DIC REPORT 2015

Complete Version

Basic Management Approach
In February 2008, DIC celebrated its centennial anniversary. Taking advantage of the opportunity provided by thismilestone, the Company changed its official name to “DIC Corporation” and introduced a new corporate symbol.
Prior to embarking on its second century in business, DIC adopted “The DIC WAY,” an articulation of its new
management approach, for the entire DIC Group.
The DIC WAY comprises three elements, namely, DIC’s “management vision,” “corporate values” and“principles of conduct.” These three elements are supported by “The DIC SPIRIT.”

MANAGEMENTVISIONThe DIC SPIRITEnterprise
Integrity
Diligence

CORPORATEVALUES

PRINCIPLES OFCONDUCT

MANAGEMENT VISIONCORPORATE VALUES
Through unceasing innovation, the DIC Group strives to create
new value directed at sustainable development for its customers,society and the environment.

PRINCIPLES OF CONDUCTWe shall hone our sensitivity to changes in society and be awareof our mission to always be ahead of the times.
We pledge to incorporate the concepts of social andenvironmental sustainability into our corporate activities.
We vow to strive constantly to hone “The DIC SPIRIT.”
We shall respect the autonomy and initiative of each individual
employee in applying his or her talents to the pursuit of our values
and the realization of our vision.

Established in 1908 as a manufacturer of printing inks, DIC has expanded
its mainstay organic pigments and synthetic resins businesses while atthe same time cultivating world-class related core technologies.
Since then, DIC has leveraged these technologies to build a broad
portfolio encompassing materials and finished products. This has enabled
the Company to respond to market needs by providing customers in theautomotive, electronics, food packaging, housing and other industries
with solutions that bring “color” and “comfort” to people’s lives.
Looking ahead, DIC—today a multinational organization with operations
in more than 60 countries and territories—will redouble its efforts tocontribute to environmental protection and to the realization of a safe
and sustainable society.
DIC Report 2015

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Connecting the DIC Group and its Stakeholders

Contents

DIC Group Communications Tools

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

Printed/PDF−Form Publications

Reports on activities
DIC Report

DIC Report(summary version)

Annual Report(complete version)

A Message from the President

3

The DIC Group: A Global Powerhouse5

Messages from Top Executives at
Regional Headquarters

8

The DIC Group’s Business Portfolio

10

Developing Innovative Products that
Address Key Social Imperatives

16

Special Feature

Report on sustainability
initiatives and corporate
profile (published annually)

Report on sustainability
initiatives and corporate
profile (published annually)(Printed report)(PDF-form report)

Adhesive with Oxygen Barrier Properties (PASLIM )Epoxy Resin and Curing Agent for Infrastructure Renovation (EPICLON with LUCKAMIDE )Firefighting Foam (MEGAFOAM )Repor t on operations
and financial condition(PDF-form report)

DIC Website
DIC Global Website

Real-time informationWEB

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

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

The DIC Group’s Sustainability Program

26

Corporate Governance28

Sustainability Report

About this Report
The DIC Group publishes a combined corporate profile andsustainability report with the aim of presenting a clear, easy-tounderstand picture of the Group and its sustainability initiatives. For
fiscal year 2015, the Group published a simplified summary version(printed), which focuses on key highlights, and a more detailed
complete version (PDF), which contains extensive quantitative data.

Compliance
Risk Management
Information Security

29

Environment, Safety and Health (ESH) and Quality
Human Resources Management
Supply Chain Management

35

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

DIC Report (Complete version) (PDF-form report)
WEB

25

Topic

Groundbreaking Sun Chemical Solution Enhances
the Recyclability of Shrink Sleeve-Labeled PET Bottles

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

31
33
69
77
80
83
86
91

DIC Report 2015 and ISO 26000: A Comparison

94

Third-Party Verification

95

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

Third-Party Opinion Regarding the 2015 DIC Report

96

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

DIC Group Milestones

97

Corporate Data

99

Note : The designation “Asia–Pacific region” as used in this report refers to Asia—
excluding Japan and Greater China—and Oceania.

Links with the DIC Website

Scope of Reporting

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

http://www.dic-global.com/en/csr/pdf/dic_report_scope_en_2015.pdf

Reporting Period

Fiscal year 2014 (January 1–December 31, 2014)

Cover Design

Date of Publication

The cover of this year’s DIC Report is a paper craft
artwork evoking the contributions DIC products make to
comfortable, vibrant communities. The design also alludes
to the idea of the DIC Group’s business activities providing
attractive, exciting products to customers around the world
and driving growth.

June 2015 (The next report is scheduled for publication in June 2016.)

Guidelines Referenced

Guidelines referenced in the preparation of this report were ISO 26000, theInternational Organization for Standardization’s standard for social responsibility,
released in 2010, and Japan’s Responsible Care Code.

DIC Report 2015

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A Message fromthe President

Representative Director,
President and CEO
DIC Corporation

Yoshiyuki Nakanishi

We continue working to address challenges with thegoal of creating value through our business activities and achieving
sustainable growth for the DIC Group.
A Global Fine Chemicals Manufacturer
The DIC Group is a multinational organization comprising 176 companies in 63 countries and territories. In fiscal year 2013, we embarked on ourcurrent medium-term management plan, DIC105, which will guide our efforts through fiscal year 2015. Operating in a dynamic global economic andbusiness environment, we continue to promote development and innovation with the aim of ensuring our products, services and technologies align with
the needs of stakeholders and meet their expectations.
We continue working actively to address challenges to create new products and businesses that are ahead of the curve. At the same time, we remain
dedicated to guaranteeing the safety of our operations, contributing to protection of the environment, adhering to a strict code of ethics and effectively
managing risks, enabling us to fulfill our responsibilities to society as a global fine chemicals manufacturer.

DIC105: Year 2 in Review
In line with our medium-term management plan, we continue to focus our allocation of management resources on key business domains with theultimate goal of securing sustainable growth.
DIC105 calls for the expansion of three key forward-looking businesses that will drive growth in the years ahead—thin-film transistor liquid crystals (TFT
LCs), pigments for color filters and polyphenylene sulfide (PPS) products. In fiscal year 2014, sales of TFT LCs*1 were hampered by delays in obtaining
customer qualification. In contrast, sales of both green and blue pigments for color filters rose briskly, while sales of PPS products increased favorably,
bolstered by successful efforts to respond to rising demand, particularly for automotive applications. In this environment, consolidated net sales
advanced 5.9% from fiscal year 2013, to ¥830.1 billion. Despite higher sales, operating income declined 6.9%, to ¥41.1 billion, well below our target of¥50.0 billion for the period, owing to a number of factors, including an increase in Japan’s consumption tax and a delay in raising sales prices to reflectincreases in raw materials and fuel prices. In contrast, our debt-to-capital ratio*2 as of December 31, 2014, was 49.8%, as we essentially achieved our
DIC Report 2015

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A Message fromthe President

target for fiscal year 2018 (50%) a full four years ahead of schedule. During the period, we proceeded with efforts to restructure our North Americanand European printing inks businesses—one of the central strategies of DIC105—in line with a roadmap formulated to guide related measures, which
include the closure of certain facilities and the shift of production to other regions. We also continued to invest actively to reinforce our operating
foundation in promising Southeast Asian markets, notably India, thereby laying the groundwork for the future expansion of our operations.

Pressing Ahead with Decisive Efforts
In my view, the most important prerequisite to success in the years ahead will be ensuring the commitment of all DIC Group employees to working as
one to implement the strategies we have set, mindful always of the importance of acting decisively. We are thus promoting the creation of a platform tofacilitate the appropriate allocation of management resources. As part of this effort, in fiscal year 2014 we established printing inks technical centers in
Thailand and the People’s Republic of China (PRC) as well as a PPS technical center in the PRC, while early in fiscal year 2015 we opened a polymer
technical center in Thailand, which will oversee and direct technical aspects of these respective businesses in the Asia–Pacific region. These newfacilities position us to further drive technological development that responds to local market requirements rather than depending on technologies
transferred from Japan, thereby expediting commercialization.
We also continue to advance R&D that emphasizes fostering next-generation businesses, with efforts focusing on such areas as gas barriermaterials for packaging applications, printed electronics*3 materials, cellulose nanofibers, organic–inorganic hybrid materials and heat-dissipating
materials. Going forward, the DIC Group pledges to work as one to press ahead with decisive measures aimed at resolving social imperatives related
to, among others, safety and reliability, the environment, resource conservation and the increasingly important role of information, and at providing
products and services that respond to society’s evolving needs, thereby enabling us to act as a positive force in society.

The DIC Group’s Approach to Sustainability
Having acknowledged the need to pursue sustainable growth in a manner that contributes to sustainability for the global environment and society, as
well as ensures our own sustainable growth, in January 2014 we changed the designation we use across our program from “CSR” to “sustainability.”
We also established a global configuration that classifies our initiatives into four regional groupings: Japan, the Americas and Europe, Greater China—
which for DIC encompasses the PRC, the special administrative region of Hong Kong and Taiwan—and the Asia–Pacific region. To enhance our ability
to effectively manage risks with the potential to hinder our sustainability, we have declared 10 DIC Group sustainability themes and set theme-specificmedium-term targets.
As a manufacturer of fine chemicals with operations around the world, we have a particular responsibility toward operational safety. Accordingly, we
work tirelessly to reinforce our safety infrastructure while maintaining a Groupwide awareness of safety-related issues. As we strive to accelerate theglobal expansion of our operations, we also acknowledge the importance of fostering human resources with the skills to excel on a global stage andof valuing the diversity of our labor force. To this end, we are creating a comprehensive human resources database. We are also promoting measuresdesigned to cultivate a new generation of employees with leadership capabilities and encouraging initiatives such as our Global Challenge Program,which focuses on helping younger employees gain a better understanding of other cultures. In addition, we are taking decisive steps toward thecreation of a framework for ensuring environmental soundness and effective governance across our entire global supply chain.

Targeting Sustainable Growth
The DIC Group provides a wide variety of products that meet the needs of manufacturers in industries ranging from electronics to materials used ineveryday life and the expectations of society. To facilitate the swift expansion and evolution of our businesses, we will continue to take bold steps to
optimize all aspects of our operations from a global perspective. In these and all our efforts, we look forward to the ongoing support and guidance of
our stakeholders.
(Left) Opening ceremony for DIC Zhangjiagang
Chemicals Co., Ltd.’s second production facility(Right) DIC’s booth at Eco-Products 2014 in Tokyo*1 For more information on DIC’s TFT LCs, see page 13.
*2 Debt-to-equity ratio is calculated as Interest-bearing debt / (Interest-bearing debt + Total net assets).
*3 As a next-generation production process for electronic circuits that employs printing technologies, printed electronics continues to attract attention for, among others, its suitability for mass production,ability to reduce fabrication costs and solid environmental credentials.

DIC Report 2015

4

The DIC Group: A Global Powerhouse
Net Sales

Corporate Data

(Billions of yen)

1,000

Registered name:800

Date of foundation:
Date of incorporation:
Paid-in capital:
Number of employees:
Number ofsubsidiaries
and affiliates:

DIC Building, 7-20,
Nihonbashi 3-chome,
Chuo-ku, Tokyo 103-8233,
Japan
February 15, 1908
March 15, 1937
¥96.6 billion
20,411(Nonconsolidated: 3,542)

830.1

705.6

703.8

400

734.3

600

779.0

Corporate headquarters:

200
0’10 ’11’12 ’13 ’14（FY）

Operating Income (Billions of yen)
50
40

)

41.1

40.2

38.5

20

35.0

30

37.2

(

176 Domestic: 32,
Overseas: 144

100

Global Network
DIC has 176 subsidiaries in 63 countries andterritories around the world.

50

EuropeSun Chemical Group and others

Net sales¥201.9 billion

Operating income

5¥8.8 billion

Africa

14

32
China

Europe and Africa

33¥148.9 billion

Operating income¥8.7 billion

Sun Chemical Group and others
Net sales¥144.5 billion
Operating income¥7.3 billionJapan

DIC Corporation, DIC Graphics
Corporation and others

2

16

Net sales¥334.7 billion

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

Operating income¥21.1 billion

Oceania

Central & SouthAmerica

Breakdown of Net Sales by Region

Breakdown of Operating Income by Region

Asia and Oceania

Asia and Oceania

17.9%

North, Central andSouth America

17.4%

North
America
Central andSouth America

Japan

24
South &Southeast Asia
Asia and Oceania’10 ’11 ’12 ’13 ’14（FY）

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

19.0%￥830.1billionNorth, Central andSouth America

Japan

40.3%

15.9%

Europe and Africa

Europe and Africa

24.3%

19.1%

Note: Operating income as used here includes eliminations (approximately ¥3.5 billion).
Accordingly, these percentages do not represent shares of reported operating income.

DIC Report 2015

5

￥41.1
billion

Japan

46.0%

The DIC Group: A Global Powerhouse

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

Printing Inks ▶ Page 12415.7 billion Operating income: ￥17.3 billion

Net sales: ￥Fine Chemicals ▶ Page 13

138.3 billion Operating income: ￥13.8 billion

Net sales: ￥Polymers ▶ Page 14

190.8 billion Operating income: ￥7.8 billion

Net sales: ￥Application Materials ▶ Page 15

123.0 billion Operating income: ￥7.1 billion

Net sales: ￥Application
Materials

14.2%

Share ofNet Sales

Application
Materials

Printing Inks

47.9%

15.4 %

Share of
Operating
Income￥830.1billionPolymers

22.0%

Fine Chemicals

billion17.0%

Note: The aggregates of net sales and operating income by region on page 5 and above do not correspond to reported
net sales and operating income, as the former include income not attributable to reportable segments and eliminations.

DIC Report 2015

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37.6%

￥41.1

Polymers

15.9%

Printing Inks

Fine Chemicals

30.0%

The DIC Group: A Global Powerhouse

Principal Global R&D Sites

Cincinnati(United States)
St. Mary Cray
Technical Centre(United Kingdom)

Qingdao DIC
Finechemicals (PRC)

Central ResearchLaboratories (Japan)

Polymer
Technical Center—
Asia Pacific( Thailand )Printing Inks
Technical Center—
Asia Pacific(Thailand)Eurolab (Germany)

DIC Report 2015

7

Carlstadt(United States)

Messages from Top Executives at Regional Headquarters
Sun Chemical’s sustainability efforts are based on the concept of eco-efficiency as
defined by the World Business Council for Sustainable Development: “the delivery of
economically competitive goods and services that satisfy customers’ needs and bringquality of life, while progressively reducing ecological impact and resource intensity
throughout the life cycle.” In 2015, we will make further progress toward this goal, withthe following key initiatives:- a rigorous development process and analytical tools that guide our choice of materials
and the safety of our products- manufacturing processes that demonstrate environmental excellence through reduced
waste generation, lower energy and water usage, and strong safety performance- meeting local regulatory requirements, working proactively with government, industry
trade groups, and business partners in the value chain to better define, measure, andpromote sustainability, product stewardship*, and risk management.
We are committed to meeting our customers’ needs, while never losing sight of thebusiness essentials: reliable, on-time delivery, consistent product quality, dependable
service and groundbreaking innovation.
Sun Chemical’s Pledge: As the world’s leading producer of inks, pigments andcoatings, we will lead our industry by understanding and minimizing the life cycle
footprint of our products’ impact on the environment.
* Product stewardship is a philosophy that emphasizes reducing the environmental impact of
products over their entire life cycle.

We will make further progress
toward eco-efficiency torealize sustainability.

Sun Chemical Corporation
President and Chief Executive Officer

Rudi Lenz

DIC Report 20158

Messages fromTop Executives at Regional Headquarters

Holding company DIC Asia Pacific Pte Ltd was established in October 2001 as the regional
headquarters for the DIC Group in the Asia– Pacific region*. As of January 2015, we have 73
employees and oversee 17 DIC Group companies. We also function as the front line for theGroup’s principal product segments in the region.
The DIC Group has production bases in six Association of Southeast Asian Nations (ASEAN)
member countries: Indonesia, Singapore, Thailand, the Philippines, Vietnam and Malaysia.
The fastest-growing of these is our base in Indonesia, which employs more than 1,000 local
individuals and pays special attention to conducting its operations in a manner that ensures
harmony with local society.
Against a backdrop of rapid market change, major brand owners are accelerating purchasesof environment-friendly products for use in packaging for food and household goods in
response to heightened consumer awareness of environmental issues in this area. In response,
we are taking decisive steps to cultivate markets for such products, particularly environmentfriendly toluene- and methyl ethyl ketone-free gravure inks for use on flexible packaging, offset
inks for use on paper containers, and water-based inks for use on cardboard cartons.
A key area of focus is environment-friendly PPS compounds, which play a key role in reducing
vehicle weight. Having positioned Malaysia as a principal production base for PPS compounds,
we are actively expanding our presence in four strategically important regional markets, namely,
Thailand, Malaysia, Indonesia and India.
Looking ahead, we will seek to expand our presence in increasingly relevant, promisingmarkets and business areas by reinforcing our operating configuration in South Asia. To
enhance the profitability of our chemicals business in India and promote the expansion of ouroperations elsewhere in the area, including Pakistan and Sri Lanka, we established a regional
representative office, which is headed by an executive officer on assignment. Asia and Oceania
currently accounts for approximately 15% of the DIC Group’s earnings from its businesses.
We will step up efforts to respond to the needs of our customers in key markets with the aim offurther increasing this percentage and of growing together with the communities in which we
operate.
* Asia—excluding Japan and Greater China—and Oceania

With a population that makes it one of the world’s largest markets, the PRC remains highly promising,evidenced by its 7% target for gross domestic product (GDP) growth in the current fiscal year. With theaim of capitalizing on colossal demand in this market, we are taking decisive steps to revamp the DIC
Group’s existing local production and sales networks, as well as to introduce new technologies. Throughsuch efforts, the management and staff of DIC Group companies in the PRC are committed to making a
positive contribution to boosting the Group’s overall operating performance.
In fiscal year 2015, DIC Group companies in Greater China also formulated sustainability activity plans,in line with which we are promoting a variety of related initiatives. As a manufacturer of fine chemicals,
DIC recognizes that its highest priorities in this region must always be the environment, safety, healthand quality. In recent years, authorities in the PRC have cracked down on violations of the country’s
Environmental Protection Law, and at this year’s National People’s Congress the government pledged totoughen environmental measures. The PRC has often been accused of complacency when it comes toenvironmental issues, but as can be seen from the hard line it has taken against air pollution caused byhigh levels of PM2.5 airborne particulates—a major issue for the entire country—it is expected to tighten
regulations substantially in the years ahead. To ensure its continued growth and prosperity in the PRC,
the DIC Group must of course abide by local laws, but more than that it must establish its reputation as anenvironment-friendly organization.
In 2014, regulators in the PRC fined a number of companies in the country, primarily multinationals, as
punishment for violating antitrust laws. These and other incidents have highlighted the importance of ourongoing efforts to enhance understanding of compliance and build awareness within the Group.
Growing the DIC Group’s businesses in the PRC also depends on promoting efforts to ascertain market
needs and to cultivate promising markets in line with two key Group sustainability themes, namely,
Business Models that Respond to Social Imperatives and New Technology Development and Value
Creation.
In recent months, the news has brought us numerous stories about Japanese companies withdrawing
from the PRC for reasons such as rising personnel costs and unfavorable currency rates. In our case,most of the products we manufacture in the PRC are sold to Chinese companies, including subsidiaries
of Japan-based enterprises, so our business model is different from that of companies that are primarily
dependent on exports. Looking ahead, we will accelerate the implementation of our global businessstrategies, which include exploring the investment of management resources to reinforce our ability tomarket our products to customers in the PRC.
DIC Report 20159

We are taking decisive steps to cultivate markets
for environment-friendly products.

