December 2016
OSAKA SODA CO., LTD.Administration Division
1-12-18, Awaza, Nishi-ku, Osaka 550-0011, JapanTelephone: +81-6-6110-1560
Facsimile : +81-6-6110-1603
http://www.osaka-soda.co.jp
OSAKA SODA REPORT 2016
02
Net Sales
Earnings per Share/ Dividend per Share (Annual)
Return on Equity (ROE)
Production Volume/CO2 Emissions
Operating Income/Ordinary Income/Net Income
Total Assets/Net Assets/Shareholder's Equity Ratio
Energy Consumption (Crude Oil Equivalent)
Recycling and Reuse Rate
120,000
100,000
80,000
60,000
40,000
20,000
0
82,489 83,14991,621
101,365
2011 2012 2013 2014
102,125
2015
(Millions of yen)
(FY)
50
40
30
20
10
07.00 7.00 7.00 8.00
18.41
27.41 28.7632.75
2011 2012 2013 2014
10.00
34.23
2015
Earnings per share (EPS)Dividend per share (annual)
(FY)
(Yen)
8
7
6
0
5.7
7.97.6
7.77.5
(%)
2011 2012 2013 2014 2015(FY)
800
600
400
200
0
400
300
200
100
0
23.025.4 27.2 27.4
638596 570 579
27.5601
2011 2012 2013 2014 2015
Production volume CO2 emissions(1,000t) (1,000t)
(FY)
8,000
6,000
4,000
2,000
0
1,940
2,888 3,0293,450 3,606※
4,2465,025 5,241
5,7476,443
4,0824,538 4,751
5,172
6,439
2011 2012 2013 2014 2015
(Millions of yen)
(FY)
Operating incomeOrdinary incomeNet income
100,000
75,000
50,000
25,000
0
55
50
45
40
0
34,843 38,246 41,61547,704
67,67776,804
84,326100,893
51.4
49.7 49.3
47.348,296
97,027
49.8
(%)
2011 2012 2013 2014 2015
(Millions of yen)
(FY)
Total assets Net assets Shareholder'sequity ratio
150
100
50
0
124 117109 109 111
2011 2012 2013 2014 2015
(1,000kL)
(FY)
100
90
80
0
84 84
8991
93
2011 2012 2013 2014 2015
(%)
(FY)
Something Better with Chemicals for Society and the Future
The OSAKA SODA Group was founded with the establishment of unique electrolysis technology in 1915, and since then has contributed to the development of Japan's chemical industry as a pioneer in the alkali industry. Throughout the more than 100-year history of our Group, we have responded to the ever-changing needs of the day and expanded our scope of business in the fields of basic chemical products, functional chemical products, electrodes, fine chemicals, healthcare, biotechnology, and the environment. We have now set “Be a company growing by business expansion of specialty chemicals” as our Group Vision as we aim for corporate growth. The Group will create new value and contribute to the realization of a more affluent society through its business activities.
Editorial Policy:This OSAKA SODA Report comprehensively covers the strengths of the Group's business, growth strategy, performance, environmental preservation, quality assurance and other information with the objective of reporting the overall picture of our environmental safety efforts and business activities to all of our stakeholders in a way that is easy to understand. Through this report, we look forward to an even deeper understanding of the Group's business activities, which will pave the way to future initiatives aimed at the realization of a sustainable society.
Reporting Period: Fiscal 2015 (April 1, 2015 – March 31, 2016)Data on industrial accidents is collated on a calendar year basis.
Reporting Entities: OSAKA SODA CO., LTD. and our subsidiariesFinancial data is on a consolidated basis. Environmental data covers all sites of OSAKA SODA CO., LTD., the Mizushima Plant of OKAYAMA CHEMICAL CO., LTD., and the Matsuyama Plant of SANYO FINE CO., LTD.
