AGC Integrated Report 2022
For the Year Ended December 31, 2021

Reporting Scope (report issued in June 2022)
Reporting Period  
January 1 to December 31, 2021
Reporting Organizations  
AGC Inc. and its 206 consolidated subsidiaries in and 
outside Japan
Principal Expressions and Their Scope
“The AGC Group” refers to the abovementioned 
reporting organizations. “AGC” refers to AGC Inc. on 
a non-consolidated basis.
Reference Framework
In preparing this report, the 
International Integrated 
Reporting Framework advo-
cated by the Value Reporting 
Foundation and the Guidance 
for Collaborative Value Creation 
published by the Ministry of 
Economy, Trade and Industry 
have been used as references.
Contents
04	AGC’s Group Vision
06	The AGC Group’s Value Creation Model
07	Creating Social Value through Products
10	At a Glance
12	Financial and Non-Financial Highlights
14	Lineages of Our Strengths
40	Business Overview
41	Glass Business
49	Electronics Business
52	Chemicals Business
56	Ceramics Business
57	New Business Creation
59	Our Value Chain Mapping
60	Technology and Innovation
66	Human Resources
73	The Environment
80	Corporate Governance
86	Board of Directors, Audit & Supervisory 
Board Members, and Executive Officers
89	Discussion between the Chairperson of 
the Board and the CEO
94	Financial Data
96	External Evaluations
97	The Asahi Glass Foundation
98	Corporate and Stock Information
04 The AGC Group as a Whole
Here, we focus on initiatives that are 
cementing our management foundations.
From their respective standpoints, President & 
CEO Yoshinori Hirai, CFO Shinji Miyaji, and CTO 
Hideyuki Kurata explain the long-term manage-
ment strategy for achieving Vision 2030.
This section comprises a discussion between 
Yasuchika Hasegawa, who served as chairperson 
of the Board of Directors until March 2022, and 
Yoshinori Hirai, president & CEO, as well as 
messages from Hiroyuki Yanagi, the former 
chairperson of the Nominating Committee, and 
Keiko Honda, the former chairperson of the 
Compensation Committee.
18 Management Messages
39
Business Strategies
58
Strategies for Our 
Management Foundations
18	A Message from the President & CEO
25	A Message from the Chief Financial 
Officer
30	A Message from the Chief Technology 
Officer
33	Toward Realizing Vision 2030
38	Process for Identifying Long-Term  
Social Issues (Material Issues)
33
89
18
04
This section provides the basic information 
needed to understand the AGC Group’s 
corporate value enhancement initiatives.
This section gives an overview of each business 
and its strategies.
39
58
The Cover
The cover design expresses our commitment to building a better future for the 
coming generations in accordance with the AGC plus 2.0 Management Policy.
Taking a long-term perspective, we outline our 
progress under the medium-term management 
plan, AGC plus-2023, which is advancing us 
toward realizing Vision 2030.

Main Communication Tools of the AGC Group
Financial Information
Non-Financial Information
AGC Integrated Report 2022 (this report)
Introducing a wide range of corporate policies, business strategies, and activities aimed at enhancing corporate value over the long term
 https://www.agc.com/en/company/agc_report/
The AGC Website
Providing a broad range of in-depth, timely information on the AGC Group
 https://www.agc.com/en/
Financial Review 2021 (English version only)
Reporting on financial matters, including business overviews and 
consolidated financial statements
 https://www.agc.com/en/ir/library/financial/
AGC Sustainability Data Book 2022
Reporting on non-financial data and policies for various initiatives 
aimed at achieving sustainability (publication scheduled for 
August 2022)
 https://www.agc.com/en/csr/book/index.html#ac02
Shareholder and Investor Information
Distributing detailed, timely information on the AGC Group to 
investors, with a focus on financial information
 https://www.agc.com/en/ir/index.html
Sustainability Information
Reporting on non-financial data and policies for various initiatives 
aimed at achieving sustainability
 https://www.agc.com/en/csr/
Corporate
Documents 
(PDF)
Website
Financial Review 2021
For the Year Ended December 31, 2021
CONTENTS
Inside Cover   Consolidated Eleven-Year Summary
02 Management’s Discussion and Analysis
12 1 Financial Statements (IFRS) 
 
Consolidated Financial Statements (IFRS)
12 i) Consolidated Statements of Financial Position
14 ii) Consolidated Statements of Profit or Loss and 
 
 
Consolidated Statements of Comprehensive Income 
 
 
(Consolidated Statements of Profit or Loss)
15  
(Consolidated Statements of Comprehensive Income)
16 iii) Consolidated Statements of Changes in Equity
18 iv) Consolidated Statements of Cash Flows 
19 2 Notes to Consolidated Financial Statements
66 Independent Auditor’s Report
AGC Sustainability  
Data Book 
2022
AGCサステナビリティデータブック2022
（2021年12月期）

In accordance with its
vision, the AGC Group is enhancing corporate value 
on a sustainable basis over the long term.
	
With investors and a wide range of other stakeholders as its target readers, AGC Integrated 
Report 2022 explains the management approach and specific measures that the Group is taking 
to enhance corporate value.
	
Along with messages from the management team, the report provides detailed explanations of 
the main strategies for realizing the long-term management strategy, Vision 2030, as well as infor-
mation regarding progress in relation to the medium-term management plan, AGC plus-2023, 
which we launched in February 2021. We sincerely hope that this report will deepen ­readers’ under-
standing of the far-sighted approach to business management that has always been our hallmark. 
This report describes the AGC Group’s initiatives for the 
long-term, sustainable enhancement of corporate value.
Hideyuki Kurata
Representative Director, Executive Vice President, CTO
Shinji Miyaji
Representative Director, 
Senior Executive Vice President, 
CFO, CCO
Yoshinori Hirai
Representative Director, President & CEO
The AGC Group’s Management Policy AGC plus 2.0
Based on its AGC plus 2.0 Management Policy,  
the AGC Group will realize sustainable growth by providing 
additional value to all stakeholders.
AGC plus 2.0
• 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;
• Increasing the Group’s corporate value for investors, and
• Building a better future for the coming generations

Anticipate and envision the future,
Have perspectives beyond our own fields 
of expertise, and
Pursue innovations, not becoming 
complacent with the status quo.
By realizing its burgeoning potential, the entire Group 
will continue providing the world with value.
AGC’s Group Vision
calls for the following mindset.
The structure and three elements of
Our Mission
Setting out the value that the AGC Group 
should offer as well as the Group’s purpose 
Our Shared Values
The key ideas that are shared by all AGC Group 
employees and which inform all of their actions
Our Spirit
Our fundamental mindset, which has been 
passed down from generation to generation 
and put into practice by all of our employees
is the AGC Group’s corporate philosophy 
underpinning all of its business and social activities. When embarking 
on integrated global management in April 2002, the Group formu-
lated this vision to ensure that its employees around the world would 
continue to evolve as one.
04
The AGC Group as a Whole

Toshiya Iwasaki, who founded Asahi Glass Company in 1907, summed up his mindset in those 
early days with the motto, “Never take the easy way out, but confront difficulties.” Much in 
evidence when our predecessors subsequently took on the ambitious goal of manufacturing 
flat glass domestically, this mindset has been passed down through the generations to the 
present day and remains the driver of all of our business activities.
Our Spirit
“Never take the easy way out, 
but confront difficulties.”
Our Shared Values
Innovation & Operational Excellence   Diversity   Environment   Integrity
Innovation & Operational Excellence 
•	 We will seek innovations in technology, products, and 
services beyond conventional concepts and frameworks.
•	 We will create value directed at our current and potential 
customer needs, accounting for changes in the business 
environment and social and market evolution.
•	 We will continuously improve all aspects of our operations, 
striving to achieve benchmark performance.
Diversity 
•	 We will respect the diversity of individuals of varied 
­capabilities and personalities.
•	 We will respect cultural diversity in terms of race, ethnicity, 
religion, language, and nationality.
•	 We will respect different perspectives and opinions 
at all times.
Environment 
•	 We will contribute to the creation of a sustainable society in 
harmony with nature as a successful and responsible 
global citizen.
•	 We will strive to ensure and further improve occupational 
health and safety in our working environment.
Integrity 
•	 We will build open and fair relationships with all of our 
stakeholders based on the highest ethical standards.
•	 We will comply with all applicable laws and regulations.
•	 We will fulfill our contractual and legal responsibilities to 
achieve customer satisfaction and trust.
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, trust-based 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 Mission
AGC, an Everyday Essential Part of Our World
05
The AGC Group as a Whole

AGC’s Group Vision
In accordance with its vision
, 
the AGC Group conducts business management from 
a long-term perspective. Utilizing the five strengths 
cultivated since our founding, we continuously create 
economic and social value, help make ever-greater 
achievements possible, and bring bolder ideas to life 
by working with others to combine knowledge and 
advanced technology and by implementing measures 
based on the AGC Social Issue Resolution Cycle.
The AGC Group’s Value Creation Model
 Political 
trends
 Economic 
conditions
 Technological 
innovation
 Social issues
 Global 
environment
Value Creation
The five types of social 
value the AGC Group 
wants to create
Economic value
Long-Term Social Issues 
(Material Issues)
Major Opportunities
Major Risks
Stably 
realizing
ROE of 
10% or 
higher
External 
Environment
 Addressing 
climate 
change
 Using 
resources 
effectively
 Developing social 
infrastructure
 Achieving safe, 
comfortable mobility
 Addressing food 
crises
 Building an info-
oriented, IoT-society
 Facilitating better 
health and longevity
 Creating socially and 
environmentally 
conscious supply 
chains
 Ensuring fair and 
equal employment 
and workplace safety
 Considering 
relationships with 
local communities 
and the environment
STEP
3
AGC Social Issue Resolution Cycle
STEP
1
STEP
4
STEP
2
Mutually inte-
grate customer 
knowledge and 
technologies with 
our own, seeking 
to resolve next-
generation needs 
and social issues
Research needs 
and social issues, 
focusing on the 
future
Build stable, solid sources of 
­earnings and invest management 
resources in growth engines
Develop unique 
materials and solutions 
that utilize Group 
technologies
Five Strengths 
Cultivated Since 
Our Founding
Differentiated materials 
and technologies 
A corporate culture that 
encourages ambitious 
initiatives
Production 
technology and 
process development 
capabilities
Globally integrated 
management that unites 
diverse personnel
Relationships with and trust 
of clients throughout 
society and across a broad 
range of industries
 
 P.17
 
 P.38
Management foundations 
supporting continuous 
evolution
 
 P.58
 
 P.36
 
 P.4
The above phrase encapsulates the mindset 
underpinning all of our business and social activities.
We always anticipate and envision the future, have perspectives beyond 
our own fields of expertise, and pursue innovations without 
being satisfied with the status quo.
Contributing to the 
realization of safe and 
comfortable urban 
infrastructure
Contributing to the 
realization of safe and 
healthy lifestyles
Contributing to the 
maintenance 
of a healthy 
and secure society
Contributing to the 
creation of fair 
and safe workplaces
Contributing to the 
realization of a 
sustainable global 
environment
06
The AGC Group as a Whole

Creating Social Value through Products
Social Value the AGC Group Wants to Create
Contributing to the realization of 
a sustainable global environment
Contributing to the realization 
of safe and comfortable urban 
infrastructure
Contributing to the realization 
of safe and healthy lifestyles
For information on the AGC Group’s products, please visit the website below.
 https://www.agc.com/en/products/index.html
The Environmental Field
Our products that help create environment-
friendly smart cities include glass for buildings 
and homes, solar power generation mirror 
glass, and green refrigerants.
Contributing to the realization 
of a sustainable global environment
With businesses in an extensive range of fields, the AGC Group supports the daily lives 
of people worldwide in a variety of ways. From among the five types of social value the 
Group wants to create through its array of products, this section highlights initiatives 
aimed at contributing to the realization of a sustainable global environment, contribut-
ing to the realization of safe and comfortable urban infrastructure, and contributing to 
the realization of safe and healthy lifestyles.
 Glass 
 Electronics 
 Chemicals 
 Ceramics and other businesses
 Refractories for  
waste-to-energy plants
 Eco-glass for homes
 Glass ceramics substrates for high-power LED lighting
 Fuel cell-related materials
 Refrigerants for automobile air-conditioning
 Protective fluoropolymer resin films 
for photovoltaic devices
 Fluoropolymer 
resins for coatings
 Fluoroelastomer rubber 
for oil-drilling equipment
 Transparent conductive oxides 
substrates for ­photovoltaic device
07
The AGC Group as a Whole

Creating Social Value through Products
Contributing to the realization 
of safe and comfortable urban 
infrastructure
The Mobility Field
We provide a host of different products that are 
essential to transportation equipment and which 
contribute to the realization of next-generation 
mobility that is safe and comfortable, including 
lightweight, high-performance window glass and 
cover glass for car-mounted displays.
The Architectural and Social 
Infrastructure Fields
We offer architectural materials that 
help create reassuring, safe, and com-
fortable spaces as well as industrial 
materials that underpin social 
infrastructure.
The Electronics Field
We supply materials and components 
for displays and electronic equipment 
used in a variety of business situations 
as well as materials and components for 
semiconductors and communications 
equipment—which will be indispensable 
in the coming Internet of Things (IoT) 
and AI era as well as essential for the 
practical realization of 5G.
 Automotive glass
 Cover glass for car-mounted displays
 Electronic materials for advanced 
driver-assistance systems
 Materials for LED and OLED lighting
 Polyurethane raw materials for car seats
 Fluoropolymer resins and rubber for 
automotive components
 Truck glass
 Refrigerants for automobile 
air-conditioning
 Construction 
machinery glass
 Bus glass
 Railway glass
 Fluoropolymer resins for 
coatings
 Fluoropolymer resins for 
components
 Photovoltaic glass for buildings
 Glass for office buildings
 Glass antennas for base stations
 Anti-reflective architectural glass
 Laminated safety glass for public facilities
 Glass materials and compo-
nents for optical equipment
 Glass substrates for displays
 Glass materials and components for 
storage devices
 Fluoropolymer resins for electronic 
substrate materials
 Optical materials 
and components 
for digital cameras
 Glass substrates for displays
 Cover glass for electronic devices
 Glass materials and components for 
optical equipment
 Fluoropolymer resins for electronic 
substrate materials
 Glass substrates for displays
 Copper-clad laminates for base stations
 Fluoropolymer 
resins for coatings
 Fluoropolymer films for membrane structures
 Materials for LED and OLED lighting
 Display-integrated mirrors
 Sodium hypochlorite 
disinfectant for 
drinking water
 Polyvinyl chloride 
for water pipes
 Glass 
 Electronics 
 Chemicals 
 Ceramics and other businesses
08
The AGC Group as a Whole

Glass 
 Electronics 
 Chemicals 
 Ceramics and other businesses
Creating Social Value through Products
Contributing to the realization 
of safe and healthy lifestyles
The Consumer Products Field
We market products that bring comfort and 
convenience to daily life as well as many of the 
materials vital to their creation.
The Life Science Field
We provide materials and services for 
pharmaceuticals and agrochemicals 
that cater to demand resulting from 
population growth, food shortages, 
longer life expectancy, and increas-
ingly sophisticated medical needs.
 Caustic soda for hand soap
 Fillers for cosmetics
 Washstand mirrors
 Glass for interiors
 Caustic soda for dishwashing detergent
 Sodium bicarbonate for 
baking powder
 Heat-resistant glass tableware
 Bulking agents for liquid chromatography
 Laboratory glassware
 Tissue culture products
 Biopharmaceutical active 
ingredients
 Small-molecule pharmaceutical 
substances and intermediates
 Sodium bicarbonate 
infusion solution for 
artificial dialysis
 Active ingredients for eye drops
 Agrochemical 
intermediates and 
active ingredients
 Fluoropolymer resin films for greenhouses
09
The AGC Group as a Whole

At a Glance
The AGC Group: Providing  
a Broad Range of Materials and 
Solutions Worldwide
The AGC Group has established global business foundations spanning Japan, Asia, Europe, and the Americas. 
The Group’s Glass, Electronics, Chemicals, and Ceramics businesses as well as other businesses create new 
value by leveraging a diverse range of world-class materials, technologies, advanced production technologies, 
and a broad customer base. These strengths have been cultivated during a history that stretches back more 
than 110 years.
Description of Businesses
(Year ended December 31, 2021)
The AGC Group
Net sales  ¥1,697.4 billion
Operating profit  ¥206.2 billion
Group employees  Approx. 56,000
Breakdown of 
net sales by business
 Glass Business 42%
 Electronics Business 17%
 Chemicals Business 36%
 Ceramics and other businesses 5%
Glass Business
Net sales
¥734.3 billion
Operating profit
¥27.3 billion
Architectural Glass
Net sales  ¥381.1 billion
Automotive Glass
Net sales  ¥351.1 billion
Electronics Business
Net sales
¥305.0 billion
Operating profit
¥36.8 billion
Display
Net sales  ¥182.1 billion
Electronic Materials
Net sales  ¥121.0 billion
Chemicals Business
Net sales
¥630.8 billion
Operating profit ¥138.8 billion
Chlor-Alkali and Urethane
Net sales  ¥390.4 billion
Fluorochemicals & 
Specialty Chemicals
Net sales  ¥123.9 billion
Life Science
Net sales  ¥115.2 billion
Ceramics and other businesses
Net sales
¥79.4 billion
Operating profit
¥3.5 billion
Notes	1. Sub-business net sales utilize net sales to external customers.
	
2. As net sales and operating profit by business are before the deduction of eliminations, the sum of net sales by business does not equal Companywide net sales,  
and the sum of operating profit by segment does not equal Companywide operating profit.
	
3. Due to corporate reorganization, cover glass for car-mounted displays, which was previously included in the Electronics Business, 
was integrated into the Glass Business in fiscal 2022.
10
The AGC Group as a Whole

Global Expansion
(Year ended December 31, 2021)
Japan/Asia
Europe
The Americas
Net sales
¥1,124.4 billion
¥398.0 billion
¥175.0 billion
Operating profit
¥198.6 billion
¥37.5 billion
¥10.0 billion
Group employees
Approx. 34,500
Approx. 17,000
Approx. 4,500
Number of manufacturing sites
59
24 (including Africa)
10
Architectural Glass
Automotive Glass
Display
Electronic Materials
Chlor-Alkali and Urethane
Fluorochemicals & Specialty Chemicals
Life Science
Ceramics
Breakdown of 
net sales by region
 Japan/Asia 66%
 Europe 24%
 The Americas 10%
Operating businesses in more 
than 30 countries and regions, 
including Japan, Asia, Europe, 
and the Americas
At a Glance
Note: As net sales and operating profit (loss) by region are before the deduction of eliminations and common regional expenses, the sum of net sales by region does not equal Companywide net sales, 
and the sum of operating profit (loss) by region does not equal Companywide operating profit (loss).
11
The AGC Group as a Whole

Financial and Non-Financial Highlights
Net Sales 
(Billions of yen)
 

(FY)
Profit for the Year Attributable to Owners of the Parent 
and ROE
(Billions of yen)
(%)

(FY)
Operating Profit 
(Billions of yen)

(FY)
 Profit for the year attributable to owners of the parent (left axis) 
 ROE (right axis)
1,412.3
1,518.0
1,463.5
1,522.9
2021
2017
2018
2019
2020
0
450
900
1,350
1,800
32.7
44.4
69.2
89.6
2021
2017
2018
2019
2020
2.9
3.9
7.7
6.1
0
4.0
8.0
 12.0
16.0
0
 35
 70
105
140
Total Assets and Debt-to-Equity Ratio 
(Billions of yen)
(Times)

(FYE)
 Total assets (left axis) 
 Debt-to-equity ratio (right axis)
2,534.5
2,335.4
2,228.6
2,235.8
0.63
0.47
0.43
0.38
0
0.2
0.4
0.6
0.8
0
700
1,400
2,100
2,800
2021
2017
2018
2019
2020
75.8
101.6
119.6
120.6
2021
2017
2018
2019
2020
0
55
110
165
220
 Net sales (left axis) 
 Operating profit (right axis)
0
70
140
210
280
202.2
165.4
104.4
126.2
44.4
33.1
24.4
14.2
0
20
40
60
80
2021
2017
2018
2019
2020
Net Sales and Operating Profit of Strategic Businesses 
(Billions of yen)
(Billions of yen)

(FY)
Cash Dividends per Share and Consolidated Dividend 
Payout Ratio
(Yen)
(%)

(FY)
 Cash dividends per share (left axis) 
 Consolidated dividend payout ratio (right axis)
120
120
105
115
81.2
59.7
28.8
34.8
0
25
50
75
100
0
60
120
180
240
2021
2017
2018
2019
2020
In fiscal 2021, due to higher product selling prices and the 
growth of Strategic Businesses, net sales increased ¥285.1 billion 
year on year, to a record high of ¥1,697.4 billion.
Fiscal 2021 saw year-on-year increases in both the net sales and 
operating profit of Strategic Businesses thanks to operational 
expansion of the Electronics and Life Science businesses.
In fiscal 2021, operating profit reached its second highest level in 
AGC’s history, rising ¥130.4 billion year on year, to ¥206.2 ­billion. 
This favorable performance reflected net sales growth and manu-
facturing cost reductions, which outweighed higher raw material 
and fuel prices, increased depreciation associated with the start-
up of new facilities, and upward pressure on manufacturing costs 
stemming from foreign exchange rates.
As of December 31, 2021, the debt-to-equity ratio was 0.41, a 
significant improvement compared with its level at December 31, 
2020. This improvement was attributable to the repayment of 
interest-bearing debt accumulated during the COVID-19 pandemic.
In fiscal 2021, profit for the year attributable to owners of the 
parent grew ¥91.1 billion year on year, to ¥123.8 billion, a new 
record.
AGC paid an annual dividend of ¥210 per share in fiscal 2021. 
The annual dividend comprised an ordinary dividend of ¥160 per 
share and a special dividend of ¥50 per share, which reflected a 
one-time gain on the transfer of the Architectural Glass Business 
in North America.
1,697.4
206.2
2,666.0
0.41
210
123.8
257.9
53.8
10.2
37.6
12
The AGC Group as a Whole

Financial and Non-Financial Highlights
Percentage of Female Managers (Division Manager or 
Higher)* (AGC, Non-Consolidated Basis)
(%)
* As of December 31 of each year (excluding employees aged 60 and above)
 Japan 
 Overseas
3.6
3.3
3.5
2021
2017
2018
2019
2020
2.7
0
2.0
4.0
6.0
8.0
Research and Development Expenses 
(Millions of yen)
 

(FY)
Patents and Utility Models 
(Number of patents and utility models)
46,444
45,755
47,450
2021
2017
2018
2019
2020
43,912
0
12,500
25,000
37,500
50,000
4,479
3,892
4,126
2021
2017
2018
2019
2020
3,997
2,494
2,473
2,426
2,506
0
2,000
4,000
6,000
8,000
Employee Engagement Survey 
(Number of people)
(%)
78
81
82
84
2016
2019
2007
2010
2013
0
25
50
75
100
0
15,000
30,000
45,000
60,000
40,100
39,055
40,321
43,546
Number of Occupational Accidents 
(Persons)
(Frequency)
0.99
0.98
2021
2019
2020
1
0
0
1
2
3
4
0
0.25
0.5
0.75
1
0.72
0.70
0.75
0.80
0.68
2021
2030
2017
2018
2019
2020
5,399
5,074
5,370
5,332
5,271
6,165
4,634
6,429
4,621
6,986
0
0.2
0.4
0.6
0.8
0
3,000
6,000
9,000
12,000
GHG Emissions (Scope 1 and Scope 2) 
(1,000 t-CO2)
(1,000 t-CO2/¥100 million)
Our goal is to realize net-zero carbon emissions by 2050. By 
2030, we aim to achieve reductions compared with 2019 levels 
of 30.0% in GHG emissions and 50.0% in GHG emissions per 
unit of sales.
An employee engagement survey targeting all AGC Group 
employees is conducted every three years. Based on the survey 
results, required measures are determined and implemented in 
each division and workplace, with the effects of these measures 
being confirmed by subsequent surveys.
The AGC Group promotes health and safety activities based on 
its policy of “No Production without Safety.”
AGC will continue to refine its range of unparalleled core tech-
nologies, which span the fields of glass, electronics, chemicals, 
and ceramics.
Through its advanced strategy for intellectual properties, AGC 
will build competitive advantages and take on global competition.
To provide society with value through the realization of diversity 
that empowers talented personnel regardless of gender, AGC 
aims for women to account for 30.0% of its directors and Audit 
& Supervisory Board members and 20.0% of its executive officers 
by 2030 on a non-consolidated basis.
0
3.9
88
49,444
47,533
4,558
2,487
0.77
8,005
0.38
 Scope 1 (left axis) 
 Scope 2 (left axis) 
 Emissions intensity (right axis)
(Target)
 Number of fatalities (left axis) 
 Frequency of accidents requiring leave* (right axis)
* Frequency of accidents requiring leave = Fatalities and injuries due to work-related 
accidents (leave of one or more days) × 1,000,000 ÷ Total working hours
 Employees targeted by the survey (left axis) 
 Response percentage (right axis)
13
The AGC Group as a Whole

Lineages of Our Strengths
In its more than 110 years of history, the AGC Group has adapted to changes in society by partnering with customers to take on 
ambitious technological innovations and by foraying into new business fields and regions. The strengths we have cultivated through 
this history are relationships with and the trust of clients throughout society and across a broad range of industries, differentiated 
materials and technologies, production technology and process development capabilities, globally integrated management that unites 
diverse personnel, and a corporate culture that encourages ambitious initiatives. This section traces the lineages of these strengths.
For information on the value the AGC Group 
has provided in each era and its ambitions for 
the future, please visit the website below.
 https://www.agc.com/en/company/history/index.html
1900
1950
1960
1970
Social Developments
Lineages of Our Products and Technologies
Lineage of Our Globalization
 Glass 
 Electronics 
 Chemicals 
 Ceramics
Advent of the television age
Development of social infrastructure
Emergence of environmental problems
Rapid construction of a modern nation
Advancement of motorization
1916  Commenced in-house production of refractory bricks for glass furnaces
1939  Began production of refractory bricks at the Iho Plant in Japan
1960s   Began full-scale production of monolithic refractories
1955  Began production of glass bulbs for television cathode-ray tubes
1917  Started in-house production of soda ash, a key raw material for flat glass, in 
Kitakyushu, Japan
1933  Began use of the ammonia method to produce caustic soda
1961  Started production of propylene oxide and propylene glycol
1972  Developed AsahiGuard™ water and oil repellents and Aflon™ COP fluorinated resins
1975  Developed the FLEMION™ fluoropolymer ion-exchange membrane electrolysis method 
for manufacturing caustic soda
1909  Began the first mass production of flat glass in Japan, using a Belgian technology 
based on hand-blown cylinders
1928  Commenced use of the Fourcault process to produce flat glass
1938  Began production of tempered glass and laminated glass
1954  Started production of PairGlass™ double-glazing units
1956  Launched the automotive glass business in earnest to meet rapidly growing demand
1966  Began utilization of the float method, a new technology, to produce large, flat sheets 
of glass (float glass) 
Commenced sales of heat-reflective glass in Japan
1970s   Began development of automotive glass antennas
1907  Established Asahi Glass Company (now AGC 
Inc.) in Amagasaki, Hyogo Prefecture, Japan
1914  Exported flat glass to the United Kingdom 
for the first time
1925  Established Shoko Glass Co., Ltd., in China
1952  Concluded an agreement for the export of 
caustic soda electrolysis equipment to 
Indonesia
1956  Founded a glass manufacturing subsidiary in 
India, thereby developing overseas busi-
nesses ahead of other Japanese companies
1964  Entered the flat glass market in Thailand
1972  Began flat glass operations in Indonesia
Glass Bulbs for Television Cathode-Ray Tubes
By enhancing product performance and 
increasing production capacity, we helped 
advance video technology as well as popularize 
black-and-white and 
color televisions.
Architectural Glass
Amid a construction 
boom, AGC became the 
first company in Japan to 
successfully manufacture 
flat glass domestically, 
thereby supporting Japan’s 
rapid transformation and 
modernization.
Automotive Glass Business
AGC responded to 
burgeoning demand for 
automobiles by establish-
ing a mass production 
system for automotive 
glass and developing 
production technologies.
Development of the FLEMION™ Ion-
Exchange Membrane Electrolysis Method 
for Caustic Soda Production
The FLEMION™ ion-exchange membrane 
electrolysis method does not use harmful 
substances and achieves significant energy 
savings. We have not only 
introduced this technol-
ogy to in-house busi-
nesses but also offered it 
to peers who are taking 
steps to prevent environ-
mental pollution.
14
The AGC Group as a Whole

1990
2000
2010
Spread of LCD TVs
Development of IT
Development of biomedicine
Advent of the IoT era
Popularization of smartphones
1997  Entered Russia’s flat glass market
2010  Established in China the AGC Group Regional 
Headquarters for China
2007  Marked centennial by making “AGC” the 
Group’s unified brand
2005  Established a site for the production of LCD 
glass substrates in South Korea
2000  Established a site for the production of LCD 
glass substrates in Taiwan
2011  Established a site for the production of LCD 
glass substrates in China
2013  Entered Brazil’s flat glass market
Established the AGC Group Regional Headquarters 
for Southeast Asia & Oceania in Singapore
2016  Founded bases for information gathering and 
market research and analysis in India and Dubai
Established an automotive glass production 
site in Morocco
2018  Consolidated bioscience businesses in Japan, the 
United States, and Europe and began integrated 
operations under AGC Biologics S.p.A.
Changed corporate name to AGC Inc.
2019  Built a tripolar system for the development of 
automotive glass antennas
2021  Transferred the Architectural Glass Business in 
North America
2017  Acquired Vinythai Public Co., Ltd., of Thailand
1992  Started production of glass filters that absorb infrared rays in cameras
1995  Began production of glass substrates for TFT-LCDs
1997  Commenced production of glass for DVD/CD optical pickups
2003  Began production of CMP slurry for semiconductors 
Participated in a consortium for photomask blanks for EUV lithography
1990  Developed CYTOP™ transparent amorphous fluoropolymer
1991  Started production of alternative fluorocarbon Asahiklin AK-225
2008  Saw the use of high-performance Fluon® ETFE FILM for international sports venues in 
Beijing
2000  Began contract manufacturing of biopharmaceuticals
2005  Began sales of automotive door glass that blocks infrared rays
2011  Began worldwide sales of Dragontrail™ glass for smartphones and tablet computers
2017  Commenced production of photomask blanks for EUV lithography
2019  Entered the extremely low-loss copper-clad laminates business by acquiring certain 
businesses from the U.S. companies Park Electrochemical Corp. and Taconic
2020  Acquired Molecular Medicine S.p.A. of Italy and began a CDMO business in the field 
of gene and cell therapy
2017  Acquired leading biopharmaceutical CDMO CMC Biologics
2015  Began the supply of HFO-1234yf, a next-generation automotive refrigerant, with a 
low environmental burden
2011  Began sales of UV Verre Premium Cool on™ tempered glass for automotive doors
2013  Commenced production of cover glass for car-mounted displays
2014  Began sales of smart-glazing glass Wonderlite™
2015  Initiated sales of UV Verre Premium Privashield™ automotive glass that cuts 99.0% of 
UV rays in all directions
1980
Global warming
1980  Commenced sales of insulating glass in Japan
1988  Began sales of Low-E insulating double-glazing glass in Japan
1982  Developed the high-quality fused cast refractory ZB-X950
1980s  Began production of a glass delay line for VHS deck playback
1985  Started production of synthetic fused silica glass
1980  Developed a new ion-exchange membrane electrolyzer, the AZEC System
1980s  Began the contract manufacturing of fluorine-containing pharmaceutical intermediates
1982  Commenced production of LUMIFLON™ fluoropolymer resin for coatings
1981  Acquired Glaverbel S.A. of Belgium and 
entered Europe’s flat glass market in earnest
1985  Entered the automotive glass business in the 
United States in earnest
1986  Entered the chlor-alkali business in Indonesia 
in earnest
Alternative Fluorocarbon Asahiklin AK-225
As fluorocarbon regulations became stricter, 
Asahiklin AK-225 attracted attention as the world’s 
first alternative fluorocar-
bon. This product 
received the 1994 U.S. 
Environmental Protection 
Agency Stratospheric 
Ozone Protection Award.
Biopharmaceutical Contract Manufacturing
Having pioneered the contract 
manufacturing of the active 
ingredients and intermediates of 
small-molecule synthetic 
pharmaceuticals and agrochemi-
cals, AGC has also launched a 
similar business model for 
biopharmaceuticals. Through these products, we are 
helping realize a healthy, long-lived society.
EUV Lithography Photomask Blanks
AGC is contributing to the 
miniaturization of semiconduc-
tor circuit patterns as the world’s 
only manufacturer of EUV 
lithography photomask blanks 
with a lineup of vertically 
integrated technologies that 
extends from glass materials technologies through to 
polishing and film deposition technologies.
Glass for TFT-LCDs
In catering to the rapid growth 
in demand for flat-screen 
televisions since 2000, AGC has 
improved production technolo-
gies and established a mass 
production system for thin-film-
transistor (TFT) liquid crystal display (LCD) glass.
Dragontrail™ Glass for Smartphones and Tablet 
Computers
Created through the integrated application of multiple 
technologies, our chemically tempered special glass 
Dragontrail™ is used for smart-
phones, tablet computers, and 
car-mounted displays and makes 
day-to-day life more comfortable 
and convenient.
Lineages of Our Strengths
15
The AGC Group as a Whole

Lineages of Our Strengths
Building Global Capabilities to Meet 
Global Demand
The AGC Group launched overseas business expansion ahead of 
other Japanese companies with the establishment of a subsidiary 
in India in 1956. Subsequently, we established subsidiaries in 
Thailand and Indonesia to increase our presence in Asia. Our next 
step was to establish and grow businesses in Europe and North 
America. As part of these efforts, AGC acquired the Belgian 
company Glaverbel S.A. (now AGC Glass Europe S.A.) in 1981. 
From the 1990s onward, the Group further advanced its global 
capabilities by entering emerging countries, such as Mexico 
and Vietnam. In 2002, we formulated AGC’s Group Vision  
“Look Beyond”. In the same year, we began operating an 
integrated global management system in earnest by introducing 
a global in-house company system and delegating significant 
authority to in-house companies while concentrating cross-divi-
sional functions in corporate divisions. In conjunction with these 
initiatives, we clarified the roles of the president & CEO, the chief 
financial officer, and the chief technology officer and instituted a 
management system centered on these three senior officers. 
Further, on the occasion of its centennial and with a view to 
accelerating its global growth strategy, the Group made “AGC” 
its unified brand in 2007. Since 2010, we have established oper-
ations in Brazil, Morocco, and other countries. Also, we are con-
tinuing to advance the global capabilities of our businesses. As 
an example of these efforts, in 2018 the Group consolidated 
bioscience businesses in Japan, the United States, and Europe to 
enable the launch of integrated operations under the manage-
ment of AGC Biologics S.p.A.
Utilizing the Flat Glass Business to Extend 
Our Business Domain
After our foundation, we followed the successful production of 
flat glass in Japan by domestically manufacturing refractory bricks 
for glass furnaces in 1916. As the outbreak of World War I had 
made it difficult to import soda ash, which is a raw material for 
flat glass, we developed our own method of manufacturing the 
material in 1917. Thus, we established the basis for the stable 
production of flat glass. Moreover, rather than only using the 
refractory bricks and soda ash in-house, we commercialized them 
to establish businesses that became the foundations of our cur-
rent Ceramics and Chemicals businesses. Further, by utilizing the 
advanced technologies for materials, processing, surface treat-
ment, and forming that it had developed through the manufac-
ture of glass, ceramics, and chemicals, the Group launched the 
Electronic Materials Business. In this way, using its founding flat 
glass business as a starting point, the AGC Group has unflag-
gingly taken on bold initiatives to extend its business domain. 
This series of ambitious ventures has created a cycle whereby we 
develop ties with customers in a wide range of industries and 
societies, and these ties then enable us to extend our business 
domain even further.
Developing Differentiated Materials and 
Technologies That Cater to Evolving Needs
With the emergence of various technological innovations, 
­society’s needs have changed. The AGC Group has catered to 
these evolving needs by developing differentiated materials and 
technologies. A good example of our adaptability is the response 
to Japan’s rapid motorization in the 1960s. Symbolizing the 
dawn of the popular car era, Toyota Motor Corporation’s first-
generation Corolla shipped more than one million units. At the 
time, only the Group’s Kawasaki Plant, which was the first in the 
industry to introduce gas furnaces, was able to produce the side 
glass (bending tempered glass) required for the Corolla’s design. 
At a stroke, competence in this regard increased the Group’s 
presence in the automotive glass industry. Further, technological 
innovations can also be a threat to materials manufacturers. For 
example, technological innovations accompanying the evolution 
of televisions from black and white to color and from cathode-
ray tubes to liquid crystal displays as well as the birth of smart-
phones have greatly changed the requirements for display-related 
materials and components, making long-established materials 
and technologies obsolete. By overcoming such threats through 
the development of new materials and technologies, the AGC 
Group has secured one of the largest shares of the global 
­display-related market.
Social Developments
Lineages of Our Products and Technologies
Lineage of Our Globalization
16
The AGC Group as a Whole

Lineages of Our Strengths
Pursuing Further Growth in Both Core and Strategic Businesses
In 2016, the AGC Group set out its long-term management strategy Vision 2025, calling for 
further growth based on Core and Strategic Businesses. Core Businesses are based on existing 
technologies, products, and services—such as glass, chemicals, displays, and ceramics—and 
provide a stable long-term profit base. Meanwhile, Strategic Businesses act as growth engines 
by taking on the challenge of creating new technologies, products, and services in the target 
fields of mobility, electronics, and life science. For example, the Group launched its efforts in 
the life science field in the 1980s when the Chemicals Business applied fluorination technology 
in the contract manufacturing of the active ingredients and intermediates of small-molecule 
synthetic pharmaceuticals and agrochemicals. At present, we are achieving greater-than-
expected business growth as a CDMO (contract development and manufacturing organization) 
not only for small-molecule synthetic pharmaceuticals but also for biopharmaceuticals, which 
are significantly increasing their presence in the global pharmaceuticals market. Moreover, 
based on the new long-term management strategy Vision 2030, we have already begun bold 
ventures in new fields, such as gene therapy, regenerative medicine, and next-generation 
antibody pharmaceuticals.
Examples of Products and Services
Mobility
• Cover glass for car-mounted displays
• Fluorine-based materials for fuel cells
• 5G-compatible glass antennas
Electronics
• Semiconductor-related materials
• Optoelectronic materials
• Components for next-generation high-speed communications
• Fluorinated products for electronics
Life Science
• Synthetic pharmaceutical and agrochemical CDMOs
• Biopharmaceutical CDMOs
Relationships with and trust of 
clients throughout society and 
across a broad range of industries
Differentiated materials and 
technologies
Production technology and ­process 
development capabilities
Globally integrated management 
that unites diverse personnel
A corporate culture that  
­encourages ambitious initiatives
By always taking a long-term view of the likely changes in society, markets, and technologies and by developing materials and technologies in 
anticipation of customer needs, the AGC Group has been able to resolve customers’ product issues and create new value. Thanks to this 
approach and the wide availability of our materials and technologies, customers continue looking to us for solutions—enabling us to create even 
more value.
Since our founding, we have extended our business domain to include an increasingly broad range of industries. Furthermore, we have used the 
contacts made in these industries to continuously create new applications that match market priorities. In this way, we have built unshakable 
relationships of trust with our customers. Going forward, we will use these relationships to realize collaboration with the leaders of each industry, 
thereby providing new value.
In all of our businesses, we place importance on developing production technologies and facilities in conjunction with product development. 
With production technology and engineering capabilities honed over many years serving as a base, we will accelerate digital transformation to 
improve our production capabilities even further.
Since our earliest days, we have proactively expanded businesses overseas. In tandem with these efforts, we have garnered capabilities for 
globally integrated management. Furthermore, the international character of our businesses has created a corporate culture of “cross-fertilization” 
in which self-confident personnel intermingle, and this culture has become a source of competitive strength. By preserving our corporate culture 
as the foundation of value creation, we will continue to further evolve globally integrated management.
An openness that allows many different personnel to take on challenges without fearing failure is central to our founding spirit. Having become 
deeply rooted in our corporate culture, this openness has driven the growth of our organization and businesses. All employees of the AGC 
Group will drive its sustained growth by inheriting and preserving a corporate culture that encourages ambitious initiatives.
Bold Initiatives 
for Sustained 
Growth and 
Development
Five Strengths 
Cultivated Since 
Our Founding
17
The AGC Group as a Whole

A Message from the President & CEO
Beginning the Second Phase of Corporate 
Transformation
Upon becoming president & CEO, I said to AGC Group employees that we 
were entering the second phase of our corporate transformation. We first 
started the transformation journey in 2016. To explain how these initiatives 
came about, let me go back to the past and explain the background.
	
