2023

Vol.15

The Denka Way

The
Denka
Way

SpringSpring2023 Vol.15

Publisher: Corporate Communications Dept., Denka Co., Ltd.
Nihonbashi Mitsui Tower, 2-1-1 Nihonbashi-muromachi, Chuo-ku, Tokyo 103-8338
Editor-in-chief: Hiroyuki Yamamoto / Published: April 1, 2023

OUR “NEW”
VISION & Mission 2030

Unauthorized
reproduction prohibited

The challenge
to makethe world better
beginsOUR “NEW”
VI SIO N & Mi s s i o n 2 0 3 0
Our new vision andmanagement plan “Mission 2030”
Denka Group will take on a new challenge starting April 2023.
The old Corporate Philosophy, “The Denka Value,” “Denka’s Mission,” and “The Denka’s Principles”
will evolve into a new “Vision” that is based on employee feedback and looks to a new future.
Additionally, New Management Plan “Mission 2030” will begin toward the year FY2030.
Why is a new vision necessary for Denka? What will be the focus of the new management plan?
Executive officers and employees share their thoughts in this special feature.

2022
Creating
a newvision2023
February 16

Various data thatpredicts the future of
the world
See Pgs. 4-5

Kick OffThe discussions
start!
“The Vision
Development Project”
beginsApril 13

Session 1

Session 2

Session 3

What is Denka’s Core
Value (principles andbeliefs)?

What is Denka’s
Purpose (reason
for existing)?

What is Denka’s
Mission (the goals tobe achieved)?

Final session
Presentation for the
management teamManagement
team has a
discussion

Decision
madeNovember 8

April

Vision presentation

The new vision
starts!

See Pgs. 6-7

44 young employees
from various departments
participated

2

The Denka Way | 2023 Spring

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3

FUTURE WORLD

The first step in deciding on Denka’s vision was to envisage the “future world.”
Denka first wanted to understand, as best the company could,
what kind of future awaits it so that it can continue to meet expectations as a company.
Denka analyzed in detail the various data that has been published by all the think tanks anddrew up the future world from various perspectives, such as population trends, market trends,

Part.1D e n k a ’s N e w V i s i o n

and more. In addition, Denka determined the fields they could contribute to,
set them as “megatrends,” and incorporated them into its “three focus areas.”

What Denka can do for the future world

The envisaged “future world,” “megatrends,” and “three focus areas”
became the foundation of the company’s new vision and management plan, “Mission 2030.”

Megatrends Derived
from the Future WorldThe Envisaged Future World

Sustainab ilit yMore natural disasters andgrowth of the renewable energy
field due to global warming

More natural
disasters

Shift to electricvehiclesMore renewableenergyMarine plastic pollution

Global economic losses due to an influx of

The percentage of electric vehicles,

The ratio of Japan’s renewable

but if we continue as we are now, the current pollu-

natural disasters from 1978–1997 totaled

including hybrids, throughout the worldenergy in 2019 was 18%, puttingtion amount will double to 2,900 tons by 2040.

around 148 trillion yen. The total fromwas only 8% in 2019, but it will growus behind Europe, where most

1998–2017 grew to about 250 trillion

to 51% by 2030. They will becomecountries were around 40%. Japan’syen. The global economic loss will only

the most popular automobiles.

government is aiming to reach about

continue to grow due to natural disasters

By 2030, the domestic digital

E vo lving
techn ology

Marine plastic pollution has long been a concern,

Marine plastics will outweigh theworld fish population by 2050.

36–38% by 2030.

resulting from global warming.

Expansion of DX, AI, and 5G markets
DX market

transformation (DX), AI, andIndustrial structure changes
AI market

About 3 trillion yen

5G-related device markets will

About 2.1 trillion yen

About 3.8x

About 4xsignificantly expand.

791.2 billion yen

Enhancement of DX, AI, andother technologies will be realized quicker

FY2019

Increased demandfor infrastructure

Gl ob alp op u latio n gr ow thWith Africa and India in the lead, the global

Pandemics and insufficient foodand water sources will poseserious issues

in urban areas. With the progress of global

5G-related device market

FY2018prediction

2016
Around

7.5 billion

plateau, and population will be concentrated

Create a better society
with the supply of
cutting-edge materials

victor is unknown.

