Koei Chemical Report

2022

Bringing 100 years of technology and trust,
now and to the futureKoei Chemical Report

2022

Contents

Introduction

1
1
2
3
5
7

Contents/Editorial policy
Corporate Philosophy/Basic Policy on Sustainability/Koei Chemical’s policy on SDGs
The History of Koei Chemical
Value Creation Process
At a Glance

9

Message from the President

11

Growth Strategy

11
13
14
15
16
20
21

Corporate Business Plan (FY2022－2024)
Accelerate Business Growth Strategy
Strengthen Business Foundations
Enhancement of Human Resources Development
Sustainability Strategy
Milestones Toward Carbon Net ZeroDX Strategy

Foundation for Value Creation

22
22
25
27
28

Governance
Responsible Care
Respect for Human Rights
Investment in Human Resources

Information

29
29
33
35
36

Data on Responsible Care
Financial Data
Third Party Opinions
Company and Investor Information

Editorial policy
Editorial policy
This report is intended to provide information to help many
stakeholders understand our activities to enhance corporate value.
It comprehensively covers our business strengths, growth strategy,reports on business performance, corporate governance system,
environmental and social initiatives, and other topics.
We strive to make these contents clearer and more readerfriendly by using graphs and pictures.
Reporting period
April 2021 to March 2022
(information for April 2022 and later is partially included.)Issuance
October 1, 2022

1 ｜ Koei Chemical Report 2022

Corporate Philosophy
Introduction“We aggressively act to grow our business by mobilizing all available intelligence andenergy with prime importance on credibility and integrity.” and“We shall contribute to the development of society through providing valuable products,
solutions and innovative technology.”

Basic Policy on Sustainability
Message from the President

Koei Chemical is committed to the following five goals, guided by our corporate philosophy, to contribute to theestablishment of a sustainable society through business.

│2 │We are committed to contribute to solving a variety of issues that are globally vital, suchas establishing diverse and inclusive society and achieving the Sustainable Development
Goals (SDGs), as well as doing business in compliance with accepted universal standards
and principles, including those concerning human rights, labor, safety, the environment
and anti-corruption.

│3 │We are committed to work closely with various stakeholders through promoting
spontaneous disclosure of information and open dialogue on the targets of oursustainability promotion initiatives and the progress of their implementation.

│4 │We are committed to carry out initiatives toward promoting sustainability, led by our
top management having taken firm pledges to this end and advanced by all officers
and employees across Koei Chemical with a shared strong sense of mission and great
enthusiasm.

│5 │We are committed to assess and improve our activities continually and proactively forpromoting sustainability by reviewing the progress of the activities periodically and fromholistic viewpoints.

Foundation for Value Creation

We are committed to achieving our own sustainable growth by accelerating innovation in
all departments to create both economic value and social value, while also contributing to
the establishment of a sustainable society through business.

Growth Strategy│1 │Koei Chemical’s policy on SDGs*
Koei Chemical will contribute to a sustainable society by achieving SDGs through diverse business activities.
Dialogue with shareholders and investors

Safety and health activities

Relationship with local communities

Environmental preservation activities

With employees

Information

Sales and R&D activities

Quality assurance activities*Sustainable Development Goals, which are adopted by the United Nations, are globally shared issues to be achieved by 2030.

Koei Chemical Report 2022

｜2

│ Introduction — The History of Koei Chemical │What can we do through the power of chemistry?
Koei Chemical’s solid achievements in the past 100 years and1917 – 1950s

1960 – 1970s

Building the foundation of our businessStarting the operation of our basic products
and expanding their production capacity

We built the foundation that leads to ourbusiness today. We commenced operationof acetic acid production facility in Osaka in
1917 and diversified the product line. In
1934, we started production of Formalin.

1931• Started to produce acetone andbutanol byfermentation.

1980 – 1990s
Accelerating product development andexpanding capacity (Stage I)
We started the production of 2-cyanopyrazine,
which is intermediate for antituberculosis drug, andanti-ulcer drug intermediate. Besides, we establisheda multi-purpose plant in Osaka for diversifying into
newly developed products such as intermediates forpharmaceuticals and agricultural chemicals.

We started the production of pyridinedelivatives and amines, which have still
constituted our product line-up. In 1971, we
opened a plant in Chiba for the productionof pentaerythritol, pyridine delivatives, andamines.

1964

1985

• Commences 2-cyanopyrazine production.

• Commences pyridine delivatives
production in the Osaka Plant.

1966• Expands the fine chemical facility

1980 Starts production of disposal heatpads.

for amines.

1952

1982 Constructs a multi-purpose plant toexpand the capacity of fine chemical
products such as amines and pyridinedelivatives.

• Started to produce pentaerythritol.

1990 “Industrial Technology Award” from the
Osaka Industrial Research Association
for the development of “CASCON-RESIN(functional modified epoxy resins)”.
1992 “KCS Award in Chemical Technology”
from the Kinka Chemical Society forthe development of an anti-ulcer drugintermediate.

1971• Starts production of formalin,“Technological Prize” from the Adhesion
Society of Japan for the development of
epoxy resins adhesives.

trimethylolpropane,sodium hydrosulfite,
and amines in the Chiba Plant.

1917 Koei Pharmaceutical Co., Ltd. isfounded in Osaka in 1917, andcommenced acetic acid production.

1995 Constructs a multi-purpose plantfor production of intermediates forpharmaceuticals and agriculturalchemicals.

1926 Koei Pharmaceutical Co., Ltd. changes
its name to Koei Co., Ltd.

1997 “Catalysis Society of Japan Award(Industrial Field)” for the synthesis ofpyridine using a zeolite catalyst.

1934 Commences formalin production.
1950 Commences m-aminophenol
production.

Listed on the 2nd Section of the Osaka
Securities Exchange.

Name changed to
Koei Chemical Co., Ltd.
1959 Starts production oftrimethylolpropane and formit.

Constructs a multi-purpose vaporphase plant.

1962 Commences amines production.

1998 “KCS Award in Chemical Technology”
from the Kinka Chemical Society for the
new synthetic method of intermediate
chloro nicotinyl insecticide.

1963 “Inoue Award” from Toryo Hochi
Shinbunsha for the production ofpentaerythritol.
1967 “Okochi Memorial Production Prize”
from the Okochi Memorial Foundation
for the production of pyridine delivatives.

1999 Constructs a new multi-purpose plantfor pharmaceuticals intermediates
prodction.

The Chiba Plant is opened andcommences pentaerythritol production.

1917

1920

1925

3 ｜ Koei Chemical Report 2022

1930

1972 Commences pyridine delivatives
production in the Chiba Plant.
1935

1940

1945

1950

1955

1960

1965

vision for the next 100 years
2010s

Accelerating product development andexpanding capacity (Stage II)
We constructed and started the operationof new multi-purpose plants (CM I, CM II) in
the Chiba Plant. In 2010, a new laboratory
was opened in Chiba, which set a footholdfor centralizing production and researchfunctions in Chiba.

• Starts the operation of a new multipurpose plant (CM II Plant).

• Starts the operation of a new plant for

agrochemical intermediates (CP II Plant).

2020s

Selection and concentration of businesses

Developing solution businessIn 2016, we closed the Osaka Plant andconcentrated its functions at the Chiba Plant.
We proceeded with the selection andconcentration of businesses by selling thepentaerythritol business and constructing a new
multi-purpose plant (CM III Plant).

In 2020, we have changed the company name in Japanese (thename in English has no change) with strong desire to make aleap forward beyond the framework of chemical
manufacturing. In 2022, we started the operation of a state-ofthe-art multi-purpose plant, CM IV Plant. We shall make adramatic progress through expanding our solution business.

2013

2022

• Relocates the Tokyo Head OfficeMessage from the President

2006

Introduction

2000s• Starts the operation of a new

to the present address.

multi-purpose plant (CM IV Plant).

2017

Growth Strategy• Starts the operation of a new2020 Name in Japanese changed bydeleting the Japanese word “kogyo”
meaning chemical manufacturing..

multi-purpose plant (CM III Plant).

2022 Discontinues pentaerythritol
distribution.
Transferred listing to the Standard
Market of the Tokyo Stock Exchange.
Starts the operation of a new multipurpose plant (CM IV Plant).

Foundation for Value Creation• Constructs a general-purpose

2010

office building.

• Opens a new laboratory in the Chiba
Plant to centralize production andresearch functions in Chiba.

2013 Changed listing to the 2nd Section of
the Tokyo Stock Exchange.

2004 Starts to dispatch our employee to
Sumitomo Chemical Europe S.A./N.V.
2006 Relocates headquarters functions toTokyo.

1970

1975

1980

1985

2016 After the shuts down Osaka Plant, wechanges the location of the registeredhead office into Sodegaura-shi in
Chiba Prefecture, where we operates
Chiba Plant.

Information

2003 Relocates Head Office to Joto-ku,
Osaka.

2017 Suspends the production and transfer
the business of pentaerythritol.

1990

1995

2000

2005

2010

2015

2020 2021

Koei Chemical Report 2022

｜4│ Introduction — Value Creation Process │Based on the innovative technology we have developed,
we will contribute further to solving social issues and aim
Promotion of the Corporate Business Planknowledge and experience of over

Input

Core of the value creation(Management resources)

Koei Chemical’s strengths(core competence)

Material issues to be addressed as management priorities❶ Technical capabilities based on organic
synthesis❷ Multi-purpose facilities and high pressurehydrogenation facilities❸ Human resources that actively and boldly
take on challenges and solve issues

Financial capital
Shareholders’ equity
21,934 million yen
Shareholders’ equity ratio
63.2%

Manufacturing capitalMulti-purpose facilities

4 lines(October 2022–)

High pressure hydrogenation facilities
Vapor-phase reaction facilities
Formalin production facilities

5 lines
3 lines
1 lines

Sumitomo Chemical Group’smaterial issues for sustainable value creation

Material issues
for social value creation

Material issues
for future value creation• Contribute to the environment• Contribute to the food supply• Contribute to healthcare• Contribute to ICT• Advance innovation• Bolster competitiveness leveraging
DX• Human resources: DE&I*,

growth & development, health*Diversity, Equity & Inclusion

Intellectual capital
R&D expenses
Domestic patents
Overseas patents

1,036 million yen
6850

Foundation for business continuation• Occupational safety and health, and operational safetyand disaster prevention

Human capital
Number of employees(Of which researchers)(Of which PhD holders)

401
59
17

Social capital
Corporate philosophy
Overseas sales ratio

5 ｜ Koei Chemical Report 2022

Page 2

55.8%• Respect for human rights• Compliance• Product safety and quality assurance• Cybersecurity• Anti-corruption

Introduction

to enhance corporate value.
“KX2.0: Striving for transformation utilizing
100 years” (FY2022–FY2024)

Message from the President

Outputprocess(Outcome of management activities)

Business activities of Koei Chemical

Net sales
21.4 billion yen
Growth Strategy

Corporate Business Plan
“KX2.0: Striving for transformation utilizing
knowledge and experience of over 100 years”

Economic value(Targets for FY2024)

ROIC
8%

KOEI Vision 2030

CCC

❶ Accelerate business growth strategy❷ Strengthen business foundations

Payout ratio
Approx. 50%
New product sales ratio
20%

Net sales
30.0 billion yen
ROICFoundation for Value Creation❸ Enhancement of human resources
development

151 days

10%

Social value

Business description
Production and sales of❶ Pharmaceuticals and agrochemicals
Intermediates and raw materials forpharmaceuticals, agrochemicals, etc.
❷ Functional chemicals
Organometallic catalysts, ionic liquids, opticalmaterials, and electronic related materials

50% reduction(compared with 2013)
by FY2030

CCC
100 days

Achieve carbon neutrality
by FY2050
Improvement in energy
efficiency etc.
1% reduction per annum(from each previous year)

Information❸ OtherResin products, industrial chemicals, etc.

GHG emissions

Percentage of female newgraduate hires
20% or more
Employment rate of persons
with disabilities
2.5% or more

Koei Chemical Report 2022

｜6│ Introduction — At a Glance │Sales breakdown by product group
OthersPharmaceuticals
and agrochemicals

2,844 million yen
16.4%

6,589 million yen
38.1%

Sales breakdown by region
North America, etc.

Japan

1,547 million yen
8.9%

7,638 million yen
44.2%

Europe2,486 million yen
14.4%
FY2021
net sales

FY2021
net sales

17,296

17,296

million yen

million yen

Functional chemicals

Asia

7,862 million yen
45.5%

5,624 million yen
32.5%

Production and sales ofBusiness
description• Pharmaceuticals and agrochemicals(Intermediates and raw materials for pharmaceuticals, agrochemicals, etc.)• Functional chemicals(Organometallic catalysts, ionic liquids, optical materials, electronic related materials, etc.)• Other (Resin products, industrial chemicals, etc.)