DIC Asia Pacific Pte Ltd
Managing Director

Kazunari Sakai

We are working to expand our operations
to respond to evolving market requirements.

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

Hideki Inouchi

The DIC Group’s Business Portfolio
An Efficient Corporate Organization that Leverages DIC Group Strengths
to Respond Swiftly and Accurately to Evolving Social Imperatives
Target Markets and Business Development
The DIC Group has capitalized on its capabilities in organic pigments and synthetic resins, the principal material for printing inks, to build a broad portfolio. Today, the Group
classifies its products in four business segments: Printing Inks, Fine Chemicals, Polymers and Application Materials. Through its Advanced Technology Sales Administrative
Div., Life & Living Sales Administrative Div. and Packaging & Graphics Sales Administrative Div.—three sales administrative divisions organized in line with three key market
categories—and its affiliated companies, the DIC Group works to provide products that respond to the needs of society and its customers.

Electronics

Automobiles

Displays

EnergyPackaging

Advanced
Technologies

Digital printing

Packaging &Graphics

Markets

Fine Chemicals
Application
Materials

Polymers

Polymer design

Basic technologies

Organic molecular design

Coatings

Life &
LivingPrinting Inks
Businesssegments

Livingenvironments

Infrastructurebuilding

Dispersion

Applicability assessment

Optics andcolor(Coating/printing/molding)

The DIC Group’s Basic Technologies

The DIC Group strives constantly to contribute to a materially and spiritually affluent society through the development and provision of environment-friendly technologies andproducts. To this end, the Group is leveraging its basic technologies in the areas of optics and color, organic molecular design, polymer design, dispersion and applicability
assessment to promote the development of products in key target markets.

DIC Report 2015

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The DIC Group’s Business Portfolio

A Matrix-Like Corporate Organization that Leverages Comprehensive Capabilities
With the aim of facilitating concentrated efforts to grow core products, as well as a shift toward market-focused business development, the DIC Group has created a matrixlike corporate organization. This organization centers on six product divisions, which are responsible for spearheading the implementation of global product strategies,
and three market-oriented sales administrative divisions. The DIC Group is confident that this format will enhance agility—enabling it to respond swiftly to evolving social
imperatives—and improve the internal sharing of information, thus underpinning efforts to leverage its comprehensive capabilities.

Product divisions

Categorized at the process chain level; responsible for spearheading theimplementation of global product strategies for each constituent product group

Advanced Technology
Sales Administrative Div.
Optronics materials
Advanced polymers

Application Materials Segment

EnergyAutomobiles

Electronics

Materials for information/communications devices

Automotive materials

Life & Living Sales
Administrative Div.
Coatings
Lifestyle-related materials
Materials for consumables

Livingenvironments

Coatings

Construction andhousing materials

Packaging &Graphics Sales
Administrative Div.
Graphic arts materials
Packaging materials

Packaging

Digital printing

Sales administrative divisions

Organized by core market; charged with providing the distinctive value thatpermeates all DIC Group products to customers and with implementing marketing
initiatives in line with forward-looking themes that reflect the customer’s perspective

DIC Report 2015

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Infrastructurebuilding

Health foods

Functional devices

Printed processed products

Multilayer processed products

Coated plastic products

Processed
Products Div.

Molded plastic products

Films

PPS compounds

High-performance compounds

Coatings

Colorants

Jet inks

Fluorochemicals

LiquidSolidCompounds Compounds
Product Div. Product Div.

Polyurethane resins

UV-curable resins

Specialty fire retardants

Epoxy resins

Polystyrene

Displays

Processed unsaturated
polyester resin products

General polymers for
low-temperature applications

Pigments

General polymers forhigh-temperature applications

Polymers
Product Div.

Alkylphenols

Fine
Chemicals
Product Div.

Functional additives

Printing
Inks
Product Div.

LC materials

Polymers Segment

News inks

Fine Chemicals
Segment

Liquid inks

Printing Inks
Segment

Offset inks

Business segments

The DIC Group’s Business Portfolio

Printing Inks

Printing Inks

A stable businesssince the startThis segment focuses on printing inks, DIC’s
mainstay business since its establishment.
A global market leader, DIC boasts an extensive
product portfolio ranging from publishing inks toinks and adhesives for packaging, enabling it torespond to the needs of customers worldwide.

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

Outstanding color reproduction,
reduced energy consumption
DAICURE HR series(High-sensitivity UV-curable offset inks)

DAICURE HR offset inks contain no volatile organic
compounds (VOCs) and facilitate high-speed drying,properties that help improve working environments
and workability and that continue to support market
expansion. Recent years have seen a sharp increasein the popularity of high-sensitivity ultraviolet (UV)-curable
offset inks, which facilitate the use of low-watt orlight-emitting diode (LED) lamps in UV curingsystems, thereby contributing to the reduction ofenergy used. As well as suitability for use with
low-power UV printers, DIC’s innovative DAICURE
HR high-sensitivity UV-curable offset inks deliver
outstanding color reproduction, thus responding to
the needs of customers seeking to switch fromprinting with oil-based inks to UV-curable printing.

Ensuring safety for food and the environment
FINART series(Gravure inks for food packaging)

In recent years, growing concern for food safety and increased awareness of environmental issues has
hastened demand for the reduction or elimination of solvents in food packaging materials. With FINART,DIC has developed a series of gravure inks for food packaging that combines consideration for foodsafety and the environment with the superb image quality and suitability for high-speed printing
demanded of gravure inks. In addition to conforming to the Japan Printing Ink Makers Association’s
voluntary regulations concerning the use of chemical substances in printing inks, theseenvironment-friendly inks, which balance superior safety with excellent printability, also comply with foodpackaging regulations in Europe.

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The DIC Group’s Business Portfolio

Fine Chemicals

Fine Chemicals

Optronics materials and otherhigh-value-added products
Products in this segment include a wide variety
of materials indispensible to digital devices,
including LC materials and organic pigments forcolor filters, which are expected to drive growthfor DIC in the years ahead.

Fine chemicals
Organic pigments
Special effect pigments
LC materials
Alkylphenols
Metal carboxylates
Sulphur chemicals (lubricant additives)

A marked increase in brightness andreduced LCD energy consumption
G58 series(Green pigments for color filters)

In addition to pigments for printing inks and coatings, DIC—the world’s leading manufacturer of organic pigments interms of market share—produces high-performance
pigments for color filters used in LCDs. In manufacturing
its G58 series of green pigments for color filters, DIC
defied conventional wisdom by using zinc, rather thancopper, as the central metal in the chemical composition,
thereby achieving a marked increase in brightness.
The highest-grade product in the G58 series,
FASTOGEN GREEN A310‚ is particularly noted for its
exceptional brightness and contrast. FASTOGEN GREEN
A310 has been adopted widely for use in LCDs with LED
backlights—the dominant format for LCDs used in
televisions and smartphones—contributing to improved
picture quality and reduced energy consumption.

Responding to the evolution of LCDs
TFT LCs

TFT LCs demand sophisticated expertise in molecular design, as well as advanced technologies forsynthesis, mixing and the removal of minute impurities. DIC is one of only a few companies in the world
capable of manufacturing TFT LCs. The ability of DIC’s TFT LCs to satisfy customers’ needs for higher
brightness, faster response times and greater long-term reliability is evidenced by the fact that they
have been adopted for use by liquid crystal display (LCD) manufacturers worldwide. DIC continues tosee sales of these products expand, particularly in the PRC and elsewhere in Asia. In addition to
responding to customer needs arising from demand for larger LCD television screens and higher picture
quality, DIC is promoting the production of TFT LCs for use in smartphone and tablet computer displays.

DIC Report 2015

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The DIC Group’s Business Portfolio

Polymers

Polymers

DIC’s second core business
Capitalizing on DIC’s world-class technologies
and know-how, this segment provides synthetic
resins and resin-related products to a wide arrayof industries.

Polymers
Acrylic resins
Alkyd resins
Amino resins
Epoxy resins
Fluorochemicals
Methacrylate resins
Phenolic resins
Plasticizers
Polyester resins
Polystyrene
Polyurethane resins
Processed sheet molding compounds (SMCs)
and bulk molding compounds (BMCs)
Unsaturated polyester resins
UV-curable resins
Waterborne resins

Shielding houses and otherstructures from rain and air
pollution
CERANATE series(Waterborne hybrid resins for coatings)

Coatings for housing, public structures, iron bridges,
roads, automobiles and other objects must provide
protection against rain and UV rays, as well as oily or
acidic particulates from vehicle and factory emissions. In
response, DIC has developed the CERANATE series ofwaterborne hybrid acrylic–polysiloxilane (organic–inorganic)
resins, which use nanotechnology to control dispersion.
Hybrid molecules fuse together with the evaporation ofmoisture to form an exceptionally durable coating thatboasts superior gloss retention and excellent resistance tooily stains, as well as a self-cleaning capability whereby ituses rainwater to wash off dirt. Demand for CERANATE
resins continues to rise in emerging economies, whereconstruction is still booming.

Exceptional heat resistance facilitates use in precision instruments
EPICLON series(Epoxy resins for electronics substrates)

Epoxy resins are UV-curable synthetic resins that cure when combined with curing agents, achieving
exceptional moldability, heat resistance, electrical insulating properties and adhesive properties. These
resins are used by manufacturers of electronics substrates and in a broad range of other industries.
As Japan’s largest manufacturer of epoxy resins, DIC supplies the EPICLON series ofenvironment-friendly, high-performance epoxy resins, which combine outstanding heat and flame
resistance. Applications for EPICLON epoxy resins are diverse and include smartphones andcomputers.

DIC Report 2015

14

The DIC Group’s Business Portfolio

Application Materials

Application Materials

Key applications ofbasic technologies
This segment encompasses a diverse range ofapplied products, including jet inks, engineering
plastics and industrial adhesive tapes, which are
made possible by the integration of DIC’ ssynthesis, dispersion, coating and molding
technologies.

Liquid compounds
Jet inks
Fiber and textile colorants
Artificial leather colorants
Coatings for optical films
UV-curable coatings and bonding adhesives for optical discs
Coatings for building materials
High-performance coatings and adhesive materials
Inks for printed electronics
Solid compounds
PPS compounds
High-performance compounds
Plastic colorants
High-performance optical materials
Coextruded multilayer films

Responding to the rapid
evolution of smartphones

DAITAC WS#84 series(Double-sided adhesive tape for waterproof
mobile communications devices)

Processed products

The DAITAC WS#84 series, one of the first series ofwaterproof tapes to be developed and marketed forwaterproof smartphone construction, qualifies for IPX7,
an international standard for protection against water
ingress, earning it an unrivaled position in this market.
The thin foam substrate of DAITAC WS#84 series’
tapes is soft, with a fine closed pore structure similar tothat of a sponge. The substrate and the adhesive layer
form a single tape that adheres tightly regardless ofminute surface irregularities, thereby preventing waterfrom penetrating. DIC continues to promote thedevelopment of adhesive tapes and other products in
response to the trend toward lighter and moresophisticated mobile communications devices.

Industrial adhesive tapes
Label stock for printing
Hollow-fiber membranes and modules
Magnetic tape and coated sheets
Plastic pallets and containers
Decorative boards and interior housing products
Decorative interior sheets
Health foods

Contributing to the realization of lighter, more fuel-efficient vehicles
DIC.PPS series(PPS compounds)

PPS polymer is an engineering plastic that boasts high resistance to heat—it has a melting point ofapproximately 280ºC—and chemical substances. In addition to delivering outstanding heat and chemical
resistance, PPS compounds in the DIC.PPS series maintain excellent rigidity, strength and electrical insulating
properties, are lighter than iron and can be molded into more complex shapes, as a result of which thesecompounds have found application in components for hybrid, electric and other environment-friendly vehicles asa lighter, high-performance alternative to metal materials. As the world’s leading manufacturer of PPS
compounds in terms of market share, DIC enjoys a solid global presence, with bases in Asia, North America
and Europe.

DIC Report 201515

Special Feature

Developing Innovative Productsthat Address Key Social Imperatives
Climate change, energy, food and disaster prevention are just a few of the urgent issues that the world needs to address.
The DIC Group is leveraging the power of chemistry to provide products that can help resolve such issues and drive social sustainability.

SocialImperatives

Energy conservation

Comfortable lifestyles

Safety / reliability

Improvement of convenience

Highly informationoriented society

Aging society

Reduction of
CO2 emissions

Food loss reduction

3Rs (“reduce, reuse,recycle”)

Reduction of substancesthat harm the environment

Human rights

Adhesive with Oxygen Barrier Properties (PASLIM )Adhesive for packaging film that prevents oxygen permeation and keeps foods fresh longer
Social Imperative ＞

Reduce food loss and conserve packaging resources by realizing more functional packaging materials
Millions of people the world over suffer from malnutrition, yet one-third—approximately 1.3 billion metric tons—of the food produced
globally for human consumption is wasted annually, accordingly to an estimate made by the Food and Agriculture Organization of
the United Nations in its 2011 report. Efforts are being made in many areas to help resolve this paradox, including through the useof high-performance packaging materials to prolong shelf life, thereby minimizing food loss in distribution, retailing and consumption.
Particularly notable among these is flexible plastic film with oxygen barrier properties, which, as its name indicates, keeps oxygen—a
key cause of bacterial growth—away from food. By preventing oxidization, these materials help extend expiration dates.
A key issue with oxygen barrier packaging films is that they are generally made from multiple layers of film that must be laminated
together, which makes manufacturing difficult and discourages market acceptance in many places. Simplifying the laminated structureof such films would thus help reduce both food waste and resource consumption.
1/3 of world’s
food production

Per Capita Food Losses and Waste, at Consumption and
Pre-Consumption Stages, in Different Regions■ Consumption■ Production to retailing(Kg/year)350

1.3
Approximately

300

billion metric tons

250
200

Annual foodlosses

150
100
50
0

EuropeUnited States,
Canada,Oceania

Industrialized
Asia

Sub-SaharanAfricaNorth Africa,
West andCentral Asia

South andSoutheast Asia

Latin
America

Source: Global Food Losses and Food Waste, Food and Agriculture Organization of the United Nations, 2011

DIC Report 201516

Source: Global Food Losses and Food Waste,
Food and Agriculture Organization of the United Nations, 2011

Special Feature

DIC’s Response ＞

An adhesive that prevents oxygen permeation, facilitating the reduction of packaging film weight● DIC has developed an adhesive that can be used instead of oxygen barrier film to minimize food loss

A supplier of diverse, highly functional products, including printing inks, films, adhesives and coatings, in packaging markets around theworld, DIC is working to improve the oxygen barrier properties of food packaging materials with two aims—to prolong the shelf life offood, thereby reducing food loss, and to promote the efficient use of the resources from which such materials are manufactured.
In summer 2013, these efforts led to the development of PASLIM, an adhesive with oxygen barrier properties. DIC realized thisinnovative, multifunctional material by combining a polymer with low oxygen permeability and an inorganic compound filler, thereby
lengthening the distance to the food (the “maze effect ” ). PASLIM thus imparts an oxygen barrier performance equivalent to that ofconventional laminated packaging films, which are several times thicker.

Because it eliminates the need for a conventional oxygen barrier film layer, PASLIM
facilitates the manufacture of dramatically thinner and lighter laminated packaging films.
As well as preventing food deterioration, PASLIM reduces the volume and the cost offilm used, emissions of CO2 during product transport and the amount of packaging film
disposed of post-consumption. DIC estimates overall CO2 emissions attributable to the
production, use and disposal of PASLIM are around 30% lower than for conventional
oxygen barrier films.
The first customer to adopt PASLIM was a livestock farming and processing company
in the PRC, which chose the product for use in packaging for hams and sausages. The
product has also been well received at numerous international packaging exhibitions. DIC
continues to receive inquiries from interested food and packaging companies worldwide.

FillerOxygenPolymer withlow oxygen
permeability

Maze eﬀect : The ﬁller blocks oxygen moleculesfrom passing through, forcing them to change
their path and lengthening the distance to thefood, making it diﬃcult for oxygen to penetrate
the adhesive. This creates an oxygen barriercomparable to that of laminated packaging
ﬁlms, which are considerably thicker.

Examples of Structures of Laminated Oxygen Barrier Films
Structure of conventional laminated packaging film
O2
O2

O2

Structure of packaging film employing PASLIM
O2

O2

O2

O2

Film (nylon, other)

PASLIM

Oxygen barrier film

Film (polypropylene, other)

Adhesive
Cast polypropylene

Superior
oxygen barrier
properties
protect
food

Cross-section of a sliced ham package

舗装を撤去後、

O2

Film (nylon, other)

Adhesive

O2

O2

Packages of sausages employing oxygen barrier adhesive

Conventionallaminated film

塗布された
道路は
キレイ

路の補修工事例

ルト舗装
防水工

Structure of PASLIM

湿潤面
接着剤の

鋼繊維配合
コンクリートのDIC Report 2015
アスファルト舗装
17 他にもこんなところに防水工

Special Feature

KEY PERSON from DIC

We are establishing a business model in the PRC and expanding its application worldwide.
In addition to our usual packaging materials customers, we have proposed a
PASLIM-based food packaging solution directly to a Chinese food manufacturer.
This is a successful example of a solution realized thanks to the provision oftechnical assistance to a local company, which encouraged the company toadopt PASLIM for use in its food packaging. Looking ahead, we plan to apply
this business model worldwide by leveraging DIC’s technologies and networks topropose solutions tailored to market conditions and requirements across various
countries and regions.
Manager in Charge, Adhesives Project

Gen Suehiro

KEY PERSON from DIC

Our goal is to achieve harmony between basic research and applied technology.
In addition to synthesis technologies, which facilitated the creation of a resin withoxygen barrier properties, and dispersion technologies, used to separate out
selected substances from a myriad of fillers, PASLIM harnesses a compounding
technology that imparts superior adhesiveness. Collaboration between the
Cor porate R&D Division and the Technic al Administrative Division was
instrumental in commercializing this well-balanced high-performance adhesive.

