Company Overview
Company Overview(As of October 31, 2021)
Company name: | OHARA INC. |
Address: | 15-30, Oyama 1-chome,Chuo-ku,Sagamihara-shi, |
Kanagawa, Japan | |
Established: | October 1, 1935 |
Capital: | 5,855 million yen |
Business contents: | Manufacture and sale of glass materials for optical |
and electronics applications |
Number of employees: 438 (1,462 for the entire Group)
Member of the Board
President, Chief Executive Officer | Hirokazu Saito |
Director, Senior Managing Executive Officer | Takashi Nakajima |
Director, Managing Executive Officer | Tetsuya Aoki |
Director, Managing Executive Officer | Naoyuki Goto |
Outside Director | Makoto Ichimura |
Outside Director | Go Tokura |
Outside Director | Akira Nokina* |
Outside Director | Yukako Makino* |
Audit & Supervisory Board Member | Yoshihiro Harada |
Audit & Supervisory Board Member (Outside) | Haruhiko Takagi |
Audit & Supervisory Board Member (Outside) | Kazuhiko Nagashima |
Audit & Supervisory Board Member (Outside) | Yoshinari Iizuka* |
Note*: Outside Directors, namely, Mr. Akira Nokina and Ms. Yukako Makino, and Audit & Supervisory Board Member (Outside) Mr. Yoshinari Iizuka are independent officers based on the regulations of the Tokyo Stock Exchange.
Scope of Report | This report mainly covers the activities of | ||||||
non-consolidated OHARA INC. | |||||||
*The figures in the financial reports, however, denote | |||||||
numbers that include the results of the Group companies. | |||||||
Reporting Period | FY 2021 | ||||||
From November 1, 2020 to October 31, 2021 | |||||||
*There are, however, some references to activities for FY 2022. | |||||||
Date of Issue | January 2022 | ||||||
Reference Guidelines | GRI,GRI Sustainability Reporting Guidelines | ||||||
Ministry of the Environment, Environmental | |||||||
Reporting Guidelines 2018 | |||||||
OHARA INC.
15-30, Oyama 1-chome,Chuo-ku,Sagamihara-shi, Kanagawa, 252-5286, Japan TEL: (81) 42-772-2101 (Reception) FAX: (81) 42-774-1071https://www.ohara-inc.co.jp/
E-mail:info@ohara-inc.co.jp
Stock Information(As of October 31, 2021)
Status of shares | |||
Total number of authorized shares: | 76,000,000 | ||
Total number of issued shares: | 25,450,000 | ||
Number of shareholders: | 10,079 | ||
Major shareholders | |||
Name | Number of | Investment | |
shares held | ratio (%) | ||
Seiko Holdings Corporation | 4,702,722 | 19.31 | |
Canon Inc. | 4,694,380 | 19.28 | |
Kyobashi Kigyo Kabushiki Kaisha | 4,688,400 | 19.25 | |
Sanko Kigyo Kabushiki Kaisha | 1,651,400 | 6.78 | |
The Master Trust Bank of Japan, Ltd. (trust account) | 877,500 | 3.60 | |
TOPCON CORPORATION | 673,600 | 2.77 | |
Seiko Instruments Inc. | 610,000 | 2.50 | |
Olympus Corporation | 400,000 | 1.64 | |
JP MORGAN CHASE BANK 385781 | 141,580 | 0.58 | |
Custody Bank of Japan, Ltd. (trust account) | 119,200 | 0.49 |
(Note) Treasury stock (1,098,578 shares) is deducted in calculating the investment ratio.
Treasury stock includes 76,000 of the company's shares held by the Custody Bank of Japan, Ltd. (Trust E Ac- count), in accordance with the introduction of the "Board Benefit Trust (BBT)" system.
