Sanyo Chemical Group
Integrated Report2022

For the year ended March 31, 2022

Profile

StrategyFoundation

Sanyo Chemical Group Corporate Identity

Sanyo Chemical Group company mission

CONTENTS

Establish a better society
through our corporate activities

ProfileStrategy
Vision 2030

VisionGrow into a global, unique, and highly profitable company where
every employee feels pride and satisfaction in his/ her work

Foundation

Values● Inspire WakuWaku feeling from all the stakeholders● Co-create environmental, social and economic values withthe stakeholders● Facilitate every employee’s value creation

2030 Targets

Operating profit

50 billion yen

1

Sanyo Chemical Group Corporate Identity

3

Conceptual Diagram of “WakuWaku Management”

5

At a Glance

7

Sanyo Chemical Group History

9

Financial and Non-financial Highlights

11

Message from the President

19

Sanyo Chemical Group Material Issues

21

Feature23

Business Overview

23

Toiletries and Health Care

25

Petroleum and Automotives

27

Plastics and Textiles

29

Information and Electrics/Electronics

31

Environmental Protection, Construction and Others

33

New Growth Path

35

Research and Development/Intellectual Property

37

Climate Change

39

Human Resources/Job Satisfaction

41

Occupational Safety and Health/Accident Prevention

43

Corporate Governance47

Risk Management/Compliance49

Spirited Discussion Meeting of Outside Directors

53

Directors, Audit & Supervisory Board Members,
and Executive Officers

55

Eleven-year Financial Summary

57

Stock Information/Company Overview

ROIC

10 ％

Disclaimer
This document contains forward-looking statements regarding the plans, strategies, and performance of
the Sanyo Chemical Group. These forward-looking statements are based on information available as ofAugust 3, 2022. However, actual results may differ significantly due to economic conditions surrounding
the Sanyo Chemical Group’s business domains, competitive conditions, changes in product development
status, related laws and regulations, exchange rate fluctuations, and other factors. Please note that factorsthat affect these statements are not limited to the factors above.

1

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Profile

StrategyFoundation

Conceptual Diagram of “WakuWaku Management”
The Sanyo Chemical Group aims to achieve an environment-friendly circular-oriented society, a society where people canConcept of “WakuWaku Management”

live healthy and safely, a society where everyone can shine with their personality. To this end, we pursue the 2030 vision as
an “Interface Innovator” that takes on challenges beyond the boundaries of chemistry with its chemical capabilities, taking

WakuWaku Management intends to inspire the“WakuWaku” feeling of all stakeholders by
spotlighting every employee so that we can growinto a profit-oriented strong One Team.
WakuWaku Management will activate the interface
with stakeholders more than ever and build a better
society towards a “WakuWaku Future” .

advantage of its strength in advanced interface control technology.

2030
VisionSociety we want to achieve

Grow into a global, unique, and highly profitable● An environment-friendly circular-oriented society

company where every employee feels pride and● A society where people can live healthy and safely

satisfaction in his/ her work

● A society where everyone can shine with their personality

Conceptual diagram of“WakuWaku Management”“WakuWaku
Future”

Beautiful
PlanetSociety
Where Everyone
Shines

WakuWaku Management

Interface Innovator

Outcome● DEI● Passion● Interface Control Technology● “WakuWaku” of Everyone● Job Satisfaction● Comfortable● Creation of New Business Model● “WakuWaku Company”● Link People to People● “WakuWaku” Influence● Creation of Innovation● Support the Environment● Providing Solutions● Support Diversity● Beyond the Boundaries of Chemistry● Support People and Their Lives

Workplace● Free Atmosphere● Bright, Pleasantand Positive

One Team● Pride and DNA● Flexible Work

StylesInterface Innovator:
Facilitating changes at all interfaces by not only providing technologies and products,
including interface control technology and related products, but also connecting people andproviding solutions beyond the boundaries of chemistry with its chemical capabilities

3

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Profile

StrategyFoundation

At a Glance

Sales composition ratio

Major business bases of the Sanyo Chemical Group

Environmental Protection, Construction and Others

Toiletries and Health Care

Polymer flocculants for wastewater treatment, cationic monomer,
PPG for furniture and heat insulating materials, slurry chemicals,
reactive hot-melt adhesives, raw materials for building sealants,
cement chemicals

Surfactants for detergents,
surfactants for hair care products,
agents for papermaking,superabsorbent polymers (SAP),
raw material for pharmaceuticals,
germicides/disinfectants,
surgical hemostatic agents,
clinical diagnostic reagents for enzyme
immunoassay (EIA),
potting resins for artificial kidneys

11％

Information andElectrics/Electronics

34％

13％

Polyester beads used as a core component ofpolymerization toners (PEB),
toner binder,
electrolytes for aluminum electrolytic capacitors,
adhesives for electronic parts,
chemicals for use in electronic parts manufacturing,
UV/EB curing resins

FY2021

Domestic business bases
Head Office,Research Laboratory,
Kyoto Factory,
Katsura Research Laboratory

Sanyo Kasei Korea, Ltd.
San Nopco (Korea) Limited
Sanyo Chemical Manufacturing Korea, Ltd.
[Korea]Osaka
Branch Office
Chugoku Area
Sales & Marketing
Office162.5

Tokyo Branch Office

SANYO CHEMICAL（SHANGHAI）
TRADING CO., LTD.
DaXiang International Trading(Shanghai) Co., Ltd.
San Nopco (Shanghai) Trading Co., Ltd.
[Shanghai, China]

Kinuura Factory
Nishi-Nihon Area
Sales & Marketing Office

Plastics and Textiles

Nagoya Factory

Petroleum and Automotives

26％

Permanent antistatic agents, pigment dispersants,
resin modifiers, paint resins, defoaming agents,
raw materials for polyurethane elastomers,
chemical boards for models,chemicals for textile manufacturing,chemicals for carbon fibers,chemicals for fiberglass,polyurethane resins for artificial and synthetic leather

Thermoplastic polyurethane beads for theinterior parts of automobiles (TUB),
raw materials for polyurethane foams (PPG),
lubricant additives, additives for fuel oil,water-soluble cutting oil,halogen-free cleaning agents,base materials for synthetic lubricants,
paste resins for design models,
resins for automobile paints

SDP GLOBAL (MALAYSIA) SDN. BHD.
[Malaysia]
Sanyo Kasei (Thailand) Ltd.
[Thailand]

Operating profit（billion yen）

Net sales（billion yen）
60

Toiletries and Health Care
Toiletries and
Health Care

59.9

55.2

53.7

54.3

54.9

30

14％

FY202118％

11.8

billion yen

Plastics and Textiles

Petroleum andAutomotives

28％

Plastics andTextiles28％

Petroleum and Automotives

Information andElectrics/Electronics

Environmental Protection,
Construction and Others

43.1

42.7

30

37.3

3
0

60

6

22.1

22.1

21.4

20.8

25.4

0

60

6

20.4

22.7

20.9

17.0

20.9

3.0

1.7

1.5

0
6

17.9

18.2

16.5

15.2

18.6

2019

2020

2021 （FY）

3.2

3.3

4.0

3.3

3.0

2.7

2.9

3.2

3.3

2.1

3
0

2018

3.9

3.7

1.4

60

2017

Sanyo Chemical Group Integrated Report 2022

3

0

0

5

3

0

30

2.7

42.5

0

30

1.1

6

41.1

30

3.1
1.1

0

60

Information andElectrics/Electronics

6
3

0

12％

Sanyo Chemical Texas
Industries, LLC
Sunrise Chemical LLC[Texas, USA]SANYO KASEI（TAIWAN）LTD.
[Taiwan]

SDP Global Co., Ltd. [Tokyo]
SAN NOPCO LIMITED [Kyoto]
San Chemical Co., Ltd. [Kanagawa]
San-Apro Ltd. [Kyoto]
Sanyo Chemical Logistics Co., Ltd. [Aichi]

Operating profit composition ratio
Environmental Protection, Construction and Others

Sanyo Chemical America
Incorporated[Pennsylvania, USA]

Sanyo Kasei (Nantong) Co., Ltd.
San-Dia Polymers (Nantong) Co., Ltd.
[Nantong, China]

Kashima Factory
Nagoya Area
Sales & Marketing Officebillion yen

16％

Overseas business bases / Subsidiaries & Affiliates

0.9

1.2

1.1

1.2

1.4

2017

2018

2019

2020

2021 （FY）

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Profile

StrategyFoundation

Sanyo Chemical Group History
The Sanyo Chemical Group began operations in Kyoto in 1907 as Tada Soap-Oleo Works, a general partnership company,
which manufactured and sold high-quality soap. In 1949, during the recession in Japan after World War II, the company restarted as a joint venture (capital: 4 million yen, number of employees: 123) between Toyo Cotton Co., Ltd. and Toyo Rayon
Co., Ltd. In 1963, the company name was changed to Sanyo Chemical Industries.

1997

Sanyo Kasei (Thailand) Ltd. established.

2010

SANYO KASEI (TAIWAN), Ltd. established.

1999

Kinuura Satellite Factory, now Kinuura Factory,
began operations.

2015

SDP GLOBAL (MALAYSIA) SDN. BHD. established.

2017

GC Polyols Co., Ltd. established.

2001

San-Dia Polymers, Ltd., now SDP Global Co., Ltd.,established.

2018

Sanyo Chemical Manufacturing Korea, Ltd. established.

2003

Added Sunrise Chemical LLC as an affiliate.

2019

Sanyo Chemical Foundation for Social Contribution
established.

2020

Added APB Corporation as an affiliate.

San-Dia Polymers (Nantong) Co., Ltd. established.
Sanyo Kasei (Nantong) Co., Ltd. established.
Code of Corporate Ethics enacted.
2005

Sanyo Chemical Texas, Inc.,now Sanyo Chemical Texas Industries, LLC, established.

2007

SANYO CHEMICAL (SHANGHAI) TRADING CO., LTD.
established.

2008

Sanyo Kasei Korea, Ltd. established.
Katsura Research Laboratory began operations.

Consolidated net sales for FY2021

150,000

Kashima Factory began operations.

1977

San-Petrochemicals Co., Ltd. established.

Sanyo Oil & Fat Industrial Co., Ltd. established.

1978

Stock listed on the First Section of Tokyo and Osaka
Stock Exchanges.

1982

San Chemical Co., Ltd. established.

1989

SANAM Corporation,
now Sanyo Chemical America Incorporated, established.

Investment: 50% each by Toyo Cotton Co., Ltd. and Toyo Rayon Co., Ltd.
Capital: 4 million yen; Number of employees: 123

Research institute launched.

1960

Kawasaki Factory began operations.

1963

Corporate name changed to Sanyo Chemical Industries.

1966

SAN NOPCO LIMITED established.
San-Abbott Ltd., now San-Apro Ltd., established.

1968

120,000

90,000

Domestic net sales

1959

Overseas net sales

1949

1976
Tada Soap-Oleo Works established.

180,000

162,526 million yen

Tada Soap-Oleo Works at the time of its founding:
Located around the current Kyoto Factory

1907（million yen）

Stock listed on the Second Section of Osaka Stock
Exchange.
Nagoya Factory began operations.

60,00030,000

0

1949

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

Development of New Products

2021

（FY）

SANNIX raw material for polyurethane foams,
and PEG polyethylene glycol developed.

1972

HIMER toner resin developed.

1994

PELESTAT permanent antistatic agent developed.

1977

SANWET superabsorbent polymer developed.

1999

1963

ACLUBE lubricant additive developed.

1978

EIA diagnostic reagent developed.

POWERELEK electrolyte for electric double-layer
capacitors developed.

2011

1969

SANFLOC polymer flocculant developed.

1982

CARRYOL cold flow improver for fuel oil developed.

2000

Approved as a medical device business operator
for the first time.

1986

SANELEK electrolyte for aluminum electrolytic capacitors,
and SANMODUR chemical board developed.

THERPUS polyurethane beads for automobile interior raw
materials, and NAROACTY nonionic surfactant derived
from higher alcohol developed.

2012

New manufacturing process for raw materials
for polyurethane foams developed.

1992

UCOAT polyurethane emulsion developed.

2002

ULTIFLOW, EXCELFLOW, and PRIMEPOL raw materials
for polyurethane foams developed.

2014

2003

APEXNARROW polyester beads (intermediates for polymerization toners) developed.

HYDROFIT surgical hemostatic agent launchedas our first-ever medical device in Japan. (The overseas
trade name is AQUABRID®.)

2015

2004

LEVEFLOW SS agent for slurry excavation developed.

Magrapid magnetic particle
for EIA diagnostic reagents developed.

2005

EIA diagnostic reagent for small cell lung cancer developed.

2016

2006

LAUROMACROGOL 100 medical drug exclusively usedin manufacturing developed.

CALPROTECTIN MOCHIDA received
Japan’s first approval as an in-vitro diagnostic agent
for Ulcerative Colitis.

2007

HISTAT SK cutting fluid for silicon ingots developed.

2017

EMULMIN CS liquid laundry detergent base developed.

CHEMICLEAN PR cleaning agent for use in hard disk
manufacturing developed.

2019

ALPHAPUR HSG nonionic surfactant for skincare
developed.

2008

SphereLight proBNP clinical reagent for diagnosis ofheart failure developed.

2020

PIUSERIA AMC amino acid-type amphoteric surfactant
developed.

2009

SHARPFLOW raw material for polyurethane foams
developed.

1960

7

2015

* Disclosure of consolidated financial results started in FY1994
Full-fledged consolidated accounting started in FY1999

Sanyo Chemical Group Integrated Report 2022

2010

PELECTRON permanent antistatic agent developed.
SANWET SG superabsorbent polymer developed.

Sanyo Chemical Group Integrated Report 2022

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Profile

StrategyFoundation

Financial and Non-financial Highlights

Financial highlights

Non-financial highlights

Net sales（million yen）

〈Direct emissions (Scope 1) + Indirect emissions (Scope 2)〉*1■■ Operating profit■■ Direct emissions (Scope 1)

Operating profit to net sales（million yen）

180,000

15,000161,692 161,599

155,503

162,526
144,757

11,999120,000

CO2 emissions

Operating profit / Operating profit to net sales

10,000

7.4

12,9198.0

12,4398.0（％）(1,000 ton-CO2)

12.0

200

11,868
7.3■■ Indirect emissions (Scope 2)(1,000 ton-CO2)

3,000
176

11,9328.2

CO2 emissions〈Scope 3〉*2

165

172

182

150

2,764
2,540

146

8.0

2,804

2,287

2,358

2020

2021

2,000

100
60,000

5,000

4.0

164

148

139

126

130

2017

2018

2019

2020

2021

1,000

50

0

0
2017

2018

2019

2020

2021

（FY）

0
2017

2018

2019

2020

2021

Ordinary profit / Ordinary profit to net sales

Profit attributable to owners of parent / ROE■■ Ordinary profit■■ Profit attributable to owners of parent

Ordinary profit to net sales（million yen）（％）

18,00015.0

12,0008.6

9.4

12,704

11,99912,771

8.2

9,000
10.0

7.9

9,272
7.4

7,668
6.0

6,000

8.3
6,000

（％）

12,00015,205
13,866Return on equity (ROE)（million yen）

5,345

7,282
5.4

6,699

0

0

（FY）

（FY）

2017

0

0

0
2017

2018

2019

2020

2021

（FY）

2017

2018

2019

2020

2021

（FY）

Waste generated

Occupational accident frequency rate*3（t）(Frequency rate)

12.0

80,0009.0

60,0002.000

61,40060,8781.614
59,2021.500
53,50846,215

6.0

40,0001.000

3.0

20,000

0.500

0

0

0

4.7

4.1

2019

*2 Scope of data collection:
Cat. 1–7 : Sanyo Chemical Industries, Ltd., SDP Global Co., Ltd., and San Chemical Co., Ltd.
 anyo Chemical Industries, Ltd., SDP Global Co., Ltd., San Chemical Co., Ltd., andCat. 12 : S
some products sold by overseas subsidiaries and affiliates
Cat. 15 : Sanyo Chemical Industries, Ltd.

0.858

5.0
3,000

2018

*1	Scope of data collection: Sanyo Chemical Industries, Ltd., domestic subsidiaries andaffiliates, and overseas subsidiaries and affiliates with a manufacturing base

（FY）

2017

2018

2019

2020

2021

（FY）

0.558

2017

2018

0

0

2019

2020

2021

（FY）

*3	Frequency rate = (Number of employees subject to accident with lost time ÷ (total working
hours) × 1,000,000
This value indicates the generation frequency of accident victims (Group company employees) per 1 million hours.

Equity / Equity ratio

R&D expenses / R&D expenses to net sales

Number of employees / Female manager ratio*4■■ Equity■■ R&D expenses■■ Number of employees

Equity ratio（million yen）（％）

20,000
65.3

66.8

71.4

15,000130,099 129,371 127,635

71.8

72.2

140,474 144,479

10,000

80.0

60.0

40.0

R&D expenses to net sales（million yen）

（％）

8,000

3.7
3.3

3.4

5,365

5,569

6,000

3.4
5,322

5,384

4.0

(persons)

（％）

（％）

5.0

25.0

4.0

20.0

3.0

15.0

2.0

10.0

500

1.0

5.0

0

0

0

2,500

3.0

1,500

4,000

20.0

2,000

1.0

0

0

0

0

2019

2020

2021

（FY）

1,659

1,684

2.0

5,000

2018

4.0

2,000

1,000

2017

4.6

3.5
5,650

2017

2018

2019

2020

2021

（FY）

Female director ratio

Female manager ratio

1.7

2017

2.0

2018

1,672

1,700

22.2

1,705

3.0

2019

2020

2021

（FY）

10.0

10.0

2018

2019

10.0

0
2017

2020

2021

（FY）

*4	Scope of data collection: Sanyo Chemical Industries, Ltd.
(including loaned employees from Sanyo Chemical Industries, Ltd.)

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Profile

StrategyFoundation

Message from the President

Grow into a global, unique, and highly
profitable company where every employee
feels pride and satisfaction in his/ her work
Fiscal year 2021 (ended March 31, 2022) was my first year as president, and in March 2022, I announced
the new management policy, “WakuWaku Explosion 2030,” which was formulated over the course of about
one year. Under this management policy, we aim to promote businesses that support the environment,
people and their lives, and diversity in order to resolve many issues faced by the global community andachieve the dynamic growth of the Sanyo Chemical Group.
Meanwhile, prospects for the global economy are becoming increasingly uncertain due to Russia’s invasion of Ukraine and the resulting economic sanctions, in addition to the COVID-19 pandemic, which hasentered its third year. The Group, which is positioned downstream in the chemical supply chain, has neverexperienced such sudden fluctuations in naphtha prices in the past. I have to say that the current situation
is extremely difficult for the Group.

