Nittobo Group
Integrated Report 2020

2-4-1, Kojimachi, Chiyoda-ku, Tokyo,102-8489, Japan
Telephone: +81-3-4582-5111
URL: https://www.nittobo.co.jp/eng/index.html

Nittobo Group Integrated Report 2020

C O N T E N T S

MissionCorporate Philosophy
Nittobo Group will, as a corporate group, enhance its significance by striving to create
healthy and comfortable lifestyles, and thereby continue to contribute to the realization ofprosperous communities.

• We will relentlessly strive to identify our customers’
needs and will find great satisfaction in steadfastly
earning their Confidence and Trust. In addition,
we will attach importance to sharing thissatisfaction with all of our stakeholders(communities) through our products and services,
including shareholders, investors, public
administrations and regional communities.

06
08

Non-Financial Highlights

09

Top Message

10

Progress of Mid-term Business Plan

16

Strategy for Research andTechnology Development

20

Feature Article 1: Establishment of NI-CoLabo,a new research site22• We are committed to becoming a corporate group inwhich the potential of our respective, independent
employees is valued and thereby inspires our
employees to freely and willingly share their own ideas,
ultimately achieving greater results through teamwork.
• Our corporate group will provide it’s employees with
an opportunity for progress and self-realization basedon the belief that their progress leads to everyone’s
success. We will encourage our employees to begood citizens, think deeply, observe widely, act
courageously and to approach their jobs with resolveand determination.

Customers
Investors

Shareholders

Clients

employees

04

Financial Highlights

Strategies for
Value Creation• Nittobo Group aims to become the “Best Partner” ofyour community. (Nittobo BP Declaration)

02

Nittobo’s Value Working behind the scenes to support
lifestyles and societyCreation

ValuesNittobo Declaration

History of Value Creation
Value Creation Process

Creditors

Feature Article 2: Glass fiber opens the futurehigh-speed telecommunications 24
26

Glass Fiber Division
Glass Fiber Yarn Business

28

Glass Fiber Cloth Business

30

Glass Fiber for Industrial Materials Business

32Life Science Division

34

Textile Division

38

ESG Initiatives

42

Environmental Initiatives

43

Harmonious Coexistence with Communities

46

Foundation for
Safety Initiatives
Value Creation
Community

PublicAdministration

47

Active Roles of Diverse Talent

48

Corporate Governance

52

Directors and Officers

58

Consolidated Financial Statements

60

Company Profile66

Stock Information

67

Deeply, Widely, Strongly and Hospitably

Proud that

Data Section

customers trust
Nittobo

VisionCorporate Vision
Nittobo delivers the unique products and innovations globally from Fukushima in Japan
based on customer relations and technology.

Editorial Policy
Nittobo Group Integrated Report brings together financial information andnon-financial information including CSR to provide stakeholders with a greater
understanding of the Nittobo Group’s value-creating initiatives for the medium
and long term.

Report Period
This report covers business activities in FY2019(from April 1, 2019 through March 31, 2020).

Scope of Report
This report covers the business activities of Nitto Boseki Co., Ltd. and its
consolidated subsidiaries in Japan and overseas.

Date of Publication
End of October 2020

Forward-looking Statements
The forecasts presented in this report are based on information available to thecompany as of the publication date. Forward-looking statements included in thisreport do not represent promises or guarantees that the company will attain its
forecasts or realize the business measures expressed herein.

Integrated Report 202001

Life Science BusinessHistory of Value Creation

Contributing to preventive medicine, become thesecond business pillar for the Group
Rising health

Rising demand for
healthcare

1983

2012

Launched specialty chemicals PAA™

2018

 cquired International Immunology Corporation,A
the predecessor of Nittobo America Inc.
Started immunological in vitro diagnostic reagent business cquired Kamiya Biomedical, LLC to gain sales networks
Aand know-how for regulatory clearance in the U.S.

1987

2019

1997

E stablished NITTOBOMEDICAL CO., LTD. andits own brand for in vitro
diagnostic reagents

Increase in scale and functionality PCs
of integrated circuits

1984

 lass fiber adopted for use in Tokaido
G
Shinkansen nose cone

1949

Launched T-glass(low thermal expansion)

1969

S tart glass wool
production—first in Japan
Launched
IgG4 measuring reagent kit for use on an
automated analyzer

1986

1964

S ucceeded in industrial production ofglass fiber and started manufacturingrock wool—both firsts in Japan2018

Launched immunological in vitro diagnostic reagents

 cquired Capricorn Products, LLC toA
strengthen procurement of raw materials for invitro diagnostic reagents in the U.S.

Smartphones
Broadband

1998

Launched fine count yarn

1967

MobilephonesInternet

1985

L aunched glass cloth for printed
wiring boardsE stablished Nitto Beverage Co., Ltd.
Entered Beverage Business

4G (LTE)

5G

2006

L aunched NE-glass(low-dielectric)

Launched Flat Fiber

1988

F ukushima glass fiber yarn factory
newly establishedDirect melt furnace No.1 installed tomeet growing glass fiber demand

Strategies for Value Creation

1938

L aunched Osteolinks TRAP-5b, an in vitro diagnostic reagent kit
with genetically modified silkworm technologies

1987

Providing high-performance glass that matches the times,
strengthening the position as a leader in the glass fiber industry
First condominium boom, wave of motorization
Post-warrebuilding demand

Global shift from treatment to prevention

Nittobo’s Value Creation

The Nittobo Group was founded in 1923 in Fukushima
consciousness
1952
1978
Prefecture as a textiles manufacturer. Over theOpened Chemical Fiber Laboratory,
Launched synthetic
decades, we became the first Japanese company tothe roots of the medical business.
substrate for -GTP
The lab later evolved into
industrially produce glass fiber (1938), became the first
Biochemical Laboratory
in Japan to manufacture glass wool (1949), and madeinroads into medical business (1978). In each era, wehave embraced change as opportunity and continuallydeveloped the Company by relishing the challenge tocreate new technologies and priding ourselves on our
pioneer spirit.
Glass Fiber Business2019

 arn manufacturer Nittobo NorplexY
Oak Co., Ltd. established
Predecessor of NITTOBO ASIA
Glass Fiber Co., Ltd. (Taiwan)

 loth manufacturer Baotek Industrial
C
Materials Ltd. (Taiwan) converted into
a consolidated subsidiary

1969
F ukushima No.2 factory
newly established
Plant specializes in production ofglass cloth for printed wiring boards

Textile BusinessContributing to the creation of comfortable lifestyles

 oriyama Kenshi Boseki
KCo., Ltd. established in
Koriyama

Post-warrebuilding demand

1923

Widening choice of fashion
materials

1960

Nitto Boseki Co., Ltd.
established1976

L aunched Nittobo
Dishcloth™

Rising demand for functional materials

1988

Introduced single dotinterlining machines

2004

1965

1918

2015

L aunched SDDC®
interlining that canaccommodate difficultto-adhere materials

Introduced double dotinterlining machines

Nittobo Dishcloth™ won
Good Design Long Life Design Award2018

Launched shirt interlining brand “DANKEEP™”
Started production of dual-structure stretchable
yarn “C·S·Y™”

Fukushima Seiren Seishi Co., Ltd. established in Fukushima

Foundation for Value Creation

1898

Launched “Innovative Fabric™” applying
interlining processing technology

1969

1997

L aunched ladies’ apparelinterlining brand “Dan- Reine™”

 ithdrew from cotton spinningWbusiness at Tomari Factory
Shifted focus to Beverage BusinessNet sales

Net sales of

85.7 billion yen
Construction materials and glass fiber
TextileLife science

Construction materials

Withdrawal fromconstruction
materials business

Glass fiberin FY2019

Data Section* Non-consolidated net sales
for Nittobo until FY1989

1890

1895

1900

1905

External Trends and Events

02

Nittobo Group

1910

1915

1920

1925

1930

1935

1940

1945

1950

1955

 onclusion ofC
Second World War

1960

1965

1970

Tokyo Olympics

1975

1980

1985

1990

1995

2000

World’s first mobile communication services using first-generation (1G) technology
Plaza Accord
Microsoft launches Windows 95

2005

2010

2015

2020

(FY)

Financial Crisis
Great East Japan Earthquake

Integrated Report 202003

Value Creation Process
Corporate
Philosophy

INPUT

Public &Technological
Infrastructure

Manufacturing
capitalOUTPUT

LifeCapital investment

World-leading precision in glass fiber

Leading global share in goat antisera

R&D expenses

Human capital
Workforce

Resource andenergy depletion

2,690

employees

Powerful Value Chain
Glass Fiber

Materials
composition
research

Life Science

Antigen, antibody
development

TextileDyeingprocess

Spinning
process
Antisera

Weaving
process

Interfacetreatment

Social capitalIncrease in global
population
Aging society(as of September 30, 2020)

Consolidated
subsidiaries

04

Nittobo Group

Glass cloths

Energy-efficient housing, recycling

Supplying productsthat reduce
environmental burden

Chopped strands

Waste water treatment

Responsive to Changes inSociety and Customer Needs

Specialty chemicals

 usiness development in tune withBchanging times

e
til
x
Te

s
Bu

Sustainable auxiliary materials
Interlinings

Inner materials

 upporting the shift from treatment
S
to prevention
In vitro diagnostic reagents

Realizing healthy, safe
and secure societies

Safe and reliable beverages
Tea-based beverages

Sports drinks
Data Section

22 companies

Glass cloths

Wind power roduct development tailored toPcustomer needs

HealthInfrastructure repair andreinforcement

Glass wool insulation

Adhesive
process

ssbillion yen

Innovative Fabric™

Chopped strands

in
e

172.8

Fashion and functionality

Creating livable,
convenient and safe
advanced digitalsocieties

L ightweight, energy-efficient
aircraft and automobiles

In vitro diagnostic
reagents

Coating technology
development

Ultra-thin glass cloths

Deodorizing and antibacterial interlinings

Non-woven fabricFinancial capital
Total assets

Smaller, thinner electronic devices
Ultrafine glass yarns

Foundation for Value Creation

Climate change

World’s thinnest adhesive interlinings

s Fiber BusinessGlas

1.7 billion yen
Environment

 pecial Glass made fromS
unique compositions

Intellectual capital

ness
usi

 ging roads,
A
bridges and otherinfrastructure

eB
nc
ie

Only 1
Technologies
No.1

“Smart” societies

Special Glass cloths
Strategies for Value Creation

16.7 billion yen

OUTCOME igh-speed large-volume dataH
communications
Network infrastructure connecting
everythingSc ata-driven socialD
evolutionenhance its significance by striving to create healthy and comfortable
the realization of prosperous communities.
Nittobo’s Value Creation

Social Issues& Change

The Nittobo Group will, as a corporate group,
lifestyles, and thereby continue to contribute toIntegrated Report 202005

Working behind the scenes

Glass fiber for FRP

to support lifestyles and society.

Glass cloth for printed wiringboard (for base station)

Nittobo’s Value Creation

From everyday items to industrial infrastructure,

Glass wool insulation

Nittobo Group’s products are all across town. Helping
to make life more comfortable. Helping to make life

Auxiliary agents for ink-jet printing

Nittobo DishclothTM

safer. Nittobo Group’s products are working every day,quietly supporting our lifestyles and society.

Textile Division

Glass Fiber Division

Life Science Division
Glass cloth for membrane roofs

Strategies for Value Creation

Interlining
Roll screen material(VERRE SCREENTM)

In vitro diagnostic reagents(reagents, antisera)

Glass cloth for membrane roofs
Chopped strands for
smartphone body
Glass cloth for Aircraft reinforcement
interior and fuselage

Glass cloth for printed wiringboard (for network server)

Glass cloth for printed
wiring board

Foundation for Value Creation

Plastic bottle drinks
Glass cloth for printed
wiring boards
Glass fiber for tennis racket
Glass fiber for FRP / FRTP
Glass cloth for damping material

Glass cloth for road reinforcing material

Data Section

Glass cloth for LNG tank reinforcement

Stretch materials for sportswear

06

Nittobo Group

Integrated Report 202007

Financial Highlights (Consolidated)

Non-Financial Highlights

Sales by business segment

Profit/loss by business segment

Sales by geographic region(billion yen)(billion yen)(billion yen)

Other
0.8

Life Science
Business
15.1

TextileBusiness(0.2)

Glass Fiber
Yarn
Business
25.0

Other
(1.0)

Europe2.4

Glass Fiber
Yarn
Business
3.1

Life Science
Business
2.9

Other
0.1

North
America
5.2

Total

Total

8.2 billion yen

85.7 billion yen

Glass Fiberfor Industrial
Materials Business
0.4

Net sales
FY201985.7 billion yen

Glass Fiber
Cloth Business
2.9

83.3

84.5

82.3

85.7

10.9

11.1

FY2019

4.0%

4.0

4

8.2 billion yen

10.8

80

0

FY13

Air pollutant emissions(t / yr)

8.2

2

0

FY19

62.8% reduction

FY19

Annual paid leave days taken(vs FY13)

FY20191212.6 days
12.6(Days)

990

1,000

8.2

FY15

Strategies for Value Creation(billion yen)
12

86.2

Japan
54.3

FY2019(billion yen)

Ratio of women in
management positions

(%)

3.74

2

Asia
23.7

Operating profit

100(vs FY13)

2.9

Total

Glass Fiber
Cloth Business
19.8

4.10

4

85.7 billion yen
Glass Fiberfor Industrial
Materials Business
21.4(t-CO2 / million yen)

8.9% reduction

Nittobo’s Value Creation

TextileBusiness
3.6

CO2 emissions per unit ofconsolidated net sales

10.9

8
60
500

40

368

6

FY19

0

4
20

0

FY15

FY16

FY17

FY18

Sales by geographic region/overseas
sales ratio(billion yen)120

6.1 86.2
22.3

32.9

5.7 83.3

84.5
5.8

82.3
6.3

85.7
7.7

20.4

22.1

20.6

23.7

60

FY17

FY18

FY2019
(%)

36.6

FY16

EBITDA

36.6%

32.7

FY15

40

(billion yen)

15.5

16

15.3

13.5 billion yen

15.0
12.2

30

12

20

8

0

FY19

PRTR substance emissions(t / yr)

13.5

FY13

140

57.8

57.2

56.7

55.3

54.3

10

4

FY16

FY17

FY18

FY19

0

0

20
0

FY15

Equity ratio
FY2019
(%)

58.9

54.2%

60

FY15

FY16

FY17

FY18

FY2019Per share dividend (left)
Payout ratio (right)

45 yen / 30.3%

54.2

52.3

80

30.3

21.4

0.2% reduction

Cross-shareholdings(vs FY13)

5.6 billion yen reduction

30

40

35

(10,000 m3/
10 billion yen)

103.7

103.5

(billion yen)

100

25.0

50

12.5

26.1
20.5

45

40

Data Section

30

Withdrawal water per unitof consolidated net sales

FY19

20

15.2

50

FY13

Internal

(%)

19.4

18.6

60

40

41

(vs FY15)

100

55.3

0

FY19

As of June 2020

4/7

(vs FY13)

External

Dividends/Payout ratio
(yen)

59.4

Ratio of External Directors

FY19

128

70
40

68.0% reduction

FY15

Foundation for Value Creation

31.3

100
80

FY2019Japan
Asia
North America, Europe, Other
Overseas sales ratio
33.0

0

FY19

10
20

40

08

FY15

Nittobo Group

FY16

FY17

FY18

FY19

0

FY15

FY16

FY17

FY18

FY19

0

0

FY13

FY19

0

FY15

FY19

Integrated Report 202009

Top Message
In formulating the Long-term Vision, we held repeated discussions to set out the appropriate vision for the Nittobo
Group. Up to now, the Nittobo Group has contributed to society through its core competence of uniquewhich we are entering, it will not be possible to achieve sustainable growth based solely on the ‘product-out’
Nittobo’s Value Creation

We aspire to be a company that gains

technologies. This essential feature will remain unchanged going forward. However, in the age of dramatic change
approach of using superior technologies to deliver advanced products. To signal an enhanced emphasis on the‘market-in’ approach of intensifying customer focus to create products that match customer needs, we selected

the trust of all stakeholders‘based on client expectations and technology’ as part of the key phrase heading up our “Long-term Vision 101.”
We believe that customer-oriented technologies are the key to creating unique businesses and products and willsecure for us the leading position in niche markets. Nittobo is a company founded in Fukushima, where almost halfof our employees work today. Due to our strong conviction that the recovery and development of Fukushima isin the pursuit ofindispensable to the Nittobo Group’s prosperity, we also refer to the Fukushima origin of our company and products
in our Vision heading. By repeatedly publicizing the Long-term Vision to our staff, we work to ensure that its
message permeates the organization and thereby creates shared values and goals. Under this vision, all employees
will work in unison to reinforce our status as a company trusted by all its stakeholder groups.

client satisfaction

Please see page 16 for an outline of “Long-term Vision 101.”

Strategies for Value Creation

Active investment for future growth
Since the financial crisis set off by the Lehman Brothers bankruptcy in 2008, the Nittobo Group has worked toestablish a resilient business structure able to generate earnings under any conditions. We have focused on
strategically targeted strengthening of our financial basis, which has also meant restricting research anddevelopment and investment for growth. In fiscal 2017, however, when we were on course to achieve our financial
strengthening goals, the Nittobo Group formulated the Mid-term Business Plan “Go for Next 100,” which signaled

Yuichi Tsujia switch in our operating mode to a proactive pursuit of new growth and included an active investment plan to lay

Director,
Representative and Chief Executive Officer

Nittobo Group needed to follow, the plan communicated to our employees the clear message that taking on newa foundation for growth in the period up to fiscal 2020. As well as outlining to all stakeholders the course thework challenges at the individual level and the resulting personal growth would feed into growth for theirorganization and growth for the Nittobo Group.
From the beginning of our new Mid-term Business Plan starting in fiscal 2021, we intend to steadily build on thegrowth foundation laid down by our current Mid-term Business Plan. We have confirmed that the growthFoundation for Value Creation

investment planned up to the end of fiscal 2019, which marks the completion of the third year of our current
Mid-term Business Plan, has proceeded according to plan. Specifically, we have invested comprehensively in
production facilities, research and development, and human resources to globally expand our medical business andto enhance production capacity for the Special Glass* used in 5G-related devices. In the Special Glass business,

All employees will unite toward realizing our Long-term Vision

where demand is booming, our newly completed melting furnaces continue full-scale operation and have begun tocontribute to business results. Even amid the COVID-19 and the resulting uncertainty as to future social andIn its Corporate Philosophy, the Nittobo Group states its aim as being to enhance its significance by striving toeconomic conditions, our policy of implementing continuous investment for future growth in this area remains

create healthy and comfortable lifestyles, and thereby continue to contribute to the realization of prosperous

unchanged. As the demand for 5G base stations and data centers is forecast to continue increasing in the medium

communities. In line with this mission, our contribution to society has been through products created with our

to long term, in addition to ensuring stable and efficient operation of our existing facilities, we plan to constructsuperior technologies. Looking ahead, our Corporate Philosophy will remain the core, around which we need to

new melting furnaces at three sites in Japan in fiscal 2020 and to start operation of a new factory in Taiwan in thecontinue changing and evolving to adapt to the new era. This is the approach underlying the Mid- to Long-term

fall of 2021. In this way, we will seek to further consolidate our profit base to fulfill our profit targets for fiscal

Business Plan “Long-term Vision 101,” which we formulated in 2017 as a goal to work toward for our 100th

2023, the final year of “Long-term Vision 101.”

anniversary in 2023, ready to launch into our 101st year and another century of business.

Our Corporate Vision “Long-term Vision 101”

Please see page 16 for an outline of our Mid-term Business Plan “Go for Next 100.”* Special Glass: the glass fiber materials NE-glass (low dielectric) and T-glass (low thermal expansion, high strength) developed using Nittobo’s unique technologies.
These products are highly competitive as substrates used in electronic materials for 5G applications.

Data Section

A company that delivers innovation worldwide from our origins inFukushima and Japan, offering unique value-added business and products
based on client expectations and technology

Working with customers to create new products that help resolve social issues
We estimate that there is currently a high entry barrier to the Special Glass field due to the advanced
technologies required. However, since it is seen as a sector for continued growth, we envisage that competitors

10

Nittobo Group

Integrated Report 202011

will emerge, and that competition will also arise in the form of alternative materials. Given also the rapid pace oftechnological advance expected going forward, we believe that it is fair to predict intensified competition.
Nevertheless, in addition to the technologies and expertise that we have built up over many years, we also havestrong relationships of trust with customers, many of whom evaluate our products highly and comment for
Nittobo’s Value Creation

instance that the highly stable quality of our Special Glass provides excellent support for their cutting-edge
product development. We believe that we will be able to retain our competitive edge by further strengthening
these relationships of trust and responding to customer needs, which in turn will contribute to resolving social
issues. With a committed approach to developing next-generation materials, we take the customer perspective inan effort to progressively deepen communication. The expected rapid pace of technological innovation going
forward makes it all the more important for us to lead our competitors in establishing the de facto standard of
the new generation. Rather than being satisfied with the ‘product-out’ approach of simply continuing a stablesupply of superior products, Nittobo will work to reinforce the trust of its customers through a committed,
customer-oriented approach to meeting sophisticated customer needs and shaping the future together.
Please see page 24 for more information on the development of Special Glass.

Strategies for Value Creation

Impact of COVID-19 on the Nittobo GroupThe COVID-19 pandemic has applied a sharp brake to the world economy, and in Japan as elsewhere, business
confidence is waning, the employment situation is worsening, and consumer spending is in decline. This situation

exploitation of the Nittobo Group’s strengths, will allow us to act in line with our Corporate Philosophy as a

has also had major impacts on the Nittobo Group’s businesses. In the glass fiber business, despite the COVID-19,

corporate group that creates healthy and comfortable lifestyles and realizes prosperous communities. In this way,

the spread of 5G infrastructure, such as servers for base stations and data centers, means that the demand for

we will realize both social contribution and sustainable growth for the Nittobo Group.

