C.I. TAKIRON Group

Integrated Report

2019

C.I. TAKIRON Group Integrated Report 2019

Mission of C.I. TAKIRON

Create a people- and earth-friendly
future through plastics technology.
Management Philosophy of C.I. TAKIRON
1. We always try to protect the global environment and aim for permanent development and growth of
the Company.
2. We will contribute to society by providing a quality and price that will satisfy our customers.
3. We will be ahead of social change and sustain enthusiasm for the challenge to the unknown.
4. We will give consideration to people and respect individual characteristics and ingenuity.
5. We will pursue legitimate profits and strive for fair distribution.

Corporate Message

Statement
Here is what we can do for today - In order to support the security of the world we live in, provide consistent supply
durable, easy-to-use products. Here is what we can do for today - In order to support the security of the world welive in, provide consistent supply durable, easy-to-use products.
Here is what we can do for tomorrow - In order to make our lives more comfortable create products that meetcontemporary needs by using technologies and ideas.

Here is what we should do for today and tomorrow - Continue to explore the potential of plastics and create
products that contribute comfort and utility to our everyday lives.
Make our products even more durable, lightweight, elegant and environmentally friendly.
Utilize flexibility of thought in the continuing challenge of manufacturing new products.

2

C.I. TAKIRON Group Integrated Report 2019

CONTENTS

Editorial Policy

Contents/Editorial Policy

3

One Century of History at C.I. TAKIRON

4

We publish this report for the purpose of deepening communication with all of our stakeholders

CEO Message

6by providing information about CSR management

Business Overview

8

as well as the basic CSR concepts and specific initia-

Financial/Non-financial Highlights

10

tives of C.I. TAKIRON Group.

COO Message

12

Medium-term Management Plan

18

Value Creation Process Chart

20

Priority Issues (Materiality)

22

Business Summary by Business DivisionHigh Functional Materials Division

24
26
28

Specialty Films Division

30

Construction Materials Division
Environmental Materials Division

Reporting Period
FY 2018(Sunday, April 01, 2018 to Sunday, March 31, 2019)*This report includes some information outside of thisreporting period.

Reporting Organizations
C.I. TAKIRON Corporation and its Group Companies
Publication Date
September 30, 2019Technology, Research & Development
Creation of New Business and Development of
New Products Bearing the Future

32

Main Reference Guidelines

34

Ministry of Economy,
Trade and Industry
Guidance for Collaborative Value
Creation

38

Ministry of the Environment
Environmental Reporting Guidelines

In Harmony with the Global Environment

40

Environmental Index

42
45

International Integrated Reporting Council (IIRC)
International Integrated Reporting Framework

Personnel and Human Resource Development
Pursuit of Growth in All Working People

Health and Safety
Every Person Shall Always Think About Safety
and Build a Robust Workplace

Environmental Report

Environmental Accounting

Introduction of Communication Tools

Sociability Report
Together with Stakeholders

46

Together with Local Communities
and Society

48

GovernanceCompliance Risk Management

50
54

Directors, Audit & Supervisory Board Members,
and Executive Officers

56

Corporate GovernanceQuinquennial Data
Corporate Profile and Stock Information
Business Sites

We cover basic information about C.I. TAKIRONGroup on the company homepage while comprehensive management information is published in
the annual report.
*The C.I. TAKIRON website provides online videos for aneasy-to-understand business profile. Please take a look.

58
60
61
Corporate Information

Annual Report (IR Information):

https://www.takiron-ci.co.jp/
corporate/

https://www.takiron-ci.co.jp/ir/

Inquiries regarding this report:
C.I. TAKIRON Group

Sustainable Development Goals (SDGs) are internationaltargets set from 2016 to 2030 included in The 2030
Agenda for Sustainable Development adopted at theUnited Nations Summit in September 2015 as a succession to the Millennium Development Goals drafted in
2001. These SDGs are made up of 17 goals and 169 targets to realize a sustainable world.

3

CSR & ComplianceDepartment
Tel: +81-3-6711-3933
Fax: +81-3-6711-3935
Integrated Reporthttps://www.takiron-ci.co.jp/ir/
integrated.php

Integrated Report 2019

SDGs (Sustainable Development Goals)

C.I. TAKIRON Group

Integrated Report

2019

C.I. TAKIRON Group Integrated Report 2019

One Century of History at C.I. TAKIRON
C.I. TAKIRON celebrated its 100th anniversary on October 10, 2019. This century of business is thanks to the support ofeveryone who was part of the history with us. The C.I. TAKIRON Group will continue to persevere with unflinching passionin order to support the security of the world we live in today as well as make our lives more comfortable for tomorrow.

● Former Takiron

1919

1930

1960

1970

1919 Founding

1935

1961

1971

Takiron Chemical Co., Ltd. is listedon the Second Section of the Osaka
Securities Exchange.
● Takiron Chemical Co., Ltd. starts
manufacturing polycarbonate plates.

◆●

Sataro Takigawa establishes
Takigawa Celluloid Plant in
Katae, Ojimura-Oaza in the
Higashi-Nari District of Osaka(Ikuno-ku, Osaka today) to
begin the sale of remanufac-●

Takigawa Celluloid Plant constructs
the new Aboshi Plant in Mitsu-cho in
the Ibo District of Hyogo Prefecture(Mitsu-cho, Tatsuno City today).

●◆ Former C.I. Kasei◆

Aboshi Plant at the time●

Takigawa Celluloid Plant incorporates
under the name Takigawa CelluloidCo., Ltd. (3 million yen in capital),Founding President and Representative
Director Tsunezo Nishida

Yokohama Rubber Co., Ltd.
(Yokohama Rubber Company,
Limited today) establishes Hama
Kasei Co., Ltd. as a joint capital venture with the Zeon Corporation andother Furukawa Group companies(473 million yen in capital).

1955●

Sataro Takigawa

1964
Product Prototype and Research Group

Takigawa Celluloid Plant
begins sale of pearl sheets(celluloid sheet with a pearllike luster and color).

1958●

Takiron Chemical Co., Ltd. starts thesale of polypropylene waste waterdrainage basins.

Takiron Chemical Co., Ltd. listed on
the First Section of the Tokyo Stock
Exchange.
● Takiron Chemical Co., Ltd. constructs
the new Yasutomi Plant in Yasutomicho in the Shiso District of Hyogo
Prefecture (Yasutomi-cho, Himeji City
today).
● Takiron Chemical Co., Ltd. changes its
name to Takiron Co., Ltd.
●

◆

●

●

1973

Hama Rubber Building housing the Hama Kasei
headquarters
Doll made from
celluloid sheets

1972

Waste water drainage basin with a highly durable
shape even underground.

Takigawa Celluloid Co., Ltd. begins
the sale of TAKIRON Plate rigid vinyl
chloride sheets.

Takiron
The name Takiron was formed from the “Taki”
in Takigawa Celluloid and “lon” from nylon andvinylon pronounced “Ron” in Japanese to evoke
an image of polymer chemistry.

1928

The corporate logo for C.I. Kasei overlaps
the diamond shapes of the Hama Kasei
and Kobe Resin corporate emblems tosymbolize an integrated form.

1963

tured celluloid.

Hama Kasei Co., Ltd. and Kobe Resin
Co. Ltd. merge to form C.I. Kasei Co.,
Ltd. (800 million yen in capital).

Hama Kasei Co., Ltd. constructs the
new Shiga Plant in Ishibe-cho in the
Koga District of Shiga Prefecture(Konan City today).

1977◆

C.I. Kasei Co., Ltd. starts the sale ofhydrophilic water sealing materials.

1979

Takigawa Celluloid Co., Ltd. starts
manufacturing rigid vinyl chloride
corrugated sheet using an extrusion
process.

◆

C.I. Kasei Co., Ltd. starts the sale ofheat-shrinkable films.

1959●

Pre-war fountain pens made frompearl sheets

Takigawa Celluloid Co., Ltd. changes
its corporate name to Takiron
Chemical Co., Ltd. and established a
corporate logo.
The corporate logo was designed by
combining the infinity symbol andP" for plastic signifying the aim for
infinite development and growth.

4

Shiga Plant at the time

1965◆

Hama Kasei Co., Ltd. starts manufacturing agricultural vinyl film.

Heat-shrinkable film able to further various
applications, such as labeling for food,
pharmaceuticals, cosmetics, and daily necessities

C.I. TAKIRON Group Integrated Report 2019

100th Anniversary Website

https://www.takiron-ci.co.jp/100/

1980

1990

2000

1980

1992

2000

◆

C.I. Kasei Co., Ltd. starts the sale ofBelbien self-adhesive decorative film.

◆

C.I. Kasei Co., Ltd. starts the sale ofagricultural polyolefin film.

●

1993
●

Takiron Co., Ltd. establishes its corporate color.

Takiron Co., Ltd. constructs the
new Ibogawa Office in Ibogawacho in the Ibo District of Hyogo
Prefecture (Ibogawa-cho, Tatsuno
City today).

The color represents beautiful nature
and welcoming environment filledwith vitality.
◆

Belbien interior dressed lumber providing bothdesign and functionality (surfaces of the round pillar
and fixtures shown in the photo)

C.I. Kasei Co., Ltd. starts the sale of
BONLEX decorative resin laminate
sheets.

Ibogawa Office at the time
●

1982
◆

C.I. Kasei Co., Ltd. starts the sale ofBinon Hydrotite hydrophiric water sealing materials.

2005
●

1985
●

Takiron Co., Ltd. starts the sale of polycarbonate corrugated sheets.

Takiron Co., Ltd. starts the sale of
FM Plates, which are plastic plates
conforming to the FM standards.

Takiron Co., Ltd. starts the saleof the new Jet Line rain gutter
system.

2017
Takiron Co., Ltd.
andC.I. Kasei Co., Ltd.
undergo management integrationand change the corporate name to
C.I. TAKIRON Corporation.

BONLEX used as decorative sheeting for kitchen
doors and furniture

1994●

Takiron Co., Ltd. starts the sale ofTakistron slip-resistant vinyl flooring
sheets for condominiums.
In the following year Takiron Co.,
Ltd. starts the sale of Takistep soundinsulation and slip-resistant flooringmaterial for stairs.

C.I. TAKIRON Corporation integrated the corporate emblem
Jet Line rain gutters dramatically improvedrainage performance●

Takiron Co., Ltd. starts the sale ofLume Carbo large polycarbonate
plastic double-layer panels.

the corporate emblem of C.I.
Kasei Co., Ltd.

C.I. Kasei Co., Ltd. starts the sale ofmicro motors.

Takistep helps prevent falls and reduce noise on
staircases

Lume Carbo system panel materials providing
natural lighting, heat insulation, lightness andhigh rigidity

1999
C.I. Kasei Co., Ltd. constructs the
new Okayama Plant in Niimi City,
Okayama.

2009◆

High-performance motors used in compact robots, precision machines, medical devices and other equipment

5

C.I. Kasei Co., Ltd. starts the saleof whiteboard sheets.

to evokethe idea of forging ahead
into a new future as one newcompany.

1989

◆

sym-

development and growth with

2007

Polycarbonate corrugated sheets offering superior
impact strength, heat resistance, cold resistance andtransparency◆

for Takiron Co., Ltd.

bolizing plastic and infinite

C.I. TAKIRON Group Integrated Report 2019

CEO Message

Providing a Quality Workplace
for a Better Life

We have formulated theBetter Life Management Declaration
as the most vital mission of management
based on the belief that providing
a quality workplace to offer a better life
in turn fosters growth of the company.

Better Life Management Declaration

Representative Director Chairman & CEO

Yosuke Minamitani

6

C.I. TAKIRON Group Integrated Report 2019

Desire to Forge a New Corporate Culture
C.I. TAKIRON celebrated its 100th anniversary in 2019. I would like to share my deepest appreciation once
again to all of the stakeholders who supported the continuous growth of our organization for so many years.
Over the century from our founding the year after the first world war until today, we have faced tremendous
changes in the management environment from the second world war, the rapid economic growth in Japan, andthe collapse of that economic bubble to the Great East Japan Earthquake and an aging society with a declining
birthrate. Throughout this long history, we have been directly confronted by a wide range of management
issues. It is thanks to the support of the shareholders and our business partners as well as the loyalty of our
executive officers and employees that we have overcome the changes of the times to merge Takiron and C.I.
Kasei in 2017 and succeed in celebrating our 100th anniversary as C.I. TAKIRON.

Using this 100th anniversary as a milestone, the C.I. TAKIRON Group has started the Better Life Management
Declaration to provide a quality workplace to offer a better life to our employees and their families toward thenext century of business in 2019.
Peopleʼs values have diversified and the corporate work environment has drastically changed from the times
when professional and private life were one in the same, from the Showa Period when the society saw constanteconomic growth to the end of the Heisei Period where the impact of this growth was clear, and even today
in the Reiwa Period.
The Better Life Management Declaration is a message from the company for the purpose of creating a newcorporate culture that takes into account the lifestyles of each and every employee to prevent skilled employees
passionate about work from losing opportunities to contribute to the company for various reasons such as childraising or nursing care. A better life for our employees is the source of growth for the company.
C.I TAKIRON must provide a work-friendly environment to our employees regardless of how surmountable the hurdle to do so. However, building a quality workplace involves the employees as well and demands
employees to have a sense of ownership for their work as ideal human resources. There is no task within acompany that can be completed alone. We will do everything we can to play an even greater role for everyone
than ever before by building a new corporate culture where employees have a sense of ownership toward thegoal of the task at hand in an organization that encourages diversity while the climate supports perseverance
without fear of failure.

The Takigawa Celluloid Plant, the initial form of C.I. TAKIRON, also had a history continuously creating value.
The C.I TAKIRON Group continues to aim to provide safety and comfort and contribute to the sustainable
development of society according to its mission of creating a people- and earth-friendly future through plastics
technology.

7

C.I. TAKIRON Group Integrated Report 2019

Business Overview
C.I. TAKIRON contributes to better life and development of society in addition to solutions toward environmental andsocial issues in four business sectors driven by plastic production and processing technologies.

FY 2018

Net Sales
Entire Group
Year-on-year Rate
Specialty Films
Business¥20,824 million

14％High Functional
Materials Business

Operating Profit

150,650
Up 1.9%¥millionConstruction
Materials
Business

Specialty Films
Business¥48,502 million

32％¥1,969 million

22％High Functional
Materials Business¥18,935 million

¥

9,080
Up 8.6%

millionConstruction
Materials
Business¥3,458 million

38％¥1,767 million

13％

19％

Operating Proﬁt

Net Sales

Environmental
Materials Business

Environmental
Materials Business

41％

21％

¥62,388 million¥1,878 million

8C.I. TAKIRON Group Integrated Report 2019

Small-scale Rainwater Storage
and Filtration Tank Materials

Construction Materials BusinessHousing Materials Business/
Flooring and Decorative Materials BusinessSupports Comfortable Living and Urban
Environments
We of course provide safety and durability but also
have a broad track record which has earned a highlevel of trust in the construction field where aesthetics and comfort are essential. Our wide-ranging
product lineup supports comfortable living and urban
environments.

Catch Basins

Flooring for Condominium
Corridors

Translucent Plates(Polycarbonate Plates)

Multi-layered Plates

Environmental Materials Business
Agriculture Business/
Infrastructure Material BusinessContributes to the Revitalization ofAgriculture and Supports Safety of Social
Infrastructure

Howell Pipes(Civil Drainage Pipes)

We contribute to the revitalization of agriculture byproviding high-quality agriculture materials, such as
agricultural films and irrigation tubes. We also offer
materials that support the function and safety ofsocial infrastructure according to the various applications and purposes.
Sky 8 Fog and Mist Prevention/Resin-coated Steel Stakes

Waterproof Geomembranes(Industrial Waste Processing Pipe Rehabilitation Work
Facilities)(Sewer Pipes)

High Functional Materials BusinessHigh Functional Materials Business
Fulfills Requirements for High Reliability from
Industrial Applications to Precision Electronics

Laser Shield Plates

C.I. TAKIRON high functional materials play an important role in many fields from industrial applicationsin technically demanding semiconductor and liquid
crystal manufacturing to the high reliability needs ofcameras and RC servos.
Cleanrooms

Micro Motors

White Board Sheets

Specialty Films Business
BONSET Business/
SANZIP Business
Optimizes Design for Various Uses from
Product Labels to Packaging Products
Our internationally-recognized, advanced film technology allows the optimal design, resulting inbeautiful product labels that improve product value
and packaging films which meet the demand for highhermeticity.
Shrink Wrap Labels for Bottles

9

Zipper Tapes

C.I. TAKIRON Group Integrated Report 2019

Financial/Non-financial Highlights
Net Sales (Millions of Yen)Point

147,805
FY 2017150,650
FY 2018

We were able to cover the impact causedby the reorganization of non-core businesses via decisive action in the expansionof construction and environmental materials
through disaster recovery response as well
as revision of the sales organization throughout the entire Group. The Group was able toincrease revenue 1.9% year-on-year.

Ordinary Profit (Millions of Yen)
Point

8,204
FY 20179,200
FY 2018

The impact of soaring raw material costs
was equivalent to approximately two billion
yen, but we actively promoted reduction ofother production costs and product priceadjustments. In addition, we improved our
profitability through the reorganization of
non-core businesses and other such measures
to increase revenue 8.6% year-on-year.

Current Net Income Attributable to the Owners of Parent (Millions of Yen)

6,579
FY 2017

6,391
FY 2018

Point

The current net income decreased 2.9%
year-on-year due to the recoil of a 1,180 million yen loss in goodwill the previous fiscal
year, but exceeded the annual consolidated
earnings forecast by 6.5%.

Capital Investment (Millions of Yen)
Point

3,969
FY 20177,430
FY 201810

We actively engaged in capital investment
increasing the amount 87.2% year-on-year. In
Japan, we consolidated production sites forpolycarbonate building materials and began
rebuilding production sites in the Kanto
region for environmental materials. Overseas,
we reinforced production capabilities in various countries such as the U.S. and Italy.

C.I. TAKIRON Group Integrated Report 2019

Energy Consumption Rate (GJ/Manufacturing Ton)
Point

13.1
FY 2017

Independently, we were able to increase production
while reducing our energy consumption rate throughefforts such as the adoption of energy-saving devices.
However, the Group companies had a higher energy consumption rate due to decreased production, which offset
the energy reduction. This resulted in an almost equivalent energy consumption rate for the Group as a whole.
(Year-on-year Rate - 0.9%)

13.0
FY 2018

Unit CO2 Emissions (t/Manufacturing Ton)

0.67
FY 2017

0.63

Point

We reduced our unit CO2 emissions as a result of measures that included the adoption of energy-saving devices
and the transition of some sites to power companies witha low CO2 emissions factor. (Year-on-year Rate - 6.1%)

FY 2018

Female Employment Ratio (%)

33
FY 2017

29

Point

We hired 14 new graduates (four of whom were women)
against our employment plan to hire 15 new graduates(five of whom were women), and our female employment
ratio decreased compared to fiscal 2017.

FY 2018

Rate of paid leave taken by employees (%)

55.4
FY 2017

62.4

Point

The rate of paid leave taken by employees increased
compared to fiscal 2017 as a result of employee encouragement to take paid leave regularly.

FY 2018

11

C.I. TAKIRON Group Integrated Report 2019

Success Built Over a Century by
C.I. TAKIRON

we have continually provided beneficial value and services to society andindustry, and we are honored to have built good mutual relationships
with customers who have come to adore C.I. TAKIRON.

