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5
AGC Report 2015
Main Communication Tools Used to Reach Each of Our Stakeholders
Financial Information
The AGC Group’s
Corporate Vision and
Business Activities
Non-Financial Information
(Sustainability Reporting)
For Comprehensive
Information
Financial Review
(PDF file only)
Reports the AGC Group’s
business outline and
financial information
including consolidated
financial statements
AGC Report 2015
(This report)
For customers
(including general consumers)
CSR Website
www.agc.com/english/csr/
Provides a comprehensive report
on the AGC Group’s efforts to
fulfill its social responsibilities.
Based on the “core” of G41
1 The 4th edition of the GRI
Sustainability Reporting Guidelines
CSR Information
Supplement
(PDF file only)
Reports on the AGC
Group’s non-financial
data and its various CSR
policies and organizations
for promoting
CSR-related activities
AGC Website
www.agc-group.com/
Provides information
about the AGC Group
more widely, timely and
in more detail
For shareholders and investors
For CSR-related experts (ESG research agencies, etc.) and
other stakeholders with an interest in CSR
Scope
(cid:127) Reporting Period: Fiscal 2014 (Jan.–Dec. 2014)
(cid:127) Primary Notation and Report Targets Used in the Report
Some information includes content from both fiscal 2013 and 2015
The AGC Group
(cid:127) Organizations Covered in the Report: Asahi Glass and its 194
Same as “Organizations Covered in the Report” mentioned at left.
consolidated subsidiaries (Group companies in and outside Japan)
The AGC Group (Japan)
Group companies in Japan including Asahi Glass Co., Ltd.
Asahi Glass/the Company
Asahi Glass Co. Ltd. (on an unconsolidated basis)
Related Information
WEB
Articles with this mark have related information on the AGC website (www.agc-group.com/).
Date of Publication
May 2015 (Last date of publication: May 2014)
Regarding Future Assumption, 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.
www.agc.com
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
Printed on paper made with wood
from forest thinning.“Morino Chonai
Kai” (Forest Neighborhood
Association) —Supporting sound
forest management.
All rights reserved. Unauthorized reproduction of this report is a violation of applicable laws.
Introduction
Since 1907
For more than a century, the AGC Group has been
pursuing its mission and meeting its responsibilities
as a world-leading glass manufacturer
Glass is indispensable for our daily lives and the evolution and growth of
industrialized societies. The Asahi Glass Company was established in 1907
for the purpose of producing flat glass domestically in Japan. Since the
company successfully mass produced Japan’s first flat glass in 1909, the
AGC Group has built on its history spanning over 100 years and acquired
the world’s leading market shares for various products, including
architectural glass, processed automotive glass, and glass substrates for
liquid-crystal displays. Today, the Group continues to pursue its mission and
responsibilities as a world-leading glass manufacturer, aiding society’s
progress and contributing to people’s quality of life around the world by
providing a stable supply of high-quality glass and chemical materials.
History of the AGC Group
1907
1909
The Asahi Glass Company founded in
Amagasaki, Hyogo Prefecture
The first sheet glass successfully manufactured
in Japan using a Belgian-type hand-blowing
method
1917
1925
1956
First production of soda ash using the
ammonium method at Kitakyushu Plant
Shoko Glass Co., Ltd. established in China
The Indo-Asahi Glass Co., Ltd. established in India
First production of automotive glass begun
Glass bulbs for television picture tubes
manufactured
1963
1964
1965
1966
1972
1975
1981
Asahi Glass Thailand, Co. established in Thailand
Production of caustic soda and chlorine using
the electrolysis method begun
Research center constructed in Yokohama, Japan
Manufacture of sheet glass using the float
method begun
PT Asahimas Flat Glass Tbk established in
Indonesia
Production of “AsahiGuard™” fluorinated water
and oil repellants begun
Belgian glassmaker Glaverbel S.A. and Dutch
company MaasGlas B.V. acquired
1985
1991
1992
1995
1996
2000
2002
2006
2007
2010
2011
AP Technoglass Co. established in the United
States
The Blue Planet Prize created to recognize
contributions to the environment by individuals
and groups
Production of glass substrates for
thin-film-transistor liquid-crystal displays (TFT-
LCD) begun
U.S. glassmaker AFG Industries, Inc. acquired
Production of automotive glass in China begun
Commercial production of PD200, glass
substrates for plasma display panels begun
Asahi Glass Fine Techno Taiwan Co., Ltd.
established
The AGC Group Vision “Look Beyond”
formulated
The Global In-house Company System
introduced
Corporate governance reforms implemented
AGC Glass Hungary Ltd. established
Group brand unified as “AGC”
Float glass plant operations in Russia begun
“UV Verre Premium™” glass for automotive
door windows launched
AGC Display Glass (Kunshan) Co., Ltd.
established to produce TFT-LCD glass
substrates in China
“Dragontrail™” specialty glass for chemical
strengthening launched
2012
2013
2014
2015
Brand licensing rights for the 2014 FIFA World
Cup™ acquired
Float glass plant operations in Brazil begun
PVC Company of Vietnam acquired
Technical center for the chemicals business
established in Shanghai, China
“AGC plus” management policy implemented
Towards the Future
Going beyond the past 100 years, creating new value for the future
Every member of the AGC Group is striving to create
new value for generations to come.
With this aim, the AGC Group is looking to go past
its fields of technical expertise built up over its history,
extending beyond industrial boundaries, national borders,
and its own organizational frameworks employed in the past.
1
AGC Report 2015
AGC Report 2015 2
Introduction
Since 1907
For more than a century, the AGC Group has been
pursuing its mission and meeting its responsibilities
as a world-leading glass manufacturer
Glass is indispensable for our daily lives and the evolution and growth of
industrialized societies. The Asahi Glass Company was established in 1907
for the purpose of producing flat glass domestically in Japan. Since the
company successfully mass produced Japan’s first flat glass in 1909, the
AGC Group has built on its history spanning over 100 years and acquired
the world’s leading market shares for various products, including
architectural glass, processed automotive glass, and glass substrates for
liquid-crystal displays. Today, the Group continues to pursue its mission and
responsibilities as a world-leading glass manufacturer, aiding society’s
progress and contributing to people’s quality of life around the world by
providing a stable supply of high-quality glass and chemical materials.
History of the AGC Group
1907
The Asahi Glass Company founded in
Amagasaki, Hyogo Prefecture
1909
The first sheet glass successfully manufactured
in Japan using a Belgian-type hand-blowing
method
1917
First production of soda ash using the
ammonium method at Kitakyushu Plant
1925
1956
Shoko Glass Co., Ltd. established in China
The Indo-Asahi Glass Co., Ltd. established in India
First production of automotive glass begun
Glass bulbs for television picture tubes
manufactured
1963
1964
1965
1966
Asahi Glass Thailand, Co. established in Thailand
Production of caustic soda and chlorine using
the electrolysis method begun
Research center constructed in Yokohama, Japan
Manufacture of sheet glass using the float
1972
PT Asahimas Flat Glass Tbk established in
method begun
Indonesia
1975
Production of “AsahiGuard™” fluorinated water
and oil repellants begun
1981
Belgian glassmaker Glaverbel S.A. and Dutch
company MaasGlas B.V. acquired
States
and groups
LCD) begun
1985
AP Technoglass Co. established in the United
1991
The Blue Planet Prize created to recognize
contributions to the environment by individuals
Production of glass substrates for
thin-film-transistor liquid-crystal displays (TFT-
1992
1995
1996
U.S. glassmaker AFG Industries, Inc. acquired
Production of automotive glass in China begun
Commercial production of PD200, glass
substrates for plasma display panels begun
2000
Asahi Glass Fine Techno Taiwan Co., Ltd.
2002
The AGC Group Vision “Look Beyond”
The Global In-house Company System
established
formulated
introduced
2006
2007
2010
Corporate governance reforms implemented
AGC Glass Hungary Ltd. established
Group brand unified as “AGC”
Float glass plant operations in Russia begun
“UV Verre Premium™” glass for automotive
door windows launched
2011
AGC Display Glass (Kunshan) Co., Ltd.
established to produce TFT-LCD glass
substrates in China
“Dragontrail™” specialty glass for chemical
strengthening launched
2012
Brand licensing rights for the 2014 FIFA World
Cup™ acquired
2013
2014
Float glass plant operations in Brazil begun
PVC Company of Vietnam acquired
Technical center for the chemicals business
established in Shanghai, China
2015
“AGC plus” management policy implemented
Towards the Future
Going beyond the past 100 years, creating new value for the future
Every member of the AGC Group is striving to create
new value for generations to come.
With this aim, the AGC Group is looking to go past
its fields of technical expertise built up over its history,
extending beyond industrial boundaries, national borders,
and its own organizational frameworks employed in the past.
1
AGC Report 2015
AGC Report 2015 2
New products
New technologies
New businesses
New value creation
The AGC Group’s New Challenges
Going beyond technological
boundaries to create new value
In the past, the AGC Group’s technologies
tended to evolve independently as it worked
to apply glass technologies to develop glass
products, chemical technologies to develop
chemical materials and ceramic technologies
to develop ceramic products. Now, however,
the Group is striving to combine these technol-
ogies in order to develop products with higher
added value and to open up possibilities for
the creation of new markets.
p.39
Ceramics processing
technologies
Nanomaterial
technologies
Fluorine
chemistry
Inorganic
material chemistry
Electrochemistry
Polymer materials
Ceramics technologies
Chemical technologies
Glass
material design
Glass forming
technologies
Glass
manufacturing
technologies
Glass
integration
technologies
Coating
technologies
Simulation technologies
Glass technologies
Engineering technologies
The AGC Group’s Competitive Advantages
Analysis technologies
Process engineering
Sensing technologies
Production technologies
Fundamental technologies
Diverse technologies
Among the AGC Group’s key competitive advan-
tages are its glass, chemical and ceramic material
technologies, along with a wide spectrum of pro-
duction technologies, including analysis, simula-
tion, sensing, processing and engineering tech-
nologies. Because very few companies in the
world have such highly advanced technologies
specifically in the fields of glass, chemicals and
ceramics, the AGC Group stands apart from
other glass manufacturers.
BEYOND
TECHNOLOGICAL
BOUNDARIES
Glass, chemicals and ceramics—
Creating new value by combining diverse technologies
accumulated and refined over many years
The AGC Group possesses a wide spectrum of technologies
accumulated over its history and carefully crafted by pioneering employees in the past.
Based on material technologies and manufacturing technologies used to commercialize and
mass produce those materials, the Group has developed superior products ahead of
the times in each of its main technical fields of glass, chemicals, and ceramics,
including architectural glass, automotive glass, display device glass and fluoropolymer resin.
The AGC Group has also established a production network capable of stably supplying its high-quality products,
and has acquired strong market shares globally. The diverse technologies underpinning these products are
a source of the Group’s competitive advantages and key assets for ensuring a bright future ahead.
Aiming to create new value for a new era, the AGC Group is integrating and combining its diverse technologies.
In this manner, the Group is searching for innovative new combinations of material and
production technologies as it strives to create all-new value.
3
AGC Report 2015
AGC Report 2015 4
The AGC Group’s New Challenges
Going beyond technological
boundaries to create new value
In the past, the AGC Group’s technologies
tended to evolve independently as it worked
to apply glass technologies to develop glass
products, chemical technologies to develop
chemical materials and ceramic technologies
to develop ceramic products. Now, however,
the Group is striving to combine these technol-
ogies in order to develop products with higher
added value and to open up possibilities for
the creation of new markets.
p.39
New products
New technologies
New businesses
New value creation
Ceramics processing
technologies
Nanomaterial
technologies
Fluorine
chemistry
Inorganic
material chemistry
Electrochemistry
Polymer materials
Ceramics technologies
Chemical technologies
Glass
material design
Glass forming
technologies
Glass
manufacturing
technologies
Glass
integration
technologies
Coating
technologies
Simulation technologies
Glass technologies
Engineering technologies
The AGC Group’s Competitive Advantages
Diverse technologies
Among the AGC Group’s key competitive advan-
tages are its glass, chemical and ceramic material
technologies, along with a wide spectrum of pro-
duction technologies, including analysis, simula-
tion, sensing, processing and engineering tech-
nologies. Because very few companies in the
world have such highly advanced technologies
specifically in the fields of glass, chemicals and
ceramics, the AGC Group stands apart from
other glass manufacturers.
Analysis technologies
Process engineering
Sensing technologies
Production technologies
Fundamental technologies
BEYOND
TECHNOLOGICAL
BOUNDARIES
Glass, chemicals and ceramics—
Creating new value by combining diverse technologies
accumulated and refined over many years
The AGC Group possesses a wide spectrum of technologies
accumulated over its history and carefully crafted by pioneering employees in the past.
Based on material technologies and manufacturing technologies used to commercialize and
mass produce those materials, the Group has developed superior products ahead of
the times in each of its main technical fields of glass, chemicals, and ceramics,
including architectural glass, automotive glass, display device glass and fluoropolymer resin.
The AGC Group has also established a production network capable of stably supplying its high-quality products,
and has acquired strong market shares globally. The diverse technologies underpinning these products are
a source of the Group’s competitive advantages and key assets for ensuring a bright future ahead.
Aiming to create new value for a new era, the AGC Group is integrating and combining its diverse technologies.
In this manner, the Group is searching for innovative new combinations of material and
production technologies as it strives to create all-new value.
3
AGC Report 2015
AGC Report 2015 4
Next-generation
mobility
Next-generation
communication
Security and safety
Heat management
Life sciences
New energy and
new green
Realizing smart communities
The AGC Group’s New Challenges
Going beyond industrial
boundaries to create new value
The worldwide trend to make things “smarter” is
quickening the pace of collaboration between
different industries. Accordingly, the AGC Group
is exploring ways to expand the customer base
of existing products into different industries, as
exemplified by the technologies and products
originally designed for specific customers. Also,
the Group joins consortiums involved in creating
smart communities and products. In this way, the
Group is taking on the challenge of value cre-
ation by going beyond the boundaries of specific
industries.
The AGC Group’s Competitive Advantages
Diversity of customer relationships
Among the AGC Group’s key competitive advan-
tages are its relationships with customers from a
wide range of industries, built up through its four
main businesses of glass, electronics, chemicals
and ceramics. The Group recognizes that its part-
nerships with leading global players in various
industries are vital assets for pursuing its growth
strategies going forward.
Agrichemicals
Pharmaceuticals
Life sciences
Electronics
Optical equipment
Displays
Automobiles
Energy
Railway
Buildings
Aircraft
Civil engineering
Residences
Customers’
industries
BEYOND
INDUSTRIAL
BOUNDARIES
Construction, automotive, electronics, ICT and life sciences—
Creating “smarter” communities and livelihoods
beyond industrial boundaries
Through business activities in its four specialty areas of glass, electronics, chemicals and ceramics,
the AGC Group is seeking to establish and deepen a diverse business network with customers
from a wide range of industries, spanning from construction-related industries (e.g. civil engineering
and the construction of buildings and residences) to transport machinery industries
(e.g. automotive, aircraft and railway), as well as information- and electronics-related industries
(e.g. displays and electronic devices), life science-related industries (e.g. pharmaceuticals and agrichemicals),
and energy-related industries (e.g. solar power generation and fuel cells).
The AGC Group recognizes that its relationships with members from a broad range of industries
are vital assets for its growth going forward.
In today’s world, we need to create new value that goes beyond the boundaries of specific industries.
One way to accomplish this is to make things “smarter.” Creating smart communities, smart mobility,
smart household electronic devices and other items through collaboration between different types of industries
will accelerate the creation of new value. The AGC Group will help realize smart communities by promoting
such collaboration through the connections it has established in a broad range of industries.
5
AGC Report 2015
AGC Report 2015 6
Next-generation
mobility
Next-generation
communication
Security and safety
Heat management
Life sciences
New energy and
new green
The AGC Group’s New Challenges
Going beyond industrial
boundaries to create new value
The worldwide trend to make things “smarter” is
quickening the pace of collaboration between
different industries. Accordingly, the AGC Group
is exploring ways to expand the customer base
of existing products into different industries, as
exemplified by the technologies and products
originally designed for specific customers. Also,
the Group joins consortiums involved in creating
smart communities and products. In this way, the
Group is taking on the challenge of value cre-
ation by going beyond the boundaries of specific
industries.
Realizing smart communities
Agrichemicals
Pharmaceuticals
Life sciences
Electronics
Optical equipment
Displays
Automobiles
Energy
The AGC Group’s Competitive Advantages
Diversity of customer relationships
Among the AGC Group’s key competitive advan-
tages are its relationships with customers from a
wide range of industries, built up through its four
main businesses of glass, electronics, chemicals
and ceramics. The Group recognizes that its part-
nerships with leading global players in various
industries are vital assets for pursuing its growth
strategies going forward.
Railway
Buildings
Aircraft
Civil engineering
Residences
Customers’
industries
BEYOND
INDUSTRIAL
BOUNDARIES
Construction, automotive, electronics, ICT and life sciences—
Creating “smarter” communities and livelihoods
beyond industrial boundaries
Through business activities in its four specialty areas of glass, electronics, chemicals and ceramics,
the AGC Group is seeking to establish and deepen a diverse business network with customers
from a wide range of industries, spanning from construction-related industries (e.g. civil engineering
and the construction of buildings and residences) to transport machinery industries
(e.g. automotive, aircraft and railway), as well as information- and electronics-related industries
(e.g. displays and electronic devices), life science-related industries (e.g. pharmaceuticals and agrichemicals),
and energy-related industries (e.g. solar power generation and fuel cells).
The AGC Group recognizes that its relationships with members from a broad range of industries
are vital assets for its growth going forward.
In today’s world, we need to create new value that goes beyond the boundaries of specific industries.
One way to accomplish this is to make things “smarter.” Creating smart communities, smart mobility,
smart household electronic devices and other items through collaboration between different types of industries
will accelerate the creation of new value. The AGC Group will help realize smart communities by promoting
such collaboration through the connections it has established in a broad range of industries.
5
AGC Report 2015
AGC Report 2015 6
Europe
Middle East
Saudi Arabia
Japan and Asia
Southeast Asia
Vietnam
North America
Central and
South America
Mexico
The AGC Group’s Competitive Advantages
Geographical diversity
Against the backdrop of economic globalization,
one of the AGC Group’s key competitive advan-
tages is its far-reaching global operations based
in the three regions of Japan and Asia, Europe
and the Americas—further extending into more
than 30 countries and regions to date. By lever-
aging operations that reach into the world’s
major markets, a stream of new business oppor-
tunities can be realized
The AGC Group’s New Challenges
Expanding beyond existing
business areas
In fast-growing regions, including Southeast Asia
and the Central and South Americas, the AGC
Group plans to carry out capital investment and
bolster its production and supply networks in line
with growing demand, especially in its glass and
chemicals businesses. The Group also intends to
create business opportunities in regions where it
has not conducted business before, such as the
Middle East
BEYOND
NATIONAL
BORDERS
Expanding further while deepening regional ties—
Allowing the evolution of a truly global business by providing essential value
tailored to the needs of each country and region.
The AGC Group’s business has expanded globally according to the unique characteristics of its operations
based in the three regions of Japan and Asia, Europe, and the Americas. For example,
in its architectural glass and automotive glass businesses, the Group has established product development
and production networks in each of these three regions to supply products to markets around the world,
allowing it to expand its businesses in line with market demand.
Likewise, in its electronics business, which is deeply rooted in customers’ industries in East Asia,
the Group has integrated its development, production and supply network in Japan, South Korea,
China and Taiwan, and worked closely with customers to expand the business. In the chemicals business,
which handles caustic soda, raw materials for vinyl chloride polymers, and other basic materials essential
for the development of industry and upkeep of social infrastructure, the Group has strengthened
its production and supply network in Southeast Asia, where infrastructure is being constructed at a brisk pace.
The AGC Group recognizes that these product development, production and supply networks,
tailored to fit the unique characteristics of each of its businesses, are key assets for its growth in the future.
With the goal of creating value for a new era, the AGC Group is working to expand operations
even more deeply rooted in local communities while exploring opportunities
for developing new businesses in the Middle East and other promising regions.
7
AGC Report 2015
AGC Report 2015 8
The AGC Group’s Competitive Advantages
Geographical diversity
Against the backdrop of economic globalization,
one of the AGC Group’s key competitive advan-
tages is its far-reaching global operations based
in the three regions of Japan and Asia, Europe
and the Americas—further extending into more
than 30 countries and regions to date. By lever-
aging operations that reach into the world’s
major markets, a stream of new business oppor-
tunities can be realized
Europe
Middle East
Saudi Arabia
Japan and Asia
Southeast Asia
Vietnam
North America
Central and
South America
Mexico
The AGC Group’s New Challenges
Expanding beyond existing
business areas
In fast-growing regions, including Southeast Asia
and the Central and South Americas, the AGC
Group plans to carry out capital investment and
bolster its production and supply networks in line
with growing demand, especially in its glass and
chemicals businesses. The Group also intends to
create business opportunities in regions where it
has not conducted business before, such as the
Middle East
BEYOND
NATIONAL
BORDERS
Expanding further while deepening regional ties—
Allowing the evolution of a truly global business by providing essential value
tailored to the needs of each country and region.
The AGC Group’s business has expanded globally according to the unique characteristics of its operations
based in the three regions of Japan and Asia, Europe, and the Americas. For example,
in its architectural glass and automotive glass businesses, the Group has established product development
and production networks in each of these three regions to supply products to markets around the world,
allowing it to expand its businesses in line with market demand.
Likewise, in its electronics business, which is deeply rooted in customers’ industries in East Asia,
the Group has integrated its development, production and supply network in Japan, South Korea,
China and Taiwan, and worked closely with customers to expand the business. In the chemicals business,
which handles caustic soda, raw materials for vinyl chloride polymers, and other basic materials essential
for the development of industry and upkeep of social infrastructure, the Group has strengthened
its production and supply network in Southeast Asia, where infrastructure is being constructed at a brisk pace.
The AGC Group recognizes that these product development, production and supply networks,
tailored to fit the unique characteristics of each of its businesses, are key assets for its growth in the future.
With the goal of creating value for a new era, the AGC Group is working to expand operations
even more deeply rooted in local communities while exploring opportunities
for developing new businesses in the Middle East and other promising regions.
7
AGC Report 2015
AGC Report 2015 8
AGC Group Vision
Our Mission—
We, the AGC Group, “Look Beyond” to make the world a brighter place.
We will continuously:
Anticipate and envision the future,
A Have perspectives beyond our own fields of expertise,
A Pursue innovations, not becoming complacent with
the status quo.
Our Mission
Our Shared values
We will continue to create value worldwide, demonstrating the vast potential of the Group’s
entire organization.
Our spirit
Our Shared Values
Innovation & Operational Excellence
(cid:127)We will seek innovations in technology, product and services beyond conventional concepts and frameworks.
(cid:127)We will create value directed at our current and potential customer needs, accounting for changes in the business environment and,
social and market evolution.
(cid:127)We will continuously improve all aspects of our operations striving to achieve benchmark performance.
Diversity
Environment
Integrity
(cid:127)We will respect individual diversity of
varied capabilities and personalities.
(cid:127)We will respect cultural diversity of
race, ethnicity, religion, language and
nationality.
(cid:127)We will respect different perspectives
and opinions at all times.
(cid:127)We will contribute to creation of a sus-
tainable society in harmony with nature
as a successful and responsible global
citizen.
(cid:127)We will strive to ensure and further im-
prove occupational health and safety
in our working environment.
(cid:127)We will build open and fair relationships
with all of our stakeholders based on
the highest ethical standards.
(cid:127)We will comply with all applicable laws
and regulations.
(cid:127)We will fulfill our contractual and legal
responsibilities to achieve customer
satisfaction and trust.
Our Spirit
“Never take the easy way out, but confront difficulties.”
The founding spirit of Toshiya Iwasaki, who established Asahi Glass Company in September 1907.
9
AGC Report 2015
AGC Report 2015
Table of Contents
Introduction
Toward the Future
Beyond Technological Boundaries
Beyond Industrial Boundaries
Beyond National Borders
AGC Group Vision
Message from the President and CEO
Special Feature:
Interview with the President and CEO
The New Management Policy
AGC plus
Financial and Non-Financial Highlights
Overview of the AGC Group
Glass
Electronics
Chemicals
Ceramics/Other
Applied Glass Materials Business
New Business Creation at the AGC Group
Corporate Governance
CSR Management
Risk Management
Compliance
Intellectual Property
Board of Directors,
Corporate Auditors, and Executive Officers
1
2
3
5
7
9
11
13
19
21
23
27
31
33
37
39
45
48
49
49
50
51
From the Editors
Published annually, the AGC Report covers the AGC Group’s
corporate stance and business activities. In this 2015 edition,
the AGC Group has reported on the new management policy
and explained the Group’s growth strategies in
each of its businesses along with its new business develop-
ment plans. For details of financial and non-financial results,
the AGC Group invites readers to visit our website.
AGC Report 2015 10
AGC Group Vision
Our Mission—
We will continuously:
We, the AGC Group, “Look Beyond” to make the world a brighter place.
Anticipate and envision the future,
A Have perspectives beyond our own fields of expertise,
A Pursue innovations, not becoming complacent with
the status quo.
Our Mission
Our Shared values
We will continue to create value worldwide, demonstrating the vast potential of the Group’s
Our spirit
entire organization.
Our Shared Values
Innovation & Operational Excellence
(cid:127)We will seek innovations in technology, product and services beyond conventional concepts and frameworks.
(cid:127)We will create value directed at our current and potential customer needs, accounting for changes in the business environment and,
social and market evolution.
(cid:127)We will continuously improve all aspects of our operations striving to achieve benchmark performance.
Diversity
Environment
Integrity
(cid:127)We will respect individual diversity of
(cid:127)We will contribute to creation of a sus-
(cid:127)We will build open and fair relationships
varied capabilities and personalities.
(cid:127)We will respect cultural diversity of
race, ethnicity, religion, language and
citizen.
tainable society in harmony with nature
as a successful and responsible global
with all of our stakeholders based on
the highest ethical standards.
nationality.
(cid:127)We will respect different perspectives
and opinions at all times.
(cid:127)We will strive to ensure and further im-
prove occupational health and safety
in our working environment.
(cid:127)We will comply with all applicable laws
and regulations.
(cid:127)We will fulfill our contractual and legal
responsibilities to achieve customer
satisfaction and trust.
Our Spirit
“Never take the easy way out, but confront difficulties.”
The founding spirit of Toshiya Iwasaki, who established Asahi Glass Company in September 1907.
9
AGC Report 2015
AGC Report 2015
Table of Contents
Introduction
Toward the Future
Beyond Technological Boundaries
Beyond Industrial Boundaries
Beyond National Borders
AGC Group Vision
Message from the President and CEO
Special Feature:
Interview with the President and CEO
The New Management Policy
AGC plus
Financial and Non-Financial Highlights
Overview of the AGC Group
Glass
Electronics
Applied Glass Materials Business
Chemicals
Ceramics/Other
New Business Creation at the AGC Group
Corporate Governance
CSR Management
Risk Management
Compliance
Intellectual Property
Board of Directors,
Corporate Auditors, and Executive Officers
1
2
3
5
7
9
11
13
19
21
23
27
31
33
37
39
45
48
49
49
50
51
From the Editors
Published annually, the AGC Report covers the AGC Group’s
corporate stance and business activities. In this 2015 edition,
the AGC Group has reported on the new management policy
and explained the Group’s growth strategies in
each of its businesses along with its new business develop-
ment plans. For details of financial and non-financial results,
the AGC Group invites readers to visit our website.
AGC Report 2015 10
Message from the President and CEO
Based on its diversity, the AGC Group strives as a united team
to create value that no other company can offer.
Ending December 31, 2015, fiscal 2015 is a critical year for
including expertise and technologies in diverse fields such
the AGC Group, as it is facing a real test of its ability to end
as glass, chemicals, and ceramics, and a global network
four consecutive years of declining operating profit. In this
covering a wide range of industries, from building materials
context, I was appointed as President and Chief Executive
and automobiles to electronics. Our employees all over
Officer on January 1, 2015, and given the responsibility of
the world, with their experience and profound understand-
leading over 50,000 members of the AGC Group world-
ing of these technologies and markets, are another source
wide. Recognizing the importance of my new role, I
of the group’s strengths.
renewed my determination to bring the Group back on the
By making the most of the benefits that come with this
growth track by harnessing the skills of all of its members.
diversity, we are working to deliver solutions to a broad
To achieve this, I intend to return to the basics of our
spectrum of industries involved in building materials, vehi-
business, work to enhance the Group’s competitive advan-
cles, displays, electronic devices, and social infrastructure.
tages, and inspire its members to take on the challenge of
In this way, we are bringing innovations to society that only
creating value that no other company can offer.
a glass and material manufacturer can offer. To realize this
mission, the AGC Group is striving to create new value by
The AGC Group has built up various competitive advan-
acting on changing trends in society through the lens of
tages through business activities spanning over a century,
the market, and seeking out new opportunities for helping
The AGC Group’s new management policy
The AGC Group adds a “plus” by:
(cid:127)Providing safety, security and comfort or to society;
(cid:127)Creating new value and functions for customers and
business partners and building trust with them;
(cid:127)Enhancing job satisfaction among employees; and
(cid:127)Increasing the Groups’ corporate value for investors.
policy. As we work toward these goals, I ask our stakehold-
customers and communities overcome challenges.
While promoting this approach, the AGC Group is now
pursuing the objectives laid out in our new management
policy
: to provide safety, security and comfort
to society, create new value and functions for customers
and business partners while building relations of trust,
enhance job satisfaction among employees, and increase
corporate value for investors. This policy reflects the Group’s
commitment to all of its stakeholders, and I will consider
and take every step needed to realize the objectives of the
ers for their understanding and support.
Takuya Shimamura
Representative Director,
President and Chief Executive Officer
Takuya Shimamura
Representative Director,
President and Chief Executive Officer
Apr. 1980
Jan. 2009
Jan. 2010
Jan. 2013
Jan. 2015
Mar. 2015
Joined Asahi Glass
Executive Officer and GM of Planning &
Coordination Office, Chemicals Company
Executive Officer and Chemicals
Company President
Senior Executive Officer and Electronics
Company President
President & CEO
Representative Director and President &
CEO (Incumbent)
11
AGC Report 2015
AGC Report 2015 12
Message from the President and CEO
Based on its diversity, the AGC Group strives as a united team
to create value that no other company can offer.
Ending December 31, 2015, fiscal 2015 is a critical year for
the AGC Group, as it is facing a real test of its ability to end
four consecutive years of declining operating profit. In this
context, I was appointed as President and Chief Executive
Officer on January 1, 2015, and given the responsibility of
leading over 50,000 members of the AGC Group world-
wide. Recognizing the importance of my new role, I
renewed my determination to bring the Group back on the
growth track by harnessing the skills of all of its members.
To achieve this, I intend to return to the basics of our
business, work to enhance the Group’s competitive advan-
tages, and inspire its members to take on the challenge of
creating value that no other company can offer.
The AGC Group has built up various competitive advan-
tages through business activities spanning over a century,
The AGC Group’s new management policy
The AGC Group adds a “plus” by:
(cid:127)Providing safety, security and comfort or to society;
(cid:127)Creating new value and functions for customers and
business partners and building trust with them;
(cid:127)Enhancing job satisfaction among employees; and
(cid:127)Increasing the Groups’ corporate value for investors.
including expertise and technologies in diverse fields such
as glass, chemicals, and ceramics, and a global network
covering a wide range of industries, from building materials
and automobiles to electronics. Our employees all over
the world, with their experience and profound understand-
ing of these technologies and markets, are another source
of the group’s strengths.
By making the most of the benefits that come with this
diversity, we are working to deliver solutions to a broad
spectrum of industries involved in building materials, vehi-
cles, displays, electronic devices, and social infrastructure.
In this way, we are bringing innovations to society that only
a glass and material manufacturer can offer. To realize this
mission, the AGC Group is striving to create new value by
acting on changing trends in society through the lens of
the market, and seeking out new opportunities for helping
customers and communities overcome challenges.
While promoting this approach, the AGC Group is now
pursuing the objectives laid out in our new management
policy
: to provide safety, security and comfort
to society, create new value and functions for customers
and business partners while building relations of trust,
enhance job satisfaction among employees, and increase
corporate value for investors. This policy reflects the Group’s
commitment to all of its stakeholders, and I will consider
and take every step needed to realize the objectives of the
policy. As we work toward these goals, I ask our stakehold-
ers for their understanding and support.
Takuya Shimamura
Representative Director,
President and Chief Executive Officer
Takuya Shimamura
Representative Director,
President and Chief Executive Officer
Apr. 1980
Joined Asahi Glass
Jan. 2009
Executive Officer and GM of Planning &
Coordination Office, Chemicals Company
Jan. 2010
Executive Officer and Chemicals
Company President
Jan. 2013
Senior Executive Officer and Electronics
Company President
Jan. 2015
President & CEO
Mar. 2015
Representative Director and President &
CEO (Incumbent)
11
AGC Report 2015
AGC Report 2015 12
Special Feature
Interview with the President and CEO
Takuya Shimamura
Representative Director,
President and
Chief Executive Officer
The New Management Policy
:
We will offer “plus” value to stakeholders while bringing
the AGC Group back on the growth track.
13
AGC Report 2015
Q1
A1
Could you describe the AGC Group’s
performance in fiscal 2014?
Despite our efforts to restructure
businesses and improve the AGC
Group’s financial structure, results
were disappointing as operating
profit declined for the fourth
consecutive year.