Until about 30 years ago, our growth driver was architectural glass, 
which was also the mainstay of our founding business. At the time, profit 
margins were large. Further, sales were growing steadily thanks to global 
economic development. However, such factors as the subsequent bursting 
of Japan’s economic bubble caused a slump in sales of architectural glass, 
and in 1998 AGC Inc. recognized a non-consolidated operating loss for  
the first time since listing. We realized that a way out of these difficulties 
was offered by the liquid crystal display (LCD) glass market. As this market 
was booming, we grew steadily, posting record profits in fiscal 2010. 
Unfortunately, the market matured, growth in the LCD glass field stalled, 
and our performance slumped once again.
	
Thus, since around the beginning of this century, the AGC Group’s 
performance has fluctuated. Aiming to break away from a profit structure 
that was overly dependent on a single business and to build a stable busi-
ness portfolio resilient to market fluctuations, in February 2016 we set out 
Vision 2025, which identified Core Businesses and Strategic Businesses as 
the two pillars of our long-term management strategy. Operating in such 
fields as glass, chemicals, display glass, and ceramics, Core Businesses were 
to form a stable long-term profit base, while Strategic Businesses were to 
achieve strong growth by targeting the fields of mobility, electronics, and 
life science. Vision 2025 stated: “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. The AGC Group will 
continue being a highly profitable, leading global material and solution 
provider.” With our sights set on these goals, we embarked on the road  
to corporate transformation.
By providing differentiated 
materials and solutions,  
AGC strives to help realize  
a sustainable society and 
become an excellent com-
pany that grows and evolves 
continuously.
Yoshinori Hirai
Representative Director, President & CEO
18
Management Messages


 P25, P33 
For details on the medium-term man-
agement plan AGC plus-2023, 
please see “A Message from the Chief 
Financial Officer” and “Toward 
Realizing Vision 2030.”
 
 P6, P38 
For details on the long-term social 
issues identified as AGC’s material 
issues, please see “The AGC 
Group’s Value Creation Model” and 
“Process for identifying Long-Term 
Social Issues (Material Issues).”
 
 
 
 
 
 
 
	
To realize Vision 2025, we began pursuing a strategy of “organizational 
ambidexterity”*1 based on advancing both Core Businesses and Strategic 
Businesses. Our target was to raise the percentage of total earnings con-
tributed by Strategic Businesses to 40% by fiscal 2025. As a milestone for 
this target, we sought operating profit of ¥40.0 billion from Strategic 
Businesses in fiscal 2020. We have surpassed the milestone by posting 
¥44.4 billion operating profit  for the businesses in fiscal 2022, thanks to 
greater-than-expected growth in the electronics and life science. 
	
Therefore, I believe that corporate transformation toward a new busi-
ness portfolio progressed steadily.
*1 Organizational ambidexterity refers to the ability of an organization to explore new technologies and markets 
while exploiting mature ones. This concept has been proposed by, among others, Professor Charles A. O’Reilly 
of Stanford University’s Graduate School of Business in the United States.
 
Advancing toward Vision 2030
In light of our progress, we decided to embark upon the second phase of 
corporate transformation. In February 2021, we announced a new 
medium-term management plan, AGC plus-2023, and a new long-term 
management strategy, Vision 2030, which we summarize as follows. “By 
providing differentiated materials and solutions, AGC strives to help realize 
a sustainable society and become an excellent company that grows and 
evolves continuously.” Further, the new vision sets out the following 
Groupwide strategy: “With both Core and Strategic Businesses as drivers, 
AGC will optimize its business portfolio and create economic and social 
value continuously.”
	
Under the vision, we have set financial targets with respect to economic 
value. Specifically, we are focused on realizing a stable ROE of 10.0% or 
higher by fiscal 2030. Also, we initially sought to achieve by 2030 a record 
operating profit, by surpassing ¥229.2 billion marked in fiscal 2010. 
However, in fiscal 2021 we posted operating profit of ¥206.2 billion, 
exceeding the initial forecast of ¥100.0 billion. Therefore, we have upwardly 
revised operating profit targets as shown in the table below. This robust 
performance reflected the COVID-19 pandemic’s smaller-than-expected 
impact on business results coupled with a global economic recovery and the 
significant growth of the Life Science Business—one of our Strategic 
Businesses—as a result of catering to increased demand stemming from the 
pandemic. Moreover, our business results are testament to steady progress 
in building a business portfolio resilient to market fluctuations.
	
Meanwhile, based on the long-term social issues that we have identi-
fied as our material issues, we will create social value in five areas by con-
tributing to the realization of a sustainable global environment, the 
realization of a safe and comfortable urban infrastructure, the realization of 
safe and healthy lifestyles, the maintenance of a healthy and secure society, 
and the creation of fair and safe workplaces.
Our business results are testament to steady 
progress in building a business portfolio  
resilient to market fluctuations.
FY2021 (result)
FY2023
FY2025
FY2030
…
FY2050
Companywide 
­operating profit
¥206.2 billion
¥230.0 billion
¥250.0 billion
¥300.0 billion
Operating profit of 
Strategic Businesses
¥53.8 billion
¥80.0 billion
¥100.0 billion
¥150.0 billion
EBITDA*
¥372.9 billion
¥433.0 billion
¥490.0 billion
ROE
10.2%
Stable ROE of 10.0% or higher
Debt-to-equity ratio
0.41
0.5 or lower
Economic value
Economic Value We Will Create
 Reach the ambitious, upwardly revised target for operating profit in fiscal 2025 and the newly established target 
for operating profit in fiscal 2030
 Enable Strategic Businesses to account for more than half of Companywide operating profit by fiscal 2030
 Grow and evolve continuously and realize a stable ROE of 10.0% or higher
A Message from the President & CEO
* EBITDA = Operating profit + Depreciation
19
Management Messages

Accelerating Business Portfolio Transformation
We will realize the long-term management strategy Vision 2030 by pursu-
ing initiatives focused on two overriding goals. The first is business ­portfolio 
transformation, which we have been working toward for some time. As I 
mentioned earlier, in 2016 we defined Core and Strategic Businesses. 
In the following fiscal year, Core Businesses generated ­operating profit of 
¥100.0 billion, while Strategic Businesses produced operating profit of 
about ¥14.0 billion.
	
Subsequently, the operating profit of Core Businesses continued to 
grow, reaching ¥152.4 billion in fiscal 2021. This growth was attributable 
to the recovery of the Architectural Glass Business following structural 
reform, to the marked growth of the Chlor-Alkali Business in Southeast 
Asia due to aggressive investments beginning from 2016, and to higher 
earnings that resulted from the soaring prices of chlor-alkali products. 
Markets could soften going forward, and operating profit may decline 
correspondingly. Nonetheless, I firmly believe we have established a stable 
long-term profit base of about ¥150.0 billion, as Core Businesses should be 
able to maintain their current level of operating profit given the likely recov-
ery of the Fluorochemicals & Specialty Chemicals and Automotive Glass 
businesses, which were significantly impacted by the pandemic.
	
Meanwhile, operating profit from Strategic Businesses reached ¥53.8 
billion in fiscal 2021, having risen by around ¥10.0 billion each year since 
fiscal 2016. Through continued growth at a similar pace, this operating 
profit is projected to reach ¥150.0 billion by fiscal 2030, thereby accounting 
for more than half of the AGC Group’s overall operating profit. Through  
the accelerated business portfolio transformation and the continuous 
growth and evolution, we will realize a stable ROE of 10.0% or higher. 
Furthermore, the growth of Strategic Businesses could very well outpace 
the aforementioned projection. Such optimism is not unfounded. For exam-
ple, we will accelerate expansion of the biopharmaceutical CDMO (contract 
development and manufacturing organization) business in the life science 
field as well as the EUV lithography photomask blanks business and other 
semiconductor-related businesses in the electronics field.
	
Also, to sustain growth and evolution, we must not only expand exist-
ing Strategic Businesses but also continuously create new ones. For 
instance, plans call for growing the net sales of the Life Science Business to 
To sustain growth and evolution,  
we must not only expand existing  
Strategic Businesses but also  
continuously create new ones.
Operating Profit of Core Businesses and Strategic Businesses 
(Billions of yen) 
 
 
 

 
 
 
 

(FY)
119.6
14.2
105.4
53.8
152.4
80.0
150.0
100.0
150.0
150.0
150.0
206.2
230.0
2025
2030
2017
2021
2023
250.0
300.0
Core 
Businesses
Forecast
Strategic 
Businesses
Business Portfolio Transformation
 Position Core Businesses as a 
stable long-term profit base
 Continue growing Strategic 
Businesses so that they account 
for more than half of 
Companywide operating profit 
by fiscal 2030
A Message from the President & CEO
20
Management Messages

¥200.0 billion by fiscal 2025. When net sales reach this scale, the business 
will transition from a Strategic Business to a Core Business. At this juncture, 
while ensuring that existing Strategic Businesses grow into new Core 
Businesses, we must prepare for the creation of new Strategic Businesses. 
With this in mind, in 2021 we established a task force for the creation of 
new Strategic Businesses. In the near future, we should be able to present 
the next mainstay Strategic Businesses. With regard to the materials indus-
try, developing and bringing to market a single product generally takes 
from five to 10 years. As is the case with EUV lithography photomask 
blanks, lead times as long as 15 years are not uncommon. Therefore, when 
exploring our next Strategic Businesses, we have to look ahead not just one 
or two years but 10 or 20 years. Accordingly, in opening up new fields, we 
are using long-term perspectives to guide our efforts.
	
Here I would like to comment on themes related to climate change. 
Last year, I commented in the AGC integrated report 2021 that energy and 
environment would be promising fields for our next Strategic Businesses. 
However, since the development of technologies and businesses in the 
energy and environment fields is critical for both Strategic Businesses and 
Core Businesses, we have decided to advance initiatives through both types 
of business.
Moving Forward with Initiatives to  
Address Climate Change
The second overriding goal of initiatives to realize Vision 2030 is the pro-
motion of sustainability management. In global initiatives to address social 
issues, the past few years have seen particular emphasis placed on climate 
change. We are proud that, for more than a century, we have addressed a 
range of social issues by providing unique materials and solutions that meet 
society’s changing needs. With respect to climate change, however, the 
materials industry emits a large amount of greenhouse gas (GHG) emis-
sions, and the AGC Group is no exception. Aware of this issue, in February 
2021 we declared the achievement of net-zero carbon emissions by 2050 
as a goal.
	
Let me explain our specific measures to reduce GHG emissions. First of 
all, glass is manufactured by melting raw materials at the high temperature 
of 1,600 °C. To reduce the CO2 emitted during this process, AGC has been 
steadily converting the fuel used by glass-melting furnaces from heavy oil 
to natural gas, which when combusted produces 20.0% less CO2 emissions 
than heavy oil. We increased the percentage of our glass-melting furnaces 
fueled by natural gas from 46.0% to 93.0% between 2010 and 2020. In 
addition to such efforts, as an industry leader, the AGC Group is developing 
and introducing world-class energy-saving glass manufacturing technolo-
gies, and the Group is advancing the development of other leading-edge 
production technologies, such as carbon-free ammonia combustion. 
Further, in February 2022 we made a full-scale introduction of internal 
carbon pricing. Our efforts to reduce GHG emissions will be accelerated by 
this Groupwide adoption of internal carbon pricing, previously only used  
by our European glass operations pursuant with the region’s progressive 
environmental measures.
	
In addition, as shown by the long-term social issues that the AGC 
Group has identified as its material issues, addressing climate change repre-
sents both a major opportunity and a major risk. Anticipating even stronger 
demand for environment-friendly products, we have developed various 
products, including a vacuum-insulating window, building-integrated pho-
tovoltaic (BIPV) modules, and the AMOLEA™ series of next-generation 
refrigerants and solvents. Going forward, we will expand our lineups of 
environment-friendly products. For example, over its service life architec-
tural insulating glass is estimated to realize a reduction in CO2 emissions 
equivalent to 10 times*2 the CO2 emitted during the product’s manufac-
ture. Further, demand for electrolyte polymer for fuel cells is growing apace 
as fuel-cell vehicles become popular due to initiatives to realize a hydrogen 
A Message from the President & CEO
21
Management Messages

energy-based society. Moreover, our offerings that combine outstanding 
power generation performance with excellent durability have secured us a 
dominant position in the market for these products and will continue con-
tributing to the spread of fuel-cell vehicles.
	
What is more, Strategic Businesses have high asset efficiency and robust 
growth potential and, compared with Core Businesses, boast extremely 
high carbon efficiency. Therefore, by expanding the former while improving 
the carbon and asset efficiency of the latter, we will build an optimal busi-
ness portfolio that continuously creates and enhances economic and  
social value.
	
The aforementioned business portfolio transformation will enable the 
AGC Group to reach milestones on the way to realizing the goal of net-
zero carbon emissions by 2050. Specifically, by 2030 we will achieve reduc-
tions versus 2019 levels of 30.0% in GHG emissions*3 and 50.0% in GHG 
emissions per unit of sales.
*2 Based on the actual figures of the Architectural Glass Business in Europe
*3 Scope 1 GHG emissions + Scope 2 GHG emissions 
Scope 1: Direct GHG emissions from the business operator (fuel combustion and industrial processes) 
Scope 2: Indirect GHG emissions derived from the use of electricity, heat, and steam supplied by other parties
 
 
 
 
 
 
 
Heightening the Sustainability of Society and the  
AGC Group
 
Social issues related to sustainability are not limited to climate change. To 
take one example from among the long-term social issues identified as our 
material issues, we view facilitating better health and longevity as a key 
opportunity. Today, the axis of the global economy is shifting from devel-
oped to emerging countries. As emerging countries follow developed coun-
tries and become long-lived societies, demand for the technologies and 
products that support these societies will grow rapidly. One such product 
category is biopharmaceuticals, an area that we are engaged in through a 
CDMO business in the life science field. Messenger ribonucleic acid (mRNA) 
vaccines, which have come to the fore during the COVID-19 pandemic, are 
biopharmaceuticals and are likely to play an increasingly prominent role in 
society. To date, the AGC Group has helped address social issues based on 
its competence in technologies related to inorganic and organic chemistry. 
By adding biochemistry-based technologies to this skill set, we will make an 
even greater contribution to the new society of the 21st century.
	
Further, to remain sustainable, the AGC Group must diversify its human 
resources. The Group operates businesses globally, with overseas opera-
tions accounting for approximately 70.0% of total net sales and 80.0% of 
overall personnel. Given our global presence, we have to develop systems 
and environments that encourage employees of various nationalities to play 
We will build an optimal business portfolio 
that continuously creates and enhances eco-
nomic and social value.
   P.38   
For information on the AGC 
Group’s material issues, please 
see “Process for Identifying 
Long-Term Social Issues 
(Material Issues).”
A Message from the President & CEO
22
Management Messages

more active roles. Also, we will promote such employees to management 
and executive positions. As for AGC Inc. on a non-consolidated basis, the 
empowerment of female employees is an urgent task. Accordingly, we 
have set targets for raising the percentages of women in a range of senior 
positions. Using the end of fiscal 2021 as a benchmark, by 2030 we aim to 
increase the percentages of female managers from 4.0% to 8.0%, female 
executive officers from 3.0% to 20.0%, and female executives from 
18.0% to 30.0%. Also, we are preparing a road map for the achievement 
of these targets.
	
At the same time, we are enhancing disclosure of the aforementioned 
efforts and other sustainability initiatives. In making investment decisions, 
investors are increasingly seeking disclosure on environmental, social, and 
governance (ESG) factors. We must provide explanations that are readily 
understandable for both investors and society at large. For this reason, we 
are implementing a range of measures designed to improve not only the 
quantity but also the quality of our disclosure. These measures include the 
publication of the AGC Integrated Report and the AGC Sustainability Data 
Book as well as the holding of ESG IR briefings. Through these efforts, we 
will actively enhance the sustainability of ­society and our businesses.
Continuing to Grow and Evolve by  
Leveraging People Power
At the beginning of this message, I mentioned that we embarked on the 
path toward corporate transformation in 2016. When business conditions 
are tough, companies generally place greater emphasis on managerialism, 
while personnel evaluation systems tend to become more focused on 
demerits. In such environments, employees are negatively evaluated if they 
take on challenges and fail. In the AGC Group in 2016, a similar tendency 
was prevalent. However, deep down inside, there was always a strong 
appetite for taking on challenges, and it has enabled the AGC Group to 
realize innovations and benefit society to this day. Looking back to our 
origins, this attitude is clear from the motto that expresses our founding 
spirit: “Never take the easy way out, but confront difficulties.” Aiming to 
revive this mindset, our CEO at the time, Takuya Shimamura, who is cur-
rently the Group’s chairperson, issued a message urging the Group to 
return to its starting point. He wanted to restore our original corporate 
culture by shifting to positive evaluations that commended those taking on 
challenges and following through ambitious initiatives. Reviving the hall-
marks of our corporate culture is another important element of corporate 
transformation. Although we still have some way to go, we are making 
steady progress in fostering a merit-focused corporate culture. For example, 
we conduct an engagement survey of all AGC Group employees every 
three years. A comparison of the 2016 and 2019 surveys shows that 
employee engagement has risen in all categories. I believe this improve-
ment reflects the gradual spread of a corporate culture that values indi-
vidual employees and praises them for tackling bold initiatives.
	
Our efforts to enhance the corporate culture have put particular 
emphasis on dialogue between management and employees. Simply issu-
ing Groupwide statements on the direction in which the senior manage-
ment team is headed is not enough to ensure that messages get through 
to all employees. Messaging that is relatable and resonates with employees 
is important. Therefore, at our business locations worldwide we hold dia-
logues between management and employees, which are aimed at inspiring 
employees to act autonomously. Before the pandemic, my predecessor and 
I participated in more than one hundred such dialogues a year. Since the 
pandemic, we have continued the dialogues by holding them online.
	
Personnel are the driving force behind all value creation. Without a 
doubt, the comprehensive strength of the AGC Group will be enhanced if 
it provides an environment in which each person can enhance their skills 
and work with vitality and pride. One of our slogans is AGC People: the 
driver of our growth!*4 We will realize this slogan and continue to grow 
and evolve by enhancing our corporate culture, promoting diversity, devel-
oping personnel, and sustaining efforts to improve employee engagement.
*4 This expresses a situation in which maximum utilization of each person’s professional skills enables the 
creation of a strong organization that is based on the sum total of each person’s contributions, the realization 
of business strategies and organizational targets, and the growth of the Company and each person.
A Message from the President & CEO
23
Management Messages

Taking a Far-Sighted Approach to Addressing Social Issues
Our Mission requires us to be an everyday essential part of our world, and 
it is set forth in AGC’s Group Vision “Look Beyond.” I believe our 
­purpose—in other words, the role we should always play in society—is best 
summed up by the statement: AGC’s unique materials and solutions make 
people’s lives better around the world every day. In fulfilling this role, a long-
term perspective is essential, as suggested by the phrase “Look Beyond.” 
Farsightedness is needed because, as I mentioned earlier, the creation of 
unique materials and solutions can take as long as 10 or 20 years.
	
Further, AGC’s Group Vision establishes Our Shared Values—Innovation 
& Operational Excellence, Diversity, the Environment, and Integrity. 
Although formulated in 2002, Our Shared Values have not become anti-
quated during the intervening 20 years. In fact, they are more relevant than 
ever. I feel that this ongoing relevance gives an idea of how much impor-
tance has been placed on the long-term perspectives utilized in the busi-
ness management of AGC.
	
In addition, when changing our trade name from Asahi Glass to AGC in 
2018, we formulated the brand statement Your Dreams, Our Challenge to 
encapsulate the various messages of the Vision. Based on its founding 
spirit, the AGC Group has supported the leading companies of each era 
and helped address social issues by building unshakable relationships of 
trust with customers and providing unique materials and solutions. 
Continuing this tradition of collaboration and innovation, we will work 
with customers and society to combine knowledge and advanced technol-
ogy and help make ever-greater achievements possible and bring bolder 
ideas to life. Through the brand statement, we want to cultivate a shared 
sense of commitment with all of our stakeholders.
	
When talking with employees, I always stress the importance of taking 
a broad view from a high vantage point. By this, I mean we should not 
become overly preoccupied with near-term exigencies but rather value 
long-term perspectives, something I always try to keep in mind myself 
when managing businesses. By keeping long-term viewpoints at the core 
of management efforts, we will accomplish corporate transformation and 
sustain growth and evolution. In doing so, we will continuously create 
economic and social value while elevating corporate value. As we move 
forward, I would like to ask all of our stakeholders for their continued sup-
port and understanding.
June 2022 
Yoshinori Hirai
Representative Director,  
President & CEO
By keeping long-term viewpoints at the core 
of management efforts, we will accomplish 
corporate transformation and sustain 
growth and evolution. In doing so, we will 
continuously create economic and social 
value while elevating corporate value.
A Message from the President & CEO
24
Management Messages

With our sights set on realizing Vision 2030, we will ­transform  
our business portfolio in line with the basic ­strategies set forth  
in the medium-term management plan AGC plus-2023.
A Message from the Chief Financial Officer
Fiscal 2021 Review
 Realizing the Early Achievement of Fiscal 2023 Financial Targets
The AGC Group is currently implementing its three-year medium-term management plan,  
AGC plus-2023, which ends in fiscal 2023. Initially, the plan’s four financial targets for fiscal 
2023 were operating profit of ¥160.0 billion, operating profit of Strategic Businesses of ¥70.0 
billion, ROE of 8%, and a debt-to-equity ratio of 0.5 or lower.
	
In fiscal 2021, the first year of the plan, net sales increased 20.2% year on year, to the 
record level of ¥1,697.4 billion, while operating profit rose 172.1% year on year, to ¥206.2 
billion. Of this amount, the operating profit of Strategic Businesses was ¥53.8 billion, up ¥9.4 
billion from the previous fiscal year. Reflecting higher operating profit and recognition of a gain 
on the transfer of the Architectural Glass Business in North America, profit for the year attribut-
able to owners of the parent grew 278.5%, to a record high of ¥123.8 billion.
	
As a result of the aforementioned performance, ROE increased 7.3 percentage points year 
on year, to 10.2%. Further, due to the repayment of interest-bearing debt accumulated in prep-
aration for the contingencies related to the COVID-19 pandemic, the debt-to-equity ratio was 
0.41. Moreover, excluding the target set for the operating profit of Strategic Businesses, we 
reached the plan’s financial targets two years ahead of schedule. This rapid progress was attrib-
utable to the pandemic’s lighter-than-expected impact on Core Businesses coupled with favor-
able performances by Strategic Businesses, which saw stronger demand for semiconductors and 
biopharmaceuticals due to the pandemic as well as significant growth in the electronics and life 
science fields. Also, in Southeast Asia a hike in the market prices of chlor-alkali and urethane 
products surpassed expectations and significantly boosted business results.
	
In light of the aforementioned business results, we have revised the financial targets of the 
medium-term management plan.
Shinji Miyaji
Representative Director,
Senior Executive Vice President, CFO, CCO
General Manager of the Corporate Planning 
General Division
25
Management Messages

FY2021 results
FY2023 targets
(Set in February 2021)
FY2023 targets
(Set in February 2022)
Operating profit
¥206.2 billion
¥160.0 billion
¥230.0 billion
ROE
10.2%
8%
10%
Operating profit of 
Strategic Businesses
¥53.8 billion
¥70.0 billion
¥80.0 billion
Debt-to-equity ratio
0.41
0.5 or lower
0.5 or lower
A Message from the Chief Financial Officer
 Progressing with Structural Reform of the Glass Segment, a Core Business
As for Core Businesses, the structural reform of the Glass Segment is progressing well. We are 
on track to reach the goal of reducing costs, centered on fixed costs, by ¥15.0 billion, compared 
with those of fiscal 2019, during the period of the current medium-term management plan.  
As of fiscal 2021, we have already reduced fixed costs by ¥12.0 billion.
	
In the Architectural Glass Business, the steady reduction of fixed costs in Europe lowered  
the break-even point of the business. Also, in August 2021 we sold our North American 
Architectural Glass Business, and in December of the same year we disposed of all shares of 
Schott Gemtron Corporation held by a U.S. subsidiary.
	
The Automotive Glass Business also lowered fixed costs by reducing the number of employ-
ees at its Europe General Division and consolidating production, through the introduction of 
highly efficient equipment that enabled the elimination of certain production lines. The perfor-
mance of the Architectural Glass Business has improved, partly due to a pickup in the market as 
governments worldwide ease restrictions to contain the pandemic. However, the Automotive 
Glass Business continues to face challenging conditions due to such factors as shortages of 
semiconductors and other products. Therefore, we will continue advancing structural reforms. 
However, the current pause in demand provides an opportunity to rigorously reform the cost 
structure of the Automotive Glass Business, given the difficulty of implementing cost reduction 
measures in a phase of production volume growth. Moreover, these reforms will raise the per-
centage of net sales that high-performance products account for, thereby realizing higher profit-
ability and getting the business back on a growth trajectory.
	
The Chlor-Alkali Business—which significantly boosted the AGC Group’s performance in 
fiscal 2021—saw sales prices soar globally as PVC supplies struggled to keep up with demand. 
Although this rise in prices has gradually softened since reaching a peak around October 2021, 
we expect the tightness of the supply–demand situation to remain unchanged. Particularly in 
Southeast Asia, where the Group has robust business foundations, infrastructure development is 
progressing rapidly as the region’s economy develops. Going forward, demand for PVC—indis-
pensable for infrastructure development—is likely to keep growing. By continuing to aggres-
sively ramp up the production capacity of the Chlor-Alkali Business, AGC will solidify the 
position it has built as the No. 1 supplier in Southeast Asia.
Initiatives for Each Basic Strategy
 Basic Strategy 1: Pursuing Ambidextrous Management
 Steadily Expanding Strategic Businesses
Next, I will outline progress under each of the medium-term management plan’s basic strate-
gies, beginning with efforts focused on pursuing ambidextrous management. Fiscal 2021 saw 
the net sales of Strategic Businesses increase more than ¥50.0 billion year on year, to ¥257.9 
billion. In the period through fiscal 2023, we expect steady net sales growth in all fields. In the 
life science field, the biopharmaceutical CDMO (contract development and manufacturing orga-
nization) business achieved particularly significant growth, and businesses in this field posted net 
sales of more than ¥100.0 billion. Also, the operating profit of these businesses has been rising 
at a rate of approximately ¥10.0 billion per year. Through until at least fiscal 2025, I do not 
anticipate any major concerns regarding the growth of Strategic Businesses. If I had to single 
out one field that may have issues, however, it would be mobility. Even allowing for the effect of 
the pandemic, the net sales of businesses in this field have not grown as much as expected, and 
their contributions to operating profit are likely to be realized later than hoped.
AGC plus-2023 Financial Targets
26
Management Messages

A Message from the Chief Financial Officer
 Basic Strategy 2: Promoting Sustainability Management
 Laying Foundations for Social Value Creation
I would now like to give an overview of measures aimed at promoting sustainability management. 
Compared with the previous medium-term management plan, the current plan focuses more 
strongly on social value creation. In fiscal 2019, AGC began considering how to help realize the 
Sustainable Development Goals (SDGs).*1 In conjunction with the release of the plan in fiscal 
2021, AGC internally and externally announced the five types of social value it will create. In 
addition, we have established the achievement of net-zero carbon emissions by 2050 as a goal, 
and we are currently formulating a specific road map with a view to reducing GHG (greenhouse 
gas) emissions. I believe we have made steady progress in laying the foundations for the cre-
ation of social value centered on helping realize a sustainable global environment. For example, 
in February 2022 we made full-fledged introduction of internal carbon pricing. Also, we have 
established diversity-related key performance indicators, such as numerical targets for the 
empowerment of female employees. However, the formulation of other key performance indi-
cators has yet to be completed and therefore remains a task going forward.
	
With concern over climate change mounting worldwide, society is becoming increasingly 
critical of industries that emit large amounts of GHG emissions, such as the materials industry. 
To help assuage concern in this regard, one option would be to divest businesses with high GHG 
emissions, but to do so would not solve the issue for society as a whole. Many of AGC’s 
products, including glass, which we have been manufacturing since our founding, are 
­indispensable to daily life. As a market leader, we have a responsibility to leverage our long-
cultivated, advanced technological capabilities with a view to both reducing GHG emissions 
generated in the manufacture of such products and creating new products that help society 
lower GHG emissions.
*1 The United Nations has adopted 17 SDGs, which comprise 169 targets. The SDGs and targets are to be achieved between 2016 and 2030.
 Basic Strategy 3: Gaining Competitiveness by Accelerating Digital Transformation
 Leveraging Accumulated Data to Advance Innovation
Our third basic strategy entails gaining competitiveness by accelerating digital transformation. 
Ahead of its competitors, AGC launched full-fledged digital transformation initiatives in 2015. 
We began by digitalizing our manufacturing sites. Consequently, over the past several years we 
have accumulated a huge amount of operational data. With respect to the introduction of smart 
factories, the Chemicals Business has made particularly noteworthy progress. Based on the vast 
amount of data being accumulated, this business is optimizing its manufacturing processes. 
Further, we are digitally transforming a wide range of business processes, including R&D, sales, 
and back-office processes.
	
Rather than limiting ourselves to the development and entrenchment of digital transforma-
tion measures for discrete business processes, we will revamp all business processes so that they 
can be digitalized and made more customer and market driven. Furthermore, these efforts will 
pave the way for transforming our business model itself. For example, the integration of our 
data with that of suppliers, client companies, and other business partners could heighten effi-
ciency throughout supply chains. Our hope is that, just as new combinations can trigger innova-
tion, combining different types of data in supply chains will encourage innovation and the 
creation of entirely new business models.
	
In realizing the aforementioned initiatives, it is important that personnel with an in-depth 
understanding of AGC’s technologies and businesses lead the drive toward digital transforma-
tion. Accordingly, in fiscal 2018 we launched Data Science Plus, an in-house program for the 
training of data scientists. Through this program, we are fostering dual-skilled personnel who 
have advanced data analysis skills and operational knowledge of such areas as materials devel-
opment, production, sales, and logistics. Since fiscal 2021, we have been incorporating a 
broader range of employees into the program by focusing on offering data scientist training to 
personnel directly involved in manufacturing processes.
27
Management Messages

A Message from the Chief Financial Officer
	
As for our policy on shareholder returns, while comprehensively taking into account such 
factors as performance and future capital requirements, we will continue to pay stable dividends 
with a consolidated dividend payout ratio of 40% as a target and to acquire treasury stock flex-
ibly. Regarding dividends for fiscal 2021, based on consideration of performance trends, the 
business environment, and future business development, we decided to pay an annual dividend 
of ¥210 per share, a year-on-year increase of ¥90 per share and comprising an interim dividend 
of ¥80 per share and a year-end dividend of ¥130 per share. The consolidated dividend payout 
ratio was 37.6%. Out of the annual dividend increase, ¥50 was a special dividend commensu-
rate with extraordinary profit recognized due to the transfer of the Architectural Glass Business 
in North America. 
	
With respect to fiscal 2022, we expect year-on-year increases of 6% in net sales, to 
¥1,800.0 billion, and 1.9% in operating profit, to ¥210.0 billion, but a 7.1% year-on-year 
decline in profit for the year attributable to owners of the parent, to ¥115.0 billion. In fiscal 
2022, we plan to pay an annual dividend of ¥210 per share, unchanged year on year and com-
prising interim and year-end dividends of ¥105 per share.
Outlook
 Aiming to Stably Realize ROE of 10% or Higher
ROE is a financial indicator on which I place particular importance as it measures whether a 
company is generating returns that exceed the expectations of capital markets. Since fiscal 
2012, AGC’s ROE has been unstable, hovering below 8%, and in certain fiscal years dipping 
below 2%. Given the instability of our ROE, we cannot claim to be meeting the expectations of 
capital markets. As I mentioned at the outset, in fiscal 2021 we achieved ROE above 10%, but 
the construction of a business portfolio that can stably sustain this level is critical.
	
To this end, we are measuring the asset efficiency of each in-house company and strategic 
business unit by using return on capital employed (ROCE)*2 as a financial indicator. Further, we 
are utilizing earnings before interest, taxes, depreciation, and amortization (EBITDA) as a financial 
indicator for the measurement of growth. Based on the aforementioned financial indicators, we 
have established targets best suited to each type of business. For businesses in which growth is 
important, we emphasize EBITDA, while for businesses in which asset efficiency is a priority, we 
emphasize ROCE. The chart on the following page visually represents changes in ROCE and 
Capital Allocation Policy
 Increase investments in Strategic Businesses by ¥100.0 billion compared with the previous plan
 Accelerate asset sales, including all shares held for strategic purposes
Previous Medium-Term Management 
Plan (FY2018–FY2020) 
(Billions of yen)
Current Medium-Term Management Plan 
(FY2021–FY2023) 
(Billions of yen)
900.0
900.0
140.0
280.0
480.0
Shareholder 
returns*
Asset sales
(Idle assets, 
cross-held  
shares, etc.)
Strategic 
Business 
investments
Core Business 
investments / 
Common 
Groupwide 
 investments
Operating 
cash flows
Breakdown of 
capital allocation
880.8
880.8
109.8
169.2
180.1
105.0
590.9
606.6
Shareholder 
returns
Debt  
financing,  
etc.
Strategic 
Business 
investments
Asset sales
Core Business 
investments / 
Common 
Groupwide 
investments
Operating 
cash flows
Breakdown of 
capital allocation
Resources of 
capital allocation
Resources of 
capital allocation
140.0 or more
760.0 or 
more
* Including payment of dividends to non-controlling interests
Financial Strategy
 Maintaining Financial Soundness While Realizing Focused Investments
Now, I will explain our capital allocation strategy. We will accelerate the growth of Strategic 
Businesses through an increase in investments of approximately ¥100.0 billion compared with 
investments over the period of the previous medium-term management plan. At the same time, 
we will curb investments in Core Businesses and common Groupwide investments by roughly 
¥100.0 billion, thereby keeping total investments at the same level as those of the previous plan 
while elevating shareholder returns by about ¥30.0 billion. We will source more than ¥760.0 
billion in investment capital from operating cash flows as they will rise in step with net sales 
growth. The remaining investment capital will be secured by accelerating the sale of idle assets 
and all shares held for strategic purposes. In this way, we will maintain financial soundness while 
realizing focused allocation of investment resources.
*2 ROCE (return on capital employed): Operating profit divided by operating assets
28
Management Messages

A Message from the Chief Financial Officer
EBITDA from fiscal 2021 through fiscal 2023. With fiscal 2019 as a benchmark, the current 
medium-term management plan initially called for the AGC Group as a whole to lift ROCE from 
5.9% to 7.5% and to increase EBITDA by approximately ¥100.0 billion, to ¥344.0 billion, by fiscal 
2023. In fiscal 2021, however, we surpassed these targets by posting ROCE of 11% and EBITDA 
of ¥372.9 billion. Therefore, our new targets for fiscal 2023 are to increase EBITDA by approxi-
mately ¥60.0 billion, to ¥433.0 billion, while keeping ROCE at 11%. Although the Chlor-Alkali 
and Urethane Business is expected to decline amid a softening market, anticipated recovery of 
the Automotive Glass Business and growth of other businesses will more than make up for it.
	
In fiscal 2021, despite a global economic environment that remained challenging, we were 
able to achieve ROE above 10%. This performance is testament to steady progress in building a 
stable business portfolio that is resilient to market fluctuations. Moreover, in light of our fiscal 
2021 performance, I do not see any cause for changing our basic strategy of pursuing ambidex-
trous management. By accelerating the growth of Strategic Businesses while improving the 
ROCE of Core Businesses, the AGC Group will transform its business portfolio even further.
	