Head Researcher, Adhesive Technical Group 1, Adhesives Technical Division

Mutsuhiro Shimoguchi

KEY PERSON from DIC

We are contributing to social sustainability through the enhancement of barrier properties.
SAVE FOOD is a global initiative aimed at promoting sustainability by reducing global
food loss and waste that spearheads efforts involving members from various sectors,
primarily in Europe and North America. Imparting oxygen barrier properties to packaging
film is attracting considerable attention as one solution to the problem of food waste.
We are working to help address this issue by developing products that capitalize on ourpolymer synthesis and other elemental technologies and by leveraging our connections
with converting companies around the world. By further expanding our lineup of oxygen
barrier adhesives and other solutions, we will continue working to contribute to global
sustainability.
Manager in Charge, Packaging & Graphics Marketing Department

DIC Report 201518

Susumu Nishimura

Special Feature

Epoxy Resin and Curing Agent for Infrastructure Renovation (EPICLON with LUCKAMIDE)
Superior adhesiveness, even on damp surfaces, shortens repair times and improves workability
Social Imperative ＞

Address the urgent need to repair aging roads, bridges and other infrastructure elements
Many of Japan’s roads and bridges were built in the 1960s, a period of rapid economic growth for the country. Over the past 50 years,
increasing traffic volume, larger vehicles, the use of deicing agents and other factors have led to the deterioration of such structures.
Despite the exigency of the situation, tight national and local government finances have hindered the progress of renovation, resulting
in an upsurge in road and bridge closures due to safety concerns.
Given these circumstances, countermeasures centered on safe, affordable repair techniques that prolong the useful life of existing
infrastructure are garnering considerable attention. Because such repair works primarily involve roads, railways, bridges and otheroutdoor structures, rainfall and river conditions can cause major delays. Accordingly, the materials used must work well in rainy or
humid environments.
With only five years remaining until the 2020 Summer Olympic and Paralympic Games in Tokyo, infrastructure renovation—including a major
overhaul of Tokyo’s freeway system and the repair or replacement of bridges—is an urgent priority for local governments across the country. At
the same time, there is a growing need worldwide for superior repair agents. This is also true in the United States, where infrastructure decay
has long been an issue, and in the PRC, which will likely face the same challenges in the years ahead.

Bridges: 4,332 in 2011
To reach

The deterioration of Japan’s aging roads will progress dramaticallyin the next 10–20 years

2011

10,612

200
100
0

2001

2006

640

300

2016
2021
Calendar year

Japan’s deterioratingroad infrastructure

400

401

2006

500

74

2001

640 in 2021

600

53

0

2,063

1,178

5,000

20,152

15,000Tunnels: 148 in 2011
To reach

700

148

Number of tunnels

20,00010,00020,152 in 2021

Number of tunnels in use for more than 50 years(national roads and roads managed by four public
highway corporations)

25,000

4,332

Number of bridges

Number of bridges in use for more than 50 years(national roads and roads managed by four public
highway corporations)

2011

2016
2021
Calendar year

Source: Ministry of Land, Infrastructure, Transport and Tourism, and four public highway corporations

Source: Ministry of Land, Infrastructure, Transport and Tourism, and four public highway corporations

Number of structures constructed annually
Number of bridges

12,00010,000The number of superannuatedbridges in Japan isincreasing rapidly.

8,000

60 years since construction

6,000
4,000
2,000
0

1950

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010
Fiscal year

■ Prefectures ■ Ordinance-designated major cities ■ Other cities, wards, towns and villages
Source: Materials on road repairs and renovations prepared by Ministry of Land, Infrastructure, Transport and Tourism (available in Japanese only)

DIC Report 201519

Special Feature

DIC’s Response ＞

A revolutionary curing agent that dramatically improves adhesiveness on damp surfaces● DIC’s new curing agent shortens construction delays due to rain and improves workability

DIC develops and sells diverse materials for various civil engineering repair applications and methods. Drawing on our expertise inthese areas, in June 2014 we responded to the need for solutions to construction delays due to rain by developing an innovative newversion of thermosetting epoxy resin EPICLON with excellent adhesiveness, even on damp surfaces, combined with LUCKAMIDE, arevolutionary new curing agent that cures at ambient temperatures.
For example, repairs involving aging concrete structures usually require the bonding of new concrete. If it rains during this process,work must be suspended until the wet concrete is fully dry. To address this problem, DIC sought not only to develop a new versionof EPICLON, the base material, with enhanced bonding properties but also to improve the water resistance of the curing agent
added to harden the resin. These efforts, which focused on leveraging proprietary polymer design and compounding technologies
to realize a new formulation, led to the development of LUCKAMIDE, which boasts groundbreaking water resistance and cures atambient temperatures, setting it apart from conventional water-resistant epoxy resin curing agents, which must be heated to cure, andfacilitating its use outdoors.
The interaction between EPICLON and LUCKAMIDE results in dramatically increased adhesiveness to damp concrete and improved
workability in rainy or humid environments, reducing project delays and shortening repair times.

Superb water resistance and ambient-temperature curing reduce construction lead times
Otherapplications for
EPICLONwith
LUCKAMIDE

EPICLON with
LUCKAMIDE
helps keep
construction
schedules on
track

Preventing falling concrete

Also effective as an undercoat for sheet materials used toprevent concrete detaching from tunnel interiors

Rainy andhumid
environments
greatly prolong
repair work

In addition to this new epoxy resin and curing agent combination, DIC recently developed DIOVAR, a tough new methacrylate resin
repair material that cures quickly in low-temperature environments and boasts excellent adhesiveness, even on damp surfaces. Thisnew offering improves workability and reduces construction delays in winter and in cold regions.
DIC produces customized resin and curing agent mixes to accommodate regional road standards and diverse construction
techniques, including cylinder injection and spray application, which it supplies to contractors and other customers.

DIC Report 201520

Special Feature

KEY PERSON from DIC

Ambient-temperature curability and superb water resistance underscore
LUCKAMIDE ’s significant potential.
Developing an agent with enhanced water resistance and adhesiveness that
didn’t need heat to cure was a particularly daunting challenge. It was a processof trial and error, but in the end the success of our efforts was immediately
obvious. The resin in which it is used expands smoothly on wet concrete almost
as it if is pushing the water out of the way, at the same time demonstrating strong
adhesiveness. A number of contractors are currently using the resin in trials toverify long-term durability. I am excited about LUCKAMIDE’s potential.
Head Researcher, Polymer Technical Group 1, Polymer Technical Division 1

Tsugio Tomura

KEY PERSON from DIC

We will expand our focus to include global markets after establishinga solid track record in Japan.
We exhaustively customize repair agents to accommodate regional roadstandards and diverse construction techniques. For this reason and others, it isimportant for us to collaborate closely with contractors to encourage the adoptionof these products. There is strong business potential for repair agents thatwork on damp surfaces. After establishing a solid track record in Japan, we willcapitalize on our manufacturing bases in the PRC and the Asia−Pacific region to
begin offering these products in global markets.
Manager of Life & Living Epoxy Sales Department, Coating Materials Sales Division

DIC Report 2015

21

Masanori Suzuki

Special Feature

Firefighting Foam (MEGAFOAM)
Foam extinguishing agent quickly extinguishes fires involving hazardous substances, thereby minimizing damage
Social Imperative ＞

Effectively extinguish dangerous fires at facilities handling hazardous substances
Fires at petrochemical complexes, chemical plants and other facilities handling hazardous substances designated under Japan’s Fire
Service Act have the potential to cause massive damage. In addition to human casualties, such fires can result in the loss of machineryand equipment, and of raw materials and products, the release of environmentally damaging substances and the suspension of
production and resulting disruption of supply chains. Accordingly, it is vital to extinguish such fires as quickly as possible.
Unlike regular structural fires, chemical fires—notably those involving water-insoluble flammable liquid materials such as gasoline
and water-soluble flammable liquid materials such as alcohol—cannot be extinguished by water alone. For such fires, it is imperative
to blanket burning surfaces with a firefighting foam containing a fire extinguishing agent diluted with fresh water or seawater, which
prevents contact with oxygen while cooling the fire. The foam must coat the burning surface quickly without being broken down by theheat and be able to suppress fires involving a variety of chemicals.

Fires at facilities
handling hazardous substances

General facilities

Mobile storage tanks

Oil supply facilities

Indoor storage tanks

Factories

Transport facilities

Number of fires

Outdoor storage tanks

160
140

119

120
100

128

113

fires in 1994

188
fires in 2013

124

103
93

The incidence of fires atfacilities handling hazardous
substances is increasing.

80
60

40

40

30

20

30
2009

30

29

32

29

29

27

22

2010

2011

2012

2013

Source: Fire and Disaster Management Agency report on fires in 2013 involving hazardous substances0

Source: Fire and Disaster Management Agency report on fires in 2013 involving hazardous substances

DIC’s Response ＞

A firefighting foam with a superior extinguishing performance that has earned it the top share of the Japanese market● DIC has developed a firefighting foam with a wide range of applications

Developed in 1982, MEGAFOAM is Japan’s first aqueous film-forming firefighting foam, an innovative product that leverages DIC’s molecular design and mixing
technologies in the area of fluorochemical surfactants. Surfactants form a thin aqueous film at the interface between two materials with hydrophilic and lipophilic
properties, thereby transforming the material surfaces. Common surfactants include soap and shampoo. Aqueous film-forming surfactants lower surface
tension, making it easier to form films and preventing the foam generated from breaking down. Firefighting foams harnesses this capability.
Since its launch, MEGAFOAM has earned an outstanding reputation for its fire extinguishing capabilities. In addition to being adopted by the Japan SelfDefense Forces and fire departments, MEGAFOAM is currently in use at numerous airports, facilities handling hazardous substances, tunnels, undergroundparking lots and other facilities. Owing to the revision of pertinent legislation, corporate sites and areas with floating roof storage tanks the diameter of which
exceed 34 meters are obliged to install large-capacity foam monitor systems. As a consequence, the use of firefighting foam systems by industrial complexes
and fire departments across the country has expanded rapidly. MEGAFOAM is currently the leading firefighting foam in Japan in terms of market share.

DIC Report 201522

剥落防止シートの下

道路は
ヒビだらけ

Special Feature● MEGAFOAM can be adapted to extinguish fires involving

water-soluble flammable liquid materials

Unlike fires involving gasoline and otherwater-insoluble flammable liquid materials,
fires involving water-soluble flammableliquid materials such as alcohol, ketones,
esters and amines are extremely difficult
to put out because firefighting foam reacts
with water and dissolves. In the mid-1980s,
DIC capitalized on its polymer gel formation
technologies to develop a robust foam
structure. This led to the commercialization ofan alcohol-resistant version of MEGAFOAM.
As it is also effective in extinguishing fires
involving gasoline, oil and other waterinsoluble flammable liquid materials, thisversion of MEGAFOAM is particularly prizedby fire departments, which often must deal
with fires involving unspecified materials.

Alcohol-resistant gel foam structure
Fluorochemical surfactant
clings to polymer gel

Gel foamprevents
contact withoxygen while
cooling
the fire

Water-soluble polymer gel

Water-soluble andwater-insoluble flammable liquid materials

Foam does notbreak down or defoam
Fluorochemical surfactant and polymer gelinteract to create a strong barrier

How firefighting foam works
Suffocates the fire by blanketing the burning surface
Suppresses flammable substance evaporation
Prevents contact with oxygen and cools the fire

Cools

Firefighting foam

Suppresses
evaporation

Air

Foam generation

Suffocates
Water
Proportional mixing

Prevents contact
with oxygen

Foaming

Foam is generated by combining air with an aqueous solution comprisinga mix of water and extinguishing agent in fixed proportions.

Applications range from fire trucks to fire extinguishing systems for industrial complexes

Chemical fire engine

Discharge from large-capacity foam water cannon

DIC Report 201523

Fire extinguishing equipment for oil tanks

Special Feature

KEY PERSON from DIC

Easily diluted and resistant to breaking up,
MEGAFOAM combines numerous DIC technologies.
With firefighting foam, you can alter expansion and choose a foam shower, nozzle
or other discharge format according to the nature of the fire to be extinguished.
In addition to its superior fire extinguishing per formance, MEGAFOAM hasgarnered praise for its manageability and suitability for diverse applications,both attributable to foam generating capabilities that reflect our high-precision
polymer design and mixing technologies.

Head Researcher, Polymer Technical Group 10, Polymer Technical Division 2

Jiro Matsuo

KEY PERSON from DIC

DIC’s surfactant technologies are also attracting attention overseas.
A late entrant into the firefighting foam market, DIC took a different approachto market development than existing players. This included collaborating withfire extinguishing equipment manufacturers and focusing on ease of use at firesites. MEGAFOAM’s performance has been proven in various fires and its use atindustrial complexes, airports, tunnels and other facilities continues to expand.
Our proprietary fluorochemical sur factant technologies are also attracting
considerable attention from firefighting foam manufacturers overseas.

General Manager in Charge of Fluorochemical Sales Department, Advanced Polymer Sales Division

DIC Report 201524

Kouichi Jinba

TopicGroundbreaking Sun Chemical Solution Enhances
the Recyclability of Shrink Sleeve-Labeled PET Bottles
The Sun Chemical Group, a core member of the DIC Group, is the leading manufacturer of printing inks
in terms of market share in both the Americas and Europe.
SocialImperative

Shrink wrap is a material made of thermoplastic film that shrinks tightly to conform to the shape ofwhatever it is covering when heat is applied. In recent years, shrink sleeves—printed tube-shaped
shrink wrap for full-coverage labeling of containers—have come into wide use for labelingpolyethylene terephthalate (PET) bottles. Shrink sleeve labels have been extremely successful in terms of marketing andpackage appeal, which has driven up demand, spurring growth in the overall market for shrink wrap products. However,in the United States and Europe, sorting and separation issues have had a significant negative impact on the recyclingof PET bottles. During the recycling process, granulated PET bottles go through a separation tank, where the densityof water is used to remove contamination in the form of non-PET materials, such as caps and labels. Problems arise
because shrink sleeve labels made from common current materials (i.e., PET-G) typically do not separate completely,
causing the recycled PET material to be contaminated, residual label material or discolored by inks bleeding into thewashing or flotation solutions. As a consequence, recycling efficiencies are impacted (lower yields) and/or the resultant
poorer quality recycled PET must be downcycled into carpet fibers and pallet stripping, for example, rather than upcycled
into food-grade recycled PET for new bottles.

Sun Chemical’s
Response

Stockpiles of PET bottles with shrink sleeves

V O I CESun Chemical has addressed this imperative by developing apioneering solution that facilitates the complete separation ofshrink sleeve labels from PET bottles. This solution centers
on a breakthrough de-seamable composition that is applied tothe shrink sleeve, as a result of which it detaches easily andcompletely from the bottle during the full bottle washing stepthat uses a hot caustic solution. Bottles simply emerge fromthe washing process without labels, improving the efficiency
of optical sorting and also sink/float separation. This new deseamable composition is attracting considerable attention
from the entire value chain involved in PET containers as asolution that will improve the quality and efficiency of recycling
and expand applications for recycled PET.

Field Marketing Manager, Sun Chemical Corporationfrom the DIC GroupWe have developed a solution that improves the recyclability of PET bottles.
Sun Chemical has explored numerous ways to improve the recyclability of PET bottles, focusing primarily on the developmentof inks and coatings suitable for use on floatable shrink sleeve label materials, which make it easier to remove contaminantsin the separation tank. However, challenges always remained. Our new de-seamable composition can be applied to shrink
sleeves at the same time they are seamed and as a seaming adhesive using seaming equipment common in industry today.
We are excited about the global potential for this innovative new product.

DIC Report 201525

Jeremy Teachman

The DIC Group’s Sustainability Program
In recent years, the need to achieve sustainability in a manner that takes into account, among others, the environment,
ecosystems and socioeconomic issues, including global warming and the depletion of natural resources, has gained
increased recognition worldwide. The DIC Group launched its corporate social responsibility (CSR) program in fiscal
year 2007, identifying 10 key themes as a framework for its efforts. Having further clarified the overall direction of its
sustainability-related initiatives, effective from fiscal year 2014 the Group changed the designation used across its
program from “CSR” to “sustainability,” which it feels is more appropriate for a globally active corporate entity.

Basic Sustainability Policy
Corporations today are expected to operate in a manner that shows concern for the global environment and conforms
with global business rules. The DIC Group is dedicated to conducting its business while retaining a strong commitment
to five key concepts: preserving safety and health, ensuring fair business practices and respect for human rights,
maintaining harmony with the environment and advancing its protection, managing risks, and creating value for society
through innovation. DIC Group employees will continue working to deliver the value that its stakeholders—including its
customers, suppliers, local communities, shareholders and investors, and employees—expect, showing ingenuity and asense of responsibility. The Group itself will strive to remain an organization that contributes to sustainability for society
and the global environment by capitalizing on its businesses to achieve unfaltering growth, thereby enhancing its own
sustainability.

Sustainability Framework and Themes
To foster concrete CSR measures, in fiscal year 2007 the DIC Group examined social imperatives, the activities of other companies
and key relevant materials, including the results of a survey conducted by the Keizai Doyukai (Japan Association of Corporate
Executives). Based on its findings, and to ensure the compatibility of such measures with its operations, corporate organizationand functions, the Group identified 12 key themes as a framework for implementing its CSR program. Subsequently, the Grouppartially revised these themes in response to changes in the external environment and the progress of its efforts. Today, the Group’s
sustainability framework comprises 10
themes. The Group has introduced aBusiness models focused on social issues
New technology development and value creation
Themes that demonstrate
system whereby these are categorized as
Harmony with the community and contributions to society
unique capabilities (A)basic themes, themes that demonstrate
Communication with stakeholders
unique capabilities and themes that
Core and category-specific themes
ESH and quality
Human resources management
combine elements of the previous
Themes that combine
Supply chain management()()
elementsofAandB
two classifications, and clarified theCompliance
positioning thereof. Each fiscal year, theBasicRisk management
themes (B)Group formulates targets and activity
Information security
plans for each of these themes.

()

Expanding the Scope of Sustainability Initiatives
To guide its efforts to promote sustainability as an integral part of its business activities, the DIC Group formulates
theme-specific medium-term targets in line with its basic sustainability policy and creates annual Group activity plans.
Individual sales and technical administrative divisions, product divisions, business sites and overseas and domestic
DIC Group companies are then charged with pursuing effective sustainability programs by formulating their own annual
activity plans, ensuring that the Group’s basic sustainability policy and targets permeate their organizations and labor
forces and linking sustainability activities to business targets.

DIC Report 2015

26

The DIC Group’s Sustainability Program

System for Promoting Sustainability

Members of the Sustainability Committee

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

Executive officer in charge of the Finance and Accounting Division, Executive officer
in charge of the Corporate Strategy Division, Executive officer in charge of theGeneral Affairs and Legal Division, Executive officers in charge of product segments,
General Manager of the Production Administrative Division, General Manager of
the Technical Administrative Division, General managers of sales administrative
divisions, CEOs of overseas regional headquarters, Corporate auditors○Formulates Groupwide targets and activity plans→ Submits to the Board of Directors○Evaluates sustainability initiatives

Board of Directors

Sustainability Committee

President and CEO

Corporate Communications
Department○Promotes sustainability(coordinates and supports initiatives)○Advances awareness of sustainability○Serves as secretariat for the Sustainability Committee

As of January 2015

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

Sustainability themes

Ensuring DIC Remains a Globally Trusted Corporate Citizen with a Proud Reputation
Leveraging 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 pledged its support for the 10 principles put forth by the United Nations (UN), as well as for the UN’s Millennium
Development Goals (MDGs), and became a signatory to the United Nations Global Compact (UNGC).
Inaugurated in 2000, the UNGC is a voluntary initiative for companies that seek to achieve sustainable development worldwide.
More than 13,000 companies and organizations have pledged their support for the UNGC in the belief that global sustainable
development is possible if companies align their business practices with, and fulfill their social responsibilities in, 10 globally
accepted principles in the areas of human rights, labor, the environment and the prevention of corruption.
Applying the 10 Principles of the
UNGC’s Global Compact
The DIC Group Code of BusinessConduct c onfor ms with the 10
principles of the UNGC. The Group iscapitalizing on its participation in thisprogram to advance its operations
around the world, while at the sametime giving ever-greater consideration
to the environment and human rights,
with the aim of ensuring sustainability
for global society.

