Main Communication Tools Used to Reach Each of Our Stakeholders
For customers
(including general consumers)
AGC Report 2017
(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)
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
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)
A Broad Overview of the AGC Group’s
Corporate Vision, Business Strategies
and Business Activities
1 ESG research agencies, etc.
Scope
•Reporting Period
Fiscal 2016 (Jan.–Dec. 2016)
Some information includes content from both fiscal 2015 and 2017
•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 WEB Articles with this mark have related information on the AGC Asahi Glass website (www.agc.com/english/).
Date of Publication
April 2017 (Last date of publication: April 2016)
Regarding Future Assumption, Forecasts and Plans
vary with fluctuations in the business environment.
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
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AGC Asahi Glass
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.
All rights reserved. Unauthorized reproduction of this report is a violation of applicable laws.
AGC Report 2017
Our Mission
AGC Group Vision
AGC, an Everyday Essential Part of Our World
AGC’s unique materials and solutions make people’s lives better
around the world every day
is the AGC Group’s corporate philosophy on which all the activities
Structure and elements of
®
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.
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.
• We, as good global citizens, will
contribute to the creation of a sustain-
able society in harmony with nature.
• We will build open and fair relationships
with all of our stakeholders based on
the highest ethical standards.
• We will strive to ensure and further
• We will strictly comply with applicable
improve occupational health and safety
laws and regulations.
in our working environment.
• We will fulfill our responsibilities in
relation to all the products and
services we provide 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 1907.
1
AGC Report 2017
AGC Report 2017 2
Our Mission
AGC Group Vision
AGC, an Everyday Essential Part of Our World
AGC’s unique materials and solutions make people’s lives better
around the world every day
®
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.
1
AGC Report 2017
AGC Report 2017 2
Message from the President and CEO
The AGC Group’s history began more than a century ago,
when we took on the challenge of manufacturing the first
flat glass in Japan with a view to contributing 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, electronics, chemicals and ceramics,
while providing solutions to a wide range of industries,
including the building, automotive and electronics sectors.
After the launch of its business operations in India in the
1950s, the Group has expanded its business throughout
Asia, Europe, North America, South America and the
Middle East, and its employees around the world have been
striving for the development of the local economy and
society in each region. The fundamental principle of our
business is to contribute to society through our unique
materials and solutions developed using the Group’s exper-
tise and technologies.
In recent years, the business environment surrounding the
Group has been changing drastically. Amidst such a volatile
environment, the AGC Group’s
management
policy serves as a reminder of AGC’s fundamental principles
that the Group’s officers and employees should follow as
they provide added value to all stakeholders. In addition,
we also formulated our long-term vision called Vision 2025
and a long-term management strategy to achieve it under
AGC plus. We aim to be a highly profitable, leading global
material provider as the Group’s Core Businesses serve as a
solid revenue base and its Strategic Businesses become a
growth driver to generate further profits.
The AGC Group will continue innovating and offering new
solutions that are indispensable to society. 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 expec-
tations of our stakeholders around the world.
The AGC Group’s Management Policy
The AGC Group adds a “plus” by:
•Providing safety, security and comfort to society;
•Creating new value and functions for customers and
business partners and building trust with them;
•Enhancing job satisfaction among employees; and
•Increasing the Groups’ corporate value for investors.
Takuya Shimamura
Representative Director, President and Chief Executive Officer
Through Diverse Technologies, the AGC Group Offers
Solutions that Contribute to People’s Lives Worldwide.
Takuya Shimamura
Representative Director,
President and Chief Executive Officer
3
AGC Report 2017
AGC Report 2017 4
Message from the President and CEO
The AGC Group’s history began more than a century ago,
materials and solutions developed using the Group’s exper-
when we took on the challenge of manufacturing the first
tise and technologies.
flat glass in Japan with a view to contributing to people’s
lives and the country’s industrial development. Since that
In recent years, the business environment surrounding the
time, the Group has built up expertise and technologies in
Group has been changing drastically. Amidst such a volatile
the fields of glass, electronics, chemicals and ceramics,
environment, the AGC Group’s
management
while providing solutions to a wide range of industries,
policy serves as a reminder of AGC’s fundamental principles
including the building, automotive and electronics sectors.
that the Group’s officers and employees should follow as
After the launch of its business operations in India in the
they provide added value to all stakeholders. In addition,
1950s, the Group has expanded its business throughout
we also formulated our long-term vision called Vision 2025
Asia, Europe, North America, South America and the
and a long-term management strategy to achieve it under
Middle East, and its employees around the world have been
AGC plus. We aim to be a highly profitable, leading global
striving for the development of the local economy and
material provider as the Group’s Core Businesses serve as a
society in each region. The fundamental principle of our
solid revenue base and its Strategic Businesses become a
business is to contribute to society through our unique
growth driver to generate further profits.
The AGC Group will continue innovating and offering new
solutions that are indispensable to society. 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 expec-
tations of our stakeholders around the world.
The AGC Group’s Management Policy
The AGC Group adds a “plus” by:
•Providing safety, security and comfort to society;
•Creating new value and functions for customers and
business partners and building trust with them;
•Enhancing job satisfaction among employees; and
•Increasing the Groups’ corporate value for investors.
Takuya Shimamura
Representative Director, President and Chief Executive Officer
Through Diverse Technologies, the AGC Group Offers
Solutions that Contribute to People’s Lives Worldwide.
Takuya Shimamura
Representative Director,
President and Chief Executive Officer
3
AGC Report 2017
AGC Report 2017 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 catego-
ries 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 profit-
able, leading global material and solution provider.
Basic policy to achieve our goals
under “Vision 2025”
1. Always look from market perspective, respond to
customers’ needs, and continue building trust with them.
2. Achieve sustainable growth in both Core and Strategic
Businesses by boldly pursuing strategic M&A opportuni-
ties along with the organic growth approach.
3. Take advantage of high growth in Asia by leveraging
regional operations and strategic actions in the
geographical area covering from Southeast Asia through
the Middle East.
4. Concentrate the Group’s management resources into the
business fields that have high earnings/growth potential
and achieve the business structure with improved asset
efficiency.
“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
Growth Strategies in Asia
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
Middle East
(West Asia)
The AGC Group’s business foundations
in glass and chemicals
Southeast Asia
Main business locations
extend across Asia from Southeast Asia
to the Middle East (West Asia).
Glass
Chemicals
5
AGC Report 2017
AGC Report 2017 6
Core Strategy 1 Core businesses
Practicing Comprehensive Portfolio Management
The AGC Group now designates its architectural glass,
investments, including mergers and acquisitions.
automotive glass, chemicals and display glass businesses as
The AGC Group has established a strong presence in
Core Businesses. Through these businesses, the Group will
Thailand and Indonesia through its glass and chemicals
establish long-term, stable sources of earnings while focus-
businesses. By taking advantage of growth in Asia in partic-
ing on the effective allocation of resources based on its
ular, this has created opportunity for business expansion
business portfolio. It will also carry out growth-oriented
from Southeast Asia to the Middle East (West Asia).
Basic Strategies for Enhancing Core Businesses
Business
Basic strategy
Architectural glass
Automotive glass
(existing)
Display glass
Essential
chemicals
Performance
chemicals
Ceramics
•Select and concentrate on high growth countries & countries that the Group has a competitive advantage
•Innovative business models to enhance the asset efficiency
•Respond to needs for more advanced functions and performance amid the expansion of the Eco-friendly
vehicles and automated driving systems
•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
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,
Basic policy to achieve our goals
under “Vision 2025”
chemicals, display glass and ceramics businesses as Core
1. Always look from market perspective, respond to
Businesses for ensuring stable sources of earnings over the
customers’ needs, and continue building trust with them.
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 catego-
ries 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 profit-
able, leading global material and solution provider.
2. Achieve sustainable growth in both Core and Strategic
Businesses by boldly pursuing strategic M&A opportuni-
ties along with the organic growth approach.
3. Take advantage of high growth in Asia by leveraging
regional operations and strategic actions in the
geographical area covering from Southeast Asia through
the Middle East.
4. Concentrate the Group’s management resources into the
business fields that have high earnings/growth potential
and achieve the business structure with improved asset
efficiency.
“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
Architectural
glass
Automotive
glass
(existing)
Essential
chemicals
Performance
chemicals
Ceramics
Display glass
Mobility
Electronics
Life science
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
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 focus-
ing 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)
•Respond to needs for more advanced functions and performance amid the expansion of the Eco-friendly
vehicles and automated driving systems
Display glass
•Optimize the allocation of production bases to respond to the demand shift in the LCD glass market
•Cultivate markets for new display applications
Essential
chemicals
Performance
chemicals
Ceramics
•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
Establishing long-term, stable sources of
Establishing highly profitable businesses through
earnings through the portfolio management
expansion of high value-added businesses
Growth Strategies in Asia
5
AGC Report 2017
AGC Report 2017 6
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
Long-term Strategy
Medium-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 smartphones 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 densi-
ty of data storage. 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
also acquired a biopharmaceutical contract manufacturer
2016
•Evolution of
transportation
infrastructure
•Everything can be
connected
•Anyone can be
connected anytime
•Aging society
•Increase of global
population
•Greater safety,
security, comfort
Mobility
Electronics
•Advancement in
drive assist system,
and innovation in
automatic driving
and transportation
infrastructure
•Connecting moving
vehicles and society,
and safety/security/
comfort
•Everything connects
with each other and
safety/security/
comfort
•Advancement of data
entry devices
(cameras, sensors)
•Higher-speed
communications,
increased density of
data storage
Using spaces as displays
Next-generation
communication antennas
Supply parts and materials
for eco-friendly vehicles
Finer, more advanced
semiconductors
Sales promotion of
blue filters for CMOS /
CCD for cameras
Sales promotion of consumer
materials used for semiconductor
manufacturing processes
Life
science
•Longevity and
World’s population
increase
•Pursuing safety and
security
Working on synthetic pharmaceutical &
agrochemical business with world’s major
pharmaceutical/agrochemical companies
Contract Development &
Manufacturing Organization
(CDMO) business
Acquired overseas bases and
mammalian CDMO through M&As
in biopharmaceutical business
The AGC Group is Establishing the Basis for Long-term Growth
with the Medium-term Management Plan, AGC plus-2017.