I view my own role as being to develop and execute plans for the realization of the president 
& CEO’s vision. As I have explained, we are making good progress under the current medium-
term management plan. Nonetheless, we must recognize that stepped-up investments in 
Strategic Businesses mean both greater opportunities and risks. For this reason, I believe one 
important role of the chief financial officer is to vigilantly monitor risks and, if risks outweigh 
opportunities, take decisive action to curb investments. While keeping this role firmly in mind,  
I will transform our business portfolio in accordance with the basic strategies of the current 
medium-term management plan, thereby preparing the way for the realization of Vision 2030.
Projected Changes in ROCE of Respective Businesses
ROCE in FY2021 (Actual) 
 vs. FY2023 (Target) 
Notes:
1. EBITDA = Operating profit + Depreciation
2. ROCE: Operating profit forecast for the current fiscal year ÷ Operating asset forecast at the current fiscal year-end (based on fiscal 2023 targets). 
Operating profit by business is before allocation of common investments.
3. The diameter of each circle above, excluding those on a Groupwide basis, represents the scale of EBITDA of the respective businesses.
	 0%	
10%	
20%
Glass
Electronics
Chemicals
Group-
wide
Automotive Glass
Fluorochemicals & Specialty Chemicals
Chlor-Alkali and Urethane
Life Science
ROCE of 11%
EBITDA of 
¥433.0 billion
ROCE of 11%
EBITDA of 
¥372.9 billion
Architectural Glass
Display
Electronic Materials
29
Management Messages

Three R&D Pillars
 Accelerating Development to Meet Changing Needs
Over the more than 100 years since its founding, the AGC Group has refined core technologies 
in the fields of materials, functional design, and production. At the same time, we have accu-
mulated and evolved common basic technologies, such as analysis, evaluation, and simulation 
technologies, and combined them with our core technologies. These combinations have formed 
the basis of high-value-added solutions that could not have been achieved through the applica-
tion of technologies in isolation. In this way, we have helped address social issues in each era. 
Social issues are currently becoming increasingly complex, and our customers are seeking a 
greater variety of advanced solutions in response. In addition, with the faster pace of social 
change, the timely creation of solutions is gaining importance. The AGC Group will reflect such 
changes and continue helping solve social issues by increasing the speed of development through 
an emphasis on ambidextrous development, open innovation, and digital transformation.
 Ambidextrous Development
 Heightening the Competitiveness of Existing Businesses While  
Creating Tomorrow
First of all, let me explain ambidextrous development. “Right-handed” development refers to the 
innovation of existing production technologies and basic technologies and to the development 
of new products together with our customers. Involving working closely with customers and 
catering to their needs, this type of development uses a forecasting approach in which current 
conditions are the starting point of projections and improvement measures. “Left-handed” 
development, by contrast, is based on backcasting, which begins by anticipating future trends 
and then undertakes the initiatives and new business creation needed to adapt to these trends. 
In other words, the goal of left-handed development is to open up new markets by redefining 
existing production technologies and fundamental technologies. Our history includes many 
examples of both types of development. An example of right-handed development is AGC’s use 
of architectural glass production technologies and basic technologies. Using these technologies, 
we developed Low-E glass, which is highly functional double-glazing glass that has heat-­insulating 
and heat-shielding properties. As for left-handed development, the development of automotive 
glass and glass for cathode-ray tubes enabled forays into the automobile and television fields.
Hideyuki Kurata
Representative Director, Executive Vice President, CTO,  
General Manager of the Technology General Division,  
General Manager of the Business Development Division
AGC will step up the pace of R&D by focusing on ­ambidextrous 
development, open innovation, and digital transformation.
A Message from the Chief Technology Officer
30
Management Messages

Both types of development are important. The AGC Group has grown and evolved by 
heightening the competitiveness of existing businesses through right-handed development 
while helping create the future through left-handed development. Balancing the two 
approaches is the key to advancing ambidextrous development. Although development bases 
tend to emphasize right-handed development that meets the needs of customers by solving 
their problems, this approach alone will not allow us to adapt to major changes in society. With 
this in mind, I encourage researchers to tackle both near- and long-term development chal-
lenges. At the same time, as I believe that my mission is to determine how best to allocate man-
agement resources between right- and left-handed development, I am committed to achieving 
an optimal overall balance between them.
Ambidextrous Development
 Right-handed development: Innovating manufacturing and basic technologies to develop 
new products together with customers
 Left-handed development: Redefining proprietary technologies and developing new markets
 Open Innovation
 Promoting Collaboration with External Partners
Next, I would like to focus on our approach to open innovation. As I mentioned earlier, society is 
calling for faster responses to issues that are becoming ever-more complex. Given the growing 
difficulty of addressing such social issues using only the AGC Group’s proprietary technologies or 
combinations thereof, collaboration with customers, universities, research institutions, venture 
companies, and other outside partners is vital.
	
To date, the Group has conducted many different types of collaboration. A recent example is 
our joint development initiative with NTT DOCOMO, INC., a major telecommunications carrier. At 
present, finding locations in cities where mobile communication antennas can be installed is 
becoming difficult. In response, we have been partnering with the telecommunications carrier to 
develop WAVEATTOCH™, a glass antenna that can be installed from the interior side of existing 
window glass, thereby converting the windows of downtown buildings into antennas.
	
We are also advancing open innovation through industry–academia tie-ups, which include 
joint research with the University of Tokyo, Tokyo Institute of Technology, and Nagoya University. 
These joint efforts are accelerating the creation of new products and businesses. Moreover, 
industry–academia tie-ups not only augment the skill sets of our research personnel but also 
provide university students with educational opportunities. Thus, such projects are very mean-
ingful in terms of enhancing the R&D capabilities of Japan as a whole.
	
In addition to the aforementioned efforts with external partners, the Group aims to accelerate 
innovation by promoting collaboration among in-house businesses. To this end, we established a 
collaborative creation space, AGC Open Square (AO, pronounced “ah-oh”), on the premises of 
the AGC Yokohama Technical Center (YTC) in 2020. 
Thus, based on the concepts of “connect,” “create,” 
and “materialize,” YTC has established a platform for 
collaborative creation with such partners as companies, 
research institutions, and universities. While precaution-
ary measures have been put in place to prevent the 
spread of COVID-19, AGC Open Square has already 
received many visitors from outside the Group.
	
Also, by bringing together R&D functions that were 
previously split between two bases, YTC has created a 
system that seamlessly connects everything from materi-
als and process development to equipment technology 
development. This integrated system gives in-house 
researchers more opportunities to interact with each 
other. Consequently, we have high hopes for YTC as a 
hub that will produce innovation.
 Digital Transformation
 Shortening Development Lead Times by Utilizing New Digital Technologies 
and Methods
The third component of our efforts to accelerate development is digital transformation, which 
entails the active adoption of new digital technologies and methods. For example, by incorporating 
A Message from the Chief Technology Officer
AGC Open Square (AO)—A collaborative space 
within the AGC Yokohama Technical Center
Existing
New
Markets and customers
Organizational capabilities and technologies
New
Existing
Core and Strategic  
Businesses
Left-handed
Right-handed
Development of new markets Utilizing redefined technologies to develop new markets
Innovations in manufacturing and basic technologies
Development of  
next-generation and new products
Working closely with customers and  
growing together
31
Management Messages

materials informatics—which means the use of AI, big data analysis, and data mining in materials 
development and composition development—the AGC Group is increasing the competitiveness 
and speed of R&D. What is more, proposals derived by engineers through the application of AI to 
the vast amount of data accumulated thus far will heighten the inventiveness of our researchers.
	
An example of a product that originated from the application of materials informatics is 
AMOLEA™, an environment-friendly fluorinated solvent. Normally, when developing fluorine 
compounds, many candidate compounds have to be actually synthesized. In developing 
AMOLEA™, however, before conducting actual synthesis we narrowed down candidate com-
pounds by running AI-enabled simulations that referred to a database comprising our accumu-
lated data and data collected from published papers from around the world. Also, we are 
dramatically truncating development lead times through the use of virtual reality for prototype 
creation and tests that formerly had to be carried out in the real world. Such initiatives include 
utilizing virtual reality spaces to share with customers visual representations of architectural or 
automotive glass installations. Also, we are using numerical analysis methods to predict the 
fracture patterns of chemically tempered glass.
Reinforcement of the AGC Group’s Comprehensive Strengths
 Heightening Comprehensive Strengths by Integrating Businesses Globally
As well as AGC’s Technology General Division and Intellectual Property Division, the chief tech-
nology officer has jurisdiction over Groupwide divisions, namely, the Environment, Occupational 
Health & Safety and Quality (EHSQ) General Division and Business Development and Productivity 
Innovation divisions. In the AGC Group, which has introduced an in-house company system, 
these divisions enhance the Group’s comprehensive strengths by globally linking technologies 
and businesses. For example, awareness of sustainability is growing worldwide. Therefore, in 
addition to in-house company and regional initiatives, more than ever the AGC Group must take 
a global approach to identifying and advancing measures to address environmental, safety, and 
quality issues. With this in mind, the AGC Group has declared that it aims to achieve net-zero 
carbon emissions by 2050. To realize this goal, the EHSQ General Division and the Technology 
General Division have to strengthen cooperation with in-house companies so that the Group 
can concertedly advance initiatives and technology development that reduce greenhouse gas 
emissions. Given our leading shares of the markets for various materials indispensable for day-
to-day life, I believe that we have a responsibility to promote such initiatives.
	
Another important role of the chief technology officer is the creation and development of 
new Strategic Businesses. Tasked with proposing and advancing such businesses, the Business 
Development Division not only coordinates with in-house companies, strategic business units, 
and the Technology General Division but also collaborates with external partners. In  
addition, I want to emphasize that the technological power of the AGC Group lies in the 
all-encompassing scope of its technological capabilities. Our core technologies include materi-
als technologies for glass, inorganic, organic, and ceramic materials; functional design tech-
nologies that realize composite, highly functional materials; and production technologies that 
support innovative processes and unique facilities. As well as the aforementioned core tech-
nologies, we have further developed and incorporated such common basic technologies as 
analysis, evaluation, and simulation technologies.
Responsibilities of the Chief Technology Officer
 Developing Personnel and Technologies to Continue Benefiting Society
In manufacturing, technologies are key. Accordingly, the continued creation of technologies that 
earn worldwide recognition is essential for the sustained growth of AGC’s corporate value. 
Given that only people can create technologies, the establishment of a culture that nurtures 
personnel and technologies and thereby enables the Group to continue contributing to society 
is paramount. The Group has many highly skilled, ambitious personnel. Indeed, the growth of 
the AGC Group has been driven by a virtuous cycle in which the outstanding technologies and 
technological prowess established by these personnel have attracted additional talent. To main-
tain this cycle, we must always set challenging goals, a mindset encapsulated by the motto 
expressing our founding spirit: “Never take the easy way out, but confront difficulties.” Further, 
whatever lofty goals we set, I am confident that we have the ability to accomplish them.
	
I am committed to carefully analyzing the ambitious goals proposed by each person and to 
holding discussions with personnel to support the achievement of these goals. My own goal is 
to create workplaces where diversity 
is recognized, all kinds of opinions 
can be expressed, and personnel have 
an ongoing sense of optimism and 
personal growth. Accordingly, I will 
fulfill my responsibilities as chief tech-
nology officer with a view to realizing 
this goal and creating employee-
friendly work environments of which 
personnel can be proud.
A Message from the Chief Technology Officer
32
Management Messages

Long-Term Management Strategy: Vision 2030
Under Vision 2030, AGC has set the following long-term aim: “By providing differentiated 
materials and solutions, AGC strives to help realize a sustainable society and become an 
excellent company that grows and evolves continuously.” To realize this, the Company 
must create economic value by improving capital efficiency through reforms to its business 
model and creating new businesses, in addition to creating social value through various 
corporate activities and by providing products and technologies. Our first major strategy in 
this endeavor is business portfolio transformation. AGC aims to expand Strategic 
Businesses and accelerate growth while reforming business models and core business struc-
tures in order to build a business portfolio resilient to changes in market conditions with 
high asset efficiency, growth potential, and carbon efficiency. Our second major strategy is 
the promotion of sustainability management. Sustainability targets for the entire Company 
and each business are set and then pursued while minimizing the negative impacts and 
maximizing the positive impacts of business activities on the planet and society.
 Grow through well-balanced creation of social and economic value
Our Mission and Brand Statement: Your Dreams, Our Challenge
In accordance with the “Look Beyond”  vision, we have declared Our Mission to be 
“AGC, an Everyday Essential Part of Our World: AGC’s unique materials and solutions 
make people’s lives better around the world every day.” This is central to management and 
our work at AGC. We decided on Your Dreams, Our Challenge as our brand statement to 
convey our passion to stakeholders inside and outside the Company. This signifies the 
purpose of the AGC Group, underpinned by Vision 2030. The Group revises its long-term 
management strategy once every five years or so while eyeing the next decade. This is 
mainly because it takes 10 to 20 years to develop and commercialize new materials. 
Moreover, we ask ourselves why the AGC Group exists while remembering where we came 
from, as expressed in our corporate philosophy and founding spirit, and view this process 
as an opportunity to revisit our long-term management strategy. Management, based on 
our long-term strategy that revolves around our purpose, is the basis for sustainable 
growth of the AGC Group.
Toward Realizing Vision 2030
In February 2021, the AGC Group unveiled Vision 2030, its new long-term management strategy, and also com-
menced its new medium-term management plan, AGC plus-2023. We are currently taking initiatives to reform 
the business portfolio and advance sustainability management as key strategies to sustainably create social value 
and economic value over the long term.
Social value
Creation of the five 
types of social value
Economic value
Stable ROE of  
10% 
or higher
Greater corporate value
By providing differentiated 
materials and solutions, AGC 
strives to help realize a sustain-
able society and become an 
excellent company that grows 
and evolves continuously.
Promotion of sustain-
ability management ×
Business portfolio 
transformation
Today, by working with others to combine knowledge and advanced technology, we help 
make ever-greater achievements possible and bring bolder ideas to life. AGC creates many 
types of social value through its products, based on its brand statement.
Brand Statement
33
Management Messages

What Is “Ambidextrous Management” at AGC?
Under Vision 2025, unveiled in February 2016, AGC defined Strategic Businesses as 
growth engines for the future and Core Businesses as components of its solid earnings 
foundation. Accordingly, the Company created a framework for strategic investments and 
aggressively pursued M&A deals, while also enhancing the ability of Core Businesses to 
generate cash, resulting in the rapid growth of Strategic Businesses at the same time. 
AGC’s approach to this kind of “ambidextrous management” became a case study at 
Stanford University’s Graduate School of Business, and the Company’s operations are man-
aged with a clear understanding of this concept.
	
Ambidextrous management at the AGC Group is unique in that it entails the coexis-
tence and practice of two different organizational capabilities, namely, exploiting mature 
businesses and exploring new businesses. This management system has become embed-
ded in our organizational culture. Business development divisions under the direction of 
the management team are responsible for business incubation through the corporate 
investment system, and business divisions and R&D divisions send human resources and 
train personnel to become in-house entrepreneurs. This system of nurturing businesses and 
training personnel for the eventual handing off to business divisions leads to improved 
sustainability of ambidextrous management without causing problems, such as shortages 
of personnel for creating new businesses, or misaligned interests that tend to arise 
between new business divisions and mature business divisions.
	
Encouraging employees to take on new challenges is a fundamental aspect of the 
organizational culture at the AGC Group. Adapting to industry and market changes, the 
history of the Group is one of constant creation of new applications for materials, and a 
spirit of taking on challenges is essential to innovation. The accumulation of such achieve-
ments has shaped the current organizational culture of the Group. Dialogue is key to pre-
serving this organizational culture. Through dialogues with business divisions and 
employees, management has continued to champion that learning from challenges and 
experiencing failures is good in itself. The culmination of successes and failures from facing 
challenges in our management systems and organizational culture is an irreplaceable, 
intangible asset that facilitates the continued improvement of corporate value for the AGC 
Group today and far into the future.
Direction of Business Portfolio Transformation
At the AGC Group, our business portfolio has changed substantially as a result of measures 
taken since fiscal 2015, when our current chairperson, Takuya Shimamura, was appointed 
CEO. Management defined Mobility, Electronics, and Life Science as Strategic Businesses, 
and it continues to grow and expand these businesses through marketing strategy and 
M&A deals. The period to date was the first chapter of corporate transformation, and the 
period starting in fiscal 2021 is the second chapter.
	
For this second chapter, AGC revised its business portfolio management methods in 
light of changes in the business environment and strategies, in a bid to further transform 
the business portfolio. Currently, AGC comprehensively evaluates businesses based on 
criteria that include resilience to market changes, asset efficiency, growth potential, and 
carbon efficiency; makes decisions on how to allocate management resources; and then 
draws up business strategies and investment plans.
	
Over the long term, it is imperative that we maximize economic value and social value 
while pursuing our business portfolio strategy. In our Core Businesses, most of which con-
sume large amounts of energy, we are focusing on technological innovations to reduce 
greenhouse gas emissions in the manufacturing process while increasing the ratio of 
higher-value-added products. In Strategic Businesses, meanwhile, since both carbon effi-
ciency and asset efficiency are high, AGC is keen to spur further growth in these busi-
nesses, which should lead to greater economic and social value. Growth in Strategic 
Businesses translates into the creation of a more sustainable business portfolio. As a spe-
cific example, in fiscal 2021, AGC sold its North American Architectural Glass Business and 
concentrated resources in the Architectural Glass Business in other regions where it has a 
stronger presence. In the Life Science Business, meanwhile, AGC is targeting market 
opportunities for growth through the timely expansion of production capacity with a stra-
tegic combination of capital investments and acquisitions. The central strategy of contin-
ued transformation of the business portfolio is to improve the corporate value of the AGC 
Group, now and in the future. The Group aims for Strategic Businesses to account for a 
majority of consolidated operating income by fiscal 2030.
Major Strategy 1  Business Portfolio Transformation
Toward Realizing Vision 2030
34
Management Messages

Initiatives in Strategic Businesses
Of the three businesses designated as Strategic Businesses, the Life Science and Electronics 
businesses were the first to embark on growth trajectories. In the biopharmaceutical 
CDMO*1 business in the Life Science Business, AGC has been contracted for drug develop-
ment projects through to commercial production with a combination of single-use bioreac-
tors (SUBs), which can handle many kinds of strains in small lots, and stainless steel cell 
culture (SUS) bioreactors, which are suited for large-scale projects. The Company is execut-
ing measures from a long-term perspective with the objective of reaching ¥200.0 billion in 
net sales from fiscal 2024 to fiscal 2025, by strengthening competitiveness in the field of 
cutting-edge gene and cell therapies. In the Electronics Business, AGC is expanding the use 
of photomask blanks for EUV lithography in the semiconductor production process. AGC 
plans to double its production capacity in fiscal 2022 and again in fiscal 2024, in a bid to 
tap into demand in this growing market.
Initiatives in Core Businesses
In the Core Businesses of Architectural Glass, Automotive Glass, Chemicals, Display, and 
Ceramics, AGC is tapping into demand in countries and regions around the world as social 
issues caused by climate change and urbanization become more serious. For example, sales 
have steadily increased for Low-E double-glazing glass, which helps buildings conserve 
energy, thanks to stricter government regulations regarding building renovations in Europe. 
In the Chemicals Business, chlor-alkali products have been performing well on the back of 
expanding demand for polyvinyl chloride (PVC) in Southeast Asian countries, where strong 
investments are being made in urban infrastructure. In order to reduce the environmental 
footprint of our business activities, we have been focusing on innovative manufacturing 
technologies and advancing R&D and field tests of energy conversion concepts, such as the 
electrification of the glass-melting process and use of ammonia combustion.
Major Expansion in Capacity in the Cell and Gene Therapy Field
The AGC Group has positioned the Life Science Business, which includes the biopharmaceutical 
CDMO business, as one of its Strategic Businesses, and has aggressively made acquisitions and 
capital investments to expand this business domain and bolster technologies.
	 In the cell and gene therapy field, which has seen significant advances in the past few years, in 
fiscal 2020, AGC acquired Italy-based Molecular Medicine S.p.A. (MolMed), which has a spec-
tacular track record and cutting-edge technologies. In fiscal 2021, AGC acquired the cell and 
gene therapy facility of Novartis Gene Therapies, gaining a foothold for production capacity in the 
United States, the largest market for such 
therapies in the world. Through investments to 
expand capacity at each site and leveraging 
MolMed’s superior knowledge, we are working 
to expand high-quality GMP*2 and services. 
	 The AGC Group provides a wide range of 
global CDMO services, from plasmid to cell 
and gene therapies, including from its site in 
Heidelberg, Germany, which is commercializing 
the contract manufacturing of plasmid DNA as 
a raw material for cell and gene therapies.
*1 CDMO (contract development and manufacturing organization): A company that is contracted to take over manufac-
turing and production method development
*2 GMP (good manufacturing practice): Standards for managing production and quality in pharmaceuticals and quasi drugs
World’s Highest-class Insulation Performance and  
High Durability Vacuum-Insulating Glass FINEO
FINEO is a vacuum-insulating glass that was developed in collaboration with Panasonic Holdings 
Corporation. It realizes best-in-class insulation performance and high durability with a thickness of 
less than 1 cm by utilizing advanced technology. Its thermal insulation performance equals that of 
a triple glazing while its weight is one third lighter while even better in terms of acoustic insulation 
and better light transmission. The development of a product that can be used in existing window 
frames led to the creation of new solutions that can be provided to both the new construction and 
renovation markets.
	 At its launch FINEO won the Belgian Prize for Energy and the Environment 2019 in the 
Sustainable Energy category. This prize is awarded to those who thanks to their achievement and 
creativity contribute towards saving the planet.
Toward Realizing Vision 2030
35
Management Messages

AGC’s Approach to Sustainability Management
Since its founding, the AGC Group has solved social issues by providing various materials 
and solutions through collaboration with its customers, who are leading players in each era. 
In recent years, the movement toward sustainability has been a major change in the busi-
ness environment that rivals the expansion of globalization and the proliferation of the inter-
net in the past. To adapt to this major change, AGC is changing what should be changed 
and maintaining what should be maintained. This is how the AGC Group strategically 
approaches sustainability management. To this end, the Company anticipates future 
changes in social issues and identifies material issues that could become major opportunities 
or risks over the long term. Moreover, we have clarified the social and economic value we 
aim to create while advancing Group management and business activities along this path.
	
More specifically, in addition to earnings targets, the Company has set sustainability 
targets based on material issues for each business division (i.e., product-based solutions for 
social issues and initiatives for the environment, human resources, and safety) and incorpo-
rates these goals in its medium-term management plans. The businesses of the AGC 
Group have diverse strengths, business models, products, and regions where business is 
developed. We therefore allow each business to effectively set their own logical goals 
based on their unique traits. Moreover, in response to problems caused by climate change, 
management decides Companywide policies and objectives for issues that AGC should 
focus on and clarifies the initiatives that should be taken by each business division.
Material Issues for the AGC Group
In tandem with changes in the operating environment and business conditions, the AGC 
Group formulated Vision 2030 after identifying long-term social issues (material issues) 
that should be regarded as major opportunities and risks for the AGC Group. Our current 
medium-term management plan has basic strategies and measures for realizing this vision. 
Major opportunities are social issues that might turn into business opportunities and lead 
to sustained growth over the long term in Core Businesses and Strategic Businesses. On 
the other hand, major risks are social issues that could pose a threat to the survival of the 
Group unless properly managed.
Major Strategy 2  Promotion of Sustainability Management
Social Value the AGC Group Wants to Create
 Creation of the five types of social value through business activities to resolve social issues
Contributing to the 
realization of safe and 
comfortable urban 
infrastructure
Contributing to the 
realization of safe and 
healthy lifestyles
Contributing to the 
maintenance of a healthy 
and secure society
Contributing to the 
creation of fair and safe 
workplaces
Contributing to the 
realization of a sustain-
able global environment
Exploration of new fields for 
Strategic Businesses that will 
follow on from the Mobility, 
Electronics, and Life Science 
businesses 
Establishment of 
Vision 2030 and the 
new medium-term 
management plan
Vision concept project
Identification of major 
­opportunities and major risks
SDG mapping
Analysis 
of social 
issues and 
trends
Phase 1 
(from January 2019)
Phase 2
(from July 2019)
Phase 3
(2020)
February 2021
We undertook the exploration of 
new fields for Strategic Businesses 
and analysis of such sustainability 
issues as the Sustainable 
Development Goals (SDGs) and 
environmental, social, and gover-
nance (ESG) factors, all of which are 
significant elements of Vision 2030. 
We identified issues requiring study 
in relation to Vision 2030 and made 
them important components of a 
vision concept project.
Based on the findings of Phase 1, 
mid-ranking employees selected 
from among business divisions 
advanced a project tasked with 
developing proposals for the 
basic concept of Vision 2030. At 
the same time, the Corporate 
Planning Division took the lead in 
clarifying long-term social issues 
(major opportunities and major 
risks).
With reference to the basic 
concept of the vision and the 
long-term social issues compiled in 
Phase 2, the Corporate Planning 
Division and Technology Planning 
Division established Vision 2030. 
As the first step toward realizing 
this vision, the entire AGC Group, 
including in-house companies, 
made a concerted effort to 
prepare the new medium-term 
management plan.
Announcement of Vision 2030 and  
the new medium-term management plan
Selected mid-ranking employees
Corporate planning division
Corporate planning division
Formulation Process for the Long-Term Management Strategy Vision 2030 and  
the Medium-Term Management Plan AGC plus-2023
Examples of initiatives:
Development and 
production of infrastruc-
ture materials, such as 
architectural Low-E 
double-glazing glass, 
automotive UV-cut glass, 
and PVC
Examples of initiatives:
Contributions to regional 
society, consideration of 
the surrounding 
environment, and 
guaranteeing of human 
rights in the supply chain
Examples of initiatives:
Development and 
production of pharmaceu-
ticals (intermediates, active 
ingredients), agrochemi-
cals (intermediates, active 
ingredients), and films for 
agricultural greenhouses
Examples of initiatives:
Initiatives to manage 
safety in work environ-
ments, respect for and 
acceptance of diversity, 
and improvement of 
employee engagement
Examples of initiatives:
Development of products 
and technologies that 
help reduce greenhouse 
gas emissions, response to 
climate change issues, and 
effective use of resources
Toward Realizing Vision 2030
Corporate 
planning 
division
Technology 
planning 
division
Business 
development 
division
Corporate planning 
division, etc.
In-house 
companies
36
Management Messages

Initiatives to Address Climate Change
As a midway point to its goal of achieving net-zero carbon emissions by 2050, the AGC 
Group has set 2030 milestone targets to reduce greenhouse gas emissions by 30% and cut 
greenhouse gas emissions per unit of sales by 50% (both compared with 2019 levels). We 
also intend to continue contributing toward a carbon-neutral world through our products 
and technologies. We have collected our specific strategies and measures to achieve net-
zero carbon emissions into a road map for addressing climate change, and have begun to 
address issues in order of priority and importance. As an industry leader, AGC is developing 
and introducing production technologies for energy-conserving glass with world-class 
performance, contributing to cutting emissions of greenhouse gases from the manufactur-
ing process. In addition to steadily and systematically outfitting oxygen combustion and 
electrical boosters to existing technologies and facilities, the Company is working on the 
development of innovative technologies that will have a major impact on the future. 
Specifically, from the end of December 2021, AGC launched the joint development of 
combustion technologies for ammonia fuel with Taiyo Nippon Sanso Corporation, the 
National Institute of Advanced Industrial Science and Technology, and Tohoku University. 
We are further expanding our contributions to the prevention of global warming through 
our products and technologies. In both Core Businesses and Strategic Businesses, AGC has 
drawn up strategic aims for technological and business development in the fields of the 
environment and energy. In accordance with these aims, the Company is expanding the 
use of the AMOLEA™ series of environment-friendly, next-generation refrigerants and 
solvent, as well as solar cells embedded in construction materials.
Human Resource Initiatives
AGC People: the driver of our growth! is the motto of the AGC Group. We aim to remain 
viable as a corporate group with the slogan, “By enabling each and every employee to fully 
demonstrate their capabilities, we are creating an organization that is stronger than the sum 
of its parts, as we achieve our business strategies and organizational targets while delivering 
corporate and individual growth.” To this end, we are pursuing diversity, strengthening the 
individual, and improving employee engagement. In 2021, opportunities for communication 
inside the Company were diminished by the COVID-19 pandemic. In order to improve 
employee engagement, we proactively deployed online 
meeting technologies; held global Companywide 
­meetings with management present; held discussions 
between management and employees at sites inside 
and outside Japan and employees at affiliated compa-
nies; and expanded skills-based networking events across 
national, regional, and business division boundaries.
Open Innovation Initiatives
At the AGC Group, we nurture open innovation with customers and external partners in 
order to maximize the value of our in-house developed materials and solutions. Through 
strategic communications with customers that are leading companies in their respective 
industries, the Group identifies future changes in the industry and technologies and 
­ceaselessly advances the development of technologies and products on multiple fronts with 
an eye on the future. With the aim of creating 
­solutions through the exploration and acquisition of 
innovative technologies and supporting technologies, 
the Company collaborates with a broad range of 
external partners, such as universities, research 
­institutions, and venture firms. In 2021, our new 
research wing was fully opened at the AGC 
Yokohama Technical Center, and we welcomed many 
companies to our collaborative creation space called 
AGC Open Square (AO) to explore the possibilities of 
collaboration.
Online dialogue between the management team 
and employees from overseas sites
See below for details about AGC Open Square.
 https://www.agc.com/en/innovation/ao/index.html
 We are aiming for net-zero carbon emissions in our business activities and striving to help the world 
become carbon neutral.
Production Process Reforms
Glass-melting process
Vacuum-insulating glass
Fluorine-based electrolyte 
polymers for fuel cells
Contributions to Reducing  
CO2 Emissions
Next-Generation Energy
Reduce our own emissions 
through technological 
innovation
Develop and spread prod-
ucts that help reduce CO2 
emissions during use
Develop and spread products 
that help proliferate hydrogen 
and renewable energy
H2
Toward Realizing Vision 2030
37
Management Messages

Process for Identifying Long-Term Social Issues (Material Issues)
Energy saving, creation, and storage 
and climate change mitigation
Construction of smart cities
Provision of reliable, safe water 
resources
The above procedure identified fields where  
existing products can help address current social issues.
 Compiled a list of social issues
• 169 targets of the SDGs
• Sustainability megatrends (circular economy, etc.)
• Based on the Global Risks Report (World Economic Forum), compiled a list of items representing opportunities 
and risks for the AGC Group (79 items in total)
Following the process below, the AGC Group identifies long-term material issues as major 
opportunities and major risks that might have an impact on the long-term direction of business 
and corporate value.
1. Focused on existing mainstay products in each business field
2. Calculated the “business impact score” for each product based on its sales and growth 
potential
3. Linked each product to the SDG targets to which it can contribute
4. Described the type of social value that the AGC Group is creating in relation to each SDG 
by taking into account the contributions of all products linked to a given target
5. Added up the total business impact score of all products linked to each type of social value
6. Corrected the business impact score for each type of social value based on the degree of 
contribution to addressing social issues
7. Set the corrected results as the social impact score and identified the top 15 types of 
­notable social value
Major Opportunities
Major Risks
• Addressing climate change
• Using resources effectively
• Developing social infrastructure
• Achieving safe, comfortable mobility
• Addressing food crises
• Building an info-oriented, IoT-society
• Facilitating better health and longevity
• Creating socially and environmentally 
­conscious supply chains
• Ensuring fair and equal employment and 
workplace safety
• Considering relationships with local com-
munities and the environment
1   SDG mapping
To enable analysis of our long-term social issues, we reconfirmed our 
current progress toward the realization of sustainability by using the 169 
targets of the SDGs as the basis for analysis of the types of social issues 
addressed by our existing products.
2   Analyzing social 
issues and trends
In light of its current contributions to the resolution of social issues, 
important opportunities and risks for the Group going forward were 
identified through analysis of future trends in social issues. (The analysis 
results were also used as basic information in preparing Vision 2030.)
3
  Identifying major 
opportunities and 
major risks
Based on the results of analyzing trends in social issues and in light of expert 
opinions, we identified major opportunities and major risks associated with 
simultaneously achieving sustainable development of the planet and society and 
sustainable growth as a corporate group. These opportunities and risks are 
discussed and determined by the Sustainability Committee and the Board of 
Directors and were then used as the foundation for setting sustainability targets.
 Formulation Process
Realization of safe, comfortable 
mobility
Health improvement and realization 
of longer life spans
 Assessed material issues for stakeholders
 Assessed material issues for the AGC Group
Social issues with opportunities
With respect to the list of social issues,
• Identified social issues addressed by customers and 
competitors
• Assessed material issues based on sustainability and 
megatrends
Social issues with opportunities
With respect to the list of social issues, assessed 
material issues based on relevance to current Core 
and Strategic Businesses and the potential fields for 
the latter
Social issues with risks
With respect to the list of social issues, assessed 
material issues based on the assessment indicators of 
major ESG rating organizations
Social issues with risks
With respect to the list of social issues, assessed 
material issues based on overviews of the Group’s 
value chains, including upstream and downstream
38
Management Messages

40	 Business Overview
41	 Glass Business
49	 Electronics Business
52	 Chemicals Business
56	 Ceramics Business
57	 New Business Creation
Business Strategies
This section gives an overview of each  
business and its strategies.
39
Business Strategies

Business Overview
153 companies
Domestic  16 companies
Overseas 137 companies
42 sites
Japan/Asia 
19 
Europe 
17 
The Americas 
  5 
Africa 
1 
35 companies
Domestic 
   9 companies
Overseas 
 26 companies
26 sites
Japan/Asia 
 23 
Europe 
1 
The Americas 
  2 
39 companies
Domestic  16 companies
Overseas 
  23 companies
25 sites
Japan/Asia 
17 
Europe 
 5 
The Americas 
3 
34 companies
Domestic  14 companies
Overseas  20 companies
5 sites
Japan/Asia 
 5 
31,205
Japan/Asia 
12,881
Europe 
15,158
The Americas 
   3,166
12,281
Japan/Asia 
11,980
Europe 
29
The Americas 
  272
8,852
Japan/Asia 
   6,082
Europe  
1,785
The Americas  
 985
3,661
Japan/Asia 
3,626
Europe 
   3
The Americas 
  32
Glass 
Business

Electronics 
Business

Chemicals 
Business

Ceramics 
and Other 
Businesses

Business
Net Sales (Billions of yen)
Operating Profit (Loss) (Billions of yen)
Operating Margin (%)
Group Companies / Manufacturing Sites 
(As of December 31, 2021)
CAPEX (Billions of yen)
Depreciation (Billions of yen)
Number of Employees  
(As of December 31, 2021)
Notes 1. Sub-business net sales are based on net sales to external customers.  2. As net sales and operating profit (loss) by business are before the deduction of eliminations, the sum of net sales by business does not equal Companywide net sales, and the sum of operating profit (loss) by business 
does not equal Companywide operating profit.  3. Among manufacturing sites in the Glass Business, for the Architectural Glass Business, the manufacturing sites are for float glass and figured glass.  4. Cover glass for car-mounted displays, previously included in the Electronics Business, was 
moved entirely to the Glass Business in 2022 following organizational changes at the Company.
2017
2018
2019
2020
2021
735.1
769.8
742.9
651.0
734.3
348.8
386.3
(1.0)
1.3
2.0
2.6
2.0
358.9
409.7
352.7
388.3
324.9
323.5
381.1
351.1
2017
2018
2019
2020
2021
262.4
247.8
276.7
289.4
305.0
196.4
66.0
171.0
66.9
9.9
174.7
90.5
11.5
177.2
105.8
6.3
182.1
121.0
1.9
2017
2018
2019
2020
2021
437.6
484.4
475.8
451.2
630.8
283.8
167.5
316.6
120.5
44.9
2.3
292.8
119.9
61.7
1.4
264.1
1.4
105.7
79.9
390.4
123.9
115.2
1.3
2017
2018
2019
2020
2021
75.4
79.0
83.2
81.1
79.4
2017
2018
2019
2020
2021
3.7
27.1
3.0
22.8
9.3
1.2
(2.5)
(16.6)
3.7
27.3
2017
2018
2019
2020
2021
10.4
27.3
9.6
23.7
25.6
9.2
37.8
13.1
12.1
36.8
2017
2018
2019
2020
2021
14.6
63.7
14.7
71.1
13.2
 63.0
11.2
50.5
22.0
138.8
2017
2018
2019
2020
2021
1.9
1.4 
3.6
2.8
3.9
4.6
4.2 
5.2
4.4
3.5
2017
2018
2019
2020
2021
45.6
63.7
47.0 
89.0
52.5 
80.4
51.0 
64.1
54.6
50.9
2017
2018
2019
2020
2021
48.0
51.0
41.1
79.5
47.3
55.8
47.9
80.7
69.6
60.3
2017
2018
2019
2020
2021
50.7
61.0
69.0
94.1
95.2
29.6
32.5
39.4
50.0
43.0
2017
2018
2019
2020
2021
2.8
1.2
4.3
2.0
1.9
2.1
1.2
2.5
2.2
1.5
 CAPEX  
 Depreciation
 Operating profit (loss)   
 Operating margin
 Display  
 Electronic Materials 
 Intrasegment
 Chlor-Alkali and Urethane 
 Fluorochemicals & Specialty Chemicals 
 Life Science  
 Intrasegment
 Net sales
 Architectural Glass  
 Automotive Glass 
 Intrasegment
 Operating profit (loss)   
 Operating margin
 Operating profit (loss)   
 Operating margin
 Operating profit (loss)   
 Operating margin
 CAPEX  
 Depreciation
 CAPEX  
 Depreciation
 CAPEX  
 Depreciation
(FY)
(FY)
(FY)
(FY)
(FY)
(FY)
(FY)
(FY)
(FY)
(FY)
(FY)
(FY)
40
Business Strategies

Glass Business
Companywide 
net sales 
breakdown
42%
Companywide 
operating profit 
breakdown
13%
 
Fiscal 2021 
Performance
Overview  
In 1909, we became the first company to successfully produce flat glass in Japan. Now, we 
boast one of the largest shares of the global market for float glass. Since its establishment, 
the AGC Group’s Architectural Glass Business has been a mainstay of profits. Currently, we are 
also aggressively developing new businesses that manufacture high-performance glass and 
environment-friendly glass. Examples of these leading-edge products include float glass for 
homes, buildings, and industrial use and such high-performance glass as double-glazing glass 
with heat-insulating and heat-shielding properties and laminated glass ideally suited to crime 
prevention applications.
Main Products  
Float glass, laminated glass, double-glazing glass, eco-glass, tempered glass, heat-resistant 
tempered glass, mirrors, colored glass, figured glass, and wired glass
Overview  
We have carved out one of the top share of the global market for automotive glass by establishing technology 
development sites in Japan, Europe, North America, and China that provide high-quality products, services, 
and solutions to global automobile manufacturers. The Core Business is the Automotive Glass Business, which 
manufactures and sells laminated glass, tempered glass, and other high-value-added products in 15 countries 
worldwide. Positioned as a Strategic Business, the Mobility Business boasts world-leading, advanced coating 
and glass-processing technologies, mainly used in the manufacture of cover glass for car-mounted displays. 
Going forward, this business will grow sales significantly.
Main Products  
Laminated glass, tempered glass, smart glazing, 99% ultraviolet cut glass, infrared cut glass, privacy glass, 
acoustic glass, laminated side windows, water repellent door glass, snow-melting and ice-melting front glass, 
electrothermal defogging glass, printed glass antennas, embedded digital television glass antennas, glass for 
head-up displays, module assembly windows, and cover glass for car-mounted displays
Architectural Glass Business
Automotive Glass Business
Architectural glass
Cover glass for 
car-mounted displays
Building-integrated 
­photovoltaic (BIPV) modules
Laminated glass 
and tempered glass
Glass antennas
Smart glazing
Power on
Power off
Net sales
¥734.3 billion
Operating 
profit
¥27.3 billion
Architectural Glass Business
Based on our vision of inspiring people by 
using glass to connect them with their 
surroundings, we provide a wide variety of 
products that meet the needs of each region.
Automotive Glass Business
We contribute to make safe and comfortable cars 
by providing high-performance automotive glass 
globally. At the same time, we develop and supply 
unique high-value-added products that will lead 
the realization of sustainable mobility society.
Business Strategies
41

Glass Business
Business Environment  
Business Issues  
Business Strategy  
Strengths  
Risk
 Regulations and social obligations focused 
on the greenhouse gas emissions of glass 
production processes
 A powerful brand that customers associate with advanced performance, quality, and reliability
 The industry’s most extensive product lineup, stretching from commodity products through to  
leading-edge high-value-added products
 An integrated value chain
 Comprehensive glass technology-related capabilities as a leading global company
Architectural Glass
 Be the long-term stable source of earnings by 
increasing competitiveness in our core markets
Opportunities
 Widening adoption of the environment-
friendly Renovation Wave Strategy,* mainly 
in Europe
 Growth in demand for environment-friendly 
products with improved energy efficiency 
and other benefits
 Growth of markets for 5G communications 
and other next-generation high-speed 
communications
* Announced in 2020 by the European Commission to 
promote renovation that improves the energy efficiency  
of buildings
Business
Main Task
Core 
Business
Davide Cappellino
President of Architectural Glass Europe 
& Americas Company
Our goal is to be a long-term, stable source of earnings for AGC and for the shareholders. Our ambition is 
to be the most profitable player in each of our business fields. Within our management policy “We lead the 
way for a better world,” we are working on five dimensions.
Be the Best Player in Each of Our Business Fields
We focus our resources, we accelerate innovation and apply the latest digital technologies to build the best 
supply chain and become the most reliable player in each of our markets. The world is becoming more and 
more conscious about the necessity to invest in energy conservation, for environmental and for economic 
reasons, and to achieve a better quality of life.
	