10 Principles of the UNGC (official version)
Human rights

LabourEnvironment
Anti-corruption

Principle 1

Businesses should support and respect the protection of internationally proclaimed humanrights; andPrinciple 2

make sure that they are not complicit in human rights abuses.

Principle 3

Businesses should uphold the freedom of association and effective recognition of the right tocollective bargaining;

Principle 4

the elimination of all forms of forced and compulsory labour;

Principle 5

the effective abolition of child labour; andPrinciple 6

the elimination of discrimination in respect of employment and occupation.

Principle 7

Businesses should support a precautionary approach to environmental challenges;

Principle 8

undertake initiatives to promote greater environmental responsibility; andPrinciple 9

encourage the development and diffusion of environmentally friendly technologies.

Principle 10

Businesses should work against corruption in all its forms, including extortion and bribery.

Complying with ISO 26000
The DIC Group operates in a manner that is consistent with ISO 26000, released in November 2010, which provides businesses andorganizations with guidelines for operating in a socially responsible manner.

DIC Report 201527

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 efficientmanagement, while at the same time guaranteeing the appropriate monitoring and assessment of and motivation
for management’s execution of business activities. With the aim of achieving a higher level of trust on the part ofshareholders, customers and other stakeholders and enhancing corporate value, DIC promotes ongoing measures toreinforce its management system and ensure effective monitoring thereof.

Corporate Governance System
A company with internal auditors, DIC maintains a Board of Directors and a Board of Corporate Auditors. As well as
appointing two highly independent outside directors, DIC has instituted an executive officer system, a move aimed at
separating decision making and implementation and thereby accelerating business execution and clarifying responsibilities.
DIC also has a Nomination Committee and a Remuneration Committee, which include the two outside directors, to ensure
objectivity in the nomination and selection of, and determining remuneration for, directors and executive officers. The fourmember Board of Corporate Auditors, which includes two individuals—one a lawyer and the other an accounting scholar—
as outside auditors, liaises with the accounting auditors and the internal auditing department.

System of Internal Control
To ensure fair business practices, the Board of Directors has set a basic policy on internal control that encompasses,
among others, compliance with laws and regulations and DIC’s Articles of Incorporation, risk and information
management and the creation of systems to foster business efficiency. Specific initiatives to date have included
formulating a code of business conduct that encompasses a whistle-blowing system, various risk management initiatives
implemented by the Sustainability Committee, the establishment of various internal rules and monitoring (internal control
audits and environment and safety audits). The Board of Directors also hears annual reports on measures implemented
in line with the policy on internal control.

Corporate Governance Organization

Meeting of Shareholders

Audit

Board of Directors
Nomination Committee

Accounting
audit

President and CEO

Remuneration Committee
Sustainability Committee

Internal Control Department

Board of Corporate Auditors
Accounting auditors

Executive Committee
Sales administrative divisions, product divisions, Production Administrative Division,
Technical Administrative Division, Corporate R&D Division,
headquarters´ administrative divisions, offices

Internal audit

DIC Report 201528

Group companies

Compliance

Basic Themes

Toward Fair and Transparent Corporate Activities
Goals and Achievements of Major Initiatives
Objectives of initiatives

Goals for fiscal years 2014–2015

Achievements in fiscal year 2014

Evaluation

Goals for fiscal year 2015

Raise awareness of compliance.

Complete a Chinese-language versionof the DIC Group Code of BusinessConduct, in addition to the Japaneseand English-language versions, and use
presentations and e-learning to promoteawareness.

Versions of the DIC Group Code of BusinessConduct in multiple other languages werecompleted, and explanatory meetings
were held in Japan and at the majority ofsubsidiaries in the Asia–Pacific region andGreater China.

★★★

Hold explanatory meetings for the DIC
Group Code of Business Conduct inlocal languages and set up an e-learning
system to educate employees about thecode.

Conduct business fairly.

Complete subsidiary director checklists
and promote the use thereof byproviding legal training.

Subsidiary director checklists werecompleted, and legal training pertaining
to the list, as well as to antitrust andanti-corruption legislation, was provided
to executives at overseas subsidiaries.

★★★

Continue to provide legal training
pertaining to antitrust and anticorruption legislation and establish asystem to confirm compliance.

Basic Approach to Compliance
Compliance in the DIC Group encompasses not only obeying laws but also acting in a manner that is in keeping with social norms and the
expectations of customers, communities and other stakeholders. With the aim of ensuring sustainable growth of businesses that are both fair andtransparent, DIC formulated the DIC Group Code of Business Conduct, a unified set of guidelines the adherence to which it considers to be thefoundation of compliance. DIC compels all DIC Group employees to conduct themselves in accordance with the code.

The DIC Group Code of Business Conduct
The DIC Group completed the DIC Group Code of Business Conduct in July 2014 and subsequently distributed it to all DIC Group
employees. The code not only mandates compliance with national laws and international rules but also presents 10 principles essential
to the professional conduct of DIC Group employees.
The DIC Group Code of Business Conduct requires DIC Group employees worldwide to share the Group’s values and commit
themselves to doing what is right, as well as to acting with common sense and an understanding of individual responsibilities, in all
aspects of their work.

Basic Outline of the DIC Group Code of Business Conduct
Principles essential to business practices
1. Your Rights as an Employee: Respect, Dignity, Privacy
2. Environment, Health, and Safety
3. Your Responsibility to Avoid Potential Conflicts Of Interest And To Protect Group Property
4. Anti-Corruption and Anti-Bribery Policy
5. Your Relationships With Governments and Government Officials

6. Your Relationships With Customers, Suppliers, and External Third Parties
7. Money Laundering and Anti-Terrorism
8. Forced Labor, Child Labor, Conflict Minerals
9. Insider Trading
10. Proper Accounting and Internal Control Relating to Financial Reporting

In fiscal year 2014, the DIC Group held 114 explanatory meetings on the DIC Group Code of Business Conduct in Japan and
32 in the PRC, Southeast Asia and other parts of Asia. In Europe and the United States, the Group mainly used e-learning tokeep employees informed about the code. The Group also translated the code into 25 languages to foster understanding among
employees around the world.

DIC Report 2015

29

Compliance

Initiatives to Promote ComplianceIn addition to the DIC Group Code of Business Conduct, the Group promotes compliance through the following initiatives:
1. Provision of training focused on legal issues to improve compliance awarenessFor employees at point of hire, when promoted and before overseas transfers
2. Appointment of compliance officers at all regional headquarters—DIC Corporation (Japan), Sun Chemical Corporation (the Americas andEurope), DIC (China) Co., Ltd. (the PRC) and DIC Asia Pacific Pte Ltd (Asia and Oceania)—to spearhead global compliance efforts
The DIC Group vows that it will not violate the principles of the DIC Group Code of Business Conduct, even if such a violation would
appear to profit the Group. As a corporate citizen, the Group also pledges to respect social norms and act in a sound and sociallyacceptable manner.

Establishing and Operating a Whistle-Blowing System
The DIC Group has established a whistle-blowing system through which one can directly report an issue or question regarding
compliance to the division which is responsible for compliance. Since fiscal year 2014, the Group has maintained whistleblowing hotlines that can handle reports in the languages of more than 160 countries. The Group has also devised strict rules
under this system to protect whistle-blowers from retaliation, and is working to ensure the system functions in a proper manner.
When a report is received, the Group responds swiftly and appropriately, giving due consideration for pertinent laws while
also incorporating internal and external opinions, to promptly identify and correct misconduct and other compliance violations
as quickly as possible.

DIC Group
employees
Japan, other countries/
territories, regionsAsia–Pacific region

Greater China

Sun Chemical
Corporation

Director in charge of compliance, Legal Department
External legal firm
Legal Department
Whistle-Blowing Committee

Whistleblowing
hotlines

Legal Department
Whistle-Blowing Committee
General manager, Legal Department,
CEO, CFO

Antitrust and Anti-Corruption Legislation
The DIC Group has formulated a basic policy to comply with antitrust legislation and made Groupwide efforts to ensure fair businesspractices. The DIC Group Code of Business Conduct includes rules for complying with antitrust legislation and prohibits involvementin bribery or corruption. In fiscal year 2014, the Group held 110 explanatory meetings about antitrust and anti-corruption legislation for
relevant employees to ensure strict compliance with the laws of the countries in which it operates.

DIC Report 2015

30

Risk Management

Basic Themes

Reducing Business Risks and Preventing the Recurrence of Incidents
Goals and Achievements of Major Initiatives
Objective of initiatives

Ensure business continuity
for the DIC Group.

Goals for fiscal years 2014–2015

Achievements in fiscal year 2014

Evaluation

Goals for fiscal year 2015★★

Encourage awareness of the new risk
management policy across the DIC
Group. Explore realistic and effective
ways to operate the risk management
system. Ensure product division BCPsalign with systematic training based ontask force response manuals.

Promote product division-led efforts
to revise/maintain business continuity
plans (BCPs) for main products;
abstract and evaluate potential risks
related to the operating environment,
society, economy and governance; andidentify risks of which the DIC Group
must be mindful.

After evaluating the DIC Group’s risk
management approach and the roleof the Risk Management Conference,
the DIC Group formulated a Group risk
management policy. These developments
were conveyed to Group employees
through the in-house portal site.The Groupalso designated priority risks and began
formulating response measures. The
Group continued to provide support for
Conduct systematic training based on the formulation of BCPs for each productrevised task force response manuals.
division and the deployment thereof.
However, achievements did not extend
to the preparation of task force response
Acting through the Risk Management manuals based on the risk management
Conference, promote the preparation policy or the implementation of planned
and use of task force response manuals training.
by pertinent departments.

Basic Approach to Risk Management
The DIC Group undertakes risk management initiatives with the aim of appropriately and flexibly addressing changes in its operating environment
and the diversification of risks, and of swiftly mitigating damage. The Group recognizes risks in three principal categories: externally caused risks
that are beyond its control, corporate risks that can be prevented and business risks that should be handled by the relevant departments. The Risk
Management Conference works to ensure effective risk management in and an effective division of responsibilities with individual businesses.

Risk Management Policy
The DIC Group first introduced risk management initiatives in 2001 by creating the Compliance Committee and setting up reporting
channels. Following the establishment of the Risk Management Subcommittee in May 2012, the Group undertook initiatives aimed
at responding to serious natural disasters and promoting business continuity management (BCM). Since fiscal year 2014, the Risk
Management Subcommittee has focused its attention on establishing a risk management policy and a risk management system, efforts
that are designed to further enhance corporate value Groupwide. In a bid to ensure the effective and sustainable implementation of
initiatives, in January 2015 the Group introduced a newly formulated risk management policy.

Risk Management Policy❶ Risk management objectives

The DIC Group undertakes risk management initiatives with the aim of appropriately and flexibly addressing changes in the operating environment and the diversification ofrisks and of swiftly mitigating damage.
❷ Definition of risks and risk management

The DIC Group’s definition of risk and risk management is as follows:
1. Risk: All uncertainties that threaten the DIC Group’s sustainability and business goals.
2. Risk management: Initiatives to enhance corporate value by managing all risks to the DIC Group from a Groupwide perspective.
❸ Risk management initiatives

1. The DIC Group comprehensively evaluates all risks based on their potential impact on operations and likelihood of occurring, among others, and prioritizes systematic andeffective responses.
2. The DIC Group constructs and validates risk management systems by repeating the plan–do–check–act (PDCA) cycle.
3. The Risk Management Conference shares responsibilities with the risk management teams of individual businesses to properly deploy risk measures within the DIC
January 2015
Group. The conference regularly reports on its activities to the Sustainability Committee.

DIC Report 2015

31

Risk Management

Risk Management System
The DIC Group risk management system was established to reflect the Group’s new risk management policy. The system reducesrisks by promoting use of the PDCA cycle to implement risk management plans. The Group has positioned fiscal years 2014 and 2015
as the first phase of Groupwide risk management initiatives predicated on the new system. Subsequent phases will also last two years.
The Group has commenced the implementation of initiatives based on the system in Japan and will consider rolling them out globallyif the nature of risks faced warrants doing so. Administrative divisions at DIC’s corporate headquarters in Japan and other divisions/departments, which are organized vertically by function, will independently undertake such initiatives through direct collaboration withpertinent departments.
Risk Management Configuration

December (prior year): A risk survey of product division general managers and other executives is conducted
January (current year): Risk questionnaires are distributed to directors→ The Risk Management Subcommittee creates a risk map
February (current year): The conference determines priority risks and risk ownership→ Risk owners formulate response measures
March (current year): A list of response measures is prepared(an explanation of the list is provided to the Sustainability Committee)

1

2

Framework forconstruction andmaintenance ofsystemNovember (subsequent year): The Risk Management Subcommittee assesses theeffectiveness of response measures

3
Production of risk
management plan

4
Management of
risks

PLAN

5
Assessment ofrisk management
performance

DO

CHECK

February (current year)–November (subsequent year):
Individual response measures are implemented (by risk owners)

Risk management policy
Risk management system
Risk management organization,
rules and manuals

6

Adjustment andimprovement ofrisk management
systemManagement
review

ACT

December (subsequent year): A list of the results of response measures is prepared(submitted by the Risk Management Subcommittee to the
Sustainability Committee)

The DIC Group’s Perspective on Risk
Risk Definition and Risk Owners
Risk categories

The DIC Group recognizes risks
in three principal categories. The
Group manages these risks byclarifying risk owners, that is, thedivisions/departments responsiblefor implementing responses.

Risks that should be dealt with by
relevant departments

Business
activities

These are risks to be considered in the course of
conducting business, including those that affectproduction, development, investment and procurement.

Risks that should be dealt with by
specialized departments
Unlike risks that should be dealt with by relevant
departments, these are risks that affect all Groupbusiness activities and can be addressed at the corporate
level. Examples include risks related to information
management and legal and regulatory compliance.

Corporate risk
management
activities

High

Risk Map

Risks beyond control
These are risks arising from natural events and social
circumstances.

●●

Main risk owners● Product divisions● Production, sales and technicaladministrative divisions● Purchasing departments● Corporate headquarters’
administrative divisions● Corporate planningdepartments● Risk Management Conference● Corporate headquarters’
administrative divisions● Sites

●●
●
●

●●

●

●

Impact

● ●
●●

●

●
● ● ●
●●
● ●

●
●

12 Major Risks for which the Risk Management Conference has Adopted Response Measures

●●
●

●
●●

●
●

● ●
●
● ●

●
●●
● ●●●●

●
●

●

●

●
●●●●●
●

●
●●●
●●

●●

● ●

●

●
●●●
●
●
● ●
●
● ●
●
●
●● ●●●●●● ●●●
●●● ●
●
●
●
●
●
●
●
●
●
●
●
●

A risk map is prepared basedon the aggregated results ofa 100-question risk survey of
executive officers.
The 15 most crucial risks are
identified by the Risk Management
Conference.

1. Currency and interest rate fluctuations 7. Decline in debt ratings
2. Intellectual property
8. Information security
3. Governance of subsidiaries
9. Operations of overseas business units
4. Product liability
10. Significant natural disasters
5. Pandemics
11. Facility-related accidents
6. Economic swings
12. Ability to foster human resources and pass on skills●

Likelihood

High

DIC Report 201532

Information Security

Basic Themes

Initiatives to Ensure Information Security
Goals and Achievements of Major Initiatives
Objective of initiatives

Establish a global information
security framework.

Goals for fiscal years 2014–2015

Achievements in fiscal year 2014

・Regional headquarters in the Asia–Pacificregion and Greater China enforced rules
・Optimize information management
by formulating and enforcing a global
and guidelines.
security policy and guidelines.
・In Japan, antivirus utility upgrades werecompleted and security levels maintained/
・Secure and reinforce information
security by maintaining/enhancing thereinforced thanks to the streamlining andinformation security system.
compulsory implementation of measures
to eliminate computer vulnerabilities.

Evaluation

Goals for fiscal year 2015

・In the Asia–Pacific region and Greater
China, have regional headquarters
deploy rules and guidelines for thesubsidiaries they oversee.
・Identify fits and gaps for basic
information security policies between
the Sun Chemical Group and DIC andconsider ways to deploy policies.
・Maintain/improve rules and guidelines
in Japan by considering revisions andmaking updates to key rules.

★★

Basic Approach to Information Security
The DIC Group has positioned information security as a key
management priority, and established a Basic Policy on Information
Security, which is founded on its recognition that protecting information
assets that belong to or are managed by the Group is essential
to its ability to conduct business. In line with this policy, the Group
formulated management regulations for confidential information,
information management guidelines and individual guidelines. These
were prepared to ensure that individual directors and employees fully
understand the importance of information assets and manage them
responsibly and appropriately as a matter of course, enabling them tooptimize confidential information and make effective use of information
assets. Looking ahead, the Group will pursue further improvements byconducting internal audits and confirming current issues.

Implementation
procedures
Preparationof response
measuresManagement
regulations forconfidential
information

Information
management
guidelines
Individual
guidelines

Further
improvements

Basic
policyBasic Policy
on Information
Security
Internal audits

Globally Maintaining and Enhancing Information Security
Regional headquarters in the Asia–Oceania region*—located in Singapore and the PRC—formulated management regulations forconfidential information and information management guidelines, which were deployed in fiscal year 2014 after being approved by
the Information Security Conference. In fiscal year 2015, subsidiaries overseen by these regional headquarters will enforce theseregulations. The DIC Group will continue to identify fits and gaps between information security policies in Europe and Japan andconsider approaches to global deployment policies. In Japan, DIC will continue to maintain and improve rules and guidelines byreviewing rules for implementation, particularly those pertaining to information and communications technology (ICT)-related systems.
* As used here, the Asia–Oceania region includes China but excludes Japan.

DIC Report 201533

Information Security

Educating about Information Security through Antivirus Utility Upgrades
and Explanatory Meetings
The antivirus utility previously used by DIC Group companies in Japan put the onus on users to install and run remedial programs for
operating systems-related and other vulnerabilities, as a result of which timely implementation was an issue. To prevent exposure totargeted cyber attacks, the Group has introduced a system for connecting safely to in-house networks after scanning for client PC
vulnerabilities. Implementation of the upgrade was made compulsory and procedures for installation and use reduced. To enhance
the security-consciousness of employees, as well as to facilitate a smooth shift to the new system, the Group held 25 explanatory
meetings at 21 locations in Japan, including at headquarters and branch offices, prior to implementation. Both the explanatory
meetings and the security system upgrade were completed successfully.

V O I CE

Corporate IT Director, DIC (China) Co., Ltd.

from the DIC GroupWe are working to improve information security in Greater China.
We are tackling the rapid development of virtualization technology and cloud computing by promoting a network
integration plan in Greater China. We are also deploying the Basic Policy on Information Security, management
regulations for confidential information and information management guidelines at regional subsidiaries with the aimof creating an internal management system that will ensure the security of all information. This is one of several key
medium- to long-term projects and will enable us to develop global and regional information systems that meet ourbusiness needs as well as satisfy Group security requirements.

