AICA KOGYO COMPANY, LIMITED Corporate Principle
Challenge and Creation
Corporate philosophy
rough a philosophy of symbiosis, the AICA Group will create new value and contribute to society through endless innovation.
Corporate Policy
1 | Chemistry and design |
We create unique products through the power of chemistry and design, and contribute to the | |
realization of a prosperous society. | |
2 | Group synergy |
We create group synergy with the continuous collaboration of the technologies / materials. | |
3 | No.1 |
We expand the top-share products we have in our business fields and regions. | |
4 | Global |
We enhance our production/sales bases and human resources overseas, and aim for sustainable | |
growth in the global market. | |
5 | Human resources and organizations |
Human resources are the most valuable resource to the company. We build vibrant human | |
resources as well as organizations through mutual understanding and growth. | |
6 | Compliance management |
We promote fairness and transparency by complying with the laws and the regulations and the | |
social order. | |
7 | |
Commitment to safety and security | |
We emphasize on engagement with stakeholders, and pursue "environmentally-friendly business | |
activities" and "securing quality that can be trusted". |
INDEX
■ About AICA
03 Financial and Non-Financial
Highlights
05 Message from the President
09 Virtuous Circle Model and Core
Competences
11 Transformation of Value
Creation
13 Genealogy of the Power of
Chemistry
15 Our Businesses
17 Group Network
■ AICA's Vision
19 Progress of AICA's 10 Years
Vision and Medium-Term Business Plan
21 Medium-Term Business Plan
Growth drivers for the creation of new value
25 Business Overview: Chemical
Products Business
27 Business Overview:
Construction Materials Business
■ Fundamentals of AICA
29 AICA's CSR Activities
31 AICA Group's Materialities
33 Business Infrastructure
43 Human resources
49 Environment
55 Engagement with Stakeholders
60
Third-Party Opinion
Company Overview (as of March 31, 2020)
Company Name
Headquarters Location
Date Established Representative
Capital Employees
Editorial Policy
AICA Kogyo Co., Ltd.
JP Tower Nagoya, 26F, 1-1-1 Meieki, Nakamura-ku, Nagoya, Aichi, 450-6326, Japan
October 20, 1936
Yuji Ono, Representative Director and President 9,891 million yen
Consolidated: 4,781 Non-consolidated: 1,239
This report has been prepared with the intention of communicating the AICA Group's CSR-related activities to our stakeholders (customers, shareholders, suppliers, local communities, and employees) in easily understood ways, using graphs, photographs, and other means.
Reference Guidelines
● ISO26000
● Environmental Reporting Guidelines (2018 Edition), Ministry of Environment
● GRI Standards
Target Period/Scope
This report is a summary of the activities of the AICA Group in FY2019. It also includes information about some activities from FY2020. The target scopes can be found in the content of the report.
AICA's CSR Communication
AICA Group
CSR Report (Booklet/PDF) (Japanese/English/ Chinese)
Annual report of the CSR activities of the AICA Group.
AICA Website
Supplementary information and PDF data of the CSR Report
http://www.aica.co.jp/company/environ/
Contact for inquiries about this report
● Corporate Planning Department Tel: 052-533-3136
● Safety and Environment Department Tel: 052-443-5941
Financial and Non-Financial Highlights
Financial and Non-Financial Highlights
About AICA
Net sales / Operating profit / Ordinary profit
Profit attributable to owners of parent / ROE / ROA
(×100 million yen)
(×100 million yen)
(×100 million yen)
(%)
(FY)
2015 2016
Sales Revenue (left axis)Ordinary pro t (right axis)
2017 2018
Operating pro t (right axis)
Overseas sales / Overseas sales ratio
200
150
2019 (FY)
2015 2016 2017
Pro t attributable to owners of parent (left axis)ROE (right axis)ROA (right axis)
2018
Total assets / Net assets / Equity rate
12.0
9.0
2019
(×100 million yen)
(%)
(×100 million yen)
(%)
2019 (FY)
1,200
50.0
2015 2016
Overseas sales revenue (left axis)
2017 2018 2019 (FY)
Ratio of overseas sales (right axis)
2015 2016 2017
Total assets (left axis)Net assets (left axis)Capital adequacy ratio (right axis)
2018
Net assets per share / Net income per share
Dividend / Payout ratio
(yen)
(yen)
(yen)
(%)
2019 (FY)
2015 2016
Net assets per share (left axis)
2017 2018 2019 (FY)
Net income* per share (right axis)
150
60.0
54.4%
2015
2016
2017
Dividend (left axis)Payout ratio (right axis)
2018
Cash flow from operating activities
(×100 million yen)
200
150
100
50
0
183
Capital investments / Depreciation / R&D expenditure
(×100 million yen)
100
182
2019 (FY)
80
78.9
60
40
20
0
2015
2016
2017
2018
2015
2016
2017
2018
2019 (FY)
Capital spending
DepreciationR&D Expenditure
(TJ: Terajoules)
Energy input
2,000
1,500
1,000
500
0
2019 (FY)
2015 2016 2017 2018
Production sites in JapanOverseas production sites ① Newly consolidated in FY2015 ② Newly consolidated in FY2016 ③ Newly consolidated in FY2018 ④ Newly consolidated in FY2019
Water consumption
1,829
1,818
(1,000 m³)
3,000
2,514
2019 (FY)
2015 2016 2017 2018
Production sites in JapanOverseas production sites ① Newly consolidated in FY2015 ② Newly consolidated in FY2016 ③ Newly consolidated in FY2018 ④ Newly consolidated in FY2019
Number of industrial accidents
(accidents) *Total industrial accidents = non-lost-time accidents + lost-time accidents 25
20
15
20
10
5
0
2019 (FY)
Total number of industrial accidentsLost-time accidents
Target scope: All AICA Group production sites in Japan ① Newly consolidated in FY2015 ② Newly consolidated in FY2016
Average days paid leave taken / Average rate of paid leave taken
(days)
66.7%
12
9
7.5
(%)
60.0
40.0
8.2
6
20.0
3
0 0 2015 2016 2017 2018 2019 (FY)
Average number of days paid leave taken (left axis)Average rate of paid leave taken (right axis)
Target periods: Until FY2017: September 16 of previous scal year to September 15 of current scal year From FY2018: March 16 of previous scal year to March 15 of current scal year
Target employees: Employees of Aica Kogyo Co., Ltd., excluding people on temporary assignment, child-care leave, and leave-of-absence, and part-time and casual workers
Greenhouse gas emissions
(t-CO2)
100,000
88,137
2015 2016 2017 2018
Production sites in JapanOverseas production sites ① Newly consolidated in FY2015 ② Newly consolidated in FY2016 ③ Newly consolidated in FY2018 ④ Newly consolidated in FY2019
Industrial waste emission volumes
(metric ton)
60,000
85,942
2019 (FY)
53,322
40,000
20,000
0
2019 (FY)
2015 2016 2017 2018
Production sites in JapanOverseas production sites ① Newly consolidated in FY2015 ② Newly consolidated in FY2016 ③ Newly consolidated in FY2018 ④ Newly consolidated in FY2019
Industrial accident frequency rate/Severity rate
*Frequency rate = Number of fatalities and injuries caused by industrial accidents
3.00 2.50 2.00 1.50 1.00 0.50
(excluding non-lost time accidents) x 1,000,000 ÷ Total work hours *Severity rate = Work-days lost × 1,000 ÷ Total work hours
Both sets of gures are for permanent employees
1.73
0
2015 2016
2017 2018
Industrial accident frequency rateIndustrial accident severity rateIndustrial accident frequency rate National manufacturing industry average
Target scope: All AICA Group production sites in Japan
Headcount (Japan / Overseas)
(people)
5,000
4,000
0
3,000
2,000
1,000
4,781
2019 (FY)
2015 2016
Group companies in Japan
Overseas Group companies
2017 2018
About AICA
Message from the President
Consolidated business results for the year ended March 2020 were net sales of 191,501 million yen (+ 0.1% year-on-year), operating profit of 20,850 million yen (+ 0.1 %), ordinary profit of 21,333 million yen (+ 0.4%), and profit attributable to owners of parent of 12,732 million yen (- 4.4%). Net sales, op-erating profit, and ordinary profit were the highest on record for the eighth consecutive year.
1 Looking Back on the Year Ended
March 2020
The domestic construction market environment, which is one of our major fields was sluggish in both the residential and non-residential segments. However, our AS (Aica Solution) product range, designed to contribute to solve social problems, performed well than expected despite the market environment.
Due to low raw material prices in our existing overseas businesses, there was decrease in net sales while there was increase in profits. We also fulfilled five M&A projects and en-hanced our business foundations.
2 The Impact of the COVID-19 pandemic and Our measurements*1
*1. Based on the situation as of the end of June, 2020
■ Impact on Plants and Raw Materials Procurement
Due to the spread of the COVID-19, some of our overseas locations temporarily suspended its operations. All plants have now resumed its operation. In raw materials procurement, BCP measures proved effective and there was no major im-pact. We fulfilled our supply responsibilities to our customers.
■ Strengthening of BCP and Promotion of Work Style
Reform
Experiencing the global pandemic of the COVID-19 has brought a number of issues in our raw materials procurement and operation systems. We take measures to ensure that we are able to secure raw materials under any circumstances by having multiple suppliers, we will decentralize in different
CSR is our management axis: we strive to be a corporate entity the society needs. We continue to develop sustainably.
Yuji Ono
Representative Director and President
countries and regions. We will also decentralize and multiply our production sites to optimize our structure for fulfilling our responsibilities as a supplier.
Furthermore, answering to the government call, we quickly introduced remote work for some sites in Japan and overseas. In Japan, we discontinued remote work after the government lifted the state of emergency. We have set up structures to respond flexibly, depending on the circumstances. At our pro-duction sites where the remote work is not possible, we have enforced even more stringent measures.
■ Product proposals for new lifestyles
This year, the world underwent a complete transformation and social norms have changed toward the co-existence with the virus. Under these circumstances, our antiviral construction material range, Virutect (Visus Protect) Series, launched lastto business solution. We shall continue to identify new needs promptly and expand our product range that could contribute to society.
3 To Achieve AICA's 10 Years Vision (→P19)
Our Medium-Term Business Plan "C&C 2000" (→P20) is in its final year this fiscal year. Unfortunately, due to the COVID-19 pandemic, some of our financial targets would most likely to be unachieved. However, we shall continue to implement the various measures described below, in line with the policy set in C&C 2000 towards the sustainable growth. We identify what we need to do now for the AICA's 10 Years Vision and shall invest appropriately to R&D and equipment.
year, is being incorporated into this new lifestyle. As explained | ■ | AS Product, Virutect Series antiviral construction materials |
in the AICA Virtuous Circle Model (→P9), we have listened to | We have designated products that help to solve a variety of | |
all our stakeholders and developed products that contribute |
social problems as AS (Aica Solution) products and focusing
About AICA
Message from the President
About AICA
our efforts on their development and sales expansion. Inquiries about the range of antiviral construction materials, Virutect Series, which we launched last year, have increased sharply. It has begun with the launch of the high pressure laminates (HPL), AICA Virutect. It then expanded to CERARL for walls and Postform Counter, the U.D. COMFORT door for medi-cal and nursing homes and toilet booth. It has now been in-troduced to various settings, including medical and nursing homes, childcare centres, educational institutions, shops and restaurants, offices, factories, and housing.
We are striving to grow Virutect Series sales to 5 billion yen in three years' time. to achieve this goal, we would need to capture all the possible needs by applying the antiviral properties to various products, for floorings, walls, furnitures and building material applications both in the residential and non-residential markets.
■ Strengthening Specialty & Performance Materials being responsible for the Next Generation
The focus of our efforts to build a stronger corporate con-stitution through business diversification is the Specialty & Performance Materials business. We are pursuing the ex-pansion of product and sales increase of products for the non-construction sector, such as automobiles, electronic devices, hygiene products and clothing. Evermore Chemical Industry Co., Ltd. (EMC) joined the AICA Group in January 2018. They acquired a urethane manufacturer in Vietnam in July 2020 and has expanded further. EMC holds a large share in the global market for polyurethane systems (PUS) for trainers' soles. They also have advantages in the fields where AICA has never explored, such as textiles for clothing and cross-linking agents for food packaging. We shall continue to leverage EMC's advanced resin design technologies and gain shares in new markets and fields.
■ Strengthening of overseas business
In December 2019, four Wilsonart companies in the Asia/ Oceania region joined AICA Group. Wilsonart is an US-based global manufacturer of high pressure laminates (HPL). In March 2020, AICA HPL Trading joint stock company that took over the CHI Group, a Vietnam-based HPL sales companys' business joined AICA Group. With such acquisitions, AICA Group's construction materials business platform in the Asia/ Oceania region was streamlined enormously.
Through aggressive M&A activities, our overseas business obtained production sites, sales networks and bench strength. Our business has become even more resilient with the en-hancement of various skills and knowledge. We will strive to optimize our sales strategies by making the most of our Chemical Products and Construction Materials Businesses.
CSR-oriented Management, Balancing Economic and Social Values
AICA is a company that operates business globally. And, we strongly believe that it is our duty to address the social problems in the world sincerely and conduct corporate activi-ties to solve those problems. We are dedicating to deepening our activities and strengthening our corporate structures. As such, we enable to be united as a group to confront towards social agendas, including the Sustainable Development Goals (SDGs).
■ Strengthening of Frameworks for Promotion of CSR
From the perspective of strengthening the supervisory func-tion of the Board of Directors over the CSR Committee, which leads AICA's CSR initiatives, CSR Committee would now report to the Board Meeting instead of the Management Meeting. To strengthen CSR collaboration with our overseas Group com-panies, AICA Asia Pacific Holding Pte. Ltd. welcomed a Senior Manager, Sustainability & Operation Excellence. We launched the Climate Change Response Project in April 2020 in order to strengthen support to climate change issues. Working to-gether with the development and production divisions as well as the administrative divisions, this project will consider and
About AICA
implement measures aimed at drastic improvements in our environmental indicators. In May 2020, we expressed our
Frameworks for Promotion of CSR Since April 2020
Chairperson:
Satoshi Toudou, Director and Senior Managing Executive Officer
Vice Chairperson: Ryoji Mori, Director and Managing Executive OfficerSecretariat: MembersCorporate Planning Department
Corporate Planning Division, Purchasing Division, Human Resources Division, Quality Assurance Division, General Affairs Division, Legal Division,
Safety and Environment Division,
Sales Administration Division, Overseas Planning Division, Research and Development Division,
AAPH* Sustainability Division
countenance to the TCFD. We intend to pursue the appropri-ate information disclosure related to climate change.
Coordination
...Changes in Frameworks
Various Committees and Projects
・Corporate Ethics Committee ・Internal Control Committee ・Information Management Committee ・Business Continuity Plan (BCP) Committee ・Overseas Group Governance Committee ・C&C Promotion Committee
・QEO Committee
・Security and Trade Control Committee ・Climate Change Response Project ・Work Style Reform Promotion Project ・Diversity Promotion Project Etc.
*AICA Asia Pacific Holding Pte. Ltd.
■ Strengthening of Corporate Governance
In June 2020, we transitioned to a Company with Audit and Supervisory Committee with the objective of improving the transparency of our management. The Audit and Supervisory Committee consists of more than half of external directors, is responsible for auditing and supervising the legality and ap-propriateness of the execution of business. As such, we are able to enforce our corporate governance further and also to
build a framework that would meet our stakeholders' expecta-tions in Japan and overseas.
We also launched an Overseas Planning Department and an Overseas Group Governance Committee with the objective of strengthening governance in our overseas Group companies. Given the current situation, with the sharp rise in overseas Group companies through M&As in recent years, we have set these divisions up to strengthen structures.
Diagram of Transition to a Company with Audit and Supervisory Committee
● Company with Board of Auditors
About AICA
● Company with Audit and Supervisory Committee
(from June 23, 2020)
■ To realize a corporation that develops sustainably
Our corporate philosophy includes the word, "Symbiosis". We are responsible to all our stakeholders. In fact, we have been ensuring for business activities and product develop-ment that are environment and human beings-conscious. Recognizing that AICA's ideology has much in common withthe one that the United Nations Global Compact (UNGC) has, we announced our participation in UNGC in 2019. We aim to realize a corporation that is needed by society and that grows sustainably, holding CSR at the core of its management.
Virtuous Circle Model and Core Competences
About AICA
Virtuous Circle Model Concept
Through engagement with our stakeholders, the AICA Group identifies social issues and acknowledges them as risks, as well as turning them into business opportunities. We will achieve social contribution and sustainable business growth by developing and expanding sales of our AS (Aica Solution) products that solve social issues.
Virtuous Circle Model to Balance Financial and Non-financial Matters
■ Global warming
■ Depletion of natural resources
■ Labor shortages/diversity
Leveraging
■ Sustainable growth of net sales and pro t
■ ROE 10% or more
■ Building of risk-resistant portfolio
■ Healthy nancial base
The AICA Group and the SDGs
As a company that operates business on a global scale, by signing the UN Global Compact, the AICA group has committed to working toward the Sustainable Development Goals (SDGs) and has commenced various activities to achieve them. We reviewed our materialities in FY2018, and sorted out the relevance between the issues in the materialities and the SDGs, clarifying anew the important business activities that the AICA Group should undertake to tackle global social issues.
We will tackle social issues through various corporate activities hand in hand with the stakeholders and contribute to the sustainable society.
3 Core Competences to Accelerate the Virtuous Circle Model
The AICA Group has attained the top market share in specific sectors. We continue to provide products that are essential to the world. We have three unique strengths. We are a chemical company but operates in the design domain, proposing finely detailed solutions with its global network.
About AICA
We provide highly original products with our proprietary technologies.
The chemical technologies we have cultivated since company's establishment, have been the foundation of our business. Having resin synthesis technology as
Chemical technologies
our core technology for various adhesive products, we enable to develop innovative products by applying such technologies to the construction materials and Specialty & Performance Materials. We strive to solve social issues with the power of chemistry and enrich our lives.
We create new value with the power of design.
Design
Sending products out into the world that incorporate the latest trends, centering on our high pressure lami-nates (HPL) that have the top share in Japanese mar-ket, we have established a firm position as a building materials manufacturer that adorns spaces.
As well as proposing the beauty of colors and pat-terns, we take social issues that we have identified through communication with our stakeholders and design easy-to-use shapes, safe structures, and inno-vations that lead to health and security. We create new value with the power of design and build a pleasant future in which anyone can live comfortably.
We have developed frameworks that enable meticulous response.
Sales Network
We have developed sales networks to deliver our products to our customers promptly. In Japan, as well as locating sales offices in various parts of the country, we have formed the AICA Distributors' Organization, an association of distributors with a wealth of specialist knowledge about our products.
