About ISK

Value Creation Strategies

Foundation for Value Creation

Corporate Data

President&We’re always aware of the purpose of our existence.
So when we hit a wall,
we automatically know which way to go.

PurposeTo continue contributing tobetter living environments
through chemical technologies
01About ISK

Value Creation Strategies

Foundation for Value Creation

Corporate Data

Behind Our Purpose

Inheriting the Challenging Spirit and Providing the Indispensable
Vision 2030 and Sustainability Management
We, the ISK Group, have changed the direction to sustainability management with our long-term vision, Vision 2030.

“To continue contributing to better living environments
through chemical technologies”

The world today is facing major issues such as extreme weather events and other effects of climate change, and food problems.

This purpose is the reason our group exists, which inherited Ishihara's challenging spirit.

The United Nations has established the Sustainable Development Goals (SDGs) as a set of goals to resolve these issues. As aWe provide society with the essentials for everyday life.

member of the global community, we support and participate in this initiative in an effort to contribute to the realization of a

Agrochemicals contribute to feeding the world’s population, which will continue to grow. Titanium dioxide is indispensable

prosperous future society through our business.

for a rich, colorful life. Barium titanate is indispensable in capacitors, which is used in computers, smartphones, self-driving

Therefore, we set our purpose, in order to redefine the reason why we exist.

automobiles, and electric vehicles, and it will be used more wide field in the future.
Our strength lies in our unique chemical technology and technological development capabilities. We have outstanding, one-of-

Our Founders Aims and Purpose

a-kind technologies. Our path forward involves utilizing these strengths to provide the value and products society requires, or to

ISK Group’s founder, Hiroichiro Ishihara, started many businesses with a desire to contribute to Japan and society. Despite thecreate new ones if necessary.

impact of wars and politics along the way, he was dauntless in his continued search for new paths and laid the foundations of ourOur raison d'être is to use chemical technology to solve global problems and realize a better living environment.

current inorganic chemicals and organic chemicals businesses.

We base all our business activities on this purpose.

Vision 2030

Corporate Philosophy

Originality. Acceleration. Global Reach.
Transforming Lives Through the Power of Chemistry.

StageⅠ
FY2021-2023

Stage ⅡMateriality
forthe ISK GroupFY2024-2026

Stage ⅢFY2027-2029

BasicPhilosophy• Contribute to social development,
protection of life and environmental preservation• Respect shareholders, customers, suppliers,
local communities and employees• Abide by laws and regulations; maintain transparency
in business activities

Code ofConduct• At Ishihara Group, we will strictly observe laws,regulations, social norms and Company rules,
while steadfastly adhering to high ethical standards,
so as to gain social trust in our business.
• In manufacturing activities, we will place the utmost
priority on global environmental protection, as well as
on worker safety, and will work to prevent any
workplace accident or disaster.
• On the basis of respect for human rights,
we will promote mutual understanding and cooperation
among employees,
in order to create an open and friendly workplace.
• To maintain transparency in our business activities,
we will promote communication with local communities
and society, and will disclose corporate information
in a timely and appropriate manner.

PurposeTo continue contributing tobetter living environments
through chemical technologies.

02Contents

About ISK

Value Creation Strategies

Foundation for Value Creation

Corporate Data

About ISK

0 1 Introduction
03 Contents
04 2022 Business in Brief

Message from the President

07
111213Message from the President
Vision 2030
Progress in Vision 2030 Stage I
Message from the Director of Finance & Accounting Headquarters
Special Feature Commitment to Manufacturing
15 Yokkaichi Plant
18 Agrochemicals Business
20 Value Creation Process
2 1 Input and Output
23 Financial and Non-Financial Highlights
25 Materiality
Overview by Business27 Inorganic Chemicals Business
29 Organic Chemicals Business (Agrochemicals)
3 1 Organic Chemicals Business (Healthcare)