Special Glass for electronic materials is expected to continue expanding in the medium to long term. On the other
hand, reduced demand and changing lifestyles have led to very challenging conditions for textile products for theapparel industry and the glass fiber used in industrial materials for automobiles and residential buildings. In
seen a temporary reduction in demand due to the fall in hospital visits caused by fears of in-hospital COVID-19

Driving reform of in-house operations and systems in parallel with
COVID-19 infection prevention measures

infection and the postponement of regular medical examinations for corporate and educational institutions.

As a COVID-19 infection prevention measure, a home working system was introduced from March 2020 at Tokyo

addition, the in vitro diagnostic reagents business, which had previously been resilient to economic fluctuations, has

Nevertheless, the Nittobo Group’s long-term strategy remains unchanged. Keeping close watch on social trends,

Headquarters and other business locations. After the lifting of the state of emergency, the system continued, withtwo days of home working a week as a general rule. Face-to-face meetings have been avoided wherever possible in

we wish to boost future competitiveness. By practicing strict cash management, including optimization of inventoryfavor of online meetings. We have found it possible in online meetings to achieve adequate discussion and effective

levels, and taking other appropriate measures, we will at the same time steer a management course in keeping

outcomes in the same way as in face-to-face meetings, and when the COVID-19 is over, we intend to continue with

with our basic principles.

online meetings as an efficient tool.

Foundation for Value Creation

we will continue as before to invest financial and human resources in growth businesses and research fields where

The COVID-19 pandemic has highlighted the need for reform of workstyles and the introduction ofdigitization. As reform of inhouse operations and systems had lagged behind in some areas, we see theFacing the COVID-19 from a medium to long term perspective

present COVID-19 as a suitable moment to drive reform of indirect operations and the personnel system. As
part of this, we are looking into introducing ‘smart’ procedures for administrative operations, for instance by

The impact of COVID-19 seems likely to accelerate the trend toward changes in people’s behavior and the social

reducing the required use of stamps and paper-based documents in authorization procedures and switching

structure. Remote working and the increasing use of non-contact procedures will further promote the digitization

instead to an electronic workflow. It has also emerged that the current personnel system is inadequate inof society, while the spread of remote working in various fields is likely to speed the advance of 5G, the high-speed

many respects to deal with the regulation and evaluation of home working. Rather than piecemeal

telecommunications standard of the next generation, and give further momentum to the development ofadjustment, we believe the human resources system needs rebuilding. We would like employees to use theincreasingly sophisticated and high-speed functions in telecommunications infrastructure and devices such as

free time generated by this workstyle reform and the move to smart operations in a way that serves thetablets and smartphones. The Nittobo Group’s unique glass fiber material technologies will be in a position toindividual’s future goals, for instance to enhance their skills, pursue personal interests, or enjoy time with

contribute to the progress of this ‘social digitization.’

their families.

In the medical field likewise, there is a move away from treatment toward better diagnosis and prevention. Inline with the advances of a range of diagnostic and testing technologies, including those relating to the preventionof infectious diseases, it is likely that home-based medical treatment and other more effective and efficient
Nittobo Group will be able to play a part.
Amid this social change, the Nittobo Group needs to consider how it can best contribute using its core

12

Contributing to global environmental protection as an importantmanagement task
It is no exaggeration to say that contributing to global environmental protection is not an activity complementary totechnologies. We can then begin to target our thinking and actions toward the world of ten or twenty years fromour business operations but one vital to business continuity. To reduce the environmental burden associated withnow. We are confident that management that looks ahead to the post-COVID society, in other words, fuller

manufacturing processes, we have been moving toward more efficient systems through a process of trial and error.

Nittobo Group

Data Section

preventive treatments will become increasingly available. Here, the in vitro diagnostic reagents supplied by the

Integrated Report 202013

of Company business with a probing eye, so I approach the Board of Directors meetings in the same frame of mind
as the General Meeting of Shareholders. Their particular perspective means that external directors are often able topoint out to us risks and opportunities that are not apparent to insiders. It also stimulates discussion of the Nittobo
Group’s business from multiple angles and under multiple aspects, which is then reflected in our business execution.
Nittobo’s Value Creation

Please see page 52 for more information on corporate governance.

Creating a corporate culture open to active participation by all
In fiscal 2020, we appointed a new female external director, and this reflects our wish to create an environment still
more conducive to active female participation. However, real organizational diversity does not mean merely
increasing the number of females in managerial roles. We believe that the important thing, which applies also to
the Board of Directors, is to create a corporate culture in which diverse employees can discuss issues from multiple
perspectives in an atmosphere of mutual respect drawing on their respective areas of knowledge. To achieve thisrequires the cooperation of all Group officers and employees in creating a corporate culture open to participationby all with equal treatment in areas such as pay and conditions and staff assessment regardless of gender,
nationality, or other characteristics. I am keenly aware of my role as chief executive in leading the creation of such

Strategies for Value Creationan organization, and going forward I am committed to being open in my relations with employees and sharing withthem our successes and issues.
From the late 2000s, the fuel for glass fiber melting furnaces was changed from heavy oil to liquid natural gas,

Please see page 48 for more information on human resources diversity.

while we recently moved to further improve combustion efficiency by introducing oxygen combustion and hybrid
combustion with electric power as a partial heat source. Going forward, we will continue with initiatives that
include reducing greenhouse gas emissions, reducing water and raw material consumption, reducing thegeneration of byproducts, and re-using or recycling these resources as appropriate.
The Nittobo Group also contributes to reducing global environmental burden with the products it supplies.

Approach to shareholder returns
Our basic policy on shareholder returns is to aim for a steady dividend increase while taking overall account of otherdemands such as the strengthening of our financial base and building an adequate internal reserve to support

glass fiber as a potential substitute for metal materials. To save energy in the home, glass wool, an eco-friendly

stable future growth. I think the Nittobo Group is currently at the active investment stage, and we are therefore

material made from recycled glass, is an essential heat-insulating material, while glass fiber is also used in theworking to build a foundation for future growth. In fiscal 2020, we will continue with growth investment by adding

blades of wind power turbines and the dust-collection filters of factories and incineration plants. In this way, theto our Special Glass melting furnaces in Japan, constructing a new Special Glass factory in Taiwan, and alsomaterials we supply support the reduction of environmental burden across a wide range of industries. We are

expanding the production sites of our medical business in Japan and the U.S. While paying careful attention to thecommitted to expanding our range of environment-friendly products in the future. Realizing such products involves

balance between shareholder returns and growth investment, we have followed the basic shareholder returns policy

controlling costs, designing mass production systems, and numerous other issues, which we will overcome one by

I outlined above by increasing the annual dividend three times since I became president in 2016. In fiscal 2019, ourone with our sights fixed firmly on commercialization. With increasing calls for a move toward a recycling-oriented

investment in Special Glass facilities in Koriyama City in Fukushima Prefecture progressed according to plan andsociety, environment-friendly products are likely to yield significant added value. By listening carefully to opinions instarted contributing to profit in the second half of the fiscal year. This has enabled us to increase the annual

the public sphere, then presenting concrete solutions, we will continue working to protect the global environment.

dividend per share by 5 yen from the previous fiscal year to 45 yen.

Please see page 43 for more information on environmental initiatives.

Foundation for Value Creation

Weight reduction in vehicles and aircraft to increase fuel efficiency is one route to greenhouse gas reduction, with

Please see page 32 for more information on glass wool.

Emphasis on dialogue with shareholders
Benefiting from the input of external directors in management

My motto is “openness,” and as soon as I became president, I made it one of my basic policies to establish aculture of openness both internally and externally. As far as possible, I attend Financial Results Briefings and investor

as outlined in Japan’s Companies Act, and has worked since then to reinforce supervisory functions and ensure

meetings, where I can communicate my own ideas and opinions directly to shareholders and investors. At thesehighly transparent management, prompt execution of business and enhanced management agility. So that thismeetings, I take the approach of presenting the full picture without hiding anything, giving not only positive

system functions effectively for sound and transparent management, we believe it necessary to conduct

information but also the facts on the management issues and risks we face. I also attach great importance tomanagement oversight from wide ranging stakeholder viewpoints. It is therefore essential to be able to draw onlistening carefully to shareholder opinion. When formulating business plans and strategies, we take account of their

the experience and knowledge of external directors from diverse backgrounds. In fiscal 2020, our newly

suggestions and opinions and reflect them in our policies. Our shareholders have strong future expectations from

appointed external directors include individuals with many years of experience in corporate management and a

the Special Glass and medical businesses which we have designated as growth businesses. In order to reliably meet

female director, who will each strengthen the diversity profile of the Board of Directors.

those expectations, the Mid-term Business Plan due to launch in fiscal 2021 will present a new vision for the

To stimulate more active and in-depth discussion at Board meetings, sharing of information with external

Nittobo Group of the year 2030 and will set out how we can best leverage the Nittobo Group’s core competences

directors is indispensable. Therefore, one week in advance of each meeting, we hold a preliminary briefing where

to contribute to realizing a healthy, safe and secure society that is digitally advanced and at the same time values

the agenda items are explained and questions answered to the satisfaction of the external directors. Partly as aenergy-conservation and the global environment.

result of this, our Board of Directors meetings are always characterized by frank and lively discussion that frequently

Data Section

In 2014, Nittobo shifted to the corporate governance structure of a company with Nomination Committee, etc.,

I hope that we can rely on your continuing support and encouragement in the long term.

overruns the allotted time. Equipped with wide-ranging knowledge, the external directors supervise the execution

14

Nittobo Group

Integrated Report 2020

15

Progress of Mid-term Business Plan
On April 1, 2023, Nittobo will celebrate the 100th anniversary of its foundation. So that the
Nittobo Group can look forward to another 100 years of sustainable growth, we haveformulated two strategic outlines: “Long-Term Vision 101,” which sets out a vision to work
toward for our 101st year in fiscal 2023; and a Mid-term Business Plan “Go for Next 100” forthe Nittobo Group covering the four-year period from fiscal 2017 to fiscal 2020.

Management Targets (Consolidated)
Nittobo’s Value Creation(billion yen)

Mid-term Business Plan
“Go for Next 100”
FY2020A Corporate Vision for the Nittobo GroupThe Nittobo Group believes that now is the time to lay the foundation for the next century of business. It is our duty“Long-term Vision 101”
FY2023

Net sales

100.0

150.0

Operating profit

12.0

15.0

EBITDA

20.0—

Net profit

8.0

10.0

ROE (%)

8% or higher

10% or higher

to stakeholders to ensure our business continuation in our home country of Japan, while seeking sustainable growth
on a global scale.

A company that delivers innovation worldwide from our origins
in Fukushima and Japan, offering unique value-added business and products
based on client expectations and technology

We will work to build a financialbase that supports growthinvestment and to enhanceshareholder return

Strategies for Value Creation

Our Corporate Vision: “Long-term Vision 101”

Hiroyuki Tada
Managing Executive Officer
General Manager of the Corporate
Business Planning Division

Overview of Mid-term Business Plan
Our Mid-term Business Plan “Go for Next 100,” covering the four years from fiscal 2017 to fiscal 2020, is an important firststep toward realizing our Corporate Vision by building a foundation to maintain current profitability while capturing future
growth opportunities.

(Establishment of Research & Development Headquarters)

R&D
Market-oriented
research• Expand sales of NE-glass, T-glass, andmultilayer structured yarns• Expand applications of glass fiber products
for composite/industrial materials andincrease overseas sales ratio• Secure top market share of immunology inJapan and expand overseas business• Form strategic alliances, implement M&As

• Set environmental load reduction targets• Coexist in harmony with local communities

Production

Sales
Accelerate shift tohigh value-added
products

Five Key
Initiatives

Environment &Society
Take action onsocial issues

Reinforce high value-added
production capacity, costcompetitiveness, andimprovement of
productivity

Management
Establish a soundmanagementfoundation• Increase NE-glass/T-glass production capacity• Respond to demand for high value-added

glass cloth• Streamline and strengthen productivity for invitro diagnostics• Apply textile business technology toindustrial materials• Improve productivity with AI and IoT• Improve capital efficiency (Active use ofunderutilized real estate, reduction of
securities portfolio, etc.)

16

Nittobo Group

Financial Resources

Purposes of Use

Operatingcash flow

Capitalinvestments

Asset utilization

Shareholder returns
Reduction of interestbearing debt, etc.

Shareholder Returns
FY16 results

FY17 results

FY18 results

FY19 results

FY20 forecast

Per share dividend

35 yen40 yen40 yen45 yen45 yenPayout ratio

18.6%

15.2%

19.4%

30.3%

17.5%

Total return ratio

41.7%*

22.8%

19.5%

30.4%

17.6%

Data Section—Challenges for Change and Creation— (FY2017-FY2020)

been successful and that it began to show results infiscal 2019. Accordingly, we have set the year-end
dividend at 25 yen per share, a 5-yen increase
compared to the interim dividend, for a total annual
dividend of 45 yen.
We will continue to invest for future growth while
maintaining a sound financial position, and also take a
dynamic and flexible approach to shareholder returns inline with our financial situation.

Foundation for Value Creation• Establish market-oriented development system• Put in place system for promotion of long-term development

Since the financial crisis set off by the Lehman
Brothers bankruptcy, the Nittobo Group has worked
to build a business structure able to generateearnings under any conditions.
Under our current Mid-term Business Plan, the priority
has been to use operating cash flow from businessactivities and capital proceeds from the sale of unused
assets and cross-shareholdings to carry out growthinvestment for a shift to high value-added products while
maintaining a sound financial basis. In fiscal 2019, weraised capital by issuing corporate bonds and expanded
our committed credit lines in order to ensure financial
stability and short-term liquidity for the event of suddenchanges in the financial environment.
We view dividend policy as one of the mostimportant management issues and have adopted abasic shareholder return policy of implementing stabledividend growth while monitoring the dividend payout
ratio. We are satisfied that the investment in newSpecial Glass melting furnaces carried out so far has* Repurchased own shares

Integrated Report 202017

3

Progress, Results, and Future Initiatives
1

Major Investments (Including M&A)
FY2017(billion yen)

FY16 results

FY17 results

FY18 results

FY19 results

FY20 forecast*

Net sales
Operating profit
EBITDANet profit

83.3
11.1
15.3
7.5

84.5
10.8
15.0
10.3

82.3
8.2
12.2
8.0

85.7
8.2
13.5
5.8

81.0
5.5
—
10.0

ROE (%)

9.8%

12.5%

9.1%

6.3%

—

FY2018FY2019• Glass Fiber Division
Special Glass
Enhancement

Fukushima (Koriyama City)

3 domestic sites(Fukushima, Koriyama, Moka Cities)

Respond to fine-count yarn
Taiwan [NAG*1]

Acquire shares

FY2021—

Fukushima (Fukushima City)

New melting furnaces
for NE-glass forcomposite materials
Tochigi(Moka City)* As of August 2020

FY2020

Nittobo’s Value Creation

Business Results (Consolidated)

Taiwan [NAG*1]

Respond to ultra-thin cloth

Taiwan [Baotek]

Taiwan [Baotek]

From the second half of fiscal 2019, we began to see the benefits of investment under the current Mid-term Business Plan and• Medical Businessbelieve that we have laid the foundation on which to realize the plan’s management targets. However, given the changed businessenvironment in the wake of the COVID-19 pandemic, along with other factors including the impact of a fire accident at our

New factory (1st stage)(2nd stage)

Fukushima (Koriyama City)

Fukushima (Koriyama City)

Fukushima No. 2 factory in July 2020, our earnings forecast for fiscal 2020, the final year of the Mid-term Business Plan, envisages

New buildingthat the plan targets will not be fulfilled. However, the direction of future plan initiatives remains unchanged.

Capital Investments and R&D Expenses

Capital investment (based on acceptance)

R&D expenses(billion yen)(billion yen)

20

2.0

16.9

M&A

15

16.7

R&D expenses (left)
R&D expenses as ratio of net sales (right)

1.4

1.5

1.9

1.7

1.8

2.0

11.9
10

2.5

1.5

*1 NITTOBO ASIA Glass Fiber Co., Ltd.
*2 Nittobo America Inc.
2

1.0

7.0

We believe that the four-year period of our current Mid-term Business Plan is a time to lay the foundation for further future growth.
1

5

0

0.5

2.0
FY16

FY17

FY18

FY19

In its concluding year, fiscal 2020, we will proceed with expansion of production facilities in Japan and overseas, mainly for Special0

Number of
persons inresearch anddevelopment
headquarter

Basic Management Policy

Glass Fiber business
Drive the shift to high valueadded products to establish aposition as market leader in theglass fiber industry

Life Science business
Grow the medical business into
the Nittobo Group’s second pillar

FY16

FY17

FY18

FY19

FY20
(forecast)

70

80

95

104

128

18

Nittobo Group

Glass in the Glass Fiber Division. In the Medical Business, meanwhile, we will continue to enhance our production sites in Japan andthe U.S., building a value chain of global activity from research and development to regulatory operations, production, and sales.

Future initiatives

Increased production capacity forSpecial Glass (yarn)

Increased glass cloth production
capacity

Further increase in Special Glass (yarn) production capacity

Development of high value-added glass cloth• Optimization of product mix at Fukushima No. 2 factory• Acquired Baotek shares•
ew melting furnaces at production sites in Japan to begin operation• Nsuccessively
from second half of FY2020• New Taiwan factory to start operation in the second half of FY2021

Strengthening of value chain
through M&A

Consolidation of top market share in
immunological field

Expansion of production resources• N-Assay LA CRP-U Nittobo

cquired overseas sales network and• Aregulatory
expertiseStrengthened
research and production•• Strengthening of sales structure in Japan and overseas• Expansion of overseas sales

Development of advanced functions

Structural reform

eveloped environment-friendly products with advanced• Dfunctions

ransferred Nittobo (China) Co., Ltd., to Chinese• Tlocal
enterprise

Building a system for development, production, and sales
targeting the industrial and consumer materials sectors

ncreased production capacity at existing sites in response to• Ibooming• High value-added glass clothdemandContribution to sales from the second half of FY2019•

 ecided to increase production capacity at sites in Japan andDoverseas to respond to further growth in demand

Sales launch of high value-added new products•

N-Assay LA IgG4 Nittobo
Launched sales of in vitro diagnostic reagent kit formeasuring blood levels of IgG4

Increased ratio of high value-added products
at Fukushima No. 2 factory
Secured glass cloth production capacity

Increased capacity utilization rate at domestic
production sites

 ontribution to full-year business results from FY2020 and further increaseCin efficiency• Development through collaboration with Glass Fiber Divisioneform of sales system to penetrate the industrial and consumer• Rmaterials
sectors

Technology transfer to Baotek• Shift to high value-added operations at Baotek
Start of Special Glass cloth production• Increase in production capacity for increased sales

Expansion of Japan and the U.S. production sites

Data Section

Develop advanced functions totransform the business into a
profitable business

0

Progress and results

Launched sales of measuring reagent with improved
performance at low concentration

Textile businessIn the three years up to fiscal 2019, we undertook capital investment, including M&A, of over 40.0 billion yen.

Foundation for Value Creation

FY20(forecast)Completed new R&D
Headquarters “NI-CoLabo”
Fukushima (Koriyama City)

3

1.7

1.6

16.0

5.0

(%)

2.0

• R&D

U.S. [NTB-A*2]

Strategies for Value Creation

2• Acquired Kamiya (U.S.)
Investedin Rimco•• Acquired Capricorn (U.S.)• Acquired Frontier Institute• Established FAN (JV with Fujikura Kasei)

Improvement of profitability
roductivity improvement at domestic sites, further progress with
• Pcost
reduction

Integrated Report 202019

to adapt to changing times
Minoru Takeuchi
Managing Executive Officer
Head of the Research &Development Headquarters

Nurturing Research and Technology Capabilities in the Long Term

Research & Development
Headquarters
Research PlanningManagement Department

Intellectual Property Division

Medical SC Newtech
Strategy Office
Fiber R&D Center
Medical R&D CenterNorth America R&D Center

Focus Fields in Research and Development
The Fiber R&D Center engages in activities including
development of novel glass fiber compositions for use with
5G and the next-generation 6G; research into ultra-thin glass
fiber cloth; research into bio-compatible glass fiber materials
for environment-friendly applications; and ultra-high strength
glass fiber development.
The Medical R&D Center is focused on in vitro diagnostic
reagents and engages proactively not only in modification ofexisting products but also development of novel items.
Specifically, we are concentrating on enhancement of the
Nittobo Group strengths in immunology, inflammation, andosteoporosis. We are also developing devices and reagentswith a view to diagnosis based on POCT*, and have launcheda project for stable supply of antisera through collaboration
with overseas business sites.
The research work of the Medical SC Newtech Strategy
Office not only covers our established diagnostic fields, butalso extends to diagnostic technology in the fields of oncology
and genetics.
As a Research & Development Headquarters, we intend to
devote resources to research and development fields thatcross the boundaries between individual businesses. In fields
not specifically connected to existing businesses also, we will
promote collaborative projects based on the application of thepolymer technology of our specialty chemicals business inareas such as glass fiber interface technology, and expanded
applications for the infectious disease preprocessing kits of
our Medical Business.
* Point-of-care testing (POCT): real-time testing with compact analysis devices and rapid
diagnosis kits
Development of technologies andapplications new to Nittobo

Development of new applications for
Nittobo proprietary technologies

Fiber R&D
CenterUltra-thinglass fiber

Modification ofexisting products

New glass fiber
compositions
Ultra-high-strength glass
Bio-compatible glass

Glass fiber
Melting technology
Interface treatment

NI-Tech*Cancer, genetics,
regenerative
medicine

POCT

New diagnostic
reagents
Modification of
NI-CoLabo
diagnostic
reagent
Medical R&D Center
products
New product

Existing products /existing technologies

development
New products/new technologies* Medical SC Newtech Strategy Office

Foundation for Value Creationindispensable to the infrastructure and terminals supporting
5G, the next-generation telecommunications standard.
Another approach central to our thinking is to engage in
specialized development of materials and raw materials at the
upstream end of the supply chain. Since Japan’s post-war
period of strong economic growth, rapid change in market
needs has shortened product life cycles. When end products
are having to adapt to meet the requirements of the day, our
special focus on material development and supply, at the
upstream end of the supply chain, has allowed Nittobo to rideout the change.
Our pioneering approach to new technology and our priority
attention to the materials and raw materials field provide thedriving force to consistently produce results. These in turn arerooted in a corporate culture that focuses on nurturing
technologies from a long-term perspective. If we take theexample of Special Glass and in vitro diagnostic reagents, it
took a long time before they began to yield profit, but now
they have grown into the pillars of the Nittobo Group’s
prosperity. Going forward, we will continue with committed
initiatives to nurture the seeds of innovative technologies.

