In 2008, the AGC Group launched "JIKKO-2010", our new three-year management plan, marking the start of a new stage of our growth strategy. The approximately 50,000 employees in roughly 30 countries and regions worldwide who comprise the AGC Group are united as a single community under the AGC Group brand, and both management and regular employees are making unceasing efforts in unison to achieve the following objectives.

In 2002, the AGC Group formulated the "Look Beyond" Group Vision that clarifies the new directions to realize our goal of becoming a truly global enterprise. An integral part of our initiatives for promoting a global growth strategy, "Look Beyond" clearly articulates the AGC Group's mission and management objectives in addition to identifying the Group's three major targeted business areas of glazing, display, and electronics and energy (E&E). In addition, we have been pursuing further Group-wide efforts to bolster our competitiveness, as we utilize our strengths encompassing world-leading core technologies in glass and fluorine chemistry, a global management structure, and well-balanced business portfolio that utilizes these capabilities.

To ensure the resolute execution of reforms, in 2004 we formulated a new management policy that clarifies our new growth strategies, and implemented this policy as a course of action under the "JIKKO-2007" medium-term management plan.Thanks to these measures, we achieved growth in the flat panel display (FPD) business, expanded our flat glass business in Europe, and recorded steady business growth in the E&E fields, which enabled us to successfully surpass our financial targets of an operating income margin exceeding 10% and operating income of \180.0 billion for the year ended December 2007, the final fiscal year of "JIKKO-2007".

Guided by the new "JIKKO-2010" medium-term management plan, which will run from fiscal 2008 to fiscal 2010, we will continue to execute growth strategies, with a view toward addressing the remaining tasks under the previous medium-term management plan. In implementing these growth strategies, we will also focus on "pursuit of quality" in all aspects of our operations while raising competitiveness.

Regarding specific growth strategies, we will aggressively invest in growth fields, including our Display operations, and undertake R&D focused primarily on the E&E fields, as we work to create new businesses that will drive the future growth of the AGC Group. Furthermore, we will strive to raise growth potential and profitability in our Glass operations and Chemicals operations and will build an appropriate business structure that will enable sustainable growth and development in the future.

Our initiatives aimed at the "pursuit of quality" will focus on strengthening the business structure via such measures as carrying out management with increased emphasis on capital efficiency, raising the quality of management, improving product quality, cultivating human resources, and executing technology strategies and R&D globally.

In 2007, AGC celebrated the 100th anniversary of its founding. In 2008, we will take the first steps toward our next 100 years in conjunction with the start of "JIKKO-2010". As we focus on the four Shared Values articulated in "Look Beyond" , we will actively promote such initiatives as raising levels of customer satisfaction (CS), ensuring employee satisfaction (ES), and working to fullfill the Group's corporate responsibilities that include undertaking environmental protection activities and transparent and fair business activities. To sustain our resolute drive toward further growth, we will carry out our business with unprecedented speed, as the AGC Group works in unison to become a global company realizing high growth and high profits that is trusted by society.

Masahiro Kadomatsu, AGC Group CEO

Kazuhiko Ishimura, AGC Group COO