Raw materials for pharmaceutical intermediates Raw materials for agrochemical intermediates Ionic liquids (KOELIQ®)

Performance(FY2021)

7 ｜ Koei Chemical Report 2022

electronic related materials

Net sales for FY2021 amounted to 17,296 million yen. This was a result of steady sales of catalystrelated products and agrochemical-related products, as well as increased shipments of opticalmaterials-related products, while shipments of pharmaceuticals-related products decreased.
Operating Income amounted to 508 million yen and ordinary profit 802 million yen, mainly as a resultof rising raw material and fuel prices and increased costs due to our shut-down maintenance thattook place twice during the fiscal year.

A leading company in the space of nitrogen-containing compounds <Why Koei Chemical?>Introduction

Why clients choose us: reason 1

Why clients choose us: reason 2

Why clients choose us: reason 3

Technical capabilities developed over 100 years

Custom synthesize

Our creative and pioneering research anddevelopment continues to gain high reputationin the chemical industry. We also have first-rate
synthesis techniques that allow for developing
processes using explicit compounds, and ourorganic synthesis processes are of an industrial
level, meeting stringent requirements likeextreme low temperature, water-free, andoxygen-free conditions.

Using various production facilities for fineorganic synthesis, high pressure hydrogenation,
gas-phase reactions, and more, we construct
an efficient manufacturing process andsupply it as industrial products. We are
ISO9001/14001 certified. We produce and ship
all of our products to the highest standard of
quality assurance.

Message from the President

A rich variety of products
We offer various nitrogen-containing
compounds, including pyridines,
pyrazines, and over 100 varieties of aminecompounds. Efficient production switchingallows for manufacturing a range of
products. We also produce a wide rangeof ionic liquids using nitrogen-containing
compounds as cations.

Human resources capabilities as a source of value creation (As of March 31, 2022)
Number of employees

Researchers

59 12

5

in otherdepartments

Researchers account for 14.7% of all employees, which is at
approximately the same level as an average of Japanese chemical industry
companies (14%). Meanwhile, PhD holders account for 20.3% of all
researchers, it is higher than the average (8%).

Foundation for Value Creation

We have been actively recruiting for the
past several years, preparing for the newplant launch. The number of employees isroughly the same as that in the previous
fiscal year.

researchers

Growth Strategy

401

PhD holders(Source) National Institute of Science and Technology Policy of the Ministry of Education, Culture, Sports,
Science and Technology, Japanese Science and Technology Indicators 2021 [Research Material-311/2021.8]

Creation of business value that contributes to the essentials of society and businesses
Number of items we made annually

Approx.

150-60 – +450 C°

Information

We offer a wide range of products, including amines,
pyridines, pyrazines, ionic liquids, pharmaceutical andagrochemical intermediates, and organometallic catalysts.

Reaction temperature

Our Chiba Plant had its strength in production thatuses vapor-phase reaction and high pressure reaction
technologies. Recent introduction of facilities for extreme
low temperature reactions and for production underwater-free and oxygen-free conditions has enabledorganic synthesis that meets stringent requirements.

Koei Chemical Report 2022

｜8

Message from the President

Contribute to solve social
issues based on innovativetechnologies
We started our new Corporate Business
Plan in April 2022. Through the steady
implementation of the plan and incollaboration with our stakeholders, wewill strive to contribute to social issues
through our business activities and toenhance corporate value, aiming to develop
Koei Chemical KPIs (Key Performance
Indicators, established in September2021) for material issues for sustainablevalue creation.

Representative Director & President

Business Environment and importanttasks of Koei
Even as the impact of COVID-19 infection spreading, Russia’s
invasion to Ukraine, the friction between the United States
and China over Taiwan, and other geopolitical risks have risen
to levels not been experienced in recent years. From theviewpoint of our own business environment, the fragility ofthe supply chain around the world is gradually being exposed,
we are suffering from skyrocketing prices of raw materials andfuel and costs of logistics, domestic and overseas, at thesame time, it has become a major challenge to secure stablesuppliers. Under such circumstances, we keep making efforts
to mitigate our business risks considering all possibilities inmind, but also, signify these turbulent circumstances asopportunities, we will aggressively seek the possibility ofbusiness expansion.
On the other hand, from a medium- to long-term
perspective, we have identified our major theme in action on
climate change. The chemical industry has both aspects ofpositive environmental impact through technological

9 ｜ Koei Chemical Report 2022

innovation and negative environmental impact with highenergy consumption. Considering action on climate change as
the suitable opportunity to contribute to society, we believethat we are able to offer our own solutions to challenges
leveraging the organic synthesis-based technologies that wehave accumulated over the decades, such as the developmentof amine compounds as CO2 absorbents and the developmentof ionic liquids for dissolving cellulose at room temperature. In
addition to these technological challenges, we will makecompany-wide efforts to achieve goals which is certificated as
Sumitomo Chemical Group, like SBT2030 (greenhouse gas
reduction target for 2030) and carbon net zero for 2050.
As an R&D-oriented company positioned upstream in the
supply chain, we operate a solution business, proposing
solutions to customers’ requirements, especially to theirpotential needs, by leveraging our strengths in speedy andhighly adaptable customer services. Based on the innovativetechnologies that we have been developing until today, we
aim to contribute to solving social issues through our businessactivities by creating new technologies and developing new
applications.

Corporate Business Plan “KX2.0: Striving
for transformation utilizing knowledge
and experience of over 100 years”

Co-existence and co-prosperity
with all stakeholders

Growth Strategy

I have stated since before that we value two-way
communication to achieve co-existence and co-prosperity
with all our stakeholders, including shareholders, investors,
customers, business partners, local communities, andemployees and their families.
In particular, I keep calling on employees to pursue theirbest performance through professionalism, a proactive
attitude, and teamwork, so that they can grow together
with the company. We continue to undertake various
initiatives, establishing comfortable and open workplaces,
enhancing human resources development through various
training opportunities, enhancing HR systems to maintainemployees’ motivation, and providing assistance for thehealth and wellbeing of employees and their families so that
our employees can take pride in the work that they do.
To our shareholders and investors who support ourbusiness on the financial front, we will strive to further
enhance our corporate value and meet their expectations.
To this end, we will give our shareholders and investors
more opportunities to deepen their understanding of ourbusiness and growth strategies and to give us theiropinions and requests regarding management throughenhancing investor relations initiatives, such as holding
financial results briefings on a regular basis and publishingnews releases.
We will further strive to build mutually beneficial
relationships with our customers and business partners andto work together with them to achieve business growth.
I would like to ask all of our stakeholders to keep paying
close attention to Koei Chemical’s efforts and to continue
to support us.

Information

Koei Chemical Report 2022

Foundation for Value Creation

Sharing the “material issues for sustainable value creation”
set by Sumitomo Chemical Group, Koei established Key
Performance Indicators (KPIs) based on those material
issues in September 2021.
In terms of contribution to the environment which isone of the material issues, we have set the reduction of
CO2 emissions and improvement in energy efficiency
as KPIs. Regarding CO2 emissions, we achieved a 41%
reduction in FY2021 compared with FY2013, and we are
steadily working toward a 50% reduction by FY2030.
However, an extraordinary circumstance has contributed
to the reduction in CO2 emissions this year, the fact that

Message from the President

Contribution to creating a sustainable society

Introduction

This year is the first year of our new Corporate Business Plan
“KX2.0: Striving for transformation utilizing knowledge andexperience of over 100 years.” This slogan of “KX2.0: Striving
for transformation utilizing knowledge and experience ofover 100 years” inherits the spirit of the previous Corporate
Business Plan “Transformation KOEI (KX)” and indicates ourstrong intentions to further accelerate our contribution tosolving social issues and enhance our corporate value.
Through steady implementing three basic policies of the
Corporate Business Plan “accelerate business growthstrategy,” “strengthen business foundations,” and“Enhancement of human resources development”, we willachieve business targets of 21.4 billion yen in sales and 8%
ROIC (Return On Invested Capital) in FY2024, the final year of
the plan.
Under “strengthen business foundations,” one of theplan’s three basic policies, we are committed totransformation in four areas: digital transformation (DX),management transformation (MX), governancetransformation (GX), and sustainability transformation (SX).
Through these four transformations, we will enhance ourcorporate value by promoting innovation in all divisions,
including manufacturing, sales, R&D, and back office
departments.
This year, our brand-new multi-purpose plant (CM IV)
starts the operation. The CM IV plant is Koei’s largest multipurpose plant. While our most pressing task in the immediate
term is the smooth start-up of the CM IV plant, we believe
for it would contribute significantly to the expansion of salesof pharmaceuticals and agrochemicals intermediates andfunctional chemicals such as organometallic catalysts andionic liquids. To ensure that our multi-purpose plants,
including the CM IV plant drive the achievement of the
Corporate Business Plan, our all divisions including
manufacturing, sales, and R&D will work together to fulfill
the expansion of the pharmaceuticals intermediate andorganometallic catalyst businesses, exploration of applications
for ionic liquids, and the acceleration of new productdevelopment through synergies with the Sumitomo ChemicalGroup.

we carried out annual shut-down maintenance, which is
performed once a year on a regular basis, twice in theprevious fiscal year, it caused a decrease in production
volume. Instead of being satisfied with the status quo, wewill continue to place our efforts into reducing our CO2
emissions further. To achieve our challenging target ofcarbon net zero by 2050, I believe that we also need toactively implement initiatives such as introducing
innovative solutions. We will accelerate initiatives to thisend, such as the development of new ionic liquids that
dissolve cellulose at room temperature and of catalysts for
manufacturing amines aiming for low-temperature, lowpressure conditions that will help to reduce environmental
impact.
In addition to contribute to environment, we arecommitted to contributing to the realization of asustainable society through our business activities throughexpanding sales of products for applications that cancontribute to society, including contribute to the foodsupply, contribute to healthcare, and contribute to ICT ,engaging in R&D efforts such as advance innovation, andadopting KPIs for other material issues, such as bolster
competitiveness leveraging DX and Human Resources:
Diversity, Equity and Inclusion, growth & Development,
health.

｜ 10│ Growth Strategy — Corporate Business Plan (FY2022–2024) │Koei has formulated its new Corporate Business Plan for FY2022–2024.
Under the Corporate Business Plan, we will strive to enhance corporate value, through addressing various tasks
set forth in the basic policies of “accelerate business growth strategy,” “strengthen business foundations,” and“enhancement of human resources development.”
The plan’s slogan, “KX2.0: Striving for transformation utilizing knowledge and experience of over 100
years,” is imbued with our strong will to further speed up our contributions to solving social issues based on theinnovative technologies that we have been developing until today and to place company-wide efforts into digitaltransformation (DX), management transformation (MX), governance transformation (GX), and sustainability
transformation (SX).
Performances in Previous Periods of Corporate Business Plans (results)
Net sales(in 100M yen)

111

111

109

Exchange rate (yen/dollar)

109

173

181

183

185

FY2016FY2017FY2018FY2019Operating income(in 100M yen)

15

176

173

FY2020

FY2021

Net income(in 100M yen)

54

19
14

113

106

15
12
5

FY2016FY2017FY2018FY2019FY2020

FY202111

FY2016

Major Investment Projects Implemented for Future Business Expansion and Increased CompetitivenessCorporate Business Plan (FY2016–2018)
Challenges
Achievements◇ Key Projects
Consolidation of
Osaka plant shut down in 2016
production sites into Chiba.
Construction of CM III
Operations started in 2017 (Line 1), and 2019 (Line 2)
plant (2 production lines).
◇ Business restructuring
Transfer completed and Koei’s production terminatedTransfer ofin 2017.
pentaerythritol
Sales agency with Perstorp expired in 2022.
business to Perstorp.
Corporate Business Plan (FY2019–2021)
Challenges
Achievements◇ Key Projects
Decision taken in 2020.
Construction of CM
IV plant
Production started in October 2022
Amine plant (partial).
Restructuring ofbasic products plants
Gas-phase reaction plant.
Accelerate new
Pursue development of low-temperature curing
product development.
catalysts for polyurethane.
◇ Business restructuring
DX initiatives started.
Shift to high-valueHR organization structure, meeting/committees readded activities.
examined.

•
•
•

•
•
•
•

•
•
•

•
•
•
•
•

•

•
•

11 ｜ Koei Chemical Report 2022

FY2017FY2018

19

16

10

9
FY2019FY2020

FY2021

Challenges continuing further
Accelerate
new productdevelopment.

Strengthen basic
business.

low• Commercialize
temperature curing catalysts
for polyurethane.

applications/uses• Additional
for ionic liquids.
analysis and future• Profitability
production planning for a gasphase reaction plant.

Capital investments.

the return on the• Realizing
past capital investments.

