C.I. TAKIRON Group

Integrated Report 2022

Group Corporate Philosophy
MissionCreating a people- and earth-friendly future
That is to say, we will carry on fulfilling our responsibility and role in people’s lives and the global
environment. And to do so, we will tap into the various business resources we have built over the years.
Since our founding in 1919, the C.I. Takiron Group has been supporting people’s daily lives andcreating a better tomorrow, and we will continue to be a corporate group that provides peace ofmind and comfort for the future.

Aspired Corporate Culture

Pride in our accumulated value and the courage to transform
These are things that are important for us to have in order to achieve our Mission.
While remaining proud of the fact that we have refined our technology and built up trust over the
past 100 years, we will continue to nurture a corporate culture that never settles for the status quo,
is willing to transform, and always has the courage to boldly take on new challenges.

Sustainability VisionCorporate Message

Supporting today, changing tomorrow
The C.I. TAKIRON Group supports the lives of people today and always works to build a better future
for people and the environment with the courage to change toward more prosperous, comfortable
lifestyles of tomorrow.

1

C.I. TAKIRON Group Integrated Report 2022

Editorial Policy
C.I. TAKIRON Group regards the Integrated Report as animportant communication tool.
We issue this report to help stakeholders understand ourefforts to enhance our corporate value over the medium
to long term, and to further deepen dialogue and enhance
the sustainability of our company. In preparing the Integrated Report 2022, we made a deliberate effort tocommunicate our value creation story from both financial
and non-financial perspectives in an easy-to-understandmanner. We edited the report with a focus on our Medium-term Management Plan “Commit to Transformation
2023 (CX2023)” and sustainability management.
[Cover Design]
The gradient vector that runs from the front cover tothe back cover and continues throughout the paper
expresses the Group’s orientation toward continualchange with diversity in order to achieve our mission to“Creating a people- and earth-friendly future”.
Reporting Period
FY2021 (April 1, 2021 to March 31, 2022)

Contents
Corporate Philosophy Table of Contents ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・01
Taking on the Challenge of Social Issues ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・03
Financial/Non-financial Highlights ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・05

Sustainability Management
Top Message ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・07
Creating Value through Sustainability Management ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・13
Sustainability Management at C.I. TAKIRON Group ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・15

FY2021-FY2023 Medium-term Management Plan

Commit to Transformation CX2023

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Medium-term Management Plan: Quantitative Targets
and Results ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・18
Progress on Medium-term Management Plan:
Priority Measures ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・19

Business Overview

A Driving Force for Change

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Construction Materials Business ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・23
Environmental Materials Business ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・25
High Functional Materials Business ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・27* This report includes some information outside of this reporting period.

Specialty Films Business ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・29

Reporting Organizations
C.I. TAKIRON Corporation and its Group Companies

R&D Division ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・31

Publication Date
December, 2022
Main Reference Guidelines● Ministry of Economy, Trade and Industry“Guidance for Collaborative Value Creation”● Ministry of the Environment“Environmental Reporting Guidelines”● International Integrated Reporting Council (IIRC)“International Integrated Reporting Framework”● SDG Compass● GRI (Global Reporting Initiative)“Sustainability Reporting Standards”
Introduction of Communication Tools
We cover basic information about C.I. TAKIRON Group on thecompany homepage while comprehensive management information is published in the annual report.
Corporate Information
https:// www.takiron-ci.co.jp/corporate/

Toward Sustainability Management

A Foundation for Transformation

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Materiality ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・36
Process to Define Materiality ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・36
Medium-term Plan for Materiality ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・37

Environment
Taking on the Challenge of Carbon Neutrality ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・39

SocialHuman Resource Strategies ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・43
Management Commitment on Enriching Lives ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・45
Investing in Human Capital ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・45

Governance
Enhance Corporate Governance ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・47
Compliance Risk Management ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・51
Directors, Audit & Supervisory Board Members,
and Executive Officers ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・53
Special Feature: Governance Roundtable ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・55

Annual Report (IR Information):
https:// www.takiron-ci.co.jp/ir/

Stakeholder
Engagement with Stakeholders ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・61

Inquiries regarding this report:
Sustainability Strategy Department
Corporate Communication Group
Tel: +81-3-6711-3718

Main Financial/Non-financial Data (Quinquennial Data) ・・・・・・・・・・・・・・・・・・・・・・67
Corporate Profile and Stock Information ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・69
Business Sites ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・70

C.I. TAKIRON Group Integrated Report 2022

2

Taking on the Challenge of Social Issues
1959

1971

Takiron Chemical Co., Ltd. changes
its corporate name to Takiron Co., Ltd.

Hama Kasei Co., Ltd. and Kobe Resin Co. Ltd.
merge to form C.I. Kasei Co., Ltd.

1961
1935

Hama Kasei Co., Ltd. established.

1965

Takigawa Celluloid
Plant founded.

1

Takiron Chemical Co., Ltd. listed on theFirst Section of the Tokyo Stock Exchange
and changes its name to Takiron Co., Ltd.

1963

Takigawa Celluloid Plant
incorporates under the nameTakigawa Celluloid Co., Ltd.

1919

1973

Takiron Chemical Co., Ltd. is listedon the Second Section of the
Osaka Securities Exchange.

Kobe Resin Co.,
Ltd. founded.

2

1930

1960

3

1970

1955

1978

1980

4
1982

History of Challenge
Our company has confronted a variety of challenges without fear to resolve social issues and address customer needs
since its founding in 1919 by clearly understanding the changes in each generation.
Recycling1

Launch of Remanufactured
Celluloid

Remanufactured celluloid is
made by making recycled celluloid sheets from the waste celluloid produced when processing
new celluloid sheets (average of
20% of waste celluloid is generated). Orders from processors
boomed for these recycled celluloid sheets after the recycled
product was praised for having
almost the same high-quality as
new celluloid sheets.

Shift toward Materials that Meet
Market Needs

2

Launch of Rigid Vinyl
Chloride Sheet Sales

Our research into vinyl chloride
resin as flame-retardant materials
began in 1948 to overcome theshortcomings of celluloids. TAKIRON Plate started sales in 1955
as a rigid vinyl chloride sheet. We
began to manufacture rain gutters in 1957, rigid vinyl chloride
corrugated sheet with extrusion
processing in 1958, and polycarbonate plate in 1961. We alsotransitioned metal products (galvanized iron sheet/tin rain gutters) to light plastics which does
not rust.

Drip, Dust, and Mist Prevention

3

Launch of Sky 8

Mist inside of greenhouses causes diseases in crops. We set out
to prevent fog and mist in greenhouses from around 1976 in lightof feedback from farmers about
mist forcing them to wear rain
gear during work and other suchconcerns. After three years of
testing, our research discovered
a way to mitigate mist by applying a special silicone to change
the disposition of wet film surfaces. This led to the acquisitionof a patent and the start of Sky 8
sales in 1978.

Water-sealing/Waterproofing Panels andShields

4

Hydrophilic Water Sealing
Material Launch of Vynon Aqua
ATR (Current Vynon Hydrotite)

A specialized production method
succeeded in blending and molding composite and water-absorbing resins. These panels andshields swell in water to obstruct
the penetration of ground water.
It is used as a segment sealant inunderground tunnels and as a
joint sealant in concrete, and iscurrently being used in subway
construction throughout Asia.

Trans-Tokyo Bay Highway Umihotaru
Undersea Tunnel

Celluloid Sheet

Product Prototype and Research Group

Without mist prevention

Vynon Hydrotite
With mist prevention (Sky 8)

3

C.I. TAKIRON Group Integrated Report 2022

(Billion Yen)
160

2017

140

Takiron Co., Ltd. and C.I. Kasei Co., Ltd.
merge and change the corporate nameto C.I. TAKIRON Corporation.

Former Takiron
Former C.I. Kasei
C.I. TAKIRON*Net Sales 1935 to 1986: Non-consolidated; 1987 to 2021: Consolidated

120

100

80

60

40

20

8
1990

5
1995

Safe Even Under Outdoor Rainy Condition

5

PVC Stair Treads with
Sound Absorption andSlip Resistant Function

Inspired by customers’ potential
requests for more safe steppingon slippery steel/metal staircases, TAKISTEP – sound absorption
and slip resistant PVC stair tread
was developed and launched
in 1995. Indeed that happened
often for a first-ever product,
TAKISTEP also led problems/complaints in the initial phase,
however, we have tenaciously
addressed solutions for problems. These efforts improved
TAKISTEP as a stable and safe
product, and create the uniqueinstallation procedure. We also
have continued to revamp quality of materials, product design,and procedure of nosing form bytrial productions over and over.
After all these trials and errors,
the unique features of TAKISTEP
are recognized widely in indoor
and outdoor flooring sector.

6 2000

7

1999

2007

Contributions to Fire Safety

6

2020

2010

Launch of Flameretardant Plastic Sales

We developed and started salesof the FM Plate product, which
conformed to the FM4910*
flame-retardant property standard enacted after a large-scale
fire at an overseas semiconductor plant. FM Plate forms a carbon layer that acts as an oxygenshield against a fire heat source.
This enhances safety against fireby preventing the spread of fireand smoke.

Lightweight and Highly Rigid with HighHeat Insulation

7

Launch of Lume Carbo
Large Polycarbonate Plastic
Double-layer Panel

The Lume series provides a lineup
of products to drive energy savings by letting plenty of naturallight into buildings while dramatically reducing the heat lost from
openings. Applications include
Lume Wall and Lume Roof.

9

0

2021

Expand environment-friendly products

9

Launch of Cellulose
Compound, a Paper
Molding Material

We have begun development
and sales of a cellulose compound recognized as a paper in
the Containers and Packaging
Recycling Law. It also has highstrength and heat resistance,and contributes to the reductionof CO2 emissions by reducing theuse of petroleum-derived resins.

* The FM4910 is a flame-retardant standard
for materials used in semiconductor plants
and other clean rooms established by the
FM Global insurance company in the UnitedStates to prevent fires.
Test Starts

Lume Wall
Anti-bacteria/Anti-virus

8
After 35 Seconds

Release of Belbien (Fireproof

Decorative Adhesive Film) and

Neo Clean (Flooring Material)
Antibacterial/Anti-virus Materials

These products have an antibacterial activity value of 2.0 or higher and reduce at least 99% ofviruses. This inhibits the growthof bacteria and viruses which inturn contributes to maintaining
more hygienic environments.

Cellulose Zipper

Carbonization After 5 Minutes

TAKISTEPFM Plate Burning Test

Walls: Belbien Flooring: Neo Clean

C.I. TAKIRON Group Integrated Report 2022

4

Financial/Non-financial Highlights
Net Sales

Financial

FY2020134,470

FY2021¥141,936
millionPoint

In addition to recovery from the impact of COVID-19,
net sales revenue increased due to a surge in demand anticipating product price hikes caused bysoaring raw material and distribution costs, andhigher unit sales prices after the price hikes.

￥￥

Current Net Income Attributable to
the Owners of Parent

Ordinary Profit
FY2020

8,807
Point

FY2021¥9,084FY2020

million

Despite the impact of soaring raw material and logistics
costs, ordinary profit increased 3.1% from the previous
fiscal year, driven by demand for products for semiconductor manufacturing equipment, and by a surge indemand anticipating product price hikes.

5,332

Point

FY2021¥6,660

millionIn addition to an increase in ordinary profit, improvement of extraordinary gains and losses, and a one-time
gain from the transfer of loss carried forward from theliquidation of a subsidiary resulted in a 24.9% increase
in income over the previous year.

￥

Current Net Income Per Share

Capital Investment

FY2021

FY2020

54.77

Point

5

¥68.47

Current net income per share increased by 13.7 yen
year-on-year due to an increase in net income attributable to owners of the parent company.

C.I. TAKIRON Group Integrated Report 2022

FY2021
FY2020

5,149

Point

¥4,145

millionWe continued to invest in improving major productproduction in each business segment.

Energy Consumption Rate

Non-financial

FY202012.6

FY202112.4

GJ/Manufacturing Ton

Point

Unit CO2 Emissions
FY20200.52

In addition to ongoing energy-saving activities throughout the group, the energy consumption rate decreased
due to the effect of improved yield resulting fromincreased production volume. (-1.3% compared to
FY2020)

Water Consumption

FY2021

0.50

FY2021981

FY20201,000

t-CO2/Manufacturing Ton

Point

Unit CO2 emissions decreased due to the use of renewable energy at some plants as well as improved yieldand energy-saving activities in line with increased production volume. (-3.9% compared to FY2020)

Thousand m3

Point

Ongoing conservation efforts at production sites haveresulted in reduced water consumption. (-1.9% compared to FY2020)

1

New Female Graduate Employment Ratio*

Rate of Paid Leave Taken by Employees*

FY2021

FY2020

30.8
Point

28.6

FY2021

FY202088.2%

We hired 14 new graduates (including four females)in contrast with our employment plan in which weplanned to hire 10-15 new graduates, and our female
employment ratio decreased compared to fiscal 2020.

Point

89.4

%

Our target for the rate of paid leave taken by employees was 80% or above, and we continued to strategically encouraged employees to take paid leave. (+1.2%
compared to FY2020)*Non-consolidated figure for C.I. TAKIRON

C.I. TAKIRON Group Integrated Report 2022

6

Sustainability
Management

Kazuya Saito
Representative Director President

Top Message

Our own long-term and sustainable growth istied to the sustainability of society at large.
Medium-term Management Plan Year 1, Behavioral Change
I would like to take a moment to touch on three points
about “Commit to Transformation 2023 (CX2023),” ourMedium-term Management Plan launched in April 2021.
Our Company got off to a strong start in the first quarter offiscal 2021, significantly exceeding our plan in terms of bothsales and profits, as a reaction to the sluggish demand causedby the COVID-19 pandemic in the previous fiscal year. However,our business was affected to no small extent by the resurgenceof COVID-19 infections and the gradual effects of significantly
higher raw material prices. In the latter half of the fiscal year,
the unstable international situation spurred a sharp rise in energy prices, which stalled the supply chains for various materials,
including chemical raw materials and nonferrous metals.
Despite facing a variety of challenges, the Company ultimately got off to a good start in terms of business performance,
achieving all of our quantitative targets, with an increase inboth sales and profit, thanks to a recovery in the number of
new housing starts, a rush of demand before product pricehikes, and brisk activity in the semiconductor industry.
On the qualitative front, we were also able to implement
measures that will serve as stepping stones to our next phase ofaction. These included streamlining our sales structure and reorganizing businesses through restructuring within the Group,
as well as organizational reforms including the establishmentof the Recycling Adaptive Materials Business Department, theDX Strategy Promotion Department, and the Sustainability
Strategy Department. Progress is also being made on our specified two sources of growth and two newly established support
systems, which are among our six priority action items. I believethat we have achieved adequate results for the first year of theMedium-term Management Plan. P.17
As we enter fiscal 2022, the second year of our Medium-term Management Plan, the current social and economic environment remains uncertain, and we are bracing ourselves for the need to carefully anticipate and address risks.
It has been a year since we launched the “CX2023” planunder the banner of “Transformation.” In the management
team, we have been reviewing the C.I. TAKIRON Group’s
organizational structure in order to achieve our long-term
vision for 2030, based on Sustainability Management, inwhich business is considered from a social perspective. At
the same time, I feel that the behavior of each and every

employee has changed over the past year. Symbolic of this is
the growing sense of participation.
For example, the Medium-term Management Plan and Materiality Management Committee, which started in fiscal 2021, isa task force organization directly under the President, chaired byme, with more than 20 subcommittees and working groups foreach theme within its scope of responsibility. The discussions arebeing held across the company by a diverse group of members
from various departments, and are producing concrete resultsin the form of new products and technologies, overseas expansion, and the development of environment-friendly products.
In addition, we have long been involved in various cleanup and volunteer activities. Although we were forced toscale back our activities due to the COVID-19 pandemic,
the WFP Walk the World 2022 charity events and Waterside
Clean Aid Activities held since the beginning of 2022 haveattracted several times the number of employees who had
previously participated in such events. P.64
We are seeing more vigorous action being taken than everbefore. I am very encouraged and inspired by the fact thatthe “Commit to Transformation,” the slogan of the Medium-term Management Plan, is inspiring us and leading tochanges in how we act. This positive change may be a reflection of the fact that employees are redefining their workas their role in society, rather than mere job duties, and areworking on updating their conventional thinking.
Last year, we reorganized the Group’s corporate philosophy, advocating “Aspired Corporate Culture: Pride in our
accumulated value and the courage to transform.” This
represents our desire to reestablish a corporate culture thatis not complacent amid the status quo, but is constantly
changing itself. This is the source of the energy needed totake on challenges, which the C.I. TAKIRON Group has accumulated over the past 100 years. We look at the many issues
facing society, think about what we can do to help solve
them without preconceived notions, work with our hands,
and listen again to the feedback from society. Through thiscontinuous cycle, we take pride in being a company thathelps solve social issues, having created our next productand new value through dialogue with our customers.
Today, under the overarching theme of realizing a sustainable society, the role that our Group should play is becoming
clearer.

C.I. TAKIRON Group Integrated Report 20228

Sustainability
Management

Learning from History, Determination to Pursue Sustainability
Amid calls for a carbon-neutral, recycling-oriented society
by 2050, customer needs are shifting toward products madefrom recycled materials. The time has finally come to fundamentally rethink the age of consumption, in which we produce goods cheaply in mass quantities, use them like water,and discard them when no longer needed. The majority of
the resin products that the Group handles are derived frompetroleum, and we cannot continue to rely on production
activities that use virgin raw materials forever.
Looking back 100 years, Takigawa Celluloid Plant, ouroriginal founding company, started as a celluloid remanufacturing business. Remanufactured celluloid is made fromthe scraps of celluloid sheets that are produced during theprocessing of celluloid sheets. The sheets thus completed
were highly regarded as being on a par with new ones, andare said to have led to the expansion of the Company’s business. It is a pleasant surprise and a matter of pride to me

that the philosophy of sustainability existed in our company’s early days. At the same time, this thinking remains alive
and well in our company to this day and has become thefoundation of our business activities.
The topic of recycling is far from simple, and can be quitedifficult. It takes a lot of boldness to deal with sourcing materials and improving compounds and molding techniques. I
intend for us to learn from past efforts to distill wisdom withwhich to confront these difficult situations.
Together with our employees, we have reaffirmed themission that the C.I. TAKIRON Group should fulfill withinsociety. There are many issues to be addressed, including thefeasibility of recycling as a business, the necessary financing,
and the placement and training of human resources, all ofwhich makes this topic a worthy challenge.

Resin Recycling and Upcycling to Create a System of Resource Circulation
The Medium-term Management Plan CX2023 specifies
six priority action items. In particular, “Solving social issues”
and “Acquire new businesses, products, and technologies”
provide the driving force toward realizing our future vision.
In fiscal 2021, we began developing technologies that willcontribute to reducing environmental impact and creating a
recycling-oriented society. Our new Recycling Adaptive Materials Promotion Department, is taking the lead in sowing
new seeds and preparing for commercialization.
This organizational unit begins by focusing on creating
mechanisms for plastic recycling. We are exploring the possibility of resource recycling by looking all the way fromupstream to downstream. This includes recycling methods
that convert “pre-industry” loss materials generated in ourown manufacturing processes into products we can divert
to use at other plants. It also includes collecting and reusing“pre-consumer” processing loss materials generated after
delivery to our customers but before they reach the handsof consumers.
Furthermore, we have begun full-scale development of
the most important process, upcycling (creative reuse) ofresins. That is, we have reconceptualized lost materials as
resources, and begun to develop technologies to transformthem into high-value-added resins through formulation de-

9

C.I. TAKIRON Group Integrated Report 2022

sign and alloying (modification), etc.
In March 2021, we invested in MAVERIQ Partners Inc., acompany with formulation design technology for resin compounds, to improve the quality of environmentally friendly
resins. In February 2022, we invested in Euglead Inc., whichplans to stably produce paramylon nanofiber (PNF), used asa reinforcement material for resin. While cellulose nanofiber(CNF) has been studied worldwide as a reinforcing material,
PNF, a nanofiber derived from euglena microorganisms, offers performance equal to or better than CNF, and a stableproduction system is expected to be established.
At this very moment, we are working together with ourGroup companies and partners as we make every effort tocommercialize environmentally friendly resins, but it willtake some more time before the development progresses
and profits are realized. The role we must fulfill as a processing manufacturer is to ensure stable quality and procurement, and to make sure that our products take root in
the market. We do not intend to pursue results too hastily
at this time, but rather to proceed steadily by first raising
the level of technology and products in all business fields ofconstruction materials, environmental materials, high-performance materials, and functional films, and by improving
the precision of our marketing.

Listening to Feedback from Our Stakeholders
We are also eager to address climate change and achievecarbon neutrality, which is one of the key issues in Sustainability Management.
Since the CO2 emission reduction results through fiscal
2021 were favorable and the KPI for CO2 emission reduction
in fiscal 2023 was achieved ahead of schedule, the carbon
neutrality target was revised in the first half of fiscal 2022.
In addition to our stated goal of becoming carbon neutral by
2050 (net-zero emissions), we have revised upward our existing fiscal 2030 interim target for greenhouse gas (GHG) emissions reduction to 35% of the fiscal 2018 level for Scope 1
and 2, and a supply chain-wide emissions reduction for Scope
3. While gradually switching to electricity from renewable energy sources for factory use in our own business activities, wewill promote the management of CO2 emissions throughout
the entire supply chain. Regarding climate change response,
following our TCFD endorsement announced in May 2021,
we closely examined the risks posed by climate change in linewith the TCFD framework and disclosed our strategies andscenarios in September 2022. P.39
The challenge is how to balance growth strategies withenvironmental responsiveness. It would be undesirable
for environmental responses to simply become costs thatsqueeze profit and impede growth. If they could result in a
medium- to long-term return, on the other hand, they could

represent a meaningful investment in the environment. We
recognize that our stakeholders expect us to pursue both thesustainability of society and the sustainable enhancement of
our own corporate value, so we will make progress whilefinding the right balance between investment and results.
We established the Sustainability Committee and theSustainability Strategy Department in April 2022. The committee is responsible for formulating overarching, long-term
Sustainability Management strategies, and the Strategy Department is responsible for managing the implementationof these strategies. As the global situation changes day byday, so do the important issues that we must address. We
ask the Sustainability Committee and Strategy Department
to listen to voices outside the company and to remain constantly aware of fresh materiality. We have already begun toaddress new topics such as human rights and biodiversity.
Sustainability Management means thinking about business and management from a societal perspective. It is essential for us to place importance on our connections withthe outside world, and to engage in dialogue with our
stakeholders. We believe that the suggestions we receive
here will contribute to improving our corporate value as weapply them to materialities, to our Medium-term Management Plan, and to our day-to-day business activities. P.15

We will further promotetransformation to steadily fulfill our
Medium-term Management Plan andrealize the C.I. TAKIRON 2030 Vision.

