DIC REPORT 2021
The DIC Group Integrated Report

“The DIC Way” was formulated to represent the
DIC Group’s fundamental management philosophy.
In line with The DIC Way, the DIC Group willcontinue to promote efforts aimed at enhancing
corporate value and achieving sustainable growth.

The DIC Way
MissionWe create enhanced value and utilize innovation to
introduce socially responsible and sustainable products.

MissionVisionColor & Comfort by Chemistry
We improve the human condition by safely bringing
color and comfort into people’s lives.*

Core Values
Enterprising: Lead with a passion for excellence that is evident in thesolution-focused actions taken each day to drive value through innovation.*Core Values

Enterprising

VisionIntegrity

Integrity: Be honest, forthright, and ethical in all dealings with customers,
suppliers, and coworkers.*
Dedication & Loyalty: Take responsibility for performance in the ofﬁce,
laboratory, and factory, by demonstrating commitment to customers,
suppliers, and coworkers.*
Diversity: Respect other viewpoints and work collaboratively whilevaluing collective goals over personal interests to achieve excellence;
foster communication and cooperation with people from all backgrounds.*
Social Responsibility: Go beyond compliance to promote products andactivities that achieve socially responsible and sustainable developmentthat protects the environment.**Annotation1̲ DIC Report 2021

Sustainability
Dedication & Loyalty

Company

Diversity

Social Responsibility

Society

&RQQHFWLQJWKH',&*URXSDQGLWV6WDNHKROGHUV',&*URXS&RPPXQLFDWLRQV7RROVThe DIC Group uses a variety of tools to promote communication withits many stakeholders to encourage greater awareness of the Group’s
activities. More detailed sustainability-related information and data canbe found on the DIC global website.

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Reports on activities',&5HSRUW',&5HSRUW VXPPDU\YHUVLRQ FRPSOHWHYHUVLRQ',&5HSRUW)LQDQFLDO6HFWLRQ

Contents
The DIC Group: A Global Powerhouse)LQDQFLDODQG1RQÀQDQFLDO,QIRUPDWLRQ$0HVVDJHIURPWKH3UHVLGHQW
<HDU6XPPDU\$0HVVDJHIURPWKH&)2
7KH',&*URXS·V$SSURDFKWR9DOXH&UHDWLRQ
Fiscal Year 2020 DIC Group Topics
7KH',&*URXS·V%XVLQHVV3RUWIROLR
Packaging & Graphic
Color & Display
Functional Products

3
5
7
12
13
15
17

19
21
23

3URGXFW'HYHORSPHQW'HVLJQHGWR&UHDWH1HZ9DOXH
Employing Chemical Recycling to Realize a Closed-Loop Recycling System
for Polystyrene Food Containers
Nashiji Film Made with Biomass Plastic (DIFAREN ® A7440Bio)
An FFC that Improves the Skin’s Barrier Function from the Inside Out(PHYCONA Skin Moistlifting Tablets)
Special Feature

Summary integrated
report (published annually)(printed publication)

Complete report(published annually)(PDF-form publication)

Report on resultsof operations and¿QDQFLDOFRQGLWLRQ
(published annually)(PDF-form publication)

25
27
29

Activities',&*OREDO:HEVLWH

Real-time information
https://www.dic-global.com/en/

Umbrella website providing information to
the global public about the DIC Group andreports on its various activities; updated
as necessary$ERXWWKLV5HSRUWIn previous years, the DIC Group published a combined corporate
profile and sustainability report with the aim of presenting a clear,easy-to-understand picture of the Group and its sustainability
initiatives. Since 2017, the Group has published the DIC Report as an
LQWHJUDWHGUHSRUWZKLFKFRPELQHV¿QDQFLDOLQIRUPDWLRQHQFRPSDVVLQJ
consolidated operating results and corporate strategies, andQRQ¿QDQFLDO VXVWDLQDELOLW\ LQIRUPDWLRQ7KH*URXSKDVSXEOLVKHGDVLPSOL¿HGVXPPDU\YHUVLRQRIWKHUHSRUW SULQWHG ZKLFKIRFXVHVRQ
key highlights, and a more detailed complete version (PDF), whichcontains extensive quantitative data.
',&5HSRUW &RPSOHWHYHUVLRQ  3')IRUPSXEOLFDWLRQ

https://www.dic-global.com/en/csr/annual/Note: $VXVHGKHUHLQWKHWHUP³$VLD±3DFL¿FUHJLRQ´²DJHRJUDSKLFGHVLJQDWLRQWKDWOLNH³(XURSHDQGWKH$PHULFDV´DQG
³*UHDWHU&KLQD´UHSUHVHQWVDJURXSLQJRIFRPSDQLHVRYHUVHHQE\DUHJLRQDOKHDGTXDUWHUV²UHIHUVWR$VLD H[FOXGLQJ-DSDQDQG*UHDWHU&KLQD DQG2FHDQLD7KHWHUP³$VLDDQG2FHDQLD´UHIHUVWR$VLD H[FOXGLQJ-DSDQ DQG2FHDQLD

/LQNZLWKWKH',&*OREDO:HEVLWH
The () mark indicates that more detailed information and/or
data can be found on the indicated page of the DIC global website.
',&JOREDOZHEVLWH

https://www.dic-global.com/en/

6FRSHRI5HSRUWLQJIn principle, this report provides information on DIC Corporation and consolidated
DIC Group companies worldwide. For information on the scope of reporting for
ESH-related initiatives, please visit the pertinent page of the DIC global website.
https://www.dic-global.com/pdf/csr/environment/dic_report_scope_en_2021.pdf

5HSRUWLQJ3HULRG
Fiscal year 2020 (January 1–December 31, 2020)'DWHRI3XEOLFDWLRQ
June 2021 (The next report is scheduled for publication in June 2022.)*XLGHOLQHV5HIHUHQFHG
Guidelines referenced in the preparation of this report were ISO 26000, theInternational Organization for Standardization’s standard for social responsibility,
released in 2010; Japan’s Responsible Care Code; and the Global Reporting
Initiative (GRI)’s GRI Standards.

Sun Chemicalʼs Activities
DIC Asia Pacificʼs Activities
DIC (China)ʼs Activities

31
32
33

&RUSRUDWH*RYHUQDQFH$0HVVDJHIURPDQ2XWVLGH'LUHFWRU
3URPRWLQJ'LJLWDO7UDQVIRUPDWLRQ'LUHFWRUV$XGLW 6XSHUYLVRU\%RDUG0HPEHUVDQG([HFXWLYH2IÀFHUV
0DWHULDOLW\$QDO\VLV
A 0HVVDJHIURPWKH+HDGRIWKH(6*8QLW
6XVWDLQDELOLW\,QGH[
6XSSRUWIRUWKH7&)'
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Compliance
BCM and Crisis Management
Information Security

37
38
39
41
43
44
45
46
47
47
48

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

49
52
53
56

Business Models that Respond to Social Imperatives
New Technology Development and Value Creation
Harmony with the Community and Social Contributions
Communication with Stakeholders)LQDQFLDO5HSRUWIRU)LVFDO<HDU
7KLUG3DUW\9HULÀFDWLRQ',&*URXS0LOHVWRQHV

34

57
58
59
60
61
68
69

&RYHU'HVLJQ
The cover of this year’s DIC Report derives its
LQVSLUDWLRQIURPWKH',&*URXS¶V³&RORU &RPIRUW´brand slogan, employing bright colors that evoke
the efforts of the Group, a global powerhouse, toenrich and add vibrancy to society and the lives ofpeople everywhere.

DIC Report 2021 ̲2

The DIC Group: A Global Powerhouse
Net Sales

Corporate Data

800

Registered name:

Number of subsidiaries
and affiliates:(

173 Domestic: 29
Overseas: 144

701.2

768.6

805.5

400

789.4

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

600

DIC Building, 7-20,
Nihonbashi 3-chome,
Chuo-ku, Tokyo 103-8233,
Japan
February 15, 1908
March 15, 1937
¥96.6 billion
20,242(Nonconsolidated: 3,360)

751.4

Corporate headquarters:(Billions of yen)

1,000

’16

’17

’18 ’19 ’20 （FY）

200
0Operating Income(Billions of yen)

60

)

50

DIC (China) Co., Ltd. (PRC)

Europe

53

29
58

Japan

Europe and Africa

Japan

Sun Chemical Groupand others

Net sales¥165.1billion

Operating income

DIC Corporation, DIC Graphics
Corporation and others

3¥9.5 billion

Net sales

Asia and Oceania(Excluding Japan)

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

Net sales¥140.0 billion

Operating income
Sun Chemical Corporation headquarters(United States)3̲ DIC Report 2021

39.7

’17 ’18 ’19 ’20 （FY）

DIC has 173 companies in 62 countries and territories around the world.

Asia
DIC Asia Pacific Pte Ltd (Singapore)

41.3

’16

10
0

Global Network

48.4

20

56.5

30

Note: Corporate data is as of December 31,
2020. Net sales and operating income
are for fiscal year 2020.

54.2

40
Corporate headquarters (Tokyo)¥13.9 billion

2¥271.2 billion

Operating income¥19.4 billion

Oceania

Breakdown of Fiscal Year 2020 Net Sales by Segment

Breakdown of Fiscal Year 2020 Operating Income by Segment

Functional
Products

Functional
Products￥701.2

32.3%

billion

53.2%

Color &
Display

Packaging &Graphic

￥39.7

36.1%

Packaging &Graphic

46.0%

billionColor &
Display

14.5%

17.8%

Note: Fiscal year 2020 net sales and operating income as used here include intersegment transactions. For this reason, and because of the existence of transactions classified as “others,” which are not attributable to reportable segments, these figuresdiffer from reported net sales and operating income.

Breakdown of Fiscal Year 2020 Operating Income by Region

Breakdown of Fiscal Year 2020 Net Sales by Region
Asia and Oceania

Asia and Oceania

20.0%

29.2%

North, Central andSouth America

17.8%￥701.2billionJapan

North, Central andSouth America

38.7%

billion

10.1%

Europe and Africa

Japan

￥39.7

40.7%

Europe and Africa

23.5%

20.0%

Note: Operating income as used here includes eliminations (approximately ¥7.9 billion). Accordingly, these percentages do not represent shares of reported operating income.

Principal Global R&D Sites

14

North
America

Polymer
Technical Center —China

Printing Inks
Technical Center —China

Qingdao DIC
Finechemicals (PRC)

Rochdale(United Kingdom)

Cincinnati(United States)

St. Charles(United States)
Midsomer Norton(United Kingdom)North, Central andSouth America
Sun Chemical Group and others

Net sales

Gallarta (Spain)

Fine Chemical
Technical Center—Korea

Eurolab (Germany)

Central ResearchLaboratories (Japan)¥125.0 billion

Operating income¥4.8 billion

14
Central & SouthAmerica

Solid Compound
Technical Center —Asia Pacific (Malaysia)

Polymer Technical Center —Asia Pacific (Thailand)

Pigment TechnicalCenter—Asia Pacific(Indonesia)

Printing Inks
Technical Center —Asia Pacific (Thailand)

DIC/Earthrise Algae
Research Center(United States)

Carlstadt(United States)

DIC Report 2021 ̲4)LQDQFLDO,QIRUPDWLRQNet Sales, Operating Income and Operating Margin
Net sales

Operating income

Net Cash Provided by Operating Activities and Free Cash Flow

Operating margin (%)

Net sales(Billions of yen)
Operating income(Billions of yen)

900
800

805.5

789.4

751.4

700

Net cash provided by operating activities
Free cash flow

(Billions of yen)

80

768.6
701.2

7.2%

7.2%

6.0%
5.4%

600

70

62.5
60

54.2

70

54.5

51.0

50.6

50

5.7%

60
40

500

50

400

40

30

300

30

20

200

54.2

56.5

48.4

41.3

20

39.7

100

10

0

0

30.3
25.8
21.4

10

12.6

0
2016

2017

2018

2019

(FY)

2020

-4.7

-5
2016

2017

2018

2019

(FY)

2020

2ZLQJWRDQLQYHVWPHQWRI ¥ELOOLRQLQ7$,<2+2/',1*6&2/7'QHWFDVKXVHGLQLQYHVWLQJ
DFWLYLWLHVLQFUHDVHGLQ¿VFDO\HDUNet Income Attributable to Owners of the Parent and ROE

Capital Expenditure and Investment(Billions of yen)

Net income attributable to owners of the parent
Return on equity (ROE) (%)(Billions of yen)

70

62.4

50

60

38.6

40

50

34.8

32.0

（%）
30

30

40

37.5

37.1

2019

2020

32.1

23.5

30

20

20

12.9%

13.0%

20

13.2

10.4%
7.7%

10

10

4.2%
0

45.1

2016

2017

2018

2019

10

(FY)

2020

0

0
2016

2017

2018

(FY)

2ZLQJWRDQLQYHVWPHQWRI ¥ELOOLRQLQ7$,<2+2/',1*6&2/7'FDSLWDOH[SHQGLWXUHDQGLQYHVWPHQWLQFUHDVHGLQ¿VFDO\HDU

Returns to Shareholders* (Dividends per Share and Payout Ratio)

Net Assets, Interest-Bearing Debt and D/C Ratio*
Interest-bearing debt

Net assets

D/C ratio (%)

Interim dividend

Payout ratio (%)

Year-end dividend(Billions of yen)

71.5%

（%）
75

400

70
65

（%）
70

60
55

300

265.7

264.5

252.6

241.3

60

266.7

50
45

50
200

44.0%

43.6%

44.7%

42.4%

40

43.2%

36.9%
(Yen)

150

307.0

344.0

327.3

343.5

100

351.4

120

125

60

65

100

20

60
10

2016

2017

2018

2019

2020

'HEWWRFDSLWDO '& UDWLR,QWHUHVWEHDULQJGHEW ,QWHUHVWEHDULQJGHEW1HWDVVHWV

5̲ DIC Report 2021

(FY)

0

30

100

100

40

50

60

50

25
20
15

50

10

40

0

35

27.3%

30
100

40

40.3%

29.4%

0

2016

60
2017

60
2018

2019

2020

)LJXUHVKDYHEHHQDGMXVWHGWRUHÀHFWWKHLPSDFWRIWKHFRQVROLGDWLRQRIVKDUHV

5
(FY)

0

1RQ¿QDQFLDO,QIRUPDWLRQ
Global CO2 Emissions and CO2 Emissions per
Unit of Production (DIC Group)
CO 2 emissions

Global Energy Consumption and Energy Consumption per
Unit of Production (DIC Group)
Energy consumption

CO 2 emissions per unit of production(Tonnes)(Kg CO2 /tonne)

1,000,000

400

900,000
800,000
700,000(GJ/tonne)(Thousands of GJ)

659,000 659,000

292

300

272

270

5.155

142

5.

014

5.

11,100 11,379 11,053 10,902

11,000108

5.

510,717 10,379

10,000635,000 618,000

600,000

5.360

5.144

12,000296

614,00013,000311

305

Energy consumption per unit of production

4

9,000

577,000 552,000

8,000
200

500,000

3

7,000
6,000

400,000

5,000
300,000
100
200,000

2

4,000
3,000

1

2,000
100,000

1,000

0
2015

2016

2017

2018

2019

2020

(FY)

0

* &22HPLVVLRQVSHUXQLWRISURGXFWLRQLVFDOFXODWHGXVLQJDGMXVWHGSURGXFWLRQYROXPH SDUHQWFRPSDQ\LQ-DSDQRQO\  1RWL¿FDWLRQVXEPLWWHGWR-DSDQ¶V0LQLVWU\RI(FRQRP\7UDGHDQG,QGXVWU\

Environment-Friendly Products as a Percentage of Overall
Product Portfolio (DIC Corporation and DIC Graphics Corporation)

0

2015

2016

2017

2018

2019

(FY)

2020

0

* (QHUJ\FRQVXPSWLRQSHUXQLWRISURGXFWLRQLVFDOFXODWHGXVLQJDGMXVWHGSURGXFWLRQYROXPH SDUHQWFRPSDQ\LQ-DSDQRQO\  1RWL¿FDWLRQVXEPLWWHGWR-DSDQ¶V0LQLVWU\RI(FRQRP\7UDGHDQG,QGXVWU\

Occupational Accident Frequency Rate (DIC Corporation)（%）(Rate)

100

1.50

DIC

Overall manufacturing industry in Japan

2015

2016

90
1.00

80
70
60

53%

56%

56%

57%

0.50

59%

58%

50

0.00
2012

40

2013

2014

2017

2018

2019

2020 (FY)

Note: The frequency rate expresses the frequency of accidents resulting in workdays lost in a fiscal year,
calculated as the number of deaths or injuries per million work hours.

30
20Frequency rate ＝

10
0

2015

2016

2017

2018

2019

2020

(FY)

Average Years of Employment (DIC Corporation)
Male employees(Years)Female employees

Number of deaths or injuries due to occupational accidents
Total work hours

A frequency rate of 1.00 means one occupational accident resulting in workdays lost in one year
at a site with 500 employees.

Female Employees in Management Positions (DIC Corporation)
Female employees(Number of people)
60

Percentage of total (%)

18.3 years Female employees:20.1years Overall:18.6 years

（%）

57

Average years of employment in fiscal year 2020
Male employees:

× 1,000,000

7

52
48

50

6

25
5.9%

41

5.5%

40

20

33
15

30

5

5.1%
4.4%

28

4

3.7%

10
20

3

3.1%

5

2
10

0
1994

1

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (FY)
0

2016

2017

2018

2019

2020

2021

(FY)

0

DIC Report 2021 ̲6

A Message fromthe President

Kaoru Ino
Representative Director
President and CEO
DIC Corporation

Future vision:
Become a unique global
company that is trusted bysociety by providing value(safety and peace of mind,
color and comfort)7̲ DIC Report 2021

“We are marshaling our capabilities to addressincreasingly urgent social imperatives and help
realize a sustainable society.”
One of the world’s leading diversified chemicals companies, DIC is also the core of the DIC Group, a multinational organization
comprising 173 companies in 62 countries and territories. The DIC Group is the world’s leading manufacturer of printing inksand core printing ink raw material organic pigments, as well as of polyphenylene sulfide (PPS) compounds—major engineering
plastics—in terms of global market share. Against a backdrop of rapid global change, the Group continues to marshal its
capabilities to promote business portfolio transformation and provide value, positioning it to respond to expectations and earntrust worldwide.

Fiscal Year 2020 in Review
With the spread of COVID-19, fiscal year 2020 forced us to contend with significant changes in society, as well as in our role
as a corporate entity. Hindered by the protracted impact of the pandemic, consolidated net sales declined 8.8%, to ¥701.2
billion, while operating income slipped 4.0%, to ¥39.7 billion. Net income attributable to owners of the parent fell sharply,
owing to one-time costs and the recognition of an extraordinary loss on the divestiture of a business of U.S. subsidiary Sun
Chemical Corporation, both associated with our acquisition of BASF SE’s Colors & Effects business. However, thanks tosigns of economic recovery beginning in the fourth quarter, the Company projects higher net sales and operating income inall segments in fiscal year 2021.

The DIC Way: Addressing Social Imperatives in an Environment of Dramatic Change
The world today is under pressure to respond not only to the protracted impact of COVID-19 but also to changes in society
itself. With the United Nations adoption of the Sustainable Development Goals (SDGs), related initiatives are underway bycountries and regions, as well as by companies and individuals. Youth activism, in particular, is on the rise, underscoredby social media–based efforts to engage young people and promote understanding. The spread of capitalism and rapid
globalization have intensified wealth inequality around the world. With countries and regions, as well as corporate entities,
increasingly striving to build sustainability and environmental, social and governance (ESG) considerations into their socialand economic activities, new metrics for analyzing investments have been developed. This has led to the emergence of what
has come to be known as ESG investing, which continues to transform the rules whereby the competitiveness of companies
is judged. In Japan, Prime Minister Yoshihide Suga has declared that the country will become carbon neutral by 2050. Going
green, including by implementing the green recovery plans set forth by countries around the world, and going digital, throughefforts to leverage artificial intelligence (AI) and digital transformation (DX), are vital, global challenges that are directly linked
to social imperatives. At the same time, both are factors that will drive the global economy in the future.
Amid both of these paradigm shifts, it is important for a company to reconsider its goals, its raison d’être. The DIC Way,an articulation of our management approach adopted in 2008, identifies our mission as being to contribute to sustainable
development for our customers and society. Our current medium-term management plan, DIC111, which began in fiscal
year 2019, outlines our future vision of becoming a unique global company that is trusted by society by focusing ourmanagement resources on businesses that deliver social value—i.e., help resolve issues facing society—and that enhance
economic value.

Mission (Outlined in The DIC Way):We create enhanced value and utilize innovation to introduce socially responsible and sustainable products.

Future vision:
Become a unique global company that is trusted by society by providing value (safety and peace of mind,
color and comfort)

DIC Report 2021 ̲8

At present, manufacturers in such areas as automobiles, renewable energy, semiconductors and food packaging must beable to offer solutions that reduce environmental impact across entire supply chains. Materials producers have a key role toplay in the realization of such solutions. As a manufacturer of fine chemicals, we work to lower the environmental impact ofour production processes. We also seek to provide products that underpin sustainability for our customers and for markets
and in so doing to lower environmental impact at all stages of our supply chains by helping to improve the conditions in which
resources are extracted and used, as well as to curb CO 2 emissions and other environmental threats while at the same time
driving unceasing innovation to tackle substantive social issues.
Guided by The DIC Way, we will work to develop products and solutions that integrate DIC Group technologies to deliver
the social value and enhance the economic value called for in DIC111. By further allocating this economic value to bolster
management resources, we will endeavor to create a virtuous circle of growth.

Creating Value: The Road Ahead
The two basic strategies of DIC111 are Value Transformation and New Pillar Creation. In line with these strategies, we will continue
working to build a business portfolio focused on environment, safety and health (ESH)-related issues and social changes.
Value Transformation calls for rallying the DIC Group’s technological resources to advance qualitative reforms in existing corebusinesses by promoting a targeted shift toward products that provide greater value to both society and our customers, enabling
us to reinforce our business structure. In the Packaging & Graphic segment, for example, our operations have traditionallycentered on publication inks, but we have redirected our focus to products used in packaging for food products, including plastic¿OPVDGKHVLYHVDQGSDFNDJLQJLQNVFRQWULEXWLQJWRVDIHW\DQGSHDFHRIPLQGE\KHOSLQJWRHQVXUHIRRGK\JLHQH)LOPVXVHGLQ
IRRGSDFNDJLQJFRPSULVHPXOWLSOHOD\HUVRI¿OPODPLQDWHGWRJHWKHUZLWKDGKHVLYHV%\FUHDWLQJ¿OPVZLWKRXWVWDQGLQJR[\JHQ
and vapor-barrier properties, we help extend the shelf life of food and reduce food loss. Moreover, by improving the recyclabilityof printing inks and coating agents used on paper packaging for food, we provide solutions that both heighten the performanceof said packaging materials and encourage their recycling. In the Functional Products segment, our lineup of products foruse in electronics equipment includes epoxy resins compatible with 5G-enabled devices that impart excellent insulation andheat resistance, facilitating high-capacity, high-speed communications. These resins were developed using our proprietary
technologies for epoxy resins used in semiconductors and printed wiring boards used in smartphones, personal computers andonboard equipment for automobiles, among others. We have already begun developing epoxy resins for devices compatible withthe 6G cellular telecommunications standard. Value Transformation thus translates into the development of innovative products
in core businesses that offer added value and help address social imperatives.
New Pillar Creation is the leveraging of DIC Group competencies to create new growth-driving businesses that respond to ESHrelated issues and social changes. For example, we have traditionally emphasized the development of products based on organic
materials such as organic pigments and synthetic resins. Recently, we have developed inorganic materials technologies that will
DVVLVWLQRXUHIIRUWVWRKHOSWDFNOHVRFLDOLVVXHV2ISDUWLFXODUQRWHLVDGLVWLQFWLYHÀDNHDOXPLQD¿OOHUVDOHVRIZKLFKFRPPHQFHGLQ-DQXDU\$OXPLQD¿OOHUVDUHXVHGWRKHOSGLVVLSDWHWKHKHDWJHQHUDWHGLQVLGHDXWRPRWLYHDQGHOHFWURQLFVHTXLSPHQW',&¶VQHZ
ÀDNHDOXPLQD¿OOHULPSDUWVSDUWLFXODUO\RXWVWDQGLQJKHDWGLVVLSDWLQJSURSHUWLHVUHGXFLQJWKHDPRXQWQHHGHGDQGWKXVWKHZHLJKW
of components and improving performance. In the area of healthcare, we provide bioproducts such as the edible blue-green algae
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blue pigment extracted from Spirulina, as Linablue, a natural blue food coloring that today is used in food products around theworld. With phycocyanin’s outstanding moisture-retention capacity recently also garnering attention, we recently commercialized aphycocyanin-based Food with Functional Claims (FFC)* that improves the skin’s barrier function.
To underpin our Value Transformation and New Pillar Creation strategies, we recently established the DIC Sustainability
Index, a proprietary index that allows us to measure the social value of our products and to assess their environmental impact
across the supply chain, thereby clarifying the direction of our efforts to address social imperatives. (For more information on
the DIC Sustainability Index and the progress of its deployment, please see page 44.)
$Q))&LVDSURGXFWWKDWLVSHUPLWWHGWRFDUU\VWDWHPHQWVDERXWVSHFL¿FKHDOWKEHQH¿WVLQFOXGLQJVFLHQWL¿FHYLGHQFHRQIRRGVDIHW\DQGHIIHFWLYHQHVV²IRUZKLFKWKHPDQXIDFWXUHUWDNHVIXOOUHVSRQVLELOLW\²RQLWV
SDFNDJLQJLQOLQHZLWKJRYHUQPHQWHVWDEOLVKHGUXOHV1RWL¿FDWLRQPXVWEHVXEPLWWHGWR-DSDQ¶V&RQVXPHU$IIDLUV$JHQF\EHIRUHDQ))&LVPDUNHWHG

Building a Robust Management Infrastructure
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to seriously examine social and economic activities, a process that served to illuminate a number of critical problems. Of particularimportance, it became very evident that Japan lags behind other economic powers in deploying IT and DX. Companies have also faced
FKDOOHQJHVRQWKHKXPDQUHVRXUFHVIURQWZLWKWKHVKLIWWRUHPRWHZRUNQDPHO\WKHGLOXWLRQRILQWHUSHUVRQDOUHODWLRQVKLSVDQGGLI¿FXOWLHVin building mutual trust, both arising from feelings of isolation. Society at large and companies in particular are working to adapt tochanges wrought by this forced experiment, as well as to overcome the shortcomings it has revealed. With remote work unmistakably
the “new normal” for the DIC Group, we are also taking decisive steps to build systems that boost employee productivity and motivation.

9̲ DIC Report 2021

■ Human Resources Management

There is a general consensus that many employees willcontinue to choose telework even after the pandemic,
and that systems for remote work will evolve accordingly,
meaning that hybrid remote and in-person communication
will become standard. This will necessitate changes in theway we approach training. With conventional on-the-job
training no longer a viable option, sharpening work skills,
forming relationships with colleagues and building trust
will require highly effective communication skills. We arepressing ahead with various initiatives to support work stylereforms and the expanded use of telework arrangementsby DIC Group employees. In January 2021, we establishedthe Data Science Center with the aim of fostering humanresources with specialized capabilities in such areas as data
science and materials informatics (MI),* which will greatlyLQÀXHQFHFRUSRUDWHFRPSHWLWLYHQHVVLQWKH\HDUVDKHDG+DYLQJVNLOOHGLQGLYLGXDOVZKRSURDFWLYHO\UDLVHWKHLUKDQGVWR¿OOFUXFLDOUROHVDQGZKRDVSLUHDOZD\VWRUH¿QHWKHLUFDSDELOLWLHVZLOO
help revitalize DIC and will positively impact efforts to reform work styles and transform our business portfolio. Going forward, we
ZLOOUHÀHFWQHZDZDUHQHVVJDLQHGDVDUHVXOWRIRXUH[SHULHQFHVGXULQJWKH&29,'SDQGHPLFLQHIIRUWVWRIRVWHUDQGPDQDJH
human resources. In so doing, we will endeavor to organically mobilize the diverse individuals who make up our labor force toachieve a strong corporate organization.
* MI applies statistical analysis and other informatics techniques to search large amounts of data for new materials.

■ Digital Transformation

In fiscal year 2020, we established the dedicated DX Promotion Department with the objective not only of lifting operational
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sales departments. At production facilities, we have introduced the Internet of Things (IoT) and are making use of AI technologies
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reaction processes and the remote control of production processes. Looking ahead, we will continue to promote digitalization at our
production facilities, positioning us to respond to the demands of customers while at the same time rationalizing and increasing theHI¿FLHQF\RIVXSSO\FKDLQVDQGFUHDWLQJDFUXFLDOQHZLQIUDVWUXFWXUHRIVPDUWIDFLOLWLHVWKDWZLOOIXUWKHULPSURYHRXUFRPSHWLWLYHQHVV
We continue to promote the development of materials by leveraging MI, making full use of unique DIC polymer design technologies
and AI technologies to, among others, realize a new molecular structure for phenolic resins for semiconductor resists. We are also
DFWLYHO\HQJDJHGLQUHVHDUFKLQFROODERUDWLRQZLWKH[WHUQDORUJDQL]DWLRQV6LQFH¿VFDO\HDUZHKDYHSXUVXHGUHVHDUFKDLPHGDW
developing the materials of the future through quantum computer–based chemical simulation, as well as participated in a consortiumof companies, academic institutions and government bodies promoting research in the area of chemical materials that fuses
neuroscience and AI.
We are also advancing digital marketing. With face-to-face marketing activities hindered by COVID-19, we stepped up participation in
online exhibitions. In addition, we have adopted a variety of new digital tools that enable us to share sales and marketing information
with customers—to date generally conducted in person—as well as to facilitate effective remote communication in-house and raise
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LQDSRVWSDQGHPLFZRUOGZHZLOOUHDOL]HFRQVLGHUDEOHEHQH¿WVE\SXUVXLQJDK\EULGVW\OHRIPDUNHWLQJWKDWFRPELQHVGLJLWDODQGLQ
person methodologies.
DX is not simply the introduction of new systems. We recognize the importance of DX as a process for fundamentally transforming
our management foundation and will continue to accelerate related efforts.
■ Improved Safety and Quality

Safety, quality and environmental concerns are cornerstones of our business as a chemicals company. Drawing on thelessons of fires that have occurred at production facilities in the past, we continue to promote production under a meticulous
configuration in a manner that reflects a priority on safety. In particular, we are working to raise awareness to ensure that
employees are able to approach their work in a manner that reflects a commitment to ensuring safety and pride in ourcapabilities as a manufacturer. Of particular note, rather than one-way communications with me simply firing off instructions
and leaving it at that, we hold site meetings that facilitate dialogue, allowing me to actually hear employees’ voices as well as
for them to hear mine. With an eye on our vision for DIC 10 years in the future, we will continue to encourage the frank and

DIC Report 2021 ̲10

open exchange of views with the aim of securing safety by transforming mindsets, building a safety-oriented corporate culture
and boosting job satisfaction.
Quality is an equally high priority for manufacturers. In January 2021, we took corrective actions in light of improprieties that
arose in relation to efforts to secure approval for a certain product, causing considerable inconvenience to customers. This
LQYROYHGFODULI\LQJWKHUROHVRITXDOLW\DVVXUDQFHDQGTXDOLW\ FRQWUROWRFUHDWHDVWURQJXQL¿HGTXDOLW\PDQDJHPHQWV\VWHP
Efforts to fundamentally revamp our Group quality management framework and restore the trust of stakeholders also included
establishing a new quality committee chaired by the CEO, who is now directly responsible for the administration and supervisionof quality management Groupwide.