Shareholding Composition
Individuals, etc. | Securities companies | Treasury stock | |||||||
18.41% | 1.14% | 4.32% | |||||||
Other domestic corporations | |||||||||
Financial institutions | Foreign companies, etc | ||||||||
68.90% | 4.44% | 2.79% |
Shareholder Information
Business year: | November 1 to October 31 of the following year |
Record date of | October 31 (April 30 for interim dividends) |
dividends of surplus: | |
General meeting | Late January of each year |
of Shareholders: | |
Number of shares | 100 shares |
per unit: | |
Handling office of | 3-3, Marunouchi 1-chome,Chiyoda-ku, Tokyo |
shareholder registry | Stock Transfer Agency Department of the Head |
administrator | Office, Mizuho Trust & Banking Co., Ltd. |
Method of public | Electronic public notice |
notice: | (https://www.ohara-inc.co.jp/) |
However, if an electronic public notice cannot | |
be issued due to any unavoidable reasons, a | |
notice will be published in the Nikkei. |
Stock-related Procedures
Shares are held | Shares are not held at securities | |
at securities firms | firms or other agencies | |
or other agencies | (special account) | |
Inquiries on changes in | Please contact | |
address, method of | your securities | Please contact Mizuho Trust & |
receiving stock | firm or other | |
Banking, the account administration | ||
dividends, etc. | agency. | |
institution for the Company's special | ||
accounts. | ||
Please contact | ||
Stock Transfer Agency Department, | ||
Inquiries on unpaid | Mizuho Trust & | |
Mizuho Trust & Banking | ||
dividends and | Banking whose | |
Website: | ||
documents related to | details are | |
https://www.mizuho-tb.co.jp/daikou/index.html | ||
OHARA shares | provided on the | |
right. | ||
Special accounts do not allow the | ||
trading of shares other than purchases | ||
or additional purchases of fractional | ||
Note | shares. In order to trade shares, you | |
must open an account at a securities | ||
firm or other agency and complete the | ||
procedure of stock account transfer. | ||
O H A R A R e p o r t
2022
The Future Made Clear
Management Philosophy
The OHARA Group continually seeks to instillnew value and build a strong organization for the purpose of advancing the well-being of its people andcontributing to the prosperity of society.
Aimingto become a 100-year company that
continuesto be chosen by customers, the
OHARAGroup will contribute to the "future
of people and society" using technologiesandquality it has cultivated as AllOHARA.
Corporate Message
Brand Slogan
The Future Made Clear
The Societyand the Future OHARADesires
A secure and healthy life. A society that cultivates creativity and
aspirations. Sustainable well-being of our planet.
OHARA's
Mission
Pursue opportunities by
developing new materials for
every era.
Form alliances with diverse partners to elevate lifestyles and cultures and promote innovation. Advancement of new frontiers and improvement of the global environment.
CONTENTS
Management Philosophy & Corporate Message | 2 |
History of Value Creation | 3 |
Corporate Profile | 4 |
Top Message | 5 |
OHARA's Value Creation | 7 |
Long-Term Vision 2035 | 9 |
Medium-Term Management Plan | 11 |
Innovative Activities - Global Market Development Project | 12 |
Strategies by Business and Function | |
Optical Business | 13 |
Electronics Business | 15 |
Research & Development and Technology | 17 |
OHARA Group's Sustainability | 18 |
Social Initiatives through Corporate Activities | 19 |
Environment | 19 |
Trusting Relationships with Stakeholders | 20 |
Pursuit of Quality | 20 |
Fair Transactions | 20 |
Local Communities | 20 |
Communication with Shareholders and Investors | 21 |
Employees | 21 |
Compliance Promotion System | 22 |
Corporate Governance | 23 |
Financial & Non-Financial Highlights | 25 |
Company Overview | Back cover |
OHARA's Values
Outstanding materials that exceed expectations and facilitate our customer's success.
Culture
Proceed with integrity Craftsmanship without compromise
Initiate a continuous cycle of challenge Work together as 'All OHARA' Respect, transformation & growth
1OHARA Report 2022 | OHARA Report 20222 |
History of Value Creation
Corporate Profile
OHARA INC.
1935•• • • • •1935
Jinpachi Ohara, Founder
Founded OHARA Optical Glass Mfg. Co. Ltd. (currently OHARA INC.) in Kamata, Tokyo, crating Japan's first manufacturer specializing in optical glass. Jinpachi Ohara's technology spirit continues to be passed on.