C.I. TAKIRON Group Integrated Report 202210

Sustainability
Management

Solid Cash Flow Management with an Outlook on Growth Investments“Solving social issues” and “Acquire new businesses,
products, and technologies” are precisely the measures bywhich we aim for the sustainability of the company and society. The Medium-term Management Plan sets aside 33 billion yen for growth, of which 30 billion yen will be allocatedto new businesses and investments to help solve environmental and social issues. In fiscal 2021, actual investment
in business and the environment was only 2.34 billion yen,so plenty of capacity remains. Of course, we have established strict quantitative and qualitative criteria for new investments, including profit scale, return on investment, andasset efficiency. If these criteria are not met, we will consider
whether or not to proceed, but we will always have multiple
seeds sown, and will always actively nurture new sprouts.
In fiscal 2021, R&D expenses rose 80 million yen from fiscal 2020 to 0.9% of sales. To further strengthen our R&D
function, we will invest management resources to contribute at least 2.0% in fiscal 2023. In terms of function, anIntellectual Property Department was placed under the con-trol of the R&D Division, launched in April 2022, to actively
implement measures such as the utilization of intellectual
property information from the R&D stage and the formationof an intellectual property portfolio.
I am convinced that the sustainability-related market willcontinue to grow and become a growth driver for the C.I.
TAKIRON Group. To ensure that we have sufficient strength
to continue these growth investments, we emphasize free
cash flow as a financial indicator. In fiscal 2021, the firsttime in three years that both sales and profits increased, operating cash flow reached a record 11.94 billion yen andfree cash flow was 4.42 billion yen, 203.5% of the previous
year’s level, showing that the company is responding well
to returning to its pre-COVID-19 growth trajectory. We willcontinue to improve asset efficiency through business selection and concentration, focus effort on cash flow management across the Group, and execute strategic investments inan agile manner. P.67

Improving the Management Infrastructure through Proactive and Reactive Measures
We are prioritizing the establishment of a support system
for the entire Group in order to accelerate our growth strategy. Our establishment of the Medium-term Management
Plan Materiality Management Committee reflects the factthat the KPIs of the previous Medium-term Management
Plan were not achieved. The committee analyzes our progress on the plan once a month, checking on issues categorized by theme, while the KPIs are also reviewed by the
Board of Directors to ensure close monitoring toward theimperative completion of priority action items.
In addition, the use of cutting-edge technology is an indispensable perspective in realizing the ideal we envision forourselves. The Medium-term Management Plan CX2023
specifies the adoption of digital technology as a key implementation item, and the DX Strategy Promotion Department, which was established in October 2021, is identifying
themes with the aim of utilizing digital technology without
being bound by existing values. It is essential for our DX
strategy to take shape step by step, with a clear vision of
the future that we want to bring into being. First, we needto create an environment that facilitates access to management data and order data, then aim for future forecasting of
inventory management. After that, we will be able to envision a new business model that utilizes Big Data. In this way,
we need to sort out the mixture of goals of different levels,

11

C.I. TAKIRON Group Integrated Report 2022

and determine where to apply the power of digital technology to find optimal solutions. Through our activities over the
past year, we have established a structure to promote DX bybusiness function, such as strategy management, production, sales, and R&D. We will proceed with planning andformulating digital strategies that contribute to increased
business efficiency and added value for customers.
In order to have our corporate value fairly evaluated froma medium- to long-term perspective, we are working tostrengthen our corporate governance with the deep commitment of our Outside Directors and Officers. In particular, the Governance Committee, which was established in
2021, has been working under a transparent structure led
by Outside Directors to examine and deliberate on the development of systems necessary to improve future corporate
value, including the examination of transactions involving
conflicts of interest with the parent company and other systems in line with the Corporate Governance Code. Our outside directors have diverse skills and a wealth of knowledge,
and they speak candidly from a variety of perspectives at our
meetings, leading to very lively discussions. I intend for us tocontinue to strengthen measures to enhance the transparency and effectiveness of governance and to increase theconfidence of our stakeholders. P.47

Investment in People
Although I serve as the company’s representative, there
is only so much that I can accomplish on my own. I believethat it is the role of management to support employees sothat they can live up to their fullest potential.
In fiscal 2019, the Company declared the Management
Commitment on Enriching Lives, and initiated health management and work-style reforms to enhance systems andraise awareness among employees. Having been certified
as an outstanding organization for health management forthree consecutive years since 2020, and obtaining Kurumin
Certification in 2021 as a company that supports childrearing, we feel that we are making steady progress.
We intend to work with our employees to nurture thevalue that lies beyond this initiative. Rather than taking apassive attitude, merely noting that the company has a new

system, I want to see us elevate the spread of ideas and motivation as a company by adopting an attitude of eagerness
to use this system to take on challenges in our careers.
To this end, there is still much to be developed, expanded,and elevated, including human resource development, ensuring diversity, health and safety, improving engagement, andrespect for human rights. Some of these have already been
set as materialities and as KPIs in our Medium-term Management Plan CX2023, but we will go beyond these and invest
more extensively in “people.”
C.I. TAKIRON has a long tradition of creating a culturethat encourages individuality. We believe that respecting individuals and supporting their work styles will not only improve labor productivity, but also contribute to increasing
corporate value in various ways. P.43

Ibogawa Office Inspection (October 2021)

With Technology and Agile Ideas, We Will Evolve into a Company That Is “Changing Tomorrow.”
The Medium-term Management Plan “Commit to Transformation CX2023” is an important inflection point for the
C.I. TAKIRON Group, as we enter a new stage in our quest
to reach even greater heights. The true value of more than
100 years of our history is now being put to the test. We will
never forget the pride we feel in the work we have accomplished throughout our layered history. Nonetheless, we willchange what needs to be changed. We have the courage tocreate a new era through innovation, without being boundby preconceived ideas. With enthusiasm and responsibility,
we in the management team, we will put this resolution
into practice together with all our fellow employees. We

hope that our stakeholders will take a closer look at thechallenges we undertake and give us their frank opinions
and suggestions.
The C.I. TAKIRON Group will steadily produce results byrefining technologies and applying ideas with agility under
Sustainability Management. Our strength is the sincerity
with which we continue to work conscientiously. In order
to live up to the expectations and trust of our stakeholders,we will continue to deal faithfully with society as a company
that is supporting today, changing tomorrow.

C.I. TAKIRON Group Integrated Report 2022

12

Sustainability
Management

Creating Value throughSustainability Management
Dialogue with
Stakeholders

The C.I. Takiron Group has been providing products and services
that create a people- and earth-friendly future through dialogue
with our stakeholders, being always mindful of our corporate
culture of pride in our accumulated value and the courage
to transform.
With a renewed commitment to change, we will now
deepen our sustainability management and contributeto everyone as a company that supports today andchanges tomorrow and contribute to the sustainablegrowth of society.

P.61 Engagement with
Stakeholders

Business Partners❺ Climate Leveraging Individuality

Pride in our
accumulated value
and the courage
to transform

13

C.I. TAKIRON Group Integrated Report 2022

Sales

P .3 6 M a t e r i a l i t y❹ Trusted Relationships with

030 Vision
N2
IRO
y
AK
alit
eri
at
M

❸ Customers First

Pro
d
u
cti
on

e
anc
uid
al G
logic
After-sales Services / Techno❷ Product Development and Design Capabilities

ment Plan (CX20
age n CX2023
2
an sformatio3)
M t to Tran

❶ Polymer Processing Technology

Corporate Culture

P.
1

mi
m
Co

Five Strengths

Pro
cu
re

7

/

lopment
Deve
&
h
arc
e
s
Re

Mediu
mte
rm
t
en
m

Ma
rke
tin
g

C.I
.T

Outcome
OutputSafety and Security

P.21 A Driving Forcefor Change

MissionConstruction
Materials Business

Polycarbonate building
materials, Housing materials,
Piping and pluming equipment,
Flooring materials, Decorative
materials, Water damage
prevention materials

Comfort andPeace of Mind

Creating a peopleand earthfriendly future

Environmental
Materials Business

Agricultural materials,
Binding materials,
Infrastructure materials, Civil
engineering products, Liquid
chemical tanks

Resilience*High Functional
Materials BusinessHeat-shrinkable films,
Zippers

Sustainability Vision*Ability to respond toand recover from social
difficulties and crises
such as natural
disasters and social
infrastructure

Environment

Supporting today, changing tomorrow

Specialty Films Business
Plastic sheets, Machining
materials, Micro motors

New capital acquisition
P.5 Financial/Non-financial Highlights

CapitalFinancial capital

Manufacturing capital

Human capitalIntellectual capitalSocial capital

Natural capital
C.I. TAKIRON Group Integrated Report 2022

14

Sustainability
Management

Sustainability Management at
C.I. TAKIRON Group
C.I. TAKIRON Group aims to achieve sustainable growth as a company and to increase corporate
value by contributing to solving social issues through our business operations. To this end, we
have introduced Sustainability Management, which integrates sustainability with management,
reflecting environmental, social and governance (ESG) perspectives in all corporate activities.

Basic Design of Sustainability Management
Sustainability Management at the C.I. TAKIRON Group focuses on the following two points.

Communicating with Stakeholders

In our overall conceptual approach to business and management, we take the perspective of social needs and expectations. We will respond to changes in the social environment
by promoting businesses that help solve social issues and address sustainability issues such as climate change, respect forhuman rights, and biodiversity.

We believe that disclosure and dialogue with stakeholders
are critical to Sustainability Management. We will heighten
Group sustainability by enhancing the disclosure of ESG information and other information through various media, including our official website and Integrated Report, and by flexibly
adopting suggestions obtained through dialogue.

VisionPhilosophy

Thinking of business and management from a social perspective

Group Corporate Philosophy
Mission Creating a people- and earth-friendly future
Aspired Corporate Culture Pride in our accumulated value
and the courage to transform

C.I. TAKIRON 2030 Vision

Sustainability Vision

To become a corporate group that delivers
peace of mind and comfort to the future of
our planet through creative evolution.

Supporting today, changing tomorrow

Stakeholders
Shareholders andOther Investors

Customers

Business Partners

Materiality
Local Communities

Medium-term Planfor Materiality

ActionMedium-termManagement Plan CX2023

C.I. TAKIRON Group
Corporate Code of Conduct

15

C.I. TAKIRON Group Integrated Report 2022

Government andMunicipalities

Employees

Sustainability Management System
C.I. TAKIRON Group established the Sustainability Committee in April 2022, chaired by the President, as an organization responsible for strategic planning and promotion of Sustainability Management. The Committee is situated within the company’s
executive organizational structure, and is tasked with coordinating with management in reporting to the Board of Directors.
The Sustainability Strategy Department, established at the same time, is responsible for overall progress on practical matters andcommunication with stakeholders.

Sustainability Committee Structure Diagram
Management

Executive

Board of Directors
Committee Chairperson: President

Reporting

Sustainability Committee
Secretariat: Sustainability Strategy Department
Each department of C.I. TAKIRON

Affiliate companies

Roles●Committee meetings held (2 times/year in principle)(1) Sustainability Management Strategy
・System design / ・Response to themes
・Review of Materialities / ・Communication
・Spreading awareness(2) Planning and performance management●Reporting to the Board of Directors
Themes for initiatives●Strengthen promotion system / system design●Address themes in response to changes in theexternal environment●Review of Materialities●Communicating with stakeholders●In-house education / propagation●Exploration of new themes

Communication of Sustainability Management
Dialogue with stakeholders is essential to Sustainability Management. As part of our stakeholder engagement efforts, wewill communicate our sustainability initiatives promptly to our diverse external stakeholders, including shareholders, institutional
investors, business partners and local communities. We will link the feedback we receive to the evolution of our Sustainability
Management.
Similarly, we emphasize internal communication to improve understanding among all Group employees regarding the significance of our sustainability efforts, our goals, and specific actions. In the latter half of this fiscal year, we will introduce the “Declaration on Sustainable Action,” which will indicate the specific action orientation we will adopt as a position of sustainability
commitment under our Sustainability Vision, to further promote its pervasive spread.

Themes for Sustainability Management Initiatives
C.I. TAKIRON Group has compiled priorities from among the themes for initiatives specified through fiscal 2021, with reference to the GRI, Corporate Governance Code, SASB, etc., and in consideration of the requirements of society. As a result, wehave positioned climate change, human rights, and biodiversity as priority themes for fiscal 2022, since they require further
action, and the entire Group will work on them.

[Themes for Initiatives]

Environment

Society

Governance

Climate change
Circular economy
Water
Biodiversity
Chemical substances
Human resources hiring/development
Workstyles
Setting
Diversity
Workplace Health and Safety
Priorities
Human rights
Supply chain management
Quality
Information Security
Local Community
ComplianceCorporate Governance[Key Themes for Fiscal 2022](1) Climate change
TCFD(2) Human rights
UN Guiding Principles,
supply chain management,
diversity, etc.
(3) Biodiversity
TNFD

C.I. TAKIRON Group Integrated Report 2022

16

FY2021-FY2023 Medium-term Management Plan

Commit toTransformation CX2023
We have divided the 10 years leading up to the “C.I. TAKIRON 2030 Vision” into threephases for backcasting, and have formulated this Medium-term Management Plan, “Commit to Transformation 2023 (CX2023),” for the first three years of the three-phase plan.
Commit to Transformation CX2023, which began in fiscal 2021, is now in its second year,
and preparations and preparations for growth are moving steadily forward.
In order to effect great change with unprecedented ideas and actions, we, all employees,
will align our vectors to achieve sustainable and secure growth while enhancing our corporate value.

CX2023 Toward Achieving the 2030 Vision

Phase 3
FY2027

Provide value to society
through continuous
creative evolution
Phase 2
Firmly establish the spiritof continuous creative
evolution in our
corporate culture
FY2021

Commit toTransformation CX2023
Initiate transformation
toward creative evolution

17

C.I. TAKIRON Group Integrated Report 2022

2030 Vision

Backcast

FY2024Phase 1

C.I. TAKIRON

Backcast

To become a corporate group thatdelivers peace of mind and comfort
to the future of our planet throughcreative evolution.

Medium-term Management Plan: Quantitative Targets and Results
Net Sales

Net Sales
Operating Profit
ROE
Operating Profit on Sales
ROA

200 billion

Increased revenue
and profit comparedto fiscal 2021¥

Operating Profit

150 billion

20 billion

157 billion

¥

¥

¥

141.9 billion¥

Operating Profit Margin10%

7.9% ¥11 billion

7.6%
8.6 billion

¥

6.1%

6.0%

8.2 billion

¥

7.0%

5.5%

4.6%
3.7%

2021

4.8%

2022 (forecast)

FY20302023

Phase 1

Phase 2Phase 3

Commit to Transformation

C.I. TAKIRON
2030 Vision

CX2023

FY2021 to FY2023

Initiate transformation toward
creative evolution

Firmly establish the spirit ofcontinuous creative evolution
in our corporate culture

Provide value to society
through continuous
creative evolution

To become a corporate group that delivers
peace of mind and comfort to the futureof our planet through creative evolution.

Medium-term Management Plan and Materiality Management Committee

We will respond flexibly to changes in the businessenvironment and accelerate creative evolution.

Toshio Tamaki
Vice Committee Chairpersonof Medium-term Management Plan and Materiality
Management Committee
Managing Executive Officer
Chief Operating Officer of the
Corporate Planning Div. andRecycling Adaptive Materials
Promotion Supervisor

Having completed the first year of our Medium-term Management Plan “Commit
to Transformation CX2023,” we are generally off to a good start. We will steadily implement the plan to achieve our final target for fiscal 2023. The ever-changing global
situation demands constant updating of the perspective from which strategies areformulated, and of our approach to risk management. We have also revised upward
our CO2 emission reduction rate target, which is a KPI for solving social issues, one of
our priority measures. We will continue to focus on business activities that respondflexibly to change and meet the needs of society.

C.I. TAKIRON Group Integrated Report 2022

18

Progress on Medium-term Management Plan: Priority Measures
Six priority measures

1 Solving social issues

We will contribute to solving specific social issues by being consciousof social sustainability and steadily implementing business activities
and materiality based on the SDGs.

2

Acquire new businesses,
products, and technologies

With an eye on future changes and demands, we will take on thechallenge of creating new businesses, products, and technologies
that will lead the next generation.

Number of environment-friendly product development themes
CO2 emissions reduction rate (Scope 1/2) (compared to FY2018)*2
Number of waterside clean aid activity participants (total participants for theyear, including community clean-up activities)*2
New product sales composition (non-consolidated)

Sales from new business areas
Number of new technologies created (number of patent filings)
Overseas sales composition

3 Accelerate borderlessness

We will enhance corporate value and pursue business growth froma “borderless” perspective, including global expansion of sales andproduction bases, marketing based on new value standards, andachieving diversity (gender, race, nationality, religion, and age) in theorganization and corporate culture.

Ratio of female employees in management positions (as of April 1, 2024)*2 *3
Ratio (as of April 1, 2024) of women in leadership positions*4

Ratio of female employees in career-track positions (as of April 1, 2024)
Percentage of career-track female hirees *2

4 Adopt digital technology

We will explore the use of cutting-edge technology in all businessprocesses to pursue results such as improved work efficiency, laborsavings, and cost reductions. We will promote the use of digital technology to create new added value in our sales activities and create a
new business model.

5 Restructure group management
We will create value as a consolidated entity by maximizing the efficiency of complex business collaboration and investment.

improve our
6 Further
management baseWe will further improve our program design with a focus on work-lifebalance and carry out the commitments made in the Management
Commitment on Enriching Lives for all employees. We will also strive
to create a safe and secure workplace by re-evaluating our work
environment and daily communication to ensure no accidents andharassment takes place.

Digital maturity score*2

Consolidated operating profit margin
Businesses/companies running at a loss*6

Management
Commitment on
Enriching Lives

Employee work engagement score*7
Employee loyalty score*8

Critical compliance violations*9

1 Investment budget set at ¥33 billion
2 sources of growth

2 newly establishedsupport systems

19

C.I. TAKIRON Group Integrated Report 2022

2 Total R&D budget set to at least 2% of net sales
1 Specialized digital strategy team2M
 edium-term management plan and materiality management committee

FY2021
TargetResults

10 per year

16

8% reduction 26% reduction

Overall
Individual
EvaluEvaluation
ation

〇
〇

〇

FY2022
Targets

FY2022 Issues

FY2023
Targets

10 per year

From this fiscal year, the applicability of environmental considerations will be judged morestrictly based on new conditions.*1 The target values we aim to achieve remain unchanged.

15 per year

the fiscal 2021 results are compiled and analyzed, the KPI targets will be revised
27% reduction After
28% reduction
upward. We will promote reduction of CO emissions.
2

300

859

〇

At least 1,000 KPI revised upward as we intend to intensify activities in the current fiscal year

At least 1,200

15% or above

20.8%

〇

are expected to be excluded from the aggregate in fiscal 2022 and thereafter.
18% or above products
Although achieving targets will become more difficult, implementation will proceed 20% or above

Due to the expiration of new product registrations (3-5 years), an increasing number ofwith KPI targets unchanged.

¥2 billion
or more¥35 million

×¥4.5 billion
or moreDevelop an educational program action plan including a contest designed to improveplanning skills by creating new business plans. Implement a review of new businessstrategies and focus on human resource development.

35 per year

34〇

42 per year

At least 50
Set targets for each business division, raise awareness of the need to achieve them, andpromote patent applications.
applications/year

―

17.7%

〇

18.6%

―

―

―

△

¥6 billion
or moreAlthough growth has been steady, the issue is formulating plans to promote further
increase in overseas sales. Aim to develop and implement measures to support andpromote each business unit

20% or above――

3% or above―

In fiscal 2021, the ratio increased by 0.6% over fiscal 2020, bringing it closer to the final
target of the Medium-term Management Plan for fiscal 2023. The goal is to achieve
the target in fiscal 2022.

5% or above

―

4.6%

〇

―

16.4%

×

―

A significant deviation from the final target of the medium-term plan for FY2023. The
ratio of career-track female employment ratio will be added as a new KPI item, and thepersonnel strategy for mid-career hiring will also be reviewed to further increase theratio of female employees.

20% or above

―

―

―

―

―

40% or above

At least 2.0

The digital maturity score will be switched to the Information-technology Promotion
Agency of Japan (IPA) diagnostic method adopted by many companies in fiscal 2022.
Newly establish a DX Strategy Promotion Department in October 2021. Launch a DX
Promotion Project and complete a system to promote digitalization by business function. Formulate an action plan for the introduction of a new production management
system to unify all plants. Start introducing sales support tools in 1Q fiscal 2022. Improve the efficiency of sales operations while considering effective use of the system.

At least 3.0

5.5%

There are concerns about the impact of high raw material prices and international
instability on operating profit. Further cost reductions and pass-through to sales prices
will be implemented to achieve the target.

7% or above

Review the affiliate company management system (rules, evaluation categories, and withdrawal criteria). In addition, the Group’s management will be reviewed from the perspective of supporting affiliate companies and reorganizing the Group’s management.

Zero

At least 3.0

0

△

―

1.4*5

―

At least 5.7%
overall

6.1%

〇

1

1 business operation,
5 subsidiary companies

×

1

―

2.5

△

―

―

2.8

△

―

There was no improvement or change in score in fiscal 2021, but a new attempt wasmade to conduct multifaceted observations, and we expect to see this result in future
score increases. We achieved our targets for the rate of paid leave taken, for zero employees working prolonged hours, and for the ratio of male employees taking childcare
leave. We will continue to promote improvements in these scores.

0

0

〇

0

We will continue to plan and implement awareness-raising educational measures in
the current fiscal year.

―

△

△

×

Growth investment for fiscal 2021 was 3,079 million yen. Challenges in generating investment ideas. The
Head Office Support Fund Program was implemented to actively promote investment. Continue to promote
investment in growth.

△Establish the new R&D Division in April 2022, with an Intellectual Property Department under its control in
addition to an R&D Department. Mobilize cooperation on intellectual property aspects to strengthen R&D.
Continue to consider effective uses of R&D funds to shorten development periods, generate ideas, andpromote acquisition of new businesses, new products, and new technologies.

〇

New DX Strategy Promotion Department established in October 2021. The department will lead and supervise
the Group’s overall DX advancement efforts from a comprehensive standpoint, and plan and promote thecompany-wide DX strategy. It will accelerate the use of digital technology not only to improve partial operational efficiency, but also to enhance operational sophistication across the entire company. DX will be achievedby transforming business processes and creating new business models to further strengthen competitiveness.

〇

Establish a system of committees, subcommittees, and working groups with cross-departmental membership to monitor the progress of the Medium-term Management Plan and review measures (held 12 times).
Meetings are scheduled to be held once a month throughout fiscal 2022.

*1: Starting this year, the new definition is “products that contribute to the achievement of the SDGs,” and only projects that have completed DR3 will be counted. *2: Items revised or newly establishedbased on fiscal 2021 results. *3: Includes positions at or equivalent to management rank. *4: Leadership positions are career-track positions (including managerial positions) in the level of “performing duties
while leading members of the organization in the tasks, objectives, and issues assigned” or higher, as defined in the company’s personnel system (grade system). *5: The results for fiscal 2021 are reference
values based on the new diagnostic method to be adopted in fiscal 2022. *6: Excludes businesses and operating companies that have been newly established within the last five years and businesses andoperating companies for which the Board of Directors has resolved to withdraw from. *7: Employee engagement score: A score on a scale of 1 to 4 based on the results of a questionnaire designed to measureemployees’ energy, enthusiasm, and level of immersion in their work. *8: Employee loyalty score: A score on a scale of 1 to 4 based on the results of a survey designed to measure employees’ satisfaction withthe company and their expectations for the future. *9: Number of violations that fall under our internal definition of a major compliance violation and that are disclosed externally in light of their social impact.
C.I. TAKIRON Group Integrated Report 2022

20

Business Overview

A Driving Force for Change
The C.I. TAKIRON Group contributes to better life and development of society in addition
to solutions toward environmental and social issues in four business sectors driven by its
technology and expertise accumulated over more than a century.
FY2022 Results by Segment
Other ¥664 million
0.5%
Specialty Films Business¥21,352 million
15.0%High Functional
Materials Business¥21,625 million
15.2%

Net Sales

Construction
Materials Business¥44,418 million
31.3%

141,936 million

Other △¥54 million△ 0.6%
Specialty Films Business¥1,440 million
16.6%

year-on-year

8,651 million¥¥

Up 5.6%

Operating Profit

Construction
Materials Business¥2,716 million
31.4%

Environmental
Materials Business¥53,874 million
38.0%High Functional
Materials Business¥3,144 million
36.3%

Up 1.6%
year-on-year

Environmental
Materials Business¥1,405 million
16.2%

Affiliate companies[Construction Materials Div.]●Housing Materials Business/ Flooringand Decorative Materials BusinessJapan

SANWA SIGNWORKS
C.I. TAKIRONPLUS●Flooring and Decorative Materials Dept.

[Environmental Materials Div.]
Capital contribution ratio

TAKIRON MATEX

100%
100%

[High Functional Materials Div.]●High Functional Materials Div.
Japan

TAKIRON-ROWLANDTAKIRON POLYMERCIK NANOTEKOverseas SHANGHAI CIK ELECTRONICS

100%

Overseas TAKIRON INDONESIA

75%

100%
Capital contribution ratio●Infrastructure Material Dept.
Japan

DAILITE
C.I. TAKIRONCIVIL

Japan

TAKIRON TECH
C.I. TAKIRON LOGISTICSDAIPLA WINTESMAVERIQ Partners

Overseas SHANGHAI C.I. KASEI TRADING COMPANY

21

C.I. TAKIRON Group Integrated Report 2022

90%
100%

Capital contribution ratio

91.62%
100%[Specialty Films Div.]
Capital contribution ratio●BONSET Business Dept.

BONPACK

100%

Japan

100%

Overseas BONSET AMERICA

100%

BONSET LATIN AMERICA

98.23%●SANZIP Business Dept.

[Other Affiliated Companies]

Capital contribution ratio

HOKKAIDO SANPLUS
C.I. TAKIRONAGRI
C.I. MATEX

Japan

83.24%

Overseas BONLEX EUROPE

Japan●Agricultural Materials Dept.

