Table of Contents

Report Highlights of fiscal 2009
Editorial Policy

Report Highlights of fiscal 2009 ・・・・・・・・・ 3

DENKA set up its CSR Promotion Department in April 2007
as part of DENKA100, a Companywide initiative to meet
new challenges while heading toward its centennial in 2015.
The department coordinates Responsible Care (see note
below) and other corporate social responsibility (CSR)
activities throughout the organization. The Company started
publishing an annual Environmental Report in 2000 replacing it with the CSR Report in October 2007.
This report presents our businesses and activities
to demonstrate our efforts to build trust among all our
stakeholders . It highlights the activities of the Environmental Burdens Reduction Promoting Department, which weestablished during the year under review, and a focus on
disaster-prevention, safety and health initiatives.
The Japan Responsible Care Council conducted athird-party audit of the report. In preparing this publication,
we referred to Reports on Environmental Guidelines 2007 by
Japanʼs Ministry of the Environment and Version 3 of the
Sustainability Reporting Guidelines by the Global Reporting
Initiative.

Message from the President ・・・・・・・・・・ 4
DENKA100

・・・・・・・・・・・・・・・・・ 5

CSR at DENKA
Corporate Philosophy and Guidelines ・・・・・ 6
1.CSR at DENKA ・・・・・・・・・・・・・・ 6
2.CSR Milestones ・・・・・・・・・・・・・・ 7
3.Corporate Governance and Compliance・・・・ 8
DENKA CITY ・・・・・・・・・・・・・・・ 10

Serving Society
1. Environmentally Friendly Products ・・・・・ 12
2. Contributing to a Sustainable Society ・・・・ 15
3. Maintaining Product Safety ・・・・・・・・ 16
4. Management Systems ・・・・・・・・・・ 17

Social Contributions ・・・・・・・・・・・ 18
Cultivating Our Employees ・・・・・・・ 20
1. Employee Education ・・・・・・・・・・・ 20
2. Good Company Program Initiatives ・・・・・ 21
3. Respecting Diversity ・・・・・・・・・・・ 21
4. Labor and Management Relations ・・・・・ 21
5. Occupational Safety and Health, Security
and Disaster Prevention ・・・・・・・・・・ 22■Special Feature: Maintaining Safety at
Omi Mine and Chiba Plant ・・・・・・・・・ 24

Tackling Environmental Issues ・・・・・ 26
1. Addressing Global Warming ・・・・・・・ 28
2. Electric Power Initiatives ・・・・・・・・・ 30
3. Rationalizing Logistics ・・・・・・・・・・ 31
4. Outputs ・・・・・・・・・・・・・・・・ 32
5. Environmental Accounting ・・・・・・・・・ 34
6. Environmental Performance ・・・・・・・・ 35

Serving Shareholders and Investors
1. Investor Relations ・・・・・・・・・・・・ 36
2. Consolidated Financial Highlights ・・・・・ 36

Note: The definition of Responsible Care is: Activities undertaken by the chemical industry by which manufacturers andhandlers of chemical substances, under the principle ofself-determination and individual responsibility, conduct
self-management of environmental and safety issues
surrounding aspects of chemical substances, from development through to disposal.

We strove to cut emissions of carbon dioxide and other environmentally hazardous
substances while focusing on worker health and safety and disaster prevention.
Cutting emissions of carbon dioxide and otherenvironmentally hazardous substances

We established the Environmental Burdens
Reduction Promoting Department in October
2008. The office forms part of intensified Groupefforts to cut emissions of carbon dioxide andother environmentally hazardous substances
as a socially responsible chemicals producer.

Offering Environmentally
Friendly Products

Focusing on Employee Safety
and Health and Enhancing
Disaster Preparedness

This report showcases three products in theareas of electronic materials, food packaging
and construction materials that save help
energy and lower carbon dioxide emissions
and environmental impact.

We spotlight efforts that all our business sites
are undertaking. A special feature details
safety initiatives at the Omi Mine and disastersafeguards at the Chiba Plantʼs petrochemicals complex.

Scope of Report
CoverageThis report generally covers fiscal 2008—April 1, 2008,
through March 31, 2009—although it also includes numerical targets and performance statistics before, and subsequent
events after, that period.

Scope
Unless stated otherwise, the data in this report is based on
information on the business sites of DENKA and key
affiliates. These sites are the Omi, Omuta, Chiba, Shibukawa, Ofuna and Isesaki plants, and the Central ResearchInstitute. We also include data for the plants at which
Electronic Materials Institute and Polymer Technology
Institute are located.
The key affiliates are Denal Silane Co., Ltd.,
Denak Co., Ltd., JUZEN Chemical Corporation at the Omi
Plant, and Chiba Styrene Monomer Limited Company,
TOYO STYRENE Co., Ltd., and Taiyo Vinyl Corporation at
the Chiba Plant. The financial sections on pages 36 to 39
and 52 to 54 of this report present consolidated data.

Presenting Site Reports for Key Affiliates

3. Segment Performance of fiscal 2008 ・・・・ 37
4. Research and Development Activities ・・・ 39
Site Reports

・・・・・・・・・・・・・・・・ 40

Major Affiliates ・・・・・・・・・・・・・・・・ 50
Consolidated Financial Statements ・・・・・・・ 52
Corporate Data ・・・・・・・・・・・・・・・ 54
Third-Party Audit ・・・・・・・・・・・・・・ 55
Editorial Afterword ・・・・・・・・・・・・・・ 55

02

For More Information
CSR Promotion Department
DENKI KAGAKU KOGYO KABUSHIKI KAISHATEL. +81-3-5290-5511
FAX. +81-3-5290-5149
Nihonbashi-Mitsui Tower,
1-1, Nihonbashi-Muromachi 2-chome
Chuo-ku, Tokyo 103-8338, JAPANhttp://www.denka.co.jp

These reports cover major sites for six domestic and four overseas plants, three research
centers and five key affiliates.

03

Table of Contents／Editorial Policy／Report Highlights

Editorial Policy ・・・・・・・・・・・・・・・・ 2

Message from the President

DENKA 100

Pursuing Lasting Trustas an Outstanding Manufacturer

Pursuing New Challenges through DENKA100 for Our Centennial

1.Committed to Conserving Energy

This management plan aims to double operating income
between fiscal 2006 and 2015 to ¥60 billion on a consolidated basis and ¥50 billion in non-consolidated terms.
DENKA100 comprises the following six key policies.

We launched DENKA100 in April 2007 prepare
for our centennial in 2015.
What is DENKA100?

2.Our Mission
Our mission is to manufacture products that contribute to a better society.
Founder Tsuneichi Fujiyama, who pioneered the use of carbide in Japan,
devoted himself to producing chemical fertilizers domestically to foster thenation s agricultural sector. His vision of serving social needs lives on in
our diverse business portfolio.
Priorities today are innovate products that help conserve energy
and reduce environmental footprints, a good example being our solar
power offerings. We are employing life cycle assessments to help customers reduce waste and environmental impact when using our products.

3.CSR at DENKA

DS09 is the first stage of DENKA100, covering fiscal
2007 through 2009. During this period, we aim toincrease consolidated operating income from ¥30 billion
in fiscal 2006, to ¥43 billion. On a non-consolidated basis,the goal is to boost operating income to ¥35 billion, from¥25 billion in fiscal 2006. In fiscal 2009, we are additionally deploying KIT09, an acronym for a Japanese term,
which seeks to address recessionary challenges.

6 Pursue Corporate Social Responsibility
We are endeavoring to fulfill our CSR requirements, focusing particularly on the environment, secure employment,compliance and social initiatives.

DENKA100 Targets

Employee awareness &operational reforms

GCP Version-up GCP2.0

Coltivate humanresources and motivation

Technology Improvement andInnovation Cost Reduction

Promotion of research &development

Corporate social
responsibility

Sections

Sections +Human Resource
Development Center

Sections +Productivity
Enhancement Center/
Production Process
Department

Sections +R&D
Department

Sections +CSR Promoting
Department

KIT09
DS09

2007

Business
Deployment

Future plans

2009

Double operating income between fiscal 2006 and 2015 to ¥60 billion on a consolidated basis and¥50 billion in non-consolidated terms

A new set of challenges leading up to our centennial in 2015
Create new value from resources by fully employing technological capabilities

2015

3-yearSections

Development of
human resource

Enhancement of
productivity

R&D

CSR

DENKA100 Department (Administration)
DENKA100
Guideline

04

5 Foster R&D
The Research and Development Department is leading
efforts to strengthen existing product lines and more swiftly
innovate environmentally friendly offerings.

We launched the Good Company Program (GCP) in
October 2004. We updated this initiative to GCP2.0 in April
2007 to enhance employee awareness and pursue operational reforms, and thus revitalize the Company throughnew thinking.

September 2009

Seiki Kawabata
President

4 Enhance Productivity
We will strengthen the technological and other capabilities
of production sites by more effectively using resources andraw materials, improving equipment and facility capacities
and creating value-added products.

2 Deploy GCP2.0

DENKA 100 Promoting Deparment

It is important for us to remain a good corporate citizen for all our
stakeholders ̶ including society, shareholders, customers, employees andthe environment ̶ to achieve sustainable growth. DENKA100, a Companywide initiative to prepare for our centennial in 2015, comprises polices
relating to corporate social responsibility and five other areas which arecentral to building lasting trust as an outstanding manufacturer.
The DENKA Group Guidelines underscore our CSR commitment
as a chemical products manufacturer in 10 key respects, including
safeguarding the environment, maintaining employee safety and health,ensuring security and preventing disasters, compliance, employment andsocial initiatives. We are undertaking voluntary environmental, safety andhealth efforts through our Responsible Care activities. We produced amedium-term environmental plan that incorporates numerical goals forsaving energy and reducing emissions of chemical substances in the Pollutant Release and Transfer Register(PRTR), while also cutting final waste
disposal.
We would greatly appreciate your feedback on this report on ourbasic CSR activity policies and achievements, and look forward to yourongoing support as we step up our endeavors.

1 Undertake DENKA Business Development
DS09 and KIT09

Become a trustworthy organization
Identify new business opportunities
Operate honorably and foster individual talent05

Message from the President ／DENKA 100

DENKA was established in 1915 to manufacture fertilizers and otherchemical products.
The original English rendering of our corporate name wasElectrochemical Industries. As that name suggests, we started out by using
electrical furnaces to transform limestone and coke into carbide andindustrial chemical products incorporating that material.
The electric power infrastructure was poor at the time, so webuilt a hydropower plant to serve our needs. Conserving energy has long
been a key priority for us, as the efficient consumption of precious energy
has contributed significantly to the competitiveness of our offerings.
Now, our operations also encompass such fields as petrochemicals, and hydropower remains a valuable ̶ and clean ̶ source of energy forour business. At the same time, we have embraced natural gas-based andbiomass power generation to save energy and lower emissions of carbon
dioxide and other environmentally harmful substances.

3 Cultivate Human Resources
We will better motivate employees by enabling them tothink, learn and act independently, assisting their activities
through education from the Human Resource Development Center.

CSR at DENKA
CSR Promoting Department Activities

CSR is central to our management.

The CSR Promoting Department oversees CSR issues
related to many areas of the Company. The department
collaborates with the DENKA100 Promoting Department
and the Investor Relations and Corporate Communications
Department to promote CSR internally and externally.

Corporate Philosophy and Guidelines
The DENKA Group philosophy is to become a corporation that creates value fromresources by fully utilizing advanced technological capabilities. The Group s 10
CSR guidelines are as follows.
Director
Senior Executive Officer
In charge of CSR Promoting Department

Mamoru Hoshi

1. We will promote sustainable social and business development out of a conviction that corporate social responsibility is the essence of business.
2. We will contribute to sound social progress by developing and supplying products and services that are safe and environmentally friendly.
3. We will operate fairly.
4. We will maintain a good level of communication with society and disclose appropriate information.

President
Responsible Care(RC) Committee
Safety Measures Headquarters
CSR Promoting Department

Product Liability(PL) Committee
Ethics Committee
Security Export Control Committee
Risk Management Committee
Internal Auditing Department
Investor Relations andCorporate Communications Department

5. We will comply with laws and regulations and operate fairly according to social norms.
6. We will maintain safe, clean and comfortable workplaces and respect all basic human rights.
7. We will use, reuse and recycle resources to help protect the environment.
8. We will maintain security and disaster prevention measures, participate in environmental protection activities and communicate with society.

2
1985

1

1990
1995

CSR at DENKA

1997

Our CSR Approach

CSR Concepts

CSR encompasses tackling Companywide environmental,
safety, employment, compliance and social activities
issues. Companies must be proactive and accountable indealing with these issues.
Contribute to
Incommunities
April 2007,
we launched DENKA100 companyby
wide to meetchallenges heading toward our centenensuring newcompliancenial in 2015.
Relationships with stakeholders are vital for us toprogress sustainably. It is essential for us to operate in
keeping with CSR requirements, which are pivotal to
DENKA100.
We are endeavoring to fulfill our CSR obligations
as a good corporate citizen for the following stakeholders.
Stakeholders

CSR issues

Customers

Develop and supply high-quality products that areeconomical and useful.

Society

Act as a good corporate citizen to ensure complianceand communicate better with communities.

Employees

Offer comfortable and rewarding workplaces.

The environment

Prevent global warming (reduce carbon dioxide emissions),
control chemical substances emissions, reduce waste andinnovate technologies that conserve energy.

Shareholders
and investors

06

Stably improve business results and build trust byexchanging information.

1998
1999
2000

Society

2001
2002

Contribute tocommunities by
ensuring compliance

2003

Pursuring lasting trust as an outstanding manufacturer

The environment
Care for the environment
Maintain safety

EconomyContribute to stakeholders
Increase customer satisfaction

2004
2005
2006

Satisfy employees

2007

2008

CSR Milestones
The Canadian Chemical Producers’ Association proclaimed the Responsible Care(RC) ethos of independently controlling and managing chemical substancesInternational Council of Chemical Association(ICCA) establishedJapan Responsible Care Council(JRCC) established; became a member
Created the Responsible Care policy and organized our Responsible Care(RC) Committee
Started Responsible Care audits
Created a basic manual to promote product liability measures and organized the Product Liability(PL) Committee
Organized the Energy Saving Subcommittee
The Chiba Plant acquired ISO 14001 certification (all plants were certified by 2004)
Published our first Environmental Report
Discovered acetylene and dioxin emissions at our alumina fiber plant and filed a report with the relevant
government agency (becoming a designated facility under the Dioxin Special Measures Act in 2002)
Inaugurated natural gas cogeneration facilities at the Chiba Plant
The Omi Mine won the Gold Kanban Award for excellence in mine preservation and performance
Started presenting information on affiliates in our Environmental Report
Launched biomass boiler power generation operations at the Omi Plant
Created the Negative List (a database on environmental chemical substances)
Integrated with TOYO KAGAKU Co., Ltd.
Started our first medium-term environmental plan
Inaugurated our Good Company Program(GCP)
Launched our second medium-term environmental plan
Conducted Japan Responsible Care Conference third-party audits at the Omuta Plant
Omi Plant began accepting sewage sludge for its recycling system
Commenced the Companywide DENKA100 initiative
Established the CSR Promoting OfficePublished our first CSR ReportJapan Responsible Care Council (JRCC) began providing third-party audits of our CSR Report (covering
headquarters and the Chiba Plant)
Japan Responsible Care Council (JRCC) provided a third-party audit of our CSR Report (headquarters and the Omi Plant)
Set up the Earth Committee (see page 29)

07

CSR Milestones

9. We will contribute to society as a good corporate citizen.
10. We will contribute to social development as a good member of the global community.

CSR at DENKA

DENKA Group Guidelines

1. Define basic CSR policies and comprehensive solutions forthe DENKA Group
2. Educate and enlighten on Group CSR activities (collaboratingwith the DENKA100 Promoting Department)
3. Publicize CSR activities (Investor Relations and Corporate
Communications Department)
4. Internally and externally communicate CSR achievements
5. Secretariat for other CSR activities■CSR Organization as of April 2009

3

Corporate Governance and Compliance
We are building a highly transparent corporate structure
to earn the trust of all stakeholders.

Corporate Governancereduce possible mistakes and risks in keeping with the

It is important to understand the diverse and numerous

implementation standards of this system, swiftly address-

hazards of corporate activities through proper risk control.

Internal control systems are fundamental to meeting societyʼsers, customers, local communities, employees, and otherexpectations and gaining its respect. We will continue tostakeholders. Corporate governance underpins social

improve our systems in line with the policies of the Board ofrespect and support. We have thus taken steps to improve

Directors. The following outlines details of the system.

both the Board of Directors and our auditing system, while

1 Board of Directors and Executive Officers

In general, each business unit is responsible for

We issued our first internal controls report follow-

identifying and managing its specific risks. We maintaining the systemʼs implementation in fiscal 2008. This docu-

special sections and permanent committees to handle

ment declared the effectiveness of our internal controls

environmental, safety, product liability and export control

based on an evaluation for that year in line with assess-issues that affect the entire Company.

ment standards for generally accepted financial reports.
An independent accounting firm(ERNST & YOUNG

to comprehensively tackle incidents that greatly affect

SHINNIHON LLC) audited our report and determined that

corporate activities. We also set up the Crisis Measures

all significant aspects of our disclosure were proper .

Headquarters and the permanent Risk Management Com-

Two of our ten directors are external. In April 2008, wereformed this body to separate oversight and implementa-

mittee.

Compliance
Compliance is essential for sustainable growth. We

its supervisory functions. The Board of Directors appoints

accordingly adhere to internal rules and legislation andexecutive officers to run operations under leadership of therefrain from acts that violate moral and ethical norms. In

president.

2002, we codified conduct standards in the DENKA Grouptions and management to ensure that our business

2 Internal Auditing System

Ethics Policy.

properly serves stakeholders.

The Internal Auditing Department conducts most of our

We adopted a Corporate Auditor System as the basis of
our Corporate Governance System. The Board of Auditors
includes two independent members, assessing our opera-

The Board of Directors similarly has two external

in-house checks, with assistance from the Legal, Environ-

members. We ensure management transparency by sepa-

ment and Safety, and Quality Management departments. It

rating that boardʼs oversight from executive implementa-also works closely with our Product Liability, Responsible

tion.

Care and other committees. Each department and commitThe chart below shows our corporate governancetee collaborates to educate on legislation and audit operations. The results go to the Board of Directors.

structure, including the internal Audit System.

We inaugurated the Compliance Hotline System
to supplement internal audits by swiftly identifying andaddressing any violations (see page 9).
3 Internal Controls Reporting Systempresident chairs, to oversee compliance and enforce thepolicy. We adopted compliance policies for the Legal,
Environmental and Safety, Intellectual Property and other■Risk Management Overview

departments.
We educate employees on compliance throughprograms run by the Human Resources Development

Emergencies

Compliance Hotline Systemcompliance systems by enabling us to fix organizational
Hotline in keeping with the DENKA Group Ethics Policy.
The hotline accepts calls on actions that may or
do violate that policy. The Ethics Committee quickly
addresses reports.

