Integrated Report

2023

Central Glass Co., Ltd.
Kowa-Hitotsubashi Bldg., 7-1 Kanda-Nishikicho 3-chome, Chiyoda-ku, Tokyo, 101-0054 Japan
TEL. 03-3259-7056
https://www.cgco.co.jp/

Basic Philosophy“Creating a Better Future
Through Monozukuri*”
The Central Glass Group will contribute to the establishment of a truly
prosperous society through the spirit of Monozukuri.
* Monozukuri refers to all the business activities in which the Central Glass Group
engages with a basic stance of integrity and sincerity, including R&D,
quality-oriented manufacturing, and sales.
Basic Policies●

Create new value through innovative technologies.

●

Strive toward harmony with the environment while contributing to the realization of a sustainable society.

●Endeavor to increase corporate value with global growth as our driving force.

●

Aim to be a vibrant enterprise with a pioneering spirit and respect for diversity.
1. Take responsibility for one's own actions, and engage in honest corporate activities.
2. Place our highest priority on the quality and safety of our products and continue to meet our customers’ needs.

Code of
Conduct

3. Refine one's awareness, and constantly pursue original ideas and technologies.
4. Achieve the establishment of a society in which all people can live in comfort and good health, and protect the
global environment.
5. Create products that satisfy customers all over the world by learning about different cultures and customs.
6. Respect the diversity of every individual, and never cease to embrace the challenges of the future.

Concept of Our Initiatives Toward Sustainability Basedon Corporate Philosophy
Based on the Basic Philosophy, the Central Glass Group has made efforts to solve environmental and social issues
through the spirit of Monozukuri, and developed various businesses with the aim of contributing to the establishmentof a truly prosperous society.
Believing that this Basic Philosophy is the very essence of what sustainability means, we will continue to tackle
environmental and social issues more seriously than before, and take on challenges toward the realization of a sustainable society as an R&D-oriented type company.

Contents

Editorial Policy
We created the Integrated Report by integrating the CSR Report and the Annual
Report from this year in order to convey our Group's medium- to long-term value
creation in a more clarifying manner. This report consists primary of materiality,
our value creation process and financial information, in addition to our businessoutline, as well as information on E (Environment), S (Society) and G (Governance).
We will continue to work on the improvement of the content of the report sothat it will serve as a useful communication tool for our stakeholders tounderstand our Group’s activities.

Report Period

2

Value Creation by Central Glass Co., Ltd.
4

History of the Central Glass Group

6

To All of Our Stakeholders

7

President’s Message

12

Central Glass Group Value Creation Process

14

Materiality

16

Financial and Non-Financial Highlights

This report covers the period from April 1, 2022 to March 31, 2023, including
activities before and after the relevant period as necessary.

Scope of the Report
The scope of the report basically includes Central Glass Co., Ltd. and all consolidated subsidiary companies.

Special Feature18

1. Initiatives to Address Climate Change Issues

20

2. Research and Development

23

3. Business Restructuring:
Introduction to Our New Company
Central Glass Products Co., Ltd.

Business Outline

Notes Concerning Future Prospects
This report includes statements on expectations and prospects regarding
strategies and achievements, and plans for the future.
Actual achievements can be different from these expectations and prospects
due to various factors.

[Reference Guidelines]
・The International Integrated Reporting Framework by theInternational Financial Reporting Standards (IFRS) Foundation
・The Guidance for Collaborative Value Creation 2.0 by the
Ministry of Economy, Trade and Industry
・The following was referred to identify materiality
The Global Reporting Initiative (GRI) Standards

Basic Philosophy and Concept of Our Initiatives
Toward Sustainability

24

Glass Business

25

Glass Fiber Business

26

Applied Chemicals Business

2７

Medi-Chemicals Business

2８

Electronic Materials Business

2９

Energy Materials Business

３０

Fertilizers BusinessBusiness Foundation Supporting Our Growth31

Sustainability Management

32

Corporate Governance

36

Environment and Safety

40

Human Resource Strategy and Development

44

Improvement of Product Quality
Company's Circumstances

46

Message from Outside Directors

48

Director Introduction

50

Financial Summary

52

Corporate Outline, Group Companies andStock Information

Central Glass Co., Ltd. aims to improve enterprise value from a long-range viewpoint throughbusiness activities while taking the global environment, society and economy into consideration.

2

Central Glass Integrated Report 2023

Central Glass Integrated Report 2023

3

｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜History of the Central Glass Group
After starting with manufacturing of soda products, we launched the Fertilizers business, Glass business and Glass
Fiber business, and since 1980s, we have further advanced our business into the field of fine chemicals, which is
now our key area. While integrating our basic materials and technology to put out a wide variety of products into theworld multidirectionally, we have adapted ourselves to the changing business environment, and flexibly worked on thetransformation and re-structuring of our business portfolio such as by withdrawing from the soda business, our founding
business. Moving forward, considering the needs of the times, we will contribute to solving social and environmental
issues through business activities while utilizing our accumulated know-how.
Fundamental Chemical Research Center and New-STEP
Research Center

Electronic Materials Research Center Taiwan(Net sales: billion yen)

(Operating profit: billion yen)

250

25

Net sales

Operating profit

200

20

150

15

1937 Ube Plant

10

100

50

5

1964 Completion of Matsusaka Plant

0

0

1950

1936

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

2015

2020 (Year)* Results until 1982 are provided by the non-consolidated result, and those from 1983 by the consolidated result.

SocialTrendsWorld War II

First Oil Crisis

Second Oil Crisis

Plaza Accord

Bubble Collapse

Collapse of Lehman Brothers

COVID-19
Pandemic

From 1936

From 1950

From 1970

From 1980

From 2000

Established as Ube Soda Industry
Co., Ltd. in Ube City, Yamaguchi.

Launched the fertilizers and glassbusiness and altered its corporate name.

Expanded the range of chemical products
and launched glass fiber business.

Expanded into the fine chemicals businessby utilizing its fluorination technology.

Withdrawal of operations and growth in the chemicals business
Structural improvement of the Glass business.

1936
Amid the increasing demand forthe industrialization of chemical
products in the country, Ube Soda
Industry Co., Ltd., the predecessorof our Company, was established tostart the soda business with
regional development in mind.
The company worked on the
production of soda ash used as theraw materials of glass, soap anddetergent, and organic-inorganic
chemical products used as basic
materials in various industries.

4

High Economic Growth Period

Central Glass Integrated Report 2023

1953
Launched the fertilizers business byusing ammonium chloride generated asa result of the conversion of the soda
ash manufacturing process.

1958
Launched the flat glass business using
soda ash as a raw material. Constructed
plants in Sakai City, Osaka, andMatsusaka City, Mie Prefecture.

1963
Altered its corporate name to Central
Glass Co., Ltd.

1971
Launched the continuous glass fiber
business.

From 1974
Constructed a production plant foranhydrous hydrofluoric acid using arotary kiln at Ube Plant andexpanded the production offluorinated chemical products andthe hydrofluoric acid business.

From 1980

Chemicals Business

Aimed at the development and commercialization of products
by giving added value to hydrofluoric acid amid the increased
global attention on the functionality of fluorine compounds.

Business thatwithdrew fromits operation

2003: PVC business2006: Caustic Soda business2018: Calcium Chloride and Soda Ash business

Constructed a multi-plant, etc. for organic fluorinecompounds successively at the Ube Plant, and completed thefoundation of the fine chemicals business.

Growing
Business

Electronic materials for semiconductors,
electrolytes for lithium-ion batteries, etc.

Established a joint venture company for the automotive glass in the U.S.

1990
Started selling inhalation anesthesia using active pharmaceutical ingredients made by our Company. Greatly
contributed to the enhancement of business performance.

Glass Business
Structural
Improvement

2021: Abolished or merged domestic glass business bases.
2022: Withdrew from the overseas glass business.
2023: Integrated the Automotive and Architectural glassbusinesses and made an independent new company.
Central Glass Integrated Report 2023

5

｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜Top M essage

To All of Our Stakeholders
Tadashi Shimizu
Representative Director, Chairman

Central Glass, as our Corporate Philosophy shows, contributes to the establishment of a truly prosperous society
through the spirit of Monozukuri. A truly prosperous society that I have in mind is not a society that only pursues
near-term affluence and convenience, but a sustainable
society that aims to solve various environmental and social
issues, in addition to pursuing prosperity. Central Glass
will further promote initiatives toward the sustainable
society.
Currently, amid the pressing issue of global warmingthat cannot be procrastinated, we will contribute to solving the issue through the research and development of
products to become solutions such as electrolytes for lithium-ion batteries and their commercialization.
Also, we have steadily advanced measures to reduce CO2

6

Central Glass Integrated Report 2023

emissions from our Company itself. As part of the structural reform of the Glass business carried out two years ago,
we reduced the number of furnaces by half, and decreased
our CO2 emissions significantly.
At the same time, through facing up to various issues
that need to be addressed for society including one related
to Diversity & Inclusion, we aim to realize a work environment with a good work-life balance in which all employees
can work more comfortably.
Furthermore, while pursuing efficient and rational management, we have established a solid compliance structure to promote the enhancement of corporate governance.
Central Glass aims to make ourselves a sustainable company through these initiatives, and further improve ourcorporate value through contributing to society.

We will address solutions ofvarious social issues as an
R&D-oriented company.
Kazuhiko Maeda
Representative Director, President & CEO

Resolution at the Appointment of the
New President and My Vision Toward a“Specialty Materials Company”
Central Glass was founded in 1936 as a chemical manufacturer to manufacture and sell soda products. Then, we
began producing fertilizers based on ammonium chloride
produced along with the soda products, and launched into
the Glass business, using soda ash as a raw material, andthen into the Glass Fiber business. Since the 1980s, wehave expanded our business into the field of fine chemicals, our current core business, in which our fluorination
technology is applied.
Recently, however, as the Glass business fell into stagnation due to change in its business environment, we took
decisive actions including the transfer of our Automotive
glass business in Europe and the United States and thefundamental structural reform of our domestic architectural glass business, in an effort to restore profitability. In
addition, after integrating our domestic Architectural glass
and Automotive glass businesses, we made a fresh start asCentral Glass Products Co., Ltd. in April 2023.
In June 2023, when the Company was standing at theturning point, I took the position of Representative Director and President. Feeling tense with the weighty responsibility of taking over the history up until the present, I
have reaffirmed my determination to pave a way toward thefuture for the Company.
Central Glass, which has the Basic Philosophy of “Creatinga Better Future Through Monozukuri,” aims to contribute to
the establishment of a truly prosperous society through thespirit of Monozukuri. We have also clarified our intention of
growing as an R&D-oriented company through the ongoing
Medium-Term Management Plan (from FY2022 to FY2024).
Central Glass Integrated Report 2023

7

｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜After joining Central Glass as a researcher in the fieldof chemicals, I myself have built my career mainly in thesales and planning department. During that time, I have
led the expansion of businesses related to electronic materials for semiconductors and electrolytes for electric vehicle (EV) batteries through launching new businesses in thefield of fine chemicals and establishing overseas affiliates.
Regarding the future corporate management, I will continue to move forward with our businesses to realize our Corporate Philosophy with my long experience in Monozukuri.
First of all, we will endeavor to further develop our business through enhancing our research and development,
particularly by addressing the full-grown three core pillarsof chemicals (anesthetic agents, semiconductor materials
and electrolytes).
As our vision for the future, we should set a target oftransforming the Company into a “Specialty Materials
Company” by 2030 based on the idea of materials including glass. The role of the ongoing Medium-Term Management Plan is to build a solid foundation for the next Medium-Term Management Plan (from FY2025 to FY2027),
which will serve as a step toward the realization of a Specialty Materials Company, and we are working with our utmost energy toward achieving the goal.

8

Central Glass Integrated Report 2023

Securing of a Profit Margin of 5% by the GlassBusiness for the First Time in 19 Years, andSteady Growth of the Chemicals BusinessLooking back on the business environment of FY2022, we
can see that there continued to be growing uncertainty
about the world economy due to various factors including the soaring raw material and fuel prices due to theprolonged invasion of Ukraine by Russia and the effect of
economic sanctions on Russia, concerns over U.S.-China
conflict and the Taiwan issue, and the financial systeminstability caused by a tightening of monetary policy taken
against the inflation pressure in European countries andthe U.S. In Japan, the movement restrictions due to the
COVID-19 pandemic were beginning to be relaxed andthe economy started to show mild improvement with therecovery of economic activities and improvement in employment. On the other hand, the domestic economy stillfound itself in an unstable situation with a rapid depreciation of yen, soaring raw material and fuel prices, and acontinuous increase in consumer prices.
Under such circumstances, the sales of the Glass business declined to half compared with the previous fiscal
year because of the rearrangement of sales and production■

Glass Business(Billion yen) 150.7
150

■

(%)
20

144.2

112.4

120

111.8

15

Chemicals Business(%)
20(Billion yen)
150

114.6

120

12.2
90

90
10

54.7

60

4.9

10

5

5
30

0.3
0.5

2018

0

2019
Net sales(left axis)

9.6

2.7

0
-3.0
-2.7

-30

10.4

78.3
9.1

78.2 10.2

79.2

15

12.3

60

30

0

94.4

2020
Operating profit(left axis)

-2.5

0

0

-5

-30

8.0

7.1

9.8

14.1
0

-2.2
2021

2022 (FY)Operating profit ratio(right axis)

bases and the revision of product prices due to soaring
raw material and fuel prices; however, the operating profit
improved by 5.2 billion yen, resulting in securing an operating profit ratio of 5% for the first time in 19 years.
Regarding the Chemicals business, sales in the semiconductor market slowed down compared with those of
the previous fiscal year, when electronic materials soldwell, partly due to inventory adjustments by users, which
resulted in a decrease in sales. On the other hand, thesales in the energy material business exceeded those in
the previous fiscal year, thanks to the EV market growthfollowed by the rapid expansion of the sales of electrolytes
for lithium-ion batteries. In the electrolyte market, where
raw material prices and selling prices tend to fluctuate
dramatically, the Central Glass Group has established production bases including joint venture companies in Japan,
Asia and Europe to create a global supply chain, which enabled stable raw material procurement and in-house production of additives, key materials, leading to the securingof profits. In the field of applied material chemicals, we
increased sales by expanding the sales of next-generation
blowing agents, products made from hydrofluoroolefins(HFOs) as well as by revising prices of various products.
As a result, the sales of the Chemicals business greatly
exceeded those of the previous fiscal year, with its operating profit reaching approximately 14 billion yen, withwhich the overall operating profit target for the final year
(FY2024) of the Medium-Term Management Plan was almost achieved.
In terms of priority areas to be addressed in the future,in the Glass business, we will proceed with discussion andconsideration on measures to continuously and stably secure
the profit that turned positive by the structural reform as well
as future investment policies on a company-wide basis. As for
the Glass Fiber business, we will focus our efforts on securing
profit by promoting a shift to high value-added products.

-5
2018

2019
Net sales(left axis)

2020
Operating profit(left axis)

2021

2022 (FY)Operating profit ratio(right axis)

Regarding the Chemicals business, as mentioned earlier, we will continue to grow the three core pillars of semiconductor materials, electrolytes for lithium-ion batteries,
and fluorine-based general anesthetic Sevoflurane, in order to steadily make profits. As for the Fertilizers business, there are concerns about the environmental burden
from coating agents used in a coated fertilizer, Cera-coatR,
designed to contribute to the streamlining of agriculturalwork. In response to this, we will promote the researchand development of environment-friendly materials andthe commercialization of new fertilizers.

Research and Development Efforts in the
Fields Expected to Develop in the Future
We are promoting research and development of new products based on the recognition that the business fields that
we can expect in the future are semiconductors, energy, andlife sciences not just for our group but for Japan as a whole.
In the field of semiconductors, we are working on thecommercialization of materials for next-generation power
semiconductors, silicon carbide (SiC) wafers, contributing
to the performance increase of rapidly spreading EVs. As
SiC power semiconductors can significantly reduce energy loss that occurs at the time of power conversion, weare presently working on their development with a view toestablishing a technology to mass produce 6-inch ingots
using the solution growth method. As our program to develop 8-inch ingots, ones with a wider diameter, has been
adopted as one of the Green Innovation Fund Projects of
the New Energy and Industrial Technology Development
Organization (NEDO), we will advance their development
while making good use of a subsidy.
In the energy material field, we are working on research anddevelopment of sodium ion batteries. Since lithium for lithium-ion batteries, which are now the mainstream of batteries
Central Glass Integrated Report 2023

9

｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜for EVs, is one of the rare metals, there is a concern that its
supply conditions might become tight with the widespreadof EVs. Accordingly, some companies are working toward thepractical use of sodium ion batteries, low-cost ones using
earth-abundant sodium, which can be used as a substitutefor lithium. Having worked on the research and developmentof sodium ion batteries for years, we have patents related tomaterials for such batteries, and also have a plan to have our
joint venture companies in China produce and supply sodium
hexafluorophosphate serving as main material for electrolytes.
Moreover, regarding the life science business, we willreevaluate conventional pharmaceutical products, and will
newly launch new business projects.

Contributing to Solving Social Issues
through Initiatives toward Sustainability andMonozukuri
Based on the Basic Philosophy of “Creating a Better Future■

Consolidated Sales Composition Ratio

Chemicals Segment

Others 3%

Total 68%

Through Monozukuri,” the Central Glass Group has developed various businesses with the aim of contributing
to the establishment of a truly prosperous society, while
making efforts to solve environmental and social issues
through the spirit of Monozukuri. Believing that this is thevery essence of what sustainability means, we will continue to tackle global environmental issues and various
social issues seriously, and work on the realization of asustainable society as an R&D-oriented company, aiming
to improve our corporate value.
As a means of developing a structure to address sustainability, we established the Sustainability Committee,
which comprehensively grasps, analyzes and evaluates
measures and promotion activities for sustainability, andmake a report and a recommendation to the Board of Directors as necessary.
In addition, after identifying materiality that emphasizes
sustainability, we established priority issues for 11 itemsin three areas as well as KPIs for initiatives to tackle them,and then we positioned the provision and development of
products that solve social issues as the most important
initiatives among them. Considering that many of our businesses leverage the strength of fluorine chemistry, we willcontribute to solving social issues by means of fluorine
chemicals.
One of the examples is electrolyte for lithium-ion batteries. We also declare in our Basic Policies that we will provide products that are friendly to society and the environment to support various industries, such as by developinghydrofluoroolefin-based foaming agents and solvents whose
global warming potential (GWP) is close to one, as well as
by promoting a shift from existing high-performance semiconductors with high GWP to products with low GWP.
On the other hand, regarding our attitude toward humancapital, we have a systematic educational program to support the growth and self-realization of individual employees■

Consolidated Operating Profit

2.7 billion yen 16%

Glass Segment

Total 32%

Glass Segment

Architectural
glass

13%

Fertilizers

9%

Automotive
glass

169.3

billion yen

14%

16.8

Efforts to Improve Our Corporate Value for
the Stakeholders

billion yen

Glass Fiber

5%
Energymaterials

21%
Electronic materials 11%

Applied material
chemicals
Medi-Chemicals 10%

10 Central Glass Integrated Report 2023

14%14.1 billion yen 84%

while making good use of our corporate culture characterized by “amenableness and earnestness” based on thehuman resources development policy. Our Career Creation
Center takes a lead in promoting this program while updating the content of the general education, the Monozukuri
education and the career development education every year.
As a personnel strategy, with a slogan of “Securing of theFour Things (securing of acceptability, securing of a place
to stay, securing of equity, and securing of fairness),” whileproviding the opportunities and environments, we will contribute to the creation of human resources and corporate
culture that always brings smile to all group members’ faces, and promote psychological safety at work.