Sustainability
development.

carbon net zero
• Promoteinitiatives.

Human resources
development.

middle managers’• Improve
management capabilities.
junior/young• Enhance
employees’ skills.

Corporate Business Plan (FY2022–2024)

KX2.0: Striving for transformation utilizing
knowledge and experience of over 100 years

Introduction

Net sales ∙∙∙ 21.4 billion yen
ROIC ∙∙∙∙∙∙∙∙∙ 8%

Business environment

Message from the President(1) Increase in socio-economic activities as to COVID-19 impact mitigates.
(2) Growth in frictions between the US and China; concerns over growing geopolitical risks.
(3) Rise in raw materials/energy costs.
(4) Acceleration in efforts to address social and environmental challenges as awareness ofsustainability enhances worldwide.
(5) Promoting DX-driven productivity improvement and pursuit of work-style reform.

Outlook for Major Product Areas
Basic Products

Specialty Products and New Business(1) Pyridines and pyrazines:
Antituberculosis drug intermediates: Stabledemand expected.
electronic related materials: Demand expansion
expected over the medium-to-long term.
Raw materials/intermediates for crop
protection products: Demand outlook andcost competitiveness to be reexamined.

(1) Organometallic catalysts andPharmaceuticals/crop protection
products intermediates:
Expansion in custom synthesis businessexpected.
(2) Ionic liquids/low-temperature curingcatalysts for polyurethane:
Acceleration of new productdevelopment.
(3) Synergy with Sumitomo Chemical Groupto be expanded:
Pharmaceuticals/crop protection products
intermediates.
Optical materials, organometallic
catalysts, etc.

(2) Amines:
Raw/materials/intermediates for crop
protection products: Steady demand
foreseen.
Expanded demand expected for CO2absorbing applications.

•••

Growth Strategy

•
•
•

•
•
•

Foundation for Value Creation

Basic policies

Performance Targets
Assumptions

1. Accelerate business growthstrategy

2. Strengthen businessNet sales(in 100M yen)
Operating income(in 100M yen)
Net income(in 100M yen)

FY2022

foundations

FY2024110 yen/$Naphtha price 82,000 yen/KL

50,000 yen/KL

130 yen/€

204

195

173

FY2023

Exchange 125 yen/$rate
135 yen/€

214
15

21

11

15
Information

9

300

10
8

5

3. Enhancement of Human
resources development

FY2021

2.3
EBITDA billion yen(results)

FY2022

FY2023

FY2024

3.6
billion yen

4.5
billion yen

5.3
billion yen(forecast)(plan)(plan)

FY2030(target)Koei Chemical Report 2022

｜ 12

│ Growth Strategy — Accelerate Business Growth Strategy │Basic products: Enhance competitiveness & Develop high-value added uses
sales of amines and pyridines and expedite new products• Expandcommercialization.
development of new applications (e.g., CO2• Accelerate
absorption).
• Pursue business expansion via collaboration with third parties.
competitiveness through fundamental cost reduction and• Improve
productivity enhancement measures.

Specialty Products and New Business: Expansion
smooth startup of CM IV plant (scheduled to start• Achieve
October 2022)• Find new applications for ionic liquids.
commercialization of low-temperature curing catalysts• Earlyfor polyurethane and accelerate development of applications.
organometallic catalyst and pharmaceuticals/crop• Expandprotection products intermediates business.
new product development through stronger• Acceleratecollaboration with Sumitomo Chemical Group.
new business fields (e.g., optical/electronic/battery• Explore
materials, environmental impact reduction).
new business models through combination of• Constructexisting and new technologies.
Business portfolio enhancementof product priorities in light of profitability and• Review
strategic importance as well as the implementation of PLCM
(product life cycle management) for maximizing profits.

Expansion of specialty products and new business

FY2021 (results)

New Product Sales Growth

FY2024 (plan)

New product sales (in 100M yen)
New Product Sales Ratio (%)

Basicproducts
60%

Net sales

17.3

billion yen

Specialty
products
and newbusiness
40%

Expansionof specialty
products
and newbusiness

Basic products
Specialty products andnew businessBasicproducts
49%

Net sales

21.4

billion yen

Specialty
products
and newbusiness
51%

43
8.5%

16

10.4 billion yen

10.5 billion yen

6.9 billion yen

10.9 billion yen

20.0%

FY2019(results)

7.8%

7.5%

14

13

FY2020(results)

FY2021(results)

FY2024(plan)*Definition of new products: Products marketed within past five years

13 ｜ Koei Chemical Report 2022

│ Growth Strategy — Strengthen Business Foundations │The aim of strengthening business foundations is to improve corporate value by making cross-functional initiatives
within the entire Company in the following four areas.

2) Managementtransformation(a) Enhance productivity andstrengthen competitiveness in
Manufacturing, R&D, SCM and
Office areas.
(b) Data scientists/
engineers’ skill
DXdevelopment.
promotion4) Sustainability(a) Improve KPIs for corporate
value creation.
(b) Create and implement a planand schedule for carbon
neutrality.

•
•

MX

MX promotion

Corporate
value
improvement

GX 3)

GX
promotion

SX

SX promotion

transformation(a) Enhanced use of new
management indicators
Return on invested capital (ROIC)
Cash conversion cycle (CCC)(b) Strengthen PR and IR activities.
(c) Pursue organizational
development.

Governancetransformation(a) Adapt to the new Corporate
Governance Code (CGC).
(b) Improve governance structure
and relevant rules.
Reorganization and enhancementof internal committees.

•

Capital Investment (on a decision-making timing basis)

We will aim for better management efficiency
with new management indicators.

Under the capital investment plan, we will strive to strengthen
competitiveness by maintaining and renewal our existing plants anddeveloping new products, while focusing on the realization returns ofpast business expansion investments.

206

Aggressive investment

199

153

151
8%

100

6%
4%

FY2020(results)

FY2021(results)

Sale of third party marketable securities

FY2022–2024(results)(plan)

Multi-purpose
Plant expansion
19%
Maintenance 8.1
and renewal billion yen
Base plant48%
restructuring
27%

FY2024(plan)

FY2030(target)

Maintenanceand renewal
22%

HR-related
30%
Maintenance16.4 Multi-purpose and renewal
billion yen
billion yen Plant expansion
47%
New product51%
developmentBase plant
relatedrestructuring
DX-related
18%
27%
5%

Business expansion and competitiveness improvement

6.2

Expansion in sustainable investment

Information

FY2019(results)

FY2019–2021(results)

Personnelrelated
6%1%Highly selective
investment

FY2016–2018

10%

Foundation for Value Creation

Reduction of inventories

ROIC (%)

Growth Strategy

Management Targets (ROIC and CCC)

CCC (days)

Message from the President

DX

Introduction

1) Digital transformation

Realizing returns onpast investments.

Koei Chemical Report 2022

｜ 14

│ Growth Strategy — Enhancement of Human Resources Development│
Fundamental directions for enhancement of human resources development
The Corporate Business Plan will address the three initiatives atright. The aims of these initiatives are to maximize the performanceof individual employees and, ultimately, lead to improvement ofoverall performance of the entire Company and the achievementof our management goals. Our ongoing tasks will be to strengthen
managers’ management skills, to develop employees’ capabilities
and skills, and to cultivate new employees’ fundamental skills.
We value the fair evaluation of employee performance, which willease the corporate culture and raise the motivation of employees.
We will undertake a flexible review of our HR systems to aim ouremployees can achieve a sense of purpose in their work.

1. Strengthening
management(a) Enhance management training(b) Continue assessor training(c) Establish workshops, etc. formanager-level employees

2. Developing employees’capabilities and skills andcultivating new employees’
fundamental skills(a) Review and strengthen
development programs in
manufacturing, R&D, and sales

3. Review of
HR systems(a) Establish career development system(b) Establish dual ladder system(c) Set challenge goals, review andeducate on evaluation criteria

Promotion of diversity, equity, and inclusion(1) Active recruitment (women’s empowerment, utilization offoreign personnel, employment of persons with disabilities)

shortened by 24 hours from 2019 levels to 1,891 hours for daytime
workers, and by 21 hours to 1,883 hours for shift workers.

[1] Women’s empowerment
Although we have always hired new personnel in an equal andfair manner regardless of gender, the ratio of female workers
actually remains low. Accordingly, we have set KPIs and targets
based on the Act on Promotion of Women’s Participation andAdvancement in the Workplace, and from now on, we will
make active efforts to increase the number of female personnel
and provide more opportunities for them to advance.
[ 2] Utilization of foreign personnel
We have three foreign personnel working actively in multiple
sections, with one more scheduled to join the Company in
FY2022. Going forward, we will also actively recruit people
who will be able to participate actively in our operations,regardless of nationality or gender.
[ 3 ] Employment of persons with disabilities
In May 2022, as part of our provision of employment opportunities
for diverse personnel, we established the Salad Bowl Farm, where
two newly recruited employees with disabilities are engaged inhydroponic cultivation. We will continue to provide opportunities
for diverse personnel to advance.

(4) Efforts to reduce long work hours(2) Reemployment program for retired persons
In accordance with the Act on Stabilization of Employment ofElderly Persons, we have introduced a reemployment programthat allows personnel to work until the age of 65 after reaching
the mandatory retirement age of 60. As part of our efforts forthe utilization of diverse human resources, we will consider
the amendment of this program based on the extension of
the mandatory retirement age from FY2022. Our goal will
be a program that encourages retired personnel to continue
demonstrating their experience, skills and other strengths.

(3) Diverse and flexible work styles[1] Flextime system
From the perspective of work-life balance, that is, the balance
between work and private life, including childcare, nursing care,and medical treatment, we have introduced a super flextime
system and a work-from-home system to further promote thecreation of an environment in which our personnel can manage
their time effectively.
[ 2] Reducing annual scheduled total working hours
With the aim of reducing actual total working hours, we worked
together with the labor union to achieve staged reductions ofannual scheduled total working hours in 2020 and 2021. As
a result, the annual scheduled total working hours have been
15 ｜ Koei Chemical Report 2022

We have a system of self-management of overtime based on
the belief that it is important for individual employees to be
conscious of how they work and spend their time on their workas they see fit. To encourage each person to manage their own
overtime, they report their overtime hours worked individuallyto the managerial personnel. We also strive to ensure proper
time management by using the PC based management systemand the access control system.
We have also instituted “No-Overtime Day” every Friday
and strive to raise awareness among employees about reducing
overtime through internal announcements, e-mail, and othermeans.
In the case long working hours are anticipated, employees
are asked to see an industrial physician or an occupational
health nurse appropriately.

(5) Company-wide percentage of female employees
As shown in the graph, female employees account for
approximately 10% of our workforce. The reason why we set
KPI and our target of the percentage of female new graduate
hires into more than 20% is to increase the percentage of female
employees across the entire Company in the medium to long term.
Initiatives to increase female employee retention rates include theenhancement of the childcare leave system and holding healthseminars targeted at female employees. Currently, we are actively
engaged in the recruitment of female operators, and in addition to
working to create a comfortable workplace and environment for
women, we are conducting initiatives to remove gender gaps by
job type. We are also actively pursuing the promotion of women
to management positions and aim to increase the percentage offemale managers in the medium to long term.
(excludes officers, includes temporary assignees)

Percentage of female employees
MaleFemale
10.5%

365
39
326

End of FY2019

10.7%
10.3%

400
42

444
44
400

358

End of FY2020

End of FY2021

│ Growth Strategy — Sustainability Strategy │Message from the Responsible Officer

Koei Chemical’s Approaches to Sustainability
Keiko Fukahori

Director, Managing Executive Officer, in charge of Research & Development Division, Sustainability
Introduction
Message from the President

To date, Koei Chemical has engaged in Responsible Care and CSR initiatives, and weare now intensifying our approaches to sustainability initiatives as a member of theSumitomo Chemical Group. Last fiscal year, we launched a project team to promotesustainability, shared material issues for sustainable value creation with the Sumitomo
Chemical Group, and established Koei Chemical’s KPIs. In FY2022, we have establisheda Sustainability Committee as an advisory committee to the Board of Directors, and on
the executive side, we have established a sustainability promotion council within the
Executive Council. Through these bodies, we will work to strengthen our concretemeasures based on reports of results, with the aim of accelerating our approach tosustainability. Within those approaches, regarding carbon net zero, we will continue
our efforts for improvement in energy efficiency by 1% per annum. The energy-saving,high-efficiency gas turbine cogeneration facility, a collaboration with Sumitomo
Chemical’s Chiba Works, will start operations in the fall of FY2023, but at present,
there is still a considerable gap from our target of a 50% reduction by 2030. As weproceed, we will identify the order of priority of measures to bridge that gap, including
procurement of renewable-derived fuels and materials and the purchase of emission
rights. We are also working on the development of technologies and products thatwill help to mitigate environmental impact, such as energy-saving catalysts and ionicliquids capable of dissolving cellulose at room temperature. Also, as a diversity
initiative, we established the Salad Bowl Farm in May, 2022 and are promoting theemployment of persons with disabilities.