Organizational Chart

Strategies for Value Creation

At the heart of Nittobo’s research and development andtechnology development is a pioneering spirit in constantpursuit of new discovery, exemplified by the motto of oursecond president, Sanpei Katakura: “Let’s turn anything into
fibers.” In the spirit of this motto, Nittobo has developed awhole series of unprecedented new materials and associatedmanufacturing methods. Having achieved Japan’s firstcommercial production of glass fiber, glass wool, staple fiber,
and rock wool, Nittobo can indeed be described as a uniquecompany with a rich pioneering spirit. Our consistent embraceof change as an opportunity to move forward by creating new
products and new technologies is for us a further indicationof the pioneering spirit we have inherited. The glass fiber thatis our main product was used before and during the war as anonflammable material. During the post-war period of strong
economic growth, it found a wide range of applications as aplastic reinforcing material and contributed to thedevelopment of mass production methods. In the electronics
field, which began to evolve rapidly from the late 1960s, it
was used as a glass cloth insulating layer for integrated
circuits. Today, Nittobo’s Special Glass cloth is a materialarea, which is a hub for the latest knowledge in medical
science, it offers the optimal research environment for open
innovation on an international basis. Here, we aim to create
medical diagnosis technologies that will unlock new domains
for our future in fields such as oncology and genetics.

New markets

research and technology development

Nittobo’s organizational framework for research anddevelopment consists of a Research & Development
Headquarters under the control of which are placed the Fiber
R&D Center, Medical R&D Center, and Medical SC Newtech
Strategy Office. The Research & Development Headquarters
acts as the control center, promoting horizontal collaborationcompany-wide and reinforcing the research and development
functions of existing businesses. Additionally, it explores basic
and cutting-edge technologies to serve as the business pillarsof the future.
In 2018, to upgrade the functions of the Medical SC
Newtech Strategy Office, we established NI-Tech as a satellite
laboratory center in Kawasaki City, Kanagawa Prefecture. Thisfacility is located on the third floor of the Innovation Center of
NanoMedicine, which is equipped with state-of-the-art
experimental equipment. Situated in Kawasaki’s King Skyfront

Nittobo’s Value Creation

For progressing with advanced

Organizational Framework for Research and Development

Existing markets

Strategy for Research and Technology Development

Our Vision for the Research & Development Headquarters

20

Nittobo GroupOne of the key policies of our Mid-term Business Plan is toestablish a research and development structure to promote
themes in the medium to long term. This reflects our wish toprovide a conducive research environment in which staff candevote themselves unhindered to their research activities. As
well as providing an organizational framework for the
Research & Development Headquarters, we gave it physicalform with the completion in April 2020 of a new facility
known as NI-CoLabo, which was conceived as a landmark
symbolizing the Nittobo Group’s research and development
functions. This new facility creates an open environment fordevelopment based on the concept of pursuing synergies byremoving the barriers between business divisions, individual
enterprises, and the local community.

Research and Development with Active Participation of Diverse Human Resources
For the Research & Development Headquarters to generateinnovation through its organization and facilities, humanresources development is essential. To encourage this byadding a scholarly dimension to our researchers’ work, wehave put in place an employee education system to promote
the acquisition of academic degrees and support overseas
study. To enhance researcher motivation, we have additionallyestablished a system that gives financial rewards forcontributions to business operations. This has alreadyproduced results, with an increase in the number of patentapplications and other significant concrete benefits.
Meanwhile, as part of our efforts to create an environmentthat matches the diversity of our researchers, we have taken
steps to enhance employment conditions so that staff canachieve a good work-life balance and approach their duties ina positive frame of mind. As a result, we have achieved asituation where almost half the researchers in our Medical
Business are female, and in 2020 we appointed the firstfemale manager in our development divisions. Going forward,
by enhancing diversity, creating a more conducive workplace,and establishing a solid human resources base, we aim toenhance our potential in terms of both physical and intangible
assets to drive growth in the Nittobo Group’s research anddevelopment capabilities.
Integrated Report 2020

21

Data Section

Many of our technology breakthroughs have emerged fromgeneral research activities in the respective business divisions.
However, one difficulty was the priority given to productdevelopment that yields immediate profit, leaving fewer
resources for research and development leading to thecreation of new businesses in the future. To acquire basic
technologies that will serve as future business pillars andgenerate further innovation, we needed to bring together theknowledge resources of all business divisions to generatesynergies. In 2017, we responded by reorganizing the
research and development departments which had been
under the control of individual business divisions, integratingthem into a newly formed Research & Development
Headquarters.

e
tur
a
e
e
F icl
Art

1

Promoting Open Innovation

Children’s
Experimental
Laboratory
Nittobo’s Value Creation

Establishment of NI-CoLabo,a new research site

Strategies for Value Creation

As part of NI-CoLabo, we have created a permanentChildren’s Experimental Laboratory. Meanwhile,
employees from the Fukuyama Enterprise Center
hold science classes at local elementary schools togive the children who are tomorrow’s leaders an
opportunity to encounter science and develop theirinterest and curiosity. This initiative has been rated
highly for encouraging children to learn throughexperiment in a fun atmosphere and is also valuedby the Nittobo Group and its employees as animportant contact point with the local community.
Going forward, we will seek still more active contact
with the local community and also promote
opportunities for children to discover the excitementof science through hands-on experiences.

Recreational
Space

Foundation for Value Creation

At NI-CoLabo, we have created a recreational spacearranged around the central atrium at second- andthird-floor level. With its high ceiling, the space hasan open feel and is infused with the organic warmthof wooden materials. Serving as a relaxedenvironment to eat lunch or take time out in, it isalso a shared space where staff from different fields
of work can enjoy casual contact in breaks fromtheir research work.

In its blueprint for sustainable growth, Long-Term Vision 101,

research system that can transcend existing frameworks tothis environment, researchers can devote themselves tothe facility includes spaces for learning through scientific

the Nittobo Group declares its Corporate Vision of delivering

operate freely across organizational boundaries. NI-CoLabo

unhindered scientific inquiry. The advanced facilities also

experiment that will host events for children from theinnovation worldwide from its origins in Fukushima and Japan,

brings together a number of functions previously dispersed asfeature experimental facilities and meeting rooms forneighborhood, areas open for site tours by outside visitors, andoffering unique value-added business and products based on

separate departments within the Fukuyama Enterprise Center—collaborative research with industry, government agencies, andseminar facilities available for use by external bodies as well as

client expectations and technology.

the Medical R&D Center, Specialty Chemicals R&D Center,educational institutions and a training center for engineers.

for in-house purposes.
Among the core competences of the Nittobo Group is its

Research Planning Management Department, and Intellectual

The environment we aim to create is one where the barriers

Property Division—in an integrated system for our research andbetween individual industries and companies are transcended,unique, world-leading technology. So as to continue withestablishment of a structure to promote medium- to long-term

technological development functions, of which the Glass Fiber

stimulating interaction between researchers from both withinsustainable growth for the next 100 years, our research

themes. To realize this strategy, in April 2020, the Nittobo

Division is also a part.

and outside the company to generate innovation and enablefacilities will continue evolving and refining our fundamental

partnerships. We also want to be a research institute that is felt

technologies. At the same time, NI-CoLabo’s activities will aim

the core of our research and development activities. To

safe handling of chemicals and medical experimental

to be part of the surrounding community and can serve as ato open up technology domains and applications that are newcontinue contributing to society going forward through well-equipment, we have also provided extensive ‘free’ spacefacility for community exchange. Although we will have toto the Nittobo Group.

timed proposal of high value-added products, we need aavailable for recreation and for casual communication. Within

restrict activities temporarily during the COVID-19 pandemic,

Group opened NI-CoLabo, a research site designed to act as

22

Nittobo Group

Inside NI-CoLabo, in addition to research areas for clean andIntegrated Report 2020

23

Data Section

Our Mid-term Business Plan, which is the roadmap to thisvision, takes as its key research and development strategy theAccelerate next-generation product

The 5G device market divides into wirelesstelecommunications devices such as base stations andsmartphones, and wired devices such as servers, switches, androuters. The wired market requires NE-glass to facilitate
high-speed operation of devices such as the servers of data
centers for large-volume data processing, the routers thatconnect between networks, and the switches that connect
networks with servers and other electronic devices. In thewireless market similarly, we expect that NE-glass demand will
step up further from around 2022, when millimeter wave,
which delivers 5G-level performance, goes live.
Looking ahead to the technology advance we envisage intelecommunications and electronic devices, we believe thatdevelopment by anticipating the needs

Implementing the 5G-6G Roadmapetur
FeaicleArtof the times and of our customers

2018

2020

NE-glass and the next-generation low-dielectric productknown as NER-glass will provide sufficient performance up to
the level of 5G. However, when 6G launches in around 2030,
glass cloth with still lower dielectric constant and dielectric
dissipation factor will be needed. We are therefore proceedingurgently with research and development of the generationafter-next products DX I and DX II. As long as the trend
toward high speed and large volume in information andtelecommunications continues, development of substratematerials with ever lower dielectric properties will be essential.
We are committed to steadily advancing with a research anddevelopment roadmap designed in response.

2022

2024

6G

Hideyuki Hatanaka

5G—6GHigher Speed and Larger Volume in Telecoms Infrastructure Boosts Demandfor Low-dielectric Glass

24

Nittobo Group

were used to realize low dielectric properties. In 2020, which
has been called year zero for 5G, upgrading of thetelecommunications infrastructure is in progress to realize thehigh-speed, large-volume telecommunications promised by
5G, but this demands further lowering of the dielectric
constant to cut transmission loss. As there is a limit to theperformance achievable with resins, glass cloth is now being
targeted for low-dielectric properties, and as a result, thedemand for low-dielectric NE-glass is surging.

5G expansion stage (millimeter wave), local expansion

Wireless telecoms
marketSmartphones 5G-Sub6

1Gbps

5G millimeter wave

10Gbps (28GHz)BBU•RRH

5G millimeter wave

BBU•RRH

6G

Base stations

5G-Sub6

Vehiclemountedradar

Quasi-millimeter wave radar

100GbpsMillimeter wave radar
High speed, low-latency, multi-connection
1.6TbE

Routers
Switches

800GbE
400GbE
100/200GbE

112Gbps×8L

56Gbps×8L

High speed, high capacity, low latency

28Gbps×4/8L

PCIe6.0

Servers

PCIe5.0
PCIe4.0

112Gbps×16L

63Gbps×16L

32Gbps×16L

16Gbps×16L

High speed, high capacity

Products Supplied/Under Development by Nittobo

Low-dielectric, low-loss glass fiber

Low transmission loss

Ultra-low transmission loss

(in mass production)(in testing)

NE

NER

Next-generation super-low
loss I (under development)

Next-generation super-low
loss II (under development)

DX I

DX II

(Source: Ministry of Internal Affairs and Communications materials)

Future Outlook
As a high-speed, large-volume telecommunications network
takes shape worldwide, Nittobo, which supplies the
low-dielectric glass fiber essential to its realization, is aware ofits great role and responsibility. At the same time asstrengthening the production system to ensure stable supply,
we are accelerating research and development for
next-generation products to contribute to the rollout of thenext generation of information and telecommunications
infrastructure. By publishing a research and development
roadmap that looks ten years ahead, we want to demonstrate
our commitment not only to meeting immediate 5G demand,
but also to building the information infrastructure of the future.
In parallel with ultra-high-speed telecommunications, thedevelopment of advanced functions in information processing

is also progressing, which promises to bring expanding demandfor Nittobo’s low thermal expansion T-glass used insemiconductor packages. We are confident of our ability tocontinue contributing to the advanced information society inthe two areas of NE-glass for telecommunications and T-glass
for semiconductor packages.
We believe that glass fiber has the potential for rollout to awide range of fields. Combining low-dielectric glass withexpertise in the composite materials field, we havecommercialized a resin reinforcing material permeable to radio
waves which is now in use in the covers of 5G smartphones.
For the future, we are looking into applications in fields such as
automated driving and aviation.

Integrated Report 2020

25

Data Section

To realize high speed, which alongside large-volume is one of
the features of 5G telecommunications, higher frequency isrequired. This leads to transmission loss and deterioration of
signal quality, so that reduction of dielectric constant anddielectric dissipation factor is required.
Modern telecommunications entered its first generation(1G) in the 1980s and progressed from 3G to 4G around2010. At the some time, materials with low dielectric constantwere in demand, but instead of glass fiber, modified resins

Production

5G initial stage (Sub 6) mobile expansion

Wired telecoms market

research into the upstream processes of glass compositionand spinning technology, the Electronics Materials ResearchLaboratories engage in the downstream processes ofdeveloping technology to make thinner glass cloth and fiber
spread-out technology to unravel strands in woven glass
cloth, as well as research and development ofhigh-performance binder.
In the 1980s, Nittobo established a subsidiary for the
manufacture of printed wiring boards and semiconductor
packages (Asaka Electronics Co., LTD., 1983 to 1996), whichrolled out operations in a field directly connected to end
manufacturers. This not only allowed us to acquire expertisein printed wiring boards and semiconductors, but also gave us
an entry into the electronic device and semiconductor industry
with its fast-paced technological innovation. This experienceequipped us with the major assets of speedy market response
and a customer-oriented approach, which remain part of our
DNA today.
Nittobo is thus involved in both upstream research anddownstream production activities and has established aposition as a leading company of glass fiber in the electronicmaterials field, having created the world’s finest glass yarn
with a filament diameter of 3.5μm, ultra-thin glass cloth,
NE-glass with low dielectric properties and T-glass with low
thermal expansion and other superior properties.

6G (10 x 5G capacity)

Specifications

Foundation for Value Creation

In 1938, Nittobo succeeded in Japan’s first industrial
production of glass fiber. Since then, we have continued
developing products to meet the needs of the times. To
reinforce basic research functions, we established a Minerals
Fiber Research Center in 1954 and began working full-scale
on research and development of glass fiber composition anddevelopment of precision fiber-spinning technology. Given the
post-war recovery demand and the growing use of plastics,
the main application of glass fiber at the time was inconstruction and plastic reinforcing materials.
From the 1970s, electrical products which had previously
run on wired circuits began to adopt printed wiring boards, inwhich glass cloth, made by spinning glass fiber into clothform, was explored as an insulating layer. Due to its insulating
properties and dimensional stability, Nittobo’s glass cloth was
widely adopted in combination with resins as a substrate forprinted wiring boards.
The rapid spread of computer use and their increasingly
compact dimensions, coupled with trends such as theincreasingly advanced functions of home appliances, ledprinted wiring boards to acquire an ever wider range ofapplications. To respond by strengthening the research anddevelopment of glass cloth, we established the Electronics
Materials Research Laboratories in 1987. While theabovementioned Minerals Fiber Research Center undertakes

2030

5G mature stage, industrial application expansion

Timeline

More advanced functions in 5G devices

Building a Major Position in the Electronic Materials Field

6G

Study

2028

Strategies for Value Creation

Managing Executive Officer
Vice President of Research & Development Headquarters
Director of Product Planning and Development
Headquarters of Glass Fiber Division

2026

Nittobo’s Value Creation

Glass fiber opens the future
2 high-speed telecommunications

Roadmap for the Rollout of Next-generation Telecommunications

Glass Fiber Division
Glass Fiber Yarn Business

Glass Fiber Cloth Business

Glass Fiber for Industrial Materials Business

Impact of COVID-19

perspective, design productsthat contribute to the

Building Information Infrastructure and Contributing toEnvironmental Burden Reduction

Kazuhiko Igarashi
Managing Executive Officer
General Manager of the Glass Fiber Division

Review of Fiscal 2019

FOCUS ON
Building a Special Glass Production System in Taiwan
With the development of high-speed, large-volume telecommunications
and the global rise of 5G, the demand for Special Glass for base stations
and data centers is expanding and we are enhancing production facilities
in response.
To enhance production capacity for Special Glass yarn, in fiscal 2019 we
installed a number of melting furnaces at Koriyama City, Fukushima Prefecture.
In fiscal 2020, we will install melting furnaces at three sites in Japan(Fukushima City and Koriyama City in Fukushima Prefecture and Moka City in
Tochigi Prefecture), and in the fall of 2021 we plan to start operation of the
new Special Glass yarn at NITTOBO ASIA Glass Fiber Co., Ltd., in Taiwan.
Likewise, to enhance glass cloth production capacity, we are progressing
with allocation of human resources and provision of technology support
ahead of the planned start of Special Glass cloth production at the Taiwanbased company Baotek Industrial Materials Ltd., which became aconsolidated subsidiary in 2019. Our aim is to establish an integrated
production system in Taiwan able to manufacture materials from Special
Glass yarn to cloth.
This will enable us to produce Special Glass at a number of sites
worldwide, which will reduce the risk to business continuity in the supply
chain and enhance customer confidence.

Global production system forSpecial Glass (planned for 2021)

Japan:

4 sites(3 for yarn, 1 for cloth)

Taiwan:2 sites(1 for yarn, 1 for cloth)

Yarn

Cloth

FY2019Japan: 1 site (Koriyama)J apan: 1 site
(Fukushima No. 2)

FY2020plan

J apan: 3 sites (Koriyama,
Fukushima, Moka)

Japan: 1 site

FY2021plan

J apan: 3 sites
Taiwan: 1 site (Chiayi)J apan: 1 site
Taiwan: 1 site
(Taoyuan)Integrated Report 2020

Data Section

Nittobo Groupenvironmental burden reduction. In the field of
mobility-related applications, a shift toward lighterweight and electric vehicles is under way with a view
to CO2 reduction. This is an area where we canprovide the light weight and high strength which arejoint features of glass fiber. Going forward, theResearch & Development Headquarters will join
forces with the Glass Fiber Division to develop
products that are not only environment-friendly but
lead to real environmental improvement.

Foundation for Value Creation

26

such as base stations and data centers, in which
Nittobo’s Special Glass is used as an essential
substrate material. Our current Mid-term Business
Plan, which sets out a policy of further enhancing the
Nittobo Group’s strengths, has allocated resources toputting in place a production system able to meetthe resulting boom in demand for Nittobo products
by increasing the number of Special Glass yarn
melting furnaces. These new melting furnaces began
contributing to business performance after coming
into full operation in the second half of fiscal 2019.
In the second quarter of fiscal 2019, to reinforce
glass cloth processing, we integrated as aconsolidated subsidiary Baotek Industrial Materials
Ltd., a manufacturer based in Taiwan, which is
known for its concentration of electronic component
manufacturers.
In the area of glass fiber for plastic composite
materials, global competitors have emerged, leading toincreased commoditization and intensified competition.
We therefore believe that development of highvalue-added products in this field is an urgent task.

The Nittobo Group has industry-leading technologicalcapabilities to provide stable supply of ultra-fine yarn
manufactured with world-class precision and Special
Glass with novel compositions in the usage forelectronic materials. While 5G has yet to reachfull-scale rollout, we are pushing energetically ahead
with research and development of products
compatible not only with the current state of 5G but
also the 6G standard that will come on stream in
2030. In this way, we aim to create cutting-edge
Special Glass products to meet customer needs.
In the area of materials for use in composites andindustrial applications, our aim is to continuously
develop new products that contribute toStrategies for Value Creation

advanced digital society

The Glass Fiber Division divides into three businesssegments: the Glass Fiber Yarn Business, covering
glass fiber yarns for electronic and industrial materials
and glass fiber for plastic composite materials; theGlass Fiber Cloth Business, consisting of glass fiber
cloth for electronic materials; and the Glass Fiber for
Industrial Materials Business, including glass wool asa residential heat-insulating material and glass fiber
cloth for industrial materials. One of the Nittobo
Group’s strengths is high value-added products,
including items for use in electronic materials. Here,
we have established a reputation as a global leader
thanks to our production technology for the world’s
finest glass fiber yarn and thinnest glass fiber cloth,
our range of Special Glass products based on glass
compositions uniquely developed for advanced
performance, and an integrated production systemequipped not only for yarn production but also
inhouse processing of yarn into cloth.
To support the rollout of high-speed, large-volume
telecommunications under 5G (5th-generation
mobile communication system), there is increasing
demand for information infrastructure equipment

The market for composite materials, commodity
yarn, and glass wool insulation has been heavily
impacted by the COVID-19 pandemic, which caused
a reduction in automobile production and delay orsuspension of work on residential, hotel, office, andother construction projects. Although there is noclear prospect for an end to the COVID-19, we areresolved to keep a close eye on changes in thebusiness environment and to respond decisively toemerging issues with optimal measures.

Nittobo’s Value Creation

Taking the customer

Under the impact of the COVID-19 pandemic, theGlass Fiber Division has seen a polarization of results.
Coinciding with the rise of 5G-based high-speed,large-volume telecommunications, the pandemic has
accelerated the trend toward social digitization,
particularly in the form of remote working and theswitch to online solutions. As a result, demand forSpecial Glass has continued to boom throughout the
COVID-19 pandemic. We will therefore move ahead
with our plans to increase the number of melting
furnaces in Japan and to construct a new factory in
Taiwan while keeping a close watch on market trends
going forward.