Executive Directors
Executive Officers
Various Business Sectors
Affiliates
Internal Audits
Internal Auditing Department

Appointment/Dismissal

ReportImplementation

Representative Director

Audit Corporate Auditor(Board of Auditors)

Appointment/Dismissal

Election/Dismissal

ReportReportDirectors (Board of Directors)

Appointment/Dismissal

Appointment/Dismissal

Assistant
Corporate Auditor's Department

Audit

Conduct Audit/
Auditing Staff
Financial Auditor (Auditing Firm)

Set up/instruct

Report

The hotlineʼs mandate is to be fair and swift. It

Risk-specificcommittees
Risk Management Committee
Proxy organizations

Major crises

Board of Directors

Crisis Measures
Headquarters

Ethics Committee

Safety Measures Headquarters
Responsible Care Committee
Product Liability Committee
Export Control Committee

receives reports from the Corporate Auditorsʼ Office andlabor union, which operate independently, as well as from

Other risks
Reportproblems that may arise. We set up the Compliance

General Stockholder's Meeting

ReportThis system covers any shortfalls in our internal control andExchange Act aims to ensure that financial statements are■Corporate Governance Overview

President

Center.

This system under Japanʼs Financial Services andreliable.

Supervise

We established the Ethics Committee, which theReportMonitor/Instruct

ReportMonitor/Instructthe Ethics Committee Administrative Office and generalaffairs sections within all offices. People can send reports
to an external law firm. They can also e-mail reports tointernal auditors.
The DENKA Group Ethics Policy specificallysafeguards
mistreatment.

whistleblowers

fromdiscrimination

andPrime oversightBusinesses(including Sales and Manufacturing Divisions)
Administration(including Internal Auditing, Environment and
Safety, Legal and Accounting & Finance
Departments)

Audits within Business Units(Including Administrative Dept., Legal Dept., Environment and
Safety Dept., and Quality Management Dept.)

Compliance Hotline

08

09

Corporate Governance and Compliancetion by eliminating ranks within the board while reinforcing

Corporate Governance Structure

We formulated our Risk Management Guidelines

CSR at DENKA

We must meet the expectations and respect of sharehold-our compliance system.

Risk Management

ing any problems.

Internal Controls

streamlining our management organization and bolstering

We conduct Group wide checks of business toDENKA CITY
Hydroelectric power plants∑80N; high-strength concreteWind turbine generator bearings
Silicon nitride

Highlighting applications for DENKA’s products and technologies.

Quick-setting agents for sprayed concrete linings

Eel farms

NATMICElectric trains

AN PLATE and ALSINK ceramic baseplates for inverters

HISUI EEL

Bridge supporting materials
PRETASCON and HARDLOC II

Golf clubs

HARDLOC; assembly adhesive

Cellular phones

MALECCA; heat-resistant ABS resin

Train exteriors
DX FILM

Underground drainpipes

DENKA C ITY

Wetsuits

TOYODRAIN

Chloroprene

Concrete repairs
Rising method and
HARDLOC II

Influenza vaccines
Influenza test kits

Preparation for improving joint functions
Macromolecular sodium hyaluronate

Light-Emitting Diode (LED) Lighting

Solar batteries

DX FILM; back sheet
Monosilane gas; an ultrahigh-purity special gas
TEMPLOC; Temporary coupling agent

DENKA HITTPLATE and Thermally conductive sheet

Automated multi-story car parks
POWER CSA

Advertising on bus exteriors
DX FILM

Flat panel display televisions
Wallpaper adhesives
EVA TEXAir conditioners
Office buildings, condominiums, and other structures
Cement

DENKA HITTPLATE
Inverter circuit board

DENKA HITTPLATE;
insulated thermally conductive metal circuit board
Transparent polymer
Thermally conductive sheet and spacer

Rain gutters

TOYO GUTTERS

Game machines

Transparent polymer

Air Conditioners

Digital cameras

WALLDUCT;
Piping protective
and decorative cover

HARDLOC OP; lens adhesive

Quake-resistant construction material
TASCON

DVD players

HARDLOC UV
Thermally conductive sheet and spacer

Personal computer

FUSED SILICA; Semiconductor sealant filler
Thermally conductive sheet and spacer

Audio equipment
Holding material for combustion catalysts
in automotive exhausts
ALCEN; alumina short fibers

DENKA HITTPLATE;
insulated thermally conductive
metal circuit board
Thermally conductive sheet and spacer

Coolant

DENKA POVALElectromotive power steering controllers
DENKA HITTPLATEHigh thermal conductivity circuit boards

Automotive interiors, vehicle-mounted
audio equipment, and door mirrors

Vacuum cleaners

Transparent polymers

Food packaging materials
Thermosheet OPS

MALECCA; heat-resistant ABS resin

Wire harness tapes for bundling
VINI-TAPE

Hoses, belts, boots covers, and air suspensions
Chloroprene and DENKA ER; synthetic rubbers

Basic Cosmetics

Fertilizer

URUOI

Calcium cyanamide and AZUMIN
ABS resin
Styrol MW

10Synthetic wig fibers

Refrigerators
PET bottle labeling film

TOYOKALON

CLEAREN; SBC resin

11Serving Society
DENKA HITTPLATE Insulated Thermally
Conductive Metal Circuit Board

Environmentally Friendly ProductsThis report highlights three of the fruits of our efforts
to develop environmentally friendly products.

DENKA HITTPLATE

Wholly owned DENKA Polymer Co., Ltd., specializes in the production and sales of polystyrene food packaging, focusing on
producing light foam PSP food trays, biaxially oriented polystyrene (OPS) trays and food packaging. Its efforts have led to thedevelopment of SOFLIGHT, a next-generation superlight food-packaging product that is both rigid yet supple.
Over the years, this subsidiary has deployed measures to combat global warming from carbon dioxide emissions,conserve resources and cut waste. As part of those measures it has prioritized the creation of lighter food packaging. Thissection spotlights SOFLIGHT, one such offering.

People-Friendly Food Packaging

Environmentally Friendly Food Containers

SOFLIGHT is a new food styrene packaging product thatcombines the rigidity of OPS and the flexibility ofpolyethylene terephthalate (PET). It is an ideal alternative to amorphous PET packaging.
SOFLIGHTʼs uses include containers for side
dishes, salted and dried food, and other containers, andsalad packages.
One drawback to the rigidity of OPS is that it
cracks easily. However, SOFLIGHT eliminates thisproblem without compromising rigidity, making it perfectfor users.

Our life cycle estimate (see note 1 below) is that carbon
dioxide emissions from disposal of SOFLIGHT packaging
is around 4% lower per unit of weight than that from PET
containers. Another benefit is that SOFLIGHT packaging islighter because of its reduced specific weight (see note 2
below). SOFLIGHT containers impose less environmental
impact, as they would emit about 24% less carbon dioxide
than PET counterparts with the same thickness.

Cutting Carbon Dioxide Emissions and Waste

Salesperson Comment

Reducing household waste is essential to lowering
Japanʼs carbon dioxide emissions and environmental
impact. The Revised Containers and Packaging Recycling Law requires businesses to pay part of therecycling costs. Our mission as a food packaging manufacturer will thus be to further lighten containers andreduce materials waste.

Our superlight packaging has
gainedconsiderablesocialattention, and has even featured
in news programs. We aim tobolster our profile and capture
new business opportunities byhighlighting the importance oflighter packaging.

Note :
1. Based on life cycle assessment data of 5.4 kilograms of carbon dioxide
per kilogram for SOFLIGHT packaging and 5.6 kilograms of carbon
dioxide per kilogram for A-PET packaging.
2. The specific weights are 1.05 for SOFLIGHT and 1.33 for PET.

Applications of Promising Energy-Saving Technology -- LED Lighting
LEDs look set to become a mainstream lighting source
because they consume far less energy than incandescentand other conventional lights, and they last longer.
We belong to the Japan LED Association, which has
estimated that LED lights deliver around five times theluminous efficiency of incandescent lamps. The association
has calculated that replacing all lighting in Japan with LED
models would cut the nationʼs annual carbon dioxide
emissions by around 4 million metric tons. This would enable
the Japanese government to comfortably clear its Kyoto
Protocol reduction target of 3.4 million metric tons per year by2010 from 1990 levels through measures to spread the use ofhigh-efficiency lighting.
LED lighting must deliver more luminous efficiency
and longer service lives to become truly popular. LEDs inlighting fixtures can only convert about 50% of the potential
luminous efficiency of their chips, the balance being lost as
heat. It is therefore a tremendous technological challenge tocombat such losses and fully harness the outstanding
attributes of LEDs.
Domestic and overseas LED lighting makers, electrical equipment manufacturers and research institutes are
increasingly using DENKAʼs heat-dissipation technologies.

Takemasa Kosugi
Kanto No. 2 Sales Department
DENKA Polymer Co.,Ltd.

Dielectric layer
Aluminum baseHeat dissipation

Comparing Conventional Electronic Circuit Boards and Our Thermally Conductive Substrate（Per Watt of LED power）

140
120

Glass-epoxy substrate

100
80
60
40

DENKA HITTPLATE

20
0

0

5

10

15

20

25

30

35

Current conducting speed (seconds)

Light Source Characteristics (calculated for the replacement of each light)
Light Source

Luminous efficency (ℓm/W)

Service Life (hours)

Environmental Impact

Power LED50

40,000◎

Incandescent lamp

15

2,000

○

Fluorescent lamp

100

5,000

△

Mercury lamp

55

5,000

×

Source: Latest Technologies and Market Trends 2009, by Japan Marketing Survey Co., Ltd.
JLEDS the 3rd Symposium lecture data

Helping Conserve Energy
Energy-saving technologies are constantly progressing forthe electronic parts of LED lighting, electrical equipment
inverter circuits and other products.
DENKAʼs heat dissipation technologies come fromyears of collaboration in ceramics and inorganic materials.
We are helping to safeguard the environment and contributeto social sustainability by revolutionizing energy conservation
technologies for electronic parts.

Salesperson Comment
DENKA HITTPLATE incorporates ourceramics and polymer technologies
and has a solid market track record, so
it enjoys outstanding customer trust.
We have recently been proposing the use of
DENKA HITTPLATE as a heat dissipation tool for LED
lighting, whose technologies continue to evolve. We areconfident that we can contribute to technologicalinnovation that conserves energy.
Satoru Mihara

Electronic Materials Division

LED lighting

12

13

Environmentally Friendly Products

For salads, side dishes and salted dried seafoods, and other fare

Key Applications
Automobile power steering motor circuit boards
Hybrid car DC/DC converters
Air-conditioner inverter circuit boards
LED lighting and related productsHigh power electronic component

Conductor (copper foil)

LED Package temperature (｡C)

(DENKA Polymer Co., Ltd.)

Cross-Section of HITTPLATE

Serving Society

SOFLIGHT Superlight Food Packaging

This product is used in electrical equipment. It features athermally conductive aluminum substrate coated with a layerof insulating epoxy resin incorporating a highly conductive
ceramic filler, on top of which a copper electronic circuit is formed.
Power transistors, LED devices and other heatemitting electronic components are mounted on the circuit.
High performance, integration and power requirements make it essential to develop technologies to disperse
the heat from electronic components in automobiles,
air-conditioners, lighting and other equipment. Many parts withstrict reliability and performance requirements employ ourtechnologies.

Serving Customers

2

Fostering Cement Recycling

SIGMA(Σ) 1000 Additive for High-Strength
Concrete that Lowers Carbon Dioxide Emissions

We maintain a system to recycle all our raw materials and fuels as cement.

Cement has long played a crucial role in human progress. Maintaining concrete s performance is essential for modern living.

Overview of Recycling System

DENKA s special cement additives business focuses on employing chemicals technologies to improve the capabilities
Wastes and by-products

shrinkage in mortar finishes and concrete structures. Others are NATMIC, a quick-setting agent for spraying concrete in tunnels,
TASCON, a nonshrink grouting material, and SIGMA(Σ), a powerful admixture for strengthening concrete.

Foundry sandClay

Q What does SIGMA(Σ) do?
This concrete additive reduces the amount of cement
required in structures, thus lightening them while improving
their resistance to impact and wear.

Life cycle assessments have become an importantpriority in the construction industry, which is looking to
products and repair and maintenance techniques toextend the performance of concrete structures. The

It does this by filling capillary pores with crystals of ettringite, a hydrated aluminum sulfate, to achieve highstrength. This eliminates the need for additional amountof unit cement.

industry also seeks ways to cut carbon dioxide emis-

Q What are the applications of this product?
The weight ratio of this additive in cement is around 10%.
Key applications include high-strength concrete piles forbuilding foundations, and concrete for dams and rivers,
water channels and road surfaces that must resist abrasion
and impact.

technologies to innovate solutions to these issues

１ The manufacturing process slashes carbon
dioxide emissions.
The emissions from producing SIGMA (Σ) are just
one-twentieth of those when making Portland cement
and one-tenth of those from blast-furnace slag cement
manufacturing.

As a leading manufacturer of special cement
additives, DENKA has harnessed its chemicals
while collaborating with other companies and publicbodies to develop and commercialize new offerings
that contribute to a sustainable social infrastructure.

Carbon Dioxide Emissions Intensities andCompressive Strengths of Concrete Products
Carbon dioxide emissions intensityof concrete products (kgC/m3)

The Environmental Benefits of DENKAΣ

sions.

120

Portland cement

110

Autoclave-cured
Portland cement

100
90

Portland cement
incorporating SIGMA (Σ)

80

Steam-cured Portland cement
incorporating SIGMA(Σ)

6080Incinerator ash
Construction soil

Ironmaterials

90

100
2

Compressive strengths of concrete products (N/mm )Slag

Scrap wood

Finishing millRotary kiln
Biomass boiler
for in-house
power generation

Recycling Coal Ash, Sewage Sludge and Other Resources
The plant has earned top marks for contributing to thecommunity through its operations. It uses by-products fromits operations and accepts coal ash from the thermal power
stations of electric power companies, and receives tires andwaste plastic. It also gets sewage sludge and household
waste from local government bodies. The plant recently
began converting construction soil into cement materials,
helping extend the lives of final disposal sites.
Every metric ton of our cement incorporates about
417 kilograms of recycled materials. We accepted 684,000

Recycled Resources Accepted

３ You can attain high strength with low-pressure
steam-curing, which has a low environmental impact.
Curing SIGMA(Σ) in this way results in a concrete
strength of 80-105 N/mm2, yet carbon dioxide emissions from this process are around 15% lower thanfrom conventional autoclave curing.

14

Sales Person Comment
Downturns in public construction projects and aprolonged slump in private sector demand have hit thecivil engineering and construction industries hard. Thissituation is an excellent opportunity
for DENKA to highlight its years ofexperience in product development
and its technologies for conserving
energy and the environment. We aim
to deepen our market presence toidentify what customers truly seek in
Takashi Sasaki
endeavoring to boost concrete Cement & Special Cement
Additives Divisionperformance.

1000
80 0

735 745780

980 990 961
890
880

206

645

350

300

40 0
〜
〜
0

684 〜
〜
00

01

02

03

04

External sources

05

06 07 08
(Fiscal years)
In-house sources

Recycled Material Categories

Contributing to Sustainability

plastic and other alternative wastes is that we aim to

Others 18%
Waste oil andplastic andwoodchips, etc.
5%alleviate global warming by helping reduce the consumption
We will continue to refine our technologies forconverting wastes and by-products to foster social

Sludge 24%
Accepted
Amount890,000 tons

Slag 22%
Fly ash 31%

sustainability well into the future.

We built our waste treatment facilities in 1982. As
they aged, we made it a top priority to plan
upgrades, as part of which we built a waste
treatment network with the collaboration of DENKA
and other local cement makers. One recent move
was to carbonize waste instead of burning it, so it
could be used in cement.

400

60 0

metric tons from external sources in fiscal 2008.

Stakeholder’s Opinion

450

417

of fossil fuels.
２ Less cement is needed to make high-strength concrete.
Adding SIGMA(Σ) to make high-strength concrete
reduces the amount of cement required by about 20%,translating into a carbon dioxide emission reduction ofaround 30%.

Blast furnace slag

Gypsum by-products

CementDryer and raw
materials grinder

to the community. Another factor in recycling scrap wood,

Blast-furnace slag cement
70

Waste oil

Our cement recycling business is a key ongoing contribution

70

50

Waste plastic

Fly ashSince 2002, we have carbonized around
3,200 metric tons of waste annually, significantly
reducing the amount of incinerator ash. I thinkthat this and other public and private sector
recycling efforts have contributed to social
sustainability.
Mr. Isamu Watanabe
General Manager of Itoigawa Sanitation Center,
Niigata Prefecture

15

Fostering Cement Recycling

Q Why does SIGMA(Σ) make concrete so strong?

SilicaSewage sludge

SludgeRaw materials

Reducing Environmental Footprints with Special Cement Additives

Used tires

Coal ash

Emissions intensity (kg/metric ton)

Limestone

Serving Customers

We make several popular offerings in Japan and abroad. One is CSA, an expansion material that reduces cracks andAmount treated (thousands of metric tons)of cement and concrete.

Serving Customers

3

Maintaining Product Safety

Collaborating in Chemical Industry Initiatives

We ensure safety in all our processes, from raw materials procurement
to research, production, logistics, consumption and disposal.
■ Materials Safety and Management Flowchart
Green procurement(Negative List)

ISO 14001, ISO 9001 and Good Manufacturing Practices (see note 1 below) Management of environmentally hazardous
Environmental and quality management support for affiliates
substances in products (Negative List)

3. Production
2. Outsourced
materials production
Manufacturing vendor audits

6. Products
4. Outsourced processing
and production

information on around 700 chemical substances. We are

We and other companies collaborate under the auspices ofparticipating in areas of the program that relate thethe International Council of Chemical Associations to evalu-

substances that we use.

ate the safety of around 1,000 substances that the Organi-● Long-Range Research Initiative

sation for Economic Co-operation and Development has

The Japan Chemical Industry Association, the American

designated. These substances are used heavily worldwide.

Chemistry Council and the European Chemical Industry● Japan Challenge Program

Council oversee this program, in which we are

7. Logistics

8.Customers

Under this program, manufacturers are working with thecollaborating. It entails long-term basic research into

Yellow cards(container labels)

JAMP MSDSplus
JAMP AIS(see notes 2 and 3)

Ministry of Health, Labour and Welfare, the Ministry of

endocrine disruption by chemical substances, cancer from

Economy, Trade and Industry and the Ministry of theneurological exposure to toxic chemicals and endocrine

Environment to collect, disseminate and assess safety

hypersensitivity from exposure to chemical substances.

Manufacturing vendor audits

5. Disposal
Waste contractor audits

Management of Product Safety in All Processes
Managing Supply Chain Safety

6. Management of Environmentally Hazardous Substances in Products

humans or the environment (or animal diversity).

tary measures and all substances subject to Japanese and

7. Displaying Yellow Cards and Container Labels (see note 4)international environment management and hazardous

Accidents while transporting some products could causematerials regulations. Our raw materials and manufacturingsignificant environmental damage. We therefore require

processes increasingly comply with list requirements.

drivers to carry yellow cards that explain post-accident

2&4. Manufacturing Vendor Audits

procedures. We also label containers to ensure swift andWe outsource some raw materials production processes

proper remediation. We regularly inform drivers of ourand semi-processed goods. We regularly audit manufactur-

requirements and conduct emergency drills.

ing vendors based on our standards for quality, logistics,

8. Materials Safety Data Sheets (MSDS)

environmental management and product safety.