Chemicals Segment

Central Glass has allocated a certain portion of the total
investment for improvement in the profitability of existing
businesses. However, now that the fundamental structural reform of the Glass business is almost done and wefind ourselves in a situation that we can make profits, wewill clarify our intention to allocate investments to growthareas that will bring an improvement in our corporate value
based on a solid growth strategy as well as to return theobtained profits to our stakeholders.
From my personal perspective, I find the present targetof the total return ratio of 30% is somewhat low as a targetof a company making profits with high-valued added businesses. We have maintained this level by restructuring ourbusinesses while securing stable dividends; however, once
making sure of reaching a situation that allows us to stably
and continually make profits, we will pursue the idea ofincreasing the return ratio.
We would like to continue to make concerted efforts
company-wide to go forward step-by-step as the newlyborn Central Glass Group under the key phrase of “Creation and Challenge.” Aiming at transforming ourselves
into a “Specialty Materials Company” by 2030, we willunitedly apply ourselves to the accomplishment of theongoing Medium-Term Management Plan, and lay groundwork for the next Medium-Term Management Plan.
We sincerely ask our stakeholders for continued support
and would like you to look forward to the development ofCentral Glass Group.

Central Glass Integrated Report 2023

11

｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜Central Glass Group Value Creation Process
We will contribute to the realization of a sustainable society through our business activities as an R&D-oriented company
under the slogan of “Creation and Challenge”.

Input [FY2022]

Business Activities

Output and Outcome

Financial Capital

Economic Value■ Financial Base Supporting Value
Creation
Consolidated Total Assets
221.1 billion yen

46.8%
Equity Ratio
Rating (End of March, 2023) Aｰ (JCR)(Target Indications and Final Fiscal Year-Targetsof Medium-Term Management Plan)

Corporate Philosophy“Creating a Better Future Through Monozukuri ”
The Central Glass Group will contribute to the establishment ofa truly prosperous society through the spirit of Monozukuri.

Manufacturing Capital■ Amount of Capital Investment
7.1 billion yen■ Introduction of Energy Saving
Equipment■ Introduction of Internal Carbon
Pricing (ICP) System

Glass Business

MediChemicals
Business

Human Capital■ Various Human Resources

Glass Fiber
Business

EnergyMaterials
Business

Electronic
Materials
Business(For details, refer to Page 40)

Consolidated numberof employees

3,350
AppliedChemicals
Business(End of FY2022)

Intellectual Capital

Fertilizers
Business■ Promotion of Open Innovation
Cost for R&D

5.6 billion yen(For details, refer to Page 20)

Number of patents
held by the Company

2,213

Social Capital■ Emphasis on Dialogue with Stakeholders
Total number of
personal interviews

63

Natural Capital■ Reduction of Environmental Impact
Overall energy use
5,247 TJ
10,345 Thousand of m3
Water use

12 Central Glass Integrated Report 2023

R&D Supporting Our Growth
Focus
Areas

Energy saving, lowering of GWP, SiC,
and capture and utilization of CO2

Priority[Electronic Materials]
Research Environment-friendly semiconductor materials,
next-generation materials (SiC), etc.
Areas
[Energy Materials]

Development of electrolytes (for EVs and stationaryuse) and post-Li-ion batteries

FY2022
Results

Long-Term Vision■ Continuously Growing Company Driven by New
Technologies and New Products Createdthrough R&D■ Basic Measures(1) Strengthen R&D as a growth driver.
(2) Clarify roles of each business and optimize
the business portfolio.

Medium-Term Management Plan
(Mid-Term Plan)

P14

Operating profit 16.8 billion yen 14.0 billion yen
Operating profit
ratio

9.9 %

8%

ROE

37 %

12 %

136 %

At least 30 %

3.5 %

3.6 %

Total Return
Ratio
Dividend on
Equity (DOE)

Social Value■ Basic Policies(1) Achieve new growth by strengthening
our business foundations and originaltechnologies.
(2) Maintain a healthy financial base.
(3) Contribute to the global environment
Priority issues to address (Materiality

FY2024
Targets

Contributing to GHG reduction by providing
environmental contribution products
Strengthening R&D focusing on energy
saving and lowering of GWP)“Solution of Social Issues ThroughBusiness Activities”“Measures for Environmental Protection”

Aiming to reduce GHG emissions
by 40 percent in 2030 comparedwith FY2013 emissions levels,and to achieve net zero by 2050
Promotion of D&I and enhancementof human resource development“Enhancement of Our Business Foundations”
Improvement of quality management[Medi-Chemicals]

Promotion of medical materials development andpharmaceutical research with focus on life science

Enhancement compliance system

Central Glass Integrated Report 2023

13

｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜Materiality■

KPI
Fields■[Environment]

Materiality(1) Materiality-Identifying Process
By taking the following process, we evaluate risks and opportunities in terms of both importance to our Company
and importance to our stakeholders to identify Materiality and KPIs.
Step 1

Select candidate issues based on the international guidelines (GRI and ISO26000) and the investigation content
from the Sustainability Committee while considering requests from society.

Step 2Comprehensively evaluate such issues at the Sustainability Committee from the two viewpoints of importance to
our Company and importance to our stakeholders, and formulate a tentative plan.

Step 3After taking this identifying process, we have identified on priority issues for eleven items in three areas as well as
KPIs for initiatives to tackle them. In particular, considering relationships with the business, “Solution of Social
Issues Through Business Activities: Provision and Development of Products that Solve Social Issues” is positioned
as a top-priority issue.

Extremely important
Very important

Importance to Our Stakeholders

Materiality Matrix

Important

I
Solution ofSocial Issues
ThroughBusiness
Activities

●

H

D

I

B

C

F

G

J

●

[Environment]
A. Provision and Development of
Products that Solve Social Issues

II Measures forEnvironmental
Protection

B. Measures for Climate Change
C. Improvement of Energy Use Efficiency

III Enhancementof Business
Foundations

Extremely important

Importance to the Company[Society]
D. Diversity & Inclusion
E. Enhancement of Human Resource
Development
F. Improvement of Quality Management
G. Promotion of Industrial Health and
Safety, and Security and Disaster
Prevention
H. Enhancement of Supply Chain
Management
I. Respect for Human Rights[Governance]
J. Enhancement of Compliance System
K. Enhancement of Corporate Governance

Provision and expansion of environmental contribution products[Chemicals Business Department](Total sales of low-GWP and energy-saving products)

A. Provision and Developmentof Products that Solve
Social Issues

Provision and expansion of coated fertilizers contributing to food issues[Fertilizers Business Department] (contributing to the expansion of yieldamount and energy saving)

14 Central Glass Integrated Report 2023

FY2023 Targets

78.5 billion yen

84.0 billion yen

100.0 billion yen

98%

126%

156%

(final fiscal year of
medium-term)

Provision and expansion of coated fertilizers contributing to food issues[Fertilizers Business Department] (contributing to the expansion of yieldamount and energy saving)
als and next-generation materials (SiC)• Battery Materials: Electrolyte (EV and stationary) and Post-Li-ion

battery development★ Promote medical materials development and pharmaceutical researchwith focus on life science as a next-growth area
Reduction of GHG Emissions (Scope 1 and 2)

II
Measures forEnvironmental
Protection

 easures for Climate
Ｂ. M
Change Issues

GHG avoided emissions by providing environmental contribution products*2

36.0 ten thousand
tons CO2

33.2 ten thousand tons CO2(370 thousand tons CO2)

*1 In FY2022, withdrawal from the automotive glass businesses
in United States and Europe and the operational suspension ofsome of the domestic glass melting furnaces led to significant
reduction. Short-term reduction goals for 2023 and 2024 were
determined based on the emissions of FY2022 (370 thousand
tons CO2), which excluded special factors such as the large-scale
periodic repair work conducted in the same year.

*1

35.0 ten thousand
tons CO2

100
96.7

95.0

89.5

50

80.4

79.2

GHG emissions (ten thousand tons)

33.2

0
2013

2018

5.3 million tons CO2

2019

2020

6.0 million tons CO2

2021

2022

6.8 million tons CO2*2 Based on the CO2 emissions reduced at the use stage of the final products that use our Company’s environmental contribution products, the avoided emissions
are estimated by using our Company’s unique formula to calculate emissions to be reduced by a one-year use based on the sales volume of our Company.

C. Resource utilizationand the promotion of
streamlining[Society]

D. Diversity & InclusionE. E
 nhancement of Human
Resource Development

III
Enhancementof Business
Foundations

F. Improvement of Quality
Management

Improvement of GHG emissions intensity (GHG emissions/Net sales)

2.0t CO2/million yen

2.1t CO2/million yen

1.8t CO2/million yen

Reduction of Water Use (Improvement of water intake intensity per sales:
Total water intake/Net sales)

61.1m3/million yen

61.1m3/million yen

55.6m3/million yen

Reduction of the Final Disposed Amount of Industrial Waste

15.6 thousand tons

10.0 thousand tons

8.8 thousand tons

Improvement of female employee ratio in career-track employees

13%

14%

15%

Improvement of ratio of male employees utilizing parental leave

39.7%

50%

55%

Improvement of employment rate of persons with disabilities

2.18%

2.5%

2.6%

Promotion of Diversity & Inclusion management education(encouragement for managers to attend lectures)

15% (cumulative
attendance rate)

45%

60%

Encouragement to take paid leave (including secondees)

67.5%

At least 80%

At least 80%

Expansion of opportunities for employee education (training time per person)

18 hours

22 hours

25 hours

Improvement and enhancement of education for employees including
those of our Group companies

FY2022
Results

FY2023
Targets

FY2024
Targets

Final Goals

Reduction of the number of complaints (year-to-year reduction rate)

24%
reduction

Reduction of
25% or more

Reduction of
25% or more

Zero complaint

Maintenance/improvement of quality of audits implemented bycontractors (year-round auditing executing rate)
Improvement of quality education

G. Promotion of Industrial Health and
Safety, and Security and Disaster
Prevention

Aim to improve the value of the Group’s human capital by improving and supporting education for employees of our Group companies (domestic and overseas) tofurther develop their skills.

Initiatives/Key Performance Indicators (KPIs)

83%

At least 90% At least 90%

100%

Improve workers’ proficiency level by providing group-wide quality education, enhancing the content of Monozukuri Education at production sites,
and increasing the opportunities.

Promotion of industrial health and safety(number of accidents that require time off from work)

6

0

0

0

Promotion of security and disaster prevention(number of serious accidents)

0

0

0

0

H. Enhancement of Supply
Chain Management

Promotion of CSR procurement

Conduct investigation and evaluation concerning the CSR of business
partners. Follow up the status of their CSR procurement as necessary.
Conduct investigation and evaluation on 100% of the new business partners and increase investigation cover ratio.

I. R espect for Human Rights

Enhancement of initiatives for respect for human rights

Actively conduct enlightenment activities in-house while further clarifying
and disseminating our human rights policy.

[Governance]
J. E
 nhancement compliancesystem

Improvement/enhancement of compliance education

Continue and further improve internal education (frequency and areas tobe covered)

Improvement of evaluation on the effectiveness of the Board of Directors

Further improve its effectiveness through performing a self-assessment
questionnaire survey (on a five-point scale). The result of FY2022 survey
was 4.1. Disclose the issues identified through the survey and confirm
how to respond to them to further enhance the governance of the Boardof Directors.

[Background of the Top-Priority Issue and Its Concept]
The realization of a decarbonized society is a global challenge that cannot be procrastinated, and there
remains much room in which our Group can make contribution in terms of sales and development in important areas, such as the reduction of greenhouse gas (GHG) emissions, the electrification of vehicles,
energy saving, etc. We also believe that taking such initiatives will create business opportunities andmeet the expectations and needs of our stakeholders.

FY2024 Targets

FY2022 Results• Electronic materials area: Environment-friendly semiconductor materi-Enhancement of R&D capability(Focus areas: Energy saving, lowering of GWP, SiC, capture andutilization of CO2, and PFAS response)

Materiality

I Solution of Social
Issues ThroughBusiness Activities

E

K

Very importantA

Fields

Initiatives/Key Performance Indicators (KPIs)

Provision and expansion of environmental contribution products [GlassBusiness Department] Sales volume ratio of eco-glass and heatinsulation automotive glass compared with FY2021

Clarify their relationships with the management policies, the Midterm Plan, etc. and discuss them at the Boardof Directors to identify priority issues.

(2) Materiality Matrix●

Materiality (ESG)K. E
 nhancement of Corporate
GovernanceCentral Glass Integrated Report 2023

15

｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜Financial and Non-Financial Highlights
Financial Highlights■■■ Net Sales/Operating Profit/Operating Profit Ratio■ Total Assets/Net Assets/Equity Ratio(Billion yen)
250

(%)

229.9

12.0

222.5

10.0

190.7

200

169.3
8.0
150

350

284.9

290.7

58.1

168.9

164.3

4.0

3.5
50

2.1

10.1

8.0

4.1

7.3

2019

2020

2021

2.0

16.8

0

Net sales(left axis)

Operating profit(left axis)

0

0
2019

2020

2021

Net Assets(left axis)

80

7.6

40.0

0

10.0

6.4

1.2

3.9

4.5

0.8

-40

-27.3

-39.8

73.4

72.1

3

50

30

0.5

53.8

0.45

0.43

0.44

1.0

80.4

0
2020

2021

2022

3.0

2.0

2.0

33.2
1.0

(people)
1,700

1,671
1,633

1,631

1,630

1,600

10.9

10.6

10.8

2018

2019

Scope 1 (left axis)

2020

2021

Scope 2 (left axis)

2022 (FY)Intensity (right axis)■ Final Disposed Amount of Industrial Waste(%)(Thousand tons)

14.0

30

13.0

1,570
10.4

0.0
2013

Ratio of R&D Costs to Sales (right axis)

20.8

12.0
20

17.3

11.0 11.0

15.6

14.1

12.6

10.0
9.0

1,400

10

8.0

0.1

10

79.2

0

2023 (FY)(Forecast)

0.3
0.2

4.0

40

1,500

20

3.8

89.5

20

0.4

0.38

4.0

95.0

1

0.6

65.1

96.7

60

■ Full-Time Employees/Ratio of Full-Time Female Employees
0.7

100

4.2

80

4

Costs for R&D (left axis)

0.63

60

-10.0

-30.0

5.6

5.4

0

(Times)

62.7

40

-20.0

5.7

6.5

4.1

2.0

2019

70

0

-20

3.0

2.6
5.9

5.0

120

3.0
2.6

(tons-CO2/million yen)
5.0

3.3

6

Equity Ratio(right axis)(Billion yen)

20.0

7

2022 (FY)(Billion yen)

20

3.6

9

2

Total Assets(left axis)

30.0

30.0

10.0

■ Interest-Bearing Debt/Debt-to-Equity Ratio

42.5

40.0

50

■ Profit Attributable to Owners of Parent/Return on Equity (ROE)

40

140

20.0

Operating profit ratio(right axis)

37.0

4.0

100

2018

(%)

10

5

130.1

2022 (FY)60(10 thousand tons-CO2)

70.0

107.9

0
2018

(%)

50.0

46.8

43.4

169.1

150

3.6

(Billion yen)

8

221.1

■ GHG Emissions (Scope 1 and 2)

(%)

60.0

54.3

53.8

250

6.0

4.4

296.4

300

200

100

■ Costs for R&D/Ratio of R&D Costs to Sales(Billion yen)

307.1

9.9

206.2

Non-Financial Highlights

-40.0
-60

0
2018

2019

2020

2021

Profit Attributable to Owners of Parent(left axis)

2022 (FY)ROE(right axis)

(Yen)
140

(%)
300

2020

250

247

200

75

75

40

47

20

2019

2020

Number of full-time employees(left axis)

2021

2018

Ratio of full-time female employees(right axis)(hours)
10.0

(%)

100.0

2.5

80.0

2.0

60.0

1.5

4.0

40.0

1.0

2.0

20.0

0.5

0

0.0

0

9.1

150

100

10

50

5

0

0

70.2

69.2

19.4

20

15

7.4

6.0

2022 (FY)
Overseas Affiliates

67.5

60.6

59.6

2021

8.6

7.9

8.0

22.7

2020
Domestic Affiliates■ Lost-Time Incident Rate

(%)

9.5

2019

Central Glass Co., Ltd.

(Billion yen)
30

25

0

2022 (FY)■ Average Overtime Work per Month/Ratio of Employees Taking Annual Paid Leave

16.9
136

7.0
2018

■ EBITDA (Operating Profit + Depreciation)

75

60

1,300

2022 (FY)Debt-to-equity ratio(right axis)

20.9

100

75

2021

25.8

115

120

2019

Interest-bearing debt
(left axis)■ Dividend per Share/Total Return Ratio

80

0
2018

40
0
2018

2019

2020

Dividend per share (left axis)

2021

2022 (FY)

Total return ratio (right axis)* In 2021, we posted a profit attributable to owners of patent, but conducted a
distribution according to the stable dividend policy from a long-term perspective.

16 Central Glass Integrated Report 2023

2018

2019

2020
EBITDA

2021

2022 (FY)

2018

2019

2020

Average Overtime work per month(left axis)

2021

2022 (FY)

Ratio of employees taking annual
paid leave (right axis)

2018

2019

Central Glass Co., Ltd.

2020

2021

Domestic affiliates/
business partners

2022 (FY)
Chemical industry* The number of casualties due to workplace accidents that result in lost work hours per
million actual working hours

Central Glass Integrated Report 2023

17

Special Feature1｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜Initiatives to Address
Climate Change Issues

Challenge to the Reduction of GHG Emissions/Carbon Neutrality
Our Group declared its resolve to “take on the challenge ofachieving net-zero GHG emissions in 2050” in May 2022,
and has been vigorously promoting activities to steadily
reduce GHG emissions (Scope 1 and 2) at the manufacturing stage.
We also direct our efforts to the development and saleof environmental contribution products contributing to the
reduction of GHG emissions by the entire society with theobjective of reducing GHG emissions during the entire
product life cycle. In addition, to accelerate initiatives foremission reduction, we will introduce the internal carbon
pricing (ICP) system in FY2023, and promote investment
for the reduction of emissions by reflecting environmental
value in investment decisions.
●

Information Disclosure Based on TCFD Recommendations

In the ICP system, we have set an internal carbon priceof 10,000 yen /t-CO2 based on projections of future carbon prices, and we use this price in two ways: to incentivize investors to invest in reducing carbon emissions, andto assess the financial impact.

GovernanceCentral Glass Group Medium- and Long-Term Targets
for the Reduction of Greenhouse Gas (GHG) Emissions
2030 years

40% reduction from FY2013 level2050 years

Taking on the Challenge of Achieving
Net-Zero GHG emissions

We assume that risks and opportunities related to climate change will have the following impacts
on our business.

GHG Emission Reduction During the Entire Life Cycle

Products Contributing at Use Stage

Technology Contributing to GHG Reduction in
Manufacturing Process(Not Subject to the Reduction of Our Emissions)

・Fuel conversion (LNG, total oxygen combustion,hydrogen, and ammonia, etc.)
・Heat source conversion
・Waste heat recovery
・Various kinds of renewable energy
・Improvement of resource efficiency by effective useof by-products

・Battery electrolytes for EVs
・Low GWP products (next-generation fluorine-based blowing
agents, etc.)
・Power semiconductor materials
・Architectural glass (high heat insulating and shielding
performance)
・Automotive glass (automotive weight-reducing thin laminatedflat glass)

Strategy

18 Central Glass Integrated Report 2023

●

Risks

Opportunities

Political
Measures/Legal
Restraints

Increase in cost for energy and raw materials following the
introduction of a carbon tax and the tightening of targets
for the reduction of CO2 emissions

Improvement of intensity by promoting the
introduction of energy-saving technologies (costreduction)

Technologies

Recovering of costs for technology development to develop
technologies for decarbonization, etc

Expansion of revenue-generating opportunities
by the development and sale of products
contributing to decarbonization (low GWP
products, products contributing to energysaving, etc.)

