The Denka Way

The
Denka
Way

Summer2023
Vol.16
Contents
02 Business Value Creation
Denka’s Challenge to Make 100% ofBusinesses “Three-Star Businesses”
08 Human Resources Value Creation
Denka’s Health andProductivity Management

14 Board of Directors
16 My Vision
Denkaʼs Future as Envisaged by
Each of Us
18 Denka TOPICS

2023 Vol.16

Summer

13 A Specialist’s Perspective

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

To acquire
three stars forall businesses

Unauthorized
reproduction prohibitedS p e c i a l F e at u re 1

Mission 2030
Business Value Creation

Definitions and conditions for three stars
Stars are awarded for meeting the criteria established for each of the three elements ofSpecialty, Megatrends, and Sustainability.

Denka’s Challenge to Make

100%

Megatrends

Speciality

Sustainabilityof Businesses“Three-StarBusinesses”
As part of Business Value Creation, one of thegrowth strategies of Management Plan “Mission
2030,” Denka aims to make all businesses “threestar businesses” by 2030. In this special feature,
we will explain exactly what this entails.

What is Denka’s approach toBusiness Value Creation

The meaning of
three stars“By 2030, we will increase the value of our human resources and management,
and we will focus on creating business value that combines the three elementsof specialty, megatrends, and sustainability.” In order to realize Denka’s New
Vision and Management Plan “Mission 2030,” portfolio transformation has been
identified as one of the key challenges.
Denka’s policy for portfolio management can be summed up as “100% threestar businesses.” We established the target criteria with a focus on “clarity,”“understandability through simple language and numbers,” and “ease of working

Maximizing profitability throughbusinesses that Denka can performbetter than anyone else

Focusing on
three promising growth areas

ROIC by product >10%
(Past three-year avg.)

Three focus areas:
ICT & Energy, Healthcare,and Sustainable Living

Denka will concentrate its management resources on businesses where
it can leverage its strengths and perform better than anyone else. In
addition to profitability, which is reflected in factors such as market share,
uniqueness, and technological capabilities (number of patents), we haveset ROIC (Return on Invested Capital) as a criterion to emphasize capitalefficiency.

Based on the analysis of megatrends that generate business opportunities, we have determined that businesses in the three focus areas of
ICT & Energy, Healthcare, and Sustainable Living hold significant growthpotential. As we move forward, our sole focus will be on product development and business creation within these specific areas.

Measuring business sustainability
with two indicators»L ess than 10,000 tons of CO2
emissions by product» Labor productivity by product over
5 million yen
Clear KPIs have been set for CO2 emissions, including a target of reducing emissions by 60% by 2030 compared to FY2013, with the ultimate
goal of achieving carbon neutrality by 2050. Additionally, businesses withlow labor productivity are likely to face difficulties in maintaining operations as the working-age population declines. As such, only businesses
that meet both of the above criteria are considered to have sustainablegrowth potential.

Representative three-star products
Spherical Silica/Spherical Alumina

POST* test reagents

Highly transparent resin Clearen®

These products are based on Denka’s
unique high-temperature firing technology, which was inherited from thecarbide business. As fillers for ICT-related
semiconductor encapsulants, they havebecome flagship products that havesupported the company’s revenue overthe past few years.

Demand for POCT test reagents soared
following the outbreak of COVID-19.
However, it is uncertain whether thisdemand will be sustained as the world
adapts to a “with-COVID” lifestyle. In
the future, there will likely be demandin other major disease areas, following
influenza and COVID-19.

Clearen is widely used for shrink labels
for beverage bottles, food packaging
containers, caps on cosmetics, andother products. With the development of
products utilizing biomass plastics andthe establishment of chemical recycling
technologies, further expansion ofdemand is expected.

Spherical silica and spherical alumina*Point of Care Testing

COVID-19 Rapid Antigen Test Kits

Clearen® (used on a PET bottle)

together toward a single goal.”
2

The Denka Way | 2023 Summer

The Denka Way | 2023 Summer

3Roadmap to certification

The road to 100% three-star businesses
Increasing the number of three-star businesses will contribute to boosting overall company revenue anddriving it towards sustainability. Now, let’s delve into the process through which each business can attain three stars.
In this section, we will outline the steps involved in the process.

Deliberations by
the Portfolio Transformation
Committee

The overall schedule

All of Denka’s existing businesses fall into one of the three focus areas, giving them one star for megatrends. This is
the starting line. The challenge going forward will be meeting the criteria for specialty and sustainability.

2027

The Portfolio Transformation Committee, chaired by the president, holds discussions on measuresto achieve a 100% three-star business portfolio.

