ANNUAL REPORT 2022
Business Principle
The Group strictly complies with all laws and regulations, conducts fair business practices and creates unrivaled value for society and industry through the provision of key materials and technologies.
Contents
02 Value Creation Story
02 Continuously creating new value in response to societal demand and changing requirements
04 Promptly responding to changes in economic conditions and the business environment and forging unrivaled strengths
06 A value creation process unique to the Shin-Etsu Group
08 Financial Highlights
09 Non-Financial Highlights
27 Business Activity
- Technologies, Materials and Products of the Shin-Etsu Group
- Business Overview
- Infrastructure Materials
32 Electronics Materials
36 Functional Materials
39 Processing & Specialized Services
40 Management Foundation
10 Management Message
10 Chairman's Message
12 President's Message
46 Sustainability
14 Sources of Our Competitiveness
50 Data Section
15 Financial Capital
50 Ten-Year Summary
52 Shin-Etsu Group Companies
16 Manufacturing Capital
54 Investor Information
18 Human Capital
55 Corporate Information
- Intellectual Capital
- Social and Relationship Capital
- Natural Capital
Editorial Policy
This report is compiled and issued every year so that shareholders, investors, and all other stakeholders can gain an understanding of the Shin-Etsu Group's corporate activities. This report covers Shin-Etsu Chemical Co., Ltd. (Shin-Etsu Chemical) and its consolidated subsidiaries in Japan and overseas. In compiling this report, we referred to the Value Reporting Foundation's (VRF)* International Integrated Reporting Framework and the Guidance for Collaborative Value Creation developed by Japan's Ministry of Economy, Trade and Industry (METI).
In the 2022 edition of the report, we added pages with information about each of the six types of capital that function as the sources of the Shin-Etsu Group's competitive advantages. We also redesigned the layout of the report so the overall picture of the Group's value creation could be easily digested by readers.
*The VRF was established in June 2021 through a merger between the International Integrated Reporting Council (IIRC) and the US Sustainability Accounting Standards Board (SASB).
For more detailed information, follow the links below:
IR Information | Sustainability Information |
https://www.shinetsu.co.jp/en/ir/ | https://www.shinetsu.co.jp/en/sustainability/ |
Materials for
the Future
Since its founding 96 years ago, Shin-Etsu Chemical has long contributed to the development of society by continually providing high-quality materials and products to meet the needs of the times. With issues in society becoming increasingly diversified, we believe there to be missions that only the Shin-Etsu Group can fulfil as a company in the industrial upstream sector.
A new material for wearable devices that we brought to market in 2021 harnesses the special characteristics of silicone, thereby eliminating any wearer discomfort and stably collecting electrocardiogram (ECG) signals. By addressing rising demand for home-based medical care, we are helping to bring about a longevity society.
We provide society with materials for the future. By continuing to deliver products of high added value to the world, we seek to contribute to the realization of a sustainable society.
ANNUAL REPORT 2022 | 1 | |
Value Creation Story
Continuously creating new value in response to societal demand and changing requirements
Since its establishment in 1926 as Shin-Etsu Nitrogen Fertilizer Co., Ltd., the Shin-Etsu Group has continually transformed its business with an eye to the future, and today holds the top share of the global market for many products, including PVC and semiconductor silicon.The Shin-Etsu Group will therefore continue to create new value in response to societal demand and changing requirements aiming to become a leading global company in products that are fundamental to industry and daily life.
FY2005
Net sales exceeded ¥1.0 trillion
Overseas sales | FY1994 |
Domestic sales | Net sales exceeded ¥500.0 billion |
Capital investment
FY1997
Conducted capital investment worth ¥136.3 billion
1990 | 2000 |
Initiatives of
the Shin-Etsu
Group
1950s-1960s | 1970s-1980s | |
Formation of business foundation | Enhancement of existing businesses and | |
global expansion |
Societal issues and needs
Silicone products when production first started
- Launched PVC production
- Began production of silicon wafers
- Started production of silicones
- Launched production of cellulose derivatives
- Development of domestic social infrastructure and increased demand for construction
- Spread of home appliances associated with high economic growth
Shintech's newly opened PVC plant
- Started production of PVC in Texas, USA
- Overseas expansion of semiconductor silicon business
- Overseas expansion of silicones business
- Began production of rare earth magnets
- Launched production of optical fiber preform
- Development of global social infrastructure and economy
- Development of integrated circuits for semiconductor devices and diffusion of personal computers
- Spread of communication networks toward an information- oriented society
2 Shin-Etsu Chemical Co., Ltd.
Total sales | 2.5 trillion | ||
FY2021 | ¥2,074.4 | ||
Net sales exceeded ¥2.0 trillion | billion | ||
2.0 trillion
FY2018
Net sales exceeded ¥1.5 trillion
1.5 trillion
Overseas sales
¥1,607.1
billion
FY2019 | 1.0 trillion |
Conducted capital investment worth ¥265.0 billion |
FY2007
Conducted capital investment worth ¥268.4 billion
0.5 trillion
Domestic sales
¥467.3
billion
0
2010 | 2020 | 2021 | |
1990s-2000s | 2010s-2020s | ||
New challenges/Corporate structure reform/ | New growth strategy development | ||
Enhancement of international competitiveness | |||
300mm wafer building (Shin-Etsu Handotai's Shirakawa Plant)
- Acquired PVC and cellulose businesses in Europe
- Built two PVC plants in Louisiana, USA
- Started mass production of 300mm silicon wafers
- Began production of silicone monomers and polymers in Thailand
- Commercialized photoresists and photomask blanks businesses
- Increase in infrastructure demand in Europe, the Middle East, and Africa
- Diffusion of cell phones
- Spread of the Internet
- Growth in global awareness of the need to reduce environmental impact
Shintech's new plant in Louisiana
- Started production of ethylene in the US (ensured stable and flexible product supply by establishing an integrated production system for PVC from raw materials)
- Began integrated production of rare earth magnets in Vietnam
- Started mass production of low-dielectric resins (5G-related products)
- Growth in US housing demand
- Global EV shift
- Development of next-generationhigh-speed communication technologies (AI, IoT, 5G)
ANNUAL REPORT 2022 | 3 |
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Disclaimer
Shin-Etsu Chemical Co. Ltd. published this content on 26 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 July 2022 13:38:00 UTC.