Financial Highlights (consolidated)/Non-Financial Highlights
Table of Contents
● Financial Highlights (consolidated)/ Non-Financial Highlights
● To our stakeholders
● Business transformation
● Business characteristics
● Medium-term management plan
● Corporate governance
● Compliance system
● Responsible care
● Environmental conservation activities
● Quality assurance
● Corporate information / Stock information
P02
P03P05P07P08P09P10P10P12
P13P14
MissionStatement
To realize an affluent society bydeveloping innovative products throughour aspirations for high standards
CorporateSlogan
Something Better with Chemicals
GroupVision
Be a company growing by business expansion ofspecialty chemicals1. Earning power Strengthen high-value added specialty chemicals2. Growth potential Engage in businesses that can compete in markets with a high growth potential3. Technology Develop original technologies with the frontier spirit4. Strategic investments Promote strategic investments based on stable financial base5. A corporate culture that embraces challenges Develop human capital with courage, passion, creativity, and energy
Japanese Subsidiaries・DAISO CHEMICAL CO., LTD.・DAISO ENGINEERING CO., LTD.・SANYO FINE CO., LTD.・JMR CO., LTD.・DS LOGISTICS CO., LTD.・OKAYAMA CHEMICAL CO., LTD.・DS WELLFOODS CO., LTD.* *Non-consolidated
Overseas Subsidiaries・DAISO CHEMICAL(Shanghai) CO., LTD.・TAIWAN DAISO CHEMICAL CO., LTD.・DAISO Fine Chem USA, Inc.・DAISO Fine Chem GmbH・DAISO CHEMICAL(THAILAND) CO., LTD.
※ Forecast for net income attributable to shareholders of the parent company
03 04
We aspire to remain a company that contributes tothe world with unique and innovative technological capabilities.
To our stakeholders
Supporting the development of industry through developing innovative productsWe used unique technology to develop a method for manufacturing caustic soda through electrolysis, then the most advanced technology in the world, and founded the Company in 1915. Through this, we set a path for domestic production of caustic soda, supporting the dawn of many industries by stably supplying raw materials to the paper manufacturing and textile industries, which at that time were becoming the key industries of the nation. Since that time, we have expanded our business into basic chemical products that include chlor-alkali, allyl chloride and epichlorohydrin based on the electrolysis business. We have also advanced into functional chemical products such as synthetic resins and synthetic rubber, as well as healthcare-related products, such as active pharmaceutical ingredients and their intermediates and purification materials. The OSAKA SODA Group has always promoted technological development that values innovation in order to respond flexibly to the development of industry and the changing times. The products produced out of this have gained leading shares of the global market in niche sectors and have grown to play active roles in diverse industries, including the fields of automobiles, office automation, ink, and pharmaceuticals.
Aiming for a more affluent world by deepening global niche technologiesUnder our in-progress NEXT FRONTIER-100 medium-
term management plan, we are working to expand our business with a focus on global niche products with the aim of achieving our Group Vision, which is “Be a company growing by business expansion of specialty chemicals.” We have positioned creating new products and businesses, expanding the global business and cultivating the healthcare-related business as the top priorities among the basic policies of NEXT FRONTIER-100, and it is our goal to provide high value added products in even more fields. In particular, we are concentrating our efforts on developing new materials based on our unique technologies for the energy and environment sectors. We aspire to contribute to the creation of a sustainable society through technological innovation.
Initiatives to support the improvement of corporate valueAs “an enterprise friendly to both people and the environment,” we actively promote initiatives aimed at harmony with the global environment and local community, including responsible care activities as well as constant improvements to our corporate governance and compliance frameworks and human resource development. In particular, in addition to reducing CO2 emissions by using the hydrogen generated from soda electrolysis as energy, we are striving to reduce the environmental impact caused by our production activities, including promoting energy conservation and reducing industrial waste.
As a company engaged in manufacturing and handling chemical substances, we are also contributing to environmental conservation by providing environmentally conscious products and technologies, including the manufacture of CABRUSTM, an additive for low fuel consumption tires, and the development of resource recycling systems. Moreover, not only do we take part in responsible care activities that include product safety and quality assurance, customer response, chemical substance management, occupational safety and health and accident prevention, and logistics safety, but we also strive to deepen mutual communication with local communities to enable us to contribute to sustainable societies. By maintaining and improving the initiatives featured in this report, we not only aspire to be a corporate group trusted by the community but also one that is expected to grow. In order to achieve that, we will work to meet the expectations of diverse stakeholders, including shareholders and local communities, and improve corporate value by continuing to pursue challenges as a company with true energy and innovative capability. I ask you all for your continued support and encouragement.
October 2016Tamotsu SatoRepresentative Director,Chief Executive OfficerOSAKA SODA CO., LTD.