FY2030prediction

2020
prediction

Sophisticatedmedical needs

2030
prediction

Insufficient water and foodand food. Compared to FY2000, there will be a total increase of2030; however, the rural population will

Expanded demand
for semiconductors
and devices

ICT & Energy

of DX and more. New players will join the various industries,

With an increase in population will come a rise in demand for water

population will grow to about 8.6 billion by

maintaining infrastructure is rising.

munications industries will be brought down due to the evolution

Mobility
revolution

About 11.1 trillion yen

Global population growthurbanization, the demand for building and

The wall that currently separates the vehicle, energy, and telecom-

Renewable energy

fighting styles will change, and it will become an era where the

About 6x530.1 billion yen
FY2030prediction

About 69.6 trillion yen

Three Focus Areasof Denka2030 prediction
Around8.6 billion

Innovative medical
technology

55% in use of water for daily life as well as water for industrial use
by FY2050. There is a possibility that about 40% of the world’s

Healthcare
Improve quality of life forpeople around the worldin areas of prevention,
diagnosis, and treatment

population will face serious water shortages. Regarding food supplies in 2030, in addition to the demand of vegetable oils growing

Most increases will occur in urban areas

to about double what they were in 2005–2007, demand for corn,meats, wheat, rice, and more will increase.

Spreading social unrest
The momentum toward focus on global sustainability is growing and

C on fusion insocial ord er

technology is advancing. A rise in population is accompanied with the big

Growing social unrest with awidening gap, more geopoliticalrisks, and more

and international conflicts, development only being possible in certain

possibility of expanding business opportunities, but it is difficult to say theworld is heading toward stability. There are already various challenges being
faced, such as recently peaceful lands breaking out in war due to domestic

Rising politicaland militarytensions

Unevendistribution of
wealth and fixeddisparities

Regional
conflicts andterrorism

Foods and water
resources depletion
Increased
infrastructure
demandSupply chain
disruptions

Sustainable
LivingRealize safe, secure, andcomfortable daily lives

populations, and the growing gap between the rich and poor.

Sources: Sustainable Japan (Neural Inc.), Boston Consulting Group, Ministry of Economy, Trade and Industry, The Pew Charitable Trusts, SYSTEMIC CHANGE Inc., Ministry of the Environment, FUJI KEIZAI Co., Ltd., Nomura Research Institute, Ltd., Yano Research Institute Ltd., the United Nations, and Ministry of Land, Infrastructure, Transport and Tourism

4

The Denka Way | 2023 Spring

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5

OUR VISION
Denka’s Vision
OUR VISION

Based on an analysis of the envisaged “future world,” we created Denka’s new vision throughdiscussions between 44 young employees and executive officers. It is a pyramid encompassing“Core Value,” “Purpose,” and “Mission.”

By 2030, we will increase the value of our human resources and management,core value

MISSION

Denka' s commitment

The “Core Value” is Denka’s DNA. It could be said that “Initiative,” “Integrity,” and “Empathy” areand we will focus on creating business value that combines the three elements

attitudes passed down in Denka for generations that have been re-illustrated in words. They are aof specialty, megatrends, and sustainability.

creed that already lives within us and should be cherished more.

MISSION

purposeThe ”Purpose” is Denka’s guiding principle. It is the fundamental reason for our existence. Denka
selected the words “chemistry,” “make the world a better place,” and “specialists” after thinking about
and deciding what kind of presence we want to be in the world and what we can do as Denka that

Denka's guiding principle

no one else can.

PURPOSEmissionMake the world a better place

PURPOSEas specialists in chemistry.

The “Mission” is Denka’s commitment. It is made of our bold, convincing, and ambitious targets. The“Core Value” and “Purpose” have universality, but the “Mission” has a goal and a time limit. It’s themountain we need to climb. We aim to reach the mountain’s summit by 2030, and we incorporated
a concrete strategy in our new management plan, “Mission 2030.”

CORE VALUE

corporate slogan

Denka's DNA

Furthermore, so that Denka’s vision could be more easily communicated internally, we came up

Initiative: We will continue to challenge the possibilities of chemistry.
CORE VALUE

with the Japanese corporate message “世界に誇れる、化学を.” We further enhanced ourold slogan, “できるをつくる,” by incorporating our aim to make the world a better place with

Integrity: We will engage in our work with sincerity and dedication.
Empathy: We will respect diversity and create a safe and secure environment.

chemistry as an unrivaled presence, or specialist, the world can be proud of. The English corporate
message, “Possibility of chemistry,” will continue to be used.

CORPORATE MESSAGE
Yoko Horikoshi
Advanced Polymer
Research Dept.
Denka Innovation Center
New Business Development Dept.

Here are messages from the members who participatedin “The Vision Development Project” on the thoughtsthat went into the vision’s creation.

6

The Denka Way | 2023 Spring

Eri Kamimaki
Polymer Research Dept.
Polymer Solutions Dept.
Elastomers & Infrastructure
SolutionsElectronics & Innovative
Products

Dreams make life, visions
make corporations

A Denka at which everyone
can enjoy working

I like Shohei Otani’s quote, “Life doesn’t
make dreams, dreams make life,” andI think in a similar way, “visions makecorporations.” I am searching for what
motivates me and what kind of life I wantto lead as I observe and learn from thepeople around me that I respect.