By effectively allocating management resources and
Major Industry Investments in Recent Years
Glass
Electronics
Chemicals
carrying out strategies 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.
In 2016, the Group increased production capacity
and acquired local companies in Southeast Asia, where
demand for polyvinyl chloride (PVC), architectural coating
glass and other products is growing alongside economic
development. In addition, the Group started operation of
an architectural coating glass plant in Saudi Arabia and
based in Europe.
In 2017, the final year of the medium-term management
plan, the Group will aggressively implement strategic
initiatives and accelerate its re-growth toward the realization
of Vision 2025. In its Core Businesses, the Group intends
to establish a long-term stable sources of earnings through
the expansion of high-performance, high value-added
products. In its Strategic Businesses, the Group will aim
for further growth by placing a greater focus on developing
products for car-mounted displays and next-generation
semiconductor manufacturing process components, in
addition to global development of the biopharmaceutical
and manufacturing contract business.
2015
Acquired “NordGlass”, a manufacturer of
automobile replacement glass (Poland)
Started operation of a new automotive
glass plant (Mexico)
Increased Low-E glass production capacity
by 50% (Thailand)
Started operation of a coating glass
plant (Saudi Arabia)
Doubled the PVC production capacity
of PVC (Indonesia)
Increased PVC production capacity
by 50% (Vietnam)
Acquired “Biomeva,” a contract manufacturer
of biopharmaceuticals (Germany)
Relocated LCD float furnace from
Japan (China)
2017
Acquired “Vinythai,” a manufacturer / sales
company of chemicals products (Thailand)
Acquired CMC Biologics, a contract
manufacturer of biopharmaceuticals
(Denmark, USA)
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 Vision 2025
Net sales
(Billion yen)
1,326.3
1,282.6
1,350.0
Operating
profit
(Billion yen)
ROE (%)
71.2
3.9
96.3
4.3
2015
2016
2017 (Forecast)
(Year)
105.0
6.0
Management targets
for 2017
Net sales
¥1.6 trillion
Operating profit
More than
¥100 billion
ROE
5% or above
D/E
0.5 or less
7
AGC Report 2017
AGC Report 2017 8
Long-term Strategy
Long-term Strategy
Medium-term Strategy
Medium-term Strategy
The AGC Group is Establishing the Basis for Long-term Growth
The AGC Group is Establishing the Basis for Long-term Growth
with the Medium-term Management Plan, AGC plus-2017.
with the Medium-term Management Plan, AGC plus-2017.
Core Strategy 2 Strategic businesses
Core Strategy 2 Strategic businesses
Expanding High Value-added Businesses
Expanding High Value-added Businesses
Through its Strategic Businesses, the AGC Group is offering
Through its Strategic Businesses, the AGC Group is offering
signage-related products and technologies based on the
signage-related products and technologies based on the
solutions with increased added value, targeting markets
solutions with increased added value, targeting markets
vision of an Internet of Things (IoT) society, in which all types
vision of an Internet of Things (IoT) society, in which all types
covering the three categories of mobility, electronics and the
covering the three categories of mobility, electronics and the
of products are interconnected via the Internet. Products in
of products are interconnected via the Internet. Products in
life science. The Group’s mobility business provides solutions
life science. The Group’s mobility business provides solutions
this business help further diversify input/output devices, as
this business help further diversify input/output devices, as
that help integrate information and communication technol-
that help integrate information and communication technol-
well as increase the speed of communications and the densi-
well as increase the speed of communications and the densi-
ogy (ICT) in automobiles and construct innovative infrastruc-
ogy (ICT) in automobiles and construct innovative infrastruc-
ty of data storage. Finally, the life science business provides
ty of data storage. Finally, the life science business provides
tures and new ecosystems for transportation. The electron-
tures and new ecosystems for transportation. The electron-
products that facilitate advanced medical care and solutions
products that facilitate advanced medical care and solutions
ics business supplies optical materials for smartphones and
ics business supplies optical materials for smartphones and
for global food shortages.
for global food shortages.
The AGC Group’s Solutions for Targeted Markets
The AGC Group’s Solutions for Targeted Markets
Changes in the
Changes in the
social environment
social environment
Targeted
Targeted
markets
markets
Changes in the
Changes in the
market trends
market trends
The AGC Group’s solutions
The AGC Group’s solutions
•Advancement in
•Advancement in
drive assist system,
drive assist system,
and innovation in
and innovation in
automatic driving
automatic driving
and transportation
and transportation
infrastructure
infrastructure
•Connecting moving
•Connecting moving
vehicles and society,
vehicles and society,
and safety/security/
and safety/security/
comfort
comfort
•Everything connects
•Everything connects
with each other and
with each other and
safety/security/
safety/security/
comfort
comfort
•Advancement of data
•Advancement of data
(cameras, sensors)
(cameras, sensors)
•Higher-speed
•Higher-speed
communications,
communications,
increased density of
increased density of
data storage
data storage
Mobility
Mobility
Using spaces as displays
Using spaces as displays
Next-generation
Next-generation
communication antennas
communication antennas
Supply parts and materials
Supply parts and materials
for eco-friendly vehicles
for eco-friendly vehicles
Electronics
Electronics
entry devices
entry devices
Finer, more advanced
Finer, more advanced
semiconductors
semiconductors
Sales promotion of
Sales promotion of
Sales promotion of consumer
Sales promotion of consumer
blue filters for CMOS /
blue filters for CMOS /
materials used for semiconductor
materials used for semiconductor
CCD for cameras
CCD for cameras
manufacturing processes
manufacturing processes
•Evolution of
•Evolution of
transportation
transportation
infrastructure
infrastructure
•Everything can be
•Everything can be
connected
connected
•Anyone can be
•Anyone can be
connected anytime
connected anytime
•Aging society
•Aging society
•Increase of global
•Increase of global
population
population
•Greater safety,
•Greater safety,
security, comfort
security, comfort
By effectively allocating management resources and
carrying out strategies 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.
By effectively allocating management resources and
carrying out strategies 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.
In 2016, the Group increased production capacity
In 2016, the Group increased production capacity
and acquired local companies in Southeast Asia, where
and acquired local companies in Southeast Asia, where
demand for polyvinyl chloride (PVC), architectural coating
demand for polyvinyl chloride (PVC), architectural coating
glass and other products is growing alongside economic
glass and other products is growing alongside economic
development. In addition, the Group started operation of
development. In addition, the Group started operation of
an architectural coating glass plant in Saudi Arabia and
an architectural coating glass plant in Saudi Arabia and
also acquired a biopharmaceutical contract manufacturer
also acquired a biopharmaceutical contract manufacturer
based in Europe.
based in Europe.
In 2017, the final year of the medium-term management
In 2017, the final year of the medium-term management
plan, the Group will aggressively implement strategic
plan, the Group will aggressively implement strategic
initiatives and accelerate its re-growth toward the realization
initiatives and accelerate its re-growth toward the realization
of Vision 2025. In its Core Businesses, the Group intends
of Vision 2025. In its Core Businesses, the Group intends
to establish a long-term stable sources of earnings through
to establish a long-term stable sources of earnings through
the expansion of high-performance, high value-added
the expansion of high-performance, high value-added
products. In its Strategic Businesses, the Group will aim
products. In its Strategic Businesses, the Group will aim
for further growth by placing a greater focus on developing
for further growth by placing a greater focus on developing
products for car-mounted displays and next-generation
products for car-mounted displays and next-generation
semiconductor manufacturing process components, in
semiconductor manufacturing process components, in
addition to global development of the biopharmaceutical
addition to global development of the biopharmaceutical
and manufacturing contract business.
and manufacturing contract business.
