AGC Report 2016
AGC, an Everyday Essential Part of Our World
AGC’s unique materials and solutions make people’s lives better
around the world every day
1
AGC Report 2016
AGC Group Vision
®
is the AGC Group’s corporate philosophy on which all the activities
of the Group are founded.
The following thoughts are expressed in
.
We will continue to
Anticipate and envision the future,
Have perspectives beyond our own fields of expertise,
Pursue innovations, not becoming complacent with the status quo.
We will continue to create value worldwide, demonstrating the vast potential
of the Group’s entire organization.
Structure and elements of
Our Mission
“Our Mission” expresses the value that the Group
should offer to the world, and represents the
reason why the AGC Group exists.
Our Shared Values
“Our Shared Values” expresses the key ideas that
all AGC Group members must share as the basis
for every action we take.
Our Spirit
This founding spirit is precisely the ‘AGC spirit’
that has been handed down from generation to
generation and shared by all Group members.
Our Mission
AGC, an everyday essential part of our world
—AGC’s unique materials and solutions make people’s lives better around the world every day—
We, the AGC Group, aim to continue being the “first choice” solution provider for our customers by building long-term trusted relationships
with them through unique materials and solutions developed using our wide-ranging material and production technologies. We will continue
offering products and solutions that customers and society need, thereby making people’s lives better around the world every day.
Our Shared Values
Innovation & Operational excellence
• We will continuously seek innovations in the technology, products and services we provide by thinking beyond conventional ideas
and frameworks.
• We will continuously create new value which satisfies the needs of our potential and future customers by thinking from the
customer’s perspective and accurately forecasting the changes in society and markets.
• We will continuously improve our operations for maximum efficiency and quality in every activity and will strive for the highest
possible standard of performance.
Diversity
Environment
Integrity
• We will respect individuals with
different capabilities and personalities,
and our global management will
operate without regard to nationality,
gender or background.
• We will respect cultural diversity
regardless of race, ethnicity, religion,
language, and nationality.
• We will respect different perspectives
and opinions at all times.
Our Spirit
• We, as good global citizens, will
contribute to the creation of a sustain-
able society in harmony with nature.
• We will strive to ensure and further
improve occupational health and safety
in our working environment.
• We will build open and fair relationships
with all of our stakeholders based on
the highest ethical standards.
• We will strictly comply with applicable
laws and regulations.
• We will fulfill our responsibilities in
relation to all the products and
services we provide to achieve
customer satisfaction and trust.
“Never take the easy way out, but confront difficulties.”
The founding spirit of Toshiya Iwasaki, who established Asahi Glass Company in 1907.
AGC Report 2016 2
Message from the President and CEO
Takuya Shimamura
Representative Director,
President and Chief Executive Officer
The AGC Group’s history began more than a century ago,
when Asahi Glass Company took on the challenge of
manufacturing the first flat glass in Japan, with a view to
contribute to people’s lives and the country’s industrial
development. Since that time, the Group has built up
expertise and technologies in the fields of glass, electron-
ics, chemicals and ceramics, while providing solutions to a
wide range of industries, including the building materials,
automotive and electronics industries. After the launch of
its business operations in India in the 1950s, the Group
expanded its business throughout Asia, Europe and
North and South America, and its employees around the
world have been striving for the development of local
economy and society in each region. The basics of our
business is to contribute to society through our unique
materials and solutions developed using the Group’s
expertise and technologies.
Today, amid a major shift in our business environment, we
will keep the basics of our business in our minds and contin-
ue to create value, with all employees and management
working as one team. To this end, we established the
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AGC Report 2016
Through Diverse Technologies, the AGC Group Offers
Solutions that Contribute to People’s Lives Worldwide.
“Vision 2025” in February 2016. It clarifies our aspirations
and vision for the Group in the next 10 years, and lays out
the management strategies for realizing them.
As we strive to achieve our “Vision 2025” goal of becoming
a highly profitable, leading global material and solution
provider, we will continue innovating and offering new
solutions that are indispensable for society. Moreover, we
remain strongly committed to the sustainable development
of countries worldwide with the hope of ensuring a bright
future for our planet. The AGC Group will continue making
positive contributions moving forward to meet the expecta-
tions of our stakeholders around the world.
Takuya Shimamura
Representative Director, President and Chief Executive Officer
AGC Report 2016 4
Long-term Strategy
The AGC Group is Realizing Vision 2025
by Enhancing Core Businesses and Expanding Strategic Businesses.
In February 2016, the AGC Group established Vision 2025,
alongside a long-term management strategy for realizing its
goals. Under the strategy, the Group has designated its
glass, chemicals, display glass and ceramics businesses as
Core Businesses for ensuring stable sources of earnings
over the long term. By designating its mobility, electronics
and life science businesses as Strategic Businesses, it will
aim for high growth in targeted markets. Both of these
business categories will serve as twin pillars for achieving
Vision 2025. Based on the principle of always meeting
customers’ expectations and continuing to earn their trust,
the AGC Group is pursuing strategic mergers, acquisitions
and other investments aimed at generating value and
growth, while working to allocate operational resources
with an emphasis on asset efficiency.
Looking ahead, the AGC Group will continue offering
value to customers and society as it aims to be a highly
profitable, leading global material and solution provider.
“Vision 2025”
By 2025, the AGC Group’s Core Businesses will serve as solid sources of earnings, and
Strategic Businesses will become growth drivers and lead further earnings growth.
In 2025, the AGC Group will continue being a highly profitable,
leading global material and solution provider.
Core Strategy 1
Core businesses
Core Strategy 2
Strategic businesses
Establishing long-term, stable sources of
earnings through the portfolio management
Establishing highly profitable businesses through
expansion of high value-added businesses
Architectural
glass
Automotive
glass
(existing)
Display glass
Mobility
Electronics
Life science
Essential
chemicals
Performance
chemicals
Ceramics
The AGC Group’s competitive advantages
Wide-ranging customer base
Varieties of material technologies
in the field of glass, electronics,
chemicals and ceramics
Production technology
development capability and
operational excellence
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AGC Report 2016
Core Strategy 1 Core businesses
Practicing Comprehensive Portfolio Management
The AGC Group now designates its architectural glass,
automotive glass, chemicals and display glass businesses
as Core Businesses. Through these businesses, the Group
will establish long-term, stable sources of earnings while
focusing on the effective allocation of resources based on
its business portfolio. It will also carry out growth-oriented
investments, including mergers and acquisitions.
The AGC Group has established a strong presence in
Thailand and Indonesia through its glass and chemicals
businesses. By taking advantage of growth in Asia in partic-
ular, this has created opportunity for business expansion
from Southeast Asia to the Middle East (West Asia).
Basic Strategies for Enhancing Core Businesses
Business
Basic strategy
Architectural glass
•Select and concentrate on high growth countries & countries that the Group has a competitive advantage
•Innovative business models to enhance the asset efficiency
Automotive glass
(existing)
Display glass
Essential
chemicals
Performance
chemicals
Ceramics
•Respond to needs for more advanced functions and performance amid the expansion of the Eco-friendly
vehicles and automated driving systems
•Further global expansion by M&A etc.
•Optimize the allocation of production bases to respond to the demand shift in the LCD glass market
•Cultivate markets for new display applications
•Further strengthen the business foundation of Chlor-alkali business in Southeast Asia
•Take advantage of the global demand increase in high performance materials for the growth of the
fluorochemicals business
•Deliver new value propositions with a mix of materials, engineering & services
•Establish business bases in Southeast Asia and expand the global sales
Growth Strategies in Asia
Middle East
(West Asia)
The AGC Group’s business foundations
in glass and chemicals
extend across Asia from Southeast Asia
to the Middle East (West Asia).
