japan, Europe and North America, which disables the simple comparison of the numbers of occupational accidents among each region.Human Rights and Labor PracticesChapter 2Responsibilities to Our Stakeholders51AGC Report 2012 In 2011, the PT Asahimas Flat Glass, Tbk’s Sidoarjo Plant was awarded a Green level PROPER rating by the government of In-donesia in acknowledgement of the plant’s excellent environment management programs. 1,002 companies currently participate in the PROPER pro-gram and of these, five received Gold ratings, the highest level, while 106 received Green ratings, the second-highest level. In Sidoarjo regency, only two sites received the Green rating.The Sidoarjo Plant was evaluated in four key areas: whether they had complied with rules and regulations over the previous five years; whether they were implementing pro-grams regarding energy saving, water conservation, and the handling of waste; whether they had biodiver-sity programs; and their CSR and community develop-ment activities.Recognizing that its operations have considerable impact on the environment, the AGC Group has positioned environmental protection as a top management priority. Accordingly, it has established the AGC Group Basic Environmental Policy to guide business activities in ways that contributes to the envi-ronment.The AGC Group has been building on and maintaining its in-tegrated environmental management system (Integrated EMS) since 2003. The objectives of the system are as follows: 1) The Group aims to carry out environmental activities on an operational-wide basis rather than independently at each plant by integrating EMS in each of In-house Companies.2) The Group aims to determine the effects of its entire op-erations on the environment in advance, extending from product design and assembly line organization through to manufacturing and transportation, to enable it to reduce the environmental impact of its products over the products’ entire lifecycle. Accordingly, it includes the head office, sales departments and R&D divisions in addition to manu-facturing plants in the Integrated EMS framework.Under this system, each organization works to attain the goals and plans set in the Integrated EMS, and progress is evaluated by management through the integrated EMS review. Furthermore, each plant is encouraged to have exter-nal inspections based on international standards by the same certification organization, as a way to determine the level of environmental management activities in each country and region where the Group operates. Management makes use of the results of these evaluations and inspections when drafting policies and plans for the following fiscal year to ensure that environmental management activities continuously improve. With a view toward enhancing its integrated manage-ment system, the AGC Group employs the same certification organization to inspect its quality assurance and occupational health and safety management system in addition to the en-vironmental system.AGC Flat Glass Philip-pines (AGPH) received the Don Emilio Abello Energy Efficiency Award from the Department of Energy of the Philippines in December 2011. AGPH was given an outstanding prize, mark-ing the second time it had received the award, having previously won in 2008.Named after the founder of the country’s environmental conservation movement, the Don Emilio Abello Energy Efficien-cy Award is given to companies that demonstrate progress in improving energy efficiency and implementing effective mea-sures aimed at mitigating climate change in line with national targets. AGPH received this award as the result of a number of energy-saving and conservation measures, including the optimi-zation of air compressor operations, changes in lighting equip-ment and rationalization of air conditioning.Environmental Performance Rating (PROPER) Program Green Award Received from the Government of IndonesiaEnvironmental Awards Received by the Glass CompanyEnvironmental ManagementThe AGC Group Basic Environmental PolicyBasic Environmental Policy (full text), Material Balance, Environmental AccountingCSR Information Supplement PP. 10-12Integrated Environmental Management SystemAGPH Receives Government Environmental Award in the PhilippinesAMG director receives the certificate from the Minister of the EnvironmentAward ceremonyPromotion structure of Integrated EMS and ISO 14001 certification status CSR Information Supplement P. 10Chapter 2Responsibilities to Our StakeholdersThe EnvironmentThe AGC Group regards the environment a top management priority and is committed to reducing environmental impact.52AGC Report 2012 The AGC Group formulated the AGC Environmental Indicator in 2006 to independently assess the environmental impact of its manufacturing activities (details shown below). By using this indicator, the Group can calculate how much the environment is affected in relation to improvements in its economic perfor-mance while making further improvements. The Indicator is calculated based on the ratio of the AGC Group’s sales to GDP (economic contribution) and the ratio of the emissions of sub-stances of concern (SOC) from the Group’s manufacturing activities to the total (environmental impact ratio).Recognizing that it belongs to an energy-intensive industry, the AGC Group is promoting energy saving in areas such as within its production processes. In this regard, it has set a target value of 1.3 as measured by the AGC Environmental Indicator for greenhouse gas emissions. To meet this target, the Group is making use of fuel conversion and total oxygen combustion (see page 63) to improve production processes, installed cogeneration equipment and implemented energy conservation assessment. The value of the AGC Environmental Indicator for greenhouse gas emissions in fiscal 2011 was 1.5.The AGC Group is manufacturing and selling products that emit greenhouse gases besides CO2, fluorinated gases such as HFCs and SF6. Because the greenhouse gas coefficient of these fluo-rocarbons can range between several hundred to about 10,000 times that of CO2, they can be regarded as serious contributors to climate change. In this context, the Group is actively working to reduce its emissions of fluorocarbons generated from its manufacturing processes, and has continued to implement initiatives to recovering, breaking down and recycling fluori-nated gases for its customers since fiscal 1997. Furthermore, Asahi Glass reported that the volume of fluorinated gas emissions in fiscal 2011 was reduced by ap-proximately 99% compared to the Kyoto Protocol benchmark year (1995). The AGC Group is working to reduce greenhouse gas emis-sions in its non-manufacturing operations such as administra-tion and sales divisions. For instance, AGC Glass Europe (AGEU) is promoting energy savings through its Going Green Campaign for all employees, including those working in of-fices. In another example, Asahi Glass moved its head office in August 2011 to a building where all electricity is generated by raw green power1. To reduce emissions of greenhouse gases in its trans-portation operations, each region where the AGC Group oper-ates actively carries out a modal shift to transport, such as rail and ship. In addition, beginning in fiscal 2012, Asahi Glass plans to calculate CO2 emissions according to the Greenhouse Gas Protocol’s scope 3 standard for indirect emissions from such activities as employee business trips and commuting, transportation and supply chain operations. Global (Japan’s) GDPSales ofAGC Group (Asahi Glass)AGC Environmental IndicatorSOC emissionsin the world (Japan)SOC emissionsby AGC Group (Asahi Glass)EconomiccontributionEnvironmentalimpact ratioReducing Greenhouse Gas Emissions in Offices, Transportation and Other Non-manufacturing Operations1 Green power is generated entirely by renewable energy and deliv-ered directly to the consumer from the provider, allowing users to not simply consider green energy, but to directly experience their use of electricity.How to Calculate the AGC Environmental IndicatorReducing Greenhouse Gases Besides CO2The AGC Environmental Indicator to Determine Environmental ImpactAGC Environmental Indicator Data CSR Information Supplement P. 12Assessing Environmental ImpactReduction in Greenhouse Gas EmissionsCutting Down Emissions of Greenhouse Gas in Manufacturing OperationsRange of initiatives for saving energy in non-manufacturing operationswww.agc.com/english/csr/env/act/gas_3.htmlEmission of greenhouse gases other than CO2 CSR Information Supplement P. 13Per unit of energy consumption in transportation CSR Information Supplement P. 13Various energy-saving efforts in manufacturing operationswww.agc.com/english/csr/env/act/gas_2.htmlThe EnvironmentChapter 2Responsibilities to Our Stakeholders53AGC Report 2012 In October 2007, AGC Flat Glass (Suzhou) (AFS) established a water conservation team in response to government request and the plant’s own developing needs. The goal of the team was to obtain certification as a water-saving company from the local government and to lead the company’s water consumption and conservation activities. When AFS started their water-saving activities, water in-take was about 1,600 m3/day and wastewater discharge was about 900 m3/day. Through these activities, the aim was to re-duce water intake to less than 1,000 m3/day and bring waste-water under 570 m3/day. The plant performed a water system balance test, installed water meters for all water lines and in-stalled and modified equipment for wastewater recycling and its reuse. As a result, the company achieved its water consump-The AGC Group is proactively working to promote the tech-nological development and production of photovoltaic mod-ule related materials, Low-E double glazing glass and other environmental products that can contribute to reducing the CO2 emissions of society. By visualizing the results of these efforts, the Group is also making progress in calculating CO2 emissions over product lifecycles. AGC Glass Europe (AGEU), for example, has determined the CO2 emissions generated when manufacturing glass prod-ucts and the CO2 emissions that can be reduced by using these products.In order to use its water resources more effectively, the AGC Group is promoting the recycling of cleaning and coolant wa-ter used in its manufacturing processes. Also, by setting envi-ronmental indicators, such as COD, that are specific to the characteristics of each site, the Group is working toward the prevention of water pollution.In fiscal 2012, there are plans to tabulate water intake from all regions and drainage data in more detail than is con-ventionally used.tion and discharge targets and received the desired government certification.AFS continues to further reduce water use while implement-ing wastewater recycling, aiming to bring water intake from 1,000 m3/day to 950 m3/day.0150100502002002011201010296353812306443714514720099265343312520071936499381502008133556635145(PJ)(FY)Group companies in North AmericaGroup companies in JapanAsahi GlassGroup companies in