I reconsidered what it means for Denka
to be a company that holds an importantsocial role in a wide variety of fields. I thinkpeople are the most important. I think it
would be great if we could create a work
environment at Denka that conveyed to
all members this message: “We all careabout you.”

Possibility of chemistry

Yusuke Takahashi
Electronic Products Dept.
Elastomers & Infrastructure Solutions
Electronics & Innovative
Products Dept.

Overcoming conflicting
opinions and thinking it
through
It was difficult coming up with a vision thatwould be understood by all employees
and our opinions clashed. On the other
hand, I could tell we all wanted to makethis an outstanding company recognizedby ourselves and others. As for me, I now
have a clearer sense of what it means towork at Denka.

Akihiro Yamashita
Organic Materials
Research Dept.
Polymer Solutions Dept.
Elastomers & Infrastructure Solutions

Soichiro Nakanishi
Sustainability
Promotion Div.

Kana Sato
Corporate
Planning Dept.

We thought about thepast and future

A vision at our center isimportant for change

Reminded of the infinite
possibilities

We looked back on Denka’s 100-year
history and racked our brains thinking of avision that looks toward the future. I think
it is difficult for everyone to feel familiarity
with a “vision,” but this time I think wewere able to come up with something
everyone can sympathize with. I, too, will
work hard to achieve our vision.

In order for Denka to take the next step
forward, I think it is important to separate
what is important to change with the times
and which traditions we should keep andto clarify the meaning of our existence. As
the generation that will build the foundation for the next 100 years, I want to geteveryone around me involved.

I participated in the project as both asecretariat and a member of Generation
Y/Z. Through the project, I was remindedof the wonderful people at Denka and thepassion they have as well as the infinite
possibilities available to us. I will give myall, keeping in mind the vision that willserve as our compass.

The Denka Way | 2023 Spring

7

OUR THOUG HTSInterview with President Imai

Eyes forward
Go Forward, Guided by the Shining North Star
We asked President Imai what thoughts went into the vision and what he wants to convey to all our stakeholders.

A vision of simpler,
more powerful words

to achieve much higher goals in 2030. I wanted

that, in order for us to survive and continue to grow,opinions. I also sensed their desire to contributeto create a vision that would help realize the next

we need to become “Denka specialists” and pour our

to society and grow through their job. This new

management plan, “Mission 2030,” and that everyone

management resources into “the job we can do better

vision reflects the determination of both Denka

I would like to thank everyone at all our offices andwho plays a core role at Denka could be proud ofthan anyone else.”

and those who work here to demonstrate theiraffiliated companies for working up to the very end toaccomplishing and that makes their faces light up.”That said, “the job we can do better than anyone

The young project team held discussions overelse” cannot be something that makes us selfish. In

achieve the goals in our management plan, “Denka
Value-Up,” ending at the end of March.

addition to “specialty,” “megatrends” help us measure

In alignment with the start of our new vision“core values” that make up Denka’s DNA: “initiative,”

whether a product is truly needed by our customers

depends on everyone’s ability to take it andand mission in April, I want to share my thoughts“integrity,” and “empathy.” “Empathy” is especiallyand the world, and “sustainability” measures whether

make it something of their own. One of the keys

with everyone.

unique and was not part of the original corporate

those products will be needed in 2030 and beyond

to this vision’s success is the leadership of the

In 2015, the 100th anniversary of Denka’s

philosophy. Feel reassured and work energetically inand whether those products are providing value.

managers who are responsible for spreading thea safe environment. Understand the customer’s true

These three elements together are what define “thevision at the work sites. I expect them to leadphilosophy, “The Denka Value.” Our mission wasneeds. Make an environment free of accidents forjob we can do better than anyone else” and make up

their teams with the “purpose” at the center of“Taking on the challenge of expanding possibilities

your coworkers. And most importantly, ensure diversity

the “three-star businesses,” or ”Denka specialists,” that

their decisions.

of chemistry to create new value and contribute toto maintain the organization’s competitiveness. None

we should focus on.

sound social development,” and we decided on fiveof the above can be accomplished without empathy

We will need to make changes and face

duty to always anticipate the future that awaits us in“Denka Principles.”for your partners. We were able to determine excellent

challenges in the various areas and at the sites to2030 and beyond, to focus management resources“core values” necessary to Denka’s future.

make all businesses into “three-star businesses.” Weon the “three-star businesses,” and to build ourwill change our portfolio, including disposing of andsuccesses so that we can achieve this vision. Even

withdrawing from businesses we do not see as having

when faced with challenges, I will keep my eyes

the potential of a three-star business. In addition

forward, look at the shining north star, and proceed

to making these decisions, it is necessary for us toforward without hesitation.

update our philosophy was because I thought it wasnecessary to have a more powerful vision as our

Becoming a specialist is
the only path for Denka

foundation to bring us together as one to promote
our new management plan.