From 1913~Company founding and establishment of
corporate platform
From 1960~
Entry into organic chemicals business
From 1970~
Construction of AC / EP chain
From 1990~
Taking on the challenge of new business domains (expansion into healthcare, energy and environment sectors)
100
80
60
40
20
0
(Billions of yen)
Basic Chemical Products Functional Chemical Products Healthcare
Other
Salt
Electricity
Caustic Soda
Chlorine Gas
Sodium Hypochlorite
Diallyl Phthalate (DAP) Resin
Electrodes
Material Recycling
Allyl Ethers
Hydrogen Gas
Caustic Potash
Sodium Chlorate Sodium Chlorite
Propylene
Chlor-Alkali
AC / EP Derivatives
Polysulfide Silane Coupling Agent
Silica Gel for Liquid Chromatography
Decorative Laminated Material
Optically Active Compounds
Active Pharmaceutical Ingredientsand their Intermediates
Health Food Ingredients
Net sales
ElectrolysisTechnology
(AC)
(EP)Hydrochloric Acid
Allyl Chloride
AC / EP Chain: Foundation ofInnovative Product Development
2015100th
anniversary ofestablishment
2014Net sales¥100 billion
Epichlorohydrin
Epichlorohydrin Rubber
:Global Niche Top (GNT) products
05 06
Developing innovative products.The needs of society and industry change constantly, and we respond to those needs, creating new value.
Business transformation
1915Established OSAKA SODA CO., LTD. in Osaka forthe manufacture and sale of caustic soda
1913Established fi rst-in-Japan manufacturing method for caustic soda using electrolysis based on original technology
1961Opened Research CenterStarted production of allyl chloride
1962Started production of diallyl phthalate(DAP) resin
1978Started production of allyl ethers
1979Started production ofepichlorohydrin rubber
1971Opened Mizushima PlantStarted production of epichlorohydrin
1917Opened Kokura Plant
1931Opened Amagasaki Plant
1949Listed on the First Section of the Osaka Stock Exchange
1952Opened Matsuyama Plant
1953Listed on the First Section of the Tokyo Stock Exchange
1988Changed the company name toDAISO CO., LTD.
1990Opened Düsseldorf Representative Offi ce
1992Started production of CABRUSTM,a Polysulfi de Silane Coupling AgentStarted production of silica gel for liquid chromatography
2001Established JMR CO., LTD.
2005Established DAISO CHEMICAL (Shanghai) CO., LTD.
2006Established TAIWAN DAISO CHEMICAL CO., LTD.Established DAISO Fine Chem USA, Inc.
2008Established DAISO Fine Chem GmbHAcquired all the shares of SANYO FINE CO., LTD.
2014Selected among Global Niche Top Companies Selection 100 by Ministry of Economy, Trade and Industry for diallyl phthalate (DAP) resin
2012Established DAISO CHEMICAL (THAILAND) CO., LTD.
2015Changed the company name to OSAKA SODA CO., LTD.
07 08
Business characteristics Medium-term management plan:NEXT FRONTIER-100(FY2014 ~ FY2018)
Since April 2014, we have been working on our five-year medium-term management plan, with fiscal 2018 as its final year, which sets, “Be a company growing by business expansion of specialty chemicals” as the Group Vision.
Our Company has achieved quality and cost optimization through full in-house production from basic chemical products to functional chemicals making use of the electrolysis business. In particular, the highly original products which we manufacture using AC and EP as raw materials have acquired No. 1 shares in the global market. Through our pursuit of a competitive edge in the electrolysis business, our basic chemical products deliver competitiveness both in terms of cost and quality as raw materials for our functional chemical products. Meanwhile, demand for our functional chemical products is expanding due to active development of applications into fields with high growth potential, thus contributing to the expansion of our basic chemical products business. In this way, we have built a business model that seeks growth through synergies between both the basic chemicals products and the functional chemicals products businesses.