FY2021 business performance and future outlook
Net sales for FY2021 increased by 12.3% year on year, to 162,526 million yen. Operating profit was 11,868
million yen (a decrease of 0.5% year on year), and ordinary profit was 12,771 million yen (an increase of
6.4% year on year) mainly due to an increase in foreign exchange gains. Profit attributable to owners ofparent was 6,699 million yen (a decrease of 8.0% year on year) mainly due to a loss on valuation of investment securities.
While we hope that the impact of COVID-19 on social and economic activities will gradually diminish in
FY2022, trends in raw material costs and foreign exchange caused by the emergence of geopolitical risk
among other factors remain extremely unpredictable. Under these circumstances, we expect an increase insales and profits in FY 2022 by achieving 206,000 million yen in net sales, 12,500 million in operating profit,
13,000 million yen in ordinary profit, and 8,500 million yen in profit attributable to owners of parent throughprice revisions due to soaring raw material costs and expanded sales for high-value-added products.

Fatal accident at the Nagoya Factory in January 2022
On January 15, 2022, a fatal accident occurred on the premises of the Nagoya Factory. First of all,as a manager, I take this incident very seriously because fatal accidents should never occur. I went to the

Akinori Higuchi
Representative Director,
President and CEO

Nagoya Factory and prayed for the repose of the soul of the victim at the scene of the accident. Investigations by the relevant authorities are still ongoing. In addition to fully cooperating with them, we have established our own accident response committee to analyze the cause. The Group has had two fatal accidents
in the past, and we have taken specific measures to prevent a recurrence. However, I believe that there
is a fundamental cause behind the recurrence of such accidents. To prevent fatal accidents from occurring again in the future, I will take the lead as a manager in taking countermeasures while delving into theessential details, including any indirect factors that led to this accident.

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Profile

Message from the President

StrategyFoundation

WakuWaku Explosion 2030

To be a company completely committed to a “WakuWaku Future”

Management policy for Vision 2030 “WakuWaku Explosion 2030”“WakuWaku Future”

In the management policy “WakuWaku Explosion 2030,” we have defined a vision toward 2030 for our fur-

In formulating the new management policy, we have subtitled it as “To be a company completely committed

ther growth and have indicated the direction of transformation toward this vision. At the same time, we haveto a WakuWaku Future.” I will explain to our stakeholders why we have adopted the term “WakuWaku” andrenewed our slogan to “WakuWaku” and have adopted the term “Explosion” for the title of the new manage-

what it means.

ment policy with a strong desire for dynamic growth.

When we work hard toward the dream that we want to achieve in the future, we will feel excited about

We have also designed the 2024 vision, one of the milestones toward the 2030 vision. Based on this,we have reorganized our business activities into the three categories of “New growth path,” “Grow fromeven the toughest jobs. This is “WakuWaku” in my view. In order to overcome a series of difficulties, it isextremely important to raise the level of motivation. I believe that the source of motivation is “WakuWaku.”

core business,” and “Reformation of existing business,” and have embarked on initiatives to re-build andA good company can only be realized by clarifying its direction and goals and sharing these goals withreinforce the business portfolio. As I mentioned earlier, since it is extremely difficult to forecast prospects for

its employees and other stakeholders. However, no matter how earnestly I set out the vision of “growing into

the global economy in the short term, we have not set detailed numerical targets but have only used oper-a global, unique, and highly profitable company,” it will still be necessary to take time and go through theating profit and ROIC as management indicators. However, it is expected that medium- to long-term global

various stages before each and every employee is convinced of it. I hope that this vision will be translated

trends will continue to focus on responses to climate change and humanitarian issues. Accordingly, in this

into a true vision that becomes the source of “WakuWaku” for all employees, including those in the account-management policy, emphasis is placed on “environment” and “people and their lives” as fields to whiching, general affairs, HR, and other administrative departments. I believe that whether or not this is realized

we contribute through our business, and on “diversity” as the foundation that supports our business.

will determine the success or failure of our sustainable growth.

Each business unit has started operations aimed at achieving the 2024 vision. For details, please refer

Accordingly, I am currently having one-on-one dialogues with all general managers over the course

to the report on each business (pages 23-34). Although the report is still incomplete, I believe that the intro-of about three months. This is based on the idea that a “department” consisting of people who see each

duction of the seeds of a wide range of new products and part of our pipeline will help you understand ourother and share daily work in the same workplace is a team that can share the same vision, and that it isvision of being an innovator beyond the boundaries of chemistry with our chemical capabilities.

the general manager who leads the department. Each general manager should take the initiative to create
goals that are appropriate for their work and share them with all team members. The keyword for aligning
the vector of the entire company at that time is the idea that “Every department is a profit center.”

Overview of the management policy “WakuWaku Explosion 2030”

Vision (Transformation of business activities)

Grow into a global, unique, and highly profitable

Transformation of business activities
New growth path

VisionGrow from core businesscompany where every employee feels pride andsatisfaction from his/ her work

Reformation ofexisting business50.0

billion yen*
(ROIC 10%)

Activities to support the transformation
More safety and more comfort① “Build Smart Factory”: optimize the entire factory byconnecting people, products, and information② Ensure compliance and harmony with the environment

Work style reformation① Diversity, equity & inclusion (DEI)② Workplace reformation

Corporate functions to generate profits

New growthpath① Respect diversity and collaboration② Utilize intellectual capital③ Improve the quality of business operations

Corporate transformation by DX① Toward a creative work style

20.0

11.8
billion yen*billion yen*

Grow fromcore business(ROIC 5.5%)

Sustainability initiatives
Sustainability initiatives to support corporate activities

Current
business

Sanyo Chemical Group Integrated Report 2022

Growth through expansion and evolution of ourcore business domains

Acceleration of structural reform and business
transformation with an environmental perspective

Sustainability action plan

2021

13

Reformation ofexisting
business

Contribution on resolving social andenvironmental issues through the innovation
beyond the boundaries of chemistry

2024

2030

（FY） *Operating Profit

Sanyo Chemical Group Integrated Report 2022

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Profile

Message from the President

StrategyFoundation

WakuWaku Explosion 2030

To be a company completely committed to a “WakuWaku Future”“Every department is a profit center.”ple are always at the center of corporate activities. Accordingly, the most important thing in becoming a global
company is to increase the number of employees who can conduct business overseas in the same way as they

One accounting task is to consider how management accounting should be structured. Accordingly, thedo in Japan while playing a major role. To remove the barriers between domestic and overseas business opera-

team in charge of accounting may have the goal of changing the company by devising a system of man-tions and make overseas business trips more familiar, I would like to stop using the term “overseas” for businessagement accounting that is suitable for our vision and exchanging views with the management. Also, at thetrips to other countries and reconsider the necessity for approval for overseas business trips. I would also like tofactory that I visited the other day, I had the opportunity to talk with young employees, and they enthusiasti-

provide opportunities to employees who volunteer to conduct business overseas and go on overseas businesscally told me their thoughts on the kind of smart factory that they want to realize in the future. Although we dotrips. It will take time to cultivate global human resources by accumulating these steady efforts. However, I am

not know whether individual initiatives will work until they are implemented, the key to “WakuWaku Explosion

convinced that there is no shortcut to human resources development and that the Group can grow into a truly2030” is that all departments throughout the company get excited (“WakuWaku”) about the idea of changing

global company only with the will of the management and the enthusiasm of employees for creative work.

the company from their own department (team) and take on any challenges that they encounter.
By sharing the vision of the department (team) beyond daily routine work, the work of each employ-

Uniqueee becomes creative. I believe that whether or not this is realized will be the turning point and determine

The source of the Group’s uniqueness is its technology and products. By taking advantage of these factors,

whether we grow as a company or not. I also believe that only when all departmental teams become “One

we aim to become a highly profitable company.

Team,” the Group will be able to make the leap to become a global, unique, and highly profitable company.

When looking at the global chemical industry, I have to say that it is extremely difficult for Japanesecompanies that rely on imports for raw materials to develop mass production business models in the future
due to their poor cost competitiveness. In order to compete with companies in Europe and the U.S. andA global, unique, and highly profitable company

emerging companies in India and China, it is imperative to provide a large number of unique, competitive,
and high-value-added products.

GlobalOne of the Group’s major pillars is interface control technology, and we have always focused on its re-

Currently, the Group’s overseas sales ratio is 43%. Since the domestic market is shrinking due to the declin-

search and development. We will not change this approach in the new management policy. In addition, we

ing birthrate and aging population, it is expected that there will be more opportunities to develop businessplan to put particular focus on marketing activities for creating more markets in order to enable the develop-

in the global market in the future, resulting in an increase in overseas sales. However, I do not define wheth-

ment of a wide variety of products that are expected to have high added value even if they are niche products.

er a company is a global company by the amount of overseas sales or the number of overseas bases.

* WakuWaku Management: Our unique management method that intends to inspire the “WakuWaku” feeling of all stakeholders. We spotlight every employee to bring out theirindividual excitement (“WakuWaku”) and make them a leading player who contributes to value creation so that we can grow into a strong One Team in which all organizations are
profit-oriented. We develop activities to build a sustainable and better society towards a “WakuWaku Future.”

What underlies “WakuWaku Management”* as proposed in the new management policy is the idea that peo-

Activities to support the transformation “Every department is a profit center”

Direction aimed at by the transformation● Every employee of the Sanyo Chemical Group plays a leading role.

New growth path

● Promoting WakuWaku works by spotlighting everyone.

● Creating value from the perspective

Business Division

Affiliated Companyof environmental and social issues● Entering new fields throughstrategic alliances and M&A

Division● Lubricant Additives● Imaging Materials● Biotechnology & Medical

China● Surfactants

Thailand● Industrial Chemicals● Performance Materials● Acquiring world-leading

Korea● PolyurethaneJapan● Energy Business● Digital Olfaction Business

One Team● Beauty & Personal Care

Taiwan● Hiroshima● Audit15● General Affairs● ERP● Accounting● Planning● Financing● Production Planning● Procurement● Plant Engineering● Administrative Affairs (administration, sales, research)● Factories (Kyoko, Nagoya, Kinuura, Kashima)● Responsible Care

● Logistics

Sanyo Chemical Group Integrated Report 2022

perspective of environmental andsocial issues● Expanding our core businesses

globally● Strengthen competitiveness① CO2 capture/storage/utilization① Contribution to the reduction of
CO2 emissions② Peptide for agriculture

drastically from a social andenvironmental perspective● Strengthening competitivenessfrom a global perspective● Reformation of the overall supply

Support the environment,
people, and their lives

Support the environment① Electronic nose

● Review our business portfolio

chain and build smart factories

Contribution to carbon neutrality

Improvement of QOL

Reformation ofexisting businessthrough alliances

Support the environment

Support people and their lives

Production● Expanding businesses from theContribution to carbon neutrality② Energy management● Fukuoka

Headquarters
● HR

USA

Malaysia

Sales Offices● Nagoyatechnologies through joint
research with universities

Grow from core business② Contribution to the circularsociety
Support people and their lives

Improvement of QOL① Medical/Healthcare② Lifecare

Contribution to carbon neutrality
and improvement of QOL① Restructure conventional
business② Reform or withdraw unprofitableand environmentallyburdensome businesses③ Strengthen competitiveness inall global sites④ Establish the sustainable supply
chain

Sanyo Chemical Group Integrated Report 2022

16

Profile

Message from the President

StrategyFoundation

WakuWaku Explosion 2030

To be a company completely committed to a “WakuWaku Future”

Becoming an innovator beyond the boundaries of chemistrywith our chemical capabilities

Investment and shareholder returns
Growth investment

I believe that the chemical capability is limitless. The product groups that we are currently working on

In the announcement of financial results for FY2021, we reported that the amount of investment in plant andinclude compounds that contribute to improving the yield and quality of agricultural products, devices that

equipment for FY2022 will be 12,000 million yen. However, this does not include the investment in various

detect odors, and eel farming. Thus, we are developing unique products beyond the boundaries of chemis-

new products and new businesses set out in the new management policy and is mainly for ensuring thetry. I hope that the spread of these products will eventually make up for the declining working population insafety of aging facilities and improving their efficiency.

Japan and help with food shortages caused by pandemics and international conflicts.

Beyond the boundaries of chemistry
Cucumber cultivation is carried out at the Katsura Research Laboratory. This research aims to increase theyield by 1.5 times, and its effectiveness has already been confirmed in a plastic greenhouse in the labora-

As described in this report, although there are many seeds that will become growth drivers for theGroup in the next era, our activities aimed at dynamic growth have only just begun. In addition, since we
expect to create more projects in the future, we are unable to disclose the number and size of investment
projects at this time. I would like to report from time to time when each project takes shape.

tory. A demonstration experiment is currently being conducted in Miyazaki Prefecture, with which we have

Dividend policy

an association. The full-cycle farming of eels is also conducted at the Katsura Research Laboratory. We are

We believe that enhancing the return of profits to shareholders is one of the important management issues.

getting closer to success in the facility, and if successful, it will be a very rare example in the world.

We aim to improve our dividend payout in the medium- to long-term, targeting a consolidated payout ratio

The sensor developed by our company that visualizes odors has made it possible to identify what odorof 30% or higher, while comprehensively considering the allocation of resources necessary for sustainable

is even if the chemical substance causing the odor is unclear, which is the same function as the human

growth over the medium- to long-term, including investment in employees and safe facilities and reinforcing

olfactory sense. For the electronic nose, the Digital Olfaction Business Creation Dept. has been newly

the corporate base for the future through improvement in the Group’s profitability.

established as an independent department to cultivate its technology and expand sales channels throughThe dividend payout ratio for FY2021 was 56%, and the annual dividend per share was 170 yen.

marketing efforts.
Thus, we work to resolve issues faced by a completely new market for us by developing new products.

Here we present the first Integrated Report for the Group. Integrated Report 2022 has been compiled in

We are currently in the process of planting seeds for high-value-added products that will become growthcollaboration with many departments based on cross-departmental activities of the department in charge

drivers for the Group in the next era, taking advantage of the interface control technology that we havefor over a year, and has been reviewed and approved by the Board of Directors.

cultivated over many years and which is the source of our competitive advantage.

Since this is the first year of publication, we understand that there are many deficiencies. However, I
hope that this report will help our stakeholders understand the direction that we are aiming for. I would be

Evoking a “WakuWaku” feelingmore than happy if we could share the vision of the Group with you and have you feel “WakuWaku” together
with us.

Most of the members of the newly established “Digital Olfaction Business Creation Dept.” have been recruited through the internal multiple work system. Volunteers were recruited from throughout the entire
Group, including subsidiaries and affiliates, so that the work could be done with high motivation. Approxi-

September 2022

mately 15 people, mainly employees who have volunteered from various departments, have formed a teamto achieve the vision of the Digital Olfactory Business Creation Dept.
Many other projects have been launched with the theme of resolving issues faced by traditional industries in Kyoto. A considerable number of employees who have volunteered for each project are engaged in
the relevant project in parallel with their existing work. I will further expand this system, creating teams on
a department basis, to promote reforms to make the work in the Group even more “WakuWaku,” while also

Representative Director,
President and CEO

using the system for developing global human resources.
Above all, I would like all of our employees to work with “WakuWaku.” Although they will have a variety
of experiences, such as pleasant, tough, and even painful experiences, I believe that if they are engaged
in creative work that makes them feel “WakuWaku,” this will enable every department to be a profit center. I
hope that I can have a conversation in which our employees and I speak honestly about their work when I
meet them in the company.

17

Sanyo Chemical Group Integrated Report 2022

Sanyo Chemical Group Integrated Report 2022

18

Profile

StrategyFoundation

Sanyo Chemical Group Material Issues
We have identified six material issues based on our company mission “Establish a better society through our corporate activities.”
We address these issues while realizing “inspire WakuWaku feeling from all the stakeholders,” “co-create environmental,social and economic value with the stakeholders,” and “facilitate of every employee’s value creation.”

Material issues on business domain

Material issues on management domain

Environment

Society

Achieve carbon neutrality as Interface Innovator

Create innovations by supporting value creation of industry,
culture and education

Our approach

Our approach

Challenge beyond the boundaries of chemistry with our chemical capabilities

Contribute to carbon neutrality with the interface control technology● New batteries:

Develop functional agents● Power semiconductors:

Improve functionality on GaO-based
semiconductors● CO2 recovery:

Develop a new system by utilizing
interfacial chemistry● Plastic recycle:● Agriculture:

Reduce the environmental impact with peptide
agriculture

Develop agents for enhancing PP duration
during recycling● Fossil base materials:● Wind power:

Carbon fiber convergents for wind turbine blades● Automotive:

Replace to natural base raw materials
proactively● Utilize “UQ Chem” services to link unusedchemical knowhow to untapped needs● Support various traditional craft industries of

Kyoto with our chemical technologies● Promote collaboration and alliances with different fields and investment on startups● Promote DX and MI (Materials Informatics)● Carry our on-site chemical classes at elementary and junior high schools● Participate in the Kyoto Super SDGs Consortium with Kyoto University

Improve gasoline consumption with lubricant additives
Increase the efficiency of energy use with aluminumelectrolytic capacitors

Society

Develop human resources and improve work environment
by recognizing diversity

Life

Our approach

Improve QOL by performance through chemistry

Diversity, equity & inclusion (DEI): Facilitate WakuWaku culture● Promote women’s

Our approachcontribution

Create value in the medical field through new technologies● Heart disease therapy:

Develop safe hemostasis with abiotic-derived hemostat● Clinical diagnostic reagents:

Develop prompt diagnostic reagents to reduce the burden of patients● Promote LGBTQ● Intractable diseases:

understanding● Join the IKUBOS corporate alliance● Promote health management● Introduce an internal multiple work

system● Enhance communication between management and employees:

Morning meetings (lectures to all employees), Camps (discussions withsenior general managers), One on One (dialogue with general managers),
Dojo (hand down to managers), and Salons (dialogue among mid-level andyoung employees)

Develop functional proteins for wound and knee joint healing● Regenerative medicine:

Improve production efficiency of mesenchymal stem cells

Governance

Create new value that is closely linked to people’s lives● Visualization of smells:

Develop innovative electronic nose

● People friendly products:

Conduct the risk management thoroughly by strengthening the Guardian function

Develop cosmetic ingredients using natural origin raw materials

Our approach● Strengthen quality governance by isolating quality assurance from production● Strengthen the legal compliance system● Establish a management system for reputation risks which may be critical to● Strengthen the safe and healthy system by utilizing

corporate value

the safety education center

Governance

Implement challenge-oriented and transparent management
Our approach● Promote “WakuWaku

Management”:
Every department shall be
profit-oriented

19

Sanyo Chemical Group Integrated Report 2022

● Diversify directors:

Women directors (22→30%) andoutside directors (>1/3).