In fiscal 2014, we worked toward two goals under our medi-
um-term management plan
“ -2015”
: to bring
our business back on an upward trend, and to strengthen
and generate substantial results from the Group’s growth
foundations. Accordingly, we focused on business restruc-
turing while trying to improve the Group’s financial struc-
ture, including raising productivity group-wide, making
projects more efficient, and enhancing the organization of
human resources.
Operating profit, however, decreased 17.8 billion yen, or
22.2%, compared to the previous fiscal year, amounting to 62.1
billion yen, mainly owing to declining sales prices of LCD glass
substrates. Consequently, operating profit decreased for the
fourth consecutive year, from fiscal 2011 to fiscal 2014, which is
a very disappointing result. Meanwhile, net income attribut-
able to the owners of the parent company decreased about
0.2 billion yen, or 1.4%, to 15.9 billion yen.
Q2
A2
What was achieved under the
medium-term management plan,
“ -2015”
“ -2015”
, and what is your outlook
going forward?
We carried out investments under
“ -2015”
that should
lead to major financial results from
fiscal 2016, bringing us back on the
growth track.
As a result of these efforts, as well as increased shipments of
We undertook investments aimed at building foundations for
chemical products and glass products, especially automotive
growth in such areas as fast-growing countries, new products,
glass, and the depreciation of the yen, net sales in fiscal 2014
and our chemicals business, and expect these initiatives to bring
rose 28.3 billion yen, or 2.1%, year on year to 1,348.3 billion yen.
about considerable growth in sales and profits from fiscal 2016.
Management policy
“
Grow Beyond ”
New management policy
“
”
1,600.0
Management targets
229.2
1,444.3
1,148.2
1,288.9 1,214.7
1,190.0
154.0
165.7
1,320.0
1,348.3
1,420.0
101.8
79.9
86.7
62.1
62.0
100.0
2010
2011
2012
2013
2014
2015 (Forecast)
2016
2017
for 2017
Net sales
¥1.6 trillion
Operating profit
More than
¥100 billion
ROE
At least 5%
Debt to equity
ratio
No more than 0.5
AGC Report 2015 14
dows, which significantly block ultraviolet and infrared rays, and
Leoflex™ chemically strengthened specialty glass, a multi-pur-
pose product that we promoted as a cover glass for photovol-
taic panels. This year, we began supplying HFO-1234yf auto-
motive refrigerant, an environmentally friendly product that
has a global warming potential (GWP) of no more than 1/1,300
that of conventional refrigerants.
In the Group’s Chemicals operations, to keep up with grow-
ing demand in Southeast Asia, we increased production capac-
ity of caustic soda in Indonesia in 2013 and acquired a polyvinyl
chloride company in Vietnam, a new market for the AGC Group.
Furthermore, we boosted production capacity of pharmaceuti-
cal and agrochemical intermediates and active ingredients,
In the Group’s LCD display glass business, after prices fell
To achieve this, we rallied the AGC Group’s employees
steeply over four consecutive years, they are projected to fall
worldwide to move forward in the same direction, side by
at a comparably more moderate rate in fiscal 2015. In this
side, so the Group can take on challenges as a unified team,
business, we intend to step up marketing efforts in China, a
drawing on the strengths of its wide range of technologies
market that continues to grow, as well as boost productivity
and the expertise of its diverse human resources. At the same
by converting to more efficient glass furnaces, and imple-
time, we renewed our commitment to ensuring fair and
ment measures to reduce costs.
proper conduct, safety, and compliance as the basic princi-
Taking all of these factors into account, we expect the
ples of our business activities.
decline in consolidated operating profit to end in fiscal 2015,
In accordance with this approach under
, we
and the AGC Group to get back on the growth track from fiscal
have determined two key strategies for increasing corpo-
2016 onward.
rate value and generating new growth: we will leverage the
Group’s diverse resources with a stronger focus on markets
to drive up sales, and enhance the Group’s asset perfor-
mance by strategically allocating operational resources.
During the period of the previous medium-term manage-
having carefully considered related trends such as the global
ment plan,
we made important invest-
aging of populations and growing demand for food supplies.
ments in fast-growing countries. The company constructed its
Under
, we improved the Group’s mar-
third plant in China, which started operations in February 2015,
keting capabilities and reduced costs through various struc-
boosting production capacity to meet robust demand from
tural reforms, particularly in response to harsh market condi-
automobile manufacturers in the Chinese market. In the Group’s
tions surrounding the architectural glass business in Europe
electronics business in China, we added a new production line
and the United States. In Europe, we reduced personnel and
at the Shenzhen Plant. Meanwhile, to strengthen operations in
lowered production capacity by suspending glass production
the growth market of Southeast Asia, we invested in a new float
in Italy and Belgium, and in the U.S., we sold off an architectural
glass furnace facility in Indonesia in September 2014, and plan to
glass fabrication subsidiary.
commence mass production there from the third quarter of
Owing to these measures, earnings in the glass business
fiscal 2016 (see chart below).
significantly improved in fiscal 2014 compared to the previous
was launched as our new management policy
when I was appointed as AGC Group’s CEO. We created the
policy with the intention of being a group of companies that
constantly offers more value to its stakeholders, namely the
We were also successful in developing product applications
fiscal year, and we succeeded in making the business profit-
communities we operate in, our customers, business partners,
The AGC Group’s strengths are its diverse products in three
by investing in new products. These included UV Verre
able. We also expect its performance to continue improving in
employees, shareholders, and investors. That is the kind of
domains of materials—glass, chemicals, and ceramics—along
Premium™ tempered glass for automotive front door win-
fiscal 2015 as a result of structural reforms and other measures.
enterprise we want the AGC Group to be.
with a wide range of related technologies, expertise, and facili-
tions, which we will do by effectively marketing our products.
For example, in our automotive glass business, we will pro-
mote glass that helps conserve energy and improve comfort,
and in our chemical products business, we will offer environ-
mentally friendly refrigerants.
Our third approach is to secure new markets and applications
for new products, technologies and services. We are giving
more priority to the first two approaches I mentioned because
our priority right now is to return to the growth track. At the
same time, in order to grow over the medium and long terms,
we are working to create new products and conduct R&D with a
view to solve problems confronting customers and societies.
Through the measures I have described above, we are aiming
has been producing products and technologies that are
to achieve several important management targets by fiscal
needed by society and that have helped solve problems con-
Over a history extending more than a century, the AGC Group
ties. The Group also has a diverse customer base and sales
As we work to boost sales, we are also constantly aware of
2017: net sales of ¥1.6 trillion, operating profit of ¥100 billion,
fronting communities at various times. The Group has been
channels that span globally in numerous industries, including
enhancing asset performance. Therefore, in an effort to maxi-
return on equity of at least 5%, and a debt to equity ratio of no
manufacturing products that, although not easily noticeable,
building materials, automobiles, and electronics. Handling all
mize earnings, we are swiftly channeling operational resources
more than 0.5.
are indispensable and beneficial. Furthermore, while growing in
of this are the Group’s diverse human resources working in
into products and businesses that we deem as having poten-
There is the possibility, however, that business risks could
tandem with the development of society, the AGC Group has
every region of the world. By making the most of these intellec-
tial for high earnings and growth from among the wide range
materialize as a result of future trends in our operating envi-
been helping make communities more sustainable through its
tual assets, production resources, and human resources while
of products and operations positioned in the AGC Group’s
ronment. While preparing for such risks, we intend to swiftly
business activities.
leveraging synergies between each of its businesses, the AGC
business portfolio (see chart below).
carry out whatever additional initiatives are necessary to
Based on this corporate stance, we are working to help solve
Group can increase its net sales.
Up until now, the Group has been able to manufacture and
achieve the management targets above, including further
global environmental problems. Toward this end, we have set
We have devised three main approaches for expanding
supply products by constructing its own production plants in
business restructuring, more investment in growth areas,
the goal of reducing the AGC Group’s total annual CO2 emis-
sales (shown on the chart on page 16). The first is to secure
regions where there was demand for those products. With a
mergers and acquisitions, and business alliances.
sions by six times by 2020 through its energy-saving and ener-
new markets and applications for our existing products, tech-
view to improve asset performance, however, we plan to move
Furthermore, between 2015 and 2017, we will aim to keep
gy-creating products, and have stepped up efforts to develop
nologies and services. To do this, we plan to proactively culti-
beyond this model of self-sufficient in-house production in the
capital expenditures from exceeding 400 billion yen, which is
products that have less impact on the environment, such as
vate markets, particularly in fast-growing countries, by pro-
future, shifting toward jointly managed production with
the estimated amount of depreciation expenses during that
energy-saving glass. We are developing glass and materials that
moting product applications and marketing.
regional business partners, establishing joint ventures, and
period. In consideration of asset efficiency, we plan to chan-
have potential to not only solve environmental and energy-re-
Our second approach is to offer new products, technolo-
other similar measures. This plan will enable the AGC Group to
nel capital expenditures into growth areas, with about 35% of
lated problems, but also various other issues confronting our
gies and services in existing markets and for current applica-
more rapidly respond to market changes and boost its sales.
the total earmarked for the Group’s glass segment and elec-
customers and communities. At the same time, we are focusing
tronics segment, respectively, and the remaining 30% for
on creating new solutions for helping realize smart communities
chemicals segment (see chart below).
where people can live in comfort, security and safety (see pages
Of course, we will work diligently to return profits to share-
39 to 44 for more details).
holders according to our basic policy of maintaining stable
Finally, we intend to channel the capabilities of the AGC
dividend payments. The company’s dividend payout ratio is
Group into a wide array of initiatives intended to accomplish
30%, and we will continue to aim for that level after taking into
our management targets by fiscal 2017 and achieve continu-
consideration financial results, future investment plans, and
ous growth together with stakeholders.
other factors.
Net salesBillion yenOperating profit20082009 Special Feature
Interview with the President and CEO
Q1
A1
Could you describe the AGC Group’s
performance in fiscal 2014?
Despite our efforts to restructure
businesses and improve the AGC
Group’s financial structure, results
were disappointing as operating
profit declined for the fourth
consecutive year.
“ -2015”
In fiscal 2014, we worked toward two goals under our medi-
um-term management plan
: to bring
our business back on an upward trend, and to strengthen
and generate substantial results from the Group’s growth
foundations. Accordingly, we focused on business restruc-
turing while trying to improve the Group’s financial struc-
ture, including raising productivity group-wide, making
projects more efficient, and enhancing the organization of
human resources.
As a result of these efforts, as well as increased shipments of
chemical products and glass products, especially automotive
glass, and the depreciation of the yen, net sales in fiscal 2014
rose 28.3 billion yen, or 2.1%, year on year to 1,348.3 billion yen.
Takuya Shimamura
Representative Director,
President and
Chief Executive Officer
Operating profit, however, decreased 17.8 billion yen, or
22.2%, compared to the previous fiscal year, amounting to 62.1
billion yen, mainly owing to declining sales prices of LCD glass
substrates. Consequently, operating profit decreased for the
fourth consecutive year, from fiscal 2011 to fiscal 2014, which is
a very disappointing result. Meanwhile, net income attribut-
able to the owners of the parent company decreased about
0.2 billion yen, or 1.4%, to 15.9 billion yen.
Q2
What was achieved under the
medium-term management plan,
, and what is your outlook
going forward?
“ -2015”
“ -2015”
A2
We carried out investments under
“ -2015”
that should
lead to major financial results from
fiscal 2016, bringing us back on the
growth track.
We undertook investments aimed at building foundations for
growth in such areas as fast-growing countries, new products,
and our chemicals business, and expect these initiatives to bring
about considerable growth in sales and profits from fiscal 2016.
Management policy
“
Grow Beyond ”
New management policy
“
”
The New Management Policy
:
We will offer “plus” value to stakeholders while bringing
the AGC Group back on the growth track.
229.2
1,444.3
1,148.2
1,288.9 1,214.7
165.7
1,190.0
154.0
1,320.0
1,348.3
1,420.0
1,600.0
Management targets
for 2017
13
AGC Report 2015
101.8
79.9
86.7
62.1
62.0
100.0
2010
2011
2012
2013
2014
2015 (Forecast)
2016
2017
Net sales
¥1.6 trillion
Operating profit
More than
¥100 billion
ROE
At least 5%
Debt to equity
ratio
No more than 0.5
AGC Report 2015 14
dows, which significantly block ultraviolet and infrared rays, and
Leoflex™ chemically strengthened specialty glass, a multi-pur-
pose product that we promoted as a cover glass for photovol-
taic panels. This year, we began supplying HFO-1234yf auto-
motive refrigerant, an environmentally friendly product that
has a global warming potential (GWP) of no more than 1/1,300
that of conventional refrigerants.
In the Group’s Chemicals operations, to keep up with grow-
ing demand in Southeast Asia, we increased production capac-
ity of caustic soda in Indonesia in 2013 and acquired a polyvinyl
chloride company in Vietnam, a new market for the AGC Group.
Furthermore, we boosted production capacity of pharmaceuti-
cal and agrochemical intermediates and active ingredients,
In the Group’s LCD display glass business, after prices fell
To achieve this, we rallied the AGC Group’s employees
steeply over four consecutive years, they are projected to fall
worldwide to move forward in the same direction, side by
at a comparably more moderate rate in fiscal 2015. In this
side, so the Group can take on challenges as a unified team,
business, we intend to step up marketing efforts in China, a
drawing on the strengths of its wide range of technologies
market that continues to grow, as well as boost productivity
and the expertise of its diverse human resources. At the same
by converting to more efficient glass furnaces, and imple-
time, we renewed our commitment to ensuring fair and
ment measures to reduce costs.
proper conduct, safety, and compliance as the basic princi-
Taking all of these factors into account, we expect the
ples of our business activities.
decline in consolidated operating profit to end in fiscal 2015,
In accordance with this approach under
, we
and the AGC Group to get back on the growth track from fiscal
have determined two key strategies for increasing corpo-
2016 onward.
rate value and generating new growth: we will leverage the
Group’s diverse resources with a stronger focus on markets
to drive up sales, and enhance the Group’s asset perfor-
mance by strategically allocating operational resources.
During the period of the previous medium-term manage-
having carefully considered related trends such as the global
ment plan,
we made important invest-
aging of populations and growing demand for food supplies.
ments in fast-growing countries. The company constructed its
Under
, we improved the Group’s mar-
third plant in China, which started operations in February 2015,
keting capabilities and reduced costs through various struc-
boosting production capacity to meet robust demand from
tural reforms, particularly in response to harsh market condi-
automobile manufacturers in the Chinese market. In the Group’s
tions surrounding the architectural glass business in Europe
electronics business in China, we added a new production line
and the United States. In Europe, we reduced personnel and
at the Shenzhen Plant. Meanwhile, to strengthen operations in
lowered production capacity by suspending glass production
the growth market of Southeast Asia, we invested in a new float
in Italy and Belgium, and in the U.S., we sold off an architectural
glass furnace facility in Indonesia in September 2014, and plan to
glass fabrication subsidiary.
commence mass production there from the third quarter of
Owing to these measures, earnings in the glass business
fiscal 2016 (see chart below).
significantly improved in fiscal 2014 compared to the previous
was launched as our new management policy
when I was appointed as AGC Group’s CEO. We created the
policy with the intention of being a group of companies that
constantly offers more value to its stakeholders, namely the
We were also successful in developing product applications
fiscal year, and we succeeded in making the business profit-
communities we operate in, our customers, business partners,
The AGC Group’s strengths are its diverse products in three
by investing in new products. These included UV Verre
able. We also expect its performance to continue improving in
employees, shareholders, and investors. That is the kind of
domains of materials—glass, chemicals, and ceramics—along
Premium™ tempered glass for automotive front door win-
fiscal 2015 as a result of structural reforms and other measures.
enterprise we want the AGC Group to be.
with a wide range of related technologies, expertise, and facili-
tions, which we will do by effectively marketing our products.
For example, in our automotive glass business, we will pro-
mote glass that helps conserve energy and improve comfort,
and in our chemical products business, we will offer environ-
mentally friendly refrigerants.
Our third approach is to secure new markets and applications
for new products, technologies and services. We are giving
more priority to the first two approaches I mentioned because
our priority right now is to return to the growth track. At the
same time, in order to grow over the medium and long terms,
we are working to create new products and conduct R&D with a
view to solve problems confronting customers and societies.
Through the measures I have described above, we are aiming
has been producing products and technologies that are
to achieve several important management targets by fiscal
needed by society and that have helped solve problems con-
Over a history extending more than a century, the AGC Group
ties. The Group also has a diverse customer base and sales
As we work to boost sales, we are also constantly aware of
2017: net sales of ¥1.6 trillion, operating profit of ¥100 billion,
fronting communities at various times. The Group has been
channels that span globally in numerous industries, including
enhancing asset performance. Therefore, in an effort to maxi-
return on equity of at least 5%, and a debt to equity ratio of no
manufacturing products that, although not easily noticeable,
building materials, automobiles, and electronics. Handling all
mize earnings, we are swiftly channeling operational resources
more than 0.5.
are indispensable and beneficial. Furthermore, while growing in
of this are the Group’s diverse human resources working in
into products and businesses that we deem as having poten-
There is the possibility, however, that business risks could
tandem with the development of society, the AGC Group has
every region of the world. By making the most of these intellec-
tial for high earnings and growth from among the wide range
materialize as a result of future trends in our operating envi-
been helping make communities more sustainable through its
tual assets, production resources, and human resources while
of products and operations positioned in the AGC Group’s
ronment. While preparing for such risks, we intend to swiftly
business activities.
leveraging synergies between each of its businesses, the AGC
business portfolio (see chart below).
carry out whatever additional initiatives are necessary to
Based on this corporate stance, we are working to help solve
Group can increase its net sales.
Up until now, the Group has been able to manufacture and
achieve the management targets above, including further
global environmental problems. Toward this end, we have set
We have devised three main approaches for expanding
supply products by constructing its own production plants in
business restructuring, more investment in growth areas,
the goal of reducing the AGC Group’s total annual CO2 emis-
sales (shown on the chart on page 16). The first is to secure
regions where there was demand for those products. With a
mergers and acquisitions, and business alliances.
sions by six times by 2020 through its energy-saving and ener-
new markets and applications for our existing products, tech-
view to improve asset performance, however, we plan to move
Furthermore, between 2015 and 2017, we will aim to keep
gy-creating products, and have stepped up efforts to develop
nologies and services. To do this, we plan to proactively culti-
beyond this model of self-sufficient in-house production in the
capital expenditures from exceeding 400 billion yen, which is
products that have less impact on the environment, such as
vate markets, particularly in fast-growing countries, by pro-
future, shifting toward jointly managed production with
the estimated amount of depreciation expenses during that
energy-saving glass. We are developing glass and materials that
moting product applications and marketing.
regional business partners, establishing joint ventures, and
period. In consideration of asset efficiency, we plan to chan-
have potential to not only solve environmental and energy-re-
Our second approach is to offer new products, technolo-
other similar measures. This plan will enable the AGC Group to
nel capital expenditures into growth areas, with about 35% of
lated problems, but also various other issues confronting our
gies and services in existing markets and for current applica-
more rapidly respond to market changes and boost its sales.
the total earmarked for the Group’s glass segment and elec-
customers and communities. At the same time, we are focusing
tronics segment, respectively, and the remaining 30% for
on creating new solutions for helping realize smart communities
chemicals segment (see chart below).
where people can live in comfort, security and safety (see pages
Of course, we will work diligently to return profits to share-
39 to 44 for more details).
holders according to our basic policy of maintaining stable
Finally, we intend to channel the capabilities of the AGC
dividend payments. The company’s dividend payout ratio is
Group into a wide array of initiatives intended to accomplish
30%, and we will continue to aim for that level after taking into
our management targets by fiscal 2017 and achieve continu-
consideration financial results, future investment plans, and
ous growth together with stakeholders.
other factors.
Net salesBillion yenOperating profit20082009 Operating profit, however, decreased 17.8 billion yen, or
22.2%, compared to the previous fiscal year, amounting to 62.1
billion yen, mainly owing to declining sales prices of LCD glass
substrates. Consequently, operating profit decreased for the
fourth consecutive year, from fiscal 2011 to fiscal 2014, which is
a very disappointing result. Meanwhile, net income attribut-
able to the owners of the parent company decreased about
0.2 billion yen, or 1.4%, to 15.9 billion yen.
In fiscal 2014, we worked toward two goals under our medi-
um-term management plan
: to bring
our business back on an upward trend, and to strengthen
and generate substantial results from the Group’s growth
foundations. Accordingly, we focused on business restruc-
turing while trying to improve the Group’s financial struc-
ture, including raising productivity group-wide, making
projects more efficient, and enhancing the organization of
human resources.
As a result of these efforts, as well as increased shipments of
We undertook investments aimed at building foundations for
chemical products and glass products, especially automotive
growth in such areas as fast-growing countries, new products,
glass, and the depreciation of the yen, net sales in fiscal 2014
and our chemicals business, and expect these initiatives to bring
rose 28.3 billion yen, or 2.1%, year on year to 1,348.3 billion yen.
about considerable growth in sales and profits from fiscal 2016.
Special Feature
Main Points of the New Management Policy:
Interview with the President and CEO
“ -2015”
During the period of the previous medium-term manage-
we made important invest-
ment plan,
ments in fast-growing countries. The company constructed its
third plant in China, which started operations in February 2015,
boosting production capacity to meet robust demand from
automobile manufacturers in the Chinese market. In the Group’s
electronics business in China, we added a new production line
at the Shenzhen Plant. Meanwhile, to strengthen operations in
the growth market of Southeast Asia, we invested in a new float
glass furnace facility in Indonesia in September 2014, and plan to
commence mass production there from the third quarter of
fiscal 2016 (see chart below).
We were also successful in developing product applications
by investing in new products. These included UV Verre
Premium™ tempered glass for automotive front door win-
dows, which significantly block ultraviolet and infrared rays, and
Leoflex™ chemically strengthened specialty glass, a multi-pur-
pose product that we promoted as a cover glass for photovol-
taic panels. This year, we began supplying HFO-1234yf auto-
motive refrigerant, an environmentally friendly product that
has a global warming potential (GWP) of no more than 1/1,300
that of conventional refrigerants.
In the Group’s Chemicals operations, to keep up with grow-
ing demand in Southeast Asia, we increased production capac-
ity of caustic soda in Indonesia in 2013 and acquired a polyvinyl
chloride company in Vietnam, a new market for the AGC Group.
Furthermore, we boosted production capacity of pharmaceuti-
cal and agrochemical intermediates and active ingredients,
having carefully considered related trends such as the global
aging of populations and growing demand for food supplies.
Under
“ -2015”
, we improved the Group’s mar-
keting capabilities and reduced costs through various struc-
tural reforms, particularly in response to harsh market condi-
tions surrounding the architectural glass business in Europe
and the United States. In Europe, we reduced personnel and
lowered production capacity by suspending glass production
in Italy and Belgium, and in the U.S., we sold off an architectural
glass fabrication subsidiary.
Owing to these measures, earnings in the glass business
significantly improved in fiscal 2014 compared to the previous
fiscal year, and we succeeded in making the business profit-
able. We also expect its performance to continue improving in
fiscal 2015 as a result of structural reforms and other measures.
Bolstering the Group’s Business Network in Fast-Growing Countries
Business segment
Country
2010
2011
2012
2013
2014
2015
2016
2017−
Approaches for
Expanding of Sales
Glass
Brazil
Mexico
China
Thailand
Indonesia
Saudi Arabia
Electronics
China
China
Chemicals
Indonesia
Vietnam
Others
15
AGC Report 2015
(cid:127)Started commercial production of float glass
(cid:127)Started commercial production of auto glass
(cid:127)Start commercial production of auto glass
(cid:127)Started commercial production of auto glass
(cid:127)Started commercial production of thin float glass
(cid:127)Increased float production
capacity
(cid:127)Start commercial production of coating glass
(cid:127)Started commercial production in Kunshan
(cid:127)Started commercial production in Shenzhen
(cid:127)Completed production line increase in Shenzhen
(cid:127)Opened a technical center in Shanghai
(cid:127)Increased production capacity of caustic soda
(cid:127)Double PVC production capacity
(cid:127)Acquired Phu My Plastics & Chemicals Co., Ltd.
(cid:127)Established the chief representative position
for China business in Beijing
(cid:127)Set up SE RHQ in Singapore
Approach 2
Approach 3
New products
and services
Offer new products and
services in existing markets
and for current applications
Secure new markets and
applications for
new products and services
AGC Now
Approach 1
Existing products
Offering existing products
and services
and services in
existing markets and
for current applications
Secure new markets
and applications for
existing products and services
Existing markets and applications
New markets and applications
AGC Report 2015 16
In the Group’s LCD display glass business, after prices fell
To achieve this, we rallied the AGC Group’s employees
steeply over four consecutive years, they are projected to fall
worldwide to move forward in the same direction, side by
at a comparably more moderate rate in fiscal 2015. In this
side, so the Group can take on challenges as a unified team,
business, we intend to step up marketing efforts in China, a
drawing on the strengths of its wide range of technologies
market that continues to grow, as well as boost productivity
and the expertise of its diverse human resources. At the same
by converting to more efficient glass furnaces, and imple-
time, we renewed our commitment to ensuring fair and
ment measures to reduce costs.
proper conduct, safety, and compliance as the basic princi-
Taking all of these factors into account, we expect the
ples of our business activities.
decline in consolidated operating profit to end in fiscal 2015,
In accordance with this approach under
, we
and the AGC Group to get back on the growth track from fiscal
have determined two key strategies for increasing corpo-
2016 onward.
Q3
A3
Please tell us about the new
management policy, .
is intended to bring
“plus” value to the AGC Group’s
stakeholders.
was launched as our new management policy
when I was appointed as AGC Group’s CEO. We created the
policy with the intention of being a group of companies that
constantly offers more value to its stakeholders, namely the
rate value and generating new growth: we will leverage the
Group’s diverse resources with a stronger focus on markets
to drive up sales, and enhance the Group’s asset perfor-
mance by strategically allocating operational resources.
Q4
A4
How exactly does the AGC Group
intend to increase sales and improve its
asset performance?
We intend to maximize earnings by
making the most of the AGC Group’s
strengths and utilizing assets from
outside the Group.
communities we operate in, our customers, business partners,
The AGC Group’s strengths are its diverse products in three
employees, shareholders, and investors. That is the kind of
domains of materials—glass, chemicals, and ceramics—along
enterprise we want the AGC Group to be.
with a wide range of related technologies, expertise, and facili-
tions, which we will do by effectively marketing our products.
For example, in our automotive glass business, we will pro-
mote glass that helps conserve energy and improve comfort,
and in our chemical products business, we will offer environ-
mentally friendly refrigerants.
Our third approach is to secure new markets and applications
for new products, technologies and services. We are giving
more priority to the first two approaches I mentioned because
our priority right now is to return to the growth track. At the
same time, in order to grow over the medium and long terms,
we are working to create new products and conduct R&D with a
view to solve problems confronting customers and societies.
Through the measures I have described above, we are aiming
has been producing products and technologies that are
to achieve several important management targets by fiscal
needed by society and that have helped solve problems con-
Over a history extending more than a century, the AGC Group
ties. The Group also has a diverse customer base and sales
As we work to boost sales, we are also constantly aware of
2017: net sales of ¥1.6 trillion, operating profit of ¥100 billion,
fronting communities at various times. The Group has been
channels that span globally in numerous industries, including
enhancing asset performance. Therefore, in an effort to maxi-
return on equity of at least 5%, and a debt to equity ratio of no
manufacturing products that, although not easily noticeable,
building materials, automobiles, and electronics. Handling all
mize earnings, we are swiftly channeling operational resources
more than 0.5.
are indispensable and beneficial. Furthermore, while growing in
of this are the Group’s diverse human resources working in
into products and businesses that we deem as having poten-
There is the possibility, however, that business risks could
tandem with the development of society, the AGC Group has
every region of the world. By making the most of these intellec-
tial for high earnings and growth from among the wide range
materialize as a result of future trends in our operating envi-
been helping make communities more sustainable through its
tual assets, production resources, and human resources while
of products and operations positioned in the AGC Group’s
ronment. While preparing for such risks, we intend to swiftly
business activities.
leveraging synergies between each of its businesses, the AGC
business portfolio (see chart below).
carry out whatever additional initiatives are necessary to
Based on this corporate stance, we are working to help solve
Group can increase its net sales.
Up until now, the Group has been able to manufacture and
achieve the management targets above, including further
global environmental problems. Toward this end, we have set
We have devised three main approaches for expanding
supply products by constructing its own production plants in
business restructuring, more investment in growth areas,
the goal of reducing the AGC Group’s total annual CO2 emis-
sales (shown on the chart on page 16). The first is to secure
regions where there was demand for those products. With a
mergers and acquisitions, and business alliances.
sions by six times by 2020 through its energy-saving and ener-
new markets and applications for our existing products, tech-
view to improve asset performance, however, we plan to move
Furthermore, between 2015 and 2017, we will aim to keep
gy-creating products, and have stepped up efforts to develop
nologies and services. To do this, we plan to proactively culti-
beyond this model of self-sufficient in-house production in the
capital expenditures from exceeding 400 billion yen, which is
products that have less impact on the environment, such as
vate markets, particularly in fast-growing countries, by pro-
future, shifting toward jointly managed production with
the estimated amount of depreciation expenses during that
energy-saving glass. We are developing glass and materials that
moting product applications and marketing.
regional business partners, establishing joint ventures, and
period. In consideration of asset efficiency, we plan to chan-
have potential to not only solve environmental and energy-re-
Our second approach is to offer new products, technolo-
other similar measures. This plan will enable the AGC Group to
nel capital expenditures into growth areas, with about 35% of
lated problems, but also various other issues confronting our
gies and services in existing markets and for current applica-
more rapidly respond to market changes and boost its sales.
the total earmarked for the Group’s glass segment and elec-
customers and communities. At the same time, we are focusing
tronics segment, respectively, and the remaining 30% for
on creating new solutions for helping realize smart communities
chemicals segment (see chart below).
where people can live in comfort, security and safety (see pages
Of course, we will work diligently to return profits to share-
39 to 44 for more details).
holders according to our basic policy of maintaining stable
Finally, we intend to channel the capabilities of the AGC
dividend payments. The company’s dividend payout ratio is
Group into a wide array of initiatives intended to accomplish
30%, and we will continue to aim for that level after taking into
our management targets by fiscal 2017 and achieve continu-
consideration financial results, future investment plans, and
ous growth together with stakeholders.
other factors.
Operating profit, however, decreased 17.8 billion yen, or
22.2%, compared to the previous fiscal year, amounting to 62.1
billion yen, mainly owing to declining sales prices of LCD glass
substrates. Consequently, operating profit decreased for the
fourth consecutive year, from fiscal 2011 to fiscal 2014, which is
a very disappointing result. Meanwhile, net income attribut-
able to the owners of the parent company decreased about
0.2 billion yen, or 1.4%, to 15.9 billion yen.
In fiscal 2014, we worked toward two goals under our medi-
um-term management plan
: to bring
our business back on an upward trend, and to strengthen
and generate substantial results from the Group’s growth
foundations. Accordingly, we focused on business restruc-
turing while trying to improve the Group’s financial struc-
ture, including raising productivity group-wide, making
projects more efficient, and enhancing the organization of
human resources.
As a result of these efforts, as well as increased shipments of
We undertook investments aimed at building foundations for
chemical products and glass products, especially automotive
growth in such areas as fast-growing countries, new products,
glass, and the depreciation of the yen, net sales in fiscal 2014
and our chemicals business, and expect these initiatives to bring
rose 28.3 billion yen, or 2.1%, year on year to 1,348.3 billion yen.
about considerable growth in sales and profits from fiscal 2016.
Special Feature
Interview with the President and CEO
Main Points of the New Management Policy:
dows, which significantly block ultraviolet and infrared rays, and
Leoflex™ chemically strengthened specialty glass, a multi-pur-
pose product that we promoted as a cover glass for photovol-
taic panels. This year, we began supplying HFO-1234yf auto-
motive refrigerant, an environmentally friendly product that
has a global warming potential (GWP) of no more than 1/1,300
that of conventional refrigerants.
In the Group’s Chemicals operations, to keep up with grow-
ing demand in Southeast Asia, we increased production capac-
ity of caustic soda in Indonesia in 2013 and acquired a polyvinyl
chloride company in Vietnam, a new market for the AGC Group.
Furthermore, we boosted production capacity of pharmaceuti-
cal and agrochemical intermediates and active ingredients,
During the period of the previous medium-term manage-
having carefully considered related trends such as the global
ment plan,
“ -2015”
we made important invest-
aging of populations and growing demand for food supplies.
ments in fast-growing countries. The company constructed its
Under
“ -2015”
, we improved the Group’s mar-
third plant in China, which started operations in February 2015,
keting capabilities and reduced costs through various struc-
boosting production capacity to meet robust demand from
tural reforms, particularly in response to harsh market condi-
automobile manufacturers in the Chinese market. In the Group’s
tions surrounding the architectural glass business in Europe
electronics business in China, we added a new production line
and the United States. In Europe, we reduced personnel and
at the Shenzhen Plant. Meanwhile, to strengthen operations in
lowered production capacity by suspending glass production
the growth market of Southeast Asia, we invested in a new float
in Italy and Belgium, and in the U.S., we sold off an architectural
glass furnace facility in Indonesia in September 2014, and plan to
glass fabrication subsidiary.
commence mass production there from the third quarter of
Owing to these measures, earnings in the glass business
fiscal 2016 (see chart below).
significantly improved in fiscal 2014 compared to the previous
We were also successful in developing product applications
fiscal year, and we succeeded in making the business profit-
by investing in new products. These included UV Verre
able. We also expect its performance to continue improving in
Premium™ tempered glass for automotive front door win-
fiscal 2015 as a result of structural reforms and other measures.