Overview of our NEXT FRONTIER-100 medium-term management plan
Stage1(FY2014~FY2015)
Stage2(FY2016~FY2018)
GroupVision
Be a company growing by business expansion of specialty chemicals
Net Sales: ¥130 billion, Ordinary Income: ¥10 billion, ROE: 10% or higher
Group Vision
Fiscal 2018 goals
Basic policy
1 New products and new business creation
2 Overseas business expansion
3 Nurturing of the healthcare-related business
4 Restructuring and reinforcement of existing businesses
5 Promotion of strategic investment and reform of systems
Fiscal 2018 goals
1
2
3
New products and new business creation
Overseas business expansion
Nurturing of the healthcare-related business
Promote development of new products and new businesses centered on application themes for original technologies
Expand with a focus on global niche top products
Nurture healthcare-related business into a third pillar of profit
Ratio of newproduct sales
20%
Ratio ofoverseas sales
25%
Net sales
¥10billion
Energy and environment
Synthetic resin and Synthetic rubber
Silica Gel for Liquid Chromatography
Silica Gel for Liquid Chromatography
Health food ingredients
Life science
Allyl Ethers
APIs and their intermediates
Sterilization and disinfection agents
● New heat resistant rubber● Resins for plastic UV ink● Materials for power storage devices
● Synthetic resin: develop demand for UV ink in European, US and Asian markets● Synthetic rubber: promote response to expansion of demand in emerging countries and shift to local procurement
● Gain market share in Europe, US and Asia for pharmaceutical purification applications● Expand business through introduction of new grades and expansion into peripheral materials
● Develop new grades● Open up new pharmaceuticals purification field● Enter the column business
● Strengthen product planning
● Pharmaceutical purification materials● New APIs and their intermediates● Sterilization and disinfection products● Health food ingredients
● Expand share of use in silane coupling agents in the European and US markets
● Expand into generic pharmaceuticals● Acquire new active pharmaceutical ingredients and their intermediates by introducing specialized reaction equipment● Strengthen investigational drugs business
● Sterilization agents for large-scale facilities
The AC / EP chain is arguably the foundation of our innovative product development. Many of the products we manufacture using AC and EP deliver outstanding performance in physical properties including electrical insulation, semi-conductivity, heat resistance, oil resistance, and reactivity, and are not easily replaced with other materials. Their manufacture also requires specialized technologies and knowledge, making entry into the field difficult for competitors. As a result, our products have cemented No. 1 market share positions in Japan and overseas despite being niche products, securing stable demand and maintaining high value added.
Niche top products
Pursue top global competitivenessPursue top global competitiveness Active expansion intohigh-growth fieldsActive expansion intohigh-growth fields
Promotion of the Global NicheTop strategy
Diallyl Phthalate ResinEpichlorohydrin RubberAllyl Ethers
Functional Chemical ProductsFocus on structural reform to
enhance profitability
Electrolysis Business (caustic soda, chlorine, etc.)Allyl Chloride (AC)Epichlorohydrin (EP)
Basic Chemical Products
AC / EP Chain
Expand scale of business
Strengthen competitiveness
Diallyl Phthalate Resin
Polysulfide Silane Coupling Agent (CABRUSTM)
Epichlorohydrin Rubber
Electrodes
Allyl Ethers
Epichlorohydrin
Silica Gel for Liquid Chromatography
Sodium ChlorateSodium Chlorite
•UV inks•Hot stamping•Electronic components
•Low fuel consumption tires
•Heat-resistant and oil-resistant hoses for automobiles•Rubber rolls for OA equipment
•Thin steel plated sheets for the housing of consumer electronics, etc.
•Silane coupling agents•High-grade metal coatings•Carbon fiber reinforcement
•Semi-conductors, laminated boards, anti-rust coatings
•Precision analytical instruments•Purification materials for pharmaceutical products
•Bleach for paper, pulp and textiles
No. 1in the world
No. 1in the world
No. 1in the world
No. 1in the world
NEXT FRONTIER-100
Silica gel for pharmaceutical purificationHigh polymer gel electrolytes
Overview of the AC / EP Chain
No. 1in Japan
No. 1in Japan
No. 1in Japan
No. 1in Japan
What Is Responsible Care?Responsible Care (RC) is a voluntary management initiative taken by companies engaged in the manufacture or handling of chemical substances for implementing improvements and procedures in support of health, safety and environmental protection. Through this initiative, management policies are adopted to protect the environment and uphold safety over the entire product life cycle of chemical substances from development to manufacture, distribution, use, fi nal consumption, and disposal. This approach is based on the principles of self-direction and acceptance of responsibility. In April 2003, the Representative Director, Chief Executive Offi cer, the most senior member of the management team, made a declaration of the Company’s basic policy on Responsible Care.
Basic Approach of Responsible Care● While strictly complying with relevant laws and regulations, OSAKA SODA shall make continuous progress
with voluntary management initiatives by setting voluntary criteria related to integrated safety management of chemical substances in keeping with the spirit of Responsible Care.
● We shall develop and maintain this management system. All directors and employees shall act with purpose and address targets indicated by our policies.
● We shall expand our public communication eff orts and strive to gain further public trust.● We shall provide training and education for practical application and better understanding of our policies.
