Innovation throughCompounding

DIC brings innovation tosociety through its corecompounding technologies
Building on fundamental pigment and resin dispersion
and compounding technologies realized throughthe production of printing inks, DIC has succeededin combining materials with different properties andperformance characteristics to develop groundbreaking
products and create new value. DIC’s mainstay productgroups, which include printing inks, polyphenylene
sulfide (PPS) compounds and liquid crystal (LC)materials, are the result of innovations made possible
by its compounding technologies.

Making it
Colorful

DIC helps make life colorful
Established in 1908 as a manufacturerof printing inks, DIC has built on its coreorganic pigments and synthetic resins
technologies to develop an extensive
range of materials and products andtransform itself into a global powerhouse.
Today, DIC provides not only printing inksand colorants but also a variety of otherproducts and services that deliver “color”
and “comfor t,” enriching and adding
vibrancy to people’s lives. The global DIC
Group employs a broad spectrum of highly
skilled individuals who are committed toworking together while at the same time
respecting diversity to create an evermore-vivid tapestry of value.

Specialty
Solutions1̲ DIC Report 2016

Going forward, the DIC Group will accelerate innovation
on a global scale by capitalizing on its ability tocompound dissimilar materials and create new value
to transform its prowess in wide-ranging technological
GRPDLQVLQWRVLJQL¿FDQWFRPSHWLWLYHDGYDQWDJHVDIC draws on its expertise andcomprehensive strengths tooffer solutions
DIC strives to respond swiftly and flexibly tothe needs of its customers and markets and,as a specialist in providing solutions that
help resolve challenges, to provide value thatexceeds expectations.
DIC defines itself as a team of specialists
with proficiency in such diverse fields as
printing inks, fine chemicals, polymers,
compounds and application materials. The
DIC Group will continue to leverage its
competitive advantages, notably its specialized
technologies and know-how, to offer specialty
solutions that ensure it remains the partner ofchoice for its customers.

Connecting the DIC Group and its Stakeholders

DIC Group Communications Tools
The DIC Group uses a variety of tools to promote communication
with its many stakeholders to encourage greater awareness of theGroup’s activities. More detailed sustainability-related informationand data can be found on the DIC website.

3ULQWHG3')î)RUP3XEOLFDWLRQV

Reports on activities
DIC Report

DIC Report(summary version)(complete version)

Annual Report

Contents
The DIC Group: A Global Powerhouse

3

A Message from the President

5

The DIC WAY, The DIC Group’s Sustainability Program, Branding

7

New Medium-Term Management Plan: DIC108

9

Messages from Top Executives at Regional Headquarters

11

The DIC Group’s Business Portfolio

13

Special Feature

Product Development for a Sustainable Society
Report on sustainability
initiatives and corporate
SUR¿OH SXEOLVKHGDQQXDOO\

Report on sustainability
initiatives and corporate
SUR¿OH SXEOLVKHGDQQXDOO\(Printed report)(PDF-form report)

Repor t on operations
DQG¿QDQFLDOFRQGLWLRQ(PDF-form report)

DIC Website

Topic

Real-time information
DIC Global Website
WEB

http://www.dic-global.com/en/csr/

U m b r e l l a w e b s i t e p r ov i d i n g
information to the global public
about the DIC Group and reports
on its various activities; updated asnecessary

About this Report
The DIC Group publishes a combined corporate profile andsustainability report with the aim of presenting a clear, easy-tounderstand picture of the Group and its sustainability initiatives. For',&5HSRUWWKH*URXSSXEOLVKHGDVLPSOL¿HGVXPPDU\YHUVLRQ(printed), which focuses on key highlights, and a more detailed
complete version (PDF), which contains extensive quantitative data.
DIC Report (Complete version) (PDF-form report)
WEB

19,QNMHW,QNVIRU,QGXVWULDODQG2I¿FH3ULQWHUVSEPAREL® Hollow-Fiber Membranes and Membrane Modules
Pigments for Cosmetics

http://www.dic-global.com/en/csr/annual/

1RWH7KHGHVLJQDWLRQ³$VLD±3DFL¿FUHJLRQ´DVXVHGLQWKLVUHSRUWUHIHUVWR$VLD²
H[FOXGLQJ-DSDQDQG*UHDWHU&KLQD²DQG2FHDQLD

Links with the DIC Website
The ( WEB ) mark indicates that more detailed information and/or
data can be found on the indicated page of the DIC website.

Aquacure Inkjet Inks Technology Delivers the Positive Print Characteristics of a Water-Based Ink 22

Corporate Governance23

Overview of Materiality Analysis

24

Sustainability Report25

Compliance
Risk Management
Information Security

26
26
28

Environment, Safety and Health (ESH)
Quality
Human Resources Management
Sustainable Procurement

29
38
39
42

Business Models that Respond to Social Imperatives
New Technology Development and Value Creation
Harmony with the Community and Social Contributions
Communication with Stakeholders

43
44
45
47

7KLUG3DUW\9HUL¿FDWLRQ48

DIC Group Milestones

49

Corporate Data

51

DIC website WEB http://www.dic-global.com/en/

Scope of Reporting
In principle, this report provides information on DIC Corporation andconsolidated DIC Group companies in Japan and overseas. For informationon the scope of reporting for ESH-related initiatives, please visit the pertinent
page of the DIC website.
WEB

http://www.dic-global.com/en/csr/pdf/dic_report_scope_en_2016.pdf

Reporting Period
Fiscal year 2015 (January 1–December 31, 2015)

Date of Publication
June 2016 (The next report is scheduled for publication in June 2017.)

Guidelines Referenced*XLGHOLQHV UHIHUHQFHG LQ WKH SUHSDUDWLRQ RI WKLV UHSRUW ZHUH ,62  WKH,QWHUQDWLRQDO2UJDQL]DWLRQIRU6WDQGDUGL]DWLRQ¶VVWDQGDUGIRUVRFLDOUHVSRQVLELOLW\released in 2010; Japan’s Responsible Care Code; and the Global Reporting Initiative’s
G4 Sustainability Reporting Guidelines.

Cover Design
The cover of this year’s DIC Report is a paper craft artwork that
communicates the appeal of the DIC Group’s “Color & Comfort”
EUDQGVORJDQDQGHYRNHVLQLWLDWLYHVEHLQJXQGHUWDNHQWREHQH¿W
the global environment, ecosystems and social systems, aswell as to ensure sustainable growth for the Group.

DIC Report 2016 ̲2

The DIC Group: A Global Powerhouse
Net Sales

Corporate Data

(Billions of yen)

1,000
800

Registered name:

0

820.0

830.1

705.6

703.8

’11 ’12’13 ’14 ’15（FY）

Operating Income (Billions of yen)
50

)

40
30
20

51.1

Notes : 1.The consolidated results for fiscal year 2013
comprise the accounts for the nine months ended
December 31, 2013, of DIC and its domestic
subsidiaries but one and the 12 months ended
December 31, 2013, of its overseas subsidiaries
and one domestic subsidiary.
2.Corporate data is as of December 31, 2015. Net
sales and operating income are for fiscal year 2015.

Global Network

734.3

200

41.1

(

174 Domestic: 31
Overseas: 143

400

40.2

Number of subsidiaries
and affiliates:

600

38.5

Date of foundation:
Date of incorporation:
Paid-in capital:
Number of employees:

DIC Building, 7-20,
Nihonbashi 3-chome,
Chuo-ku, Tokyo 103-8233,
Japan
February 15, 1908
March 15, 1937
¥96.6 billion
20,264(Nonconsolidated: 3,581)

35.0

Corporate headquarters:

10
0’11 ’12 ’13’14 ’15（FY）

DIC has 174 companies in 64 countries and territories around the world.

Asia and Oceania
DIC (China) Co., Ltd., DIC Asia
Pacific Pte Ltd and others

China

Net sales32¥158.5 billion
Operating income¥13.9 billion

South &Southeast Asia

Japan

31

OceaniaJapan

2（including the ROK）

21

DIC Corporation, DIC Graphics
Corporation and others

Net sales¥314.3 billion
Operating income¥24.5 billion

Breakdown of Net Sales by Region

Breakdown of Operating Income by Region

Asia and Oceania

Asia and Oceania

19.3%

24.8%

North, Central andSouth America

18.7%￥820.0billionJapan

North, Central andSouth America

38.3%

13.5%

Europe and Africa

Europe and Africa

23.6%

18.0%

Note: Operating income as used here includes eliminations (approximately ¥4.9 billion). Accordingly, these percentages do not represent shares of reported operating income.

3̲ DIC Report 2016￥51.1
billion

Japan

43.7%

Printing Inks

Business Segments

Fine Chemicals

Polymers

Application Materials

The DIC Group has leveraged its organic pigments and synthetic resins, essential to the manufacture of printing inks,
to build an extensive business portfolio.

Printing Inks ▶ Page 14 Fine Chemicals ▶ Page 15
Net sales…………

Compounds

Polymers ▶ Page 16

Compounds ▶ Page 17 Application Materials ▶ Page 18¥412.6 billion Net sales………… ¥135.5 billion Net sales………… ¥194.6 billion Net sales…………… ¥63.6 billion Net sales…………… ¥57.5 billion¥19.0 billion Operating income… ¥13.1 billion Operating income… ¥16.0 billion Operating income…… ¥5.7 billion Operating income…… ¥2.1 billion

Operating income…

Application
Materials

Printing Inks

6.7%

47.8%

Breakdown of Compounds
Net Sales by 7.4%
Segment￥820.0billionPolymers

Fine Chemicals

15.7%

Application
Materials

3.8%
Breakdown ofCompounds
Operating Income 10.2%
by Segment
Polymers
28.6%

22.5%

Printing Inks

34.0%

￥51.1
billionFine Chemicals

23.4%

Notes:
1. Net sales and operating income as used here include intersegment transactions. For this reason, and because of the existence of transactions
that are not attributable to reportable segments, these figures differ from reported net sales and operating income figures.
2. Effective from January 1, 2016, DIC revised its segmentation. Figures for fiscal year 2015 have been restated to reflect the revised segmentation.

Central andSouth America
Sun Chemical Group and others

EuropeNet sales¥153.6 billion

North America

Operating income

14¥7.6 billion

Central & SouthAmerica

53

Europe and Africa

16

Sun Chemical Group and others

Net sales¥193.7 billion
Operating income¥10.1 billion

Africa5

Principal Global
R&D Sites
Cincinnati(United States)

Polymer
Technical Center—
China
Printing Inks
Technical Center—
China

St. Mary Cray
Technical Centre(United Kingdom)

Qingdao DIC
Finechemicals(PRC)

Carlstadt(United States)
Eurolab(Germany)

Central ResearchLaboratories(Japan)Polymer
Technical Center—
Asia Pacific(Thailand)

Printing Inks
Technical Center—
Asia Pacific(Thailand)

DIC Report 2016 ̲4

A Message from the President

DIC108: Our New Medium-Term Management Plan Gets Under Way
Guided by our new brand slogan, “Color & Comfort,” we will continue working to achieve sustainable growth.

Ź The DIC Group Today
The DIC Group is a multinational organization comprising
174 companies in 64 countries and territories around theworld. Across our global operations, we continue to promote
development and innovation in a manner that contributes tosustainable growth for both our customers and society.
Today, the DIC Group operates in an environment
characterized by rapid, all- encompassing change.
Realignment in the chemicals sector is progressing at a
EHZLOGHULQJUDWH$JDLQVWWKLVEDFNGURSLQ¿VFDO\HDU
our consolidated net sales edged down to ¥820.0 billion,
while operating income rose 24.3%, to ¥51.1 billion.
Under our previous medium-term management plan,
DIC105, we made progress in implementing strategies
aimed at establishing a foundation for sustainable growth,
namely, in restructuring our printing inks businesses inNorth America and Europe and ensuring a more balanced¿QDQFLDOSRVLWLRQ+RZHYHULQWHUPVRIRXUVWUDWHJ\WRFUHDWH
next-generation businesses, challenges remain.

Ź DIC108,Q¿VFDO\HDUZHNLFNHGRII',&RXUQHZPHGLXP
term management plan. The vision for our future describedin DIC108 is an extension of that outlined in DIC105, as are
our overarching goals. We have positioned the new plan as
the first phase of a growth scenario taking us up to fiscal

year 2024, and will continue to press forward with efforts aimed
DWIXO¿OOLQJRXUPLVVLRQ³7KURXJKFRQVWDQWLQQRYDWLRQWKH',&
Group strives to create enhanced value and to contribute tosustainable development for its customers and society.”
DIC108 outlines a medium- to long-term road map thatpays heed to global megatrends while organizing whatmust be done between now and fiscal year 2018—thenext milestone in our evolution—into basic strategies forbusiness (comprising four business initiatives), cash flow
management and the establishment of a solid management
infrastructure. Guided by these strategies, the employees
and executives of the DIC Group pledge to work with the
DLPRIHQVXULQJWKDWZHDFKLHYHRXUWDUJHWVIRU¿VFDO\HDU
2024. Of particular note, we will work to expand businesses
that will drive growth, including thin-film transistor (TFT)
LCs and high-performance materials such as functional
pigments. We will also actively pursue opportunities forstrategic investments (mergers and acquisitions (M&As),
etc.), to further strengthen our capabilities in areas in which
we have particular expertise. In addition, we will work tocreate next-generation businesses by promoting open
innovation, enabling us to make effective use of outside
UHVRXUFHVZKLFKZLOOIXUWKHULQFUHDVHUHVHDUFKHI¿FLHQF\Ź Ensuring Sustainable Growth
As part of our commitment to realizing sustainable growth,
we classify our sustainability initiatives into four regionalgroupings: Japan, Greater China, the Asia–Pacific region
and the Sun Chemical Group. In recent years, awareness(Left) C e r e m o n y t o c e l e b r a t e t h e 4 0 t hanniversary of subsidiary Lidye ChemicalCo., Ltd., in Taiwan (April 2015)(Right) Top management ESH audit at the Tokyo
Plant (September 2015)5̲ DIC Report 2016

of social imperatives pertaining to environment, society
and governance (ESG)-related issues has grown. This isevidenced by developments such as the Paris Agreement,
adopted in December 2015, and Japan’s Corporate
Governance Code, which entered into force in June 2015, towhich we, as a major corporation, are working to respond.
As an organization with global operations, we also recognize
the importance of welcoming diversity, ensuring safety andpromoting effective supply chain management to create asolid foundation for sustainable growth.
Having declared 11 DIC Group sustainability themes andformulated theme-specific approaches, we are currently
promoting a variety of related initiatives aimed at creatingnext-generation businesses in such areas as electronics,
packaging, healthcare and low carbonization, throughwhich we will endeavor to contribute to, among others,
environmental protection, safety and security, and therealization of a smart society.

Ź The Future of the DIC GroupAs a first step in formulating DIC108, we revisited ourmanagement concept, “The DIC WAY,” which includes our
mission and vision, and pondered the question of who weare and what role we are expected to play going forward.
This process led us to articulate three key corporate values:“Making it Colorful,” “Innovation through Compounding”
and “Specialty Solutions.” (For more information, pleasesee page 1.) Having chosen a new brand slogan, “Color &Comfort,” we pledge to work as one to promote sustainablegrowth. In these and all our efforts, we look forward to theongoing support and guidance of our stakeholders.

Representative Director,
President and CEO
DIC Corporation

Yoshiyuki Nakanishi

DIC Report 2016 ̲6

The DIC Way
The DIC WAY was formulated to represent the DIC Group’s fundamental management philosophy. As a firststep in formulating DIC108, DIC revised The DIC WAY to better reflect social imperatives, to create a simple,
clear message, in line with which the Group will continue to promote efforts aimed at enhancing corporate
value and achieving sustainable growth.

The DIC WAY
MissionMissionThrough constant innovation, the DIC Group strives
to create enhanced value and to contribute tosustainable development for its customers and society.

VisionColor & Comfort by Chemistry

VisionSpiritSpiritDrive, Integrity, Dedication, Collaboration, Harmony

Mission: 2XU0LVVLRQGH¿QHVZKDWWKH',&*URXSXOWLPDWHO\DVSLUHVWREH
Enhanced values we strive to create are “dignity and trust,” “customer satisfaction” and “harmony with society.”
Vision:2XU9LVLRQGH¿QHVWKHEURDGGLUHFWLRQLQZKLFKWKH',&*URXS¶VEXVLQHVVPXVWDGYDQFHWRDFKLHYHRXU0LVVLRQ

Spirit:2XU6SLULWVHWVRXWWKHVSHFL¿FSULQFLSOHVRIFRQGXFWWKDW',&*URXSHPSOR\HHVVKRXOGDOZD\VKRQRUDQGZKLFKVKRXOGserve as their guideposts in order to achieve our Mission, including encouraging our employees to think and judge
matters on their own before taking action.

Branding
Having positioned 2016 as the inaugural year of its new branding program, the DIC Group is implementing a broad range of systematic,
forward-looking measures directed at both internal and external stakeholders. As a first step, the Group pondered the question of whatvalue it brings to its customers and what role it is expected to play. This process led to the establishment of a new brand slogan, whichconveys the value that the Group brings to its customers, and to the articulation of three corporate values.

Brand slogan

Based on the Group’s “Color & Comfort by Chemistry” management vision, the new brand slogan was chosen because it clearly and concisely conveys thevalue that the DIC Group brings to its customers and because its suitability for global use will encourage greater brand awareness across the Group.
“Color & Comfort” expresses the DIC Group’s desire to help create a society that adds rich color and comfort to people’s lives. Looking ahead,
the Group will work to communicate the message of its new brand slogan in a consistent manner to both internal and external stakeholders.
7̲ DIC Report 2016

The DIC Group’s Sustainability Program
In recent years, the need to achieve sustainability in a manner thattakes into account, among others, the environment, ecosystems andsocioeconomic issues, including global warming and the depletion ofnatural resources, has gained increased recognition worldwide. Today,
the DIC Group promotes a variety of sustainability initiatives worldwide
and works to maintain an accurate grasp of social imperatives
pertaining to ESG-related issues.

The DIC Group launched its corporate social responsibility (CSR)
program in fiscal year 2007, identifying multiple key themes as a
IUDPHZRUNIRULWVHIIRUWV+DYLQJIXUWKHUFODUL¿HGWKHRYHUDOOGLUHFWLRQRILWVVXVWDLQDELOLW\UHODWHGLQLWLDWLYHVHIIHFWLYHIURP¿VFDO\HDUWKH
Group changed the designation used across its program from “CSR” to“sustainability,” which it feels is more appropriate for a globally active
corporate entity.

Basic Sustainability Policy
7KH',&*URXSLVGHGLFDWHGWRFRQGXFWLQJLWVEXVLQHVVZKLOHUHWDLQLQJDVWURQJFRPPLWPHQWWR¿YHNH\FRQFHSWVSUHVHUYLQJ
safety and health, ensuring fair business practices and respect for human rights, maintaining harmony with the environment
and advancing its protection, managing risks, and creating value for society through innovation.
DIC Group employees will continue working to deliver the value that its stakeholders—including its customers, suppliers,
local communities, shareholders and investors, and employees—expect, showing ingenuity and a sense of responsibility.
The Group itself will strive to remain an organization that contributes to sustainability for society and the global environment
by capitalizing on its businesses to achieve unfaltering growth, thereby enhancing its own sustainability.

Leveraging its Position as a Global Manufacturer ofFine Chemicals to Support the UNGC
6HHNLQJWRIXO¿OOLWVUHVSRQVLELOLWLHVDVDPHPEHURIWKHLQWHUQDWLRQDOFRPPXQLW\LQDPRUHSURDFWLYHPDQQHULQ'HFHPEHU
2010 the DIC Group pledged its support for the 10 principles put forth by the United Nations (UN) and became a signatory
to the United Nations Global Compact (UNGC).
Inaugurated in 2000, the UNGC is a voluntary initiative for companies that seek to achieve sustainable development
worldwide. More than 13,000 companies and organizations have pledged their support for the UNGC in the belief that global
VXVWDLQDEOHGHYHORSPHQWLVSRVVLEOHLIFRPSDQLHVDOLJQWKHLUEXVLQHVVSUDFWLFHVZLWKDQGIXO¿OOWKHLUVRFLDOUHVSRQVLELOLWLHV
in, 10 globally accepted principles in the areas of human rights, labor, the environment and the prevention of corruption.

Three corporate values

Making it Colorful- DIC helps make life colorful -Innovation through Compounding- DIC brings innovation to society through its core compounding technologies -Specialty Solutions- DIC draws on its expertise and comprehensive strengths to offer solutions -The DIC Group has summarized the value that it brings to stakeholders in the form of these three corporate values.

DIC Report 2016 ̲8New Medium-Term Management Plan: DIC108
Based on its mission, vision and corporate values, DIC formulated its new medium-term management plan,
DIC108, which sets forth a growth scenario that outlines what needs to be done between now and fiscal year2018 to achieve sustainable growth.

■ The Future of the DIC Group
MissionThrough constant innovation, the DIC Group strives to create enhanced value and to contribute tosustainable development for its customers and society.

VisionColor & Comfort by Chemistry

Three corporate values that will underpin efforts to realize our Vision
Making it Colorful- DIC helps make life colorful -Innovation through Compounding- DIC brings innovation to society through its core compounding technologies -Specialty Solutions- DIC draws on its expertise and comprehensive strengths to offer solutions Growth attributable tostrategic investments(M&As, etc.)

Growth Scenario and Positioning of DIC108

Next-generation
businesses

Ensure the sustainability of businesses
with stable earnings bases
t3FTQPOTFTUPFOWJSPONFOUBMDPODFSOTt3BUJPOBMJ[BUJPO
t4USBUFHJDJOWFTUNFOUT ."T FUD
2016

2017
DIC108Create business models that Achieve sustainablegrowth by revamping
address social imperatives
business portfolio
t&MFDUSPOJDT
t1BDLBHJOHt)FBMUIDBSF
t-PXDBSCPOJ[BUJPO

2018

2019

2020
DIC111

2021

2022

2023
DIC114

Businesses that will
drive growthBusinesses withstable earnings bases

2024■ Basic Strategies
Business
Translate the growth scenario
into reality through four businessinitiatives▶ Business initiative (1): Expand businesses that will drive growth▶ Business initiative (2): Pursue opportunities for strategic investments (M&As, etc.)▶ Business initiative (3): Rationalize operations in mature markets▶ Business initiative (4): Create next-generation businesses

FinancePursue an ideal financialbalance through cash flow
management

Ensure a balance among investment in growth, financial health and shareholder returns▶ Budget ¥150.0 billion for strategic investments▶ Keep debt-to-capital (D/C) ratio at around 50%▶ Increase dividend payout ratio to around 30%

Management Infrastructure
Support globalization and increase
sophistication with the establishmentof a solid management infrastructure

Operations:▶ Strengthen technical, R&D, purchasing, SSC* and IT configurations globally▶

Corporate governance:
Address challenges in accordance with the Corporate Governance Code* Shared services center9̲ DIC Report 2016

■ Business Strategy: Translate the DIC108 growth scenario into reality through four business initiatives
Business initiative

Expand businesses that will drive growth (Contribution to annual operating income: ¥15.0 billion)

1

High-performance materials (TFT LCs, functional pigments, PPS compounds and inkjet inks)
DIC will concentrate management resources on high-performance materials with the potential for market growth overthe medium term and expand businesses by 1.7 times over the plan’s three years.

TFT LCs

Functional Pigments
ŶIntroduce new products in the area of processed pigments andexpand sales by increasing production capacity
([SDQGSRUWIROLRRISLJPHQWVIRUFRORU¿OWHUV Increase production capacity for pigments for optical materials
 Expand sales of pigments for cosmetics

ŶFocus on R&D for n-type TFT LCs
ŶSecure share of market for LCs for LCD manufacturers in
the PRCŶIncrease market share by bringing new products to market

PPS Compounds

Inkjet Inks

ŶExpand sales for automotive applications
 (VWDEOLVKJOREDOVXSSO\FRQ¿JXUDWLRQ Expand and improve sales and technical service facilities

ŶIntroduce new products Water-based inks for high-speed laser printers
 Inks for textiles
 Inks for coated papers
Ŷ(VWDEOLVKJOREDOSURGXFWLRQFRQ¿JXUDWLRQ

Packaging materials  *UDYXUHLQNVÀH[RLQNVSDFNDJLQJDGKHVLYHVDQG¿OPV
DIC will work to offer distinctive and innovative solutions for customers and brand owners by providing one-stop
services that tap into the DIC Group’s extensive range of packaging-related materials and technologies.

Business initiative2

Pursue opportunities for strategic investments (M&As, etc.)&DSLWDOL]LQJRQDGUDPDWLFLPSURYHPHQWLQ¿QDQFLDOKHDOWKXQGHU',&',&ZLOOEXGJHWELOOLRQIRUVWUDWHJLFLQYHVWPHQWVLQFOXGLQJLQ0 $VRYHU
three years. In addition to expanding business domains through the creation of next-generation businesses, the Company will work to increase the salesof its businesses by taking steps to prepare for a future business portfolio overhaul, the aim of which will be to expand businesses that will drive growth,and by ensuring the sustainability of businesses with stable earnings, thereby translating DIC108’s growth scenario into reality.
Business initiative3

Rationalize operations in mature markets (Contribution to annual operating income: ¥11.0 billion)

Publishing inks businesses in North America and Europe
DIC will seek to further enhance cost competitiveness by optimizing regional supply systems in line with production configurations streamlined
under DIC105 and to ensure a sustainable business structure even in an environment characterized by falling demand.

Mature businesses in Japan (Publishing inks, polymers and support departments)
DIC will implement a drastic restructuring in advance of an expected decline in demand and will allocate management resources to growthbusinesses and markets.

Business initiative

4

Create next-generation businesses

DIC will address social imperatives by creating new value in such areas as materials for printed electronics, gas-barrier materials, health foods
and algae-derived oils, as well as promote open innovation to overcome dependence on in-house resources and expand technical domains.