MarketSensitivity to consumption behavior/needs and timely
response

Reputation

Market valuation affected by a lack of appeal regarding
the efforts made for decarbonization

Increase in market valuation by appealing to themarket with energy-saving technologies andproducts contributing to decarbonization

Introduction of Internal Carbon Pricing System
Our Group has introduced the internal carbon pricing (ICP) system since June 2023, as part of ourefforts for achieving targets for the reduction of GHG emissions (Scope 1 and Scope 2). This system
uses in-house carbon prices to visualize carbon cost, which can be utilized in decision-making for
capital investment. Our Group will promote investment for the reduction of emissions in response tofurther increasing demands for the reduction of greenhouse gases in the future.

Progress of Concrete Initiatives Toward Emission Reduction
As one of the concrete initiatives toward the reduction of GHG
emissions, our Group is moving ahead with the introductionof the best available technology (hereafter referred to as BAT)
step by step. In the glass fiber field, in FY 2022, we introduced the oxygen combustion technology that had been introduced for a glass wool furnace, for a furnace to produce continuous glass fiber as well to reduce CO2 emissions derived
from fuel usage. At the same time, we are proceeding withdiscussions on the introduction of electricity derived fromrenewable energy, which is included in the BAT technology,
while effectively utilizing the ICP mechanism.
Moreover, in addition to the proactively introducing the BAT
technology, we are promoting the development and introduction of innovative technologies including the one for the shift
to non-fossil fuels.
In FY2022, we implemented withdrawal from the Automotive glass businesses in United States and Europe, and suspended the operation of some of the domestic glass furnaces,
which led to reducing GHG emissions to 332 thousand tonsCO2. (58% reduction from the previous fiscal year)

In our Group, the Management Committee, a decision-making body concerning execution of business
operations, discusses how to address environmental issues including climate change issues and social
challenges, and makes decisions. We have also established the Sustainability Committee with the aimof analyzing and evaluating the progress of initiatives for each issue in a cross-sectoral manner while
discussing each policy to deal with such issues as necessary. The committee also reports findings to
the Board of Directors and makes recommendations as needed. In response to the matters discussed by
the Management Committee and the Sustainability Committee, and their recommendations, the Boardof Directors discuss what initiatives our Group should take to address environmental challenges andsupervise their progress.

Reference: In-house carbon price (at the time of introduction) 10,000 yen/t-CO2

GHG emissions (Scope 1 and 2)(10 thousand tons-CO2)
140(tons-CO2/million yen)

Risk
Management

Regarding risks involved with business operation, each department identifies risks and evaluate theirimpact and report them to management as needed. In addition, the Sustainability Committee sharesbusiness risks, opportunities and measures in a cross-sectoral manner, analyze and evaluate them asnecessary and make reports and recommendations to the Board of Directors as needed.
Regarding GHG emissions (Scope 1 and Scope 2), in particular, we have operated the target management scheme for the reduction of GHG emissions relating to medium- to long-term targets since
FY2023 toward achieving the 2030 targets and net-zero GHG emissions in 2050. In the operation ofthis scheme, as main measures, we estimate future emissions, evaluate the probability of achieving targets, formulate action plans for emission reduction and revise the plans as necessary, which we position
as the key process in our Group’s activities for the reduction of GHG emissions.

Indicators andTargets

・Aim to achieve 40% reduction of GHG emissions (Scope 1 and Scope 2) for the entire Group including
overseas affiliates from FY2013 level in FY2030.
・Aim to achieve net-zero GHG emissions in 2050.

5.0
5.0

120
100

4.1
96.7

95.0

4.0

4.2
3.8

4.0

89.5
80.4

80

79.2

60

3.0

2.0

40

2.0

33.2
1.0

20

0.0

0
2013

2018

Scope 1 (left axis)

2019

2020

Scope 2 (left axis)

2021

2022 (FY)Intensity (right axis)

Since this fiscal year, the data on GHG emissions have been changed
to represent the total emissions amount from our Company and theconsolidated companies (in the past: the area within the reach ofoperational control), and the historic data have also been changed in
the same manner.

Central Glass Integrated Report 2023

19

2

Research and Development

In line with the Basic Philosophy of “Creating a Better Future Through Monozukuri,” we aim to be a company that
continues to grow driven by new technologies and products
emerging from research and development, accelerating ashift to R&D-oriented company. We are conducting R&D
while showing deeper concern for comfortable daily life, theglobal environment, and health and safety than ever before.
Since July 2022, after clarifying the roles of the creationof basic technology, the efficient development of functional
materials, and the role of corporate research respectively,
we have newly promoted our R&D at the three research laboratories: the Fundamental Chemical Research Center*1,
the Applied Chemical Research Center, and the New-STEP
Research Center.
Costs for R&D/Ratio of R&D Costs to Sales(Billion yen)

(%)

8.0

4

3.6

7.5

3.3

7.0
6.5
6.0

3.0
2.6

6.5

2.6
5.9

5.7
5.4

5.5

3

5.6
2

5.0
4.5
4.0

2019

2020

2021

Costs for R&D (left axis)

2022

2023 Forecast(fiscal year)

1

Ratio of R&D Costs to Sales (right axis)*1 Viewing R&D for the Glass business as a branch of chemistry, we will further
integrate core technologies of glass and chemistry, while continuing to work on
the R&D at Fundamental Chemical Research Center (Matsusaka).
*2 After having a clear vision for the development of a technology to produce a
6-inch single crystal using a solution method capable of elongating a crystal
while maintaining its high quality, in FY2022, we started to work on the program
to develop an 8-inch single crystal after this program was adopted as one of theGreen Innovation Fund Projects/Building the Next Generation Digital Infrastructure, open public programs by NEDO.

Electronic Materials Field
Liquid-Repellent Bank Material (CEBIJARTM Series)
Toward the mass production of luminescent layers fornext-generation displays, which need to be produced at
low cost and enlarged urgently, an ink-jet method is coming under the spotlight as a new manufacturing technology. For the bank material to prevent interelement color mixture, it needs to have a liquid-repellent property
against ink (illuminant solution) and a property resistantto a UV-ozone treatment, and we are advancing the development of liquid-repellent bank materials with these needed properties by adopting fluorine compounds originallydeveloped by our Company.

20 Central Glass Integrated Report 2023

Resistance to UV-ozone treatment (behavior of contact angles(liquid-repellent property) at each manufacturing process)Liquid-repellent bank material(black part)

Newly developed
products
Existing products
BeforeUV-ozonetreatment

After
UV-ozonetreatment

After
additional
heating

Electronic Materials

Energy Materials

Carbon neutrality and the reduction ofenvironmental impact
Low GWP dry etching
Next-generation power semiconductormaterials SiC/Ga2O3PFAS free materials
Initiatives for the manufacturing process ofnext-generation semiconductors
High-performance wet/dry processing
technology
Photosensitive patterning material
Pattern collapse prevention agent(Pattern KeeperTM)
Initiatives for the manufacturing processof next-generation displays
Liquid-repellent bank material

Stable supply of electrolytes for LIBs
Increase in the production of raw material LiPF6 andimprovement of its manufacturing method
Establishment of a global production system
Development of electrolytes for EV batteries andEfforts to spread them widely
Development of additives compatible with
Si-containing negative electrodes/high-Ni-containing
positive electrodes
Acceleration of a design/synthesis/evaluation cycle
Sustainability
Establishment of manufacturing methods for LiPF6
and electrolytes using recyclable raw materials
Development of additives and electrolytes for SIBs
●

●

●

●

●

●

R&D
・Proactive investment in R&D
・Effective utilization of core technologies
・Open innovation

●

●

●

●

●

・Further development offunctional materials
・Challenge to uncultivated
areas

●

●

LIB: Lithium-ion battery
SIB: Sodium-ion battery

GWP: Global Warming Potential
PFAS: Per- and PolyfluoroAlkyl
Substances

Glass/Others
SDGs: Sustainable Development Goals

Automated driving society utilizing core technologies, sustainable society, and R&D aimed to respond to SDGs●●●

Automotive glass
Technology to support an ADAS, windshields for HUD,
glass compatible with HIC, UV/heat-ray shielding glass,and environmentally friendly materials
Architectural Glass
Architectural high-functionality mirrors (anti-fog mirrors andanti-fouling mirrors), and high-performance Low-E glass
High-functionality glass fiber

Low GWP Etching Gas (CEG® 34E)
We are requested by leading semiconductor manufacturers in the world to develop environment-friendly low-GWP
etching materials. We are collaborating with leading semiconductor manufacturers to launch etching materials withextremely low GWP. In the future, we will provide next-generation etching materials that are conscious of the environment and safety as well as being highly efficient.

●

●

●

●

●

●

ADAS: Advanced Driver Assist System

Next-generation non-PFAS blowing
HUD: Head-Up Display
agents/solvents
HIC: Head Injury Criterion
High-functionality new fluorinecontaining resin
Environment-adaptive coated fertilizers (reduced plastic and plastic free)
Regenerative medicine materials/discovery of drugs
Efficient R&D utilizing data science
Fusion of chemistry and core technologies for glass

Design guidelines for newly
developed materials

15,00010,0005,000
0Environmental impact (low GWP)

of
0th als,00 teri-10 maone ent
an currs th inLes P100GW

In the business department research, directing our efforts to the fields of electronic materials and energy materials, we have proactively worked on the promotion ofcollaborative research with major clients in Japan andoverseas, and the reinforcement of the cooperation withresearch sites overseas, as well as on capital investment inequipment for analysis and evaluation, etc. with the aim ofstrengthening functional materials business. In February
2020, we established the Electronic Materials ResearchCenter Taiwan (ERCT) at the National Cheng Kung University (Tainan City), as an R&D base for preceding processmaterials of leading-edge semiconductors and materials
for next-generation displays, having been gathering information and developing new materials. Additionally, to efficiently advance R&D related to energy materials, we plan
to build the Functional Materials Laboratory (provisionalname) scheduled to be completed in the Applied Chemical
Research Center in FY2024.
We view the following as our important targets, that is, thedevelopment of fine and complicated next-generation processing technology for semiconductor-processing materials,
and the manufacturing study on SiC*2 serving as substratematerial for the next-generation power semiconductors.
In the development of electrolytes for lithium ion batteries (LIBs), we are considering the utilization of recyclable
raw materials, in addition to developing original high-performance additives and constructing a global production
system. In addition, we distribute our research resources toextend the range their application to other materials otherthan electrolytes as well as to the development of next-generation secondary batteries other than LIBs.
In the corporate research, by proactively utilizing open
innovation with universities, etc., we are trying to expand
our business portfolio to areas we have not cultivated yet.
In particular, such areas include the life science field forthe development of regenerative medicine materials andthe discovery of drugs for an abnormal protein aggregation
disorder, and the energy-saving and carbon-neutral field toutilize microparticulation technology cultivated in our Glassbusiness. For the drug discovery research, we established
Shonan Research Center in Shonan Health Innovation Parkin May 2021, and began exploratory research. In addition,
we have launched a research group in charge of data sciencein the New-STEP Research Center, working on initiatives
contributing to the efficient R&D of functional materials.

GWP100Special Feature｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜Etching
performance

SafetyPoor
ExcellentCurrent
materials(HFC-23 and HFC-32)

Developed
materials

Cost

Handling ability(CEG® 34E)

Current materials
Newly developed materials

Energy Materials Field
Stable Supply of LIB Electrolytes
With an increase in the ratio of EVs and the wide spreadof batteries for stationary use, the production of LIBs is
expected to expand. Amid this phase of rapid growth, tostably and globally supply electrolytes, a key material for
LIBs, we are working on the production boost of LiPF6 by ahighly efficient manufacturing method (joint venture withanother company) and the establishment of a further improved manufacturing method using recyclable raw materials. Through our electrolyte business, we will contributeto the realization of carbon neutrality.

by accelerating the development of additives suitable forhigh-capacity Si-containing negative electrodes essential
for EVs as well as for high-Ni-containing positive electrodes
aimed at avoiding the use of Co. By utilizing the technology
cultivated through the development of additives for LIBs,
we will also direct our efforts to the development of additives and electrolytes for sodium ion batteries (SIBs), forwhich material resources are abundant.
Additives Development Scheme

Target performance of additives
Capacity

Performance
evaluation
Accelerate
development byspeeding up the cycle
leveraging support fromcomputational science

Synthesis

Development of Electrolytes for EV Batteries
We have succeeded in developing our original additives that
can improve battery performance (capacity, resistance andlife), developing our electrolyte business by combining withthe manufacturing method for competitive LiPF6. In the
future, we will strive to improve the performance of LIBs

Molecular
designSafetyLife
Poor

Performance
forecast

Excellent
Cost

Computational
science

Resistance

Current
Development target

Formulate optimum structure

Central Glass Integrated Report 2023

21

Special Feature

2

Special Feature

Central Glass Products Co., Ltd.

Inheriting the Glass Business Department of Central Glass, We Made a Fresh Start in April 2023.

Glass Field
Applying our technologies for glass fabricating, opticalcontrol, surface control, etc. that we have cultivated over along period of time as our core technologies, we are working on the development of new products for the automotive
field and the architecture field.

High-functionality Mirror
Boasting a top market share in the field of residential
mirrors, we aim to launch anti-fouling and anti-fogging
mirrors for bathroom vanities by leveraging our high surface-processing technology.

Automotive Window Glass
For future autonomous driving cars, since it is necessary
to pursue a higher level of safety and convenience, we will
actively pursue the development of special windshields fornext-generation vehicles equipped with a head-up display(HUD) and glass compatible with an advanced driver assist
system (ADAS).

Difference in performance between a normal mirror and ananti-fouling/fogging mirror
Normal mirror

Anti-fouling/fogging mirror

Left for 10
minutes
under theenvironment inwhich fogging
easily occurs

An HUD used for a next-generation vehicle(for illustrative purposes)

Occurrenceof fogging

No
fogging(less than
one minute)Superposition
display

3

Business Restructuring: Introduction to Our New Company

Destination

The mirror
stained with aneyeliner

Large-areadisplay

60 56 km/h

Minoru Irisawa
President and Representative Director

Core
Business

HardlyremovedEasilyremovedManagement
PolicyEnvironment Adaptive Coated Fertilizer
Since plastic used as a coating material hardly decompose
in a natural setting, we are working on the developmentof environment-friendly coating materials. We are also advancing the development of plastic-free products by using
sustainable plastic-replacing materials, in addition to preparing for the launching of products with less plastic in
which resin amount is reduced while slow-release feature
is maintained.

Opening Up the Future of Glass Evolving in Our Lives
・Architectural glass (eco-glass, disaster-prevention-safety-glass, tempered glass, mirrors, etc.)
・Automotive glass (windshields, door glass, rear windows, sunroof windows, etc.)

1. Continue to take on a challenge for the future instead of sticking to a traditional model.
2. Comply with laws and regulations based on the Corporate Philosophy of the Central Glass Group.
3. Take on the challenge of realizing a sustainable society friendly to the global environment.
4. Actively work on the creation of a workplace environment that allows employees to work with a peace of mind.

After gently
wiping up thestain

Highdefinition
display

Central Glass Products Co., Ltd. started to take a step in a new direction in FY2023.
Central Glass Group had worked on the structural improvement of our Glass business,but we made it independent from Central Glass Co., Ltd. this time in order to further
enhance its business viability, and our Glass business has been operated by Central Glass
Products. After obtaining a corporate status, we have become even more determined todevelop a truly an independent business unit by carrying out our social responsibilities
for stakeholders.
Until now, our business models for architectural glass and automotive glass have differed greatly, but we expect to see further convergence in the future, and create various
synergies in both businesses through integrated management.
Our business operation has been smooth until now since its commencement. We willcontinue to place top priority on the continuation of the smooth business operation andthe anchoring of the effects produced in the structural improvement that had been carried out until last year.
All employees of our company as well as those of the subsidiaries and the affiliates
forming the Central Glass Group will make efforts to anticipate the possibility of mediumto long-term change of the social environment ahead of others with “Challenge” as ourmotto, with the aim of providing products, services and qualities meeting our customers’
needs in a broad range.

  We enhance the personnel system for developing human resources, and aim to establish a working environment thatallows individual workers to give full play to their abilities and talents.
Promoting Work-Life Balance

Promotion of Diversity

Toward Creating Vibrant Company

We have built systems surpassing thosemandated by law to support work-lifebalance of people raising children andcaring for family members.

Respecting the diversity of individuals,
we are working to enable employees todemonstrate their abilities in accordancewith their individual styles.

By creating a corporate culture in which everyone can play active roles, we aim to become avibrant company in which each employee canfeel his or her own personal growth and has adesire to continue working for years with us.

Plastic reduction
From 2000
Cera-coat® R

From 2025
Plastic-reduced

Under development

Central Glass Products Co., Ltd.

Plastic-free

・Biomass-derived plastic ・Biomass-derived plastic ・Biomass material・High nitrogen content“Non-Plastic”
・High disintegration(runoff prevention)

Architectural glass-related

Organizational
Structure

Response to PFAS Regulations

Sales

Manufacturing

Central Glass Sales Co., Ltd.

Central Glass Plant Services Co., Ltd.

Central Glass Engineering Co., Ltd.

22 Central Glass Integrated Report 2023

Net Sales

54.0

billion yen

Automotive glass-related
Sales

As the European Chemicals Agency (ECHA) published the
PFAS restriction proposal in February 2023, our Company
will advance necessary measures in a responsible manner as a fluorine chemical manufacturer. In addition tosetting an in-house cross-sectional project team to make

Sales Forecast for FY2023

Glass business-related affiliates

fair public comments on existing products, we will proceed
urgently with shifting to chemical compounds and materials free from PFAS and the reviewing of research subjects
related to PFAS.

Central Saint-Gobain Co., Ltd.

Manufacturing
Mie Glass Industry Co., Ltd.
Japan Tempered & Laminated Glass Co., Ltd.
Central Glass Module Co., Ltd.

■ Automotive glass

29.0 billion yen■ Architectural glass

25.0 billion yen

Central Glass Integrated Report 2023

23

｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜Business Outline

Glass Business

Glass Fiber Business[Central Glass Products Co., Ltd.][Central Glass Fiber Co., Ltd.]■ Flagship Products and Core Business・	Architectural glass (eco-glass, disaster-prevention-safety-glass,tempered glass, mirrors, etc.)
・	Automotive glass (windshields, door glass, rear windows,
sunroof windows, etc.)■ Flagship Products and Core BusinessContinuous glass fiber products, and glass wool products

Message from the Head of Business Site
Central Glass Products has worked on the operation of the Glass business since FY2023, holding other glass-related affiliates under its umbrella.
We will boost the accuracy of financial condition analysis on a Glass business-consolidation basis, and aim to achieve our financial goal for the
improvement of profit ratio and the creation of cash. In addition, we will enhance the cohesiveness of the organizations within the Group and thedevelopment of human resources, while maintaining a high level of quality and environmental management, and actively advance the improvementof our working environment with the aim of enhancing the sustainability of our business.

Central Glass Fiber Co., Ltd. undertaking the Glass Fiber business is operating the two departments, one for continuous glass fiber business, and the other one for glass wool business. Supported by customers from various industries,
we have been able to continue stable business operation for over 50 years by providing high value-added products
meeting individual needs. We have not only worked on measures for energy saving such as by improving productivities,
but also promoted measures for fuel conversion toward CO2 reduction, and will aim to continue business operation
contributing to society by aiming for the further advancement of manufacturing technology for the future, as well as bydeveloping sustainable business activities such as the promotion of recycling.

Minoru Irisawa Director, Senior Executive Managing Officer(Holding the additional post of President and Representative Director at Central Glass Products Co., Ltd.)