Southeast Asia
Main business locations
Glass
Chemicals
AGC Report 2016 6
Long-term Strategy
Core Strategy 2 Strategic businesses
Expanding High Value-added Businesses
Through its Strategic Businesses, the AGC Group is offering
solutions with increased added value, targeting markets
covering the three categories of mobility, electronics and the
life science. The Group’s mobility business provides solutions
that help integrate information and communication technol-
ogy (ICT) in automobiles and construct innovative infrastruc-
tures and new ecosystems for transportation. The electron-
ics business supplies optical materials for digital cameras and
signage-related products and technologies based on the
vision of an Internet of Things (IoT) society, in which all types
of products are interconnected via the Internet. Products in
this business help further diversify input/output devices, as
well as increase the speed of communications and the
capacity of data storage media. Finally, the life science
business provides products that facilitate advanced medical
care and solutions for global food shortages.
The AGC Group’s Solutions for Targeted Markets
Changes in the
social environment
Targeted
markets
Changes in the
market trends
The AGC Group’s solutions
Mobility
•Integration of
automobiles and ICT
•Innovation of
transportation
ecosystem
Advancing automotive
ICT
Innovation in
transportation infrastructure
New ecosystem
in mobility
Electronics
•Diversification of
input/output devices
•Greater speed of
communication and
increased capacity for
data storage media
Evolution of input devices
Contribute to realizing
a “Big Data” society
Innovation in output devices
Life science
•Bipolarization of
needs for advanced
medical care and
low-cost medical care
•Food
shortage/Greater
awareness for food
safety
Supplying advanced
medicinal technology
High-quality and reliable
pharmaceutical/
agrochemical
intermediate
Development of advanced
medical technology
•Evolution of
transportation
infrastructure
•Everything can be
connected
•Anyone can be
connected anytime
•Aging society
•Increase of global
population
•Greater safety,
security, comfort
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AGC Report 2016
Medium-term Strategy
The AGC Group is Establishing the Basis for Long-term Growth
with the Medium-term Management Plan, AGC plus-2017.
By effectively allocating resources and carrying out strate-
gies based on its business portfolio, which has been
created based on the profitability and growth potential for
each of the Group’s businesses, the AGC Group is aiming
to achieve the management and financial targets set under
the medium-term management plan, AGC plus-2017.
Having positioned 2015 as a year for laying the ground-
work for medium- and long-term growth, the AGC Group
proactively invested in growth areas and regions for each of
its businesses, including the construction of a power plant in
Indonesia and the acquisition of an automotive replacement
glass company in Poland. It also made steady changes to the
balance of its business portfolio, improving overall perfor-
mance by restructuring the architectural glass business in
Americas and Europe.
From 2016 through to 2017, the AGC Group plans to
capitalize on its investment results over those two years in
Indonesia, China, and other countries, while aiming for
further growth by expanding new businesses and product
lineups, including cover glass for vehicle interiors, new
refrigerants for vehicle air conditioners and products for life
science applications.
Progress Under the Medium-term Management Plan, AGC plus-2017
2015
2016
2017
2025
Medium-term management plan, AGC plus-2017
Long-term management strategies
for realization of the Vision 2025
Net sales (Billion yen)
1,326.3
Operating profit (Billion yen)
71.2
2015
1,600.0
100
1,400.0
75.0
2016 (Forecast)
2017 (Target)
Management targets
for 2017
Net sales
¥1.6 trillion
Operating profit
More than ¥100 billion
ROE
5% or above
Debt to equity ratio
0.5 or less
Increase Low-E glass (Eco-glass) production capacity by 50% in Thailand
Coating glass production starts in Saudi Arabia
through a joint-venture with Obeikan Glass
Enhanced float production for auto glass starts in Indonesia
Glass
Third automotive glass plant in China starts operation
New plant in Mexico starts operation
Acquired Poland-based NordGlass in order to bolster the automotive replacement glass business
Increase polishing capacity in Shenzhen, China
Electronics
LCD float furnace relocated from Japan to China starts operation
Start LGP glass business
Increase chlor-alkali production capacity in Indonesia
Increase PVC capacity by 50% in Vietnam
Chemicals
Plant for new-generation automotive refrigerant start operation
Power generation plant starts
operation in Indonesia
Increase production capacity of pharmaceutical & agrochemical intermediates and active ingredients
AGC Report 2016 8
Overview of the AGC Group
The AGC Group Creates New Value in the Fields of Glass,
Electronics, Chemicals and Ceramics.
Business Segment (As of the end of December 2015)
GLASS
ELECTRONICS
The AGC Group’s business extends into
four fields: glass, electronics, chemicals and
ceramics. Through more than a century of
technological innovation, the Group has
developed world-leading technologies
and expertise through which it provides
a diverse lineup of products for custom-
ers across a wide range of industries. From
architectural glass and automotive glass
and extending to liquid crystal display
glass and electronic materials—as well as
high-function materials such as chemicals
and ceramics—the AGC Group proposes
new solutions from its unique perspective
as a manufacturer of glass and other mate-
rials. In order to further enrich society, the
AGC Group is constantly pushing the limits
in the creation of new standards of value.
Sales Ratio1
Chemicals
24%
Ceramics/
Other
2%
2015
Net Sales
1,326.3
billion yen
CHEMICALS
Electronics
22%
Glass
52%
Sales Trends (Billion yen)
1,348.3
1,320.0
1,326.3
CERAMICS/
OTHER
2013
2014
2015
(Year)
Note Numeric data is based on International Financial Reporting
Standards (IFRS). (Subject organizations: Asahi Glass Co., Ltd.
and its consolidated subsidiaries / Target period: Each
business year ending December 31)
1 Sales Ratio calculated from sales to external customers.
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AGC Report 2016
Corporate Data
(As of the end of December 2015)
Company Name
AGC Asahi Glass
Founded
September 8, 1907
Outstanding Stock
1,186,705,905 shares
Registered Company Name
ASAHI GLASS CO., LTD
Head Office
1-5-1, Marunouchi, Chiyoda-ku,
Tokyo 100-8405 JAPAN
Incorporated
June 1, 1950
Capital
90,873 million yen
Employees
50,852 (consolidated),
5,973 (non-consolidated)
Consolidated Group Companies
204 (166 overseas)
Sales Ratio1
Sales Trends2 (Billion yen)
Main Businesses and Fields/Main Products
52%
22%
24%
2%
692.9
667.3
686.3
2013
2014
2015 (Year)
346.0
319.7
288.6
2013
2014
2015 (Year)
317.2 318.5
290.7
2013
2014
2015 (Year)
78.6
80.8
68.1
Architectural glass
•Float glass
•Low-emissivity (Low-E) glass
•Double glazing glass for solar control/heat-insulation
•Safety glass
•Decorative glass
Automotive glass
•Tempered automotive glass
•Laminated automotive glass
Display
•Glass substrates for TFT-LCDs
Electronic materials
•CMOS/CCD blue filter
•CMP slurry
•Synthetic quartz glass
•Glass frit and paste
•Glass molded lenses
Applied glass materials
•Cover glass for electronic devices
•Thin glass for electronic devices
•Glass for light guide plates
•Glass for photovoltaic devices
Chlor-alkali and urethane
•Raw materials for vinyl chloride monomer and polymer
•Caustic soda
•Urethane materials
Fluorochemicals and specialty chemicals
•Fluoropolymers/films
•Fluorinated water and oil repellents
•Pharmaceutical and agrochemical intermediates and
active ingredients
•Iodine-related products
Ceramics
•Refractory materials
•Fine ceramics
•Sputtering targets
Logistics/Engineering
2 Sales by business were calculated before elimination, therefore the sum will not match company-wide sales when totaled.