Material issues to be addressed as management priorities and Koei Chemical’s KPIs
all employees and managing and disclosing the statusof approaches to those KPIs, we will contribute to therealization of a sustainable society. We will also promotedialogue with internal and external stakeholders andfurther enhance our activities to promote sustainability.

Material issues

Material issues for future
value creation

KPI

Contribute to the environment
Climate change mitigation and• CO2 emissions (Scope 1 + 2) (Target:50% reduction
compared with 2013)
adaptation
Contribute to recycling resources • Improvement in energy efficiency etc.
Sustainable use of natural capital

•
•
•
•

• Sales of raw materials and intermediates for crop protection
products

Contribute to healthcare• Sales of raw materials and intermediates for pharmaceuticals

Contribute to ICT• Sales of electronic related materials

Advance innovation• New product sales ratio• Cumulative savings from cost rationalization

Bolster competitivenessleveraging DX• Digital literacy assessment

Human resources: DE&I*,
growth & development, health• Percentage of female new graduate hires (Target: 20% or
more)• Employment rate of persons with disabilities (Target: 2.5%
or more)Information

Contribute to the food supply
Advance sustainable agriculture

Foundation for Value Creation

Material issues for social
value creation

Growth Strategy

We Share material issues for sustainable value creation
with Sumitomo Chemical Group, and has established the
key performance indicators (KPIs) of our own, shown in
the table below to address each of those material issues.
By raising awareness of sustainability promotion among

Foundation for business continuation• Occupational safety and health, and operational safety and disaster prevention• Respect for human rights• Cybersecurity• Compliance• Product safety and quality assurance• Anti-corruption*Diversity, Equity & Inclusion

Koei Chemical Report 2022

｜ 16

│ Growth Strategy — Sustainability Strategy │Contribute to
the environment
KPI
CO2 emissions (Scope 1 + 2)
[Target:50% reduction
compared with 2013]
FY2021 result:

41% reduction

Improvement in energy
efficiency etc.
FY2021 result:

0.1% reduction

In order to prevent global warming, the world needs to reduce the emission of
CO2 and other greenhouse gases. Through our efforts to date to promote energy
conservation through the modification of production processes and the collection
and utilization of exhaust heat, and centralize our bases and shift to high valueadded products through a review of the business portfolio, as of FY2021, we hadachieved a 41% reduction in CO2 emissions compared with 2013. However, while on
the one hand, CO2 emissions declined significantly due to the decline in production
volumes resulting partly from the extraordinary circumstance of shut-down
maintenance being performed twice in FY2021, the rate of improvement in energy
efficiency etc. decrease. Going forward, we will pursue energy-saving measures as
collaborative projects with Sumitomo Chemical in our aim for further improvements.
CO2 emissions

Rate of Improvement in energy efficiency etc. (%)

CO² emissions ( t )CO² emissions reduction from 2013 (%)

49,300
27

50

1.4

41
44,20034

1.0

39,60033,6000.5
0.1

FY2019TOPICSFY2020

FY2021

FY2030target

FY2019FY2020

FY2021

FY2024targetLaunch of joint research of catalyst for amine production with Osaka
University Graduate School

Koei produces amine compounds that are essential
to CO2 absorbents. Amine is produced under harshconditions of high temperature and pressure.
Through joint research with Associate Professor
Takato Mitsudome of the Osaka University
Graduate School of Engineering Science, we aim
to establish new process under lower temperatureand pressure, which will enable us to reducehydrogen and energy use and establish green andsustainable amine production technology.

Contribute to thefood supply
KPI
Sales of raw materials andintermediates for crop
protection products
FY2021 result:

2.0 billion yen

17 ｜ Koei Chemical Report 2022

Our basic products, including aminesand pyridines, are used as raw materials
and intermediates for crop protection
products. We deliver these products to
manufacturers in Japan and overseas.
In FY2021, they accounted for 12%
of total net sales, and sales of theseproducts increased by around 10% year
on year. However, sales are expected tolevel out for the immediate future due tointensifying competition.
Going forward, we will strengthen
our competitiveness through streamliningof existing products and productivity
improvements and strive to expand
demand, while at the same time further
promoting new product development inan effort to improve sales performance.

Sales of raw materials and intermediates
for crop protection products (100M yen)
24
19

FY2019FY202020

20FY2021

FY2024targetContribute tohealthcare
Sales of raw materials andintermediates for pharmaceuticals
FY2021 result:

4.4 billion yen

KPI
Sales of electronic relatedmaterials
FY2021 result:

KPI
New product sales ratio
FY2021 result:

7.5%

Cumulative savings fromcost rationalization
FY2021 result:

FY2019FY2020

FY2021

FY2024target(100M yen)

69

50

48

FY2019FY202052

FY2021

FY2024targetFoundation for Value Creation

Advance innovation

Sales of electronic related materials

40

44

Growth Strategy

5.2 billion yen

The electronic related materials
category comprises semiconductorrelated products, ionic liquid products,
and optical materials-related products.
Despite major fluctuations in demand,
this category is expected to grow steadilyon the whole.
In FY2021, these products accounted
for 31% of total net sales, with opticalmaterials-related products contributing toa 9% increase in sales year on year. From
FY2022, we are aiming for the further
expansion of optical materials-related
products through the recovery of demand
for semiconductor-related products andthe strengthening of collaboration with
the Sumitomo Chemical Group, andwe expect to see major growth in thiscategory toward FY2024.

52
44

Message from the President

Contribute to ICT

Sales of raw materials and intermediates
for pharmaceuticals (100M yen)
Introduction

KPI

For many years, we have delivered
antituberculosis drug intermediates andother pharmaceutical intermediates,
and core products, including aminesand pyridines, to pharmaceuticalmanufacturers in Japan and overseas.
In FY2021, these products accounted
for 26% of total net sales, with only amarginal increase in sales of 0.4% year
on year. As we anticipate large orders
for pharmaceutical intermediatesfrom FY2022, we expect to see major
growth toward FY2024.

The trends in the new product sales ratio and the cumulative savings from cost
rationalization are shown in the graphs below. Cumulative savings from cost
rationalization is growing steadily. The new product sales ratio has fallen slightly,
but toward FY2024, we will aim to expand sales of organometallic catalysts,
pharmaceutical intermediates, and optical materials-related products in particular.
Cumulative savings from cost rationalization (100M yen)

New product sales ratio (%)
Net sales of new products (100M yen)
New product sales ratio (%)

12
Information

0.6 billion yen

20.0

43
8.5

6
7.8

7.5

16

14

13

FY2019FY2020

FY2021

3

FY2024target

FY20194

FY2020

FY2021

FY2024target*Definition of new products: Products marketed within past five years

Koei Chemical Report 2022

｜ 18

│ Growth Strategy — Sustainability Strategy │Bolster competitivenessleveraging DX
KPI
Digital literacy assessment
FY2021 result:

1.5

To measure the level of the Company’s digital literacy, Koei Chemical uses a proprietary
5-point scale to assess a total of 12 items, divided into (1) six items concerning Ideal
approaches to business management and systems for promoting DX, and (2) six items
concerning Development of IT systems as a foundation for achieving DX.
Based on this assessment, our digital literacy score in FY2021 was a low 1.5, but we are
steadily achieving results and will aim for sustained improvements.
FY2021 digital literacy assessment score ∙∙∙ 1.5

Digital literacy assessment
Ideal approaches to business management
and systems for promoting DX
No.

Evaluation items

Development of IT systems as a foundation
for achieving DX

Selfassessment

No.

Selfassessment

Evaluation items

1

Strategies and visions*

1.5

7

Governance/systems

2

2

Commitment by business management

28

Secure HR recruitment23

Mindset/corporate culture

09

Ownership of the business operation department

2

4

Promotion/support systems

3

10

Analysis and assessment of IT assets

2

5

HR Development/secure HR recruitment

111Categorization of IT assets and planning thereof**

1

6

Reflection of outcomes in business2

12

Ability to follow up on changes

1*No. 1 is further divided into two sub-items and **No. 11 into four sub-items for self-assessment.

Human resources:
diversity, equity &inclusion, growth &development, health
KPI
Percentage of female newgraduate hires(Target: 20% or more)
FY2022 result:

14.3%

Employment rate for
persons with disabilities(Target: 2.5% or more)
FY2022 result:

3.1%

Our target for the percentage of female new graduate hires is 20% or more, but in themedium to long term, we aim to raise the employee retention rate and increase thepercentage of female employees across the entire Company. We achieved this target
in FY2020, but the percentage was below the target in FY2021 and FY2022. We willcontinue in our aim to build a company and systems that will appeal to women.
Further, with the employment of persons with disabilities due to the establishmentof the Salad Bowl Farm, we have achieved our target for the employment rate ofpersons with disabilities from FY2022. We will continue our efforts to maintain andimprove this employment rate.
(1) Percentage of female new graduate hires[Target: 20% or more]
Percentage of female employees

Male(2) Employment rate of persons with disabilities[Target: 2.5% or more](as of June 1 each year)

Female

25.0%

3.1%
12.5%

16

14.3%

2.2%

2.3%

16
2

4
12

14

7
1

FY2021

FY2022

6
FY2020

TOPICS

Establishment of the Salad Bowl Farm

We established the Salad Bowl Farm as an initiative
to further promote employment of local persons
with disabilities. We are working to create a working
environment where it is easy for each individual toparticipate actively, such as setting work content
and roles to match the attributes of the individual
employees’ disabilities and establishing systems
for detailed follow-up. We will continue in our
aim to realize a sustainable society through theemployment of diverse human resources.

19 ｜ Koei Chemical Report 2022

FY2020

FY2021

FY2022

│ Growth Strategy — Milestones Toward Carbon Net Zero │Current state of greenhouse gas emissions reduction and recognized issues
processes and the collection and utilization of exhaust
heat, and the centralization of business bases and theshift to high-value-added products through a review ofthe business portfolio, as of FY2020, we had achieved a
34% reduction in CO2 emissions compared with FY2013
level. However, due to an increase in production volumes
with the commencement of operations at the new plant
in FY2022, CO2 emissions are expected to increase
temporarily.

Introduction

For the prevention of global warming, Koei Chemical, as amember of the Sumitomo Chemical Group, the world’s first
general chemical company to obtain certification under the
SBT Initiative, has designated emissions of CO2 and othergreenhouse gases (Scope 1+2) as a KPI and, with a targetof a 50% reduction from FY2013 level by FY2030, aims toachieve carbon net zero by 2050.
Through our efforts to date in the promotion of energy
conservation through the modification of production

Future approaches to carbon net zero
installed at Sumitomo Chemical’s own Chiba Works nextdoor to ours (scheduled for completion in autumn 2023).
In our approach to carbon net zero, we have positioned
contribution to resources recycling by leveraging the
research and technological development capabilities
we have cultivated to date as a material issue. Our mainplanned initiatives, including the development of new
ionic liquids that can dissolve cellulose with low energy
consumption, are listed below.

Message from the President

It is difficult to achieve such a challenging target by simply
continuing the current efforts, thereby indicating the needto introduce new solutions and other active measures. One
example of such measures is the pursuit of a collaborative
project with Sumitomo Chemical, our parent company,in which our Chiba Plant will shut down the existing
cogeneration facilities and make up for the resulting
shortfall in electricity and steam with supply from a highly
efficient gas turbine power generation facility to be newly
Main planned initiatives

Growth Strategy• Development of new ionic liquids that can dissolve cellulose under more moderate conditions than previously• Development of metallic nanoparticle catalysts for the realization of highly safe production processes for aminecompounds, which are indispensable as CO2 absorbents, under lower temperature and pressure conditions thanpreviously (joint research with Osaka University Graduate School)• Production of polyether diamine using polyols derived from CO2 solidified biomass
Greenhouse Gas Emissions (Results and Plans) (t)

wS

34

%
reduction

BT:

50 %

red

Foundation for Value Creation

Ne

67,200

uct

ion

by
•Closure of
FY2
48,700
Osaka Plant
030•Shutdown of 44,200 9% increase
Chiba AP Plant•New CM IV plant•Energy-saving,fully operational
etc.

