C.I. TAKIRON Group

Integrated Report 2 0 2 0

C.I. TAKIRON Group Integrated Report 2020

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 andgrowth 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 tomorrow - In order to make our lives more comfortable create productsthat meet contemporary 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 2020

CONTENTS

Editorial Policy

Mission/Management Philosophy/
Corporate Message
Contents/Editorial Policy
Message from Top Management on Integrated
ReportOne Century of History at C.I. TAKIRON
Business Overview
Financial/Non-financial Highlights
Top Message
Medium-term Management Plan
Value Creation Process Chart
Materiality (Priority Issues)
Medium-term Plan for Materiality

2
3
4
6
8
10
12
18
20
22
24

Business Strategy
Construction Materials Division
Environmental Materials DivisionHigh Functional Materials Division
Specialty Films Division

28
32
36
40

Foundation of Value Creation
Technology, Research & Development
44
Personnel and Human Resource Development 46
Health and Safety
50

Environmental Report
In Harmony with the Global Environment
Environmental Index
Environmental Accounting

52
54
57

We publish this report for the purpose of deepening
communication with all of our stakeholders by providing information about ESG management as wellas the basic ESG/CSR concepts and specific initiatives of C.I. TAKIRON Group.
Reporting Period
FY2019 (April 1, 2019 to March 31, 2020)* This report includes some information outside of thisreporting period.

Reporting Organizations
C.I. TAKIRON Corporation and its Group Companies
Publication Date
September 30, 2020

Main Reference Guidelines
Ministry of Economy, Trade andIndustry
Guidance for Collaborative Value
Creation
Ministry of the Environment
Environmental Reporting Guidelines
International Integrated Reporting Council (IIRC)
International Integrated Reporting Framework
GRI (Global Reporting Initiative)
Sustainability Reporting Standards

Sociability Report
Together with Stakeholders
58
Together with Local Communities and Society 62

GovernanceFeatured Section: Panel Discussion with
Outside Directors
64
Corporate Governance
70
Compliance Risk Management74
Directors, Audit & Supervisory Board Members,
and Executive Officers
76
Main Financial/Non-financial Data
(Quinquennial Data)
Corporate Profile and Stock Information
Business Sites

78
80
81

Introduction of Communication Tools
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.

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

Inquiries regarding this report
Corporate Planning Department
Corporate Communication Group

Sustainable Development Goals (SDGs) are international targets 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

2020

SDGs (Sustainable Development Goals)

タキロンシーアイグループ 統合報告書

Tel: +81-3-6711-3718
Fax: +81-3-6711-3712

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C.I. TAKIRON Group Integrated Report 2020

Message from Top Management on Integrated Report

Providing a Quality Workplace
for a Better Life
We have formulated the Better Life Management Declaration as
the most vital mission of management based on the belief thatproviding a quality workplace to offer a better life in turn fosters
growth of the company.

4

C.I. TAKIRON Group Integrated Report 2020

The Better Life Management Declaration and
the Post-Corona Age
Using its 100th anniversary as a milestone, the C.I. TAKIRON Group announced the Better Life Management Declaration to provide a quality workplace to offer a better life to our employees and their families
toward the next century of business in 2019. Then, in early 2020 while working on that important management policy for the company, COVID-19 became a pandemic worldwide and as a result we face a seriesof challenges: working from home, teleworking, suspending all dining functions with people inside andoutside the company. This has resulted in the creation of a business environment that changes the way
people work regardless of their intentions.
I was surprised that so many work styles designed to avoid spreading the virus match up with the work
style reforms in our Better Life Management Declaration!
We have been blessed with the opportunity to try out different approaches to this extent to make thelives of employees and their family members more fulfilling. Benefits include time spent with family created
due to working from home, the reduction of the physical burden on employees by not having to commute
to work, and the effective use of time that used to be spent for commuting. In terms of management costs,
we experienced changes to our work style and new expense structure that we had never imagined, including the reduction of business trips through web conferencing and reduction of office space by allowing
employees to work from home.
Since economic conditions in this society have reached a level of challenges that none of our generations have experienced, it is very difficult for C.I. TAKIRON management in fiscal 2020 started without any
conviction regarding what business conditions will be like to influence the companyʼs future prospects.
In 2019, three years after C.I. TAKIRON was born, the company declared, in the Better Life Management
Declaration, that it would create a new corporate culture, moving away from the corporate culture of the
Showa and Heisei Periods. However, we cannot say for sure how corporate life will change during the new
Reiwa Period. This was when all people experienced various work styles to prevent the spread of infection.
I think this has allowed us to find some useful hints for making our lives more fulfilling in the future. The
enrichment of employeesʼ lives and growth of the company must be able to occur together. Our new corporate culture that emerges from it must meet the new demands of our business partners as well as thedemands of society.
The C.I. TAKIRON Group aims to solve social issues through business activities centered on Materiality(priority issues), including the Better Life Management Declaration. We want to have a corporate culturethat fulfills its responsibilities, as it has done over the last 100 years of its history, and I believe this company
has a role to play in the rapidly changing environment.
Continuing from fiscal 2020, all C.I. TAKIRON Group employees will do their utmost to ensure customer
satisfaction in all areas, including new product development, high-quality products, services, and delivery.
I look forward to the continued support and guidance of our stakeholders in fiscal 2020 in a new global
business environment and a work style environment never experienced before.

Director Chairman
Yosuke Minamitani

5

C.I. TAKIRON Group Integrated Report 2020

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 ◆ Former C.I. Kasei ● C.I. TAKIRONFounder

Sataro Takigawa

1970

Sataro Takigawa establishes Takigawa Celluloid Plant in Katae, Ojimura-Oaza in the Higashi-Nari Districtof Osaka (Ikuno-ku, Osaka today).

1960
1961

1930

● Takiron Chemical Co., Ltd. islisted on the Second Section of1919 Founding

the Osaka Securities Exchange.

1935● Takiron Chemical Co., Ltd. starts● Takigawa Celluloid Plant con-structs the new Aboshi Plant in
Mitsu-cho in the Ibo District of
Hyogo Prefecture (Mitsu-cho,
Tatsuno City today).

1919● Company begins the

manufacturing polycarbonate

1971◆ Hama Kasei Co., Ltd. and Kobe

Resin Co. Ltd. merge to form C.I.
Kasei Co., Ltd. (800 million yen incapital).

1972● Takiron Chemical Co., Ltd. starts

the sale of polypropylene waste
water drainage basins.

plates.

1963◆ Yokohama Rubber Co., Ltd. (Yo-sale of remanufactured

kohama Rubber Company, Limit-

celluloid.

ed today) establishes Hama Kasei
Co., Ltd. as a joint capital venturewith the Zeon Corporation and● Takigawa Celluloid Plant

Doll made from
celluloid sheets

other Furukawa Group companies

incorporates under the nameTakigawa Celluloid Co., Ltd. (3million yen in capital),Founding President and Representative Director Tsunezo Nishida.

1955● Takigawa Celluloid Co., Ltd. be-gins the sale of TAKIRON Platerigid vinyl chloride sheets.

1928● Takigawa Celluloid Plant

begins sale of pearl sheets(celluloid sheet with a(473 million yen in capital).

1964

1973
● Takiron Chemical Co., Ltd. listedon the First Section of the Tokyo
Stock Exchange.
● Takiron Chemical Co., Ltd. changes its name to Takiron Co., Ltd..

◆ Hama Kasei Co., Ltd. constructs

1977

the new Shiga Plant in Ishibe-cho◆ C.I. Kasei Co., Ltd. starts thein the Koga District of Shiga Prefecture (Konan City today).

sale of hydrophilic water sealingmaterials.

1979◆ C.I. Kasei Co., Ltd. starts the sale1958of heat-shrinkable films.

● Takigawa Celluloid Co., Ltd.

starts manufacturing rigid vinyl
chloride corrugated sheet using
an extrusion process.

pearllike luster and color).

1959● Takigawa Celluloid Co., Ltd.

changes its corporate nameto Takiron Chemical Co.,
Ltd. and established a corporatelogo.

Pre-war fountain pens made frompearl sheets

1919
Former Takiron

1930
Former C.I. Kasei

1965◆ Hama Kasei Co., Ltd. starts man-ufacturing agricultural vinyl film.

1960

C.I. TAKIRON*Net Sales 1935 to 1986: Non-consolidated, 1987 to 2019: Consolidated

6

1970

C.I. TAKIRON Group Integrated Report 2020

2010

2019

2010, 2011

2000
1990
1980

1992

1980

1993

◆ C.I. Kasei Co., Ltd. starts the saleof agricultural polyolefin film.

● Tokyo Head Office moved to

Shinagawa Intercity Tower A(Minato-ku, Tokyo) and Osaka
Head Office moved to North
Gate Building (Kita-ku, Osaka)
and integrated Group companies in each area.

2000● Takiron Co., Ltd. constructs the

new Ibogawa Plant in Ibogawacho in the Ibo District of
Hyogo Prefecture (Ibogawa-cho,
Tatsuno City today).

2016● Awarded the 2016 Low Carbon

Challenge Cup Minister for theEnvironment Prize (Corporate
Division Gold Prize) for promoting reduction of the carbon
emissions by creating buildingthat make use of natural lighting by using Lume Carbo.

● Takiron Co., Ltd. establishes its◆ C.I. Kasei Co., Ltd. starts the salecorporate color.

of Belbien self-adhesive decorative film.

◆ C.I. Kasei Co., Ltd. starts thesale of BONLEX decorative resin
laminate sheets.

1982◆ C.I. Kasei Co., Ltd. starts the saleof Binon Hydrotite hydrophiric● Takiron Co., Ltd. starts the sale of

FM Plates, which are plastic plates
conforming to the FM standards.

2017● ◆ Takiron Co., Ltd. and C.I. Kasei

Co., Ltd. undergo management integration and change
the corporate name to C.I.
TAKIRON Corporation.

2005

water sealing materials.

● Takiron Co., Ltd. starts the sale1985of the new Jet Line rain gutter
system.

● Takiron Co., Ltd. starts the sale ofpolycarbonate corrugated sheets.

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
sound insulation and slip-resistant flooring material for stairs.

2007● Takiron Co., Ltd. starts the sale

2019

1989
◆ C.I. Kasei Co., Ltd. starts the sale2009

of micro motors.

Sales(Billions of Yen)
160

of Lume Carbo large polycarbonate plastic double-layer panels.

● Received Gold Award at Dowʼs

140

2019 Packaging Innovation
Awards for SANZIP Sensory.
● C.I. TAKIRON celebrated the100th anniversary of its founding.

120◆ C.I. Kasei Co., Ltd. starts thesale of whiteboard sheets.
100

1999
◆ C.I. Kasei Co., Ltd. constructs

the new Okayama Plant in Niimi
City, Okayama.

80

60

40
２
※

１
※

20

1980

1990

2000

*1 Total from November 21, 1986 to March 31, 1987 due to change in the accounting period*2 Total from October 1, 1989 to March 31, 1990 due to change in the accounting period

7

2010

0
2019 (Fiscal Year)

C.I. TAKIRON Group Integrated Report 2020

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

FY2019Net Sales
consolidated

Operating Profit¥139,432

Year-on-year
Rate
Other

¥531 million
0.4 %million

Down

7.4

％

Construction
Materials Business¥46,310 million
33.2 %

Down

18.8

％

Other

Construction
Materials Business¥66 million
2.5 %¥3,338 million
45.3 %¥1,155 million
15.7 %¥19,684 million
14.1 %¥17,267 million
12.4 %

millionSpecialty Films BusinessSpecialty Films BusinessHigh Functional
Materials Business¥7,372High Functional
Materials Business

Net Sales¥1,313 million
17.8 %

Environmental Materials
Business

Operating Profit

Environmental Materials
Business¥55,639 million
39.9 %¥1,381 million
18.7 %

Note: "Other" consists from business segments that are not covered in the reported segments and includes sales of testing equipment.

8

C.I. TAKIRON Group Integrated Report 2020

Small-scale Rainwater Storage
and Filtration Tank Materials

Construction Materials BusinessHousing Materials Business/ Flooring and
Decorative Materials BusinessWe comprehensively create urban spaces andprovide future-oriented safe and comfortableliving environments.
We of course provide safety and durability but also
have a broad track record which has earned a high levelof trust in the construction field where aesthetics andcomfort are essential. Our wide-ranging product lineup
supports comfortable living and urban environments.

Catch
BasinsFlooring for Condominium Translucent Plates(Polycarbonate Plates) Multi-layered Plates
Corridors

Environmental Materials Business
Agriculture Business/ Infrastructure Material BusinessWe propose optimal environment with ourwide array of agricultural materials and contribute to building, maintenance, and improvement of a safe and secure social infrastructure.
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 functionality and safety ofsocial infrastructure according to the various applications and purposes.

Howell Pipes(Civil Drainage Pipes)

Sky 8 Fog and Mist Prevention/Resin-coated Steel Stakes

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

High Functional Materials BusinessHigh Functional Materials BusinessWe support the growth of next-generation industrial fields through our advanced material
processing technology.
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

Semiconductor production equipment

Micro Motors

Specialty Films Business
BONSET Business/ SANZIP BusinessWe offer heat-shrinkable films and a wide array of high-precision zippers to meet customer
needs.
Our internationally-recognized, advanced film technology allows the optimal design, resulting in beautiful product labels that improve product value andpackaging films which meet the demand for highhermeticity.
Shrink Wrap Labels for Bottles

9

Zipper Tapes

C.I. TAKIRON Group Integrated Report 2020

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

150,650

139,432

FY 2018

FY 2019

Although we focused on our strengths tostrengthen the growth and profitability ofthe entire Group, the production activity ofthe entire manufacturing industry slowed
down due to sluggish exports and slowdown
in capital investment, and backlash after thesettlement of disaster recovery demand andspecial demand for tax increases, causing
sales to decrease by 7.4% year-on-year.

Ordinary Profit (Millions of Yen)

9,200

7,611

FY 2018

FY 2019

Point

Although our gross profit margin improvedby 0.6% due to efforts to reduce manufacturing costs through structural reforms, theimpact of decreased sales was large, resulting in ordinary profit to decrease by 17.3%
year-on-year.

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

6,391

13,091

FY 2018

FY 2019

Point

Due to the transfer of fixed assets at a consolidated subsidiary, current net Income attributable increased significantly and reacheda record high, resulting in a 104.8% year-onyear increase.

Current Net Income Per Share (in yen)

65.62

134.47FY 2018

FY 2019

Point

Current net income per share also increased by 68.85 yen from the previous year
due to current net income attributable tothe owners of parent reaching a record high.

Capital Investment (Millions of Yen)

7,430

12,388FY 2018

FY 2019

10

Point

We continued to invest in improving major
product production in each business segment
and also integrated core systems to makework reasonable. Such activity engagementin capital investment increased the amountby 167% year-on-year.

C.I. TAKIRON Group Integrated Report 2020

Energy Consumption Rate (GJ/Manufacturing Ton)
Point

13.0

12.2

FY 2018

FY 2019

Although production for Group companies
decreased on a non-consolidated basis due
to implementation of production increase
countermeasures and energy-saving measures, the energy consumption rate for eachGroup company as well as for the entire
Group decreased due to measures including
the implementation of energy-saving measures and the reorganization production bases. (-6.2% compared to FY2018)

Unit CO2 Emissions (t-CO2/Manufacturing Ton)

0.63

0.55

FY 2018

FY 2019

Point

We reduced our unit CO2 emissions factor
as a result of energy savings activities anddue to contracted power companies having
lower CO2 emissions factors than in FY2018.
(-12.7% compared to FY2018)

Water Consumption (Thousand m3)

1,176

1,053

FY2018FY2019Point

Water consumption decreased due toidentifying area where leakage was occurringand carrying out necessary repairs or replacing pipes. (-10.5% compared to FY2018)

New Female Graduate Employment Ratio (%)*

28.6

54.5

FY2018FY 2019

Point

We hired 11 new graduates (including six females) in contrast with our employment planin which we planned to hire 15 new graduates(five females), and our female employment ratio increased compared to fiscal 2018.

Rate of Paid Leave Taken by Employees (%)*
Point

62.4

91.2

FY 2018

FY 2019*Non-consolidated figure for C.I. TAKIRON

11

The rate of paid leave taken by employees
increased drastically compared to fiscal 2018as a result of encouraging initiatives for theemployees to take paid leave on a strategicbasis and the adoption of a financial incentive program to encourage employees totake paid leave.

C.I. TAKIRON Group Integrated Report 2020

fiscal 2019.

The worldwide spread COVID-19 starting in the fourth quarter

In 2019, we celebrated the 100th anniversary since our foundingof fiscal 2019 has created significant economic and social challeng-in 1919 as Takigawa Celluloid Plant, which is the original form of

es that continue to this day.
I would like to express my deepest sympathies to all those affected

Takiron founded in Osaka in 1919. In order to fulfill our mission

by COVID-19 as well as their families. Also, I would also like to ex-

as a company that has been in business for 101 years, C.I. TA-press my deepest gratitude to all the medical professionals and other

KIRON must continue to be a company that is needed by soci-relevant personnel who are working hard to maintain the medical

ety. Therefore, we need to solve the issues that we see in front

system and to everyone involved in work that supports our lives.

of us, promote change, and continue bringing about innovation.
As business conditions become more complex, it is clear that sustainable improvements in corporate value cannot be achieved
without the innovation of products, technologies, production, andLooking Back on a Year of Reformorganizations. Therefore, the only things that are important are
taking on challenges and implementing measures for success. It is

Starting with the US-China trade friction, the consumption tax

my responsibility as President to lead the way to further structural

hike in Japan, natural disasters including typhoons, economic

reforms and environmental improvements such as investment instagnation and social unrest caused by the spread of COVID-19

order to take on bold challenges.

made fiscal 2019 a year during which the situation surrounding

Looking back on the past fiscal year, I strongly feel that theour company changed rapidly. It was also a year we face full of

crucial moment for reform of C.I. TAKIRON in its newest form ismajor reforms aimed at sustainable growth. I believe that we were

here onward. The foundation for development is ready to create

able to complete the turbulent 2019 fiscal year without making

future profits and new value. Our next step is to find an answer

any serious issues thanks to the support of our customers, businessto the question: how will we continue to innovate? These ideas

partners, our employees and executives.

are planned to be reflected in the next medium-term management

Structural Reform is the first step toward change. C.I. TAKIRON,

plan that will start in fiscal 2021 and will define what the Group

which was created from the merger of Takiron and C.I. Kasei threewants to become 10 years from now, and proceed to formulate

years ago, was not free from challenges specific to an integrated

the next medium-term and through back casting.

company: it has overlapping functions and organizations, distribu-

On the other hand, as for business performance in fiscal 2019,tion of production bases and sales routes, differences in personnel

the production activities of the entire manufacturing industry, in-systems and core systems, and exploration of new areas. Despite

cluding our company, remained sluggish due to continued slowing

these challenges, I believe, by addressing each of them over theexports and slowing capital investment against the backdrop of

past three years, that we were able to aim for structural reform in

the US-China trade friction. Income and profit decreases were un-

12

C.I. TAKIRON Group Integrated Report 2020

Top Message

Accelerate Transformation
Continuing to challenge and putting things into

practice to bring about innovation useful for society.
A new step for C.I. TAKIRON in its 101th year.

Representative Director President

Kazuya Saito

avoidable in all our business segments as a result of the reactionengineering projects, production adjustments, and other factors. In

after the special demand for tax increase, stagnation in personal

addition, it is predicted that production activities will decline over-consumption due to a series of natural disasters such as torren-

seas due to various regulations issued by the government of eachtial rains and typhoons, and the rapid spread of COVID-19, whichcountry. With that said, unfortunately the financial results for theseverely constrained economic activities. As for net income, how-fiscal year ending March 2021 are also expected to continue toever, the current net income attributable to owners of parent washave a grim outlook.

13.091 billion yen, the highest ever recorded for the Group due

Fortunately, however, the results of recent structural reforms areto the extraordinary income from the transfer of fixed assets ofgradually beginning to take shape. Furthermore, even if it result-

DAIPLA CORPORATION, a consolidated subsidiary. In line with thised from the sale of fixed assets, it is a fact that we were able torecord high profit, we will add 10 yen to the 2020 stock dividend

achieve record high profits at the milestone of the 100th anniver-to commemorate the 100th anniversary of our founding.

sary of our founding, and we are trying to regain based on this

Although the entire global economy was sluggish in the back-results and highest profits resulting from these reforms. We will

ground, we take it seriously that the operating profit of our coremake bold and steady progress in line with our six-item manage-

business fell in all segments. With the end of the COVID-19 pan-ment policy so that fiscal 2020 will be a memorable year in which

demic being uncertain even after entering fiscal 2020, I predict

we will adapt to the major changes in the environment facing thedomestic demand for processed plastic products to decline tem-Group through our own reforms.

porarily due to delays and interruptions in construction and civil

Main Business Results Indicators for FY2019

FY2020 Management Policy(Millions of Yen)

Net Sales

FY2018Results

FY2019Forecast

FY2019Results

Compared toprevious year

150,650

151,000

139,432-11,218

Operating Profit

9,080

9,300

7,372

-1,708

Ordinary Profit

9,200

9,400

7,611

-1,589Current Net Income
Attributable to the
Owners of Parent

6,391

13,50013,0916,700

13

1. Improve fundamental profitability by concentrating our strengths
2. Promote a next-generation growth strategy
3. Accelerate international business development
4. Put the Better Life Management Declaration
into practice
5. Expand business activities taking into
account SDGs
6. Engage in comprehensive compliance andrisk management response

C.I. TAKIRON Group Integrated Report 2020

Top Message

Medium-term Management Plan
Progress and Vision for the Next
Medium-term Management Planof the former Tokyo factory that we owned in Ibaraki Prefectureis also a result of reforms in the growth sector. The new plant
has room for expansion and if the production line is to be further
expanded in the future, it is expected that the management planachievements in the growth sector will be in sight.

In the Good Chemistry Good Growth 2020 medium-term man-

In our overseas business, we have determined that the markets

agement plan, we have promoted various reforms based on thefor products including BONSET AMERICA CORPORATIONʼs shrink

guidelines of the plan. Especially with the completion of the de-films and BONLEX EUROPE S.R.L.ʼs decorative films are expected tolayed integration of core systems, we became able to determine

grow in the future, meaning that we will continue to make capi-

the profit earning capacity, competitiveness, efficiency, and poten-

tal investments in relevant businesses as a growth sector. Throughtial of each business with a same standard. I believe that a greatthese efforts, the profitability of our core business is steadily im-

result will be a dramatic increase in work efficiency.

proving. Considering the current situation, including the external

In the current medium-term management plan, our businessenvironment such as the COVID-19 pandemic and friction between

is classified into three areas: mature sectors, growth sectors, andthe United States and China, it is undeniable that the achievement

emerging sectors. We are aiming for development in each of theseof all goals is extremely difficult. However, we will continue to work

sectors. In mature sectors and growth sectors, we promoted rational-

as hard as possible during fiscal 2020, the final year of the medi-

ization through consolidation of our production bases. For example,

um-term management plan.

the production of polycarbonate products, which had been spread

Furthermore, for business expansion in new sections, we aggres-among multiple factories and group companies, has been consolidat-

sively promoted mergers and acquisitions and capital alliances as a

ed to the Ibogawa Office. As a result of building the new production

growth strategy from a long-term perspective. In order to continuesite complex and processing facility nearby, we are now able to re-moving into the mobility industry, which is said to have entered aspond to requests for items that we previously could not deliver on it.

period of change once every 100 years, we will promote mergers

I believe that vacating Matsudo Plant of DAIPLA CORPORATION,

and acquisitions and capital tie-up efforts. And in order to speed up

a consolidated subsidiary, constructing a new factory on the site

execution, we have set up the Growth Strategy Promotion Group,14

C.I. TAKIRON Group Integrated Report 2020

the achievement of the SDGs. These four value points are: safety

a new specialty section within the Corporate Planning Division.
On the other hand, as a reform of organizations related to newand security, comfort and peace of mind, resilience, and the envi-

sectors, the R&D department, which was previously headed by theronment. The creation of any of these four value points is closely

Chief Operating Officer of the Corporate Planning Division, will be

related to the industry in which we are in. Considering the frequentchanged to an organization that is under the direct control of theoccurrence of natural disasters in 2019 and the current COVID-19

President from fiscal 2020 so that various business decisions can bepandemic, I would like drive ourselves to contribute to disaster pre-made quickly. From our experience, we are fully aware that it is not

vention, mitigation, and regional resilience through our business,easy to create products with new values, so we are targeting theespecially with safety and security and resilience in mind, and real-

mobility industry, which is likely to undergo changes in the futureize value in society that leads to solving social issues.

and can expect returns commensurate with investment. I would like

Concerning the environment, we deeply acknowledged our “re-to steadily improve our innovation capabilities while narrowing downsponsibility of manufacturing” as a manufacturer, and clarified ourand considering alliances with companies that can provide support

policy of contributing through our products and services to thewith product technologies and skills that we do not fully possess.

solution of environmental problems and the social issues that result

In the Good Chemistry Good Growth 2020 medium-term man-from them. In addition to thorough implementation of the basic

agement plan, I intended to clearly indicate the direction in which

3Rs (Reduce, Reuse, Recycle) as a methodology, we will continue

we should proceed and proceed in that direction. However, I haveto focus our efforts on the development of environment-friendly

the impression that the timeline for initiatives has shifted slightly.

products in regard to the materials used and the manufacturing

We will take over the work left over from this period in the next

process, being sensitive to changes in user needs due to efforts tomedium-term management plan which starts in 2021 and aim to

reduce greenhouse gases called for by the Paris Agreement andrealize the plan without surrender.

heightened environmental awareness.