■ Response to Climate Change

Having set a target for reducing CO2 emissions by 30% from the fiscal year 2013 level by fiscal year 2030, we continue toinvest actively in expanding our use of renewable energy, including electric power generated using biomass, solar power andwind power, and have so far achieved reductions well ahead of forecasts. After extensive deliberations in-house, we resolved
to revise our target. We now aim to achieve carbon neutrality by fiscal year 2050, as well as to reduce CO 2 emissions by 50%
from the fiscal year 2013 level by fiscal year 2030. With many countries reframing emissions reduction targets set with theaim of realizing the goal of the Paris Agreement into milestones on the way to carbon neutrality, we will further strengthen ourefforts to ensure our achievement of carbon neutrality. Of note, in addition to expanding renewable energy as a percentage
of total energy used by the DIC Group, we intend to adopt internal carbon pricing in preparation for the introduction of carbon
border taxes, as well as to promote cooperation with business partners across the supply chain. In addition to initiatives
aimed at reducing CO 2 emissions associated with our business activities, we will actively work to expand our lineup of
products and services that contribute to decarbonization, thereby helping reduce CO 2 emissions attributable to markets, aswell as to society.

A Global Organization that Responds to the Expectations of Society
The DIC Group is committed to allocating management resources to businesses that deliver social value, which in turnenhances economic value. Perpetuating this cycle will lead to further prosperity for society and will ensure that a company
enjoys support, appreciation, trust and respect. This is the sort of organization we want to be. At present, a team of mid-tieremployees is promoting a project to formulate a concrete vision for the DIC Group of the future. This project was launchedwith the goal of creating opportunities for those employees who will lead the DIC of the future to articulate their goals for the
future and put strategies for realizing that vision into practice. It will also explore novel ways to cultivate and deploy key DIC
Group resources in response to evolving trends and needs with a view to eventual commercialization.
The era ahead is one in which organizations that leverage the diverse strengths of individuals will prosper. An organization
made up of individuals with varied capabilities can create dynamism. As a multinational organization with operations in 62
countries and territories around the world, 60% of our employees are overseas. The integration of the newly acquired Colors& Effects business will make us even more diverse. Despite the protracted impact of the COVID-19 pandemic worldwide,
we will continue working to build social value, as well as to respond to the expectations of society as a whole. In all of ourendeavors, I look forward to the ongoing support of all of our many stakeholders.

11̲ DIC Report 2021

12-Year Summary
Key Financial Data
Period

112

113

114

115

116

117

118

119

120

121

122

123

2014

2015

2016

2017

2018

2019

2020

2009

2010

2011

2012

Net sales (Billions of yen)

757.8

779.0

734.3

703.8

784.0

830.1

820.0

751.4

789.4

805.5

768.6

701.2

Operating income (Billions of yen)

27.8

37.2

35.0

38.5

44.1

41.1

51.1

54.2

56.5

48.4

41.3

39.7

Operating margin (%)

3.7

4.8

4.8

5.5

5.6

4.9

6.2

7.2

7.2

6.0

5.4

5.7

R&D and technology-related
expenses*1 (Billions of yen)

27.1

26.3

23.7

23.0

19.8

25.3

26.8

26.2

27.4

28.4

27.9

26.2

Of which, R&D expenses(Billions of yen)

12.4

11.0

9.1

8.8

8.8

10.9

12.2

11.2

12.4

12.9

12.5

12.0

Fiscal year

2013

*3

IncomeOrdinary income (Billions of yen)

19.1

31.7

30.8

35.1

40.9

39.9

49.0

55.8

57.0

48.7

41.3

36.5

Net income attributable to ownersof the parent (Billions of yen)

2.5

15.8

18.2

19.1

28.8

25.2

37.4

34.8

38.6

32.0

23.5

13.2

EBITDA (Billions of yen)

48.8

63.7

61.5

65.2

69.1

77.0

94.0

82.6

86.1

81.4

67.4

55.6

EBITDA margin (%)

6.4

8.2

8.4

9.3

9.8

9.3

11.5

11.0

10.9

10.1

8.8

7.9

Total assets (Billions of yen)

749.9

703.8

675.1

693.0

761.7

803.7

778.9

764.8

831.8

801.3

803.1

818.0

Net assets (Billions of yen)

122.8

130.4

124.5

160.7

218.9

276.7

289.9

307.0

344.0

327.3

343.5

351.4

Equity ratio (%)

13.5

15.3

15.1

19.8

25.6

31.1

33.7

36.4

37.9

37.3

38.9

38.9

Interest-bearing debt
(Billions of yen)

377.7

337.6

328.5

315.6

299.1

274.2

259.5

241.3

265.7

264.5

252.6

266.7

D/C ratio (%)

75.5

72.1

72.5

66.3

57.7

49.8

47.2

44.0

43.6

44.7

42.4

43.2

Net cash provided by operating
activities (Billions of yen)

39.5

30.9

31.2

41.4

33.9

46.4

29.1

62.5

54.2

51.0

50.6

54.5

Net cash used in investing activities(Billions of yen)

(12.5)(12.3)(17.6)(23.7)(9.8)(27.4)(10.0)(32.2)(58.9)(38.4)(24.9)(33.0))UHHFDVKÀRZ %LOOLRQVRI\HQ

27.0

18.6

13.7

17.7

24.0

19.0

19.1

30.3

(4.7)

12.6

25.8

21.4

Net cash provided by (used in)¿QDQFLQJDFWLYLWLHV %LOOLRQVRI\HQ(16.0)(26.3)(7.1)(26.6)(32.8)(26.1)(24.8)(26.9)

11.4(11.8)(26.8)

6.3

Cash and cash equivalents(Billions of yen)

29.5

22.9

29.6

22.5

15.0

16.4

15.1

16.7

17.7

18.6

16.7

41.4

Earnings per share (Yen)

32.11

175.96

197.90207.98292.26267.81

389.40366.72407.56338.40248.29139.81Price earnings ratio (PER)(Times)

62.9

11.0

8.4

9.5

10.9

10.9

8.5

9.7

10.5

10.0

12.2

18.6

Dividends per share (Yen)

40

40

40

60

60

60

80

100

120

125

100

100

124.6

22.7

20.2

28.8

20.5

22.4

20.5

27.3

29.4

36.9

40.3

71.5

Return on equity (ROE) (%)

2.6

15.1

17.3

16.0

16.1

11.3

14.6

12.9

13.0

10.4

7.7

4.2

Capital expenditure(Billions of yen)

23.6

20.8

27.0

26.6

27.1

33.6

32.1

31.3

33.6

32.1

35.0

34.0

Depreciation and amortization(Billions of yen)

35.4

33.0

29.7

27.4

25.9

33.8

32.9

32.4

31.5

32.8

33.1

32.6

Overseas sales ratio (%)

58.2

57.3

58.2

56.7

66.6

63.4

65.1

62.4

63.4

63.6

63.5

64.8

Average exchange rate (¥/US$)

93.51

87.69

79.77

79.93

97.06

106.32120.85109.96112.33110.46109.11106.37

Average exchange rate (¥/EUR)

130.91116.63110.88103.11129.25141.41134.14122.06127.03130.46122.13121.43

Number of employees

22,583

21,572

20,455

20,273

20,034

20,411

20,264

20,481

20,628

20,62020,513

20,242Financial Position

Cash FlowsPer Share Information*2

Payout ratio (%)

Other Indicators*1 Technology-related expenses are for DIC and DIC Graphics Corporation*2 Per share information has been adjusted to reflect the impact of the consolidation of shares.
*3 (IIHFWLYHIURP¿VFDO\HDU',&DQGLWVGRPHVWLFFRQVROLGDWHGVXEVLGLDULHVFKDQJHGWKHLU¿VFDO\HDUHQGIURP0DUFKWR'HFHPEHU$VDFRQVHTXHQFHUHSRUWHGUHVXOWVUHÀHFWWKHIDFWWKDWIRUWKHVHFRPSDQLHV¿VFDO\HDUZDVDWUDQVLWLRQDOLUUHJXODUQLQHPRQWKSHULRG)RUWKHSXUSRVHRIFRPSDULVRQ¿VFDO\HDU¿JXUHVKHUHKDYHEHHQDGMXVWHGWRUHSUHVHQWWKHPRQWKVIURP-DQXDU\±'HFHPEHU

DIC Report 2021 ̲12A Message from the CFO
The DIC Group works to maintain sound financial health while
promoting determined business strategies. We aim to expedite
business portfolio transformation by promoting significant M&A
transactions and the creation of new businesses.

Shuji Furuta
Head of Finance and Accounting Unit
CFO

Maximization of cash ﬂows

D/C ratio

50%

Returns to shareholders

Investments in growth

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NH\SULRULWLHVPDLQWDLQLQJVRXQG¿QDQFLDOKHDOWKSURPRWLQJLQYHVWPHQWVLQJURZWKWRWUDQVIRUPRXUEXVLQHVVSRUWIROLRDQGHQVXULQJVWDEOHUHWXUQVWRVKDUHKROGHUV$VSHUIRUPDQFHLQGLFDWRUVZHKDYHDGRSWHGGHEWWRFDSLWDO '& UDWLR1WRJDXJHILQDQFLDOVRXQGQHVVUHWXUQRQHTXLW\ 52( WRDVVHVVFDSLWDOHIILFLHQF\SD\RXWUDWLRWRHYDOXDWHUHWXUQVWRVKDUHKROGHUVDQGHDUQLQJVEHIRUHLQWHUHVWWD[HV
GHSUHFLDWLRQDQGDPRUWL]DWLRQ (%,7'$ 2WRMXGJHRXUDELOLW\WRJHQHUDWHFDVKDQG
PD[LPL]HVKDUHKROGHUYDOXH

Financial health| Basic Approach

Value Transformation
New Pillar Creation

Payout ratio

30%| Sound Financial Health
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GHWHULRUDWHGWRDVRIWKHHQGRI¿VFDO\HDU²ZDVDQLPSURYHPHQWWKDWUHÀHFWHGJOREDOHIIRUWVWRHQKDQFHFDVKHI¿FLHQF\DVZHOODVUREXVWQHWFDVKSURYLGHGE\RSHUDWLQJDFWLYLWLHVDQGDFFXPXODWHGHDUQLQJV2ZLQJWRWKHDFTXLVLWLRQRI%$6)¶V&RORUV (IIHFWVEXVLQHVVLQWHUHVWEHDULQJGHEWDVRI'HFHPEHULVOLNHO\WREHKLJKHUWKDQD\HDUHDUOLHUEXWZHH[SHFWRXU'&UDWLRWRUHPDLQLQWKHDUHDRI:HZLOODOVRVWULYHWRPDLQWDLQVRXQG¿QDQFLDOKHDOWKE\SURFXULQJELOOLRQWKURXJKDVXERUGLQDWHGWHUPORDQ²DW\SHRIK\EULG¿QDQFLQJWKDWZKLOHRI¿FLDOO\GHEWKDVFKDUDFWHULVWLFVVLPLODUWRHTXLW\²DVZHOODVE\GLYHVWLQJDVVHWVDQGUHLQIRUFLQJRXUPDQDJHPHQWRIZRUNLQJFDSLWDO
+DYLQJFKRVHQ52(DVDQLQGLFDWRURIFDSLWDOHI¿FLHQF\ZHDUHZRUNLQJWRLQFUHDVHWKHYLVLELOLW\RIUHWXUQRQLQYHVWHGFDSLWDO 52,& LQHDFKLQGLYLGXDOEXVLQHVVDQGWRHQKDQFHDZDUHQHVVRI52(*URXSZLGH7RDGYDQFHWKHWUDQVIRUPDWLRQRIRXUEXVLQHVVSRUWIROLRDQGIXUWKHUEROVWHUFDSLWDOHI¿FLHQF\ZHDUHSURPRWLQJLQYHVWPHQWVDLPHGDWGULYLQJQHZJURZWKDQGKDYHHVWDEOLVKHGFULWHULDIRUZLWKGUDZLQJIURPEXVLQHVVHVLQ
OLQHZLWKZKLFKZHDUHDFWLYHO\GLYHVWLQJDVVHWVDQGUHWUHDWLQJIURPEXVLQHVVZLWKORZJURZWKSRWHQWLDODQGSUR¿WDELOLW\:HHPSOR\(%,7'$DQGWKHFDVKFRQYHUVLRQF\FOH &&& DVPHWULFVIRURXUDELOLW\WRJHQHUDWHFDVKÀRZV7KHDGGLWLRQRI(%,7'$WRRXU
FRQYHQWLRQDOSURILWDELOLW\FHQWHUHGSHUIRUPDQFHLQGLFDWRUVDQGRXUHIIRUWVWRVKRUWHQWKH&&&XQGHUVFRUHRXUFRPPLWPHQWWRFRQGXFWLQJ
PDQDJHPHQWZLWKDJUHDWHUDZDUHQHVVRIFDVKÀRZDQGWKHQHHGWRLQFUHDVHVKDUHKROGHUYDOXH
Interest-bearing debt (Billions of yen)
Net assets (Billions of yen)
D/C ratio (%)

Financial Health

344.0

241.3

44.0

2016

265.7

264.5

43.6

44.7

2017

2018

351.4

343.5

327.3

307.0

252.6

42.4

2019

266.7

2020

Maintain D/C ratio at around 50%
Note: Forecasts for interest-bearing debt and D/C ratio for fiscal year 2021 assume the completion of DIC’s acquisition of BASF’s Colors & Effects business.

13̲ DIC Report 2021

Target for
D/C ratio: Around 50%

43.2

2021
(Forecast)(FY)

Promote investments in growthand maintain D/C ratio at around 50%

Net income attributable to ownersof the parent (Billions of yen)

ROE

EBITDA(Billions of yen)

ROE (%)
86.1

13.0

81.4

10.4

55.6

7.7

38.6

70.3

67.4
6.6

32.0
23.5

4.2

22.0

13.2

2017

2018

2019

2020

2021 (FY)2017(Forecast)

2018

2019

2020

2021

(FY)

(Forecast)| Strategic Investments to Accelerate Growth
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HOHFWURQLFVDXWRPRWLYHQH[WJHQHUDWLRQSDFNDJLQJDQGKHDOWKFDUH:HFRQWLQXH
Total capital expenditure
Total strategic investments
WRSURPRWHLQYHVWPHQWYLDFRUSRUDWHYHQWXUHFDSLWDO &9& DQGRWKHUHIIRUWVInvestments(Billions of yen)
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150
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70| Stable Returns to Shareholders:HZLOOFRQWLQXHWRSD\GLYLGHQGVWKDWDUHLQNHHSLQJZLWKSUR¿WJURZWKLQOLQHZLWKRXUFRPPLWPHQWWRHQVXULQJVWDEOHUHWXUQVWRVKDUHKROGHUV',&VHWVDWDUJHWIRURXUSD\RXWUDWLRRIZKLFKZLOOVHUYHDVDJXLGHOLQHIRUGLYLGHQGVRYHUWKHPHGLXPWHUP:HDUHSURSRVLQJD\HDUHQGGLYLGHQGIRU¿VFDO\HDURI$VDFRQVHTXHQFHRXUGLYLGHQGIRUWKHIXOOWHUPZKLFKLQFOXGHVDQLQWHULPGLYLGHQGRIZLOOEH:HDOVRDQWLFLSDWHDQDQQXDOGLYLGHQGRILQ¿VFDO\HDU

60
50
40

33.6
28.8

30
20

34.0

35.0

32.1

13.0

10

2.5

3.1

2019

2020

0

2017

2018

2021 (FY)(Forecast)

Note: Forecasts for interest-bearing debt and D/C ratio for fiscal year 2021 assume
the completion of DIC’s acquisition of BASF’s Colors & Effects business.

Returns to Shareholders*1
Interim (Yen)
Year-end (Yen)
Payout ratio (%)

36.9

71.5

43.0

40.3

29.4

30
Dividend
yield (%)*2

120

125

60

65

60

100

100

100

40

50

50

60

60

50

2017

2018

2019

2020

2.8

3.7

3.3

3.8

30

50
2021 (FY)(Forecast)*1 Figures have been adjusted to reflect the impact of the consolidation of shares.

1RWHV
*2 Dividend yield: Annual dividend payments / Closing share price at fiscal year-end
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DIC Report 2021 ̲14

The DIC Group’s Approach to
Value Creation
Delivering

Business Portfolio
Transformation Under DIC111

Environmental
issuesManagement capital(Inputs)

Funds essential tothe provision of products
and services

Integrate technologies
and make use ofopen innovation

Organic molecular
designOptics and
color

Basic
technologies

Applicability
assessment(Coating/printing/molding/adhesion)

Polymer
designDispersion

ies

New Pillar Creation
Create new businesses in response to
ESH-related issues and social changes

lut

on

ti o

Evo

i

Natural capital
Environmental resources andraw materials essential tothe provision of products
and services

of

org

a ni

zati

onal

capa bi lit i e sl
D igit atraMarshal individual
strengths to createorganizational dynamism

Social capital
Cooperation with stakeholders
and local communities

Reinforce ESG initiatives
The DIC Way
15̲ DIC Report 2021

ls
de
mo

Value Transformationlog

Ability to rally diverse humanresources as the source of
DIC’s competitiveness as a
global company (WING)

bu
sin
es
s

Strengthen DIC’s corporate structure throughqualitative reforms of businessesof techno

Human capital

Climate change

Overh
aul
of

ips
rsh
e
rtn
Pa

r a ti o n

Accumulated technologies
and know-how

Cyber threats

Break free of
reliance on
independent efforts

In t
eg

Intellectual capital

Human rights
issuesDiverse social imperatives

Manufacturing capital
Facilities and equipment
essential to the provisionof products and services

Health-related
issuesnFinancial capital

Resource
depletion

n

r
sf o

m

a

With the aim of ensuring a sustainable society, the DIC Group strives to provide products andsolutions that respond to the needs of markets and its customers and add color and comfort to life.

Outcomes

Segment

Outputs

Packaging & Graphic

Next-generation
packaging inks andcoatings, functional
packaging adhesives,
industrial-use jet inks,
othersColor & Display

Pigments for color filters,
pigments for cosmetics,
effect pigments, natural Color and display
colorants, LC materials, materials that makenext-generation display life colorful
materials, others

Functional Products

Sustainable polymers,
environment-friendly
PPS compounds for
Functional products
automotive components, that add comfort
high-performance industrial
adhesive tapes, others

Business area

Electronics

Automotive

Healthcare

Packaging materials
that bring safety andpeace of mind

Outputs

Outcomes

Technologies andfunctional materials
that support the spreadof digitization

Provide functional materials that
contribute to a digital society

Technologies andfunctional materials that
underpin efforts to transformthe automotive industry

Provide composite materials that
contribute to a mobility society

Packaging materials
that help reduce foodloss and support
Next-Generation Packaging sustainability
Microorganism and cell culture
technologies withapplications extending
from food safety toadvanced medical care

SDGs

Provide packaging solutions that
contribute to environmental
sustainability
Provide fine chemicals produced
using biotechnological processes
that contribute to health and longevity

SDGs Goals
2, 3, 6, 7, 9, 11,
12, 13, 14 and 15

DIC Report 2021 ̲16

Fiscal Year 2020 DIC Group Topics
DIC Group Initiatives in the Fight against COVID-19 and the Impactof the Pandemic on the Group’s Performance
The DIC Group would like to express its sorrow at the loss of lives and extend its deepest sympathies to everyone who has been
affected by the COVID-19 pandemic. At this challenging time, the Group is especially grateful to the healthcare professionals aroundthe world who are working tirelessly to alleviate the spread of the virus.
The Group works with customers in diverse industries to achieve innovations that bring “Color & Comfort” to society through
FKHPLVWU\(YHQJLYHQWKHGLI¿FXOWLHVRIWKHFXUUHQWSDQGHPLF',&*URXSSURGXFWVSOD\DQLPSRUWDQWRQJRLQJUROHLQVDIHJXDUGLQJ
stable supplies of daily necessities. Accordingly, the entire Group is committed to working as one to help maintain social
infrastructure. The Group will continue striving to contribute to society by delivering distinctively DIC products and technologies tosupport the efforts of a wide range of frontline healthcare facilities and local communities.
Donation of 10,000 N95 and Other High-Performance Masks to Healthcare Facilities

In April 2020, DIC donated 10,000 N95, surgical, ostrich antibody and other highperformance masks from its stockpile to healthcare facilities in Japan.
Provision of “DIC Health Packs” to Senior Care Facilities in Southeast Asia

As a component of a corporate social responsibility (CSR) project in Southeast Asia, DIC
Group companies in the region devised the idea of DIC Health Packs, kits containing avariety of COVID-19 protective items. Group companies prepare the DIC Health Packs,
which include masks bearing the DIC logo, DIC Spirulina (a health food) and liquid
disinfectant, and then donates them to senior care facilities across the region.
Launch of Special COVID-19 Seals Indicating that Proper Cleaning and Disinfection Has Been Implemented

DIC Color Design, Inc., has developed and commenced sales of special seals to signifythat proper cleaning and disinfection has been implemented. These seals are used byhotels, for example, as door seals to indicate to guests that their room has not beenaccessed after cleaning and disinfection.
Production of Droplet Infection–Preventing Face Shields and Donation to Healthcare Facilities

To curtail the transmission of COVID-19, DIC leveraged proprietary DIC Group technologies todevelop face shields, which it has supplied to production sites and other workplaces where masks
must be worn. Prioritizing development speed, the Group diverted headbands normally used inhelmets manufactured by DIC Plastics, Inc., to the production of face shields. The Group also
donated approximately 1,000 of these face shields to healthcare facilities.
Note: For more information, please see page 24.

Provision of Hollow-Fiber Membranes for ECMO

DIC provides hollow-fiber membranes to add oxygen to the blood in extracorporeal
membrane oxygenation (ECMO), which is currently being used worldwide to treat critically
ill COVID-19 patients.

Business Continuity Initiatives Aimed at Maintaining Social Stability
In an attempt to curb the rampant spread of COVID-19, major cities in countries and territories around the world have implemented
stringent lockdowns. Nonetheless, DIC Group production facilities have sustained operations without interruption, with the approvalof governments and other public bodies, to respond to demand from customers critical to social infrastructure, including food andpharmaceuticals manufacturers and newspaper publishers. The Group’s products thus play an important role in preserving stablesupplies of these daily necessities and helping to maintain social infrastructure.
Anticipating a prolonged risk of COVID-19 infection, DIC has formulated and is implementing a policy for operating underpandemic conditions.
17̲ DIC Report 2021

● Promote thorough efforts to prevent the spread of COVID-19 and prioritize the health and safety ofcustomers, suppliers, and DIC Group employees and their families;● Work to maintain DIC Group production and supply activities while minimizing the impact on customers
and suppliers; and,● Support healthcare professionals and promote efforts to contribute to society, with the goal of ensuring
DIC remains a company that is loved and respected worldwide.

Note: )RULQIRUPDWLRQRQDFWLYLWLHVLQWKH$PHULFDVDQG(XURSHWKH$VLD±3DFL¿FUHJLRQDQGWKH35&SOHDVHVHHSDJHVDQGUHVSHFWLYHO\Posters illustrating DIC Group measures to prevent thetransmission of COVID-19

Impact on Segment Operating Results
Packaging & Graphic

In the area of materials for food packaging, sales wererobust overseas, owing to demand driven by stay-athome measures, but languished in Japan as a result ofsluggish sales to convenience stores, among others, as
people refrained from leaving their homes. In products for
FRPPHUFLDOSULQWLQJÀDJJLQJHFRQRPLFDFWLYLW\SUHYHQWHGD
recovery in shipments of inks for advertisements, catalogs,
newspapers and other applications. Segment operating
LQFRPHURVHVLJQL¿FDQWO\EROVWHUHGE\FRVWFXWWLQJHIIRUWV
including curbing expenses related to business trips.

Packaging inks

Publication inks

Pigments for cosmetics and for inks

TFT LCs (uses include LCD televisions)

Epoxy resins

PPS compounds (uses include automotive components)

Color & Display

Sales of color materials fell sharply, owing to declining
shipments of pigments for cosmetics, as mask-wearing
became an ingrained part of daily life worldwide. In
display materials, sales rose as increased time spent byconsumers at home led to robust demand in the market
for liquid crystal displays (LCDs), pushing up shipmentsof pigments for color filters and thin-film transistor liquid
crystals (TFT LCs). Segment operating income dropped,
as production adjustments prompted the cutting ofoperating rates at certain production facilities made it
LPSRVVLEOHWRDEVRUEHG¿[HGDQGRWKHUFRVWVFunctional Products

Demand for materials for automotive applications plunged
temporarily. As a consequence, full-term segment sales
decreased despite a dramatic recovery in shipments ofsynthetic resins for use in automotive coatings, epoxy
resins for semiconductor devices used in onboard
equipment, and PPS compounds—uses for which,underpinned by the trend toward lighter and increasingly
electrified vehicles—rallied significantly in the fourth
quarter. Segment operating income was down, as lower
UDZPDWHULDOVSULFHVDQGFRVWUHGXFWLRQVZHUHLQVXI¿FLHQW
to offset the decline in full-term shipments.