Toshihiro Fujita General Manager, Glass Fiber Business Administration Department(Holding the additional post of President and Representative Director at Central Glass Fiber Co., Ltd.)SWOT Analysis

Strengths

Weaknesses (and countermeasures for them)Integrated production from flat glass manufacturing to automotive and architectural glass
products• Developing new products and technologies based on a long-standing credibility with clients• Capable of providing value-added products making a high environmental contribution

•

•

■

Threats (and countermeasures for them)

Expanding demand for high value-added glass contributing to energy saving and the realizationof carbon neutrality (eco-glass, heat-shield glass, UV/IR-cut glass, thin flat glass, etc.)• Responding to CASE in the Automotive glass business(automotive technology trends:
connected, electric vehicles, etc.)•

 usiness Policy of Medium-Term
B
Management Plan

・ Promote sales strategies emphasizing profitability
・ Develop and sell products demanded by the market andenvironmental contribution products (eco-glass)・ Provide services that can earn high customer satisfaction(quality, prices and delivery time)・ Promote cash flow-oriented business operation
・ Streamline the plan to produce glass furnaces by optimizing
the entire plan・ Reinforce the management of quality, environment andsupply chain
・ Promote cost-cutting through business improvement utilizing
information technology (IT) and digital transformation (DX)■

Necessity of reducing GHG emissions and making a major capital
investment in the replacement of facilities because of being anequipment industry

Opportunities•

Business Strategy for FY2023

We find the market environment surrounding our company ina tough situation due to the delayed recovery of automotive
shipments affected by the semiconductor shortage that has
been continuing since the last fiscal year, as well as by theescalation of energy costs and the inflation occurring with thebackground of the global political instability including the situation in Ukraine. Under these circumstances, in FY2023, we
will advance our business activities, giving the highest priority
to the smooth operation of the business that has just started
and the anchoring of the effects produced in the structural
improvement that had been carried out until last year.
Also, we will make each department implement the re-examination and review of the existing issues for achieving its
24 Central Glass Integrated Report 2023

SWOT Analysis

Reduction of GHG massively generated in the glass manufacturing process
Escalation of energy procurement costs• Decrease in automotive shipments and housing starts due todomestic population decrease•financial goal in the Medium-Term Management Plan andidentify new issues, encouraging all employees involved in
the Glass business to have a common recognition that theseshould be worked on by all of them. In addition, we will aim
to achieve this fiscal year’s targets with emphasis on thestrengthening of partnership between departments.
Regarding capital investments, we will work to make effective investment decisions by increasing the accuracy of estimating the amount of cash generated by the capital investments with the purpose of reducing fixed costs for business.
We will also systematically invest in employees by promoting human resource education and by improving their working
environment for the future.
■

ESG-Related Initiatives

In 2022, the Glass business achieved the 2030 GHG emissions reduction target established by the Central Glass Group.
We also began switching part of the eclectic power purchasedfrom electric power providers to CO2-free electricity in April
2023, continuing to promote the reduction of GHG emissions.

■

Automotive glass

Weaknesses (and countermeasures for them)

Experience of delivering products to many key industries forautomobiles, housing, electronic materials, infrastructure, etc.
• Technologies and product qualities cultivated over a long period oftime as a glass fiber manufacturer•

Opportunities

Threats (and countermeasures for them)•

Diversification of customer needs due to various factors including the globalization
Expansion of the highly-functional resin market in the electronics parts sector• Increased demand for the lightening of automobiles and incombustible materials intheir production following the trend of vehicle electrification• Enhancement of sound insulation performance of automotive glass with the
purpose of responding to tightened pass-by noise regulations

•

•

•

 usiness Policy of Medium-Term
B
Management Plan

Continuous Glass Fiber Business・ Cope with the complicated and rigorous business environment
with various issues such as escalating raw material and fuelcosts and geopolitical risks
・ Strengthen the system to supply electronic materials and key
products for the automotive field and develop new products

Energy-intensive business structure
Business scale smaller compared to that of global leading
manufacturers• Costs for regularly updating facilities including glass furnaces•

Decrease in demand due to the stagnation of global economy
Downsizing of the Japanese economy and fading domestic demand due
to factors including depopulation• Destabilization of the supply chain associated with changes in the world situation• Escalating costs for raw materials and fuels and physical distribution

The glass wool business is expecting to see demand increasein the automotive soundproof materials following the tighteningof pass-by noise regulations. With this background, while focusing on the maintenance and expansion of this market share, wewill direct our efforts to the development of new products in response to the spread of EVs as well as to the establishment oftechnology to produce recyclable products, with the aim of establishing a stable business operation system for the future.
■

Glass Wool Business・ Continue to maintain the reliable system to deliver automotive
products whose market is expected to recover from the stagnation during the COVID-19 pandemic
・ Build a production system that can respond to escalating raw
material and fuel costs and a labor shortage
・ Work on the development of products with an eye on the spreadof EVs, and the establishment of technologies that can contribute to the creation of a recycling-oriented society■

Eco-GlassStrengths•

Business Strategy for FY2023

It is expected that the continuous glass fiber business will have tocontinue to cope with the severe business environment in which
concern is growing over the escalation of raw material and fuelcosts and geopolitical risks. Amid such circumstance, however,
we will respond to market needs by strengthening the system tosupply electronic materials and key products for the automotive
field and developing new products.

ESG-Related Initiatives

In addition to working on the enhancement of yield of glass fiber
products and the promotion of energy saving, we have been advancing the shifting of fuels used in glass furnaces from heavy oil
to LNG and LPG. We also work on the improvement of combustion
efficiency (energy efficiency) by introducing oxygen combustionand electrodissolution as well as on the reduction of the amountof emission gas. We will proactively promote the 3Rs (Recycle,
Reuse and Reduce), while advancing the introduction of melting
technology contributing to the reduction of CO2 emissions andthe lowering of emission gas amount, and the improvement ofenergy efficiency in a phased manner.

Milled Fiber

Rubber Coated Glass Cord
Central Glass Integrated Report 2023

25

｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜Applied Chemicals
Business

Medi-Chemicals
Business■ Flagship Products and Core Business	HFO products (blowing agents and solvents), fluorinecontaining functional materials, and active ingredients for
agrochemicals■ Flagship Products and Core Business	Chemicals for active pharmaceutical ingredients including
those for inhalation anesthesia, intermediates, andpharmaceuticals

Message from the Head of Business Site

Message from the Head of Business Site

The Applied Chemicals Sales Department provides various products including blowing agents, solvents, functional materials andactive ingredients for agrochemicals to a wide range of fields by leveraging its core (fluorine) technology. We produce earth-friendly
blowing agents and solvents with an extremely low global warming potential (GWP) that do not harm the ozone layer. We will continue the manufacture and sales of products containing fluorine while appropriately responding to the regulations on the use of
per- and polyfluoroalkyl substances (PFAS) proposed by the European Union recently. In the medium- and long-term, we will direct
our efforts to the development of highly original products free from PFAS and fluorine, based on our core technology, and provide
safe and environment-friendly products with the aim of promoting business expansion.

We play a role in the development, research, manufacture and supply of pharmaceuticals necessary for protecting
the lives and health of people, striving every day to contribute to the realization of truly prosperous lives of people.
For example, the active pharmaceutical ingredient for inhalation anesthesia produced by leveraging our fluorination
technology is one of the products achieving the Corporate Philosophy of the Central Glass Group, which is used inoperation sites in Japan and overseas. We are proud of having always been providing the stable supply of the products
ever since it was released in the 1990s.
Takeyasu Kawano General Manger of Medi-Chemicals Sales Department

Masatomi Kanai General Manager of Applied Chemicals Sales Department

SWOT Analysis

Strengths

Weaknesses (and countermeasures for them)

Dependence on China for fluorite, a major material (securing of
stable domestic stock and expanding the use of fluorite notproduced in China)•

Production system that allows integrated production from major raw materials• Quality assurance support backed up by highly developed analysis technology• Manufacturing quality management system that continues to comply with thecriteria required at FDA inspections, etc.
• Experience of conducting joint development with many pharmaceutical companies•

Opportunities

Threats (and countermeasures for them)Opportunities

Threats (and countermeasures for them)

Expanding demand for Japanese products due to the supply chain
disruption experienced during the COVID-19 pandemic, theincrease in geopolitical risks, the U.S.-China trade friction, etc.
• Expanding demand for products with low GWP as countermeasuresagainst global warming•

Strengths
Capable of implementing integrated manufacturing (fluorite →anhydrous hydrofluoric acid → fluorinated chemical products) in ourdomestic factory• Provision of hydrofluoroolefin (HFO) products with an extremely low
GWP
•

•

■

 usiness Policy of Medium-Term
B
Management Plan

・ Strengthen partnerships with Honeywell in the U.S. for the
HFO-1233zd (E) business and maximize our sales force
・ Acquire alternative demands for HFCs, HFEs and brominated solvents of CELEFIN 1233Z
・ Accelerate the development of a new solvent that complements the performance of CELEFIN 1233Z・ Ensure stable supply of agrichemical-related products andfunctional material products by the collaboration in manufacturing work between domestic factories and joint subsidiaries in China.
■

SWOT Analysis

Business Strategy for FY2023

Affected by the global situation, we find ourselves in the extremely severe business environment with raw material andfuel prices escalating. However, we will respond to market
needs by cutting costs through increasing production efficiency as well as developing new products. To promote theblowing agents business, our core business, we will further
deepen the partnership on HFO-1233zd (E) with Honeywellin the U.S. The supply chain disruption in recent years has
led domestic users to re-evaluate the value of made-in-Japan

26 Central Glass Integrated Report 2023

Weaknesses (and countermeasures for them)•

Negative image of fluorinated chemical products developed after
the publication of the PFAS restriction proposal by ECHA (making
efforts for the appropriate application of the PFAS restriction byrequesting affiliated industry organizations and individualcompanies to submit their opinions, and accelerating the researchand development of PFAS-free products)

products, following which we will make sure to keep enoughstock of products at our factories and enhance our service todirectly deliver made-in-Japan HFO-1233zd (E) to domestic
users. Competitive fluorinated chemical product manufacturers announced the discontinuation of the production of HFC
solvents in August 2023 and that of HFE solvent in December
2025. In response, our solvent business will make vigorous
efforts to acquire alternative demands. In response to thetightening of standard control concentration of brominatedsolvent starting in April 2024, there is a growing demand foralternative products, following which we will contribute to theimprovement of work environment of cleaning sites by providing highly safe CELEFIN 1233Z.
■

ESG-Related Initiatives

By widely providing hydrofluoroolefin (HFO) products with extremely low GWPs, we will contribute to solving world-wide
global warming issues. HFO-1233zd (E) used as blowing
agents has insulating properties that are superior to those of
conventional blowing agents, being expected to exhibit energy-saving effects. CELEFIN 1233Z for a solvent-purpose
is incombustible and achieves a high cleaning performance,
responding to the social need to minimize the risk of fire atwork-sites.

Market expansion due to the aging of society in advanced
countries and increase in medical standards in developing
countries•

 usiness Policy of Medium-Term
B
Management Plan

tion anesthesia that have been supplied since the 1990s increased in FY2022 compared with the previous fiscal year.
We will work on the following as our business strategy for
FY2023.
・ Sales expansion in the existing market and market penetration in countries where our products have never been sold・ Response to various environmental regulations
・ Re-evaluation and enhancement of the supply chain
・ Promotion of product development for new medical
technology•■

Expanding the Sales of Existing Products
While maintaining and expanding the sales in the existing market, we will aim to develop new demands by strengthening thecooperation with our customers, and acquire new customers.
Creating New Business in the Medicine Area
Starting from searching for needs in actual medical settings,
we will solve unsatisfied issues in medical through developing
high-functionality products by utilizing our proprietary technologies, with the aim of contributing to the health of people.
Improving Profitability Through the Collaboration with
Overseas Bases
We will develop new products meeting regionally-specific requirements for products through collaboration among the functions of R&D in Japan, the U.S. and the UK to bring the products to each market with an optimum supply system.
■

Since the existing products are made for specific pharmaceuticals or medical
instruments, it is difficult to develop them for a new use within a short period(introduction of new products to the field of medical materials)• The manufacturing bases exist only in Japan. (enhancement of supply chain)• High development costs and low development success rate in the pharmaceuticals and medical device industry (promotion of open innovation)

Expanding usage of generics and curtailing of medical expenses(rationalization of production and DX)• PFAS restriction (development of non-PFAS-structured products)■

ESG-Related Initiatives

In one case, we shifted the means of transporting raw materials
domestically from truck transport to the one by railway and ship,
and in another case, we realized the collecting and recyclingof waste liquid and waste raw materials through collaboration
among the research, technical and manufacturing departments.
We will continue to direct our efforts to such initiatives.

Business Strategy for FY2023

In recent years, due to increased world-wide competition withgeneric medicine and the influence from the COVID-19 pandemic, the shipment quantity of pharmaceutical products hasremained at a low level. However, there have been signs ofdemand recovery following the relaxation of COVID-19-related
regulations, and the shipment volume and value of the productlines including active pharmaceutical ingredients for inhala-

Containers
Designed forTransporting
Active Pharmaceutical
Ingredientsfor Inhalation
Anesthesia
Central Glass Integrated Report 2023

27

｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜Electronic Materials
Business

Energy Materials
Business■ Flagship Products and Core Business	The manufacture and sales of high purity gas forsemiconductor processes, resist materials, pattern collapse
inhibitors for semiconductor circuit patterns (hereinafterreferred to as Pattern KeeperTM)■ Flagship Products and Core BusinessElectrolytes for Lithium-Ion Batteries

Message from the Head of Business Site

Message from the Head of Business Site

Due to the stagnation of demands for PCs and smartphones resulting from concerns about inflation and economic
recession, in particular, memory-related leading companies have suffered a pro-longed production cutback, withthe shipment volume of products for semiconductors remaining sluggish. On the other hand, from the second halfof FY2023, the market for semiconductors for AI, represented by Chat GPT, is expected to recover and to make aleap forward from 2024. Also, due to a growing environmental demand from semiconductor manufacturers, ourenvironmentally compatible products have come into the spotlight. We will contribute to the achievement of SDGs byproactively developing these products.

In the Paris Agreement adopted in 2015, the participant countries agreed to keep the rise in mean global temperature to well below 2
degrees, and preferably limit the increase to 1.5 degrees, thus, global efforts have been made to significantly reduce the greenhousegas (GHG) emissions, especially those of CO2 gas, that are the main cause of climate change. In the midst of that trend, the motor vehicle industry is accelerating a shift from gasoline-fueled vehicles to electric vehicles world-wide, and it is estimated that the sales shareof electric vehicles exceeded 10% of the world vehicle market. Demand for electric vehicles is expected to continue to greatly increase.
Utilizing our fluorination technology, we manufacture and sell functional electrolytes for lithium-ion batteries used in electric vehicles, and we have earned a high reputation from lithium-ion battery manufacturers in Japan and overseas.

Tadayuki Kawashima General Manager of Electronic Materials Sales Department

SWOT Analysis

Strengths

Weaknesses (and countermeasures for them)

R&D-oriented company engaging in semiconductor gas businessand semiconductor chemical solutions business• Integrated manufacturing (fluorite → anhydrous hydrofluoric acid→ fluorinated chemical products) in our domestic mother factory• Early withdrawal from the NF3 business for high GWP products
and shift toward new low GWP gases

There are not enough overseas development bases to respond to
many of our overseas customers. As measures to respond to this,
we are considering the deepening of collaborative research with
imec in Belgium and establishing overseas development bases.

•

Opportunities

Threats (and countermeasures for them)Growing needs for environmental responses such as decarbonization
by semiconductor manufacturers• Accelerating adoption of new structures and materials aimed at
the further densification and power-saving of semiconductors

The market environment is becoming increasingly uncertain due to
U.S.–China decoupling and the Russian invasion of Ukraine.
Countermeasures include the deepening of communication with eachsupply chain and hedging risks by increasing the number of sources.

•■ usiness Policy of Medium-Term
B
Management Plan

・ Promote product commercialization by leveraging channels
with manufacturers of semiconductors and semiconductor
equipment
・ Move ahead on proposals of alternative new materials responding to non-PFAS needs from customers and promote
the development of their supply system・ Address the demand increase following the demand recovery for leading-edge semiconductor factories and the setting up of new factories■

28 Central Glass Integrated Report 2023

SWOT Analysis

Strengths

Weaknesses (and countermeasures for them)

The additives developed by our own effort can keep batteries from deterioratingeven when they are used under severe environmental conditions or for a long
period, proving to have effects of improving their life and heat resistance. At thesame time, the additives can restrain the internal resistance of batteries andcontribute to the improvement of their output and low-temperature characteristics.
• By establishing manufacturing bases for electrolytes in Japan, South Korea, China
and Europe, we have built a global supply system to respond to a wide range ofcustomer needs.
• We also possess a supply chain to stably and inexpensively supply various raw
materials including LiPF6, the primary electrolyte, in Japan and overseas.

•

•

■

ESG-Related Initiatives

Our business concept based on the Corporate Philosophyof “Creating a Better Future Through Monozukuri” includes
leading society in the field of environmental business andmaking a social contribution, as well as creating new features.
In addition to commercializing environmentally compatible
products, toward the widespread of SiC power semiconductors that will contribute to the realization of a decarbonizedsociety, we will accelerate the productization of high-quality
and low-cost single crystal SiC substrates.

■

Threats (and countermeasures for them)

While various efforts have been made to cope with energy issues
and reduce CO2 emissions, demands for electric vehicles andlarge-sized storage batteries have significantly grown every year ina global scale.
• Western countries are showing a trend toward de-Sinicization,
reducing their dependence on China.

•

Major Business Bases in Taiwan

 usiness Policy of Medium-Term
B
Management Plan

・ Positioning the electrolyte business as our core business aiming at
increase in profitability by aggressive investments, we will expand ourmanufacturing bases and improve our raw material procurement capabilities, including supply chain investment
・ Aim to differentiate ourselves from our competitors and promote theenhancement of our technological competitiveness by the research anddevelopment of high-performance additives
・ Through these efforts, we aim to further develop new customers andimprove our global presence in the industry■

The producing/manufacturing areas for various raw materials
including lithium resources, one of the main elements forelectrolytes, are not evenly located, which causes large fluctuationin their supply volume and prices.
• We are promoting measures to mitigate their impacts above
through reducing our dependence on raw material sources in
China, increasing the number of such sources, and concluding
long-term purchase agreements with suppliers, etc.

Opportunities•

Business Strategy for FY2023

We will proactively capture the market for leading-edge semiconductor materials for AI etc., the field with potential for
future expansion, and aim to expand the share of materials
for semiconductors, including memories, etc., which are inan adjustment phase. Furthermore, in addition to aiming at
the commercialization of environmentally compatible products, such as non-PFAS products and low-GWP ones, we will
actively take on the challenge of developing new products
such as materials for the next-generation display capable oflowering power consumption and the next-generation materials for power semiconductors.

