OHARA : Report (Integrated Report) has been published.

Company Overview

Company Overview(As of October 31, 2021)

Company name:	OHARA INC.
Address:	15-30, Oyama 1-chome,Chuo-ku,Sagamihara-shi,
	Kanagawa, Japan
Established:	October 1, 1935
Capital:	5,855 million yen
Business contents:	Manufacture and sale of glass materials for optical
	and electronics applications

Number of employees: 438 (1,462 for the entire Group)

Member of the Board

President, Chief Executive Officer	Hirokazu Saito
Director, Senior Managing Executive Officer	Takashi Nakajima
Director, Managing Executive Officer	Tetsuya Aoki
Director, Managing Executive Officer	Naoyuki Goto
Outside Director	Makoto Ichimura
Outside Director	Go Tokura
Outside Director	Akira Nokina*
Outside Director	Yukako Makino*
Audit & Supervisory Board Member	Yoshihiro Harada
Audit & Supervisory Board Member (Outside)	Haruhiko Takagi
Audit & Supervisory Board Member (Outside)	Kazuhiko Nagashima
Audit & Supervisory Board Member (Outside)	Yoshinari Iizuka*

Note*: Outside Directors, namely, Mr. Akira Nokina and Ms. Yukako Makino, and Audit & Supervisory Board Member (Outside) Mr. Yoshinari Iizuka are independent officers based on the regulations of the Tokyo Stock Exchange.

Scope of Report						This report mainly covers the activities of
							non-consolidated OHARA INC.
							*The figures in the financial reports, however, denote
							numbers that include the results of the Group companies.
Reporting Period					FY 2021
							From November 1, 2020 to October 31, 2021
							*There are, however, some references to activities for FY 2022.
Date of Issue					January 2022
Reference Guidelines				GRI,GRI Sustainability Reporting Guidelines
							Ministry of the Environment, Environmental
							Reporting Guidelines 2018

OHARA INC.

15-30, Oyama 1-chome,Chuo-ku,Sagamihara-shi, Kanagawa, 252-5286, Japan TEL: [phone] (Reception) FAX: [phone]https://www.ohara-inc.co.jp/

E-mail:[e-mail]

Stock Information(As of October 31, 2021)

Status of shares
Total number of authorized shares:	76,000,000
Total number of issued shares:	25,450,000
Number of shareholders:		10,079
Major shareholders
Name		Number of	Investment
	shares held	ratio (%)
Seiko Holdings Corporation		4,702,722	19.31
Canon Inc.		4,694,380	19.28
Kyobashi Kigyo Kabushiki Kaisha		4,688,400	19.25
Sanko Kigyo Kabushiki Kaisha		1,651,400	6.78
The Master Trust Bank of Japan, Ltd. (trust account)	877,500	3.60
TOPCON CORPORATION		673,600	2.77
Seiko Instruments Inc.		610,000	2.50
Olympus Corporation		400,000	1.64
JP MORGAN CHASE BANK 385781		141,580	0.58
Custody Bank of Japan, Ltd. (trust account)		119,200	0.49

(Note) Treasury stock (1,098,578 shares) is deducted in calculating the investment ratio.

Treasury stock includes 76,000 of the company's shares held by the Custody Bank of Japan, Ltd. (Trust E Ac- count), in accordance with the introduction of the "Board Benefit Trust (BBT)" system.

Shareholding Composition

Individuals, etc.	Securities companies		Treasury stock
18.41%		1.14%					4.32%
Other domestic corporations
Financial institutions							Foreign companies, etc
68.90%	4.44%					2.79%

Shareholder Information

Business year:	November 1 to October 31 of the following year
Record date of	October 31 (April 30 for interim dividends)
dividends of surplus:
General meeting	Late January of each year
of Shareholders:
Number of shares	100 shares
per unit:
Handling office of	3-3, Marunouchi 1-chome,Chiyoda-ku, Tokyo
shareholder registry	Stock Transfer Agency Department of the Head
administrator	Office, Mizuho Trust & Banking Co., Ltd.
Method of public	Electronic public notice
notice:	(https://www.ohara-inc.co.jp/)
	However, if an electronic public notice cannot
	be issued due to any unavoidable reasons, a
	notice will be published in the Nikkei.