DIC Report 2021 ̲18

Packaging & Graphic
3DFNDJLQJ0DWHULDOVWKDW%ULQJ
6DIHW\DQG3HDFHRI0LQG
Masamichi Sota

SDGs Goals 12, 13 and 14

0DQDJLQJ([HFXWLYH2I¿FHU
3UHVLGHQW3DFNDJLQJ *UDSKLF%XVLQHVV*URXSMain Products
7KLVVHJPHQWLQFOXGHVQRWRQO\SULQWLQJLQNVEXWDOVRDGKHVLYHVFRDWLQJVILOPVDQGDEURDGUDQJH
RIRWKHUSDFNDJLQJPDWHULDOVDQG
VROXWLRQVWKHPDUNHWVIRUZKLFKFRQWLQXHWRVHHUREXVWJURZWKLQ
$VLDDQGHPHUJLQJHFRQRPLHV

［Printing Materials］*UDYXUHLQNVÀH[RLQNVRIIVHWLQNVQHZVLQNVMHWLQNVPHWDOGHFRUDWLYHLQNVSULQWLQJSODWHVVHFXULW\LQNVSULQWLQJVXSSOLHV［Packaging Materials］
3RO\VW\UHQHSDFNDJLQJDGKHVLYHVPXOWLOD\HU¿OPV

Segment Operating Results
Operating Income

Net Sales(Billions of yen)

430.5

416.4

114.7

388.4

(Billions of yen)

112.2

19.2

102.3

21.9

21.8
5.7

5.3

6.4
244.3

262.3

235.4

12.8

12.2
8.2

68.7

69.6

62.0

FY2019Japan

FY2020The Americas
and Europe

China andAsia Pacific4.5

FY2021 (Forecast)

3.5

4.4

FY2019Japan

FY2020The Americas
and Europe

FY2021 (Forecast)

China andAsia Pacific

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19̲ DIC Report 2021

Product News
Efforts to Develop Biomass-Based Packaging Inks (Gravure Inks, Flexo Inks) and Compostable Packaging Adhesives,Q-DSDQWKH',&*URXSKDVREWDLQHG%LRPDVV0DUNFHUWL¿FDWLRQIRUJUDYXUHLQNVXVHGIRUSULQWLQJ
RQJHQHUDOSXUSRVHILOPVVKULQNILOPDQGSDSHUDQGKDVVXFFHHGHGLQFRPPHUFLDOL]LQJDQ
DQWLEDFWHULDOYDUQLVKIRUXVHRQSULQWHGSDFNDJLQJ¿OPVXVHGIRULQGLYLGXDOO\SDFNDJHGSURWHFWLYH
IDFLDOPDVNV2YHUVHDVWKH6XQ&KHPLFDO*URXSLVFXOWLYDWLQJPDUNHWVIRUFRPSRVWDEOHSDFNDJLQJDGKHVLYHVLQNVIRUSULQWLQJRQIRRGFRQWDFWPDWHULDOVLQNVWKDWIDFLOLWDWHGHLQNLQJDQGRWKHUKLJKELRPDVVFRQWHQWSURGXFWVDQGKDVDOVRFRPPHQFHGWKHGHYHORSPHQWRIDQWLEDFWHULDOFRDWLQJVDevelopment of DICDRY LX-RP Series of Dry Laminating Adhesives Made from Recycled PET Bottles',&UHFHQWO\GHYHORSHGWKHDICDRY/;53VHULHVRIGU\ODPLQDWLQJDGKHVLYHVIRUIOH[LEOHSDFNDJLQJZKLFKDUHPDGHIURPUHF\FOHGSRVWFRQVXPHUSRO\HWK\OHQH
WHUHSKWKDODWH 3(7 ERWWOHV:KLOHFRQYHQLHQFHPDNHVSODVWLFVWKHIDYRUHGPDWHULDOIRUDZLGHUDQJHRIDSSOLFDWLRQVWKHHQYLURQPHQWDOLPSDFWRIZDVWHSODVWLFKDVEHFRPHDQLVVXHRIFRQFHUQDQGHIIRUWVWRIDFLOLWDWHWKHHIIHFWLYHXVH
Incineration
WKHUHRILVDJOREDOFKDOOHQJH',&OHYHUDJHGLWVSURSULHWDU\SRO\PHU
Process flow for the
Reduction of CO emissions
manufacture of adhesives
V\QWKHVLVWHFKQRORJLHVWRIDFLOLWDWHWKHFKHPLFDOUHF\FOLQJRIUHF\FOHG
using recycled PET bottles
Disposal as landfill
3(7ERWWOHVLQWRUDZPDWHULDOVVXLWDEOHIRUXVHLQSDFNDJLQJDGKHVLYH PET beverage bottles
Reduction of waste plastic
and marine plastics$GGLWLRQDOO\E\RSWLPL]LQJWKHUHVLQ¶VFRPSRVLWLRQWKH&RPSDQ\KDV
Collection/separation/pulverization/
VXFFHHGHGLQUHDOL]LQJDSURGXFWWKDWLVERWKVROYHQWVROXEOHDQGZKLFKwashing/pelletizing
GHOLYHUVH[FHOOHQWDGKHVLYHSURSHUWLHV$GKHVLYHVLQWKHDICDRY LX53VHULHVERDVWDUHF\FOHG3(7FRQWHQWRI VROLGFRQWHQWUDWLR 
Adhesive resin synthesis
DQGOLNHFRQYHQWLRQDODICDRY/;DGKHVLYHVLVDOVRVXLWDEOHIRU
Reaches consumers(Chemical recycling)
Laminated filmin the form of packaging
Decrease in use of petroleum-derived
ODPLQDWLQJOLJKWZHLJKWSDFNDJLQJPDWHULDOVDQGUH¿OOSRXFKHV
virgin raw materials
2

回収 BOXBusiness Strategies Under DIC111
7KH',&*URXSZLOOFRQFHQWUDWHUHVRXUFHVRQKLJKYDOXHDGGHGSURGXFWVLQWKHSURPLVLQJDUHDVRISDFNDJLQJVROXWLRQVDQGVSHFLDOW\LQNVZKLOHDFFHOHUDWLQJWKHJURZWKRIEXVLQHVVHVLQWKHÀRXULVKLQJPDUNHWIRUSDFNDJLQJPDWHULDOVWKURXJKSRUWIROLRH[SDQVLRQ,QVSHFLDOW\LQNVWKH*URXSZLOODOVRVHHNWRDFKLHYHKLJKSUR¿WDELOLW\WKURXJKIXUWKHUJOREDOPDQDJHPHQWLQWHJUDWLRQDQGWKHKRUL]RQWDOGHSOR\PHQWRIKLJKYDOXHDGGHGSURGXFWVValue Transformation

Publication inks

• Packaging solutions
Printing inks, adhesives, films, polystyrene• Specialty inks
Jet inks, security inks

Percentage of Net Sales(FY2018)

Percentage of Net Sales(FY2021)(Forecast)

Percentage of Net Sales(FY2025)(Target)

73%

76%

85%

Fiscal Year 2020 Highlights
DIC and FPCO Explore Collaboration in the Practical Implementation of a Closed-Loop Recycling System for Polystyrenethat Employs Chemical Recycling',&DQG)3&RUSRUDWLRQ )3&2 DUHH[SORULQJWKHHVWDEOLVKPHQWRIDFROODERUDWLYHUHODWLRQVKLSWKDWLQFOXGHVWKHFUHDWLRQRIDFKHPLFDOUHF\FOLQJMRLQWYHQWXUH7KHWZRFRPSDQLHVSODQWRLQWURGXFHWKLUGSDUW\WHFKQRORJLHVIRUFRQYHUWLQJSRO\VW\UHQHEDFNLQWRVW\UHQHPRQRPHUWRIDFLOLWDWHWKH
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H[SDQGHGWRDOORZWKHFROOHFWLRQRIXVHGIRRGFRQWDLQHUVYLDDQHWZRUNRIFROOHFWLRQFHQWHUV6W\UHQHPRQRPHUUHF\FOHGE\WKH',&±)3&2MRLQWYHQWXUHIURPWKHFRORUHGDQGRUSDWWHUQHG
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Chemical recycling
FPCO

Recycled
styrene monomer

Recycling center

Model ofclosed-loop recycling
system for polystyrenethat employs chemical
recycling

Collection

回 収 B OX

End-of-life
polystyrene

Supermarkets andother retailers

DIC
Manufacture ofpolystyrene

Polystyrene resin
Sales

FPCO
Manufacture of polystyrene
food containers

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Color & Display&RORUDQG'LVSOD\0DWHULDOVWKDW
0DNH/LIH&RORUIXO
Yoshinari Akiyama

SDGs Goals 3 and 13

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3UHVLGHQW&RORU 'LVSOD\%XVLQHVV*URXSMain Products
3URGXFWVLQWKLVVHJPHQWLQFOXGHDZLGH
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VDIHDQGJHQWOHIRUXVHE\SHRSOH

［Color Materials］
3LJPHQWVIRUSULQWLQJLQNVSLJPHQWVIRUFRDWLQJVDQGSODVWLFVHIIHFWSLJPHQWVSLJPHQWVIRUFRORU¿OWHUVSLJPHQWVIRUFRVPHWLFVKHDWKIRRGV［Display Materials］
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OLTXLGFU\VWDO 671/& PDWHULDOVSegment Operating Results
Net Sales

170.8(Billions of yen)(Billions of yen)

32.2

116.4

Operating Income

10.8

105.8

8.4

4.8

29.7

8.4

27.9
146.0

95.8

5.6

85.2

6.6

6.0
2.8

FY2019Japan

FY2020Overseas

FY2021 (Forecast)

FY2019Japan

1.9

FY2020

FY2021 (Forecast)

Overseas

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21̲ DIC Report 2021

Product NewsDIC Develops New Pigments for Color Filters Used in Next-Generation and Other Products,QWKHDUHDRISLJPHQWVQRWDEOHDFKLHYHPHQWVE\WKH',&*URXSRIODWHLQFOXGHWKHGHYHORSPHQW
RIQHZJUHHQDQGEOXHSLJPHQWVIRUFRORU¿OWHUVXVHGLQQH[WJHQHUDWLRQKLJKGH¿QLWLRQRUJDQLF
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WKHGHYHORSPHQWRIFRORUPDWHULDOVXVLQJXQLTXHVXUIDFHSURFHVVLQJWHFKQRORJLHV2YHUVHDV
6XQ&KHPLFDOSURFHHGHGZLWKWKHGHYHORSPHQWRIQDWXUDOZD[GLVSHUVLRQVIRUXVHLQSLJPHQWVIRUFRVPHWLFV,Q/&PDWHULDOV',&ODXQFKHGSRO\PHUVXVWDLQHGDOLJQPHQW 36$ /&VWKDWERDVW
RXWVWDQGLQJUHOLDELOLW\DQGUHVSRQVHWLPHDQGVHQVLWLYLW\IRU.GLVSOD\V7KH',&*URXSLVDOVRDSSO\LQJLWV/&WHFKQRORJLHVWRWKHGHYHORSPHQWRIVPDUWZLQGRZVDQG/&EDVHGDQWHQQDV3LJPHQWVIRUFRORU¿OWHUVDWZRUN

Launch of PHYCONA, an FFC that Enhances the Skin’s Barrier Function
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PRLVWXUL]HUVSK\FRF\DQLQDSLJPHQW±SURWHLQFRPSOH[LVSDUWLFXODUO\HIIHFWLYHLQDLGLQJPRLVWXUH
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DERXWGU\VNLQDQGWKRVHLQWHUHVWHGLQDGYDQFHGVNLQFDUHDVZHOODVWRKHDOWKFRQVFLRXVLQGLYLGXDOVDQGWKRVHZKRKDYHWULHGYDULRXVRWKHUPRLVWXUL]HUVDQGVHHNDQHZDSSURDFKPHYCONA Skin MoistliftingWDEOHWV

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Value Transformation

Generalpurpose
pigments• High-performance products
Functional pigments (pigments for color filters, effect pigments, pigments forcosmetics and pigments for NIP*), LC materials, next-generation display materials• Naturally derived products* Nonimpact printing
Natural colorants

Percentage of Net Sales(FY2018)

Percentage of Net Sales(FY2021)(Forecast)

Percentage of Net Sales(FY2025)(Target)

50%

58%

62%

Fiscal Year 2020 Highlights
DIC Group Offers Pigments that Comply with Food Safety Laws and Requirements and Extensive Lineup of Pigments for Water-Based Inks
$ORQJVLGHWKHJOREDOSRSXODWLRQLQFUHDVHDQGWKHDJLQJRIVRFLHW\IRRGORVVDQGIRRGVDIHW\DUHEHFRPLQJSURJUHVVLYHO\PRUHLPSRUWDQWVRFLDOLPSHUDWLYHV7KH',&*URXSVWULYHVWRKHOSDGGUHVVVXFKLPSHUDWLYHVE\SURYLGLQJSLJPHQWVIRUIRRGSDFNDJLQJLQNVWKDWFRPSO\ZLWKYDULRXVIRRGVDIHW\ODZVDQGUHTXLUHPHQWVJRYHUQLQJWKHXVHRIFKHPLFDOVLQIRRGFRQWDFWPDWHULDOVLQFOXGLQJ(XURSHDQ8QLRQ (8 5HVROXWLRQ$3  DQGWKH6ZLVV2UGLQDQFHRQ0DWHULDOVDQG$UWLFOHVWKHUHE\KHOSLQJHQVXUHIRRGSDFNDJLQJWKDWLVERWKVDIHDQGIXQFWLRQDO
7KHSULQWLQJLQGXVWU\LVWDNLQJYDULRXVVWHSVWRORZHUHQYLURQPHQWDOLPSDFWLQFOXGLQJE\HOLPLQDWLQJHPLVVLRQVRIYRODWLOHRUJDQLFFRPSRXQGV 92&V DQGWRLPSURYHWKHZRUNHQYLURQPHQWIRUSULQWIORRUHPSOR\HHV$NH\PRYHLVWKHVKLIWWRZDUGZDWHUEDVHGLQNV',&RIIHUVDQH[WHQVLYHOLQHXSRISLJPHQWVIRUZDWHUEDVHGLQNVLQPDUNHWVZRUOGZLGH7KHVHSLJPHQWVHQDEOHWKH&RPSDQ\WRSURYLGHDYDVWDUUD\RIFRORUVZKLOHDOVRFRQWULEXWLQJWRPRUHVXVWDLQDEOHSULQWLQJDIC Report 2021 ̲22

Functional Products)XQFWLRQDO3URGXFWVWKDW$GG&RPIRUWTakashi Ikeda

SDGs Goals 6, 12 and 13([HFXWLYH2I¿FHU
3UHVLGHQW)XQFWLRQDO3URGXFWV%XVLQHVV*URXSMain Products［Performance Materials］

7KLVVHJPHQWSURYLGHVFRDWLQJDQG
FRPSRVLWHPDWHULDOVZLWKGLYHUVH
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HSR[\UHVLQVSRO\XUHWKDQHDFU\OLFUHVLQVSODVWLFL]HUVSKHQROLFUHVLQV SDSHUPDNLQJFKHPLFDOVDON\OSKHQROVVXOSKXUFKHPLFDOV¿EHUDQGWH[WLOHFRORUDQWVPHWDOFDUER[\ODWHV［Composite Materials］
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Segment Operating Results
Net Sales(Billions of yen)

Operating Income

269.3

268.6

(Billions of yen)

26.1

236.0
19.2

17.1

193.8

199.3
176.1

91.9

11.6

80.9

FY2019
Japan

101.1

FY2020Overseas

8.3

9.7

8.7

7.5

FY2021 (Forecast)

16.4

FY2019Japan

FY2020

FY2021 (Forecast)

Overseas

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23̲ DIC Report 2021

Product NewsDIC Develops Quick-Acting Driers that Expedite the Curing and Drying of Coatings and Printing Inks
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WKHPRVWFRPPRQO\XVHGDQGWKHPRVWSRZHUIXO+RZHYHUEHFDXVHFREDOWLVKLJKO\WR[LF
DQGKDUPIXOWRWKHHQYLURQPHQWDVZHOODVFRVWO\',&GHYHORSHGWKHDICNATEVHULHVRIFREDOWIUHHDOWHUQDWLYHVZKLFKGHOLYHUHTXDORUEHWWHUSHUIRUPDQFH,QDGGLWLRQWRH[FHOOHQWGU\LQJVSHHGDICNATEGULHUVDUHHQYLURQPHQWIULHQGO\DQGFRVWHIIHFWLYH7KH\DUHDOVRFRPSDWLEOHZLWKERWKVROYHQWDQGZDWHUEDVHGLQNVDQGFRDWLQJVWKXVDGGUHVVLQJDZLGH
UDQJHRIFXVWRPHUUHTXLUHPHQWV3ULQWLQJLQNVPDGHZLWKDICNATE VDPSOHLPDJHDIC Group Company Develops Face Shield for Industrial Helmets that Helps Prevent Droplet Infection
for Pandemic-Era Workplaces:LWKWKHULVNRIWUDQVPLVVLRQDFRQVWDQWLQWKLVWLPHRI&29,'PHDVXUHVWRSUHYHQWGURSOHWLQIHFWLRQDUHDFUXFLDOSDUWRIHYHU\GD\OLIHDVZHOODVEHLQJDVLJQL¿FDQWFRQFHUQ
LQPDQ\ZRUNSODFHV2QSURGXFWLRQIORRUVDQGZRUNVLWHVZKHUHKHOPHWVDUHUHTXLUHG
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LPSRUWDQWFRQFHUQV',&*URXSFRPSDQ\',&3ODVWLFVUHVSRQGHGWRVXFKQHHGVE\OHYHUDJLQJSURSULHWDU\WHFKQRORJLHVWRGHYHORSFace Shield ProDIDFHVKLHOGWKDWFDQEH
DWWDFKHGWRLQGXVWULDOKHOPHWV)HDWXULQJDVKDSHWKDWH[WHQGVEHORZWKHFKLQFace Shield
ProSURYLGHVIXOOSURWHFWLRQDJDLQVWGURSOHWLQIHFWLRQZKLOHDWWKHVDPHWLPHHQVXULQJH[FHOOHQWYLVLELOLW\DQGSHUIRUPDQFH7KHVKLHOGKDVDOVREHHQWUHDWHGWRSUHYHQWIRJJLQJDQG
FDQEHÀLSSHGXSZKHQQRWLQXVHHQKDQFLQJFRPIRUWIRUZHDUHUVFace Shield Pro: Protection Against Droplet Infection

Corporate logo orother helmet-front
marks remain visible

Ensuresvisibility

Treated toprevent fogging

Shield extends
below the chin,providing full
protection
Guarantees
performance

0.8 mm thickness
delivers strength;shield remains firmly inplace even when thewearer moves

One set contains:● Shield (includes polyurethane pad andrubber headband)● Goggle clip (snap-on)
Protects against dropletsfrom the sideCan be flipped up or detachedwhen not in use

Business Strategies Under DIC111
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H[SDQGUHVLQSURGXFWLRQEDVHVLQ$VLD$VZHOOWKH*URXSZLOOSURYLGHKLJKO\SUR¿WDEOHSURGXFWVWKDWPHHWVRSKLVWLFDWHGQHHGVLQQLFKHPDUNHWV
LQWURGXFHQH[WJHQHUDWLRQUHVLQVIRURSWLFDODQGHOHFWURQLFVDSSOLFDWLRQVH[SDQGVDOHVRILQGXVWULDODGKHVLYHWDSHVIRUPRELOHDQGDXWRPRWLYHDSSOLFDWLRQVDQGPDNHDIXOOÀHGJHGHQWU\LQWRWKHPDUNHWIRUODUJHVFDOHKROORZ¿EHUPHPEUDQHVDQGPRGXOHVValue Transformation
Generalprocessed
products
Solvent-based
products• Environment-friendly products
Waterborne resins, polyurethane, UV-curable resins• High-value-added products
Epoxy resins, PPS compounds, industrial adhesive tapes,
hollow-fiber membranes and modules

Percentage of Net Sales(FY2018)

Percentage of Net Sales(FY2021)(Forecast)

Percentage of Net Sales(FY2025)(Target)

59%

63%

75%

Fiscal Year 2020 Highlights
DIC Group Enters into Agreement to Establish Strategic Partnership with DuPont in the Water Treatment Business,Q¿VFDO\HDUWKH',&*URXSHQWHUHGLQWRDQDJUHHPHQWWRHVWDEOLVKDVWUDWHJLFSDUWQHUVKLSZLWK'X3RQWDLPHGDWH[SDQGLQJJOREDOVDOHVRIGHJDVVLQJPRGXOHVIRUZDWHUWUHDWPHQW7KURXJKWKLVSDUWQHUVKLS',&JUDQWV'X3RQW¶V:DWHU6ROXWLRQVXQLWH[FOXVLYHVDOHVULJKWVIRULWV
SEPAREL®VHULHV¶ODUJHGHJDVVLQJPRGXOHVIRULQGXVWULDOZDWHUWUHDWPHQWDSSOLFDWLRQVZLWKWKH
JRDORILQFUHDVLQJVDOHVLQ$VLDWKH8QLWHG6WDWHVDQG(XURSH   'X3RQW PDLQWDLQV D JOREDOO\ OHDGLQJ SRUWIROLR RI ZDWHU SXULILFDWLRQ DQG VHSDUDWLRQWHFKQRORJLHVLQFOXGLQJXOWUDILOWUDWLRQUHYHUVHRVPRVLVDQGLRQH[FKDQJHUHVLQV$V',&¶VFXVWRPHUVLQWKLVILHOGLQFOXGLQJZDWHUWUHDWPHQWHTXLSPHQWPDQXIDFWXUHUVRIWHQXVHLWV
GHJDVVLQJPRGXOHVLQFRPELQDWLRQZLWK'X3RQWSURGXFWVWKLVSDUWQHUVKLSZLOOSRVLWLRQWKH
FRPSDQ\WRH[WHQGWRWDOVROXWLRQVDQGVHUYLFHVDIC Report 2021 ̲24

Special Feature

Product Development
Designed to Create New Value

The DIC Group is working across its various business groups to provide
distinctive solutions that respond to evolving needs related to safety,
peace of mind and the environment and that contribute to sustainability.

Packaging & Graphic

SDGs Goals 3, 7, 12, 13 and 14

Employing Chemical Recycling to Realize a Closed-Loop
Recycling System for Polystyrene Food Containers

Fine chemicals manufacturer DIC and food container manufacturer
FPCO collaborate to implement closed-loop recycling system forpolystyrene that employs chemical recycling.
Value Creation

Closed-loop recycling of polystyrene to reduce the use of resources and energy, and the discharge of waste

Given the increasingly critical nature of the issue of waste plastic, the need to reinforce recycling systems is an increasingly urgent imperative.
In Japan, municipalities separate and collect appropriately disposed-of postconsumer polystyrene food containers, turning them over to recycling firms tobe transformed back into raw materials, but a significant amount is discarded
LPSURSHUO\DVJHQHUDOZDVWHDQGHQGVXSEHLQJLQFLQHUDWHGRUVHQWWRODQG¿OOV$
particular cause for concern is microplastics, fragments of plastics 5mm or less,
DQGVXSHU¿QHQDQRSODVWLFVZKLFKDUHLQJHVWHGE\PDULQHRUJDQLVPVSHUVLVWLQJWKURXJKRXWWKHIRRGFKDLQWRHYHQWXDOO\KDUPWKHKHDOWKRIKXPDQV$SSUR[LPDWHO\RIWKHSRO\VW\UHQHPDQXIDFWXUHGDQGVROGE\WKH&RPSDQ\
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FRQWDLQHUPDQXIDFWXUHUDQGDPDMRUGHVWLQDWLRQIRU',&SRO\VW\UHQH7KHFRPSDQ\ERDVWVDQDWLRQZLGHQHWZRUNRIFROOHFWLRQFHQWHUVDQGWKUHHUHF\FOLQJSODQWVthrough which it recovers and transforms post-consumer foamed polystyrene
IRRGFRQWDLQHUVLQWRQHZIRRGFRQWDLQHUVXVLQJPDWHULDOVUHF\FOLQJ&XUUHQWO\WKH
company pulverizes and melts these containers into polystyrene pellets, with thosefrom white containers recycled into new environment-friendly Eco Tray containers
25̲ DIC Report 2021

and those from colored and/or patterned containers recycled into clothes hangers
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V\VWHPWKDWZLOOPD[LPL]HWKHWZRFRPSDQLHV¶WHFKQRORJLHVDQGFROOHFWLRQDQG
recycling configurations, with the aim of achieving the practical implementation
RIDGYDQFHGUHVRXUFHUHF\FOLQJ7KLVLQLWLDWLYHDOVRVHHNVWRIDFLOLWDWHWKHXVH
of chemical recycling to transform colored and/or patterned polystyrene, whichto date could not be recycled into food containers, facilitating fully closed-loop
UHF\FOLQJRIDOOW\SHVRISRO\VW\UHQHSURGXFWVWhite foamed polystyrene container&RORUHGDQGSDWWHUQHGSRO\VW\UHQHFRQWDLQHU

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WEB

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

A Distinctively
DIC Response

Using depolymerization through chemical recycling to realize closed-loop recycling of polystyrene food containers

Introducing third-party technologies and launching a testing plant in 2022
In addition to polystyrene, colored and/or patterned food trays contain
LQN DQG DGKHVLYHV $V D UHVXOW XVLQJ PDWHULDOV UHF\FOLQJ ZKLFKpulverizes and melts the entire tray, yields black pellets and causes thedeterioration of physical properties, so the commercial value thereof
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FRQWDFWVXUIDFHV,QFRQWUDVWSRO\VW\UHQHLVVXLWHGWRFKHPLFDOUHF\FOLQJ
because it can be easily depolymerized back into its precursor—
styrene monomer—with only minimal energy using pyrolysis, also known
DVWKHUPDOGHJUDGDWLRQ%HFDXVHSRO\VW\UHQHPDGHZLWKFKHPLFDOO\Current Process for Recycling Polystyrene

recycled styrene monomer delivers the same performance and safetylevels as that made with petroleum-derived virgin raw material, there are
QROLPLWVWRSRWHQWLDODSSOLFDWLRQV
',&WKXVSODQVWRLQWURGXFHWKLUGSDUW\WHFKQRORJLHVDQGHTXLSPHQW
for depolymerizing polystyrene back into styrene monomer and to build
DWHVWLQJIDFLOLW\DWLWV<RNNDLFKL3ODQWLQ0LH3UHIHFWXUHWKH&RPSDQ\¶V
SULQFLSDOSRO\VW\UHQHSURGXFWLRQIDFLOLW\7KHWHVWLQJIDFLOLW\LVH[SHFWHGWREHJLQRSHUDWLRQVLQ

DIC’s Polystyrene Business Recycling Strategy
Styrenemonomer

Styrenemonomer

Polystyrene

Polystyrene
products

Partial circular recycling
through materials recycling

Chemicalrecycling

Consumers

Polystyrene

Realization of closed-loop recycling
thanks to depolymerization tostyrene monomer
Polystyrene
products

Collection
Transformation
into polystyrene
pellets

Materials
recycling

Collection
Consumers

Limited to partial circular recycling

By shifting to closed-loop recycling, DIC will
・Contribute to society and increase corporate value, and・Eliminate related risks to business continuity',&¶V<RNNDLFKL3ODQW

The challenge of chemical recycling: A process with outstanding potential
0DWHULDOVUHF\FOLQJLVWKHSULQFLSDOPHWKRGXVHGWRUHF\FOHSODVWLFVLQ
-DSDQ7KHXVHRIFKHPLFDOUHF\FOLQJZKLFKOHYHUDJHVDFKHPLFDO
UHDFWLRQWRUHF\FOHUHVRXUFHVUHPDLQVUDUH+RZHYHUJLYHQWKHOLPLWVRIPDWHULDOVUHF\FOLQJWKHSURJUHVVDQGH[SDQVLRQRIFKHPLFDOUHF\FOLQJ
is essential to realizing the sort of advanced recycling-oriented society
HQYLVLRQHGE\SHRSOHDURXQGWKHZRUOG7KHQHZFORVHGORRSUHF\FOLQJ

KEY PEOPLE from DIC

V\VWHPODXQFKHGE\',&DQG)3&2FDQEHVDLGWREHDOLWPXVWHVWRIWKH
SRWHQWLDORIFKHPLFDOUHF\FOLQJLQWKHIXWXUH7KH',&WHDPH[SHFWVWKH
establishment of new technologies for depolymerizing polystyrene intoVW\UHQHPRQRPHUWRIDFLOLWDWHH[SDQVLRQRIWKHLQLWLDWLYH¶VIRFXVWRLQFOXGH
biomass inks and adhesives and is thus committed to boldly taking theVWHSVQHFHVVDU\WRHQVXUHFRPPHUFLDOL]DWLRQDVTXLFNO\DVSRVVLEOH

A sense of crisis shared by both DIC and FPCO led to this initiative.

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that given the overall trend toward resource recycling, the survival of related businesses in the future
GHSHQGVRQPRYLQJDZD\IURPVLQJOHXVHIRRGFRQWDLQHUV'HSRO\PHUL]DWLRQEDFNWRVW\UHQHPRQRPHU
LVNH\WRWKHFORVHGORRSUHF\FOLQJRISRO\VW\UHQH7KHDELOLW\WRDFKLHYHFORVHGORRSUHF\FOLQJZLOOEHD
FULWLFDOPHDVXUHRI¿QHFKHPLFDOPDQXIDFWXUHUV¶FRUSRUDWHYDOXH:HORRNIRUZDUGWREXLOGLQJDQRSWLPDOFKHPLFDOUHF\FOLQJ±EDVHGPRGHOV\VWHPWKDWFRQWULEXWHVWRDVXEVWDQWLDOUHGXFWLRQRIZDVWHDQG&22
HPLVVLRQVE\FKRRVLQJDQGLQWHJUDWLQJVXSHULRUEDVLFWHFKQRORJLHV)URPOHIWManager, Polystyrene Sales Group, Packaging Material Products Division, DIC Corporation

Ryou Minakuchi

Manager, Polystyrene Sales Group, Packaging Material Products Division, DIC Corporation

Kensuke Shinya

DIC Report 2021 ̲26

Packaging & Graphic
Nashiji Film Made with Biomass Plastic(DIFAREN ® A7440Bio)

SDGs Goals 12 and 13',&KDVGHYHORSHGDQHZIRRGSDFNDJLQJÀOPWKDWLVUHÀQHGDQG
visually appealing while at the same time reduces CO2 emissions.
Value Creation

Expansion of applications for biomass plastics to advance decarbonization

DIC is taking decisive steps to help Japan become carbon neutral by 2050.
With the aim of helping curb global warming, Japan has set a target for reducing
RYHUDOOJUHHQKRXVHJDVHPLVVLRQVWR]HURE\7KHFRXQWU\¶VJRYHUQPHQWKDVSRVLWLRQHGWKHFUHDWLRQRIDPDVVSURGXFWLRQFRQ¿JXUDWLRQWRDGYDQFHWKH
popularity of biomass plastics as a key theme in its plan for achieving this goal
DQGLVHQFRXUDJLQJWKHLQGXVWULDOVHFWRUWRSURPRWHUHODWHGHIIRUWV7KHSODQWVWKDWDFFRXQWIRUDSRUWLRQRIWKHUDZPDWHULDOVXVHGLQELRPDVVSODVWLFVFDSWXUHDWPRVSKHULF&22 through photosynthesis during their growth,
VRHYHQLQFLQHUDWLRQDIWHUXVHZKLFKUHOHDVHV&2 2, does not essentially
LQFUHDVH&22LQWKHDWPRVSKHUH%\OHYHUDJLQJWKHFDUERQQHXWUDOQDWXUHRI
biomass plastics, we are working to reduce our dependence on petroleum
resources, as well as to contribute to the prevention of global warming and
DFFHOHUDWHUHVRXUFHUHF\FOLQJ

Employing biomass: The world of the future
Biomass energy

CO2

Biomass products

Capturing CO2 andrecycling resources
Photosynthesis

6RXUFHBiomass Nippon-DSDQ2UJDQLFV5HF\FOLQJ$VVRFLDWLRQDeveloping DIFAREN ® A7440Bio, which boasts a 20% biomass content
In addition to protecting contents and offering suitability for packaging,¿OPVXVHGLQIRRGSDFNDJLQJPXVWGHOLYHUDPRQJRWKHUVKHDWUHVLVWDQFH
KHDWVHDODELOLW\ULJLGLW\IOH[LELOLW\FROGUHVLVWDQFHDQGHDV\SHHODQG
HDV\RSHQSURSHUWLHV,Q',&GHYHORSHGFRH[WUXGHGPXOWLOD\HUILOPVIRUSDFNDJLQJLQ
which multiple resins with different characteristics are laminated together
LQDVLQJOHSURFHVV8VLQJWKHVDPHPDQXIDFWXULQJSURFHVVWKH&RPSDQ\
has also developed the DIFAREN ®$VHULHVRINashiji SHDUVNLQWH[WXUHG KLJKO\DWWUDFWLYHHPERVVHGPDWWHILOPVZLWKDVXUIDFHIHHO
reminiscent of traditional Japanese paper, which has earned high marks
LQWKHDUHDRIIRRGSDFNDJLQJ$UHFHQWDGGLWLRQWRWKLVOLQHXSGHYHORSHG
in line with our commitment to promoting decarbonization, is DIFAREN ®
27̲ DIC Report 2021$%LRPDGHZLWKELRPDVVSODVWLFDQGUHVLQ7KLVQHZ¿OPWKH¿UVW
in the DIFAREN ®OLQHXSWREHFHUWL¿HGXQGHU-DSDQ2UJDQLFV5HF\FOLQJ$VVRFLDWLRQZDVODXQFKHGLQ$XJXVWDIFAREN ®$%LRNashijiELR¿OP%LRPDVV0DUNVKRZLQJbiomass content
7KH%LRPDVV0DUNLVDQHQYLURQPHQWIULHQGO\SURGXFW
labeling program in Japan that certifies biomassderived products compliant with key laws, regulations
DQGVWDQGDUGVIRUTXDOLW\DQGVDIHW\A Distinctively
DIC Response$FKLHYLQJDYLVXDOO\DSSHDOLQJ¿OPZLWKDELRPDVVFRQWHQWXVLQJH[LVWLQJSURGXFWLRQHTXLSPHQW