Keiji Sato General Manager of Energy Materials Sales Department

Business Strategy for FY2023

While continuing sales to the existing customers in Japan and overseas, wewill enhance our research and development capability to examine new additives and electrolytes with a new composition meeting customers’ needsin order to acquire new customers.
Regarding manufacturing, directing our efforts to address the U.S.
market, we will consider locally manufacturing our products in North
America, where our Group has no manufacturing bases. In addition,

With a number of competitors manufacturing electrolytes existing in Asia including
China, it is expected that cost-cutting and price competition will continue.
• Since there is a growing trend of manufacturing electrolytes locally inEurope and the U.S., not limited to manufacturing them domestically, it
has become necessary to localize the manufacture of electrolytes.
• We will continue to closely observe the trend of customers’ policies, subsidy
policies in the U.S. and European countries, and, in particular, the trend of theInflation Reduction Act (IRA) of the U.S.

regarding the procurement of raw materials, in the midst of the trend
in which international efforts are being made for achieving SDGs anddependence on China is being reduced, we will develop our business to
respond to global customer needs at an accelerating pace for the further
enhancement and diversification of our supply chain.
At the same time, we will advance deliberation on our response to thebattery material recycling business that other manufacturers started to beworked on in recent years, as well as on the business on next-generation
secondary battery materials for sodium ion batteries, etc.
■

ESG-Related Initiatives

Since electric vehicles powered by lithium-ion batteries do not emit CO2
when activated, they contribute significantly to the prevention of global
warming. Electrolytes are one of the major components of lithium-ion
batteries, and it can be said those products themselves make a contribution to the reduction of CO2 emissions. In addition, regarding the
manufacturing of LiPF6, the major raw material of electrolytes, our affiliate companies are working on its manufacture and procurement at low
cost in an energy-efficient manner by using our unique technology. Thus,
we will continue striving to advance Monozukuri in an environmentallyfriendly manner.
Central Glass Integrated Report 2023

29

｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜Fertilizers Business

Sustainability Management[Central Chemical Co., Ltd.]■ Flagship Products and Core Business	Coated fertilizer (Cera-coatR), NPK compound fertilizer, NK
compound fertilizer, ammonium chloride, and mixed fertilizer

Fundamental Concept of Sustainability

Message from the Head of Business Site
Last year, the fertilizer industry was in its crucial stage severely affected by the supply stagnation of raw materials andtheir rapid price rise resulting from China’s export control and the Russian invasion of Ukraine. Under such circumstances, Central Chemical Co., Ltd. has striven to provide a stable supply of fertilizers as one of the few manufacturersof high-analysis ammonium chloride compound fertilizers. In recent years, environmental issues including the issueof marine plastic litter have been drawing public attention, in which we have worked on the development of environment-friendly products tenaciously, such as environment adaptive controlled-release fertilizers and chemical fertilizers
combined with untapped natural resources including livestock manure combustion ash and woody combustion ash.
Naokatsu Sakata General Manager of Agri Business Administration Department(Holding the additional post of President and Representative Director at Central Chemical Co., Ltd.)SWOT Analysis■

Central Glass Co., Ltd. aims to improve enterprise value from a long-range viewpoint
through business activities while taking the global environment, society
and economy into consideration.

Strengths

Weaknesses (and countermeasures for them)

Since we have the product lines of controlled-release coated fertilizers
that can control the dissolution of fertilizer components, by combining
them with chemical fertilizers, we can provide a base fertilizer that goes
well with regional particular crop growth and effective for only once
single application, which can save the effort of additional fertilization.

Not having a full lineup of products combined with chemicallycomposed controlled-release fertilizer. Expanding the number of lineup
of products by combining untapped natural resources.

1. Structure to Address Sustainability
As a means of promoting our Group’s efforts to address sustainability, we have established the Sustainability Committee with the purpose of analyzing and evaluating measures and activities in a cross-sectoral manner, making areport and a recommendation to the Board of Directors as necessary, and further strengthening our efforts.
We will continue to strengthen and accelerate such efforts by proactively making recommendations on a strategy
for business activities for the solution of environmental and social issues from the perspective of sustainability.

Opportunities

Threats (and countermeasures for them)

We use vegetable oil for about a half of the coating material of a coatedfertilizer, and have received biomass certification for all coatedfertilizers.

From 2030, it will become necessary to make a shift to agriculture that
does not rely on coated fertilizer using plastic. Accelerating thedevelopment of environment adaptive controlled-release fertilizer.

 usiness Policy of Medium-Term
B
Management Plan

tion of the outflow of coating shells to a river. On the other hand,regarding Cera-coat compound fertilizers, since the suppliers ofammonium chloride, the raw material of the fertilizers, exist onlyin China, we suffered a decrease in their sales directly affectedby the export control.
The domestic agricultural environment from FY2023 is expected to be an even more severe one due to a decline in thenumber of farmers and graying population of the farmers. We aregoing to carry out our business activities with focus on the salesof Cera-coatR, a controlled-release coated fertilizer, that can contribute to saving agricultural labor. Cera-coatR is a product thatuses vegetable oil for a half of its coating material, contributing
to the realization of carbon neutrality. In addition, we will work on
the development of Cera-coatRS, a coated fertilizer with thinned
coating, to address the issue of marine plastic litter with an eye
toward its commercialization in 2024. Moreover, we are advancing the development of environment adaptive controlled-releasefertilizers, and making our utmost efforts to shift from Cera-coatRat an early stage. Besides these, we will proactively promote thedevelopment and sales of chemical fertilizers utilizing domestic
untapped natural resources in order to contribute to solving issues concerning the environment and food.

・ Develop coated fertilizers with thinned coating (Cera-coatRS)
to reduce the discharge quantity of plastic. Aim to commercialize those coated fertilizers in 2024 after cultivation tests using
wet-field rice・ Set up a development team utilizing domestic untapped natural resources in order to respond to Strategy for Sustainable
Food Systems MIDORI. Accelerate the launch of resource-recycling fertilizers such as by utilizing woody combustion ash andexpanding the product line of chemical fertilizers combinedwith chicken manure combustion ash
・ Presently working on the development of environment adaptive
controlled-release fertilizers by utilizing the existing facility to
manufacture coated fertilizers and the dissolution adjustment
technology. Work on early replacement of existing products(Cera-coatR)■

In accordance with the Basic Philosophy of “Creating a Better Future Through Monozukuri,” the Central
Glass Group has made efforts to solve environmental and social issues through the spirit of Monozukuri, anddeveloped various businesses with the aim of contributing to the establishment of a truly prosperous society.
Believing that this Basic Philosophy is the very essence of what sustainability means, we will continue totackle environmental and social issues more seriously than before, and take on challenges toward the realization of a sustainable society as an R&D-oriented company.

Business Strategy for FY2023

In FY2022, affected by geopolitical factors such as China’s fertilizer export control and the Russian invasion of Ukraine, fertilizers prices soared to the point that the government had to takeassistance measures. We found ourselves in the tough environment in which the reduction of chemical fertilizers was taken
into action on the condition of assistance to farmers from thegovernment. However, we were able to achieve a performancein the sale of Cera-coatR as high as that of the previous year bycarrying out our business activities while proposing the preven30 Central Glass Integrated Report 2023■

ESG-Related Initiatives

We have received biomass certification for Cera-coatR, our flagship product, and every time when a fertilizer bag is updated, we
describe the ratio of plant oil used as a coating material.
We are also reducing our environmental impact by switchinglogistics from trucks to sea freight.

Time of Establishment

Main Purposes

Composition

Meetings

November 2021
(1) Get overall grasp of activities to promotesustainability by the Group(2) Comprehensively analyze and examine efforts
for sustainability(3) Make recommendations to the management
toward solving social issues as necessary
Chairperson: Executive in charge of the Corporate
Administration Department
Vice-Chairperson: Executive in charge of theEnvironment and Safety
Department
Committee Members: Designated responsible
persons of each department
Secretariat: Corporate Administration Department
and Environment and Safety
Department
Held as necessary(FY2021: twice, FY2022: three times)

Board of Directors

Supervision/
Directions

Report/Recommendations

Sustainability Committee

2. Promotion of Sustainability Management
Considering the business environment surrounding our Group, based on the concept of sustainability, we will create
economic and social value by identifying materiality that reflects our management philosophy, the Medium-Term
Management Plan, expectations from our stakeholders, etc. as well as by working on the solution of these issues
through business activities. As a means of promoting our efforts to address sustainability, we will set medium- tolong-term initiatives and targets (KPIs), go ahead with them while following the PDCA cycle, and ensure their progress under the supervision of the Board of Directors.
Central Glass Integrated Report 2023

31

｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜Corporate GovernanceTo realize sustainable growth and increase enterprise value, we will work on the further improvement and enhancement ofour corporate governance to increase the transparency and fairness of our management.

Corporate Governance
The Central Glass Group is continually increasing thetransparency and fairness of our overall management, andstrives to establish an efficient and rational organizational
structure that can swiftly respond to changes in the business environment in order to further enhance our enterprise value and expand our revenue. This is our fundamental concept of corporate governance.
Based on the concept, Central Glass position our Boardof Directors and Board of Corporate Auditors as the foundation of our corporate governance. In addition, we haveadopted an executive officer system. By separating decision-making regarding important business matters, the supervision of business execution, and the actual execution●of business, we have slimmed down the Board of Directors
to make management more efficient and prompter.
We have, in addition to an assigned Accounting Auditorin accordance with the Companies Act, an Audit Department for the purpose of internal auditing, which conducts
audits of the full range of activities of Central Glass Co.,
Ltd. and our affiliates, and reports its findings to the Representative Director and Corporate Auditors.
The Corporate Auditors, the Accounting Auditor, and Audit Department staff exchange information and opinions,ensure coordination, and share problems to enhance anddrive the efficiency of the auditing process.

Schematic Diagram of Corporate Structure

General Meeting of Shareholders
Appointment/Removal
Audit/
Supervision

Board of Directors
Nine Directors(including three Outside Directors)(decision-making/supervision
for management)

Appointment/Removal/Supervision

Consult

Nomination/
Remuneration Committee

Board of Corporate Auditors
Five Corporate Auditors(including three Outside
Corporate Auditors)

ReportAppointment/
RemovalAppointment/Removal

ReportReappointment

Accounting
Auditor
Coordinate

Audit/Supervision
Coordinate

Discussion/
Report[Business Execution
Function]
President & CEO
Executive
Managing Officers
Management Committee(deliberate/report important issues)●

Environment and Safety Promotion
Committee●

Anti-Monopoly Law Observance Committee●

Group Quality Compliance Committee●

Security Trade Control Committee●

Financial Reporting Risk Assessment
Committee●

Compliance Promotion Committee●

Sustainability Committee

Executive Officers
Departments andGroup Companies

Audit

Audit
Department

Accounting
Audit

Overall Corporate Governance Structure●

Position
Classification

Board of Directors
As a rule, the Board of Directors meets once a month, or
when necessary, to deliberate and resolve legal and important managerial issues in line with the regulations covering the Board of Directors, and supervises the executionof business by the Directors and Executive Officers including the President.
Outside Corporate Auditors and Outside Directors, who
retain independence with no potential for a conflict ofinterest with ordinary shareholders, ensure fair decision
making within the Board of Directors and take on the roleof rejecting any arbitrary decisions.
Board of Corporate Auditors
As a rule, the Board of Corporate Auditors meets once amonth, or when necessary, to deliberate and resolve important auditing issues. Corporate Auditors also share
information and frequently exchange opinions with eachother. In addition, they meet periodically with the Representative Director to discuss important matters of auditing.
The Corporate Auditors attend important meetings suchas those of the Board of Directors, and audit the performance of duties that are carried out by the Directors andExecutive Officers, as well as the performance of duties ofeach department and affiliate companies.
Audit Department
The Audit Department, which has been established for the
purpose of managing internal control systems related tointernal audits and financial reporting, conducts operating audits to maintain the effectiveness and efficiency ofgroup-wide operations, conserves resources, and manages compliance with laws and regulations as well as internal rules, in addition to preventing dishonest practices.
Through these audits, the Audit Department strives tosustain appropriate and efficient business operations byproviding counsel and advice about improvements whennecessary.
The Audit Department also convenes regularly and whennecessary to cooperate with the Corporate Auditors, working on the improvement and streamlining of audit work.
Nomination/Remuneration Committee
The Nomination/Remuneration Committee has been established as a voluntary advisory body to the Board of
Directors in order to further enhance the corporate governance structure by strengthening the independence, objectivity, and accountability of the functions of the Boardof Directors relating to matters such as the nomination
and remuneration of Directors and Corporate Auditors. The
committee is composed of at least three members, the majority of whom are Independent Outside Directors, and one
or more of whom are Representative Directors. The chair isselected from among the Outside Directors.

Attendance Status of the Board of Directors in FY2022
Attendance Status

Tadashi Shimizu

100% (19 times/19 times)

Kazuhiko Maeda

100% (19 times/19 times)

Toru Miyauchi

100% (19 times/19 times)

Takashi Kume

100% (19 times/19 times)

Minoru Irisawa

100% (19 times/19 times)

Directors

Yoshitada Makihata

100% (19 times/19 times)

Tetsuo Nishide

100% (19 times/19 times)

Kimi Koinuma

100% (19 times/19 times)

Masaya Kawata

89% (17 times/19 times)

Outside Directors

Takahiro Kondo

100% (3 times/3 times)

Takao Tomioka

100% (19 times/19 times)

Masanori Murata

100% (16 times/16 times)

Masaaki Hori

100% (19 times/19 times)

Hiroyuki Kawai

100% (19 times/19 times)

Toshihide Nishimura

100% (19 times/19 times)

Corporate Auditors

Outside Corporate
Auditors

Name

Takahiro Kondo retired as of June 29, 2022, and Masanori Murata was assigned
to be a Corporate Auditor as of the same date; therefore, the number of Board of
Directors meetings to be attended is differs from those of other Directors and Corporate Auditors.

Cross-Shareholdings
Policy on the Reduction of Cross-Shareholdings
Our Company conducts an examination into the appropriateness of the purpose of cross-shareholdings listed shares aswell as whether benefits and risks resulting from holding themworth the capital cost according to individual issues. We also
consider selling of shares that do not contribute to the medium- to long-term improvident of our Company’s enterprisevalue, promoting the reduction of cross-shareholdings.
However, comprehensively considering non-financial
aspects such as management strategies and measuresagainst risks from the perspective of the maintenance andstrengthening of partnerships, transactional relationships
and business relationship, we plan to hold listed sharesthat will contribute to the medium- to long-term improvement of our Company’s enterprise value.
Based on the above policy, the Board of Directors conducts an examination on cross-shareholdings listed shares,
and will continue to conduct a review regularly.
●

Changes of Cross-shareholdings Listed Shares(Number of individual issues)
35

30(Amount of end-of-period wealth recorded)

29
(32.4
billion yen)
23
(23.3 billion yen)

25

16
(31.2
billion yen)

20

16
(26.3
billion yen)

15

8
(10.4 billion yen)

10

5

0
2018

32 Central Glass Integrated Report 2023

2019

2020

2021

2022

(FY)

Central Glass Integrated Report 2023

33

｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜Remuneration of Executives

By the introduction of the plan, the remuneration of our
Directors came to consist of fixed compensation, performance-based remuneration and performance-based stock
remuneration.
In addition, we have introduced a performance-based
stock remuneration plan similar to this plan for Executive
Officers who have entered into a commission contract with
our Company.

Policy for the Determination of the Remuneration of Executives
At the Board of Directors meeting held on May 11, 2023,
we have adopted the resolution to revise the policy for thedetermination of content of remuneration, etc. that individual Directors are to receive. Before adopting the resolution
at the said Board of Directors, we had consulted the Nomination/Remuneration Committee and received their report.
Regarding the determination of content of monetary remuneration of individual Directors, since the Nomination/
Remuneration Committee entrusted by the Board of Directors determined the content of remuneration, etc. after
deliberating related matters from various angles including consistency with the policy for the determination, theBoard of Directors has decided that the content of individual remuneration is in line with the policy.

Ratio of Remuneration by TypeAs a rough indication, the percentage of each remuneration for Directors by type is as follows.
Fixed remuneration

65 %

28 %

7%

Performance-based stock remuneration* In the case that the standard performance is achieved 100%.

Appointment of Executives

Basic Policies
Remuneration for Board of Directors in our Company isdesigned to be a driving force to operate business leading
to sustainable development and the improvement of medium- to long-term enterprise value by steadily carrying out
management plans and business strategies. The policy forthe determination of content of remuneration, etc. is determined by the Board of Directors with consideration for the
responsibility of individual positions and their impact onmanagement in the light of a report from the Nomination/
Remuneration Committee. Specifically, the remunerationof Directors (excluding Outside Directors) consists of fixedcompensation (money), performance-based compensation(money) and performance-based stock compensation*,and the remuneration of Outside Directors consists only of
fixed compensation with a view to ensuring the adequacyof their duty to supervise business execution.
Additionally, the remuneration of Corporate Auditors
consists only of fixed compensation, which is determinedwith the cooperative consultation of Corporate Auditors.
* Our Company introduced the performance-based stockcompensation plan at the end of the Ordinary General
Meeting of Shareholders in June, 2023.

Policy and Procedure for the Appointment of Executives
It is our belief that a candidate for a Director’s position
nominated by the Board of Directors and an Executive
Managing Officer appointed by the Board of Directors
have to be a person who is acquainted with various issues
in business management, and excellent in personality,
knowledge and executive ability, being able to fulfill duties of a manager. In nominating a candidate for Director’s
position, the Board of Directors makes a recommendation
based on a report from the Nomination/Remuneration
Committee and the rules governing the Board of Directors,
and the appointment of an Executive Managing Officer ismade by the resolution of the Board of Directors basedon a report from the Nomination/Remuneration Committee
and the rules governing Executive Officers.
It is our belief that a candidate for a Corporate Auditor’s position appointed by the Board of Directors has tobe a person who can play a role as part of the supervisory
function of the Company in cooperation with the Board of
Directors, bear the responsibility of auditing the executionof duties by the Directors as an independent body having amandate from stakeholder, and can always maintain a fairand unbiased stance and act on his/her belief, in addition
to striving to maintain the independent position as an Corporate Auditor. In appointing a candidate for a Corporate
Auditor’s position, the Board of Directors shall receive theconsent of the Board of Corporate Auditors based on a report from the Nomination/Remuneration Committee.

Background of the Introduction of the Performance-based
Stock Compensation Plan
This plan was introduced with the aim of raising awarenessto contribute to the medium- to long-term improvement ofbusiness performance and our enterprise value by further
clarifying the interrelation between the remuneration of
Directors, our Company’s performance and its stock value
as well as by Directors sharing benefits and risks due tostock price fluctuations with shareholders.
●

Performance-based remuneration

Evaluation on the Effectiveness of the Boardof Directors

Efforts to Enhance Corporate GovernanceIn our Company, the Board of Directors, which takes theinitiative in analyzing and evaluating itself, conducts aquestionnaire to evaluate its effectiveness once a year asa means to improve the function of the Board of Directors.
The Board of Directors of the Company had all Board of
Directors and Corporate Auditors conduct a self-evaluation
through the questionnaires in March, 2023, and the Boardof Directors analyzed and evaluated itself based on the obtained results, from the content of the answers, the Boardof Directors was confirmed to be operating effectively on
the whole.
Regarding the issue of the cooperation system between
Outside Directors recognized in the analysis and evaluation of the previous fiscal year, after holding a meeting to
exchange opinions between Outside Directors, the linkage
between them was confirmed to have been improved. It
was also confirmed that the quality of training for Executives had been improved as a result of providing various
seminars and making various efforts such as by arranging
lectures.
We will continue to make efforts to improve the functionality of the Board of Directors, with consideration for
the results of the evaluation of its effectiveness and its
efforts to address issues.