32
34
36
38
43
45

Stakeholder Engagement
Board of Directors and Executive Officers
Interview with Newly Appointed Outside Officer
Corporate GovernanceRisk Management
Compliance
Special Feature Compliance
47 Responsible Care Activities
48 Environment
53 Social
62 Initiatives to Spread ISK Group’s Purpose

6365
6970
71
72

Financial and Non-Financial Summaries
Consolidated Financial Statements
History of ISK
Company Profile / Group Bases
Stock Information
Editorial Policy

About ISK

Value Creation Strategies

Foundation for Value Creation

Value Creation Strategies

Foundation for Value Creation

Corporate Data

Corporate Data

Thinking about the Modelfor Future Business
While revenue from our organic chemicals business is steadily increasing, our inorganic chemicals
business is struggling due to factors such as rising raw material and fuel costs, indicating that the time
has come to reconsider the model for our business. However, despite these challenges, we remain acompany possessed of real ability and strength. “Purpose” will be the guiding compass in determining
our future direction, and we will leverage our technological strength, which is our greatest strength, tocontinue providing the world with products which improve people’s lives.
Executive Director and President

Hideo Takahashi

07

Message from the President

Thinking about the Model for Future Business
While revenue from our organic chemicals business is steadily increasing, our inorganic chemicals business is struggling due to factors such as rising raw material and fuel costs,
indicating that the time has come to reconsider the model for our business. However, despite these challenges, we remain a company possessed of real ability and strength. “Purpose”
will be the guiding compass in determining our future direction, and we will leverage our technological strength, which is our greatest strength, to continue providing the world withproducts which improve people’s lives.

Special FeatureSpecial Feature

Commitment to Manufacturing

Commitment to Manufacturing

About ISK

Value Creation Strategies

Foundation for Value Creation

Special Feature

Corporate Data

Yokkaichi Plant

Commitment to Manufacturing

About ISK

Value Creation Strategies

Foundation for Value Creation

Corporate Data

Agrochemicals Business

A Manufacturer’s Responsibility
To Make Exactly What the Market Needs

Manufacturing Centered on Overseas Subcontractors
ISK will establish an Organic Production Technology Research Institute (provisional name; hereafter, “Ono Research Institute”) in Ono City, Hyogo
Prefecture. The aim is to achieve, via advancements in manufacturing technology, the world's lowest cost manufacturing and stable supply. We

The Yokkaichi Plant is the flagship production base of our inorganic chemicals business. It has been thespoke with three Biosciences Business Headquarters members who are part of the team working to establish the Ono Research Institute about thefoundation of ISK manufacturing for a great many years going all the way back to its establishment inaims and future vision for it.

1941. What is the plant currently committed to, what is it working on? We put these questions to Yoshiyuki
Shinmyo, who, as Director of the Yokkaichi Plant, is the person responsible for its overall operation.

What is the Ono Research Institute?

A Production Technology Research Facility Equipped with Small-scale
Production Equipment

Yokkaichi Plant’s Commitment

Realizing Stable Supply and Stable Operation

Ueda The focus of the Ono Research Institute will be on scaling up new products, such as agrochemicals developed at theCentral Research Institute (in Kusatsu, Shiga Prefecture), and on improving the manufacturing process for existing products in—In terms of manufacturing, what is it that the Yokkaichi Plant is committed to?

order to reduce costs. In manufacturing, various conditions change depending on the scale of manufacturing, and this affects theA stable supply. Our top priority is to stably provide users what they need, when they need it, and of the quality they need. To do this, it isrelative ease and cost of production. A chemical reaction which is easy to achieve in a laboratory may not be able to be scaled

important that you emphasize a smooth, speedy flow of operations, like a baton pass in track and field, from acquiring information about

up as straightforwardly as you anticipated. Around 2006, we began outsourcing manufacturing overseas, and it was after we‘needs and seeds’ to product development and production. I believe that an outstanding plant is a plant that can do this.