27

Glass Fiber Division

Two important properties of glass are insulation and heat-resistance. Glass yarns processed into cloth have become

Glass Fiber Yarn Business

indispensable as an electrical insulating material for printed wiring boards. Nittobo possesses proprietary technology

Glass fiber yarns

to manufacture superfine yarns with world-class precision, along with special yarns with such functionality as lowdielectric and low thermal expansion properties.
Strengths  Manufacturing technology for the world’s most precise yarns (3.5μm)
Development and manufacturing of low-dielectric and low thermal expansion Special GlassThe Glass Fiber Yarn Business manufactures and sells glass fiber yarn, as well as roving and chopped

Supply Chain

strands used as base materials of composite materials.
Yarn

Products Manufactured

Glass fiber yarn

Glass fiber cloth

Glass Fiber
Electronic Glass Fiber Yarn Cloth segment
segment
materials
Glass cloth
manufacturers

CCL (copperclad laminate)
manufacturers

Glass Fiber for
Industrial
Materials
segment

Various
manufacturers

Industrial Glass Fiber Yarn
segment
materials

Printedwiring board
manufacturers

Semiconductor
manufacturers

Smartphone, PC,
and otherfinished productmanufacturers

Nittobo’s Value Creation

Business
Description

Nittobo Group

Melting furnace
Main
Products

Forming winder

Glass fiber cloths

Glass fiber yarns

Glass fibers for composite materials

Printed wiring boards

Smartphones, PCs, etc.

Glass fiber yarns

Special composition

Investment Domains

Multi-end roving

Glass fiber forcompositematerials

Chopped strands

Cut fiber

Chopped strand mat

Rovings and chopped strands are used for reinforcement of a wide range of products, including casings for smartphones,
tablets, and notebook PCs, along with helmets, automotive parts, bathtubs, plastics and other consumer products.
Strength

For more information on major investment projects, please see page 19.

Flat fibers (FF) with an oval shape cross-section to control the warping and twisting of molded products

Bathtubs

Chopped strands

E-glass
ultrafine tocount yarn

E-glass thick count(commodity use)Fine
count/
thinmaterial

Nittoboʼs strengths
Commodity composition
Priority investment in expansion of production capability of high valueadded products (E-glass ultrafine to fine count yarn and T/NE glass, etc.)

Social andEnvironmental
Contributions

Nittobo’s glass fiber contributes to thinner and more compact dimensions in electronic devices such as
smartphones and to lighter weight in automobiles and aircraft.

FY2019 BusinessResults

In the area of glass yarn for electronic materials, the operational start of new Special Glass melting furnaces allowed
us to begin sales of NE-glass yarn and recovery has been observed in sales of ultra-fine yarn for smartphones, but
sales of commodity yarn were slack. Composite materials for reinforced plastics continued to face difficult market
conditions. Given the additional impact of an increase in personnel and depreciation costs in line with our policyof strengthening our business foundation, a fire accident at our consolidated subsidiary Fuji Fiber Glass Co., Ltd.,and flood damage at our Fukushima Factory caused by a typhoon, the result was a decline in profit.

Casings for
smartphones

Business Result Highlights

Flat Fiber (chopped strand)

Net sales

Operating profit(million yen)(million yen)

30,000Circular (regular) fiber

Flat fiber (oval shape)

26,806

26,75829,172
26,44225,0176,000

Reduced warping in composite panel made with flat fiber

6,559

7,000

4,803

5,235

5,000

20,000

3,937

4,000

Data Section

Based on unique technology development, Nittobo’s flat fiber ishigh-performance chopped strand that uses fibers of modified
cross-section. The cross-section of regular fibers is circular, but inflat fibers it is oval-shaped. Because of this shape, these chopped
strands exhibit diverse characteristics as base materials forinjection molding.

Thickcount/
thickmaterial

T-glass (low thermal expansion)
NE-glass (low-dielectric constant,
low-dielectric dissipation factor)

3,091

3,000
10,000Circular fiber

Nittobo Group

2,000
1,000

Flat fiber (FF)028Foundation for Value Creation

Main
Products

RovingUnder its “Long-term Vision 101,” the Nittobo Group’s vision for the Glass Fiber
Division is to solidify its leadership in the glass fiber industry by maintaining astable supply of high value-added products to customers amid dramatic change
in the industry environment. To achieve this vision, we are bolstering ourcapabilities in electronic materials field. Our initiatives include building ourSpecial Glass development capabilities and production capacity, advancing our
superfine yarn spinning capabilities, and expanding our glass cloth business at
Baotek Industrial Materials Ltd., a Taiwanese company that we converted into a
consolidated subsidiary.

Strategies for Value Creation

Direct roving

FY15

FY16

FY17

FY18

FY19

0

FY15

FY16

FY17

FY18

FY19

Integrated Report 2020

29

Glass Fiber Division

Glass Fiber Cloth Business
Nittobo’s Value Creation

Nittobo Special GlassBusiness
Description

Glass cloth is widely used as an electric substrate material because of its superior electric insulation, heat
resistance, and dimensional stability. Nittobo’s ultra-thin glass cloth provides superior thinness and fiber
distribution consistency, making it ideal for compact but highly functional electric devices. Our Special Glass

Glass cloth for
printed wiringboardscloths are developed using unique compositions and feature low-dielectric constant and low-dielectric
dissipation factor required in broadband communications, as well as low thermal expansion. These properties
make the cloths vital components of data center equipment, mobile phone base stations, high frequency
components, and semiconductor packages for servers and smartphones.
Strengths Technology for making ultra-thin glass cloth

Spread-out technology to unravel strands in woven glass cloth

High-performance binder technology
For more information on the supply chain, please see page 29.

Main
Products

Glass fiber yarns

Printed wiring boards

Glass fiber cloths

Image of Glass Fiber Cloth Application

Smartphones,
PCs, etc.

Dielectric constant(1GHz)

Dielectric
dissipation factor(1GHz)

E-glass

6.8

0.0035NE-glass

4.8

0.0015T-glass, another type of Special Glass, features low
thermal expansion as well as high tensile elasticity. T-glass isused for semiconductor package substrates installed inservers, which require high stability and reliability, and insmartphones and other devices which are becoming
increasingly compact and functional.
Thermal expansion
coefficient(×10-6/˚C)

Tensile elasticity(GPa)

E-glass

5.6

75

T-glass

2.8

86Strategies for Value Creation

Fifth-generation mobile communication system (5G) will
enable processing and transmission of large amounts of data
without latency, along with the simultaneous connection ofa massive number of devices. Low-dielectric glass which
reduces transmission loss is one of the technologies requiredfor printed wiring boards in electronic devices. These
technologies make it possible to transmit data at higher
speeds and frequencies. In addition, higher speeds andfunctionality of electronic devices generate more heat on the
precision wiring boards. As such, 5G requires new types ofglass which can minimize thermal expansion.
Nittobo Special Glass uses unique glass fiber which cansupport 5G technological innovation.
NE-glass is made from glass fibers specially designed witha low-dielectric and low-dielectric dissipation factor which
prevent data transmission loss. NE-glass is used as highfrequency components in data center servers and mobile
phone base stations which require high-speed processing oflarge volumes of data.

The Glass Fiber Cloth Business produces glass cloth used as electronic materials.

These Special Glass products have become essential
components of mobile phone base stations and othercommunications infrastructure as well as highly functional
servers. Nittobo Special Glass is lauded worldwide for its
performance and quality. As we enter a new era in AI,
automated driving and other new technologies, theexpectations for Nittobo Special Glass will increase. We will
strive to maintain a stable supply of Special Glass tocontribute to the realization of innovative technologies.

Diagram of Substrate Cross-section
Chip

3

1
2
3
4

4

5

5

Surface layer circuit
Insulation layer(resin-impregnated glass cloth)

Inner layer circuit
Insulation layer(resin-impregnated glass cloth)Surface layer circuit

Copper foil
Resin
Cloth
Resin
Copper foil
Resin
Cloth
Resin
Copper foil

Substrate for semiconductor package(glass cloth used)2

Social andEnvironmental
Contributions

Glass cloth made from Nittobo Special Glass is used as a low-dielectric substrate for electric components, helping
to realize the next-generation telecommunication standard 5G.

FY2019 BusinessResults

We continued to see booming demand for Special Glass for the electronic materials that facilitate high-speed,large-volume telecommunications, while the addition of new melting furnaces in the Glass Fiber Yarn segment led
to an expansion in sales of Special Glass cloth in the Glass Fiber Cloth segment. The inclusion of Baotek Industrial
Materials Ltd. as a consolidated subsidiary also boosted net sales.

Foundation for Value Creation

1

Substrate forsemiconductor
packageBusiness Result Highlights
2
3

Motherboard
4

6
7

Insulation layer(resin-impregnated glass cloth)

Inner layer circuit
Insulation layer(resin-impregnated glass cloth)

Inner layer circuit
Insulation layer(resin-impregnated glass cloth)Surface layer circuit

Copper foil
Resin
Cloth
Resin
Copper foil
Resin
Cloth
Resin
Copper foil
Resin
Cloth
Resin
Copper foil

Net sales

Operating profit(million yen)(million yen)

20,000

Nittobo Group

4,000

14,22815,00013,7502,959

14,0433,000

10,000

2,000

5,000

1,000

0

30

19,843

17,792

FY15

FY16

FY17

FY18

FY19

0

FY15

2,919

2,784

FY16

2,130

2,031

FY17

FY18

Data Section

5

Surface layer circuit

Motherboard
glass cloth used)

1

FY19

Integrated Report 202031

Glass Fiber Division

Glass Fiber for Industrial Materials Business
Nittobo’s Value Creation

Industrial-use glass fiber has a wide range of applications, from membranes for large-scale buildings to damping
materials for automobiles. Leveraging the lightness and fireproof properties of glass fiber, we continue to develop
Business
Description

Industrial-use
glass fiber

The Glass Fiber for Industrial Materials Business manufactures and sells glass wool as a residential

new applications in the automobile and aircraft industries to serve the demand for energy efficiency andlightweight materials.
Strengths High-strength, weather-resistant membranes using superfine glass fiber

heat-insulating material for industrial applications and glass fiber in the form of glass cloth andWorld-class broad-cut membranes

braided glass cloth for industrial and construction materials.

In 1949, the Nittobo Group became the first Japanese company to manufacture glass wool. Today, we remain apioneer in the field with an extensive portfolio of proprietary technology. Glass wool is used widely as insulationmaterial in residences and buildings, contributing to energy efficiency. Moreover, glass wool is an environmentally

Glass wool

Main Product Groups

friendly product contributing to resource recycling, as the raw materials include discarded bottles and glass windows.

Interior furnishings

Strengths Proprietary precision fiber technology for high insulating effect and energy-efficiency housing

Exterior furnishings

Automobiles and aircraft

Construction

Formaldehyde-free insulation for human-friendly housing

Light shades

Surface cloths

Tent films

Vibration-damping materials

Back-lit signboards

AircraftConcrete corrosion-proofing
Strategies for Value Creation(illumination covers)

and reinforcement

External wall reinforcement

Main Products

Applications

Insect screens

Glass wool insulation

Roll-up blinds

Glass wool board forinterior finish

Glass wool’s use as a heat-insulating material contributes to the creation of an energy-efficient society, while its
use of recycled glass as a raw material contributes to resource saving.
Tent films

Roll-up blinds

Recycling in the
Manufacturing
Process

Glass wool is a CFC-free heat-insulating material that does not use a CFC alternative. It is made withenvironment-friendly recycled glass using advanced technology and is a designated item under Japanese green
purchasing legislation.

80%

FY2019 BusinessResults

Vibration-damping materials

Coating film waterproofing

In addition to reduced sales of glass fiber and glass wool, other factors, including an increase in depreciation costs
due to capital investment, resulted in a decline in profit.

Foundation for Value Creation

Social andEnvironmental
Contributions

Coating film waterproofingor more of the raw material
used in manufacture is recycled glass

Recycle processing
within factory
Commercial
recycling

Sorting andcollection

Material offcuts generated
in manufacturing process

Back into
glass wool
products

Use as heat-insulating
material in buildings, etc.

Recycling withinfactory
Recycleprocessing

Into glass wool products

Business Result Highlights
Net sales

Operating profit(million yen)(million yen)

25,00021,831

22,072

21,622

21,785

21,39620,000

2,000

1,821

1,872

1,500

Summer
WinterContribution to energyefficient society
Example of use asheat-insulating material

32

Nittobo Group

Blocking
sunlight

Solar power
generation

Highly efficient air
conditioning
Highly efficient
lighting (LEDs, etc.)

Cool airHighly efficientwater heating

Understanding of
power volume

Highly-insulated
windows

HEMS
Highly-insulated
outer skins

Electricity storage
systemDiagram: Net-Zero Energy House(ZEH) proposed by Agency
for Natural Resources andEnergy, Ministry of Economy,
Trade and Industry* ZEH promotes housing with both a
comfortable interior environment
and an annual net energy
consumption of zero or less.

831

1,000

629

10,000

444
500

5,000

0

Data Section

15,000ExhaustEnergy-efficientventilation

FY15

FY16

FY17

FY18

FY19

0

FY15

FY16

FY17

FY18

FY19

Integrated Report 202033

Life Science Division

Impact of COVID-19

Strengthen our global value

Previously, our in vitro diagnostic reagents had
remained relatively unaffected by economic
fluctuations but COVID-19 has upset this status. The
number of hospital visits has fallen sharply as people
attempt to avoid infection, while the regular healthcheckups carried out at corporate and educational
institutions have been postponed or canceled,chain to grow the Medical
Business into the second pillar

contributing to an unprecedented slump inshort-term demand. Having bottomed out in thesecond quarter of fiscal 2020, demand is now on arecovering trend, but as this is not a business wherea rebound due to delayed demand can be expected,
a negative impact on business results is unavoidable.

Strategies for Value Creationof the Nittobo Group

Confronting new Social Needs

Tatsuo Sakae
Executive Officer
General Manager of the Medical Division
Chairman and CEO of Nittobo America Inc.

Review of Fiscal 2019are the two arms of the integrated production system
we have put in place as an essential feature of the
distinctive Nittobo business model. This system gives
us great advantages when it comes to ensuring thestability of both quality and supply. As products
derived from biological sources, immunologicalreagents are inevitably subject to quality variation,
but the Nittobo Group’s integrated production
system allows us to minimize this variation tomaintain a high level of quality.

Challenging conditions continue in the short term,
but as the in vitro diagnostic reagents sector is abusiness concerned with human health, global
expansion is certain in the medium to long term. In
developed countries, high-performance diagnostic
reagents are sought that can detect the signs ofdisease more accurately and at an earlier stage. In
emerging countries, demand for diagnostic reagentsis rising due to population increase and economic
growth, particularly in Asia. Across all markets, there
is a common trend toward rising living standards andheightened health awareness, combined with a shift
from treatment to prevention. By making optimal useof its value chain, the Nittobo Group will steadily
capture the resulting increase in global demand.
We believe that the current COVID-19 pandemic
marks a potential major turning point that could
transform medical treatment-related businesses andsee the emergence of new social needs. With people
now avoiding face-to-face contact, the conventional
practice of visiting a clinic for medical attention may
change in favor of remote consultation systems. A
possible business model is one that makes it possible
to undergo testing and diagnosis without leaving
home, followed by online prescription and homedelivery of medication based on the findings. As anin vitro diagnostic reagent manufacturer, we need toconsider going forward how we can best contributein such a scenario and how to respond flexibly to thechange. This means swiftly identifying trends indigitization and putting in place a system that can
respond to future social needs. To fulfill the Nittobo
Corporate Philosophy of creating healthy andcomfortable lifestyles, we will continue with boldinitiatives in the Medical Business based on strengths
that our competitors cannot emulate.

Foundation for Value Creation

The Nittobo Group’s in vitro diagnostic reagents haveearned us a reputation within the industry as‘Nittobo the Immunology Specialists,’ with aparticularly strong presence in the field of
immunological diagnostic reagents. Our U.S.-based
subsidiary Nittobo America Inc., engaged at the
upstream end of the value chain in manufacture andsale of antisera, and Japan-based NITTOBO MEDICAL
CO., LTD., engaged in the downstream processes ofmanufacture and sale of the end-product reagents,

Another important development was ouracquisition of the antisera manufacturer and sales
company Capricorn Products LLC (Maine, U.S.A.).
This places the Nittobo Group beyond the reach ofcompetitors in its global market share of goat antisera.

Nittobo’s Value Creation

In fiscal 2019, we posted major sales expansion,
mostly in overseas markets, for the antisera produced
at our U.S. sites, which boosted overall profit. This isa great achievement indicating that Nittobo America
Inc., which had previously functioned only as a raw
material production site, has grown to become aprofit center.

FOCUS ON
Strengthening our Global Value Chain in the
Medical BusinessFar upstream
Strengthening of R&D functions in antigens
and antibodies

Upstream
Expansion of antisera production for
raw material

Rimco Corporation (Uruma City, Okinawa):

Capricorn Products, LLC (Maine, U.S.A.):

Investment made August 2018

Acquired June 2019

Frontier Institute Co., Ltd. (Ishikari City):

Nittobo America Inc. (California, U.S.A.):

Acquired March 2019

Completion of a new factory due second half 2022

Mid-stream
Expansion of in vitro diagnostic
reagent production sites
NITTOBO MEDICAL CO., LTD. (Koriyama City,
Fukushima):
Construction of new factory, completion due
December 2021

Downstream
Access to global pharmaceuticalregulatory clearance expertise andacquisition of sales networks

Data Section

Under the current Mid-term Business Plan, we have sought to build an extensive
global value chain with high capacity and resilience by implementing mergers andacquisitions and conducting capital investment. The result is a unique global businesssystem integrating all operations from research and development to sales. Goingforward, to grow the Medical Business as the second pillar of the Nittobo Group,
we will move energetically to expand sales overseas as well as in Japan.

Building a global integrated production system

Kamiya Biomedical Company, LLC(Washington, U.S.A.): Acquired March 2019

FAN Co., Ltd. (Chiyoda City, Tokyo):
Jointly established April 201934

Nittobo Group

Integrated Report 202035

Life Science BusinessIn the specialty chemicals products business, the Group engages in the development and sale of highly unique

Specialty chemicals
products

Nittobo’s Value Creation

functional polymers such as polyallylamine and the polyamine series. We research, develop, manufacture, and sell
highly unique products to customers with high entry barriers in a wide range of industry sectors, such as toiletries,
papermaking, metals, electronic materials, and generic drugs.

Business
Description

Life Science Business manufactures and supplies in vitro diagnostic reagents and antisera, specialty
chemicals products, and soft drinks.

Product groups

In vitro diagnostic reagents are used for tests done on samples such as blood and urine that have been taken from thebody to diagnose illnesses at health checkups and visits to doctors. These reagents are used to measure the levels ofcertain substances in the samples and are not used directly on the human body. Results of these tests done in

In vitro diagnostic
reagents

hospitals and commercial laboratories are referred by doctors for deciding on courses of treatment.
Strengths

Applications

Electrolytic plating

Acid corrosion
inhibitor

Metal processing cutting
oil additive

Surface-protective
agent SSG®

Anti-fouling

Anti-corrosion
coating

Solid natural wood
protection

Water treatment
agentsWastewater
treatment

Metal scavenger

Decoloring

Auxiliary agents for
textile processing

Dye-fixing

Friction fastness
improverDeep-coloring
Strategies for Value Creation

 n integrated production system from raw materials to finished products allows the Nittobo Group to stablyA
supply a variety of high quality products
The Nittobo Group has the top market share in Japan for a variety of items, such as inflammation biomarkers
and an osteoporosis biomarker, while distributing more than 100 types of diagnostic reagent kits

Category

Auxiliary agents formetal processing

In the soft drinks business, we specialize in high-variety, small lot production to meet the needs of individual brandSoft drinks

Flow Chart of In Vitro Diagnostic Reagents

following recipes and rapidly switching between product types.

Raw materials
production

Production / sales

Antigens, antibodies,
antisera

In vitro diagnostic
reagents

AntiseraGroup companies

Supplying products
to hospitals
and commercial
laboratories
worldwide
In vitro diagnostic reagents

Group companies
NITTOBO MEDICAL CO., LTD.

F rontier InstituteCo., Ltd.

 ITTOBO MEDICAL
N
CO., LTD.

Hospitals and commercial
laboratories (Domestic)

FAN Co., Ltd.

Rimco Corporation

 amiya Biomedical
K
Company, LLC

Hospitals and commercial
laboratories (Overseas)

Social andEnvironmental
Contributions

The Nittobo Group helps create healthy lifestyles for people around the world through the supply of
immunological in vitro diagnostic reagents and antisera.

FY2019 BusinessResults

In the in vitro diagnostic reagents business, we achieved strong sales performance, particularly of immunologicalreagents, through initiatives to expand sales in Japan and overseas. In the specialty chemicals products business,
we maintained stable supply in Japan and overseas, with the main focus on high value-added products. In thesoft drinks business, we continued responding to multi-item small-lot demand across a wide range.

Other companies

Nittobo America Inc.
Nittobo America Inc. produces high quality goat antisera in three facilities in the U.S. These antisera are supplied to NITTOBO MEDICAL CO.,LTD. and other manufacturers worldwide as raw materials for in vitro diagnostic reagents for immunological tests.
Kamiya Biomedical Company, LLC, a wholly owned subsidiary of Nittobo America Inc., was established in 1983 in the U.S. andmanufactures and distributes in vitro diagnostic reagents today. With its home base in the world’s largest medical market, Kamiya Biomedical
boasts sales networks spanning the globe.

NITTOBO MEDICAL CO., LTD.

Business Result Highlights
Net sales

Operating profit(million yen)(million yen)

16,00012,386

Nittobo Group

13,692

15,0523,000

12,000

2,250

8,000

1,500

4,000

750

0

36

12,447

12,992

FY15

FY16

FY17

FY18

FY19

0

2,663

2,813

2,858

FY16

FY17

2,644

2,878

Data Section

NITTOBO MEDICAL CO., LTD. manufactures and sells in vitro diagnostic reagents including those made from goat antisera. Its core strengthlies in reagents for immunological tests, utilizing antigen-antibody reaction. Since its establishment in 1987, NITTOBO MEDICAL has stably
supplied a variety of high quality in vitro diagnostic reagents, and by today, it has gained a stature known as “Nittobo the Immunology
Specialists” in Japan.