DIC Report 201534

Tylone Zhou

Environment, Safety and Health (ESH) and Quality

Core and Category-Specific Themes

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

Initiatives to Date
Having established its Principle and Policy for the Environment, Safety and Health in 1992,
DIC pledged to implement the precepts of Responsible Care in 1995. Since reaffirming
its support for Responsible Care management in January 2006 by signing the CEO’s
Declaration of Support for the Responsible Care Global Charter, the Company has promoted
constant improvements. In 2014, DIC renamed its Principle and Policy for the Environment,
Safety and Health the Policy for the Environment, Safety and Health. The name wassubsequently revised to the Environment, Safety and Health Policy.

DIC is a signatory to the International Council of Chemical
Associations’ Responsible Care Global Charter

Environment, Safety and Health Policy
As a responsible corporate citizen and as a company that manufactures and sells chemical substances, DIC recognizes that care for the environment,
safety and health is fundamental to the management of the Company. DIC is committed to the concept of sustainable development in all aspects of its
businesses and contributes to the global environment, including biodiversity, by creating environmentally sound products and technologies.
1. We take responsibility for the environmental, safety and health implications of products throughout their life cycles.
2. We continuously set goals and targets for environmental, safety and health improvements.
3. We comply strictly with laws, regulations and agreements relative to the environment, safety and health. For countries lacking such laws,
we prioritize safe operations and protection of the environment.
4. We systematically provide education and training on the environment, safety and health.
5. We prepare systems and audit internally to benefit the environment, safety and health.
We disclose these policies internally and externally and ask that all DIC Group companies observe them. The abovementioned “safety”
also encompasses security and disaster prevention.

Reviews conductedby management

DIC Report 201535

Improve
ActionContinuous improvements
Do

Implement/
manageResponsible

The DIC Group manages its Responsible Care initiatives in a uniform manner using a management
system comprising eight codes, six of which are mandated by the Japan Responsible CareCouncil (the first six codes listed) and two of which were devised internally (the seventh andeighth codes listed.) In promoting these initiatives, DIC and DIC Group companies make use of
the Group’s ISO 14001-certifed environmental management system and an ISO 9001-certifed
quality management system. In addition to using these two systems, certain overseas Group
companies are also working to secure ISO certification for their occupational health and safety
management systems through ongoing efforts to enhance their Responsible Care capabilities.

Care Initiatives

Applying the PDCA Cycle to Eight Responsible Care Codes

Check

Formulate
plans
Plan

ESH and Quality

1. Environmental protection (continuous reduction of chemical emissions)
2. Process safety and disaster prevention (prevention of fires, explosions and the discharge of chemicals)
3. Occupational safety and health (protection of the safety and health of employees)
4. Chemical and product safety (management of risks associated with chemicals)
5. Safety in logistics (reduction of chemical risks associated with the distribution of chemicals)
6. Dialogue with society (communication with local communities regarding the environment, safety and health)7. Quality management (customer satisfaction) (reinforcement of ability to grasp customer quality expectations and of quality coordination)
8. Compliance (strengthening export security control and detection framework and fostering of officers responsible for chemical substance regulatory information)

Annual Activity Plans
The DIC Group formulates annual Responsible Care activity plans, translating them into English and Chinese. We have declared that
we will push ahead with corporate initiatives that help maintain and enhance society and the environment in keeping with a sloganthat states, “Each employee will grow and help create a healthy environment through Responsible Care activities.”

Initiatives in Fiscal Year 2014
The DIC Group established the following policy for Responsible Care initiatives in fiscal year 2014:• Promote Responsible Care activities across DIC’s global network.
• Establish a safety culture oriented toward “zero accidents.”• Set targets to reduce environmental impact through business activities and openly report performance and achievements.
• Manage chemical substance information in an appropriate manner, providing it to customers and using it in DIC Group activities.
The DIC Group also expanded its management by objectives (MBO) system beyond the parent company and Group companies in Japan toencompass Group companies in other areas. As a result, effective from fiscal year 2015 all Group companies in Japan, Greater China, theAsia–Pacific region, and the Americas and Europe (the Sun Chemical Group) set specific goals for disaster mitigation, occupational safety
and health and environmental protection and determine key initiatives in line with the eight codes of the DIC Group’s Responsible Caremanagement system, enabling the entire global Group to work as one to raise the level of its Responsible Care initiatives.

Framework for
Promoting Responsible Care

Product
divisions

Responsible Care Department

Sales administrative divisions

Implementation

Each year, the DIC Group definespriority issues to address and uses
PDCA cycles in voluntary initiatives
at the business company, plant andresearc h lab orator y levels. T he
Responsible Care Department makes
various efforts to help these activities
to progress well and regularly audits
them to ensure c omplianc e andenhance safety, environmental andquality efforts.

Framework for Promoting Responsible Care

Technical Administrative Division
Production Administrative Division

Persons in charge of
Responsible Care

Production and R&D(plants and R&D centers)

Safe environmental
monitoring

Product divisionquality audits

Environment,
safety and quality groups

Quality audits

Branch and sales
office audits

Responsible Care implementation framework

DIC Report 201536

Responsible Care auditing framework

ESH and Quality

Support for Group Company Initiatives
The Responsible Care Department provides a wide range of support for both domestic and overseas DIC Group companies (a total of 49
business sites), regardless of size, with the aim of enhancing Responsible Care initiatives Groupwide.

Information Disclosure and Dialogue with Stakeholders
The DIC Group strives to increase the transparency of its activities through the active disclosure of information while at the same time
promoting dialogue with stakeholders by, among others, presenting safety- and environment-related data on the DIC website, in reports andthrough other media. The Group also undertakes initiatives to promote communication with society, including through community meetings.

Responsible Care Auditing
Basic Approach
Responsible Care Department specialists with expertise, experience and auditing capabilities regularly visit DIC Group companies
to assess the status of Responsible Care initiatives. In addition, top management ESH audits, which include participation by DIC’s
President and CEO, as well as by senior executives and executive officers, are conducted at multiple sites each year with the goal ofenhancing Responsible Care performance levels across the domestic DIC Group.
Overseas, Responsible Care Department specialists and regional ESH officers assess the progress of efforts at production sites andwork together to enhance the effectiveness of Responsible Care initiatives.

Audits in Fiscal Year 2014
In line with its goal of strengthening Responsible Care management across the DIC Group, in fiscal year 2014 DIC inaugurated a program
whereby responsible care officers audit relevant domestic consolidated Group companies to verify efforts and provide support for
improvement activities. Audits equivalent in level to parent company audits were conducted at two domestic Group companies. DIC will
gradually expand this undertaking to include other Group companies.
Similar efforts are also under way at overseas Group companies. Fiscal year 2014, saw Responsible Care audits conducted at four
companies in Greater China. This process entails target companies conducting self-evaluations using a common checklist. The Responsible
Care Department examines the appropriateness of self-evaluations from a third-party perspective and proposes improvements and theimplementation of more advanced initiatives.

DIC President and CEO Yoshiyuki Nakanishi participates in a fiscal year 2014 top management ESH audit at the
Tohoku plant of DIC Kitanihon Polymer Co., Ltd.

DIC Report 201537

ESH and Quality

Occupational Safety and Health, Security and Disaster Prevention
Goals and Achievements of Major Initiatives
Objectives of initiatives

Goals for fiscal year 2014

Achievements in fiscal year 2014

・Assessments were promoted at domestic
・Continue to promote the improvement
DIC Group companies in line with riskof risk assessment skills.
assessment guidelines.
・Share and make effective use of・Causes of accidents were analyzed andaccident-related information acrossinformation was provided in a timely
Ensure occupational safety and health.
the DIC Group.
manner.
Promote hands-on safety training.
・Establish hands-on safety training as・The Saitama Hands-on Safety Training
a permanent component of employee
Center was opened. The new facility
education and make effective use
provided hands-on safety training for new
thereof across the DIC Group.
recruits.
・An illustrated version of Principles
・Continue the activities of the Safe
of Safe Conduct was produced (forCorporate Climate Cultivation Working
Promote the sharing of information
workplace reading circles establishedGroups.
on safe working environments among
to enhance employee awareness).
DIC Group companies in Japan and ・Share safety information at working
・Various types of safety informationgroup meetings.
overseas.
were exchanged.

・Formulate measures for preventing ・The code framework was reviewed
to facilitate the identification of Yellow
problems during transport and deploy
Card numbers on delivery slips.
across the DIC Group.
Ensure the safe management ofchemical substances during transport.
・Promote safety management in the ・Training based on potential problems
during transport was offered.
transport of chemical substances.

・Greater China: One subsidiary
introduced hands-on safety training.
・Asia–Pacific region: A meeting was・Expand the number of sites offering
held for personnel in charge of safety
hands-on safety training.
at regional Group companies in
Encourage the safety and environmental ・Continue to hold meetings for
February 2014; 16 Group companies
personnel in charge of safety.
management initiatives of Groupparticipated.
companies in the Asia–Pacific region.
・Continue to conduct safety and・Safety and environmental audits
environmental audits.
were conducted at 16 companies in
the PRC, three companies in Taiwan
and eight companies in the Asia–
Pacific region.

Manage safety and environmental data.

・An index was drawn up based onsafety and environmental data
・Collect and analyze data from allcollected from overseas Groupoverseas Group companies.
companies (Greater China and thetoassisttheeffortsofthree
・Continue
Asia–Pacific region, Sun Chemical
subsidiaries in the Asia–Pacific region
Group), and targets were set.
and four subsidiaries in Greater・ E ff o r t s t o a s s i s t t h r e e G r o u p
China designated as being in need ofcompanies in the Asia–Pacific region
special safety-related support.
and four in Greater China positioned
as sites in need of special safetyrelated support continued.

DIC Report 201538

Evaluation

Goals for fiscal year 2015★★★

・Continue to promote the improvementof risk assessment skills.
・Share and make effective use of
accident-related information acrossthe DIC Group.
・Establish hands-on safety training asa permanent component of employee
education and make effective use
thereof across the DIC Group.

★★★

★★★

★★★

★★★

・Continue the activities of the Safe
Corporate Climate Cultivation Working
Groups.
・Share safety information at working
group meetings.

・Formulate measures for preventing
problems during transport and deploy
across the DIC Group.
・Promote safety management in thetransport of chemical substances.

・Expand the number of sites offering
hands-on safety training.
・Continue to hold meetings for personnel
in charge of safety. (Switch from biennial
to annual meetings in Greater China
and the Asia–Pacific region.)・Continue to conduct safety andenvironmental audits and enhance
the competence of ESH coordinators.
・Provide support for autonomous ESH
management efforts.

・Continue to assist the efforts ofsubsidiaries in the Asia–Pacific region
and in Greater China designated as
being in need of special safety-related
support.

ESH and Quality

Occupational Safety and HealthPrioritizing Safe Operations
The DIC Group recognizes that operational safety is fundamental to its operations, as well as a core component of Responsible
Care. Accordingly, the Company undertakes occupational safety and health, security and disaster prevention method measures
to foster a “safety first” philosophy Groupwide and in the mind of every employee.
Because its manufacturing operations span diverse fields, the DIC Group has numerous production processes that use
hazardous and toxic materials and rotating devices, including ones that do not involve chemical reactions. Any accident involving
such materials or devices has the potential to significantly impact society in general and damage the health of the Group andpartner company employees and of local residents.
With the aim of preventing such accidents, the DIC Group places a high priority on reducing risks in the workplace byenhancing awareness of Principles of Safe Conduct and training safety personnel. The Group strives to enhance safety throughefforts to reinforce its safety infrastructure and create a safety-oriented corporate culture.

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

Initiatives in Fiscal Year 2014
❶ Promoting Appropriate Regional Benchmarks

The DIC Group conducts its diverse businesses in accordance with a wide range of national and regional legal systems, working
environments and practices. The risk of accidents and disasters varies from one industry to another because of differences in
the facilities, machineries and raw materials used. For Group companies to work as one to improve occupational safety andhealth, it is therefore crucial to establish appropriate benchmarks for each region (Japan, Greater China, the Asia–Pacific region
and the Americas, and Europe).
In fiscal year 2014, DIC defined accidents, disasters and reporting procedures for each region, as well as gathered and sharedstatistical information related to occupational safety, including employee numbers, working hours, number of accidents leading
to workdays lost, number of accidents not leading to workdays lost, number of accidents involving fires/explosions, workdays
lost, workdays lost before restart of operations, occupational accident frequency rate, occupational accident severity rate, workdays lost per thousand employees and workdays lost per million work hours.
This approach made it possible to objectively compare the operational safety of individual Group companies, establish more
precise targets and facilitate improvement programs to assist overall Group management. The DIC Group has used thesebenchmarks to formulate specific regional targets for fiscal year 2015 and will continue working to improve its performance.

V O I CE

General Manager, Responsible Care Department (as of March 2015)

from the DIC GroupWe are working to create a suitable condition to pursue more ambitious targets.
The ability of Group companies in different countries and operating environments to objectively assess their own activity levels
influences their ability to set new targets and their motivation. For this reason, the establishment of benchmarks based on statistical
data gathered in fiscal year 2014 is particularly significant in that it has ensured consistency between initiatives implemented byindividual Group companies and overall Group objectives and put both Group companies and the parent company firmly on the same
page in terms of seeking to enhance capabilities.
Looking ahead, DIC and regional DIC Group companies will step up collaboration and work to incorporate benchmarks into specificimprovement efforts. This will enhance the effectiveness of occupational safety and health and other Responsible Care initiatives.

DIC Report 201539

Shinichi Irumagawa

ESH and Quality❷ Reducing Risks

By understanding potential risks in production processes, facilities and devices, and the hazards of chemical substances, the DIC Group systematically also
prepared initiatives to prevent accidents and occupational injuries. The Group also creates risk assessment guidelines when deploying new or modified
equipment or changing production processes, informs business sites about the guidelines and conducts training workshops.
In line with its commitment to reduce risks, management has mandated that domestic DIC Group companies and affiliates identify risk assessment targets
and conduct assessments, setting a deadline of three years from the inauguration of this effort in 2014. To ensure a smooth process, the Responsible Care
Department and Production Control Department held 27 Risk Assessment Workshops at 16 sites around Japan for approximately 400 participants. Production
and business sites are formulating implementation plans and providing appropriate training to the individuals responsible for conducting the risk assessments.
❸ Training Skilled Safety Personnel to Predict Risks

The DIC Group regularly educates skilled safety personnel on how to handle chemical substances, using materials such as its Principles of Safe
Conduct and Environment and Safety Guidelines for the R&D Department, as well as safety data sheets (SDSs) and its Occupational Accident Case
Studies database. In recent years, the Group has focused especially on a risk prediction training technique called Kiken Yochi Training (KYT) (“hazard
prediction training”) and on hands-on safety training for employees of Group companies worldwide.
The Group also undertakes initiatives to enhance understanding of the importance of safe workplace conduct at production sites, particularly those inGreater China and the Asia–Pacific region. Local personnel have voluntarily translated Principles of Safe Conduct, as a result of which the document is
now available in English, Chinese, Korean and Malay.
KYT is a constructive way to further increase safety awareness. Domestic DIC Group companies use the technique extensively, and the Group is
working to accelerate its deployment in Greater China and the Asia–Pacific region.
❹ Promoting Hands-On Safety Training

Hands-on safety training is an effective alternative to classroom-based learning that uses actual equipment to simulate potential risks in the workplace,thereby heightening employees’ awareness of the importance of proper safety. The DIC Group initiated a full-fledged hands-on safety training programin 2012. The majority of employees at Group companies in Japan and overseas have taken part in such training, which bases simulations on actual
previous accidents, including those involving being caught in machinery or electrical discharges or fires from static electricity.
In fiscal year 2013, Group units in Japan added five new categories of hands-on training using three types of equipment to the program, whichcenters on a mobile initiative that travels from site to site. In fiscal year 2014, the program focused on preventing fires from static electricity, withadditional equipment introduced in line with this theme.
In light of a high frequency of accidents at domestic production facilities involving young employees with less than three years of experience, in fiscal
year 2014 the DIC Group included two days of safety training and KYT in the training curricula for new employees. As a result, there were no reported
occupational accidents involving new employees for the year.
Number of Hands-On Safety Training Participants in Fiscal Year 2014
DIC

727
(6 sites)

DIC Group (Japan)

DIC Group(including overseas operations)

895

1,419

(23 sites)(29 sites)❺ Top Executives Appear in Posters
Promoting the Principles of Safe Workplace Conduct

In fiscal year 2013, the DIC Group produced posters featuring
the president and CEO of DIC, Yoshiyuki Nakanishi, to highlight
Poster featuring the president of
Poster featuring the general
Poster featuring the president
DIC Decor, Inc. (Japan)
manager of DIC Corporation’sof PT. DIC Graphics (Indonesia)
the importance of safe workplace conduct, underscoring DIC’s
Komaki Plant (Japan)
commitment to reinforcing its safety infrastructure and creating aculture of safety. These posters were prepared in three languages—Japanese, English and Chinese—and hung at production and business sites in all
countries and territories where the DIC Group has operations. In fiscal year 2014, this initiative expanded to include posters featuring Group company
presidents and plant general managers from around the world reminding employees of the importance of putting safety first.

DIC Report 201540

ESH and Quality

Topic 1

The new Saitama Hands-on Safety Training Center and its unique training techniques

In April 2014, DIC opened the Saitama Hands-on Safety Training Center, which is located adjacent to its Saitama Plant in Japan. The facility, which boasts a wide range ofequipment and machines that allow employees to simulate an array of accidents, is used in new employee and skill-specific training programs to heighten safety awareness.
One of the features that both trainees and visitors find surprising at the center is that hands-on safety training does not provide absolute answers. Once trainees
understand the horrible consequences of accidents through simulations, it is up to them to determine the best way to avoid causing or being involved in accidents in their
particular workplaces. This is because DIC believes that safety begins with awareness and that awareness is not something that can be taught, but rather something that
one gains through experience. In keeping with this approach, DIC’s Chiba, Sakai, Hokuriku, Saitama, Kashima and other plants have established their own hands-on safety
training equipment and curriculums with the purpose of fostering a culture of safety.

Entrance to Saitama Hands-on Safety Training Center

New employees presenting case studies

New employees simulating getting caught in a chucking apparatus

DIC is working to increase the number of sites in Japan and overseas that have permanent hands-on safety training facilities. In fiscal year 2013, facilities were establishedat two sites in Greater China (Nantong DIC Color Co., Ltd., a manufacturer of printing inks and organic pigments, and DIC Graphics (Guangzhou) Ltd., which manufactures
printing inks, both in the PRC) and at two sites in the Asia–Pacific region (Taiwan-based DIC Graphics Chia Lung Corp., a manufacturer of printing inks, and DIC Compounds(Malaysia) Sdn. Bhd., which manufactures compounds). In fiscal year 2014, DIC installed hands-on safety training facilities at PT. DIC Graphics in Indonesia, a manufacturerof printing inks, and Changzhou Huari New Material Co., Ltd. in the PRC, which manufactures synthetic resins.
In addition to providing regular hands-on safety training for local DIC Group company employees, these sites provide education for safety instructors. These efforts play a
key role in enhancing safety awareness and encouraging safe workplace practices.