EuropeGroup companies in Asia other than Japan09,0006,0003,00012,000200(1,000 tons-CO2)(FY)201120102,0505634,2209,22020094842,2703,1108,02020079892,3104,9506182,82011,70020087702,6803,3002202224542,1602,4506504,5109,8602212,0201,9402,7809,980Group companies in North AmericaGroup companies in JapanAsahi GlassGroup companies in EuropeGroup companies in Asia other than JapanPromoting Water Reuse and RecyclingAGC Flat Glass (Suzhou)Effective Use of Water ResourcesDetermining CO2 Emissions over the Product LifecycleEffective Use of Water Resources and the Prevention of Water PollutionTotal Energy ConsumptionGreenhouse Gas EmissionsTotal wastewater and COD emissions CSR Information Supplement P. 13Members of the water conservation teamTank for wastewater reuseNoteDue to rounding, the percentage sum for each item does not necessarily amount to 100%.Organizational GovernanceHuman Rights and Labor PracticesThe EnvironmentFair Operating Practices and Consumer IssuesCommunity Involvement and DevelopmentCore Subjects of ISO 2600054AGC Report 2012 Since 1992, the AGC Group has utilized the MSDS (Material Safety Data Sheet), providing its customers with information regarding the use, proper handling during disposal and effect on the environment of its products.In addition, the Group complies with the EU’s REACH chemical substances regulations with regard to the chemicals contained in its products, and conducted its first registration up to November 2010. Underpinned by the Chemicals Com-pany, REACH compliance is coordinated between the supervi-sors of related divisions and Group companies and their only representatives1 within the EU. In Japan, the Group has joined the Joint Article Management Promotion-consortium (JAMP), and provides information for MSDS plus. The Group is also registered as a sponsor in a joint program among the private and the public sectors for collecting and releasing safety in-formation of Japan HPV existing chemical substances (the Japan HPV Challenge Program).The AGC Group is promoting the installation of exhaust gas treatment facilities and the improvement of measurement and analysis technology in its plants both in Japan and other coun-tries. Necessary information about best practices and experi-ences with past pollution prevention activities within the Group are also shared beyond plants.In China, environmental legislation is becoming stricter year by year. In 2007, while adopting coating equipment at AGC Flat Glass (Dalian) (AFD), an exhaust gas treatment facil-ity was also installed. In 2009, Dalian city adopted stricter regulations for SOx emissions, and AFD was able to meet the regulation requirements by operating an existing desulfuriza-tion system, in operation since 2007.While stating that strict compliance with the applicable laws and regulations is a prerequisite, the AGC Group’s Guideline for Prevention of Soil and Groundwater Contamination sets standards for the storage and handling of hazardous substanc-es, storage tank management, and for drainage and rainwater management. The Guideline also sets basic rules about infor-mation disclosure with respect to the measures to be taken when soil or groundwater contamination is detected.Asahi Glass has been continuing measures to prevent the spread of any pollutants and to decontaminate polluted sites. It regularly reports progress to the relevant administra-tive agency and discloses this information on the Group web-site and through other media.The United Nations plans to draw up a treaty in 2013 on mercury reduction that will oblige businesses to manage their mercury, and has been advancing intergovernmental negotiations since 2010. The AGC group has moved beyond previous methods of brine electrolysis, such as diaphragm and mercury processes, to com-plete conversion to the ion-exchange membrane process in 2006, and cooperates as a supplier of important materials for ion-ex-change membranes. In January 2011, the second assembly of the United Nations Environment Programme’s (UNEP) intergovern-mental negotiating committee to prepare a global legally binding instrument on mercury was held in Chiba Prefecture in Japan. The AGC Group at-tended this assembly to pres-ent its role in the mercury re-duction treaty and its Flemion™ ion-exchange membrane.1 A system established by REACH, under which companies outside the EU appoint a corporation or individual to execute registrations and duties pursuant to REACH on their behalf.Proper Management of Chemical SubstancesVOC emissions and amount of PRTR substance emission/transferenceCSR Information Supplement P. 14Air Pollution PreventionPollution PreventionSOx, NOx, soot and dust emissionsCSR Information Supplement P. 14Prevention of Soil and Groundwater ContaminationParticipating in the United Nations Environment Programme’s (UNEP) Treaty on Mercury Reduction ActivitiesAGC GroupDisplay booth at the assembly venueThe EnvironmentChapter 2Responsibilities to Our Stakeholders55AGC Report 2012 In fiscal 2009, the waste-recycling rate at AGC Micro Glass (Thai-land) (AMGT) was in the 50% range. However, by the latter half of fiscal 2010, AMGT had raised the rate to 99% and had achieved Zero-landfill (waste).Results were achieved by analyzing the current state of waste generation, disposal and recycling, listing possible waste-reduction measures, then intensively implementing promising measures. In particular, AMGT was able to greatly reduce its amount of landfill waste by recycling the filters from air conditioning units through The AGC Group is striving to achieve Zero-landfill (waste)1 globally. In fiscal 2011, 64 manufacturing plants achieved Zero-landfill (waste). The Group is encouraging improvement in plants that have not yet achieved Zero-landfill (waste) by introducing waste-reduction methods, new applications for recycling and other measures, supported by information sharing within the Group. The Group’s overall recycling rate in fiscal 2011 was 96.6%.The AGC Group states in its Basic Environmental Policy that it will give consideration to the influence of its activities on the natural environment including biological diversity. In April 2010 a document titled Consideration for Biodiversity was cre-ated, which shared important criteria on biodiversity in the course of business activities across the AGC Group. Asahi Glass is also a promotion partner for the Declaration of Biodi-versity by Nippon Keidanren.The AGC Group is also engaged in forestation activities, including planting trees in Thailand and Indonesia, and pro-motes the use of paper that contributes to sound forest man-agement by thinning in Japan.dismantling and separation and by rese-lecting materials for the abrasive com-pounds used in sandblasting.In addition, employee awareness has been raised through training in recy-cling and thorough actual performance of waste separation, and the circle of co-operation is expanding as each workplace conducts its own volunteer initiatives.In addition to striving to prevent accidents, damage from natural disasters and other crises (unforeseen accidents), the AGC Group is working to prevent the escalation of accidents that do occur by promoting countermeasures to deal prompt-ly and accurately with such crises.With regard to industrial safety and security activities, beginning in fiscal 2011, the Group has used an Integrated Environmental Management System to promote the reinforce-ment of risk reduction and preventative measures. Based on the action plans drawn up by the corporate organization, the CSR Office, each business division will promote fire prevention, disaster prevention and countermeasures for environment-related accidents. In addition to these, the Group will strive for continuous improvement through internal audits.14060402080200(1,000 tons)0989694100(%)(FY)AGC GroupGroup companies in JapanAsahi Glass 20112010322009135200797712008865896.399.599.699.596.92596.8431Recycling rate [AGC Group]Recycling rate [Asahi Glass]1 Zero-landfill (waste) is defined as recycling more than 99% of waste.Intensive Implementation of Waste Reduction Measures Results in Vastly Improved Recycling RateWaste Sent to Landfill and the Recycling RatesAGC Micro Glass (Thailand)Waste ReductionBiodiversity ConservationPromotion of forestation activities in each country and regionwww.agc.com/english/csr/env/act/biodiversity.htmlIndustrial Safety & SecurityBasic Industry Safety & Security Policy (full text) and number of small fires CSR Information Supplement P. 15Main members in activities to improve the waste-recycling rateOrganizational GovernanceHuman Rights and Labor PracticesThe EnvironmentFair Operating Practices and Consumer IssuesCommunity Involvement and DevelopmentCore Subjects of ISO 2600056AGC Report 2012 The AGC Group was investigated by the European Commis-sion for possible violation of antitrust laws, from the second half of the 1990s to the mid-2000s, regarding glass bulbs for cathode-ray tubes (CRT). In October 2011, the Group reached a settlement with the European Commission and paid a fine of 45.1 million euros with the agency. In January 2012, Hankuk Electric Glass, a subsidiary of the Group, incurred a penalty of 18,318 million won after being investigated by Korean Fair Trade Commission regarding the same product. In light of the past conducts mentioned above later being accused, and in order that such incidents do not occur in the future, the AGC Group is taking every step necessary to ensure that all its operations are in compliance with antitrust laws.Specifically, in addition to the Group Code of Conduct, the Group has formulated and implemented global guidelines for compliance with antitrust laws. Under the guidelines, the legitimacy of having a meeting with a competitor company must be thoroughly vetted first. Thereafter, employees are obligated to obtain the permission of superiors in advance of the meeting, and then report in writing the outcome of the meeting. Further, the Group is implementing an array of ad-ditional measures, such as antitrust training workshops in each region and organization, monitoring of group enrollment and participation status in trade associations, and auditing of guideline compliance.The AGC Group is taking steps to promote appropriate stor-age, use, and management of information and information assets based on its Information Security Policy and Standard and its Information Security Guidelines. At the same time, the Group is steadily implementing a Plan, Do, Check and Act (PDCA) cycle to continuously improve information security through education measures such as e-learning and self-checks, and internal audits. In addition, at connection points in the Group network and with the Internet, measures are regularly taken to analyze and evaluate the vulnerability of administrator IDs and passwords for critical IT equipment.In fiscal 2011, the AGC Group self inspected the informa-tion security level of Group companies in every region and integrated this with its improvement activities. Also, informa-tion security advisers from the major Group companies in Asia