2013
2014
2015 (Year)
AGC Report 2016 10
Product Applications
Glass substrates
for display devices
In a Wide Range of Places and Situations, the AGC Group’s
Diverse Products Support a Safe, Pleasant and Sustainable Society.
Glass materials and components
for optical equipment
Major Products
Glass
Electronics
Chemicals
Ceramics/Other
Supporting Mobility
Beginning with lightweight, high-function automotive
glass, the AGC Group provides a wide range of
products that are vital to transportation equipment.
Fluoropolymer resin
for coatings
Glass substrates for display devices
Glass materials and components
for storage devices
Architectural glass
Bus glass
Supporting Displays
and Optical Equipment
The AGC Group provides materials and components for
electronic equipment used in a variety of business situations.
Train platform
screen doors
Railway glass
Truck glass
Automotive glass
Cover glass for console panels
LED/OLED lighting components
Urethane materials for car seats
Fluoropolymer resins and rubber
for automotive components
Photovoltaic devices for buildings
Glass for office buildings
Laminated safety glass for public facilities
Supporting Construction
and Social Infrastructure
The AGC Group provides architectural materials that contribute to
the creation of safe and pleasant spaces, and industrial materials
that strengthen social infrastructure.
Optical materials
for digital cameras
Glass substrates for display devices
Cover glass for electronic devices
Glass materials and components
for optical equipment
Glass substrates for display devices
Cover glass for electronic devices
Fluoropolymer resin for coatings
Fluoropolymer resin for coatings
Fluoropolymers for membrane structures
(films)
Ceramic material for road surfaces
(heat shielding/anti-skid)
LED/OLED lighting components
Glass integrated digital signage
Show window glass
Insulated glass doors
for refrigerated and frozen showcases
Low-E insulating glass
for residential use
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AGC Report 2016
AGC Report 2016 12
Ultra-lightweight photovoltaic module
Cover glass for lightweight photovoltaic module
Protective fluoropolymer resin film
for photovoltaic devices
Fuel cell-related materials
Supporting
the Environment
The AGC Group provides components and technologies that
contribute to the realization of smart cities and smart mobility.
Sodium hypochlorite
for tap water disinfectants
Washstand mirrors
Heat resistant glass
Fluoropolymers resin for coatings
Fluoroelastomer for petroleum extraction machinery (rubber)
TCO substrates for photovoltaic devices
Glass fiber-reinforced plastic for photovoltaic device frames
Glass-ceramics substrates for high-power LED lighting
Fuel cell-related materials
Materials for lithium-ion battery
Sodium bicarbonate
(infusion solution for artificial dialysis)
Active ingredients for eyedrops
Fluoropolymers for horticultural use
(greenhouse film)
Agrochemical
active
ingredients
Bulking agent
for liquid
chromatography
Caustic soda
(for hand soap)
Filler for cosmetic products
Caustic soda
(for dishwashing detergent)
Sodium bicarbonate
(baking powder)
Supporting
Consumer Products
The AGC Group provides products that bring comfort and convenience
to daily life and many of the materials vital to their creation.
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AGC Report 2016
Supporting Life Science
The AGC Group provides pharmaceuticals and agrochemicals
used in the field of life science, and materials for a wide variety
of its related facilities.
Biopharmaceutical
active ingredients
Lab use ware
Tissue culture ware
Prepared specimens for microscopes
AGC Report 2016 14
Global Network
The AGC Group’s Global Business is Built on Three Regional Pillars:
Japan/Asia, Europe and the Americas.
JAPAN
ASIA
Main Locations
Glass
Electronics
Chemicals
Ceramics/Other
As economic globalization advances, the AGC Group’s
business extends into over 30 countries and regions with
the regional pillars in Japan/Asia, Europe and the Amer-
icas. In its glass business, which has markets around the
world, the Group has product development and manu-
facturing bases in each of these three regions. In its
electronics business, as its client businesses are concen-
trated in East Asia, development and manufacturing
bases are concentrated in Japan and other Asian coun-
tries. In the chemicals business, the Group has been
working on the enhancement of its manufacturing bases
with a focus on Southeast Asia, where infrastructure
development is progressing.
Utilizing such a global network, the AGC Group strives
to expand businesses and grow even deeper roots in
local communities, while exploring opportunities to
develop new business areas.
Sales Ratio1 (As of the end of December 2015)
The Americas
11%
Europe
22%
2015
Net Sales
1,326.3
billion yen
Japan/Asia
67%
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AGC Report 2016
1 Sales Ratio calculated from sales to external customers.
EUROPE
THE
AMERICAS
Japan/Asia
Europe
The Americas
Percentage of
sales by region
67%
Percentage of
sales by region
22%
Percentage of
sales by region
11%
Main Products
Main Products
Main Products
Architectural glass
Automotive glass
Display glass
Electronic materials
Chemicals
Ceramics
Architectural glass
Automotive glass
Chemicals
Architectural glass
Automotive glass
Electronic materials
Chemicals
Employees
Approximately
30,600
Employees
Approximately
16,200
Employees
Approximately
4,100
AGC Report 2016 16
Business Overview
GLASS
The AGC Group provides diverse products and
solutions as a leading architectural glass and
automotive glass manufacturer.
Architectural Glass Business
The AGC Group’s architectural glass business supplies a wide
range of products—such as float glass, fabricated glass,
decorative glass and glass for photovoltaic devices—which
are tailored to the needs of each region and client. The AGC
Group is also committed to the development and sale of
functional glass products that offer comfort and reduce
environmental impact. For buildings, the AGC Group
provides glass with solar control and heat insulation, and glass
with anti-condensation and anti-reflective properties. The
Group’s architectural glass business holds a world-leading
market share.
Market share rankings for main products
(Based on fiscal 2015 estimates by AGC)
Float glass
Global No.1
Low emissivity (Low-E) insulating glass unit
High solar control and heat insulation properties
“ATTOCH™” Low-E glass for
on-site retrofitting installation
Ideal for remodeling buildings and stores
“Clearsight™” anti-reflective glass
Minimizing light reflections on the glass surface
“Lacobel™” painted glass for indoor applications
Outstanding coloring properties making
interiors look brighter
Coating glass
Suitable for all climates
“Sunjoule™” building integrated
photovoltaic devices
Glass with integrated photovoltaics
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AGC Report 2016
Automotive Glass Business
The AGC Group’s automotive glass business holds a
world-leading market share in the sale of laminated glass and
tempered glass. The Group makes use of its global market-
ing functions, production networks and cutting-edge
technologies to pursue greater product safety, design,
comfort and environmental performance. It has a wide
variety of products, including UV cut glass, infrared ray cut
glass, water repellent glass for doors and glass antennas.