We produce these sheets for all products to ensure proper

3. Environmental and Quality Management Support for Affiliates

handling according to physical and chemical hazards andWe share information with the consolidated affiliates

health and environmental risks. The sheets inform custom-

presented on pages 50 and 51 of this report to ensure thaters and help educate employees. We regularly revise thethey meet our quality, environmental and safety manage-

sheets in keeping with regulatory trends and distribute allment standards.

information to customers. We are revising our sheets in line

them to issue manifests and confirm collection. We regularly
evaluate the operations and financial positions of thesevendors and visit their sites.

ＩＳＯ ９００１

Date certified Registration number Date certified

Registration number

Products covered
Chloroprene, POVAL, ASR, SAKNOHOL, butyral, special
cement additives, cement, arsenic chemicals, monochloro acetic
acid, sodium monochloroacetate, caustic soda, monosilane,
dichlorosilane and hexachlorodisilane

Omi Plant

October
16,1999

187071／Ａ（BV）

August19, 1994

275156（BV）

Omuta Plant

October
28, 2000

284330(BV）

November7, 1998439189（BV）

Classification and Labeling of Chemicals(GHS). The sheets

nating information on environmentally hazardous substances in our products through the Joint Article Management Promotion-consortium s Material Safety Data System

Notes
1.Good Manufacturing Practices refers to standards that Japan s Ministry of Health, Labour and Welfare established in its Ministerial Ordinance on Standards for
Manufacturing Control and Quality Control for Drugs and Quasi-drugs . 2.The Joint Article Management Promotion-consortium (JAMP) is a cross-industry
association established in Japan in 2006 to encourage companies to properly manage information on substances and compounds, as well as chemical substancesin parts, plastics and other articles and to establish mechanisms to disclose and present information on supply-chain products. 3.JAMP s Material Safety Data

Polystyrene, acrylonitrile styrene resins, methyl methacrylate
styrene resins, methacrylate-butadiene-styrene resins,
methacrylate acrylonitrile butadiene styrene resins,
acrylonitrile butadiene styrene resins, styrene-maleimide
copolymers, styrene-butadiene copolymers, vinyl acetate,ethylene vinyl acetate copolymers, acrylic rubber,polystyrene sheet, acetic acid, styrene monomer, toluene, ethyl
benzene, rain gutters, vinyl tape, corrugated pipes, ducthosing, wall ducts and polyvinyl chloride

May
31,1999

180943（BV）

March
22, 1995

155885（BV）

Shibukawa Plant

May
21, 2001

363444（BV）

October
23, 1996

484541（BV）

Ofuna Plant

November
9, 2001

JQA-EM1895（JQA）

October25, 1996

JQA-1429（JQA）

Packaging tape, plastic films, polyvinyl chloride fibers, andemboss carrier tape for taping

Isesaki Plant

September
30, 2003

1090712（BV）

February28, 2008

428794（BV）

Stretch films, food packaging sheets, electronic packaging
sheets and cover tapes

Central ResearchInstituteJuly
5, 2004

352185（BV）

enable customers to use and dispose of our products safely
without harming animal diversity. We have begun dissemi-

Fused silica, special cement additives, nitride powder,ceramic substrates, steel additives, acetylene black, calcium
aluminate cement, FIRELEN, boron, boron carbide powder,thermally conductive materials and heat sinks

Chiba Plant

with the United Nations Globally Harmonized System ofplus and Article Information Sheet systems.

16

ＩＳＯ １４００１

Metal substrates, resin compounds, adhesives, emitters,
thermally conductive spacers, thermally conductive adhesive
sheets, electromagnetic shields and Elegrip Tape

System plus and Article Information Sheet systems provide standardized formats for presenting information on substances subject to management. Material Safety
Data System plus is mainly for substances and agents that are upstream in the supply chain. Article manufacturers produce Article Information Sheets based onthat information. JAMP aims to spread its systems throughout Japan and Southeast Asia. 4.The Japan Chemical Industry Association created a labeling format toaugment the Yellow Card system. The labels present emergency guideline numbers and United Nations identification numbers for different chemicals transported inrelatively small amounts on the same vehicle. The labels aid proper handling of these chemicals in emergencies.

17

Maintaining Product Safety /Management Systems

We produced a Negative List that defines customer’s volun-

Waste Management and Public Cleansing Law, requiring

We are pursuing ongoing improvements based on our quality andenvironmental management systems. We have secured ISO certifications as follows.

ing our environmental impact, our Negative List records all
by-products and impurities that may be hazardous to

We commission waste contractors in keeping with theManagement Systems

As part of our commitment to quality and safety and minimiz-

1. Green Procurement

5. Waste Contractor Audits

4Serving Customers

1. Raw materials

Materials safety data sheets● High Production Volume Program (HPV)Social Contributions

DENKA

Shibukawa
Plant
andHead Office

We aim to remain essential to society by communicating
and invigorating the areas in which we operate.

Sponsoring Friendship
Concerts

Mr. Mitsutaka Shiraishi on the piano. The
concert was part of Fureai Trio initiatives
by the renowned classical musicians.
These constitute the Friendship Program,which is for performances at schools,
Friendship Concerts for the general public
and

the

FriendshipMarket,which

comprises stalls run by the disabled at

DENKA

Helping Eliminate
Drunk Driving

enjoyed this rare concert opportunity, as

The Omi Plant responded to a request from thepart of which they tried playing the violin

Itoigawa Police Station to represent local businesses inand participating in a body percussion

The June 12 event was for elementary school students. They thoroughly

performance. The June 13 event was forthe collection of signatures for a campaign to stamp out
drunk driving. The station chief gave the plant a shielddeclaring its commitment to the initiative and sought
assistance with year-end and New Year campaign efforts.
Drunk driving is a criminal act. Therefore, the plant will keep exhorting employees and the community to refrain from driving after drinking alcoholand thus contribute to traffic safety.

Collaborating with
CitizensʼHall in
Cleanup Drives

DENKA

Omuta
Plant

Since 1994, the Omura Plant has joined withthe local citizensʼ hall in annual volunteer
cleanup drives during Environment Month

DENKA

Chiba
Plant

Participating
in Goi Rinkai
Festivalpeople. In summer 2008, the plant invited the
local community to the Denka Summer
Festival at its employee housing estate.

disabled by buying items from Friendship2009.

Market stalls.
Ms. Yoshida played violin, with

The plant will continue to engage with

Mr. Genichi Watanabe on the cello andthe community through various initiatives.

DENKA

DENKA

Shibukawa
Plant

CentralResearch
Institute

Holding Childrenʼs
Chemistry Classes

DENKA

Isesaki
Plant
Neighborhood
Cleanup Program
In fiscal 2008, the Isesaki Plant
expanded its monthly beautification day
efforts beyond its premises to encom-

Every year, the Ofuna Plant makes its grounds available to the Fujimicho Town

pass semiannual cleanups of neighbor-

Association for the enjoyment of local residents on the day of the Summer Festi-

ing areas, which take place following its

val. More people than usual crowded into the plant in 2009. A brass band from amorning assemblies. Employees weed

local primary school played to great applause and members of the plantʼs popularand collect empty beverage cans, fallen

music club also performed, to the enjoyment of the public. On the following day,leaves and other waste from the streets.

local children carried the Shiogama Shrineʼs mini-shrine around the town, visiting

Their work includes cleaning up nearby

the plant along the route.

Bando Park and around the plant in the
Ota area.

18

additionally deepened their ties with thefriends) in Shibukawa on June 12 and 13,

enterprise. The event attracted around 10,000

community efforts.

Engaging with the Community
through the Summer Festival

the Fureai Trio (Kyoko Yoshida andbooth at the 35th annual festival as a local

plant will continue to participate in these

Ofuna
Plant

members of the general public, who

In fiscal 2008, the Chiba Plant operated a

initiatives in the spring and the autumn. The

DENKA

DENKA sponsored public performances ofWeeding Around Hydrangeas

The Central Research Institute in Machida, Tokyo, held its

In 1999, the Shibukawa Plant planted around 8,000

first childrenʼs chemistry class on June 14, 2009, for mem-

Annabelle hydrangeas along a 2,000-square meterbers of the Machida Youth Firefighters. A total of 41 people

median strip of National Highway 17. We undertook

participated in this event. They included the 26 boys andthis effort with what is now the Ministry of Land,girls from the brigade who range from the second year of

Infrastructure, Transport and Tourism and Shibukawa

elementary school to the third year of junior high school, as

City, for which this hydrangea variety is the city flower.

well as instructors, volunteers and representatives from the

Nakamura Council takes care of the flowers and theMachida Fire Station.

plant participants in afforestation efforts. Plant employ-

The children used CLEAREN (see note below) to

ees remove weeds more than a dozen times every year.

create labels, slipping them over PET bottles and heating

The city has desig-

them to shrink the film. They also experimented with shrink-nated the area as a special

ing OPS sheets to make accessories. The children then took

attraction for passers-by,

the bottles home as souvenirs. The Central Researchas the flowers produce a

Institute plans to undertake other activities to deepen

beautiful carpet of white

community relationships.

in late June. One benefit
is that drivers are far

Note: CLEAREN is our styrene-butadiene block copolymer brand.

more careful in the zone,
enhancing traffic safety.
19

Social Contributions

Omi
Plant

music events.

2

Cultivating Our Employees

Good Company Program 2.0 Initiatives in Fiscal 2008

Human resources development is one of six key DENKA100 priorities,

We instituted this program, known as GCP 2.0, as part ofas our people are central to our growth.

efforts to raise employee awareness and reform opera-

We have held these gatherings at the Omi and Chibations, resolving problems in the pursuit of excellence.

plants to enable employees to exchange information with

General training course

We create environments that harness the skills of all employees.

We held our seventh DENKA100 Presentation in

GCP 2.0 Exchange Seminar

the people of other business units.

June 2008 for 10 groups to overview activities in thesecond half of fiscal 2007. Three domestic and overseas
groups delivered special talks on their endeavors.

Employee Education

The eighth presentation in December 2008 saw

Cultivating Our Employees1

GCP 2.0 seminar at Chiba Plant

12 groups participate, with two groups from head office and
The programs of our Human Resource Development Center help employees develop their career paths.

Other initiatives to promote DENKA100 include

In-House Education and Training
Personnel Requisites

1 Personal Growth:■
Harness greater skills, knowledge, techniques and performance to boost profits

young employees in their fifth year with DENKA, and otherand formulates and implements its own programs. There isemployees. The main focuses are such business fundamen-

a constant focus on establishing, planning and executing

tals as compliance and other legal areas, as well as safety

original educational and training programs according toinitiatives. We trained nearly 250 employees in fiscal 2008.

each operation to help improve the knowledge and skills ofSpecialist Courses

Business Unit Training

every individual employee.

business, information technology, trade, investor relations,

Each business unit has opened a techno school tocorporate social responsibility and purchasing courses.

preserve our technological and skills resources andEducational Support

DENKA Techno Schools

We assist employees taking language classes and corre-

The schools encourage employees to grow by

spondence courses. We also support those seeking tomaking it fun to learn and use their capabilities in the workplace.

Assistant manager program
Chief program
Five-year program
Follow-up program
New employee program

Assistant chief program
Technical worker program
General staff program

Technical

Business Unit
Training(including patents, quality control, and analysis)

Omi Plant

Management

Omuta Plant(including legal issues, accounting, and CSR)

Sales

(including logistics, trade, and purchasing)

Educational Support
Personal
advancement
driving results

Regularemployees

Specialist Courses
Company’s growth
contributing to social
progress

Assistantmanagers

New management
programRespecting Diversity
harness their technological knowledge and skills and pass

Employing People with Disabilities

them to younger employees. At the end of May 2009, we

We are creating safe workplaces so people with disabilities

had 263 employees who were retirees we reemployed.

can realize their potential.

Preventing Sexual Harassment
We formulated a policy to prevent sexual harassment andhave thoroughly informed employees about it through our

Fiscal 2006

Fiscal 2007

Fiscal 2008

in-house newsletter and our electronic bulletin board. The

1.85%

2.02%

1.93%

Ethics Committee maintains a consultation desk to handle

Note : These calculations are based on non consolidated ﬁgures.

employee concerns.
Our work rules and labor agreements containdisciplinary regulations regarding sexual harassment.

Chiba Plant
Shibukawa Plant

Language courses

Ofuna Plant

Correspondence courses

Isesaki Plant

Subsidies for acquiring formal qualifications

Research Institutes

4Management

Labor and Management Relations
maintains

positive

relationships

withemployee organizations, regularly meeting with officials of
Denka Techno School Specialist education in skills useful for business

20

Reemploying Retirees
In April 2004, we launched a program to rehire retirees to■ Percentage of Employees with Disabilities

Overview of Training and Educational Programs

Manager program

3

working environments for all employees.

provide employees with expert and practical knowledge.

Mandatory Job Level-Based Training

GCP 2.0 poster

labor Union based on mutual good faith and otherwise
negotiating with these bodies.

the The Denki Kagaku labor Union and The Head office21

Respecting Diversity

5• Improve the inventory management system• Preserve our technological and skills bases

We maintain various programs to provide comfortable

In fiscal 2008, more than 300 employees took accounting,follows:
Employee Education／GCP 2.0
Respecting Diversity／Labor and Management

Each business unit identifies areas needing improvement

Managers

manufacturing units. Key efforts in fiscal 2008 were as
Memo pads
incorporating a calendar

DENKA100 News

they need to fulfill their duties. We train new managers,

General manager programsatisfaction by sharing information between sales andacquire certain formal qualifications.

4

Generalmanagers

This initiative aims to improve productivity and customer

Attendees at DENKA100
Presentation

Under these programs, employees acquire the knowledge

3

Sales and Production Management
Project Efforts

3 Corporate Growth:■
Enhance DENKA s profitability, brand and reputation

Key Programs

2

distributing memo pads incorporating calendars.

2 Organizational Growth:■
Improve team performance through collaboration within and between business units

Mandatory Job Level-Based Training

GCP 2.0 seminar at Omi Plant

issuing DENKA100 News, displaying posters in-house andAnticipated Fruits of Training（1）Strive constantly to better yourself through business and social activities（2）Always respect others and remain humble and positive（3）Always be selfless（4）Drive change through teamwork（5）Gain broad insights, superior problem-solving skills
and the ability to transform potential into reality（6）Be cost-conscious

1

a plant made special presentation.

Cultivating Our Employees

Occupational Safety and Health, Security and Disaster Prevention

5

We endeavor to maintain safe and comfortable workplaces
and prevent disasters for societyʼs peace of mind.
Occupational Safety Record
The number of people involved in occupational accidents
requiring time off was as follows. The figures in parentheses
DENKA

4（0.80）Subcontractors

1（0.13）

Accident frequency rate =Occupational Safety Activities

Number of deaths and injuries
Total number of working hours

×1 million

The rate if two people per 1,000 employees suffered accidents would be about 1.0.

The graph below plots the accident frequency rates.
（Frequency rate）

2.5

Manufacturer average (calendar year)
Chemical industry average (calendar year)
DENKA
Subcontractors

Note: Source for manufacturer
and chemical industry data:
Ministry of Health, Labour andWelfareʼs Survey on Industrial
Accidents

2.0
1.5
1.0

Confirm that instructions have been implemented
and deploy additional measures
Masatomo Ishii, Industrial
Material section Isesaki Plant

On sheet product manufacturing, our mission is to ensure that
there are no operational accidents after processes have been
approved. We have done this by conducting risk assessmentsthat compare with other plant facilities, considering measuresand reflecting the findings in designs. During deliberative
gatherings some have pointed out serious
shortcomings with preliminary assessments.
However, this was good because we werethen able to better understand the production
processes and the facilities and equipment tochoose, reconfirming the operational precautions that we needed to take.

Improving Production Stability
Our security standards not only ensure that we operate
within predetermined limits but also that we maintain optimal
operating conditions by reviewing the operations andfacilities. For example, we rigorously investigate the operational causes of warnings and make improvements toprevent fluctuations that lead to such circumstances.

We provide programs that are specific to each business site.
We are improving experiential education and teaching materials.

Experiential Education
We devote considerable effort to educating our employees
to identify risks and responses. Examples include simulations of the dangers of ignitions from static electricity, beingcaught in machinery, cuts and falls, so employees learn theimportance of following procedures and using the correct
protective equipment.

REPORT

Report from a Participant in the Safety ClassThe Omuta Plant maintains
facilities to simulate various
dangers and each workplace
can use them for drills. I
learned a lot from one piece ofequipment, which demonstrated how easy it is to get ahand caught in slowly rotating
equipment. I also learned theimportance of immediately
switching machinery off whena problem occurs.

Producing Teaching Materials
We ensure through teaching materials that everyone canwork safety, even people newly assigned to work areas.

REPORT

Report from Education Leader

Many people without factory experience have recently
joined the Company. Therefore, we created readily
understandable materials that show what employees
must do to avoid injury.
For a start, we used photos to show themclothing and no-contact locations to ensure that people
undertake tasks after fully understanding them. We thencreated teaching materials a week or a month later sopeople would remember work stages.
As a result,even new employees
donʼt hesitate to ask
questions, so I think
our materials havehelped to improve
communication.

23

Occupational Safety and Health,Security and Disaster Prevention

Lesson:Change the way we monitor
external corrosion on piping.
We previously used warning
lamps to assign priorities forthe fluid temperatures of eachpipe. We now monitor
corrosion on all small-diameter
nozzles.

Commercial operation

22

Example accident:
Ethylbenzene leaked
from a styrene monomer
facility at the Chiba
Plant in December
2008. This was due toexternal corrosion of asmall-diameter nozzle.

Pilot operation

We built and run an OHSAS 18001-compliant setup at
the Chiba Plant.
It is naturally important to manage records andother documents and ensure compliance. We went one
step further by establishing rules forinternal audits and management reviews.
We are therefore in a position to assess
our achievements and identify the focusesof future efforts, thus maintaining
complete control over them.

Undertake additional measures

Koichi Ishibashi, Environment and
Safety section, Chiba Plant

Confirm upon completion

Manager Report

Security and Disaster Prevention
During the year, we experienced no fires, explosions orleaks of hazardous materials that would significantly affectthe communities in which we operate, although there was atrouble at a high-pressure gas facility.

Manager Report

Implement and produce

The Chiba Plant acquired OHSAS 18001 certification forsatisfying occupational health and safety standards. The
Omi Plant is building its occupational safety and healthmanagement system so it can qualify during fiscal 2009. The
Omuta Plant is similarly working on such a system.

Assess process suitability
at planning stage

Detailed designs and orders

Occupational Safety and Health Management System

Occupational HealthWe emphasize mental health measures, educate businesssites in line with their specific circumstances, secure assistance from industrial physicians and local health care institutions, and guide individual employees. We strive to preventand swiftly detect mental disorders and create working
climates that are conducive to emotional well-being.
We hold meetings before work starts every day toconfirm that our employees are in good shape, since healthmanagement is fundamental to safety.

Preliminary safety assessment

In response to occupational accidents injuring 10 employees
in fiscal 2004, we required departmental and section managers to assess sites and ensure safety. These considerations
prompted us to deploy our Good Company Program (seepage 21) and build our Occupational Safety and HealthManagement System. We convene regular gatherings for
Good Company Program announcements as part of ongoing safety enhancement initiatives.