Major Industry Investments in Recent Years
Electronics
Major Industry Investments in Recent Years
Electronics
Glass
Glass
Chemicals
Chemicals
2015
2015
Acquired “NordGlass”, a manufacturer of
Acquired “NordGlass”, a manufacturer of
automobile replacement glass (Poland)
automobile replacement glass (Poland)
Started operation of a new automotive
glass plant (Mexico)
Started operation of a new automotive
glass plant (Mexico)
2016
2016
Increased Low-E glass production capacity
by 50% (Thailand)
Increased Low-E glass production capacity
by 50% (Thailand)
Started operation of a coating glass
plant (Saudi Arabia)
Started operation of a coating glass
plant (Saudi Arabia)
Doubled the PVC production capacity
of PVC (Indonesia)
Doubled the PVC production capacity
of PVC (Indonesia)
Increased PVC production capacity
by 50% (Vietnam)
Increased PVC production capacity
by 50% (Vietnam)
Acquired “Biomeva,” a contract manufacturer
of biopharmaceuticals (Germany)
Acquired “Biomeva,” a contract manufacturer
of biopharmaceuticals (Germany)
Relocated LCD float furnace from
Japan (China)
Relocated LCD float furnace from
Japan (China)
2017
2017
Acquired “Vinythai,” a manufacturer / sales
Acquired “Vinythai,” a manufacturer / sales
company of chemicals products (Thailand)
company of chemicals products (Thailand)
Acquired CMC Biologics, a contract
manufacturer of biopharmaceuticals
(Denmark, USA)
Acquired CMC Biologics, a contract
manufacturer of biopharmaceuticals
(Denmark, USA)
Progress Under the Medium-term Management Plan, AGC plus-2017
Progress Under the Medium-term Management Plan, AGC plus-2017
2015
2015
2016
2016
2017
2017
2025
2025
Medium-term management plan, AGC plus-2017
Medium-term management plan, AGC plus-2017
Long-term management strategies
Long-term management strategies
for realization of Vision 2025
for realization of Vision 2025
Life
Life
science
science
•Longevity and
•Longevity and
World’s population
World’s population
increase
increase
•Pursuing safety and
•Pursuing safety and
security
security
Working on synthetic pharmaceutical &
Working on synthetic pharmaceutical &
agrochemical business with world’s major
agrochemical business with world’s major
pharmaceutical/agrochemical companies
pharmaceutical/agrochemical companies
Operating
Operating
profit
profit
(Billion yen)
(Billion yen)
ROE (%)
ROE (%)
71.2
71.2
3.9
3.9
96.3
96.3
4.3
4.3
105.0
105.0
6.0
6.0
Net sales
Net sales
(Billion yen)
(Billion yen)
1,326.3
1,326.3
1,282.6
1,282.6
1,350.0
1,350.0
Management targets
for 2017
Management targets
for 2017
Net sales
Net sales
¥1.6 trillion
¥1.6 trillion
Operating profit
Operating profit
More than
More than
¥100 billion
¥100 billion
ROE
ROE
5% or above
5% or above
D/E
D/E
0.5 or less
0.5 or less
7
7
AGC Report 2017
AGC Report 2017
AGC Report 2017 8
AGC Report 2017 8
Contract Development &
Contract Development &
Acquired overseas bases and
Acquired overseas bases and
Manufacturing Organization
Manufacturing Organization
mammalian CDMO through M&As
mammalian CDMO through M&As
(CDMO) business
(CDMO) business
in biopharmaceutical business
in biopharmaceutical business
2015
2015
2016
2016
2017 (Forecast)
2017 (Forecast)
(Year)
(Year)
187mm
187mm
Overview of the AGC Group
The AGC Group Creates New Value in the Fields of Glass,
Electronics, Chemicals and Ceramics.
Corporate Data
(As of the end of December 2016)
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
Incorporated
June 1, 1950
Capital
Employees
50,963 (consolidated),
6,024 (non-consolidated)
1-5-1, Marunouchi, Chiyoda-ku,
90,873 million yen
Consolidated Group Companies
Tokyo 100-8405 JAPAN
204 (165 overseas)
Business Segment (As of the end of December 2016)
Sales Ratio1
Sales Trends2 (Billion yen)
Main Businesses and Fields/Main Products
GLASS
ELECTRONICS
The AGC Group’s business extends into
four fields: glass, electronics, chemicals
and ceramics. Through world-leading
technologies and expertise the Group has
developed over more than a century of
technological innovation, it provides a
diverse lineup of products for customers
across a wide range of industries. From
architectural glass and automotive glass
and extending to display glass and
electronic materials—as well as high-func-
tion materials such as chemicals and
ceramics—the AGC Group proposes new
solutions from its unique perspective as a
manufacturer of glass and other materials.
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
25%
Ceramics/
Other
2%
2016
Net Sales
1,282.6
billion yen
CHEMICALS
Electronics
20%
Glass
53%
Sales Trends (Billion yen)
1,348.3 1,326.3
1,282.6
CERAMICS/
OTHER
2014
2015
2016
(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.
9
AGC Report 2017
53%
20%
25%
2%
686.3
692.9
680.0
2014
2015
2016
(Year)
319.7
288.6
258.1
2014
2015
2016
(Year)
318.5 316.6
317.2
2014
2015
2016
(Year)
80.8
68.1 70.8
•Double glazing glass for solar control/heat-insulation
Architectural glass
•Float glass
•Low-emissivity (Low-E) glass
•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
•Polyvinyl chloride
•Vinyl chloride monomer
•Caustic soda
•Urethane materials
Fluorochemicals and specialty chemicals
•Fluoropolymers/films
•Water and oil repellents
active ingredients
•Iodine-related products
•Pharmaceutical and agrochemical intermediates and
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.
2014
2015
2016
(Year)
AGC Report 2017 10
187mm
187mm
Overview of the AGC Group
The AGC Group Creates New Value in the Fields of Glass,
Electronics, Chemicals and Ceramics.
Corporate Data
(As of the end of December 2016)
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
50,963 (consolidated),
6,024 (non-consolidated)
Consolidated Group Companies
204 (165 overseas)
The AGC Group’s business extends into
Business Segment (As of the end of December 2016)
Sales Ratio1
Sales Trends2 (Billion yen)
Main Businesses and Fields/Main Products
GLASS
ELECTRONICS
four fields: glass, electronics, chemicals
and ceramics. Through world-leading
technologies and expertise the Group has
developed over more than a century of
technological innovation, it provides a
diverse lineup of products for customers
across a wide range of industries. From
architectural glass and automotive glass
and extending to display glass and
electronic materials—as well as high-func-
tion materials such as chemicals and
ceramics—the AGC Group proposes new
solutions from its unique perspective as a
manufacturer of glass and other materials.
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
25%
Ceramics/
Other
2%
2016
Net Sales
1,282.6
billion yen
CHEMICALS
Electronics
20%
Glass
53%
Sales Trends (Billion yen)
1,348.3 1,326.3
1,282.6
CERAMICS/
OTHER
2014
2015
2016
(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.
9
AGC Report 2017
53%
20%
25%
2%
686.3
692.9
680.0
2014
2015
2016
(Year)
319.7
288.6
258.1
2014
2015
2016
(Year)
318.5 316.6
317.2
2014
2015
2016
(Year)
80.8
68.1 70.8
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
•Polyvinyl chloride
•Vinyl chloride monomer
•Caustic soda
•Urethane materials
Fluorochemicals and specialty chemicals
•Fluoropolymers/films
•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.
2014
2015
2016
(Year)
AGC Report 2017 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.
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
Caustic soda
(for hand soap)
Filler for cosmetic products
Caustic soda
(for dishwashing detergent)
Sodium bicarbonate
(baking powder)
Supporting
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
11
AGC Report 2017
AGC Report 2017 12
13
AGC Report 2017
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
Consumer Products
The AGC Group provides products that bring comfort and convenience
to daily life and many of the materials vital to their creation.
Supporting Life Science
The AGC Group provides ph armaceuticals and agrochemicals
used in the field of life scie nce, 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 2017 14
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
Product Applications
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.
Glass substrates
for display devices
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
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
Caustic soda
(for hand soap)
Filler for cosmetic products
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
11
AGC Report 2017
AGC Report 2017 12
13
AGC Report 2017
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.
Supporting Life Science
The AGC Group provides ph armaceuticals and agrochemicals
used in the field of life scie nce, 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 2017 14
Global Network
The AGC Group’s Global Business is Built on Three Regional Pillars:
Japan/Asia, Europe and the Americas.
JAPAN
EUROPE
THE
AMERICAS
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 Ameri-
cas. 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 2016)
Japan/Asia
Europe
The Americas
Japan/Asia
67%
The Americas
11%
Europe
22%
2016
Net Sales
1,282.6
billion yen
15
AGC Report 2017
1 Sales Ratio calculated from sales to external customers.
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
Electronic materials
Architectural glass
Display glass
Automotive glass
Chemicals
Display glass
Ceramics/Other
Automotive glass
Chemicals
Architectural glass
Electronic materials
Automotive glass
Chemicals
Employees
Approximately
Employees
Approximately
Employees
Approximately
30,000
16,700
4,300
AGC Report 2017 16
Global Network
Global Network
The AGC Group’s Global Business is Built on Three Regional Pillars:
The AGC Group’s Global Business is Built on Three Regional Pillars:
Japan/Asia, Europe and the Americas.
Japan/Asia, Europe and the Americas.
JAPAN
JAPAN
EUROPE
EUROPE
THE
THE
AMERICAS
AMERICAS
Sales Ratio1 (As of the end of December 2016)
Sales Ratio1 (As of the end of December 2016)
Japan/Asia
Japan/Asia
Europe
Europe
The Americas
The Americas
Japan/Asia
Japan/Asia
67%
67%
The Americas
The Americas
11%
11%
Europe
Europe
22%
22%
2016
2016
Net Sales
Net Sales
1,282.6
1,282.6
billion yen
billion yen
Percentage of
sales by region
Percentage of
sales by region
67%
67%
Percentage of
sales by region
Percentage of
sales by region
22%
22%
Percentage of
sales by region
Percentage of
sales by region
11%
11%
Main Products
Main Products
Main Products
Main Products
Main Products
Main Products
Architectural glass
Architectural glass
Automotive glass
Automotive glass
Display glass
Display glass
Electronic materials
Electronic materials
Chemicals
Chemicals
Ceramics/Other
Ceramics/Other
Architectural glass
Automotive glass
Architectural glass
Automotive glass
Display glass
Display glass
Chemicals
Chemicals
Architectural glass
Automotive glass
Architectural glass
Automotive glass
Electronic materials
Chemicals
Electronic materials
Chemicals
ASIA
ASIA
Main Locations
Main Locations
Glass
Glass
Electronics
Electronics
Chemicals
Chemicals
Ceramics/Other
Ceramics/Other
As economic globalization advances, the AGC Group’s
As economic globalization advances, the AGC Group’s
business extends into over 30 countries and regions with
business extends into over 30 countries and regions with
the regional pillars in Japan/Asia, Europe and the Ameri-
the regional pillars in Japan/Asia, Europe and the Ameri-
cas. In its glass business, which has markets around the
cas. In its glass business, which has markets around the
world, the Group has product development and manu-
world, the Group has product development and manu-
facturing bases in each of these three regions. In its
facturing bases in each of these three regions. In its
electronics business, as its client businesses are concen-
electronics business, as its client businesses are concen-
trated in East Asia, development and manufacturing
trated in East Asia, development and manufacturing
bases are concentrated in Japan and other Asian coun-
bases are concentrated in Japan and other Asian coun-
tries. In the chemicals business, the Group has been
tries. In the chemicals business, the Group has been
working on the enhancement of its manufacturing bases
working on the enhancement of its manufacturing bases
with a focus on Southeast Asia, where infrastructure
with a focus on Southeast Asia, where infrastructure
development is progressing. Utilizing such a global
development is progressing. Utilizing such a global
network, the AGC Group strives to expand businesses
network, the AGC Group strives to expand businesses
and grow even deeper roots in local communities, while
and grow even deeper roots in local communities, while
exploring opportunities to develop new business areas.
exploring opportunities to develop new business areas.