Market share rankings for main products
(Based on fiscal 2015 estimates by AGC)
Automotive glass
Global No.1
“Temperlite™” tempered automotive glass
Several times the strength of general-purpose flat glass
“Lamisafe™” laminated automotive glass
Designed with safety in mind, shatterproof even when broken
“UV Verre Premium™” series for automotive glass
A global first!1 All-around 99% UV cut, providing
safety and comfort in the vehicle
1 AGC survey as of November 2015 (when single-glazed glass
is used for everything but the windshield)
Light Control glass “WONDERLITE™”
Contributing to improved in-car comfort and
energy conservation
Glass for railroads
Outstanding weather resistance, sound insulation
and heat insulation
Architectural glass
pursues superior design,
improved comfort and
reduced environmental impact
AGC Report 2016 18
Business Overview
ELECTRONICS
The AGC Group will continue to offer
high value-added products and solutions that support
the evolution of the electronics industry.
Display Business
In its display business, the AGC Group holds a number-two global market share in
glass substrates used for thin-film-transistor (TFT) liquid crystal displays (LCDs). The
Group leverages its unique manufacturing methods and advanced production
techniques to increase its global competitiveness, while focusing on developing
materials for next-generation display devices.
Market share rankings for main products
(Based on fiscal 2015 estimates by AGC)
Glass substrates for TFT-LCDs
Global No.2
Applied Glass Materials Business
With a view to offering new value in the marketplace, the AGC Group established
its Applied Glass Materials General Division in January 2015 by integrating opera-
tions that had previously been divided among its glass business and electronics
business. The division is promoting the advantages of the Group’s “thin, light and
strong” specialty glass in an effort to create new applications, while broadening
the Group’s product lineup, which includes cover glass for smartphones and tablet
devices, and glass substrates for photovoltaic devices and touch panels.
Glass substrates for TFT-LCDs
Key materials for LCD displays
“Leoflex™” chemically strengthened specialty glass
Used for various applications in architecture, solar cells and more
“Dragontrail™ X” specialty glass for
chemical strengthening
Cover glass for electronic devices
Glass substrates for touch panels
The world’s thinnest electronic device glass
TCO substrates for photovoltaic devices
Improving the power generating efficiency of
thin film silicon photovoltaic devices
“XCV™” glass for light guide plates
Enabling liquid crystal displays to be made thinner
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AGC Report 2016
Electronic Materials Business
In its electronic materials business, the AGC Group contrib-
utes to the most advanced sectors of the electronics indus-
try by applying the leading-edge technologies it has
fostered in its glass, chemicals, and ceramics businesses,
including material, processing, surface treatment and
molding technologies. The business supplies a wide lineup
of products, such as synthetic quartz glass—a product
boasting a world-leading market share—as well as high-pu-
rity silicon carbide (SiC) jigs and other semiconductor man-
ufacturing components, CMOS/CCD blue filters and other
optical materials for smartphones and digital cameras, and
glass frit and paste display materials for electrical insulation
and sealing.
Market share rankings for main products
(Based on fiscal 2015 estimates by AGC)
Quartz materials for stepper lenses
Global No.1
CMOS/CCD blue filter
Enabling image sensors to match the luminosity
of the human eye
Synthetic quartz glass
Ensuring high quality in semiconductor processing
Chemical mechanical polishing (CMP) slurry and
polishing solutions
Enabling multi-layered components to be made
extremely flat and even
Glass frit
Used for electrical insulation, airtight seals, and
other applications in various industries
“Roiceram™-HS” high-purity SiC jigs
Used for heat treatment and other
semiconductor processes
Glass substrates for TFT-LCDs
contribute to innovations in
image display technology
AGC Report 2016 20
Business Overview
CHEMICALS
The AGC Group’s products and solutions
help create an affluent, safe and secure society
while promoting environmental conservation.
Chemicals Business
The AGC Group’s chemicals business originally began with
the production of soda ash, the main raw material for
producing glass.
The Group subsequently developed a wide variety of
products through its own chemical chain, which enables full
use of by-products generated through chemical reaction
process. While working to keep its environmental impact to
a minimum, the AGC Group supplies a broad lineup of prod-
ucts ranging from basic chemicals like caustic soda to highly
functional chemicals such as Fluon® ETFE, which holds the
number-one global market share for fluorinated resins.
Market share rankings for main products
(Based on fiscal 2015 estimates by AGC)
Fluorinated resins (Fluon® ETFE)
Global No.1
The AGC Group’s Chemical Chain
Chlor-alkali and urethanes
Fluorochemicals and specialty chemicals
Methane
Fluorite
Hydrofluoric
acid
Gases and solvents
Chlorinated
solvents
Chlorine
Chloroform
HCFC-22
Tetrafluoro-
ethylene
Raw salt
Potassium
chloride
Electrolysis
Liquid chlorine
Sodium
hypochlorite
Caustic soda
Sodium
bicarbonate
Vinyl chloride
monomer
Vinyl chloride
polymer
Caustic
potash
Potassium
carbonate
Epichlorohydrin
Fluorochemicals
Fluorinated gas recovery
and processing
Fluorinated solvents
ASAHIKLIN™
AMOLEA™
HFO-1234yf
Fluorinated water & oil repellents
AsahiGuard™ E-SERIES
Fluoropolymer
Fluon®
Fluoropolymer film
Fluon® ETFE FILM
F-CLEAN™
Fluoroelastomers
AFLAS™
Transparent amorphous
fluoropolymer
CYTOP™
Fluoropolymer ion-exchange
membrane
Flemion™
Fluoroplymer resin for coatings
LUMIFLON™
Hydrogen
Propylene oxide (PO)
Propylene glycol (PG)
Polypropylene
glycol (PPG)
Polyurethanes
Fluorine containing pharmaceutical
& agrochemical intermediates
& active ingredients
Chlor-alkali
Polyurethanes
Life science
21
AGC Report 2016
Chlor-alkali and urethane
In its chlor-alkali and urethane business, the
AGC Group supplies highly versatile basic
chemical products—such as caustic soda
and sodium bicarbonate—used in various
industries. In addition, its urethane-related
products are used as raw materials in
thermal insulation, vehicle seats and other
products that are vital for providing comfort
in our everyday lives.
Fluorochemicals and specialty chemicals
In its fluorine and specialty chemicals
business, the AGC Group’s fluorochemical
products have gained a strong reputation for
their outstanding heat resistance, chemical
resistance and weather resistance. Led by
Fluon® ETFE fluorinated resin—which holds
top global market share—the business’ wide
range of high-performance products are
used in various industries. For example, its
fluorinated resins and fluorinated elastomers
are commonly applied in the automotive and
aircraft industries, and its fluoropolymer films
and fluoropolymer resins for coating are used
in the building construction industry. Likewise,
its multifunctional materials are used in
electronic devices and displays. In addition,
the AGC Group contributes to the life science
industry by supplying services and products
such as pharmaceutical and agrochemical
intermediates and active ingredients.
“EXCENOL™” polymer polyols
Used for products like mattresses
and vehicle seats
“Fluon® ETFE FILM” Fluoropolymer film
Used for a wide range of applications due to its
excellent transparency and weatherability
“LUMIFLON™” highly weather-resistant
fluoropolymer resin for coatings
Used for coating buildings and structures
Sodium bicarbonate
Used widely, including medical applications
such as dialysis fluid
“HFO-1234yf” refrigerant for next-generation
vehicle air-conditioners
Helping to reduce environmental load
Photo HFO-1234yf manufacturing plant
“Tafluprost” pharmaceutical active ingredients
Used in medications for treating glaucoma
Note A glaucoma and ocular hypertension therapeutic agent
jointly developed with Santen Pharmaceutical Co., Ltd.
