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Message from the President

Contributing to the Achievement of SDGs as Part of Risk Management

Natural disasters that affected many parts of Japan in 2018, such as torrential rain and landslides, were a threat to our business as well. For example, disruption in logistics and temporary suspension of the sales of our customers' products affected the demand for our products. This shows how climate change due to global warming can be a significant risk for business overall, even if our own facilities and equipment are not directly damaged. To maintain their business activities toward the future and continue to grow, all companies need to make a concerted effort to prevent global warming. An example is initiatives to reduce CO2.

The Japanese government has presented a numerical target of reducing CO2 emissions by 26% below the fiscal 2013 level by fiscal 2030. Our company has set a voluntary target to reduce them by 30% below the fiscal 2013 level by fiscal 2030 and plans to invest in necessary equipment. What is important here is to both reduce CO2 and increase productivity. Comprehensive energy saving not only reduces CO2 emissions but also reins in manufacturing costs. We will make efforts to reduce CO2 emissions during transportation, in addition to the emissions by our company itself.

Environmental problems concerning plastic waste have been attracting attention in recent years. To prevent an enormous amount of plastic waste from flooding into the ocean and protect the ecosystem, there is a global trend toward plastic-free living. For our company, which manufactures and sells adhesive films, this is a risk that threatens existing businesses. By taking advantage of new technologies, such as biodegradable films, we have been speeding up our work to develop alternative products.

To identify and respond to all risks concerning our business and corporate management, the Corporate Risk Management Committee was established in April 2018. The Committee consists of executive general managers and general managers of offices under the direct control of the president. At the moment, it is addressing the issues raised in the group-wide risk survey put to managers.

Risks are not limited to external factors, such as climate change and disasters. To maintain the soundness of management, the Corporate Governance Committee was established in December 2018. The Committee provides advice and makes suggestions to the Board of Directors on remuneration of corporate officers as well as on appointment and dismissal of directors, with the aim of improving the objectivity and transparency of corporate governance.

Through such initiatives we intend to enhance risk management as well as identify opportunities, which is the flip side of risks.

The SDGs Committee's discussions for addressing social issues through our core business

A building with window films that block solar heat

Cooperating with the community through mangrove planting

Aiming at Further Growth with CSR Activities Based on "Sincerity and Creativity"

To fulfill our responsibility as a global company, we engage in community-based CSR activities at sites of overseas group companies. Mangrove planting in Indonesia, carried out in cooperation with people in the local community, is one such initiative. It aims not only to conserve the rich ecosystem through tree planting but also to promote coexistence with local communities. Various CSR activities in and outside Japan are opportunities to practice the company motto, "Sincerity and Creativity".

All employees will continue to bear "Sincerity and Creativity" in mind, and we will drive forward group-wide CSR activities informed by the SDGs to achieve further growth.

To communicate our CSR activities broadly to the public and all employees, this report clearly summarizes the results of our CSR activities during fiscal 2018.

We would appreciate the continued support and guidance of all our stakeholders.