Foundation for Value Creation

Nittobo America Inc.

owners through OEM production of private brands. We pursue differentiation from competitors by meticulously

FY15

FY18

FY19

Integrated Report 202037

Textile Division

trajectory by expanding our
proprietary technologies to a

Mitsuhiro Kato
General Manager of
the Textile Division

Review of Fiscal 2019environment. The response in Japan, which included
the voluntary closure of department stores andshopping centers and avoidance of public places, has
had a great negative impact on the whole of the
textile industry. Nevertheless, we are confident thatthe structural reform we pushed through in fiscal
2019 was absolutely the right strategy and has laid
the foundation for the regeneration of our textile
business. So as to achieve further growth in the
post-COVID world, we will continue working tostrengthen all business functions.

Impact of COVID-19

38

Nittobo Group

dampened the inclination to buy new clothes. Even
when the COVID-19 pandemic is over, demand will
not necessarily return to pre-COVID levels, and wehave discussed intensively how we should develop
our business operations in order to regenerate thetextile business. The conclusion we have reached is toreturn to our roots, in other words, to emphasize our

Nittobo’s proprietary technology is the resource fromwhich we generate products that contribute tosociety. One of our core technologies and a major
strength is the adhesive technology for coating fabricwith adhesive resin in a uniform dot pattern. Thisadvanced technology can be applied in a wide rangeof fields, and we think it will play a very importantrole in supporting the future of our Textile Business.
As difficult conditions continue in the high-end
ladies’ apparel market that is our main target, in
addition to focusing on the apparel field, we need toprogressively expand our scope to new fields. The
key to this is the application of adhesive technology
to industrial materials. To unlock this new domain,
we have strengthened coordination with the
Research & Development Headquarters and the Glass

Fiber Division. In this way, the Nittobo Group will
come together in initiatives to leverage the coretechnologies of the Textile Business and place it on a
growth trajectory.
COVID-19 is likely to bring about a change in thekinds of product the market requires. There will
however be no change in our practice of listening
attentively to customers, which has been one of themost important elements of our approach. In the
post-COVID world, the creativity to identify the needsof our long-standing customers and respond by
developing products will be increasingly important.
By applying the proprietary technologies of our
Textile Business to a wide range of fields, we will
progressively realize our full potential.

FOCUS ON
Development of Interlining and Inner Materials Friendly to the
Global Environment
The Textile Division is progressing with environment-friendly product development as a leading
player in the interlining business. We have already begun sales of standard-type products
made with recycled raw materials. In 2020, we deployed the thin fabric processing technology
which is one of our strengths to develop a 13-decitex* nylon product and a 17-decitex
polyester product, both among the world’s lightest weights for a recycled textile, and a
13-decitex nylon product which is also in the lightest grade for nylon synthesized fromplant-derived raw material. We plan to acquire certification under the Global Recycled
Standard (GRS) in the fall of 2020 and are expanding sales to sports brands. Going forward,
we will work to develop sustainable products from a wide range of perspectives with the aimof reducing environmental burden.

Interlining made with recycled nylon
inner material/ bio-nylon* Decitex: unit of thickness for yarn indicating the weight per 10,000 meters; the lower the decitex count, the finer
the yarn.

Data Section

After the trough of spring 2020, when demand hit
the low point, there is now a basic trend to recovery,
the pace of which remains slow, however. In
addition, the changes in people’s lifestyles havealtered consumer behavior. One example is thenormalization of remote working, which has reduced
people’s reasons for going out in public and thus

Leveraging Our Strengths to Switch to a Growth TrajectoryFoundation for Value Creation

In fiscal 2019, we have transferred the equity ofChinese manufacturing site Nittobo (China) Co., Ltd.,to raise efficiency by consolidating interlining
production in Japan. Additionally, by implementing
cost reductions and rationalization across allfunctions from development and production to sales,
we laid the foundation for a return to profitability.
However, just when we had established the prospectof returning to a positive operating profit balancefrom fiscal 2020 based on the market launch of highvalue-added new products, the COVID-19 pandemic
caused a dramatic change in the business* The OEKO-TEX® STANDARD 100 certificate is the world’s strictest safety
standard for textile products, with certification granted only to productsthat have passed stringent analytical tests for over 350 harmful chemical
substances. Class 1 designates products for use in babies and infants and is
the category with the strictest conditions.

Strategies for Value Creation

wide range of fields

system, which means it can also be used for babies
and infants.
The business environment is challenging, but
going forward, we will use Nittobo’s unique
technology as the basis for continuing to develop
new high value-added products that meetcontemporary needs. In this way, we will appeal to a
global market.

Nittobo’s Value Creation

Switch to a growth

Corporate Philosophy of creating healthy andcomfortable lifestyles to contribute to the realizationof prosperous communities.
A topical example of this is how our textile
business responded to the spread of COVID-19: after
considering how we could contribute, we developed
an interlining that can be used safely in face masks.
Fitting Nittobo’s adhesive interlining in a home-madecloth face mask helps it to retain shape even after
washing. So that people can use it with fullconfidence, our product became the first interlining
for face masks to be recognized under Class 1 of the
OEKO-TEX® STANDARD 100 safety certification

Integrated Report 202039

Textile Business
Nittobo’s Value Creation‘C·S·YTM’ (core spun yarn) is a multilayer structured yarn in two or three layers combining staple fibers andBusiness
Description

polyurethane to create innovative stretch fabrics. Its applications are broad, from denim, suits, socks and other daily

Raw yarn

In the Textile Business, Nittobo manufactures and sells auxiliary materials for clothing, raw yarns, andapparel to bandages for use in medicine and sports.
Strengths World-class technology in multilayer structured yarn coveringother products closely connected to our daily lifestyles. Our adhesive interlinings command a large sharein the high-end ladies’ apparel market, while our multilayer structured yarns are pushing the boundaries
of stretch materials. Nittobo Dishcloth™ has been a consumer favorite for more than sixty years.

Multilayer Structured Yarns

Nittobo Dishcloth™

Combining fibers with different properties in two- to three-layered
structures produces multiple functions

Created through joint researchwith Kurashi-no-techo Co., Ltd.,
this is a long-selling productwhose popularity stretches backover 60 years. In 2015, itreceived the Good Design Long
Life Design Award.

Interlinings are an auxiliary material for clothing used between the outer and inner materials to retain and adjust

Cotton with superior feel

clothing shape

Interlinings

StrengthsP rocessing and adhesive technology to produce the world’s thinnest, lightest interlinings
Development of products with deodorizing, antibacterial and other functions, along with products reducing
the environmental burden

Strategies for Value Creation

Stretchable polyurethane fabricAdhesive Interlinings

Rollout to Industrial Materials
We are collaborating with the Glass Fiber Division in the rollout ofadhesive technology to industrial materials

Paper-core yarn ‘pa·pia’Adhesion to a wide range of materials

Using Japanese
paper in the coreproduces adistinctive texture

Adhesion between
different materials
FabricInterliningInnermaterial

Social andEnvironmental
Contributions

Firm adhesion between different materials

separated
into

Apparelsections using
interlinings

In the Textile Business, we have enhanced the range of interlining
products that are friendly to the global environment. The main items
contributing to reduction of environmental burden are formalin- andfluorine-free interlining and sustainably produced interlining madewith recycled polyester yarn and solution-dyed yarn.

Uniform adhesion with very small amounts of resin

Environmentallyconscious productcatalogue “For
Sustainability”

Adhesive resin

1

2

g/m

Innovative Fabric™
Materials used for both inner materials and interlining

High adhesive strength with a small amount of resin

Applying our proprietary adhesive dot processing technology tofunctional materials enhances functionality

Net sales

Operating profit or loss

(million yen)(million yen)

2

Nittobo Group

4,950

4,945

1,000

4,862
3,616

4,000

layers

500

0
2,000

A single process produces two layers,
each with a different functional chemical
0

40

5,568

Data Section

Function B

Net sales declined due to the transfer of equity of Nittobo (China) Co., Ltd., and the stagnation of the market. In
contrast, the permeating effect of price rises and the transfer of production from China to Japan had a positive
impact on profit.

Business Result Highlights

6,000

Layering of functions

Function A

FY2019 BusinessResults

Foundation for Value CreationOutermaterial

FY15

FY16

FY17

FY18

FY19

(500)

(483)

(1,000)

FY15

(366)

FY16

(452)

FY17

(373)

FY18

(221)

FY19

Integrated Report 2020

41

ESG Initiatives

Environment

The Nittobo Group aims to become a good corporate citizen and “Best Partner” of communities.

Environmental Initiatives

The Nittobo Group is aware of its responsibilities as a corporate

communities, and we attach importance to sharing satisfaction

citizen and addresses CSR issues with the aim of “contributing

with all of our stakeholders (communities). In keeping withto the realization of prosperous communities,” a principle

these values, we will seriously address environmental and social

embodied in the corporate philosophy.

issues and ceaselessly strive to improve governance in order toAs articulated in the Nittobo Declaration, which expresses

contribute to society by creating value through our businessshared values fundamental to being a corporation trusted by

activities, and achieve enhancement of corporate value andsociety, the Nittobo Group aspires to be a “Best Partner” ofsustained growth.

Nittobo’s Value Creation

Responsibilities as a Corporate Citizen

The Nittobo Group is aware of the importance of global environmental problems, and we havedeveloped a code of conduct specifying voluntary, proactive engagement in energy
conservation, effective use of resources, pollution prevention, and other environmental
conservation activities for the purpose of creating and maintaining a better environment, arequirement for business continuity. In accordance with this philosophy, we have establishedthe Nittobo Environmental Charter and Company-Wide Environmental Policy and are striving
for continuous improvement of the environment.

Nittobo Environmental Charter
Guiding Principle
In all our corporate activities and business development efforts, we, the Nittobo Group, will contribute to handing down theirreplaceable global environment to the next generation and ensuring sustainable development by providing environmentallyconscious products and services and taking the needs of the environment into consideration in our activities.

Action Guidelines

Solutions to environmental problems through businesses and products
Continuous efforts to reduce environmental impacts

Social1

Environmental
protection

Aim at improving theenvironment continuously
and coexisting with thelocal community by
striving to reduce
environmental impacts
in a systematic way.

2

Environmentallyconscious
corporate activities

Compliance withenvironmental policy
and voluntary
management

3

Promote energy-saving,
resource-saving, recycleoriented, and environmentallyconscious operations in all
business domains in Japanand abroad.

Conform to laws andregulations in addition to otherrequirements and principles aswell as stipulate voluntary
environmental policy andmanagement standards andwork toward achieving them.

4

Periodic audits

Conduct periodic
environmental audits toverify theappropriateness ofmanagement standards
and improve
environmental andsafety management toraise such standards.

5

Training andeducation

Provide all employees withthorough environmental andsafety training and raise theirenvironmental and safety
awareness levels mainly bymaking environmental and safety
policies known to them, andstrive to hand down the global
environment to posterity
Established on October 1, 1998
Revised on July 1, 2005

Harmonious coexistence with local communities
Human resource utilization (promoting diversity and women’s participation)

Company-Wide Environmental Policy

Contr
ib
huma utionnkitne nv d a
iro
n

ling
cyc
y
iet

m

un

fp

sa

iti
e

eo

fe

s

ple

’s

e
w
ith
ul
at
ion lawssEnsure appropriate management of
hazardous substances and strive to reduce
their discharge to the environment.

nd

c
an
pli regmCodan

We comply with environment related
laws and regulations and regional
agreements to realize
zero environmental risk.
Integrated Report 2020

43

Data Section

o
g
a
rin
th
S ec u
l
a
m
he
co
al

loc

Strengthening of risk management

Nittobo GroupreConstant review of governance in pursuit of fair and highly transparent management
Rigorous compliance42

We aim to achieve zero emission
through emission control and positive
use of recycled raw materials.

Con
stru
cti
o
ori
en n otedcso

Governance

re of
utu
f
e
bal
th e gloothnd entmfa

To ensure Nittobo continues to develop as a corporate group thatretains the trust of society, the Group has put in place a corporate
governance structure to rigorously comply with all laws, regulations
and corporate ethics.

We strive to control carbon
dioxide emissions bystreamlining energy use.

Foundation for Value Creation

The Nittobo Group believes it is important to develop in harmony withlocal communities through its business activities and promote open
communication with local communities as a good corporate citizen.
That thinking underpins the Group’s CSR activities.

Strategies for Value Creation

Environment

The Nittobo Group is aware of the importance of global environmental
problems, and we are actively engaged in voluntary efforts to saveenergy, use resources effectively, prevent pollution and otherenvironmental conservation activities for the purpose of creating andmaintaining a better environment, a requirement for business continuity.

Environment

Environmental Impacts of the Nittobo Group
using natural resources and chemical substances as raw

landfill sites. The Nittobo Group is striving to reduce
environmental impacts by using resources in a reasonable way

result of energy consumption, chemical substances that are

while taking the needs of the environment into consideration.

8.9% reduction

3.65
315

353

3.69
312

3.60
297

3.74
320

4.0

3.0

300

151

INPUT

143

172

1

Energy input*

172 thousand kiloliters

Energy derived CO2
emissions*3

320 thousand tons

Input of main raw
materials

Rawmaterials

Amount of recycledgoods received*2

Recycled
goodsamountreceived

46 thousand tons
Amount ofwithdrawal water

11.33 million m

3

Nittobo

Products

Group

Amount of Industrial
waste disposed*4 of

15 thousand tons
RecyclingAmountrecycled*5

41 tons
Amount of water
discharged

5.76 million m

3(62.8%)

852

854

2.0

368

400

154

148

1.0

329

43

200

FY13

FY14

FY15

FY16

FY17

FY18

FY19

0

Disposal of industrial waste (t)Recycling rate (%)

0

FY13

PRTR substances emitted (t/yr)
PRTR substances handled (t/yr)

60.1% (FY19)

2,881
100

73.8

73.9

72.1

69.4

60.1

75

10,0009,536

12,122

11,145

13,904

11,841

15,085

FY14

FY15

FY16

FY17

FY18

FY19

0

Chronological changes in the amount of withdrawal water
Withdrawal water (1,000,000 m3)
Withdrawal waterWithdrawal water by Nitto Beverage Co., Ltd. (1,000,000 m3)
Per unit of consolidated net sales% reduction(10,000 m3 /10 billion yen)
per unit of sales (vs FY13)

12.0

95.2

94.9

98.5

101.0

85.0

11.10

8.83

8.56

7.33

0

8.53

8.10

8.87

The Nittobo Group uses large amounts of energy in glasson the next page. Overall, environmental load has increased

emits carbon dioxide (CO2). For this reason, the Group hasfrom the previous fiscal year due to the consolidation of Baotek

reduced CO2 emissions by converting glass melting furnace fuelIndustrial Materials Ltd., but energy-derived CO2 emissions perfrom heavy oil to utility gas and by installing oxygen

unit of consolidated net sales have declined 8.9% compared

combustion systems at Group factories.

with the fiscal 2013 level. We have reduced the total amountthanks in part to the installation of oxygen combustion

combustion efficiency of melting furnaces and other equipment

systems. Also, the recycling rate is 60.1%.

44

Nittobo Group

3,000

2.27

2.38

2.38

2.34

2.38

2.47

2.46

FY13

FY14

FY15

FY16

FY17

FY18

FY19

25

0

2,000

31

41

1,000

FY14

FY15

FY16

FY17

FY18

FY19

0

250

5.31

5.63

Water pollutants

24.6% reduction in total amount (vs FY13)
5.62

5.31
5.77

(24.6%)

199

200

116

5.76
6.0

5.93

150
114

113

102

88

3.0

23

1.5

94

77

38

19
35

23
33

39

FY16

FY17

FY18

FY19

35

31

29

50

28

48

45

41

0

FY13

FY14

FY15

4.5

0

Amount of Scope 3 emissions by the Nittobo GroupIn fiscal year 2017, the Nittobo Group started to calculate the amount of greenhouse gas emitted (Scope 3) in its value chain.
The results for fiscal year 2019 are as follows:

The Group will continue to work in unison to reduce
environmental impacts.

Category
Category 1

Products and services
purchased

Category 2

Capital goods

Category 5

Waste

Category 6

Business trips

Category 7

Commuting to/from work

Category 9

Transport and delivery(downstream)Amount of CO2
emitted (t-CO2)

107,30287,756
592
350
226
3,384

Calculation method
Calculated by multiplying the purchase prices of the top 70% of products and services purchased bybusiness sites by the CO2 unit value stipulated in the guidelines
Calculated by multiplying the amount of capital goods (buildings, structures, machinery, and equipment)by the CO2 unit value stipulated in the guidelines
Calculated by multiplying the amount of each type of waste by the CO2 unit value stipulated
in the guidelines
Calculated by multiplying the number of employees by the CO2 unit value stipulated in the guidelines
Calculated by multiplying the amount of transportation expenses by the CO2 unit value stipulated
in the guidelines
Amount of CO2 emitted as included in the periodic reports of specified shippers under the Energy
Conservation Act* The amount of CO2 emitted in each category was calculated with reference to the Ministry of the Environment’s Green Value Chain Platform and other guidelines.
Reference materials
Basic Guidelines on Accounting for Greenhouse Gas Emissions throughout the Supply Chain (Ver.2.2), Ministry of the Environment
Database of Emissions Intensity for Accounting of Greenhouse Gas Emissions from Organizations throughout the Supply Chain (Ver.2.4),
Integrated Report 2020
Ministry of the Environment

Data Section(NOx), it has led to reduced emissions of air pollutants.

2,705(68.0%)

74
42

COD (t/yr)
BOD (t/yr)
SS (t/yr)Drainage volume(1,000,000 m3/yr)

100of air pollutant emissions by 62.8% from the fiscal 2013 level,

particular enables CO2 emissions reduction by improving theand also enables substantial elimination of nitrogen oxides

2,712

The status of environmental load in fiscal 2019 is as shownmelting furnaces, used mainly to manufacture glass fiber, andSince the installation of oxygen combustion systems in

2,768

Chronological changes in the amounts ofwater pollutants and drainage

150

4.0

0

3,003

2,834

65

50

Main Changes in Environmental Load in the Nittobo Group

68.0% reduction in total amount (vs FY13)

83

FY13

103.5
11.33 100

7.93

FY18

29
41
FY19

30

(0.2%)

75
8.0

298
21
38

120

0.2

103.7

268

PRTR substance emissions

60
25

FY13

2,975

50

5,000

0

14
44
FY17

150

90

8,846

255

128

69.0

67.1

FY15

18
34
FY16

Chronological changes in the amounts of PRTR
substances emitted and handled

Recycling rate

15,000

FY14

313

19
60

52
44

Foundation for Value Creation

23 thousand tons

Amount of PRTR
substances emitted tothe environment*6*1 Energy input: Amount of energy obtained byconverting fuel used at factories and other sites for
manufacturing and electricity purchased into crude oil.
*2 Amount of recycled goods received: Amount ofrecycled resources received by Nittobo’s factories andother sites from other companies as raw materials.
*3 Energy-derived CO2 emissions: Amount of carbon
dioxide emitted by consuming energy at factories andother sites for manufacturing.
*4 Amount of industrial waste disposed of: Portion ofindustrial waste generated at factories and other sites,
which is not used effectively and is simply incinerated,
sent to landfill sites, or otherwise disposed of.
*5 Amount recycled: Portion of industrial waste generated
at factories and other sites, which is effectively usedor recycled for reuse.
*6 Amount of PRTR substances emitted to theenvironment: Amount of substances emitted to air
and water by factories and other sites, which are
subject to the stipulations in the PRTR Act. (Act on
Confirmation, Etc. of Release Amounts of SpecificChemical Substances in the Environment and Promotionof Improvements to the Management Thereof)

800

Strategies for Value Creation

Manufacturing
and processing

1,000

600

Chronological changes in the amount of industrial waste
disposal and the recycling rate

Scope of Data Collection
Domestic business sites: Data collected from April 2019
to March 2020
Overseas business sites: Data collected from January to
December 2019OUTPUT

62.8% reduction in total amount (vs FY13)

95
0

Air pollutant emissions

990(8.9%)

3.82
318

161

The Nittobo Group conducts an environmental protection survey for its consolidated subsidiaries once a year.
The material balance shown in the figure below has been obtained by collecting data from Nittobo and its consolidated subsidiaries in Japan andabroad on environmental impacts.
(Data on certain items are not collected from some overseas business sites.)SOx (t/yr)

per unit of sales (vs FY13)

3.92

450

349

NOx (t/yr)
Dust (t/yr)

CO2 emissions

150

Results for FY2019

thousand tons

4.10

industrial waste that is simply incinerated or sent to external

environmental impacts include carbon dioxide generated as a

150

Energy-derived CO2 (1,000t-CO2)
Scope 1
Scope 2P er unit of consolidated net sales (t-CO2/million yen)discharged to the environment without being collected, andmaterials and consuming fuel and electric energy. Major

Chronological changes in the amountof air pollutant emissions
Nittobo’s Value Creation

The Nittobo Group manufactures a wide range of products byChronological changes in the amount ofenergy-derived CO2 emissions

45

SocialSafety Initiatives

Each of the Nittobo Group’s business sites seeks harmony with society and engages in various
activities with the aim of growing and developing together with its host community.

Nittobo Group will comply with all laws and regulations and will establish safe and pleasantworking environments based on the understanding that the safety and health of its employees
is the foundation of its business operations.

Community Beautification Activities

Support for Regional Vitalization and Sports

The Nittobo Group’s business sites engage in community

The Nittobo Group serves as an official club partner ofbeautification activities. The Fukushima Factory participates in a

FUKUSHIMA UNITED FOOTBALL CLUB, a J. League footballcleanup project for the Arakawa River, a clear river that flows

team that is active around the country with the aim ofthrough Fukushima City. In addition, the Fukushima No. 2

supporting the development and regional vitalization of

Factory engages in cleanup activities at a nearby river together

Fukushima through sports.