We, at AGC Architectural Glass & Europe Americas (AGEA), are bringing to the market products that 
greatly contribute to the energy efficiency of buildings and that make life more comfortable. Therefore, we 
are very confident about the potential of our markets, both for the construction of new buildings and in 
renovation, which is a major trend in developed markets. We want to be the best player in the market, to 
support our customers, and allow them to secure all the opportunities ahead of us.
Adopt Integrated Value Chain Approach
The value chain of architectural glass can be split into two parts: “upstream” and “downstream.” In the 
“upstream” part, natural raw materials are melted to form flat glass. Through special treatments, we add a 
variety of performance and functionality to flat glass, including heat reflection, safety, and decorativeness. 
Then in the “downstream” part of the business, large panes of glass are transformed into finished products 
that can be distributed to the final customers and installed in building facades, windows and for the decora-
tion of the home interiors.
Architectural Glass Europe & Americas Business
Business Strategies
42

Glass Business
	
The integrated glass value chain approach of AGC, with optimized balance between upstream and 
downstream activities in every market, is maximizing financial performance and assuring a higher resilience 
to the cycles of the economy, as downstream activities assure captive output to the upstream, while present-
ing less fluctuations thanks to the proximity to the final customers. Our geographical presence in several 
regions is also shielding us from the excessive volatility of economic cycles.
Quick Innovation, with a Purpose
The world is moving at a faster pace than ever, and so must do our innovation. We are improving our speed, 
to bring to the market our new ideas quickly. At the same time, we are focusing our innovation initiatives, 
to concentrate our efforts where we can generate more value for our customers and for the society.
 One of our focus areas for innovation is the field of telecommunications.
	
By applying our experience in glass technology, we can treat the glass surfaces to control the transmis-
sion of electromagnetic signals. Depending on the needs of the customers, we can transform a window into 
a perfect barrier to 4G and 5G radio waves, or a transparent gateway, or even an amplifier of signal. We 
recently launched the “WAVETHRU” service, which is an aftermarket service to address the stock of win-
dows already installed.
Become a Leader in Sustainability
To contribute to a carbon-neutral society, we are taking major steps to reduce greenhouse gas emissions, 
both through our production processes and environment-friendly products.
As a leader in glass, we want to play a major role in the evolution of the industry toward sustainability.
	
We have set up an ambitious technology road map to gradually replace fossil fuels with renewable and 
non-carbon emitting energy. Our 100-year-strong experience in glass melting is a great asset in this moment 
of challenging technological changes. AGEA will contribute strongly to the achievement of AGC’s goal to be 
carbon neutral by 2050. At the same time, we keep on enriching our product range with eco-friendly and 
energy efficient glass products.
Fiscal 2021 Review  
 Architectural Glass Europe & Americas Business
Mainly in Europe, shipments increased as economies recovered from the effect of the COVID-19 
pandemic. Further, selling prices in Europe and South America also rose markedly. In addition, the 
aforementioned revenue growth factors outweighed a decline in revenues that resulted from the sale 
of the North American Architectural Glass Business in August 2021. Consequently, revenues were 
higher than those of fiscal 2020.
1
10
CO2 emissions 
during 
manufacture
CO2 emission 
reductions during 
product service lives
	
As our products greatly contribute to the thermal 
efficiency of buildings, during the lifetime of our prod-
ucts the CO2 emissions that we contribute to avoid are 
conspicuous, many times more than the CO2 emitted 
during the production process, even with traditional 
technologies.
Realize Business Excellence
We take every day the challenge of continuously 
improving our business to make it more efficient, more 
competitive, more capable of bringing reliability and 
satisfaction to our customers. By leveraging our great 
diversity, the different nationalities, experiences, and 
ideas of our colleagues all across AGEA, we are setting up a culture of challenge, courage, and obsession 
with continuous improvement. We are inspired by AGC motto “Your Dreams, Our Challenge” and we work 
for it every day.
Business Strategies
43

Business Environment  
Strengths  
Risks
 Meeting further requirements stemming 
from climate change issues (for example, the 
need to further reduce the GHG emissions of 
float glass furnaces)
 Emergence of fierce competition as a result 
of oversupply in the region
 Expertise in developing high-performance glass products and process engineering capability, with 
world leading class energy-saving glass being a representative example
 Manufacturing capabilities from float glass, to various coating and processing technologies
 Ability to offer customers value
 Robust supply chain underpinned by trust fostered over many years
 Diverse human resources, who support the abovementioned strengths as well as our global network
Opportunities
 Growing demand for environment-friendly 
products, such as products that improve 
energy efficiency and Building integrated 
photovoltaic products
 Technological differentiation through innova-
tion in manufacturing technologies
 Window opening of buildings becoming 
potential platform to serve more 
­sophisticated society’s infrastructure by such 
solution as glass antennas
 Permeation of high-value-added products in 
growing Asian markets such as Thailand and 
Indonesia and in Oceania
Architectural Glass Asia Pacific Business
Business Issues  
Architectural Glass
 Generating cash in the Core Business
 Grow through new businesses and 
­high-value-added products
 Address climate change and achieving other 
SDGs initiatives
Business
Main Tasks
Core 
Business
Business Strategy  
Shigeki Yoshiba
President of Architectural Glass 
Asia Pacific Company
Architectural Glass Asia Pacific Company will continue to strive as the most trusted leading player in the 
architectural glass business and enhance the global collaborations of the Architectural Glass Business, by 
accelerating the planning and implementation of business strategies that reflect regional conditions in 
Japan, Asia, and Oceania. In each market, robust supply chains, stable supply capabilities, a strong market 
presence, and advanced development and technological capabilities will support our growth. We will capi-
talize on these advantages to enhance asset efficiency, improve productivity, and reduce costs even further, 
thereby making the business sounder and stronger than ever. Also, in developing the business we will 
address such trends as energy conservation, energy creation, communications, and other challenges for 
building a sustainable future as our opportunities.
Japan Business
We operate at every stage of the supply chain, from glass production to sales and installation. While fully 
utilizing production facilities that are among the largest of their kind in Japan and which are the foundations 
of our business, we capitalize on our nationwide network of glass-processing sites as well as the distribution 
networks of AGC and our customers to stably manufacture and sell high-value-added products such as 
energy-saving glass among others. Through the utilization of know-how 
gained from catering to and offering solutions for a wide range of needs, we 
are also developing products that enhance our contribution to the realization 
of a decarbonized, sustainable society. One example of these efforts is 
ThermoclineTM, which has a longer service life and is more readily recyclable 
than other types of double-glazing glass that have high thermal insulation.
Glass Business
44
Business Strategies

Another major strength is our ability to install products for various projects nationwide. These extensive 
installation capabilities not only support the existing glass business but also play a crucial role in the 
development of businesses offering such products as glass antennas and building-integrated photovoltaic 
(BIPV) products.
Asia Business
Asia and Oceania promise market growth. In these regions, we will capture not only expansion of commod-
ity needs centered in Indonesia and Thailand where we have business sites, but also permeation of the 
high-value-added products such as coated glass with the increasing emphasis on creating a low-carbon 
society. In the commodity market, thanks to customer trust fostered over many years, our ability to supply 
products stably, and an extensive sales network inside and outside the region, we will ensure that we meet 
the needs of regions with growing demand for glass. Meanwhile, we are advancing businesses in the high-
value-added products market by capitalizing on our position as the only domestic supplier of coated glass in 
Indonesia and Thailand as well as the strong presence we have established in the commodity market. In 
addition to initiatives in these two countries, we will lead efforts to expand high-value-added products 
markets in other countries. Specifically, we will conduct sales activities targeting markets in Asia, Oceania, 
and other regions while promoting the dissemination of high-value-added products through industry–gov-
ernment–academia partnerships. Also, we are helping transform existing supply chains to better serve high-
value-added products and expand their markets. One important task will be to develop collaborations in the 
technology and marketing fields with customers who distribute and install our ­products. In this way, we will 
facilitate the supply of products with even higher added value, so that the AGC Group and its customers, 
prosper altogether.
Fiscal 2021 Review  
 Architectural Glass Asia Pacific Business
As in fiscal 2020, COVID-19 affected demand in many countries. Further, the disruption to international 
logistics directly and indirectly impacted our operational management. As the economy recovered, 
however, the commodity market regained strength, and shipments increased, particularly in Indonesia. 
In Japan and Asia, utilization rates and sales prices rose year on year, while profits were up despite 
lower revenues.
Glass Business
Social Value We Will Create
Contributing to a Sustainable, More Comfortable Society 
Through the supply of glass products needed for construc-
tion, AGC has been serving society for its betterment. We 
will redouble our efforts to help realize a society that is more 
sustainable and comfortable by providing energy-saving 
solutions based on Low-E glass (double-glazing glass) and 
offering electricity generation solutions made possible by 
BIPV products. At the same time, we will create innovative 
technology to significantly reduce the GHG emissions of 
glass production while developing products and manufac-
turing methods that are well suited to recycling. We also 
strive to enhance social value by steadily pursuing improve-
ments aimed at ensuring the Company remains an organiza-
tion where diverse personnel can work safely and take pride 
in their work.
Business Strategies
45

Developing the BIPV Module Business to Advance Sustainable Construction
Yamamoto   In sustainability management, addressing climate change is one of the key theme. 
Accordingly, the AGC Group has been actively promoting energy conservation in its manufacturing 
processes. Our BIPV products, on the contrary, through creation of clean energy, would contribute to 
the realization of net-zero carbon society.
Tan
  Data shows that greenhouse gas (GHG) emissions from building construction have a 
significant impact on global climate change. Consequently, green buildings with low CO2 emissions and 
water use are attracting increasing attention. BIPV products are based on an important technology that 
can contribute greatly to the achievement of carbon-neutral, sustainable buildings through energy 
creation. Another big advantage is that, unlike ordinary solar panels, BIPV products can be freely 
designed by architects and designers. So, buildings will not lose their aesthetic appeal.
Yamamoto   Yes, that is right. On the other hand, BIPV products pose design and construction difficulties 
that differ from those of ordinary building materials. Since launching its BIPV business in Japan in 2001, 
the AGC Group has accumulated and developed a wide range of BIPV related technologies and know-
how for 20 years. The resulting competence gives the Group an advantage in BIPV products by 
enabling it to provide one-stop services encompassing design, construction, and after-sales services.
Tan
  September 2021 saw Singapore AGC Asia Pacific win its first order for photovoltaic glass, a 
BIPV product. In addition to the product earning high marks for its beneficial features, the company 
received praise for offering integrated services that are based on collaboration with AGC Inc. in Japan. 
With this in mind, we will continue sharing technical knowledge and expertise by ensuring close coop-
eration and effective communication between the two parties.
Yamamoto   BIPV which incorporates electrical functions in glass, light control glass, and other innova-
tive technologies that have hitherto not been used in buildings will fundamentally change buildings. 
Being able to lead the way in this transition is really exciting.
Tan
  Yes, I think so too. I will continue informing our business partners about the benefits 
of AGC’s progressive, sustainable technologies so that more buildings incorporate AGC products.
A Discussion between Coworkers
Glass Business
Kohei Yamamoto
Market Development Group Smart Glass Team
Japan General Division
Architectural Glass Asia Pacific Company
Kohei Yamamoto joined AGC in 2018. Drawing on his experience 
in product planning, which was acquired in the R&D department 
of an exterior wall material manufacturer, he analyzes the 
technical issues associated with introducing BIPV modules, light 
control glass, and other types of smart glass products to buildings 
and then makes proposals for improvements.
Marcus Tan
Smart Glass Division
AGC Asia Pacific Pte. Ltd.
Marcus Tan joined AGC Asia Pacific Pte. Ltd. in 2019. He 
previously worked for more than 10 years in the construc-
tion industry. A wealth of knowledge and insight allows him 
to advance the marketing and sales of BIPV modules and 
other smart glass products in the Asia Pacific region.
Business Strategies
46

Glass Business
Business Environment  
Business Issues  
Business Strategy  
Strengths  
Risks
 Increase in use of alternative technologies 
and materials to reduce burden on environ-
ment, such as GHG emissions.
 Delayed recovery of automobile production 
and sales due to the prolonged effect of the 
COVID-19 pandemic or shortage of semicon-
ductor supplies
 Major manufacturing plants in 15 countries worldwide which enable to provide high-quality products 
and services
 Comprehensive glass technologies such as coating and glass-processing as well as world-class, 
energy-saving glass production technologies
 The AGC Group’s technology development and comprehensive capabilities, which integrate glass, 
chemicals, and electronics
Automotive Glass
 Increase sales of high-value-added products and improve 
the business portfolio
 Improve profitability and asset efficiency and strengthen 
cash generation capabilities by establishing an optimal 
production system as well as by continuously implement-
ing productivity improvements and cost reduction.
Opportunities
 Business opportunities and increased 
materials-related needs stemming from 
changes in the market due to the emergence 
of the CASE* trend
 Greater demand for high-speed communica-
tions and sensing technologies that enable 
autonomous driving
 Expansion of the use of materials that con-
tribute to the electrification of automobiles
 Rising demand for vehicle interiors' comfort, 
and for larger and  more sophisticated - 
vehicle mounted touch-panel displays
Business
Main Tasks
Core 
Business
Yoshio Takegawa
President of Automotive Company
Automotive Glass Business
Amid the COVID-19 pandemic, global automobile 
production and sales decreased around the world in 
2020 and remained lackluster in 2021 due to a 
global shortage of semiconductors. Currently, the 
picture is uneven, with varying degrees of recovery in 
respective countries. Since 2020, the AGC Group has 
made efforts to improve profitability by implementing 
production system reform and fixed cost reduction 
while at the same time continuously improving pro-
ductivity. In conjunction with these efforts, we have 
accelerated the shift toward high-value-added prod-
ucts to enhance profitability and asset efficiency. 
With the aim of reducing CO2 emissions, we are 
working to improve and develop process, including conversion to highly efficient processes through employ-
ing the advantages of our proprietary technologies.
Mobility Business
In the automotive industry, advancement of change of CASE is accelerating. To capture this opportunity we 
are promoting businesses in fields where we can demonstrate our strengths—namely, displays, antennas, 
and sensors—enhancing competitiveness, and transforming into more efficient businesses.
	
With the increasing incorporation of IT into automobiles, demand is rising for car-mounted touch-panel 
displays that are larger and more complexly shaped and which offer more-advanced performance. In response, 
the AGC Group has developed the world’s first cover glass for car-mounted displays with complex three-
dimensional shapes. As well as meeting the technical specifications of such displays, this product realizes the 
high degree of design flexibility expected of glass and the level of safety needed for automotive interiors. Thanks 
to these attributes, the product has claimed a large market share centered on high-end European cars.
Automotive Glass Business
Mobility
 Capture business opportunities by anticipating market 
changes driven by CASE trend.
 Improve profitability by strengthening domestic opera-
tions and by start manufacturing cover glass for car-
mounted displays at new plant in China.
Strategic 
Business
Global Number of Automobiles  
Produced (Estimate)
(Millions of units)
 Europe 
 Japan 
 China 
 Other Asian countries and regions
 North America 
 Other
* Created based on IHS data (as of December 31, 2021)
2023
2019
2020
2021
2022
2025
2024
0
25
50
75
100
* Connected, autonomous, shared & service, and electric
Business Strategies
47

Glass Business
	
In addition, we are accelerating the development and commercialization of important technologies that 
underpin autonomous driving. Specifically, we are developing fundamental technologies for antennas whose 
compatibility with 5G networks and other high-speed communications that enables the exchange of various 
informa­tion with external data servers and other entities. Other priority commercialization initiatives include 
our development of glass with optimal transparency in the wavelength range used by autonomous-driving 
sensors.
Fiscal 2021 Review  
 Automotive Glass Business
Although shortages of semiconductors and other 
components impacted automobile production, 
business results surpassed those of fiscal 2020, 
when shipments fell sharply due to the COVID-
19 pandemic.
 Mobility Business
Business results recovered from the pandemic-
driven slump of fiscal 2020 supported by steady 
increase of shipments. To meet future growth in 
demand, we established a new manufacturing 
plant in China for cover glass for car-mounted 
displays, which started up mass production in 
fiscal 2022.
Social Value We Will Create
Responding to Climate Change by Providing Low-E Eco-Glass 
Our Low-E eco-glass ensures the temperature inside vehicles 
is comfortable all year round. In summer, the glass keeps 
vehicle cabin cool by blocking solar radiation heat , while in 
winter it keeps the cabin warm by preventing  the escape of 
internal heat. By reducing the need to use air-conditioners, 
eco-glass improves the fuel efficiency of internal combustion 
engine vehicles—which lowers CO2 emissions—and extends 
the range of electric vehicles. Furthermore, our product has 
the potential to reduce the need for sunroof shades thus 
enabling lighter vehicles at a lower cost.
Transforming Vehicle Windows into a New Advertising Medium 
The projection of advertisements onto the side windows of taxi is transforming automotive window 
glass into a new medium for disseminating information. AGC’s GlasceneTM transparent glass screens 
have been adopted for a taxi-window-based mobile signage 
service, THE TOKYO MOBILITY GALLERY Canvas, which was 
launched in May 2021 by News Technology Inc. and S.RIDE 
Inc. Automotive side window glass of taxi will enable to 
project advertisement as new medium for  
disseminating information during idling.
 To view a video of GlasceneTM, please visit the website below.
https://www.youtube.com/watch?v=wkPHkJ9rQNU
Contribute to Strengthen the AGC Group’s 
Competitiveness from the Sales Front Line
In 2019, I joined AGC In-Vehicle Design Glass Europe 
GmbH (AIEU), an AGC subsidiary engaged in the sale and 
marketing of cover glass for car-mounted displays in 
continental Europe.
	
Cover glass for car-mounted displays has an important 
part to play in the major shift toward CASE vehicles that is 
underway in the automotive industry, and the market for 
these products is likely to grow even more vigorously in the 
future. By combining various original technologies, the AGC 
Group became the first company in the world to successfully 
develop and manufacture cover glass, which is essential for car-mounted displays. As well being as 
able to ensure the advanced levels of safety essential for automotive components, the Group has 
robust patents related to a range of critical functions for cover glass, including visibility, antifouling, 
and abrasion resistance. Moreover, the Group has established a system that enables flexible adapta-
tion to customers’ design requirements. Made of DragontrailTM glass, AIEU’s mainstay premium-
quality cover glass for car-mounted displays has established an excellent reputation among major 
European automotive manufacturers.
	
In ensuring that the AGC Group retains a lead in this market, AIEU must rapidly identify emerging 
business opportunities for automotive display cover glass in Europe and share them within the 
Group. By conducting market research and competitor analysis and reporting on the latest customer 
needs so that they can be reflected in R&D, frontline sales personnel will ensure the Group always 
offers solutions that are ahead of the times. Going forward, we will also further strengthen relation-
ships with customers, evolving into an entity that creates innovations in partnership with them.
Robin Lendel
AGC In-Vehicle Design Glass Europe 
GmbH (AIEU)
In-Vehicle Design Glass Division
Mobility General Division
A Message from an Employee
Business Strategies
48

Electronics Business
Overview  
The Display Business has the second-largest 
shares of the global markets for glass substrates 
for thin-film-transistor (TFT) liquid crystal dis-
plays (LCD) and glass substrates for organic 
light-emitting diodes (OLED). We are further 
heightening our global competitiveness through 
the use of proprietary manufacturing methods 
and advanced production technologies. At the 
same time, we are focusing efforts on develop-
ment aimed at next-generation display devices.
Main Products  
Glass substrates for TFT LCD and glass sub-
strates for OLED
Overview  
Concentrating on the development of new 
applications for specialty glass that take advan-
tage of its distinctive thinness, lightness, and 
strength, we are constantly adding to our 
product lineup, which includes cover glass for 
smartphones, tablet computers, and other 
electronic devices as well as glass substrates for 
solar cells and touch-panel displays.
Main Products  
Specialty glass for chemical strengthening and 
high-quality soda-lime glass
Overview  
Such optoelectronic materials as 
infrared ray-absorbing glass filters 
for smartphones and digital cam-
eras are the mainstays of this 
business.
Main Products  
High refractive index glass sub-
strates, diffractive optical elements 
and glass diffusers, glass ceramic 
substrates, optical planar devices, 
infrared ray-absorbing glass filters, 
aspherical glass lenses, and micro-
lens arrays
Overview  
Primarily manufacturing  
semiconductor-related products,  
this business offers synthetic fused 
silica glass, which has established  
a leading market share; extreme 
ultraviolet (EUV) lithography photo-
mask blanks; high-purity silicon 
carbide (SiC) jigs; and chemical 
mechanical polishing (CMP) slurries.
Main Products  
Synthetic fused silica glass, syn-
thetic quartz, SiC, CMP slurries, 
EUV lithography photomask blanks, 
glass frit, glass pastes, and low-
temperature hermetic sealing parts
Overview  
Catering to markets with strong 
growth potential, this business 
manufactures copper-clad lami-
nates, which are used as printed 
circuit board materials for high-
performance applications, such as 
advanced driver-assistance systems 
and 5G systems.
Main Products  
Copper-clad laminates and indus-
trial polytetrafluoroethylene (PTFE) 
composite derivatives
Display Business
Electronic Materials Business
Applied glass materials
Display glass
Optoelectronic materials
Semiconductor-related products
Printed circuit board materials
Companywide 
net sales 
breakdown
17%
Companywide 
operating profit 
breakdown
18%
 
Fiscal 2021 
Performance
Net sales
¥305.0 billion
Operating 
profit
¥36.8 billion
Under the Electronics Company’s vision “STAY in FRONT with 
SDGs,” we will continue to contribute to a sustainable society 
as a leading supplier of differentiated materials and solutions.
Business Strategies
49

Display Business
In recent years, demand for glass substrates for liquid crystal dis-
plays (LCD) has been growing steadily as television screens have 
become bigger. Going forward, China’s market is expected to see 
particularly robust demand growth and the AGC Group is proac-
tively developing its supply system in the country accordingly. 
Given the likelihood of a marked increase in demand for large 
11th-generation thin-film-transistor (TFT) LCD glass substrates, we 
have built a furnace dedicated to their manufacture, which began 
mass production in 2019. Thanks to this new facility, we are 
steadily capturing the growing demand in China’s market. For 
11th-generation TFT-LCD glass substrates, we will continue 
increasing our supply capacity while improving productivity with 
the aim of enhancing profitability and asset efficiency. Further, by 
maintaining and developing strong relationships with major 
Chinese manufacturers and introducing technologies that 
heighten carbon efficiency, we will establish business foundations 
that remain stable over the long term. In addition, sales of our 
specialty glass for displays—which boasts outstanding strength 
and scratch resistance—are expected to grow steadily as smart-
phone unit sales increase. Also, demand remains high for products 
with advanced functionality, such as strength, scratch resistance, 
and compatibility with the 5G next-generation telecommunica-
tions standard. Therefore, the business will focus on developing 
new products to meet these needs and expand aggressively.
Electronic Materials Business
As society rapidly digitalizes, demand for higher-performance, more-compact electronic devices is rapidly 
growing. Meeting this demand requires miniaturization of semiconductor chip circuits, which increases 
computational process speeds, data capacity, and integration. Against this backdrop, EUV lithography 
Electronics Business
Business Environment  
Business Issues  
Business Strategy  
Strengths  
Risks
 Necessity of measures to reduce GHG 
emissions
 Market volatility in the electronics industry
 Marketing capabilities and ability to offer customers solutions that include technical support
 Ability to develop businesses globally
 Production technology for the float method, which is suited to the mass production of 
large-sized glass
 One-stop technological capabilities thanks to an integrated manufacturing system that begins from 
material design
Display
Electronics
 Respond to the further  demand increase in the 
Chinese market to build a long-term, stable 
business foundation
 Expand value-added products including EUV 
lithography photomask blanks
 Constantly generate new businesses
Opportunities
 Higher demand for infrastructure-related 
products indispensable for a data-driven 
society enabled by big data
 Growth in demand for products essential for 
the safety, security, and comfort of autono-
mous driving-based mobility
 Increase in demand for semiconductor-
related products indispensable for industry
Business
Main Tasks
Core 
Business
Strategic 
Business
Kenzo Moriyama
President of Electronics Company
LCD Glass Demand by Generation 
(Million square meters per year)
 10th and 11th generations 
 8th generation 
 Other
Source: AGC estimate
2025
2018 2019
2015 2016 2017
2020 2021 2022 2023 2024
0
100
200
300
400
500
600
700
29%
52%
Forecast
LCD Glass Demand by Region 
(Million square meters per year)
 China 
 Other  Source: AGC estimate
2025
2018 2019
2015 2016 2017
2020 2021 2022 2023 2024
0
100
200
300
400
500
600
700
26%
64%
77%
Forecast
Business Strategies
50

Electronics Business
technology has attracted attention because it enables further 
miniaturization. From early in the first decade of the 2000s, the 
AGC Group began developing photomask blanks, which are 
processing materials needed for semiconductor production that 
uses EUV lithography technology. Thanks to these efforts, we 
successfully met exacting quality standards and started up pro-
duction in 2017. Since then, we have expanded our mass pro-
duction system for EUV lithography photomask blanks in step 
with market growth. Going forward, we will double our current 
production capacity by 2024, thereby lifting net sales above 
¥40.0 billion in fiscal 2025. In addition to EUV lithography  
photomask blanks, we will accelerate the development of new 
high-value-added products, thus realizing steady business growth 
in the field of semiconductor-related products.
	
As for optoelectronic materials, demand is steadily growing 
for glass filters that absorb infrared light and which are compat-
ible with the multiple-lens, high-performance cameras of smart-
phones. Going forward, we will proactively develop new products 
for next-generation devices that promise to follow on from the 
success of smartphones and to form significant new markets. For 
example, we will develop glass substrates for augmented reality 
and mixed-reality eyewear devices. In addition, we will make the 
businesses—which include printed circuit board materials busi-
nesses—acquired from U.S. companies Park Electrochemical Corp. 
and Taconic in 2018 and 2019, respectively, to expand operations that cater to the copper-clad laminates 
market. These laminates have significant growth potential for high-performance applications, such as 
advanced driver-assistance systems and 5G systems.
Fiscal 2021 Performance  
 Display Business
Although shipments of glass substrates for 
displays declined, shipments of specialty glass for 
displays increased. Meanwhile, we steadily 
started up a facility for 11th-generation TFT-LCD 
glass substrates, thereby further developing 
business foundations that cater to the growing 
demand for these products in China’s market.
 Electronic Materials Business
Shipments of printed circuit board materials 
decreased due to such factors as trade  
friction between the United States and China. 
However, the business saw a rise in shipments  
of semiconductor-related products, such as EUV 
lithography photomask blanks, and optoelec-
tronic materials.
Heightening the AGC Group’s Presence in the 
Semiconductor Field
In 2003, I joined AGC Electronics America, where I am 
responsible for promoting sales of materials for semicon-
ductor wafer processing in the United States and Europe. In 
this role, I draw on my contacts and experience built up 
when I worked at a vendor of semiconductor manufactur-
ing equipment.
	
My mission is to build supply chains that meet the 
needs of customers both in terms of product quality and 
distribution by connecting suppliers, manufacturers, and 
various other companies in the semiconductor industry. We not only sell materials and components 
for semiconductor manufacturing but also provide many other types of support. For example, we 
assist with the incorporation of materials and processes vital for semiconductor fabrication by pro-
viding technical know-how to maximize process performance and yields. What is more, we arrange 
for the provision of related consumable items by collaborating with various material suppliers and 
equipment manufacturers. Further, we work with R&D teams in Japan to develop new products and 
processes reflecting customer needs for future wafer fabrication technologies.
	
Demand for semiconductors is increasing as next-generation technologies such as the Internet 
of Things (IoT), AI, and advanced driver-assistance systems become more widespread. On the other 
hand, stiff competition is a feature of the semiconductor industry, and products must be updated 
constantly to ensure differentiated quality, performance, and pricing. For these reasons, I want to 
create innovative technologies and businesses by interacting with as many people as possible and 
exploring new opportunities.
	
For more than 20 years, I have experienced the remarkable development of the semiconductor 
field. I will help the AGC Group heighten its presence in this field by collaborating with the R&D 
teams in Japan and contributing to the development of new products.
Deepak Kumar
Business Development
AGC Electronics America
A Message from an Employee
Social Value We Will Create
Contributing to a Sustainable Society through Differentiated Material Solutions 
Many of the new devices that are expected to become common, 
such as 3D sensors and augmented reality and mixed-reality eye-
wear devices, include optical materials and components. Based on 
optoelectronic technologies fostered for cameras, the Electronics 
Business will develop new types of glass with high refractive 
indexes and high transmission for augmented reality and mixed-
reality eyewear devices and other leading-edge equipment.
Net Sales of AGC’s EUV 
Lithography Photomask Blanks
Approx.
1.5 times
2019
2020
2021
2022
2023
2025
At least ¥40 billion
Ramping Up Production 
Capacity of EUV Lithography 
Photomask Blanks
2018
2020
2022
2024
Forecast
Forecast
Approx.
1.4 times
Approx.
1.4 times
Approx.
3 times
Approx.
2 times
Approx.
2 times
(FY)
Business Strategies
51

Chemicals Business
Overview  
The characteristics of fluorine atoms give organic fluorine compounds extremely 
useful physical and chemical properties, including excellent heat and chemical 
resistance as well as water and oil repellency. We leverage these properties to 
create many different high-performance products, such as Fluon® ETFE, which 
boasts the largest share of the global market for fluoropolymers. Beyond being 
used in the manufacture of a wide range of products—including automobiles, 
aircraft, semiconductors, construction materials, electronics, and 
­air-conditioners—our products play an important role in the creation of social 
infrastructure, urban spaces, and homes that are safe and comfortable.
Main Products  
Fluoropolymers, fluoroelastomers, fluoropolymer films, transparent amor-
phous fluoropolymers, fluoropolymer resins for coatings, water and oil 
repellents, fluorine-based electrolyte polymers for fuel cells, fluoropolymer 
ion-exchange membranes, fluorinated refrigerant gases, fluorinated 
­solvents, fluorosurfactants, and fluorinated coating agents
Chlor-Alkali and Urethane Business
Fluorochemicals & Specialty Chemicals Business
Overview  
We will contribute to the society by stably 
supplying essential products, such as Caustic 
Soda and PVC (Polyvinyl Chloride) that are 
produced by electrolysis of Salt brain, to a 
wide range of industries.
Main Products  
Caustic soda, caustic potash, potassium 
carbonate, hydrochloric acid, sodium hypo-
chlorite, liquid chlorine, VCM (vinyl chloride 
monomer), polyvinyl chloride, tri-chloroeth-
ylene, tetra-chloroethylene, methyl chloride, 
methylene chloride, chloroform, and 
epichlorohydrin
Urethane Business
Chlor-Alkali Business
Overview  
We manufacture urethane-related products, which are used as materials for 
a variety of products making lives more comfortable, i.e., insulating materi-
als, automotive seat cushions. Polypropylene glycol (PPG), for example, is an 
essential raw material in polyurethane manufacturing. Our integrated 
production line for PPG begins with PO (propylene oxide). This enables us 
to provide a stable supply of high-quality PPG with less impurities. The AGC 
Group also helps lower environmental burden by providing HFO (hydrofluo-
roolefin) products that can be used as new, environment-friendly refriger-
ants and foaming agents.
Main Products  
Propylene oxide, propylene glycol, and polyol
Companywide 
net sales 
breakdown
36%
Companywide 
operating profit 
breakdown
67%
 
Fiscal 2021 
Performance
Net sales
 ¥630.8 billion
Operating profit
¥138.8 billion
Our Chemistry for a Blue Planet vision entails creating a safe, 
secure, comfortable, and environmentally friendly world with 
chemical technology. While realizing this vision, we will also 
­sustain growth.
Business Strategies
52

Chemicals Business
Business Environment  
Business Issues  
Strengths  
Risks
Chlor-Alkali and Urethane
 Trend toward carbon neutrality for electricity con-
sumed in electrolysis
Fluorochemicals & Specialty Chemicals
 Trend toward the stricter regulation of 
fluorochemicals
Life Science
 Shortage of personnel due to the expansion of the 
CDMO market
 Shortage of materials
Chlor-Alkali and Urethane
 Strong market presence in 
Southeast Asia and a sales and 
distribution network built up over 
many years
 Cooperation among sites in 
Indonesia, Thailand, and Vietnam
Fluorochemicals &  
Specialty Chemicals
 Development of mass production 
technologies and high-performance 
materials based on proprietary 
organic synthesis technology
 Global operation of manufactur-
ing, marketing, and technical 
service sites
Life Science
 Globally integrated network that 
meets customer needs through 
sites in Japan, Europe, and the 
United States
 Extensive inspection and commer-
cial pharmaceutical manufacturing 
experience based on advanced 
quality assurance and technologi-
cal development capabilities
 Ability to use leading-edge tech-
nologies to resolve manufacturing 
and development issues
Chlor-Alkali and Urethane
Fluorochemicals & 
Specialty Chemicals
Life Science
 Strengthen the foundation of businesses in Southeast Asia 
by expanding facilities in Thailand and Indonesia
 Develop products that meet customers’ increasingly 
advanced needs and capture niche demand globally
 Develop products and process technologies in anticipation 
of environmental regulations and turn them into business 
opportunities
 Expand businesses through timely investments
 Achieve high growth by leveraging global operations and 
flexible technological capabilities
Opportunities
Chlor-Alkali and Urethane
 Growth of the Southeast Asian market
Fluorochemicals & Specialty Chemicals
 Catering to needs related to energy conversion, 
including water electrolysis and storage batteries
 Catering to demand for ultra-high-frequency sub-
strates and other products required for 5G and 6G 
communications
Life Science
 Meeting the needs of a health-focused,  
long-lived society
 Increase in the contracting of pharmaceutical 
manufacturing
Business
Main Tasks
Core 
Businesses
Strategic 
Business
Overview  
Worldwide, we are expanding contract development and manufacturing organiza-
tions (CDMO), which develop processes for and manufacture pharmaceutical and 
agrochemical intermediates and active ingredients. In addition to synthetic pharma-
ceutical CDMO that leverage organic synthesis technology fostered in the fluoro-
products business, we are focusing on CDMO for biopharmaceuticals, demand for 
which has grown globally in recent years. With business sites in Japan, Europe, and 
the United States, we will contribute to the health, peace of mind, and comfort of 
people around the world by providing high-quality services that meet the needs of 
customers in each market.
Main Products  
Synthetic pharmaceutical and agrochemical intermediates and active ingredients, 
biopharmaceuticals, and fine silica
Life Science Business
Business Strategies
53

Chemicals Business
burden, including the FORBLUE™ FLEMION™ ion-exchange membrane for brine electrolysis and 
AMOLEA™ next-generation environment-friendly refrigerants and solvents.
	
We will help keep society secure and sustainable by providing useful fluorochemicals that are safe 
and reliable. In manufacturing processes, we will reduce substances of concern and develop technolo-
gies that enable collection, recycling, and the use of alternative substances. At the same time, the busi-
ness will actively build recycling systems for products that have reached the end of their service lives.
Life Science Business
The global CDMO market is expected to continue growing over the medium to long term due to an 
increasing elderly population, advances in medicine, and the contracting of pharmaceutical manufac-
turing by pharmaceutical companies. In this market environment, AGC is expanding businesses on a 
global scale by building on the customer trust cultivated by and the track record.
	
In regard to synthetic pharmaceutical and agrochemical CDMO, AGC is achieving differentiation 
through organic synthesis process development capabilities and high productivity, both of which are 
backed by advanced organic synthesis technology. With respect to biopharmaceutical CDMO, we were 
the first to market single-use bioreactors for mammalian cell cultures, which are suited to small-lot pro-
duction and have been seeing increased demand due to progress in the rare disease field. We are 
focused on building a globally integrated development and production network that is based in Japan, 
Europe, and the United States and which can flexibly meet customer needs. In addition to cell and gene 
therapy, on which we have already begun working, we will continue taking on the challenge of develop-
ing regenerative medicine and other new technologies that are still in the early stages of development.
	
As the CDMO market expands, there are concerns about shortages of biopharmaceutical culture 
media and other equipment and materials. In addressing such issues, the Seattle-based head office of 
AGC Biologics optimizes the operations of the biopharmaceutical CDMO business by conducting 
integrated management of global demand and facilitating resource sharing among sites. Also, to 
secure sufficient talented personnel for business expansion, AGC Biologics will continue hiring glob-
ally, utilizing shared services, and transferring personnel between sites.
Business Strategy  
Masao Nemoto
President of Chemicals Company
Chlor-Alkali and Urethane Business
Having identified East Japan and Southeast Asia as key markets, the Chlor-Alkali Business is strength-
ening customer services and competitiveness through a regional concentration strategy.
	