Fluon® ETFE FILM
used for the Allianz Arena,
a soccer stadium in Germany
AGC Report 2016 22
Business Overview
CERAMICS/
OTHER
The AGC Group offers a variety of products and solutions
that contribute to innovation in glass production
processes and environmental conservation.
Ceramics Business
The AGC Group’s ceramics business has a long history, dating
back to 1916, when it began producing refractory bricks for
glass melting furnaces. The business is now operated by AGC
Ceramics Co., Ltd. With its core businesses in glass engineer-
ing, environmental and energy-related domains, the compa-
ny leverages its diverse lineup of refractory products and
leading-edge engineering technologies.
In the glass engineering business, the company aims to
help its customers improve energy efficiency and extend the
service life of their glass furnaces, as well as ensure stable oper-
ations and lower lifecycle costs by supplying high-durability,
high-performance fused cast bricks and related solutions.
In environmental and energy-related businesses, AGC
Ceramics offers a wide range of ecological solutions, imple-
menting castable refractories that make industrial furnaces
more energy efficient and reduce environmental load. The
company also focuses on developing ceramic materials that
help reduce global environmental impact, such as high-tem-
perature fine ceramic fans and sputtering targets for
eco-friendly glass.
“Tough Coore™” ceramic material for
heat shielding road surfaces
Alleviates heat island phenomenon
“THERMOTECT™” high thermal insulating
ceramic furnace materials
Outstanding durability and heat insulation for
long-term insulation performance under high
temperatures, helping to reduce costs by
conserving energy
Castable refractories for industrial furnaces
Supporting stable operations with an
extensive lineup
Fused cast refractory bricks
for glass melting furnace crown
23
AGC Report 2016
New Products
Products for New Markets
Combining diverse technologies, the AGC Group is creating products
with even higher added value for new markets.
For Next-generation Communications Markets
Making all the glass around us into an information interface
infoverre™
Glass integrated digital signage
Glascene™
Transparent glass screen
Transforming Glass into an Informational Device
by Integrating Liquid Crystal Displays
Comprised of an LCD directly attached on building exterior
or interior glass, infoverre™ digital signage creates the effect
of images floating in the air. The AGC Group has enabled
non-reflective, clear images by applying integrated optical
technologies cultivated through its chemicals business.
Opening Up New Possibilities for Projectors
by Enabling Image Projection Onto Transparent Glass
Manufactured using a unique process, Glascene™ is a glass
screen that enables images to be projected onto it. This new
type of screen retains its transparency while images are
projected. The images can be projected from the front or
rear sides of the screen, which can be produced at sizes over
100 inches.
Just ordinary glass when
not in use.
Attached to the windows of the Shin-Marunouchi Building in Tokyo, 55-inch
infoverre™ LCDs show a range of advertisements. This product received a
2015 Digital Signage Award in the Technology category.
Glascene™ displays beautiful images while
retaining its transparency.
For Next-generation Mobility Markets
Making vehicle interiors more comfortable with user-friendly touch panels
Cover Glass for Console Panels
Realizing More Comfortable and Reliable Touch Panel Oper-
ation through Electronic Device Cover Glass Technology
In recent years, the automotive industry has been develop-
ing technologies that integrate the operation of various
vehicle equipment, including stereos, navigation systems
and air conditioners. Having outstanding strength, scratch
resistant and anti-reflective properties, the AGC Group’s
Dragontrail™ cover glass for electronic devices is now used
for the console panels of vehicle equipment.
AGC Report 2016 24
Innovation Management
The AGC Group is Combining a Diverse Range of
Core Technologies to Drive All-New Innovations.
Core Technologies
A New Framework for
Research and Development
As shown in the following diagram, the AGC Group has
accumulated a diverse range of core technologies: glass and
ceramic material technologies respond to various needs in
society, coating and glass integration technologies add
more value to products, and fluorine and chemistry technol-
ogies are used for creating advanced high-performance
products. To underpin such research and development
initiatives, the AGC Group is also working on the develop-
ment and sophistication of its fundamental technologies
such as simulation, analysis, sensing and process design
technologies.
By combining and integrating these technologies and
then drawing from the vast technological possibilities that
result, the AGC Group intends to drive innovations that
bring new value to trades and communities, while also meet-
ing the needs of customers and helping resolve the
challenges they face.
In January 2016, AGC Asahi Glass reorganized its research
and development operations with the aim of developing
more competitive and innovative core technologies and
new products. As part of this reorganization, the new Innova-
tive Technology Research Center was established in the
company’s Technology General Division, and given the
tasks of creating innovative core technologies and applying
advanced fundamental technologies to promote progress in
product development. At the same time, the New Product
R&D Center was set up for the purpose of creating new
products and solving technical issues concerning existing
products. The Production Technology Division was also
created to develop and refine production technologies.
Based on an approach that integrates market and product
development, AGC Asahi Glass is working on R&D in an
agile manner while promoting close cooperation between
five relevant organizations in its Technology General
Division, which now includes a new Planning Division and
Intellectual Property Division, and the R&D divisions of each
respective In-house Company.
The AGC Group’s Core Technology Map
An R&D Framework to Achieve Greater Competitiveness
Creating New Value
Glass Integration
Technologies
•Laminate technology
•Encapsulation technology
Coating Technologies
•Dry coating
•Wet coating
•Coating design
Glass Material
Technologies
•Glass material design
•Glass forming
technology
•Glass production
technology
Fluorine & Chemistry
Technologies
•Fluorine chemistry
•Polymer materials
•Biochemistry
•Electrochemistry
•Nano-materials
•Inorganic materials
Ceramic Material
Technologies
•Ceramic material
design
•Refractory materials
Fundamental Technologies
•Simulation technology •Analysis technology
•Sensing technology •Process design (engineering)
25
AGC Report 2016
Technology General Division
Responsible for fundamental/basic technology
Planning Division
Developed and promotes technological strategy
Innovative Technology
Research Center
Creates innovative
fundamental technologies
New Product R&D Center
Creates new products
Production Technology Division
Develops process-related
and engineering technology
Intellectual Property Division
Formulates and implements
intellectual-property-related strategy
Collaboration
Each In-house Company R&D Division
Responsible for product development technology,
production technology implement
Glass Company
R&D Division
Electronics Company
R&D Division
Applied Glass Materials
General Division
R&D Division
Chemicals Company
R&D Division
AGC Ceramics
R&D Division
The AGC Group’s Approach to Innovation
The AGC Group is Accelerating Innovation
Based on a Global Perspective and
a Medium- to Long-term Outlook
To chart a course for its R&D over the medium and
long terms, the AGC Group draws its own technology
roadmap called “Technology Outlook,” which is
based on projections of the products and technolo-
gies that will be in high demand over the next 10 to 20
years. To develop and commercialize such products
and technologies, the AGC Group also creates a
business roadmap called “Business Outlook” which
consists of survey results on whether they are suitable
for the Group and can sustainably generate profits. As
a result of extensive studies and analysis, smart
community-related markets have been identified as
crucial R&D targets to explore in the future. The AGC
Group is now moving forward with proactive R&D and
business development in related areas.
A key to successful commercialization of new
products and technologies is a close link between the
market and product development. Under an initiative
called Global Technology Networking (GTNET), the
AGC Group gathers and studies leading-edge
technological information and market trends through
expert personnel sent to strategic locations in Japan,
Southeast Asia, Europe and the United States, where
universities and corporate research facilities are
concentrated. This activity helps strengthen the
relationship between marketing and product devel-
opment operations on a global scale, explore the
seeds of new businesses, build on the Group’s
technologies and expand business networks.