25% reduction

33,600

Energy-saving andthorough use of BAT(BAT: Best Available Technologies)

FY2020

FY2022

Information

FY2013Development andimplementation of
innovative technologies

Net zero

FY2030FY2050Koei Chemical Report 2022

｜ 20

│ Growth Strategy — DX Strategy │DX objectives and vision
Having decided on the improvement of productivity
and strengthening of competitiveness as our digitaltransformation (DX) objectives, we have formed
a company-wide taskforce (DX Strategy Team) as
a step toward achieving those objectives. We havealso established the vision for each field, namely
the production plants (PLANT), R&D, SCM, andback-office divisions (OFFICE), that we will aim
toward in our DX strategy in the Corporate Business
Plan. Through initiatives based on this DX strategy,
we will strive to optimize and speed up our entire
supply chain and engineering chain, while also
accelerating innovation, in our aim to achieve the
Corporate Business Plan.

Faster and optimized operationof the overall supply chain activities.

PLANT

Improved production oppor tunities withmaximized production capacity.

R&D

Faster and more advanced R&D through datadriven research.

SCM

Faster and optimized operation of the overall
supply chain activities.

OFFICE

More employee-friendly operations with digitaltechnology.

Improve productivity and competitiveness

R&D

Product
planning

Product
designyields.

PLANT

Engineering chain•Improve development precision and speed.
•Improve production opportunities andVisionPrototyping•Accommodate wider product variety
and prompt product deliveries.
•Cost reduction through rationalization.

SCM
OFFICE

MA/SFA/CRM

Processplanning
Manufacturing
facilities
construction

Supply chain

Sales
forecast

Supply/demandmanagement

Raw materials
procurement

Manufacturing/inspection

Inventory
control

Sales

Distribution

OFFICE

Introduced e-learning program “Aidemy Business” as part ofpromotion of Data scientists/engineers’ skill development.
As an initiative to develop personnel who understand the latest digital technologies andapproaches and who will promote Koei’s DX forcefully, we have introduced “Aidemy Business,”an e-learning service delivered by Aidemy Inc. In the belief that improving the digital literacy ofthe management team, and not just that of the DX Strategy Team, is vital for the promotion ofDX, all executive officers of Koei are taking this e-learning course.

21 ｜ Koei Chemical Report 2022

│ Foundation for Value Creation — Governance │In order to respond to the expectations of stakeholders, we strive to establish and operate aneffective corporate governance system and continuously strengthen and improve the system.

2015
2016

2019

Nomination Committee/Compensation Committee
established.
Introduced an effectiveness evaluation of the Boardof Directors.
Transformed the structure into a company with an
Audit and Supervisory Committee.
First female director appointed.
Established an Outside Directors Meeting system.

Introduction

Initiatives to strengthen the corporate governance system
Number of Directors/Audit and Supervisory
Committee Members is increased from three to four.
Introduced an Executive Officer structure, making 1/3
of Board consisting of the Independent and Outside
Directors.
Established the Sustainability Committee as anadvisory body to the Board of Directors

2020
2021
2022

Message from the President

Basic policy on corporate governance
Board of Directors. Our businesses are being operated
under the supervision of these organizations. We alsoendeavor to enhance corporate value through efficientmanagement in pursuit of the best possible corporate
governance, and continue to engage in measures tostrengthen and enhance corporate governance in line withthe following policies.

In the expectation of fair corporate activities, Koei positions
compliance as a critical core of management. In terms ofour business management system, we have established theBoard of Directors and the Audit & Supervisory Committee,
as well as the Management Committee, Internal Control
Committee, and other necessary committees, which areintended to supplement and reinforce the function of the• In addition to respecting the rights of shareholders, we will strive to establish an environment that will realize the smooth exercise
by shareholders of those rights and to ensure substantive equality of shareholders.
• We recognize that working together with our many different stakeholders, including employees, customers, business partners,•

Growth Strategy•

creditors, and local communities, is essential to the sustainable growth of the company, and, in addition to actively fulfilling ourcorporate social responsibilities, we will strive to foster a corporate culture that will be trusted by society.
As part of our establishment of platforms for constructive dialogue with our stakeholders, we will indicate highly reliable and appropriate
management policies and business strategies that are based on changing social and economic circumstances. The Board of Directors will
also execute its roles and missions appropriately, including conducting highly effective supervision of the execution of operations.
We will strive for constructive dialogue with stakeholders, with whom we share a recognition of the company’s sustainable growth
and the mid-to-long-term enhancement of corporate value.

Corporate governance system

Foundation for Value Creation

outside directors, the supervisory function of the Board of
Directors has been further strengthened, leading to thefurther enhancement of our corporate governance system.
In addition, in order to further strengthen the
supervisory function, four outside directors are registeredas Independent Officers with the Tokyo Stock Exchange.

In accordance with the resolution passed at the 155th
Ordinary General Meeting of Shareholders held on June24, 2016, Koei Chemical transitioned from a company
with a board of corporate auditors to a company with
an audit & supervisory committee. By establishing the
Audit & Supervisory Committee, the majority of which areoutside directors, and through the appointment of several
Corporate governance system (as of July 1, 2022)

Shareholders’ Meeting
Appointment and dismissal
Cooperation

Accounting
Auditors

Audit andSupervisory Committee
Full-time Audit and Supervisory
Committee member (1)Outside Audit and Supervisory
Committee members (3)Accounting audit

Election and dismissal

Appointment and dismissal

Auditing and
Board of Directors
supervision
Directors who are Audit andSupervisory Committee members
Internal Directors (5)Outside Directors (4)Cooperation

Nomination Committee
Compensation Committee

Reporting/recommendations(Advisory to the Board of Directors)

Reporting/recommendations(Advisory to the Board of Directors)

Reporting/recommendations(Advisory to the Board of Directors)

Outside Directors Meeting
Sustainability Committee

Appointment/dismissal and supervision

Information<Executive structure>
Executive Officers (8)Executive Council

Internal Control &Audit Office•

HR Development Council•

Sustainability Promotion Council•

DX Strategy Council

Departments
Internal
auditing

Chiba Works, R&D Division, Sales and Marketing
Division and other supporting functional teams<Committees>
Internal Control Committee
Risk Management Subcommittee

Activity
promotion,awarenessraising,management

Compliance Subcommittee
Human Rights Promotion Subcommittee
Responsible Care Committee

Koei Chemical Report 2022

｜ 22

│ Foundation for Value Creation — Governance │Strengthening of corporate governance system
On April 1, 2022, Koei launched its new Corporate Business Plan
FY2022–FY2024, “KX2.0: Striving for transformation utilizing
knowledge and experience of over 100 years.” In our efforts torealize our corporate philosophy within the initiatives designed
to achieve that plan, we have undertaken a further review of ourcorporate governance system, which included making changes

to the composition of the Board of Directors, establishing a new
Sustainability Committee, and enhancing the Internal Control
Committee. We will continue to examine the status of ourcorporate governance as required, based on social trends andother developments, and implement and improve our policies at
the appropriate time and in an appropriate manner.

[1] Composition of Board of Directors
With the objective of building a corporate governancesystem that strengthens the supervisory function of
the Board of Directors and heightens its independence
from controlling shareholders, four Outside Directors
were elected at the 161st Ordinary General Meeting of
Shareholders, increasing the ratio of Independent Outside
Directors. With this move, the Board of Directors now
comprises five Internal Directors and four Independent
Outside Directors (until last fiscal year, there were

six Internal Directors and three Independent Outside
Directors).
The Board of Directors’ composition maintains a balanceof Directors who possess the knowledge, experience, andskills necessary for the realization of the new Corporate
Business Plan FY2022–FY2024, “KX2.0: Striving fortransformation utilizing knowledge and experience of over
100 years,” and ensures diversity, including gender andprofessional background.

Composition of Board of Directors

FemaleDirectors

Ratio of Independent
Outside Directors(Internal) 5: (Independent Outside) 4

Internal
Directors

OutsideDirectors

Total Directors:

9

Internal Directors:

5

Independent
Outside Directors:

4

Ratio offemale Directors(Male) 7: (Female) 2

44%

22%
Male
Directors[ 2 ] Establishment of new committee: Sustainability Committee
In recent years, sustainability has been increasingly
recognized as a key management issue for theenhancement of corporate value. Koei has also positioned
the pursuit of sustainability as a factor in the strengtheningof its management foundations. For the strategic andongoing promotion of responses to sustainability issues,
we have established a Sustainability Committee as anadvisory committee to the Board of Directors. We havealso established a Sustainability Promotion Council inside
the Executive Council. This Council will consider concrete
policies and measures for sustainability within the executive
structure.
The Sustainability Committee will debate, deliberate,and supervise while incorporating various stakeholders’viewpoints. In this way, we will raise the effectiveness ofour sustainability promotion activities.

[ 3 ] Enhancement of Internal Control Committee
As a structure to ensure the properness of business
operations as set forth in the Companies Act, Koei hasestablished a Basic Policy on Internal Control Systems.
The Internal Control Committee examines the Company’svarious measures regarding internal control under this Basic
Policy and the various measures concerning the internal
control reporting system for financial reporting, and reports
its opinions of those examinations to the Board of Directors.
This fiscal year, we have enhanced the Internal Control
Committee as part of our initiatives to strengthen the

23 ｜ Koei Chemical Report 2022

corporate governance system. We have established a Risk
Management Subcommittee, Compliance Subcommittee,and Human Rights Promotion Subcommittee under theInternal Control Committee to implement and promote thevarious measures under the internal control system. Thishas created a structure under which the Internal Control
Committee will implement and promote measures regarding
internal control, including matters on risk management,compliance, and respects for human rights.

Complianceassignees, contract employees, temporary workers, and allother persons engaged in Koei’s business activities under
Koei’s control and supervision for the observation of laws
and ordinances, company
regulations, and social ethics.
It also indicates the standards
that officers and personnel
should maintain and unwritten
ethical standards in theform of conduct guidelines
along 26 key themes. The
Compliance Manual is updated
when required to ensure thatit continues to respond tochanges in social requirements,
laws, and regulations.

Introduction
Message from the President

In our corporate philosophy, not only do we aim to growour business and contribute to the development of society
by providing valuable products and developing innovativetechnology, but we also declare that we will earn thetrust of society and pursue our business activities throughthe actions of all officers and personnel, placing prime
importance on credibility and integrity. The observationof laws, regulations and social ethics (compliance) is aprerequisite for achieving these aims. In that respect,
Koei positions compliance as the most critical core ofmanagement.
To achieve the thorough implementation of complianceby all officers and personnel, we have established theKoei Chemical Charter for Business Conduct (Compliance
Manual). This Compliance Manual sets forth the various
rules to be observed by officers, employees, temporary

Speak-up reporting system
We have established a whistle-blowing hotline that allows
officers and personnel to report compliance violations or therisk thereof if they detect the occurrence inside Koei Chemicalor an affiliated company (speak-up reporting system). We
use sufficient caution with respect to the privacy of whistleblowers and consulters, and have arrangements in place toensure that they will never be treated disadvantageously on
the grounds of having made a report/consultation under thissystem. We have also set up an external whistle-blowing
hotline (external attorney) in addition to the internal hotline
to make the speak-up reporting system easier to use. We
also educate personnel about the system.

Growth Strategy

Compliance education
posters are displayed, and a“Compliance News” column
is published in the Company’s
newsletter. This column uses
illustrations and text to provide
easy-to-understand explanations
and commentary on the details
and preventive measures ofcompliance risks that arecommon to the whole Company,
including topical issues andissues that could arise in familiar
surroundings.

Foundation for Value Creation

We are placing efforts into compliance education with theobjective of fostering a consciousness of compliance among
all officers and personnel. In addition to compliance training
held every year for all officers and personnel, we have alsoestablished Compliance Promotion Month, during which
everyone participates in the identification of compliancerisks that are peculiar to each division and proposes
countermeasures to those risks. Compliance has also been
included in our new employee induction training and gradebased training, as part of our meticulous efforts to educate
our employees.
In addition, to raise awareness of compliance-related issues
among all officers and personnel, compliance awarenessMessage from an Outside Director

Outside Director (Audit &Supervisory Committee Member)

Koei Chemical Report 2022

Information

Shingo Yoro

The Independent Outside Directors (Audit & Supervisory Committee Members) have a broad
range of responsibilities. In addition to being members of the Audit & Supervisory Committee,
which is primarily responsible for auditing operations, we participate in decision-making in
the Board of Directors, and we also have status as independent directors for the protectionof general shareholders. Since my appointment to this role two years ago, the environment
concerning audits and governance has changed markedly, including the introduction of
Key Audit Matters (KAM) and the revision of the Corporate Governance Code. Remaining
cognizant of the fact that Koei Chemical is a listed subsidiary, based on my experience as alegal professional, I will devote my efforts not only to the protection of minority shareholders
but also to ensuring that diverse stakeholders’ opinions are reflected in corporate governance.