2023

The first meeting, scheduled for July, will focus on measures to upgrade one-star businesses to

One starthree-star status. Subsequently, regular meetings will be conducted to address measures for two-

Deliberations start with one-star businesses.

1つ星

2029

Two stars

Three stars
Deliberations for two-star businesses will
begin in the final year of deliberations forone-star businesses.

star businesses and to evaluate the progress and effectiveness of measures implemented thus far.

2030
To 100% three-star businesses

The deliberation process

Result 1

1

2

3

4

5

Consideration of measures to
upgrade one-star and two-starbusinesses to three-star businesses in each division

Review of measures by the
Portfolio Transformation Committee Secretariat and selection of products for review

Explanation to
the committee, deliberation,
and approval of measures

Monitoring the progress ofapproved measures

Evaluation andcertification of star ratings

Each division will consider the current
status of the business and identify issues.
A roadmap for addressing these challenges and specific measures will then beformulated. The Portfolio Transformation
Committee Secretariat, led by the Corporate
Planning Department, will provide advice
and actively support these measures.

The Portfolio Transformation Committee
Secretariat will review the proposed measures received from each division, compile
a list of products for review, and submit it to
the committee chairman.

The Portfolio Transformation Committee will
periodically review the measures implemented by each department in accordancewith the status of the respective products.
They will assess the effectiveness andprogress of the measures and provide additional instructions or support as necessary.

Once a year, the Portfolio Transformation
Committee will evaluate and certify whether
each product fulfills the requirements toobtain a star rating. For products that have
not reached the three-star level, the committee will deliberate on the viability of theircontinued operations. Products deemed tohave potential will undergo a reevaluationof strategies for achieving three-star status
within each division.

Division representatives will provide specificexplanations of the proposed measures foreach product under review to the committee. The committee members will then deliberate on these measures. Once approved,
the division can begin executing them.

Certification asa three-star businessIf all criteria are met, the business will becertified as a three-star businessResult 2

Consideration of sale,withdrawal, etc.
After careful consideration, if it is determinedthat achieving three-star status for a particularbusiness may prove difficult, the committee will
explore alternative options such as selling orwithdrawing from the business.

Encouraging challenges and accelerating change

Makoto Sakai
Manager,
Corporate Planning Department

4

The Denka Way | 2023 Summer

The entire company must drive change, and the goal of achieving 100% three-star

On the other hand, it is not impossible for a one-star business to evolve into aThis time, we have provided simple and easily understandable indicators andbusinesses serves as a clear and unambiguous indicator of this objective. Currently,

three-star business in the next few years, becoming a long-term pillar of support

clarified the challenges associated with each product. Additionally, a budget has

some of our businesses are facing challenges in attaining early profitability andfor Denka. Denka’s history provides many examples. For instance, acetylene black

been allocated to address the current situation. I am confident that we can achieve

are burdened with labor-intensive operations and high CO2 emissions. While it is

was initially developed as a conductive material for dry cell batteries. Although

100% three-star businesses if each division embraces reform with determination

important to focus on day-to-day activities such as improving operations, reducing

the demand for this product declined temporarily, it has now become essential

and undertakes challenges that surpass conventional wisdom.

costs, and expanding product lineups, one-star and two-star businesses will struggle

as a conductive material in lithium-ion batteries and submarine cables. It is not

to reach three-star status solely through conventional efforts. Even for businesses

uncommon for a product once considered obsolete to regain relevance by pivoting

the transformation of each division, and together, we will strive to realize our goal ofthat are currently three-star, the decline sets in when transformation ceases.

markets and concepts.

becoming specialists who utilize the power of chemistry to create a better world.

The Corporate Planning Department is committed to providing utmost support for

The Denka Way | 2023 Summer5To acquire three stars for all businesses

Our challenges as described by four division managers
How will Denka’s divisions go about achieving a three-star rating for all businesses? The heads of each division discuss their aspirations toward this goal.

Electronics & Innovative ProductsLife Innovation

Elastomer & Infrastructure Solutions

Organizations and relationships unboundby conventional wisdom

Honoring the efforts of our predecessors
and passing on the business to the future

Concentrate management resources on
businesses we can do well.