June 2004

Introduction of the executive officer system

June 2005

Increase in the number of Corporate Auditors(four persons → five persons)June 2006

Abolition of retirement benefits for Executives

June 2006

Change in the terms of Directors (two years → one year)

June 2009

Appointment of Outside Directors

June 2013

Increase in the number of Outside Directors(one person → two persons)

December 2015

Initiation of evaluation on the effectiveness of theBoard of Directors

June 2018

Appointment of a female Outside Director

June 2018

Increase in the number of Outside Directors(two persons → three persons)March 2019

Abolition of anti-takeover measures

March 2019

Establishment of the Nomination/Remuneration
Committee

November 2021

Establishment of the Sustainability Committee

December 2021

Disclosure of skill matrix

Month/Year

Position
Classification

Directors

Outside Directors

OutsideCorporate
Auditors

Total Amount of Remuneration, etc. of Executives in FY2022

Diversity of Executives (Skill Matrix)
It is our belief that the Board of Directors should consist of
persons who are acquainted with various issues in business
management, and excellent in personality, knowledge and executive ability, being able to fulfill duties of managers in abalanced fashion. The combinations of skills, etc. possessedby Directors and Corporate Auditors are as follows.
Knowledge/Experience/Capabilities

Name

Management

Finance/
Accounting

Law/ComplianceInternational
affairs

●

●

●

●

●

Tadashi Shimizu●

Kazuhiko Maeda●

Minoru Irisawa●

Nobuyuki Tokunaga●

Akihiro Ishii●

Yoshinori Akamatsu●●

Tetsuo Nishide●●

Sustainability

Sales/MarketingTechnologies/
R&D

●

●

●

●

●

●

●
●

Kimi Koinuma

●
●

●

●

●

●

●

●

●

Masaya Kawata
Corporate
Auditors

Matter to Be Addressed

●

●

●

Takao Tomioka
Masanori Murata●

Toshihide Nishimura●

Toshifumi Mikayama●

Masako Goto

●

●
●

●

●

The table below includes one Corporate Auditor who retired from office by the end of FY2022.
Total Amount of Remuneration, etc.
by Type (million yen) he Ratio of Independent Outside Directors among
T
All Directors

●

9 (3)

Independent
Outside Directors

Inside Directors

FemaleExecutives

Male Executives

– (–)

6 (3)

66.7 %

85.7 %

15

33.3 %

14.3 %

73

3

6

2

12

Executives Classification

Total Amount of Remuneration, etc.
(million yen)Fixed remuneration

Performance-based remuneration

Directors (Outside Directors included)

265 (31)191 (31)73 (–)

Corporate Auditors(Outside Corporate Auditors included)

59 (23)59 (23)

Total

324

250

34 Central Glass Integrated Report 2023

Number of Eligible
Executives (person)● he Ratio of Female Executives among All Directors
Tand Corporate Auditors

Central Glass Integrated Report 2023

35

｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜Environment and Safety
The Central Glass Group will continue to work for the realization of a productive social environment through Responsible Care
Initiative, while showing consideration to the global environment, human health and safety.

Environment and Safety Management
The Central Glass Group has established the Guidelines for Environment, Safety, and Health based on the Corporate Philosophy and Code of Conduct. While not only appropriately complying with the law, we also promote management considering
the environment and safety with the aim of carrying out corporate activities at a higher standard, meeting social demands,
and creating a safe and comfortable working environment.

Promotion of Environmental Protection
Material Balance of the Central Glass GroupThe Central Glass Group continues its efforts to reduce the environmental impact of production activities by carefully
monitoring the amount of energy and resources used in our production activities as well as the environmental impact theygenerate. These efforts primarily focus on reducing emissions of greenhouse gases (hereinafter referred to as GHG) and discharge of environmentally hazardous substances into the air and water, as well as on recycling waste and reducing the final
disposed amount. We will continue to monitor our resource consumption and amount of waste to further control generation,
emissions and discharge of GHG, environmentally hazardous substances, and waste, as well as promote cyclic use to build
a recycling-oriented society.
*

Since this fiscal year, the data posted under the heading “Promotion of Environmental Protection” have been changed to represent the total emissions amount from
our Company and the consolidated companies (in the past: the area within the reach of operational control), and the historic data have also changed in the samemanner.

●Guidelines for Environment, Safety, and Health

Enacted: October 30, 2020

“Everything is for people and the global environment”
The Central Glass Group, as part of the Responsible Care Initiative, shall ensure environment, safety, and health compliance in all processes from development to manufacturing, logistics, use, final consumption, recycling, and disposal
with the sincere cooperation of each and every employee. The Group shall announce the achievements and engage indialogue and communication with society.

Material Balance (FY2022 Results)

INPUT
495 thousand tons

Total Amount of Materials Input

Central Glass Co., Ltd.

Affiliate Companies

Central Glass Co., Ltd.

Affiliate Companies

330 thousand tons

165 thousand tons

9.165 million m

1.180 million m

4,193TJ

1,054TJ

3

Management
systemContinuous improvements

Engage in activities based on rules such as regulations and standards and strive for continuous
improvement.

Prevention and risk treatment

Try to prevent problems from occurring and, if a problem should occur, make efforts to prevent a
recurrence by analyzing the root cause appropriately.

OUTPUT

Manufacturing

Environmental protection

Understand the influence that activities related to all processes from development to manufacturing,logistics, use, final consumption, recycling, and disposal have on the environment and promote thereduction of their environmental impact.

Process Safety and disaster prevention

Secure a working environment that enables employees to work safely and ensure the safety andsecurity of the local community by making efforts to prevent accidents and disasters such as fire,
explosions, and chemical spills.

Occupational health and safety

Endeavor to eliminate potential dangers in the working environment and promote activities that leadto the support and maintenance of mental and physical health, in addition to promoting activities toprotect one’s own life, body, and health.

Distribution safety

Comprehensively promote safe logistics to protect safety of employees, forwarding agents,
pickup and delivery service providers, and the environment by managing the means of transportation,transportation status, and safety information, and making efforts to broadly communicate measuresin the event of an accident.

Chemical substance management

Protect the safety of all operators, including our customers and the environment, by understanding
the danger and toxicity of chemical substances and managing and handling them properly.

Communication

Announce the details of our activities and achievements and actively engage in dialogue with all
stakeholders.

Environment and Safety Management
Promotion System
The Central Glass Group has established the Environment
Safety Promotion Committee, and the Environment and
Safety Department acting as its secretariat is promoting
Group-wide environment and safety efforts. The head office, research centers, plants and affiliate companies incorporate items unique to each business site into a specific activity plan and engage in environment and safety
initiatives.
36 Central Glass Integrated Report 2023●

Environment and Safety Management Promotion System
Management Committee

Organizational Hierarchy
Supporting Relationship

Environment and Safety Promotion Committee
Environment and
Safety Department
Headquarters

Research Centers

Plants

Sale

Logistics

Air

GHG Emissions *1

Use(business partners)(end users)

Water area

Disposal

332 thousand tons CO2

Total Amount of Discharged Water

Affiliate Companies

Central Glass Co., Ltd.

Affiliate Companies

Central Glass Co., Ltd.

Affiliate Companies

Central Glass Co., Ltd.

Affiliate Companies

9.167 million m

0.204 million

28 thousand tons

9 thousand tons

70%

83%

Central Glass Co., Ltd.

273 thousand tons CO

2

Confirm the conformity, validity, and efficacy of each requirement through regular audits andinvestigations and take appropriate action if necessary.

3Central Glass Group(Suppliers)

Accurately understand and comply with the details of laws and regulations.

5,247TJ

Total Amount of Energy Input

Affiliate Companies

Raw Materials
Procurement

Compliance10.345 million

Total Amount of Water Resources Input

Central Glass Co., Ltd.

Air Pollutants Emissions

59 thousand tons CO

322,413 tons

Water Pollutant Emissions

9.371 million m3

59.6 tons

37 thousand tons

Total Amount of Industrial Waste Emissions

Final Disposed Amount of Industrial Waste

72%

Recycling Rate

15.6 thousand tons

Central Glass Co., Ltd.

Affiliate Companies

Central Glass Co., Ltd.

Affiliate Companies

Central Glass Co., Ltd.

Affiliate Companies

2,357 tons

56 tons59.3 tons

0.3 tons

13.7 thousand tons

1.9 thousand tons

*1 GHG emissions: Including energy and non-energy fields, six gases, and fluorocarbons

Reduction of GHG Emissions
・Medium- and Long-Term Targets
	Reduce total Scope 1 and 2 GHG emissions for the entire Group by 40% from the FY2013 level by FY2030.
Challenge to realize net-zero GHG emissions in 2050

sions and environmental impact throughout the Central
Glass Group, including both at domestic and overseas affiliates in order to prevent global warming.
●

GHG emissions (Scope 1 and 2)(10 thousand tons-CO2)・GHG (Scope 1 and Scope 2) Emissions Result
In FY2022, we withdrew from the automotive glass businesses in United States and Europe and suspended theoperation of some of the domestic glass furnaces, which
led to the reduction to 332 thousand tons-CO2 (58% reduction from the previous fiscal year). We are planning toevaluate the feasibility of the 2030 targets after implementing a structural adjustment calculation of the amountof emission from the businesses that have already beensold.
We have included our policy to constantly reduce GHG
emissions intensity in our Company’s materiality (priority
issues), and achieved a reduction to 2.0t-CO2/million yen(47% reduction from the previous fiscal year) in FY2022.
We will continue to work on the reduction of GHG emis-

140(tons-CO2/million yen)

5.0
5.0

120

4.1
100

96.7

95.0

4.2

4.0

3.8

4.0

89.5
80.4

80

79.2

60

3.0

2.0

40

2.0

33.2
1.0

20

0.0

0
2013

2018

Central Glass Co., Ltd.
(left axis)

2019

2020

Domestic Affiliates(left axis)

2021

2022 (FY)
Overseas Affiliates(left axis)

Intensity (right axis)

Affiliate Companies

Central Glass Integrated Report 2023

37

｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜Reduction of Water Use
In the Central Glass Group, water use decreased in FY2022
due to the non-operation and periodic repairs of the flatglass manufacturing lines, which led to a year-on-year decrease in water intake intensity per sales.
In FY2023, we are expecting to see a short-term increase in water intake due to an expected increase in water
use following the reactivation of the flat glass manufacturing lines that underwent periodic repair; we will aim to
decrease water intake intensity per sales in the medium
to long term by proactively promoting the efficient use ofwater.
●

Water use

(Thousand m3)(m3/million yen)

96.8

25,000100

86.2
20,00081.8

79.4
18,244

19,186

18,448Air and Water Pollutant Emissions
・Air Pollutant Emissions
Our Group monitors the concentration and amount of sulfur oxides (SOx), nitrogen oxides (NOx), soot and dust,
and other air pollutants emitted, in accordance with the
Air Pollution Control Act, the laws and regulations of eachcountry, and the emission standards of the regions where
our facilities are located. Some plants have installed environmental protection equipment such as desulfurizationequipment for SOx, catalytic adsorption equipment for
NOx, and electrostatic precipitators for soot and dust to
recover air pollutants before they can be discharged into
the atmosphere.
In FY2022, we reduced emissions of air pollutants by
structural reform of the Glass business and suspension of
the flat glass manufacturing lines.

80
16,872●61.1

15,000( t)

60
10,345

10,000

Air Pollutants Emissions

6,000
40

5,000

20

Promotion of the Management of Chemical
Substances

Promotion of Industrial Health and Safety
With the aim of ensuring the safety of workplaces, ourGroup has formulated the Safety and Health Management
Policy, and conducts occupational health and safety activities at each business site in Japan and overseas.
In FY2022, our Company and domestic affiliates andbusiness partners suffered a total of 27 occupational accidents, of which 6 cases were accidents that require time
off from work and 21 cases were accidents not accompanied by lost worktime, with year-on-year decrease of 7 and5 cases, respectively.
Our employees throughout the Group will continue tocarry out activities to prevent work-related accidents andwork on the promotion of industrial health and safety.

Amount of Chemical Substances Subject to the PRTR
Law*1 Emitted, Discharged, or Transported
Our Company and our domestic affiliates ascertain the emissions and transfers of substances subject to PRTR*2 notification and report on them in accordance with the Pollutant Release and Transfer Register (PRTR) law and the PRTR system.
The number of substances subject to PRTR notification in
FY2022 decreased from the previous year by seven substances
to a total of 54, and their emissions*3 increased by 15.6% fromthe previous fiscal year, while transfers*4 decreased by 10.3%
from the previous fiscal year due the promotion of recycling.
We will continue to promote initiatives for the reduction of
the emissions and transfers of substances.

●

5,270

5,113

5,140

4,517

3,000

Lost time injury frequency rate

(%)
2.5

4,000
5,000

Promotion of Industrial Health and Safety,
and Security and Disaster Prevention

2,413

2.0

2,000
0

2018

2019

2020

2021

2022 (FY)

0

1.5

1,000
0

Central Glass Co., Ltd.
(left axis)
Intensity (right axis)

Overseas Affiliates(left axis)

Domestic Affiliates(left axis)

SOx

Soot and dust

40
20

12.6

0

10

2018
COD

2018

2019

Central Glass Co., Ltd.

38 Central Glass Integrated Report 2023

2020
Domestic Affiliates

2021

2022 (FY)

Overseas Affiliates

2019
Total phosphorous

2020

2021

Central Glass Co., Ltd.

2020

2021

2022 (FY)

Domestic Affiliates/Business Partners

Manufacturing Industry

Lost time injury frequency rate: (number of deaths or injuries resulting in lost work
hours/total working hours) x 1,000,000

290
254

250

212

200
150
100

101

114

99

94

67

50

Promotion of Security and Disaster Prevention
Our Group has been working on the development of disaster prevention and security systems with the aim of reducing to zero the number of accidents including fire andexplosion accidents, chemical spills, etc. However, we haveseen an increase in the number of forklift-related accidents
involving property damage in the last few years.
In FY2022, we strove to prevent such accidents by making opportunities for discussions on causes and countermeasures based on these accident cases, and continuing
to implement skill training courses of forklift operation offered by a forklift manufacturer, while intensifying handson training involving partner companies.
We will continue to make every effort to ensure not only
safe working environments for our employees but also safe
and secure local communities.

0

2018

2019

Central Glass Co., Ltd.

2020

2021

Transfers

14.1

15.6

2019

Emissions

17.3

2018

324
283

Transfers

59.6

60

0.0

300

Emissions

20.8

80.5

350

Transfers

77.3

80

(t)

0.5

Emissions102.3

 missions and Transfers of Substances Subject to the PRTR
E
notification (Central Glass Co., Ltd./Domestic affiliates)

Transfers

104.0

100

●

1.0

Emissions

Water Pollutant Emissions

120

20

2022 (FY)(t)(Thousand tons)
30

0

2021

Transfers

Final Disposed Amount of Industrial Waste

NOx

2020

・Water Pollutant Emissions
Our Group monitors the concentration and amount of waterpollutant emissions, such as COD, total phosphorous discharge, and total nitrogen discharge, in accordance with
the Water Pollution Control Act, the laws and regulationsof each country, and the emission standards of the regions
where our facilities are located. At each plant, the wastewater treatment facilities necessary for environmental conservation have been installed to remove pollutants and recollect active components in wastewater before discharge.
In FY2022, we reduced emissions of water pollutants by
structural reform of the Glass business and suspension of
the flat glass manufacturing lines.
●

●

2019

Emissions

Reduction of the Final Disposed Amount of Industrial
Waste
The Central Glass Group strives to reduce industrial waste.
In FY2022, the final disposed amount of industrial wastefrom our Company increased due to implementing the prior disposition of sludge. The final disposed amount of industrial waste from the domestic and overseas affiliates
decreased; however, the one from our Group was 15,600
tons (23% increased from the previous fiscal year).
We will continue to work toward the reduction of final
disposal amount through the promotion of emission reduction and recycling by reducing industrial waste generationand the use of plastics, as well as by implementing thorough sorting of waste.

2018*1	PRTR Law: Act on the Evaluation of Chemical Substances and Regulation of
Their Manufacture, etc.
	(The act with the purpose of promoting voluntary improvement of the management of chemical substances by business operators and preventing any impediments to the preservation of the environment)*2 PRTR: Pollutant Release and Transfer Register*3	Emissions: Amount released into the atmosphere, public water, soil, and amountlandfilled*4	Transfers: Amount transferred to the sewage system, amount consigned to industrial waste disposal company (excludes shipments as products)

2022 (FY)

Domestic Affiliates

Promotion of the Self-Sustaining Management of Chemical
Substances
Toward the self-sustaining management of chemical substances, our Group will make sure to convey information on
products labels and safety data sheets SDS*1 and expand
the number of substances subject to risk assessments, responding to new regulations on chemical substances forproper use of protective equipment.
*1	SDS (safety data sheet): A document that includes information on physical-chemical properties of the chemical product involved and its dangerous andhazardous properties, etc.

2022 (FY)

Total nitrogen

Reducing emissions of air and water pollutants is an
important challenge in regard to the global environmentand human health and safety; therefore, we will continue
to carry out appropriate management reliably.

What Is Responsible Care (RC)?
Responsible Care is a set of voluntary activities to implement and improve environmental safety measures based on a public
commitment to a management policy aimed at preserving the environment and ensuring safety and health in all product processes from development to manufacturing, logistics, use, final consumption, recycling, and disposal.
Based on the recognition that companies must not merely comply with laws and regulations but should also execute voluntary
management in order to sustain the environment, safety, and health as well as fulfill their corporate social responsibilities, an
optimal balance of legal compliance and voluntary industry (corporate) management has become essential.

Central Glass Integrated Report 2023

39

Human Resource Strategy and Development
It is each employee that is leading this R&D-oriented company aiming at the realization of a sustainable society as adriving force. With a view to achieving this goal, we are promoting psychological safety at work that will always bring’SMILE’ to all employees’ (group members’) faces through providing opportunities and environments that allow individual
workers to give full play to their abilities and talents in accordance with a newly formulated personnel strategy.

Personnel Strategy
In our Corporate Philosophy, we declare: “Creating a Better Future Through Monozukuri ’The Central Glass Groupwill contribute to the establishment of a truly prosperous
society through the spirit of Monozukuri’,” defining all corporate activities by our Group from research and development, manufacturing, sale and all operations supportingthem to social contribution activities as Monozukuri.
We also have a long-term vision of becoming a continuously growing company driven by new technologies andnew products created through R&D, aiming to optimize thebusiness portfolio, establish a profitable business modeland convert to a highly profitable company by strengthening R&D as our growth driver.
At the same time, to advance the Medium-Term Management Plan, we share technologies, solutions and qual-

Personnel Strategy of
the Central Glass Group~Securing of the Four Things~

ities expected by stakeholders as well as values and goals
related to the global environment, promote the creation ofideas to meet such requirements and needs and take necessary measures. To that end, we find it essential for our
Company itself to cultivate sensitivity and work on themwith more flexible mindset (=diversity).
Thus, based on the recognition that it is a person thatdrives an R&D-oriented company forward, it is a personthat provides values required by society, and, above allthings, it is a person who supports Monozukuri, we will
work on the recruitment, training, allocation and retainingof personnel.
Specifically, corporate culture in which each person (individual employee) is cherished will support Monozukuri(corporate activities) and create new value. With this inmind, we have established our personnel strategy based on
the idea that both corporate culture and systems are also
created by persons.

(1) Securing of acceptability: Recognizing individuality each other(2) Securing of a place to stay: Being able to realize the meaning of his/her own existence(3) Securing of equity: Being able to exchange candid opinions with each other and take on
new challenges(4) Securing of fairness: Being able to maintain high motivation

By taking advantage of our corporate culture characterized
by amenableness and earnestness that has been cultivatedand successively passed down in the company since its
foundation, and providing the opportunities and such environments with a slogan of “Securing of the Four Things,”
we will contribute to the creation of corporate culture thatalways brings ’SMILE’ to all employees’ (group members’)
faces, and promote psychological safety at work. In addition, we will implement measures for employees’ healthmanagement and maintenance and their mental health,and work on the employees’ health promotion from theperspective of improving their well-being and promoting
sustainability.
Toward securing each of the four things, we will translatethem into the form of concrete materiality and KPIs, andwill firmly support the implementation of our management
and business strategies as well as the realization of our
Corporate Philosophy.
Priority Issues and Main Measures(1) Securing of Acceptability

Recognizing each other’s individuality

Promotion of active participation of female employees, employeeswith foreign nationalities, employees with disabilities, or midcareer hires
Encouragement for male employees to take parental leave
Encouragement to take paid leave(2) Securing of a Place to Stay

Being able to realize the meaning of his/her own
existence

Promotion of active participation of employees in a professional
position
Increase in the ratio of female employees in managerial posts(manager/assistant manager)
Reskilling of employees(3) Securing of Equity

Being able to exchange candid opinions witheach other and take on new challenges(4) Securing of Fairness

Being able to maintain high motivation

40 Central Glass Integrated Report 2023

Promotion of the use of Challenge System
Inspection and revision of the flextime/working from home system
Implementation of employee training and job rotation
Execution and utilization of engagement surveys｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜Priority Issues and Main Measures■ Promotion of the Active Participation of Female Employees ((1) Securing of acceptability, and (2) Securingof a place to stay)
Since our Company implemented the company split as of April 1,
2023, causing major changes in the number of employees andthe composition of personnel, we have newly established KPIs.
In accordance with the purpose of the Act on Promotion of Women’s Participation and Advancement and the Act for Measures to
Support the Development of the Next Generation, we will work toincrease the ratio of female employees by expanding the opportunities and improving the working environment for them.
We will also take measures to change the attitude of not only
female workers but also that of supervisors having female employees as subordinates toward the appointment of a female employee to a managerial position through providing training, withthe aim of creating an atmosphere and an environment that willencourage everyone to reach out for a managerial position.
By increasing the ratio of female employees through these efforts, we will work on the development of an organization having
a diverse range of perspectives and the vitalization of our corporate culture.

operational policy of the organization based on a superior policy
and promote the management of duties within their jurisdiction
to achieve the policy. By utilizing this system, we will evaluate
workers by job group and in a point-by-point and item-by-itemmanner, instead of evaluating them uniformly as in the past.
The Challenge System allows workers in the job group mainly incharge of carrying out duties in specialized fields to make a shift
to the other group mainly in charge of management work.
Since it is desirable for the Company to have employees who
acquired sufficient knowledge and experience engage in management work, we will encourage employees to actively utilize
this system.
■ Improvement of Engagement ((4) Securing of Fairness)
In the midst of growing importance of the human capital management in which viewing human resources as capital and maximizing their value lead to the medium- to long-term improvement ofenterprise value, changes in the labor market (aging population
and a declining birthrate, diversification of working styles, etc.)
leads to the acceleration of the mobility of human resources.
Under these circumstances, our Company will identify thepresent engagement status and related factors by investigating
actual status of the Company (Corporate Culture, an internal environment, and systems and measures available) from the employee viewpoint, clarify the issues involved and assign priorities
to such issues and promote the implementation of necessary
measures in an interactive manner, with the aim of improving theengagement of employees.