■ Quantitative Targets of DIC108 the first year of DIC108, with ¥65.0 billion its target for the plan’s final year.
The Company is targeting record-high operating income of ¥54.0 billion in(Billions of yen)

Net sales
Operating income
Net income
ROE (Return on equity)
Ordinary investments
Strategic investments (M&As, etc.)
D/C ratio*
Dividend payout ratio

2015
Actual2016
Target2017
Target2018
Target¥820.0
¥51.1
¥37.4
15.0%
¥34.0
—
47%
21%

¥870.0
¥54.0
¥25.0
9.0%

¥920.0
¥58.0
¥30.0
10.0%
¥120.0¥150.0Around 50%
Around 30%¥960.0
¥65.0
¥40.0
12.0%

* D/C ratio: Interest-bearing debt / (Interest-bearing debt + Net assets)

DIC Report 2016 ̲10

Messages from Top Executives at Regional Headquarters
Working for You: Meeting Customer
Needs while Reducing
Environmental Impact
Sun Chemical Corporation produces printing inks, pigments,
coatings and specialty materials for major industries acrossEurope, the Americas, the Middle East and Africa. With sales of$3 billion and over 8,000 employees, we operate 146 facilitiesin 37 countries. Sun Chemical made dramatic improvements
in operating income throughout DIC105, and we will continue
striving to meet and exceed the challenging DIC108 targets in
our regions.
Sun Chemical Corporation
President & Chief Executive Oﬃcer

Rudi Lenz

Sun Chemical’s sustainability efforts are based on the concept

Taking on the Role ofDriving Growthunder a Global Model
0\IHHOLQJLQWKLVWKH¿UVW\HDURI',&LVWKDWIRUXVWR
achieve the medium-term management plan’s targets it is
crucial that we move closer to truly global management.
Whether it be in implementing our business programs ordeveloping management infrastructure, it will be difficult
to realize progress unless we are global. I believe that
WKH$VLD±3DFL¿FUHJLRQKDVDQLPSRUWDQWUROHWRSOD\DVD
touchstone for the Group’s globalization.
DIC Asia Paciﬁc Pte Ltd
Managing Director

Kazunari Sakai

The DIC Group’s presence in the Asia–Pacific region
comprises 19 Group companies in 12 countries andPromoting the Strengtheningof Marketing Functions andResponding to Demand throughSelection and Focus

DIC (China) Co., Ltd.
Chairman and General Manager

11̲ DIC Report 2016

Hideki Inouchi

With a population of over 1.3 billion, the People’s Republic ofChina (PRC) is seeing a sharp rise in purchasing power. The
standard of living of the middle class is greatly improving, as isclearly illustrated through the tourist shopping sprees we hearso much about. Meanwhile, the problem of overproductionin the Chinese economy is a major issue, which has been
particularly apparent in such sectors as cement, steel andcoal. Economic growth is slowing, and this year’s National
People’s Congress adopted a GDP growth target of between

of eco-efficiency as defined by the World Business Council
for Sustainable Development: “The delivery of economicallycompetitive goods and services that satisfy customers’ needs
and bring quality of life, while progressively reducing ecologicalimpact and resource intensity throughout the life cycle.” In thepast year, we have made progress on most of our metrics throughcareful selection of materials and manufacturing processes andthrough working proactively with government and industry tradegroups. In 2016, we are making further progress toward this goalby also working closely with our suppliers to reduce the overall
environmental footprint of their products and processes. Recent
successes include:Ɣ Switching to bio-sourced ethanol derived from corn
Ɣ Increasing the use of bio-sourced resins (tall oil or gum rosins) for publication inks
Ɣ Switching to reconditioned industrial containers for more and more of our packaging

Ɣ 6KLIWLQJVXSSO\RIFDUERQEODFNWRDQHZSURFHVVXVLQJVLJQL¿FDQWO\OHVVHQHUJ\
Ɣ 5HSODFLQJRXUDJLQJLQWHUQDOFDUÀHHWZLWKPRUHIXHOHI¿FLHQWYHKLFOHV
Ɣ Shifting internal distribution to intermodal (rail + truck) wherever feasible

territories. The region is a mixture of many ethnicities,
languages and religions, and the level of development
varies greatly. Many of these companies have fully local
management teams. In many cases, the administrative
manager of each company is also a local individual.
Another feature of note is that there are many women inthese companies’ management teams. In other words,
these companies really personify diversity.

configuration, including through the establishment ofmother plants, will be a key factor in determining our
success. On the administrative front, we are working to
SURYLGHHI¿FLHQWDJLOHVXSSRUWIRUORFDORSHUDWLRQV

Going for ward, the challenge is how to facilitate
collaboration at the regional level among such a diverse
group of people. In such promising areas as packaging inks
and adhesives, for example, we are promoting development
and marketing based on a regionally unified productstrategy. Our ability to develop a cooperative production

6.5% and 7.0%—far lower than the double-digit growth seen
in recent years.
What this tells us is that although overall growth is slackening,
there are latent needs. If we can capture these needs, the
PRC is still a market in which robust growth can be expected.
,QRWKHUZRUGVZHEHOLHYHWKDWWKHUHDUHVLJQL¿FDQWEXVLQHVV
opportunities.
Even though economic growth in the PRC is slower than in
UHFHQW\HDUVLQWKLVWKH¿UVW\HDURI',&ZHDUHZRUNLQJto cultivate promising high-end markets for which DIC Grouptechnologies are suited in line with two key DIC Groupsustainability themes, namely, Business Models that Respondto Social Imperatives and New Technology Development andValue Creation. Through these efforts, we aim to contribute to

We are committed to meeting our customers’ needs, while neverlosing sight of the business essentials, which are reliable, ontime delivery; consistent product quality; dependable service;and groundbreaking innovation.
Sun Chemical’s Pledge: As the world’s top producer of inks,
pigments and coatings, we will lead our industry by understanding
and minimizing the life cycle footprint of our products’ impact on
the environment.

Sun Chemical Corporation

Under DIC108, we will press ahead with these andother strategies with the aim of positioning DIC GroupFRPSDQLHVLQWKH$VLD±3DFL¿FUHJLRQDVDPRGHOIRUWKH
global DIC Group.

DIC Asia Paciﬁc Pte Ltd

the achievement of DIC108’s targets.
With DIC108, the DIC Group’s focus has shifted from
improving its financial health to pursuing opportunities forstrategic investments that will support growth. Accordingly, we
will explore chances to expand investments, including M&A
activities, in both the PRC and adjacent areas. To this end, we
will work to reinforce our local marketing function.
Going forward, DIC (China) will work to identify businesses
that enable us to further strengthen our marketing capabilities,
focus resources on those businesses and concentrate efforts
on locking in demand.

DIC (China ) Co., Ltd.

DIC Report 2016 ̲12

Providing Value in Five Business Segments

The DIC Group’s
Business Portfolio

The DIC Group has capitalized on its capabilities in organic pigments and synthetic resins, the principal material for printing inks, tobuild a broad portfolio. Today, the Group classifies its products in five business segments: Printing Inks, Fine Chemicals, Polymers,
Compounds and Application Materials. Through its Advanced Technology Sales Administrative Division., Life & Living Sales Administrative Division
and Packaging & Graphics Sales Administrative Division—three sales administrative divisions organized in line with three key market
categories—and its affiliated companies, the DIC Group works to provide products that respond to the needs of society and its customers.

Markets
Electronics

Automobiles
EnergyPackaging
Digitalprinting

Livingenvironments

Coatings

Infrastructurebuilding

Application
Materials

Business segments

Printing Inks

Fine
Chemicals

Polymers

Compounds

The DIC Group’s
Basic Technologies
The DIC Group strives
constantly to contribute toa materially and spirituallyaffluent society through thedevelopment and provisionof environment-friendly
technologies and products. To
this end, the Group is leveraging
its basic technologies in theareas of optics and color,organic molecular design,
polymer design, dispersion
and applicability assessment(coating, printing and molding)to promote the development of
products in key target markets.

13_ DIC Report 2016

高分子
Polymer
designDispersion

設計

Organic
有機分子
molecular
設計design

Basic technologies

Applicability
応用評価
assessment
（塗工
・印刷・

成形加工）
(Coating/printing/molding)

光学・色彩
Opticsandcolor

A Stable Business Since the Start

Printing Inks

Printing Inks Product DivisionThis segment focuses on printing inks, DIC’s mainstay businesssince its establishment. A global market leader, DIC boasts anextensive product portfolio ranging from publishing inks to inks andadhesives for packaging, enabling it to respond to the needs ofcustomers worldwide.

Offset inks
Gravure inks
Flexo inks
Can coatings
News inks
Packaging adhesives
Printing supplies

Outstanding color reproduction andreduced energy consumption

Ensuring safety for food and theenvironment

DAICURE HR series(High-sensitivity UV-curable offset inks)

FINART series(Gravure inks for food packaging)

As well as suitability for use with low-power
ultraviolet ( UV ) printers, DIC’s innovative
DAICURE HR high-sensitivity UV-curable
offset inks deliver outstanding color
reproduction, thus responding to the needsof customers seeking to switch from printing
with oil-based inks to UV-curable printing.

FINART gravure inks combine superb image
quality and suitability for high-speed printing,as well as respond to demand for the
reduction of solvents in food packaging,
thereby contributing to food safety and theenvironment.

DIC Report 2016 ̲14

Fine Chemicals

Optronics Materials andOther High-Value-Added Products

Pigments Product Division
Organic pigments
Special effect pigments
Metal carboxylates
Sulphur chemicals (lubricant additives)

Liquid Crystal Materials Product DivisionThin-ﬁlm transistor (TFT) LCs
Supertwisted nematic (STN) LCs

A marked increase in brightness andreduced LCD energy consumption

Responding to the evolutionof LCDs

G58 series(Green pigments for color filters)

TFT LCs

In manufacturing the G58 series of green
pigments, DIC defied conventional wisdom
by using zinc, rather than copper, as thecentral metal, which achieves a marked
increase in brightness and reduces energy
consumed by the liquid crystal display (LCD).

15̲ DIC Report 2016

Products in this segment include a wide variety of materials
indispensable to digital devices, including LC materials and organic
pigments for color filters, which are expected to drive growth for DIC
in the years ahead.

The production of TFT LCs demands
advanced technological expertise. DIC is
one of only a few companies in the world
with such expertise. DIC’s technologies
ensure it is able to provide products that
respond to demands for faster response
times and greater long-term reliability.

DIC’s Second Core Business

Polymers

Polymers Product Division

Capitalizing on DIC’s world-class technologies and know-how, thissegment provides synthetic resins and resin-related products to awide array of industries.

Environment-friendly next-generation
adhesives that respond to diverse needs
TYFORCE series(Moisture-curing hot melt adhesives)
This series of solvent-free adhesives
delivers superb production efficiency andbonding strength. These resins have been
adopted for a wide range of applications,
including building materials, apparel andelectronic components.

Waterborne resins
UV-curable resins
Acrylic resins
Methacrylate resins
Epoxy resins
Phenolic resins
Fluorochemicals

Polyurethane resins
Polyester resins
Plasticizers
Unsaturated polyester resins
Polystyrene
Alkylphenols

Technologies that facilitate the controlof light for applications ranging
from display cases to optical fibers
DEFENSA OP series(Low-refractive index UV-curable resins)
Used for optical fiber cladding and opticalcoatings, the DEFENSA OP series’
low-refractive index UV-curable resins help
improve the performance of optical fibers
and the brightness of display cases.

DIC Report 2016 ̲16

Compounds

New Value Created through Dispersion
and Compounding Technologies

Liquid Compounds Product Division
Inkjet inks
Fiber and textile colorants and artiﬁcial leather colorants
High-performance coatings and adhesive materials
Coatings for optical ﬁlms

Solid Compounds Product Division
PPS compounds
High-performance compounds
Plastic colorants
High-performance optical materials

This segment leverages resin and pigment dispersion and compounding technologies accumulated since DIC’s founding to provide
products that respond to needs in the expanding global digitalprinting, automotive and electronics markets.

Helping customers realize
outstanding color
development and gloss

17̲ DIC Report 2016

Contributing to the realization of lighter,more fuel-efficient vehicles

SunJet inkjet inks

DIC.PPS series(PPS compounds)

Advanced DIC Group pigment dispersion
technologies ensure excellent color
development and a glossy finish. With areputation for reliability, SunJet inkjet inks
enjoy popularity in markets around the world.

PPS compounds in the DIC.PPS series maintainexcellent rigidity, strength and electrical insulating
properties, as a result of which these compounds
have found application in components for hybrid,electric and other environment-friendly vehicles
as an alternative to metal materials.

A Variety of Products Made Possible by
the Integration and Application of DIC Technologies

Application
Materials

Application Materials Product DivisionThis segment encompasses a diverse range of products, including
industrial adhesive tapes, hollow-fiber membranes and modules, andcoextruded multilayer films, which are made possible through the integration of proprietary coating, printing, molding and other technologies.

Enhancing waterproof
smartphone construction
DAITAC WS#84 series(Double-sided adhesive tapes forwaterproof mobile communications devices)
One of the first series of waterproof tapes to be
developed and marketed for waterproof
smartphone construction, the DAITAC WS#84
series continues to support efforts to enhance theability of smartphones to resist water ingress.

Industrial adhesive tapes
Magnetic tapes and coated sheets
Hollow-ﬁber membranes and modules
Coextruded multilayer ﬁlms
Health foods and natural colorants
Decorative boards, interior housing products andcoatings for building materials
Decorative sheets and decorative ﬁlms
Processed sheet molding compounds (SMCs) andbulk molding compounds (BMCs)
Molded plastic products

A superfood that provides abalanced wealth of nutrients
DIC Spirulina
Spirulina is an edible blue-green algae richin vitamins, minerals and ß-Carotene, as
well as protein. Spirulina’s nutritional value
and popularity as an ingredient not only inhealth foods but also for culinary
applications has earned it a reputation asa superfood.

DIC Report 2016 ̲18

Special Feature

Product Development for a Sustainable Society

Developing Innovative Products that Address Key Social Imperatives and$GGUHVVLQJLVVXHVUHODWHGWRFOLPDWHFKDQJHHQHUJ\IRRGVHFXULW\DQGGLVDVWHUSUHYHQWLRQLVRQHRIWKHPRVWVLJQL¿FDQWFKDOOHQJHVIDFLQJWKHZRUOGWRGD\7KH',&*URXSLV

1Color solutions for
FXVWRPHUVLQÀHOGV
ranging from outdoor
signage to textiles

Inkjet Inks for
Industrial and
Office Printers

Social Imperative

Reduce environmental
impact throughon-demand printing
To date, the printing of outdoor display graphics, banners, product packaging,
printed materials in the workplace, textiles and other items has used considerable
resources and energy and generated waste, thus exerting a negative impact
on the environment. In recent years, the emergence of digital printers has fueled
the popularity of on-demand printing, which allows items to be printed in thequantity desired at the time needed. The development and supply of inks optimallysuited to different applications are thus essential to drive the further expansion of
on-demand printing and reduce the environmental impact of on-demand printing.

Aqueous inkjet inks that help reduce
environmental impact for a variety ofindustries

DIC’s
Response

On-demand inkjet printers use a variety of different inks. Aqueous inkjet inks, which
are formulated with pigments dispersed in water and exert less of an impact on theenvironment than solvent-based products, have earned particularly high praise.
However, obtaining a stable dispersion of pigments in water has traditionally been
problematic, making it difficult to realize excellent color gamut and gloss. DIC has
capitalized on its proprietary pigment dispersion technologies to resolve its challenge.
Conventional textile printing requires the production of printing plates for each
design, making this a laborious, costly and time-consuming process that uses

a significant amount of electricity and generates a considerable amount ofwastewater. In contrast, inkjet printers eliminate the need for plates, facilitating
ORZYROXPHGLYHUVL¿HGSULQWLQJDQGUHGXFLQJHOHFWULFLW\XVH0RUHRYHUSLJPHQWHG
inks can be used to print on diverse types of fabric, substantially reducing
wastewater generated.
The DIC Group’s inkjet inks lineup also includes UV-curable inks that are
FRPSDWLEOHZLWKLQNMHWSULQWHUVWKDWXVHHQHUJ\HI¿FLHQWOLJKWHPLWWLQJGLRGH /(' light sources and solvent-based inks made with environment-friendly solvents.

Pigmented ink droplets
KEY PERSONOf DIC

Dispersion of microencapsulated pigment particles in water
Encapsulating pigment particles in resin

Clear resin
General Manager,
Dispersion Technical Division 2

Satoshi Idemura＋
Resin dispersed in water

Dispersion

Extraction

We are providing integrated solutions thatleverage DIC Group capabilities and meetadvanced requirements.

Pigment particles

Inkjet inks must meet the complicated requirements of printerand printhead manufacturers and as such we need to control
the properties of picoliter-level droplets. Our competitive edgeUHÀHFWVRXUDELOLW\WRSURYLGHLQWHJUDWHGVROXWLRQVWKDWOHYHUDJH
the DIC Group’s pigment dispersion and stabilization processes,
as well as to design raw materials such as synthetic resins.
,QGXVWULDODQGRI¿FHSULQWHUVDUHUDSLGO\LPSURYLQJLQWHUPVRIVSHHG
and accuracy, providing an opportunity for us to extend value by
optimizing our products, an effort that is supported by the evolution ofresins and pigments and advanced evaluation techniques.

マイクロカプセル化顔料
TEM画像19̲ DIC Report 2016

SocialImperatives

Energyconservation

3Rs (“Reduce,
Reuse, Recycle”)

Aging
society

Safety /Peace of mind

HumanrightsHighly informationoriented society

QR Code
accessRespond to the Expectations of Stakeholders

WEB Related information

leveraging the power of chemistry to provide products that can help resolve such issues and further drive social sustainability.

2+ROORZÀEHUPHPEUDQHV
that facilitate the removal ofgas from and dissolving ofgas into liquids

http://www.dic-global.com/
en/csr/special

Bubbles in inkjet inks
can hamper ejection from
nozzles

Social Imperative

Eliminate gases dissolved inliquids, which can adversely
impact various processes

SEPAREL ®
Hollow-Fiber
Membranes andMembrane Modules

Rust caused by oxygencan degrade plumbing
pipes

Water pipes play a key role in a truly diverse range of situations, but gases dissolved in water can have many negative
consequences. One of these is rust, formed when iron and oxygen react in the presence of water, which can shorten
the useful life of plumbing pipes. Oxygen can be removed with chemicals, but some contain substances that areharmful to the environment. Another consequence of oxygen in liquid is the formation of bubbles. Bubbles forming
in inkjet inks can hamper ejection from nozzles, damaging print quality, while in semiconductor fabrication bubbles
in photoresists and developers can impede the formation of circuit patterns, causing defects. As these examples
indicate, there is a clear need for effective ways to remove gases dissolved in liquids, thereby reducing relatedresource and energy losses, as well as waste arising from product quality issues attributable thereto.

Hollow-fiber membranes for degasification(removal of gases dissolved in liquid) andaeration (dissolving of gases into liquid)

DIC’s
Response,QWKHODWHV',&GHYHORSHGDSURSULHWDU\KROORZ¿EHUPHPEUDQHPDGHIURPDSRO\ROH¿Q7KLVPHPEUDQHZKLFKFRQVLVWVRIDSRURXV
inner supporting layer and a nonporous outer layer called a skin layer, making it compatible with highly permeable liquids, also boasts high
JDVSHUPHDELOLW\DQGXOWUD¿QHKROORZ¿EHUVZKLFKPD[LPL]HPHPEUDQHVXUIDFHLQVPDOOVSDFHV2QHRIWKHHDUOLHVWDSSOLFDWLRQVIRU',&¶V
KROORZ¿EHUPHPEUDQHVZDVR[\JHQDWRUVZKLFKDUHXVHGWRGLVVROYHR[\JHQLQWRDQGUHPRYHFDUERQGLR[LGHIURPEORRGGXULQJVXUJLFDO
SURFHGXUHV6XEVHTXHQWO\',&FRPPHUFLDOL]HGWKHVHPHPEUDQHVLQKROORZ¿EHUPHPEUDQHPRGXOHVXVHVIRUZKLFKLQFOXGHUHPRYLQJ
R[\JHQIURPSLSHVLQSRZHUSODQWVIDFWRULHVRI¿FHEXLOGLQJVDQGFRQGRPLQLXPFRPSOH[HVWRSURWHFWDJDLQVWUXVWWKHUHE\SURORQJLQJWKHLU
useful lives. These modules are also used to prevent the formation of bubbles. In semiconductor fabrication, this minimizes the incidenceof product defects and reduces waste, while in inkjet printing it prevents problems with ejection from nozzles.
',&¶VSURSULHWDU\KROORZ¿EHUPHPEUDQHIDFLOLWDWHVWKHVHSDUDWLRQDQGUHPRYDORIJDVRQO\ GHJDVL¿FDWLRQ
180‒240µm

30‒40µm

Liquid and gas flows
LiquidVacuumHollow-fiber
Gas molecules membranes
Dissolution
Gas molecules
LiquidDegasified liquid

Dissolved O2
Ultrafine hollow fibers

Skin layer
・ Thin (approx. 1 μm), witha high permeability rate

Degassed O2
Hollow
fibers・ Compatible withhighly permeable liquids

Comfortable
lifestyles

KEY PERSONOf DIC
Head Researcher,
Polymer Processing Technical Group 5,
Polymer Processing Technical Division

Shigeaki Fujieda
Degassed N2

Dissolved N2
Gas flow

Achieves gas
removal toa parts-per-billion
level

SEPAREL ® membrane modules are
EXQGOHVRIKROORZÀEHUPHPEUDQHVReduction of substancesthat harm the environment

Reduction of CO 2
emissionsImprovementof convenience

Food loss
reduction

The secret is an exclusive dual-layer
structure with a skin layer.
All aspects of the SEPAREL ® membrane business—including
production of hollow f ibers, development of modules,
commercialization and module production—are centered at
the Chiba Plant. These products are a prime example of thecomprehensive capabilities of the DIC Group. With recent
advances in the speed and precision of semiconductor
fabrication systems and printers and a commensurate increase
LQGHJDVL¿FDWLRQOHYHOVFXVWRPHUV¶TXDOLW\H[SHFWDWLRQVKDYH
become increasingly exacting. The higher the requirements forthe removal of gases dissolved in liquid or for the dissolving ofgases into liquid, the greater the value realized by SEPAREL ®
modules.

Better productquality

DIC Report 2016 ̲20

3Rich color and superior
safety contribute to thecosmetics industry

Pigments for
Cosmetics

DIC’s
Response

Social Imperative

Develop color materials that meet thestringent safety and quality management
standards required for use in cosmetics
0DQ\SHRSOHXVHFRVPHWLFVEHFDXVHGRLQJVRPDNHVWKHPIHHOPRUHDWWUDFWLYHDQGFRQ¿GHQW&RVPHWLFV
DOVREULQJULFKFRORUWRHYHU\GD\OLIH7KHTXDOLW\RIFRVPHWLFVLVLQÀXHQFHGE\PXOWLSOHIDFWRUVLQFOXGLQJthe materials used to impart color. Color materials for cosmetics can be of mineral, vegetable or synthetic
origin. Many contain heavy metals, which in excessive concentrations can damage the skin. For
this reason, many countries and regions have established safety standards for cosmetics. With populationand economic growth in emerging markets expected to drive up demand for cosmetics in the years ahead,cosmetics manufacturers worldwide are coming under increasing pressure to adhere to pertinent laws andregulations and guarantee the safety of their products.

Superior color materials that comply
with safety standards, laws and regulations
in countries and regions around the world

DIC Group company Sun Chemical Corporation has 50-plus years experience in manufacturingorganic and inorganic pigments for cosmetics and is recognized as being among the world’s leading
manufacturers of such products. The company’s portfolio also includes pearlescent, metallic andother effect pigments. Sun Chemical products are the choice of cosmetics manufacturers worldwide,UHÀHFWLQJVROLGPDUNVJLYHQLWVIRUPLGDEOHSURGXFWGHYHORSPHQWFDSDELOLWLHVSURGXFWLRQWHFKQRORJLHVand knowledge of color, as well as its ability to comply swiftly with laws and regulations, as well aswith safety standards, in different geographic markets. Known for its rigorous standards, particularly
JRYHUQLQJRUJDQLFSLJPHQWVWKH86)RRGDQG'UXJ$GPLQLVWUDWLRQ )'$ KDVFHUWLILHGDOO6XQ
Chemical organic pigments for cosmetics. Sun Chemical’s organic pigments for cosmetics are FDAFHUWL¿HG
Sun Chemical became a subsidiary of DIC in 1986. Since then, the two companies have built a
VWURQJDOOLDQFHLQPXOWLSOH¿HOGV5HFRJQL]LQJWKHLPSRUWDQFHRIVWUHQJWKHQLQJFROODERUDWLRQZLWKSun Chemical and further maximizing synergies to achieve further growth, in January 2016 DIC
established a dedicated department to handle pigments for cosmetics within its new Pigments
Product Division. Under its new medium-term management plan, DIC108, the DIC Group has
positioned pigments for cosmetics as a key growth business. Going forward, the Group will
work to expand its pigments for cosmetics business in Japan, as well as advance into untappedmarkets in emerging economies and elsewhere.
KEY PERSONOf DIC
Pigments Sales Department 1,
Pigments Product Division,
Fine Chemicals Segment

Mari Samejima
I am working to expand sales channels
with the aim of “Making it Colorful.”
The DIC Group’s brand slogan is “Color & Comfort.” One of thecorporate values outlined in our new medium-term management
SODQ',&LV³0DNLQJLW&RORUIXO´%RWKRIWKHVHSKUDVHVreally resonate with the value provided by color materials forcosmetics. Pigments for cosmetics may strike some people as
DQXQXVXDO¿WIRU',&EXWWKHVHSLJPHQWVDUHXVHGLQSURGXFWVfor consumers, so enhancing recognition of the Sun Chemical
brand name by expanding sales channels will also encourage
familiarity with the DIC name.

21̲ DIC Report 2016

Sun Chemical’s Lineup of Pigments for Cosmetics
SunCROMA ®
Boasting a full portfolio of organic and inorganic
SLJPHQWV6XQ&520$LVZLGHO\DFFHSWHGDV
the color standard for the cosmetics industry.
6XQ&520$SLJPHQWVDOVRFRPSO\ZLWKSHUWLQHQWODZVDQGUHJXODWLRQVLQWKH8QLWHG6WDWHV(XURSH
and other countries and regions around the world.

SunPURO®
The SunPURO line’s extremely
low heavy metal content levels
KDYHHDUQHGLWFHUWL¿FDWLRQXQGHU
)UDQFH¶V(&2&(57 FRQVLGHUHG
the global standard for ingredientsused in natural cosmetics.

Soft-Tex®
Proprietary technologies giveSoft-Tex pigments a highly uniform
particle size and easy dispersion.

INTENZA ®
7KH ,17(1=$ OLQH FRPSULVHV
hybrid pigments combining FDAcertified organic colorants andpearlescent effect pigments.