Established OHARA Optical Glass Mfg. Co. Ltd. in Kamata, Tokyo by Jinpachi Ohara.
1980
- • • • •1936
- • • • •1944
- • • • •1969
•• • • • •1982
Started optical glass melting.
Reorganized as a Joint-Stock Company. Built Sagamihara factory.
OHARA Glass reached the moon (Apollo 11).
Installed OHARA Glass in Space-Shuttle "Columbia."
Leading company in | 152types of | Over 10types of | |
86-year history | optical glass and |
1990•• • • • •1985
•• • • • •1994 |
•• • • • •1997 |
•• • • • •1998 |
•• • • • •1999 |
2000•• • • • •2000 |
•• • • • •2005 |
•• • • • •2007 |
2010 |
•• • • • •2012 |
•• • • • •2014 |
•• • • • •2015 |
•• • • • •2016 |
•• • • • •2017 |
Introduced New Company Name "OHARA INC."
Commenced hard disk business (phased out in 2014).
Switched all 112 recommended glass types (at the time) to eco-glasses. OHARA acquired ISO9001 certification.
Installed OHARA Glass in Suprime-Cam in Subaru telescope.
OHARA acquired ISO14001 certification.
Listed on First Section of Tokyo Stock Exchange.
Installed OHARA Glass in the Lunar Orbiter "KAGUYA (SELENE)." Installed OHARA Glass in Hyper Suprime-Cam in Subaru telescope.
"Ultra Low Expansion Glass-ceramics(CLEARCERAM™-Z)" was adopted in ultra-large telescope TMT.
OHARA Glass was adopted in the Hayabusa2 deployable camera (DCAM).
Started mass production and supply of aspherical glass mold lenses.
"Shock Resistant and High Hardness Clear Glass-ceramics (NANOCERAM™)" was adopted in the high-grade filter for interchangeable lenses.
NANOCERAM™ was adopted in screen protector glass for smartphones.
Provided by:
National Astronomical Observatory In cooperation with:
Mitsubishi Electric Corporation
JAXA
optical glass | special glass and | |
special glass | (as of May 2021) | glass-ceramics |
Providing Materials in All Fields
Consumer imaging | Mobile | Biomedical | |
Mobility | Security | Ofce | |
Education | Industrial equipment | Aerospace | Research institutes |
Overseas | FY 2021 | Japan |
employees ratio | ||
60.5% | employee | |
composition | ||
1,462 |
OHARA GmbH (Germany)
OPC Corporation |
NHG-OHARA OPTICS (XIANGYANG) Co., LTD. (China) |
OHARA INC. |
OHARA OPTICAL (HONG KONG) LTD. (Hong Kong) |
•• • • • •2018 |
•• • • • •2019 |
2020
•• • • • •2021
"Ultra Low Expansion Glass-ceramics(CLEARCERAM™-Z)" was adopted in the Super Low Altitude Test Satellite "Tsubame" (SLATS).
Launched the world's first optical glass material dedicated to automotive cameras.
Commenced operation of new factory for aspherical glass mold lenses.
"Ultra Low Expansion Glass-ceramics(CLEARCERAM™-Z)" was adopted in Japan's largest telescope Seimei.
OHARA Glass was adopted in NASA's Mars rover "Perseverance."
Ohara Quartz Co., Ltd. | ||||
OHARA OPTICAL (ZHONGSHAN) LTD. (China) | Ohara Corporation (East Ofce) (USA) | |||
TAIWAN OHARA OPTICAL CO., LTD. (Taiwan) | ||||
Ohara Corporation (West Ofce) (USA) | ||||
OHARA OPTICAL (M) SDN.BHD. (Malaysia) | Taiwan Ohara Optical Material Co., Ltd. (Taiwan) | |||
3OHARA Report 2022 | OHARA Report 20224 |
Top Message
Hirokazu Saito
President, Chief Executive Officer
we see ourselves in the future. This message is to set "The Future Made Clear" as our brand slogan, define our own mission and values, and demonstrate the culture to fulfill this with the aim of becoming a corporation with a 100-year history. With regard to a new Long-Term Vision, we decided to first launch a three-yearmedium-term management plan (FY 2021 through FY 2023) to overcome the unprecedented crisis caused by the COVID-19 pandemic, and formulate the vision once we are able to foresee an improvement in operating results.