If we are serious about change,
we will see three stars

Hiroto Horiuchi, Chief of Department

Hideki Takahashi, Chief of Department

Masahiro Omata, Chief of Department

Kei Hara, Chief of Department

To achieve three-star ratings for all products within this division, we will adopt the

For our existing product groups, such as influenza vaccines and testing reagents,

Of our 31 products, 26 of them are one star. It is no exaggeration to say that theWe will make the following efforts to achieve an all three-star rating.

following strategies to focus our efforts, allocate resources effectively, and revamp

it is crucial to analyze individual product characteristics, historical backgrounds,

achievement of our targets for FY2030 depends on our progress in this matter.

our business portfolio:

and other factors in order to identify weaknesses and make improvements. We

We will identify the businesses that we can do well and those that we cannot,

cannot solely rely on expanding sales. In fact, in certain cases, we must be pre-concentrate our resources on the former, and make this division an indispensable» Restructuring of one-star and two-star businesses: We will examine future plans,
incorporate measures for business continuity, and set targets with specific timeframes.

pared to discontinue sales. I firmly believe that the key to success lies in collabo-

part of achieving the company-wide goals of Mission 2030. Under this policy, we

ration between manufacturing, sales, and development.

will continue to take conventional approaches, such as examining the supply-de-» Developing and delivering optimal materials in a timely manner, aligned withmegatrends.
» Engaging in in-depth conversations with end customers and processors tocomprehend their concerns.
» Making contributions to fields where we have expertise.
» Making investments at opportune moments, or in other words, securing
production capacity in advance with an awareness of demand growth
I would like every member of this division to be aware of their respective
responsibilities, demonstrate commitment to the organization and their own

On the other hand, when it comes to new ventures like the G47Δ virus formand balance in the future, pursuing value by raising prices, accelerating newcancer treatment and IntelliPlex, we have yet to attain a specific threshold of

product development, and shifting to high value-added grades, while acceleratingorders, production, and sales. Therefore, our primary priority should be achieving

growth by aggressively investing in businesses where we can perform well.

rapid sales results before delving into problem identification and analysis. Nev-

One of the biggest challenges in our journey to becoming a three-starertheless, I encourage you to anticipate potential issues proactively and take thebusiness lies in the creation of new ventures. Therefore, we must also focus onnecessary steps to prevent them.

research and development.

To honor the efforts of our predecessors, who have painstakingly nurtured our

The FY2023 signifies a fresh start as we strive to break free from threevision, and find fulfillment in their work. While launching a product or expanding a

product groups thus far, and to ensure a seamless transition for those who willconsecutive years of operating losses. Our goal is to establish ourselves as abusiness in a timely manner may take considerable effort, overcoming these chal-support Denka in the future, it is imperative that we devote ourselves to becomingcore division committed to providing essential materials for the construction oflenges brings about joy and excitement, which serve as motivation for the next

an all three-star division.

social infrastructure, under the banner of “Sustainable Living.” Together with our

step forward. To this end, I believe it is important to have a culture that embraces
flexible ideas not bound by conventional wisdom.

6

The Denka Way | 2023 Summer

colleagues, we will approach our tasks with confidence and pride.

Polymer Solutions» Social implementation of chemical recycling: We will work from the perspectiveof how we can contribute to building a circular economy on a national andglobal scale.
» Increasing added value of existing products: We will move away from strategies based on optimistic thinking such as “When demand recovers…” and “If
PMMA* market conditions improve…”» New business creation: In the short term, our focus will be on creating newmarkets by making minor adjustments to existing products through interdepartmental collaboration. In the medium to long term, we will leverage external
resources such as CVC, open innovation, and M&A.
» Comprehensive business review: Depending on the item, we may restart thebusiness or implement radical measures.
Change is essential. We must communicate and act in a way that conveys
Denka’s seriousness to division members, suppliers, and customers.
*PMMA (polymethyl methacrylate): Acrylic resin, one of the typical transparent resins

The Denka Way | 2023 Summer

7Energize Your Mind and Body!

Denka’s Health andProductivity Manag ement

S pe c i a l F e at u re 2

Mission 2030
Human Resources
Value Creation

Let's Study!
Why is health andproductivity management important?
We interviewed Mr. Akatsuka, head of the Health Support Office, regarding thereason we are focusing on health and productivity management and health measures to be taken.
You can stay even healthier with support!
Let’s do our best and communicate
with family and coworkers!

My Health Tips

Move your body byplaying tennis

Daisuke Akatsuka
Deputy Director of
the HR Dept.
and Head of
the Health Support Office

Health and productivity management is our focus as we promote “human resources
value creation,” one of the pillars of our new management plan, “Mission 2030.” In thisarticle, we share why we are focusing on health and productivity management andwhat kind of health measures we will take.

Do you have a message for
employees?

What is health and productivity
management in the first place?

What kind of health measures will be taken?