In the Group’s LCD display glass business, after prices fell
steeply over four consecutive years, they are projected to fall
at a comparably more moderate rate in fiscal 2015. In this
business, we intend to step up marketing efforts in China, a
market that continues to grow, as well as boost productivity
by converting to more efficient glass furnaces, and imple-
ment measures to reduce costs.
Taking all of these factors into account, we expect the
decline in consolidated operating profit to end in fiscal 2015,
and the AGC Group to get back on the growth track from fiscal
2016 onward.
Q3
A3
Please tell us about the new
management policy, .
is intended to bring
“plus” value to the AGC Group’s
stakeholders.
was launched as our new management policy
when I was appointed as AGC Group’s CEO. We created the
policy with the intention of being a group of companies that
constantly offers more value to its stakeholders, namely the
communities we operate in, our customers, business partners,
employees, shareholders, and investors. That is the kind of
enterprise we want the AGC Group to be.
To achieve this, we rallied the AGC Group’s employees
worldwide to move forward in the same direction, side by
side, so the Group can take on challenges as a unified team,
drawing on the strengths of its wide range of technologies
and the expertise of its diverse human resources. At the same
time, we renewed our commitment to ensuring fair and
proper conduct, safety, and compliance as the basic princi-
ples of our business activities.
In accordance with this approach under
, we
have determined two key strategies for increasing corpo-
rate value and generating new growth: we will leverage the
Group’s diverse resources with a stronger focus on markets
to drive up sales, and enhance the Group’s asset perfor-
mance by strategically allocating operational resources.
Q4
A4
How exactly does the AGC Group
intend to increase sales and improve its
asset performance?
We intend to maximize earnings by
making the most of the AGC Group’s
strengths and utilizing assets from
outside the Group.
The AGC Group’s strengths are its diverse products in three
domains of materials—glass, chemicals, and ceramics—along
with a wide range of related technologies, expertise, and facili-
Bolstering the Group’s Business Network in Fast-Growing Countries
Business segment
Country
2010
2011
2012
2013
2014
2015
2016
2017−
Approaches for
Expanding of Sales
Approach 2
Approach 3
New products
and services
Offer new products and
services in existing markets
and for current applications
Secure new markets and
applications for
new products and services
AGC Now
Approach 1
Existing products
and services
Offering existing products
and services in
existing markets and
for current applications
Secure new markets
and applications for
existing products and services
Others
(cid:127)Established the chief representative position
for China business in Beijing
(cid:127)Set up SE RHQ in Singapore
Existing markets and applications
New markets and applications
AGC Report 2015 16
Electronics
China
(cid:127)Started commercial production in Kunshan
(cid:127)Started commercial production in Shenzhen
(cid:127)Completed production line increase in Shenzhen
(cid:127)Started commercial production of float glass
(cid:127)Started commercial production of auto glass
(cid:127)Start commercial production of auto glass
(cid:127)Started commercial production of auto glass
(cid:127)Started commercial production of thin float glass
(cid:127)Increased float production
capacity
(cid:127)Start commercial production of coating glass
(cid:127)Opened a technical center in Shanghai
(cid:127)Increased production capacity of caustic soda
(cid:127)Double PVC production capacity
(cid:127)Acquired Phu My Plastics & Chemicals Co., Ltd.
Glass
Brazil
Mexico
China
Thailand
Indonesia
Saudi Arabia
China
Vietnam
Chemicals
Indonesia
15
AGC Report 2015
tions, which we will do by effectively marketing our products.
For example, in our automotive glass business, we will pro-
mote glass that helps conserve energy and improve comfort,
and in our chemical products business, we will offer environ-
mentally friendly refrigerants.
Our third approach is to secure new markets and applications
for new products, technologies and services. We are giving
more priority to the first two approaches I mentioned because
our priority right now is to return to the growth track. At the
same time, in order to grow over the medium and long terms,
we are working to create new products and conduct R&D with a
view to solve problems confronting customers and societies.
Through the measures I have described above, we are aiming
has been producing products and technologies that are
to achieve several important management targets by fiscal
needed by society and that have helped solve problems con-
Over a history extending more than a century, the AGC Group
ties. The Group also has a diverse customer base and sales
As we work to boost sales, we are also constantly aware of
2017: net sales of ¥1.6 trillion, operating profit of ¥100 billion,
fronting communities at various times. The Group has been
channels that span globally in numerous industries, including
enhancing asset performance. Therefore, in an effort to maxi-
return on equity of at least 5%, and a debt to equity ratio of no
manufacturing products that, although not easily noticeable,
building materials, automobiles, and electronics. Handling all
mize earnings, we are swiftly channeling operational resources
more than 0.5.
are indispensable and beneficial. Furthermore, while growing in
of this are the Group’s diverse human resources working in
into products and businesses that we deem as having poten-
There is the possibility, however, that business risks could
tandem with the development of society, the AGC Group has
every region of the world. By making the most of these intellec-
tial for high earnings and growth from among the wide range
materialize as a result of future trends in our operating envi-
been helping make communities more sustainable through its
tual assets, production resources, and human resources while
of products and operations positioned in the AGC Group’s
ronment. While preparing for such risks, we intend to swiftly
business activities.
leveraging synergies between each of its businesses, the AGC
business portfolio (see chart below).
carry out whatever additional initiatives are necessary to
Based on this corporate stance, we are working to help solve
Group can increase its net sales.
Up until now, the Group has been able to manufacture and
achieve the management targets above, including further
global environmental problems. Toward this end, we have set
We have devised three main approaches for expanding
supply products by constructing its own production plants in
business restructuring, more investment in growth areas,
the goal of reducing the AGC Group’s total annual CO2 emis-
sales (shown on the chart on page 16). The first is to secure
regions where there was demand for those products. With a
mergers and acquisitions, and business alliances.
sions by six times by 2020 through its energy-saving and ener-
new markets and applications for our existing products, tech-
view to improve asset performance, however, we plan to move
Furthermore, between 2015 and 2017, we will aim to keep
gy-creating products, and have stepped up efforts to develop
nologies and services. To do this, we plan to proactively culti-
beyond this model of self-sufficient in-house production in the
capital expenditures from exceeding 400 billion yen, which is
products that have less impact on the environment, such as
vate markets, particularly in fast-growing countries, by pro-
future, shifting toward jointly managed production with
the estimated amount of depreciation expenses during that
energy-saving glass. We are developing glass and materials that
moting product applications and marketing.
regional business partners, establishing joint ventures, and
period. In consideration of asset efficiency, we plan to chan-
have potential to not only solve environmental and energy-re-
Our second approach is to offer new products, technolo-
other similar measures. This plan will enable the AGC Group to
nel capital expenditures into growth areas, with about 35% of
lated problems, but also various other issues confronting our
gies and services in existing markets and for current applica-
more rapidly respond to market changes and boost its sales.
the total earmarked for the Group’s glass segment and elec-
customers and communities. At the same time, we are focusing
tronics segment, respectively, and the remaining 30% for
on creating new solutions for helping realize smart communities
chemicals segment (see chart below).
where people can live in comfort, security and safety (see pages
Of course, we will work diligently to return profits to share-
39 to 44 for more details).
holders according to our basic policy of maintaining stable
Finally, we intend to channel the capabilities of the AGC
dividend payments. The company’s dividend payout ratio is
Group into a wide array of initiatives intended to accomplish
30%, and we will continue to aim for that level after taking into
our management targets by fiscal 2017 and achieve continu-
consideration financial results, future investment plans, and
ous growth together with stakeholders.
other factors.
Operating profit, however, decreased 17.8 billion yen, or
22.2%, compared to the previous fiscal year, amounting to 62.1
billion yen, mainly owing to declining sales prices of LCD glass
substrates. Consequently, operating profit decreased for the
fourth consecutive year, from fiscal 2011 to fiscal 2014, which is
a very disappointing result. Meanwhile, net income attribut-
able to the owners of the parent company decreased about
0.2 billion yen, or 1.4%, to 15.9 billion yen.
In fiscal 2014, we worked toward two goals under our medi-
um-term management plan
: to bring
our business back on an upward trend, and to strengthen
and generate substantial results from the Group’s growth
foundations. Accordingly, we focused on business restruc-
turing while trying to improve the Group’s financial struc-
ture, including raising productivity group-wide, making
projects more efficient, and enhancing the organization of
human resources.
As a result of these efforts, as well as increased shipments of
We undertook investments aimed at building foundations for
chemical products and glass products, especially automotive
growth in such areas as fast-growing countries, new products,
glass, and the depreciation of the yen, net sales in fiscal 2014
and our chemicals business, and expect these initiatives to bring
rose 28.3 billion yen, or 2.1%, year on year to 1,348.3 billion yen.
about considerable growth in sales and profits from fiscal 2016.
dows, which significantly block ultraviolet and infrared rays, and
Leoflex™ chemically strengthened specialty glass, a multi-pur-
pose product that we promoted as a cover glass for photovol-
taic panels. This year, we began supplying HFO-1234yf auto-
motive refrigerant, an environmentally friendly product that
has a global warming potential (GWP) of no more than 1/1,300
that of conventional refrigerants.
In the Group’s Chemicals operations, to keep up with grow-
ing demand in Southeast Asia, we increased production capac-
ity of caustic soda in Indonesia in 2013 and acquired a polyvinyl
chloride company in Vietnam, a new market for the AGC Group.
Furthermore, we boosted production capacity of pharmaceuti-
cal and agrochemical intermediates and active ingredients,
In the Group’s LCD display glass business, after prices fell
To achieve this, we rallied the AGC Group’s employees
steeply over four consecutive years, they are projected to fall
worldwide to move forward in the same direction, side by
at a comparably more moderate rate in fiscal 2015. In this
side, so the Group can take on challenges as a unified team,
business, we intend to step up marketing efforts in China, a
drawing on the strengths of its wide range of technologies
market that continues to grow, as well as boost productivity
and the expertise of its diverse human resources. At the same
by converting to more efficient glass furnaces, and imple-
time, we renewed our commitment to ensuring fair and
ment measures to reduce costs.
proper conduct, safety, and compliance as the basic princi-
Taking all of these factors into account, we expect the
ples of our business activities.
decline in consolidated operating profit to end in fiscal 2015,
In accordance with this approach under
, we
and the AGC Group to get back on the growth track from fiscal
have determined two key strategies for increasing corpo-
2016 onward.
rate value and generating new growth: we will leverage the
Group’s diverse resources with a stronger focus on markets
to drive up sales, and enhance the Group’s asset perfor-
mance by strategically allocating operational resources.
During the period of the previous medium-term manage-
having carefully considered related trends such as the global
ment plan,
we made important invest-
aging of populations and growing demand for food supplies.
ments in fast-growing countries. The company constructed its
Under
, we improved the Group’s mar-
third plant in China, which started operations in February 2015,
keting capabilities and reduced costs through various struc-
boosting production capacity to meet robust demand from
tural reforms, particularly in response to harsh market condi-
automobile manufacturers in the Chinese market. In the Group’s
tions surrounding the architectural glass business in Europe
electronics business in China, we added a new production line
and the United States. In Europe, we reduced personnel and
at the Shenzhen Plant. Meanwhile, to strengthen operations in
lowered production capacity by suspending glass production
the growth market of Southeast Asia, we invested in a new float
in Italy and Belgium, and in the U.S., we sold off an architectural
glass furnace facility in Indonesia in September 2014, and plan to
glass fabrication subsidiary.
commence mass production there from the third quarter of
Owing to these measures, earnings in the glass business
fiscal 2016 (see chart below).
significantly improved in fiscal 2014 compared to the previous
was launched as our new management policy
when I was appointed as AGC Group’s CEO. We created the
policy with the intention of being a group of companies that
constantly offers more value to its stakeholders, namely the
We were also successful in developing product applications
fiscal year, and we succeeded in making the business profit-
communities we operate in, our customers, business partners,
The AGC Group’s strengths are its diverse products in three
by investing in new products. These included UV Verre
able. We also expect its performance to continue improving in
employees, shareholders, and investors. That is the kind of
domains of materials—glass, chemicals, and ceramics—along
Premium™ tempered glass for automotive front door win-
fiscal 2015 as a result of structural reforms and other measures.
enterprise we want the AGC Group to be.
with a wide range of related technologies, expertise, and facili-
Special Feature
Main Points of the New Management Policy:
Interview with the President and CEO
tions, which we will do by effectively marketing our products.
For example, in our automotive glass business, we will pro-
mote glass that helps conserve energy and improve comfort,
and in our chemical products business, we will offer environ-
mentally friendly refrigerants.
Our third approach is to secure new markets and applications
for new products, technologies and services. We are giving
more priority to the first two approaches I mentioned because
our priority right now is to return to the growth track. At the
same time, in order to grow over the medium and long terms,
we are working to create new products and conduct R&D with a
view to solve problems confronting customers and societies.
As we work to boost sales, we are also constantly aware of
enhancing asset performance. Therefore, in an effort to maxi-
mize earnings, we are swiftly channeling operational resources
into products and businesses that we deem as having poten-
tial for high earnings and growth from among the wide range
of products and operations positioned in the AGC Group’s
business portfolio (see chart below).
Up until now, the Group has been able to manufacture and
supply products by constructing its own production plants in
regions where there was demand for those products. With a
view to improve asset performance, however, we plan to move
beyond this model of self-sufficient in-house production in the
future, shifting toward jointly managed production with
regional business partners, establishing joint ventures, and
other similar measures. This plan will enable the AGC Group to
more rapidly respond to market changes and boost its sales.
ties. The Group also has a diverse customer base and sales
channels that span globally in numerous industries, including
building materials, automobiles, and electronics. Handling all
of this are the Group’s diverse human resources working in
every region of the world. By making the most of these intellec-
tual assets, production resources, and human resources while
leveraging synergies between each of its businesses, the AGC
Group can increase its net sales.
We have devised three main approaches for expanding
sales (shown on the chart on page 16). The first is to secure
new markets and applications for our existing products, tech-
nologies and services. To do this, we plan to proactively culti-
vate markets, particularly in fast-growing countries, by pro-
moting product applications and marketing.
Our second approach is to offer new products, technolo-
gies and services in existing markets and for current applica-
Business Portfolio—Strategic Objectives for Allocating Operational Resources
Growth businesses targeted
for proactive investment
Businesses generating cash flows
Businesses needing structural improvements
Glass
(cid:127)Automotive glass
Gain a stronger foothold in the Group’s global top position
(cid:127)Architectural glass (fast-growing countries)
Proactively utilize resources outside the AGC Group
(cid:127)Architectural glass (Developed countries)
Continue improving the financial structure and
implementing structural reforms
Electronics
(cid:127)Electronic materials
Channel operational resources into growth fields
(cid:127)Glass for chemical strengthening
Offer products to a broader range of markets
(cid:127)Ultra-thin glass
Chemicals
(cid:127)Chlor-alkali (Outside Japan)
Secure a position in the high-growth Southeast Asia market
(cid:127)Fluorochemicals
Capitalize on growing global demand for highly functional
materials
(cid:127)Life science
Focus on growing pharmaceutical and agrochemical markets
(cid:127)LCD glass
Reduce costs and shift production
capacity to China
—
—
(cid:127)Chlor-alkali (Japan)
Q5
A5
Please explain how your numerical
targets will indicate that the Group has
returned to the growth path. And
could you tell us how management
plans to achieve those targets?
We will prepare for business risks and
carry out additional initiatives
whenever necessary.
Q6
A6
What do you believe is important for
realizing a sustainable society?
We are focusing our efforts on
creating new solutions that help
make communities “smarter.”
Over a history extending more than a century, the AGC Group
Through the measures I have described above, we are aiming
has been producing products and technologies that are
to achieve several important management targets by fiscal
needed by society and that have helped solve problems con-
2017: net sales of ¥1.6 trillion, operating profit of ¥100 billion,
fronting communities at various times. The Group has been
return on equity of at least 5%, and a debt to equity ratio of no
manufacturing products that, although not easily noticeable,
more than 0.5.
are indispensable and beneficial. Furthermore, while growing in
There is the possibility, however, that business risks could
tandem with the development of society, the AGC Group has
materialize as a result of future trends in our operating envi-
been helping make communities more sustainable through its
ronment. While preparing for such risks, we intend to swiftly
business activities.
carry out whatever additional initiatives are necessary to
Based on this corporate stance, we are working to help solve
achieve the management targets above, including further
global environmental problems. Toward this end, we have set
business restructuring, more investment in growth areas,
the goal of reducing the AGC Group’s total annual CO2 emis-
mergers and acquisitions, and business alliances.
sions by six times by 2020 through its energy-saving and ener-
Furthermore, between 2015 and 2017, we will aim to keep
gy-creating products, and have stepped up efforts to develop
capital expenditures from exceeding 400 billion yen, which is
products that have less impact on the environment, such as
the estimated amount of depreciation expenses during that
energy-saving glass. We are developing glass and materials that
period. In consideration of asset efficiency, we plan to chan-
have potential to not only solve environmental and energy-re-
nel capital expenditures into growth areas, with about 35% of
lated problems, but also various other issues confronting our
the total earmarked for the Group’s glass segment and elec-
customers and communities. At the same time, we are focusing
tronics segment, respectively, and the remaining 30% for
on creating new solutions for helping realize smart communities
chemicals segment (see chart below).
where people can live in comfort, security and safety (see pages
Of course, we will work diligently to return profits to share-
39 to 44 for more details).
holders according to our basic policy of maintaining stable
Finally, we intend to channel the capabilities of the AGC
dividend payments. The company’s dividend payout ratio is
Group into a wide array of initiatives intended to accomplish
30%, and we will continue to aim for that level after taking into
our management targets by fiscal 2017 and achieve continu-
consideration financial results, future investment plans, and
ous growth together with stakeholders.
other factors.
Breakdown of Planned Capital Expenditures
by Business Segment
2012–2014
2015–2017 (Forecast)
Chemicals
21%
Glass
43%
Chemicals
30%
Glass
35%
Total
¥423
billion
Total
¥400
billion
Electronics
36%
Electronics
35%
17
AGC Report 2015
AGC Report 2015 18
Operating profit, however, decreased 17.8 billion yen, or
22.2%, compared to the previous fiscal year, amounting to 62.1
billion yen, mainly owing to declining sales prices of LCD glass
substrates. Consequently, operating profit decreased for the
fourth consecutive year, from fiscal 2011 to fiscal 2014, which is
a very disappointing result. Meanwhile, net income attribut-
able to the owners of the parent company decreased about
0.2 billion yen, or 1.4%, to 15.9 billion yen.
In fiscal 2014, we worked toward two goals under our medi-
um-term management plan
: to bring
our business back on an upward trend, and to strengthen
and generate substantial results from the Group’s growth
foundations. Accordingly, we focused on business restruc-
turing while trying to improve the Group’s financial struc-
ture, including raising productivity group-wide, making
projects more efficient, and enhancing the organization of
human resources.
As a result of these efforts, as well as increased shipments of
We undertook investments aimed at building foundations for
chemical products and glass products, especially automotive
growth in such areas as fast-growing countries, new products,
glass, and the depreciation of the yen, net sales in fiscal 2014
and our chemicals business, and expect these initiatives to bring
rose 28.3 billion yen, or 2.1%, year on year to 1,348.3 billion yen.
about considerable growth in sales and profits from fiscal 2016.
dows, which significantly block ultraviolet and infrared rays, and
Leoflex™ chemically strengthened specialty glass, a multi-pur-
pose product that we promoted as a cover glass for photovol-
taic panels. This year, we began supplying HFO-1234yf auto-
motive refrigerant, an environmentally friendly product that
has a global warming potential (GWP) of no more than 1/1,300
that of conventional refrigerants.
In the Group’s Chemicals operations, to keep up with grow-
ing demand in Southeast Asia, we increased production capac-
ity of caustic soda in Indonesia in 2013 and acquired a polyvinyl
chloride company in Vietnam, a new market for the AGC Group.
Furthermore, we boosted production capacity of pharmaceuti-
cal and agrochemical intermediates and active ingredients,
In the Group’s LCD display glass business, after prices fell
To achieve this, we rallied the AGC Group’s employees
steeply over four consecutive years, they are projected to fall
worldwide to move forward in the same direction, side by
at a comparably more moderate rate in fiscal 2015. In this
side, so the Group can take on challenges as a unified team,
business, we intend to step up marketing efforts in China, a
drawing on the strengths of its wide range of technologies
market that continues to grow, as well as boost productivity
and the expertise of its diverse human resources. At the same
by converting to more efficient glass furnaces, and imple-
time, we renewed our commitment to ensuring fair and
ment measures to reduce costs.
proper conduct, safety, and compliance as the basic princi-
Taking all of these factors into account, we expect the
ples of our business activities.
decline in consolidated operating profit to end in fiscal 2015,
In accordance with this approach under
, we
and the AGC Group to get back on the growth track from fiscal
have determined two key strategies for increasing corpo-
2016 onward.
rate value and generating new growth: we will leverage the
Group’s diverse resources with a stronger focus on markets
to drive up sales, and enhance the Group’s asset perfor-
mance by strategically allocating operational resources.
During the period of the previous medium-term manage-
having carefully considered related trends such as the global
ment plan,
we made important invest-
aging of populations and growing demand for food supplies.
ments in fast-growing countries. The company constructed its
Under
, we improved the Group’s mar-
third plant in China, which started operations in February 2015,
keting capabilities and reduced costs through various struc-
boosting production capacity to meet robust demand from
tural reforms, particularly in response to harsh market condi-
automobile manufacturers in the Chinese market. In the Group’s
tions surrounding the architectural glass business in Europe
electronics business in China, we added a new production line
and the United States. In Europe, we reduced personnel and
at the Shenzhen Plant. Meanwhile, to strengthen operations in
lowered production capacity by suspending glass production
the growth market of Southeast Asia, we invested in a new float
in Italy and Belgium, and in the U.S., we sold off an architectural
glass furnace facility in Indonesia in September 2014, and plan to
glass fabrication subsidiary.
commence mass production there from the third quarter of
Owing to these measures, earnings in the glass business
fiscal 2016 (see chart below).
significantly improved in fiscal 2014 compared to the previous
was launched as our new management policy
when I was appointed as AGC Group’s CEO. We created the
policy with the intention of being a group of companies that
constantly offers more value to its stakeholders, namely the
We were also successful in developing product applications
fiscal year, and we succeeded in making the business profit-
communities we operate in, our customers, business partners,
The AGC Group’s strengths are its diverse products in three
by investing in new products. These included UV Verre
able. We also expect its performance to continue improving in
employees, shareholders, and investors. That is the kind of
domains of materials—glass, chemicals, and ceramics—along
Premium™ tempered glass for automotive front door win-
fiscal 2015 as a result of structural reforms and other measures.
enterprise we want the AGC Group to be.
with a wide range of related technologies, expertise, and facili-
Special Feature
Interview with the President and CEO
Main Points of the New Management Policy:
tions, which we will do by effectively marketing our products.
For example, in our automotive glass business, we will pro-
mote glass that helps conserve energy and improve comfort,
and in our chemical products business, we will offer environ-
mentally friendly refrigerants.
Our third approach is to secure new markets and applications
for new products, technologies and services. We are giving
more priority to the first two approaches I mentioned because
our priority right now is to return to the growth track. At the
same time, in order to grow over the medium and long terms,
we are working to create new products and conduct R&D with a
view to solve problems confronting customers and societies.
ties. The Group also has a diverse customer base and sales
As we work to boost sales, we are also constantly aware of
channels that span globally in numerous industries, including
enhancing asset performance. Therefore, in an effort to maxi-
building materials, automobiles, and electronics. Handling all
mize earnings, we are swiftly channeling operational resources
of this are the Group’s diverse human resources working in
into products and businesses that we deem as having poten-
every region of the world. By making the most of these intellec-
tial for high earnings and growth from among the wide range
tual assets, production resources, and human resources while
of products and operations positioned in the AGC Group’s
leveraging synergies between each of its businesses, the AGC
business portfolio (see chart below).
Group can increase its net sales.
Up until now, the Group has been able to manufacture and
We have devised three main approaches for expanding
supply products by constructing its own production plants in
sales (shown on the chart on page 16). The first is to secure
regions where there was demand for those products. With a
new markets and applications for our existing products, tech-
view to improve asset performance, however, we plan to move
nologies and services. To do this, we plan to proactively culti-
beyond this model of self-sufficient in-house production in the
vate markets, particularly in fast-growing countries, by pro-
future, shifting toward jointly managed production with
moting product applications and marketing.
regional business partners, establishing joint ventures, and
Our second approach is to offer new products, technolo-
other similar measures. This plan will enable the AGC Group to
gies and services in existing markets and for current applica-
more rapidly respond to market changes and boost its sales.
Business Portfolio—Strategic Objectives for Allocating Operational Resources
Growth businesses targeted
for proactive investment
Businesses generating cash flows
Businesses needing structural improvements
Glass
(cid:127)Automotive glass
Gain a stronger foothold in the Group’s global top position
Proactively utilize resources outside the AGC Group
(cid:127)Architectural glass (fast-growing countries)
(cid:127)Architectural glass (Developed countries)
Continue improving the financial structure and
implementing structural reforms
(cid:127)Electronic materials
Channel operational resources into growth fields
Electronics
(cid:127)Glass for chemical strengthening
Offer products to a broader range of markets
(cid:127)Ultra-thin glass
(cid:127)LCD glass
Reduce costs and shift production
capacity to China
—
Chemicals
Capitalize on growing global demand for highly functional
—
(cid:127)Chlor-alkali (Japan)
(cid:127)Chlor-alkali (Outside Japan)
Secure a position in the high-growth Southeast Asia market
(cid:127)Fluorochemicals
materials
(cid:127)Life science
Focus on growing pharmaceutical and agrochemical markets
Q6
A6
What do you believe is important for
realizing a sustainable society?
We are focusing our efforts on
creating new solutions that help
make communities “smarter.”
Over a history extending more than a century, the AGC Group
has been producing products and technologies that are
needed by society and that have helped solve problems con-
fronting communities at various times. The Group has been
manufacturing products that, although not easily noticeable,
are indispensable and beneficial. Furthermore, while growing in
tandem with the development of society, the AGC Group has
been helping make communities more sustainable through its
business activities.
Based on this corporate stance, we are working to help solve
global environmental problems. Toward this end, we have set
the goal of reducing the AGC Group’s total annual CO2 emis-
sions by six times by 2020 through its energy-saving and ener-
gy-creating products, and have stepped up efforts to develop
products that have less impact on the environment, such as
energy-saving glass. We are developing glass and materials that
have potential to not only solve environmental and energy-re-
lated problems, but also various other issues confronting our
customers and communities. At the same time, we are focusing
on creating new solutions for helping realize smart communities
where people can live in comfort, security and safety (see pages
39 to 44 for more details).
Finally, we intend to channel the capabilities of the AGC
Group into a wide array of initiatives intended to accomplish
our management targets by fiscal 2017 and achieve continu-
ous growth together with stakeholders.
Q5
Please explain how your numerical
targets will indicate that the Group has
returned to the growth path. And
could you tell us how management
plans to achieve those targets?
A5
We will prepare for business risks and
carry out additional initiatives
whenever necessary.
Through the measures I have described above, we are aiming
to achieve several important management targets by fiscal
2017: net sales of ¥1.6 trillion, operating profit of ¥100 billion,
return on equity of at least 5%, and a debt to equity ratio of no
more than 0.5.
There is the possibility, however, that business risks could
materialize as a result of future trends in our operating envi-
ronment. While preparing for such risks, we intend to swiftly
carry out whatever additional initiatives are necessary to
achieve the management targets above, including further
business restructuring, more investment in growth areas,
mergers and acquisitions, and business alliances.
Furthermore, between 2015 and 2017, we will aim to keep
capital expenditures from exceeding 400 billion yen, which is
the estimated amount of depreciation expenses during that
period. In consideration of asset efficiency, we plan to chan-
nel capital expenditures into growth areas, with about 35% of
the total earmarked for the Group’s glass segment and elec-
tronics segment, respectively, and the remaining 30% for
chemicals segment (see chart below).
Of course, we will work diligently to return profits to share-
holders according to our basic policy of maintaining stable
dividend payments. The company’s dividend payout ratio is
30%, and we will continue to aim for that level after taking into
consideration financial results, future investment plans, and
other factors.
Breakdown of Planned Capital Expenditures
by Business Segment
2012–2014
2015–2017 (Forecast)
Chemicals
21%
Glass
43%
Chemicals
30%
Glass
35%
Total
¥423
billion
Total
¥400
billion
Electronics
36%
Electronics
35%
17
AGC Report 2015
AGC Report 2015 18
Financial and Non-Financial Highlights
Organizations Covered in the Report: Asahi Glass Co., Ltd. and its consolidated subsidiaries
Reporting Period: Consolidated fiscal year ending December 31
All numeric data (except non-financial data) is based on International Financial Reporting Standards (IFRS)
Financial Data
Net Sales
(Billion yen)
1,600
1,320.0
1,348.3
1,190.0
1,200
800
400
0
2012
2013
2014
(Year)
Assets
(Billion yen)
2,500
2,120.6
2,077.3
2,000
1,916.4
1,500
1,000
500
Operating Profit
(Billion yen)
120
101.8
79.9
62.1
2012
2013
2014
(Year)
1,180.5
1,145.1
960.7
90
60
30
0
Capital
(Billion yen)
1,600
1,200
800
400
Net Income Attributable
to Owners of the Parent
Net income
(Billion yen)
100
5.8
Return on
Equity (ROE)
ROE
(%)
6
75
50
25
0
4
2
48.4
1.6
16.1
1.4
15.9
2012
2013
2014
(Year)
0
Interest-Bearing Debt
Interest-Bearing Debt
(Billion yen)
900
0.56
Debt to Equity
(D/E) Ratio
Debt to Equity
(D/E) Ratio
(Multiple)
0.6
0.50
575.0
538.6
0.42
499.3
0.4
0.2
600
300
0
2012
2013
2014
(Year)
0
2012
2013
2014
(Year)
0
2012
2013
2014
(Year)
0
0
2012
2013
2014
(Year)
0
2012
2013
2014
(Year)
2012
2013
2014
(Year)
Capital Expenditures
Depreciation Costs
R&D Costs
(Billion yen)
200
166.3
150
100
50
0
138.5
118.2
2012
2013
2014
(Year)
(Billion yen)
160
(Billion yen)
60
135.8
137.2
117.9
2012
2013
2014
(Year)
120
80
40
0
45
30
15
0
47.1
46.9
44.8
2012
2013
2014
(Year)
(Note) Please refer to page 21 for financial data by segment, and to the Annual Securities Report (Japanese only) or Financial Review booklet (English only) for
4 Sales by region calculated before elimination 5 Due to rounding, the entire group value does not match the total sum for all regions.
more detailed financial data.
19
AGC Report 2015
Non-Financial Data
Human resources and occupational safety data
Number of employees
Number of fatal accidents1
Environment data
Total energy consumption (PJ)2
Greenhouse gas emissions (1,000 tons-CO2)
Total waste generated (1,000 tons)
Total waste disposed (1,000 tons)
Total water intake (million m3)3
2012
2013
49,961
51,448
3
2
150
10,100
650
25
57
147
9,870
664
22
62
2014
51,114
0
150
10,000
675
23
376
Year-on-year
change
−334
−2
3
130
11
1
—
(Note) Please refer to the separate CSR Information Supplement and our CSR website for more detailed non-financial data.
1 Number of AGC Group employees 2 1 PJ (petajoule) = 1015J (joules)
3 2012 and 2013 numbers are for AGC Group (Japan), whereas 2014 numbers are for AGC Group as a whole.
Net Sales (Japan/Asia)
Net Sales (Europe)
Net Sales (The Americas)
(Billion yen)
(Billion yen)
911.1
956.9
939.8
313.0
291.4
229.0
139.9
111.8
83.6
Data by Region
(Billion yen)
1,200
900
600
300
400
300
200
100
160
120
80
40
0
Sales Ratio4
Employees Ratio
Total Energy Consumption
Greenhouse Gas Emissions
The Americas
The Americas
The Americas
Ratio
Ratio5
The Americas
10.0%
139.9 billion yen
7.8%
4,000
8.5%
13 PJ
2014
1,392.8
billion yen
2014
51,114
2014
150
PJ
Europe
22.5%
313.0
Japan/Asia
67.5%
939.8
billion yen
billion yen
Europe
28.5%
14,563
Japan/Asia
63.7%
32,551
Europe
21.3%
32 PJ
Japan/Asia
70.2%
105 PJ
Europe
24.4%
2,450
thousand
tons-CO2
Japan/Asia
68.1%
6,840
thousand
tons-CO2
7.5%
754
thousand
tons-CO2
2014
10,000
thousand
tons-CO2
AGC Report 2015 20
Financial and Non-Financial Highlights
Organizations Covered in the Report: Asahi Glass Co., Ltd. and its consolidated subsidiaries
Reporting Period: Consolidated fiscal year ending December 31
All numeric data (except non-financial data) is based on International Financial Reporting Standards (IFRS)
Financial Data
Net Sales
(Billion yen)
1,600
1,320.0
1,348.3
1,190.0
1,200
Operating Profit
(Billion yen)
120
101.8
79.9
62.1
Net Income Attributable
to Owners of the Parent
Return on
Equity (ROE)
Net income
(Billion yen)
100
5.8
ROE
(%)
6
48.4
1.4
1.6
16.1
15.9
Interest-Bearing Debt
Debt to Equity
Interest-Bearing Debt
(Billion yen)
900
0.56
(D/E) Ratio
Debt to Equity
(D/E) Ratio
(Multiple)
0.50
575.0
538.6
0.42
499.3
4
2
0.6
0.4
0.2
75
50
25
0
600
300
60
45
30
15
0
0
2012
2013
2014
(Year)
2012
2013
2014
(Year)
2012
2013
2014
(Year)
0
Assets
(Billion yen)
2,500
2,120.6
2,077.3
2,000
1,916.4
Capital
(Billion yen)
1,600
1,180.5
1,145.1
960.7
Capital Expenditures
Depreciation Costs
R&D Costs
(Billion yen)
200
166.3
138.5
118.2
(Billion yen)
160
(Billion yen)
135.8
137.2
117.9
47.1
46.9
44.8
2012
2013
2014
(Year)
2012
2013
2014
(Year)
2012
2013
2014
(Year)
more detailed financial data.