Employees
Employees
Approximately
Approximately
Employees
Employees
Approximately
Approximately
Employees
Employees
Approximately
Approximately
30,000
30,000
16,700
16,700
4,300
4,300
15
15
AGC Report 2017
AGC Report 2017
1 Sales Ratio calculated from sales to external customers.
1 Sales Ratio calculated from sales to external customers.
AGC Report 2017 16
AGC Report 2017 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 2016 estimates by AGC)
Float glass
Global No.1
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 2016 estimates by AGC)
Automotive glass
Global No.1
Laminated Low-E (Low emissivity)
double glazing glass
Outstanding safety and heat insulation performance
“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
“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
Lacobel™ painted glass for indoor applications
Excellent coloring properties and
improved transparency
Madomado™ multi-functional window unit
Adds new features to existing windows
“Sunjoule™” building integrated
photovoltaic devices
Glass with integrated photovoltaics
“UV Verre Premium™” series for automotive glass
A global first!1 All-around 99% UV cut, providing
Light Control glass “WONDERLITE™”
Contributing to improved in-car comfort and
safety and comfort in the vehicle
1 AGC survey as of November 2015 (when single-glazed glass
is used for everything but the windshield)
energy conservation
Outstanding weather resistance, sound insulation
Glass for railroads
and heat insulation
Architectural glass pursues superior design,
improved comfort and reduced
environmental impact
Automotive glass that pursues superior safety,
design sensibility, comfort and
environmental performance.
17
AGC Report 2017
AGC Report 2017 18
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
with anti-condensation and anti-reflective properties. The
range of products—such as float glass, fabricated glass,
Group’s architectural glass business holds a world-leading
decorative glass and glass for photovoltaic devices—which
market share.
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
Market share rankings for main products
(Based on fiscal 2016 estimates by AGC)
Float glass
Global No.1
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 2016 estimates by AGC)
Automotive glass
Global No.1
Laminated Low-E (Low emissivity)
double glazing glass
“ATTOCH™” Low-E glass for
on-site retrofitting installation
Outstanding safety and heat insulation performance
Ideal for remodeling buildings and stores
“Clearsight™” anti-reflective glass
Minimizing light reflections on the glass surface
“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
Lacobel™ painted glass for indoor applications
Madomado™ multi-functional window unit
“Sunjoule™” building integrated
Excellent coloring properties and
improved transparency
Adds new features to existing windows
photovoltaic devices
Glass with integrated photovoltaics
“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
Automotive glass that pursues superior safety,
design sensibility, comfort and
environmental performance.
17
AGC Report 2017
AGC Report 2017 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
glass products for next-generation display devices.
Market share rankings for main products
(Based on fiscal 2016 estimates by AGC)
Glass substrates for TFT-LCDs
Global No.2
Glass substrates for TFT-LCDs
Key materials for displays
Electronic Materials Business
In its electronic materials business, the AGC Group contrib-
facturing components, CMOS/CCD blue filters and other
utes to the most advanced sectors of the electronics indus-
optical materials for smartphones and digital cameras, and
try by applying the leading-edge technologies it has
glass frit and paste display materials for electrical insulation
fostered in its glass, chemicals, and ceramics businesses,
and sealing.
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 manu-
Market share rankings for main products
(Based on fiscal 2016 estimates by AGC)
Quartz materials for stepper lenses
Global No.1
Applied Glass Materials Business
The AGC Group 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.
Enabling image sensors to match the luminosity
Ensuring high quality in semiconductor processing
Synthetic quartz glass
CMOS/CCD blue filter
of the human eye
Chemical mechanical polishing (CMP) slurry and
Glass frit
Enabling multi-layered components to be made
other applications in various industries
Used for electrical insulation, airtight seals, and
polishing solutions
extremely flat and even
“Roiceram™-HS” high-purity SiC jigs
Used for heat treatment and other
semiconductor processes
“XCV™” glass for light guide plates
Enabling liquid crystal displays to be made thinner
“Dragontrail™ Pro” 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
“Leoflex™” chemically strengthened specialty glass
Used for various applications in architecture, solar
cells and more
19
AGC Report 2017
Glass substrates for displays
contribute to the continuous
evolution of high definition
imagery
AGC Report 2017 20
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
glass products for next-generation display devices.
Market share rankings for main products
(Based on fiscal 2016 estimates by AGC)
Glass substrates for TFT-LCDs
Global No.2
Glass substrates for TFT-LCDs
Key materials for displays
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 manu-
facturing 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 2016 estimates by AGC)
Quartz materials for stepper lenses
Global No.1
Applied Glass Materials Business
The AGC Group 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.
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
“XCV™” glass for light guide plates
Enabling liquid crystal displays to be made thinner
“Dragontrail™ Pro” 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
“Leoflex™” chemically strengthened specialty glass
Used for various applications in architecture, solar
cells and more
19
AGC Report 2017
Glass substrates for displays
contribute to the continuous
evolution of high definition
imagery
AGC Report 2017 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 2016 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
Hydrogen
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™
Propylene oxide (PO)
Propylene glycol (PG)
Polypropylene
glycol (PPG)
Polyurethanes
Chlor-alkali
Polyurethanes
Fluorine containing pharmaceutical
& agrochemical intermediates
& active ingredients
Biopharmaceutical CDMO (Contract
Development & Manufacturing
Organization) Services
Life
science
Chlor-alkali and urethane
Fluorochemicals and specialty chemicals
are commonly applied in the automotive and
In its chlor-alkali and urethane business, the
In its fluorine and specialty chemicals
aircraft industries, and its fluoropolymer films
AGC Group supplies highly versatile basic
business, the AGC Group’s fluorochemical
and fluoropolymer resins for coating are used
chemical products—such as caustic soda
products have gained a strong reputation for
in the building construction industry. Likewise,
and sodium bicarbonate—used in various
their outstanding heat resistance, chemical
its multifunctional materials are used in
industries. In addition, its urethane-related
resistance and weather resistance. Led by
electronic devices and displays. In addition,
products are used as raw materials in thermal
Fluon® ETFE fluorinated resin—which holds
the AGC Group contributes to the life science
insulation, vehicle seats and other products
top global market share—the business’ wide
industry by supplying services and products
that are vital for providing comfort in our
range of high-performance products are
such as pharmaceutical and agrochemical
everyday lives.
used in various industries. For example, its
intermediates and active ingredients.
fluorinated resins and fluorinated elastomers
PREMINOL™ high purity and high molecular
“Fluon® ETFE FILM” Fluoropolymer film
“LUMIFLON™” highly weather-resistant
weight polypropylene glycol
Used widely as an adhesive and sealant
Used for a wide range of applications due to its
fluoropolymer resin for coatings
excellent transparency and weatherability
Used for coating buildings and structures
Sodium bicarbonate
such as dialysis fluid
Used widely, including medical applications
“HFO-1234yf” refrigerant for next-generation
“Tafluprost” pharmaceutical active ingredients
vehicle air-conditioners
Helping to reduce environmental load
Photo HFO-1234yf manufacturing plant
Used in medications for treating glaucoma
Note A glaucoma and ocular hypertension therapeutic agent
jointly developed with Santen Pharmaceutical Co., Ltd.
21
AGC Report 2017
Fluon® ETFE FILM
used for the Allianz Arena,
a soccer stadium in Germany
AGC Report 2017 22
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
ucts ranging from basic chemicals like caustic soda to highly
the production of soda ash, the main raw material for
functional chemicals such as Fluon® ETFE, which holds the
producing glass.
number-one global market share for fluorinated resins.
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-
The AGC Group’s Chemical Chain
Market share rankings for main products
(Based on fiscal 2016 estimates by AGC)
Fluorinated resins (Fluon® ETFE)
Global No.1
Chlor-alkali and urethanes
Fluorochemicals and specialty chemicals
Methane
Fluorite
Hydrofluoric
acid
Gases and solvents
Chlorinated
solvents
Liquid chlorine
Sodium
hypochlorite
Raw salt
Potassium
chloride
Electrolysis
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™
Caustic soda
Sodium
bicarbonate
Vinyl chloride
monomer
Vinyl chloride
polymer
Caustic
potash
Potassium
carbonate
Epichlorohydrin
Hydrogen
Propylene oxide (PO)
Propylene glycol (PG)
Polypropylene
glycol (PPG)
Polyurethanes
Chlor-alkali
Polyurethanes
Fluorochemicals
Fluorine containing pharmaceutical
& agrochemical intermediates
& active ingredients
Biopharmaceutical CDMO (Contract
Development & Manufacturing
Organization) Services
Life
science
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.