Furthermore, in formulating the next medium-term manage-

As a preliminary step to put related efforts into practice, we ex-ment plan, we will build a plan for the next three years, looking at

panded activities designed to foster awareness of the SDGs among

10 years from now when the various reforms and innovations weall Group employees. In addition to sending my own message toare currently working on will show results.

employees under the title “2030 SDGs - My Personal Challenges,” Ialso created a video to promote understanding of the 17 goals and
169 targets that comprise the SDGs which was provided on theintranet, used in employee training, etc.

Expanding Business Activities
Taking into Account SDGs
(Sustainable Development Goals)

Furthermore, we have established Waterside Clean Aid which isan activity based on the SDGs for the entire Group to participate
in as a management goal for fiscal 2020 and have started its implementation. This activity aims to contribute to solving the marine
plastic problem, which is a social issue, through cleanup activities

Almost five years have passed since the SDGs were formulated

and environmental improvement activities along coasts, rivers, andin December 2015, and there are mere 10 years left until 2030, thelakes nationwide. It is an activity that involves high employee en-

SDGs target year. As a company committed to contributing to thegagement and I want to see it continues for a long time.

achievement of the SDGs, we defined 10 Materiality items (priority

In addition, in order to raise awareness of the issue in the C.I.

issues) that will contribute to the SDG initiatives in October 2019

TAKIRON Group as a whole regarding marine plastic pollution, an

in order to take specific action. In fiscal 2020, we will establish

expert from the Japan Plastics Industry Federation was invited tostandard targets (KPIs) and process charts to accelerate our efforts.

the Group Presidentʼs Meeting held in November 2019 as a lec-

In addition to the vague call for contributing to SDG initiatives, weturer to speak about the marine plastic waste issue. We are also

will specifically decide on which of the 17 goals we will work on. I

promoting other activities as well to create awareness.

now recognize that we have entered that stage.

Although I think it will take some time before the results of these

The 17 SDGs are centered on two major basic principles: “Leave

activities for creating awareness about the issue show up, I was

No One Behind” and “Transforming Our World.” I feel that the idea

able to share my determination with many employees to contrib-“Transforming Our World” is in line with the achievement that lies

ute to the achievement of the SDGs goals through our business.

past the reform that we are aiming for right now.
At the same time as defining the Materiality items, we also defined the value points that should be created by contributing to15

C.I. TAKIRON Group Integrated Report 2020

Top Message

Human Resources, Our Engine for
Reform and Promotion of the Better
Life Management Declaration

childcare leave, including those of male employees, both greatly
exceeded the targets. Therefore, I feel that we are moving forward
in fostering a work environment and corporate culture that realize
diverse work styles.
In regard to support for purposeful work, we have introduced a ca-

I believe that each and every employee is responsible for mak-reer interview system aimed to support enhancing employee motiva-

ing up the driving force, the engine behind the numerous reforms

tion and sustainable growth through a human resources development

promoted by C.I. TAKIRON. With the management integration thatplan that takes into account the abilities and aptitudes of employees.

occurred three years ago serving as a catalyst, we defined what

However, a system does not necessarily guarantee that employees al-

the ideal human resources for C.I. TAKIRON should be and made it

ways find it worthwhile to work. I would like to enhance the motiva-

the fundamental philosophy behind human resource development.

tion of each and every employee by having management and leaders

Based on this, we have developed an employee training system totake the initiative in deepening communication with them.

provide them with various growth opportunities.

Regarding support for better health, activities such as the On-

In addition to such an organizational design, the concept of Idealline Smoking Cessation Program aiming at achieving a smoking

Human Resources is becoming more widespread among employ-rate of 30% or less among our employees and Body Improvement

ees. The Ideal Human Resources concept calls for, among other

Program for specific health guidance and implementation of pro-things, employees to “Be Proactive.” As this means to “think ahead

grams directly to those applicable were carried out. Such programs

and act in advance in an active manner”, when COVID-19 began

were evaluated and the company was recognized as an excellent

to spread throughout Japan, our factory employees came up withcorporation for health management under Health & Productivity

their own ideas to make face shields and partitions to prevent

2020 under the large-scale corporation category by the Ministry ofsplashes and donated them for use at help windows of nearby city

Economy, Trade and Industry. From fiscal 2020 onward, we plan tohalls and reception counters at hospitals. In addition, still ongoing,

further strengthen our Better Life Management Declaration initia-

even for the COVID-19 infection prevention measures for several

tives by incorporating the elements of health management advo-

months from February 2020, each plant has actively implemented

cated by Nonprofit Organization Kenkokeiei.

various forms of ingenuity according to conditions, resulting in theability to maintain 100% of the production operation during the

FY2020 Target

FY
2019

FY
2018

period. In this way, I feel that employees are steadily developing inline with the Ideal Human Resources concept.
On the other hand, the Better Life Management Declaration ex-

Acquisition Rateof Paid Leave for
Employees of 80% orHigher

91.2%

62.4%

Acquisition Rate ofChildcare Leave forMale Employees of
75% or Higher

90.6%

31.0%

Regular Medical
Check-Up Participation Rate of 100%

100%

98.1%

Smoking Rate of 30%
or lower

35.2%－

presses our ideas as a company to employees who are working hard
every day based on the idea that making each employeeʼs life fulfilling
leads to the sustainable growth of the company. In this declaration,
we advocate three initiatives for building a quality workplace: support
for diverse work styles, support for purposeful work, and support for
better health. We are striving to cultivate a new corporate climate.
As for support for diverse work styles, we have made rapid progress with introducing measures planned and prepared as part ofSpecific Health
Guidance Implementation Rate of 60% orHigherwork style reform, such as telework and DX (digital transformation), as countermeasures against the spread of COVID-19. In theInitiatives
Adoption of a financial incentive program to encourage employees to take paid leave● Quarterly disclosure of information on paid leave taken in all
department
●

●

40.9%

－

●

Adoption of a short-term childcare leave system
Guidance for employees taking
childcare leave as well as fortheir managers●

Recommendations to employees that have not received a
medical check-up to do so●

Online smoking cessation program●

Make employees aware of the
Body Improvement Program(specific health guidance initiative) and recommend that they
follow it (if applicable)case of our company, we have been successful in identifying issues
in implementing telework and flexibly responding to department
managers, and the new normalization of telework is becoming es-

Strengthening Group Governance asa Management Foundation Reformtablished as a work style reform. In the future, we plan to continue
discussing post-COVID-19 work styles during Better Life Management Declaration Promotion Committee meetings and promoting
the introduction of various systems that utilize IT technology.

Naturally, we have also developed measures that give attention

In addition, as a result of enhancing the welfare and benefit sys-

to reform in the management base such as governance and risk

tem, the rate of employees taking paid leave and the rate of taking

management. The point of reform is to transition to a group gov-

16

C.I. TAKIRON Group Integrated Report 2020

ernance system that takes the entire Group into account.

fiscal 2020 were identified as: mass infection/epidemic risk, climate

As a member of the ITOCHU Group, we are working to strength-change risk, IT security risk, and compliance and human rights risk.

en our independent corporate governance system as a listed com-

In the current situation where we all face natural disasters occur

pany, taking into account ITOCHUʼs governance policy. In April

rather frequently and the risk of infectious diseases, the human2020, in order to clarify management independence, we increased

mobility is greatly restricted and considering that IT technology

the number of Outside Directors and Outside Audit & Supervi-makes up for it, the three risks of mass infection/epidemic risk,sory Board Members who can evaluate our management fromclimate change risk, and IT security risk will remain important risks

third-party perspectives. As a result, the ratio of independent Out-for some time to come. By accepting the existence of each risk andside Directors serving on the Board of Directors has been increased

controlling it systematically and effectively, we will try to avoid or

to share more than 1/3 of the board members, resulting in the

reduce losses, and make the utmost effort to continue businesssystem becoming more transparent and objective than ever before.

and improve corporate value.

In addition, one female Outside Director and one female Audit &Supervisory Board Member have been appointed which has also
increased the diversity of the Board of Directors. Furthermore, inFurther Promote ESG Management
for the Next 100 Years of Businessorder to take a birdʼs eye view of the overall management conditions of the C.I. TAKIRON Group and to make swift and appropriate decision-making and perform agile management, we haveintroduced a Group Executive Officer System and appointed threeIn fiscal 2019, we celebrated the 100th anniversary of C.I. TAKIRON

Executive Officers from the Group.

which served as a valuable opportunity to reaffirm the history of ourtechnology providing value to society and of solving social issues.

Regarding compliance, based on continuous compliance education activities for all employees, we have established various sys-

The only way for the C.I. TAKIRON Group to evolve on the basis

tems, such as revision of the compliance program and thoroughof this tradition is to continue to take on the challenge of reform,

implementation, expansion of application of reporting counters toeven if the tradition is broken in a good sense. The challenge isoverseas groups, expansion of harassment consultation counters in

how we change in the coming 10 years for the next 100 years for

the Group, etc. We are actively incorporating outside perspectives,

business. In that respect, the SDGs to be achieved in 2030 serve assuch as by holding compliance patrol seminars jointly with ITOCHU.

optimal ideas with a roadmap that fits the Group. With social issues

And now, the need for reform has increased, especially in risk

at the center of our awareness, we aim to be a corporate group in

management. The spread of COVID-19 served as a big opportunity

which each and every employee of the group embodies change. At

to drastically review our risk management. In fiscal 2019, discus-

first, we must carry out take on challenges and implement relatedsions and initiative formulation work were carried out related toinitiatives in the next medium-term management plan so that we

important risks applicable starting from fiscal 2020. As a result of

can present our new Group with significant changes after 10 years.

identifying and reviewing risk items, the four important risks in

You can expect many great things from C.I. TAKIRON.

17

C.I. TAKIRON Group Integrated Report 2020

Medium-term Management Plan

Medium-term Management Plan

Good Chemistry Good growth (2017-2020)

Based on the basic management policy of the medium-term management plan with fiscal 2020 as the final year, in fiscal 2019 (the thirdyear of the plan), the polycarbonate production system that involved three C.I. TAKIRON Group companies was consolidated to Ibogawa
Office as well as the idle land was reformed as the base for Howell pipe production (DAIPLA Tsuchiura Plant). We have steadily implemented measures for strengthening the growth potential and profitability of the entire group, such as measures to improve the production capacity of overseas production bases, adding value through compound technology as a foundation for new businesses, executing
strategic investments that will serve as a foothold in new fields such as mobility, etc. However, target large-scale mergers & acquisitions
have been delayed, and in the final year, an organization to support mergers & acquisitions was established within Corporate Planning
Division, and R&D Department was placed under direct control of the President, working to promote the acceleration of themes.

Basic Management Policy(1) Strengthen market
competitiveness(2) Create new business and (3) Pursue beneficial effects
develop new productsof the merger(4) Expand existing
business domains(5) Increase asset efficiency(6) Create a new corporate
cultureManagement Vision and the Road Map
Management Vision

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

FY 2018

FY 2019

FY 2017

Leading Companyof the Industry

FY 2020

Launch of the C.I. TAKIRON Group

100th Anniversary

New Sectors

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

Expand business domains and future
core businesses

Growth Sectors

Expand and strengthen business throughcapital investments

Expand the scale of existing
business domains

Mature Sectors

Enhance market competitiveness throughstructural reforms and a synergistic effectStrengthen
profitability

Management
Foundation

Reinforce the management foundation through human resource integrationand vitalization as well as spiritual awakening and operational efficiency

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

Support business expansion

C.I. TAKIRON Group Integrated Report 2020

Medium-term Management Plan

Growth Strategy

Strategic Investment
Amount of Strategic Investment

Sales (Millions of Yen)

¥180 billion

New Sectors● Actively participating in industrial re-organization

150,000

Endeavor in new businesses through M&A
Acquire businesses as future core businesses¥150 billion

Growth Sectors● Drive integration synergy● Actively inject management resources

100,000

Expand and strengthen existing businesses worldwide● Restructure existing businesses

Improve competitiveness through increased production and sales efficiency● Reform the management foundationof existing businesses0

20172020 (Fiscal Year)

Improve productivity through human resource integration and vitalization as well
as operational efficiency

Mature Sectors￥135 billion Mature Sectors
50,000Growth Sectors￥30 billion

New Sectors￥15 billion

200,000

Approx.

￥10
billionApprox.

￥8

billionApprox.

￥4

billionInvestment 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 andlong-term corporate value.

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

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 andstrengthens cost competitiveness.

Growth Strategy Topics

New Sectors● Strategic Investment● Investment aimed at having a synergistic effectGrowth Sectors

Mature Sectors● Improvement of the production capacity● Improving efficiency for producing poly-of overseas production bases

carbonate building materials

in technology development, including polymer
processing technology and functional compound technology development, and productdevelopment.
● Investment aimed at expansion into the mobil-

ity field and strengthening alliance with othercompanies

Approx. ¥2 billion*
C.I. TAKIRON Ibogawa Office● Reformation of production sites in the

Kanto Region
Approx. ¥800 million*
BONLEX EUROPE (Veneto Region, Italy)

System Enhancement

Approx. ¥2.7 billion*● Establishment of the Growth Strategy Promotion Group● R&D Department placed under direct control of the President

DAIPLA Tsuchiura Plant*Amount of investment

19

C.I. TAKIRON Group Integrated Report 2020

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.

Input

Business Model

Financial capital
Mission● Sound financial foundation

Ma
rke
tin
g

Intellectual capital● Various technologies - mix designcompetitive advantages

Human capital● Human resources with advanced

skills and know-how (involved in
manufacturing, technology,
development, sales, management, and global business)

Social capital

Value Chain● Our R&D system creates

Five Strengths

ca
gi
olo
hn
Tec
After
-sales Services

technology, equipment design
technology, fabrication technology,
and accumulated know-how

Polymer Processing Technology
Product Development and Design Capabilities
Customers Firstti o n(resins and steel materials)● Manufacturing bases/equipment

Trusted Relationships with Business Partners
Climate Leveraging Individualityduc● Raw materials

Pro

Manufacturing capitalnt

ment Philosophy
Manage
e
g
Sta
a
ss
tem
Me
e
t
en
a
r
t
po
r
nt
Co
elopme
v
e
Pro
D
cu
h&
re
arc
e
m
s
e
e
R

l

● A network connecting us withall stakeholders, including
domestic and foreign supply
chains that are built on trust

S ales● Brand strength cultivated fromincreased trust

Natural capital

Corporate Governance

Code of Conduct

Compliance
Risk Management● Natural resources and energy

Social Issues
Increasing frequency and intensity of natural disasters
Measures against infectious diseases/epidemics

Stakeholders● Decline in the working population● Labor shortages● Working environments

Diversity of lifestyles● Pursuit of convenience and prosperity

Growing complexity of labor issues● Work style reform

Aging society and declining birthrate

Shareholders and Other Investors

20

Customers

Diversity

C.I. TAKIRON Group Integrated Report 2020

OutputOutcomeConstruction Materials Business

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

Materiality
Source of Corporate
Growthous developmentof national lands● Realization of a

● Cultivation of a corporate

SafetyandSecurityrich living
environment

climate supporting value
creation● Evolution of Polymer

Processing Technology● Sound, prosper-

Environmental Materials BusinessRespect of Individuality

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

● Enhancement oflifestyleconvenience● Prevention andmitigation ofdisasters● Promotion of diversity

ComfortandPeace of Mind

● Better Life Management

Declaration

Medium-termManagement
Plan● Revitalization andResponsibilities toSociety● Handling of marine plastic

FY2020 Targets

pollutionenhancement ofsocial infrastructureHigh Functional Materials Business
Plastic Sheets, machining materials,
micro motors, magnetic materials, etc.

● Promotion of CSR

Consolidated Net Sales￥180 billion

procurement● Coexisting withsociety and theenvironment

Resilience*● Enhancement of● Reduction of environmen-

agricultural
productivity

Consolidated Operating Profit
tal impact￥12 billion● Expansion of environ-ment-friendly products● Resource andenergy savings

Management Platform● Comprehensive compliance

Specialty Films BusinessHeat-shrinkable films, zippers, etc.

and risk management● Decarbonization● Reduction of

response

Environment

waste● Enhancement of corporate

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

SDGs (Sustainable
Development Goals)
Sustainable Development
Goals (SDGs) are internationaltargets set from 2016 to2030 included in The 2030
Agenda for Sustainable
Development adopted at theUnited Nations Summit in
September 2015.

Deterioration of the global environment● Constraints of resources and energy● Handling of marine plastic pollution● Unstable agricultural production● Insufficient response to climate change

Business Partners

Local Communities/Society

Government and Municipalities

21

Employees

C.I. TAKIRON Group Integrated Report 2020

Materiality (Priority Issues)
Based on changes in social issues such as SDGs and social demands related to ESG (Environmental, Social, and Corporate
Governance), the Group has defined10 Materiality issues that should be prioritized, and formulated each KPI and annual target while incorporating opinions from external experts.
Moving forward, the entire Group will work toward sustainable value creation.

Process to Define Materiality1 I dentify and organize po-2

tential materiality items
that should be consideredC reate a materiality
matrix by prioritizing andweighting each potential
materiality item

3

Define the materiality
through a management
review

4

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 wellas 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 businessenvironment surrounding the C.I. TAKIRON Group and its stakeholders to examine how toengage in each issue in the future, such as the way in which to create corporate value, fromthe perspectives of risk and opportunity as well as the pros and cons in order to define a listof 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. TAKIRONGroup 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 orderto create the materiality matrix below.

We internally formulated an accurate mesh that indicates the correlation between each
item with a high importance and priority in the materiality matrix, and then ordered eachof these items by referring to the opinions of external experts, the SDGs, feedback fromshareholder meetings, and external CSR questionnaires in addition to other information.
We also refined the materiality to emphasize and prioritize as a corporate group after
considering changes 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 thefinal ten materiality items.

 R efine Materiality and establish
medium-term targets througha management review withmembers of supervising departments separately for each of
the 10 Materiality items

For the 10 defined items, each of the supervising department in charge within the company formulated goals, strategies, evaluation criteria, key performance indicators (KPI), andmedium-term target plan for each year with reference to the opinions of external experts.
It was decided after a review by management members.

22

C.I. TAKIRON Group Integrated Report 2020

Extremely High

Materiality
Matrix

㉒

⓱⓲⓳
⓴㉑

123
456
789
⓾

Importance to
Stakeholders

㉓㉔㉕
㉖㉗

⓫⓬

㉘㉙㉚

⓭⓮⓯
⓰

High

Extremely High
Importance to
the C.I. TAKIRON Group1 Better Life Management Declaration⓫ Cultivate a corporate climate supporting value creation⓴ Promote CSR procurement

2 Strengthen human resource development⓬ Enhance quality assurance systems㉒ Combat climate change㉑ Enhance corporate governance

3 Eradicate occupational accidents⓭ Provide attractive and distinct (special)
products and services

4 Promote diversity⓮ Improve customer satisfaction

5 Promote the active participation of
women⓯ Strengthen trusting relationships withcustomers

6 Promote the active participation of
disabled persons, senior citizens andforeign employees⓰ Strengthen sales power (problem-solving
capabilities)㉕ Implement chemical substance management and regulatory compliance (RoHS,etc.)

7 Advancement of polymer processing technology⓱ Reduce the environmental impact㉖ Ensure harmony with local communities⓲ Reduce the environmental impact throughout the entire value chain㉗ Promote social contribution activities⓳ Engage in comprehensive complianceand risk management response㉙ Pursue globalization

8 Expand environment-friendly
products
9 Handle marine plastic pollution⓾ Reduce and recycle waste㉓ Ensure disaster response and create a
Business Continuity Plan (BCP)㉔ Disseminate information and engage in a
dialogue with stakeholders㉘ Expand use of renewable energy㉚ Forge academic-industrial alliances andprovide academic support

10 Materiality Items Defined23

C.I. TAKIRON Group Integrated Report 2020

Medium-term Plan for Materiality
Materiality

1
Cultivate a Corporate
Climate Supporting
Value Creation

2
Advancement of
Polymer Processing
Technology

Goal

Strategies

Challenging Corporate Culture

Tangible

In such a corporate culture, the spirit of voluntarily and aggressively taking on new challenges without fearof failure will take root and will beinherited by all Group employees as
our “DNA.” The social value of thecompany is continuously improvedby the simultaneous and frequent
occurrence of taking on challenges
not only within the group but also
involving stakeholders.

Build systems and structures within the Group.
⇒ Build structures and incentive system that makes it easy to plan new
businesses, new products, and business improvements.
Intangible
Instill in all employees the idea of taking on challenges and to always be doing
something.
⇒ Conduct a survey to confirm to what extent the corporate culture where
employees take on challenges has permeated. Evaluate the level of permeation by checking the percentage of officers and employees who feelthat the level of permeation is high.

Reliable and PromisingTechnologies
Contribute to a sustainable society
through material compounds, fabrication, compounding technology,
and construction technology thatmaximize the various features ofpolymers.

● Strengthen research and development of new materials and technologies,
and provide new products that can contribute to a smart society and sustainable society.

Diversity & Inclusion● Strengthen in-house education to foster a corporate culture.
● Active recruitment for employees with various backgrounds and personalities.
● Enhance systems that make it easy for diverse human resources to workand establish an environment in which it is easy to use such systems.

3
Promote diversity

Respect the various values and differences of each individual to create
an environment where all people
can fully demonstrate their abilities.

4
Better LifeManagement
Declaration

5
Handle Marine Plastic
Pollution

Creation of a Quality Workplace
for a Better Life
Create a high-quality workplace
where each employee can work ingood physical and mental healthand live a fulfilling life.

Contribute to the Elimination ofMarine Plastic Pollution
Disclose relevant information toinitiatives designed to eliminate ofmarine plastic pollution.

● Improve work environment● Create a comfortable workplace where employees can choose their own
job, remuneration, work location, etc. according to their abilities andlife stage.
● Implement measures to create a workplace where people can work in astate of good physical and mental health.
● Improve understanding and utilize various systems.

● Promote awareness of all Group employees for participating in solving themarine plastic issue through their participation in volunteer activities andtraining.

* Considering the use of natural raw materials, name of the materiality “Evolution of Plastic Processing Technology” has been changed to “Evolution of Polymer Processing Technology”.

24

C.I. TAKIRON Group Integrated Report 2020

Evaluation Standards (KPI)

Medium-term Roadmap
1 year later (2021)

3 years later (2023)● Number of challenge promotion measures implemented during
the period(Specific measures will be created during this fiscal year)34● Survey-based evaluation of the extent the corporate culture
where employees take on challenges has permeated(Survey draft will be created during this fiscal year)

Disclosure in FY2021

Disclosure in FY2021● New Product Net Sales Ratio (%)(Benchmark data will be collected in FY2020)

Disclosure in FY2021

Disclosure in FY2021

35

50● Rate of Participation in In-house Training Classes Related to Diversity & Inclusion

100%

100%

Level of Understanding Regarding Diversity & Inclusion Identified
Through Surveys Conducted After Training

40%

60%

30%

30%

● Ratio of Female Employees in Management Positions-

1%● Ratio of Employees Who Return to Work After Leave

75%

80%

● Employment Ratio of Disabled Persons

2.50%

2.50%

Ratio of employees who feel that there
is a workplace environment and systems
established that make it easy to work

Disclosure in FY2021

Disclosure in FY2021

Ratio of employees who answered that they work actively

Disclosure in FY2021

Disclosure in FY2021

Level of system understanding

70%

90%

Continued

Continued● Number of Waterside Clean Aid Activity Participants(Total number of participants for the period)

300

1,000

● Number of Marine Plastic Related Events and Seminars Held
(Total number of seminars and events held for the period)

30

30● Number of Patent Applications● Ratio of New Female Graduate Employees (main career track)● Employee Survey Results● Recognition status as an excellent corporation
for health management25

Relevant Sustainable
Development Goals (SDGs)

C.I. TAKIRON Group Integrated Report 2020

Medium-term Plan for Materiality
Materiality

6
CSR Procurement

7
Reduce theEnvironmental Impact

8
ExpandEnvironment-friendly
Products

Goal

Strategies

Establish a Supply Chain That
Gives Consideration to Human
Rights and the Environment
Establish a fair supply chain thatgives consideration to human rights
and the environment through cooperation with our business partners(procurement and purchasing).

Create a Planet Where We Can
Continue to Live
Contribute to the environmental
protection of the planet by reducing the environmental burden of
the entire Group.

Ecological Development
Contribute to the realization ofa carbon-free society and a recycling-oriented society by designingand developing all products provided by the C.I. TAKIRON Group to beenvironment-friendly.

9
Comprehensive
Compliance and Risk
Management Response● Formulate CSR procurement guidelines for the entire C.I. TAKIRON Groupand promote further awareness of human rights and environment friendly
CSR in the supply chain.

● Comply with the latest global standards for global environmental impact
countermeasures (review roadmap as appropriate).

● Continuously improve technologies (including materials, evaluation, andsecondary processing technologies) for expanding the number of environment-friendly products* offered by the Group.
*Environment-friendly Products
Products that pass environmental impact assessment criteria during design review.
(our definition of “environment-friendly products”)● Serious Compliance Violations*To achieve zero serious compliance violation, promote the improvement ofcompliance awareness and knowledge of all Group employees.
* Serious Compliance Violations: Defined as cases that are considered aconcern within the C.I. TAKIRON Group Compliance Program. Cases thatare deliberated or reported on by the Compliance Committee.