In the first year of the medium-term management plan, as mentioned above, we achieved a significant improvement in operating results as a result of the market recovery. In response to this, we formulated and launched the Long-Term Vision 2035 as a future guideline to realize our Corporate Message.
The vision aims to achieve "a secure and healthy life," "a society that cultivates creativity and aspirations," and the "sustainable well-being of our planet" as we approach 2035, when the OHARA Group will celebrate its 100th anniversary, while assuming that the era will be one in which the future outlook is uncertain and unpredictable. These initiatives seek value co-creation with customers and business partners in the supply chain while leveraging our strengths in materials and technologies, and will contribute to the resolution of social issues.
The management policy to achieve the vision centers on the development of existing businesses in the optics technology field, which stimulates new demand through a fusion of light and sensing, and the construction of multifaceted business through the creation of new businesses. We will support this policy by creating both organizations in which diverse human resources can play a part and a corporate culture that takes on challenges. In particular, we believe that the participation of women and overseas human resources is an indispensable element
In the next two years of business development, it is essential that we launch mass production projects for NANOCERAM™, and we intend to use these as the starting point for "the creation of highly profitable businesses." In our efforts to resolve social issues, we will embark on the electrification of gas furnaces while proceeding with the test introduction of high-temperature,high-speed melting furnaces in order to reduce GHG emissions.
As newly established performance targets, we aim to achieve net sales of 26.5 billion yen or higher, operating income of 3.0 billion yen or higher, and ROE of 6.5% or higher in the consolidated business results for FY 2023.
To All Stakeholders
Strengthen profitability and establish a solid corporate structure
In the previous fiscal year we posted a large loss, which was a cause for concern among our stakeholders. However, as we were able to improve our operating results in FY 2021, we decided to pay a year-end dividend of 15 yen per share (up 5 yen from the previous year). We will continue to strive to maintain a stable dividend over the long term.
In preparation for the transition to the new market segment that the Tokyo Stock Exchange is scheduling for April 2022, OHARA has selected, and is undertaking procedures, for the "Standard Market." We aim to transition to a higher ranked market in the future after strengthening our profitability by transforming our business structure in this market and establishing a solid corporate structure. We are also working on improving our internal structure, including strengthening our
Looking Back on FY 2021 Operating Results
Significant improvement in operating results due to the recovery of demand for glass materials
In FY 2021, the business environment improved significantly after deteriorating due to the impact from the COVID-19 pandemic, and demand for glass materials in both the digital camera market and the semiconductor market increased dramatically from March. The OHARA Group responded to the rising demand by rapidly refurbishing its melting facilities, the operation of which had been suspended due to the reduced operating rates in the previous fiscal year, and by increasing its workforce.
In the digital camera market, although there have been no changes to the basic structure, which is affected by the increasing use of smartphones, there has been a significant rebound after the contraction caused by the COVID-19 pandemic, and we believe that this is resulting in an upswing over and above actual demand. In the semiconductor market, investment in manufacturing equipment remains strong against the backdrop of the tight global supply, and together with the increase in organic EL panels, this is leading to growing demand for glass materials for exposure equipment. The mobile, mobility and battery (MMB) sector, which is positioned as a priority market, continues to demonstrate high growth potential, despite concerns over factors such as reduced automobile production caused by the present shortage of semiconductors.
As a result, consolidated net sales rose by 46.4% from the previous fiscal year in the Optical business and by 14.8% in the Electronics business, and profitability in both businesses improved significantly as a result of the aforementioned increase in operating rates due to growing demand. With regard to consolidated results, consolidated net sales returned to the pre-COVID-19 level of 23,520 million yen. On the
profit front, profits were once again posted with operating income amounting to 1,368 million yen, ordinary profit amounting to 1,733 million yen, and profit attributable to owners of parent amounting to 1,460 million yen.
