Coinciding the change in management team, the AGC Group has introduced a new management policy JIKKO-Execution for Excellence. The Group strives to excel as a highly profitable and fast- growing enterprise by steadily executing its growth strategies associated with FPD (Flat Panel Display) business as well as business development in emerging markets . At the same time, the Group seeks to boost customer satisfaction, bolster employee job satisfaction and pride in accomplishment, and fulfill corporate social responsibility (CSR), as it strives to continuously increase shareholder value.
Beginning in 1998, the Group implemented a series of structural reforms under President Ishizu's leadership through the Shrink to Grow initiatives. Specifically, as part of the Shrink policy, the Group streamlined personnel and closed various facilities, while restructuring the Chemicals as well as other less competitive businesses. Measures on the Grow side of the initiative included aggressive investment in the Display business and the establishment of a globally integrated management system. The figures bear out the Group's success. The Group's consolidated operating margin rose from 3.4% in fiscal 1999 to 6.7% in fiscal 2003 ended December 31. Also, during the Shrink to Grow initiatives, the Group has defined what it must do to achieve further growth.
The new management policy embodies the basic concepts of Shrink to Grow . By steadily implementing the growth strategies in the next stage, the Group believes that it is possible to be a global leading company. The Group has set a goal of achieving an operating margin of 10% or more.