OHARA INC.

Trusting Relationships
with Stakeholders

We disclose corporate information in a timely and appropriate manner and strive for sincere and highly transparent communication to ensure the correct understanding of and support for our corporate activities from society.

We disclose corporate information in a timely and appropriate manner and strive for sincere and highly transparent communication to ensure the correct understanding of and support for our corporate activities from society.

Communication with All Shareholders and Investors

OHARA discloses corporate information in a timely and appropriate manner and strive for sincere and highly transparent communication to ensure the correct understanding of and support for our corporate activities from society
At the annual general meeting of shareholders held in late January of each year, we strive to communicate OHARA’s vision and strategies in an easy-to-understand manner so that all shareholders can understand them. However, at the 113th Annual General Meeting of Shareholders, due to the public announcement of the priority measures to prevent the spread of the COVID-19 infection in Kanagawa Prefecture due to the spread of the disease, we ask shareholders to consider exercising their voting rights in advance in writing or via the Internet as much as possible and to consider refraining from attending the meeting.
On OHARA’s website, you can find timely disclosure materials, information on the general meeting of shareholders, dividend status, stock information, stock procedures, and other stock-related information, as well as the Integrated Report (this report). In addition, we provide information for individual investors to enable them to better understand OHARA, including our features and improvements. Furthermore, we hold financial report briefing sessions four times a year for institutional investors and securities analysts, and our IR division also responds to individual interviews as needed.

Pursuit of Quality

OHARA has been working on value co-creation with customers by providing products of stable quality through the development of materials and production technologies for “outstanding materials” that other companies cannot keep up with, with a primary focus on solving customers’ problems. In order to continue to deliver satisfaction to our customers, we will strive to improve high product quality and reliability through logical production and quality assurance by utilizing IoT, AI, and digitalization.

OHARA’s Quality Assurance

OHARA brings together its best technologies to provide glass materials that are the basis of key devices in all kinds of industries. As a material manufacturer that relies on the trust of customers, we strive to ensure high product quality and reliability through a consistent quality management system in all departments, from product development and manufacturing to quality assurance and service.
The special materials used in the optical glass and electronics sectors are highly evaluated by overseas customers, and OHARA is becoming more globalized every year. In addition, due to the globalization and increasing complexity of the supply chain, we aim to strengthen our system to promote the independence of our overseas bases to cope with globalization by deepening collaboration with overseas Group companies and partners in quality assurance activities. We aim to achieve the same level of quality for the various materials supplied from our overseas bases as those made in our mother factories in Japan. We will move towards value co-creation with customers by building strong relationships with them and solving problems

Material Measurement Technology

The evolution of semiconductor products is enriching our lives and advancing society. The volume of data transmission will increase while we advance ultra-fine technology known as nanotechnology, and we will grow along with the evolution of 5G smartphones, digital transformation (DX), autonomous driving, and a clean energy society. The quality of our lens materials, which make up the optical parts of the equipment that supports semiconductor exposure technology, depends on the homogeneity of the refractive index. Highly homogeneous lens material enables electronic circuits with extremely small line widths to be accurately transferred to semiconductor devices. This homogeneity is measured using OHARA’s optical interference technology to guarantee the quality of optical glass. Using a laser as the light source, the homogeneity of the refractive index of large-diameter lens (up to 450 mm in diameter) materials can be measured with an accuracy of 1×10-6
OHARA’s measurement technology is positioned as our core technology, and we will establish measurement, evaluation, and analysis technologies in line with the evolution of materials (new materials) in measurement technology, connecting the market and materials. This activity will refine new measurement and evaluation technologies that take into account new domains related to electronics as well as time horizons further into the future, from those developed in optical glass

Suppliers

OHARA sources high-quality raw materials and other materials at reasonable prices by establishing a procurement policy. In partnership with our suppliers, we carry out procurement activities based on CSR principles throughout our supply chains in order to pursue customer satisfaction and fulfill our social responsibility. We also require our supply chain partners to comply with laws, regulations, and social norms of the countries and regions where they operate

Procurement Information

The OHARA Group procures starting powders, raw materials, and other key constituents of a superior quality and a reasonable price in accordance with the following policies.

Procurement Policy

  1. Sincere corporate activities: OHARA engages in sincere corporate activities that comply with laws and social norms. Similarly, we also require our suppliers to comply with laws and social norms.
  2. Open door procurement: OHARA undertakes wide-open procurement activities in Japan and overseas based on a long-term international perspective.
  3. Promote fair transactions: Based on the principles of free competition, OHARA prioritizes excellent suppliers on the basis of quality, economy, delivery, and the reliability of the corporation.
  4. Procurement based on partnerships: OHARA strives to maintain and deepen mutual understanding with suppliers, and to build relationships of trust.
  5. Green procurement: For reasons of global environmental protection, OHARA prioritizes suppliers that consider the impact on the environment during use and at disposal. We also prioritize suppliers who engage with environmental protection in the supply manufacturing process.
  6. Prohibition against personal gain: OHARA does not accept offers of entertainment or gifts with the aim of obtaining inappropriate personal gain.

Requests for Suppliers

We ask all suppliers to pay attention to the following points to fulfill their social responsibility and pursue customer satisfaction based on partnerships with suppliers.