However, this improvement in operating results is largely due to the recovery of existing businesses, and we are aware of the delay in the progress of "the creation of highly profitable businesses" that the OHARA Group is targeting with the aim of achieving sustainable growth. Mass production projects for the shock resistant and high hardness glass-ceramics NANOCERAM™, which has been our priority theme in recent years, could not be launched in FY 2021, hindered in part by the impact of activity restrictions due to the COVID-19 pandemic on our efforts in value co-creation involving processing manufacturers and finished product manufacturers. Market development, including the strengthening of marketing functions and the development of global markets, also did not lead to sufficient results amid continued restrictions on overseas travel. Going forward, we will promote initiatives based on the medium-term management plan described below in order to accelerate these business structure reforms.
Formulating a Long-Term Vision for 2035
Guidelines to realize the Corporate Message
The OHARA Group has been working to grow the Electronics business and develop the environment and energy field as growth drivers following the Optical business through its Long-Term Vision 2020 covering the 12 year-period from FY 2009 to FY 2020. In particular, from the middle of the period onward, we focused on transforming our business structure and establishing new drivers of growth, but the challenges facing us continued amid a series of market changes that exceeded our expectations when formulating the vision.
Based on those results, we formulated a Corporate Message in FY 2020 that clarifies the direction we should take going forward and how
for reforming the business structure and creating new value.
In addition, as an initiative for sustainability, we will promote the reduction of greenhouse gas (GHG) emissions in our business activities to address climate change risks. Going forward, we aim to reduce GHG emissions in 2035 by 50% (compared with FY 2018) by developing and introducing high-temperature,high-speed melting furnaces with high energy efficiency and new melting processes, and by utilizing renewable energy.
Review of the Medium-Term Management Plan and Future Development
Newly reflecting back-casting from the long-term vision
The current medium-term management plan was reviewed in line with the formulation of the Long-Term Vision 2035, and the performance targets for the final year of the plan (FY 2023) were also reestablished. The contractive trend of the digital camera market, which was assumed initially, has changed; there has been a rebound following the decline caused by the COVID-19 pandemic and robust demand for glass materials has been expected in the past one to two years. Furthermore, we have newly incorporated elements for resolving social issues that were back-cast from our long-term vision. These are the two main points in the review of the plan.
In order to continue to maintain one of the themes of the plan: "Managing with agility to keep up to date with market changes," and fulfill the other theme: "Accelerating organizational metabolism" while responding to changes in the environment, we will strengthen our capacity shift to new businesses and our marketing functions, and promote value co-creation with customers and partner companies.
corporate governance, to meet the standards required of the higher- ranked market.
We would like to ask our stakeholders for their understanding and continuing support for the OHARA Group as we take on challenges and make a greater social contribution in our continued journey toward becoming a corporation with a 100-year history.
5OHARA Report 2022 | OHARA Report 20226 |
OHARA's Value Creation
The OHARA Group's "value creation model" is an initiative to realize its brand slogan, "The Future Made Clear."
Create outstanding materials that exceed expectations by pursuing the possibilities of glass with core organizational capabilities and processes, and open up the future through value co-creation with customers and processing manufacturers
Contribute to elevating lifestyles and cultures, advancing new frontiers, and improving the global environment by addressing social issues
By putting this value creation model into practice, we will realize the future and society that OHARA desires.
