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In 2009, AGC Group implemented measures to strengthen itself for the future. Specifically, we focused our efforts on improving our productivity and yield and developing advanced technologies for new products. Moreover, we enhanced our business structure, for example, by establishing the Glass Company and the Electronics Company. Toward the end of 2009, the world economy gradually started to recover and our business also began making a change for the better. Nonetheless, the worldwide economic recession accelerated a change in the market structure, causing us to speed up countermeasures in order to make appropriate responses.

Contributing to a Sustainable Society by Accelerating Grow Beyond Measures

At the time we initially formulated our management policy Grow Beyond, we anticipated that climate change and resource problems would become more serious by 2030 and our market structure would change more dramatically with the growing importance of fast-growing markets. In fact, the market structure has been changing faster than expected. In order to respond to these significant changes, AGC Group needs to accelerate Grow Beyond measures. We also think it necessary for the Group to contribute to the creation of sustainable society, being aware of the necessity of a sustainable society not only from the viewpoints of climate change and resource problems but also from a more comprehensive global viewpoint. Based on this recognition, we have clearly defined our aspirations for 2020 as follows, and set them as major polices of AGC Group.

Building Foundations for Growth to Become a Truly Leading Global Enterprise

To achieve our aspirations for 2020, we will implement measures focusing on the following three points.

(1) Delivering technology solutions for climate change — We will give due consideration to the environment in all our business operations.

Although climate change is a serious issue that could threaten the business continuity of AGC Group, it also provides a great opportunity for us to contribute to society through our business. Recognizing our responsibility as a glass manufacturer belonging to an industry that consumes great volumes of energy, we earnestly strive to reduce energy consumption in our manufacturing processes. For example, we are developing technologies that will cut energy used in manufacturing by half. Achieving significant energy-savings reduces not only our environmental impact but also our costs. Moreover we are now developing materials and parts for photovoltaic devices which contribute to improving generating efficiency and highly energy-saving glass by taking advantage of our glass, chemical, and ceramics technologies. By promoting these products worldwide, we will deliver technology solutions for climate change.

(2) Glass-technology-driven company — We will meet new needs through our strong and differentiated technologies.

AGC Group will further differentiate our businesses by refining our core technologies. For example, we will advance our glass technology to produce highly value-added and energy-saving glass products. Moreover, by integrating our glass, chemical, and ceramics technologies in a more proactive manner, we will provide our customers with products of higher value.

(3) Second round of globalization — As a global company, we will also contribute to the growth of fast-growing regions.

AGC Group will further enhance businesses in developed regions including Japan, Europe and North America and will also expand operations in fast-growing regions. In addition to the areas where we have already established bases such as China, Russia, India, and Southeast Asia, we will take on the challenge of starting businesses in new countries and regions we have yet to penetrate and will contribute to the development of local communities through our business activities. In furthering our business in fast-growing regions, we will examine the use of global human resources and the establishment of a business model that differs from those used in developed areas.

Bringing Our people and Organization Together 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 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. 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 an organization-based growth spiral and a personal growth spiral, with each complementing one another to create a self-propelling cycle of development.

AGC Group believes that contributing to society through business operations is both a duty and a corporate social responsibility (CSR). We have also been conducting social contribution activities in order to reinforce the contributions made through our business operations. We established the “AGC Group Social Contribution Basic Policy” in February 2010 to clarify our stance on social contribution activities and further foster our social contribution activities. We conduct social contribution activities in three priority areas: “support for the next generation,” “harmony with local communities” and “natural environment conservation.” As for the first priority area, we think it really significant to develop human resources from a long-term view because human resources are the most important basis for society. The second and third priority areas are deeply related also to our business operations.
We will continue to listen and respond to the concerns and comments of our stakeholders, and 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, and toward the achievement of a sustainable society, we sincerely invite you to submit any comments and opinions you may have on this report or any aspect of AGC Group.