It is a form of management in which companies

Denka has been promoting various activities

and many employees have healthy habits, such

To be honest, I myself had not been careful about

implement strategic initiatives to maintain and enhance

concerning employee health, such as healthas a good exercise routine. On the other hand, it

my health and used to be a smoker. However,

employee health. In recent years, more Japanesechecks and flu shots. However, in order toalso revealed that some offices have high smoking

one day, I felt that I would become seriously ill if

companies are taking great interest in it, and Denka has

strategically provide more support for employee

rates. Smoking can lead to developing diseases

I smoked another cigarette. From then, I became

defined health and productivity management as one of thehealth, we believed it necessary to identify what theand cause problems associated with secondhand

conscious of my health and strived to quit smoking

basic policies of Mission 2030. Why do companies evenissues were and to provide tailored support to deal

smoke,* so we would like to strengthen our efforts

by utilizing supplements. I am now working

care about their employees’ health? This is because, with

with each of them. To this end, we established theto prevent them. The most important thing in healthenergetically as head of the Health Support Office.

the shrinking population and declining birthrates, there

Health Support Office in 2021. The office started

and productivity management is prevention. We will

It is difficult to develop health habits without

is growing recognition that each employee is a valuable

by collecting and analyzing the health check results

also promote further improvements of other issues

changing your mindset. We would like to help

company asset. Health and productivity managementof each office. The results can be seen on page

to support employee health in various aspects.

create the opportunity for you to change and towill not only help reduce the number of employees not

10. We found the overall figures were not bad,able to work due to illness or injury but will also increase*Secondhand smoke: Smoke from the lit end of a cigarette. It comprises more toxic chemicals than the smoke inhaled by the smoker.

promote your health through various initiatives.

productivity and operation quality. Although we set hightargets in Mission 2030, such as making 100% ofbusinesses “three-star businesses,” these targets canonly be achieved if all employees are in good health sothey can exchange their knowledge and ideas at eachsite. In other words, it is not an overstatement to saythat employee health forms the foundation for achieving

Recognized as a
“White 500” enterprise

Denka was selected as one of the top 500 companies (“White 500” enterprises) in the large enterprise
category of the 2023 Certified Health & Productivity Management Outstanding Organizations Recognition Program. This program is organized by the Ministry of Economy, Trade, and Industry (METI) andthe Nippon Kenko Kaigi to recognize large companies in that excel in health management. This marks
Denka’s second consecutive year of being selected for the program.

Mission 2030.
8The Denka Way | 2023 Summer

The Denka Way | 2023 Summer

9Let's Check!

Let's Join!

Denka’s Health Report Card

Activities in health and productivity management

We analyzed the results of each office’s FY2022 health checks!
Let’s look at the numbers!

!

lain

Let

xp
ee

m

Nao Adachi
Health Support Office
HR Dept.

We are making various efforts to strengthen health and productivity management.
Let’s hear about them from some who partook in the health management activities.

My Health Tips

Go to a boxing gym
2–3 times a week

Percentage of Smokers

Let’s try harder

About 35% of some offices’
employees smoke!

People with healthy BMIs

Let’s try harder

About 35% are too skinny oroverweight

Build healthy habits!
&well: a health app

Percentage of people with healthy BMIs

loaded to your smartphone and can be set to match your pace.

65.3%

26.8%

Compared to the national average,
Denka employs a high percentage
of smokers. The percentages atsome offices are particularly high,exceeding 35%! We believe wemight have a lower aversion tosmoking because we are surrounded by smoking coworkers.
However, half of the smokers thatanswered our company survey
said they eventually want to quit,
so we think it is important tocreate opportunities to do so andto continue to support them.

We started to utilize the health app &well. The app can be downModern smartphones can now easily track your steps and heartbeat, but this app makes it even easier to record the status of your

64.5%

16.7%
Denka’s average

National
average

Currently, approximately 50% of employees have downloaded theapp, and we have heard people are using it every day.

National average

The percentage of Denka’s employees with healthy BMIs is slightly lower than thenational average. The percentage is lower compared to the data we collected in2016. This could be due in part to the pandemic reducing the number of opportunities to go out since 2020. We must be careful because obesity can lead to serious
health issues, such as arteriosclerosis, heart attacks, and strokes.

Itried it out!

Denka’s
averagehealth. You can also watch livestreams of light, doable workouts.

Advanced Specialty Materials Dept., Electronics & Innovative Products

Why not get it now?!
People with appropriate levels ofblood sugar, blood pressure, and fat

My Health Tips
Let’s try harder

About 65% need to be careful oflifestyle diseases

Good habits

Percentage of people with appropriate levels ofblood sugar, blood pressure, and fat

41.3%

73.6% 76.8%

Denka’s average

National average

10

The Denka Way | 2023 Summer

63.1% 63.7%

For iPhone
users

About 1,480
peopleparticipated!