Capital contribution ratio

100%
100%
100%
60%
100%

Overseas SHANGHAI SANPLUS PLASTIC

Capital contribution ratio

95.71%
80%
86.0%*(56.0)Capital contribution ratio

100%*Figures in parentheses indicate the percentage of indirect ownership (inclusive). The breakdown is as follows.
BONSET AMERICA 56.0%

Construction Materials Division

P.23

We will promote global manufacturing that contributes tosolving social issues by integrating product-out andmarket-in approaches.
The Construction Materials Division, which provides customers with construction material products thatthey can see and touch directly, has set integration of product-out and market-in approaches as a theme
for the Medium-term Management Plan and is working to plan and develop products that meet the needsof customers. We will further enhance our efforts to integrate manufacturing and sales both in Japan andoverseas by using our advanced manufacturing technologies to create products that meet the needs ofthe market. In addition, to play a role in the Group’s sustainability management efforts, we will focus on
manufacturing that contributes to reducing environmental impact, such as the use of recycled and biobased raw materials, and we will contribute to solving social issues by specifically addressing the SDGs
through our core business.

Environmental Materials Division

Akihiro Ueda
Director Senior Managing
Executive Officer
Chief Operating Officer of theConstruction Materials Div.

P.25

We will accelerate our efforts to meet environmental needs by expanding
our value chain to leverage our partnerships with Group companies.
In fiscal 2021, we integrated the Group’s civil engineering business, and in fiscal 2022, we integrated two
agricultural material sales companies, laying the groundwork to strengthen the consolidated management structure of our Environmental Materials Division. Although the business environment continues tobe challenging due to such factors as the sharp rise in raw material prices since fiscal 2021, fiscal 2022
will be a year to solidify our foothold to achieve the final year of the Medium-term Management Plan. We
will therefore steadily prepare for the future through efforts that include developing new environmentallyfriendly products, improving operational efficiency by advancing DX, and strengthening recycling andrenewal initiatives. By further refining and strengthening our management foundation, we aim to achievesustainable business growth through expansion of our value chain, which covers upstream and downstream aspects of our business, namely manufacturing, sales, and installation.

High Functional Materials Division

Takahisa Miyake
Director Senior Managing
Executive Officer
Chief Operating Officer of theEnvironmental Materials Div.

P.27

We will establish a profit base that is resistant to change, anddriven by market growth in advanced technology fields such as
semiconductors.
In addition to the two fields of primary plates and motors, the High Functional Materials Division balances theautonomous activities of its operating companies, which have unique technologies such as nanomaterials,
machining materials, and eyewear materials, with the supply of materials and components to semiconductors
and other advanced technology fields as its core business. Although these markets are expected to continue
to grow at a high rate, the supply situation of raw materials and energy is changing on a daily basis against
the backdrop of the uncertain international situation. The situation might be likened to a ship traveling underclear skies, yet buffeted by rough seas from all directions. Under such circumstances, we will fulfill our Medium-term Management Plan by maximizing the abilities of our workers, enhancing our product supply capacity, and achieving overwhelming cost competitiveness as we also strive to realize our ideal state for 2030.

Specialty Films Division

Takashi Yamasaki
Executive Officer
Chief Operating Officer of theHigh Functional Materials Div.

P.29

We will accelerate improvements in productivity andenvironmental responsiveness while enhancing functionality
through structural reforms.
Among our Group businesses, the growing need for environmentally friendly products is most prominent
in the market environment of our BONSET Division, and we will continue to accelerate the development
and supply system for sustainable products. In fiscal 2021, the SANZIP Business Department embarked on
Renovation & Innovation by reviewing its product portfolio, increasing production capacity at domestic
and overseas production bases, and implementing automation and DX. In fiscal 2022, we will reap theearly results of these productivity-enhancing efforts. Through these efforts, in fiscal 2022, the second yearof the Medium-term Management Plan, we will become a growth driver for the Group and demonstrate
our true functionality through structural reforms and value-added product improvements.

Hidehiro ShimaManaging Executive Officer
Chief Operating Officer of theSpecialty Films Div.

C.I. TAKIRON Group Integrated Report 202222

Construction Materials Business
Our wide-ranging product lineup supports
comfortable living and urban environments

Construction Materials Business Growth Strategy
Business Description

Strength● Polycarbonate fabrication
technology and the best
manufacturing capacity in Japan● Polycarbonate building
materials, housing materials,
and slip-resistant vinyl flooringmaterials, all with high market
share● Comprehensive development
capabilities offering functionality
to construction materials● Global expansion throughoverseas production sites (BLX)

Opportunity● Increase in long-term superior
housing● Expansion of the scope of
application of the Building
Energy Efficiency Act● Changing lifestyles and values● Aging domestic population anddeclining birthrate● Expansion into untappedareas overseas● Demand expansion due tohigher living standards indeveloping nations● Enforcement of the Livestock
Barn Special Provisions Act

Weakness● Overseas sales channels forhousing and construction
materials products● Small flooring and decorative
materials business compared tomajor competitors● Limited expansion of overseas
flooring and construction
business sites● Our flooring and decorative
materials business is not acomprehensive interior design
company

Threat● Decrease in new housing starts● Shrinking market due todeclining domestic population● Rapid changes in weather
environment● Soaring raw material prices● Marine plastic pollution

Housing Materials BusinessWe handle rain gutters, drainage,and other water processing products
essential to housing construction, as
well as a wide range of construction
materials used in housing andnon-residential properties, such as
the Lume Wall high heat insulatinghoneycomb structured
polycarbonate panels that contributeto a decarbonized society.
Polycarbonate plates

Flooring and Decorative Materials BusinessWe provide flooring materials
offering excellent slip-resistantfunction for aquatic facilities,
safety in apartment corridors,
safety on stairs, etc., andbeautifully designed decorative
films that make room interiors
and buildings look attractive.
Slip-resistant Vinyl Flooring Sheet

Creating Social Value through Business
Development of a Decarbonized Society

Anti-bacteria/Anti-virus

Lume Wall high heat insulatinghoneycomb structured polycarbonate panels take advantage
of unique resin properties andproprietary Group processing
technologies to mitigate heatloss from openings while letting
in natural light. Lume Wall also
realizes low-carbon construction
which effectively limits the energy burden of lights and ventilation and contributes to measures
to combat global warming as Example of high heat insulating honeywell as the establishment of a de- comb structured polycarbonate panels
Lume Wall Installation
carbonized society.

Belbien fireproof decorative
films with adhesive provide an interior material with superior design versatile enough for both retail shops and offices, durability,
and water resistance. Neo Clean
offers slip-resistant vinyl flooring
sheets to use in restrooms andindoor spaces to repel dirt andmake cleaning easy. These products reduce viruses by more than
99% with newly added antibacterial and antiviral performance, Example of Neo Clean Flooring
Installation
providing a hygienic space.

23

C.I. TAKIRON Group Integrated Report 2022

Ideal Form CX2023
Product Out

Integrating Product-out and Market-in Approaches

Market In

Spearhead Innovation
Capitalizing on
Technological Capabilities
in Plastic Molding andProcessing Technologies

Collect Accurate
Information Leveraging
Sales Channels and Exhibit
Rapid ProductDevelopment Capabilities● This division strives to undertake new themes from environment-friendly products to those responding to disasters foundedin greater safety and peace of mind.
● We will respond to the rapidly advancing SDG trend.
● In production, we will improve technologies to save energy, recyProvide Services and Products Satisfying Latent Customer Needs
cle, and introduce raw bio-based materials.
● We will also expand overseas development of interior products
even further, focusing on production sites not only in Japan but
also in Europe.
● We will establish business models adapting to environmental issues from a global perspective.

Priority measures emphasized in this project1

Solving social
issues2

3

Acquire new businesses,
products, and technologies

Accelerateborderlessness

4

Adopt digitaltechnology

5

Restructuregroup management

6

Further improve
our management base

CX2023 Progress and Medium-term Targets
FY2021

FY2022

FY2023Medium-term Targets● Optimization of Group
production system forpolycarbonate products● Establishment of C.I.
TAKIRONPLUS CORP. in
April 2021 (integrating
sales structure for building
materials distribution andhome centers)● Development ofenvironmentally friendly
and disasterprevention/mitigation
products● Sharp cost increases due
to soaring raw material
and logistics costs reflectedin product prices● Cost-cutting and pricerevisions in response tofurther increases in raw
material prices due to theinternational situation andthe weak yen● Expand sales ofenvironmentally friendly
and disasterprevention/mitigation
products● Advance rationalization
through DX● Maximize existing business by increasing market share of
key products● Strengthen Group management and enhancecompetitiveness through digitalization● Pursue a decarbonization initiative by strengthening
design proposals and product development of Lume Wallhigh heat insulating honeycomb structured polycarbonate
panels and other environment-friendly products.

FY2023Medium-term Targets● Strengthen development of
new products in pursuit offunctions and designs thatare in demand amongcustomers● Prompt response tochanges in overseas
markets in the aftermath of
COVID-19● Pursues de facto standards embodying safety andsecurity as basic concepts while fully distinguishing itself
in the overall condominium market● Accelerate borderless operation by shifting overseas andstrengthening overseas bases (Europe, North America,
China)FY2021● Developed Belbien
nonflammable decorativeadhesive film with
antibacterial and antiviralproperties, and NeoClean
anti-slip vinyl floor sheet,for simultaneous release in
April 2021.

FY2022● Expansion of recycled
products overseas● Expansion of sales ofPlus Care, a flooringmaterial with anti-slip
performance andelasticity for greater
safety(Millions of Yen)

Net Sales
Operating Profit(Millions of Yen)

Net Sales
Operating Profit

FY2020

FY2020Flood Protection

Bonlex Europe S.r.l., a C.I. TAKIRON manufacturing Group
company in Italy, developed BONLEX decorative resin laminate
sheets for interior applications
with PET laminated sheets using
recycled raw material to achieve
the provision of a sustainableproduct. The supply area continues to expand steadily, particularly in Europe.

Flood Safe Light lightweight,
high-strength, detachable waterproofing panels are made of polycarbonate resin, and have a grade
equivalent to Ws-6, the highest
performance rating in the flood
prevention performance evaluation (JISA 4716) of the JIS standard, protecting assets from flood
damage caused by torrential rains
and typhoons, which have beenfrequent in recent years.

25,9271,099

FY2021

15,930832

Recycling

Example of BONLEX Installation

FY2021

26,216
1,237

18,491
1,617

Fiscal 2022 outlook

28,600
1,650

Fiscal 2022 outlook

19,100
1,240

Example of Flood Safe Light

C.I. TAKIRON Group Integrated Report 2022

24

Environmental Materials Business
Offering materials that support the function andsafety of social infrastructure

Environmental Materials Business Growth Strategy
Business Description

Strength

Weakness● Industry share and brandstrength● Production technology
capabilities● Sales system and customer
support capabilities● Support capabilities frommanufacturing and sales toprocessing, and construction
stages● New Group productdevelopment system● System for collaboration withexternal partners

Opportunity

Threat● Expansion of demand forinfrastructure redevelopment
and renewal● Expansion of demand forenvironmental responsivenessand product longevity● Labor-saving needs due toshortage of human resources● Expanding demand in emerging
countries● Decline in domestic demand in
existing businesses● Plastic materials recycling issues● Rising installation andmanagement costs due to ashortage of human resources● Quality improvement among
overseas manufacturers

Agricultural Materials BusinessWe contribute to agriculturaldevelopment by expanding a
product lineup centered on highly
functional agricultural films thatare able to realize the optimal
environments for growing
vegetables and fruit to satisfy
customer needs.
Agricultural Films

Infrastructure Materials BusinessWe support social infrastructure
by developing and renewing
waterproof/impermeable sheets,
high-density polyethylene pipes,
and other related materials
increasing the lifespan andemergency readiness of facilities
through redevelopment andrenovations of social
infrastructure.

Waterproof Geomembranes

Creating Social Value through Business
Plastic Resource Recycling
The C.I. TAKIRON Group manufactures and sells plastic products fromagricultural greenhouses to tunnel
covering materials, multi-purpose products, and silage wrapper as essential
materials for agricultural production.
Therefore, we address these various
challenges with the aim of building acomplete recycling system for post-use
agricultural films as well as promote thedevelopment, use, and standardizationof materials leveraging biodegradable
plastics as a member of the Japan Association to Promote Recycling of Agricultural Film and the Association of
Biodegradable-Plastics for Agriculture.

25

C.I. TAKIRON Group Integrated Report 2022

Change in Agricultural Waste Plastic Emissions
and the Recycling Rate
Recycling Rate (%)

Emissions (Thousand Tons)
200

Biodegradable Films

80

150

60

100

40

50

20

0

0
1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2012 2014 2016 2018 (Year)
PVC Films

PO Films

Other Plastics

Recycling Rate

Ideal Form CX2023

The Transition from Goods to Services● Commoditization

Solving Social Issues ● Diversification andCompetitive Advantages(Introduction of● We will leverage our strengths, such as our large industry market share,● Price Competitiveness Digital Technologies)● Increase of Profitability
brand power, and customer support capabilities including construction.
● We will shift to a business that can sustain growth in the mature domesTransformation
tic market, such as maintenance, renewal, and recycling, in addition to
Product Goods
Services of Businessthe traditional business of making and selling products.
Model● Overseas, we will expand our business by developing products that meetthe needs of local markets.
Pursuit of extensive and satisfying services realized through goods● We will further strengthen links with Group companies to cover everything from manufacturing to sales and installation, and expand the value
chain with comprehensive Group capabilities based on our consolidated product development and sales capabilities.
● We will focus on developing products that are of high quality, highly functional, safe, secure, and environmentally friendly.

Priority measures emphasized in this project1

Solving social
issues2

3

Acquire new businesses,
products, and technologies

Accelerateborderlessness

4

Adopt digitaltechnology

5

Restructuregroup management

6

Further improve
our management base

CX2023 Progress and Medium-term Targets
FY2021

FY2022

FY2023Medium-term Targets● Demand for certain
greenhouse materials at theend of the fiscal year before
the price revision● Decrease in sales due to theprevious year’s winddamage-related demand,
producers’ reluctance to buy
amid the COVID-19
pandemic, and delays andpostponements of businessproperties● Revenue increase due torush demand anticipating
price revisions in response tosoaring raw material prices● Merger of two Group
companies to form C.I.
TAKIRONAGRI Corporation
strengthening the supply
chain● Launch and expansion ofsales of environment-friendly
products● Increase in sales ratio ofhigh value-added products● Greater ability to respond to producer needs● Expansion of business domains by further strengthening
cooperation with Group companies and deepening sales capabilities● Advancement in commercialization of smart agriculture withhorticulture-related materials● Market penetration and expansion of Japanese-quality
agricultural coverings in East Asia

FY2021

FY2022

FY2023Medium-term Targets● Continued strong demandfor disaster reconstruction
and renewal of piping● Strong sales of Howellpiping for large properties● Construction delays due tothe COVID-19 pandemic
and heavy snowfall● Merger of two Group
companies to form C.I.
TAKIRONCIVIL Corporation,
strengthening our presence inthe civil engineering market● Sales decreased due to delays
in large projects, despite
continued strong demand fordisaster reconstruction andsales of pipe renewal andHowell pipe

● Expansion of the value
chain through Group
consolidation● Offer new products fordisaster prevention/mitigationand clean energy, whiledeveloping environmentfriendly products● Capture demand in the field of infrastructure renewal,
including renewal and repair maintenance of highways,
tunnels, sewers, etc.
● Focus effort on disaster recovery, disaster prevention, andpollution control● Strengthening of projects related to the Linear Chuo
Shinkansen(Millions of Yen)

Net Sales
Operating Profit(Millions of Yen)

Net Sales
Operating Profit

FY2020

FY2021

32,670737

FY202033,874753

FY2021

22,260
1,592

20,000651

Fiscal 2022 outlook

35,600770

Fiscal 2022 outlook

21,200880

Disaster Prevention Measures

Measures to Deal with Aging Infrastructures

Among our main measures tohelp solve the problem of increasing damage caused by anomalous (extreme) weather events,
our Group helps to strengthen
preparations for new anti-flood
ponds, dam renewals, and otherstorage facilities in addition todrainage facilities to collect rainfall, and embankments as well as
reinforcement businesses while
also actively striving to build processing facilities for the waste River Bulkhead (Sheet)generated in disasters.

Aged infrastructure is either nolonger used due to disasters or
has resulted in accidents. Japan
fears a growing number of thesetypes of incidents in the future. In
response to these challenges, ourGroup promotes the redevelopment of facilities and the renewal
Sewageof sewage pipes with emphasis
Pipe Before
on water and sewage systems.
RenewalSewage Pipe After Renewal

C.I. TAKIRON Group Integrated Report 2022

26

High Functional Materials Business
Sustainably provide products that support theaccelerating growth of advanced industrial sectors
and enrich people’s lives
High-performance Materials Business Growth Strategy
Business Description

Strength

Weakness● Abundant product Lineup● High market share and brandstrength● Solid sales channels● Meticulous technical support● Large product assortment limits
production efficiency● High dependence on thesemiconductor and FPD
industries

High Functional Materials Business
By improving basic performance and adding various functions, wehave enhanced the added value of our products and are deploying
them domestically and internationally. We provide products in a wide
range of fields, from those that support industrial infrastructure,including semiconductor manufacturing equipment, to raw materials
for products that enrich our lives.
<Plates>

Opportunity● AI, automation, and changing
work styles● Increasingly energy-efficient(lightweight, plastics)● Unprecedented demand forsemiconductor manufacturing
equipment amid proliferation of
5G, 6G, data centers,
metaverse, and EVs● Increased public expectationsfor SDG initiatives

Threat● Sharp fluctuations in demand
for semiconductor and FPD
manufacturing equipment● Changes in standards andregulations● Raw material price hikes andsupply chain disruptions due tosocial conditions

General-purpose andfunctional resin plates,
mainly PVC, PC, PET, etc.
Industrial plastic plate<Engineering plastics><Acetate boards>

Super castnylon

Eyeware frame
materials<Ultra-fine particles (nanomaterials)><Micro motors>

Coreless andbrushless motors

Creating Social Value through BusinessRealization of Decarbonization and a
Recycling-oriented Society
The Highly Functional Materials
Business Division kicked off theEco Plastics Project in fiscal 2021,
and is moving ahead with research and study toward planningenvironment-friendly
products
that are not bound by conventional business domains, and also
toward proposing business processes with sustainability in mind.
In fiscal 2022, our second year of
taking action, we are developing
plastic recycling plans and actions Recycled pellets containing biomass
waste
to assess effectiveness.

27

C.I. TAKIRON Group Integrated Report 2022

Reduction of CO2 Emissions
Each production site promotes
automation of production processes and implements energy-saving measures by selecting
equipment satisfying Top RunnerTarget Product Standards when
updating facilities. TAKIRONPOLYMER has set up a solar panel power generation system thatsaves about 560MWh per year.
While moving forward with measures to increase production, we
will continue to promote highly TAKIRON POLYMER Solar Panels
efficient production and activities
to reduce CO2 emissions.

Ultra-fine particle
materials

Ideal Form CX2023

Boosting Supply Capacity, Strengthening Competitiveness, andAdvancing Environmental Awareness in an Integrated Way● Accelerate growth through proprietary technologies and access to a wide range ofindustrial sectors, while building a highly profitable structure and establishing a solid
position for our current businesses.
● Our material technologies indispensable to a broad range of industries related to
semiconductors are always being refined to ensure the proper supply according tomarket needs.
● Through our relentless pursuit of new technologies, we continue to provide productsthat support the growth of society’s next generation, and contribute to the protection of the global environment.
● In the future, we will integrate our environmental initiatives with current and new businesses.

Priority measures emphasized in this project1
2
3
Solving social
issuesAcquire new businesses,
products, and technologies

Accelerateborderlessness

4

Adopt digitaltechnology

5

Restructuregroup management

6

Further improve
our management base

CX2023 Progress and Medium-term Targets
FY2021

FY2022

FY2023Medium-term Targets● We anticipated a sudden
recovery of capital investments
in semiconductors and rapidly
increased production especiallyfor its primary industrial plateproducts, by reinforcing
production equipment,enhancing production
efficiency and other suchmeasures.
● PET plates also continued toperform well, especially forsplash prevention panels● Choice was made to broaden
our lineup of gear heads andadvanced the development ofmotors with encoders● Growth in nanomaterials was
driven by strong demand fortelecommunications equipment
and data center facilities● The Highly Functional
Materials Business Division
withdrew from unprofitablebusinesses and consolidated
unprofitable products,
concentrating management
resources on highly profitablebusinesses● Sales of industrial plate andengineering plastic
materials for manufacturing
facilities increased due toglobal demand forsemiconductors, with new
facilities installed toincrease production● Completion of gear headlineup expansion andpromotion of developmentof motors with encoders● Strong growth in nanomaterials, especiallymaterials for electronic
circuit boards, due tostrong semiconductor
market● Increase of sales of acetate
plates in the eyewear
sector due to the easing of
COVID-19 restrictions,which stimulate
consumption● Completion of withdrawal
from unprofitablebusinesses and progresswith unprofitable productconsolidation● Establish a system toincrease production tomeet growing demand● Scheduled completion of
encoder-equipped motor
development● Establish a system toincrease production tomeet growing
nanomaterials demand● DX promotion for
operational streamlining● Promote planning andcommercialization ofenvironment-friendly
products● Promote expansion of production capacity (effective
utilization of new facilities, facility modification, andintroduction of new facilities) to meet increasing demand
for semiconductor manufacturing equipment.
● Product development aimed at utilizing plastics in anenvironmentally friendly manner● Accelerate planning and effectiveness evaluation activities
to establish an environmental adaptation scheme● In addition to individual motors, we are developing productswith gearhead encoder functions for a wider variety of
applications.
● Accelerate expansion of overseas sales networks● Promote streamlining of operations by taking advantage of DX(Millions of Yen)

Net Sales
Operating Profit

FY202017,4781,803

FY2021

21,625
3,144

Fiscal 2022 outlook

22,1002,330

Development of Environment-friendly Products
Following on fiscal 2021, the High Functional
Materials Business Division is considering ways toeffectively use biomass plastics and recycled materials from product development through the planningphases, such as the use of bioplastic PET as someof the raw material for ethanol produced using thepomace from sugarcane. We are also working on thedevelopment of products for reducing waste, including rigid vinyl chloride sheets, which are more thanhalf-composed with abundant natural salt. We arealso examining the development of sustainable products that utilize waste materials, including those withimproved durability.
Bioplastic PET Recycling Flow

Bioplastic PET

C.I. TAKIRON Group Integrated Report 2022

28

Specialty Films Business
Develop and design products that best supply themarket’s needs

Specialty Films Business Growth Strategy
Business Description

Strength● We can manufacture a variety
of products according toapplication with our uniquecompounding technologies● Global consumption-based
production and sales systemwith production bases in Japan(Hiratsuka, Okayama andTochigi) and overseas (China,
U.S.A., Uruguay).

Weakness● Few new products launched,other than existing ones
● Competition in technology
development, including IP
strategy

Opportunity

Threat● Expanding demand andapplications both domesticallyand internationally (food,chemical products,
pharmaceuticals, etc.)● Strict quality standards in Japan
impede entry of inexpensive
foreign products● Increased demand forenvironmentally friendly products● Increasing environmental
concerns leading to a shift toalternative materials for
packaging materials● U.S.-China friction and China
risk● Securing stable raw materials
for business continuity

BONSET Business
BONSET is a brand of shrinkablefilms (heat shrinkable films)
used for labels, cap seals,
molded products, and manyother various purposes bycapitalizing on a variety ofmaterial properties.

Heat-shrinkable films (applications:labeling, etc.)

SANZIP Business
SANZIP is a brand of plastic
zipper tapes used in diverse
fields, including the food andpharmaceutical industries.
Demand is increasing in
response to the growing
awareness of hygiene from the
COVID-19 pandemic.
Zipper tape (applications: food packaging
pouches, etc.)

Creating Social Value through Business
Development of Environment-friendly
Products (BONSET Business)

Development of Environment-friendly
Products (SANZIP Business)

The BONSET Business has completed development of botanical
PS shrink films using plant-derived
materials, which will contribute to
the reduction of CO2 emissions
by reducing the amount of petroleum-derived plastics used (by10%). This business will also plans
to start sales of products taking
into account the ease of PET bottle recycling in North Americanand further its adoption by major
Botanical PS Shrink Filmbeverage companies.