8

The Denka Way | 2023 Spring

Whether we can make this vision meaningful

establishment, we came up with a new corporate

next management plan as an opportunity to also

Toshio Imaia specialist.

the last two years, first coming up with the three

The reason we took the determination of theRepresentative Director,
President

strengths and make the world a better place as

Incorporating the thoughts ofyoung employeesWith “core value” at its base, the “purpose” acts astake to the next level the challenger DNA we havethe guiding principle that shows us the unchanging

accumulated since Denka’s establishment.

direction we should aim for. It’s similar to the“Specialty Fusion Company” mentioned in “Denka
Value-Up.” The only path forward for Denka is to

As someone with a role in management, it is my

Finally, together with all group internal and external
stakeholders, Denka will aim to “Make the world abetter place as specialists in chemistry” and make all

Taking something andmaking it our own is the key
to achieving our vision

The creation of our vision started with lending an ear“Make the world a better place as specialists into the young employees at Denka. After taking into

chemistry.” Globalization will continue to advanceconsideration the current conditions surrounding us,

forward without turning back, further expanding the

I could feel everyone’s challenger spirit while

it became clear we would need to stretch ourselves

stage of work and advancing technology. Throughout

listening to the young employees exchange theirbusinesses “three-star businesses” by 2030. Pleaselook forward to Denka’s continued transformation.

The Denka Way | 2023 Spring

9

OUR ACTION
Part.2Business
Value Creation
Increase profitability in megatrend areas
where Denka can demonstrate its strengths tocontribute to a sustainable society.

Mission 2030

Actions leading to 2030
The Mission 2030 is a management plan with goals to reach by 2030 in order to realize Denka’s new vision.
As a growth strategy plan, Denka is making efforts to increase corporate value through improving business value creation,
human resources value creation, and management value creation. For business value creation, Denka aims to turn all its businesses into
“three-star businesses” that incorporate the three elements of specialty, megatrends, and sustainability.

Three focus areas
ICT & Energy
Healthcare
Sustainable Living→ Introduced on pages 12 to 13

Human
Resources
Value Creation
Become a company that enables each individual
to actually feel their own growth with Denka’score values of initiative, integrity, and empathy.

Business
Value Creation

Policies
Strengthening HR development systems
Promoting Diversity, and Equity & Inclusion
Health and productivity management, andwork style reform

Specialty

Management
Value Creation
Human
Resources
Value Creation

Management
Value Creation

10

The Denka Way | 2023 Spring

Megatrends

600

Sustainability

Strengthen ESG management through moresophisticated corporate governance.
Policies“Three-star businesses”
consisting of three elementsbillion yen
or moreOperating income

100
15billion yen
or more

ROE

540

100 %

Operating income ratio

15

Process reforms
Respect for human rights
Placing the utmost priority on safety
Supply chain management
Product safety
Enhancement of corporate governance% or higher

10

ROIC

% or higher% or higher

Total shareholder
returnratio

50billion yen% levelfrom FY2023 to FY2030

CO 2 emissions

60

By 2030, Denka will increase the value of its human resources andmanagement, and the company will focus on creating business valuethat combines the three elements of specialty, megatrends,
and sustainability.

Three-star businesses

Sales

Approved Investment settlement

Pursuit of sustainability

MISSON

2030 KPI Targets

Maximum output of renewableenergy power

150 MW% reduction comparedwith FY2013 (1 million tons)

2030 KPI Targets
Average training costs(compared to FY2021)

2

Ratio of women, foreign
nationals, and mid-careerhires in managerial positions

times

Visualization and ongoing
improvement of employee

50

engagement%

2030 KPI Targets
Investment in process
reforms

50 billion yen

from FY2023 to FY2030

Rate oflost-worktime
injuries

Identification of humanrights risks and theestablishment ofresponse processes

High-risk
suppliers

Seriousqualityaccidents

Seriouscomplianceviolations

0

0

0

(1.1 in FY2021)

0.2

or
under

The Denka Way | 2023 Spring

11

FOCUS AREA

In business value creation, we will focus on three areas that derive from our envisaged world of the future andmegatrends: ICT & Energy, Healthcare, and Sustainable Living.
In tandem with this, we will pursue sustainability through each of the areas.
Through these measures, we intend to shift more emphasis to “three-star businesses”
that combine the three elements of specialty, megatrends, and sustainability.