Pursuing a balanced combination of the physical properties of petroleum-based and biomass plastics
Nashiji film has a surface feel reminiscent of paper, but produces nopaper dust and so is hygienic, as a result of which it is attracting a great
GHDORIDWWHQWLRQQRWRQO\LQ-DSDQEXWDOVRDFURVV$VLDWKH$PHULFDV
DQG(XURSH8QIRUWXQDWHO\SURGXFLQJNashiji¿OPZLWKELRPDVVSODVWLFVand maintaining its performance properties and visual appeal has proven
GLIILFXOW$GGLQJELRPDVVWRSULQFLSDOSHWUROHXPEDVHGUDZPDWHULDOVXSVHWVWKHEDODQFHRISURSHUWLHVFDXVLQJDYDULHW\RILVVXHV7RRYHUFRPHWKLV',&HQJLQHHUVVWXGLHGWKHPLFURVWUXFWXUHRIWKH¿OPDQGVHDUFKHG

for the optimal resin–biomass formulation through a process of trial and
HUURU7KHQPDNLQJIXOOXVHRIPXOWLOD\HU¿OPIRUPLQJWHFKQRORJ\FXOWLYDWHG
RYHUPDQ\\HDUVRIFROODERUDWLRQZLWK&$67),/0-$3$1&2/7'',&VXFFHHGHGLQSURGXFLQJDIFAREN ®$%LRZKLFKERDVWVD
ELRPDVVFRQWHQW7KH&RPSDQ\DOVRDFKLHYHGPDVVSURGXFWLRQRIWKLV
Nashiji¿OPPDGHZLWKELRPDVVZKLFKGHOLYHUVWKHVDPHIXQFWLRQDOLW\DQG
WH[WXUHDVSHWUROHXPEDVHGNashiji¿OPZLWKRXWKDYLQJWRPRGLI\H[LVWLQJHTXLSPHQWLQDQ\ZD\DIFAREN ® A7440Bio Production Method and Composition (Example)
Extruder #1

DIFAREN ® A7440Bio

Raw material #1

T die(Build up of layers)

Extruder #2

Raw material #2

Raw material #2

Extruder #3

Raw material #1

Cooling roll
Raw material #3

Raw material #3

Heating and melting

Increasing biomass content of packaging material by using environment-friendly inks and adhesives
In addition to DIFAREN ®$%LR QXPHURXV RWKHU HQYLURQPHQW
IULHQGO\',&*URXSSURGXFWVKDYHHDUQHGFHUWLILFDWLRQXQGHU-DSDQ2UJDQLFV5HF\FOLQJ$VVRFLDWLRQ7KHVHLQFOXGHELRPDVVLQNVLQFOXGLQJFINART%0JUDYXUHLQNVIRUODPLQDWLRQGHYHORSHGE\',&*UDSKLFVand adhesives such as DICDRY/;%0XQGHUVFRULQJ',&¶VDELOLW\
to provide inks, adhesives and films that support environment-friendly
SDFNDJLQJ 8VH RI KHDW–sealable ELD[LDOO\ RULHQWHG SRO\SURS\OHQH
DIC Group Biomass-Based Products (Examples)%233 VHDODQWILOPLQNVDQGDGKHVLYHVPDGHZLWKELRPDVVGHULYHGUDZ
materials on a DIFAREN ®$%LREDVHPDNHVLWSRVVLEOHWRFUHDWHD
SDFNDJLQJILOPZLWKDQHYHQKLJKHURYHUDOOELRPDVVFRQWHQW7KHDELOLW\
to provide a full range of biomass packaging materials is a distinctive
FRPSHWLWLYHVWUHQJWKHQMR\HGE\WKH',&*URXSZKLFKGHYHORSVDQG
PDQXIDFWXUHVLQNVDGKHVLYHVDQGILOPVIRUSDFNDJLQJDSSOLFDWLRQV

Base film:
DIFAREN ®
A7440Bio

Base film

A7440Bio

Adhesive
Ink
Ink:
FINART BM
gravure ink

KEY PEOPLE from DIC

Adhesive:
DICDRY
LX-500 BM

Sealant film Heat-sealable BOPP Film
(Adherend)([DPSOHRIDIFAREN ®$%LREDVHGSDFNDJLQJPDWHULDO

Adherend

This is a groundbreaking product that responds to the needs of customers who want to differentiate theirproducts in terms of environment-friendly performance.

7KLVSURMHFWZDVDVHULHVRIVWXPEOLQJEORFNV(YHU\WKLQJZRXOGEHILQHDWWKHODEOHYHOEXWRQWKH
SURGXFWLRQOLQHSUREOHPVZRXOGDULVH$QGWKLVGLGQ¶WKDSSHQMXVWRQFHRUWZLFHEXWPDQ\WLPHV6R
ZKHQZH¿QDOO\DFKLHYHGPDVVSURGXFWLRQLWZDVSUHWW\HPRWLRQDO$WDUHFHQWH[KLELWLRQWKHUHDFWLRQWR
this new product was tremendously positive among customers who want to differentiate their products in
WHUPVRIHQYLURQPHQWIULHQGO\SHUIRUPDQFH7KDWVDLGZHDUHQRWUHVWLQJRQRXUODXUHOV7KHUHDUHPDQ\
ELRPDVVGHULYHGUDZPDWHULDOVLQWKHZRUOGDQGLWLVRXUPLVVLRQDVDPDQXIDFWXUHURI¿QHFKHPLFDOVWRPDVWHUWKHLUXVH$QRWKHUFKDOOHQJHLQWKH\HDUVDKHDGZLOOEHWRUHGXFHWKHWKLFNQHVVRIWKLV¿OPEHORZȝPZKLFKZLOOFRQWULEXWHWRWKHUHGXFWLRQRIZDVWH%RWKDUHKLJKKXUGOHVEXWZHZLOOFDSLWDOL]HRQRXU
H[SHULHQFHWRVWULYHIRUDQHYHQKLJKHUOHYHORIVXVWDLQDELOLW\)URPOHIWManager, Films Sales Group, Packaging & Graphic Business Group, DIC Corporation
Packaging Materials Technical Group 4, Packaging Materials Technical Division, DIC Corporation

Masaharu Ito

Tomohisa Kida

DIC Report 2021 ̲28

Healthcare
An FFC that Improves the Skin’s Barrier
Function from the Inside Out (PHYCONA Skin Moistlifting Tablets)

SDGs Goals 3 and 12

DIC has developed a new “edible” skin-care product, made withphycocyanin extracted from Spirulina blue-green algae, that
addresses various skin problems.
Value Creation

Edible skin care: A new approach to increasing skin’s moisture retention

DIC’s new PHYCONAVXSSOHPHQWRIIHUVDVDIHDOWHUQDWLYHIRULQGLYLGXDOVZKRIHHOWKDWWKHUHDUHOLPLWVWRWKHEHQHÀWVRIWRSLFDOVNLQFDUHSURGXFWVYouthful and healthy skin is the earnest desire of many people—
ZRPHQLQSDUWLFXODU+RZHYHUWKHUHDOLW\LVWKDWPRVWSHRSOHVHH
WKHLUVNLQEHJLQWRORVHPRLVWXUHLQWKHLUV7KLVLVEHFDXVHWKH
VNLQ¶VEDUULHUIXQFWLRQZKLFKSUHYHQWVPRLVWXUHLQWKHVNLQIURPHYDSRUDWLQJGHWHULRUDWHVZLWKDJH:KHQWKHVNLQ¶VEDUULHUIXQFWLRQLV
compromised, whether due to age, irregular lifestyle or poor nutrition,
VNLQEHFRPHVGU\)RUWKLVUHDVRQPDQ\SHRSOHIHHOWKDWWKHUHDUH

OLPLWVWRWKHEHQH¿WVRIWRSLFDOVNLQFDUHSURGXFWVDQGWKDWGU\VNLQLVWKHPDLQSUREOHPWKH\IDFHUHJDUGOHVVRIWKHVHDVRQ7KH',&*URXSKDVDSSOLHGLWVH[SHULHQFHLQWKHFXOWLYDWLRQRI6SLUXOLQDZKLFKis already used widely in dietary supplements and food products,
recognizing the potential of this edible nutrient-rich blue-green algae
WRLPSURYHVNLQ¶VPRLVWXUHUHWHQWLRQ

Developing PHYCONA, a skin-care supplement that enhances the skin’s barrier function from the inside out)RFXVLQJRQWKHDFWLRQRQWKHVNLQRISK\FRF\DQLQDSLJPHQW±
SURWHLQFRPSOH[IRXQGLQ6SLUXOLQDZKHQFRQVXPHG',&IRXQG
WKDW LW LPSURYHV WKH VNLQ¶V EDUULHU IXQFWLRQ ZKLFK VXSSUHVVHVWUDQVHSLGHUPDOZDWHUORVV 7(:/ &DSLWDOL]LQJRQLWVSDWHQWHGKLJK\LHOGH[WUDFWLRQWHFKQRORJLHVIRUKLJKJUDGH&SK\FRF\DQLQDQG
DOORSK\FRF\DQLQIURP6SLUXOLQD',&VXFFHHGHGLQFRPPHUFLDOL]LQJ
a new skin-care supplement, dubbed PHYCONA,QDZRUOGILUVW

WKH&RPSDQ\DOVRFRQGXFWHGDFOLQLFDOWULDOWRYHULI\WKHHIIHFWVof this new supplement as a food product with phycocyanin as aningredient, scientifically demonstrating its ability to enhance the
VNLQ¶V PRLVWXUH UHWHQWLRQ $V D FRQVHTXHQFH DQ DSSOLFDWLRQ WR
have PHYCONADSSURYHGDVWKHILUVW6SLUXOLQDGHULYHG)RRGZLWK)XQFWLRQDO&ODLPV ))& ZDVDFFHSWHGDQGLQ2FWREHU',&
launched PHYCONA Skin MoistliftingWDEOHWVHow Phycocyanin Affects the Skin
Moisture【Skin lacks moisture】
The skin’s barrier function is compromisedby various factors, including lifestyle,stress and age. As a result, the skin loses
moisture and its ability to suppress theingress of foreign substances.

29̲ DIC Report 2021

Epidermis

Phycocyanin acts to improve
the skin’s barrier function fromthe inside out, protecting
moisture from escaping.

【Skin is sufficiently moisturized】

Moisture
Epidermis

The barrier function of the stratum
corneum protects the skin from external
stimuli such as UV light. Because it holds
sufficient moisture, the skin is firm andlustrous.

A Distinctively
DIC Response/DXQFKLQJWKHZRUOG¶V¿UVW6SLUXOLQDGHULYHG))&

Properly communicating evidence-based functions and product value
In commercializing PHYCONA ',& HPSKDVL]HG GHPRQVWUDWLQJ WKHSURGXFW¶VVFLHQWLILFDOO\SURYHQIXQFWLRQDOLW\DQGFRUUHFWO\FRPPXQLFDWLQJ
WKHFRPPHUFLDOYDOXHWKDWVHWVLWDSDUWIURPRUGLQDU\KHDWKIRRGSURGXFWV
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government, while manufacturers must prove safety and effectiveness
EDVHGRQVFLHQWLILFHYLGHQFHHVWDEOLVKULJRURXVSURGXFWLRQDQGTXDOLW\FRQWUROV\VWHPVDQGFROOHFWLQIRUPDWLRQRQDGYHUVHKHDOWKHYHQWV

9HULI\LQJIXQFWLRQDOLW\WKURXJKFOLQLFDOWULDOVRIWKHÀQLVKHGSURGXFW$QLPSRUWDQWFRQVLGHUDWLRQZDVKRZWRYHULI\IXQFWLRQDOLW\7ZRPHWKRGVFRXOG EH XVHG 6\VWHPDWLF OLWHUDWXUH UHYLHZ ZKHUHE\ IXQFWLRQDOLW\ LV
HVWLPDWHGEDVHGRQH[LVWLQJUHVHDUFKUHSRUWVDQGFOLQLFDOWULDOVRIWKH¿QLVKHGSURGXFWZKHUHE\WULDOGDWDLVFRPSLOHGLQWRDQDFDGHPLFSDSHUDQG
VXEPLWWHG',&DQG',&/LIHWHFFKRVHWKHODWWHUPHWKRG7KHUHDUHVWLOOIHZ
studies on phycocyanin and as a result still not enough research reports to
FRXQWDVVFLHQWLILFHYLGHQFH$FFRUGLQJO\DOWKRXJKFOLQLFDOWULDOVDUHPRUH
laborious and costly than a systematic literature review, the companies
UHVROYHGWKDWWKLVZDVWKHEHVWZD\WRDFFXUDWHO\FRQ¿UPIXQFWLRQDOLW\DQGWR
market PHYCONAZLWKFRQ¿GHQFHLQLWVSHUIRUPDQFH
,QWKHWZRFRPSDQLHVFRQGXFWHGDFOLQLFDOWULDOXVLQJPHYCONAPDQXIDFWXUHGRQDQH[SHULPHQWDOEDVLVXVLQJDQDFWXDOSURGXFWLRQOLQH$
WRWDORIVXEMHFWV DOOIHPDOH DJHG±ZLWKGU\VNLQZHUHGLYLGHGLQWRD

treatment group, which received phycocyanin, and a placebo group, which
GLGQRW&KDQJHVLQ7(:/²DQLQGLFDWRURIWKHVNLQ¶VEDUULHUIXQFWLRQ²
ZHUHPRQLWRUHGRYHUDSHULRGRIHLJKWZHHNV7ULDOUHVXOWVVKRZHGWKDWWKH
PHYCONAJURXSVDZDVLJQL¿FDQWGHFUHDVHLQ7(:/7ULDOGDWDZDVFRPSLOHG
LQWRDQDFDGHPLFSDSHUDQGLQ-XO\WKHDSSURSULDWHDSSOLFDWLRQVZHUH
submitted, resulting in PHYCONAEHFRPLQJWKH¿UVW))&FRQWDLQLQJ6SLUXOLQD
GHULYHGSK\FRF\DQLQ,Q)HEUXDU\',&EHFDPHWKHILUVWFRPSDQ\WR
obtain a use patent for “a food product containing phycocyanin as an active
LQJUHGLHQWWKDWKDVVNLQPRLVWXUHLPSURYLQJDQGRWKHUEHQH¿FLDOSURSHUWLHV´$
XVHSDWHQWLVJUDQWHGIRUDQH[LVWLQJVXEVWDQFHZKHQDSUHYLRXVO\XQNQRZQXVH
LVGLVFRYHUHG\LHOGLQJQHZDSSOLFDWLRQV7KLVQHZHVWSDWHQWZLOOHQDEOH',&WR
realize a considerable competitive advantage in the development and sales of
SK\FRF\DQLQEDVHGVNLQFDUHDQGUHODWHGIRRGSURGXFWV&OLQLFDO5HVHDUFKLQWRWKH%HQHÀWVRI3K\FRF\DQLQSkin Moisture
Good
Skin elasticity

Good
S k i n m o i s t u re

＊

15

10

5

Skin Elasticity

10-point increase in elasticity after 4 weeks
20

Treatment group (received phycocyanin)
Placebo group (did not receive phycocyanin)

3

15

Skin health is key toa translucent complexion

Skin Gloss
Treatment group (received phycocyanin)
Placebo group(did not receive phycocyanin) ＊＊

15

＊

＊
＊＊

10

5

10

5

Day of administration

4 weeks
after administration

8 weeks
after administration

Moistness is explained as representing the combinationof hydration and smoothness. The trial showed a gradualimprovement in moistness for the treatment group. Aftereight weeks, the difference was significant.

-5

Po o rPo o rPo o r-50

Day of administration

4 weeks
after administration

8 weeks
after administration

Sagging skin and deepening nasolabial folds are telltale signs ofaging. In other words, the internal factors that keep skin firm andsupple and are key to a youthful appearance. The treatmentgroup saw a sharp increase in firmness after four weeks.

0-5Day of administration

4 weeks
after administration

8 weeks
after administration

Improvement in theappearance of wrinkles

Confirmed decrease in wrinkle depth
500
460
420

＊

380
340
300
(μm)

0

A major factor behind how
old one looks

415-point increase in gloss after 4 weeks
20

Treatment group (received phycocyanin)
Placebo group(did not receive phycocyanin)Good

10-point increase in moistness after 8 weeks
20

Firmness creates a youthfulappearance

Deep

2

Shallow Maximum wrinkle depth

Hydrating action helps the skinretain moistureS k i n g lo s s

1Placebo group(did not receive phycocyanin)

Treatment group(received phycocyanin)

Dryness is a major cause of wrinkles. After eight weeks, a difference in maximum wrinkle
depth measured using the replica method was discernible between the two groups.
Fine vertical lines on
the temples becameless visible, making theskin look smoother.

Gloss is a sign of healthy skin, indicating moistness, elasticity
and vitality. The treatment group saw a 15-point increase ingloss after four weeks.
Day of administration

8 weeks after administration

Clinical trial: Changes in moisture, elasticity and gloss were measured using the Visual Analog Scale (subjective evaluation) from the day of administration (average value ± standard deviation) **P＜0.01 *P＜0.05
Source: Yasuyuki Imai et al, Japanese Pharmacology & Therapeutics, No. 47, Issue 11 (2019) 1833–1840

KEY PEOPLE from DIC

Our goal was to offer something entirely new.

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this product really is, we recognized the need to boost general awareness of its main ingredient,
SK\FRF\DQLQ:HDUHFXUUHQWO\ZRUNLQJWRLQFUHDVHUHFRJQLWLRQWKURXJKWKHPHGLD7KHOHYHORILQWHUHVWIURPERWKPHQDQGZRPHQLQWKHLUVDQGROGHUKDVEHHQPXFKKLJKHUWKDQH[SHFWHGXQGHUVFRULQJWKHIDFWWKDWSURSHUVNLQFDUHLVRILQWHUHVWWRSHRSOHRIDOODJHV/RRNLQJDKHDGZHZLOOFRQWLQXHVWULYLQJWRJDLQDEHWWHUJUDVSRIFXVWRPHUQHHGVZKLOHDWWKHVDPHWLPHH[SDQGLQJRXURSHUDWLRQVLQWKH
KHDOWKFDUH¿HOG²DQLPSRUWDQWJRDOXQGHURXUFXUUHQWPHGLXPWHUPPDQDJHPHQWSODQ²ZLWKDYLHZWRH[SDQGLQJLQWR$VLDDVZHOODVLQWRWKH$PHULFDVDQG(XURSH
)URPOHIWManager, Health Care Products Business Planning & Development Group and Health Care Technical Group,
Color Material Products Division, DIC Corporation

Yasuyuki Imai

Product Manager, Health Care Products Group, Color Material Products Division, DIC Corporation

Taro Ichimoto

DIC Report 2021 ̲30

Sun Chemical’s Activities
Sun Chemical powers through the pandemic.
The devastating global impact of COVID-19 made 2020 a year unlike any other—a year with
unprecedented business challenges. Despite these obstacles, Sun Chemical showed agility in its ability
to pivot business operations to implement crucial health and safety procedures for its employees while
complying with all regulations and maintaining unmatched support for customers across the globe.
By prioritizing customers, employees and local communities, Sun Chemical successfully adapted tomeet the many challenges introduced by COVID-19.
Myron Petruch
President and CEO, Sun Chemical■ Managing Volatile Supply Chains to Deliver for Customers
The pandemic caused significant disruption in global supply chains as well as price volatility in some key raw material categories.
Shifting demand away from industrial applications to healthcare needs exerted pressure on solvents. Additionally, the global supply of
pigments, pigment intermediates and various specialty chemicals were threatened by compromised distribution channels and limited
available labor.
All regions of the world experienced a heavy impact in their supply chains this year, many of which are still seeing challenges.
Although Sun Chemical monitors supply chain needs in all regions of the world, COVID-19 triggered the organization to monitor
purchase orders and supply positions daily, especially as the situation changed rapidly and as supplies were impacted by regional
COVID-19 outbreaks.
Through its strong global footprint, Sun Chemical responded to the constant shifts in the industry to best support customers with areliable supply. Much of Sun Chemical’s portfolio supports essential businesses and Sun Chemical focused its efforts to support thoseareas throughout the pandemic and beyond.

■ Prioritizing the Safety of Employees and their Families
In addition to meeting the supply needs of customers, Sun Chemical equally prioritized thesafety of its employees.
Sun Chemical quickly modified its operations in response to the pandemic. On-site work
was greatly reduced as non-lab and non-manufacturing personnel began to work remotely
to reduce the population density in all laboratories and production sites. The employees whotransitioned to working from home were provided the necessary tools and safety guidance towork remotely.
Additionally, custodial staff increased disinfection and concentrated on frequently touchedobjects to protect on-site employees.
Sun Chemical continues to monitor safety regulations, as well as the changing economic andhealth landscape to better understand what is best for customers and employees.

Masking up: Exceeding customer requirements, while keeping
employees safe

■ Meeting the Needs of the Community
Sun Chemical cares deeply about the health and well-being of employees, customers andpartners, as well as the communities in which they live and work around the world. Afterlearning about the lack of personal protective equipment due to increased demand, Sun
Chemical’s Carlstadt facility in New Jersey produced hand sanitizer for various locations acrossNorth America.
Our talented and dedicated employees have spent the last year working extremely hard,either at our manufacturing plants, our labs or remotely from their homes, to make sure that we
continue to provide the quality products and services that our customers have come to depend
upon from Sun Chemical.
We care deeply about the health and well-being of our customers and partners, as well as thecommunities in which they and their employees live and work around the world.

31̲ DIC Report 2021

Carlstadt: New safety protocols and sanitation stations
on-siteDIC Asia Pacific’s Activities
DIC Asia Pacific is focused on safety and stable growth.
The pandemic has taught us all not to take safety for granted. Though initially ill-prepared, focused on
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environments. While the pandemic did cause disruptions and confusion, DIC Asia Pacific entities
remained focused on delivering quality products and services.

Paul Koek
Managing Director, DIC Asia Paciﬁc Pte Ltd■ Tackling the Pandemic
The year 2020 was truly unprecedented. While many nations are now rolling out vaccination programs, and over 2.45 billion people
have received at least one dose, COVID-19 will likely persist for some time, affecting both our personal lives and the economy.
The virus reached pandemic status alarmingly fast, infecting over 177 million, taking over 3.83 million lives and pummeling the
global economy. And just as we thought the virus was under control, new variants lead to second and third waves, resulting infurther lockdowns and plant closures.

■ Prioritizing Employee Safety and Stable Growth
The pandemic has taught us all to be constantly vigilant and not take safety for granted. Though initially ill-prepared, focused on safety, our
DIC Asia Pacific team has worked tirelessly to draft new management guidelines and practices, effectively disseminated, and implemented.
Thus, we managed to curb the spread of COVID-19 and secure safe working environments. While the pandemic did cause disruptions andconfusion, DIC Asia Pacific entities have remained focused on delivering the quality products our customers depend on.
Despite the pandemic, DIC Asia Pacific had to make some difficult but necessary decisions. Sadly, we had to transition theAustralian and New Zealand news inks business from a manufacturing to a trading model. We did so successfully and ahead of plan.
In India—where a steep decline in publishing wiped away 70% of normal average volumes—Team DIC has managed operating
profits month-on-month since April 2020. We accomplished this through value engineering, effective cost mitigation and working
capital management. Moreover, DIC India Ltd. was the first to initiate digitalization, introducing the
Ink Master Mobile Application to address day-to-day customer queries.

■ Meeting our Customers and Community Needs
In Thailand, through strong relationships with Global Key Account partners, our DIC colleagues
at Siam Chemical Industry Co., Ltd., managed to secure a large new contract. In Malaysia,
even with virus cases spiking, all entities performed well. Exemplifying DIC CSR, the region
participated in the first regionally coordinated CSR program, with many employees taking time to
distribute DIC Health Packs to the underprivileged and essential workers. This was The DIC Way
in action.

DIC India■ Safety First
Overall, the pandemic impact has been severe, but through our actions, particularly in-plant,
production teams, in-plant technicians, quality control and lab members, and safety officers
helped grow revenue by 6% month-on-month since May 2020. Together with team members
working remotely to coordinate the support functions, DIC Asia Pacific has maintained an
exemplary safety record.
Of course, we had failures. However, we were not disheartened and continued to work evenharder. The Asia–Pacific region managed to achieve a total recordable injury rate (TRIR) of 0.86—
the lowest in the DIC Group and a major achievement, given that our score was over 2.0 the past
two years. We achieved this by focusing on Safety First at all levels, with over 90% of employees
participating in safety e-learning programs.

DIC Compounds Sdn. Bhd. (Malaysia)

Siam Chemical Industry

DIC Report 2021 ̲32

DIC (China)’s Activities
Despite COVID-19, DIC (China) continues working to ensure a stable supply of
products and services while prioritizing the safety and health of its employees.
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ability to respond swiftly and appropriately. To prevent the spread of infection within the DIC Group, DIC (China) Co., Ltd., took prompt, decisive
steps to protect the safety of workplaces across the PRC. In addition to establishing a framework for safeguarding employee well-being, thecompany focused on securing supply chains to ensure the reliable delivery of products and services to its customers. Despite harsh conditions,',& &KLQD DQGWKHFRPSDQLHVRIWKH',&*URXSLQWKH35&FRQWLQXHZRUNLQJWRIXO¿OOWKHLUUHVSRQVLELOLWLHVDVPHPEHUVRIVRFLHW\
Mao Jianwei
General Manager, DIC (China) Co., Ltd., and DIC (Shanghai) Co., Ltd.

■ Putting the Health and Safety of Employees and their Families FirstThe PRC’s 2020 Lunar New Year holiday began on January 23. While the holiday was originally scheduled to end
on January 30, signs of the emergence of a novel coronavirus prompted the Chinese government to extend theholiday until February 9 in a bid to contain the outbreak. During this period, DIC (China) formulated guidelines formeasures to be implemented, which were communicated to Group companies under its supervision together with
instructions for restarting operations in a manner that guaranteed compliance. These guidelines comprised detailed
directions for prohibiting overseas business trips and curtailing domestic business travel, as well as for encouraging
telework where possible, meticulously staggering working hours for employees required to be on-site, conducting
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washing, enforcing social distancing in the workplace, disallowing use of air conditioning, stepping disinfection
and installing partitions in staff cafeterias, restricting outsider access and precisely recording data on visitors, andforbidding multiperson gatherings and dining in groups. DIC (China) also conducted company-by-company checks ofadherence to these guidelines to protect the safety of DIC Group workplaces across the region. Since the beginningof the pandemic, no infections have been reported among Group employees or their families in the PRC.

Partitions installed in the employee cafeteria at Qingdao
DIC Liquid Crystal Co., Ltd.

■ Ensuring a Stable Supply of Products and Services
In addition to establishing a framework for safeguarding employee well-being, DIC (China) focused on securing
supply chains to ensure the reliable delivery of products and services to its customers. To guarantee sufficient
access to raw materials despite the pandemic, the company provided demand information to suppliers and adjusted
inventories of those raw materials for which supplies were likely to fall short. On the production front, employees
were moved around as necessary to avoid the excessive concentration of production personnel at particular sites
and facilitate the responsiveness necessary to facilitate on-time production. Steps were also taken to enhance
the safety of logistics, including disinfecting the cargo boxes of transport trucks to dispel customer concerns and
XVLQJGHVLJQDWHGORJLVWLFV¿UPGULYHUVZKRZHUHSURYLGHGZLWKWUDLQLQJRQLQIHFWLRQSUHYHQWLRQDQGJLYHQZHHNO\polymerase chain reaction (PCR) tests. With the expectation that transport could be delayed, customers were asked
in advance to secure inventories. By grasping possible vulnerabilities and implementing preventative measures, the
DIC Group in the PRC was able to achieve annual sales of a level comparable to 2019, evidence of the success of
its efforts to maintain deliveries of products and services to its customers.

■ Working Together to Meet Community Needs
The experiences of the past year under COVID-19 also served to reinforce the understanding of DIC Group
companies in the PRC of the importance of valuing the ties that bind people together. In addition to masks,
companies distributed Spirulina extract to employees to help strengthen their immune systems. In the early months
RIWKHSDQGHPLFZKHQPDVNVDQGRWKHUHVVHQWLDOVZHUHGLI¿FXOWWRFRPHE\VKLSPHQWVRIVXFKLWHPVIURP-DSDQhelped ensure business continuity in the PRC. When the virus began spreading in Japan, DIC Group companies
returned the favor, dispatching shipments of masks and other items to corporate headquarters in Tokyo, as wellas to individual production sites. These companies also worked to contribute to local communities. For example,
97 employees of Changzhou Huari New Material Co., Ltd., volunteered to donate blood to help replenish supplies
depleted by the pandemic. Changzhou Huari New Material also donated 20 modular baths to a temporary hospital in
Hubei Province.
Although vaccination rollouts have begun around the world, when the COVID-19 pandemic will come to an end
remains uncertain. DIC (China) and the companies of the DIC Group in the PRC pledge to continue working as one
to assist their customers, as well as to contribute to society as a whole.
33̲ DIC Report 2021

Employees at Shenzhen-DIC Co., Ltd., participate in asocially distanced morning assembly

Employees of Changzhou Huari New Material who
volunteered to donate blood

Truck delivering modular baths donated by
Changzhou Huari New Material to a temporary
hospital in Hubei ProvinceCorporate Governance
Basic Approach to Corporate Governance
The DIC Group identifies the purpose of corporate governance as being to ensure effective decision making pertaining to its
management policy of achieving sustainable corporate growth and expansion through sound and efficient management, whileat the same time guaranteeing the appropriate monitoring and assessment of and motivation for management’s execution ofbusiness activities. With the aim of achieving a higher level of trust on the part of shareholders, customers and other stakeholders
and enhancing corporate value, the DIC Group also promotes ongoing measures to reinforce its management system and ensure
effective monitoring thereof.

| Policy on Corporate Governance
DIC has prepared a Policy on Corporate Governance, which it has published on its global website.
Policy on Corporate Governance WEB https://www.dic-global.com/pdf/ir/management/governance/governance_en.pdf

Corporate Governance Organization| Corporate Governance Organization
As a company with internal auditors, DIC
has a Board of Directors and an Audit &Supervisory Board. The Company has also
instituted an executive officer system andhas established a Nomination Committee,a Remuneration Committee, an Executive
Committee, a Sustainability Committee anda Quality Committee.