Chlorine
Chloroform
HCFC-22
Tetrafluoro-
ethylene
PREMINOL™ high purity and high molecular
weight polypropylene glycol
Used widely as an adhesive and sealant
“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.
21
AGC Report 2017
Fluon® ETFE FILM
used for the Allianz Arena,
a soccer stadium in Germany
AGC Report 2017 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.
New Products
Products for New Markets
Combining diverse technologies, the AGC Group is creating products
with even higher added value for new markets.
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
operations and lower lifecycle costs by supplying high-durabil-
ity, 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.
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
Opening Up New Possibilities for Glass Signage
by Integrating Liquid Crystal Displays
by Enabling Image Projection Onto Transparent Glass
Infoverre™ digital signage is a brand-new technology comprised
Manufactured using a unique process, Glascene™ is a glass
of an LCD directly attached on building exterior or interior
screen that enables images to be projected onto it. This new
glass. The AGC Group has enabled non-reflective, clear
type of screen retains its transparency when images are not
images that seem to float in the air by applying integrated
projected. The images can be projected at sizes over 100
optical technologies cultivated through its chemicals business.
inches, from the front or rear of the screen—depending on
A mount or monitor stand is not necessary, so the signage
the Glascene™ screen type.
can be installed without using much space.
“Tough Coore™” ceramic material for
heat shielding pavement
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
Just ordinary glass when
not in use.
Castable refractories for industrial furnaces
Supporting stable operations with an
extensive lineup
Attached to the windows of the Shin-Marunouchi Building in Tokyo, 55-inch
GlasceneTM displays beautiful images while
infoverreTM LCDs show a range of advertisements. This product received a
retaining its transparency.
2015 Digital Signage Award in the Technology category.
For Next-generation Mobility Markets
Making vehicle interiors more comfortable with user-friendly touch panels
Fused cast refractory bricks
for glass melting furnace crown
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 developing
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.
23
AGC Report 2017
AGC Report 2017 24
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.
New Products
Products for New Markets
Combining diverse technologies, the AGC Group is creating products
with even higher added value for new markets.
Ceramics Business
The AGC Group’s ceramics business has a long history, dating
operations and lower lifecycle costs by supplying high-durabil-
back to 1916, when it began producing refractory bricks for
ity, high-performance fused cast bricks and related solutions.
glass melting furnaces. The business is now operated by AGC
In environmental and energy-related businesses, AGC
Ceramics Co., Ltd. With its core businesses in glass engineer-
Ceramics offers a wide range of ecological solutions, imple-
ing, environmental and energy-related domains, the compa-
menting castable refractories that make industrial furnaces
ny leverages its diverse lineup of refractory products and
more energy efficient and reduce environmental load. The
leading-edge engineering technologies.
company also focuses on developing ceramic materials that
In the glass engineering business, the company aims to
help reduce global environmental impact, such as high-tem-
help its customers improve energy efficiency and extend the
perature fine ceramic fans and sputtering targets for
service life of their glass furnaces, as well as ensure stable
eco-friendly glass.
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
Infoverre™ digital signage is a brand-new technology comprised
of an LCD directly attached on building exterior or interior
glass. The AGC Group has enabled non-reflective, clear
images that seem to float in the air by applying integrated
optical technologies cultivated through its chemicals business.
A mount or monitor stand is not necessary, so the signage
can be installed without using much space.
Opening Up New Possibilities for Glass Signage
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 when images are not
projected. The images can be projected at sizes over 100
inches, from the front or rear of the screen—depending on
the Glascene™ screen type.
“Tough Coore™” ceramic material for
heat shielding pavement
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
Just ordinary glass when
not in use.
Castable refractories for industrial furnaces
Supporting stable operations with an
extensive lineup
Attached to the windows of the Shin-Marunouchi Building in Tokyo, 55-inch
infoverreTM LCDs show a range of advertisements. This product received a
2015 Digital Signage Award in the Technology category.
GlasceneTM displays beautiful images while
retaining its transparency.
For Next-generation Mobility Markets
Making vehicle interiors more comfortable with user-friendly touch panels
Fused cast refractory bricks
for glass melting furnace crown
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 developing
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.
23
AGC Report 2017
AGC Report 2017 24
Innovation Management
The AGC Group is Combining a Diverse Range of
Core Technologies to Drive All-New Innovations.
Core Technologies
Research and
Development Framework
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 technologies
are used for creating advanced high-performance products.
To underpin such research and development initiatives, the
AGC Group is also working on the development and sophis-
tication 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 challeng-
es they face.
AGC Asahi Glass conducts research and development with
the aim to develop more competitive and innovative core
technologies and new products. The Innovative Technology
Research Center creates innovative core technologies and
applies advanced shared fundamental technologies to
promote progress in product development. The New Product
R&D Center develops new products and provides solutions
to technical issues concerning existing products. The Produc-
tion Technology Division develops and refines production
technologies. In January 2017, the Float Technology Promo-
tion Division, which controls the shared technology platform
of the flat glass manufacturing process, was newly created.
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 six
relevant organizations in its Technology General 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
Technology General Division
Responsible for shared fundamentals and mid- to long-term development
Planning Division
R&D Target Setting Process
S
t
e
p
1
S
t
e
p
2
S
t
e
p
3
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 2017
Innovative Technology
Research Center
New Product
R&D Center
Production
Technology Division
Intellectual
Property Division
Float Technology
Promotion Division
Collaboration
Each In-house Company / SBU1 R&D Division
Responsible for product development technology,
production technology implement
Building & Industrial
Glass Company
R&D Division
Automotive Company
R&D Division
Electronics Company
R&D Division
Chemicals Company
R&D Division
Applied Glass Materials
General Division
R&D Division
AGC Ceramics
R&D Division
1 Strategic Business Units
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
AGC Group gathers and studies leading-edge techno-
long terms, the AGC Group draws its own technolo-
logical information and market trends through expert
gy roadmap called “Technology Outlook,” which is
personnel sent to strategic locations in Japan, South-
based on projections of the products and technolo-
east Asia, Europe and the United States, where
gies that will be in high demand over the next 10 to 20
universities and corporate research facilities are
years. To develop and commercialize such products
concentrated. This activity helps strengthen the
and technologies, the AGC Group also creates a
relationship between marketing and product devel-
business roadmap called “Business Outlook” which
opment operations on a global scale, explore the
consists of survey results on whether they are suitable
seeds of new businesses, build on the Group’s
for the Group and can sustainably generate profits.
technologies and expand business networks.
As a result of extensive studies and analysis, smart
Another R&D initiative is open innovation. By
community-related markets have been identified as
making extensive use of resources from outside
crucial R&D targets to explore in the future. The AGC
through strategic business alliances as well as mergers
Group is now moving forward with proactive R&D
and acquisitions, the AGC Group aims to accelerate
and business development in related areas.
technical innovations and opportunities for new
A key to successful commercialization of new
market creation, and shorten product development
products and technologies is a close link between the
lead times. The Group also participates in national
market and product development. Under an initiative
projects related to smart communities, collaborating
called Global Technology Networking (GTNET), the
with other companies and research institutions.
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 2017 26
Innovation Management
The AGC Group is Combining a Diverse Range of
Core Technologies to Drive All-New Innovations.
Core Technologies
Research and
Development Framework
As shown in the following diagram, the AGC Group has
AGC Asahi Glass conducts research and development with
accumulated a diverse range of core technologies: glass and
the aim to develop more competitive and innovative core
ceramic material technologies respond to various needs in
technologies and new products. The Innovative Technology
society, coating and glass integration technologies add more
Research Center creates innovative core technologies and
value to products, and fluorine and chemistry technologies
applies advanced shared fundamental technologies to
are used for creating advanced high-performance products.
promote progress in product development. The New Product
To underpin such research and development initiatives, the
R&D Center develops new products and provides solutions
AGC Group is also working on the development and sophis-
to technical issues concerning existing products. The Produc-
tication of its fundamental technologies such as simulation,
tion Technology Division develops and refines production
analysis, sensing and process design technologies.
technologies. In January 2017, the Float Technology Promo-
By combining and integrating these technologies and
tion Division, which controls the shared technology platform
then drawing from the vast technological possibilities that
of the flat glass manufacturing process, was newly created.
result, the AGC Group intends to drive innovations that
Based on an approach that integrates market and product
bring new value to trades and communities, while also meet-
development, AGC Asahi Glass is working on R&D in an agile
ing the needs of customers and helping resolve the challeng-
manner while promoting close cooperation between six
es they face.
relevant organizations in its Technology General 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
Responsible for shared fundamentals and mid- to long-term development
Technology General Division
Glass Integration
Technologies
•Laminate technology
•Encapsulation technology
Coating Technologies
•Dry coating
•Wet coating
•Coating design
Innovative Technology
Research Center
New Product
R&D Center
Production
Technology Division
Intellectual
Property Division
Float Technology
Promotion Division
Fluorine & Chemistry
Ceramic Material
Collaboration
Glass Material
Technologies
•Glass material design
•Glass forming
technology
•Glass production
technology
Technologies
•Fluorine chemistry
•Polymer materials
•Biochemistry
•Electrochemistry
•Nano-materials
•Inorganic materials
Technologies
•Ceramic material
design
•Refractory materials
Each In-house Company / SBU1 R&D Division
Responsible for product development technology,
production technology implement
Building & Industrial
Glass Company
R&D Division
Automotive Company
Electronics Company
R&D Division
R&D Division
Chemicals Company
R&D Division
Applied Glass Materials
General Division
R&D Division
AGC Ceramics
R&D Division
1 Strategic Business Units
Fundamental Technologies
•Simulation technology •Analysis technology
•Sensing technology •Process design (engineering)
25
AGC Report 2017
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 technolo-
gy 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 techno-
logical information and market trends through expert
personnel sent to strategic locations in Japan, South-
east 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.