%DVHGLQ)UDQFH(&2&(57LVDQLQGHSHQGHQWFHUWL¿FDWLRQDXWKRULW\WKDWLQVSHFWVDQG
FHUWL¿HVSURGXFWVWKDWFRPSO\ZLWK(XURSHDQVWDQGDUGVIRURUJDQLFSURGXFWVTopicQR Code accessWEB

Related information

http://www.dic-global.com/en/csr/special/topics.html

Aquacure Inkjet Inks Technology Delivers the Positive Print
Characteristics of a Water-Based Ink
Today’s core inkjet technologies—aqueous, solvent and UV-curable—perform perfectly well across awide variety of products and applications. However, there are fundamental pros and cons with eachchemistry. Being water-based, aqueous inks have strong environmental credentials, provide a wide
color gamut, offer excellent resolution and are relatively inexpensive. However, printheads require
increased maintenance, substrates need to be coated, which can cost more, and aqueous inks
require lamination in order to be suitable for outdoor use.
UV-curable inks have superb media flexibility, offer high durability and can adhere to both uncoated stocks and otherchallenging materials such as vinyl, glass and wood. They cure almost instantly, enhancing image quality, reducing
energy consumption and improving productivity. On the downside, UV-curable inks have a limited color gamut, thestructured ink film produces a noticeably raised finish, and they need greater care in handling and transportation.
Solvent inks produce exceptionally durable finishes that are ideal for demanding outdoor applications. Nonetheless,
WKHYRODWLOHRUJDQLFFRPSRXQGV 92&V UHOHDVHGDVWKHVROYHQWHYDSRUDWHVUHTXLUHDYHQWLODWHGHQYLURQPHQWPDNLQJ
these inks the least environment-friendly option. They are also difficult to handle in a single-pass printer architecture,owing to the rate of evaporation at elevated temperatures and the inability to exercise inactive nozzles during printing.
In an ideal world, inkjet users want a solution that combines the characteristics of aqueous and UV-curable inks whileat the same time providing consistent high-quality output with an extended color gamut. Such a hybrid composition
would deliver odor-free prints, provide excellent adhesion to a wide range of media, and offer enhanced resistance andhigh flexibility. It would also be environment-friendly, with a reduced film weight, and have low migration properties.
SocialImperative

Sun Chemical addressed this imperative with the introduction of Aquacure, a functional aqueous technology
combining water-based and UV-curable solutions. Comprised of 60–90% water, Aquacure inkjet inks
deliver the positive print characteristics of a water-based ink, including low film weights, lack of odor, and an
impeccable health, safety and environmental profile. The UV-curable component provides the ink’s versatility
and durability, as well as ensuring reliable jetting through the printhead. Aquacure technology delivers adhesion to a broad range of
media, offers superb flexibility and has an extensive color gamut. The technology delivers significant advantages in the graphics sector,
but can also achieve migration limits and compliance for primary food packaging in combination with the appropriate press design.
Unlike 100% solids UV-curable inkjet inks, Aquacure can produce low film weights similar to those in conventional print processes.
Sun Chemical’s
Response

VOICE from the DIC Group

Business Director, Digital, Sun Chemical Corporation Peter Saunders

Aquacure provides a look and feel that converters and brand owners demand.
This newly developed aqueous chemistry offers functionality that digital printers have wanted from water-based
WHFKQRORJ\ DQG ZLOO KDYH D SRVLWLYH LPSDFW RQ ERWK ZHOOHVWDEOLVKHG DQG HPHUJLQJ LQNMHW PDUNHW VHJPHQWV 0RVW
importantly, Aquacure uses between 70–80% renewable materials, is hazard- and odor-free, and is compliant for low
migration packaging. Aquacure provides a look and feel that converters and brand owners demand. To date, tests
involving key manufacturers have proven to be highly successful.
DIC Report 2016 ̲22

Corporate GovernanceWEB

Related information

http://www.dic-global.com/en/about/governance.html

45&RGHDFFHVV

Basic Approach to Corporate Governance
The DIC Group has prepared a Policy on Corporate Governance in which it discloses its basic approach to corporate governance as follows:7KH',&*URXSLGHQWL¿HVWKHSXUSRVHRIFRUSRUDWHJRYHUQDQFHDVEHLQJWRHQVXUHHIIHFWLYHGHFLVLRQPDNLQJSHUWDLQLQJWRLWVPDQDJHPHQWSROLF\RIDFKLHYLQJVXVWDLQDEOHFRUSRUDWHJURZWKDQGH[SDQVLRQWKURXJKVRXQGDQGHI¿FLHQWPDQDJHPHQWZKLOHDWWKHVDPHWLPHJXDUDQWHHLQJWKHDSSURSULDWHPRQLWRULQJDQGDVVHVVPHQWRIDQGPRWLYDWLRQIRUPDQDJHPHQW¶VH[HFXWLRQRIEXVLQHVVDFWLYLWLHV:LWKWKHDLPRIDFKLHYLQJDKLJKHUOHYHORIWUXVWRQWKH
SDUWRIVKDUHKROGHUVFXVWRPHUVDQGRWKHUVWDNHKROGHUVDQGHQKDQFLQJFRUSRUDWHYDOXHWKH',&*URXSDOVRSURPRWHVRQJRLQJPHDVXUHVWRUHLQIRUFHLWV
PDQDJHPHQWV\VWHPDQGHQVXUHHIIHFWLYHPRQLWRULQJWKHUHRI

Outline of Policy on Corporate Governance (Chapter Headings)❶ Basic approach to corporate goveranance❷ Securing the rights and equal treatment of shareholders❸ Appopriate cooperation with stakeholders other than shareholders❹ Ensuring appropriate information disclosure and transparency❺ Responsibilities of the Board❻ Dialogue with shareholders❼ Other

WEB http://www.dic-global.com/en/about/pdf/governance_en.pdf
2XWOLQHRI3ROLF\RQ&RUSRUDWH*RYHUQDQFH &KDSWHU+HDGLQJV 

Corporate Governance System$ FRPSDQ\ ZLWK LQWHUQDO DXGLWRUV ',& PDLQWDLQV D %RDUG RI 'LUHFWRUV DQG D %RDUG RI &RUSRUDWH $XGLWRUV $V ZHOO DV
DSSRLQWLQJ WZR KLJKO\ LQGHSHQGHQW RXWVLGH GLUHFWRUV ',& KDV LQVWLWXWHG DQ H[HFXWLYH RIILFHU V\VWHP D PRYH DLPHG DW
VHSDUDWLQJGHFLVLRQPDNLQJDQGLPSOHPHQWDWLRQWKHUHE\DFFHOHUDWLQJEXVLQHVVH[HFXWLRQDQGDWFODULI\LQJUHVSRQVLELOLWLHV',&DOVRKDVD1RPLQDWLRQ&RPPLWWHHDQGD5HPXQHUDWLRQ&RPPLWWHHZKLFKLQFOXGHWKHWZRRXWVLGHGLUHFWRUVWRHQVXUH
REMHFWLYLW\LQWKHQRPLQDWLRQDQGVHOHFWLRQRIDQGGHWHUPLQLQJUHPXQHUDWLRQIRUGLUHFWRUVDQGH[HFXWLYHRIILFHUV7KHIRXU
PHPEHU%RDUGRI&RUSRUDWH$XGLWRUVZKLFKLQFOXGHVWZRLQGLYLGXDOV²RQHDODZ\HUDQGWKHRWKHUDQDFFRXQWLQJVFKRODU²DVRXWVLGHDXGLWRUVOLDLVHVZLWKWKHDFFRXQWLQJDXGLWRUVDQGWKHLQWHUQDODXGLWLQJGHSDUWPHQW

System of Internal Control
7RHQVXUHIDLUEXVLQHVVSUDFWLFHVWKH%RDUGRI'LUHFWRUVKDVVHWDEDVLFSROLF\RQLQWHUQDOFRQWUROWKDWHQFRPSDVVHVDPRQJRWKHUVFRPSOLDQFHZLWKODZVDQGUHJXODWLRQVDQG',&¶V$UWLFOHVRI,QFRUSRUDWLRQULVNDQGLQIRUPDWLRQPDQDJHPHQWDQGWKH
FUHDWLRQRIV\VWHPVWRIRVWHUEXVLQHVVHIILFLHQF\6SHFLILFLQLWLDWLYHVWRGDWHKDYHLQFOXGHGIRUPXODWLQJDFRGHRIEXVLQHVVFRQGXFWWKDWHQFRPSDVVHVDZKLVWOHEORZLQJV\VWHPYDULRXVULVNPDQDJHPHQWLQLWLDWLYHVLPSOHPHQWHGE\WKH6XVWDLQDELOLW\&RPPLWWHHWKHHVWDEOLVKPHQWRIYDULRXVLQWHUQDOUXOHVDQGPRQLWRULQJ LQWHUQDOFRQWURODXGLWVDQGHQYLURQPHQWDQGVDIHW\DXGLWV 7KH%RDUGRI'LUHFWRUVDOVRKHDUVDQQXDOUHSRUWVRQPHDVXUHVLPSOHPHQWHGLQOLQHZLWKWKHSROLF\RQLQWHUQDOFRQWURO

Corporate Governance Organization

Meeting of Shareholders
Appointment

Board of Directors
Nomination Committee
President and CEO

Remuneration Committee
Sustainability Committee

Internal Control Department
Internal audit

23̲ DIC Report 2016

Appointment

Audit
Accounting
audit

Board of Corporate Auditors

Accounting auditors

Executive Committee

Product divisions, Marketing Division, Production Administrative Division,
Technical Administrative Division, Corporate R&D Division,
headquarters’ administrative divisions, offices

Group companies

Overview of Materiality Analysis
7KH',&*URXSFRQGXFWVLWVRSHUDWLRQVLQOLQHZLWKLWVPLVVLRQ³7KURXJKFRQVWDQWLQQRYDWLRQWKH',&*URXSVWULYHVWRFUHDWHHQKDQFHGYDOXHDQG
WRFRQWULEXWHWRVXVWDLQDEOHGHYHORSPHQWIRULWVFXVWRPHUVDQGVRFLHW\´,QUHFHQW\HDUVWKH*URXSKDVVHHQDUDSLGLQFUHDVHLQUHTXHVWVIURPDEURDGUDQJHRIVWDNHKROGHUVLQFOXGLQJVKDUHKROGHUVDQGLQVWLWXWLRQDOLQYHVWRUVUHJDUGLQJGLVFORVXUHRI¿QDQFLDODQGQRQ¿QDQFLDOLQIRUPDWLRQ
6WDNHKROGHUVWRGD\SODFHSDUWLFXODUHPSKDVLVRQLQIRUPDWLRQWKDWPHDVXUHVSHUIRUPDQFHIURPWKHSHUVSHFWLYHRIFULWLFDO(6*UHODWHGLVVXHV$FFRUGLQJO\WKH*URXSKDVDEVWUDFWHGDQGDQDO\]HGPDWHULDOLVVXHVWKDWLVLVVXHVZLWKSRWHQWLDOWRDIIHFWLWVSHUIRUPDQFHDQGKDVLGHQWL¿HG
WKRVHRISDUWLFXODUVLJQL¿FDQFH
,QDGGLWLRQWRHQVXULQJSURSHUSULRULWL]DWLRQWKH',&*URXSLVWDNLQJVWHSVWRHIIHFWLYHO\DQGHI¿FLHQWO\DGGUHVVWKHVHLVVXHV*XLGHGE\LWV',&PHGLXPWHUPPDQDJHPHQWSODQZKLFKFRPPHQFHGLQ¿VFDO\HDUDQGE\LWVORQJWHUPJURZWKVFHQDULRWKH*URXSZLOOFRQWLQXHZRUNLQJWRHQVXUHWKDWWKHVHHIIRUWVDUHEHQH¿FLDOWRWKHPDQDJHPHQWRILWVEXVLQHVVHVDQGWKDWWKH\UHVSRQGWRWKHH[SHFWDWLRQVRIVWDNHKROGHUV

(1) Materiality Analysis Process1

Abstraction of Issues',&DEVWUDFWHGLVVXHVRISDUWLFXODUVLJQL¿FDQFHIRUWKH',&*URXSEDVHGRQWKH*OREDO5HSRUWLQJ,QLWLDWLYH *5, ¶V*6XVWDLQDELOLW\
5HSRUWLQJ*XLGHOLQHVLWVRZQVXVWDLQDELOLW\WKHPHV *URXSVXVWDLQDELOLW\LQLWLDWLYHVWDNHLQWRDFFRXQW,62 DQGLVVXHVGHOLQHDWHGLQ',&7KH',&:$<RUDGGHGE\6XVWDLQDELOLW\&RPPLWWHHPHPEHUVZKLFKLWGLYLGHGLQWRWKUHHJURXSLQJV(QYLURQPHQW ( VRFLHW\ 6 DQGJRYHUQDQFH LQFOXGLQJHFRQRPLFLVVXHV  * 

2Materiality Analysis

6XVWDLQDELOLW\&RPPLWWHHPHPEHUVDQGKHDGVRIEXVLQHVVXQLWVWKDWVSHDUKHDGWKHLPSOHPHQWDWLRQRILQLWLDWLYHVUHODWHGWRVXVWDLQDELOLW\WKHPHVSOD\HGDFHQWUDOUROHLQDVVHVVLQJWKHPDWHULDOLW\RIWKHDEVWUDFWHGLVVXHV7KLVDVVHVVPHQWZDVFDUULHGRXW
IURPWKHWZLQSHUVSHFWLYHVRILPSRUWDQFHWR',&*URXSEXVLQHVVHVDQGLPSRUWDQFHWRVWDNHKROGHUV%DVHGRQWKLVDQGKDYLQJUHYLHZHGWKHUHVXOWVRIDVVHVVPHQWVFRQGXFWHGE\VHQLRUPDQDJHPHQWDW*URXSEXVLQHVVXQLWVLQWKH8QLWHG6WDWHV$VLDDQG
HOVHZKHUHWKH&RPSDQ\GHWHUPLQHGPDWHULDOLW\IRUWKH',&*URXS
(a) Material importance to DIC Group businesses',&DVVHVVHGLVVXHVZLWKWKHSRWHQWLDOIRUFXUUHQWRUIXWXUHLPSDFWRQ',&DVDQRUJDQL]DWLRQJLYLQJFRQVLGHUDWLRQWRERWKSRWHQWLDOULVNVDQGEXVLQHVVRSSRUWXQLWLHV(b) Material importance to stakeholders
7KH',&*URXSUHFRJQL]HV¿YHNH\VWDNHKROGHUJURXSV FXVWRPHUVVXSSOLHUVORFDOFRPPXQLWLHVDQGVRFLHW\HPSOR\HHVDQG
LQYHVWRUV $VVHVVPHQWVORRNHGDWOHYHORILQWHUHVWRQWKHSDUWRIVWDNHKROGHUVDQGSRWHQWLDOLPSDFW:LWKWKHDLPRIDFFXUDWHO\LGHQWLI\LQJFKDOOHQJHVIRULQGLYLGXDOEXVLQHVVXQLWV',&EHJDQE\DQDO\]LQJPDWHULDOLW\IRURQHRILWV
FRUHEXVLQHVVHV7KH&RPSDQ\LVFXUUHQWO\FRQGXFWLQJPDWHULDOLW\DQDO\VLVIRUWKH*URXSDVDZKROH

(2) The DIC Group’s Materiality Matrix',&KDVRUJDQL]HGWKHLVVXHVDEVWUDFWHGDQGDVVHVVHGWKURXJKWKHSURFHVVRXWOLQHGDERYHLQWR',&JHQHUDOPDWHULDOLW\
FDWHJRULHVDVVKRZQLQWKHWDEOHEHORZ7KH&RPSDQ\SODQVWRSHULRGLFDOO\UHYLHZDQGDPHQGLWVDQDO\VLVRIPDWHULDOLW\ZKLOH
LQFRUSRUDWLQJWKHRSLQLRQVRIH[WHUQDOVWDNHKROGHUVDQGZLOOUHSRUWRQWKHSURJUHVVRIWKHVHDFWLYLWLHVDVQHFHVVDU\LQWKLVGRFXPHQWEHJLQQLQJLQ¿VFDO\HDU

The DIC Group’s 22 Materiality Categories
Environment (E)Ɣ Practical application of measures to reduce environmental impact
Ɣ Contribution to the realization of a low-carbon society
Ɣ Promotion of products and services that contribute to environmental protection

Society (S)Ɣ Ability to foster and strengthen global human resourcesƔ Promotion of diversity
Ɣ Respect for human rights
Ɣ Efforts to address needs engendered by an aging society and falling birthrates

Ɣ Promotion of occupational health and safety and consumer healthƔ Contributing to colorful and comfortable lifestyles
Ɣ Harmony with and contribution to society
Ɣ Enhancement of brand strength/reputation (evaluation)

Ɣ Response to the growth of digital businessesƔ Response to economic globalization/efforts to reinforce governanceƔ Promotion of supply chain management
Ɣ Improvement of quality management capabilities
Ɣ Efforts to increase productivity
Ɣ Efforts to reinforce marketingƔ Provision of solutions
Ɣ Innovation through compoundingƔ Efforts to strengthen global technology development capabilitiesƔ Creation of next-generation businesses
Ɣ Promotion of open innovation

Governance(including economic issues) (G)DIC Report 2016 ̲24

DIC Group Sustainability Initiatives
Basic Themes

Sustainability Report
The DIC Group’s sustainability framework comprises 11 key themes. The Grouphas introduced a system whereby these are categorized as basic themes, themesthat demonstrate unique capabilities and themes that combine elements of theprevious two classifications, and clarified the positioning thereof. Each fiscal year,
the Group formulates targets and activity plans for each of these themes.

Themes that Demonstrate
Unique Capabilities

Core and CategorySpecific Themes

Sustainability
Framework
and Themes

Themes that demonstrateunique capabilities (A)Business models that respond to social imperatives
New technology development and value creation
Harmony with the community and social contributions
Communication with stakeholders

Core and category-specific themes
Themes that combine
elements of (A) and (B)Environment, safety and health
Quality
Human resources management
Sustainable procurement

Basicthemes (B)Compliance
Risk management
Information security

(

)

P43
P44
P45
P47
P29
P38
P39
P42

P26
P26
P28

Expanding the Scopeof Sustainability
Initiatives

To guide its efforts to promote sustainability as an integral part of its business activities, the DIC Group formulates
theme-specific medium-term targets in line with its basic sustainability policy and creates annual Group activity
plans. The Marketing Division, the Technical Administrative Division and individual product divisions, sites andoverseas and domestic DIC Group companies are then charged with pursuing effective sustainability programs byformulating their own annual activity plans, ensuring that the Group’s basic sustainability policy and targets permeate
their organizations and labor forces and linking sustainability activities to business targets.

System for Promoting
Sustainability

The DIC Group’s system for promoting sustainability centers on the Sustainability
Committee, which answers directly to the president and CEO and is tasked with
reporting on the status of sustainability themes, as well as with proposing policies
and programs for advancing sustainability and deliberating on related matters as
a vital component of corporate management.

żFormulates Groupwide targets and activity plans
ĺ Submits to the Board of DirectorsżEvaluates sustainability initiatives

Board of Directors

Sustainability Committee

President and CEO

Corporate Communications
DepartmentżPromotes sustainability(coordinates and supports initiatives)
ż$GYDQFHVDZDUHQHVVRIVXVWDLQDELOLW\żServes as secretariat for the Sustainability Committee

25̲ DIC Report 2016

As of January 2016

Sales administrative divisions, product divisions,
Production Administrative Division, Technical Administrative Division,
Corporate R&D Division, headquarters’ administrative divisions, offices,
domestic and overseas DIC Group companies

Sustainability themesToward Fair and Transparent
Corporate Activities

Related information

WEB

Basic Themes

Compliance

http://www.dic-global.com/en/csr/
philosophy/management/compliance.html

The DIC Group Code of Business Conduct
The DIC Group completed the DIC Group Code of Business Conduct in July 2014. The code not only mandates compliance with national laws andinternational rules but also presents 10 principles essential to the professional conduct of DIC Group employees. The DIC Group Code of BusinessConduct has since been translated into 25 different languages to ensure that DIC Group employees worldwide share the Group’s values and commit
themselves to doing what is right, as well as to acting with common sense and an understanding of individual responsibilities, in all aspects of their work.
',&*URXS&RGHRI%XVLQHVV&RQGXFW WEB http://www.dic-global.com/en/csr/pdf/code_of_business_conduct_en.pdf

Initiatives to Promote Compliance,QDGGLWLRQWRWKH',&*URXS&RGHRI%XVLQHVV&RQGXFWWKH*URXSSURPRWHVFRPSOLDQFHWKURXJKWKHIROORZLQJLQLWLDWLYHV
❶ Provision of training focused on legal issues to improve compliance awareness for employees at point of hire, when promoted and before
overseas transfers❷ $SSRLQWPHQWRIFRPSOLDQFHRI¿FHUVDWDOOUHJLRQDOKHDGTXDUWHUV²',&&RUSRUDWLRQ -DSDQ 6XQ&KHPLFDO&RUSRUDWLRQ WKH$PHULFDVDQG
(XURSH ',& &KLQD &R/WG WKH35& DQG',&$VLD3DFL¿F3WH/WG $VLDDQG2FHDQLD ²WRVSHDUKHDGJOREDOFRPSOLDQFHHIIRUWVThe DIC Group vows that it will not violate the principles of the DIC Group Code of Business Conduct, even if such a violation would appear to
SUR¿WWKH*URXS$VDFRUSRUDWHFLWL]HQWKH*URXSDOVRSOHGJHVWRUHVSHFWVRFLDOQRUPVDQGDFWLQDVRXQGDQGVRFLDOO\DFFHSWDEOHPDQQHU

Establishing and Operating a Whistle-Blowing System
The DIC Group has established a whistle-blowing system through which one can directly report an issue or question regarding compliance to
WKHGLYLVLRQUHVSRQVLEOHIRUFRPSOLDQFH6LQFH¿VFDO\HDUWKH*URXSKDVPDLQWDLQHGZKLVWOHEORZLQJKRWOLQHVWKDWFDQKDQGOHUHSRUWVLQWKH
languages of more than 160 countries. The Group has also devised strict rules under this system to protect whistle-blowers from retaliation, and is
working to ensure the system functions in a proper manner.
When a report is received, the Group responds swiftly and appropriately, giving due consideration for pertinent laws while also incorporatinginternal and external opinions, to promptly identify and correct misconduct and other compliance violations as quickly as possible.

Risk Management

Related informationWEB

http://www.dic-global.com/en/csr/
Reducing Business Risks andphilosophy/management/bcm.html
Preventing the Recurrence of Incidents

Basic Approach to Risk Management
7KH',&*URXSXQGHUWDNHVULVNPDQDJHPHQWLQLWLDWLYHVZLWKWKHDLPRIDSSURSULDWHO\DQGÀH[LEO\DGGUHVVLQJFKDQJHVLQLWVRSHUDWLQJHQYLURQPHQWDQG
WKHGLYHUVL¿FDWLRQRIULVNVDQGRIVZLIWO\PLWLJDWLQJGDPDJH7KH*URXSUHFRJQL]HVULVNVLQWKUHHSULQFLSDOFDWHJRULHVH[WHUQDOO\FDXVHGULVNVWKDWDUH
beyond its control, corporate risks that can be prevented and business risks that should be handled by the relevant division/departments. The Risk
Management Subcommittee, which is a subordinate committee of the Sustainability Committee, oversees management of these risk responses.

DIC Report 2016 ̲26

Themes that Demonstrate
Unique Capabilities

Compliance in the DIC Group encompasses not only obeying laws but also acting in a manner that is in keeping with social norms and the
expectations of customers, communities and other stakeholders. With the aim of ensuring sustainable growth for businesses that are both fair
DQGWUDQVSDUHQW',&IRUPXODWHGWKH',&*URXS&RGHRI%XVLQHVV&RQGXFWDXQL¿HGVHWRIJXLGHOLQHVWKHDGKHUHQFHWRZKLFKLWFRQVLGHUVWR
be the foundation of compliance. DIC compels all DIC Group employees to conduct themselves in accordance with the code.

Core and CategorySpecific Themes

Basic Approach to ComplianceRisk Management Policy
7KH',&*URXS¿UVWLQWURGXFHGULVNPDQDJHPHQWLQLWLDWLYHVLQE\FUHDWLQJWKH&RPSOLDQFH&RPPLWWHHDQGVHWWLQJXSUHSRUWLQJ
channels. Following the establishment of the Risk Management Subcommittee in May 2012, the Group undertook initiatives aimed
DWUHVSRQGLQJWRVHULRXVQDWXUDOGLVDVWHUVDQGSURPRWLQJEXVLQHVVFRQWLQXLW\PDQDJHPHQW %&0 6LQFH¿VFDO\HDUWKH5LVN
Management Subcommittee has focused on establishing a risk management policy and a risk management system, efforts that aredesigned to further enhance corporate value Groupwide. In a bid to ensure the effective and sustainable implementation of initiatives,in January 2015 the Group introduced a newly formulated risk management policy.

Risk Management System
In the process of formulating the risk management policy, the Risk Management Subcommittee established the DIC Group Risk Management System. This
V\VWHPVWDUWVE\LGHQWLI\LQJNH\ULVNVWKURXJKDTXHVWLRQQDLUHVXVWDLQDEO\UHGXFLQJULVNVE\HQFRXUDJLQJXVHRIWKHSODQ±GR±FKHFN±DFW 3'&$ F\FOHDQGKDYLQJmanagement drive improvements and assessments. The Group has positioned fiscal years 2014 and 2015 as the first phase of Groupwide risk management
initiatives predicated on the new system. Administrative divisions in DIC’s corporate headquarters in Japan, which together constitute the Risk Management
Subcommittee, and other divisions/departments, which are organized vertically according to function, will determine departments to oversee key risks and deploy
countermeasures by collaborating with other relevant departments.
Having commenced risk management initiatives in Japan, DIC is expanding the focus of such efforts while at the same time promoting awareness of its basic risk
management policy and the risk management system across the global DIC Group.
5LVN0DQDJHPHQW&RQÀJXUDWLRQ

December SULRU\HDU : $ULVNVXUYH\RISURGXFWGLYLVLRQJHQHUDOPDQDJHUVDQGRWKHUH[HFXWLYHVLVFRQGXFWHG
Risk questionnaires are distributed to directors
January: Ļ7KH5LVN0DQDJHPHQWSubcommittee creates a risk map
February: The subcommittee determines priority risks and risk ownershipĻ5LVNRZQHUVIRUPXODWHUHVSRQVHPHDVXUHVMarch: $OLVWRIUHVSRQVHPHDVXUHVLVSUHSDUHG
DQH[SODQDWLRQRIWKHOLVWLVSURYLGHGWRWKH6XVWDLQDELOLW\&RPPLWWHH

1

Framework forconstruction andmaintenance ofsystem2

3
Production of risk
PDQDJHPHQWSODQ

PLAN
5LVNPDQDJHPHQWSROLF\
Risk management system
Risk management organization,
UXOHVDQGPDQXDOVNovember: The Risk Management Subcommittee assesses theeffectiveness of response measures

4
Management of
risks

DO

5
Assessment ofrisk management
performance

6
Adjustment andimprovement of risk
management system

CHECK

February – November:,QGLYLGXDOUHVSRQVHPHDVXUHVDUHLPSOHPHQWHG E\ULVNRZQHUVManagement
review

ACT
December: $OLVWRIWKHUHVXOWVRIUHVSRQVHPHDVXUHVLVSUHSDUHG(submitted by the Risk Management Subcommittee to the6XVWDLQDELOLW\&RPPLWWHH

BCM
The DIC Group accounts for all risks with the potential to interrupt business continuity through BCM. These risks include natural disasters such as large earthquakes
and floods; influenza and other pandemics; explosions, fires, leaks and other plant accidents; and major corporate scandals. The Group comprehensively estimates
the probability of each risk and its impact on management, prioritizing response measures for more significant risks.
In Japan, the Group deploys ongoing natural disaster response measures. These include maintaining headquarters functions and task force framework, support
PHDVXUHVIRUGLVDVWHUVWULFNHQDUHDVDQGSURGXFLQJDQGUHQHZLQJEXVLQHVVFRQWLQXLW\SODQV %&3V IRUHDFKNH\SURGXFW

Reinforcing Governance at Subsidiaries
The DIC Group endeavors to reinforce governance at subsidiaries, and has constructed an organizational operations support framework to ensure effective
management of subsidiaries as well as foster their sustainable growth. The Group also facilitates and maintains internal controls as a risk management system thatmatches business scale, characteristics and other features distinctive to each subsidiary.

VOICE from the DIC GroupWe are advancing BCP initiatives by holding response simulation meetings.
)RUDORQJWLPHWKH6DLWDPD3ODQWZDVWKH*URXS¶VRQO\IDFLOLW\SURGXFLQJ/&V,Q1RYHPEHUZHHVWDEOLVKHGDVHFRQG/&SURGXFWLRQIDFLOLW\LQ4LQJGDRLQ
WKH35&WRDFFRPPRGDWHEXVLQHVVJOREDOL]DWLRQDQGLQFUHDVHG%&3UHTXLUHPHQWVIURPFXVWRPHUV:KLOHWKHVHSODQWVQRUPDOO\SURGXFH/&VZLWKGLIIHUHQWSURGXFW
numbers, they are in fact mutually interchangeable as their facilities are basically the same. We resolved to fully harness the capabilities of the two facilities by
UROOLQJRXW%&3DFWLYLWLHVDWWKH4LQJGDR3ODQWEHJLQQLQJLQ¿VFDO\HDU/RFDOXQGHUVWDQGLQJRI%&3ZDVLQLWLDOO\YHU\ORZEXWZHFUHDWHGDPDQXDOEDVHGRQ
the one in use at the Saitama Plant, heeding advice that what is important is to keep anticipating risks and considering effective ways to address them. We are
HQGHDYRULQJWRHPEHG%&3DFWLYLWLHVDVSDUWRIWKHFXOWXUHDWWKH4LQJGDR3ODQWE\FRQGXFWLQJUHJXODUPHHWLQJVWRVLPXODWHDGGUHVVLQJLQGLYLGXDOULVNVManager in charge of global production, Liquid Crystal Material Supply Department, Saitama Plant Takumi Yanagida

27̲ DIC Report 2016

Basic Approach to Information Security
The DIC Group has positioned information security as a
key management priority, and established a Basic Policy on
Information Security, which is founded on its recognition that
protecting information assets that belong to or are managed
by the Group is essential to its ability to conduct business.
In line with this policy, the Group formulated and deployedconfidential information management regulations, andinformation management guidelines. These were prepared toensure that directors and employees properly use the Group’s
information assets in the course of business and appropriately
handle confidential information. The Group will pursue
continued improvement by conducting internal audits andconfirming current issues to identify risks.