I was appointed President, Representative Director, and COO in April

In the construction industry for example, these customers have a habit

2019, which is the third year after C.I. TAKIRON was established. Theof calling on Takiron for corrugated sheets. Our former company name

Chairman and CEO will strive to improve corporate value including

had become synonymous with this one product line. This crystallized

governance and management quality, and I will lead overall businessour broad track record in responding to the expectations of our custom-

management and execution.

ers. The unflinching perseverance of our predecessors is the foundation

In 2019, we celebrated the 100th anniversary since our founding inbehind this broad track record. We must show our respect to those who

1919 as Takigawa Celluloid Plant, which is the original form of Takiron.

came in the past to create our current status and grow our organization

We will continue to step up to challenges in order to contribute to theinto a 100-year old company.

sustainable development of society by not resting satisfied with the posi-

We recognize our great responsibility to live up to the expectations ofsociety and pass the fruits of our labor down to the next generation astion we have solidified over the last century.

the people expanding an organization given to us by the passion of those

The ability for the businesses of C.I. TAKIRON to persevere for 100

who came before us.

years is evidence our company has always been providing the goods andservices required by society. Even if each of these contributions is small,12

C.I. TAKIRON Group Integrated Report 2019

COO Message

Perseverance Beyond theCentury

The C.I. TAKIRON Group continues tostep up to challenges in an effort to contribute to
the sustainable development of society.

Representative Director President & COO

Kazuya Saito

Solutions toSocial Issues through Businessproduct that needed to be replaced annually in the past. However,through the technological advancement of C.I. TAKIRON, we have beenable to introduce a more durable product that lasts from three to five

We have defined our mission as the duty to create a people- and earth-years. We are working to reduce the amount of waste plastic that is pro-friendly future through plastics technology. We are proud to have brought

duced by developing products that extend this durability to seven or eightprosperity, comfort and convenience to peopleʼs lifestyles through plastics

years. Furthermore, with the cooperation of JA agricultural cooperatives

technology for so many years based on this mission. C.I. TAKIRON has

and agricultural representatives in each region, we also help to ensureof course provided environment-friendly products and services to manya system to collect used greenhouse films and properly dispose of thecompanies in addition to plastic products that prevent environmental pol-plastic. In addition to these types of examples for reducing waste plastic,

lution, but we have also helped find solutions to social issues throughwe are also advancing the volume reduction and resource recycling ofbusiness.

waste plastic, such as developing sheets that use raw recycled materials.

For example, we have provided various seating materials to the market

The 2020 Tokyo Olympics are attracting a lot of attention. As is widelyfor many years that prevent difficult-to-dispose waste and contaminants

known, the major urban infrastructures we have today were rapidly con-from seeping into the ground as a plastic product manufacturer withstructed for the previous Tokyo Olympics that were held more than 50

deep ties to the infrastructure business.

years ago. The degradation of the infrastructure built at this time has

C.I. TAKIRON has also striven to further the lifespan of products.

become a major social issue. As a countermeasure, I believe many people

For example, greenhouse films used in agriculture were a mainstream

turn to the renovations to renew sewage piping. Our group company,

13

C.I. TAKIRON Group Integrated Report 2019

COO Message

TAKIRON ENGINEERING provides the Field Fabricated Tube-Steam (FFT-S)

as usually because the business fields of construction materials and envi-

Method for the refurbishment of sewage piping. FFT-S is a constructionronmental materials at C.I. TAKIRON are in relatively mature industries.

method for renewal that introduces special materials made from glass

The Japanese market is also faced with a declining population. For exam-fibers into aging pipes to harden them with steam rather than replacing

ple, the number of housing starts has dropped to 56% today compared

the existing piping. This method refurbishes social infrastructure without

to the peak since the Heisei period (1989-2019) in 1990. C.I. TAKIRON

producing waste from the old piping. This is an example of exactly how

has already grown a wide range of businesses in the housing field, butbusiness helps to solve an issue in an environment-friendly society.

further expansion is impossible by simply sitting and waiting to see what

To combat climate change, C.I. TAKIRON provides a broad line-up of

happens. Stepping up to new challenges is vital. I myself take every

environment-friendly products in the polycarbonate building materials

opportunity I can to advocate innovation as the reason for manufacturers

business, such as the Lume Carbo large polycarbonate plastic panels

to exist. The continued work of our employees to conceive new ideas,that drastically limit heat loss through superior heat insulation and nat-take actions and take on challenges can become a major pillar supportingural polycarbonate materials to reduce energy consumption throughout

new growth while cultivating a path to drive C.I. TAKIRON forward into

entire buildings.

the future.

On the other hand, marine pollution caused by microplastics has

C.I. TAKIRON has four segments in its area of business, but sustaining

become a major issue worldwide in recent years, and accordingly, plastic

our current position is not enough. We will actively approach the businessis seen as an issue that has similar adverse impact on the global environ-fields where we can see major innovation in the future because these arement as waste plastic. However, this type of modern social issue may not

the areas that still have great potential for growth. For example, AI today

become the core problem with appropriate use under proper manage-is advancing self-driving vehicles and the motorization of power trains.

ment. We still have to navigate a complex web of ideas as we determine

There is also great interest even in the mobility field, such as automobiles

what can be done and how to do it.

and aircrafts, which are attracting attention as a growth industry in the
future. This is one field that we will transition to.

C.I. TAKIRON has built a 100-year track record of contributions to environmental and social infrastructure. Our mission to help will remain thesame in the next century to come as well. We will develop technology
and products which play a role in conserving the global environment andFY 2018 Resultsbuilding social infrastructure while furthering proposals toward the resolution of social issues through our business.

In fiscal 2018, the second year of the medium term management plan,
we consolidated production sites of polycarbonate building materials,
began the reorganization of Group companies in the environmental materials business, maximized integration synergy, and implemented measures

Overview of theMedium-term Management Plan

to strengthen the growth and profitability of the entire Group while
focusing our strengths on establishing avenues of growth to achieve our

The Good Chemistry Good Growth 2020 medium-term manage-fiscal 2020 targets. As a result, we were able to outperform the previous

ment plan drafted in unison with our corporate merger was formulated

fiscal year with 150,650 million yen in net sales (up 1.9% year-on-year),by reflecting the ideal form of the C.I. TAKIRON Group in 2020. Before

9,080 million yen in operating profit (up 8.6% year-on-year), and 9,200

the merger, Takiron and C.I. Kasei had almost the same level of sales.

million yen in ordinary income (up 12.1％ year-on-year).

However, the significance of the merger goes beyond simply adding the

When looking at each of the four segments independently, therevenue streams of these two companies together like ʻ1+1=2ʼ. We must

Construction Materials Business, Environmental Materials Business andset our sights higher so that ʻ1+1ʼ can grow to equal 10 or even 100 in

Specialty Film Business showed steady year-on-year growth. However, theorder to expand our businesses in the next century. Therefore, we haveHigh Functional Materials Business saw a drop in sales of our mainstay

set quite ambitious targets for 2020, but I do not believe these goals areindustrial plates due to the impact of declining semiconductor and FPD
capital investment while various engineering plastics and acetate mate-unattainable.
However, we cannot expect to simply expand our reach doing businessrials boomed. The High Functional Materials Business as a whole was

14

C.I. TAKIRON Group Integrated Report 2019unable to cover this decline and fell below the performance of the pre-mission to create a people- and earth-friendly future through plastics

vious fiscal year.

technology. I believe our mission for the next century may remain the

In the future, C.I. TAKIRON will further enhancements of profitability

same because everything that should be shared is epitomized in this mis-in business divisions with lower earnings by of course expanding businesssion. Moreover, I believe our ideal form is a company that is able to create

regions but also broadening business scale and earnings through active

and provide the value necessary to accomplish this mission. We have set

injection of management resources in growth regions and integration

four points of value that C.I. TAKIRON must create and provide: safetysynergy as well as the introduction of restructuring projects with the aim

and security, comfort and peace of mind, resilience, and the environment.

to reach the targets set out by the medium-term management plan.

I feel I must broadcast a message about actively creating value to not only
our employees but also our business partners, shareholders, and various
other stakeholders.
(P. 20-21 Value Creation Process Chart)

Vision for the Ideal form of C.I.
TAKIRON in the Coming Century
The C.I. TAKIRON Group will start anew by stepping into the next 100

Priority Issues of the
C.I. TAKIRON Groupyears from 2020. First, to give shape to our long-term vision, we will
incorporate a structure in a new medium-term management plan thataims to resolve the challenges close at hand that must be overcome to

When executing our mission at a business level, it is indispensable torealize our ideal form.

determine the priority of the almost infinite number of challenges we face

I want to emphasize a direction that propels us toward this ideal formand steadily address each one. Under a new management system, wethroughout C.I. TAKIRON. The foundation for this drive must be ourhave defined new priority issues (materiality) for the C.I. TAKIRON Group15

C.I. TAKIRON Group Integrated Report 2019

COO Message

as a guide to accomplishing our mission.

manufacturer.

Our materiality encompasses four themes: (1) the source of corporate

As to respect of individuality in our second theme, we will advocate

growth, (2) the respect of individuality, (3) our responsibilities to society,diversity promotion. Securing diverse human resources is an essentialand (4) the management platform.

element to both human resource development and corporate growth

As to the source of corporate growth in our first theme, we will strive

underpinned by a society highly focused on the respect for individuality

to cultivate a corporate climate supporting value creation and evolve plas-

as the working population declines due to the acceleration of an aging

tic processing technology. The corporate climate and culture contribute tosociety with a declining birthrate. Taking full advantage of individuality

the growth of the organization and is the foundation to gain the backing

that comes along with wide-ranging values is a source of competitive-of society. We will promote value creation at the C.I. TAKIRON Groupness and helps create lasting corporate value. With this in the backdrop,using this as the central axis. Plastic processing technology will strengthen

C.I. TAKIRON formulated the Better Life Management Declaration in

the competitiveness of the C.I. TAKIRON Group while helping address

April 2019. We will heighten our reputation with those looking in at C.I.

social challenges by furthering the potential of plastics through even

TAKIRON by communicating inside and outside a company our respect

more polished technology, which is our mission and pride as a plastics

of individuality and the support of the employees who shall respect

16

C.I. TAKIRON Group Integrated Report 2019individuality as a declaration while publicizing future initiatives and the

ESG management does lead to the realization of a sustainable soci-results and success of those initiatives.

ety, but it must also pursue the sustainability of the C.I. TAKIRON Group.

The third theme is our responsibilities to society. As measures toward

Therefore, human resources are paramount. The Better Life Management

the protection of the global environment advocated in our corporate

Declaration shapes our belief that a better life for each and every

philosophy, we will focus on our responsibilities to the environment andemployee becomes the source of corporate growth. The three pillars ofhave selected handling of marine plastic pollution, promotion of CSR pro-this declaration are support for diverse work styles, support for purposeful

curement, reduction of the environmental impact, and the expansion ofwork, and support for better health. We have strengthened a welfare andenvironment-friendly products as core areas of focus. Even among thesebenefit system that can adapt to work styles according to the life stage

core areas of focus, marine plastic pollution is an urgent social issue thatof each employee by putting in place a workplace environment where

was discussed at the G20 held in June 2019 and an inevitable issue thatanyone can work enthusiastically.

must be addressed as a plastics manufacturer. Using initiatives to address

The company will provide a work-friendly environment while expect-these priority issues as an opportunity, we will work in activities to raise

ing the highest level of employee performance. We established the Ideal

greater awareness about the necessity and potential of plastics in society,

Human Resources: Communicate, Commit, Be Proactive, Take Initiative,

which is also the responsibility of an organization that has plastic products

and Drive Forward framework as the next step to the Let's Talk More proj-

as its core business.

ect that promoted the integration of the two companies at an employee

As to the management platform in our fourth theme, we will improvelevel right after the management integration. If everyone keeps in mind

the proficiency of our response to comprehensive compliance andthis ideal human resource framework as well as the mission and manage-

risk management as well as enhancements to corporate governance.

ment philosophy of the C.I. TAKIRON Group, we will always live up to theCompliance and risk management always require a high-level of man-

expectations of our customers and ourselves become the ideal humanagement and operation even from the perspective of defensive corporate

resources who are able to act as an advisor to customers who know tomeasures. We will numerically breakdown and systematically manage thecome to C.I. TAKIRON when confronted by an issue. I expect everyone toprogress of these initiatives and the level of penetration throughout thestep up to challenges with a sense of ownership.

organization and share our findings both internally and externally to earn

I want all of our employees to be happy and healthy while enjoying

the trust of our stakeholders and improve the loyalty of our employees.

their work. The Better Life Management Declaration is the multifaceted

In recent years, ongoing scandals have shattered the fundamental trust

support to reach this goal. The ideal human resources expected to con-for Japanese organizations. Under this greater scrutiny, strengthening

tribute to society from a work-friendly environment through this support.

corporate governance is vital to not only reduce the comprehensive andI believe that if we achieve both, the company can grow.

Group-wide risk but also for investors and other stakeholders to properly(P.34-37 Personnel and Human Resource Development)

assess the organization.
(P.22-23 Priority Issues {Materiality})

Our Responsibilities
I am confident that we can continually provide new value to our lives inFostering Sustainable Growth

the future by properly managing plastics throughout the entire life cyclefrom raw material procurement to disposal in order to generate new life

The C.I. TAKIRON Group promotes not only financial value as a pre-for plastics as a resource.

requisite to priority issues in the execution of business, but also ESG
management that incorporates environmental, social, and governance

The C.I. TAKIRON Group promises to fulfill its responsibilities as a

aspects into the management foundation. We actively utilize various

member of society in the next century as it did in the past century byglobal frameworks for reference, such as the Sustainable Development

sincerely addressing various social issues and remaining a company that

Goals (SDGs) adopted by the United Nations in 2015, in an effort tocreates a people- and earth-friendly future through plastics technology

fully incorporate solutions to social issues into the C.I. TAKIRON Group

together with everyone.

businesses.

17

C.I. TAKIRON Group Integrated Report 2019

Medium-term Management PlanIn FY2018, the second year of the medium term management plan, we consolidated production sites of polycarbonate
building materials, began the reorganization of Group companies in the environmental materials business, implemented
measures to strengthen the growth and profitability of the entire Group based on the basic management policy ofthe medium-term management plan set to end in fiscal 2020, while focusing our strengths on establishing avenues ofgrowth to achieve our fiscal 2020 targets.

Basic Management Policy(1) S trengthen market
competitiveness(2) C reate new business anddevelop new products(3) Pursue beneficial
effects of the merger(4) E xpand existing
business domains(5) Increase asset
efficiency(6) Create a newcorporate culture

Management Vision and the Road Map
Contributing to society as the industryʼs leading company by taking on
new challenges and continually implementing plans

Management Vision

FY 2018

FY 2019

FY 2017

Launch of C.I. TAKIRON Group

Leading Companyof the Industry

FY 2020100th Anniversary

New Sectors

Expand to new sectors by actively participating inindustrial reorganization and M&A

Expand business domains and future corebusinesses

Growth Sectors

Expand and strengthen business through capital
investments

Expand the scale of existing
business domains

Mature Sectors

Enhance market competitiveness through structuralreforms and a synergistic effectStrengthen
profitability

Management
Foundation

Reinforce the management foundation throughhuman resource integration and vitalization as well
as spiritual awakening and operational efficiency

Support business expansion

Four-year Medium-term Management Plan (FY2017-FY2020)18

C.I. TAKIRON Group Integrated Report 2019

Management Target
Index

Management Target
FY 2020

FY 2018

Main Measures¥150.7 billion¥180 billion●

Expand to growth sectors●

Enhance differentiation and added value

Consolidated Operating Profit¥ 9.1 billion¥12 billion●

Reduce production costs●

Reduce sales and administration costs

Consolidated Net Profit¥6.4 billion¥7.5 billion●

Expand operating profit

Consolidated ROA

4.6%

4.5％

●

Improve resource efficiency ● Select and concentrate businesses

Consolidated ROE

8.8%

9.5％

●

Expand profit

Capital-to-Asset Ratio

57.6%

45％

●

Financial strategy

Consolidated Net Sales●

Invest in superior businesses

Growth Strategy
Accelerate growth through active injection of management resources without sacrificing the growth strategy.
¥
Sales (Millions of Yen)
200,000

150,000

15 billion

New Sectors●¥180 billion¥150 billion¥

30 billion

Growth Sectors●●

100,000¥

135 billion

50,000

0

2017

2020

(Fiscal Year)

Actively participating in industrial reorganization
Endeavor in new businesses through M&A
Acquire businesses as future core businesses

Drive integration synergy
Actively inject management resources
Expand and strengthen existing businesses worldwide

Mature Sectors●

Restructure existing businesses
Improve competitiveness through increased production andsales efficiency●

Reform the management foundation of existing businesses
Improve productivity through human resource integrationand vitalization as well as operational efficiency

Strategic Investment
The cash flow obtained over four years from fiscal 2017 to 2020 is applied to strategic investment, growth investment,
and a return to shareholders in addition to the standard capital investment. The remaining cash is held internally for
future investments.
Amount of Strategic Investment

10 billion

Investment in new sectors (M&A)
M&A is positioned as an important strategy to expand the business scale and for active investment in excellent opportunities that provide greater medium and long-term corporate value.

8 billion

Investment in growth sectors (development/increased production)
Active investment in growth regions strengthens market competitiveness and expands themarket share through development and increased production capabilities.

4 billion

Investment in mature sectors (restructuring)
Investment to heighten efficiency and streamline mature sectors optimizes people, equipment,material and the value chain as well as improves productivity and strengthens cost competitiveness.

New Sectors

Approx. ¥Growth Sectors

Approx. ¥Mature Sectors

Approx. ¥We will secure an investment scope of approximately ¥22 billion over four years in new, growth and mature sectors.

19

C.I. TAKIRON Group Integrated Report 2019

Value Creation Process Chart
C.I. TAKIRON Group aims to contribute to greater sustainable development of society by generating value throughproducts and services that contribute to solutions to social issues in the hope of realizing its mission to create a peopleand earth-friendly future through plastics technology.

Mission and Business Model of C.I. TAKIRONManagement
Philosophy

Financial capital
age
ess
M
te
ra
po
r
Co

Manufacturing capital

Sta
tem
en
t
ent
elopm
Dev

Ma
rke
tin
g

Plastic Processing Technology

sales Services Tech

Product Development and Design Capabilities

tio n

Customers First
Trusted Relationships with Business Partners

nolo

duc

Value Chain

Human capital

Five Strengths

After-

Intellectual capital

Pro
cu
re
m
e

nt

h&
arc
se
e
R

gi c

Climate Leveraging Individuality

Pro

Input

al G
ui d
an

c

e

Social capital
Sale sNatural capital

Code of Conduct

Corporate GovernanceCompliance
Risk Management

Social Issues
Increasing frequency and intensity of natural disasters
Diversity of lifestyles●

Pursuit of convenience and prosperity

Growing complexity of labor issues●

Decline in the working population●

Labor shortages●

Working environments

Aging society and declining birthrate

20

Diversity

C.I. TAKIRON Group Integrated Report 2019

OutputSource of Corporate Growth●

Cultivation of a corporate
climate supporting value
creation

Respect of Individuality●

Promotion of diversity●

Medium-termManagement
Plan

Better Life Management
Declaration

Agricultural materials,
binding materials,
infrastructure materials,
civil engineering products,
liquid chemical tanks, etc.

High Functional Materials Business

Evolution of plastic
processing technology

Environmental Materials Business●

Construction Materials Business

Materiality

Polycarbonate building materials,
housing materials,
piping and pluming equipment,
flooring materials,
decorative materials,
evacuation and derivative
products as well aswater damage prevention
materials, etc.

Plastic plates,
machining materials,
micro motors,
magnetic materials, etc.