Planning Division
R&D Target Setting Process
S
t
e
p
1
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 2017 26
CSR Management
By Specifying CSR Material Issues, the AGC Group Promotes
CSR Management within Corporate Management.
Approach to CSR and
Related Policies
CSR Promotion System
The PDCA Cycle and
Material Issues
The CSR PDCA Cycle
The AGC Group’s Stakeholders
“Look Beyond”
The AGC Group Vision
(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, and
develops concrete measures to address them.
Furthermore, issues relevant to compliance, Environment,
Occupational Health, Safety and Quality (EHSQ) manage-
ment, risk management and other topics are shared globally
across the AGC Group through subcommittees specializing
in relevant areas. The information is then reflected in measures
implemented by the Group’s In-house Companies and
Strategic Business Units (SBUs).
In 2011, the AGC Group began CSR monitoring based on
ISO 26000. In CSR monitoring, issues defined in ISO 26000
are classified into four categories on the basis of their
importance to either the AGC Group or its stakeholders.
From these categories, a CSR Matrix is created, and issues
judged important to both sides are recognized as CSR
Material Issues. At present, there are eleven established
CSR Material Issues, and their targets and current progress
are disclosed on the 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
CSR-related Policies
CSR Promotion System
Matrix of CSR Issues
Material Issues relating to the AGC Group
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 Committee (meets quarterly)
Deliberates over general policies and
issues related to the Group’s CSR activities
Chair: Group CEO
Office: Group Corporate General Affairs
Division 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
CSR 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
s
r
e
d
l
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
Organizational
Governance
Decision-making processes and
Organizational
structures
protection
Conditions of work and social
AGC Group’s
material issues
governance
Fair working conditions
Occupational health &
safety
Human development and
training in the workplace
Human resource
development
Prevention of pollution
Pollution prevention
Human Rights and
Labor Practices
Health and safety at work
Issues for which
additional measures are
deemed unnecessary
Issues for which
a framework is
to be developed
The Environment
Sustainable resource use
Climate change mitigation and
Response to climate
Material issues for the AGC Group
adaptation
Anti-corruption
Fair Operating
Practices
Fair competition
Sustainable use of
resources
change
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
27
AGC Report 2017
AGC Report 2017 28
CSR Management
By Specifying CSR Material Issues, the AGC Group Promotes
CSR Management within Corporate Management.
The AGC Group Vision
“Look Beyond”
(see page 2) is
The AGC Group established the CSR Committee in 2005 as
comprised of “Our Mission,” “Our Shared Values” and “Our
an in-house organization dedicated to promoting CSR. On
Spirit.” This Vision provides the basis for the Management
the CSR Committee, the AGC Group CEO presides as the
Policy AGC plus, through which the Group strives to offer
committee chair, while the heads of each business and
added value (add a “plus”) to all stakeholders. By following
corporate division deliberate over general policies and issues
this approach, the Group strives to both foster trust and
related to the Group’s CSR activities on a quarterly basis, and
meet the expectations of the community and contributes to
develops concrete measures to address them.
the creation of a sustainable society.
Furthermore, issues relevant to compliance, Environment,
In addition, the AGC Group has established “the AGC
Occupational Health, Safety and Quality (EHSQ) manage-
Group Charter of Corporate Behavior,” which outlines the
ment, risk management and other topics are shared globally
corporate social responsibility expected of Group compa-
across the AGC Group through subcommittees specializing
nies, and “the AGC Group Code of Conduct,” which clarifies
in relevant areas. The information is then reflected in measures
the standards of behavior for all employees.
implemented by the Group’s In-house Companies and
Strategic Business Units (SBUs).
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
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.
Group companies world wide
CSR Committee (meets quarterly)
Deliberates over general policies and
issues related to the Group’s CSR activities
Chair: Group CEO
Office: Group Corporate General Affairs
Division CSR Office
Subcommittees
•Compliance Committee
•EHSQ Management
•Enterprise Risk Management
Each In-house
Company/SBU
CSR Offices in In-house Company/SBU
Corporate Divisions
Corporate Planning
Division
General Affairs
Division
Legal Division
Support
and
guidance
Human Resources
Division
Purchase & Logistics
Division
Approach to CSR and
Related Policies
CSR Promotion System
The PDCA Cycle and
Material Issues
The CSR PDCA Cycle
The AGC Group’s Stakeholders
In 2011, the AGC Group began CSR monitoring based on
ISO 26000. In CSR monitoring, issues defined in ISO 26000
are classified into four categories on the basis of their
importance to either the AGC Group or its stakeholders.
From these categories, a CSR Matrix is created, and issues
judged important to both sides are recognized as CSR
Material Issues. At present, there are eleven established
CSR Material Issues, and their targets and current progress
are disclosed on the 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
CSR-related Policies
CSR Promotion System
Matrix of CSR Issues
Material Issues relating to the AGC Group
CSR 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
27
AGC Report 2017
AGC Report 2017 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 corporate
Overview of Corporate Governance Structure (as of March 30, 2017)
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 four In-house Companies: the Building &
Industrial Glass Company, the Automotive Company, the Electronics Company and the Chemicals Company. Business units smaller than this are defined as Strategic Business Units (SBUs).
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, 2017
Committee Activities in Fiscal 2016
Number of
members
Duties
Number of
meetings
held
3 times
Meetings of the Board of Directors in Fiscal 2016
Meetings held
Attendance rate of members of the Board of Directors
100%
Attendance rate of corporate auditors
14
98%
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
9 times
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
Assessment of the Effectiveness of the Board of Directors
Evaluating the Effectiveness of the Board of Directors
The effectiveness of the Board of Directors of AGC Asahi
Structure and Role of the Board of Corporate Auditors
Glass is subject to annual assessment and evaluation.
The Board of Corporate Auditors audits the performance of
Evaluation of the effectiveness of the Board of
directors by attending important meetings, including meet-
Directors in 2016 took the form of self-evaluation by all
ing of the Board of Directors and the Management Committee,
members comprising the Board.
and by holding regular meetings with representative directors.
First, each director evaluated the effectiveness of the
The corporate auditors also enhance the effectiveness of
Board by responding to the questionnaire and answering
auditing by exchanging views and checking information
questions in an individual interview. The Board then exam-
concerning audit results and other matters in cooperation
ined the evaluation results and discussed measures to
with accounting auditor and the Internal Audit Division. As
improve the effectiveness of the Board of Directors.
of March 30, 2017, AGC Asahi Glass employed four corpo-
rate auditors in total, of which three were outside corporate
Outline of the Evaluation Results and Future Efforts
auditors.
The results of the above evaluation showed that the Board
of Directors and the Advisory Committee of AGC Asahi
Meetings of the Board of Corporate Auditors in Fiscal 2016
Glass, among others, were conducting appropriate
management and securing adequate performance through
Meetings held
14
Attendance rate of members of the Board of Corporate Auditors
96%
active and frank discussion in a small group.
It was also clarified that there is room for improvement
on reporting of IR activities to outside directors and
enhancement of strategic discussions.
The AGC Group will continue to maintain the appro-
priate management system and an environment to ensure
frank discussions within the Board of Directors and the
Framework for
Management Execution
Advisory Committee, working diligently on the issues
At AGC Asahi Glass, the management execution function is
clarified by the effectiveness evaluation. This will continu-
the responsibility of executive officers below the president
ously improve the functions of the Board of Directors,
& CEO. As an advisory committee to the president & CEO,
Advisory Committee and other parties.
the Company establishes the Management Committees
and discusses business management monitoring and
Structure and Roles of the Nominating Committee and
decisions regarding management execution. A system of
Compensation Committee
In-house Companies (quasi-subsidiaries within the Group)
AGC Asahi Glass established its Nominating and Compensation
has been introduced and a global consolidated manage-
Committees in 2003 as voluntary advisory committees of the
ment system is adopted with regard to business execution.
Board of Directors.
Much of the responsibility and authority for business execu-
tion has been delegated to the In-house Companies and
Strategic Business Units.
29
AGC Report 2017
AGC Report 2017 30
In its Compensation Principles, AGC Asahi Glass sets out its
basic stances and philosophies on overall compensation for
officers as follows.
Under the company’s compensation system, directors who also
serve as executive officers receive a fixed monthly salary, perfor-
mance-linked bonuses, and stock compensation-type stock
options, while directors who do not serve as executive officers
receive a fixed monthly salary and stock compensation-type
stock options. Meanwhile, outside directors and corporate
auditors only receive a monthly salary.
Approach to Corporate Governance
Framework for
Management Oversight
management and knowledge of corporate governance
related issues. In principle, meetings of the Board of Directors
are chaired by an outside director.
Committee Activities in Fiscal 2016
Number of
members
Duties
Under the AGC Group Corporate Governance Basic Policy,
Structure and Role of the Board of Directors
AGC Asahi Glass strives to strengthen and improve its
The Board of Directors of AGC Asahi Glass consists of seven
1 As of March 30, 2017
Meetings of the Board of Directors in Fiscal 2016
corporate governance with a view to ensuring its sustain-
directors, each appointed to a one-year term, and includes
Meetings held
14
able growth and raising the AGC Group’s corporate value
three outside directors, including one female director1. The
over the medium and long term.
Board is responsible for the approval of the AGC Group’s
Attendance rate of members of the Board of Directors
100%
The Company is responsible for managing the AGC
basic policies and monitoring its management.
Attendance rate of corporate auditors
98%
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
9 times
Assessment of the Effectiveness of the Board of Directors
Evaluating the Effectiveness of the Board of Directors
The effectiveness of the Board of Directors of AGC Asahi
Glass is subject to annual assessment and evaluation.