Solid Compliance and Risk
Management
Aiming to be a company trusted
by society realize corporate governance through high-level compliance and risk management.

● Establish a risk management system based on risk management regulations, regularly identify important risks, formulate countermeasures, carryout year-round monitoring and reviews using PDCA cycle, and strengthen
the response to possible corporate risk in the future.

10
Enhance Corporate
Governance

Create Transparent Management
Create a condition in which management independence and fairness can be objectively recognized.

26● Improve the independence and diversity of the Board of Directors and optional committees.
● Actively disclose information on corporate governance.
● Consider and implement measures to enhance dialog with shareholders
and investors, and establish a system that can appropriately reflect theopinions of shareholders and investors.

C.I. TAKIRON Group Integrated Report 2020

Evaluation Standards (KPI)

Medium-term Roadmap
1 year later (2021)

3 years later (2023)● Request Rate for CSR Procurement Guidelines by Major Domestic
Business Partners(% of purchase base)

100%

-

● Request Rate for CSR Procurement Guidelines by Major Domestic
Business Partners in Overseas Group Companies(% of purchase base)

100%

-

Implementation of Business Partner Survey(Grasping the current level of business
partner agreement with CSR guidelines)

Level of Agreement:
100%

8% reduction

13% reduction● Environment-friendly Products▶ Number of Development Themes

10

15● Environment Related Awards-

Aim to receive anenvironment related
award by FY2025

100%

100%

0

0

80% or above

80% or above

At least once a year

At least once a year

85% or above

85% or above

Gathering data for formulation of guidelines in FY2022-

Financial Results Briefings

2 times a year

2 times a year

Meetings with Individuals

At least three times
a yearAt least three times
a year-At least once a year

● Level of Agreement with CSR Guidelines(Based on business partner survey)● CO2 Emissions Reduction Rate (compared to FY2018)● Compliance Related Education Implementation (% of companies)● Number of Serious Compliance Violations● Rate of Completion of Response to Important Risk Issues Within
Period (%)● Regular Important Risk Reviews (at least once a year)● Board of Directors Attendance Rate
● Formulation of Corporate Governance Guidelines● Number of Times Explanatory Meetings Were Heldfor Shareholders/Investors

Small-sized Meetings

27

Relevant Sustainable
Development Goals (SDGs)

C.I. TAKIRON Group Integrated Report 2020

Business Strategy

Construction Materials Division
We support comfortable living environments and urban spaces close topeople in the construction field where aesthetics, comfort and a co-existence with society and the environment are essential.

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

Business Description

Results of FY2019 Initiatives (Results and Issues)

The Construction Materials Division is comprised of our housing

In the polycarbonate building materials business, as part of thematerials business and Flooring and Decorative Materials Business,

integration of production and sales between group companies

dealing with materials that people are familiar with in residential life.

which has been promoted since fiscal 2018, we have completed

The housing materials business deals with peripheral materials forconsolidating production of polycarbonate products to the Ibogawa

water treatment, including rain gutters and drainage basin, which

Factory and promoted the optimization of Nippon Polyesterʼs FRP

are indispensable for housing construction, and polycarbonate build-business. Furthermore, we decided on the direction we will heading materials products that are widely used for daylighting found inin for establishing a sales company integrated with the functions

structures from residential facilities to warehouses and factories.

of the sales organization, building a foundation for more efficient

In the Flooring and Decorative Materials Business, we deal withmanagement. We also focused more on improving the efficiency offlooring materials offering excellent slip-resistant function for aquatic

operations within the division, implemented measures such as RPA

facilities, safety in apartment corridors, safety on stairs, etc., and beau-

adoption, and worked to implement work style reforms.

tifully designed decorative films that make room interiors look luxury.
With these two businesses at the core, within the C.I. TAKIRON

Development of Environmentally Friendly Products

group we have two sales companies with expertise in their respec-

In Europe, there is an increasing interest in environmental issues.

tive product markets, a manufacturer of advertising displays for

In response to requests from customers to increase the usage ra-convenience stores and parking lots in Japan, and a manufacturing

tio of recycled raw materials, BONLEX EUROPE S.R.L., which has

subsidiary of decorative sheet materials for European market in Italy.

a manufacturing base in Italy, supplies PET based decorative films
comprised of at least 50% recycled materials to major furniture

Market Environment

manufacturers. In the future, we will focus on securing sourcesthat can more stably obtain recycled PET materials in Europe and

The population decline due to the declining birthrate and aging

would like to develop them in an integrated form.

population in Japan has a direct impact on business conditions,such as the decrease in the number of new housing construction

Long-term Outlook

projects, causing the market for our living environment related(Environmental Considerations, Global Expansion, etc.)

products to shrink steadily. The problem of waste plastics, symbolized by marine plastics, is also becoming a structural problem ofThis division provides products that are closely related to peopleʼs

our industry. Under these conditions, by developing products withlives. In addition to supply safe and comfort products, we develop

enhanced functionality, such as light-weight alternatives to glass

new products which are lighter, helping to support an aging society,and products that provide natural light and heat insulation, we areoffer a higher level of performance, such as heat insulation in re-contributing substantially to improving comfort in peopleʼs lives.

sponse to climate change, and designs with excellent appearance.

We are also focused on product development that is suitable for

Regarding environmental issues, we will strengthen 3R technol-

the current environment, such as focusing on the 3Rs to realize theogy and system focused on recycling to establish a system capablecommercialization of recycled materials.

of contributing to a recycling-oriented society.
These directions we are headed in serve as extremely import(Unit: Millions of Yen)

FY 2018 Results FY 2019 Results

ant factors not only in the domestic market but also in overseas

Compared to
FY2018Net Sales

48,502

46,310△2,191

Operating Profit

3,458

3,338

△119

markets. While focusing on expanding into the interior business in
Europe where we already have a manufacturing base in Italy, weplan to further expand the stable North American market and themarket in China where demand is rapidly increasing.

28

C.I. TAKIRON Group Integrated Report 2020

Business Strategy
SWOT Analysis of the Divisionʼs Main Businesses● Polycarbonate fabrication technology● Overseas sales channels for housing material products● Number one in Japan for our polycarbonate building mate-● Expansion of the scope of the Building Energy Efficiency Act● Changes in lifestyles and concept of values● Increasing aging society and declining birthrate figures● Expansion into areas overseas where related business-es are undeveloped● Expanding demand due to improved living standards
in developing countries

Weakness

S W
O T

rial manufacturing capabilities● Our housing material product line holds a large share of the market● Top share in domestic slip resistant vinyl flooring market● Technical background of Decorative Materials by start-tofinish production in Japan● Overseas facility for production of decorative materials (Bonlex Europe)● Increase in long-life quality housing

Strength

ThreatOpportunity● Our Flooring and Decorative Materials Business is small

compared to that of major competitors● Limited overseas site development for our Flooring and

Decorative Materials Business● Our Flooring and Decorative Materials Business is not acomprehensive interior manufacturing business● Decrease in the number of new housing construction

projects● Rapid climate change● Influx of low-cost products from overseas● Market shrinkage due to Japanʼs population decline● Marine plastic pollution

Overview of Main Businesses
Housing Materials Business

Flooring and Decorative Materials BusinessWe provide housing material products to support comfortable

We provide flooring products that support safety walking, witha focus on slip resistant flooring materials that are specifically required to offer durability and stability under harsh outdoor conditions, and finishing material products for a wide range of areas
required as decorative materials. This contributes to the creation of
comfortable living spaces for indoor and exterior facilities.

housing and urban development centered upon housing materials,
piping and plumbing equipment, and polycarbonate building material products with superior characteristics from shock resistance,lightness, and light transmission properties and weatherability.

Market Conditions

Market Conditions

It is predicted that the number of new housing construction

Efficiency Act, response to climate change, and various needs, in-

In addition to the housing complex renovation market, there isalso demand in the new construction market for durable flooringproducts due to the requirement for longer lasting products. As fordecorative materials, due to lifestyle diversification, products withvarious functions as well as designs are required.

cluding those related to supporting healthy lifestyles.

Business Conditions

projects will decrease as Japanʼs population declines. In contrast,
demand for products that provide natural lighting is expected toincrease due to the Expansion of the scope of the Building Energy

proving the efficiency of our production and distribution systems.

Demand for flooring materials for corridors, balconies, and stairs inhousing complexes, which serve as the pillar of our flooring businesssector, remains steady mainly due to demand for housing complex renovations. In the decorative materials business sector, we are steadily expanding not only our supply of decorative materials to global furniture
manufacturers but also the interior business, including interior market
in new constructions and refurbished properties in Japan and overseas.

Future Priority Measures

Future Priority Measures

Business Conditions
With the aim of strengthening group management, we areconsolidating sales and production in the polycarbonate building
materials sector, strengthening our sales force and customer baseby unifying development, production, and sales processes, and im-

In the flooring business sector, as the demand for durability continues to grow, we will continue to pursue better solutions that cancontribute to further safety and comfort as a leading manufacturerof slip resistant flooring materials. As for the decorative materials business sector, we will work to develop environment-friendly
products focusing on recycled materials in order to contribute toa sustainable society. The creation of a sustainable society has become a topic of focus around the world.

We will further strengthen our polymer processing technology andquickly develop products that contribute to peopleʼs health and theglobal environment by taking advantage of the characteristics of resins.

Reference Project of Rain Gutters

Reference of installed flooring

29

C.I. TAKIRON Group Integrated Report 2020

Business Strategy

Construction Materials Division
Value Creation Model

Polycarbonate Daylighting Materials
System for Providing Added Value

Input

Value Chain

Manufacturing Polycarbonate extrusion molding/fabricacapitaltion technology and composite technology
NaturalcapitalProvide naturally lit spaces that contributeto heath as well as safety and comfort bytaking advantage of the characteristics ofpolycarbonate

Supplier

Production(raw materials manufacturer)(Ibogawa Factory)

Major processes that Provide a Competitive Advantage

Competitive Advantages

Product Development
Polycarbonate building material products have various applica-

Market Competition

tions in our society ranging from public facilities, such as highways

Polycarbonate daylighting material products are usedfor various applications ranging from housing and exteriors to roads with each company in the industry competing
to develop products with new functions and develop new
applications. Among these companies, we are the largest
in Japan for polycarbonate-based building material products, which feature shock resistance, and we are focusing
on manufacturing products that take advantage of thematerialʼs characteristics.

and schools, to factories and housing. This is the result of devel-

Competitive Advantages

Revenue Structure and Industry Driving Force

oping these products that offer unique functionality and designs
in addition to the characteristics of polycarbonate, such as naturallight utilization, lightness, high strength, and UV protection. In addition, we will focus on creating spaces with natural lighting thatare safe and comfort, designed with peopleʼs health and mental
well-being in mind, and developing products that contribute to a
low-carbon society.

We offer a wide variety of products such as corrugatedsheets, flat plates, folded plates, etc. that make the bestuse of each feature of polycarbonate plastic, PVC, and fiber-reinforced plastic (FRP). In addition, Lume Carbo large
polycarbonate plastic double-layer panels, which are lightweight, provide a high level of heat insulation, and offer
high rigidity. Therefore, in consideration of design andworkability, it is possible to use this product for large building structures that utilize natural lighting. While making thebest use of the characteristics of materials, the formationof technologies, including various compounding technologies/optical control technologies, fabrication technologies,
and technologies for combining various different materials,
serve as the basis of our competitive advantage.
In terms of production, in fiscal 2019, the Groupʼspolycarbonate product manufacturing was consolidated
to the Ibogawa Plant, which is our core polycarbonate
manufacturing plant, strengthening processing functions
and providing an integrated manufacturing system fromsheet manufacturing to processing (cutting, folding, andvacuum molding). The implementation of this production
system will further enhance our competitive advantage.

We have pursued more value propositions for materials that provide
natural lighting based on our existing corrugated sheets and flat plates.
Moving forward, we will concentrate our management resources on glass substitutes and lead the industry with the goal of developing recycling-oriented materials and providing sustainableproducts with “SDGs” and “ESG” serving as keywords.

30

C.I. TAKIRON Group Integrated Report 2020

Business Strategy

Added Value Provided to Society
We offer the creation of comfortable spaces with natural lighting and support the foundation for creating a
low-carbon society in all areas of energy savings and environmental sustainability.

Business Partners(distributors, design companies, and contractors)

Customers(end users)

Role of C.I. TAKIRON
The increase in global natural disasters and the destruc-Customer/Consumer Needs

tion of the environment threaten peopleʼs healthy andpeaceful lives. We aim to contribute to the safety and

The needs for disaster prevention and mitigation on asecurity of everyone and the conservation of the global

global scale are increasing year by year. Issues of focus in-environment by providing disaster prevention, mitigation,

clude floods caused by large-scale earthquakes, typhoons,and spaces for health maintenance through the utilizationand torrential rainfall (downpour), which have been oc-of the Groupʼs polycarbonate product manufacturing andcurring frequently in recent years, global warming, andprocessing technologies.

health hazards caused by the increase in ultraviolet rayscaused by the depletion of the ozone layer. We will promote the development of safe and secure products thatutilize polycarbonate plastic as a resilient material that
contributes to global environment conservation, disasterprevention, and disaster mitigation.
Furthermore, for the contribution for creating a sustain-

Sustainable Solutions

able society, we will promote research and development

We contributed to the renovation of the main room/gymnasi-

by evolving polymer processing technology and providing

um of this former elementary school, transforming it into a com-

products that are friendly to the global environment asfortable facility for social exchange featuring natural lighting.

priority materiality initiatives of the Group.

Our Lume Wall double-layer panels were used for the window sections. No electrical lighting is required during the day
and Lume Wallʼs high insulation performance provides a com-

Provision of Custom Value

fortable space for people throughout the year.

We provide solutions that utilize the characteristics of polycarbonate to meet a wide variety of customer needs to contribute tomaintaining peopleʼs health, security, and safety.

Double-layer polycarbonate panel installation

31

C.I. TAKIRON Group Integrated Report 2020

Business Strategy

Environmental Materials Division
Based on production, processing, and construction technologies that
produce high-quality products and services, we will contribute to improving agricultural efficiency and functionality of agricultural products
as well as solving mounting social issues such as large-scale disaster response and preparation.

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

Business Description

Results of FY2019 Initiatives (Results and Issues)

The Environmental Materials Division consists of the Agricultural

The overall environmental materials business was affected byMaterials Business, which proposes the optimal environment forbusiness sell-offs and transfer of the business to other segments.

agriculture, and the Infrastructure Material Business, which sup-In the Agricultural Materials Business, overseas sales increased 18%

ports the improvement of the environment for a safe and secureyear-on-year, a record high for the company. However, we struggledsocial infrastructure.

due to the convergence of demand for replacement due to disaster

The Agricultural Materials Business contributes to agricultural devel-

recovery and the reaction after the special demand for tax increas-

opment by developing products that meet market demand focusing

es. In the Infrastructure Material Business, the group companiesʼ

on agricultural covering materials, a segment of the market of which

integrated ability to make proposals progressed in response to thewe have top market share in Japan. The infrastructure material busi-

increase in demand for disaster waste treatment plants due to ty-

ness supports social infrastructure by developing waterproof/imperme-phoon damage, While there was a steady transition in the engineer-able sheets, high-density polyethylene pipes, and other related materi-ing field, there was also a struggle due to public work based delays.

als necessary for disaster countermeasures and renewal work for social

As a result, net sales for the consolidated fiscal year decreased 10.1%

infrastructure redevelopment and increasing infrastructure lifespan.

year-on-year, and operating profit decreased 24.3% year-on-year.

Market Environment

Development of Environmentally Friendly Products

In the agricultural market, we predict that the needs for larger
farms, value added crops, and greater yield and productivity will

Blast Method in which the grinding material is projected onto

increase. In the civil engineering market, we predict the needs forthe painted surface of steel bridges to remove the old paint use athe renewal and maintenance of highways, tunnels, sewage systems

metal-based grinding material as an abrasive, reducing industrial

and other such infrastructure systems to increase. We expect mid-waste and dust to the utmost and making it possible to reuse it.

to-long-term growth of both industries in the markets of developing

Although it has been highly evaluated, we also wanted to develop

nations, such as ASEAN countries.

a curing sheet that can withstand the projection of metal-based

Before Installation

grinding material and offers good workability.

After Installation

To meet this need, we have developed the Eco Clean Blast Sheet, acuring sheet with excellent durability and flexibility. C.I. TAKIRON was presented the Minister of the Environment Award in 2018 for this product.

Long-term Outlook (Environmental Considerations, Global Expansion, etc.)
In the Japanese market, each area of the environmental materials business segment will not only expand but also shift from a“business that manufactures and sells products” to a “business that
integrates system for recycling, renewal, etc.”
In overseas markets, we aim to expand our business by localizing businesses as a result of developing products that meet theField Fabricated Tube-Steam Method(Unit: Millions of Yen)

FY 2018 Results FY 2019 Results

demands of local markets and at the same time aim to break away

Compared to
FY2018Net Sales

61,86755,639△6,228Operating Profit

1,823

1,381

△442

from the commodities business.
In terms of business management, we will challenge our diverse humanresources with opportunities to utilize them, and promote the creation ofan organization where people can grow as well as be highly productive.

32

C.I. TAKIRON Group Integrated Report 2020

Business Strategy
SWOT Analysis of the Divisionʼs Main Businesses● Industry share and brand strength● Production technology capabilities● Sales system and customer support capabilities● Support capabilities from manufacturing and sales tothe processing and construction stages● Expanding demand for infrastructure redevelopment

and renewal work
● Expanding demand for environmental initiatives andlonger product lifespans● Labor-savings needs resulting from human resource
shortages● Expanding demand in developing nations

Strength

Weakness

S W
O T
ThreatOpportunity● Group-based new product development system● Lacking in ability to adjust to supply and demandwhen there is a production surplus● System for collaboration with external cooperative

enterprises● Polarization of elderly and young employees● Decrease in domestic demand in existing businesses● Plastic material recycling issue● Sudden rises in construction and management costs

due to lack of human resources● Quality improvements by overseas manufacturers

Overview of Main Businesses
Agricultural Materials Business

Infrastructure Material BusinessWe provide complete support for farming business by providing
agricultural covering materials, a segment of the market of which
we have top share in Japan, various agricultural materials that meetmarket needs, and contribute to the revitalization of agriculture.

We have earned trust as a “water specialist” that provide not
only water-proofing, water-stopping, water-draining and pipe restoration materials that support safety and social infrastructure aswell as other civil engineering-related materials, but also construction management service for water-proofing work.

Market Conditions

Although fewer and fewer people are willing to bear the agricultural responsibility as the Japanese population decreases and thenumber of farmlands left abandoned is increasing, the size of farms
is increasing due to regions and companies that adapt to environmental changes, and the number of companies entering the agriculturalindustry is increasing. The agricultural market desires value-added
crops, increased yields, and improved productivity.

Market Conditions

Steady demand for reconstruction due to earthquakes, otherdisaster recovery works, transportation infrastructure redevelopment, and measures for dealing with the current aging infrastructure underlines the market. It is expected to increase in demand
specifically due to the construction of waste disposal treatment
plants and the Linear-Chuo-Shinkansen (Maglev railway) as well as
highway and sewer tunnel renewal works.

Business Conditions

The agricultural business has built a production and sales systemthroughout the entire Group up until now which has contributed
to the evolution of agriculture in Japan with the expansion of new
products that respond to market needs. Furthermore, we will continue pursuing the development of high-performance, high-quality
products and provision of services that are right for modern times.

Business Conditions

Future Priority Measures

Future Priority Measures

We are moving forward with strengthening cooperation with affiliated group companies in order to strengthen capacity in each processof development, production, sales, and construction as well as enhance the ability to provide solutions throughout the entire process inorder to respond to social needs and expand demand in the market.

We will strengthen sales of high-quality products, facility horticulture for greenhouses and facilities, and smart agriculture with the aimof increasing the market share of agricultural covering materials andexpanding the business domain by further strengthening cooperation
with group companies and evolving sales capabilities. In addition, we
will continue to penetrate and expand the market for agricultural covering materials backed by Japanese quality in East Asia and ASEAN
regions.

We will strengthen our business in the areas of disaster prevention/mitigation, pollution control, Linear-Chuo-Shinkansen related
solutions, and social infrastructure renewal. In particular, preparation and recovery efforts for natural disasters caused by climatechange in recent years are an urgent social issue. Therefore, wewill focus on business areas such as river reinforcement and raising
work, underground-based river work, and construction of waste
treatment plants generated by disasters.

33

C.I. TAKIRON Group Integrated Report 2020

Business Strategy

Environmental Materials Division
Value Creation Model

Infrastructure Material Business
System for Providing Added Value

Input

Value Chain

Manufacturing Six production sites in Japan
capital(Group total)

Tochigi Plant

Business Strengths

Manufacturing, processing, and construc-● Industry share

Intellectual tion technologies for a wide array of prodcapitalSocialcapital● Brand strength

uct lines allowing for Group collaboration● Production technology

Customer recognition (brand strength) basedon trust due to acquiring top share of thewaterproof membrane sheet market in Japan● Construction● Customer support

management（Supplier

Including raw materialand secondary material
manufacturers）

DAIPLA CORPORATION
Tsuchiura Plant
Ako Plant
Yokkaichi Plant
Eniwa Plant

DAILITE CO., LTD.
Ryugasaki Plant

Major processes that Provide a Competitive Advantage
In social infrastructure development, it is necessary to place theCompetitive Advantages

safety of the environment of the local community first, not only
direct customers, but also the people who perform the construc-Market Competition

tion and all the people who benefit from the social infrastructure.
For this, we are constantly reviewing the value chain to realize

In the domestic market, there is fierce competition
among companies that deal with civil engineering relatedmaterials for reconstruction from earthquakes, restoration
and redevelopment after typhoons and floods, and renewal work for the aging social infrastructure.

our business model from planning and development to construction and after-sales service to produce high-quality products.

Revenue Structure and Industry Driving ForceIn the Japanese civil engineering market, we expect demandCompetitive Advantages

to increase in the areas of disaster recovery/prevention, pollution

We supply infrastructure materials for water blocking
and water flow (waterproof sheets, plastic nets, waterproofing panels, materials that prevent water-based swelling, large plastic pipes, and materials for pipe restoration)that are indispensable for decontamination-related interim storage facility construction, public and private disposalsite construction, and renewal work for aging sewers, withthe comprehensive strength of the Group. Furthermore,
the foundation of our competitive advantage is that weare the only corporate group that offers across-the-board
proposals for these materials and can perform everythingfrom planning, development, design, manufacturing, andsales to processing and construction.

control, Chuo Shinkansen related solutions, and social infrastructure renewal. In this sector, we will support solving social issues by
providing solutions that combine our construction, quality assurance, and other aspects in addition to product proposals, and will
increase profitability by developing highly productive businesses.

Initiatives for Competitive Advantages
In order to strengthen our response to business areas
where demand is expected to increase further in the future, such as disaster prevention measures and social
infrastructure renewal, we reviewed the mission and positioning within the group, improved the planning anddevelopment speed of the group as a whole, and evolved
our business model from processing and constructed to
manufacturing and sales to accelerate our transformation
into an entity that can provide solutions to more customers, strengthening our base for competitive advantages.

34

C.I. TAKIRON Group Integrated Report 2020

Business Strategy

Added Value Provided to SocietyHigh stiffness resistant polyethylene pipe

Business Partners

includes general contractors, stores,（ and construction businesses ）Helping to Make People’s Lives Saferand More Secure

Local Stakeholders

response to social needs（ forsafety and security ）Preparations to make peopleʼs lives safer and more secure are once again the focus of attention as a result ofclimate change that has been occurring in recent years
and the aging social infrastructure. The various civil engi-

Social Needs Addressed by the Company

neering materials and services provided by this businessgroup contribute to the creation of local communities
where people can live in peace and comfort by improving

Among diversifying social needs, those that the infra-

the safety of the social infrastructure.

structure material business will be requested to address inthe future is the creation of a healthy and prosperous land,
living convenience improvement, disaster prevention/mit-

Sustainable Solutions

igation, regeneration/ strengthening of the social infra-

The number of existing sewer pipes which have surpassed
their legal service life of 50 years has grown rapidly, and there
is growing concern about the destruction of pipes due to corrosion inside the sewer pipes and the resulting collapse of roads.
One of the solutions by our business group is the pipe renewal
method to revive aged sewer pipes, a method of remodeling theinside of sewer pipes using strong materials without having to dig
through roads. The rehabilitated pipe features excellent chemical
resistance, wear resistance, and durability. These attributes makeit extremely strong, contributing to a longer pipe lifespan.
Furthermore, the amount of work performed in minimized
and the construction people is shorter compared to replacing
the pipe itself. This reduces the impact on the living environment of the local community and significantly reduces the cost,
making it easier to maintain/improve sewer pipes. As a result,
this method has been widely adopted, used for applications
ranging from small diameter sewer pipes in small cities to large
sewer pipes in large cities, contributing to comfortable living in
local communities and sustainable sewer projects.

structure, and coexistence of society and the environment.

Provision of Custom Value
We will contribute to the realization of the universal values thatare a comfortable environment, resilience, security and safety, andthe development of a sustainable social infrastructure for all stakeholders who enjoy the benefits of the social infrastructure.