Basic ThemesWEB

http://www.dic-global.com/en/csr/
philosophy/management/security.html

Presentations
for employees

Measures tocombat software
vulnerabilities

Further
improvements

Computervirus measures

Cloud computing
responses

Basic Policy on Information Security
Basic policy
Confidential information management regulations
Preparation of
response measures
Information management guidelines

Themes that Demonstrate
Unique Capabilities

Initiatives to Ensure
Information Security

Related information

Core and CategorySpecific Themes

Information Security

Implementation proceduresInternal audits

Globally Maintaining and Enhancing Information Security
The DIC Group’s regional headquarters for the Asia–Pacific region and Greater China, which are located, respectively, in
6LQJDSRUHDQGLQWKH35&DUHVSHDUKHDGLQJWKHGHSOR\PHQWRIFRQ¿GHQWLDOLQIRUPDWLRQPDQDJHPHQWUHJXODWLRQVDQGLQIRUPDWLRQmanagement guidelines and developing information management systems. In Europe and the United States, the DIC Group isreinforcing information security by sharing IT infrastructure risks, while in Japan the Group is updating rules to address security
threats arising from cloud computing, smart devices* and other emerging technologies, and intends to continue revising rules inlight of changing work practices and other developments attributable to the progress of digitization. Preparations are also under
way to deploy an e-learning program regarding the information management guidelines Groupwide.
* “Smart device” is a generic term for information devices other than PCs, mainframe computers, workstations and other conventional computing platforms.

Safeguarding Information Security Environments in Asia and Oceania,Q¿VFDO\HDUWKH',&*URXSEHJDQEXLOGLQJDXQL¿HGVHFXULW\V\VWHPDFURVV$VLDDQG2FHDQLDZLWKWKHDLPRI
among others, combating computer viruses and software vulnerabilities. Through these and other efforts, the Group
continues working to safeguard information by reinforcing information infrastructure.

VOICE from the DIC GroupOur efforts focus on enhancing information security in Southeast Asia and Oceania.
I help enhance IT environments in Southeast Asia and Oceania, including maintaining and improving information security,
consolidating IT infrastructure and further aligning and expanding the operational and maintenance structure of our SAP system.
Because we are in charge of overseeing subsidiaries in the region, we sought to deploy confidential information management
regulations, as well as information management guidelines, among regional subsidiaries. As a regional headquarters thatcoordinates 16 subsidiaries in 10 countries with diverse cultures and customs, we will continue working to improve information
security by, among others, unifying security measures in the region.
Regional Chief Information Oﬃcer, DIC Asia Paciﬁc Pte Ltd

Hidefumi Ito

DIC Report 2016 ̲28

Environment, Safety and Health (ESH)

Related information

Toward the Achievement of a
Sustainable SocietyWEB

http://www.dic-global.com/en/
csr/environment/

Promoting Responsible Care
Basic Philosophy
As a company that manufactures and sells chemical substances, DIC sets standardized safety regulations
for ESH initiatives. The Company is working to exceed regulatory standards and fully disclose results.
Annual measures augment its core policy.

,Q¿VFDO\HDUWKH',&*URXSHQJDJHGLQ5HVSRQVLEOH
Care initiatives based on the following plan.
7KH',&*URXS·V5HVSRQVLEOH&DUHDFWLYLW\SODQIRUÀVFDO
● Occupational health and safety/disaster prevention

In line with the DIC Group’s ultimate objective, which remains theachievement of “ZERO accidents,” set target for reducing the incidence ofoccupational accidents for fiscal year 2015 at on a regional basis (Japan,
Sun Chemical Group, Greater China, Asia–Pacific region) and implement
related initiatives● Environmental protection

In line with the DIC Group’s goal of reducing its impact on the environment, settargets for and implement initiatives aimed at reducing environmental impact on a
UHJLRQDOEDVLV -DSDQ6XQ&KHPLFDO*URXS*UHDWHU&KLQD$VLD±3DFL¿Fregion)● Safety in logistics

Promote the provision of information pertinent to the safe transport ofchemical substances● Chemical substance and product safety

Provide stakeholders with information to facilitate the appropriate handlingof products throughout their life cycles

Framework for Promoting Responsible Care

(DFK\HDUWKH',&*URXSGH¿QHVSULRULW\LVVXHVWRDGGUHVVand uses the PDCA cycle in voluntary initiatives at theGroup company, plant and research laboratory levels.
The Responsible Care Department provides support forthese initiatives to advance their progress and conducts
regular audits to ensure compliance and improve safety andenvironmental performance.
Framework for Promoting Responsible Care
Product divisions

Initiatives in Fiscal Year 2015

DIC is a signatory to the International
Council of Chemical Associations’
Responsible Care Global Charter● Dialogue with stakeholders● Management system

Make use of the plan–do–check–act (PDCA) cycle in prompting Responsible
Care initiatives
Cultivate human resources to fill ESH and quality-related positions● ComplianceTechnical Administrative Division
Production Administrative Division

Persons in charge of
Responsible Care

Production and R&D(plants and R&D centers)
Safety and Environment
Group

Implementation

Report on the results of the DIC Group’s Responsible Care initiatives via the
DIC Report

Responsible Care Department
ESH audits

Responsible Care auditing framework

Comply with environmental and ESH and quality-related laws, rules and agreement
Responsible Care implementation framework

Responsible Care Auditing
Basic Approach
5HVSRQVLEOH&DUH'HSDUWPHQWVSHFLDOLVWVZLWKH[SHUWLVHH[SHULHQFHDQGDXGLWLQJFDSDELOLWLHVUHJXODUO\FROODERUDWHZLWKH[HFXWLYHRI¿FHUVWR
audit Responsible Care initiatives at Group companies. DIC’s president and CEO and the executive vice president take part in ESH audits
at many sites each year to enhance Responsible Care performance across the DIC Group.
2YHUVHDV5HVSRQVLEOH&DUH'HSDUWPHQWVSHFLDOLVWVDQGUHJLRQDO(6+RI¿FHUVDVVHVVWKHSURJUHVVRIHIIRUWVDWSURGXFWLRQVLWHVDQG
work together to enhance the effectiveness of Responsible Care initiatives.

Audits in Fiscal Year 2015
,Q¿VFDO\HDUWKH*URXSFRQGXFWHG5HVSRQVLEOH&DUHDXGLWVDW',&VLWHVDQGGRPHVWLF
Group companies, as well as at 14 companies in Greater China, three in the Republic of Korea
52. DQGLQWKH$VLD±3DFL¿FUHJLRQ$VZHOODVDVVHVVLQJWKHRSHUDWLRQDOVWDWXVRIPDQDJHPHQW
V\VWHPVWKHDXGLWVLQFOXGHGDJUHDWO\LPSURYHGVHOIDVVHVVPHQWFKHFNOLVWWKDWFRYHUHGTXHVWLRQV
for seven items in environment, health and occupational safety.
29̲ DIC Report 2016

DIC Graphics Chia Lung Corp.

Basic Themes

Occupational Safety and Health,Security and Disaster Prevention

Occupational Safety and Health
Basic Approach
As a responsible member of society and a company that manufactures and sells chemical substances, the DIC Group recognizes that proper consideration for
ESH is fundamental to its operations and works to incorporate this awareness into all of its business activities. Guided by this philosophy, the DIC Group analyzes
accidents and communicates information thus derived, based on which it undertakes risk assessment with the aim of ensuring occupational safety and health.

Making Regional Data Visible with Monthly Reports

The DIC Group conducts diverse businesses in accordance with a wide range of national and regional legal systems, working environments
and practices, factors that cause the risk of accidents and disasters to vary. Accordingly, the Group has established appropriate benchmarks
IRUHDFKUHJLRQ,Q¿VFDO\HDU',&HVWDEOLVKHGDV\VWHPWRDJJUHJDWHPRQWKO\RFFXSDWLRQDOVDIHW\DQGKHDOWKGDWDIRUHDFKFRPSDQ\
LQ*UHDWHU&KLQDDQGWKH$VLD±3DFL¿FUHJLRQDVDPRQWKO\UHSRUWPDNLQJLWHDVLHUWRVZLIWO\LGHQWLI\DQGFRPSDUHZRUNLQJKRXUVQXPEHURI
accidents leading to workdays lost, occupational accident frequency rate and other monthly data and to further enhance regional performances.

2

Reducing Risks

By understanding potential risks in production processes, facilities and devices, and the hazards of chemical substances, the DIC
Group systematically prepared initiatives to prevent accidents and occupational injuries. The Group also creates risk assessment
JXLGHOLQHVZKHQGHSOR\LQJQHZRUPRGL¿HGHTXLSPHQWRUFKDQJLQJSURGXFWLRQSURFHVVHVWRFRQWLQXHULVNUHGXFWLRQDFWLYLWLHV

3

Training Skilled Safety Personnel to Predict Risks

The DIC Group regularly trains skilled safety personnel on how to handle chemical substances, using materials such as its Principles of Safe Conduct andEnvironment and Safety Guidelines for the R&D Department, as well as safety data sheets (SDSs) and its Occupational Accident Case Studies database. In recent
years, the Group has focused on a risk prediction training technique called Kiken Yochi Training (KYT) (“hazard prediction training”) and on hands-on safety training.

4

Promoting Hands-On Safety Training

Hands-on safety training is an effective alternative to classroom-basedlearning that uses actual equipment to simulate potential risks in theworkplace, thereby heightening employees’ awareness of the importance
RISURSHUVDIHW\,Q-DSDQWKH',&*URXSLQLWLDWHGDIXOOÀHGJHGKDQGVRQ
safety training program in 2012 and in 2014 opened the Saitama HandsOn Safety Training Center, a facility boasting equipment that allows thesimulation of an array of accidents, with the goal of fostering skilled safety
personnel by incorporating training in new employee and rank-specifictraining programs. In fiscal year 2015, the Group downsized six typesof hands-on equipment for a mobile initiative. Overseas, the Group has
worked to establish permanent training facilities and introduce hands-on
VDIHW\WUDLQLQJHTXLSPHQWLQWKH35&DQGWKH$VLD±3DFL¿FUHJLRQA downsized hands-on machinefor static generation and control

Experiencing being caught in a chucking apparatus

VOICE from the DIC Group
More visible data should increase awareness.
I expect operations in Greater China and the Asia–Pacific region to objectively evaluate their strengths andweaknesses from the monthly reports so that they can improve themselves and bolster their activities. The
occupational accident frequency rate (number of workdays lost per million work hours) is an important benchmark
for the DIC Group. More visible data will likely translate into results by motivating each company into action.
Collaboration between DIC and regional Group companies should ultimately enhance overall Responsible CareDFWLYLWLHVE\UHÀHFWLQJEDURPHWHUVIURPPRUHVSHFL¿FLPSURYHPHQWHIIRUWV
Senior Manager, Responsible Care Department Masashi Hayakawa

DIC Report 2016 ̲30

Themes that Demonstrate
Unique Capabilities

1

Core and CategorySpecific Themes

Principal Initiatives in Fiscal Year 2015

5

+ROGLQJ6DIHW\2IÀFHUV·&RQIHUHQFHVLQ*UHDWHU&KLQDDQGWKH$VLD²3DFLÀF5HJLRQ',&XQGHUWDNHVVXSSRUWLQLWLDWLYHVDWRYHUVHDV*URXSFRPSDQLHVE\KROGLQJVDIHW\RI¿FHUV¶FRQIHUHQFHVLQ*UHDWHU&KLQDDQGWKH$VLD±3DFL¿FUHJLRQ)URP¿VFDO\HDU
DIC began holding these conferences every year instead of biannually. Gatherings were convened in Guangzhou in March, Vietnam in October and Qingdao in December.
Status of Occupational Accidents,Q¿VFDO\HDUWKHQXPEHURIRFFXSDWLRQDODFFLGHQWVDW',&DQG',&*URXSFRPSDQLHV
LQ-DSDQLQFUHDVHGE\RQHHDFK VLQFH¿VFDO\HDUWKH',&*URXSKDVGHSOR\HGWKH
DART rate*, a common indicator used in various countries, with the aim of improving theeffectiveness of its safety initiatives). There was one fatal accident at a DIC Group unit
overseas. The Group will continue to promote occupational safety and health initiatives
going forward with the aim of preventing the occurrence of occupational accidents.
* The Days Away, Restrictions and Transfers (DART) rate is calculated as N/EH x 200,000.
(N = total days away from work. EH = total annual hours worked by all employees. The
200,000 hours in the formula represents the equivalent of 100 employees working 40
hours per week for 50 weeks per year.):RUNGD\V/RVW'XHWR2FFXSDWLRQDO$FFLGHQWV )LVFDO<HDU²)LVFDO<HDUDIC

DIC Group (Japan) DIC Group (Global)

FY2013 FY2014 FY2015 FY2013 FY2014 FY2015 FY2013 FY2014 FY2015

Number of
workdays lost

84

80

Frequency rate 0.338 0.000 0.181 0.622 0.429 0.556--

2.133 2.375

Severity rate 0.001 0.000 0.005 0.018 0.006 0.018--

DART rate

2

3.5

0

0.1

1

1.3

6

16.0

4

5

9.6

6.2

--

88

--

17.8 20.3 21.8

Occupational Health

7KH',&*URXSKDQGOHVDEURDGUDQJHRIFKHPLFDOVLQFOXGLQJVSHFL¿HGFKHPLFDOVXEVWDQFHVDQGRUJDQLFVROYHQWV7RVDIHJXDUGWKHKHDOWKRIHPSOR\HHVKDQGOLQJWKHVHFKHPLFDOVWKH*URXSUHJXODUO\FRQGXFWVKHDOWKFKHFNXSVDQGHQYLURQPHQWDOPHDVXUHPHQWVDQGPRGL¿HVDQGLPSURYHV
working conditions as needed. Industrial physicians, health supervisors and other experts inspect workplaces to manage employee health.

Security and Disaster Prevention
Basic Approach
In addition to establishing a security management system, the DIC Group operates and maintains its facilities in line with pertinent laws andregulations. The Group regularly conducts emergency drills and has earthquake and other response measures in place.

Facility Safety Assessment
1

Production facility
safety information

Assessment Procedures

DIC Group production facilities have an array of equipment, ranging from units where chemical
reactions are conducted to machine presses and other processing equipment. When modifying
processes or upgrading/replacing equipment, the Group assesses safety at every stage, fromSURFHVVGHVLJQDQGFRQVWUXFWLRQWKURXJKWRRSHUDWLRQPDLQWHQDQFHDQG¿QDOGLVSRVDO,Q¿VFDO
year 2015, DIC revised risk assessment guidelines for machinery and equipment to encourage
greater understanding and prepared educational materials to prevent static electricity accidents.

2

Conceptual Illustration of DIC’s Safety Infrastructure

Safe design
Process risk
management

Operation

MaintenanceManagementof change

Construction

Disaster and accident
predictions and responses

Education

Accident and Disaster Analysis and Timely Information

DIC collects and compiles information on internal and external accidents, disasters and problems into its Occupational Accident Case
Studies and Accident Case Studies databases. After identifying the causes of accidents or problems and establishing points to be checked,
the Company incorporates database information into safety education for DIC and DIC Group companies in Japan and overseas.

3

Initiatives to Enhance Safety Competency',&LQWURGXFHGDVDIHW\DVVHVVPHQWV\VWHPLQ¿VFDO\HDUDVDPHDQVRIREMHFWLYHO\HYDOXDWLQJDQGHQKDQFLQJLWVVDIHW\FDSDELOLWLHV7KLVV\VWHPZDVdeveloped by the Japan Society for Safety Engineering (JSSE) and engineers in the petrochemicals industry as a common benchmark and is currently used
E\WKHPDMRUFRUSRUDWLRQVLQ-DSDQWKDWMRLQWO\HVWDEOLVKHGWKH6DIHW\&RPSHWHQF\(QKDQFHPHQW&HQWHU,Q¿VFDO\HDUWKH6DIHW\&RPSHWHQF\Enhancement Center formulated a system for evaluating processing sites and a prioritized version of the system. DIC participated in this effort.

Safety Management in Logistics
7KH',&*URXSFRPPLVVLRQVORJLVWLFV¿UPVWRWUDQVSRUWLWVFKHPLFDOSURGXFWV,Q-DSDQWKHVH¿UPVXVHFRQWDLQHUVWKDWFRPSO\ZLWKWKH)LUH6HUYLFH$FW
and other transportation laws, as well as with related United Nations’ standards. The Group supplies information needed to display labels complying with
GHS*1 as well as provides SDSs and other documentation to ensure safe shipping in Japan and overseas. DIC endeavors to maintain and enhance safety byrequiring transport personnel to carry Yellow Cards*2 to ensure proper responses in the event of an emergency.
*+6*OREDOO\+DUPRQL]HG6\VWHPRI&ODVVL¿FDWLRQDQG/DEHOOLQJRI&KHPLFDOV*2 Yellow Cards are part of activities recommended by the Japan Chemical Industry Association (JCIA). The cards contain information about the right actions to take if an accident occurs. It provides contact details to ensureSURSHUUHVSRQVHVE\WUDQVSRUWDWLRQFRPSDQLHV¿UH¿JKWHUVDQGSROLFHRI¿FHUVLIDQDFFLGHQWRFFXUVGXULQJWKHWUDQVSRUWRIFKHPLFDOVXEVWDQFHV7UDQVSRUWSHUVRQQHOPXVWFDUU\WKHVHFDUGVDWDOOWLPHV

31̲ DIC Report 2016❶ Undertake energy-saving initiatives Groupwide❷ Deploy effective strategies through working group activities❸ Operate energy-saving cogeneration systems (combined heat and power generating facilities)❹ Employ energy from renewable resources (biomass, wind power and solar power) at suitable sites❺ Extend energy-saving initiatives to DIC Group companies overseas

Framework for Promoting Energy-Saving Initiatives

DIC and DIC Group companies in Japan have established energy-saving promotion committees at each of their production and R&D sites. Committee activities
LQFOXGHFRQ¿UPLQJWKHSURJUHVVRILQLWLDWLYHVHQJDJLQJLQGLVFXVVLRQVDQGFRQGXFWLQJSDWUROV',&KDVDOVRVHWXSDQHQHUJ\VDYLQJZRUNLQJJURXSFRPSULVLQJ
members chosen from each production facility that fosters the exchange of information, research pertaining to new items and the Groupwide implementation ofeffective measures. This combination of site- and Group-level initiatives forms the framework under which the DIC Group works to reduce CO2 emissions.
DIC Group companies overseas promote a wide range of independent energy-saving initiatives. The Production Management Department provides support on
multiple fronts, including the deployment of management systems and the training of employees.

Principal Initiatives in Fiscal Year 2015
1

Energy Consumption and CO Emissions by the Global DIC Group

7KH',&*URXSYLHZVHQHUJ\FRQVXPSWLRQSHUPHWULFWRQQHRISURGXFWLRQDVDQLPSRUWDQWPHDVXUHRILWVHQHUJ\HI¿FLHQF\,QOLQHZLWKDGHFOLQHLQSURGXFWLRQYROXPHIURPD\HDUHDUOLHUWKH*URXSUHGXFHGHQHUJ\FRQVXPSWLRQLQ¿VFDO\HDUE\FDOFXODWHGLQNLOROLWHUVRIFUXGHRLO7KLVDPRXQWHGWRNLOROLWHUVIURPNLOROLWHUVD\HDUHDUOLHU(QHUJ\FRQVXPSWLRQSHUXQLWRISURGXFWLRQURVHWROLWHUVPHWULFWRQQHIURPOLWHUVPHWULFWRQQHLQ¿VFDO\HDU7KHFKDQJHVUHÀHFWHGORZHUYROXPHVIRUSULQWLQJLQNVDQGSRO\PHUVDQGKLJKHUSURGXFWLRQYROXPHVIRUSLJPHQWVDQG336SURGXFWV$QRWKHUIDFWRUZDVLQFUHDVHGHQHUJ\FRQVXPSWLRQQRWFRQWULEXWLQJWRSURGXFWLRQQRWDEO\IURPWKHH[SDQVLRQRIÀRRUVSDFHLQFOHDQURRPVWRVXSSRUWTXDOLW\LPSURYHPHQWHIIRUWV&22
HPLVVLRQVZHUHPHWULFWRQQHVGRZQIURPPHWULFWRQQHVLQ¿VFDO\HDU
,Q¿VFDO\HDUWKH*URXSEHJDQLGHQWLI\LQJDQGLQFRUSRUDWLQJHQHUJ\FRQVXPSWLRQDQG&22HPLVVLRQVDW*URXSRI¿FHVDQGUHVHDUFKIDFLOLWLHVLQ-DSDQ&DOFXODWHGRQWKHVDPHEDVLVDVLQ¿VFDO\HDUHQHUJ\FRQVXPSWLRQSHUXQLWRISURGXFWLRQE\WKH',&*URXSLQ-DSDQLQ¿VFDO\HDUZDVXSIURPWKH
previous period, while CO2HPLVVLRQVDWPHWULFWRQQHVZHUHGRZQ
Global CO(PLVVLRQVLQ)LVFDO<HDU
Declines in key indicators:
Results of energy-saving initiatives implemented by the DIC Group
Globalproduction volume

Energyconsumption

Energy consumption perunit of production- 2.0％ - 1.0％

+1.0％

Global Energy Consumption and Change in Energy Consumption per Unit of
3URGXFWLRQIURP%DVH<HDU )LVFDO<HDU
(Kiloliter crude
oil equivalent)
350,000

98

103

（％）

100

110

250,000

100

657,457
metric tonnes

657,152
metric tonnes

from fiscal year 201480

100,000
50,000

70

0

60

12
Fiscal year 2014

2

Fiscal year 2015

+1%

from
fiscal year 201490

150,000

0％

120

300,000

200,000

Down

101

13

14

15 (Fiscal year)

Energy consumption
Change in energy
consumption per unit ofproduction from base year

Note: Energy consumption per unit of production (liters per ton) is
calculated as energy consumption divided by production volume(QHUJ\6DYLQJ,QLWLDWLYHVLQ-DSDQLQ)LVFDO<HDU$OOSODQWVDQG5 'VLWHVHQGHDYRUWRFRQVHUYHHQHUJ\E\LPSOHPHQWLQJLQLWLDWLYHVDLPHGDWVDYLQJHQHUJ\LPSURYLQJWKHHI¿FLHQF\RISURGXFWLRQPHWKRGVDQG
shortening process times.
([DPSOHVLQFOXGHHPSOR\LQJKLJKO\HI¿FLHQWOLJKWLQJDQGDLUFRQGLWLRQLQJDQGPHDVXUHVWRFXWZDVWHLQWURGXFLQJHQHUJ\VDYLQJFRQWUROVRQSXPSVDQGEORZHUVXVLQJPRUHHI¿FLHQWFRPSUHVVRUVDQGLPSOHPHQWLQJPHDVXUHVWRUHGXFHSUHVVXUHORVVHVSURPRWLQJPHDVXUHVWRLPSURYHWKHSRZHUIDFWRUVRIHOHFWULFHTXLSPHQWDGRSWLQJKLJKFRHI¿FLHQWRISHUIRUPDQFH &23 FKLOOHUVDQGPHDVXUHVWRSUHYHQWFROGDQGKRWZDWHUVXSSO\ZDVWHUHGXFLQJERLOHUIXHOWKURXJKWKHUHFRYHU\RIZDVWH
KHDWDQGHQVXULQJDSSURSULDWHZDUPLQJWLPHVDQGWHPSHUDWXUHVIRUUDZPDWHULDOV,Q¿VFDO\HDUWKHVHLQLWLDWLYHVUHGXFHGHQHUJ\FRQVXPSWLRQE\NLOROLWHUV FUXGHRLOHTXLYDOHQWZLWKDQDVVRFLDWHGUHGXFWLRQLQ&22HPLVVLRQVRI
PHWULFWRQQHV HTXLYDOHQWWROLWHUGUXPVRIFUXGHRLORURIWRWDOHQHUJ\FRQVXPSWLRQE\WKH',&*URXSLQ-DSDQLQWKHSHULRGDIC Report 2016 ̲32

Core and CategorySpecific Themes

Climate change, a principal cause of which is global warming, is an increasingly pressing issue for the entire world. DIC included initiatives aimed at
UHGXFLQJJUHHQKRXVHJDVHPLVVLRQVIURPLWVSURGXFWLRQIDFLOLWLHVRI¿FHVDQGUHVHDUFKIDFLOLWLHVLQLWVDQQXDOVXVWDLQDELOLW\SROLF\IRU¿VFDO\HDU
The Company is also currently implementing initiatives to reduce its consumption of energy, and thus its emissions of CO 2.

