CCI Sustainability Report 2023

President’s Message

Overview of the CCI Group

Value Creation Story

Sustainability Initiatives

ESG Activity Report

Value Creation Story

History of Value Creation by CCISales in Japan

Since its founding in 1949 as a manufacturer of brake oil, CCI has expanded into a wide range of businessfields and has successfully transformed itself in various ways.
We will continue to provide safety, comfort, and peace of mind, as we embark on the next stage in our journey.

NEXTSTAGE

Overseas sales

Expandinginto overseas
markets

Industrial tires
Automotive
chemicals1970Car care supplies
19771949

1949

1980

1970

Expanding into the rubber business(now the industrial tire business)
In cultivating businesses that will support furthergrowth, we developed a new segment of industrial
urethane rubber wheels.

Residential
construction
materials
1992

1980-1990

2000-

Expanding into overseas markets

Strengthening the global supply system

Determined to take advantage of the access to world-class technology and the foresight into thefuture, we established a local subsidiary in the U.S. to further develop our market. Subsequently,
local subsidiaries (or branch offices) were established in Taiwan, the UK and Thailand.

To further expand our supply system throughout the world,
we established local subsidiaries in China (5 locations), Mexico, Brazil and Germany
as well as a joint venture company in Malaysia.

December, 1980
A local subsidiary was establishedin the USMay, 2005
A local subsidiary was establishedin Foshan, Guangdong Province, ChinaMay, 1949

Chuo Chemical Industries Corporation
was establishedFounding of the company
as a brake oil manufacturer
Inspired by a desire to put an end to tragic roadaccidents, we began development of brake oilproducts, demonstrating a spirit ofresolute determination.

1977

Expanding into
the car care supplies businessIn an era of widespread car ownership, wehave expanded into the car care supplies
business (now part of our Automotive
Chemicals Division) for everyday drivers byutilizing our carefully-developed chemical
blending technology.

September, 1981
A local subsidiary was establishedin Taiwan

1992

Expanding into the vibration
damping business (now the residential
construction materials business)

July, 2017
A local subsidiary was establishedin Germany

2007-

Developing environmentally friendly products
Using the technology that we have cultivated over the years,
we develop and market environmentally friendly products.

Using the vibration damping, sound absorption andsoundproof insulation technology developed in our
automotive chemicals business, we have expanded into
the business of creating safe and comfortable homes.

2007
Having acquired Shimoda-Ecotech Co., Ltd.
as a subsidiary, we began the design,
manufacturing and marketing of grease
traps (fat and oil blockers)

2018
We developed and began marketing Oil
Vanish, a fat and oil-degrading microbial agent07CCI Sustainability Report 2023

President’s Message

Overview of the CCI Group

Value Creation Story

Sustainability Initiatives

ESG Activity Report

Value Creation Story

Value Creation Process

Through the effective use of our technological achievements, we will continue to create new value in our products that will enable people to lead richer, more fulfilling lives.

InputsExternal environment· Transformation of the mobility sector· Climate change· Changing the business environment
through digital transformation (DX)· From selling products to experiential
consumption

Business activities

Outputs

Advancing technological solutions by synergistic approach.
Contributing to society for safety, comfort, and peace of mind.

Our vision for society(in 2050)

Change Create Innovate
Changing through challenges
for a better tomorrow

Realizing richer, more fulfilling lives for people[Society]

Creating ingenious solutions, Innovating through collaboration
driven by customer focus• Providing mobility in anenvironment characterized bysafety, comfort, andpeace of mind

· More diverse customer needs• Creating tranquil living spaces· Trend towards smaller families andpopulation aging

Our approach to social issues

Technology andmanagerial assets*G r o u p ’s S t r e
CCIne
Thgt

hs78 personnel

Production sites in JapanM

8 sites

keart

archreseR&⃝ Making on-site installation more efficient

SalesPlanning

Business process

No. of patents held

212 patents

aovidfaingct

uring

GlosafP ro cbal Supply

e t y,

mu reenteSys

comfort, ane
dpac

Change Create Innovate
Corporate governance,tmrisk management, and compliance⃝ Expanding the use of noise reduction
technology in the mobility sector

Industrial Tires Division⃝ Providing environmentally friendly products- Antibacterial, durable, conductive,noise-reducing, energy-saving- Long product lifespan- Wheel / tire reuse (retreading)

MnuPr* Data correct as of March 31, 2023
No. of technical department researchersand patents held (CCI Corporation)

Switching over to using
non-petroleum-derived rawmaterials⃝ Providing a tranquil residential environment

Overseas business sites

CCI CORPORATION Headquarters
Laboratory⃝ Developing environmentally friendly products

Residential ConstructionMaterials DivisioneofmindR&D Department⃝ Providing environmentally friendlyproducts and services driven by newtechnologies

Corporate Division⃝ Establishing systems and an environmentthat allows you to work anywhere• Enhancing health and qualityof life
[Workplace]• Realizing diverse work styles
Building a recycling-oriented
society for our products⃝ Simplifying car cleaning and maintenancein anticipation of future growth incar-sharing

DESG priority issues (Targets for 2030)