Responsible Care Policies1.Environmental Preservation
(1)Promoting environmental preservation by ensuring harmony withthe natural environment
(2)Taking steps to reduce environmental impacts during the developmentof products and processes while promoting conservation of energy andresources
(3)Communicating to maintain harmony with the local community whileseeking conservation and improvement of the living environment
2.Process Safety and Disaster Prevention(1)Prevention of accidents and disasters(2)Maintaining a crisis management system(3)Implementing thorough management of high-pressure gases and
hazardous materials and the like(4)Implementing process safety controls for facilities and equipment
3.Occupational Safety and Health(1)Eliminating work accidents(2)Enhancing and improving the work environment(3)Taking steps to maintain and promote good health
4.Distribution Safety(1)Ensuring the safety of product transport by strictly complying with legal
and other requirements(2)Reducing safety risks during the product transport and distribution stages
5.Quality Assurance and Chemical & Product Safety(1)Providing customers with excellent products according to our
mission statement(2)Ensuring product safety, quality assurance, and the safety of the chemicals
we handle based on appropriate Responsible Care, quality andenvironmental management systems
(3)Reducing costs while placing a priority on quality6.Dialogue with the Public
(1)Reporting our Responsible Care activities and other initiatives torelevant groups and organizations.
(2)Proactively engaging in dialogues and activities with local communities.After implementing our RC activities, we offi cially announced this policyboth inside and outside the company.
09 10
【Organizational Structure of Responsible Care】
RC CommitteeRC Promotion Conference
(2)Ensuring product safety, quality assurance, and the safety of the chemicals
RC CommitteeRC Promotion Conference
Review of plan and incorporationof changes in the plan for thesubsequent fiscal year accordingto the RC action report and
legal requirements
RC Internal AuditISO Internal AuditRC Internal AuditISO Internal Audit
Audit and report on RC actionstatus
CEO
RC CommitteeChairman: Director Responsible for RCMembers: Divisional managers, general manager of labor unionOffice: RC & Quality Assurance Department
Plant RC Committee(Occupational Safety & Health and ProcessSafety & Disaster Prevention Committee)Chairman: General Manager of workplace
RC Internal AuditISO Internal Audit
Serious Accident PreventionFollow-up
RC PromotionConference
Reports
Reports& Proposes
Instructs
Instructs& Promotes
Reports
Checks
We are continuously improving our RC activities ̶ including OccupationalSafety & Health and Process Safety & Disaster Prevention ̶ by adoptingthe PDCA cycle.
RC CommitteePlant RC Committee
Chairman: General Manager of workplace
We are continuously improving our RC activities ̶ including OccSafety & Health and Process Safety & Disaster Prevention ̶ by athe PDCA cycle.
RC CommitteePlant RC Committee
RC targets and measures for thefiscal year and adoption of the RC
action planAdoption of the RC action plan
at workplaces
Plants
We are continuously improving our RC activities ̶ including OccupationalSafety & Health and Process Safety & Disaster Prevention ̶ by adopting
PlantsActivities based on the RCaction plan and campaigns toprevent serious accidents
ACTIONCHECK
PLAN DO
The Company has established the Compliance Committee under the direct supervision of the Representative Director, Chief Executive Offi cer to create and maintain the compliance system. We have also established the Information Management Committee, the Fair Trade Management Committee, and the Trade Committee as expert committees to set up a system to handle specialist legal
issues. In addition, for the further enhancement of the compliance structure, we have set up a system to engage the services of lawyers as outside committee members for the Compliance Committee and the expert committees, whereby we seek legal opinions in an appropriate manner.
Corporate Governance
Compliance System
General Shareholders’ Meeting
Board of Directors
AccountingAuditor Representative Director,
Chief Executive Officer
Divisions Affiliated Companies
Board of Auditors
Internal Auditing Department
Management Committee
Compliance Committee(Internal Whistleblowing Helpdesk)
RC Committee
Quality Assurance Committee
Responsible Care: RC
Corporate governance/Compliance system/Responsible care
Basic ApproachOSAKA SODA considers it important to create and maintain an organizational structure that can be agile in responding to the management environment and a fair management system focused on shareholders. Moreover, as a company with a board of corporate auditors, we have introduced a management system that enables appropriate supervision and monitoring alongside good decision making by the directors and implementation of operations by the executive offi cers. By doing this, we are working to enhance our corporate governance and improve its eff ectiveness.
Board of DirectorsThe Board of Directors is composed of six directors, two of whom are outside directors. As a rule, it meets once a month to deliberate on important matters as well as discuss the progress of business performance and actions to be taken in accordance with the rules of procedure for the Board of Directors. In addition, we have made the term of offi ce for directors one year and introduced an executive offi cer system that allocates the management decision-making and the executive oversight functions to the Board of Directors and the implementation of operations to the executive offi cers. Our aim is effi cient corporate management and clarifi cation of responsibility.