For Android
users

Go to the gym 2–3 times
a week and/or get off the
train one station earlier

Thanks to &well, I developed an interest in health and fitness. As a way to manage steps
during the walking tournament, the app would send different supportive messages depending on how well I was doing. This encouraged me to push myself a little harder to do more
exercise and I was able to actively enjoy exercising. I also watch exercise livestreams, readand learn from health articles, and use other features. My morning routine has come to include
checking &well after I get up.

The 2nd labor and management jointly
sponsored walking contest!
In May 2023, we held a walking contest utilizing the &well step tracker.
Teams, made of 7–10 volunteers, competed by tracking their average steps

Good eating
habitsResponsible
drinking

Denka’s average

Adequate
sleep

over the period of a month. At the end, the top team of each office received aprize. We plan to host it again next year and hope everyone will participate!

National average

Exercise: Walk an hour a day, etc.
Eating: Limit eating close to bed-time (within two hours) to less than
twice a week, etc.
Sleep: Get a sufficient amount of sleep

When it comes to healthy habits, the average number of employees exercising anddrinking responsibly exceeds the national average. We hope to see these numbers
improve even more in the future!

I walked 7–8 km a day at my old job, but I have recently noticed I don’t walk much anymore. On top of that, I saw the people
with healthy body weight section of the non-financial KPIs and thought to myself, “oh no! I’m in trouble!” After that, there
was an announcement about the walking contest, so I decided to take the challenge. I set a goal of 7,000 steps a day, but I
wasn’t getting enough steps during my normal daily routine and it felt a bit laborious. However, once I began walking to meetmy goal, I was moving my body a good amount and started sleeping better. The contest made me re-think my lifestyle andwalking has felt very refreshing due to the recent pleasant breeze. I hope to continue this new habit.

Yuma Tajima
Corporate Communications
Dept.

It

ried it out!

Denka’s average continues to be marginally lower than the national average, andwhile numbers had been improving since 2018, they got significantly worse in
2022. We believe this is due to the increased frequency of eating out, which was
lower during the pandemic.

90.9% 86.5%

32.5% 29.5%

Good exercise
habits35.9%

Keep up the good work

Good exercise, eating,and sleeping habits!

Rika Tsuchida

My Health Tips

Eat and sleep well and workout with equipment at home

The Denka Way | 2023 Summer

11

A Specialist’s

Production management of emitters, “the eyes of electrons”

Perspective

Let’s think about our health together!
Denka’s Health Week
From May 29 (Monday) to June 2 (Friday), 2023, seminars were held intensively with a

What kind of future do on-site specialists anticipate based on Mission 2030?

goal to raise health awareness. The five seminars were on topics like oral care and healthmanagement in the 100-year-life era, and we also introduced efforts of the Denka Health
Insurance Society. The seminar titled “Health advice for the various stages of a woman’s life”
was a great success with many online participants. We also received the following comment:“The seminar was very educational and I learned how health is affected in different stagesof life.” We plan to host the event again with more content next year.

I want to quit smoking!
Remote smoking cessation counselling
It has been proven refraining from smoking gets easier after successfully abstaining for six months. That said, maintaining motivation throughout six months is not easy. In this program, with an app to support you on your cessation
journey, it is easy to stick with it as you can periodically do video calls with your counsellor. You can also receivequit-smoking medicines in the mail. If you are thinking of quitting, why not try out this program?

» F rom April 2023: Labor and management from each
office began holding meetings and decided to holda non-smoking day at least once a month (during
specified hours). Implemented in early 2023.
» F rom April 2024: Company-wide non-smoking days
(stricter hours) will be held on the 2nd and 22nd of
every month.
» F rom April 2025: No smoking during work hours oncompany property (except for during breaks).
» From April 2026: Do away with all smoking areas.

Itried it out!

Denka’s guidelines for
smoking cessation activities

My Health Tips

Walk 8,000 steps
a day and/or playgolf or baseball

Yuta Iwasaki, General Affairs Div., Administrative Dept., Omi Plant
I was in the habit of smoking 15 cigarettes a day. I took every raise in cigarette prices as
an opportunity to quit smoking, but I failed every time. During this time in which the global
movement to quit smoking has been growing, I was recommended to go to a smoking
cessation clinic. I was unsure whether I was strong-willed enough, but after I told my friends
and family, they supported me on my journey to success. My counsellor was a great source of
encouragement as I could call them any time I felt the urge to smoke. I believe determinationand telling someone were the keys to my success. If you are thinking of quitting, why don’t
you ask for support from those around you and search for a plan that works for you?