Outcome●●Realization ofa rich living
environment●

Enhancement oflifestyleconvenience●

Prevention andmitigation ofdisasters●

Revitalizationand enhancementof social
infrastructure●

Coexisting withsociety and theenvironment

Responsibilities to Society●

Handling of marine plastic
pollution●

Promotion of CSR
procurement●

Reduction of environmental
impactExpansion ofenvironment-friendly
products●

Comprehensive complianceand risk management
response
Enhancement of corporate
governance●Specialty Films Business

Management Platform●

Heat-shrinkable films,
zippers, etc.

Constraints of resources and energy●

Handling of marine plastic pollution●

Unstable agricultural production●

Enhancement ofagricultural
productivity●

Resource andenergy savings●

Decarbonization●

Reduction ofwaste

Safety andSecurity

Comfort andPeace of Mind

Resilience*

Environment*Ability to respond to and recover from social difficulties
and crises such as natural disasters and social infrastructure

SDGs

Deterioration of the global environment●

Sound,
prosperous
development of
national lands(Sustainable Development
Goals)

Sustainable Development
Goals (SDGs) are internationaltargets set from 2016 to 2030
included in The 2030 Agenda
for Sustainable Development
adopted at the United Nations
Summit in September 2015.

21

C.I. TAKIRON Group Integrated Report 2019

Priority Issues (Materiality)
The C.I. TAKIRON Group is expanding business activities according to its mission to create a people- and earth-friendly
future through plastics technology. Particularly in recent years, society faces drastic changes while environmental issues
become even more severe.
Marine plastic pollution is an especially compelling issue close to C.I. TAKIRON.
In this type of business environment, the C.I. TAKIRON Group has defined priority issues (materiality) that theorganization should prioritize in its initiatives based on the Sustainable Development Goals (SDGs) via the processdescribe below.

Process to Define Materiality1 Identify and organize

2

potential materiality
items that should beconsidered Create a materiality

3

matrix by prioritizing andweighting each potential
materiality itemD efine the materiality
through a management
review

Importance to Stakeholders

Extremely High

㉒

⓱⓲⓳
⓴㉑

123
456
789
⓾

㉓㉔㉕
㉖㉗

⓫⓬

㉘㉙㉚

⓭⓮⓯
⓰

High

Importance to the C.I. TAKIRON Group

C.I. TAKIRON received feedback from each business division throughout the Group about potential
materiality items while always keeping in mind its corporate philosophy as well as international
standards such as the United Nations Global Compact, the SDGs, the ISO 26000, and the OECD
Guidelines for Multinational Enterprises.
Next, we referred to various keywords and social trends about the social and business environment
surrounding the C.I. TAKIRON Group and its stakeholders to examine how to engage in each issue
in the future, such as the way in which to create corporate value, from the perspectives of risk andopportunity as well as the pros and cons in order to define a list of 30 potential items for materiality.

We prioritized and assigned weight to each item from a medium- to long-term perspective related
to the importance, impact and the creation of corporate value for the C.I. TAKIRON Group and its
stakeholders founded in quantitative and qualitative internal assessments and the advice of external
experts about the list of 30 potential materiality items in order to create the materiality matrix below.

We internally formulated an accurate mesh that indicates the correlation between each item witha high importance and priority in the materiality matrix, and then ordered each of these items byreferring to the opinions of external experts, the SDGs, feedback from shareholder meetings, andexternal CSR questionnaires in addition to other information.
We also refined the materiality to emphasize and prioritize as a corporate group after consideringchanges to the corporate structure, such as the management integration, as well as environmental
issues at the forefront of today. Finally, members of management reviewed the potential materiality
items refined throughout this process to determine the final ten materiality items.

1 Better Life Management Declaration 2 Strengthen human resource development
3 Eradicate occupational accidents 4 Promote diversity 5 Promote the active participation of women
6 Promote the active participation of disabled persons, senior citizens and foreign employees
7 Evolve plastic processing technology 8 Expand environment-friendly products 9 Handle marine plastic pollution⓾ Reduce and recycle waste ⓫ Cultivate a corporate climate supporting value creation ⓬ Enhance quality assurance systems⓭ Provide attractive and distinct (special) products and services ⓮ Improve customer satisfaction⓯ Strengthen trusting relationships with customers ⓰ Strengthen sales power (problem-solving capabilities)⓱ Reduce the environmental impact ⓲ Reduce the environmental impact throughout the entire value chain⓳ Engage in comprehensive compliance and risk management response⓴ Promote CSR procurement ㉑ Enhance corporate governance ㉒ Combat climate change㉓ Ensure disaster response and create a Business Continuity Plan (BCP)㉔ Disseminate information and engage in a dialogue with stakeholders㉕ Implement chemical substance management and regulatory compliance (RoHs, etc.)㉖ Ensure harmony with local communities ㉗ Promote social contribution activities ㉘ Expand use of renewable energy㉙ Pursue globalization ㉚ Forge academic-industrial alliances and provide academic support

Extremely High22

C.I. TAKIRON Group Integrated Report 2019

Materiality Defined by C.I. TAKIRON
Below are the ten materiality items defined by the process outlined on page 22 alongside the relevant Sustainable Development
Goals (SDGs).
In the future, we will engage in various activities by setting quantitative and qualitative goals (KPI) while incorporating advice
from third-party experts about each materiality item defined by C.I. TAKIRON.
Third-party experts and employees also review the results through the PDCA cycle.
Moreover, we review relevant materiality in the event of new changes to the external and social environment.

Category

Source ofCorporate Growth

Relevant Sustainable Development Goals(SDGs)

Materiality Item
Cultivate a corporate climate
supporting value creation
Evolve plastic processing technology

Promote diversity
Respect Individuality
Better Life Management Declaration

Handle marine plastic pollution

Promote CSR procurement
Responsibilities toSociety

Reduce the environmental impact

Expand environment-friendly productsManagement
Platform

Engage in comprehensive compliance andrisk management response
Enhance corporate governance23

C.I. TAKIRON Group Integrated Report 201901

Business Summary by Business Division

Construction Materials DivisionMarket Environment
We can expect short-term demand in the construction materials market in Japan due to new construction for the Tokyo 2020 Olympics in addition to even greater needs for infrastructure at the Osaka
Expo 2025. In the long term, the number of new housing construction projects will drop below one
million homes due to a declining Japanese population, and it is forecast to drop as low as 600 to 700
thousand homes by fiscal 2030. On the other hand, the market for renovations for the elderly aswell as housing renewals is expected to grow in the future. In these types of market environments,
construction materials must respond to the product requirements of residential renovation markets
while expanding to large markets overseas. Furthermore, to adapt to market environments worldwide,
construction materials must also pursue waste reduction through recycling.

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

Akihiro Ueda

Achievements and Challenges
The housing materials business has increased sales by strengthening sales power as well as handling the

The Construction Materials Business handles
housing material products to support comfortable housing and urban development centered
upon housing materials, piping and plumbing
equipment, and engineering materials, polycarbonate building lighting material products withsuperior characteristics from shock resistance,lightness, and lighting to weatherproofing in
addition to flooring material products to support comfortable living on the feet, cosmetic
film products with a great tactile feel to use fordecorative interiors and exteriors of buildings,
and disaster prevention products to contributeto the prevention and reduction of disasters.
We of course provide safety and durability
but also support comfortable living environ-recovery from typhoon damage via comprehensive Group sales of polycarbonate building material products.
The flooring and decorative materials business was unable to reach the level of sales during the previous year in the flooring division due to delays in condominium renovation work caused by typhoons
and torrential rain storms. As a result, the Construction Materials Business segment showed net salesof 48,502 million yen (up 3.7% year-on-year) and an operating profit of 3,458 million yen (up 4.9％
year-on-year).
In regards to the challenge to expand overseas, we will further strengthen growth to Europe, theUnited States, China and Asia. In terms of environmental issues, we will promote the reduction ofplastic waste by delving deeper into recycling technologies that reuse waste plastics.

ments and urban spaces close to people in theconstruction field where aesthetics, comfort
and a co-existence with society and the environment are essential.

Picture of Polycarbonate Folded Plate Installation (Ceiling section)“Jet Line” Siphon Rain Gutter System“Rain Save N” Rainwater Storage and Infiltration Tank

“Amaoto-kun” Rainwater Storage Tank

Picture of the Lume Wall
Hollow Honeycomb Polycarbonate Installation

24

C.I. TAKIRON Group Integrated Report 2019

Business Summary by Business Division

Priority Measures for Future Growth
Measure (1) Strengthen Business Infrastructure in the Polycarbonate Building Materials Business
Polycarbonate construction material products are the core product of the polycarbonate building
materials business. These products support the infrastructure to build a low-carbon society in theenvironmental conservation field, such as providing a high level of natural light and heat insulation as
well as offering energy savings and a light-weight alternative to glass.

Slip-resistant Flooring Material
with Foam Layer to Reduce theRisk of Accidents Due to Falling
C.I. TAKIRON introduced technology from America
in 1973 to begin the production of slip-resistantflooring. We have already built a more than 40-year

Up until today, three Group companies had been independently charged with the sale of theseproducts. However, C.I. TAKIRON has consolidated the sales structure through an absorption-type splitof these respective businesses at NIPPON POLYESTER CO., LTD. and DAINIPPON PLASTICS CO., LTD.

history refining slip-resistant flooring since the adoption of this technology, such as stain proofing andheat insulation properties. The Plus Care series
offers a new flooring material that drives excellent

for the purpose of fully optimizing management resources. We have even consolidated the production

safety performance in addition to the superior anti-

system for these products to the Ibogawa Plant and centralized the development, production and sales

wear performance provided by the inlaid structure

processes to strengthen the foundation of the polycarbonate building materials business. C.I. TAKIRON
will also promote new product development of highly heat insulative and airtight polycarbonate build-and the shock absorption performance provided by
the foam layer (three-series expansion for condominiums, pool sides, and facilities for infants). As an

ing materials with an expectation of growing demand in the future due to the expanding scope of theaging society progresses in Japanese society, theBuilding Energy Efficiency Act.

importance of preventing accidents due to falling
grows. One in every three elderly persons is said to

Measure (2) Penetrate the Condominium Market with New Flooring Material Products
Takistron WB slip-resistant flooring material is a slip-resistant flooring material dedicated to condominium balconies that replicates a genuine wood grain pattern without sacrificing the conventional
durability through a transparent resin layer (clear inlaid structure) with superior weatherproofing andexperience at least once fall each year. Unforeseen
accidents due to falling has surpassed the numberof traffic accidents to become the second highest
type of accident just below suffocation.
This flooring material product can reduce the riskof injury in accidents due to falling.

wear resistance. We will actively further sales of this slip-resistant flooring material for balconies as a wood
pattern flooring material that is able to offer durability unseen in conventional printed pattern materials.
In addition to the durability offered by the conventional Takistron product, we have also developed Extra
Care PGE that utilizes a layer of foam vinyl chloride to improve safety in the corridors of condominiums.
As a slip-resistant flooring material with a foam layer that can be used outdoors, Plus Care PGE will create
a new category that combines durability and safety in a material for condominium corridors.

Measure (3) Develop New Decorative Material Products and Expand Overseas Market

Plus Care Series

Belbien is a series of architectural, decorative adhesive films. C.I. TAKIRON developed Belbien Plastics
as a completely new product line in the Belbien series that realizes infinite possibilities by combining a
new embossment with monotone colors from pure white to jet black to achieve unique texture. The
product offers a detailed sculpture-like embossment of light and shadow on the surface to offer a distinct
texture to walls with neutral colors. This new product line will help further expand the Belbien series.
Even in Europe, the United States, China, and Asia, we aim to further expansion by responding
to customer needs in each area. We will actively work to migrate to environment-friendly products
worldwide while utilizing and commercializing recycled materials into the mainstream.

Lightweight Waterproofing Panels
to Protect Valuable Assets from
Flood Damage
These panels provide high cut-off performance
proven to have no more than 1L/h-m2 of leakage
even at a 1.7 m/s flow velocity.
A maximum water depth of one meter supports
even broad openings, such as entrances to underground shopping areas, by using the intermediatematerials as shown in the picture. These panels are
so light that they can even be carried by one person.

Picture of
Belbien+
TEX Installation

25

Flood Safe PanelC.I. TAKIRON Group Integrated Report 201902

Business Summary by Business Division

Environmental Materials DivisionMarket Environment
In the agricultural market, fewer and fewer people are willing to bear the agricultural responsibility
as the Japanese population decreases, increasing farmlands left abandoned and increasing the pressure to open markets from overseas.
Furthermore, although the civil engineering market is propped up by demand such as reconstruction from disasters, preparation of new infrastructure for the Tokyo Olympics, and measures to counterthe aging of existing infrastructure, the changes in domestic demand is expected to progress because
the gap between urban and rural civil engineering becomes greater due to labor shortages and rural
impoverishment.
In these various market environments, the agricultural market intends to increase the number

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

Takahisa Miyake

of farming families, create greater added value as well as yield of agricultural goods and improve
productivity. In the civil engineering market, we expect a shift in demand toward the renewal andmaintenance of highways, tunnels, sewage systems and other such infrastructure.
In emerging markets centered upon the ASEAN region, medium- and long-term plans for large-scale

Markets in Japan face a harsh business environment from the spreading impact of anaging society with a declining birthrate to thepressure of opening markets from overseas.
However, in the agricultural field, we are furthering the high functionality of agricultural
goods, improvements in productivity, and links
between agriculture businesses and welfare in
addition to other new efforts. In the civil engineering field, we are also expanding new social
needs that include the maintenance and refurbishment of decrepit social infrastructure.
C.I. TAKIRON hopes to continue its contributions toward the resolution of social issues
in Japan by discovering new needs for thetechnologies it has cultivated up until now.
Furthermore, we believe that our unique prod-development and investment projects have been proceeding via government initiatives and major corporations. A market formation expected to grow with acceleration in the future has been underway.

Achievements and Challenges
As a result of actions to recover from typhoon damage and the favorable shift in the business torenew sewage systems, the Environmental Materials Business segment showed the increase in bothsales and profit year-on-year with net sales of 62,388 million yen (up 3.2%) and an operating profit of
1,878 million yen (up 34.3%). In the agriculture business in particular, the increase in demand for agriculture covering films and greenhouses as well as other related materials drove business performancedue to disaster recovery response. In the infrastructure materials business, we saw an entire market
shift in a favorable direction even with delays in earthquake disaster reconstruction as well as road andtunnel projects because the sales of materials to renew sewage piping remained steady.

ucts such as highly functional agricultural films

Regarding the challenge raised about expansion into the emerging markets of East Asia and theand hydrophiric water sealing materials can also
contribute to the agricultural efficiency and the
preparation of infrastructure in ASEAN andother developing countries overseas.

ASEAN region, C.I. TAKIRON will strengthen initiatives to increase demand in local markets by utilizing
the technical capabilities and expertise cultivated in the Japanese market because building cooperative
relationships with local companies and government agencies is indispensable.
SKYCOAT K-5
Agricultural
Polyolefin Film

SKYCOAT T-5
Agricultural
Polyolefin Film
Suzuran Tape

SafetySprinkler Tubes

Example of Extension of Agricultural Polyolefin Film

26

C.I. TAKIRON Group Integrated Report 2019

Business Summary by Business Division

Priority Measures for Future Growth
Measure (1) Review of the Business Structure of the Environmental Materials Segment
C.I. TAKIRON executed a management integration of Group companies DAINIPPON PLASTICS CO.,LTD. and TAKIRON PROTECH CO., LTD. (current DAIPLA CORPORATION) as well as transferred someother businesses to other segments to maximize the medium- to long-term value provided to society

Field Fabricated Tube-Steam (FFT-S)
MethodAssisting in the Maintenance andLonger Lifespan of Urban Lifelines
Even while the coverage ratio of sewage sys-and the environment as a total value chain of the Environmental Materials Business. The new structuretems is improving throughout Japan, the number offurther concentrates efforts in the mainstay businesses of agriculture and infrastructure materials

broken and deteriorated sewage piping is growing

and more effectively operates development, manufacturing and sales processes. We will continue

due to factors such as aging. The deterioration of

to advance the optimization of the sales and manufacturing structure to flexibly respond to needs.

underground sewage piping also comes with highrisk related to roadway cave-ins and natural disasters, such as earthquakes, and requires regular

Measure (2) Increase the Agricultural Market Share in Japan and Expand Overseas
The agricultural business has built a production and sales system throughout the entire Group up until
now which has contributed to the evolution of agriculture in Japan with the expansion of new products

reconstruction and refurbishment to increase thelifespan.
However, pipe replacement by open-cut construction is difficult when considering the congestionthat respond to market needs. In the future, C.I. TAKIRON will continue to increase its share in Japan

of water, gas, electric and communication lifelines

and expand the scope of its business by pursuing high functionality and high quality products that are

as well as the obstruction of traffic.

right for modern times while enhancing efforts toward smart agriculture through Group collaboration.
Furthermore, East Asia and the ASEAN region are showing significant growth. The modernizationof lifestyles and a growing number of wealthy people are increasing the demand for safe and secure
agricultural goods, which in turn fosters growth in the agricultural market. In the future, we foresee
ongoing promotion of agricultural investment, which acts as a foundation for economic growth, ineach of these countries where the workforce is an abundant resource. Therefore, this business division
will consolidate the strengths of the Group around the agricultural business to the expansion of busi-

Therefore, in order to solve these social problems, TAKIRON ENGINEERING developed the FFT-S
Method (pipe renewal method) that requires noopen-cut construction.
The FFT-S method is proud to hold the top sharein small- and medium-bore sewage piping renewal
for municipals, and it contributes to an urban environment maintaining and increasing the lifespan ofvital social infrastructure.

nesses that contribute to agricultural and economic growth in each country.

Measure (3) Respond to Demand for Social Infrastructure Renewal and Expand Overseas
The infrastructure business expects demand to grow with the need for road and tunnel relatedmaterials due to the refurbishment of transportation infrastructure tailored to social needs, such asalleviating traffic congestion in major cities and the prevention of urban environmental deterioration(including demand generated by the 2020 Tokyo Olympics) as well as renewal work as countermeasures to disasters in order to increase the lifespan and high functionality of social infrastructure. We
will promote the expansion of the existing product lineup and the development of new products that
respond to these needs in the infrastructure business with the aim of further propelling progress bystrengthening these business regions.
We will penetrate and expand to new markets while also contributing to the preparation of infra-

Before Installation

structure and growth of the economy by supplying highly functional products that aid in productdevelopment and the preservation of urban environments that respond to local needs for large-scale
products in each Asia region where urban development is rapidly accelerating.
Sheet Installation
for Ponds

Sheet Installation for Ponds
to Cultivate Algae
Tokyo Gaikan Express way
Tunnel*After Installation
Tokyo Gaikan Express way
Tunnel Segment**Picture: Provided by Tokyo Gaikan Project27

C.I. TAKIRON Group Integrated Report 201903

Business Summary by Business DivisionHigh Functional Materials DivisionMarket Environment
Among intermediate materials centered upon plates, the demand for semiconductor production
equipment that had shown a favorable shift sharply decreased due to a decline in memory investmentin the second half of last year as well as uncertainty about the future caused by the United States-China
trade war. However, standardization of technologies such as 5G, AI, and IoT are expected to drive
further demand in the future for semiconductor production equipment. In this field, we will increase
production of the industrial plates that have earned trust over so many years immediately when thetime is right. Engineering plastics are expected to sustain growth thanks to expansion into a broad
range of fields, such as slide members of food processing machines. Thin polycarbonate plates showing
higher manufacturing and sales in the Chang Prefecture of China have been active even with the fluc-Managing Executive Officer
Chief Operating Officer of the High Functional Materials Div.