FY2022
Results

FY2024
Targets

Ratio of Female Employees in
Career-track Employees

13%

15%

Ratio of Women in Managers

2.5%

4%

Percentage of Male Employees
Utilizing Parental Leave

39.7%

55%

columnPercentage of Male Employees Taking
Parental Leave for 30 Days or Longer

38.0%

45%

Employees with Foreign Citizenship Introduced in
In-House Bulletin■ Encouragement for Men to Take Parental Leave((1) Securing of Acceptability)
Since it is common for men to take part in childcare nowadays,
we encourage male employees to concentrate on raising their children. Specifically, when a male employee submits a notification on
childbirth, a personnel department representative directly provides
to the notifier himself sufficient information on the childbearing
leave program including the acquisition of leave of 30 days or
longer, responding to each case in a cordial manner. In particular,
our childbearing leave program newly established in FY2022 stipulates the treatment surpassing that prescribed in laws and regulations regarding parental and nursing care leave in terms of wages.
In this way, by cultivating a culture that allows male employees totake childcare leave with no hesitation, we will aim to be a company
in which regardless of gender, employees whose time is restrictedby childcare, nursing care or other responsibilities can work with apeace of mind for a long time. With this background, we are taking
various measures to improve our work environment such as by promoting the institutionalization of working from home.

As one example of diversity activities advanced by theCompany, we had an online round-table talk with employees with a foreign citizenship playing active roles
in our Company and introduced its content through thein-house bulletin. The contributers shared what theylearned from this event with the following comments:● I used to have an impression that they were using Japanese without having difficulties, but I found they havecommunication anxiety.
● Likes and dislikes vary from person to person evenamong people with the same nationality, which is trueof Chinese.
After realizing these, there were voices from the contributors saying that they came to understand that accepting that some attributes need careful considerationas common sense and communicating with individuals
with an open mind, which may sound contradictory toeach other, are important in showing respect for the diversity of people regardless of their nationality.

■ Promotion of the Use of Challenge System((3) Securing of Equity)
In 2021, our Company fundamentally revised the personnel system with the aim of (1) reinforcing its cooperation with business,(2) responding to diversifying human resources and ways of working, and (3) realizing equal and fair treatment. In the planning ofa system, we introduced a job group system that divides workers
into two groups: one job group in which workers acquainted witha specific specialized field carry out their duties in that specialized field by utilizing their knowledge, techniques and abundant
experience, and the other job group in which workers develop an
Central Glass Integrated Report 2023

41

｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜Central Glass Co., Ltd. will, as a company that
continues to provide excellent products withhigh added value, aims to increase the value ofhuman capital across the Group by improving
the education system and its personnel system,
as well as by making group-wide efforts to further improve employees’ skills.

Basic Policies for Human Resource Development
Central Glass Co., Ltd., is viewing human resources as capital serving as a source of competitiveness, respects thediversity and independence of individual employees constituting the organization, and is working on the systematic
cultivation of human resources and career development. We
work for the growth of individuals and the improvement oforganizational strength with the purpose of increasing thesatisfaction of employees, Company’s important capital,and enhance enterprise value through Monozukuri full oforiginality, contributing to the realization of a sustainable
and prosperous society.
●

Clarification of Vision of Desired Human
Resources and Systematization of Education

Establishment and Securing of Our Original
Technologies

The educational system of Central Glass Co., Ltd. has been
established under the education philosophy of nurturing
human resources with sincerity and well-rounded character, those having a strong sense of responsibility and ability
to take action, and those who are free-minded having originality and creativity as producers, as well as human resources with true ability to lead others as an administrator
and supervisor, and those who are rich in humanity having
a long-term view as an international person, by leveraging
our corporate culture characterized by amenableness andearnestness. Having established this educational system
supported by the three pillars of the general education,
the Monozukuri education and the career development education, we will aim to improve the solidarity and productivity of the organization, while supporting the growth andself-realization of individual employees.

In the Monozukuri education, we support the efforts oftechnologists, engineers, and workers engaged in indirect operations to raise their consciousness and acquireneeded knowledge and skills according to their expected roles, with the aim of surviving global competition asa manufacturer.
Among them, the engineer education includes an
educational system utilizing our Active Expert Center(AEC) established in FY2008 as a place to nurture candidates for leaders’ positions in manufacturing departments through practical theme-based activities, such as
by allowing trainees to concentrate on studying how toanalyze and solve issues and think logically apart fromtheir duties for one year. Until now, 171 persons havecompleted this program.
We have also established a skill-up support system
in which an employee holding an original technology is
appointed as a senior expert at each work-site to pass on
specialized knowledge and skills.

Education for Career Development
Management and globalization

 onozukuri Coupled with Human Resource
M
Development Leading to a Better Future

Monozukuri Education●

Education of engineers, technologists andworkers engaged in indirect services
Socialcontribution

General Education
Sustainability, compliance, Corporate Philosophy,
and Code of Conduct

Toward Truly Contributing to Society
Individual growthMateriality and KPIs
Based on the idea that Monozukuri is Hitozukuri, we will
clarify the number of hours spent for educating each employee as a KPI, aiming to enhancing human resources
constituting a part of important capital.
Number of Hours Spent for Educating Each Employee
FY2022
ResultFY2023
Targets

FY2024
Targets

18 hours

22 hours

25 hours

In the general education, we provide each employee with
opportunities to deepen their understanding of our Corporate Philosophy and the Code of Conduct, and consider how
they can contribute to the development of the Company
and society as a person belonging to an organization forthemselves. Since FY2019, in addition to the e-learning
system that allows all employees of Central Glass Group
including management personnel to conduct self-study, we
have provided various opportunities such as communication
meetings in which management team explains to young employees about the Corporate Philosophy and company policies, and introduce specific cases regarding response tocompliance, as well as discussions to learn from cases ofviolations. Thus, we have provided a system that allows participants to learn from each other and raise their consciousness, contributing to the reform of our corporate culture.
Corporate Philosophy/Management Policies
Sustainable social contribution and strict compliancewith laws and regulations

Code of Conduct/Social Norm
Communication meetings with executives,
in-house lectures, group discussion, and e-learning

42 Central Glass Integrated Report 2023

Position-based education

Passing on skills (OJT)

Organizational
strength● romotion of Hitozukuri Supporting Monozukuri asP
an Continuously Growing Organization Driven by New
Technologies and New Products Created through R&D(Off-JT)● Collective Education forWorkers Engaged in
Manufacturing Services

Skill Acquisition Support System● AEC Trainee Educational System●

Cultivation oforiginality withrespect for
pioneer spirit

Engineer
education(SD･OJT･Off-JT)
Intellectual
Property
Education● Self-Training
System● Study Abroad for
Research●

Technologist
education

Position-based education (Off-JT)●

Collective Education forWorkers Engaged inIndirect Services

Education
for workers
engaged inindirect
services●

Education for Career Development
Educational
SystemOutline

New position
training

Change in the way of thinking and support for knowledge/skill
acquisition according to a shift in positions and roles, such asentering company and promotion (eligibility-based programs)

Management
education

Gradual career development and nurturing of candidates for
managerial positions (eligibility-based and selection-based
programs)

Businessskillsdevelopment
education

Language study programs for global human resource
development, support for acquiring various business skills aswell as knowledge and skills intended for the enhancement oforganizational productivity and the improvement of an ability
to make improvements (selection-based programs, andself-development support)

Professional
development
education

Nurturing of highly professional personnel for various fields
such as those related to legal work, intellectual property
rights, environment and safety, and quality (eligibility-based
and selective programs)

Global Human Resource Development
For global human resource development, Central Glass Co., Ltd.,
which has been developing business in Asia and Europe and theUnited States while creating a supply chain, supports employees
in acquiring skills in foreign languages such as English, Chinese,
Korean, Czech, etc. and works on the development of young employees and supports them in the preparation for overseas assignment by providing an education system with various programs suchas the MBA study abroad program to study at an overseas businessschool, preparation education for employees to be transferredoverseas, and a courses to develop globally minded employees.
●

Picture of Career Development
New-Employee Training(Off-JT and OJT support)

Educational System to Nurture Young
Employees
Passing on Techniques/Skills (OJT)

Attending External Seminars

Self-Training System (SD/Off-JT)

Short-Term Overseas Language Study

Position-based education (Off-JT)
Basic Management Education (Off-JT)

Educational System to Nurture
Mid-career Employees
Education for Newly Appointed Assistant Managers (Off-JT)

Vitalization of Organization and
Improvement of Productivity

Self-Development Support System
Distance Learning
Language Lessons

Study Abroad for Research
Selective Management Education
Study Abroad for MBA(Master of Business Administration)
Schooling for Management ofTechnology (MOT)(optional/selective OFF-JT)

Education System to Develop
Administrators and Supervisors
Education for Newly Appointed Managers (Off-JT)

Individual Growth and Organization Development
Education for Career Development consists of four types of
educational systems, and it is designed to encourage thegrowth of individual employees and improve the organizational strength through on-the-job training (OJT), off-thejob training (Off-JT) and self-development (SD) support.
We provide young employees with eligibility-based educational opportunities which those recommended can participate in every three-to-five years, aiming to raise theirconsciousness, and help them confirm basic knowledge
and acquire skills.

Education for Executives of Affiliate Companies (Off-JT)

Mototsugu Ichinose
Executive Officer, General Manager of
the Personnel Department

Urara Oi
General Manager of Career Creation
CenterCentral Glass Integrated Report 2023

43

｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜Improvement of Product Quality

Measures toward Improving Quality AwarenessWe will emphasize quality control initiatives that place customer satisfaction first. In addition to complying with laws andregulations, our Group takes customer feedback sincerely in order to provide reliable products and services loved by customers.

Become an organization giving reassurance and reliability to stakeholders by ensuring provision of
products and services meeting the needs of customers and society

Permeation of quality culture

We have formulated Quality Guidelines as a guideline for
executing our Code of Conduct based on the Central GlassGroup Corporate Philosophy. The Quality Guidelines forma framework to Prevent, Detect, and Respond to quality
issues, which are vital aspects of compliance.

Prevent

Cultivate aculture ofquality

Provide high quality and reliable products byensuring compliance with laws and regulations,clients’ requirements, and social responsibilities.

Perform
continuous
improvements

Continuously implement quality improvement activities
across the Group throughout the entire supply chain
including outsourcing contractors to keep developing
the quality and safety of our products.

Update andenforce policies
and procedures

Revise and abolish rules as appropriate andcomply with rules.

Improveorganizational
structures

Ensure the independence and authority of quality
control and quality assurance departments so thatthey can fully exercise their respective duties.

Invest in human Invest appropriately in human resources andfacilities that are essential to achieving our quality
resources andobjectives.
facilities

DetectRespondPresident & CEO

Description

Strengthen
audit systems

Detect problems quickly through layered audits
conducted by the plants, quality assurance
departments, and audit departments.

Streamline
reportingsystems

Clarify reporting procedures and reporting
guidelines to ensure quick responses to quality
issues.

Respond toproblems withcorrective andpreventive
actions.

Prevent recurrences of quality problems byidentifying and analyzing the true causes
appropriately, in addition to taking necessary
measures such as prompt information disclosurein a timely manner.

Quality Management System
With the aim of being an organization that offers reassurance and reliability to stakeholders by ensuring that we
provide products and services meeting the needs of customers and society, we take action to promote quality activities under the following Quality Management System.
Group Quality Compliance Committee
The Group Quality Compliance Committee serves as across-functional organization to further strengthen the quality management system of the entire Central Glass Group.
The committee holds three types of meetings: a Quality Promotion Meeting to improve quality activities basedon the PDCA cycle, an Emergency Response Meeting topromptly address quality and product safety issues, anda Corrective Action Meeting to ensure that problems do
not recur.
Multilayered Audits
We incorporate the concept of multilayered audits into
44 Central Glass Integrated Report 2023

Quality promotion meetings

Group Quality
Compliance Committee

Directives

Corrective action
meetings

Quality management (operation)
・Strengthen and maintain the quality assurance system throughmultilayer audits (including audits of suppliers)
・Immediately deal with issues through operation of the quality issue
reporting line
Priority measures in the Medium-Term Management Plan

・Strengthen quality activities through thorough daily management andvitalization of improvement activities
・Develop human resources supporting quality activities by enhancing
quality education

Executive Officers in Charge of Quality
Group Quality
Compliance Committee

Audit Department
Operational Audits

Item

Quality management (system)

Emergency
response meetings

Central GlassGroup

Directives

Quality Assurance Division
Effectiveness
Audits/Supports

Plants/Affiliate
Companies

Monitoring/Directives

Quality Guidelines

internal audits. Specifically, the Company implements athree-layered auditing system comprised of internal quality audits initiated by quality assurance departments at theplants, effectiveness audits to confirm the effectivenessof internal quality audits of each plant conducted by thequality assurance department at the headquarter, and operational audits of the quality assurance department at theheadquarters conducted by the Audit Department.

Departments in chargeof quality assurance
Internal Quality
Audits/Supports
Departments in Charge of Manufacturing

Reporting Line for Quality Issues
We have established a reporting line to promptly respondto quality issues by quickly receiving information on various quality issues discovered by customers or at manufacturing sites and reporting to an appropriate department incharge. This reporting procedure also provides a system
to quickly report serious quality issues to management inorder to take emergency measures without any delay.

Measures(1) Strengthen the quality management system of theentire Central Glass Group by operating the Group
Quality Compliance Committee serving as a Group’s
cross-functional organization.
(2) Incorporate the concept of multilayered audits into internal audits to strive to maintain and strengthen thequality assurance system of the entire Group. Actively
implement audits on our suppliers including contractors as a measure to improve quality.
(3) Properly operate the reporting line dedicated to thehandling of quality issues to promptly respond to every
quality issue. Quickly report serious quality issues tomanagement in order for emergency measures to betaken without any delay.
(4) Strengthen quality activities at sites through the thorough daily management and vitalization of improvement activities.
(5) Enhance quality education for all divisions and positions to develop human resources supporting quality
activities.

Materiality

Medium-Term Management Plan: Measures
toward Improving Quality Awareness

Reduction of the Number of Complaints
We will address the improvement of quality and customer
satisfaction by setting a year-to-year reduction rate concerning the number of complaints as a KPI with the targetof reducing the number of complaints to half during the
Mid-Term Plan period.
In FY2022, we took corrective actions regarding complaints related to quality issues and promptly confirmed
their effect by properly operating the reporting line forhandling quality issues, and implemented the PDCA cycle,
which lead to a year-to-year reduction rate of 24%.
We will make similar efforts in FY2023, aiming to archive a target of 25% reduction.

Objective
Aim to be an organization giving reassurance and reliability to stakeholders by ensuring provision of products andservices meeting the needs of customers and society.

Maintenance/Improvement of Quality by Audits Implemented
by Contractors
We will maintain and improve the quality of entire supply chainof the Central Glass Group by conducting external audits by ourWith the aim of making this Quality Management Systemestablished and ensuring its operation, we have advocatedthe following as priority measures for implementation in
our Medium-Term Management Plan (Mid-Term Plan) for
FY2022 to 2024, that is, “Strengthen quality activities
through thorough daily management and vitalization of
improvement activities,” and “Develop human resources
supporting quality activities by enhancing quality education,” and we have put them into practice.

high-quality contractors.
In FY2022, we achieved an audit-executing rate of 84%
under the support of the contractors, aiming to maintain andimprove the quality assurance system for outsourced products.
In recent years, due to the COVID-19 pandemic, it has beendifficult to conduct audits as planned; however, we have aimed
to increase an audit-executing rate by conducting audits online
or through submission of documents, in addition to auditing
on-site. From FY2023 onward, we will conduct audits with agoal of achieving an executing rate of 90% or higher. We will
also surely provide assistance until any corrective actions or
improvements requested at the time of these audits are implemented, to further improve quality.
Quality Education
We will develop human resources supporting quality activities by improving quality education.
■ Position-based Education
We provide quality education from both aspects of the
career development education and Monozukuri educationaccording to the Central Glass Group’s educational system
in a planned manner. In Career Development Education,
we provide new employees, career-track employees in theirsecond year and fifth year, assistant managers, managers
and executives temporary dispatched to our affiliate companies with quality education considered necessary attheir respective positions systematically. In Monozukuri
Education provided at production sites, we will increase
the opportunities for employees to benefit from it while
improving the content of the quality education.
■ Lectures on Quality
As part of company-wide quality education, on November,
2022, we invited an outside instructor to give a quality
lecture titled, “Strengthen Organizational Capability with
TQM: Improving the Level of Daily Management and Improvement Activities.” The event was held online for an
audience of roughly 700 people. We will continue to holdlectures featuring subject that will raise company-wide
quality awareness while aiming to increase the number ofaudiences in FY2023.
Central Glass Integrated Report 2023

45

｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜Message from Outside Directors

Outside Director

Kimi Koinuma
I have been serving as a lawyer since 1991, and was appointed as an Outside Director of the Company in 2018.
From my background as a lawyer, my role as an outside director is not only to perform a check function with respect
to management and business execution from a legal perspective, but also to fulfill that role in areas such as compliance and governance, such as conflicts of interest.
These days, the idea that a company bears responsibility for society is more strongly emphasized than before. With
the responsibility for society mentioned here coming to mean the one based on more comprehensive and universal
values, since it is basic qualities of the legal profession to respect diverse values with a broad view and act based onuniversal values, I would like to proactively state my opinions to the Company from such perspectives.
In the first place, our Corporate Philosophy is “Creating a Better Future Through Monozukuri.” Originally, our Company advocates the principle of exercising a beneficent influence on society and creating a better future, and I also
would like to exert myself, even if in a humble way, so that each person involved in the Company including our employees can have a consciousness of and take pride in contributing to the creation of a better future through the Company.