Another R&D initiative is open innovation. By
making extensive use of resources from outside
through strategic business alliances as well as mergers
and acquisitions, the AGC Group aims to accelerate
technical innovations and opportunities for new
market creation, and shorten product development
lead times. The Group also participates in national
projects related to smart communities, collaborating
with other companies and research institutions.
R&D Target Setting Process
p
S
e
1
t
S
t
e
p
2
S
t
e
p
3
Identify seeds
for innovative technology
Establish and follow
a technology roadmap
Predict the potential
for commercialization
Establish and follow
a business roadmap
Set key objectives for R&D
with a view to create new value
Analyze social trends
and assess
technical potential
Analyze suitability
as a company business
and assess
business potential
Smart community-related markets
Next-generation Mobility
Heat Management
Next-generation
Communication
Security and Safety
Life Science
New Energy
and New Green
AGC Report 2016 26
CSR Management
By Identifying Material Issues in CSR, the AGC Group Promotes
CSR Management within Corporate Management.
Approach to CSR and
Related Policies
CSR Promotion System
The AGC Group Vision “Look Beyond” (see page 2) is
comprised of “Our Mission,” “Our Shared Values” and “Our
Spirit.” This Vision provides the basis for the Management
Policy AGC plus, through which the Group strives to offer
added value (add a “plus”) to all stakeholders. By following
this approach, the Group strives to both foster trust and
meet the expectations of the community and contributes to
the creation of a sustainable society.
In addition, the AGC Group has established “the AGC
Group Charter of Corporate Behavior,” which outlines the
corporate social responsibility expected of Group compa-
nies, and “the AGC Group Code of Conduct,” which
clarifies the standards of behavior for all employees.
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 heads of each business and
corporate division deliberate over general policies and issues
related to the Group’s CSR activities on a quarterly basis.
The results of deliberations by the CSR Committee are
shared globally across the AGC Group through subcommit-
tees specializing in compliance and risk management, as well
as Environment, Occupational Health, Safety and Quality
(EHSQ) management. The information is then reflected in
measures implemented by the Group’s In-house Companies
and Strategic Business Units (SBUs).
CSR-related Policies
Social
Responsibility
AGC Group
Business
Environment
Charter of
Corporate Behavior
Group Vision
The Group’s corporate
philosophy for all business
and social activities
Management Policy
AGC plus
Code of Conduct
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
•Compliance Committee
•EHSQ Management
•Enterprise Risk Management
AGC Group Charter of Corporate Behavior
The Group Charter sets forth and declares the perspectives that form the basis of
our behavior to ensure that the AGC Group will remain a good corporate citizen.
AGC Group Code of Conduct
The Code of Conduct sets forth standards to be observed by all Group members
from the perspective of “integrity” in Our Shared Values under the AGC Group Vision
“Look Beyond.”
Management Policy AGC plus
The Management Policy sets forth the course of action for all the Group’s business
activities providing social and business aspirations, guidelines and directives. It is revised as
necessary to reflect changes in the business environment and circumstances of the Group.
Each In-house
Company/SBU
CSR Offices in In-house Company/SBU
Group companies world wide
Corporate Divisions
Corporate Planning
Division
General Affairs
Division
Legal Division
Support
and
guidance
Human Resources
Division
Purchase & Logistics
Division
27
AGC Report 2016
The PDCA Cycle and
Material Issues
The CSR PDCA Cycle
The AGC Group’s Stakeholders
In 2011, the AGC Group began to develop the CSR monitor-
ing framework based on ISO 26000 to assess the Group’s
CSR activities from the perspective of stakeholders and
strengthen measures and policies that benefit the communi-
ty. As a specific initiative, it created a matrix that categorizes
four types of CSR issues according to their importance. One
of these categories, “issues for which a framework is to be
developed and a commitment made to society,” is recog-
nized as being important for both the AGC Group and its
stakeholders. Accordingly, the Group has designated this
category as a priority material issue, and is disclosing related
targets and results to stakeholders via its CSR website.
Customers
Shareholders
and investors
Society
Business
partners
Employees
Evaluation/
Requirements,
Expectations
Information
Disclosure
AGC Group
CSR Monitoring
Review of
CSR-related
Issues
Target-setting
for
Material Issues
CSR Activities
Matrix of CSR Issues
The AGC Group’s Material Issues in Relation to
ISO 26000 International Standards
Targets and results for issues covered
in this section of the chart are
disclosed publicly as the AGC Group’s
priority material issues
Issues for which
information is to
continue to be collected
Issues for which
a framework is to
be developed and
a commitment
made to society
Issues for which
additional measures are
deemed unnecessary
Issues for which
a framework is
to be developed
Material issues for the AGC Group
l
s
r
e
d
o
h
e
k
a
t
s
r
o
f
s
e
u
s
s
i
l
a
i
r
e
t
a
M
ISO 26000 Items
Core subjects
Issues
AGC Group’s
material issues
Organizational
Governance
Decision-making processes and
structures
Organizational
governance
Conditions of work and social
protection
Human Rights and
Labor Practices
Health and safety at work
Fair working conditions
Occupational health &
safety
Human development and
training in the workplace
Human resource
development
Prevention of pollution
Pollution prevention
The Environment
Sustainable resource use
Sustainable use of
resources
Climate change mitigation and
adaptation
Response to climate
change
Anti-corruption
Fair Operating
Practices
Fair competition
Anti-corruption
Compliance with
antitrust laws
Promoting social responsibility
in the value chain
Social responsibility in
the supply chain
Consumer Issues
Protecting consumers’ health
and safety
Product safety
WEB
Please visit the AGC Group’s CSR website for more information about its CSR management and activities: http://www.agc.com/english/csr/index.html
AGC Report 2016 28
Corporate Governance
The AGC Group is Raising the Transparency and
Agility of Management Oversight and Execution.
Approach to Corporate Governance
Framework for
Management Oversight
Under the AGC Group Corporate Governance Basic Policy,
AGC Asahi Glass strives to strengthen and improve its
corporate governance with a view to ensuring its sustain-
able growth and raising the AGC Group’s corporate value
over the medium and long term.
The Company is responsible for managing the AGC
Group as a whole, beyond the conventional framework of a
parent company and subsidiaries. On that basis, the follow-
ing is the Company’s basic approach to its corporate gover-
nance system:
• The management oversight function and management execution
function shall be clearly separated
• In the execution of management, corporate functions and the
business execution function shall be clearly separated
Structure and Role of the Board of Directors
The Board of Directors of AGC Asahi Glass consists of seven
directors, each appointed to a one-year term, and includes
three outside directors, including one female director1. The
Board is responsible for the approval of the AGC Group’s
basic policies and monitoring its management.
The Company first employed outside directors in 2002
in an effort to enhance the management oversight function.
Outside directors are appointed in compliance with the
requirements under the Companies Act of Japan as well as
the Company’s own selection criteria designed to ensure
director independence.