Toshio Tamaki

The High Functional Materials Business
Division is made up of the plate division thatmainly manufacturers and sells universal resins
such as PVC, PC, and PET as well as magnetic
materials, the ultra-compact motor division,fine particle processing companies and affiliatecompanies that handle engineering plastics andacetate. Distinct products with a wide rangeof functionality are expanding worldwide as aresult of continually stepping up to the highquality requirements of customers throughout
our long history. Even though these may beintermediate materials, we are in fact providing
the elements indispensable to the manufactureof semiconductor chips as well as crystal andorganic EL panels. By contributing to the development of state-of-the-art technologies such as
5G, AI, and IoT, we are creating the future.

tuations that respond to the smartphone demand. Markets around ultra-compact motors are changing
dramatically with a tendency toward an increase in various fields such as energy savings, safety andother on-board vehicles measures as well as servers and other information communication fields.

Achievements and Challenges
In the High Functional Materials Business segment, its mainstay product of industrial plates andrelated products were impacted by a decline in capital investments for semiconductor and FPDs. A
drop in sales began from the second half of the second quarter to bring the net sales to 18,935 million yen (down 3.0%) and an operating to 1,767 million yen (down 5.1%). In terms of production
however, we further reinforced capabilities through capital investments and productivity improvements in response to the shift toward a high-level demand since the year before last. C.I. TAKIRON
has also developed new products able to address market requirements, such as new transparent
materials for FPD manufacturing equipment. In terms of sales, we provided the right services to build
strong relationships of trust with our customers by gathering extremely detailed information fromusers worldwide through a robust supply chain. The High Functional Materials Business recognizes
the promotion of product development which can cultivate new applications through more advanced
functionality as a future challenge.
Motors are mainly used for the important drive sections of customer products. C.I. TAKIRON has
further enhanced the quality management structure, responded to advanced quality requirements
through sales and technology staff working in unison, and realized flexible customizations and atimely supply. We must pursue the next level of improvements for production efficiency to further
increase demand as well as increase production.

Highly Transparent Polycarbonate Plate (Used in Applications
such as Smartphone Covers; Handled by: TAKIRON PLASTICS(CHANGZHOU) CO., LTD.)
Anti-electricity Plate Series:
Sustaining Stationary Anti-electricity Functions

28

Engineering Plastic Appropriate for Superior Machining for
Crystaline PET Plates and Cylindrical Rod TP-PEX Sliding

C.I. TAKIRON Group Integrated Report 2019

Business Summary by Business Division

Priority Measures for Future Growth
Measure (1) Create a High-end World via Superior Composite Technologies: Laser Shielding Plates
C.I. TAKIRON aims to expand its business regions by executing the specific measures below in eachbusiness.
In the plate division, the sale of laser shielding plates that ensure safety of the human body by

FM Plate
Driving Unique Macromolecule
Technologies to Provide High
Added Value
The section introduces the TAKIRON plates thatshielding specific wavelength regions of laser beams has quintupled over the last five years to cultivate

customers have come to adore thanks to advanced

a powerful product. We view this area as an important strategic field. C.I. TAKIRON will bring together

composite and fabrication technologies. In 1954

laser processing machine manufacturers and expand sales routes to Europe, which is anticipated tobefore the management integration, Takiron began

become a major market, as well as sales routes into the United States in addition to Japanese market
by expanding product lineup responding to the demand of users.

manufacturing PVC plates at the Aboshi Plant,
which was a core plant of the company. PVC plates
have been widely adopted for signage, shop dec-

We will also take on challenges in new regions, such as aircrafts and mobility, by further heighten-

orations such as displays for the coloration ease,ing the fire resistance of plastic materials even in other applications through composite technologies.

and industrial applications such as plating equip-

Measure (2) Utilize Strong Relationships with Customers to Develop the Value Chain
In the plate division, C.I. TAKIRON will continue to maintain an effective supply chain and prioritize
trusting relationships with customers above all else while regularly conducting customer satisfaction
surveys for every product and service. We will then implement the following measures according to
the results of those surveys.

ment for the excellent chemical resistance. Today,
by leveraging the superior chemical resistance, PVC
plates are used for semiconductor wafer cleaning
devices and various other liquid chemical processing
apparatuses. In 1999, we developed and released
FM plates as the world’s first PVC material that
conformed to the FM standard. This product has
become a key product for C.I. TAKIRON today. FM

PVC plates have three-types of production equipment̶presses, continuous presses, and push systems. We will further enhance these products while optimizing the product lines. These enhancements
and optimizations will help improve the instantaneous force in response to increased production.
To improve customer satisfaction from a quality perspective, we aim to eradicate claims andcomplaints, migrating to the examination and execution of improvements in all processes from manufacturing and sales to inventory.

plates are a PVC plate material that possesses ahigh level of fire resistance in compliance with the
FM standard, which is a fire-resistance standard formaterials used in semiconductor plants formulatedby the American non-life insurance company Factory
Mutual (FM).
We will always strive forward by putting thecustomer first in the development of materials andproducts that pioneer the industry. Although con-

Measure (3) Enter New Markets with the Hidden Potential for Unlimited Growth
In the motor division, consolidation of management resources has become important in anticipation of future growth fields, such as robots and drones, as new targets. At the same time, we will

sumers do not come into direct contact with our
products, C.I. TAKIRON contributes to society as an
indispensable presence in the backdrop.

Semiconductor Wafer Processing Device Using FM Plates

always improve productivity and aim to generate even higher earnings.

Takisharon- Protect the Eyes (Retinas) and the Restof the Human Body from laser beams

Fire Safety Assessment of Materials Complying with the FM4910 Standard (Comparison with Regular PVC)
Combustion Test with a Cone Calorie Meter (Conformity to ISO5660, ASTM-E, 1354, and Other International Standards)

Ignites with a 10,000 V Electric Spark

Standard PVC Plate Ignites and Burns after 35 Seconds

29

FM Plate Carbonizes and Never Burns

C.I. TAKIRON Group Integrated Report 201904

Business Summary by Business Division

Specialty Films DivisionMarket Environment
Shrink films are used in applications around the world in an ever broader range of markets, whichis expanding the market scale with a growth rate of 3% to 4%. OPS, PET and PVC are used as materials, but we expect that worldwide demand will shift and grow to focus on PET-based products in the
future from an environmental response perspective. As actions to accommodate this shift, we are in
the middle of capital investments in North America to enhance PET films and plan to achieve the wide
introduction of environment-friendly PET films through our own proprietary manufacturing process atthe beginning of 2020.
Zipper tapes are also expected to see a roughly 5% to 6% market growth primarily in Japan, developing countries and North America. Japan requires quality centered upon processing convenience

Managing Executive Officer
Chief Operating Officer of the Specialty Films Div.

Hiroyasu Kawakami(low-temperature sealing, sealing speed, sealing base materials for multiple needs) when used in customer bag manufacturing. On the other hand, the rest of the world emphasizes design requirements
more and more, such as zippers making sounds and zippers that cannot be opened by children. We
aim to become a solutions provider that is able to supply both the convenience to the processing

Global One-Team and De-Facto Standard &BeyondWe produce and sell label shrink films andplastic zipper tapes to customers aroundthe world from Japan and the rest of Asia to
North and South America as well as Europe.
We promote the best global production andsales system around four key sites worldwide
while maximizing the production volume ofeach site for Japan, Asia as well as North andSouth America. We will further drive businessexpansion through a greater global share in
addition to pursuing added value beyond defacto standards at both BONSET and SANZIP
brands. Furthermore, we will not only address
the requirements to protect the global environment, but will also focus on next-generation

manufacturers and the designs desired by the end users.

Achievements and Challenges
The Specialty Films Business has remained steady together with the key products of shrink films
and zipper tapes thanks to stable demand in Japan and the rest of Asia in addition to Europe as well
as North and South America. As a result, the Specialty Films Business segment showed net sales of
208.24 million yen (up 3.2% compared to the same period last year) and an operating profit of 1,969
million yen (down 2.1% compared to the same period last year).
We are also approaching the requirements for environment-friendly plastic products from various
directions, including biodegradation, marine decomposition, biomass, recycling, and a transition tomono-materials. Any of these are at the initial stage of technical development in the supply chain. C.I.
TAKIRON has already established a recipe able to respond to any type of requirement and is ready andable to execute production at any time.

product development that aims to realize a
recycling-oriented society in harmony with theenvironment.

登録No.３２７
Certifying Body: Japan BioPlastics Association
No.327

No.180075
Certifying Body: Japan Organics Recycling Association
No.180075

These certifications have beenacquired for SANZIP tape.
The certification logos are for zipper
tapes that use a designated amountof biomass plastics.

BONSET/SANZIP Usage Examples

30

C.I. TAKIRON Group Integrated Report 2019

Business Summary by Business Division

Priority Measures for Future Growth
Measure (1) Follow the BONSET (Shrink Films) Grand Design
The first step of the Bonset (Shrink Films) Grand Design is to accelerate an optimal global production and sales system around three key sites worldwide in Japan, North America, and South America.
Initially, we will run all of our existing manufacturing lines at full capacity in Japan and engage in30th Anniversary of the BONSETAMERICA CORPORATION (BAC)
The BONSET (shrink films) born in Japan started
its production in the Unites States for the first timefrom Greensboro, North Carolina in 1989. In the

product development that anticipates the next-generation. Next, we will further the transition to PET

30 years since, we have steadily grown the plant inon PVC manufacturing lines as part of the restructuring of the production system in North America.

North Carolina as a PVC/PET films production and

By increasing the supply capacity of PET films, which are at the heart of demand, we aim to realizea short lead time and expand orders further in addition to the benefits of the high quality and quick

sales base for its foothold North America, Central
and South America as well as Europe and are proud
to have the highest production volume in the world

aftercare services that we have always provided. In this way, C.I. TAKIRON will accelerate its optimal

for a single plant. BAC has established a firm position

global production and sales system to establish a clear foothold as the top shareholder worldwide. The

to drive BONSET as the de facto global standard ofsecond step of the Grand Design will solidify and leave no doubt that we hold the top share worldwide
by establishing subsequent production sites to drive our share on a global basis beginning in 2025.

shrink films. In 2012, we also began Bonset Latin
America in Uruguay, South America to put in placea vertical production and sales system via Northand South America and built a door-to-door delivery
system focused on customers in South America. This

Measure (2) Follow the SANZIP (Zipper Tapes) Grand Design
The first step of the SANZIP (Zipper Tapes) Grand Design maximizes the production capacity at bothdelivery system was able to win the trust of customers. BAC then deepened cooperation with theplants in Japan and those in the rest of Asia. In Japan, we will maximize the production capacity by

Okayama Plant as a mother plant in Japan for efforts

fiscal 2019 and accelerate development of new and environment-friendly products as mother plants.

that included environmentally- sound products stan-In Asia, we will increase capacity by increasing the number of high speed manufacturing lines as well
as automating product warehouses by 2023. These efforts will improve our global share and earn us

dardized across these three key plants to build asystem able to more quickly supply BONSET as thede facto standard to all customers worldwide.

the position as the leading company in the industry. The second step to this Grand Design aims tofurther improve the global share and establish our position as the leading company in the industry bylooking into M&A in parallel with the first step.

Measure (3) Improve Product Development and Productivity
System Development
In the zipper sector, C.I. TAKIRON heightened the processability of zipper users and developed an
auxiliary equipment system for bag manufacturing under the name Vertical Drum Stand, which is able
to run the drum spun zipper con-Anniversary Party Celebrating 30 Years of Business at BAC

tinuously for long hours in order tocontribute to labor savings. These
innovations have made our zipper
tapes more efficient and easy touse. Sales have already started inJapan to earn rave reviews and thescope of sales is set to expand overseas in the future.

Productivity Improvements
In the production of BONSET
and SANZIP product lines, we will
horizontally expand technical capabilities and expertise to overseas
manufacturing sites through plants
in Japan as mother plants in an
Full View of BAC

effort to improve productivity while
simultaneously adapting to theBusiness Continuity Plan (BCP).

Vertical Drum Stand

31

C.I. TAKIRON Group Integrated Report 2019Technology, Research & Development

Creation of New Business and Development of New Products Bearing the Future

Research and development activities play a vital role in achieving value
creation at C.I. TAKIRON. While each business division addresses the themes
centered on strengthening existing businesses, the Research & Development
Department undertakes research around major themes across each businessdivision for dramatic advancement of our core plastic technologies as wellas themes that include completely new research and development. We are
actively working to create a people- and earth-friendly future in a form thatprovides attractive products and fosters new businesses entrusted with the
Director Managing Executive Officer
Chief Operating Officer of the Corporate Planning Div. &in Charge of the R & D Dept.

future by striving to integrate technologies with external entities as well as
grasp environmental and social needs.

Hideharu Iwasaki

Competitive Advantages (Strengths)

Important Strategies and Progress(1) C.I. TAKIRON has been expanding its corporate scale and business

C.I. TAKIRON takes full advantage of open innovation and concurrent

domains as a comprehensive plastics processing manufacture sinceresearch and development based on the “for tomorrow” keywords inthe management integration in April 2017. The synergistic effect will

the Good Chemistry Good Growth 2020 Key Success Factor (KSF) in thedrive us even in research and development.

medium-term management plan to not only forge new regions but also(2) C.I. TAKIRON utilizes advanced mix design technology, equipment

expand existing regions according to short-term development themes.

design technology, and fabrication technology to fabricate products

As the KSFs of market change, we have outlined measures that include

from films with a thickness of several microns to plates with thick-the standardization of AI and robots as measures to address an aging society

nesses of several dozen centimeters.

with a declining birthrate as well as a decrease in the working population,(3) C.I. TAKIRON holds the top share of products in a wide range of busi-

the use of IoT to facilitate a smart society, the creation of lighter and moreness regions through unique and superior material development, film

functional interior materials to help innovate electric vehicles, as well as hous-and sheet development with high added value and functionality, tech-ing that offers both economic and environmental benefits to evolve living

nological development for geometric designs, and the development of

spaces. As the KSFs of technical development, we are furthering medium- to

installation technology and new processing methods.

long-term development themes around our three core technologies for the(4) C.I. TAKIRON possesses the high-precision analysis devices and analysis

design of composite long-filament products, the design of specialty films

capabilities indispensable for development.

and sheets, and the design of composite nanomaterial products.

Ideal Form of Development<<KSFsof Technical Development>>≪技術開発の.6)≫● Design of Composite Long長繊維系複合商品の設計
filament
Products

New
Sectors
新規領域

fibers, etc.

●

Development based on the multi-

layering of core technologies as well
▣コア技術の多層化、延伸、圧延、架橋樹脂
改質技術などをベースにした開発
as extension,rolling and bridge (resin

healthcare,
ヘルスケア

modification) technologies, etc.

●

etc.

Design of composite
nanomaterial products.

Ⓡ▣&1)、ナノサイズ超微粒子材料「1DQR7HN□
Development using CNF and NanoTekⓇ 」などを活用した開発
nano-sized ultra-fine particle materials

Construction
建築資材
Materials

Specialty
Films

機能フィルム[Core Technologies]
Material Compounds,
Fabrication,
Evaluation Technology,
etc.

32

KF

コ
ン
カ
レ
ン
ト
Ｒ
＆
Ｄ



High Functional
高機能材
Materials

Environmental
環境資材
Materials

20

20

Gg

Gc

ow
orr

or

f
Ss

Concurrent R&D

オープンイノベーション
Open
Innovation

Construction
建築資材
Materials

automobiles,
robots,

自動車・ロボットDesign of specialty films and sheets□

Existing
Sectors
既存領域

Expansion to
例えばDevelopment using carbon and glass▣炭素・ガラス繊維などを活用した開発

□

m
To

LeadingCompany of
the Plastics
Processing
Industry

Environmental
環境資材
Materials
High Functional
高機能材
Materials
Specialty
Films
機能フィルム<<KSFsof Market Changes>>≪市場変化の.6)≫(1) Aging society and declining birthrate/decreasing working①少子高齢化・労働人口減少
population②スマート化社会、住宅建材の知能化(2) Smart society and creation of intelligent housing materials③自動車の(9化、自動車・ドローン・建機(3) Prevalence of electric vehicles/self-driving vehicles, drones
and construction machines
の自動運転(4) Evolution of living spaces and mandatory compliance to④住空間の進化、省エネ基準適合の義務化
energy-saving standards⑤ロボット市場急拡大(5) Rapid expansion to robot markets

C.I. TAKIRON Group Integrated Report 2019

New Product Topics

Research System(1) C uring Sheets for Blast Machining(Eco Clean Blast Sheet)

Our research and development activities aim to promote the cultivation of budding new businesses

The Recyclable Blast Coated Film Removal foras new growth engines and build businesses as new pillars of income through cooperation acrossLead and PCB Waste Reduction developed at the

departments in addition to the independent activities of the research and development as well as
product development departments.

Eco Clean Blast Research Association, an organization C.I. TAKIRON has joined as a member, waspresented the Minister of the Environment Award

Furthermore, project activities that link production and sales departments as well as partnerships
with affiliate companies promote the development of attractive products that respond to the needsof customers. These collaborative efforts also work in environment-friendly technical and productin 2018.
Blast methods are techniques adopted in construction to re-apply coatings on steel bridges by
first blasting a griding material onto the coateddevelopment based on the environmental preservation activities to address new social issues such as

surface to shave off and remove the old coating.

the marine pollution caused by microplastics.

However, the Recyclable Blast Coated Film Removal
for Lead and PCB Waste Reduction takes advantageof recyclable metal grit material as a grinding mate-

Convening New Product and Technology Presentations

rial that can be sorted and reused without grinding.

New Product and Technology Presentations primarily asks junior engineers to present the technicalThis blast method has been highly regarded forthemes that they have been working on at a venue to introduce and evaluate new products anddrastically reducing the industrial waste and finetechnology throughout the entire company once a year. These presentations accelerate research anddevelopment by encouraging technical and information exchanges shared within Group companies.

particles produced by conventional grinding materials in addition to reducing costs through the reuse.

(2) Development of the String Method
The String Method developed jointly by C.I.
TAKIRON and TAKIRON ENGINEERING received anindustrial technology award from the Osaka Industrial
Research Association.
*String Processing Method: This string processing method is apiping method that arranges an auxiliary ring (deformed bar)inside of existing piping to install as well as fit an LF panel(polyethylene surface material) and fastener (polyethylene surface fitting material) in the axial direction. A filler (high-flow,
high-strength mortar) is then injected into the gap between
the existing piping and the LF panel to create a highly strong
composite pipe integrated with the existing piping.

(3) D evelopment of Nutriculture System
C.I. TAKIRON developed an artificial light hydroponic cultivation system (unit) for plant factories,
which was exhibited at The World Food And
Beverage Great Expo (FABEX 2019).

2019 New Product and Technology Presentations Award Ceremony

Core Technology
C.I. TAKIRON hopes to provide specialty productswith advanced commoditization. In other words, wewill offer attractive products beyond conventional
quality standards in addition to providing value fromthe customer perspective with the aim of becoming
the leading company in plastic processing. Therefore,

Nutriculture System

we must pursue the potential of materials in a research
effort that ties to the development of a wide range offilm, sheet, and panel products that offer distinct features and characteristics. C.I. TAKIRON also strives in research to explore and combine materials as wellas integrate fabrication and peripheral technologies to improve added value. In addition, we also work
to analyze and evaluate the materials and elements molded in this research while enhancing the basetechnologies of the C.I. TAKIRON Group to help increase the quality of products.