In Japan, the Chlor-Alkali Business will contribute to customers and society by providing stable supplies 
of various essential products, such as caustic soda, sodium bicarbonate, and sodium hypochlorite, which is 
a disinfectant for drinking water. Meanwhile, the Urethane Business will transform by shifting its product 
mix from general-purpose products toward specialty offerings. In this way, this business will provide new 
solutions that assist customers in addressing environmental burden reduction and other tasks.
	
Overseas, we will focus on advancing businesses in Southeast Asia, where strong economic 
growth is expected to continue. We have manufacturing sites in Indonesia, Thailand, and Vietnam, 
and to meet the region’s burgeoning demand, we will continue increasing production capacity. By 
providing stable supplies of products, we will help expand the social infrastructure and enhance the 
regional economies and living conditions of emerging countries.
	
Also, through the utilization of in-house-developed ion-exchange membrane FORBLUE™ 
FLEMION™ and new production technologies, the Chlor-Alkali Business will adopt energy-saving 
processes that have world-leading levels of nontoxicity and environment friendliness, thereby continu-
ing to help reduce GHG emissions and improve the global environment.
Fluorochemicals & Specialty Chemicals Business
The Fluorochemicals & Specialty Chemicals Business develops differentiated, high-performance products 
by leveraging the advantages of the AGC Group’s proprietary organic synthesis technology. At the same 
time, the business pursues a global niche top strategy, which focuses strongly on clearly defined targets 
to secure large market shares in niche fields. To date, the priority fields we have targeted include aero-
space, transportation equipment, and semiconductors—all of which require advanced performance and 
uncompromising quality. By using our technological prowess to meet the needs of customers in such 
leading-edge fields, we will heighten our competitiveness and profitability. Fluorinated materials, which 
have low transmission loss, are attracting attention due to their suitability for 5G communications sys-
tems and other next-generation high-speed communications equipment that are expected to become 
ubiquitous. In this field, the Group will focus on developing high-performance products that meet 
customer needs. In addition, we will increase supplies of products that help reduce environmental 
Life Science Net Sales
(Billions of yen)
200.0
115.2
135.0
155.0
61.7
44.9
79.9
2023
2019
2018
2020
2021
2022
2025
0
50
100
150
200
Production Capacity of 
Biopharmaceutical CDMO
(kL)
 Single-use-bag bioreactors 
 Single-use-system bioreactors
2023
2018
2019
2020
2021
0
40
80
120
160
Aiming to reach target one 
year ahead of schedule
Forecast
Forecast
(FY)
Business Strategies
54

Social Value We Will Create
Increasing the Supply of Products That Help Lower Environmental Burden 
The Chemicals Business is advancing initiatives aimed at protecting the environment and real-
izing a comfortable society that is safe and reassuring. Particularly in the field of environmental 
preservation, we are addressing the issue of climate change by increasing the supply of prod-
ucts with reduced environmental impact. These offerings include the FORBLUE™ FLEMION™ 
ion-exchange membrane used for brine electrolysis and AMOLEA™ next-generation  
environment-friendly refrigerants and solvents.
FORBLUE™ FLEMION™ 
FORBLUE™ FLEMION™ is a fluorinated cation-exchange 
membrane developed by AGC for the highly energy-
efficient manufacture of caustic soda, caustic potash, 
chlorine, and hydrogen. This product reduces environ-
mental impact because, in comparison with other prod-
ucts, it enables one of the lowest levels of power 
consumption in the world.
AMOLEA™ 
In response to global warming, burgeoning demand for 
new environment-friendly refrigerants and solvents with 
extremely low global warming potential is likely. By 
supplying the next-generation environment-friendly 
refrigerants and solvents of the AMOLEA™ series, we 
will help mitigate global warming.
Chemicals Business
Pursuing Digital Transformation That Can Be Used 
Proactively in Frontline Operations
Before joining AGC in 2021, I worked at an engineering 
company, where I first experienced process design for refin-
eries and other oil & gas facilities and then experienced 
about two years of in-house system development. Since 
joining AGC, I have been working in the Digital 
Transformation Office, where I am responsible for digitaliz-
ing a wide range of activities in the Chemicals Company. 
For example, I am engaged in introducing an infrastructure 
system for data collection and storage as well as a system 
for utilization of the accumulated data.
	
Aiming to realize digital transformation, AGC is taking progressive measures. In 2020, the 
Company developed CHOPIN, an integrated management system for chemical plant operations. 
The introduction of this system has achieved cost reductions of more than ¥100.0 million per year 
at the Chiba Plant. However, this is only the first step. If digital technology is introduced and effec-
tive use of data is promoted, there is still room for growth.
	
My mission is to show all employees, including management, how data can be used to create 
value. Also, data utilization is particularly important at manufacturing plant, which are the core of 
AGC. For this reason, I try to visit manufacturing plant as much as possible, find out the issues, and 
propose what can be achieved through data utilization. Once the value of data is understood, per-
sonnel become motivated to incorporate more digital technologies. For the next step, I will concen-
trate on education to increase talent who can wield two swords those who possess both knowledge 
of manufacturing operations and advanced digital technologies. It will accelerate data utilization for 
the creation of additional value.
Kosuke Nakai
Applied Technology Group
Digital Transformation Office
Company Strategy General Division
Chemicals Company
A Message from an Employee
Fiscal 2021 Performance  
 Chlor-Alkali and Urethane Business
International market prices for vinyl chloride products soared due 
to cold weather and hurricanes in the United States and power 
restrictions in China. As a result, the sales price of PVC rose in 
Southeast Asia, leading to improved business results compared 
with those of fiscal 2020.
 Fluorochemicals & Specialty Chemicals Business
The business surpassed its fiscal 2020 performance thanks to a 
recovery in shipments of fluorinated products for automobiles—
which had been sluggish due to the COVID-19 pandemic—and to 
signs of a pickup in shipments of fluorinated products for aircraft 
from the third quarter of fiscal 2021 onward.
 Life Science Business
Synthetic pharmaceutical and agrochemical CDMO as well as 
biopharmaceutical CDMO saw increases in contracts. Also, bio-
pharmaceutical CDMO received contracts for products related to 
COVID-19. Consequently, business results exceeded those of 
fiscal 2020.
Business Strategies
55

Business Environment  
Strengths  
 Extensive lineup of products with reliable 
quality accumulated since we began man-
ufacturing refractory bricks for glass fur-
naces in 1916
 Proactive efforts to develop new materials, 
propose applications, design solutions, 
provide construction engineering, and 
support customers’ operations
Risk
 Growing expectations that industries with 
high-temperature equipment will help 
realize a carbon-free society by converting 
their manufacturing processes
Opportunity
 Stability of the refractory market and the 
potential of high-performance ceramics
Ceramics Business
We aim to contribute energy-saving & resources-saving, and high 
levels of efficiency to protect the global environment through 
ceramics materials and products of AGC Ceramics Co., Ltd., for 
the supply to high-temperature equipment as well as functional 
products that utilize inorganic materials.
Overview  
Though seldom seen, our mainstay products play a crucial role in the infrastructure of daily life. As well as 
being integral to the facilities of companies in such key industries as iron, cement, and glass manufacturing, 
AGC products are essential for the inner walls of power plants that have boilers and municipal waste 
incinerators. Moreover, we offer an array of high-performance products that save energy and resources 
and improve efficiency.
Main Products  
Fused cast refractories, monolithic refractories, bonded refractories, fine ceramics, and a ceramics molding 
agent for 3D printers
Ceramics Business
Business Strategy  
Masaru Ota
President of AGC Ceramics Co., Ltd.
We pursue an “ambidextrous” approach to business management that 
is based on refractories and high-performance ceramics. To enable 
appropriate allocation of management resources, we will revise and 
clarify our business portfolio.
	
Our aim is to further exploit the refractory market, whose firmness 
reflects the indispensability of these products in modern society. We not 
only develop, manufacture, and sell products as a manufacturer but also 
focus on supporting customers’ facilities throughout their life cycles by 
Fused cast refractories for glass-melting 
furnace crowns
Monolithic refractory for industrial 
furnaces
Fine ceramics with excellent heat and corro-
sion resistance for the iron, aluminum, and 
electronics fields
designing solutions, providing construction engineering, and supporting 
operations. The business will increase the profitability of production by 
introducing smart manufacturing processes to factories. At the same 
time, we will collaborate with our sites in China and our global network 
to strengthen supply chains.
	
Meanwhile, the efforts of the Ceramics Business to explore and 
create new value in the field of high-performance ceramics, which 
includes fine ceramics and 3D molding (additive manufacturing), prom-
ise to generate significant growth. To accelerate its progress, the busi-
ness will utilize all of the AGC Group’s resources and promote open 
innovation.
	
Increasingly, industries that use high-temperature equipment are 
expected to contribute to the creation of a sustainable society by inno-
vating their manufacturing processes. By offering refractories suited to 
new processes and providing peripheral engineering services, we will 
benefit society and turn changes into opportunities for growth.
	
With quality, integrity, and pride as watchwords, we are committed 
to being a dependable partner for our customers.
Business Strategies
56

New Business Creation  
Initiatives of the Business Development Division
Through the tireless pursuit of ambitious innovation from a far-
sighted perspective, the Business Development Division will propose 
and advance new businesses, thereby enabling the AGC Group to real-
ize sustainable business growth and address social issues.
collaborates not only with various organizations in the Group—such as in-house companies and 
the Technology General Division—but also with external partners, including educational institu-
tions and venture capital companies. Moreover, the division develops new businesses on a global 
scale by partnering with AGC Business Development Americas and AGC (China) Holdings Inc., 
the Group’s sites in the United States and China, respectively.
 Achievements and Outlook
Through the aforementioned activities, the Business Development Division has incubated new 
Strategic Businesses and then transferred their management to in-house companies. Currently, 
these businesses manufacture such products as biopharmaceuticals, EUV lithography photomask 
blanks, cover glass for car-mounted displays, and copper-clad laminate substrates for high-speed 
communications. At the same time, the division is proposing and advancing new businesses by 
undertaking market research and analysis and incubation for projects related to the Electronics, 
Mobility, and Life Science businesses, which are the Group’s Strategic Businesses. Through the 
tireless pursuit of ambitious innovation from a far-sighted perspective, the Business Development 
Division will propose and advance new businesses, thereby enabling the AGC Group to realize 
sustainable business growth and address social issues.
 Missions of the Business Development Division
In 2011, the Business Development Division was established as a dedicated organization for the 
creation of businesses that allow the AGC Group to take maximum advantage of its comprehen-
sive strengths in business areas and regions with considerable growth potential. The division has 
two missions: new business creation and human resource development. Further, the purpose of 
the former is to create businesses that will sustain the Group’s growth. To this end, the business 
creation process includes exploring ideas for new businesses and analyzing the feasibility of 
commercialization (market research and analysis), developing businesses for incorporation into 
an in-house company (incubation), and handing over business management to in-house compa-
nies (transfer). As for the development of human resources, through flexible assignment the 
Business Development Division increases the number of personnel who gain experience of busi-
ness creation. This approach simultaneously realizes the “incubation” of businesses and person-
nel and fosters numerous in-house entrepreneurs, who we refer to as “intrepreneurs.”
 Collaboration with Business Partners
As well as analyzing macro trends to discover promising ideas, the Business Development 
Division analyzes the commercialization of projects that would be difficult for in-house compa-
nies to analyze. In preparing proposals for and advancing new businesses, the division 
Marketing
Exploring ideas for new 
businesses and analyzing the 
feasibility of 
commercialization
Incubation
Developing businesses for 
incorporation into in-house 
companies or business 
divisions
Transfer
Handing over business 
­management to in-house 
companies
Commercialization
Flexible assignment of personnel
1 New Business Creation
2 Fostering of In-House Entrepreneurs  
(“Intrepreneurs”)
Two Missions
Business Strategies
57

59	 Our Value Chain Mapping
60	 Technology and Innovation
66	 Human Resources
73	 The Environment
80	 Corporate Governance
86	 Board of Directors, Audit & Supervisory 
Board Members, and Executive Officers 
89	 Discussion between the Chairperson  
of the Board and the CEO
Strategies for Our 
Management Foundations
Here, we focus on initiatives that are cementing  
our management foundations.
58
Strategies for Our Management 
Foundations

R&D
 Development of products with new 
environmental and social value
 Environmental impact assessment
 Appropriate use of intellectual property
 Quality assurance
 New technologies
 After Use
 Circular economy
 Cullet
 Procurement
Green procurement
Conflict minerals policy
Protection of human rights
Conservation of natural 
capital
Partnerships
 Use of sold products
 Assurance of product safety  
during use
 Reduction of environmental  
impact from product use
 Sales
 Fair trade and competition
 Prevention of corruption
 Reduction of environmental 
impact through energy saving 
and technological innovation
 Resource circulation
 Water security
 Prevention of environmental 
pollution
 Occupational health and safety
 Prevention of accidents and 
incidents
 Stable supplies
 Transportation
 Enhancement of 
transportation density
 Modal shift
 Cooperative  
transportation
Through its value chain, the AGC Group will continue initiatives that both enhance long-term corporate value and address social issues.
 Manufacturing
59
Strategies for Our Management 
Foundations
Our Value Chain Mapping

• Planning Division
• Innovative Technology 
Laboratories
• Materials Integration 
Laboratories
• Production Technology 
Division
• Float Technology Promotion 
Division
Technology and Innovation
The AGC Group’s Technological Foundations
Since its founding in 1907, the AGC Group has placed particular emphasis on differentiated 
materials and technologies. By using these materials and technologies together, we have created 
an array of new products. Moreover, we have tirelessly honed the advanced production tech-
nologies needed to manufacture such products. Over the course of our history, we have devel-
oped core technologies—including materials technologies, functional design, and production 
technologies—for a wide range of business fields, such as glass, electronics, chemicals, and 
ceramics. Further, by combining these core technologies with our common basic technologies, 
including analysis, evaluation, and simulation technologies, we are able to provide high-value-
added materials and solutions that cannot be achieved with a single technology. To always be 
the company our customers call on first as well as an everyday essential part of our world, we 
continue to take on the challenge of creating new value with our sights set on the future needs 
of customers and a sustainable society.
For information on the AGC Group’s technology development, please visit the website below.
	 https://www.agc.com/en/innovation/index.html
 
Strategy and Structure of Technology Development
The AGC Group’s Technology General Division advances technology development and innovation 
with the aim of creating value through materials and solutions. This division promotes ambidex-
trous development, which heightens the competitiveness of existing businesses through 
“right-handed” development while creating new businesses and the future through “left-
handed” development. In these efforts, the division works in close collaboration with corporate 
divisions, such as the Intellectual Property, Business Development, and Productivity Innovation 
divisions, as well as a range of other divisions, including the technology development divisions of 
in-house companies.
	
Furthermore, we have established a seamless technology development system by consolidating 
all technology development functions—from fundamental technologies through to materials devel-
opment and mass production processes and equipment—at the AGC Yokohama Technical Center.
	
Also, to accelerate value creation even further, we are actively promoting open innovation. 
Specifically, in Japan and overseas we are conducting numerous joint research projects with 
academic institutions and start-ups with the aims of developing innovative technologies as well 
as complementing and evolving our technologies. These projects include large-scale industry–
academia collaborative programs with the University of Tokyo, the Tokyo Institute of Technology, 
and Nagoya University. We also collaborate with other companies, including our customers, with 
a view to helping transform society through products.
	
Going forward, the AGC Group faces two important tasks. The first is to facilitate the realiza-
tion of a sustainable society by implementing measures aimed at achieving net-zero carbon emis-
sions and by reducing CO2 emissions through the provision of environment-friendly products. The 
second task is to advance digital transformation throughout the Group’s business activities, from 
development through to production and sales. Therefore, we will forge ahead with technology 
development initiatives aimed at accomplishing both tasks.
Anticipating the needs of society and customers, 
we are taking on the challenge of creating new value.
Technology 
development 
divisions
In-house companies
Leading companies 
(clients)
Universities
Research institutions
Start-ups
External partners
Intellectual Property 
Division
Business Development 
Division
Productivity Innovation 
Division
Technology General Division
60
Strategies for Our Management 
Foundations

Technology and Innovation
Production technologies
Functional design
1907 Founded
1910
1930
1950
1960
1970
1980
1990
2000
2010
2020
 
Glass
 
Electronics
 
Chemicals
 
Ceramics
History of Our Core Technologies
Core Technologies
Common Basic Technologies
Flat glass
Analysis and evaluation
Simulation
Sensing
Plant engineering
Smart factory
Development of fluoro-
chemical technology
Development of technology 
for pharmaceutical and 
agrochemical intermediates
Glass for cathode-ray tubes*
Automotive glass
Electronic circuit board 
materials
Soda ash
Caustic soda and 
chlorine
Propylene oxide
Chlorofluorocarbon
Fluorine resins and films
Fluorine based  
ion-exchange membrane
Pharmaceutical intermediates / 
drug substances
Alternative 
chlorofluorocarbon
Fluorinated antifouling 
treated agents
Environmentally friendly 
fluorinated refrigerants
Glass antennas
5G glass antennas
Cover glass  for  
automotive displays
Chlor-alkali cells*
Development of 
biotechnology
Contract manufacturing of 
biopharmaceuticals
Introduction of mam-
malian cell technology
Melting glass, in-house production  
of raw material
Refractory bricks
Fine ceramics
Sputtering targets
Ceramics molding agent 
for 3D printers
Development of 
chlorine utilization 
technology
Synthetic Fused Silica Glass
Glass for electronic 
components
Glass substrates for TFT-LCD
Glass substrates for PDP*
CMP slurry
Materials technologies
* Business discontinued
Electrochemistry
Surface functional design
Composites of different materials
Circuit and antenna design
F
E
G
H
Glass materials
Ceramic and inorganic materials
Organic and fluorine materials
Polymer materials
A
B
C
D
Glass melting and forming process
Glass fabrication and composite process
Coating
Chemical process
Resin molding
Pharmaceutical drug substance manufacturing
Bioprocessing
I
J
K
L
M
N
O
A
I
J
E
I
Introduction and 
development of 
float process
I
A
I
J
G
H
A
I
J
C
L
N
C
L
N
A
I
J
A
I
J
A
I
J
A
I
J
B
L
B
L
D
L
C
L
C
L
C
L
C
L
C
L
L
C
M
D
N
O
N
O
B
B
N
O
B
L
B
J
B
Glass for chemical 
strengthening
EUVL mask blanks
Data science
K
E
A
I
J
G
K
C
A
H
I
G
J
J
K
A
E
I
J
K
A
E
I
J
K
A
C
H
K
G
M
L
F
L
C
M
D
F
61
Strategies for Our Management 
Foundations

An Ambitious Initiative That Emerged from Training  
BIPV modules are building materials that double as solar cells. Unlike conventional solar cell 
panels, which can only be installed in particular places such as rooftops, BIPV modules can be 
installed on any part of a building, including facades, roofs, walls, and interiors. For traditional 
BIPV modules, black, dark blue, and other dark colors are used to optimize power generation 
efficiency. Consequently, due to their limited aesthetic appeal, in reality these modules tend to 
only be used in certain parts of buildings. However, the Lacobel T Active has overturned this 
established practice. This new product’s greatest benefit is that it comes in a much wider variety 
of colors, enabling the module to be used in many different areas of buildings thanks to its 
increased aesthetic appeal.
	
The development of Lacobel T Active began back in 2016. At the time, during a training 
program on technology marketing, attended by engineers from various divisions of the AGC 
Group, one team of trainees gave a presentation on colored BIPV modules. The idea was the 
brainchild of Yu Onozaki, who was engaged in development work related to the Life Science 
Business in the Chemicals Company. He suggested that it would be possible to coat BIPV mod-
ules in a way that would enable the addition of more colors to them while curbing the loss of 
power generation efficiency. Given its market potential, this idea was enthusiastically received by 
the judges, including President & CEO Yoshinori Hirai, who was the chief technology officer at 
the time, and a commercialization task force was thereafter established.
Using Comprehensive Strengths to Achieve Net-Zero Carbon Emissions
Development of the 
Lacobel T Active BIPV Module
How can the AGC Group help achieve a sustainable global environment? To provide one 
example of the new products we are developing to help society realize carbon neutrality, 
this section focuses on the Lacobel T Active building-integrated photovoltaic (BIPV) module, 
launched in Europe in 2022.
The Power Generation Efficiency Barrier  
Tomohiro Sakai, who was in the same training team as Onozaki and belonged to the New 
Product R&D Center, was a task force member. For his part, Sakai agreed with Onozaki’s idea 
but at the same time appreciated the technical hurdles to be overcome. To bring out various 
colors, it’s necessary to reflect part of the light needed for power generation. However, unless 
power generation efficiency was above a certain level, the product would not gain market 
acceptance. In grappling with this conundrum, Sakai recruited the help of other members of the 
New Product R&D Center. To determine which matrices and pigments would result in minimal 
reduction of power generation efficiency, they undertook the trial manufacture and evaluation 
of a number of samples one by one.
	
Meanwhile, looking ahead to the post-launch phase, Onozaki visited Masayuki Hayashi, who 
was in charge of the BIPV module business in the Building & Industrial Glass Company, to seek 
advice on BIPV module supply chains and sales channels. As involvement in the BIPV module 
business had made him aware that customers wanted BIPV modules with greater design flex-
ibility and aesthetic appeal, Hayashi was very interested in Onozaki’s idea and offered his full 
support. Thanks to the cooperation of Group company AGC Coat-Tech Co., Ltd., and the 
Coatings Business Group of the Chemicals Company, the trial manufacture and improvement of 
the sample products proceeded. Finally, the commercialization task force was able to manufac-
ture large-scale prototypes of actual modules and measure their power generation efficiency. 
Technology and Innovation
Lacobel T Active—a photovoltaics-embedded 
float glass available in a wide variety of colors
62
Strategies for Our Management 
Foundations

Advancing the BIPV Module Business through Stepped-Up Coordination in the Group
The journey of the BIPV module business has by no means been smooth. I became involved in the 
development of BIPV modules in around 2010. From 2014, I began working in the business that han-
dles these products. Unfortunately, BIPV modules were unable to grow beyond their small market niche, 
and generating sufficient profits remained challenging. I remember that this situation was largely 
unchanged in 2016, when Yu Onozaki told me about colored BIPV modules. In the five years since 
then, however, society’s environmental awareness has heightened rapidly, and expectations of the BIPV 
module business have become very high, both internally and externally. At such a time, I think it is 
wonderful that we have been able to market an unprecedented BIPV module.
	
This project has been made possible by collaboration among people from many different divisions, 
businesses, and regions. I believe that we were able to bring Lacobel T Active to market due to the 
openness of our corporate culture, which is conducive to collaboration among business personnel, such 
as my team, and R&D personnel, such as Onozaki and Tomohiro Sakai. I want to continue advancing 
the BIPV module business by deepening this type of in-house collaboration and catering to emerging 
customer needs.
A Trailblazing Product with Social and Aesthetic Value
The development of Lacobel T Active would not have been possible without the depth of the 
AGC Group’s technological expertise. In-house technologies, knowledge, and human resources 
were critical in realizing Yu Onozaki’s idea and moving the project forward. Organizationally, the 
New Product R&D Center, to which I belonged at the time, was well placed to serve as a hub 
connecting technologies and other assets, and I am proud to have been able to fulfill a facilitat-
ing role in the project.
	
When I first heard about Onozaki’s colored BIPV modules, I was drawn to the idea of com-
bining functionality that society will need with visual appeal that designers will want to make use 
of. Addressing climate change is becoming increasingly important, as evidenced by the AGC 
Group’s declared goal of achieving net-zero carbon emissions by 2050. Nonetheless, functionality 
alone is not enough to make a product the first choice of customers. In the same manner as this 
project is doing, I want to further propose products that incorporate social and aesthetic value that 
cannot be measured simply in monetary terms. To be deployed in the next development, I hope 
that Lacobel T Active successfully leads the way in providing new forms of value.
Under the watchful eyes of Onozaki, Sakai, and Hayashi, a variety of prototypes were measured. 
During this phase, one material composition yielded results that surpassed expectations. This 
was the moment when brightly colored BIPV modules became much more than a pipe dream.
Note: All the aforementioned organization names are those used at the time of the project.
Toward Launch in Europe  
While continuing the trial manufacture of samples with a view to increasing the variety of 
colors, Onozaki and his task force moved on to the next phase and began exploring commer-
cialization. At this juncture, the project abruptly changed direction. When members of the task 
force were reporting on their progress to the general manager of the Planning Division of the 
Technology General Division, he pointed out that the market for this type of product is bigger in 
Europe. Further, the members had the opportunity to outline their project to Marc Van Den Neste, 
technology and innovation vice president at AGC Glass Europe S.A., who happened to be in 
Japan at the time. Realizing that the project had tremendous potential, Van Den Neste returned 
to Europe and explained to his team the concept of the new product being proposed by Onozaki 
and his collaborators. Moreover, around this time the European marketing team had been searching 
for just such a solution. As a result, a Japan–Europe partnership was immediately formed to 
bring colored BIPV modules to market in Europe under the product name Lacobel T Active.
Technology and Innovation
Tomohiro Sakai
Inorganic Materials Group, Process Development Office
Fundamental Technology Development Division
Chemicals Company
AGC Inc.
Masayuki Hayashi
Smart Glass Division
AGC Asia Pacific Pte. Ltd.
63
Strategies for Our Management 
Foundations

Technology and Innovation
Overcoming Challenges by Transcending Regions and Divisions
 Onozaki   Our efforts to launch Lacobel T Active in Europe began around 2018. Initially, we com-
municated with the European team mainly through Mr. Décroupet, the senior R&D coordinator.
 Décroupet   At the time, despite being in a market with growth potential, our building-integrated 
photovoltaic (BIPV) module business in Europe was not performing ideally because issues related to 
price and design were preventing orders from growing as hoped. Against this backdrop, Mr. Van 
Den Neste returned from Japan and told us about Mr. Onozaki’s idea. I immediately informed the 
Europe marketing manager about the idea, who responded that he definitely wanted to bring the 
product to market in Europe. Ultimately, I became the intermediary between Japan and Europe.
 Onozaki   Then, with a view to a European launch, work began on the trial production of sample 
products. Once the prospect of starting up this production had come into view, we commenced 
marketing activities in Europe. It was at this stage that I began communicating with Ms. Stassen.
 Stassen   I was responsible for BIPV module development in the European R&D division. So, I knew 
the BIPV module business was having a hard time finding the breakthrough needed for growth. I 
had no inkling that a solution would come from Japan out of the blue and that I would become 
directly involved as the project leader in Europe. Although I felt the work was meaningful and was 
very happy, I understood that the project would be very challenging. Reducing the loss of power 
Bringing Lacobel T Active to 
the European Market
By shifting its focus from Japan to Europe, the 
AGC Group made great strides toward the com-
mercialization of Lacobel T Active. The five 
employees listed on the right—members of the 
project team that went on to launch the product 
in Europe—participated in a roundtable discussion 
recounting the project and discussing hopes for 
the new product.
generation efficiency while keeping the design unchanged would be difficult. What is more, we 
would have to form collaborations that transcended national borders and straddled divisions 
engaged in the fields of glass manufacturing technologies and coating technologies. In particular, 
as coatings are not my area of expertise, I realized that Ms. Deneil’s cooperation would be essential.
 Deneil   I am mainly responsible for the development of coating-related products. Until recently, 
the coating materials themselves were not manufactured in Europe. Our manufacturing process in 
the region involved using externally procured coating materials to coat products. However, Lacobel 
T Active required us to develop coating materials in-house. Therefore, we moved forward with the 
project in collaboration with the AGC Yokohama Technical Center and the Chemicals Company.  
It was a challenging project that presented us with a host of issues to overcome because the 
Architectural Glass Europe & Americas Company lacked sufficient knowledge of the chemical regu-
lations and standards pertaining to the manufacture and use of new coatings. Nonetheless, pre-
cisely because it was challenging, the project gave me the opportunity to take on a range of new 
tasks and provided me with valuable experience.
 Onozaki   Around the end of 2019, as collaboration between Japan and Europe was ­intensifying, 
Ms. Yokoyama, who is also an R&D coordinator, joined the project. Communication is extremely 
important for the smooth progress of a project involving such a diverse group of people. Without 
Ms. Yokoyama’s cooperation, we would not have been able to launch Lacobel T Active with a short 
lead time.
Yu Onozaki
Coatings Team Manager
Functional Materials Division
Materials Integration Laboratories
Technology General Division
Daniel Décroupet
Senior R&D Coordinator
(Global) Technology & Innovation
AGC Glass Europe S.A.
Mika Yokoyama
Global R&D Coordinator
Technology & Innovation
Architectural Glass Europe & 
Americas Company
Christine Deneil
R&D Project Leader- 
wet coatings
Surfaces Department
AGC Technovation Centre
AGC Glass Europe S.A.
Daphné Stassen
BIPV Project Leader
Surfaces Department
AGC Technovation Centre
AGC Glass Europe S.A.
64
Strategies for Our Management 
Foundations

Technology and Innovation
 Yokoyama   Thank you. As an R&D coordinator, in addition to being involved in R&D matters, I 
provided support in relation to European regulations as well as importing and exporting by obtain-
ing the cooperation of AGC Coat-Tech Co., Ltd., the Chemicals Company CSR office, and AGC 
Technology Solutions Co., Ltd. Lacobel T Active leverages a fundamental technology and the prod-
uct’s structure is deceptively simple. However, not everyone would have been able to come up with 
the idea for this product. Mr. Onozaki himself was very perceptive about the glass-­manufacturing 
and coating technologies needed to develop Lacobel T Active, even though they were entirely 
outside his area of expertise. If I was of help in such a valuable project, it is an honor.
 Onozaki   As Ms. Yokoyama just said, I am a specialist in organic chemistry and belonged to the 
Life Science Business. Also, none of the initial project members were experts in the technologies 
directly related to the development of Lacobel T Active. As the project progressed, we received the 
cooperation of an array of people and in-house organizations, including everyone here, the 
Materials Integration Laboratories of the Technology General Division, the AGC Technovation 
Centre, the smart glass team responsible for the BIPV module business in the Asia Pacific region, 
the Chemicals Company, and AGC Coat-Tech. This concerted effort renewed my sense of the 
power of the AGC Group’s diverse technologies and personnel.
 Décroupet   The creation of synergies across regions and divisions is extremely important for 
further enhancing the competitiveness of the AGC Group. In many cases, however, collaboration 
across regional and divisional boundaries does not produce concrete results due to differences in 
cultures and ways of thinking. I admire Mr. Onozaki for not being intimidated by such high hurdles 
and for taking the plunge into areas outside his expertise, division, and region.
Opening Up the Future with Lacobel T Active
 Stassen   Yes, that’s right. I think this project was made possible by the commitment in Japan to 
realizing the ideas of Mr. Onozaki and the rest of the team coupled with our enthusiasm in Europe 
about delivering this product to customers. For several years, colored BIPV modules have been sold 
in Europe. However, the products are rarely seen as they are very expensive and have unattractive 
designs. One reason for the high prices is that comparatively small companies are involved in this 
field, and no one company is able to produce both BIPV module components, namely, glass, which 
is the building material component, and solar panels, the photovoltaic cell component. By contrast, 
the AGC Group can achieve outstanding price competitiveness because it can produce in-house 
not only glass and solar panels but also coating materials. Moreover, the design of Lacobel T Active 
is its principal appeal, and I am delighted that we can offer a product needed by the market.
 Deneil   For individual users, Lacobel T Active is an attractive product that can contribute to the 
realization of sustainable cities. With social issues such as climate change and energy scarcity 
expected to become more acute, this type of product will be increasingly in demand. I look for-
ward to Lacobel T Active enabling the creation of aesthetically pleasing buildings that provide clean 
energy and thereby becoming a fantastic product for future generations.
 Yokoyama   While demonstrating great teamwork, individual project team members took on new 
challenges and fulfilled specific roles. I am very pleased that we trusted each other and were able 
to work together toward a single goal. I am also proud that I was part of the team and helped 
realize the project’s goal. I hope that Lacobel T Active will be used around the world and incorpo-
rated into impressive buildings that become landmarks.
 Décroupet   By taking on the challenge of meeting conflicting requirements for design and power 
generation efficiency, the project to develop Lacobel T Active embodied AGC’s founding spirit. 
However, the need for bold initiatives will remain. As the product’s facilitation of power generation 
by buildings will become an important part of efforts to achieve carbon neutrality, delivery of the 
product to customers worldwide will contribute significantly not only to the growth of the BIPV 
module business but also to the resolution of social issues. I am convinced that Lacobel T Active 
has ample potential to realize both of these roles.
 Onozaki   The AGC Group has a culture that encourages people to tackle the challenges pre-
sented by new businesses and technologies. Earlier, Mr. Décroupet praised me. But, I would like to 
add that, when we went beyond regional and divisional boundaries in the course of our inquiries, 
without fail people responded cooperatively and proactively. In other words, the Group’s culture 
allowed us to accelerate the project. There is no doubt that achieving the goal of carbon neutrality 
is extremely important for society. Lacobel T Active provides societies with one way of moving 
toward the achievement of this goal. I want to use the lessons learned from this project to take up 
the challenge of developing even more new products that help address social issues.
65
Strategies for Our Management 
Foundations

Human Resources
Basic Approach to Human Resource Management
To continue developing as a truly excellent corporate group, the AGC Group is aligning human 
resource management with business strategies.
	
Since introducing a global in-house company system in 2002, we have established frame-
works and personnel systems that reflect the globalization of management. These include the 
creation of human resource functions at each in-house company and the implementation of 
leadership development programs with a focus on succession planning in 2003.
	
To achieve Vision 2030, our long-term management strategy, organizational resilience is 
essential. In other words, we need an organization with functions and teams of employees that 
can respond flexibly to changes in the business environment. Based on this belief, we have formu-
lated three basic human resource strategies: pursuing diversity, strengthening the individual, and 
improving engagement. Through cohesive reforms extending from our human resource systems 
through to workstyles and the organizational culture along with measures to spread these 
reforms, we will realize our personnel management slogan, AGC People: the driver of our growth!
Strengthening the Individual
Leadership Development Programs
In developing the management personnel who will lead us into the future, we organically link 
Groupwide and global leadership development programs with divisional and regional programs.
	
The aforementioned programs are underpinned by the AGC Leadership Competency model, 
which clarifies the capabilities and qualities required of leaders in the AGC Group. In the two 
areas of self-development and team leadership, the model defines eight competencies and 43 
concrete types of behavior.
	
In light of the AGC Leadership Competency model, we select and step up the training of 
candidate leaders from divisional and regional sites. From among such employees, candidates 
for Groupwide and global management positions in the coming generation are chosen and then 
provided with additional training.
	
At the core of our management personnel development is the concept of “stretch assign-
ments,” which promote the growth of individu-
als by assigning them to challenging positions 
calling for levels of ability that are slightly 
beyond the current skill sets of the relevant 
individuals. Also, overall management personnel 
development plans are optimized through the 
cross-divisional assignment of the aforemen-
tioned candidates to key positions throughout 
the Group. Moreover, we heighten the effec-
tiveness of management personnel develop-
ment by conducting training programs at a 
Groupwide and global level as well as on divi-
sional and regional sites. For example, we pro-
vide Global Leadership Sessions and the Global 
Leadership Journey for business managers and 
Aiming to Realize Our Personnel Management Slogan, 
AGC People: the driver of our growth!
AGC People: the driver of our growth!
It is the status in which each of us maximizes our abilities and works together  
to build a strong organization, and as a result, we will pursue and  
achieve business strategies and organizational goals as well as growth  
of the Company and the individuals.
Continuously growing and evolving by advancing diversity, 
developing personnel, and taking steps to enhance engagement
Pursuing diversity
Strengthening the individual
Improving engagement
AGC Leadership Competencies
There are eight AGC Leadership 
Competencies, shown in the chart below, 
with 43 attached behaviors.
Influence and 
communication​
Selecting and  
developing the  
best people​
Leading toward 
success​
Leveraging diversity​
Leading a Team​
Leading the Self​
Innovation  
and change​
Integrity
Courage for 
taking on 
challenges
Passion​
66
Strategies for Our Management 
Foundations

Human Resources
senior management, while offering AGC University and AGC Management College courses in 
each region.
	
In the ways mentioned above, the AGC Group encourages candidates to acquire the experi-
ence and knowledge necessary for management through planned assignments, training, and 
other developmental activities while reviewing the levels of performance and leadership qualities 
displayed by candidates in their current positions and tailoring placement and development 
plans for the following year based on the candidates’ progress. Furthermore, members of the 
management team participate directly in the discovery and develop-
ment of next-generation management personnel. The HR 
Committee—comprising chief officers, the general manager of  
the Human Resources Division, and the presidents of in-house  
companies—is involved in the personnel development cycle, and 
outside directors give lectures at training programs.
Skills Map
The AGC Group has been operating a skills map since 2010 with the goal of promoting cross-
divisional human resource placements and communication. This map visualizes the skills of AGC 
Group employees in Japan and overseas, and employees register their own skills from among 41 
specialist skills categories (29 technical categories and 12 sales and administrative categories).
	
Making use of this skills map, we launched Cross-Divisional Network Activities (CNAs) in 
2011. Centered on skills leaders appointed for each category, the AGC Group encourages cross-
divisional activities among employees possessing the same skills. These activities include the 
holding of workshops, in-house seminars, and study groups in their respective communities.
	
Initially held only in Japan, we currently operate these activities on a global basis and are 
developing them to include activities spanning multiple skills as well as activities that are carried 
out jointly with external companies.
Group Management Personnel Development Cycle
Definition of the  
ideal candidate
Appointment to  
target position
HR  
Committee
CEO/CFO/CTO
In-house company 
presidents
Succession planning 
(placement /  
development plan)
Review of human 
resources
Placement and 
development
General 
manager of  
the Human 
Resources 
Division 
Cross-Divisional Network Activities—Evolving as a Third Place
Developed based on the skills map, CNAs provide platforms that promote learning by individuals, innovation in 
organizations, a sense of Group unity, and an ambitious corporate culture. In 2011, CNAs were launched based 
on the philosophy that AGC’s corporate culture should incorporate exchanges and technological advances 
transcending divisional and international boundaries. To encourage greater autonomy and freedom in the 
pursuit of CNAs, we changed their status to that of “a professional club” in 2015. Also, in 2018 the club was 
externally evaluated as being a Third-Place platform for communities of practice, which provides employees with 
opportunities for autonomous learning and interaction. In 2020, we established a new CNA philosophy.
	