1

General Meeting of Shareholders
Appointment

Appointment

Board of Directors

Audit

Nomination Committee
Remuneration Committee

Appointment

Audit & Supervisory Board

Cooperation

Audit

Accounting auditors
Accounting audit【Execution of business activities】
President and CEO
Sustainability Committees
Quality Committee

Cooperation

Cooperation

Executive Committee

Business groups, New Business Development Headquarters,
Production Management Unit, Technical Management Unit,
R&D Management Unit, headquartersʼ administrative units, sites,
Group companies

Internal Control Department
Internal audit Responsible Care Department
Quality Assurance Department

Board of Directors

To accelerate decision making and reinforce corporate governance, nine directors have been elected to the Board of Directors. Of the nine, three areoutside directors (one of whom is female). In principle, the Board meets once monthly. The Board of Directors is responsible for making decisions on
matters stipulated in the Companies Act of Japan, and in DIC’s own regulations, as requiring Board-level approval, as well as for monitoring the execution
RIEXVLQHVVDFWLYLWLHVDVUHSRUWHGE\WKHH[HFXWLYHRI¿FHUV
2Nomination Committee

The Nomination Committee was established as an internal committee of the Board of Directors with the aim of ensuring objectivity in the nomination of
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FRPPLWWHH¶V¿YHPHPEHUVDUHLQGHSHQGHQWRXWVLGHGLUHFWRUVZKLOHWKHSRVLWLRQRIFRPPLWWHHFKDLUPDQLV¿OOHGE\DQLQGHSHQGHQWRXWVLGHGLUHFWRU
3

Remuneration Committee

The Remuneration Committee was established as an internal committee of the Board of Directors with the aim of enhancing the objectivity of proceduresfor determining executives’ remuneration. The committee, which has been entrusted with responsibility for determining the salaries and bonuses of
directors and executive officers, meets as necessary. At present, three of the committee’s five members are outside directors, while the position of
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4

Executive Committee

The Executive Committee was established as a body to deliberate issues related to the execution of business activities. In principle, the committee meets
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executive vice president and the general managers of the management units, New Business Development Headquarters and product divisions. As partof the auditing process, one Audit & Supervisory Board member also attends Executive Committee meetings. Details of deliberations at meetings and theresults thereof are reported to the Board of Directors.
5

Sustainability Committee

The Sustainability Committee, which functions as an advisory body, meets several times annually to formulate sustainability policies and activity plans, as well as
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and CEO, the executive vice president, the general managers of the management units, New Business Development Headquarters and product divisions, andthe managing directors of regional headquarters. As part of the auditing process, one Audit & Supervisory Board member also attends Sustainability Committee
meetings. Details of deliberations at meetings and the results thereof are reported to the Board of Directors.

DIC Report 2021 ̲34

6Quality Committee

The Quality Committee is a body that deliberates Group quality policies, important measures and key issues. In principle, the committee meets once each quarter
WRUHSRUWRQWKHVWDWXVDQGSURJUHVVRITXDOLW\PDQDJHPHQW7KH4XDOLW\&RPPLWWHHFRQVLVWVRIH[HFXWLYHRI¿FHUVGHVLJQDWHGE\WKH%RDUGRI'LUHFWRUVIURPDPRQJthe president and CEO, the executive vice president and the general managers of the management units, New Business Development Headquarters and productdivisions. As part of the auditing process, one Audit & Supervisory Board member also attends Quality Committee meetings. Details of deliberations at meetings
and the results thereof are reported to the Board of Directors.
7

Audit & Supervisory Board

The Audit & Supervisory Board comprises four members, including two outside members (one of whom is female). In principle, the Audit & Supervisory Board meets once
monthly. Board activities include debating and determining auditing policies and auditing plans. Board members also report on the results of audits conducted, as well as
attend important meetings, including those of the Board of Directors, the Executive Committee and the Sustainability Committee, meet with representative directors on a
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the performance of their duties as outside directors of DIC. Full-time Audit & Supervisory Board member Hiroyuki Ninomiya oversaw corporate accounts at the Company
for many years and previously served as general manager of the Accounting Department and Head of the Finance and Accounting Unit. Outside Audit & Supervisory Board
PHPEHU0LFKLNR&KLEDLVDFHUWL¿HGSXEOLFDFFRXQWDQWDQGKDVH[WHQVLYHH[SHULHQFHLQFRUSRUDWHDXGLWLQJ2XWVLGH$XGLW 6XSHUYLVRU\%RDUGPHPEHU.HLWD1DJXUDSURYLGHVWD[DFFRXQWLQJVHUYLFHVSXUVXDQWWR$UWLFOHRIWKH&HUWL¿HG3XEOLF7D[$FFRXQWDQW$FWDQGDVDQDWWRUQH\KDVEURDGH[SHULHQFHLQWKH¿HOGRIFRUSRUDWHODZ
8Internal Auditing Department

The internal auditing department is charged with internal auditing, which includes monitoring the effectiveness of internal controls at DIC and domestic DIC Group
companies. For DIC Group companies in Asia and Oceania, the PRC, and the Americas and Europe, internal auditing is the responsibility of local internal auditing teams.
9

Accounting Auditors

DIC has engaged Deloitte Touche Tohmatsu LLC as its independent auditors. DIC strives to ensure an environment that facilitates the accurate disclosure of
information and fair auditing. The members of the Audit & Supervisory Board, accounting auditors and the internal auditing department conduct audits from theirrespective independent positions, but also liaise periodically to facilitate close cooperation, thereby ensuring the effectiveness of auditing activities.

| Rationale Behind Current Corporate Governance Organization',&KDVLQVWLWXWHGDQH[HFXWLYHRI¿FHUV\VWHPDPRYHDLPHGDWVHSDUDWLQJGHFLVLRQPDNLQJDQGLPSOHPHQWDWLRQDQGWKHUHE\DFFHOHUDWLQJEXVLQHVVH[HFXWLRQDQG
clarifying responsibilities. As well as appointing three highly independent outside individuals to its Board of Directors, the Company has taken steps to reinforce
its monitoring of business execution. DIC also has a Nomination Committee and a Remuneration Committee, which include the three outside directors, to ensure
REMHFWLYLW\LQWKHQRPLQDWLRQRIDQGLQGHWHUPLQLQJUHPXQHUDWLRQIRUGLUHFWRUVDQGH[HFXWLYHRI¿FHUV7KHIRXUPHPEHU$XGLW 6XSHUYLVRU\%RDUGZKLFKLQFOXGHVRQHDWWRUQH\DQGRQHFHUWL¿HGSXEOLFDFFRXQWDQWDVRXWVLGHPHPEHUVOLDLVHVZLWKWKHDFFRXQWLQJDXGLWRUVDQGWKHLQWHUQDODXGLWLQJGHSDUWPHQW7KLVVWUXFWXUH
ensures the effective functioning of DIC’s corporate governance system.

| System of Internal Controls
1

Status of the System of Internal Controls

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report on its business activities.
2

Basic Policy Toward Eliminating Demands by Antisocial Elements',&¶VEDVLFSROLF\DVRXWOLQHGLQWKH',&*URXS&RGHRI%XVLQHVV&RQGXFWLVWRVWDQG¿UPO\DJDLQVWDQWLVRFLDOHOHPHQWVDQGLQQRZD\WRDFTXLHVFHWRGHPDQGV
presented by such elements. The General Affairs and HR Department is responsible for coordinating efforts to respond to extortion or other demand presented byantisocial elements, while individuals have been put in charge of efforts at each site and within each Group company. These individuals work in close collaboration
with lawyers and the police to ensure the Company’s responses are resolute. DIC has also prepared and distributed a manual on appropriate responses to suchdemands, with the aim of raising awareness among employees.

| Outside Directors and Outside Audit & Supervisory Board Members
1

Number and Role of Outside Directors and Outside Audit & Supervisory Board Members

DIC currently has three outside directors and two outside Audit & Supervisory Board members. In addition to attending meetings of the Board of
Directors, the outside directors—who have extensive experience in corporate management—serve as members of the Nomination Committee
and the Remuneration Committee, enabling them to provide supervision with an independent point of view, thereby helping to reinforce DIC’s
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management of the DIC Group from an expert, multifaceted and independent perspective, thereby helping to reinforce the auditing function.

35̲ DIC Report 2021

2Standards Used to Evaluate the Independence of Outside Directors and Outside Audit & Supervisory Board Members

DIC has established standards for evaluating the independence of individuals appointed to the position of outside director or outside Audit& Supervisory Board member, which are shown below. DIC’s outside directors and outside Audit & Supervisory Board members are
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for the independence of directors/audit & supervisory board members set by the Tokyo Stock Exchange.
3

Framework for Supporting the Efforts of Outside Directors and Outside Audit & Supervisory Board Members

Prior to meetings of the Board of Directors, relevant materials are distributed to all directors, full-time Audit & Supervisory Board members, outside
directors and outside Audit & Supervisory Board members. In addition, directors bringing matters before the Board provide explanations in advance tooutside directors, while full-time Audit & Supervisory Board members provide explanations as necessary to outside Audit & Supervisory Board members.

| Other Initiatives to Enhance the Corporate Governance Organization
1

Composition of the Board of Directors

To enable the Board of Directors to resolve major operations-related issues, as well as to facilitate the effective oversight of management,
the Board of Directors comprises outside directors, who maintain independence, and other individuals having a thorough knowledge of thebusinesses of the DIC Group, with consideration given to ensuring a balance among necessary knowledge, experience and capabilities. In
light of the DIC Group’s global operations, DIC also strives to ensure diversity in the Board’s composition.
One member of the Board of Directors is female, as is one member of the Audit & Supervisory Board.
Composition of the Board of Directors and the Audit & Supervisory Board
In-house

Outside

Total

Percentage ofoutside members

Directors

6

3

9

33.3%

Audit & Supervisory
Board members

2

2

4

50.0%

Total

8

5

13

38.5%

2

Composition of the Board of Directors
In-house
Outside

38.5%
61.5%

Remuneration for Executives

Remuneration for directors is determined by the Remuneration Committee, which takes into account prevailing market rates, and consists of basic remuneration;bonuses, which are linked to consolidated operating results and the degree of achievement of individual targets; and stock compensation, which is based on
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with consideration given to ensuring a balance with remuneration for directors and to prevailing market rates.
3

Evaluation of the Board of Directors’ Effectiveness

DIC analyzes and evaluates the effectiveness of the Board of Directors annually via a self-evaluation conducted by the directors and Audit & Supervisory Board
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other issues, responses to which were analyzed and evaluated by the Board of Directors.
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year 2019, it was judged that discussion regarding the implementation of priority measures set forth in the Company’s DIC111 medium-term management plan and
WKHULVNPDQDJHPHQWV\VWHPKDGEHHQHQKDQFHG$FFRUGLQJO\WKHHIIHFWLYHQHVVRIWKH%RDUGRI'LUHFWRUVZDVFRQ¿UPHG
,Q¿VFDO\HDU',&ZLOOVHHNWRIXUWKHUEROVWHUWKH%RDUG¶VHIIHFWLYHQHVVE\UHYLHZLQJWKHLPSOHPHQWDWLRQVWDWXVRISULRULW\PHDVXUHVVHWIRUWKLQ',&DQG
by taking steps to enhance discussion regarding, among others, the content of the next medium-term management plan and the strengthening of internal controls
and the risk management system, as well as of the monitoring thereof by the Board of Directors, as part of its ongoing effort to promote improvements.

| DIC Leverages its Position as a Global Manufacturer of Fine Chemicals to Support the UNGC
Seeking to fulfill its responsibilities as a member of the international community in a more proactive manner, in
December 2010 the DIC Group became a signatory to the United Nations Global Compact (UNGC) and pledged its
support for the Ten Principles of the UNGC.
Inaugurated in 2000, the UNGC is a voluntary initiative for companies that seek to achieve global sustainable
development. Companies and organizations worldwide have pledged their support for the UNGC in the belief that
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responsibilities in, 10 globally accepted principles in the areas of human rights, labor, the environment and theprevention of corruption.

DIC Report 2021 ̲36

A Message from an Outside Director

I sincerely believe that DIC, with its emphasis
on integrity, sincerity and goodness, has an
excellent corporate culture.

Kazuo Tsukahara
Outside Director
April 2008 Director and Managing Executive Officer, IHI Corporation
April 2012 Representative Director and Executive Vice President, IHI Corporation
June 2014 Advisor, IHI Corporation

A Rich Corporate Climate
When I was appointed as an outside director in 2017, I was immediately attracted to DIC’s Color & Comfort by Chemistry management vision. To my
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civilization, from material to spiritual wealth. To achieve this vision, we are probing ever more deeply to formulate management strategies that moreclearly align our technologies and businesses—for example, our polymerization technologies and pigments business—to further grow our operations. I¿QGWKLVDSSURDFKWREHH[WUHPHO\HQFRXUDJLQJ7KHGULYLQJIRUFHEHKLQGRXUHIIRUWVWRSXWWKLVVWUDWHJ\LQWRSUDFWLFHLVDULFKFRUSRUDWHFOLPDWHZKLFKDVVKRZQE\RXU(6*PDQDJHPHQWLQLWLDWLYHVUHÀHFWVWKHÀH[LELOLW\ZLWKZKLFKZHVHHNWRDGGUHVVVRFLDOLPSHUDWLYHVDQGWKHVHULRXVQHVVZLWKZKLFKwe conduct operations that arose from a corporate culture that emphasizes delivering safety and quality.

A Highly Functional Corporate Governance Organization',&¶V%RDUGRI'LUHFWRUVHQJDJHVLQOLYHO\GLVFXVVLRQVDQG,JLYHLWKLJKPDUNVIRUHIIHFWLYHQHVV,DPFRQVWDQWO\LPSUHVVHGE\GLUHFWRUV¶ZLOOLQJQHVV
to accept harsh criticisms from outside directors and apply them to management. The Company was early to establish a Nomination Committee anda Remuneration Committee, both of which are chaired by an outside director. Outside directors also comprise the majority of the members on thesecommittees, evidence that our corporate governance organization is functioning appropriately.

The Next Step Forward',&UHFRJQL]HVWKHLPSRUWDQFHRIDFNQRZOHGJLQJFKDQJHVLQRXURSHUDWLQJHQYLURQPHQW²QRWDEO\WKHGHFOLQHLQGHPDQGUHODWHGWRSXEOLVKLQJDQG
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Transformation and New Pillar Creation—we are well positioned to continue being a company that is able to contribute to society. On this point, there are
two things to which we need to pay particular attention.
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are garnering tremendous attention. We have our ears in the automobile industry, but we should also heed what is going on in robotics and other
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PHGLFDOFDUH²IRUURERWVWKDWZRUNDORQJVLGHKXPDQV

Becoming a Company that Offers Something a Little Different',&LVDFRPSDQ\WKDWERDVWVDSURXGKLVWRU\VWUHWFKLQJEDFNPRUHWKDQDFHQWXU\DVZHOODVRXWVWDQGLQJWHFKQRORJLFDODQGVDOHVFDSDELOLWLHV
Nonetheless, all companies must change with the times. We are actively promoting ambitious M&A initiatives that are breathing new air into the&RPSDQ\,DPH[FLWHGWRVHHZKDWNLQGRIRUJDQL]DWLRQZHHYROYHLQWRDVDUHVXOWRIWKHVHPRYHVDVZHJUDGXDOO\VKHGRXULGHQWLW\DVSULPDULO\DSULQWLQJLQNVPDQXIDFWXUHU,ORRNIRUZDUGWRXVEHLQJVHHQDVDFKHPLFDOVFRPSDQ\WKDWSURGXFHVGLVWLQFWLYHSURGXFWVWKDWRIIHUVRPHWKLQJDOLWWOH
different from our competitors. This is the aspiration captured by Color & Comfort by Chemistry. I pledge to continue leveraging my own experienceand expertise to support the realization of this vision.

37̲ DIC Report 2021

Promoting Digital Transformation| Introduction,Q¿VFDO\HDU',&EHJDQDGYDQFLQJGLJLWDOL]DWLRQLQWHFKQLFDODQGSURGXFWLRQGHSDUWPHQWV,Q¿VFDO\HDUWKH&RPSDQ\HVWDEOLVKHGWKH';3URPRWLRQ'HSDUWPHQW
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it will turn its attention to transforming the DIC Group’s business format and business models.

| Initiatives in Technical and R&D Departments
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materials development. In January 2021, DIC established the Data Science Center, which houses data scientists and AI engineers, to facilitate the introduction of AI and MI into
WKHGHYHORSPHQWRISURGXFWVDQGWHFKQRORJLHVDQGHPEDUNHGRQIXOOVFDOHLQLWLDWLYHVWREROVWHUEXVLQHVVSURFHVVHI¿FLHQF\&RPSDQ\ZLGHWKDWOHYHUDJH$,
*RLQJIRUZDUG',&ZLOOVWHSXSHIIRUWVWRIRVWHUKXPDQUHVRXUFHVLQKRXVH7KH&RPSDQ\ZLOODOVRZRUNZLWKWKLUGSDUW\RUJDQL]DWLRQVDQGPDNH$,LQIUDVWUXFWXUH±UHODWHG
investments to expand and enhance the Data Science Center with the aim of halving the development stage for new products and doubling the number of development
themes underpinning its two core strategies: Value Transformation, that is, strengthening corporate structure through qualitative reforms of businesses, and New Pillar&UHDWLRQRUWKHFUHDWLRQRIQHZEXVLQHVVHVLQUHVSRQVHWR(6+UHODWHGLVVXHVDQGVRFLDOFKDQJHVMI applies statistical analysis and other informatics techniques to search large amounts of data for new materials.

| Production Department Focus: Creating Smart Production Facilities
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production with minimal staff. The objective of these measures is to reduce labor requirements, as well as to improve productivity and quality. At the same time, the Company
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| Sales and Digital Marketing Initiatives,QVDOHVDQGPDUNHWLQJ',&LVFDSLWDOL]LQJRQPDUNHWLQJDXWRPDWLRQ 0$ WRKROGRQOLQHH[KLELWLRQVLQDQHIIRUWWRSURPRWHHI¿FLHQWVDOHVDQGPDUNHWLQJLQLWLDWLYHVLQWKLVHUD
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conclusion rate through information sharing, collaborating to conduct various initiatives, as well as to analyze and deploy accumulated sales data. To these ends, the Group
LVH[SORULQJWKHLQWURGXFWLRQRIDVDOHVIRUFHDXWRPDWLRQ 6)$ V\VWHP0$XVHVWRROVDQGVRIWZDUHWRVXSSRUWPDUNHWLQJHIIRUWVLQFOXGLQJWKHVHFXULQJRIQHZFXVWRPHUVDQGWKHFXOWLYDWLRQRISURVSHFWLYHFXVWRPHUV| Initiatives in the Area of Human Resources',&LVDOVRSODFLQJDSULRULW\RQIRVWHULQJWKHKXPDQUHVRXUFHVQHFHVVDU\WRDGYDQFHYDULRXVHIIRUWV,Q¿VFDO\HDUWKH&RPSDQ\EHJDQRIIHULQJWUDLQLQJIRUIXWXUHGDWDVFLHQWLVWVDQGLQWKHHIIHFWLYHXVHRIGDWD7KHIRUPHUDLPVWRH[SDQGWKHQXPEHURIGDWDVFLHQWLVWVRQVWDIIE\WKURXJKLQWHUQDODQGH[WHUQDOWUDLQLQJ)RUWKHODWWHU
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DIC Report 2021 ̲38

Directors, Audit & Supervisory Board Members and Executive Officers（ 2019 年 0 月現在）
(As of May 2021)| Directors

1

Masayuki Saito

Chairman of the Board of Directors

2

Kaoru Ino

Representative Director

3

Toshifumi Tamaki

Representative Director

4

Yoshihisa Kawamura

Director

5

Takeshi Asai

Director

6

Shuji Furuta

Director

7

Kazuo Tsukahara

Director*

6

9

Kuniko Shoji

Director*

8

6

5

7

9

Yoshiaki Tamura

Director** Outside

3

1

2

4

| Audit & Supervisory Board Members
1

Hiroyuki Ninomiya

Full-Time Audit & Supervisory Board Member
2

Akihiro Ikushima

Full-Time Audit & Supervisory Board Member
3

Michiko Chiba

Audit & Supervisory Board Member*
4

Keita Nagura

Audit & Supervisory Board Member** Outside

3

Kuniko Shoji

4

Michiko Chiba

June 2004 Executive Officer, Terumo Corporation
April 2008 Director and Managing Executive Officer, IHI Corporation
April 2012 Representative Director and Executive Vice President, IHI Corporation June 2010 Director and Senior Executive Officer, Terumo Corporation
June 2017 Advisor, Terumo Corporation
June 2014 Advisor, IHI Corporation

October 1989 Joined Showa Ota & Co. (currently Ernst & Young ShinNihon LLC)
July
2010 Senior Partner, Ernst & Young ShinNihon LLC
September 2016 Founded Chiba Certified Public Accountant Office

Yoshiaki Tamura

Keita Nagura

January 2007 Executive Officer, Asahi Glass Co., Ltd.
March 2013 Representative Director and Executive Vice President, Asahi Glass Co., Ltd.
March 2017 Executive Fellow, Asahi Glass Co., Ltd.

April

39̲ DIC Report 2021

2

| 2XWVLGH$XGLW 6XSHUYLVRU\%RDUG0HPEHU3URÀOHV| 2XWVLGH'LUHFWRU3URÀOHV
Kazuo Tsukahara

1

1998 Registered as an attorney (Osaka Bar Association); Joined Yodoyabashi Godo Law Office(currently Yodoyabashi & Yamagami Legal Professional Corporation)
February 2002 Changed registration as an attorney to the Dai-Ichi Tokyo Bar Association

| ([HFXWLYH2IÀFHUVKaoru Ino

Toshifumi Tamaki

Naoyoshi Furuta

Masaya Nakafuji

Kazuo Hatakenaka

President and CEO

Executive Vice PresidentManaging Executive Officer

Managing Executive Officer

Managing Executive Officer

Assistant to President and CEO

General Manager, Production
Management Unit

Head of General Affairs and Legal Unit
In Charge of Diversity,
Osaka Branch and Nagoya Branch

Chairman, DIC (China) Co., Ltd.
Chairman, DIC (Shanghai) Co., Ltd.

Kiyotaka Kawashima

Masamichi Sota

Kiyofumi Takano

Yoshinari Akiyama

Taihei MukoseManaging Executive Officer

Managing Executive Officer

Managing Executive Officer

Managing Executive Officer

Executive Officer

General Manager, Technical Management
Unit

President, Packaging & Graphic
Business Group
General Manager, Printing Material
Products Div.

General Manager, New Business
Development Headquarters

President, Color & Display Business Group
General Manager, Color Material
Products Div.

Head of Purchasing and Logistics Unit
Head of ESG Unit

Paul Koek

Myron Petruch

Takeshi Asai

Koji Asada

Masahiro Kikuchi

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Managing Director,
DIC Asia Pacific Pte Ltd

President and CEO,Sun Chemical Corporation

Head of Corporate Strategy Unit
In Charge of Kawamura Memorial DIC
Museum of Art
Vice Chairman of the Board,
Sun Chemical Corporation

Head of SCM Unit

Deputy Managing Director(AP Region Non Graphic Business andSouth Asia), DIC Asia Pacific Pte Ltd

Yuji Morinaga

Shuji Furuta

Toshiro Ariga

Takashi Ikeda

Yuji Kikuchi

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

General Manager, Packaging Material
Products Div.

Head of Finance and Accounting Unit
CFO

General Manager, R&D Management Unit
General Manager, Central ResearchLaboratories

President, Functional Products
Business Group
General Manager, Composite Material
Products Div.

General Manager, Performance
Material Products Div.

Tomoyuki Tanaka
Executive Officer
General Manager, Corporate Planning
Dept.

DIC Report 2021 ̲40

Materiality Analysis
Identifying Priority Materiality Themes*XLGHGE\LWV',&PHGLXPWHUPPDQDJHPHQWSODQODXQFKHGLQ¿VFDO\HDUWKH',&*URXSRQFHDJDLQDEVWUDFWHGDQGDQDO\]HGPDWHULDOLVVXHVWKDWLVLVVXHVZLWKWKHSRWHQWLDOWRQHJDWLYHO\DIIHFWLWVSHUIRUPDQFHIURPZKLFKLWLGHQWL¿HGIRXUWKHPHVRISULPDU\LPSRUWDQFHWRWKH*URXSWKDWLWGHVLJQDWHGSULRULW\PDWHULDOLW\WKHPHVThe DIC Group’s Materiality Matrix
Strengthening of partnerships
Reduction of environmental impact(emissions into air and water)●
Digital transformation●
Food safety●
Response to a circular economy●
Communication with customers and markets●
Response to pandemics●●

Importance to stakeholders

Very
high

Management of water resources
Contribution to local communities● Reputation-related risks● Response to tax-related risks● Management of work outsourced
to subcontractors

Promotion of diversity
Realization of colorful andcomfortable lifestyles● Business continuity(Business continuity planning(BCP))●●●●

Efforts to enhance employee
satisfaction/fulfillment●
Promotion of open innovation● Intellectual property strategies
●

High
High

Transformation to a sustainablebusiness structure● Product stewardship● Response to climate change● Efforts to strengthen productdevelopment capabilities andcreate new businesses●

Transformation to a sustainablebusiness structure● Product stewardship● Response to climate change● Efforts to strengthen productdevelopment capabilities andcreate new businesses●

Response to changes in environmental
laws and regulations
Promotion of sustainable procurement● Ability to maximize capital efficiency● Governance at subsidiaries● Information security●●

Human resource development
and securing employment
Addition of depth to and expansionof basic technologies● Response to currency fluctuations●●

Issues of fundamental importance to DIC Group businesses
・Security and disaster prevention, occupational safety and health・Respect for human rights
・Compliance
・Product/manufacturer’s liability
・Quality management
・Political and geopolitical change
Information on key concrete initiatives related to issues of particularsignificance is disclosed in this report.

Very highImportance to DIC Group businesses

Process for Abstracting Material Issues
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Priority Materiality Themes
1

Transformation to a sustainable business structure

Reason for
identification

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41̲ DIC Report 2021

2 Product stewardship

Reason for
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Targets/KPIs

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3

Response to climate change

Reason for
identification

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Change fromprevious ﬁscal year

34

Change fromﬁscal year 2013

Global

-4.3％

23.6％

Japan

-12.0％-20.5%

Overseas＋ 0.4％-25.2％

Efforts to strengthen product development capabilities and create new businesses

Reason for
identification

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Targets/KPIs

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A Message from the Head of the ESG Unit
We are reinforcing sustainability initiatives
that help increase social value with the aimof ensuring sustainable, long-term growth.

Taihei Mukose([HFXWLYH2IÀFHU+HDGRI(6*8QLW',&&RUSRUDWLRQ

A variety of social imperatives have become increasingly evident in recent years owing to, among others, environmental issues, widening economic
inequalities arising from mounting resource constraints and human rights issues across supply chains. The DIC Group works to contribute through its
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are accelerating related initiatives.

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of consequence from a governance perspective.
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sustainability themes into everyday operations. This working group continues to deploy initiatives in line with a variety of themes (see information
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In particular, in the area of raw materials procurement we have inaugurated a system that places importance on creating a framework for the
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Going forward, we will continue working to enhance both social value and economic value of our businesses, as well as to advance the prudent yetbold management of our business portfolio, strengthening the sustainability of our businesses and our ability to contribute to society, and helping toensure continuous growth.

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DZDUHQHVVRIWKHFRVWVDVVRFLDWHGZLWK&2 emissions and to increase incentives for reductions realized.

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initiative aimed at responding effectively to the shift to a circular economy, as well as to market changes propelled by evolving demand patterns, we
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phase of sustainability for the world and for ourselves.

43̲ DIC Report 2021

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The Group has thus designated products that both demonstrate its unique competitive strengths and have the potential to improve
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challenges may still be in their infancy, the Group will take bold steps to reinforce its unmatched capabilities, thereby ensuring cancontinue providing value.

Businesses and Products Designated Sustainable by the DIC Group
Social Imperatives

Unique Competitive Strengths

Urgent/important② A, B
Technologies

Climate change
Circular economy
Improvement of the environment
Improvement of quality of life①
A, B

Production
Sales and marketing
Global network
Solid relationships with customers

Digitization
Life sciences

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whether they are sustainable or not, enabling it to make appropriate decisions regarding the use of resources for portfolio transformation.
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in the years ahead.
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products will require serious consideration.

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of related data, the DIC Group is committed to avoiding the use of harmful substances, as well as to conducting lifestyle assessments. The Groupis also cognizant of the fact that reducing its impact on the environment will require comprehensive measures to improve the performance of its
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the proper management of water resources.
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environmental impact.