assembled together in each country and shared informa-tion about pertinent issues and approaches to information security.The AGC Group formulated the AGC Group Purchasing Policy in 2009, and asks business partners in its supply chain to con-duct purchasing activities in line with this policy. In addition, the AGC Group introduced the Ombudsman System for Purchasing in 2004, which has been a critical part of the Group’s efforts to ensure transparency in its procure-ment activities and prevent misconduct. Under this system, business partners who encounter problems in dealing with AGC Group employees can notify in writing the General Man-ager of the Purchase and Logistics Center. Every effort is made to hold such reports strictly confidential while taking immedi-ate steps to solve any identified problems.In order to protect its shareholders and investors, and ensure the fairness and reliability of securities markets, the AGC Group is making every effort to spread awareness of insider trading and devise ways to prevent such misconduct. The prohibition against insider trading is clearly stated in the common funda-mental global principles in AGC Group’s Code of Conduct, and the Group is committed to raising awareness of this rule across the Group through online training and the personal certifications to follow the Code of Conduct that are submitted by employees. Furthermore, in Japan, the Group has its own rules on the prevention of insider trading and on the Informa-tion Management Council. Based on these rules, if an AGC Group director/employee has concerns about commencing a trade, the chairman of the council will check the legality of the trade in advance, thereby preventing insider trading.Compliance with Antitrust LawsFair Operating PracticesMaintaining Information SecurityMeasures implemented in fiscal 2011 to prevent noncom-pliance with antitrust laws (AGC Group)• Number of employees receiving online training (e-learning): about 6,400• Number of employees receiving classroom training: about 740• Number of internal audited sites: 52 Group companies and divisionsEnsuring Fair Purchasing PracticesPrevention of Insider TradingNumber of self-checks on information securityCSR Information Supplement P. 16AGC Group Purchasing Policy (full text)CSR Information Supplement P. 17Global legal management systemCSR Information Supplement P. 16Chapter 2Responsibilities to Our StakeholdersFair Operating Practices and Consumer IssuesTogether with fair operating practices, the AGC Group pursues customer satisfaction based on the provision of high-quality products.57AGC Report 2012 The AGC Group is committed to continuously improving effectiveness and efficiency by building and operating a quality management system based on ISO 9001 in each department, in accordance with the AGC Group Quality Management Principle and AGC Group CS Guideline.Also, each In-house Company/SBU carries out its own internal audits and reviews in a way best suited to its business, while undertaking a Plan, Do, Check and Act (PDCA) cycle for continuous quality improvement. The CSR Office also con-ducts quality monitoring across the Group to ensure the ef-fectiveness of management systems.The AGC Group is taking steps to ensure compliance with pertinent laws and regulations, by creating a list of such requirements for each of its In-house Company/SBU and clarifying the legal and regulatory requirements that each of its products must meet. The nature of the list involved is revised annually in January.Furthermore, in fiscal 2011, by identifying past violations outside the Group, and by compiling lists for products that fall under inspection laws (such as those determined by JIS), the Group has been promoting efforts to “visualize” compliance.The AGC Group is encouraging all employees to participate through their daily work in the enhancement of customer sat-isfaction under the slogan “incorporating the concept of CS into each employee’s daily work processes.” CS is an abbre-viation for customer satisfaction, but the term is not limited to customers who are consumers in the marketplace. The Group includes in its definition of customers “people and organiza-tions who receive benefit (value) from the outcome of work,” such as products and information, within the work process of the Group.In fiscal 2011, the Group promoted initiatives such as integrating CS training at various levels of Group training, in order that the spirit of CS might take root in the DNA of the AGC Group.With an aim to promote AGC as a brand and to interact with stake-holders, AGC Glass Europe (AGEU) began using social media services from July 2011. The initiative hopes to reach out to various stakeholders, such as customers, industry professionals, potential job candidates, the press and the public at large.The result of the activity was a steady growth in fans, followers, likes, retweets and com-ments. This trend is ex-pected to continue in 2012 with further target group interactivity.In October 2010, Asahi Glass opened “AGC studio,” a place where the true nature of archi-tectural glass can be experi-enced, in Kyobashi in Tokyo’s Chuo Ward. By the end of fis-cal 2011, it had been visited by more than 10,000 visitors.AGC studio is intended to be a place where general visitors with an interest in glass, not just business partners, researchers and architects, can stop in at their leisure and learn about the nature of glass and ask questions about how glass can be used or applied. By opening communica-tion channels with a broader range of people, the Group aims to discover unprecedented applications of glass, and create a new culture of glass.Consumer IssuesQuality AssuranceImproving the Quality of Products and ServicesCS Guideline (full text), Quality Management System, Status of System Acquisitions such as ISO 9001, Number of Employees who Passed the QC Certification ExaminationCSR Information Supplement P. 18Complying with Legal and Regulatory Requirements for ProductsNumber of Reported Serious Product AccidentsCSR Information Supplement P. 18Pursuit of Customer Satisfaction (CS)Number of participants in CS related trainingCSR Information Supplement P. 17Efforts to promote CS in each In-house Companywww.agc.com/english/csr/fair/cs.htmlFacebook™1 pageAGC studio1 A registered trademark of Facebook Inc.AGC Glass Europe Reaches Out to Stakeholders through Social Network Services (SNS) Communication with Customers at the Glass CompanyAGC studio: Developing a Space where the True Nature of Glass can be ExperiencedHuman Rights and Labor PracticesThe EnvironmentFair Operating Practices and Consumer IssuesCommunity Involvement and DevelopmentOrganizational GovernanceCore Subjects of ISO 2600058AGC Report 2012 Chapter 2
Responsibilities to Our Stakeholders
Community Involvement and Development
The AGC Group promotes activities that contribute to community development, working
towards the resolution of social issues deriving from regional business development.
Social Contribution Activities
AGC Group Social Contribution Basic Policy
In February 2010, the AGC Group established the AGC Group
Social Contribution Basic Policy. The Group had conducted
social contribution activities in areas around the world prior to
this, but thought it important to increase understanding among
customers, shareholders, investors and society as well as
business partners, employees and all other stakeholders in
order to further promote these activities.
In fiscal 2011, a variety of social contribution activities
introduced on these pages were implemented based on this
policy.
In the future, in addition to continuing the activities in
each region, the Group will promote activities meant to
contribute to the resolution of social issues in fast-growing
countries in which business activities are being developed.
Social Contribution Basic Policy (full text)
CSR Information Supplement P. 19
AGC Group Social Contribution Basic Policy Priority Areas
Support for the next generation
We, as a creator of future value, support the
development of children, who will carry the
future, helping them to live out their dreams.
Harmony with local communities
We, as a member of the communities in which
we operate, contribute to their sustainable
development.
Natural environment conservation
We, as a global enterprise, contribute to the
solution of global environmental problems.
Expenditures in Fiscal 2011 for Social Contribution Activities
Others 5%
Natural
environment
conservation
9%
Total
814 million yen
(525 million yen1)
Support for
the next generation
19%
Harmony with
local communities
67%2
1 Amount in parentheses is total for fiscal 2010
2 Since expenditures related to the Great East Japan Earthquake fell
under “Harmony with local communities,” resultant expenditures for
this area are comparatively greater.
Detailed data regarding social contribution activity expenditures
CSR Information Supplement P. 19
59 AGC Report 2012
Europe——
AGC Group
Participation in activities that
contribute to reductions in CO2
emissions such as the promotion of
low-carbon initiatives in schools
Detailed information:
www.agc.com/english/csr/social/
activity_4.html
United States——
AGC Automotive Americas
Recovery and recycling of used
electronic equipment, such as
computers
Detailed information:
www.agc.com/english/csr/social/
activity_4.html
Taiwan——
AGC Display Glass Taiwan
Financing and volunteer activities
instituted for children’s home
Detailed information:
www.agc.com/english/csr/social/
activity_2.html
Indonesia——
PT Asahimas Chemical
Creating jobs through wooden
pallet business
Detailed information:
www.agc.com/english/csr/social/
activity_3.html
South Korea——
Asahi Glass Fine Techno Korea
Hanwook Techno Glass
Asahi PD Glass Korea
Books donated and book report
competition hosted
Detailed information:
www.agc.com/english/csr/social/
activity_2.html
In Focus
AFT Applies the PDCA Cycle in Activities Aimed at
Contributing to Local Communities
AGC Flat Glass (Thailand) Public (AFT) began implementing
the Plan, Do, Check, Act (PDCA) Cycle in CSR operations in
2006, and since then, has expanded it to encompass commu-
nity development activities conducted by the company since
1974. AFT created a standardized PDCA form to systemati-
cally evaluate the progress of each project from the stand-
point of ensuring its sustainability. Furthermore, the company
has been making the most of its management capabilities
and networks to collaborate in various projects with commu-
nity residents, experts and NGOs.
As an example of how the cycle is implemented, in its
Open Kids’ Vision project, AFT planned activities for improv-
ing the education of children in rural forested regions, and
then made sure that everything, including constructing a mul-
tipurpose building in their region, was carried out. When
progress was checked, it was apparent that the children had
developed their skills in traditional dancing and music,
through which they gained a deeper sense of pride in the
local community. AFT is now acting on these results to plan
future activities.
PDCA cycle.