19
AGC Report 2015
90
60
30
0
1,200
800
400
120
80
40
0
800
400
1,500
1,000
500
150
100
50
0
Non-Financial Data
Human resources and occupational safety data
Number of employees
Number of fatal accidents1
Environment data
Total energy consumption (PJ)2
Greenhouse gas emissions (1,000 tons-CO2)
Total waste generated (1,000 tons)
Total waste disposed (1,000 tons)
Total water intake (million m3)3
2012
2013
49,961
51,448
3
2
150
10,100
650
25
57
147
9,870
664
22
62
2014
51,114
0
150
10,000
675
23
376
Year-on-year
change
−334
−2
3
130
11
1
—
(Note) Please refer to the separate CSR Information Supplement and our CSR website for more detailed non-financial data.
1 Number of AGC Group employees 2 1 PJ (petajoule) = 1015J (joules)
3 2012 and 2013 numbers are for AGC Group (Japan), whereas 2014 numbers are for AGC Group as a whole.
Data by Region
Net Sales (Japan/Asia)
Net Sales (Europe)
Net Sales (The Americas)
0
2012
2013
2014
(Year)
0
2012
2013
2014
(Year)
0
2012
2013
2014
(Year)
0
0
2012
2013
2014
(Year)
0
2012
2013
2014
(Year)
911.1
956.9
939.8
900
600
300
313.0
291.4
229.0
300
200
100
120
80
40
0
(Billion yen)
1,200
(Billion yen)
400
(Billion yen)
160
139.9
111.8
83.6
2012
2013
2014
(Year)
Sales Ratio4
Employees Ratio
Total Energy Consumption
Ratio
Greenhouse Gas Emissions
Ratio5
The Americas
10.0%
139.9 billion yen
The Americas
7.8%
4,000
The Americas
8.5%
13 PJ
2014
1,392.8
billion yen
2014
51,114
2014
150
PJ
The Americas
7.5%
754
thousand
tons-CO2
2014
10,000
thousand
tons-CO2
Europe
22.5%
313.0
billion yen
Japan/Asia
67.5%
939.8
billion yen
Europe
28.5%
14,563
Japan/Asia
63.7%
32,551
Europe
21.3%
32 PJ
Japan/Asia
70.2%
105 PJ
Europe
24.4%
2,450
thousand
tons-CO2
Japan/Asia
68.1%
6,840
thousand
tons-CO2
(Note) Please refer to page 21 for financial data by segment, and to the Annual Securities Report (Japanese only) or Financial Review booklet (English only) for
4 Sales by region calculated before elimination 5 Due to rounding, the entire group value does not match the total sum for all regions.
AGC Report 2015 20
Overview of the AGC Group
Outline by Business Segment
Ratio1
Operations Segment
Glass
Sales Trends1
(Billion yen)
Main Products
664.2
562.1
53%
709.0
Flat glass
(cid:127)Float glass
(cid:127)Low-emissivity (Low-E) glass
(cid:127)Double glazing glass for solar
control/heat-insulation
(cid:127)Safety glass
(cid:127)Decorative glass
(cid:127)Glass for solar power systems
Automotive glass
(cid:127)Tempered automotive glass
(cid:127)Laminated automotive glass
Corporate Data
As of the end of December 2014
Name
Head Office
Founded
September 8, 1907
Incorporated
June 1, 1950
Capital
90,873 million yen
Asahi Glass Co., Ltd. (Global brand: AGC)
Outstanding stock
1,186,705,905 shares
1-5-1, Marunouchi, Chiyoda-ku, Tokyo 100-8405 JAPAN
Employees
51,114 (consolidated),
6,132 (non-consolidated)
Consolidated Group companies
194 (156 overseas)
Outline by Regional Segments
Regional Segment
Ratio1/Sales1 and Operating Profit
Main Products
Europe
Employees
14,563
Japan/Asia
Employees
32,551
The Americas
(cid:127)Architectural glass
(cid:127)Automotive glass
(cid:127)Chemicals
(cid:127)Architectural glass
(cid:127)Automotive glass
(cid:127)Display glass
(cid:127)Electronic materials
(cid:127)Chemicals
(cid:127)Ceramics
(cid:127)Architectural glass
(cid:127)Automotive glass
(cid:127)Electronic materials
(cid:127)Chemicals
Percentage
of sales
by region
23%
Sales
Operating
profit
313
–3.8
billion yen
billion yen
Percentage
of sales
by region
67%
Sales
Operating
profit
939.8
103.6
billion yen
billion yen
Percentage
of sales
by region
10%
Sales
Operating
profit
133.9
–4.9
billion yen
billion yen
Electronics
Chemicals
Ceramics/
Other
2012
2013
2014 (Year)
341.4
334.7
292.9
Display
(cid:127)Glass substrates for TFT-LCDs
(cid:127)Specialty glass for display applications
(cid:127)Glass substrates for display devices
(cid:127)Display-related materials
Electronics materials and parts
(cid:127)Tone correction filters for digital cameras
(cid:127)CMP slurry
(cid:127)Synthetic quartz glass
(cid:127)Glass frit and paste
(cid:127)Glass molded lenses
2012
2013
2014 (Year)
Etc.
314.7
288.0
254.1
Chlor-alkali & urethane
(cid:127)Raw materials for vinyl chloride monomer
and polymer
(cid:127)Caustic soda
(cid:127)Urethane materials
Fluorine & specialty chemicals
(cid:127)Fluoropolymers/films
(cid:127)Fluorinated water and oil repellents
(cid:127)Pharmaceutical and agrochemical
intermediates and active ingredients
Iodine-related products
2012
2013
2014 (Year)
Etc.
33.1
32.3
31.6
Ceramics
(cid:127)Various refractory materials
(cid:127)Fine ceramics
(cid:127)Sputtering targets
Logistics/Engineering
22%
23%
2%
1 All numeric data is based on International Financial Reporting Standards (IFRS). The figures given for each business are sales to external customers.
1 All numeric data is based on International Financial Reporting Standards (IFRS). The figures given for each business are sales to external customers.
21
AGC Report 2015
AGC Report 2015 22
2012
2013
2014 (Year)
Employees
4,000
Name
Head Office
Founded
Consolidated Group companies
194 (156 overseas)
Incorporated
June 1, 1950
Capital
90,873 million yen
Corporate Data
As of the end of December 2014
Asahi Glass Co., Ltd. (Global brand: AGC)
Outstanding stock
1,186,705,905 shares
1-5-1, Marunouchi, Chiyoda-ku, Tokyo 100-8405 JAPAN
Employees
September 8, 1907
51,114 (consolidated),
6,132 (non-consolidated)
Overview of the AGC Group
Outline by Business Segment
Operations Segment
Ratio1
Sales Trends1
(Billion yen)
Main Products
Glass
709.0
Flat glass
(cid:127)Float glass
664.2
562.1
(cid:127)Low-emissivity (Low-E) glass
(cid:127)Double glazing glass for solar
control/heat-insulation
(cid:127)Safety glass
(cid:127)Decorative glass
(cid:127)Glass for solar power systems
Automotive glass
(cid:127)Tempered automotive glass
(cid:127)Laminated automotive glass
2012
2013
2014 (Year)
341.4
334.7
Display
(cid:127)Glass substrates for TFT-LCDs
292.9
(cid:127)Specialty glass for display applications
(cid:127)Glass substrates for display devices
(cid:127)Display-related materials
Electronics materials and parts
(cid:127)Tone correction filters for digital cameras
(cid:127)CMP slurry
(cid:127)Synthetic quartz glass
(cid:127)Glass frit and paste
(cid:127)Glass molded lenses
2012
2013
2014 (Year)
Etc.
Chlor-alkali & urethane
(cid:127)Raw materials for vinyl chloride monomer
314.7
288.0
254.1
and polymer
(cid:127)Caustic soda
(cid:127)Urethane materials
Fluorine & specialty chemicals
(cid:127)Fluoropolymers/films
(cid:127)Fluorinated water and oil repellents
(cid:127)Pharmaceutical and agrochemical
intermediates and active ingredients
Iodine-related products
2012
2013
2014 (Year)
Etc.
33.1
32.3
31.6
Ceramics
(cid:127)Various refractory materials
(cid:127)Fine ceramics
(cid:127)Sputtering targets
Logistics/Engineering
53%
22%
23%
2%
Electronics
Chemicals
Ceramics/
Other
Outline by Regional Segments
Regional Segment
Ratio1/Sales1 and Operating Profit
Europe
Percentage
of sales
by region
23%
Sales
Operating
profit
313
–3.8
billion yen
billion yen
Employees
14,563
Japan/Asia
Employees
32,551
The Americas
Percentage
of sales
by region
67%
Sales
Operating
profit
939.8
103.6
billion yen
billion yen
Percentage
of sales
by region
10%
Sales
Operating
profit
133.9
–4.9
billion yen
billion yen
Main Products
(cid:127)Architectural glass
(cid:127)Automotive glass
(cid:127)Chemicals
(cid:127)Architectural glass
(cid:127)Automotive glass
(cid:127)Display glass
(cid:127)Electronic materials
(cid:127)Chemicals
(cid:127)Ceramics
(cid:127)Architectural glass
(cid:127)Automotive glass
(cid:127)Electronic materials
(cid:127)Chemicals
1 All numeric data is based on International Financial Reporting Standards (IFRS). The figures given for each business are sales to external customers.
1 All numeric data is based on International Financial Reporting Standards (IFRS). The figures given for each business are sales to external customers.
21
AGC Report 2015
AGC Report 2015 22
2012
2013
2014 (Year)
Employees
4,000
Business Outline
The AGC Group is engaged in the glass business with a focus on flat glass and
automotive glass, and maintains a leading global share in both areas. Its flat glass
product lineup consists of float flat glass, fabricated glass for architectural use,
decorative glass, glass for solar power systems and other products tailored to the
needs of each region. The Group is also committed to the development and sale
of glass products that provide comfort and reduced environmental impact, such
as products with heat insulation, shielding and other energy efficiency functions,
and anti-condensation and anti-reflective properties.
In the automotive glass business, the AGC Group makes use of its global mar-
keting networks and cutting-edge technologies to pursue values such as safety,
design, comfort and environmental performance. It provides high value-added
products, including UV cut glass, infrared cut glass and glass antennas.
Summary of Fiscal 2014
Shipments of architectural glass increased from the previous period in all regions.
Although sales prices were down in Eastern Europe and remained at a lower level, the
trend was positive on the whole. Also affected by the depreciation of the Japanese
yen, the sales of architectural glass increased year on year. Shipments of automotive
glass were affected by a decline in the number of auto production in some regions,
but on the whole, the trend was positive, and shipments increased year on year. In
addition, the weak yen helped to increase sales as compared to the previous period.
As a result, sales in the glass business in 2014 increased to 712.7 billion yen, up
45.5 billion yen (6.8%) from the previous period. In terms of operating profit, in addi-
tion to increased sales from architectural glass and automotive glass, structural
reforms in the architectural glass business, including the optimization of production
systems in Russia and Europe and the transfer of the North American fabricated
glass business for commercial buildings, resulted in an improvement of 13.6 billion
yen for a total of 600 million yen.
Low emissivity (Low-E) double glazing unit
Vitro Color Glass™ and Lacobel™
for interior wall cladding
Glass
We provide diverse products to meet regional needs around the world
as a leading flat glass and automotive glass manufacturer.
Europe
Belgium
AGC Glass Europe S.A.
AGC Glass Europe Sales S.A.
AGC Automotive Europe S.A.
AGC Automotive Belgium S.A.
AGC Flat Glass Nederland B.V.
AGC Glass UK Ltd.
Russia
France
Italy
Netherland
U.K.
Czech Republic AGC Flat Glass Czech a.s., clen AGC Group
AGC Automotive Czech a.s.
OJSC AGC Bor Glassworks
AGC Flat Glass Klin LLC
AGC France SAS
AGC Flat Glass Italia S.r.l
AGC Automotive Italia S.r.l
AGC Flat Glass Iberica S.A.
AGC Glass Germany GmbH
Interpane Glas Industrie AG
AGC Glass Hungary Ltd.
AGC Gdansk Sp. z o.o.
AGC Otomotiv Adapazari Üretim
Sanayi Ve Ticaret
Anonim Sirketi
Hungary
Poland
Turkey
Spain
Germany
23
AGC Report 2015
Japan
The Americas
AGC Glass Products Co., Ltd.
AGC Glass Kenzai Co., Ltd.
AGC Okinawa Glass Kenzai Co., Ltd.
AGC Amenitech Co., Ltd.
Ryugasaki Glass Co., Ltd.
AGC Fabritech Co., Ltd.
AGC Automotive AMC Co., Ltd.
AGC Automotive Window Systems Co., Ltd.
Autoglass Co., Ltd.
U.S.A.
AGC Flat Glass North America, Inc.
AGC Soda Corporation
AGC Automotive Americas Co.
AGC Automotive Americas R&D, Inc.
Canada AGC Flat Glass North America, Ltd.
AGC Automotive Canada, Inc.
Mexico AGC Automotive Mexico S. de R.L. de C.V.
AGC Automotive Glass Mexico S.A. de C.V.
AGC Glass Brazil, Inc.
Brazil
Asia
Thailand
AGC Flat Glass (Thailand) Public Co., Ltd.
AGC Automotive (Thailand) Co., Ltd.
Indonesia PT Asahimas Flat Glass Tbk.
Philippines AGC Flat Glass Philippines Inc.
China
AGC Automotive Philippines Inc.
AGC Flat Glass (Dalian) Co., Ltd.
AGC Flat Glass (Suzhou) Co., Ltd.
AGC Flat Glass Protech (Shenzhen) Co., Ltd.
AGC Flat Glass (Hong Kong) Co., Ltd.
AGC Automotive China Co., Ltd.
AGC Automotive Foshan Co., Ltd.
Beijing Kuayian Car Glass Sales & Service Co., Ltd.
Sales Trends1
(Billion yen)
800
709.0
664.2
562.1
Trends in Operating Profit
(Billion yen)
0.6
–0.7
“UV Verre Premium™” series for automotive glass
600
400
200
0
5
0
–5
–10
–15
(Note) As of December 2014
1 Sales to external customers.
2012
2013
2014
(Year)
2012
2014
(Year)
-13.1
2013
Clearsight
Ordinary float glass
Clearsight™
Low reflection glass that minimizes background
reflections on glass
AGC Report 2015 24
Business Outline
The AGC Group is engaged in the glass business with a focus on flat glass and
automotive glass, and maintains a leading global share in both areas. Its flat glass
product lineup consists of float flat glass, fabricated glass for architectural use,
decorative glass, glass for solar power systems and other products tailored to the
needs of each region. The Group is also committed to the development and sale
of glass products that provide comfort and reduced environmental impact, such
as products with heat insulation, shielding and other energy efficiency functions,
and anti-condensation and anti-reflective properties.
In the automotive glass business, the AGC Group makes use of its global mar-
keting networks and cutting-edge technologies to pursue values such as safety,
design, comfort and environmental performance. It provides high value-added
products, including UV cut glass, infrared cut glass and glass antennas.
Summary of Fiscal 2014
Shipments of architectural glass increased from the previous period in all regions.
Although sales prices were down in Eastern Europe and remained at a lower level, the
trend was positive on the whole. Also affected by the depreciation of the Japanese
yen, the sales of architectural glass increased year on year. Shipments of automotive
glass were affected by a decline in the number of auto production in some regions,
but on the whole, the trend was positive, and shipments increased year on year. In
addition, the weak yen helped to increase sales as compared to the previous period.
As a result, sales in the glass business in 2014 increased to 712.7 billion yen, up
45.5 billion yen (6.8%) from the previous period. In terms of operating profit, in addi-
tion to increased sales from architectural glass and automotive glass, structural
reforms in the architectural glass business, including the optimization of production
systems in Russia and Europe and the transfer of the North American fabricated
glass business for commercial buildings, resulted in an improvement of 13.6 billion
yen for a total of 600 million yen.
Low emissivity (Low-E) double glazing unit
Vitro Color Glass™ and Lacobel™
for interior wall cladding
23
AGC Report 2015
(Note) As of December 2014
1 Sales to external customers.
Sales Trends1
(Billion yen)
800
709.0
664.2
600
400
200
0
562.1
2012
2013
2014
(Year)
Trends in Operating Profit
(Billion yen)
“UV Verre Premium™” series for automotive glass
5
0
–5
–10
–15
0.6
–0.7
-13.1
2013
2012
2014
(Year)
Clearsight
Ordinary float glass
Clearsight™
Low reflection glass that minimizes background
reflections on glass
AGC Report 2015 24
Glass
We provide diverse products to meet regional needs around the world
as a leading flat glass and automotive glass manufacturer.
Europe
Japan
The Americas
Belgium
AGC Glass Europe S.A.
AGC Glass Europe Sales S.A.
AGC Automotive Europe S.A.
AGC Automotive Belgium S.A.
Netherland
AGC Flat Glass Nederland B.V.
U.K.
AGC Glass UK Ltd.
AGC Glass Products Co., Ltd.
AGC Glass Kenzai Co., Ltd.
AGC Okinawa Glass Kenzai Co., Ltd.
AGC Amenitech Co., Ltd.
Ryugasaki Glass Co., Ltd.
AGC Fabritech Co., Ltd.
Czech Republic AGC Flat Glass Czech a.s., clen AGC Group
AGC Automotive AMC Co., Ltd.
AGC Automotive Czech a.s.
AGC Automotive Window Systems Co., Ltd.
Russia
OJSC AGC Bor Glassworks
Autoglass Co., Ltd.
U.S.A.
AGC Flat Glass North America, Inc.
AGC Soda Corporation
AGC Automotive Americas Co.
AGC Automotive Americas R&D, Inc.
Canada AGC Flat Glass North America, Ltd.
AGC Automotive Canada, Inc.
Mexico AGC Automotive Mexico S. de R.L. de C.V.
AGC Automotive Glass Mexico S.A. de C.V.
Brazil
AGC Glass Brazil, Inc.
France
Italy
AGC Flat Glass Klin LLC
AGC France SAS
AGC Flat Glass Italia S.r.l
AGC Automotive Italia S.r.l
Spain
AGC Flat Glass Iberica S.A.
Germany
AGC Glass Germany GmbH
Interpane Glas Industrie AG
Hungary
AGC Glass Hungary Ltd.
Poland
Turkey
AGC Gdansk Sp. z o.o.
AGC Otomotiv Adapazari Üretim
Sanayi Ve Ticaret
Anonim Sirketi
Asia
Thailand
AGC Flat Glass (Thailand) Public Co., Ltd.
AGC Automotive (Thailand) Co., Ltd.
Indonesia PT Asahimas Flat Glass Tbk.
Philippines AGC Flat Glass Philippines Inc.
AGC Automotive Philippines Inc.
China
AGC Flat Glass (Dalian) Co., Ltd.
AGC Flat Glass (Suzhou) Co., Ltd.
AGC Flat Glass Protech (Shenzhen) Co., Ltd.
AGC Flat Glass (Hong Kong) Co., Ltd.
AGC Automotive China Co., Ltd.
AGC Automotive Foshan Co., Ltd.
Beijing Kuayian Car Glass Sales & Service Co., Ltd.
Glass
Glass Company President Message: Growth Strategy
We are working to improve our earning capacity
by focusing on the optimization of our global production system
and on adding greater value to products.
Sales Expansion Orientation
Business Goals
Architectural glass:
Provide products that correspond to needs
in all countries and regions while improving
profitability through better asset efficiency
Automotive glass:
Further reinforce our position as the global
market leader
New
products
and
services
Existing
products
and
services
Approach 2
(Example)
Architectural glass:
Products that pursue environmental
performance and comfort
Automotive glass:
Products with high added value
such as safety, comfort and
environmental performance
Approach 3
Secure new markets and
applications for
new products and services
AGC Now
Products and services:
Architectural glass,
automotive glass,
industrial glass
Markets:
Japan, Asia, Europe, the Americas
Approach 1
(Example)
Architectural glass:
Southeast Asia, Middle East
Automotive glass:
Respond to automobile
manufacturers’ globalization
Yoshiaki Tamura
Glass Company President
Existing markets and applications
New markets and applications
Building Optimal Production Systems and Business Models
Tailored to Regions and Expanding the Architectural Glass
Business in Growth Markets
Solidifying the World’s No.1 Automotive Glass Market
Position through Robust R&D Capability and Global R&D
Development and Production Systems
The functions and performance sought from architectural glass
products differ by climate, structural considerations and lifestyle
culture. Also, the structure of construction industries and materi-
als supply chains also differs from country to country. To accom-
modate these differences, it is necessary to build optimal busi-
ness models for each country and region around the world.
To improve future earnings capacity, we will set a focus on
developing and expanding business in growth markets, including
those in Southeast Asia and the Middle East. And while doing so,
we will continue strength-building and structural reform initia-
tives. For example, instead of building production facilities all by
ourselves, we will make use of joint ventures and build rational
and effective production and sales frameworks adapted to local
market characteristics. Specifically, we are planning to reinforce
our float glass production in Indonesia, and also we are working
to disseminate highly energy-efficient Low-E double glazing glass
in Vietnam and Singapore. In addi-
tion, we have established a joint
venture coating company with
Saudi Arabia’s Obeikan Co., and
will begin business in the Middle
East market.
Skyscraper district in Indonesia
(Concept photo)
In the automotive glass business, we strive to maintain and solid-
ify our 30% share in the automotive glass industry—a leading
market position globally. To this end, we are working to differen-
tiate ourselves from other companies by enhancing our R&D
capacity to develop high value-added products that support the
evolution of cars and to strengthen product development and
production systems on a global scale.
With regard to the development of high value-added products,
we have released various high-performance products to the
market. For example, UV Verre Premium Cool on™ cuts ultraviolet
and infrared rays, making car interiors more comfortable and con-
tributing to a reduced environmental load by offering greater air
conditioner efficiency. Also, WONDERLITE™ is equipped with a
light-control function in addition to UV and IR protection. In the
future, we will continue to focus on the technological develop-
ment of automotive glass with an eye to furthering the evolution
of automobiles through environmental performance and the pur-
suit of safety and comfort.
In addition, in response to the globalization of auto manufac-
turers’ product development and production systems, we have
strengthened our R&D and production systems in Brazil, China
and Mexico.
Through these initiatives, we are working toward an operat-
ing profit ratio of 5% or more for its glass business in fiscal 2017.
Approach 1
Existing
Products to
New Markets
Joint Venture Established in Saudi Arabia,
Architectural Glass Business Initiated in the Middle East Market
In recent years, the architectural glass market in the Middle East
has continued to grow at an annual rate of approximately 4%.
In July 2014, AGC Glass Europe (headquartered in Belgium,
hereafter “AGEU”), came to a mutual agreement with the Saudi
Arabian glass manufacturer Obeikan Glass Company (hereafter
“Obeikan”) for the establishment of a joint architectural glass coat-
ing business venture. A processing line for architectural glass coat-
ing is currently under construction inside the Obeikan plant, which
is located in Saudi Arabia’s Yanbu City, and production is sched-
uled to begin in early 2016.
While using the synergies generated by AGEU, which is highly
skilled in coating technologies vital to the manufacture of
high-performance glass, and Obeikan, which has the largest float
facilities in the Middle East and an overwhelming presence in the
local glass industry, the new company will increase its presence in
the Middle East’s architectural glass market and steadily respond
to the area’s vigorous demand.
Managers from both companies who attended the signing ceremony
Approach 2
New Products to
Existing Markets
AGC‘s WONDERLITE™ Selected for Use in
Largest-ever Light Control Glass Roofs on European Luxury Cars
Panoramic glass roofs equipped with WONDERLITE™ technol-
mode. Through effective integration of its light control and spe-
ogy change their color from transparent to dark blue just by
cial coating technologies, the product provides drivers and pas-
pressing a button.
sengers with an optimal driving environment and contributes
The light-control technology was developed by an R&D
directly to reducing the need for air-conditioning, thus lowering
team in Japan, while a development team in Europe applied
fuel consumption.
Normal mode
Light-shielding mode
the technology in large-size glass roofs for luxury automobiles.
WONDERLITE™ has been available as an option on luxury cars,
on the European and North American markets since Septem-
ber 2014.
Covering an area three times larger than the conventional prod-
ucts, the large-sized light control glass roof affords a unique
open-air feeling whatever the outside conditions, and dramatically
increases comfort inside the car.
WONDERLITE™ has been applied with a special coating
technology for solar control, which filters out sunburn-causing
ultraviolet rays and warming infrared rays even in transparent
Light-control glass WONDERLITE™
Daimler copyright all rights reserved.
Daimler copyright all rights reserved.
25
AGC Report 2015
AGC Report 2015 26
Glass
Glass Company President Message: Growth Strategy
We are working to improve our earning capacity
by focusing on the optimization of our global production system
and on adding greater value to products.
Sales Expansion Orientation
Business Goals
Architectural glass:
Provide products that correspond to needs
in all countries and regions while improving
profitability through better asset efficiency
Automotive glass:
market leader
Further reinforce our position as the global
New
products
and
services
Existing
products
and
services
Approach 2
(Example)
Architectural glass:
Products that pursue environmental
performance and comfort
Automotive glass:
Products with high added value
such as safety, comfort and
environmental performance
Approach 3
Secure new markets and
applications for
new products and services
AGC Now
Products and services:
Architectural glass,
automotive glass,
industrial glass
Markets:
Japan, Asia, Europe, the Americas
Approach 1
(Example)
Architectural glass:
Southeast Asia, Middle East
Automotive glass:
Respond to automobile
manufacturers’ globalization
Yoshiaki Tamura
Glass Company President
Existing markets and applications
New markets and applications
Building Optimal Production Systems and Business Models
Solidifying the World’s No.1 Automotive Glass Market
Tailored to Regions and Expanding the Architectural Glass
Position through Robust R&D Capability and Global R&D
Business in Growth Markets
Development and Production Systems
The functions and performance sought from architectural glass
In the automotive glass business, we strive to maintain and solid-
products differ by climate, structural considerations and lifestyle
ify our 30% share in the automotive glass industry—a leading
culture. Also, the structure of construction industries and materi-
market position globally. To this end, we are working to differen-
als supply chains also differs from country to country. To accom-
tiate ourselves from other companies by enhancing our R&D
modate these differences, it is necessary to build optimal busi-
capacity to develop high value-added products that support the
ness models for each country and region around the world.
evolution of cars and to strengthen product development and
To improve future earnings capacity, we will set a focus on
production systems on a global scale.
developing and expanding business in growth markets, including
With regard to the development of high value-added products,
those in Southeast Asia and the Middle East. And while doing so,
we have released various high-performance products to the
we will continue strength-building and structural reform initia-
market. For example, UV Verre Premium Cool on™ cuts ultraviolet
tives. For example, instead of building production facilities all by
and infrared rays, making car interiors more comfortable and con-
ourselves, we will make use of joint ventures and build rational
tributing to a reduced environmental load by offering greater air
and effective production and sales frameworks adapted to local
conditioner efficiency. Also, WONDERLITE™ is equipped with a
market characteristics. Specifically, we are planning to reinforce
light-control function in addition to UV and IR protection. In the
our float glass production in Indonesia, and also we are working
future, we will continue to focus on the technological develop-
to disseminate highly energy-efficient Low-E double glazing glass
ment of automotive glass with an eye to furthering the evolution
in Vietnam and Singapore. In addi-
tion, we have established a joint
venture coating company with
Saudi Arabia’s Obeikan Co., and
will begin business in the Middle
East market.
25
AGC Report 2015
of automobiles through environmental performance and the pur-
suit of safety and comfort.
In addition, in response to the globalization of auto manufac-
turers’ product development and production systems, we have
strengthened our R&D and production systems in Brazil, China
and Mexico.
Skyscraper district in Indonesia
(Concept photo)
Through these initiatives, we are working toward an operat-
ing profit ratio of 5% or more for its glass business in fiscal 2017.
Approach 1
Existing
Products to
New Markets
Joint Venture Established in Saudi Arabia,
Architectural Glass Business Initiated in the Middle East Market
In recent years, the architectural glass market in the Middle East
has continued to grow at an annual rate of approximately 4%.
In July 2014, AGC Glass Europe (headquartered in Belgium,
hereafter “AGEU”), came to a mutual agreement with the Saudi
Arabian glass manufacturer Obeikan Glass Company (hereafter
“Obeikan”) for the establishment of a joint architectural glass coat-
ing business venture. A processing line for architectural glass coat-
ing is currently under construction inside the Obeikan plant, which
is located in Saudi Arabia’s Yanbu City, and production is sched-
uled to begin in early 2016.
While using the synergies generated by AGEU, which is highly
skilled in coating technologies vital to the manufacture of
high-performance glass, and Obeikan, which has the largest float
facilities in the Middle East and an overwhelming presence in the
local glass industry, the new company will increase its presence in
the Middle East’s architectural glass market and steadily respond
to the area’s vigorous demand.
Managers from both companies who attended the signing ceremony
Approach 2
New Products to
Existing Markets
AGC‘s WONDERLITE™ Selected for Use in
Largest-ever Light Control Glass Roofs on European Luxury Cars
Panoramic glass roofs equipped with WONDERLITE™ technol-
ogy change their color from transparent to dark blue just by
pressing a button.
The light-control technology was developed by an R&D
team in Japan, while a development team in Europe applied
the technology in large-size glass roofs for luxury automobiles.
WONDERLITE™ has been available as an option on luxury cars,
on the European and North American markets since Septem-
ber 2014.
Covering an area three times larger than the conventional prod-
ucts, the large-sized light control glass roof affords a unique
open-air feeling whatever the outside conditions, and dramatically
increases comfort inside the car.
WONDERLITE™ has been applied with a special coating
technology for solar control, which filters out sunburn-causing
ultraviolet rays and warming infrared rays even in transparent
mode. Through effective integration of its light control and spe-
cial coating technologies, the product provides drivers and pas-
sengers with an optimal driving environment and contributes
directly to reducing the need for air-conditioning, thus lowering
fuel consumption.
Normal mode
Light-shielding mode
Light-control glass WONDERLITE™
Daimler copyright all rights reserved.
Daimler copyright all rights reserved.
AGC Report 2015 26
Business Outline
In the electronics business, the AGC Group offers high value-added products
that support the evolution of display devices and electronic equipment in the
fields of display and electronic components.
In the display business, the AGC Group boasts a leading market share for
TFT-LCD glass substrates. By leveraging the Group’s unique manufacturing
methods and advanced production techniques, the AGC Group strives to
increase its global competitiveness with a focus on the research and develop-
ment of materials for next-generation image display devices.
In the field of electronic components, the AGC Group contributes to the evo-
lution of electronic devices with a lineup of synthetic silica glass, high purity
silicon carbide and other semiconductor process components, tone correction
filters for smartphones and digital cameras and glass substrates for hard discs.
Summary of Fiscal 2014
While shipments of LCD glass substrates and specialty glass for display applica-
tions increased year on year, sales prices fell in comparison for the period. Plasma
display panel-related products were affected due to production suspensions by
major customers, resulting in a large reduction of shipments. Shipments of elec-
tronics components increased from the previous period, along with optoelec-
tronics materials and semiconductor related products.
As a result, sales in the Electronics business for this period were 297.7 billion
yen, down 48.3 billion yen (14.0%) from the previous period. Due to the decline in
sales prices of glass substrates for liquid crystal displays and the decreased prof-
itability of some overseas subsidiaries as a result of the weak yen, operating prof-
its were 36.2 billion yen, down 37.9 billion yen (51.1%) from the previous period.
Sales Trends1
(Billion yen)
400
341.4
334.7
292.9
Trends in Operating Profit
(Billion yen)
100
84.4
74.1
300
200
100
0
75
50
25
0
36.2
“Dragontrail™ X” specialty glass for chemical
strengthening
Ultra-low thermal shrinkage glass substrate AN
Wizus™
Tone correction filters for digital cameras
Electronics
Leveraging unique manufacturing methods and production technology,
we will continue to offer high value-added products and
support the evolution of the display and electronics industries.
Japan
AGC Display Glass Yonezawa Co., Ltd.
AGC Electronics Co., Ltd.
AGC Techno Glass Co., Ltd.
AGC Micro Glass Co., Ltd.
AGC Polycarbonate Co., Ltd.
Optical Coatings Japan Co., Ltd.
The Americas
U.S.A. AGC Electronics America, Inc.
Asia
Thailand
AGC Techno Glass (Thailand) Co., Ltd.
AGC Micro Glass (Thailand) Co., Ltd.
Indonesia PT IWAKI Glass Indonesia
Taiwan
China
Korea
PT Cahayatiara Mustika Scientific Indonesia
AGC Display Glass Taiwan Co., Ltd.
AGC Electronics Taiwan Co., Ltd.