Evaluation of the effectiveness of the Board of
Directors in 2016 took the form of self-evaluation by all
members comprising the Board.
First, each director evaluated the effectiveness of the
Board by responding to the questionnaire and answering
questions in an individual interview. The Board then exam-
ined the evaluation results and discussed measures to
improve the effectiveness of the Board of Directors.
Outline of the Evaluation Results and Future Efforts
The results of the above evaluation showed that the Board
of Directors and the Advisory Committee of AGC Asahi
Glass, among others, were conducting appropriate
management and securing adequate performance through
active and frank discussion in a small group.
It was also clarified that there is room for improvement
on reporting of IR activities to outside directors and
enhancement of strategic discussions.
The AGC Group will continue to maintain the appro-
priate management system and an environment to ensure
frank discussions within the Board of Directors and the
Advisory Committee, working diligently on the issues
clarified by the effectiveness evaluation. This will continu-
ously improve the functions of the Board of Directors,
Advisory Committee and other parties.
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.
Structure and Role of the Board of Corporate Auditors
The Board of Corporate Auditors audits the performance of
directors by attending important meetings, including meet-
ing of the Board of Directors and the Management Committee,
and by holding regular meetings with representative 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, 2017, AGC Asahi Glass employed four corpo-
rate auditors in total, of which three were outside corporate
auditors.
Meetings of the Board of Corporate Auditors in Fiscal 2016
Meetings held
14
Attendance rate of members of the Board of Corporate Auditors
96%
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.
29
AGC Report 2017
AGC Report 2017 30
Corporate Governance
The AGC Group is Raising the Transparency and
Agility of Management Oversight and Execution.
Group as a whole, beyond the conventional framework of a
The Company first employed outside directors in 2002
parent company and subsidiaries. On that basis, the follow-
in an effort to enhance the management oversight function.
ing is the Company’s basic approach to its corporate gover-
Outside directors are appointed in compliance with the
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
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 corporate
Overview of Corporate Governance Structure (as of March 30, 2017)
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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
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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 four In-house Companies: the Building &
Industrial Glass Company, the Automotive Company, the Electronics Company and the Chemicals Company. Business units smaller than this are defined as Strategic Business Units (SBUs).
In its Compensation Principles, AGC Asahi Glass sets out its
basic stances and philosophies on overall compensation for
officers as follows.
Under the company’s compensation system, directors who also
serve as executive officers receive a fixed monthly salary, perfor-
mance-linked bonuses, and stock compensation-type stock
options, while directors who do not serve as executive officers
receive a fixed monthly salary and stock compensation-type
stock options. Meanwhile, outside directors and corporate
auditors only receive a monthly salary.
Corporate Governance
Board of Directors, Corporate Auditors and Executive Officers
Compensation System
Basic Philosophy on Compensation System for Directors
and Corporate Auditors
AGC Asahi Glass sets out its principles which consist of the
basic stance and philosophy on overall compensation for
directors and corporate auditors 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 decision-making process of determining compensation
shall be objective and highly transparent.
Of the performance-based compensation for directors,
the amount of the Bonuses varies depending on consolidat-
ed business results for a single fiscal year and a period
covered by the mid-term management plan, with the aim of
further encouraging directors to achieve performance goals
for both the single fiscal year and the medium term. This
amount may, in principle, fluctuate between plus and minus
100% of the standard amount of payment. Moreover, 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 to Directors and Corporate Auditors in Fiscal 2016
Number of
recipients
Total payment
(millions of yen)
All directors
Outside directors only
All corporate auditors
Outside corporate auditors only
7
3
4
3
450
46
93
57
Composition of Compensation for Directors and
Corporate Auditors
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.
The compensation for directors and corporate auditors is as
follows.
Composition of Compensation for Directors and Corporate Auditors
Type of compensation
Eligible persons
Directors
Fixed
compensation
Monthly
compensation
All directors
Performance-based
compensation
Performance-based
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
Directors of AGC Asahi Glass are responsible for management of
the AGC Group from a short-, medium- and long-term perspec-
tive, and aim to realize the sustainable growth of the Group and
enhance its corporate value. The company’s performance-based
compensation system is calculated in consideration of the
balance of the short-, medium- and long-term perspectives. As a
part of total compensation, performance-based compensa-
tion is calculated based on the standard amount of payment,
approximately in a 2:1:1 ratio of Monthly compensation:
Bonuses: Stock Compensation-Type Stock Options, respectively.
31
AGC Report 2017
Board of Directors
Kazuhiko Ishimura
Takuya Shimamura
Yoshinori Hirai
Shinji Miyaji
Representative Director & Chairman
Representative Director, President & CEO
Director, Senior Executive Officer & CTO
Director, Senior Executive Officer & CFO
Hiroshi Kimura
Director (Outside)
Masako Egawa
Director (Outside)
Appointed in March 2013
Appointed in March 2014
Member of the Nominating Committee and
Member of the Nominating Committee and
Compensation Committee
Advisor to Japan Tobacco Inc.
Outside Director of Nomura Holdings, Inc.
Outside Director of IHI Corporation
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.
Yasuchika Hasegawa
Director (Outside)
Appointed in March 2017
Member of the Nominating Committee and
Compensation Committee
Director and Chairman of the Board of Takeda
Pharmaceutical Co., Ltd.
Outside Director of Tokyo Electronic Power
Company Holdings, Inc.
Corporate
Auditors
Tetsuo Tatsuno
Yasushi Marumori
(Outside)
Toru Hara
(Outside)
Hiroshi Kawamura
(Outside)
Executive Officers
President & CEO
Executive Officers
Takuya Shimamura
Tadayuki Oi
CEO
Senior Vice President of Building
& Industrial Glass Company
Senior Executive Officers
Shinichi Kawakami
Marehisa Ishiko
President of Automotive Company
Akinobu Shimao
GM of General Affairs Division
President of AGC Ceramics Co.,
Jean-François Heris
President of Building & Industrial
Ltd.
GM of Technology General
Glass Company
Yoshinori Hirai
CTO
Division
CFO
Division
Shinji Miyaji
GM of Corporate Planning
GM of Export Compliance Control
Directorate
Yoshinori Kobayashi
President of Electronics Company
Masao Nemoto
President of Chemicals Company
Tomoya Takigawa
Research Center,
Technology General Division
Kimikazu Ichikawa
Chief Representative of AGC
Group for Asia Pacific
Shigekuni Inoue
GM of Production Technology
Div., Technology General Division
Hiroyuki Watanabe
GM of New Product R&D Center,
Technology General Division
Seigo Washinoue
GM of Display Glass General
Division Electronics Company
Kazuaki Koga
Naoki Sugimoto
GM of Essential Chemicals
GM of Business Development
General Div., Chemicals Company
Division
Kenzo Moriyama
Fumiaki Hayashi
GM of Strategy & Planning Office,
GM of Purchase & Logistics
Corporate Planning Division
Division
Takashizu Minato
GM of Performance Chemicals
General Div., Chemicals Company
Katsufumi Yajima
Senior Vice President of
Automotive Company
Masahiro Takeda
Toshiro Kasuya
Regional President for Asia Pacific,
GM of Finance & Control Division
Tadashi Hiraoka
GM of Technology Management
General Div., Chemicals Company
Company
Takashi Misu
GM of Human Resources Division
Tatsuo Sugiyama
Regional President for Americas,
Automotive Company
Takahisa Sugiyama
GM of Electronic Materials
General Div., Electronics Company
Jean-Marc Meunier
Regional President for Europe,
Automotive Company
GM of Innovative Technology
Building & Industrial Glass
Note GM: General Manager
As of 30 March, 2017
AGC Report 2017 32
Corporate Governance
Board of Directors, Corporate Auditors and Executive Officers
Compensation System
Board of Directors
Of the performance-based compensation for directors,
the amount of the Bonuses varies depending on consolidat-
ed business results for a single fiscal year and a period
covered by the mid-term management plan, with the aim of
Basic Philosophy on Compensation System for Directors
further encouraging directors to achieve performance goals
and Corporate Auditors
for both the single fiscal year and the medium term. This
AGC Asahi Glass sets out its principles which consist of the
amount may, in principle, fluctuate between plus and minus
basic stance and philosophy on overall compensation for
100% of the standard amount of payment. Moreover, the
directors and corporate auditors as follows.
Kazuhiko Ishimura
Representative Director & Chairman
Takuya Shimamura
Representative Director, President & CEO
Yoshinori Hirai
Director, Senior Executive Officer & CTO
Shinji Miyaji
Director, Senior Executive Officer & CFO
Hiroshi Kimura
Director (Outside)
Masako Egawa
Director (Outside)
Yasuchika Hasegawa
Director (Outside)
Appointed in March 2013
Member of the Nominating Committee and
Compensation Committee
Advisor to Japan Tobacco Inc.
Outside Director of Nomura Holdings, Inc.
Outside Director of IHI Corporation
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.
Appointed in March 2017
Member of the Nominating Committee and
Compensation Committee
Director and Chairman of the Board of Takeda
Pharmaceutical Co., Ltd.
Outside Director of Tokyo Electronic Power
Company Holdings, Inc.