AFT intends to continue contributing to community
development and foster these activities by implementing the
AFT employees who built the
facilities with local residents
PDCA sheet
Social contribution activities in various parts of the world
Support for the next generation
www.agc.com/english/csr/social/activity_2.html
Harmony with local communities
www.agc.com/english/csr/social/activity_3.html
Natural environment conservation
www.agc.com/english/csr/social/activity_4.html
Core Subjects of ISO 26000
Organizational
Governance
Human Rights and
Labor Practices
The Environment
Fair Operating
Practices and
Consumer Issues
Community
Involvement and
Development
Europe——
AGC Group
Participation in activities that
contribute to reductions in CO2
emissions such as the promotion of
low-carbon initiatives in schools
Detailed information:
www.agc.com/english/csr/social/
activity_4.html
United States——
AGC Automotive Americas
Recovery and recycling of used
electronic equipment, such as
computers
Detailed information:
www.agc.com/english/csr/social/
activity_4.html
AGC Group Social Contribution Basic Policy Priority Areas
Support for the next generation
We, as a creator of future value, support the
development of children, who will carry the
future, helping them to live out their dreams.
Harmony with local communities
We, as a member of the communities in which
we operate, contribute to their sustainable
development.
Natural environment conservation
We, as a global enterprise, contribute to the
solution of global environmental problems.
Expenditures in Fiscal 2011 for Social Contribution Activities
Others 5%
Natural
environment
conservation
9%
Total
814 million yen
(525 million yen1)
Support for
the next generation
19%
Harmony with
local communities
67%2
1 Amount in parentheses is total for fiscal 2010
2 Since expenditures related to the Great East Japan Earthquake fell
under “Harmony with local communities,” resultant expenditures for
this area are comparatively greater.
Detailed data regarding social contribution activity expenditures
CSR Information Supplement P. 19
Taiwan——
AGC Display Glass Taiwan
Financing and volunteer activities
instituted for children’s home
Detailed information:
www.agc.com/english/csr/social/
activity_2.html
Indonesia——
PT Asahimas Chemical
Creating jobs through wooden
pallet business
Detailed information:
www.agc.com/english/csr/social/
activity_3.html
South Korea——
Asahi Glass Fine Techno Korea
Hanwook Techno Glass
Asahi PD Glass Korea
Books donated and book report
competition hosted
Detailed information:
www.agc.com/english/csr/social/
activity_2.html
In Focus
AFT Applies the PDCA Cycle in Activities Aimed at
Contributing to Local Communities
AGC Flat Glass (Thailand) Public (AFT) began implementing
the Plan, Do, Check, Act (PDCA) cycle in CSR operations in
2006, and since then, has expanded it to encompass commu-
nity development activities conducted by the company since
1974. AFT created a standardized PDCA form to systemati-
cally evaluate the progress of each project from the stand-
point of ensuring its sustainability. Furthermore, the company
has been making the most of its management capabilities
and networks to collaborate in various projects with commu-
nity residents, experts and NGOs.
As an example of how the cycle is implemented, in its
Open Kids’ Vision project, AFT planned activities for improv-
ing the education of children in rural forested regions, and
then made sure that everything, including constructing a mul-
tipurpose building in their region, was carried out. When
progress was checked, it was apparent that the children had
developed their skills in traditional dancing and music,
through which they gained a deeper sense of pride in the
local community. AFT is now acting on these results to plan
future activities.
AFT intends to continue contributing to community
development and foster these activities by implementing the
PDCA cycle.
AFT employees who built the
facilities with local residents
PDCA sheet
Social contribution activities in various parts of the world
Support for the next generation
www.agc.com/english/csr/social/activity_2.html
Harmony with local communities
www.agc.com/english/csr/social/activity_3.html
Natural environment conservation
www.agc.com/english/csr/social/activity_4.html
AGC Report 2012
60
Chapter 2
Responsibilities to Our Stakeholders
Community Involvement and Development
Main Support Activities for Areas Affected by the Great East Japan Earthquake
AGC Group (Japan)
Laminated Glass for Earthquake/Typhoon Resistance Donated to Disaster Area Schools through
Glass Power Campaign
As part of its contribution to society through business, the AGC Group runs the Glass
Power Campaign, a project in which laminated glass for earthquake/typhoon resistance
is donated to designated evacuation places in municipalities in Japan. At the end of 2010,
donations had been made to 23 places since the project’s beginning in October 2005.
In fiscal 2011, due to the Great East Japan Earthquake, donations were made to
nine facilities in the prefectures of Iwate, Miyagi and Fukushima. Construction was
performed in stages beginning in September, and by February 2012, donations to all
the facilities had been completed. People involved with the recipient schools said,
“Having safe glass here means that we’ve gained safety for the whole community, not
just the school.”
The gymnasium of Hashiura Municipal Elementary
School in Ishinomaki City, a laminated glass for
earthquake/typhoon resistance recipient
Providing Continuous Support for Disaster Victims as a Company Local to the Disaster Area
AGC Electronics (AGEL), located in Fukushima Prefecture’s Koriyama City, believed
that its own future could not be bright if the Fukushima area did not recover, and
concentrated its effor ts on suppor ting the victims of the Great East Japan
Earthquake.
Specifically, the company donated fully laminated tempered glass tableware, an
AGC Group product, and also hosted a social gathering in the form of a barbecue and
provision of imoni (stewed potatoes) at temporary housing for refugees from Namie
town. In addition, AGEL drew up and donated maps for area children showing the
radiation measurements along the way to their schools.
AGEL plans to continue doing what it can do for the local community, including
conducting support activities at the temporary housing.
Donation of maps showing radiation measurements
to the elementary school
New Scholarship System for High School Victims of Disaster
The Asahi Glass Scholarship Foundation has established a new scholarship system
for high school students affected by the Great East Japan Earthquake in 2011. The
effects of the earthquake on learning environments are varied and long-term. This
system was established so that students who sustained damaging or economic
effects would not be forced to give up on their studies, and provides scholarships
to students currently in high school. Scholarships for students who plan to continue
on to a higher institution after graduation will include the time they spend at that
institution as well. Scholarship students will be recruited for three years, beginning
in fiscal 2012, from 11 schools in the badly damaged area along the Pacific coast of
the Tohoku Region.
Iwate
Miyagi
Fukushima
High schools eligible for scholarships
Measures taken in response to the Great East Japan Earthquake
www.agc.com/english/csr/social/news.html
61 AGC Report 2012
: Initiatives : Activity examples and employee comments : Examples of CSR-related awardsSupplementary to the information presented in this report, the CSR Website is contains data and initiatives, as well as examples of activities that are not contained herein.CSR Website AccessCategory in this report 1Title on CSR Web page and main content 2Scope of activityURLCSR at the AGC GroupPP. 39–40CSR Promotion System and Cases Progress in CSR Management Recognized by the Ministry of Industry in Thailand Regional Government in Indonesia Gives Top Honors in its CSR AwardsAGC Flat Glass (Thailand) Public PT Asahimas Flat Glass, Tbk www.agc.com/english/csr/agcgroupcsr/system.htmlOrganizationalGovernancePP. 43–46Internal Audits Environmental Safety and Security AuditsAGC Groupwww.agc.com/english/csr/integrity/csrmng.htmlParticipation in External Initiatives Participating in Initiatives as a WBCSD Member CompanyAGC Groupwww.agc.com/english/csr/integrity/membership.htmlRisk Management Measures for Pandemic Influenza/AGC Group Basic Principle to Cope with Natural Disaster/Business Continuity Plan Cases Ensuring Stable Procurement of the Rare Earth, Cerium oxide, for Glass-polishing Material Guidelines Concerning Radiation Exposure to Ensure a Safe Work-ing Environment for EmployeesAGC Group AGC Group AGC Ceramics www.agc.com/english/csr/integrity/riskmng.htmlCompliance Compliance Training Compliance Meeting Between Thailand, Indonesia and the Philippines Compliance Measures in Europe and North AmericaAGC GroupAGC Group (Asia other than Japan)AGC Group (Europe/North America)www.agc.com/english/csr/integrity/compliance.htmlCommunication Activities Public Relations/Investor Relations/Returns to Shareholders/Communication within the GroupAGC Groupwww.agc.com/english/csr/communication/stakeholders.htmlHuman Rights andLabor PracticesPP. 47–51Respect for Human Rights and Sufficient Labor Practices Thailand’s Best Practice Workplace on Labor Relations and Labor Welfare Award Won Consecutively Receiving KAPATID Award for Two Categories by the Employers Confederation of the PhilippinesAGC Automotive (Thailand) AGC Flat Glass Philippines www.agc.com/english/csr/employee/human_rights.htmlMaking the Most of Diversity Exchange Researcher’s Comment Comments from Participants of the Regional Program for Leader TrainingJapan/BelgiumAGC Group (Asia including Japan) www.agc.com/english/csr/employee/diversity.htmlEmployee Education Transfer of Skills from High Performers/AGC Monozukuri Training Center Enhancement of Employee Safety, Technology and Skills Education, and Contributions to Regional Development of Human ResourcesAGC GroupPT Asahimas Chemical www.agc.com/english/csr/employee/education.htmlOccupational Health & Safety Hazard Simulation Training/Health Management Policy Hazard Simulation Training Participants’ Comment Implementation of Safety Measures beyond National and Organi-zational Boundaries Sharing the Importance of the Safety and Environment with Fami-lies and Local Communities Achieving Zero Accidents by Indonesia’s Ministry of Manpower and Transmigration Selected as Healthy WorksitesAGC GroupPT Asahimas Flat Glass, Tbk Electronics Company/ Chemicals CompanyAGC Automotive Americas PT Asahimas Flat Glass, Tbk AGC Display Glass Taiwanwww.agc.com/english/csr/employee/safety.htmlThe EnvironmentPP. 