DecideFiscal years (calendar years for manufacturer and chemical industry)

Evaluate ways to reduce safety and security risks and reflect them indetailed designs and equipment production specifications
Deliberate

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08

This encompasses establishing rules to assess risks andimplement measures where needed for changes in the 4Ms
ー man, machine, materials and methods.
Preliminary safety assesments are important whenbuilding plants that use new processes. Change management comes into play when we upgrade or modify facilities.
Facilities and operations units conduct preliminary
safety assessments and gather with in-house third parties todiscuss risks relating to fires, explosions and worker safety.

Determine facilities
outline and budget

0.0

Change Management

Review process

0.5

We focus Companywide on risk assessments for facilities,
chemical substances and operations. We deployed risk
assessments to ensure the safety of Contract workers. They
conduct preliminary evaluations before work starts andconsider ways to reduce risks, including through using
protective equipment and assigning people to monitor thework. DENKA maintains systems to check these processes.
Managers provide instructions and related
business units offer support so operators can embrace thefollowing qualities.
● Knowledge: Notably of laws and ordinances, proper
operation of facilities and equipment, chemical hazards andthe principles of chemical reactions● Skills: Including for safe working practices and procedures and expertise in designing safe facilities and equipment design● Awareness: Predicting risks and maintaining risk
alertness

Safety Education

Cultivating Our Employees

are the accident frequency rates.

Other plants and research facilities are improving
their systems, notably by using risk management techniques
and Plan-Do-Check-Act cycles in safety initiatives.

In fiscal 2008, 13 security problems led to temporary operating disruptions, more than the previous year. We
will step up our security and disaster-prevention efforts andstrengthen measures to minimize accidents.
We organize safety management conferences tocentralize the expertise and experience of our employees
and conduct emergency drills, as described on page 25.
We accord top priority to change management andimproving production stability.

DENKA’s Safety Initiatives: Omi Mine

DENKA’s Safety Initiatives: Chiba Plant

SpecialFeatureThe Base for DENKA’s Petrochemicals Business

Disaster Prevention Activities at Chiba Plant

The Source of DENKA’s Cement / Calcium Carbide Production

Safety Initiatives
at the Omi Mine

The Chiba Plant is in the Keiyo coastal industrial district near thecenter of Goi Minamikaigan in Ichihara City. This is Japan’ s largest
petroleum complex, storing oil and handling hazardous substances(in keeping with the Fire and Disaster Management Act) andpotentially explosive high-pressure gas (under the High-Pressure
Gas Safety Act).
The plant is one of Japan’ s biggest manufacturers ofstyrene monomer. It also makes polystyrene, ABS resin,transparent plastic, CLEAREN and other styrene-based products,
as well as such petrochemical offerings as vinyl acetate monomer,
synthetic rubber and polymer processing products.

dummies to show the risks of being caught in belt conveyors.

Collaborating with Other Companies within the Complex
under Government Guidance in Disaster Prevention Initiatives

・ Chiba Plant
Special Feature : Omi MineThe Omi Mine in Itoigawa, Niigata Prefecture, is one of the few
Japanese producers of top-grade limestone. The mine is home to
the Ore Section of the Omi Plant’ s Resources Department. In fiscal
2008, the mine extracted 3 million metric tons of limestone frommining rights held by DENKA at Mt. Kurohime, the reserves ofwhich are an estimated 5 billion metric tons. This raw material goesby conveyor belt and truck 365 days of the year to the nearby plant
to produce calcium carbide, calcium cyanamide , chloroprenerubber etc. The mine operates the followring Japan’ s biggest heavymachinery models to efficiently transport limestone.
Models: Caterpillar 793C mining truck—able to haul up to 218
metric tons of material;
Hitachi Construction Machinery EX3600 mining shovel—
featuring a bucket capacity of 40 metric tons.
Blasting crushes the limestone bedrock. A hydraulicloading shovel scoops up 30 to 35 metric tons of the material pertime and dumps it in the truck, which drops it in a shaft. The
limestone then travels through a tunnel to a machine that sorts it
into the required sizes, after which we transport it to plants.

Commemorative photo of Omi Mine office personnel during National Safety Week 2009１ Sharing Information(2) Disaster Drills and Safety Education for Subcontractors(1) Meetings (photo 1)
Meetings work heads, morning assemblies and group gatherings
share information with all personnel in discussing the day’s tasks andconfirming who will visit the site.

(2) Radio Communications (photo 2)
We have installed radios on all heavy machinery and vehicles to
instruct operators and inform of constant changes in the work
environment.
(3) Heavy Equipment Safety (photo 3)
Operators use monitors to confirm safety, as large machinery has
numerous blind spots. When site visitors approach the machinery,
operators halt work and assume a prescribed stance.

(4) Blasting
All workers evacuate to a rest area during blasts at appointed times
every day. A siren sounds before firings.

2 Safety Education(1) Experiential Learning
Our massive mining trucks could easily crush small work vehicles, so
we train in confirming blind spots and have operators actually runover abandoned vehicles to demonstrate the damage. We also use

We perform a wide range of drills, including for emergency treatmentof chainsaw injuries, for mine evacuation while wearing respiratorsand for operating automatic external defibrillators.
We run a training program for subcontractor personnel whoenter the mine. In fiscal 2008, around 250 of these people received
course completion certificates, which are valid for three years.

3 Risk Assessments
These initiatives designate work site risks and hazards and evaluate
risk levels, implement risk reduction measures and produce records.
The Industrial Health and Safety Law mandates risk assessment
efforts.
The Omi Mine conducts Group-specific risk assessments
to improve facilities based on evaluations of hazards and lower
disaster risks.
An on-site opinion box helps create a better working
environment by accepting requests and proposals on safety andother issues. The Safety and health Committee reviews andresponds to this feedback once per month.
Requests include those for installing or updating signs,
improving blast work report boards and maintaining fixtures.

Comment from Site Managers

1

2

3
Camera at rear of machinery

24

EX3600 mining shovel and car

The Omi Mine has been accident- anddisaster-free for 16 straight years. In
fiscal 2008, we received another Gold
Award for Mining Excellence from the
Minister of Economy, Trade andIndustry and other external recognition.
However, we are not resting on our Mamoru Sumita (left), General manager of thelaurels and will continue to maintain an Mining Department,and Nobutaka Kawata,
manager of Mining Section
accident-free workplace.
We aim to ecologically improve the site, covering mined areas
with soil and plants and seeding slopes. We aim to add at least 1,500
square meters of vegetation per year to the site.

Any disaster at the complex could cause massive human andproperty damage. Considerable legislation thus governs the facilities,
notably the Fire and Disaster Management Act, the High-Pressure
Gas Safety Act and the Basic Act on Disaster Control Measures, aswell as the Act on the Prevention of Disaster in Petroleum Industrial
Complexes and Other Petroleum Facilities.
As a business within the area of Ichihara-city Special
Disaster-Prevention District in Petroleum Industrial Complexes andother Petroleum Facilites. The Chiba Plant maintains a system andfacilities to safeguard against mishaps in keeping with instructions
from Chiba Prefecture and Ichihara City and works with other nearby
businesses to evaluate disaster-prevention measures and conduct
drills. We will continue working on policies to prevent and containdisasters at the complex.

Goi District Disaster-Prevention Policy Council
Our body comprises 25 companies. Its mission isto prevent or contain disasters within the complex
by sharing information between members andundertaking collaborative surveys and research.
Other efforts include conducting drills andmaintaining security at related business sites andwithin the area to support production.
Mr.Mikio Tomobe
Manager
Goi District Disaster-Prevention Policy Council Secretariat(Cooperative Self Defence)
Executive Director
Goi Joint Disaster Prevention Council (Self Fire Guard)

Drills at the Chiba Plant as part of initiatives of the Council for the Ichihara Petrochemicals
Complex Special Disaster-Prevention District

Ichihara Fire Department
The coastal industrial area encompassing Chiba,
Ichihara and Sodegaura is designated as a special
disaster-prevention zone of the central Keiyo coastal
district. The Ichihara Fire Department has deployedcomprehensive disaster-prevention measures thatharness the collaboration and support of businesses
in emergencies to prevent mishaps from occurring or
escalating at the complex.
Mr. Yukio Jibiki
Manager
Ichihara-city Fire-Prevention Section

Tri-party Collaboration in Local Fire-Prevention Activities
Chiba Plant
We operate our own fire brigade as part of ourfire-prevention organization. The plant layout
includes unoccupied land and special roads toeliminate any obstructions to firefighting. We
maintain firefighting equipment and conduct drills.
As a business within the Ichihara
Petrochemicals Complex Special DisasterPrevention District , we joined with nearby compa-

nies to create the Goi District Disaster Prevention Policy Council toundertake safety initiatives and strengthen collaboration. Members share alarge chemical fire truck through the Goi Joint Disaster Prevention Council.
We use community gatherings of the Ichihara Branch of theJapan Responsible Care Council and other opportunities to explain our
activities to local residents and engage in dialogue.

Fukuaki Wada
General Manager
Environmental, Safety and Technical Department
Chiba Plant

25

Tackling Environmental Issues
In this section, we report on progress with Group environmental efforts.

Fiscal 2008 Responsible Care Objectives and Achievements

Assessment codes:
A = Reached target
B = Partially missed target
C = Missed target

Inputs and Outputs
Total environmental impact of all business sites in fiscal 2008
Key Area

InputsBusiness Activities

Measurement unit glossary

Outputs
Products

Fuels

452,000 kl
Electricity
1.34 billion kWh

PlantsWater
81.6 million t

Soil discharges
PRTR substances ・・・・・・・・・・・・・・・・・・・・・・・・ 2 t

Raw materials

Waste generated ・・・・・・・・・・・・・・ 109,000 t

Explanation of Inputs

28

Prevent air andwater pollution

Implement EM09
environmental plan,
covering fiscal 2007
through 2009

NOx : 6,040t
SOx : 1,850t
Soot and dust : 163t
COD・BOD : 1,130t

NOx : 5,010t
SOx : 1,440t
Soot and dust : 117t
COD・BOD : 991t
We reached our goals because overall production plunged in
the second half of the fiscal year

A

32

Emissions dropped because we recycled wastes to resources
in-house and improved production processes to waste reducedA

In-house and externalreusage: 108,000t

We progressed in reusing resources at our cement plant andthrough external recycling, but we were unable to reach ourtarget. Actual result was 96,900 t

C

Cut final disposal toless than 1,200t by
2010

In-house and external
landfill: 2,390t

The Omuta Plant greatly reduced final disposal by reusing
more resources, but landfill at the Omi Plant increased
because of a shortfall in internal recycling capacity. Overall
final disposal thus declined only 30t, to 2,900 t, so we failed
to reach our medium-term targetC

By 2010, raise wastes
and byproducts incement to 400kg/t andcontribute to recycling

Increase wastes andbyproducts in cement toabove fiscal 2007 level of406 kg/t･ We increased wastes and byproducts in cement to 417
kg/t･ We attained our target for recycling and reusing industrial
wastes･ Comply with REACH･ Accommodate Globally
Harmonized System ofClassification andLabelling of Chemicals(GHS)･ We followed up based on implementation guidance for
REACH regulations･ We followed up on GHS trends and implemented initiatives
in Taiwan

Manage chemical
substances

Supply materials safety
data sheets and otherproduct safety informationand identify and consider
complying with overseas
chemicals regulations,
including the European
Union’ s Registration,
Evaluation, Authorization,
and Restriction of Chemical
Substances (REACH)

Manage chemical
substances andsuppress emissions

Lower emissions of substanceson PRTR to less than 137 t by
fiscal 2009

Cut Companywide emissionsof substances on PRTR to
167 t

We slashed emissions 30%, from 210 t to 148, owing toplanned improvements at each plant and enhanced removal
equipment efficiencies

Ensure safe
transportation

Fulfill responsibilities asowner of shipped goods･ Target a zero accident rate forin-house and off-site logistics･ Step up our Safe
Transportation Code of Conduct
as a Shipped Goods Owner･ We continued to revise our yellow card system and yellow
cards for containers (labels)･ We evaluated and analyzed transportation safety levels
and instituted improvements

Reduceoccupational
accidents･ Reduce occupational
accidents througheducation and safety
management systems･ Attain zero accidents
requiring employees totake time off

Conduct risk assessments
and identify and eliminate
unsafe work practices

All business sites conducted risk assessments andidentified and addressed unsafe work practices.
Note: Numbers in parentheses are for fiscal 2007
Number of accidents in Group: 4 (3); accident frequencyof 0.800 (0.595)
Number of accidents among subcontractors : 1 (3),
accident frequency of 0.130 (0.669)

Manage employee
healthUndertake activities
to maintain andimprove health

Maintain and improvehealthWe continued to focus on mental health and metabolic
syndrome (through education and a follow-up structure)A

Eliminate major
accidents

Eliminate major accidents,
notably explosions, fires
and large leaks of chemical
substances, and improve
production stability (inkeeping with thecharacteristics of specificplants, target more stable
operating conditions,enhancing operational
techniques and facilities)

Eliminate major accidents,
notably explosions, fires,and large leaks of chemical
substances･ There were no major accidents･ The number of problems impeding operations rose from 8
to 13･ We analyzed previous accidents and implemented
measures to prevent recurrences, and stepped up
preliminary safety assessments and change management

A

22

Target ongoing
corporate activities
that secure andmaintain community
trust

Continue to engage
communities and build
trust

A

18
19

Use resources
effectively

2,900 t▲CO2 emissions are totals from in-house fuel production and from electricity purchases.
COD is equivalent to biochemical oxide demand discharges in rivers.
External waste recycling covers materials converted externally into resources or fuel.
Final waste disposal refers to materials buried in external landfill sites.
Waste reductions are mainly from incineration.

This environmental impact data encompasses our plants

Main affiliates

and major affiliates within those facilities.

Product safety

A t O m i P l a n t : Denal Silane, Denak and Juzen Chemical
A t C h i b a P l a n t : Chiba Styrene Monomer, Toyo Styrene and Taiyo PVC

Medium-Term Environmental Plan
We are pursuing environmental improvements as part ofwastes.
We reached our waste final disposal objectives inmedium-term initiatives.
We instituted our third environmental manage-fiscal 2008, but were off-target in terms of energy conser-

ment plan, called EM09. This three-year initiative ends invation and pollutant release and transfer register emis-

fiscal 2009, and aims to conserve energy, lower pollutant

sions. We are analyzing the reasons for this, and will

release and transfer register emissions, and address

deploy the solutions from next fiscal year.

Medium-Term Environmental Plan
Item
Energy conservation (with fiscal 1990 as base year)

Constrain and reduce
wastesAmount recycled
externally▲ ▲ ▲ ▲ ▲▲Fuels are the sum of all fuels used at eachbusiness site, converted into heavy oil equivalents
on a calorie basis. They include fuels for our
in-house power plants.
Electricity is the total hydroelectric and purchased
power.

Fiscal 2007

Occupational
Safety and health

Disasterprevention

EM09
Fiscal 2008

Fiscal 2009

ActualTargetActualTarget

90%

88%

94%

89%

Emissions of PRTR substances

210 t

167t

148t

137t

Final waste disposal

2,930t2,390t2,900t

655t

26

C

Conservation

Explanation of Outputs

Community
relations

RelevantPage

The Omi Plant conserved energy by operating its
cogeneration facilities at full capacity and increasing water
turbine efficiency at the Oami Power Plant. Nonetheless,our energy consumption unit dropped to 94% because
production volume of our products plunged around 80%

Recycle resources

Waste reductions from water removal and incineration・・・・ 9,060 t

88,100 t

Evaluation

Lower energy consumption to 88% that of fiscal
1990

Reduce waste(zero emissions)

8,760 tAchievements

Lower energy
consumption to below
90% of fiscal 1990
levels by fiscal 2010

Final disposal(as landfill)

Amount recycled
in-house

Goals

Prevent global
warming andconserve energy

Water discharges
COD ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 991 t
PRTR substances ・・・・・・・・・・・・・・・・・・・・・・・・ 23 tExternal waste
684,000 t

Fiscal 2008

Maintain community trust･ We addressed complaints about noise and odors by setting up
response desks at each business site, deploying countermeasuresand responding faithfully to problems to obtain understanding･ We hosted business site tours and held children s chemistryclasses, engaged in community dialogue and participatedvoluntarily in social activities to maintain community trust

33

A

15

A

16

A

33

A

31

B

22
23

27

Tackling Environmental Issues

Air emissions
CO2（from energy sources）・・・・・・ 1.44 million t
CO2（from nonenergy sources）・・・ 1.24 million t
SOx ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 1,440 t
NOx・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 5,010 t
Soot and dust ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 117 t
PRTR substances ・・・・・・・・・・・・・・・・・・・・・・・・ 123 t

kl = kiloliter
kWh = kilowatt-hourt = metric ton
CO2 = carbon dioxide
SOx = Sulfur oxides
NOx = Nitrogen oxides
COD = Chemical oxide demand
PRTR = Pollutant Release andTransfer Register

Initiatives andFinal-Year Targets

Tackling Environmental Issues

REPORT

Transportation

We aim to reduce average energy consumption
intensity at least 1% annually in keeping with the
Law Concerning the Rational Use of Energy (seepage 31 for details)

Branches, sales
units, researchfacilities, cement
service stations
and otherbusinesses

In line with the Law Concerning the Rational Use ofEnergy, we will assess our energy use in fiscal
2009 and strive from fiscal 2010 to reduce averageenergy consumption intensity at least 1% annually

Carbon Dioxide Emissions
In fiscal 2008, our carbon dioxide emissions derived fromenergy fell 270,000 metric tons, to 1.44 million metric tons,

Energy Intensity Since Fiscal 1990
1.4

Efforts to Lower Carbon Dioxide Emissions
Our production units are upgrading to facilities that arehighly energy-efficient while switching from heavy fuel oil for
in-house power generation to natural gas, for which carbon
dioxide emissions are far lower. In keeping with the following
basic policies, we will keep reducing carbon dioxide
emissions at manufacturing stages while supplying customers with products whose emissions are lower, thereby
helping to alleviate global warming.

1.32

1.0

1.18

1.16

1.2
1.00

1.04
0.98

0.97

1.31

Carbon Dioxide Emissions
1.36

1.20

1.14

1.09
0.96

2,000

1.07

0.92

0.94

0.90

0.90

0.90

0.94

0.89

0.8

0.6

0.4

・Reduce carbon dioxide emissions from initial raw materials and production processes to final shipment
・Develop and supply products that reduce house refuse
and thus generate less carbon dioxide
We have undertaken the following Companywide
initiatives to reach our policy goals.
1. We identified energy conservation issues from the current
productivity improvement efforts of each business site toestablish targets through fiscal 2010, evaluating progresssemiannually.
2. We will employ life cycle assessment techniques to quantify carbon dioxide emissions from materials procurement
through manufacture for all major products by the end of

Taking a Balanced Approach to the Environment

One upshot of worldwide efforts to combat global
warming has been to try to suppress carbon dioxide
emissions by pricing them. But going too fast down thattrack could raise costs across the board, greatly harming
lifestyles.
We and other manufacturers need to avoid
such a fate by taking steps to lower their carbon dioxide

28

Cut carbon dioxide emissions intensity to 1.14 t/t of production
by fiscal 2010 (see note below), or 22.9% lower than fiscal
1990 levels
Note: Carbon dioxide emissions intensity for manufacturing all
products based on conversion into carbide output from Omi
Plant. The target is a total for chemicals and cement operations(using Nippon Keidanrenʼs energy conversion index)

Kotaro Takada
Manager of Environmental Burdens
Reduction Promoting Department

emissions and drive reductions from households, whose
emissions continue to rise.
We aim to help build a sustainable society bycreating products that benefit the environment by generating less carbon dioxide from manufacturing and theirconsumption.