In both domestic and overseas
markets, we intend to reduce
the environmental impact of existing products by reducing theiruse (3% reduction in the use ofresin). In addition, we will start
selling mono-material zippers formaterial recycling of packaging
materials, especially in overseas
markets. This improves the recyclability of packaging materials
and enables excellent bag manuCirculation Cycle (mono-materials)
facturing performance.

29

C.I. TAKIRON Group Integrated Report 2022

Ideal Form CX2023

Creating a Highly Functional “Specialty” Films
Business Division● We will strengthen our commitment to ESG (environmentally oriented) products
and enhance our ability to respond promptly to customer requirements throughmarket development at our four bases around the world.
● In line with the Renovation & Innovation Project, we will encourage greater
automation, labor savings and productivity to strengthen competitiveness.
● In the BONSET business, we will accelerate our response to market needs withan eye to working with other companies.
● In the SANZIP business, we will rebuild an optimal “China + One” production and sales system.

Priority measures emphasized in this project1
2
3
Solving social
issuesAcquire new businesses,
products, and technologies

Accelerateborderlessness

4

Adopt digitaltechnology

5

Restructuregroup management

6

Further improve
our management base

CX2023 Progress and Medium-term Targets
FY2021

FY2022

FY2023Medium-term Targets● BAC and BLA performed
well, driving consolidated
results● Profit structure reforms
began● Strengthen collaboration
with key partners toenhance environmental
responsiveness● Expand market introductionof environment-friendly
products● Replacement and expansionof products with environmentfriendly products● Diversification of materials
purchasing from a BCP
perspective● Reinforce collaboration with partner companies, including
raw material suppliers and users● Launching environment-friendly products in the shrinklabel field in each global region(Millions of Yen)

Net Sales
Operating Profit

FY202015,9771,529

FY2021

17,526
1,079

Fiscal 2022 outlook

19,500980

FY2021

FY2022

FY2023Medium-term Targets● Zipper tape sales gained
momentum mainly overseas
due to concentrated
demand resulting from the
COVID-19 pandemic● Profit structure reforms
began● Strengthen production
system to meet domestic andoverseas customer demand(two production bases inJapan)● Introduce new
mono-material zippers● Restructure China + One
overseas production
system● Establish BCP system forraw materials used

● Increase production capacity to meet demand fromdomestic and overseas customers● Advance expansion of production bases outside of China to
expand sales in North America and Europe(Millions of Yen)

Net Sales
Operating Profit

FY20203,487
454

FY2021

3,826
361

Fiscal 2022 outlook

3,800
220

Biomass Plastic Identifiers
Biomass plastic products developed by
C.I. TAKIRON have acquired certifications
from the Japan BioPlastics Association(JBPA) and Japan Organics Recycling Association.
The BONSET Business has developed aproduct with a 10% usage ratio certified
by the Japan Organics Recycling Association. The botanical PS shrink film above
is a product which has acquired this certification.

C.I. TAKIRON Group Integrated Report 2022

30

R&D Division
Technological advancement gives rise to value only when it manifests itself in functions usefulto the customer. C.I. TAKIRON focuses on areas such as abrasion resistance, light and heat control, elasticity, and high durability. We are actively working to further increase customer value
in existing fields, to expand into new fields using existing functions, and to develop technologies that help solve social issues.

Overall R&D Strategy to Realize our 2030 Vision
Aggressive capital
Technological development strategy
Core Technologies

Material
compounds
Fabrication
Evaluation
Technology
etc.

Elemental Technologies

New Product Areas

Multilayering, extension technologies

Mono-materialization of
packaging films

Heterogenous material separation, compatibilization,
biodegradation evaluation technologies

Reduce, recycle, and makeeffective use of biomass andbiodegradable materials

Elastomer composite,
multilayering technologies

Develop stretchable film applications

Existing Sectors
Functionalize specialty films andsheetsPaint design, coating andsurface decoration technologies

Construction
Materials

High-quality extrusion, surface decoration,and fiber composite technologies

Reduce weight and refine design ofmobility components

Special surface treatment,slurry dispersion technologies

Increase dispersion of nanomaterials

Commit toTransformation
CX2023Marketing Strategy
Market environment changes / social issues

31

Climate change initiatives

Adaptation to a sustainable society

2

Decline in the working population

Contribution to labor saving in industry

3

Aging society and declining
birthrate Social Progress

Contribution to healthy and secure living

4

Creation of intelligent
housing building materials

Prevalence of electricvehicles/self-driving vehicles,
drones and construction machineries

C.I. TAKIRON Group Integrated Report 2022

Environmental
Materials

High
Functional
Materials

Perspectives on New Value Creation

1

5

Financial investment● Use of outside experts● Introduction of external
technology● Testing facilities, enhanced
analytical equipment
etc.

Helping advance resource recycling

Specialty
Films

Shorter lead times
Contribution to a smart society

CASE, MaaS, and contribution tolightweight advancement

Open Innovation● Joint development with end-users● Collaboration with raw material
manufacturers● Collaboration with Group companies
etc.

Message from the Chief Operating Officer, R&D Division

investment
Strengthen human resource development● Utilize consulting services by outside
experts● Dispatch personnel to external
research institutes and universities● Strengthen internal knowledge
utilization through DX
etc.

Strengthening investment in research& development¥3,140 million

Managing Executive Officer
Chief Operating Officer, R&D Division

2.00%

Hideharu Iwasaki

1,165 1,134 1,214
0.83%
2019

0.84%

0.86%

CX20232020

2021

FY2023 (Target)

New Sectors

Medium-term Management Plan CX2023
Boosts R&D to Further Accelerate Growth
C.I. TAKIRON will develop new technologies that contribute to
not only the SDGs but sustainability overall with the aim to fulfill the

Mobilitypriority actions in the Medium-term Management Plan “Commit toTransformation 2023 (CX2023)” to resolve social issues and create
new businesses, products and technologies. This will contribute to the

Packaging
Films

Healthcare

IoT

reduction of the environmental impact of existing products and the

C.I. TAKIRON
2030 Vision
To become a corporate groupthat delivers peace of mind andcomfort to the future of ourplanet through creative
evolution.

development of environment-friendly products. We will also promote
designs that take into account environmental impact assessments inorder to reduce environmental impact and develop environmentallyfriendly new products in existing and new fields.
In addition to working toward a sustainable society, we are also
seeking out needs to focus on by examining changes in the market
environment, such as the spread of AI and robotics amid an aging population, declining birthrate and shrinking workforce, progress in theuse of IoT in a smarter society, the shift to EVs in automobiles, the needfor lighter weight and more functional interior materials, and the evolution of homes that are both economical and environmentally friendly.
As for elemental technologies and their target fields, our research

Vegetable
Factory

and development focuses on the design of functional films and sheets
using multilayering and extension technologies based on material composite and fabrication technologies, composite product design using
nano- and compatibilization technologies, and surface functionalized
products using paint design and coating technologies.
The CX2023 strengthens research and development by investingat least 2% of net sales into research and development. To speed up

DX Utilization● Share know-how, know-who● Make development process management
visible● Adopt innovation tools
etc.

development, we will collaborate with external organizations and partners, invite in external experts, analyze information using IP landscapes,
and adopt DX solutions. We will also provide problem-solving training
and dispatch researchers to external organizations to foster young researchers.

C.I. TAKIRON Group Integrated Report 2022

32

Research & Development System
The R&D Department accelerates the further expansion of theand build businesses as new pillars of income through cooper-

technologies possessed in each business division through threeresearch and development sites and six groups. We drive forward
activities that create new products and businesses which can resolve environmental and social issues, meet customer needs, andadapt to the seeds that emerge from the integration of in-houseand external technologies.
In addition to the independent activities of the research anddevelopment as well as product development departments, we
aim to cultivate budding new businesses as new growth enginesation across departments. We also promote joint developmentwith end-users, collaboration with raw material manufacturers,
and use of DX to speed up development and create appealing
products that meet customer needs.
Through the use of consulting by outside experts and dispatching personnel to outside research institutes and universities, we
actively acquire and compile knowledge from outside the company as we strive to strengthen human resource development.

Core Technology

34

Number of New Technologies Created(Number of Patent Filings)(FY2021)

Toward realizing our ideal as a Group that engages in creative
evolution to reliably deliver security and peace of mind for the
future of the earth, we aim to provide value from the customer’s
perspective by developing unique, superior materials and compounds, as well as new installation technologies and construction
methods. We are developing high-value-added functional films
and sheets, as well as building processes to create new functions

TOPIC

by utilizing our core technologies of advanced material composite technology, various fabrication technologies, performanceand analysis evaluation technology, and other core technologies.
We therefore focus on development of diverse film, sheet, andpanel products with unique functions and characteristics in pursuit of the full potential of materials. We also contribute to theimprovement of product quality and the development of new
products by enhancing our analysis and evaluation techniques formaterials and materials molded during the R&D process.

Development of Cellulose Compound Utilizing Composite Blending Technology

We are furthering the development of a cellulose compound recognized as a paper in the Containers and Packaging Recycling Law. Our special proprietary composite
blending method that achieves a polyolefin compoundcontaining 51% or more cellulose, a natural fiber thatcan be labeled “paper”. Formulations can be designed
to suit various applications and molding methods, andthe reduced use of petroleum-derived resins contributes
to the reduction of CO2 emissions.

Creation of New and Environment-friendly Products
New product sales ratio

20.8

fiscal 2021,％ (non-consolidated)

The R&D Department and the product development departments of each business division are working together to revitalize
the development of new products throughout the entire C.I. TAKIRON Group. In order to materialize the new products that will
be responsible for tomorrow, we play a role in efforts for future
corporate development and growth as well as promoting thoseefforts and in the construction of a system for managing andpromoting the development system.
We are developing environment-friendly products, focusing on

33

C.I. TAKIRON Group Integrated Report 2022

the 3R+Renewable environmental initiative, reducing the use of
petroleum-derived resources and developing recyclable plastics,
biomass plastics, and biodegradable resins. We are reducing theamount of petroleum-derived resources used in our plastics byblending natural organic fillers such as starch cellulose, or inorganic fillers such as calcium carbonate and silica, into the polymer.
Regarding recycling, we are attempting to create new productsthat contribute to the mono-materialization of packaging films.
In order to improve the performance and processing of biodegradable resins and make full use of biomass plastics, we utilize
polymer processing technologies such as composite technologies
and shaping technologies possessed by C.I. TAKIRON.

Developing an Environment-friendly
Packaging Film GradeTOPIC

Our packing film is a polyolefin film with excellent elasticity that can secure goods as a substitute for cushioning materials used in parcel delivery
packaging materials. This packaging form contributes to a reduction of polymer waste by reducing the total amount of cushioning material compared toconventional products, and we are working on the development of gradesthat aim to further reduce the use of petroleum-derived resins.

C.I. TAKIRON’s Intellectual Property Initiative
One of the priority action items in our CX2023 Medium-term Management Plan is acquisition of new businesses,
new products and new technologies. We have establishedthe following basic policy regarding investment in intellectual
property to support this effort.
1. Practical action to create intellectual property to establish acompetitive advantage
2. Intellectual property clearance to ensure business execution
3. Development of intellectual property human resources tosupport business promotion

In particular, in taking practical action to establish a competitive advantage with intellectual property, we will continue
to focus not only on creating intellectual property that supports our business, but also on creating intellectual property
with an eye toward future business development. In addition,
in intellectual property clearance ensuring business execution,
we respect the intellectual property rights of other companies
and strive to ensure safe implementation, the first priority being to avoid infringement.

Patent enforcement status

Number of patent applications (domestic/international*)

Other 4%(cases)Currently in force

Futureenforcement

40%

17%

FY2021

50
JapanInternational45
40

613 cases

2
35
Security

39%

Overseas status of house mark trademark acquisition

25

5

10

30

1
10

20
Registered

Registered

Asia

15

16

Europe*66Africa2

2

North America22South America22Oceania

2

2

Total

29

30

*EUTM (27 countries) is counted as 1 for Europe.

36
15

25

25

10

18

29

2020

2021

5
0

2017

2018

2019

*“International” refers to PCT applications.

(Fiscal year)

C.I. TAKIRON Group Integrated Report 2022

34

Toward Sustainability Management

A Foundation for Transformation
We report on the E (environmental), S (social), and G (governance) activities that are thefoundation for the long-term, sustainable growth of the C.I. TAKIRON Group.
Our Group views social issue-driven business as the cornerstone of our management.
We aim to actualize our Corporate Philosophy by focusing on our connection with society
and transforming our ESG activities through dialogue with our stakeholders.

Environment

Taking on the Challenge of Carbon Neutrality

P.39● Environmental Management● Initiatives to Reduce CO2 Emissions● Climate Change Initiatives (TCFD Disclosure)

SocialP.43

Human Resource Strategies● Message from the Executive in
Charge of Human Resources● KPIs Related to Human Resources● Management Commitment on
Enriching Lives● Investment in Human Capital

Governance

Enhance Corporate Governance

P.47● Corporate Governance Framework● Compliance Risk Management● Directors, Audit & Supervisory Board Members, and Executive Officers● Special Feature: Governance Roundtable

Stakeholder

Engagement with Stakeholders● Customers● Business Partners● Shareholders and Other Investors

35

C.I. TAKIRON Group Integrated Report 2022

P.61

● Local Communities /Government and Municipalities● Employees

Materiality
The C.I. TAKIRON Group has specified ten items (priority
sustainability issues) around which to prioritize our efforts infiscal 2019 based on changes in social issues, such as SDGs,
as well as environmental, social and corporate governance(ESG) issues.
We have established a three-year Medium-Term Plan forMateriality with numerical targets for each of these issues.
We have also developed a system for the practical exerciseof Sustainability Management by incorporating some of thenumerical targets into our KPIs for priority measures, whichconstitute the qualitative targets of the Medium-term Management Plan.

● The Eight Subcommittees
In order to enhance the feasibility of the Medium-term Planfor Materiality, Working Groups each assigned a materiality are
managed by the Eight Subcommittees which are organizedwith cross-functional membership and handle everything fromplanning to execution of specific initiatives. Progress is managed by reporting the details of these activities to Medium-termManagement Plan Materiality Management Committee.

Subcommittees(1) Social Issues(4) Digital(7) Budget Management(2) New Product andTechnology(5) G roup Management(8) Public Relations(3) Borderlessness(6) Management
Foundation

Process to Define Materiality
Identify and organize
potential materiality
items that should beconsidered

Create a materiality
matrix by prioritizing
and weighting eachpotential materiality
item

Define the materiality
through a management review

Establish medium-termtargets for refinedMateriality through areview with members ofsupervising departmentsof each of the 10 Materiality items and membersof management

Establish a management
committee and review andmanage the progress ofmateriality items throughMedium-term Management Plan and Materiality
Management Committeethat is established

㉒

⓱⓲⓳
⓴㉑

123
456
789
⓾

㉓㉔㉕
㉖㉗

⓫⓬

㉘㉙㉚

⓭⓮⓯
⓰

High

Importance to
Stakeholders

ExtremelyHigh

Materiality Matrix

Importance to the C.I.
TAKIRON Group

Extremely High

1 Management Commitment on⓰ Strengthen sales power (problemEnriching Lives
solving capabilities)
2 Strengthen human resource⓱ Reduce the environmental impact
development⓲ Reduce the environmental impact
throughout the entire value chain
3 Eradicate occupational accidents⓳ Engage in comprehensive compliance
4 Promote diversity
and risk management response
5 Promote the active participation of⓴ Promote CSR procurement
women㉑ Enhance corporate governance
6 Promote the active participation of
disabled persons, senior citizens and ㉒ Climate change initiatives
foreign employees㉓ Ensure disaster response and create a
7 Advancement of polymer processing
Business Continuity Plan (BCP)
technology㉔ Disseminate information and engage
8 Expand environment-friendly products
in a dialogue with stakeholders
9 Handle marine plastic pollution㉕ Implement chemical substance⓾ Reduce and recycle waste
management and regulatorycompliance (RoHS, etc.)⓫ Cultivate a corporate climate㉖ Ensure harmony with local
supporting value creation
communities⓬ Enhance quality assurance systems⓭ Provide attractive and distinct (special) ㉗ Promote social contribution activities
products and services㉘ Expand use of renewable energy⓮ Improve customer satisfaction㉙ Pursue globalization⓯ Strengthen trusting relationships with ㉚ Forge academic-industrial alliances
customers
and provide academic support

10 Defined Materiality Items

C.I. TAKIRON Group Integrated Report 2022

36

Medium-term Plan for Materiality
Source ofCorporate GrowthMateriality Subject

Evaluation Standards (KPI)

1

Cultivate a Corporate Climate Number of challenge promotion measures implemented during the period
Survey-based evaluation of the extent the corporate culture where employees
Supporting Value Creation

2

Advancement of Polymer
Processing Technology

take on challenges has permeated

New product sales composition (non-consolidated)
Number of new technologies created (number of patent filings)
Rate of participation in in-house training classes related to diversity & inclusion

Respect of Individuality

Level of understanding regarding diversity & inclusion identified throughsurveys conducted after training
Ratio of female employees in management positions (as of April 1, 2024)*1 *2

3

Promote Diversity

Ratio of women in leadership positions (as of April 1, 2024)
Ratio of female employees in career-track positions (as of April 1, 2024)
Percentage of career-track female hirees*2
Ratio of employees who return to work after leave

Responsibilities to Society

Employee work engagement score

4

Management Commitment
on Enriching Lives

5

Handle Marine Plastic
Pollution

Employee loyalty score
Recognition status as an excellent corporation for health management
Number of waterside clean aid activity participants (total participants for theyear, including community clean-up activities)
Number of marine plastic related events and seminars held (total number ofseminars and events held for the period)
Request rate for CSR procurement policy to major domestic business partners(purchase base)

6

CSR Procurement

7

Reduce the Environmental
Impact8

Expand Environmentfriendly Products

Request rate for CSR procurement policy to major business partners by overseas group companies (purchase base)
Level of agreement with CSR procurement policy (based on business partner
survey)CO2 emissions reduction rate (scope 1/2) (compared to FY2018)*2
Number of themes of developing environment-friendly products
Environment related awards

Management Platform

Compliance related enlightenment and education implementation (ratio ofcompanies)

9Comprehensive Complianceand Risk Management

Critical compliance violations
Rate of completion of response to important risk Issues within period
Regular important risk reviews
Board of directors attendance rate
Formulation of corporate governance guidelines

10

Enhance Corporate
Governance

Financial results briefings
Number of times explanatory meetings were held
for shareholders/investors

Meetings with individuals
Small-sized meetings*1: Includes positions at or equivalent to management rank *2: Items revised or newly established based on fiscal 2021 results

37

C.I. TAKIRON Group Integrated Report 2022

Medium-term Roadmap
FY2021 Targets FY2021 Results FY2022 Targets FY2023 Targets

3

3

3

4

―

―

70% or above

70% or above

15% or above

20.8%

18% or above

20% or above

35 per year

34

42 per year

50 per year

100%

100%

100%

100%

40%

90%

―

60%

―

2.4%

―

3.0%

―

4.6%

―

5.0%

―

16.4%

―

20.0%

―

28.6%

―

40.0%

75%

81%

―

80%

―

2.5

―

At least

3.0

―

2.8

―

At least

3.0

Continued

Continued recognition Continued

300

859

Over

1000 people Over 1200 people

30

85

30

30

100%

100%

100%

100%

100%

0%

100%

100%

Operation to begin in fiscal 2022

―

100%

100%

8% reduction

26% reduction

27% reduction

28% reduction

10 per year

16

10 per year

15 per year

―

―

―

Aim to receive an environment
related award by FY2025

100%

100%

100%

100%

0

0

0

0

80%

80%

80%

80%

At least once

1

At least once

At least once

85% or above

97.6%

85% or above

85% or above

Gathering data for formulation of guidelines in FY2022

Information gathering
Policy formulation ―conducted (ongoing)

2

2

2

2

At least three times

1

At least twice

At least three times

―

―

―

At least once

Relevant Sustainable Development Goals(SDGs)

Relevant
Page
―

P.33

P.46

P.45

Continued

P.64

P.63

P.40

P.23
-34

P.51

P.47

C.I. TAKIRON Group Integrated Report 2022

38

Environment

Taking on the Challenge of Carbon Neutrality<Strategy for Carbon Neutrality>
C.I. TAKIRON Group isaiming for carbon neutrality (net-zero emissions) in fiscal 2050.
As an interim target, we aim to achieve the following levels of greenhouse gas (GHG)
emissions in fiscal 2030:● Scope 1 and 2: Aim for a 35% reduction (compared to fiscal 2018)● Scope 3: Reduction efforts throughout the supply chain

Environmental Management
The C.I. TAKIRON Group is working toward the goal of conserving the global environment through production activities
and new product development that take into consideration theirenvironmental impact in accordance with our Environmental
Philosophy and Basic Environmental Policy. In light of the world
situation, we have decided to announce our Strategy for Carbon
Neutrality and make our TCFD disclosures in fiscal 2022 in orderto more clearly fulfill our corporate mission. Primarily througha three-part committee structure, we will promote initiatives ineach department to enhance environmental responsiveness andachieve our goals.

Core Environmental Management Framework(1) Sustainability Committee: Responsible for the arrangement ofenvironmental measures from a medium- to long-term perspective, and for monitoring of each committee.
(2) Meeting to Promote Environmental Conservation: Committee
members selected from divisions closely related to production activities report regularly on the status of environmental conservation activities and issues at each site, and manage progress.
(3) Medium-term Management Plan and Materiality Management Committee, and Subcommittees: Priority action items of
the Medium-term Management Plan and measures to achieve
the goals of the Medium-term Plan for Materiality are reviewed
monthly by the Subcommittees and reported at Management
Committee meetings.

Organizational Framework

Philosophy Framework

Board of Directors

Mission of C.I. TAKIRON Group
Creating a people- and earth-friendly futureManagement Committee

Reporting

Recommendations

Reporting

Recommendations

Environmental Philosophy
We will strive to manufacture products that take into
consideration the people, earth, and future while always
keeping the conservation of our planet in mind.

Basic Environmental Policy❶ Promote decarbonization and reduction of the burdenof the environment in all of our corporate activities.
❷ Develop and offer environmentally-friendly
technologies and products.
❸ Proactively communicate with the community.

Strategies

Strategy for Carbon Neutrality
Medium-term Plan for Materiality

Reporting

Chairperson Chief Operating Officerof the Production Div.
Members
Production Planning
Dept.
Equipment Technology
Dept.
Corporate Planning
Dept.
Sustainability Strategy
Dept.
Secretariat
Production Planning
Dept.
Reporting

39

C.I. TAKIRON Group Integrated Report 2022

Committee
Chairperson President
Members
Management Committee
Members
Secretariat
Sustainability Strategy
Dept.

Meeting to Promote
Environmental Conservation

Medium-term Management Plan andMateriality Management Committee
Committee
Chairperson President
Members
Corporate Planning Div.
Corporate Administration
Div.
Each Business Division
Secretariat
Corporate Planning Dept.

Reporting

Recommendations

Reporting

Recommendations

Recommendations

Legal & Regulatory Compliance

Environment-related Laws

Sustainability Committee

Recommendations

Committee Meeting(Each department /conferencing body)

Reporting

Recommendations

Subcommittee(The Subcommittee
for Social Issues)

Initiatives to Reduce CO2 Emissions
In order to demonstrate that the C.I. TAKIRON Group is a sustainable company with long-term greenhouse gas reduction targets consistent with the Paris Agreement, we have revised our target for CO2 reduction upward from the previous target in line with the WB2°C*(a 30% reduction in Scope 1 and 2 in by fiscal 2030 relative to fiscal 2018) to 35%.
*WB2°C: Greenhouse gas reduction targets aimed at limiting global temperature increase to significantly less than 2°C above pre-industrial
levels.

Emissions Analysis
Greenhouse gas (CO2) emissions in fiscal 2021 were 625,000 (t-CO2).
Of these, Scope 1 and 2 accounted for 81,000 (t-CO2), or about 13% of the total, and Scope 3 accounted for 544,000 (t-CO2), or about
87% of the total.

Scope 1 and 2 CO2 emissions

Scope 1 and 2(Unit: Thousand t-CO2)

FY2018FY2019FY2020

FY2021

109

89

83

81

Scope 3 CO2 Emissions

13%

Scope 1

(Unit: Thousand t-CO2)

FY2018FY2019FY2020

FY2021

261

244

223

544 *

Scope 2

87%

*In fiscal 2021, the scope of calculation was expanded to include the entire Group and all
categories, 1 through 15.
*The C.I. TAKIRON Group has been working to reduce unit CO2 emissions by 1% from theprevious year, which is shown in the non-financial data (p. 68).