Automotive Chemicals Division⃝ Developing next-generation mobility productsTechnical department researchers

12 sitesin 8 countries

Outcomes

Creating unprecedented value• Generating new products and services

Reducing waste at every stage
from procurement throughon-site construction todemolition

Reducing the amount ofenvironmentally-impactful
substances used

Contributing to a sustainable society
Manufacturing low-carbon
emitting products(Energy management)• Achieving a carbon neutral society • Transitioning to a circular economy

Promoting diverse work styles⃝ Improving employee engagement

08

CCI Sustainability Report 2023

President’s Message

Overview of the CCI Group

Value Creation Story

Sustainability Initiatives

ESG Activity Report

Value Creation Story

Divisional Initiatives

Here, we introduce some of the initiatives adopted by individual divisions and departments to realize sustainable management.

Industrial Tires Division

Automotive Chemicals Division

Managing Director and Division Manager,
Automotive Chemicals Division

Hisayoshi Osawa

Contributing solutions to environmental problems
through innovative product development

Focusing on ESG measures, and providing products
and services that meet contemporary needs

The Automotive Chemicals Division develops products that meet customers’ needs,
utilizing the extensive engine coolant and brake fluid know-how accumulated over
the years as well as a strong R&D system, including the research facilities maintained
abroad. Each product adheres to high quality standards, thanks to a rigorous quality
management system that makes effective use of IT. Today, with growing
environmental awareness and the need to realize carbon neutrality (CN), there isstrong demand for products that utilize new energy sources and technologies. Withthe transition to EVs proceeding rapidly, the division is committed to contributing
solutions to the world’s environmental problems through innovative products. ESG
measures implemented by the division include the development of BEV and FCV
supplies and long-life products that can contribute to a circular economy along withrecycling initiatives. The division is also actively promoting CSR-based procurement.
In addressing the key issue of reducing CO2 emissions, the team is thoroughly
reviewing manufacturing processes and products from the ground up, preparing tocontribute environmentally friendly products to the public.

The Industrial Tires Division boasts outstanding technology in bonding urethane toResidential Construction Materials Division

Executive Officer and Senior General Manager,
Residential Construction Materials DivisionHirokazu Sako

metal cores, an important factor in producing high-quality urethane tires. Withurethane tires being used in an increasingly wide range of environments, therequirements for tire durability have become more stringent. To enhance durability,
CCI has undertaken industry-leading R&D work on urethane bonding. The divisional
strategy formulated by the Industrial Tires Division for FY 2022 emphasizes thepromotion of ESG measures. In addition to initiatives on reducing environmentallyharmful substances, the division is also making steady progress on cutting CO2emissions through improvements in equipment and processes, increasing
productivity. The team is also focused on reducing waste such as paper, packaging
and raw materials, as well as reducing the rate of nonconforming products. In
developing environmentally friendly products and services, we also provide
customers the option to reuse the metal components of tires through urethane
retreading. CCI aims to be a trusted enterprise by providing high-quality products
and services that meet the needs of the times.

Executive Officer and Senior General Manager,
Industrial Tires Division

Hironobu Murase

R&D Department

Delivering environmentally friendly products and services
that provide safety and peace of mind while contributing
to a rich home environment

Building next-generation businesses, developing
environmentally friendly products, and promoting
research on decarbonization

The Residential Construction Materials Division provides soundproof drainage pipes forresidential buildings, offering a quiet, comfortable living environment while improving
on-site efficiency and developing products that reduce costs and save time. Althoughhousing demand in Japan is expected to decrease due to the trend towards smallerfamilies and the aging of the population, we aim to achieve sustained growth bymaintaining high quality standards, providing value-added products and offering
design and processing services. As regards ESG measures, in addition to enhancing
efficiency at our plants and reducing waste, we are also collaborating with
manufacturers to collect and recycle PET shrink film waste generated during production
to maximize resource circulation. We are steadily making progress on the key issue ofreducing CO2 emissions by enhancing productivity and reorganizing production lines,realizing energy savings. We will continue to establish next-generation businessfoundations while remaining attentive to customers’ needs. Despite the marketing
environment’s unpredictability, we will strive to deliver environmentally friendly, highquality products and services that provide safety and peace of mind.

The R&D Department supports the development of new businesses for the next
generation and the implementation of effective strategies in each segment. In
addition, R&D is undertaking the development of environmentally friendly products
and research on decarbonization as well as the building of bio-based products as areplacement for petrochemical-derived products by 2030. The department also
conducts collaborative research with universities, launching a Research Grant Programin FY 2021 with the goal of aiding young researchers and students. Selecting research
topics from a wide range of fields and providing support for study, we assisted inseven projects at Nagoya University and Gifu University during FY 2022. We haveestablished KPIs directed towards ESG measures as a means for improvement,
managing and reviewing them annually. As R&D expands its investment in researchand builds unprecedented products, we will continue to demonstrate ourcommitment to facing new challenges as well as our passion in fulfilling thephilosophy of “Chemistry is for the world and for all people.”

Director, Technology Management andR&D Department

Michihiro Hori

09