Overseas, predominantly in the Asian region, weare using M&As to expand our overseas sales network. We have established separate holding companies overseas for the Chemical Products and Construction Materials Businesses. Through this, we are identifying local needs that are rooted in the local regions and pur-suing the localization of our businesses overseas.
Transformation of Value Creation
About AICA
With the resin synthesis technologies that we have cultivated since our foundation at the core, we have re-organized our portfolio of businesses flexibly in line with the times. Our spirit of challenge and creation, including challenges in new businesses and the use of synergies, has been passed down from the past to the present.
1950/11
Established 1936
1940/11
1960/11
1970/11
1936~1945
▶Launched Japan's first urea-based resin adhesive, "AICHI-MUTEKI-NORI" (1939)
1946~1954
▶Launched melamine resin-baked paint (1951)
Social Background and Products Created by the AICA Group
1955~1966
▶Launched "AICA" high pressure laminate (HPL) (1960)
1967~1976
▶Launched "AICA POSTFORM"
(1968)
▶Launched wall coating material
"JOLYPATE" (1975)
1936
1960s-1970s
Late 1980s
Development of Japan's first synthetic resin adhesive
Contribution to development of odorless plywood
Use of rubber trees that had been discarded as scrap
We developed a urea-based resin adhesive with strong adhesive properties and water resistance. This drove the shift from natural adhesives to high-performance synthetic resin adhesives.
To increase productivity of plywood in response to expanding demand, we developed a no-clamp melamine urea formaldehyde resin adhesive. We encouraged increased use of this adhesive, which has low formal-dehyde detection, and odorless ply-woods were born.
Rubber tree wood left over from the sap extraction process was recycled into laminated lumber and turned into stair components and counters. This attracted attention as a pioneering concept in the effective use of forest resources.
Patent for urea-based resin adhesiveWe were awarded an honor from the Sultan of the Malaysian state of Kedah.
Uses M&UAssestoMb&uAilds atopblautiflodramptlhaatftowrmoutlhdant owtobueld not be swayed sbwy aJyaepdanbeysJeacpoansetsruecctoionnstmruacrtkieotntmreanrdkset trends
OperatingOppreoratt(inxg10p0romtil(lxio1n0y0enm) illion yen)
Number oNf unmewbehrooufsninegwshtaoruts i(nxg10s,t0a0rt0s (uxn1it0s,)000 units)
Area of prAivraetae-osfepcrtiovar tneo-sne-rcetsoirdnenotnia-rlesidential
2021/3 2021/3
IncorporIantceosrpnonra-tresindoen-tiraelsmidaernkteiatlamndarakceht iaenvdesachieves
MaterialsMaterials growth dgersopwiteh detsepritoeradteintegrmioraartkientgemnvairrkoentmeennvtironment
ConstrucCtionstruction
2 building sbtauritlsdi(nmgilsliotanrtms (m) illion m2)
1980/111980/11
1990/3 1990/3
2000/3 2000/3
2010/3 2010/3
*2 Covers onl*y2foCuorvmerosnothnslydfouuertmo othnethcshdanugeetoinththeecehnadngoef tinhethenaencdiaolfytehaer. naNnBc:iaCl yoenasro. lidNatBed: Caocncsooulnidtiantgedbeagcacnoufrnotmingthbe gyeaanrfreonmdetdheNyoevaermebnedre1d9N7o9v.eAmll baecrco1u9n7t9in.gAlyleaacrcsopurniotirntgoytehartsaprerionrotno-cthoantsaorliedantoend-.consolidated.
1977~1986
▶Launched premium wooden door
"EASTERN CHERRY DOOR" (1978) ▶Launched high pressure laminate
(HPL) "AICA COLOR SYSTEM 105"
(1984)
1987~1994
▶Captured top share of Japanese
HPL market
▶Launched melamine noncombustible decorative panel "CERARL" (1989)
1995~2009
▶"CERARL" becomes a huge success as kitchen panel (1996 -) ▶Inaugural edition of "Environmental
Report" (1999)
2010~
▶Acquired shares in subsidiary of
Dynea's Asia-Pacific division (2012) ▶Acquired shares in Evermore Chemical
Industries (2018)
▶Acquired shares in Wilsonart subsidiary in Asia-Pacific region (2019)
About AICA
400
360
320
280
240
200
160
120
80
40
1990s-2000s
2010
2017-
Compliant to sick house syndrome
Support forest resources protection
From the 1990s, hypersensitivity to chemical substances, as exem-plified by sick house syndrome, became a serious social problem. In response to the Revised Building Standards Act of 2003 and the Ministry of Health, Labor and Welfare guidelines of 2002, we launched AICA ECO-ECO BOND, a healthy-housing adhesive that contained no restricted substances such as formaldehyde, toluene, and xylene.
We were the first Japanese manufacturer of high pres-sure laminates (HPL) to obtain Forest Sustainability Council (FSC/PEFC) certification for certain of our HPL products. Subsequently, we were awarded the Biomass mark for those same products and for some of our decorative board products.
Development and expansion sales of AS products
AICA ECO-ECO BOND when it was first released
We positioned product ranges that contribute to the solution of social issues as AS (Aica Solution) products and concentrated our efforts into developing and ex-panding sales of those product ranges. The objectives of those products are many and diverse, including alleviating labor short-ages, reducing waste, and build-ing safe cities.
High Pressure Laminate (HPL)
Polyester Decorative
Marless Board
Panels
Genealogy of the Power of Chemistry
The chemical technologies we have attained since the company's foundation are AICA's core technologies and an important pillar in creating highly original products. Our history began with the development of adhesives. Then, it has been passed onto the respective businesses that have branched out from those beginnings, and continues to evolve today.
About AICA
MUTEKI-
AICHI-
NORI
Started from "resin paper" born of synergy between the adhesive business and paper manufacturing business. This is our current core products.
CERARL became a major success. We developed dedicated adhesives to curb warpage peculiar to CERARL, through collaboration with Chemical Products Business.
About AICA
Our Businesses
About AICA
Chemical Products Business
Infrastructure business fostering core technologies
Since having developed the very first urea resin adhesive in Japan in 1936, we have been developing products that lead its generation with our chemical synthetic technology.
Since 2000, we have been focusing on expanding functional material products as our new business field and being versatile.
Business domains
billion yen
Automobiles
Wood processingArchitectural
Civil works
Electronic materials
Industrial products
Main Products
Adhesives
Construction resins
Industrial and
Architectual adhesives
Adhesives used in the manufacture of wooden furniture products and building materials and on construction sites.
Wall coating materials
(JOLYPATE)
Acrylic-based architectural coating used on interior and exterior walls in housing, shops, public facilities, etc.
Residential
Non-residential
Specialty & Performance Materials
Hot melts
Adhesives and sealants used in automotive headlamps and photovoltaic panels due to their superior waterproof properties.
Household goods
Industrial resins
Two businesses that realize
Resins used as a raw material in plywood and laminated lumber, abrasives, casting molds, adhesives, and other industrial products.
Floor coating materials
(JOLYACE)
Synthetic resin floor coating materials used on areas that require high durability and heat resistance, such as factories and warehouses.
Residential
Non-residential
UV-curable resins
Instant-curing resins used in electronic products such as smartphones and PCs, building materials, etc.
Composite board resins
Resins used to form boards made by binding together wooden materials that have been turned into chips or fibers.
Repair/reinforcing materials, corrosion preventive materials (Dynamic Resin)
Resin products including repair materials for concrete structures, materials to prevent falling tiles.
Residential
Non-residential
Polymer beads
Highly refined bead-shaped resin products used as ingredients in cosmetic products, light diffusers, and modifying agents.
We develop innovative products making use of our chemical technolo-gy fostered in the chemical products business. We enable to offer myri-ad products including high pressured laminates (HPL) as a key product which has the largest share in Japan. We add beauty to the architectur-al spaces with wide variations.
Construction Materials Business
Provide innovative products by applying chemical technology
Business domains
High pressure laminates (HPL) (CELSUS, FLARETECT)
With their abundant range of colors and patterns and their superior durability, these are used as surface for tables and furniture used in shops, hospitals, offices. We hold a more-than-70% share of the Japanese market for these products.
Boards, films, etc. (AICA POLY, Altyno)
Residential
Non-residential
Main Products
Decorative boards, which are plywood with a decorative surface created with polyester resin, etc., are used predominantly for furniture and wall surfaces. Architectural films are used mainly on wall surfaces and for fittings.
About AICA
Residential
Non-residential
Melamine noncombustible decorative panels (CERARL)
Counter tops (Postform, Artificial marble, Engineered stone)
HPL for wall surfaces that are certified
as noncombustible. These products
became a major hit for residential kitchen
panels. These are used in hospitals,
schools, transport facilities, due to
their robustness, design, and ease of
construction.
Residential
Non-residential
From counters made with HPL to acrylic-resin artificial marble and engineered stone made with natural crystals, we have an extensive line-up of the major counter materials.
Noncombustible decorative panels (ARDICA, LUNALITE, MACE, MOISS)
Fittings & Interior Housing Materials
Residential
Non-residential
Noncombustible panels for walls. They
include wall finishing materials made
by decorating calcium silicate boards
with resin or sheets, extruded cement
panels for exterior walls, and interior wall
materials with humidity regulation and
deodorant properties.
Residential
Non-residential
Finished products such as doors, sliding doors, storage, and toilet booths made with materials such as HPL and decorative boards. Our strengths lie in the abundant range of colors and patterns as well as our universal design.
Residential
Non-residential
Group Network
Location | Major products handled |
Construction Materials Business |
In AICA's 10 Years Vision, we have set ourselves a goal of earning at least 45% of our net sales from our overseas business by the year ending March 2027.
We are striving to further develop our overseas business through the establishment of new overseas sites and the proactive use of M&As.
Major sites overseas
(as of August 31, 2020)
AICA Asia Laminates Holding Co., Ltd.
Aica Laminates India Pvt. Ltd.
PT. AICA Indonesia
PT. Techno Wood Indonesia
Aica Laminates Vietnam Co., Ltd.
Sois Mendinni Industrial Technology (Shanghai) Co., Ltd.
Wilsonart (Thailand) Company Limited
Wilsonart (Shanghai) Co., Ltd.
Wilsonart Australia Pty Ltd.
10 Wilsonart Asia Limited
AICA HPL Trading Joint StockCompany
Overseas holding company for Construction Materials Business
Manufacture and sale of high pressure laminates (HPL)
Manufacture and sale of high pressure laminates (HPL), melamine noncombustible decorative panels, and industrial adhesivesManufacture and sale of boards
Manufacture and sale of high pressure laminates (HPL) and melamine noncombustible decorative panelsSale of construction materialsManufacture and sale of high pressure laminates (HPL)
Manufacture and sale of high pressure laminates (HPL) and noncombustible decorative panels.
Manufacture and sale of low pressure laminates
Sale of high pressure laminates (HPL) and noncombustible building materials
Sale of high pressure laminates (HPL)
Location | Major products handled |
Chemical Products Business | |
AICA Asia Pacific Holdings Group |
AICA Asia Pacific Holding Pte. Ltd.
2 Dynea (Guangdong) Co., Ltd.
3 Dynea (Shanghai) Co., Ltd.
4 Dynea (Nanjing) Co., Ltd.
SHENYANG AICA-HOPE KOGYO Co., Ltd. KUNSHAN AICA KOGYO CO., LTD.
7 AICA Dong Nai Co., Ltd.
8 PT. AICA INDRIA
9 PT Aica Mugi Indonesia
10 AICA Singapore Pte. Ltd.
11 AICA HATYAI Co., Ltd.
12 Aica Bangkok Co., Ltd.
13 Thai Chemical Corporation Ltd.
14 AICA Malaysia Sdn. Bhd.
15 AICA NZ Limited
16 DYNEA PAKISTAN LIMITED
Overseas holding company for Chemical Products BusinessManufacture and sale of industrial adhesives and resins, plywood adhesives, composite board resins, and specialty & performance materialsSale of chemical products
Manufacture and sale of industrial adhesives and resins, plywood adhesives, composite board resins, and specialty & performance materialsManufacture and sale of industrial resinsManufacture and sale of installation adhesives, construction resins, and specialty & performance materials
Manufacture and sale of industrial adhesives and resins, plywood adhesives, composite board resins, and construction resins Manufacture and sale of industrial adhesives and resins, construction adhesives, and specialty & performance materials
Manufacture and sale of industrial resins, plywood adhesives, composite board resins, and overlays
Manufacture and sale of industrial adhesives and resins, plywood adhesives, composite board resins, and specialty & performance materialsManufacture and sale of plywood adhesives and composite board resins
Manufacture and sale of industrial adhesives and resin and specialty & performance materials
Manufacture and sale of industrial adhesives and resins, composite board resins, and plasticizers
Manufacture and sale of industrial adhesives and resins, plywood adhesives, and composite board resins
Manufacture and sale of industrial adhesives and resins, plywood adhesives, and composite board resins
Manufacture and sale of industrial adhesives, plywood adhesives, and composite board resins
2 AICA Harima Kogyo Co., Ltd. Manufacture and sale of noncombustible decorative panels
EVERMORE CHEMICAL INDUSTRY CO., LTD.
POU CHIEN CHEMICAL CO., LTD.
CHEM-MAT TECHNOLOGIES CO., LTD.
GIANT STAR TRADING CO., LTD.
TOPCO (SHANGHAI) CO., LTD.
Sale of specialty & performance materials
LEADERSHIP (SHANGHAI) CO., LTD.
Top Well Elastic Technology CO., LTD.
Sale of specialty & performance materials
U-BEST VIET NAM POLYMER INDUSTRY CO., LTD.
Manufacture and sale of specialty & performance materialsManufacture and sale of specialty & performance materials Manufacture and sale of specialty & performance materials
Sale of specialty & performance materials
Sale of specialty & performance materials
Manufacture and sale of specialty & performance materials
OtherAICA America, Inc.
Sale of specialty & performance materials
NISHI TOKYO CHEMIX VIETNAM COMPANY LIMITED
Sale of chemical products
Construction Materials Business
1 Nagoya Plant
Chemical Products Business
2 Jimokuji Plant
3 Fukushima Plant
4 Isesaki Plant
5 Ibaraki Plant
6 Tanba Plant
7 Hiroshima Plant
Manufacture of high pressure laminates (HPL) and noncombustible decorative panels
Manufacture of industrial adhesives and resins, Plywood adhesives, construction adhesives, construction resins, and specialty & performance materials
Manufacture of construction resinsManufacture of industrial adhesives and resinsManufacture of specialty & performance materials
Manufacture of specialty & performance materialsManufacture of Plywood adhesives, construction adhesives, and construction resins
Group companies in Japan
Construction Materials Business
1 AICA Interior Kogyo Co., Ltd.
3 AICA-TECH Kenzai Co., Ltd.
AICA-TECH Engineering Co., Ltd.
Chemical Products Business
NISHI TOKYO CHEMIX Corporation
2 SOKO Service Co., Ltd.
Manufacture and sale of counters, fittings, and interior housing materials
Manufacture and sale of noncombustible decorative panelsInstallation of noncombustible decorative panelsSale of chemical productsReplenishment and transport of specialty & performance materials
Progress in AICA's 10 Years Vision and Medium-Term Business Plan
About AICA
Background to establishment of AICA's 10 years Vision
AICA has established AICA's 10 years Vision with the goal of the year ending March 2027, the 90th anniversary of the company. With the aim of transforming into a solid, robust management structure that will not be easily influenced by trends in the Japanese construction market, in the Chemical Products Business, we will aim to become Asia's top manufacturer of resins for the construction sector, which supports people's lives and social infrastructure. We will also grow non-construction sectors such as automotive, daily commodities, and electronic materials. In the construction materials business, we are aiming for further business growth as a "space design manufacturer" that can provide comfort and safety to residential and non-residential living spaces.
■ Financial targets by 2027/3
AICA's 10 years Vision
2017/3 | 2027/3 |
Consolidated net sales | 151.6 billion yen 300 billion yen |
Consolidated ordinary profit | 18.3 billion yen 30 billion yen |
ROE | 9.9% 10% or more |
Overseas sales ratio | 30.8% 45% or more |
■ The future vision at 2027/3
Chemical Products Business
Sales: 170 billion yen
Aica Group will aim to be Asia No.1 resin manufacturer in the con-struction sector to support people's life and social infrastructure. We will also grow our business in non-construction sectors, including automotive/daily goods/ electronic materials.
Construction Materials Business
Sales: 130 billion yen
Aica Group will stretch the strength in the interior wall materials into the exterior wall as well. We will continue to grow as a "Solution Provider for Space Design" that offers comfortability & safety in residential & non-residential buildings.
Business collaboration | We will continue to enhance the collaboration between Chemical products business and Construction Materials business to develop unique products that contribute to the society. |
Utilizing capital tie-up and M&A | We will actively and efficiently utilize our own funds for our future growth, including capital tie-up or M&A. |
In order to establish a system which can respond to changes in market environment, we are strengthening group collaboration and business foundations.
Optimize production & logistic systems
Compliance
Technology and material cooperation
QEO management
R&D investment
Healthy financial base
IT infrastructure investment
We promote diversity management. In order to develop globally competent human resources and professional human resources, we will establish a variety of development systems.
Globally competent human resources
Diversity
Professional human resources
We will put an emphasis towards engagement with stakeholders, and promote management which contributes to local communities and enhances CS and ES.
Increase corporate value
Corporate governance enhancement
Harmony with local communities
Improvement of CS & ES
2017/3 151.6 billion yen (80th anniversary)
2021/3 200 billion yen
■ Financial targets (Consolidated)
■ Basic Policy
1 To seek and realize 3 growth drivers (P21 - )
2 Operation Base Enhancement to support the growth
❶
Sustainable growth of key domestic business by enhancing AS products*1
❷
Development and investment in focus fields for the next generation (Non-construction fields, untapped markets in construction fields)
❸ Overseas deployment of Japanese technologies
*1 AS Products: P21 *2 C&C activities: P29 *3 QEO Management: P30
■ Investment Strategy
Area expansion, expansion
Item | 2017/3 (Achievement) |
Net sales (billion yen) | 151.6 |
Ordinary profit (billion yen) | 18.3 |
ROE | 9.9% |
Overseas sales ratio | 30.8% |
Amid a business environment that is going through major changes, | |
2021/3 | |
(Target) | such as changes in housing demand due to the shrinking population, |
declining birth rate and aging population, deterioration of infrastructure | |
200 | |
and buildings, a growing awareness of the environment, an increase in | |
22 | the consumption tax, and technological innovations such as IoT and AI, |
the Medium-Term Business Plan "C&C 2000" aims to achieve sustain- | |
10% or more | |
able growth and increase our corporate value by leveraging the AICA | |
35% or more | |
Group's strengths in chemistry and design to create original products | |
that will contribute to the realization of an abundant society. |
Capital investment | 22 billion yen Capacity expansion, line automation, IT overhaul |
M&A | 18 billion yen Area expansion, expansion of business domains |
Progress in Medium-Term Business Plan
2027/3 300 billion yen (90th anniversary)
R&D Expenditure | 14 billion yen Introduction of new technologies, industry-academia collaboration |
Human resources investment | Active recruitment and cultivation of global humanresources, work style reform, development of professional human resources, promotion of diversity |
Proactive leveraging of M&As, operation of newly established plants, and opening up of new markets enabled us to achieve dramatic growth in the first two years of the Plan, but our forecast for the year ending March 2021, the fourth year of the Plan, are that some of our initial targets will, unfortunately, not be met due to the impact of COVID-19.