｜ 24│ Foundation for Value Creation — Responsible Care │The global chemical industry is working voluntarily to protect environment, safety and health through every processfrom the development of chemical substances, their manufacture, distribution and use to final consumption anddisposal, as well as engaging in communication with the public by openly disclosing performance. These initiatives
are known as “Responsible Care.”
As a member company of the Japan Chemical Industry Association (JCIA) working for responsible care, we haveformulated the Policy on Responsible Care Activities (Safety, Health, Environment and Quality). We aim to further
promote safety, health, environment, and quality throughout the life cycle of our products under this policy.

Policy on Responsible Care Activities (Safety, Health, Environment and Quality) (Revised on April 1st, 2022)
Koei Chemical’s core philosophy is as follows;“We aggressively act to grow our business bymobilizing all the available intelligence and energy withprime importance on credibility and integrity.”“We shall contribute to the development of society
through providing valuable products, solutions andinnovative technology.”

In accordance with this core philosophy, we will
work on the following matters regarding safety, health,environment and quality as our top priorities in order
to contribute to the sustainable development of society
and our own growth.

1

We will maintain safe and stable operations by realizing zero-accident, zero-injury performance and “Making safety our first priority.”2

We will ensure the safety of our employees, neighboring communities, and other stakeholders through risk-based continual improvement of our performance inoccupational safety and health, industrial safety and disaster prevention, and other related areas, as well as the security of our facilities, processes and technologies.

3

We will work to ensure environmental and human health and safety throughout the life cycle of our products by promoting continual improvement inchemicals safety and product stewardship across the supply chain, and enhancing our chemicals management system.

4

We will work to protect the environment through continual improvement of our environmental performance throughout the life cycle of our products,from development to disposal, and address climate change and related issues.

5

We will supply high-quality products and services that satisfy customers’ needs and ensure safety in their use.

6

We will not only comply with all domestic and international laws, regulations, and ordinances, but also work to use best practices through our voluntary initiatives.

7

We will disclose information and engage in dialogue with society to ensure that we meet society’s expectations, respond to its interests, and remain accountable to the same.

8

We will contribute to sustainable development of society by improving our performance, expanding business opportunities, as well as developing andproviding innovative technologies and other solutions to address social challenges.

Efforts for responsible care activities
held twice a year. The Committee reviews the resultsof activities performed during the previous fiscal year
and approves plans to be implemented for the current
fiscal year to ensure continuous improvement of the
management system. In addition, we perform internal audits
on a regular and as-needed basis to check the effectivenessof the activities.
We have acquired ISO certification, which is theinternational standard relating to environmental and quality
management systems, as one of the tools to promote
Responsible Care activities. We also focus on the overall
improvement of system performance.

We declared the implementation of Responsible Care in
1995. Having recognized this policy, officers and employees
are making continuous efforts to improve the management
system in compliance with laws and regulations. In addition,
an officer who is in charge of safety, the environment, andproduct quality oversees all the duties regarding safety
and health, environmental protection, security and disasterprevention, quality assurance, and chemical safety.
We have established the Responsible Care Committee,
which is chaired by the President, as the supreme decisionmaking organization that promotes Responsible Care
activities. The Responsible Care Committee meetings are
Cross correlation chart of major processes

Continuous improvement of management system
Zero-accident and zero-injury operation/product safety/customer satisfaction/
reduction of environmental impact/expansion of business and profit

Requirements ofstakeholders

Product realization

Manager’s responsibility

Customerrequirements
and information

Products

Sales and marketing
Design development
Production plan
Procurement of
raw materials
Manufacturing
Outsourcing
Quality management
Storage and shipment

Performance
Provision of
resources
Operational
management

Satisfaction

Feasibility and profitability
EnergyEnvironmental impact
Provision of personnel
Provision of facilities

Target management
Management of management system
Management of quality assurance

Customer satisfaction

25 ｜ Koei Chemical Report 2022

Establishment ofpolicies and target

Measurement, analysis,
improvement

Operational
side
Performance

Complaints

Operational managementof resources

Internal audit

Input

Manager’s responsibility

Requirements ofcustomers

Safety, security and disaster prevention

Message from the President

Safety workshop

of risk detection, the promotion of the pointing and coding
method and other necessary measures are conducted bysafety and environment promotion members, which are
representatives appointed in each workplace.
Moreover, we have established the Safety andEnvironment Promotion Task Force for plant reform activities.
These activities are being strengthened by positioning theTask Force as an important pillar of reform activities.
Both the President and Plant Directors, which are the top
members of the plant, inspect the relevant workplace andare actively involved in various initiatives such as ensuring
Japanese 5S methodology, raising safety awareness, andeliminating safety issues. In this manner, ensuring safety istreated first and foremost.

Introduction

Based on the basic principle of “making safety our firstpriority,” we strive to ensure worker safety and health withthe aim of making safety and stable operation our strength.
More specifically, we perform activities to periodically
discuss and consider issues regarding safety and health, anddetermine measures mainly through the Safety and HealthCommittee and the safety and environment promotion
members’ meeting.
In addition, we perform concerted safety activities byorganizing various campaigns with the aim of eliminating
both minor and major disasters. During the campaign
period, the identification of dangerous sites and theimprovement thereof, the promotion of Hiyari-Hatto (nearaccident situations) prevention activities, the strengthening

Disaster training

Product label

hazards in the workplace, and reduce or remove them. We
identify dangers and hazards of the substances that we handle
at the phase of research and experimentation with reference
to literature study and tests. For substances produced officiallyin a plant, various assessments through the evaluation of themagnitude of risks of chemicals and facilities are required.
The data is examined by not only the department in chargeof safety, but also in cooperation with the laboratory and theplant divisions.

Foundation for Value Creation

We have prepared GHS-compliant safety data sheets (SDS) andproduct labels for all products to display and provide users withnecessary information on dangers and hazards. Providing SDS
and labels is a statutory obligation in Japan and overseas, withwhich we appropriately comply. We also ask logistics traders
who transport our products to carry a card that contains
information on emergency handling and contact (yellow card).
Chemicals need to be managed in accordance with risks.
Risk assessment is a method to identify potential dangers and

Growth Strategy

Chemicals safety

Yellow card

Quality assurance
When a quality-related complaint, problem or issue occurs, thedepartment in charge and the Quality Assurance Department willfind causes out through various way, for example, “naze-naze”
analysis (5 Why Analysis), take recurrence prevention measures,and roll them out to eliminate complaints of the quality-related
information. Information on those actions is shared within the
Company through the Quality Maintenance Task Force, which isone of our plant reform activities, thereby improving our quality
assurance system.

Information

We have built our quality assurance system in accordance withour basic policy of “supplying high-quality products and services
that satisfy customers’ needs and ensure safety in their use.” Inorder to satisfy our customers, we consider it important to deliverproducts that meet customer demands with quality that provides
customer satisfaction in a timely manner. To this end, quality
assurance activities are promoted at each stage through theconcerted efforts of divisions including sales, design/development,purchasing, production, quality assurance and logistics.

Please see pages 29 to 32 for detailed data on responsible care.
Koei Chemical Report 2022

｜ 26

│ Foundation for Value Creation — Respect for Human Rights │Respect for Human Rights
Koei Chemical has put in place this Human Rights Policy (“Policy”) to demonstrate its commitment tointernational standards on human rights. All officers and employees (“Personnel”) of Koei Chemical will
uphold this Policy.

Our Position on Human Rights(1) Compliance with Standards, Laws and Regulations
We support and respect international standards onhuman rights, such as the Universal Declaration of
Human Rights and International Labor Organization(ILO) Declaration on Fundamental Principles and Rights
at Work, and promote respect for human rights.
We comply with applicable laws and regulations incountries and regions where we operate, and where
local laws and regulations conflict with international
standards, we will seek ways to honor the principles ofinternationally recognized human rights.
(2) Respect for Human Rights in Our Business Activities
We do not discriminate against individuals based on
employment status, age, sex, ethnic or social origin,ancestry, nationality, disability, religion, beliefs, marital
status, or any other status. We do not tolerate any
form of harassment, including sexual harassment orworkplace bullying. We also respect fundamental laborrights including freedom of association and the right tocollective bargaining, and prohibit forced labor or childlabor.
We are committed to respecting human rights in ourbusiness activities and also strive to avoid contributing
to infringement of human rights. In order to preventand mitigate human rights risks related to our businessactivities, we will take necessary measures, including
ensuring compliance with the Compliance Manual(the Koei Chemical Code of Business Conduct) andother relevant policies and guidelines. We are also
committed to understanding our impact on local
communities and aim for harmonious coexistence withthese communities. We expect our business partners,
including our suppliers, and other relevant stakeholders
to act in line with the principles in this Policy, and wewill seek ways to work with them to promote respectfor human rights.

Our Approach to Human Rights Issues(1) Providing Education and Raising AwarenessWe will provide appropriate education and training
to our Personnel so that this Policy is understood andeffectively implemented.
(2) Human Rights Due Diligence
We will identify adverse human rights impacts, andseek to prevent or mitigate such impacts though ourhuman rights due diligence framework.
(3) Responding to Identified Human Rights Impacts
We will engage with relevant stakeholders in orderto address actual or potential adverse human rights
impacts.
(4) Remedy
Where we identify that we have caused or contributed
to adverse human rights impacts, we will endeavor
to remediate such impacts through appropriate
processes.

(5) Grievance Mechanisms
We have grievance mechanisms in place in the formof the Speak-Up Reporting System (whistle-blowing
channels) in order to address concerns about activities
that may adversely impact human rights or any otherconcerns raised about our business activities. Thesechannels are available for anyone having involvement
in Koei Chemical’s business activities, including theirbusiness partners as well as Koei Chemical Personnel
and their families. We will continuously seek tooptimize our grievance mechanisms.
(6) Disclosure
We will report on our efforts to respect human rights
through our website, CSR Report, and other relevant
channels.

Initiatives for human rights due diligence and high-risk raw material procurement
We conduct business activities based on Sumitomo
Chemical Group Human Rights Policy and Policy for
Responsible Procurement of Minerals/Raw Materials. We
define those raw materials that involve a high risk of having
a negative impact on human rights in the supply chain(including but not limited to Tantalum, Tin, Gold, Tungsten,
Cobalt, Mica, Graphite, Pulps etc.)

27 ｜ Koei Chemical Report 2022

When making purchases, we strive to identify items
that contain high-risk raw materials. We have conducted
human rights due diligence of suppliers of such items andconfirmed the absence of any issues. We will continue topromote these initiatives in accordance with Sumitomo
Chemical Group’s policies.

│ Foundation for Value Creation — Investment in Human Resources │Investment in Human Resources

Preparation of new company domitory for single employees•

Health promotion activities

Training course title
Total participants
TargetBasic technical training for new17
New employee operators
employees
Safety simulation course
3
Beginner operators
Chemical safety simulation training
47
Beginner to mid-level operators
Mid-level technician training
6
Mid-level operators
Workplace leader training
6
Mid-level operators to team leaders
SS (Supervisor Skill) training
2
Team leaders
Team leaders to foremen/deputy
SV (Supervisor) training
1
managers
OM (operation manager) training
1
Foremen and Deputy Managers
courseBack office department
Back office leader training
11
management employees
Manufacturing section employees,
Safety simulation training room
131
Engineering Department,
researchers, etc.
Technical seminar
226
Beginner operators to team leaders
Autonomous maintenance20
Mid-level operators to team leaders
operators (correspondence course)Group training programs for business skills, mental health, health and hygiene, etc.
Training course title
Total participantsCompliance training
415
Compliance Promotion Month415
Subcontract Act training
61
E-learning for preventing collusion and bribery
103
Brother-sister system reflection training (for new employees)
16
Brother-sister system reflection training (for mentors)
13
Training for promoted employees (GIII level general personnel)
13
Training for promoted employees (GIV level general personnel)
7
Training for promoted employees (new managers)
6
Follow-up training for promoted employees (GIII level general
12
personnel)
Follow-up training for promoted employees (GIV level general
5
personnel)
Follow-up training for promoted employees (new managers)
6
Management training for managerial personnel (G1 and 2 level56
managers and employees in equivalent positions)Management training for managerial personnel (G3 level and39
above general managers and employees in equivalent positions)
Training for general managers on the formulation of the new40
Corporate Business Plan
Training for new graduates
16
Follow-up training for new graduates
16
Training for new experienced staff
5
Language training*1
28
Mental health training program (line-care)
181
Mental health training program (self-care)
404
Stress check results briefing (line managers)
49
Seminar for female employees on changes in bone health16
Food education training program (line managers)
46
Food education training program (general personnel)357
In-body measurements session
44
Support for personnel who wish to quit smoking
4Industrial health internship*2
7

Information

Due to the need to prevent the spread of COVID-19,
we were unable to carry out health promotion events in
FY2021 as planned. All health events, however, still took
place under necessary countermeasures, while we kept
a close eye on the status of infections. For example, we
carried out support for quitting smoking, as well as mental
health training programs for line-care and self-care, byincreasing the number of session slots to avoid making
crowds.
To continue to offer meetings with occupational healthnurse, online and telephone meetings were introduced
in addition to in-person meetings. New employees andemployees with findings in health checkups thus saw
occupational health nurse and also industrial physicians asnecessary.
We will continue to consider and implement measures
to maintain and promote health.

