• 
• 
• 
• 
• 
• 
• 

Fiscal 2008 was a year of radical change. The AGC Group recorded its highest ever operating profit in the first half of this fiscal year, but saw decreases in both net sales and net income in the latter half due to the global economic recession. We are now facing economic difficulties, although in this we are not alone. In these trying circumstances, it is essential that we prepare ourselves to be ready to propel the Group forward when demand recovers. For example, we need to direct resources into the development of technologies that will contribute to prevent climate change, as well as into the development of global human resources.

Pursuing Growth while Meeting the Expectations of Society

In 2007, we established the AGC Group Charter of Corporate Behavior to implement the shared values contained in our Group vision, “Look Beyond”. As stated in the preface to the Charter, we must continue to fulfill our social responsibility and win even more trust from society if we wish to survive in the market. Accordingly, the AGC Group is committed to achieving its own growth while meeting the expectations of society by contributing to the solution of environmental problems and creating employment opportunities in regions where we establish new business.
Based on this idea, we formulated our new management policy, Grow Beyond. In this policy, we focus on “building foundations for growth” and on “the growth of individual employees and the entire Group under the slogan -Our People are Our Strength.”

Building Foundations for Growth to Become a Truly World-Class Global Enterprise

To build foundations for growth, the AGC Group will focus on the following three points while taking into account market changes over the medium- to long-term.

(1) Delivering technology solutions for climate change

Although climate change is a serious issue that could threaten the business continuity of the AGC Group, it also provides a great opportunity for us to contribute to society through our business. Glass manufacturing requires a lot of energy, and so we regard it as our duty to use it more efficiently. To this end we will make strenuous efforts. I am confident that we can contribute to prevent the climate change issue through our glass and chemical technologies. Specifically, we will focus on developing highly efficient materials for solar cells and producing and promoting energy-saving glass on a global scale.

(2) Glass technology-driven company - We will meet new needs through our core technology.

The AGC Group will continue to contribute to society by further refining its glass technology as its core technology. For example, we are developing a technology to halve energy consumption in glass manufacturing. Substantial improvements in productivity will in turn lead to a significant decrease in our environmental impact and costs. Also, by combining our glass and chemical technologies in a more proactive manner, we will provide our customers with products of higher value.

(3) Second round of globalization - We will make another leap forward as a global enterprise.

The AGC Group will enhance its global management, taking into account worldwide trends. We will launch our business in new countries and regions additional to Japan, Asia, Europe and North America, where we already have operations, and provide our customers all over the world with optimal products. To facilitate our acceptance on a global basis, I believe it is necessary for us to construct new business models that fit in with local cultures and customs, and to also give consideration to biodiversity, which is deemed to be as critical as the prevention of climate change.

Achieving the Growth of Individual Employees and the Entire Group under the Slogan of “Our People are Our Strength”

Our people both form our growth foundation and provide solutions for various challenges. Recognizing this, we will give sufficient growth opportunities to employees who have high motivation toward their own growth and are highly committed to meeting various challenges in their work. These include opportunities to take on more difficult challenges in a self-directed manner, which we believe will drive them to pursue further growth. The AGC Group has approximately 50,000 employees working in a range of countries and regions with different commercial customs and social practices. The diversity of our workforce gives the Group a great advantage, which we will use to transform ourselves into a world-class global enterprise in the truest sense-a robust group that meets expectations for its growth through both organizational growth spiral and personal growth spiral complementing each other to create a self-propelling cycle of development.

We will continue to listen and respond to the concerns and comments of our stakeholders, and to develop technologies and services to meet the needs of society in our effort to become a global corporate group that people around the world can count on and support in the knowledge that we are committed to steadily achieving the best possible results. To this end, we sincerely invite you to submit any comments and opinions you may have on this report or any aspect of the AGC Group.