Management CommitteeComposed mainly of directors, the Management Committee is an advisory body for the Representative Director. The Committee deliberates important issues in the performance of the duties of the directors, forming a structure under which decision making by the Representative Director is understood and implemented accurately.
Board of AuditorsThere are three auditors, two of whom are outside auditors. The auditors attend meetings of the Board of Directors in addition to actively participating in important internal company meetings, enabling them to supervise the execution of duties by the directors adequately.
Outside Directors and Outside AuditorsThe Company has appointed two outside directors and two outside auditors with the aim that they will perform the role of advising and supervising the Company’s management from an external perspective with an independent standpoint. Both of the outside directors have a wealth of experience as managers and extensive insight into the business world and one of them has worked as an outside auditor at the Company. They were appointed as outside directors in order to refl ect their experiences in the Company’s management. Both of the outside directors have been designated as independent offi cers. One of the two outside auditors has many years of experience in fi nancial institutions with a wealth of knowledge concerning fi nance and other areas and has been appointed as an outside auditor in order to refl ect this experience and knowledge in the auditing and supervision of the Company. As an attorney-at-law, the other outside auditor is well versed in corporate law with a considerable degree of legal knowledge concerning fi nance and accounting and has been appointed as an outside auditor and designated as an independent offi cer to refl ect this knowledge in the auditing and supervision of the Company.
Under our Group mission statement, which is “To realize an affl uent society by developing innovative products through our aspirations for high standards,” the OSAKA SODA Group's CSR entails striving to be able to contribute to a sustainable society through chemicals. Moreover, we not only engage in fair business activities based on our corporate governance and compliance frameworks but, as an enterprise that manufactures and handles chemical products, we also promote responsible care activities to implement CSR initiatives that take into account the concerns of diverse stakeholders. Our responsible care activities include environmental preservation, process safety and disaster prevention, occupational health and safety, and dialogue with the public. By introducing these activities in this report, we aim to enhance understanding of the OSAKA SODA Group and communication.
Corporate Governance System (as of June 29, 2016)
Targets and Results of Responsible Care Activities Material Balance of Production Activities
11 12
The chemical industry has adopted the goal of achieving an average energy consumption rate of 80% compared to the fi scal 1990 level for the period from fi scal 2008 to 2012; moreover, it has also voluntarily adopted environmental preservation activities on a global scale. And from fi scal 2013, the new plan “Commitment to a Low-Carbon Society” (from fi scal 2013 to 2020) has started. OSAKA SODA is taking steps to reduce its environmental impacts through initiatives to conserve energy, reduce wastes, and prevent global warming while strictly complying with legal and other requirements; moreover, we respond to emergencies in our business operations as one of our RC activities. Our three mainline plants (Amagasaki, Matsuyama and Mizushima) and affi liated companies have received ISO 14001 certifi cation, the international standard for environmental management systems, and are continuously adopting improvements.
Our production volume increased by 5% in fi scal 2015, compared to fi scal 2014, but water consumption increased by 11%. This was mainly because the product mix changed. Atmospheric emissions were the same as in the previous fi scal year with the appropriate operation of a boiler powered by alternative forms of energy such as hydrogen and city gas. The material balance resulting from our production activities during fi scal 2015 is shown below (data excludes Mizushima Plant of OKAYAMA CHEMICAL CO., LTD.).
RECYCLE
OUTPUT
INPUT
Water18,585 thousand t
Energy consumption(crude oil equivalent)111 thousand kl
Raw materials265 thousand t
Production of goods601 thousand t
Packingused for shipment*
200t
Packingvoluntarily collected
66t
OUTPUT
CO2275 thousand t
SOX0.35t
NOX24t
Ash dust1.37t
COD215t
Nitrogen69t
Phosphorus7t
Wastewater26,396 thousand t
Waste
PRTR
Total 24,529tLandfilled 1,679t
Released 41.2tTransferred 94.5t
*Packing used for shipment represents the weight ofthe paper bags, plastic bags, and polyester containersused as packaging materials for our products.
Targets for Fiscal 2016ISO 14001 Certifi cation
Environmental conservation activities
Targets for Fiscal 2015 Results for Fiscal 2015 Long-term Targets
EnvironmentalPreservation
Process SafetyandDisaster Prevention
Occupational Safetyand Health
DistributionSafety
Quality Assuranceand Chemical& Product Safety
Dialoguewith Society
・To ensure proper operation of environmental impact reduction equipment and to improve the recycling rate
・To reduce CO2 emissions and energy consumption to 80% or less of the fi scal 1990 level
・To promote ongoing measures to prevent serious accidents and disasters
・To eliminate work accidents
・To maintain safe transport and eliminate in-plant truck loading accidents
・To ensure stringent compliance with laws targeting chemical products
・To publish an RC activity report and submit it to the government and topromote communication with society
・CO2 emissions were100.8% comparedto the fi scal 1990 level.