Themes that Demonstrate
Unique Capabilities

Basic Approach

Basic Themes

Preventing Global Warming

5HVXOWVRI(QHUJ\6DYLQJ,QLWLDWLYHVLQ-DSDQLQ)LVFDO<HDU
Number of
initiatives

Reduction in energy
consumption (kl)HQHUJ\VDYLQJLQLWLDWLYHVDFFRXQWHGIRUDUHGXFWLRQLQHQHUJ\FRQVXPSWLRQHTXLYDOHQWWROLWHUGUXPVRIFUXGHRLO

Reduction in CO emissions(metric tonnes of CO)

DIC

396

1,745

4,073

LQLWLDWLYHV

Equivalent to

DIC Groupcompanies in Japan

97

760

1,520

493

2,506

5,592

12,530

Total

Reductionin energy
consumption

OLWHUGUXPVRIFUXGHRLO

Improving Yields by Expanding Use of System to Enhance the Visibility of Energy Consumption

7RRSWLPL]HWKHXVHRIHOHFWULFSRZHURQDQLQGLYLGXDOIDFLOLW\EDVLV',&GHYHORSHGDV\VWHPWKDWPHDVXUHVPRQLWRUVDQGYHUL¿HVZDVWHDQGLUUHJXODULWLHVLQ
use, thereby enhancing the visibility of energy consumption. Initially installed at the Hokuriku Plant, the system has since been rolled out at DIC sites across-DSDQ,Q¿VFDO\HDUDV\VWHPWRHQKDQFHYLVLELOLW\ZKLFKDOVRDQDO\]HVHQHUJ\FRQVXPSWLRQGXULQJGLIIHUHQWSURGXFWLRQSURFHVVHVZDVLQVWDOOHGRQWKH9&DQG%SURGXFWLRQÀRRUVRIWKH&KLED.DVKLPDDQG6DNDLSODQWVUHVSHFWLYHO\WRUHSURGXFHRSWLPXP\LHOGVIRUPDWHULDOVLQSXWV2QHRXWFRPHRIHIIRUWVWRHQKDQFHWKHYLVLELOLW\RIHQHUJ\FRQVXPSWLRQZDVDQLQFUHDVHLQWKHQXPEHURIFDWHJRULHVRI6FRSH LQZKLFK',&UHSRUWVLQGLUHFWHPLVVLRQVRI&22, from
RQH ³XSVWUHDPWUDQVSRUWDWLRQDQGGLVWULEXWLRQ´ LQ¿VFDO\HDUWRVL[ LQFOXGLQJ³FDSLWDOJRRGV´DQG³ZDVWHIURPEXVLQHVVHV´ LQ¿VFDO\HDU
6FRSHLVWKH*UHHQKRXVH*DV3URWRFRO¶VVWDQGDUGIRUFDOFXODWLQJLQGLUHFWJUHHQKRXVHJDVHPLVVLRQVUHVXOWLQJIURPSURGXFWLRQWUDQVSRUWEXVLQHVVWUDYHODQGFRPPXWLQJDPRQJRWKHUVDFURVVHQWLUHVXSSO\FKDLQV

3

Increasing Independent Electric Power Generation through Cogeneration and the Use of Renewable Energy

Cogeneration systems burn fuel to drive turbines, facilitating the production of electric
power and the recovery and reuse of waste heat (steam and hot water), thereby improving
HQHUJ\HI¿FLHQF\:LWKFRJHQHUDWLRQV\VWHPVDOUHDG\LQRSHUDWLRQDW¿YHGRPHVWLFSODQWV
(Chiba, Shiga, Saitama, Gunma and Tokyo), in autumn 2015 DIC installed a natural gas
WXUELQH±SRZHUHGFRJHQHUDWLRQV\VWHPZLWKDFDSDFLW\RIN:KDWLWV.DVKLPD3ODQWThe Kashima Plant also boasts extensive facilities that facilitate the use of energy fromUHQHZDEOHVRXUFHVLQFOXGLQJDELRPDVVERLOHU JHQHUDWLQJFDSDFLW\N:DQGPHWULF
WRQQHVRIVWHDPSHUKRXU WZRZLQGSRZHUIDFLOLWLHV HDFKZLWKDJHQHUDWLQJFDSDFLW\RI
kW) and a solar power generation facility (100 kW). By combining these facilities, DIC aims
to achieve an optimal power mix of purchased electric power, cogeneration systems and
UHQHZDEOHHQHUJ\,Q¿VFDO\HDUWKHELRPDVVERLOHU¶VRSHUDWLQJUDWHVZHUHUHGXFHGRZLQJWRPDLQWHQDQFH$VDFRQVHTXHQFHUHQHZDEOHHQHUJ\XVDJHYROXPHGHFOLQHG
IURPD\HDUHDUOLHUWRNLOROLWHUV RIWKH',&*URXS¶VHQHUJ\FRQVXPSWLRQLQ
Japan). The Group’s CO2HPLVVLRQVLQ¿VFDO\HDUWKXVGURSSHGPHWULFWRQQHV

CO Emission Reductions at Kashima Plant-DQXDU\²'HFHPEHU
Reduction attributable to use ofwood biomass energy

metric-26,227 tonnesof CO 2

Reduction attributable touse of wind power

Reduction attributable touse of solar power
metrictonnesof CO 2

-2,652 -51
metrictonnesof CO 2

ResultReduction in CO emissions-DQXDU\²'HFHPEHUNatural gas turbine–powered
cogeneration system at
the Kashima Plant

4-28,930 metric tonnesof CO

Energy Consumption and CO Emissions by the DIC Group Overseas'HVSLWH D  GHFOLQH LQ SURGXFWLRQ YROXPH DQG WKH
impacts of energy-saving initiatives based on management
by objectives (MBO), the energy consumption of DIC Group
companies overseas was unchanged. Energy consumption
SHUXQLWRISURGXFWLRQLQFUHDVHGZKLOH&22 emissions
URVHWRPHWULFWRQQHV,QOLJKWRIWKHVHUHVXOWVLQ
¿VFDO\HDU',&DQG',&*URXSFRPSDQLHVRYHUVHDVZLOO
focus more on ways to prevent global warming through more
extensive energy-saving activities, collaborating closely with
DIC’s Production Management Department. The prime factors
behind this were surging pigment production in Indonesia andhigher energy consumption per unit of production at sites inIndia, the PRC (Hainan) and Taiwan (Taipei).
33̲ DIC Report 2016

Proportional Changes in CO Emissions by Region
100%
90%
80%
70%
60%

9%
14%

10%
14%

16%
13%

18%
9%

19%
10%

37%

41%

37%

34%

33%

40%

36%

34%

39%

38%

11

12

13

14

15 (Fiscal year)

50%

PRC

40%
30%
20%

Asia –Pacific region
Europe,the United Statesand Africa
Japan

10%
0%

Number of
initiatives

RegionReduction in CO
Reduction in energy
emissionsconsumption (kl) (metric tonnes of CO)

$VLD±3DFL¿F
region

47

327

760

Greater China

22

151

337

Americas andEurope
Total

8
77

299
777

691
1,788

CO Emissions and Change from Base Year
)LVFDO<HDU
(Metric tonnes)
600,000

123
107

104

105

500,000

（％）
140
120
100

400,000+1%

fromfiscal year 2014

80
300,000
200,000
100,00060

CO2 emissions

40

Change in CO2emissionsfrom base year

20

0

12

13

14

Basic Themes

5HVXOWVRI(QHUJ\6DYLQJ,QLWLDWLYHV2YHUVHDVLQ)LVFDO<HDU

0
15 (Fiscal year)

Activities Radar Chart
Initial check (May 25, 2015)
Target line

Energy-saving promotion framework
Environmental Management Systems andEnergy Management Systems certification

Identifying consumption volume

Waste management status

Energy-saving policies,
goal action plans and reviews

Air and water
management progress andchemical substanceleakage risks

Steam and thermal
equipment performances

Electricalequipment performances

Water facilities performances

Air pressure equipment performances

PRC

In 2015, the government of the PRC enacted the revised Environmental Protection Law and Air Pollution Law to strengthen oversight over air, water, soil and noise.
The government also required plants above certain scales to disclose environmental information. It was against this backdrop that specialists from the Production
Management Department visited four sites in the south of the country to inspect environmental management systems and to follow up on issues.
Americas and Europe,Q2FWREHUWKH6XQ&KHPLFDO*URXS²ZKLFKKDVRSHUDWLRQVLQ1RUWK&HQWUDODQG6RXWK$PHULFDDQGLQ(XURSH²UROOHGRXWDQHZLQWHUQDO:HEEDVHGGDWD
collecting system called EcoTrack, which facilitates the collection and centralized monitoring of data for key sustainability metrics related to energy, water, waste and
VDIHW\DWVLWHV,QDGGLWLRQWRLQFUHDVLQJWKHWUDQVSDUHQF\RIVLWHGDWDUHODWHGWRSURGXFWLRQHQHUJ\VDYLQJLQLWLDWLYHVDQG&22 emissions, among others, EcoTrackwas designed to encourage the sharing of information and the horizontal deployment of measures, facilitating the calculation of optimum electric power and operating
WLPHVIRULQGLYLGXDOSURFHVVHV,Q(XURSHWKH6XQ&KHPLFDO*URXSFRQWLQXHGWRDFWLYHO\SURPRWHWKHXVHRIUHQHZDEOHHQHUJ\,Q¿VFDO\HDU6XQ&KHPLFDO*URXSIDFLOLWLHVLQ(XURSHXVHGN:KRIUHQHZDEOHHQHUJ\RIZKLFKZDVDFFRXQWHGIRUE\ZLQGSRZHUDQGE\VRODUSRZHU

5

Reporting to the CDP

The CDP (formerly the Carbon Disclosure Project) is a global nonprofit organization (NPO) that works on behalf of institutional investors to motivatecompanies to disclose information on initiatives to combat climate change and key environmental data. The CDP analyzes and evaluates informationUHSRUWHGE\DSSUR[LPDWHO\FRPSDQLHVZRUOGZLGHLQFOXGLQJLQ-DSDQDQGFRPPXQLFDWHVLWV¿QGLQJVWRVDLGLQVWLWXWLRQDOLQYHVWRUV',&KDVEHHQUHSRUWLQJWRWKH&'3VLQFH7KH&'3KDVUHFRJQL]HGWKH&RPSDQ\¶VFRQVLVWHQWHQYLURQPHQWDOLQLWLDWLYHVDQGLQ¿VFDO\HDUDZDUGHGLWDQRYHUDOOVFRUHRI$ SRLQWVIRUGLVFORVXUHDQGDSHUIRUPDQFHFODVVRI$ VLJQL¿FDQWO\H[FHHGLQJWKHDYHUDJHIRUFRPSDQLHVEDVHGLQ-DSDQZKLFKZDV&

VOICE from the DIC GroupWe are promoting energy conservation with the aim of achieving a balance between corporate growth and sustainability.
The adoption of the Paris Agreement at COP21 in December 2012 was a historical milestone. Under the agreement, emerging
economies are also required to implement measures to combat global warming. As a consequence, we have seen a tightening of
UHJXODWLRQVJRYHUQLQJJUHHQKRXVHJDVHPLVVLRQVLQPDQ\FRXQWULHVDQGUHJLRQV2XUQHZPHGLXPWHUPPDQDJHPHQWSODQ',&
positions “low carbonization” as a crucial theme to respond to social imperatives going forward. We will continue to implement initiatives
aimed at ensuring that employees of the global DIC Group recognize the importance of energy conservation to our ability to achieve abalance between corporate growth and sustainability and at motivating them to achieve the targets that have been set.
General Manager, Production Management Department Michio Uchiyama

DIC Report 2016 ̲34

Themes that Demonstrate
Unique Capabilities,Q0D\HQHUJ\RI¿FHUVIURPVLWHVLQFRXQWULHVLQWKH$VLD±3DFL¿FUHJLRQJDWKHUHGLQ,QGRQHVLD
for a biennial energy management conference. Efforts have also started recently in the region to checkon energy management progress and the performance of energy-consuming equipment among Group
companies. As part of these efforts, site employees
NQRZQDVHQHUJ\VDYLQJPDVWHUVFRQ¿UPHQHUJ\VDYLQJ
promotion frameworks, assess energy consumption,
formulate policies and manage goals, and evaluate theperformances of key equipment. They also create radar
charts to clarify strengths and weaknesses and thereby
Asia– Pacific energy management
encourage improvements.
conference in Jakarta, Indonesia

Core and CategorySpecific Themes$VLD²3DFLÀF5HJLRQReducing Emissions of Chemicals into the Environment
Basic Approach
As chemicals companies handle a considerably greater volume and more diverse range of chemical substances than companies in other industries, they must be extremely vigilant to prevent
discharges of such substances into the environment. DIC and DIC Group companies in Japan have worked to reduce emissions into the air, water and soil of substances designated under the
3ROOXWDQW5HOHDVHDQG7UDQVIHU5HJLVWHU 3575 VLQFH¿VFDO\HDUDQGRIVXEVWDQFHVWDUJHWHGXQGHUDYROXQWDU\VFKHPHFUHDWHGE\WKH-DSDQ&KHPLFDO,QGXVWU\$VVRFLDWLRQ -&,$ VLQFH
¿VFDO\HDU,Q¿VFDO\HDU',&LQWURGXFHG0%2DW',&*URXSFRPSDQLHVLQ*UHDWHU&KLQDDQGWKH$VLD±3DFL¿FUHJLRQZLWKWKHDLPRIIXUWKHUHQFRXUDJLQJHPLVVLRQVUHGXFWLRQV

Principal Initiatives in Fiscal Year 2015
,Q¿VFDO\HDU',&DQG',&*URXSFRPSDQLHVLQ-DSDQXVHGDQGRUSURGXFHGDQGWDUJHWHGFKHPLFDOVXEVWDQFHV UHVSHFWLYHO\LQDPRXQWVH[FHHGLQJPHWULF
tonne. Both DIC and DIC Group companies in Japan sought to meet their emissions reduction targets for PRTR-designated substances by reviewing cleaning processes forreaction tanks and local exhaust ventilation devices. However, solvent recovery equipment at three sites malfunctioned, resulting in a decrease in the equipment’s hours of
RSHUDWLRQDVDFRQVHTXHQFHRIZKLFK',&UHSRUWHGDLQFUHDVHDQG',&*URXSFRPSDQLHVUHSRUWHGDQLQFUHDVHLQHPLVVLRQVRIWKHVHVXEVWDQFHV2YHUVHDV',&*URXSFRPSDQLHVWUDFNHGHPLVVLRQVRIWDUJHWHGVXEVWDQFHVDQGUHSRUWHG¿QGLQJVWRUHJXODWRUVLQOLQHZLWKSHUWLQHQWQDWLRQDODQGUHJLRQDOUHJXODWLRQV,Q
¿VFDO\HDU',&*URXSFRPSDQLHVLQ*UHDWHU&KLQDDQGWKH$VLD±3DFL¿FUHJLRQLQWURGXFHG0%2XVLQJSHUWLQHQWQDWLRQDOWDUJHWVDQGJXLGHOLQHVWKHUHE\UHLQIRUFLQJtheir commitment to such efforts. The Group will continue working to attain both facility- and operations-related reductions targets.
FODVVFKHPLFDOVXEVWDQFHVGHVLJQDWHGE\WKH3575FKHPLFDOVXEVWDQFHV H[FOXGLQJFODVVVXEVWDQFHV DQGRQHFKHPLFDOVXEVWDQFHJURXSWDUJHWHGIRUVWXG\E\WKH-&,$ UHYLVHGGRZQIURP

Number of Targeted Chemical Substances Used and/or
3URGXFHGLQ$PRXQWV([FHHGLQJ0HWULF7RQQHLQ)LVFDO<HDUDIC

DIC Group(Japan)106

115

Environmental Emissions of Targeted Chemical Substances 6XEVWDQFHV,QFOXGLQJWKRVH'HVLJQDWHGE\WKH3575DQG2QH6XEVWDQFH*URXS LQ)LVFDO<HDU

DIC
Emissions into the air
Emissions into water
Emissions into soil

DIC Group (Japan)

metrictonnes

382 metrictonnes12 metric
tonnestonnes0 metric

208
11 metric
tonnestonnes0 metric

Reducing Environmental Impact on Air, Water and Soil

2

(Metric tonnes)
1,000

DIC

DIC Group (Japan)

00(Base year)

10

Emissions of VOCs
into the Air in Fiscal<HDU

11

12

DIC

13

14

382

208

354

189

466

555

0

261

283

310

500

745

985

In fiscal year 2015, emissions of VOCs into the air generated by DIC amounted
WRPHWULFWRQQHVDQLQFUHDVHRIIURP¿VFDO\HDUZKLOHWKRVHE\
GRPHVWLF*URXSFRPSDQLHVWRWDOHGPHWULFWRQQHVXS7KHSULQFLSDOIDFWRU
behind these increases is malfunctioning solvent recovery equipment at three sites,
which resulted in a decrease in the equipment’s hours of operation.
2YHUVHDV*URXSFRPSDQLHVLQ*UHDWHU&KLQDDQGWKH$VLD±3DFL¿FUHJLRQDUH
using MBO to promote ongoing emissions reductions. In the PRC, in particular, theGroup is updating facilities and stepping up management practices in response to
the tightening of regulations governing emissions of VOCs.

Emissions of Targeted Chemical Substances into the Air
6XEVWDQFHVDQG2QH6XEVWDQFH*URXS

309

Addressing VOC Regulations

561

1

15 (Fiscal year)

DIC Group (Japan)

+10％

+8％

IURPÀVFDO\HDU

IURPÀVFDO\HDU

Managing Water Resources

Water Withdrawn by the Global
Wastewater Discharged by the Global
The DIC Group withdraws fresh water (tap water and industrial water) for use in production Fresh',&*URXSLQ)LVFDO<HDU
',&*URXSLQ)LVFDO<HDU
processes and air conditioning and for drinking, among others. The Group also discharges 40,925,000㎥
29,396,000㎥
ZDVWHZDWHU²DIWHUSXULI\LQJLWLQOLQHZLWKLQWHUQDOVWDQGDUGVWKDWH[FHHGRI¿FLDOVWDQGDUGVLQ
WKHFRXQWULHVDQGWHUULWRULHVZKHUHLWKDVRSHUDWLRQV²LQWRULYHUVDQGRWKHUIUHVKZDWHUERGLHV
times
times
,Q¿VFDO\HDUIUHVKZDWHUZLWKGUDZQE\WKHJOREDO',&*URXSDPRXQWHGWR
WKHÀVFDO\HDUOHYHOWKHÀVFDO\HDUOHYHO
m, 1.6 times the fiscal year 2014 level, comprising withdrawals by the DIC Group in Japan
RIPXSWLPHVDQGE\*URXSFRPSDQLHVRYHUVHDVRIPDQLQFUHDVHRI:DVWHZDWHUGLVFKDUJHGE\WKHJOREDO',&*URXSLQ¿VFDO\HDUDPRXQWHGWRPWLPHVWKH¿VFDO\HDUOHYHO7KHSULQFLSDOUHDVRQEHKLQGWKHLQFUHDVHLQIUHVKZDWHUZLWKGUDZQZDVWKHIDFWWKDWGRPHVWLF*URXS
companies with abundant water rights (14,000,000 m/year) were newly included in the scope of reporting.

1.6

3

2.1

Soil and Groundwater Pollution Studies

In addition to complying strictly with Japan’s Water Pollution Control Act and Soil Contamination Countermeasures Act, the DIC Groupin Japan implements soil and groundwater surveys and countermeasures as necessary and assesses related environmental and safety risks.
35̲ DIC Report 2016

7DNLQJ¿VFDO\HDUDVWKHEDVH\HDU',&*URXSFRPSDQLHVLQ-DSDQKDYHZRUNHGWRUHGXFHVXOIXUR[LGH 62[ DQGQLWURJHQR[LGH 12[ HPLVVLRQV²NH\FDXVHVRIDFLGUDLQ²IURPERLOHUV7KHVHHIIRUWVKDYH\LHOGHGQRWHZRUWK\UHVXOWV7KH*URXSLVDOVRZRUNLQJWRUHGXFHFKHPLFDOR[\JHQGHPDQG &2' DQLQGLFDWRURIZDWHU
quality deterioration in wastewater, thereby enhancing its water quality management.
2YHUVHDV*URXSFRPSDQLHVDUHDOVRVZLWFKLQJIXHOIURPOLJKWRLOWRQDWXUDOJDVDQGUHSODFLQJOLJKWRLO±¿UHGDQGKHDY\RLO±¿UHGERLOHUVZLWKZDVWHZRRG±¿UHG
biomass boilers at sites with appropriate infrastructure.
In the area of water quality management, the Group is also working to protect the environment, including promoting the reuse of water and installing closed-loop
water recycling and wastewater treatment systems at its sites that purify water to a level that exceeds the legally mandated standard.

5

Basic Themes

Reducing SOx, NOx and COD

Complying with Regulations Governing Emissions of Dioxins

In Japan, the DIC Group monitors emissions of dioxins from waste incinerators that produce these byproducts, a group of compounds with diverse
possible isomers of varying toxicities. At present, the Group has six such facilities. Continuous efforts to reduce emissions levels have enabled
WKH*URXSWRDFKLHYHUHVXOWVWKDWJUHDWO\VXUSDVVVWDQGDUGVVSHFL¿HGLQWKH/DZ&RQFHUQLQJ6SHFLDO0HDVXUHV$JDLQVW'LR[LQV

Reducing Industrial Waste

Core and CategorySpecific Themes

4

7KH',&*URXSDLPVWRPLQLPL]HLQGXVWULDOZDVWHE\UHF\FOLQJDQGUHXVLQJPDWHULDOV6LQFH¿VFDO\HDU',&KDVEHHQLQYROYHGLQD]HUR
emissions initiative* aimed at reducing industrial waste disposed of as landfill. DIC has deployed zero emissions initiatives at DIC GroupFRPSDQLHVLQ-DSDQVLQFH¿VFDO\HDU:LWKWKHDLPRIH[SDQGLQJHIIRUWVDFURVVWKHJOREDO',&*URXSLQ¿VFDO\HDU',&EHJDQWRLQWURGXFH0%2DWRYHUVHDV*URXSFRPSDQLHV',&VXEFRQWUDFWVWKHWUHDWPHQWRILQGXVWULDOZDVWHWREHGLVSRVHGRIDVODQG¿OODQGHQVXUHVWKDWZDVWHLVSURSHUO\WUHDWHGE\SURPRWLQJVWULFWFRPSOLDQFHDQGRQVLWHFRQ¿UPDWLRQE\GHVLJQDWHGGHSDUWPHQWVDWHDFKRILWVSURGXFWLRQIDFLOLWLHV=HURHPLVVLRQVLQLWLDWLYHV',&LVSURPRWLQJLQLWLDWLYHVDLPHGDWUHGXFLQJWKHYROXPHRIZDVWHGLVSRVHGRIDVODQG¿OOE\IURPWKH¿VFDO\HDUOHYHO

Principal Initiatives in Fiscal Year 2015
5HGXFLQJ,QGXVWULDO:DVWH'LVSRVHGRIDV/DQGÀOO

7KH',&*URXSZRUNVDFWLYHO\WRUHGXFHLWVGLVSRVDORILQGXVWULDOZDVWHDVODQG¿OOE\UHF\FOLQJFLQGHUVGXVWDQGVOXGJHLQWRDPRQJRWKHUVURDGEHGPDWHULDOVDQG
UDZPDWHULDOVIRUFHPHQWXVLQJWKHUPDOUHF\FOLQJWRUHFRYHUZDVWHKHDWDQGUHGXFLQJSURGXFWLRQORVVHVE\LQFUHDVLQJ\LHOGV,Q¿VFDO\HDUWKHWRWDOYROXPHRILQGXVWULDOZDVWHGLVSRVHGRIDVODQG¿OOE\WKH',&*URXSLQ-DSDQZDVPHWULFWRQQHVWLPHVWKH¿VFDO\HDUOHYHO PHWULFWRQQHV ZLWKWKHSULQFLSDOFRQWULEXWLQJIDFWRUEHLQJWKHLQFUHDVHDWWKH.DVKLPD3ODQWUHVXOWLQJIURPDQLVVXHLQYROYLQJELRPDVVERLOHUIXHO,Q¿VFDO\HDUHDFK',&*URXSFRPSDQ\LQ-DSDQZLOOVWHSXSWKHLPSOHPHQWDWLRQRIPHDVXUHVDLPHGDWUHGXFLQJWKHWRWDOYROXPHRILQGXVWULDOZDVWHJHQHUDWHGE\LWVSURGXFWLRQIDFLOLWLHVE\IURPWKH¿VFDO\HDUOHYHODQGRUUHGXFHWKHYROXPHRILQGXVWULDOZDVWHWKH\GLVSRVHRIDVODQG¿OOZKLOHDWWKHVDPHWLPHSURPRWLQJ]HURHPLVVLRQVLQLWLDWLYHV,QGXVWULDO:DVWH*HQHUDWHGLQ)LVFDO<HDU ,QGXVWULDO:DVWH'LVSRVHGRIDV/DQGÀOO

DIC

89
232

90
207

104
158

48
106

44
86

49
80

116
139

01

04

metrictonnes

125
320

00

139

05

06

07

08

09

10

11

12

13

14

15（Fiscal year）

0（Base year）

metrictonnes

128
537

03

3,000

116
312
991

02

DIC Group (Japan)-7％

DIC Group(Japan)

DIC

537
1,288

6,000

1,560
2,296

IURPÀVFDO\HDU

4,190

-11％

9,000

3,426
4,326

-4％

IURPÀVFDO\HDU

（Metric tonnes）

5,581

DIC Group companies in Japan

7,981

DIC

DIC Group (Japan)

Initiatives Overseas

In addition to ensuring the disposal of industrial waste in a manner that complies with national and regional legal and regulatory requirements, the DIC Group’s
overseas production facilities work to minimize industrial waste through the voluntary recycling and reuse of materials.
,Q¿VFDO\HDU',&*URXSFRPSDQLHVLQWKH$PHULFDVDQG(XURSH*UHDWHU&KLQDDQGWKH$VLD±3DFL¿FUHJLRQGHSOR\HGPHDVXUHVDLPHGDWDFKLHYLQJUHGXFWLRQV
in industrial waste generated during various production processes that exceeded nationally and regionally mandated levels. Nonetheless, the total volume of industrial
ZDVWHJHQHUDWHGE\',&*URXSSURGXFWLRQIDFLOLWLHVRYHUVHDVURVH/RRNLQJDKHDGUHJLRQDOKHDGTXDUWHUVLQWKHVHDUHDVZLOOIRFXVRQIXUWKHUUHLQIRUFLQJ
compliance with local laws and regulations while at the same time cooperating with DIC’s Responsible Care and Production Management departments to analyze the
UHDVRQVIRUWKLVLQFUHDVHZLWKWKHDLPRIOLPLWLQJWKHJHQHUDWLRQRILQGXVWULDOZDVWHDQGUHGXFLQJWKHYROXPHRILQGXVWULDOZDVWHGLVSRVHGRIDVODQG¿OODIC Report 2016 ̲36

Themes that Demonstrate
Unique Capabilities

Basic
Approach
基本的な考え方108,962㎘※

Production
volume893,000
metric tonnes%
from fiscal year 2014

metric tonnes（-2.2％）

10,862,000㎥+5.0 %

from fiscal year 2014139

COD inmetric +59.0 %wastewater 844 tonnes from fiscal year 2014

+74.0 %

metric from fiscal year 2014
tonnesSoil-related emissions oftargeted substances(551 substances andmetricone substance group)
tonnes-1.6

Aquatic emissions of targeted substances(551 substances and%metricone substance group)
tonnes from fiscal year 2014

0

Emissions into the air
CO2 emissions

Total water
consumption

Production
volume1,471,000

Emissions into soiltimes
m3 the fiscal year 2014 level12fiscalyear 2014-16.0 % from

Industrial waste disposedof as landfill

26,039,000 2.3

OUTPUT

INPUT

176,594 ㎘ +0.0

metrictonnesEmissions into water
Wastewater discharged

the fiscal year
times 2014 levelfiscalyear 2014-4.3 % fromSOx emissions

metric tonnes from fiscal year 2014

30,063,000㎥
Total energy consumption(crude oil equivalent)

metrictonnesmetric tonnes from fiscal year 2014

* Renewable energy is not included in the above figures.

2.4

NOx emissions

249,000 -2.4% 177
382 +8.0% 38

Total water
consumption

DIC Group(Overseas)

Emissions into the air
CO2 emissions

Atmospheric emissions of targeted substances(551 substances and one substance group)

fiscal-2.6 % fromyear 2014（-1.5％）The DIC Group quantifies its
environmental inputs (resources
consumed), such as energy
and water consumption, andoutputs, that is, emissions into the
HQYLURQPHQWDQGXVHVLWV¿QGLQJVto formulate comprehensive andHI¿FLHQWVWUDWHJLHVIRUUHGXFLQJLWV
environmental footprint.