The term “third place” signifies a comfortable space for individuals, distinct from their home (first place) 
and workplace (second place). In addition to skills development CNAs, we have begun JUKU* CNAs, which are 
grouped under such themes as design, art, and other right-brain subjects and strategies for standardizing 
operations. The AGC Group will continue supporting CNAs to establish them as part of an organizational 
culture that transcends divisions, countries, and regions. As of 2021, we host 45 CNAs, of which nine are 
international or interregional activities.
* Japanese word meaning “tutoring school,” in this case a theme-based activity as opposed to a skills-based activity
 The CNA Philosophy
CNA is aimed at achieving a Third Place in which individuals and the organization can grow and 
evolve together as a Professional club.
The Global Expansion of CNAs
In November 2021, we held the first CNA open seminar for AGC Group employees worldwide, followed by the 
holding of a second such seminar in February 2022. Both themed on sustainability, the first and second seminars 
attracted 214 and 154 participants, respectively, from sites in the Americas, Europe, and Asia.
Comments from participants
 The content was interesting! I hope for more of these types of learning events in the future.
 It was a great event for employees from different parts of the AGC Group to share knowledge and learn from 
each other.
 I was able to learn about the differences in attitudes to sustainability among employees in Europe and Asia.
 CNAs make good use of the AGC Group’s advantages as a global organization.
What is the “Third Place” referred to in 
the CNA Philosophy?
Workplace
Home
The Great Good Place  
where creative exchanges  
can happen and  
take place
2nd Place
1st Place
3rd Place
The goal of CNAs as a 
Professional club
Cross-Divisional 
Network 
Activity 
(Cross-Divisional Network Activity)
A training session by Outside Director 
Hiroyuki Yanagi for next-generation 
management personnel
67
Strategies for Our Management 
Foundations

Pursuing Diversity
Diversity is one of the four key values set forth in the AGC’s Group Vision “Look Beyond.”  
As well as being one of the foundations of Group companies, diversity is the source of the 
Group’s competitive superiority. Our business management encourages innovation and value 
creation by providing opportunities for diverse personnel to realize their full potential. We 
endeavor to create systems and environments in which diverse personnel can work comfortably, 
and we strive to operate a fair human resource and compensation system that emphasizes abil-
ity and achievement. In these efforts, we not only consider diversity in terms of gender, age, 
ethnicity, nationality, the presence or absence of disabilities, sexual orientation, religion, prin-
ciples, and values but also diversity in relation to careers, experience, and workstyles. Moreover, 
we also ensure the diversity of the Board of Directors.
 Developing Systems That Realize Diversity and Foster Personnel
Directors and 
executive 
officers
Development 
and utilization 
of human 
resources
Human 
Resource 
Systems
Human Resources
2020
2002
Began appointing non-Japanese
persons as executive officers
(9.0% as of January 2022)
2003
Launched the Global Leadership 
Development Program
2005
Introduced the Global Job 
Grade System
2019
Started the Data Scientist Development Program
2010
Established the 
skills map
2011
Initiated Cross-Divisional Network Activities
2011
Established a recruitment policy
• Set a target for newly graduated women 
as a percentage career-track hires
• Increased the recruitment of non-
Japanese people
1989
Introduced flextime 
system without core 
working hours
2011
Established a registration system for retirees wishing to be rehired
2012
Introduced a telecommuting system for employees 
providing childcare or nursing care, which became 
usable for any reason in 2017
2017
• Launched a spouse transfer leave program
• Instituted the Women’s Activity Secretariat
2003
Began childcare leave 
program for both men 
and women
2014
Began appointing female 
outside directors
2020
Began appointing 
women as inside 
executive officers
2030
Percentage of female 
executives: 30.0%
(18.0% at the end of 2021)
Percentage of female 
executive officers: 20.0%
(3.0% at the end of 2021)
2030
Percentage of female 
managers: approx. 8.0%
(Approx. 4.0% at the end of 2021)
  Non-consolidated AGC initiatives
Developing Personnel to Advance Digital Transformation
We define digital transformation as the exploitation of digital technologies to make our existing operations more 
efficient and to realize innovative business processes and business models that advance operations dramatically. 
In promoting such digital transformation, we have been developing dual-skilled personnel who possess both 
expertise in their particular business areas as well as digital technology skills.
	
In our view, digital transformation should be not only the task of digital technology experts but also tackled 
with a sense of ownership by all employees. That is why we have established a multi-layered training curriculum 
tailored to each employee’s job.
	
Developed during 2018 and 2019, Data Science Plus is a program designed to foster data scientists. The 
program’s introductory course provides a general education on data science, while the basic and applied course 
helps employees master data science methods and programming languages. As of 2020, 1,600 employees have 
completed either the introductory course or both courses. In addition, 40 employees have completed the 
advanced course, enabling them to solve problems in their own departments through the application of 
advanced knowledge and skills. By 2025, we will increase advanced course graduates to 100 employees. In 
2022, we also began conducting the basic and applied course in Thailand and China, where we have numerous 
production sites.
	
Other digital transformation initiatives include the 2021 launch of Digital Transformation Training for 
Managers, which targets the senior managers of in-house companies, and Data Utilization Training for Plant 
Technicians. The former is a program aimed at developing leaders who can exploit digital technologies to imple-
ment corporate transformation that aligns with the strategies of in-house companies. AGC plans to have 100 
employees complete this program by 2023. The latter program heightens operational excellence at manufactur-
ing sites by promoting the utilization of data to visualize sites, complementing the intuition, know-how, and 
experience of plant technicians.
	
Furthermore, to strengthen employees’ focus on digital transformation, we are inviting outside experts to 
conduct seminars as well as holding in-house exhibitions that allow employees to learn about digital transforma-
tion based on case studies from other in-house companies in Japan and overseas.
For managers
Digital transfor-
mation training
For data scientists
Personnel development
For plant technicians
Data utilization training
In-house awareness raising and education
(Tone at the Top, exhibitions, and seminars)
Enhancing the formulation 
of digital transformation business strategies
Fostering dual-skilled personnel with business 
expertise and data analysis skills
Heightening operational excellence 
at production sites
Strengthening employees’ focus on digital 
transformation
AGC People: the driver of our 
growth! in the Digital Age
68
Strategies for Our Management 
Foundations

Human Resources
Improving Engagement
In 2005, the AGC Group began conducting employee engagement surveys with two focuses: the 
synergistic relationship between highly-motivated employees and the company that fosters a 
better organizational climate. Since conducting a second survey in 2007, we have carried out the 
surveys every three years and followed a cycle in which we conduct surveys, analyze results, iden-
tify issues, and make improvements.
	
In 2019, we implemented the sixth employee engagement survey, which covered all Group 
employees and received responses from approximately 42,000 employees, or approximately 
90.0% of the total workforce, in 43 countries and regions. Previous surveys were paper- and 
online-based. However, switching to an entirely online survey has increased the response percent-
age and shortened lead times for calculating and analyzing results from three months to one. The 
2019 survey results improved in all categories compared with those of the 2016 survey, with 
noteworthy increases in the percentages of positive responses for “employee engagement” and 
“employee enablement.” On the other hand, as the percentages of positive responses were 
relatively low for “achievement of ambitious targets,” “level of recognition for work,” and 
“resources to carry out work effectively,” we have been making improvements in such areas.
	
After the compilation of the survey results, they were used to prepare the Engagement Survey 
Report, which included analysis of survey results and a message from the CEO. We issued the 
report in 22 languages and distributed it to all Group employees. In light of the survey results, 
employees, managers, and senior management have been holding dialogues to explore ways of 
addressing areas in need of improvement. Based on the conclusions of these dialogues, personnel 
at all levels of the Company have been implementing measures to create a better organizational 
culture. The next employee engagement survey is scheduled for the second half of 2022.
 Overview of the Results of the 2019 
Employee Engagement Survey
Among the multiple survey question catego-
ries, “employee engagement” and 
“employee enablement” are key categories 
with respect to engagement. Survey results 
have been improving steadily in both of 
these categories since 2010.
Holding of a Global Event
To mark the 114th anniversary of our founding, in September 2021 
we held the One Day at AGC Group Sites Global Tour online. The 
event encouraged pride in being an AGC Group employee by making 
visible the connectedness and diversity of the Group’s more than 
50,000 employees worldwide. During the event, we shared a video 
depicting a typical day at each Group site, with montages comprising 
not only offices, meetings, manufacturing sites, and employees 
beginning their working day but also the local dishes on the menus 
of company cafeterias and social contribution activities. In addition, a 
presenter used an app to conduct a quiz in real time, and there were 
appearances by the Group president & CEO, chief financial officer, 
and chief technology officer, making for an hour that brought AGC 
Group employees together from around the world.
An Example of Engagement Improvement Activities
Based in Guangdong Province, China, AGC Automotive (Foshan) Inc. manufactures laminated, tempered, and 
acoustic glass for automobiles and assembles components. Due in part to its high concentration of manufactur-
ing sites, the region has a very mobile workforce. For this reason, in 2018 the company began full-fledged 
initiatives to retain employees.
	
One initiative has been to improve workplace conditions by strengthening the “vertical” ties between the 
company and its employees. We identified factors that significantly impact employee motivation through overall 
consideration of multiple factors, such as temperature, noise, number of employees, employee turnover rate, 
and the results of interviews at each work site. Based on these results, we have improved the on-site environ-
ment by installing air-conditioners and soundproofing and by automating certain tasks.
	
Another initiative has been the strengthening of “horizontal” ties between employees and those around 
them, including coworkers, families, and employees of other compa-
nies. The aim of this initiative is the cultivation of a stronger sense of 
attachment to the company among employees. As part of these 
efforts, the company’s human resources department has taken the 
lead in organizing employee roundtable discussions and family days, 
when employees invite their friends and families to workplaces.
	
The aforementioned initiatives have borne fruit. The 2019 
employee engagement survey showed increases in the percentages of 
positive responses in all question categories compared with those of 
the 2016 survey, with a particularly marked improvement in the 
“employee enablement” category.
At the start of the working day in Thailand, 
employees pray for a safe day, and the 
national anthem is played.
A family day
Percentages of Positive Responses in the 
Past Four Employee Engagement Surveys 
(%)
2010
2013
2016
2019
63
61
65
66
61
62
0
60
65
70
75
70
67
 Employee engagement 
 Employee enablement
69
Strategies for Our Management 
Foundations

A Roundtable Discussion among 
Human Resource Managers
The AGC Group is optimizing its human resource 
functions by business and region. The four human 
resource managers on the right, who work in 
Japan, Thailand, the Czech Republic, and the 
United States, met to discuss region-specific 
human resource measures, the human resource 
issues faced by countries and regions, and related 
initiatives going forward.
Jingjing Yap
AGC Inc.
Global HR Strategy Group
Human Resources Division
Senior Staff
Lukas Vavrina
AGC Automotive Czech a.s.
Head of Development & WC
Recruiting Department
Jay Larkin
AGC Automotive Americas Co.
Talent Management
Manager
Yosita Wanyanaporn
AGC Chemicals (Thailand) Co., Ltd.
Human Resources Department
Assistant Department Manager
Human Resources
Summarizing the Challenges of Each Country and Region 
 Yap   At the AGC head office in Japan, I am responsible for the global employee engagement 
surveys and employer branding. Enhancing employee engagement promises to produce a range 
of benefits, including higher work quality and lower employee turnover. Moreover, increased 
employee engagement will heighten employee satisfaction and help the Company reach its 
goals. The AGC Group conducts employee engagement surveys every three years, with the next 
survey scheduled for the second half of 2022. Through extensive dialogues and taking into 
account the feedback received from our employees in these surveys, I am committed to creating 
better workstyles and workplaces. In addition, attracting talented personnel is an important goal 
of employer branding, and I am constantly exploring how best to communicate the AGC 
Group’s appeal. From my various business trips to Southeast Asia and work in Singapore, where 
I am originally from, I feel that issues remain with respect to AGC’s employer branding outside 
of Japan. What do all of you think?
 Wanyanaporn   Yes, I agree. I belong to AGC Chemicals (Thailand) Co., Ltd. In Thailand, the 
AGC Group’s employer branding lacks impact. In particular, more effort is needed to secure 
technical personnel. The Group has been operating in Thailand for more than 60 years. 
However, despite this long history, recognition of the Group’s brand is comparatively weak. To 
overcome this issue, we have been working on an AGC brand project in collaboration with the 
AGC head office in Japan for the past three years. We are trying to increase the visibility of AGC 
through social networking sites and other media. Recent hiring activities have revealed a grow-
ing awareness of AGC among candidates, but I believe the fruits of our efforts will emerge 
going forward.
I am constantly exploring how best to ­communicate 
the AGC Group’s appeal.
70
Strategies for Our Management 
Foundations

Vavrina   Securing technical personnel is also an issue at AGC Automotive Czech a.s., where I 
work. In fact, for the past several years the Czech Republic’s unemployment rate has been the 
lowest in the European Union, hovering between 2.0% and 3.0%. This makes hiring new 
employees difficult in the country. So, we have to look to other Eastern European countries and 
other regions. Meanwhile, in Asia we have been able to recruit personnel from Mongolia, who 
are interested in moving to the Czech Republic to work, and we expect to hire more personnel 
from this country. Another issue is how to deal with short-term fluctuations in demand for 
human resources. Especially during labor shortages, it is important to know how to attract tal-
ented personnel to our factories.
 Larkin   I completely sympathize with what Mr. Vavrina said. In the United States, not only the 
AGC Group but all kinds of companies are struggling with chronic labor shortages. Of course, 
there are many other human resource issues, but labor shortages are the biggest problem at 
this time.
 
Tackling the Common Issue in Terms of Human Resources 
 Yap   Based on the information everyone shared earlier, attracting talented personnel seems to 
be a common issue regardless of the region. By the way, in my home country employees com-
monly change jobs after three or four years to gain more experience and expertise. However, 
the concept of developing one’s career is rather different at AGC. Here, the Company values 
and enables personal growth from within the organization. For example, I studied engineering 
at university, but now I work in the Human Resources Division. Such a career development can 
be difficult to achieve in a job change where experience in the previous job is important. 
Irrespective of the previous experience of employees, however, the AGC Group enables them to 
pursue ambitions and transfer to different positions. In their new departments, employees 
receive thorough training. Moreover, the Group’s operation of businesses in various fields gives 
employees a particularly wide range of options.
 Vavrina   I agree. In fact, at the AGC Group, I have known and seen the effectiveness of cases 
where people were transferred from development to quality departments or from quality to 
process engineering departments. As employees can feel reluctant to continue in the same line 
of work, the availability of many different options makes career development of great interest to 
employees. Being able to gain experience and grow in different fields throughout our lives while 
still belonging to the same corporate group is a great advantage for us as employees.
 
 Larkin   Employee engagement and leadership development are key to employee retention. 
When we focus on these two important areas, the results are very impactful for employees. 
Thus, we will continue to target these areas.
 
 Wanyanaporn   For example, in Thailand, where I live, an employee who joins a company to 
work in human resources generally remains in human resources until retirement. This is because 
gaining extensive experience and becoming a professional is seen as paramount. However, look-
ing at the younger generation today, I do not think they necessarily see it that way. The com-
ments made so far in our discussion have left me feeling that we must welcome the changes in 
current needs and update our human resource systems accordingly.
 
 Yap   I hope our discussion will be a good stimulus for you, Ms. Wanyanaporn. Since joining 
the Company, I have worked with people from different countries, regions, and backgrounds. I 
believe that teams comprising people with diverse perspectives and different ways of thinking 
can adopt multifaceted approaches to difficult issues and come up with creative solutions. The 
participants in today’s roundtable discussion represent just such a team.
I feel that we must welcome the changes in 
­current needs and update our human resource 
systems accordingly.
Human Resources
71
Strategies for Our Management 
Foundations

Larkin   Yes, you are right. Despite regional and cultural differences, we have many things in 
common, and I have been listening to what everyone has had to say today with great interest.  
I hope that opportunities like this one will strengthen our relationships with each other and 
enable us to work together more often.
Pursuing Aspirations as Human Resource Professionals 
 Yap   Lastly, what do you hope to achieve as human resource professionals?
 
 Vavrina   At the beginning of our discussion, Ms. Yap mentioned global employer branding. 
When I talk with employee candidates, they really seem to like the fact that the AGC Group has 
a corporate culture based on cooperation among coworkers. This is actually true, and I want to 
ensure that we convey this type of appeal to those outside the Company. Another attractive 
aspect of the Group is that it provides many materials and components for familiar products 
that are indispensable for society, such as buildings and cars. I am also glad that, through the 
field of human resources, I can help with the development of such a company. For me, human 
resources is a very interesting field. Going forward, I will continue promoting measures that 
heighten employees’ appetite for proactively taking on ambitious initiatives.
 Wanyanaporn   The AGC Group enables employees to experience and learn about a wide vari-
ety of work as well as to broaden their horizons. Through events such as today’s roundtable 
discussion, the Group provides me with opportunities to meet coworkers not only from Thailand 
but also from other countries. I am really grateful to be able to learn new things from each of 
these coworkers. Like Mr. Vavrina, I would like to contribute to the Group in my capacity as a 
human resource professional. Society is changing at a rapid pace, and the demands on human 
resource departments are also changing. With this in mind, I will go on developing my skills.
 Larkin   When I talk to prospective employees and tell them that I have been with the AGC 
Group for 28 years, they invariably ask me what I like about AGC. I always reply that AGC is 
attractive to me because of the outstanding employees it has worldwide. I have visited AGC’s 
automotive glass production plants in Japan, the Czech Republic, and North America. The great 
personalities and cooperativeness of the AGC Group coworkers I meet at these plants never fail 
to impress me. Wherever I go, they are welcoming and helpful. It makes me proud to be a part 
of AGC. As a human resources manager, I will focus on developing the next generation of lead-
ers and I hope to leave AGC better than it was when I joined.
 
 Yap   For me, there are so many appealing things about working at AGC that I cannot list them 
all. But if I had to choose one, it would be the people who work in the AGC Group, as Mr. 
Larkin said. I have been truly blessed with the people I have worked with, from my supervisor 
when I first joined the company through to my coworkers. While remaining professional, they 
have always been very kind and helpful in teaching me many things. To repay their kindness, I 
would like to pass on the wonderful culture of the AGC Group to the next generation by further 
enhancing and utilizing my knowledge as a human resource professional. Finally, allow me to 
conclude by thanking all of you for the great discussion today.
Society is changing at a rapid pace, and the 
demands on human resource departments are 
also changing. With this in mind, I will go on 
developing my skills.
Human Resources
72
Strategies for Our Management 
Foundations

The Environment
Governance
Management Structure
In the medium-term management plan, AGC plus-2023, management has identified as 
material issues for the AGC Group major opportunities and risks that may impact its corporate 
value and the long-term direction of management at AGC, taking into account future trends in 
global social issues and risks, as well as social issues that its customers are trying to resolve. 
Accordingly, AGC has set sustainability targets that aim to deal with risks while taking advan-
tage of opportunities. 
Contributing to the Creation of a Sustainable Society  
in Harmony with Nature
Climate Action
Climate change and other global environmental issues are material issues for sustainability man-
agement for us. Opportunities and risks associated with climate change are factors that can 
have significant impacts across our entire value chain, from procurement of raw materials to 
manufacturing, logistics, sales, and waste and end-of-life products treatment, while also affecting 
value creation models and business strategies.
	
AGC endorses the principles of the Task Force on Climate-related Financial Disclosures 
(TCFD), which was established by the Financial Stability Board, and properly discloses informa-
tion about our oppotunities, risks and analyses of climate change. 
	
Addressing climate change is a material issue for us. The Board of Directors, which meets  
once a month, in principle, receives reports on progress addressing climate change. Guided by 
proposals made by the Board of Directors, the Company devises countermeasures to climate 
change, creates strategic plans, and evaluates, approves, and monitors progress on these initia-
tives and plans.
	
Chaired by the CEO and comprising the CTO, CFO, and the general managers from each 
division as members, the Sustainability Committee is a decision-making organization for sustain-
ability initiatives that meets four times a year. The Sustainability Committee is positioned on 
equal footing as the Management Committee, and under the supervision of the Board, it is 
responsible for deciding and monitoring the execution of sustainability-related matters, includ-
ing climate actions. The Sustainability Committee deliberates on policies to address climate 
change based on the identified opportunities and risks arising from climate change for the 
entire AGC Group, the results of monitoring greenhouse gas emissions, and related issues. 
	
Based on the decisions made by the Sustainability Committee, the CFO and CTO are 
­responsible for executing climate actions in accordance with their duties. The Strategy Meeting 
for Climate Change, which is led by the general manager of the Sustainability Division in the 
Corporate Planning General Division, deliberates in a timely fashion our actions to risks and 
evaluates strategies in light of changes inside and outside the Company that result from climate 
change. The AGC Group Greenhouse Gas Emissions Reduction Framework Committee, which is 
led by the general manager of the EHSQ General Division, works closely with specialist entities 
in the organization on data management, technological innovation, energy management, and 
supply chain management with the aim of reducing greenhouse gas emissions around the world 
and across the entire business.
Strategy
Since our founding, we have tackled social issues and responded to the needs of society 
in each era through R&D and commercialization activities from a long-term perspective, based 
on a foundation of trust with our customers. With the medium-term management plan 
­positioned as the second phase toward realizing Vision 2025, AGC has accumulated five 
strengths since its establishment that are core to its value creation model (see on page 6) while 
executing a cycle of resolving social issues with its business foundation supporting ongoing 
efforts to advance measures.
73
Strategies for Our Management 
Foundations

Identification of Climate Change-Related Opportunities and Risks
From the short term to long term, various changes brought about by global environmental 
issues, including climate change, present opportunities and risks for the AGC Group. The Group 
defines the short term as until next year, medium term as three years from now, and long term 
from 2030 onward. We identify and assess climate change-related opportunities and risks that 
may have an impact on our operations, taking into consideration the perspectives of both the 
mitigation of and adaptation to climate change, while evaluating the possibility of underlying 
changes in operations, earnings, and expenses. 
 Opportunities and Risks Likely to Have Major Long-Term Impacts
Analysis of Climate Change Scenarios
AGC performed a scenario analysis for the Automotive Glass Business based on the TCFD 
framework, taking into consideration the impacts that climate change might have on its value 
creation model and decisions about business strategies. Based on this scenario analysis, we drew 
up plans to mitigate risks and tap into opportunities in order to maintain the resilience of the 
AGC Group against the impacts of climate change. 
	
Since the AGC Group has a business presence around the world, our scenario analysis refer-
enced the International Energy Agency’s (IEA) 2 °C Scenario (B2DS), the IEA’s Sustainable 
Development Scenario (SDS), the IEA’s New Policies Scenario (NPS), the IEA’s Current Policies 
Scenario (CPS), and Nationally Determined Contributions (NDCs).
	
Using a multidimensional matrix to categorize in terms of procurement, markets, customers, 
government, investors, and society, we estimate the level of opportunities and risks in terms of 
quantitative and qualitative impact, as well as the likelihood of their materialization. We screened 
for events that would have a high estimated impact if an opportunity or risk actually materialized. 
	
For the AGC Group, an important factor under the 2 °C Scenario is how much costs will 
increase due to government policy for the transition to carbon pricing. Under the 4 °C Scenario, 
it is important to evaluate and take countermeasures for the potential impact on production 
sites and suppliers if climate change causes increases in flooding, high tides, and higher ocean 
levels that have catastrophic effects on property. 
	
Based on these observations, we strive to expand Strategic Businesses with high carbon effi-
ciency and asset efficiency and formulate business plans to take advantage of opportunities while 
reducing risks through initiatives to improve the carbon and asset efficiency of Core Businesses. 
The Environment
 Direction of Business Portfolio
Strategy
Details
Transition risks
Policies, laws, 
and regulations
Cost increases due to carbon pricing, such as a carbon tax, and other 
expanded regulations on GHG (greenhouse gas) emissions
Technology
Increased costs to realize the transition to low-carbon technology, such as 
establishment of manufacturing methods that do not require fossil fuels
Markets
Decrease in demand for existing products due to changes in consumer 
preferences
Physical risks
Short-term
Effects on operations and logistics due to natural disasters such as heavy 
rainfall, floods, and droughts
Long-term
Effects on operations and logistics due to inundations caused by long-term 
rising sea levels, greater frequency of storms, and typhoons stemming from 
an average global temperature increase
Heatstroke in hot workplaces during the summer due to the rise in average 
global temperature
Opportunities
Resource 
efficiency
Cost reductions through more efficient use of mineral and water resources
Diversification of raw material options by utilizing recycled resources such as 
glass cullet and recovered fluorite
Products
Development and sale of products that contribute to the alleviation of and 
adaptation to climate change, such as Low-E double-glazing glass, alternative 
fluorocarbons with low global warming potential, and ion exchange membranes 
that contribute to the production of drinking water and water reuse
Markets
Access to new markets leveraging the strengths of the Group's technologies
High
Low
Low
High
ROCE*1
Carbon efficiency*2
10%
20%
30%
*1 ROCE = Operating profit forecast of the current fiscal year ÷ Operating asset forecast at the 
current fiscal year-end (based on fiscal 2023 targets)
*2 Based on actual emission intensity per unit of sales in 2020
Chlor-Alkali & 
Urethane
Architectural Glass
Fluorochemicals &  
Specialty Chemicals
Display
Electronic 
Materials
Automotive Glass
Life Science
Growth and expansion
 Core Business   
 Strategic Business
74
Strategies for Our Management 
Foundations

Climate-Related Opportunities
We view contributing to reducing greenhouse gases in society as a business opportunity for the 
AGC Group and are advancing the development and proliferation of products that help reduce 
greenhouse gas emissions during use. 
	
In the Glass Segment, we expect demand to strengthen for products that can reduce energy 
consumption when final products are used, such as eco-glass. We aim to increase sales of envi-
ronmentally friendly products, such as vacuum-insulating glass, and develop glass production 
technologies that help conserve energy. 
	
In the Chemicals Segment, we anticipate stronger demand for new environmentally friendly 
coolants with low global warming potential (GWP). Based on the idea of considerably reducing GWP 
while maintaining the performance of coolants and solvents, AGC is helping reduce greenhouse 
gas emissions across society by expanding sales of AMOLEA™, a next-generation coolant and 
solvent that lowers GWP below 1 and ozone depletion potential (ODP) to roughly zero. 
	
Beginning with SELEMION™, an ion-exchange membrane used to produce drinking water 
by filtering out salt and nitrogen from well water, AGC endeavors to develop and spread products 
that mitigate the impact of climate change. 
	
Moreover, as an environment and energy business, we are keen to develop and spread prod-
ucts that facilitate the proliferation of hydrogen and renewable energy. One such product is our 
fluorinated electrolyte polymer solution for fuel cells, which features both high power generation 
performance and durability as a material used in power generation systems of fuel-cell vehicles 
(FCVs), a next-generation mobility solution. In both Core and Strategic Businesses, AGC is accel-
erating the development of technologies and businesses in the environment and energy domains.
Climate-Related Risks
AGC anticipates a rise in costs to address transitional risks as stakeholders increasingly demand 
more contributions to decarbonization through business activities, while countries and regions 
strengthen regulations to combat climate change and set goals to reduce greenhouse gas emis-
sions to comply with the Paris Agreement, among other international initiatives. A growing 
number of suppliers intend to increase energy efficiency throughout their supply chains, and if 
customer expectations are not met, demand for existing products might weaken. 
	
If regulations become stricter around the world to keep temperatures rising as little as possible 
and if countries introduce carbon-pricing, the potential long-term impact is on the order of 
several billion yen. AGC will fine-tune its analysis to quantitatively assess the impact on its profits, 
costs, assets, and liabilities along different timelines. 
	
AGC also assesses water risks due to climate change. At sites in regions identified to have a 
high likelihood of natural disasters caused by torrential rainfall, flooding, or drought, based on 
the results of our assessments, we calculate the impacts on operations and formulate business 
continuity plans and countermeasures for facilities in a bid to reduce potential damage. 
	
In addition to the direct impact from climate change, we conduct evaluations of the impact 
on natural capital in terms of water use, energy use, land use, and waste generation. 
Risk Management
Process for Identifying and Assessing Climate-Related Risks
We have created the AGC Group Enterprise Risk Management Basic Policies for the AGC 
Group’s risk management systems for short- and medium-term risks, and we maintain a frame-
work for managing risks and responding to crises. 
	
For long-term risks, we strive to understand various opportunities and risks that could arise 
from climate change and aim to minimize risks and reinforce our competitiveness by continuing 
to evaluate the appropriateness of our strategies based on scenario analysis. 
The Environment
Production Process Reforms
Contribution to Reducing 
CO2 Emissions
Next-Generation Energy
Reduce our own emissions through 
technological innovation
Develop and spread products that 
help reduce CO2 emissions  
during usage
Develop and spread products that 
help proliferate hydrogen and 
renewable energy
Glass-melting process
• Introduction of highly energy-
efficient oxygen combustion 
methods
• Introduction of electric boosters for 
melting to reduce fuel consumption
• Acceleration of electrification of 
melting heat sources
Vacuum-insulating glass
• Development of vacuum-insulating 
glass with Panasonic Corporation 
with highest-class* performance in 
industry
• Contribution to improvement of 
living environments in Europe, the 
largest market for insulating glass
Fluorinated electrolyte polymer 
solution for fuel cells
• Parts and materials for power gen-
eration systems of FCVs, a next-
generation mobility solution
• Establishment of dominant No. 1 
position with high quality based on 
high power generation performance 
and durability
* Heat transmission coefficient for 6-millimeter vacuum-insulating glass is 0.7 W / (m2 · K). As of October 15, 2018. AGC survey
Example Initiatives 
75
Strategies for Our Management 
Foundations

Process for Management of Climate-Related Risks
The Board of Directors and the Management Committee regularly monitor identified climate-
related risks and perform the management thereof. Corporate divisions, in-house companies, 
and strategic business units (SBUs) analyze risks and examine countermeasures for each business 
and project. If necessary, such risks are deliberated on by the Board of Directors and the 
Management Committee. 
Integration of Risk Management Processes with Climate-Related Risk Identification, 
Assessment, and Management Processes 
Risks likely to have a major impact on the operations of the AGC Group if they were to materialize 
are classified as “major risk factors,” and the management team maintains and operates a 
framework for monitoring the Groupwide management of these risks. For climate change risks 
deemed as major risk factors, AGC has created the AGC Group Risk Management Implementation 
Rules to guide management on how to regularly self-inspect the level of risk management in 
their organizations and monitor the results.
Addressing of Climate-Related Risks
As frameworks for reducing greenhouse gas emissions (Scope 1 and Scope 2) associated with its 
business activities, while preparing to respond if countries and regions enhance or introduce 
carbon-pricing schemes like those identified in our scenario analysis, in 2020 the AGC Group 
introduced carbon cost simulations (calculating net present value (NPV) per unit of greenhouse 
gas emissions in investment projects) and, in 2022, rolled out an internal carbon-pricing scheme. 
The Group has set ¥6,500/t-CO2 as a benchmark for business investments and capital invest-
ments for reducing greenhouse gases. 
	
 Additionally, we are reducing energy use through measures to conserve energy and switch-
ing from fossil fuels to non-fossil fuels as sources of energy. For glass-melting processes that are 
already highly efficient in terms of carbon emissions, we are introducing oxygen 
combustion methods with even higher energy efficiency, introducing electric boosters for 
melting that reduce fuel consumption, accelerating the electrification of melting heat sources, 
and conducting trials with ammonia combustion. 
	
As a strategy to counter physical risks, we envision what impacts abnormal weather could 
have on our production processes and sales operations, as well as predicting possible impacts on 
costs, product transportation, and raw material procurement. Moreover, the AGC Group newly 
calculated the expected amount of damage natural disasters inflict on its operations, and will 
reflect this in its capital investment plans while moving to reduce procurement risks.
The Environment
Metrics and Targets
In order to create five types of social value through its business activities and core initiatives for 
the environment, the AGC Group’s climate-related targets are based on greenhouse gas emis-
sions as a key performance indicator. With the aim of achieving net-zero carbon emissions by 
2050, AGC has set milestone targets for reducing greenhouse gas emissions by 30% and green-
house gas emissions intensity per unit of sales by 50% by 2030, compared with 2019 levels 
(Scope 1 and Scope 2). In addition, AGC aims to help the world become net-zero carbon emis-
sions through its products and technologies.
2020
2030
2050
Net-Zero Carbon Emissions by 2050

(Scope 1 and Scope 2)
Greenhouse gas emissions: 
30% reduction
(Scope 1 and Scope 2 emissions)
2030 milestone (compared with 2019)
Greenhouse gas emissions intensity per unit of sales: 
50% reduction
(Scope 1 and Scope 2 emissions intensity per unit of sales)
	
In terms of initiatives before 2020, in 2014 AGC advanced initiatives to reduce greenhouse gas 
emissions under the slogan of “aiming to reduce annual CO2 emissions (Scope 1 and Scope 2) 
through energy-conserving and energy-creating products by six times our own emissions by 2020.” 
In 2019, the amount of greenhouse gases reduced as a result of our energy-conserving and 
­energy-creating products sold that year totaled 63.7 million t-CO2-e, 5.6 times the AGC Group’s 
annual greenhouse gas emissions of 11.37 million t-CO2-e (Scope 1 and Scope 2) that same year. 
	
In addition to Scope 1 and Scope 2 emissions, AGC has set targets for reducing Scope 3 
­emissions and is taking steps to reduce greenhouse gas emissions across society and lessen the 
impact of climate change. Alongside reducing greenhouse gas emissions, in order to manage 
identified risks, we refer to water use and cullet use as management indicators and analyzes this 
impact in a timely manner. AGC works to reduce emissions by forecasting and keeping track of 
actual greenhouse gas emissions every year. The next page shows our actual greenhouse gas 
­emissions (Scope 1, Scope 2, and Scope 3) from 2019 to 2021.
76
Strategies for Our Management 
Foundations

The Environment
 Greenhouse Gas Emissions (Scope 1, Scope 2, and Scope 3) (2021)
 By Business Segment 
Greenhouse Gas Emissions  
(Scope 1 and Scope 2) (2021)
 By Region 
Greenhouse Gas Emissions  
(Scope 1 and Scope 2) (2021)
 By Business Segment 
Actual Greenhouse Gas Emissions (Scope 1 and Scope 2) intensity per Unit of Sales (2021)
For more information on our climate actions, refer to the AGC Sustainability Data Book.
	 https://www.agc.com/en/csr/book/index.html
Greenhouse Gas Emissions: Scope 3
(Thousands of t-CO2-e)
2019
2020
2021
Scope 1 (direct emissions)
6,165
6,429
6,986
Scope 2 (indirect emissions from purchased energy)
5,271
4,634
4,621
Scope 3 (other indirect emissions)
13,175
11,601
11,527
Total
24,611
22,664
23,135
(Thousands of t-CO2-e)
2019
2020
2021
Category 1
Purchased goods and services
2,942
3,716
3,406
Category 2
Capital goods
389
684
685
Category 3
Fuel- and energy-related activities (not included in 
Scope 1 or Scope 2)
1,776
1,102
2,266
Category 4
Upstream transportation and distribution
1,197
1,007
1,293
Category 5
Waste generated in operations
12
35
14
Category 6
Business travel
19
43
18
Category 7
Employee commuting
21
51
20
Category 8
Lease assets (upstream)
–
–
–
Category 9
Transportation and distribution (downstream)
–
–
–
Category 10 Processing of sold products
282
269
261
Category 11 Use of sold products
2,398
1,945
1,681
Category 12 End-of-life treatment of sold products
3,971
2,581
1,716
Category 13 Lease assets (downstream)
167
167 
167 
Category 14 Franchise
–
–
–
Category 15 Investments
–
–
–
Total
13,175
11,601
11,527
Coverage of Scope 1 and Scope 2 emissions	 AGC Inc. and its consolidated subsidiaries (a total of 133 manufacturing and non-manufacturing 
sites as defined by the Company’s standards)
Coverage of Scope 3 emissions	
AGC Inc. and its consolidated subsidiaries (a total of 238 manufacturing and non-manufacturing 
sites as defined by the Company’s standards)
Scope of coverage:	
AGC Inc. and its consolidated subsidiaries (a total of 238 manufacturing and non-manufacturing sites as defined by the 
Company’s standards)
Scope of calculations:	 Categories 10, 11, and 12 refer only to AGC Inc.
Business Segment
1,000 t-CO2-e/¥100 million
Glass
0.63
Electronics 
0.54
Chemicals 
0.83
Other
0.15
Total 
11,607,000 t-CO2-e
Total 
11,607,000 t-CO2-e
Glass 
39.7%
Japan 
22.5%
Electronics  14.2%
Asia (excluding Japan)  52.5%
Other  1.0%
The Americas  3.8%
Chemicals  
45.1%
Europe 
21.2%
Greenhouse Gas Emissions: Scope 1, Scope 2, and Scope 3
77
Strategies for Our Management 
Foundations

The Environment
However, in the pursuit of profits, manufacturing sites were also required to improve 
­productivity and reduce costs, and I doubt there were many who thought about proactively 
advancing environmental protection beyond the level needed for compliance with said laws 
and regulations.
 Inoue   Today, by contrast, we are in an era when business activities are not viable unless com-
panies act on their own to address a wide range of social issues and tasks, such as climate 
change, the establishment of a circular economy, and the preservation of natural capital. In 
Japan, we are feeling the effects of climate change, including an increase in wind and flood 
damage. Consequently, social awareness of the environment is rapidly rising. Accordingly, I 
believe that the EHSQ General Division must also tackle environmental activities with a com-
pletely different mindset than that of the past.
 Iwakura   Under such circumstances, more than ever we must consider not only the environ-
mental impacts during manufacturing processes but also the environmental impacts before and 
after manufacturing processes. That is to say, we have to think in terms of entire product life 
cycles. The Purchase & Logistics Division, which I manage, is responsible for the procurement of 
raw materials before manufacturing and the transportation of products after manufacturing, in 
other words, the “entrance” and “exit” of manufacturing operations. For this reason, I have 
firsthand experience of the steadily increasing severity with which institutional investors and 
other stakeholders view environmental impacts. At the exits, we have already begun working on 
a modal shift from transportation by trucks and other gasoline-powered vehicles to railways and 
other modes that place less burden on the environment.
 Inoue   The AGC Group’s management team consistently emphasizes to employees that safety, 
environment, quality, and legal compliance are the preconditions of business activities. 
Traditionally, in-house awareness of safety has been very high, and the “No Production without 
Safety” policy has become firmly rooted in operations worldwide. Going forward, however, “No 
Production without Environment” could become a Groupwide motto. The current medium-term 
management plan, AGC plus-2023, sets as long-term goals for 2050 the achievement of 
net-zero carbon emissions from business activities and the leveraging of products and technolo-
gies to help realize net-zero carbon emissions globally. Further, as a milestone, we have set a 
target for reducing GHG (greenhouse gas) emissions by 2030 compared with those of 2019.
The AGC Group’s past and future environmental activities were discussed by Shigekuni Inoue, 
general manager of the EHSQ General Division, and Seigo Iwakura, general manager of the 
Purchase & Logistics Division.
Shigekuni Inoue
General Manager of the EHSQ 
General Division, General Manager 
of the AGC Yokohama Technical 
Center
Seigo Iwakura
General Manager of the 
Purchase & Logistics 
Division
Considering the Status of Environmental Activities
 Inoue   Roughly 50 years ago, companies’ environmental activities comprised measures to 
prevent factories from polluting the air and water. As we have both been engaged in 
­manufacturing for many years, we also became involved in environmental activities from a 
­relatively early stage.
 Iwakura   Yes, that is right. As pollution became a social issue, the first priority was ­achieving 
compliance with the various environmental laws and regulations established to curb pollution. 
Making the AGC Group’s Environmental Activities  
More Visible
78
Strategies for Our Management 
Foundations

The Environment
Making Environmental Activities Visible
 Iwakura   The AGC Group’s founding business is glass manufacturing, which requires a lot of 
energy. Traditionally, heavy oil was used as the main fuel in this manufacturing. In recent years, 
however, we have been switching to natural gas, which is more expensive than heavy oil but 
produces lower GHG emissions and less air pollution. Further, in 2020 we completely revised the 
AGC Group Purchasing Policy, which now clearly states a commitment to fulfilling our responsi-
bility with respect to the realization of a sustainable global society as well as to conducting envi-
ronment-friendly procurement.
 Inoue   The concept of recognizing environmental impacts as a cost is gaining ground. I believe 
that one of the reasons for this change is the progress in visualization. First of all, we have made 
targets visible by setting out numerical targets for the AGC Group’s GHG emissions as key per-
formance indicators (KPIs). In addition, we will set KPIs not only in relation to addressing climate 
change but also for environmental issues, such as building a circular economy and conserving 
natural capital. Then, we will prepare action plans to achieve these KPIs. Moreover, to make 
initiatives visible, we are focusing on environmental information disclosure. In recognition of 
these efforts, in 2021 the CDP* gave us an A– evaluation in the climate change field, our 
­highest ever-rating.
* CDP is a non-profit organization whose main activities entail seeking from companies and municipal authorities disclosure of their measures 
for climate change mitigation, water resource protection, forest conservation, and other environmental issues that is consistent with the 
requirements of highly environmentally conscious institutional investors and major purchasing companies worldwide as well as using this 
disclosure to encourage such measures.
 Iwakura   As well as enabling our stakeholders to see and understand the progress of our 
efforts more easily, the external disclosure of KPIs raises in-house awareness. In February 2022, 
we introduced internal carbon pricing. I hope that this initiative will make environmental 
impacts more readily understandable to each employee and thereby further advance our efforts 
to reduce GHG emissions. As the establishment of a circular economy, which was mentioned 
earlier, is strongly related to the Purchase & Logistics Division, I would like to work closely with 
the EHSQ General Division to establish KPIs.
 Inoue   Regarding climate action, Scope 2 and Scope 3 GHG emissions have a particularly 
direct relationship to the Purchase & Logistics Division, which is one of the reasons why we 
coordinate so closely with your division. The role of the EHSQ General Division is to set specific 
numerical targets and formulate measures, but business divisions are responsible for pursuing 
these targets and putting measures into practice. Although a corporate division, the Purchase & 
Logistics Division has many opportunities to collaborate with business divisions in the course of 
its daily operations. For this reason, collaboration with the Purchase & Logistics Division is indis-
pensable in enhancing the effectiveness of business divisions’ environmental activities.
 Iwakura   Aiming to create economic and social value, the whole AGC Group has identified 
the five types of social value the AGC Group wants to create, one of which is environmental 
value. However, there are times when I feel that, overall, the Group is still focused on economic 
value. Of course, this is not surprising, since the business divisions are engaged in operations 
directly related to economic value. On the other hand, the role of corporate divisions such as the 
EHSQ General Division is to seek a balance between economic value and social value in corpo-
rate activities. With a greater focus on social value, we will work in partnership with business 
divisions and help realize this balance.
 Inoue   Without a cross-divisional approach, we would not be able to move forward with envi-
ronmental initiatives. As I mentioned earlier, making issues and progress visible is an ­important 
way of encouraging business divisions to advance initiatives as one cohesive team. For example, 
we are considering making two key areas visible. The first is whether ­environmental rules and 
frameworks are in place, with the second being whether environment-friendly attitudes and 
awareness are being fostered. Visualization of these two areas will enable us to grasp the current 
status of each operating site and to seek high levels of achievement in both key areas at all sites.
	