1,750

1,740

1,710

1,680
1,550

1,500

1,490
1,410

1,440

1,300

1,390

1,240

1,070

1,000

500

0.2

0.0

90

00

01

Production

02

03

04

05

06

07

08

09

（Fiscal year）

Energy intensity (ﬁscal 1990 is a base of 1)

0

04

05

From energy sources

06

07

08
09
（Fiscal year ）From other sources (see note)

Note: Energy from other sources is that generated in processing raw
materials during manufacturing or treating waste.

The Earth Committee
We established this committee in July 2008 to support Companywide efforts to reduce carbon dioxide emissions.
The vice president chairs this body, which comprises the six subcommittees below.
The Information Subcommittee is now called Environmental Burdens Reduction Department.
Production Process
Subcommittee
Procurement
Subcommittee
Logistics Processes
Subcommittee
Research and Development
Subcommittee
Office Subcommittee
Information
Subcommittee

Evaluates using the Engineering Department and the Production Process Department
to help resolve business site issues
Encourages business units to purchase and use high-efficiency equipment
Systematically tackles logistics issues, through such means as the cultivation ofhuman resources
Calculates and discloses carbon dioxide emission cuts from products
Drives the development of lower-carbon products and processes
Drives carbon dioxide reductions from offices and sales activities
Presents initiatives through the in-house newsletter, DENKA100 News, and other tools

29

Addressing Global Warming

Notes
1. The Japan Chemical Industry Association targets a 20% reduction in energy
consumption intensity from 1990 levels (on crude oil equivalent basis).
2. The Japan Cement Association targets a 3.8% decrease in energy intensityfrom 1990 levels (on a calorie basis).

Production

Tackling Environmental Issues

The Fourth Assessment Report of the Inter-governmental
Panel on Climate Change concluded that increases ingreenhouse gas concentrations very likely caused higher
global temperatures from the mid-20th century. This observation prompted the public and private sectors to begin
collaborating in efforts to reduce greenhouse gas emissions.
We are acting in line with the voluntary action planof Nippon Keidanren and the reduction targets of the Japan
Chemical Industry Association (see note 1 below) and theJapan Cement Association (see note 2) to cut emissions ofcarbon dioxide, the prime greenhouse gas. Our transportation operations and sales, production and other businesses
have undertaken reduction efforts in line with the Japanese
government’s amended Law Concerning the Rational Useof Energy.
In July 2008, we established the Earth Committee,
largely comprising representatives from the head officemanagement sector to oversee these endeavors. In Octoberthat year, we set up the Environmental Burdens Reduction
Promoting Department, as the committeeʼs secretariat in
October 2008.
The committee manages our ongoing initiatives toconserve energy and implements the following programs tofulfill the goals of the Japan’s governmentʼs pilot emissions
trading scheme and reduce carbon dioxide emissions fromenergy sources in line with the Law Concerning the Rational
Use of Energy.

■ Carbon Dioxide Reduction Goals

TargetRoles and Activities of the Earth Committee and theEnvironmental Burdens Reduction Promoting Department

reflecting a production plunge from fall 2008. Emissions
from other sources were down 170,000 metric tons, to 1.24
million metric tons.
Our energy intensity deteriorated because of lower
production.
We registered under the Japan’s government’s
pilot emissions trading scheme in December 2008, so forthis report we calculated energy intensity and carbon dioxide
emissions based on the coefficients standards of the voluntary action plan of Nippon
Keidanren, recalculating figures for previous reports, which
we had based on the coefficients of the amended Law
Concerning the Rational Use of Energy.

TargetWe established the Environmental Burdens Reduction Promoting Department,
and are striving to lower our carbon dioxide emissions.

fiscal 2009. This effort will help us to develop more environmentally friendly offerings while lowering the ecologicalimpact of existing products.
All branches, sales units, research facilities andcement service stations are working to lower energy
consumption intensity 1% annually in keeping with the Law
Concerning the Rational Use of Energy.
Efforts to solidify employee awareness of savingenergy include wearing work apparel that requires lessair-conditioning in summer or heating in winter.

Emissions (thousands of metric tons)

Addressing Global Warming

Target1

Tackling Environmental Issues

23Electric Power Initiatives
We are harnessing hydropower, natural gas,
waste heat from production processes and other clean energy sources.

Hydroelectric Generation

Itoigawa

Omigawa Omi

Himekawa
Kubiki-Ono

Oyashirazu

Power Source Composition

Complying with Legislation

We use four types of power source. We operate a hydroelectric power plant, two thermal power plants and one
facility that generates electricity from cement heat (see note
1 below), and we also purchase power. We consumed 1.73
billion kWh of electricity in fiscal 2008. The chart below
presents the composition. Clean hydropower, natural gas
and exhaust heat-based generation sources accounted foraround 48% of the total.
We plan to use more natural gas at our thermal
power plants and upgrade our gas cogeneration facilities(see note 2), thereby raising our clean energy usage.
Notes
1. These power systems recover waste heat from cement production processes
to generate electricity.
2. Gas turbine with heat recovery steam generation.

Power Sources in Fiscal 2008
Total generated in-house
55％

Nechi
KotakiElectricity
Totalpurchasedconsumption
45%
1.73 billion
kWhHiraiwa

Kita-Otari❶ Omigawa Power Plant (3,300 kW)❾ Umigawa Power Plant No. 3 (2,600 kW)❷ Kotakigawa Power Plant (4,200 kW)❿ Umigawa Power Plant No. 4 (900 kW)❸ Oami Power Plant (25,100 kW)⓫ Himekawa Power Plant No. 6 (jointly owned; 26,000 kW)❹ Otokorogawa Power Plant (8,400 kW)⓬ Takigami Power Plant (jointly owned; 15,000 kW)

In April 2006, we became a designated emitter under theamended Law Concerning the Rational Use of Energy. We
responded by forming the Logistics Rationalization Project
Team within the Earth Committeeʼs Logistics Process
Subcommittee to drive ongoing Companywide efforts toboost transportation efficiency, improve logistics quality andsave energy to cut our carbon dioxide emissions intensity atleast 1% annually.
For example, we reviewed logistics within ourplants from a manufacturerʼs perspective, deployed new
cement tankers to streamline transportation of cement andfly ash and upgraded our fly ash silos. We made modal
shifts, using 20 t trailers for roll-on, roll-off ships and box
vessels. We used local ports to receive and transport
container cargo.
In fiscal 2008, our carbon dioxide emissions fromlogistics were 48,300 t from 831 million t-km of cargoshipped. We lowered our energy consumption intensity(amount converted into crude oil equivalents and divided bycargo volume) by 1.2% from fiscal 2006 levels.
We will review our logistics processes, including forplant warehouses and operations management, as part ofongoing efforts to conserve energy.

Modal Shifts
In fiscal 2006, we began focusing on modal shifts for transporting large cargo lots over long distances. We switchedfrom trucks to ferries and roll-on, roll-off vessels for the
Chiba Plantʼs shipments to the west of the Kansai region
and for the Omuta Plantʼs shipments to the Kanto region.
We thereby reduced carbon dioxide emissions by 158 t infiscal 2008.

■Progress in Modal Shifts from Truck to Ship
Transportation

Cargo subject to modal
shifts (1000t-km)
Carbon dioxide emission
reductions (t)Fiscal 2007

Fiscal 2008

2,830

3,175

112

158

Hydropower 32%(clean)Thermal power（natural gas)
13% (clean)
Thermal power (heavy oil) 7%

Cement process heat-based power
3% (clean)❺ Yokokawa Power Plant No. 1 (10,000 kW) ⓭ Nagatsuga Power Plant (jointly owned; 5,000 kW)❻ Yokokawa Power Plant No. 2 (16,000 kW) ⓮ Sasakura Power Plant No. 2 (jointly owned; 10,200 kW)❼ Umigawa Power Plant No. 1 (3,800 kW)⓯ Kita-otari Power Plant (jointly owned; 10,500 kW)

Loading at the chloroprene facility of Omi Plant❽ Umigawa Power Plant No. 2 (4,400 kW)

REPORT

Loading AZUMIN fertilizer and special cement additives fromOmi Plant at Port Himekawa into box vessel bound for Kyushu

Optimizing Logistics Flows to Conserve Energy

We constantly pursues ways to optimize the flow ofgoods from the fundamental stance of a manufacturerʼs
perspective. We endeavor to address dramatic swings in
the global economy and in raw materials prices, which
we accommodate through changes in goods destinations, products, amounts and delivery terms.
We make numerous preparations based ondiverse simulations to ensure that logistics quality

Yasuhiro Saito
Leader of the Logistics Rationalization Project Teamtranslates into better customer satisfaction and lower
costs.
We are expanding our use of nearby ports forcontainer-based exports, as part of which we are building
large constant-temperature automated warehouses inline with DENKAʼs efforts to boost capacity to become
the worldʼs top producer of chloroprene rubber.

Tomi Gas Turbine at Omi Plant
Oami Power Plant

30

31

Electric Power Initiatives／Rationalizing Logistics

Kajiyashiki
Umikawa Hayakawa

We are pressing ahead with modal shifts, the increase of transportation
efficiency and other initiatives to reduce carbon dioxide emissions.

Tackling Environmental Issues

We own and operate 10 hydroelectric power plants along
the Himekawa River in Niigata Prefecture. We jointly own
another five facilities in the area with the Hokuriku Power
Company. The total generating capacity of these facilities is
110,000 kilowatts(kW).
Together they supply 32% of our electricity, equivalent to 140,000 kiloliters(kℓ) of crude oil. Our clean hydropower operations significantly lower our greenhouse gas
emissions.
We are proceeding to replace a water turbine andupgrade other equipment as part of efforts to dramaticallyincrease the efficiency and output of that facility.

Rationalizing Logistics

Tackling Environmental Issues

Outputs

Wastes

5,200

4,900

5,520

5,680 5,670

Target

5,900
5,010

4,860

4,180
3,800

4000

300

297

233

250

222
200

200

191
172
142

150

3000

147

1200

1140

Our definition of zero emissions

1000

Final waste disposal

862
778

800

667 649
584

600

149
117

112

490
363

400

100

2000

242 232
210

200
1000

50

0

0

0
90

00

01

02

03

04

05

06

07

90

00

01

02

03

04

05

06

07

08 09
Fiscal year

148 137

97 98 99 00 01 02 03 04 05 06 07 08 09
Fiscal year

40

37.5

30

20

■ Fiscal 2008 Substance Emissions and Transfers
The following table shows substance emissions and transfers under the register that exceeded 1t.

Chemical and Biochemical Oxygen Demand (COD・BOD)

We cut these emissions about 18% by switching from heavy
oil to natural gas. We are exerting ourselves to reduce
further in fiscal 2009.

During the year, we increased water treatment facility
capacity at the Omi Plant and lowered production in thesecond half, causing emissions to drop around 40%.

4,300

4000
3,060

3000

2,600

2,860

3,040 3,040

2,870

2,080

2000

1,740

0

90

00

01

02

03

04

05

06

07

3,570

3000
2,250

2,060

2000

1,910
1,460 1,480

1,670 1,630
1,350

1,440
1,000

1000

4000

TargetEmissions ( t )5000

TargetEmissions ( t )Sulfur Oxide (SOx)

08 09
Fiscal year

991 1030

1000

0

90

00

01

02

03

04

05

06

07

08 09
Fiscal year

Emissions

PRTR substances

Amount
Air Water Soil Landfill Total transferred

Zinc

0

0

0

0

0

Ethyl acrylate

1

0

0

0

1

0

Acrylonitrite

5

0

0

0

5

12

Acetaldehyde

3

5

0

0

8

0

Aniline

0

0

0

0

0

4

Ethyl benzene

5

0

0

0

5

58

Ethylene glycol

0

6

0

0

6

5

Xylene

0

0

0

0

0

1

Vinyl chloride

5

0

0

0

5

0

Cobalt and chemical compounds

0

0

0

2

2

0

Vinyl acetate

21

0

0

0

21

0

Dimethyl formamide

0

0

0

0

0

17

Styrene

22

0

0

0

22

135

Water soluble copper salt

0

3

0

0

3

8

Toluene

59

0

0

0

59

30

Carbon disulfide

0

1

0

0

1

0

Bis(2-ethylhexyl)phthalate

0

0

0

0

0

2

Hydrogen fluoride

1

0

0

0

1

19

Boron and boron compounds

0

7

0

0

7

13

2-ethylhexyl methacrylate

0

0

0

0

0

2

2

Methyl methacrylate

2

0

0

0

2

19

Total

124

22

0

2

148

327

Dioxins (mg-TEQ) (see note)

183

25

0

0

208

0

10

7.6
4.0

0

90

00

01

5.0

02

6.8
4.6

03

04

4.9

05

3.7

06

2.9

2.9

07

08 09
Fiscal year

0.7

Soot and dust recycling facility at Omuta Plant

Units: t (excluding dioxins)
Note: Toxic Equivalents

32

33

Outputs

08 09
Fiscal year

× 100< 1

Total wastes generated

Waste disposal / 1000 t

5000

5,780

Target

6000

Emissions ( t )Emissions ( t )Soot and Dust
Emissions dropped about 21% because we used morenatural gas at the Omi Plant and lowered cement production.

We have made significant progress in reducing emissions of
PRTR(Pollutant Release and Transfer Register) substancesby analyzing the causes of such emissions, exploring effective solutions and modifying our facilities.
In fiscal 2008, emissions of substances on theregister dropped about 25%, reflecting facility modifications,operational improvements and lower production.
For fiscal 2009, we aim to reduce emissions
another 9% or so, largely by changing solvents containing
toluene at the Chiba Plant.

Tackling Environmental Issues

Nitrogen Oxide (NOx)In fiscal 2008, these emissions declined around 15%
because we scaled back operations at the Chiba Plant andreduced cement production.

Final Disposal
This was unchanged in fiscal 2008. We were able to reduce
final disposal by properly recycling soot and dust from the
Omuta plant, although there was an increase in external
disposal from the Omi Plant because recycling capacity was
insufficient.
The Companywide emissions rate remained at
2.66%.
In fiscal 2009, we will improve waste unit emission
and boost internal recycling rates, and reach the target ofzero emissions.

TargetEmissions

PRTR Substances Emissions

Emissions ( t )We are suppressing and properly treating substances
and wastes resulting from our production activities.

Target4

Tackling Environmental Issues

5

6

Environmental Accounting

Environmental Performance

In fiscal 2006, we began accounting for our investments,
spending and environmental and economic effects to assess
the impact of our conservation investments.

We disclose performance data for environmental activities at six plants.

Environmental Performance Data

１ Conservation Costs
In fiscal 2008, initiatives to save energy accounted for 51% of environmental investments, with research and development
spending to conserve resources representing another 32%.

PlantsCoverage: Plants and Research Institutes

Conservation costs (millions of yen)

Details

Investments

Expenses

1,640

2,330

1. Business site costs(1) Pollution prevention

Environmental burden reduction measures(2) Conservation

Conserving energy(3) Recycling resources

Using resources effectively

286

1,460

1,230

23

125

846
0

2. Upstream and downstream costs

Changing raw materials

03. Administrative costs

Environmental education

05

4. R&D costs

Conserving resources

781

1,530

5. Social activity costs

Community relations

5

0

177

7. Others

0

0

2,420

4,050

Total

2 Conservation Effects

Omuta Plant

Chiba Plant

We calculated the environmental load data.
Environmental load
Carbon dioxide emissions (from energy sources)

Units

Fiscal 2007 results

Fiscal 2008 results

Effects

1000 t

3,110

2,680

430

PRTR substance emissions

t

210

148

62

NOx emissions

t

5,900

5,010

890

SOx emissions

t

1,740

1,440

300

Soot and dust emissions

t

149

117

31

1000m3

83,20081,6001,600

Water used
COD・BOD discharges
Waste
Final waste disposal
Carbon dioxide emissions from transportation

t

1,630

991

639

1000 t

112

109

3

t

2,930

2,900

30

1000 t48

48

0Shibukawa
Plant

Ofuna Plant

3 Economic Effects
We calculated proceeds from selling wastes, energy savings, reductions in waste treatment costs and yield improvements.
Category
分類Profits

Item
項目

Proceeds from selling waste from core operations
and income from recycling wastes
Lowering energy costs by conserving energy

Cost reductions

Reducing waste treatment costs by conserving or recycling resources
Improved yields

Total

34

効果の内容
Details（単位：百万円）
Effects
経済効果(millionsof yen)Sales profits

565

Conserving energy

239

Using resources effectively

(28)
170
945

Isesaki Plant

Fiscal 2006

Fiscal 2007

0.91
1,060
36
4,030
1,730
128
71,7101,590
89,600
1,190
0.95
110
6
1,140
1
5
1,200
1
7,020
2,180
0.89
530
181
485
326
14
9,860
68
23,100
206
1.16
10
6
10
27
1
3,920
9
474
19
0.86
10
1
3
0
0
67
0
200
13
0.99
10
0
0
0
0
0
275
59

0.95
1,040
43
4,220
1,510
137
69,1001,600
79,900
1,470
0.91
120
8
1,160
2
4
1,300
1
8,980
1,190
0.85
510
153
508
209
8
9,730
24
22,000
211
1.00
10
5
9
25
1
2,700
3
552
13
0.81
10
1
4
0
0
71
0
194
13
0.99
10
0
0
0
0
320
0
211
28

Fiscal 2008 Fiscal 2009 targets
0.95
930
17
3,870
1,340
108
66,800964
82,800
2,330
0.92
110
6
770
1
5
1,308
1
9,770
420
0.93
370
120
355
76
3
9,690
22
15,400
124
1.08
10
4
8
23
1
3,430
4
453
6
0.80
10
1
2
0
0
70
0
211
22
1.02
20
0
0
0
0
326
0
172
0

0.92
810
11
3,440
900
104
1,000
74,600
330
0.90
100
6
1,000
1
4
1
8,490
200
0.87
440
114
411
72
3
22
18,100
95
0.95
10
5
14
24
1
4
366
4
0.77
10
1
2
0
0
0
211
22
0.94
20
0
0
0
0
0
165
0

Note: Totals of individual figures in this and other tables may not be exact because we rounded down fractions. The totals for this table match the figures in the Inputs
and Outputs section on page 26.
We registered under the Japan government s pilot emissions trading scheme in December 2008, so for this report we calculated energy intensity and carbon dioxide
emissions based on the coefficients standards of the voluntary action plan of Nippon Keidanren, recalculating figures for previous reports, which we had based on
the coefficients of the amended Law Concerning the Rational Use of Energy.