AGC Glass Substrate (Hong Kong) Co., Ltd.
AGC Glass Substrate (Guangdong) Co., Ltd.
AGC Display Glass (Kunshan) Co., Ltd.
AGC Display Glass (Shenzhen) Co., Ltd.
Hanwook Techno Glass Co., Ltd.
Asahi Glass Fine Techno Korea Co., Ltd.
Asahi PD Glass Korea Co., Ltd.
AGC Display Glass Ochang Co., Ltd.
27
AGC Report 2015
(Note) As of December 2014
1 Sales to external customers.
2012
2013
2014
(Year)
2012
2013
2014
(Year)
Ultra-thin flat glass SPOOL™
AGC Report 2015 28
Business Outline
In the electronics business, the AGC Group offers high value-added products
that support the evolution of display devices and electronic equipment in the
fields of display and electronic components.
In the display business, the AGC Group boasts a leading market share for
TFT-LCD glass substrates. By leveraging the Group’s unique manufacturing
methods and advanced production techniques, the AGC Group strives to
increase its global competitiveness with a focus on the research and develop-
ment of materials for next-generation image display devices.
In the field of electronic components, the AGC Group contributes to the evo-
lution of electronic devices with a lineup of synthetic silica glass, high purity
silicon carbide and other semiconductor process components, tone correction
filters for smartphones and digital cameras and glass substrates for hard discs.
Summary of Fiscal 2014
While shipments of LCD glass substrates and specialty glass for display applica-
tions increased year on year, sales prices fell in comparison for the period. Plasma
display panel-related products were affected due to production suspensions by
major customers, resulting in a large reduction of shipments. Shipments of elec-
tronics components increased from the previous period, along with optoelec-
tronics materials and semiconductor related products.
As a result, sales in the Electronics business for this period were 297.7 billion
yen, down 48.3 billion yen (14.0%) from the previous period. Due to the decline in
sales prices of glass substrates for liquid crystal displays and the decreased prof-
itability of some overseas subsidiaries as a result of the weak yen, operating prof-
its were 36.2 billion yen, down 37.9 billion yen (51.1%) from the previous period.
“Dragontrail™ X” specialty glass for chemical
strengthening
Ultra-low thermal shrinkage glass substrate AN
Wizus™
Sales Trends1
(Billion yen)
400
Trends in Operating Profit
(Billion yen)
100
Tone correction filters for digital cameras
Electronics
Leveraging unique manufacturing methods and production technology,
we will continue to offer high value-added products and
support the evolution of the display and electronics industries.
Asia
Japan
The Americas
Thailand
AGC Techno Glass (Thailand) Co., Ltd.
AGC Display Glass Yonezawa Co., Ltd.
U.S.A. AGC Electronics America, Inc.
AGC Electronics Co., Ltd.
AGC Techno Glass Co., Ltd.
AGC Micro Glass Co., Ltd.
AGC Polycarbonate Co., Ltd.
Optical Coatings Japan Co., Ltd.
AGC Micro Glass (Thailand) Co., Ltd.
Indonesia PT IWAKI Glass Indonesia
PT Cahayatiara Mustika Scientific Indonesia
Taiwan
AGC Display Glass Taiwan Co., Ltd.
AGC Electronics Taiwan Co., Ltd.
China
AGC Glass Substrate (Hong Kong) Co., Ltd.
AGC Glass Substrate (Guangdong) Co., Ltd.
AGC Display Glass (Kunshan) Co., Ltd.
AGC Display Glass (Shenzhen) Co., Ltd.
Korea
Hanwook Techno Glass Co., Ltd.
Asahi Glass Fine Techno Korea Co., Ltd.
Asahi PD Glass Korea Co., Ltd.
AGC Display Glass Ochang Co., Ltd.
27
AGC Report 2015
(Note) As of December 2014
1 Sales to external customers.
341.4
334.7
292.9
2012
2013
2014
(Year)
300
200
100
0
75
50
25
0
84.4
74.1
36.2
2012
2013
2014
(Year)
Ultra-thin flat glass SPOOL™
AGC Report 2015 28
Electronics
The Electronics Company President Message: Growth Strategy
Through the development and sales of high value-added products
that make use of our technological predominance, we are working to expand
business in growth markets and growth fields.
Sales Expansion Orientation
Business Goals
Display:
Promote cost reductions, secure earnings level
Electronic materials:
Concentrate management resources in
growth fields
New
products
and
services
Existing
products
and
services
Approach 2
(Example)
Display glass:
Ultra-thin glass carrier technology
Electronic materials:
Electronic components used in
smartphones and digital cameras
Approach 3
Secure new markets and
applications for
new products and services
AGC Now
Products and services:
Display glass,
electronic components
Markets:
Japan, Asia
Approach 1
(Example)
Display glass: China
Electronic materials: China
Yoshinori Kobayashi
Electronics Company President
Existing markets and applications
New markets and applications
Focusing on the Mobile Display Field and the Chinese Market
while Improving Productivity and Reducing Costs
Reinforcing Growth Territories including Tone Correction Filters
for Digital Cameras and Semiconductor Process Components
The global glass market for LCD panels for televisions has been
driven by the vigorous demand of the Chinese market in recent
years, and is showing growth that exceeds the growth of global
GDP. The market for glass for panels used in mobile devices is also
continuing to grow at a rate of approximately 20% per year.
Under these conditions, in the display business, we are focusing
on the field of mobile device displays, a field which continues to
show high growth, in addition to promoting cost reduction and
improved profitability by converting to highly productive high-effi-
ciency furnaces. Mobile devices and high-resolution 4K televisions
require glass for higher definition LCD panels. The AGC Group has
pursued float processes that can be used to efficiently produce
high-quality glass substrates. We will leverage the Group’s predom-
inance in this field, focusing on the development and sales of
ultra-low thermal contraction glass
and other high value-added products.
In addition, we aim to strengthen our
presence in the ever-growing Chinese
market by reinforcing local production
and responding to increasing demand
in the country.
Glass substrates for TFT-LCDs
In the electronic materials business, we aim to expand profits by
concentrating management resources in fields in which future
growth is anticipated, such as the tone correction filters and semi-
conductor process components used in digital cameras and
smartphone cameras.
Given their short history compared to lenses and other optical
components, tone correction filters in particular are a product
with much room for technological development. We are working
towards new innovation in this field while promoting cooperation
and joint development with the electronics manufacturers that
work on the final products.
Through these efforts, we aim to maintain an operating profit
ratio of 10% or more for its electronics business in fiscal 2017.
A digital camera equipped with a
tone correction filter (concept photo)
A smartphone equipped with a high-resolution panel (concept photo)
such as an increase in panel contrast.
29
AGC Report 2015
AGC Report 2015 30
Approach 1
Existing
Products to
New Markets
Realizing an End-to-End Production System
for TFT-LCD Glass Substrates in China
Demand for TFT-LCD panels is favorable and steady, centered on
panels for use in TVs and mobile devices, and in the future, an
annual market growth rate of over 5% is anticipated. In particular,
the Chinese market is predicted to account for most of the in-
crease in demand, and it was necessary to establish a system that
consistently supplies large glass substrates domestically in China.
In response to increasing demand in China, the AGC Group is
establishing product supply systems in the country. The Group first
built processing bases for large glass substrates in Kunshan City,
Jiangsu Province and Shenzhen City, Guangdong Province. Then,
in order to reinforce stable supply systems to meet further growing
demand in the market, the Group has decided to build a glass
manufacturing furnace in Huizhou, Guangdong Province for the
purpose of setting up an integrated production system in China.
The new company will be established in mid-2015, with oper-
ation scheduled to begin between the end of 2016 and the be-
ginning of 2017.
The signing ceremony for the memorandum regarding investment with the
Huizhou Zhongkai High-tech Industrial Development Zone
Approach 2
New Products to
Existing Markets
Release of AN Wizus™, Glass Substrate with the World’s Lowest Level of
Thermal Shrinkage—Contributing to Improved Quality and Manufacturing
Productivity for High-Resolution LCD Panels
In recent years, the use of high-resolution panels in smartphones
affect the quality and manufacturing productivity of the panels.
and tablets has been increasing. During the manufacturing pro-
Accordingly, glass substrates used in high-resolution LCD panels
cess for high-resolution LCD panels, glass substrates expand and
need to have a low thermal shrinkage.
shrink when exposed to heat, and such expansion and shrinkage
The AGC Group’s glass manufacturing method, called the float
process, has a long cooling period, and it can minimize thermal
shrinkage of glass substrates. The Group has been offering high
quality glass substrates for displays that have one of the lowest
thermal shrinkages in the industry.
The newly developed AN Wizus™ has an improved glass com-
position, and the percentage of thermal shrinkage is only one fifth
that of the conventional product (AN100). The AGC Group, with its
float glass technology, successfully achieved the lowest thermal
contraction in the world.
AN Wizus™ offers superior tensile strength and does not bend
easily. This and other special characteristics contribute to the im-
provement of quality and productivity in high-resolution panels,
Electronics
Business Goals
Display:
Promote cost reductions, secure earnings level
Electronic materials:
Concentrate management resources in
growth fields
New
products
and
services
Existing
products
and
services
Approach 2
(Example)
Display glass:
Ultra-thin glass carrier technology
Electronic materials:
Electronic components used in
smartphones and digital cameras
Approach 3
Secure new markets and
applications for
new products and services
AGC Now
Products and services:
Display glass,
electronic components
Markets:
Japan, Asia
Approach 1
(Example)
Display glass: China
Electronic materials: China
Yoshinori Kobayashi
Electronics Company President
Existing markets and applications
New markets and applications
Focusing on the Mobile Display Field and the Chinese Market
Reinforcing Growth Territories including Tone Correction Filters
while Improving Productivity and Reducing Costs
for Digital Cameras and Semiconductor Process Components
The global glass market for LCD panels for televisions has been
In the electronic materials business, we aim to expand profits by
driven by the vigorous demand of the Chinese market in recent
concentrating management resources in fields in which future
years, and is showing growth that exceeds the growth of global
growth is anticipated, such as the tone correction filters and semi-
GDP. The market for glass for panels used in mobile devices is also
conductor process components used in digital cameras and
continuing to grow at a rate of approximately 20% per year.
smartphone cameras.
Under these conditions, in the display business, we are focusing
Given their short history compared to lenses and other optical
on the field of mobile device displays, a field which continues to
components, tone correction filters in particular are a product
show high growth, in addition to promoting cost reduction and
with much room for technological development. We are working
improved profitability by converting to highly productive high-effi-
towards new innovation in this field while promoting cooperation
ciency furnaces. Mobile devices and high-resolution 4K televisions
and joint development with the electronics manufacturers that
require glass for higher definition LCD panels. The AGC Group has
work on the final products.
pursued float processes that can be used to efficiently produce
Through these efforts, we aim to maintain an operating profit
high-quality glass substrates. We will leverage the Group’s predom-
ratio of 10% or more for its electronics business in fiscal 2017.
inance in this field, focusing on the development and sales of
ultra-low thermal contraction glass
and other high value-added products.
In addition, we aim to strengthen our
presence in the ever-growing Chinese
market by reinforcing local production
and responding to increasing demand
The Electronics Company President Message: Growth Strategy
Through the development and sales of high value-added products
that make use of our technological predominance, we are working to expand
business in growth markets and growth fields.
Sales Expansion Orientation
Approach 1
Existing
Products to
New Markets
Realizing an End-to-End Production System
for TFT-LCD Glass Substrates in China
Demand for TFT-LCD panels is favorable and steady, centered on
panels for use in TVs and mobile devices, and in the future, an
annual market growth rate of over 5% is anticipated. In particular,
the Chinese market is predicted to account for most of the in-
crease in demand, and it was necessary to establish a system that
consistently supplies large glass substrates domestically in China.
In response to increasing demand in China, the AGC Group is
establishing product supply systems in the country. The Group first
built processing bases for large glass substrates in Kunshan City,
Jiangsu Province and Shenzhen City, Guangdong Province. Then,
in order to reinforce stable supply systems to meet further growing
demand in the market, the Group has decided to build a glass
manufacturing furnace in Huizhou, Guangdong Province for the
purpose of setting up an integrated production system in China.
The new company will be established in mid-2015, with oper-
ation scheduled to begin between the end of 2016 and the be-
ginning of 2017.
The signing ceremony for the memorandum regarding investment with the
Huizhou Zhongkai High-tech Industrial Development Zone
Approach 2
New Products to
Existing Markets
Release of AN Wizus™, Glass Substrate with the World’s Lowest Level of
Thermal Shrinkage—Contributing to Improved Quality and Manufacturing
Productivity for High-Resolution LCD Panels
In recent years, the use of high-resolution panels in smartphones
and tablets has been increasing. During the manufacturing pro-
cess for high-resolution LCD panels, glass substrates expand and
shrink when exposed to heat, and such expansion and shrinkage
in the country.
Glass substrates for TFT-LCDs
A digital camera equipped with a
tone correction filter (concept photo)
A smartphone equipped with a high-resolution panel (concept photo)
affect the quality and manufacturing productivity of the panels.
Accordingly, glass substrates used in high-resolution LCD panels
need to have a low thermal shrinkage.
The AGC Group’s glass manufacturing method, called the float
process, has a long cooling period, and it can minimize thermal
shrinkage of glass substrates. The Group has been offering high
quality glass substrates for displays that have one of the lowest
thermal shrinkages in the industry.
The newly developed AN Wizus™ has an improved glass com-
position, and the percentage of thermal shrinkage is only one fifth
that of the conventional product (AN100). The AGC Group, with its
float glass technology, successfully achieved the lowest thermal
contraction in the world.
AN Wizus™ offers superior tensile strength and does not bend
easily. This and other special characteristics contribute to the im-
provement of quality and productivity in high-resolution panels,
such as an increase in panel contrast.
29
AGC Report 2015
AGC Report 2015 30
Applied Glass Materials Business
Using unique technologies to provide glass for
Electronics and solar power systems
Versatile Development of Chemically Strengthened Specialty Glass
The AGC Group is proactively promoting the expansion of uses for the Dragontrail™ series and Leoflex™,
proposing new possibilities for glass to customers.
Applied Glass Materials General Division was established in January 2015. This new division is designed to integrate and grow
the business that had been divided between the Glass Company and the Electronics Company, and to explore and launch
new business from all the business domains of the AGC Group. With these initiatives, the AGC Group will open up the new
possibilities of glass with a unique and diverse product lineup, including cover glass for electronic devices such as smart-
phones and tablet devices, and glass substrates for solar cells.
Dragontrail™ 3 point-bending test
Dragontrail™ 3 point-bending test
Major Products
Specialty Glass for Chemical Strengthening
“Dragontrail™” series
Leoflex™
Cover glass for smartphones and tablet devices
Chemically strengthened specialty glass, developed for versatile use in
architecture, solar cells and more
Glass Substrates for Touch Panels
TCO Substrates for Photovoltaic Devices
Touch panel glass substrates for smartphones and tablet devices
TCO substrates for thin film photovoltaic devices. The unique surface
texture disperses incoming light, trapping it inside a silicon layer
31
AGC Report 2015
AGC Report 2015 32
Display Field
Dragontrail™ Used in a Wide Array of Touch Panels
from Smartphones to Personal Computers
Renowned for its superior strength, scratch resistance, and stable
supply, the Dragontrail™ series has been adopted by world-lead-
ing brands—as well as those in fast-growing countries—as cover
glass in smartphones, tablet devices and notebooks.
Automotive Field
Realizing more Comfortable and Reliable Instrument
Operability with Touch Panels
Instruments in vehicles are expected to increasingly feature touch
panel operations in the future, and technologies are being devel-
oped to integrate the operations of various equipment such as car
stereos and air conditioners. The high strength, scratch resistant,
and anti-reflective Dragontrail™ is now being adopted as a cover
glass for such console panels.
PV Power Generation Field
Easing Installation Requirements by Drastically Reducing
Solar Panel Weight
By using Leoflex™ for the cover glass, the weight of solar panels can
be reduced by half compared to previous models. This makes it possi-
ble for solar panels to be effectively utilized in spaces where installa-
tion is difficult due to weight restrictions.
Residential Field
Developing Lighter, More Compact Glass
with Improved Energy-Saving Performance
Utilizing the characteristics of Leoflex™, the AGC Group is working to
develop a lightweight, easy-to-handle, energy-efficient triple-glazed
window with markedly enhanced insulation performance.
Railway Field
Making Train Travel more Pleasant with Energy-Efficient,
Light-Modulating Windows
Leoflex™ light-control double-glazed units have been adopted for
use as window panes in express trains, resulting in energy efficiency
and a glass weight reduction of 20% or more as compared to con-
ventional glass.
Applied Glass Materials Business
Applied Glass Materials General Division was established in January 2015. This new division is designed to integrate and grow
the business that had been divided between the Glass Company and the Electronics Company, and to explore and launch
new business from all the business domains of the AGC Group. With these initiatives, the AGC Group will open up the new
possibilities of glass with a unique and diverse product lineup, including cover glass for electronic devices such as smart-
phones and tablet devices, and glass substrates for solar cells.
Dragontrail™ 3 point-bending test
Dragontrail™ 3 point-bending test
Major Products
Specialty Glass for Chemical Strengthening
“Dragontrail™” series
Leoflex™
Cover glass for smartphones and tablet devices
Chemically strengthened specialty glass, developed for versatile use in
architecture, solar cells and more
Glass Substrates for Touch Panels
TCO Substrates for Photovoltaic Devices
Using unique technologies to provide glass for
Electronics and solar power systems
Versatile Development of Chemically Strengthened Specialty Glass
The AGC Group is proactively promoting the expansion of uses for the Dragontrail™ series and Leoflex™,
proposing new possibilities for glass to customers.
Display Field
Dragontrail™ Used in a Wide Array of Touch Panels
from Smartphones to Personal Computers
Renowned for its superior strength, scratch resistance, and stable
supply, the Dragontrail™ series has been adopted by world-lead-
ing brands—as well as those in fast-growing countries—as cover
glass in smartphones, tablet devices and notebooks.
Automotive Field
Realizing more Comfortable and Reliable Instrument
Operability with Touch Panels
Instruments in vehicles are expected to increasingly feature touch
panel operations in the future, and technologies are being devel-
oped to integrate the operations of various equipment such as car
stereos and air conditioners. The high strength, scratch resistant,
and anti-reflective Dragontrail™ is now being adopted as a cover
glass for such console panels.
PV Power Generation Field
Easing Installation Requirements by Drastically Reducing
Solar Panel Weight
By using Leoflex™ for the cover glass, the weight of solar panels can
be reduced by half compared to previous models. This makes it possi-
ble for solar panels to be effectively utilized in spaces where installa-
tion is difficult due to weight restrictions.
Residential Field
Developing Lighter, More Compact Glass
with Improved Energy-Saving Performance
Utilizing the characteristics of Leoflex™, the AGC Group is working to
develop a lightweight, easy-to-handle, energy-efficient triple-glazed
window with markedly enhanced insulation performance.
Railway Field
Making Train Travel more Pleasant with Energy-Efficient,
Light-Modulating Windows
Leoflex™ light-control double-glazed units have been adopted for
use as window panes in express trains, resulting in energy efficiency
and a glass weight reduction of 20% or more as compared to con-
ventional glass.
Touch panel glass substrates for smartphones and tablet devices
TCO substrates for thin film photovoltaic devices. The unique surface
texture disperses incoming light, trapping it inside a silicon layer
31
AGC Report 2015
AGC Report 2015 32
Business Outline
Under the principle of “Chemistry for a Blue Planet,” the AGC Group’s chemicals
business keeps its environmental impact to a minimum by making complete use of
the by-products created in chemical reactions, while continuing to provide a wide
variety of products that are useful to society in areas ranging from basic chemicals
to functional chemicals. The AGC Group is also working on the recovering and
recycling of chlorofluorocarbons and other ozone-depleting substances and the
development of environmentally friendly products.
In the field of chlor-alkali and urethane, the Group manufactures caustic soda,
sodium bicarbonate and other highly versatile basic chemical products that are vital
to daily life and various industries. Urethane-related products are used in thermal-in-
sulating materials, car seats and other products that bring comfort to our lives.
In the field of fluorine/specialty chemicals, the AGC Group boasts the world’s
top-class technologies. The Group manufactures and supplies high-perfor-
mance products with extremely high heat resistance, chemical resistance and
weather resistance. In particular, the Group’s fluorinated resins (Fluon® ETFE)
enjoy a global top-class share.
The AGC Group also supplies a wide range of high-performance products in vari-
ous global industries: fluorinated resins and fluorinated elastomers in the automotive
and aircraft industries; fluoropolymer films and fluoropolymer resin for coating in the
architecture field; and multifunctional materials for the electronics and display field.
Summary of Fiscal 2014
Shipments of chlor-alkali and urethane products in the Japan and Asia region
were strong, resulting in increased sales in comparison to the previous period.
For fluorine and specialty products, shipments of fluorinated resins and of phar-
maceutical and agrochemical intermediates and active ingredients were strong,
leading to increased year-on-year sales.
As a result, sales in the Chemicals business for the current period were 317.2
billion yen, up 26.6 billion yen (9.1%) from the previous period, while operating
profits were 24.1 billion yen, up 6.4 billion yen (35.8%) from the previous period.
Sales Trends1
(Billion yen)
400
314.7
288.0
254.1
Trends in Operating Profit
(Billion yen)
24.1
16.8
17.7
300
200
100
0
30
20
10
0
“Fluon® ETFE FILM” Fluoropolymer film
“Lumiflon™” highly weather-resistant
fluoropolymer resin for coatings
Tafluprost pharmaceutical and agrochemical
intermediates and active ingredients
* A glaucoma and ocular hypertension therapeutic agent
jointly developed with Santen Pharmaceutical Co., Ltd.
Chemicals
We offer a diverse variety of products, from basic chemicals to
fluorine-based high-performance chemicals.
Our products help create an affluent, safe and secure society and
promote environmental conservation.
Europe
U.K. AGC Chemicals Europe, Ltd.
The Americas
U.S.A. AGC Chemicals Americas, Inc.
Woodward Iodine Corporation
Japan
Ise Chemicals Corporation
Keiyo Monomer Co., Ltd.
AGC Si-Tech Co., Ltd.
AGC Engineering Co., Ltd.
AGC Seimi Chemical Co., Ltd.
AGC Coat-Tech Co., Ltd.
AGC Polymer Material Co., Ltd.
AGC Green-Tech Co., Ltd.
AGC Wakasa Chemicals Co., Ltd.
AGC Matex Co., Ltd.
AGC Filtech Co., Ltd.
Hokkaido Soda Co., Ltd.
Kashima Chemical Co., Ltd.
Asia
Thailand
AGC Chemicals (Thailand) Co., Ltd.
AGC Matex (Thailand) Co., Ltd.
Indonesia PT Asahimas Chemical
China
Vietnam
AGC Chemicals Asia Pacific Pte. Ltd.
Phu My Plastics and Chemicals Co.,Ltd.
33
AGC Report 2015
(Note) As of December 2014
1 Sales to external customers.
2012
2013
2014
(Year)
2012
2013
2014
(Year)
AsahiGuard™ E Series: Fluorinated water and oil
AsahiGuard™ E Series: Fluorinated water and oil
repellents
repellents
AGC Report 2015 34
Business Outline
Under the principle of “Chemistry for a Blue Planet,” the AGC Group’s chemicals
business keeps its environmental impact to a minimum by making complete use of
the by-products created in chemical reactions, while continuing to provide a wide
variety of products that are useful to society in areas ranging from basic chemicals
to functional chemicals. The AGC Group is also working on the recovering and
recycling of chlorofluorocarbons and other ozone-depleting substances and the
development of environmentally friendly products.
In the field of chlor-alkali and urethane, the Group manufactures caustic soda,
sodium bicarbonate and other highly versatile basic chemical products that are vital
to daily life and various industries. Urethane-related products are used in thermal-in-
sulating materials, car seats and other products that bring comfort to our lives.
In the field of fluorine/specialty chemicals, the AGC Group boasts the world’s
top-class technologies. The Group manufactures and supplies high-perfor-
mance products with extremely high heat resistance, chemical resistance and
weather resistance. In particular, the Group’s fluorinated resins (Fluon® ETFE)
enjoy a global top-class share.
The AGC Group also supplies a wide range of high-performance products in vari-
ous global industries: fluorinated resins and fluorinated elastomers in the automotive
and aircraft industries; fluoropolymer films and fluoropolymer resin for coating in the
architecture field; and multifunctional materials for the electronics and display field.
Summary of Fiscal 2014
Shipments of chlor-alkali and urethane products in the Japan and Asia region
were strong, resulting in increased sales in comparison to the previous period.
For fluorine and specialty products, shipments of fluorinated resins and of phar-
maceutical and agrochemical intermediates and active ingredients were strong,
leading to increased year-on-year sales.
As a result, sales in the Chemicals business for the current period were 317.2
billion yen, up 26.6 billion yen (9.1%) from the previous period, while operating
profits were 24.1 billion yen, up 6.4 billion yen (35.8%) from the previous period.
“Fluon® ETFE FILM” Fluoropolymer film
“Lumiflon™” highly weather-resistant
fluoropolymer resin for coatings
Sales Trends1
(Billion yen)
400
Trends in Operating Profit
(Billion yen)
30
Tafluprost pharmaceutical and agrochemical
intermediates and active ingredients
* A glaucoma and ocular hypertension therapeutic agent
jointly developed with Santen Pharmaceutical Co., Ltd.
33
AGC Report 2015
(Note) As of December 2014
1 Sales to external customers.
300
200
100
0
314.7
288.0
254.1
2012
2013
2014
(Year)
20
10
0
24.1
16.8
17.7
2012
2013
2014
(Year)
AsahiGuard™ E Series: Fluorinated water and oil
AsahiGuard™ E Series: Fluorinated water and oil
repellents
repellents
AGC Report 2015 34
Chemicals
We offer a diverse variety of products, from basic chemicals to
fluorine-based high-performance chemicals.
Our products help create an affluent, safe and secure society and
promote environmental conservation.
Europe
U.K. AGC Chemicals Europe, Ltd.
The Americas
U.S.A. AGC Chemicals Americas, Inc.
Woodward Iodine Corporation
Japan
Ise Chemicals Corporation
Keiyo Monomer Co., Ltd.
AGC Si-Tech Co., Ltd.
AGC Engineering Co., Ltd.
AGC Seimi Chemical Co., Ltd.
AGC Coat-Tech Co., Ltd.
AGC Polymer Material Co., Ltd.
AGC Green-Tech Co., Ltd.
AGC Wakasa Chemicals Co., Ltd.
AGC Matex Co., Ltd.
AGC Filtech Co., Ltd.
Hokkaido Soda Co., Ltd.
Kashima Chemical Co., Ltd.
Asia
Thailand
AGC Chemicals (Thailand) Co., Ltd.
AGC Matex (Thailand) Co., Ltd.
Indonesia PT Asahimas Chemical
China
AGC Chemicals Asia Pacific Pte. Ltd.
Vietnam
Phu My Plastics and Chemicals Co.,Ltd.
Chemicals
The Chemicals Company President Message: Growth Strategy
We will work to achieve solid growth while increasing
our market predominance through proactive investment
in growth fields and growth markets.
Sales Expansion Orientation
Business Goals
Chlor-alkali and urethane:
Capture demand from the Southeast Asian market
Fluorine and specialty:
Secure increased global demand
New
products
and
services
Approach 2
(Example)
High-performance
fluorine chemicals:
HFO-1234yf
AMOLEA™
Approach 3
Secure new markets and
applications for
new products and services
Existing
products
and
services
AGC Now
Products and services:
Chlor-alkali and orethane,
fluorine and specialty
Markets:
Japan, Asia, Europe, the Americas
Approach 1
(Example)
Chlor-alkali:
Expand supply to Indonesia,
Vietnam and the rest of
Southeast Asia
The Phu My Plastics and Chemicals plant, the latest new production base
after Thailand and Indonesia
Masao Nemoto
Chemicals Company President
Existing markets and applications
New markets and applications
Reinforcing Local Production and Sales Systems in Response
to Expanding Demand in the Southeast Asian Market
Exploring Markets for High-Performance Fluorine Chemicals
by Strengthening Technical Support on a Global Scale
As Indonesia, Thailand and other ASEAN countries continue to
grow, demand for chlor-alkali products is expected to continue
expanding. The AGC Group began local production and sales of
chlor-alkali in Thailand in 1964, and in Indonesia in 1986, and estab-
lished its presence as the manufacturer with the top market share of
caustic soda in Southeast Asia. In order to respond to the growing
demand across the entire Southeast Asian market in recent years,
we are enhancing the capacity of our electrolysis facility in
Indonesia, and in 2014 we acquired a leading Vietnamese vinyl
chloride resin manufacturer as a subsidiary. We will continue achiev-
ing steady growth by proactively investing in growth fields and
growth markets.
Capacity enhancement scheduled at PT Asahimas Chemical in Indonesia
35
AGC Report 2015
High-performance fluorine chemicals are highly weather resis-
tant, long lasting and have many other excellent properties.
Consequently, demand for such products is growing globally, par-
ticularly in the automotive, electronics and construction industries,
and for use in agricultural greenhouses. Global demand is antici-
pated to grow further, including in environment-related fields.
In order to firmly connect this increasing demand to business
growth, we are expanding our technical support functions in an
effort to cultivate new applications for high-performance fluo-
rine chemicals and promoting sales. In addition to opening a
technical center in China in 2014, we are planning to set up tech-
nical centers in other countries and regions in 2015. Technical
centers provide technical services, applied development and
analytical work tailored to regions’ needs in order to explore new
markets in the region.
As a promising product field, we are focusing on the develop-
ment of substitute refrigerants that have a lower environmental
load and greatly contribute to prevent-
ing global warming and the destruc-
tion of the ozone layer.
Through these initiatives, we aim to
achieve an operating profit ratio of
10% or more for its Chemicals busi-
ness in fiscal 2017.
Newly constructed
technical center in China
Approach 1
Existing
Products to
New Markets
Acquisition of Vietnamese Vinyl Chloride Company in Preparation
for Expanding Chlor-Alkali Business in Southeast Asia
Vietnam is a market with great room for growth—over half of its
chloride (PVC) market in Southeast Asia, after Indonesia and
population of approximately 90 million is under thirty—and it is
Thailand, and the demand for PVC that accompanies the country’s
anticipated to see continued stable economic growth at a rate of
economic development is expected to keep the annual growth of
over 5% annually. The country has the third largest polyvinyl
approximately 5%. In addition, increased demand for other
chlor-alkali products, such as caustic soda and hydrochloric acid, is
anticipated along with the expansion of the heavy chemical
industry in Vietnam.
In order to develop business in this promising market, in 2014
the AGC Group acquired 78% of the stock of Phu My Plastics and
Chemicals Company Ltd. (hereafter PMPC), a PVC manufacturer.
PMPC has an over 30% share in the PVC resin market in the
country, and the AGC Group’s business development in Vietnam
made a full-fledged start. By establishing a new production and
sales base in Vietnam in addition to enhancing the production
capacity in Indonesia, the AGC Group will work to expand its
Southeast Asian chlor-alkali business even further.
Approach 2
New Products to
Existing Markets
HFO-1234yf and AMOLEA™: Low-Environmental Impact Refrigerants
with Reduced Influence on Climate Change
Hydrofluorocarbons (HFC) are used as refrigerants in air condi-
tioners and cars. However, since their global warming potential
(GWP) is high, their use is being increasingly restricted in Japan,
Europe, North America, and the rest of the world. The AGC
Group is the world’s first company to establish the production
technology for the next-generation automotive refrigerant
HFO-1234yf, one that has an extremely low environmental load
with a GWP that’s equal to or less than 1/1,300 the GWP of conven-
tional products1. In January 2014, the AGC Group announced that it
would supply the product to the US company Honeywell. In addi-
tion, in March 2014, the Group developed AMOLEA™, a new refrig-
erant for air conditioners whose performance is the same as con-
ventional products2, but whose GWP has been lowered to approxi-
mately 1/6. Commercial production is expected to begin in 2016.
1 As compared to the automotive refrigerant HFC-134a
2 As compared to HFC-410A
Automotive refrigerants: Comparison3
Approx.1/1,300
HFO–1234yf
Conventional
refrigerant
Automotive
refrigerant
HFC–134a
3 When the GWP of HFC-134a is 1
Air Conditioner Refrigerants: Comparison4
Approx.1/6
Conventional refrigerant
HFC-410A
Substitute
refrigerant
HFC-32
Approx.
1/2
Approx.
1/3
4 When the GWP of HFC-410A is 1
AGC Report 2015 36
Chemicals
The Chemicals Company President Message: Growth Strategy
We will work to achieve solid growth while increasing
our market predominance through proactive investment
in growth fields and growth markets.
Sales Expansion Orientation
Business Goals
Chlor-alkali and urethane:
Capture demand from the Southeast Asian market
Fluorine and specialty:
Secure increased global demand
New
products
and
services
Approach 2
(Example)
High-performance
fluorine chemicals:
HFO-1234yf
AMOLEA™
Approach 3
Secure new markets and
applications for
new products and services
Approach 1
Existing
Products to
New Markets
Acquisition of Vietnamese Vinyl Chloride Company in Preparation
for Expanding Chlor-Alkali Business in Southeast Asia
Vietnam is a market with great room for growth—over half of its
population of approximately 90 million is under thirty—and it is
anticipated to see continued stable economic growth at a rate of
over 5% annually. The country has the third largest polyvinyl
Existing
products
and
services
AGC Now
Products and services:
Chlor-alkali and orethane,
fluorine and specialty
Markets:
Japan, Asia, Europe, the Americas
Approach 1
(Example)
Chlor-alkali:
Expand supply to Indonesia,
Vietnam and the rest of
Southeast Asia
The Phu My Plastics and Chemicals plant, the latest new production base
after Thailand and Indonesia
chloride (PVC) market in Southeast Asia, after Indonesia and
Thailand, and the demand for PVC that accompanies the country’s
economic development is expected to keep the annual growth of
approximately 5%. In addition, increased demand for other
chlor-alkali products, such as caustic soda and hydrochloric acid, is
anticipated along with the expansion of the heavy chemical
industry in Vietnam.