■ Progress towards financial goals (Consolidated)
1st year | 2nd year | 3rd year | 4th year | |
Item | 2018/3 (Achievement) | 2019/3 (Achievement) | 2020/3 (Achievement) | 2021/3 (projected) |
Net sales (billion yen) | 163.7 | 191.3 | 191.5 | 174.5 |
Ordinary profit (billion yen) | 19.6 | 21.2 | 21.3 | 14.7 |
ROE | 10.1% | 10.7% | 9.9% | 6.9% |
Overseas sales ratio | 33.4% | 42.0% | 40.7% | 40% or more |
■ Progress of investment strategy
(billion yen)
Item | 1st year achievement | 2nd year achievement | 3rd year achievement | 4th year Plan |
Capital investment | 4.52 | 7.89 | 7.13 | 7.0 |
Business investment | 5.46 | - | 14.45 | In planning |
R&D Expenditure | 2.85 | 3.2 | 3.45 | 3.6 |
About AICA
Mid-Term Business Plan Three growth drivers for the creation of new value 1
Expansion of AS productions to contribute to the solution of social issues
About AICA
What are AS products?
We offer products that help to solve a variety of social issues, not only environmental ones, promoting them as AS (AICA Solution) products. We identify social issues through engagement with our various stakeholders and conduct product development that ex-plores ways of solving those issues. We will aim for the sustainability of both society and the company by expanding sales of high added-value products that leverage our strengths in chemistry and design in our primary business field of the Japanese construction market.
Status and future outlook for AS Products
In FY2019, although the Japa-nese construction market, our pri-mary field of business, was sluggish in both residential and non-residen-tial sectors, the Construction Mate-rials Business increased its sales, particularly of AS products, contrib-uting to growth in net sales. AS products now account for about 10% of Aica Kogyo's (parent com-pany only) net sales on a non-con-solidated basis and have become a growth driver for the company.
■ Year-on-year growth *Applicable products are reviewed every year, so the comparisons are for each fiscal year.
(%)
150
(%)
150
FY2020 AS Products Sales Target
100
100
Year-on-year change
50
50
112%
0
0
2017
2018
2018
2019
■ Examples of social issues in which AS products can help
Social issue | Value added to solution | Typical AS Product that can provide value |
Degradation of infrastructure and buildings | Extension of life of buildings Provide products for the repair of degrading buildings, products for renovations | [Repair/reinforcing materials]
|
Climate change (global warming, etc.) | Reduction of CO2 during transport Reduce greenhouse gas emissions by developing and expanding sales of products that have good load efficiency, e.g. reducing weight of products. | [Noncombustible building materials]
[Boards, films, etc.]
|
Shortage of skilled workers on building sites | Easy-to-install products Develop products that are easy to construct, to augment the shortage of skilled workers resulting from labor shortages accompanying the declining birth rate and aging population. | [High Pressure Laminate (HPL)]
|
Depletion of natural resources | Protection of the natural environment Curb forest felling and quarrying of stone materials through the effective use of wood and stone materials and proposals for alternative materials. | [Countertops]
|
Diversity | Universal design Promote the development of products that people of all ages can use, from small children to the elderly. | [Fittings, Interior Housing Materials]
|
China-Japan Union Hospital of Jilin University (Changchun, China), which has decided to install AICA Virutect and CERARL Virutect in the corridors of its ICU and emergency department
The conventional AICA PUR HARD construction method has been praised for its superior durability and has been adopted in places such as factories where unmanned forklifts (AGV) bearing heavy loads move around. The AH construction method retains the durability of the conventional method, and with the use of AICA's proprietary resin design technology, decoloring due to UV rays has been curbed, so it can now be used in auto repair shops that are half outdoors. Further, shrinkage stress resulting from cure shrinkage has been significantly reduced, eliminating the need to deal withcut joints for the prevention of peeling, thus reducing construction period.
Virutect Series
Due to the impact of globalization, viruses and bacteria are spread-ing more easily in all seasons, making measures to combat them in-creasingly important. AICA Virutect is a high pressure laminate (HPL) with embedded antiviral agent that was launched in January 2019 to offer a solution to this kind of social issue. Antiviral construction ma-terials are being actively adopted in medical and welfare facilities, childcare and educational facilities, and similar places to eliminate causes of users' concern as much as possible.
To assistance in society's transition to a "new normal," we have expanded the range of these products to include CERARL Virutect, a melamine noncombustible decorative panel with embedded antiviral agent, and toilet booths, doors, counters, and other products that have AICA Virutect as the surface material. By expanding the range of applicable products, we plan to capture all manner of needs in the residential and non-residential markets and in floor, wall, furniture and fixture applications and grow Virutect Series sales to 5 billion yen in three years' time.
Results of weather resistance testing [irradiation for 300 hours with germicidal lamp]
New method
PUR HARD AH Construction Method
Conventional method
General epoxy pour and spread method
No need for cut joints, for quicker construction
Heat-resistant type can be used in food processing plants, etc.
Development and investment in focus fields for the next generation
About AICA
Strengthening the non-construction sector in the Specialty & Performance Materials Business and promoting business diversification
Attaining total proposals for interior spaces with the launch of a completely new kind of floor material
Opening up markets for expanding new applications through the roll-out of Evermore Chemical Industry products
Leveraging the strength of Melamine Tile to distinguish our products from our competitors
The Evermore Chemical Industry Group (EMC Group), which became part of the AICA Group in January 2018, is pursuing new initiatives, such as rolling out its textile adhesives for adher-ing different types of fabric in Japan, as well as its mainstay cross-linking agents. EMC Group produces everything from up-stream materials to finished resin products, so combining this with our design technologies has made it possible to create products that better suit the preferences of customers.
In July 2020, the EMC Group further reinforced its production facilities by making two Vietnamese companies that own poly-urethane manufacturing equipment into its subsidiaries. Its aim is to expand its share in the booming Vietnamese market.
In July 2019, we began selling Melamine Tile, a completely new kind of floor material that has opened up a new product area. After about a year of marketing of this product, it has been praised for its dirt and scratch resistance and has achieved a certain level of success, including being adopted as the floor material for a major apparel store. Under social circumstances of a chronic shortage of skilled workers, Melamine Tile have also been recognized for their relative ease of construction. By further expanding sales of Melamine Tiles which endeavor to provide a difference from products in the conventional floor market, we will offer our own original suggestions, including for furniture, fix-tures, and wall surfaces.
New production site in Vietnam with polyurethane manufacturing facilities
Lumiart HC Series of hard-coat 3D decorative film, which boasts high stretchability
Competitive advantage of Melamine Tile
The hard-coat 3D decorative film we have developed boasts a stretch rate of 250% and it also has excellent chemical and wear resistance. This product, made with UV coating that we have spent more than ten years researching, succeeds in achieving both extensibility and wear resistance, two attributes that would ordinarily be traded off against each other.
In addition to their resistance to scratches and dirt and excellent ease of construction, another strength of Melamine Tile is its ease of maintenance. Because it does not mark easily, any dirt can be wiped off with a damp cloth, and no waxing is needed. This will al-leviate the burden of cleaning and also contribute to cost savings.
The Lumiart HC Series targets automotive interior decorative components such as instrument panels. We have also succeed-ed in the development of an "S Grade" product that is suitable for exteriors and, a "Texture Grade" product that offers a surface texture. We are currently proposing these products to automo-tive manufacturers. We are promoting this business in anticipa-tion of full-scale mass production in several years' time.
Hard coat film after 3D decorative formingFilm being stretched
External appearance after heel mark resistance testExternal appearance after hairdye resistance test
Overseas roll-out of Japanese technology
Creating further synergy, centering on the good-performing PF resins business
Building a foundation in the growing Asia market through active leveraging of M&As
Overseas Planning Department established with aim of strengthening cooperation with overseas Group companies
Wilsonart's Asia-Pacific region companies become part of AICA Group
In April 2020, we established a new Overseas Planning De-partment. The Business Promotion Office in the Overseas Plan-ning Department shares information that transcends the bound-aries of Group companies and organizations with the aim of pursuing business with greater speed while making the most of each group's strengths. For example, we developed and de-signed PUR Hot Melts for wood, which are produced by the EMC Group and distributed using sales channels of the AICA Asia Pacific Holding Group (AAPH Group). Each group will con-tinue to make the most of their development strengths, produc-tion strengths, and sales networks to propose products to meet customers' needs.
In December 2019, four Asian operating companies owned by Wilsonart, a major manufacturer of high pressure laminates (HPL), became part of AICA Group. Wilsonart was established in Texas, U.S.A., in 1956 and currently operates all over the globe. This acquisition not only of Wilsonart's brand power but also its production sites and sales networks is a major step toward the expansion of our market share in the Asia/Oceania region. We will leverage the respective strengths of Wilsonart and AICA and demonstrate synergy through the expansion of sales opportuni-ties by rolling out Wilsonart's original products that we do not have and, where both companies have similar products, differen-tiating between them with design to optimize our product offer-ings.
Wilsonart (Shanghai) employees with AICA Group executives
Strengthening the Vietnamese market which continues to show economic growthIncrease in demand in China for environmentally friendly PF resins for bamboo applications
With the increase in environmental awareness in China, de-mand for PF resins for bamboo applications has risen sharply. Because bamboo grows quickly in about four to five years, it is more environmentally friendly than slower growing trees. Artificial wood made from bamboo using PF resin manufactured by the AAPH Group offers excellent dimensional stability and durability, so is sold as a high-grade product. It boasts a high share of the high-grade market in China, and with sales routes to the United States and Europe as well, further growth is expected for this product going forward.
While taking advantage of the technologies of our PF Resin Division in Japan, which is strong in industrial markets such as the automobile industry, we will meet the broader needs for PF resins in the Asia/Oceania region.
In March 2020, through Aica Asia Laminates Holding Co., Ltd., we established AICA HPL Trading joint stock company. This company took over the operations of the companies of the CHI Group, our HPL distributor in Vietnam. Vietnam has a population of just over 100 million and a market that is expected to show massive growth as the "next China". We began manufacturer of HPL at Aica Laminates Vietnam Co., Ltd. in May 2019, so we now have both manufacturing and distribution arms in Vietnam. Aica Laminates Vietnam is the first company to manufacture HPL in Vietnam. Leveraging our strengths in manufacturing and distri-bution, we will aim to expand sales of HPL not only in Vietnam itself, but throughout Asia through exports to other neighboring countries.
Signing ceremony
About AICA
Chemical Products Business
About AICA
Kenji Ebihara
To become No. 1 in Asia
We will use our core technologies to expand our high added-value prod-ucts and contribute to society, while pursuing a transformation into a more profitable business. Taking maximum advantage of our overseas Group companies, we will engage in the ex-pansion of synergies and the strength-ening of BCP and governance, in our aim to become No. 1 in Asia.
Nobuyuki Omura
As a pillar in the non-construction sector
Director and Managing Executive Officer Head of the Chemical Products Company
Director and Managing Executive Officer Head of the Specialty & Performance Materials Company
Merging the resin design technol-ogies and quality control methods we have cultivated in Japan with the technologies and sales networks of our overseas Group companies, we will build a pillar of profitability in the non-construction sector. We will swiftly capture the needs of the new normal era, such as antiviral performance, automation, and digitalization, and expand the arena in which AICA can flourish and succeed.
Trends in Business Performance
■ Net Sales
(billion yen)
■ Operating profit (billion yen)
■ Sales performance by product category
8.1
2019 (FY)
2015
2016
2017
2018
2019 (FY)
2015
2016
2017
2018
Average annual growth 7.7%
Average annual growth10.7%
Net Sales
89.4 billion yen
Operating profit
5.7 billion yen
FY2020 Targets
FY2019 Results
In adhesive products, in Japan, sales of adhesives for laminated lumber and industrial phenol resins were sluggish, but our adhe-sives for construction and plywood adhesives performed well, allowing us to increase overall sales of adhesives. Meanwhile, overseas, sales volumes increased in China, prompted by the tightening of environmental regulations, and in Thailand, but lower raw material prices led to a drop in sales prices and net sales revenue was down.
In construction resin products, the exterior and interior finishing coat, JOLYPATE, improved over last year, but floor coating materials for factories and warehouses and repair/reinforcing materials for civil works were sluggish, resulting in an overall decline in sales over the previous year.
In the Specialty & Performance Materials Business, in which we are focusing our efforts to make inroads into the non-construction sector, UV-curable resins for electronic materials and silicone products performed well in Japan, but Acrylic emulsion and water-based compounds products for coating and textile applications and polymer beads for industrial applications were sluggish, resulting in a decline over the previous year. Overseas, on the other hand, due to the review of low-profit trades by Evermore Chemical Industry, which has been included in consolidated results since the previous year, and falling sales prices due to lower raw material prices, net sales were down over the previous year, but a focus on business with higher profit margins led to a major increase in profit.
These results brought about net sales of 103,945 million yen (-4.7% year-on-year). Operating profit (before deduction of unallocated operating expenses) was 8,123 million yen (+9.1% year-on-year).
Adhesives
Expanding overseas business and creating investment effectiveness
The AAPH*1 Group accounts for about half of the Chemical Products Business's net sales. While falling raw material prices have caused a fall in net sales, profit margins have increased, and we will push forward on our expansionary path.
■ Development of lignin-phenol resin made with plant-derived raw materials
AAPH, the overseas holding company for our
Chemical Products Business, has succeed-
ed in the development of a lignin-phenol res-in, made by combining lignin, a plant-derived unutilized resource (biomass) with PF resin. With the growing seriousness of environmen-tal issues, there are several R&D projects un-derway around the world on combining lignin and PF resin. AAPH was one of the first com-panies in the Asia/Oceania region to start this kind of research and it has succeeded in de-veloping a lignin-phenol resin. Going forward, it will pursue the commercialization of the product as a plywood adhesive. The AICA Group will continue to engage in the devel-opment of products that make use of recy-clable materials.
■ Expansion of sale of PF resin for bamboo materials
In China, demand is growing for man-made wood made with bamboo, due to a growing awareness of environmental issues. The AAPH Group sells a binder resin that is indis-pensable in the manufacture of man-made wood.
■ Effective use of bamboo
Bamboo
CrushingCompression
For arti cial wood
About AICA
*A related article appears on P24.
Construction resins
Emphasising on expanding sales of differentiated commodities
In recent years, a shortage of skilled workers on construction sites has become a social issue. We are playing our part of solve this problem by providing products that require less construction effort. We are also concentrating our efforts on repair/reinforcement prod-ucts to contribute to the extension of life of buildings and to ensure their safety.
Before application | After application |
Clear membrane makes it possible to check changes in the crack after application
Gun-type applicator enables quick and easy repairs of cracks in concrete
Specialty & Performance Materials
Synergy expansion between Aica Kogyo, AAPH Group, and EMC*2 Group
EMC has captured the top share of the market for polyurethane systems (PUS) for athletic shoe soles in Vietnam. With the aim of the localization of this business, EMC has acquired a urethane man-ufacturer in Vietnam, to secure sufficient land and manufacturing equipment. EMC is now aiming to grow its share of the polyure-thane market in Vietnam, which is expected to expand further.
EMC has captured the top share
of the market for polyurethane
systems (PUS) for athletic shoe
soles in Vietnam.
*1 AAPH: AICA Asia Pacific Holding Pte. Ltd. *2 EMC_ Evermore Chemical Industry
Construction Materials Business
About AICA
Expansion of overseas business and pursuit of added value
Last fiscal year, we established and expanded our bases for the Construction Materials Business in the Asia/ Oceania region. We are optimizing our portfolio and forging ahead with the goal of achieving 30 billion yen in overseas sales in the Construction Materials Business in the year ending March 2027.
We will also expand our range of functional, high value-added products and address a variety of challenges for adapting to a drastically changing society, climate, and environment. One example of this is the Virutect Series of antiviral construction materials that offer "new lifestyle spaces for the new normal."
Yukihiro Iwase
Director and Senior Managing Executive Officer/Head of the Building & Housing Materials Company
Trends in Business Performance
■ Net Sales
(billion yen)
■ Operating profit (billion yen)
■ Sales performance by product category
2019 (FY)
2015
2016
2017
2018
2019 (FY)
2015
2016
2017
2018
Average annual growth 4.7%
Average annual growth 5.4%
Noncombustible building materials
CERARL
Net Sales
85.1 billion yen
Operating profit
12.3 billion yen
FY2020 Targets
FY2019 Results
Sales of high pressure laminate (HPL) in Japan were down year-on-year due to the decline in the area of new building starts in the non-residential sector, but overseas sales were up due to an increase in sales volumes in India and Indonesia. Further, thanks to the con-tribution of Sois Mendinni Industrial Technology (Shanghai) Co.,Ltd., the Chinese company whose results have been included in our con-solidated results from the second quarter of the consolidated accounting period, which enabled us to increase overall sales for the year.
In boards and films, our general-purpose decorative polyester plywood boards struggled, resulting in a year-on-year decline.
Our melamine noncombustible decorative panel CERARL has steadily captured demand for residential kitchen panel applications, educational facilities, medical and welfare facilities, shops, offices, public facilities, and the like. There has also been increased adop-tion of CERARL Deodorization Type and CERARL Virutect, a melamine noncombustible decorative panel with embedded antiviral agent, resulting in an increase in sales over the previous year.
In noncombustible building materials, thanks to the synergy with AICA-TECH Kenzai Co., Ltd., LUNALIGHT, our decorative acrylic calcium silicate panels, and MACE, our extruded cement panels, are capturing demand in sports facilities, educational facilities, fac-tories and warehouses, hotels, and retail facilities, enabling us to increase sales in this category.