Further, given the large amounts of energy used by the AGC Group and its peers, the mate-
rials industry is often thought of as negatively affecting the environmental component of social 
value. However, many of our products are essential to society because they provide health, 
safety, and various other benefits. In other words, the Group also delivers positives in terms of 
social value. If these positives outweigh the negatives, we will be nature positive. I would like  
to take on the challenge of making our positives visible as well. This is an ambitious goal. 
Nonetheless, I am convinced that the social value provided by products of the AGC Group is 
larger than the negative effects of its energy consumption, and I would like to convey this mes-
sage to society. Given that even closer collaboration between our divisions will be essential in 
establishing and communicating the Group’s social value, let us redouble our efforts and 
­continue working in partnership.
79
Strategies for Our Management 
Foundations

Corporate Governance
How AGC Works to Achieve Sustainable Growth and 
Raise Corporate Value over the Medium to Long Term
Fundamental Approach
The AGC Group has established the AGC Group Corporate Governance Basic Policy and strives to 
strengthen and improve its corporate governance while operating in a manner that transcends the boundar-
ies of the parent and its subsidiaries, in order to achieve sustainable growth and improve corporate value for 
the Group over the medium to long term. The Group has transitioned to a Company with an Audit & 
Supervisory Board corporate governance system and works to strengthen the management oversight 
­function through the clear separation of the management oversight and business execution functions. 
Meanwhile, for business execution the Group’s basic policy is to accelerate business execution by clearly 
dividing the Group’s corporate function and the business operation function.
 For further details, please refer to the Corporate Governance Report submitted to the Tokyo 
Stock Exchange.
	
https://www.agc.com/en/company/pdf/governance.pdf
Framework for Management Oversight
Composition and Role of the Board of Directors
Comprising seven directors, each appointed to a one-year term, the Board of Directors of AGC is responsible 
for approving the AGC Group’s basic policies and performing oversight of its business execution. Three of 
the aforementioned directors, one of whom is female, are outside directors registered with the Tokyo Stock 
Exchange as independent officers who have satisfied AGC’s own criteria for independence.*1 The Board of 
Directors convened on 14 occasions in 2021. At these meetings, the Board performed oversight of the 
AGC’s Risk Management System
AGC defines important risk factors pertaining to the Group and regularly deliberates on the status 
of risk management at meetings of the Board of Directors. Under the AGC Group Enterprise Risk 
Management Basic Policies, the Company maintains risk management and crisis response systems 
for short- to medium-term risks while, in regard to sustainability risks (long-term risks) identified 
based on social issues and trends and other factors, the Sustainability Committee ascertains the 
status of progress on sustainability targets and maintains a management system aimed at achieving 
these targets through such activities as deliberating future measures in light of the status of progress.
 For information on risk pertaining to the AGC Group:
	
https://www.agc.com/en/ir/policy/risk/
business execution of the AGC Group while determining candidates for director, nominating and determin-
ing executive officer positions for the upcoming year, and approving important matters such as the acquisi-
tion and disposal of important assets and budgets.
	
The appointment of candidates for director is decided by the Board of Directors based on the recom-
mendations of the Nominating Committee after deliberations. Candidates for director are people who have 
track records, experience, and insight that are key to approving important matters for business execution at 
AGC and for supervising business execution. Candidates are screened and determined after due consider-
ation is paid to the balance and diversity of specializations of Board members.
	
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 management and knowledge of corporate governance-related issues. In principle, meet-
ings of the Board of Directors, Nominating Committee, and Compensation Committee are chaired by an 
outside director.
*1 As of March 30, 2022
Board of Directors
Management Committee
Important risks to be managed based on 
the AGC Group Enterprise Risk 
Management Basic Policies
Sustainability risks (important risks for 
materiality) to be identified based on 
social issues and trends and other factors
Sustainability Committee
From the short term to the medium term
Long term
Report
Report
Supervision
Supervision
80
Strategies for Our Management 
Foundations

Corporate Governance
The AGC Group’s Corporate Governance System (as of March 30, 2022)
 :Inside directors or inside Audit & Supervisory Board members
 :Outside directors or outside Audit & Supervisory Board members 
who satisfy AGC’s criteria for independence of outside officers
* An in-house company is defined as a business unit that has net 
sales exceeding ¥200.0 billion and which conducts its business 
globally. At present, there are five In-House Companies: the 
“Architectural Glass Asia Pacific Company”, “Architectural Glass 
Europe & Americas Company”, “Automotive Glass Company”, 
“Electronics Company” and “Chemicals Company”. Business 
units of a smaller size than this are defined as SBU (strategic 
business unit), and currently there is AGC Ceramics Co., Ltd.
Structure and Roles of the 
Nominating Committee and 
Compensation Committee
AGC has established the Nominating Committee 
and the Compensation Committee, both of which 
are composed of mainly outside directors, as 
voluntary advisory committees to the Board of 
Directors, in order to improve objectivity regarding 
the evaluation, appointment, and compensation 
of directors and executive officers. Both commit-
tees are chaired by outside directors.
Composition of Committees / Topics of Discussion / Number of Meetings Held (2021)
Nominating Committee
Compensation Committee
Members
Inside
Outside
Inside
Outside
Yasuchika Hasegawa* 
(Retired on March 30, 2022)
〇
〇
Hiroyuki Yanagi
◎
〇
Keiko Honda
〇
◎
Takuya Shimamura
〇
〇
Yoshinori Hirai
〇
〇
Number of members
5 directors (of whom 3 are outside directors)
5 directors (of whom 3 are outside directors)
Topics of discussion
Selection of director and Audit & Supervisory Board member candidates and 
their recommendation to the Board of Directors; and deliberations on the 
criteria for appointing directors and executive officers and their roles, 
assignment, and development 
Revision of performance-linked compensation and stock-based compensa-
tion for directors and executive officers; determination of amounts of 
performance-linked compensation for executive officers and establishment 
of their performance targets for the next year; deliberations on analysis and 
review of compensation levels for directors, Audit & Supervisory Board 
members, and executive officers; and proposals to the Board of Directors
Number of meetings held
11 times
8 times
* Chairperson of the Board of Directors     ◎: Committee chairperson  〇: Committee member
General Meeting of Shareholders
Report
Report
Executive Officers
In-House Companies / 
Strategic Business Units (SBUs)*
Compliance Committee
Information Management Council
Security Export Control Headquarters
Audit & Supervisory Board: 4 Members
Outside Members 
(3)
Inside Member
(1)
Mutual 
Cooperation
Board of Directors: 7 Directors
Nominating Committee: 5 Directors 
Compensation Committee: 5 Directors
Outside Directors
(3)
Chairperson
Inside Directors (2)
Inside Directors (2)
Outside Directors (3)
Outside Directors (3)
Business Execution 
Management Oversight
Business Operation Function 
Group Corporate Function
CEO
CFO (and CCO) 
CTO
Chairperson
Chairperson of the Committee
Chairperson of the Committee
Internal Audit Division
Group Corporate
Management Committee
Sustainability Committee
Accounting Auditor
81
Strategies for Our Management 
Foundations

Corporate Governance
Activities of the Sustainability Committee
The Sustainability Committee meets four times a year with the CEO, CFO, CTO, Audit & Supervisory Board 
members, and general managers of all divisions present. The committee’s deliberations are reported to the 
Board of Directors twice a year. Additionally, the Sustainability Division under the Corporate Planning 
General Division acts as the administrative office for the Sustainability Committee to lead the formulation 
and execution of sustainability management strategies for the entire AGC Group. 
	
• Initiatives to combat climate change, such as an internal carbon-
pricing system
	
• Issues and initiatives related to diversity & inclusion
	
• Activities to achieve sustainability targets
Evaluation of the Effectiveness of the Board of Directors
AGC believes that continuously strengthening and enhancing its corporate governance is vital to achieving 
sustainable corporate growth and raising corporate value over the medium to long term. As part of these 
efforts, the Company carries out an annual analysis and evaluation of the effectiveness of the Board of 
Directors based on the AGC Group Corporate Governance Basic Policy, with the goal of improving the 
effectiveness of the Board and increasing stakeholder trust in AGC’s corporate governance.
Evaluation Method
AGC has evaluated the effectiveness of its Board of Directors every year since 2016. The overall evaluation 
score has improved each year thanks to efforts to remedy issues identified in the evaluation. 
	
From 2016 to 2018, AGC conducted self-evaluations of effectiveness; however, in 2019 the Company 
enlisted the help of a third party to incorporate new viewpoints and enhance objectivity. We plan to have 
external organizations help with these evaluations periodically in the future. 
Evaluation Process in 2021
Review of Evaluation Results and Future Initiatives
Composition and Role of the Audit & Supervisory Board
Audit & Supervisory Board members audit the performance of directors by attending important meetings, 
including meetings of the Board of Directors and the Management Committee, and by holding regular 
meetings with representative directors. In 2021, the Audit & Supervisory Board convened on 14 occasions, 
at which it worked to conduct audits systematically and efficiently in accordance with the Corporate Policy 
over Internal Control, in order to properly oversee and verify whether the Group’s internal control system 
and its components—such as the compliance system, risk management system, and the system for ensuring 
the accuracy of the consolidated financial statements—have been adequately established and are function-
ing appropriately, as set out in the basic policy concerning the Group’s internal control system.
	
The Audit & Supervisory Board works in collaboration with the accounting auditor and the Internal 
Audit Division, which executes the internal audit function, to improve the effectiveness of audits by confirm-
ing audit results and information and exchanging views. There are four Audit & Supervisory Board members, 
three of whom (including one female member) are outside Audit & Supervisory Board members.* 
* As of March 30, 2022
1
  Self-evaluation based on questionnaires 
answered by directors and Audit & Supervisory 
Board members ­(November–December 2021)
The highlights of the evaluation are as follows: 
• Role of the Board of Directors and the state of delibera-
tions, etc.
• Size and composition of the Board of Directors: number 
of people, diversity, skills, etc.
• Administration of the Board of Directors: frequency of 
meetings, length of discussions, agenda setting, support 
structure for outside directors, etc.
• State of advisory committees (Nominating Committee, 
Compensation Committee): size, composition, adminis-
tration, collaboration with the Board of Directors, etc.
• Role of Audit & Supervisory Board members and expec-
tations placed on them
2
  Interviews of directors and Audit & 
Supervisory Board members (December 2021)
Each of our seven directors and four Audit & Supervisory 
Board members were interviewed to verify their answers 
to the questionnaire and elicit additional opinions. 
 
3
  Discussion by the Board of Directors 
(January 2022)
Based on the results of the self-evaluations, we compare 
the outcome with the results of the previous year’s evalua-
tion and verify the status of initiatives underway since last 
year. The Board of Directors analyzes and evaluates its 
overall effectiveness and sets policies for further 
improvement.
Regarding issues related to management strategies and business execution, we confirmed that 
the Board of Directors appropriately addresses such issues with lively discussions in an open 
atmosphere involving a small number of people. 
Review of Evaluation 
Results for 2020
AGC has sustained diversity in the composition of its Board of Directors. Based on their unique 
knowledge and experience, each Board member voiced their opinions on matters related to strate-
gies for increasing corporate value over the medium to long term, such as the business portfolio 
and non-financial indicators, as well as matters related to Groupwide internal controls and risk 
management. Lively discussions were held in an open atmosphere in small group settings. The 
overall effectiveness of the Board of Directors was verified. 
Review of Evaluation 
Results for 2021
1. Further strengthen corporate governance
• The Company will refine its method of setting agendas to enable more lively discussions by the 
Board of Directors on matters that are important to Group management, such as strengthening 
the business portfolio, sustainability management, and internal controls. 
• The Company will continue to discuss the diversity of the Board of Directors.
2. Further strengthen administrative support for the Board of Directors and continue 
to improve practices
• The Company aims to improve the efficiency of administration and the quality of discussions by 
working to improve the composition and content of briefing materials, as well as decide how 
they are presented prior to meetings of the Compensation Committee and Board of Directors. 
• The Company intends to help outside directors understand AGC better by continuing to hold off-site 
meetings and improve communication among directors in a bid to enliven discussions further.
Future Initiatives
1. Reverified roles and responsibilities of directors and Audit & Supervisory Board members
Through deep discussions, the roles and responsibilities of directors and Audit & Supervisory 
Board members were reverified via regular communication.
2. Strengthened administrative support for the Board of Directors while improving practices
We worked to clarify the materials presented to the Board of Directors and augment the pre-
briefing materials given to outside directors. 
3. Expanded use of off-site meetings
We expanded opportunities to use off-site meetings as a venue for directors to freely discuss 
important matters related to Companywide management, such as medium-term management 
plans, the business portfolio, non-financial indicators, and internal controls. 
Implementation 
of Improvement 
Measures
Agenda of the Sustainability 
Committee in 2021
82
Strategies for Our Management 
Foundations

Corporate Governance
Compensation System
Basic Philosophy on Compensation System
In its Compensation Principles, the AGC Group sets out its basic stance and philosophy on overall 
compensation for officers as follows.
• The compensation system shall be one that enables the Company to attract, secure, and reward diverse and 
talented personnel, in order to establish and expand the Company’s competitive edge over its peers.
• The compensation system shall be one that promotes continued improvement of corporate value, thereby allow-
ing shareholders and management to share gains.
• The compensation system shall be one that engenders motivation to achieve performance goals related to 
management strategies for the AGC Group’s continuous development.
• The decision-making process of determining compensation shall be objective and highly transparent.
Compensation Determination Method
The Compensation Committee deliberates on matters such as the compensation system and compensation 
amounts for directors and executive officers based on the Compensation Principles, makes proposals in that 
regard to the Board of Directors, and verifies the results of compensation payments in order to increase the 
objectivity and transparency of the compensation determination process.
Framework for Management Execution
At the AGC Group, the management execution function is the responsibility of executive officers below the 
president & CEO. As an advisory committee to the president & CEO, the Company established the 
Management Committee and discusses business management monitoring and decisions regarding business 
execution.
	
A system of in-house companies (quasi-subsidiaries within the Group) has been introduced and a global 
consolidated management system has been adopted with regard to business execution. Much of the 
responsibility and authority for business execution has been delegated to in-house companies and ­strategic 
business units.
Fixed compensation
 Monthly compensation
Board members 
President & CEO
Directors concurrently serving  
as executive officers 
(Excluding the president & CEO)
Directors who do not concur-
rently serve as executive officers 
(Representative directors and chairperson)
Independent directors
Composition of Executive Compensation
90%
10%
60%
40%
50%
25%
25%
40%
30%
30%
Variable compensation
Bonuses
Stock-based compensation
Composition of Compensation
For the AGC Group, which provides materials and solutions that aim to realize product development from a 
long-term perspective, medium- to long-term technological development and investments in human 
resources and equipment are sources of competitiveness, in addition to the Group’s single-year business 
strategy. Accordingly, the Group has introduced an incentive system as one of the means for AGC’s execu-
tive officers to take a balanced view of the short, medium, and long terms and to further motivate them to 
achieve their goals for each time frame. 
	
In addition to bonuses linked to organizational performance in a single year, the Group has introduced 
stock-based compensation, in which the number of shares granted is determined on the basis of perfor-
mance and other factors within the period of a given medium-term management plan. Under the stock-
based compensation system, executive officers granted shares must retain them during their terms of office, 
with the aim of motivating them to contribute to the improvement of corporate value over the medium to 
long term and to create shared interests between executive officers and shareholders.
	
In February 2021, the Company made the following changes to improve the effectiveness of its com-
pensation system, in accordance with its Compensation Principles.
• In view of the importance of asset efficiency as well as business profitability, the performance indicator for 
bonuses was changed from operating profit to return (operating profit) on capital employed, and the 
status of the improvement of non-financial capital, progress on business portfolio conversion, and other 
indicators were added as evaluation items.
• In order to further increase the willingness of executive officers to contribute to the improvement of cor-
porate value and promote the steady implementation of the new medium-term management plan, the 
performance evaluation method for stock-based compensation was changed to evaluate performance 
based on factors including the level of achievement of performance targets for each year.
The Support System Provided for Outside Directors and Outside Audit & 
Supervisory Board Members
The Corporate Planning General Division, the secretariat of the Board of Directors, notifies Outside Directors 
that Board of Directors’ meetings will be held, delivers related materials to them, and when needed, explains 
agenda items of the meetings to them in advance. The Secretariat of the Audit & Supervisory Board is 
tasked with assisting the duties of the Outside Audit & Supervisory Board members, including the convening 
of the Audit & Supervisory Board, participation in important meetings, and coordinating meetings with the 
Representative Directors, the Outside Directors, the Internal Audit Division, and the Accounting Auditor. 
Under the above support system, the members of the Board of Directors and the Audit & Supervisory Board 
supervise the business management of the Company by actively making questions and proposals based on 
their specialized experiences.
Compensation to Directors and Audit & Supervisory Board Members (2021)
Number of 
recipients
Total payment 
(millions of yen)
All directors*
8
764
Outside directors only
3
  56
Number of 
recipients
Total payment 
(millions of yen)
All Audit & Supervisory  
Board members
4
100
Outside Audit & Supervisory 
Board members only
3
  64
* Includes one director who retired in March 2021
Note: If none of the above applies, the matter is discussed within the Compensation Committee and the Board of Directors makes a resolution.
83
Strategies for Our Management 
Foundations

Corporate Governance
Bonuses
Stock-based compensation
Overview
An amount according to each executive 
officer’s position is adjusted in accordance 
with the level of consolidated performance 
indicators for a single year, in order to 
further enhance their motivation to achieve 
performance goals for a single year.
The plan is intended to enhance the motivation to contribute to 
medium- to long-term improvements in corporate value and to 
promote a sharing of interests with shareholders, as well as to 
further enhancing the motivation to achieve the performance goals 
in the medium-term management plan. Compensation under the 
plan consists of a performance-linked component, whereby the 
Company issues AGC shares—the number of which varies in accor-
dance with each executive officer’s position and their level of 
achievement of the consolidated performance indicators in the 
medium-term management plan—and a fixed component, whereby 
a fixed number of AGC’s shares are issued in accordance with each 
executive officer’s position.
Performance 
Indicators
Performance indicators shall be return 
(operating profit) on capital employed 
(calculated by dividing operating profit by 
operating assets) and cash flows, given the 
importance of improving business profit-
ability and asset efficiency, as well as of 
generating cash flows.
Performance indicators shall be return (operating profit) on capital 
employed (calculated by dividing operating profit by operating 
assets) to encourage achievement of the target for ROE—an impor-
tant performance target in the new medium-term management 
plan—and EBITDA, in consideration of the importance of achieving 
sustainable corporate profitability. Return (operating profit) on capital 
employed and EBITDA each account for 50% of the performance-
linked component.
Variable 
Elements
The amount shall vary in accordance with 
the level of achievement of the target for 
return (operating profit) on capital 
employed and the level of improvement of 
cash flows compared with the previous 
year. Further, the amount shall vary within a 
range of 0% to 200% of the standard 
payment amount, in principle, with consid-
eration for factors including the improve-
ment of non-financial capital and progress 
on business portfolio conversion as well as 
individual performance.
The performance-linked component is calculated as a weighted 
average with prescribed ratios (25% for the first year, 25% for the 
next year, and 50% for the final year) regarding the level of achieve-
ment of these indicators in each year during the medium-term 
management plan. In principle, the amount shall vary within a range 
of 0% to 200% of the standard amount. Executive officers shall 
continue to hold AGC shares acquired through the stock-based 
compensation system following the conclusion of the medium-term 
management plan until they retire from office.
Results for 
Compensation 
Based on 2021 
Performance 
Indicators
• Operating profit divided by operating 
assets was 10.9%, surpassing the target 
of 5.3%. 
• The cash flow indicator increased mark-
edly compared with the previous year.
• Based on these two indicators and the 
Groupwide extraordinary evaluation, the 
amount of bonuses to be paid to directors 
serving concurrently as executive officers 
was set at 153% of the standard pay-
ment amount.
• Return (operating profit) on capital employed was 11.1% in 2021, 
the first fiscal year of the medium-term management plan.
• EBITDA totaled ¥372.9 billion in 2021, the first fiscal year of the 
medium-term management plan.
Target for 
2022
The target for the return (operating profit) 
on capital employed indicator is 9.4% or 
more.
New Medium-Term Management Plan (2023) Targets
Levels of return (operating profit) on capital employed and EBITDA 
generally equivalent to an ROE of 8%, a 2023 target in the new 
medium-term management plan, are set as the baseline for targets. 
The target for return (operating profit) on capital employed is 7.0% 
or higher, while the EBITDA target is ¥344.0 billion or more.
Variable Compensation
Improvements in Corporate Governance
AGC has been working to strengthen and enhance its corporate governance since 2002. The 
Company added two outside directors in 2002. The AGC Group established a voluntary 
Nominating Committee and Compensation Committee in 2003, and in 2005 it implemented 
progressive activities such as appointing three independent directors. In 2011, an independent 
director was appointed as chairperson of the Board of Directors in order to further enhance the 
objectivity and transparency of management. Since then, the Group’s corporate governance 
system has continuously evolved.
2002
Clearly separated management 
auditing and management execution
2016
Established the AGC Group 
Corporate Governance Basic Policy
Board of 
Directors
Nominating 
Committee /
Compensation 
Committee
Executive 
officers
Compensation 
 system
2002
• Reduced number of directors 
from 20 for 7
• Invited outside directors 
(initially 2)
2011
• Made the chairperson of the 
Board of Directors an outside 
director
2019
• Started engaging outside 
organizations in evaluat-
ing the effectiveness of 
the Board of Directors
2005
• Increased number of outside 
directors from 2 to 3
2015
• Started evaluations of the effectiveness of the 
Board of Directors
2003
• Established a voluntary Nominating Committee 
and Compensation Committee
2017
• Made the chairpersons of the Nominating  
Committee and Compensation Committee 
independent directors
2018
• Moved to a new stock-based 
compensation system to replace 
the share-based compensation 
stock option system (executive 
compensation related to intro-
duction of the BIP Trust)
2002
•  Introduced an executive officer system
2007
• Introduced stock compensation-type stock 
options
History of AGC's Governance Reforms
84
Strategies for Our Management 
Foundations

Corporate Governance
AGC Group Three Lines of Defense Model
Senior Management (CEO, CFO/CCO, CTO)
The President and CEO, who is responsible for the management execution function, designs 
and operates the internal control system and risk management for the entire AGC Group.
Board of Directors 
The Board of Directors, which serves as the management oversight 
function, receives and monitors reports on the status of the AGC Group's 
internal control system and risk management.
Audit & Supervisory Board
Audit & Supervisory Board Members, 
as independent organizations 
entrusted by shareholders, shall audit 
the execution of duties by directors.
External Audit
Regulator
2nd Line of Defense
Establishes common rules for AGC 
Group as a whole or for specific 
groups, mainly regarding downside 
risk, and strives to improve the level 
of management of downside risk as 
well as monitor and provide support 
and guidance to other divisions.
3rd Line of Defense
Provides reasonable assurance and 
advice to internal control systems 
and risk management (mainly 
downside risk), independent from 
the 1st and 2nd lines.
1st Line of Defense
Designs and operates an internal 
control system for their own 
division. In addition, the 1st line 
owns and manages the risks of its 
divisions. 
Companies · SBUs
Affiliated Companies
AGC Corporate Divisions
AGC Internal Audit Division
The AGC Group’s Corporate Governance System
The AGC Group has set forth the promotion of sustainability management as one of its strategies in  
AGC plus-2023, its new medium-term management plan. In this sight, the Group is working to further 
strengthen its corporate governance. Specifically, to prevent scandals and compliance violations at its subsid-
iaries, the AGC Group has established management regulations on the governance and internal control 
systems thereof and implements any measures deemed necessary. The Group’s basic approach is for the 
parent company, AGC, to resolutely carry out management oversight of its subsidiaries while emphasizing 
the autonomous functioning of the Board of Directors and internal control system of each subsidiary.
The system for ensuring appropriate operations is as follows.
• With respect to governance, AGC conducts management oversight and supervision with objectivity and 
independence by dispatching an individual who previously served as president (or of a similar executive 
position) at a subsidiary and who also belongs to one of the corporate divisions of AGC to major subsidiaries 
in Japan and overseas as a temporary director-cum-auditor.
• In its risk management system, AGC manages downside risks, such as those related to legal and regulatory 
compliance and information security, in addition to business risks at subsidiaries based on the AGC Group 
Enterprise Risk Management Basic Policies. Specifically, after gauging the status of risk management at 
subsidiaries through periodic self-inspections, the divisions and business divisions under the jurisdiction of 
a certain corporate division collaborate to strengthen and implement measures in response to risks, 
thereby helping make improvements for the next year. As for crisis response, the Group has established a 
crisis response reporting line and maintains a system facilitating prompt and appropriate initial responses.
• Regarding its compliance system, AGC implements initiatives for ensuring observance of the AGC Group 
Code of Conduct and for raising awareness of and providing education on the code. The Group has also 
established a helpline, the operational conditions and status of consultations of which are reviewed and 
reported to the Board of Directors. In addition, the AGC Group maintains its compliance system by peri-
odically carrying out compliance awareness surveys.
	 For information on the AGC Group’s compliance system:
	
https://www.agc.com/en/csr/integrity/coc.html
	 For information on the AGC Group’s Corporate Policy on Internal Control:
	
https://www.agc.com/en/company/internalcontrol/
Post-Merger Integration in Mergers and Acquisitions
Since formulating its AGC plus Management Policy in 2015, the AGC Group has expanded its 
business through proactive mergers and acquisitions (M&As) in Strategic Businesses. With a view to 
making use of M&As, the Group has also laid out a strategy in AGC plus-2023 of accelerating 
business growth in Strategic Businesses and searching for new businesses. Regarding M&As, it is 
vital to achieve a smooth post-merger integration (PMI) process that helps deliver business synergies 
and maximize corporate value for the Group. In everything from management policy formulation to 
governance, management resources, and risk management, the AGC Group has established Group 
common practices and functions as important matters that make up its Groupwide foundations, 
which serve as common guidelines when implementing PMIs. Based on these practices and func-
tions, business divisions and other bodies within the Company gradually integrate companies 
acquired through M&As, beginning with key functions such as finance and accounting, sales sys-
tems and branding, quality assurance, and management accounting. We engage in dialogue with 
acquired companies and generally complete the integration process in less than six months, follow-
ing which we periodically monitor the status of integration. In addition, we improve organizational 
knowledge as a group by carrying out reviews at meetings of the Management Committee and the 
Board of Directors, which include progress on PMI status for important projects within one to two 
years following integration.
Reporting, 
guidance
or advice
Note 1: These risks are factors that may hinder the achievement of goals and are classified as business strategy risk and 
downside risk. Unless otherwise stated, “risk” includes both above risks. Downside risk is cross-businesses risk 
related to compliance, the environment, disasters, quality, and others. (Excerpt from “AGC Group Risk 
Management Implementation Regulation”)
Note 2: In-house Companies and SBUs have established various systems for managing affiliated companies, including a 
“2nd line of defense” function (in such organization as Business Planning & Administration Office, CSR Office) for 
them. The AGC Corporate Divisions provide support and guidance to affiliated companies in cooperation with 
these organizations.
85
Strategies for Our Management 
Foundations

Board of Directors, Audit & Supervisory Board Members, and 
Executive Officers (As of April 1, 2022)
Board of Directors and Audit & Supervisory Board Members
Apr.	1980	
Joined Asahi Glass
Jan.	 2009	
Executive Officer and GM of Planning & Coordination Office, 
Chemicals Company
Jan.	 2010	
Executive Officer and Chemicals Company President
Jan.	 2013	
Senior Executive Officer and Electronics Company President
Jan.	 2015	
President & CEO
Mar.	2015	
Representative Director and President & CEO
Jan.	 2021	
Director and Chairperson (current position)
Takuya Shimamura
Director, Chairperson
Apr.	1987	
Joined Asahi Glass
Jan.	 2012	
Executive Officer and GM of Business Development Office
Jan.	 2014	
Senior Executive Officer and GM of Technology General 
Division
Mar.	2014	
Director and Senior Executive Officer and CTO, GM of 
Technology General Division
Jan.	 2016	
Director and Senior Executive Officer, CTO, GM of 
Technology General Division
Jan.	 2018	
Director and Executive Vice President and CTO, GM of 
Technology General Division
Jan.	 2021	
Representative Director and President & CEO  
(current position)
Yoshinori Hirai
Representative Director,
President & CEO
Aug.	1990	
Joined Asahi Glass
Jan.	 2010	
Executive Officer and Group Leader of Corporate Planning 
Group, Office of the President
Nov.	2012	
Executive Officer and Senior Vice President of AGC Flat 
Glass North America, Inc.
Feb.	2013	
Executive Officer and Regional President of North America, 
Glass Company
Oct.	 2013	
Executive Officer and GM of Strategy Office, Glass 
Company
Jan.	 2014	
Executive Officer and GM of Electronics General Division, 
Electronics Company
Jan.	 2015	
Senior Executive Officer and GM of Office of the President
Mar.	2015	
Director and Senior Executive Officer and GM of Office of 
the President
Jan.	 2016	
Director and Senior Executive Officer, CFO and GM of 
Corporate Planning Division
Jan.	 2018	
Director and Executive Vice President, CFO and CCO
Oct.	 2019	
Director and Executive Vice President, CFO and CCO, GM 
of Corporate Planning General Division
Mar.	2020	
Representative Director and Senior Executive Vice President, 
CFO, CCO and GM of Corporate Planning General Division 
(current position)
Shinji Miyaji
Representative Director and 
Senior Executive Vice 
President,
CFO, CCO
GM of Corporate Planning 
General Division
Apr.	1987	
Joined Asahi Glass
Jan.	 2018	
Executive Officer and GM of Life Science General Division, 
Chemicals Company
Jan.	 2019	
Senior Executive Officer and GM of Technology General 
Division
Jan.	 2021	
Senior Executive Officer, CTO, and GM of Technology 
General Division
Mar.	2021	
Director, Senior Executive Officer, CTO, and GM of 
Technology General Division (current position)
Jan.	 2022	
Director, Executive Vice President and CTO, GM of 
Technology General Division
Mar.	2022	
Representative Director, Executive Vice President and CTO, 
GM of Technology General Division
Apr.	2022	
Representative Director, Executive Vice President and CTO, 
GM of Technology General Division, GM of Business 
Development Division (current position)
Hideyuki Kurata
Representative Director,
Executive Vice President, 
CTO,
GM of Technology General 
Division,
GM of Business 
Development Division
Apr.	1982	
Joined Shionogi & Co., Ltd.
Jun.	 2002	
Director of said company
Apr.	2004	
Director and Executive Officer of said company
Apr.	2006	
Director and Senior Executive Officer of said company
Apr.	2008	
Director, President & CEO of said company (current 
position)
Mar.	2022	
Director, AGC (current position)
Isao Teshirogi
Outside Director,
Chairperson of 
Compensation Committee,
Member of Nominating 
Committee
Apr.	1978	
Joined Yamaha Motor Co., Ltd.
Mar.	2007	
Executive Officer of said company
Mar.	2009	
Senior Executive Officer of said company
Mar.	2010	
President & CEO and Representative Director of said 
company
Jan.	 2018	
Chairperson and Representative Director of said company
Mar.	2019	
Director at AGC (current position)
Jan.	 2022	
Director, Yamaha Motor Co., Ltd.
Mar.	2022	
Advisor of said company (current position)
Hiroyuki Yanagi
Outside Director,
Chairperson of the Board of 
Directors,
Member of Nominating 
Committee and 
Compensation Committee
Apr.	1984	
Joined Bain & Company Japan Incorporated
May	1986	
Joined Shearson Lehman Brothers Securities Co., Ltd.
Jul.	 1989	
Joined McKinsey & Company, Inc., Japan
Jul.	 1999	
Partner of said company
Jul.	 2007	
Director (Senior Partner) of said company
Jul.	 2013	
Executive Vice President & CEO of Multilateral Investment 
Guarantee Agency, World Bank Group
Oct.	 2019	
Retired from said agency
Jan.	 2020	
Adjunct Professor of Columbia University in the United States 
(current position)
Mar.	2020	
Director at AGC (current position)
Keiko Honda
Outside Director,
Chairperson of Nominating 
Committee,
Member of Compensation 
Committee
86
Strategies for Our Management 
Foundations