DIC Report 2021 ̲44

Support for the TCFD
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with the goal of playing an active role in lowering COHPLVVLRQVLQPDUNHWVDQGDFURVVVRFLHW\| Disclosures in Line with TCFD Recommendations
With the aim of helping institutional investors grasp climate-related risks and opportunities and make investment decisions, the TCFD has structured its recommendations
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for the reduction of CO emissions, are deliberated and determined by the Sustainability Committee, which meets a minimum of four times annually and
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Initiatives for Fiscal Years 2020 and 2021 (Following Scenario Analysis)• Introduce internal carbon pricing
Quantify climate change risk and provide economic incentives for reducing COHPLVVLRQVWRDFFHOHUDWHWKHSURPRWLRQRILQYHVWPHQWVDQGLQQRYDWLRQVWRIXUWKHUDGYDQFHHPLVVLRQVUHGXFWLRQV
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Risk Management
Processes used to identify and assess climate-related risks
3

The Sustainability Working Group is charged with identifying and assessing priority risks and opportunities from the perspective of potential to negatively
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becoming impossible or being delayed due to the suspension of operations at production facilities and the instability of raw materials supplies, there is a
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KDQGOHGE\WKHUHOHYDQWGLYLVLRQVGHSDUWPHQWVProcesses used to manage climate-related risks
The progress of initiatives is deliberated periodically by the Sustainability Working Group, which looks at success in reducing CO emissions compared
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45̲ DIC Report 2021

Overview of Sustainability
In line with its basic sustainability policy, the DIC Group promotes a variety of sustainability initiatives worldwide and works to maintain an accurate
JUDVSRIVRFLDOLPSHUDWLYHVSHUWDLQLQJWR(6*UHODWHGLVVXHVBasic Sustainability Policy（3DUWLDOO\UHYLVHGLQ0DUFK）
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risks, ensuring fair business practices and respect for diversity and human rights, maintaining harmony with the environment and advancing its protection,
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YDOXHWKDWLWVVWDNHKROGHUV²LQFOXGLQJLWVFXVWRPHUVVXSSOLHUVORFDOFRPPXQLWLHVVKDUHKROGHUVDQGLQYHVWRUVDQGHPSOR\HHV²H[SHFWVKRZLQJLQJHQXLW\DQGDVHQVHRIUHVSRQVLELOLW\7KH*URXSLWVHOIZLOOVWULYHWRUHPDLQDQRUJDQL]DWLRQWKDWFRQWULEXWHVWRVXVWDLQDELOLW\IRUVRFLHW\DVZHOODVWRWKHFRQVHUYDWLRQDQGLPSURYHPHQWRIWKHJOREDOHQYLURQPHQWE\FDSLWDOL]LQJRQLWVEXVLQHVVHVWRDFKLHYHXQIDOWHULQJJURZWKWKHUHE\HQKDQFLQJLWVRZQVXVWDLQDELOLW\※ 1 DIC グループは、「 グローバルに信頼され誇りある企業市民 」
であり続けることを目指して、2010 年 12 月に国連グローバル・コンパクト（UNGC）に参加し、「 社会的責任 」
に関する

Notes:
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国際規格・ISO26000のガイドラインを勘案しながら、企業活動を進めています。
7KH*URXSDOVRWDNHVWKHJXLGHOLQHVSURYLGHGE\,62WKH,QWHUQDWLRQDO2UJDQL]DWLRQIRU6WDQGDUGL]DWLRQ¶VVWDQGDUGIRUVRFLDOUHVSRQVLELOLW\LQWRDFFRXQWLQFRQGXFWLQJLWVRSHUDWLRQV※ 2 国際社会では、
持続的な経済成長と社会的課題の解決が両立した ESG 経営の推進が強く求められ、「（地球温暖化対策に関する）
パリ協定 」（2015 年）、
「 SDGs＝持続可能な 7KH」JOREDO FRPPXQLW\
WRGD\ UHFRJQL]HV WKH SURPRWLRQ RI (6* PDQDJHPHQW ZKLFK VHHNV WR EDODQFH VXVWDLQDEOH HFRQRPLF JURZWK DQG WKH UHVROXWLRQ RI VRFLDO
開発目標
（2015
年）
が採択されています。
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| Sustainability Framework and Themes
Themes7RIRVWHUFRQFUHWHPHDVXUHVLQ¿VFDO\HDUWKH',&*URXSLGHQWL¿HGNH\WKHPHVDVDIUDPHZRUNIRULPSOHPHQWLQJLWV&65SURJUDP6XEVHTXHQWO\WKH
*URXSSDUWLDOO\UHYLVHGWKHVHWKHPHVLQUHVSRQVHWRFKDQJHVLQWKHH[WHUQDOHQYLURQPHQWDQGWKHSURJUHVVRILWVHIIRUWV7RGD\WKH*URXS¶VVXVWDLQDELOLW\IUDPHZRUNFRPSULVHVNH\WKHPHVZKLFKDUHFDWHJRUL]HGDVEDVLFWKHPHVWKHPHVWKDWGHPRQVWUDWHXQLTXHFDSDELOLWLHVDQGWKHPHVWKDWFRPELQHHOHPHQWVRIWKHSUHYLRXVWZRFODVVL¿FDWLRQV7KH*URXSLPSOHPHQWVDEURDGUDQJHRIJOREDOLQLWLDWLYHVWKDWWDNHLQWRDFFRXQWLWVUHVSRQVLELOLW\WRHQVXUHSURSHUSURGXFWVWHZDUGVKLSDVZHOODVLWVSRVLWLRQDVDOHDGLQJPDQXIDFWXUHURI¿QHFKHPLFDOV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

Basic
Basic
(B))
themes(BthemesComplianceBusiness continuity management (BCM) and crisis management
Information security()

Deployment
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product divisions, sites, and overseas and domestic DIC Group companies are charged with pursuing effective sustainability programs by formulating their
RZQDFWLYLW\SODQVEDVHGRQWKH*URXS¶VSODQDVZHOODVZLWKHQVXULQJWKDWWKH*URXS¶VSROLFLHVSHUPHDWHWKHLURUJDQL]DWLRQVDQGODERUIRUFHV| System for Promoting Sustainability Initiatives
7KH',&*URXS¶VV\VWHPIRUSURPRWLQJVXVWDLQDELOLW\LQLWLDWLYHVFHQWHUVRQWKH6XVWDLQDELOLW\&RPPLWWHHZKLFKDQVZHUVGLUHFWO\WRWKHSUHVLGHQWDQG&(2In addition to reporting periodically on the progress of initiatives implemented in line with the Group’s sustainability themes, the committee is tasked withIRUPXODWLQJVXVWDLQDELOLW\WKHPHVDQGDFWLYLW\SODQVUHLQIRUFLQJVXVWDLQDELOLW\LQLWLDWLYHVDQGGHOLEHUDWLQJRQFULWLFDOUHODWHGPDWWHUV(IIHFWLYHIURP-DQXDU\WKHFRPPLWWHHLVFKDLUHGE\WKHSUHVLGHQW| The 2030 Agenda for Sustainable Development$WWKH816XVWDLQDEOH'HYHORSPHQW6XPPLWLQ6HSWHPEHUDSURSRVDOWLWOHG
³7UDQVIRUPLQJRXUZRUOGWKH$JHQGDIRU6XVWDLQDEOH'HYHORSPHQW´ODWHUVXPPDUL]HGDVWKH6XVWDLQDEOH'HYHORSPHQW*RDOV 6'*V ZDVDGRSWHGZLWKWKH
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0LOOHQQLXP'HYHORSPHQW*RDOV 0'*V HQFRPSDVVHVJRDOVDQGWDUJHWV$OO
81PHPEHUVWDWHVDUHH[SHFWHGWRPRELOL]HHIIRUWVWRDWWDLQWKHJRDOVHVVHQWLDOWRVXVWDLQDEOHGHYHORSPHQWIRUWKHSODQHWE\7KH',&*URXSSOHGJHVWRFRQWULEXWHWKURXJKLWVEXVLQHVVDFWLYLWLHVWRWKHVXFFHVVRIWKH6'*VFor more information on the SDGs, please visit:https://www.un.org/sustainabledevelopment/development-agenda/

DIC Report 2021 ̲46

Compliance

SDGs Goal 16
QR codeToward Fair and Transparent Corporate Activities
https://www.dic-global.com/en/csr/philosophy/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 Group held presentations for all
existing Group employees at the time of release, while new employees receive training at point of hire. The goal of such training is to ensure employees
worldwide share values cherished by the Group and approach their responsibilities with a sense of responsibility and a commitment to doing the right thing.
DIC Group Code of Business Conduct WEB https://www.dic-global.com/pdf/csr/philosophy/compliance/code_of_business_conduct_en.pdf

10 Principles Essential to Professional Conduct❶ Your Rights as an Employee: Respect, Dignity, Privacy❻ Your Relationship with Customers, Suppliers, and External Third Parties❷ Environment, Safety and Health❼ Money Laundering and Anti-Terrorism❸ <RXU5HVSRQVLELOLW\WR$YRLG3RWHQWLDO&RQÀLFWVRI,QWHUHVWDQGWR3URWHFW*URXS3URSHUW\❽ )RUFHG/DERU&KLOG/DERU&RQÀLFW0LQHUDOV❹ Anti-Corruption and Anti-Bribery Policy❾ Insider Trading❺ <RXU5HODWLRQVKLSZLWK*RYHUQPHQWVDQG*RYHUQPHQW2I¿FLDOV❿ Proper Accounting and Internal Controls Relating to Financial Reporting| Initiatives to Promote Compliance
The DIC Group promotes compliance through the following initiatives:❶ Training focused on legal issues to improve compliance awareness is provided for employees at point of hire, when promoted and before transfer overseas. In
DGGLWLRQWRSURPRWHDZDUHQHVVRIWKH',&*URXS&RGHRI%XVLQHVV&RQGXFWDQGFRPSOLDQFHLQ¿VFDO\HDUHOHDUQLQJZDVLPSOHPHQWHGLQ-DSDQDQGDW',&
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Legal training focused on governance-related issues was also implemented in Japan (twice for DIC executives, once for the presidents of Group
companies in Japan and once for domestic employees assigned to overseas posts).
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2020, there were no serious violations of compliance laws.

BCM and Crisis Management

QR codeReducing Business Risks and Preventing the Recurrence of Incidents
https://www.dic-global.com/en/csr/philosophy/bcm.html| Framework for Promoting BCP+DYLQJSUHSDUHGFULVLVPDQDJHPHQWUXOHVDQGULVNVSHFL¿FPDQXDOVIRUXVHDFURVVWKH',&*URXSLQWKHHYHQWRIDPDMRUGLVDVWHU',&KDVIRUPXODWHG%&3V
IRULQGLYLGXDOSURGXFWGLYLVLRQV7KH*URXSDOVRUHFRJQL]HVWKHQHHGWRHQVXUHLWFDQIXO¿OOLWVVXSSO\UHVSRQVLELOLWLHVLQWKHHYHQWRIGDPDJHWRLWVIDFLOLWLHVIURPa large-scale natural disaster and thus incorporates this perspective into its BCPs. Specifically, the Group formulates BCPs for key products with a view to
IXO¿OOLQJLWVVRFLDOUHVSRQVLELOLW\DQGUHVSRQGLQJWRFXVWRPHUUHTXLUHPHQWV',&DOVRFRQGXFWV%&3IRFXVHGMRLQWSURGXFWLRQGLYLVLRQ±VLWHH[HUFLVHVDVVXPLQJWKH
LPSOHPHQWDWLRQRIWKHVH%&3VWRFRQ¿UPWKHHIIHFWLYHQHVVRIPDQXDOVLGHQWLI\LVVXHVDQGLPSOHPHQWRQJRLQJLPSURYHPHQWV| BCM in Fiscal Year 2020
:KLOH¿VFDO\HDUZDVIRUWXQDWHO\D\HDULQZKLFKWKH',&*URXSGLGQRWVXIIHUVLJQL¿FDQWGDPDJHIURPQDWXUDOGLVDVWHUVDGGLWLRQDOGHFLVLYHVWHSVZHUHUHTXLUHGWRFXUEWKHVSUHDGRI&29,'LQFOXGLQJWKHVKLSPHQWRIPDVNVDQGQRQFRQWDFWWKHUPRPHWHUVWR*URXSVLWHVZRUOGZLGH0RUHRYHUEHFDXVHWKH
H[LVWLQJSDQGHPLF%&3VZHUHSUHPLVHGRQDQRYHOLQÀXHQ]DYLUXVWKH\ZHUHQRWFRPSDWLEOHZLWKWKHPHDVXUHVUHTXLUHGIRUDQRYHOFRURQDYLUXVDVDUHVXOWRIZKLFK',&UHFRJQL]HGWKHQHHGWRFUHDWHQHZSDQGHPLFPDQXDOVWKDWDUHQRWOLPLWHGWRUHVSRQVHVWDLORUHGWRRQHVSHFL¿FLQIHFWLRXVGLVHDVH$FFRUGLQJO\the Company aims to revise its pandemic BCPs with a focus on common, universal measures appropriate for all types of infectious disease.
,Q¿VFDO\HDU',&SODQVWRIXOO\GHSOR\WKH',&%&3RUWDODGHGLFDWHGSRUWDOV\VWHPWRDOORZWKHVKDULQJRILQIRUPDWLRQDPRQJWKHKHDGTXDUWHUV
WDVNIRUFHSURGXFWGLYLVLRQVDQGVLWHVLQWKHHYHQWRIDQDFFLGHQWRUDGLVDVWHU,Q¿VFDO\HDUKHDGTXDUWHUVWDVNIRUFHWUDLQLQJLQFOXGHGDWULDORIWKLVSRUWDOV\VWHPEDVHGRQDVFHQDULRLQYROYLQJDQDFFLGHQWDWWKH7RN\R3ODQWDIWHUZKLFKWKHKHDGTXDUWHUVWDVNIRUFHVHWXSFRPPXQLFDWLRQVZLWKWKH7RN\R
Plant, allowing the latter to share information regarding the imagined accident.

47̲ DIC Report 2021

| Conducting Emergency Response Exercises and Drills,QDGGLWLRQWRDQQXDOKHDGTXDUWHUVWDVNIRUFH±OHGWUDLQLQJDQG%&3IRFXVHGMRLQWSURGXFWLRQGLYLVLRQ±VLWHH[HUFLVHVWKH',&*URXSKDVGHYHORSHGDQGZRUNVWRPDLQWDLQDV\VWHPdesigned to ensure its ability to minimize damage in the event of a disaster, as well as to facilitate the smooth restoration of operations. This system includes a wide range of exercises
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KHDGTXDUWHUVWDVNIRUFHDOVRFRQGXFWHGDGULOOXVLQJDVFHQDULRLQYROYLQJDGLVDVWHURFFXUULQJDWDWLPHZKHQPDQ\HPSOR\HHVZHUHPDNLQJXVHRIWHOHZRUNDUUDQJHPHQWVZLWKDOO
FRUSRUDWHKHDGTXDUWHUV±EDVHGH[HFXWLYHRI¿FHUVSDUWLFLSDWLQJRQOLQHWRHQVXUHWKHKHDGTXDUWHUVWDVNIRUFH¶VDELOLW\WRIXQFWLRQHYHQLQDVLWXDWLRQZKHUHWHOHZRUNLVWKHQRUP

| Responding to Pandemics',&SUHSDUHVSURGXFWVSHFL¿FSDQGHPLF%&3VLQQRQHPHUJHQF\WLPHVWRJXDUDQWHHLWLVIXOO\SUHSDUHGWRUHVSRQGWRSDQGHPLFVZKHQWKH\RFFXU7RHQVXUHSUHSDUHGQHVVfor the concurrent infection of multiple employees, the Company has also developed response plans for individual production lines at each of its production sites. Having
recognized that because different infectious diseases behave in different ways, responses tailored to one particular disease may not be effective for all pandemics.
Accordingly, the Company plans to revise its pandemic BCPs with a focus on common, universal measures appropriate for all types of infectious disease.
,QUHVSRQVHWRWKHHPHUJHQFHRI&29,'LQ¿VFDO\HDU',&KDVIRFXVHGRQFDUU\LQJRXWDFWLRQVGHVLJQHGWRKHOSWKZDUWWKHIXUWKHUVSUHDGRIWKHYLUXVDQGWR
prevent employees from becoming infected. These include prohibiting business trips worldwide; instituting telework arrangements, including for temporary staff; staggering
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unwell; and encouraging the avoidance of meetings and events.

Information Security

QR codeInitiatives to Ensure Information Security
https://www.dic-global.com/en/csr/philosophy/security.html| Globally Maintaining and Enhancing Information Security
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Regulations and Guidelines
In line with its Basic Policy on Information Security, the DIC Group updates its confidential information management regulations, which stipulate the scope ofmanagement, related standards, rules and responsibilities, as well as its information management guidelines, which outline implementation procedures, on a regular
EDVLVDQGDVUHTXLUHGWRHQVXUHLWVDELOLW\WRDGGUHVVQHZVHFXULW\ULVNVLQDWLPHO\PDQQHUThe Group also creates new and revises existing rules as appropriate in response to the increasing prevalence of digital technologies and the shift to cloudbased computing, and has established separate rules for handling personal information and customer information in its information management guidelines,
which it is working to disseminate among employees. In fiscal year 2020, the DIC Group reported no breaches of customer privacy or losses of customer data.
Management Framework
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timely update of rules and guidelines to accommodate new technologies and risks, and to ensure changes are communicated effectively across the DIC
Group. The committee formulates annual targets and initiatives for strengthening information security with the approval of the Sustainability Committee
and manages the progress of related efforts.
7RHQVXUHLWLVSUHSDUHGLQWKHXQOLNHO\HYHQWRIDQLQIRUPDWLRQVHFXULW\±UHODWHGLQFLGHQWWKH*URXSKDVFUHDWHGDWDVNIRUFHRSHUDWLRQDOPDQXDOWR
ensure effective initial responses to incidents when they occur.
Infrastructure,QSUHSDUDWLRQIRUWKHIXOOVFDOHWUDQVLWLRQWRDFORXGEDVHGLQIRUPDWLRQV\VWHPDQGWKHH[SDQGHGXVHRIWHOHZRUNDUUDQJHPHQWVLQ¿VFDO\HDUWKH',&
Group took steps to reinforce its internet security infrastructure and updated endpoint security systems. The Group also proceeded with the constructionof a maintenance system to promptly detect information security risks and address incidents when they occur in collaboration with an external partner.
On another front, the DIC Group continued to conduct inspections of its information security management system, regulations, infrastructure,
maintenance measures, and employee education and training, from a third-party organization. This helps to clarify issues and challenges and ensure they
DUHUHÀHFWHGLQUHPHGLDOPHDVXUHVEmployee Education and Training
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WDNHSDUW,Q¿VFDO\HDUWKLVSURJUDPZDVEURDGHQHGWRLQFOXGHWKHSURWHFWLRQRISHUVRQDOLQIRUPDWLRQ7KH*URXSKDVDOVRSURYLGHGWUDLQLQJGHDOLQJZLWKWDUJHWHGHPDLODWWDFNVVLQFH¿VFDO\HDUZRUNLQJFRQWLQXRXVO\WRHQVXUHPRUHSUDFWLFDOFRQWHQWWRLQFUHDVHHPSOR\HHV¶DZDUHQHVVRIVHFXULW\7KH*URXSKDVRIIHUHGHPSOR\HHWUDLQLQJLQERWKLQIRUPDWLRQVHFXULW\DQGLQGHDOLQJZLWKWDUJHWHGHPDLODWWDFNVLQWKH$PHULFDVDQG(XURSHVLQFH¿VFDO\HDU
,QUHVSRQVHWRWKHHPHUJHQFHRID³QHZQRUPDO´LQ¿VFDO\HDUDQGWKHH[SDQGHGXVHRIWHOHZRUNDUUDQJHPHQWVWKH',&*URXSLVFXUUHQWO\IRUPXODWLQJ
guidelines that accommodate various work styles, which it will work to disseminate across the Group.

DIC Report 2021 ̲48

Environment, Safety and Health (ESH)

SDGs Goals 3, 6, 7, 12, 13, 14 and 15
QR codeToward the Achievement of a Sustainable Society
https://www.dic-global.com/en/csr/environment/

Management System
The DIC Group promotes a broad range of ESH initiatives through its Responsible Care program.

As a global organization that manufactures and sells chemical substances, the DIC Group promotes a broad range of ESH initiatives through its
Responsible Care program. Today, the Group manages its Responsible Care program in a uniform manner using standardized codes, guided by
its Environment, Safety and Health Policy, and works to implement initiatives that exceed regulatory requirements, in line with annual Responsible
Care activity plans, and to fully disclose the results thereof.
The framework for promoting Responsible Care encompasses the Sustainability Committee, which approves Groupwide sustainability targets
and policies, as well as formulates and evaluates medium-term sustainability policies and annual sustainability initiatives. The PDCA cycle is used
to evaluate voluntary Responsible Care initiatives implemented by Group companies, plants and R&D facilities in collaboration with the Safety andEnvironment Group. The Responsible Care Department also provides support to ensure the smooth progress of these initiatives and conducts
audits to ensure compliance and improve safety and environmental performance.
Note: Responsible Care describes voluntary management initiatives undertaken by companies that manufacture or otherwise handle chemical substances, in line with the principles ofautonomous action and self-assessment, pledging in their management policies to protecting the environment and ensuring health and safety across the entire life cycle of products, fromdevelopment to manufacturing, distribution, use and end-of-life disposal, as well as to disclosing related information and promoting improvements.

ESH Auditing
The DIC Group regularly audits Responsible Care initiatives at Group companies, plants and R&D facilities. Because of COVID-19, auditing
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&DUH'HSDUWPHQWVSHFLDOLVWVDQGUHJLRQDOKHDGTXDUWHUV¶(6+RI¿FHUVXVHVHOIDVVHVVPHQWFKHFNOLVWVWRDVFHUWDLQWKHSURJUHVVRIHIIRUWVZLWKWKH
aim of enhancing Responsible Care initiatives at individual sites. Unlike in other years, these were also implemented online at certain sites owingWR&29,'7ZRYLRODWLRQVRI5HVSRQVLEOH&DUH±UHODWHGUHJXODWLRQVZLWKSHQDOWLHVLQH[FHVVRIZHUHUHSRUWHGRYHUVHDVLQWKHSHULRG
under review, in response to which prompt remedial measures were swiftly implemented.
Outline of ESH Audits Implemented in Fiscal Year 2020
Japan

Overseas

DIC

DIC Graphics

Other domestic DIC
Group companies

9 sites

2 sites

11sites

Total

Audits Conducted at Subsidiaries’ Sites
in Fiscal Year 2020

22 sites

Greater China

Asia–Pacific region

15 sites

24 sites

Total

Sun Chemical Group

Seiko PMC Group

22 sites

12 sites

39 sites

Occupational Safety and Health/Disaster Prevention
Viewing the prioritization of operational safety as a core management tenet, the DIC Group works tirelessly to prevent accidents and disasters and to boost the level of ESH initiatives.

The DIC Group recognizes operational safety both as
fundamental to its businesses and the core componentof Responsible Care. The Company thus promotes active
occupational safety and health, security and disasterprevention measures to foster a “Safety First” philosophy
Groupwide and on the part of every employee. To foster skilled
safety personnel, the Group provides regular safety education,
including Kiken Yochi Training (KYT) (“hazard prediction
training”) and e-learning based training, in multiple languages,
with the aim of transforming the mindset of employees byencouraging them to think and act on their own to protect
themselves and each other from latent risks.

49̲ DIC Report 2021

Occupational Accidents Resulting in Workdays Lost (FY2018–2020)
DIC
Number ofaccidents resulting
in workdays lost

2018

2019

6

2

DIC Group (Japan)

DIC Group (Global)

2020 201820192020 2018

2019

2020

1

11

5

78

70

8

91

Frequency
rate

1.071 0.363 0.180 0.848 1.200 0.545 2.211 1.963 1.793

TRIR*

2.50 1.63 1.44 2.86 2.95 2.51 4.71 3.82 3.56

* TRIR is calculated as: (Number of casualties due to occupational accidents resulting in workdays lost + Number ofcasualties due to occupational accidents not resulting in workdays lost) / Million work hours).

Environmental Conservation
The DIC Group recognizes that it has a responsibility to help address environmental issues and is taking decisive steps to reduce its negative impact, thereby contributing to sustainability.

Climate Change
Initiatives Aimed at Preventing Global Warming
Recognizing climate change as an issue of the utmost importance to society and a critical factor affecting its businesses, the DIC Group is working as
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technological capabilities to develop products that will contribute to the realization of a low-carbon society.
$WWKH8QLWHG1DWLRQV&OLPDWH&KDQJH&RQIHUHQFH WKHVWDQQXDOVHVVLRQRIWKH&RQIHUHQFHRIWKH3DUWLHV &23 WRWKH8QLWHG1DWLRQVFramework Convention on Climate Change (UNFCCC)), participants adopted the Paris Agreement, a move aimed at accelerating efforts to tackle thisXUJHQWFKDOOHQJH,Q0D\WKH',&*URXSGHFODUHGLWVVXSSRUWIRUWKH7&)' SOHGJLQJWRGLVFORVHFOLPDWHUHODWHGLQIRUPDWLRQLQOLQHZLWK7&)'recommendations going forward.
7KH7&)'ZDVHVWDEOLVKHGXQGHUWKHDXVSLFHVRIWKH)LQDQFLDO6WDELOLW\%RDUG )6% DQGDQQRXQFHGLQ-XQHZLWKWKHDLPRIPLWLJDWLQJFOLPDWHFKDQJH±UHODWHGLQVWDELOLW\DQGULVNLQ¿QDQFLDO
markets, which has the potential to affect performance over the medium to long term.

Framework for Promotion',&DQG',&*URXSFRPSDQLHVLQ-DSDQKDYHHVWDEOLVKHGDQ(QHUJ\6DYLQJ3URPRWLRQ&RPPLWWHHDWHDFKVLWH&RPPLWWHHDFWLYLWLHVLQFOXGHFRQ¿UPLQJ
the progress of initiatives, engaging in discussions and conducting patrols. Overseas, DIC Group companies promote a wide range of independentHQHUJ\VDYLQJLQLWLDWLYHVWKDWDOLJQZLWKWKH*URXS¶VSROLFLHV7KH3URGXFWLRQ0DQDJHPHQW8QLWSURYLGHVVXSSRUWRQPXOWLSOHIURQWVLQFOXGLQJWKH
deployment of management systems and the training of employees. Critical initiatives are debated by and the progress thereof is reported to the
Sustainability Committee.
Energy Consumption and CO2 Emissions by the Global DIC Group(QHUJ\FRQVXPSWLRQE\WKHJOREDO',&*URXSLQILVFDO\HDUGHFOLQHG
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IURP¿VFDO\HDUDQGIURP¿VFDO\HDUZKLOH&2 emissions
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EXWIHOOIURPWKHEDVH\HDU
7KH*URXS¶VVXFFHVVLQDFKLHYLQJDUHGXFWLRQLQWKHYROXPHRI&2 it emits
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target and the promotion of energy-saving and decarbonization initiatives.

Results of energy-saving initiatives implemented by the global DIC Group in fiscal year 2020and change from base year (fiscal year 2013)
Energyconsumption

emissions- 16.9 ％ perCO unitof production - 16.9 ％

722,955
metric tonnes

Fiscal year 20132

552,123
metric tonnes-23.6％
from fiscal year 2013

Fiscal year 2020

Reducing Fossil Fuel Use by Promoting Renewable Energy
The bulk of renewable energy used by DIC Group companies in Japan is natural energy generated by a biomass boiler and wind and solar power facilities
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SHULRGURVHWRN:KIURPN:KLQ¿VFDO\HDU
7KH',&*URXSDOVRFRQWLQXHGWRSURPRWHWKHH[SDQGHGXVHRIUHQHZDEOHHQHUJ\RYHUVHDVZLWK*URXSFRPSDQLHVLQWKH$VLD±3DFL¿FUHJLRQ*UHDWHU
China, and the Americas and Europe installing biomass boilers, wind power and solar power facilities.
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overseas.7KH*URXSZLOOFRQWLQXHWRSURPRWHHIIRUWVWRH[SDQGLWVVRODUSRZHUJHQHUDWLQJIDFLOLWLHVZRUOGZLGH,Q¿VFDO\HDUWKH*URXSSODQVWRLQVWDOOQHZVRODUSRZHUJHQHUDWLQJIDFLOLWLHVZLWKDWRWDOJHQHUDWLQJFDSDFLW\RIN:LQ-DSDQ,Q¿VFDO\HDUWKHJOREDO',&*URXSXVHGDWRWDORI*-RIUHQHZDEOHHQHUJ\DQLQFUHDVHRIIURP*-LQ¿VFDO\HDU7KH
XVHRIUHQHZDEOHHQHUJ\DFFRXQWHGIRUDUHGXFWLRQLQWKH*URXS¶VJOREDO&2HPLVVLRQVRIWRQQHVPreventing Environmental Pollution
Since 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 substances into the environment. Against this backdrop, the DIC Group strives to ensure a graspof the environmental impact of its operations and promotes systematic efforts to prevent environmental pollution.

DIC Report 2021 ̲50

Reducing Emissions of VOCs
+DYLQJVXFFHHGHGLQDFKLHYLQJDYROXQWDU\WDUJHW²VHWLQ¿VFDO\HDU²IRUUHGXFLQJHPLVVLRQVRI92&VLQWRWKHDLURIIURPWKH¿VFDO\HDUOHYHOE\¿VFDO\HDU',&*URXSFRPSDQLHVLQ-DSDQFRQWLQXHWRSXUVXHVWHDG\DQQXDOUHGXFWLRQWKURXJKIDFLOLW\LPSURYHPHQWVDQG
emissions management.
,Q¿VFDO\HDUWRWDOHPLVVLRQVRI92&VE\WKH',&*URXSLQ-DSDQDPRXQWHGWRWRQQHVGRZQIURP¿VFDO\HDU)DFWRUVEHKLQGWKLVUHVXOWLQFOXGHGWKHDEVHQFHRIDQDFFLGHQWLQYROYLQJDZDUHKRXVH¿UHDWWKH6DLWDPD3ODQWZKLFKKDGFDXVHGDVKDUSLQFUHDVHLQHPLVVLRQVLQWKH
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continued to promote efforts to reduce emissions. In the PRC, in particular, the Group is updating equipment and stepping up emissions management
practices in response to the tightening of pertinent local regulations.
Building a Circular Economy
The building of a circular economy is not something that can be achieved by any one company. Accordingly, key initiatives are being promoted byindustrial and public–private partnerships around the world. In Japan, DIC is a member of the Japan Initiative for Marine Environment (JaIME), formed
E\¿YHFKHPLFDOVLQGXVWU\RUJDQL]DWLRQVDQGWKH-DSDQ&OHDQ2FHDQ0DWHULDO$OOLDQFH &/20$ D0LQLVWU\RI(FRQRP\7UDGHDQG,QGXVWU\ 0(7, ±OHG
DOOLDQFHRIFRPSDQLHVLQWKHSODVWLFSURGXFWVVXSSO\FKDLQ2YHUVHDV6XQ&KHPLFDOSDUWLFLSDWHVLQ$&LUFXODU(FRQRP\IRU)OH[LEOH3DFNDJLQJ &()/(; DFRQVRUWLXPZRUNLQJWRPDNHÀH[LEOHSDFNDJLQJLQ(XURSHFLUFXODUHQVXULQJLWVDELOLW\WRDFFHVVDQGVKDUHWKHPRVWXSWRGDWHLQIRUPDWLRQDFURVVWKH
DIC Group. The Company has also organized projects involving various departments concerned with the circular economy to promote the collection ofplastics, as well as the shift to alternative and/or biodegradable materials.