Stock-related Procedures

	Shares are held	Shares are not held at securities
	at securities firms	firms or other agencies
	or other agencies	(special account)
Inquiries on changes in	Please contact
address, method of	your securities	Please contact Mizuho Trust &
receiving stock	firm or other
Banking, the account administration
dividends, etc.	agency.
institution for the Company's special
		accounts.
	Please contact
	Stock Transfer Agency Department,
Inquiries on unpaid	Mizuho Trust &
Mizuho Trust & Banking
dividends and	Banking whose
Website:
documents related to	details are
https://www.mizuho-tb.co.jp/daikou/index.html
OHARA shares	provided on the
	right.
		Special accounts do not allow the
		trading of shares other than purchases
		or additional purchases of fractional
Note		shares. In order to trade shares, you
		must open an account at a securities
		firm or other agency and complete the
		procedure of stock account transfer.

O H A R A R e p o r t

2022

The Future Made Clear

Management Philosophy

The OHARA Group continually seeks to instillnew value and build a strong organization for the purpose of advancing the well-being of its people andcontributing to the prosperity of society.

Aimingto become a 100-year company that

continuesto be chosen by customers, the

OHARAGroup will contribute to the "future

of people and society" using technologiesandquality it has cultivated as AllOHARA.

Corporate Message

Brand Slogan

The Future Made Clear

The Societyand the Future OHARADesires

A secure and healthy life. A society that cultivates creativity and

aspirations. Sustainable well-being of our planet.

OHARA's

Mission

Pursue opportunities by

developing new materials for

every era.

Form alliances with diverse partners to elevate lifestyles and cultures and promote innovation. Advancement of new frontiers and improvement of the global environment.

CONTENTS

Management Philosophy & Corporate Message	2
History of Value Creation	3
Corporate Profile	4
Top Message	5
OHARA's Value Creation	7
Long-Term Vision 2035	9
Medium-Term Management Plan	11
Innovative Activities - Global Market Development Project	12
Strategies by Business and Function
Optical Business	13
Electronics Business	15
Research & Development and Technology	17

OHARA Group's Sustainability	18
Social Initiatives through Corporate Activities	19
Environment	19
Trusting Relationships with Stakeholders	20
Pursuit of Quality	20
Fair Transactions	20
Local Communities	20
Communication with Shareholders and Investors	21
Employees	21
Compliance Promotion System	22
Corporate Governance	23
Financial & Non-Financial Highlights	25
Company Overview	Back cover

OHARA's Values

Outstanding materials that exceed expectations and facilitate our customer's success.

Culture

Proceed with integrity Craftsmanship without compromise

Initiate a continuous cycle of challenge Work together as 'All OHARA' Respect, transformation & growth

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History of Value Creation

Corporate Profile

OHARA INC.

1935•• • • • •1935

Jinpachi Ohara, Founder

Founded OHARA Optical Glass Mfg. Co. Ltd. (currently OHARA INC.) in Kamata, Tokyo, crating Japan's first manufacturer specializing in optical glass. Jinpachi Ohara's technology spirit continues to be passed on.

Established OHARA Optical Glass Mfg. Co. Ltd. in Kamata, Tokyo by Jinpachi Ohara.

1980

• • • • •1936
• • • • •1944
• • • • •1969

•• • • • •1982

Started optical glass melting.

Reorganized as a Joint-Stock Company. Built Sagamihara factory.

OHARA Glass reached the moon (Apollo 11).

Installed OHARA Glass in Space-Shuttle "Columbia."

	Leading company in	152types of	Over 10types of
86-year history	optical glass and

1990•• • • • •1985

•• • • • •1994

•• • • • •1997

•• • • • •1998

•• • • • •1999

2000•• • • • •2000

•• • • • •2005

•• • • • •2007

2010

•• • • • •2012

•• • • • •2014

•• • • • •2015

•• • • • •2016

•• • • • •2017

Introduced New Company Name "OHARA INC."

Commenced hard disk business (phased out in 2014).

Switched all 112 recommended glass types (at the time) to eco-glasses. OHARA acquired ISO9001 certification.

Installed OHARA Glass in Suprime-Cam in Subaru telescope.

OHARA acquired ISO14001 certification.

Listed on First Section of Tokyo Stock Exchange.

Installed OHARA Glass in the Lunar Orbiter "KAGUYA (SELENE)." Installed OHARA Glass in Hyper Suprime-Cam in Subaru telescope.