33

C.I. TAKIRON Group Integrated Report 2019

Personnel and Human Resource Development

Pursuit of Growth in All Working People

The growth of the company comes with the growth of people. I think theability for all working people to use their strengths enthusiastically in each
workplace more quickly realizes the synergistic effect of our management
integration and helps to further the growth of society. Based on this philosophy, C.I. TAKIRON has established the Better Life Management Declaration
to build an enthusiastic working environment with enhanced programs for all
people. We have clarified the ideal form of human resources for the people
who work at our company. We will respect a spirit of perseverance and encourDirector Senior Managing Executive Officer
Chief Operating Officer of the Corporate Administration Div.

Tomomi Umeda

age even greater leaps forward in an extremely broad range of fields throughthe management integration.

We provide a quality workplace for a better life

Ideal Human Resources

C.I. TAKIRON aims to create this kind of company.

To Grow as a Leading Company

The ability for each and every employee to live a better life helps theWe have worked to give specific shape to ideal human resources assustainable growth of our company.

a compilation of the Letʼs Talk More! employee participation project

While faced with a decreasing working population due to an aging

launched in conjunction with the management integration. As a result

society with a declining birthrate, we must build an environment whereof in-depth discussions between teams divided into each generation

both the employees and company can grow through the acceptance offrom people in their 20s to people in their 50s, C.I. TAKIRON has estab-diverse human resources in order to heighten corporate competitiveness.

lished seven values as the desired skills and qualities shared throughout

As a means to this end, C.I. TAKIRON aims to provide a quality work-

the organization: a sense of ownership, a persevering spirit, ability toplace that leverages individuality rather than expecting employees toovercome through creativity, a high level of expertise, a sense of diversity

conform to a standard role model archetype. On April 1, 2019, we for-and international awareness, steadiness and sincerity, and communica-

mulated the Better Life Management Declaration in order to share ourtion skills.

thoughts with employees as an important medium- to long-term mea-

These seven values define our ideal human resources as a company.

sure of management. In this declaration, we advocate support for diverse
work styles, support for purposeful work, and support for better health[Ideal Human Resources]

as vital measures in building a quality workplace, and we are striving toCommunicate, Commit, Be Proactive

cultivate a new corporate climate.

Take Initiative and Drive Forward
Communicate: Engage in active communication.
Commit:Fulfill your responsibilities.

Be Proactive:

Take active action through shrewd insight.

This is the ideal human resource that the company expects and thefundamental philosophy behind human resource development.

34

C.I. TAKIRON Group Integrated Report 2019

Better Life Management Declaration

Important Measures
C.I. TAKIRON strives to encourage the formulation and use of programs with these important mea-

Voice of a Male Employee
Taking Childcare Leave
Research & Development Department:
Takashi Fujimotosures at the core to support a better life for our employees.

Support for
DiverseWork Styles

Support for
PurposefulWork

Support for
Better HealthRealization of a Workplace
Where People Can Work
According to the Stage of
Their Life

Realization of a Workplace
Where Everyone Can Work
Enthusiastically

Realization of a Workplace
Where People Can Work
Efficiently witha Healthy Body and Mind

The idea of childcare leave never occurred to me
when my daughter was first born. However, as I watched
my wife get more and more tired taking care of her eachday, I naturally began to feel the need to participate
more in raising her. At the time, there was no precedent for male employees to take childcare leave. There

1) Support for Diverse Work Styles
C.I. TAKIRON has adopted programs such as an hourly leave program and telework system with thegoal of realizing a workplace where each and every employee can select a working style according to

was not very much information and I also had financial
concerns. When I looked into the program, I discovered
there was paid leave* to raise a child.
I was in charge of operations to introduce new

their stage of life.
We set a fiscal 2019 target to reach a 50% acquisition rate of childcare leave by putting in place aequipment and repeatedly run tests and execute
improvements toward practical applications whenpolicy to encourage male employees to also take childcare leave. Our goal is to improve the acquisition

I decided to take childcare leave. I was worried therate and further support for both the professional and private lives of our employees.

people around me would be disappointed about myplan to take time off, but the executive in charge of the
program told me it was a great idea when I informed

2) Support for Purposeful Workhim of my desire to take leave. The general manager

C.I. TAKIRON implemented career consulting and job rotation programs as a framework to supportand my direct supervisor quickly found a replacement
to take over my tasks. This allowed me to take six

the purposeful work of its employees.
The career consulting program is a system to succeed in supporting career development throughconsultations. More specifically, employees create an action plan and confirm a growth process after
sharing their ideal future and their thoughts about their career with their supervisor and colleagues
based on a career vision sheet drafted by the employee themselves.

months off of work to help raise my daughter.
During this time off, my wife and I were able to split
up all the house work and child rearing except for cooking and breast-feeding. I often took her to parks andrecreational facilities for children where I was able to
make friends with other mothers and fathers.

The job rotation program is a policy in which employees move between different departments for

My daughter learned to crawl while I was taking

several years after joining the company with the hope of aiding in their development through a widechildcare leave. I was able to watch her practice andrange of experience.

see her grow. I know my leave caused some inconvenience in the workplace, but I am very grateful to have

These frameworks support the expectations from the company and the passion that employees
have about a career as a means to help facilitate a better professional life and purposeful work.

been able to take this time off to raise my daughter. I
experienced not only the joys and challenges of having
a child with my wife but also what it is like to take careof my little girl. I found confidence in my ability to raise3) Support for Better Healtha child and do housework. My work and my family have

C.I. TAKIRON has adopted a financial incentive program to encourage employees to take paid
leave as a framework that helps promote better health with the goal of realizing a sound and healthy
workplace. This system helps employees refresh their bodies as well as minds and supports a healthy
and energetic work style by ensuring every employee actively takes paid leave.
We have set a target for a 70% employee acquisition rate of paid leave for fiscal 2019 and arepromoting employees at each workplace to regularly take paid leave.

been doing great even after I returned to work.
I would really like to thank my boss as well as allof my colleagues. I will dive back into our research
to repay them with fruits of my labor. I will share andraise awareness about the childcare leave for men in
the future through the motivation I have in my work. I
hope an environment will be created where everyone
throughout C.I. TAKIRON can have a consultation about

Furthermore, in order to better the health of our employees, we are raising awareness about
employee health by expanding the items for medical check-ups, recommending follow-up examinations, and implementing stress checks.

35

taking this leave.
*Some requirements apply

Acquisition Ratio of Childcare Leave for Male Employees
FY2017FY2018FY2019 (Target)

0%

31%

At least 50%

C.I. TAKIRON Group Integrated Report 2019

Personnel and Human Resource Development

Status of Continued Employment for Retirees
FY2017FY2018Retirees17

17

Number of Re-employed Retirees

1015

Re-employment Ratio

59%

88%

Diversity
We accept diverse human resources regardless of age, gender or nationality. Understanding andrespecting a wide range of values and viewpoints vitalizes the organization and helps employees grow.
Therefore, we are advancing a system that accepts all people.

Second Life Seminar
1) Active Participation of Seniors (Continued Employment of Retirees)
We provide employees who would like to be re-employed at C.I. TAKIRON after they retire with aworkplace that considers their hopes as an employee, such as the business category and number ofwork days, to support their active participation. C.I. TAKIRON holds Second Life Seminars as a placefor employees in their 50s to learn how to plan and stay aware in their daily life after retirement. Thisenhances both their public and private life after retirement and builds a system able to facilitate evenmore active participation.

Employment Ratio of Disabled Persons

2) Employment of Disabled Persons
We support the employment of disabled people as part of our efforts to encourage the active participation

FY2017FY2018FY2019Forecastof diverse human resources, and we are furthering the employment of disabled persons at each of our corpo-

Employment Ratio of
Disabled Persons

2.11%

2.11%

2.30%

rate offices. In addition, C.I. TAKIRON has been supporting disabled people with a desire to work through the

Statutory
Employment Ratio

2.00%

2.20%

2.20%

New Female Graduate Employment Ratio
Joined2017

Joined2018

Joined2019

New Graduate
Employment Ratio

22

12

14

Female644Female Ratio

27%

33%

29%

Work Happiness Iwatsuki Saitama Farm since June 2019 by cultivating and harvesting vegetables.

3) Initiatives to Promote the Active Participation of Women
We have formulated an action plan and raise awareness both inside and outside of the company inaccordance with The Act on Promotion of Womenʼs Participation and Advancement in the Workplace
while building a workplace where everyone can work enthusiastically regardless of their gender.
Action Plan to Promote the Active Participation of Women from April 2018 to March 2021
(1) Increase the ratio of new female graduate employees to at least 30%.
(2) Cultivate an organizational climate where female employees can participate without worry.
● Introduce programs to support flexible work styles.

Work Happiness Iwatsuki Saitama Farm
Welcoming Ceremony● Build systems to support career development.

● Conduct training to change the attitude toward female employees.

System for Human Resource Development
C.I. TAKIRON set up achievement-based assessments and skill-based assessments as two systems tohelp the development of employees based on the belief that the growth of employees is the sourceof growth for the company.
The achievement-based assessment establishes goals for each individual to evaluate performancebased on the level of their final achievements. Supervisors will consult with employees regularly to
see if they are progressing according to plan while offering advice to support their success toward
these goals, which at the same time builds mutual relationships founded in trust. Through these
All of the Employees Working at Work Happiness Farm Six disabled
people joined the company and work on the farm each day.

achievement-based assessments, employees see their contributions to the company and their growth.
The skill-based assessment is a system to evaluate whether employees demonstrate the necessary
skills. This assessment helps employees to discover areas where they are strong and areas where they
can grow to help them grasp the necessary skills to further heighten their abilities.
We then consult with employees about their career based on the results of these two assessment
systems to facilitate close communication between each supervisor and employee. The career consulting
program flushes out the direction to proceed by having both the supervisor and employee think about
the career path. The supervisor also creates a development plan to support employee development.

36

C.I. TAKIRON Group Integrated Report 2019

New Employee Training

Education and Training
C.I. TAKIRON has established an education system and provides a broad range of opportunities
to foster the development of the employees who help enhance the value of the company while also
helping the employees themselves grow.
We have designed education programs according to the career paths of our employees 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 as well as
incentive programs to acquire qualifications.

Global Human Resource Development
Japan

Online English Courses

One-on-One English Lessons

Education System
Overseas(Global Human Resources)

Foreign Language
Study Abroad Program
Practical Overseas
Training Program

New Employee Mentor Training
Foreign Language Study Abroad Program (Training in England)

We offer a study abroad
program to learn a foreign
language as a way to
improve practical English
communication skills.
Employees attend a language
school for three or six months
in England to learn English
together with other students
from all over the world.

Main Internal Training
1) New Employee Training
We conduct training for new professionals who join the company in addition to practical trainingat plants to teach the knowledge necessary for employees of C.I. TAKIRON. New employees also join
follow-up training after working at the company for six months to consider their future career andverify their development as well as use of their skills after being assigned to a particular post.

2) New Employee Mentor Development Training
The new employee mentor development training for senior employees who have been with thecompany for several years aims to cultivate mentors (mentor employees) who support new employees
both from a mental standpoint as well as with operational concerns.
These mentors strengthen trusting relationships through discussions and consultations with new
employees while supporting the development of new employees.
This training shares concerns about mentor guidance and problem points to help the developmentof the mentors by finding solutions to those concerns and issues.

37

C.I. TAKIRON Group Integrated Report 2019

Health and Safety

Every Person Shall Always Think About Safety and Build a Robust Workplace

The title is the name of the fiscal 2019 C.I. TAKIRON Group health and safety
policies.
Employee safety and health is our top priority. There is no happiness without safety and health. However, safety and security are not given to us bysomeone else but something we must create for ourselves. The Production
Division improves awareness in an effort to create a better workplace around
5S (Sort, Set in Order, Shine, Standardize, and Sustain) activities with the fullparticipation of employees and to ingrain a sense of safety in every employee.
We strive every day with the goal of building a sound workplace with an

Director Managing Executive Officer
Chief Operating Officer of the Production Div.

atmosphere encouraging a free exchange of ideas.

Hikaru Sakamoto

Health and Safety Management System

Health and Safety Activities at Group Companies

The C.I. TAKIRON Group regularly holds various health and safety

Each C.I. TAKIRON company develops and promotes health and safety

meetings with the executives who are responsible for supervising healthactivities according to the integrated policies while working to preventand safety to determine policies on health and safety activities as wellaccidents and any recurrence under the slogan for every person to always

as important measures to prevent accidents, and to expand health andthink about safety and build a robust workplace. Each Group company

safety activities to C.I. TAKIRON and Group companies.

also mutually shares and uses information to build a system that promotes a higher level of health and safety as well as risk reduction.

(1) Group Health and Safety Council(2) TKCI Health and
Safety Manager Council

General Manager
Safety: Chief Operating Officerof the Production Division
Health: Chief Operating Officerof the Corporate Administration
Division

Framework of Health and Safety Activities Between Group Companies

Secretariat(3) Group Health and
Safety Manager Council(4) Health and Safety Committees
at Each Business Establishment
Employees

Safety: Plant Administration Department
Health: Human Resource Department

C.I. TAKIRON

Each Business
Establishment
Health and
Safety Committees

Group
Companies

Each Company
Healthand
Safety Committees

C.I. TAKIRONGroup Healthand Safety Council

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

Important Measures
Important Safety Measures

Important Health Measures(1) Eradicate accidents via safety
activities that all employees
participate in(5) Promote employees to takepaid leave(2) Provide education and practicebasic safety activities(3) Quickly identify accident factors and practice measure to
mitigate risks(4) Comply with relevant laws andregulations and fully respondto legal reforms
Mutual Safety Check Between Plants

38(6) Promote measures to improvehealth by actively using theresults of medical check-ups(7) Properly manage working
hours

C.I. TAKIRON Group Integrated Report 2019

Safety Simulation Training

FY 2018 Occupational Accidents(Including Injuries with No Leave of Absence for All Group Companies)

Sensory training to heighten the ability of

Other 3.8%
Collisions 1.9%
Contact with Hazardous Materials

employees to anticipate danger is vital to prevent
occupational accidents. C.I. TAKIRON introduced
safety simulation equipment at the Aboshi Plant

1.9%
Pinching/
Entanglement
23.1%

Contact with High/Low
Temperature Materials 1.9%
Crashes

3.8%

Trafﬁc Accidents (Road)

3.8%

Strain or Overexertion

7.7%

Falling Objects

7.7%

Falls

9.6%

in fiscal 2017 and conducted this sensory training
to heighten the ability of employees to anticipate
danger. We conducted this training primarily at
production sites around the Aboshi Plant in fiscal

Ratio by Type2017. In fiscal 2018, we brought in safety simulators

Falling
17.3%

to conduct on-site simulation training for production sites throughout Japan. As a result, 2,108
employees from all C.I. TAKIRON plants as well as
production sites of Group companies have taken

Cuts/Scratches
17.3%

simulation training as of June 30, 2019. Our goal
is to eliminate occupational accidents throughout

Unknown

2%

At Least 20 Years

13%

Between 15 to 20 Years10%

the entire C.I. TAKIRON Group by further expanding
educational simulators that conform to production
equipment, cultivating intuition of familiar dangers
in the workplace and thinking about how we shouldmake use of the awareness to improve a sense of

Accident Ratio
by Tenure
Between
10 to 15 Years
17%

Less than
5 Years
46%

danger as well as an awareness about safety.

Feedback from Trainees
Mita Plant of NIPPON POLYESTER CO., LTD.: I was

Between
5 to 10 Years
12%

able to see how the mechanical and pulling power
as well as the turning force was stronger than I had
ever imagined.
BONPACK CO., LTD.: I learned there was no abso-

Activities at Production Sites

lutes to safety. I felt how scary our preconceived

C.I. TAKIRON Group conducts various activities at each production site with the health and safetycommittees at the core. The accident ratio of employees with a short work history of less than five
years was high at 59% in fiscal 2017 and 46% in fiscal 2018. Therefore, we have drafted a Safety
Education Manual for New and Transfer Employees with information, procedures and follow-up support common to each production site. We are also working to vitalize and improve the level of thesenotions are.
Tokyo Plant: Actually simulating the experiencetaught me the importance of safety and changed
my perception of danger more than a lecture could.
Tochigi Plant: The simulation training helped me
reaffirm what I knew about a sudden movement

activities by dividing Group companies and production sites into five groups while conducting mutualof the hand or a moment of carelessness instantly

safety checks between plants (safety patrols between plants) to share information across sites, suchleading to an injury or accident.

as offering guidance and proposing improvements for inconsistencies as well as incorporating quality

Shiga Plant: The simulations imprinted new aware-

activities on oneʼs own site by looking at good points of other sites.

ness in me about how dangerous the machinery andoperations happening before my eyes are when various conditions align rather than being something

Points of the Safety Education Manual for
New And Transfer Employeesthat I forget after the training is done.

This manual defines the information, procedures, and follow-up common to each production site.

Three Points of the Safety Education Manual for New and Transfer Employees
Plan Education When
Assigning New Employees

Conduct Safety
Education

Conduct Follow-up
Education

Education plans fully
include Article 35 of theOrdinance on Industrial
Health and Safety

Each plant shares excellent education procedures
and ensures knowledge
and skills about safety

Follow-up training program is put inplace to ensure proficiency by defining a period of time from six months
to one, three, or within five years.
Safety Simulation Training

39

C.I. TAKIRON Group Integrated Report 2019

Environmental Report

In Harmony with the Global Environment
C.I. TAKIRON Group has formulated a new environmental policy for the purpose of conserving the global environment.
We strive to reduce the environmental impact across all of our business activities, such as improving production
processes, developing environmentally-friendly products and providing services, in line with this policy. The Group will
strengthen its environmental management system while advancing environmental conservation efforts throughout
the entire organization, such as measures to address the problem of marine plastic pollution and other social issues.

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

Basic Environmental Policy
1. We will fully comply with laws and regulations related to the environment andstrive to maintain harmony with society.
2. We will establish rules and systems for environmental conservation activities
and promote environmental conservation as a continuous cycle.
3. We will make efforts to reduce the environmental impact by reducing
emissions of harmful substances, reducing waste, and conserving energy andresources in all of our corporate activities.
4. We will always keep the environment and safety in mind when providing
products and services and developing technologies.
5. We will promote communication with society through active environmental
information disclosure, while making efforts to increase awareness ofenvironmental conservation among our employees.

40

C.I. TAKIRON Group Integrated Report 2019

Environmental Report

Environmental Conservation Activities
and Results

Environmental Management System
C.I. TAKIRON states that it will always try to protect the global environment and aim for permanent development and growth of the company

C.I. TAKIRON sets targets related to environmental issues throughout

in its management philosophy and engages in activities to comply withthe entire Group and endeavors in environmental protection activities.

environmental regulations, reduce the environmental impact, supply envi-

Our activities and the results of a self-assessment for fiscal 2018 are out-ronmentally- friendly products, save resources and energy, and reduce

lined below.

waste. Our environmental management system has been built to formu-

FY2018 Activities and Resultslate Group-wide policies and targets for these environmental activities
and manages the subsequent progress. We have established a committee

TargetProgress of
Activities

Item

led by the Chief Operating Officer of the Corporate Planning Division as● Improved manufactur-a system to periodically review the results and progress at management

Reduce waste

ing yield and sorted
waste(1) Promote activities
to reduce the environmental impact

conference.

● Implemented ener-

gy-saving equipment
and devices, etc.

Save energy

Environmental Management System▲ Environmental Diagnostic Rules

SelfAssessment○■● Complied with

Meeting on the Production Environment

laws and regulations, including the
Law Concerning
the Examination
and Regulation of
Manufacture, etc. of
Chemical Substances,the Law concerning
Pollutant Release andTransfer Register, andthe Industrial Safety
and Health Act.