In the counter/postform product category, handwashing basin countertops for small children made with our artificial marble, CORI-AN, has captured thriving demand in the new construction and renovation of childcare facilities, and our premium engineered stone, Fiore Stone, has also captured demand in kitchens and vanity countertops, resulting in an increase in sales.
In fittings and interior housing materials, our U.D. (Universal Design) Comfort Series of functional fittings for medical and welfare facilities performed well, but our range of residential fittings slumped due to a harsh market environment, resulting in a year-on-year decline.
These results brought about net sales of 87,555 million yen (+6.4% year-on-year). Operating profit (before deduction of unallocated operating expenses) was 15,874 million yen (-1.8% year-on-year).
Domestic market
Focus on on-site construction products, centered on AS* products
■ Antivirus construction materials
New viruses are being discovered all the time. With the aim of forming a society that co-exists with these viruses, we offer prod-ucts that ease such concerns.
For table tops used by multiple people
For doors and walls at medical and welfare facilities and educational facilities
■ Easier construction products
The Japanese construction market is facing a chronic shortage of skilled workers. We will contribute to solving this social issue by ex-panding our range of products that are eas-ier and quicker to construction and apply.
HPL with an adhesive backing can be used to repair just the top of table.
Advanced-design panels that can be adhered directly to modular bath units
■ Break into new markets
We will concentrate our efforts on expanding sales of Fiore Stone, demand for which con-tinues to grow, and of Melamine Tile, which we launched last year, while also working on open-ing up new markets.
Demand for the engineered stone, Fiore Stone, for kitchen countertops is increasing.
Sales of Melamine Tile are increasing, primarily in commercial facilities.
*Abbreviation for "AICA Solution". Products that help solve social issues.
Overseas Markets
Aim to expand share in growing Asia/Oceania region
Through the active M&As and the establishment of new sites, we have made major progress in the development of the AICA Group's construction materials business platform in the Asia/Oceania region.
■ Wilsonart's Asia-Pacific region companies become part of AICA Group
Four Asian operating companies owned by Wilsonart, a US-based, global manufacturer of HPL, become part of AICA Group. We will merge the production technologies and product devel-opment capabilities of our two groups and market high val-ue-added products in a bid to expand our overseas construction materials business.
■ Establishment of AICA HPL Trading Joint Stock
Company (AHT)
We took over the business of the CHI Group, a Vietnamese distributor of HPL and established AHT. It will coordinate with the Aica Laminates Vietnam Co., Ltd. to strive for the further development of our business in Vietnam.
*A related article appears on P24.
[Overseas Construction Materials Business Net Sales]
Target of 30 billion yen* by the 2027/3, the final year of
AICA's 10 years Vision
*Actual net sales for year ended Mar. 2020: 7.5 billion yen
About AICA
AICA's Vision
Foundations of AICA
AICA's CSR Activities
We believe that fulfilling our corporate social responsibility (CSR) is an essential condition for our continued existence as a corporation and a mission that we must carry out toward broader society. We are striving to build frameworks for the promotion of CSR, to strengthen the foundations that will support our CSR activities and to make continuous improvements and enhancements to those foundations.
CSR Promotion Framework
The promotion of CSR activities is led by the CSR Committee, a cross-divisional organization.
Its constituent divisions strive to deepen their activities in their respective areas of responsibility, working to achieve the materiality targets.
CSR Committee
Chair: Satoshi Toudou, Director and Senior Managing Executive Officer Deputy Chair: Ryoji Mori, Director and Managing Executive Officer
Secretariat: Corporate Planning Department
Members:
Constituent divisions | Major matters handled | Person in charge |
Corporate Planning Division | Management strategy, public relations and investor relations | Director and Senior Managing Executive Officer |
Purchasing Division | Supply chain | Senior Executive Officer and General Manager, Purchasing Department |
Human Resources Division | Social issues (health, human rights, labor, diversity) | Executive Officer and General Manager, Human Resources Department |
Quality Assurance Division | Quality | General Manager, Quality Assurance Department |
General Affairs Division | Governance | General Manager, General Affairs Department |
Legal Division | Compliance, anti-corruption | General Manager, Legal Department |
Safety and Environment Division | Environment (climate change, industrial waste, resources and pollution, water use), occupational health and safety | General Manager, Safety and Environment Department |
Sales Administration Division | Development and sales expansion of AS*1 Products | Executive Officer General Manager, Sales Planning Department, Sales Administration Division |
Overseas Planning Division | Strengthening of overseas Group governance | General Manager, Overseas Planning Department |
R&D Division (R&D Centers) | Development and sales expansion of AS*1 Products | General Manager, Nagoya R&D Center General Manager, Jimokuji No. 1 R&D Center |
AAPH*2 Sustainability Division | CSR promotion officer at overseas Group company | General Manager, Sustainability Division of AAPH*2 |
Coordination
· Corporate Ethics Committee
Chair: Representative Director and President
· Internal Control Committee
Chair: Representative Director and President
· Information Management Committee Chair: Director and Senior Managing Executive Officer
· Business Continuity Plan (BCP) Committee
Chair: Director and Senior Managing Executive Officer
· Overseas Group Governance Committee Chair: Director and Senior Managing Executive Officer
· C&C Promotion Committee Chair: Managing Executive Officer
· QEO Committee
Chair: Managing Executive Officer
· Security and Trade Control Committee Chair: General Manager, Legal Department
· Climate Change Response Project Chair: General Manager, Safety and Environment Department
· Work Style Reform Promotion Project Chair: Exective Officer and General Manager, Human Resources Department
· Diversity Promotion Project
Chair: Member, Human Resources Division
etc.
Various Committees and Projects
*1 Abbreviation for "AICA Solution". Products that help solve social issues.
*2 AICA Asia Pacific Holding Pte. Ltd.
C&C Activities
C&C activities are small-group activities in which all employees in all divisions partic-ipate. These groups discuss and implement specific action plans, using QC methods and other scientific approaches, to consider ways of achieving operational improve-ments and implement division policies.
These activities have a long history, with their predecessor, the ZD Campaign, start-ing in 1965 with the objective of raising productivity. The initial aim of that campaign was to achieve "zero mistakes" in the work through careful attention and innovative efforts by individual employees. From 1979, the C&C Campaign was rolled out, taking the initials of the present Corporate principle, Challenge & Creation. The campaign took on a broader meaning to include "promoting initiatives for the achievement of manage-ment goals," which has been passed down to today's C&C activities.
QEO Management System
This is a management system that operates with a trinity of quality (Q: ISO 9001), environment (E: ISO 14001) and occupational health and safety (O: ISO 45001). As well as complying with laws and regulations, under this system, we conduct risk hedging and kaizen activities, promote the enhancement of quality, improvement of environmental indicators (reduction of greenhouse gas emis-sions and industrial waste, reinforcement of water management, etc.), and the creation of safe and comfortable workplaces, and strive to strengthen our business infrastructure from the perspectives of both risk and opportunity.
● QEO Committee
This committee promotes QEO
Management System implementa-tion. It is managed by the Quality Assurance Department and Safety and Environment Department, this committee works toward the achievement of QEO policies.
● QEO Group Representatives Meeting
The QEO Committee acts as the secretariat and holds semi-annual meetings that are attended by AICA's senior executives and representatives of Group companies in Japan and overseas.
As well as confirming QEO achievements and the status of improvements at individual Group compa-nies, the meeting's attendees exchange information by sharing case studies and discuss and decide on countermeasures.
Signing of United Nations Global Compact
To promote and implement high-quality CSR activities as a company that operates its busi-nesses on a global scale, in September 2018, the AICA Group signed the United Nations Global Compact, which declares voluntary action principles concerning human rights, labor, the environ-ment, and anti-corruption.
Response to SDGs
The Sustainable Development Goals (SDGs) were ad-opted at the United Nations Sustainable Development Summit in September 2015. These international goals have a target year of 2030. They consist of 17 goals and 169 targets to realize a sustainable world, covering issues such as poverty, starvation, energy, climate change, and peaceful society. The AICA Group endorsed these goals and commenced initiatives to solve relevant issues.
Foundations of AICA
AICA Group's Materialities
Materialities and KPI
The AICA Group began selecting materialities (key issues) in FY2016. In May 2018, we reviewed the materialities, with reference to various guidelines.
Process for selection of materialities
STEP 1
: Extraction of issues
● Potential materialities were extracted from various guidelines related to CSR, including the GRI Standards, the SDGs, and ISO 26000.
STEP 2
: Organization of issues
● The potential materialities are assessed from the dual angles of the per-spectives of stakeholders (customers, shareholders, suppliers, employ-ees, local communities) and our corporate philosophy and corporate policy. They are then plotted onto a matrix and the issues are organized.
STEP 3
: Prioritization of materialities
● The top-ranking issues from both stakeholders' perspectives and com-pany management perspectives are provisionally decided as key is-sues.
STEP 4
: Finalization of materialities
● The suitability of the selected material issues is discussed and ap-proved in the Management Meeting and the issues that are ultimately at the top of the list are finalized as the materialities.
Major
(Impact on stakeholder evaluations and decision-making)
Importance to stakeholders
Corporate governanceCorporate results (economic performance)
Prevention of global warming
Reduction of industrial waste
Reduction of water useThorough implementation of usage complianceEnhancement of human resources development and education and training programs
Improvement of customer satisfaction
Strategic roll-out of CSR in overseas sites (community service)Improvement of occupational health and safety
Human Rights Code of Conduct and human rights education
Promotion of responsible care
Diversity of human resources and equal opportunity
Communication with shareholders and investors
Integration of Management and CSR
Development and popularization of AS*6 productsRaise value through value chain collaboration
Improvement of employee satisfactionPromotion of work-life balance
MediumSmallMedium
Importance to AICA Group
(Significance of impact on organization's economy, environment, and society)
STEP 5
: Deliberate on report contents, measure indicators
STEP 6
: Report
STEP 7
: Review report outcomes and consider responses
Product Liability
Major
FY2019
Target*1
Achievement
Conduct and analyze customer satisfaction survey and pose issues *2
Survey based on new CSR assessment rating system*2: At least 80 companies
Audit and CSR improvement assistance based on assessment results*2: At least 15 companies
Audits: 12 companies
Formulate BCP for three overseas sites, formulate BCP based on flood damage scenario at four Japanese sites with a high flood risk, identify water risks at overseas sites
Conduct training at sites with completed BCPsConduct education aimed at raising standard of quality control*2
Collaborations with local activist organizations*2: 13 or more
Hold IR events for individual investors: 3 or more eventsHold small ESG meetings: At least 1 meetingImplementedSurveys: 102 companiesImplementedImplemented
Plan new education plans and commence operation of skills assessment
14 collaborations 1 event
1 event
Evalua-tionFY2020
Target*1
×Sales: 174.5 billion yen Ordinary profit: 14.7 billion yen
○ 〇
Incompletion of improvement of matter for internal control correction: 0
Formulation of CSR policies and non-financial goals in line with the next Mid-Term Business Plan
○
○
Review of Codes of Conduct based on CSR PolicyCompliance training
○
At least one at all sites of AICA Kogyo and Group companies in Japan
Confirmation of applicable laws and ordinance and conformity with them at overseas sites
○
Read Code of Conduct and Action Guidelines together All sites: Once a year
〇
Revision of systems based on outcomes of Employee satisfaction survey*2
×Enhancement of education and training programs using e-learning*2
〇
Percentage of annual paid leave taken*2 *3 Keep at 60% or more
Promotion of company-wide operational
〇
improvements*2
Percentage of women among new-graduate
〇
career track recruits joining in April 2021*2
At least 30%
Percentage of people with disabilities*2 *7:
○
At least 2.2%
Industrial accident frequency rate*4
〇
Less than national manufacturing industry average (Last
FY: 1.20)
Value of sales of AS products*2:
At least 17.8 billion yen (Year-on-year: 112%)
×Review and further invigoration of product range in lead-up to next Mid-Term Business Plan
〇
Greenhouse gas emissions revenue intensity*4 3% year-on-year decrease
×
Industrial waste emission revenue intensity*4 5% year-on-year decrease
〇
Water intake production intensity: 2% year-on-year decrease*5
○
Environment-related litigation or administrative penalties: 0
○
Conduct and analyze customer satisfaction survey and pose issues *2
×Mandatory submission of written agreement to CSR purchasing guidelines when signing new transaction contracts, request existing suppliers to submit written agreement*2
○
Assess risk at overseas sites, establish BCP, and conduct training
○
○
Establishment of new education plans and skills assessment*2
○
Formulation of guidelines for community service activities
×Hold IR events for individual investors: 3 or more events
○ Hold small ESG meetings: At least 1 meeting
PageSDG Response
P. 5 -P. 34
P. 29
P. 39
P. 43 -P. 46
P. 21
P. 49 -P. 56
P. 57
P. 41
-P. 59
P. 58
*1 Except for corporate business results, excludes portions newly included in consolidated figures in fiscal year in question *2 Target scope is AICA Kogyo (parent company only) *3 Paid leave is granted on September 16; leave taken is calculated for period from September 16 of previous year to September 15 of year in question
*4 Target scope is domestic production sites of AICA Group *5 Target scope is domestic production sites excluding AICA-TECH Kenzai Co., Ltd.
*6 Abbreviation for "Aica Solution." Products that help solve social issues. *7 Calculated according to statutory calculation methods
Foundations of AICA
Business Infrastructure
Corporate governance
Basic Policy on Corporate Governance
The AICA Group seeks to ensure and improve the value of the company and the common interests of its shareholders through the enhancement of corporate governance at each of its Group companies, including its subsidiaries in Japan and overseas.
In June 2020, we transitioned from a Company with a Board of Auditors to a Company with Audit and Supervisory Committee. The Audit and Supervisory Committee, more than half of whose the Audit and Surpervisory Committee members are external directors, is responsible for auditing and supervising the legality and appropriateness of the execution of business for the reali-zation of more transparent management. In this way, we aim to strengthen our corporate governance further and also to build a
framework that will more appropriately meet the expectations of our stakeholders in Japan and overseas.
We have also established a Governance Committee as an advisory committee to the Board of Directors. This com-mittee is chaired by an external director and its members are also primarily external directors. The Governance Committee deliberates on key matters concerning governance, including the appointment and remuneration of management executives, with the aims of sustainable growth, medium to long-term im-provement of corporate value, and further enhancement of gov-ernance functions.
● Corporate Governance Structure and Internal Control Systems (as of June 23, 2020)
Appointment/Dismissal
General Meeting of Shareholders
Appointment/Dismissal
Advice
External Counsel
Effectiveness of the Board of Directors
In order to verify the effectiveness of the Board of Directors, since January 2017, we have conducted an annual survey of all directors and auditors regarding the structure, operation, and agenda of the Board and the Board's support structure. The effectiveness of the Board is evaluated on the basis of the results of this survey. In the survey conducted in February 2020, responses of "appropriate or reasonably appropriate" were ob-tained for all except three of the matters surveyed. Based on this positive feedback, we confirmed that our Board of Directors is generally functioning appropriately and that its effectiveness
Internal Control Activities
In compliance with the Companies Act, the Board of Directors of the AICA Group has adopted a Basic Policy for Establishment of Internal Control Systems. Under this policy, the Group is working to reinforce the supervisory functions of the Board of Directors, risk management structures, and the creation of systems to improve the effectiveness of corporate compliance. The Internal Audit Office assesses the status of de-velopment and operations in these areas through auditing ac-tivities and interviews with the relevant departments, to confirm the effectiveness of the Company's internal control systems. We have also established an Internal Control Committee to respond
Directors' Remuneration
Remuneration of company directors consists of a fixed basic remuneration and variable performance-based remu-neration. The criteria and methodology for evaluation of per-formance-based remuneration, its percentage of total remuner-ation, and other relevant matters are published in the Annual Securities Report. The appropriateness of evaluations andremuneration amounts for individual directors is examined by the Governance Committee, whose main members are the external directors, to ensure objectivity and fairness. From the perspectives of their roles and independence, remuneration of external directors consists solely of basic remuneration.
is being ensured.
On the other hand, matters raised as issues were the en-hancement of diversity in the membership of the Board of Directors, enhancement of the establishment and operation of internal control and risk management frameworks, and enhancement of deliberation of risks that impact business. Regarding the diversity of the Board membership, a female ex-ternal director was appointed in June 2020. Going forward, we will work on making improvements to further raise the effective-ness of the Board of Directors.
to the internal control evaluation reporting system for financial reporting under the Financial Instruments and Exchange Act. The main committee members in charge of four major control processes conduct maintenance management and self-inspec-tion. Meanwhile, the Internal Audit Office conducts separate in-ternal audit assessments to maintain and improve the reliability of our financial reporting.
Each year, the Office reports to the Internal Control Committee on the status of internal control in the previous year, based on the financial reporting under the Act, and obtains approval for the current year's activity plans.
List of Directors (As of June 26, 2020)
Directors (excluding directors who are members of the Audit and Supervisory Committee) (7 male, 1 female)
Yuji Ono
Representative Director and President Born August 24, 1956
Apr. 1979 Joined AICA Kogyo Apr. 2000 No. 1 General Manager,
Chemical Development Dept.
Oct. 2002 General Manager, Sales Dept., Chemical Products Company
Jun. 2004 Executive Officer
Oct. 2004 Director, No. 2 R&D Center Apr. 2008 Head of the Chemical Products
Company
Jun. 2008 Director
Jun. 2009 Managing Director
Jun. 2010 Representative Director (present) and President
Jun. 2018 President and Executive Officer (present)
Yukihiro Iwase
Director and Senior Managing Executive Officer
Born November 20, 1955
Apr. 1979 Joined AICA Kogyo
Apr. 2002 Oversight of Tokyo Metropolitan
Area No. 2 Sales
Apr. 2003 Executive Officer
Apr. 2006 Oversight of Tokai-Hokuriku Sales Feb. 2009 Oversight of Kyushu Sales
Jun. 2010 Senior Executive Officer Apr. 2011 Head of the Construction
Materials Company
Jun. 2011 Director
Apr. 2015 Head of the Building & Housing
Materials Company (present)
Jun. 2016 Managing Director
Apr. 2018 General Manager, Sales
Administration Division (present)
Jun. 2018 Director (present) and Senior
Managing Executive Officer (present)
Ryoji Mori
Director and Managing Executive Officer Born September 29, 1959
Apr. 1982 Joined AICA Kogyo
May 2000 General Manager, Laminates Production Dept. Apr. 2006 General Manager, Production Administration
Dept., Construction Materials Company
Oct. 2009 General Manager, Production Administration
Dept., Chemical Products Company
Jun. 2011 Executive Officer
Jun. 2013 Senior Executive Officer Jun. 2015 Director (present)
Jun. 2018 Managing Executive Officer (present) Apr. 2019 Responsible for Safety and Environment Dept.