Topic 2

DIC safety officers’ conferences in Greater China and the Asia–Pacific region will be expanded from fiscal year 2015

DIC extends support for safety-related initiatives at overseas Group companies by holding biennial safety officers’ conferences in Greater China and the Asia–
Pacific region, which provide opportunities for DIC Group company safety officers in both regions to discuss issues and share information.
Conference participants exchange views on initiatives in such areas as safety performances, progress in deploying safety management systems, ways toenhance the effectiveness of safety training and education, and environmental protection initiatives. They also take part in hands-on safety training to gain
experience that they can later apply when at their own workplaces.
A total of 24 officers from 16 companies (including participants from Japan) attended the fiscal year 2014 Asia–Pacific region safety officers’ conference, which
was held in Malaysia. In response to robust demand, it was resolved that such conferences would be held annually from fiscal year 2015 forward.
With the introduction of specific numerical targets for safety-related initiatives based on risk assessments in fiscal year 2015, these conferences will also be
expanded to include reporting on the progress of priority items and action plans, the use of self-assessment check sheets, poster sessions introducing goodpractices and theme-specific group discussions, which the Company expects to facilitate more lively debates and a more in-depth exploration of key issues.
The DIC Group will continue to foster human resources with a keen awareness of safety, as well as to create a Groupwide culture of safety, through regionalsafety officers’ conferences, the fundamental goal of which is to enhance the capabilities of Group companies and establish a mechanism for promoting
autonomous, localized Responsible Care initiatives.

Plenary session of the fiscal year 2014 Asia–Pacific region
safety officers’ conference (Malaysia)

Hands-on safety training for participants in the fiscal year 2014
Asia–Pacific region safety officers’ conference

DIC Report 2015

41

Accident analysis training at the Greater China safety officers’
conference in March 2015

ESH and Quality

Status of Occupational Accidents
In fiscal year 2014, the number of occupational accidents at DIC and DIC Group companies in Japan declined, as did the domestic
DART rate*. The number of occupational accidents for the global DIC Group also decreased. These results reflected the thoroughadherence to Principles of Safe Conduct and increased employee safety awareness, both attributable to the implementation of risk
assessments and efforts to reinforce hand-on safety training. (Since fiscal year 2008, the DIC Group has deployed the DART rate, acommon indicator used in various countries, with the aim of improving the effectiveness of its safety initiatives.) For fiscal year 2015, theGroup has formulated specific targets based upon benchmarks set for each region, and will step up efforts to ensure the safety of its
operations around he world.
* The Days Away, Restrictions and Transfers (DART) rate is calculated as N/EH x 200,000.
(N = total days away from work. EH = total annual hours worked by all employees.
The 200,000 hours in the formula represents the equivalent of 100 employees working 40 hours per week for 50 weeks per year.)

Workdays Lost Due to Occupational Accidents in Fiscal Year 2014
(Figures in parentheses are for fiscal year 2013)

DIC
Number of
workdays lost

DIC Group (Japan)0（2）DIC Group (global)

4（6）80（84）

Frequency rate

0.000（0.338） 0.429（0.622）

2.133（ー）Severity rate

0.000（0.001） 0.006（0.018）ー

0.1（3.5）

DART rate

9.6（16.0）

20.3（17.8）

Note: Effective from fiscal year 2014, the scope of “DIC Group (global)” was amended to include
all DIC Group companies worldwide, including those in the Americas and Europe.

Frequency Rate

Severity Rate

(Frequency rate)(Severity rate)
0.15

1.50

1.00

0.10

0.50

0.05

0.00

’08

’09
DIC

’10
JCIA

’11

’12

’13

Overall manufacturing industry’14

Frequency rate: This expresses the frequency of accidents resulting in lost time in a fiscal year,
calculated as the number of deaths or injuries per million work hours.
Frequency rate ＝

Number of occupational deaths or injuries
Total work hours

0.00(Fiscal year)

× 1,000,000

A frequency rate of 1.0 means one occupational accident resulting in workdays lost in one
year at a site with 500 people.

’08

’09
DIC

’10
JCIA

’11

’12

’13

Overall manufacturing industry’14(Fiscal year)

Severity rate: This expresses the number of workdays lost due to occupational accidents per
1,000 work hours.
Severity rate ＝Total number of workdays lost
Total work hours

× 1,000

A severity rate of 0.1 means 100 workdays lost in one year at a site with 500 people.

DIC Report 201542

ESH and Quality

Topic

DIC employee wins JISHA Green Cross Award

Yasuaki Oohira, senior manager of the Responsible Care Department and in charge of environmental andsafety initiatives, received the Green Cross Award from the Japan Industrial Safety and Health Association(JISHA). JISHA bestows the award annually in recognition of individuals and groups who have helped advanceoccupational safety and health over many years and have made noteworthy achievements.
As one of the principal individuals responsible for occupational safety and health at DIC, Mr. Oohira hasdeveloped and deployed safety initiatives entailing full employee participation, spearheaded the formulation
and revision of risk assessment guidelines and promoted hands-on safety training across the DIC Group. Mr.
Oohira also participated in the establishment and promulgation of a safety assessment system for evaluating andenhancing the safety capabilities of industrial sites by the Japan Society for Safety Engineering (JSSE)’s Safety
Competency Enhancement Center. These and other commendable endeavors encouraged the Japan Chemical
Industry Association (JCIA)* to recommend Mr. Oohira for the Green Cross Award.

Mr. Oohira holding his Green Cross Award certificate* JCIA is a general incorporated association. As one of Japan’s major industry organizations, JCIA is a member of the International Council of Chemical Associations (ICCA) andpursues the healthy development of the chemical industry with other chemical-industrial organizations around the world.)

Safe Corporate Climate Cultivation Working Groups
Safe Corporate Climate Cultivation Working Groups comprise personnel in charge ofsafety at plants belonging to DIC and subsidiary DIC Graphics Corporation. These groups
have been active since fiscal year 2010. Members meet regularly to discuss and exchange
proposals regarding safety policies and measures. In fiscal year 2012, these groups
presented recommendations on safety policies and produced warning stickers to enhanceawareness of workplace hazards. In fiscal year 2013, the working groups prepared safety
posters and proposed the reading out of key passages from Principles of Safe Conduct
in the workplace as a measure to enhance employee awareness as part of efforts toreinforce worksite activities.
In fiscal year 2014, the groups produced an illustrated version of the Principles of Safe
Conduct for workplace reading circles with the goal of promoting employee understanding.
In fiscal year 2015, the groups edited the booklet into a tear-off calendar version for
distribution at all workplaces to further strengthen the DIC Group’s culture of safety. Thesematerials will be translated into English and Chinese for use throughout the Group.

Pages from the illustrated version of Principles of Safe Conduct for workplacereading circles

Occupational Health
The DIC Group handles a broad range of chemicals, including specified chemical substances and organic solvents. The Group regularly
carries out working environment measurements, in keeping with rules and guidelines, to safeguard the health of employees working in
related businesses and modifies and improves working conditions as necessary. Occupational health physicians and other experts conduct
specialized health checks and inspect workplaces as part of worker health management.
Initiatives in Fiscal Year 2014
Japanese laws and regulations mandate that companies handling specified chemical substances with the potential to cause serious healthproblems as a result of long-term exposure must maintain appropriate working environments as well as store work and health check records
for 30 years. Companies must also maintain storage space for these records to minimize the risk of paper-based documents going astray or
becoming lost.
In fiscal year 2014, the domestic DIC Group built a centralized data management system comprising an information network linking eachwork site, facilitating the electronic recording and storage of data for each employee and the review of information by supervisors andadministrators. This approach ensures consistent recording formats at each site and helps eliminate the risk of records going astray while
resolving the issue of storage space. Use of the system began at DIC’s Tatebayashi and Komaki plants and at DIC Graphics’ Kansai Plant andwill be expanded to DIC’s Kashima, Chiba and Hokuriku plants, DIC Graphics’ Gunma Plant and other large facilities after briefings.

DIC Report 201543

ESH and Quality

Security and Disaster Prevention
Basic Approach and Organization
Any fire, explosion or leak of hazardous substances from a chemical plant could have a tremendous impact on local residents and the rest of thecommunity and damage the health of employees, including those of partner companies.
In addition to establishing a security management system to prevent such accidents, the DIC Group operates and maintains its facilities in line withpertinent laws and regulations. The Group regularly conducts emergency drills and has earthquake and other response measures in place.
DIC also undertakes risk assessments to ensure its ability to construct safe production facilities. In 2013, the Group formulated the DIC Process Risk
Management (PRM) Guidelines*, which consist of four assessment techniques and implementation timetables for each. The Group uses these tools to
conduct regular risk assessments at each of its sites.
* The DIC PRM Guidelines outline timetables and implementation frameworks for assessing the handling of chemical substances, production processes, production formulas,machinery and work practices with the aim of comprehensively identifying and steadily reducing risks associated with production and R&D processes.

Conceptual Illustration of DIC’s Safety Infrastructure

Facility Safety Assessment

Production facility
safety information❶ Assessment Procedures

DIC Group production facilities have a vast array of equipment, ranging fromunits where chemical reactions are conducted to machine presses and otherprocessing equipment. When modifying processes or upgrading/replacing
equipment, safety is assessed at every stage from process design andconstruction through to operation, maintenance and final disposal, in line withrisk assessment guidelines for reaction processes and for equipment andfacilities, to ensure higher safety levels for new processes and facilities.

Safe design
Process risk
management

Operation

MaintenanceManagementof change

Construction

Disaster and accident
predictions and responses

Education❷ Accident and Disaster Analysis and Timely Information

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

A company’s safety competency can be defined as its ability to maintain safety levels at its various sites. DIC’s safety assessment system
encompasses questions about safety infrastructure (technical considerations) and the Company’s culture of safety (operation and management oforganizational culture). DIC introduced this system in fiscal year 2013 as a means of objectively evaluating and enhancing its safety capabilities. Thissystem was developed by the Japan Society for Safety Engineering (JSSE), and is a common benchmark for engineers in the petrochemicals industry.
The system is currently used by the 19 major corporations in Japan that jointly established the Safety Competency Enhancement Center.
In fiscal year 2013, the DIC Group upgraded the system after testing, and in fiscal year 2014 voluntary safety assessments were conducted at the Hokuriku,
Yokkaichi and Kashima plants. The Kashima Plant underwent a third-party assessment by an evaluator from the Safety Competency Enhancement Center.
The plant formulated an improvement proposal based on the results, reflecting the contents in its activities policy for fiscal year 2015.

V O I CE

Senior Manager of the Responsible Care Department

from the DIC GroupI look forward to drawing on DIC’s expertise in improving safety competency to assist companies in other industries.
As a supporting member of JSSE’s Safety Competency Enhancement Center, DIC has participated in the establishment andpromulgation of a safety competency assessment system. This focused initially on continuous process plants. In 2014, we set
up a working group to create a safety assessment competency system for processing plants. I am in charge of this working
group and am involved closely in planning and development.
We have recently received plant safety competency assessment requests from companies in industries outside thechemicals arena. I am happy to be able to draw on the expertise we have accumulated to help reinforce the safety
infrastructures and safety cultures of companies in other industries.

DIC Report 201544

Yasuaki Oohira

ESH and Quality

Emergency Response Drills

DIC augments daily security patrols and periodic equipment checks with regular emergency response drills, especially at
production sites in Japan and overseas, to ensure that it is prepared in the event of an emergency situation.

Topic

Comprehensive disaster drill with Hokuriku Plant neighborhood

On June 11, 2014, DIC’s Hokuriku Plant, in Ishikawa Prefecture, held a large comprehensive disaster drill with thefire prevention and safety association and the fire department of the city of Hakusan–Nonoichi. The 50 participants
included members of the plant’s firefighting team and of the fire departments of neighboring companies.
The scenario for the drill was that a hazardous substance container in front of a multilevel storage facility had
fallen over as a result of a strong earthquake and caught fire. One part of the drill involved the plant’s in-house
firefighting squad and the local fire department mobilizing to rescue the injured individuals and fight the fire. The
other part, which involved petroleum being set alight, enabled participants from the local fire prevention and safety
association to experience heat, flames and smoke firsthand and practice using firefighting agents.
The event served to remind employees of the importance of preventing accidents and disasters and maintaining
operational safety and of its fundamental goal of achieving zero accidents.

Fire department in action

Practice in the use of firefighting foam

In-house firefighting squad

Safety Management in Logistics
The DIC Group commissions logistics firms to transport its
chemical products. In Japan, these firms use containers thatcomply with the Fire Service Act and other transportation
laws, as well as with related United Nations’ standards.
The Group supplies information needed to display labels
complying with GHS*1 as well as provides SDSs, andother documentation to ensure safe shipping in Japan andoverseas. DIC endeavors to maintain and enhance safety
by requiring transport personnel to carry Yellow Cards*2 toensure proper responses in the event of an emergency andby meeting monthly with representatives from logistics firms
to discuss safety and transportation quality.

Yellow Card carried by transport personnel*1 GHS: Globally Harmonized System of Classification and Labelling of Chemicals*2 Yellow Cards are par t of activities recommended by JCIA . The cards contain
information about the right actions to take if an accident occurs and provides contact
details to ensure proper responses by transportation companies, firefighters andpolice officers if an accident occurs during the transport of chemical substances.
Transport personnel must carry these cards at all times.

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Preventing Global Warming
Goals and Achievements of Major Initiatives
Objectives of initiatives

Goals for fiscal year 2014

Achievements in fiscal year 2014

DIC Group (Japan)
DIC Group (Japan)
・Reduce energy consumption per unit ・Energy consumption per unit ofof production 1% from the fiscal year
Promote the prevention of global
production declined 3.4%.
2013 level.
warming and advance energy-saving
initiatives.
・Reduce CO 2 emissions 1% from the ・CO 2 emissions fell 9.1%.
fiscal year 2013 level.
DIC Group (Japan)
DIC Group (Japan)
・Promote modal shift and improve ・E n e r g y c o n s u m e d p e r u n i t o fReduce emissions of greenhouse gases
transport efficiency with the aim of
production declined 5.0%.
during transport.
reducing energy consumed per unit ofproduction.
・CO 2 emissions from logistics were
down 5.2%.
・Reduce CO 2 emissions from logistics.

Evaluation
★★★

★★★

★★★
★★★

Goals for fiscal year 2015
DIC Group (Japan)
・Reduce energy consumption per unitof production 1% from the fiscal year
2014 level.
・Reduce CO 2 emissions 1% from thefiscal year 2014 level.
DIC Group (Japan)
・Promote modal shift and improvetransport efficiency with the aim of
reducing energy consumed per unit ofproduction.
・Reduce CO 2 emissions from logistics.

Note; Effective from fiscal year 2014, CO 2 emissions include emissions from non-energy sources (11,566 tons in fiscal year 2014)

Basic Approach
Climate change, a principal cause of which is global warming, is an increasingly pressing issue for the entire world. The Intergovernmental
Panel on Climate Change (IPCC), a leading scientific body dedicated to the assessment of climate change, continues to urge its member
countries to reinforce and expand the application of climate change countermeasures. With 19 of its 33 Group sites in Japan accorded
Designated Energy Management Factory status, DIC has included initiatives aimed at reducing greenhouse gas emissions from its
production facilities in its annual sustainability policy for fiscal year 2015. The Company is currently implementing initiatives to reduce its
consumption of energy—and thus its emissions of CO2 —as well as promoting the active disclosure of related data.
1. Undertake energy-saving initiatives Groupwide.
2. Deploy effective strategies through working group activities.
3. Operate energy-saving cogeneration systems (combined heat and power generating facilities).
4. Employ energy from renewable resources (biomass, wind power and solar power) at suitable sites.
In fiscal year 2013, DIC inaugurated conservation efforts at overseas DIC Group companies, which consume approximately 1.6 times
more energy than their domestic counterparts.

Framework for Promoting Energy-Saving Initiatives
DIC and DIC Group companies in Japan have established energy-saving promotion committees at each of their production andR&D sites. Committee activities include confirming the progress of initiatives, engaging in discussions and conducting patrols.
DIC has also set up an energy-saving working group comprising members chosen from each production facility that fosters
the exchange of information, research pertaining to new items and the Groupwide implementation of effective measures. This
combination of site- and Group-level initiatives forms the framework under which the DIC Group works to reduce CO 2 emissions.
DIC Group companies overseas promote a wide range of independent energy-saving initiatives. The Production Control
Department provides support on multiple fronts, including the deployment of management systems and the training of
employees.

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ESH and Quality

Principal Initiatives in Fiscal Year 2014
❶ Energy Consumption and CO 2 Emissions by the Global DIC GroupThe DIC Group views energy consumption per ton of production as an important measure of its energy efficiency. Against a 7.3%
decrease in global production volume, the volume of energy consumed by the global DIC Group in fiscal year 2014, calculated
in kiloliters of crude oil, amounted to 288,452 kiloliters, down 10.5% from 322,210 kiloliters in the preceding fiscal year, whileenergy consumption per unit of production declined 3.4%, to 148.4 liters/ton, from 153.7 liters/ton in fiscal year 2013.
The Group also succeeded in reducing its global CO 2 emissions a remarkable 9.1% in fiscal year 2014, to 657,457 tons, from722,955 tons in fiscal year 2013. This achievement was attributable to energy conversion and the installation of energy-efficientequipment at production facilities and other business sites worldwide, as well as to process improvements and the steady
implementation of energy-saving initiatives.

Global CO2 Emissions in Fiscal Year 2014

CO2 Emissions in Fiscal Year 2014 by Region

Declines in key indicators:
Results of energy-saving initiatives implemented by the DIC Group
Globalproduction volume

Energyconsumption- 7.3％ -10.5％

Greater China

9%

Energy consumption perunit of production

-3.4％

Down

Asia–PacificregionBreakdown of
CO 2 Emissions in
Fiscal Year
2014

18%

9.1％

Americasand Europe

39%

34%

from fiscal year 2013

722,955

Japan

657,457

tons

tons

Fiscal year 2013

Fiscal year 2014

Global CO2 Emissions and Change from Base Year（Tons of CO2）
800,000

100

100

112

102

700,000

（％）
120
100

600,00080

500,000
400,000

60

300,000

40

200,000(Kiloliter crude oil equivalent)-9.1%

350,000

’ 11

’ 12

’ 13

’ 14

100

98

103

300,000

fromfiscal year 2013

（％）

100

100

200,000
150,000

120
110

250,000

149

liters/ton

145

liters/ton

154

liters/ton

148

liters/ton

90
80

CO2 emissions

100,000

Change from base year

50,000

70

0

60

20

100,000
0

Global Energy Consumption and Change
in Energy Consumption Per Unit of Production from Base Year

0

’ 11

’ 12

’ 13

’ 14

Note: Energy consumption per unit of production (liters per ton) is
calculated as energy consumption divided by production volume

DIC Report 201547

-10.5%
fromfiscal year 2013

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

ESH and Quality❷ Energy Consumption and CO 2 Emissions by the DIC Group in Japan

In fiscal year 2014, the DIC Group in Japan—which encompasses the 33 business sites of DIC and its domestic Group companies—reported
a 3.6% decrease in production volume and a 1.4% decline in energy consumption. Nonetheless, energy consumption per unit of productionrose 2.3%. The principal factor behind this result was a deterioration of energy efficiency resulting from high-mix/low-volume production andan increase in base load resulting from the installation of a clean room to further enhance product quality. In contrast, CO2 emissions were up
4.4%, owing to the inclusion from fiscal year 2014 of emissions from non-energy sources (incinerators). If CO 2 emissions had been calculatedon the same basis as in fiscal year 2013, the Group would have reported a 0.3% decline.
DIC Group in Japan

CO2 Emissions and Change
from Base Year（Tons of CO2 ）400,000

100 101+4.4%
fromfiscal year 2013

96
86

350,000

83

80

79

300,000

70

Energy Consumption and Change in Energy
Consumption Per Unit of
Production from Base Year

78

75

+2.3%

（％）
120

(Kiloliter crude oil equivalent)
180,000

100

160,00080

250,000

101

114

104
104

106

109

（％）

120

106

140,000

104

107

110
100

120,000

60

200,000

100

fromfiscal year 2013

100,000

150,000

40
20

60,000040,000’14 (Fiscal year)

20,00050,0000’05’06

CO2 emissions

’07

’08

’09

’10

’11

Reference: Adjusted CO2 emissions

’12

’13

90

80,000100,000

80

116

121

liters/ton

123

liters/tonliters/ton’13’14 (Fiscal year)

60

0Change from base year’05

* Adjusted CO 2 emissions (Emissions attributable to electric power use recalculatedusing a fixed CO 2 emissions factor for electric power purchased.)