Scope 3

Scope 1 and 2 Emission Reduction Measures
Action we have taken for Scope 1 and 2 reduction has included
energy conservation efforts at each of the C.I. TAKIRON Group's
production sites in addition to energy creation through the installation of solar panels at some production sites in fiscal 2021.
In order to achieve our goals, we will work to optimize energy
use by further strengthening our existing energy conservation activities in parallel with the study of more drastic reduction measures.

Yasutomi Plant

Scope 3 Calculation and Emission Reduction Measures
For Scope 3, calculations were expanded in fiscal 2021 to cover the Group as a whole and all categories from 1 to 15. This
resulted in an emissions figure 320,000 (t-CO2) higher than in
2020. Category 1 (purchased goods and services) and Category
12 (disposal of sold products) account for about 59% and 25%

of Scope 3 emissions, respectively. We will continue to improve
the accuracy of our calculations while prioritizing reductions in
categories 1 and 12, and working to reduce Scope 3 emissions
throughout the supply chain.

Unit: Thousand t-CO2
Category
1 Purchased Goods and Services
2 Capital Goods
3 Fuel and Energy Activities Excluded from Scope 1 and 2
4 Upstream Transportation and Distribution
5 Waste Generated from Business
6 Business Travel
7 Employee Commuting
8 Upstream Leased Assets
9 Downstream Transportation and Distribution
10 Processing of Sold Products
11 Use of Sold Products
12 Disposal of Sold Products
13 Downstream Leased Assets
14 Franchise
15 Investment

FY2019
177.0
24.0
13.0
25.0
1.0
3.0
0.4
Outside Scope(Not Calculated)(Not Calculated)(Not Calculated)(Not Calculated)(Not Calculated)(Not Calculated)(Not Calculated)

FY2020
178.0
8.0
13.0
22.0
2.0
1.0
0.4
Outside Scope(Not Calculated)(Not Calculated)(Not Calculated)(Not Calculated)(Not Calculated)(Not Calculated)(Not Calculated)

FY2021
318.7
14.7
17.2
38.5
2.0
3.0
1.0
Outside Scope
4.0
Outside Scope
8.0
137.7
Outside Scope
Outside Scope
Outside Scope

C.I. TAKIRON Group Integrated Report 2022

40

Environment

Climate Change Initiatives
C.I. TAKIRON has identified climate change issues as one of its
key challenges, and in May 2021, the company pledged support
for the Task Force on Climate-related Financial Disclosures (TCFD).
We view events related to the climate change issue as a management risk, and actively promote reduction of greenhouse gas
emissions and development and provision of environmentallyfriendly products while identifying new opportunities to enhance

corporate value.
We will continue to analyze and assess the impact of climatechange on our business activities in line with the TCFD recommendations, formulate response measures based on multiple
scenarios, improve the resilience of our business, and communicate these efforts to our stakeholders in a more easily understoodmanner.

TCFD Initiatives

Governance

Strategies

As part of our governance structure, we have established a Sustainability Committee to ensure overall
control from a bird's eye view and a long-term perspective. The structure and roles are as follows.

A TCFD project team was formed to conduct thefollowing scenario analysis in fiscal 2022.

(Structure)
The committee is chaired by the President, its members are members of the Management Committee,
and it meets at least twice a year.
(Roles)Assessment of identified risks and opportunities ineach project due to climate change.
Disclosure of information on progress monitoring,and incorporation into business plans.
Expansion and promotion measures to address theserisks and opportunities from a medium- to long-term
perspective.

41

・Identify risks and opportunities associated with a
1.5°C and 4°C increase in temperature with time
horizons of 2030 and 2050, then complete thestudy of impact factors, impact elements, andbusiness impact assessments to finalize the results.
・Conduct studies to identify relevant parametersand formulas for financial impact assessments.

Important resolutions, including issues related toclimate change, are reported to the Board of Directors
through the Sustainability Committee, and a system isin place to ensure appropriate oversight by the Boardof Directors.

In the future, we will continue to expand the number of categories subject to scenario analysis andconduct more sophisticated and accurate scenario
analyses in order to enhance disclosure information.
We will also reflect the clarified risks and opportunities in the environmental strategies of each business,
incorporate them into environmental targets and action plans, and build a process to monitor and provide
feedback on the status of response to measures related to literacy improvement and risk management,
aiming to reduce risks and ensure that opportunities
are captured.

Risk Management

Metrics and Targets

We have established and are operating a Risk Management System by which we assess and render visible any
critical risks facing the company, and manage them organizationally on an annual basis to avoid or reduce losses.
In the event that such risks materialize, we consider andimplement measures to minimize their impact.
Climate change issues are also managed within the Risk
Management System, and specific measures to addressrisks and opportunities identified in scenario analyses arestudied and advanced.

In our Environmental Vision, we have newly set forth our“Strategy for Carbon Neutrality” for fiscal 2022, aiming toachieve net-zero greenhouse gas emissions by 2050. In addition, we have set 2030 as a milestone, the halfway point
to 2050, and will take measures to address climate-relatedrisks and opportunities as we target a 35% reduction in
Scope 1 and 2 compared to FY 2018.

C.I. TAKIRON Group Integrated Report 2022

FY2050 Greenhouse gas emissions: Net zero
FY2030 S cope 1 and 2: Aim for a 35% reduction (compared to fiscal 2018)

Scenario Analysis
With time horizons of 2030 and 2050 in mind, C.I. TAKIRON initiated a scenario analysis based on the TCFD recommendations and proceeded with a qualitative business impact assessment of each of the identified risks and opportunities in light of overall scenarios featuring
a 1.5°C and 4°C increase in temperature. We will continue to analyze the risks and opportunities by progressively considering specificmeasures to address them as we move forward with the financial impact assessment.
Anticipated Risk Items
Broad Cate- Intermediate
Detailed Categorization
gorization Categorization

AnticipatedElement

・Increased costs due to the introducNettion of a carbon tax
sales・Increased costs due to purchase of
Costs
emission credits

Policy / legal / GHG emissions prices(Carbon pricing, carbon tax, etc.)
regulatory

Technology
Transition
Risk・Increased energy costs
Development of energy conserCosts ・Increased costs due to investment invation and renewable energy
power generation facilities
Net・Decrease in demand due to delay in
Changes in customer needsales
low-carbon transition
Costs

MarketAcute Risk

Changes in water and raw materials procurement volumes

Net
sales
Costs

Natural disasters

Net
sales
Costs

Change in precipitation patterns

Net
sales
Costs

Average temperature increase

Net
sales
Costs

Sea level rise

Net
sales
Costs

Physical
Risk
Chronic risks

Anticipated Business Impact
EvaluOpportunity
ation

Risks

Evaluation

・Increase in use of low-carbon raw
materials that lead to reduction of
Major
GHG emissions
・Market expansion through expansionof low-carbon products
・Increasing the ratio of renewable
Modenergy to eliminate the impact oferatecarbon pricing
・Expanded product sales due toMajor
switching to and development of
low-carbon products

・Cost increase due to transition to
low-carbon raw materials
・Securing stable supply through by・Danger of product type consolidation
establishing circulatory businessdue to restrictions on procurement of Major
operations
fossil-derived raw materials
・Decrease in demand due to shift tounit sales prices
・Damage and suspension of operations
・Reputation improvement through endue to disaster
hanced disaster preparedness training
Major
・Supply chain fragmentation
・Expanded sales and market for disas・Decrease in demand due to suspenter countermeasure products
sion of shipping operations
・Damage and suspension of operations
・Reputation improvement through endue to disaster
hanced disaster preparedness training
・Increased costs related to heavy rain- Major
・Expanded sales and market for disasfall countermeasures expenses
ter countermeasure products
・Supply chain fragmentation
・Increased energy costs
・Cost reduction through DX
・Increase in GHG emissions
Major ・Expanded sales for and market for・Increased risk of heat stroke among
extreme heat mitigation products
employees
・Increased risk of quality deterioration
・Reinforcement of production backup
・Increased risk of damage to producsystems
Majortion sites near oceans and rivers
・Expanded sales and market for prod・Supply chain fragmentation
ucts in demand for disaster recovery

Major

Moderate
Major

Moderate

Major

Moderate

Major

Major

Material Flow and Total Emissions Management(1) Reduce Emissions of Plastic Industrial Waste(2) Development of Environment-friendly Products

Our definition is: total waste emissions (waste + exclusive
use materials) ÷ incoming volume = total waste emissions
per unit of production. Using this definition, we achieved
our target of a 1% year-on-year reduction in fiscal 2021.
Of our resin input, 88% is warehoused as finished product, while the remaining 12% is subject to emissions reduction action including recycling.

The environmental impact assessment checklist for thedesign review system used in internal product development
was revised to link it to the environmental considerationsin the government’s Guidelines for the Design of Products
Using Plastics, and the SDGs. We will continue our efforts
to develop products and systems from a 3R + Renewable
perspective.

Production Stage

Usage Phase

Areas already understood by the C.I. Takiron Group
Resin Input(Including Plasticizers and Fillers)

100%

15%
Recycled Resin Input

Nondurable
Goods

Product Warehousing

C.I. TAKIRON Group Production Sites

85%

88%

Processing/Disposal Phase

Areas that need to be understood in the future
Mechanical
RecyclingUse
Recycled Materials (Recycled within Group)

7%
Waste Valuables (Trades at a Price)4%

DurableGoods

ChemicalRecycling

ThermalRecycling

Recycling1%
Production Loss

12%

Simple Incineration

Unutilized(Simple Incineration)(Landfill)Less than 1%

Landfill

TBD

Less than 1%

C.I. TAKIRON Group Integrated Report 2022

42

SocialHuman Resource Strategies
Message from the Executive Officer in Charge of Human Resources

We aim for human resource management that matches the growthof the individual with the direction of the company.
Since fiscal 2019, under the name of Management Commitment on Enriching
Lives, we have been working to build systems and raise awareness for our initiatives to support diverse work styles, support purposeful work, and support better
health. In response to the advances in uses of information technology and new
ways of working that have taken root amid the COVID-19 pandemic, we are working to improve the work environment with an eye toward the post-COVID era.
In order to achieve the goals of our CX2023 Medium-term Management
Plan launched in fiscal 2021, we need to quickly assign the right personnel tothe right positions based on the early establishment of a company-wide human resources strategy. While focusing on strengthening the recruitment andtraining of excellent human resources with taking medium- to long-term healthmanagement into account, we will also flexibly promote the acquisition anddeployment of personnel who can be immediately effective players.
On the other hand, it is essential that each employee take responsibility
for his or her work and develop the skills and mindset it takes to be highly
motivated to get things done. In fiscal 2023, we will establish a talent management system and improve the skills of each individual in accordance witha meticulously designed and systematized human resource development plan.
Also, keeping in mind our stated materiality, Cultivating a Corporate Climate
Supporting Value Creation, we aim to improve employee’s engagement inwork and promote the active participation of women, thereby deepening our
growth from that of the individual to that of the Group.

Noboru Fukushima
Executive Officer
Chief Operating Officer of
the Corporate Administration Div.

Human Resource Strategy System
Management Philosophy
Ideal Human Resources
Investing in Human Capital
Human Resource
Development

P.46

Three Areasof Support

Support for
Diverse Work Styles

Human Resource
Acquisition

P.45

Support for
Purposeful Work

Diversity
P.46

Support for
Better HealthManagement Commitment on Enriching Lives

43

C.I. TAKIRON Group Integrated Report 2022

P.45

Human Resource KPIs
KPI

Item

FY2021
Targets

Corporate
Self-assessment

FY2023
Targets

4.6%

5.0%

16.4%

20.0%

75%

81%

80%

Rate of in-house D&I course participation

100%

100%

100%

Level of understanding regarding D&I identiﬁed
through surveys conducted after training

40%

90%

60%

2.5pt

3.0pt

2.8pt

3.0pt

Ratio of women in leadership positions*

Diversityrelated

FY2021Results

Ratio of female employees incareer-track positions*
Ratio of employees who return towork after leave

Engagement- Employee work engagement score
relatedEmployee loyalty score*Items newly established based on fiscal 2021 results

Initiatives to Evolve the Management Base
Improve Employee Work Engagement
Career formation support for employees

Survey of All Employees Conducted(1) Feedback interview for achievement-based assessment of the prior-year

Aggregate analysis ofengagement scores based on
response results by company/
department(2) Interviews for current fiscal year goal-setting (once a year)(3) Mid-term review interview for current fiscal year goals (once a year)(4) Skill-based assessment interview (once a year)

Safety Activities
at Group
Production Sites→See page 66
for details(5) Career consulting (once a year)

Toward Successwith theMedium-termManagement
Plan CX2023

Human Resource Acquisition[Ideal Human Resources]

Communicate
Human resources capable of actively commu-

Take Initiative and Drive Forward

nicating with everyone inside and outside thecompany and conveying their thoughts
CommitOur Ideal Human Resources concept strongly calls for awareness

Human resources who think for themselves, act

as expressed by “Communicate,” “Commit,” and “Be Proactive.”
We are developing human resources who are responsible for theirwork, who can complete the work without discarding it, and who
can increase their own value of existence by completing their work.

for themselves, and fulfill their responsibilities
Be Proactive
Human resources who can anticipate situations
and actively realize new business and innovations

Toward Improving Employee Work Engagement

We will promote human capital investment by setting WorkEngagement and Loyalty scores as medium-term KPIs for thegrowth of each employee and the productivity of our company.
Medium-term Management Plan and Materiality Management Committee, established in fiscal 2021 under the directcontrol of the Board of Directors, monitors KPI progress monthly, identifies issues based on quantitative measurements,
and works to resolve them through planning and improving measures.
We conduct an annual employee survey to measure how successfully the Management Commitment on Enriching
Lives is spreading and taking root. The results are analyzed using HR technology, leading to the definition of issues and

Tatsuya Uchida

the development of specific actions. In fiscal 2021, we specified “a sense of accomplishment” as our key phrase for efforts

Chief Operating Officer of the Corporate
Administration Div. and Human
Resources and General Affairs Dept.

to improve employee engagement. In fiscal 2022, Management Training for all Managers was implemented as a measure
to improve employee achievement.

C.I. TAKIRON Group Integrated Report 2022

44

SocialManagement Commitment on Enriching Lives
Vitalize Organization/
Improve Productivity
Our company provides a quality
workplace where employees canwork easily in accordance with theManagement Commitment on Enriching Lives, and employees contribute to the lasting growth of thecompany through realization of the
Ideal Human Resources concept.

Enriching Life/
Employee Growth
Quality ofWorkplace

Important Measures for the Management
Commitment on Enriching Lives
C.I. TAKIRON strives to encourage the formulation and use of
programs with these important measures at the core to support
a better life for our employees. The Management Commitment
on Enriching Lives Promotion Committee chaired by the Representative Director and President has been regularly holding meetings and promoting initiatives since fiscal 2020. We set Employee
Work Engagement and Loyalty Scores as Key Performance Indicators (KPI). An annual employee survey also gauges enthusiasm
and employee satisfaction with the company to improve eachmeasure and resolve management and organizational challenges.

Support for
Diverse Work Styles

Support for
Purposeful Work

Support for
Better HealthIn fiscal 2022, C.I. TAKIRON was
certified for the third consecutive year as an outstanding organization for health management
under the Certified Health & Productivity Management Organization Recognition Program 2022.
We will continue to strengthen
our Management Commitment
on Enriching Lives related initiatives with the aim of becoming a
White 500 company.

Investing in
Human Capital
Human Resource Acquisition
With an eye on rapid technological advances in the businessfield and an increasingly uncertain and opaque business environment, we are strengthening the hiring of new graduates inorder to nurture the next generation of human resources froma medium- to long-term perspective. In mid-career hiring, we
acquire personnel with the experience and expertise to become
immediately effective, in order to respond quickly and flexibly tochanges in the business environment. In both new graduate andmid-career hiring, we select personnel in accordance with ourworkforce plan and our Ideal Human Resources Concept.
We also encourage the use of reemployment programs so that
senior personnel can work longer with their wealth of experience.

Strengthening New Graduate Employment
Industrial physicians andpublic health nurse
Management Commitment on
Enriching Lives Promotion Committee

Coordinate(including health and productivity
management)

Itochu Group Health
Insurance Society
Health and Safety Committee
C.I. TAKIRON Labor Union● Telework Implementation Rate
FY202048% to 69%

FY2021

48% to 67%*Scope: Employees working at offices.

● Smoking Rate
FY202029.6%

45FY2021

27.1%

C.I. TAKIRON Group Integrated Report 2022

● Rate of Paid Leave
Taken by Employees
FY2020
FY2021
88.2%
%

89.4

● Specific Health Guidance
Implementation Rate
FY2020
FY2021
32.8%
%

60.2

In 2021, we overhauled our graduate recruitment process.
Employees of various ages and job types participate in company
information sessions and initial screenings (group discussions).
This increases contact with employees other than those in chargeof human resources, and helps students better envision what it
would be like to work at our Company. A competency interview
is introduced in the second round (personal interview). We evaluate students by focusing on their behavioral characteristics, aiming to hire people who are closer to our Ideal Human Resources
Concept. As a follow-up to the job offer, we go on to hold informal social gatherings and pre-employment training sessions.
Throughout the entire selection process, our aim is to increase
the desire to join C.I. TAKIRON by helping people understand ourstrengths and encourage them to empathize with our business,thereby increasing their loyalty once they join us.

Diversity & Inclusion

Human Resource Development /Company-wide Education Policy

We believe that respect for diverse human resources regardlessC.I. TAKIRON has established an education system and provides
a broad range of opportunities to foster the development of theemployees who help enhance the value of the company while also
helping the employees to grow on their own initiative. We have designed education programs according to the career paths of our employees, ranging from training that develops the necessary skills by
occupation and grade to education programs that teach active participation as global human resources, distance learning that supports
self-development, and incentive programs to acquire qualifications.

of physical or non-physical differences as well as understandinga wide range of values and viewpoints vitalizes the organizationand helps employees grow.
At first, we provide in-house training so that each employee
can better understand the concepts of “diversity & inclusion,”
respect the various values and differences of each individual, andcreate a corporate culture in which all people can fully demonstrate their abilities.

Group-wide Education System
Education System
Education Plan
(Human Resource Development Plan)

Ideal Human ResourcesGroup education(including external
training)

Tiered education Developing the skills
Selective education required at each grade
External
training

Specialized skills education(cross-industrial exchange)

Languageeducation

Studying abroad Language education
Domestic education support

Selfdevelopment

Correspondence Support for acquisitionof skills required for work
education
Incentive programs Support for acquisitionof qualifications
to acquire qualifications required for work

● New Female Graduate
Employment Ratio
FY2020
FY2021
30.8%
%

28.6

● Number of Career
Employees HiredFY2020
FY2021Business knowledge acquisition program(e-learning)

TOPIC* The Kurumin Certification is an initiative to recognize companies meeting certain requirements for childcare support that provides work-lifebalance to employees based on the Act on Advancement of measures to
Support Raising Next-Generation Children.

－●●Follow-up training for new employeesNew
employees ●New employee training

Correspondence education
Tiered / basic competency development /specialized competency development (about 170 lectures)●Management simulation training ●New employee mentor training
Junioremployees ●Fourth-year training (MORIUMIUS)●

Mid-level●Training to strengthen problem-solving skills
employees

TOEIC preparation course (e-learning)

Senior ●New senior employee training
employees(Leadership, labor management)●●Multifaceted views ●Department manager training(Management Candidate
Group coaching
Development Program)

Selfdevelopment

English-language enhancement training (group training)

Managers

Language
Education●

Group Training

The Minister of Health, Labor and Welfare recognized C.I. TAKIRON as an organization striving fora high level of childcare support through the 2021
Kurumin Certification.

8100● Number of Employees
Taking Childcare Leave
FY2020
FY202136● Employment Ratio of
Disabled Persons
FY2021
FY2020
2.34%
%

2.12

● Acquisition Ratio of Childcare
Leave for Employees
FY2020
FY2021100%%● Ratio of Employees Who
Return to Work after Leave
FY2020
FY202176%%

32● Ratio of Employees Returningfrom Childcare Leave
FY2020
FY2021
100%%

100● Rate of In-house D&I Course
Participation
FY2020
FY2021－%● Level of Understanding Regarding
D&I Identified through Surveys Conducted after Training
FY2020
FY2021MORIUMIUS Training

C.I. TAKIRON offers training for junior career-track employees at MORIUMIUS, a lodging facility in Ogatsu-cho, Ishinomaki City, Miyagi Prefecture. After the five-day, fournight training camp, participants work in groups, then present their results to the President and Division Chief Operating Officer.
MORIUMIUS is a sustainable training facility that utilizes an abandoned school that isover 90 years old. The purpose of the training program is to think about a recycling-oriented society, how to contribute to the local community, and the meaning of one’s own
work, while interacting with rich nature using all five senses and learning diverse values.

81

－

100

90%

Comment from a Participant in the
Fiscal 2022 Training“My understanding of a recycling-oriented society was deepenedby this hands-on experience with agriculture, forestry, and fishery that
I lack in my day-to-day life. Listening to the stories of people withdiverse values and careers made me think very deeply about how todevelop a vision for my own career.
“The task of trying to imagine C.I. TAKIRON 30 years from now was adifficult one, but it was very informative, since we were able to exchange
opinions from sales,
technology,
development, and otherperspectives. I wasable to meet withmy colleagues, whichwasn’tpossibleduring the COVID-19
pandemic, and I feelthat we have become more united.”

Employees who participated in the training

C.I. TAKIRON Group Integrated Report 2022

46

Governance

Enhance Corporate Governance
Basic Philosophy
C.I. TAKIRON earns the trust of all of its shareholders and other stakeholders by improving the efficiency and transparency of management. We recognize that strengthening corporate governance is a top management priority in achieving sustainable enhancement ofcorporate value.

Basic Policy on Corporate Governance
1. We will strive to rapidly disclose information to ensure
effective equal treatment of shareholders as well as build
an environment to guarantee every shareholder has andcan properly exercise their rights.
2. We will actively cooperate with all C.I. TAKIRON stakeholders in activities to achieve the targets laid out in themedium-term management plan from the stance of connecting success to the profit of every stakeholder.
3. We will disclose the information in accordance with therelevant laws and regulations as well as other information
deemed necessary for stakeholders in a proper and timely manner through mediums that include the corporatewebsite in order to engage in fair and highly transparent
management.
4. We will define the ideal direction for the C.I. TAKIRONGroup internally and externally by setting the medi-

um-term management plan as a core of management
strategies of the entire Group to build a consensus toward
accomplishing the corporate goals. In addition, C.I. TAKIRON has adopted an executive officer system to clearly separate auditing and business execution functions ingovernance while the Board of Directors conducts highly
effective oversight of director and executive officer performance as well as business execution.
5. We will actively engage in a dialogue with shareholders
to reflect their ideas and hopes in management. In addition, C.I. TAKIRON also actively addresses questions fromshareholders and investors, such as establishing opportunities for a dialogue with shareholders and investors,
to bring understanding about its corporate management
strategy and management plan.

Corporate Governance Framework
General Shareholders’ Meeting
Elect, Dismiss
Make decisions and OversightElect, Dismiss
Audit

Board of Directors: 7 Directors (of which 3 outside Directors)
Consult/Report

Proposal of important matters
Reports on business execution

Appoint/
Oversight

Audit & Supervisory Board:
4 Audit & Supervisory Board Members(of which 2 outside Audit & Supervisory
Board Members)

Nomination and Remuneration Committee

Audit

Governance Committee

Elect, Dismiss
Accounting
AuditorAccounting
AuditsPresident

Business Execution
Management Committee

Sustainability Committee
Compliance Committee
Medium-term Management Plan and Materiality Management Committee

Proposal of important mattersregarding business execution

Corporate
Planning Div.

Corporate
Administration Div.

Construction
Materials Div.

Internal Audit Office
Audit

Environmental
Materials Div.

High Functional
Materials Div.

Specialty
Films Div.

Production
Div.

4 Business Segments*For details, see the Corporate Governance Report. https://www.takiron-ci.co.jp/corporate/governance.php

47

C.I. TAKIRON Group Integrated Report 2022

R&D Div.
Recycling Adaptive
Materials Promotion Dept.

DX Strategy
Promotion Dept.