52–56Environmental Management Expanding the Integrated EMS in each In-house Company/Promotion of Risk Reduction Activities at Each PlantAGC Groupwww.agc.com/english/csr/env/act/mng.htmlEnvironment, Safety & Security Education Going Green Campaign Sees Steady Improvement Eco Club—A Volunteer Group Involved in Activities for the EnvironmentAGC Glass EuropeAGC Group (Japan) www.agc.com/english/csr/env/act/education.htmlReduction in Greenhouse Gas Emissions Installing a Co-generation System to Reduce GHG Emissions Melting Furnace Energy-Saving Technology (In-flight Melting, Total Oxygen Combustion, All-electric Melting, Fuel Conversion) Using Caustic Soda to Recover and Recycle CO2 Expanding the Scope of Energy Conservation Assessment Recovering and Recycling CFCs Reducing the Environmental Impact of Transportation Implementing Rotating Shift Work to Save Electricity in the After-math of Japan’s Earthquake DisasterAGC Glass Europe AGC Group Chemicals CompanyAGC GroupChemicals CompanyAGC Glass EuropeAGC Group (Japan) www.agc.com/english/csr/env/act/gas.htmlLife Cycle CO2 Emissions Calculation of the Carbon Footprint Associated with the Manufac-ture and Use of ProductsAGC Glass Europewww.agc.com/english/csr/env/act/lc.htmlWater Resource Usage Selemion™, Ion-exchange Membranes, for Safe Drinking Water Reducing Water Use and Promoting Water RecyclingAGC Engineering PT Asahimas Flat Glass, Tbkwww.agc.com/english/csr/env/act/water.htmlChemical Substances Management Chemical Substances Management Manual/Considerations for Safety during Chemical Transport/Proper Management and Treat-ment of Asbestos Compliance with PRTR Act and VOC Reduction/Proper Manage-ment and Treatment of PCBs Accepting Trainees from OPCW Issuing MSDSs for Each CountryAGC Group AGC Group (Japan) Chemicals CompanyChemicals Companywww.agc.com/english/csr/env/act/chemical.htmlPollution Prevention Air Pollution Prevention ActivitiesAGC Glass Europewww.agc.com/english/csr/env/act/pollution.htmlBiodiversity Conservation Forestation Activities in Each Country and Region Using Simple Pallets to Improve Transportation Efficiency Proactive Use of Paper that Contributes to Sound Forest Manage-ment by ThinningAGC Group CompaniesAGC Group (Asia including Japan)AGC Group (Japan) www.agc.com/english/csr/env/act/biodiversity.htmlEnvironmental Products Introducing Environmental ProductsAGC Groupwww.agc.com/english/csr/env/products/Industrial Safety & Security Fire Prevention and Recurrence Prevention/Disaster Prevention and Environment-related Accident Countermeasures Safety and Security EffortsAGC Group AGC Flat Glass (Dalian)www.agc.com/english/csr/env/security.htmlFair Operating Practices and Consumer IssuesPP. 57–58Fair Operating Practices Global Legal Management System/Legal Employment of Contract and Temporary Workers/Compliance with the Act against Delay in Payment of Subcontract Proceeds, Etc., to Subcontractors/Protecting and Respecting Intellectual Property RightsAGC Groupwww.agc.com/english/csr/fair/habitp.htmlWith Business Partners Occupational Health and Safety Education Among Business Partners Promoting Green Procurement/Initiatives Related to Conflict Minerals Satisfaction Survey for Business Partners, Annual Suppliers MeetingAGC Group (Japan)AGC GroupAGC Group www.agc.com/english/csr/fair/business_partner.htmlQuality Assurance Compliance with the Consumer Products Safety Act Quality Management in Each In-house Company/Implementation of Quality TrainingAGC Group (Japan)AGC Group www.agc.com/english/csr/fair/qms.htmlCustomer Satisfaction Implementing Full-Scale CS Training Efforts to Promote CS in Each In-house CompanyAGC GroupAGC Groupwww.agc.com/english/csr/fair/cs.html1 From “Organizational Governance” onwards, the core subjects cited in ISO 26000 2 Excerpt62AGC Report 2012 Research & Development
Since its foundation, the AGC Group has developed its core technologies centered on the
areas of glass, chemicals and ceramics. In an effort to build the foundations for growth set
forth in , the AGC Group examines global trends with a long-term perspective,
sets a clear direction for technological strategies, and strives for the sophistication, integration
and application of its core technologies.
technologies” that form the basis for these technologies.
Through the sophistication, integration and applica-
tion of our core technologies, the Group works on techno-
logical development to build foundations for growth set
forth in the Group’s management policy, .
Building Foundations for Growth through the Sophistication, Integration and Application of the Group’s Core
Technologies
The AGC Group’ s core technologies are centered on
“glass materials and glass manufacturing technologies,”
“coating technologies,” “optics and electronics technologies,”
“ceramics material technologies” and “fluorine and other
chemistry technologies,” as well as “fundamental common
Core Technologies of the AGC Group and Foundations for Growth Set forth in
Core Technologies
Glass materials and
glass manufacturing
technologies
• Glass materials design
• Glass manufacturing
• Glass forming and
processing
Coating
technologies
• Dry coating
• Wet coating
• Patterning
Optics and
electronics
technologies
• Liquid crystal
materials
• Fine pattering
• Assembly
• Optical design
Ceramics materials
technologies
• Refractory lining
• Fine ceramics
Fluorine and
other chemistry
technologies
• Fluorine chemistry
• Electrochemistry
• Inorganic materials
• Nanomaterials
Fundamental
common
technologies
• Engineering
• Sensing
• Evaluation and
analysis
• Simulation
Glass-technology-driven Company
Enhancing Manufacturing Technologies to
Make Progress in New Product Development
Ultra-Thin Glass
The AGC Group has success-
fully developed ultra-thin
glass using the float process.
This ultra-thin glass is the
world’ s thinnest float glass
with a thickness of only 0.1
millimeters. (See page 31)
Dragontrail™ Specialty
Glass for Chemical
Strengthening
The AGC Group has devel-
oped this specialty glass for
chemical strengthening that
dramatically increases the
strength, scratch resistance,
and texture quality of cover
glass for smartphones and
other displays. (See page 19)
Delivering Technology Solutions for
Environmental and Energy Issues
Developing Production Processes and
Environmentally Friendly Products
Hot-oxy Combustion
With oxygen as the sole fuel
used, NOx emissions are
d e c r e a s e d a n d e n e r g y
efficiency is increased.
Oxygen heated by heat exchange
Energy efficiency
improved
Oxygen
Exhaust
gas
In-flight Melting
By injecting granular materi-
als into plasma combustion
flames, energy and CO 2
emissions can be reduced
by half during the glass
melting stage.
Glass melted
Glass melting furnace
Injection of granular materials
Oxygen burner
Plasma torch
Plasma
Melting of
granular materials
Melting
tank
High-speed
refining
To forming
process
63
AGC Report 2012
AGC Report 2012 64
Carrying out Seamless Operations Ranging from
Technology Outlook and Technology Roadmap,
Basic Research to Product Development
which Define the Direction of the Group’s
In R&D, the Research Center studies basic, long-term,
Technological Strategies
innovative, and inter-business themes, while the
The AGC Group formulates a Technology Roadmap
Production Technology Center and Engineering Center
based on its Technology Outlook, which covers global
undertake the development of innovative production
trends in various areas such as energy, resources and
technologies and equipment technologies.
population from a long-term perspective, and uses the
The R&D Centers of each In-house Company
comprehensive outlook along with the Group’ s mid- to
enhance production technologies and undertake product
long-term business strategies to set the direction of the
development in close contact with customers.
Group’s global technological strategies.
In 2012, the AGC Group newly established the
Technology General Division that integrates the Research
Center, Production Technology Center, Engineering
Center and Intellectual Property Center and newly-
established Technology Planning Office, which formulates
group-wide technological strategies, to carry out the
Group’ s comprehensive technology-related strategies in
a more effective and efficient manner.
AGC Group Technology Outlook and Technology Roadmap
Various trends
AGC’s 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
Technology strategy
Fundamental/Basic Technology
Product Development Technology
Production Technology Improvement
R&D Structure
Technology Planning Office
(develops and promotes
technological strategy)
Research Center
(materials development)
Technology
General
Division
Production Technology Center
(develops production-related
technologies)
Engineering Center
(develops engineering technologies)
Intellectual Property Center
(formulates and implements intellectual-
property-related strategies)
n
o
i
t
a
r
o
b
a
l
l
o
C
Glass
Company
R&D
Division
Electronics
Company
R&D
Division
Chemicals
Company
R&D
Division
AGC
Ceramics
R&D
Division
Research & Development
Since its foundation, the AGC Group has developed its core technologies centered on the
areas of glass, chemicals and ceramics. In an effort to build the foundations for growth set
forth in , the AGC Group examines global trends with a long-term perspective,
sets a clear direction for technological strategies, and strives for the sophistication, integration
and application of its core technologies.
Building Foundations for Growth through the Sophistication, Integration and Application of the Group’s Core
Technologies
The AGC Group’ s core technologies are centered on
technologies” that form the basis for these technologies.
“glass materials and glass manufacturing technologies,”
Through the sophistication, integration and applica-
“coating technologies,” “optics and electronics technologies,”
tion of our core technologies, the Group works on techno-
“ceramics material technologies” and “fluorine and other
logical development to build foundations for growth set
chemistry technologies,” as well as “fundamental common
forth in the Group’s management policy, .