had already completed some degree of investigation into how to scale up production that we brought the basic production data

Naturally, I am talking about plants that work to prevent workplace accidents, disasters and other occupational hazards. Without this, weto the Subcontractors production site. Currently, because we do not have our own process verification facility, we are not able tocannot say we are providing a stable supply. With the exception of an annual maintenance shutdown, the Yokkaichi Plant operates aroundperform simulations in Japan and have run into situations where problems at the Subcontractors site forced manufacturing to be

the clock every day, including the New Year and summer Obon holidays. Plant shutdowns lead directly to increased costs. Our ability tohalted and where we were forced to borrow a Subcontractors small-scale production facilities to perform tests on short notice.

keep production going is where we shine.
Last year, when the COVID-19 pandemic was spreading at one of our workplaces, we faced the threat of a complete production

Nakamura When scaling up the manufacturing process, we start at the scale of a normal laboratory, move to the “kilo-stoppage, but we were able to keep the production line running by reducing the production facility utilization rate by half and entrustinglaboratory scale,” which is tens of liters, then to “bench scale,” which is hundreds of liters, and then to “pilot scale,” which iseach operator to contribute through his or her own roles and knowledge. I’m proud of this major accomplishment that, thanks to thethousands of liters, closer to full plant scale. These are the stages commonly used to verify the safety, consistency and cost-cooperative efforts of everyone, we were able to ensure a stable supply even during the COVID-19 pandemic.

efficiency of the developed manufacturing process.
At the Ono Research Institute, we plan to construct two buildings. The first is the Technology Research Building, which will have

—What are the concerns facing manufacturing currently?

regular laboratory and kilo-laboratory scale equipment, and the second is the Synthesis Research Building, which will have

The titanium ore which the Yokkaichi Plant uses as the main raw ingredient in producing white pigment titanium dioxide is be-equipment for performing verification of the upscaling process.

coming harder to obtain due to decreasing titanium content at the ore extraction source, as well as due to overseas factors, such
Director of Yokkaichi Plant

Yoshiyuki Shinmyo

as conflict. The ore is not found in Japan and must be procured entirely from overseas. Furthermore, there is tight demand forthe ships that carry the ore, resulting in delays; there was a three-month delay between March and May of last year, forcing us

One of the aims for the Ono Research Institute is to use its aggregated testing data to facilitate a smooth establishment of newBiosciences Business Headquarters
Production Technology Division
Engineering Group Leader

Biosciences Business Headquarters
Deputy Supply Chain Division
General Manager

Biosciences Business Headquarters
Deputy Production Technology Division
General Manager

product manufacturing system at commercial production facilities. Also, for existing products, this facility will be used to help

Hiroaki Tomita

Takafumi Ueda

Tadashi Nakamura

with cost reduction through the development of new manufacturing processes and the acceleration of technology transfer toto make temporary production adjustments.

contractors.

When this happens, we have no choice but to consider various ores that are more easily obtainable. These raw materials are1518Yokkaichi Plant

Agrochemicals Business

A Manufacturer’s Responsibility To Make Exactly What the Market Needs

Manufacturing Centered on Overseas Subcontractors

The Yokkaichi Plant is the flagship production base of our inorganic chemicals

ISK will establish an Organic Production Technology Research Institute (provisionalbusiness. It has been the foundation of ISK manufacturing for a great many years going

name; hereafter, “Ono Research Institute”) in Ono City, Hyogo Prefecture. The aim is to

all the way back to its establishment in 1941. What is the plant currently committed to,achieve, via advancements in manufacturing technology, the world's lowest costwhat is it working on? We put these questions to Yoshiyuki Shinmyo, who, as Director

manufacturing and stable supply. We spoke with three Biosciences Businessof the Yokkaichi Plant, is the person responsible for its overall operation.

Headquarters members who are part of the team working to establish the Ono
Research Institute about the aims and future vision for it.