35

Environmental Accounting / Performance0

6. Environmental damage costs

Omi Plant

Units
Compared with fiscal 1990
1000t
t
t
t
t
1000m3tttCompared with fiscal 1990
1000t
t
t
t
t
1000m3tttCompared with fiscal 1990
1000t
t
t
t
t
1000m3tttCompared with fiscal 1990
1000t
t
t
t
t
1000m3tttCompared with fiscal 2002
1000t
t
t
t
t
1000m3tttCompared with fiscal 2005
1000t
t
t
t
t
1000m3tttTackling Environmental Issues

Category

Item
Energy consumption indicator unit
Carbon dioxide emissions (from energy sources)
PRTR substance emissions
NOx emissions
SOx emissions
Soot and dust emissions
Water used
COD・BOD discharges
Waste
Final waste disposal
Energy consumption indicator unit
Carbon dioxide emissions (from energy sources)
PRTR substance emissions
NOx emissions
SOx emissions
Soot and dust emissions
Water used
COD・BOD discharges
Waste
Final waste disposal
Energy consumption indicator unit
Carbon dioxide emissions (from energy sources)
PRTR substance emissions
NOx emissions
SOx emissions
Soot and dust emissions
Water used
COD・BOD discharges
Waste
Final waste disposal
Energy consumption indicator unit
Carbon dioxide emissions (from energy sources)
PRTR substance emissions
NOx emissions
SOx emissions
Soot and dust emissions
Water used
COD・BOD discharges
Waste
Final waste disposal
Energy consumption indicator unit
Carbon dioxide emissions (from energy sources)
PRTR substance emissions
NOx emissions
SOx emissions
Soot and dust emissions
Water used
COD・BOD discharges
Waste
Final waste disposal
Energy consumption indicator unit
Carbon dioxide emissions (from energy sources)
PRTR substance emissions
NOx emissions
SOx emissions
Soot and dust emissions
Water used
COD・BOD discharges
Waste
Final waste disposal

Serving Shareholders and Investors

1

3

Investor Relations■ Segment Sales

3 Other Investor Relations Initiatives
We are endeavoring to enhance our investor relations
program, as part of which we regularly update our Japanese
Web site for shareholders. We will keep striving to maximize
awareness of the Company and proactively disseminate fair
and timely information.
Since 2008, the CSR report has also fulfilled thefunction of the Annual Report. Therefore, this reportcontains selected financial data.Furthermore, the English
version of the CSR Report is disclosed on our Website.

2 For individual investors

2

Consolidated Financial Highlights■ Organic materials¥139,542 million■ Segment Operating Income (Loss)■ Organic materials(¥1,889 million)

41.8%■ Electronic materials■ Others¥36,362¥37,823 million

million■ Inorganic materials■ Functional materials and plastics¥53,057 million¥67,343 million■ Electronic materials■ Others¥3,037¥528 million

million■ Inorganic materials■ Functional materials and plastics¥2,480 million¥6,213 million

Organic Materials
Including raw materials for synthetic resin, synthetic resin, acetic chemical products and synthetic rubber(Millions of yen)
Fiscal 2004

Fiscal 2005

Fiscal 2006

Fiscal 2007

Fiscal 2008

280,033

307,923

329,262

363,996

334,130

Operating income

25,585

26,06929,877

29,912

10,302

Ordinary profit

21,897

23,91326,006

24,9183,094

Net income

13,587

15,365

15,734

6,660

1,439

Total assets

328,248

349,689

365,301

375,364

377,912

Total net assets

130,715

146,148

164,643

161,870

150,142

Shareholders equity ratio (%)

39.8

41.8

43.5

41.6

39.1

Net income per share (yen)

27.70

31.08

32.03

13.57

2.89

Shareholder’s equity per share (yen)265.71

297.23323.81

317.91300.60Denka Singapore s sales volumes of polystyrene resin were down.

acrylonitrile butadiene styrene resins and other styrene-based

Unit sales of chloroprene rubber dropped because of plummeting

offerings, as well as for transparent polymers and CLEAREN.

demand in the second half of the year for automotive and adhesive

Compounding this situation, a higher yen and softer market

applications, and sales of these products decreased owing to aconditions caused profitability to deteriorate, while exports declined.

higher yen. As a result of these factors, segment sales fell ¥43,507

These factors caused decreases in volumes and sales. Subsidiary

million, or 23.8%, to ¥139,542 million.

CLEAREN ﬁlm for PET bottle labels

Chloroprene rubber used in wetsuits
Chloroprene rubber ships

Operating Income

Net Sales（billions of yen）

400
300

280

307

329

363

（billions of yen）

29

29

30

25

334

26

Inorganic Materials
Fertilizer and inorganic chemical products, cement and special cement additives

20

200

10

10

100
0

0

2004

15.9%

2005

2006

2007

2008

2004

2005

2006

2007

2008

Sales of fertilizers rose because of volume gains in calcium cyana-revised prices offset lower volumes from slower public investment

mide owing to declines in imports of competing offerings andand private-sector demand. The market for special cement additives

because of price adjustments in response to high raw materials

remained generally adverse. Segment sales increased ¥4,023

costs. Volumes of alumina cement and other refractories for steel

million, or 8.2%, to ¥53,057 million.

materials fell due to plunging second-half demand, although priceadjustments boosted sales. Cement sales were unchanged, as

Ordinary Profit

Net Income（billions of yen）

20

（billions of yen）

Net Income per Share（Yen）

16

30

21

23

26

13

24

15

15

31.0

32.0

12
8

10

27.7

40
30

13.5

4

10

3
2004

36

2.8

0

0

2005

2006

2007

2008

20

6

2004

2005

2006

2007

1
2008

0

Calcium cyanamide fertilizer

Our cement accepts and recycles
wastes and other materials

Bridge employing our nonshrink
grouting material

37

IR, Highlights
Segment Performance

Net sales

Domestic and overseas demand plunged for styrene monomer,

Serving Shareholders and Investors

1 For institutional investors
We held a full-year results orientation in May 2008 and aninterim one in November for analysts, fund managers andother institutional investors. We overviewed our operations
and highlighted key businesses. We also arranged individual
orientations and small meetings and held plant tours.

We held many orientations around Japan, including in Niigata,
Sendai and Osaka, to present our history, results and businesssites and outline each operation. Many attendees shared theirviews and gained a better understanding of DENKA.

Segment Performance of Fiscal 2008

Serving Shareholders and Investors

4

Research and Development Activities

Electronic Materials

10.9%

Electronic components, electronic packaging materials and functional ceramics

Volumes and sales rose for electronic circuit substrates for electrictrains and environmental applications.

Spherical fused filler volumes were down at Singaporean
subsidiary Denka Advantech Pte., Ltd. Denal Silane’s sales ofmonosilane gas declined because of lower demand for liquid
crystal displays and semiconductors. Volumes for HARDLOC

sealants and for electronic packaging materials, including Thermo

structural adhesive also decreased, reflecting reduced demand forsheet EC for embossed carrier tapes to transport semiconductors ,electronic component applications. Segment sales therefore

reflecting major inventory adjustments in the semiconductor anddropped ¥4,297 million, or 10.6%, to ¥36,362 million.

Carrier and cover tape fortransporting electronic parts

Fused silica filler for
semiconductor packaging

HARDLOC structural adhesive

Functional Materials and Plastics

20.2%

2 Inorganic Materials

Packaging, construction, and industrial materials, and medical and pharmaceutical products
synergies from a merger with Clear Tech Sheet Co., Ltd. Subsidiarypipes used in agriculture and engineering.

DENKA Polymer performed well with its plastic products, partly because
it revised its prices.

for wigs, reflecting demand growth in North America and Africa, but

In pharmaceuticals, volumes and sales grew steadily for asales declined because the higher yen caused prices to fall.Volumes

high-molecular hyaluronan that improves joint functions. Denka

and sales improved for weather-resistant DX Film, a polyvinylidene

Seiken boosted influenza vaccine volumes and generated solid

fluoride film.

sales of diagnostic reagents. Sales for this segment thus advanced

Sales of food packaging sheet were up, partly because of¥6,810 million, or 11.3%, to ¥67,343 million.

In special cement additives, we are developing new productlines and proposing new technologies to differentiate
ourselves and satisfy private-sector demand. We arecultivating construction applications for our expansion
materials. New product development focuses on the maintenance and repair market and ultra-high strength, highdurability concrete products, notably fiber-reinforced
concrete.
In fertilizers and inorganic products, we are concentrating R&D on following up on production technologies foralumina fibers and new automotive applications. We are also
pursuing R&D to strengthen our calcium-aluminate cement,
fertilizer and other operations.

3 Electronic Materials

TOYOKALON
synthetic fiber for wigs

DX Film for solar cell materials

In electronic components, we are developing new offerings
to augment our thermal conductivity substrates and thermalmaterials offerings for the promising LED market while pushing ahead with research to boost the competitiveness of ourthermal components for power electronics. We are also

SUVENYL® preparation forimproving joint functions

Holding Company Established in Singapore
One key management priority is to boost overseas
revenues to at least 50% of net sales, from just over 30%
currently. We have established business units in suchlocations as Shanghai, Hong Kong and Taiwan. We are
now focusing on the South and Southeast Asian markets,
which encompass the fast-growing Indian Thai andVietnamese economies. This consideration led us toestablish the wholly owned Denka Chemicals Holdings
Asia Pacific Private Limited on April 16, 2009.

We started making and selling acetylene black,styrene resins and fused silica in Singapore through two
subsidiaries in the 1980s. The new subsidiary now
oversees those businesses. We plan to place othersubsidiaries in neighboringmarkets under the new
Denka Chemicals Holdings
holdingcompanytoAsia Pacific Private Limited
streamline the efficiency of
our regional operations.
Denka Singapore
Private Limited

Denka Advantech
Private Limited■ Research and Development Organization(as of October 2009)

4 Functional Materials and Plastics
In polymer processing products for packaging, construction
and industrial materials, we are developing weather-resistantfilms for solar cells and synthetic fibers. We are taking advantage of our capabilities in film and sheet, profile extrusion andadhesive coating technologies to join hands with Group
companies and drive expansion.
R&D in pharmaceutical products aims to expand
our market share in fermented high molecular hyaluronan,
which improves joint function, and to create new applications
that take advantage of the properties of hyaluronan. Denka
Seiken is developing safe and effective vaccines while developing bacteriological diagnostic reagents to detect infectious
diseases that threaten societies, as well as the virus, clinicalchemistry diognostic reagents and immunochemistry
diagnostic reagents that are vital for health management.

5 Other Businesses
Denka Engineering Co., Ltd., designs and installs industrial
equipment. Its R&D is focusing on more efficient pneumatictransfer equipment for powders and waste water treatment
facilities.

Advanced Research Dept.
Central Research Institute

Biochemistry Research Dept.
Material Characterization & Analysis Dept.

President
Electronic Materials InstituteHigh Performance Polymer Research Dept.

Chief Technology Officer
Polymer Technology InstituteManaging Executive Officer, Research & Development
Research and Development Department

Fine Electronic Materials Research Dept.
Functional Electronic Materials Reseach Dept.

Polymer Processing Research Dept.
Elastomer Research Dept.
Ceramic Research Laboratory
Inorganic Materials Research Laboratory

Note: The Chief Technology Officer and the Director for Research and Development oversee research policies, resource allocation and other areas for all of the Company’s research departments.

38

39

R & D Activities

Volumes and sales were solid for plastic rain gutters and corrugatedShipment volumes rose for TOYOKALON synthetic fiber

1 Organic Materials
We are reinforcing production technologies, improving
quality and developing new styrene-based functional resins,
including transparent and heat resistant resins and shrink
materials. A Singaporean subsidiary has increased production capacity, contributing to sales.
We are bolstering our production technologies inchloroprene, ER rubber, acetylene black and other organic
chemical areas to expand our operations in Japan andabroad. In chloroprene rubber, we are developing newprocesses and grades based on facilities upgrade plans toenhance our competitive edge.

related industries.

investing heavily in facilities for the products we develop. We
are developing specialty functional adhesives and cultivating
markets that harness our ultraviolet light-curing technology, agood example being temporary bonding adhesives forelectronic parts.
In electronic packaging, we have focused development on matching market requirements, particularly for tapes
for transporting electronic components and adhesive tapes
for protecting and fastening semiconductor wafers. These
efforts have helped us to expand our business.
In functional ceramics, we have pursued higher
performance in spherical fused silica for semiconductor
sealants while developing nanofillers and other functional
fine particles, including spherical alumina for thermal materials and semiconductor sealants. We are also working on
boron nitride products for semiconductor manufacturing
processes.

Serving Shareholders and Investors

In contrast, volumes and sales were down for suchfunctional ceramics as spherical fused filler used in semiconductor

We reinforce our existing offerings with proprietary technologies while cultivating promising peripheral technologies todevelop highly functional products. A key priority is to rapidly
meet market demands. In fiscal 2008, we allocated ¥10,285
million to R&D operations, which employed 633 researchers.
During the year, we had 221 outstanding applications inJapan and registered 282 patents (including for utility
models) domestically.

Site Report

1

Omi Plant

Site Report 2009

ProfileOmuta Plant

Site Report 2009

Profile2209 Omi, Itoigawa, Niigata+81- 25 -562- 6105
849 (at March 31, 2009)
Inorganic materials: Cement, special cement additives, carbide, lime,
calcium cyanamide and ALSEN (alumina fiber)
Organic materials: Chloroprene rubber, DENKA POVAL and monosilane
Pharmaceuticals: Hyaluronic acid preparation

Operations

Since our establishment in 1921, we have maintained unique carbide
chemical operations that exploit abundant in-house assets. These include
Mount Kurohime, with its five billion metric tons of limestone reserves, and170,000 kW of in-house power generating capacity. Our broad productrange includes calcium carbide, chloroprene rubber and cement. In recent
years, we have diversified into inorganic fine chemicals andpharmaceuticals. We continue to develop our business to meet new anddiverse challenges in chemicals.

Address
Telephone
Employees
Major Products

Operations

Shinkai-Machi 1, Omuta, Fukuoka+81-944-52-1055
467 (at March 31, 2009)
Inorganic materials: Carbide, calcium cyanamide, FIRELEN, alumina
cement (for refractories) and special cement additives
Organic materials: DENKA BLACK
Electronic materials: Fused silica filler, silicon nitride, boron nitride,aluminum nitride, ceramic electronic circuit substrates and thermallyconductive sheets
This facility is the oldest of DENKA’ s plants. It started operations in 1916,
one year after the Company’s creation, to produce carbide and calcium
cyanamide. Since then, the plant has innovated diverse inorganic chemical
products based on its proprietary electric furnace, high-temperature control
and nitride technologies. In recent years, we entered the fine ceramics andelectronic materials fields. We contribute to the development of theelectronics, automotive and numerous other industries.

Site Report

Address
Telephone
Employees
Major Products

Omi, Omuta

CSR Policies
General Manager Policies
We aim to create a vibrant workplace.
＜S a f e t y ＞ We will create a cheerful and active workplace that is free of occupational accidents, major
security problems and occupational illnesses.
＜Environment＞ We will pursue lasting trust as an outstanding manufacturer and undertake
responsible Care initiatives that all employees are aware about.
＜ Q u a l i t y ＞ We will meet customer quality demands and enhance trust.

CSR Policies
General Manager Policies
Although prospects are challenging in light of the prolonged recession, we aim to maintain profitability by
Hitoshi Watanabe
Senior Executive Officer
General Manager of Omi Plant

slashing costs. At the same time, we will address product issues and develop new offerings to prepare for an
economic recovery.

Environmental, Safety and Quality Policies① Maintain Safety, Health and Security

Fiscal 2008 Achievements and Fiscal 2009 Initiatives
Himekawa Port Comprehensive
Emergency Drill

employees to the police station. The police

We participated in a joint drill for oil spillage

commitment to the initiative.

chief presented us with a shield declaring ourand fire at Himekawa Port. We created adisaster prevention structure for the facility
though collaboration with such related
institutions as the Niigata Coast Guard Office,the Itoigawa City Fire Department and the Himekawa Port Usersʼ

Prize for Safety Excellence fromJapan Cement Association
The cement department at Omi Plant received this awarded for 150,000
hours without accidents at the 59th Cement Safety and Health Convention .

We will pursue compliance and raise employee awareness to ensure safety, health and security.

Shohei Tamaki
Executive Officer
General Manager of Omuta Plant

We will maintain our zero-accident record and create an energetic workplace.
② Continue Pursuing DS09 Targets and Complete KIT09 Objectives
We will build a production system that enables us to generate profits in an adverse operating climate.
We will address issues and accelerate product development. We will also convert crises into opportunities.
③ Improve Customer Satisfactions
We will better understand our markets and customer needs and overcome the competition by building customer trust.
④ Overhaul Facility to Conserve Energy and Resources
We will reduce carbon dioxide emissions from our energy usage by improving exhaust heat recovery and production efficiency.
We will constrain waste production and pursue zero emissions.

Association.

Omi River Area Cleanup
A total of 64 employees and representatives of the Transportation

Fiscal 2009 Initiatives

Sub-Committee in the Health and Safety Council participated in this effort.

We aim to secure Occupational Safety and Health Management System

The initiative helped improve employee awareness of the need to conserve(OSHMS) certification for ensuring a safe and secure plant for employees

the environment.

and the community.

Participating in Local Festivals
The employees participated in many local events, including Take No
Karakai, which highlighted the folk heritage.

Presenting Pledge to Itoigawa Police Station

Fiscal 2008 Achievements and Fiscal 2009 Initiatives
Assisting Community Center with Cleanups

We will reduce environmental impact, notably by cutting waste andSince 1994, we have voluntarily participated cleanup efforts with themaintaining and improving the local area. We will additionally engage more

local community center as part of environment month initiatives in thewith the community.

spring and autumn.

Fiscal 2009 Initiatives
Holding Plant Tours
As well as participating in community cleanups, the Omuta Daijyayama

We will combat global warming by switching to low-carbon fuels.

The community and businesses unite in these activities.

summer festival and blood donation drives, we aim to conduct plant tours

We will maintain product safety and enhance and stabilize production

We will continue to participate in these initiatives to foster

for local residents to deepen their understanding of the facility and what

processes to meet customer needs.

prosperity with the community.

we make.

As part of winter traffic safety initiatives, we created a petition to eradicate
drink-driving and submitted the document with the signatures of 1,506

40

41

Site Report2

Chiba Plant

Site Report 2009

ProfileAddress

Operations

Site Report 2009

ProfileAddress
Telephone
Employees
Major Products

6, Goi-Minamikaigan, Ichihara City, Chiba
Bibai Subplant: 1-1 Higashi-Gojo-kita, 10-chome, Bibai City, Hokkaido+81-436-26-3200
455 (at March 31, 2009)
Organic materials: Styrene monomers, polystyrene, ABS resin,transparent resins, heat resistance resins, CLEAREN styrene-butadiene
block copolymer, vinyl acetate monomer and DENKA ER.
Plastic products: Food packaging, construction materials and vinyl tapeThis facility is one of Japan’s top styrene monomer plants, and isreinforcing such styrene operations as polystyrene and ABS resins. It
also manufactures such plastic products as transparent plastic and
CLEAREN and such petrochemicals offerings as DENKA ER.

Operations

CSR Policies

General Manager Policies

General Manager Policies

We will pursue core initiatives under DENKA100 and make this year the start for strengthening the plant and driving
dramatic growth.
1. Maintain safe and stable operations by refining security management technologies. We will enhance employee
awareness, knowledge and skills to attain a zero-accident record.
2. We will overhaul our business strategy to create and cultivate products that drive growth.
3. We will enhance technological and workplace capabilities to boost productivity, quality and cost competitiveness.
4. We will foster human resources as our foundation by providing training and passing on technologies.
5. We will fulfill our corporate social responsibilities and strive to reduce environmental impact.