Three Focus Areas in Creating Business Values
Megatrends and Specialty【Policy】Create a better society with the supply of
cutting-edge materials【Strategy】In the next-generation high-speed telecommunications sector, we will establish the top share in thefields of energy loss and heat conduction by mastering

ICT & Energy

Sustainability»Electroconductivity, super high-purity, durability

Technology»Precision spheroidization »High temperature control»Precision film formation »Coordination polymerization»Nanoparticles »Impurity control »High temperature firing

Strategic»Establish top market share»Become the de facto market standard

In the xEV and renewable energy sector, we will master

Operating Income Target
for 2030

nanoparticles and high temperature firing technologies to

45 billion yen

and renewable energy markets and make them the de facto

create products that will lead the next-generation battery

Pursuit of Sustainability»Energy loss, heat conduction

Needs

precision particle spheroidization and high temperature
control technologies.

xEV & Renewable
EnergyNext-generation high-speed
telecommunications

Products

Measures

Spherical silica, spherical alumina

Emitter

Acetylene black

Ceramic substrates

Carrier tape sheets and top covertapes

Low diel ectric organic insulating
material

Silicon nitride

Spherical silica, spherical alumina

Achievement of carbon neutrality

Heat dissipation materials

market standard.

Business Value Creation【Policy】Improve quality of life for people around theworld in areas of prevention, diagnosis, and treatment【Strategy】In the prevention area, we will use newPrevention

Diagnosis

Treatment

Portfolio reform
includingestablishmentof low-carbon
acetylene chain

Development andExpansion of green
implementation ofenergy by increasCO2 capture, storing hydroelectricage, and utilization power generation andtechnologies
establishing new solar
power planttechnology to research vaccines, such as mRNA vaccines,that differ from those of conventional culture technologies.

Healthcare

In the diagnosis area, we will improve the performance»Prevention of infectious diseases»Advancement of vitro diagnostics»Cancer treatments

Technology»Cultured and recombinant proteins»Production of diverse antibodies»Simultaneous multi-item measurement»Culturing and purification of viruses »Formulation

Strategic»Using new technology to research and develop new
vaccines, such as the mRNA vaccine»Entry into next-generation diagnostic pharmaceuticals andgenetic testing domains»Upgrading of manufacturing capabilities and development ofbusiness in the CDMO domain

Needs

of reagents and testing kits and strengthen our productlineups to bring high value-added products to the market.

Operating Income Target
for 2030

In the treatment area, we will strengthen our viral products

40 billion yen

accompanying the expansion of indications and overseas

manufacturing capacity ahead of the growing demand

Influenza vaccines

Reagents for automatic analyzers

G47Δ virus preparation
for cancer treatment

Norovirus vaccine (under development)

Antigen testing kits

Developing new products

Products

Sustainable cities and fulfilling
daily lives

Promotion of circular
economy for styrenebased packaging
materials

development.

Establishment of
CO2 sequestration
technology【Policy】Realize safe, secure, and comfortable daily lives【Strategy】In the food sector, we will contribute tosolving food shortages by utilizing biostimulants and fertil-

Infrastructure

Daily
necessities»Contribution to food demand»Easing the impact of natural disasters»Reducing the burden on the environment»Circular economy

Technology»High-temperature firing»Humic acid control»High density/densification»Quick hardening »CO2 fixing»Chemical recycling»Development of bio-derived resins

Strategic»Overseas expansion»Technology development and overseas marketing adapted toincreasingly sophisticated infrastructure demand»Early establishment of technology and social implementation»Collaboration with local communities and other companies

Foods

izers. In the infrastructure sector, we will use special cement

Sustainable
Livingadditives to achieve rapid product development and focus
on overseas development. We will also reduce the burden
on the environment through the carbon-negative concrete.
In the daily necessities sector, we will contribute to the

Operating Income Target
for 2030

15 billion yen
12

The Denka Way | 2023 Spring

Needs

Environmental conservation andminimization ofenvironmental footprint

realization of a circular economy through the establishment of chemical recycling and the development of
bio-derived resins.