Construction examples using the pipe renewal method35

C.I. TAKIRON Group Integrated Report 2020

Business Strategy

High Functional Materials Division
We will contribute to the development of the coming IoT society by providing products offering more value by making full use of our polymer
formulation and processing technology.

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

Business Description

Results of FY2019 Initiatives (Results and Issues)

The High Functional Materials Business Division is made up of

In the High Functional Materials Business segment, its mainstay

our plate business that mainly manufacturers and sells universal

product of industrial plates and related products were impacted byresins such as PVC, PC, and PET as well as magnetic materials, oura decline in capital investments for semiconductors and US-China

micro motor business, and affiliate companies that handle ultra

trade friction. Conditions remained difficult through to the third

fine particles, engineering plastics, and acetate. Distinct products

quarter to bring net sales to 17,267 million yen (down 8.8%) andare expanding worldwide as a result of responding to the highoperating profit to 1,313 million yen (down 29.9%). On the pro-quality requirements of customers throughout our long history by

duction side, however, in order to meet the high level of demandadding various types of functionality in addition to improving basicfor PVC materials for semiconductor manufacturing equipment,functionality. We provide products in a wide range of fields, fromwhich is expected in the future, we have promoted the establish-

those that support the industrial infrastructure, including semicon-

ment of a system that can promptly shift to increased production.

ductors, LCD/organic EL panel manufacturing equipment, to those

Also, we have decided to invest in increasing the production ofthat enrich our lives, such as cameras and eyeglasses.

filter plates and engineering plastic materials. Challenges we arefacing are the promotion of new product development in the ul-Market Environment

trafine particle processing and motor businesses, and to enter newmarkets early.

With the start of full-scale operation of 5G (next-generation
communication standard) networks and the promotion of tele-

Development of Environmentally Friendly Products

work as a countermeasure against the new corona virus, demandis expected to further increase in the fields of semiconductors andAs an initiative to realize a sustainable society, we have worked

FPDs, which are the main fields of focus this division for future

on product development focusing on the utilization of renewablebusiness. Such demand includes demand for smartphone replace-resources derived from biomass and recycled materials. In partic-

ment and data center capacity expansion. In addition, the motorular, we are developing products that focus on the functions ofmarket, which calls for miniaturization and energy savings, will also

biopolycarbonate and cellulosic materials as well as products that

expand.

add new value by using unique formulation technology for recycled materials. We plan to bring these products to market at an
early stage.

Long-term Outlook(Environmental Considerations, Global Expansion, etc.)
Our plate business will continue to grow indefinitely while providing customer satisfaction and earning stable profits. The motor
business will develop dramatically with the aim of achieving highprofits with a visionary strategy, making thorough efforts to improve functionality and product differentiation. We will promote(Unit: Millions of Yen)FY2018 Results

FY2019 Results

Compared to
FY2018Net Sales

18,935

17,267△1,668Operating Profit

1,874

1,313

△561

overseas expansion and develop business together with our customers in all areas of the world.

36

C.I. TAKIRON Group Integrated Report 2020

Business Strategy
SWOT Analysis of the Divisionʼs Main Businesses● Abundant product lineup● High market share, brand strength● Abundance of sales channels● Detailed technical support● Growing demand for semiconductor manufacturing

equipment worldwide● More focus on energy savings (making products
lighter, resinification)● Increasing sales opportunities due to customer overseas expansion

Strength

Weakness

S W
O T● Production efficiency improvement limited due toabundant product lineup● High dependent on the semiconductor and FPD

industries● Rapid fluctuations in demand trends for semiconduc-

tor and FPD manufacturing equipment● Changes in various standards and regulations

ThreatOpportunity

Overview of Main Businesses
Plate Business

Motor Business

By providing plate products made of PVC, PET, and PC resin

In the motor business, we provide on a global level coreless mo-materials as intermediate materials, our plates are used in a wide

tors that can be miniaturized, save power, and make use of ourrange of industrial fields around the world.

unique technology with excellent responsiveness which are used inMarket Conditions

products in a wide range of fields.

Demand in our mainstay semiconductor manufacturing equip-

Market Conditions

ment field has been sluggish for several years due to the decline inSince our motors are used in a wide range of fields, including

memory demand. However, the market is expected to expand at

the medical, camera, hobby product, and industrial fields, market

an accelerated rate in the future due to the spread of 5G, IoT, andwhere the advantages of coreless motors can be utilized are ex-other technologies.

pected to continue to grow steadily.

Business Conditions

Business Conditions

As demand for semiconductors and FPDs was sluggish, we fo-

Although competition became fierce with the market expansion,

cused on new areas, such as expanding sales of laser shielding

we received praise from customers for our high product quality,

plates. Although we achieved certain results and worked to im-and demand increased due to responding to customer needs in a

prove production capacity in preparation for increased demand,detailed manner and ability to work quickly. As a result, we wereoverall we were unable to achieve sufficient results.

able to establish a system for increasing production and create a

Future Priority Measuressolid track record.

We will maintain and develop a solid supply chain, improve pro-

Future Priority Measuresduction capacity, pursue high quality, and accelerate expansion into

In order to further respond to the needs of the market, we will

new business fields so that we can always meet customer needs.

expand our lineup of products that offer improved functionality, such as gear motors and motors with encoders, and work tostrengthen sales.

Semiconductor Wafer Processing Device (product illustration)

37

C.I. TAKIRON Group Integrated Report 2020

Business Strategy

High Functional Materials Division
Value Creation ModelF M/Static Dissipative Plates for Semiconductor
and FPD Manufacturing Equipment
System for Providing Added Value

Input

Value Chain

Manufacturing Extractors, presses, continuous presses,
capitaland various manufacturing methods
FM/Static dissipative Plate
ManufacturingIntellectual PVC compounding technology cultivatedcapitalover many years
HumancapitalExperienced operators with high-levelskills that give meaning to the phrase“Made in Japan”

SocialcapitalTrusting relationships with customers thathave resulted from our advanced technology and reliable quality

Material Manufacturers

C.I. TAKIRON
Aboshi Plant

Major processes that Provide a Competitive Advantage
We are always innovating our PVC formulation technology that

Competitive Advantages

we have formed over 60 years by adding new knowledge to it.
Taking advantage of our top market share position, we are quick

Market Competition

to catch market demands, and our sales, development, and man-

Although there are many competing manufacturers inufacturing sections are united to continue to introduce products

Japan and overseas, from small- to medium-sized busi-

that are ahead of the competition. Also, operators backed by solid

nesses to large companies, the number of companies

experience make full use of various manufacturing equipment tocapable of supplying products to businesses in the semi-deliver reliable Japanese quality to the whole world.

conductor/FPD manufacturing equipment field, a segment

Revenue Structure and Industry Driving Forcewhich requires products of high quality, is limited. We aretrying to differentiate ourselves from the competition

In the semiconductor/FPD manufacturing equipment market,

through comprehensive product development using FM/

which is expected to expand further in the future, products that

Static dissipative plates for semiconductor manufacturing

are important for maintaining superiority and securing profits areequipment.

products that are flame-retardant and FM standard compliant, andstatic dissipative plates that suppress the generation of static elec-

Competitive Advantages

tricity and prevent static from generating inside clean room equip-

We offer high quality based on our technology culti-

ment. Both products are indispensable in the semiconductor/FPD

vated over many years in the industry, and an abundant

manufacturing processes. By surpassing the competition in terms

product lineup and high level of brand strength that canof quality and product lineup, these products serve as the pillars

be realized only by grasping customer needs and continu-

of our profits.

ing to meet their demands. In addition, we have a strong
global sales network based on long, trustful relationships.
We believe that these strengths together serve as thestrength of this business.

Initiatives for Competitive Advantages
This division is improving the functions of products inorder to further evolve the semiconductor manufacturing
process and improve the safety of the equipment environment from the perspective of flame-retardant materials.
We are also developing new products in order to pioneer
the performance required for next-generation processes.

38

C.I. TAKIRON Group Integrated Report 2020

Business Strategy

Added Value Provided to Society
Each product is processed by a PVC plate (FM/Static dissipative) processing businesses (customer) into a shapethat meets the userʼs request and are then used as semiconductor manufacturing equipment parts.

* PVC plates become semiconductor manufacturing equipment parts and a partof housings as a result of cutting, bending, welding, and other processing tasks.

Customers(PVC plate processing
businesses)*

Semiconductor Manufacturing Equipment
Manufacturers

Contributing to Making Life More
Convenient in Ways Unseen

Semiconductor Factories of End Users

We contribute to making life more convenient in ways
unseen by providing materials with flame retardancy andanti-static properties for semiconductors, which serve as
the foundation of all industries, and manufacturing equip-

Customer/Consumer Needs

ment that supports the high quality of liquid crystal andorganic EL displays that enrich peopleʼs lives.

In the semiconductor/FPD manufacturing processes,
quality control for improving yield and productivity is themost important matter. High-level quality is required for
directly related manufacturing equipment. For FM/Static
dissipative plates used in manufacturing equipment, we

Sustainable Solutions

always aim to steadily provide high quality to meet demand.

PVC plate, our main product, is made up of chlorine (Cl),which is derived from the abundant natural resource salt (NaCl)
which makes up about 57% of its composition. This is unlike
many other plastics that use 100% petroleum resources, con-

Provision of Custom Value

tributing greatly to the savings of limited resources.

In order to provide a stable supply of high-quality products thatmeet customer needs, we thoroughly analyze past complaint information to establish what needs to be improved as well as actions
to be implemented in all processes of production, distribution, andsales for increasing customer satisfaction. While continuing to develop products that meet customer demands, we will discover new
customer needs and take the next step to provide new value.

39

C.I. TAKIRON Group Integrated Report 2020

Business Strategy

Specialty Films DivisionThis division will continue to promote the concept of “enriching peopleʼs lives and making them more convenient” through specialty film
applications. We will continue to provide peace of mind to peopleʼs lives
through specialty film applications that people can experience directly
through touch.

Hidehiro Shima
Executive Officer,
Chief Operating Officer of the Specialty Films Div.

Business Description(Unit: Millions of Yen)FY2018 Results

FY2019 Results

Compared to
FY2018Net Sales

20,824

19,684△1,140Operating Profit

1,969

1,155

△814

The Specialty Films Division has two business pillars: BONSET and
SANZIP Businesses.
BONSET is a brand of shrinkable films (heat shrinkable films) firstcreated in Japan used for labels, cap seals, molded products, andResults of FY2019 Initiatives (Results and Issues)other various purposes using three types of materials. SANZIP is abrand of re-closable plastic zipper tapes which are used in various

BONSET business sales saw a year-on-year fall due to label revi-fields, including the food business.

sions under FDA regulations in the North America. This year, weWith Okayama Plant in Japan serving as the mother plant, we

will add environmentally friendly products suitable for recycling to

are working to maximize the production efficiency of each baseour new product lineup for sales recovery.

while strengthening technical cooperation with BONSET AMERICA

As for SANZIP Business, although zipper sales in Japan drove

and BONSET LATIN AMERICA. We are also promoting the construc-business performance, expansion of sales to North America hastion of a global optimal production and sales system at four bases

experienced a significant pullback due to the effects of trade fric-around the world, including the Hiratsuka Plant (SANZIP business)tion between the United States and China, prompting a strategy

and SHANGHAI SANPLUS PLASTIC. Promoting both BONSET andreview. We are proud to say that we received the Gold Award at

SANZIP as the de facto standards, we utilize the strengths of lo-

Dowʼs 2019 Packaging Innovation Awards for our Sensory Zipper

cal production, realize the advantages of high quality, promptthat consumers can “hear and feel.” In addition, our VDS (Verti-

after-sales service, and realize short lead times aiming for further

cal Drum Stand), which was developed as a solution for reducing

business expansion.

entanglement when using zippers and able to run the drum spun
zipper continuously for long hours, has been well received and isMarket Environment

expected to be used in the future as a tool for expanding zipper

The global shrink film market is expanding with a growth rate of 3%

sales. In March 2019, SHANGHAI SANPLUS PLASTIC, our manu-

to 4%. We expect that worldwide demand will shift and expand to

facturing base in Shanghai, acquired the long-sought FSSC 22000

focus on PET materials in the future from perspective of environmental

certification. This has provided us with a great advantage in deliv-

consideration. In order to conform to this shift, we are investing inering zippers to European food manufacturers.

equipment to enhance our PET film production capacity and plan on

Development of Environmentally Friendly Products

starting the production of environment-friendly PET films through ourown proprietary manufacturing process as well as their sale.

BONSETSANZIP(1)

Biomass films

Biomass zippers(2)

Low-density films

Biodegradable zippers(3)

Thin films

Mono-material zippers

Zipper tapes are also expected to see annual market growth of
5% to 6% primarily in Asia, including Japan, North America, andEurope. Due to the nature of products for pharmaceutical andfood applications, domestic customers demand strict quality requirements, safety, and proper bag production (providing low-tem-Long-term Outlook (Environmental Considerations, Global Expansion, etc.)

perature sealing performance, multi-sealing properties, etc.). Thereis a demand for highly designed products, such as child resistant

We will not only address the requirements to protect the global

products that cannot be easily opened, and environment-friendly

environment, but will also focus on next-generation product devel-

products such as mono-material and biodegradable products. We

opment that aims to realize a sustainable society in harmony withwill further promote a production system that can meet these var-

the environment utilizing our four global production bases locatedious demands at both our Japan and Shanghai production bases.

in Japan, China, North America, and South America.

40

C.I. TAKIRON Group Integrated Report 2020

Business Strategy
SWOT Analysis of the Divisionʼs Main Businesses● Capable of manufacturing a variety of products ac-

cording to application with our unique compounding
technology● We possess production bases in Japan (Hiratsuka andOkayama) and overseas (China, US, and Uruguay),
creating globally optimized production and sales● Lineup of biodegradable, mono-material, biomass andother eco-friendly products● Demand and application expansion both in Japan andoverseas (food, chemical supplies, pharmaceuticals,etc.)● Since quality requirements are strict in Japan, it isdifficult for low-priced products from overseas to enter
the domestic market

Strength

Weakness

S W
O T● Few new product launches● Brand value has not permeated the markets in devel-

oping nations● There is no manufacturing base in the United States,

which is the largest market for SANZIP products● Material shift due to environmental problems● Friction between the US and China and risks fromdoing business with China● Cheap competition in overseas markets

ThreatOpportunity

Overview of Main Businesses
BONSET Business

SANZIP Business

Market Conditions

Market Conditions

BONSET products are primarily sold in Japan, North, Central, andZipper demand in Japan is expected to continue to grow bySouth America, Europe, and Oceania. The market for its products isabout 5% annually due to diversification of tastes, smaller bags,

growing at an annual rate of 3-4% along with population growth.

and expansion of the base of products used.

On the supply side, however, no large-scale expansion has been

We are expanding our overseas business mainly in Asia, Europe,

seen and it is expected that the balance of supply and demand will

and North and South America. In Europe and North America, since

become tighter in the future. In regard to environmental measures,

there is a particularly strong awareness of environmental issues,

brand owners are playing a central role in Europe and the United

there is an increasing demand for environmentally friendly zippers.

States.

Business Conditions
In Japan, there are many customers who have strict demands

Business Conditions
Global demand for shrink film in fiscal 2019 is approximately

for quality, and sincerely responding to those demands leads to

400,000 tons. Although our share of that is one of the largest in

business expansion. On the other hand, although the world zip-

the world, it is still only 10% of the market. Therefore, in addition

per usage in fiscal 2019 is about 65,000 tons, our market share isto the North American base that was expanded from this year, as

only 5.5%. This is largely due to the delay in capturing the Norththe second step of our growth strategy, we will further increase

and Central America markets which account for 67% of global

our share on a global basis and aim to acquire top market share in

demand.

the global market.

Future Priority Measures

Future Priority Measures● Increase production capacity at the Hiratsuka Plant to meet in-● Improvement of productivity through aggressive capital investment

creasing demand● Acceleration of the manufacture and sales of environment-friend-● Review of sales strategy for North America

ly products● Expansionof environment-friendly zipper sales (development

and relevant certification acquisition in each country)● Development of zippers with high designability (child resistant,

etc.)

41

C.I. TAKIRON Group Integrated Report 2020

Business Strategy

Specialty Films Division
Value Creation Model

BONSET Business/SANZIP Business
System for Providing Added Value

Input

Value Chain

Manufacture of C.I. TAKIRONGroup Products

Polymer processing technology and solu-

Intellectual tion know-how acquired through decades
capitalof business experience

Okayama Plant(BONSET business)

Respond to BCP (Business Continuity Plan)
Manufacturing needs by setting up bases in Japan andcapitaloverseas

Materials Manufacturers

Hiratsuka Plant (SANZIP business)

Major processes that Provide a Competitive Advantage

Competitive Advantages

BONSET BusinessWe are strengthening technical cooperation for BONSET, a busi-

Market Competition

ness initially established in Japan, at three global bases (Okayama

Through our BONSET business, we propose shrink films

Plant in Japan serving as the mother plant, BONSET AMERICA (US),that meet customer needs using three types of materials.

and BONSET LATIN AMERICA (Uruguay)) and promote a produc-

In our SANZIP business, we fiercely compete with com-tion and sales system convenient for global consumers.

petitors in business scenes that meet the diverse needs of

SANZIP Businesscustomers in various fields, including the processed foods

We are expanding our sales channels to dozens of countries

business.

around the world, including countries in Asia, Europe, and the
Middle East. Also, in response to the recent growth of the global

Competitive Advantages

market, we are proceeding with efforts to increase production.

BONSET Business

Revenue Structure and Industry Driving Force

The advanced technical capabilities and know-how that

BONSET Businessenable optimal film quality design according to usage
scenario are highly evaluated by brand owners around

Expanding market share will drive profit growth. The global mar-the world. In addition, since shrink film use as well as its

ket for shrink films is expected to continue to grow by 3-4% annu-

market are expanding worldwide, we are expanding ourally. We will aim to capture top market share of the global market

production facilities in response to that expansion.

by further accelerating production and sales in optimal locations

SANZIP Business

utilizing our three global bases.

SANZIP Business

Utilizing our unique resin composite technology thatcombines materials and advanced molding processing

Product development/globalization will drive profit growth.

technology, we also offer hybrid types that support all

SANZIP Tape is used in various product packages in response to thetypes of polyolefin seals to meet the diverse needs of ourdiverse “reopening and closing needs” of customers. We are also

customers. In addition, we offer a large selection of SAN-

continuing to develop the market for overseas sales expansion.

ZIP tape products for different shapes and applications,and promptly respond to customer requests in detail andby manufacturing molds in-house.

42

C.I. TAKIRON Group Integrated Report 2020

Business Strategy

Added Value Provided to Society
We supply products to customers suchas print processing product manufacturers and food manufacturers which
are then provided to end consumers.
Utilizing intellectual capital and manufacturing capital, we will expand
horizontally from food to the medical
electronics field and further to theglobal chain.

BONSET AMERICA CORPORATION(BONSET business)

SHANGHAI SANPLUS PLASTIC(SANZIP business)

Print Processing Product
Manufacturers
Food Product Manufacturers, etc.

Consumers

Contributing to the Earth’s
Environment Through the Proliferationof Environment-friendly Products

Customer/Consumer Needs

We are also approaching the requirements for environ-

BONSET Business

ment-friendly plastic products from various directions, in-Customers are demanding design quality that considers

cluding biodegradable, biomass, and recyclable products,

various uses/product contents, including use as labels, cap

as well as mono-materials. All of these efforts are in theseals, and molded products. There is also a demand for

initial stage of technical development. Although we areproducts that meet the demands for global environmental

just taking the initial steps, we are establishing products

protection.

that can meet the needs of our customers and developing

SANZIP Businessthe market.

Customers are increasingly adopting use of zipper for
packaging that did not utilize zippers in the past, whether
for food or non-food product packaging. There is also a

Sustainable Solutions

demand for the use of environment-friendly materials.

Providing Solutions for the Environmental Impact
Among our 3R solutions (recycle, reuse, and reduce), we areproceeding with product development with a particular focus
on recycling (recycled resin) and reduction (reducing material

Provision of Custom Value

thickness). For development, will continue to invest the man-

BONSET Businessagement resources of people, goods, and money to eventually

Taking advantage of local production, we aim to further increase

realize solutions.

orders by realizing short lead time in addition to the advantages ofhigh quality and quick after-sales service. Furthermore, we will also
focus on next-generation product development that aims to realize
a sustainable society.

SANZIP BusinessWe will broadly look beyond existing fields and focus on expanding into markets that are expanding due to diversificationof applications. In addition, we will actively develop and propose
products that meet the demands of the times, such as the use ofenvironment-friendly materials.

Zipper Tapes

43

C.I. TAKIRON Group Integrated Report 2020

Foundation of Value Creation

Technology,
Research &Development

Creation of New Business and Developmentof New Products Bearing the Future
Research and development activities at C.I. TAKIRON play a vital role in achieving new value
creation for the future. In addition to solving the problems faced by each business division,
we also grasp environmental and social issues and market needs with our own technology
serving as the core and create high value-added products or new businesses by utilizing internal or external technologies. We make contributions with our polymer technology to create
a future that is people and the earth friendly.

Akihiko Shiraishi

Executive Officer and in Charge of the R&D Department

R&D philosophy

Competitive Advantages (Strengths)(1) C.I. TAKIRON has been expanding its corporate scale and busi-≪.6)VRI7HFKQLFDO'HYHORSPHQW≫

1HZ6HFWRUV([LVWLQJ6HFWRUV 'HVLJQRI&RPSRVLWH   /RQJILODPHQW3URGXFWV$XWRPRELOHV&RQVWUXFWLRQ0DWHULDOV ▣'HYHORSPHQWXVLQJFDUERQDQGJODVVILEHUVHWF

ness domains as a comprehensive polymer processing manufac-

 'HVLJQRIVSHFLDOW\ILOPV   DQGVKHHWV

ture since the management integration in April 2017. The syn- ▣'HYHORSPHQWEDVHGRQWKHPXOWLOD\HULQJRI   FRUHWHFKQRORJLHVDVZHOODVH[WHQVLRQUROOLQJ   DQGEULGJH UHVLQPRGLILFDWLRQ WHFKQRORJLHVHWFergistic effect will drive us even in research and development.

3ODQW)DFWRULHV,QGXVWULDO)LOPV 'HVLJQRIFRPSRVLWH   QDQRPDWHULDOSURGXFWV

(2) C.I. TAKIRON utilizes advanced mix design technology, equip-+HDOWKFDUH

2SHQ,QQRYDWLRQ

cate products from films with a thickness of several microns to

6SHFLDOW\)LOPV

ness regions through unique and superior material development, film>&RUH
7HFKQRORJLHV@
0DWHULDO&RPSRXQGV)DEULFDWLRQ(YDOXDWLRQ7HFKQRORJ\HWF(QYLURQPHQ
WDO0DWHULDOV+LJK)XQFWLRQDO
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and sheet development with high added value and functionality, tech-&RQFXUUHQW5 '

plates with thicknesses of several dozen centimeters.

,R7≪.6)VRI0DUNHW&KDQJHV≫&RQVWUXFWLRQ0DWHULDOV

(3) C.I. TAKIRON holds the top share of products in a wide range of busi-+LJK)XQFWLRQDO
0DWHULDOV
6SHFLDOW\)LOPV ▣'HYHORSPHQWXVLQJ&1)DQG1DQR7HNQDQR   VL]HGXOWUDILQHSDUWLFOHPDWHULDOV

ment design technology, and fabrication technology to fabri-(QYLURQPHQWDO
0DWHULDOV/HDGLQJ&RPSDQ\RI
WKH3RO\PHU
3URFHVVLQJ,QGXVWU\ $JLQJVRFLHW\DQGGHFOLQLQJELUWKUDWHGHFUHDVLQJ   ZRUNLQJSRSXODWLRQ 6PDUWVRFLHW\DQGFUHDWLRQRILQWHOOLJHQWKRXVLQJ   PDWHULDOV 3UHYDOHQFHRIHOHFWULFYHKLFOHVVHOIGULYLQJ   YHKLFOHVGURQHVDQGFRQVWUXFWLRQPDFKLQHV (YROXWLRQRIOLYLQJVSDFHVDQGPDQGDWRU\   FRPSOLDQFHWRHQHUJ\VDYLQJVWDQGDUGV +DQGOHPDULQHSODVWLFSROOXWLRQ

nological development for geometric designs, and the developmentof installation technology and new processing methods.

R&D System(4) C.I. TAKIRON possesses the high-precision analysis devices andanalysis capabilities indispensable for development.

Our research and development activities aim to promote the cultivation of budding new businesses as new growth engines and build
businesses as new pillars of income through cooperation across de-Important Strategies and Progress

partments in addition to the independent activities of the researchand development as well as product development departments.