Course of Action
1

Establishment ofa Safe Workplace
Environment

Perform a risk assessment toremove and decrease hazardous and harmful factors andinvest in necessary management resources to maintainand improve our safe andheathy working environment.

with local residents.

2

Promote Health
Maintenance

Proactively assist in the maintenance and promotion of thehealth of our employees bothmentally and physically by establishing a pleasant workplace inwhich they freely and willingly
exchange opinions and toprevent harassment or excessive
workload at the workplace.

3

Compliance andManagement ofLabor Policy

4Comply with laws, regulations and other standards
regarding safety and healthand to set our own environmental policies and management standards.

Implementationof Periodic
Inspection

Seek to examine and improvesafety and health control
systems and to enhance suchcontrol standards throughthe implementation of
periodic safety and healthinspections.

5

Nittobo’s Value Creation

Harmonious Coexistence with Communities

Education/
Enlightenment

Create safe and healthy
working environments across
our organization by thoroughly providing all of ouremployees with safety andhealth education and tounderstand safety and healthguidelines.
Established on July 1, 2017

Strategies for Value Creation

Examples of Safety Initiatives
Arakawa River cleanup project inFukushima City

Volunteer river cleanup work in the
Sakura area

Picture taken in FY2019

Response to Major Disasters

Response to COVID-19

The Nittobo Group manages risks to mitigate the potential

In its response to the COVID-19, the Nittobo Group is

Fukushima Reconstruction Support

Support for Education

impact of disasters, accidents and other events. To ensure theprioritizing the safety of employees and business partners.

Every year since 2016, the Nittobo Group has held Fukushima

The Fukushima Factory holds children’s science classes every

safety and health of employees is the basis of business

Employees at the Tokyo Headquarters, Osaka Branch, and sales

Marche, a fair to support the reconstruction of Fukushima

year to increase interest in science and the environment among

management, committees at each business site conduct

offices in urban areas are being advised to work from home. All

Prefecture, at the Tokyo Headquarters. At the fair, we publicize

the children who will become tomorrow’s leaders. The

activities to promote legal compliance and to create safe andGroup factories and subsidiaries are focusing on preventing

initiatives for reconstruction of Fukushima Prefecture and for

Fukuyama Enterprise Center has engaged in similar initiativepleasant working environments. BCP training and earthquake

infection by enforcing rules on wearing face masks and using

food security and safety by displaying panels depicting

since fiscal 2012. Other factories have hosted plant tours forand fire response drills are also conducted on a regular basis.

alcohol sanitizer. In addition, in April 2020, the Group

reconstruction and recovery in Fukushima Prefecture and selling

students and other visitors as well.

local culinary specialties from the prefecture.

Fukushima local specialties

Children’s science class (Fukushima Factory)

Children’s science class (Fukuyama
Enterprise Center)P rioritize the safety and wellbeing of employees and theirfamilies.

Groupwide systems for preventing infection. The Group is also2

 here possible, continue to conduct critical businessW
operations, such as supplying useful products, technologies
and services. If business operations are halted, aim to restart
as soon as possible.

masks and other necessary medical products, and3

Blood Drive Activities
The Nittobo Group is working with Fukushima Prefecture to

The Fukuyama Enterprise Center has cooperated in blood drives

decontaminate soil. We have provided one company site infor more than 40 years. A bloodmobile visits the Center every

Fukushima City as a temporary storage area foryear in the spring and autumn for employees donate blood. In

decontaminated soil and two sites in Koriyama City as a2015, Fukushima Prefecture awarded the Center a governor’sloading area for decontaminated soil.

Certificate of Appreciation for Organizations Cooperating in

Representative and Chief Executive Officer, to further reinforce

1

4

5

 ppropriately manage the risk of business disruption andAminimize the impact on business management.
 ooperate with local residents and surrounding local
C
governments as a good corporate citizen.
 egularly update BCPs and conduct drills to verifyR
effectiveness (annually)

regularly reviewing supply chains, building stockpiles of face
implementing staggered work hours to avoid the “Three Cs”(closed spaces, crowded places, close-contact settings).
DateGroupwide

over many years.

46

Nittobo Group

Bloodmobile (Fukuyama Enterprise Center)

Factories

Fukushima Prefectural Governor’s
Certificate of Appreciation for
Organizations Cooperating in Public
Health Projects

BCP training drill

April 2020 –COVID-19 Response Headquarters established

Progressively
implemented
from February
2020

In principle, all employees to work remotely(roughly 20% of workforce onsite)
In principle, all employees to work remotely
three days per week(roughly 40% of workforce onsite)
In principle, all employees to work remotely
two days per week(roughly 60% of workforce onsite)
Strict measures to prevent infection,
including sanitization on arrival onsite,
wider spacing between seats in canteens
and avoiding close contact in break rooms,
changing rooms and other areas

Enforcing rules on wearing face masks and using alcohol sanitizer
Integrated Report 2020

47

Data Section

Loading area

January 2020

March to early
Tokyo
June 2020
Headquarters
Early June to end
and otherof September
urban sales
2020
offices,
exceptOctober 2020 –factories

Public Health Projects in recognition of its blood drive activities

Response
Notice issued on pneumonia caused by
COVID-19

Foundation for Value Creation

Fukushima Marche

established a COVID-19 Response Headquarters, led by the

Basic Policy on Responding to Major DisastersSocialActive Roles of Diverse Talent1

In particular, in today’s unprecedented businessenvironment, developing business persons who can overcome

In addition to conventional stratified training for personnel

preconditions is an indispensable activity. We believe it leads tofrom new graduate entrants, young employees and newly

an essential pillar for business strategies. Nittobo will

promoted team managers through to department and divisionsystematically develop the leaders who drive our businesses.

To ensure the Nittobo Group remains the “Best Partner”

and organizational culture that is motivating for all

managers, in fiscal 2018 Nittobo launched its Successor

for all stakeholders and continues to contribute to theemployees based on respect for different people,

Development Programs. These programs are designed to matchcreation of prosperous communities, we believe it isregardless of gender, age, SOGI*, nationality, disability

the growth stage of each employee, focusing on young

To prepare for further globalization of our business, it isimportant to value and harness the capabilities and views

and other individual identities.

employees and middle management, in order to develop futureessential that Nittobo develops human resources and creates a* SOGI: Sexual Orientation & Gender Identity

leaders. These programs consist of intensive training forcorporate culture that enables diverse human resources to fulfill

business skills and action learning using practical cases we needtheir potential. We are enhancing mechanisms that support theto resolve. Through the training, these programs develop

voluntary efforts of individuals to become who they want tounderstanding about the role of senior managers and improvebe, such as providing opportunities and systems for employees

managerial qualifications.

to travel overseas to study foreign languages, participate inof every employee in the Group. In line with that thinking,the whole Nittobo Group strives to create an environment

Systems to Promote Diversity2

Development of global talentinternships, take MBA courses and work at research institutes.

1 Future leaders successor

development programis a valuable asset. Nittobo considers it important to create an

personalities can lead to success in meeting diverse customer

organization accepting of diversity in which each individual canneeds and delivering peace of mind and confidence. Employees

fully demonstrate his or her capabilities. One way of laying theare the driving force that supports the Nittobo Group’s

foundation for such a diverse organization is to respect andsustained growth, and each member of our diverse workforce

promote diversity and inclusion.

Management pre-promotion
training

Middle-rank
employees

Discussion by employees with different perspectives andYoung employees

Diversity and Inclusion

Future Leaders
Development:
Primary

Genba (production frontline)
leader training
T-grade employee
training
SG-grade employee
training

3 Developmentof professional
talentLeader development
external training
with other companies

Young employee training(1st to 3rd year of
employment)
Newcomer training for
new graduates

specialization and work to establish their core skills. We
introduced the Meister Program in fiscal 2018 atCourseContent

Overseas language study course

Overseas study mainly for the developmentof foreign language skills

Study at business schools

MBA acquisition at a business school inEurope or the U.S.

and women, Japanese and foreign nationals, re-employedOverseas research instituteassignment course

R&D in a global environment

workers, mid-career hires, temporary workers, and other

Overseas company internshipcoursePractical experience in a global environment

and values work in those businesses. To maximize theGraduate school for working
people course

MBA/MOT* acquisition while continuing
work

performance of these human resources, and thus promote* MBA: Master of Business Administration / MOT: Management of Technology

people including young talent and seasoned veterans, men

employees of various generations with different experiences

further business and individual growth, we will meticulously
engage in human resource (HR) management focused on
and training programs.

48

Nittobo Group

Growth Support Program
Coursecustomers, we provide solutions-based training in solving
problems facing customers and link this training to
improvement of professional skills that enable these employees
to further enhance customer satisfaction. We also provide
wide-ranging support for individual skills development,
offering a program to assist employees in obtaining public

Content

TOEIC test

Conducted in-house (at company expense)

Online English conversation
lessons

Opportunities for English conversation
practice (at company expense)

Foreign trade practice course

Export-related skills acquisition (at company
expense)Correspondence courses

TOEIC, business English conversation, etc.
(fixed-amount company contribution)

Yoshiki Kaneko
Corporate Planning
Nittobo America Inc.
I currently work in Corporate Planning at Nittobo America
Inc., where I formulate budgets and Mid-term Business Plans
and develop, design and manage systems that help thecompany attain its business targets.
After joining Nittobo, I took an interest in the overseas
posting system as a way of challenging myself in newenvironments. With Nittobo’s support I was given theopportunity to study business at a university for six months
while doing a home-stay in the U.S. My overseas study
experience in the U.S. brought me into contact with a diverse

range of values and personalities, giving me first-hand insights
into the challenges of communicating in different countries. I
was also able to acquire the fundamental skills needed forcommunicating and facilitating meetings with local executives
and managers, which is vital for my current role.
My work experience so far has helped me realize thatseeing change as an opportunity and always taking a positive
approach will support career development. That’s because, as
somebody who previously led a sheltered life in Japan, my
global experience has helped me become resilient enough totake on new challenges without fearof failure and continue studying
without giving up. My goal is todevelop my career further bycontinuing to seek out new
challenges and slowly but surely gain
new positive experiences.
Integrated Report 2020

Data Section

individuals, while continuously enhancing our HR systems

representatives (DMRs), who have frequent contact withassistance program that includes e-learning.

VOICE

Training Program

development, manufacturing and sales. A wide variety oftransfer. For sales representatives and diagnostics medical

qualifications necessary for work and a distance learning

Human Resource Development

involved in various activities, such as product planning,

manufacturing sites and are systematically promoting skills

Foundation for Value Creation

Joining the company

glass fiber and textiles to medical products. Each business isDevelopment of professional talentdevelopment as specialized professionals in their areas of

Manufacturing Meister program

Future Leaders
Development:Intermediate

Newly promoted
manager training

3

Before becoming managers, Nittobo employees pursue

Future Leaders
Development:
Advanced

Appraiser/labor
management training

Specialized skills development

Promotion ofmanagement andleadership skills
growthProfessional skills
development

Common practical skills developmentwith frontline sites and employee awareness surveys.

Selective
education

2 Development of global talentand the Human Resources Department work together toTraining by
job rank

Self-development support (correspondence courses)

actively identify and resolve any issues through direct dialogue

Managers

Using the Nittobo Declaration as the basic policy, management

Strategies for Value Creation

Outline of Training System

The Nittobo Group is made up of businesses ranging from

Nittobo’s Value Creation

Basic Approach evelopment of the next generation
Dof management leaders49

Social3Work Style Reform and Health Management
Work-Life Balance Support Programs

Average monthly overtime per employee at Nittobo in fiscal
2019 was approximately eight hours, much lower than the
manufacturing industry average. To enable employees to

Nursing careChildcare
Hourly paid leave

Hourly paid leave

Shorter working hours during
pregnancy, staggered working
hours

Nursing care leave

work-life balance, we will continue to develop an environment

Pregnancy leave

Flextime system

in which people pursue long careers. Also, in Japan, which has

Childbirth leave (employees
and spouses)

Shorter working hours system fornursing careChildcare leave

Accumulated sick leave (employee/
nursing of family members)

Flextime system

Overtime and late-night work
exemption and limitation

experience job satisfaction and demonstrate their best
performance, while simultaneously maintaining an appropriate

a declining birthrate and aging population, it is important to
prepare a worker-friendly environment for employees withon hourly units and a flextime system that eliminates core
hours. Also, amid the COVID-19 pandemic, we have started a

Nursing-care leavespread of infection. With work practices in general expected toundergo far-reaching changes, we will continue to embed andcompetition to secure human resources is likely to become

continue working with high levels of motivation after the age

increasingly intense. Against that backdrop, we will enhanceof 60. We will also implement initiatives to make Nittobo a

programs and mechanisms that encourage employees tocompany that employees will be glad they chose until the end

pursue careers at Nittobo for as long as possible. We areof their careers.

Number and proportion of employees taking childcare leave

improve new work practices that achieve both a high-quality

Overtime and late-night work
exemption and limitation

work-life balance and significant improvements in productivity.

Babysitter expense assistance

20

44％

0

FY15

FY16

FY17

FY18

satisfaction. In cooperation with the Nittobo Health Insurance

recreation. We have also taken out comprehensive medical

Association, we strive to promote employee health by providing

expense insurance to alleviate the expense burden on

opportunities for physical and mental refreshment, such as

employees when injury or sickness occurs.

10.9

15

10.9

free-of-charge use of a sports gym, health checkups
Nittobo Health Insurance Association Preventive Health Checkup Menu

5

Age 30–12.6(Days)

10

Health checks sent by post < ordinary members and dependents >

FY19

12.6
10.0

10.2

FY16

FY17

10.8

Age 40–
0

FY15

FY18

FY19

Gum disease check
Stomach cancer (helicobacter pylori test, pepsinogen test)
Tf colorectal cancer test (one day), hilar lung cancer test, prostate cancer test <men>
Osteoporosis test

Ratio of women in management positions
Ratio of women in management positions

Cervical cancer <women>
2S eparate cancer tests for women < women, ordinary members >

4.0％

(%)
6.0

Breast cancer examination / cervical cancer test3

S pecial optional health checks < women, ordinary dependents, private members
and dependents >

2.9％
4.0

4.1

4.0

FY18

FY19

3.5

Breast cancer examination / cervical cancer test
2.0

4

O
 ptional health check < ordinary members and dependents, private members
and dependents >Gastroscopy test

0

FY15

FY16

FY17

Data Section

2.9

3.2

I’m involved in the design and development of hardcoating agents for construction and automotive
applications and amino acid-based polymers, which
are used in a wide range of applications such as
washing detergent and pharmaceutical ingredients.
As the manager of the Development Group, my mainrole is to allocate work and manage the progress ofdevelopment themes.
In both work and family life, I think it’s important
to use limited time efficiently and get help frompeople around us. I sometimes have to take time offwork at short notice to care for sick children or forother emergencies, but I do my best to prioritize jobs
while also receiving support from colleagues andfamily. When I have urgent or important work to do,
I check with my family first then swap holidays withmy partner or use the hourly paid leave system tobalance my work and home commitments.
I think relationships with colleagues are key tocontinuing work. Good relationships make it easier to
ask for help or seek advice, creating a team spirit thathelps to keep work on track. I make an effort to takethe initiative and communicate with the members of
my group.
I’ve been involved indevelopment work sincejoining Nittobo as a new
graduate, and I hope tocontinue working in this field.
In the future, I want to acquire
the expertise to propose newmaterials that reflect accountcustomer requirements andend-product specifications.

Foundation for Value Creation

administered by post, and support for family enjoyment of

Yoko Teruuchi
Manager
Specialty Chemicals
Development Group
Medical Business Department
Nitto Boseki Co., Ltd.

Number of annual paid leave days taken

Age 20–14

Number of annual paid leave days taken

Health in mind and body is the cornerstone of employee job

1

14

5

Health management

2

14

8

10

Accumulated sick leave (employee/
nursing of family members)

VOICE

50％

(People)Shorter working hours systemfor childcare

work-from-home system on a trial basis to help prevent theand developing a working environment to enable employees toStrategies for Value Creation

kinds of life events, such as an annual paid leave system based

focusing particularly on enhancing HR programs and benefits

which has a declining birthrate and aging population, andNumber of employees taking childcare leavechildcare or nursing care responsibilities. We are enhancing
programs that allow employees to respond flexibly to thoseA declining working population is a major social issue in Japan,

Breast cancer examination / cervical cancer test <women>

50

Nittobo Group

Nittobo’s Value Creation

Promotion of work-life balance1Work after the age of 60

Integrated Report 202051

GovernanceCorporate Governance

The Nittobo Group constantly revises corporate governancewith the aim of creating a fair and highly transparent
management organization in order to conduct businessactivities with emphasis on social trust from the Nittobo
Group’s shareholders, investors and other stakeholders.

Overview of the Corporate Governance System and Reasonsfor Employing the System
the company further clarified the separation of supervisionfrom execution and has aims to strengthen supervisory
functions, ensure highly transparent management, executebusiness swiftly, and increase the flexibility of management.
Furthermore, by establishing a system that enables it tomore precisely meet the expectations of stakeholders, suchas customers, shareholders, suppliers, and employees, theCompany will work to further enhance its corporate value.

Corporate Governance System
Board of Directors

4 External Directors(1 woman)

Nomination Committee(Chair: External Director)

Remuneration Committee(Chair: External Director)

Audit Committee(Chair: External Director)

4 External Directors(1 woman)

3 External Directors(1 woman)

3 External Directors(1 woman)

3 Internal
Directors

1 Internal
Director

1 Internal
Director

2 Internal
Directors

Nomination, Remuneration and
Audit Committees

Nomination Committee
The Nomination Committee determines the content ofproposals to elect and dismiss directors to be submitted to theGeneral Meeting of Shareholders. It is made up of five
directors (four of whom are External Directors), and is chaired
by External Director Sadayoshi Fujishige. Meetings of theNomination Committee are held as needed. The Nomination
Committee selects the Company’s director candidates who are
believed to be the most suitable based on factors such as theircharacter and insight.

General Meeting of Shareholders
Election and dismissal

Election and dismissal

Board of Directors

Auditing corporation
Accounting auditor

Election,
dismissal andsupervision

Nomination Committee

Election,
dismissal andsupervision

Remuneration Committee
Reporting and coordination

Audit Committee

Audit Committee
Secretariat

Reporting andcoordination

Reporting and coordination

Audit Office

Auditing

Representative andChief Executive Officer

Risk Management
Committee

Executive Officer

Yarn andTextileDivision
Textilebusiness

MedicalDivision

Glass Fiber Division

Glass fiberyarn business

Glass fiber
cloth business

Glass fiber
for industrial
materials
business

Beveragebusiness

Life science businessCorporate
Business
Planning
Department

Data Section

Remuneration Committee
The Remuneration Committee determines the content of
individual remuneration, etc., of Directors and Executive
Officers. It is made up of four Directors (three of whom areExternal Directors), and is chaired by External Director Hiroshi
Kagechika. Meetings of the Remuneration Committee areheld as needed.

Diagram of Corporate Governance System

Foundation for Value Creation

As a company with Nomination Committee, etc., theCompany has established a Nomination Committee, aRemuneration Committee and an Audit Committee. The rolesof the committees and overviews of the members of thecommittees as of the date of the publication of this report are
as follows.

ReportingNittobo Group

Board of Directors• Execution Functions

52

Composition of Board of Directors and Three Committees• Supervision Functions

The Company’s basic policy is to constitute the Board of
Directors with directors from within the Company withcapabilities and knowledge on each business and management in general, and at least the same number of External
Directors as internal directors, who are able to express
opinions beneficial for the enhancement of governance fromthe perspectives of diverse stakeholders and society, in orderto ensure a system enabling appropriate supervision of theCompany’s business execution by the Board of Directors as awhole, and has specified that the Board of Directors shall haveno more than 12 members in its Articles of Incorporation.
At the time of publication of this report, the Company’s
Board of Directors was made up of seven members including
four External Directors.
The Board of Directors is responsible for supervision ofbusiness execution through selection of directors making up
the Nomination, Remuneration and Audit Committees,election and dismissal of Executive Officers and delegation ofbusiness to Executive Officers, approval of matters related tooperations that have an impact on basic management policy
such as mid-term business plans and annual budgets, andapproval of matters that could have a significant impact onGroup management such as investments exceeding a certain
amount. The term of office of directors is one year, and a voteof confidence in directors is obtained in the Ordinary General
Meeting of Shareholders held annually. The Company’s
Executive Officers are determined by the Board of Directors.
People suitable for the execution of the Company’s businessare elected from the perspective of enhancement of businessexecution and corporate value by adopting the approach of
putting the right people in the right place.

As of the date of the publication of this report, the Company
had 12 Executive Officers, of which one has been selected as
Representative and Chief Executive Officer.
An Executive Meeting has been established as an organ todeliberate matters related to the execution of businessdelegated by the Board of Directors, and it endeavors toensure efficient business execution by holding meetings twicea month.

Strategies for Value Creation

The Company introduced an executive officer system in June
2003 and has created a system able to maximize the effect ofconsolidated management by invigorating the Board of
Directors and speeding up decision making. Since June 2008,
management has been conducted by further clarifying thefunctions and roles of management and business execution.
In addition, with the approval of the Ordinary General
Meeting of Shareholders on June 26, 2014, Nittobo shiftedto a company with Nomination Committee, etc. By doing so,

Execution of Business
Nittobo’s Value Creation

Basic Approach Concerning Corporate Governance

Audit Committee
The Audit Committee’s responsibilities include auditing thestate of execution of duties of Directors and Executive
Officers, and the preparation of audit reports. Working withaccounting auditors and the Audit Office, audits, etc., areconducted based on audit plans approved in the Audit
Committee. It is made up of five Directors (three of whom areExternal Directors), and is chaired by External Director
Masamichi Ouchi. An Audit Committee Secretariat has been
established as an organization for assisting the duties of the
Audit Committee. In principle, the Audit Committee holds
meetings at least once every three months.