  1. Comply with laws and regulations, and social norms: Please comply with national and regional laws and regulations, and social norms when conducting business.
  2. Promote social contribution: Please engage with social contribution as good corporate citizens to be able to contribute to the development of international and regional society.
  3. Care for the environment: Please understand the environmental policy at OHARA, and consider environmental protection in business and procurement activities.
  4. Maintain information security: Please manage information carefully to avoid leaking information obtained in transactions with OHARA.
  5. Ensure product quality: Please provide materials and raw materials that meet the specifications and product quality required by OHARA.
  6. Fair prices: Please provide materials and raw materials at a price that is competitive on the market, and continually promote efforts to lower prices.
  7. Ensure reliable delivery and stable supplies: Please maintain stable and flexible supply structures for materials and raw materials, and ensure guaranteed deliveries to provide a continuous supply of products and to satisfy requests that involve sudden supply and demand fluctuations.
  8. Stable business management: Please implement stable business management to ensure continuous and stable supplies of materials.

Approach to Conflict Minerals

It has been an internationally significant issue that serious human-rights abuse is being committed by armed forces in dispute regions, including the Democratic Republic of the Congo and its neighboring countries. Minerals mined in such regions (tantalum, tungsten, gold and tin) are called conflict minerals. There is a concern that conflict minerals would serve as direct or indirect sources of funding for the local armed forces.
With respect to this issue, conflict minerals provisions under the Dodd-Frank Act were enacted in 2010. In addition, the Organization for Economic Co-operation and Development (OECD) issued a Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict Affected and High-risk Areas. Through the above, companies are being strongly required to take responsible initiatives in regards to their supply chains. OHARA has been advancing initiatives towards the non-use of conflict minerals by, for example, conducting surveys on the circumstances of use of minerals in products, in order to fulfill social responsibility in procurement activities.

Local Communities

We will maintain proper company activities so that harmony with local and international societies can be sustained. As “a good corporate citizen”, OHARA is determined to contribute to society.

Basic Stance on Local Communities

We build strong trusting relationships with local communities and engage in social contribution activities so that OHARA will remain as an indispensable company for local communities 100 years from now. The rose garden on the company’s premise has been enjoyed by local residents as the OHARA Rose Garden for over 60 years. We will continue to make efforts to contribute to the realization of a sustainable society.

Social contribution activities

Collection of pull-tabs

Collection of pull-tabs

We proactively engage in pull-tab collecting activities.
Certain amounts of pull-tabs collected can be used to donate a wheelchair.

Opening of the rose garden

The company’s second president Tadayoshi Akita, who had a passion for growing roses, started growing roses in the 1950s to create a park on the factory’s premise and give back to the community. The rose garden is now open to local residents to encourage them to feel more familiar with OHARA. Many people come and enjoy the garden during the rose blossoming seasons in spring and autumn.

Received Award from Kanagawa Trust Midori Foundation

We received an award for donating a part of the revenue from vending machines within the building to the Green fund-raising campaign.
To commemorate the receipt of the award, the planting of Japanese beauty berries was conducted by the parties involved.

Conducting Disaster Prevention Drills

Every year, we hold disaster prevention drills for all employees so that we can take prompt action in the event of a disaster. In addition to the basic fire extinguishing training, you will experience a seismic intensity of 7 with an earthquake experience car, raise awareness of disaster prevention, and learn how to prepare for and protect yourself from a major earthquake.

Accepting Factory Tours

As part of the local social contribution activities, OHARA accepts activities such as factory tours given to students from nearby schools.
In FY 2018, 121 fifth-grade elementary school students participated in the factory tours. In addition to glass, they also deepened their understanding of environmental initiatives.

Allowing Experience of Working

Further, two second-grade junior high school students visited the Company.
They commented that they realized how their work lead to the next stage, and it was a valuable experience that would be useful to them in the future.

Investment in Kanagawa Prefecture Green Bond

OHARA has invested in a green bond issued by Kanagawa Prefecture (Kanagawa Prefecture’s 2nd 5-year publicly offered public bond). A green bond is a type of bonds issued to raise funds for environmental improvement projects.
The bond conforms to the characteristics of a green bond defined by the International Capital Market Asso-ciation (ICMA) and has received a second party opinion from Rating and Investment Information, Inc. (R&I). The proceeds from the issuance will be used to fund new projects for rivers, coasts, and soil erosion control un-der the Kanagawa Prefecture Water Disaster Prevention Strategy.

Investment in Sagamihara City Green Bond

OHARA has invested in a green bond issued by Sagamihara City (Sagamihara City’s 1st 10-year publicly offered public bond). A green bond is a type of bonds issued to raise funds for environmental improvement projects.
The bond conforms to the characteristics of a green bond defined by the International Capital Market Asso-ciation (ICMA) and has received a second party opinion from Rating and Investment Information, Inc. (R&I). The proceeds from the issuance will be used to fund new projects for rivers, coasts, and soil erosion control un-der the Kanagawa Prefecture Water Disaster Prevention Strategy.

Employees

We strive to improve our abilities to create value and respond to changes by creating a safe, comfortable work-ing environment and a free, open corporate culture both of which praise challenges and foster a workplace where diverse human resources can play active roles.

~Corporate Message~
Culture

  • Proceed with integrity
  • Craftsmanship without compromise
  • Initiate a continuous cycle of challenge
  • Work together as ‘All OHARA’
  • Respect, transformation & growth

The human resources that the OHARA Group aims for is equipped with the five elements indicated by OHARA’s Culture in the Corporate Message, who take on challenge themselves, inspiring themselves and inspire others around themselves to create value and contribute to the sustainable growth of the Group and the development of society.
In order to nurture a place where such human resources can play an active role, we will implement training that encourages challenging behavior and accepts diversity and cooperates, creating new value and promoting the metabolism of the organization.
In addition, we will actively engage in mid-career recruitment in order to acquire diverse human resources, including those with specialized knowledge and non-Japanese nationals.

OTHER CONTENTS

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The things we focus on in manufacturing are explained.