Technical education

Foundation for Value Creation

In order for each employee to improve their productivity
and performance level, we are promoting the support ofnational certifications.
We offer on-demand classes to support exam
preparation, as well as pay incentives according to the levelof qualifications.
Number of employees who used the bonus system in FY2021: 60

Results of group education and training for FY2021

Growth Strategy

Support for acquisition of national certifications

Results of education and training
Message from the President

Koei Chemical has decided to rent an apartment building
to offer new company domitory for single employees. This
makes two apartment buildings of company domitory
units available for single employees, including one building
already we have owned. All employees who wish to live
in company domitory will be able to do so regardless ofgender. The new company domitory units are scheduled to
be available from February 2024.
The Corporate Business Plan implemented from April
this year focuses on enhancement of human resources
development as one of its basic policies. By preparing newcompany domitory for single employees as part of relevant
initiatives, we hope to facilitate communication between
colleagues and foster a sense of unity, which creates apleasant working environment and by extension improves
employee engagement.

Introduction

Koei Chemical has been recruiting the human resources for further business expansion. We recruit not
only people with technology-related backgrounds to enhance the R&D system but also we are increasing
the number of sales division personnel, and employees who work for the new multi-purpose plant as well.
Furthermore, we are preparing new company domitory for single employees and carrying out a variety ofhealth promotion activities. Such initiatives aim to offer employees stable lives and create an environment
where everyone can work in good health and with enthusiasm.
We also support our employees develop and acquire skills. We support them by offering a range ofeducation and training programs. We will work on human resources development especially to develop
employees’ capabilities and skills, and to cultivate new employees’ fundamental skills.

*1 Participants took online English conversation classes*2 Accepted students from the Faculty of Nursing, Wayo Women’s University

Koei Chemical Report 2022

｜ 28

│ Information — Data on Responsible Care │Environmental accounting report
Environmental accounting (FY2021)
Environmental preservation cost
❶ Business area cost
(Breakdown) Environmental
measure cost
Global environment
preservation cost
Resource
circulation cost
❷ Upstream/downstream cost
❸ Administration activity cost
❹ R&D cost
❺ Social activity cost
❻ Environmental deterioration
cost
Total

Economic effect of environmental(Unit: Millions of yen)preservation measures(Unit: Millions of yen)

Category

Major items
Prevention of air pollution, water pollution,
land pollution, etc.
Prevention of global warming, energy saving,etc.
Resource saving, efficient water use,
rainwater use, disposal, reduction,
elimination, and recycling of industrial waste
Green purchasing, recycling of products,
etc., recycling of containers and packaging
materials, etc.
Environmental training, monitoring andmeasurement of environmental impacts,
ISO14001 maintenance and management
R&D for products that contribute toenvironmental preservation
Greening, beautification, levy on pollutionload, support of environmental activities
performed by local communities
Land pollution, restoration of the naturalenvironment to its original state

Investment

Cost

272

959

Details of effects

Amount137

567❶ Effects of recycling activities

44

228

❷ Effects of resource saving

255

163

❸ Effects of energy saving

28

91
0

0

0

112

0

89

0

3

0

0

272

1,163

Total

196

479

Note: Cost amounts are the sum of depreciation costs, repair costs, labor costs, material and service costs and businessconsignment expenses, etc.

Scope of calculations: Koei Chemical alone
Period covered: FY2021 (April 1, 2021 to March 31, 2022)
Preconditions of calculation: Calculations are based on the Ministry of the Environment’s Guidelines.
Costs are calculated based on actual results.
Economic benefits are only actual benefits. The deemed benefits are not included.

•••

GHG emissions
GHG emissions Scope 3

GHG emissions Scopes 1 and 2(Unit: ton-CO2e)(Unit: ton-CO2e)

Emissions

Emissions

FY2019FY2020

FY2021

Scope 1 (fuel and waste oil
combustion)

36,02532,64028,788

Scope 2 (Use of electricity and steam
supplied by other companies)

13,24911,593

10,794• For Scope 1, direct CO2 emissions associated with combustion of fuel, waste oil, etc. are

calculated.
• For Scope 2, indirect CO2 emissions associated with use of electricity and stream supplied byother companies are calculated.

FY2019FY2020

FY2021

1. Purchased products and services

59,142

44,29842,591

3. Fuel and energy-related activities
not included in Scope 1 or 2

8,326

7,490

6,939

4. Transportation and distribution(upstream)

2,942

2,100

2,478

5. Waste from business

1,236

1,829

1,229

• For Scope 3, indirect GHG emissions associated with supply chain corporate activities arecalculated.

• The above four categories are covered in the calculation.

Possession of equipment related to PCB and fluorocarbons

PCB-containing equipment pieces

Freezers that use fluorocarbons as
coolants*

FY2019FY2020

FY2021

Small-amount
PCB

0

0

0

Highconcentration
PCB

0

0

0

CFC

0

0

0

HCFC

1

1

1

HFC

2

2

2

*The numbers cover business-use freezers and air conditioning facilities incorporated in the production process.

29 ｜ Koei Chemical Report 2022

PRTR reports

Actual release amount and transferred amount for FY2021 (tons/year)

Trend of total release amount [t / year]
2.75

2.77

Total release amount
1.96(2.64)
Transferred amount*
72.4(81.6)

Figures in parentheses show
FY2020 results.

2019

2020

2021 Fiscal year

Message from the President

Release amount andtransferred amount

1.08

2018

Air release
1.96(2.64)
Water release
0.00(0.00)
Soil release
0.00(0.00)
Internal landfill amount0.00(0.00)

2.64
1.96

2017

Introduction(Pollutant Release and Transfer Register) is a system for
identifying, compiling and publicly disclosing information
on what amount of chemical substances specified bygovernment ordinance have been emitted into theenvironment or have been transferred off-site with waste.

The PRTR system is prescribed in Article 5 of the Act
on Confirmation, etc., of Release Amounts of SpecificChemical Substances in the Environment and Promotion of
Improvements to the Management Thereof (generally known
as the “PRTR Act”), which took effect in March 2000. PRTR

*The transferred amount is the volume entrusted to intermediate waste treatment service operators(little emission to public sewage system)

Air release of SOx, NOx, and dust
Water release of COD, nitrogen, and phosphorus

Trend of NOx emission [t / year]

Trend of SOx emission(t)Annualized emissions: 13 tons
(addition of agreed values)

Trend of dust emission (t)Annualized emissions: 127 tons
(addition of agreed values)

51.38

55.78
42.87

42.97
2.88

2017

0.03

0.23

0.04

0.00

2018

2019

2020

2021 Fiscal year

Trend of COD emission (t)

2017

2018

2019

2020

2021 Fiscal year

Trend of nitrogen emission (t)Annual limit: 55 tons
(addition of agreed values)

7.0

5.5

5.1

2017

2018

2019

2020

2021 Fiscal year

2017

6.4

2018

6.0

2019

4.18

2019

4.65

2020

3.97

2021 Fiscal year

Trend of phosphorus emission (t)Annualized emissions: 2.3 tons
(addition of agreed values)

Information

6.9

2018

Annualized emissions: 18 tons
(addition of agreed values)

5.5
8.3

2017

3.59

Foundation for Value Creation

52.77

0.57

Growth Strategy

The environmental impact on air and water areas is as follows.
For SOx, the volume detected through annual analysis is small and lower than the emission standards.
We have set agreed values which are stricter than the requirements under laws with local communities. Appropriate
control is performed based on the agreed values.

6.8

2020

4.8

0.67

0.63

2021 Fiscal year

2017

2018

0.70

0.64

0.55

2019

2020

2021 Fiscal year

Koei Chemical Report 2022

｜ 30

│ Information — Data on Responsible Care │Efforts to reduce industrial waste
generated decreased by 6% compared to the previous
fiscal year, and the recycle rate was 24%.
We will make continuous efforts to reduce
environmental impact through recycling, such as a methodof using incineration residues as cement materials.

Regarding waste generated through business activities, we
actively promote the “3Rs” (reduce, reuse and recycle) to
reduce the environmental impact.
The volume of waste discharged for FY2021 is shownin the following chart. The volume of industrial waste
Actual results for FY2021
Targets of initiatives

Actual results

Zero emissions

Through business activities:
Reduction of industrial
waste amount
Reduction of landfill
disposal amount••• Waste generated through business activities: 17,316 tons
(18,338 tons for the previous fiscal year, down by 6%)• Landfill disposal amount: 197 tons

Promotion of recycling
Increase of effective
usage rate

• Recycling amount: 4,218tons• Recycling rate: 24%(264 tons for the previous fiscal year, up by 25%)•

(4,497 tons for the previous fiscal year, recycling rate:25%)

年度別廃棄物量推移
Trendof industrial waste by fiscal year

Although the industrial waste amount is decreasing eachyear, the landfill disposal amount fluctuates with thechange of production items.
We will make continuous efforts to promote thereduction of environmental impact by cutting not only
the industrial waste amount but also the landfill disposal
amount.
We have disclosed information on the maintenance andmanagement of industrial waste facilities (incinerators) on
our website since 2011 in accordance with the Enforcement
Regulations of the Waste Management Law(URL: https://www.koeichem.com/en/company/rc.html).

Landfill disposal amount [thousand of t / year]
Industrial waste amount [thousand of t / year]

22.1

20.5
18.3
16.3

0.28

2017

0.26
0.19

0.20

2018

2019

2020

17.3

0.20

2021 Fiscal year

Hazardous* and non-hazardous waste (FY2021)(Unit: Thousand tons)

Industrial
waste
generated

Internally recycled

Internally reduced

Reused/Recycled

Thermalrecycled

Incinerated

Other

Industrial
Internally Externallywaste
landfilled reduced
taken out

Externally recycled
Reused/Recycled

Thermalrecycled

Externallylandfilled

Non-hazardous
waste

0.28

0

0

0.0

0

0.28

0

0.01

0.18

0.04

0.04

Hazardous waste

17.0

3.57

0

10.2

0

3.24

0

0.08

0.46

2.53

0.16

*Waste oil (including waste organic solvents), waste alkali, and waste acid31 ｜ Koei Chemical Report 2022

Water resources
Water usage / Total amount of water discharge (thousand of tons)
FY2019FY2020

FY2021

Total amount of water discharge

2,173

1,906

2,601

2,864

2,004

Water usage

2,753

2,450

3,154

3,406

2,458

Industrial water

547

497

512

489

400

Drinking water

13

13

14

14

14

2,193

1,940

2,628

2,904

2,045

Seawater

Message from the President

FY2018Introduction

FY2017

Safety and health data
With regard to work-related accidents, there were noindustrial injuries in FY2021.
The number of zero-injury days reached 4,784 (as ofMarch 31, 2022), which is equal to over 13 years. As shownin the following graphs, frequency rates of industrial
injuries and severity rates of industrial injuries remain zero.