Do you have questions
about your health?
Use T-PEC’s 24-hour phone consultation service

Pursuing More Stable Production Management
to Provide High-quality Emitters
I want to learn more about thehealth insurance society’s policies!
The Denka Health Insurance Society
offers support in various areas.
Check the examples below!

If you have concerns about your health, medicine, caregiving, childcare, mental health, etc., you can use this service
to talk to a clinical psychologist or other mental health specialist. Consultations can be done over the phone, online,
or in person. Phone consultations are available 24/7, freeof charge. The service is run by T-PEC Corporation, and theWe handed magnets to everyone. Please stick themsomewhere easily seen so they can be referenced at any time. contents of your consultation will not be shared with Denka.

12

The Denka Way | 2023 Summer

Emitters are small cones of less than 2 cm thatmanagement to maintain high efficiency.” As there

incorporate micron-sized components. They areare many tasks that require advanced skills, they are

essential sources of electrons for inspection devices

making efforts to introduce production management

for semiconductor materials and other components.

systems and promote standardization and skill-lessMogi is a specialist that has been involved withprocesses through automation.

emitter products since joining the company. He is

Everything is to meet customer expectations.

Examples of available services

currently responsible for the production management“I feel a sense of achievement when we are able Full-coverage of smoking cessation treatment andquit-smoking medicine fees available via application●
 70% coverage of physical checkup and brain
screening fees● Coverage of cancer screenings and gynecology
exams up to 30,000 yenof Denka TFE, one of Denka’s flagship products.

to quickly provide products that meet the detailed“For emitters, we adopt high-mix low-volume

needs of our customers. We will continue striving to

production tailored to our customers needs,” heprovide high-quality emitters and develop them into

explains. “For this reason, we need to constantly

one of Denka’s representative specialty products.”●

Emitter
An important component thatemits electrons. It is used forelectronic microscopes, semiconductor inspection devices,and other products.
Specialist

Katsunori Mogi
Emitter Group, Emitter Section,
Functional Material Department,
Shibukawa Plant
Joined the company in 1989. Involved in the production ofemitter products, as well as improvement and R&D efforts. He
is currently in charge of post-process production managementfor Denka TFE, one of Denka’s flagship products.

monitor the production status and conduct process
The Denka Way | 2023 Summer

13

Board of Directors(as of June 22, 2023)

Here is the board of directors as of June 22, 2023.

Representative Director, President,
Chief Executive Officer (CEO)Chairman and Director

Manabu Yamamoto

Representative Director,
Senior Managing Executive Officer

Toshio Imai

Director and Managing Executive Officer

Kazuo Takahashi

Ikuo Ishida

Chief Technical Officer (CTO)
Chief Compliance Officer (CCO)
Purchasing Dept., Logistics Dept.,
Production & Process Technology Dept.,
Engineering Dept., Digital Strategy & Innovation Dept.

Chief Human Resource Officer (CHRO)
Corporate Planning Dept., HR Dept.,
Corporate Communications Dept.,
DCU, DCG, Chinese Business

Managing Executive Officers

Nobuyuki Yoshino

Kazuya Tokumoto

Hideki Takahashi

Rimiru Hayashida

Chief Scientific Officer (CSO)
New Business Development

President of
Denka Performance
Elastomer LLC

Life Innovation

Accounting Dept.,
Finance Dept.

Yasuo Nakatomi

Yukio Sasagawa

Hideki Toya

Masanobu Kosaka

Gosen Site

Omuta Plant

Assistant to New Business
Development
Innovation Center

Supervisor of Environmental
Measures Promotion
Environment and Safety Dept.,
Sustainability Promotion Dept.,
Quality Assurance Dept.

Michio Kawamura

Masahiro Kawai

Takeshi Hagiwara

Masahiro Omata

Managing Director, DCHA,
DSPL, DAPL

Chiba Plant

Omi Plant

Elastomers & Infrastructure
SolutionsKei Hara

Ken Watanabe

Hiroto Horiuchi

Tetsuo Noguchi

Polymer Solutions

Administrative Dept., Legal
Dept., Internal Control Dept.,
Secretary Dept.

Electronics & Innovative
Products

Shibukawa Plant

Executive Officers

Directors

Yoshiyuki Fukuda

Mizuhiro Uchida

Toishio Kinoshita

OutsideAudit Committee Member

Outside(Audit Committee Member)

Akio Yamamoto

Miyuki Matoba

Outside(Audit Committee Member)

Outside(Audit Committee Member)

14

The Denka Way | 2023 Summer

The Denka Way | 2023 Summer

15

My Vision

Vol. 02
New Visions

All Denka
Employees“

Denka’s Future as Envisaged by Each of Us

We will ask employees from various positions, generations, and workplaces about
the future they envision for Denka, changing the theme in each issue.
Continuous improvement on siteand problem solving
capabilities

Deep knowledge
and a wide
perspective

P a r t1 :What kind of specialist do you aspire to be?