In order to develop business in this promising market, in 2014
the AGC Group acquired 78% of the stock of Phu My Plastics and
Chemicals Company Ltd. (hereafter PMPC), a PVC manufacturer.
PMPC has an over 30% share in the PVC resin market in the
country, and the AGC Group’s business development in Vietnam
made a full-fledged start. By establishing a new production and
sales base in Vietnam in addition to enhancing the production
capacity in Indonesia, the AGC Group will work to expand its
Southeast Asian chlor-alkali business even further.
Masao Nemoto
Chemicals Company President
Existing markets and applications
New markets and applications
Reinforcing Local Production and Sales Systems in Response
Exploring Markets for High-Performance Fluorine Chemicals
to Expanding Demand in the Southeast Asian Market
by Strengthening Technical Support on a Global Scale
As Indonesia, Thailand and other ASEAN countries continue to
High-performance fluorine chemicals are highly weather resis-
grow, demand for chlor-alkali products is expected to continue
tant, long lasting and have many other excellent properties.
expanding. The AGC Group began local production and sales of
Consequently, demand for such products is growing globally, par-
chlor-alkali in Thailand in 1964, and in Indonesia in 1986, and estab-
ticularly in the automotive, electronics and construction industries,
lished its presence as the manufacturer with the top market share of
and for use in agricultural greenhouses. Global demand is antici-
caustic soda in Southeast Asia. In order to respond to the growing
pated to grow further, including in environment-related fields.
demand across the entire Southeast Asian market in recent years,
In order to firmly connect this increasing demand to business
we are enhancing the capacity of our electrolysis facility in
growth, we are expanding our technical support functions in an
Indonesia, and in 2014 we acquired a leading Vietnamese vinyl
effort to cultivate new applications for high-performance fluo-
chloride resin manufacturer as a subsidiary. We will continue achiev-
rine chemicals and promoting sales. In addition to opening a
ing steady growth by proactively investing in growth fields and
technical center in China in 2014, we are planning to set up tech-
growth markets.
nical centers in other countries and regions in 2015. Technical
centers provide technical services, applied development and
analytical work tailored to regions’ needs in order to explore new
markets in the region.
As a promising product field, we are focusing on the develop-
ment of substitute refrigerants that have a lower environmental
load and greatly contribute to prevent-
ing global warming and the destruc-
tion of the ozone layer.
Through these initiatives, we aim to
achieve an operating profit ratio of
10% or more for its Chemicals busi-
Capacity enhancement scheduled at PT Asahimas Chemical in Indonesia
ness in fiscal 2017.
Newly constructed
technical center in China
Approach 2
New Products to
Existing Markets
HFO-1234yf and AMOLEA™: Low-Environmental Impact Refrigerants
with Reduced Influence on Climate Change
Hydrofluorocarbons (HFC) are used as refrigerants in air condi-
tioners and cars. However, since their global warming potential
(GWP) is high, their use is being increasingly restricted in Japan,
Europe, North America, and the rest of the world. The AGC
Group is the world’s first company to establish the production
technology for the next-generation automotive refrigerant
HFO-1234yf, one that has an extremely low environmental load
with a GWP that’s equal to or less than 1/1,300 the GWP of conven-
tional products1. In January 2014, the AGC Group announced that it
would supply the product to the US company Honeywell. In addi-
tion, in March 2014, the Group developed AMOLEA™, a new refrig-
erant for air conditioners whose performance is the same as con-
ventional products2, but whose GWP has been lowered to approxi-
mately 1/6. Commercial production is expected to begin in 2016.
1 As compared to the automotive refrigerant HFC-134a
2 As compared to HFC-410A
Automotive refrigerants: Comparison3
Approx.1/1,300
HFO–1234yf
Conventional
refrigerant
Automotive
refrigerant
HFC–134a
3 When the GWP of HFC-134a is 1
Air Conditioner Refrigerants: Comparison4
Approx.1/6
Conventional refrigerant
HFC-410A
Approx.
1/3
4 When the GWP of HFC-410A is 1
Substitute
refrigerant
HFC-32
Approx.
1/2
35
AGC Report 2015
AGC Report 2015 36
Business Outline
The Ceramics business began in 1916 with the production of high temperature
resistant bricks for glass furnaces. At present, AGC Ceramics Co. Ltd. has adopted
the visions “Glass Ceramics Innovation” and “Green Ceramics Innovation” and is
working to create new innovations in the fields of Glass Engineering and Environ-
Sales Trends1
(Billion yen)
32.3
33.1
31.6
mental Energy.
In the field of Glass Engineering, AGC Ceramics provides high-durability,
high-performance fused cast bricks that prolong the life of glass furnaces and
contribute to energy efficiency and CO2 reduction in glass production process-
es, and solutions that make use of these bricks.
In the field of Environmental Energy, in addition to bonded refractory bricks
(both burned and unburned) used at domestic and foreign cement plants, the
company provides castable refractories that contribute to making industrial furnac-
es more energy efficient and reducing their environmental load. In addition, AGC
Ceramics is focusing on the development of products and technologies that are
easy on the environment, such as high-temperature fine ceramic fans and sputter-
ing targets for energy-saving glass.
40
30
20
10
0
2012
2013
2014
(Year)
1 Total amount for ceramics/other; sales to external
customers.
Ceramics/Other
Utilizing ceramics technologies cultivated over many years,
we offer a variety of products and solutions that contribute to innovation
in glass production processes and environmental conservation.
For the Environment
Ceramics
Japan
AGC Ceramics Co., Ltd.
AGC Plibrico Co., Ltd.
Other
Japan
AGC Research Institute, Inc.
AGC Insurance Management Co., Ltd.
AGC Finance Co., Ltd.
AGC Logistics Co., Ltd.
AGC Technology Solutions Co., Ltd.
Tokai Kogyo Co., Ltd.
Asia
Singapore AGC Ceramics Singapore Pte. Ltd.
China
Zibo Asahi Glass Alumina Materials Co., Ltd.
AGC Ceramics (Yixing) Co., Ltd.
AGC Plibrico (Dailian) Industries Co., Ltd.
Asia
Thailand
Singapore AGC Asia Pacific Pte., Ltd.
AGC Technology Solutions (Thailand) Co., Ltd.
Europe
Belgium AGC Europe S.A.
China
AGC Singapore Services Pte. Ltd.
AGC (China) Holdings Co., Ltd.
AGC Shanghai Co., Ltd.
AGC Technology Solutions (Kunshan) Co., LTD.
The Americas
U.S.A. AGC America, Inc.
AGC Capital, Inc.
A diverse lineup of castable refractories
A diverse lineup of castable refractories
Tough Coore™ Ceramic Pigment for Heat Shielding Pavement
Surfaces Alleviates Heat Island Phenomenon
Until now, the method used to counter the heat island phenomenon was to cover the entire
surface of the road with a heat-shielding coat, thereby reducing accumulated ground-level
heat. However, the harsh conditions created by cars wear away the heat-shielding material.
Under these conditions, Tough Coore™’s extraordinary hardness offers superior anti-abra-
sive performance with heat-shielding pavement surfaces.
In addition, the anti-skid color aggregate Tough Bahn™ has been widely used for purposes
of traffic safety and facilitating smoother traffic flow, and in recent years, the use of the product
as a road surface material for bicycle lanes is also increasing.
Middle two lanes: Tough Coore™ is used for heat shielding of road-surface as a heat island effect countermeasure
Left lane: Tough Bahn™ is an anti-skid surface coat for clear demarcation of bus lanes
Castable Refractories for Industrial Furnaces: Free Design,
Flexible Construction
Castable refractories are used in all types of industrial furnaces, including incinerators and alumi-
num smelting furnaces. Because construction methods can be chosen depending on the object
being constructed, complicated shapes and thin-walled objects are also possible. AGC Ceram-
ics supports the operation of industrial furnaces with a product group that features a wide vari-
ety of special features, such as abrasion resistance, corrosion resistance and high heat insulation.
High Thermal Insulating Ceramic Refractory THERMOTECT™
THERMOTECT™ is a ceramics furnace material offering high thermal insulation and resistance.
Developed with our proprietary raw material technologies, it is usable at high temperature ranges
up to 1,600ºC. It also shows long-term insulation performance under high temperatures, realizing
cost-reduction due to energy efficiency.
In addition, as it includes no materials of environmental concern, it contributes to the
improvement and safety of on-site work environments.
37
AGC Report 2015
AGC Report 2015 38
(Note) As of December 2014
THERMOTECT™
Business Outline
The Ceramics business began in 1916 with the production of high temperature
resistant bricks for glass furnaces. At present, AGC Ceramics Co. Ltd. has adopted
the visions “Glass Ceramics Innovation” and “Green Ceramics Innovation” and is
working to create new innovations in the fields of Glass Engineering and Environ-
mental Energy.
In the field of Glass Engineering, AGC Ceramics provides high-durability,
high-performance fused cast bricks that prolong the life of glass furnaces and
contribute to energy efficiency and CO2 reduction in glass production process-
es, and solutions that make use of these bricks.
In the field of Environmental Energy, in addition to bonded refractory bricks
(both burned and unburned) used at domestic and foreign cement plants, the
company provides castable refractories that contribute to making industrial furnac-
es more energy efficient and reducing their environmental load. In addition, AGC
Ceramics is focusing on the development of products and technologies that are
easy on the environment, such as high-temperature fine ceramic fans and sputter-
ing targets for energy-saving glass.
Sales Trends1
(Billion yen)
40
32.3
33.1
31.6
30
20
10
0
2012
2013
2014
(Year)
1 Total amount for ceramics/other; sales to external
customers.
Ceramics/Other
Utilizing ceramics technologies cultivated over many years,
we offer a variety of products and solutions that contribute to innovation
in glass production processes and environmental conservation.
For the Environment
Asia
Singapore AGC Ceramics Singapore Pte. Ltd.
China
Zibo Asahi Glass Alumina Materials Co., Ltd.
AGC Ceramics (Yixing) Co., Ltd.
AGC Plibrico (Dailian) Industries Co., Ltd.
Ceramics
Japan
AGC Ceramics Co., Ltd.
AGC Plibrico Co., Ltd.
Other
Japan
AGC Research Institute, Inc.
AGC Insurance Management Co., Ltd.
AGC Finance Co., Ltd.
AGC Logistics Co., Ltd.
AGC Technology Solutions Co., Ltd.
Tokai Kogyo Co., Ltd.
Asia
Europe
Thailand
AGC Technology Solutions (Thailand) Co., Ltd.
Belgium AGC Europe S.A.
Singapore AGC Asia Pacific Pte., Ltd.
AGC Singapore Services Pte. Ltd.
China
AGC (China) Holdings Co., Ltd.
AGC Shanghai Co., Ltd.
AGC Technology Solutions (Kunshan) Co., LTD.
The Americas
U.S.A. AGC America, Inc.
AGC Capital, Inc.
A diverse lineup of castable refractories
A diverse lineup of castable refractories
Tough Coore™ Ceramic Pigment for Heat Shielding Pavement
Surfaces Alleviates Heat Island Phenomenon
Until now, the method used to counter the heat island phenomenon was to cover the entire
surface of the road with a heat-shielding coat, thereby reducing accumulated ground-level
heat. However, the harsh conditions created by cars wear away the heat-shielding material.
Under these conditions, Tough Coore™’s extraordinary hardness offers superior anti-abra-
sive performance with heat-shielding pavement surfaces.
In addition, the anti-skid color aggregate Tough Bahn™ has been widely used for purposes
of traffic safety and facilitating smoother traffic flow, and in recent years, the use of the product
as a road surface material for bicycle lanes is also increasing.
Middle two lanes: Tough Coore™ is used for heat shielding of road-surface as a heat island effect countermeasure
Left lane: Tough Bahn™ is an anti-skid surface coat for clear demarcation of bus lanes
Castable Refractories for Industrial Furnaces: Free Design,
Flexible Construction
Castable refractories are used in all types of industrial furnaces, including incinerators and alumi-
num smelting furnaces. Because construction methods can be chosen depending on the object
being constructed, complicated shapes and thin-walled objects are also possible. AGC Ceram-
ics supports the operation of industrial furnaces with a product group that features a wide vari-
ety of special features, such as abrasion resistance, corrosion resistance and high heat insulation.
High Thermal Insulating Ceramic Refractory THERMOTECT™
THERMOTECT™ is a ceramics furnace material offering high thermal insulation and resistance.
Developed with our proprietary raw material technologies, it is usable at high temperature ranges
up to 1,600ºC. It also shows long-term insulation performance under high temperatures, realizing
cost-reduction due to energy efficiency.
In addition, as it includes no materials of environmental concern, it contributes to the
improvement and safety of on-site work environments.
37
AGC Report 2015
AGC Report 2015 38
(Note) As of December 2014
THERMOTECT™
New Business Creation
at the AGC Group
We aim to create new businesses that
open up the future of the AGC Group.
For the AGC Group to achieve growth over the medium and long terms, it
must continue to create new value that brings benefits to society as a materi-
als manufacturer. In this regard, Yoshinori Hirai, Senior Executive Officer and
GM of Technology General Division, explained how enhancing technologies
can open up new possibilities, and discussed his approach to developing new
businesses that will drive the AGC Group forward in the future.
Yoshinori Hirai
Senior Executive Officer and GM of Technology General Division
materials technologies in the fields of
glass, chemicals, electronics, and ceram-
ics, and production technologies includ-
ing simulation, analysis, and equipment
technologies. By interconnecting these
technologies, we create a wide range of
expert capabilities from which we offer
customers optimum solutions for their
needs. This is the AGC Group’s approach
to short- and medium-term R&D.
Step 1
Step 2
Analyze social
trends and assess
technical potential
Analyze suitability as
a company business,
and assess business
Technology
outlook
Perspective 1
Expansivity and
growth potential of
technology and market
potential
Business
outlook
Perspective 1
Suitability for an AGC
Group business
Perspective 2
Potential to sustainably
generate profits
Key areas
Next-generation
mobility
Heat management
(heat insulation,
shielding and exchange)
Next-generation
communication
(signage, etc.)
Life science
Security and safety
New energy and
new green
Leveraging Materials and Production Technologies
to Offer Business Solutions
Setting Long-term R&D Projects
by Analyzing Technological and Business Trends
The AGC Group conducts R&D with a short-, medium- or long-term outlook. For short-
For long-term research and development, the AGC Group examines social and tech-
and medium-term R&D, we aim to bolster the competitiveness of our existing busi-
nological trends projected over the next 10 to 20 years and formulates a technology
nesses. As an example of this, we have overhauled production processes and
roadmap called Technology Outlook, an analysis of what kinds of products and tech-
upgraded process technologies. These technical innovations enabled us to reduce
nologies will be in high demand in the future. To respond to such demand, we create
costs and have already led to major results, especially in our display business.
a business roadmap—called Business Outlook—after taking into consideration the
Another important approach is product and technology development that aims at
suitability of new businesses for the AGC Group, and whether they would be able to
1) securing new markets for our existing products, and 2) offering new products in
sustainably generate profits. Through this process of research and analysis, we have
existing markets—as described in our new management policy
. An exam-
set smart community related markets as an important topic for our R&D projects to
ple of the first approach is Dragontrail. We have been marketing this specialty glass for
pursue, and we are proactively pursuing technological and business development
chemical strengthening mainly in the display-related market, and we are now expand-
covering the short, medium and long terms in six areas: next-generation mobility,
ing its use in new markets, like the automotive market. As an example of our second
heat management, next-generation communication, life sciences, security and
approach, we are promoting the UV Verre Premium series to the automotive market as
safety, and new energy and new green (see pages 43 to 44 for more details).
new high-value-added products.
The AGC Group’s R&D is underpinned by an approach that connects product
What is common to both of these approaches is that they are based on solu-
development with the market. Needs are constantly changing in the marketplace
tions-oriented businesses based on the competitive advantages of the AGC Group’s
today, so unless we constantly take a market-oriented outlook to development, we
technologies. The AGC’s Group’s technological expertise extends into various fields:
will not be able to create the businesses and products that our customers want.
The AGC Group’s
Business Development Process:
Following the Technology
Outlook and Business Outlook
To develop our businesses, we place
importance on a technology road-
map that considers global trends
related to energy, natural resources
and population from a long-term per-
spective, and a business roadmap
based on analyses of the suitability of
businesses for the AGC Group and
the feasibility of commercialization.
The AGC Group’s Core Technologies
Social Value
The Evolution of Next-Generation Mobility
Materials technologies
Production technologies
Pursuing R&D while analyzing needs arising from the evolution of mobility
Glass
integration
technologies
Glass material
technologies
Coating
technologies
Fundamental technologies
Simulation
technologies
Analysis
technologies
Sensing
technologies
Fluorine and
other chemistry
technologies
Ceramic material
technologies
Process
engineering
Equipment
technologies
Value offered
by the
AGC Group
Various AGC Group products are used in vehicles, including glass antennae
and glass that blocks ultraviolet and infrared rays. In the future, vehicles and
public transportation infrastructure are expected to undergo three drastic
changes: progress in environmentally friendly vehicles, particularly electric
and fuel cell vehicles; advancements in transportation systems, such as auto-
matic driving systems; and the trend toward a so-called Internet of Things.
The AGC Group is assessing and analyzing the needs being generated by this
evolution of next-generation mobility, and carrying out meticulous research
and development on products and technologies that can help create smart
communities in which people can lead fulfilling lives in comfort and safety.
Evolution of
environmentally
friendly vehicles
(Electric and
fuel cell vehicles)
Evolution of
transportation
systems
(Driver support systems
and automatic
driving systems)
Evolution of IoT
(Development
of telematics)
39
AGC Report 2015
AGC Report 2015 40
New Business Creation
at the AGC Group
We aim to create new businesses that
open up the future of the AGC Group.
For the AGC Group to achieve growth over the medium and long terms, it
must continue to create new value that brings benefits to society as a materi-
als manufacturer. In this regard, Yoshinori Hirai, Senior Executive Officer and
GM of Technology General Division, explained how enhancing technologies
can open up new possibilities, and discussed his approach to developing new
businesses that will drive the AGC Group forward in the future.
Yoshinori Hirai
Senior Executive Officer and GM of Technology General Division
materials technologies in the fields of
glass, chemicals, electronics, and ceram-
ics, and production technologies includ-
ing simulation, analysis, and equipment
technologies. By interconnecting these
technologies, we create a wide range of
expert capabilities from which we offer
customers optimum solutions for their
needs. This is the AGC Group’s approach
to short- and medium-term R&D.
Step 1
Step 2
Key areas
Analyze social
trends and assess
technical potential
Technology
outlook
Perspective 1
Expansivity and
growth potential of
technology and market
Analyze suitability as
a company business,
and assess business
potential
Business
outlook
Perspective 1
Suitability for an AGC
Group business
Perspective 2
Potential to sustainably
generate profits
Next-generation
mobility
Heat management
(heat insulation,
shielding and exchange)
Next-generation
communication
(signage, etc.)
Life science
Security and safety
New energy and
new green
Leveraging Materials and Production Technologies
to Offer Business Solutions
Setting Long-term R&D Projects
by Analyzing Technological and Business Trends
The AGC Group conducts R&D with a short-, medium- or long-term outlook. For short-
For long-term research and development, the AGC Group examines social and tech-
and medium-term R&D, we aim to bolster the competitiveness of our existing busi-
nological trends projected over the next 10 to 20 years and formulates a technology
nesses. As an example of this, we have overhauled production processes and
roadmap called Technology Outlook, an analysis of what kinds of products and tech-
upgraded process technologies. These technical innovations enabled us to reduce
nologies will be in high demand in the future. To respond to such demand, we create
costs and have already led to major results, especially in our display business.
a business roadmap—called Business Outlook—after taking into consideration the
Another important approach is product and technology development that aims at
suitability of new businesses for the AGC Group, and whether they would be able to
1) securing new markets for our existing products, and 2) offering new products in
sustainably generate profits. Through this process of research and analysis, we have
existing markets—as described in our new management policy
. An exam-
set smart community related markets as an important topic for our R&D projects to
ple of the first approach is Dragontrail. We have been marketing this specialty glass for
pursue, and we are proactively pursuing technological and business development
chemical strengthening mainly in the display-related market, and we are now expand-
covering the short, medium and long terms in six areas: next-generation mobility,
ing its use in new markets, like the automotive market. As an example of our second
heat management, next-generation communication, life sciences, security and
approach, we are promoting the UV Verre Premium series to the automotive market as
safety, and new energy and new green (see pages 43 to 44 for more details).
new high-value-added products.
The AGC Group’s R&D is underpinned by an approach that connects product
What is common to both of these approaches is that they are based on solu-
development with the market. Needs are constantly changing in the marketplace
tions-oriented businesses based on the competitive advantages of the AGC Group’s
today, so unless we constantly take a market-oriented outlook to development, we
technologies. The AGC’s Group’s technological expertise extends into various fields:
will not be able to create the businesses and products that our customers want.
The AGC Group’s
Business Development Process:
Following the Technology
Outlook and Business Outlook
To develop our businesses, we place
importance on a technology road-
map that considers global trends
related to energy, natural resources
and population from a long-term per-
spective, and a business roadmap
based on analyses of the suitability of
businesses for the AGC Group and
the feasibility of commercialization.
The AGC Group’s Core Technologies
Social Value
The Evolution of Next-Generation Mobility
Materials technologies
Production technologies
Pursuing R&D while analyzing needs arising from the evolution of mobility
Glass
integration
technologies
Glass material
technologies
Coating
technologies
Fundamental technologies
Simulation
technologies
Analysis
Sensing
technologies
technologies
Fluorine and
other chemistry
technologies
Ceramic material
technologies
Process
engineering
Equipment
technologies
Value offered
by the
AGC Group
Various AGC Group products are used in vehicles, including glass antennae
and glass that blocks ultraviolet and infrared rays. In the future, vehicles and
public transportation infrastructure are expected to undergo three drastic
changes: progress in environmentally friendly vehicles, particularly electric
and fuel cell vehicles; advancements in transportation systems, such as auto-
matic driving systems; and the trend toward a so-called Internet of Things.
The AGC Group is assessing and analyzing the needs being generated by this
evolution of next-generation mobility, and carrying out meticulous research
and development on products and technologies that can help create smart
communities in which people can lead fulfilling lives in comfort and safety.
Evolution of
environmentally
friendly vehicles
(Electric and
fuel cell vehicles)
Evolution of
transportation
systems
(Driver support systems
and automatic
driving systems)
Evolution of IoT
(Development
of telematics)
39
AGC Report 2015
AGC Report 2015 40
New Business Creation
at the AGC Group
Taking Advantage of Open Innovation
to Renew Technologies and Create New Markets
The AGC Group is actively promoting open innovation as a means of conducting R&D.
By working together with a wide spectrum of experts from outside the Group, we are
gaining access to a more substantial range of technologies. Through such efforts, we
work to accelerate technical innovations and possibilities for new market creation, and
shorten product development lead times.
In our short- and medium-term development projects, we are pursuing joint devel-
opment and business partnerships that enable us to mutually complement technolo-
gies, products and services. On the other hand, our long-term projects cover a wide
A worksite carrying out GTNET activities in the
Silicon Valley, U.S.A.
array of technologies related to smart communities and social infrastructure. We are
collaborating with companies and research institutions through the participation in
Social Value
Tackling Problems Associated with Energy and Climate Change
Reducing CO2 emissions through
energy-saving and energy-creating products
People around the world are taking greater interest in clean energy and environ-
mental problems, especially climate change. In this context, the AGC Group is
working to reduce its CO2 emissions through environmental products, and cre-
ated an environmental slogan to reflect these efforts in 2014. To help solve the
environmental problems faced by societies, the Group is providing all kinds of
energy-saving and energy-creating products, including Low-E double glazing
glass, glass for solar power panels, low-environmental-load refrigerants, and road
surface heat-shielding materials designed to alleviate the heat island effect.
1 The AGC Group’s estimated annual CO2 emissions in 2020
CO2 emissions
CO2 reduction
in 20201
Approx.
through energy-saving
and energy-creating
13,000,000
tons
products2
Six-fold
reduction
Approx.
80,000,000
tons
2 The amount of CO2 reduction if the energy-saving and energy-creating products manufactured in 2020 are used to the end of their useful lives.
national projects and other collaborative initiatives. In Japan, the AGC Group has
already participated in 10 national projects overseen by the Ministry of Education,
Culture, Sports, Science and Technology and the Ministry of Economy, Trade and
Creating a Work Environment that Encourages Innovation
and Promotes Cross-Divisional and International Exchanges
Industry. Outside Japan, we are working to step up our open innovation activities
The main force driving the AGC Group’s R&D activities is the skills and capabilities of its
through activities such as information collection via local venture funds and investing in
expert personnel. To make the most of our human assets, we are using the Skill Map
influential venture companies in the U.S.
database of individual employees. The specialized capabilities of AGC Group employ-
In addition, the Group is also carrying out its own Global Technology Networking
ees are recorded in the database, allowing management to see what skills have been
(GTNET) activities in order to monitor trends in cutting-edge markets and to stay
acquired by employees in specific divisions and companies of the Group so they can
abreast of the latest technical information. The network activities cover three regions
effectively appoint personnel and facilitate communication.
worldwide— Southeast Asia, Europe, and North America—with respective worksites
For example, when undertaking a new project, project managers can assemble
in Singapore, Belgium and Germany, and the Silicon Valley, which is home to many
leading electronics and IT firms as well as R&D centers of automakers. In this capacity,
we have been working to conduct research and make proposals regarding technologi-
cal trends and environmental and safety regulations locally. In Singapore, for instance,
we are participating in a green building consortium organized by the Singapore
Economic Development Board, through which we are using energy-saving glass and
optimal teams by quickly and accurately
determining which employees have the
necessary skills, and which countries and
divisions they work in. In addition, by iden-
tifying employees with common skills
existing outside of a company or depart-
other products to help realize environmentally friendly buildings in collaboration with
ment, it is possible to build a cross-divi-
Skill E
the government and other companies.
Global Technology Networking (GTNET)
Europe (Belgium and Germany)
Conducting technical assessments
and market development
Japan
Planning, running, and managing
GTNET activities
North America (Silicon Valley)
Conducting technical assessments and
market development while forging ties
with leading-edge companies
Southeast Asia (Singapore)
Conducting market surveys of energy-sav-
ing products for fast-growing countries,
and promoting widespread adoption of
energy-saving products by showcasing
the AGC Group’s technologies
41
AGC Report 2015
AGC Report 2015 42
sional network beyond departmental and
Skill D
Skill C
national borders.
Skill Map data are also used to orga-
nize cross-divisional
international net-
works of employees with the same skills,
Division E
Division D
Division C
Skill B
Division B
Skill A
Division A
allowing opportunities for information sharing among employees who would not oth-
Skill Map:
erwise be able to come into contact because they work in different divisions and group
companies. Members of cross-divisional networks can apply their mutual skills and
know-how to tackle whatever issues arise, helping them find solutions and even ideas
for new technologies. The use of these networks has also prompted network members
with different skills from R&D, sales, and other departments to collaborate in refining
proposals for new products.
The source of innovation is diversity. That is to say, innovations are generated by an
environment in which diverse personalities and values meet head on. With this in mind,
we are promoting diverse workplaces through cross-divisional employee exchanges
and collaboration as it continues to encourage the creation of new innovations.
Function 1
Ensuring future optimal
human resources
(Strategic recruitment and training)
Function 2
Human resources search and
“right person in the right place”
personnel allocation
Function 3
Exchange of ideas between
employees across divisions and
countries (Cross-divisional
network activity)
A Unique Personnel Database
The AGC Group’s Skill Map is a tool for
registering the AGC Group employ-
ees according to their specialized
skills. The database is used for orga-
nizing project teams, appointing per-
sonnel, and setting up cross-divi-
sional and international exchanges
between employees.
New Business Creation
at the AGC Group
A worksite carrying out GTNET activities in the
Silicon Valley, U.S.A.
Taking Advantage of Open Innovation
to Renew Technologies and Create New Markets
The AGC Group is actively promoting open innovation as a means of conducting R&D.
By working together with a wide spectrum of experts from outside the Group, we are
gaining access to a more substantial range of technologies. Through such efforts, we
work to accelerate technical innovations and possibilities for new market creation, and
shorten product development lead times.
In our short- and medium-term development projects, we are pursuing joint devel-
opment and business partnerships that enable us to mutually complement technolo-
gies, products and services. On the other hand, our long-term projects cover a wide
array of technologies related to smart communities and social infrastructure. We are
collaborating with companies and research institutions through the participation in
national projects and other collaborative initiatives. In Japan, the AGC Group has
already participated in 10 national projects overseen by the Ministry of Education,
Culture, Sports, Science and Technology and the Ministry of Economy, Trade and
in Singapore, Belgium and Germany, and the Silicon Valley, which is home to many
leading electronics and IT firms as well as R&D centers of automakers. In this capacity,
we have been working to conduct research and make proposals regarding technologi-
cal trends and environmental and safety regulations locally. In Singapore, for instance,
we are participating in a green building consortium organized by the Singapore
Economic Development Board, through which we are using energy-saving glass and
the government and other companies.
Social Value
Tackling Problems Associated with Energy and Climate Change
Reducing CO2 emissions through
energy-saving and energy-creating products
People around the world are taking greater interest in clean energy and environ-
mental problems, especially climate change. In this context, the AGC Group is
working to reduce its CO2 emissions through environmental products, and cre-
ated an environmental slogan to reflect these efforts in 2014. To help solve the
environmental problems faced by societies, the Group is providing all kinds of
energy-saving and energy-creating products, including Low-E double glazing
glass, glass for solar power panels, low-environmental-load refrigerants, and road
surface heat-shielding materials designed to alleviate the heat island effect.
CO2 emissions
in 20201
Approx.
13,000,000
tons
CO2 reduction
through energy-saving
and energy-creating
products2
Six-fold
reduction
Approx.
80,000,000
tons
1 The AGC Group’s estimated annual CO2 emissions in 2020
2 The amount of CO2 reduction if the energy-saving and energy-creating products manufactured in 2020 are used to the end of their useful lives.
Creating a Work Environment that Encourages Innovation
and Promotes Cross-Divisional and International Exchanges
Industry. Outside Japan, we are working to step up our open innovation activities
The main force driving the AGC Group’s R&D activities is the skills and capabilities of its
through activities such as information collection via local venture funds and investing in
expert personnel. To make the most of our human assets, we are using the Skill Map
influential venture companies in the U.S.
database of individual employees. The specialized capabilities of AGC Group employ-
In addition, the Group is also carrying out its own Global Technology Networking
ees are recorded in the database, allowing management to see what skills have been
(GTNET) activities in order to monitor trends in cutting-edge markets and to stay
acquired by employees in specific divisions and companies of the Group so they can
abreast of the latest technical information. The network activities cover three regions
effectively appoint personnel and facilitate communication.
worldwide— Southeast Asia, Europe, and North America—with respective worksites
For example, when undertaking a new project, project managers can assemble
optimal teams by quickly and accurately
determining which employees have the
necessary skills, and which countries and
divisions they work in. In addition, by iden-
tifying employees with common skills
existing outside of a company or depart-
other products to help realize environmentally friendly buildings in collaboration with
ment, it is possible to build a cross-divi-
Skill E
sional network beyond departmental and
Skill D
Skill C
national borders.
Skill Map data are also used to orga-
nize cross-divisional
international net-
works of employees with the same skills,
Division E
Division D
Division C
Skill B
Division B
Skill A
Division A
allowing opportunities for information sharing among employees who would not oth-
erwise be able to come into contact because they work in different divisions and group
companies. Members of cross-divisional networks can apply their mutual skills and
know-how to tackle whatever issues arise, helping them find solutions and even ideas
for new technologies. The use of these networks has also prompted network members
with different skills from R&D, sales, and other departments to collaborate in refining
proposals for new products.
The source of innovation is diversity. That is to say, innovations are generated by an
environment in which diverse personalities and values meet head on. With this in mind,
we are promoting diverse workplaces through cross-divisional employee exchanges
and collaboration as it continues to encourage the creation of new innovations.
Global Technology Networking (GTNET)
Europe (Belgium and Germany)
Conducting technical assessments
and market development
Southeast Asia (Singapore)
Conducting market surveys of energy-sav-
ing products for fast-growing countries,
and promoting widespread adoption of
energy-saving products by showcasing
the AGC Group’s technologies
Japan
Planning, running, and managing
GTNET activities
North America (Silicon Valley)
Conducting technical assessments and
market development while forging ties
with leading-edge companies
Function 1
Ensuring future optimal
human resources
(Strategic recruitment and training)
Function 2
Human resources search and
“right person in the right place”
personnel allocation
Function 3
Exchange of ideas between
employees across divisions and
countries (Cross-divisional
network activity)
Skill Map:
A Unique Personnel Database
The AGC Group’s Skill Map is a tool for
registering the AGC Group employ-
ees according to their specialized
skills. The database is used for orga-
nizing project teams, appointing per-
sonnel, and setting up cross-divi-
sional and international exchanges
between employees.