Corporate
Auditors
Tetsuo Tatsuno
Yasushi Marumori
(Outside)
Toru Hara
(Outside)
Hiroshi Kawamura
(Outside)
Executive Officers
President & CEO
Takuya Shimamura
CEO
Senior Executive Officers
Marehisa Ishiko
President of Automotive Company
Jean-François Heris
President of Building & Industrial
Glass Company
Yoshinori Hirai
CTO
GM of Technology General
Division
Shinji Miyaji
CFO
GM of Corporate Planning
Division
GM of Export Compliance Control
Directorate
Yoshinori Kobayashi
President of Electronics Company
Masao Nemoto
President of Chemicals Company
Executive Officers
Tadayuki Oi
Senior Vice President of Building
& Industrial 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
Kimikazu Ichikawa
Chief Representative of AGC
Group for Asia Pacific
Shigekuni Inoue
GM of Production Technology
Div., Technology General Division
Hiroyuki Watanabe
GM of New Product R&D Center,
Technology General Division
Seigo Washinoue
GM of Display Glass General
Division Electronics Company
Kazuaki Koga
GM of Essential Chemicals
General Div., Chemicals Company
Naoki Sugimoto
GM of Business Development
Division
Kenzo Moriyama
GM of Strategy & Planning Office,
Corporate Planning Division
Fumiaki Hayashi
GM of Purchase & Logistics
Division
Takashizu Minato
GM of Performance Chemicals
General Div., Chemicals Company
Katsufumi Yajima
Senior Vice President of
Automotive Company
Toshiro Kasuya
GM of Finance & Control Division
Tadashi Hiraoka
GM of Technology Management
General Div., Chemicals Company
Masahiro Takeda
Regional President for Asia Pacific,
Building & Industrial Glass
Company
Takashi Misu
GM of Human Resources Division
Tatsuo Sugiyama
Regional President for Americas,
Automotive Company
Takahisa Sugiyama
GM of Electronic Materials
General Div., Electronics Company
Jean-Marc Meunier
Regional President for Europe,
Automotive Company
Note GM: General Manager
As of 30 March, 2017
AGC Report 2017 32
• 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 decision-making process of determining compensation
shall be objective and highly transparent.
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 to Directors and Corporate Auditors in Fiscal 2016
Number of
recipients
Total payment
(millions of yen)
All directors
Outside directors only
All corporate auditors
Outside corporate auditors only
7
3
4
3
450
46
93
57
Composition of Compensation for Directors and
Corporate Auditors
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.
The compensation for directors and corporate auditors is as
follows.
Composition of Compensation for Directors and Corporate Auditors
Type of compensation
Eligible persons
Directors
Fixed
compensation
Monthly
compensation
All directors
Performance-based
Performance-based
compensation
bonuses
Directors who also
serve as executive
officers
Stock
compensation-type
stock options
Directors excluding
outside directors
Corporate
Fixed
auditors
compensation
Monthly
compensation
All corporate
auditors
Directors of AGC Asahi Glass are responsible for management of
the AGC Group from a short-, medium- and long-term perspec-
tive, and aim to realize the sustainable growth of the Group and
enhance its corporate value. The company’s performance-based
compensation system is calculated in consideration of the
balance of the short-, medium- and long-term perspectives. As a
part of total compensation, performance-based compensa-
tion is calculated based on the standard amount of payment,
approximately in a 2:1:1 ratio of Monthly compensation:
Bonuses: Stock Compensation-Type Stock Options, respectively.
31
AGC Report 2017
History
With Over 100 Years of History, the AGC Group Aims to Continue
Contributing to Society for Years to Come.
From
1900
Expanding Business Globally
1907
Asahi Glass Company established in Amagasaki,
Hyogo Prefecture, by Toshiya Iwasaki (pictured).
From
1920
Time of Establishment
From
1940
From
1960
From
1980
From
2000
Period of Growth and Expansion
Toward Global Operations
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.
1964
1981
Entry into the flat glass market in Thailand.
Glaverbel S.A. in Belgium acquired. Full-scale
Creation of AGC Group Vision, .
entry in Europe’s flat glass market.
In-house Company system introduced.
1955
Deming Prize received for quickly adopting quality
management.
1972
Indonesia.
Glass production operations commence
in
Full-scale entry of the automotive glass business
in the United States.
1985
1986
Indonesia.
1997
Full-scale entry of the chlor-alkali business in
Entry into Russia’s glass market.
AGC plus management policy implemented.
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 refracto-
ry bricks for melting
furnaces begins.
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.
1961
1966
glycol begins.
Production of float glass begins.
Production of propylene oxide and propylene
AZEC System, a new ion-exchange membrane
Sales of automotive door glass that blocks infra-
electrolyzer, developed.
red rays launched.
1980
1982
1990
1995
Production of fluoropoly-
mer resin for coatings
(LUMIFLON™) begins.
CYTOP™
transparent
amorphous fluoropoly-
mer developed.
Production of glass substrates for TFT-LCDs begins.
automotive door windows sales begin.
UV Verre Premium Cool on™ tempered glass for
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
1917
In-house production of soda ash, a key raw material
for glass, begins in Kitakyushu.
1914-1918
First World War
33
AGC Report 2017
2002
2007
2013
2013
Asia.
2015
2016
Group brand unified as “AGC”
to mark its 100th anniversary.
The Brazil Plant, one of the most environmentally
friendly
factories
in South America starts
operation. Entry into Brazil’s flat glass market.
Regional headquarters established in Singapore
with the aim of business expansion in Southeast
Automotive glass production base established in
Morocco.
Information gathering and marketing bases
established in India and Dubai.
2005
2008
in Beijing.
2011
2011
High-performance Fluon® ETFE FILM used for
various sports venues at the global sports event
Worldwide sales of Dragontrail™ glass for smart-
phones and tablet computers begin.
Supply of HFO-1234yf, a next-generation auto-
mobile refrigerant with a low environmental bur-
2015
den, begins.
Product development of
AsahiGuard™ water and oil
repellants and Aflon™ COP
fluorinated resins begins.
1972
1975
Development of the Flemion™
fluoropolymer ion-exchange
membrane electrolysis method
for manufacturing caustic soda.
Color television broadcasting begins in Japan
Birth of the Internet
Terrestrial digital broadcasting begins in Japan
Tokaido shinkansen bullet train service commenc-
Plaza Accord concluded
Global financial crisis begins
es in Japan and the Olympic Games held in Tokyo
1960
1964
1970
Expo ’70 world’s fair held in Osaka
1973 and 1979
First and second oil crises
1983
1985
1993
1997
European Union established
Kyoto Protocol adopted
2003
2008
2011
2014
The Great East Japan Earthquake and tsunami
disaster in Japan’s Tohoku region
FIFA World Cup held in Brazil
AGC Report 2017 34
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
1925
Deming Prize received for quickly adopting quality
management.
1914
1917
Headquarters moved to Tokyo.
The first export of flat glass to England.
The Asahi Foundation for Chemical Industry
Glass manufacturing subsidiary established in India,
Promotion (now the Asahi Glass Foundation)
demonstrating progress in expanding internation-
established to commemorate our 25th anniversary.
ally ahead of other Japanese companies.
Stocks listed on the Tokyo Stock Exchange.
Asahi Glass Scholarship Foundation established
to commemorate our 50th anniversary.
1933
1937
1928
begins.
1933
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 refracto-
ry bricks for melting
furnaces begins.
1952
1955
1956
1957
1954
begins.
1955
From
1960
From
1980
Period of Growth and Expansion
From
2000
Toward Global Operations
Asahi Glass Company established in Amagasaki,
Shoko Glass Co., Ltd. established in China as
Agreement concluded to export caustic soda
Hyogo Prefecture, by Toshiya Iwasaki (pictured).
Asahi Glass’ first business outside Japan.
electrolysis equipment to Indonesia.
1964
Entry into the flat glass market in Thailand.
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
Indonesia.
in
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 environmentally
friendly
in South America starts
operation. Entry into Brazil’s flat glass market.
factories
2013
Regional headquarters established in Singapore
with the aim of business expansion in Southeast
Asia.
2015
AGC plus management policy implemented.
2016
Automotive glass production base established in
Morocco.
Information gathering and marketing bases
established in India and Dubai.
Production of flat glass by the Fourcault process
Production of double-glazing units PairGlass™
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.
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.
Caustic soda production using the ammonia
Manufacture of glass bulbs for television picture
method begins.
tubes begins.
1966
Production of float glass begins.
1917
In-house production of soda ash, a key raw material
for glass, begins in Kitakyushu.
Production of refractory bricks begins at the Iho Plant.
Production of tempered glass and laminated
1938
1939
glass begins.
1956
Automotive glass business launched on a full
scale to respond to rapidly growing demand.
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.
1914-1918
First World War
33
AGC Report 2017
Great Kanto Earthquake in Japan
Treaty of San Francisco concluded
Beginning of the Great Depression in the United
Television broadcasting begins in Japan
1951
1953
1954-1957
Economic boom in Japan
1923
1929
States
1939-1945
Second World War
1960
Color television broadcasting begins in Japan
1983
Birth of the Internet
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
2015
Supply of HFO-1234yf, a next-generation auto-
mobile refrigerant with a low environmental bur-
den, begins.
2003
Terrestrial digital broadcasting begins in Japan
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 2017 34
Main Communication Tools Used to Reach Each of Our Stakeholders
For customers
(including general consumers)
AGC Report 2017
(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
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.
Scope
•Reporting Period
Fiscal 2016 (Jan.–Dec. 2016)
Some information includes content from both fiscal 2015 and 2017
•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 WEB Articles with this mark have related information on the AGC Asahi Glass website (www.agc.com/english/).
Date of Publication
April 2017 (Last date of publication: April 2016)
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.
AGC Asahi Glass
www.agc.com/english/
1-5-1, Marunouchi, Chiyoda-ku, Tokyo, 100-8405, JAPAN
Corporate Communications & Investor Relations Office,
Corporate Planning Division
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from forest thinning.“Morino
Chonai Kai” (Forest Neighborhood
Association) —Supporting sound
forest management.
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AGC Report 2017