Consideration andempathy

Taking on
unknownchallenges
in an enjoyable way

Leveraging
my experience andknowledge tobuild trust

Smile &
Ecology

Yasushi Kondo

Honoka Yokota

Yoshihiko Takagi

Engineering Group, Engineering Sect.,Organic Products Dept. No.2,
Omi Plant

Ultra High Purity Acetylene Black Group, Ultra High
Purity Acetylene Black Sect., Production Dept. 4,
Chiba Plant

Toyokalon Group, Toyokalon Sect.,
Production Dept. No.2,
Ofuna Plant

Flexible
service

Takaki Matsuo

Tsukasa Harigai

Kazuhisa Tatebayashi

General Affairs Section
Osaka Branch

General Affairs Section
Nagoya Branch

Environmental Material Section
Fukuoka Branch

A sales specialist
who contributes
to the backboneof technologicaladvancements.

Plant Biotech
Innovator”

A high level ofprofessional
sensitivity andcognition
Focus andpersistence

Helping
customers
reduce CO 2
emissions

Yu Ishimura

Bengt Schwemann

Tohoku Sales OfficeDenka Chemicals G.m.b.H

Learning
more toenrich mylife

Stefan Werner
Icon Genetics G.m.b.H
Head of ResearchContinuous
innovation
through challenges withconfidence
and courage

Takuya Ichikawa

Liu Rim

Lee Gyeoghae

Denka Corporation Sales and Marketing

Denka Inorganic Materials (Tianjin) Co., Ltd.

Denka Electronics Materials (Dalian) Co., Ltd.

The ability
to meetchallenges

Keen insight
towards
financial data

Challenge,
improvement,
and growth

Dedication
has no limits

Tan Yeechun

Goo LeeDenka Chemicals Development Suzhou Co., Ltd.

Denka Advanced Materials (Suzhou) Co., Ltd.

16

The Denka Way | 2023 Summer

Shen Xiaoching
Administrative Dept.
Denka Chemicals Shanghai Co., Ltd.

Liu Yishin
Denka Taiwan Corporation

Kadir Binti Abd Nuryazmin

Van Dinh Nguyen

Continuous Improvement Department
Denka Construction Solutions Malaysia Sdn Bhd.

Quality Management Section
Denka Advanced Materials Vietnam Co., Ltd.

The Denka Way | 2023 Summer

17

Introducing Denka Group news topics from April to June 2023.

TOPICS

Pick Up
Apr.

May

4-6
Apr.

Facilitating training for endoscopic treatment

Launch of simulators developed through an
industry-academia collaboration

Jun.

Denka project members
New Business Exploration Dept.,
Life Innovation

Advanced Materials Research Dept.,
Denka Innovation Center

Yuko Fukuda
Development
Based on the clinicians’ advice,
we strived to produce a realistic
tactile experience by integrating
sensory factors into the material
design.

Manami Narukawa
Development
We couldn’t see the actual
treatment, but we shared someinternal assessment videos withthe clinicians to get a better ideaof the techniques used.

Yan Wang
Overseas sales
At an exhibition of the medical society, we conducted a demonstration
using an actual endoscope device.
Since it is a medical product, weprioritized accuracy.

Yuka Murata
Domestic sales
I once again realized thesignificance of our product when
I heard clinicians expressing their
desire to practice with it until they
overcome their nervousness.

B

ased on joint research with Tohoku
University, Denka has developed asimulator for learning endoscopic hemostasis
techniques (using clips or cautery forceps) withendoscopes and other medical tools. This is a
first step of the Medical Rising Star®* Project,

Simulated practice. Just like in an actual endoscopic surgery, the doctors perform hemostasis while watching images on the monitor.

and Denka commenced test sales on May 1,
2023.
When digestive organs like the stomach andintestines experience bleeding, doctors often per-the anticipated growth of the medical simulator
sector, Denka is poised to contribute through its*Denka’s registered brand. STAR stands for “Simulator Training
model for Advanced high Risk endoscopic therapy.”

the Great East Japan Earthquake in 2011, there

An upper digestive tract model that
accurately reproduces the esophagus,
stomach, and duodenum