Special cement additives
Products

Biostimulants
LEAF

High-performance styrene-based resins「PLATIECO®」PLATIECO® (a sustainable plastic)

Continuation of zerowaste emissions

Response to natural-related risks, such as
biodiversity and water
resource conservation,
based on the Taskforce
on Nature-related Financial Disclosures (TNFD)

The Denka Way | 2023 Spring13

W H AT W E A I M F O RPart.2 Mission 2030

2030 KPI Targets

ROIC

Q&A w i t h K azu o Takah ash i, Sen ior Man agin g E x ecut iv e O ff icer
Rate of lost-worktime injuries

The Road to Achieving “Mission 2030”(FY2021: 1.1)

We had the opportunity to speak with Kazuo Takahashi, Managing Executive Officer,

10

%

ROE

or higher

0.2

CO2 emissions
or under(Compared to FY2013)

15

%

60

%

or higher

reduction

about the key points of ”Mission 2030” and the mindset that will be required to achieve it.

Q

A

Both financial and non-fi-

I would like all managers to be keenly aware of theplants understand the importance of non-financial

first of our financial KPIs, which is the ROIC (Return

KPIs such as “rate of lost-worktime injuries” andOn Invested Capital) of 10% or higher, and work

“CO2 emissions.” Safety is paramount, and we want

towards achieving it. This is also a requirement of

everyone to arrive and leave work in good health.

nancial KPIs have beenreleased, but are there any

Kazuo Takahashi

Representative Director,
Senior Managing Executive Officer

figures that you would like“three-star businesses.” Currently, our figure of 7%

Additionally, reducing CO2 emissions is a challenge

employees to pay particu-

is in line with that of other chemical manufacturers.

that we can all take on. It’s estimated that the carbon

lar attention to?

However, our shareholders have entrusted us with

dioxide tax in 2030 will be around 10,000 yen per

funds for investing in expenditures and M&A, so weton, which could wipe out most of our net incomemust set challenging goals and meet the expectationsat current emissions levels. Achieving these goalsof our many stakeholders.

will only be possible if management decisions and*In charge of the Business
Planning Dept. as ofMarch 2023.

Q
What did you particularly
focus on in formulating“Mission 2030?”

We hope that all employees working in ourA

We will clarify our value as a world-class integrated chemical
manufacturer through value creation in the three areas ofbusiness, human resources, and management.

Denka will avoid the “conglomerate discount*” trap

sustainable growth. When formulating our plan,Q

by refining our businesses in the three focus areas

our top priority was to convey this basic idea in an

How do you specificallyIn April, we will establish two committees: thelatter will be attended by outside directors andwhere we can demonstrate our strengths and creatingeasy-to-understand manner. Additionally, we will focus

Chairman Yamamoto as an observer, and will play

our management resources on areas where we excel

intend to run the

Portfolio Transformation Committee, which will focus“three-star businesses” based on the three elements

on achieving financial KPIs, and the Sustainability

a role in accelerating the resolution of non-financial

Committee, which will focus on achieving non-fi-

issues. Through free and vigorous discussions

nancial KPIs. The former will be led by a director

across the entire company, these committees will

and include heads of technology, research, andsupport management decision-making and progresshuman resources strategy, who will work towards

management.

allow us to increase our business value and achieve

and will not hesitate to withdraw from businesses

business?

where we cannot demonstrate our strengths.

*A conglomerate discount refers to the tendency of markets to value a diversified group of businesses at less than the sum of its parts.

Q
How will we create value

The reality is that Japan’s working population is

opinions. Our goal is to preserve Denka’s uniqueprojected to decline by 8% in 2030. However, weDNA, which has endured for 107 years, while also

believe that our people are the key to creating theembracing positive changes to our corporate culture.

We will promote the transformation of our corporate culture
through investment in human resources and system reforms.

future of Denka. As such, value creation in human

The Denka Way | 2023 Spring

In the area of management value creation, we will

Q

A

What kind of mindset is

It’s important to avoid complacency in our work.

That said, people’s mindsets cannot be changed

People can get used to anything if they do it for asolely by an order from top management. People only

week. However, decline sets in once we start thinking,change when they have a rational reason to do so

Reviewing your work is the first step toward change.

resources is an urgent priority, and we are committed

focus on reforming our business models and organi-to investing in human resources and reforming ourzation, improving productivity, and ensuring worker

required of employees tosystems to enable each and every employee tosafety to reduce the rate of lost-worktime injuries. We

achieve “Mission 2030?”“There’s no room for improvement in my work.” Weand when it is in their best interest and that of theirexperience a sense of growth.

will also prioritize product quality control, strengthen

should always be asking ourselves questions like, “Isfamilies. We believe that a system that encourages

corporate governance, and uphold high ethicalthis the best approach to this work?” “Are these thethis kind of thinking will be a driving force in acceler-

and innovating requires diversity. As such, we will work

standards through transparent and fair practices. At

right people for the job?” or “Is there anything wastefulating change.

on hiring a diverse workforce, flexibly assigning the

Denka, we believe that the steady accumulation ofor dangerous in this process?” By continuously

right people to the right jobs, and creating workplaces

day-to-day efforts is the foundation of our successevaluating our methods and making improvements,

comfortable and efficient workplace. We hope that you

where people can freely and openly express theirand the key to creating value.

we can grow.

will help us by voicing your support for these changes.