● Disclose the skills matrixof directors● Enhance disclosure of

non-financial information● Enhance dialogue with shareholders,

employees, and other stakeholders● Establish the Sustainable Management

Committee

Sanyo Chemical Group Integrated Report 2022

20

Profile

StrategyFoundation

FeatureOdor sensing system“Electronic nose”

space attributed to diseases and changes in the lifestyle

the moromi state, two reactions proceed simultaneously.
Specifically, the yeast decomposes sugar into ethanol,

can be detected using electronic nose. Unlike gas chro-

while aroma components specific to sake are generated

matography (GC), electronic nose do not require mainte-

The development of electronic nose started from the idea of “creating a device that mimics

as a by-product. The progress of these reactions chang-nance and replacement of expensive parts by engineers

the human nose” three years ago. In April 2022, the Digital Olfaction Business Creation Dept.

es depending on the fermentation conditions, such as

who have expertise in using and maintaining equipment.

was established as a separate in-house organization. It aims to commercialize the businessthe product temperature of the moromi. In-depth analysis

Thus, we have started consultations with customers for

in FY2023 by creating new markets in such fields as food and agriculture, environment andof components of these reaction products is expected tovarious applications, including monitoring services forindustries, personal and life care, and support for achieving high added value to cope withimprove the quality of sake. As discussed above, howev-

elderly persons at nursing care facilities and hospitals or

manpower shortages, improve productivity, and contribute to new customer experience.

er, it is unrealistic to conduct chemical analysis frequent-

at home.

ly. Products are manufactured based on partial chemical

Expressing “odors” comprising mixturesof various volatile organic compounds indigital data

analysis using limited techniques available and the sen-

Quality control of chemicals

sory experience of brewing engineers (at small brewing

As one of Sanyo Chemical’s core businesses, we also

companies in particular). We may be able to contribute

manufacture and sell raw materials for cosmetics, suchfor the function of olfactory receptors and AI for the func-

to reducing the workload and pass on the skills if theas shampoos. Raw materials of the identical specifica-tion of the brain. We aim to contribute to various fields

experience of brewing engineers can be recorded astions may have different odors depending on the country

with such “digital olfaction.”

digital data using electronic nose. In the autumn of 2021,

of origin of the materials. Electronic nose is highly prom-

we embarked on joint research with a brewing company

ising for quality control when odors are important charac-in Fushimi, Kyoto. We have found the possibility of es-teristics of products.

It is known that most odors which can be perceived by

Successfully identify odors using ourdeveloping elemental technologies

the human olfactory organ (nose) (e.g., smell of fruits
and beverages, odors derived from physiological phenomena, such as body odor, odor of industrial products)

timating ethanol by volume and concentration of somearoma components by measuring the odors of moromi

Future robots might have a “nose”

during fermentation using electronic nose and process-consist of mixtures of many volatile organic compounds

We develop mainly three elemental technologies: (1) vari-ing the measurement data using AI. We will study the(VOCs). From a chemical viewpoint, the characteristics ofous types of “odor detection chips,” which correspond topossibility of applying the technology to management of

The Digital Olfaction Business Creation Dept. has aodors can be explained by the composition ratio of VOC

olfactory receptors (see the figures in the center and on

sake and various fermented foods.

future vision to further improve the accuracy and reduce

mixtures. However, to investigate compounds contained

the right below), (2) “sensing systems,” which accurately

in a corresponding odor sample and its concentration

expose odor samples to odor detection chips and record

Monitoring service for helping daily life

requires fundamental chemical analysis techniques,

electrical changes in physical properties that occur inElderly persons who live alone need monitoring byof sound, light and other physical stimulus. The function-

including gas chromatography (GC). Thus, analyzing

the respective chips (see the figure above (a prototype

someone else. However, it is difficult to set up a camera

ality of robots can be expanded by adding the informa-odors (on-site analysis in particular) has difficulties inunder development)), and (3) “AI,” which identifies odor

in a private space. Both privacy and security can betion of odors. Robots are expected to take active roles interms of both technology and cost. In the olfactory sense

samples based on the changing patterns of physicalattained, for example, if changes in odors in the living

many more applications.

of humans, each of about 400 types of olfactory recep-

properties derived from the chips (see the figure on thetors interacts with VOCs moderate-selectively and revers-

left at the bottom). We also maximize the value of these

ibly, which have specific chemical structures (including

elemental technologies for respective users and propose

similar structures), and the brain receives information as

the concept of our electronic nose by developing mea-electric signals. The brain can process the responses

surement techniques and offering technical support toof respective olfactory receptors as patterns, achieving

meet various needs of odor measurement.

sophisticated identification of odors with a small olfactoryorgan. “Electronic nose” developed by Sanyo Chemical

Monitoring of the food fermentation process

performs functionality similar to that of the human olfacto-

One typical example of food manufacturing using thery sense by using the proprietary chemicals composition

fermentation process is sake brewing (moromi state). In

the size of electronic nose and build sensors into robots.
At present, most robots operate based on the information

Digital Olfaction Business Creation Dept.
At present, the Digital Olfaction Business Creation Dept.,
operated under the presidential management, consists of 18
full-time researchers and 15 marketing team members, who
use the internal multiple work system. The members whoare engaged in R&D experience “WakuWaku” (a Japaneseword that means a positive, bright, up-lifting feeling inspiredby inner motivations and/or one’s own will) in developing

new products. Meanwhile, members in charge of marketing
experience “WakuWaku” in creating new businesses, meetingnew customers in search of new buyers, and discussing new
topics.
The Digital Olfaction Business Creation Dept. aims tocommercialize its business in FY2023 and will contribute to thebusiness performance of the company in several years.

Activity plan

2022
1

2023
2

3

4

5

6

7

8

9

10

11

12

1

2

3

4

5

6

7

8

9

10

11

12

Offering samples and receiving feedback in the respective fields of food and agriculture, environment and industries,
personal and life care, and support for achieving high added value
Small-scale production
preparation toward commercialization of products

21

Data output from respective chips

Odor detection chipIntegrated sensor probe

A sensor probe comprises multiple detection chips, and therecorded data contains as much as the number of the chips.

The odor detection chip can identify
odors with high accuracy based ona proprietary composition design.

A sensor probe comprising multiple detection chips
which integrated on a single circuit board, that can beapplied with a wide range of odors and use cases.

Sanyo Chemical Group Integrated Report 2022

Aiming for horizontal deployment incustomersʼ industries
Commencement of offering products to initial customers

Sanyo Chemical Group Integrated Report 2022

22

Profile

StrategyFoundation

Business Overview

Toiletries and
Health Care

Main products

Net sales

Operating profit■ Health Care

(Billion yen)(Billion yen)Superabsorbent polymers (SAP),

90.0

germicides/disinfectants,
surgical hemostatic agents,
clinical diagnostic reagents for enzyme
immunoassay (EIA),
potting resins for artificial kidneys

76.5
60.0

55.2

0

Net sales of this segment were 54.922 billion yen (increased by 1.1% year on year),and operating profit was 1.708 billion yen (decreased by 46.5% year on year).

1.1

Reformation of existing business
Improvement of profitability by reviewing the sales
portfolio of SAPs

2019

2020

2022 (FY)(Forecast)

2021

2018

2019

2020

2022 (FY)(Forecast)2021* For FY2022 and beyond, the method of allocating the research and development expenses
for new businesses which are not appropriate for reportable segments has been revised.
(Research and development expenses not subject to allocation: 1.8 billion yen in FY2022)

als which do not pose risks of virus infection,*1 geneticallyengineered artificial proteins, the first of its kind in Japan,*2
cleaning agents for the digestive tract which are used
before a colon examination,*3 and functional materials to

Superabsorbent polymers (SAPs) for paper diapers, which

properly deliver medicine to affected areas.*4 We will con-

we currently manufacture at SDP Global Co., Ltd., which is

tribute to advanced medical care by offering these uniqueIn the Health Care segment, although there was a temporary drop in sales of super-

one of our production sites in Japan, and other production

products derived from our proprietary technologies.

absorbent polymers in the mainstay Chinese market due to a rapid production ad-sites in Malaysia and China, are our mainstay products.

*1 Specially controlled medical devices

San Chemical Co., Ltd.

justment resulting from energy shortages, this was followed by a recovery. Net sales

We are ranked sixth in the global market, accounting for

decreased by 628 million yen to 40.703 billion yen.

about 10% of the market share. Although the sales volume

before diagnosis

SAN NOPCO LIMITEDSDP GLOBAL (MALAYSIA)
SDN. BHD.
(Related to multiple segments)

San-Apro Ltd.
Sanyo Kasei (Thailand) Ltd.
Sanyo Kasei (Nantong) Co., Ltd.

Health Care

Toiletries*2 Artificial protein: silk–elastin*3 MACROGOL, a medication base material used for cleaning the digestive tract*4 Application of polyethylene glycol derivativesof SAPs for paper diapers is high, intensifying price com-

Global deployment of the surfactant businesspetition is unavoidable due to the improved performance

Regarding surfactants, which are raw materials for deter-

In the Toiletries segment, sales were strong due to a surge in sales of polyethyleneof competitors’ products and commoditization. Against

gents and body care products, we have been promoting

glycol both in Japan and overseas and a recovery in papermaking chemicals. Net

this backdrop, we have been reviewing our sales portfolio.

production at appropriate global sites. Efforts have beensales increased by 1.248 billion yen to 14.219 billion yen.

We have been making efforts to improve profitability bymade to establish a supply system for Southeast Asia andshifting our buyers to other regions, including China andChina, where demand for high-value-added products,

emerging countries, where we can take advantage of oursuch as low stimulation shampoos, is expected to con-strength in engineering capabilities, which we have devel-tinue to expand. We are shortly planning to newly invest

oped over many years, and our production sites.

one billion yen in a production facility at Sanyo Kasei

Topics

A capital and business alliance formed
with ROHTO Pharmaceutical
Conventionally, Sanyo Chemical has been committed to opening the markets in growthfields, such as cosmetics, biotechnology and medical, agriculture and nutrition, andenergy and electronics. Recently, we have formed a capital and business alliance with
ROHTO Pharmaceutical Co., Ltd. to promote collaboration in the medical field, suchas utilization and application of several materials in the skin care and cosmetics fields,
production and research of mesenchymal stem cells in the regenerative medicine business, and new medical devices.
This capital and business alliance aims to utilize the resources of each other todevelop proprietary raw materials and apply them to new functionalities and different
industries, thereby expanding business and enhancing corporate value.

23

1.7

1.5

0
2018

agents for papermaking

San-Dia Polymers (Nantong)Co., Ltd.

3.1

2.8

54.9

1.4

surfactants for hair care products,

SDP Global Co., Ltd.

54.3

30.0

Surfactants for detergents,

Operating results in FY2021

53.7

2.1

■ Toiletries

Affiliated companies

4.2

raw material for pharmaceuticals,

Sanyo Chemical Group Integrated Report 2022

(Thailand) Ltd. The construction of the facility will start by
December 2022. Trial operation is scheduled for the third

Grow from core businessAccelerating the development of new products inthe medical field

quarter of FY2023, and the commencement of commercial
production is scheduled for the first quarter of FY2024.
With the launch of a new production facility, Sanyo
Kasei (Thailand) Ltd. will contribute to improving the QOL

We also focus on the development of new products thatof people in China and Southeast Asia by spreading theare expected to add high value to SAPs. Since we be-use of high-functionality shampoos and facial cleansers,

came the first company in the world to start commercial

whose performance, including foaming and texture, isproduction of SAPs in 1978, we have developed high-val-enhanced. The company expects to attain an increase inue-added SAPs to meet various needs. Recently, we have

net sales of 340 million yen and an increase in operating

developed a purification method to recover exosomes,

profit of 25 million yen in five years.

which are biological substances that transmit various types

We will further enhance communication with over-of information between cells, with high accuracy and yield,

seas sites, deepen understanding about local businessthrough co-creation with a research group of Tokushimapractices, and formulate strategies with a view to solving

University. We have many other pipelines for the medical

local social issues in order to grow as a global company.

field, including non-biological surgical hemostatic materi-

Sanyo Chemical Group Integrated Report 2022

24

Profile

StrategyFoundation

Business Overview

Petroleum andAutomotives

Main products

Net sales

Operating profit

Thermoplastic polyurethane beads for theinterior parts of automobiles (TUB),(Billion yen)(Billion yen)

raw materials for polyurethane foams (PPG),

90.0

4.2

additives for fuel oil,60.0

water-soluble cutting oil,halogen-free cleaning agents,base materials for synthetic lubricants,

3.8

3.7

lubricant additives,

43.1

2.8

51.5
42.7

30.0

37.3

3.0

3.3

3.2

2020

2021

42.5
1.4

paste resins for design models,
resins for automobile paints

0

0
2018

2019

2020

2022 (FY)(Forecast)

2021

2018

2019

2022 (FY)(Forecast)* For FY2022 and beyond, the method of allocating the research and development expenses
for new businesses which are not appropriate for reportable segments has been revised.
(Research and development expenses not subject to allocation: 1.8 billion yen in FY2022)

Affiliated companies
Sanyo Chemical Texas Industries, LLC
Sanyo Chemical Manufacturing Korea, Ltd.
(Related to multiple segments)

Operating results in FY2021

Grow from core businessbeads for the interior parts of automobiles remained flat, but the raw material for

Further improving fuel efficiency through the development of new VIIs for lubricating oil

polyurethane foams used in automobile seats and other applications and lubricant

Focusing on the development of VIIs for automotive lubri-

additives, whose global demand has been growing, remained strong. The price of

cating oil, Sanyo Chemical will continue to contribute to

In the Petroleum and Automotives segment, sales of thermoplastic polyurethane

products increased in line with the significant increase in the price of raw materials,

saving energy through the development of new products

San Chemical Co., Ltd.

among other factors, resulting in a considerable increase in net sales. Consequently,

which help further improve fuel efficiency. To meet the

SAN NOPCO LIMITED

this segment posted an increase in net sales and a decrease in operating profit.

growing global demand for VIIs, we have newly invested

San-Apro Ltd.
Sanyo Kasei (Thailand) Ltd.

Specifically, net sales were 42.54 billion yen (increased by 14.0% year on year),while operating profit was 3.265 billion yen (decreased by 3.0% year on year).

Sanyo Kasei (Nantong) Co., Ltd.

in South Korea, following Japan and China, and estab-of seating comfort and low-noise performance by taking
advantage of our know-how in polyurethane chemicals
used in automobiles and interior parts of automobiles
that we have refined through many years of operations.
* MaaS (Mobility as a Service) refers to a service which enables users to search,book, and pay for mobility services in a batch by optimally combining multiple
public transportation services and other mobility services to meet the mobility
needs of respective local residents and tourists in the unit of trips (source: websiteof the Ministry of Land, Infrastructure, Transport and Tourism).

Reformation of existing businesslished an additional production site. We have also beenworking on the development of additives for lubricating

Regarding polyurethane chemicals used in automobiles

oil optimized for HVs/EVs.

and thermoplastic polyurethane beads for the interior

Regarding non-automotive products, we will de-parts of automobiles, which are part of our mainstay

velop environmentally friendly additives for improving

products, we will promote activities to increase profit-

ACLUBE series lubricant additives (VIIs* )Contributing to coping with energy problems
and climate change

the performance and optimizing the thermal efficiency

ability, including optimization of production efficiencyof lubricant and hydraulics, which are used in various

through integration of product types, and thereby stream-

fields, including vessels, agricultural machines, refrig-

line our operations to ensure proper profit. Througherators, and biodiesel engines. Regarding our intellec-

GC Polyols Co., Ltd., a joint venture established by

Various measures to reduce CO2 emissions have been implemented in the automotive
industry. Our ACLUBE series, which represents PMA*2-based viscosity index improvers for engine oil, is specially designed to form an oil film with the increase in viscosity
when the temperature is high to prevent seizure. It can keep the oil viscosity low when
the temperature is low, achieving further improvement in fuel efficiency.
At present, the ACLUBE series has the top share for PMA-based additives in Japanand the second largest share outside Japan. The products contribute to coping withenergy problems and climate change by increasing the fuel efficiency and reducing theCO2 emissions of vehicles around the world.

tual property strategy, we have started to explore new

PTT Global Chemical Public Company Ltd. and Toyota

themes by using a technique called IP landscape. We

Tsusho Corporation, we aim to expand our business forhave identified candidate themes for applications otherJapanese-affiliated automotive manufacturers, whichthan lubricant. We will deploy our business by using ourlaunched into Asian countries, and optimize our produc-

fundamental technologies.

tion sites from a global viewpoint.

Product topics
1*1 Viscosity index improvers (VIIs): It is added to engine oil to reduce temperature dependence of its viscosity.
*2 There are two types of VIIs: OCP-based and PMA-based. PMA-based additives can keep viscosity low even at
low temperature compared to OCP-based additives.

In the urethane business, we will work on recycling ofurethane foam, which has emerged as a social issue, incollaboration with customers, to contribute to reducing
waste.

Activities to support people and their lives
In line with the progress in MaaS,* we will contribute tocreating a comfortable cabin space based on the concept of “mobility as a movable private space.” We willseek to create a sense of luxury through the improvement

25

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Profile

StrategyFoundation

Business Overview

Plastics andTextilesMain products

Net sales

Operating profit■ Plastics(Billion yen)(Billion yen)

Permanent antistatic agents,

90.0

4.2

pigment dispersants, resin modifiers,
paint resins, defoaming agents,
raw materials for polyurethane elastomers,

3.9
3.3

60.0

2.8

3.0

3.3
2.7

chemical boards for models■ Textiles

30.0

Chemicals for textile manufacturing,chemicals for carbon fibers,

22.1

21.4

20.8

2018

2019

2020

SAN-PETROCHEMICALS CO.,LTD.

Net sales of this segment were 25.466 billion yen (increased by 22.4% year on year),

Sunrise Chemical LLC

and operating profit was 3.346 billion yen (increased by 23.7% year on year).

(Related to multiple segments)

Plastics

Grow from core business
Activities to support the environment

2019

2020

2022 (FY)(Forecast)2021* For FY2022 and beyond, the method of allocating the research and development expenses
for new businesses which are not appropriate for reportable segments has been revised.
(Research and development expenses not subject to allocation: 1.8 billion yen in FY2022)

we have been working to open up new markets while
taking into account the possibility of further expanding
the production facility depending on future demand. In
addition to permanent antistatic agents, we have many
resin additives and adhesives which have proprietary

additional investments in production facilities for sizing

functions. We will continue to take on challenges to develop new materials.

agents for carbon fibers so that we can underpin the

SAN NOPCO LIMITED

strong, and overseas demand for paint resins and additives as well as resin modifiers

expanded use of renewable energy in terms of materials.

San-Apro Ltd.

used as paint binders recovered. Thus, net sales increased significantly by 3.148

Global demand for carbon fibers is expected to expand

billion yen to 18.532 billion yen.

in markets other than wind power generation. We will

Textiles2018

are used for blades of windmills, we will actively makeIn the Plastics segment, sales of our mainstay permanent antistatic agents remained

Sanyo Kasei (Nantong) Co., Ltd.

2022 (FY)(Forecast)2021

To meet the growing demand for carbon fibers which

San Chemical Co., Ltd.

Sanyo Kasei (Thailand) Ltd.

1.40polyurethane resins for artificial andsynthetic leather

Operating results in FY2021

31.5

0

chemicals for fiberglass,Affiliated companies

25.4

Reformation of existing business

contribute to the overall industry by taking full advantage
of Sanyo Chemical’s strength in additives.