Core Technologies of the AGC Group and Foundations for Growth Set forth in
Glass materials and
glass manufacturing
technologies
• Glass materials design
• Glass manufacturing
• Glass forming and
processing
Core Technologies
Optics and
electronics
technologies
• Liquid crystal
materials
• Fine pattering
• Assembly
• Optical design
Fluorine and
other chemistry
technologies
• Fluorine chemistry
• Electrochemistry
• Inorganic materials
• Nanomaterials
Coating
technologies
• Dry coating
• Wet coating
• Patterning
Ceramics materials
technologies
• Refractory lining
• Fine ceramics
Fundamental
common
technologies
• Engineering
• Sensing
• Evaluation and
analysis
• Simulation
Glass-technology-driven Company
Enhancing Manufacturing Technologies to
Make Progress in New Product Development
Ultra-Thin Glass
The AGC Group has success-
fully developed ultra-thin
glass using the float process.
This ultra-thin glass is the
world’ s thinnest float glass
with a thickness of only 0.1
millimeters. (See page 31)
Dragontrail™ Specialty
Glass for Chemical
Strengthening
The AGC Group has devel-
oped this specialty glass for
chemical strengthening that
dramatically increases the
strength, scratch resistance,
and texture quality of cover
glass for smartphones and
other displays. (See page 19)
Delivering Technology Solutions for
Environmental and Energy Issues
Developing Production Processes and
Environmentally Friendly Products
Hot-oxy Combustion
With oxygen as the sole fuel
used, NOx emissions are
d e c r e a s e d a n d e n e r g y
efficiency is increased.
Oxygen heated by heat exchange
Energy efficiency
improved
Oxygen
Exhaust
gas
In-flight Melting
By injecting granular materi-
als into plasma combustion
flames, energy and CO 2
emissions can be reduced
by half during the glass
melting stage.
Glass melted
Glass melting furnace
Injection of granular materials
Oxygen burner
Plasma torch
Plasma
Melting of
granular materials
Melting
tank
High-speed
refining
To forming
process
Carrying out Seamless Operations Ranging from
Basic Research to Product Development
In R&D, the Research Center studies basic, long-term,
innovative, and inter-business themes, while the
Production Technology Center and Engineering Center
undertake the development of innovative production
technologies and equipment technologies.
The R&D Centers of each In-house Company
enhance production technologies and undertake product
development in close contact with customers.
In 2012, the AGC Group newly established the
Technology General Division that integrates the Research
Center, Production Technology Center, Engineering
Center and Intellectual Property Center and newly-
established Technology Planning Office, which formulates
group-wide technological strategies, to carry out the
Group’ s comprehensive technology-related strategies in
a more effective and efficient manner.
Technology Outlook and Technology Roadmap,
which Define the Direction of the Group’s
Technological Strategies
The AGC Group formulates a Technology Roadmap
based on its Technology Outlook, which covers global
trends in various areas such as energy, resources and
population from a long-term perspective, and uses the
comprehensive outlook along with the Group’ s mid- to
long-term business strategies to set the direction of the
Group’s global technological strategies.
AGC Group Technology Outlook and Technology Roadmap
Various trends
AGC’s 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
Technology strategy
R&D Structure
Fundamental/Basic Technology
Product Development Technology
Production Technology Improvement
Technology Planning Office
(develops and promotes
technological strategy)
Research Center
(materials development)
Technology
General
Division
Production Technology Center
(develops production-related
technologies)
Engineering Center
(develops engineering technologies)
Intellectual Property Center
(formulates and implements intellectual-
property-related strategies)
n
o
i
t
a
r
o
b
a
l
l
o
C
Glass
Company
R&D
Division
Electronics
Company
R&D
Division
Chemicals
Company
R&D
Division
AGC
Ceramics
R&D
Division
63
AGC Report 2012
AGC Report 2012 64
SouthAmericaAsiaJapanNorth AmericaEuropeAsahi Glass Co., Ltd.The AGC Group is expanding its global business by leveraging its extensive networks of companies operating in some 30 countries and regions in Japan, Asia, Europe and North America. 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 JapanIWAKI Houseware Co., Ltd.Ise Chemicals CorporationKeiyo 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., LtdHokkaido Soda Co., Ltd.AGC Ceramics Co., Ltd.Japan Plibrico Industries 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.ThailandAGC 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 Matex (Thailand) Co., Ltd.AGC Technology Solutions (Thailand) Co., Ltd.IndonesiaPT Asahimas Flat Glass, TbkPT IWAKI Glass IndonesiaPT Asahimas ChemicalAGC Technology Solutions (Indonesia) Co., Ltd.SingaporeAGC Flat Glass Asia Pacific Pte. Ltd.AGC Electronics Singapore Pte. Ltd.AGC Chemicals Asia Pacific Pte. Ltd.AGC Singapore Services Pte. Ltd.MalaysiaAGC Flat Glass (Malaysia) Sdn. Bhd.MCIS Safety Glass Sdn. Bhd.The PhilippinesAGC Flat Glass Philippines, Inc.AGC Automotive Philippines, Inc.TaiwanAGC Display Glass Taiwan Co., Ltd.AGC Electronics Taiwan Co., Ltd.IndiaAsahi India Glass Co., Ltd.ChinaAGC 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 Display Glass (Shenzhen) Co., Ltd.AGC Chemicals Trading (Shanghai) Co., Ltd.Zibo Asahi Glass Alumina Materials Co., Ltd.Yixing AGC Ceramics 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.KoreaKorea Autoglass CorporationHanwook Techno Glass Co., Ltd.Asahi Glass Fine Techno Korea Co., Ltd.Asahi PD Glass Korea Co., Ltd.AGC Display Glass Ochang Co., Ltd.The United StatesAGC Glass Company North AmericaAGC Soda CorporationAGC Automotive Americas Co.AGC Automotive Americas R&D, Inc.AGC Electronics America, Inc.AGC Chemicals Americas, Inc.Woodward Iodine CorporationAGC America, Inc.AGC Capital, Inc.CanadaAGC Flat Glass North America Ltd.AGC Automotive Canada, Inc.MexicoAGC Automotive Glass Mexico, S.A. de C.V.BelgiumAGC Glass Europe S.AAGC Glass Europe Sales S.AAGC Automotive Europe S.A.AGC Automotive Belgium S.A.AGC Europe S.A.The NetherlandsAGC Flat Glass Nederland B.V.The United KingdomAGC Glass UK Ltd.AGC Chemicals Europe, Ltd.Czech RepublicAGC Flat Glass Czech a.s., clen AGC GroupAGC Automotive Czech a.s.RussiaOJSC AGC Bor GlassworksAGC Flat Glass Klin LLCFranceAGC France SASItalyAGC Flat Glass Italia S.r.lAGC Automotive Italia S.r.lSpainAGC Flat Glass Iberica S.A.GermanyAGC Glass Germany GmbHHungaryAGC Glass Hungary LtdPolandAGC Gdansk Sp. z o.o.TurkeyAGC Otomotiv Adapazari Üretim, Sanayi Ve Ticaret Anonim SirketiGlassElectronicsChemicalsCeramicsOthersNorth AmericaEuropeJapanAsahi Glass Co., Ltd.NoteAs of end of March 2012, including equity method affiliates, etc., not using the “AGC” brand name.AsiaSouth AmericaGlobal NetworkBrazilAGC Glass Brazil, Inc.AGC Report 2012 65AGC Report 2012 66 SouthAmericaAsiaJapanNorth AmericaEuropeAsahi Glass Co., Ltd.The AGC Group is expanding its global business by leveraging its extensive networks of companies operating in some 30 countries and regions in Japan, Asia, Europe and North America. 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 JapanIWAKI Houseware Co., Ltd.Ise Chemicals CorporationKeiyo 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., LtdHokkaido Soda Co., Ltd.AGC Ceramics Co., Ltd.Japan Plibrico Industries 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.ThailandAGC 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 Matex (Thailand) Co., Ltd.AGC Technology Solutions (Thailand) Co., Ltd.IndonesiaPT Asahimas Flat Glass, TbkPT IWAKI Glass IndonesiaPT Asahimas ChemicalAGC Technology Solutions (Indonesia) Co., Ltd.SingaporeAGC Flat Glass Asia Pacific Pte. Ltd.AGC Electronics Singapore Pte. Ltd.AGC Chemicals Asia Pacific Pte. Ltd.AGC Singapore Services Pte. Ltd.MalaysiaAGC Flat Glass (Malaysia) Sdn. Bhd.MCIS Safety Glass Sdn. Bhd.The PhilippinesAGC Flat Glass Philippines, Inc.AGC Automotive Philippines, Inc.TaiwanAGC Display Glass Taiwan Co., Ltd.AGC Electronics Taiwan Co., Ltd.IndiaAsahi India Glass Co., Ltd.ChinaAGC 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 Display Glass (Shenzhen) Co., Ltd.AGC Chemicals Trading (Shanghai) Co., Ltd.Zibo Asahi Glass Alumina Materials Co., Ltd.Yixing AGC Ceramics 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.KoreaKorea Autoglass CorporationHanwook Techno Glass Co., Ltd.Asahi Glass Fine Techno Korea Co., Ltd.Asahi PD Glass Korea Co., Ltd.AGC Display Glass Ochang Co., Ltd.The United StatesAGC Glass Company North AmericaAGC Soda CorporationAGC Automotive Americas Co.AGC Automotive Americas R&D, Inc.AGC Electronics America, Inc.AGC Chemicals Americas, Inc.Woodward Iodine CorporationAGC America, Inc.AGC Capital, Inc.CanadaAGC Flat Glass North America Ltd.AGC Automotive Canada, Inc.MexicoAGC Automotive Glass Mexico, S.A. de C.V.BelgiumAGC Glass Europe S.AAGC Glass Europe Sales S.AAGC Automotive Europe S.A.AGC Automotive Belgium S.A.AGC Europe S.A.The NetherlandsAGC Flat Glass Nederland B.V.The United KingdomAGC Glass UK Ltd.AGC Chemicals Europe, Ltd.Czech RepublicAGC Flat Glass Czech a.s., clen AGC GroupAGC Automotive Czech a.s.RussiaOJSC AGC Bor GlassworksAGC Flat Glass Klin LLCFranceAGC France SASItalyAGC Flat Glass Italia S.r.lAGC Automotive Italia S.r.lSpainAGC Flat Glass Iberica S.A.GermanyAGC Glass Germany GmbHHungaryAGC Glass Hungary LtdPolandAGC Gdansk Sp. z o.o.TurkeyAGC Otomotiv Adapazari Üretim, Sanayi Ve Ticaret Anonim SirketiGlassElectronicsChemicalsCeramicsOthersNorth AmericaEuropeJapanAsahi Glass Co., Ltd.NoteAs of end of March 2012, including equity method affiliates, etc., not using the “AGC” brand name.AsiaSouth AmericaGlobal NetworkBrazilAGC Glass Brazil, Inc.AGC Report 2012 65AGC Report 2012 66 Board of Directors, Corporate Auditors and Executive Officers
Milestones
Board of Directors
Kazuhiko Ishimura
Representative Director
President & CEO
Yuji Nishimi
Representative Director
Senior Executive Vice President
Katsuhisa Kato
Representative Director
Executive Vice President
Takashi Fujino
Director
Senior Executive Officer
Kunihiro Matsuo
Director (Outside)
[Attorney At Law,
Kunihiro Matsuo Law Office]
Hajime Sawabe
Director (Outside)
[Representative Director,
Chairman, TDK Corporation]
Masahiro Sakane
Director (Outside)
[Chairman of the Board,
Komatsu Ltd.]