・Signifi cantly impacted by the increase in the CO2 emission coeffi cient for electric power, the crude oil equivalent per unit ofconsumption (kl/t) was 87.2% of the fi scal 1990 level and 98.4% of the previous fi scal year.
・The achievement rate for implementingmeasures to prevent serious accidentswas approximately 100%.
・Number of work accidents in fi scal 2015: ten (four in the previous year), so a signifi cant increase, but eight were accidents with no lost worktime.
・Distribution accidents increased to nine (two in the previous year) despite implementation of measures to eliminate accidents.
・Appropriate procedures in accordance withREACH in Europe and regulation in other areas and countries about chemical products were carried out.
・Submitted reports to the governmentand to the Japan Chemical IndustryAssociation.
・To reduce environmental impacts during the development of products and processes while promoting conservation of energy and resources
・To seek harmony with the local community while preserving and improving the living environment
・To prevent accidents and disasters
・To maintain a crisis management system
・To implement stringent management of high-pressure gases and hazardous materials and the like
・To implement process safety controls for equipment
・To eliminate work accidents
・To enhance and improve the work environment
・To maintain and promote good health
・To ensure the safety of product transport by strictly complying with legal and other requirements
・To reduce safety risks during the product transport and distribution stages
・To provide our customers with excellent products according to our corporate philosophy
・To give top priority to chemical and product safety under our stringent RC, quality, and environmental management system
・To reduce costs while placing a priority on quality
・To respond appropriately to requests forinvestigations and to provide reports on ourbusiness operations
Environmental Preservation
Process Safety and Disaster Prevention
Occupational Safety and Health
Distribution Safety
Dialogue with Society
Quality Assurance and Chemical& Product Safety
To ensure proper operation of environmental impact reduction equipment, reduce environmental impact and improve the recycling rateTo improve energy consumption rate by 1% a year and reduce CO2 emissions. Also to reduce external landfi ll rate for industrial waste to 7% or lowerTo make eff orts to reduce CO2 emissions in line with chemical industry’s “Commitment to a Low-Carbon Society”
To continually promote measures against serious accidents and prevent accidents and disastersAlso to strengthen responses to emergencies
To eliminate work accidents (To introduce non-technical education and training aimed at zero accidents with lost worktime)
To maintain safe transport and eliminate in-plant truck loading accidents
To publish an RC activity report and submit it to the government and to promote communication with society
To ensure stringent compliance with laws targeting chemical products
Plant Date of Certifi cation Certifi er Registration Number
Amagasaki Plant
Matsuyama Plant (includes Matsuyama Plant of SANYO FINE CO., LTD.)
Mizushima Plant (includes Mizushima Plant of OKAYAMA CHEMICAL CO., LTD.)
DAISO ENGINEERING CO., LTD. (includes JMR CO., LTD.)
May 2001
June 2001
October 2000
May 2005
Japan Quality Assurance Organization
Japan Quality Assurance Organization
Japan Quality Assurance Organization
Japan Quality Assurance Organization
JQA - EM1558
JQA - EM1631
JQA - EM1051
JQA - EM4787
13 14
Quality Assurance Initiatives
Product Safety and Chemical Substance Management Initiatives
Quality assurance
Distribution by number of shareholdersFinancial instrumentsbusiness operators0.50%
Other corporations2.85%
Foreign corporations,etc.1.81%Individuals and others
94.25%
Financial Institutions0.59%
Distribution by number of shares
Financial institutions38.41%
Financial instrumentsbusiness operators0.99%
Other corporations30.39%
Foreign corporations,etc.
7.12%
Individualsand others23.09%
0
5,000
10,000
500
450
400
350
300
2014
321 654 87 9 1110 12 21 3
20162015
321 654 87 9 1110 12
Share price (¥) Trading volume (1,000 shares)
(Month)(Year)
As part of our RC activities, we take initiatives on safety and quality assurance for the chemicals and products in our business activities as well as to respond promptly to customer requirements and to prevent quality problems. Accordingly, our three main plants and an affiliated company have ISO 9001 certification, the international standard for quality management systems. As a part of ISO activities, each workplace conducts a management review to check customer satisfaction levels which are evaluated through the marketing department every six months in our efforts to enhance customer satisfaction through continuous improvements as we strive to provide products that satisfy our customers.