Business operations related to paint and ink resins,

In the Textiles segment, sales of chemicals for carbon fibers increased, and sales of

We have also been deploying solvent-free water-which we have dealt in for many years, will be integrated

polyurethane resins for synthetic leather and elastomer fiber used in automobiles andborne paint resin from a global viewpoint. Regarding

and consolidated by SAN NOPCO LIMITED, which is one

the spin finish oil used in the manufacturing process of tire cord yarns and other items

polyurethane dispersion, which is our main product ofof our group companies, to deepen the business strate-

were strong. Net sales increased significantly by 1.515 billion yen to 6.934 billion yen.

waterborne paint resin, we will collaborate with BASF togies from the viewpoint of customers and accelerate thejointly develop and manufacture innovative and environ-

shift to high-value-added products.

mentally friendly products and access the global market
Product topics

through global production sites of the two companies.
We have also been promoting research and devel-

PELESTAT and PELECTRON, permanent antistatic agents
Preventing problems caused by static electricity

opment to apply our technologies to material recycling.

The PELESTAT and PELECTRON series are permanent antistatic agents that are kneaded into plastics. Conventional low-molecular antistatic agents deposit on the surface ofplastics to exhibit antistatic performance. However, they posed two issues: impermanent effect and surface contamination. The PELESTAT and PELECTRON, permanent
antistatic agents form conductive circuits in plastics to attain long-lasting and clean
antistatic performance. Due to such characteristics, the PELESTAT and PELECTRON
series are used for air conditioners and other electric home appliances, inner bag films
for explosion-proof flexible container bags, and transport trays and packaging films fordelicate electronic parts which require sustained effects and cleanliness. The scope of
application is expected to expand to medical and other purposes by taking full advantage of their cleanliness.

recycled polypropylene resins.

We are studying the possibility of developing products,
including chemicals to improve the physical properties ofActivities to support people and their lives
To meet the growing demand for permanent antistatic
agents, which are applied to various industrial fields,such as electronic parts and packaging materials, welaunched a new production site at the Rayong plant of
Sanyo Kasei (Thailand) Ltd. The production site went
into full scale in July 2022. Because permanent antistatic
agents are our unique and high-functionality products,

27

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Profile

StrategyFoundation

Business Overview

Information andElectrics/
Electronics

Main products

Net sales

Operating profit■ Information(Billion yen)(Billion yen)

Polyester beads used as a core componentof polymerization toners (PEB),
toner binder

90.0

4.2

60.0

4.0
2.9

2.8

2.9

■ Electrics/Electronics

Electrolytes for aluminum electrolytic
capacitors,

2.1
30.0

22.7

20.9

2018

2019

adhesives for electronic parts,
chemicals for use in electronic parts
manufacturing,

17.0

20.9

1.4

1.4

25.0

0

0

UV/EB curing resins

2020

2022 (FY)(Forecast)

2021

2018

2019

2020

2022 (FY)(Forecast)2021* For FY2022 and beyond, the method of allocating the research and development expenses
for new businesses which are not appropriate for reportable segments has been revised.
(Research and development expenses not subject to allocation: 1.8 billion yen in FY2022)

Affiliated companies
APB Corporation(Related to multiple segments)
San Chemical Co., Ltd.
SAN NOPCO LIMITED
San-Apro Ltd.
Sanyo Kasei (Thailand) Ltd.
Sanyo Kasei (Nantong) Co., Ltd.

Operating results in FY2021
Net sales of this segment were 20.989 billion yen (increased by 22.8% year on year),and operating profit was 2.11 billion yen (increased by 46.6% year on year).

Grow from core business
Activities to support the environment
In the Information segment, we have been working on

course of the adhesive business for touch panels. We will
globally deploy the photoacid catalyst business for thesemiconductor industry, which is the main business of
San-Apro Ltd.

energy saving by improving the copier toner materials

Meanwhile, polyurethane dispersion is likely to con-in which Sanyo Chemical has strength. In a copier, tonertribute to improving the performance of devices throughIn the Information segment, office printing demand, which had stagnated due to theis fixed by applying heat momentarily. We will contributereplacement or combination with conventional materials

COVID-19 pandemic, recovered, and sales of polyester beads as a core component

to reducing power consumption by developing toners

for various electronic materials in this segment in addi-

of polymerization toners and pulverized toner resins were strong. As a result, netthat can be fixed at low temperature. From the viewpointtion to waterborne paint resins discussed in the Plastics

sales increased significantly by 2.386 billion yen to 11.759 billion yen.

of contributing to material recycling, we consider the

and Textiles segment. Thus, we will actively make pro-possibility of utilizing recycled resins as raw materials forposals by launching a website for introducing resins andtoners.

functional chemicals.

Information

Electrics/Electronics
In the Electrics/Electronics segment, sales of raw materials for resists, which are used

In the Electrics/Electronics segment, demand forin manufacturing semiconductors, remained strong due to ongoing high demand forhighly functional aluminum electrolytic capacitors has

semiconductors. Sales of resins for flat panel displays (FPDs) also increased signifi-

been growing because vehicles have been increasingly

cantly. Net sales increased by 1.506 billion yen to 9.229 billion yen.

electrified, as exemplified by the widespread use of EVs

Product topics

SANELEC, electrolytes for aluminum electrolytic capacitors
Long-run products which underpin the widespread use of
EVs and smart home appliances
There are three types of capacitors, which are built into all electrical and electronic
devices: ceramic capacitors, film capacitors, and electrolytic capacitors. Notably, manyelectrolytic capacitors, which can store a large amount of electricity, are used in power
supply circuits of EVs, air conditioners, and industrial equipment, among others. Products using aluminum, which is inexpensive and characterized by superb workability,
are in the mainstream. However, electrolyte leakage was the biggest issue faced by thecapacitor industry.
SANELEC solved the problem of electrolyte leakage by using a proprietary structure. Since its development in the mid-1990s, SANELEC has been used in various fields
and has become a long-run de-facto-standard product.

Reformation of existing businessand the development of automated driving vehicles inIn the Information segment, the toner market has be-

pursuit of safety and security. We will make contributions

come increasingly mature due to the spread of telecom-in terms of materials by building a system for increasing

muting and paperless operations at offices. We ensure

the production and supplying electrolytes for capacitors.

proper profitability by creating added value based on

Regarding new research and development, we will offer

the engineering capabilities that we have developed in

added value to the market from the viewpoint of reducing

addition to making efforts to cut costs, including optimi-

the environmental impact.

zation of production facilities. Meanwhile, we will promote

Activities to support people and their lives

the development of products for new applications, suchas inkjet and textile printing.

In the Information and Electrics/Electronics segment,
we focus on various devices that help make people’s
lives more comfortable. For smartphones, liquid crystal
displays have been increasingly replaced by organic
EL displays (OLEDs) due to their advantages, including
the charging time, image quality, and lightweightness.
We actively promote the development of materials for
OLEDs, with the possibility of forming alliances taken
into account, by utilizing the know-how refined in the

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Profile

StrategyFoundation

Business Overview

Environmental
Protection,
Construction andOthersMain products

Net sales

Operating profit

Polymer flocculants for wastewater
treatment,(Billion yen)(Billion yen)

60.0

2.8

cationic monomer,
PPG for furniture and heat insulating
materials, slurry chemicals,

90.0

4.2

reactive hot-melt adhesives,
raw materials for building sealants,
cement chemicals

30.0
18.2

16.5

15.2

18.6

2018

2019

2020

2021

1.4

21.5

0

1.2

1.1

1.2

2018

2019

2020

1.6

1.4

0
2022 (FY)(Forecast)

2022 (FY)(Forecast)2021* For FY2022 and beyond, the method of allocating the research and development expenses
for new businesses which are not appropriate for reportable segments has been revised.
(Research and development expenses not subject to allocation: 1.8 billion yen in FY2022)

Affiliated companies

Operating results in FY2021

Grow from core business

Reformation of existing businessIn the Environmental Protection segment, sales of cationic monomers for polymer floc-

In the Environmental Protection and Construction seg-

Polymer flocculants, raw materials for building sealants,

culants for overseas markets increased, resulting in a significant increase in net sales.

ment, we aim to maximize the business value by solving

and raw materials for polyurethane foams mainly used

In the Construction segment, sales of both raw materials for building sealants and raw

sustainability issues, which are faced by customers infor furniture and heat insulating materials, all of which

San-Apro Ltd.

materials for polyurethane foams, which are mainly used for furniture and heat insulat-

the resource/environment and next-generation infrastruc-have been our mainstay products, have been increasing-

Sanyo Kasei (Thailand) Ltd.

ing materials, remained strong. Thus, net sales increased significantly.

ture fields, and achieving social changes with customers.

ly commoditized. Thus, we will optimize profit primarily(Related to multiple segments)
San Chemical Co., Ltd.
SAN NOPCO LIMITEDSanyo Kasei (Nantong) Co., Ltd.

As a result, total net sales in this segment were 18.607 billion yen (increased by
22.1% year on year), and operating profit was 1.437 billion yen (increased by 17.2%
year on year).

Product topics

31

Activities to support the environment

products. Meanwhile, we aim to expand our business by

We will take full advantage of our technologies to contrib-

offering high-value-added products based on proposals

ute to environmentally friendly agriculture (e.g., develop-

for solutions integrating our proprietary water treatment

ment of biodegradable materials for fertilizers) and envi-

technologies and by forming alliances with suppliers.

ronmental conservation activities (e.g., desert greening,
wastewater purification), the development of chemicals

LEVEFLOW series, additives used in
manufacturing cement panels
Sanyo Chemical’s products indispensable
to maintain fluidity and shape retention properties

that contribute to the widespread use of biomass fuel,Recently, cement panels commonly known as sidings, which are made mainly from
cement, have been increasingly used for outer walls of single-family detached homes.
The manufacturing method called the extrusion method can reduce the weight because
cavities can be created inside. Cement panels can also be used in combination withheat insulating materials. Cement panels with high design quality can be created byadding rough patterns.
The LEVEFLOW series, our acrylic-acid-based additives for manufacturing extrusion-molded cement panels, take active roles to adjust the balance of appearance,
shape retention properties, and productivity. The products are characterized by lubrication, water retention, shape retention, and thickening functions.

tural production (e.g., development of new chemicals

Sanyo Chemical Group Integrated Report 2022

by reviewing the production process and consolidating

and reduction of waste, in particular.

Activities to support people and their lives
We will contribute to improving the efficiency of agriculfor fertilizers) and deployment to the next-generation
infrastructure field (e.g., development of chemicals that
contribute to achieving high functionality of cement andchemicals for low-carbon cement).

Sanyo Chemical Group Integrated Report 2022

32

Profile

StrategyFoundation

New Growth Path
The Sanyo Chemical Group aims to create new value from the viewpoint of environmental and social issues through inno-

Support the environment

Support people and their lives

vation beyond the boundaries of chemistry with our chemical capabilities. We have been working to create new businesses

Contribution to carbon neutrality

Improvement of QOL

quickly to acquire world-class strengths by taking on challenges to open up new fields based on strategic alliances andM&As and combining our various technologies and know-how, including interface control technology, with external findings
through joint research with universities.

New business creation system“UQ chem,” a matching platform that links
unused chemicals with needs

The Business Planning Division is in place under direct

Electronic nose

We have been studying the possibility of applying our

We have been working on the development of electronic

know-how to design and manufacture ionic liquids, which

nose to improve the quality of food, health and life by

are used as electrolytes for aluminum electrolytic capac-

visualizing odors. In April 2022, we established a newitors, to efficient systems to capture, use, and store CO2.

organization which has both research and development

We aim to separate CO2 from flue gas by using ionicand marketing functions to commercialize the business.

liquids capable of absorbing CO2 even at a low pressure

Peptide for agriculture

control of the president to create new businesses. The di-

Sanyo Chemical started the test operation of the “UQ

close to the atmospheric pressure. Eventually, we will

vision consists of the Business Planning Department andchem” service, a matching platform to offer new value by

apply such ionic liquids to separation of CO2 from air,In the agriculture and nutrition field, we have been

the Research Planning Development Departments 1 andvisualizing “unused chemicals and technologies” which

which has attracted a lot of public attention as a negative

working to implement “peputide agriculture”, which can

2. It works on (i) changing the business models of ex-

were developed by companies but have not been mar-emission technology.

contribute to the development of the sixth sector industri-isting businesses and creating new businesses throughketed, and linking them with potential needs.

collaboration and alliances (including equity participation

UQ chem’s dedicated portal website introduces

Energy management

alization, which is promotion of primary producers’ diversification into processing and distribution, by enhancing

and M&A) with partner companies (including startups)

unused products, including those of our group andWe also work on electrical energy management andthe intrinsic functions of plants through effective utiliza-and (ii) study measures to cope with matters that shouldcompetitors, using videos, to match the needs of various

thermal energy management.

tion of peptides, reducing the consumption of chemicalbe addressed across the company (achievement ofusers, including those in different industries, with opti-

In electrical energy management, we have been

carbon neutrality).

mal solutions. UQ chem aims to link unrecognized anddeveloping active materials for inorganic particle coating

crops and highly functional health foods. We will in-unused technologies with new target customers, whofor all-polymer batteries, which are manufactured by APB

crease our capabilities to propose solutions to customers

were unaware of such technologies, to create new value,

Corporation, to spread the use of renewable energy. We

through combinations with soil diagnosis technology

thereby revitalizing the chemical industry and creating

have also started working with FLOSFIA, a venture com-that can contribute to improving agriculture production

innovation.

pany that manufactures next-generation power semicon-

efficiency and technology to ensure prolonged release of

ductors and in which we have taken a stake, to develop

chemicals, in particular.

Mechanism to create new businesses
Examples of open innovation● Utilization of external technology exploration organizations● Marketing based on the intellectual property information

strategy● Utilization of external experts● Utilization of external incubation and accelerator programs● Utilization of venture capital● Collaboration with startups (e.g., equity participation)and production efficiency of power semiconductors capable of achieving high power conversion efficiency. We
aim to realize an energy-saving society through collaboration with FLOSFIA.

Other: technology exchange and technology fusion● Establishment of the Informatics Promotion Dept.
● Information searching tool (a tool for cross-organizational

searching of in-house database)■ Alliances with external partners (examples)

Target project

Artificial
protein
Silk–elastin

Peptide for
agriculture

Electronic
nose

fertilizers and pesticides, and creating high-value-added

chemicals that contribute to improving the performance

Human asset rotation based on the draft system

33

CO2 - capturing/storage/utilization

In thermal energy management, we will solve issues

https://uqchem.net/

and create new businesses to use solar energy with high(Japanese only)

efficiency. For example, we will create a “mechanism toconvert sunlight into heat” through an alliance with tiem
factory Inc.

Alliance partner

Rohto Pharmaceutical Co., Ltd.
(mesenchymal stem cells)
Kyoto University (wound healing materials)
Hiroshima University(meniscus regeneration materials)
Shintomi Town, Miyazaki Prefecture(research and development and demonstration experiment using peptide in agriculture)
Pharma Foods International Co., Ltd.
(establishment of “peputide agriculture”
using biostimulants)
Miyakotsuru Shuzo Co., Ltd. (commercialization of the “electronic nose” business)

Sanyo Chemical Group Integrated Report 2022

Solar heat collection panel

Sanyo Chemical Group Integrated Report 2022

34

Profile

StrategyFoundation

Research and Development/Intellectual Property
The Sanyo Chemical Group’s strength lies in various core technologies, including interface control technology and its devel-

Interface control technology

ees. We have also launched various education programs
that meet the needs of practical operations to develop

opment style to translate customer value and needs into functions, translate functions into physical properties, and translate
physical properties into compositions and synthetic processes rationally and in the fastest way. We have developed more

There is always an interface between two different sub-human resources who work on data utilization and im-than 3,000 performance chemicals that are used in various fields.

stances, such as “between water and air” and “between

prove data literacy on a company-wide basis.

water and oil.” And the properties of the interface are
deeply related to many phenomena, including ease of

R&D system and strategies

Measures to foster motivation

mixing and wettability. We have technologies to manage
the various interfacial functions, such as “cleaning,”

A flat organization based on the research unit system

We have various measures to keep researchers highly“penetrating/wetting,” “emulsification,” “dispersion,”R&D department has a unique organizational structure.

motivated and active, such as including the challenge“lubrication,” “plasticizing/softening,” “antibacterial,”

Research Unit (RU) System where the size of each R&D

system, the commendation system, technology fusion,“rust prevention,” “adhesion,” “antistatic,” andunit is small but directly reports to the research generaland opportunities of human resources development.

“coagulation,” by controlling the interfacial chemical

In terms of the intellectual property activities, we havemanager. This flattened organizational structure enables

Researchers can take on appropriate challenges any

features.

developed highly unique products and ensured reliability

researchers to make quick decisions and take action

time and gain successful experience with support fromflexibly. Also, the system allows even young researchersothers. A corporate culture in which those who succeed

to take active roles as unit leaders.

are commended but those who fail are not criticized is

IP landscapeby reliably patenting developed technologies, building apatent network and increasing the technological advan-

DXtage, improving profitability, and avoiding infringement of
third-party intellectual property rights, among others.

well established. This is how we nurture the challenging

Promptly meeting diverse customer needs with
NeeSeeds-Oriented R&D approach

The product development competition becomes more

spirit of researchers.

Challenge system

Taking a NeeSeeds-Oriented approach, we have up-

Personal Challenge for Research, independent research

dated the life cycles of existing products, transformed

Commendation system

existing processes and expanded into new fields.

Inventor of The Year Award, R&D Award, Best RU Award

The NeeSeeds-Oriented approach is a term that we

Technology fusioncoined by combining “needs-oriented” and “seeds-oriented.”
With this approach, a technique developed to meet aTechnology exchange promotion meeting, research discussions,in-house seminars

certain need is combined with another technique to

Human resources development

create another new seed technology for new products.

Personal Challenge for Research

will develop products in new business fields with highintense due mainly to globalization of economic activities,

To enhance our business advantage in the global

technological advancements, and shorter product cycles.

market, where the competition is becoming more intense,

Against this backdrop, we launched full-scale efforts on

while contributing to society, we must conduct overallmaterials informatics (MI)*1 and cross-organizational use

analysis of intellectual property information and marketof technological information possessed by respective

information and formulate and implement a management

research departments in 2020. Such efforts have alreadystrategy (IP landscape*2) based on such analysis.

started to produce results. For example, awareness has
We will use the NeeSeeds-Oriented approach, which

been raised to actively use data for efficient productResearch skills map, mini project system, study abroad system

By taking this approach in a chain reaction manner, wedevelopment. Analysis of accumulated data has made it

is characteristic of research and development of ourpossible to quickly design products whose performancegroup, in combination with the IP landscape, verify theexceeds that of conventional products.

advantage of our proprietary technologies in the existingoriginality. We have developed as many as 3,000 differ-

In this system, researchers propose research themes on

ent types of products by diversifying the technology inwhich they expect to launch a new business and freely

In April 2022, the Informatics Promotion Dept. was

The use of the IP landscape requires interdepart-the NeeSeeds-Oriented R&D. In recent explorations ofconduct research in the other department for one to two

established as a dedicated department. It serves as amental collaboration because it calls for expertise in

new business ventures in the energy, electronics andyears. A successful researcher can become a leader

hub to promote advanced use and familiarization of MI.

intellectual property of the Intellectual Properties Dept.

biomedical fields, we have placed special focus on thisand organize a team to promote research and develop-

To enable on-site researchers to use MI and data in theirand capabilities to appraise technologies and market

approach on open-innovation and alliances with otherment. Thus far, 23 out of 80 projects were successful.

daily operations, we have been deploying a proprietary

trends. The IP landscape enables the Intellectual Proper-

data analysis tool and cross-organizational informationties Dept. to collaborate with not only research sections

search tool, which are readily accessible to all employ-

but also respective business divisions, the Businesscompanies.

and new fields, and search new applications, in particular.