41
AGC Report 2015
AGC Report 2015 42
New Business Creation
at the AGC Group
In Focus
The Potential of Smart Communities
Society is ever changing and evolving.
In order to provide needed solutions and
to achieve further growth,
the AGC Group is developing new business areas.
Naoki Sugimoto
GM of Business Development Office
The AGC Group is focusing on cultivating the “smart commu-
technologies that we have cultivated in these business areas
nity”-related market as a new business area in which it can
are all on the cutting edge globally, and at the same time, I am
leverage its technologies, human resources and other man-
convinced that, if combined, they will be able to create inno-
agement resources to the utmost.
vative materials found nowhere in the world.
Smart communities are communities in which people and
In order to realize this, it is vital for us to create a system in
people, people and things, and people and information are
which we can exercise our comprehensive strengths as “All
connected and communicate quickly and easily, allowing
AGC” by removing the barriers between organizations and
people to live with abundance, safety and security. Working
allowing people and technologies move freely between
towards the realization of this type of community, the AGC
them. In 2011, the Business Development Office was estab-
Group will provide solutions based on diverse materials in six
lished to act as the flagbearer for this initiative. Human
fields (see page 44).
resources with varied knowledge and experience have
These six fields are not clearly separated; they overlap and
come together from the R&D, Sales and Marketing divisions
merge with one another. When providing solutions in these
and are working to create a wide range of new technologies
fields, there are limits to working with one material or limited
and products.
technology, and it is necessary to combine diverse materials
In the future, within the AGC Group, we will continue to
and technologies to create new innovations.
contribute to the resolution of social issues by constantly
The AGC Group is unique. It is the only corporation in the
thinking and proposing solutions from the customer’s per-
world that is simultaneously developing glass, chemicals and
spective as we assess the shape of the society which is to
ceramics businesses. The core glass, chemical and ceramic
come and the needs it will have.
Smart community-
related markets
Social changes and trends
The AGC Group’s approach
Next-Generation
(cid:127)Fusion of cars and ICT
Mobility
(cid:127)Exhaust gas and fuel efficiency regulations of cars
Provide glass and other materials for transportation methods such as
railways and cars with automated driving and collision prevention
functions, and for surrounding fields
Heat
Management
(cid:127)Changes to energy efficiency and other energy policies in every country
(cid:127)Trends of tightened chemical substance and exhaust gas regulations
Use heat-control technology cultivated by the AGC Group at
super-high temperatures such as 1,700ºC to below freezing to provide
materials to housing and other industrial fields
Provide coolant with a low environmental impact
Next-Generation
Communication
(cid:127)The evolution of displays and communication technology
(cid:127)Rapid increase in data and the evolution of storage technology
(cid:127)New markets from urbanization and developing middle income groups
Provide digital signage and sensing technology that can make
communication smoother and more effective through glass interfaces
Life Science
(cid:127)Rising interest in medical treatment as society ages
(cid:127)Breakthroughs in life science-related technology
(cid:127)Expanding demand in fast-growing countries
Provide pharmaceutical and agrochemical intermediates and devices
for disease prevention and diagnostics, enabling people to live
healthier lives
Security and
Safety
(cid:127)Evolution of IoT
(cid:127)Increasing devastation of natural disasters triggered by climate change
(cid:127)Rapid increase in data and evolution of storage technology
Provide security systems that merge glass and sensing technology in
order to contribute to the realization of a safe, secure society
New Energy and
New Green
(cid:127)Changes to each country’s energy policies, including energy efficiency
(cid:127)Power (transportation)-related new technologies and ICT
(cid:127)Development of renewable energy policies
Provide materials geared towards solar power stabilization, hydrogen
energy societies, and fuel-cell vehicles, which are beginning to be
made practical
Life Science
Next-Generation Communication
Next-Generation Communication
New Energy and New Green
Pharmaceutical and agrochemical
Glascene™ is a glass screen that allows
infoverre™ achieves clear and bright
Lightjoule™ is an ultra-lightweight solar
intermediate and active ingredient
images to be projected onto transpar-
images by attaching a liquid crystal
panel that is helping to spread adop-
Tafluprost
ent glass
display directly onto a glass surface
tion of solar power generation facilities
43
AGC Report 2015
AGC Report 2015 44
New Business Creation
at the AGC Group
In Focus
The Potential of Smart Communities
Society is ever changing and evolving.
In order to provide needed solutions and
to achieve further growth,
the AGC Group is developing new business areas.
Naoki Sugimoto
GM of Business Development Office
The AGC Group is focusing on cultivating the “smart commu-
technologies that we have cultivated in these business areas
nity”-related market as a new business area in which it can
are all on the cutting edge globally, and at the same time, I am
leverage its technologies, human resources and other man-
convinced that, if combined, they will be able to create inno-
agement resources to the utmost.
vative materials found nowhere in the world.
Smart communities are communities in which people and
In order to realize this, it is vital for us to create a system in
people, people and things, and people and information are
which we can exercise our comprehensive strengths as “All
connected and communicate quickly and easily, allowing
AGC” by removing the barriers between organizations and
people to live with abundance, safety and security. Working
allowing people and technologies move freely between
towards the realization of this type of community, the AGC
them. In 2011, the Business Development Office was estab-
Group will provide solutions based on diverse materials in six
lished to act as the flagbearer for this initiative. Human
fields (see page 44).
resources with varied knowledge and experience have
These six fields are not clearly separated; they overlap and
come together from the R&D, Sales and Marketing divisions
merge with one another. When providing solutions in these
and are working to create a wide range of new technologies
fields, there are limits to working with one material or limited
and products.
technology, and it is necessary to combine diverse materials
In the future, within the AGC Group, we will continue to
and technologies to create new innovations.
contribute to the resolution of social issues by constantly
The AGC Group is unique. It is the only corporation in the
thinking and proposing solutions from the customer’s per-
world that is simultaneously developing glass, chemicals and
spective as we assess the shape of the society which is to
ceramics businesses. The core glass, chemical and ceramic
come and the needs it will have.
Smart community-
related markets
Social changes and trends
The AGC Group’s approach
Next-Generation
Mobility
(cid:127)Fusion of cars and ICT
(cid:127)Exhaust gas and fuel efficiency regulations of cars
Provide glass and other materials for transportation methods such as
railways and cars with automated driving and collision prevention
functions, and for surrounding fields
Heat
Management
(cid:127)Changes to energy efficiency and other energy policies in every country
(cid:127)Trends of tightened chemical substance and exhaust gas regulations
Use heat-control technology cultivated by the AGC Group at
super-high temperatures such as 1,700ºC to below freezing to provide
materials to housing and other industrial fields
Provide coolant with a low environmental impact
Next-Generation
Communication
(cid:127)The evolution of displays and communication technology
(cid:127)Rapid increase in data and the evolution of storage technology
(cid:127)New markets from urbanization and developing middle income groups
Provide digital signage and sensing technology that can make
communication smoother and more effective through glass interfaces
Life Science
(cid:127)Rising interest in medical treatment as society ages
(cid:127)Breakthroughs in life science-related technology
(cid:127)Expanding demand in fast-growing countries
Provide pharmaceutical and agrochemical intermediates and devices
for disease prevention and diagnostics, enabling people to live
healthier lives
Security and
Safety
(cid:127)Increasing devastation of natural disasters triggered by climate change
(cid:127)Rapid increase in data and evolution of storage technology
(cid:127)Evolution of IoT
Provide security systems that merge glass and sensing technology in
order to contribute to the realization of a safe, secure society
New Energy and
New Green
(cid:127)Changes to each country’s energy policies, including energy efficiency
(cid:127)Power (transportation)-related new technologies and ICT
(cid:127)Development of renewable energy policies
Provide materials geared towards solar power stabilization, hydrogen
energy societies, and fuel-cell vehicles, which are beginning to be
made practical
Life Science
Next-Generation Communication
Next-Generation Communication
New Energy and New Green
Pharmaceutical and agrochemical
intermediate and active ingredient
Tafluprost
Glascene™ is a glass screen that allows
images to be projected onto transpar-
ent glass
infoverre™ achieves clear and bright
images by attaching a liquid crystal
display directly onto a glass surface
Lightjoule™ is an ultra-lightweight solar
panel that is helping to spread adop-
tion of solar power generation facilities
43
AGC Report 2015
AGC Report 2015 44
Corporate
Governance
Approach to Corporate Governance
As its basic policy on corporate governance, Asahi Glass clearly
separates its management oversight and management execution
functions, and conducts management on a group-wide basis,
beyond the conventional framework of parent-company and sub-
sidiaries. Moreover, the company makes efforts to enhance its
management oversight function and ensure speedy decision-mak-
ing when executing management.
requirements under the Companies Act of Japan as well as Asahi
Glass’ own selection criteria designed to ensure director indepen-
dence (see page 46 for details). The three outside directors also
fulfill the criteria for Independent Directors set forth by the securi-
ties listing regulations and enforcement rules for the securities
listing regulations.
Outside directors are expected to offer proposals in the Board
of Directors concerning general management from an indepen-
dent standpoint, based on their extensive experience in global
corporate management and knowledge of corporate governance
related issues.
Framework for Management Oversight
1 As of March 27, 2015
Board of Directors
Improving the Objectivity and Transparency of the Board of
Directors by Incorporating Opinions from Outside Directors
The Board of Directors of Asahi Glass comprises seven directors,
each appointed to a one-year term, and includes three outside
directors, including one woman1. The Board is responsible for
approving the AGC Group’s basic policies and monitoring the
execution of its management.
Asahi Glass began employing outside directors in 2002 in an
effort to enhance the management oversight function. The
appointment of outside directors is carried out in accordance with
Board of Directors Meetings in Fiscal 2014
(cid:127)Meetings held: 13
(cid:127)Attendance rate of each outside director in meetings: 99%
Board of Corporate Auditors
Enhancing the Effectiveness of Audits with Accounting
Auditors and the Internal Audit Organization while Auditing
the Performance of Directors
Asahi Glass employs corporate auditors who audit the perfor-
mance of directors by attending important meetings, including
Overview of Corporate Governance Structure (as of March 27, 2015)
Corporate Auditors: 4 Auditors
(Including 3 Outside
Corporate Auditors)
Independent Accountants
General Meeting of Shareholders
Board of Directors: 7 Directors
(Including 3 Outside Directors)
Chairman
President & CEO
Senior Executive Officers: 2
Executive Officers
Management Committee
CSR Committee
Internal Audit Office
Group Corporate
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In-house Companies/Strategic Business Unit (SBU)2
Nominating Committee:
5 Directors
(Including 3 Outside Directors)
Compensation Committee:
5 Directors
(Including 3 Outside Directors)
Compliance Committee
Fair Trade Committee
Information Management Council
Security Export Control
Headquarters
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meeting of the Board of Directors and the Management Commit-
tee, and by holding regular meetings with representative direc-
tors. The corporate auditors also enhance the effectiveness of
auditing by exchanging views and obtaining information concern-
ing audit results and other matters in cooperation with account-
ing auditors and the Internal Audit Office. As of March 27, 2015,
Standards for Independence of Outside Officers (Summary)
(cid:127)An outside officer shall not be a business executing person from a
company competing in the same industries as the AGC Group or a
company that has conducted a major transaction with the AGC
Group4, or a major shareholder of Asahi Glass.
(cid:127)An outside officer will not have received a significant sum of money (in
the past three years) from the AGC Group besides compensation
Asahi Glass employed four corporate auditors in total, of which
designated for their respective position.
three were outside auditors. All three fulfill the requirements of
the Companies Act, as well as standards for independence set
forth by our company (see list at right). The outside auditors also
(cid:127)An outside officer shall not have been an employee of an auditing firm
that has conducted audits on the AGC Group in the past three years.
(cid:127)The absence of serious conflicts of interest between the Company and
an outside officer, or any matter between the Company and an outside
fulfill the criteria for Independent Auditors set forth by securities
officer that may damage his or her independence.
listing regulations and the enforcement rules for the securities
listing regulations.
Board of Auditors Meetings in Fiscal 2014
(cid:127)Meetings held: 13
(cid:127)Attendance rate of members of the Board of Auditors: 100%
Framework for Enhancing
the Management Oversight Function
Early Establishment of Nominating and Compensation
Committees in 2003
Support System for Outside Officers
Assistance Provided to Outside Directors and Outside
Corporate Auditors to Help Them more Effectively Perform
Their Respective Supervision and Auditing Duties
To help enable outside directors to effectively oversee opera-
tions, the Office of the President, which serves as the Secretariat
of the Board of Directors, provides them with relevant information
and documents prior to Board of Directors meetings, as well as
comprehensive explanations of issues to be debated by the
Board in advance when necessary.
Asahi Glass established its Nominating and Compensation
Similarly, the Secretariat of the Board of Corporate Auditors
Committees in 2003 as voluntary advisory committees of the
assists outside corporate auditors by holding Board of Corporate
Board of Directors.
Committee Activities in Fiscal 2014
Auditors meetings, attending important meetings, and helping
them coordinate meetings with representative directors and
accounting auditors.
Committee and
Duties
members
Number of
meetings held
Nominating
Committee:
4 Directors
Deliberate on candidates for direc-
tor and executive officer positions,
and make recommendations to
(of which 3 are
the Board of Directors
outside directors)
Compensation
Deliberate on the compensation
Committee:
4 Directors
system for directors and executive
officers, directors’ compensation
(of which 3 are
limits and bonuses to be reported
outside directors)
to the general shareholders meet-
ing, and the amount of compen-
sation for executive officer
Framework for Management Execution
6 times
Executive Officers Ensure Speedy and Transparent Business
Execution, while the Adoption of an In-House Company
System Facilitates Flexible Operational Management
At Asahi Glass, the management execution function is the
responsibility of executive officers below the president & CEO.
5 times
As an advisory committee to the president & CEO, Asahi Glass
establishes the Management Committees and discusses
business management monitoring and decisions regarding
management execution. A system of In-house Companies
(quasi-subsidiaries within the Group) has been introduced and a
global consolidated management system is adopted with
authority for business execution has been delegated to the
Standards for Independence of Outside Officers
regard to business execution. Much of the responsibility and
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).
Asahi Glass has set the following standards to ensure the inde-
In-house Companies and the Strategic Business Unit.
pendence of outside directors and outside corporate auditors.
45
AGC Report 2015
AGC Report 2015 46
Corporate
Governance
Approach to Corporate Governance
requirements under the Companies Act of Japan as well as Asahi
Glass’ own selection criteria designed to ensure director indepen-
As its basic policy on corporate governance, Asahi Glass clearly
dence (see page 46 for details). The three outside directors also
separates its management oversight and management execution
fulfill the criteria for Independent Directors set forth by the securi-
functions, and conducts management on a group-wide basis,
ties listing regulations and enforcement rules for the securities
beyond the conventional framework of parent-company and sub-
listing regulations.
sidiaries. Moreover, the company makes efforts to enhance its
Outside directors are expected to offer proposals in the Board
management oversight function and ensure speedy decision-mak-
of Directors concerning general management from an indepen-
ing when executing management.
Framework for Management Oversight
Board of Directors
Improving the Objectivity and Transparency of the Board of
Directors by Incorporating Opinions from Outside Directors
The Board of Directors of Asahi Glass comprises seven directors,
each appointed to a one-year term, and includes three outside
directors, including one woman1. The Board is responsible for
approving the AGC Group’s basic policies and monitoring the
execution of its management.
Asahi Glass began employing outside directors in 2002 in an
dent standpoint, based on their extensive experience in global
corporate management and knowledge of corporate governance
related issues.
1 As of March 27, 2015
Board of Directors Meetings in Fiscal 2014
(cid:127)Meetings held: 13
(cid:127)Attendance rate of each outside director in meetings: 99%
Board of Corporate Auditors
Enhancing the Effectiveness of Audits with Accounting
Auditors and the Internal Audit Organization while Auditing
the Performance of Directors
effort to enhance the management oversight function. The
Asahi Glass employs corporate auditors who audit the perfor-
appointment of outside directors is carried out in accordance with
mance of directors by attending important meetings, including
Overview of Corporate Governance Structure (as of March 27, 2015)
Corporate Auditors: 4 Auditors
(Including 3 Outside
Corporate Auditors)
Independent Accountants
General Meeting of Shareholders
Board of Directors: 7 Directors
(Including 3 Outside Directors)
Chairman
President & CEO
Senior Executive Officers: 2
Executive Officers
Management Committee
CSR Committee
Internal Audit Office
Group Corporate
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In-house Companies/Strategic Business Unit (SBU)2
Nominating Committee:
5 Directors
(Including 3 Outside Directors)
Compensation Committee:
5 Directors
(Including 3 Outside Directors)
Compliance Committee
Fair Trade Committee
Information Management Council
Security Export Control
Headquarters
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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).
meeting of the Board of Directors and the Management Commit-
tee, and by holding regular meetings with representative direc-
tors. The corporate auditors also enhance the effectiveness of
auditing by exchanging views and obtaining information concern-
ing audit results and other matters in cooperation with account-
ing auditors and the Internal Audit Office. As of March 27, 2015,
Asahi Glass employed four corporate auditors in total, of which
three were outside auditors. All three fulfill the requirements of
the Companies Act, as well as standards for independence set
forth by our company (see list at right). The outside auditors also
fulfill the criteria for Independent Auditors set forth by securities
listing regulations and the enforcement rules for the securities
listing regulations.
Board of Auditors Meetings in Fiscal 2014
(cid:127)Meetings held: 13
(cid:127)Attendance rate of members of the Board of Auditors: 100%
Framework for Enhancing
the Management Oversight Function
Early Establishment of Nominating and Compensation
Committees in 2003
Asahi Glass established its Nominating and Compensation
Committees in 2003 as voluntary advisory committees of the
Board of Directors.
Committee Activities in Fiscal 2014
Committee and
members
Duties
Number of
meetings held
Nominating
Committee:
4 Directors
(of which 3 are
outside directors)
Compensation
Committee:
4 Directors
(of which 3 are
outside directors)
Deliberate on candidates for direc-
tor and executive officer positions,
and make recommendations to
the Board of Directors
6 times
Deliberate on the compensation
system for directors and executive
officers, directors’ compensation
limits and bonuses to be reported
to the general shareholders meet-
ing, and the amount of compen-
sation for executive officer
5 times
Standards for Independence of Outside Officers
Asahi Glass has set the following standards to ensure the inde-
pendence of outside directors and outside corporate auditors.
Standards for Independence of Outside Officers (Summary)
(cid:127)An outside officer shall not be a business executing person from a
company competing in the same industries as the AGC Group or a
company that has conducted a major transaction with the AGC
Group4, or a major shareholder of Asahi Glass.
(cid:127)An outside officer will not have received a significant sum of money (in
the past three years) from the AGC Group besides compensation
designated for their respective position.
(cid:127)An outside officer shall not have been an employee of an auditing firm
that has conducted audits on the AGC Group in the past three years.
(cid:127)The absence of serious conflicts of interest between the Company and
an outside officer, or any matter between the Company and an outside
officer that may damage his or her independence.
Support System for Outside Officers
Assistance Provided to Outside Directors and Outside
Corporate Auditors to Help Them more Effectively Perform
Their Respective Supervision and Auditing Duties
To help enable outside directors to effectively oversee opera-
tions, the Office of the President, which serves as the Secretariat
of the Board of Directors, provides them with relevant information
and documents prior to Board of Directors meetings, as well as
comprehensive explanations of issues to be debated by the
Board in advance when necessary.
Similarly, the Secretariat of the Board of Corporate Auditors
assists outside corporate auditors by holding Board of Corporate
Auditors meetings, attending important meetings, and helping
them coordinate meetings with representative directors and
accounting auditors.
Framework for Management Execution
Executive Officers Ensure Speedy and Transparent Business
Execution, while the Adoption of an In-House Company
System Facilitates Flexible Operational Management
At Asahi Glass, the management execution function is the
responsibility of executive officers below the president & CEO.
As an advisory committee to the president & CEO, Asahi Glass
establishes the Management Committees and discusses
business management monitoring and decisions regarding
management execution. A system of In-house Companies
(quasi-subsidiaries within the Group) has been introduced and a
global consolidated management system is adopted with
regard to business execution. Much of the responsibility and
authority for business execution has been delegated to the
In-house Companies and the Strategic Business Unit.
45
AGC Report 2015
AGC Report 2015 46
Corporate
Governance
CSR Management
Compensation System
Basic Philosophy on Compensation System
Establishing an Objective and Highly Transparent
Compensation System
In its Compensation Principles, Asahi Glass sets out its basic stances
and philosophies on overall compensation for officers as follows.
(cid:127)The compensation system shall be one that enables the Company
to attract, secure and reward diverse and talented personnel, in
order to establish and expand the Company’s edge over its peers.
(cid:127)The compensation system shall be one that promotes continued
improvement of corporate value, and in this way allows shareholders
and management to share gains
(cid:127)The compensation system shall be one that gives motivations to
achieve performance goals relating to management strategies for
the AGC Group’s continuous development.
(cid:127)The decision-making process of determining compensation shall be
objective and highly transparent
Composition of Compensation
Directors Receive Fixed and Performance-Linked
Compensation while Outside Directors Receive Fixed
Compensation
Under the company’s compensation system, directors who also
serve as executive officers receive a fixed monthly salary, perfor-
mance-linked bonuses, and stock-based compensation stock
options, while directors who do not serve as executive officers
receive a fixed monthly salary and stock-based compensation
stock options. Meanwhile, outside directors and corporate audi-
tors receive a monthly salary.
The amount of the Bonuses, which is aimed at motivating
recipients to achieve their single-fiscal-year business results goals,
Composition of Compensation for Directors and
Corporate Auditors
Type of compensation
Eligible persons
Directors
Fixed
compensation
Monthly
compensation
All directors
Performance-
linked
compensation
Performance-linked
bonuses
Directors who also
serve as executive
officers
Stock compensation-
type stock options
Directors excluding
outside directors
Corporate
auditors
Fixed
compensation
Monthly
compensation
All corporate
auditors
varies depending on consolidated business results for a single
fiscal year. The stock-based compensation stock options are
intended to allow recipients to share benefits and risks associ-
ated with stock price fluctuations with our shareholders, and
enhance their motivation and morale so as to raise business
results and corporate value on a medium to long term basis.
Compensation Determination Method
Ensuring the Objectivity and Transparency of the
Company’s Compensation Decision-Making Process
The Compensation Committee deliberates on matters such as
the compensation system and level for directors and executive
officers based on the Compensation Principles, makes proposals
regarding them to the Board of Directors, and verifies the results
of compensation payments in order to increase the objectivity
and transparency of the compensation determination process.
Compensation to Directors and Corporate Auditors
in Fiscal 2014
Number of
recipients1
Total payment
(millions of yen)1
All directors
Outside directors only
All corporate auditors
Outside corporate auditors only
9
4
5
4
394
48
93
57
1 Figures include compensation for two directors (including one outside
director) and one outside corporate auditor who stepped down at the time
of the 89th General Meeting of Shareholders held on March 28, 2014.
Internal Control
Maintaining, Applying, and Assessing Internal Control
over Financial Reporting
In response to the enactment of the Companies Act of Japan,
Asahi Glass established a basic policy for internal control in May
2006, with the aim of confirming that its business execution sys-
tems, including the compliance system, were functioning appro-
priately. Furthermore, Asahi Glass adopted an internal control
reporting system in compliance with Japan’s Financial Instru-
ments and Exchange Act, and on that basis, created the AGC
Group Internal Control over Financial Reporting Implementation
Regulations and established an internal control system for its
financial reporting.
CSR Management
In order to fulfill its corporate mission to “Look beyond to make
CSR Promotion System
Facilitating Discussions on Group-Wide CSR Policies and Issues
the world a brighter place” as outlined in the Group Vision
The AGC Group established the CSR Committee in 2005 as an
“Look Beyond”, the AGC Group endeavors to both foster trust
in-house organization dedicated to promoting CSR. On the CSR
and meet the expectations of the community and contribute to
Committee, the AGC Group CEO presides as the committee
the creation of a sustainable society by adopting behaviors
chair, while the board of directors, corporate auditors and the
based on our four shared values, namely innovation and opera-
head of each organization deliberate over general policies and
tional excellence, diversity, the environment, and integrity. Fur-
issues related to the Group’s CSR activities on a quarterly basis.
ther, the Group utilizes the ISO 26000, an international standard
Moreover, the CSR Promotion Team, which consists of CSR exec-
on social responsibility as a guideline for its global CSR activities
utives from each business division, as well as the Human
in order to more concretely demonstrate values-based conduct
Resources, Purchases and Audit departments, discuss and share
and establish the AGC Group Charter of Corporate Behavior
responsibility for each policy and issue prior to CSR Committee
(refer to the Asahi Glass website for more details).
meetings. In addition, specialized CSR Organizations (CSR
In 2011, the AGC Group began to develop the CSR monitoring
Offices of each In-house Company) established in each business
framework based on ISO 26000 to assess the Group’s CSR activi-
division share information globally regarding policies that have
ties from the perspective of stakeholders and strengthen mea-
been discussed and shared by the CSR Committee and CSR Pro-
sures and policies that benefit the community (refer to the AGC
motion Team, and work to promote each policy.
through the AGC Report and other channels, including the AGC
The AGC Group works to solve various social issues including
Group’s CSR website for more details). Within the matrix of CSR
issues established in this framework, targets and results regard-
ing material issues for which frameworks are to be developed
and commitments made to society are reported to stakeholders
Group’s CSR website.
CSR Promotion System
CSR Committee (meets quarterly)
Deliberates over general policies and
issues related to the Group’s CSR activities
Chair: Group CEO
Office: Group Corporate CSR Office
Subcommittees
(cid:127)Compliance Committee
(cid:127)EHSQ Management2
(cid:127)Enterprise Risk Management
Each In-house Company / SBU
In-house Company / SBU
CSR Offices
Group companies world wide
CSR Promotion Team Meeting
Working-level meeting for
discussion and sharing individual
CSR policies and issues
AGC Group Corporate
Office of the President
Human Resources &
Administration Office
Corporate
Communications &
Investor Relations Office
CSR Office
Purchase & Logistics
Center
Support/
Guidance
2 Environment, occupational Health & Safety and Quality.
Promoting Social Responsibility across the
Supply Chain
challenges related to human rights, labor practices, and the envi-
ronment across the entire supply chain, including efforts with sup-
pliers. It emphasizes the importance of corporate social
responsibility in its AGC Group Purchasing Policy, which it revised
in 2009, and encourages its suppliers to follow the policy and
cooperate in its enforcement.
In 2014, the AGC Group formally requested 248 of its main sup-
pliers, including those outside Japan, to cooperate in raising aware-
ness of the AGC Group Purchasing Policy at their worksites. It has
also been conducting surveys of suppliers to determine their status
of implementing CSR activities. The Group conducted a survey of
its major business partners among Group companies in Europe
and North America in 2014, following a similar survey carried out in
Japan in the previous year. In the future, the Group plans to extend
the survey to its Group companies in Asia other than Japan, and
put in place a mechanism to check the results of these surveys.
Excerpt from the AGC Group Purchasing Policy
Items suppliers are requested to cooperate on when promoting CSR in
the supply chain:
1. Concentrate to supply products and services with good quality, considering
Safety & Environment and Compliance to Laws & Regulations of each country.
2. Secure and proper managing of Proprietary information and Intellectual property.
3. Not to be engaged to forced labor or child labor and never tolerate
infringements of human rights.
4. Make efforts to environment preservation and ensuring safety and security.
5. Maintain adequate level of occupational health and safety.
47
AGC Report 2015
WEB
Please refer to the Asahi Glass website for more information about CSR management.
AGC Report 2015 48
Corporate
Governance
CSR Management
Compensation System
Basic Philosophy on Compensation System
Establishing an Objective and Highly Transparent
Compensation System
In its Compensation Principles, Asahi Glass sets out its basic stances
and philosophies on overall compensation for officers as follows.
(cid:127)The compensation system shall be one that enables the Company
to attract, secure and reward diverse and talented personnel, in
order to establish and expand the Company’s edge over its peers.
(cid:127)The compensation system shall be one that promotes continued
improvement of corporate value, and in this way allows shareholders
and management to share gains
(cid:127)The compensation system shall be one that gives motivations to
achieve performance goals relating to management strategies for
the AGC Group’s continuous development.
(cid:127)The decision-making process of determining compensation shall be
objective and highly transparent
Composition of Compensation
Directors Receive Fixed and Performance-Linked
Compensation while Outside Directors Receive Fixed
Compensation
Under the company’s compensation system, directors who also
serve as executive officers receive a fixed monthly salary, perfor-
mance-linked bonuses, and stock-based compensation stock
options, while directors who do not serve as executive officers
receive a fixed monthly salary and stock-based compensation
stock options. Meanwhile, outside directors and corporate audi-
tors receive a monthly salary.
varies depending on consolidated business results for a single
fiscal year. The stock-based compensation stock options are
intended to allow recipients to share benefits and risks associ-
ated with stock price fluctuations with our shareholders, and
enhance their motivation and morale so as to raise business
results and corporate value on a medium to long term basis.
Compensation Determination Method
Ensuring the Objectivity and Transparency of the
Company’s Compensation Decision-Making Process
The Compensation Committee deliberates on matters such as
the compensation system and level for directors and executive
officers based on the Compensation Principles, makes proposals
regarding them to the Board of Directors, and verifies the results
of compensation payments in order to increase the objectivity
and transparency of the compensation determination process.
Compensation to Directors and Corporate Auditors
in Fiscal 2014
Number of
recipients1
Total payment
(millions of yen)1
All directors
Outside directors only
All corporate auditors
Outside corporate auditors only
9
4
5
4
394
48
93
57
1 Figures include compensation for two directors (including one outside
director) and one outside corporate auditor who stepped down at the time
of the 89th General Meeting of Shareholders held on March 28, 2014.
The amount of the Bonuses, which is aimed at motivating
recipients to achieve their single-fiscal-year business results goals,
Internal Control
Composition of Compensation for Directors and
Corporate Auditors
Type of compensation
Eligible persons
Directors
Fixed
Monthly
compensation
compensation
All directors
Performance-
Performance-linked
linked
compensation
bonuses
Directors who also
serve as executive
officers
Stock compensation-
Directors excluding
type stock options
outside directors
Corporate
Fixed
Monthly
auditors
compensation
compensation
All corporate
auditors
Maintaining, Applying, and Assessing Internal Control
over Financial Reporting
In response to the enactment of the Companies Act of Japan,
Asahi Glass established a basic policy for internal control in May
2006, with the aim of confirming that its business execution sys-
tems, including the compliance system, were functioning appro-
priately. Furthermore, Asahi Glass adopted an internal control
reporting system in compliance with Japan’s Financial Instru-
ments and Exchange Act, and on that basis, created the AGC
Group Internal Control over Financial Reporting Implementation
Regulations and established an internal control system for its
financial reporting.
CSR Management
In order to fulfill its corporate mission to “Look beyond to make
the world a brighter place” as outlined in the Group Vision
“Look Beyond”, the AGC Group endeavors to both foster trust
and meet the expectations of the community and contribute to
the creation of a sustainable society by adopting behaviors
based on our four shared values, namely innovation and opera-
tional excellence, diversity, the environment, and integrity. Fur-
ther, the Group utilizes the ISO 26000, an international standard
on social responsibility as a guideline for its global CSR activities
in order to more concretely demonstrate values-based conduct
and establish the AGC Group Charter of Corporate Behavior
(refer to the Asahi Glass website for more details).
In 2011, the AGC Group began to develop the CSR monitoring
framework based on ISO 26000 to assess the Group’s CSR activi-
ties from the perspective of stakeholders and strengthen mea-
sures and policies that benefit the community (refer to the AGC
Group’s CSR website for more details). Within the matrix of CSR
issues established in this framework, targets and results regard-
ing material issues for which frameworks are to be developed
and commitments made to society are reported to stakeholders
through the AGC Report and other channels, including the AGC
Group’s CSR website.
CSR Promotion System
CSR Committee (meets quarterly)
Deliberates over general policies and
issues related to the Group’s CSR activities
Chair: Group CEO
Office: Group Corporate CSR Office
Subcommittees
(cid:127)Compliance Committee
(cid:127)EHSQ Management2
(cid:127)Enterprise Risk Management
Each In-house Company / SBU
In-house Company / SBU
CSR Offices
Group companies world wide
CSR Promotion Team Meeting
Working-level meeting for
discussion and sharing individual
CSR policies and issues
AGC Group Corporate
Office of the President
Human Resources &
Administration Office
Corporate
Communications &
Investor Relations Office
CSR Office
Purchase & Logistics
Center
Support/
Guidance
2 Environment, occupational Health & Safety and Quality.
CSR Promotion System
Facilitating Discussions on Group-Wide CSR Policies and Issues
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 Promotion Team, which consists of CSR exec-
utives from each business division, as well as the Human
Resources, Purchases and Audit departments, discuss and share
responsibility for each policy and issue prior to CSR Committee
meetings. In addition, specialized CSR Organizations (CSR
Offices of each In-house Company) established in each business
division share information globally regarding policies that have
been discussed and shared by the CSR Committee and CSR Pro-
motion Team, and work to promote each policy.
Promoting Social Responsibility across the
Supply Chain
The AGC Group works to solve various social issues including
challenges related to human rights, labor practices, and the envi-
ronment across the entire supply chain, including efforts with sup-
pliers. It emphasizes the importance of corporate social
responsibility in its AGC Group Purchasing Policy, which it revised
in 2009, and encourages its suppliers to follow the policy and
cooperate in its enforcement.