Board of Directors, Audit & Supervisory Board Members, 
and Executive Officers
Executive Officers
President & CEO
Yoshinori Hirai
Senior Executive Vice President
Shinji Miyaji
CFO, CCO, GM of Corporate 
Planning General Div.
Executive Vice Presidents
Masao Nemoto
President of Chemicals Company
Kenzo Moriyama
President of Electronics Company
Hideyuki Kurata
CTO, 
GM of Technology General Div., 
GM of Business Development Div.
Senior Executive Officers
Shigekuni Inoue
GM of EHSQ General Div., 
GM of AGC Yokohama Technical Center
Toshiro Kasuya
GM of Finance & Control Div.
Yoshio Takegawa
President of Automotive Company
Junichi Kobayashi
GM of Human Resources Div.
Executive Officers
Seigo Washinoue
GM of Display Glass General Div.,  
Electronics Company
Tatsuo Sugiyama
GM of Technology Office, Automotive Company
Jean-Marc Meunier
Regional President for Europe, Automotive Company
Naoki Sugimoto
GM of Materials Integration Laboratories,  
Technology General Div.
Philippe Bastien
Regional President for Europe, Architectural Glass Europe & 
Americas Company 
Toshihiro Ueda
Chief Representative of AGC Group for China
Atsushi Ichikawa
Senior Vice President, Architectural Glass Europe & 
Americas Company
Satoshi Takada
GM of Multi-Material General Div., Electronics Company
Nobuyuki Suzuki
GM of Electronic Materials General Div., Electronics 
Company
Hiroki Kamiya
GM of Innovative Technology Laboratories, Technology 
General Div.
Shinya Mine
GM of Production Technology Div., Technology General Div.
Naoko Araki
GM of Internal Audit Div.
Tadashi Murano
GM of Strategy & Planning Div., 
Corporate Planning General Div.
Masaru Ota
President of AGC Ceramics Co., Ltd.
Noriyuki Komuro
GM of Life Science General Div., Chemicals Company
Takashi Narushima
GM of Global OEM Management Office, 
Automotive Company 
Davide Cappellino
President of Architectural Glass Europe & Americas 
Company, Regional President for Europe 
Hiroyuki Ohtani
Regional President for Asia, Automotive Company
Shigeki Yoshiba
President of Architectural Glass Asia Pacific Company
Shunsuke Yokotsuka
GM of Planning Div., Technology General Div.
Seigo Iwakura
GM of Purchase & Logistics Div.
Tatsuo Momii
GM of Performance Chemicals General Div., Chemicals 
Company
Yasuyuki Ueda
GM of Technology Management General Div., 
Chemicals Company
Yoshihisa Horibe
GM of Essential Chemicals General Div.,  
Chemicals Company
Apr.	1978	
Joined Hitachi, Ltd.
Apr.	2011	
Vice President and Executive Officer of said company
Apr.	2013	
Senior Vice President and Executive Officer of said company
Apr.	2014	
Executive Vice President and Executive Officer of said 
company
Apr.	2015	
Director and Deputy Chairperson, Hitachi Europe Ltd.
Jul.	 2016	
Director and Chairperson, Hitachi Research Institute
Apr.	2017	
Executive Officer and Chairperson, Hitachi Construction 
Machinery Co., Ltd.
Jun.	 2017	
Director, Executive Officer and Chairperson of said company
Apr.	2019	
Director of said company
Jun.	 2019	
Retired from said company 
President, The Hitachi Global Foundation (current position)
Mar.	2022	
Audit & Supervisory Board Member (current position)
Tatsuro Ishizuka
Audit & Supervisory Board 
Member (Outside)
Apr.	1981	
Joined Bridgestone Tire Co., Ltd.  
(currently Bridgestone Corporation)
Mar.	2008	
Vice President and Officer of said company
Mar.	2011	
Vice President and Senior Officer of said company
Mar.	2012	
Director and Vice President and Senior Officer of  
said company
Jan.	 2013	
Director and Senior Vice President,  
CTO Responsible for Technology of said company
Mar.	2015	
Executive Vice President
Mar.	2016	
Advisor of said company
Dec.	2017	
Retired from said company
Mar.	2019	
Audit & Supervisory Board Member (current position)
Yoshiyuki Morimoto
Audit & Supervisory Board 
Member (Outside)
Apr.	1982	
Joined AGC
Jan.	 2009	
Executive Officer and GM of Finance & Accounting Center
Jul.	 2009	
Executive Officer and Deputy GM of Finance & Control 
Office
Apr.	2010	
Executive Officer and Vice President, Planning and 
Coordination, Glass Company
Jan.	 2013	
Executive Officer and GM of Finance & Control Office
Jan.	 2015	
Senior Executive Officer and GM of Finance & Control 
Office
Jan.	 2016	
Senior Executive Officer and GM of Finance & Control 
Division
Jan.	 2017	
Senior Executive Officer and Assistant to CEO
Mar.	2017	
Audit & Supervisory Board Member (full-time) 
(current position) 
Tetsuo Tatsuno
Audit & Supervisory Board 
Member
Apr.	1985	
Registered as an Attorney (Daini Tokyo Bar Association)
Jan.	 2007	
Joined KOHWA SOHGOH LAW OFFICES (current position)
Mar.	2019	
Audit & Supervisory Board Member (current position)
Yaeko Takeoka
Audit & Supervisory Board 
Member (Outside)
87
Strategies for Our Management 
Foundations

Name
Position
Global corporate management Legal affairs and internal controls
Finance and accounting
Sales and marketing
Production and R&D
IT and digital transformation 
Sustainability
Business development
Takuya Shimamura
Representative director 
〇
〇
〇
Yoshinori Hirai
Representative director, 
president & CEO
〇
〇
〇
〇
〇
〇
Shinji Miyaji
Representative director 
CFO, CCO
〇
〇
〇
〇
〇
〇
Hideyuki Kurata
Representative director, CTO
〇
〇
〇
〇
〇
Yasuchika Hasegawa
Outside director
〇
〇
〇
Hiroyuki Yanagi
Outside director
〇
〇
〇
〇
〇
Keiko Honda
Outside director
〇
〇
〇
Yoshiyuki Morimoto
Full-time Audit & Supervisory 
Board member (outside)
〇
〇
〇
〇
Tetsuo Tatsuno
Full-time Audit & Supervisory 
Board member
〇
〇
〇
Akio Sakumiya
Audit & Supervisory Board 
member
〇
〇
Yaeko Takeoka
Audit & Supervisory Board 
member (outside)
〇
〇
Reason for Selection of Each Skill and Definitions of Skills
Skills of Directors and Audit & Supervisory Board Members
Skills
Definitions of skills
Basic special-
ized skills
Global corporate 
management
The ability to manage a corporation from a global perspective, the perspective of business portfo-
lios, and human resource management
Global management
The ability to manage a corporation from a global perspective
Business portfolio 
management
The ability to optimally allocate management resources while considering an optimal balance of 
businesses
Human resource 
management
The ability to nurture and manage human resources related to management strategy
Legal affairs and internal 
controls
The ability to properly understand and manage risks with knowledge of legal matters and internal 
controls
Finance and accounting
The ability to propose financial strategies linked to management strategies with knowledge of 
financial and accounting matters
Diverse special-
ized skills
Sales and marketing
The ability to propose sales and marketing strategies while understanding the needs of customers
Production and R&D
The ability to develop new products through research and technological innovation, as well as to 
operate and improve production systems
Production
The ability to manage and reform production organizations with knowledge of manufacturing 
technologies, as well as of production and quality management
R&D
The ability to develop new products using research and technological innovation
IT and digital transformation
The ability to reform business models and business processes using data and digital technologies
Sustainability
The knowledge of sustainability necessary to balance the sustained growth of a corporation and 
the sustained growth of the planet and society
Environment
The knowledge necessary to balance a sustainable global environment with the sustainable growth 
of a corporation
Non-environment
The knowledge necessary to balance the sustainable growth of a corporation with domains other 
than a sustainable global environment
Business development
The ability to create and promote new businesses while understanding the needs of customers
The AGC Group uses a skills matrix for the purpose of verifying whether human 
resources are being properly selected by providing a visual representation to deter-
mine if the compositions of the Board of Directors and Audit & Supervisory Board 
are well balanced in terms of knowledge, skills, and experience. There are eight 
skill categories that relate to corporate governance, strategic coherence, and busi-
ness characteristics. The Company examines whether it is necessary to reassess 
these skills when the corporate governance structure changes and when new 
medium-term management plans are formulated. 
Perspectives
1 Corporate Governance
Aligned with functions required by the Board of Directors (advisory and monitoring)
2 Strategic Coherence
Key strategies of AGC plus-2023
• Pursuing Ambidextrous Management  • Promoting Sustainability Management
• Gaining Competitiveness by Accelerating Digital Transformation
3 Business Characteristics
Includes diverse specialized skills
Note: Period of appointment: from April 2021 to March 2022
Board of Directors, Audit & Supervisory Board Members, 
and Executive Officers
88
Strategies for Our Management 
Foundations

Progress Being Made in Strengthening Governance
Steadily Evolving and Bolstering Governance in Line with  
the AGC’s Group Vision
 Hasegawa   Article 2 of the AGC Group Corporate Governance Basic Policy states, “The pur-
pose of the Basic Policy is to reinforce and improve the Company’s corporate governance, so 
that the AGC Group may achieve both sustainable growth and medium to long-term enhance-
ment of corporate value under the AGC’s Group Vision that sets forth Our Mission, Our Shared 
Values, and Our Spirit.” As I recall, the Group’s efforts to strengthen corporate governance have 
been exactly in accordance with these words. Moving forward steadily, the Group has not 
focused on the strengthening of governance as an end in itself but has instead focused on the 
advancement of management strategies that enhance corporate value.
 Hirai   Looking back, 2002 was a watershed year. At the time, we were facing a slump in the 
profits of the Architectural Glass Business, which was and still is a mainstay business. In 
response, we transitioned to a strategy of expanding the Display, Electronic Materials, and 
Fluorochemicals & Specialty Chemicals businesses. Then, to speed up business management, the 
AGC Group introduced an executive officer system and shifted to an in-house company system. 
At the same time, we separated the supervision and execution of business management and 
strengthened supervision by reducing the number of directors from 20 to seven and appointing 
two outside directors. Since then, we have steadily bolstered governance, as you said, and 
evolved it through the establishment of the voluntary Nominating and Compensation commit-
tees, the appointment of an additional outside director, and the decision to appoint an outside 
director as chairperson of the Board of Directors. We place particular emphasis on the type of 
people we ask to serve as outside directors, and some of the outside directors we have 
appointed, like you, have firsthand experience in managing businesses in the global manufactur-
ing sector. I am very grateful for the frank, and sometimes critical, opinions provided by the 
outside directors who have worked with us. In addition to their valuable input on governance 
matters, I appreciate their advice on overall business management, including such issues as how 
best to transform the Group’s business portfolio.
 Hasegawa   When strengthening governance in my capacity as chairperson of the Board of 
Directors, I have found the annual evaluations and analysis of the Board’s effectiveness very help-
ful, as they highlight trends in governance-related issues and clarify the improvement measures 
required. The AGC Group Corporate Governance Basic Policy stipulates, “Outside directors shall 
hold meetings consisting of outside directors and exchange information on and share their 
Discussion between the Chairperson  
of the Board and the CEO
Yasuchika Hasegawa and Yoshinori Hirai, AGC’s president & CEO,  
recently had a wide-ranging discussion on the progress being made in strengthening the  
governance of the AGC Group as well as the challenges it faces going forward.
Yasuchika Hasegawa
Yoshinori Hirai
Representative Director, 
President & CEO
Until retiring as a director of AGC in March 2022, Yasuchika 
Hasegawa served as the chairperson of the Board of 
Directors. He has also served as the director, president & CEO 
as well as the director and chairperson of the board of Takeda 
Pharmaceutical Company Limited. Drawing on his wealth of 
experience in the corporate management of this company, 
which is proactively advancing business management 
globalization in the life science market, he provided recom-
mendations on the overall business management of AGC, 
including the globalization of its business management.
Years of service as a director: Five (retired on March 30, 2022)
89
Strategies for Our Management 
Foundations

recognition of matters concerning the corporate governance of AGC and other matters based on 
their independent and objective standpoints.” In 2021, however, we were unable to hold such 
meetings due to the COVID-19 pandemic. Many audits had to be conducted online rather than 
on-site, and after Board of Directors’ meetings the chairperson, the CEO, and the three outside 
directors were unable to meet and further discuss matters in a less formal atmosphere, as they did 
previously. I feel that the aforementioned evaluations will prove useful in underscoring issues that 
have arisen as a result of this reduction in in-person meetings due to the COVID-19 pandemic.
 Hirai   I became a director in 2014, and we began evaluating the Board of Directors’ effectiveness 
in 2015. At the time, the AGC Group was performing poorly. Operating profit had been trending 
downward for four fiscal years. With these business results as a backdrop, we initially evaluated 
the Board’s effectiveness by calling a non-boardroom meeting that was dedicated to discussing 
the Group’s governance. This meeting was held before we had begun annual questionnaire-based 
surveys. In 2018 and 2021, we convened similar meetings, which were very fruitful. Moreover, the 
introduction of such meetings led to the holding of meetings designed to encourage uninhibited 
discussions on the AGC Group’s long-term strategic direction among inside and outside directors. 
At venues other than the boardroom, we convened discrete meetings tasked with debating the 
long-term management strategy and medium-term management plans.
 Hasegawa   You mentioned the long-term management strategy, Vision 2030. Both internally 
and externally, the AGC Group has clearly set out Vision 2030 and worked toward its realiza-
tion. This management approach appropriately reflects the emphasis on long-term perspectives 
that has long been characteristic of the Group. In addition, goals that are overly specific and 
detailed can make business management rigid; however, goals that are too vague can diminish 
the sense of urgency to achieve them. In this respect, I think the Group’s balanced approach to 
setting goals has been prudent and succeeded in 
giving business management useful flexibility.
 Hirai   Thank you. The basis of our long-term perspec-
tive is the AGC’s Group Vision “Look Beyond”, 
which we established in 2002. The excerpt from the 
AGC Group’s Corporate Governance Basic Policy 
that you quoted at the beginning of our discussion 
shows that this vision also guides the r­einforcement 
and improvement of our corporate governance. In 
particular, Our Shared Values—Innovation & 
Operational Excellence, Diversity, the Environment, and Integrity—are founded on a commitment 
to governance reform. I believe that the setting out of common values for all Group employees in 
2002, when we dramatically changed our approach to business management, is one reason why 
we have made steady progress in strengthening governance.
Future Challenges
Increasing Diversity to Continue Innovation
 Hasegawa   One of the AGC Group’s governance tasks is to increase the diversity of the man-
agement team. In recent years, the promotion of female and non-Japanese employees in the 
Group has not tangibly improved. However, the December 2021 setting of numerical targets for 
increasing the percentages of female directors, executive officers, and managers to be achieved 
by 2030 is a step in the right direction.
	
An increase in the hiring and promotion of female and non-Japanese personnel is a prereq-
uisite for management team diversification. According to projections, by 2065 there are likely to 
be decreases of about 30% in the overall population of Japan and 40% in its working-age pop-
ulation compared with current levels. Therefore, workforce diversification presents an unavoid-
able challenge not only for the AGC Group but for all domestic companies. Meanwhile, few 
Japanese manufacturers are adequately responding to this challenge, and I am well aware that 
many of them are struggling with it. Nonetheless, I hope that you will refer to the examples 
provided by those companies that are successfully tackling this challenge and endeavor to take 
even a half-step forward.
 Hirai   I also see diversity as a major issue. The AGC Group has been concentrating on business 
portfolio transformation. However, the medium-term management plan, AGC plus-2023, 
which we announced in 2021, clearly establishes the promotion of sustainability management 
as another important focus of our efforts. In sustainability management, diversity is a compo-
nent particularly relevant to our governance.
	
Further, in advancing business portfolio transformation, the AGC Group has announced both 
internally and externally the goal of recapturing its founding spirit to create a culture that encour-
ages ambitious initiatives. By demonstrating that I have taken it upon myself to take on the chal-
lenge of developing new businesses, we have initiated a virtuous cycle in which employees have 
a real sense of change and develop an appetite for new ventures.
Discussion between the Chairperson of the Board and the CEO
90
Strategies for Our Management 
Foundations

Now, we are taking the next step in business portfolio transformation. To enable this coming 
advance, we need a culture based on diversity. I believe this because a combination of bold 
initiatives and diversity is essential for continued innovation. In particular, I feel that innovative 
ideas are less likely to be produced by a workforce that mainly comprises personnel with similar 
backgrounds. Accordingly, a culture that further empowers non-Japanese and female employees 
is essential. We have set the numerical targets you mentioned, such as increasing the percent-
age of female directors, not only to signal our intentions to investors but also to change the 
mindset of our employees.
 Hasegawa   With respect to non-Japanese employees, one of the AGC Group’s main overseas 
market is Asia, and there are many excellent technical personnel in such countries and regions 
as Southeast Asia, China, and India, which is expected to grow. Therefore, we should first focus 
on recruiting and promoting talented personnel from these countries and regions. This will take 
time, but I believe that the Group will be able to take the next step in its globalization if a cycle 
can be established in which the Group hires talented personnel who then strengthen businesses 
and thereby attract additional talent.
	
Further, as discussions on the quantification of non-financial information intensify, a trend 
toward quantifying the value of human resources has emerged. As you mentioned earlier, providing 
investors with supporting numerical targets and data is set to become more important than ever.
 Hirai   I agree.
Expectations of the AGC Group
Increasing Corporate Value Continuously through Ambidextrous Management
 Hasegawa   In analyzing corporate entities like the AGC Group that straddle diverse industries, 
overseas investors tend to arrive at valuations influenced by the conglomerate discount phe-
nomenon. Of course, the AGC Group is one of the few companies that have succeeded in prac-
ticing ambidextrous management, based on its Core and Strategic Businesses. However, to gain 
the understanding of non-Japanese investors, the Group should offer systematic analysis based 
on performance numbers and in-depth explanations that show conglomerate discounts to be 
inappropriate for valuing the Group. In fact, the term “conglomerate premium” is applicable to 
the Group’s current situation. I would like the AGC Group to increase its corporate value con-
tinuously through the maintenance of ambidextrous management and the accompanying con-
glomerate premium. Doing so would be a brilliant achievement that would overturn 
conventional management wisdom.
	
I lived in Chicago for about 10 years. At 
the time, the city was home to an extraordi-
nary basketball player named Michael 
Jordan, who I remember made a comment 
about winning being contagious. That is to 
say, no matter how small the victory, it leads 
to subsequent victories and ultimately pre-
pares the way for major victories. To achieve 
even the smallest victory, we must begin by 
taking up a challenge. Earlier, you men-
tioned a culture that encourages ambitious 
initiatives. I believe that this culture has fostered small victories, which have in turn led to the 
AGC Group’s current achievements.
	
Planted by you, the seeds of these small victories have sprouted and become flowers in full 
bloom. In other words, the seeds have produced the Strategic Businesses. I look forward to 
seeing you accelerate the growth of these Strategic Businesses even further so that they gener-
ate half of the ¥300.0 billion in operating profit that the Group aims to realize by fiscal 2030. I 
also hope that you sow the seeds of new victories and cultivate them into Strategic Businesses 
that become mainstays in the period beginning 2030.
 Hirai   The AGC Group uses a combination of technologies related to the fields of inorganic 
chemistry, organic chemistry, and biotechnology (biochemistry), and there are very few corpo-
rate groups with a comparable mix of competencies. For example, the Electronics Business, 
which is a Strategic Business, is combining inorganic and organic technologies to increase its 
lineup of differentiated products. I believe that accumulating successful examples through the 
creation of such products is a precondition for demonstrating the advantages that we enjoy as a 
conglomerate. Your expectations coincide with my own sense of mission. For this reason, I am 
fully prepared to live up to such expectations by continuing to forge ahead with bold initiatives. 
In closing, I would like to thank you for taking time out of your busy schedule to discuss and 
offer valuable insight on a wide range of important matters.
Discussion between the Chairperson of the Board and the CEO
91
Strategies for Our Management 
Foundations

Hiroyuki Yanagi 
Chairperson of the Nominating Committee (currently chairperson of 
the Board of Directors)
Hiroyuki Yanagi has served as the president,
CEO and representative director as well as the chairperson and 
director of Yamaha Motor Co., Ltd. Based on his abundant experience 
in the corporate management of this company, which is proactively 
advancing global expansion in the mobility market, he provides recom-
mendations on the overall business management of AGC, including the 
strengthening of the development of the Company’s global businesses. 
Years of service as a director: Three (as of March 30, 2022)
A Message from the Chairperson  
of the Nominating Committee
Evaluating Nomination Processes from Five Viewpoints 
The primary role of the Nominating Committee is to nominate the CEO and other direc-
tors. In the nomination process, I believe in the importance of increasing transparency, 
including during the processes leading up to nomination. When evaluating the adequacy 
and appropriateness of these processes, I focus on five viewpoints. First, has a system for 
fostering management personnel been built? Second, are personnel nomination processes 
based on objective, unbiased evaluations that include quantitative evaluations? Next, I 
examine the processes in the context of society’s current expectations and standards. The 
fourth viewpoint pays particular attention to whether personnel nomination processes 
occasionally lead to innovative disruption, rather than simply perpetuating existing 
approaches. The last consideration is differentiation. In other words, do the processes 
reflect AGC’s unique characteristics?
Integrating Human Resource Strategies and Nomination Processes 
When I assessed AGC’s nomination processes from the aforementioned five viewpoints, 
the diversity of directors emerged as an issue. From the third viewpoint of holding up said 
processes against society’s current expectations and standards, AGC has not made suf-
ficient progress in appointing non-Japanese personnel to the senior management team, 
despite being a corporate group that operates globally. The Company needs to increase 
the presence of non-Japanese personnel while establishing a better-balanced mix of per-
sonnel from such countries and regions as the United States, Europe, and Asia. In addi-
tion, not enough female personnel are being promoted, an area in which many Japanese 
manufacturers are falling short. The above issues also speak to my fourth viewpoint, 
which asks if personnel nomination processes engender innovative disruption. With this in 
mind, I feel AGC should be more decisive in promoting non-Japanese, female, and junior 
personnel.
	
Based on this view of the issues, the Nominating Committee has been involved with 
human resource strategies and efforts to integrate them with nomination processes. In 
2021, the committee began full-fledged discussions on human resource strategies, mainly 
discussing the empowerment of female personnel and making recommendations as 
appropriate. I have shared with AGC’s directors the example of the three overseas subsid-
iaries of Yamaha Motor headed by female presidents, and I believe it is important to 
establish examples of female empowerment that are unique to AGC.
Achieving Innovation through Proactive Governance
Innovation is born when different elements combine, including combinations of different 
people, technologies, and values. The more diverse the combinations, the easier it is to 
innovate. This is why companies need many kinds of diversity. Moreover, the diversity of 
directors is an important facet of the diversity companies must have. 
	
Three years have passed since I became an outside director at AGC. During this time, I 
have had opportunities to talk not only with management but also with frontline employees. 
As a result, I have come to realize that, at all levels of the Company, employees are 
extremely passionate about technology. I also get a sense of this enthusiasm within the 
Board of Directors. Often, the defensive aspects of governance are emphasized. However, 
I hope AGC strengthens proactive governance that accelerates innovation. Under such 
governance, the passion of AGC employees will drive innovation.
Discussion between the Chairperson of the Board and the CEO
92
Strategies for Our Management 
Foundations

Keiko Honda
Chairperson of the Compensation Committee  
(Currently chairperson of the Nominating Committee)
A Message from the Chairperson  
of the Compensation Committee
Seeking a Compensation System That Maximizes Corporate Value
I would like to establish a compensation system that motivates the senior management 
team to maximize the corporate value of the AGC Group. In the enhancement of corpo-
rate value, profit growth is not the sole important factor. Raising asset efficiency to gener-
ate returns that exceed the cost of capital and thereby generate positive cash flows is also 
essential. The importance of such factors has been discussed at meetings of the Board of 
Directors and other forums. Directors have taken these discussions to heart, and return on 
capital employed (ROCE) has become a key element in the determination of compensation.
	
Thanks to the efforts of directors and employees, in fiscal 2021 consolidated ROCE 
improved markedly year on year, from 4.1% to 11.0%. Consequently, ROE reached 
10.2%, above the cost of capital. Thus, in the fiscal year in question the Company made 
considerable progress toward maximizing corporate value. 
Developing a Compensation System That Reflects the Growing Importance 
of Sustainability
Sustainability is becoming increasingly important in corporate management. In 2021, the 
Intergovernmental Panel on Climate Change reported that climate change is advancing 
faster than previously expected. As the AGC Group operates businesses that require a 
great deal of energy in their manufacturing processes, addressing climate change is one of 
the Group’s most important management issues. Mindful of this, the Board of Directors 
spends a reasonable amount of time discussing sustainability issues. Given the various 
environmental issues, I would like the Compensation Committee to consider incorporating 
sustainability factors into the compensation system. 
	
Further, as the compensation system is meant to motivate the senior management 
team, we are also considering whether the system can be made more readily understand-
able. In addition, the AGC Group is a global company, with certain directors based in Japan 
and others based overseas. Although employment regulations differ from country to coun-
try, as far as possible we need to create a compensation system that is fair for all directors.
Transforming the Business Portfolio
At an early stage, the AGC Group began comprehensive efforts to strengthen gover-
nance. In Japan, it is one of the few corporate groups with independent outside directors 
serving as the chairpersons of the Board of Directors and the Nominating and 
Compensation committees. Moreover, I am not the first female director appointed to the 
Board. I also feel that the Group has excellent governance and a culture that welcomes 
the expression and discussion of diverse opinions at Board meetings. 
	
At present, the Group is reaping the benefits of an “ambidextrous” approach to busi-
ness management and is steadily transforming the business portfolio. However, the man-
agement of businesses that are at various stages in their life cycles is not easy. Which 
businesses should management resources be allocated to? How much should be allo-
cated? How much capital should be earmarked for R&D expenditures and capital invest-
ments? In grappling with such dilemmas, the achievement of properly functioning 
governance will be more important than ever, presenting directors with a new challenge. 
My hope is that, by realizing even more sophisticated governance, directors can further 
grow the Group’s Strategic Businesses and transform the business portfolio.
Before becoming an adjunct professor specializing in environ-
mental, social, and governance (ESG)-related investment at 
Columbia University in the United States, for many years Keiko 
Honda was engaged in consulting work on corporate strategy, 
M&As, and alliances at McKinsey & Company, Inc., and other 
firms, in addition to serving as the representative of a multina-
tional organization. Utilizing her extensive knowledge on the 
management of corporations and global organizations, she 
provides expert recommendations on the AGC’s overall 
business management. 
Years of service as a director: Two (as of March 30, 2022)
Discussion between the Chairperson of the Board and the CEO
93
Strategies for Our Management 
Foundations

Financial Data
Organizations covered in the report: AGC Inc. and its consolidated subsidiaries
Reporting period: January 1 to December 31
(Millions of yen)
2013
2014
2015
2016
2017
2018
2019
2020
2021
Business Results
Net sales
¥1,320,006
¥1,348,308
¥1,326,293
¥1,282,570
¥1,463,532
¥1,522,904
¥1,518,039
¥1,412,306 
¥1,697,383
Operating profit
79,894
62,131
71,172
96,292
119,646
120,555
101,624
75,780 
 206,168
Profit before taxes
44,381
41,163
84,522
67,563
114,424
128,404
76,213
57,121 
 210,045
Recurring profit
19,023
20,475
46,287
53,362
79,297
101,991
55,515
41,164 
 159,062
Profit for the year attributable 
to owners of the parent
16,139
15,913
42,906
47,438
69,225
89,593
44,434
32,715 
 123,840
Depreciation
135,751
137,200
137,381
121,803
128,226
121,668
143,361
143,716 
 166,756
CAPEX
138,480
118,170
125,103
126,025
165,095
230,598
207,661
241,348 
 216,503
Research and development 
expenses
46,882
44,758
38,927
39,212
43,912
45,755
47,450
46,444
 49,444
Cash flows from operating 
activities
167,371
135,790
187,170
203,637
203,504
189,287
191,906
225,392 
 326,713
Cash flows from investing 
activities
(145,978)
(108,754)
(115,951)
(113,596)
(209,560)
(194,450)
(182,636)
(230,248)
 (123,787)
Free cash flow
21,392
27,035
71,218
90,041
(6,055)
(5,162)
9,269
(4,855)
202,926
Major Investment Indicators
Market value
¥   755,867
¥   680,791
¥  804,604
¥   920,461
¥1,102,752
¥  758,663
¥   869,552
¥   796,764
¥1,216,595
Return on equity attributable 
to owners of the parent*1
1.6%
1.4%
3.9%
4.3%
6.1%
7.7%
3.9%
2.9%
10.2%
Return on assets*2
4.0%
3.0%
3.5%
4.8%
5.7%
5.4%
4.4%
3.1%
7.9%
Price/earnings ratio (PER) 
(times)
46.81
42.77
18.75
19.40
16.15
8.59
19.57
24.35
9.82
Price/book value ratio (PBR) 
(times)
0.70
0.61
0.74
0.84
0.93
0.67
0.75
0.71
0.93
Return on invested capital*3 
(ROIC)
1.0%
0.9%
2.6%
2.9%
4.1%
5.0%
2.4%
1.6%
5.9%
EBITDA*4
186,570
185,905
228,381
195,767
249,880
259,425
231,857
208,459 
 383,226
Earnings per share*5 (yen)
68.65
67.90
184.85
204.25
300.65
397.58
199.95
147.24
557.10
Cash dividends per share*5 
(yen)
90.00
90.00
90.00
90.00
105.00
115.00
120.00
120.00 
210.00
Consolidated divided 
payment ratio
128.8%
130.7%
48.5%
43.9%
34.8%
28.8%
59.7%
81.2%
37.6%
94

Financial Data
(Millions of yen)
2013
2014
2015
2016
2017
2018
2019
2020
2021
Asset and Efficiency Indicators
Total assets
¥2,120,629
¥2,077,338
¥1,991,262
¥1,981,451
¥2,228,560
¥2,235,776
¥2,335,415
¥2,534,458 
¥2,666,031
Property, plant and equipment
1,059,946
1,066,193
982,296
937,869
1,060,601
1,108,934
1,177,691
1,246,885 
1,323,868
Inventories
236,611
239,497
235,374
227,284
261,708
277,014
291,224
274,835 
330,101
Trade receivables
260,901
262,091
241,294
241,476
260,497
260,111
264,102
266,177 
295,161
Total asset turnover*6 (times)
0.65
0.64
0.65
0.65
0.70
0.68
0.66
0.58
0.65
Fixed asset turnover*7 (times)
1.31
1.27
1.29
1.34
1.46
1.40
1.33
1.16
1.32
Inventory turnover*8 (months)
2.7
2.8
2.9
3.0
2.8
2.9
3.1
3.2
3.1
Receivables turnover*9 (months)
2.3
2.3
2.3
2.3
2.1
2.1
2.1
2.3
2.0
Indicators of Stability
Shareholders’ equity*10
¥1,087,216
¥1,113,126
¥1,094,172
¥1,095,438
¥1,184,034
¥1,137,204
¥1,157,097
¥1,115,142 
¥1,314,161
Shareholders’ equity ratio
51.3%
53.6%
54.9%
55.3%
53.1%
50.9%
49.5%
44.0% 
49.3%
Debt-to-equity ratio*11 (times)
0.50
0.42
0.40
0.37
0.38
0.43
0.47
0.63 
0.41
*1	 Return on equity = Profit for the year attributable to owners of the parent / Equity attributable to owners of the parent
*2	 Return on assets = Operating profit / Total assets
*3	 Return on invested capital = Profit for the year attributable to owners of the parent / Average invested capital* * Invested capital = Total equity + Interest-bearing debt
*4	 Earnings before interest, tax, depreciation, and amortization (EBITDA) = Profit before taxes + Depreciation + Interest expenses
*5	 The Company consolidated its common shares at a ratio of 5 shares to 1 share on July 1, 2017. Accordingly, per-share data is calculated on the assumption that the consolidation 
of shares was conducted at the beginning of 2007.
*6	 Total asset turnover = Net sales / Total assets
*7	 Tangible fixed asset turnover = Net sales / Tangible fixed assets (Property, plant and equipment)
*8	 Inventory turnover = Inventories / (Cost of sales / 12)
*9	 Receivables turnover = Trade notes and accounts receivable (Trade receivables) / (Net sales / 12)
*10	 Shareholders’ equity = Net assets – Treasury shares – Minority interests
*11	 Debt-to-equity ratio = Interest-bearing debt / Net assets (equity)
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The major socially responsible investment (SRI)- and environmental, social, and governance (ESG)-related indices for which the AGC Group has been selected, 
as well as the main external recognition of the Group’s ESG activities, are as follows.
External Evaluations
 Inclusion in SRI and 
ESG Investment Indices
 External Recognition of AGC’s ESG Activities
AGC has been selected for the FTSE4Good Index 
Series, an SRI index created by FTSE Russell (head-
quartered in the United Kingdom), for the FTSE 
Blossom Japan Index, an integrated ESG index 
that acknowledges the excellent performance of 
Japanese companies in ESG activities, also created 
by FTSE Russell; and for the newly created FTSE 
Blossom Japan Sector Relative Index.*
* The FTSE Blossom Japan Sector Relative Index was 
designed to measure the performance of Japanese 
companies with excellent track records in ESG activities 
relative to their sectors. For companies that emit large 
amounts of greenhouse gases, in order to facilitate the 
transition to a low-carbon economy, the index uses 
Transition Pathway Initiative management quality scores 
to screen for such companies that are undertaking 
initiatives to reduce their emissions. 
The Climate Disclosure Project, which scores the 
environmental initiatives of companies and local 
governments and discloses this information to 
investors, gave AGC a Climate Change 2021 rating 
of A–.
In sustainability assessments by EcoVadis (headquartered in France), AGC’s Kashima 
Plant has received the Gold rating, which is awarded to companies in the top 5% in 
the overall assessment, every year since 2017, and the plant received the Platinum 
rating, awarded to companies in the top 1%, in 2020 and 2021. AGC’s Chiba Plant 
and Group companies AGC Si-Tech Co., Ltd., AGC Pharma Chemicals Europe, 
S.L.U., AGC Biologics’ Copenhagen facilities, and Vinythai Public Company Limited 
all received high scores.
AGC was recognized as a “White 500” 
company for the third consecutive year 
under the 2022 Certified Health & 
Productivity Management Outstanding 
Organizations Recognition Program, 
organized by the Ministry of Economy, 
Trade and Industry (METI) and Nippon 
Kenko Kaigi, in recognition of its efforts 
to strategically implement health man-
agement for employees. In addition, 
AGC Display Glass Yonezawa Co., Ltd., 
was recognized under the same program 
for a second straight year in 2022.
AGC was one of 33 companies 
selected by METI and the Tokyo Stock 
Exchange as a Digital Transformation 
(DX) Stock 2022, which recognizes 
companies’ achievement of outstand-
ing utilization of digital technologies 
and establishment of internal systems 
for the promotion of DX that helps 
enhance corporate value.
AGC was awarded an overall 
QualityScore of 1, the highest possible 
rating, with scores of (2)* for Board of 
Directors’ composition, (2) for share-
holder rights, (1) for executive compen-
sation, and (1) for auditing and risk 
management in the 2022 governance 
assessment conducted by Institutional 
Shareholder Services (ISS), an advisory 
company for exercising voting rights.
* Figures in parentheses are scores ranging 
from 1 to 10, with lower scores indicating 
lower governance risk. 
AGC received four stars in the Fifth 
Nikkei Smart Work Management 
Survey, organized by Nikkei Inc. to 
highlight advanced companies aiming 
to drastically improve productivity 
through workstyle reforms.
In 2022, AGC was selected for the 
seventh time and the fifth consecutive 
year among the Clarivate Top 100 Global 
Innovators 2022, as determined by 
Clarivate plc (headquartered in the 
United Kingdom). This global informa-
tion services company analyzes intel-
lectual property trends based on its own 
patent data to select the 100 most 
innovative companies and research 
institutions in the world.
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The Asahi Glass Foundation
Creating a Truly Rich Society by
Supporting Trailblazing Research and Fostering Talent
In 1933, the AGC Group established the Asahi Glass Foundation to support research in 
the field of applied chemistry, where AGC first began. Since then, the foundation has 
extended the scope of its support with the aim of enriching society at large. Today, the 
organization’s activities encompass contributions to the next generation through scholar-
ships and grants for leading-edge research as well as the commendation of individuals 
and groups that have helped greatly in addressing global environmental problems.
	
The expansion of the foundation’s activities reflects an ongoing effort to meet soci-
ety’s expectations through generations. Honoring individuals and groups in Japan and 
overseas that are engaged in tackling global environmental problems, the Blue Planet 
Prize was founded in 1992, coinciding with the holding of the Earth Summit. The Prize is 
presented annually to individuals or groups in recognition of outstanding achievements. 
Furthermore, the provision of scholarships (launched domestically for Japanese students 
in 1958) was broadened in 1990 to include international students studying in Japan. 
Through this scholarship program, we are fostering individuals who will play key roles in 
the creation of a sustainable society and civilization.
	
Going forward, the Asahi Glass Foundation will keep abreast of each generation’s 
needs and continue sponsoring the betterment of society.
The inspiration for the name “Blue Planet Prize” came 
from the words of the first person to view the Earth from 
space, cosmonaut Yuri Gagarin, who simply said: “The Earth 
is blue.” The name also expresses our hope that the Earth 
will forever remain an invaluable asset shared by humanity.
Dr. Syukuro Manabe Receives the Nobel Prize 
in Physics
In 2021, one of the winners of the first Blue Planet Prize, Dr. 
Syukuro Manabe, was awarded the Nobel Prize in Physics in 
recognition of his pioneering research on climate models and 
other aspects of global warming.
The first Blue Planet Prize award ceremony
Commendation Program
• Conducting the Questionnaire on Environmental Problems and the Survival of Humankind as 
well as reporting the time on the Environmental Doomsday Clock
• Conducting Survey on the Sense of  
Environmental Crisis among Japanese People
• Presentation of the Blue Planet Prize, 
an international environmental award
Research Grant Program
• Research grants for universities in Japan, Thailand, Indonesia, and Vietnam
	 Provision of 
approx. ¥11.4 billion
	 covering 5,570 grants
Scholarship Program
• Scholarships for Japanese and international students studying at graduate schools in Japan
	 Provision of 
approx. ¥3.4 billion
	 covering 4,315 scholarships
Seeking to build the foundations 
for the next-generation’s society
97
Contributing towards the resolution of 
global environmental problems
Fostering future leaders  
throughout society

Corporate and Stock Information
(As of December 31, 2021)
Corporate Information
Head office	
1-5-1, Marunouchi, Chiyoda-ku, Tokyo 100-8405, Japan
Company name	
AGC Inc.
English company name	
AGC Inc.
Founded	
September 8, 1907
Incorporated	
June 1, 1950
Representative	
Yoshinori Hirai, Representative Director, President & CEO
Capital	
¥90,873 million
Number of consolidated
subsidiaries	
206 (including 169 overseas)
Stock Information
Stock listing	
Tokyo Stock Exchange
Industry	
Glass and ceramic products
Securities code	
5201
Trading unit	
100
Fiscal year	
January 1 to December 31
Ordinary General Meeting
of Shareholders	
March
Stock authorized	
400,000,000 shares
Stock issued	
227,441,381 shares
Total number
of shareholders	
69,586
Major Shareholders
Number of shares held
(Thousand shares)
Shareholding ratio 
(%)
The Master Trust Bank of Japan, Ltd. (Trust Account)
32,811
14.79
Custody Bank of Japan, Ltd. (Trust Account)
15,987
7.20
Meiji Yasuda Life Insurance Company 
(Standing Proxy: Custody Bank of Japan, Ltd.)
8,654
3.90
The Asahi Glass Foundation
6,141
2.77
Barclays Securities Japan Limited
6,064
2.73
Asahi Glass Business Partner Shareholding Association
4,446
2.00
Japan Securities Finance Co., Ltd.
3,926
1.77
Mitsubishi Estate Co., Ltd.
3,703
1.67
Nippon Life Insurance Company 
(Standing Proxy: The Master Trust Bank of Japan, Ltd.)
3,662
1.65
SMBC Nikko Securities, Inc.
3,594
1.62
Notes	1. In addition to the above, AGC Inc. holds treasury stock of 5,517,627 shares.
	
2. The shareholding ratio is calculated excluding treasury stock.
Stock Information
Breakdown 
of number of shares 
by shareholder 
(one trading 
unit or above)
■ Financial institutions
36.7%
■ Financial instruments business operators
7.5%
■ Other corporations
9.2%
■ Foreign corporations, etc.
26.1%
■ Individuals and others*
20.5%
* Including treasury stock, which accounts for 2.6%
98