Masahiro Kadomatsu, President CEO

■ Celebrating Our 100th Anniversary

For a company to maintain sustainable development as a going concern, it is essential to have the continuous trust of society.
On September 8 this year, Asahi Glass Co., Ltd. (AGC) will celebrate its 100th anniversary. Over the past century, the business environment has greatly changed, and we have faced our share of obstacles and crises. Nevertheless, we have overcome all challenges to build the AGC Group of today. I would like to express my gratitude and respect to all former employees for their sincere commitment toward meeting the demands and expectations of society. They boldly took on challenges and embodied the spirit of the company's founder: “Never take the easy way out-address the difficulties.” Furthermore, I would like to thank all our stakeholders, including our customers and shareholders, for the kind support and patronage they have extended to us over the years.

■ Taking on the Task of Realizing the Group Vision

Companies today are required to fulfill a broader range of responsibilities than ever before, in line with the steady maturing and globalization of society and changes in social values. In 2002, AGC Group formulated its group vision “Look Beyond.” Under this vision, we made a commitment to “look beyond and make the world a brighter place” as Our Mission, and established the four shared values (Our Shared Values) of Innovation & Operational Excellence, Diversity, Environment, and Integrity, as the basic behavioral norm to be shared by all employees of AGC Group.
Concurrently with my inauguration as President and CEO of AGC in April 2004, I initiated a new management policy, namely “JIKKO”-Execution for Excellence, to encourage the permeation of our four shared values throughout the Group. In January 2005, we announced our medium-term management plan, “JIKKO-2007,” as a specific action plan for “JIKKO.” Since then, we have been steadily implementing our plans,with this fiscal year marking the final year of “JIKKO-2007”.

■ as a Right and Respectable Vision for All Times

As mentioned in our previous CSR reports, our four shared values merely represent the competency an enterprise needs in order to fulfill its basic responsibilities, and to meet the diverse demands and expectations of modern society. I am proud to note that our “Look Beyond” vision represented a relatively advanced corporate vision at the time of its conception, and this vision has driven us forward to realize great achievements under “JIKKO-2007.”
AGC Group is a global enterprise operating in 23 countries, with over 54,000 employees. In order for us to sustain our business operations in these varied countries with their diverse cultures and customs, we must maintain the balance between economical, social, and environmental aspects of our management, while providing desired and valued products.
All employees of AGC Group have been sharing and fostering our four shared values in their daily operations, with a view to meet the expectations of all stakeholders. In so doing, we have been collectively striving to fulfill our group's mission of “making the world a brighter place.” For details of the progress and results of these efforts, please refer to the featured articles contained in this report. It is noteworthy that our many achievements include the development of glass substrates for Flat Panel Displays (FPD) produced without the use of arsenic or antimony, which I believe represents a worldclass advance and contribution in terms of environmental protection.

■ Towards the Next 100 Years

Companies today are required to contribute to the creation of a fair and sustainable society as part of their corporate social responsibility (CSR). Specifically, they are expected to actively protect the environment on a global scale (including working towards the targets specified in the Kyoto Protocol aimed at preventing global warming), and to protect human rights. For instance, the United Nations Global Compact, which was launched in 2000 and was revised in 2004, represents an initiative aimed at encouraging companies to fulfill their responsibilities.
As my mission, I am determined to build a firm foundation to enable our group to achieve sustainable growth and development over the next 100 years following this centenary year. The four values that all our employees strive to share have been confirmed to incorporate almost all the elements of what society demands in terms of CSR, and I believe these shared values to be appropriate and highly regarded. With the progress of globalization, we have recognized the extreme importance of organically combining these values in order to meet the demands and expectations of society.
For the AGC Group to remain a corporate group that is trusted by society and is welcomed to continue to grow and develop over the next 100 years, I must ensure, in my capacity as President and CEO, that the company contributes to a better global environment and society, while generating profit and continuing to grow as an enterprise. We will focus our efforts to achieve both of these objectives, which, I believe, will enable us to fulfill Our Mission, to “look beyond and make the world a brighter place.”

■ Declaring Management Responsibility towards a Sustainable Society
Establishment of the AGC Group Charter of Corporate Behavior

Based on the aforementioned recognition, I have come to the conclusion that the management of AGC should declare its responsibilities and policies regarding a sustainable society. Accordingly, we have formulated the AGC Group Charter of Corporate Behavior, as shown on the next page. The Charter will serve as a set of guidelines for all employees to follow, to correctly pursue “Look Beyond.”
This year, the AGC Group will formulate a new mediumterm management plan to be launched in 2008 as the first step in our plans for the next 100 years. Furthermore, we shall carefully consider what we need to achieve vis-á-vis society, and incorporate the necessary activities into our new management plan.
I believe that the Charter will clarify how we can contribute to the fulfillment of CSR by pursuing our vision of “Look Beyond,” within which management and employees will build on our shared values and principles. This in turn will increase employees' commitment to “Look Beyond.” If all employees of AGC Group pursue “Look Beyond,” as a kind of “common DNA” of the Group, it will provide a foundation for achieving the socially responsible management described in the AGC Group Charter of Corporate Behavior.
In addition, I regard social responsibility, as described in the AGC Group Charter of Corporate Behavior, not as a passive responsibility, but as an exceptional opportunity for an enterprise to progress along with society and to continue to transform itself into a worthier entity. In my view, CSR does not merely stand for corporate social responsibility; it should be evolved into “corporate social reliability.” I endeavor to build a foundation for AGC to maintain its status as a company that has the trust of society, and one that is welcomed to further grow and develop in the future.
For example, with regard to our environmental measures, we will add a new “R” to our existing 3Rs of Reduce, Reuse, and Recycle: namely Replace (to replace hazardous substances by developing alternatives), thus creating the “4Rs” of environmental activity. We will also endeavor to develop new businesses and create new products that can substantially contribute to society.

■ Further Uniting the Group through Brand and Logo Unification

As a means of ensuring that all employees of AGC Group share and implement the “Look Beyond” vision and the AGC Group Charter of Corporate Behavior uniformly and globally, we have decided to renew and unify all the Group companies' brands and logos worldwide. With the new unified AGC Group brand and logo, I will continue to encourage all employees to reinforce the four shared values, and to conduct the Plan-Do-Check-Act (PDCA) cycle in a practical and proactive manner.
I promise all our stakeholders that I shall manage our business in such a way as to ensure that the Group continues to be a highly profitable, fast-growing, and outstanding global enterprise that is trusted by society, and contributes to make the world a brighter place through the fulfillment of its social responsibility.

■ To Readers of this Report

AGC Group has been publishing its CSR report since 2005, introducing its activities conducted based on the concepts shown above. While the content may not be sufficient to meet the ever changing and expanding expectations of society, we believe that the CSR report will improve our socially responsible management through dialogue with stakeholders.
With this report, we are pleased to provide a reference material for you to evaluate AGC Group's activities. We are aiming to further expand and develop our enterprise, while continuing to win societal trust. We look forward to receiving your honest opinions regarding this report.

■ Progress on the Medium-Term Management Plan “JIKKO-2007”