Planning Division, and the Corporate Planning Division,■ Changes in the number of R&D personnel

participate in formulation of strategies for these sections

Nearly 30% of our employees are involved in research and development activities.
(equivalent to about 5% of net sales each year).
(Unit: person)

As of the end of FY2021

R&D personnel: 421 persons

500
400

■ Changes in R&D expenses■ Number of patent applications

and divisions, and provide useful intellectual proper-(Billion yen)

(Unit: application)ty information to make our business unique and more

8500

profitable.

400

6
5.36

300

5.56

5.32

5.38

357

5.65
300

4
200
2

0
1949

388

383

385

422

*2 IP landscape: A coined word taken from “intellectual property” and “landscape”

382
344
306

348

283

200

100

35

*1 Materials informatics (MI): Efforts to increase the efficiency of materials development by using machine learning and statistical analysis to reduce the development period and develop innovative materials

100
0

0
1960

1970

1980

1990

2000

Sanyo Chemical Group Integrated Report 2022

2010

2021

(FY)

2017

2018

2019

2020

2021

(FY)

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

(FY)

Sanyo Chemical Group Integrated Report 2022

36

Profile

StrategyFoundation

Climate Change
The Sanyo Chemical Group has been stepping up efforts to contribute to carbon neutrality, as exemplified by the main

Support for TCFD

strategies and the Sustainability Action Plan in “WakuWaku Explosion 2030,” our management policy announced in March

CO2 emissions through the supply chain(Scope 3)2022. To contribute to carbon neutrality, we implement various measures to reduce CO2 emissions from our plants andIn December 2021, we showed support for the recom-

focus on early commercialization of new products that can reduce CO2 emissions many times more than that we emit frommendations by the Task Force on Climate-related Finan-

Our group calculates direct emissions due to use of

our plants by harnessing our proprietary engineering capabilities.

cial Disclosures (TCFD).

fuels, etc. (Scope 1), indirect emissions from the use of

The TCFD is a task force established by the Financial
Stability Board (FSB) at the request of the G20.

Targets in the Sustainability Action Plan

Targets in the Environmental Action Planelectricity, heat, and steam supplied by others (Scope 2),
and emissions through the supply chain (Scope 3).

Amidst the growing global momentum for reducing

The CO2 emissions in FY2021 were 2.36 million tons.

the greenhouse gas emissions in accordance with the

The CO2 emissions attributed to purchased raw materials

Our group has been systematically reducing CO2 emis-

We have been working on targets from FY2021 toParis Agreement, the TCFD recommends companies toand those attributed to disposal of final products using

sions to achieve net-zero emissions by 2050. In FY2021,

FY2024. The CO2 emissions in FY2021 (the first fiscal

evaluate the financial impact of climate-change-related

our products accounted for 51.7% and 43.3%, respec-

the first year in the Sustainability Action Plan (base year:

year) were 276,000 tons, attaining the target for FY2024

risks and opportunities on management and disclose

tively, of Scope 3.

FY2020), we reduced emissions by 10.4%.

(295,000 tons).

information on four items (governance, strategy, risk

■ Sustainability Action Plan

Theme: Contribution to Carbon Neutrality(Scope 1 + Scope 2)
Results in
FY2021CO2 emissions reduction by 10.4%(compared to FY2020)

2030 Target

CO2 emissions reduction by more than 50%(compared to 2020)

2050 Target■ Environmental Action Plan (period: FY2021 to FY2024)

Scope: Sanyo Chemical, group companies in Japan, overseas group companies
which have production sites

Theme: CO2 emissions

management, and metrics and targets).
Based on the company mission of “Establish a better
society through our corporate activities,” we work on sustainable management while keeping in mind sustainability

The CO2 emissions attributed to the use, processing,and transport by buyers of our products are not calculated because it is difficult to collect data required for
calculation.
To design and supply products with less environ-in the environment, society, and economy. By showing

mental impact and provide customers with appropriate

Results in
FY2021

276,000 tons:
Reduction by 11.3% from the FY2019 levelsupport to the recommendations, we reflect climate-related

product information, our group established the green

risks and opportunities in our management strategy andprocurement standard for production materials. The stan-

295,000 tons or less:
Reduction by 5% or more from the FY2019 level(311,000 tons in FY2019:
176,000 tons in Japan, 135,000 tons overseas)

contribute to realizing a sustainable society. Such risks anddard has been operated since 2005. The CSR procure-Target for
FY2024

opportunities are also incorporated in the financial state-ment working group, which is organized by the Global

ments and other documents for information disclosure,

Purchasing Division, Corporate Social Responsibility

thereby helping improve the sustainable corporate value.

Promotion Dept., and Products Evaluation Dept., stud-

Net Zero

ied the possibility of integrating the conventional green

Theme: Energy consumption
Results in
FY2021132,000 kL:
Reduction by 10.3% from the FY2019 level

Target for
FY2024140,000 kL or less in crude oil equivalent:
Reduction by 5% or more from the FY2019 level(147,000 kL in FY2019:90,000 kL in Japan, 57,000 kL overseas)procurement and CSR procurement into sustainableprocurement. In FY2021, the working group establishedthe “sustainable procurement guidelines.” Previously, weEfforts to cope with climate change based on
TCFD recommendations

conducted our own questionnaire survey of suppliers.
Starting in FY2021, we use a standard questionnaire
tool (common SAQ) formulated by the Global Compact

We have long been coping with climate change. We will

Network Japan (GCNJ) to actively reduce CO2 emissions

promote the following efforts to cope with climate change

through the supply chain.

based on the TCFD recommendations to realize “CO2Energy conservation

emissions reduction by 50% or more by 2030 (comparedto the FY2020 level) and net-zero emissions by 2050” asWe organized a working group for coping with global
warming with business sites in Japan as part of the Environmental Action Plan, which started in 2000. We haveworked to increase the efficiency of energy use, improvespecified in the management policy.
Item

Details

GovernanceConstruction and operation of a monitoring system by the board of directors

Strategy

Definition of climate-related risks andopportunities
Scenario analysis/definition of multiple
scenariosRiskmanagement

Construction of a system to select, manage, and evaluate climate-related risks

Metrics andtargets

Determination of metrics and targets inthe system to select, manage, and evaluate climate-related risks
Disclosure of information about CO2 in
Scopes 1, 2, and 3

the production processes, and switch fuels, in particular.
Previously, we set the target values based on the basic unit for many years. In the latest Environmental Action
Plan, the target setting has been changed from the basic
unit per production volume to consumption in crude oil
equivalent from the viewpoint that management in total
volume is more important.

37

Sanyo Chemical Group Integrated Report 2022

External recognition● Selected for inclusion in the S&P/JPX Carbon EfficientIndex (FY2021)

Sanyo Chemical Group Integrated Report 2022

38

Profile

StrategyFoundation

Human Resources/Job Satisfaction
In its management policy “WakuWaku Explosion 2030” announced in March 2022, the Sanyo Chemical Group defined its
2030 Vision as “Grow into a global, unique, and highly profitable company where every employee feels pride and satisfac-

Start of operation of the internal multiple work
system on a trial basistion in his/ her work.” We aim to realize a work environment where all employees mutually recognize diverse values andenjoy working in good health, by promoting DEI (diversity, equity & inclusion) and health management.

We aim to create a “WakuWaku company” that enables
individual employees to maximize their potential, which
will facilitate further enhancement of corporate value. In

PolicyUnder the slogan “WakuWaku,” all Sanyo Chemicalreform the corporate culture, and reinforce systems in

February 2022, we started operation of the internal multi-

order to accept diverse values and ensure that diverse

ple work system on a trial basis as a measure to improve

human resources can play an active role.

the job satisfaction and motivation of employees. Under

Group companies will work together to grow into a● Traditional technologies in Kyoto (42 employees)● Development of electronic nose (7 employees)● Development of CO2 absorbents and separation mem-branes (3 employees)● Peptide for agriculture (8 employees)● Joint development of a wearable liquid sensor device(4 employees)

this system, employees can voluntarily address themes

corporate group where “Every employee feels pride andsatisfaction in their work” by sharing dreams to make

Items at the present time
(employee numbers are as of the end of March 2022)

they wish to pursue in parallel with their existing work.

Health management

daily work more creative.
■ Targets set under the Sustainability Action Plan

Theme: A workplace that recognizes diverse values● Promote DEI, improve psychological safety, and introduce

reforms for greater job satisfaction● Support people’s sustainable lifestyles and improve their
QOL

We believe that it is important for the Company to be
actively involved in promoting employees’ health maintenance and improvement, rather than leaving health management to individual employees. Based on this idea, into promote health management.
If employees work in good mental and physicalhappy, which also leads to the development of the Company. We strive to develop a work environment that helps
employees continue to work vigorously and energetically

We aim to create a work environment where all employ-for many years.

ees can work without fear while staying true to them-

In recognition of such efforts, we have been certified

selves. By promoting work style reforms and DEI, we

as a Health and Productivity Management Organization

strive to realize a work environment where all employees,(White 500), jointly selected by the Ministry of Economy,

including women, LGBTQ, senior human resources, andTrade and Industry and the Nippon Kenko Kaigi (Japan

people with disabilities can work comfortably. At thehealth council) for four consecutive years.

same time, we endeavor to raise employee awareness,

External evaluations

Support for external organizations●W ork style reform: Approved as a best practice company in●P romotion of women’s advancement: Cabinet Office’s

Kyoto Prefecture (FY 2016)●C hildcare support: Granted Platinum Kurumin Certification(FY 2017)●L GBTQ initiatives, etc.: Granted the highest Gold rating in

the PRIDE Index (for three consecutive years from 2019)●P romotion of women’s advancement: Granted three stars,

the highest rating in Eruboshi Certification (FY 2021)“Declaration on Action” by a group of male leaders who will
create “A Society in which Women Shine”●P romotion of women’s advancement: The “Challenge to

30% by 2030” initiative of the Japan Business Federation(Keidanren) aims to achieve a ratio of 30% or more female
executives by 2030
●L
 GBTQ initiatives, etc.: “Business for Marriage Equality,” a cam-paign for equality in marriage (legislation of same-sex marriage)●L ife-work balance: Participation in the “Ikuboss Company

Alliance”

39

Sanyo Chemical Group Integrated Report 2022

Kyoto Culture x Technology of Sanyo Chemical Group2018 we announced the Health Management Declaration

health, not only the employees but also their families are

Diversity, equity & inclusion (DEI)

Challenge of the Kyoto traditional industry team

In February 2021, we launched the “Kyoto Culture x Technology of Sanyo Chemical Group = XX Innovation” project,which revitalizes Kyoto traditional industries by Sanyo Chemical Group technologies. Its proposer, Ritsuro Namiki,
General Manager of the Finance Dept., talks about the project.

A project that began with an e-mail message to the
President
In Kyoto, there are 74 categories of traditional industries,
including Nishijin textile, Kyoto Yuzen dyeing, and Kiyomizu
ware, all of which are renowned both in Japan and overseas.
However, traditional industries in Kyoto have been in a predicament, due to a decline in shipment value and a lack of successors. With the survival of some of these categories at risk,
the stagnation of Kyoto’s traditional industries has become amatter of social concern in the region.
Witnessing the hardship of these local traditional industries, I sent the President an e-mail saying, “I believe there issomething Sanyo Chemical can do to help improve the situation.” The President replied that “Sanyo Chemical is a company based in Kyoto. If the Company’s technologies can bringabout innovation that will help revitalize Kyoto, I’ll give you the
OK to go ahead with the project!” I then visited the Kyoto City
Industry and Tourism Bureau and the Kyoto Municipal Instituteof Industrial Technology and Culture, and learned that traditional industries have issues that could be resolved by chemistry, along with a shortage of successors and other problems.
The Institute of Industrial Technology and Culture provided us
with 28 themes, which we announced to approximately 400
researchers of our Company to invite ideas to generate solutions. We were able to collect many ideas, which were summarized and suggested to these organizations. At the sametime, we gave presentations on the prevention of discolorationin gold/silver threads and how to improve incombustibility, as
we began to see the clues to resolving these two issues. Since
the Nishijin textile industry had given up finding a solution to
the discoloration of gold/silver threads, our presentation ona preventive method was received with surprise. Now I see
great potential in our Company’s activities to make a positive
contribution to traditional industries.

Current status of the project
At present, we have six Traditional Industry Teams, consistingof about 40 members in total. Originally started in Kyoto City,
the project has expanded its scope of activities to cover a
wider area as we have become associated with the Kyoto
Prefectural government and various industrial organizations
through the intermediation of local financial institutions. Now
we are trying to find out what we can do to support each ofthese organizations in resolving their respective issues.
Aside from research activities, preparations are under
way to establish a Sanyo Chemical Kyoto Traditional Industry
Development Fund, as part of our initiatives to help nurture
prospective artisans who will take over traditional industries.
In addition, we are considering the conclusion of a trilateral agreement with Kyoto Prefecture and Kyoto City, with theobjective of supporting traditional industries. In so doing, wewant to revitalize the traditional industries of Kyoto, thereby
contributing to local communities.

Sanyo Chemical Group Integrated Report 2022

40

Profile

StrategyFoundation

Occupational Safety and Health/Accident Prevention
Safety / accident prevention activity

Details of a fatal occupational accident on January 15, 2022

“Teams” and holding Safety Sessions at which such
efforts are presented company-wide.

On January 15, 2022, a fatal occupational accident occurred on the premises of the Nagoya Factory (Tokai City, Aichi Prefecture)of Sanyo Chemical Industries, Ltd. Specifically, an employee of a subcontractor died during preparation for the resumption of
production after periodic equipment repairs. We sincerely pray for the repose of the employee’s soul and extend our heartfelt
sympathy to the family of the deceased. We would also like to deeply apologize for the inconvenience and anxiety we may havecaused to all those concerned.
The outline of the currently known facts is as follows:

In order to ensure safe business operation and business
continuity, we implement countermeasures for both
“hardware” and “software” and, after having set the

Status of labor accidents

response/action plan in case of an emergency, conduct
training in accordance with it.

To achieve zero labor accidents, we are conducting
activities under the main themes of improvement of

Discovery dateAround 12:00, January 15 (Sat.), 2022

Discovery location

Production Dept., Nagoya Factory of SDP Global Co., Ltd., 31-1 Shinpomachi, Tokai-shi, Aichi

Discovered
situation

During the preparation for resumption of production after periodic plant equipment repairs, an affiliate’s employee
was lost sight of. Other employees then looked for the employee, who was then found to have collapsed in the plant.
The public fire department was notified and the accident victim was immediately transferred to a hospital. However, the employee was confirmed dead.

We regularly conduct training for handling abnormalities

implementation of recurrence prevention measures, andand other contingencies to prepare for earthquakes, fires,

achievement of safer work environment. In fiscal year

and leakage accidents in accordance with the annual

2021, we had a fatal accident involving the death of an

Deceased person

One employee of a subcontractor

schedule. We also hold training in cooperation with the lo-affiliate’s employee. There were also six occupational

Cause

The cause of the accident is still under investigation by the authorities concerned. The Company will continue toprovide full cooperation in the investigation.

cal community, including joint training with the neighboring

accidents involving our employees with lost time and two

factories of other manufacturers and the local fire depart-without lost time. As for dispatched employees/employ-

At the time of issuance of this integrated report, the investigation by the authorities concerned was still ongoing, and theCompany will continue to fully cooperate in the investigation. In addition, the Company has established its own accident
response committee to analyze various possible causes, including indirect factors that may have led to the accident.
We will continue to take measures to identify the fundamental issues and prevent the recurrence of similar accidents.

ment. Notably, most recent disaster drills have been heldees of affiliates, there was one occupational accident

without a prearranged scenario, in order to improve ourwith lost time and four without lost time. We have inves-practical disaster response capabilities. In 2012, we estab-tigated the actual causes of the accidents by using thelished the Safety and Technology Education Center aimed

five whys method,*2 implemented recurrence prevention

Future measures

Training for handling abnormalities and emergency
response

workers’ hazard prediction capability, creation of a workplace culture in which workers warn each other, thoroughat improving safety education and production technology

measures, and rolled out important countermeasures to

The Sanyo Chemical Group, which runs chemical businesses, is well aware that safety is the basis of everything, and has

at the Nagoya Factory. The center is equipped with devices

all Group factories in Japan and abroad.

been striving to achieve accident-free/injury-free operation. We earnestly regret the occurrence of this fatal accident. The

that allow visitors to experience the danger of occupational

Group will redouble its efforts to ensure that all its employees go back to the basics and remain committed to occupational

accidents and simulators that reproduce onsite production■ Frequency rate of occupational accidents*3

safety and health and accident prevention.

equipment, allowing for the study of principles and theories.

(Frequency rate)

Our Group

Chemical industry

2.000

Earthquake countermeasures

Policyon a consensus between labor and management.

Following the Great Hanshin-Awaji Earthquake in 1995, we

In case of an emergency, a local emergency task

have been continuously implementing the aseismic rein-

We will give top priority to safety and accident prevention

force is established in the region where the emergency

forcement of our buildings and production equipment. We

in all our business activities. We will strive for the continu-

has occurred. Should a large-scale earthquake or otherhave also been undertaking the formulation of business con-ance of accident-free/injury-free operation and contributewide-area disaster occur, the Business Continuity Task

tinuity plans (BCPs) since 2007. Based on the experience of

to social safety. At the same time, we will protect theForce will be set up at the Head Office to implement

the Kashima Factory, which was hit by the 2011 Great East

safety and health of everyone involved in our operations,

support and reconstruction activities on a company-wide

Japan Earthquake, we conduct BCP training and continu-

level. Since natural disasters and environmental acci-

ously review the response manual and other documents.

and strive to create a comfortable work environment.

dents are mutually related, the Responsible Care Division
General Manager serves concurrently as the Business

SystemContinuity Task Force General Manager.

Predictive maintenance and accident prevention
measures
We have started to employ a predictive maintenance

To promote occupational safety and health, each manufacturing base of the Group has established an Environment

President

and Safety Department (Section). The Environmental and
Safety Administration Department of the Responsible Care
Division provides instruction and supervision to thesedepartments (sections), as well as research laboratories,

Responsible Care Division
Environmental and Safety
Administration Department

Head Office, branch offices, and sales & marketing offices.
The General Manager of the Responsible Care
Division overseas the Occupational Safety and HealthCommittee, which was set up in accordance with the
Occupational Safety and Health Law. The Committee
promotes occupational safety and health activities based

41

Sanyo Chemical Group Integrated Report 2022

Business Continuity
Task Force*1(set up in case of an emergency)

Instruction andsupervision

Report on
activities

1.000
0.500

0.10

0.04

when periodic maintenance is carried out.