OHARA's Core Organizational | Create Value for Customers and Society | |||||||||||||||||||||||||||
Capabilities and Core Processes | ||||||||||||||||||||||||||||
Technology integration and combination to transform | ||||||||||||||||||||||||||||
materials into forms desired by customers | ||||||||||||||||||||||||||||
control | system | Customers | ||||||||||||||||||||||||||
Material | ||||||||||||||||||||||||||||
Precision | ||||||||||||||||||||||||||||
Measurement, | tuning | |||||||||||||||||||||||||||
evaluation | Marketing | Sharing of visions | ||||||||||||||||||||||||||
and analysis | ||||||||||||||||||||||||||||
and strategies | ||||||||||||||||||||||||||||
Production | Material | |||||||||||||||||||||||||||
technology | R&D | |||||||||||||||||||||||||||
Value co-creation | ||||||||||||||||||||||||||||
OHARA | Processing | |||||||||||||||||||||||||||
manufacturers | ||||||||||||||||||||||||||||
Flexible production system | ||||||||||||||||||||||||||||
Appropriate and quick feedback | ||||||||||||||||||||||||||||
Acceleration of hypothesis and verification cycle | ||||||||||||||||||||||||||||
OHARA's Human Capital and Culture | Social Issues | |||||||||||||||||||||||||||
Sincere action, craftsmanship without compromise, | ||||||||||||||||||||||||||||
challenge mindset, intra-group collaboration, respect for | ||||||||||||||||||||||||||||
individuality and diversity | ||||||||||||||||||||||||||||
Commitment to Society through the Value Chain | : Enhance positive impact | : Minimize negative impact | ||||||||||||||||||||||||||
Raw materials | Suppliers | Manufacturing | ||||||||||||||||||||||||||
Inbound logistics | ||||||||||||||||||||||||||||
Resource conservation | Non-use of conflict | Resource conservation | Reduction of environmentally | |||||||||||||||||||||||||
Production technology innovation | hazardous substances | |||||||||||||||||||||||||||
& recycling | minerals | & recycling | ||||||||||||||||||||||||||
in glass products | ||||||||||||||||||||||||||||
Recycling of glass | Energy efficiency | Recycling of glass | ||||||||||||||||||||||||||
through high-tempera- | waste and refractory | |||||||||||||||||||||||||||
ture high-speed melting | waste | |||||||||||||||||||||||||||
Initiatives to strengthen ethics | Talent development | |||||||||||||||||||||||||||
and compliance | Work style reform | Environmental management | ||||||||||||||||||||||||||
Seminar on export control | Childcare support | Soil and groundwater pollution |
Internal education on laws and regulations | countermeasures | |
Hourly paid leave system | Proper control over chemical | |
Ethics and compliance seminar | ||
substances | ||
successcustomers'ourfacilitateandexpectationsExceed | Focused markets and technologies | Corporate Message | DesiresOHARAFuturetheandSocietyThe | |
lifestylesofElevationofAdvancementtheofImprovement culturesandfrontiersnewenvironmentglobal | Quality of life | |||
Advanced information terminals | ||||
In-vehicle technology | A secure and healthy life | |||
Medical technology | ||||
Industry and infrastructure | ||||
Semiconductor manufacturing technology | A society that cultivates | |||
Advanced infrastructure technology | creativity and aspirations | |||
Space development | ||||
Environment and energy | ||||
GHG reduction | Sustainable well-being | |||
Low-energy melting technology | of our planet |
Next-generation batteries
Use of products | |
Disposal of products | |
Products | |
Provision of materials for advanced technologies that realize advanced | • Optical glass |
information terminals | • NANOCERAMTM |
Provision of materials that realize advanced driver assistance systems | |
Provision of materials for advanced technologies that realize advanced | • Fiber glasses for light guide |
medical services | |
Provision of materials for high-precision sensing technology | • Synthetic quartz glass |
• i-line high homogeneity glass | |
Provision of materials for advanced semiconductor manufacturing technology | |
• CLEARCERAMTM-Z | |
Contribution to technological development for the development and utilization | |
Human rights initiatives | Activities for promotion | Safety and health | ||
of women's participation | activities | |||
Internal reporting system (Helpline) |
Commitment to local communities
Sponsoring activities of residents' associations
Participating in local cleanup activities (Sagami River
Cleanup Operation)
Accepting factory tours and work experience students
7OHARA Report 2022
"No Car Day" campaign
Reduction of greenhouse gas (GHG) emissions
Activities Underpinning the Business Foundation
of outer space | • Non-browning glass |
Technological contribution in the astronomical research field | • Optical glass |
Provision of materials that improve the performance of lithium-ion batteries | • LICGCTM |
and realize solid-state batteries |
OHARA Report 20228
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Disclaimer
OHARA Inc. published this content on 17 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 July 2022 12:33:07 UTC.