C.I. TAKIRON takes full advantage of open innovation and concurrent research and development based on the “for tomorrow”

Furthermore, project activities that link production and sales

keywords in the Good Chemistry Good Growth 2020 Key Successdepartments as well as partnerships with affiliate companies pro-

Factor (KSF) in the medium-term management plan to not only

mote the development of attractive products that respond to theforge new regions but also expand existing regions according toneeds of customers. These collaborative efforts also work in envi-

short-term development themes.

ronment-friendly technical and product development based on the

As the KSFs of market change, we have outlined measures thatenvironmental preservation activities to address new social issues

include the standardization of AI and robots as measures to address

such as the marine pollution caused by microplastics.

an aging society with a declining birthrate as well as a decrease in
the working population, the use of IoT to facilitate a smart society,

Group-Wide New Product Review Meetings

the creation of lighter and more functional interior materials to help

The R&D Department and the product development departments

innovate electric vehicles, as well as housing that offers both econom-of each business division are working together to revitalize the devel-

ic and environmental benefits to evolve living spaces. As the KSFs of

opment of new products throughout the entire C.I. TAKIRON Group.

technical development, we are furthering medium- to long-term de-

In order to materialize the new products that will be responsible forvelopment themes around our three core technologies for the design

tomorrow, we play a role in efforts for future corporate developmentof composite long-filament products, the design of specialty films andand growth as well as promoting those efforts and in the construction

sheets, and the design of composite nanomaterial products.

of a system for managing and promoting the development system.

44

C.I. TAKIRON Group Integrated Report 2020

Foundation of Value Creation

New Product Topics

Convening New Product and Technology Presentations
New Product and Technology Presentations primarily ask junior

Packing Film Development

engineers to present the technical themes that they have been working on at a venue to introduce and evaluate new products and tech-

Packing film is an olefin-based film that offers excellent elasticity for

nology throughout the entire company once a year. These presenta-stabilizing products as a substitute for cushioning materials used astions accelerate research and development by encouraging technicalhome delivery packing materials. It is used by adhering it to cardboard.

and information exchanges shared within Group companies.

This form of packing contributes to the reduction of polymer
waste since the total amount of cushioning material can be reduced
compared to that used conventionally. The film also offers excellent
workability during packing. In addition, it is used for transporting
gifts such as pottery and beauty products such as cosmetics becauseof its high-class design, which makes it possible to do things such as
checking contents immediately after opening packages.
We are currently selling packing film to customers on a trial
basis. The product has been well

2019 New Product and Technology Presentations Award Ceremonyreceived for its transparency,
ability to fit to products, etc.

Core Technology

Offers excellent transparency and elasticity

C.I. TAKIRON hopes to provide specialty products with advanced
commoditization. In other words, we will offer attractive products
beyond conventional quality standards in addition to providing
value from the customer perspective with the aim of becoming
the leading company in polymer processing. Therefore, we mustpursue the potential of materials in a research effort that ties tothe development of a wide range of film, sheet, and panel prod-

Packing material that has a neat appearance and is visually appealing

ucts that offer distinct features and characteristics. C.I. TAKIRON

Development of Substrate Material Film for Dicing Tape

also strives in research to explore and combine materials as well as
integrate fabrication and peripheral technologies to improve add-

Utilizing our specialty film molding technology, which is the coreed value. In addition, we also work to analyze and evaluate thetechnology C.I. TAKIRON, we are developing a substrate materialmaterials and elements molded in this research while enhancing

film for dicing tape used in semiconductor fabrication.
In the future, we will continue to promote sales by aiming forthe base technologies of the C.I. TAKIRON Group to help increase

even higher levels of functionality.

the quality of products.

Dicing tape: Adhesive tape used for mounting semiconductor wafers and package substrates to frames in the semiconductor dicing process.

Development of Environment-friendly Products

Development of an Artificial Light Hydroponic Cultivation System

Looking at the 3R+Renewable environmental initiative, we are

As an initiative to achieve the Sustainable Development Goal “zerofocusing on reducing the use of petroleum-derived resources andhunger,” we are developing an artificial light type hydroponic cultiva-

development of recyclable plastics, biomass plastics, and biode-tion system that is capable of growing lettuce stably and in a sanitary

gradable resins.

manner by utilizing the polymer processing technology of C.I. TAKIRON.
Continuing from last year, we will also exhibit this technology at

We are reducing the amount of petroleum-derived resources

exhibitions and carry out PR activities for sales.

used in our plastics by blending natural organic fillers, such as
starch and paper powder, or inorganic fillers, such as limestone andsilica, into the polymer. For recycling, we are trying to create new
products by utilizing used polymer products, so-called post-consumer products (product containers, sanitary materials, etc.). In addition, in order to improve the performance and processing of biodegradable resins and make full use of biomass plastics, we utilize
polymer processing technologies such as composite technologies
and shaping technologies possessed by C.I. TAKIRON.

Nutriculture System

45

C.I. TAKIRON Group Integrated Report 2020

Foundation of Value Creation

Personnel and
Human
Resource

Toward New Work Styles
and Employee Development
As the spread of Covid-19 demands a shift in work styles, we are also working on creating
new work styles (remote work, online meetings, etc.) to further improve the environment inwhich working people can demonstrate their abilities with peace of mind.
This year, we have also been recognized as an excellent corporation for health management. In order to provide a workplace where we can continue to work with peace of mind,
we will continue to work on the practice of the Better Life Management Declaration. Together with establishing the concept of “ideal human resources,” we expect individual growth andwill enhance the education and training to support that growth.

Yukihiro Iwata

Managing Executive Officer,
Chief Operating Officer of the Corporate Administration Division

Better Life Management
Declaration

Ideal Human Resources[Ideal Human Resources]

We provide a quality

Communicate, Commit, Be Proactive

workplace for a better life

Take Initiative and Drive Forward

The ability for each and every employee to live a better life helps

To Grow as a Leading Company

the sustainable growth of our company. While faced with a decreasing working population due to an aging society with a de-In fiscal 2018, the second fiscal year after the management in-clining birthrate, we must build an environment where both thetegration, we embodied the concept of Ideal Human Resources in

employees and company can grow through sufficient display of

the Letʼs Talk More project in which in-depth discussions were held

the capabilities that diverse human resources have to offer in order

between teams divided into each generation from people in theirto heighten corporate competitiveness. As a means to this end, it

20s to people in their 50s.

is necessary for the company to provide a quality workplace that

Our Ideal Human Resources concept strongly calls for awarenessleverages individuality rather than expecting employees to conform

as expressed by “Communicate,” “Commit,” and “Be Proactive.”to a standard role model archetype. On April 1, 2019, we formu-

We are developing human resources who are responsible for theirlated the Better Life Management Declaration in order to share ourwork, who can complete the work without discarding it, and who

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

can increase their own value of existence by completing their work.

measure of management. We advocate support for diverse work
Communicate

styles, support for purposeful work, and support for better healthas vital measures in building a quality workplace, and we are striving to cultivate a new corporate climate. In fiscal 2020, we will

Commitintroduce “health management,” a new element, and strengthen

Be Proactive

Better Life Management Declaration related initiatives in order to

Human resources capable of actively communicating with everyone inside and outside thecompany and conveying their thoughts
Human resources who think for themselves, act
for themselves, and fulfill their responsibilities
Human resources who can anticipate situations
and actively realize new business and innovations

grow the company and increase its corporate value.
［Better Life Management Declaration］
Company Growth/
Corporate Value
Improvement

Our company provides a quality
workplace where employees can work
easily in accordance with the Better Life

Vitalize Organization/
Improve ProductManagement Declaration, and employ-

Better Life/
Employee Growthees contribute to the lasting growth of

Quality
Workplacethe company through realization of the

Support for
Diverse Work Styles［Ideal Human Resources］

Support for
Purposeful Work

Health Management
Initiatives

Ideal Human Resources concept.

46

Take Initiative andDrive Forward

Support for
Better HealthC.I. TAKIRON Group Integrated Report 2020

Foundation of Value Creation

future and their thoughts about their career with their supervisor

Better Life Management
Declaration - Important Measuresand colleagues based on a career vision sheet drafted by theemployee themselves. The job rotation program is a program in

C.I. TAKIRON strives to encourage the formulation and use ofwhich employees move to a different department five years after

programs with these important measures at the core to support ajoining the company with the hope of aiding in their development

better life for our employees. We also conduct employee surveys toby providing a wide range of experience. These frameworks

verify the effectiveness of our efforts.

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

Support for
DiverseWork Styles

Support for
PurposefulWork

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

Realization of a
Workplace Where
Everyone Can Work
Enthusiastically

Realization of a
Workplace Where
People Can Work
Efficiently witha Healthy Body andMind3) Support for Better Health
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 workplace that issound for both the mind and body. This program helps employees
refresh their bodies as well as minds and provides support for ahealthy and energetic work style by ensuring every employee ac-1) Support for Diverse Work Styles

tively takes paid leave. We have set a target for an 80% employee
acquisition rate of paid leave for fiscal 2020 and recommend that

C.I. TAKIRON adopts systems such as an hourly leave system andemployees regularly take paid leave.

a telework system with the goal of realizing a workplace where eachcan employee can select a working style according to their stage of

Furthermore, in order to better the health of our employees,

life. As for measures to prevent the spread of Covid-19, we plan to

we are aiming to cultivate awareness about employee health byextend the scope of the telework system to all employees who can

expanding the items for medical check-ups, disseminating andwork from home to improve the infrastructure as well as make use

recommending specific health guidance, fully subsidizing online

staggered work hours and continue doing so in the future.

smoking cessation programs, and conducting stress checks.

With regard to childcare leave for male employees, the rate

Rate of Paid Leave Taken by Employeesof taking childcare leave in fiscal 2019 increased significantly by
establishing a short-term childcare leave system to make the leaveeasier to take. In fiscal 2020, we have set a target of 75% or above

FY 2018

FY 2019

FY2020 (Target)

62.4%

91.2%

80% or above

Specific Health Guidance Implementation Rateas the acquisition ratio of childcare leave for male employees andare promoting support for diverse work styles.

Acquisition Ratio of Childcare Leave for Employees

FY 2018

FY 2019

FY2020 (Target)

―

40.9%

60% or above

FY 2018

FY 2019

FY2020 (Target)

―

35.2%

30% or lower

Smoking Rate

FY2019(Female)FY2019(Male)FY2020(Target for Male Employees)

Number of Employees Qualified
to Take Childcare Leave During
the Applicable Fiscal Year

7

32

―

Number of Qualified Employeesthat Took the Childcare Leave

7

29

―

recognized as an excellent corporation

100%

90.6%

75% or above

for health management under Health &Acquisition Ratio

In March 2020, C.I. TAKIRON was

Productivity 2020. Striving to become a

Percentage of Employees that Returned to the Company After Taking Childcare Leave
FY2019 (Female)

FY2019 (Male)

100%

100%

Percentage of employees that returned tothe company within the applicable fiscal
year after childcare leave

White 500 company, we are strengthening
our Better Life Management Declaration related initiatives.

Voice of a Male Employee
Taking Childcare Leave
Jun Kamitamari

Retention Rate of Employees that Took Childcare Leave
Number and percentage of employees still at the company 12 months after returning to work in FY2018

Female

Male

6
100%

10
100%

Manufacturing Group, Yasutomi Plant
I was the first to take a short-termchildcare leave in the Manufacturing
Department with heartfelt support frommy colleagues and superiors. I did mybest to support my wife by doing household chores and childraising during the leave to let her rest, but it realized how difficult
raising a child is. I hope I can take part in building an environment
where taking leaves is even more easier for my colleagues.

2) Support for Purposeful Work
C.I. TAKIRON implemented career consulting and job rotation
programs as a framework to support the purposeful work of
its employees. Career counseling provides career development
support through counseling with supervisors. Employees create an
action plan and confirm a growth process after sharing their ideal*Data in this page are all non-consolidated data for C.I. TAKIRON

47

C.I. TAKIRON Group Integrated Report 2020

Foundation of Value Creation

Personnel and
Human Resource
Development

Toward New Work Styles and Employee Development
3) Initiatives to Promote the Active Participation of WomenDiversity & Inclusion

We have formulated an action plan and raise awareness both

We believe that the acceptance of diverse human resources

inside and outside of the company in accordance with The Act

regardless of age, gender or nationality as well as understandingon Promotion of Womenʼs Participation and Advancement in theand respecting a wide range of values and viewpoints vitalizes the

Workplace while building a workplace where everyone can workorganization and helps employees grow.

enthusiastically regardless of their gender.

At first, we provide in-house training so that each employee canbetter understand the concepts of “diversity & inclusion,” respect the

Action Plan to Promote the Active Participation of Women from April 2018 to March 2021

various values and differences of each individual, and create a corpo-(1) Increase the ratio of new female graduate employees to atleast 30%.
(2) Cultivate an organizational climate where female employees can participate without worry.
● Introduce programs to support flexible work styles.
● Build systems to support career development.
● Conduct training to change the attitude toward female employees.

rate culture in which all people can fully demonstrate their abilities.

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 a workplace that considers theirhopes as an employee, such as the business category and number

New Female Graduate Employment Ratioof work days, to support their active participation.
C.I. TAKIRON holds Second Life Seminars as a place for employees in their 50s to learn how to plan and stay aware in their daily
life after retirement. This enhances both their public and private life

Joined 2018

Joined 2019

Joined 2020

Number of New Graduate Employment

12

14

11

Female

4

4

6

33％

29％

54％

Female Ratio

after retirement and builds a system able to facilitate even more
active participation.

Employee Composition

Status of Continued Employment for Retirees(Fiscal Year)

FY 2017

FY 2018

FY 2019

Number of Retirees

17

17

20

Number of Re-employed Retirees

10

15

16

Re-employment Ratio

59％

88％

80％

2019

84.5

15.5

2018

85.1

14.9

2017

86.6
0

20

40
Male

2) Employment of Disabled Persons

13.4
60

80

100
(%)

FemaleBoard of Directors/Audit & Supervisory Board Composition*

We support the employment

Board of Directorsof disabled people as part of

2019

2020

Total

9

8

3

4

active participation of diverse

Male

9

7

3

3

human resources, and we are

Female0101* Composition after the regular General Shareholdersʼ Meeting held each year

furthering the employment ofour corporate offices.

2020

Audit & Supervisory Board

our efforts to encourage thedisabled persons at each of2019

Employees who work at the Iwatsuki
Saitama Farm

System for Human Resource
Development

In addition, C.I. TAKIRON has been providing support aimed
at increasing disabled peopleʼs desire to work through the Work
Happiness Iwatsuki Saitama Farm since June 2019 by cultivating

C.I. TAKIRON establish two types of assessments, achieve-and harvesting vegetables. The vegetables that they harvest are

ment-based assessments and skill-based assessments, to serve as

deeply liked by employees. Their positive feedback also helps tothe core of a system to help the development of employees based

motivate everyone working at the farm.

on the belief that the growth of employees is the source of growth
for the company.

Employment Ratio of Disabled Persons
FY 2017

FY 2018

FY 2019

Employment Ratio of Disabled Persons

2.11%

2.11%

2.26%

Statutory Employment Ratio

2.00%

2.20%

2.20%

For achievement-based assessments, all employees set individual goals that match the goals of the organization to which they
belong and are evaluated according to their final level of achievement. Supervisors will consult with employees regularly to see ifthey are progressing according to the original plan while offering48

C.I. TAKIRON Group Integrated Report 2020

Foundation of Value Creation

advice to support their success toward these goals, which at theucation comprised of one-on-one English lessons as a job training

same time builds mutual relationships founded in trust. Throughelective, and offer overseas language study and practical training

these achievement-based assessments, employees see their contri-

programs. In FY2020, in order to prevent the spread of Covid-19,

butions to the company and their growth.

TOEIC IP tests and one-on-one English lessons, which are normallyconducted in person, will be provided online instead.

For skill-based assessments, abilities required for each occupation and grade are set in advance, and how those abilities are

Global Human Resource Development Foreign Language Study Abroad Program
Programs and Number of Participants (Training in England)demonstrated is evaluated at the individual employee level. This assessment helps employees to discover areas where they are strong

FY2019 Programs andNumber of Participants

and areas where they can grow to help them grasp the necessary
skills to further heighten their abilities.

Practical Overseas Training

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 for the employee toproceed by having both the supervisor and employee think about

1

Foreign Language Study Abroad

2

Domestic-based English
Language Education

14

e Learning-based English
Language Education

91

TOEIC IP L&R Test

71

the career path. The supervisor also creates a career development
plan to support employee development.

New Employee Training

Education and Training

training and practical training at plants were stopped and online

In FY2020, in order to prevent the spread of Covid-19, grouptraining was conducted for one month. Through introductory

C.I. TAKIRON has established an education system and provides

training, including web conference-based training in business et-a broad range of opportunities to foster the development of theiquette and marketing, we support the acquisition of necessary

employees who help enhance the value of the company while also

knowledge to serve employees as members of society as well as

helping the employees themselves grow. We have designed educa-

members of our company.

tion programs according to the career paths of our employees from

New employees join follow-up training after working at thetraining that develops the necessary skills by occupation and gradecompany for six months to consider their future career and verify

to education programs that teach active participation as global hu-

their development as well as use of their skills after being assigned

man resources, distance learning that supports self-development

to a particular post.

as well as incentive programs to acquire qualifications.

New Employee Mentor Development Training
Global Human Resource Development System

The new employee mentor development training for senior em-

In order for employees to play an active role at the global level,ployees who have been with the company for several years aims to

we promote examinations by paying TOEIC IP test fees, support En-

cultivate mentors (mentor employees) who support new employees

glish learning using e-learning, provide domestic-based English ed-both from a mental standpoint as well as with operational concerns.

Programs Designed to Improve Employee Skills
Program Name
Better Life Management Declaration Management Training
Manager Candidate
Training

Aims

Description● Understand the essence of the Better Life Management Declara-● Consider the duties of managers regarding the Better Life Man-

tion and the essence of Ideal Human Resources● Create a management stance aimed at organizational growth● Acquire skills necessary for career counseling● Reflect on career counseling● Understand oneʼs own abilities and characteristics● Examine oneʼs own abilities and characteristics through assessment

agement Declaration and Ideal Human Resources and exchange
opinions

and create/implement an action plan to develop those abilities● Acquire management skills● Discover the significance of working after retirement and im-

Second Life Seminar

Management Simulation Training
Sustainability Learning
Program(At MORIUMIUS LUSAIL)

prove motivation● Provide opportunities for considering plans after retirement● Give consideration to money planning● Understand and learn how financial statements work, how to● Use a PC to experience simulated corporate activities. Partici-

analyze them, and how to make decisions to improve management figures

pants manage the company via simulation in groups and makevarious decisions in order to improve business performance.

● Cultivate the ability to take action independently● Cultivate human resources who think about corporate activities

and SDGs in relation to each other● Understand and acquire necessary skills for training new em-

New Employee Mentor
Development Training

ployees● Build relationships that also allow mentors to grow throughguidance and training● Acquire a mindset that of a member of society and become

New Employee Training● Self-reflection and consideration of oneʼs future role

motivated to grow● Experience cyclical living, group-based life, and primary industry

through fishing and forestry● Understand the role as a mentor and the framework of how

to proceed with training guidance to create guidance policies
and training plans.
● Provide individual guidance, feedback, and acquire counselingskills● Understand about work as a member of society and acquire

the mindset for it● Basic work behavior acquisition● Learn business etiquette● Learn about teamwork and acquire communication skills

DesignedforManagers

Managercandidates
Employees between the agesof 55 and 57
8th and 9thyear employees
4th year
employees
Employees indepartments
to which new
employees are
assigned(by selection)New
employees*All numerical data on this page are non-consolidated figures for C.I. TAKIRON.

49

C.I. TAKIRON Group Integrated Report 2020

Foundation of Value Creation

Health and
SafetyBuilding a Workplace Together Where
Everyone Can Work Safely and Actively
The title is the name of the fiscal 2020 C.I. TAKIRON Group health and safety policies.
Employee safety and health is our top priority. We believe that living a fulfilling life while maintaining safety and health will stimulate corporate activity which will lead to value creation. Therefore, we are continuing activities to improve the workplace where we can work safely and actively.
We improve awareness in an effort to create a better workplace around 5S (Sort, Set in
Order, Shine, Standardize, and Sustain) activities with the full participation of employees andto ingrain a sense of safety in every employee. We strive every day with the goal of soundworkplace improvement with an atmosphere encouraging a free exchange of ideas.

Hideharu Iwasaki

Director
Managing Executive Officer,
Chief Operating Officer of the Production Division
Framework of Health and Safety Activities Between Group Companies

Health and Safety Management
System

C.I. TAKIRON Group
Health and Safety
Council

The C.I. TAKIRON Group regularly holds various health and safety meetings with the executives who are responsible for supervis-

C.I. TAKIRON

Each Business
Establishment
Health and Safety
Committees

Group
Companies

Each Company
Health and Safety
Committees

ing health and safety to determine policies on health and safety
activities as well as important measures to prevent accidents, andImportant Measures

to expand health and safety activities to C.I. TAKIRON and Group
companies.
(1) Group Health and Safety Council(2) TKCI Health and
Safety Manager Council(3) Group Health and Safety
Manager Council(4) Health and Safety Committees at
Each Business Establishment

Employees

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

Important Safety Measures

Important Health Measures(1) Eradicate accidents via safety
activities that all employees
participate in(2) Provide education and prac-(5) Promote employees to takepaid leave(6) Promote measures to improvehealth by actively using theresults of medical check-ups(7) Properly manage working
hours

tice basic safety activities(3) Quickly identify accident factors and practice measure to
mitigate risks(4) Comply with relevant laws
and regulations and fully re-

Secretariat
Safety: Plant Management
Department
Health: Human Resource
Department

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

spond to legal reforms

Activities at Production Sites
C.I. TAKIRON Group conducts various activities at each produc-

Health and Safety Activities at
Group Companies

tion site with the health and safety committees at the core.
The accident ratio of employees with a short work history of less

Each C.I. TAKIRON company develops and promotes health andthan five years was high at 46% in fiscal 2017 and 65% in fiscal

safety activities according to the integrated policies while working

2019 for the entire group. Therefore, we have drafted the Safety

to prevent labor accidents and any recurrence under the slogan

Education Manual for New and Transfer Employees. This manualfor every person to always think about safety and build a robust

defines the information, procedures, and follow-up common to

workplace. Each Group company also mutually shares and uses in-each production site. We are also working to vitalize and improveformation to build a system that promotes a higher level of healththe level of these activities by dividing Group companies andand safety as well as risk reduction.

production sites into five groups while conducting mutual safety
checks between plants (safety patrols between plants) to share information across sites, such as offering guidance and proposing
improvements for inconsistencies as well as incorporating quality
activities on oneʼs own site by looking at good points of other sites.

50

C.I. TAKIRON Group Integrated Report 2020

Foundation of Value Creation

FY 2019 Occupational Accidents (Including Injuries
with No Leave of Absence for All Group Companies)

Safety Simulation Training

Falling Objects 3%
Contact with High/Low Temperature
Materials and Machines 3%
Crashes 3%

TrafﬁcAccidents(Road)
9%
Falling9%

Sensory training toheighten the ability of
employees to anticipate
danger is vital to prevent
occupational accidents.
C.I. TAKIRON introduced
safety simulation equipment at the Aboshi
Plant in fiscal 2017 andconducted this sensory
Safety simulation roomtraining to heighten theability of employees to anticipate danger. We conducted this training primarily at production sites around the Aboshi Plant in fiscal
2017. In fiscal 2018, we brought in safety simulators to conduct
on-site simulation training for production sites throughout Japan.
As a result, 2,235 employees from all C.I. TAKIRON plants as wellas production sites of Group companies have taken the first phaseof simulation training as of March 2020.
In addition, we started providing the second phase of simulation
training in fiscal 2020. The first phase of training focused on experiencing danger and the focus of the second phase is not to downplay danger (to recognize danger at face value). By participating in
multiple training sessions like these, we also aim to maintain ability
to predict danger by employees.
Our goal is to eliminate occupational accidents throughout theentire C.I. TAKIRON Group by further expanding educational simulators that conform to production equipment, cultivating intuitionof familiar dangers in the workplace and thinking about how weshould make use of the awareness to improve a sense of danger aswell as an awareness about safety.

Pinching/
Entanglement
35%
Ratio by Type

Falls
9%
Collisions
9%

Cuts/Scratches
20%

Between
15 to 20 Years 0%
At Least
20 Years
12%
Less than 1 Years
32%
Between
10 to 15 Years
15%
Accident Ratio
Between
5 to 10 Years
9%by TenureFeedback from Trainees
Between 1 to 2 Years
23%

Employee from DAIPLA
Corporationʼs Matsudo Plant: “I experienced
pinching/entanglement
caused by revolving
machines and felt fear
regarding the strong impact. I feel like I was informed about the dangerof such machines. Since
there are many revolving
machines at my site, this Participants experience a dust explosion first handserved as a good experience.”
Employee from Hokkaido Sanplus Co., Ltd.: “This training mademe realize that what I thought was safe due to familiarity was actuallybordering on danger. It made me realize that lack of focus and being
accustomed to things pose the greatest amount of danger.”
Employee from DAILITE CO., LTD.: “It was beneficial to me as actually experiencing things first hand allowed me to become enlightened
about many things. Seeing is believing, and the sense of unity foundin the training was more effective than it appeared to be.”Employee from the Hiratsuka Plant: “Although itʼs my first timeworking at a factory and itʼs only been less than a month, it seemedstrange that I had worked in an unconscious manner for the past 30
years. Dangers are also present in everyday life, and I wanted to raise
my level sensibility so that I could always be aware of them.”
Employee from the Okayama Plant: “By experiencing it for myself, I was able to feel the fear firsthand again. I will keep in mind
that it is important for me to always work with the feeling of beinga beginner without being overconfident.”