70

’06

Energy consumption

’07

’08

’09

’10

’11

’12

Change in energy consumption per unit of production from base year

Principal Reason for Increase in Energy Consumption Per Unit of Production

The increase in energy consumption per unit of production by the DIC Group in Japan in fiscal year 2014 was primarily attributable to the startof operations by a new production facility for PPS neat polymer (an engineering plastic) at the Kashima Plant in Japan.

Factors Contributing to Increase in CO 2 Emissions by the DIC Group in Japan in Fiscal Year 2014
FactorImpact on CO2emissions (tons)

Change in weight*(percentage points)

Impact of energy-saving initiatives-6,883-2.8

Changes in business portfolio-3,250

Increase in operation of facilities poweredby renewable energy at the Kashima Plant

-1.3
-1.3

-3,184Notes
The implementation of 488 energy-saving initiatives accounted
for a 2,677 kl reduction in energy consumption.
Changes were due to, among others,
DIC taking over the business of an affiliate.
Heat and power generated using renewable energy (biomass boilers,
wind power) increased 11% from fiscal year 2013, to 14,919 kl.

-0.7

Reduction of production volume-1,740

Others

5,990

2.5

8,148

3.3

Energy consumption per unit of production at the new facility is high.

4.7

CO2 emissions from non-energy sources were included for the Chiba Plant only in fiscal year 2013.
In fiscal year 2014, such emissions were included for all domestic plants.

Start of full-scale operations at new PPS neat polymer
production facility at the Kashima Plant
Inclusion of CO2 emissions from non-energy
sources from fiscal year 2014
Total

11,566

4.4

10,648* Increase or decrease in percentage of total CO 2 emissions from fiscal year 2013

DIC Report 201548

ESH and Quality❸ Energy-Saving Initiatives in Japan

Results of Energy-Saving Initiatives in Japan in Fiscal Year 2014

The DIC Group promoted a number of highly successful energy-saving
initiatives in Japan in fiscal year 2014. A total of 488 initiatives were
implemented at domestic business sites, namely, plants and R&D sites. These
included integrating production and replacing waste-heat boilers to reduce
consumption of thermal energy, reconsidering refrigerants used in and theoperating hours of air conditioning equipment to lower consumption of electric
power, ensuring the efficient operation of air compressors and replacing
existing lighting fixtures with LED lights to reduce the use of electricity. The
Group also switched to clean energy, that is, to town gas from heavy oil, to fuelboilers at the Kashima Plant. These initiatives reduced energy consumption by
2,677 kiloliters (crude oil equivalent) (associated reduction in CO2 emissions:
6,883 tons), equivalent to 13,385 200-liter drums of crude oil, or 2.8% of totalenergy consumption by the DIC Group in Japan in fiscal year 2013.

Number of
initiatives

Reduction in energy
consumption (kl)Reduction in CO2emissions (tons of CO2)

406

2,175

5,859

488

2,677

6,883

DIC Corporation
Domestic DIC Group
companies
Total

82

502

1,024

488 energy-saving initiatives accounted for a reduction in energy consumption
equivalent to 13,385 200-liter drums of crude oil.
488 initiatives

Equivalent toReductionin energy
consumption

200-liter drums of crude oil

13,385

Expanding Application of System to Enhance the Visibility of Energy Consumption

With the aim of optimizing the use of electric power on an individual facility basis, DIC has developed a system thatmeasures, monitors and verifies waste and irregularities in use, thereby enhancing the visibility of energy consumption.
Initially installed at the Hokuriku Plant in 2012, the system—which won the ECCJ Chairman’s Prize at Japan’s 2012
Energy Conservation Grand Prize awards, sponsored by the Energy Conservation Center, Japan (ECCJ)—has since
been rolled out at DIC business sites across Japan. In fiscal year 2014, the system was installed at the Komaki Plant.
To promote the further rationalization of energy use, a system for analyzing consumption during different production
processes was installed on production floor B of the Sakai Plant. This is the third location to receive this system, which
was also installed on production floor V of the Chiba Plant and production floor C of the Kashima Plant in fiscal year 2013.
DIC is also considering installation at the Yokkaichi Plant.
One outcome of efforts to enhance the visibility of energy consumption was an increase in the number of categories of
Scope 3*, in which DIC reports indirect emissions of CO2 , from one (“upstream transportation and distribution”) in fiscal
year 2012 to six (including “capital goods” and “waste generated in operations”) in fiscal year 2013 .
* Scope 3 is the Greenhouse Gas Protocol’s standard for calculating indirect greenhouse gas emissions resulting fromproduction, transport, business travel and commuting, among others, across entire supply chains.

Topic 1

Reducing energy consumption and increasing product quality through training to provide
employees with the tools to continuously improve their work

Having recognized that enhancing the awareness of employees in production and providing them with the tools to continuously improve theirwork are crucial to strengthening front-line capabilities, in 2008 DIC began offering the Kaizen Skill Improvement Training program. This
program—which is structured around four themes, namely, reducing energy consumption, increasing yields, enhancing product quality andrationalizing operation—seeks to foster professionals who can identify and resolve issues on their own initiative. Participants spend one
year participating in initiatives aimed at improving quality control methods and the following year putting their findings into practice. Each
December, achievements are presented at a briefing attended by pertinent plant general managers and directors.
Since 2012, DIC has also provided training for employees who have completed the Kaizen Skill Improvement Training program to equipthem with the leadership and educational skills necessary to serve as instructors for the program. As of the end of fiscal year 2014, a
cumulative total of 332 employees from DIC sites in Japan had completed the Kaizen Skill Improvement Training program, with approximately
20% subsequently going on to earn accreditation as program instructors, adding momentum to energy-saving and other initiatives.

Kaizen Skill Improvement Training

I was reminded of the importance of being able to recognize issues.
I think that the data analysis presented at the briefing was easy to understand and persuasive. We provided explanations from a variety of
unique perspectives and were successful in drawing the audience in. The whole experience of the program reminded me of the importance ofbeing able to recognize issues. I look forward to capitalizing on what I learned to continuously improve my work.
Solid Compounds Production Department, Komaki Plant

DIC Report 2015

49

Kouichi Naito

ESH and Quality

Topic 2New energy-saving features of air conditioning equipment
account for reduction in energy consumption of approximately 20%

Two approaches introduced at production departments’annual R&D presentation attract considerable attention
Revisions to Japan’s Act Concerning the Rational Use of Energy, aimed at leveling demand for electricity, have heightened the need to improvethe energy efficiency of air conditioning equipment, a major cause of rising energy consumption. Personnel at DIC’s Chiba Plant directed theirattention to improving the performance of refrigerants, promoting two highly successful approaches that attracted considerable attention at the R&D
presentation staged by the Company’s production departments every January.

Production departments’ annual R&D presentation❶ Replace R-22 with a green alternative
The first approach involves replacing chlorofluorocarbon R-22, the most commonly used refrigerant for air conditioning equipment, with propane (similar to isobutane), a green refrigerant. Propane offers
considerable benefits, including the fact that it does not deplete the ozone layer and has a lower global warming potential (GWP) than R-22, but its extreme flammability is a major disadvantage. For this reason,
it has traditionally been viewed as unsuitable for chemical production facilities, although inverter technology has facilitated its use in environment-friendly household refrigerators. Having determined that propane
is a viable alternative for certain production sites, in fiscal year 2014 air conditioning equipment using propane instead of R-22 was installed on a trial basis at the Sakai Plant, a move that reduced annual energy
consumption at the facility by 20–30%.
Japan is phasing out the production and use of R-22 and other high GWP chlorofluorocarbons and has set 2020 as its target date for completing this effort. Accordingly, the search is on for green refrigerants suitable foruse in air conditioning equipment. With the completion of verification testing at the Sakai Plant, the Kashima Plant also installed air conditioning equipment using propane instead of R-22 in certain areas.

❷ Increase operating efficiency by eliminating air bubbles
The second approach adopted by personnel at the Chiba Plant was to improve the performanceof existing refrigerants. Air conditioning equipment exploits a process called phase conversion—
the transformation of a liquid to a gas and vice versa—that occurs as a result of the repeatedcompression and expansion of the refrigerant—to cool or heat air. However, the degradationof equipment over time can result in the formation of air bubbles during compression, thereby
hampering the refrigerant’s performance. The Chiba Plant sought to address this issue by
installing an air separator, which isolates and removes air, a move that significantly improved the
air conditioning capacity of the equipment, helping to cut peak electricity demand and accounting
for a 20% reduction in annual electric power consumption at the facility. DIC is confident that theconcurrent promotion of this and the approach described above at domestic production sites willplay a key role in expediting production departments’ efforts to reduce energy consumption.

External unit

Internal unit
Air is removed,
thereby accelerating
the refrigerant’stransformation into a liquid,
resulting in a reductionin the site’s electric power
consumption of
approximately 20%
Air separator
installed
on liquid line

Flow of refrigerant (cooling/heating)❹ Increasing Independent Electric Power Generation through Cogeneration and the Use of Renewable Energy

Increasing Cogeneration System-Based Independent
Electric Power Generation

Conceptual Diagram of Cogeneration System

With the aim of increasing energy efficiency, and as a precaution against
natural disasters, the DIC Group in Japan is promoting the systematic adoptionof cogeneration and the use of renewable energy, that is, energy from sourcesthat are naturally replenished. Cogeneration systems burn fuel to drive turbines,
facilitating the production of electric power and the recovery and reuse of waste
heat (steam and hot water), thereby improving energy efficiency.
The DIC Group currently has cogeneration systems at five domestic plants(Chiba, Shiga, Saitama, Gunma and Tokyo) with a combined maximum
capacity of 19,000 kW. In fiscal year 2014, electric power produced by thesesystems accounted for 14% of the total volume of electric power used by the
DIC Group in Japan. In autumn 2015, DIC will install a gas turbine-powered
cogeneration system at its Kashima Plant with a capacity of 1,700 kWh. DIC
is also considering updating the cogeneration system at its Chiba Plant, whichcurrently has a capacity of 6,000 kW.

Electric power
Waste heat (steam, hot water)

Internal
combustion engine
Fuel

System process
Cooling

Use of waste heat chiller
HeatingNatural gas,
heavy oil, other

Heat exchanger
Hot water supply
Heat exchanger

DIC Report 201550

ESH and Quality

Using Renewable Energy

CO2 Emissions Reductions at the Kashima Plant(January–December 2014)

In Japan, the DIC Group actively promotes the use of energy from renewable sources(biomass, wind power and solar power) at suitable sites. In fiscal year 2014, DIC
dramatically enhanced the generating capacity of biomass boilers (4,000 kW and 30
tons of steam per hour) by improving the quality of the wood chips used to fire boilers
and reinforcing maintenance procedures, which facilitated a significant increase inoperating rates, boosting output of both electric power and steam (waste heat). The
Group also raised operating rates at its two wind power generation facilities (each has agenerating capacity of 2,300 kW). These improvements, together with contributions froma small solar power plant, resulted in an increase in the DIC Group’s renewable energy
output in Japan of 7.9% from fiscal year 2013, while independently generated renewableenergy accounted for 8% of all electric power consumed by the domestic Group. As
a consequence, the Group’s CO2 emissions in calendar year 2014 were down 39,735
tons, or 11%, from calendar year 2013.
Leveraging the biomass boiler management technologies it has developed throughoperation of facilities at its Kashima Plant, in 2016 DIC plans to expand the installation ofsuch boilers to include its Hokuriku Plant, in Ishikawa Prefecture.

Reduction attributable to use ofwood biomass energy-37,109 tonsof CO 2

Reduction attributable touse of wind power

Reduction attributable touse of solar power-2,571tons -55 tonsof CO 2of CO 2

Electric Power Produced through Cogeneration and the Use of Renewable Energy
DIC Group (Japan)

Electric power consumed (a)Electric power produced
through cogeneration (b)Fiscal year 2013

292,637,000 kWh44,268,000 kWh

Fiscal year 2014
Change281,257,000 kWh-11,380,000 kWh-15.1％-14.0％

39,472,000 kWh-4,796,000 kWh- 3.9％

Change (%)( b) as a % of (a)-1.1％- 10.8％

Electric power produced through theuse of renewable energy

fromResultReduction in CO2 emissions(January–December 2014)

Waste heat produced-39,735 tons

+ 13.0％ fiscal year 2013
fromof CO2

Electric Power Used by the DIC Group in Japan by Energy Source(Thousand kWh)Electric power produced
through the use of renewable energy

350,000
300,000

20,938250,000

44,26822,60239,472200,000
150,000

227,430

219,183

Electric power produced
through cogeneration

14%
78%

50,00008%

Purchased
electric power

100,000’ 13’14

Electric power produced through the use of renewable energy
Electric power produced through cogeneration
Purchased electric power

DIC Report 201551(c) as a % of (a)20,938,000 kWh

7.2％

22,602,000 kWh
1,664,000 kWh+ 7.9％

Use of Renewable Energy+ 7.9％ fiscal year 2013

Electric power produced through theuse of renewable energy (c)Breakdown ofElectric Power
Used by the
DIC Group in Japan
in 2014by Energy Source

8.0％+ 0.8％

ESH and Quality

Microreactor: Realizing production processes that lower environmental impact

TopicsTo date, the majority of synthetic chemicals have been produced in batch reactors, where two or more different chemical elements are combined,causing a chemical reaction, and byproducts and impurities are removed. Because heat exchange efficiency is low, heating and cooling requiresignificant amounts of energy. Also, precise thermal control is difficult, as a result of which it is difficult to manage reaction efficiency and quality.
R&D aimed at addressing these challenges opened the way for microreactors, which employ a number of unique processes. With
microreactors, the introduction of raw materials and the reaction and recovery of byproducts and impurities occurs in a continuous flow within
micro fluid channels that deliver superb heat exchange efficiency. In addition to a significant reduction in energy use, microreactors facilitate
precise thermal control—thereby minimizing electric power consumption and greatly improving reaction efficiency and quality—and the reductionof waste. Microreactors also allow reactions and chemical synthesis processes that are unfeasible with batch tank reactors due to safetyconcerns, the benefits of which include shorter lead times for plant construction.
Having recognized the potential of microreactors early on, DIC has promoted extensive R&D aimed at developing a commercially viable unit. In
September 2013, the Company’s Hokuriku Plant deployed a microreactor for use in the production process for fluorinated surfactants, achieving
a significant improvement in reaction efficiency that reduced production time to 1/9 the previous level, thereby reducing energy consumption andessentially eliminating the generation of waste during production.
As an organization engaged in the development and production of a diverse range of chemical compounds, DIC recognizes the importanceof revolutionizing production processes as a way to enhance the quality of its products and lower its impact on the environment. As such, andwith the aim of ensuring its own sustainability, the Company will continue working actively to develop production processes that reduce theenvironmental impact of its operations.

Conventional
Chemical Synthesis
Batch reactor

Chemical Synthesis
Using a Microreactor

Conventional

Microreactor

MixingChemical synthesis
using large plant

Energy-saving

Chemicalelement

A

Highly efficient mixing
in microchannels

Chemicalelement

B

Heating, cooling andprecise thermal control• Heating and cooling requiresignificant time and energy• Precise thermal control is difficult, which
negatively affects reaction efficiency and selectivity• Capital investment requirements are substantial

Synthetic chemical• Heating and cooling require very little energy• Precise thermal control is possible,
facilitating selective organic synthesis• Capital investment requirements are minimal

Microreactor at DIC’s Hokuriku Plant❺ Energy Consumption and CO2 Emissions by the DIC Group Overseas

In fiscal year 2014, energy consumption by DIC Group companies overseas amounted to 176,600 kiloliters, calculated in kiloliters of crudeoil, a decrease of 15.4%, while CO2 emissions per unit of production were 402,343 metric tons, down 15.9%. Since changes in reporting
boundaries accounted for a decline of approximately 5% in each category, the principal factor behind these significant reductions was anincrease in the energy efficiency of production activities—underscored by an improvement in energy consumption per unit of production, adecrease of 5.7%—attributable to Groupwide efforts to step up energy-saving initiatives and efficiency-oriented facility updates.
Energy Consumption Per Unit of Production andChange in Energy Consumption from Base Year

CO2 Emissions and Change from Base Year(Tons of CO2)

123600,000
500,000

100

107

104

（％）
140

100

400,000-16%(Kiloliter crude oil equivalent)

250,000

fromfiscal year 2013

200,000

80

300,000

60

200,000

40

100,000
0

120

20

’11

’12

’13

’14

100

99

110

（％）

104

CO2 emissions

100,000
50,000

0

0(Fiscal year)

DIC Report 2015

52

110
100

150,000
Change in CO2 emissions
from base year

120

-6%

from
fiscal year 2013

90

164

liters/ton

’11

163

liters/ton

’12

181

liters/ton

’13

170

liters/ton’14(Fiscal year)

80

Energy consumption

70

Change in energy consumption
per unit of production from base year

60

ESH and Quality❻ Energy-Saving Initiatives Overseas

Results of Energy-Saving Initiatives Overseas in
Fiscal Year 2014

Laws and regulations, as well as infrastructure, differ between
countries and regions. The DIC Group strives to promote energy
savings and efficient operations wherever it is active and in sodoing to set precedents for the global chemicals industry. Against
a 10.3% decline in production volume, energy-saving initiatives by
DIC Group companies overseas in fiscal year 2014 reduced energy
consumption 15.4% and yielded a 5.7% improvement in energy
consumption per unit of production. These achievements supported
a substantial decline in associated CO 2 emissions of 15.9%, or
76,235 tons.