We also recognize that taking on new challenges

14

Two committees will be formed to promote KPI achievement
across the company.

promoting the “three-star business” portfolio. The

A

management?

ongoing efforts by employees are aligned.

Aof specialty, megatrends, and sustainability. This willin human resources andWe would like everyone to be aware of ROIC,
rate of lost-worktime injuries, and CO 2 emissions.

Management will take the lead in creating a more

The Denka Way | 2023 Spring15

Vol. 01
New Visions

To p
Management

My Vision

Denka’s Future as Envisaged by Each of Us
The “mission” I want to accomplish in 2030

We will ask employees from various positions, generations,and workplaces about the future they envision for Denka, changing the theme in each issue.

Establishing new businesses withthree elements by creating businessand human resources value

Making our business sustainable bysecuring potential
human resources

Nobuyuki Yoshino Managing Executive Officer

Hideki Takahashi Managing Executive Officer

Establishing new businesses starts with searching for themes that are expected to haveOnce a business is established, it will last for 20 to 30 years. Many executives in Life

good compatibility and future synergistic effects with Denka. To narrow down the searched

Innovation, including myself, are of older age and have a wealth of various experiences,

themes, we need to establish a highly stable business model. This process requires a wide

but most of us will retire in a few years. At the same time, our healthcare businessrange of technological capabilities that can address the fusion of new and conventionaltends to be regarded as a “special area” and is avoided by other divisions. Regardlesstechnology and human resources who have the ability to monetize those capabilities. Toof whether an employee’s background is in the humanities or science, if they aspire togain the technological capabilities and the human resources, we must create business andmake the world a better place as specialists in chemistry, I promise I will prepare a field

human resources value as the two pillars of new business establishment. We will aim forin Life Innovation that is not labeled as a special area but is one in which many people

establishing new businesses incorporating the three elements of specialty, megatrends, andcan play an active role.

sustainability by increasing business and human resource value on a long-term basis.

My P erso nal V i si on f or 2 0 3 0
I will retire in 2030, but I don’t have a definitive vision yet. I hope that I can live a carefree life with peace ofmind while living in my favorite place, traveling whenever I want, and looking after my grandchildren and otherfamily members.
Goshuin book (for Goshuin, a seal that is given at shrines)

M y P e rso n a l V isio n f o r 2 0 3 0
If I just stay home, I will get involved in several local volunteer activities,
so I hope to spend half of every year in Hawaii if I can.
(The room pictured isn’t my property.)

Maintaining healthy financesthat will be the foundation fora sustainable company

Growing human resources andcreating human resources value
for the next century

Rimiru Hayashida Managing Executive Officer

Ikuo Ishida Managing Executive Officer

When focusing on businesses with specialty, megatrends, and sustainability, we

Mission 2030 has various KPIs based on human resources. It is no exaggeration to

can’t avoid financial burdens, including strategic investment for creating new value

say that if we don’t grow human resources, we can’t look ahead to the next century.

(businesses) and costs for renewing businesses (portfolio reform). For this reason,

I believe that environments surrounding companies will change more rapidly, so we

we will fulfill our role to realize balanced spending for our future activities (offen-

need to cultivate the ability to identify and adapt to the changes from a long-termsive) and financial health (defensive). In addition, I would like to seriously thinkperspective. I think that by discussing each employee’s career and life plans in addition

about whether the management or business operation methods can be changed

to holding training seminars, we can focus on cultivating next-generation human re-in terms of capital efficiency, such as ROE and ROIC. Through my work, I will playsources by using our experiences and increasing the level of diversity in our company.

a role in the company’s sustainable and healthy growth.

My Personal V is ion f or 2 0 3 0
I will be about 70 years old in 2030. I hope that by that time,
I will be living a peaceful life where my greatest concern will be my granddaughter,
who will be an elementary school student.

16

The Denka Way | 2023 Spring

M y P e rso n a l V isio n f o r 2 0 3 0
I will have already retired in 2030,
but I would like to always keep curiosity alive in order to take on new challenges.
At Kurashiki Ivy Square, Okayama Prefecture

The Denka Way | 2023 Spring

17

DENKA TOPICS
A Specialist’s
Perspective

Introducing Denka Group news topics from January to April 2023.

Apr.