Total energy consumption(crude oil equivalent)

OUTPUTDIC Group(Japan)INPUT

Overview ofEnvironmental
Impact of the DIC
Group’s Operating
Activities

408,000 +1.4%

metric tonnes from fiscal year 2014

27,090 +6.2
metric tonnes

3,357,000m3+12.4 %

Emissions into soil
Industrial waste
disposed of as landfill

Wastewater
discharged

from fiscal year 2014%

from fiscal year 2014

Managing Chemical Substances in Products
Promoting Safety for Chemical Substances and Products
Basic Approach and Framework for Implementation,QDFFRUGDQFHZLWKWKH81(FRQRPLF&RPPLVVLRQIRU(XURSH¶V*OREDOO\+DUPRQL]HG6\VWHPRI&ODVVL¿FDWLRQDQG/DEHOOLQJRI&KHPLFDOV *+6 LQ',&
established CIRIUS (Chemical Substance Information Comprehensive Management System) for domestic products with the aim of responding swiftly to requests
WRUHGXFHULVNVE\SURYLGLQJFXVWRPHUVZLWKVXI¿FLHQWLQIRUPDWLRQRQKD]DUGVDVVRFLDWHGZLWKFKHPLFDOVXEVWDQFHV&,5,86FHQWUDOL]HVWKHPDQDJHPHQWRI
information about raw materials and chemicals to facilitate the provision of reliable SDSs. The system also automatically checks various laws and regulations.
,Q',&EHJDQXVLQJWKH:HUFV DJOREDO6'6DQGODEHOFUHDWLRQV\VWHPGHYHORSHGZLWKNQRZKRZIURP',& IRUSURGXFWVIRUH[SRUW$VDUHVXOW',&QRZ
has a structure that enables it to compile SDSs for more than 250,000 products that comply with national and regional laws and regulations and is accessible in
all necessary local languages. In April 2014, DIC began using the Wercs to issue SDSs and labels for all exported products.
As specialized expertise in chemical substance management is essential, DIC focuses on training in the manufacture, import and handling of chemicals inaccordance with applicable laws and regulations and draws on its proprietary licensing system to enhance the skills of employees.
Collecting, Analyzing and Communicating the Latest Information

DIC collects the latest information on chemical substances through international consultants and experts, news wire services andchemicals industry associations to ensure that it can respond swiftly and effectively to revisions in laws.
,Q¿VFDO\HDUVWHSVZHUHWDNHQDFURVV$VLDWRUHLQIRUFHWKHPDQDJHPHQWRIFKHPLFDOVXEVWDQFHV2ISDUWLFXODUQRWHDQHZ
law came into force in the ROK, while Taiwan introduced a new system for registering chemicals and the PRC published the Catalog
of Hazardous Chemicals (2015). In response, DIC worked steadily to strengthen communications with local Group companies and toanalyze information and submit applications for registration of pertinent chemical substances.
,QDGYDQFHRIWKH0D\GHDGOLQHIRUUHJLVWHULQJH[LVWLQJFKHPLFDOVXEVWDQFHVXQGHUWKH(XURSHDQ8QLRQ¶V5HJLVWUDWLRQ
Evaluation, Authorisation and Restriction of Chemicals (REACH) regulation, DIC is registering existing exported low-volume chemical
substances and collecting information on substances of very high concern (SVHCs), restricted substances and authorized substances.
* Under REACH, businesses bear full responsibility for evaluating the safety of chemical substances they produce and/or use with no distinction made between “existing” and“new” substances. REACH also prohibits the use of specified chemical substances that pose unacceptable risks to human health.

Training in Chemical Substance Management

Compliance with laws and ordinances is a fundamental requirement for DIC as a comprehensive chemicals manufacturer and thus central to risk management. Accordingly, the Company endeavors
to improve employees awareness and knowledge of chemical substance regulations in Japan and overseas by holding workshops and maintaining a proprietary internal licensing system.
Efforts include providing specialized training for individuals involved in exporting chemical substances in line with the Foreign Exchange and Foreign Trade Act, and for individuals involved inimporting substances in line with the Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc. and other pertinent legislation. DIC only licenses employees who
have completed designated training and passed in-house examinations. The licenses are valid for either two or three years. Licenses permit these individuals to engage in import and export
operations. To renew their licenses, they must retake classes and pass the subsequent exams.
$VRI¿VFDO\HDUHPSOR\HHVKDGTXDOL¿HGIRUD&ODVV$OLFHQVHZKLFKUHTXLUHVVSHFLDOL]HGNQRZOHGJH$QRWKHUSHRSOHKDGSDVVHGWKHH[DPIRUD&ODVV%OLFHQVHZKLFKSHUWDLQVWRDQFLOODU\RSHUDWLRQV,Q¿VFDO\HDU',&HVWDEOLVKHGDQHZDGYDQFHGFRXUVHLQZKLFKLQGLYLGXDOVHDUQHGOLFHQVHV
37̲ DIC Report 2016

Quality

Enhancing Product Quality
and Customer Satisfaction

Basic Themes

Related information WEB

http://www.dic-global.com/en/
csr/quality/

Basic Approach“Contribute to the prosperity of customers and society by consistently providing reliable products.”

Framework for Implementation
To better leverage its agility and comprehensive capabilities, DIC previously realigned its overall quality management system (QMS),
establishing a matrix-like corporate organization that positions product divisions on the vertical axis and the Production Administrative Division
DQGWKH7HFKQLFDO$GPLQLVWUDWLYH'LYLVLRQRQWKHKRUL]RQWDOD[LV,QOLQHZLWKWKLVFKDQJHWKH*URXSLQWURGXFHGD406EDVHGRQ,62
WKH,QWHUQDWLRQDO2UJDQL]DWLRQIRU6WDQGDUGL]DWLRQ¶VEHQFKPDUNIRUVXFKV\VWHPVDQGVXEVHTXHQWO\HDUQHG,62FHUWL¿FDWLRQIRUDOORILWV
production facilities. The Group capitalizes on this QMS and on its overall system to promote ongoing efforts to enhance quality.
In line with its belief that the improvement of product quality is essential to upholding a sound operating foundation, in¿VFDO\HDU',&HVWDEOLVKHGWKH4XDOLW\$VVXUDQFH'HSDUWPHQWDVZHOODVVHWXSTXDOLW\DVVXUDQFHVHFWLRQVZLWKLQ
each product division, with the goal of further reinforcing QMS across the entire DIC Group. By thus dividing productVSHFL¿F406DQG*URXSZLGH406WKH*URXSKDVVXFFHHGHGLQFUHDWLQJD406WKDWLVERWKSURPSWDQGPHWLFXORXV

Aspects visible
to customers

Close cooperation among relevant divisions anddepartments from product planning through toshipment enables DIC to develop and manufacture
products with high added value, while rigorous process
DQGLGHQWL¿FDWLRQPDQDJHPHQWHQVXUHSURGXFWTXDOLW\
Meticulous risk evaluation is conducted at the design
review stage to guarantee safety. After products are
sold, customer and market assessments are gathered
and fed back to development departments to facilitate
further quality improvements.

2

Product
divisions
QMS

Increasecustomersatisfaction

Production facilities certified under ISO 9001

Production Administrative Division
andTechnical Administrative Division

Initiatives Aimed at Increasing Customer Satisfaction

DIC’s system for ensuring
customer satisfaction

1

Enhancequality

Requests from customers/market and society
Information from customer
Requirements

Output from DIC
Products

Sales
strategies
Planning
andproposals

Qualityassurance
Design anddevelopment

Marketing

Production

Contents/composition
Container/mode of packing
Consideration of environment
Workability and conveniencein handling
Disposal after use
Safety level of raw materials
Conformity to laws and regulations
Productivity and capacity
Safety and stability of processes
Costs/stable supply

SDSs
Technical
documents

Labeling
Packaging
Sample for
evaluation test

Design review
Validation
Control of changes

Product evaluation
Trial production
Mass trial production

Contract /delivery specifications
COA (certificate of analysis)
SDSs
Catalogs
Product

Production/quality
confirmation Products

DIC website
Customer
お客様 相consultation
談 情報
information
Technical service
Quality validation

Requests for improvement
Requests for cost reduction
Dealing with customer
information
Top management diagnosis/
internal audit
Market requirements
Self-regulation of industry

Business activities of DIC aimed at delivering high-quality products that are safe and reliable

New Efforts to Enhance Employee Education in the Area of Product Quality&RPPLWWHGWRSURYLGLQJVDIHSURGXFWVWKDWFXVWRPHUVIHHOVHFXUHXVLQJDQGDUHVDWLV¿HGZLWK',&UHFRJQL]HVWKHLPSRUWDQFHRIHQVXULQJWKDW
employees maintain a high awareness of quality, as well as a constant commitment to achieving further quality improvements and upholding high
TXDOLW\VWDQGDUGV,Q¿VFDO\HDUWKH&RPSDQ\EHJDQSURYLGLQJHGXFDWLRQUHJDUGLQJSURGXFWTXDOLW\WRDOO',&*URXSHPSOR\HHV%HJLQQLQJLQ¿VFDO\HDUWKH&RPSDQ\DOVRRIIHUVWUDLQLQJOHGE\H[WHUQDOH[SHUWVLQWKH¿HOGIRUHPSOR\HHVLQYROYHGLQTXDOLW\PDQDJHPHQW*RLQJ
forward, DIC will continue working to establish and promote awareness of product quality as essential to upholding a sound operating foundation.
Training session

VOICE from the DIC Group2XUJRDOLVWRHQVXUHWKHVDWLVIDFWLRQRIFXVWRPHUVE\SURYLGLQJVDIHSURGXFWVDQGVHUYLFHVWKDWWKH\FDQXVHZLWKFRQÀGHQFH
,Q¿VFDO\HDU',&HVWDEOLVKHGWKH4XDOLW\$VVXUDQFH'HSDUWPHQWDPRYHGHVLJQHGWRIXUWKHUVWUHQJWKHQWKH*URXS¶V406
We collaborate with the quality assurance sections of product divisions to ensure awareness of DIC’s Quality Policy and implementa variety of related measures. Product divisions work to enhance quality at all stages of a product’s life cycle, from planning,development and the selection of raw materials through to production, disposal and recycling. The Quality Assurance Department is
responsible for fostering human resources conducive to achieving further quality improvements. Accordingly, we focus on planningand promoting educational programs that increase awareness of quality and improving quality management skills.
General Manager, Quality Assurance Department Yuuichi Kougo

DIC Report 2016 ̲38

Themes that Demonstrate
Unique Capabilities

DIC’s Quality PolicyCore and CategorySpecific Themes

Along with its Environment, Safety and Health Policy, the DIC Group views the improvement of product quality as a theme that is essential to upholding a sound operating foundation.
Accordingly, the Group seeks to ensure every employee shares the sentiment conveyed in its Quality Policy and works continuously to enhance quality and ensure customer satisfaction.

Human Resources Management

Related information

Working to Enhance Job
Satisfaction

WEB

http://www.dic-global.com/en/csr/
stakeholder/staff

Basic Approach to Human Resources Management
With the aim of being an organization that empowers all employees to reach their full potential, the DIC Group is committed torespecting human rights and eliminating all forms of discrimination and to creating a work environment that embraces diversity.
The Group also strives to support a healthy work–life balance for each employee and create a work environment conducive tojob satisfaction and to foster local human resources in markets around the world, which it recognizes as essential to ensuring
sustainable corporate growth under its current medium-term management plan.

Respect for Human Rights
The DIC Group supports and adheres to global codes governing human rights, notably the Universal Declaration of Human Rights. The DIC Group
Code of Business Conduct, which outlines standards that DIC Group employees are expected to observe, lays down provisions prohibiting human rights
violations and requiring respect for diversity—philosophies that are the foundation of the DIC Group’s corporate activities. All DIC Group employees are
REOLJHGWRSURYLGHZULWWHQSOHGJHVWRDELGHE\WKH',&*URXS&RGHRI%XVLQHVV&RQGXFWDQGWRFRQGXFWWKHPVHOYHVDVVWLSXODWHGWKHUHLQ,Q¿VFDO\HDU
2015, a total of 57 domestic and overseas Group companies implemented voluntary human rights and labor practices inspections as part of ongoing
efforts to prevent issues from arising. The results of these inspections were assessed and no violations were found to exist.
,Q¿VFDO\HDU',&EHFDPHDVLJQDWRU\WRWKH81*&SOHGJLQJLWVVXSSRUWIRUWKH81*&¶VSULQFLSOHVZKLFKLQFOXGHWHQHWVUHJDUGLQJKXPDQrights and labor. The Company continues to implement related initiatives in all areas of its corporate activities to reinforce respect for human rights in thehuman resources management practices of all Group companies and prevent violations from occurring.

Building Trust with the DIC Employees’ Union
DIC’s management and representatives of its employees’ union meet regularly with the goal of ensuring healthy industrial relations
based on mutual trust. In addition, through labor–management councils and casual management conferences, DIC shares
management information and its vision for the future with union representatives and encourages the frank exchange of opinions.

Global Human Resources Management
The DIC Group has established a global human resources management framework capable of supporting efforts to foster local
employees overseas, as well as to hire individuals based on business considerations without regard for nationality. Having created ahuman resources system and introduced specialized training for the next generation of executives at Group companies in the PRC,
the Group has recently taken similar steps for companies in Southeast Asia. Other efforts include creating global human resources
databases and establishing systematic training programs.
Basic Personnel Statistics

Number of
employees

MaleFemaleTotal
Male

Average age

FemaleTotal

Averageyears ofemployment

Male

New
graduates
hired

Male

FemaleTotal
FemaleTotal

39̲ DIC Report 2016

Fiscal year 2013

Fiscal year 2014

Fiscal year 2015

2,842
642
3,484
42.2
39.4
41.6
18.2
17.0
18.0
70
24
94

2,876
666
3,542
42.2
39.8
41.7
18.2
17.4
18.1
72
19
91

2,898
683
3,581
42.2
40.3
41.8
18.2
17.7
18.1
75
20
95

Retention
rate (after
three years)

Male

Separations(voluntary)(number ofindividuals)

Male

Separation rate(voluntary)

FemaleTotal
FemaleTotal
Male
FemaleTotal

Fiscal year 2013

Fiscal year 2014

Fiscal year 2015

(Fiscal year 2010 hires)(Fiscal year 2011 hires)(Fiscal year 2012 hires)

100%
100%
100%
14
10
24
0.5%
1.6%
0.7%

91.2%
100%
92.6%
23
7
30
0.8%
1.1%
0.9%

95.7%
100%
96.5%
37
8
45
1.3%
1.2%
1.3%

The DIC Group actively pursues diversity by employing a broad spectrum of individuals without regard to considerations such as gender,
nationality, physical limitation or age. The Group works to foster a corporate culture that draws on its understanding and respect for diversity to
produce creative ideas and to incorporate the concept of diversity into management, thereby creating workplaces that enhance job satisfaction.
Hiring Diverse Human Resources

2

8

1HZKLUHVIRUÀVFDO\HDU
included 8 foreign nationals
Core and CategorySpecific Themes

With the objective of securing talented individuals with advanced specialized capabilities, global
perspectives and language abilities, DIC actively promotes the hiring of international students
completing undergraduate or graduate studies at Japanese universities; Japanese and foreign
nationals completing undergraduate or graduate studies at overseas universities; and experienced
mid-career candidates with extensive experience and expertise. At present, 31 foreign nationals
work in various capacities at DIC. Fiscal year 2016 new hires included eight foreign nationals.
Expanding Career Opportunities for Women

In line with its commitment to promoting diversity, DIC implements a variety of initiatives to expand
career opportunities for female employees. Since launching a full-scale program with this objective in2007, the Company has pushed ahead with measures to transform the mindset of all employees andits corporate culture, provide education designed to encourage the drive and determination of female
HPSOR\HHVDQGEURDGHQWKHUDQJHRIMREVRSHQWRZRPHQ,Q¿VFDO\HDU',&HVWDEOLVKHGWKH
C3 Advisor System, whereby female employees with experience in handling the demands of careerand childcare are appointed to advise their juniors who are currently taking childcare leave on ways
to maintain an effective balance once they return to work.
With the goal of being an organization that empowers female employees, DIC will continue to
implement initiatives focused on broadening the range of jobs open to women. Through such efforts,
the Company aims to boost the percentage of management positions occupied by female employeesWRE\¿VFDO\HDUIURPLQ¿VFDO\HDU',&ZLOODOVRFRQWLQXHZRUNLQJWRH[SDQG
its recruitment of new female graduates from technical schools and bachelor’s and master’s degree
programs, both sources of talented human resources. DIC has also formulated an action plan basedon Japan’s Act on Promotion of Women’s Participation and Advancement in the Workplace.

Female Employees
in Management Positions

Fiscal year 2015

2.6％

Fiscal year 2020

8.0％

Action plan (published in Japanese only): WEB http://www.dic-global.com/ja/csr/stakeholder/pdf/promote_career_opportunities_for_women.pdf

3Reemployment after Retirement and Support for Retirement Planning

DIC has deployed a system that facilitates the reemployment until age 65 of individuals reaching the retirement age of 60 and wishing to remain
with the organization. With available options including full-time work, short-time work and work sharing, this system enables reemployedindividuals to maximize their experience and make full use of their accumulated technological capabilities and specialized expertise, thereby
contributing to sustainable growth for the DIC Group andNumber of Reemployed Individuals
the training of subsequent generations.
DIC also offers classes for employees within a year of
Fiscal year 2013 Fiscal year 2014 Fiscal year 2015
retirement that helps them prepare for retirement. These
classes provide assistance with retirement planning,
1XPEHURIUHWLUHHV $
24
39
126
education regarding the national pension system andIndividuals seeking
16
28
104
reemployment
retirement lifestyle simulations.
1XPEHURILQGLYLGXDOV
16
27
97
reemployed (B)Reemployment rate (B) / (A)66.7 ％
69.2 ％
77.0 ％

VOICE from the DIC GroupI want to use my ability to understand local thinking to serve as a bridge between Japan and overseas markets.
When I joined DIC I had just graduated university in the PRC, spoke no Japanese and didn’t really know anything about Japanese companies.
I was nervous and uncertain in the beginning, but the workplace atmosphere was great and my superiors and colleagues were kind and patientin teaching me everything I needed to know, so I really enjoyed my job. I am always impressed by my Japanese colleagues’ industrious natureand meticulous attention to detail in all aspects of their work, as well as by the corporate culture of Japanese companies, which emphasizes thediligent observation of rules and the creation and provision of safe, high-quality products. In the future, I want to use my ability to understandlocal thinking to serve as a bridge between Japan and overseas markets with the aim of reinforcing relations and contributing to the success of
our LCs business in the PRC and Taiwan.
Fine Synthesis Technical Group 6, Saitama Plant Wei Wu

DIC Report 2016 ̲40

Themes that Demonstrate
Unique Capabilities

1

Basic Themes

Promoting Diversity

Initiatives that Support a Healthy Work–Life Balance
Enhancing Programs that Help Employees Balance the Demands of Work and HomeIn 1986, DIC blazed a trail for chemicals manufacturers in Japan by implementing a childcare leave program. Having established work and childcare balance support programs
that exceed legal requirements in 2007, the Company continues to promote measures that make it easier for employees to make use thereof. DIC has also deployed systems thatenable employees to restrict the distance they can be transferred, reduce
Number of Employees Using the Childcare Leave and Leave to Assist with Parenting Programs
overtime hours, encourage the taking of annual paid leave and promotehealth management. Looking ahead, the Company will examine effective
Fiscal year 2013
Fiscal year 2014
Fiscal year 2015
measures in response to amendments to the Act on the Welfare of Workers
1XPEHURIHPSOR\HHVXVLQJ
21
28
29
the Childcare Leave Program
Who Take Care of Children or Other Family Members Including Child Care
1XPEHURIHPSOR\HHVXVLQJ
and Family Care Leave, planned for in 2017, to prevent employee turnover
the Leave to Assist with Parenting
43
63
64
Programattributable to the need to care for children or elderly family members.
1RWH)LJXUHVIRUILVFDO\HDUDUHIRUDQLUUHJXODUWUDQVLWLRQDOQLQHPRQWKSHULRG $SULO±'HFHPEHU 

Securing and Fostering Human Resources
1

Ability-Oriented Qualification System and Fair and Impartial Treatment

7RHQVXUHWKDWWKHHIIRUWVDQGDFKLHYHPHQWVRIDOOHPSOR\HHVDUHUHÀHFWHGDSSURSULDWHO\LQWKHLUWUHDWPHQW',&KDVFRQVROLGDWHGLWVQXPHURXVHPSOR\HHTXDOL¿FDWLRQV\VWHPVLUUHVSHFWLYHRIMREFODVVL¿FDWLRQDQGHGXFDWLRQDOFUHGHQWLDOV7KHVHOHFWLRQRIHPSOR\HHVWRUHFRPPHQGIRUTXDOL¿FDWLRQLVGRQHWKURXJKVFUHHQLQJEDVHGRQREMHFWLYHVWDQGDUGV
thereby guaranteeing equal opportunities for promotion to all motivated, capable employees. Remuneration and personnel evaluation systems designed to enhance job
VDWLVIDFWLRQHQVXUHWKDWDELOLWLHVDQGDFKLHYHPHQWVDUHDVVHVVHGDSSURSULDWHO\DQGUHÀHFWHGLQDWLPHO\PDQQHULQWKHLUWUHDWPHQW2IQRWH',&KDVLQWURGXFHG0%2LQWRLWV
personnel evaluation system, a goal-setting management tool that promotes both corporate growth and employee development. Results of individual evaluations are fed back in
IXOOWRHPSOR\HHVLQFOXGLQJUHDVRQLQJEHKLQGGHWHUPLQDWLRQV²DWUDQVSDUHQWSURFHVVWKDWHQVXUHVHPSOR\HHVDUHODUJHO\VDWLV¿HGZLWKHYDOXDWLRQUHVXOWV

2

Fostering Human Resources to Reinforce Front-Line Capabilities and Accelerate Change

Having recognized fortifying its Group organizational capabilities and enhancing the skills of its people as important challenges, DIC has declared the
medium-term focus of its human resources development program as being to foster human resources capable of reinforcing front-line capabilities andaccelerating change. DIC’s training system comprises programs in six categories. These programs are based on curricula that emphasize a systematic
approach to helping each employee acquire critical skills. Going forward, training emphasizes the concepts of “global” and “diversity,” with training to
improve English-language skills expanded and Japanese-language training for non-native speakers and entry-level education for mid-career hires added.
DIC Training Programs
Managementlevel training

Promote globalization, strengthen/foster the ability of management-level employees todeal with risks

DIC Management School, media training

Global human resources
development

Systematic efforts to foster managers and employees of overseas Group companies,
enhance the skills of Japanese employees assigned to overseas posts, improve theJapanese-language abilities of employees who are not native speakers

Global Management (preparatory training for employees assigned tooverseas posts), Global Challenge Program, Target Global Program(training to enhance English-language communications skills), Effective
E-Mailing (training in how to compose e-mails in English), Japaneselanguage training for employees who are not native speakers/HYHOVSHFLÀFWUDLQLQJ(GXFDWLRQDQGWUDLQLQJWRHTXLSHPSOR\HHVZLWKWKHVNLOOVWRIXO¿OOUHVSRQVLELOLWLHVDWHDFKOHYHO4XDOL¿FDWLRQVSHFL¿FWUDLQLQJ -06VHQLRU WUDLQLQJWDLORUHGWRGLIIHUHQWPDQDJHPHQWUDQNV

Department- and
MREVSHFLÀFWUDLQLQJ

Education and training to enhance capabilities required by different departments and jobs

Human resources development programs tailored to production departments (Kaizen Skill
Improvement Training Program, others), technical departments (training to support the ability topropose R&D themes, others), sales departments (training to cultivate proposal development
capabilities, others) and support departments (“why-why analysis” training, others)On-the-job training

Hands-on training in the workplace to foster employees and cultivate skills:RUNSODFHVSHFL¿FRQWKHMREWUDLQLQJGRPHVWLFWHFKQLFDOGHSDUWPHQWWUDLQHHSURJUDP
Overseas Trainee Program, Reverse Trainee Program

Self development

Support for employees seeking to enhance their skills

Correspondence courses, e-learning courses, in-house seminar courses, Skype-based English
conversation courses, preparatory courses for the TOEIC Institutional Program (IP) Test

VOICE from the DIC Group
There is more to English than speaking, listening comprehension and reading!
My job involves a fair amount of business travel overseas, so I took the Target Global Program, the goal of which is to enhance Englishlanguage communications skills. I think that people are inclined to think that English speaking, listening comprehension and reading
abilities are all you need to do business overseas. This program, which focused on assertiveness, negotiating techniques and how to
conduct meetings to motivate people to generate ideas and reach conclusions, taught me what is really important. Training sessions were
FRQGXFWHGHQWLUHO\LQ(QJOLVKEXWWKHUHOHYDQFHRIZKDW,OHDUQHGLVFHUWDLQO\QRWOLPLWHGWRWKH(QJOLVKVSHDNLQJZRUOG,DPFRQ¿GHQWWKDWWKHVHVNLOOVZLOOVWDQGPHLQJRRGVWHDGDQG,ORRNIRUZDUGWRDSSO\LQJWKHPLQWKH¿HOG
Functional Coatings Sales Department, Liquid Compounds Product Division Masayuki Aota

41̲ DIC Report 2016

Expanding Sustainable
Procurement Worldwide

Related information

WEB

Basic Themes

Sustainable Procurement

http://www.dic-global.com/en/csr/
stakeholder/partner

Promoting CSR Procurement
The DIC Group CSR
Procurement Guidelines❶ Compliance with laws and social norms❷ Respect for human rights andconsideration for work environments❸ Safety and hygiene❹ Promotion of sound business management❺ Consideration for the environment❻ Information security❼ Appropriate quality and safety andimproved technologies❽ Flexible attitude to ensure stable supplies andrespond to change

In July 2013, the DIC Group published version 2 of its DIC Group Supply-chain CSR Deployment Guidebook. The
Group uses this document to promote awareness of its CSR procurement guidelines among suppliers and uses it
as a tool to encourage efforts to advance CSR procurement. Version 2 of the guidebook—which further segments
the DIC Group’s 10 CSR procurement guidelines into 46 issues, providing explanations of each, as well as a
VHOIHYDOXDWLRQTXHVWLRQQDLUHDQGD¿YHOHYHOPDUNLQJVKHHW²KDVEHHQGLVWULEXWHGWRVXSSOLHUVZRUOGZLGH)URP
1RYHPEHUWKURXJK'HFHPEHUWKH',&*URXSFRQGXFWHGDVVHVVPHQWVIRUVXSSOLHUVSURYLGLQJ
feedback to all assessed companies.
Following the self-evaluation stage, the DIC Group conducts on-site inquiries
for certain suppliers. In addition to enabling the Group to request necessary
improvements, such inquiries are useful in enhancing mutual understanding
and encouraging responsible procurement practices. Between fiscal years
2011 and 2015, the DIC Group conducted on-site inquiries for 45 suppliers.

❾ Contribution to local communities and society❿ Promoting CSR and deploying

it in the supply chain

Cumulative number of suppliers assessed(November 2013–December 2015)

566

Feedback provided

Equivalent to 90%-plus of procurement spending

Feedback sheet

Global Procurement Initiatives,Q¿VFDO\HDU',&DQGUHJLRQDOKHDGTXDUWHUVLQWKH35&DQGWKH$VLD±3DFL¿FUHJLRQ
collaborated to promote cooperation in both overall sustainability and CSR procurement
at principal Group companies in the two regions. Subsequently, the Group conductedassessments of 70 suppliers in Greater China (including Taiwan). As of December 31, 2015,
51 of these companies had submitted completed questionnaires and received feedback. DIC
also collaborated with the Sun Chemical Group, which functions as the DIC Group’s regional
headquarters for the Americas and Europe, to promote awareness of CSR procurement byconducting assessments of 160 key suppliers in these two regions.

3UHVHQWDWLRQIRUSXUFKDVLQJRI¿FHUVLQWKH$VLD±3DFL¿FUHJLRQVOICE from the DIC GroupWe are promoting CSR procurement by conducting on-site inquiries for major suppliers.
I currently work in the Purchasing Department in the area of raw materials procurement. With the aim of realizing sustainable procurement, we periodically conduct onsite inquiries for suppliers of principal raw materials. Actually going to the supplier gives one a much clearer idea of the supplier’s initiatives than can be gained simply byreading questionnaire responses. One company I visited was taking steps to illuminate legal and regulatory risks and had established study groups to explore issues related
to compliance and the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors, allowing me to see firsthand the importance the company placed oncompliance initiatives. I also inspected the company’s production facilities, giving me the opportunity to observe its stringent process control systems and BCP measures,
including dividing production among multiple facilities. This process enabled us to deepen our relationship with this particular supplier.
Assistant Manager, Purchasing Department

Miho Hayashi

DIC Report 2016 ̲42

Themes that Demonstrate
Unique Capabilities

With the aim of ensuring its extended supply chain functions in a socially responsible manner, the DIC Group established the DIC Group Universal Purchasing Policy in 2008, based on which it also
IRUPXODWHGSXUFKDVLQJPDQDJHPHQWUHJXODWLRQVWKHUHE\FUHDWLQJDFRQ¿JXUDWLRQIRUVXVWDLQDEOHSURFXUHPHQW,QWKH*URXSIRUPXODWHGWKH',&*URXS&653URFXUHPHQW*XLGHOLQHVZKLFKFODULI\issues it expects suppliers to address. The Group promotes CSR procurement across its supply chain by ensuring that all suppliers understand guidelines and implement improvements and initiatives
QHFHVVDU\WRHQVXUHWKHVXVWDLQDELOLW\RI*URXSSURFXUHPHQW7KH',&*URXSKDVRSHUDWLRQVLQ-DSDQWKH$PHULFDVDQG(XURSH*UHDWHU&KLQDDQGWKH$VLD±3DFL¿FUHJLRQ*URXSFRPSDQLHVLQGLIIHUHQW
regions collaborate to share information and liaise with suppliers on a global basis to facilitate the preferential procurement of critical raw materials.