Initiatives to Strengthen Corporate Governance
FY2000 -FY2015 -Organizational
Structure2000 ● Introduction of an executive officer
system2018 ● E stablishment of the Nomination andRemuneration Committee

2020 ● Introduction of the Group Executive Officer System
2021 ● Establishment of the Governance Committee

FY2020 -Directors
Audit & Supervisory Board
Member2000 ● Amendment to the number of directors
in the Articles of Incorporation (no morethan 20 to no more than 12)● Changes in the number of Directors(17 to 9)2011 ● Appointment of an independent outside
director (1)2018 ● Increase in the number of independent
outside directors (1 to 2)

2020 ● Increase in the number of independent outside directors(from 2 to 3, comprising more than 1/3)
● Increase in the number of independent outside Audit & Supervisory
Board Members (0 to 2)● Diversity of the Board of Directors and Audit & Supervisory Board
Members (Appointed one female director and one female Audit &Supervisory Board Member)2017 ● Implementation of an effectivenessevaluation for the Board of Directors (conducted every year since implementation)

EffectivenessEvaluation

Nomination
andRemuneration

Other2018 ● Introduction of a Stock Remuneration
System (Share Delivery Trust)2020 ● A ppointment of an Independent Outside Director to Chair the Nomination and Remuneration Committee
2021 ● R evision of Existing Stock Remuneration System (Share Delivery Trust)and Introduction of a Performance-Linked Stock Remuneration System● Introduction of a Restricted Stock Remuneration System● Disclosure of the Skills Matrix for Directors and Corporate Auditors

2019 ● S trengthening Systems for Dialogue with
Shareholders (Investors) (established a
new department specializing in IR)

2021 ● E nhancement of Feedback to the Board of Directors on IR activities

Composition of the Board of Directors and Audit & Supervisory Board
Board ofDirectors

Independent
Outside Directors

43

%

(3)

Audit &
Supervisory
Board

Male

4 Audit & Supervisory Board Members

Nomination and Remuneration Committee
C.I. TAKIRON set up a Nomination and Remuneration Committee as an advisory body to the Board of Directors with majorityof the members made up of independent Outside Directors, inorder to heighten the independence, objectivity and transparencyof the Board of Directors in the nomination of directors, Audit &Supervisory Board Members and executive officers as well as in
the remuneration of directors and executive officers.
Results
The committee met 10 times in accordance with the annual plan(from July 2021 to June 2022) formulated after the election of
officers in June 2021.
Main Committee Agenda
1. Election criteria for director, Audit & Supervisory Board Members, and executive officer candidates
2. Examination of independent election proposals for directors,
Audit & Supervisory Board Members, and executive officers
3. Matters related to the appointment and dismissal of representative and executive directors
4. Remuneration system for directors and executive officers
5. Examination of processes to determine remuneration for directors and executive officers
Composition of the Committee

Kazuya Saito Director President
Independent Outside Directors

Male

Female(2)

7 Directors

Members Kenichi Hatano

50%

FemaleCommittee Yoshiko Kosaka
Independent Outside Directors
Chairperson

Independent
Outside Audit & Supervisory
Board Members

Independent
Outside Directors

67%

Governance Committee
We set up a Governance Committee made up of a majority of
independent Outside Directors as members, including its chairperson, as an advisory body to the Board of Directors in order toenhance the level of our corporate governance.
Results
The Governance Committee met 9 times in accordance with theannual plan (from August 2021 to June 2022) formulated uponits establishment.
Main Committee Agenda
1. Important governance matters
2. Effectiveness Evaluation of the Board of Directors
3. Material transactions or actions that conflict with the interestsof the controlling shareholder and minority shareholders**Deliberations only involve committee members with autonomy, including independent Outside Directors.

Composition of the Committee
Committee Kenichi Hatano
Independent Outside Directors
Chairperson
Kazuya Saito Director President
Yoshiko Kosaka
Independent Outside Directors

Members Takeshi Kaide

Independent Outside Directors

Takashi Araki
Independent Outside Audit & Supervisory Board Members

Independent
Outside Directors

60

%

(3)

5 Members(2)

3 Members
C.I. TAKIRON Group Integrated Report 2022

48

GovernanceInitiatives to Improve Effectiveness
Effectiveness Evaluation of the Board of Directors
C.I. TAKIRON analyzes and evaluates the effectiveness of the Board of Directors every year and strives to address challenges discovered
as a result for the purpose of improving Board of Directors functions. The effectiveness evaluation conducted in fiscal 2021 is shown below.

Analysis/evaluation methods
Governance Committee discussionof the evaluation process

Conduct survey for self-assessment by directors
and Audit & Supervisory Board Members.

Opinion exchange bydirectors and Audit &Supervisory Board Members

Items Improved in FY2021● Enhancement of discussions from a medium- to longterm perspective:In April 2021, the Medium-term Management Plan and Materiality Management Committee began operating as a mechanism to implement systematic, ongoing deliberations.
● Strengthening of the system to improve governance:
Effective August 1, 2021, C.I. TAKIRON established the Governance Committee to deliberate important governance-related matters and serve as an advisory body to the Board of
Directors.
● Broader diversity on the Board of Directors:
We identified the skills that we believe are necessary for
our Board of Directors in light of our medium- to long-term
management strategy, and then created a skills matrix togain an understanding of the current situation.
● Building officer remuneration systems that are consistent with the management strategy:
We revised the existing stock remuneration system (sharedelivery trust) and introduced a performance-linked stock
remuneration system, as well as a restricted stock remuneration system at the June 2021 General Shareholders’ Meeting
to raise awareness of Directors to contribute to improving
the medium- to long-term performance and dramatically enhancing corporate value.
● Feedback from dialogue with shareholders (investors):
We reported to the Board of Directors on the status of IR activities and opinions received from shareholders and investors.

Governance Committee discussionof evaluation results

Evaluation by the
Board of Directors

FY2021 Effectiveness Evaluation and Future Measures● Evaluation results:
C.I. TAKIRON received an overall positive evaluation for
its measures to strengthen the governance structure andinvigorate deliberations by the Board of Directors, which was
determined to be functioning appropriately and ensuring
effectiveness.
We will promote measures to improve the five items below aspriority issues in an effort to further enhance the effectivenessof the Board of Directors.
● Priority Issues:(1) Expansion of discussions from a medium- to long-term
perspective(2) Compilation of basic ideas for deepening governance(3) Expansion of management support programs(4) Strengthening measures on sustainability issues(5) Enhancement of dialogue with shareholders and investors

Executive Officer Training Policy
C.I. TAKIRON operates under the basic policy of supporting
the development of directors and Audit & Supervisory Board
Members necessary to properly fulfill their roles and responsibilities. We conduct the training below for directors and Audit &Supervisory Board Members. When Directors and Audit & Supervisory Board Members are newly appointed, training is provided
on matters including compliance and corporate governance. In
addition, when new Outside Directors and Outside Audit & Supervisory Board Members are appointed, they are briefed on ourbusiness and other matters.
We provide training opportunities on an ad hoc basis so that
Directors and Audit & Supervisory Board Members can continue
to acquire and study the knowledge necessary to fulfill their responsibilities after assuming office.

We build an environment to nurture awareness and skill froman early stage even in executive officers and other management
who are future director and Audit & Supervisory Board Members
candidates, such as mandatory participation in external training
about matters necessary to corporate management.

Lectures and Other Events on Specific Themes (FY2021)
Corporate culture reforms to achieve theDept. Manager and above
Medium-term Management Plan
Decarbonized society and climate change Dept. Manager and above
Risk management: critical risk
identification*For details, see the Corporate Governance Report. https://www.takiron-ci.co.jp/corporate/governance.php

49

C.I. TAKIRON Group Integrated Report 2022

Management Committee
members

Executive Remuneration
The remuneration systems for directors and other officers (directors and executive officers excluding non-executive directors) consists ofthe basic polices below, acting as a guide to fulfill the duties required of C.I. TAKIRON in the management plans and policies.

Basic Policy
1. We shall provide remuneration linked to medium- to long-term
corporate value to realize sustainable growth.
2. We shall encourage all to independently and actively take onchallenges without fearing failure.

3. We shall assess our competitors and set standards thought appropriate for C.I. TAKIRON in recruiting and retaining outstanding humanresources.
4. We shall ensure objectivity and transparency through deliberations
at Nomination and Remuneration Committee, which is made up ofa majority and chaired by outside directors.

Framework of Executive Remuneration
Director and other executive remuneration consist of fixed compensation, short-term incentives (bonuses) as performance-linked remuneration, and medium- to long-term incentives (stock remuneration) as non-monetary compensation. The estimated ratio of the various
types of remuneration if all of the KPI are achieved is 61% for fixed compensation, 28% for short-term incentives (bonuses), and 11% formedium- to long-term incentives (stock remuneration)

Remuneration Composition Ratio
Monetary

Fixed Remuneration: Approx.

Stock

61

%

Bonuses: Approx.

28%

Short-term
Incentives

Fixed Remuneration
C.I. TAKIRON determines fixed remuneration as monthly compensation basedon the role assigned according to the performance and skills of executive officers aswell as an evaluation of the magnitude ofcontributions to management in that role.

Short-term Incentives (Bonuses)

Restricted Stock
Share Delivery Remuneration:
Approx.
Trust: Approx.

5.5 5.5%%

Medium- to Long-term
Incentives

Medium- to Long-term Incentives (Stock Remuneration)

Bonuses should raise awareness about improving
business performance each fiscal year and must reflect
the level of achievements related to annual consolidated operating profit and net income. C.I. TAKIRON also
reflects qualitative and quantitative evaluations of each
executive officer in the calculation of bonuses to pay at
a certain time each year.

Medium- to long-term incentives consist of a share delivery trust (performance-linked remuneration) and restricted stock remuneration.
In regard to the share delivery trust, converts and pays shares in proportion to the number of points assigned to each executive officer according
to the level of success in accomplishing medium-term management plans
is converted and paid at the time of retirement. Restricted stock is paid in
advance at a certain period each year to enhance corporate value and sharevalues with shareholders.

Calculation Formula for Performance-linked Compensation
Bonuses =(standard amount × performance achievement rate*) +(standard amount × individual evaluation coefficient)* Consolidated operating profit and consolidated net income

Stock remuneration (Share Delivery Trust) =basic ownership points by position ×

Medium-term Management Plan achievement rate

Protection of Minority Shareholders
In order to protect minority shareholders, C.I. TAKIRON determines transactions with parent ITOCHU Corporation in a fair andappropriate manner based on reasonable judgments, paying attention to the necessity of each transaction and the fact that the termsof each transaction do not differ significantly from those of ordinarytransactions with third parties. Purchase transactions for raw materials and other items are determined based on market prices.
In addition, we strictly manage all transactions in accordancewith the various rules and regulations established in advance.
In particular, for important transactions with the parent company, we confirm the appropriateness and reasonableness of suchtransactions after consulting and receiving a report from the Governance Committee. The Board of Directors believes that the appropriateness and rationality of the transactions are ensured andthat the transactions are not detrimental to our interests.
The following is an excerpt from the ITOCHU’s Policy on the
Governance of its Listed Subsidiaries of ITOCHU Corporation.

ITOCHU Corporation
ITOCHU’s Policy on the Governance of Its Listed Subsidiaries(excerpt)“ITOCHU respects the autonomy of listed subsidiaries and prohibits
any acts that contradict the principle of shareholder equality. In particular, with the recognition that there is a potential conflict of interest between ITOCHU and the minority shareholders of these listed
subsidiaries and in order to secure the independent decision-makingof these listed subsidiaries, we request these listed subsidiaries to set
up a governance structure under which functions of their independent Outside Directors are well assured.”

C.I. TAKIRON Group Integrated Report 202250

GovernanceCompliance Risk Management
The C.I. TAKIRON Group is firmly maintaining and strengthening corporate compliance systems, and promoting the optimal operation of risk management systems to provide sound andhighly transparent management.

Compliance
Basic Philosophy

Compliance System

C.I. TAKIRON Group is deeply aware of its corporate social responsibilities as a member of society to conduct corporate activities. Our Group complies thoroughly with the relevant laws andregulations as well as with the articles of incorporation for eachcompany in addition to defining the C.I. TAKIRON Group Corporate Code of Conduct for the purpose of taking action deemedsuitable by social ethics.
Also, the C.I. TAKIRON Group Compliance Program has been
established for the purposes of improving and strengthening thecompliance system for following the C.I. TAKIRON Group Corporate Code of Conduct. It defines the following four items asa basic policy.
In anticipation of revisions to the Whistleblower Protection Act,
we have revised the program and established a system adapted
to the revised law.

Basic Policy
1. Create a sound organizational culture and climate
2. Establish and maintain a proper system
3. Maintain a high level of awareness about compliance4. Fair and impartial compliance

Main Compliance Results for FY2021
Violationsof laws andC.I. TAKIRON
and Domestic
Companies
ThereAffiliate
are no such
violations inregulations in the socioFY2021.
economic sector
Violationsof environmental
Chief Operating
Audit &
laws
andOfficerof regulations
theThere are no such violations
inBusiness
FY2021.
Operating theAttorneys at Law

Supervisory
Legal Compliance
Numberof Internal
ReportBoard
Member
Department
55(External)

Submissions

Hotline Service(External)

C.I. TAKIRON Board of Directors
Chief Compliance Officer
President of C.I. Takiron
Compliance Committee

Compliance Subcommittees

Person in Charge of C.I.
TAKIRON Compliance

Persons in Charge ofCompliance atAffiliated Companies

Internal Reporting System (Hotline)
C.I. TAKIRON and Domestic Affiliate Companies

Chief Operating
Officer of theLegal ComplianceDepartment

Audit &
Supervisory
Board Member

Attorneys at Law(External)

Business
Operating the
Hotline Service(External)

Overseas Affiliate Companies

Chief Operating
Officer of the Legal
ComplianceDepartment

Business Operating
the Hotline Service(External)

Main Activity Results for FY2021
Preparation of systems and frameworks by persons in charge of compliance after raising awareness about the
Preparation of systems Compliance Commitment in staff
and frameworks
In anticipation of revisions to the Whistleblower Protection Act, revision of the compliance program and preparation of a manual for employees to ensure that all are aware of the revised law
Compliance Training for all officers and employees (either by webinar or by viewing recorded materials)
Harassment e-learning for all officers and employees
Education/
Publication of guidebook on the Internal Reporting System (Hotline) and dissemination of its content among all
Enlightenment
officers and employees
Dissemination of compliance-related information (twice) among all officers and employees
Training for persons in charge of compliance (webinar)
Compliance awareness-raising among all officers and employees
SurveysYear-end monitoring review questionnaire for all persons in charge of compliance51

C.I. TAKIRON Group Integrated Report 2022

Risk Management
Risk Management System
We have put in place a risk management system and formulated Risk Management Regulations for the purpose of reducing and preventing losses as well as enhancing corporate value
through the organizational management of risk throughout theGroup.
The Corporate Planning Department acts as the risk management secretariat and operates the risk management process eachfiscal year by placing a risk manager at C.I. TAKIRON as well as
each affiliate company.

Person responsible for risk
management

C.I. TAKIRON: Chief Operating Officer of each division
Affiliate Companies: President of each company

Departments
supervising risk
assessment

Each C.I. TAKIRON business planning department,
production planning department, purchasing
department, finance and accounting department,
quality assurance department, legal affairs department, intellectual property department, businesssupport department, human resources and generalaffairs department, and other departments designated by the risk management secretariat

Risk
Management

Secretariat C.I. TAKIRON Corporate Planning
Department

Departments
Each department of C.I. TAKIRON designated by thehandling the risk risk management secretariat and affiliate companies

Risk Management Operations
C.I. TAKIRON has a system to address the intrinsic risks of theGroup through ongoing reduction efforts in accordance withthe risk management regulations. The Management Committee
determines measures against risk through risk identification andevaluation results for the entire Group.
The risk management secretariat operates risk management
each fiscal year based on the selection and handling processes forcritical risks defined as the following.

Selection and Handling Process of Critical Risks
Risk Management Process (Target: C.I. TAKIRON Group)
Identification and Evaluation of Risk
Conduct Risk Surveys

Analyze/⇒ Evaluate
Risk ⇒

Identify Critical
Risks

Review

MeasuresManagement
MeasuresReport to⇒ Determine⇒ Gain Approval⇒ Execute⇒ Management
Against Risks
Against Risks(1) Surveys for risk managers (generally once every three
years)
Assess the level of impact and likelihood based on a common
list of risks created by the risk management secretariat according to the social landscape and risk examples.
(2) Analysis/evaluation
Collect and analyze survey results and other information
about risk via the risk management secretariat and select critical risk candidates.
(3) Identification of critical risks
Identify critical risks (corporate risks or operational risks) at
management workshops made up of C.I. TAKIRON executive
officers.

(4) Formulation/approval of measures against risks
Departments supervising the handling of risks plan and propose measures against risks for the next fiscal year throughdiscussions with the risk management secretariat, and thenthe risk management secretariat seeks approval from the C.I.
TAKIRON Management Committee.
(5) Execution of measures against risks
Departments handling the risk handle risks based on the measures against risks. For corporate risks, departments supervising risk assessment monitor the progress of those measuresagainst risks.
(6) Review of the results from measures against risks
The risk management secretariat reports to the C.I. TAKIRONManagement Conference based on the results of the measures against risks for the current fiscal year.

FY2022 Selection of Critical Risk Management Items
Risk Management Items

Risk Category

Purchasing Risks

Corporate

Quality Assurance
Risks

Operational

Plant disaster risk

Operational

Human resources
risk

Operational

Supervising
Department

Risk Items

Assessment
Department(1) Procurement risk due to dependence on specific suppliers that do not have BCP measures in place
Corporate Planning
Department(2) Risk of discontinuation of production of key businessproducts due to poor raw material procurement(1) Risk of loss of social credibility and termination oftransactions due to non-performance of external quality-related contracts (third-party certifications, customQuality Assurance－
er-submitted documents).
Department(2) Risk of serious product accidents and recalls due to
product defects(1) Occupational accident risk
Production－
Planning Dept. (2) Plant fire risk
Human Resourcesand General Af- (1) Risk of labor shortages in Group companies－
fairs Department
Purchasing
Department

C.I. TAKIRON Group Integrated Report 2022

52

GovernanceDirectors, Audit & Supervisory Board Members,
and Executive Officers (as of June 28, 2022)
Directors
Representative Director President

Representative Director Executive Vice President

Kazuya Saito

Yuji Fukuda

1981 Joined ITOCHU Corporation2014 Joined TAKIRON
2020 Representative Director President of
C.I. TAKIRON (current position)

1979 Joined ITOCHU Corporation
2022 Representative Director Executive
Vice President of C.I. TAKIRON(current position)

Director

Kenichi Hatano Outside Independent

Director

1966 Joined Sumitomo Chemical Industry
Company Limited (current Sumitomo
Chemical)2018 Director of C.I. TAKIRON (current
position)

Yoshiko KosakaOutside Independent

2003 Registered as attorney at law
2016 Joined Irokawa Law Office (currently
Irokawa Legal Professional
Corporation) (current position)2020 Director of C.I. TAKIRON (current
position)
2022 Outside Audit & Supervisory Board
Member of Kanemitsu Corporation(current position)

Audit & Supervisory Board Members
Audit & Supervisory Board Member

Audit & Supervisory Board Member

Toshiro Okajima

Masamichi Kanatomi

1988 Joined TAKIRON
2020 Audit & Supervisory Board Memberof C.I. TAKIRON (current position)

1990 Joined ITOCHU Corporation
2022 CFO of the Energy & Chemicals
Company, ITOCHU Corporation(current position)
2022 Audit & Supervisory Board Memberof C.I. TAKIRON (current position)

Skills Matrix for Directors and Audit & Supervisory Board Members

Directors

SkillsCorporate Environment/
Finance/TalentLegal/
Management
Social
Accounting Development GovernanceKazuya Saito●

Yuji Fukuda●

Takahisa Miyake●

Akihiro Ueda●

Kenichi Hatano Outside Independent●●●

Audit & Supervisory Board Members

●

●

●

Masako Osuna Outside Independent●

Takashi Araki Outside Independent

●

●

●
●

●
●

●
●

●

Masamichi Kanatomi

C.I. TAKIRON Group Integrated Report 2022

●

●

●
●

●

●

●
●

●
●

●

●
●

●

*For details, see the Corporate Governance Report. https://www.takiron-ci.co.jp/corporate/governance.php

53

●

●

Toshiro Okajima

Global●●●Technology,
R&D

●

●

Yoshiko Kosaka Outside Independent
Takeshi Kaide Outside Independent●

Sales/
Marketing●Director Senior Managing Executive Officer
Chief Operating Officer of the Environmental
Materials Div.

Director Senior Managing Executive Officer
Chief Operating Officer of the Construction
Materials Div.

Takahisa Miyake

Akihiro Ueda

1984 Joined TAKIRON
2017 Director Senior Managing Executive
Officer of C.I. TAKIRON (current
position)1982 Joined ITOCHU Corporation
2019 Director Senior Managing Executive
Officer of C.I. TAKIRON (current
position)

DirectorTakeshi Kaide

Outside Independent

1979 Joined Mitsui Petrochemical Industries, Ltd. (currently Mitsui Chemicals, Inc.)
2022 Director of C.I. TAKIRON (current
position)

Audit & Supervisory Board Member
Outside Independent
Masako Osuna

Audit & Supervisory Board Member
Outside Independent
Takashi Araki

1979 Joined JETRO (Japan External Trade Organization)2017 Professor, Industry-University Collaboration,
Organization for Research Support, Kanazawa
Institute of Technology (current position)
2019 Director of Hibiya Engineering, Ltd. (current
position)2020 Audit & Supervisory Board Member of C.I.
TAKIRON (current position)
2022 Outside Director of EIZO Corporation[Audit & Supervisory Committee Member](current position)

1996 Joined Aoyama Audit Corporation (currently
PwC Aarata LLC)
1997 Registered as Certified Public Accountant
2013 Head of Takashi Araki Accounting Office(current position)2014 Corporate Auditor (Outside) of Nippon Ski Resort Development, Co., Ltd. (current position)2014 Representative Director of Transaction Support
Co., Ltd. (current position)2015 Registered as licensed tax accountant
2015 Head of Takashi Araki Tax Accounting Office(current position)2020 Audit & Supervisory Board Member of C.I.
TAKIRON (current position)

Nomination andRemuneration
Committee

GovernanceCommittee〇〇

FY2021 Board of
FY2021 Audit &Directors Meetings Supervisory Board
Attended
Meetings Attended

17/17

－

－

－

17/17

－

17/17

－

〇

◎Committee Chairperson

17/17

－

◎Committee Chairperson

〇

17/17

－

〇

－

－

17/17

19/19

－

－

〇

15/17

19/19

17/17

19/19

Managing Executive Officers
Chief Operating Officer of the R&D Div.

Hideharu Iwasaki

Chief Operating Officer of the Corporate Planning Div.
and Recycling Adaptive Materials Promotion Supervisor

Toshio Tamaki

Chief Operating Officer of the Production Div.

Hironori Kikuchi
Hidehiro Shima
Hiroji Kimura

Chief Operating Officer of the Specialty Films Div.
General Manger of the Housing Materials Dept.

Executive Officer
General Manager of the Business Support Dept.

Tsutoshi Miki

General Manger of the Flooring and Decorative
Materials Dept.

Kenji Matsui

Deputy Chief Operating Officer of the Production Div.
General Manger of the Tokyo Plant

Kenji Watanabe
Yukio Hiraiwa

DX Strategy Promotion Supervisor and General
Manager of the DX Strategy Promotion Dept.

Ryojiro Ogawa

General Manager of the R&D Dept.

Akihiko Shiraishi
Takashi Yamasaki
Kazuhiro Kinpara
Tetsuya Tsukaguchi
Noboru Fukushima

Chief Operating Officer of the High Functional Materials Div.
General Manager of the Corporate Planning Dept.
General Manager of the High Functional Materials Dept.
Chief Operating Officer of the Corporate Administration Div.

C.I. TAKIRON Group Integrated Report 2022

54

GovernanceSpecial Feature Governance Roundtable

Listening to Our Governance Committee Members

What role should the Governance Committee
play in enhancing corporate value?