Through “Mission 2030,” Denka aims

Denka has changed its Japanese corporate message “できるをつくる。
” to “世界に誇れる、化学を。
” in order
to convey its new vision internally and externally. Denka has also completed two videos that are now available on its
corporate website. The first video is designed to explain Denka’s vision to external stakeholders. The second video,featuring President Imai and other executives sharing their perspectives on the new vision, is to enhance employees’
comprehension of the Mission 2030 new management plan. The videos can be viewed on a special Mission 2030
webpage, so please check them out.

to become a specialist in the chemistry
field. What do Denka’s specialists foresee
for the future?

I Believe in Unseen Possibilities and
Do Not Want to Stop Challenging
Myself.

*Denka’s English corporate message, “Possibility of chemistry,” remains the same.

Denka’s -type SiAlON phosphors are mainly
used in white LED backlighting for LED displaysJan.

and more. In order to realize better and more
vivid phosphors, Toyoshima is researchingand developing new phosphors using material
informatics.
The R&D of new phosphors requires patience.
This is because it is the process of creating
something from scratch. Despite this, Toyoshima has not given up on experimenting. “Thisprocess could lead to some unexpected results,
so I have thrown away all preconceptions and

The new vision andMission 2030 can beviewed on a special
webpage.

Changing the corporate slogan and completing vision videos
for internal and external use

Signing ceremony following the establishmentof a corporate venture capital (CVC)

On January 16, Pegasus Tech Ventures and Denka established a CVC
fund and held a signing ceremony.
By investing in and collaborating withventures around the world that havecutting-edge technology, products,
and business models, Denka will aim
to strengthen and expand existing
businesses while accelerating the creation of new ones. The fund is aiming to invest
a maximum of around 0.1 billion US dollars by FY2030.

Jan.

PLATIECO® eco-friendly andsustainable plastic developed

A new eco-friendly and sustainable plastic
called PLATIECO® has been developed by
combining natural eggshell with polystyrene
resin, a type of plastic. This material has already been used in Gundam plastic models
from the Mobile Suit Gundam series, as it
can reduce plastic usage and greenhousegas emissions.
GUNPLA using PLATIECO®,“ENTRY GRADE 1/144 RX-78-2 GUNDAM [Classic color]”(Manufactured: BANDAI SPIRITS CO., LTD.) (C) SOTSU・SUNRISE

am trying to keep pushing forward. The feelingafter discovering a new material through using
trial and error to find the most optimal path toFeb.

development is rewarding.” He also spends hisdays refining his expertise so he does not missdiscovering even a slight change when analyzing
the numerous results of his experiments on
both macro and micro levels. Toyoshima said
passionately, “My dream is to create a new,groundbreaking phosphor that undermines
everything we thought we knew, thereby helping
Denka’s technological capabilities be recognizedthroughout the world.”

Denka has extended its annual uniform
partnership agreement (covering the neckarea) with ALBIREX NIIGATA in the J1 Soccer
League. In the 2023 season (February 2023
– January 2024), Denka will continue toprovide support to ALBIREX NIIGATA. In accordance with its ESG policy, Denka strives©ALBIREX NIIGATA
to contribute to society and people’s lives byimproving health and welfare, promoting sports, and revitalizing local communities.

Hiroaki Toyoshima

Specialty Ceramics Research Dept.
Denka Innovation Center
New Business Development
Joined the company as a mid-career transfer in 2010.
He is working in the research and development of newphosphors using material informatics at the Denka Innovation Center.

18

The Denka Way | 2023 Spring

Annual uniform partnership contract withALBIREX NIIGATA extended
Further progress expected in the 2023 season
with the return to J1

Mar.

Feb.

Groundbreaking ceremony for achemical recycling plant for styrene resins

On February 1, Denka and its groupcompany, Toyo Styrene Co., Ltd., held agroundbreaking ceremony to constructa chemical recycling plant for styrene-based resins at the Chiba Plant.
The ceremony was attended by Senior
Managing Executive Officer Shinmura
and Managing Executive Officer Tokumoto from Denka, as well as President Ishizukafrom Toyo Styrene and President Miyagawa from Denka Consultant & Engineering
Co., Ltd. During the ceremony, a Shinto ritual was performed, and all participants
prayed for a safe construction process.

Recognized as one of the “White 500” enterprises
On March 8, Denka was selected as one of the top 500 companies (“White 500” enterprises) in the large enterprise category of the2023 Certified Health & Productivity Management Outstanding Organizations Recognition Program. This program is organized by the
Ministry of Economy, Trade, and Industry (METI) and the Nippon Kenko Kaigi to recognize companies that excel in health management, taking into account their efforts on regional health challenges and the Nippon Kenko Kaigi’s health promotion initiatives. This
marks Denka’s second consecutive year of being selected for the program.

The Denka Way | 2023 Spring19