(present), Responsible for Purchasing Dept.
Apr. 2020 Deputy Head of Construction and Housing
Materials Company (present), Responsible
for Technology, Construction and Housing
Materials Company (present), General Manager,
Production Administration Dept., Construction
and Housing Materials Company (present)
Kenji Ogura
External Director Born October 1, 1947
Apr. 1970 Joined Sony Corporation
Oct. 1988 Director and General Manager,
Administration Dept., Sony
Nagasaki Co., Ltd.
Jun. 1995 Director and General Manager,
Administration Dept., Sony
Kokubu Co., Ltd.
Oct. 1997 Director and General Manager,
Administration Dept., ST Liquid
Crystal Display Corporation
Jun. 2005 Representative Director and
President, C-CUBE Corporation
Jun. 2012 External Auditor, Cool. revo Inc. Jun. 2014 External Director, AICA Kogyo
(present)
Jun. 2015 External Director, Cool. revo Inc.
(present)
Satoshi Toudou
Director and Senior Managing Executive Officer
Born August 16, 1957
Apr. 1980 Joined The Tokai Bank, Ltd.
Apr. 2009 Joined AICA, General Manager, Financial Planning Dept. Jun. 2009 Executive Officer
Jan. 2010 General Manager, General Planning Dept. Jun. 2010 Director
Apr. 2013 General Manager, Overseas Business Dept. Jun. 2014 Managing Director
Apr. 2017 Responsible for Financial Administration Dept. (present), Responsible for Logistics Dept. (present)
Apr. 2018 Responsible for Operations Administration Dept. (present)
Jun. 2018 Director (present) and Senior Managing Executive Officer (present)
Apr. 2019 Responsible for Information Systems Dept. (present)
Mar. 2020 General Manager, Corporate Planning Dept. (present)
Nobuyuki Omura
Director and Managing Executive Officer Born April 7, 1964
Apr. 1988 Joined MITSUI & CO., LTD. Jan. 2009 Joined AICA Kogyo
Apr. 2009 General Manager, Overseas Business Dept.
Jun. 2009 Director
Apr. 2011 General Manager, New Business Office
Apr. 2015 Director and Chairman, AICA Asia Pacific Holding Pte. Ltd.
Jun. 2017 Managing Director
Apr. 2018 Head of the Chemical Products Company
Jun. 2018 Director (present) and Managing Executive Officer (present)
Apr. 2020 Head of the Specialty &
Performance Materials Company (present)
Kenji Ebihara
Director and Managing Executive Officer Born April 15, 1967
Apr. 1991 Joined AICA Kogyo
Apr. 2009 General Manager, Chemical Development Dept., R&D Center
Oct. 2010 Manager, Jimokuji Laboratory, R&D Center
Apr. 2013 Director, R&D Center
Apr. 2015 Head of Specialty & Performance Materials Company
Jun. 2017 Executive Officer
Jun. 2018 Senior Executive Officer
Apr. 2019 Managing Executive Officer (present) Jun. 2019 Director (present)
Apr. 2020 Head of the Chemical Products
Company (present), Deputy General Manager, Sales Administration Division (present)
Ayako Shimizu
External Director Born June 6, 1972
Apr. 1999 Registered as attorney, Ishihara Law Office (present)
Jun. 2014 External Auditor, SYNCLAYER, Inc. (present) Apr. 2015 Deputy Chair, Aichi Bar Association
Director, CHUBU Federation of Bar
Associations
Apr. 2016 Member, Aichi Dispute Coordinating Committee (present)
Apr. 2017 Member, Nagoya City Information Disclosure Screening Commission (present)
Jul. 2017
Member, Aichi Prefecture Committee for Adjustment of Construction Work Disputes (present)
Jan. 2018 Judicial Commissioner (present)
Apr. 2019 Mediator/Arbitrator, Dispute Resolution Center, Aichi Prefecture Bar Association
(present)
Dec. 2019 External Director, MTG Co., Ltd. (Member of Audit and Supervisory Committee)
(present)
Jun. 2020 External Director, AICA Kogyo (present)
Directors who are members of the Audit and Supervisory Committee (3 male, 0 female)
Terutoku Iwata
Director (full-time member of Audit and Supervisory Committee) Born June 10, 1954
Mar. 1977 Joined AICA Kogyo
Apr. 2002 Head of Electronic Materials Company, Executive Officer
Jun. 2004 Director
Oct. 2004 Responsible for Logistics Dept. Apr. 2005 Head of the Construction
Materials Company
Oct. 2006 Director, No. 1 R&D Center Jun. 2008 Managing Director
Apr. 2013 Head of the Building & Housing Materials Company
Jun. 2015 Full-time Auditor
Jun. 2020 Director (full-time member of Audit and Supervisory Committee) (present)
Masashi Miyamoto
External Director (member of Audit and Supervisory Committee) Born February 8, 1956
Apr. 1978 | Joined Konishiroku Photo |
Industry Co., Ltd. (today's | |
KONICA MINOLTA, INC.) | |
Oct. 1985 | Joined Ito Accountants Audit |
Firm | |
Mar. 1989 | Registered as Certified Public |
Accountant (CPA) | |
Jul. 2005 | Senior Partner, Chuo Aoyama |
PwC | |
Aug. 2007 | Managing Partner, Azusa Audit |
Firm (today's KPMG AZSA llc) | |
Sep. 2010 | Director, KPMG AZSA llc |
Sep. 2014 | Auditor, KPMG AZSA llc |
Jul. 2018 | Director, Miyamoto Masashi CPA |
Office (present) | |
Jun. 2019 | External Auditor, AICA Kogyo |
Jun. 2020 | External Director, AICA |
Kogyo (Member of Audit and | |
Supervisory Committee) (present) | |
External Director, Meito Sangyo | |
Co., Ltd. (Member of Audit and | |
Supervisory Committee) (present) |
The reasons for the appointment of external directors are as follows.
Duties
External DirectorExternal DirectorExternal Director/ Member of Audit and Supervisory
CommitteeExternal Director/ Member of Audit and Supervisory
Committee
Name
Kenji Ogura (Independent
Director)
Reason for Appointment
Kenji Ogura has extensive experience and knowledge as a corporate executive, which we believe he will be able to leverage in enhancing AICA's management structures.
Ayako Shimizu (Independent
Director)
Ayako Shimizu will be able to leverage her exten-sive expert knowledge and experience as an at-torney in the supervision of AICA's management. We also believe that, as an external director, she will be able to offer advice based on diversity per-spectives.
Because he has no background at any of AICA's sub-sidiaries, major shareholders, or major trading partners, he has no particular stake in AICA, and we believe that no conflict of interest with general shareholders would arise. For these reasons, he has been designated as an Independent Director.
Kiyoshi Katagiri (Independent
Director)
Masashi Miyamoto
(Independent
Director)
Masashi Miyamoto has extensive expert knowl-edge and experience as a certified public ac-countant. We believe that he will be able to offer advice and oversight to the company's manage-ment overall as an external director and member of the Audit and Supervisory Committee.
Kiyoshi Katagiri
External Director (member of Audit and Supervisory Committee) Born September 20, 1946
Apr. 1969 Joined Nippon Telegraph and
Telephone Public Corporation (today's Nippon Telegraph and Telephone Corporation)
Apr. 1994 Vice President Tokai Branch
Nippon Telegraph and Telephone Corporation
Jul. 1997
Advisor and General Manager, Corporate Planning Office, C-CUBE Corporation
Jun. 1998 Senior Managing Director, C-CUBE Corporation
Jun. 1999 Representative Director and President, C-CUBE Corporation
Jun. 2011 Director and Counsellor, C-CUBE Corporation
Jun. 2017 Representative Director and President, MYPLANET Co., ltd.
Jun. 2018 External Auditor, AICA Kogyo Jun. 2020 External Director, AICA
Kogyo (Member of Audit and Supervisory Committee) (present)
Reason for Designation as Independent Director
Because he has no background at any of AICA's sub-sidiaries, major shareholders, or major trading partners, he has no particular stake in AICA, and we believe that no conflict of interest with general shareholders would arise. For these reasons, he has been designated as an Independent Director.
Kiyoshi Katagiri has been involved in corporate management and has extensive experience and knowledge as a business owner. We believe that he will be able to offer advice and oversight to the company's management overall as an ex-ternal director and member of the Audit and Supervisory Committee.
Because he has no background at any of AICA's sub-sidiaries, major shareholders, or major trading partners, he has no particular stake in AICA, and we believe that no conflict of interest with general shareholders would arise. For these reasons, he has been designated as an Independent Director.
Because he has no background at any of AICA's sub-sidiaries, major shareholders, or major trading partners, he has no particular stake in AICA, and we believe that no conflict of interest with general shareholders would arise. For these reasons, he has been designated as an Independent Director.
Interview with External Directors
I want to make proposals that will lead to AICA's sustainable development and growth
While maintaining the minimum functions ofthe previous Board of Auditors, we will further strengthen the relationship between the Board of Directors and the Audit and Supervisory Committee
Kenji Ogura
External Director
(Chair, Governance Committee)
Kiyoshi Katagiri
External Director
(Member of Audit and Supervisory Committee)
Q
What do you see as AICA's strengths?
Ogura: I believe that it is its technological strengths, evidenced by the high regard with which the company is held within the industry. Its mainstay product, high pressure laminate (HPL), which has captured a large market share, came about because of the core technologies it had cultivated in its many years of developing adhesives. Those technological strengths have since given rise to second and third hit products. Another of AICA's major strengths is the robustness of its financial position in maintaining a high capital adequacy rate and self-financing its M&As.
Katagiri: I think its speedy technological development capabil-ities are a major strength. R&D is carried out in a position close to the users, and its product development takes careful account of the needs of society. Launching a product on the market is not the end, and its ability to keep improving its products is another strength. It also provides a stable supply of high-quality products, which has allowed it to build relationships of trust with end users. When I became an Auditor two years ago, I was struck by how my impression of the company from the outside differed very little from what it was really like.
Q What is your view of the Board of Directors?
Ogura: The Representative Director, who serves as Chair, does not give his own opinion at first, but instead listens carefully to the opinions of the other Directors before final decisions are made, which I think is an excellent, honorable way of running the Board. However, I do find that, with many of the motions on the agenda, while they are very detailed and easy to understand, it is difficult to discern the proponents' intentions. If the propo-nents approach the Board of Directors with a determination toobtain approval, and the individual Directors giving that approv-al actively express their opinions, the Board has the potential to become a place for human resources development that will foster the next generation of executives. The internal directors also serve concurrently as executive officers and are each re-sponsible for their respective business divisions, but I would like to see them express their opinions more on motions proposed by divisions other than their own. If the directors could increase
their own awareness that they are in a position of approving and overseeing all motions and that they have the responsibility and authority to express their opinions, I believe it will help to strengthen the company's governance. From my own position as an external director, I personally want to make proposals that will lead to AICA's sustainable development and growth.
Katagiri: Agenda items are submitted in an appropriate and timely manner and there is no sense that important matters are being progressed without us knowing about them, so I believe that the Board is functioning adequately. The meetings do notbecome mere formalities and there is lively discussion of each of the items on the agenda. However, as Mr. Ogura just men-tioned, the Board of Directors should be used as a place for hu-man resources development. First, I would like the proponents to approach their presentations with inspiring materials that clearly outline the background and objectives of their motions. If they do that, their arguments will become much clearer, and it will enrich the discussion among the Board. It would be better if, when the directors with responsibility for the proponents have them prepare their presentation materials, they do so with the sense that they are nurturing their own successors.
Q What do you think is the role of the Governance Committee?
Ogura: I do not see any problems with the current structure when viewed against the five principles of the Governance Code. However, to improve the supervisory functions of the Board of Directors, I do believe there is a need to pursue reforms aimed at the separation of business execution and supervision. I think that the structure could be improved by reforming the operations of the Management Meeting and the Board of Directors a little more,such as entrusting the authority for business execution to the President and Executive Officers, strengthening the examination and approval authority for business execution of the Management Meeting, and having the Board of Directors dedicated to the ex-amination and approval of more important matters. From the po-sition of the Governance Committee, I hope that we can give advice that will lead to the development of that kind of structure.
Q What do you think is the role of the Audit and Supervisory Committee?
Katagiri: From the position of Auditors, we are required to check legality and crisis management. Assessments of future impact tend to be somewhat generous when performed from the inside, so I have stated my opinion that measures should be put in place promptly from the assumption of worst-case scenarios.
On June 23, 2020, we will transition to an Audit and Supervisory Committee. While maintaining the minimum functions that the Board of Auditors has had until now, I want to strengthen theCommittee's relationship with the Board of Directors and speak up in ways that will raise corporate value, thus helping to benefit shareholders. I also believe that it is the role of the Audit and Supervisory Committee to supervise and guide the company to maintain highly transparent management that discloses informa-tion accurately in both good times and bad times. We will coor-dinate closely with the Overseas Planning Department launched in April and strengthen governance at our overseas sites as well.
Q What are your expectations of AICA going forward?
Ogura: The Japanese construction market, which is AICA's ma-jor field of business, is clearly shrinking, so to ensure profitability, the company will absolutely need to increase the percentage of its sales in overseas markets. In recent years, the Chemical Products Business has been leveraging M&As to make steady inroads into overseas markets, but the Chemical Products Business has a lower earning capacity than the Construction Materials Business. The key going forward will be how well AICA can pursue overseas expansion in its more profitable Construction Materials Business. It is gradually developing a platform through the commissioning of new plants and the ac-tive use of M&As, so the challenge will be how well it can get the business on track. This is where my expectations lie. AICA's core technologies are in the Chemical Products Business. Inrecent years, however, growth of that business in Japan has been sluggish. Losing those foundations would be a major loss for the company, so I hope that it will concentrate its efforts on rebuilding them.
Katagiri: I have great expectations for the future development of its overseas business, and I believe that AICA also has a role to play in the development of the Asian region. I look forward greatly to its development of products that take advantage of the infinite potential of the power of chemistry. I also have hopes for the further evolution of AS Products that solve social issues, such as AICA Virutect, the high pressure laminate (HPL) with embedded antiviral agents that was launched last year. I hope AICA will place further efforts into activities aimed at the SDGs and that it will pursue them with more concrete targets.
This article is based on an interview conducted on June 5, 2020.
Compliance
Basic Thinking on Compliance
Additional information about compliance is available on the AICA Kogyo website. (Only Japanese)
http://www.aica.co.jp/company/environ/compliance/
The AICA Group is firmly committed to complying with local laws and regulations and conducting its business activities eth-ically at all of its sites in Japan and overseas. The AICA Group Code of Conduct forms the foundation of the Group's com-pliance program. It has been established with the objective of realizing our Corporate Philosophy and Business Plan in accor-dance with our Corporate principle of Challenge & Creation. We have also established Action Guidelines, which set out specific standards for conduct in accordance with the Code of Conduct.
To raise awareness about compliance among employees, we use the AICA Group Code of Conduct and Action Guidelines to hold annual training in individual workplaces at all of our sites in Japan and overseas, including Group companies. In this train-ing, we thoroughly instill in our employees a consciousness of
● Training conducted in FY2019
Training for sales offices Training for factories
Training for administrative divisionsNew manager training New employee training
Respect for human rights
8 times/year 21 times/year Once a year
Once a year Once a year
The AICA Group supports and respects international norms concerning human rights, such as the Universal Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the UN Guiding Principles on Business and Human Rights. The AICA Group Code of Conduct clearly states our guidelines regarding respect for human rights to fulfill our corporate responsibilities.
Corporate Ethics Committee
The AICA Group has established a Corporate Ethics Committee whose objectives include the development and pro-motion of necessary policies for compliance, and the investiga-tion, confirmation, and implementation of corrective action in the event of a whistleblowing report being made to the internal whistleblowing hotline, Corporate Ethics Committee Window.
The Corporate Ethics Committee promptly investigates and addresses all whistleblowing reports and, where necessary, takes corrective action. The details of all such cases are report-ed to the senior executives and the members of the Audit and Supervisory Committee on a regular basis.
the positioning of the Code of Conduct and Action Guidelines and the significance and necessity of compliance. We confirm employees' understanding through training reports, and we also confirm any requests made by employees.
Further, the Corporate Ethics Committee, Legal Department, Internal Audit Office, Safety and Environment Department, and Quality Assurance Department play a central role in traveling around to all of the sales offices, plants, Group companies, and other sites to conduct harassment education, including for managers, and compliance training for operational staff, and to educate employees about the importance of compliance. Any issues discovered in the course of these visits are incorporated into improvement activities throughout the entire company.
● AICA Group Code of Conduct Basic Principles
[1] Compliance with laws and regulations
[6] Proper information disclosure
[2] Respect for human rights
[7] Employment, labor, and labor-management relations
[3] Harmony with society
[4] Fair trade
[8] Protection of company information and property
[5] Reassurance and trust of customers
[9] Environment and safety
We have established work rules that are compliant with the laws of the individual countries we operate in. We manage working hours and assign workers in an appropriate manner to ensure that there are no excessive working hours or forced labor. When we employ new workers, we ask them to present ID to confirm their age, to prevent child labor.
Internal Whistleblowing System
To ensure that potential risks of breaches of workplace mor-als, such as infringements of laws and company regulations, bribery and corruption, and harassment, can be addressed promptly, the AICA Group has established an internal whis-tleblowing hotline, Corporate Ethics Committee Window, inside the company and at a law firm outside the company.
Employees of the AICA Group, both in Japan and overseas,are able to report to or seek advice from the Corporate Ethics Committee Window about any problems or concerns they may have regarding corporate ethics and compliance. They can do so by telephone or e-mail at any time, without worry-ing that they themselves will be disadvantaged for having done so. Anonymity is assured in this system, so anonymous whis-tleblowing reports are accepted.
● Concept diagram: Corporate Ethics Committee and whistleblowing system
Corporate Ethics Committee
Responsible for Financial Administration Department
Manager, Internal Audit Of ce
Secretariat (General Manager,
Human Resources Dept.)
Corporate lawyer (observer)
[Roles]
(1) Planning and promotion of measures necessary for compliance in the AICA Group
(2) Investigation, con rmation, and corrective action concerning whistleblowing cases presented to the Corporate Ethics Committee Window and/or cases that single Group companies are unable to solve.
(3) Deliberation and proposals regarding the application of disciplinary action in the event of problems that arise from a compliance perspective
President
*Number of cases brought to Corporate Ethics Committee Window in FY2019: 6
Anti-corruption Policy
AICA Kogyo endorses the ten principles of the United Nations Global Compact. Believing the use of power invested in oneself for one's own personal gain, either financial or non-financial, to be corruption, we are committed to the prevention of all forms of corruption, including bribery to or from government officials or suppliers, embezzlement, money laundering, and obstruction of justice, or forcing others to commit such acts.