Comply withlaws andregulations(2) Manage and reduce
chemical substances▲ Environmental Management Regulations
Reducedemissions andtransfer of PRTRlisted substances

Meeting to Promote Environmental
Conservation(3) Publicly releaseenvironmental
activities(4) Evaluate activities
through environmental accounting
Environmental
Accounting

Management Conference

reduce the use of listed
substances○● Published information

Environmental
Reportpublicly through ourIntegrated Report andon our homepage◎● Aggregated andEnvironmental
Accounting(Self-Assessment (Achievement Level)
More than 90%: ◎ 70% to 90%: ○41● Conducted activities to◎assessed environmental
accounting in accordance with Ministryof the Environment
Guidelines
Less than 70%: ■)○C.I. TAKIRON Group Integrated Report 2019

Environmental Report

Environmental Index
C.I. TAKIRON Group collects and analyzes yearly data for each environmental index at Group production sites as part ofits initiatives to reduce the environmental impact and conserve the environment.
We also further the reduction of our environmental impact and environmental protection activities by evaluating theefforts to reduce the environmental impact of the business activities of each Group site and the results of those efforts.

Energy and Resources Saving Initiatives

Initiatives to Reduce Emissions

The non-consolidated energy use of C.I. TAKIRON in fiscal 2018

C.I. TAKIRON defines the total weight of waste, waste valuables andincreased year-on-year due to higher production, but the energy con-exclusive waste recyclables as total waste emissions and sets targets for

sumption rate decreased due to the adoption of energy-saving equipment.

the reduction of the total waste emissions. In fiscal 2018, we reduced ourWe also reduced our CO2 emissions and unit CO2 emissions through mea-

total waste emissions as a result of distinguishing between necessary andsures that included the introduction of energy-saving equipment and theunnecessary waste. The recycling rate also decreased due to factors suchtransition to power companies with a low CO2 emissions factor. The con-as the waste import control regulations in each country.

solidated energy consumption and rate of energy consumption for the

Changes in Total Waste Emissions and Recycling Rateentire Group remained almost the same due to the influence of decreased(t)
16,000production at Group companies excluding non-consolidated Group com-

(%)

100

14,000

panies. As with non-consolidated Group companies, we also reduced our

12,000CO2 emissions and unit CO2 emissions through measures that included95

10,000

the introduction of energy-saving equipment and the transition to power

8,000

companies with a low CO2 emissions factor.

6,000

90

4,000

Changes in the Energy Use and Consumption Rate
（GJ）

85

2,000
0

(GJ/Manufacturing Ton)

2014

2015

2016

2017

2018

2,500,000

14.0

2,000,000

13.0*Data collection to understand the recycling rate began from fiscal 2017.
*Data includes former C.I. Kasei Group Companies from fiscal 2017.

1,500,000

12.0● Definitions

1,000,000

11.0

500,000

10.0

0

9.0

2014

2015

2016

Non-consolidated consumption
Non-consolidated unit consumption2017

Non-consolidated

Waste emissions:2018 (Fiscal Year)

Consolidated consumption
Consolidated unit consumption(t/Manufacturing Ton)

0.8

100,000
0.7
80,00060,0000.6

40,0000.5
20,000

0

2014

2015

2016

Non-consolidated emissions
Non-consolidated unit consumption

2017

2018

80

(Fiscal Year)

Waste, waste valuables and exclusive waste recyclables emitted from plants

Waste valuables:

Items collected from waste emissions which can be sold

Waste:

Anything other than exclusive waste recyclables andwaste valuables contained in waste emissions

Total waste emissions:

Weight of waste emissions (total weight of exclusive
waste recyclables, waste valuables and waste)

Recycling rate＝ (1−Changes in CO2 Emissions and Unit CO2 Emissions
120,000

Recycling Rate

Exclusive waste recyclables: Paper, paper fibers and scarp iron

*Data includes former C.I. Kasei overseas Group Companies from fiscal 2017.

(t)Group Companies

0.4(Fiscal Year)
Consolidated emissions
Consolidated unit consumption*Data includes former C.I. Kasei Group Companies from fiscal 2017.

42

Weight of waste without any recycling
total waste emissions) ×100C.I. TAKIRON Group Integrated Report 2019

Environmental Report

Chemical Substance Management andReduction Initiatives

Initiatives to Effectively Use
Water Resources

The C.I. TAKIRON Group strives to find alternates to PRTR-listed sub-C.I. TAKIRON Group accurately calculates the amount of its water

stances, which have a large environmental impact, throughout the entire

consumption and waste water for production sites throughout the entire

Group while working to reduce the use of listed substances.

Group to effectively use limited water resources.

The emissions of PRTR-listed substances in fiscal 2018 increased andOur water consumption remained almost the same in fiscal 2018.

the amount of transfer decreased. The emissions increased primarily due

However, even though we had furthered measures such as the recycling

to the impact of a rise in printed product production that uses tolueneof waste water as cooling water in production process and the adoption

as a solvent. The transfer decreased due to the reduction in the amountof water-saving equipment, the amount of waste water from our plantsof waste resulting from improved productivity of products that use bis

increased due to inconsistencies discovered in drainage equipment.
We will continue to employ efforts toward waste water reduction.

(2-ethylhexyl) phthalate.

Changes in PRTR-listed Chemical Substance Emissions

Changes in Water Consumption(kg)(Thousand m3)

60,000

1,400
1,200
1,000

40,000800
600
20,000

400
200

0

0
2014

2015

TolueneNormal hexane

2016

2017

Bis (2-ethylhexyl) phthalate
Dichloromethane2018 (Fiscal Year)

2014

Changes in PRTR-listed Chemical Substance Transfers(Thousand m3)

35,0001,400

30,0001,200

25,0001,000

20,000800

15,000600

10,000

400

5,000

200
2015

2016

Bis (2-ethylhexyl) phthalate
Manganese and manganese compounds

2017

2017

2018 (Fiscal Year)

Group Companies

Changes in Waste Water

(kg)

2014

2016

*Data includes former C.I. Kasei Group Companies from fiscal 2017.

*Data includes former C.I. Kasei Group Companies from fiscal 2015.

0

2015

Non-consolidated

Styrene02018 (Fiscal Year)

TolueneOrganotin compounds

2014

2015

2016

Non-consolidated

2017Group Companies*Data includes former C.I. Kasei Group Companies from fiscal 2017.

*Data includes former C.I. Kasei Group Companies from fiscal 2015.

43

2018

(Fiscal Year)

C.I. TAKIRON Group Integrated Report 2019

Environmental Report

Disclosure of Scope 3 Data

Distribution Initiatives

C.I. TAKIRON has begun calculating and publishing non-consolidated

C.I. TAKIRON is a specified shipper for more than 30 million ton kilome-

Scope 3 data for its supply chain as of fiscal 2018 in order grasp theters annually. We have been submitting rationalization plans and regularamount of CO2 emissions throughout the entire supply chain, which isreports to competent authorities while striving to review distribution sites

more important than ever before.

and improve load efficiency, including that at each Group company, toachieve those plans.

We are now publishing data about Category 1: Purchased Goods andIn fiscal 2018, C.I. TAKIRON introduced trailers for trucks on main

Services in addition to seven other categories for fiscal 2018.
As a result of verifying the state of our emissions, we discoveredroutes and measures to improve load efficiency, but unfavorable cir-Category 1: Purchased Goods and Services makes up a large portion of

cumstances such as rental vehicles with poor load efficiency along with

our emissions.

stronger distribution restrictions on transportation routes stagnatedWe will continue to further our efforts to reduce emissions throughout

reductions to unit consumption.

the entire supply chain by advancing considerations since FY2019, such as

In fiscal 2019, we will continue to transition to trailer trucks on our

the ongoing calculation and disclosure of Group business establishments

main routes. In addition, C.I. TAKIRON aims to improve load efficiency

in Japan and enhancements to the calculation accuracy about categories

further in rental vehicles by streamlining measures such as bundled orders

published in this report.

from customers.

Changes in Cargo Loads

CO2 Emissions by Each Scope 3 Category
Category

Emissions

1. Purchased Goods and Services

214

2. Capital Goods15

3. Energy-related Activities Excluded in Scope 1 and 2

7

4. Upstream Transportation and Distribution

22

80,0001.08

70,0001.06

60,0001.04

50,0001.02

40,0001.00

30,0000.98

20,0000.96

10,0000.94

05. Waste Generated in Operations

1

6. Business Travel2

7. Employee Commuting
8. Upstream Leased Assets(Year-on-year Unit Ratio)(Thousand ton kilometers)(Unit: Thousand Tons)

2014

2015

2016

Transportation quantity

0.3

2017

0.92
2018 (Fiscal Year)

Year-on-year Unit Ratio

Effectiveness of FY 2018 Ecoship and Modal Shifts
Results

Unit

Quantity of CO2 reductions

147

t-CO2 /year

Rate of CO2 reductions

46.4

Percentage (reductions)

Outside Scope

Calculation method: The calculation uses the emissions factor included in the emissions unit
value database to calculate greenhouse gas emission of an organization throughout the
supply chain according to the Basic Guidelines on Accounting for Greenhouse Gas Emissions
Throughout the Supply China Ver. 2.3 issued by the Ministry of the Environment and theMinistry of Economy, Trade and Industry.

Ecoship Logo

44

C.I. TAKIRON Group Integrated Report 2019

Environmental Report

Environmental Accounting
C.I. TAKIRON Group has implemented environmental accounting for the purpose of accurately understanding
and analyzing the costs and cost effectiveness of environmental protection activities to promote more efficientenvironmental conservation activities.
Therein, we are calculating the amount of investment and costs for environmental measures, energy and resource saving
measures in addition to resource saving through production improvement activities and cost reductions through recycling.

Environmental Conservation Effect(Effect in Business Areas)

Environmental Conservation Costs
The C.I. TAKIRON Group reduced total costs related to environmental
conservation by mitigating both downstream and upstream costs, such

In fiscal 2018, we reduced the amount of energy consumption throughas green procurement.

the promotion of energy-saving activities and other efforts in addition to

We also increased investments further for measures, such as the

reducing carbon dioxide emissions.

renewal of existing devices to energy-saving equipment.

However, even though we had furthered measures such as the recycling of waste water as cooling water in production process and theCategory

FY2017(Unit: Millions of Yen)

adoption of water-saving equipment, the amount of waste water from

FY2018our plants increased due to inconsistencies discovered in drainage equip-

Cost

Investment

Cost

Investment

307

148

315

486

(1)-1 Pollution control
costs

26

10

26

94

(1)-2 Global environmental
protection costs

89

134

137

344

(1)-3 Resource recycling
costs

192

4

152

48

ment. We will continue to employ efforts toward waste water reduction.
Furthermore, C.I. TAKIRON reduced the total waste emissions as a(1) Business area costs

result of distinguishing between necessary and unnecessary waste, but
the recycling rate also declined due to factors such as the waste import

Breakdown

regulations of each country.
Effective ItemFY 2017

FY 2018

1．Power consumption (thousand kWh)

213,893

208,812

2．Carbon dioxide emissions (t)115,310

109,077

3．Waste water from plants (thousand m )

897

1,004

13,93813,083

97.0

94.0

3

(2) Upstream/downstream costs

196

10

137

0

(3) Management activity costs

81

0

84

6

(4) Research and development
costs

0

4

1

4

(5) Outside activity costs

21

2

22

5

4．Total waste emissions (t)5．Recycling Rate (%)(6) Environmental
compensation costs

Economic Effect of Environmental Conservation
In fiscal 2018, production improvement activities were very effectivein improving yield, and resource savings and recycling increased the cost

0

1

0

0

605

164

560

501

reductions.
In the future, the C.I. TAKIRON Group will continue to promote efforts

Total

in productivity improvement activities to better yield.
(Unit: Millions of Yen)

Effective ItemFY 2017

FY 2018

Income from sale of valuables

120

117

Energy cost reductions from energy savings
Cost
reductions Cost reductions from resource savings and recycling

40

44

226

261

Income45

C.I. TAKIRON Group Integrated Report 2019Sociability Report

Together with Stakeholders
The C.I. TAKIRON Group aims to build trusting relationships and 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 thesustainable development of society through our business activities.

Together with Customers

Safety Initiatives

Quality Assurance Initiatives

Handling Chemical Substances Contained in Products

C.I. TAKIRON promotes quality assurance activities to fulfill the needs

We have not registered with the EU REACH Chemical Complianceof customers and ensure quality at every stage from the planning andServices because more than half of the products at C.I. TAKIRON aredevelopment of products to the production and after sales services tomolded products. However, C.I. TAKIRON will communicate information

provide a quality able to satisfy our customers under the motto to be theto customers and appropriately handle chemical substances based on thebest of the best.

201 chemical substances publicly announced by July 16, 2019 as well as

We have first facilitate contact points as a means of communication

substances of very high concern (SVHC) that will be added in the futurewith our customers such as a contact form on our homepage and a toll-from our position as an intermediate in the supply chain.

free telephone number to our customer service center in order to build

We also share the proper information with our customers based on

better frameworks for products and services by taking advantage of thethe flow for handling procedure even for chemical substances contained

feedback that we receive from customers.

in other products.

Each product site has acquired and operates the ISO 9001 as a basic

In the same way, C.I. TAKIRON will also properly handle various

system for our quality assurance activities, which functions as an import-

chemical substances in accordance with the amendments to the Foodant pillar of the Quality Management System (QMS) that we have built.

Sanitation Act enacted on June 13, 2018 in addition to the various otherlaws and regulations.

(See Framework of the Quality Assurance System)
We have prepared a framework to objectively verify the operational
progress of this quality management system through internal audits byeach production site and audits by the head office.

Framework of the Quality Assurance System
Plan

Do
Products
Planning

Customer
Needs
MarketTrends

Products
DesignCheck

Products
Preparation

Sales
Services

Act

Customers
Satisfaction
Complaints/Claims

Customers Feedback

Handling Framework for Substances Contained in Products
Customers
Applicable Information

Business Partner A
Business Partner B

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

SDS

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

Each Head Office Production Site
Information about
Legal Amendments

Various Amendments andOther Information (RoHS, REACH, etc.)

Various Databases

46

Browsing/Distribution of Information
Product Information

Administrations/
Industrial Associations
Business Divisions

C.I. TAKIRON Group Integrated Report 2019Sociability Report

Together with Business Partners

Fair and Impartial Dealings FAIR

Material Procurement Policy

as well as the conventional perspectives of quality, cost, and delivery to

C.I. TAKIRON focuses on evaluations from an environmental viewpoint

further green procurement.

Our mission is to find harmony with the environment and provide peo-

We will build fair and impartial business relationships founded on theple-friendly products to society in all of our activities founded in plastic

principle of competition open to all regardless of affiliation, the size of thematerials and material processing technologies.

company, business track record or other such factors without relying on

We pursue partners able to persevere in product development throughconventional business practices.

material procurement with us by exploring a broad range of materials

We also aim for mutual growth while always keeping in mind the needand technologies such as materials related to plastics, metal materials forto build trusting relationship of respect with business partners from theplastic composite materials as well as processed products.

stand point of both parties.

C.I. TAKIRON will engage in material procurement activities by gain-

Corporate Social Responsibilities CSR

ing the cooperation of its business partners to fulfill the corporate social
responsibility of the company with the aim of fostering the sustainable

C.I. TAKIRON will conduct material procurement in accordance with its

development of society.

corporate social responsibilities. We will fulfill these social responsibilities
to respect human rights, ensure occupational health and safety, comply

Environmentally-Friendly
Procurement
GREEN
PROCUREMENT

with laws and regulations, reduce the environmental impact and elimi-

Corporate Social
Responsibilities

nate any and all relations with anti-social forces through cooperation withour business partners.

CSR

Global Procurement GLOBAL
C.I. TAKIRON strives to explore materials and technologies that are

Material
Procurement
Policyable to quickly satisfy the needs of customers broadly pursued worldwide
without restricting material suppliers to Japan.
We always keep an eye on raw material market conditions in Japan andFair and Impartial
Dealings

Global Procurement

overseas to realize stable procurement and optimal costs.

GLOBAL

FAIR

Addressing the Issue of Conflict Minerals
Specified materials (tin, tantalum, tungsten,and four types of gold) from the Democratic
Republic of the Congo and surrounding
regions with ongoing conflicts are referred
to as “conflict minerals” seen as a problem
because these specified minerals are thefinancial sources of armed insurgents. The C.I.
TAKIRON Group recognizes conflict minerals asa priority CSR issue and will further inspectionsof the supply chain with the cooperation of its
business partners to foster its corporate presence in the international society.

Environmentally-Friendly Procurement Green Procurement
We aim to realize a sustainably, recycling-oriented society. As a means
to this end, we will prioritize the selection of companies with ambitious
environmental conservation activities, specifically business partners
emphasizing the development of plant-based and biodegradable resins
as well as technological development for recycling while promoting procurement of resources with a low environmental impact.

47

C.I. TAKIRON Group Integrated Report 2019Sociability Report

Together with Local Communities and Society
C.I. TAKIRON Group hopes to be a good neighbor to the local citizens of each community in regions 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 and the provision of support to afflicted areas.
In addition, as a member of the community entrusted with society, we actively work to support sports promotion as
well as research institutes, organizations of the United Nations, and other bodies.

Coexisting with Communities in Areas
Around Business and Production Sites

Main Activity Results (FY 2018)

C.I. TAKIRON Group has a proven track record of major activities infiscal 2018 that includes its active participation in environmental conservation and beautification activities in local communities as well as local
events, offering of plant tours and occupational trainings to students inneighboring schools, reception of internships as well as its engagementin donation activities such as contributions to disaster afflicted areas andlocal communities.
We will continue these efforts in support activities in the future to contribute to each region and assist afflicted areas.

Activity

No.

ActivityNo.

Local community beautification activity

15

Internship offerings

2

Donations to local
communities

10Fire-fighting/paramedic
activities

2

Participation in community
events and activities

7

Provision of resources to community events and activities

1

Plant tour offerings

3

Blood drive1

Resource collection

3

Briefings for local high school
students

1

Monetary donations toafflicted areas

3

Total

48

Progress of Activities

Cleaning Activities Around the Plant (Tochigi Plant)

Internship Offerings for Local High School Students (Okayama Plant)

Trial Week (Offerings for Local Junior High School Students) (Ibogawa Plant)

Participation in the Local Self-defense Fire Council

Resource Collection Activity (TAKIRON POLYMER CO., LTD.)

Participation in the Cosmos Festival (Ibogawa Plant)Child Refuge
Activities at Houses(BONPACK CO., LTD.)

Cleaning Activities
in the Ishikari Bay
New Port District(Hokkaido Sanplus
Co., Ltd.)

Kasumigaura City
Flower Road
Planting Activity(Tokyo Plant)48

C.I. TAKIRON Group Integrated Report 2019Sociability ReportSocial Contribution Activities at
Overseas Sites

Support of Research Institutes andOrganizations of the United Nations

Close to 90% of the roughly 260 million people in Indonesia are

C.I. TAKIRON has provided ongoing support to research into the mech-

Muslim. Many of the events are associated with the Islam religion.

anisms of climate change on a global scale, including global warming

PT TAKIRON INDONESIA has been engaged in philanthropic activities

research conducted by the Atmosphere and Ocean Research Institutefor these events since 2003 in addition to distributing daily goods to local(Division Climate System Research), The University of Tokyo.

households before the Eid al-Fitr festival.

We are also sponsoring the WFP Walk the World charity event held in

The more than 500 households in the local community are informed

Minatomirai, Yokohama by the United Nations WFP with the voluntary

about the distribution of these daily goods to help gain understanding

participation of employees and their families with the goal of ending theabout our day-to-day business activities and show our appreciation forhunger of children in emerging countries. As C.I. TAKIRON celebrated its

their cooperation. PT Takiron Indonesia also hand delivers these commod-

100th anniversary in fiscal 2019, we also sponsored the WFP Walk theities to every household.