An ulcer model that replicatesthe injured organ

was a sudden surge of gastric ulcer patients in

To simulate bleeding, pseudo bloodflows through pipes
attached to theback of the modelthe disaster area, and it became crucial for as
many doctors as possible to master advanced
hemostasis techniques. Under these circumstances, Denka introduced its soft materials to
Tohoku University, and the joint development of a
medical simulator was initiated. This collaborative
effort resulted in the creation of a product that
accurately replicates the injured parts.
In the future, the product lineup will be
expanded to facilitate social implementation. With

18

The Denka Way | 2023 Summer

On April 3, the company entrance ceremony for FY2023
was held. A total of 160 new
employees, including 73
G-section members and 87
M-section members, joined
the company this year. During
the ceremony, President Imaigave a congratulatory speech,followed by the introduction of new members by business site. A representativefrom the new members remarked, “We are committed to embracing Denka’sCore Values: Initiative, Integrity, and Empathy. We will endeavor to become
valuable human resources that society truly needs.”

Denka has decided to strategicallyinvest approximately 12 billion
yen in strengthening the businessfoundation for the G47Δ forcancer treatment and enhancing
supply capacity in light of future
demands. This involves constructing a new manufacturing facility
at the Gosen Site Niigata Plant. The production of G47Δ involves working withlive viruses, which necessitates large-scale virus culture and specialized testing
technologies. Denka’s extensive expertise and know-how in the development
and manufacturing of vaccines and diagnostic reagents for viral infections arebeing utilized in this endeavor.

May

Exhibiting at the CHINAPLAS 2023,
Asia’s largest plastic and rubber exhibition

Reached an agreement withTransform Materials on the establishment ofa low-carbon acetylene chain

Denka’s Performance Plastics Dept.
exhibited at “CHINAPLAS 2023”
international plastic and rubber exhibition, which was held from April
17 to 20 at the Shenzhen World
Exhibition & Convention Center in
China. Recognizing the Chinese
market as the largest market for
performance plastic products, the department aimed to expand its customer
base and applications, inquire about needs, and exchange opinions with primaryusers. The department also introduced new products and promoted environmental initiatives such as chemical recycling and the production of MS, SBC,
and IP using sustainable styrene monomer.

With the objective of developing
technology for acetylene production
with reduced carbon emissions,Denka has entered into an agreement with Transform Materials, a U.S.
start-up, for joint research and theimplementation of demonstration facilities. The signing ceremony took place on May 23. Denka plans to introduce
production facilities into the Omuta Plant by incorporating Transform Materials’
acetylene and hydrogen manufacturing technology. The agreement is aimed atcontributing to achieving carbon neutrality by reducing CO2 emissions associated with Denka’s mainstay products, such as chloroprene rubber and acetylene
black, and by utilizing hydrogen, a by-product of the manufacturing process.

May

How medical simulators work

techniques were limited to actual surgeries orpractice using pig stomachs. In the aftermath ofEnhancing production capacity of
the G47Δ for cancer treatment

unique products.

form endoscopic hemostasis. However, opportunities for doctors and students to learn theseCompany entrance ceremony for
FY2023 heldApr.

An ulcer model made with
Denka’s special soft materials. It offers a realistic
tactile experience similar
to an internal organ. It
also has four holes thatcan simulate bleeding.

Apr.

This model was produced using 3D human body data.
It can be opened or closed (It is open in this photo).

“Bleeding”
stopped with clips

Jun.

Groundbreaking ceremony for a new building
at the Gosen Site Kagamida Plant

Launch of QuickNavi ReaderTM2,
a medical tool for diagnosing infectious
diseases

On May 30, a groundbreaking ceremony was conducted for the construction of a new manufacturing building at
the Gosen Site Kagamida Plant, which
is a manufacturing site for test reagents including antigen test kits. Thisnew building is being constructed forthe purpose of expanding Denka’s healthcare business by bolstering production
capacities and improving digitalization. The ceremony was attended by Toshio
Imai, President, and Kazuo Takahashi, Senior Managing Executive Officer, as
well as the Governor of Niigata Prefecture and the Mayor of Gosen City. During
the ceremony, Shinto rituals, such as a groundbreaking and the offering oftamagushi, were performed, and all participants prayed for a safe construction.

On June 8, Denka beganselling the QuickNavi ReaderTM2 densitometry analyzer
to medical institutions acrossJapan. The product iscompatible with six products
from the QuickNaviTM series,
which are rapid diagnostic
testing kits for detecting
novel coronavirus and influenza antigens. In comparison to its predecessor, the QuickNavi ReaderTM, thenew version not only detects the influenza virus but also the novel coronavirus,
adenovirus, respiratory syncytial virus, and mycoplasma.

The Denka Way | 2023 Summer

19