Core and CategorySpecific Themes

Basic Approach to Sustainable Procurement

Business Models that Respond to Social Imperatives

Establishing Solutions-Oriented
Businesses

Related information WEB

http://www.dic-global.com/en/
csr/stakeholder/customer.html&DSLWDOL]LQJRQWKH&KDQJLQJ1HHGVRI6RFLHW\
7KH',&ZD\RIGRLQJEXVLQHVVVWDUWVZLWKOLVWHQLQJWRZKDWLWVFXVWRPHUVVD\',&¶VDSSURDFKLVWRVZLIWO\JUDVSWKHFRQFHUQVRILWVFXVWRPHUVWRJDLQLQVLJKWVLQWR
HPHUJLQJVRFLDOQHHGVDQGRIIHUDSSURSULDWHVROXWLRQV:KLOHWKHVWDUWLQJSRLQWLVWKHYRLFHRILWVFXVWRPHUV²DQDSSURDFKNQRZQDV³FXVWRPHULQ´²WKH*URXSDOVRWDNHV
D³PDUNHWLQ´DSSURDFKSD\LQJKHHGWRLVVXHVRIJOREDOVLJQL¿FDQFHVXFKDVJOREDOZDUPLQJZLWKWKHDLPRISUHGLFWLQJWUHQGVDQGDQWLFLSDWLQJWKHIXWXUHQHHGVRIVRFLHW\(QKDQFLQJ%UDQG6WUHQJWK(VWDEOLVKHGDVDSULQWLQJLQNVPDQXIDFWXUHU',&KDVH[SDQGHGLWVEXVLQHVVE\OHYHUDJLQJLWVFDSDELOLWLHVLQRUJDQLFSLJPHQWVV\QWKHWLFUHVLQVDQGILQHFKHPLFDOVFDSLWDOL]LQJRQLWVZHDOWKRIHOHPHQWDOWHFKQRORJLHVWRGHYHORSDGLYHUVHSRUWIROLRRILQQRYDWLYHSURGXFWV7RHQFRXUDJHEURDGHUFXVWRPHUDZDUHQHVVRILWVGLVWLQFWLYHSURGXFWVDQGWHFKQRORJLHV',&SXEOLVKHVDQGGLVWULEXWHVPDUNHWRULHQWHGSURGXFWJXLGHERRNV',&
DOVRVWULYHVWRHQKDQFHLWVEUDQGVWUHQJWKWKURXJKSDUWLFLSDWLRQLQWUDGHVKRZVERWKLQ-DSDQDQGRYHUVHDVZKLFKLQ¿VFDO\HDULQFOXGHG
),1(7(&+-$3$17RN\R3DFNDQG7RXFK7DLZDQ7KH*URXSDOVRRUJDQL]HVSULYDWHH[KLELWLRQVIRUFXVWRPHUVRQDQLQGLYLGXDOEDVLV,GHQWLI\LQJDQG)RVWHULQJ3URPLVLQJ0DUNHWV%DVHGRQ3URMHFWLRQV1HHGVDQG)XWXUH7UHQGV:LWKWKHDLPRIUHDOL]LQJVXVWDLQDEOHJURZWKRYHUWKHPHGLXPWRORQJWHUP',&KDVLGHQWL¿HGSURPLVLQJQHZPDUNHWVDULVLQJIURPVRFLDOLPSHUDWLYHV
LQVL[NH\DUHDV²UHVRXUFHVPDWHULDOVDQGHQHUJ\ORJLVWLFVDQGLQGXVWULDOHTXLSPHQWHOHFWURQLFDQGHOHFWULFDOHTXLSPHQWSKDUPDFHXWLFDOVDQG
PHGLFDOGHYLFHVJHQHUDOFRQVXPHUSURGXFWVDQGFRQVWUXFWLRQLQIUDVWUXFWXUH²DQGLVVWULYLQJWRHYDOXDWHWKHSRVVLELOLW\RIFXOWLYDWLQJGHPDQG
LQHDFK7KH*URXSLVDOVRZRUNLQJWRLGHQWLI\NH\WHFKQRORJLHVDVZHOODVWRGLVFHUQWHFKQRORJLFDOLVVXHVWKDWPXVWEHDGGUHVVHGDOORZLQJLWWRDFFXUDWHO\JDXJHJURZWKDQGWHFKQRORJ\GHYHORSPHQWSRWHQWLDODQGGHWHUPLQHZKLFKRIWKHVHPDUNHWVRIIHUSURPLVHDQGZKLFKLWZLOOHQWHU/HYHUDJLQJD1HZ&RUSRUDWH2UJDQL]DWLRQ:LWKWKHREMHFWLYHRIHQKDQFLQJFXVWRPHUFRQYHQLHQFHDQGHPSKDVL]LQJLWVFRPSUHKHQVLYHSURGXFWDQGWHFKQRORJLFDOFDSDELOLWLHVLQ¿VFDO\HDU',&
DGRSWHGDQHZFRUSRUDWHRUJDQL]DWLRQWKDWLQFRUSRUDWHVWKHEHVWIHDWXUHVRILWV
SUHYLRXVPDWUL[OLNHRUJDQL]DWLRQZKLOHFODULI\LQJWKHUHVSRQVLELOLWLHVRILQGLYLGXDOGHSDUWPHQWVDQGHQKDQFLQJVSHHGWKXVKHOSLQJWRPD[LPL]HV\QHUJLHVDPRQJ*URXSFRPSDQLHVDVZHOODVWRUHLQIRUFHFROODERUDWLRQ$VSDUWRIWKLVUHRUJDQL]DWLRQ',&HVWDEOLVKHGD0DUNHWLQJ'LYLVLRQDQGD1HZ
%XVLQHVV3ODQQLQJ'HSDUWPHQW7KH0DUNHWLQJ'LYLVLRQRYHUVHHVWZRDFWLYLWLHV
PDUNHWIRFXVHGFURVVSRUWIROLRVWUDWHJLHVDQGPDUNHWLQJRISURGXFWVUHTXLULQJDPHGLXPWRORQJWHUPFRPPLWPHQWEHIRUHWKH\FRQWULEXWHWREXVLQHVVJURZWKDVZHOODVPDUNHWLQJRISURGXFWVDQGWHFKQRORJLHVWKDWGRQRWFRPHXQGHUWKH
MXULVGLFWLRQRIH[LVWLQJSURGXFWGLYLVLRQV7KH1HZ%XVLQHVV3ODQQLQJ'HSDUWPHQW
LVFKDUJHGZLWKGHVLJQLQJQHZEXVLQHVVPRGHOVIRUQHZEXVLQHVVHVCurrent
businesses
Product divisions

Marketing Division

New Business Planning Department

Marketing of existing products andnew products that represent
derivations thereofMarketing of products under medium- tolong-term development and products andtechnologies that do not come under
the jurisdiction of product divisions

Designing business models
for new businesses

Futurebusinesses

VOICE from the DIC GroupOur goal is to promote multifaceted marketing with an emphasis on enhancing our value chain.
,Q¿VFDO\HDUWKH&RUSRUDWH0DUNHWLQJ'HSDUWPHQWDQGWKHWKUHHPDUNHWLQJGHSDUWPHQWVDWWDFKHGWRWKHVDOHVDGPLQLVWUDWLYHGLYLVLRQVZHUHFRPELQHGWRFUHDWHWKHQHZ0DUNHWLQJ'LYLVLRQ2XUIRFXVLVRQWKUHHDUHDVZKLFKZHKDYHGXEEHG³LQGXVWULDOPDWHULDOV´³OLIHDQGLQIUDVWUXFWXUH´DQG³SDFNDJLQJEXVLQHVVHV´2XUFRUHDFWLYLWLHVHPSKDVL]HWZRSHUVSHFWLYHVQDPHO\',&*URXSSURGXFWVDQGFXVWRPHUVUHJLRQV:LWKWKHJRDORIKHOSLQJH[SDQGWKH*URXS¶VRSHUDWLQJIRXQGDWLRQDQGFRQWULEXWLQJWRFRQVROLGDWHGQHWVDOHVZHSURPRWHPXOWLIDFHWHG
PDUNHWLQJZLWKDQHPSKDVLVRQHQKDQFLQJRXUYDOXHFKDLQWKURXJKHIIRUWVWRUHVSRQGWRVKRUWWRPHGLXPWHUPVKLIWVLQQHHGVRIFXVWRPHUVDQGPDUNHWVDQGPHGLXPDQGORQJWHUPFKDQJHVLQVRFLDOVWUXFWXUH,DPLQFKDUJHRIPDUNHWLQJLQWKHDUHDRISDFNDJLQJEXVLQHVVHVZKLFKLQYROYHVSURPRWLQJWKHH[SDQVLRQRIVDOHVRIR[\JHQDQGYDSRUEDUULHUDGKHVLYHVODPLQDWLQJDGKHVLYHDQGRWKHUKLJKSHUIRUPDQFHPDWHULDOVLQJOREDOPDUNHWV0\WHDPDOVRZRUNVWRFXOWLYDWHQHZPDUNHWVDQGDFFHOHUDWH5 'LQOLQHZLWKQH[WJHQHUDWLRQWKHPHVE\FROODERUDWLQJZLWKWKH6XQ&KHPLFDO*URXSWRUHLQIRUFHJOREDOPDUNHWLQJ,QSDUWLFXODUZHDUHVWHSSLQJXSHIIRUWVWRSURPRWHWKHFXOWLYDWLRQRIQHZPDUNHWVE\RIIHULQJPDWHULDOVZLWKEDUULHUSURSHUWLHVPLJUDWLRQVROXWLRQVDQGRWKHUSURGXFWVWKDWUHVSRQGWRFRQFHUQVUHODWLQJWRIRUH[DPSOHVDIHW\DQGVHFXULW\DVZHOODVWKHHQYLURQPHQW7KHVHHIIRUWVJLYHXVDEURDGRYHUYLHZRIRXUYDOXHFKDLQSRVLWLRQLQJXVWRGHYHORSFRPSHWLWLYHVROXWLRQVIn charge of marketing for packaging businesses, Marketing Division
Saki Urakami

43̲ DIC Report 2016

3URSRVLQJ6ROXWLRQVWKDW/HYHUDJH
(OHPHQWDO7HFKQRORJLHV

Related information

WEB

Basic Themes

New Technology Development and Value Creation

http://www.dic-global.com/en/
csr/technology_development.html

6SHFL¿F,QLWLDWLYHVDQG$FKLHYHPHQWV
7KH',&*URXSLVHQFRXUDJLQJDVKLIWWRZDUGPDWHULDOVZLWKDUHGXFHGHQYLURQPHQWDOLPSDFW²QRWDEO\ZDWHUEDVHGDQGVROYHQW
IUHHPDWHULDOV²DQGLVDGYDQFLQJWKHGHYHORSPHQWRIHQYLURQPHQWIULHQGO\SURGXFWVIRUXVHLQGLVSOD\VDQGSDFNDJLQJDVZHOODVIRULQIUDVWUXFWXUHUHODWHGDSSOLFDWLRQVWKDWKHOSLPSURYHWKHHQYLURQPHQWDOSHUIRUPDQFHRIWKH¿QLVKHGSURGXFWVLQZKLFKWKH\DUHXVHG$*OREDO)UDPHZRUNIRU3URGXFW'HYHORSPHQW
7RPD[LPL]HJOREDO5 'UHVRXUFHV',&¶V7HFKQLFDO
$GPLQLVWUDWLYH'LYLVLRQDQG&RUSRUDWH5 ''LYLVLRQFRRSHUDWHZLWKWKH5 'FRPSRQHQWVRI',&*URXSFRPSDQLHVDURXQGWKHZRUOGLQFOXGLQJ',&*UDSKLFV&RUSRUDWLRQWKH6XQ&KHPLFDO*URXS¶VUHVHDUFKFHQWHUVLQWKH8QLWHG6WDWHVWKH8QLWHG.LQJGRPDQG*HUPDQ\
DQGWKH4LQJGDR',&)LQHFKHPLFDOV&R/WGLQWKH35&
,Q¿VFDO\HDUWKH*URXSHVWDEOLVKHGWZRSULQWLQJLQNVWHFKQLFDOFHQWHUVRQHLQ7KDLODQGIRUWKH$VLD±3DFL¿FUHJLRQDQGRQHLQWKH35&DVZHOODVD336WHFKQLFDOVHUYLFH
FHQWHULQWKH35&DQG*HUPDQ\,QWKH8QLWHG6WDWHVDQHZ
DOJDHUHVHDUFKFHQWHUZDVRSHQHGWKDWZLOOFDSLWDOL]HRQWKH
*URXS¶VDFFXPXODWHGH[SHUWLVHLQWKHFXOWLYDWLRQDQGXVHRI6SLUXOLQDWRFRQGXFWFRPSUHKHQVLYHDOJDHUHODWHGUHVHDUFKLQDUHDVUDQJLQJIURPFXOWLYDWLRQWRSUDFWLFDODSSOLFDWLRQ

7KH',&*URXS·V5 '&RQÀJXUDWLRQ
Global DIC Group
Technical
services
R&D aimed at
improvingexisting productsTechnical Administrative Division
Technical divisions
Fine Synthesis, Polymer, Adhesives,
Dispersion, Polymer Processing,Coating & Applied Materials

R&D aimed atdeveloping
new products

Product Innovation Center

Analysis Center

DIC Graphics Corporation
Sun Chemical Group
Qingdao DIC Finechemicals

Printing Inks Technical Center ‒Asia Paciﬁc/China
Polymer Technical Center ‒Asia Paciﬁc/China

Corporate R&D Division
Core Value Research Center

Investigative
research

Intellectual
Property Center
Product Safety &Regulatory Group

Research aimed atcommercializing
newly developed
products

Basic researchTechnology Planning
Department

PPS Technical Center‒China/Germany
Core development
Algae Research Center

Advanced Characterization
Research Center

Process Engineering
Research Center

Open Innovation
Promotion Groupetc.

Collaborative research, contracted research,
participation in public research programs, others

Universities and research organizations in Japan and overseas, national projects (Japan)

3URPRWLQJ(QYLURQPHQW)ULHQGO\3URGXFWV&RQVFLRXVDOZD\VRIWKHLPSRUWDQFHRIHQVXULQJLWVSURGXFWVDUHHQYLURQPHQWIULHQGO\',&SURPRWHVWKHGHYHORSPHQWRISURGXFWVDQGQHZ
WHFKQRORJLHVWKDWDUHXVHIXOWRVRFLHW\DQGZRUNVWRLQFUHDVHWKHZHLJKWLQJRIHQYLURQPHQWIULHQGO\SURGXFWVLQLWVSRUWIROLRE\UHGXFLQJWKHYROXPH
RIKD]DUGRXVVXEVWDQFHVLWXVHVIRFXVLQJRQSURGXFWVWKDWDUHOHVVKD]DUGRXVDQGSURGXFWVWKDWIDFLOLWDWHUHF\FOLQJDQGUHDOL]LQJVDIHUSURGXFWLRQSURFHVVHVWKDWJHQHUDWHOHVVZDVWHDQGXVHOHVVHQHUJ\',&DOVRFRQGXFWVHQYLURQPHQWDODVVHVVPHQWVRQDFRQWLQXRXVEDVLVDQGVWULYHVWRPDLQWDLQDVROLGJUDVSRIODZVDQGUHJXODWLRQVLQGLIIHUHQWFRXQWULHVDQGWHUULWRULHVDQGRIWUHQGVLQHQYLURQPHQWDOPHDVXUHVWKHUHE\HQVXULQJLWVRQJRLQJ
DELOLW\WRHQJLQHHUSURGXFWVWKDWFRPSO\ZLWKGLYHUVHUHJXODWLRQVJRYHUQLQJWKHXVHRIFKHPLFDOVXEVWDQFHVLQGLIIHUHQWPDUNHWV,Q¿VFDO\HDU
HQYLURQPHQWIULHQGO\SURGXFWVDFFRXQWHGIRURIDOOSURGXFWVSXWRXWE\',&DQGVXEVLGLDU\',&*UDSKLFVVOICE from the DIC GroupWe are developing environment-friendly packaging materials.
7KHPASLIMVHULHVLVDVHOHFWLRQRIDGKHVLYHVZLWKR[\JHQEDUULHUSURSHUWLHVWKDWUHGXFHWKHDPRXQWRISDFNDJLQJPDWHULDOZDVWH,QUHFHQW\HDUVZHKDYH
VHHQDQLQFUHDVHLQWKHXVHRISDFNDJLQJPDWHULDOVFRPSULVLQJPXOWLSOHOD\HUVRISDFNDJLQJ¿OPODPLQDWHGWRJHWKHUWRSDFNDJHIRRGSURGXFWVZLWKWKHDLPRISURORQJLQJVKHOIOLIHPASLIMZDVGHYHORSHGDVDQDGKHVLYHWKDWZRXOGSUHYHQWR[\JHQSHUPHDWLRQ7KHXVHRIPASLIMHOLPLQDWHVWKHQHHGWRXVHPXOWLSOHOD\HUVIDFLOLWDWLQJWKHSURGXFWLRQRIODPLQDWHGSDFNDJLQJ¿OPVWKDWDUHGUDPDWLFDOO\WKLQQHUDQGOLJKWHUWKDQFRQYHQWLRQDO¿OPVEXWERDVWH[FHOOHQWR[\JHQEDUULHUSURSHUWLHV$VZHOODVSUHYHQWLQJIRRGGHWHULRUDWLRQWKLQQHUOLJKWHU¿OPVUHGXFHWKHDPRXQWRISDFNDJLQJ¿OPXVHGDQGORZHU&2HPLVVLRQVDWWULEXWDEOHWRVXFK¿OPV:HZLOOFRQWLQXHZRUNLQJWRGHYHORSHQYLURQPHQWIULHQGO\SDFNDJLQJPDWHULDOVZLWKWKHDLPRIFRQWULEXWLQJWRWKHUHDOL]DWLRQRIDVXVWDLQDEOHVRFLHW\Head Researcher, Adhesives Technical Group 1, Adhesives Technical Division Masamitsu AraiDIC Report 2016 ̲44

Themes that Demonstrate
Unique Capabilities:LWKWKHDLPRIDFKLHYLQJLWV&RORU &RPIRUWE\&KHPLVWU\PDQDJHPHQWYLVLRQWKH',&*URXSLVOHYHUDJLQJLWVFRUHWHFKQRORJLHVLQFOXGLQJWKRVHLQWKHDUHDVRIRSWLFVDQGFRORURUJDQLFPROHFXODUGHVLJQDQGSRO\PHUGHVLJQDVZHOODVLWVHOHPHQWDOWHFKQRORJLHVLQVXFKDUHDVDVV\QWKHVLVFRPSRXQGLQJDQGIRUPXODWLRQDQG
VXUIDFHWUHDWPHQWWRGHYHORSKLJKYDOXHDGGHGSURGXFWV7KH*URXSLVDOVREXLOGLQJDSRUWIROLRRIQH[WJHQHUDWLRQSURGXFWVDQGQHZWHFKQRORJLHVWKDWZLOOVXSSRUWVXVWDLQDEOHJURZWKIRUVXFKNH\DSSOLFDWLRQVDV/&'VHOHFWURQLFVGLJLWDOSULQWLQJDQGSDFNDJLQJE\LQWHJUDWLQJWHFKQRORJLFDOUHVRXUFHVRULJLQDWLQJDFURVVWKH*URXS

Core and CategorySpecific Themes$FKLHYLQJ6XVWDLQDEOH*URZWKHarmony with the Community and Social Contributions$GGLQJ&RORUDQG&RPIRUWWR/LIHVW\OHV

Related informationWEB

http://www.dic-global.com/en/
csr/society

Basic Approach to Social Contribution%DVHGRQLWV*XLGHOLQHVIRU6RFLDO&RQWULEXWLRQ$FWLYLWLHVHVWDEOLVKHGLQILVFDO\HDUWKH',&*URXSZRUNVWRHQVXUH
harmony with local communities and individuals through activities aimed at building a strong relationship with society.

([DPSOHVRI5HFHQW,QLWLDWLYHVVisiting Science Lab Program

In line with the Japanese government’s efforts to promote career education
initiatives, as well as to help curb a decline in the popularity of science amongchildren, DIC and DIC Graphics conduct visiting science labs at public elementary
schools. Through this program, which focuses on, among others, experiments inpigment synthesis and offset printing, the Group seeks to spark children’s interest inscience and encourage them to realize the close relationship between science andtheir everyday lives.
,Q¿VFDO\HDUWKH',&*URXS¶VYLVLWLQJVFLHQFHODESURJUDPZDVQRPLQDWHG
and won silver in the category of initiatives chosen by elementary school students
LQWKH(GXFDWLRQ6XSSRUW*UDQG3UL[ IRUPHUO\WKH&65,QLWLDWLYH$ZDUGLQ(GXFDWLRQ VSRQVRUHGE\7RN\REDVHG/HDYHD1HVW&R/WG$WWKHUHTXHVWRI
7RN\R8QLYHUVLW\RIWKH$UWVDQG$LFKL8QLYHUVLW\RIWKH$UWVWKH*URXSDOVRKHOG
labs for undergraduate and graduate students at both universities.

Visiting science lab at Tokyo
8QLYHUVLW\RIWKH$UWV',&¶V(GXFDWLRQ6XSSRUW*UDQG3UL[FHUWL¿FDWH

Comment

Collaboration between industry and academia is crucial to fostering human resources and advancing technology.
When I heard that DIC conducted visiting science labs at elementary schools on themes related to pigments, I asked the Company
ZKHWKHUWKH\ZRXOGFRQVLGHUPRGLI\LQJODEFRQWHQWWRPDNHLWVXLWDEOHIRUVWXGHQWVVWXG\LQJ¿QHDUWVDQGFRQGXFWLQJYLVLWLQJODEVDW
7RN\R8QLYHUVLW\RIWKH$UWVDQG$LFKL8QLYHUVLW\RIWKH$UWV$NQRZOHGJHRIPDWHULDOVLVLPSRUWDQWWRWKHIXWXUHRIWKHVHVWXGHQWVVRWKH
SXUSRVHRIWKHODEZDVWRSURPRWHXQGHUVWDQGLQJRIWKHIDFWWKDWPRVWRIWKHSLJPHQWVXVHGLQPRGHUQGD\SDLQWVDUHFUHDWHGXVLQJWKH
power of science. For students, a visiting science lab conducted by people from a major corporation is a valuable opportunity to obtain a
YDULHW\RILQIRUPDWLRQIURPDGLIIHUHQWSHUVSHFWLYHWKDQWKDWRIWKHLUXVXDOFODVVHV,DPD¿UPEHOLHYHUWKDWFROODERUDWLRQEHWZHHQLQGXVWU\
and academia is crucial to fostering human resources and advancing technology.
Associate Professor, Tokyo University of the Arts Takayuki Akimoto

Initiatives Led by the Central Research Laboratories

7KH&HQWUDO5HVHDUFK/DERUDWRULHVRIIHUVDYDULHW\RISURJUDPVLQVXFKXQLTXHO\',&WRSLFVDVV\QWKHVLVDQG
FKURPDWLFVWRWKHVWXGHQWVRIORFDOVFKRROV,Q6HSWHPEHUDQG'HFHPEHUUHVSHFWLYHO\VWXGHQWVIURP&KLED3UHIHFWXUDO6DNXUD+LJK6FKRRODQG6HLVKLQ*DNXHQ+LJK6FKRROLQ,EDUDNL3UHIHFWXUHERWKRIZKLFKKDYHHDUQHG
WKHGHVLJQDWLRQ6XSHU6FLHQFH+LJK6FKRRO ZHUHLQYLWHGWRWKH&HQWUDO5HVHDUFK/DERUDWRULHVWRSDUWLFLSDWHLQDODEOHVVRQRQWKHWKHPHRI³V\QWKHVLVDQGFUDIWVPDQVKLS´/HGE\UHVHDUFKHUVIURPWKHIDFLOLW\WKHHYHQW²ZKLFKWRRNSODFHLQDUHVHDUFKODERUDWRU\²LQFOXGHGDQLQWURGXFWLRQWRUHVHDUFKFRQGXFWHGXVLQJVWDWHRIWKHDUWDQDO\WLFDOHTXLSPHQWDKDQGVRQOHVVRQRQWKHXVHRIVDLGDQDO\WLFDOHTXLSPHQWDODELQZKLFKVWXGHQWVH[SHULPHQWHGZLWK
synthesizing organic pigments and a lecture on DIC products, and was designed to help students better understand
WKHFRQFHSWRIFUDIWVPDQVKLSDVLWSHUWDLQVWRVFLHQFH/HFWXUHUVDOVRLQFRUSRUDWHGDFDUHHUHGXFDWLRQFRPSRQHQW
into the event, taking time to talk to interested students about the challenges and rewards of being a researcher.
6XSHU6FLHQFH+LJK6FKRROLVDGHVLJQDWLRQDZDUGHGE\-DSDQ¶V0LQLVWU\RI(GXFDWLRQ&XOWXUH6SRUWV6FLHQFHDQG7HFKQRORJ\ 0(;7 WRVHQLRUKLJKVFKRROVWKDWLPSOHPHQWFXUULFXODIRFXVHGRQWKHVFLHQFHVDQGPDWKHPDWLFVWKDWJRHVEH\RQGWKH0LQLVWU\¶VRI¿FLDOJXLGHOLQHVZLWKWKHDLPRIIRVWHULQJWKHQH[WJHQHUDWLRQRIWDOHQWHGHQJLQHHUVDQGVFLHQWLVWV

45̲ DIC Report 2016

/DEOHVVRQIRU&KLED3UHIHFWXUDO6DNXUD+LJK6FKRROVWXGHQWVDWWKH&HQWUDO5HVHDUFK/DERUDWRULHV

Core and CategorySpecific Themes
Themes that Demonstrate
Unique Capabilities

7KH.DZDPXUD0HPRULDO',&0XVHXPRI$UWORFDWHGDGMDFHQWWRWKH&HQWUDO5HVHDUFK/DERUDWRULHVLQ6DNXUD&KLED3UHIHFWXUHZDVHVWDEOLVKHGLQWRSXEOLFO\H[KLELWZRUNVRIDUWFROOHFWHGE\',&&RUSRUDWLRQDQGLWVDI¿OLDWHV,QWKHPXVHXPFHOHEUDWHGLWVWKDQQLYHUVDU\7KHPXVHXPH[KLELWVZRUNVIURPDFROOHFWLRQWKDWVSDQVQXPHURXVJHQUHVZLWKDIRFXVRQWKFHQWXU\$PHULFDQDUWDQG
HQFRPSDVVHVZRUNVE\5HPEUDQGW,PSUHVVLRQLVWVVXFKDV0RQHWDQG5HQRLUPRGHUQ(XURSHDQDUWLVWVVXFKDV3LFDVVRDQG&KDJDOO
DQGHDUO\PRGHUQPRGHUQDQGSRVWZDU-DSDQHVHDUWLVWV7ZRH[KLELWLRQVDUHVFKHGXOHGIRUSKRWRJUDSKVWDNHQE\&\7ZRPEO\RQHRIWKHPRVWDFFODLPHGDUWLVWVRIWKHWKFHQWXU\DQGZRUNVE\FHOHEUDWHGSDLQWHUDQGSULQWPDNHU/pRQDUG)RXMLWD
,QDGGLWLRQWRLWVVWDQGLQJH[KLELWIURPLWVSHUPDQHQWFROOHFWLRQRIPRUHWKDQPDMRUZRUNVWKHPXVHXPVWDJHVVSHFLDOH[KLELWLRQVseveral times a year that focus on pertinent literary works and other artifacts that evoke the cultural atmosphere at the time works were
FUHDWHGWRKHOSYLVLWRUVEHWWHUXQGHUVWDQGWKHFROOHFWLRQ$QRWKHUDSSHDOLQJDVSHFWRIWKH.DZDPXUD0HPRULDO',&0XVHXPRI$UWLVLWV
ORFDWLRQRQDOXVKO\IRUHVWHGKHFWDUHVLWHDOLYHZLWKVHDVRQDOÀRZHUVDQGIROLDJHWKDWKDVEHHQRSHQWRWKHSXEOLFVLQFHWKHPXVHXP¶V
establishment. In cooperation with the Chiba Biodiversity Center, the museum has also established a biodiversity satellite, a special
display area featuring display panels explaining the importance of biodiversity, in one of the site’s rest cabins.
In a move aimed at promoting relations with the local community and fostering local cultural activities, the museum has established anannex gallery on the museum site. This facility, which serves as an exhibition space for local amateur artists, is also made available once
D\HDUWRHOHPHQWDU\DQGMXQLRUDQGVHQLRUKLJKVFKRROVLQWKH6DNXUDDUHDIRUDQH[KLELWLRQRIORFDOVWXGHQWV¶ZRUNV7KH.DZDPXUD
0HPRULDO',&0XVHXPRI$UWDOVRDFFHSWVORFDOMXQLRUKLJKVFKRROVWXGHQWVIRUZRUNH[SHULHQFHSURJUDPVDQGZHOFRPHVHOHPHQWDU\and junior high school art classes, led by teachers, for museum tours, with the goal of further supporting art education.