World Osaka in addition to WFP Walk the World Yokohama. As a result

Local employees from SHANGHAI CIK ELECTRONICS CO., LTD. locatedof this sponsorship, the events saw ain Shanghai, China also participate in regular blood drives as part of thetotal of 90 employees and their fami-social contribution activities.

lies (approx. 50 in Yokohama and 40 in

In the future, we will work to build understanding with the people in

Osaka), which is the highest number ofthe local community while continuing to engage in social contribution

volunteers to ever participate from all ofactivities alongside our business activities.

C.I. TAKIRON, and brought both events
to a successful end.
Furthermore, a portion of the participation fees this year also played a role inhelping the United Nations WFP Feeding
Policy. We will raise awareness to culti-

Letter of Appreciationvate interest in the WFP activities throughout the Group in the future andpromote even greater participation by our employees and their families.

Daily Good Distribution
Before the Eid al-Fitr Festival

Blood Drive

Promotion and Development of Sports
C.I. TAKIRON concluded an
official Japan swimming teamsponsorshipagreement

with
WFP Walk the World 2019 in Yokohama

the Japan Swimming Federation(JASF) in fiscal 2015 as a way tocheer on the Japan swimming
team (TOBIUO Japan).
As a provider of non-slip
flooring for poolside safety andsecurity, TAKIRON MATEX CO.,LTD. also sponsors swimming
tournaments held by the Japan
Swimming Federation as well as provides broad support of activities topromote swimming as an official sponsor of the Japanese Para-Swimming

WFP Walk the World 2019 in Osaka

Federation.

49

C.I. TAKIRON Group Integrated Report 2019

GovernanceCorporate Governance
C.I. TAKIRON earns the trust of all of its shareholders and other stakeholders by improving the efficiency andtransparency of management. Our basic philosophy in corporate governance strives to foster sustainable growth andenhance medium- to long-term corporate value.
We have continued to promote initiatives to strengthen governance as the most important management challenge.
In fiscal 2018, C.I. TAKIRON introduced measures such as the establishment of the Nomination and Remuneration
Committee as well as the transition to management with multiple independent outside directors.

Basic Policy
1． We will strive to rapidly disseminate information to ensure the highest level of shareholder equality as well as build an environment to guarantee every shareholder has and can properly exercise their rights.
2． We will actively cooperate with all C.I. TAKIRON stakeholders in activities to achieve the targets laid out in the medium-term management planfrom the stance of connecting success to the profit of every stakeholder.
3． We will disclose the information in accordance with statutory compliance as well as other information deemed necessary for stakeholders in aproper and timely manner through mediums that include the corporate website in order to engage in fair and highly transparent management.
4． We will define the ideal direction for the C.I. TAKIRON Group internally and externally by setting the medium-term management plan as a coreof 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 in governance while the Board of Directors
conducts highly effective supervision 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 from shareholders and investors, such as establishing opportunities for a dialogue with shareholders and other investors,
to bring understanding about its corporate management strategy and management plan.

Board of Directors

Overview of the
Corporate Governance System
Organizational design typeCompany with Board of Directors
Company with Audit & Supervisory Board
Members (Audit & Supervisory Board)

Number of directors(of which number outside directors)

9 (2)The Board of Directors convenes once a month as a general rule inaccordance with the Articles of Incorporation and the regulations ofBoard of Directors to make vital management decisions and monitor the
performance of each director. The Board of Directors also assigns tasks to
the directors and executive officers. The managing directors and executive
officers report on performance and the progress of business execution at

Number of Audit & Supervisory Board
Members (of which number outside
3 (2)Audit & Supervisory Board Members)

least once every three months to the Board of Directors.

Term of director appointment

executive officers facilitates rapid decision making. The term of appoint-

In addition, streamlining of the Board of Directors and delegation to

1 year (same for outside directors)

Adoption of an executive officer system In place

ment has also been set to one year to fully clarify the management

Advisory body to the Board of Directors Nomination and Remuneration Committee

responsibilities of directors and executive officers. C.I. TAKIRON has also
appointed two outside directors with a high level of independence from a

Organizational design

stance of strengthening management supervision and auditing functions.

C.I. TAKIRON is a company with a Board of Directors and Audit &Supervisory Board Members (Audit & Supervisory Board).
We have adopted an executive officer system that aims to separatebusiness activities into auditing functions (Board of Directors) and business execution functions (executive officers).

50

C.I. TAKIRON Group Integrated Report 2019

GovernanceCorporate Governance Framework
General Shareholders’ Meeting
Elect, Dismiss

Make decisions
and Supervise

Elect, Dismiss

Consult

Proposal ofimportant matters
Reports on
business execution

Audit

Board of Directors
9 Directors (of which 2 outside Directors)

Supervise

Appoint,
Dismiss

ReportAudit & Supervisory Board
3 Audit & Supervisory
Board Members(of which 2 outside Audit &Supervisory Board Members)

Elect, Dismiss

Accounting Auditor

Audit

Accounting
AuditsNomination andRemuneration Committee

Business Execution
Chairman & CEO
President & COO
Internal
Audit OfficeCompliance Committee

Management
Committee

Audit

Corporate
Planning
Div.

Corporate
Administration
Div.

Proposal of important matters regarding business execution

Construction
Materials
Div.

Environmental
Materials
Div.

High Functional
Materials
Div.

Specialty Films
Div.

Production
Div.

4 Business Segments

Management Committee

R&D Dept.

Main Committee Agenda● Selection

criteria for director, Audit & Supervisory Board
Members, and executive officer candidates● Examination of independent election proposals for directors,
Audit & Supervisory Board Members, and executive officers

The Management Committee is convened once a month as a generalrule to deliberate and determine important matters related to business execution with the Chairman & CEO, President & COO, and Chief● Matters related to the appointment and dissmisal of represen-

Operating Officers as core members. Furthermore, the Management

tative and executive directors

Committee reviews matters requiring prior approval from among the● Remuneration policies for directors and executive officers

items that should be deliberated by the Board of Directors to assist in● Examination of processes to determine remuneration for direc-

functions of the Board of Directors and accelerate decision making.

tors and executive officers

Nomination and Remuneration Committee
Audit & Supervisory Board Members

C.I. TAKIRON set up the Nomination and Remuneration Committee
as an advisory body to the Board of Directors with more than half of theThree Audit & Supervisory Board Members (of which 2 outside Audit

members made up of independent outside directors in order to heighten& Supervisory Board Members) attend Board of Directors meetings, thethe independence, objectivity and transparency of the Board of Directors

Management Committee, and other important meetings according

in the nomination of directors, Audit & Supervisory Board Members andto the auditing criteria for auditors in an effort to understand the vital

executive officers as well as in the remuneration of directors and executive

decision-making process and progress of business execution by hearing

officers. Any important matters related to nomination or remuneration are

the progress of business execution from Directors and other officers andevaluated under this committee before approval by the Board of Directors.

browsing relevant materials.
Furthermore, the members regularly meet with the Representative

Composition of the Committee
Committee
Chairperson

Inside Director

1

Yosuke Minamitani(Chairman & CEO)

Members

Independent Outside Directors

2

Mune Iwamoto
Kenichi Hatano

Outside Audit & Supervisory Board Members 1

Yoshiyuki Fujioka

Director President & COO to brainstorm about the progress of businessexecution.

51

C.I. TAKIRON Group Integrated Report 2019

GovernanceInitiatives toStrengthen Corporate Governanceshares according to position.

Nomination and Remuneration Committee(fixed remuneration/stock remuneration) sets an objective ratio of 25% for

The policy for the payment ratio of performance-linked remuneration(bonuses) and remuneration other than performance-linked remuneration

C.I. TAKIRON approved the establishment of the Nomination andperformance linked remuneration and 75% for remuneration other thanRemuneration Committee, formulation of committee regulations, andperformance-linked remuneration. Furthermore, non-executive officers

the Appointment of committee members at the October 2018 meetingand Audit & Supervisory Board Members only receive fixed remuneration.

of the Board of Directors.(See P51)

Policy to Determine Each Type of Remuneration

The Committee convened three times during fiscal 2018 to deliberate

Fixed remuneration is remuneration that pays an amount according to fac-

the matters below and report the results of those deliberations to thetors such as position, which is calculated and paid as a monthly compensation.

Board of Directors.

Bonuses are remuneration that pays an amount calculated by reflecting● Matters related to the overall remuneration system for executive offi-

the consolidated return for the term as well as a qualitative and quantita-

cers such as the structure, evaluation criteria and industry standards oftive assessment of each executive officer once per year.

executive officer remuneration

Stock remuneration assigns points at the end of each business year

● Matters related to the nomination of executive officer candidates based

according to the amount of monthly remuneration of each executive offi-

on executive officer selection criteria

cer in accordance with regulations on issuing shares. C.I. TAKIRON assigns
one share of company stock for each point. These shares are issued upon

Independent Outside Directors

the retirement of executive officers as a general rule.

C.I. TAKIRON increased the number of independent outside directors

Effectiveness Evaluation of the Board of Directors

by one to put in place a two person structure at the 123rd Annual General
Shareholdersʼ Meeting held on June 27, 2018 in order to enhance the

C.I. TAKIRON analyzes and evaluates the effectiveness of the Board

effectiveness in supervising independent and objective managementof Directors every year and strives to address challenges discovered as

through the Board of Directors.

a result for the purpose of improving Board of Directors functions. The

The two independent outside directors provide insight into matterseffectiveness evaluation conducted in January 2019 is shown below.

such as the supervision of business execution by directors, management

Evaluation Method

policy and management plans based on their expert knowledge andwealth of experience, in addition to reporting to the Board of Directors
as core members of the Nomination and Remuneration Committee after

Surveyssufficient deliberation on vital decision making of the Board of Directors,
such as the appointment and dissmisal of core management as well as
decisions on executive officer remuneration. The outside directors also

Surveys through external bodies- Gather candid feedback by ensuring anonymity.
Self-assessment by directors and Audit & Supervisory Board Members(Main survey items)- Composition and operation of the Board of Directors- Support system and training for directors and Audit & Supervisory Board Members- Dialogue with shareholders (investors)- Nomination and Remuneration Committee

strive to monitor conflicts of interest between Directors and primaryCollection and analysis of survey results through an external bodyCollection
and Analysis- Objective analysis through the comparison of data from other companies

shareholders as well as other stakeholders and reflect the feedback from

Evaluation

all of the stakeholders at meetings of the Board of Directors.

Evaluation at the Board of Directors- Extraction of improvement points and challenges throughdiscussion of the analysis results

Evaluation Results
Executive Remuneration

The evaluation results showed the number of directors on the Board of

Introduction of a Stock Remuneration Plan

Directors, the ratio of inside to outside directors, the timing for debate at

A stock Remuneration plan was approved at the 123rd Annual General

the Board of Directors, and the number of times the Board of Directors

Shareholdersʼ Meeting held on June 27, 2018. This plan clarifies the relationshipconvene are appropriate. This once again provided a positive evaluation

between director remuneration and the stock price of C.I. TAKIRON to share theof C.I. TAKIRON, such as the ability to ensure sufficient time for deliber-

benefit and risk of fluctuations in the stock price with both directors and share-

ation, and verified the effectiveness of the Board of Directors. However,holders for the purpose of raising awareness that contributes to improvements

we also discovered the need for ongoing efforts to enhance the content

in medium- to long-term performance and greater corporate value.

of debate by the Board of Directors, such as the composition of the Board

Framework of Executive Remunerationof Directors and medium- to long-term policies. C.I. TAKIRON also estab-

Remuneration for directors (excluding non-executive directors) andlished a new department specializing in IR in April 2019 to reinforce its

executive officers is made up of fixed remuneration, bonuses as perfor-

corporate systems related to communication with shareholders (investors)

mance-linked remuneration, and a stock remuneration plan that assigns

and system enhancements necessary to these efforts.

52

C.I. TAKIRON Group Integrated Report 2019

GovernanceTraining for Directors and Corporate Auditors

In addition, we have put in place the policies below to establish sys-

C.I. TAKIRON operates under the basic policy to support the develop-

tems and initiatives to encourage constructive communication with every

ment of directors and Audit & Supervisory Board Members necessary toshareholder.

properly fulfill their roles and responsibilities. We conduct the training(1) The Chief Operating Officer of the Corporate Planning Division willoversee matters related to communication with all shareholders.

below for directors and Audit & Supervisory Board Members.
● Compliance and corporate governance training for newly elected direc-(2) Relevant internal departments will ensure active and close cooperation
to share information with other relevant departments in order to sup-tors and Audit & Supervisory Board Members● Briefings on the businesses of C.I. TAKIRON for newly elected outside

port communication with all shareholders.

directors and Audit & Supervisory Board Members(3) C.I. TAKIRON will properly conduct investor briefings as well as surveys● Setup of training to teach the knowledge and cultivate the develop-

and other dialogues with shareholders.

ment of directors and Audit & Supervisory Board Members necessary(4) C.I. TAKIRON will regularly report feedback from all the shareholders

to execute their duties

earned through the initiatives in (3) at the Board of Directors meet-

We are building an environment to nurture awareness and skill froming and the Management Committee. Furthermore, the Board ofan early stage even in executive officers and other management who are

Directors will review the voting results and reflect the feedback fromfuture director and Audit & Supervisory Board Members candidates, suchshareholders in management.

as mandatory participation in external training about matters necessary(5) C.I. TAKIRON must never disclose material facts not yet officiallyto corporate management.

disclosed in communications with shareholders and managers willthoroughly adhere to regulations on insider trading.

History of Enhancements to Corporate Governance
2000

Introduction of an executive officer system
Amendment to the number of directors in the Articles ofIncorporation (no more than 20 to no more than 12)
Changes to the number of directors (17 to 9)

2011

Appointment of an independent outside director (1)2017

Implementation of an effectiveness Evaluation for the Board of
Directors (conducted every year since implementation)

2018

Increase to the number of independent outside directors (1 to 2)
Establishment of the Nomination and Remuneration Committee
Introduction of a Stock Remuneration Plan

2019

Adoption of a Chairman & CEO/President & COO structure

Activity

Dialogue with Shareholders
and Other Investors
The C.I. TAKIRON Group focuses on building fair, good relationships
with all of its stakeholders. Proper evaluation through understanding
brought through a dialogue with all of the stakeholders helps to improve
medium- to long-term corporate value. IR activities at C.I. TAKIRON
comply with the Financial Instruments and Exchange Act, timely corporate disclosure regulations of the Tokyo Stock Exchange as well as otherlaws and regulations founded in the basic policy to properly and fairly
provide accurate corporate information as much as possible to shareholders and other investors. In regards to informational disclosure, C.I.
TAKIRON releases important information required for disclosure by relevant laws, such as the Financial Instruments and Exchange Act, as well as
regulations stipulated by the Tokyo Stock Exchange through the Company
Announcements Disclosure Service (TDnet) provided by the Tokyo Stock
Exchange in addition to public releases and information published on thecorporate website.

53

Supplementary Information

Regular briefings
for analysts andinstitutional investors

Twice per year
Briefing provided by the President andRepresentative Director

Distribution of
the Notice to Our
Shareholders reportfor shareholders

Twice per year
Publication with a financial summary andtopicsCorporate website
with IR materials

Articles of Incorporation, share handlingregulations, statement of accounts,
timely disclosure materials, medium-term
management plan, Notice of General
Shareholdersʼ Meeting, To Our Shareholders(report), Notice of Resolutions, financial
statements, quarterly reports, extraordinary
reports (results of vote execution), corporate
governance reports, and English annual
reports

Setup of IR-related
departments

Corporate Planning Dept./IR & PR GroupC.I. TAKIRON Group Integrated Report 2019

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

C.I. TAKIRON Audit &Supervisory Board

complies thoroughly with the relevant laws and regulations as well as

C.I. TAKIRON Boardof Directors

with the articles of incorporation for each company in addition to defin-

Chief Compliance Officer
President of C.I. Takiron

ing the C.I. TAKIRON Group Corporate Code of Conduct for the purposeof taking action deemed suitable by social ethics.
The C.I. TAKIRON Group Compliance Program follows the C.I. TAKIRON

Compliance Committee

Group Corporate Code of Conduct and defines the following three points
as a basic policy.
Compliance Subcommittees
1. Create a sound organizational culture and climate
2. Create systems and operational processes to prevent scandals
3．Penetrate an awareness about compliance in all executives andemployees and encourage the practice of compliance

Person in Charge of
C.I. TAKIRON Compliance

Person in Charge of Complianceat Companies Besides C.I. TAKIRONInternal Reporting System (Hotline)
Japan (C.I. TAKIRON and Domestic Affiliate Companies)

Audit & Supervisory
Board Members

Attorneys at
Law (External)

Overseas Affiliate Companies

Chief Operating
Officer of the
CSR & ComplianceDepartment

Business Operating
the Hotline Service(External)

Chief Operating
Officer of the
CSR & ComplianceDepartment

Business Operating
the Hotline Service(External)

FY2018 Activities and Results
Results

Preparation of systems and frameworks(1) Preparation of an action manual for the person in charge of compliance(2) Establishment of a Group harassment consultation service(3) Setup of a hotline dedicated to overseas affiliate companies

Initiatives and enlightenment to improve awareness(1) On-site compliance seminars held throughout Japan(2) Stratified compliance seminars(3) Individual compliance seminars for affiliate companies(4) Compliance enhancement month <November 2018>(5) Harassment seminars

54

C.I. TAKIRON Group Integrated Report 2019

GovernanceRisk Management

C.I. TAKIRON Group. The risk management secretariat operates risk man-

Risk Management Systemfor critical risks defined below.

agement each fiscal year based on the selection and handling processes

We have put in place a risk management system and formulated Risk
Management Regulations for the purpose of reducing and preventing

Selection and Handling Process of Critical Risks

losses as well as enhancing corporate value through the organizational

1. Surveys for risk managers (generally once every three years)

management of risk throughout the C.I. TAKIRON Group.

Assess the level of impact and likelihood based on a common list of

The CSR & Compliance Department acts as the risk management sec-risks created by the risk management secretariat according to the social

retariat and operates the risk management process each fiscal year bylandscape and risk examples.

placing a risk manager at C.I. TAKIRON as well as each affiliate company.

2. Analysis/evaluation

Occupation

Collect and analyze survey results and other information about risk via

Person in charge

Person responsible
for riskmanagement

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

Departments
supervising risk
assessment

Divisions designated by the risk management
secretariat, such as each C.I. TAKIRON businessplanning department, plant management departments,
purchasing departments, finance and accounting
departments, quality assurance departments,
management planning departments, legal affairs
departments, intellectual property departments,
information systems departments, human resource
departments, general affairs departments, and sales
management departments.

Risk management
secretariat

C.I. TAKIRON CSR & Compliance Department

Departments
supervising thehandling of risk

Each division of C.I TAKIRON designated by the risk
management secretariat and affiliate companies

the risk management secretariat and select critical risk candidates.

3. Identification of critical risks
Identify critical risks (corporate risks/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 through discussions with the risk
management secretariat, and then the risk management secretariat seeks
approval from the C.I. TAKIRON Management Conference.

5. Execution of measures against risks
Departments supervising the handling of risk handle risks based on themeasures against risks, and the departments supervising risk assessment

Risk Management Operations

monitor the progress of those measures against risks.

6. Review of the results from measures against risks

C.I. TAKIRON has a system to address the intrinsic risks of the Groupthrough ongoing reduction efforts in accordance with the risk manage-

The risk management secretariat reports to the C.I. TAKIRON

ment regulations. The Management Conference determines measures

Management Conference based on the results of the measures against

against risk through risk identification and evaluation results for the entire

risks for the current fiscal year.