Research &Development
Headquarters(NI-CoLabo)

Integrated Report 202053

Governance
Executive Remuneration

Self-evaluation Concerning the Effectiveness of the Board of Directors

Initiatives in Fiscal 2019

Remedial Measures• Enhancement of feedback from Executive Officers on
matters resolved by the Board of Directors• Deepening of discussion on management policy andmanagement strategy, including from the perspectiveof ESG and SDGs
• Further strengthening of risk management, such as
disaster countermeasures, fraud prevention measuresand Group management, etc.
• Review of the balance of items and time for discussion
at meetings of the Board of Directors and the distribution of authority with the Executive Officers

The Company will continue to make improvements toensure the Board of Directors performs effective supervisory
functions.

Executive Remuneration, etc.
1

 atters pertaining to policy the determination of the amount of executive remuneration, etc., and the method ofM
calculation thereof(a) Deciding policy
The Company determines policy related to the determination of individual remuneration of Directors and Executive
Officers on the basis of objective data, etc., from external
consultants in the Remuneration Committee made up of amajority of External Directors and chaired by an External
Director, based on the provisions of the Companies Act
related to a Company with Nomination Committee, etc.
Furthermore, the policy is based on the approach ofproviding strong motivation for officers to achieve theirperformance targets with secure transparency andrationality, fostering awareness for medium- to long-term
management, and conforming with the interests ofstakeholders including shareholders and investors, and theperformance targets used for calculating remuneration also
reflect this approach.

(b) Outline of the policy
The Company’s executive remuneration (excluding External
Directors) is structured by basic remuneration determinedby the state of competency expected of each position(behavior evaluation) and the state of performance (performance evaluation), and performance-linked remunerationthat varies within a range of 0% to 150% according to thelevel of achievement of individual performance targets
based on company performance targets from the previous
fiscal year and the activities and performance of the
responsible divisions, and the current fiscal year’s remuneration is based on a combination of these.
Performance-linked remuneration has not been
applied for External Directors due to the role ofsupervising management from an independent andobjective perspective.

Percentage of Remuneration by Position
Percentage composition of executive remuneration(if the achievement ratio of company and individual targets is 100%)

Position

Basic remuneration

Performance-linked remuneration (note)
Company performance

Individual performance

Representative and Chief Executive Officer

67%

16.5%

16.5%

Senior Managing Executive Officer

69%

15.5%

15.5%

Other officers (excluding External Directors)

71%

14.5%

14.5%

External Directors

100%

—

—

Performance Targets and Percentage Reflection in Performance-linked Remuneration

Corporate Governance Highlights
2011

Corporate
Governance System

2012

2013

Company with Board of
Directors

2014

2015

2016

2017

2018

2019

2020

Individual performance

Company with Nomination Committee (from June 2014)
Nomination Committee (Chair: External Director)

Directors
Of which,
External Directors

Audit
Committee(Chair:Internal
director)

—

7

6

1

1

3

4 (more than half)

7

6

7

4 (more3 (more4 (morethan half)than half)than half)

1

Of which, women

Revisions to systems,
regulations

54

Nittobo Group25%

Dividends(year on year)

25%

25%

Operating profit of responsible division(compared to budget)

Status of initiatives to address issues in mid-termbusiness plan for responsible division

40%

60%

Briefings before Board of Directors meetings
Board of Directors Evaluation ofeffectivenessConsultant and special advisor systems
abolished
Executive Meeting regulations formulated<Calculation rules>(Basic remuneration)
This is determined using a basic remuneration table that is a matrix based on four levels of behavior evaluation and nine levelsof performance evaluation.
(Performance-linked remuneration)• Company performance = amount of basic remuneration for each prior fiscal year x percentage of company performance foreach position x level of achievement of company performance for the previous fiscal year
• Individual performance = amount of basic remuneration for each prior fiscal year x percentage of individual performance foreach position x level of achievement of individual performance for the previous fiscal year
Performance-linked remuneration is determined by combining the company performance and the individual performance
calculated as shown above.
The Remuneration Committee checks the validity of the level of remuneration based on data on executive remuneration
periodically provided by external consultants.
Integrated Report 2020

55

Data Section

Operation of Boardof Directors

25%

ROE
(year on year)

The Remuneration Committee chaired by an External Director checks the exhibition of competencies and the level of achievement ofcompany performance targets and individual performance targets, and calculates and determines individual amounts based on the
aforementioned remuneration percentages and percentages of reflection in performance-linked remuneration.

Audit Committee (Chair: External Director)

82Operating profit(year on year)

Process of Determining Remuneration

Remuneration Committee (Chair: External Director)
Committees

Operating profit(compared to budget)Foundation for Value Creation(Note) P erformance-linked remuneration (company performance + individual performance) is set at 50% of basic remuneration for the Representative and Chief Executive Officer,
45% of basic remuneration for the Senior Managing Executive Officer, and 40% of basic remuneration for other officers (excluding External Directors).

Company performance

Strategies for Value Creation• The Nomination Committee’s activities were stimulated
and the committee held discussions regarding thesuitability and diversity of personnel for the Board of
Directors. At the Ordinary General Meeting of
Shareholders held in June 2020, the Company
increased the number of candidates for External
Director by one and appointed External Directors withdiverse backgrounds.
• The Remuneration Committee began discussing the
introduction of a share-based compensation system,and held several discussions about this.
• W ith regard to large-scale capital investment projects
and disaster responses in Japan and overseas, theExecutive Officers provided explanations and reports at
the preliminary briefings and individual explanations to
the External Directors, and deepened deliberations by
the Board of Directors.

In a survey covering fiscal 2019, some responded that theoperation of the Board of Directors and each committee had
improved. However, some responded that the following items
require improvement.

Nittobo’s Value Creation

The composition, operation, supervision, support structure,shareholder dialogue, etc., of the Company’s Board of
Directors are analyzed and evaluated by the Board of Directors
based on evaluations by each director by implementing
surveys using external attorneys.
In the self-evaluation concerning the effectiveness of
the Board of Directors in fiscal 2018, the opinion was
expressed that further improvements need to be made tomatters such as the suitability of personnel for the Board of
Directors; the diversity and term of office of Directors;
the activities of the Nominating, Remuneration and Audit
Committees; and communication with Directors and Executive
Officers. In response to this opinion, the following initiatives
were adopted in fiscal 2019.

Governance1. Individual performance targets are set using individual quantitative and qualitative targets, and calculated based on the results thereof.
2. The value indicated with an asterisk is the adjusted target value after the announcement of the financial results for the six months
ended September 30, 2019.

2

 otal amount of remuneration, etc., by category of executive, total amount by category of remuneration, etc., andT
number of officers who are recipients thereof
Category of Executive

Total amount of Total amount by category of remuneration, etc. (million yen)
Number of officers
remuneration, etc.
Fixed
Performance-linked
Retirement
who are recipients(million yen)remuneration
remuneration
benefits
61

44

17

—

3

Executive Officers

205

147

58

—

10

External Directors

78

78

—

—

4

(Notes) 1. The above numbers include, where applicable, one Director who retired as of the conclusion of the 158th Ordinary General Meeting of Shareholders held on June 26, 2019.
2. The amount paid to Executive Officers does not include the wages paid for employment as an Executive Officer for those who also serve as employees.
3. The Company’s performance-linked remuneration is calculated based on the previous fiscal year’s performance, and the amount combined with fixed remuneration (basic
remuneration) is defined as remuneration for the current fiscal year, and this is paid as a regular equal wage.

Dialogue with Stakeholders

56

Nittobo Group

Opinions and concerns, etc., about the Company that arelearned through dialogue with shareholders and investors
are collated by the Corporate Communication Department,
reported to the Executive Officer in charge of the Corporate
Communication Department, and appropriately provided as
feedback to management executives and the Board of
Directors by means of reporting to the Executive Meeting, etc.,
as needed.
Adequate care is given to insider information in individual
inquiries and dialogue with the Nittobo Group, and explanations are limited to information that has already been publishedand facts that are well known.

Compliance System ystem for Ensuring that the Execution of Duties of theSGroup’s Officers and Employees Is in Compliance with
Laws, Regulations and the Articles of Incorporation• The Representative and Chief Executive Officer sets an
example and ensures that the Group’s officers and employees
are aware of the Group’s Corporate Philosophy, Nittobo
Declaration which espouses shared values in order tobecome a company trusted by society, and Nittobo Behavior
Program and Code of Conduct, both of which provide a setof action guidelines, and also endeavors to make themknown to all officers and employees in the Group.
• Executive Officers and employees foster a healthy corporate
culture that forms the basis for compliance by spreading
and implementing the Nittobo Declaration.
• Executive Officers and employees comply with laws, regulations, the articles of incorporation and internal rules, etc.,
based on the Nittobo Behavior Program and Code of Conduct,
and the departments responsible for compliance strive toraise awareness of compliance to increase their effectiveness.
• Violations of laws and regulations are prevented, quickly
discovered and appropriately addressed through a
Corporate Ethics Help Line, which is a whistleblowing
program with an internal whistleblowing contact and an
external contact connecting to a law firm.

• The officer in charge of the Risk Management Department
periodically reviews the state of establishment of the
Nittobo Group’s internal control system to ensure thecurrent conditions are consistent with the Group’s basic
policy. The results of the review are reported to theRepresentative and Chief Executive Officer, who reports to
the Board of Directors, which passes resolutions if any
revisions to the basic policy are required.
• The Audit Committee reports the results of operational
audits and compliance audits, etc., to the Board of Directors
as appropriate.
 ther System for Ensuring Appropriate Operations byO
the Nittobo Group• The Nittobo Declaration, the Nittobo Behavior Program, theCode of Conduct and the Corporate Ethics Help Line apply
to the entire Nittobo Group, and efforts are made to raiseawareness of these.
• Auditing offices are established in major subsidiaries toensure appropriate operations, and the Company’s Audit
Office also conduct internal audits with a view to the entire
Nittobo Group.

Risk Management
The Company has established the Nittobo Group’s basic
risk management policy and system in the Rules for Risk
Management as a corporate group including subsidiaries.
Based on the basic policy and system, the Risk Management
Committee chaired by the Representative and Chief Executive
Officer appropriately manages various risks surrounding
our business and prevents such risks from occurring.

Furthermore, the Company is also striving to strengthen its
legal risk management system by putting in place a systemthat enables it to receive various kinds of guidance as theoccasion demands, such as opinions and advice from
corporate attorneys and specialized lawyers regarding
corporate management and daily operations.

Integrated Report 2020

Data Section(i) We publish items specified for disclosure in Japanese andforeign laws, regulations and securities exchange rules inbusiness reports, annual securities reports and communications to shareholders, and announce them in securities
exchange communication systems and press releases.
(ii) In principle, we publish information being disclosed on the
Nittobo Group’s website, and also endeavor to provide
fairer and broader disclosure.

(iii) We conduct briefings for analysts and institutional
investors promptly after the announcement of annual andsemi-annual financial results.

Method for Assessing Rationale for Holding Shares
The Company reviews the holding policy for listed sharesindividually at a meeting of the Board of Directors on aperiodic basis, comprehensively considering qualitative factors
such as the materiality of transactions with the trading
partner, the existence of any technological cooperation or
joint capital investment, whether there are any joint ventures
underway, and a quantitative evaluation that compares thetotal return on investment, calculated by considering dividend
yield and business profit, against the cost of capital, as well as
the comprehensively considered policy on cross-shareholding.
Based on such reviews, the Company sold three different
company shares worth 783 million yen in fiscal 2019, and 14
different company shares worth 4,138 million yen in thethree-year period from fiscal 2017.

Foundation for Value Creation

The Corporate Communication Officer is responsible forgeneral dialogue with shareholders, and the Corporate
Communication Department is the internal department
responsible for providing assistance thereto. The Company
endeavors to have opportunities for dialogue withshareholders that contribute to the sustained growth andenhancement of medium- to long-term corporate value of theCompany centered on Executive Officers. Furthermore,
departments involved in IR activities centered on the
Corporate Communication Department work to coordinate
among departments on a daily basis.
We will continue to endeavor to disclose information in atimely and appropriate manner to enable the Nittobo Group’s
customers, shareholders and investors to accurately recognize
and judge the actual state of the Nittobo Group. In order toachieve this, we comply with laws, regulations and securities
exchange rules on disclosure, and are engaged in the creationand operation of an appropriate disclosure system.

Policy Regarding Cross-shareholdings
The Company holds shares of listed companies under its
policy on cross-shareholding in cases where it deems suchshareholding to be beneficial for building favorable trading
relationships with important trading partners of the Group in
fields including sales, raw material procurement and finance,smoothly advancing business activities of the Group, andenhancing corporate value in the Group. However, when the
Company deems that shares in its cross-shareholding are notcontributing to the sustainability and growth of the Group’s
corporate value, and that there is insufficient reason to holdthem, the Company will sell those shares while paying
attention to the effect on the market, and so forth.

Strategies for Value Creation

Directors (excluding
External Directors)

Cross-shareholdings
Nittobo’s Value Creation«Reference»
Targets and actual values of company performance for fiscal 2018 used in the calculation of performance-linked remuneration in
fiscal 2019
[Operating profit (compared to budget)] Target: 10,000 million yen* / Actual: 8,198 million yen[Operating profit (year on year)] Target: 10,837 million yen / Actual: 8,198 million yen[ROE (year on year)] Target: 9.4% / Actual: 9.1%
[Dividends (year on year)] Target: 40 yen per share / Actual: 40 yen per share

57

Directors and Officers
Directors (as of June 25, 2020)
Director

Director

Director

Masamichi Ouchi

Sadayoshi Fujishige

Hiroshi Kagechika

Agasa Naito

External

External

Nomination

External
Independent Officer

Nomination

Independent Officer

Chairman of Nomination

Chairman of Audit

Remuneration

Independent Officer
Chairman of Remuneration

External

Audit

Career Summary

Career Summary

Career Summary

Sep. 1975
Jun. 1977
Aug. 1983
Jun. 2007

Mar. 1969
Mar. 1996
Mar. 2000

Apr. 1972
Feb. 2002
Apr. 2003
Apr. 2005
Apr. 2009
Apr. 2015
Jun. 2020

Oct. 2001

Jul. 2007
Jul. 2010
Jun. 2013
Jan. 2015
Jun. 2015

Registered as a tax accountant
Guest Researcher of Mitsubishi Research Institute, Inc.
Chairman and President of Tokyo Chapter, the Japanese Institute of Certified
Public Accountants
Deputy President of the Japanese Institute of Certified Public Accountants
Auditor of the Japanese Institute of Certified Public Accountants
External Auditor of Tsukishima Kikai Co., Ltd. (current)
Established MO Partners, Public Tax Accountant Corporation
Representative for MO Partners Public Tax Accountant Corporation (current)
External Director of the Company (current)

Mar. 2002
Mar. 2004
Mar. 2006
Jan. 2012

Joined NKK Corporation (currently: JFE Holdings, Inc.)
Vice President of NKK Corporation
Vice President of JFE Steel Corporation
Senior Vice President (Director of Steel Research Laboratory) of JFE Steel Corporation
President and Representative Director of JFE Techno-Research Corporation
Advisor of JFE Techno-Research Corporation
External Director of the Company (current)

May 2008
Jun. 2011
Apr. 2013
Jun. 2015
Oct. 2018
Jun. 2020

Remuneration

Audit

Registered as an attorney
Joined Nagashima Ohno & Tsunematsu
Registered as an attorney at New York State Bar Association
Joined TANABE & PARTNERS
Partner of TANABE & PARTNERS (current)
Outside Audit & Supervisory Board Member of BOOKOFF CORPORATION LIMITED
Outside Audit & Supervisory Board Member of BOOKOFF GROUP HOLDINGSLIMITED (current)
External Director of the Company (current)

Reason for Appointment

Reason for Appointment

Reason for Appointment

Reason for Appointment

Mr. Ouchi has a wealth of experience and a high level of insight as an expert inaccounting and finance and as an outside officer of another company. From thosestandpoints, he has actively expressed his opinions at meetings of the Board of
Directors, providing sound advice about business management and supervisingbusiness execution. As such, he has appropriately fulfilled his role as an External
Director, resulting in his appointment.

Mr. Fujishige has a wealth of experience and a high level of insight as a top
manager of listed companies. The Company expects that he will appropriately fulfill
his role as an External Director by contributing to the decision-making of the Boardof Directors and supervising business execution from the standpoint of promoting
sustainable growth and improving the Company’s mid- and long-term corporate
value, resulting in his appointment.

Mr. Kagechika has specialist insight and a wealth of experience in corporate
business and the field of research and development in the manufacturing sector.
The Company expects that he will appropriately fulfill his role as an External
Director by contributing to the decision-making of the Board of Directors andsupervising business execution from the standpoint of promoting sustainablegrowth and improving the Company’s mid- and long-term corporate value,
resulting in his appointment.

Ms. Naito has a wealth of experience and a high level of insight as an expert inlaw and as an outside officer of other companies. The Company expects that she
will appropriately fulfill her role as an External Director by contributing to thedecision-making of the Board of Directors and supervising business execution
from the standpoint of promoting sustainable growth and improving theCompany’s mid- and long-term corporate value, resulting in her appointment.

Director
Representative andChief Executive Officer

Director

Director

Toyoshi Nishizaka

Yu Nozaki

Yuichi Tsuji

Non-executive

Remuneration

Non-executive

Audit

Career Summary

Career Summary

Career Summary

Oct. 2013

Apr. 1981
Jun. 2003
Feb. 2007
Jun. 2008
Oct. 2008
Apr. 2010
Jan. 2011
May 2012
Apr. 2013
Jun. 2014

Apr. 1983
Mar. 2010
Jun. 2010
Apr. 2011

Apr. 2014
Jun. 2014
Nov. 2014

Jun. 2015
Feb. 2016
Jun. 2016

Joined the Company
General Manager of Accounting and Finance Dept.
Operating Officer and General Manager of Accounting and Finance Dept.
Executive Officer, General Manager of Corporate Business Planning Dept.
and Responsible for Corporate Risk Management
Executive Officer, General Manager of Corporate
Business Planning Dept., Responsible for Corporate Risk Management, Human
Resources Dept., Information System Dept., Compliance Management Dept.,
Purchasing Dept., Osaka Branch and Nagoya Branch
Director and Executive Officer
Director and Representative Executive Officer
Director and Representative and Chief Executive Officer (current)

Joined the Company
General Manager of Planning & Administration Dept., Glass Fiber Division
General Manager of Human Resources Dept.
Director and General Manager of Human Resources Dept.
Operating Officer and President of Building Materials Division
Managing Operating Officer and President of Environmental Division
Managing Operating Officer and stationed at Main Branch (Fukushima)
President, Representative Director of Nittobo Allied Service Co., Ltd.
Advisor and Head of Fukuyama Center of the Company
Director (current)

Jun. 2013
Jun. 2015
Oct. 2016
Apr. 2017

Jun. 2017

Reason for Appointment

Reason for Appointment

Mr. Tsuji assumed his office as Executive Officer in 2014 and was responsible
for overall headquarters functions, including the Corporate Business Planning
Dept. and Human Resources Dept. Since 2016, he has presided over the entire
Nittobo Group as Representative and Chief Executive Officer. He has ample
business experience befitting a Director of the Company, and has a broad
range of knowledge and deep insight into the Company’s business, resulting
in his appointment.

Mr. Nishizaka served as General Manager of Human Resources Dept. and Presidentof Environmental Division and has experience in starting up overseas subsidiaries.
He has ample business experience befitting a Director of the Company, and has abroad range of knowledge and deep insight into the Company’s business, resulting
in his appointment.

Apr. 2018

Oct. 2018

Aug. 2019
Apr. 2020

Executive Officers (as of June 25, 2020)
Name

Position and Main Areas of Responsibility
CEO

Minoru Takeuchi

Managing
Executive Officer

President of Research Institute and Head ofMedical SC Newtech Strategy Office

Hiroyuki Tada

Managing
Executive Officer

Responsible for the Corporate Management
Division and the Yarn and Textile Division, andGeneral Manager of the Corporate Business
Planning Division

Kazuhiko Igarashi

Managing
Executive Officer

General Manager of the Glass Fiber Division

Hideyuki Hatanaka

Managing
Executive Officer

Vice President of Research Institute andDirector of Product Planning and Development
Headquarters of Glass Fiber Division

Tatsuo Sakae

Executive Officer

General Manager of the Medical Division and
Chairman and CEO of Nittobo America Inc.

Takanobu Matsunaga

Executive Officer

Deputy General Manager of the Glass Fiber
Division and President and Representative
Director of Paramount Glass ManufacturingCo., Ltd.

Yuji Sugama

Executive Officer

Deputy General Manager of the Medical
Division, General Manager of the Medical
Division Product Planning and Development
Headquarters, and Vice President of the
Research Institute

Akimasa Kajita

Executive Officer

General Manager of the Glass Fiber Division
Production and Technology Headquarters andHead of the Fukushima Factory

Hiroki Kajikawa

Executive Officer

General Manager of the Corporate Planning
Headquarters and Assistant General Managerof the Product Planning and Development
Headquarters in the Glass Fiber Division

Hisanobu Hayashi

Executive Officer

Deputy General Manager of the Glass Fiber
Division Production and Technology
Headquarters and President of NITTOBO ASIA
Glass Fiber Co., Ltd.

Executive Officer

Responsible for the Human Resources Dept.,
Corporate Business Planning Dept., General
Affairs Dept., 100-year Anniversary Project,
Information Systems Dept., Risk
Management Dept., Fukuyama EnterpriseCenter, the Fukuyama Region
Redevelopment Project, Osaka Branch,
Nagoya Branch and General Manager of the
Corporate Business Planning Dept.