Overseas Group
companies
Production factories

ing these glasses, skilled workers can view images andEach factory*1 Headquarters to be set up in the event of a large-scale earthquake or otherwide-area disaster to implement support and reconstruction activities, and the
Responsible Care Division General Manager will serve concurrently as the General Manager of the task force.

We have also introduced smart glasses. When weargive instructions from outside the plant.
In addition, we have been implementing accident
prevention measures. These include sharing prevention
activities conducted by our respective factories through

0.940

0

0

2019

2020

1.070

0.558

2018

2021

（FY）

0.09

0.08

transformation) for the replacement and repair of parts

Each factory

0.940(Severity rate)

Each factory
Research laboratories,
Head Office, branch offices,
sales offices

ment and the unexpected problems that tend to occur

0.900■ Severity rate of occupational accidents*4

0.06

we believe this will reduce unnecessary parts replace-

0.810

2017

method that makes effective use of AI and DX (digital

Domestic Group
companies
Production factories

0.858

0

Sanyo Chemicaland other components at appropriate times. As a result,

1.614

1.500

0.02

0.06
0.05

0.02

0.02

0
2017

0.00

0.00

2018

2019

0.03
0.02
0.00
2020

2021

（FY）

*2 A technique to verify the effectiveness of countermeasures against a certain
problem, by examining the direct cause of the problem (why did it occur) and by
repeating the question “Why?” to determine the root cause.
*3 Frequency rate = (Number of employees subject to accident with lost time ÷(total working hours) × 1,000,000
This value indicates the generation frequency of accident victims (Group company employees) per 1 million hours.
*4 Severity rate = (labor lost days) ÷ (total working hours) × 1,000
This value indicates the severity of accidents per 1,000 working hours.

Sanyo Chemical Group Integrated Report 2022

42

Profile

StrategyFoundation

Corporate Governance
Based on the Company mission, “Establish a better society through our corporate activities,” the Sanyo Chemical Group willrealize sustainable growth towards the future by enhancing both economic and social values in close cooperation with all
stakeholders. To this end, we consider the establishment of corporate governance that is trusted by stakeholders to be one

Committees

Standards for selection of Directors

Nomination and Compensation Committee
Chairperson: Chairman of the Companyof the highest priority management issues.

Frequency of meetings: 5 times (FY 2021)
Role: An advisory body to the Board of Directors. The majority of its

Audit & Supervisory Board Members andthe Audit & Supervisory Board

Corporate governance system
The Company has adopted a Company with an Audit

Of four Audit & Supervisory Board Members, three are& Supervisory Board structure. The Company has also

from outside the Company. The Audit & Supervisory Board

introduced the executive officer system, under which Ex-

Members not only attend Board of Directors’ meetings,

ecutive Officers execute business in accordance with theManagement Council meetings and other important meet-

management policy, etc., determined at meetings of theings, but also inspect important approval documents. They

Board of Directors. In this manner, the Company clearlythus audit the status of Directors’ business execution, cap-

separates the management decision-making and super-

italizing on the knowledge of inside members who are wellvisory function from the business execution function.

versed in the wide range of businesses of the Company,
as well as the expertise of outside members with experi-

Directors and the Board of Directors

ence concerning financial and accounting affairs or out-members are outside Directors. The Committee reports to theBoard of Directors the results of its deliberation on matters regarding the nomination of Directors and compensation for them.

Sustainable Management Committee
Chairperson: President and CEO

sisting of inside directors who have objective judgement,
foresight, and insight into management issues based on theirexpertise, knowledge, and experience they have accumulated in sales and research or production and general affairs departments, and outside Directors who can proactively provide
advice and suggestions based on their rich experience froman objective perspective. In line with this policy, the Company

Frequency of meetings: Twice (FY 2021)

selects candidates while taking into account the balance andRole: As a body under the direct control of the Board of Direc-

diversity of the Board of Directors, and other elements.

tors, the Committee deliberates and makes decisions
on the policy for responding to important matters to beaddressed with high priority, regarding the process for sustainable growth, the environment, society, and governance.

Compliance Committee
Chairperson: President and CEO
Frequency of meetings: Once (FY 2021)

Standards for selection of Audit & Supervisory
Board Members
The Company’s policy is to form an Audit & Supervisory

The duration of Directors’ terms of office is one year. The

side members with business management experience. In

Board of Directors comprises nine directors, including

addition, as an organization under the direct control of thethree Outside Directors who satisfy the independence

Audit & Supervisory Board, the Company has establishedstandards of the Company. With the objective of strength-

the Auditors Staff Division. The Division staff who assist

ening the management supervisory functions, a third of

the Audit & Supervisory Board Members in their duties are

the Company’s Directors are independent Directors, andindependent of the Directors. By establishing this structure,

Chairperson: President and CEO

regarding objective auditing based on their knowledge andthe Chairman of the Board is selected from among Direc-

we strive to secure the effectiveness of audits.

Frequency of meetings: Twice (FY 2021)

experience in finance and accounting or other specialized

Role: As a body under the direct control of the Board of Direc-

fields and who are sufficiently qualified to ensure their in-tors who are not involved in the execution of business.
The Board of Directors hold a meeting, in principle,

Management Council

once a month. It makes decisions on important matters,

The Management Council meets once a month, in prin-such as the management policy, and supervises the

ciple, to make decisions on important matters regarding

status of business execution. In fiscal 2021, 15 meetingsbusiness execution, based on the management policyof the Board of the Directors were held.

etc., determined at meetings of the Board of Directors.

Role: As a body under the direct control of the Board of Direc-

tors, the Committee deliberates and makes decisions on
basic policies and measures to ensure full compliance withlaws and regulations.

Internal Control Committee

tors, the Committee makes decisions on the entire internal
control system, and provides instructions and supervision
for the internal control system’s development, operation,
evaluation, and improvement activities.

Independent
Director

Advise(Voluntary)

ReportChairperson:
Member selected byresolution of the Board of
Directors
Inside Directors: 2 members
Outside Directors: 3 members

Board of Directors
Chairperson:
Director selected by resolution of
the Board of Directors
Inside Directors: 6 members
Outside Directors: 3 members

Audit

Cooperation

Auditors Staff
Division

Auditing Division

Management Council

Accounting audit

Chairperson: President and CEO

Department executing business

Sanyo Chemical Group Integrated Report 2022

Aya
Shirai

HideakiObatadependence from those involved in business execution. Inline with this policy, the Company selects candidates for the
Audit & Supervisory Board with its agreement.

〇

No applicable items

We have designated Mr. Hideaki Obata as an independent Director since he meets
the Company’s independence standards and is therefore deemed to have no conflictof interest with our general shareholders. He has abundant experience and achievements from having been involved in management over many years at companies
with a wide range of business domains. We expect that he will be involved in ourdecision-making processes from an independent standpoint, capitalizing on his wide
breadth of knowledge and experience, which will enhance the supervisory functionsof the Board of Directors.

〇

She is a business executive (Kansai Office
General Manager) of Japan Institute for
Women’s Empowerment & Diversity Management, which is an outsourced contractorof the Company. Since the annual amount of
actual transactions in the latest fiscal year isless than 2% of the ordinary profit of the said
institute, it is not applicable to the organization whose main client is our Company.

We have designated Ms. Yumi Sano as an independent Director since she meets theCompany’s independence standards and is therefore deemed to have no conflict ofinterest with our general shareholders. She has a wealth of practical experience inpromoting diversity and developing human resources in listed companies, etc. In addition, she has experience and achievements from having been involved in corporate
management as an outside Director of another listed company. We expect that she
will be involved in our decision-making processes from an independent standpoint,
capitalizing on her wide breadth of knowledge and experience, which will enhance
the supervisory functions of the Board of Directors.

Accounting auditor

Yumi
Sano
Audit

pany, and inside members who can express their opinions

No applicable items

〇

Audit

Management

Group companies

Cooperation

manager or person in charge of accounting in a listed com-

We have designated Ms. Aya Shirai as an independent Director since she meets theCompany’s independence standards and is therefore deemed to have no conflictof interest with our general shareholders. She has a wealth of experience gained
through administrative activities from her many years of involvement in municipal
administration. In addition, she has experience and achievements from having been
involved in corporate management as an outside Director of other listed companies.
We expect that she will be involved in our decision-making processes from an independent standpoint, capitalizing on her wide breadth of knowledge of experience,
which will enhance the supervisory functions of the Board of Directors.

ReportNomination / Dismissal /Supervision

President
Sustainable Management
Committee
Compliance Committee
Internal Control Committee

Audit & Supervisory
Board

Coordination evaluation

Nomination andCompensation Committee

Nomination / Dismissal

discernment based on their experience in serving as a

Reason for selection

General meeting of shareholders
Nomination / Dismissal

independence in addition to high levels of expertise andSupplementary explanation
on applicable items■ Corporate governance structure

Nomination / Dismissal

Board consisting of outside members who have legal■ Reason for selection as Outside Director

Name

43

The Company’s policy is to form a Board of Directors con-

Sanyo Chemical Group Integrated Report 2022

44

Profile

Corporate GovernanceDiversity of the Board of Directors

into account diversity, including their gender, internationality,
professional experience and age, and each member’s skills,

The Company selects candidates for its Board of Directors

experience, and personality, so that the Board of Directors

by comprehensively considering each member’s personali-achieves a good overall balance of knowledge, experience,

For inside and full-time Directors and Audit & Supervisory

ty and other aptitudes, in order to form a Board of Directors

and ability to effectively perform its roles and responsibilities.

Board Members, when they assume office, we provide ex-with a good overall balance of knowledge, experience, andIndependent outside Directors include members who haveplanations on relevant laws and regulations, the Company’s

ability to effectively perform its roles and responsibilities. It

management experience at other companies.

Foundation

Nomination and Compensation Committee● About the composition (diversity) of the Board of Directors● Development of a plan for selecting a successor to the President● Formulation of the policy and standards for selection of the

President● Formulation of the policy and standards for dismissal of the

President

Articles of Incorporation, the Board of Directors regulations● Verification of the Directors’ compensation levelshould also ensure both an appropriate size and diversity,and other internal regulations. For outside Directors and● Verification of the Directors’ compensation system and theincluding in terms of gender, internationality, professional

full-time Outside Audit & Supervisory Board Members, we

Compensation and incentives for Directors

experience, and age. To enhance our corporate value in thefacilitate their understanding of the Company’s businesses
by conducting inspection tours to our factories and oth-medium to long term in keeping with the basic philosophy

process of determining their compensation

Sustainable Management Committee● Organization of a system of principles in sustainable management

described below, the Nomination and Compensation Com-

Compensation, etc., for the Company’s Directors is

er operation sites. We also offer opportunities to acquiremittee held discussions on the skill items required for thedesigned to secure excellent human resources towards

necessary knowledge and information by such means as

Company’s Board of Directors and decided on the following

improving corporate performance, as well as to ensure

participation in external seminars on corporate governance.

● Initiatives to address climate changeeight items: corporate management; finance and account-that the compensation level and system reflect theiring; corporate governance; international business; sales

duties. The compensation level and system are based

and marketing; research and development, production andon financial results, external objective data, and other

Major discussion topics and themes● Implementation and planning of corporate ethics study meetings

new business development; human resource development

factors, and the appropriateness thereof is verified byand training; and understanding of diversity. These skill

the Nomination and Compensation Committee, of which

items will be reviewed and revised, if necessary, in the lighta majority of members are outside Directors. The policyof the business environment and social circumstances.

for determining compensation for Directors is deliberated
and determined at the Board Meeting.
With regard to bonuses for Directors, the total amountBasic philosophy

to be paid is calculated by using consolidated ordinary● Contribute to society through fulfillment of the Company

profit, which is a benchmark for a corporation’s profit-

mission: “Establish a better society through our corporate activities”● Steadfastly maintain a stable management base andproactively develop new businesses while leveraging thestrength of our existing businesses● Realize a WakuWaku company that respects diversity
and where all employees enjoy high job satisfaction

The Company has also introduced a stock-based
Directors. The objectives are to further clarify the linking three independent outside Directors, two of whom are

between Directors’ compensation and the Company’s

female) with knowledge or experience in line with the above

stock price, and share the benefits and risks resulting

skill items, and four Audit & Supervisory Board Members

from fluctuations with shareholders, thereby incentivizing(one of whom is an independent outside member). In

contributions toward enhancing business performanceselecting these board members, the Company has taken

and corporate value over the medium to long term.

■ Skills matrix
Name

Takao
Ando
Akinori
Higuchi
Kohei
Maeda
Hiroyuki
Shimominami
Masahiro
HaradaKenichi
Nishimura
Aya
Shirai
Hideaki
Obata
Yumi
Sano

Position

Meeting
attendance

Corporate Finance andmanagement accounting

International
business

Sales andmarketing

●

●

●

●

●

●

●

●

●

●

●

●

●

●

Representative
Director and President

15/15(100%)●

Representative Director

15/15(100%)●

Director

15/15(100%)●

Director(Newlyappointed)

Director(Newlyappointed)

Director●

15/15(100%)●●

Director

●

11/12
(92%)

●

●

●

12/12
(100%)

Sanyo Chemical Group Integrated Report 2022

Understanding ofdiversity

Corporate
governance

15/15(100%)

Director

Human
resource
development
and training

R&D,
production, andnew businessdevelopment

Chairman

●

●

●

●

●
●

●

● Policy on operating major businesses● Matters regarding investment, financing, donations● Confirmation of the results of the effectiveness evaluation of

the Board of Directors● Matters on which to seek advice from the Nomination andCompensation Committee● Matters regarding procedures for the general meeting ofThe current Board of Directors consists of Directors (includ-

Independent
outside● Formulation of management policies and comprehensive plans

results for the relevant fiscal year and over the medium
and responsibilities of each Director.

●
●

●

●

●

●

●

●

●

●

●

●

●

● Identification of material issues● Results of the use of whistleblowing contact points for consul-

Board of Directors

ability, as an indicator, based on the status of financial
to long term. Allocation is determined based on the roles● Basic Policy on Sustainability

Compliance Committee● Approval of closed financial statementscompensation system for Directors other than outside

45

Training for Directors and Audit & Supervisory
Board Members

Strategytation or reporting

Internal Control Committee● Results of the evaluation of internal control activities related tofinancial reports● About proposals for disclosing the operational status of theInternal Control System in the Business Report● Results of the evaluation of the operational status of the Inter-

nal Control System regarding significant risks other than thoseincluded in financial reports

shareholders● Resolutions are made primarily based on the Companies Act

Resolutions on conflict-of-interest transactions, directors’ and officers’ liability
insurance, etc., based on the Companies Act
Appointment and dismissal of important employees
Matters related to compensation for directors

Effectiveness evaluation of the Board of Directors
Outline of survey

Outline of the results

Date: January 2022

● We recognized that the Board of Directors’ effectiveness is

Those surveyed: All Directors (9 persons) and all Audit &Supervisory Board Members (4 persons)
Survey method: Anonymous survey, rating on a five-point scaleor free description
Evaluation method: Using the system of a third-party organization
Questionnaire items:① Composition and operation of the Board of Directors② Discussions at Board of Directors meetings③ Monitoring function of the Board of Directors④ Support system and training for Directors and Audit &Supervisory Board Members⑤ Efforts made by each Director⑥ Dialogue with shareholders

generally assured.
● The previous year’s evaluation results indicated that there

was room for improvement in terms of “reinforcing the governance system,” “improving discussions on management
strategies from a medium- to long-term perspective,” and“enhancement of support to outside Directors,” in order tofurther improve the effectiveness of the Board of Directors.
This year’s results showed certain improvement in thesematters. At the same time, we recognized anew the need forcontinuous improvement efforts.
● Of the activities in fiscal 2021, high ratings were given to thevoluntary establishment of the Nomination and Compensation Committee and explanations given by the executive officers regarding their proposals submitted to board meetings.

Sanyo Chemical Group Integrated Report 2022

46

Profile

StrategyFoundation

Risk Management

Compliance

To avert business continuity crises and prepare for unforeseen circumstances, the Sanyo Chemical Group has establishedIn the Code of Corporate Ethics, we have declared that it is essential corporate behavior to ensure legal compliance andinternal regulations to cope with each possible risk. We conduct risk management by raising the risk awareness of employ-

to fulfill our corporate social responsibility. The Sanyo Chemical Group is voluntarily adopting this advice in order to realize

ees by providing training and holding drills.

a sustainable society and to fulfill the Company mission, “Establish a better society through our corporate activities,” with
common sense and integrity towards society as a whole.

Risk management system

Information management

In order to address risks surrounding the Group, inter-In accordance with the remarkable development of in-nal regulations such as the Operational Responsibilities

Compliance system

Internal whistleblowing systemformation and communication technology, the communi-

We have appointed a Director in charge of corporate eth-

If an employee becomes aware of a compliance prob-

Regulations, the Basic Regulations for Product Liability

cation environment has been rapidly changing, bringing

ics and established the Compliance Committee, which islem, the employee should basically discuss it with his/(PL), and the Information System Security Regulations

about greater convenience as well as increasing threats.

under the direct control of the Board of Directors.

her supervisor and/or the personnel concerned. How-

have been formulated, and the departments in charge

Since the introduction of the telework system, the Com-

The Compliance Committee is a deliberative andshall manage the risks. The Auditing Division (Businesspany has seen increasingly widespread use of IT equip-

decision-making body on the basic policy and measures

discussions, the employee can use the internal reporting

Auditing Department or Technical Auditing Department)

ment outside the offices/factories. To ensure IT security,

regarding compliance. As a rule, the Committee holds

service (compliance hotline), whose points of contact areunder the direct control of the President monitors thewe have established the Information System Security

regular meetings twice a year.

set up both inside the Company and outside. The Gen-status of risk management with the Group. If a risk aris-

Regulations and the Personal Computer and Network

es, the Internal Control Department serves as a point ofManagement Regulations, and introduced a firewall anddirect control of the President, so as to strengthen ourof the Compliance Committee Secretariat, serves as thecontact and deals with the risk in a timely and appropri-

other network security systems. We also manage licens-internal auditing function.

internal contact point for whistleblowing. For consultation

ate manner. The Department also develops recurrence

es for the use of information systems and limit access toprevention measures, which are implemented by relevant

the Internet. As for the protection of personal information,

departments.

we have laid down the Personal Information Protection

We have also set up the Auditing Division under the■ Compliance promotion organization

Board of Directors

Policy, which stipulates the purpose and methods of use

Secretariat:
Auditing Division General Manager,
Legal Affairs Department Managerof personal information and its management, as well as

Business continuity plan(BCP)

consultation procedures regarding such information.
Moreover, we comply with the Social Media Policy, formu-

A business continuity plan(BCP) is a plan designed in

lated to address issues concerning employees’ personaladvance to minimize a decline in a company’s businessuse of social media, which has become a matter ofactivities, if the company is adversely affected by a natu-

concern in various companies in recent years.