Our KIT-09 goals for preparing for the next medium-term plan are to pursue sound production technologies andaccelerate efforts to accomplish tasks.
1. Undertake safety activities focused on risk management.
2. Reach technological goals of major advancement initiative and accelerate product launches.
Shotaro Fujii
Executive Officer
General Manager of Chiba Plant

Environmental, Safety and Quality Policies＜Environment＞＜Safety＞＜Quality＞

Chiba, Shibukawa

CSR Policies

1135 Nakamura, Shibukawa City, Gunma+81- 279-25-2109
246 (at March 31, 2009)
Electronic materials : DENKA HITTPLATE high thermal-conductivity aluminum
substrates, Thermally conductive materials, HARDLOC and HARDLOC
OP/UV adhesives, DENKA LaB6 CATHODE electron and ion emitters,
ELEGRIP dicing tape,back grinding tapeThis Plant started operations in 1951 to produce general-purpose chemical
products. From 1976, it started making fine chemical products, such as
structual adhesives and electronic materials. In 2005, it completed a facility
for electronic materials to enter the highly promising electronics field. Our
expertise with raw materials technology has enabled us to create diverse
electronic raw materials that have won solid reputations for helping toconserve energy and reduce environmental impact.

Site Report

Telephone
Employees
Major Products

Shibukawa Plant

We will consider the environment in all processes, from product development, manufacturing and distribution to usage, final
consumption and disposal. We will build an environmental management system.
We want all plant workers to recognize the importance of maintaining a safe and healthy workplace. We will create aoccupational safety and health management system and achieve a zero-accident rate.
We will consistently provide products that satisfy customers and swiftly reflect their needs.

3. Strengthen on-site capabilities through techno-school.
Haruo Kimura
Executive Officer
General Manager of Shibukawa Plant

Environmental, Safety and Quality Policies＜Environment＞ We will operate in harmony with the community by protecting the environment and ensuring safety. We are endeavoring tosustainably reduce environmental impact by cutting discharges of hazardous chemicals and waste while conserving energy.
＜ S a f e t y ＞ We will review hazard source measures from the human error standpoint. We will also ensure safe plant operations by
predicting risks based on review measures and reinforce employee education.
＜ Q u a l i t y ＞ We will continue to ensure the timely provision of products that satisfy customers, plan products with consideration for theenvironment, safety and health, and improve processes.

Fiscal 2008 Achievements and Fiscal 2009 Initiatives
１）Security and Disaster Prevention

We collaborated with the Ichihara-city Fire Department and the Goi Joint
Disaster Prevention Council in a disaster drill for the area of Ichihara-city
Special Disaster-Prevention District in Petroleum Industrial Complexes andother Petroleum Facilities to which 55 local companies belong.
We participated in an early fire extinguishing competition with equipmentfrom the Ichihara Fire Prevention Association, with female employees
winning in their category.
We arranged a lecture on forecasting earthquake damage for hazardous
equipment by the Institute for Fire Safety & Disaster Preparedness. The
lecture covered ideas on the possible extent of disasters based on
prevention assessments for industrial complexes in line with the guidelinesof the Fire and Disaster Management Agency.

２）Occupational Safety

We completed a switch to the fiscal 2007 version of OHSAS18001. We
are undertaking efficient safety activities through our system.
We promoted worker health and communications and arranged mental
health lecture presentations by industrial physicians.

３）Community Engagement

We participated as a corporate panelist in a community convention on therisks of chemical substances at Eco Fair Ichihara in environment month.

42

During that month, we conducted a plant tour for local elementary school
students, presenting our environmental initiatives and showing our
production facilities. We helped clean up the median strip on National Route16 in front of the plant.

４）Social Contributions

We received recognition from the Ministry of theEnvironment for voluntary efforts to reduce emissions ofvolatile organic compounds in the Fiscal 2008
Commendations for Contributions Towards Measures
Against Volatile Organic Compounds.
During the traffic safety week, we instructedemployees about the issues and participated in a seatbelt campaign incooperation with local police stations and corporations.

Fiscal 2009 Initiatives

In fiscal 2009, we will renew our commitment to CSR. We will makeefficient use of our ISO 9001, ISO 14001 and OHSAS 18001 systems
to enhance quality, the environment and occupational safety and health,and tackle new challenges. We will collaborate with government bodies
and other companies to maintain security and prevent disasters at our
industrial complex. We will engage more with the community and takesteps to build trust.

Fiscal 2008 Achievements and Fiscal 2009 Initiatives
Community Engagement

Reduce Final Disposal Volumes

The Belly Button Festival was held in

To achieve zero emissions, we reduced waste through yield

Shibukawa on July 25 and 26, 2008. People

improvements and recycling, by cutting packaging, and by more

danced around the city with funny drawings on

thoroughly separating paper waste.

their bellies, much to the mirth of onlookers.
Many employees from the plant participated in

Fiscal 2009 Initiatives

this event.

We aim to deepen community understanding of the Company andcontribute to society by conducting plant tours and chemistry classes for

Evening On-Call Drill

elementary students. These efforts will complement ongoing programs,

On March 25, 2009, we held an evening on-callsuch as the pruning and weeding of hydrangeas, cleaning the Nakamura

fire drill through an emergency telephone tree.

water channel and participating in the Belly Button Festival.

During the effort, we contacted our in-house

On the environmental front, we will continue to lower

fi r e - fi g h t i n g t e a m , t h e S h i b u k a w a F i r eemissions of hazardous chemicals and conserve energy. We will lower

Department and assistants from eachwaste by recycling paper and better separating waste, thereby attaining

department to request help at the site. Aroundzero emissions at the plant.

30 minutes after the drill started, approximately
130 people gathered at the plant.

43

Site Report

3

Ofuna Plant

Site Report 2009

13-1, Dai 2-chome, Kamakura-city, Kanagawa+81- 467-45-1110
211 (at March 31, 2009)
Resins and plastic products: Including synthetic fibers for wigs, packaging
materials, and functional films
Our product lineup is the fruit of advanced capabilities drawing onejection molding, adhesion coating and film production technologies. We
are DENKA’ s prime production unit for plastic products. We develop andmanufacture such offerings as TOYOKALON synthetic fiber for top global
wig and hairpiece brands, packaging tapes that include hand-cuttableand printing tapes, laterally stretched Calalyan Y polyethylene film andpolyvinylidene fluoride DX Film.

Address

Employees
Major Products

Operations

Isesaki Plant: 245, Nishigawara, Naganuma-cho, Isesaki City, Gunma
Telephone: +81- 276-52-4111
Ota Facility: 3015 Serada-cho, Ota City, Gunma
253 (at March 31, 2009)
Electronic packaging materials: DENKA THERMOSHEET EC, Thermo
Film ALS and other carrier tape, trays and cover tape for semiconductor
and electronic components processes
Food packaging materials : Styrene Sheet, CLEAREN Sheet, and stretch film
This plant manufactures sheets and films from polystyrene, vinyl chloride
and other raw materials. The Ota facility has the greatest production
capacity in the Orient for these products. We supply food and electronic
packaging materials that meet stringent requirements for performanceand quality management, and are endeavoring to bolster our processing
technologies while developing value-added offerings.

Site Report

Operations

Site Report 2009

ProfileProfileAddress
Telephone
Employees
Major Products

Isesaki Plant

Ofuna, Isesaki

CSR Policies
General Manager Policies
Philosophy：We aim to contribute to and prosper with the community of Kamakura, which abounds with
cultural, historical and environmental legacies.
Goals：We will contribute to the community and corporate progress by making the environment, safety andquality our top priorities.
1. Reduce our environmental footprint by conserving energy and cutting waste.
2. Undertake locally suitable initiatives to build a healthy and dynamic workplace.
3. Comprehensively manage safety relating to raw materials, products, logistics and disposal and continue toengage with the community.

CSR Policies
General Manager Policies
1.Ensure safety and health.
2.Pursuing ongoing efforts to reach DENKA100 objectives.
3.Improve customer satisfaction.
4.Create products that match changes in the social climate.
5.Reach KIT09 goals.

Environmental, Safety, and Quality Policies

Environmental, Safety and Quality Policies＜Environment＞ 1. Comply with laws and ordinances and enhance environmental awareness
Hideo Oishi
2. Act in line with medium-term environmental plan and improve performance
Executive Officer
General Manager of Ofuna Plant
3. Contribute to the community＜ S a f e t y ＞ 1. Deploy full-fledged initiatives that ensure underlying safety
2. Undertake efforts that reflect local circumstances
3. Create a vibrant and healthy workplace＜ Q u a l i t y ＞ Continue to improve raw materials, processes and product management to pursue and maintain high quality＜ S a f e t y ＞ 1. Ensure that no major explosions or fires occur
2. Eliminate occupational accidents

Nobuyoshi Sakuma
Senior Executive Officer
General Manager of Isesaki Plant

3.Eliminate new occupational illnesses＜Environment＞ Conserve energy and resources and minimize environmental footprint＜ Q u a l i t y ＞ Improve quality and swiftly and accurately meet customer needs.

Fiscal 2008 Achievements and Fiscal 2009 Initiatives
Fiscal 2008 Achievements and Fiscal 2009 Initiatives
We conducted fire drills and evening on-call drills.

Fiscal 2009 Initiatives

We held a Group Safety Announcement Meeting to raise safety

In April 2009, the plant launched a productivity enhancement campaign

consciousness.
We installed automated external defibrillators and conducted first-aid

established six working groups in which all employees participate. One

drills for at least half of the plant personnel,

group prioritizes address the plantʼs weaknesses to boost production

registering with the Kamakura First Aid

yields. Others aim to raise quality, enhance maintenance, pursue 5S

Office.

gains (sorting out, systematic arrangement, cleanliness, standardizing

We held a mental health seminar anddeepened understanding of psychologicaland physical health management.
We conducted complete cleanups of the plant and nearby streets on
the third Wednesday of each month.
We made plant grounds available to the Fujimicho Town Associationon the day of the Summer Festival (see page 18 of this report).

44

to seize new opportunities from the prevailing economic crisis. We

and self-discipline ), conserve energy and production management.
These initiatives ultimately aim to benefit all stakeholders.

Security and Disaster Preparedness

this initiative beyond our facilities to

We hold annual disaster drills at the Isesaki

encompass the neighboring public park andPlant and Ota facility.

streets.

Experiential Training
We conduct ongoing experiential training for

Fiscal 2009 Initiatives

frontline workers. The plant handles numerous

The plant complies strictly with laws and ordinances and acts torolls, so we have provided experiential

safeguard the environment. We have already secured ISO 14001

simulations of what happens when a person iscertification for environmental management systems, and are now

caught in them. There are a lot of cutting

focusing on cutting waste and conserving resources and energy. We areprocesses, so we have workers practice slice

endeavoring to boost raw material yields to reduce waste. We willoff cut-resistant gloves and drill in the correct

continue to contribute to the community through our cleanup efforts.

use of cutters.

We strive to prevent occupational accidents and facilities
mishaps and are pushing ahead with measures to combat lifestyleSocial Contributions
The plant implements a monthly cleanup day, and we have expanded

diseases as part of endeavors to create a vibrant and comfortableworkplace.

45

Site Report 4

Overseas

Denka Singapore Pte., Ltd.

Denka Singapore Private Limited
Hong Leong Building, 16 Raffles Quay #18-03, Singapore048581
TEL：65（6224）1305

Merbau Plant

Site Report 2009

Denka Advantech Private Limited
Hong Leong Building, 16 Raffles Quay #18-03,
Singapore 048581
TEL：65（6224）1305

DENKA Advantech Pte., Ltd.
Tuas Plant

Site Report 2009

ProfileProfile33 (at March 31, 2009)

Employees

70 (at March 31, 2009)

Operations

The Merbau Plant was DENKA’s first production facility in Singapore. We established thisplant in 1980 to participate in the Singapore Petrochemicals Complex project. The complex islocated on Jurong Island, where we manufacture DENKA BLACK. We began operating our
50% press facility in 1984, upgrading it in 1997. We set up a granulation facility in 2002. The
superior liquid absorption and electrical and thermal conductivity properties and high purity of
our offerings have enabled us to export them worldwide for use in dry manganese andlithium-ion batteries and in power cables and semiconductor packaging materials.

Operations

We launched this plant in 1991. It was Singapore’s first fused silica filler facility forsemiconductor packaging. To accommodate advances in semiconductor packaging, webegan manufacturing spherical fused silica fillers in 1997. We boosted capacity in 2000 and2006 to produce environmentally friendly packaging. We maintain stable supplies toSoutheast Asia, China, Taiwan and elsewhere in East Asia. We rank alongside DENKA’ s
Omuta Plant as the world’ s top producers of spherical fused silica fillers.

CSR Policies

CSR Policies

General Manager Policies

General Manager Policies･ Maintain zero-accident record･ Swiftly accommodate customer requirements

Seraya Plant

Site Report 2009

Denka Advanced Materials (Suzhou) Co., Ltd.

Toshiyuki Abe
General Manager of Tuas Plant

Unit 9B Modern Industrial Square,No.333 XingpuRoad, Suzhou Industrial Park, Suzhou China
TEL：+86-512-6287-1088

Denka Advanced Materials (Suzhou) Co., Ltd.

Site Report 2009

ProfileProfileOperations

1. Ensure security and safety to keep our zero-accident record and maintain strict compliance
2. Boost the capacity of existing facilities, innovate unique technologies and cut costs toraise profitability.
3. Reduce electroconductive impurities, thus accommodating market needs, increasing
customer satisfaction and expanding sales.

60 (at March 31, 2009)This plant began polystyrene production at Seraya, Jurong Island, in 1998. Its three
production facilities make high-molecular general-purpose polystyrene from a massive
continuous polymerization line, methyl methacrylate styrene copolymer resin, and CLEAREN
styrene-butadiene block copolymer. Our annual production capacity is 300,000 metric tons.
The plant boasts the world’s largest capacity in styrene resins. We aim to optimize ourfacilities, personnel and logistics, and have built a structure to minimize costs and enable
personnel to maintain operational efficiency.

Employees

50 (at March 31, 2009)

Operations

DENKA established this company in January 2006 as its first production and sales subsidiaryin China since World War II. This company manufactures carrier tape for electronic packaging
and micro-slit products.

CSR Policies
CSR Policies

General Manager Policies

General Manager Policies

Maintain our zero-accident record and improve quality by enhancing our operations.

‘‘ Establish Healthy Condition’’— Maintain a healthy plant‘‘ Construction of factory being’’— Construct productive facilities
1. Maintain zero-accident record and employ safety management system.
2. Ensure legal compliance.
3. Create a better working environment by strengthening administrative systems (for security, logistics, materials orders,and quality), strengthening adherence to rules,encouraging two-way communication, and pursuing our 5S program.
4. Continue to enhance our safe production technologies, deliver the quality that customers seek and renew ourISO 9001 and ISO 14001 certifications.
5. Educate employees in plant technologies and in building our maintenance system.

Fiscal 2008 Activities＜Using Resources Efficiently ＞
We sold waste oil to a reused fuelproduction company.

46

1. Bolster safety initiatives to maintain our zero-accident record.
2. Improve production techniques and quality management to increase customer satisfaction.
3. Maintain the workplace environment and ensure strict compliance.
4. Undertake education and drills to build a vibrant workplace.
Kazuya Tokumoto
Deputy Managing Director
General Manager of Seraya Plant

Fiscal 2009 Initiatives

Yuichi Kadoya
Deputy Director
General Manager

Environmental and Safety Efforts
Fiscal 2008 Achievements and Fiscal 2009 Initiatives

We aim to enhance yields from polystyrene, methyl methacrylate styrene and CLEAREN.
We also aim to use waste plant oil as fuel.

＜Environmental Initiatives＞ ･ We employed resources more efficiently by increasing production yields.
＜Safety Initiatives＞ ･ We recorded zero accidents.
･ We started a program of chanting safety slogans at daily morning gatherings.

We will bolster basic education and enhance employee capabilities by improving education in chemicals,
processes and equipment.

In fiscal 2009, we will gather and manage SGS data—analytical data on the environmental impact of materials contained in our products—forenvironmental purposes and conduct regular patrols to enhance safety in hazardous areas.

＜Using Resources Efficiently ＞＜Safety Initiatives＞

47

Singapore, China

Fiscal 2008 Achievements and Fiscal 2009 Initiatives
Yoshiteru Yamazaki＜Environment＞ ･ Prevent pollution (maintain water quality)
General Manager of Merbau Plant･ Manage (reduce) wastes＜ S a f e t y ＞ ･ Assess and improve manual processes･ Undertake educational efforts:
ー We received commendation from the U.S. Chemical Safety and Hazard Investigation Board for our video analyzing accident cases
ー We are deploying a safety activities campaign

Employees

Site Report

Employees

Site Report

5

R&D

Central Research Institute

Site Report 2009

ProfileSite Report 2009

ProfileAddress
Telephone
Employees

5-1, Asahi-cho 3-chome, Machida City, Tokyo+81- 42-721-3611
80 (at March 31, 2009)
Central Research Institute began operating at its current site after DENKA
relocated its Meguro Research Center there in 1962. The facility has
created numerous basic technologies for inorganic and organic chemicals,
petrochemicals and plastic products as the spearhead of DENKA’ s productinnovation. The center will continue exploring medium- and long-term R&D
and help enhance the quality of existing offerings.

Nakamura 1135, Shibukawa City, Gunma+81-279-25-2477
93 (at March 31, 2009)

Research
Developing highly functional electronic materials through organic and inorganic hybridization.
Focus
General Manager 1. Explore topics with existing products based on selectivity and concentration and undertake
Policies
customer-specific research themes
2. Build production technologies that factor in high functionality and quality and cost-competitiveness3. Create basic and component technologies that harness the mechanisms of physicalproperties and clarify reaction schemes

Site Report

Address
Telephone
Employees
CenterOverview

Electronic Materials InstituteFiscal 2008 Achievements and Fiscal 2009 Initiatives

General Manager Policies
The institute is continuing to underpin DENKAʼ s progress as a manufacturer by:
1. Developing new products
2. Exploring growth areas
3. Strengthening collaboration with external organizations
4.Undertaking environmental and safety initiatives

Clean rooms and automated equipment

Electric Materials Research Center and the Polymer Processing

are essentials in developing electronic materials,

Research Center . The facility pursues R&D into high-performancefor which the tolerance for impurities is no more

electronic materials that are environmentally friendly. In fiscal 2008, thethan one-fiftieth the thickness of a human hair.

center worked on heat dispersion measures that are vital for LEDs,

These facilities require a lot of electricity. We arewhich offer so much promise in reducing carbon dioxide emissions andthus installing state-of-the-art equipment whileeliminating the use of mercury in lighting. Numerous LED productmodifying operations to reduce power consumption.

makers have adopted these technologies.