Audit

Joined the Company
General Manager of Accounting and Finance Dept.
Director and General Manager of Accounting and Finance Dept.
Managing Director, Deputy Senior General Manager of Corporate Business
Planning Dept. and General Manager of Human Resources Dept.
President and Representative Director of Paramount Glass Manufacturing Co., Ltd.
President and Representative Director of Soyo Co., Ltd.
Executive Officer, Responsible for Human Resources Dept., Accounting and
Finance Dept. of the Company
Managing Executive Officer, Responsible for Human Resources Dept., Corporate
Business Planning Dept., Corporate Communication Dept., Accounting and
Finance Dept.
Director, Managing Executive Officer, Responsible for Human Resources Dept.,
Corporate Business Planning Dept., Corporate Communication Dept., Accounting
and Finance Dept.
Director, Managing Executive Officer, Responsible for Human Resources Dept.,
General Affairs Dept., Corporate Communication Dept., Accounting and FinanceDept. and General Manager of Environment & Health Division
Director, Managing Executive Officer, Responsible for Human Resources Dept.,
General Affairs Dept., Corporate Communication Dept., Accounting and FinanceDept., Risk Management Dept.
Director, Managing Executive Officer, Responsible for Audit Office,Risk Management Dept.
Director (current)

Reason for Appointment

External External Director

Independent Officer Directors who satisfy the Company’s independence criteria and who havebeen notified as independent officers to the Tokyo Stock Exchange

Nomination Member of Nomination Committee

58

Nittobo Group

Remuneration Member of Remuneration Committee

Audit

Non-executive

Director not concurrently serving as an Executive Officer

Member of Audit Committee

Mr. Nozaki served as Deputy Senior General Manager of Corporate Business
Planning Dept. as a Managing Director. He then served as President andRepresentative Director at multiple consolidated subsidiaries. He was a Director
from 2017, and from 2018 until March 2020, he has worked as a Director
concurrently serving as a Managing Executive Officer mainly in charge of
headquarters functions. He has ample business experience befitting a Director of
the Company and has a broad range of knowledge and deep insight into theCompany’s business, resulting in his appointment.

Katsuya Hatanaka* Also serves as Director

Integrated Report 2020

59

Data Section

Yuichi Tsuji*

Representativeand Chief
Executive Officer

Foundation for Value Creation

Nomination

Strategies for Value Creation

Jan. 2014
Mar. 2016
Jun. 2020

Joined Lion Fat & Oil Co., Ltd. (currently: Lion Corporation)
Director, Executive General Manager of International Division of Lion Corporation
Executive Director, Executive General Manager of Home Products Sales Headquartersof Lion Corporation
Representative Director, Senior Executive Director, Responsible for Home Products Business,
Executive General Manager of Home Products Sales Headquarters of Lion Corporation
Representative Director, President and CEO of Lion Corporation
Representative Director, President and CEO, Chairman of the Board of Directors,
Responsible for Home Products Business of Lion Corporation
Representative Director, Chairman and CEO, Chairman of the Board of Directors ofLion Corporation
Representative Director, Chairman, Chairman of the Board of Directors of Lion Corporation
Advisor of Lion Corporation (current)
External Director of SATO HOLDINGS CORPORATION (current)
External Director of the Company (current)

Independent Officer

Nomination

Career Summary
Registered as a certified public accountant

Nittobo’s Value Creation

DirectorConsolidated Financial Statements Nitto Boseki Co., Ltd. and Consolidated Subsidiaries

Consolidated Balance Sheet(Millions of yen)

(Millions of yen)

As of March 31, 2020

Assets

As of March 31, 2019

As of March 31, 2020

Liabilities

Current assets

Current liabilities
16,14522,874

		 Notes and accounts payable—trade

9,415

6,290

		 Notes and accounts receivable—trade25,35325,164

		Short-term borrowings

7,708

7,562

		 Merchandise and finished goods

7,757

7,999

		 Current portion of long-term borrowings

5,290

5,293

		 Work in process

3,978

4,382

		Lease obligations

449

426

		 Raw materials and supplies

16,85016,983

		 Income taxes payable

532

1,103

		Other

2,593

3,495

		 Provision for bonuses

1,110

1,107

(4)

(1)

		Other

7,559

8,024

72,67480,899		Total current liabilities

32,06629,808—10,000		 Allowance for doubtful accounts
		 Total current assets
Non-current assets

Non-current liabilities

		 Property, plant and equipment

		Bonds payable

			 Buildings and structures, net

12,24615,851

		Long-term borrowings

9,696

14,975

			 Machinery, equipment and vehicles, net

13,40022,935

		Lease obligations

2,445

2,058

			Land12,595

15,512

		 Provision for repairs

5,013

5,584

			Leased assets, net

2,414

1,949

		 Retirement benefit liability

9,805

9,887

			Construction in progress

5,973

5,194

		Other

1,232

1,807

892

1,849

		 Total non-current liabilities

28,19344,311

			 Total property, plant and equipment

47,52363,29260,25974,120		Intangible assets

1,680

2,705

			Other, net

		 Investments and other assets

Total liabilities
Net assets
		Shareholders’ equity

21,404

			Share capital

19,69919,699287

233

			Capital surplus

19,037

19,037

			Deferred tax assets

2,935

3,119

			Retained earnings

51,44055,574			Other

1,177

1,206

			Treasury shares(2,544)(2,554)

(36)

(36)

			Total shareholders’ equity

87,63391,757

			 Total investments and other assets

29,12225,927

		 Accumulated other comprehensive income

		 Total non-current assets

78,32691,925

			 Valuation difference on available-for-sale securities

3,542

3,998

151,000

172,824

			 Foreign currency translation adjustment

429

117

			 Remeasurements of defined benefit plans(1,892)(2,219)

			 Total accumulated other comprehensive income

2,079

1,897

		Non-controlling interests

1,027

5,049

		 Total net assets

90,74098,704

151,000

172,824

			Retirement benefit asset

			 Allowance for doubtful accounts

Total assets

Total liabilities and net assets

Nittobo Group

Integrated Report 2020

Data Section

24,757

Foundation for Value Creation

			Investment securities

Strategies for Value Creation

		 Cash and deposits

60

Nittobo’s Value Creation

As of March 31, 2019



61

Consolidated Statement of Income

Consolidated Statement of Comprehensive Income(Millions of yen)(Millions of yen)

For the fiscal year ended
March 31, 2020

Net sales

82,29285,722

ProfitCost of sales

54,632

57,628Other comprehensive income

Gross profit

27,66028,094

Valuation difference on available-for-sale securities

Selling, general and administrative expenses

19,461

19,933Foreign currency translation adjustment

Operating profit

8,198

8,160

Remeasurements of defined benefit plans, net of tax

Non-operating income
63

57

Dividend income

578

560

Share of profit of entities accounted for using equity method

77

29

Rental income8889

Foreign exchange gains

292

—

Other

354

262

1,454

999

Total non-operating income

Total other comprehensive income
Comprehensive income

For the fiscal year ended
March 31, 2020

8,017

5,941

(2,512)

441

(675)

(358)

49

(326)

(107)

107

(3,246)

(136)

4,771

5,804

4,739

5,589

31

215

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

Strategies for Value Creation

Interest income	Share of other comprehensive income of entities accounted for using
equity method

For the fiscal year ended
March 31, 2019

Non-operating expenses
Interest expenses

208

266

Foreign exchange losses—

118

Expenses related to inactive real estate for rent

322

332

Other

187

240

Total non-operating expenses

718

957

8,934

8,202

Gain on sales of non-current assets

1,895

169

Gain on sales of investment securities

883

233

Insurance claim income—

883

Subsidy income

—

993

2,779

2,280

451

264

Ordinary profit

Nittobo’s Value Creation

For the fiscal year ended
March 31, 2019

Extraordinary income

Foundation for Value Creation

Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Impairment loss

92

—

351

Loss on disaster

371

1,083

Loss on tax purpose reduction entry of non-current assets

—

943

Other

25

155

Total extraordinary losses

1,883

2,890

Profit before income taxes

9,830

7,592

Income taxes— current

1,003

1,805

Income taxes— deferred

808

(153)

Total income taxes

1,812

1,651

Profit

8,017

5,941

33

170

7,984

5,771

Profit attributable to non-controlling interests
Profit attributable to owners of parent

62

Nittobo Group

Data Section

1,035

Loss on sales of investments in capital of subsidiaries and associates

Integrated Report 202063

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Shareholders’ equity

Share
capitalBalance at beginningof period

19,699

Capitalsurplus19,037Retainedearnings

45,105

TreasurysharesTotal shareholders’equity(2,538) 81,304

Valuationdifference on
available-forsale securities

6,068

Total
RemeasureForeign
accumulated
ments ofcurrency
otherdefinedtranslation
comprehenadjustment benefit plans
sive income

1,197(1,941)

5,324

Noncontrollinginterests

919—
19,69919,037

45,105For the fiscal year ended
March 31, 2019

For the fiscal year ended
March 31, 2020

Profit before income taxes

9,830

7,592

Depreciation

4,080

5,388

Impairment loss

1,035

92

Increase (decrease) in retirement benefit liability

(512)

(442)

Increase (decrease) in provision for repairs

(967)

570

Interest and dividend income

(642)

(618)

Interest expenses

208

266

Loss (gain) on sales and valuation of investment securities

(883)

(185)

—

351

Accumulated other comprehensive income

	Cumulative effects
of changes inaccounting policies
Restated balance(Millions of yen)

(Millions of yen)

(2,538) 81,304

Total net
assets87,548
—

6,068

1,197

(1,941)

5,324

919

87,548Cash flows from operating activities

Loss (gain) on sales of investments in capital of subsidiaries and associates
Changes during period

Loss (gain) on sales and retirement of non-current assets
Insurance claim income(1,649)(1,649)

7,984

7,984

	Purchase oftreasury shares

(6)

(6)

	Net changes in
items other thanshareholders’ equity
Total changes
during period

—

—

6,335

Balance at endof period

19,69919,03751,4407,984(6)(2,526)(767)

49(3,245)108(3,136)

6,329(2,526)(767)

49(3,245)

108

3,192

(2,544) 87,633

3,542

429

(1,892)

2,079

1,027

90,740

(6)

521

498
566

Increase (decrease) in trade payables

359(2,673)

Other, net

(137)

(173)

Subtotal

7,948

10,444

Interest and dividends received

642

618

Interest paid

(204)

(258)

Proceeds from insurance income—

883

Income taxes paid

(3,068)(1,073)

Net cash provided by (used in) operating activities

5,317

10,614

Cash flows from investing activities
Purchase of non-current assets

For the fiscal year ended March 31, 2020

(Millions of yen)
Shareholders’ equity

CapitalsurplusRetainedearnings

Treasuryshares

19,69919,03751,440(2,544) 87,633

3,542

429

(1,892)

2,079

1,027

Total net
assets(17,176)

3,770

534

Purchase of investment securities(3,954)(51)

Proceeds from sales of investment securities

2,064

835

Purchase of shares of subsidiaries resulting in change in scope of consolidation(511)(1,258)

—

(247)

(122)

447

(11,389)(16,917)

	Payments for sales of investments in capital of subsidiaries and associates
resulting in change in scope of consolidation
Other, net

90,740Net cash provided by (used in) investing activities
Cash flows from financing activities

	Cumulative effects
of changes inaccounting policies
Restated balance

Total
NonValuation
Foreign
Remeasureaccumulated controlling
Total sharedifference on currency
ments ofother
holders’interests
available-for- translation
definedcomprehenequity
sale securities adjustment benefit plans
sive income

Sharecapital(12,634)

Proceeds from sales of non-current assets(85)
19,69919,03751,355(85)(2,544) 87,548

(85)
3,542

429

(1,892)

2,079

1,027

90,655

Net increase (decrease) in short-term borrowings

2,926

(541)

Proceeds from long-term borrowings

9,590

11,462

Repayments of long-term borrowings(6,374)(6,180)—10,000

Proceeds from issuance of bonds
Changes during period

Dividends paid
(1,552)

Dividends of surplus
	Profit attributable toowners of parent(1,552)

5,771

	Purchase oftreasury shares

(10)

5,771

(10)

(10)

—

—

4,218

Balance at endof period

19,69919,03755,574

Nittobo Group

456

(311)

(326)

(181)

4,021

3,839

4,208

456

(311)

(326)

(181)

4,021

8,048

(2,554) 91,757

3,998

117

(2,219)

1,897

5,049

98,704(10)(1,649)(1,552)Other, net

(545)

(559)

Net cash provided by (used in) financing activities

3,948

12,628

Effect of exchange rate change on cash and cash equivalents

(55)

71

Net increase (decrease) in cash and cash equivalents(2,178)

6,398

Cash and cash equivalents at beginning of period

18,324

16,145—

152

16,145

22,695

Increase (decrease) in cash and cash equivalents resulting from change inscope of consolidation
Cash and cash equivalents at end of period

Integrated Report 2020

Data Section

Total changes
during period(1,552)

5,771

	Net changes in
items other thanshareholders’ equity

64

Foundation for Value Creation

Balance at beginningof period

Accumulated other comprehensive income(883)(3,500)Decrease (increase) in trade receivables
Decrease (increase) in inventories

	Profit attributable toowners of parent

94—

Strategies for Value Creation(1,649)Dividends of surplus(1,443)

Nittobo’s Value Creation

For the fiscal year ended March 31, 2019 65Company Profile

Stock Information

Company Profile

Stock Status

Consolidated Subsidiaries

Business Operations
Manufacture, processing, and sale of textile products
Manufacture, processing, and sale of glass fiber products
Manufacture, processing, and sale of chemical products andpharmaceutical products
Manufacture and sale of soft drinks
Planning, supervision, and contracting for construction
Design, manufacture, and sale of machinery and equipment, etc.

Location: Koriyama-shi, Fukushima
Business operations:Production and sale of glass fiber products

Location: Chiyoda-ku, Tokyo
Business operations:Production and sale of in vitro diagnostic
reagents and specialty chemicals

Fuji Fiber Glass Co., Ltd.

Frontier Institute Co., Ltd.

Location: Moka-shi, Tochigi
Business operations:
Production and sale of glass fiber
products

Location: Ishikari-shi, Hokkaido
Business operations:Development, manufacturing and sale ofbioassay kits and consignment ofantibody production

NITTOBO ASIA
Glass Fiber Co., Ltd.
Location: Chiayi County, Taiwan
Business operations:
Production and sale of glass fiber products

Glass fiber cloth
Soyo Co., Ltd.
Location: Chiyoda-ku, Tokyo
Business operations:Sale of glass fiber products, etc.

Shinwa Denzai Co., Ltd.

Business Locations

Location: Chiyoda-ku, Tokyo
Business operations:
Sale of glass fiber products, etc.

Tokyo Headquarters

Baotek Industrial Materials Ltd.

Location:

Location: Taoyuan, Taiwan
Business operations:Production and sale of glass fiber products

2-4-1, Kojimachi, Chiyoda-ku, Tokyo, 102-8489, Japan
Administration Division
Telephone: +81-3-4582-5111
Textile Division
Telephone: +81-3-4582-5160
Glass Fiber Division
Telephone: +81-3-4582-5170
Medical Division
Telephone: +81-3-4582-5450
Beverage Business Department Telephone: +81-3-4582-5480

Osaka Branch
Location:	4-3-10, Kouraibashi, Chuo-ku, Osaka-shi, Osaka, 541-0043, Japan(Nissei Fushimicho Building New Building)
Telephone: +81-6-6208-5015

Nagoya Branch

Fukushima Factory
Location:	1, Aza Higashi, Gonome, Fukushima-shi, Fukushima, 960-8581, Japan
Telephone: +81-24-546-3131

Fiber R&D Center

Telephone: +81-24-546-3138

Nittobo Taiwan Co., Ltd.
Location: Taoyuan, Taiwan
Business operations:
Sale of glass fiber products

Nittobo Macau Glass WeavingCo., Ltd.
Location: Macau
Business operations:
Production and sale of glass fiber products	Glass fiber for industrial
materials
Nitto Glasstex Co., Ltd.

Fukuyama Enterprise Center

Location:	Oizumi-machi, Oura-gun,
Gunma
Business operations:Production and sale of glass fiber products

Location:	1, Aza Shiojima, Fukuhara, Fukuyama-cho, Koriyama-shi, Fukushima,963-8061, Japan
Telephone: +81-24-932-6011

Paramount Glass ManufacturingCo., Ltd.

Fukushima No.2 Factory
Location:	20, Ipponsugi, Sakurashimo, Fukushima-shi, Fukushima, 960-2154, Japan
Telephone: +81-24-593-1231

Research & Development Headquarters
Telephone: +81-24-932-6110

Medical R&D Center

Telephone: +81-24-932-6261

Tomari Enterprise Center
Location:	500, Hirayanagi, Asahi-machi, Shimoniikawa-gun, Toyama,939-0744, Japan
Telephone: +81-765-82-1133

Niigata Enterprise Center
Location:	6-50, Toshincho, Higashi-ku, Niigata-shi, Niigata, 950-0065, Japan
Telephone: +81-25-273-7191
Location: 1-6-1, Kuwazu, Itami-shi, Hyogo, 664-8501, Japan
Telephone: +81-72-782-2621

Satellite Laboratory

Nittobo FRP Laboratory Co., Ltd.
Location: Koriyama-shi, Fukushima
Business operations:
Production and sale of glass fiber
products, etc.

120,000,000 shares

Number of shares issued

39,935,512 shares
1,136,069 shares)
7,833

Nittobo America Inc.
Location:	California, Iowa and Maine,
U.S.A.
Business operations:
Production and sale of antisera used forin vitro diagnostic reagents

Kamiya Biomedical
Company, LLC
Location: Washington, U.S.A.
Business operations:
Production and sale of in vitro
diagnostic reagents

TextilesNittobo Interlining Co., Ltd.
Location: Chiyoda-ku, Tokyo
Business operations:
Sale of interlining

Bunkyo Seiren Co., Ltd.
Location: Fukui-shi, Fukui
Business operations:
Processing of textile products

Nittobo Niigata Co., Ltd.
Location: Niigata-shi, Niigata
Business operations:
Production and sale of core spunyarns, etc.

OthersNittobo Ecology Co., Ltd.

Number ofPercentage ofshares held
shares held*(in thousands)(%)

Japan Trustee Services Bank, Ltd.
(Trust account)

3,076

7.93

The Master Trust Bank of Japan, Ltd.
(Trust account)

2,789

7.19

Sumitomo Real Estate Sales Co., Ltd.

2,383

6.14

Nippon Life Insurance Company

1,614

4.16

The Dai-ichi Mutual Life Insurance
Company, Limited

1,316

3.39

SSBTC CLIENT OMNIBUS ACCOUNT

1,279

3.30

UNIZO Holdings Company, Limited

1,113

2.87

Sumitomo Life Insurance Company

1,082

2.79

AIR WATER INC.

997

2.57

Central Glass Co., Ltd.

948

2.44

Location: Koriyama-shi, Fukushima
Business operations:
Design, manufacture, and sale ofmechanical facilities; design andconstruction of civil engineering workand building

Foreignshareholders
17.43%

Other domestic
corporations
29.03%* The percentage of shares held excludes treasury shares.

Stock-related Administration
Fiscal Year

April 1 to March 31

Ordinary General
Meeting of Shareholders

Late June

Record Date oting rights for Ordinary General Meeting of Shareholders March 31
VYear-end Dividend March 31
Interim Dividend September 30
Other record dates are established as necessary with prior public notice.

Method of Public NoticeP ublic notices are available on the Company’s website below:
https://www.nittobo.co.jp/ (Japanese only)
However, if an electric public notice cannot be posted due to an accident orother unavoidable reason, the public notice will be printed in the Nihon
Keizai Shimbun.

Stock ListingFirst Section of the Tokyo Stock Exchange (Securities code: 3110)

Location: Chiyoda-ku, Tokyo
Business operations:
Various contracted services

Nittobo Techno Co., Ltd.

Securities
companies
0.90%

As of March 31, 2020

Name

Nittobo Allied Service Co., Ltd.
Location: Fukushima-shi, Fukushima
Business operations:
Various contracted services andinsurance agency

Individuals and others
8.31%

Major shareholders

Nitto Beverage Co., Ltd.
Location:	Asahi-machi, Shimoniikawagun Toyama
Business operations:
Production and sale of soft drink

Treasury shares
2.85%(including treasury shares,
Number of shareholders

Financial
institutions
41.48%

Distribution of Shareholders

Shareholder registry1-2-1, Yaesu, Chuo-ku, Tokyo, 103-8670, Japan
administrator and Special
Mizuho Trust & Banking Co., Ltd.
Account Administrator
Data Section

Itami Production Center

Location:	Sukagawa-shi, Fukushima;
Ebetsu-shi, Hokkaido;
Suzuka-shi, Mie
Business operations:
Production and sale of glass wool products

Authorized number of shares

Foundation for Value Creation

Location:	2-14-21, Nishiki, Naka-ku, Nagoya-shi, Aichi, 460-0003, Japan(Maruyama Nissei Building)
Telephone: +81-52-231-5131

Life science
NITTOBO MEDICAL CO., LTD.

Strategies for Value Creation(as of March 31, 2020)

Glass fiber yarn
Nitto Glass Fiber ManufacturingCo., Ltd.

Nittobo’s Value Creation

Dates of establishment
February 1898 Koriyama Kenshi Boseki Co., Ltd. (Koriyama)
April
1918 Fukushima Seiren Seishi Co., Ltd. (Fukushima)
April
1923 Nitto Boseki Co., Ltd.
Head Office at:
Aza Higashi 1, Gonome, Fukushima-shi,
Fukushima, 960-8161, Japan
Headquarters at:
2-4-1, Kojimachi, Chiyoda-ku, Tokyo,102-8489, Japan
Paid-in capital:
19.6 billion yen
Representative andChief Executive
Officer:Yuichi Tsuji
Employees:
2,690 (Consolidated),
830 (Parent company)

As of June 30, 2020

Location:	Suite #3108, 3rd floor, Innovation Center of NanoMedicine 3-25-14,
Tonomachi, Kawasaki-ku, Kawasaki-shi, Kanagawa, 210-0821, Japan
Telephone: +81-44-266-8322

Ni-Tech (Medical SC Newtech Strategy Office)66

Nittobo Group

Integrated Report 202067