Compliance Committee

President

Auditing Division
Business Auditing Department

ral disaster, accident, or other unexpected event, and to

Technical Auditing Department

recover in the shortest possible time.
There are a wide variety of conceivable risks. The

eral Manager of the Auditing Division, who is a member

outside the Company, employees may use a corporate
lawyer’s office. The whistleblowers’ confidentiality iscarefully protected.
In fiscal 2021, two reports were submitted throughthe compliance hotline.

Education and awareness-raising activities
Every autumn, the Sanyo Chemical Group observes a
Corporate Ethics Month with the objective of preventing
the occurrence of corporate misconduct. During theOverseas crisis management activities

month, all departments in the Group hold study sessions,Group has drawn up BCPs that prepare for response

47

ever, if the problem cannot be resolved through suchthe results of which are reported to the personnel inInternal auditingin the event of a massive earthquake or a pandemic.

The Sanyo Chemical Group has established and imple-

The BCP Secretariat, which is in charge of revising themented the Basic Regulations for Overseas Crisis Man-

documents, has been set up within the Internal Control

agement, which set forth basic points for reducing risks

The Business Auditing Department and the Technicalrate culture that may form the background to corporate

Department. We also continuously hold practical drills inthat may cause harm to the lives, bodies and property of

Auditing Department of the Auditing Division conduct

misconduct, and we have learned that corporate culture

each region.

the Group employees outside Japan, and for respond-internal auditing. These departments objectively inspectreform leads to improved compliance.

ing to an overseas crisis if such an event should occur.

and evaluate the business management and operation

In each Corporate Ethics Month from fiscal 2019, we

The Overseas Crisis Management Secretariat constantly

systems and the status of business execution in terms

have held a group discussion after viewing an education-gathers and analyzes information and issues overseasof legitimacy, effectiveness, and efficiency. Based on theal video created outside the Company, by revising thetravel warnings as necessary. We have also determined

results, these auditing departments make proposals forcontent and methods of past study sessions.

the crisis management organizations and the chain of

improvement or corrective recommendations, in order tocommand that will function in case of emergency, andfacilitate the Company’s sound management and sus-

defined the responsibilities and authority of the Overseas

tainable development.

Sanyo Chemical Group Integrated Report 2022

charge of corporate ethics. In recent years, these sessions have placed particular focus on the kind of corpo-

Crisis Management Secretariat and the response head-

The Business Auditing Department audits mattersquarters, so that appropriate responses can be maderelated to personnel, finance, accounting, sales, purchas-accordingly. When a BCP is implemented, the overseas

ing, international business affairs, etc. The Technical Au-

crisis management organizations will work in coordina-diting Department audits matters related to research andtion with the Business Continuity Task Force.

technological development, production, logistics, etc.

Sanyo Chemical Group Integrated Report 2022

48

Profile

StrategyFoundation

Spirited Discussion Meeting of Outside Directors

Aya Shirai

Hideaki Obata

Yumi Sano

Outside Director

Outside Director

Outside Director

Here are conversations from a discussion meeting of Outside Directors, which we planned to let readers gain a glimpseof the Company’s corporate governance practices. The three directors fully discussed the essential theme—what is
WakuWaku Management—in line with the recently announced management strategy “WakuWaku Explosion 2030.”
They also talked about Kinmirai (near future) Camp, in which directors stay and interact together for three days and twonights, and topics related to the Board of Directors.

Kinmirai Camp serves as a place
for honest debate
Obata: When I first participated in the Kinmirai Camp, I had
just taken up my present post in June 2021, so I still didn’tknow much about the Company. However, the Camp wasvery informative. I remember that around 40 directors got
together at the meeting, where they spoke freely about the
management plan, each department’s plans, and otherissues. During the meeting, Mr. Higuchi attentively listened
to the other directors. I was very impressed with his attitude, which made it easier for directors to freely and actively express their opinions, not only about their own divisions,but also about the entire Company. In this sense, I think thefoundation for WakuWaku Management has already been
established to a certain extent.
Sano: The theme of the Kinmirai Camp was “How can
we realize the Vision of Sanyo Chemical?” It is typical forcompanies to discuss the gap between their vision andthe present situation. However, the directors of Sanyo
Chemical had a positive way of thinking and expressed
their dreams toward achieving the Vision. It left me with avery nice expression.
Each director made a statement of about two minutes. I felt that so-called psychological safety wasmaintained at the meeting. There was a perfect balance
between the leadership style shown by Mr. Higuchi, whoclosely listened to the others, and the punchy directions

49

Sanyo Chemical Group Integrated Report 2022

sometimes given by Mr. Ando. When Mr. Ando issued adirection saying, “Immediately take action to ensure thatfemale members account for 20-30% of all participantsof the meeting,” I was impressed with his great agility.
Ms. Shirai, you have witnessed the evolution of theKinmirai Camp. How do you feel about it?
Shirai: This year it was the fourth time for me to participate in the Kinmirai Camp, which is an annual event.
Although this 3-day and 2-night program is long andhard, I believe that we can exchange our true opinions
at the meeting. Any company can hold many meetings.
However, the Kinmirai Camp offers a rare opportunity toengage in honest debate during the 3 days and 2 nights,
both during work hours and after hours. I therefore feelthat Sanyo Chemical’s Kinmirai Camp is different fromsimilar programs of other companies.

Outside Directors find the uniqueness of
Sanyo Chemical in its corporate culture
Obata: I think that the uniqueness of a company is something like corporate culture or DNA. This is extremely
important for a company. If it takes approaches or measures that are a good fit for its corporate culture, they
will take root, but they are ill-fitted, these approaches
and measures will fail. I therefore believe it is vital for
Sanyo Chemical to consider how we should recognize its
uniqueness and how to share it. It may be a good idea tohave an in-depth discussion to revisit the nature of Sanyo
Chemical’s uniqueness.
Sano: Since the time when Mr. Ando was President, Sanyo
Chemical has promoted DEI (Diversity, Equality, and Inclusion) with the highest level of commitment. The Company
stives to fulfill its mission “Establish a better society throughour corporate activities” in a form that meets present-day
needs by promoting DEI. This approach has somethingin common with the basic philosophy of the SDGs: “therealization of a sustainable, diverse and inclusive society
where ‘no one will be left behind.’” This approach clearly
represents the uniqueness of Sanyo Chemical. Its top management in person tells employees that Sanyo Chemical
will embody this philosophy as a company.
Obata: Reading the history of the Company, I realize that
Sanyo Chemical placed human resources at the centerof its management from very early on. In 1988, the Company was already referring to “people-oriented management,” had introduced a performance-based wage
system, and established a career development systemfor employees. Most Japanese companies began toreform their business structures and personnel systems
in the mid-1990s after the burst of the bubble economy.
In contrast, Sanyo Chemical developed its concept of
people-oriented management around 1988 in the midstof the bubble era. Probably we can find some clues leading to this concept in the Company’s history.
As part of that history, Mr. Ando commenced diversity
management. It has now evolved into WakuWaku Management, which spotlights every employee. In this manner,
the Company has advanced step by step. This is Sanyo
Chemical’s corporate culture, DNA, and uniqueness.
Since WakuWaku Management stems from theuniqueness of the Company, I believe it will take root in
the organizational culture. The next development will alsocome from the Company’s uniqueness. Sanyo Chemicalhas maintained such a positive growth cycle, which is
not borrowed but has originated from within.
Shirai: When I accepted my appointment as Outside
Director four years ago, I wondered what contribution
I could make here. I then heard that for a very longtime Sanyo Chemical has had so-called salons where
directors voluntarily assemble and learn from eachother, transcending the boundaries of departments andpositions. I told Mr. Ando, who was then President, that
I wanted to set up a salon, and obtained his approval.
Since then, I have continued to hold the salon over the
past four years, with the Diversity Promotion Department
acting as the point of contact. Every time the salon isheld, between five and ten employees participate. These
participants talk about everything, including the Company’s strengths and drawbacks, how they usually feel, andtheir personal problems. So far, the salon has been helda total of 40 times at the Company’s Nagoya and Kashima Factories, and at Kawasaki Factory of San ChemicalCo., Ltd. The total number of participants is estimated tohave been between 400 and 500.
Although I am a person from outside the Company,

Sanyo Chemical accepted my request to organize thesalon. I’m sure that this is because salons have takenroot in the Company as part of its corporate culture.
During a two-hour salon session, participants talk about
their honest feelings, even if they are mutual strangers,
and empathize with and encourage each other. I was truly surprised to know the Company has such a corporate
culture. I believe that the historical background of valuingothers has made the Company what it is today.
Obata: It may be true that you couldn’t have inaugurated
a salon without the Company having such a corporate
culture, but in Japan there may be very few outside
directors like you who try to do things like that. Even
though the salon system already existed in the Company,
I feel that an Outside Director’s involvement will lead tothe system becoming even more unique.

Outside Directors play their roles
Sano: It is less than one year since I was appointed Outside Director. However, I can receive explanations about
the discussion topics before a meeting of the Board of
Directors. At the board meeting, we discuss many challenging tasks, such as new businesses and joint ventures. Nevertheless, the directors who have drafted theplan explain it cheerfully. I think that these directors enjoy
doing what they want to do in a free atmosphere, despite
the feeling of tension present during the board meeting.
When Mr. Obata asked the question, “Is there a numerical target?” Mr. Ando and Mr. Higuchi replied, “No. Even
if we fail, we can return to the original state.”
Obata: When I heard them saying that no numericaltargets were necessary, I said, “I don’t think that’s a goodidea.” My remark evoked a debate, which I believe was
not unproductive. To ensure the sound performance of
the Board of Directors, it is necessary to always have anantithesis. However, even though the Company encourages candid dialogue, it is actually difficult to present an
objection because of the superior-subordinate relationships. It is the Outside Directors who can raise an objection against management.
Sano: The Chairman, President, and we Outside Directors are all in the same boat called “Sanyo Chemical.”Sanyo Chemical Group Integrated Report 2022

50

Profile

Spirited Discussion Meeting of Outside Directors

When the boat is wondering which direction to go,
although I have no chemical expertise, I try to make acomment from an objective perspective after considering
what stakeholders, including minority shareholders, will
think. I believe that it is exactly the reason for the existence of Outside Directors.
Obata: Also, regarding the practice of WakuWaku Management, we should play our roles as Outside Directors. To
have every employee become WakuWaku, the Company
may allow individual employees to do what they want.
However, if their efforts are dispersed in all directions, theCompany, with its limited resources, will be in great trouble.
It is therefore extremely important to bring our efforts intoalignment while promoting the WakuWaku Explosion of everyone. The keyword is “profit.” The concept “Every department is a profit center” is probably based on the idea that if
each and every employee is encouraged to think of profit,
then their efforts will naturally be aligned in the direction
indicated in the management policy. As Outside Directors, I
think that we must have the function to check this.

The Board of Directors continues to evolve
Shirai: The Board of Directors has also made significant
progress. When I joined the Board four years ago, resolution matters were given to us on the spot during a board
meeting. So the Outside Directors requested information
sharing and background briefings on these matters inadvance. Now, we can receive prior notice even regarding matters currently under discussion within the Company, and explanations about a new business or project
are provided not only by directors but also by young
employees in charge. As an aside, it is inspiring for us
to see these young employees taking charge of the new
business and tackling their responsibilities with a strong
awareness of the issues. With many young employees
like them, the Company’s future looks bright.
Obata: In the past, almost nobody spoke at a board
meeting. In-house meetings, such as department meetings, managing executive officers’ meetings, management meetings, and the Board of Directors’ meetings,
were held with almost the same attendees. So, there
were no cases of decisions that had been discussed being overturned at a board meeting in the long run. How-

51

Sanyo Chemical Group Integrated Report 2022

ever, now that the Company has Outside Directors, somedebates may occur at the board meeting. Even after I
say “I see” when receiving a prior explanation, if questions arise during later consideration, I will not hesitate to
ask the questions. This is because if I say “Yes” without
being convinced of the matter at the board meeting, it
may cause the Company to choose the wrong path.
Shirai: In such a case, another discussion may begin.
We may also have to start over again at the next meeting.
Obata: If so, decision making will be delayed a little.
However, if there is a true need for urgency, the Company can hold an extraordinary meeting of the Board of
Directors. I think that it is our role to say something that
may turn everything upside down.
Shirai: The minutes of board meetings have changed aswell. Previously, the minutes just reported that “All directors agreed without objection,” and did not record who
said what during the meeting. For this reason, we haveno way to know what was discussed at past meetings. To
resolve this problem, the minutes now include all information about who said what.
Obata: Immediately after I became an Outside Director, ameeting of the Board of Directors was held to deliberate
on a considerably critical issue. Since I had only a little
information obtained from newspapers, I was going to say
nothing and listen at the meeting. However, Mr. Higuchi
asked every member to make a comment. It was the firsttime I had been called on to speak at a board meeting.
Sano: It is innovative that the President sought a comment from an Outside Director, who did not know muchabout what was going on until then. However, the factthat you were given an opportunity to have your say indicates the Company’s expectation for Outside Directors.
Shirai: I remember that Mr. Higuchi repeatedly stressed
the importance of the issue.

Are the interests of minority shareholders
protected?
Obata: The Company was established under the nameof Sanyo Oil & Fat Industrial Co., Ltd., in 1949 by Toyo
Cotton and Toyo Rayon (now Toray Industries). Afterbeing renamed Sanyo Chemical Industries in 1963, theCompany was listed in 1968. Since then, the percentage of general shareholders has gradually increased,
but about 40% of common stock is still owned by large
shareholders at present. Nevertheless, the Company is
not managed by large shareholders, so we can recognize that the autonomy of the management is maintained.
To reward all shareholders, the Company aims to improve its dividend payout targeting a payout ratio of 30%
or higher. The ratio was 56% at the end of fiscal year
2021. Despite the spread of COVID-19 infections andthe impact of Russia’s invasion of Ukraine, our profit has
increased relatively steadily. It is therefore safe to sayfrom an Outside Director’s perspective that none of theCompany’s management policies are disadvantageous
to minor shareholders.

Shirai: That’s right. I am involved in discussions at board
meetings with the sheer desire to provide accountability
to stakeholders. I always deliberate on resolution mattersfrom this viewpoint.
Obata: Whenever attending a board meeting myself, I
intend to discuss matters from the standpoint of shareholders and other various stakeholders while taking into
account the global environment and the Company’ssocial contribution. I also feel that the Company ensures
benefits for stakeholders. In this sense, I don’t think there
is anything to worry regarding the interests of minor
shareholders for the time being.
Sano: In considering how we can directly protect theinterests of minor shareholders, I think the first thing is toprovide information accurately and fairly.
Shirai: As for shareholder composition, I would like tosuggest another point of view. Since about ten years
ago, companies have reduced cross-shareholdings, as
required by Japan’s Corporate Governance Code. In thissense, it is the Company’s clear mission to figure out away to increase the number of stable shareholders.
Previously, after a general meeting of shareholders,the Company held a dinner party to exchange with general shareholders. The event was a precious opportunity tohear various opinions. Participating shareholders expressed their views about the Company’s direction, andsometimes I was asked personal questions. We were able
to feel closer to shareholders and hear what they had tosay. The dinner party is no longer held, due to COVID-19.
I think that we need more opportunities for interacting withshareholders. Currently, these occasions are limited tosome management personnel and IR department members. It is important for us Outside Directors to create
these opportunities or participate in interactive events.
Sano: Indeed, direct dialogue with shareholders is very
important.

What is WakuWaku?
Sano: WakuWaku can be defined in many ways. Some had
the opinion that WakuWaku means “continuing to increasesalaries.” It is true that sufficient income is necessary, but
employees cannot be happy just by earning a good salary.
They need to develop motivation spontaneously.
It is about half a year since the WakuWaku Management policy was launched. I think that Mr. Higuchi and
Mr. Ando also feel WakuWaku now. The same holds true
for directors, auditors, and executive officers. How about
employees in middle management? There will be no future for a company without a functioning cadre of middle
management that will form the next generation of senior
managers. The challenge is to find a better method toinspire WakuWaku feeling of all those in middle management and general employees.
Obata: WakuWaku Management is based on an interestingidea. In the present age, many people think that what matters is not always the corporate growth rate or profit ratio.
Different people have a different sense of values, with some

StrategyFoundation

finding value in making a social contribution while someothers want to promote diversity. I think that WakuWaku
Management intends to help every employee achieveself-actualization, which will lead to the Company’s growth.
Sano: The internal multiple work system is now in thetrial phase. I think this system is wonderful. It will serve
as a source of WakuWaku feeling. I know of some othercompanies that permit employees to have a second job
outside. However, by offering the internal multiple work
system, Sanyo Chemical sends the message that it will
support employees’ initiatives, saying, “You are encouraged to find an interesting or attractive theme anywherein the Company, and take on new challenges to pursuethat theme.” We also need to review the conventional work
styles. I expect that in the process of disseminating thesystem’s concept company-wide, employees will become
more motivated and have higher job satisfaction, resulting
in the creation of a culture that is full of WakuWaku.
Shirai: During the Kinmirai Camp, we had the following
discussions: Some employees leave the Company, whileothers join from other companies. Those who could not display their abilities at Sanyo Chemical may move to anothercompany, where their skills are more highly regarded. If
so, it would be wonderful. Also, there may be mid-career
workers who want to join the Company. We would be very
pleased if they are able to exhibit for us the abilities thatthey cultivated at the previous company. The essential idea
is that WakuWaku feeling should be shared not only within
the Company but also across society at large. It was arefreshing surprise to learn that the management of Sanyo
Chemical has a truly broad conception of WakuWaku.
Obata: Beside WakuWaku of employees, Sanyo Chemical values WakuWaku of shareholders, society, and theglobal environment. The Company aims to offer WakuWaku feeling to all stakeholders as an ultimate outcome(creation of social value). This is the concept of WakuWaku Management. To be a company that makes all
stakeholders WakuWaku, I am sure that profit is the key.
Sano: How true. The Company mission is to “Establish
a better society through our corporate activities.” That
is indeed the intended outcome, isn’t it? I was happy tohave a very meaningful discussion today, just as we didduring the Kinmirai Camp.

Sanyo Chemical Group Integrated Report 2022

52

Profile

StrategyFoundation

Directors, Audit & Supervisory Board Members, and Executive Officers
As of July 2022

Directors
Date of birth: March 7, 1953
Apr. 1977
Joined the Company
Jun. 1998	Director, Deputy General Manager of Research & Development DivisionJun. 2003	Executive Officer, General Manager ofResearch & Development Division

Takao Ando
Chairman

Jun. 2008
Managing Executive Officer
Jun. 2010	Director, Senior Managing Executive Officer
Jun. 2011

Representative Director, President & CEO

Date of birth: August 20, 1961
Apr. 1984	Joined Shikishima Boseki Ltd.