Outside directors monitor issues concerning the
Group’s business management and offer advice to the
Board of Directors from an independent and objective
standpoint, based on their extensive experience in global
Overview of Corporate Governance Structure (as of March 30, 2016)
t
h
g
i
s
r
e
v
O
t
n
e
m
e
g
a
n
a
M
n
o
i
t
u
c
e
x
E
s
s
e
n
i
s
u
B
n
o
i
t
a
r
e
p
o
o
C
l
a
u
t
u
M
Corporate Auditors: 4 Auditors
(Including 3 Outside
Corporate Auditors)
Accounting Auditor
General Meeting of Shareholders
Board of Directors: 7 Directors
(Including 3 Outside Directors)
Chairman
President & CEO
Senior Executive Officer CTO
Senior Executive Officer CFO
Nominating Committee:
5 Directors
(Including 3 Outside Directors)
Compensation Committee:
5 Directors
(Including 3 Outside Directors)
Executive Officers
Management Committee
CSR Committee
Compliance Committee
Fair Trade Committee
Internal Audit Division
Group
Corporate
Information Management Council
Security Export Control Headquarters
In-house Companies/Strategic Business Unit (SBU)2
e
t
a
r
o
p
r
o
C
p
u
o
r
G
n
o
i
t
c
n
u
F
s
n
o
i
t
a
r
e
p
O
n
o
i
t
c
n
u
F
s
s
e
n
i
s
u
B
2 An In-house Company is defined as a business unit with net sales exceeding 200 billion yen which conducts its business globally. At present, there are three In-house Companies: the Glass Company,
the Electronics Company and the Chemicals Company. Business units smaller than this are defined as Strategic Business Units (SBUs).
29
AGC Report 2016
corporate management and knowledge of corporate
governance related issues. In principle, meetings of the
Board of Directors are chaired by an outside director.
1 As of March 30, 2016
Meetings of the Board of Directors in Fiscal 2015
Meetings held
Attendance rate of members of the Board of Directors
13
95%
Assessment of the Effectiveness of the Board of Directors
The effectiveness of the Board of Directors of AGC Asahi
Glass is subject to assessments and evaluations. As a result
of the assessments, it was confirmed that the Company’s
Board of Directors is effectively fulfilling its responsibilities
of overseeing management execution and approving basic
action plans for the AGC Group.
Structure and Roles of the Nominating Committee and
Compensation Committee
AGC Asahi Glass established its Nominating and Compensation
Committees in 2003 as voluntary advisory committees of the
Board of Directors.
Committee Activities in Fiscal 2015
Number of
members
Duties
Nominating
Committee
5 Directors
(of which 3
are outside
directors)
Deliberate on candidates for
director and executive officer
positions, and make
recommendations to the
Board of Directors
Compensation
Committee
5 Directors
(of which 3
are outside
directors)
Deliberate on the compensation
system for directors and
executive officers, directors’
compensation limits and
bonuses to be reported to the
general shareholders meeting,
and the amount of compensation
for executive officer
Number of
meetings
held
3 times
8 times
Structure and Role of the Board of Corporate Auditors
The Board of Corporate Auditors audits the performance of
directors by attending important meetings, including
meeting of the Board of Directors and the Management
Committee, and by holding regular meetings with repre-
sentative directors. The corporate auditors also enhance
the effectiveness of auditing by exchanging views and
checking information concerning audit results and other
matters in cooperation with accounting auditor and the
Internal Audit Division. As of March 30, 2016, AGC Asahi
Glass employed four corporate auditors in total, of which
three were outside corporate auditors.
Meetings of the Board of Corporate Auditors in Fiscal 2015
Meetings held
13
Attendance rate of members of the Board of Corporate Auditors
100%
Ensuring the Independence of Outside Directors and
Outside Corporate Auditors
AGC Asahi Glass has set standards to ensure the indepen-
dence of outside directors and outside corporate auditors.
To help enable outside directors to effectively oversee
operations, the Corporate Planning Division, 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 import-
ant meetings, and helping them coordinate meetings with
representative directors and accounting auditor.
Framework for
Management Execution
At AGC Asahi Glass, the management execution function is
the responsibility of executive officers below the president
& CEO. As an advisory committee to the president & CEO,
the Company 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 manage-
ment system is adopted with regard to business execution.
Much of the responsibility and authority for business execu-
tion has been delegated to the In-house Companies and
Strategic Business Units.
AGC Report 2016 30
Corporate Governance
Compensation System
Basic Philosophy on Compensation System for Directors
and Corporate Auditors
In its Compensation Principles, AGC Asahi Glass sets out its
basic stances and philosophies on overall compensation for
officers as follows.
• 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.
• The compensation system shall be one that promotes continued
improvement of corporate value, and in this way allows
shareholders and management to share gains
• The compensation system shall be one that gives motivations to
achieve performance goals relating to management strategies
for the AGC Group’s continuous development.
The amount of the Bonuses, which is aimed at motivat-
ing recipients to achieve their single-fiscal-year business
results goals, varies depending on consolidated business
results for a single fiscal year. The stock compensation-type
stock options are intended to allow recipients to share
benefits and risks associated 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 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 compen-
sation determination process.
• The decision-making process of determining compensation
Compensation to Directors and Corporate Auditors1 in Fiscal 2015
shall be objective and highly transparent
Composition of Compensation for Directors and
Corporate Auditors
Under the company’s compensation system, directors who
also serve as executive officers receive a fixed monthly salary,
performance-linked bonuses, and stock compensation-type
stock options, while directors who do not serve as executive
officers receive a fixed monthly salary and stock compen-
sation-type stock options. Meanwhile, outside directors
and corporate auditors only receive a monthly salary.
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
Number of
recipients
Total payment
(millions of yen)
All directors
Outside directors only
All corporate auditors
Outside corporate auditors only
9
3
6
5
439
46
93
57
1 Figures include remuneration to a total of four directors and corporate auditors (including
outside corporate auditors) who either retired or resigned in March 2015.
Internal Control
In response to the enactment of the Companies Act of
Japan, AGC Asahi Glass established a basic policy for
internal control in May 2006, with the aim of confirming that
its business execution systems, including the compliance
system, were functioning appropriately.
Furthermore, the Company adopted an internal control
reporting system in compliance with Japan’s Financial
Instruments and Exchange Act, and on that basis, created
the AGC Group Internal Control over Financial Reporting
Implementation Regulations, and is maintaining and imple-
menting the system to ensure sound financial reporting.
31
AGC Report 2016
Board of Directors, Corporate Auditors and Executive Officers
Board of Directors
Kazuhiko Ishimura
Representative Director & Chairman
Takuya Shimamura
Representative Director and President & CEO
Yoshinori Hirai
Director
Shinji Miyaji
Director
Masahiro Sakane
Director (Outside)
Hiroshi Kimura
Director (Outside)
Masako Egawa
Director (Outside)
Appointed in March 2011
Member of the Nominating Committee and
Compensation Committee
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.
Outside Director of Kajima Corporation
Appointed in March 2013
Member of the Nominating Committee and
Compensation Committee
Special Advisor to Japan Tobacco Inc.
Outside Director of Nomura Holdings, Inc.
Appointed in March 2014
Member of the Nominating Committee and
Compensation Committee
Professor, Graduate School of Commerce and
Management, Hitotsubashi University
Outside Director of Tokio Marine Holdings, Inc.
Outside Director of Mitsui Fudosan Co., Ltd.
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
Yoshinori Hirai
CTO
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 Division
Shinji Miyaji
CFO
GM of Corporate Planning
Division
GM of Export
Compliance Control Directorate
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 General Affairs Division
Akinobu Shimao
President of AGC Ceramics Co.,
Ltd.