Plant Date of Certification Certifier Registration NumberAmagasaki Plant
Matsuyama Plant
Mizushima Plant
DAISO ENGINEERING CO., LTD.
March 1996October 1995
June 1994March 2015
Japan Quality Assurance Organization
Japan Quality Assurance Organization
Japan Quality Assurance Organization
Japan Quality Assurance Organization
JQA- 1181JQA- 0998JQA- 0539JQA- QMA15188
Amagasaki Plant Matsuyama Plant Mizushima Plant DAISO ENGINEERING CO., LTD.
ISO 9001 Certification
We operate a database in order to promptly respond to and correct quality problems such as complaints. By sharing the information in the database, we conduct company-wide horizontal deployment of corrective action to prevent the occurrence of similar quality problems.
Preventing Quality Problems
We have created safety data sheets (SDSs) for our products and published many of them on our website.
OSAKA SODA always makes efforts for substance management of our products and collection of information. We prepare Information Sheets on the Content of Certain Chemical Substances using OSAKA SODA’s own format to supplement our SDSs, as well as MSDSplus*1 from the Joint Article Management Promotion-consortium (JAMP) in order to respond to requests from customers regarding detailed information on the content of chemical substances, including RoHS*2 and SVHC*3 in addition to Japan’s Chemical Substance Control Law*4. We respond promptly to regular list revisions and provide the information to customers.*1 MSDSplus is a basic information transmission sheet for communicating information on the
chemical substances contained in products. It records the names of laws regulating the substances and the existence of substances subject to control.
*2 RoHS is an acronym for Directive on the Restriction of the use of certain Hazardous Substances in electrical and electronic equipment.
*3 SVHC is an acronym for Substances of Very High Concern with carcinogenic and mutagenic effects, reproductive and developmental toxicity and other serious impacts on human health and the environment.
*4 An abbreviated name for Act on the Evaluation of Chemical Substances and Regulation of TheirManufacture, etc.
In preparation for a major earthquake which it is forecast will occur in the near future, OSAKA SODA has formulated a Business Continuity Plan (BCP) for each manufacturing site assuming damage to production facilities at each workplace and based on forecasts for the restoration of utilities including various raw materials, water, and electricity as well as logistics. Moreover, we have also prepared emergency response guidelines at each workplace and made all employees aware of the chain of command in an emergency and the procedures for confirming safety. Furthermore, we have prepared a BCP to prepare for a large-scale influenza epidemic, taking into consideration such matters as securing production personnel by preventing inter-employee infection and a scheme for mutual assistance between workplaces.
Safety Data Sheets (SDSs)
MSDSplus
Safety Data Sheets (SDSs) JAMP MSDSplus
Business Continuity Plan
Corporate Information(As of October 1, 2016)
OSAKA SODA CO., LTD.1-12-18, Awaza, Nishi-ku, Osaka 550-0011, JapanOctober 26, 1915¥10,882 million First Section of Tokyo Stock Exchange (Securities code: 4046)Ernst & Young ShinNihon LLCJune
Company NameHeadquartersEstablishmentCapitalListed onIndependent AuditorAnnual General Shareholders’ Meeting
Stock Information(as of March 31, 2016)
Name of Shareholder
Japan Trustee Services Bank, Ltd.(Trust Account)The Bank of Tokyo-Mitsubishi UFJ, Ltd.The Bank of Fukuoka, Ltd.Sompo Japan Nipponkoa Insurance Inc.THE IYO BANK, Ltd.TEIJIN LIMITEDMizuho Bank, Ltd.Nippon Life Insurance CompanyAsahi Kasei Chemicals CorporationDAISO Partner Stock Holding Association
5,1574,3844,1133,8423,7443,3933,3483,1882,9332,838
4.894.163.90 3.643.553.223.173.022.782.69
Shareholding (1,000 shares)
Shareholding Ratio (%)
Note: Shareholding ratio is calculated by deducting treasury stock (6,419,632 shares) from total number of shares issued.
Stock Information
List of MajorShareholders(top ten)
Total number of shares authorized to be issued: 300,000,000 sharesTotal number of shares issued: 111,771,671 sharesNumber of shareholders: 5,964
Shareholder Registry Administrator
Information of shareholders distribution
Mitsubishi UFJ Trust and Banking Corporation4-5, Marunouchi 1-Chome, Chiyoda-ku, Tokyo 100-8212, Japan
Share price and trading volume trendsNote: The Company’s shareholding ratio (5.74%) of treasury stock is included in “Individuals and others.”