Unfortunately, non-lost-time minor injuries occurred. We
conduct RC zero-accident audits even on minor injuries tofind the cause and implement additional measures, while
making efforts to undertake horizontal deployment on theprevention of the occurrence of similar injuries to achievezero-injuries.
Severity Rates of Industrial Injuries

Koei

Koei

Chemical industry in Japan (Calendar year)

Chemical industry in Japan (Calendar year)

3

Severity rate

0.2

2

0.1

Foundation for Value Creation

Frequency rate

Growth Strategy

Frequency Rates of Industrial Injuries

1

0

0

2012

2013

2014

Frequency rate

2015

2016

2017

2018

2019

2020

2021 Fiscal year

Number of industrial injury casualties
Total actual working hours (million hours)

2012

2013

2014

Severity rate

2015

2016

2017

2018

2019

2020

2021 Fiscal year

Total number of working days lost
Total actual working hours (thousand hours)

Acquisition of management system certifications
Applicable location

Certificate number

Certification dateCertification body

ISO9001:2015(Quality)

Chiba Plant, Research Laboratory,
Tokyo Head Office

JCQA-1810

July 26, 1996

Japan Chemical Quality Assurance
Ltd. (JCQA)

ISO14001:2015(Environment)

Chiba Plant, Research Laboratory,
Tokyo Head Office

JCQA-E-0969

March 12, 1999

Japan Chemical Quality Assurance
Ltd. (JCQA)

Koei Chemical Report 2022

Information

Standard｜ 32

│ Information— Financial Data │Operating Income (Millions of Yen) /Operating margin (%)

Net sales (Millions of Yen)

Operating income
Operating margin

18,14418,30918,52817,58917,296

Ordinary profit (Millions of Yen)
2,016

10.0
1,703

8.4

8.4
6.4

1,678
1,361

1,854

1,527

1,484

802

1,169

2.9
508

2017

2018

2019

2020

2021 Fiscal year

Net income (Millions of Yen) /Net income per share (Yen)

2017

2018

2019

2020

1,112.47
29,202320.6029,32329,802

32,058

2018

2019

2020

2021 Fiscal year

Total shareholders’ equity (Millions of Yen) /Shareholders’ equity ratio (%)
Total shareholders’ equity
Shareholders’ equity ratio

34,706378.51

66.6

68.7

70.5

68.8

19,46020,131

20,99722,066

2017

2018

2019

2020

63.2
21,934

192.32

5,441
960
2017

2017

Total assets (Millions of Yen)

Net income
Net income per share

196.452021 Fiscal year

2018

1,568

1,851

940

2019

2020

2021 Fiscal year

2017

2018

2017

2019

2020

2018

2021 Fiscal year

2019

2020

2021 Fiscal year

2021 (Fiscal year)

Net sales(Millions of Yen)

18,14418,30918,52817,58917,296

Operating income(Millions of Yen)

1,527

1,169

1,854

1,484

508

Operating margin

(%)

8.4

6.4

10.0

8.4

2.9

Ordinary profit(Millions of Yen)

1,703

1,361

2,016

1,678

802

Net income(Millions of Yen)

5,441

960

1,568

1,851

940

(Yen)

1,112.47

196.45320.60378.51

192.32

Total assets(Millions of Yen)

29,202

29,32329,802

32,05834,706

Total shareholders’ equity(Millions of Yen)

19,46020,131

20,99722,066

21,934

(%)

66.6

68.7

70.5

68.8

63.2

Net income per share

Shareholders’ equity ratio

33 ｜ Koei Chemical Report 2022

R&D expenses (Millions of Yen) /R&D expenses against net sales (%)

Dividend per share (Yen)

4.8

871

80

4.8
886

52.0

6.0

5.7

5.4

100

100

Introduction

R&D expenses
R&D expenses against net sales

Payout ratio (%)

70
1,002

60

1,036

1,007

30.5
25.0

26.4

6.3

2018

2019

2020

2021 Fiscal year

Cash flows from operating activities (Millions of Yen) /Cash flows from investing activities (Millions of Yen) /Free cash flow (Millions of Yen)
Cash flows from operating activities
Cash flows from investing activities

2017

2018

2019

2020

2021 Fiscal year

2017

Return on invested capital (ROIC) (%)

2018

2019

2020

2021 Fiscal year

Return on equity (ROE) (%)

Message from the President

2017Free cash flow

5,126

6.0

5.8

32.1

4,149
1,922
729

2017

776
△1,454△1,7304.4△2,459△2,23020182019

Growth Strategy

977

2,617
3.9

△1,568△1,985

1.4

8.6

4.3

4.9

△3,908△4,1852020

2021 Fiscal year

2017

2018

(Millions of Yen)

2019

2020

2017

2021 Fiscal year

2018

2019

2018

2019

2020

2020

2021 Fiscal year

2021 (Fiscal year)

871

886

1,002

1,007

1,036

(%)

4.8

4.8

5.4

5.7

6.0

Dividend per share

(Yen)

70

60

80

100

100

Payout ratio

(%)

6.3

30.5

25.0

26.4

52.0

Cash flows
from operating activities(Millions of Yen)

977

729

776

1,922

2,617

Cash flows
from investing activities(Millions of Yen)

4,149

△2,459△2,230△3,908△4,185

Free cash flow

(Millions of Yen)

5,126

△1,730△1,454△1,985△1,568Return on invested capital (ROIC)

(%)

5.8

3.9

6.0

4.4

1.4

Return on equity (ROE)

(%)

32.1

4.9

7.6

8.6

4.3

Koei Chemical Report 2022

Information

R&D expenses against net sales

Foundation for Value Creation

2017
R&D expenses

7.6

｜ 34

│ Information— Third Party Opinions │Dr. Kazuhiro Bai, Specially Appointed Professor in the College of Business & Graduate School of Business at
Rikkyo University, read the Koei Chemical Report 2022 and offered his opinions.
Specially Appointed Professor
College of Business & Graduate School of Business, Rikkyo University
Dr.

Kazuhiro Bai
ProfileServing at Rikkyo University since 2018. Visiting professor in the Business Administration Program of Bond University (Australia)
in 2008. His works include Outlook of CSR Accounting, Moriyama Shoten; Introducing CSR Accounting, Japanese Standards
Association; First Step to CSR Management for Corporate Employees, co-author, Dai-Ichi Hoki; “Deployment of Financial Reporting
Theory based on Global Governance”; CSR Management Control; Essentials for a Going Concern: Five Principles to Overcome
Environmental Change; Corporate Ethics and Sustainability of Society, co-author, Reitaku University Press, and many more.

In the Koei Chemical Report, Koei Chemical Company, Limited(“Koei Chemical”) has summarized its initiatives for theenhancement of corporate value from April 2021 to March 2022
in its aim to solve social issues based on creative technologies. I
will list below my outside party opinions in the viewpoint ofresearching lasting corporate management and CSR accounting,which aims to quantify CSR activities.

Points to be commended

There are two points to be commended in Koei Chemical’sreport for this year. Firstly, I focus on a point that, comparedwith last year’s report, they seek to organize the value creation
process systematically, new contents and more detailed
explanations have been added. Specifically, a distinctive featureof the report was that data has been organized along a threestage timeline, from “Input” to “Core of the value creation
process” to “Output.” This presents Koei Chemical’s efforts toaccelerate its contributions to solutions to social issues based on
its creative technologies and to promote the Corporate Business
Plan “KX2.0: Striving for transformation utilizing knowledge andexperience of over 100 years” in its efforts to enhance corporate
value (Pages 5-6). Further, the “Output” stage has been divided
into “economic value” and “social value,” and numerical targets
have been established in the form of “financial information +non-financial information” to encourage the promotion of value
creation activities within the company (Page 6). The structure of
the report, in which Koei Chemical’s value creation process isstated in the introduction section of the report with simple andeasy-to-understand explanations, is highly commendable in that
it is strongly imbued with the company’s will to contribute to thesolution of social issues. The second point to be commended isthat, based on the Corporate Business Plan, the report states thebasic policies for its growth strategy (“accelerate businessgrowth strategy,” “strengthen business foundations” and“enhancement of human resources development”), which areimportant factors for the enhancement of corporate value, in its
endeavors to expand growth strategy factors to promote its
contribution to the solution of social issues (Page 12). In
particular, the report describes Koei Chemical’s ventures into

digital transformation (DX), enhancement of management
capability (MX), strengthening governance (GX), and pursuingsustainability (SX), which make up its policy of “strengthenbusiness foundations,” and its development of frameworks forworking to enhance corporate value while promoting innovation
as a united force across the entire company. This is a distinctive
feature of the company’s initiatives and one that is worthy ofparticular attention (Pages 14-28). This is because the report
clearly shows Koei Chemical’s passionate resolve to enhance
corporate value by incorporating sustainability action, whose
connections to business activities can be difficult to glean, into
its Corporate Business Plan. To summarize this year’s report, it
consists of contents that indicate the company’s path toward
new information disclosure in its challenge to solve social issues,
while its Corporate Business Plan remains as the foundation. My
view is that this report provides great expectations for future
developments.

Points to be improved

Koei Chemical’s reports are evolving every year, and I believethat in terms of individual matters, most of the points requiring
mention have been resolved. For this reason, I would like todiscuss the future outlook as an area in which I would hope to
see improvement going forward. Taking a general view of thecompany’s initiatives, the process for incorporating into businessactivities actions to encourage sustainable value creation thatwill contribute to solutions to social issues and connecting themto the enhancement of corporate value has been organized ina well balanced manner. The next step I look forward to seeing
is for the strengthening of profit distribution policies to bepositioned within the company’s growth strategies in more
concrete form, to realize a virtuous circle between sustainablegrowth and profit distribution, which is a theme attracting muchattention of late. I also recommend that the company consider
the relationship between this theme and its corporate valueenhancement. I hope that my recommendations will be used as
reference to lead to the further development of the company’s
initiatives.

Response to Third Party Opinions

Takashi Ohata
Executive Officer (in charge ofGeneral Affairs & Personnel
Office, and Internal Control &Audit Office)35 ｜ Koei Chemical Report 2022

I deeply appreciate Dr. Kazuhiro Bai’s valuable remarks again this year.
Koei Chemical launched its Corporate Business Plan “KX2.0: Striving for transformation
utilizing knowledge and experience of over 100 years” in April this year. Dr. Bai has commended
this year’s report for indicating the Company’s path toward new information disclosure in ourchallenge to solve social issues, while keeping our Corporate Business Plan as our foundation,and for providing great expectations for future developments. I also appreciate his praise for theway in which our reports are evolving every year.
As Dr. Bai has proposed, we will factor the development of strategies that reflect a
virtuous circle of growth and profit distribution and linking those strategies to corporate valueenhancement into the next steps to be considered, and we will unite across the entire Company
toward the sustainable creation of added value and the enhancement of corporate value.

│ Information — Company and Investor Information │(As of March 31, 2022)

Company name:

Corporate data

Location of head office: 1-8, Nihonbashi-Koamicho, Chuo-ku, Tokyo 103-0016,
Japan(As of October 1, 2022)

https://www.koeichem.com/en.html

Date of establishment:

June, 1917

Capital:2,343 million Yen

Number of employees:

401

Business description:

Manufacture and sales of raw materials and intermediates
for pharmaceutical/agrochemical products, paints, dyes,
and various synthetic resins, etc.

Fiscal year-end:

March 31

Ordinary general meeting of shareholders:

Held in June

Stock Data:

Authorized number of shares･････16,000,000
Issued number of shares ･･･････････4,900,000
Number of shareholders ････････････････ 2,938

Representative Director &President

Managing Executive
Officer

Hidetada Kawai

Director/
Managing Executive Officer

Keiko Fukahori

Managing Executive
Officer

Hiromitsu Kokami

Director/
Executive Officer

Hideo Wada

Executive Officer

Noriyasu Sakamoto

Director

Motoyuki Sakai

Executive Officer

Akihiko Egawa

Outside Director

Hideo Higashi

Executive Officer

Takashi Ohhata

Director (Audit &Supervisory Committee Member)

Kenji Kondo

Outside Director (Audit &Supervisory Committee Member)

Ken Takiguchi

Outside Director (Audit &Supervisory Committee Member)

Shingo Yoro

Outside Director (Audit &Supervisory Committee Member)

Yoko Hatta

Branch Offices, etc.

Growth Strategy

Ray NishimotoMessage from the President

Board of Directors and Senior Management

URL:

Introduction

Stock Information

Business locations

KOEI CHEMICAL COMPANY, LIMITEDFoundation for Value Creation

Tokyo head office
1-8, Nihonbashi-Koamicho, Chuo-ku, Tokyo 103-0016, JapanTEL 81(3)6837-9300 FAX 81(3)6837-9307
Sales & Marketing: TEL 81(3)6837-9290 FAX 81(3)6837-9310
Chiba plant · Research laboratory
25, Kitasode, Sodegaura-shi, Chiba 299-0266, Japan
TEL: 81(438)63-5511 FAX: 81(438)63-5546
Brussels Representative Officec/o Sumitomo Chemical Europe S.A./N.V.
Woluwelaan 57, B-1830 Machelen, Belgium% of total shares
held
55.84

Kinkisangyou Shinkumi Bank

240

4.91

Osamu Taneda

103

2.11

Masahiro Iso

43

0.90

Koei Chemical Employee Shareholder Plan

43

0.89

Shigeharu Sakamoto

40

0.82

Maruishi Chemical Trading Co., Ltd.

33

0.69

Gakuji Ooshio

30

0.63

Koji Yamasaki

26

0.54

Munetaka Nishikawa

23

0.48

Name

Information

Sumitomo Chemical Co., Ltd.

Number of shares(in thousands)
2,731

Major Shareholders

NOTE: The Company’s treasury shares (8,883 shares) were excluded in the calculation of the percentage of total
shares held.
Koei Chemical Report 2022

｜ 36

Bringing 100 years of technology and trust,
now and to the future

KOEI CHEMICAL CO., LTD.
General Affairs and Personnel Office
1-8, Nihonbashi-Koamicho, Chuo-ku, Tokyo 103-0016, JapanTEL 81(3)6837-9300 FAX 81(3)6837-9307
Sales & Marketing: TEL 81(3)6837-9290 FAX 81(3)6837-9310
https://www.koeichem.com/en.html