In 2014, the AGC Group formally requested 248 of its main sup-
pliers, including those outside Japan, to cooperate in raising aware-
ness of the AGC Group Purchasing Policy at their worksites. It has
also been conducting surveys of suppliers to determine their status
of implementing CSR activities. The Group conducted a survey of
its major business partners among Group companies in Europe
and North America in 2014, following a similar survey carried out in
Japan in the previous year. In the future, the Group plans to extend
the survey to its Group companies in Asia other than Japan, and
put in place a mechanism to check the results of these surveys.
Excerpt from the AGC Group Purchasing Policy
Items suppliers are requested to cooperate on when promoting CSR in
the supply chain:
1. Concentrate to supply products and services with good quality, considering
Safety & Environment and Compliance to Laws & Regulations of each country.
2. Secure and proper managing of Proprietary information and Intellectual property.
3. Not to be engaged to forced labor or child labor and never tolerate
infringements of human rights.
4. Make efforts to environment preservation and ensuring safety and security.
5. Maintain adequate level of occupational health and safety.
47
AGC Report 2015
WEB
Please refer to the Asahi Glass website for more information about CSR management.
AGC Report 2015 48
Risk Management/
Compliance/
Intellectual Property
Risk Management
Compliance
In accordance with its Corporate Policy over Internal Control, the
AGC Group has established the AGC Group Enterprise Risk
Management Basic Policies. Under these policies, the Group
defines risks that could interfere with achieving its management
objectives, and works to continuously enhance and improve the
ability of its management to prevent risks from occurring and to
respond to any risk that becomes manifest.
Examples of risks managed by the AGC Group:
(cid:127)Natural disasters such as earthquakes
(cid:127)Procurement of resources
(cid:127)Overseas business development
(cid:127)Infectious diseases including pandemic influenza
(cid:127)Environmental regulations
(cid:127)Market conditions with regard to product demand
(cid:127)Occupational accidents
(cid:127)Product liability
Business Continuity Management (BCM) Structure
Formulating BCP Development Guidelines and Promoting
Solid Group-Wide Countermeasures
The AGC Group has formulated business continuity plans (BCP)
in preparation for large-scale accidents or disasters. It has issued
the AGC Group Business Continuity Plan (BCP) Development
Guidelines for divisions and business sites to use when formulat-
ing BCPs, and efforts are progressing based on the business
continuity management (BCM) processes for continuously main-
taining and improving BCPs.
At Asahi Glass’s headquarters, the company implements
annual desktop simulation drills in which top management and
the managers of each division participate. Executive managers
up to the Group CEO participate in an effort to spread informa-
tion and raise the effectiveness of the BCPs.
BCP training at Asahi Glass headquarters in October 2014
49
AGC Report 2015
Raising Awareness of Compliance
Conducting Compliance Training in Each Region
Issued in 12 types covering 18 languages, the AGC Group Code
of Conduct contains guidelines that all employees are required
to follow in their work. The Group has also introduced a system
in which employees periodically submit a personal certification to
follow the AGC Group Code of Conduct. The purpose of the
system is to give employees regular opportunities to renew their
awareness of compliance and recognize its significance in the
workplace and in their own work. In 2014, the certification was
submitted by about 40,000 designated employees, equivalent to
around 80% of all Group employees. In Asia including Japan and
in North America, excluding new Group companies, the subject
coverage rate was 100%.
As a means to raise awareness of its Code of Conduct globally,
the AGC Group is stepping up its compliance training programs
for employees around the world. The Group continually imple-
ments compliance-related online training
(e-learning) in Japan, Europe and North
America. The Group also proactively pro-
motes training activities intended to rein-
force compliance in each country and
region, including classroom training as well
as the production of training materials that
include illustrations and quizzes, compli-
ance pocket-sized cards, video materials
for training and educational posters.
Globally Establishing Help Lines
Committed to Promoting Awareness and Protecting Callers
The AGC Group has established several varieties of help line to
serve as points of contact regarding compliance. As a general
rule, help lines are set up at each company, while additional,
common help lines are established in Europe, North America,
China, Japan, South Korea and Thailand.
To encourage employees to use the help lines, the Group pro-
tects the anonymity of consultants and strictly forbids any act of
retaliation against anyone who makes a report in good faith.
When consultants offer their real names, efforts are made to facili-
tate effective two-way communication and provide feedback on
the status and results of handling reported issues.
In addition, the Group is making efforts to promote awareness
of its help lines so that its members do not hesitate to use them
if necessary.
Compliance with Antitrust Laws
Ensuring Fair Transactions with Thorough Compliance of
Guidelines, Training and Audits
Intellectual Property
The AGC Group regards intellectual property rights, such as pat-
ents, utility model rights, trademarks, design rights and copyrights
In addition to the Group Code of Conduct, the AGC Group has
as important intangible assets. In addition to creating intellectual
formulated and implemented global guidelines for compliance
property as a vital business strategy resource, the Group works to
with antitrust laws. Under the guidelines, the legitimacy of having
protect and increase it, and promotes the preemptive use of intel-
a meeting with a competitor company must be thoroughly vetted
lectual property in order to heighten its competitive advantage.
first. As a means to minimize the necessity of such meetings,
For example, the Group globally files applications for inven-
employees must gain approval to participate from a supervisor in
tions created at development sites in each country and works to
advance, and then submit meeting minutes and a report to the
acquire rights adapted to its business activities. Since the proce-
supervisor after the meeting. The Group is also carrying out vari-
dures for the protection of intellectual property differ by country,
ous other measures, such as providing training on compliance
rights acquisition is conducted in cooperation with local patent
with antitrust laws in each region and organization, and conduct-
attorney offices and Group companies.
ing audits on the status of compliance with relevant guidelines.
Cycle of Intellectual Property Creation
Investment in
research and
resulting
inventions
Creation
Major investment for
development and
commercialization
Profits through
commercialization
Utilization
Exclusion of others within the
scope of acquired rights
(removal rights)
Topics
Acquisition
of patents
Protection
Public disclosure
Stimulate development
by others
Selected as One of the World’s 100 Most Innovative
Companies and Organizations for Two Years Running
For the second year in a row, Asahi Glass was
recognized as one of the world’s 100 most inno-
vative companies and organizations with a 2014
Top 100 Global Innovators Award, sponsored by
Thomson Reuters. Thomson Reuters analyzes
world trends in intellectual property and patents
and selects companies and universities that are
at the center of technological innovation to
receive the award, which is in its fourth year.
Evaluation criteria are organized into four categories: patent suc-
cess rate, internationalization, influence, and volume. As with last
year, in light of the balance of its patent acquisition in the four major
markets of China, Europe, Japan and America, Asahi Glass was
Classroom antitrust law training in China
Preventative Measures for Corruption and Graft
Reinforcing Training Regarding Preventative Measures for
Corruption and Graft
The AGC Group Code of Conduct stipulates that the AGC
Group will maintain sound relationships with government agen-
cies and other responsible organizations, and the Group works to
comply with each country and region’s laws and regulations
regarding anti-corruption.
In addition, as the prevention of bribery and other corrupt
practices is being reinforced worldwide, the AGC Group is pro-
actively promoting employee education. In 2014, training related
to anti-corruption was implemented for compliance managers
and management from Thailand, Indonesia, the Philippines,
Taiwan and South Korea. In China, the regional headquarters,
AGC China, reinforced its anti-corruption training initiatives.
The anti-corruption frameworks at each site are globally
given a particularly high evaluation for its internationalization,
audited as priority internal audit items.
which led to its selection for the award.
WEB
Please visit the Asahi Glass website for more detailed information about risk management, compliance, and intellectual property.
AGC Report 2015 50
Risk Management/
Compliance/
Intellectual Property
Risk Management
Compliance
In accordance with its Corporate Policy over Internal Control, the
AGC Group has established the AGC Group Enterprise Risk
Management Basic Policies. Under these policies, the Group
Raising Awareness of Compliance
Conducting Compliance Training in Each Region
defines risks that could interfere with achieving its management
Issued in 12 types covering 18 languages, the AGC Group Code
objectives, and works to continuously enhance and improve the
of Conduct contains guidelines that all employees are required
ability of its management to prevent risks from occurring and to
to follow in their work. The Group has also introduced a system
respond to any risk that becomes manifest.
Examples of risks managed by the AGC Group:
(cid:127)Natural disasters such as earthquakes
(cid:127)Procurement of resources
(cid:127)Overseas business development
(cid:127)Infectious diseases including pandemic influenza
(cid:127)Environmental regulations
(cid:127)Market conditions with regard to product demand
(cid:127)Occupational accidents
(cid:127)Product liability
in which employees periodically submit a personal certification to
follow the AGC Group Code of Conduct. The purpose of the
system is to give employees regular opportunities to renew their
awareness of compliance and recognize its significance in the
workplace and in their own work. In 2014, the certification was
submitted by about 40,000 designated employees, equivalent to
around 80% of all Group employees. In Asia including Japan and
in North America, excluding new Group companies, the subject
coverage rate was 100%.
As a means to raise awareness of its Code of Conduct globally,
the AGC Group is stepping up its compliance training programs
for employees around the world. The Group continually imple-
Business Continuity Management (BCM) Structure
Formulating BCP Development Guidelines and Promoting
Solid Group-Wide Countermeasures
ments compliance-related online training
(e-learning) in Japan, Europe and North
America. The Group also proactively pro-
motes training activities intended to rein-
The AGC Group has formulated business continuity plans (BCP)
force compliance in each country and
in preparation for large-scale accidents or disasters. It has issued
region, including classroom training as well
the AGC Group Business Continuity Plan (BCP) Development
as the production of training materials that
Guidelines for divisions and business sites to use when formulat-
include illustrations and quizzes, compli-
ing BCPs, and efforts are progressing based on the business
ance pocket-sized cards, video materials
continuity management (BCM) processes for continuously main-
for training and educational posters.
taining and improving BCPs.
At Asahi Glass’s headquarters, the company implements
annual desktop simulation drills in which top management and
the managers of each division participate. Executive managers
tion and raise the effectiveness of the BCPs.
up to the Group CEO participate in an effort to spread informa-
The AGC Group has established several varieties of help line to
Globally Establishing Help Lines
Committed to Promoting Awareness and Protecting Callers
serve as points of contact regarding compliance. As a general
rule, help lines are set up at each company, while additional,
common help lines are established in Europe, North America,
China, Japan, South Korea and Thailand.
To encourage employees to use the help lines, the Group pro-
tects the anonymity of consultants and strictly forbids any act of
retaliation against anyone who makes a report in good faith.
When consultants offer their real names, efforts are made to facili-
tate effective two-way communication and provide feedback on
the status and results of handling reported issues.
In addition, the Group is making efforts to promote awareness
of its help lines so that its members do not hesitate to use them
BCP training at Asahi Glass headquarters in October 2014
if necessary.
49
AGC Report 2015
Compliance with Antitrust Laws
Ensuring Fair Transactions with Thorough Compliance of
Guidelines, Training and Audits
In addition to the Group Code of Conduct, the AGC 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. As a means to minimize the necessity of such meetings,
employees must gain approval to participate from a supervisor in
advance, and then submit meeting minutes and a report to the
supervisor after the meeting. The Group is also carrying out vari-
ous other measures, such as providing training on compliance
with antitrust laws in each region and organization, and conduct-
ing audits on the status of compliance with relevant guidelines.
Intellectual Property
The AGC Group regards intellectual property rights, such as pat-
ents, utility model rights, trademarks, design rights and copyrights
as important intangible assets. In addition to creating intellectual
property as a vital business strategy resource, the Group works to
protect and increase it, and promotes the preemptive use of intel-
lectual property in order to heighten its competitive advantage.
For example, the Group globally files applications for inven-
tions created at development sites in each country and works to
acquire rights adapted to its business activities. Since the proce-
dures for the protection of intellectual property differ by country,
rights acquisition is conducted in cooperation with local patent
attorney offices and Group companies.
Cycle of Intellectual Property Creation
Investment in
research and
resulting
inventions
Creation
Major investment for
development and
commercialization
Acquisition
of patents
Protection
Public disclosure
Stimulate development
by others
Profits through
commercialization
Utilization
Exclusion of others within the
scope of acquired rights
(removal rights)
Topics
Selected as One of the World’s 100 Most Innovative
Companies and Organizations for Two Years Running
For the second year in a row, Asahi Glass was
recognized as one of the world’s 100 most inno-
vative companies and organizations with a 2014
Top 100 Global Innovators Award, sponsored by
Thomson Reuters. Thomson Reuters analyzes
world trends in intellectual property and patents
and selects companies and universities that are
at the center of technological innovation to
receive the award, which is in its fourth year.
Evaluation criteria are organized into four categories: patent suc-
cess rate, internationalization, influence, and volume. As with last
year, in light of the balance of its patent acquisition in the four major
markets of China, Europe, Japan and America, Asahi Glass was
given a particularly high evaluation for its internationalization,
which led to its selection for the award.
Classroom antitrust law training in China
Preventative Measures for Corruption and Graft
Reinforcing Training Regarding Preventative Measures for
Corruption and Graft
The AGC Group Code of Conduct stipulates that the AGC
Group will maintain sound relationships with government agen-
cies and other responsible organizations, and the Group works to
comply with each country and region’s laws and regulations
regarding anti-corruption.
In addition, as the prevention of bribery and other corrupt
practices is being reinforced worldwide, the AGC Group is pro-
actively promoting employee education. In 2014, training related
to anti-corruption was implemented for compliance managers
and management from Thailand, Indonesia, the Philippines,
Taiwan and South Korea. In China, the regional headquarters,
AGC China, reinforced its anti-corruption training initiatives.
The anti-corruption frameworks at each site are globally
audited as priority internal audit items.
WEB
Please visit the Asahi Glass website for more detailed information about risk management, compliance, and intellectual property.
AGC Report 2015 50
Board of Directors,
Corporate Auditors
and Executive Officers
(As of 27 March, 2015)
Board of Directors
Corporate Auditors
Apr. 1980
Jan. 2009
Jan. 2010
Jan. 2013
Jan. 2015
Mar. 2015
Joined Asahi Glass
Executive Officer and GM of
Planning & Coordination Office,
Chemicals Company
Executive Officer and Chemicals
Company President
Senior Executive Officer and
Electronics Company President
President & CEO
Representative Director and
President & CEO (Incumbent)
Aug. 1990
Jan. 2010
Nov. 2012
Feb. 2013
Oct. 2013
Jan. 2014
Jan. 2015
Mar. 2015
Joined Asahi Glass
Executive Officer and Group Leader
of Corporate Planning Group, Office
of the President
Executive Officer (Senior Vice
President of AGC Flat Glass North
America)
Executive Officer and Regional
President of North America, Glass
Company
Executive Officer and GM of
Strategy Office, Glass Company
Executive Officer and GM of
Electronics General Division,
Electronics Company
Senior Executive Officer and GM of
Office of the President
Director and Senior Executive
Officer of Office of the President
(Incumbent)
Apr. 1976
Jun. 1999
Jun. 2001
Jun. 2005
Jun. 2006
Jun. 2012
Mar. 2013
Jun. 2014
Joined Japan Tobacco and Salt
Public Corporation (currently Japan
Tobacco Inc.)
Director of Japan Tobacco Inc.
Retired as Director of Japan
Tobacco Inc.
Director of Japan Tobacco Inc.
President and CEO of Japan
Tobacco Inc.
Chairman of Japan Tobacco Inc.
Director of Asahi Glass (Incumbent)
Special Advisor to Japan Tobacco
Inc. (Incumbent)
[Significant concurrent positions]
Special Advisor to Japan Tobacco Inc.
Apr. 1979
Jan. 2006
Jan. 2007
Mar. 2008
Jan. 2010
Jan. 2015
Joined Asahi Glass
Executive Officer
Senior Executive Officer and GM of
Electronics & Energy General Div.
Director and President & COO
Director and President & CEO
Representative Director & Chairman
(Incumbent)
Kazuhiko Ishimura
Representative Director &
Chairman
Takuya Shimamura
Representative Director
and President & CEO
Apr. 1987
Jan. 2012
Jan. 2014
Mar. 2014
Joined Asahi Glass
Executive Officer and GM of
Business Development Office
Senior Executive Officer and GM of
Technology General Division
Director and Senior Executive
Officer and GM of Technology
General Division (Incumbent)
Yoshinori Hirai
Director
Shinji Miyaji
Director
Hiroshi Kimura
Director (Outside)
Apr. 1963
Jun. 1989
Jun. 2001
Jun. 2007
Mar. 2011
Jun. 2013
Joined Komatsu Ltd.
Director of Komatsu
President of Komatsu
Chairman of Komatsu
Director of Asahi Glass (Incumbent)
Councilor to Komatsu Ltd.
(Incumbent)
[Significant concurrent positions]
Councilor to Komatsu Ltd.
Outside Director of Tokyo Electron Ltd.
Outside Director of Nomura Holdings, Inc.
Outside Director of Nomura Securities Co., Ltd.
Outside Director of Takeda Pharmaceutical
Co., Ltd.
Apr. 1980
Sep. 1986
Jun. 1988
Dec. 1993
Nov. 2001
Apr. 2009
Mar. 2014
Mar. 2015
Joined Citibank, N.A., Tokyo Branch
Joined Salomon Brothers Inc., New
York Head Office
Joined Salomon Brothers Asia Ltd,
Tokyo Branch
Joined S.G. Warburg & Co., Ltd.
Tokyo Branch
Executive Director of the Harvard
Business School Japan Research
Center
Director of the University of Tokyo
Director of Asahi Glass (Incumbent)
Retired as Director of the University
of Tokyo
Masahiro Sakane
Director (Outside)
Masako Egawa
Director (Outside)
51
AGC Report 2015
Apr. 1973
Mar. 2005
Joined Asahi Glass
Executive Officer and GM of
Finance Center
Jan. 2007
Senior Executive Officer and GM of
Financial Planning Office
Mar. 2008
Senior Executive Officer and GM of
Financial Planning Office
Mar. 2013
Corporate Auditor (Incumbent)
Shukichi Umemoto
Corporate Auditor
Yasushi Marumori
Corporate Auditor
(Outside)
Apr. 1977
May 2004
Joined Bank of Japan
Head of Information System Services
Department of Bank of Japan
Apr. 2007
Head of Internal Auditors’ Affairs
Jun. 2009
Jun. 2009
Jun. 2013
Jul. 2013
Office of Bank of Japan
Retired from Bank of Japan
Corporate Auditor of the Bank of
Yokohama, Ltd.
Retired from the previous position
Adviser of Transportation Security
Services of NIPPON EXPRESS CO.,
LTD (Incumbent)
Mar. 2014
Asahi Glass Corporate Auditor
(Incumbent)
Hiroshi Kawamura
Jan. 2014
Corporate Auditor
(Outside)
Apr. 1981
Joined Mitsubishi Bank (Currently the
Bank of Tokyo-Mitsubishi UFJ, Ltd.)
Apr. 2008
Executive Officer of the Bank of
Tokyo-Mitsubishi UFJ, Ltd.
May 2011
Senior Executive Officer of the Bank
of Tokyo-Mitsubishi UFJ, Ltd.
Jun. 2012
Executive Vice President of
Mitsubishi UFJ Research and
Consulting Co., Ltd.
Jun. 2012
Dec. 2014
Mar. 2015
Mar. 2015
Retired from the previous position
Director of Mitsubishi UFJ Research
and Consulting Co., Ltd.
Retired from the previous position
Asahi Glass Corporate Auditor
(Incumbent)
[Significant concurrent positions]
Outside Corporate Auditor at the Nanto Bank, Ltd.
Apr. 1977
Tokyo District Public Prosecutors
Office, Public Prosecutor
Jul. 2008
Supreme Public Prosecutors Office
Trial Manager
Jan. 2009
Chiba District Public Prosecutors
Office, Chief Public Prosecutor
Apr. 2010
Yokohama District Public Prosecutors
Office, Chief Public Prosecutor
Jan. 2012
Sapporo High Public Prosecutors
Office, Superintending Prosecutor
Nagoya High Public Prosecutors
Office, Superintending Prosecutor
Jan. 2015
Mar. 2015
Retired from the above office
Asahi Glass Corporate Auditor
(Incumbent)
Toru Hara
Corporate Auditor
(Outside)
Executive Officers
President & CEO
Takuya Shimamura
CEO
(Leader of AGC Group
Improvement Activities)
Executive Vice President
Yoshiaki Tamura
President of Glass Company
Senior Executive Officers
Marehisa Ishiko
GM of Automotive General
Division, Glass Company
Jean-François Heris
GM of Building & Industrial
General Division, Glass
Company; President & CEO of
AGC Glass Europe
Yasumasa Nakao
GM of Technology General
Division, Glass Company
Yoshinori Hirai
Overall Business Management(Technology and
Business Development);
GM of Technology General Division;
Tokio Matsuo
GM of CSR Office
Akinobu Shimao
Oversight of Electronics Company and Applied Glass
President of AGC Ceramics Co., Ltd.
Materials General Division
Takayasu Ide
GM of Technology Management
General Div.,
Chemicals Company
Seigo Washinoue
Deputy Leader of AGC Group Improvement Activities
Tomoya Takigawa
Deputy GM of Display Glass General
Deputy Leader of AGC Group Improvement Activities
Kimikazu Ichikawa
Tetsuo Tatsuno
GM of Finance & Control Office
Shinji Miyaji
Overall Business Management(Finance);
GM of Office of the President
Yoshinori Kobayashi
President of Electronics Company
Masao Nemoto
President of Chemicals Company
Executive Officers
Tadayuki Oi
GM of Strategy & Planning Office, Glass Company
Shinichi Kawakami
GM of Human Resources & Administration Office
GM of Production Technology Center,
Div., ;
Technology General Division
Takashi Shimbo
Chief Representative of AGC Group
for China
Chief Representative of AGC Group
for Southeast Asia
Kazuyoshi Watanabe
GM of Display Glass General Div.,
Electronics Company
Kihachiro Okamoto
Deputy GM of Automotive General
Division, Glass Company
Shigekuni Inoue
GM of Applied Glass Materials
General Division
Hiroyuki Watanabe
GM of Research Center, Technology
General Division
GM of Marketing & Sales
Management Div.,
Display Glass General Div.,
Electronics Company
Kazuaki Koga
GM of Essential Chemicals General
Div., Chemicals Company
Kenzo Moriyama
Group Leader of Corporate Planning
Group, Office of the President
Takashizu Minato
GM of Performance Chemicals
General Div., Chemicals Company
Masahiro Takeda
Deputy GM of Building & Industrial
General Div., GlassCompany;
GM of Japan/Asia Pacific Div.,
Building & Industrial General Div.,
Glass Company
(Abbreviation)"GM": General Manager
AGC Report 2015 52
Board of Directors,
Corporate Auditors
and Executive Officers
(As of 27 March, 2015)
Apr. 1980
Jan. 2009
Joined Asahi Glass
Executive Officer and GM of
Planning & Coordination Office,
Chemicals Company
Jan. 2010
Executive Officer and Chemicals
Company President
Jan. 2013
Senior Executive Officer and
Electronics Company President
Jan. 2015
Mar. 2015
President & CEO
Representative Director and
President & CEO (Incumbent)
Aug. 1990
Jan. 2010
Joined Asahi Glass
Executive Officer and Group Leader
of Corporate Planning Group, Office
of the President
Nov. 2012
Executive Officer (Senior Vice
President of AGC Flat Glass North
America)
Company
Feb. 2013
Executive Officer and Regional
President of North America, Glass
Oct. 2013
Executive Officer and GM of
Strategy Office, Glass Company
Jan. 2014
Executive Officer and GM of
Electronics General Division,
Electronics Company
Jan. 2015
Senior Executive Officer and GM of
Office of the President
Mar. 2015
Director and Senior Executive
Officer of Office of the President
(Incumbent)
Apr. 1976
Joined Japan Tobacco and Salt
Public Corporation (currently Japan
Tobacco Inc.)
Jun. 1999
Jun. 2001
Director of Japan Tobacco Inc.
Retired as Director of Japan
Tobacco Inc.
Jun. 2005
Jun. 2006
Director of Japan Tobacco Inc.
President and CEO of Japan
Tobacco Inc.
Jun. 2012
Mar. 2013
Jun. 2014
Chairman of Japan Tobacco Inc.
Director of Asahi Glass (Incumbent)
Special Advisor to Japan Tobacco
Inc. (Incumbent)
[Significant concurrent positions]
Special Advisor to Japan Tobacco Inc.
Apr. 1979
Jan. 2006
Jan. 2007
Mar. 2008
Jan. 2010
Jan. 2015
Joined Asahi Glass
Executive Officer
Senior Executive Officer and GM of
Electronics & Energy General Div.
Director and President & COO
Director and President & CEO
Representative Director & Chairman
(Incumbent)
Apr. 1987
Jan. 2012
Joined Asahi Glass
Executive Officer and GM of
Business Development Office
Jan. 2014
Senior Executive Officer and GM of
Technology General Division
Mar. 2014
Director and Senior Executive
Officer and GM of Technology
General Division (Incumbent)
Joined Komatsu Ltd.
Director of Komatsu
President of Komatsu
Chairman of Komatsu
Apr. 1963
Jun. 1989
Jun. 2001
Jun. 2007
Mar. 2011
Jun. 2013
Director of Asahi Glass (Incumbent)
Councilor to Komatsu Ltd.
(Incumbent)
[Significant concurrent positions]
Councilor to Komatsu Ltd.
Outside Director of Tokyo Electron Ltd.
Outside Director of Nomura Holdings, Inc.
Outside Director of Nomura Securities Co., Ltd.
Outside Director of Takeda Pharmaceutical
Co., Ltd.
Apr. 1980
Sep. 1986
Joined Citibank, N.A., Tokyo Branch
Joined Salomon Brothers Inc., New
York Head Office
Jun. 1988
Joined Salomon Brothers Asia Ltd,
Dec. 1993
Joined S.G. Warburg & Co., Ltd.
Nov. 2001
Executive Director of the Harvard
Business School Japan Research
Tokyo Branch
Tokyo Branch
Center
Apr. 2009
Mar. 2014
Mar. 2015
Director of the University of Tokyo
Director of Asahi Glass (Incumbent)
Retired as Director of the University
of Tokyo
Yoshinori Hirai
Director
Shinji Miyaji
Director
Masahiro Sakane
Director (Outside)
Hiroshi Kimura
Director (Outside)
Masako Egawa
Director (Outside)
51
AGC Report 2015
Board of Directors
Corporate Auditors
Kazuhiko Ishimura
Representative Director &
Chairman
Takuya Shimamura
Representative Director
and President & CEO
Shukichi Umemoto
Corporate Auditor
Yasushi Marumori
Corporate Auditor
(Outside)
Apr. 1973
Mar. 2005
Jan. 2007
Mar. 2008
Mar. 2013
Joined Asahi Glass
Executive Officer and GM of
Finance Center
Senior Executive Officer and GM of
Financial Planning Office
Senior Executive Officer and GM of
Financial Planning Office
Corporate Auditor (Incumbent)
Apr. 1981
Apr. 2008
May 2011
Jun. 2012
Jun. 2012
Dec. 2014
Mar. 2015
Mar. 2015
Joined Mitsubishi Bank (Currently the
Bank of Tokyo-Mitsubishi UFJ, Ltd.)
Executive Officer of the Bank of
Tokyo-Mitsubishi UFJ, Ltd.
Senior Executive Officer of the Bank
of Tokyo-Mitsubishi UFJ, Ltd.
Executive Vice President of
Mitsubishi UFJ Research and
Consulting Co., Ltd.
Retired from the previous position
Director of Mitsubishi UFJ Research
and Consulting Co., Ltd.
Retired from the previous position
Asahi Glass Corporate Auditor
(Incumbent)
[Significant concurrent positions]
Outside Corporate Auditor at the Nanto Bank, Ltd.
Apr. 1977
Jul. 2008
Jan. 2009
Apr. 2010
Jan. 2012
Jan. 2014
Jan. 2015
Mar. 2015
Tokyo District Public Prosecutors
Office, Public Prosecutor
Supreme Public Prosecutors Office
Trial Manager
Chiba District Public Prosecutors
Office, Chief Public Prosecutor
Yokohama District Public Prosecutors
Office, Chief Public Prosecutor
Sapporo High Public Prosecutors
Office, Superintending Prosecutor
Nagoya High Public Prosecutors
Office, Superintending Prosecutor
Retired from the above office
Asahi Glass Corporate Auditor
(Incumbent)
Hiroshi Kawamura
Corporate Auditor
(Outside)
Tokio Matsuo
GM of CSR Office
Akinobu Shimao
President of AGC Ceramics Co., Ltd.
Tomoya Takigawa
GM of Production Technology Center,
Technology General Division
Takashi Shimbo
Chief Representative of AGC Group
for China
Kimikazu Ichikawa
Chief Representative of AGC Group
for Southeast Asia
Kazuyoshi Watanabe
GM of Display Glass General Div.,
Electronics Company
Kihachiro Okamoto
Deputy GM of Automotive General
Division, Glass Company
Shigekuni Inoue
GM of Applied Glass Materials
General Division
Hiroyuki Watanabe
GM of Research Center, Technology
General Division
Takayasu Ide
GM of Technology Management
General Div.,
Chemicals Company
Seigo Washinoue
Deputy GM of Display Glass General
Div., ;
GM of Marketing & Sales
Management Div.,
Display Glass General Div.,
Electronics Company
Kazuaki Koga
GM of Essential Chemicals General
Div., Chemicals Company
Kenzo Moriyama
Group Leader of Corporate Planning
Group, Office of the President
Takashizu Minato
GM of Performance Chemicals
General Div., Chemicals Company
Masahiro Takeda
Deputy GM of Building & Industrial
General Div., GlassCompany;
GM of Japan/Asia Pacific Div.,
Building & Industrial General Div.,
Glass Company
(Abbreviation)"GM": General Manager
AGC Report 2015 52
Apr. 1977
May 2004
Apr. 2007
Jun. 2009
Jun. 2009
Jun. 2013
Jul. 2013
Mar. 2014
Joined Bank of Japan
Head of Information System Services
Department of Bank of Japan
Head of Internal Auditors’ Affairs
Office of Bank of Japan
Retired from Bank of Japan
Corporate Auditor of the Bank of
Yokohama, Ltd.
Retired from the previous position
Adviser of Transportation Security
Services of NIPPON EXPRESS CO.,
LTD (Incumbent)
Asahi Glass Corporate Auditor
(Incumbent)
Toru Hara
Corporate Auditor
(Outside)
Executive Officers
President & CEO
Takuya Shimamura
CEO
(Leader of AGC Group
Improvement Activities)
Executive Vice President
Yoshiaki Tamura
President of Glass Company
Senior Executive Officers
Marehisa Ishiko
GM of Automotive General
Division, Glass Company
Jean-François Heris
GM of Building & Industrial
General Division, Glass
Company; President & CEO of
AGC Glass Europe
Yasumasa Nakao
GM of Technology General
Division, Glass Company
Yoshinori Hirai
Overall Business Management(Technology and
Business Development);
GM of Technology General Division;
Oversight of Electronics Company and Applied Glass
Materials General Division
Deputy Leader of AGC Group Improvement Activities
Tetsuo Tatsuno
GM of Finance & Control Office
Shinji Miyaji
Overall Business Management(Finance);
GM of Office of the President
Deputy Leader of AGC Group Improvement Activities
Yoshinori Kobayashi
President of Electronics Company
Masao Nemoto
President of Chemicals Company
Executive Officers
Tadayuki Oi
GM of Strategy & Planning Office, Glass Company
Shinichi Kawakami
GM of Human Resources & Administration Office
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AGC Report 2015
Main Communication Tools Used to Reach Each of Our Stakeholders
Financial Information
The AGC Group’s
Corporate Vision and
Business Activities
Non-Financial Information
(Sustainability Reporting)
For Comprehensive
Information
Financial Review
(PDF file only)
Reports the AGC Group’s
business outline and
financial information
including consolidated
financial statements
AGC Report 2015
(This report)
For customers
(including general consumers)
CSR Website
www.agc.com/english/csr/
Provides a comprehensive report
on the AGC Group’s efforts to
fulfill its social responsibilities.
Based on the “core” of G41
1 The 4th edition of the GRI
Sustainability Reporting Guidelines
CSR Information
Supplement
(PDF file only)
Reports on the AGC
Group’s non-financial
data and its various CSR
policies and organizations
for promoting
CSR-related activities
AGC Website
www.agc-group.com/
Provides information
about the AGC Group
more widely, timely and
in more detail
For shareholders and investors
For CSR-related experts (ESG research agencies, etc.) and
other stakeholders with an interest in CSR
Scope
(cid:127) Reporting Period: Fiscal 2014 (Jan.–Dec. 2014)
(cid:127) Primary Notation and Report Targets Used in the Report
Some information includes content from both fiscal 2013 and 2015
(cid:127) Organizations Covered in the Report: Asahi Glass and its 194
consolidated subsidiaries (Group companies in and outside Japan)
The AGC Group
Same as “Organizations Covered in the Report” mentioned at left.
The AGC Group (Japan)
Group companies in Japan including Asahi Glass Co., Ltd.
Asahi Glass/the Company
Asahi Glass Co. Ltd. (on an unconsolidated basis)
Related Information
WEB
Articles with this mark have related information on the AGC website (www.agc-group.com/).
Date of Publication
May 2015 (Last date of publication: May 2014)
Regarding Future Assumption, 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.
www.agc-group.com
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
Printed on paper made with wood
from forest thinning.“Morino Chonai
Kai” (Forest Neighborhood
Association) —Supporting sound
forest management.
All rights reserved. Unauthorized reproduction of this report is a violation of applicable laws.