We have put this policy into writing in the form of the
Employees
document, Preventing Bribery and Corruption - For Fair Trading, which we have distributed to all employees under the signa-ture of the President of AICA Kogyo. No. [4] Fair and Equitable Trading in the AICA Group Code of Conduct also states clearly that we will not be involved in corruption. Training is held ev-ery year for individual workplaces at all of our sites in Japan and overseas, including Group companies, using the Code of Conduct.
Risk Management
Basic Thinking on Risk Management
To ensure the mitigation of losses due to unforeseen circumstances, certain departments have been as-signed to address the various risks surrounding the management envi-ronment. The necessary rules and guidelines have been established and risk management is conducted through the procedures for approval via circulation of proposals. Reports on risk assessment are made reg-ularly to the Board of Directors and Audit and Supervisory Committee.
Security and Disaster Preparation
● Risk Management Rules and other related rules
Regulation | Details |
Risk Management Rules
Earthquake and Disaster Prevention RulesWind and Flood Disaster Prevention RulesProduct Safety Management RulesMS Emergency Response RulesInformation Management RulesAction Plan for New-strain Influenza Countermeasures
The AICA Group uses many hazardous substances as raw materials or in supplementary ways to create useful products. Any mistakes in the handling of these hazardous substances could cause a major accident, which could have major impacts on the health of employees, the functions of production equip-ment, and the local community.
Individual production sites partner with local fire departments to conduct disaster preparation training.
Business Continuity Plan (BCP)
The AICA Group has formulated a Business Continuity Plan (BCP) with the objective of ensuring that important business op-erations are not disrupted in the event of a major disaster or ac-cident, or, if business activities are disrupted, ensuring that im-portant business operations are resumed by the target recovery time with the remaining capacity available. Under this plan, the Group implements a range of responses at times of emergency.
The Great East Japan Earthquake Disaster of March 2011 prompted the establishment of the BCP Committee, which has engaged in formulating BCPs, as well as playing a central role in strengthening disaster preparation measures. BCP de-velopment began with the key production sites in Japan and overseas. Those sites that have completed their plans conduct regular BCP training.
Taking lessons from the flood damage at AICA's Hiroshima
● Major initiatives in FY2019
AICA Kogyo Co.,
Ltd. Nagoya Plant
Response in the face of a management crisisResponse in the event of earthquake disasterResponse in the event of storm or flood damage disaster
Response to product claims in the event of an accident
Response in the event of a factory fire or environmental problem
Response in the event of a leak of confidential information
Response in the event of an outbreak of a new strain of influenza
In October 2019, joint training was conducted with the Nishikasugai Fire Department on the premise of a major earthquake striking the area.
In addition to evacuation training and fire extin-guishing training, participants were given an ex-perience of smoke from a fire and demonstra-tions and instructions for CPR and lifesaving procedures.
Plant during the torrential rain of July 2018, BCP training was conducted on the scenario of a flood disaster at four sites in Japan (AICA Kogyo's Nagoya, Jimokuji, and Hiroshima Plants and AICA-TECH Kenzai Co., Ltd.'s Nagoya Plant) assumed to have a high risk of flood damage according to a hazard map. We are also expanding the scope of the roll-out of BCP train-ing with the cooperation of our overseas Group companies and major production subcontractors.
Going forward, by making the contents of the disaster sce-narios on which the training is based more detailed, we will con-duct further training that delves deeper into what actions should be taken when and by whom. We will also clarify the competen-cies required at times of disaster and place efforts into human resources development with the aim of prompter restoration of operations and alternative production at such times.
Hiroshima floods
● Major initiatives regarding BCP in FY2019
Name of site
Nagoya Plant, AICA Kogyo Co., Ltd.
Jimokuji Plant, AICA Kogyo Co., Ltd.
Hiroshima Plant, AICA Kogyo Co., Ltd.
Nagoya Plant, AICA-TECH Kenzai Co., Ltd.
Tanba Plant, AICA Kogyo Co., Ltd.
Isesaki Plant, AICA Kogyo Co., Ltd.
Fukushima Plant, AICA Kogyo Co., Ltd.
Headquarters Plant, AICA Interior Kogyo Co., Ltd.
AICA Harima Kogyo Co., Ltd.
Akeno Plant, AICA-TECH Kenzai Co., Ltd.
Ichikawa Plant, AICA-TECH Kenzai Co., Ltd.
AAPH* Group Sites
Location
Kiyosu, Aichi PrefectureAma, Aichi Prefecture
Mihara, Hiroshima PrefectureAma-gun, Aichi Prefecture
Tanba, Hyogo Prefecture
Isesaki, Gunma Prefecture Iwase-gun, Fukushima Prefecture
Komaki, Aichi Prefecture
Kasai, Hyogo Prefecture
Chikusei, Ibaraki Prefecture
Kanzaki-gun, Hyogo PrefectureSingapore, etc.
AICA Kogyo's Hiroshima Plant sustained severe flood damage due to torrential rainfall in the region in July 2018. After the disaster, the plant's response began with confirming the safety of its em-ployees. Based on the BCP plan and initial response list that had been previously established, information was then collected about raw material suppliers and customers, and the entire staff put all of their efforts into restoration of operations, under the direction of the President of AICA Kogyo. As a result, on July 21, just two weeks after the flooding on July 6-7, production of some products was resumed, and from September 3, about two months after the disaster, production had been resumed for almost all models. The factory had been insured for the damage, so we were able to keep the impact on business performance to a minimum.
Information Security
Through the implementation of our Information Management Rules and Information Management Committee, we have es-tablished rules for the use and management of information, and we strive to strengthen our information security frameworks.
Regarding personal information, which involves the privacy of our customers, we have reviewed our management categories and security rules and reflected that review in the Information Management Regulations.
BCP training assuming flood disaster
Confirmation of roles in Phase 0 (before and immediately after disaster)
(Formation of flood prevention team, securing of supplies in an appropriate location, production of equipment (parts) lists, etc.)Training assuming earthquakePrepared initial response list in event of fire at all sites except AICA Hatyai. Conducted first training sessions at AICA Malaysia and AICA Singapore.
*AICA Asia Pacific Holding Pte. Ltd.
Photo taken July 7, 2018 Scene of the flooding
We have also developed a response manual that is put into practice in the unlikely event of an information leak.
We are also striving to instill in our employees a firm con-sciousness of information management through initiatives such as internal information security audits, which are designed to confirm the state of information management within the com-pany, and ongoing training.
● Case study of implementation of security measures at AICA Kogyo Co., Ltd.
● Employee ID authentication is used for log-in authentication to prevent unauthorized access by third parties. The password for logging into the company system is also changed regularly.
● The security level of external networks has been diagnosed by second parties (interested parties, security management subcon-tractors) and assessed as being without problems.
● We conduct information security audits of our major systems de-velopment subcontractors to confirm the state of their information security implementation and management.
Matters regarding holding of training
Photo taken July 12, 2018 Warehouse after floodwaters receded
● Data on laptop computers that can be taken out of the company is encrypted and the laptops have also been connected to secure networks.
● Updates of anti-virus software and security patches are sent to PCs.
● We have installed and run core servers in our data center, includ-ing for BCP-based responses.
● We reinforce information management through a full-scale ban on the use of USB memory sticks on PCs connected to the company network.
Foundations of AICA
Additional information about human resources is available on the AICA website.
(Only Japanese)
Human resourceshttp://www.aica.co.jp/company/environ/resource/
Labor-management relations
Basic Thinking on Labor-Management Relations
The AICA Kogyo Labor Union was formed in May 1947 and has remained active since then. The union is a partner and ex-cellent supporter of the company that has shared in the joys and sorrows of AICA Kogyo for many years. The company cher-ishes the relationship of trust that it has built up with the union and has maintained favorable labor-management relations.
To deepen mutual understanding, the top three executives of the union and the Human Resources Department hold meet-ings once a month to exchange information. The union also meets with the senior executives several times a year, including
Employee survey
As social values have become more diverse, how employees who work at a company think about that company and their mindset toward their work have changed and diversified.
Recognizing that employee awareness surveys are vital to the further growth and development of the company, we ask an external organization to hold such surveys on the company's behalf on a regular basis. Following on from the last survey in 2016, a survey was conducted in July 2019.
The survey company reported that "General Satisfaction,"
at labor-management negotiations, to discuss corporate policy, the progress of the Mid-Term Business Plan, the general situ-ation in individual businesses, and the various programs and schemes.
Based on the Code of Conduct, AICA sites in the various countries and regions also respect freedom of association, the right to organize, and the right to collective bargaining as the rights of their employees, and strive to build favorable relations with employees through close communication.
which indicates the degree of employees' satisfaction with the company, was "slightly higher" than the average for common companies, both in the 2016 and 2019 surveys. Of course, there were variations in the results according to age group and occupation. We will analyze the details of these findings and incorporate them into our various policies, including our human resources programs. We will also hold regular surveys into the future and implement measures to raise employee satisfaction from a medium to long-term perspective.
Human resources development
Basic Thinking on Human Resources Development
AICA Kogyo nurtures people who have a strong awareness of personal growth and their futures, and who strive forceful-ly toward the corporate principle of "Creation & Challenge." Recognizing that employees are an important presence who
Training Schemes
A variety of human resources programs is available. They range from follow-up programs for prospective employees to grade-based training and self-development assistance to en-courage employees' steady career advancement.
For new recruits, a training program has been introduced to cultivate "independent personnel" who are able to think and act for themselves. This program is conducted over a period of three years from the commencement of their employment. A combination of OJT and mentor programs is also used, with the Human Resources Department and the divisions to which the new recruits are assigned working in tandem to cultivate the new employees.
will transform the company and raise our corporate value, we are placing efforts into human resources development that will allow every individual employee to demonstrate their strengths to the fullest.
We are also focusing efforts on the development of global human resources. This entails the incorporation of language training in the second and third years of the new recruit training, as well as opportunities to experience meetings with overseas Group companies via video teleconferencing systems. We have also established an overseas trainee scheme, which provides opportunities to work overseas, such as being dispatched to overseas Group companies.
We have also established correspondence education schemes and schemes for obtaining public qualifications, and we support employees' individual study endeavors by covering costs and granting bursaries.
● Training framework
Grade-based trainingOccupation-based group trainingWorkplace trainingSelf-development assistance
Assistance to obtain qualifications
Prior to joining
General grade
Correspondenceeducation prior to joining the company
Online English conversation
Correspondence educationHazardous materials engineer / Health and safety manager / Adhesives management engineer / Forklift operator /
Construction project management engineer / TOEIC, etc.
Mid-level grade
New manager training
Plant manager training
Manager grade
Next-generation executive training
Diversity / Work-life balance
Basic Thinking on Diversity and Work-life Balance
We promote diversity in response to the globalization of busi-ness and the diverse needs of the market. In the area of women's participation in particular, we launched a Women's Participation Promotion Project in June 2013 and have focused efforts on initiatives and the development of an environment in which the power of women can be put to use in the management of the
● Certification Status
Certification as Company Promoting Women's Participation by City of Nagoya (January 2016)
This is a program that certifies companies en-gaged in initiatives to allow women to shine in their organizations and that presents awards to companies with particularly outstanding initia-tives in this area.
company.
The name of this initiative was changed to the Diversity Promotion Project in FY2018 and we are working to promote the establishment of foundations in which more diverse person-nel can participate actively in the workplace.
"Kurumin" certification from Ministry of Health, Labor and Welfare (Feb. 2016)
Companies that meet certain criteria, including as-sisting employees with raising children, are certified by the Minister of Health, Labor and Welfare and are able to use the "Kurumin" logo on their advertising, products, and other media.
● Diversity Promotion Activity Goals (Act on Promotion of Women's Participation and Advancement in the Workplace)
Target Initiatives Period: April 1, 2019 - March 31, 2022
5.8% (average for other manufacturing industries) or more
[2] Increase percentage of female managers
[3] Improve rate of recruitment of people with disabilities*
[4] Cultural reform
2.3% or more
3.1% (7 female managers of a total of 223 managers)
2.35%
Percentage of paid leave taken: 70% or morePercentage of paid leave taken: 66.7% (FY2019 actual result)
*According to statutory calculation methods
Expansion of work-life balance assistance scheme
At a time when both spous-es work in a growing number of households, and with nursing care for middle-aged and older households developing into a so-cial problem, we are working to expand our programs to assist employees to balance their home lives and work without interrupting their careers as much as possible, by responding flexibly to diverse work styles.
● Work-life balance assistance scheme
Comeback Entry
Scheme
We have established a Comeback Entry Scheme for employees who have been forced to resign for reasons such as caring for small children or elderly family mem-bers or their spouse's transfer. Once the reason for their resignation no longer exists and they are in a position to return to work, they are able to do so after a recruitment selection process. (Registration scheme/within five years after resignation)
Revision of scheme for shortened working hours for workers with small childrenRevision of time-shift working hours scheme
The period in which this scheme, which allows eligible employees to shift their start and finish times in 30-minute increments by up to one hour before and after the set time, has been extended from up to the child reaching school age to the child's graduation from elementary school, improving the working environment to make it easier for those employees to work full-time.
The period in which employees are able to take advantage of this scheme has been extended from up to the child reaching school age to the end of the child's third year of elementary school. This has made it easier for employees to use the scheme to suit their personal circumstances and enabled them to overcome the "1st-grade barrier."
Re-employment Scheme, Employment of People with Disabilities
The Revised Act on Stabilization of Employment of Elderly Persons mandates the provision of employment opportunities up to the age of 65 years. Parts of the Act were revised on April 1, 2013 against a background of the sharp progression of Japan's declining birthrate and population aging.
With the aims of responding to these legislative revisions, rais-ing employee motivation, and guaranteeing their lifestyles, we have made major revisions to our Re-Employment Scheme. We will continue to develop an environment in which our employees
● Trends in newly engaged employees under the re-employment scheme at AICA Kogyo Co., Ltd.
FY2017 | FY2018 | FY2019 | FY2017 | FY2018 | FY2019 |
18 | 27 | 14 | 21 | 22 | 24 |
Work Style Reform |
As the issue of excessively long working hours has become a social problem and the entire nation is pursuing work style reform, we launched our own Work Style Reform Promotion Project on April 1, 2017. We are working actively to create a cul-ture and change mindsets to discourage employees from work-ing excessively long hours. Initiatives include "No Overtime" days and the reduction of overtime. In March 2020, we urgently introduced work-from-home due to the impact of the spread of the novel coronavirus, COVID-19. Taking this opportunity, we launched a Work Improvement Sub-Committee in April 2020 with the objective of promoting further diversification of work styles. Through C&C activities (Seepage 29), we are making improvements to equipment and operations, pursuing a shift to multi-skilled workers, and striving across the entire company to reform operations to cut down on long working hours. We are also promoting scheduled taking of paid leave and the enhance-ment of our childcare and nursing care assistance schemes.
can work with peace of mind.
Further, with the aim of ongoing employment of people with disabilities, we have identified the types of work that people with disabilities are able to perform and are working to firmly estab-lish them in the workplace. With a view to further increasing the number of people with disabilities whom we employ, we will continue to engage actively in measures such as recruitment interview sessions for people with disabilities.
● Trends in number of employees with disabilities at AICA Kogyo Co., Ltd.
● State of paid leave consumption at AICA Kogyo Co., Ltd.
Average rate of leave taken
56.0%
61.7%
66.7%
*Target period
Until FY2017: September 16 of previous fiscal year to September 15 of current fiscal year
From FY2018: March 16 of previous fiscal year to March 15 of current fiscal year
*Target employees
Employees of AICA Kogyo Co., Ltd., excluding people on temporary assignment, child-care leave, and leave-of-absence, and part-time and casual workers.
Occupational Health and Safety
Basic Thinking on Occupational Health and Safety
To maintain a sound foundation for the company and achieve sustainable growth, it is important that we strive to maintain the health of each individual employee and to improve workplace safety. We recognize that our business activities also have an impact on the health and safety of contractors who work on our sites and residents of the surrounding area, and we are striving to maintain the health of stakeholders and to improve the safety of our workplaces and surrounding environments.
Pursuant to the Industrial Safety and Health Act, we have
Prevention of Industrial Accidents
To ensure that the serious accident that happened at the Jimokuji Plant on January 17, 2006 is not forgotten, we have declared January 17 as All AICA Safety Day. Every year on All AICA Safety Day, a minute of silence is observed, and morning assembly has a safety theme at all workplaces. The AICA Group Occupational Health and Safety Convention also takes place on this day.
On the factory floor level, KYT (kiken yochi kunren or risk pre-diction training) activities, hiyari-hatto (near-miss) activities, and
● Industrial Accidents Situation
Target Scope | All AICA Group production sites in Japan |
established Health and Safety Committees at each of our sites. Based on environmental measurements and the findings of environmental diagnoses, we investigate and deliberate on im-portant matters that will form the foundation of measures for mitigating risks to workers and impediments to health.
Membership of the Health and Safety Committee is com-prised of managers and labor union members in equal numbers. Contractors who work on site are also included in meetings, and efforts are being devoted to further invigoration of communication.
risk-source improvement activities are conducted in the small-group activities (C&C activitiesP. 29). To enhance these low-key, steady efforts, from FY2018, the KYT activities being un-dertaken by the individual small groups are now being assessed under a point rating system. Pursuing improvements so that training is not just a formality, but will be something meaningful that leads to greater awareness of safety, we are striving to elim-inate industrial accidents.
Number of industrial accidents
(accidents)
*Total industrial accidents = non-lost-time accidents + lost-time accidents
20
20
15 10 5 0
2018
2015 2016 2017
2019 (FY)Total number of industrial accidentsLost-time accidents Target scope: All AICA Group production sites in Japan ① Newly consolidated in FY2015 ② Newly consolidated in FY2016
Breakdown of number of industrial accidents
(accidents)
FY2015 FY2016 FY2017 FY2018 FY2019
0 7 4 13 6
Fatal accidentsLost-time accidents
Of which, those involving people other than full-time employeesNon-lost-time accidents
0
0
0
0
3
2
7
6
1
0
3
6
10
12
10
12
Frequency rate* Trend
3
*Frequency rate = Number of fatalities and injuries caused by industrial accidents (excluding non-lost time accidents) x 1,000,000 ÷ Total work hours
Figures are for permanent employees
2
1
0
2019 (FY)
2015 2016 2017 2018
All AICA Group production sites in Japan (non-consolidated)All AICA Group production sites in Japan (consolidated)National manufacturing industry average
Severity rate* Trend
0.15
*Severity rate = Work-days lost x 1,000 ÷ Total work hours
Figures are for permanent employees
0.10
0.05
0
2019 (FY)
2015 2016 2017 2018
All AICA Group production sites in Japan (non-consolidated)All AICA Group production sites in Japan (consolidated)National manufacturing industry average
● Major initiatives in FY2019
Occupational Health and Safety
Convention (January 2020)
Plant manager training (January 2020)Global QEO Officer
Training (November 2019)
Attended by responsible officers of AICA Group production sites in Japan, and partner companies working on AICA premises. Presentations of case studies of industrial accident countermea-sures, awards for sites with zero accidents, sharing of trends in in-dustrial accidents and responses.