"Ultra Low Expansion Glass-ceramics(CLEARCERAM™-Z)" was adopted in ultra-large telescope TMT.

OHARA Glass was adopted in the Hayabusa2 deployable camera (DCAM).

Started mass production and supply of aspherical glass mold lenses.

"Shock Resistant and High Hardness Clear Glass-ceramics (NANOCERAM™)" was adopted in the high-grade filter for interchangeable lenses.

NANOCERAM™ was adopted in screen protector glass for smartphones.

Provided by:

National Astronomical Observatory In cooperation with:

Mitsubishi Electric Corporation

JAXA

	optical glass	special glass and
special glass	(as of May 2021)	glass-ceramics

Providing Materials in All Fields

Consumer imaging	Mobile	Biomedical
	Mobility	Security	Ofce
Education	Industrial equipment	Aerospace	Research institutes

Overseas	FY 2021	Japan
employees ratio
60.5%	employee
composition
	1,462

OHARA GmbH (Germany)

OPC Corporation

NHG-OHARA OPTICS (XIANGYANG) Co., LTD. (China)

OHARA INC.

OHARA OPTICAL (HONG KONG) LTD. (Hong Kong)

•• • • • •2018

•• • • • •2019

2020

•• • • • •2021

"Ultra Low Expansion Glass-ceramics(CLEARCERAM™-Z)" was adopted in the Super Low Altitude Test Satellite "Tsubame" (SLATS).

Launched the world's first optical glass material dedicated to automotive cameras.

Commenced operation of new factory for aspherical glass mold lenses.

"Ultra Low Expansion Glass-ceramics(CLEARCERAM™-Z)" was adopted in Japan's largest telescope Seimei.

OHARA Glass was adopted in NASA's Mars rover "Perseverance."

				Ohara Quartz Co., Ltd.
OHARA OPTICAL (ZHONGSHAN) LTD. (China)		Ohara Corporation (East Ofce) (USA)
				TAIWAN OHARA OPTICAL CO., LTD. (Taiwan)
				Ohara Corporation (West Ofce) (USA)
OHARA OPTICAL (M) SDN.BHD. (Malaysia)				Taiwan Ohara Optical Material Co., Ltd. (Taiwan)

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Top Message

Hirokazu Saito

President, Chief Executive Officer

we see ourselves in the future. This message is to set "The Future Made Clear" as our brand slogan, define our own mission and values, and demonstrate the culture to fulfill this with the aim of becoming a corporation with a 100-year history. With regard to a new Long-Term Vision, we decided to first launch a three-yearmedium-term management plan (FY 2021 through FY 2023) to overcome the unprecedented crisis caused by the COVID-19 pandemic, and formulate the vision once we are able to foresee an improvement in operating results.

In the first year of the medium-term management plan, as mentioned above, we achieved a significant improvement in operating results as a result of the market recovery. In response to this, we formulated and launched the Long-Term Vision 2035 as a future guideline to realize our Corporate Message.

The vision aims to achieve "a secure and healthy life," "a society that cultivates creativity and aspirations," and the "sustainable well-being of our planet" as we approach 2035, when the OHARA Group will celebrate its 100th anniversary, while assuming that the era will be one in which the future outlook is uncertain and unpredictable. These initiatives seek value co-creation with customers and business partners in the supply chain while leveraging our strengths in materials and technologies, and will contribute to the resolution of social issues.

The management policy to achieve the vision centers on the development of existing businesses in the optics technology field, which stimulates new demand through a fusion of light and sensing, and the construction of multifaceted business through the creation of new businesses. We will support this policy by creating both organizations in which diverse human resources can play a part and a corporate culture that takes on challenges. In particular, we believe that the participation of women and overseas human resources is an indispensable element

In the next two years of business development, it is essential that we launch mass production projects for NANOCERAM™, and we intend to use these as the starting point for "the creation of highly profitable businesses." In our efforts to resolve social issues, we will embark on the electrification of gas furnaces while proceeding with the test introduction of high-temperature,high-speed melting furnaces in order to reduce GHG emissions.

As newly established performance targets, we aim to achieve net sales of 26.5 billion yen or higher, operating income of 3.0 billion yen or higher, and ROE of 6.5% or higher in the consolidated business results for FY 2023.