We are switching away from paper to electronic

In fiscal 2009, we are developing process adhesives that are
crucial for manufacturing solar cells. We have succeeded in slashing the
Shigetoshi Toyooka
Director, Managing Executive Officer
General Manager of Central Research InstituteR&D

CSR Policies

The center is the fruit of the October 2008 integration of the Functional

Norihiro Shimizu
Executive Officer
documents as part of efforts to cut carbon dioxide General Manager of Electronic
Materials Instituteemissions from our R&D activities.

organic solvent and carbon dioxide emissions from such production. We

We will continue R&D into environmentally

have gained considerable attention for the environmental friendliness offriendly and safe products while pursuing low-carbon

these adhesives, which should also help to slash the prices of solar cells.

research.

Environmental, Safety, and Quality Policies
We have deployed site-specific voluntary initiatives to ensure safety and health in keepingwith Companywide policies. We undertake activities to ensure that each employee understands, can predict and handle hazards. We pursue change management to accommodate
the diverse operations of research operations and enhance safety awareness and security
skills. We prioritize mental health as part of efforts to build vibrant workplaces. We are also
conducting R&D into environmental management systems activities.

Polymer Technology Institute

Site Report 2009

ProfileAddress
6, Goi-Minamikaigan, Ichihara City, Chiba
Telephone+81- 436-26-3220
Employees 136 (at March 31, 2009)
Research
Functional resins, plastic materials and elastomers
Focus
General Manager We are harnessing polymer synthesis, processing and analytical technologies in our three
Policies
main areas for R&D into existing and new products that can help DENKA to generate
sustainable revenues and earnings.

Fiscal 2008 Achievements and Fiscal 2009 Initiatives
During the year under review, we undertook activities to maintain ourenvironmental management systems and to enhance safety consciousness.
Safety initiatives included a disaster drill that we conducted with

Fiscal 2008 Achievements and Fiscal 2009 Initiatives

collaboration from the Machida Fire Station. In June 2008, we sponsored astudy seminar at its premises for nine hazardous substance training
associations in metropolitan Tokyo, attracting around 70 participants. The

This center was established on April 1, 2009, at DENKAʼs largest generalproducts, such as weather-resistant films for solar

center also strengthened community ties by distributing its journal to local

research facility. We aim to help the Company to achieve sustainablegeneration systems.

residents.

Environmental management systems
maintenance assessment

Hazardous substance study seminar

Fiscal 2009 Initiatives

revenues and earnings by tackling diverse technical issues and creating

Our R&D in elastomers focuses ontechnologies and products that lower environmental impact, conserve

cultivating markets for chloroprene rubber, with whichenergy, and contribute to safety and health.

we use proprietary manufacturing techniques that do

We will step up environmental management system efforts and bolster experiential education in safety issues,

R&D in functional resins focuses on styrene and acetate

not rely on oil, as well as acrylic ER rubber, which

conducting drills for fires and power outages. As part of efforts to deepen community ties, in June and August 2009,

polymers. Styrene polymers offer less deformation from moisture absorption

offers outstanding thermal performance. Our

respectively, we held childrenʼs chemistry classes for members of the Machida Youth Firefighters and students fromthan acrylic resins, and we are positioning them for use with LED lighting.

chloroprene rubber incorporates water-based

the No. 4 Machida Elementary School.
Children’s chemistry class

In plastic materials, our efforts focus on making existingadhesives instead of the organic ones that can cause

products lighter and thinner, with reduced solvents. These offerings include

illness in new buildings. We are working withfood packaging materials, industrial adhesive tape, construction materials

customers to expand sales of this rubber.

Tatsuhiro Aoyagi
Executive Officer
General Manager ofPolymer Technology
Instituteand pipes used in agriculture and engineering. We are also developing new48

49

Site Report

6

Major Affiliates
DENKA Polymer Co., Ltd.
ProfileAddress
Telephone

Profilehttp://denkapolymer.co.jp
Head Office: 12-8 Kiba, 5-chome, Koto-ku, Tokyo+81- 3-5245-3641
Plants: 3 in Chiba Prefecture (Sakura, Goi, Katori)
354 full-time and 160 part-time (at April 1, 2009)
OPS products, PSP food trays, food containers, SOFLIGHT products,
packaging wrap and agricultural packs

Major Activities and Achievements in Fiscal 2008
We pursued weight reductions in all products so our containers canalleviate environmental impact and conserve resources and energy. For
example, we drew on our Group strengths as an integrated
manufacturer of everything from monomers to finished products toinnovate SOFLIGHT. This product is a next generation, lightweight andCRK Corporation
Address
Telephone
Employees
Major Products

Kenichi Ono
President

Site Report 2009http://www.crk.co.jp
306-banchi, Koyagi-cho, Takasaki City, Gunma+81-27-362-7510
68 (at April 1, 2009)
Rubber compounds, industrial rubber products, fire-resistant rubber
products, butyl adhesive tape, water swelling leakage stop rubber tape andquakeproof manhole joints
Koji Saito
President

Major Activities and Achievements in Fiscal 2008transparent raw material that overcomes the vulnerability of OPS to
cracks because it is both rigid and supple. Another benefit is that
SOFLIGHT is around 40% lighter than A-PET and saves resources (seepage 12 of this report).

・ Environmental Activities
We took steps to prevent source waste emissions by preventing
defects and enhancing yields. Production volumes were down
during the year and overall wastes declined 37%.
・Safety Activities
Members of the Safety and Health Committee conducted monthly

workplace patrols and identified hazards.
・Community Engagement
We focused on participating in community events in the industrial
park.

ProfileAddress
Telephone
Employees
Major Products

Site Report 2009

Head Office: 4-2 Kayaba-cho, 3-chome, Nihonbashi, Chuo-ku, Tokyo+81- 3 - 3669-9091
Plants: Gosen City, Niigata (Niigata Plant, Kagamida Plant)
514 (at April 1, 2009)
Influenza vaccines, virological diagnostic reagents, bacteriologicaldiagnostic reagents, immunological diagnostic reagents, clinical chemistry
diagnostic reagents and general biological diagnostic reagents

Major Activities and Achievements in Fiscal 2008

2. Community Activities･ Sponsorships included a ¥500,000 donation to the National Sports
Festival in Niigata.
･ We held a lecture on the new strain of influenza in January 2009 at theGosen Municipal Office･ We participated in the activities of the Gosen Gender Equality Council.
･ We were involved in the Gosen Water Service Committee.

Fiscal 2009 Initiatives
We will undertake the following Group CSR efforts.
①Disaster Preparedness and Worker Safety･ We plan to invite a representative of the Labor Standards Association tolecture managers.

50

http://www.hinode-kagaku.co.jp

Address
Telephone
Employees
Major Products

660 Aza Kuratani, Maizuru City, Kyoto+81-773-75-5760
48 (at April 1, 2009)
YORIN (fused magnesium phosphate) and TORETARO (fused silicate
phosphate fertilizer)･ We complied with environmental legislation and prevented
accidents and disasters by boosting employee awareness througheducation and training programs.
･ We conserved energy and resources and reduced discharges.
･ We participated in community environmental activities.

Achievements

We took part in cleanups.

Tatsuya Machino
President

Community Engagement･ The Society for Maizuruʼ s Waterways and Sea visited our site aspart of its patrols of businesses.
･ We participated in the Maizuru Clean Campaign.

Masataro Satsuka
President

1. Safety Initiatives･ The Safety and Health Committee conducted monthly safety patrols.
･ We distributed an array of safety and health reference materials to employees.
･ We commissioned a lecturer from M-Net Corporation to hold an in-house
lecture in August 2008 on the terrors of fires and explosions.
･ We arranged an in-house lecture in November by the Traffic Safety
Section of the Gosen Police Station on activities to prevent traffic
accidents and predict traffic dangers.

Site Report 2009

ProfileMajor Activities and Achievements in Fiscal 2008

http://www.denka-seiken.co.jp

Major Affiliates

Hinode Kagaku Kogyo

DENKA SEIKEN Co., Ltd.

Site Report

Employees
Major Products

Site Report 2009

･ We will offer a class on chemical substance regulations compliance.

②Community Engagement･ We will exchange information with the Niigata Prefecture Industrial
Siting Section about locally-based collaboration with academic andpublic organizations.
･ We will strengthen relations and communications with the Gosen
Municipal Office･ We will support and donate to the Yokomachi Summer Festival, theKinaseya Festival and other summer fetes around our plants.

③Community Contributions･ We will remain involved with the Gosen Gender Equality Council.
･ We will continue to serve on the Gosen Water Service Committee.

④Employee Welfare Efforts･ We will sponsor labor union activities, notably barbeque, soft-volleyballand bowling events.

DENKA Azumin Co., Ltd.

Site Report 2009

ProfileAddress
Telephone
Employees
Major Products

118, 5 Chiwari, Nimai-bashi, Hanamaki City, Iwate+81-198-26-2131
26 (at April 1, 2009)
Azumin (magnesium humate fertilizer)

Major Activities and Achievements in Fiscal 2008
1. We maintained our zero-accident record through workplace andcommittee drills on accident prediction. As of March 31, 2009, we had
posted 1,461 accident-free days.
2. We reported that all air, water and noise pollution from our facility
were within the limits of an accord with Hanamaki City.
3. We built and maintained trust with the community and collaborative
ties with local residents.
4. We explained to plant visitors from agricultural cooperatives that
Azumin, whose principle component is natural lignite, prevents
fertilizers components from leaking and is environmentally friendly.

Masahiko Yamamoto
President

Fiscal 2009 Initiatives
1. We will maintain our zero-accident record.
2. We will pass our manufacturing technologies to younger workers andundertake safety initiatives.
3. We will safeguard the environment and build and maintain community
trust.

51

Consolidated Financial Statements

Consolidated Balance Sheets (Summary)Millions of Yen

AmountAccount item

As of March
31, 2009

As of March
31, 2008

AssetsCurrent assets

Notes and accounts receivable,
trade
Inventories
Other current assets
Allowance for doubtful accounts
Non-current assets
Property, plant and equipment
Intangible fixed assets

6,126

3,212

55,396
48,973
12,618(253)

71,03747,575
12,679(221)
241,080

202,310

185,683

4,956

2,240

Investment securities

34,036

41,175

Other

14,035

12,152

(288)

(171)

377,912375,364

Allowance for doubtful accounts
Total assets

Account item

As of March
31, 2009

As of March
31, 2008

137,034

161,319

Millions of Yen

27,24653,554

Short-term bank loans

49,73048,632

Commercial paper

11,0005,000

Current portion of corporate bonds

10,00010,000

Other current liabilities

39,057

44,132

90,73452,173Long-term liabilities

AmountFiscal 2009

Fiscal 2008

334,130

363,996

Cost of sales

271,590

283,833

Selling, general andadministrative expenses

52,23750,25010,302

29,912Non-operating income

1,968

2,328

Non-operating expense

9,176

7,321

3,094

24,918Extraordinary gains―

77

Extraordinary losses

1,132

7,883

1,961

17,112

1,322

7,669

(787)

2,360

(13)

423

1,439

6,660

Account item
Net sales

Notes and accounts payable, trade

Corporate bonds

20,00020,000Long-term debt

45,034

8,696

Other long-term liabilities

25,70023,477

227,769

213,493

Total liabilities
255,049

Millions of Yen

Operating income

Ordinary income

Income before income taxes

Net Assets
Shareholders equity

139,186

138,176

Income taxes - current

Common stock

36,99836,998

Income taxes -deferred

Capital surplus

49,303

41,576

Retained earnings

56,58160,286

Minority interest in earningsof consolidated subsidiaries

Treasury stock, at cost

(3,697)(684)

Valuation and translation adjustment

8,414

17,845

Minority interests

2,542

5,848

Total net assets

150,142

161,870

Total liabilities and net assets

377,912375,364

Net income

AmountAccount item

Fiscal 2009

Fiscal 2008

Net cash provided byoperating activities

5,794

22,944

Net cash used ininvesting activities(33,876)(21,668)

Net cash used infinancing activities

31,096(1,815)

Effect of exchange rate changes
on cash and cash equivalents

(71)

(139)

Net increase (decrease) in cash
and cash equivalents

2,942

(678)

Cash and cash equivalents atthe beginning of the year

3,162

3,841

Increase of cash and cash equivalents
resulting from inclusion and exclusionof subsidiaries from consolidation

(27)

―

6,077

3,162

Cash and cash equivalents
at the end of the year

Consolidated Financial Statements

Cash and time deposits

AmountCurrent liabilities
134,284

Consolidated Statements of Cash Flows (Summary)Millions of Yen

Liabilities and Net Assets
122,862

Consolidated Statements of Income (Summary)

Consolidated Statements of Shareholders Equity for Fiscal 2008 (April 1, 2008, to March 31, 2009)
Millions of Yen

Shareholders equity

Balance at March 31, 2008

Commonstock

CapitalsurplusRetainedearnings

36,99841,57660,286

Valuation and translation adjustments

Foreign
Total
Minority
Treasury
Total
Unrealized Revaluation
currency
valuationinterests
stock
shareholders gain on
reservetranslation and translation
at costequitysecurities
for landadjustments adjustments(684)

138,176

7,194

11,163(512)

17,845

5,848

Total net
assets161,870

Changes of items
during the term
Issue of new shares
Dividends from retained earnings
Net income

7,738

―

7,738

(4,974)(4,974)―(4,974)

1,439

1,439

―

1,439

(3,127)(3,127)―(3,127)

114

103

―

103

7,738

Net increase in treasury stock
Gain on sales of treasury stock(10)

Change in scope of consolidation

(171)

(171)

―

(171)

Reversal of revaluation reserve for land

1

1

―

1

Net changes of items otherthan shareholders equity
Total changes of items during the term
Balance at March 31, 2009

52―

(4,879)(3,553)(998)(9,431)(3,306)(12,737)―

7,727(3,704)(3,013)

1,009(4,879)(3,553)(998)(9,431)(3,306)(11,727)

36,99849,30356,581(3,697)

139,186

2,314

7,610

(1,510)

8,414

2,542

150,14253

Corporate Data

Corporate Data (as of March 31, 2009)

Board of Directors (as of June 23, 2009)

Established: May 1,1915

Implementing Third-Party Audits

Directors, Corporate Auditors and Executive Officers

Paid-in capital: ￥36,998,436,962
Number of
employees: 4,783 (consolidated) and 2,773 (non-consolidated)

Higashi Ito

President and Representative Director,
Chief Executive Officer
Representative Director,Executive Vice President,
Chief Operating Officer

Koji Minai

Representative Director,
Senior Managing Executive Officer

Takashi Toratani
Shigetoshi Toyooka
Tetsuro Maeda
Shinsuke Yoshitaka
Mamoru Hoshi
Kozo Tanaka
Tadasu Horikoshi
Nobuyoshi Sakuma
Hitoshi Watanabe
Kenichi Ono
Daiichiro Uematsu
Haruo Kimura
Hideo Oishi
Tatsuhiro Aoyagi
Mitsukuni Ayabe
Shotaro Fujii
Shinji Sugiyama
Shigeru Matsumoto
Shohei Tamaki
Hideyuki Udagawa
Norihiro Shimizu
Manabu Yamamoto
Yukinori Totake
Takayasu Tanaka
Kenichi Tsuchigame
Toshiaki Tada

Director, Managing Executive Officer

Seiki Kawabata

Directory● Head Office:● Branches

Osaka, Nagoya, Fukuoka, Niigata, Hokuriku (Toyama),
Sapporo and Tohoku (Sendai)● Sales Offices

Nagano, Takasaki (Gunma)
Hiroshima, Takamatsu, Akita, Ageo (Saitama) and Taipei (Taiwan)● Plants

Omi (Niigata), Omuta (Fukuoka)
Chiba, Shibukawa (Gunma)
Ofuna (Kanagawa) and Isesaki (Gunma)● Research Institutes

Central Research Institute (Tokyo)
Electronic Materials Institute
Polymer Technology InstituteOverseas Subsidiaries
New York, Dusseldorf, Singapore, Shanghai
Suzhou and Hong Kong

Director, Managing Executive Officer
Director, Managing Executive Officer

Corporate Data／Implementing Third-Party Audits／Editorial Afterword

Nihonbashi Mitsui Tower, 1-1, Nihonbashi Muromachi,
2-chome, Chuo-ku, Tokyo 103-8338, Japan
Tel: +81- 3 - 5290 - 5055

Director, Senior Executive Officer
Director, Senior Executive Officer
Outside Director
Outside Director
Senior Executive Officer
Senior Executive Officer
Senior Executive Officer
Senior Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Standing Corporate Auditor
Outside Standing Corporate Auditor
Corporate Auditor
Outside Corporate Auditor

Shareholder Information (as of March 31, 2009)● Total number of authorized shares● Shares of common stock issued● Number of shareholders● Major Shareholders

1,584,070,000
51,351

Percentage ofshares held (%)

Japan Trustee Service Bank, Ltd. (Trust Account)

46,4699.18

Japan Trustee Service Bank, Ltd. (Trust Account 4G)

35,631

7.04

The Master Trust Bank of Japan, Ltd. (Trust Account)

24,955

4.93

National Mutual Insurance Federation of Agricultural Cooperatives

15,965

3.15

Trust & Custody Services Bank, Ltd., as trustee forMizuho Bank Ltd. Retirement Benefit Trust Accountre-entrusted by Mizuho Trust and Banking Co., Ltd.

15,275

3.01

DENKI KAGAKU KOGYO KABUSHIKI KAISHA

14,6792.90

Mitsui Life Insurance, Co., Ltd.

13,9082.74

Mitsui Sumitomo Insurance Co., Ltd.

6,916

1.36

Japan Trustee Service Bank, Ltd. (Trust Account 4)

6,914

1.36

Trust & Custody Services Bank, Ltd. (Securities Investment Account)

6,608

1.30

Citibank Hong Kong S/A Fund 115

5,698

1.12

Editorial Afterword

Securities Companies
Foreign Corporations
and Individuals

7,592（ 1.50％）

105,699（20.89％）
Number ofshares held
(thousands)

54● Shareholder Composition (Thousand shares)

505,818,645

Other Domestic Corporations
31,317（ 6.19％）

Financial Institutions
219,010（43.29％）

Individuals and others
142,199（28.11％）● Shareholder Composition by Number of Shares Held (persons)
10,000 shares or more
3,105（ 6.04％）
Less than 1,000 shares
13,695（26.66％）

1,000 to 4,999 shares
30,463（59.32％）

5,000 to 9,999 shares
4,088（ 7.96％）

Thank you for reading the CSR Report 2009.
In fiscal 2008, we stepped up our commitment to a cleaner future, particularly through lower
carbon dioxide emissions, by establishing the Environmental Burdens Reduction Promoting Department.
We will constantly review our Responsible Care efforts that have been a key focus for us as a manufacturer of chemical products, while continuing to fulfill our responsibilities as a corporate citizen by making
steady progress in safeguarding the environment.
This report highlighted our environmentally friendly products and other aspects of our Groupwide environmental commitment to a better world, and also included a feature on safety, security anddisaster prevention. We deployed safety measures at the Omi mine, the source of carbide for the Omi
Plant, as well as disaster preparation efforts at the petrochemicals complex at which the Chiba Plant
operates.
We would greatly appreciate your candid feedback on this report. We would like the opinionsof as many stakeholders as possible, and aim to reflect those views in our CSR activities.
We hope that the report enhances understanding of DENKA’s activities and efforts.
September 2009
Higashi Ito
Representative Director, Executive Vice President
Chief Operating Officer

55