Attended by on-site managers of AICA Group production sites in Japan and partner companies working on AICA premises. Identification of challenges of on-site management and their solu-tions, discussion of invigoration of KYT activities as a means of raising safety awareness, and discussion of measures to strength-en safety management frameworks of partner companies working on AICA premises and thoroughly instill compliance.
Attended by responsible officers at plants, including overseas Group companies. Discussed thorough confirmation of safety when installing new equipment, innovations (signs, multiple languages, etc.) for drawing attention to safety among foreign-national workers, and raising safety awareness through dialogue with end workers.
Risk assessment
Risk assessment is a method for discovering potential risks and hazards in the workplace and eliminating or mitigating them. We conduct risk assessments under internal regulations based on our Occupational Health and Safety Management System at
Prevention of traffic accidents
We have a fleet of just under 300 company vehicles that are in use in our day-to-day operations. Only those employees who have been registered after their driving aptitude has been con-firmed are permitted to drive the company vehicles. In addition to traffic laws, we have also established our own Rules for Use of Company Vehicles in our efforts to prevent traffic accidents.
● Major vehicle accident responses
[1] Improvement of driving skills
AICA Group Occupational Health and Safety Convention
major AICA Group production sites in Japan. In the plants, we conduct risk assessment of chemical substances and pursue activities to eliminate and mitigate risk.
Accidents that occurred last fiscal year involved not only young employees in their 20s, but also veteran drivers. Fortunately, none of those accidents were serious, but there were accidents that involved other people, so we will continue to devote efforts to eliminating serious accidents and elevating driving skills.
We conduct skills classes for young employees and employees who have been involved in accidents to elevate their driving skills. In addition, their supervisors accompany them on a drive to check their driving proficiency.
[2] Mindset reform
Employees who have been involved in accidents are asked to submit a report that includes an analysis of the causes of the accident and improvement measures, in a bid to raise their awareness and prevent similar accidents from happening again.
[3] Sharing of accident examples
KYT (risk prediction training) sheets based on examples of actual accidents are distributed throughout the company to share examples and maintain a sense of tension.
● Traffic Accidents Situation
Target Scope | Accidents caused by AICA Kogyo Co., Ltd. negligence and negligence by both parties |
Trend in number of vehicle accidents
(accidents)
60
40
22
20
0
2015
Mental health
26
23
22
25
2016
2017
2018
2019 (FY)
In an economic environment of intensifying market competi-tion and rapid change, the stress felt by workers is only increas-ing, becoming a serious social issue.
We have put a variety of measures in place to maintain not only the physical health of our workers, but also their mental and emotional health.
Regular health check-ups
In addition to the health check-ups mandated by law, we also provide a combination of Lifestyle Disease Check-ups and Gynecological Check-ups tailored to employees' age, gender, and preferences. In this way, we are strengthening our
Number of accidents by type in FY2019
(%)
● Major mental health initiatives
Stress checksEstablishment of advice hotline
Held once a year since FY2016. The results are fed back to the individuals, and the findings fromanalysis of the results on a departmental level are fed back to the head of each department.
We have set up a mental and physical health advice hotline, which is run by an external organization. This service is widely advertised to employees on the company intranet.
employee health management functions. Since FY2014, the company has covered part of the cost of influenza vaccinations, including for family members, to step up efforts to prevent our workers contracting the flu.
Foundations of AICA
Environment
Additional information about the environment is available on the AICA website.
(Only Japanese)http://www.aica.co.jp/company/environ/plan/
Basic Thinking on the Environment
The AICA Group has developed an environmental manage-ment system based on ISO 14001, which we have incorporated into our original QEO Management System (P30) and put into practice.
To realize a sustainable society, we are actively engaged in the prevention of global warming (action on climate change is-sues) and the reduction of environmental impact (action on re-sources and pollution issues).
Recognitions of the risks to business
Amid growing concerns about global climate change, ex-treme weather events, and natural disasters, including rising temperatures and water shortages, we envisage that the follow-ing two phenomena could potentially have a particularly large impact on the business performance of the AICA Group.
We will strive to protect the environment and achieve harmony with local communities and deliver environmentally friendly products.
1. Creating products that are kind on both the environment and humans
2. Reduction of CO2 emissions
3. Reduction of industrial waste and effective use of water resources
4. Harmony with local communities
5. Compliance with laws and regulations
Environmental regulatory risk...Impact of climate change measures and the tightening of regulations regarding the use of chemicals and environmental protection
Large-scale disaster risk...Impact of a disaster of a scale that exceeds that envisaged in the BCP and that goes beyond the prepared countermeasures and annual training
Target scope: The target scope of each category is clearly stated. The breakdown of sites and locations is as follows.
● All AICA Group production sites in Japan: Aica Kogyo Co., Ltd., AICA Interior Kogyo Co., Ltd., AICA Harima Kogyo Co., Ltd., AICA-
TECH Kenzai Co., Ltd.
● All AICA Group production sites overseas: PT. AICA Indonesia, PT. Techno Wood Indonesia, KUNSHAN AICA KOGYO Co., Ltd., Shenyang
AICA-HOPE Kogyo Co., Ltd., AICA Laminates India Pvt. Ltd., Aica Laminates Vietnam Co., Ltd., AICA Asia Pacific Holding Group, Evermore Chemical Industry Group
Prevention of global warming (action on climate change issues)
Reduction of greenhouse gas emissions (energy saving)
● Basic Thinking
The prevention of global warming is a key issue in the pro-tection of the global environment. Extreme weather events are also increasing on a global scale. AICA Kogyo has sustained damage several times in recent years from disasters caused by such events, and we feel keenly that climate change is a major business risk.
Recognizing that taking more appropriate action is a matter of urgency, we are actively pursuing reductions of greenhouse gases, and we have declared a target of reducing emissions revenue intensity by 3% year on year every fiscal year until FY2030.
As an organization to promote the deliberation and imple-mentation of more concrete action, we launched the Climate Change Response Project in April 2020.
This project includes not only the environmental, production, facilities, and logistics divisions but also the development, sales, purchasing, and corporate planning divisions. They will work to propose drastic reduction measures.
The Project will coordinate with the CSR Committee to re-port on its activities regularly to the Board of Directors and strengthen the governance framework in our response to cli-mate change issues.
In May 2020, we declared our endorsement of the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)*. Going forward, based on the TCFD recommenda-tions, we will assess and analyze the risks and opportunities from climate change for the AICA Group, reflect them in our business strategies, and pursue information disclosure.
*The Task Force on Climate-related Financial Disclosures (TCFD) was established in 2015 by the Financial Stability Board (FSB) to promote the disclosure of climate-related financial information. In 2017, it announced its recommendations to encourage the disclosure of information regarding the financial impact of climate-related risks and opportunities, to assist investors to make appropriate investment decisions.
Endorsement of the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)
● Achievement Trends
● Targets and Achievements
Target Scope | All AICA Group production sites in Japan |
FY2019 Achievements | Causes of increase/decrease | FY2020 Targets | |
Greenhouse gas emissions revenue intensity | 5.6% year-on-year decrease | Reduction in defect rates, | 3% year-on-year decrease |
3% year-on-year reduction | 48.4 t-CO2/100 million yen | replacement of obsolete | 46.9 t-CO2/100 million yen |
49.7 t-CO2/100 million yen revenue or less | revenue | equipment for energy-saving effect | revenue or less |
● Major initiatives in FY2019 | |||
Company/Site Name | Location | Details |
FY2019 Targets
Ama, Aichi Prefecture
Jimokuji Plant
Tanba Plant Isesaki Plant
Tanba, Hyogo Prefecture Isezaki, Gunma Prefecture
Individual plants and sites
· Improvement of product defect rate
· Improvement of high-pressure steam feed efficiency
· Improvement of temperature control of overcoat drying kiln
· Switch to LED lighting
· Productivity improvements through restructuring of production equipment
· Review of boiler/compressor operations
· Replacement of crusher · Replacement of boiler · Replacement of compressor
· Replacement of boiler and steam trap
· Efficiency improvements through shorter heating times in deodorization equipment and more chillers in drying equipment
· Replacement of autoclave · Switch to LED lighting
· Reinforcement of heat insulation for steam pipes and boiler periphery
· Reduction in frequency of burner ignition in low-pressure boiler
· Promotion of switch to LED lighting · Improvement of productivity through reduction of defect rate · Promotion of power saving in processes
Disclaimer: From the FY2019 Report, the conversion coefficient used to calculate CO2 emissions at sales locations in Japan has been changed.
Target Scope | All AICA Group production sites in Japan / All AICA Group production sites overseas / AICA Group sales locations in Japan: 22 sales offices |
Trend in greenhouse gas emissions
(t-CO₂)
100,000
■ Production sites in Japan ■ Overseas production sites ■ Sales locations in Japan ① Newly consolidated in FY2015 ② Newly consolidated in FY2016 ③ Newly consolidated in FY2018 ④ Newly consolidated in FY2019
Trend in greenhouse gas emissions revenue intensity
(t-CO2/100 million yen)
80
60
40
20
57.9
53.4
50.0
51.3
48.4
0
2015
2016
Production sites in Japan
2017
2018
2019 (FY)
Trend in energy input
(TJ: Terajoules)
2,000
1,500
1,000
500
0
2019 (FY)
2015
2016
2017
2018
■ Production sites in Japan ■ Overseas production sites ■ Sales locations in Japan ① Newly consolidated in FY2015 ② Newly consolidated in FY2016 ③ Newly consolidated in FY2018 ④ Newly consolidated in FY2019
Trend in energy input revenue intensity
(TJ/100 million yen)
1.25
1.00
1.03
0.90
0.75
0.50
0.25
0
2015
2016
Production sites in Japan
1.01
0.97
0.88
2017
2018
2019
(FY)
Use of LCA
We have introduced Life Cycle Assessment (LCA) in the de-velopment of our products.
Our mainstay products, high pressure laminate (HPL), gener-ate less CO2 than artificial marble or PVC steel sheets, making them a more environmentally friendly product. Our construction
CO2 emissions from mining of raw materials to manufacturing stage （Kg-CO₂/m2）
20 15 10 5 0
Zinc-plated steel plate 1 mm thick
High pressure laminate (HPL) 1 mm thickPolyester decorative plywood 2.5 mm thick
Green Logistics
18.5
Acrylic polyurethane coated panel 4 mm thickArti cial marble 3 mm thick
● Basic Thinking
Reducing greenhouse gas emissions from transport is an-other challenge that companies must address. In the AICA Group, the logistics officers at major shipping sites throughout Japan are working together with the sales divisions on ongo-ing improvement efforts, including modal shift, improving the
● Targets and Achievements
Target Scope | Transport in Japan* |
FY2019 Targets
Usage intensity: 1% year-on-year decrease 43.67 kl/1 million t-km or less
● Achievement Trends
*Logistics in which AICA Kogyo Co., Ltd. is the shipper
FY2019 Achievements
1.5% year-on-year decrease 43.44 kl/1 million t-km or less
Target Scope | Transport in Japan* |
Trends in energy use intensity in transport
Causes of increase/decrease
Improvements to load efficiency through mixed load services on Tohoku Area trunk routes, establishment of new delivery sites for regular services (Fukushima, Higashihiroshima), reduction of secondary deliveries through expansion of main delivery areas (Osaka, wider Kanto area, Hokkaido, Gunma, etc.)
(kl/1 million t-km)
50
48
46
44
42
40
2015
Transport in Japan*
materials are also highly durable and have a long life cycle. In this respect, they would be described as environmentally friend-ly products.
Going forward, we will update the data used in calculations and raise the precision of those calculations.
Life Cycle Assessment (LCA) Approach
efficiency of truck freight, and depot organization.
We will continue to put various measures in place to reduce energy consumption (heavy oil equivalent) per freight metric ton-kilometers (t-km), which is a management index for this area.
FY2020 Targets
1% year-on-year decrease 43.00 kl/1 million t-km or less
2016
2017
2018
2019 (FY)
Basic Thinking on Reduction of Environmental Impact
Reduction of environmental impact (action on resources and pollution issues)
The AICA Group is engaged in the management of chemi-cals, reduction and recycling of industrial waste, and effective use of water resources with the objective of reducing our en-vironmental impact and using resources more effectively. We
Management of chemical substances
● Basic Thinking
We recognize that, as a manufacturer of chemicals, reducing the volumes of volatile organic compounds (VOCs) and other hazardous chemical substances that we release and transfer is an important responsibility of the company, and we are working on the reduction of substances subject to the PRTR Act*.
*A system whereby, under the Act on Confirmation, etc. of Amounts of Release of Specific Chemical Substances in the Environment and Promotion of Improvements to the Management Thereof, businesses identify, collate, and make public their data on the release into the environment of diverse hazardous chemical substances, including their sources and volumes, and on their transfer out of the business prem-ises as waste.
Reduction of Industrial Waste / Recycling
● Basic Thinking
We began concrete initiatives for the reduction of industrial waste in 1998. This is an important environmental indicator for the entire Group. Currently, we are looking into mechanisms for
● Targets and Achievements
Target Scope | All AICA Group production sites in Japan |
FY2019 Targets
Industrial waste emission revenue intensity 2% year-on-year decrease 34.9 metric ton/100 million yen or less
Landfill rate at production sites in Japan 1.0% or less
FY2019 Achievements
22% year-on-year increase 42.6 metric ton/100 million yen
21.2%
are considering productivity improvements and product weight reductions and pursuing changes to our product specifications for the replacement of Substances of Concern with alternative substances.
● Achievement Trends
*From FY2019, we have added one target substance and reassessed the results from previous fiscal years.
Target Scope | All AICA Group production sites in Japan |
Trends in release and transfer of substances subject to PRTR (metric ton)
80 60 40 20 0
2019 (FY)
2015
2016
■ Production sites in Japan
2017
2018
reducing the volumes of industrial waste generated and the dis-posal of that waste, including the possibility of processing it into valuable materials.
Causes of increase/decrease
In the aftermath of China's restrictions on imports of plastic waste, the impact of plastics that had previously been handled as valuable materials now being discarded as industrial waste continues to be felt. The deterioration of market conditions for paper waste also had an impact.
Landfill rate increased due to changes in the methods of handling calcium silicate panels, which are a waste product generated by AICA-TECH Kenzai Co., Ltd.
FY2020 Targets
2% year-on-year decrease 41.7 metric ton/100 million yen or less
1.0% or less
● Major initiatives in FY2019
Name of site
Nagoya Plant
Location
Kiyosu, Aichi Prefecture
Jimokuji Plant
Ama, Aichi Prefecture
Ibaraki Plant
Koga, Ibaraki Prefecture
AICA Interior Kogyo Co., Ltd.
Komaki, Aichi Prefecture
AICA Harima Kogyo Co., Ltd.
Kasai, Hyogo Prefecture
· Reduction of offcuts, reduction of waste resin from resin impregnation process, improvement of product defect rate
AICA-TECH Kenzai Co., Ltd.
Oharu, Aichi Prefecture Chikusei, Ibaraki Prefecture Ichikawa, Hyogo Prefecture
● Achievement Trends
· Improvement of product defect rate, reduction of waste resin from resin impregnation process
· Introduction of sludge drying system
Details
· Conversion of waste toluene solution to valuable material
· Effective use of offcuts
· Reduction of sandpaper waste products · Improvement of yield due to strengthening of maintenance of manufacturing supplies
Target Scope
All AICA Group production sites in Japan, all AICA Group production sites overseas
Trends in industrial waste emission volumes
(metric ton)
(FY)
2015
2016
2017
2018
■ Production sites in Japan ■ Overseas production sites ① Newly consolidated in FY2015 ② Newly consolidated in FY2016 ③ Newly consolidated in FY2018 ④ Newly consolidated in FY2019
Trends in industrial waste emission revenue intensity (metric ton/100 million yen)
60.0
45.0
34.8
30.0
24.4
15.0
0
Trends in land
42.6
35.0
35.7
2019
2015
2016
Production sites in Japan
2017
2018
2019
(FY)
on/100 million yen)
Trends in land ll disposal rates at production sites in Japan
(%)
20.0
15.0
10.0
5.0
21.2
0
(FY)
2015
2016
Production sites in Japan
2017
2018
2019
(FY)
● Achievement Trends
Reduction of water consumption
● Basic Thinking
Our production sites in Japan use industrial water and under-ground water, and we are pursuing the cyclic usage of water at our Nagoya and Jimokuji Plants. The Isezaki Plant, which has the highest water usage, is located near the rich Tone River sys-tem. It uses water resources in abundance, but will now strive to reduce the amount of water it consumes.
Some of our overseas production sites are located in coun-tries with grave water situations. Each of our business sites is
Target Scope | All AICA Group production sites in Japan All AICA Group production sites overseas |
Trends in water consumption
(1,000 m³)
3,000
2015
2016
2017
2018
■ Production sites in Japan ■ Overseas production sites ① Newly consolidated in FY2015 ② Newly consolidated in FY2016 ③ Newly consolidated in FY2018 ④ Newly consolidated in FY2019
taking the necessary measures and managing its water usage with the recognition that water is a finite resource. With refer-ence to AQUEDUCT, which is released by the World Resources Institute (WRI), we identify high-risk areas and promote effective use of water in those areas as a priority.
AICA Laminates India, which is located in the northwest of India, recycles water for use in its manufacturing processes, and any waste water is treated and used for gardening purposes.
● Actual water consumption volumes in FY2019 in high-risk areas*1
PT. AICA Indria (AAPH*2 Group)
Pasuruan (Indonesia)
2019 (FY)
SHENYANG AICA-HOPE KOGYO Co., Ltd.
4,900 m3
*1 Sites assessed as at "extremely high" risk in WRI Aqueduct's Overall Water Risk. *2 AICA Asia Pacific Holding Pte. Ltd.
Environmental Risk Management
State of compliance with environmental laws
In FY2019, no Japanese site in the AICA Group was subject to correction directives from the competent authorities or to environ-ment-related litigation.