Executive Officers Corporate
President & CEO
Kazuhiko Ishimura
CEO
Senior Executive
Vice Presidents
Yuji Nishimi
Overall business management
(AGC Group improvement
activities, electronics business
and business development)
Akio Endo
President of Glass Company
Executive Vice
Presidents
Katsuhisa Kato
Overall business management
(Technology); GM of Technology
General Division
Kei Yonamoto
Brazil Global Project
Team Leader
Senior Executive
Officers
Shukichi Umemoto
GM of Finance & Control Office
Marehisa Ishiko
Regional President of North
America, Glass Company
Shinichi Kawakami
GM of Human Resources &
Administration Office
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
Overall business management
(Finance); GM of Office of the
President
Masayuki Kamiya
Chief Representative of AGC
Group for China
Executive Officers
Tadayuki Oi
GM of Production Technology
Center, Technology General
Division
Takuya Shimamura
President of Chemicals
Company
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 Office
Akinobu Shimao
President of AGC Ceramics
Co., Ltd.
Tomoya Takigawa
GM of Research Center,
Technology General Division
Yasumasa Nakao
Vice President, Technology,
Glass Company
Takashi Shimbo
President Director of AGC
(China) Holdings Co., Ltd.
Shinji Miyaji
Group Leader of Corporate
Planning Group, Office of the
President
Kimikazu Ichikawa
Regional President of
Japan/Asia Pacific, Glass
Company
Yoshinori Kobayashi
GM of Electronics General Div.,
Electronics Company
Kazuyoshi Watanabe
GM of Technology
Development General Div.,
Electronics Company
Yoshinori Hirai
GM of Business Development
Office
Kihachiro Okamoto
Vice President, Automotive,
Glass Company
Shigekuni Inoue
GM of Electronic Glass General
Div., Electronics Company
Corporate Auditors
Takashi Terashima
Izumi Tamai (Outside)
Shigeru Hikuma
(Outside)
Kenji Haga (Outside)
As of March 29, 2012
History of AGC Group
Products & Technologies of AGC Group
2002
–
Toward
Global
Management
2010 • New medium-term management plan
started.
“ -2012”
2008 • Management policy introduced.
2007 • Group brand unified as “AGC.”
• Asahi Glass Company’s 100th
anniversary celebrated.
2004 • “JIKKO” management policy introduced.
2002 • Glaverbel made into a wholly owned subsidiary.
• AGC Group Vision formulated.
• Global In-house Company System introduced.
1992 • 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.
1981 • Belgian glassmaker Glaverbel
S.A. acquired. (photo )
1
1950
–
2001
Era of
Growth and
Expansion
1956 • Manufacture of automotive glass
begun. (photo )
2
• The Indo-Asahi Glass Co., Ltd.
established in India.
1954 • Asahi Glass entered the Cathode
Ray Tube (CRT) glass bulb
business. (photo )
3
1907
–
1949
The Early
Years
1933 • Caustic soda production using
lime process begun.
1925 • Shoko Glass Co., Ltd. established
in China. (photo )
4
1916 • Production of refractories begun
at the Amagasaki Plant.
1907 • Asahi Glass Company founded in
Amagasaki, Hyogo Prefecture.
(photo )
5
2011 • “Dragontrail™” glass for chemical
strengthening launched. (photo )
6
• Development of 0.1-millimeter-thick
“ultra-thin glass”—the world’s
thinnest—using the float method.
(photo )
7
• “UV Verre Premium™” glass for
automotive door windows
introduced.
2010 • Sales of “FONTEX™”, a
commercial plastic optical fiber
enabling the world’s highest
transmission speed, launched.
2006 • “Fluon® ETFE Film” selected for the main stadium and
the venue for aquatics games at a global sport event in
Beijing.
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.
1980 • AZEC System of caustic soda manufacturing using
ion-exchange membrane developed.
1
1975 • Production of “Asahi Guard™” fluorinated water and oil
repellents and “Aflon™COP” fluorinated resins begun.
• Ion-exchange membrane method for manufacturing
caustic soda developed.
1966 • Production of float glass begun.
(photo )
8
1961 • Asahi Glass diversified into
organic chemicals, propylene
oxide and propylene glycol
production started.
1954 • Production of double-glazing units (Pairglass™) begun.
1938 • Production of tempered glass and laminated glass begun.
1928 • Production of ordinary sheet glass using the Fourcault
process begun.
1917 • First production of soda ash using the ammonium
method in Japan.
1909 • Production of Belgian-type
hand-blown sheet glass (photo )
9
• The first sheet glass successfully
manufactured in Japan, begun.
2
3
4
5
6
7
8
9
67
AGC Report 2012
AGC Report 2012 68
Reporting and Editorial Policy
Board of Directors, Corporate Auditors and Executive Officers
Contents
Milestones
Board of Directors
In this report, the AGC Group clearly communicates its growth strategy to stakeholders, in
accordance with its corporate mission to “Look Beyond” to make the world a brighter place.
From this fiscal year onward, the AGC Group will combine its AGC
This report has been compiled in two chapters.
Report (company and business information) and CSR Report. In this
report, the Group aims to clearly communicate to stakeholders its
In Chapter 1 “Business Overview,” the report presents business
growth strategy of effectively advancing its business initiatives and
summaries and strategies, as well as key achievements in the
CSR goals as an integrated whole under the corporate mission to
Group’s three major businesses—glass, electronics and chemicals.
Kazuhiko Ishimura
Representative Director
“Look Beyond” to make the world a brighter place, as outlined in
Representative Director
Yuji Nishimi
Katsuhisa Kato
Representative Director
Takashi Fujino
Director
the Group Vision.
President & CEO
Senior Executive Vice President
In Chapter 2 “Responsibilities to Our Stakeholders,” the report
Executive Vice President
Senior Executive Officer
The AGC Group hopes to give its stakeholders a comprehen-
discusses the social responsibilities fulfilled by the AGC Group,
sive understanding of the various initiatives it promotes as a busi-
based on the core themes cited in ISO 26000.
ness that contributes to sustainable society.
An Array of Tools Helps the Group Deepen its Communication with Stakeholders
Financial Information Tools
Non-Financial Information Tools
For Understanding
AGC Group’s Growth Strategy
Hajime Sawabe
Director (Outside)
[Representative Director,
Chairman, TDK Corporation]
Kunihiro Matsuo
Director (Outside)
[Attorney At Law,
Kunihiro Matsuo Law Office]
Financial Review
(PDF file only)
Masahiro Sakane
Director (Outside)
[Chairman of the Board,
Komatsu Ltd.]