Between 4 to 5 Years 3%
Between 3 to 4 Years 3%
Between 2 to 3 Years 3%

Points of the Safety Education
Manual for New And Transfer
Employees
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
Education plans
fully include Article
35 of the Ordinance on Industrial
Health and Safety

Conduct Safety
Education

Conduct Follow-up Education

Each plant shares
excellent education
procedures and ensures knowledge
and skills about
safetyFollow-up training
program is put inplace to ensure proficiency by defining
a period of timefrom six months toone, three, or within five years.

51

C.I. TAKIRON Group Integrated Report 2020

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 theentire organization, such as measures to address the problem of climate change and other social issues.

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

Basic Environmental 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 emissionsof harmful substances, reducing waste, and conserving energy and resources inall 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 of environmental conservation among our employees.

52

C.I. TAKIRON Group Integrated Report 2020

Environmental Report

Environmental Management System

Environmental Conservation
Activities and Results

C.I. TAKIRON states that it will always try to protect the global
environment in its management philosophy and formulates envi-

C.I. TAKIRON conducts environmental conservation activities

ronmental management rules and environmental diagnostic rules

based on the environmental management system, etc. of eachin order to comply with environmental regulations, reduce theGroup site. Our activities and the results of a self-assessment forenvironmental impact, supply environmentally-friendly products,

fiscal 2019 are outlined below.

save resources and energy, and reduce waste. In addition, our environmental management system, of which the Chief Operating

FY 2019 Activities and Results

Officer of the Corporate Planning Division (executive responsible
for environmental matters) is in charge, has been built to promote

Target

Item

Progress of Activities

environmental management throughout the Group. It serves as asystem to periodically review the progress of environmental protec-● Improved

Reduce wastetion activities of each Group site and related issues.

(1) Promote activities to reduce
theenvironmental impact Save energy

Environmental Management System▲Environmental Management Regulations

manufacturing yield and sorted
waste
energy (introduced/implemented energy-saving equipment
and devices, etc.)

SelfAssessment■● Saved● Complied

Meeting on the Production
Environment(2) Manage and reduce chemical
substances▲Environmental Management Regulations

Meeting to Promote

Comply withlaws andregulations

Reducedemissions andtransfer of
PRTR-listed
substances

Environmental Conservation

with 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.

■

● Conducted activities toreduce the use of listed
substances○○● Reviewed the status of(3) Publicly release
Environmenenvironmental
tal Report
activities

Management Conference

the environmental activities listed above● Publishedinformation
publicly through our Integrated Report and on
our homepage● Aggregated(4) Evaluate activEnvironmenities
throughtal Accountenvironmental
ing
accounting

environmental accounting inaccordance with Ministry of the Environment
Guidelines to serve asactivity management
evaluation
indicator
data

◎

○

● Performed

environmental management
evaluation via internal
analysis(Self-Assessment (Achievement Level) More than 90% : ◎90% : ○ Less than 70% : ■)53

70% toC.I. TAKIRON Group Integrated Report 2020

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.
We also further the reduction of our environmental impact by evaluating the efforts to reduce the environmental impact of each Group site as well as the results of those efforts to improve activities in the following fiscal year.

Energy and Resources Saving
Initiatives

Initiatives to Reduce Emissions
C.I. TAKIRON defines the total weight of waste, waste valuables,

The energy use, energy consumption rate, CO2 emissions, andand exclusive waste recyclables as total waste emissions, and de-unit CO2 emissions of both C.I. TAKIRON (non-consolidated) andfines the value obtained by dividing total waste emissions by ware-Group companies in fiscal 2019 were lower than in fiscal 2018.

house product volume as unit total waste emissions.

Although this was partially resulted due to decreased production

In fiscal 2019, we reduced the non-consolidated unit total waste

throughout the Group, we were able to improve our energy con-emissions of C.I. TAKIRON by 1.9% compared to fiscal 2018,

sumption rate and unit CO2 emissions through energy savings andachieving our target. This was the result of activities aimed at re-

manufacturing yield improvement activities at each Group site. We

ducing unit total waste emissions by 1% during the period. From

will also continue to promote these activities in fiscal 2020.

fiscal 2020, we will expand these efforts to include Group production sites and promote initiatives.

Changes in Energy Use and Energy Consumption Rate
(GJ)

Changes in Total Waste Emissions and Recycling Rate

(GJ/Manufacturing Ton)

2,500,000

14.0

(t)
16,0002,000,000

13.0

14,0001,500,000

12.0

1,000,000

11.0

(%)

100

12,00095

10,000
8,000

90

6,000
500,000
0

10.0

2015

2016

Non-consolidated consumption
Non-consolidated unit consumption

2017

2018

4,000

9.0
2019 (Fiscal Year)0

Consolidated consumption
Consolidated unit consumption

2015

2016

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

●(t-CO2/Manufacturing Ton)

120,000

2017

2018

Group Companies

2019

80

(Fiscal Year)
Recycling Rate

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

Changes in CO2 Emissions and Unit CO2 Emissions(t-CO2)85

2,000

Definitions

Waste emissions: Waste, waste valuables and exclusive waste recyclables emitted

0.8

from plants
100,000

Exclusive waste recyclables: Paper, paper fibers and scarp iron

0.7

Waste valuables: Items collected from waste emissions which can be sold

80,00060,000Waste: Anything other than exclusive waste recyclables and waste valuables con-

0.6

tained in waste emissions
Total waste emissions: Weight of waste emissions (total weight of exclusive waste

40,0000.5

recyclables, waste valuables and waste)

20,000

0

2015

2016

Non-consolidated emissions
Non-consolidated unit consumption

2017

2018

2019

Consolidated emissions
Consolidated unit consumption（

0.4

Recycling rate＝ 1－(Fiscal Year)*Data includes former C.I. Kasei Group Companies from fiscal 2017.

54

Weight of waste without any recycling
total waste emissions

）

×100

C.I. TAKIRON Group Integrated Report 2020

Environmental Report

Chemical Substance Management
and Reduction Initiatives

Initiatives to Effectively Use Water
Resources

The C.I. TAKIRON Group strives to reduce the use of PRTR-listed

C.I. TAKIRON Group calculates the amount of its water con-substances, which have a large environmental impact.

sumption and waste water for production sites throughout the

The emissions of PRTR-listed substances in fiscal 2019 were low-entire Group to effectively use limited water resources.
While furthering measures such as the recycling of waste wa-

er than in fiscal 2018. However, the amount of transfer increased
during the same period.

ter as cooling water in production process and the adoption ofwater-saving equipment, we performed repair work on pipes asa measure to prevent water leakage. This resulted in a decreasein waste water in fiscal 2019 compared to fiscal 2018. We willcontinue to employ efforts toward water consumption and waste
water reduction.

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
20,000400
200

0Toluene

2015

2016

2017

2018

2019 (Fiscal Year)Bis (2-ethylhexyl) phthalate

StyreneMormal hexane

Dichloromethane

0

2015

2016

2017

Non-consolidated

20182019 (Fiscal Year)

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

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

Changes in PRTR-listed Chemical Substance Transfers

Changes in Waste Water(kg)(Thousand m3)

35,0001,400

30,0001,200

25,0001,000

20,000800

15,000600

10,000

400

5,000

200

0

2015

Bis (2-ethylhexyl) phthalate

2016
Toluene

2017

2018

Manganese and manganese compounds02019 (Fiscal Year)

2015

2016

2017

Non-consolidated

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

20182019 (Fiscal Year)

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

55

C.I. TAKIRON Group Integrated Report 2020

Environmental Report

Disclosure of Scope 3 Data

Logistics Initiatives

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

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

idated Scope 3 data for its supply chain as of fiscal 2018 in orderkilometers annually. We have been submitting rationalization plans

grasp the amount of CO2 emissions throughout the entire supply

and regular reports to competent authorities while striving to im-chain, which is more important than ever before. We are now pub-prove load efficiency and switch to using large vehicles for trans-

lishing data about Category 1: Purchased Goods and Services in

port to achieve those plans.

addition to seven other categories.

In fiscal 2019, we actively transitioned to trailer trucks on our

As a result of verifying the state of our emissions, we discovered

main routes to factories and distribution bases. However, since siz-Category 1: Purchased Goods and Services makes up a large por-es that could be delivered in small lots were reduced, products thattion of our emissions in fiscal 2019 as it did in fiscal 2018.

could not be delivered in small lots had to be delivered by rental
vehicles despite their poor load efficiency. As a result, unit ratio

We will continue to further our efforts to reduce emissions

improvement was minimal.

throughout the entire supply chain by advancing considerations
since FY2020, such as the ongoing calculation and disclosure of

In fiscal 2020, we will further promote our transition to trailer

Group business establishments in Japan and enhancements to thetrucks on main routes. In addition, C.I. TAKIRON aims to further

calculation accuracy about categories published in this report.

improve load efficiency by streamlining measures such as bundled
orders from customers.

(Unit: Thousand Tons)

Changes in Freight Traffic

EmissionsCategory(Thousand ton kilometers)

FY 2018
1. Purchased Goods and Services
2. Capital Goods
3. Energy-related Activities Excluded in
Scope 1 and 2
4. Upstream Transportation andDistribution

214
15
7

22

FY 2019
177
24
13

25

5. Waste Generated in Operations

1

1

6. Business Travel

2

3

7. Employee Commuting

0.3

0.4

8. Upstream Leased Assets

OutsideScope

OutsideScope(Year-on-year Unit Ratio)

80,0001.08

70,0001.06

60,0001.04

50,0001.02

40,0001.00

30,0000.98

20,0000.96

10,000

0.94

0

2015

2016

2017

Transportation Quantity

2018

0.92
2019 (Fiscal Year)

Year-on-year Unit Ratio

Effectiveness of FY 2019 Ecoship and Modal Shifts

Calculation method: The calculation uses the emissions factor included in theemissions 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 the Ministry of Economy, Tradeand Industry.

Results

Unit

Quantity of CO2
reductions

188

t-CO2/year

Rate of CO2
reductions

42.2% (reduction)

Ecoship Logo

56

C.I. TAKIRON Group Integrated Report 2020

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 efficient environmental
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 Costs

Environmental Conservation Effect(Effect in Business Areas)

In fiscal 2019, investment costs for environmental conservation
decreased compared to fiscal 2018. This was due to a temporary

In fiscal 2019, we reduced the amount of energy consumption

increase in investment in fiscal 2018 due to large-scale capital in-through the promotion of energy-saving activities and other efforts

vestment as an energy-savings measure.

in addition to reducing carbon dioxide emissions.
We also reduced the amount of waste water from plants
through efforts such as recycling waste water as cooling water in(Unit: Millions of Yen)

FY 2018
Category(1) Business area costs

pairing pipes for leaks.
Total waste emission increased as a result of plant relocations,

InvestInvestCost
Cost
ment
ment
315

486

314

250

(1)-1 Pollution control costs

26

94

32

21

Break- (1)-2 Global environmental
down
protection costs

137

344

104

152

48

177

(1)-3 Resource recycling costs

production process, adoption of water-saving equipment, and re-

FY 2019

expansions, etc. The recycling rate decreased due to factors such as
the waste import control regulations in each country.
Item

FY 2018

FY 2019144

1. Power consumption (thousand
kWh)208,812

191,41185

2. Carbon dioxide emissions (t-CO2)

109,077

89,037

1,004

809

13,083

13,21094.0

91.1(2) Upstream/downstream costs

137

0

143

0

3. Waste water from plants (thousand m3)(3) Management activity costs

84

6

86

51

4. Total waste emissions (t)(4) Research and development costs

1

4

1

1

5. Recycling Rate

(5) Outside activity costs

22

5

14

0

(6) Environmental compensation costs

0

0

0

0

Total

560

501

558

302

Economic Effect of Environmental
Conservation
In fiscal 2019, figures for all items related to economic effect of environmental conservation decreased compared to fiscal 2018 due tofactors such as the waste import control regulations in each country.
(Unit: Millions of Yen)

IncomeCost
reductions

57

Effect ItemFY2018FY2019from sale of valuables

117

66

Energy cost reductions from energy
savings

44

17

Cost reductions from resourcesavings and recycling

261

177

C.I. TAKIRON Group Integrated Report 2020

Sociability 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 Shareholders andOther Investors
Engagement with Stakeholders

By practicing IR activities based on the C.I. TAKIRON Group Corporate Code of Conduct, the C.I. TAKIRON Group strives to formu-

We have put in place the policies below to establish systems andlate appropriate evaluations and aims to achieve lasting growth byinitiatives to encourage constructive communication with share-building trusting relationships with all of its shareholders and otherholders and all other stakeholders, including analysts and institu-

stakeholders.

tional investors.
(1) The Chief Operating Officer of the Corporate Planning Division

Dissemination of Information

will oversee matters related to communication with all share-

The C.I. TAKIRON Group complies with the Financial Instru-

holders.

ments and Exchange Act, timely corporate disclosure regulations(2) Relevant internal departments will ensure active and close co-of the Tokyo Stock Exchange as well as other laws and regulations

operation to share information with other relevant departments

to properly and fairly provide accurate corporate information to

in order to support communication with all shareholders.

shareholders and other investors. In regards to informational dis-

(3) C.I. TAKIRON will properly conduct investor briefings as well as
surveys and other dialogues with shareholders.

closure, C.I. TAKIRON releases important information through theCompany Announcements Disclosure Service (TDnet) provided by(4) C.I. TAKIRON will regularly report feedback from all the share-

the Tokyo Stock Exchange in addition to publishing information on

holders earned through the initiatives in (3) at the Board of

the corporate website quickly after it is released.

Directors meeting and the Management Committee. Furthermore, the Board of Directors will review the voting results andreflect the feedback from shareholders in management.

Shareholders
and Other
Investors(5) C.I. TAKIRON must never disclose material facts not yet officially
Customers

will thoroughly adhere to regulations on insider trading.
Business
Partners

Employees

Government
andMunicipalities

Safety andSecurity

Resilience

disclosed in communications with shareholders and managers

Local
Communities

Provision of
Value

Comfort andPeace of Mind

Environment

58

C.I. TAKIRON Group Integrated Report 2020

Sociability Report

Stakeholders

Shareholders
and Other
Investors

Customers

Business
Partners

Local Communities

Government
and Municipalities

C.I. TAKIRON Group Responsibilities

In order to meet the expectations of
our shareholders, we will strive to increase corporate value through highcapital efficiency, fair and impartial
information disclosure, proper returnof profits, and sustainable growth.

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

Department

Frequency ofCommunication

General Shareholdersʼ Meeting

Once a year

Integrated Report and Annual Report

Once a year

Notice to Our Shareholders report forshareholders

Twice a year

Corporate governance reports

Occasionally

Shareholder surveys

OccasionallyFinancial results briefings

Twice a year

News releases

Occasionally

CSR Department

ESG rating agency survey responses

Occasionally

PR Department

Website and advertisements

Occasionally

Sales activities and social media

Daily basis

Exhibition spaces, expos, and events

Occasionally

Planning Department

IR Department

Sales Department

Quality certificates
Quality Control Department

Inspection reports

Daily basis

Delivery specifications
Customer Support Department

Inquiry responses

Daily basis

When procuring materials, we base
our actions on openness, fairness
and impartiality, legal compliance,
mutual trust, and consideration for
the environment, striving for coexistence and mutual prosperity bydeepening partnerships and throughimpartial transactions.
We will also work to promote CSR
and compliance with the cooperation of our business partners.

PR Department

Website and advertisements

OccasionallyCompliance Department

Consultation and Report Desk

OccasionallyMaterial procurement activities

Daily basis

Supplier briefing sessions

Regularly

CSR procurement surveys

Once a year

We contribute to the developmentof local communities through ourbusiness, coexist with them, and emphasize environmental conservation.
We consider and implement measures that meet the needs of eachregion and promote trusted businessactivities.

PR Department

News releases

Occasionally

Employee-based volunteer activities

Regularly

Dialogues with NPOs and NGOs

Occasionally

Plants and offices

Exchange in local communities, study
support, and plant tours

Regularly

We comply with laws and regulations
and strive to disclose information ina timely and appropriate manner. In
addition, we support disaster recovery and reconstruction through various efforts in cooperation with thegovernment and municipalities.

CSR Department

Employee-based volunteer activities

Occasionally

Plants and offices

Coordination with relevant government organizations

Regularly/
Occasionally

Messages from the Chairman andPresident

Occasionally

Various employee surveys(Implementation of surveys publishedin-house, for each category of job
training, etc.)

Occasionally

Intranet

Occasionally

In-house bulletin

Four times a year

Purchasing Department

CSR Department

Planning Department

Employees

Communication Tools

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

PR Department
Compliance Department

Human Resource Department

Each department

59

Internal reporting system

OccasionallyCounseling with occupational physicians

Regularly/
Occasionally

Health and Safety Committees

Regularly

Labor-management consultations

Regularly/
Occasionally

Personal interviews with superiors/subordinates

Regularly

C.I. TAKIRON Group Integrated Report 2020

Sociability Report

Together with Customers
Quality Assurance Initiatives
C.I. TAKIRON promotes quality assurance activities to fulfill the

Furthermore, a database consisting of product claim informationneeds of customers and ensure quality at every stage from theis created so that the cause of claims, improvement progress sta-planning and development of products to the production and aftertus, and details of recurrence prevention measures can be grasped

sales services to provide a quality able to satisfy our customers un-

in real time throughout the company. We are attempting to utilize

der the motto to be the best of the best. We have given our Basicthe information as design verification data when making productQuality Policy the meaning of “We build and strengthen trustfulimprovements and during new product development (please referrelationships with our customers and improve customer satisfac-

to Changes in Number of Claims and Claims Requiring Processing

tion in all our business activities,” which serves as the core of ouramount of money).
In fiscal 2019, we responded to the recent spread of quality is-

Quality Management System (QMS).
As for specific quality assurance activities, at first we have fa-sues as a risk measure. As one of our corporate risks, for products

cilitated contact points as a means of communication with our

subject to third-party verifications, authorizations, and foreign laws

customers such as a contact form on our homepage and a toll-

where it was determined that quality was misrepresented resulting

free telephone number to our customer service center in orderin high impact on customers, after conducting an independent risk

to improve customer satisfaction by responding faster and moreassessment based on how often issues occur and the monetary

accurately to customer inquiries and requests. We are building a

impact at the time of occurrence, an internal audit by the Quality

system to improve our products and services by utilizing customer

Assurance Department for high-risk products. As a result, no de-feedback that is provided through these contact points.

fects were detected.

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

In the future, we will build a system which will allow us to regu-

basic system for our quality assurance activities, which functions as

larly perform audits such as this one at each production site.

an important pillar of the QMS that we have built (please refer toFramework of the Quality Management System).

Changes in Number of Claims and Processing Amount of money

We have prepared a framework to objectively verify the opera-(%)

tional progress of this quality management system through inter-120

nal audits by each production site and audits by the head office.

100

100

80
60
40

31
19

20
0

2017
Number of Claims

2018

2019

(Fiscal Year)

Processing amount of money

Framework of the Quality Management System
Plan

Do

Customer Needs
Market Trends

Products
Planning

Products
DesignCheck

Products
Preparation

Sales Services

Act

Customers Satisfaction
Complaints/Claims

Voice of Customers

Handling Framework for Substances Contained in Products
Customers

Business Partner A
Business Partner B

SDS(Safety Data Sheet) Applicable Information

Information about
Legal Amendments

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

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.)

Head Office andEach Production Site
Various Amendments andOther Information (RoHS, REACH, etc.)

Various Databases

60

Browsing/Distribution of Information
Product Information

Administrations/
Industrial Associations
Business Divisions

C.I. TAKIRON Group Integrated Report 2020

Sociability Report

Safety Initiatives

Environmentally-Friendly Procurement

Handling Chemical Substances Contained in
Products

to this end, we will prioritize the selection of companies with ambitious en-

We aim to realize a sustainable, recycling-oriented society. As a means
vironmental conservation activities, specifically business partners empha-

We have not registered with the EU REACH Chemical Compli-

sizing the development of plant-based and biodegradable resins as wellance Services because more than half of the products at C.I. TA-

as technological development for recycling while promoting procurement

KIRON are molded products. However, C.I. TAKIRON will commu-

of resources with a low environmental impact. C.I. TAKIRON focuses on

nicate information to customers and appropriately handle chemicalevaluations from an environmental viewpoint as well as the conventional

substances based on the 209 chemical substances, including theperspectives of quality, cost, and delivery to further green procurement.

four substances publicly announced on June 25, 2020, as well as

Fair and Impartial Dealings

substances of very high concern (SVHC) that will be added in the
future from our position as an intermediate in the supply chain.

We will build fair and impartial business relationships founded on the

We also share the proper information with our customers based

principle of competition open to all regardless of affiliation, the size ofon the flow for handling procedure even for chemical substances

the company, business track record or other such factors without rely-contained in other products.

ing on conventional business practices. We also aim for mutual growth

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

while always keeping in mind the need to build trusting relationshipchemical substances in accordance with the amended Food Sanita-

of respect with business partners from the stand point of both parties.

tion Act enacted on June 1, 2020 in addition to the various other

Corporate Social Responsibilities

laws and regulations.

C.I. TAKIRON will conduct material procurement in accordancewith its corporate social responsibilities. We will fulfill these so-Together with Business Partners

cial responsibilities to respect human rights, ensure occupational

Material Procurement Policy

environmental impact and eliminate any and all relations with an-

health and safety, comply with laws and regulations, reduce the

Our mission is to find harmony with the environment and pro-ti-social forces through cooperation with our business partners.

vide people- friendly products to society in all of our activities

Global Procurementfounded in plastic materials and material processing technologies.
We pursue partners able to persevere in product development

C.I. TAKIRON strives to explore materials and technologies thatthrough material procurement with us by exploring a broad range ofare able to quickly satisfy the needs of customers broadly pursued

materials and technologies such as materials related to plastics, metal

worldwide without restricting material suppliers to Japan. We al-materials for plastic composite materials as well as processed products.

ways keep an eye on raw material market conditions in Japan and

In addition, aiming for the sustainable development of society,overseas to realize stable procurement and optimal costs.

we will formulate a CSR procurement policy and promote CSR pro-

Addressing the Issue of Conflict Minerals

curement throughout the supply chain.

Environmentally-Friendly
Procurement

Specified materials (tin, tantalum, tungsten, and four types ofgold) 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 the financial
sources of armed insurgents. The C.I. TAKIRON Group recognizes
conflict minerals as a priority CSR issue and will further inspectionsof the supply chain with the cooperation of its business partners tofoster its corporate presence in the international society.

Corporate Social
Responsibilities

Material
Procurement
PolicyFair and Impartial
Dealings

Global Procurement61

C.I. TAKIRON Group Integrated Report 2020

Sociability 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.

We will continue these efforts in support activities in the future

Coexisting with Communities
in Areas Around Business andProduction Sites

to contribute to each region and assist afflicted areas.

Main Activity Results (FY 2019)No.

ActivityNo.

in fiscal 2019 that includes its active participation in environmental

Local community beautification activity

Activity

24

Volunteer activities for community welfare

6

conservation and beautification activities in local communities as

Participation in community
events and activities

10

Volunteer activities for marine
plastic pollution cleanup

2neighboring schools, reception of internships as well as its engage-

Provision of resources to community events and activities

8

Volunteer activities in disaster
afflicted areas

1

ment in volunteer and donation activities in disaster afflicted ar-

Donations to local communities

25

Resource collection

4

Monetary donations to afflicted
areas

3

eas and local community directed contribution activities. As a new

Blood drive/paramedic/
fire-fighting activities

5

cleaning activities as one of the activities to reduce the amount ofOccupational trainings/internship offerings

2

marine plastic pollution.

Total

92

C.I. TAKIRON Group has a proven track record of major activities

well as local events, offering occupational trainings to students in

Planting activities

initiative, we have started participating in volunteer waterfront

2

Progress of Activities

Cleaning Activities Around the Plant (Tochigi Plant)

Black Edamame Planting Activity (Support for Recovery from theGreat East Japan Earthquake) (NIPPON POLYESTER CO., LTD)

Dinner with Elderly Living Alone (Yasutomi Plant)

Participating in Sano City Disaster Volunteer Center activity(Sano Plant, Head Office)Lake Biwa Clean Campaign (DAIPLA CORPORATION)

Cleaning Activities Around the Plant (TAKIRON TECH CO.,LTD)

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

Participation in the Cosmos Festival (Ibogawa Plant)

Sagamigawa River conditions check, cleaning, and planting
activity (Hiratsuka Plant)62

C.I. TAKIRON Group Integrated Report 2020

Sociability ReportSocial Contribution Activities
Aimed at Preventing COVID-19
Infection

Handle marine plastic pollution
Plastics are economical, offer excellent moldability, and have enriched peopleʼs lives due to many characteristics such as lightness, cor-

With the spread of COVID-19, in April, we donated clear par-rosion resistance, and beneficial hygienic properties. In recent years,

titions made of PC (polycarbonate) designed to prevent drop-

plastics have contributed to solving social issues, such as improving

let-based infection to Irie Hospital (Himeji City, Hyogo Prefecture)energy efficiency and reducing food loss through advancement of its

in April as an effort to support medical workers. In May, we donat-

functions. However, the current situation shows that proper disposal

ed 1,000 PC face shields, an aerosol box currently under develop-

after use has not progressed worldwide and it is estimated that 8 mil-ment, and partitions design to collect particle samples to Tatsuno

lion tons of plastic waste is washed away into the sea every year (Ref:

Municipal Hospital in Tatsuno City, Hyogo Prefecture, and 1,000PC

The New Plastics Economy - Ellen MacArthur Foundation), making theface shields to Osaka City Public Health Bureau (Osaka Prefecture).

marine plastics problem a serious social issue. C.I. TAKIRON has identi-

In addition, we donated PC clear partitions for use at 11 recep-

fied responding to the marine plastic issue as one of its material issues

tion desks in Tatsuno City Hall (Hyogo Prefecture) and also donatedand is working on countermeasures. We have launched the Waterside

500 face shields to Tatsuno City elementary and junior high school

Clean Aid activity as a countermeasure in which employees and theirteachers through thefamilies participate in volunteer activities to clean up coastlines, rivers,

Tatsuno City Board

lakes, etc. which are carried out in each region. We will continue and

of

and

promote this activity so that

other organizations.

more employees and their

Education

We will continue

families can participate soto actively promotethat they can experience pol-socialcontribution

lution conditions near bodies

activities in the local

of water and address the ma-

community throughrine plastics issue seriously.

the utilization of ourown products.