Complaints from neighbors and responses
In FY2019, there were no complaints from neighbors at any of the AICA Group's Japanese sites.
Environmental accidents
In FY2019, there were no environmental accidents that would have an impact outside the site of AICA Group sites in Japan, but there was a leakage emergency. We share information androll out responses horizontally across the Group to ensure that no inconvenience is caused to our neighbors or to the govern-ment agencies with jurisdiction.
Name of site Date of incident | Response |
Jimokuji Plant | · Thorough instruction and education on safe |
(Premises for reloading by logistics | operation of forklifts. |
subcontractors) | · Repairs of concrete surface of yard. |
(August 2019) | · Repair of gutter lid on footpath. |
A product container tipped over while being moved by forklift, resulting in just under half a metric ton of adhesive resin spilling out into the gutter next to the yard. Oil fences and sandbags were used to prevent the spill from spreading and some of the resin was recovered.
Details of incident
Foundations of AICA
Engagement withStakeholders
Basic Thinking on Engagement with Stakeholders
As a company that is widely trusted by society, we have in-stilled in our corporate policy our belief in the importance of fair and highly transparent compliance-based management in accordance with the law and social order and in engagement
Additional information about engagement with stakeholders is available on the AICA website. (Only Japanese)http://www.aica.co.jp/company/environ/principle/
with stakeholders. Based on this corporate policy, we have a basic policy of disclosing information about the company to all stakeholders in a fair and timely manner.
Involvement with Customers
Voluntary Action Guidelines Concerning Product Safety
We believe that the most important challenge in quality man-agement is to deliver safe and reliable products to our custom-ers. To put this into practice, we have established voluntary
● Product Safety Voluntary Action Guidelines - Basic Principles
action guidelines regarding product safety and strive to ensure product safety and information disclosure.
[1] Compliance with laws and regulations
[2] Initiatives for ensuring product safety
We will develop and implement voluntary action plans regarding product safety that include the following, pursue continued improvements, and establish a corporate culture that focuses on the customer and ensures the safety of products.
To ensure product safety, we will conduct proper quality control and educate all employees for thorough awareness of and compliance with legislation.
Using feedback from our customers and market information, we will identify the risks accompanying our products, their con-struction, and their use (including misuse). We will reflect those risks in our design and development, handling instructions, warning labels, and construction manuals, and strive for the continued improvement of product safety.
[3] Response to product-related incidents
AICA Inquiry Center
We will keep the entire company thoroughly informed about the Consumer Product Safety Act and other laws concerning product safety, other related legislation, and the latest information about product safety, and comply with the legislation.
In the event of accidents involving our products, we will actively gather information about such accidents from the customers and provide appropriate responses and information to the customers.
In the event of a serious product accident involving our products, a report will be made to top management, and prompt action will be taken to keep the damage from spreading. In accordance with the legislation, we will also promptly report to the competent authorities and relevant organizations.
Regarding product accidents, where deemed necessary, we will undertake an immediate recall of the products and advise customers promptly using the most appropriate method.
We have established the AICA Inquiry Center as a direct point of contact with customers who have adopted our products. So we can be of even more assistance, we carry out a variety of measures with the aim of improving call quality and enhancing our proposal-making capabilities.
With the introduction of a Call Center System in April 2018, the efficiency of the Inquiry Center staff's responses has im-proved, and we have made major improvements to call re-sponse rates. It has become easier to put customers through to the most appropriate staff to handle inquiries about specific products, which has also helped to improve call quality.
In FY2018, we also began telemarketing. We follow up on inquiries at a later date and, if the customer requests it, make sales visits and provide other services to meet the customers' wishes.
In addition to daily training with the aim of even higher call quality, we will strive to provide services that will offer even greater satisfaction.
Trends in number of inquiries made to Inquiry Center/response rate
(accidents)
80,000 60,000 40,000 20,000
0
2015
2016
Number of inquiriesResponse rate*
*Data collected from FY2016
(%)
100 75 50 25
2017
2018
2019 (FY)
Value chain collaboration
Distributors and construction businesses are stakehold-ers in our value chain. To build a stronger network with these stakeholders, on the sales front, we have established the AICA Distributors' Organization as a network of distributors with a wealth of expert knowledge. Through this organization, we share sales and product strategies and strive for healthy com-munication between distributors. On the construction front, we have established construction groups of various types, through which we share information about improving construction quali-ty and about product improvement and development.
Customer Satisfaction Survey
With the objective of asking our customers to evaluate our products and services, we have conducted a Customer Satisfaction Survey every year since FY2002.
To put the opinions received from our customers to good use in product development and improvement of services, we iden-tify issues from the survey findings, communicate them to the
AI chatbot introduced on website
In December 2019, we introduced an AI-equipped chatbot*1, AI Assistant AICA, to the AICA website. This has improved the convenience of the website, enabling users to access the infor-mation they need in a smarter way from our vast product cata-logue.
With the introduction of this system, the AI chatbot can han-dle simple inquiries, which has cut down on the number of
AICA SEMINAR IN CONTEMPORARY ARCHITECTURE
AICA Distributors' Organization National Convention
Company policy briefing
relevant departments after the senior executives have checked them, and put responses into place.
In the FY2019 survey, the evaluation was high overall, and evaluation of sales activities also improved. Going forward, we will continue to conduct sales education and place efforts into the further improvement of satisfaction.
inquiries made to our Inquiry Center. This has given Inquiry Center staff more time to improve the quality of their handling of the inquiries they do receive.
*1A combination of the word "chat" (talk) and "bot" (robot). Automatic chat program that uses artificial intelligence. The system gives auto-mated responses to text entered by the user to replace the work of handling inquiries, etc.
Through the supply of trusted products, we have strived to contribute in some small way to the elevation and development of architectural culture.
One initiative we are pursuing to make a further contribution is by hosting the AICA SEMINAR IN CONTEMPORARY ARCHITECTURE. Since 1983, we have invited prominent architects from Japan and overseas to give lectures in various parts of the country in a wide range of areas such as housing, the environment, and urban issues. People from many walks of life, including architects, students, and members of the general public, attend these free seminars.
For the 65th AICA SEMINAR IN CONTEMPORARY ARCHITECTURE, held in September 2019, we invited Chinese architect, Ma Yansong, as guest lecturer to talk about his recent works.
Involvement with Supply Chain
Basic Thinking on Involvement with Supply Chain
To fulfill the AICA Group's corporate social responsibility (CSR), we believe that it is essential that we obtain the under-standing and cooperation of our stakeholders. In our procure-ment activities, in addition to taking responsibility as the AICA Group, we also pursue CSR activities with the cooperation of our suppliers.
Communicating with Suppliers
Based on this belief, in June 2017, we undertook a major overhaul of our earlier procurement policies and established the AICA Group CSR Procurement Guidelines. We have obtained the consent of our suppliers in Japan and overseas to these Guidelines, for the further mutual improvement of our CSR ac-tivities.
We held a Purchasing Policy Briefing in June 2019 as a forum for communica-tion with our suppliers, at which we shared our company policies and purchasing policies.
Further, with the objective of sharing our CSR procurement philosophy and in-vestigating the actual situation, we have conducted self-evaluation questionnaire surveys since FY2018. For the targets of this survey, we selected suppliers that cover approximately 70% of the total value of AICA Kogyo's (parent company only) materials procurement, with a particular focus on our main suppliers.
Based on the results of this survey, where necessary, AICA Kogyo employees then conduct an audit (on-site inspection). If any outstanding initiatives are con-firmed, we will ask that company to teach us their methods, and if we encounter matters that require correction, we will provide guidance and instruction to those companies. By continuing with this two-way dialogue, we aim for the mutual im-provement of our standards.
Business Continuity Plan (BCP) measures in procurement activities
To ensure stable supplies even after a disaster or accident, we purchase our main raw materials from multiple suppliers and sites, and ensure that we have alternative options for purchasing.
Regarding our own products, we have built production struc-tures at multiple sites and have taken measures to ensure that we maintain a certain level of inventory.
Provision of Product Safety Information
Amid ever-increasing concerns about chemicals, including the enforcement of the Revised Buildings Standards Act, the revision of the standards for school environmental hygiene, and restrictions on chemical substances overseas, our business overall is widely involved in these issues.
In FY2019, we provided safety information in response to 1,990 requests from customers. These kinds of requests are increasing in number every year.
The most frequent queries were about investigations of do-mestic chemical substance restrictions, investigations of the inclusion of chemicals that are restricted overseas, and the documentation related to export trade control orders. These trends reflect the expansion of global business. To fulfill our re-sponsibilities as a member of the supply chain, such as inqui-ries about new legislation in various countries, and requests for investigation and provision of information about new chemicals,These initiatives have proved successful and the impact of the COVID-19 pandemic did not extend to our procurement of raw materials. We will continue to consider measures to ensure that we can fulfill our supply responsibilities even in the event of a disaster or accident, and implement various measures as required.
the relevant departments work together to provide prompt and more accurate responses.
Trend in numbers of cases of provision of product safety information (accidents)
2,000
1,500
1,000
500
0
1,885
1,990
1,376
1,316
1,250
2015
2016
2017
2018
2019 (FY)
Involvement with Shareholders
Ensuring appropriate information disclosure and transparency
As a company that is widely trusted by society, we have a basic policy of disclosing information about the company to all stakeholders at the right time and in the most fair and appropri-ate manner. We comply with the Companies Act, the Financial Instruments and Exchange Act, and the rules for timely disclo-sure prescribed by the stock exchanges on which our shares are listed, and conduct information disclosure in accordance
● Information Disclosure Documents
Communication with shareholders and investors
We take proactive steps, within a reasonable extent, to achieve constructive dialogue with our shareholders. Any opinions and information obtained through such dialogue is reported to the Board of Directors and we strive to reflect it in future management and IR activities.
To obtain their understanding and appropriate evaluation, in addition to the General Meeting of Shareholders and the reception after that meeting, we hold Financial Results Briefings for analysts and institutional investors twice a year, at which our Representative Directors provide explanations. The Public Relations and IR Group responds to requests for individual interviews and telephone press inquiries. Any information to be disclosed in such cases is approved by a Representative Director and the Director responsible for the matter at hand.
Shareholder returns
To realize the return of profits to our shareholders and the sus-tainable growth of the company, we issue dividends that consider the consolidated performance of each period, payout ratios, and internal reserves. Under our current Mid-Term Business Plan, C&C 2000, we are issuing shareholder returns that are linked to performance, with a target consolidated payout ratio of 50%. In FY2020, we view the forecasts for diminished profits as being the result of the extraordinary circumstances of the temporary downturn in domestic and overseas economic activity due to the COVID-19 pandemic, and we intend to issue dividends at the same level as the previous fiscal year.
Our basic policy is to issue dividends twice a year, consisting of an interim dividend halfway through the fiscal year and a final dividend at the end of the fiscal year.
Regarding the use of internal reserve funds, priority is given to capital investments for the expansion of existing core businesses and to investments to increase future corporate value, including
External Evalution
with our Disclosure Policy.
Even for information that is not subject to the Companies Act and the timely disclosure rules, if we believe the information to be important for shareholders and investors to make investment decisions, we will disclose that information, giving consideration to fairness and timeliness.
Number of individual dialogues with institutional investors in FY2019
162 accidents
M&As. These investments are made in consideration of invest-ment efficiency from long-term perspectives.
Dividend and payout ratio
(yen) 200
160
50.2%
50.1%
120
80
40
0
2020 (projected)
2016
2017
Dividend (left axis)Payout ratio (right axis)
In 2019, we were added for the first time to the FTSE4 Good Index Series and FTSE Blossom Japan Index, leading SRI indices developed by FTSE Russell. The decision has been made to include us in these indices in 2020 as well.
We have been part of the JPX Nikkei Index 400, a stock index developed by the Japan Exchange Group, Inc., Tokyo Stock Exchange Group and Nikkei Inc., for eight consecutive terms.
76.9%
54.4%
(%) 80.0
60.0
50.5%
40.0
20.0
2018
2019
(FY)
Involvement with Local Community | |
As a company with global operations, the AICA Group values | mutual harmony, such as participating in volunteer activities |
its connections with local regions and communities not only in | in collaboration with local community action groups, including |
Japan but from a global perspective. | clean-ups in the areas surrounding our production and sales |
We continue to conduct activities based on a philosophy of | sites. |
Aica Laminates Vietnam Co., Ltd. |
Cooperated with Vietnam training trip by Aichi Prefectural Nakamura Senior High School.
Nakamura Senior High School places efforts into learning guidance, club activi-ties, and international understanding education. In FY2019, the school established a new International Understanding Course. As part of the curriculum of this course, a training trip to Vietnam was conducted with the objective of deepening under-standing about Vietnam's culture, history, economy, and language, through expe-riential and explorative learning, in addition to acquiring general knowledge about international understanding.
The students on the trip visited companies from Aichi Prefecture that have set up operations in Vietnam to deepen their understanding of how people and goods are linked across national borders in a global society. Thirty students and their two teachers visited Aica Laminates Vietnam Co., Ltd. on July 24.
Comments received from the visiting students about their visit to the company included: "My dream is to set up my own company in the future, and hearing about things like business plans and establishment plans gave me a more concrete im-age." "This was the first time I had heard about a company's overseas strategy. It made me realize that they are the result of accumulated efforts in areas such as careful customer service and employee recruitment in the course of setting up the company." "I realized that there is still a great deal of potential for development in overseas business."
EVERMORE CHEMICAL INDUSTRY CO., LTD. Forest plantation clean-up activity
Since 2010, EVERMORE CHEMICAL INDUSTRY CO., LTD. has owned one hectare of forest plantation in the ninth forest zone of National Taiwan University's experimental forest. Every year, the company visits the plantation for a clean-up activity, positioning it as a "Family Day" that gives employees and their families the chance to interact with each other, as well as check out the planted trees.
Through this activity, the company shares with employees the importance of environmental conservation activities and consideration of health, with the aim of becoming a "Green Company."
Sponsorship and exhibition in Youngsters' Science Festival 2019
We sponsor and exhibit at the Youngsters' Science Festival, which is held annually at the Nagoya City Science Museum and Electricity Museum. At this event, at which everyone from children to adults can engage with science in fun and casual ways, we co-operated by providing a space for hands-on experiences of adhesives.
Hopes for disclosure in line with integrated thinking in response to the transformation of capitalism
Third-Party Opinion
At the global level, there is renewed emphasis on stakeholder capitalism based on corporate objectives. This concept, which was proposed last year by the Business Roundtable, a group of executives of major U.S. companies, refers to the recognition that compa-nies have come to identify the resolution of social issues, such as contributions to local communities and dealing with environmental issues, as a corporate objective. The World Economic Forum has revised its own guidelines, the Davos Manifesto, to give renewed emphasis to stake-holder capitalism. Amongst this trend, at AICA, you have placed "symbiosis" at the core of your corporate philoso-phy, focusing on dialogue with all stakeholders and pro-moting sustainable management that balances economic growth and social responsibility, centered on a "virtuous circle model." In this regard, you could be described as a front-runner in CSR.
This fiscal year, you have focused on strengthening corporate governance in the following ways:
● Transition to a Company with Audit and Supervisory Committee in June 2020
● Establishment of an Overseas Planning Department and Overseas Governance Committee, with the aim of reinforcing governance of the Overseas Group companies
These measures have formed the foundations for im-proving the transparency of your governance functions and business management, which I expect will prove effective going forward. Also, in the course of strength-ening your overseas business with a focus on Asia, your governance will need to function in an integrated manner as the AICA Group.
In terms of strengthening your frameworks for the promotion of CSR, the CSR Committee, which plays the leading role in your CSR activities, will now report to the Board of Directors instead of the Management Meeting, which will give the Board a stronger monitoring function. I believe that your reputation among stakeholders in Japan and overseas will be enhanced by the Board of Directors taking responsibility for the supervision of CSR activities.
Regarding environmental issues, you clarified your approach for the AICA Group as a whole by launching the Climate Change Response Project in April 2020 and endorsing The Task Force on Climate-Related Financial Disclosures (TCFD) in May. As the world moves toward becoming a carbon-free society, for you to become a company that society will choose, I hope you will further raise your targets for greenhouse gas reductions, de-clare a policy for net-zero emissions by 2050, establish an action plan based on that policy, and implement it to achieve those targets.
There are several points I would like to request for the future.
① Building long-term strategy
QUICK Corp.
Managing Executive Officer Head of ESG Research Center
Etsuya Hirose
You have formulated your AICA 10-Year Vision, which sets out your financial targets and ideal vision for the next 10 years, based on group collaboration & enhancement of business foundations, human resources develop-ment, and responsibility to stakeholders, linking it to the Medium-Term Business Plan. I hope that you will develop this vision into an even longer-term, 30-year vision, draw up scenarios for the future of a carbon-free and recy-cling-oriented society, and develop long-term strategies.
② Strengthening response to business and human
rights
Your response to labor-related and human rights risks seems to have fallen behind compared with your re-sponse to environmental issues. Looking at the financial and non-financial highlights (P3, P4), the labor-related data (number of industrial accidents, industrial accident frequency rate/severity rate) are only for production sites in Japan. In addition, I have not been able to confirm the supervision and management frameworks for labor-re-lated and human rights risks. With overseas sales ac-counting for more than 40% of your sales and given your strategy of strengthening your overseas business even further with a focus on Asia, I believe that you will need to identify and assess labor-related and human rights risks, prevent and mitigate adverse impact, and conduct monitoring and disclosure of information throughout the Group, including your supply chains.
③ Promotion of Diversity
You have designated "human resources" as one of the Group's materialities and are making efforts to promote women's active participation and to improve the percent-age of female employees, so I believe that the percentage of female managers will also increase in the future. Going forward, I hope you will promote diversity, including pro-motion of non-Japanese employees, as a company doing business on a global scale. In this fiscal year, you ap-pointed one female external director. In the future, I hope you will reorganize the skill matrix of Directors and further promote diversity on the Board.
Finally, I recommend that you undertake a review of your materialities on an annual basis. As new ESGs is-sues arise and the seriousness of each issue changes year by year, it is important to keep working to meet the demands of your global stakeholders. I also look forward to an explanation of your management frameworks in terms of how your materialities are being integrated into your business models and risk management.
Fundamentals of AICA
Giving Back to the Earth through Technology
Head Of ce: 26F JP Tower Nagoya, 1-1-1 Meieki, Nakamura-ku, Nagoya, Aichi, 450-6326, Japan Tel: (052) 533-3136
URL/http://www.aica.co.jp/
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Published September 2020
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Aica Kogyo Company Limited published this content on 11 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 March 2021 15:34:04 UTC.