03

2022 Business in Brief

About ISKISK is a chemical company. Based on our corporate purpose, “To continue contributing to better living environments throughmaterials using titanium dioxide, and agrochemicals and animal health products made with organic compounds.

Comfortable Living Environment

Innovative Lifestyle Products

Corporate Data

Chemicals Businesschemical technologies” we provide the world comfort, convenience, and health through products such as paints and functional

More convenie

Foundation for Value Creation

Inorganic

ISK Group: Making Each Day Better

More comfort

Value Creation Strategies

nce

Environmentally Friendly Products

More friendlin

In fields such as housing and automotive, high-quality titanium dioxide paint suitable

We’re also making lives more convenient by supporting advances in IT throughOur totally new heat-storage material, HASClayTM, stores heat when dry andfor a range of applications is responding to increasingly advanced needs. ISK isour products such as highly pure titanium dioxide used as material for thingsemits heat when wet. When used for dehumidifying, heating, or drying processes

making people’s homes more comfortable through high-value-added products such

like condensers, super black material that absorbs more than 99% of light, andin places like factories, it can dramatically reduce CO 2 emissions compared toas heat shield materials that reflect near-infrared rays, and photocatalyst material

highly refractive material that realizes a high light refractive index and highobtaining heat by burning fuel.

with a self-cleaning function.

transparency.

ess

Incorporating HASClayTM to reuse unused low-temperature waste heat

Plant waste heat, etc.
TIPAQUE™ titanium dioxide

Used as a raw material for paint in numerous fields

Highly pure titanium dioxide

Supporting information society through use as electronic component materials

Waste heatDrying
Hot water supply
Dehumidifying
Air conditioning

Using heat04

2022 Business in Brief

About ISK

Value Creation Strategies

Foundation for Value Creation

Corporate Data

OrganicChemicals BusinessHealthierHappierEnsuring a stable supply of agricultural products

Improving quality of life (QOL)

ISK is a pioneer in chemical pesticides. We distribute a variety of agrochemical products in the domestic andWe make people’s lives happier and livelier through animal health products that protect their precious partners andinternational markets to make people’s lives healthier—protecting their health and lives through food.

through blue phalaenopsis that adds color to their daily life.

Our agrochemical lineup of mainly herbicides, fungicides, insecticides

Contributing to people’s dietary life around world

BRENDA™ (animal health product)Protecting the health ofyour precious animal companions

The world’s first blue phalaenopsis Blue Gene™

Special colors that never fade away05

2022 Business in Brief

About ISK

Value Creation Strategies

Foundation for Value Creation

Corporate Data

Key Figures Fiscal year ended March 31, 2023
Net Sales

131.2

8.6billion yen

Capital Adequacy Ratio

48.3%

EuropeAsia

Net Sales 19.4 billion yen

Net Sales 26.5 billion yen

Sales Composition
Ratio

15 %

Sales Composition
Ratio

20%

Number of Group Bases 2

Number of Group Bases 8ProductsProducts• Major countries and regions in each category
Asia
China, Taiwan, South Korea, Thailand, Indonesia, Singapore, India
Americas U.S., Canada, Brazil, Argentina, Mexico
EuropeGermany, Netherlands, France, U.K., Belgium, Italy, Eastern Europe, Middle EastOthers
Australia, New Zealand, Africa• Pictograms representing major products(The product with the highest sales in each region is shown in a larger size.)

Operating Margin

Operating Income

6.6billion yen

R&D Expenses

9.1%

ROE

7.3%

Number of ISK Group Employees

1,768billion yen

JapanAmericas

Net Sales 50.3 billion yen

Net Sales 28.4 billion yen

Sales Composition
Ratio

Sales Composition
Ratio

43 %

22%

Number of Group Bases 8

Number of Group Bases 10

Products

ProductsOthers
Net Sales 400 million yen
Products

Titanium
dioxideFunctional Agrochemicals Animal healthBluematerials
products phalaenopsis

06