To All Stakeholders

Strengthen profitability and establish a solid corporate structure

In the previous fiscal year we posted a large loss, which was a cause for concern among our stakeholders. However, as we were able to improve our operating results in FY 2021, we decided to pay a year-end dividend of 15 yen per share (up 5 yen from the previous year). We will continue to strive to maintain a stable dividend over the long term.

In preparation for the transition to the new market segment that the Tokyo Stock Exchange is scheduling for April 2022, OHARA has selected, and is undertaking procedures, for the "Standard Market." We aim to transition to a higher ranked market in the future after strengthening our profitability by transforming our business structure in this market and establishing a solid corporate structure. We are also working on improving our internal structure, including strengthening our

Looking Back on FY 2021 Operating Results

Significant improvement in operating results due to the recovery of demand for glass materials

In FY 2021, the business environment improved significantly after deteriorating due to the impact from the COVID-19 pandemic, and demand for glass materials in both the digital camera market and the semiconductor market increased dramatically from March. The OHARA Group responded to the rising demand by rapidly refurbishing its melting facilities, the operation of which had been suspended due to the reduced operating rates in the previous fiscal year, and by increasing its workforce.

In the digital camera market, although there have been no changes to the basic structure, which is affected by the increasing use of smartphones, there has been a significant rebound after the contraction caused by the COVID-19 pandemic, and we believe that this is resulting in an upswing over and above actual demand. In the semiconductor market, investment in manufacturing equipment remains strong against the backdrop of the tight global supply, and together with the increase in organic EL panels, this is leading to growing demand for glass materials for exposure equipment. The mobile, mobility and battery (MMB) sector, which is positioned as a priority market, continues to demonstrate high growth potential, despite concerns over factors such as reduced automobile production caused by the present shortage of semiconductors.

As a result, consolidated net sales rose by 46.4% from the previous fiscal year in the Optical business and by 14.8% in the Electronics business, and profitability in both businesses improved significantly as a result of the aforementioned increase in operating rates due to growing demand. With regard to consolidated results, consolidated net sales returned to the pre-COVID-19 level of 23,520 million yen. On the

profit front, profits were once again posted with operating income amounting to 1,368 million yen, ordinary profit amounting to 1,733 million yen, and profit attributable to owners of parent amounting to 1,460 million yen.

However, this improvement in operating results is largely due to the recovery of existing businesses, and we are aware of the delay in the progress of "the creation of highly profitable businesses" that the OHARA Group is targeting with the aim of achieving sustainable growth. Mass production projects for the shock resistant and high hardness glass-ceramics NANOCERAM™, which has been our priority theme in recent years, could not be launched in FY 2021, hindered in part by the impact of activity restrictions due to the COVID-19 pandemic on our efforts in value co-creation involving processing manufacturers and finished product manufacturers. Market development, including the strengthening of marketing functions and the development of global markets, also did not lead to sufficient results amid continued restrictions on overseas travel. Going forward, we will promote initiatives based on the medium-term management plan described below in order to accelerate these business structure reforms.

Formulating a Long-Term Vision for 2035

Guidelines to realize the Corporate Message

The OHARA Group has been working to grow the Electronics business and develop the environment and energy field as growth drivers following the Optical business through its Long-Term Vision 2020 covering the 12 year-period from FY 2009 to FY 2020. In particular, from the middle of the period onward, we focused on transforming our business structure and establishing new drivers of growth, but the challenges facing us continued amid a series of market changes that exceeded our expectations when formulating the vision.

Based on those results, we formulated a Corporate Message in FY 2020 that clarifies the direction we should take going forward and how

for reforming the business structure and creating new value.

In addition, as an initiative for sustainability, we will promote the reduction of greenhouse gas (GHG) emissions in our business activities to address climate change risks. Going forward, we aim to reduce GHG emissions in 2035 by 50% (compared with FY 2018) by developing and introducing high-temperature,high-speed melting furnaces with high energy efficiency and new melting processes, and by utilizing renewable energy.

Review of the Medium-Term Management Plan and Future Development

Newly reflecting back-casting from the long-term vision

The current medium-term management plan was reviewed in line with the formulation of the Long-Term Vision 2035, and the performance targets for the final year of the plan (FY 2023) were also reestablished. The contractive trend of the digital camera market, which was assumed initially, has changed; there has been a rebound following the decline caused by the COVID-19 pandemic and robust demand for glass materials has been expected in the past one to two years. Furthermore, we have newly incorporated elements for resolving social issues that were back-cast from our long-term vision. These are the two main points in the review of the plan.

