CCI Sustainability Report 2023

President’s Message

Overview of the CCI Group

Value Creation Story

Sustainability Initiatives

ESG Activity Report

President’sMessage

We aim to be a company that is appreciatedby customers, local communities and thepublic as well as our employees,

by continually reexamining our purpose andproviding new corporate value to the next
generation.

Building on our strengths of high-level quality management,
providing safety and peace of mind,
and a unique approach to manufacturing

Tetsuya Okabe
President and CEOI would like to start by describing some special aspects of CCI’s business and theenvironment in which we operate. Over the years, in our work with leading
automotive manufacturers, we have grown as a company by embracing high-level
quality management, providing safety and peace of mind and developing a uniqueapproach to manufacturing. We have also achieved excellence in our work withresidential construction companies through our commitment to providing a
comfortable living environment. By establishing solid sales channels with thesecompanies, we have the additional opportunity to provide car care supplies throughthese channels when supplying coolant and brake fluid to automotive manufacturers,
maximizing efficiency. In addition to the high-level quality management of ourproducts, we also excel in our ability to keep costs down and implement
improvements. In making effective use of these strengths, we have instilled acustomer-focused approach in all our operations, ensuring that our customers see
the value we provide, while adopting a products-first stance to develop our business.
Our current business environment is in the midst of a once-in-a-century
transformation of the automotive sector. With the arrival of the CASE* era, we are
now required to take steps in a new direction. From an early stage, we haveworked to respond to the widespread adoption of electric vehicles (EV). Even as*CASE: Connected, Automated/Autonomous, Shared, and Electric03

CCI Sustainability Report 2023

engines continue transitioning from gasoline-powered vehicles to EV, CCI’s
coolant will continue to be in demand. Despite changes in certain characteristics,
we will continue to supply coolant to automotive manufacturers. In addition, weare striving to expand our business opportunities; exploring those with otherindustry sectors involved with EVs as well as introducing to local Japanesefacilities the technology cultivated through our work with European and North
American manufacturers leading the way in EV development.
Currently, due to the worldwide impact of environmental issues, there are calls toobtain two of our most important raw materials from bio-based sources rather thanthose that are fossil fuel-derived. We see this as an opportunity for us. CCI isworking to utilize this opportunity as speedily as possible, exploring the potential ofbio-based raw materials and recycling at an early stage. Swiftness of action isimportant, as this will create a competitive edge. It is vital to keep in mind what cangive us an advantage, striving to see how value may be added through quality andcost-competitiveness. By implementing initiatives that enable us to take the lead,
we can enhance corporate value and foster the growth of our employees. It is mysincere hope that we can develop a corporate culture that will impart this approachto the next generation.

Clarifying our goals, and implementing sustainable
management with an emphasis on speed
To realize our vision for society (in 2050), we are vigorously promoting ESG-focusedmanagement. In FY 2022, the Sustainability Promotion Committee, comprised ofthe Investment, Compliance and Risk and Information Security Committees, madesignificant strides in implementing initiatives based on KPIs* related to theenvironment and human rights. KPIs are established for each business division anddepartment and also for individual employees. By clarifying objectives, we have seta framework that enables each individual to perform self-assessments. Recognizing
the need for speed in this initiative too, I believe that a thorough-going effort toswiftly complete tasks will lead to enhanced corporate value; this is a reasoning thatmust be communicated to all involved, both within and outside the company.
Sustainability is another source of corporate value. I feel that the young employeesof CCI are strongly aware of this, and that the concept has been made known
throughout the company.
On the environmental side, we are implementing initiatives based on our CO2
reduction project, taking steps to address each pertinent issue. In addition toreducing waste and exploring alternative raw materials, we are also working toimprove our yield rate. We have established a framework to become carbon neutral
by reducing CO2 emissions in our technology, R&D and manufacturing processes.
We are also making steady progress transitioning to the circular economy throughsuch steps as recovering and recycling PET shrink wrap film. Furthermore, we areworking to develop environmentally friendly, sustainable products such as thoseused in battery electric (BEV) and fuel cell (FCV) vehicles, as well as energy-saving,long-life urethane coating materials.
In our contributions to the local community and to the public, we sponsor theprofessional soccer team FC Gifu, as well as local 11-and-under soccer teams. We
currently provide research funding to Nagoya and Gifu Universities. We also

President’s Message

Overview of the CCI Group

Value Creation Story

Sustainability Initiatives

ESG Activity Reportpromote motorsports through our support of TOYOTA GAZOO Racing.
In promoting digital transformation (DX), we have started overhauling our core
ERP system with the aim of standardizing production process management
throughout the CCI Group. By adopting unified standards in our operations
throughout the world, we aim to realize product manufacturing defined by thesame high quality anywhere, at any time. In addition to this, we are also rolling out
robotic process automation (RPA) at our business sites abroad; this is a techniquethat has achieved impressive results in Japan. Our plan is to actively create anenvironment in which employees can focus on high-value work.
Finally, in strengthening governance, we strive to promote awareness byperform compliance training for all employees on a monthly basis and take steps toprevent any misconduct. With regard to risk management, we are currently
proceeding with the step-by-step implementation of information security strategies
based on guidelines compiled by industry associations. In response to the increased
frequency of cyber-attacks in recent years, we are working to strengthen information
security throughout the CCI Group.

Through our project for exploring our corporate philosophy,
we are reviewing our corporate philosophy and helping to growthe next generation of recruits
In FY 2022, CCI launched the project for exploring our corporate philosophy toofficially review our corporate philosophy and formulate a new code of conduct.
This project is intended to explore the meaning of corporate value and to define
our company’s purpose. In this era of socioeconomic change and varying forms ofbusiness, we strive to identify the unchanging significance of our company’spresence. Rather than using a top-down approach, this initiative involves
appointing employees, ranging in age from the late twenties to early forties, toplay a central role in reconstructing our corporate philosophy which comprises thecompany’s roots. Their task will be to identify and to record everything that
constitutes new value within the company and to become advocates of ourmission over the next 30 to 50 years. Through this project, we aim to explore
social, corporate and organizational topics and problems while growing as acompany in which each individual can take action towards a solution throughshared values, supporting the future of CCI together.
Personally, I was very interested in hearing the views of next-generationemployees. CCI had previously tended towards a “top-down” approach that
seemed to prevent individual employees from expressing their own views. I wanted
these young people to understand that they would be the ones leading thecompany’s development in the future. It was my hope that they would takeadvantage of this opportunity to voice their thoughts and to learn from ourcompany’s past, thus going on to impart their knowledge to a whole newgeneration in five to ten years’ time as true advocates of our mission. The focus is tothink carefully about what must be accomplished, what one desires to achieve, andwhat the objectives are, and then to work towards those goals. Since launching thisproject, I have felt strongly that the team members are demonstrating personal
growth. They have begun to think critically about strategic matters and have cometo understand business from a managerial perspective. Another important point liesin whether or not one’s plans can be implemented. This too must be communicatedto the next generation. We are planning to launch a new project to explore this.

Working together with the new generation to realize sustainable
development for the company
From my perspective, it does not bother me if the points established in this project
for exploring our corporate philosophy change in the future. No matter how hard
you strive, you will never get things 100% right. Deciding on a philosophy wasnever the real objective. When the goals are made clear, we can focus on the mostimportant aim of supporting the company’s sustainable development. By continuing
this initiative, I believe that we can grow as a company: one in which employees
and their family members can feel pride and which is appreciated by the local
community and by the public. It is my hope that we can demonstrate our resolve toour stakeholders through action and earn their confidence and trust.

Tetsuya Okabe
President and CEO*KPI: Key Performance Indicators04