Clear partitions

Face shield

Aerosol box
Arakawa Clean Aid

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

Minoh Mountain Great Clean Up Campaign

the Japanese Para-Swimming Federation.

63

C.I. TAKIRON Group Integrated Report 2020

GovernanceFeatured Section Panel Discussion with Outside Directors

Corporate Governance and Value Creation

Mune Iwamoto

Kenichi Hatano

Yoshiko Kosaka

Outside Director

Outside Director

Outside Director

Our team of outside directors now consists of three people, with Yoshiko Kosaka joining this year as the companyʼs firstfemale director.
We held a panel discussion with outside directors Mune Iwamoto, Kenichi Hatano, and Yoshiko Kosaka to exchange
opinions and make suggestions on the roles of outside directors, our corporate governance system, and the value thatour business creates for society.
(Panel discussion held on July 20, 2020. Hironori Kikuchi, Executive Officer and Chief Operating Officer of the Corporate
Planning Division, served as panel discussion facilitator.)

1 The Roles Required of Outside Officers
Kikuchi: This year, C.I. TAKIRON formed a three-person outside director team. Please tell us how you perceive the roles of outside directors.
Iwamoto: The basic principles of the Corporate Governance Code established by the Tokyo Stock Exchange consist of
the responsibilities of the board of directors (“The board of directors of a listed company promotes sustainable growthof the company and improvement of corporate value over the medium-to-long term, based on trustee responsibility
and accountability to shareholders, and aims to improve profitability and capital efficiency.”), and clearly indicatesspecific roles to be “Setting the broad direction of corporate strategy, etc.,” “Establishing an environment where appropriate risk-taking by the senior management is supported,” and “carrying out effective oversight of directors andthe management from an independent and objective standpoint.” In accordance with these basic principles, outside
directors are required for companies in Japan and around the world serving as members of boards of directors (supervisory bodies) who are “independent and objective” as they do not perform direct business duties as executives whoare concerned with “people, goods, and money.” From this perspective, the outside directors of this company also
participate in meetings for reviewing the next medium-term strategy where I join them in making suggestions andproviding my opinions as general ideas. In this way, we can say that we have properly created an environment in which
outside directors can fulfill their roles.
In regard to specific supervisory issues, I also donʼt hesitate to participate in discussions on execution so that I canbetter understand business content. If one doesnʼt understand the details of their business, they will not be able to64

C.I. TAKIRON Group Integrated Report 2020

Governanceparticipate in discussions only having the appearance of serving as a supervisor. This company has a Nomination andRemuneration Committee, more than half of which is made up of outside directors, who participate in the evaluationof executives through supervisory work. Regarding the effectiveness of the Board of Directors, the Board of Directors
itself becomes more effective in its duties by responding to the opinions and questions of us outside directors as
non-executive directors. Since this will strengthen discussions held by the Board of Directors, I expect that its effectiveness in improving corporate value will increase.
Hatano: Regarding the roles of outside directors, I recognize that we have the roles of providing, from an external
objective standpoint, advice that is useful for sound management-based decision making and supervision so that governance issues do not occur. Although it has only been two years since I was appointed as an outside director, I havegained a wide range of experience from the standpoints of both labor and management during my active career. I
want to use this experience and knowledge acquired to contribute to the continuous development of the C.I. TAKIRONGroup and improving corporate value.
As corporate governance serves as the core of management, I think that we have been continuously enhancing andstrengthening our corporate governance system since the management integration through actions such as becoming
a company with a board of directors and audit & supervisory board, establishing the Nomination and Remuneration
Committee, and increasing the number of outside directors.
Outside directors are given prior explanations regarding the operation of the Board of Directors so that they can participate in discussions. During Board of Directors meetings, lively discussions take place from various angles, and I thinkthat the final decisions are made after thorough discussions on particularly important management matters.
This year, Ms. Kosaka was appointed as an Outside Director, resulting in the formation of an outside director teamcomposed of three members. In addition, Ms. Osuna and Mr. Araki have been appointed as Audit & Supervisory Board
Members. I recognize that people expect the Board of Directors to carry out lively discussions based on the broader
knowledge it now possesses. I would like to exchange opinions with Board of Directors member from time to time sothat we can strive to fulfill each otherʼs roles and responsibilities.
Kikuchi: Ms. Kosaka...you were newly appointed as an Outside Director this year and have an objective
view of things as a lawyer. What are your initial impressions so far?
Kosaka: Although I have not actually participated in Board of Directors meetings yet, after seeing the results of thequestionnaire and hearing the opinions of Mr. Iwamoto and Mr. Hatano, I had the impression that the supervisory re-

Photo (Right): Hironori Kikuchi, panel discussion facilitator

65

C.I. TAKIRON Group Integrated Report 2020

GovernanceFeatured Section Panel Discussion with Outside Directors

sponsibilities and duties of the Board of Directors pertaining to business executed by the company are being effectively
carried out. In addition, as a result of the management integration, awareness of strengthening corporate governancehas increased overall and I feel that it has already been put into practice. Since corporate governance seems to be inplace as a system, I think an important matter of focus in the future will be how to maintain and further develop it.
When participating as an Outside Director from here on, I will form my own opinions such as the state the Board of
Directors should be in based my experience so far, and would like to actively suggest improvements and provide opinions while also taking into account conventional board directionality.

2 Evaluations of Corporate Governance and the Board of Directors
Kikuchi: Please share with us you specific evaluations, impressions, suggestions, etc. regarding the companyʼs corporate governance or the current overall operations of the Board of Directors.
Iwamoto: Regarding my evaluation of the boardʼs effectiveness, as stated in last yearʼs Integrated Report, questionnaire results point to a need to enhance discussions on medium- to long-term strategies. This is one issue. For mediumto long-term strategies, it is necessary to actively make proposals and raise questions focusing on external environmental issues. I think this company can become stronger than ever before if discussions are held looking at a wide rangeof aspects, such as the general political economy and overseas markets, including environmental issues, markets andbusinesses in segments different from our company, and future competition when the market is viewed from a broad
perspective, to create strategies with a sense of narrative. In particular, future strategies should involve deepening ourawareness of the external environment, including becoming more aware of our competitors, so that we can objectively
recognize ourselves in the world and Japan. This should pave the way to further increasing corporate value.
Hatano: The effectiveness of the Board of Directors is evaluated annually, and it has been determined that its effectiveness is ensured. Although there are some aspects concerning current business content which nothing can be doabout, I think that there is a strong tendency to think inwardly and about matters mainly in Japan. However, we haveentered an age of great change with the Japanese market continuing to shrink.
Currently, discussions are being held on what the Group wants to become 10 years from now. Once that concept isfinalized, a business plan (medium-term plan) will be formulated for its realization. I would like to see the next medium-term plan contain challenges that take into account overseas strategies and changes in the business environment
so that all Group employees can work while maintaining aspirations and a sense of fulfillment.
Kikuchi: As you have all indicated, I personally feel that C.I. TAKIRON needs to see things from a larger
perspective on a global level. I would like to see the company continue to receive a wide range of opinions to reflect in corporate planning.
On the other hand, IR and dialogues
with shareholders have raised issues
for several years in the effectiveness evaluation. The IR & PR Groupwas established within the Corporate Planning Department in 2019
and was reorganized to become the
Corporate Communication Group in
April 2020. The company had beenstrengthening its IR activities, suchas publishing an annual Integrated
Report starting in fiscal 2019 as oneof the tools for communication withstakeholders. Can you give us youropinions on this?

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C.I. TAKIRON Group Integrated Report 2020

Governance

Iwamoto: The Board of Directors also recognized that the companyʼs investor relations initiatives were insufficient.
Institutional investors possess a great deal of information, meaning that good communications with them can greatly
benefit our company. Although it may not be necessary to provide too many details, if we tell them what we want toaccomplish and deepen their understanding, I think that they will also provide us with useful suggestions. That said, I
would really like to proceed with improving communications with them.
Hatano: Well, as Mr. Iwamoto stated, there were quite a few people who said that IR initiatives were insufficient.
Meanwhile, our Integrated Report was published for the first time last year. The Integrated Report covers the entire
company, including company business conditions, its governance system, and issues that need to be addressed to
improve future corporate value, meaning that it provides important information to all stakeholders, including shareholders. I think it is a big step forward. I believe that if we continue to enhance our IR activities, we will be able toobtain useful information for management from institutional investors, deepen their understanding of our company,
and receive a greater level of support.
Kikuchi: By the way, Mr. Iwamoto and Mr. Hatano have been very excited about you being added to thecompany as an Outside Director. How enthusiastic are you about your new position?
Kosaka: Being the first female Outside Director for the company, I feel a great deal of responsibility and peopleʼs expectations, so I think that I must fulfill my responsibilities sufficiently. Diverse perspectives and values are important for
a company to continuously develop and grow. Therefore, I think that my first role is to also reflect a female perspective
within the Board of Directors. Although women have different positions and ways of thinking, they cannot be easily
grouped together. However, I would like to make use of the interests and perspectives of many women and mothers,
such as creating safe environments for homes and schools and protecting the global environment, when looking at
our medium- to long-term company vision.
In addition, although it is necessary to secure diverse human resources for the sustainable prosperity of the company,
it is difficult for excellent human resources who are female to gather in a company where there are few active women.
In this sense as well, I hope that the appointment of a women as an Outside Director will convey that the company isfocusing on promoting the active participation of women. I also hope to see this lead to the fostering of a corporate
culture that allows women with families, etc. to work actively.

3 The Value Created by the C.I. TAKIRON Group
Kikuchi: In 2019, the Group established its Value Creation Process and defined safety and security, comfort
and peace of mind, resilience, and the environment as the four outcomes of the value that our products andbusinesses produce. How would you rate the Groupʼs efforts to resolve social issues based on this process?
Iwamoto: The issue is how to make the current Value Creation Process, which still has some abstract parts C.I. TAKIRON specific. Many of our outcomes contribute to solving social issues, such as sheets that prevent pollutants from
penetrating into the ground, sewer pipes, and Lume Carbo (large polycarbonate plastic double-layer panels), and arecharacterized by their easy-to-understand appearance. This is the biggest reason why the company has, in some form,
remained in business for 100 years. In order to continue our business operations in the future, I think it is necessary toconsider not only social contribution but also profits and further investigate strategies, examining for example which
fields to invest our resources in, what kind of business we will create and who will create it with, and whether weshould change the value chain.
Hatano: It is easy to understand the initiatives for realizing our corporate philosophy based on the Value Creation
Process. Solving social issues addressed by the five SDGs will contribute to the sustainable development of society. In
recent years, while social infrastructure has deteriorated, large-scale disasters, including floods caused by abnormal
weather, are occurring one after another. Our infrastructure-related products and technologies are indispensable forthe restoration and maintenance of such infrastructure and the building of a strong homeland. I also think that our67

C.I. TAKIRON Group Integrated Report 2020

GovernanceFeatured Section Panel Discussion with Outside Directors

technology and knowledge, which has been cultivated over many years, can be utilized to solve the waste plastics
problem and other issues. In this way, we are a corporate group that can create diverse social value and contribute to
the sustainable growth of society. I would like for all our company members to work toward further development withpride and confidence.
Kosaka: Looking at our materiality (important issues), there are many items related to “our responsibilities to society,”and this reflects the characteristics and history of our company. It is necessary and expected for us to continue utilizing
the technologies that fulfill “our responsibilities to society” for purposes such as disaster preparation and recovery efforts. I feel that we should more actively disseminate information about the role that we have played to society.

4 Issues Concerning Sustainable Growth
Kikuchi: In regards to efforts for sustainable growth, we have been implementing various measures, suchas the Better Life Management Declaration which was established in fiscal 2018 from a human resource
development standpoint. Please share your opinions on what is necessary and important for sustainablegrowth as we head toward the future.
Iwamoto: Sustainable growth is the improvement of corporate value over the long term rather than chasing after
immediate profits. It is important to have firm, long-term targets, clarify the corporate strategy of how to make profits,
and then identify the businesses capable of making profits that contribute to society. For this, the number one issue isto improve our capability of collecting and processing information, which can be called corporate intelligence, ability
to create business strategies, and systematically create and refine a system for increasing/accumulating intellectual
property.
Hatano: Specifically, for sustainable growth there is promotion of SDGs management, business globalization, newbusinesses creation through innovation, shift to an organizational culture where work is challenging, and developmentof human resources. Since the social and industrial structure is undergoing major changes, it is not possible to respondwith a conventional sense of awareness and ideas. It is necessary to create new products and businesses through innovation and provide new value. Therefore, it is important to shift to an organizational culture where work is challenging
and develop human resources. In regard to human resource development, I think it is necessary to urgently develop
human resources who will be responsible for globalization and digitalization.
Kosaka: C.I. TAKIRON has the image of being a long-standing company that possesses excellent plastic technology,
something that I think all employees are proud of. In the future, in addition to preserving that corporate image, thecreation of new businesses will be extremely important. During a factory inspection the other day, I saw a whiteboardthat can be attached to a wall and written on directly. I thought that this and some other products that I saw could
also be utilized for home use. This leads me to believe that conventional products and technologies can be utilized in
new ways by changing how we look at them. Also, for sustainable growth, it is important to get employees to wantto support the company. From that perspective, I think we should actively consider efforts to disseminate informationand provide explanations to the general public.

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C.I. TAKIRON Group Integrated Report 2020

Governance

5 Corporate Culture Reform That Leads to New Value Creation
Kikuchi: We implement initiatives such as “SDGs - My Challenges,” an effort to make all employees moreaware of the Sustainable Development Goals. Volunteer cleanup activities such as Waterside Clean Aid anddisaster support activities that were started as parts initiatives designed to tackle social issues are carriedout as ways to make the SDGs personal responsibilities. What do you think of the impact that these initiatives have on the Group, especially from the perspective of the corporate culture?
Iwamoto: When we ask employees who engaged in the cleanup activities for feedback, we received responses such as“There is really this much garbage out there?!” and “Our products hardly comprise any of the garbage out there.” This
made us understand just how important it is for employees to actually experience the garbage problem for themselves.
This feeling will build among employees and grow into a facet of corporate culture. Since these are volunteer activities, it is not easy for everyone to participate. However, whoever does will spread the word about the efforts to thosearound them. In addition to short-term business activities that seek profits, it is important to foster a corporate culture
as part of a long-term corporate strategy. Therefore, I think these cleanup activities are very beneficial.
Hatano: I also received feedback from employees who participated in cleanup activities. I think that there are manythings that people will notice and problems that they become aware of only after they start participating in the activities. By tackling the social issues addressed by the SDGs on a personal level, I think it will allow us to see what thecompany should be like 10 years from now, how we should be involved with society, etc. In that sense, I expect thatour “SDGs - My Personal Challenges” initiative will be a means of self-reform and corporate transformation. Although
I think that we are a company with a conscientious corporate culture, I feel that we are slightly lacking in our willingness to take on challenges. While promoting awareness reforms and a shift to an organizational culture where work
is challenging, I think it is important for labor and management to aim and work at holding common values, unifying
their intentions, what is needed by society, and what will lead to the provision of new value. I think this will makeemployees and their families happy.
Kosaka: My first impression of C.I. TAKIRONʼs corporate culture was that it was a serious company with a history
and technology but that it is a little weak in terms of calling attention to its corporate value. It is important to take on
the challenge of creating new businesses while keeping in mind the companyʼs serious, gentle corporate culture andhistory. Activities such as Waterside Clean Aid are necessary for that. This is because when one event that has an impact occurs, a new flow of challenges tends to occur in a chain. I expect that the awareness of each participant in theactivities will increase and become the driving force for transforming the company into what it will be 10 years fromnow, leading to the creation of a new corporate culture.

In Conclusion
This panel discussion with Outside Directors was the first attempt of its
kind brought about due to the Integrated Report. It allowed us to receive
objective and specific opinions and suggestions, and I think it serves as areally meaningful opportunity for exchange of opinions and suggestions.
Regarding the management of the Board of Directors and corporate governance, we will promptly start improvements. For management themesthat require multifaceted discussions such as SDGs management, value
creation, and improvement of corporate culture, we will create opportunities for healthy opinion exchange in the future.
Hironori Kikuchi
Executive Officer and Chief Operating Officer of the Corporate Planning Division

69

C.I. TAKIRON Group Integrated Report 2020

GovernanceCorporate Governance
C.I. TAKIRON earns the trust of all of its shareholders and other stakeholders by improving the efficiency and transparency of management. Our basic philosophy in corporate governance strives to foster sustainable growth and enhancemedium- to long-term corporate value.
We have continued to promote initiatives to enhance corporate governance as one of the most important management
challenges. In fiscal 2019, we strengthened our system for dialogue by increasing the ratio of independent Outside Officers,
deciding on institutions to ensure the diversity of the Board of Directors, and establishing a department specializing in IR.

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 plan from 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 forstakeholders in a proper and timely manner through mediums that include the corporate website in order to engage in fair andhighly 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 core of management strategies of the entire Group to build a consensus toward accomplishing the corporate goals. In
addition, C.I. TAKIRON has adopted an executive officer system to clearly separate auditing and business execution functions ingovernance while the Board of Directors conducts highly effective supervision of director and executive officer performance aswell 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

Initiatives for Enhancing Corporate
Governance

Composition
In order to further improve management independence, trans-

Overview of the Corporate Governance System
Organizational design typeparency, and fairness, three Outside Directors among the total

Company with Board of
Directors and Audit & Supervisory Board Members (Audit &Supervisory Board)eight directors were appointed during the June 2020 General
Shareholdersʼ Meeting, increasing the ratio of independent outside
directors to more than 1/3.

Number of directors (of which number
independent outside directors)

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

4 (2)Chairman of the Board of Directors

Representative Director andPresident (also serves as
Executive Officer)

knowledge of corporate management, overseas business, productTerm of director appointment

1 yearand corporate legal affairs, so that the Board of Directors is well

Advisory body to the Board of Directors

Nomination and Remuneration Committeebalanced in terms of knowledge, experience, and abilities. In ad-

Adoption of an executive officer system

In place

In addition, in order for Board of Directors to effectively fulfill
its roles and responsibilities, directors are appointed that possessa wide range of specialized knowledge and wisdom, including
development, research and development, production technology,

dition, we are working to ensure diversity, including gender andethnic diversity. During the June 2020 General Shareholdersʼ Meet-70

C.I. TAKIRON Group Integrated Report 2020

GovernanceCorporate Governance Framework
General Shareholders’ Meeting
Elect, Dismiss

Elect, Dismiss
Audit

Directors
8 Directors (of which 3 outside Directors)

Make decisions
and Supervise

Proposal of important matters
Reports on business execution

Consult
Supervise

Appoint,
Dismiss

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

Elect, Dismiss

Accounting Auditor

ReportNomination andRemuneration Committee

Accounting
AuditsAudit

Business Execution
ChairmanPresidentInternal Audit OfficeCompliance Committee

Management Committee

Audit

Corporate
Planning Div.

Proposal of important matters regarding business execution

Corporate
Administration Div.

Construction
Materials Div.

Environmental
Materials Div.

High Functional
Materials Div.

Specialty Films Div.

Production Div.
R&D Dept.

4 Business Segments

ing, we appointed one female director who possesses a wealth ofexperience, strive to monitor conflicts of interest between Directors

knowledge about corporate legal affairs.

and primary shareholders as well as other stakeholders, reflect theIn addition, streamlining of the Board of Directors and delega-

feedback from all of the stakeholders at meetings of the Board oftion to executive officers facilitates rapid decision making, and the

Directors, and greatly contributes to proper decision making andterm of appointment has also been set to one year to fully clarify

supervision of management.

the management responsibilities of directors and executive officers.

Nomination and Remuneration Committee
C.I. TAKIRON set up the Nomination and Remuneration Com-

Ratio of Independent Outside Directors

mittee as an advisory body to the Board of Directors with morethan half of the members made up of independent outside officers

38(3)

in order to heighten the independence, objectivity and transparen-

Directors%

8

cy of the Board of Directors in the nomination of directors, Audit& Supervisory Board Members and executive officers as well as in(7 males, 1 female)the remuneration of directors and executive officers. Any important matters related to nomination or remuneration are evaluatedunder this committee before approval by the Board of Directors.

Roles of the Board of Directors

Composition of the Committee

The Board of Directors convenes once a month as a general rule

Independent
Outside Directors

in accordance with the Articles of Incorporation and the regulations of Board of Directors to make vital management decisions

50

% (2)

Committee Chairperson

and monitor the performance of each director.

Mune Iwamoto Independent Outside Director

In addition, the Board of Directors also assigns tasks to the directors and executive officers who report on performance and theMembers

progress of business execution at least once every three months to

Yosuke Minamitani Director Chairman
Kenichi Hatano Independent Outside Director
Toshiro Okajima Audit & Supervisory
Board Member

be Board of Directors.
The outside directors actively provide advice from an independent standpoint based on their expert knowledge and wealth of71

Members4

C.I. TAKIRON Group Integrated Report 2020

GovernanceIntroduction of the Group Executive Officer System

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● Matters related to the appointment and dismissal of representative and executive directors● Remuneration policies for directors and executive officers● Examination of processes to determine remuneration for
directors and executive officers

On April 1, 2020, we introduced the Group Executive Officer
System to accelerate our overall group growth strategy as a means
for strengthening governance of the Group.
Group Executive Officers are in charge of the management of core
operating companies while taking a birdʼs-eye view of overall Groupmanagement in each of the companyʼs business areas, and strive
for prompt, appropriate decision making and flexible management.

Group Executive Officers
Name

Progress of Activities in FY2019
Number of times the Nomination and Remuneration
Committee convened 3
Main Committee Agenda Description● Matters related to revisions of the stock remuneration planfor officers● Matters related to bonuses● Matters related to executive appointment

Position in Affiliate Company

Tomomi Umeda

Representative Director and President of DAIPLA
Corporation

Hiroyasu Kawakami CEO of Bonset America Corporation
Tetsuo Kaneko

Management Committee

Representative Director and President of
C.I. MATEX CORPORATION

Effectiveness Evaluation of the Board of Directors

The Management Committee is convened once a month as a
general rule to deliberate and determine important matters related

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

to business execution with the Chairman, President, and Chief Op-

of Directors every year and strives to address challenges discovered

erating Officers as core members. Furthermore, the Management

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

Committee reviews matters requiring prior approval from among the

The effectiveness evaluation conducted in FY2019 is shown below.

items that should be deliberated by the Board of Directors to assist in
functions of the Board of Directors and accelerate decision making.

Evaluation Method
Step 1 Conduct survey for self-assessment by directors andAudit & Supervisory Board Members (Audit & Supervisory Board)

Audit & Supervisory Board Members

For strengthening the supervisory system and improving diversity,● Survey implemented and results data collected by an

two independent outside Audit & Supervisory Board Members (in-external bodycluding one female) were appointed during the June 2020 General

Gather candid feedback by ensuring anonymity

Shareholdersʼ Meeting, increasing the ratio of independent outside

Conduct objective analysis through results aggregation

Audit & Supervisory Board Members to 50%.

that includes comparisons with data of competitors

The Audit & Supervisory Board Members attend Board of Directors● Main survey items

meetings, the Management Committee, and other important meet-

Composition and operation of the Board of Directors

ings according to the auditing criteria for auditors in an effort to un-

Support system and training for directors and Audit &derstand the vital decision-making process and progress of businessSupervisory Board Members

execution by hearing the progress of business execution from Di-

Initiatives and system for dialogue with shareholders

rectors and other officers and browsing relevant materials. Further-(investors)

more, the members regularly meet with the Representative Director

Effectiveness of the Nomination and Remuneration

President to brainstorm about the progress of business execution.