Takashi Araki

Yoshiko Kosaka

Kenichi Hatano

Takeshi Kaide

Independent Outside Audit &Supervisory Board Member

Independent Outside Director

Independent Outside Director

Independent Outside Director

The revised Corporate Governance Code (CGC), which went into effect in June 2021, calls forthe establishment of an agile risk management system that takes into account the rapidlychanging business environment and ensures a higher level of corporate governance that is
considerate of stakeholder demands.
In August 2021, C.I. TAKIRON established a Governance Committee to advise the Boardof Directors. By deliberating on important governance matters and reporting back to theBoard of Directors, the Governance Committee ensures the transparency and soundness ofmanagement and further enhances governance to increase corporate value.
Four Outside Officers who are members of the Governance Committee for fiscal 2022 and2023 participated in this roundtable discussion on the role of the committee and its future
prospects.
Members of the Governance Committee
Committee
Chairperson

Independent Outside Director

Agenda items for fiscal 2021 and 2022
・Conflict of interest (including system design for deliberation)
Kenichi Hatano

・Items for the Revised CGC (Portfolio)
・Effectiveness Evaluation of Board of Directors (evaluation process and results)

Director President
Independent Outside Director
Members

55

Kazuya Saito
Yoshiko Kosaka

Independent Outside Director
Takeshi Kaide (new election)
Independent Outside Audit & Supervisory Board Member
Takashi Araki (new election)

C.I. TAKIRON Group Integrated Report 2022

・Rearrangement of the Nomination and Remuneration Committee’s organizational design
・Review of Governance Committee activities for fiscal 2021 and 2022
・Annual Plan for fiscal 2022 and 2023

Q1. It has been one year since the Governance Committee was established.
What impressions do you have as you look back on your first year ofactivities?
Hatano: The Governance Committee convened seven times in
its first year of establishment (August 2021 to June 2022).
Discussions focused mainly on the revised Corporate
Gover nance Code, including matters such as improving
management transparency and strengthening the auditing
function of the Board of Directors. In particular, much time wasspent on deliberating potential conflicts of interest among
controlling and minority shareholders, and on evaluating theeffectiveness of the Board of Directors. As a result, we had tocarry over some of our initial plan to the next fiscal year, but for
the first year, I believe we were still able to operate andimplement the program in a generally systematic and effective
manner.
The committee engaged in lively discussions that included
objective and professional perspectives from outside thecompany, three of its four members being independent Outside
Directors. We believe that we were able to have a very effective
discussion with President Saito, with input from the executive

side. Director Kaide and Audit & Supervisory Board Member
Araki will join the committee this fiscal year, bringing the total
number of committee members to five. With this more fullyenhanced structure, we plan to expand our discussions frommedium- and long-term perspectives, including corporate
governance guidelines and business portfolios, which areimportant issues for the current fiscal year.
Kosaka: I have been a member of the Governance Committee
since last year. We established this committee with theambitious idea of using it as a deliberative body that discusses
our vision and strategy in ways that lead to increased corporate
value, rather than a passive approach strictly limited to the
mandates of the Corporate Governance Code. Because of oursmall membership, we are able to focus on enriching thediscussions, and everyone actively expresses their candid
opinions. Opinions are sometimes divided, but we are able todeepen discussions and come up with countermeasures, so I
think we are functioning in a well-balanced manner.

Q2. What kind of discussions have you engaged in regarding conflict of interest,
and what results have they produced?
Kosaka: We devoted a lot of time to deliberating conflict ofinterest between controlling and minority shareholders because
this is a requirement of the revised Corporate Governance Code,and because it is one of the reasons the Governance Committee
was established. As a result, we were able to identify a vast
number of contracts and transactions with the parent ITOCHU
Group, and after identifying trends, we were able to create newrules for deliberation. We appreciate the fact that the committee
has established deliberation criteria through which we can
explain to all stakeholders, including minority shareholders, thata given transaction has been determined to be fair and soundthrough the multi-perspective discussions involved in thed e l i b e r a t i o n p ro c e s s f o r n e w t r a n s a c t i o n s , a n d i n t h eformulation of items for deliberation. In examining transaction
data, we received enormous cooperation from everyone in thesecretariat. We are also very pleased with the way the board
members and the corporate department were able to work
together to make this happen.
Hatano: That really is true. I am grateful to the secretariat for
the enormous task they accomplished. In order to create
standards that can be applied on an ongoing basis, we started
by organizing all transactions with the ITOCHU Group by
category, and establishing rules to narrow down the scope ofmatters subject to deliberation. Specifically, these matters
include the percentage increase in the ITOCHU Group’s shareassociated with each transaction under consideration, and theminimum transaction value. We were also able to confirm thev a l i d i t y o f t h e t r a n s a c t i o n p r i c e t h ro u g h q u i t e s p e c i f i c
verification, such as by comparing price quotes with those ofother companies. At the same time, we have found that the
ITOCHU Group provides us with useful support for the Group’s
stable business operations. This includes information on

PICK UP | Conflict of Interest Between Controlling and Minority Shareholders
The Corporate Governance Code requires listed companies withshareholders with a majority of voting shares (controlling shareholders)to ensure a highly transparent governance system and protect theinterests of minority shareholders. Supplementary Principles 4-8 (3)states that “a special committee composed of independent persons,
including independent Outside Directors, should be established,” witha strong expectation that independent Directors will fulfill theirfunctions.

C.I. TAKIRON Group Integrated Report 2022

56

GovernanceSpecial Feature Governance Roundtableprocurement of raw materials from overseas and theoutsourcing of certain operations. We believe that continued
appropriate collaboration will lead to an increase in corporate
value for both parties.
Based on the rules thus established and the informationcollected, we identified and scrutinized the transactions to be
discussed, and found no unreasonable points from thep e r s p e c t i v e o f p ro t e c t i n g t h e i n t e re s t s o f o u r m i n o r i t yshareholders, and confirmed that there were no problems withthe transactions. The rules will be reviewed for appropriatenessas we gain experience in deliberations, and will be revised as
appropriate.
Kaide: I have thought long and hard about working relationships
with parent companies in my recent career. Before taking on mycurrent position as an Outside Director in June of this year, I was

engaged in the management of a core operating firm in the
Mitsui Chemicals Group, and one of my major themes was how
to build a relationship of co-existence and co-prosperity with theparent. The solution we came up with was that the role of theoperating company is to contribute to the Group’s search for new
business and to ensure a return to the parent company bygenerating a steady profit. In addition, it is critical to take fulladvantage of the parent company’s management resources, andto eagerly link these to the operating company’s own growth.
The greatest strength of the ITOCHU Group is its global
network. I expect that it will be a very strong supporter of ours
a s w e s t re n g t h e n o u r o v e r s e a s g ro w t h b u s i n e s s . I n t h e
manufacture and sale of environment-friendly products using
bioplastics, for instance, they could collaborate in the
procurement of raw materials and the expansion of sales
channels. I believe that we also need to be smart enough totake advantage of our parent company to ensure that these
efforts will result in a return for our minority shareholders.
Araki: Last fiscal year, I was on the Board of Directors, on theside receiving the reports. There are no general guidelines
regarding the investigation of ongoing transactions with
controlling shareholders. It must have been a very arduous taskbuilding this from the ground up, but your reporting was very
organized and clear. I think we have a great indicator for future
deliberations.
Quantitative evaluation is essential for making accurate
management decisions. My specialty, accounting, is one of thetools of governance in that it serves to coordinate the interestsof stakeholders through figures. I have been participating as acommittee member since fiscal 2022, and I would like to help
develop a system to objectively determine whether the merits ofparent-subsidiary listings are being fully utilized. I hope to do
this by making use of my career of working with fairness that is
not biased toward any particular stakeholder and valuation thatquantitatively assesses corporate value.

PICK UP | Comments from the Secretariat (Sustainability Strategy Department)
Under the direction of the Governance Committee, the verification process began by extracting all transaction records with the ITOCHU Group during theprevious year from the Finance & Accounting Department, Purchasing Department, and other related departments. I am glad that the analysis of basic
information and categorization contributed to the smooth deliberation of conflict of interest in the committee. Now that you have specified clear criteria, fromthe second year, we have a system in place to check efficiently and with a high degree of accuracy.
The department’s mission is also to deepen communication with external parties on all sustainability-related topics, including governance and theenvironment. We will continue to promote high-quality dialogue with our stakeholders, taking suggestions from the committee members.

Q3. W hat are the results of your efforts to evaluate the effectiveness of the Boardof Directors, and what future challenges do we face?
Hatano: In the past, the results of self-assessment questionnaires
by all Directors and Audit & Supervisory Board Members werediscussed by the Board of Directors and utilized in the next year’s
initiatives, but the PDCA cycle was not fully implemented. We
have therefore introduced a process whereby after the Board of
Directors discusses the results of the survey, the Governance

57

C.I. TAKIRON Group Integrated Report 2022

Committee summarizes the year’s activities and identifies priority
issues for the following year, then reports back to the Board of
Directors on the results of the discussion. We feel that this has
made future issues clearer and improved the effectivenessassessment process.

Kosaka: That’s right. One of the issues highlighted was theneed to expand discussion of medium- and long-term
perspectives. While management issues for sustainable growth
are of course discussed at board meetings, we believe it isnecessary to look at business models and business portfolios
from an objective, bird’s-eye, and long-term perspective, and to
propose specific issues that are more in-depth. Together withyou, we were able to confirm that our policy is to have theGovernance Committee take on that role in the future.
As a start, the Governance Committee decided to develop
Corporate Governance Guidelines. Each one of the agenda
items for the revised Corporate Governance Code has a lot of
depth, so I think that redefining them in light of our company’s
current situation is very meaningful.
Hatano: Ms. Kosaka is right about the need for discussion froma medium- to long-term perspective. The business environmentis undergoing drastic change, and there are a number of issues
that will have a significant impact on our operations, such as
decarbonization and the waste plastics problem. Whileaddressing these issues, I believe we need to discuss from a
broad perspective how to optimize and upgrade our businessportfolio and improve our corporate value over the medium tolong term.
In addition, in order to achieve sustainable growth for theentire Group, including its subsidiaries, it is necessary toaccelerate aggressive management measures such as adding
high value to existing businesses and creating new businesses.
With regard to reorganization of the Group’s management,
since the business integration, we have been working toliquidate unprofitable businesses while reorganizing andintegrating Group companies. It is vital that we continue toflexibly reorganize and integrate Group companies to improve
management efficiency while developing a vision for new value
creation and putting it into action.
Kaide: The other day, as I was shown the report of the Mediumterm Management Plan and Materiality Management
Committee, I found that the number of unprofitable projects infiscal 2021 is a bit wide of the fiscal 2023 target, which was
zero. Particularly in Japan, exiting a business is not a smoothprocess, and it takes time, so we would like to carefully checkthe monitoring process to see how each business condition isevaluated and how they are trying to improve it, and theconditions under which they would withdraw from it.
In addition, to achieve greater growth than organic growth,
the company will also look at collaborations with othercompanies and mergers and acquisitions. The GovernanceCommittee will be prepared to function robustly in examining
potential risks in the event of an M&A with the ITOCHU Group.
I hope that the executive side will be proactive in making
proposals, and conversely, I think it would be good for us toencourage them to do so.
Araki: Having been involved in the management of C.I.
TAKIRON for two years, my honest impression is that the

PICK UP | Effectiveness Evaluation of the Board of Directors
Effectiveness of the Board of Directors is evaluated each year in orderto improve its function. Since fiscal 2021, the Governance Committee isdeliberating the evaluation process and the results to strengthen
structure of promoting measures for priority issues concerning
governance.

foundations of the Group’s management are well in place. We
have established a consolidated budget management method
and set up appropriate regulation of authority, including ataffiliates and subsidiaries. You have brought up redevelopmentof Group management as an issue, which I think comes down
to how we can nurture budding growth with an eye to our
future earnings portfolio. I believe we should increase theresolution of this discussion. How much risk and investment are
you willing to tolerate based on future growth potential,
assuming that the current profit base is secured? Personally, I
would like to deepen this discussion with you all, drawing on
my own experience and knowledge accumulated as a financial
advisor involved in M&A and corporate restructuring, including
PMI support.

C.I. TAKIRON Group Integrated Report 2022

58

GovernanceSpecial Feature Governance Roundtable

Q4. What are your thoughts on strengthening human capital for medium- to longterm growth?
Kosaka: We are aware of this as a topic we should focus moreon in the future. Although we are committed to implementing
the Management Commitment on Enriching Lives for all
employees, the current employee work engagement scores andemployee loyalty scores have not reached the target values. It isessential that we properly analyze the causes for this in order tostrengthen our human capital. This is not just about numbers. It
is an issue directly tied to the promotion of active participationof women, and the securing of excellent human resources in the
future, which is naturally the most important factor that
determines sustainable growth. The department in charge ofhuman resources is also taking various steps, such as conducting
multifaceted observations, and we will closely monitor the
results.
Araki: I also see expansion of our human resource base as an
unavoidable challenge in ensuring sustainability. In accomplishingthat, I think it is indisputable that we need to take steps toencourage greater participation by women.
I once had the opportunity to visit the Okayama Plant during
the lingering heat of summer, and saw more active participation
by women than I had ever imagined amidst the heat of the film
production facilities. While it is important to achieve targets forquantitative indicators such as the ratio of female managers, I
feel that it is also important to make efforts to support womenin demonstrating their abilities at manufacturing sites.
Furthermore, I hope we can think in terms of how to create aworkplace where not only women but also men, and employees
in all positions can work loyally.
Kosaka: I agree with Mr. Araki’s thoughts. As I spoke withpeople in the divisions responsible for initiatives to promote
active participation of women, I sometimes hear comments suchas “Why are women being told to be more ‘active’ when they
are already working so hard?” or “Becoming a manager is not
the only way to participate ‘actively’.” Indeed, I feel that themost important thing is for each employee, whether female ormale, to be able to achieve a work style that brings happinessand fulfillment. On the other hand, in order to reflect diverse
perspectives and sensibilities in management decisions, I believethat proactively increasing opportunities for women toparticipate in management is also a meaningful measure.
Kaide: I’ve come into business contact with European andAmerican manufacturers with petroleum refineries, and saw
how they actively promote women and non-white people. There
were a few women who were selected to head business units
overseeing global operations, and they were competent,
talented, and sometimes formidable negotiators. When I asked
an old acquaintance, a white male employee, about his true
feelings, he expressed some dissatisfaction with personnel
practices that appeared to be biased toward minorities. But evenin those companies, the board members at that time were
almost exclusively men. In Western companies where business
management and execution are separated, diversity seems tohave been promoted from the executive side. According to thedata, meanwhile, Japan lags behind the rest of the world interms of active professional participation and career promotionof women. We need to reflect on this greatly and take a serious
strategic approach to working on it. I think it is necessary for us
to make bold appointments during the transitional period while
we recruit and train our employees well.

PICK UP | Site Visits by Outside Officers
The C.I. TAKIRON Group has more than 20 offices and manufacturing
sites in Japan, including those of Group companies. Outside Officers areprovided with opportunities to gain first-hand information through onsite inspections and to use this information as a basis for making
management decisions. Outside Officers also appreciate the opportunity
to learn more about the status of each location and affiliate company
through plant tours and discussions with employees.

59

C.I. TAKIRON Group Integrated Report 2022

Q5. W hat are your thoughts on the role we should play in deepening Sustainability
Management?
Kosaka: In our company, Sustainability Management means
management that sees business and management from asocietal perspective, and emphasizes communication withstakeholders, aiming for our corporate philosophy “Creating apeople- and earth-friendly future”.
As a manufacturer and seller of plastic products, we havedeveloped many environmentally friendly products that meetthe needs of society and help solve societal issues such as
extreme weather and aging infrastructure, while pursuing theusefulness and potential of plastics. However, since our businessis mainly B-to-B, I feel that we have not been able to introduce
these efforts to the public at large. In light of the current
situation where the toxicity of plastics has become an issue forsociety, I believe that it would be effective in enhancing ourcorporate value for us to actively communicate our vision forgrowth as a company that handles plastics to the outside world.
Kaide: I believe there are three necessary conditions for acompany to be sustainable. The first is to be competitive. The
second is the ability to respond flexibly to changes in theenvironment. The third is a rewarding sense of job satisfaction.
The exact same thing goes for any industry. The sense I havefrom meetings and documents is that C.I. TAKIRON Group is acompany that builds up its work in a very meticulous manner.
Our base is well established, and I would like to use myexperience as a manager in the plastics processing industry tosupport the executive side of the company’s efforts to further
evolve toward sustainable growth.
In addition, as a former manufacturer, I would like toconsciously convey the attitude that safety takes precedenceo v e r e v e r y t h i n g e l s e . We w i l l e n s u re s a f e t y a w a re n e s sthroughout the workplace, and reemphasize our determination
not to allow even a single accident to occur in our daily
workplace operations. This is the kind of steady groundwork
through which I want to support well-balanced management.

Araki: The key to Sustainability Management is to manage froma long-term perspective. I feel that the C.I. TAKIRON Group,
which has been in business for over 100 years, has inherited thelong-term perspective mindset that represents the beauty of
traditional Japanese-style management. In this context, I still
believe that the challenges are to clarify our vision for theenvironmental impact and environmental contribution ofplastics, to evolve our management foundation in ways that areinclusive of women, and to revise our portfolio. As Mr. Kaide
mentioned, the most important thing is to maintaincompetitiveness over the long term, so we need to simulatesituations as we discuss what bottlenecks impede our progress,
and what direction the industry will take in the future. Throughthe activities of the Governance Committee, I hope to be ofhelp in any way I can.
Hatano: I think you’re all exactly right about the direction weshould take our Sustainability Management in, and the issues
we face. The concept of Sustainability Management has alreadybeen systematically organized in the form of our Corporate
Philosophy, Sustainability Vision, Action Guidelines, anddefinition of materialities, led by the Sustainability Strategy
Department. We are currently in the phase of accelerating ourefforts from a societal perspective, reviewing our materialities asneeded in light of changes in the external environment and ourcontribution to the SDGs.
The most important thing is that all employees of the Group
share these policies and act in unison. As we take pride in theaccumulated traditions and culture that our Group has built,
while contributing to society and cherishing dreams for the
future, I believe that each and every one of us must takeconcrete actions to make Sustainability Management happen.
Through the activities of the committee, I intend for us, theOutside Officers, to take the initiative in advancing discussions
that will encourage everyone to pioneer the future.

C.I. TAKIRON Group Integrated Report 2022

60

Stakeholder

Engagement with
Stakeholders

Shareholders
and Other
Investors

Customers
Business
Partners

Employees
Government
andMunicipalities

Local
Communities

Provision of Value
Safety and Security

Comfort and Peace of Mind

The C.I. TAKIRON Group aims to build trusting relationships
Resilience
Environmentand create a people- and earth-friendly future throughdiverse communication with all of its stakeholders. We will
deepen cooperation with our stakeholders and foster mutual
understanding to not only share our values and continue to be a trusted enterprise but also
contribute to the sustainable development of society through our business activities.

Stakeholders

C.I. TAKIRON Group Responsibilities

Department

Shareholders andOther Investors

OccasionallyOccasionally
Twice a year
Several times a year
Occasionally
Once a year
OccasionallyOccasionally
Daily basis
Occasionally
Daily basis
Daily basis
Daily basis

Contact Point for Inquiries

Daily basis

Website and advertisements
Consultation and Report Desk
Material procurement activities
Supplier briefing sessions

OccasionallyOccasionally
Daily basis
Regularly

CSR procurement surveys

Once a year

News releases
Employee-based volunteer activities
Dialogues with NPOs and NGOs

Occasionally
Regularly
Occasionally

Exchange in local communities, study
support, and plant tours

Regularly

Sustainability Department

Employee-based volunteer activities

Occasionally

Plants and offices

Coordination with relevant governmentorganizations

Regularly/
Occasionally

Messages from the President
Various employee surveys(Implementation of surveys publishedin-house for each category of job
training, etc.)
Intranet
In-house bulletinInternal reporting system

OccasionallyDepartment

IR Department
Sustainability Department
PR Department

Customers

Business
Partners

Local
Communities
Government
andMunicipalities

We listen sincerely to our customers, provide products andservices that continue to be nominated with outstanding
technology and quality, and strive to build long-term
relationships of trust with our customers.

When procuring materials, we base our actions on openness,fairness and impartiality, legal compliance, mutual trust, andconsideration for the environment, striving for coexistence andmutual prosperity by deepening partnerships and throughimpartial transactions.
We will also work to promote CSR and compliance with thecooperation of our business partners.
We contribute to the development of local communities
through our business, coexist with them, and emphasize
environmental conservation. We consider and implement
measures that meet the needs of each region and promotetrusted business activities.
We comply with laws and regulations and strive to disclose
information in a timely and appropriate manner. In addition, we
support disaster recovery and reconstruction through various
efforts in cooperation with the government and municipalities.

Sales Department
Quality Assurance
Department
Customer Support
Department
PR Department
Compliance Department

Employees

PR Department
Sustainability Department
Plants and offices

Compliance Department

Counseling with occupational physicians
Human Resource
Department

Health and Safety Committee
Regularly

Each department

61

C.I. TAKIRON Group Integrated Report 2022

Once a year
Twice a year

Purchasing Department

PR Department
We support the challenging spirit possessed by our
employees and promote the creation of a rewarding
workplace where each and every one of us stands out anddiverse human resources play an active role.

Frequency ofCommunication

General Shareholders’ Meeting
Notice to Our Shareholders report forshareholders
Corporate governance reports
Shareholder surveys
Financial results briefings
Individual investor briefings
News releases
Integrated Report
ESG rating agency survey responses
Website and advertisements
Sales activities and social media
Exhibition spaces, expos, and events
Quality certificatesInspection certificates
Delivery specifications

Corporate GovernanceIn order to meet the expectations of our shareholders andinvestors, we will strive to increase corporate value throughhigh capital efficiency, fair and impartial information
disclosure, proper return of profits, and sustainable growth.

Communication Tools

Personal interviews with superiors/
subordinates

OccasionallyOccasionally
Twice a year
Occasionally
Regularly/
Occasionally
Regularly
Regularly/
Occasionally
RegularlyCustomers
Quality Assurance Initiatives
The C.I. TAKIRON Group promotes quality assurance activities

In addition, each production site operates a Quality Manage-

to fulfill the needs of customers and ensure quality in order toprovide the quality able to satisfy our customers under the motto“To be the best of the best.” We have given our Basic Quality
Policy the meaning of “We build and strengthen trustful relationships with our customers and improve customer satisfaction in all
our business activities,” which serves as the core of our Quality
Management System (QMS).
As for specific quality assurance activities, we facilitate contact points as a means of communication with our customers such as a contact form on our homepage and a toll-free
telephone number to our customer service center in order toimprove customer satisfaction by responding to customer inquiries and requests.

ment System (QMS) which complies with the ISO 9001 standard
as the core framework of our quality assurance activities (see thediagram below). Customer requests relating to products serve toclarify product and service needs, which we then reflect in at
every stage of product planning, design and mass production.
We have also established a system to provide new and improved
products while closely examining such items as safety, quality,
cost, and environmental impact. In order to respond to changes
in the external environment and realize a sustainable society, we
conduct SDG contribution evaluations and environmental conservation evaluations at the product design stage. We are particularly focused on strengthening our perspective on helping solve
social issues.

Framework of the Quality Management System
Plan

Do

Planning

Customer Needs
Market Trends

DesignCheck

Preparation

Act

Customer Satisfaction
Complaints/Claims

Sales Services

Customer Needs

Handling Chemical Substances Contained in Products
We have not registered with the EU REACH Chemical Compliance Services because more than half of the products at C.I.
TAKIRON are molded products. Given our position in the middleof the supply chain, however, we will remain constantly aware of
how we are handling substances of very high concern (SVHC),

which are added from time to time, and we will communicate
this information to our customers and respond appropriately.
We will respond appropriately to the recent strengtheningof chemical substance regulations worldwide based on our response flow and provide information to our customers.

Handling Framework for Substances Contained in Products

Customers
Applicable Information

Business Partner A

Various Reports(SDS, RoHS, REACH, etc.)

SDS

Business Partner B Information about
Legal Amendments

Head Office/Production Sites(Quality Assurance Department)

Various Amendments and Other Information(The Law Concerning Examination and Regulation of
Manufacture, Applicable Information etc. of Chemical
Substances, the Law Concerning Pollutant Release andTransfer, the Food Sanitation Act, etc.)
Browsing/Distribution of Information

Various Amendments and Other
Information (RoHS, REACH, etc.)