Tomoya Takigawa
GM of Innovative Technology
Research Center, Technology
General Division
Takashi Shimbo
Chief Representative of AGC
Group for China
Kimikazu Ichikawa
Chief Representative of AGC
Group for Southeast Asia
Kazuaki Koga
GM of Essential Chemicals
General Div., Chemicals Company
Kenzo Moriyama
GM of Strategy & Planning Office,
Corporate Planning Division
Kazuyoshi Watanabe
GM of Display Glass General Div.,
Electronics Company
Takashizu Minato
GM of Performance Chemicals
General Div., Chemicals Company
Kihachiro Okamoto
Deputy GM of Automotive
General Division, Glass Company
Shigekuni Inoue
GM of Production Technology
Div., Technology General Division
Hiroyuki Watanabe
GM of New Product R&D 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
Masahiro Takeda
Deputy GM of Building &
Industrial General Div., Glass
Company; GM of Japan/Asia
Pacific Div., Building & Industrial
General Div., Glass Company
Takashi Misu
GM of Human Resources Division
Tatsuo Sugiyama
GM of Japan/Asia Pacific Div.,
Automotive General Div., Glass
Company
Takahisa Sugiyama
GM of Electronic Materials
General Div., Electronics Company
Note GM: General Manager
Corporate
Auditors
Shukichi Umemoto
Yasushi Marumori
(Outside)
Toru Hara
(Outside)
Hiroshi Kawamura
(Outside)
As of 30 March, 2016
AGC Report 2016 32
History
With Over 100 Years of History, the AGC Group Aims to Continue
Contributing to Society for Years to Come.
From
1900
From
1920
Time of Establishment
From
1940
Expanding Business Globally
1907
Asahi Glass Company established in Amagasaki,
Hyogo Prefecture, by Toshiya Iwasaki (pictured).
1925
Shoko Glass Co., Ltd. established in China as
Asahi Glass’ first business outside Japan.
1952
Agreement concluded to export caustic soda
electrolysis equipment to Indonesia.
1955
Deming Prize received for quickly adopting
quality management.
1914
The first export of flat glass to England.
1917
Headquarters moved to Tokyo.
1933
The Asahi Foundation for Chemical Industry
Promotion (now the Asahi Glass Foundation)
established to commemorate our 25th anniversary.
1956
Glass manufacturing subsidiary established in India,
demonstrating progress in expanding internation-
ally ahead of other Japanese companies.
1937
Stocks listed on the Tokyo Stock Exchange.
1957
Asahi Glass Scholarship Foundation established
to commemorate our 50th anniversary.
Evolution of Products and Technologies
1909
Mass production of flat
glass using a Belgian
method of producing
glass with hand-blown
cylinders begins
for
the first time in Japan.
1916
In-house production
of long-lasting refrac-
tory bricks for melting
furnaces begins.
1917
In-house production of soda ash, a key raw material
for glass, begins.
1914-1918
First World War
33
AGC Report 2016
1928
Production of flat glass by the Fourcault process
begins.
1954
Production of double-glazing units PairGlass™
begins.
1933
Caustic soda production using the ammonia
method begins.
1955
Manufacture of glass bulbs for television picture
tubes begins.
1956
Automotive glass business launched on a full
scale to respond to rapidly growing demand.
1938
Production of tempered glass and laminated
glass begins.
1939
Production of refractory bricks begins at the Iho Plant.
1923
Great Kanto Earthquake in Japan
1929
Beginning of the Great Depression in the United
States
1939-1945
Second World War
1951
Treaty of San Francisco concluded
1953
Television broadcasting begins in Japan
1954-1957
Economic boom in Japan
From
1960
From
1980
From
2000
Period of Growth and Expansion
Toward Global Operations
1964
Entry into Thailand’s flat glass market.
1981
Glaverbel S.A. in Belgium acquired. Full-scale
entry in Europe’s flat glass market.
2002
Creation of AGC Group Vision,
In-house Company system introduced.
.
1972
Glass production operations commence in
Indonesia.
1985
Full-scale entry of the automotive glass business
in the United States.
1986
Full-scale entry of the chlor-alkali business in
Indonesia.
1997
Entry into Russia’s glass market.
2007
Group brand unified as “AGC”
to mark its 100th anniversary.
2013
The Brazil Plant, one of
the most environmen-
tally friendly factories
in South America starts
operation. Entry into
Brazil’s flat glass market.
2013
Regional headquarters established in Singapore
with the aim of business expansion in Southeast
Asia.
2015
“AGC plus” management policy implemented.
1961
Production of propylene oxide and propylene
glycol begins.
1980
AZEC System, a new ion-exchange membrane
electrolyzer, developed.
2005
Sales of automotive door glass that blocks infra-
red rays launched.
1966
Production of float glass begins.
1972
Product development of
AsahiGuard™ water and oil
repellants and Aflon™ COP
fluorinated resins begins.
1975
Development of the Flemion™
fluoropolymer ion-exchange
membrane electrolysis method
for manufacturing caustic soda.
1982
Production of fluoropoly-
mer resin for coatings
(LUMIFLON™) begins.
1990
CYTOP™ transparent
amorphous fluoropoly-
mer developed.
1995
Production of glass substrates for TFT-LCDs begins.
2008
High-performance Fluon® ETFE FILM used for
various sports venues at the global sports event
in Beijing.
2011
Worldwide sales of Dragontrail™ glass for smart-
phones and tablet computers begin.
2011
UV Verre Premium Cool on™ tempered glass
for automotive door windows sales begin.
2015
Supply of HFO-1234yf, a next-generation auto-
mobile refrigerant with a low environmental bur-
den, begins.
1960
Color television broadcasting begins in Japan
1983
Birth of the Internet
2003
Terrestrial digital broadcasting begins in Japan
1964
Tokaido shinkansen bullet train service commenc-
es in Japan and the Olympic Games held in Tokyo
1970
Expo ’70 world’s fair held in Osaka
1973 and 1979
First and second oil crises
1985
Plaza Accord concluded
1993
European Union established
1997
Kyoto Protocol adopted
2008
Global financial crisis begins
2011
The Great East Japan Earthquake and tsunami
disaster in Japan’s Tohoku region
2014
FIFA World Cup held in Brazil
AGC Report 2016 34
Main Communication Tools Used to Reach Each of Our Stakeholders
For customers
(including general consumers)
AGC Report 2016
(This report)
For all stakeholders
For shareholders and investors
AGC Asahi Glass Website
www.agc-group.com/
Provides information about the
AGC Group more widely, timely
and in more detail
Financial Review
Reports the AGC Group’s business
outline and financial information
including consolidated financial
statements (PDF file only)
A Broad Overview of the AGC Group’s
Corporate Vision, Business Strategies
and Business Activities
For CSR-related experts1 and stakeholders with an interest in CSR
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 G42
CSR Information Supplement
Reports on the AGC Group’s
non-financial data and its various
CSR policies and organizations for
promoting CSR-related activities
(PDF file only)
1 ESG research agencies, etc. 2 The 4th edition of the GRI Sustainability Reporting Guidelines
Scope
•Reporting Period
Fiscal 2015 (Jan.–Dec. 2015)
Some information includes content from both fiscal 2014 and 2016
•Organizations Covered in the Report
Asahi Glass and its 204 consolidated subsidiaries
(Group companies in and outside Japan)
•Primary Notation and Report Targets Used in the Report
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.
AGC Asahi Glass/the Company
Asahi Glass Co. Ltd. (on an unconsolidated basis)
Related Information
Date of Publication
WEB
Articles with this mark have related information on the AGC Asahi
Glass website (www.agc.com/english/).
April 2016 (Last date of publication: May 2015)
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/english/
1-5-1, Marunouchi, Chiyoda-ku, Tokyo, 100-8405, JAPAN
Corporate Communications & Investor Relations Office,
Corporate Planning Division
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.
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