Committee
Step 2 Opinion Exchange with Directors and Audit & Super-

Ratio of Independent Outside Audit & Supervisory Board Members

visory Board Members● Conduct

50(2)

Audit &
Supervisory Board
Members%

opinion exchange based on the analysis ofsurvey results
Step 3 Evaluation at the Board of Directors

4● Confirm points that were improved and extract futurepriority issues based on survey results analysis and con-

(3 males,1 female)tent of the opinion exchange with Directors and Audit& Supervisory Board Members

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C.I. TAKIRON Group Integrated Report 2020

GovernanceCalculation Methods for Each Type of Remuneration

Evaluation Results● Fixed Remuneration

1. Improved Items
For improving dialogue with shareholders (investors)
and establishing systems for better communications
with them, we established a new department specializing in IR and strengthened our IR activities in April 2019.
2. Evaluation Results and Future Initiatives
As a result of the evaluation, generally positive evaluations were obtained, such as how to nominate
officers, design of compensation system for management, and efforts to deal with and reduce compliancecases, and the board of directors as a whole functions
appropriately and is effective.
Moving forward, we will recognize the following three
items as priorities and work to further improve the effectiveness of the Board of Directors.
(1) Further strengthening of IR activities(2) Expansion of discussions on medium- to long-term
plans(3) Strengthening of the system to improve governance

Pays an amount according to factors which is calculated andpaid as a monthly compensation.
● Performance-linked Remuneration (Bonuses)

Pays an amount calculated by reflecting the consolidated returnfor the term as well as a qualitative and quantitative assessment ofeach executive officer once per year.
Index

Current Net Income Attributable to the Owners of Parent

Reason for
Selection of
Aforementioned Index

For reflecting contribution to business performance inbonuses

Calculation
MethodReflect the qualitative and quantitative evaluation ofeach officer in the Standard Bonus AmountStandard Bonus Amount= [Monthly remuneration for each officer (fixed remuneration converted to monthly amount)] ×[Factor according to Current Net Income Attributable to the Owners of Parent]

Bonus amounts are planned by the Director Chairman by reflecting the qualitative and quantitative evaluation of each officer in the

Executive Remuneration

Standard Bonus Amount. The content and processes for determin-

Framework of Executive Remuneration

ing amounts are verified and deliberated by the Nomination andRemuneration for directors (excluding non-executive directors)

Remuneration Committee, and the Board of Directors decides onand executive officers is made up of fixed remuneration, bonuses

amounts after receiving the report.

as performance-linked remuneration, and a stock remuneration● Stock Remuneration

plan that assigns shares according to position.

Points are assigned at the end of each business year according

This plan clarifies the relationship between director remuneration

to officer position in accordance with regulations on issuing shares.

and the stock price of C.I. TAKIRON to share the benefit and risk of

C.I. TAKIRON assigns one share of company stock for each point.

fluctuations in the stock price with both directors and shareholders for

These shares are issued upon the retirement of executive officers

the purpose of raising awareness that contributes to improvements

as a general rule.

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

History of Enhancements to Corporate Governance

The policy for the payment ratio of performance-linked remuneration (bonuses) and remuneration other than performance-linked
remuneration (fixed remuneration/stock remuneration) sets anobjective ratio of 25% for performance-linked remuneration and
75% for remuneration other than performance-linked remuneration. Furthermore, non-executive officers and Audit & Supervisory Board Members only receive fixed remuneration. Furthermore,
non-executive officers and Audit & Supervisory Board Members

2000

Introduction of an executive officer system
Amendment to the number of directors in the Articles of Incorporation (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

Strengthened Systems for Dialogue with Shareholders (Investors)(established a new department specializing in IR)

2020

Increased the number of independent outside directors (from 2 to
3, comprising more than 1/3 of the Board of Directors)
Increases number of independent outside Audit & Supervisory
Board Members (from 0 to 2, comprising 50% of the Audit &Supervisory Board Members)
Diversification of the Board of Directors and Audit & Supervisory
Board Members(Appointed one female director and one female Audit & Supervisory Board Member)
Introduction of the Group Executive Officer System

only receive fixed remuneration.

Payment Ratio of Remuneration
Performance-linked Remuneration other than performance-linked remuneration
remuneration(fixed remuneration/stock remuneration)(bonuses)

25%

75%

73

C.I. TAKIRON Group Integrated Report 2020

GovernanceCompliance Risk Management

The C.I. TAKIRON Group is firmly maintaining and strengthening corporate compliance systems, and promoting the
optimal operation of risk management systems to provide sound 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 activ-

C.I. TAKIRON
Board of Directors

ities. Our Group complies thoroughly with the relevant laws andregulations as well as with the articles of incorporation for each

Chief Compliance Officer
President of C.I. Takiron

company in addition to defining the C.I. TAKIRON Group Corporate Code of Conduct for the purpose of taking action deemedCompliance Committee

suitable by social ethics.
Also, C.I. TAKIRON Group Compliance Program has been completely revised for the purposes of improving and strengthening

Compliance Subcommittees

the compliance system for following the C.I. TAKIRON Group Corporate Code of Conduct. It defines the following four points as a

Person in Charge of
C.I. TAKIRON Compliancebasic policy.

Main Activity Results for FY2019■Basic Policy

Results

1. Create a sound organizational culture and climate
Preparation ofsystems andframeworks

2. Establish and maintain a proper system
3. Maintain a high level of awareness about compliance4. Fair and impartial compliance

Attorneys at Law(External)

pliance Program● Establishment and dissemination of harassment con-sultation service manual

the issue of workplace-based harassment throughout Japan● Held compliance seminars for affiliated companies
Education/● Provided education about compliance cases that ocEnlightenment
curred within the Group● Provided compliance information through our inhouse bulletin● Distribute the Compliance Handbook to all employees to raise compliance awarenessC.I. TAKIRON and Domestic Affiliate Companies

Audit &
Supervisory Board
Members● Complete revision of the C.I. TAKIRON Group Com-

● Held compliance seminars and seminars addressing

Internal Reporting System (Hotline)

Chief Operating
Officer of theLegal ComplianceDepartment

Persons in Charge of Compliance
at Affiliated Companies

Business
Operating the
Hotline Service(External)

Overseas Base
Surveys● Conductedlabor assessment of Chinese affiliatedcompanies through a local legal firm

Violations of laws and regulations in the socio-economic sector

Overseas Affiliate Companies

There are no such violations in FY2019.
Chief Operating Officer ofthe Legal ComplianceDepartment

Business Operating the
Hotline Service(External)

Violations of environmental laws and regulations
There are no such violations in FY2019.

74

C.I. TAKIRON Group Integrated Report 2020

GovernanceRisk Management
Risk Management System

Selection and Handling Process of Critical Risks
1. Surveys for risk managers (generally once every three years)

We have put in place a risk management system and formulated Risk Management Regulations for the purpose of reducing andAssess the level of impact and likelihood based on a common list

preventing losses as well as enhancing corporate value through theof risks created by the risk management secretariat according toorganizational management of risk throughout the Group.

the social landscape and risk examples.
2. Analysis/evaluation

The Corporate Planning Department acts as the risk management secretariat and operates the risk management process eachCollect and analyze survey results and other information aboutfiscal year by placing a risk manager at C.I. TAKIRON as well as

risk via the risk management secretariat and select critical risk can-each affiliate company.

didates.
3. Identification of critical risks

Occupation

Person in charge

Person responsible for risk
management

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

Departments
supervising risk
assessment

Identify critical risks (corporate risks or operational risks) at management workshops made up of C.I. TAKIRON executive officers.
4. Formulation/approval of measures against risks

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

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 Committee.
5. Execution of measures against risks
Departments supervising the handling of risk handle risks based

Risk management C.I. TAKIRON Corporate Planning Department
secretariat
Departments
supervising thehandling of riskon the measures against risks. For corporate risks, departments su-

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

pervising risk assessment monitor the progress of those measuresagainst risks.
6. Review of the results from measures against risks

Risk Management Operations

The risk management secretariat reports to the C.I. TAKIRONManagement Committee based on the results of the measures

C.I. TAKIRON has a system to address the intrinsic risks of theagainst risks for the current fiscal year.

Group through ongoing reduction efforts in accordance with therisk management regulations. The Management Committee determines measures against risk through risk identification and evaluation results for the entire Group. The risk management secretariat
operates risk management each fiscal year based on the selection
and handling processes for critical risks defined below.

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

Conduct Risk Surveys

Analyze/
Evaluate Risk

Identify Critical
Risks

Review

Determine Measures
Against Risks

Gain Management
Approval

Execute Measures
Against Risks

Report toManagement

FY2020 Selection of Critical Risk Management Items
Risk Management
Items

Risk Category

Supervising
Department

Risk Items

Assessment
Department

Mass Infection/
Pandemic

Corporate

Corporate Planning
Department

1. Risk of inconsistencies in mass infection/pandemic responsemanuals and insufficient awareness2. Risk of plant production activity stoppages
3. Legal risk faced by the company

Human Resource
Department

Climate change

Corporate

Corporate Planning
Department

1. Risk stemming from inadequately analyzing how much of aneffect climate change will have on the Group
2. Business continuity risk due to the effects of climate change
3. Risk to company reputation due to level of environmental andbiodiversity response

Meeting toPromoteEnvironmental
Conservation

IT Security(Continued from theprevious fiscal year)

Operational

Business Support
Department

1. Risks of informational leaks
2. Risks of suspended operations due to system stoppages
3. Risks of a decrease in credit−

Compliance andHuman Rights

Operational

Legal ComplianceDepartment

1. Risk of compliance violations
2. Risk of human rights and harassment related issues
3. Human rights and harassment related legal risk−

75

C.I. TAKIRON Group Integrated Report 2020

GovernanceDirectors, Audit & Supervisory Board Members,
and Executive Officers (As of June 25, 2020)
Directors(biographical information reduced)

Director Chairman Yosuke Minamitani

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

1974 Joined ITOCHU Corporation
2008 Representative Director and Vice Presidentof TAKIRON
2020 Director Chairman 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 in 2013 and currently serves as Chief
Operating Officer of the Production Division after serving as Chief Operating Officer of the Construction Materials Division and Chief Operating Officer of the
Corporate Planning Division. C.I. TAKIRON nominated Takahisa Miyake because
it can expect him to continue to execute the decision making and supervision ofmanagement based on his wealth of experience and expertise in management,
business, and various fields in production.

Reasons for nomination C.I. TAKIRON appointed
Yosuke Minamitani as the Representative Director and Vice President in 2008,
Representative Director and President in 2017, and Director Chairman in April
2020 after serving as Representative Director Chairman & CEO in 2019 based on
his many years of service to the ITOCHU Corporation in the chemicals department
as well as in managements. Yosuke Minamitani currently acts as Chairman toexpand business and promote greater profitability while driving the realizationof sustained and enhanced corporate value throughout the entire Group. C.I.
TAKIRON nominated Yosuke Minamitani because it can expect him to continue to
execute the decision making and supervision of management based on his wealthof experience and high-level of expertise.

Director*1 Mune Iwamoto
1976 Joined Mitsui Toatsu Chemicals (current
Mitsui Chemicals)2014 Director of TAKIRON (current position)2016 Outside Director of Toyo Tanso (current
position)

Representative Director President Kazuya Saito
1981 Joined ITOCHU Corporation2014 Executive Officer of TAKIRON
2020 Representative Director President of C.I.
TAKIRON (current position)

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, andmultiple posts in management at companies. He has actively provided guidancefrom an independent standpoint since his appointment as outside Director of thecompany in 2014, and it expects him to continue to execute the proper decision
making and supervision of management.

Reasons for nomination C.I. TAKIRON appointed
Kazuya Saito as the Representative Director President inApril 2020 after serving as the Representative Director President & COO in 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 the Environmental Materials Business in 2015. C.I. TAKIRON nominated Kazuya Saito because
it can expect him to further the expansion of business and greater profitability as
the highest authority in management business execution currently and for his
continued execution of decision making and supervision of management basedon his wealth of experience and expertise in overall business, including the overseas fields of the company.

Director*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 toutilize his wealth of experience and expertise cultivatedthrough 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 the company expects him to continue to
execute the proper decision making and supervision of management as an outside Director of the company.

Director Senior Managing Executive Officer Takahisa Miyake
Chief Operating Officer of the Environmental Materials Div.
1984 Joined TAKIRON
2017 Director Senior 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 after working as the General Manager ofthe purchasing, flooring and corporate planning departments. He has been serving as the Chief Operating Officer of the Environmental Materials Division since2019. C.I. TAKIRON nominated Takahisa Miyake because it can expect him to continue to execute the decision making and supervision of management based on
his wealth of experience and expertise in management and the overall business
operations of the company.

Director*1 Yoshiko Kosaka
2003 Became registered attorney
2016 Joined Irokawa Law Office (current Irokawa
Legal Professional Corporation) (current
position)2020 Director of C.I. TAKIRON (current position)
Reasons for nomination C.I. TAKIRON appointed Yoshiko Kosaka because of her high level of expertise as an attorney and wealthof knowledge related to corporate law, and expects her to execute the proper
decision making and supervision of management as an Outside Director of thecompany. Although Ms. Kosaka has not been directly involved in company management in the past, we believe that she will be able to properly carry out her
duties as an Outside Director for the reasons stated above.

Director Senior Managing Executive Officer Akihiro Ueda
Chief Operating Officer of the Construction Materials Div.
1982 Joined ITOCHU Corporation
2019 Director Senior Managing Executive Officer
of C.I. TAKIRON (current position)
Reasons for nomination Akihiro Ueda was appointed Managing Executive Officer of C.I. TAKIRON in 2015,
and Direct Senior Managing Executive Officer in April 2019 and in the same year
started serving as Chief Operating Officer of the Construction Materials Div. 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 the decision making and supervision of management based on
his wealth of experience and expertise in the chemical products field, including
management experience at multiple overseas companies.

*1 Outside Director

76

C.I. TAKIRON Group Integrated Report 2020

Governance

Audit & Supervisory Board Members
Audit & Supervisory Board Member

Audit & Supervisory Board Member*2

Toshiro Okajima

Masako Osuna

1988 Joined TAKIRON
2020 Audit & Supervisory Board Member of C.I.
TAKIRON (current position)

1979 Joined JETRO (Japan External Trade Organization)2014 Professor, Kanazawa Institute of Technology(current position)2015 Director (Outside), Audit and Supervisory
Committee Member of The HOKKOKU Bank (current position)
2019 Outside Director of Hibiya Engineering, Ltd. (current position)2020 Audit & Supervisory Board Member of C.I. TAKIRON (current position)

Reasons for nomination After serving as Head of theEquipment Technology Department, General Manager of
the Ibogawa Plant, and General Manager of the Aboshi Plant, C.I. TAKIRON appointed Toshiro Okajima as an Exective Officer in 2015. He also served as Deputy
Chief Operating Officer of the Production Division starting in 2017. Since he possesses a wealth of experience and knowledge in business and general production,
the company expects him to expects him to provide the suitable advice and checks
to ensure the appropriateness of decisions made by the Board of Directors

Reasons for nomination Ms. Osuna has been working for the Japan External
Trade Organization (JETRO) for many years and is currently a professor, Kanazawa
Institute of Technology. Since she possesses a wealth of experience and knowledge and high level of expertise centered on the international economy, the company expects her to provide the suitable advice and checks to ensure the appropriateness of decisions made by the Board of Directors. Although Ms. Osuna has
not been directly involved in company management in a capacity other than anoutside officer, we believe that she will be able to properly carry out her duties as
an Outside Director for the reasons stated above.

Audit & Supervisory Board Member

Kenji Takai
1990 Joined ITOCHU Corporation
2019 Audit & Supervisory Board Member of ITOCHU ENEX (current position)
2019 Audit & Supervisory Board Member of C.I.
TAKIRON (current position)

Audit & Supervisory Board Member*2

Takashi Araki
1997 Became Certified Public Accountant
2013 Head of Takashi Araki Accounting Office(current position)2014 Corporate Auditor (Outside) of Nippon Ski Resort Development, Co., Ltd. (current position)
Representative Director of Transaction Support Co., Ltd.
2015 Became licensed tax accountant
Head of Takashi Araki Tax Accounting Office (current position)2020 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 finance departments over his many years at the company. 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 his practical experience and knowledge in corporate management at ITOCHU Energy & Chemicals
Company based on his expert knowledge in the accounting and finance fields.

*2 Outside Audit & Supervisory Board Member

Reasons for nomination For many years, Takashi Araki has been engaged
in auditing work, initial public offering support work, financial and accounting
consulting work at an audit corporation, and also established a financial advisory
company, and focused on activities centering on due diligence, stock valuation/business valuation, M&A advisory functions, and corporate revitalization support.
Since he possesses a wealth of experience and knowledge and high level of expertise related to finance and accounting as a certified public accountant and tax
accountant, the company expects him to provide the suitable advice and checks
to ensure the appropriateness of decisions made by the Board of Directors.

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

Toshio Tamaki

Executive Officer
General Manager of the Infrastructure Material
Dept.

Takashi Harada

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

Yukihiro Iwata

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

Kenji Matsui

Executive Officer
Chief Operating Officer of the Corporate
Planning Div.

Hironori Kikuchi

Executive Officer
Deputy Chief Operating Officer of the Production
Div.

Kenji Watanabe

Executive Officer
Chief Operating Officer of the Specialty Films Div.

Hidehiro Shima

Executive Officer
General Manager of the Yasutomi Plant

Yukio Hiraiwa

Executive Officer
General Manager of the Housing Materials Dept.

Hiroji Kimura

Ryojiro Ogawa

Executive Officer
General Manager of the Finance & Accounting Dept.

Toshiya Okubo

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

Executive Officer
General Manager of the Business Support Dept.

Akihiko Shiraishi

Tsutoshi Miki

Executive Officer
General Manager of the R&D Dept.

77

C.I. TAKIRON Group Integrated Report 2020

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

Unit: Millions of Yen
FY2015*1

FY2016*1

FY2017FY2018FY2019Management Performance
Net Sales

72,95875,118147,805

150,650

139,432

Operating Profit

3,793

4,339

8,363

9,080

7,372

Ordinary Profit

3,946

4,519

8,204

9,200

7,611

Current Net Income Attributable
to the Owners of Parent

2,746

2,695

6,579

6,391

13,091

Depreciation

3,090

3,201

4,896

4,533

4,682

Capital Investment

3,486

2,609

3,969

7,430

12,388

841

686

1,288

1,109

1,165

Total Assets

88,08788,997141,116

138,251

144,956

Net Assets

46,46149,43569,90974,31082,840Equity Capital

45,75548,67868,332

72,68081,362

Interest-bearing Liabilities

2,696

2,031

11,729

4,911

5,085

Accumulated Surplus

21,48923,19022,031

26,571

36,738Cash Flow from Business Activities

5,773

6,579

9,328

9,805

11,017

Cash Flow from Investment Activities△ 2,860△ 2,537△ 1,575△ 9,620△ 5,922

Cash Flow from Financial Activities△ 2,828△ 1,749△ 9,160△ 9,160△ 3,115

Free Cash Flow

2,912

4,042

7,752

184

5,095

Balance of Cash and Cash Equivalents (End of Term)

13,76016,04615,800

6,835

8,746

78,69878,69897,50097,50097,500

Dividends (Yen)

14

14

18

26

37

Payout Ratio (%)

36.2

36.9

26.7

39.6

27.5

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

38.66

37.95

67.49

65.62

134.47

Net Assets (Yen)644.22685.44700.99746.42835.82

Research & Development Expenses
Financial Status

Cash Flow

Stock Information
Total Number of Issued Shares(Thousand Shares)

Information about One Share ofCompany Stock78

C.I. TAKIRON Group Integrated Report 2020

FY2015*1

FY2016*1

FY2017FY2018FY2019Management Index
ROA (％)

3.2

3.0

4.7

4.6

9.2

ROIC (%)

5.1

5.7

7.3

8.1

16.0

ROE (%)

5.9

5.7

9.6

8.8

17.0

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

0.05

0.04

0.17

0.07

0.06

Operating Profit on Sales (%)

5.2

5.8

5.7

6.0

5.3

Capital-to-Asset Ratio (%)

51.9

54.7

48.4

52.6

56.1

Overseas Net Sales Ratio (%)

4.4

4.5

15.9

15.5

15.8

FY2016*1

FY2017

Non-financial Data
FY2015*1

FY2018FY2019Social Indicators
Number of Consolidated Employees (Persons)

1,871

1,889

3,369

3,412

3,369

New Female Graduate Employment Ratio (%)*2

25

27

33.3

28.6

54.5

Acquisition Rate of Childcare Leave for Male
Employees (%)*2

0.0

5.0

0.0

31.0

90.6

Rate of Paid Leave Taken by Employees (%)*2

57.7

61.3

55.4

62.4

91.2

Energy Consumption Rate
(GJ/Manufacturing Ton)

12.5

12.8

13.1

13.0

12.2

Unit CO2 Emissions (t-CO2/Manufacturing Ton)

0.69

0.71

0.67

0.63

0.55

Total Waste Emissions (t)10,693

12,034

13,42813,083

13,210

Water Consumption (Thousand m3)

1,091

1,114

1,174

1,176

1,053

813

851

897

1,004

809

Environmental Index

Waste Water (thousand m3)*1 Former Takiron Group*2 Non-consolidated data for C.I. TAKIRON (former Takiron Group non-consolidated data used for FY2015 and FY2016)79

C.I. TAKIRON Group Integrated Report 2020

Corporate Profile and Stock Information (As of March 31, 2020)
Corporate Profile

Major Shareholders (Top 10)

Trade Name

C.I. TAKIRON Corporation

Established

October 10, 1919

Incorporated

December 20, 1935

Head Office
Address

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

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

Capital¥15,189 million

Number of
Employees(Consolidated)

3,369

ITOCHU Corporation

51.15

Japan Trustee Services Bank, Ltd. (trust fund)

3.19

C.I. Takiron Kyowa-Kai

3.12

The Master Trust Bank of Japan, Ltd. (trust fund)2.83

Sekisui Jushi Corporation

1.48

Nippon Life Insurance Company

1.42

Kaneka Corporation

1.35

GOVERNMENT OF NORWAY

1.28

DFA INTL SMALL CAP VALUE PORTFOLIO

1.15

Tosoh Corporation

1.10

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

Stock Information
Securities Code4215

Total Numberof Issued Shares

97,500,000

Treasury Stock

Number of
Shareholders

7,230

Securities Firms

Stock listingFirst Section ofTokyo Stock Exchange

Share Unit
Administratorof Shareholder
Registry
Accounting
Auditor

Ratio of Share
Holding (%)

Name of Shareholder

0.02％

Other JapaneseCorporations

60.91％

0.44％

Foreign Persons

8.82％

100
Sumitomo Mitsui Trust Bank,
Limited

Deloitte Touche Tohmatsu LLC

Individuals andOther Shareholders

14.03％

Distribution of Sharesby Shareholder

Financial Institutions

15.78％

Main Affiliations (As of May 31, 2020)
InteriorFloor Industrial Association

Japan Association of Corporate Executives

JAPAN PLASTIC SHEET ASSOCIATION

Kansai Chemical Industry Association

JA Packaging & Horticulture Materials Association

Hard Vinyl Chloride Sheet Committee

Kansai Economic Federation

Japan Vinyl Goods Manufacturerʼs Association

Polycarbonate Sheet Committee

CLOMA*The Japan Plastics Industry FederationNOUGYOUYOUFILM RECYCLEACCELERATION COUNCIL* CLOMA: Japan Clean Ocean Material Alliance80

C.I. TAKIRON Group Integrated Report 2020

List of C.I. TAKIRON Business Establishments
Head Office■ Head Office■ Tokyo Head Office3-1-3 Umeda, Kita-ku, Osaka
2-15-1 Konan Minato-ku, Tokyo

Branches/Sales
Offices

ManufacturingBases■ Sapporo
Sales Office

1 Aboshi Plant■ Tohoku Branch

3 Yasutomi Plant■ Tokyo Branch■ Chubu Branch■ Osaka Branch■ Chugoku/
Shikoku Branch■ Kyushu Branch■ Kagoshima
Sales Office

Domestic Manufacturing Bases
and R&D Centers❹❹❼

R&D Centers⓾ R&D Center2 Ibogawa Plant❼

4 Tokyo Plant
5 Shiga Plant❼

6 Tochigi Plant
7 Okayama Plant

⓮

5⓾

7❿

3

❷
2

8 Hiratsuka Plant❶

9 Sano Plant

6
❼
❶
8

❻

4
❶
9

❾
1❽⓬

Business Sites (As of June 30, 2020)
Overseas Manufacturing Bases

❸
⓯

⓫⓭
⓱

❺

⓰

Affiliate Companies
Construction Materials Business

Environmental Materials Business High Functional Materials Business❶ SANWA SIGNWORKS CO., LTD.

❹ HOKKAIDO SANPLUS CO., LTD.

● TAKIRON KC HOME IMPROVEMENT CO., LTD.

● YOKOBI CO., LTD.

❷ NIPPON POLYESTER CO., LTD.

● C.I. MATEX CORPORATION❸ BONLEX EUROPE S.R.L.
[Italy]● TAKIRON MATEX CO., LTD.

❽ TAKIRON-ROWLAND LIMITED❾ TAKIRON POLYMER CO., LTD.
❿ CIK NANOTEK CORPORATION● C.I. AGRO CO., LTD.
● SHANGHAI C.I. KASEI TRADINGCOMPANY LTD. [China]❺ PT. TAKIRON INDONESIA [Indonesia]⓫ TAKIRON PLASTICS (CHANGZHOU) CO., LTD. [China]⓬ TAKIRON TECH CO., LTD.

⓭ SHANGHAI CIK ELECTRONICS
CO., LTD. [China]

Specialty Films Business⓮ BONPACK CO., LTD.

⓯ BONSET AMERICA CORPORATION [United States]⓰ BONSET LATIN AMERICA S.A.
[Uruguay]⓱ SHANGHAI SANPLUS PLASTIC
CO., LTD. [China]
Other Affiliate Companies❻ DAILITE CO., LTD.

● C.I. TAKIRON LOGISTICS CO., LTD.

❼ DAIPLA CORPORATION● TAKIRON ENGINEERING CO., LTD.

81

● DAIPLA WINTES CO., LTD.

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