Jun. 2012	President, Representative Director of SAN
NOPCO LIMITED

Apr. 1997	Joined Kansai Employers’ Association
Apr. 2004	General Manager, Membership Administration
Apr. 2013	Joined Japan Institute for Women’s Empowerment & Diversity Management

Jun. 2014	Executive Officer of the Company
President, Representative Director of SAN
NOPCO LIMITED
Jun. 2015
Managing Executive Officer

Apr. 2001	Director, General Manager of Research &Development DivisionJun. 2004	Executive Officer, General Manager of International Project Promotion Division

Date of Birth: November 7, 1959
Apr. 1984
Joined the Company

Akinori Higuchi
Representative Director,
President and CEO

Jun. 2021	Chairman
Chairman of the Board of Directors (to present)

Jun. 2016

Director, Managing Executive OfficeJun. 2018

Director, Senior Managing Executive Officer

Jun. 2020	Representative Director, Executive Vice
President
Jun. 2021	Representative Director, President & CEO(to present)

Apr. 2014	General Manager, Kansai Office (to present)
Jun. 2021	Outside Director of the Company (to present)

Yumi Sano
Outside Director

Audit & Supervisory Board Members

Kohei Maeda
Representative Director,
Executive Vice President,
in charge of Production,
and General Manager of
Production Division

Masahiro Harada
Director, Managing Executive
Officer, supervising Business
Planning, General Manager ofEnergy Business Division,and General Manager of
Biotechnology & Medical
Division

Date of birth: November 3, 1960

Date of birth: January 22, 1960

Date of birth: September 5, 1957

Date of birth: July 6, 1958

Apr. 1985
Joined the Company
Oct. 2012	Executive Officer, General Manager ofResearch & Application Division, and Head of
Head Office Research Laboratory
Jun. 2014	Director, Executive Officer, General Manager
of Research & Application Division, and Headof Head Office Research Laboratory

Apr. 1983
Joined Tomen Corporation
Oct. 2005	General Manager of Industrial Materials
Department

Apr. 1982
Nov. 2009
Jun. 2012

Apr. 2009

May. 2015
General Manager of Mishima Plant
Jun. 2016	Member of the Board of Toray Industries(Malaysia) Sdn. Berhad
President of Penfibre Sdn. Berhad
Jun. 2018	Full-time Director, Deputy Representativefor Malaysia of Toray Industries, Inc., Toray
Industries, Inc.
Vice President of Toray Industries (Malaysia)
Sdn. Berhad
May. 2021	Full-time Director in charge of Corporate Strategic Planning Division of Toray Industries, Inc.
Jun. 2021	Outside Audit & Supervisory Board Member of
the Company (to present)

Apr. 1983	Joined the Company
Jul. 2003	Deputy General Manager of Research &Development Division, and General Manager of Environmental Chemicals Research
Department
Jun. 2005	General Manager of Research & Application
Division
Jun. 2010	President, Representative Director and General Manager of Research & Development
Control Division of SAN NOPCO LIMITED
Jun. 2012	General Manager of Purchasing Division of
the Company

Jun. 2015	Director, Managing Executive Officer, incharge of Research & Development
Jun. 2019	Director, Senior Managing Executive Officer
Jun. 2021	Representative Director, Executive Vice
President, supervising R&D
Jun. 2022	Representative Director, Executive Vice President, in charge of Production, and General
Manager of Production Division (to present)

Hiroyuki Shimominami
Director, Managing
Executive Officer

Hirokazu Kurome
Outside Audit & Supervisory
Board Member (Full-time)

Date of Birth: February 8, 1964
Apr. 1989
Joined the Company

Date of birth: January 3, 1965
Apr. 1988
Joined Sumitomo Bank, Limited

Date of birth: July 1, 1953
Apr. 1976
Joined Toyota Tsusho Corporation

Jul. 2010	General Manager of Automotives II & Foam
Industry Department
Apr. 2017	General Manager of Electronic Materials,
Resins & Coloring Materials DivisionJun. 2018	Executive Officer, General Manager of Electronic
Materials, Resins & Coloring Materials DivisionJun. 2021	Managing Executive Officer, General Manager
of Business Planning Division and General
Manager of Energy Business Promotion Division
Apr. 2022	Managing Executive Officer, General Manager
of Business Planning Division and General
Manager of Energy Business DivisionJun. 2022	Director, Managing Executive Officer supervising Business Planning, General Manager
of Energy Business Division, and General
Manager of Biotechnology & Medical Division(to present)

Mar. 1990
Joined Toray Industries, Inc.
Sep. 2011	Manager of Finance & Accounting
Department, Member of the Board of Toray
Industries (Malaysia) Sdn. Berhad
Sep. 2017	General Manager of Finance Department of
Toray Industries, Inc.
Sep. 2021	Deputy General Manager of Administrative
Affairs Division of the Company
Jun. 2022	Director, Executive Officer in charge ofCorporate Ethics and General Affairs, andGeneral Manager of Administrative Affairs
Division (to present)

Jun. 1999	General Manager of Logistics Business Department
Jun. 2004
Member of the Board
Apr. 2006	Executive Officer
Jun. 2008
Managing Executive Officer
Jun. 2011
President & CEO, Representative Director
Jun. 2018	Chairman of the Board, Representative Director
Jun. 2019	Outside Audit & Supervisory Board Member of theCompany (to present)
Jun. 2020	Chairman of the Board of Toyota Tsusho Corporation
Outside Audit & Supervisory Board Member ofKDDI Corporation (to present)
Jun. 2022	Senior Executive Advisor of Toyota Tsusho Corporation (to present)

Kenichi Nishimura
Director, Executive Officer,
in charge of Corporate
Ethics and General Affairs,
and General Manager
of Administrative Affairs
Division

Date of birth: May 23, 1960
Apr. 1979	Joined ALL NIPPON AIRWAYS CO., LTD.
Jun. 1993
Member of Amagasaki City Council
Dec. 2002
Mayor of Amagasaki City
Jun. 2018
Outside Director of the Company (to present)
Jun. 2019	Outside Director of BROTHER INDUSTRIES,
LTD. (to present)
Jun. 2022	Outside Director of Royal Hotels Co. Ltd.
(to present)

53

President of Toyota Tsusho (H.K.) Co., Ltd.

Jun. 2013	Executive Officer of the Company
Director of San-Dia Polymers Co., Ltd.
Apr. 2014	Executive Officer,
President, Representative Director of SDP
Global Co., Ltd. (to present)
Jun. 2016
Director, Executive Officer
Jun. 2020	Director, Managing Executive Officer(to present)

Joined Toray Industries, Inc.
General Manager of Tsuchiura Plant
General Manager of Gifu Plant

Aya Shirai

Hideaki Obata

Outside Director

Outside Director

Sanyo Chemical Group Integrated Report 2022

Date of birth: February 18, 1951
Apr. 1973
Joined Sumitomo Electric Industries, Ltd.
Jun. 2004	Executive Officer, General Manager of HR &Administration DivisionJun. 2008	Managing Director, Vice General Manager
of Manufacturing Management & Engineering Unit, and General Manager of HR &Administration DivisionJun. 2009	Senior Managing Director of Nissin ElectricCo., Ltd.
Jun. 2010	Representative Director & Senior Managing
Director
Jun. 2011	President
Jun. 2017
Chairman
Jun. 2021	Outside Director of the Company (to present)
Special Adviser of Nissin Electric Co., Ltd.
(to present)
Chairman of Kyoto Prefecture Council ofSocial Welfare (to present)

Jun Karube
Outside Audit &Supervisory Board Member

Takafumi Horiie
Audit & Supervisory Board
Member (Full-time)

Yusuke Nakano
Outside Audit &Supervisory Board Member

Jun. 2014	General Manager of Research Administration Division
Jan. 2016	General Manager of Auditing Division and General Manager of Internal Control Department
Jun. 2019
Audit & Supervisory Board Member (to present)

Date of birth: May 15, 1969
Apr. 2002
Registered as certified public accountant
Jul. 2005	Executive Senior Partner of Seiyu Audit
Corporation (to present)
Sep. 2005
Registered as certified tax accountant
Jan. 2010
Head of NAKANO C.P.A. OFFICE (to present)
Dec. 2014
Outside Auditor of SK-Electronics CO., LTD.
Jun. 2015	Independent Audit and Supervisory Board
Member of Nissha Co., Ltd. (to present)
Dec. 2018	Outside Director (Audit and Supervisory
Committee Member) of SK-Electronics CO.,LTD. (to present)
Jun. 2021	Outside Audit & Supervisory Board Memberof the Company (to present)

Executive Officers
Hiroyuki
Tsuruta

Senior Managing Executive Officer,
supervising Sales, and General Manager
of Surfactants Division

Yuichi
Fujii

Managing Executive Officer, supervising
R&D, General Manager of Polyurethane
Division, General Manager of Research
Administration Division, Head of Head
Office Research Laboratory, and Head of
Katsura Research Laboratory

Hiroyuki
SusakiManaging Executive Officer, General
Manager of Corporate Planning Division

Yoshiyuki
Oku

Managing Executive Officer, General
Manager of Personnel Division

Motohisa
MiyawakiExecutive Officer, General Manager
of Engineering Division

Masahiro
Fukui

Executive Officer, General Manager
of Responsible Care Division

TatsuyaNakanoExecutive Officer, General Manager
of Performance Materials Division

MinoruTsuchiya

Executive Officer, General Manager
of Lubricant Additives Division

Sho
TakeuchiExecutive Officer, General Manager
of General Affairs Division

Koji
Nire

Executive Officer

YusukeYamamoto

Executive Officer, General Manager
of Industrial Chemicals Division

Representative Director andPresident of SAN NOPCO LIMITEDSanyo Chemical Group Integrated Report 2022

54

Eleven-year Financial Summary
Sanyo Chemical Industries, Ltd and Subsidiaries

Annual

FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021(Millions of yen)

141,041

142,652

165,183

167,045

157,992

150,166

161,692

161,599

155,503

144,757

162,526

Operating profit

5,762

6,186

8,110

8,944

12,486

13,647

11,99912,91912,43911,932

11,868

Ordinary profit

6,958

7,266

9,212

10,27813,294

15,341

13,866

15,205

12,704

11,99912,771

Profit before income taxes

6,711

6,773

8,179

9,554

11,64013,854

12,144

7,541

11,008

10,638

10,734

Profit attributable to owners of parent

3,704

4,179

4,918

5,876

6,926

10,192

9,272

5,345

7,668

7,282

6,699

Comprehensive income

4,370

6,565

11,071

15,341

2,627

11,196

11,356

(760)

2,178

15,272

8,082

Investment in plant and equipment

12,799

9,899

7,497

10,52014,333

13,50013,923

10,848

8,219

10,073

9,847

Depreciation

9,498

9,182

9,642

9,604

9,256

7,412

8,299

9,087

9,078

9,569

9,533

Research and development expenses

4,671

4,511

4,659

5,515

5,622

5,443

5,365

5,569

5,322

5,384

5,650

Cash flows from operating activities

8,872

13,293

15,76911,51822,625

20,416

15,71014,603

17,232

22,30011,328Cash flows from investing activities(11,473)(13,413)(8,659)(8,656)(13,510)(14,198)(14,198)(11,312)(11,115)(12,498)(11,704)

Cash flows from financing activities

42

406

(2,567)(2,922)(5,493)(1,043)(7,328)(1,492)(7,084)(4,146)(5,979)Net sales

Year-end(Millions of yen)

Total assets

149,196

155,438

166,529

181,029

175,321

186,863

199,179

193,630

178,873

195,723

200,194

Property, plant and equipment

54,44356,20856,07658,76660,87063,53069,88362,32460,716

61,25561,389Interest-bearing debts

15,236

18,64818,756

18,492

14,862

15,204

10,59911,985

9,667

9,274

7,887

Net assets

90,526

94,279103,907

117,688

118,284

127,651

136,270

132,623

130,097

142,951

147,032

Amount per share(Yen)

Basic earnings per share

33.59

37.89

44.60

53.29

62.83

462.28*1

420.57242.50347.87330.34303.76

Net assets per share

791.46827.72899.24

1,014.19

1,016.06

5,515.51*1

5,901.23

5,868.58

5,789.88

6,371.77

6,549.60

Dividends per share

15.00

15.00

15.00

15.50

17.00

100.00*1

110.00125.00140.00150.00170.00Major indicator(%)

ROA (Return on assets*2)

4.8

4.8

5.7

5.9

7.5

8.5

7.2

7.7

6.8

6.4

6.5

ROE (Return on equity)

4.3

4.7

5.2

5.6

6.2

8.7

7.4

4.1

6.0

5.4

4.7

Equity ratio

58.5

58.7

59.5

61.8

63.9

65.1

65.3

66.8

71.4

71.8

72.2

ROIC (Return on invested capital*3)

4.0

4.1

5.0

5.0

6.8

7.2

6.1

6.4

6.2

5.8

5.5

1,776

1,865

1,917

1,979

1,992

1,996

2,053

2,078

2,060

2,096

2,106

Other
Number of employees*1 Sanyo Chemical conducted a reverse stock split at a ratio of one share for every five shares on October 1, 2016. Net assets per share, basic earnings per share, and dividends
per share for fiscal 2016 were calculated on the assumption that the said reverse stock split was performed at the beginning of fiscal 2016.
*2 ROA (Return on assets) is calculated based on ordinary profit.
*3 Operating profit × (1 – tax rate) ÷ (interest-bearing debts + equity) ×100

55

Sanyo Chemical Group Integrated Report 2022

Sanyo Chemical Group Integrated Report 2022

56

Stock Information (As of March 31, 2022)

Company Overview (As of March 31, 2022)

Stock exchange listings

Prime Market of Tokyo Stock Exchange (Securities code: 4471)

Company NameSanyo Chemical Industries, Ltd.

Total number of stocks authorized

51,591,200

Date of Establishment

November 1, 1949

Total number of stocks issued

23,534,752

Head Office11-1 Ikkyo Nomoto-cho, Higashiyama-ku, Kyoto 605-0995, Japan

Total number of shareholders at end of period

11,051 (Up 1,220 from end of previous period)

Consolidated number of employees

2,106

Major shareholders (Top 10)

Breakdown of shareholders by type
Number of shares held(Thousands of shares)

Percentage ofshares held (%)

Toyota Tsusho Corporation

4,286

19.4

Toray Industries, Inc.

3,826

17.3

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

2,173

9.8

Nippon Shokubai Co., Ltd.

1,105

5.0

10.6％

ENEOS Holdings, Inc.

1,061

4.8

Custody Bank of Japan, Ltd.
(Trust Account)

915

4.1

Financial
institutions
15.6％

Sanyo Chemical Employees’
Stock Ownership Association

538

2.4

Government of Norway

323

1.5

DFA INTL SMALL CAP VALUE
PORTFOLIO

207

0.9

Name

Domestic bases

Securities companies
1.3％

General companies
48.3％

Treasury shares
6.0％
Foreigninvestors(including

Number ofshareholders

companies)

Head Office

Head Office (Kyoto)

Research laboratories

Research Laboratory (Kyoto), Katsura Research Laboratory (Kyoto)

Branch Offices

Tokyo and Osaka

Sales & Marketing Offices

Nagoya Area Sales & Marketing Office (Aichi),Chugoku Area Sales & Marketing Office (Hiroshima),
and Nishi-Nihon Area Sales & Marketing Office (Fukuoka)

Factories

Nagoya (Aichi), Kinuura (Aichi), Kashima (Ibaraki), and Kyoto

11,051

Private individuals/Other
18.2％

Group companies
Performance Chemicals GroupTHE BANK OF NEW YORKMELLON 140042

172

0.8

(Notes) 1. Treasury shares are not included in the number of shares owned by the shareholders listed in the table above. Treasury shares (1,418,817 shares) are excluded in
calculating “Percentage of shares held.”
2. The Company’s shares (56,600 shares) held by the trust whose beneficiaries are directors of the Company and established in line with the introduction of the stockbased compensation plan for Directors, etc., are included in shares (915,800 shares) held by Custody Bank of Japan, Ltd. (Trust Account) and not included in treasury
shares (1,418,817 shares).

Trend of stock price and trading volume

Logistics & Service GroupSDP Global Co., Ltd.

Sanyo Chemical America Incorporated*

Sanyo Chemical Logistics Co., Ltd.

SAN NOPCO LIMITEDSanyo Chemical Texas Industries, LLC

San Chemical Co., Ltd.

Sunrise Chemical LLC

Shiohama Chemicals Warehouse
Co., Ltd.

San-Apro Ltd.

San Nopco (Shanghai) Trading Co., Ltd.

San-Petrochemicals Co., Ltd.

DaXiang International Trading (Shanghai) Co., Ltd.

Sanyo Kasei (Thailand) Ltd.

San Nopco (Korea) Limited

Sanyo Kasei (Nantong) Co., Ltd.

SDP GLOBAL (MALAYSIA) SDN. BHD.

San-Dia Polymers (Nantong) Co., Ltd.

Sanyo Chemical Manufacturing Korea, Ltd.

SANYO CHEMICAL (SHANGHAI)
TRADING CO., LTD.

APB Corporation

Sanyo Kasei Korea, Ltd.

(Yen)

(Thousands of shares)

7,000

7,000,000

6,000

SANYO KASEI (TAIWAN) LTD.
*Renamed from SANAM Corporation on April 1, 2022,

6,000,000

Stock price (Left axis)
5,000

5,000,000

4,000

4,000,000

3,000

3,000,000

2,000

Trading volume (Right axis)

2,000,000

Editorial policy
Organizations covered

Reference materials

As a rule, this report covers the entire Sanyo Chemical Group, which comprises a total of 26 companies(as of March 31, 2022)—specifically, Sanyo Chemi-

In editing this report, we have referred to the International Integrated Reporting Framework
advocated by the International Integrated Reporting Council (IIRC) and the World Intellectual
Capital/Assets Initiative (WICI), and the Guidance for Collaborative Value Creation publishedby the Ministry of Economy, Trade and Industry of Japan.

cal Industries, Ltd., 20 subsidiaries, and 5 affiliates.
1,000

1,000,000

0

0
4

5

6

7

8

9

10

11

2020

57

Sanyo Chemical Group Integrated Report 2022

12

1

2

3

4

5

6

7

2021

8

9

10

11

12

1

2
2022

3

Period covered
Fiscal year 2021
(From April 1, 2021 to March 31, 2022)
However, some disclosures and business activities
undertaken after April 2022 are included.

For more details of the financial report in the Sanyo Chemical Group Integrated Report 2022,
please refer to the securities report.
Securities report URL: https://www.sanyo-chemical.co.jp/ir_info/annual_report (Japanese only)
For the sustainability report, please visit the following website.
Sustainability report URL: https://www.sanyo-chemical.co.jp/eng/sustainability

Sanyo Chemical Group Integrated Report 2022

58

Sanyo Chemical Industries, Ltd.
11-1, Ikkyo Nomoto-cho, Higashiyama-ku, Kyoto, 605-0995, Japan
TEL: +81-75-541-4311
URL: https://www.sanyo-chemical.co.jp/eng/

This Integrated Report is made of LIMEX, a new material mainly made from limestone.