Managing Industrial Waste
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materials and raw materials for cement, using thermal recycling to recover waste heat and minimizing production losses by increasing throughput yields.
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IURP¿VFDO\HDU7KHSULQFLSDOIDFWRUVEHKLQGWKLVGHFOLQHZDVDGHFUHDVHLQSURGXFWLRQYROXPHDVDUHVXOWRI&29,',QGXVWULDOZDVWHGLVSRVHG
RIDVODQG¿OOE\*URXSFRPSDQLHVLQ-DSDQIHOOWRWRQQHVUHÀHFWLQJLPSURYHGUHVRXUFHUHF\FOLQJUDWHVDWSURGXFWLRQIDFLOLWLHV*RLQJIRUZDUG
WKH',&*URXSZLOOFRQWLQXHZRUNLQJWRUHGXFHLQGXVWULDOZDVWHGLVSRVHGRIDVODQG¿OOE\LQGLYLGXDOSURGXFWLRQIDFLOLWLHVLQOLQHZLWKLWVJRDORIDFKLHYLQJzero emissions.

Managing Water Resources

Production
volumeTotal energy consumption(crude oil equivalent)

3,827,000 GJ

OUTPUTDIC Group(Japan)INPUT

6LQFH¿VFDO\HDUWKH',&*URXSKDVXVHGWKH*5,¶VJXLGHOLQHWRFROOHFWGDWDRQZDWHUZLWKGUDZQDQGGLVFKDUJHGDWHDFKVLWH,QUHFHQW
years, companies have also been required to set context-based water targets, i.e., targets that take into account local water conditions and site
RSHUDWLRQV$FFRUGLQJO\',&KDVHVWDEOLVKHGDFRQVLVWHQWJOREDOIUDPHZRUNIRUDVVHVVLQJZDWHUULVNVDQGLQ¿VFDO\HDUEHJDQPDSSLQJ
regional water risks using two scales, namely, “regional water risks” and “operational water risks.” Regional water risks are mapped using the
Aqueduct water risk assessment tool, while operational water risks are mapped using a questionnaire developed in-house.

*1

tonnes from fiscal year 2019327 -39.5%

fiscalyear 2019-0.2% fromtonnesSOx emissions

tonnes from fiscal year 2019

tonnes（-7.6％）

12

fiscalyear 2019+51.8 % fromtonnesEmissions into water
Total water
consumption

Wastewater discharged

25,220,000

26,902,000 ㎥

1,002,000
tonnes（-0.6％）

51̲ DIC Report 2021

6,552,000 GJ +0.3%
from fiscal year 2019

Total water
consumption

9,621,000 ㎥ -13.2%
from fiscal year 2019

-3.9%
m3 from fiscal year 2019

167

27

358,000 +0.4

0Emissions into soil%

tonnes from fiscal year 2019

Emissions into water
Wastewater
discharged

7,717,000 -15.8
tonnesfrom fiscal year 2019

Soil-related emissions of targeted substances(551 substances andone substance group)*2
tonnes-14.3

Emissions into the air
CO2 emissions-23.3 %

tonnes(Toxic industrial waste included: 16 tonnes)

Aquatic emissions of targeted substances(551 substances and%one substance group)*2
tonnes from fiscal year 2019OUTPUT

INPUT

Production
volumeTotal energy consumption(crude oil equivalent)

Emissions into soil
Industrial waste disposedof as landfill

COD in-15.0 %
wastewater 723 tonnes from fiscal year 2019fiscal
-3.7% fromyear 2019

DIC Group(Overseas)NOx emissions

194,000 -12.0% 182
Atmospheric emissions of targeted substances(551 substances and one substance group)*2

fiscal
-8.5% fromyear 2019825,000

Emissions into the air
CO2 emissions

Industrial waste
disposed of as landfill

19,058tonnes-5.8 %

the fiscal year 2019%from fiscal year 2019

(Toxic industrial waste
included: 2,572 tonnes)*1 7KH¿JXUHVLQWKLVGLDJUDPGRQRWLQFOXGHHPLVVLRQV
attributable to the use of renewable energy.
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substances (other than class 1) and one substanceJURXS FKDLQK\GURFDUERQVZLWKXSWR±FDUERQ
atoms) targeted for study by the JCIA. A PRTR
is a scheme for assessing, aggregating anddisseminating data on the source of hazardous
chemicals, amounts released into the environment
and amounts transferred off-site from industrial
establishments via waste products.

Safety in Logistics
The DIC Group works with logistics partners to minimize risks, including by supplying information needed for the shipping/transport of its products.

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Trade Administration Group, is charged with advancing initiatives to enhance the safety and—by promoting the transport of products using modes oftransport qualifying as “modal shift”—reduce the environmental impact of its logistics activities.
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the current population of drivers and the high turnover rate among drivers as a result of the pandemic. Against this backdrop of uncertainty, the Company
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Transport and Tourism, the Ministry of Economy, Trade and Industry, and the Ministry of Agriculture, Forestry and Fisheries—and to implement measuresin line with its own declaration of voluntary action to strengthen cooperation with logistics partners and transport companies to ensure business continuity.
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through the remote sharing of information. This includes preparing Group regulations, manuals and systems in advance of the Regional Comprehensive
Economic Partnership (RCEP), which is scheduled to go into effect in the near future.

Ensuring the Safety of Chemical Substances
The DIC Group continues working to provide appropriate information to stakeholders to ensure the appropriate handling of its products over their entire life cycles.

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5HJXODWLRQ ..',.LVDQDFURQ\PFRQVLVWLQJRIWKH¿UVWOHWWHURIHDFKZRUGLQ³UHJLVWUDWLRQHYDOXDWLRQDXWKRUL]DWLRQDQGUHVWULFWLRQ´LQ7XUNLVK RWKHUZLVH
known as Turkish REACH. At the same time, the Group collaborated with pertinent departments in Japan and overseas to gather information and
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RI.RUHD 52. ¶V2FFXSDWLRQDO6DIHW\DQG+HDOWK$FWDQG7DLZDQ¶V7R[LFDQG&KHPLFDO6XEVWDQFHVRI&RQFHUQ&RQWURO$FW 7&6&&$ In the area of systems for managing chemical substance information, the Group continued building a new global system for managing chemical
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Quality

QR codeEnhancing Product Quality and Customer Satisfaction
https://www.dic-global.com/en/csr/quality/+DYLQJUHFHQWO\FRQGXFWHGDUHYLHZRIWKH3URGXFWLRQ0DQDJHPHQW8QLW¶V4XDOLW\$VVXUDQFH'HSDUWPHQWDQGLQGLYLGXDOSURGXFWGLYLVLRQV¶TXDOLW\
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into the Production Management Unit. The goals of this realignment were to ensure the independence of the framework for promoting quality assuranceWRHQVXUHFXVWRPHUV¶TXDOLW\UHTXLUHPHQWVFODULI\WKHUROHVRITXDOLW\FRQWURODQGTXDOLW\DVVXUDQFHHQVXULQJWKDWHDFKIXO¿OOVLWVSURSHUIXQFWLRQZKLOHPRQLWRULQJWKHRWKHUDQGSRVLWLRQWKH4XDOLW\$VVXUDQFH'HSDUWPHQWDQGWKHQHZO\LQDXJXUDWHG4XDOLW\&RQWURO'HSDUWPHQWXVLQJWKHLUUHVSHFWLYH
reporting lines, to identify issues facing sites and product divisions and devise the most effective measures in response.
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products and services that satisfy its customers.
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agent MEGAFOAM,+KDGEHHQGLVFRYHUHGDQGDVDFRQVHTXHQFHDSSURYDORIWKHSURGXFWKDGEHHQUHVFLQGHG7ZRPRQWKVODWHURQ1RYHPEHU
19, DIC published a notice of measures to be taken to determine the cause of this incident and prevent recurrence on its global website. The Company
is currently in the process of replacing this product with a new type-approved alternative to avoid causing undue inconvenience to customers and otherrelated parties.
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DIC takes these audit results seriously and is taking corrective actions to improve its quality management system, as well as to prevent recurrence, to
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deepest regrets for any anxiety or trouble caused to customers or other related parties.

DIC Report 2021 ̲52

Human Resources Management

SDGs Goals 3, 4, 5, 8 and 10
QR codeWorking to Enhance Job Satisfaction

https://www.dic-global.com/en/csr/stakeholder/staff.html| Strategies for a Stronger Management Infrastructure
In line with The DIC Way, which represents its fundamental management policy, the DIC Group has established a global human resources management framework
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$PHULFDDQG$IULFDDUHRYHUVHHQE\6XQ&KHPLFDORIWKH8QLWHG6WDWHV7KH',&PHGLXPWHUPPDQDJHPHQWSODQZKLFKZDVLQWURGXFHGLQ)HEUXDU\
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FHQWHUVRQIRXUFRUHWKHPHVVXPPDUL]HGDV³ZRUNVW\OHUHYROXWLRQ´³+5LQIUDVWUXFWXUHUHIRUP´³QH[WPDQDJHPHQWVHOHFWLRQ´DQG³JOREDOWDOHQWGHYHORSPHQW´
WING: DIC111 Strategies for Human Resources Management
Work Style Revolution

HR Infrastructure Reform

Next Management Selection

Global Talent Development

Reform work styles to capitalize on diversified individuality■ Reform jobs with digital tools.
■ Reform working conditions by introducing
telework and flexible working hours.
■ Shift focus of evaluation from quantity to quality.
■ Support employees who have childcare or
nursing care responsibilities or suffer illness, etc.

Adopt a global human resources system
and unify Group system■ Consolidate employee qualification systems globally.
■ Unify qualification standards and assessment
formats for management-level employees.
■ Develop IT system for global human resources platform.

Establish system to appoint the nextmanagement team
■ Clarify requirements for employees in key positions.
■ Establish selection and monitoringprocesses for high-potential employees.
■ Use talent review to optimize combinationof positions and employees.

Develop global human resources■ Define level of and set requirements for
global human resources.
■ Systematize global human resources
development programs(English-language ability, competency, work
experience, etc.)

Progress in Fiscal Year 2020
① Work style revolution,QWURGXFHGOHDYHIRUHPSOR\HHVWRDFFRPSDQ\VSRXVHVRYHUVHDVDQGVKRUWWHUPSDLGOHDYHSURJUDPVDQGLPSOHPHQWHGLQLWLDWLYHVWRSURPRWHWHOHZRUNV\VWHPDQGDZDUHQHVVRIÀH[LEOHZRUNLQJRSWLRQV② HR infrastructure reform
・%XLOWKXPDQUHVRXUFHVGDWDEDVHIRUPDQDJHPHQWOHYHODQGKLJKHUHPSOR\HHVLQ-DSDQWKH35&DQGWKH$VLD±3DFL¿FUHJLRQ・&UHDWHGJOREDOXQL¿HGDVVHVVPHQWV\VWHPIRUHPSOR\HHVLQNH\SRVLWLRQV③ Next management selection
Reinforced approach to selecting new management candidates by enhancing training for such candidates and expanded scope of human resources assessments④ Global talent development
Augmented existing development programs for global human resources by considering a method of assessing language ability, including conversational prowess| Inauguration of the WSR 2020 Project
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・Creation of workplaces that encourage enthusiasm about taking on various challenges, where performance is evaluated fairly and personal value is recognized・(VWDEOLVKPHQWRIV\VWHPVWKDWHQVXUHHPSOR\HHDFKLHYHPHQWVDUHUHÀHFWHGDSSURSULDWHO\LQWUHDWPHQWDQGFUHDWLRQRIHQYLURQPHQWVLQZKLFKRUJDQL]DWLRQDOJURZWKLVOLQNHGWRHPSOR\HHJURZWK● Smart employees
・Formulation of rules for new work styles and improvement of employee digital literacy● 6PDUWRIÀFHV
・Creation of environments in which individuals and groups can exercise their abilities anytime and anywhere● Smart processes
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Basic Personnel Statistics (DIC)

Male
Number of
employees

FemaleOverallMale

Average age

FemaleOverall

Averageyears ofemployment

New
graduates
hired

Male
FemaleOverallMale
FemaleOverall53̲ DIC Report 2021

Fiscal year 2018

Fiscal year 2019

Fiscal year 2020

2,628
662
3,290
42.5
41.9
42.4
18.4
19.7
18.6
43
19
62

2,640
681
3,321
42.6
42.1
42.5
18.3
19.8
18.6
44
22
66

2,669
691
3,360
42.7
42.5
42.7
18.3
20.1
18.6
56
22
78

Retention rate
(after three
years)
Separations(voluntary)(number ofindividuals)

Male
FemaleOverallMale
FemaleOverallMale

Separation rate(voluntary)

FemaleOverallFiscal year 2018

Fiscal year 2019

Fiscal year 2020()LVFDO\HDUKLUHV)()LVFDO\HDUKLUHV)()LVFDO\HDUKLUHV)

87.8%
81.0%
86.3%
55
15
70
2.1%
2.3%
2.1%

97.2%
76.9%
91.8%
45
16
61
1.7%
2.3%
1.8%

92.3%
100%
94.0%
33
16
49
1.2%
2.3%
1.5%

| Respect for Human Rights
The DIC Group actively supports global codes governing human rights,*LQOLQHZLWKZKLFKLQ¿VFDO\HDULWIRUPXODWHGWKH',&*URXS+XPDQ5LJKWV3ROLF\DQGEHJDQSURPRWLQJUHODWHGLQLWLDWLYHV7KH',&*URXS&RGHRI%XVLQHVV&RQGXFWZKLFKRXWOLQHVVWDQGDUGVWKDWDIC Group employees are expected to observe, lays down provisions prohibiting human rights violations and requiring respect for diversity,
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,QUHVSRQVHWRWKH0RGHUQ6ODYHU\$FW  DIC is reinforcing training regarding human rights due diligence,*3FRJQL]DQWRIWKHLVVXHRIKXPDQWUDI¿FNLQJ
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H[SORLWDWLRQDQGIRUFHGRUJDQGRQDWLRQ *3 +XPDQULJKWVGXHGLOLJHQFHLVDQRQJRLQJULVNPDQDJHPHQWSURFHVVWKDWDFRPSDQ\QHHGVWRIROORZLQRUGHUWRLGHQWLI\SUHYHQWPLWLJDWHDQGDFFRXQWIRUKRZLWDGGUHVVHVLWVDGYHUVHKXPDQULJKWVLPSDFWV| Initiatives in Fiscal Year 2020
$WRWDORI',&*URXSFRPSDQLHVLQ-DSDQDQGRYHUVHDVLPSOHPHQWYROXQWDU\KXPDQULJKWVDQGODERUSUDFWLFHVLQVSHFWLRQV,QILVFDO\HDU
LQLWLDWLYHVIRFXVHGRQSURPRWLQJDZDUHQHVVRIWKH',&*URXS+XPDQ5LJKWV3ROLF\DFURVVWKH*URXS$VLQ¿VFDO\HDULQVSHFWLRQVLQ¿VFDO\HDUXVHGDTXHVWLRQQDLUHWKDWKDGEHHQUHYLVHGEDVHGRQWKHUHVXOWVRILQVSHFWLRQVFDUULHGRXWLQWKHSUHYLRXVSHULRG+DYLQJDQDO\]HGDQGYHUL¿HGWKHUHVXOWVRILQVSHFWLRQVWKH*URXSLPSOHPHQWVIROORZXSLQTXLULHVDQGXVHVLWV¿QGLQJVWRSURPRWHHIIRUWVWRUDLVHDZDUHQHVV,Q¿VFDO\HDUWKH*URXSFRQGXFWHGKXPDQULJKWVGXHGLOLJHQFHDWWKUHH*URXSFRPSDQLHVLQ,QGRQHVLDZKLFKFRQ¿UPHGWKDWWKHUHZHUHQRYLRODWLRQV*XLGDQFHZDVSURYLGHGRQDYDULHW\RISRLQWVWRSUHYHQWWKHULVNRIYLRODWLRQVIURPDULVLQJ

| Diversity Promotion and Work Style Revolution
The DIC Group actively pursues diversity by employing a broad spectrum of individuals without regard to such considerations as gender, nationality,
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Hiring Diverse Human Resources:LWKWKHREMHFWLYHRIVHFXULQJWDOHQWHGLQGLYLGXDOVZLWKDGYDQFHGVSHFLDOL]HGFDSDELOLWLHVJOREDOSHUVSHFWLYHVDQGODQJXDJHFDSDELOLWLHV',&DFWLYHO\SURPRWHVWKH
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As someone helping to drive further diversity at DIC, I look forward to contributing to the evolution

VOICE of both the Company and society.

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Thimthong Narumon

DIC Recognized as Nadeshiko Brand for Fiscal Year 2020, Earning Selection
for the Third Consecutive YearIn recognition of its superb achievement in expanding career opportunities for women, DIC was
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Advancing the Employment of Individuals with Disabilities',&LVFRPPLWWHGWRFUHDWLQJLQFOXVLYHZRUNHQYLURQPHQWVWKDWKHOSLQGLYLGXDOVZLWKGLVDELOLWLHVHQMR\DFWLYHDQGIXOILOOLQJFDUHHUV2QHLQLWLDWLYHLVDQ
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DIC Report 2021 ̲54

VOICE I look forward to sharing the basic principles of safe workplace conduct that I have learned with new employees and interns.
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Business Support Department, DIC Estate Co., Ltd.

Ryosuke Maruyama| Work Style Revolution Initiatives that Support a Healthy Work–Life Balance',&YLHZVDKHDOWK\ZRUN±OLIHEDODQFHDVHVVHQWLDOWRERWKVHOIUHDOL]DWLRQDQGVXVWDLQDEOHFRUSRUDWHJURZWK$FFRUGLQJO\IURPWKHVWDQGSRLQWRIFRUSRUDWHKHDOWKPDQDJHPHQW WKH&RPSDQ\FRQWLQXHVWRH[SDQGV\VWHPVLQWHQGHGWRIDFLOLWDWHVXFKDEDODQFH
In response to falling birthrates and lengthening life spans, the Japanese government has launched a drive to promote work style revolution, in line with its belief
that positive workplaces lead to higher productivity, with the aim of helping individuals balance the demands of a career and childcare or nursing care and improving
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regular employees the option to accept or refuse transfers requiring relocation and, sinceDV\VWHPWKDWDOORZVPDQDJHPHQWOHYHOHPSOR\HHVWROLPLWWKHORFDWLRQVWRZKLFKWKH\
will accept transfers, making it easier for individuals who are unable to accept transfers that
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execution of duties to reinforce self-management capabilities, thereby accelerating efforts to galvanize employees and encouraging them to give full play
WRWKHLUFUHDWLYLW\Major Expansion of the Flextime System
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WRDOODUHDVRIRSHUDWLRQVRWKHUWKDQSURGXFWLRQÀRRUV7KHV\VWHPPDNHVLWSRVVLEOHIRUHPSOR\HHVWRGHWHUPLQHWKHWLPHDWZKLFKWKH\HQGWKHLUZRUNLQJGD\WRWKHH[WHQWWKDWLWGRHVQRWKLQGHUEXVLQHVVHI¿FLHQF\DVZHOODVWRVLPXOWDQHRXVO\PDNHXVHRIWHOHZRUNZLWKWKHJRDORISURPRWLQJWKHLQGHSHQGHQWH[HFXWLRQRIGXWLHVDQGHQKDQFLQJVHOIPDQDJHPHQWFDSDELOLWLHV| New Human Resources Development Policies
DIC recognizes that a critical prerequisite for sustainable growth going forward is having employees—the source of its competitiveness—who
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In line with its Health Management Declaration, the DIC Group works actively to support the physical and mental health of its employees,
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Sustainable Procurement

SDGs Goal 12
QR codePromoting Socially Responsible Procurement Across the Supply Chain
https://www.dic-global.com/en/csr/stakeholder/partner.html| Promoting Sustainable Procurement
Having recognized the increasing importance of addressing global issues related to human rights, climate change and water risk, among others,
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DVRFLDOO\UHVSRQVLEOHPDQQHULQWKH*URXSHVWDEOLVKHGWKH',&*URXS8QLYHUVDO3XUFKDVLQJ3ROLF\EDVHGRQZKLFKLWODWHUIRUPXODWHGSXUFKDVLQJPDQDJHPHQWUHJXODWLRQVDQGFODULILHGLVVXHVLWH[SHFWVVXSSOLHUVWRDGGUHVV8VLQJWKH',&*URXS6XVWDLQDEOH3URFXUHPHQW*XLGHOLQHVUHYLVHGLQ)HEUXDU\WKH*URXSSURPRWHVVXVWDLQDEOHSURFXUHPHQWDFURVVLWVVXSSO\FKDLQE\HQVXULQJWKDWDOOVXSSOLHUVLPSOHPHQWLPSURYHPHQWVDQGLQLWLDWLYHVDVQHFHVVDU\*URXSFRPSDQLHVLQ-DSDQWKH$PHULFDVDQG(XURSH*UHDWHU&KLQDDQGWKH$VLD±
3DFL¿FUHJLRQFROODERUDWHWRHQVXUHVXVWDLQDEOHSURFXUHPHQWRQDJOREDOEDVLVThe DIC Group Universal Purchasing Policy*XLGHGE\DQDFWLRQSROLF\HVWDEOLVKHGWRUHDOL]HWKH',&*URXS¶VEDVLFVXVWDLQDEOHSURFXUHPHQW
principles, the Purchasing Department adheres to the following guidelines in dealing with suppliers:

The DIC Group Sustainable
Procurement Guidelines❷ An appropriate purchasing process and the building of relationships of mutual trust❶ &RPSOLDQFHZLWKODZVVRFLDOQRUPV❷ Human rights and work environments❸ 6DIHW\DQGKHDOWK❹ Consideration for the environment❺ Information security❻ Appropriate quality and safety and technological

The DIC Group, as a good partner for suppliers, will build long-lasting, mutually trusted relationships with
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❼ 6WDEOHVXSSOLHVDQGÀH[LEOHUHVSRQVHVWRFKDQJH❽ Promotion of sustainability and sustainable❶ Fair and transparent business practices

The DIC Group will implement fair and open purchasing activities with suppliers based on global
perspectives, without the constraints of FRQYHQWLRQDOFRPPHUFLDOFXVWRPV❸ Satisfying environmental/safety needs

improvements

procurement initiatives

The DIC Group will take responsibility as an exemplary corporate citizen for environmental affairs,
occupational safety, human health and product quality, always take into account changes in society andLPSOHPHQWHQYLURQPHQWIULHQGO\SXUFKDVLQJDFWLYLWLHV
❹ Challenge the creation of new value

In order to respond at a high level to a new value sought by society, the DIC Group will proactively
challenge the creation of such value together with suppliers, with whom the same goal can be shared,
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| Supplier Self-Evaluations
In accordance with the DIC Group Sustainable Procurement Guidebook, the DIC Group asks suppliers to evaluate themselves by completing a
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| Analyzing the Results of Questionnaires%HWZHHQ-XQHDQG)HEUXDU\WKH',&*URXSXVHGYHUVLRQRIWKHDIC Group Sustainable
Procurement GuidebookZKLFKZDVSXEOLVKHGLQ)HEUXDU\WRFRQGXFWDVVHVVPHQWVIRUQHZ
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assessing questionnaire responses, the Group provided feedback and where necessary requested
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previously titled DIC Group Supply-chain CSR Deployment Guidebook²IRUDFXPXODWLYHWRWDORIFRPSDQLHVDFFRXQWLQJIRUSOXVRIWKHSURFXUHPHQWVSHQGLQJ

| Responsible Procurement of Minerals
The DIC Group has formulated a Basic Approach to the Responsible Procurement of Minerals, recognizing
the importance of procuring these critical resources in a responsible manner and engaging with suppliers to
DGGUHVVWKLVFKDOOHQJHWKURXJKRXWLWVVXSSO\FKDLQBasic Approach to the Responsible Procurement of Minerals

https://www.dic-global.com/en/csr/stakeholder/conflict.html

Feedback sheet

DIC Report 2021 ̲56

Business Models that Respond to Social Imperatives

SDGs Goals 8, 9 and 11
QR codeCultivating Next-Generation Businesses

https://www.dic-global.com/en/csr/stakeholder/customer.html| New Pillar Creation: Promoting New Businesses that Respond Accurately to the Changing Needs of Society
The DIC Group sees one of its key missions as being to achieve sustainable growth both for itself and society by helping to address social
imperatives related to climate change, the digitization of society, urbanization and longevity by identifying key business domains andproviding products that respond to such imperatives.
With the goal of swiftly realizing this mission, DIC has outlined two basic business development strategies in its medium-term
management plan, DIC111: Value Transformation and New Pillar Creation. In line with the strategy of Value Transformation, the Group will
advance qualitative reforms in existing core businesses by shifting to businesses with differentiated high-value-added products and withmore of a focus on social value. New Pillar Creation emphasizes creating new businesses by identifying areas where ESH-related issues
and social changes intersect with the DIC Group’s competencies.

| Examples of New Pillar Creation
1

Flake Alumina Filler that Imparts Outstanding Strength and Heat Dissipating Properties and Is
Expected to Contribute to the Proliferation of CASE Vehicles and 5G-Enabled Devices

The growing importance of the CASE (Connected, Autonomous, Shared and Electric)* concept
and the deployment of the 5G cellular telecommunications standard continue to drive the trend
toward ever-smaller components with more sophisticated performance features in both theautomobile and electronics industries. As a consequence, the dissipation of heat generated
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thermal stability, are used to impart heat dissipating properties to automotive and electronics
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reduces energy use and CO2 emissions arising from their production.

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HOHFWUL¿FDWLRQ²LQZKLFKQH[WJHQHUDWLRQWHFKQRORJLHVDQGVHUYLFHVDUHGH¿QLQJWKHIXWXUHRIWKHDXWRPRELOHLQGXVWU\2

Development of Thermoplastic Composites with Antiviral and Antibacterial Properties for Use with 3D Printers

Owing to technological innovations in modelling, together with the increasing diversification and sophistication of materials, 3D printer technologies,
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of COVID-19 driving consumer concern for proper sanitization, calls have increased for the use of antiviral and antibacterial products in all locations, notonly in hospitals and public facilities. The DIC Group recently succeeded in developing thermoplastic composites with antiviral and antibacterial properties
IRUXVHZLWK'SULQWHUV7KHVHPDWHULDOV²WKHHIIHFWLYHQHVVRIZKLFKKDVEHHQSURYHQLQWHVWVFRQGXFWHGLQDFFRUGDQFHZLWKWKH,62¶VVWDQGDUGIRU
DQWLYLUDODQGDQWLEDFWHULDODFWLYLW\²VXSSUHVVWKHJURZWKRIFHUWDLQYLUXVHVDQGEDFWHULDRQWKHVXUIDFHRISURGXFWVLQZKLFKWKH\DUHXVHG0RUHRYHUWKHVHFRPSRVLWHVDUHPDGHZLWKSRO\XUHWKDQHUHVLQZKLFKERDVWVRXWVWDQGLQJÀH[LELOLW\DQGDEUDVLRQUHVLVWDQFHDQGWKXVRIIHUSURPLVHIRUXVHLQSURWHFWLYH
gear for medical, nursing care and public hygiene–related applications, including face shields and plastic masks. In addition, these composites are
expected to be used in molded products that require antiviral treatment and that must be customized to the needs of individual customers. Looking ahead,
DIC will continue working to contribute to the realization of a safe, secure and comfortable society by expanding its marketing focus to include such diverse
industries as electronics and electrical appliances, sports equipment, household goods, housing and building materials, and automobiles.
3

R&D Aimed at Developing Advanced Plastic Materials Recycling Technologies and Helping Realize a Circular Economy

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challenges that it has a responsibility to address under its sustainability strategy and is stepping up pertinent initiatives. Recently, DIC commenced
demonstration testing as part of the New Energy and Industrial Technology Development Organization (NEDO) to develop materials recycling processes as
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development of materials regeneration processes and conducting basic research on the impact of packaging materials such as inks and adhesives on theproperties of recycled plastic. DIC will also use the results of such research to promote the development of low–environmental impact inks, adhesives andRWKHUSURGXFWV3DUWLFLSDWLRQLQ1('2¶VSURMHFWZLOOHQDEOHWKH&RPSDQ\WRFRQWULEXWHVLPXOWDQHRXVO\WRUHVROYLQJWKHLVVXHRISODVWLFZDVWHDQGDFKLHYLQJthe practical implementation of advanced plastic resource recycling.