Risk Management Process (Target: C.I. TAKIRON Group)
Identification and Evaluation of Risk
Conduct Risk
SurveysAnalyze/
Evaluate Risk

Identify
Critical Risks

Review

Determine
Measures Against Risks

Gain Management
Approval

Execute Measures
Against Risks

Report toManagement

FY2018 Selection of Critical Risk Management Items (Risks for Monitoring in FY2019)
Risk Management Items

Risk Category

Supervising
Department

Frequent natural disasters(typhoons, severe rain storms,
tidal wave, landslide disasters, etc.)

Corporate

CSR & ComplianceDepartment(1) Inconsistencies in disaster response manuals and insufficientawareness(2) Measures against disasters at overseas Group companies

Corporate Planning
Department

Labor shortages/recruiting
difficulties

Operational

Human Resource
Department(1) Labor shortages(2) Recruiting difficulties

CSR & ComplianceDepartment

Violations to product-related laws
and regulations worldwide

Corporate

Quality Assurance
Department(1) Violations to governmental authorizations(2) Violations to authorizations, such as self-imposed restrictions by
the industry(3) Lack of response to overseas laws and regulations

CSR & ComplianceDepartment

IT Security

Corporate

Information Systems
Department(1) Risks of informational leaks(2) Risks of suspended operations due to system stoppages(3) Risks of a decrease in credit

CSR & ComplianceDepartment

Occupational hazards

Corporate

Plant Administration
Department(1) Risks of injury due to a lack of understanding or imperfections inbasic operations(2) Risks of injury due to insufficient experience(2) Risks of injury due to underestimation of dangers

CSR & ComplianceDepartment

Risk Items

55

Assessment
Department

C.I. TAKIRON Group Integrated Report 2019

GovernanceDirectors, Audit & Supervisory Board Members,
and Executive Officers (As of June 26, 2019)
Representative Director Chairman & CEO

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

Yosuke Minamitani

1974 Joined ITOCHU Corporation
2008 Representative Director and Vice President of TAKIRON
2017 Representative Director and President of C.I. TAKIRON
2019 Representative Director Chairman & CEO of C.I. TAKIRON (current position)

1982 Joined ITOCHU Corporation
2019 Director Senior Managing Executive Officer of C.I. TAKIRON (current position)
Reasons for nomination Akihiro Ueda was appointed Executive Officer
of C.I. TAKIRON in 2013, Managing Executive Officer in 2015, and Senior
Managing Executive Officer in April 2019 after his many years of service at
the ITOCHU Corporation in the chemicals department. C.I. TAKIRON nominated Akihiro Ueda because it can expect him to continue to execute thedecision making and supervision of management based on his wealth ofexperience and expertise in the chemical products field, including management experience at multiple overseas companies.

Reasons for nomination C.I. TAKIRON appointed Yosuke Minamitani as theRepresentative Director and Vice President in 2008, Representative Director
and President in 2017, and Representative Director Chairman & CEO in April
2019 based on his many years of service to the ITOCHU Corporation in thechemicals department as well as in managements. Yosuke Minamitani currently acts as the highest authority in management to expand business andpromote greater profitability while driving the realization of sustained andenhanced corporate value throughout the entire Group. C.I. TAKIRON nominated Yosuke Minamitani because it can expect him to continue to executethe decision making and supervision of management based on his wealth ofexperience and high-level of expertise.

Representative Director President & COO

Director Managing Executive Officer Hideharu Iwasaki
Chief Operating Officer of the Corporate Planning Div. & in Charge of the R&D Dept.

Kazuya Saito

1981 Joined ITOCHU Corporation2014 Executive Officer of TAKIRON
2019 Representative Director President & COO of C.I. TAKIRON (current position)

1983 Joined TAKIRON
2019 Director Managing Executive Officer of C.I. TAKIRON (current position)
Reasons for nomination Hideharu Iwasaki was appointed Director in2013 and Chief Operating Officer of the Construction Materials Division in2017 after working as the General Manager of the Product Development
Department and Development Department. He is currently the Chief
Operating Officer of the Corporate Planning Division in charge of the R&D
Department. C.I. TAKIRON nominated Hideharu Iwasaki because it can expect
him to drive the management strategies of the company as well as executethe decision making and supervision of management based on his wealth ofexperience and expertise.

Reasons for nomination C.I. TAKIRON appointed Kazuya Saito as theRepresentative Director President & COO in April 2019 based on his many
years of service to the ITOCHU Corporation in the chemicals department
and after his appointment as Director, Chief Operating Officer of theHigh Functional Materials Business, and Chief Operating Officer of theEnvironmental Materials Business in 2015. C.I. TAKIRON nominated Kazuya
Saito because it can expect him to further the expansion of business andgreater profitability as the highest authority in business execution currently
and for his continued execution of decision making and supervision of management based on his wealth of experience and expertise in overall business,
including the overseas fields of the company.

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

Director Managing Executive Officer Hikaru Sakamoto
Chief Operating Officer of the Production Div.

1984 Joined TAKIRON
2017 Director Senior Managing Executive Officer of C.I. TAKIRON (current position)

1990 Joined C.I. Kasei
2019 Director Managing Executive Officer of C.I. TAKIRON (current position)

Reasons for nomination Takahisa Miyake was appointed Director in 2016
and Chief Operating Officer of the Corporate Planning Division in 2017 afterworking as the General Manager of the purchasing, flooring and corporate
planning departments. He is currently the Chief Operating Officer of theEnvironmental Materials Division. C.I. TAKIRON nominated Takahisa Miyake
because it can expect him to continue to execute the decision making andsupervision of management based on his wealth of experience and expertisein management and the overall business operations of the company.

Reasons for nomination Hikaru Sakamoto worked as the General Managerof the Production Planning Division and Production Technology Division at C.I.
Kasei before his appointment as Director in 2016. He was appointed Directorof C.I. TAKIRON in 2017 and currently works as the Chief Operating Officer of
the Production Division. C.I. TAKIRON nominated Hikaru Sakamoto because it
can expect him to continue to execute the decision making and supervision ofmanagement based on his wealth of experience and expertise in the overall
operations of the Production Division.

Director Senior Managing Executive Officer Tomomi Umeda
Chief Operating Officer of the Corporate Administration Div.

Director*1

1983 Joined TAKIRON
2019 Director Senior Managing Executive Officer of C.I. TAKIRON (current position)

Mune Iwamoto

1976 Joined Mitsui Toatsu Chemicals (current Mitsui Chemicals)2014 Director of TAKIRON (current position)2016 Outside Director of Toyo Tanso (current position)

Reasons for nomination Tomomi Umeda was appointed Director in 2012
after working as the General Manager of the purchasing, flooring and corporate planning departments. He is currently the Chief Operating Officer of the
Corporate Administration Division. C.I. TAKIRON nominated Tomomi Umeda
because it can expect him to continue to execute the decision making andsupervision of management based on his wealth of experience and expertisein the overall operations of the Administration Division of the company.

Reasons for nomination C.I. TAKIRON appointed Mune Iwamoto as Director
because it expects him to utilize his wealth of experience and expertise cultivated in research and development, such as the functional resin field during
his long tenure at a comprehensive chemical manufacturer, and multiple
posts in management at companies. In addition, Mune Iwamoto has actively
provided guidance from an independent standpoint since his appointment as
outside Director of the company in 2014, and it expects him to continue to
execute the proper decision making and supervision of management.

56

C.I. TAKIRON Group Integrated Report 2019

GovernanceDirector*1

Kenichi Hatano

1966 Joined Sumitomo Chemical Industry Company Limited (current Sumitomo Chemical)
2018 Director of C.I. TAKIRON (current position)
Reasons for nomination C.I. TAKIRON appointed Kenichi Hatano as
Director because it expects him to utilize his wealth of experience and expertise cultivated through his involvement in management of a comprehensive
chemicals manufacturer in the management of the company. In addition,
Kenichi Hatano has actively provided advice from an independent standpoint
since his appointment as outside Director of the company in 2018, and thecompany expects him to continue to execute the proper decision making andsupervision of management as an outside Director of the company.

Audit & Supervisory Board Member*2

Yoshiyuki Fujioka

1979 Joined ITOCHU Corporation
2015 Audit & Supervisory Board Member of C.I. Kasei
2017 Audit & Supervisory Board Member of C.I. TAKIRON (current position)
Reasons for nomination Yoshiyuki Fujioka was involved with corporate
planning, development and investigation, and compliance departments
at the ITOCHU Corporation and worked as the Audit & Supervisory Board
Member of C.I. Kasei. C.I. TAKIRON appointed him because it expects him toprovide suitable advice and checks to ensure the appropriateness of decisions
made by the Board of Directors through his management and administration
experience as well as discretion based on his wealth of experience and highlevel of expertise.

Audit & Supervisory Board Member*2

Kazuhiro Takasaki

1976 Joined C.I. Kasei
2017 Audit & Supervisory Board Member of C.I. TAKIRON (current position)
Reasons for nomination Kazuhiro Takasaki was involved with the production technology department and worked as the Audit & Supervisory Board
Member during his many years at C.I. Kasei. C.I. TAKIRON appointed him
because it expects him to provide the suitable advice and checks to ensure
the appropriateness of decisions made by the Board of Directors through hispractical experience and knowledge in business and the overall operations of
production based on his wealth of experience and expertise.

Audit & Supervisory Board Member

Kenji Takai

1990 Joined ITOCHU Corporation
2019 CFO of the ITOCHU Energy & Chemicals Company (current position)
2019 Audit & Supervisory Board Member of ITOCHU ENEX (current position)
2019 Audit & Supervisory Board Member of C.I. TAKIRON (current position)
Reasons for nomination Kenji Takai is the CFO of the ITOCHU Energy &Chemicals Company and has been involved with accounting and financedepartments over his many years at the company. C.I. TAKIRON appointed
him because it expects him to provide the suitable advice and checks toensure the appropriateness of decisions made by the Board of Directors
through his practical experience and knowledge in corporate management at
ITOCHU Energy & Chemicals Company based on his expert knowledge in theaccounting and finance fields.

Managing Executive Officer
Chief Operating Officer of theSpecialty Films Div.

Hiroyasu Kawakami

Managing Executive Officer
Chief Operating Officer of the High
Functional Materials Div.

Toshio Tamaki

Executive Officer
Deputy Chief Operating Officerof the Production Div.

Toshiro Okajima

Executive Officer
General Manager of the
Corporate Planning Dept.

Hironori Kikuchi

Executive Officer
General Manger of the Housing
Materials Department

Hiroji Kimura

Executive Officer
Deputy Chief Operating Officer of the
Corporate Administration Div.

Yukihiro Iwata

Executive Officer
General Manager of the Ibogawa
Plant and Aboshi Plant

Satoshi Igarashi

Executive Officer
General Manger of the Finance &Accounting Dept.

Toshiya Okubo

Executive Officer
General Manger of the Information
Systems Dept.

Tsutoshi Miki

Executive Officer
General Manager of theInfrastructure Material Dept.

Takashi Harada

Executive Officer
General Manger of the Flooring &Decorative Materials Dept.

Kenji Matsui

Executive Officer
General Manager of the
Shiga Plant

Kenji Watanabe

Executive Officer
General Manager of the
Yasutomi Plant

Yukio Hiraiwa

Executive Officer
General Manager of theAgricultural Materials Dept.

Tetsuo Kaneko*1 Outside Director*2 Outside Audit & Supervisory Board Member

57

C.I. TAKIRON Group Integrated Report 2019

Quinquennial Data

Unit: Millions of Yen

FY2014FY2015FY2016FY2017FY2018Net Sales

70,352

72,95875,118147,805

150,650

Operating Profit

3,638

3,793

4,339

8,363

9,080

Ordinary Profit

3,804

3,946

4,519

8,204

9,200

Current Net Income Attributable to the Owners of Parent

2,168

2,746

2,695

6,579

6,391

Depreciation

3,111

3,090

3,201

4,896

4,533

Capital Investment

4,180

3,486

2,609

3,969

7,430

766

841

686

1,288

1,109

Total Assets

84,01888,08788,997141,116

138,251

Net Assets

47,501

46,46149,43569,90974,310Equity Capital

46,84145,75548,67868,332

72,680Interest-bearing Liabilities

2,623

2,696

2,031

11,7294,911

Accumulated Surplus

19,73721,48923,19022,031

26,571

Cash Flow from Business Activities

5,700

5,773

6,579

9,328

9,805

Cash Flow from Investment Activities△ 4,377△ 2,860△ 2,537△ 1,575△ 9,620

Cash Flow from Financial Activities△ 1,805△ 2,828△ 1,749△ 9,160△ 9,160

Free Cash Flow

1,322

2,912

4,042

7,752

184

Balance of Cash and Cash Equivalents (End of Term)

13,571

13,76016,04615,8006,835

78,69878,69878,69897,50097,500

Dividends (Yen)

14

14

14

18

26

Payout Ratio (%)

45.9

36.2

36.9

26.7

39.6

Management Performance

Research & Development Expenses
Financial Status

Cash Flow

Stock Information
Total Number of Issued Shares (Thousand Shares)*Former TAKIRON Group data from FY2015 to FY2017

58

C.I. TAKIRON Group Integrated Report 2019

FY2014FY2015FY2016FY2017FY2018Current Net Income Attributable to the Owners of Parent (Yen)

30.50

38.66

37.95

67.49

65.62

Net Assets (Yen)

659.46644.22685.44700.99746.42

ROA (%)

2.6

3.2

3.0

4.7

4.6

ROIC (%)

5.1

5.1

5.7

7.3

8.1

ROE (%)

4.7

5.9

5.7

9.6

8.8

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

0.06

0.05

0.04

0.17

0.07

Operating Profit on Sales (%)

5.2

5.2

5.8

5.7

6.0

Capital-to-Asset Ratio (%)

55.8

51.9

54.7

48.4

52.6

Overseas Net Sales Ratio (%)

3.4

4.4

4.5

15.9

15.5

Number of Employees (Persons)

1,732

1,871

1,889

3,369

3,412

Female Employment Ratio (%)

11

25

27

33

29

Acquisition Rate of Childcare Leave for Male Employees (%)

0.0

0.0

5.0

0.0

31.0

Rate of Paid Leave Taken by Employees (%)

56.2

57.7

61.3

55.4

62.4

Energy Consumption Rate (GJ/Manufacturing Ton)

12.4

12.5

12.8

13.1

13.0

Unit CO2 Emissions (t/Manufacturing Ton)

0.69

0.69

0.71

0.67

0.63

Total Waste Emissions (Thousand Tons)

9,562

10,693

12,034

13,42813,083

Water Consumption (Thousand m3)

1,058

1,091

1,114

1,174

1,176

Information about One Share of Company StockManagement Index

Main Non-Financial Index

59

C.I. TAKIRON Group Integrated Report 2019

Corporate Profile and Stock Information (As of March 31, 2019)

Corporate Profile

Major Shareholders (Top 10)

Trade Name

C.I. TAKIRON Corporation

Established

October 10, 1919

Incorporated

December 20, 1935

ITOCHU Corporation

51.01

Head Office
Address

3-1-3 Umeda, Kita-ku,
Osaka 530-0001, Japan(North Gate Building)

C.I. Takiron Kyowa-Kai

5.03

Japan Trustee Services Bank, Ltd. (trust fund)3.70

Telephone+81-6-6453-3700

The Master Trust Bank of Japan, Ltd. (trust fund)2.43

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

Sekisui Jushi Corporation

1.48

Capital¥15,189 million

Nippon Life Insurance Company

1.42

Kaneka Corporation

1.35

DFA INTL SMALL CAP VALUE PORTFOLIO

1.15

GOVERNMENT OF NORWAY

1.15

Tosoh Corporation

1.10

Number of
Employees(Consolidated)

3,412

Ratio of
Share
Holding (%)

Name of Shareholder

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

Stock Information
Securities Code4215

Total Number ofIssued Shares

97,500,000

Number of
Shareholders
Stock listing
Share Unit
Administratorof Shareholder
Registry
Accounting
Auditor

6,279

Treasury Stock

0.02%

Securities Firms
First Section ofTokyo Stock Exchange
100
Sumitomo Mitsui Trust Bank,
Limited
Deloitte Touche Tohmatsu LLC

Other JapaneseCorporations

58.99%

0.50%

Foreign Persons

8.61%

Individuals andOther
Shareholders

15.91%

Financial
Institutions

15.97%

60

Distribution of Sharesby Shareholder

C.I. TAKIRON Group Integrated Report 2019

Business Sites (As of June 30, 2019)

List of C.I. TAKIRON Business Establishments

Affiliate Companies

Head OfficeConstruction Materials Business■ Head Office3-1-3 Umeda, Kita-ku, Osaka■ SANWA SIGNWORKS CO., LTD.

■ Tokyo Head Office

2-15-1 Konan Minato-ku, Tokyo■ TAKIRON KC HOME IMPROVEMENT CO., LTD.
■ NIPPON POLYESTER CO., LTD.
■ BONLEX EUROPE S.R.L [Italy]

Branches/Sales Offices■ Sapporo Sales OfficeChuo-ku, Sapporo City

■ TAKIRON MATEX CO., LTD.

■ Tohoku Branch

Aoba-ku, Sendai City

■ Tokyo Branch

Minato-ku, Tokyo

Environmental Materials Business■ Chubu Branch

Higashi-ku, Nagoya City■ HOKKAIDO SANPLUS CO., LTD.

■ Osaka Branch

Kita-ku, Osaka City■ YOKOBI CO., LTD.

■ Chugoku/Shikoku BranchNaka-ku, Hiroshima City

■ C.I. AGRO CO., LTD.

■ Kyushu Branch

Hakata-ku, Fukuoka City

■ C.I. MATEX CORPORATION■ Kagoshima Sales Office

Kagoshima City, Kagoshima■ SHANGHAI C.I. KASEI TRADING COMPANY LTD. [China]■ PT. TAKIRON INDONESIA [Indonesia]■ DAILITE CO., LTD.

Manufacturing Bases■ Aboshi Plant

Tatsuno City, Hyogo■ DAIPLA CORPORATION■ Ibogawa Plant

Tatsuno City, Hyogo■ HOKKAI DAIPLA CO., LTD.

■ Yasutomi Plant

Himeji City, Hyogo■ DAIPLA TEC. CO., LTD.

■ Tokyo Plant

Kasumigaura City, Ibaraki■ TAKIRON ENGINEERING CO., LTD.

■ Shiga Plant

Konan City, Shiga■ Tochigi Plant

Haga District, TochigiHigh Functional Materials Business■ Okayama Plant

Niimi City, Okayama■ TAKIRON-ROWLAND LIMITED■ Hiratsuka Plant

Hiratsuka City, Kanagawa■ TAKIRON POLYMER CO., LTD.

■ Sano Plant

Sano City, Tochigi■ CIK NANOTEK CORPORATION■ TAKIRON PLASTICS (CHANGZHOU) CO., LTD. [China]■ TAKIRON TECH CO., LTD.

R&D Centers■ R&D Center■ SHANGHAI CIK ELECTRONICS CO., LTD. [China]

Konan City, Shiga

Specialty Films Business■ BONPACK CO., LTD.
■ BONSET AMERICA CORPORATION [United States]■ BONSET LATIN AMERICA S.A. [Uruguay]■ SHANGHAI SANPLUS PLASTIC CO., LTD. [China]

Other Affiliate Companies■ C.I. TAKIRON LOGISTICS CO., LTD.
■ DAIPLA WINTES CO., LTD.

61

Head Office
North Gate Building, 3-1-3
Umeda, Kita-ku, Osaka 530-0001, Japan
Tel: +81-6-6453-3700 FAX: +81-6-6453-3884