Masaya Kawata

Tetsuo Nishide

Kimi Koinuma

Outside Director

Outside Director

Tetsuo Nishide

Masaya Kawata

As society is increasingly demanding companies more active for sustainability, the needs for products and technologies related to responding to climate change issues and promoting digitalization will expand significantly both
domestically and internationally even considering by 2030 and 2035. The electrolytes for lithium-ion batteries andchemicals for semiconductor manufacturing processes that Central Glass has uniquely developed and produced are
indispensable raw materials for leading-edge companies that manufacture batteries for electric vehicles and high-performance semiconductors to ensure their competitive advantage into the future. Although it is essential to constantly
improve the performance and functionality of these product lines that produced and supplied by the Company throughdaily research and development activities, these product lines can be said to have characteristics that are less likely
to subject to commoditization amid the ongoing quantitative expansion of demands.
Now that the structural reform of the glass business has settled for the time being, I believe making a structuralshift toward R&D-oriented business portfolio centering around functional specialty chemicals will make this Monozukuri company meet the needs of society and user companies, and lead to high growth potential. I also believe thatappropriately prioritizing resource allocation in this direction will be the driving force for sustainable development
over the medium to long term.

The significance of an integrated report lies in that it allows us to integrally see financial and non-financial information, or economic and social values, and enhance our corporate value while sharing the scenario of a management
strategy toward the sustainable improvement of corporate value with our stakeholders.
Regarding our engagement in the ESG, I think it is important for all executives and employees to work on theirduties with a sense of ownership, and conduct dialogue with the market while disseminating convincing information
to the market from global and future-oriented perspectives. Within the company, it is necessary to shape a flexible
organizational climate securing excellent psychological safety that allows people to engage in candid communicationinteractively and multidirectionally. Regarding financial information, it is important to conduct management from theviewpoint of PL + BS + CF considering capital and asset efficiency including ROE and ROIC as well as sales and profit.
Another important point is to regard the ESG (social value) not as cost increase but as necessary prior investment andlink such value to a business opportunity (economic value) and integrate these values into the improvement of total
corporate value. I believe it is of great importance to create such an innovative strategy.
We have a corporate culture in which we take above issues seriously. Therefore, I believe that one of the importantroles of outside directors is to support accelerating those discussions more openly from the various perspectives.

46 Central Glass Integrated Report 2023

Central Glass Integrated Report 2023

47

｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜Director Introduction (As of end of June, 2023)
Akihiro Ishii

Masaya Kawata

Director, Executive Managing Officer

Outside Director

April 1986
September 2016
June 2019
June 2021

April 1975
June 2006

July 2022
June 2023

Joined the Company
General Manager of Chemical Research Center
Executive Officer, General Manager of Chemical Research Center
Executive Managing Officer, General Manager of Chemical ResearchCenterExecutive Managing Officer
Director, Executive Managing Officer (current position)

Yoshinori Akamatsu
Director, Executive Managing Officer
April 1989
April 2021
April 2022
June 2022
October 2022
June 2023

Joined the Company
General Manager of Chemicals Sales Department
Executive Officer, General Manager of Chemicals Sales Department
Executive Managing Officer, General Manager of Chemicals Sales
Department
Executive Managing Officer
Director, Executive Managing Officer (current position)

Takao Tomioka
Full-time Corporate Auditor
June 1990
April 2014
June 2018
June 2021

Back row from left: Y oshinori Akamatsu, Akihiro Ishii, Masaya Kawata, Kimi Koinuma, Takao Tomioka, Masanori Murata,
and Masako Goto
Front row from left: T etsuo Nishide, Minoru Irisawa, Tadashi Shimizu, Kazuhiko Maeda, Nobuyuki Tokunaga, Toshihide
Nishimura, and Toshifumi Mikayama

Tadashi Shimizu

Minoru Irisawa

Representative Director, Chairman

Director, Senior Executive Managing Officer

April 1978
October 2005
October 2010
June 2011

April 1983
June 2012
June 2013
June 2015
June 2016
June 2018
June 2020
April 2022

June 2012
June 2013
June 2015
June 2016
June 2017
June 2023

Joined the Company
General Manager of International Business Department
General Manager of Personnel Department
Executive Officer, General Manager of the Personnel
Department
Director, Executive Managing Officer, General Manager of the
Personnel Department
Director, Executive Managing Officer
Representative Director, Senior Executive Managing Officer,
General Manager of International Business Department
Representative Director, Senior Executive Managing Officer
Representative Director, President & CEO
Representative Director, Chairman (current position)

Kazuhiko Maeda
Representative Director, President & CEO
April 1984
June 2006
October 2009

October 2012
June 2014
June 2015
June 2021
June 2022
June 2023(excluding those
concurrently serving
as Director)

June 2023

Nobuyuki Tokunaga

Joined the Company
General Manager of Chemicals Business Development
Department
General Manager of Chemicals Business Development
Department (Organization name in Japanese changed withEnglish unchanged)
General Manager of Energy Materials Sales Department
Executive Officer, General Manager of Energy Materials
Sales Department
Director, Executive Managing Officer
Representative Director, Senior Executive Managing Officer
Representative Director, Senior Executive Vice President
Representative Director, President & CEO (current position)

Executive Officer

April 2023

Joined the Industrial Bank of Japan, Limited (currently Mizuho Bank, Ltd.)
Joined the Company
General Manager of Glass Fiber Department
Executive Officer, General Manager of Glass Fiber Department
Executive Officer, General Manager of International Business Department
Executive Managing Officer
Director, Executive Managing Officer
Director, Executive Managing Officer
Representative Director and President of Central Glass Products Co., Ltd.
Director, Executive Managing Officer, General Manager of the GlassBusiness Administration Department
Representative Director and President of Central Glass Products Co., Ltd.
Director, Senior Executive Managing Officer
Representative Director and President of Central Glass Products Co., Ltd.
(current position)

Director, Executive Managing Officer
April 1986
June 2012
June 2014
June 2018
February 2020
June 2021
June 2022
June 2023

Joined the Company
Plant Manager of Kawasaki Plant
Executive Officer, Plant Manager of Ube Plant
Executive Officer, General Manager of Chemicals Business
Development Department
Executive Officer, General Manager of Quality Assurance Division
Executive Managing Officer, General Manager of Quality Assurance
Division
Executive Managing Officer
Director, Executive Managing Officer (current position)

Executive
Managing Officer

Hidehisa Nanai, Shoichi Tsujioka, Isamu Mori and Tetsuo Kanai

Executive Officer

Taizo Kawakita, Masaaki Kawase, Masahiro Seko, Shinichi Okamura, Shigeru Suenaga,
Satoru Narizuka, Yuzuru Morino, Masato Nakashima and Mototsugu Ichinose

48 Central Glass Integrated Report 2023

Joined the Company
General Manager of Intellectual Property Department
General Manager of Glass Quality Assurance Department
Full-time Corporate Auditor (current position)

April 2007
June 2007
April 2008
April 2009
June 2010
June 2011

June 2012
June 2013
March 2019
June 2021
March 2022

Toshihide Nishimura
Outside Corporate Auditor
April 1979
April 2006
May 2009
April 2012

Masanori Murata
Full-time Corporate Auditor
April 1988
June 2018
June 2022

Joined the Company
General Manager of Audit Department
Full-time Corporate Auditor of the Company (current position)

Joined Nisshinbo Industries, Inc. (currently Nisshinbo Holdings Inc.)
Managing Officer, General Manager of Human Resources Division of
Nisshinbo Industries, Inc.
Deputy General Manager of Accounting and Finance Division of
Nisshinbo Industries, Inc. (concurrent position)
Director of Nisshinbo Industries, Inc.
Deputy Chief of Business Support Center of Nisshinbo Industries, Inc.
Representative Director, President of Nisshinbo Brake Inc.
Director, Executive Managing Officer of Nisshinbo Holdings Inc.
Deputy Chief of Corporate Strategy Center, andGeneral Manager of Business Development Division of Nisshinbo
Holdings Inc. (concurrent position)
Representative Director and President of Nisshinbo Chemical Inc.
Director, Senior Executive Managing Officer of Nisshinbo Holdings Inc.
Representative Director, President of Nisshinbo Mechatronics Inc.
Representative Director, President of Nisshinbo Holdings Inc.
Representative Director, Chairman of Nisshinbo Holdings Inc.
Director of the Company (current position)
Director, Chairman of Nisshinbo Holdings Inc.

April 2015
June 2015
June 2016
April 2017
June 2017
June 2021

Joined Onoda Cement Co., Ltd. (currently Taiheiyo Cement Corporation)
General Manager of Construction Materials Business Department of
Taiheiyo Cement Corporation
General Manager of Accounting & Finance Department of Taiheiyo
Cement Corporation
Executive Officer, General Manager of Related Business Department of
Taiheiyo Cement Corporation
Executive Managing Officer of Taiheiyo Cement Corporation
Director, Executive Managing Officer of Taiheiyo Cement Corporation
Corporate Auditor of Nippon Concrete Industries Co., Ltd.
(current position)
Director of Taiheiyo Cement Corporation
Full-time Corporate Auditor of Taiheiyo Cement Corporation
Corporate Auditor of the Company (current position)

Tetsuo Nishide

Toshifumi Mikayama

Outside Director

Outside Corporate Auditor

April 1975
April 1999
July 2002
June 2004
April 2007
July 2007
April 2011
June 2016
June 2017

Joined Ministry of International Trade and Industry
Professor, Graduate School of Nara Institute of Science and Technology(concurrent position)
Director General, Chugoku Bureau of Economy Trade and Industry,
Ministry of Economy, Trade and Industry
Executive Director of Vinyl Environmental Council
Specially Appointed Professor, Graduate School of Business Design at
Rikkyo University
Director General of (Incorporated Association) Japan Chemical Industry
Association
Director General of (General Incorporated Association) Japan Chemical
Industry Association
Chairman of (General Incorporated Foundation) Japan Chemical
Innovation and Inspection Institute
Director of the Company (current position)

Kimi Koinuma
Outside Director
April 1991
April 1991
July 2007
January 2016
June 2018

Registered as an attorney (Daini Tokyo Bar Association)
Joined Masuda and Ejiri Law Office (currently Asahi Law Office)(current position)
Partner of Masuda and Ejiri Law Office (current position)
Supervisory Officer of MORI TRUST Hotel REIT, Inc.
Director of the Company (current position)

April 1983 Joined Kirin Brewery Co., Ltd. (currently Kirin Holdings,Inc.)
September 2002 Director of Pharmaceutical Research Laboratory, Pharmaceutical
Division of Kirin Brewery Co., Ltd.
March 2004 General Manager of Planning Division, Pharmaceutical Division of Kirin
Brewery Co., Ltd.
July 2007 Directors, Executive Officer, Head of Research Division of Kirin Pharma
Company, Limited
October 2008 Executive Officer, Head of Research Division of Kyowa Hakko Kirin Co.,
Ltd. (currently Kyowa Kirin Co., Ltd.)
April 2010 Executive Officer, General Manager of Corporate Strategy & Planning
Department of Kyowa Hakko Kirin Co., Ltd.
March 2012 Executive Managing Officer, General Manager of Overseas Business
Department of Kyowa Hakko Kirin Co., Ltd.
June 2014 Director, Executive Managing Officer, General Manager of Overseas
Business Department of Kyowa Hakko Kirin Co., Ltd.
June 2018 Director, Senior Executive Managing Officer, Supervising Overseas
Business of Kyowa Hakko Kirin Co., Ltd.
June 2021 Director, Executive Vice President Supervising Overseas Business
Department of Kyowa Kirin Co., Ltd.
June 2023 Chairman of Kato Memorial Bioscience Foundation (current position)
June 2023 Corporate Auditor of the Company (current position)

Masako Goto
Outside Corporate Auditor
October 2000 Joined Showa Ota & Co. and Century Audit Corporation(currently Ernst & Young ShinNihon LLC)
April 2004 Registered as a certified public accountant
October 2007 Manager of Shin Nihon & Co.’s (currently Ernst & Young ShinNihon LLC)
August 2017 Vice-Chairperson of Public Relations Committee of the JapaneseInstitute of Certified Public Accountants
October 2017 Senior Manager of Shin Nihon & Co.’s(currently Ernst & Young ShinNihon LLC)
June 2023 Representative of Masako Goto Certified Accountant Office (current position)
June 2023 Corporate Auditor of the Company (current position)
Central Glass Integrated Report 2023

49

｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜Financial Summary
Unit: million yen

Key financial data for the past 10 years

FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

Net sales

191,581

199,010

235,361

228,898

227,810

229,901

222,469

190,673

206,184

169,309

Glass

104,803111,228

153,002150,226

146,613150,737

144,236

112,398

111,838

54,684

Chemicals

86,77887,781

82,35878,672

81,196

79,16378,232

78,274

94,345

114,625

Operating profit

10,111

11,542

13,947

12,982

6,039

10,135

7,975

4,064

7,262

16,757

-60

-623

137

1,780

-3,958487

24-3,020-2,515

2,662

Chemicals

10,176

12,16913,805

11,202

9,998

9,648

7,951

7,084

9,778

14,095

Ordinary income

11,715

14,321

14,61515,091

6,327

11,169

8,565

4,749

11,936

19,637

Profit attributable to owner of parent

5,003

10,393

10,047

10,703

2,980

7,577

6,418

1,230

-39,844

42,494

Total Assets

241,233

282,139

277,627

314,045

316,846

307,103

296,427

284,906

290,696

221,090

Net Assets

135,185

156,580

159,946

172,950

175,628

168,931

164,339

169,083

130,063

107,861

Cash and Deposits

20,557

19,676

19,372

31,342

22,673

21,732

26,25627,97528,216

17,844

Interest-bearing Debt

44,74455,96055,42773,74371,02973,35072,10962,70453,84865,092

Capital Investment

8,770

12,34820,346

24,903

20,24020,125

11,935

7,649

9,514

7,061

Depreciation

8,919

9,287

10,675

10,57812,14812,596

12,93012,85012,182

9,029

Cost for R&D

5,417

5,780

5,613

5,496

5,801

5,809

5,866

5,744

5,448

5,638

Equity Ratio

55.3%

54.4%

56.3%

54.1%

54.4%

53.8%

54.3%

58.1%

43.4%

46.8%

0.34

0.36

0.35

0.43

0.41

0.44

0.45

0.38

0.43

0.63

3.89%

7.22%

6.45%

6.54%

1.74%

4.49%

3.93%

0.75%

-27.32%37.02%

3,188.82

3,688.81

3,804.85

4,156.13

4,255.09

4,083.74

3,978.44

4,091.41

3,115.69

4,176.04

119.58248.42242.00261.02

73.45

187.23158.5930.40-984.58

1,222.21

8

9

10

11

30

75

75

75

75

115

Dividend Payout Ratio

33.4%

18.1%

20.7%

21.1%

40.8%

40.1%

47.3%

246.7%-

9.4%

Price-Earnings Ratio (PER) (times)

14.01

11.41

12.62

9.08

33.74

12.98

11.87

77.50

-

2.40

Price-Book Value Ratio (PBR) (times)

0.53

0.77

0.80

0.57

0.58

0.60

0.47

0.58

0.67

0.70

Cash Flow from Operating Activities

19,47913,082

24,235

17,331

16,351

12,65017,226

17,91814,872

16,599Cash Flow from Investment Activities-10,645-23,366-20,883-21,442-19,778-14,336-7,856-3,737-1,83919,958Cash flow from Financial Activities-13,285

8,611-3,62915,463-5,128291-5,295-13,121-12,744-47,039Glass

D/E Ratio (times)
ROE
Net Assets per Share (yen)Current Income per Share (yen)Dividend per Share (yen)* Our Company implemented the consolidation of stocks to combine five common shares into one share as of October 1, 2017. Accordingly, figures per stock in the table above havebeen adjusted retroactively with the assumption that this stock consolidation had been implemented before October 1, 2017.

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51

｜ Value Creation by Central Glass ｜ Special Feature ｜ Business Outline ｜ Business Foundation Supporting Our Growth ｜ Company’s Circumstances ｜Corporate Outline, Group Companies and Stock Information(As of end of March, 2023)
Corporate Outline

Stock Information

Corporate Name Central Glass Co., Ltd.
Established
October 10, 1936
Head OfficeKowa-Hitotsubashi Bldg., 7-1 KandaNishikicho 3-chome, Chiyoda-ku,
Tokyo, 101-0054 Japan(Registered Head Office:5253 Okiube, Ube City, Yamaguchi)
18,168 million yen
CapitalBusiness Fields [Glass Business] Architectural glass, automotive glass
and glass fiber[Chemicals Business] Applied chemicals, medi-chemicals,
electronic materials, energy materials
and fertilizers
Consolidated: 3,350 persons,
Employees
non-consolidated: 1,570 persons
Consolidated: 169.3 billion yen,
Net sales
non-consolidated: 95.4 billion yen

Listed Stock Exchange Tokyo Stock Exchange (Prime Market)
Total Number of
171,903,980 shares
Authorized Shares
Number of Shares
42,975,995 shares
Issued(including 18,164,057 treasury shares)
Number of
10,299 persons
Shareholders

●

(%)
100.0
13.9%

21.7%

22.7%

5.5%
1.3%

80.0

Production Bases, R&D Bases and Main Affiliate Companies
24.8%

Production Bases
Research Centers

R&D Bases[Chemicals Business]
Central Chemical Co., Ltd.
Central Glass Czech s.r.o. (Czech) Giga Gas & Electronic Materials
Company (Taiwan)
JCEL Co., Ltd. (South Korea) Zhejiang Central Glass Chemspec
Company Ltd. (China) Central Glass Trading (Shanghai) Co.,
Ltd. (China)
Tosho Central Co., Ltd.
Central Engineering Co., Ltd.

28.1%

60.0

Ube Plant
Kawasaki Plant
Fundamental Chemical Research Center
Applied Chemical Research Center
New-STEP Research Center
Electronic Materials Research Center
TaiwanShonan Research Center

Affiliate Companies [Glass Business]
Central Glass Products Co., Ltd.
Central Glass Sales Co., Ltd.
Central Glass Engineering Co., Ltd.
Central Glass Plant Services Co., Ltd.
Central Saint-Gobain Co., Ltd.
Mie Glass Industry Co., Ltd.
 Japan Tempered & Laminated GlassCo., Ltd.
Central Glass Fiber Co., Ltd.

26.0%

0.9%

1.2%

40.0
34.0%

31.0%
53.3%

20.0
17.6%
0.0
Ube Plant

2020

18.0%
2021

Foreign corporations, etc
Financial instruments firms
Individuals and others

●

(FY)

2022
Other corporations
Financial institutions

Principal Shareholders
Shareholder

Number of
Shares Held(thousandshares)Shareholding
Ratio (%)*

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

4,279

17.25

Custody Bank of Japan, Ltd.
(Trust Account)

1,557

6.28

Mizuho Trust & Banking Co., Ltd.
as trustee for Retirement Benefit
Trust of Mizuho Bank, Ltd.
(re-entrusted by Trust & Custody
Services Bank, Ltd.)
Custody Bank of Japan, Ltd.

1,228

4.95

DFA INTL SMALL CAPVALUE
PORTFOLIO

663

2.67

The Yamaguchi Bank, Ltd.

640

2.58

Custody Bank of Japan, Ltd.
(as trustee for Retirement Benefit
Trust of Sumitomo Mitsui Trust
Bank, Limited.)

629

2.54

CG Business Partner Shareholding
Association

520

2.10

CG Cooperation Company
Shareholding Association

517

2.09

The Master Trust Bank of Japan,
Ltd. (as trustee for Retirement
Benefit Trust of The Yamaguchi
Bank, Ltd.)

447

1.80

Nippon Life Insurance Company

386

1.56

* The shareholding ratio is calculated after deducting the number of treasury shares.

Stock Price Transition●D ividend and Dividend Payout Ratio
FY

Dividend(yen)

Dividend
Payout Ratio
(%)

2022

115

9.4

2021

75

-

2020

75

246.7

2019

75

47.3

2018

75

40.1

2017

30

40.8

4,000
3,500
3,000
Applied Chemical Research Center and New-STEP Research Center (Ube)

2,500
2,000
Unit: M
1M

2020/72021/12021/72022/12022/72023/1

Shonan Research Center (in Shonan Health Innovation Park)

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53