Basic Themes

Kawamura Memorial DIC Museum of Art.DZDPXUD0HPRULDO',&0XVHXPRI$UW

Matching Gift Program

DIC has a matching gift program whereby it matches
WKHWRWDODPRXQWFROOHFWHGWKURXJKDQDQQXDO\HDUHQG
fundraising drive spearheaded by its employees’ union.
)XQGVUDLVHGWKURXJKWKHGULYHDQGPDWFKLQJJLIWSURJUDPZHUHGRQDWHGWRFKLOGUHQ¶VKRPHVDQGIDFLOLWLHV
providing support for disabled individuals.

',&HPSOR\HHVYLVLWFKLOGZHOIDUHIDFLOLW\5\X\RXHQLQ.RPDNL$LFKL3UHIHFWXUHWRSUHVHQWDGRQDWLRQ

1DWXUHWUDLOWUDYHUVLQJWKHPXVHXPVLWH

Support for Reconstruction Following the Great East Japan Earthquake

6LQFH',&KDVSURYLGHGVXSSRUWIRUUHFRQVWUXFWLRQLQDUHDVGHYDVWDWHGE\WKH*UHDW(DVW-DSDQ(DUWKTXDNH
DVDSDUWLFLSDQWLQWKH,332,3321,3321SURMHFW
an initiative organized by the Keizai Doyukai -DSDQ$VVRFLDWLRQRI&RUSRUDWH([HFXWLYHV ZLWKWKHDLPRI
assisting local residents in rebuilding their lives. Thisinitiative, which is scheduled to continue for five years,
seeks to support efforts to rebuild communities andstimulate local economies by delivering funds collectedfrom corporate and individual donors directly to schools
and other facilities in needof support.
DIC has also donated
IXQGVYLDWKH-DSDQHVH5HG
&URVV6RFLHW\WRDVVLVWZLWKrecovery efforts in the wake
RI WKH  .XPDPRWR(DUWKTXDNH
,332,3321,3321SURMHFWORJR

DIC Report 2016 ̲46

Related information

Promoting Disclosure andCommunication

WEB

Basic Themes

Communication with Stakeholders

http://www.dic-global.com/
en/csr/stakeholder

Ties with customers

Basic approach

Communications tools

Opportunities forcommunication

Build trusting relationships. By
incorporating the demands ofcustomers, seek to develop
products that enhance customer
satisfaction.

Ties with shareholders
and investors

Ties with society

Ties with employees

Ties with the media

Ensure appropriate disclosureand build trusting relationships
with shareholders andinvestors, encouraging both toevaluate DIC as an attractive
investment.

Operate in harmony with thecommunity and build positive
relationships with local
residents that will underpin
the long-term sustainabilityof operations.

Provide workplaces that are
conducive to job satisfactionand enable all employeesWRIXO¿OOWKHLUSRWHQWLDO2YHU
the long term, achieve true
diversity.

Deepen mutual
understanding throughe f f e c t i v e p u b l i c i t y,
advertising and othercommunications efforts.

● Websites● Site reports● &RUSRUDWHSUR¿OH'9'V● DIC Report● DIC Plaza● Press conferences● Interviews with journalists● DIC Report● Websites● Product pamphlets● Corporate profile● Websites● Press conferences● Annual report● Quarterly results● DIC Report●Yuka Shoken Hokokusho

DVDsannouncements

exhibitions● General shareholders’meetings● Results presentations● IR conferences● IR meetings● DIC IR Day

Ties with Customers

DIC Graphics’ 2015 private show
(corporate headquarters) LQKRXVH*URXSGDWD¿OH ● DIC Report(¿QDQFLDOGLVFORVXUHGRFXPHQWUHTXLUHG
of listed companies in Japan)● Shareholder newsletters● &RUSRUDWHSUR¿OH'9'V● DIC Report● Sales activities● Participation in

DIC’s booth at the European Coatings Show
(Nuremberg, Germany)(in-house newsletter)● Intranet● DIC Pocket Book

● Production facility tours● Participation in projects involving

collaboration among industrial
concerns, government bodies andacademic institutions● Participation in community events● Environmental monitoring● Labor–management councils● Results presentations● Newspapers● Economic publications● Industry publications

for employees● Presentations on the DIC
Group Code ofBusiness Conduct● Sustainability presentations

Communications in the
Field of Education

Ties with Society

DIC’s display at the
Itabashi Public Library(Takashimadaira, Tokyo)

SAKURAart exhibit at the Kawamura Memorial
DIC Museum of Art

Ties with the Media
Presentation on sustainability
initiatives for guests(Tokyo Plant)$ZDUGFHUWL¿FDWHIURPWKH$OO
Japan Calendar Competition

Ties with Shareholders
and Investors

Results presentation(February 2015)47̲ DIC Report 2016

Press conferences
LQÀVFDO\HDU

Interviews withjournalists
LQILVFDO\HDU

59

89

Ties with Employees

DIC IR Day(September 2015)

Results presentation for employees(February 2015)6XQÀRZHUVHHGSODQWLQJDQGDUW
appreciation event(Kawamura Memorial DIC Museum of Art)

DIC Plaza

Themes that Demonstrate
Unique Capabilities

The DIC Group places a priority on communication with its stakeholders worldwide through direct dialogue in the form of, among
others, participation in exhibitions, websites and events. By communicating effectively with stakeholders, the Group strives to
HQVXUHDQDGHTXDWHXQGHUVWDQGLQJRIVWDNHKROGHUH[SHFWDWLRQVDQGWRUHÀHFWVXFKH[SHFWDWLRQVLQLWVEXVLQHVVDFWLYLWLHV7KH',&
Group is also expanding its awareness of the concept of stakeholder engagement, a key requirement under ISO 26000.

Core and CategorySpecific Themes

Basic Approach to Promoting Communication

Third-Party Verification

The DIC Group commissioned SGS Japan Inc. to conduct third-party verification of its data forgreenhouse gas emissions, discharge of industrial waste and number of occupational accidents (including
number of accidents leading to workdays lost).

DIC Report 2016 ̲48

DIC Group Milestones
1957

1925

Enters the market for helmets andother molded plastic products

Begins production of organic pigments
Develops production method for organic pigments
and begins production for its own use, the first step inits evolution as a fine chemicals manufacturer.

Kawamura Ink
Manufactory
Established by Kijuro Kawamura
as Kawamura Ink Manufactory;
adopts the dragon as its
product trademark and begins
manufacturing inks.

1940
Dragon product trademark

Commences production ofwater-based gravure inks
Amid wartime restrictions on use of volatile oils, develops
water-based gravure inks—one of several achievementsthat would later facilitate expansion into synthetic resins.

D I C の 歩 み

108 Years of Achievement

創 業 か ら 1 0 7 年

1908
Established asEnters the plastic products business with the aim of becoming an
integrated manufacturer with operations encompassing productionof everything from plastic raw materials to finished products.

1962

Changes Company nameto Dainippon Ink and Chemicals
Embarks on a new chapter in its history by absorbing
Japan Reichhold Chemicals, Inc., and changes
Company name to Dainippon Ink and Chemicals
Incorporated (DIC).

1952

Makes full-scale entry into thesynthetic resins business
Establishes Japan Reichhold Chemicals Inc., then thesecond-largest joint venture with an overseas firm in thehistory of the Japanesechemicals industry,
and makes a full-scale
entry into the synthetic
resins business.

DIC s previous
corporate symbol

1968
DIC’s founder, Kijuro Kawamura

Commences sales of the
DIC Color Guide ®

Reichhold Chemicals’
San Francisco plant

Launches the DIC Color Guide®, which becomes the defacto standard for color selection in numerous industries,
bolstering recognition of the DIC name.

1915

Commences production of offset printing inks
Becomes one of the first companies to conduct
research in the area of offset printing inks and succeeds
in producing a viable product in only one year.

Diversiﬁes operations by building onbase in printing inks, organic pigments
and synthetic resins

Actively introduces technologies
from overseas and promotes
further diversification

2006

1990

Opens Kawamura
Memorial Museum of Art

1973

Establishes theEnvironment and Safety
Response Department
Creates department under the directsupervision of DIC’s president to oversee
safety and environmental initiatives(today’s Responsible Care Department);
creates Environment and Safety
Management Regulations and Interim
Emergency Countermeasures Department
and begins promoting decisive efforts,
including the implementation of plantsafety inspections.

49̲ DIC Report 2016

Located in Sakura,Chiba Prefecture,adjacent to the Central ResearchLaboratories; established to exhibit works
of art collected by DIC and DIC Group
companies; now called the Kawamura
Memorial DIC Museum of Art.

1995

Declares intention to uphold theprinciples of Responsible Care

Takes an active role in the Responsible
Care movement since the start as one of
74 founding members of the Japan
Responsible Care Council (JRCC);
reinforces efforts to, among others, reduce
negative environmental impact ofoperations and lower energy consumption.

Becomes signatory to the
Responsible Care Global Charter
Signs the CEO’s Declaration of Support for
the Responsible Care Global Charter,
established by the International Council of
Chemical Associations, as befits its status asa member of the global community of finechemicals manufacturers.

Certiﬁcation of DIC as Signatory to
the Responsible Care Global Charter

Sustainability Initiatives

Promotes expansion of
printing inks business

DIC Color Guide ®

2009

1970

1999

Establishes Crown Zellerbach Packaging Materials Japan
Co., Ltd., in a joint venture with Crown Zellerbach
Corporation of the United States and Nippon Kakoh Seishi
Co., Ltd., and enters the multilayered films business.

Amid rising awareness of environmental issues, develops
Japan’s first organic solvent-free sheetfed offset ink.

Enters the multilayered films businessEnters themarket for LCs

Establishes DIC Graphics Corporation
In October 2009, establishes a joint venture with Dai Nippon
Printing Co., Ltd. subsidiary The Inctec Inc. and integrates its
domestic printing inks business with the printing inks
business of The Inctec.

2015

New Champion
Naturalith 100
organic solvent-free
sheetfed offset ink

1973

Develops revolutionary
h i g h - p e r f o r m a n c e,
long-lasting nematicLCs, commencing its
evolution into one of
the world’s foremost
manufacturers of LCs.

Succeeds in developing 100% soybean
oil-based printing ink

Completes reconstruction of corporate
headquarters in Nihonbashi
In May 2015, completes the reconstruction of its corporate
headquarters—the DIC Building—in Nihonbashi, Tokyo, the role ofwhich was expanded to include oversight of the global DIC Group.

1999

Acquires Coates, the printing inks
division of France’s TOTALFINA
Establishes presence in India, Central and South America
and elsewhere by acquiring the Coates Group fromTOTALFINA S.A., France’s largest oil company.

Nematic LCs

1986

Acquires the graphic arts materials division of
Sun Chemical Corporation of the United States

2008

Becomes world’s largest
manufacturer of printing
inks in terms of market
share and a leading namein the graphic arts materials
business.

Changes Company nameto DIC Corporation

DIC Building

Marks centennial anniversary by changing Company name to
DIC Corporation and adopting a new corporate symbol.

Sun Chemical’s headquarters

2016

Launches DIC108 medium-term
management plan
Sets forth a growth scenario aimed at realizing sustainable growthand outlines what DIC must do between now and fiscal year 2018.

DIC’s new corporate symbol

Seeks to advance globalization ofcore businesses and diversify into new areas

Takes steps to advance environmental
protection and expands global presence

2010

2014

In December 2010, becomes a participant in
the United Nations Global Compact, with theaim of maintaining its reputation as a socially
responsible corporate entity.

Clarifies its overall policy of achieving sustainability
in a manner that takes into account, among others,
the environment, ecosystems and socioeconomic
issues, and changes the designation used across its
program from “CSR” to “sustainability.”

Launches CSR program
Begins promoting CSR initiatives;
identifies fulfilling its responsibilities as amember of society through its businessactivities and contributing to the evolutionof society as the cornerstones of CSR.

Changes designation to“sustainability”

In-house poster promoting sustainability initiatives

Joins United Nations
Global Compact

2007

Prepares for a new phaseof growth

2015

Selected for inclusion in the
Dow Jones Sustainability
Indices Asia Pacific Index
Included for the first time in the DJSI
Asia Pacific Index, a global family of
indices for socially responsible investing
and a benchmark of global sustainability.

DIC Report 2016 ̲50

CORPORATE DATA
Corporate Data

Consolidated Financial Highlights

Registered name:

DIC Corporation

Registered address:

35-58, Sakashita 3-chome, Itabashi-ku,
Tokyo 174-8520, Japan

Corporate
headquarters：

DIC Building, 7-20, Nihonbashi 3-chome,
Chuo-ku, Tokyo 103-8233, Japan
Tel: +81-3-6733-3000

Net sales
Operating income
Ordinary income
Net income
Earnings per share (yen)Total assets

Date of foundation： February 15, 1908

¥830,078
41,07639,92525,19426.78
803,703¥819,999
51,06848,99537,394
38.94
778,857200
0174 (Domestic: 31, Overseas: 143)

’11 ’12 ’13 ’14 ’15（FY）
※

51.1

41.1

20

40.2

Domestic facilities： Two branch ofﬁces and nine plants

38.5

30

400

35.0

40

600

820.0

50

800

830.1

20,264 (Nonconsolidated: 3,581)

Operating Income (Billions of yen)

1,000

705.6

¥96.6 billion

703.8

Paid-in capital：(Billions of yen)

Net Sales

734.3

March 15, 1937

Number ofsubsidiaries
and afﬁliates：

Fiscal year 2015
(Year ended
December 31, 2015)

Millions of yen, except for per share information

Date ofincorporation：

Number of
employees：

Fiscal year 2014
(Year ended
December 31, 2014)10
0’11 ’12 ’13 ※ ’14 ’15（FY）

Note: The consolidated results for ﬁscal year 2013 comprise the accounts for the nine months ended
December 31, 2013, of DIC and its domestic subsidiaries but one and the 12 months ended
December 31, 2013, of its overseas subsidiaries and one domestic subsidiary.
(Information is as of December 31, 2015.)

Executive Ofﬁcers

Board of Directors
Representative Director

Yoshiyuki Nakanishi

Representative Director

Masayuki Saito

Director

Yoshihisa Kawamura

Director

Hitoshi Wakabayashi

Director

Kaoru Ino

Director

Takao Suzuki*

Director

Yukako Uchinaga**

OutsideCorporate Auditors
Corporate Auditor

Jiro Mizutani

President and CEO

Yoshiyuki Nakanishi

Executive Ofﬁcer

Rudi Lenz

Executive Vice President

Masayuki Saito

Executive Ofﬁcer

Hideki Inouchi

Managing Executive Ofﬁcer

Yoshiaki Masuda

Executive Ofﬁcer

Masaya Nakafuji

Managing Executive Ofﬁcer

Toshio Hasumi

Executive Ofﬁcer

Koji Tanigami

Managing Executive Ofﬁcer

Hitoshi Wakabayashi

Executive Ofﬁcer

Shinsuke Toshima

Managing Executive Ofﬁcer

Kazunari Sakai

Executive Ofﬁcer

Sakae Yoshida

Managing Executive Ofﬁcer

Hideo Ishii

Executive Ofﬁcer

Taihei MukoseManaging Executive Ofﬁcer

Masami Hatao

Executive Ofﬁcer

Kiyotaka Kawashima

Managing Executive Ofﬁcer

Kaoru Ino

Executive Ofﬁcer

Masanobu Mizukoshi

Toshifumi Tamaki

Executive Ofﬁcer

Hiroyuki Ninomiya

Naoyoshi Furuta

Executive Ofﬁcer

Kazuo Hatakenaka

Corporate Auditor

Yoshiyuki Mase

Managing Executive Ofﬁcer

Corporate Auditor

Katsunori Takechi*

Executive Ofﬁcer

Corporate Auditor

Cindy Yoshiko Shirata*(Information is as of March 29, 2016.)* Outside

Headquarters/Branches in Japan
Corporate Headquarters
Headquarters
DIC Building, 7-20, Nihonbashi 3-chome,
Chuo-ku, Tokyo 103-8233, Japan
Tel: +81-3-6733-3000

Branch Ofﬁces
Osaka
5-19, Kyutaro-machi 3-chome, Chuo-ku, Osaka 541-8525, Japan
Tel: +81-6-6252-6161 Fax: +81-6-6245-5239
Nagoya7-15, Nishiki 3-chome, Naka-ku, Nagoya 460-0003, Japan
Tel: +81-52-951-9381 Fax: +81-52-962-3591

Chiba
12, Yawatakaigandori, Ichihara, Chiba 290-8585, Japan
Tel: +81-436-41-4141 Fax: +81-436-43-1059
Hokuriku
64-2, Minatomachi-So, Hakusan, Ishikawa 929-0296, Japan
Tel: +81-76-278-2332 Fax: +81-76-278-5354
Sakai
3, Takasago 1-chome, Takaishi, Osaka 592-0001, Japan
Tel: +81-72-268-3111 Fax: +81-72-268-1705
Kashima18, Higashifukashiba, Kamisu, Ibaraki 314-0193, Japan
Tel: +81-299-93-8111 Fax: +81-299-92-6384

PlantsYokkaichi
5, Kasumi 1-chome, Yokkaichi, Mie 510-0011, Japan
Tel: +81-59-364-1151 Fax: +81-59-364-1620

Tokyo
35-58, Sakashita 3-chome, Itabashi-ku, Tokyo 174-8520, Japan
Tel: +81-3-3966-2111 Fax: +81-3-3965-4320

Komaki151-1, Nagare, Shimosue, Komaki, Aichi 485-0825, Japan
Tel: +81-568-75-2751 Fax: +81-568-73-4120

Saitama
4472-1, Komuro, Ina-machi, Kita-Adachi-gun, Saitama
362-8577, Japan
Tel: +81-48-722-8211 Fax: +81-48-722-6087
Tatebayashi
6023, Tobukogyodanchi, Ohshima-cho,Tatebayashi, Gunma 374-0001, Japan
Tel: +81-276-77-2461 Fax: +81-276-77-2468

Laboratories
Central Research Laboratories
631, Sakado, Sakura, Chiba 285-8668, Japan
Tel: +81-43-498-2121 Fax: +81-43-498-2229

Art Museum
Kawamura Memorial DIC Museum of Art
631, Sakado, Sakura, Chiba 285-8505, Japan
Tel: +81-43-498-2672 Fax: +81-43-498-2139(Information is as of March 31, 2016.)

51̲ DIC Report 2016

Principal Domestic Subsidiaries and Affiliates
Cast Film Japan Co., Ltd.
DC Katsuya Co., Ltd.
DIC Covestro Polymer Ltd.
DIC Color Coatings, Inc.
DIC Color Design, Inc.
DIC Decor, Inc.
DIC EP Corp.
DIC Estate Co., Ltd.
DIC Graphics Corporation
DIC Interior Co., Ltd.
DIC Investments Japan, LLC.

DIC Kako, Inc.
DIC Kitanihon Polymer Co., Ltd.
DIC Kyushu Polymer Co., Ltd.
DIC Lifetec Co, Ltd.
DIC Machinery & Printer s Supplies, Inc.
DIC Material Inc.
DIC Plastics, Inc.
Hamamatsu DIC Co., Ltd.
Japan Formalin Company, Inc.
KJ Chemicals Corporation
Mizushima Kasozai Co., Ltd.

Nippon Epoxy Resin ManufacturingCo., Ltd.
Oxirane Chemical Corp.
Renaissance, Inc.
Seiko PMC Corporation
SUNDIC Inc.
Techno Science, Inc.
Topic Co., Ltd.
YD Plastics Co., Ltd.

(Information is as of March 31, 2016.)

Principal Overseas Subsidiaries and Affiliates
Asia and Oceania (Excluding Japan)

Sun Chemical (Hai an) Limited

Aekyung Chemical Co., Ltd.

Sun Chemical Holding (Hong Kong) Ltd.

Unipessoal Ltda.

Changzhou Huari New Material Co., Ltd.

Sun Chemical Trading (Shanghai) Co., Ltd.

Sun Chemical Printing Ink d.o.o.

DIC Alkylphenol Singapore Pte., Ltd.

Suqian Lintong New Materials Co., Ltd.

Sun Chemical Publication A.E.

DIC Asia Paciﬁc Pte Ltd

Suzhou Lintong Chemical Science Corp.

Sun Chemical Publication Romania S.R.L.

DIC Australia Pty Ltd.

TOA-DIC Zhangjiagang Chemical Co., Ltd.

Sun Chemical Publications Bulgaria EAD

DIC (China) Co., Ltd.

Zhongshan DIC Colour Co., Ltd.

Sun Chemical S.A.

Sun Chemical Portugal-Tintas Graﬁcas

Sun Chemical S.A.S.

DIC Colorants Taiwan Co., Ltd.
DIC Compounds (Malaysia) Sdn. Bhd.

Europe and Africa

Sun Chemical (South Africa) (Pty) Ltd.

DIC Epoxy (Malaysia) Sdn. Bhd.

Benda-Lutz Skawina Sp. z.o.o.

Sun Chemical s.r.l.

DIC Fine Chemicals Private Limited

Benda-Lutz Volzhsky ooo

Sun Chemical, s.r.o.

DIC Graphics (Guangzhou) Ltd.

Benda-Lutz Werke GmbHSun Chemical, s.r.o.

DIC Graphics (Hong Kong) Ltd.

Coates Brothers (East Africa) Ltd.

Sun Chemical Sp. z.o.o.

DIC Graphics (Thailand) Co., Ltd.

Coates Brothers (West Africa) Ltd.

Sun Chemical Turkey

DIC Graphics Chia Lung Corp.

Coates Screen Inks GmbHSun Chemical Ukraine Ltd.

DIC (Guangzhou) Co., Ltd.

DIC Europe GmbHSun Chemical ZAO

DIC India Ltd.

DIC Holdings Austria GmbHSun Inkjet Ceramics, S.L.

DIC Korea Corp.

DIC Holdings B.V.

DIC Korea Liquid Crystal Co., Ltd.

DIC Performance Resins GmbH

North, Central and South America

DIC Lanka (Private) Ltd.

ECG Holdings Ltd.

Benda-Lutz Corporation

DIC (Malaysia) Sdn. Bhd.

Gibbon FineCal Ltd.

Camus Water Technologies LLC

DIC New Zealand Ltd.

Glenside Properties Limited

Coates Brothers (Caribbean) Ltd.

DIC Pakistan Ltd.

Hartman D.O.O.

DIC Imaging Products USA, LLC

DIC Philippines, Inc.

Hartmann Druckfarben GmbHDIC International (USA), LLC

DIC (Shanghai) Co., Ltd.

Hartmann-Sun Chemical EOOD

Earthrise Holdings Inc.

DIC Synthetic Resins (Zhongshan) Co., Ltd.

Kingfisher Colours Ltd.

Earthrise Nutritionals, LLC.

DIC (Taiwan) Ltd.

Lorilleux Maroc S.A.

Inmobiliaria Sunchem, S.A. de C.V.

DIC Trading (HK) Ltd.

Parker Williams Design Ltd.

Mondis Manufacturers Insurance

DIC (Vietnam) Co., Ltd.

Sun Branding Solutions Ltd.

DIC Zhangjiagang Chemicals Co., Ltd.

Sun Chemical AB

Guangzhou Lidye Resin Co., Ltd.

Sun Chemical AG

Corp.

Hainan DIC Microalgae Co., Ltd.

Sun Chemical AG (S.A., Ltd.)

Rycoline Products, LLC

Kangnam Chemical Co., Ltd.

Sun Chemical A/SSC Funding LLC

Lianyungang DIC Color Co., Ltd.

Sun Chemical A/S

SC (Puerto Rico) Ink

Lidye Chemical Co., Ltd.

Sun Chemical B.V.

Sinclair International Inc.

Nantong DIC Color Co., Ltd.

Sun Chemical d.o.o.

Sinclair S.A.S.

Nantong Shan Kai Ming Ke Trading Co., Ltd

Sun Chemical for Graphic Arts S.A.E.

Sinclair Sun Chemical Ecuador S.A.

PT DIC ASTRA Chemicals

Sun Chemical GmbHSun Chemical (Chile) S.A.

PT. DIC Graphics

Sun Chemical Group Coöperatief U.A.

Sun Chemical Corporation

P.T. Pardic Jaya Chemicals

Sun Chemical Group S.p.A.

Sun Chemical de Centro America, S.A. de C.V.

Qingdao DIC Finechemicals Co., Ltd.

Sun Chemical Holding B.V.

Sun Chemical de Panama, S.A.

Qingdao DIC Liquid Crystal Co., Ltd.

Sun Chemical Inks Ltd.

Sun Chemical do Brasil Ltda.

Samling Housing Products Sdn. Bhd.

Sun Chemical Inks A/S

Sun Chemical Inks S.A.

Seiko PMC (Shanghai) Commerce &Sun Chemical Lasfelde GmbHSun Chemical Ltd.

Trading Corp.

Sun Chemical Ltd.

Sun Chemical Management, L.L.C.

Seiko PMC (Zhangjiagang) Corporation

Sun Chemical N.V./S.A.

Sun Chemical of Michigan LLC

Shanghai DIC Ink Co., Ltd.

Sun Chemical Nyomdafestek Kereskedelmi

Sun Chemical Peru S.A.

Shanghai DIC Pressure-Sensitive

es Gyarto KFT (Sun Chemical KFT)

Sun Chemical S.A. de C.V.

Adhesive Materials Co., Ltd.

Sun Chemical Osterode Druckfarben GmbHSun Chemical Venezuela C.A.

Shenzhen-DIC Co., Ltd.

Sun Chemical Oy

Tintas S.A.S.

Siam Chemical Industry Co., Ltd.

Sun Chemical Pigments S.L.

Wiseman International Co., Ltd.

Company N.V.
New England Manufacturers Insurance(Information is as of March 31, 2016.)

DIC Report 2016 ̲52