In order to continue to maintain one of the themes of the plan: "Managing with agility to keep up to date with market changes," and fulfill the other theme: "Accelerating organizational metabolism" while responding to changes in the environment, we will strengthen our capacity shift to new businesses and our marketing functions, and promote value co-creation with customers and partner companies.

corporate governance, to meet the standards required of the higher- ranked market.

We would like to ask our stakeholders for their understanding and continuing support for the OHARA Group as we take on challenges and make a greater social contribution in our continued journey toward becoming a corporation with a 100-year history.

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OHARA's Value Creation

The OHARA Group's "value creation model" is an initiative to realize its brand slogan, "The Future Made Clear."

Create outstanding materials that exceed expectations by pursuing the possibilities of glass with core organizational capabilities and processes, and open up the future through value co-creation with customers and processing manufacturers

Contribute to elevating lifestyles and cultures, advancing new frontiers, and improving the global environment by addressing social issues

By putting this value creation model into practice, we will realize the future and society that OHARA desires.

OHARA's Core Organizational

Create Value for Customers and Society

Capabilities and Core Processes

Technology integration and combination to transform

materials into forms desired by customers

control

system

Customers

Material

Precision

Measurement,

tuning

evaluation

Marketing

Sharing of visions

and analysis

and strategies

Production

Material

technology

R&D

Value co-creation

OHARA

Processing

manufacturers

Flexible production system

Appropriate and quick feedback

Acceleration of hypothesis and verification cycle

OHARA's Human Capital and Culture

Social Issues

Sincere action, craftsmanship without compromise,

challenge mindset, intra-group collaboration, respect for

individuality and diversity

Commitment to Society through the Value Chain

: Enhance positive impact

: Minimize negative impact

Raw materials

Suppliers

Manufacturing

Inbound logistics

Resource conservation

Non-use of conflict

Resource conservation

Reduction of environmentally

Production technology innovation

hazardous substances

& recycling

minerals

& recycling

in glass products

Recycling of glass

Energy efficiency

Recycling of glass

through high-tempera-

waste and refractory

ture high-speed melting

waste

Initiatives to strengthen ethics

Talent development

and compliance

Work style reform

Environmental management

Seminar on export control

Childcare support

Soil and groundwater pollution

Internal education on laws and regulations		countermeasures
Hourly paid leave system	Proper control over chemical
Ethics and compliance seminar
	substances

successcustomers'ourfacilitateandexpectationsExceed	Focused markets and technologies	Corporate Message	DesiresOHARAFuturetheandSocietyThe
lifestylesofElevationofAdvancementtheofImprovement culturesandfrontiersnewenvironmentglobal	Quality of life
		Advanced information terminals
		In-vehicle technology	A secure and healthy life
		Medical technology
		Industry and infrastructure
		Semiconductor manufacturing technology	A society that cultivates
		Advanced infrastructure technology	creativity and aspirations
		Space development
		Environment and energy
		GHG reduction	Sustainable well-being
		Low-energy melting technology	of our planet

Next-generation batteries

	Use of products
	Disposal of products
	Products
Provision of materials for advanced technologies that realize advanced	• Optical glass
information terminals	• NANOCERAMTM
Provision of materials that realize advanced driver assistance systems
Provision of materials for advanced technologies that realize advanced	• Fiber glasses for light guide
medical services
Provision of materials for high-precision sensing technology	• Synthetic quartz glass
• i-line high homogeneity glass
Provision of materials for advanced semiconductor manufacturing technology
• CLEARCERAMTM-Z
Contribution to technological development for the development and utilization

Human rights initiatives		Activities for promotion	Safety and health
	of women's participation	activities
Internal reporting system (Helpline)

Commitment to local communities

Sponsoring activities of residents' associations

Participating in local cleanup activities (Sagami River

Cleanup Operation)

Accepting factory tours and work experience students

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"No Car Day" campaign

Reduction of greenhouse gas (GHG) emissions

Activities Underpinning the Business Foundation

of outer space	• Non-browning glass
Technological contribution in the astronomical research field	• Optical glass
Provision of materials that improve the performance of lithium-ion batteries	• LICGCTM
and realize solid-state batteries

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