Administrations/
Industrial Associations
Business Divisions

Product Information

Various Databases

C.I. TAKIRON Group Integrated Report 2022

62

Stakeholder

Business Partners
Material Procurement Policy
Our mission is to find harmony with the environment andprovide people-friendly products to society in all of our activities
founded in plastic materials and material processing technologies. We pursue material procurement partners who understandour Material Procurement Policy and can persevere in both business and product development with us through the procurementof purchased goods, such as raw plastic, secondary and metalmaterials, as well as processed goods.
In fiscal 2021, the C.I. TAKIRON Group established our CSR
Procurement Policy in order to build a sustainable supply chain.
To date, our parent Company and domestic Group companies
have explained our CSR Procurement Policy and CSR Procurement Policy Guidelines to suppliers whose transaction amounts
exceed a size specified as equivalent to 90% of the total, and wehave obtained their consent. In fiscal 2022, we will make further

efforts to understand the status of our suppliers’ ESG-related activities by utilizing the CSR Procurement Questionnaire.

C.I. TAKIRON Group CSR Procurement Policy (April 1, 2021)
1. Respect human rights and the labor environment
2. Safety and health considerations
3. Maintaining and strengthening environmental activities
4. Securing and improving safety and quality of finishedproducts
5. Maintaining and strengthening information security
6. Complying fair trade and ethics
7. Promoting dialogues with local communities and actively
contributing to society

Shareholders and Other Investors
By practicing IR activities based on the C.I. TAKIRON Group Corporate Code of Conduct, the C.I. TAKIRON Group strives to formulate
appropriate evaluations and aims to achieve lasting growth by building trusting relationships with all of its shareholders and other stakeholders.

Dissemination of Information
The C.I. TAKIRON Group complies with the Financial Instruments and Exchange Act, timely corporate disclosure regulationsof the Tokyo Stock Exchange as well as other laws and regulations
to properly and fairly provide accurate corporate information toshareholders and other investors. C.I. TAKIRON discloses important information through the Electronic Disclosure for Investors’
NETwork (EDINET) for the disclosure of securities reports andother financial materials in accordance with the Financial Instruments and Exchange Act provided by the Financial Service Agency as well as the Company Announcements Disclosure Service(TDnet) provided by the Tokyo Stock Exchange. We also publish
information on the corporate website quickly after it is released.

Flow of Internal System for Timely Disclosure
C.I. TAKIRON and each Group company
Financial information, decisions and incidents(Consideration of importance and timely
disclosure information)

Corporate Planning Department, Sustainability Strategy Department,
Legal & Compliance Department, Finance & Accounting Department

Board of Directors and Management Committee

Timely disclosure

63

C.I. TAKIRON Group Integrated Report 2022

Promotion of Constructive Dialogue with
Shareholders and Investors
We have put in place the policies below to establish systems
and initiatives to encourage constructive communication with allshareholders, analysts and institutional investors.
(1) The Chief Operating Officer of the Corporate Planning Division will oversee matters related to communication with allshareholders.
(2) Relevant internal departments will ensure active and close
cooperation to share information with other relevant departments in order to support communication with all shareholders.
(3) C.I. TAKIRON will properly conduct investor briefings as wellas surveys and other dialogues with shareholders.
(4) C.I. TAKIRON will regularly report feedback from all the shareholders earned through the initiatives in (3) at the Board of
Directors meeting and the Management Committee. Furthermore, the Board of Directors will review the voting results andreflect the feedback from shareholders in management.
(5) C.I. TAKIRON must never disclose material facts not yet officially disclosed in communications with shareholders andmanagers will thoroughly adhere to regulations on insider
trading.

Local Communities / Government and Municipalities
The C.I. TAKIRON Group hopes to be a good neighbor to the local citizens of each community worldwide where each business establishment and production site are located. With this hope, we engage in a wide range of efforts, including participation in various community
activities. As a manufacturer and seller of plastic products, we have identified addressing the global problem of marine plastic waste as
one of our materialities in fulfilling the SDG of “Responsible production and consumption.” Our related project is called “Waterside Clean
Aid,” in which employees and their families participate in volunteer activities to clean up beaches, rivers, lakes, and other areas as part ofactivities organized by each business and production site.
In addition, as a member of the community entrusted with society, we actively work to support sports promotion.

Coexisting with Communities in Areas around Business and Production Sites
Main Community Activity Results for fiscal 2021 Althoughsome activities were canceled or curtailed due to the spread of
COVID-19 infections, a total of 113 were held.
The number of Waterside Clean Aid activities, which are specified in our Medium-term Plan for Materiality as Item No. 5, Addressing the Marine Plastic Problem, was 85 compared to our target of 30, and the number of participants was 859, far exceeding
the target of 300. In addition to (1) coping with the problem ofmarine plastic waste and contributing to the resolution of social
issues, this activity is also part of our efforts to (2) learn about

Fiscal 2021 Community Activity Results
Waterside Clean Aid and Beautification Activities

85

Donations to local communities

14

Participation in weeding activities

5

Participation in community events and activities

2

Volunteer activities for community welfare

2

Cooperation with local school education

3

Blood drive, lifesaving and firefighting activities
Total number of times conducted

Lake Biwa Beautification Campaign (Shiga Plant)

the environmental pollution caused by plastic products so that
we can apply this knowledge to our own product development
and 3R + Renewable initiatives, and (3) improve communication
within the Group. Under our official banner of boosting our Waterside Clean Aid activities, we will increase the target numberof participants in our activities to more than 1,000 in fiscal 2022
and beyond.
We will continue to work within the C.I. TAKIRON Group ineach region to interact with local communities and support social
activities.

Official Mark of Waterside Clean Aid

2

Participants in Waterside Clean Aid Activities(Persons)
1,200
1,000
800
600
400
200
0

113

Seto River Beautification Association (Ibogawa Office)Ibogawa Clean Project (TAKIRON TECH)

1,200
859

1,000

300

2021
2021
(Target) (Result)2022(Target)2023 (Fiscal year)(Target)Riverbed cleanup and bulb planting (Hiratsuka Plant)

Promotion and Development of Sports
C.I. TAKIRON concluded an official Japan swimming team sponsorship agreement with the Japan Swimming Federation (JASF) in fiscal
2015 as a way to cheer on the Japan swimming team (TOBIUO Japan).
As a provider of non-slip flooring for poolside’s safety and security, TAKIRON MATEX CO., LTD. alsosponsors swimming tournaments held by the Japan Swimming Federation as well as provides broad support of activities to promote swimming as an official sponsor of the Japanese Para-Swimming Federation.

C.I. TAKIRON Group Integrated Report 2022

64

Stakeholder

Employees
Message from the Chief Operating
Officer of Production Div.

Building A Safe and Comfortable Workplace by Cultivating Employee Safety AwarenessThis is the C.I. TAKIRON Group’s health and safety policy for fiscal 2022. The safety and health of ouremployees takes precedence over everything else. This is because living an enriching life and maintaining
safety and health will stimulate corporate activity, which will lead to value creation. Our Group therefore
continues activities to improve a workplace where we can work safely and actively.
Through all-hands participation in “5S” activities (Sort, Set in Order, Shine, Standardize, and Sustain)
and small-group improvement projects, we will first establish an open corporate culture in which employees can freely express their opinions, and then exchange opinions and standardize equipment specifications, work environment, and operational procedures in order to work safely within this culture. Byenhancing each individual’s sensitivity to hazards in this way, we will work to create a safe and comfortable workplace.

Hironori Kikuchi

Managing Executive Officer,
Chief Operating Officer of
the Production Division

Health and Safety Management System
Based on the C.I. TAKIRON Group’s stated health and safety
policy of “Building a safe and comfortable workplace by cultivating employee safety awareness,” each C.I. TAKIRON Group company is developing and promoting health and safety activities toprevent occupational accidents and recurrences. We also mutually share and utilize information among our Group companies tobuild a system that promotes a higher level of health and safety
as well as risk reduction.

Important Safety Measures

Framework of Health and Safety Activities for Group Companies

Important Measures(1) Ensure awareness of and compliance with basic safety rules(2) Foster safety awareness by reviewing rules that cannot be
followed(3) Practice measure to mitigate risks by thoroughly investigating
accident factors(4) Comply with relevant laws and regulations and fully respond tolegal reforms

Provide education and practice basic safety activities(5) Ensure candidates undergo secondary examinations necessary
due to the results of physical examinations(6) Ensure candidates undergo specific health guidance(7) Ensure that no employees work prolonged hours due to overtime work

TOPIC

[Health]Group HealthManagers Council

C.I. TAKIRON
Health and Safety
Committee at EachBusiness Site

Health and Safety
Committee at EachGroup Company

Employees

Composition of theCommittee in Accordancewith the Industrial
Safety and Health Act.

Aiming for Zero Occupational Accidents through Safety Hands-on Training

Sensory training to heighten the ability of employees to anticipate
danger is vital to prevent industrial accidents. TAKIRON introduced
safety simulation equipment at the Aboshi Plant in fiscal 2017 andconducted this sensory training to heighten the ability of employees toanticipate danger. We conducted this training primarily at production
sites around the Aboshi Plant in fiscal 2017. In fiscal 2018, we broughtin safety simulators to production sites throughout Japan in order toprovide on-site simulation training. As a result, at the end of fiscal
2019, the first phase of simulation training had been conducted at all
C.I. TAKIRON plants and Group company production sites.
In addition, we started providing the second phase of simulation training in fiscal 2020. While the first phase focuses on hands-on experience
with the dangers inherent in machinery, the theme of the second phaseis to avoid underestimating hazards by taking behavioral psychology as
the point of departure. The third phase of training focuses on unsafe
behaviors through reflection on one’s own behavior. By participating in

65[Safety]Group Health and
Safety Manager
Council

General Manager
Safety: Chief Operating
Officer of the Production
Division
Health: Chief Operating
Officer of the Corporate
Administration Division
Secretariat
Safety: Production Planning
Department
Health: Human Resource
Department

C.I. TAKIRON Group Integrated Report 2022

multiple training sessions like these, we
also aim to maintainability to predict danger by employees.
We will continue toutilize VR-based experiential equipment tocultivate an intuitive
understanding of familiar dangers in the Safety simulation room
workplace. Our goal
is to eliminate industrial accidents throughout the entire C.I. TAKIRONGroup by thinking about how we should make use of the awareness toimprove a sense of danger as well as an awareness about safety.

Safety Activities at Group Production Sites
C.I. TAKIRON Group conducts various activities at each produc-(2) Evaluated the Level of Safety Managementtion site with the health and safety committees at the core. In fis-

In fiscal 2020, a safety management level assessment was con-cal 2021, the following priority action items were implemented:(1) in-depth investigation of the causes of occupational accidents
and implementation of more effective countermeasures by the
Safety Review Board, and (2) identification of the level of safety
management through safety management level assessment. Implementation of (1) and (2) will continue in fiscal 2022.
(1) Safety Review Board
Until fiscal 2020, we had primarily been pursuing causes andimplementing countermeasures only at our own plants where occupational accidents had occurred. However, since the exclusive
focus on our company’s own plants lacked objectivity and was insufficient for studying countermeasures, we established a Safety
Review Board with the participation of managers from neighboring plants. The purpose of the Safety Review Board is to receive
suggestions from a third-party viewpoint, to identify in depth thecauses of occurrences that would be difficult to notice in our own

ducted for C.I. TAKIRON’s plants, and in fiscal 2021, the scope of
the assessment was expanded to include the plants of all Group
companies. The purpose is to identify the strengths and weaknesses related to safety management at each site, and to improve
the Group’s overall level through comparative and horizontal implementation across plants.
(3) Preventing Near Misses with Preemptive Measures
According to Heinrich’s Law, for every one serious accident ordisaster, there are 29 minor accidents, with another 300 anomalies or near misses hidden in the background. Reducing these
300 near misses is the key to preventing occupational accidents.
Until fiscal 2021, our focus, including that of the Safety Review
Board noted in (1), was on “mopping up” actions after the fact,
such as implementing remedial countermeasures once an industrial accident had already occurred. In fiscal 2022, however, we
are implementing preventive countermeasures at the near missplants alone, and to take effective countermeasures. In addition,
when we encounter cases that are applicable to other plants, wedeliberate and share them cross-organizationally.

stage before an industrial accident can occur, in a sense “mopping up in advance,” to preempt industrial accidents.

FY 2021 Industrial Accidents (Including Injuries with No Leave of Absence for All Group Companies)
At Least
20 Years

Between 10 to lessthan 20 Years 5%
Other 25%

Contact with
Hazardous Material

27%

Between 5
to less than
10 Years

Ratio by Type

6%

Reactionary /Unreasonable
Movement

12%

11%

Cuts/Scratches

22%

Falling

Pinching/
Entanglement

Accident Ratio
by TenureLess than
5 Years

62%

18%

12%

Feedback from Trainees
The following is a sampling of comments from a total of 521 participants in fiscal 2021.

By experiencing the fear for myself in a realistic way, I was able to learn
how hazardous machinery is, and what a frightful thing carelessness canbe. I will keep what I learned and felt today in mind as I go about my work.

I learned that pointing and calling, which I had already been doing without thinking about it, can prevent accidents from occurring. I knew thatnearby machinery posed a hazard in my daily work, but I did not understand how dangerous it was, so I was glad to learn about it in this training.

A new C.I. TAKIRON employee

TAKIRON TECH

I realized that we need to extend our awareness to what lies beyond our unconscious actions. This is my third experiential training,
and it has been a good opportunity to reflect on my own behavior.
C.I. TAKIRON CIVIL Yokaichi Plant

Since I always have danger next to me, I felt that it’s good to err on the side of being
too careful. I felt the importance of checking with those around me if I have any
questions, and of always remembering the conscientious attitude I had as a beginner.
TAKIRON-ROWLAND

I was reminded that there are many dangers in the places where wework. I learned that accidents involving pinching and entrapment
occur the most, and I intend to work safely from now on. I realized
the cumulative importance of little things like pointing and checking.
C.I. TAKIRON CIVIL Ako Plant

To be honest, there have been countless times in the past when I
figured pretty good was good enough. This training program mademe suddenly realize that that’s exactly when accidents can happen.
Shiga Plant

C.I. TAKIRON Group Integrated Report 2022

66

Main Financial/Non-financial Data (Quinquennial Data)
Financial Data

Unit: Millions of Yen
FY2017FY2018FY2019FY2020

FY2021

Management Performance
147,805

150,650

139,432

134,470

Operating Profit

8,363

9,080

7,372

8,511

Ordinary Profit

8,204

9,200

7,611

8,807

141,936
8,651
9,084

Current Net Income Attributable to the
Owners of Parent

6,579

6,391

13,091

5,332

6,660

Depreciation

4,896

4,533

4,682

5,378

Capital Investment

3,969

7,430

12,388

5,149

Research & Development Expenses

1,288

1,109

1,165

1,134

5,244
4,145
1,214

Total Assets

141,116

138,251

144,956

142,743

Net Assets

69,90974,31082,84087,367

Equity Capital

68,332

72,68081,36285,707

Interest-bearing Liabilities

11,729

4,911

5,085

4,438

Accumulated Surplus

22,031

26,571

36,73838,757

Cash Flow from Investment Activities

9,328(1,575)9,805(9,620)4,365(2,191)

Cash Flow from Financial Activities(9,160)(9,160)11,017(5,922)(3,115)

7,752

184

5,095

2,174

15,800

6,835

8,746

6,712

97,50097,50097,50097,500

18

26

37

22

26.7

39.6

27.5

40.2

97,500
27
39.5

67.49

65.62

134.47

54.77

68.47

700.99746.42835.82880.28928.28

ROA (%)

4.7

4.6

9.2

3.7

ROIC (%)

7.3

8.1

5.9

6.6

9.6

8.8

17.0

6.4

0.17

0.07

0.06

0.05

4.6
6.4
7.6
0.04
6.1
61.4
17.7

Net Sales

Financial Status

147,061
92,05590,243
3,914
43,175

Cash Flow
Cash Flow from Business Activities

Free Cash Flow
Balance of Cash and Cash Equivalents (End of Term)(4,292)

11,942(7,516)(3,166)
4,425
7,790

Stock Information
Total Number of Issued Shares (Thousand Shares)
Dividends Per Share (Yen)
Payout Ratio (%)

Information about One Share ofCompany Stock
Current Net Income Attributable to the
Owners of Parent (Yen)
Net Assets (Yen)Management Index

ROE (%)
Debt-to-Equity Ratio (D/E Ratio)

5.7

6.0

5.3

6.3

Capital-to-Asset Ratio (%)

48.4

52.6

56.1

60.0

Overseas Net Sales Ratio (%)

15.9

15.5

15.8

16.0

Operating Profit on Sales (%)

67

C.I. TAKIRON Group Integrated Report 2022

*The user count represents the number of people who started using the service during the fiscal year.

Non-financial Data
FY2017FY2018FY2019FY2020

FY2021

Energy Consumption Rate (GJ/Manufacturing Ton)

13.1

13.0

12.2

12.6

Unit CO2 Emissions (t-CO2/Manufacturing Ton)

0.67

0.63

0.55

0.52

13,42813,083

13,21012,627

1,174

1,176

1,053

1,000

897

1,004

809

801

12.4
0.50
12,657981
796

Number of Consolidated Employees (Persons)

3,369

3,412

3,369

3,299

Number of Non-consolidated Employees (Persons)

1,143

1,186

1,180

1,167

Male (Persons)

986

1,009

997

969

Female (Persons)157

Environmental Index

Total Waste Emissions (t)Water Consumption (Thousand m3)
Waste water (Thousand m3)

Social Indicators

177

183

198

3,227
1,084
906
178

 umber of Female Career-track Employees
N(Number of Management Positions) (Persons)

47(1)

48(2)

53(4)

61(5)

 atio of Female Employees in ManageR
ment Positions (%)

0.43

0.90

1.81

2.40

18.3

18.4

18.0

22

14

11

13

16

10

5

9

6

4

6

4

Female Employment Ratio (%)

27.3

28.6

54.5

30.8

Labor Union Membership Rate (%)

69.07

68.71

69.70

66.69

19.4
20.2
15.0
2.12
89.4
32
27
5
100
1.02
14
10
4
28.6
71.1
July 2022

Average Years of Service (Years)
Male (Years)

18.6

Female (Years)

14.9

Employment Ratio of Disabled Persons (%)

2.11

2.11

2.26

2.34

Rate of Paid Leave Taken by Employees (%)

55.4

62.4

91.2

88.2
36

Number of Employees Taking Childcare Leave (Persons)*29

Male (Persons)

7

Female (Persons)100

Ratio of Employees Returning from Childcare Leave (%)
Turnover Rate (Voluntary Retirement Only) (%)
Number of New Graduate Employment (Persons)Male (Persons)Female (Including Clerical Positions) (Persons)

0.90

1.05

July 2017

July 2018

July 2019

July 2020

July 2021

12

8

9

8

6

Governance Indicators (6 years)
Number of
Directors

7

Number/Ratio of Outside
Directors

1 ／ 8.3%

2 ／ 25.0%

2 ／ 22.2%

3 ／ 37.5%

3 ／ 50.0%

3 ／ 42.9%

Ratio of Male/Female
Directors (Male/Female)

12 ／ 0

8／0

9／0

7／1

5／1

6／1

4

4

3

4

4

4

Number of
Audit &
Supervisory Number/Ratio of Outside Audit& Supervisory Board Members
Board
Members
Ratio of Male/Female
Audit & Supervisory Board
Members (Male/Female)2 ／ 50.0%

2 ／ 50.0%

2 ／ 66.7%

2 ／ 50.0%

2 ／ 50.0%

2 ／ 50.0%

4／0

4／0

3／0

3／1

3／1

3／1

C.I. TAKIRON Group Integrated Report 2022

68

Corporate Profile and Stock Information (As of March 31, 2022)
Corporate Profile
Trade Name

C.I. TAKIRON Corporation

Main Affiliations (As of May 30, 2022)

Established

October 10, 1919

Incorporated

December 20, 1935

Head Office
Address

3-1-3 Umeda, Kita-ku, Osaka 530-0001, Japan(North Gate Building)TEL+81 (6)-6453-3700

Websitehttps://www.takiron-ci.co.jp

Capital¥15,204 million (As of August 22, 2022)

Kansai Chemical Industry Association
Kansai Economic Federation
Japan Clean Ocean Material Alliance(CLOMA)
Japan PVC Pipe and Fittings Association
JA Packaging & Horticulture Materials
Association
Nippon Interior Association

Number of Employees(Consolidated)

3,227Japan Vinyl Goods Manufacturer’s Association

Stock Information
Securities Code4215

Total Numberof Issued Shares

97,553,655 (As of August 22, 2022)

Number of
Shareholders

12,681

Stock Listing

Tokyo Stock Exchange Prime Market

Share Unit

100

Administrator of
Shareholder Registry

Sumitomo Mitsui Trust Bank, Limited

Accounting Auditor

Deloitte Touche Tohmatsu LLC

Distribution of Shares by Shareholder

0.02%

Financial
Institutions

Individuals andOther Shareholders
Ratio of Share Holding (%)

55.54

The Master Trust Bank of Japan, Ltd. (trust fund)

6.28

Custody Bank of Japan, Ltd. (trust fund)1.85

Sekisui Jushi Corporation

1.40

KANEKA CORPORATION

1.35

TAKIRON Employee Stock Ownership Association

1.17

DFA INTL SMALL CAP VALUE PORTFOLIO

1.09

Watanabe Pipe Co., Ltd.

0.90

RE FUND 107-CLIENT AC

0.66

GOVERNMENT OF NORWAY

0.52

Note: The ratio of share holdings is calculated by excluding treasury stock.

C.I. TAKIRON Group Integrated Report 2022

7.76%

Treasury Stock

9.65%

ITOCHU Corporation

69

1.19%

Foreign Persons

Major Shareholders (Top 10)
Name of Shareholder

Securities Firms

14.73%

Other JapaneseCorporations

66.65%

Business Sites (As of June 30, 2022)

2
12

10
14

4

13

Business Sites
3

List of C.I. TAKIRON Business Establishments

6

Head Office3-1-3 Umeda, Kita-ku, Osaka■ Head Office■ Tokyo Head Office 2-15-1 Konan Minato-ku, Tokyo
Branches/
Sales Offices■ Sapporo Sales
Office■ Tohoku Branch■ Chubu Branch■ Chugoku/
Shikoku Branch■ Kyushu Branch

Manufacturing Bases
1

Aboshi Plant

8

Hiratsuka Plant

2

Ibogawa Office9

Sano Plant

3

Yasutomi Plant

4

Tokyo Plant

5

Shiga Plant

6

Okayama Plant

7

Tochigi Plant

11
7

R&D Centers
10

R&D Center
8

1
6
9 6
3 5
6
2
10
1
15
7 15

6

9

4

1

5
1

8

Affiliate Companies
Construction Materials Business

Environmental Materials BusinessHigh Functional Materials Business

Other Affiliate Companies❶ SANWA SIGNWORKS CO., LTD.
○ C.I.TAKIRONPLUS CORPORATION❷ BONLEX EUROPE S.R.L. [Italy]❸ HOKKAIDO SANPLUS CO., LTD.
○ C.I. TAKIRONAGRI CORPORATION*○ C.I. MATEX CORPORATION❹ PT.TAKIRON INDONESIA [Indonesia]❼ TAKIRON-ROWLAND LIMITED❽ TAKIRON POLYMER CO., LTD.
❾ CIK NANOTEK CORPORATION❿ SHANGHAI CIK ELECTRONICS
CO., LTD. [China]⓯ TAKIRON TECH CO., LTD.
○ SHANGHAI C.I. KASEI TRADINGCOMPANY LTD. [China]○ TAKIRON MATEX CO., LTD.

❺ DAILITE CO., LTD.
❻ C.I.TAKIRONCIVIL CORPORATION*YOKOBI CO., LTD. and C.I. AGRO CORPORATION
merged as of April 1, 2022, and the company
name was changed to C.I. TAKIRONAGRICORPORATION○ C.I. TAKIRON LOGISTICS CO., LTD.
○ DAIPLA WINTES CO., LTD.
○ MAVERIQ Partners Inc.

Specialty Films Business⓫ BONPACK CO., LTD.
⓬ BONSET AMERICA CORPORATION[United States]⓭ BONSET LATIN AMERICA S.A.
[Uruguay]⓮ SHANGHAI SANPLUS PLASTIC CO.,LTD. [China]

C.I. TAKIRON Group Integrated Report 2022

70

Head Office530-0001
North Gate Building, 3-1-3 Umeda, Kita-ku,
Osaka 530-0001, Japan
TEL +81-(6)-6453-3700 FAX +81-(6)-6453-3884