57̲ DIC Report 2021

New Technology Development and Value Creation

SDGs Goals 9 and 12
QR codeProposing Solutions that Leverage Core Technologies
https://www.dic-global.com/en/csr/new_technology/| Achieving Sustainable GrowthWith the aim of achieving its Color & Comfort by Chemistry management vision, the DIC Group is leveraging its basic technologies, including those in the areas of optics
and color, organic molecular design, polymer design and dispersion, as well as its core technologies in such areas as polymer synthesis, compounding and formulation, andsurface treatment, to develop high-value-added products that contribute to a sustainable society. The Group is also building a portfolio of next-generation products and newtechnologies by integrating technological resources originating across the Group, as well as actively promoting open innovation, to drive sustainable growth.
Products for Use in Electronics Equipment,QWKHDUHDRIGLVSOD\VWKH',&*URXSKDVUHFHQWO\GHYHORSHGDYDULHW\RIQHZSURGXFWVLQFOXGLQJJUHHQDQGEOXHSLJPHQWVIRUFRORU¿OWHUVXVHGLQKLJKGH¿QLWLRQQH[W
generation OLEDs and highly reliable PSA LCs that boast outstanding response time for 8K televisions. Achievements to advance applications for LC technologies
include the development of smart windows and LC antennas. Newly developed synthetic resins include a highly heat-resistant novolac resin for use in resists that arecompatible with development using mildly alkaline solutions. In industrial tapes, the Group recently developed an ultrathin tape for smartphones that offers excellent
adhesiveness and easy removability.
Products for Packaging and Graphics Applications
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inks, DIC developed several new series that comply with the Japan Printing Ink Makers Association’s Negative List (NL) (voluntary standards for inks used on food packaging).
Overseas, the Sun Chemical Group expanded into such areas as compostable adhesives, food-contact inks, deinking agents and products with a high biomass content.

| $*OREDO5 '&RQÀJXUDWLRQWKDW8QGHUSLQV3URGXFW'HYHORSPHQW
DIC’s R&D organization in Japan comprises the Technical Management Unit, which is responsible for R&D connected directly to businesses; the R&D Management Unit,
which is responsible for adding depth to existing and fostering new basic technologies; and the New Business Development Headquarters, which is charged with creating
strategic new businesses and commercializing business units’ next-generation product groups. These entities promote the global development of products and technologies
in collaboration with the R&D components of DIC Group companies around the world. These include DIC Graphics; the Sun Chemical Group’s research centers in the UnitedStates, the United Kingdom and Germany; Qingdao DIC Finechemicals Co., Ltd., which conducts comprehensive R&D tailored to market needs in the PRC; printing inks
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Technical Center–Korea; and an algae research center in the United States.
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| Protecting Intellectual Property
Recognizing the effective use of intellectual property as indispensable to new technology development and value creation, a key management challenge, business groups andtechnical and intellectual property teams are working as one to advance intellectual property strategies. Capitalizing on this approach, the DIC Group is actively employing
an open and closed strategy to build a robust patent portfolio. The Group is also focusing efforts on the use of patent search and analysis and the gathering of highly precise
information with the aim of capitalizing on patent landscapes and other intellectual property information as key management assets.
',&¶VHIIRUWVWRUHLQIRUFHSURWHFWLRQRILWVLQWHOOHFWXDOSURSHUW\DUHDOVRDWWUDFWLQJQRWLFHRXWVLGHWKH&RPSDQ\,Q¿VFDO\HDU',&ZDVVL[WKLQDUDQNLQJRIFRPSDQLHVLQ
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VOICE We developed an adhesive for packaging materials made from recovered PET bottles.
With companies’ growing awareness of the need to contribute to the achievement of the SDGs, the importance of actively promoting
environmental protection and reducing the waste they generate have taken on greater importance. In line with the sustainability policy
outlined in DIC111, we recently developed the environment-friendly DICDRY LX-RP series of adhesives, which are made from recovered
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design, which was a process of trial and error, we worked to improve product value from a customer perspective through meticulous
inspections of PET bottle recycling processes, safety and recycling facilities. Looking forward, we will apply technologies developed in thiseffort to further expand our product lineup.
Packaging Materials Technical Group 1, Packaging Materials Technical Division, DIC Corporation

Tsukiko Takashima

DIC Report 2021 ̲58

Harmony with the Community and Social Contributions

SDGs Goals 3 and 4
QR codeAdding Color & Comfort to Lifestylehttps://www.dic-global.com/en/csr/society/

Visiting 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 among children, DIC and
DIC Graphics conduct visiting science labs at public elementary schools. Through this program, the DIC Group seeks to spark children’s interest in science and encouragethem to realize the close relationship between science and their everyday lives.
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initiative in 2010, the two companies have provided classes at 42 elementary schools for approximately 3,300 sixth graders.
In fiscal year 2020, the DIC Group made the decision to postpone visiting science labs to help prevent the spreadof COVID-19. The Group looks forward to restarting this initiative once the pandemic has subsided.

Initiatives Led by the Central Research Laboratories

Visiting science lab

DIC’s Central Research Laboratories supports education by offering a variety of programs for local high schools that leverage DIC’s unique capabilities, including lectures
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and answer sessions, and otherwise providing support for the 674 high school students seeking a career in the sciences who took part and gave presentations.
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Initiatives Led by the Kashima Plant
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6\VWHP²VLQFH,Q¿VFDO\HDUWKUHHVWXGHQWVIURPWKHVFKRRO¶VLQGXVWULDOFKHPLVWU\DQGLQIRUPDWLRQVFLHQFHSURJUDPVSDUWLFLSDWHGLQOHFWXUHVRQSURGXFW
knowledge, as well as on safety and compliance, and in practical training at the plant, from October through December.

Kawamura Memorial DIC Museum of Art
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$QRWKHUDSSHDOLQJDVSHFWRIWKHPXVHXPLVLWVORFDWLRQRQDOXVKO\IRUHVWHGKHFWDUHVLWHDOLYHZLWKVHDVRQDOÀRZHUVDQGIROLDJHWKDWKDVEHHQRSHQWRWKH
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seeing the planting and proper maintenance of new thickets to ensure they are comfortable for humans as an effective way to protect biodiversity.
,Q¿VFDO\HDUWKHPXVHXPZDVIRUFHGWRFORVHWHPSRUDULO\DQGSRVWSRQHVSHFLDOH[KLELWLRQVSODQQHGIRULWVWKDQQLYHUVDU\+DYLQJWDNHQH[WHQVLYHVWHSVto prevent the spread of COVID-19 infection and introduced a web-based reservation-only system, the museum was able to reopen safely in June 2020.
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signage, although the garden remains open to the public. During this period, the museum will prepare to restartguided tours, as well as to reopen the annex gallery and revive educational support initiatives and online events, allof which have been paused due to COVID-19. Through these and other efforts, the museum will work to ensure abeautiful, safe environment that ensures safety and peace of mind for visitors.
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its collection. The museum will promote social contribution activities with a view to encouraging communication with the community.
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Matching Gift Program
DIC has a matching gift program in Japan whereby it matches the total amount collected through an annual year-end fundraising drive spearheaded by its employees’
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59̲ DIC Report 2021

Communication with Stakeholders

SDGs Goal 17
QR codePromoting Disclosure and Communication
https://www.dic-global.com/en/csr/stakeholder/

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Corporate Governance.

Article 7 (Ensuring Appropriate Information Disclosure and Transparency)
7KH &RPSDQ\ VKDOO HQVXUH WUDQVSDUHQF\ DQG IDLUQHVV DQG LQ RUGHU WR JDLQ WKH FRUUHFW XQGHUVWDQGLQJ DQG WUXVW IURPstakeholders, shall timely and appropriately disclose information relating to matters such as the DIC Group’s management
philosophy, management policies, business plans, financial condition and sustainability activities.

Ties withshareholders
and investors

Ties withbusiness
partners

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

( Q V X U H  D S S U R S U L D W Hdisclosure and build
trusting relationships
with shareholders andinvestors, encouraging
both to evaluate DIC as an
attractive investment.

● Websites● 3URGXFWSDPSKOHWV● Digital marketing● Corporate profile DVDs
● DIC Report● &RUSRUDWH35ILOP● News releases● Television advertisements

Ties with customers

Basic approach

Communications
tools

Ties with society

Ties with employees

Ties with the media

3URPRWHVRFLDOO\UHVSRQVLEOH
procurement across the
supply chain and build solid
relationships that will facilitatesustainable procurement.

Operate in harmony withthe community and build
positive relationships
with local residents thatwill underpin the longterm sustainability ofoperations.

3URYLGH ZRUNSODFHV WKDWD U H  F R Q G X F L Y H  W R  M R Esatisfaction and enable all
employees to fulfill theirpotential. Over the longterm, 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.

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● DIC Plaza●Yuka Shoken Hokokusho● 6XSSOLHUVXVWDLQDEOHSURFXUHPHQW● Websites● 6LWHUHSRUWV● &RUSRUDWHSUR¿OH'9'V● DIC Report● News releases● Television advertisements● 3UHVVFRQIHUHQFHV● ,QWHUYLHZVZLWKMRXUQDOLVWV● DIC Report● News releases● Television advertisements● 3URGXFWLRQIDFLOLW\WRXUV● 3DUWLFLSDWLRQLQSURMHFWVLQYROYLQJ

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DIC Report

61

Ties with
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DIC Plaza(in-house newsletter)

DIC Report 2021 ̲60

Financial Report for Fiscal Year 2020
| Analysis of Results of Operations
Overview of Operating Results(Billions of yen)

FY2019Change(%)

FY2020Change (%)[Local currency basis]

Net sales

768.6

701.2

-8.8%

-6.2%

Operating income

41.3

39.7

-4.0%

1.5%

Ordinary income

41.3

36.5

-11.7%-Net income attributable to ownersof the parent

23.5

13.2

-43.7%-EBITDA*

67.4

55.6

-17.5%-¥/US$1.00 (Average rate)

109.11106.37-2.5%-¥/EUR1.00 (Average rate)

122.13121.43-0.6%-* EBITDA = Net income attributable to owners of the parent + Total income taxes + (Interest expenses – Interest income) + Depreciation and amortization

In fiscal year 2020, consolidated net sales declined 8.8%, to ¥701.2 billion. Despite the protracted COVID-19 pandemic,
economic activity recovered in multiple areas in the fourth quarter (October 1–December 31, 2020), as a result of whichshipments of many products, notably materials for use in automobiles and publication inks, recovered. Nonetheless, full-termsales shrank in all segments. Net sales were 9.6% higher in the fourth quarter than in the third quarter (July 1–September 30,2020).
Operating income slipped 4.0%, to ¥39.7 billion. Cost reductions, prompted by falling raw materials prices, reduced activity
expenses and rationalization measures, combined with a recovery in shipments in diverse businesses in the fourth quarterto boost operating income 1.5% on a local currency basis. However, operating income was pushed down by a weakening ofresults overseas after translation, a consequence of the depreciation of emerging economy currencies, among others.
Ordinary income, at ¥36.5 billion, was down 11.7%.
Net income attributable to owners of the parent fell 43.7%, to ¥13.2 billion. The principal factors behind this result were
one-time costs and an extraordinary loss associated with the acquisition of BASF SE’s Colors & Effects business, which wasannounced on August 29, 2019.
EBITDA decreased 17.5%, to ¥55.6 billion.
Segment Results(Billions of yen)

Net sales

Operating income (loss)

FY2019FY2020Change(%)

Packaging & Graphic

416.4

388.4

-6.7%

Color & Display

116.4

105.8

Functional Products

268.6

Others, Corporate and eliminations
Total

61̲ DIC Report 2021

Change (%)

Change(%)

Change (%)

FY2019FY2020

-2.9%

19.2

21.8

13.5%

23.3%

-9.1%

-6.7%

10.8

8.4

-21.7%-19.7%

236.0-12.1%-11.6%

19.2

17.1-11.1%-10.6%(32.8)(29.0)

-

-

(7.9)

(7.6)

-

-

768.6

701.2

-8.8%

-6.2%

41.3

39.7

-4.0%

1.5%

[Local currency basis][Local currency basis]

Packaging & Graphic
FY2019FY2020Change (%)[Local currency basis]

Change (%)

Net sales¥416.4 billion¥388.4 billion

-6.7%

-2.9%

Operating income¥19.2 billion¥21.8 billion

13.5%

23.3%

Segment sales declined 6.7%, to ¥388.4 billion. In the area of materials for food packaging, sales of packaging inks advanced in
Asia, as well as in the Americas and Europe, as firm demand bolstered shipments, but decreased in Japan as COVID-19 led tosluggish sales to convenience stores, among others. Although demand for print advertisements and commercial printing improved
from the third quarter forward, full-term sales of publication inks—which center on publishing inks and news inks—dwindled in
all regions as shipments, having slumped as a result of the pandemic, failed to recover completely. Sales of jet inks for digitalprinting were up as demand rebounded after flagging in the third quarter, underpinning firm shipments.
Segment operating income rose 13.5%, to ¥21.8 billion. Factors contributing to this significant increase included higher demand
for food packaging, a consequence of the pandemic, which led to firm full-term shipments of packaging inks in Asia, and in theAmericas and Europe, and of multilayer films in Japan, as well as to cost-cutting efforts, which focused on rationalization.

Color & Display
FY2019FY2020Change (%)[Local currency basis]

Change (%)

Net sales¥116.4 billion¥105.8 billion

-9.1%

-6.7%

Operating income¥10.8 billion¥8.4 billion-21.7%-19.7%

Segment sales, at ¥105.8 billion, were down 9.1%. Sales of color materials fell sharply, owing to declining shipments,
particularly of pigments for cosmetics, as mask-wearing became an ingrained part of life worldwide, as well as to persistently
weak sales of pigments for use in inks. In display materials, full-term sales rose as increased time spent by consumers athome led to robust demand in the market for LCDs, pushing up shipments of pigments for color filters and of TFT LCs.
Full-term sales of effect pigments also advanced, buttressed by higher demand in Europe for autoclaved aerated concrete forconstruction-related applications.
Segment operating income dropped 21.7%, to ¥8.4 billion. Despite increased shipments of products for the high-value-addedarea of displays in the fourth quarter, operating income plunged as production adjustments prompted the cutting of operating
rates at certain production facilities in the Americas and Europe amid stagnant shipments of pigments for cosmetics, making it
impossible to absorb fixed and other costs.

Functional Products
FY2019FY2020Change (%)

Change (%)[Local currency basis]

Net sales¥268.6 billion¥236.0 billion-12.1%-11.6%

Operating income¥19.2 billion¥17.1 billion-11.1%-10.6%

Segment sales decreased 12.1%, to ¥236.0 billion. Shipments of epoxy resins, the principal application for which issemiconductor devices, were brisk as demand for use in onboard equipment rallied in the fourth quarter. Shipments ofindustrial-use tapes, used primarily in smartphones, were also up. Although shipments of environment-friendly resins*
recovered strongly, thanks to demand for use in automobiles, full-term sales waned. Shipments of PPS compounds—uses forwhich continue to expand, underpinned by the trend toward lighter and increasingly electrified vehicles—also rose sharply inthe fourth quarter, bolstered by a recovery in the automobile market across all regions, but full-term sales declined.
Segment operating income was down 11.1%, to ¥17.1 billion. This result was despite a recovery in sales of high-value-added
epoxy resins and was attributable to the fact that lower raw materials prices and cost reductions were insufficient to offset the
decline in full-term shipments of products for diverse industrial applications, including automobiles and building materials.
* DIC uses the term “environment-friendly resins” to describe strategic resins designed to improve both environmental performance and functionality. These include waterborne, UV-curable,
polyester, acrylic and polyurethane resins.

DIC Report 2021 ̲62

|Consolidated Financial Statements
Consolidated Balance Sheet

As of December 31, 2019 and 2020

（Millions of yen）

2019

2020

AssetsCurrent assets
Cash and deposits

16,78644,885

Notes and accounts receivable–trade211,232

197,595

0HUFKDQGLVHDQG¿QLVKHGJRRGV

91,55578,273Work in process

9,566

9,065

Raw materials and supplies

58,61055,058Other

21,607

24,294

Allowance for doubtful accounts(9,437)(9,171)

399,919

399,997

262,087

262,318

Accumulated depreciation(173,547)(175,432)

Buildings and structures, net

88,54086,885

Machinery, equipment and vehicles

408,064

404,451(337,197)(337,065)

70,867

67,386

7RROVIXUQLWXUHDQG¿[WXUHV

64,38665,312

Accumulated depreciation(53,195)(54,844)

7RROVIXUQLWXUHDQG¿[WXUHVQHW

11,191

10,468Land

51,961

51,362

Construction in progress

9,616

11,977232,176

228,078

Goodwill

762

819

Software

2,585

2,963

Customer-related assets

2,674

2,853

Other

5,782

4,877

Total intangible assets

11,804

11,512

Investment securities

59,31357,201

Deferred tax assets

33,19232,407

1HWGH¿QHGEHQH¿WDVVHW

44,33963,784

Other

23,02025,705

Allowance for doubtful accounts

(680)

(734)

Total investments and other assets

159,184

178,363

403,164

417,953803,083

817,950

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Accumulated depreciation
Machinery, equipment and vehicles, net

Total property, plant and equipment
Intangible assets

Investments and other assets

Total non-current assets
Total assets

63̲ DIC Report 2021

Consolidated Balance Sheet

As of December 31, 2019 and 2020

（Millions of yen）

2019

2020

Liabilities
Current liabilities
Notes and accounts payable–trade108,562

95,263

Short-term loans payable

20,13910,275Current portion of long-term loans payable

23,45627,096

Lease obligations

1,244

1,061

Income taxes payable

2,556

4,985

Provision for bonuses

5,724

5,480

Other

48,44553,022

210,126

197,181Bonds payable

80,000100,000

Long-term loans payable

122,602123,766

Lease obligations

5,191

4,543

Deferred tax liabilities

8,768

12,525

1HWGH¿QHGEHQH¿WOLDELOLW\

21,377

17,071

Asset retirement obligations

1,696

1,691

Other

9,826

9,809

Total non-current liabilities

249,459

269,405

Total liabilities

459,585

466,586

Capital stock

96,55796,557

Capital surplus

94,456

94,468Retained earnings

218,209219,778

Treasury shares(1,823)(1,800)407,398

409,003

1,676

2,903

683

2,468

Foreign currency translation adjustment(72,671)(82,321)5HPHDVXUHPHQWVRIGH¿QHGEHQH¿WSODQV(24,346)(13,562)

Total accumulated other comprehensive income(94,658)(90,511)

Non-controlling interests

30,75732,873

Total net assets

343,497351,364

803,083

817,950

Total current liabilities
Non-current liabilities

Net assets
Shareholders’ equity

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

Total liabilities and net assets

DIC Report 2021 ̲64

Consolidated Statement of Income

Years ended December 31, 2019 and 2020
（Millions of yen）

2019

2020

Net sales
Cost of sales*URVVSUR¿W
Selling, general and administrative expenses
Freightage and packing expenses
Employees’ salaries and allowances
Provision of allowance for doubtful accounts
Provision for bonuses
5HWLUHPHQWEHQH¿WH[SHQVHVResearch and development costs
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income(TXLW\LQHDUQLQJVRIDI¿OLDWHV
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on bargain purchase
Insurance income*DLQRQVDOHVRIVXEVLGLDULHV¶DQGDI¿OLDWHV¶VHFXULWLHV
Total extraordinary income
Extraordinary loss
Loss on business liquidation
Acquisition-related expenses
Loss on disposal of non-current assets
Impairment loss
Severance costs
Loss on disaster
Provision of allowance for doubtful accounts
Amortization of past service costs/RVVRQVDOHVRIVXEVLGLDULHVDQGDI¿OLDWHVVHFXULWLHV
Total extraordinary loss
Income before income taxes and non-controlling interests
Income taxes–current
Income taxes–deferred
Total income taxes

768,568
603,199
165,369

701,223544,430
156,793

13,104
41,742
995
2,233
1,043
12,50552,414
124,037
41,332

12,914
42,776
866
2,242
(257)
12,02946,560117,130
39,663

2,420
414
2,475
1,692
7,001

1,263
416
771
2,066
4,516

3,724
811
2,496
7,031
41,302

2,225
1,384
4,117
7,726
36,452

1,401
−
1,409
1,624
4,435

5,226
1,295
531
−
7,052

−
1,914
2,399
3,078
840
1,520
551
443
316
11,061
34,676
7,869
1,461
9,330

Net income

25,346

Net income attributable to non-controlling interests
Net income attributable to owners of the parent

23,500

8,762
4,563
2,903
1,251
924
−
−
−
−
18,40325,102
10,336(1,651)
8,685
16,417
3,184
13,233

Consolidated Statement of Comprehensive Income

1,846

Years ended December 31, 2019 and 2020

（Millions of yen）

2020

2019
Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
5HPHDVXUHPHQWVRIGH¿QHGEHQH¿WSODQVQHWRIWD[
Share of other comprehensive income of associates accounted for using equity method
Total other comprehensive income
Comprehensive income

25,346

16,417327
669(4,394)
7,269
(744)
3,127
28,473

1,175
1,785(9,827)
10,689158
3,980
20,396

26,546
1,927

17,3683,028

Comprehensive income attributable to:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

65̲ DIC Report 2021

Consolidated Statement of Changes in Net Assets Years ended December 31, 2019 and 2020
Fiscal year ended December 31, 2019

（Millions of yen）

Shareholders’ equity

Balance at January 1, 2019
Cumulative effects of changes in accounting policies
Restated balance
Change in FY2019
Dividends from surplus
Net income attributable to owners of the parent
Purchase of treasury shares
Disposal of treasury shares
Change in scope of consolidation
Change in ownership interest of the parent due to transactions with non-controlling interests
Net changes of items other than shareholders’ equity
Total change in FY2019
Balance at December 31, 2019

Capital stock

Capital surplus

96,557

94,44596,557

94,445Retainedearnings

Treasury shares

207,421(774)
206,647(1,823)(1,823)(11,849)
23,500(7)
6(1)(1,823)

11,572
407,398(90)

11
94,456

11,561
218,209396,600(774)
395,826(11,849)
23,500
(7)
6
(90)
11

11
−
96,557

Total
shareholders’ equity（Millions of yen）

Accumulated other comprehensive income

Balance at January 1, 2019
Cumulative effects of changes in accounting policies
Restated balance
Change in FY2019
Dividends from surplus
Net income attributable to owners of the parent
Purchase of treasury shares
Disposal of treasury shares
Change in scope of consolidation
Change in ownership interest of the parent due totransactions with non-controlling interests
Net changes of items other than shareholders’ equity
Total change in FY2019
Balance at December 31, 2019Non-controllinginterests

Valuation difference
on available-for-salesecurities

Deferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Remeasurements
RIGHÀQHG
EHQHÀWSODQV

Total accumulated
other comprehensive
income1,407

14(67,617)(31,508)(97,704)

28,4381,407

14(67,617)(31,508)(97,704)

28,438Total
net assets

327,334(774)
326,560(11,849)
23,500
(7)
6
(90)
11

269
269
1,676

670
670
683

(5,055)(5,055)(72,671)

7,161
7,161
(24,346)

3,046
3,046
(94,658)

2,320
2,320
30,757

Fiscal year ended December 31, 2020

5,365
16,937343,497（Millions of yen）

Shareholders’ equity

Balance at January 1, 2020

Capital stock

Capital surplus

96,557

94,456

Retainedearnings

218,209

Treasury shares

Total
shareholders' equity(1,823)407,398

Change in FY2020
Dividends from surplus(8,531)

Net income attributable to owners of the parent

13,233(8,531)
13,233Purchase of treasury shares(5)

Disposal of treasury shares

28

Change in scope of equity method(3,133)

Change in ownership interest of the parent due to transactions with non-controlling interests(5)28(3,133)12

12

Net changes of items other than shareholders’ equity
Total change in FY2020
Balance at December 31, 2020

−

12

1,569

23

1,605

96,557

94,468219,778(1,800)409,003（Millions of yen）

Accumulated other comprehensive income

Balance at January 1, 2020

Valuation difference
on available-for-salesecurities

Deferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Remeasurements
RIGHÀQHG
EHQHÀWSODQV

Total accumulated
other comprehensive
income1,676

683(72,671)(24,346)(94,658)

Non-controllinginterests

30,757Total
net assets

343,497

Change in FY2020
Dividends from surplus(8,531)

Net income attributable to owners of the parent

13,233Purchase of treasury shares(5)

Disposal of treasury shares

28

Change in scope of equity method
Change in ownership interest of the parent due totransactions with non-controlling interests
Net changes of items other than shareholders’ equity(3,133)
12
1,227

1,785

(9,650)10,784

4,147

2,116

6,262

Total change in FY2020

1,227

1,785

(9,650)10,784

4,147

2,116

7,868

Balance at December 31, 2020

2,903

2,468

(82,321)(13,562)(90,511)32,873351,364

DIC Report 2021 ̲66

Consolidated Statement of Cash Flows Years ended December 31, 2019 and 2020
（Millions of yen）

2019
Net cash provided by (used in) operating activities
Income before income taxes and non-controlling interests
Depreciation and amortization
Amortization of goodwill
Gain on bargain purchase
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Interest and dividends income(TXLW\LQ HDUQLQJV ORVVHVRIDI¿OLDWHVInterest expenses
Loss (gain) on sales and retirement of non-current assets
Impairment loss
Loss on business liquidation/RVV JDLQ RQVDOHVRIVXEVLGLDULHV¶DQGDI¿OLDWHV¶VHFXULWLHV
Decrease (increase) in notes and accounts receivable–trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable–trade
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of shares and investments in capital of subsidiaries resulting in change in scope of consolidation
Proceeds from purchase of shares and investments in capital of subsidiaries resulting in change in scope of consolidation
Proceeds from sales of shares and investments in capital of subsidiaries resulting in change in scope of consolidation
Payments for sales of shares and investments in capital of subsidiaries resulting in change in scope of consolidation
3URFHHGVIURPVDOHVRIVXEVLGLDULHV¶DQGDI¿OLDWHV¶VHFXULWLHV
Purchase of investment securities
Proceeds from sales and redemption of investment securities
Payments for transfer of business
Other, net
Net cash provided by (used in) investing activities
1HWFDVKSURYLGHGE\ XVHGLQ ÀQDQFLQJDFWLYLWLHVNet increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds
Cash dividends paid
Cash dividends paid to non-controlling interests
Net decrease (increase) in treasury shares
Purchase of shares and investments in capital of subsidiaries not resulting in change in scope of consolidation
Other, net
1HWFDVKSURYLGHGE\ XVHGLQ ¿QDQFLQJDFWLYLWLHV
Effect of exchange rate change on cash and cash equivalents

2020
34,67633,127
99
−
559
(561)
(2,834)(2,475)
3,724
997
3,078
−
(1,308)(3,054)4,614(9,802)(3,543)57,298
4,335(3,865)(7,132)
50,637

25,10232,581143(1,295)(548)(124)(1,679)(771)
2,225(2,324)
1,251
8,762
−
10,781
10,158(12,453)(10,847)
60,963
3,249(2,385)(7,366)54,462(3,685)4,740(34,042)
1,613
(919)
(1,558)
235
900
−
9,508
(350)
134
(96)
(1,363)(24,884)(8,024)
4,589(32,719)
5,895(1,280)(2,817)
−
890
(16)
226
(51)
352
(78)
(3)
(33,037)(9,383)40,250(63,513)
20,000(11,849)
(767)
(1)
(186)
(1,351)(26,799)(895)(8,866)
42,105(35,325)
20,000(8,531)
(782)
23
(114)
(2,173)
6,338(3,100)24,663
16,69041,354

Net increase (decrease) in cash and cash equivalents(1,941)

Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period

18,631
16,69067̲ DIC Report 2021

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 2021 ̲68

113 Years of Achievement

DIC Group Milestones

1908

1957

1925

Enters the market for helmets andother molded plastic products

Begins production of organic pigments

Established as
Kawamura Ink
Manufactory

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

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

Enters 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

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

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

Commences sales of the
DIC Color Guide ®

DIC’s founder, Kijuro Kawamura

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

Reichhold Chemicals’
San Francisco plant

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.

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.

69̲ DIC Report 2021

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

1990

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

Actively introduces technologies
from overseas and promotes
further diversif ication

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.

2006

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 (ICCA), as befits its
status as a member of the global communityof fine chemicals manufacturers.

Certiﬁcation of DIC as signatory to
the Responsible Care Global Charter

Sustainability Initiatives

Promotes expansion of
printing inks business

DIC Color Guide ®

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.

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

Enters the multilayered films business

2008

1973

Enters themarket for LCs
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.

Acquires Coates, the printing inks
division of France’s TOTALFINA

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

Acquires the graphic arts materials division of
Sun Chemical Corporation of the United States
Becomes world’s largest
manufacturer of printing
inks in terms of market
share and a leading namein the graphic arts materials
business.

DIC’s new corporate symbol

In May 2015, completes thereconstruction of its corporate
headquarters—the DIC
Building—in Nihonbashi,Tokyo, the role of which was
expanded to include oversightof the global DIC Group.

DIC Building

2016

Introduces branding program

Brand advertisement for television

2009

2017

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.

Concludes capital and business alliance with TAIYO HOLDINGS CO., LTD.,
one of the world’s leading manufacturers of solder resist for printed wiring boards.

Establishes DIC Graphics Corporation

Sun Chemical’s headquarters

Completes
reconstructionof corporate
headquarters
in Nihonbashi

Introduces new branding
program based on theGroup’s “Color & Comfort”
brand slogan, which sets
f o r t h t h r e e c o r p o ra t evalues, and in Octobera i r s a new television
advertisement.

Nematic LCs

1986

2015

Enters capital and business alliancewith TAIYO HOLDINGS

1999

2010

2019

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

Develops the G58 series of green pigments for use in color filters forliquid crystal displays (LCDs), which deliver marked increases inbrightness and contrast compared with previous products andcontribute substantially to reduced energy consumption by LCDs.

Clarifies strategies for transforming the DIC Group’s businessportfolio, that is, for building a sophisticated portfolio focused on
ESH-related issues and social changes by advancing qualitativereforms in existing core businesses and creating new businesses
with the potential to become mainstays.

Succeeds in developing 100% soybean
oil–based printing ink

Seeks to advance globalization ofcore businesses and diversify into new areas

Develops groundbreaking series ofgreen pigments for LCD color filters

Launches DIC111 medium-term
management plan

Takes steps to advance environmental
protection and expands global presence

Prepares for a new phaseof growth

2007

2010

2014

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.

In December 2010, becomes a signatory to
the United Nations Global Compact (UNGC),
with the aim of maintaining its reputation asa 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.”

Joins United Nations
Global Compact

2015

Changes designation to“sustainability”

In-house poster promoting sustainability initiatives

Launches CSR program

Selected for inclusion in the
Dow Jones Sustainability
Indices (DJSI) Asia Pacific Index
Included for the first time in the DJSI Asia
Pacific Index, a global family of indices forsocially responsible investing and abenchmark of global sustainability.
As of 2020, has been included in the index
for six consecutive years.

DIC Report 2021 ̲70

（Contact）

Corporate Communications Dept.
Sustainability Dept.
DIC Building, 7-20, Nihonbashi 3-chome, Chuo-ku, Tokyo 103-8233, Japan
Tel: +81-3 - 6733 - 3034

Fax: +81-3 - 6733 - 3038

https://www.dic-global.com/en/

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