CSR Website
www.agc.com/english/csr/
CSR Information
Supplement
(PDF file only)
Executive Officers Corporate
Repor ts the AGC Group’ s
business outline and financial
AGC Report 2012
(This report)
information including a con-
President & CEO
solidated financial statement
Kazuhiko Ishimura
Marehisa Ishiko
Regional President of North
America, Glass Company
Shinichi Kawakami
AGC Group
GM of Human Resources &
Administration Office
Introducing social responsi-
Extracted and compiled based
Corporate Auditors
bilities shouldered by the
on policies and promotional
Shinji Miyaji
measures related to non-financial
data and CSR activities
Takashi Terashima
Group Leader of Corporate
Planning Group, Office of the
President
CEO
Yoshiaki Tamura
President of Electronics
Takuya Shimamura
AGC Group Website
President of Chemicals
Kimikazu Ichikawa
(Outside)
Izumi Tamai (Outside)
Shigeru Hikuma
Kenji Haga (Outside)
Senior Executive
Vice Presidents
For Comprehensive Information
Company;
Yuji Nishimi
Overall business management
(AGC Group improvement
activities, electronics business
and business development)
Akio Endo
Scope of Report
President of Glass Company
Reporting Period
Executive Vice
Fiscal 2011 (Jan.–Dec. 2011)
GM of Display General Div.,
Electronics Company
Jean-François Heris
Regional President of Europe,
Glass Company; President &
CEO of AGC Glass Europe
Takashi Fujino
Overall business management
(Finance); GM of Office of the
President
Presidents
Some information includes content from both fiscal 2010 and 2012.
Masayuki Kamiya
Katsuhisa Kato
Organizations Covered in the Report
Overall business management
Chief Representative of AGC
Group for China
nies) in and outside Japan
General Division
Executive Officers
Primary Notation and Report Targets Used in the Report
Kei Yonamoto
Tadayuki Oi
Brazil Global Project
The AGC Group
Team Leader
The AGC Group (Japan)
Senior Executive
Officers
Same as “Organizations Covered in the
GM of Production Technology
Report” mentioned above
Center, Technology General
Division
Group companies in Japan including
Asahi Glass Co. Ltd.
Yasumasa Nakao
AGC Asahi Glass Co. Ltd. (on an
Vice President, Technology,
Asahi Glass/the Company
Shukichi Umemoto
Glass Company
unconsolidated basis)
GM of Finance & Control Office
The AGC Group (Asia)
Group companies in Asia excluding the
AGC Group (Japan)
http://www.agc-group.com/en/
Company
Regional President of
Communicating information about the AGC Group more
Japan/Asia Pacific, Glass
Tetsuo Tatsuno
widely, timely, and in more detail
Vice President, Planning and
Coordination, Glass Company
Company
Eisuke Yanagisawa
GM of Legal
Yoshinori Kobayashi
GM of Electronics General Div.,
Electronics Company
Kazuyoshi Watanabe
Hiroshi Akagi
Non-Financial Information Guidelines
GM of Technology
GM of Business Management
General Div., Chemicals
• ISO 26000: 2010 Guidance on social responsibility
Electronics Company
Development General Div.,
Company
• Sustainable Reporting Guidelines Version 3.1 (G3.1), Global
Yoshinori Hirai
Tokio Matsuo
Reporting Initiative (GRI)
GM of Business Development
GM of CSR Office
Office
President of AGC Ceramics
Co., Ltd.
Date of Publication
Tomoya Takigawa
GM of Research Center,
June 2012
Kihachiro Okamoto
Vice President, Automotive,
Glass Company
Shigekuni Inoue
GM of Electronic Glass General
Technology General Division
Last date of publication: AGC Report: June 2011 CSR Report: July 2011
Div., Electronics Company
Takashi Shimbo
President Director of AGC
Regarding Future Assumptions, Forecasts and Plans
(China) Holdings Co., Ltd.
Future perspectives described in this report are based on the latest
information available to the AGC Group at the time of editing this
report. Nevertheless, please note that results and consequences may
vary with fluctuations in the business environment.
As of March 29, 2012
Asahi Glass and its 179 consolidated subsidiaries (Group compa-
(Technology); GM of Technology
Akinobu Shimao
the Environment
• Environmental Reporting Guidelines (2012), Japanese Ministry of
1
67
AGC Report 2012
AGC Report 2012
AKT_1206-0362_ 旭硝子 CSR 英文表紙 _ ウラ _12/06/20 SK
1
3
4
5
7
9
13
15
Reporting and Editorial Policy/Contents
History of AGC Group
Overview of the AGC Group
Our Vision and Shared Values
Financial and Non-Financial Highlights
–
2002
CEO Message
We Will Continue to Develop the AGC Group
2010 • New medium-term management plan
with the Goal to be an Outstanding Global
“ -2012”
started.
Toward
Enterprise that is Highly Profitable,
Global
Fast-Growing and Contributes to the
Management
Realization of a Sustainable Society
anniversary celebrated.
2007 • Group brand unified as “AGC.”
• Asahi Glass Company’s 100th
2008 • Management policy introduced.
CEO Interview
Concerning the Medium-Term Management
Plan
“ -2012”
2004 • “JIKKO” management policy introduced.
2002 • Glaverbel made into a wholly owned subsidiary.
• AGC Group Vision formulated.
• Global In-house Company System introduced.
Dialogue
Conversation with the Winners of the Blue Planet Prize
23
25
29
33
37
38
Products & Technologies of AGC Group
Chapter 1
2011 • “Dragontrail™” glass for chemical
Business Overview
strengthening launched. (photo )
6
• Development of 0.1-millimeter-thick
“ultra-thin glass”—the world’s
Glass Operations
thinnest—using the float method.
(photo )
7
Electronics Operations
• “UV Verre Premium™” glass for
Chemicals Operations
automotive door windows
introduced.
Ceramics/Other Operations
2010 • Sales of “FONTEX™”, a
The AGC Group and Clean Energy
commercial plastic optical fiber
enabling the world’s highest
transmission speed, launched.
6
7
2006 • “Fluon® ETFE Film” selected for the main stadium and
the venue for aquatics games at a global sport event in
Beijing.
Looking to the Future of the Global Environment
Aiming to Create a Sustainable Society
1992 • 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.
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.
1981 • Belgian glassmaker Glaverbel
S.A. acquired. (photo )
1
1950
–
2001
Feature 1
Contributing to Sustainable Development with
Era of
Growth and
Expansion
The Brazil Project
19 Feature 2
1956 • Manufacture of automotive glass
begun. (photo )
2
Driving the Evolution of Smartphones and Tablet PCs
• The Indo-Asahi Glass Co., Ltd.
established in India.
The Future is Now with
1954 • Asahi Glass entered the Cathode
Ray Tube (CRT) glass bulb
business. (photo )
3
™
1907
–
1949
The Early
Years
1933 • Caustic soda production using
lime process begun.
1925 • Shoko Glass Co., Ltd. established
in China. (photo )
4
1916 • Production of refractories begun
at the Amagasaki Plant.
1907 • Asahi Glass Company founded in
Amagasaki, Hyogo Prefecture.
(photo )
5
1
41
43
2
47
52
57
59
62
3
63
65
67
4
68
5
39 Chapter 2
1980 • AZEC System of caustic soda manufacturing using
ion-exchange membrane developed.
Responsibilities to
Our Stakeholders
1975 • Production of “Asahi Guard™” fluorinated water and oil
repellents and “Aflon™COP” fluorinated resins begun.
• Ion-exchange membrane method for manufacturing
caustic soda developed.
Targets and Results
1966 • Production of float glass begun.
(photo )
8
Organizational Governance
Human Rights and Labor Practices
1961 • Asahi Glass diversified into
The Environment
organic chemicals, propylene
oxide and propylene glycol
production started.
Fair Operating Practices and Consumer Issues
8
Community Involvement and Development
1954 • Production of double-glazing units (Pairglass™) begun.
CSR Web Site Access
1938 • Production of tempered glass and laminated glass begun.
Research & Development
1928 • Production of ordinary sheet glass using the Fourcault
Global Network
process begun.
1917 • First production of soda ash using the ammonium
Board of Directors, Corporate Auditors and
Executive Officers
method in Japan.
Milestones
1909 • Production of Belgian-type
hand-blown sheet glass (photo )
9
• The first sheet glass successfully
manufactured in Japan, begun.
9
AGC Report 2012 2
AGC Report 2012 68
A
G
C
R
e
p
o
r
t
2
0
1
2
AGC Report 2012
AGC Report 2012
URL: http://www.agc-group.com/en/
URL: http://www.agc-group.com/en/
1-5-1, Marunouchi, Chiyoda-ku, Tokyo 100-8405, JAPAN
1-5-1, Marunouchi, Chiyoda-ku, Tokyo 100-8405, JAPAN
Corporate Communications
& Investor Relations Office
Tel: +81-3-3218-5603 Fax: +81-3-3218-5390
E-mail: info.ad@agc.com
Corporate Communications
& Investor Relations Office
Tel: +81-3-3218-5603 Fax: +81-3-3218-5390
E-mail: info.ad@agc.com
CSR Office
Tel: +81-3-3218-5282 Fax: +81-3-3218-7801
E-mail: csr-info@agc.com
CSR Office
Tel: +81-3-3218-5282 Fax: +81-3-3218-7801
E-mail: csr-info@agc.com
Published in June 2012
(Next report scheduled to be published in June 2013)
Published in June 2012
(Next report scheduled to be published in June 2013)
Printed on paper made with wood
Printed on paper made with wood
from forest thinning. “Morino
from forest thinning. “Morino
Chonai-Kai” (Forest Neighborhood
Chonai-Kai” (Forest Neighborhood
Association)—Supporting sound
Association)—Supporting sound
forest management.
forest management.
All rights reserved. © 2012, Asahi Glass Co., Ltd.
All rights reserved. © 2012, Asahi Glass Co., Ltd.
AKT_1206-0362_ 旭硝子 CSR 英文表紙 _ おもて _12/06/20 SK