Number of
initiatives

Reduction in energy
Reduction in CO2
consumption (kl) emissions ( Tons of CO2 )Greater China

26

374

842

Asia–Pacificregion

61

885

1,960

Total

87

1,259

2,802

Greater China

In November 2014, 26 energy officers from 16 sites in the PRC gathered at DIC Zhangjiagang
Chemicals Co., Ltd., a manufacturer of synthetic resins in Zhangjiagang, Jiangsu Province,in the PRC, for an energy management conference on the theme of energy-saving andwastewater processing. Participants reviewed initiatives, and shared information on ongoingchallenges and discussed future plans. A representative of DIC’s Production Control
Department gave a presentation using the Company’s installation of LED lights and efforts topromote the efficient operation of air compressors as case studies.
Authorities in the PRC are encouraging companies to switch from light oil to environmentfriendly town gas, as well as to make use of an active biodiesel refined from vegetable
matter. DIC Group companies in the PRC are exploring the possibility of making this switch,
examining such considerations as infrastructure and site locations. Shanghai DIC Ink
Co., Ltd., which manufactures printing inks, began using biodiesel in fiscal year 2013. The
company plans to replace 90% of its boiler fuel with biodiesel in fiscal year 2014.

Energy management conference held in Zhangjiagang

Group discussion

Other Initiatives
Zhongshan DIC Colour Co., Ltd.
❶ Expanded installation of energy-saving electricsteam generators❷ Updated ceiling light fixtures in production facilities(switched from mercury-containing to LED lights)
❶

❷

❶

❷

DIC Synthetic Resins (Zhongshan) Co., Ltd.
❶ Brought in new high-efficiency air compressors❷ Added inverter controls to exhaust gas incinerators

Shenzhen-DIC Co., Ltd.
Switched boiler fuel from light oil to natural gas
Nantong DIC Color Co., Ltd.
Transformed heat sources for showers (electric heaters) into waste heat recovery units for exhaust gas boilers
DIC Zhangjiagang Chemicals Co., Ltd. Increased operating efficiency of circulating pumps in chillers

DIC Report 2015

53

ESH and Quality

Asia–Pacific region

In September 2013, 25 energy officers from 19 sites in 11 countries and territories in the Asia–Pacific region gathered for a conference on energy management
issues and measures. Participants discussed increases in energy consumption in emerging economies due to economic expansion, as well as the horizontal
deployment of measures that have proven effective in addressing issues specific to the region.
In fiscal year 2014, production volume in the Asia–Pacific region increased, owing to the acquisition of a manufacturer in the preceding period. Nonetheless, theactive promotion of energy-saving initiatives at individual sites resulted in a decline in associated CO2 emissions per unit of production of 1,960 metric tons. In fiscal
year 2015, the DIC Group will implement strategic measures aimed at principal energy-consuming sites to reduce dependence on high-emission energy sources,
including the installation of facilities for the independent generation of renewable energy, and will work to establish quantitative targets for the region as a whole.
Principal Initiatives
Siam Chemical Industry Co., Ltd. (Thailand)(1) Switched from existing coolant pumps to high-efficiency models; (2) Updated light fixtures (installed LED lights)

PT DIC ASTRA Chemicals (Indonesia)(1) Installed electricity monitoring system across entire site; (2) Updated light fixtures (installed LED lights)

DIC Epoxy (Malaysia) Sdn. Bhd.

Added inverter controls to all five coolant pumps

DIC Graphics (Thailand) Co., Ltd.

(1) Added inverter controls to coolant pumps; (2) Updated light fixtures (installed LED lights)

DIC Compounds (Malaysia) Sdn. Bhd.

Updated light fixtures (installed LED lights)

DIC Fine Chemicals Private Limited (India)

Updated light fixtures (installed LED lights) across entire site

Americas and Europe

In October 2013, the Sun Chemical Group—which has operations in 13 countries in North, Central and South America and 43 countries in Europe—rolled out a new internal Web-based
data collecting system called EcoTrack, which facilitates the collection and centralized monitoring of data for key sustainability metrics related to energy, water, waste and safety at 153 sites.
In addition to increasing the transparency of site data related to production, energy-saving initiatives and CO2 emissions, among others, EcoTrack was designed to encourage the sharing
of information and the horizontal deployment of measures. The full implementation of the system across the Sun Chemical Group in fiscal year 2014 greatly increased the transparency of
crucial data, which in turn accelerated the cycle of analyzing data, formulating responses and deploying measures, significantly increasing the progress of energy-saving initiatives. At twosites, for example, the mounting of sensors on production equipment and analysis of resulting data facilitated the calculation of optimum electric power and operating times for individual
processes to minimize wasted power and optimize production. As a consequence, both sites succeeded in boosting production volume while substantially lowering their use of electric
power, enabling both to achieve noteworthy reductions in both energy consumption and costs.

The Sun Chemical Group is implementing energysaving initiatives at production and warehouse facilities(United States)V O I CESun Chemical production facilities are promoting energy management
by, among others, expanding use of landfill gas (biogas) (United States)

Logo for Sun Chemic al initiative aimed at
optimizing energy and production processes(United States and Europe)

General Manager, Production Control Department

from the DIC GroupWe continue to explore new ways to increase motivation.
Until now, the principle indicator of energy efficiency has been energy consumption per unit of production, which measuresvolume of energy used against production output. However, in the chemicals industry the trend is toward high-valueadded products and high-mix, low-volume production, so you can’t look only at consumption per unit of production. For thisreason, we will increase the weighting of energy-saving initiatives that lead directly to cost reductions in our next three-year
management plan and promote the creation of new schemes aimed at increasing employee motivation.

DIC Report 2015

54

Michio Uchiyama

ESH and Quality❼ Reduction of Greenhouse Gas Emissions Attributable to Logistics

In fiscal year 2014, DIC examined its upstream distribution bases to
identify those with low efficiency levels and implemented measures
aimed at improving transport options for relatively short distances.
Thanks to these and other efforts, energy consumption in logistics
and associated CO2 emissions declined 2.0% and 5.0%, respectively,
despite an increase in transport volume. The principal factor behindthese improvements was the promotion of modal shift focusing on
marine, rail and air transport, underscored by a 23.2% increase in
the volume of products shipped using these modes of transport. The
volume of products transported by container ship rose 7.1%, whiletransport by rail climbed 40.0%. The DIC Group’s modal shift rate infiscal year 2014 was 10.7%, up from 9.1% in the preceding period.

Energy Consumption Per Unit of Production for theTransport of Products(10,000 tkm) / (Tons of CO2)

(GJ / 10,000 tkm)

18

30,00016

25,00014
12

20,00010

15,0008
6

10,000

4

5,000

2
0

0

’06

’07

’08

Transport volume (10,000 tkm)

’09

’10

’11

’12

’13

’14

Energy consumption per unit of production (GJ/10,000 tkm)

Energy consumption per unit of production (tons of CO2)

❽ Initiatives in Areas Other than Production

In fiscal year 2014, DIC once again promoted efforts in line with Japan’s Cool Biz and Warm Biz campaigns, official efforts to reduce electric
power consumption by limiting the use of air conditioning in summer and winter through measures such as the introduction of more relaxed
office dress codes. The Company also continued to promote efforts aimed at reinforcing employees’ awareness of the importance of lowering
energy consumption, including replacing superannuated light fixtures and air conditioning equipment in offices and sites with newer, highefficiency models that satisfy standards set by the ECCJ for its Top Runner program, turning off lights when not needed and implementing
mandatory 22° winter and 28° summer air conditioning settings.
❾ Reporting to the CDP

The CDP (formerly the Carbon Disclosure Project) is a global nonprofit organization (NPO) that works on behalf of institutional investors tomotivate companies to disclose information on initiatives to combat climate change and key environmental data. The CDP analyzes andevaluates information reported by companies and communicates its findings to said institutional investors. DIC has been reporting to the CDP
since 2010. The CDP has recognized the Company’s consistent environmental initiatives and in fiscal year 2014 awarded it an overall score of
89B (89 points for disclosure and a performance class of B), significantly exceeding the average for companies based in Japan, which is 78B.

V O I CEManager in Charge of efficiency, Production Administrative Divisionfrom the DIC GroupWe are taking steps to prepare for the liberalization of Japan's energy sector.
In March 2015, the Cabinet of Japan approved bills to separate transmission and distribution from the country’s electric powerfirms, which currently have regional monopolies, in 2020 and to liberalize the town gas retail market in 2017. These changes
will broaden the energy supply alternatives available to both commercial users and consumers. To date, we have reviewed
contracts with electric power suppliers at a number of domestic DIC Group sites and have achieved substantial cost reductions
by procuring from suppliers offering packages combining both. With Japan’s energy industry at a major turning point, it is
crucial that DIC Group sites promote further efforts tailored to regional supply infrastructures—including installing independent
generating facilities—to ensure continued operating efficiency.

DIC Report 2015

55

Kazuo Kawaguchi

ESH and Quality

Reducing Emissions of Chemicals into the Environment
Basic Approach
As chemicals companies handle a considerably greater volume and more diverse range of chemical substances than companies in otherindustries, they must be extremely vigilant to prevent discharges of such substances into the environment.
DIC and DIC Group companies in Japan have worked to reduce emissions into the air, water and soil of substances designated under the
Pollutant Release and Transfer Register (PRTR) * since fiscal year 2000 and of substances targeted under a voluntary scheme created by theJapan Chemical Industry Association (JCIA) since fiscal year 2005. In fiscal year 2013, DIC introduced management by objectives (MBO) at
DIC Group companies in Greater China and the Asia–Pacific region with the aim of further encouraging emissions reductions.

Goals and Achievements of Major Initiatives
Objective of initiatives

Goal for fiscal year 2014

Control emissions of chemical
substances (Reduce emissions of 462
PRTR-designated substances and 89
substances and one substance grouptargeted by JCIA for voluntary control).

DIC Group (Japan):
Total emissions of 402 tons(-14% from fiscal year 2013)

Achievement in fiscal year 2014

Evaluation

DIC Group (Japan):
Total emissions of 367 tons(-4% from fiscal year 2013)★★★

Goal for fiscal year 2015

DIC Group (Japan):
Total emissions of 395 tons(+7% from fiscal year 2014)* The PRTR is a scheme for assessing, aggregating and disseminating data on the sources of hazardous chemicals, amounts released into the environment and amounts transferred off-sitefrom industrial establishments via waste products.

Principal Initiatives in Fiscal Year 2014

In fiscal year 2014, the DIC Group’s principal initiatives focused on 462 class-1 chemical substances designated by the PRTR
and 89 chemical substances* (excluding class-1 substances) and one substance group—chain hydrocarbons with 4 to 8
carbons—targeted for study by the JCIA. During the period, DIC and DIC Group companies in Japan used and/or produced
93 and 108 of these substances, respectively, in amounts exceeding 1.0 ton. DIC Group companies in Japan sought to meettheir emissions reduction targets for PRTR-designated substances by reviewing cleaning processes for reaction tanks and local
exhaust ventilation devices.
Overseas, DIC Group companies tracked emissions of targeted substances and reported findings to regulators in line withpertinent national and regional regulations. In fiscal year 2013, DIC Group companies in Greater China and the Asia–Pacificregion introduced MBO using pertinent national targets and guidelines, thereby reinforcing their commitment to such efforts. The
Group will continue working to attain both facility- and operations-related reductions targets.
* In 2014, the JCIA reviewed chemical substances designated under the PRTR, as a result of which the number of targeted substances, previously 105, was revised to 89.

Environmental Emissions of Targeted Chemical Substances(551 Substances, Including those Designated by the PRTR,
and One Substance Group) in Fiscal Year 2014

Emissions into the air
DIC

Emissions into water
Emissions into soil
Emissions into the air

DIC Group (Japan)

Emissions into water
Emissions into soil

Number of Targeted Chemical Substances Used and/or
Produced in Amounts Exceeding 1.0 Ton in Fiscal Year 2014

189 tons
13 tons
0 tonsDIC

354 tons
13 tons
0 tons93

DIC Report 201556

DIC Group (Japan)

108

ESH and Quality

Emission of Targeted Chemical Substances (551 Substances and One Substance Group)in Fiscal Year 2014

DIC
Substance

DIC Group (Japan)

Emissions
Emissions
into the environment into the environment

Ethyl acetate

69 tons

95 tons

Methyl ethyl ketone

21 tons

39 tons

Toluene43 tons

51 tons

Propyl alcohol

3 tons

14 tons

Styrene4 tons38 tons

Acetone6 tons10 tons

Total

Topic

146 tons(-28.0% from fiscal year 2013)

247 tons(-34.0% from fiscal year 2013)

Komaki plant eliminates organic solvents from tank cleaning process

DIC’s Komaki Plant, in Aichi Prefecture, previously used solvents to clean tanks. Because long-term use of organic solvents poses an incontrovertible risk
to human health, DIC has promoted stringent occupational health engineering controls to prevent exposure, including installing enclosed equipment andmandating the wearing of protective equipment. With the dual objectives of safeguarding employee health and reducing its use of chemical substances,in fiscal year 2014 the plant replaced organic solvents in its tank cleaning process with water. DIC will continue reassessing and improving workplaceenvironments with the aim of protecting its employees from work-related health hazards.

DIC Report 201557

ESH and Quality

Reducing Environmental Impact on Air, Water and Soil
Goals and Achievements of Major Initiatives
Achievement in fiscal year 2014

Evaluation

Goal for fiscal year 2015

DIC Group (Japan): Total emissions of
390 tons (-14% from fiscal year 2013)

DIC Group (Japan): Total emissions of
354 tons (-22% from fiscal year 2013)★★★

DIC Group (Japan): Total emissions of
382 tons (+7% from fiscal year 2014)❶ Addressing VOC Regulations

Emissions into the Air of Targeted Chemical Substances(551 Substances and One Substance Group)

Having succeeded in achieving a voluntary target—set in
fiscal year 2007—of reducing emissions into the air of VOCs
30% by fiscal year 2010 (using fiscal year 2000 as the baseyear) for the DIC Group in Japan, domestic Group companies
continue to pursue steady annual reductions through facility
improvements and emissions management. Overseas, Group
companies in Greater China and the Asia–Pacific region areusing MBO to promote ongoing emissions reductions.

(Tons)

DIC

’10

’11

’12

’13

189

261

’09

354

283

466

310

’00

309

0

555

646

500

745

985

1,000

304

Reduce VOC emissions into the air.

Goal for fiscal year 2014

561

Objective of initiatives’14 (Fiscal year)

DIC Group (Japan)❷ Managing Water Resources

Usable fresh water on the earth’s surface is said to account for only around 0.01% of the planet’s total fresh water resources.
Accordingly, finding effective ways to conserve and manage water resources is a crucial global challenge. The DIC Group withdraws
fresh water (tap water and industrial water) for use in production processes and air conditioning and for drinking, among others. The
Group also discharges wastewater—after purifying it in line with internal standards that exceed official standards in the countries andterritories where it has operations—into rivers and other fresh water bodies. At major sites, the Group recovers purified wastewater andreuses it in production processes, helping reduce both fresh water withdrawn and wastewater discharged by these sites.
In fiscal year 2014, the DIC Group promoted improvements to production processes and the sharing of information Groupwide. Thanks tothese and other efforts, fresh water withdrawn by the global DIC Group amounted to 23,176,000 m 3, a decline of 7.5% from the preceding fiscal
year, comprising withdrawals by the DIC Group in Japan (including DIC) of 12,458,000 m 3, down 14.3%, and by Group companies overseas of
10,718,000 m 3, up 1.7%. Wastewater discharged by the global DIC Group in
fiscal year 2014 amounted to 14,363,000 m 3, a decrease of 3.8%.
Fresh Water Withdrawn
Wastewater Discharged
by the Global DIC Groupby the Global DIC GroupIn fiscal year 2015, the DIC Group will accelerate efforts to centralizein Fiscal Year 2014
in Fiscal Year 2014its management of fresh water and wastewater data. The Group will also
23,176,000㎥
14,363,000㎥
incorporate targets for lowering its consumption of water resources into its new
medium-term management plan, which will commence in fiscal year 2016.

-7.5％

from fiscal year 2013

-3.8％

from fiscal year 2013

❸ Soil and Groundwater Pollution Studies

Japan’s Water Pollution Control Act was revised in 2012 to tighten structural standards governing equipment installed to prevent
groundwater contamination caused by chemical substances. In addition to complying strictly with this act and with the Soil
Contamination Countermeasures Act, the DIC Group in Japan implements soil and groundwater surveys and countermeasures
as necessary and assesses related environmental and safety risks.

DIC Report 201558

ESH and Quality❹ Reducing SOx, NOx and COD

’90

’12

SOx emissions

DIC

DIC Group (Japan)

NOx emissions

DIC

DIC Group (Japan)

’13

’14

0

(Fiscal year)

’90
DIC

’10

’11

’12

’13

530

527

491

495

473

469

483

480

390

400

0

394

142
185

600

46

36

150
186
58

45

44

164
205

’11

64

’10

82

100

204
202

200

157
194

(Tons)
800

69(Tons)
300

156
203

COD

60
63

SOx and NOx Emissions Volumes

745

Taking fiscal year 1990 as the base year, DIC Group companies in Japan have worked to reduce sulfur oxide (SOx) and nitrogenoxide (NOx) emissions—key causes of acid rain—from boilers. These efforts have yielded noteworthy results. The Group isalso achieving steady results in the reduction of chemical oxygen demand (COD), an indicator of water quality deterioration in
wastewater, thereby enhancing its water quality management. Overseas, Group companies are also switching fuel from light
oil to natural gas and replacing light oil-fired and heavy oil-fired boilers with waste wood-fired biomass boilers at sites withappropriate infrastructure.
In the area of water quality management, the Group is also working to protect the environment, including promoting the reuseof water and installing closed-loop water recycling and wastewater treatment systems at its sites that purify water to a level thatexceeds the legally mandated standard.

’14(Fiscal year)

DIC Group (Japan)❺ Complying with Regulations Governing Dioxin Emissions

In Japan, the DIC Group monitors emissions of dioxins from waste incinerators that produce these byproducts, a group ofcompounds with diverse possible isomers of varying toxicities. At present, the Group has six such facilities. Continuous efforts
to reduce emissions levels have enabled the Group to achieve results that greatly surpass standards specified in the Law
Concerning Special Measures Against Dioxins.
Dioxin Emissions from Domestic DIC Group Incinerators

Site
Chiba Plant (DIC)
Hokuriku Plant (DIC)

Scale of facility(incinerating capacity)

Waste gasStandard (ng-TEC/Nm3)

Wastewater

Emissions reported in fiscal
year 2014 (ng-TEC/Nm3)

reported in fiscal
Standard (ng-TEC/Nm3) Emissions
year 2014 (ng-TEC/Nm3)

3 tons/hr

5.0

0.81

10

0.14

0.28 ton/hr

5.0

0.0086100.00017

Approx.

DIC Interior Co., Ltd.

Approx.

0.1ton/hr

10.0

0.37

NA

ー

Hokkaido Plant(DIC Kitanihon Polymer Co., Ltd.)

Approx.

0.2 ton/hr

10.0

0

NA

ー

Tohoku Plant(DIC Kitanihon Polymer Co., Ltd.)

Approx.

0.2 ton/hr

10.0

0.0009NAー

Satte Plant(Seiko PMC Corporation)

Approx.

0.2 ton/hr

10.0

＜0.07

NA

ー

DIC Report 201559

ESH and Quality

Reducing Industrial Waste
Goals and Achievements of Major Initiatives
Objectives of initiatives

Goals for fiscal year 2014

Achievements in fiscal year 2014

Evaluation

Goals for fiscal year 2015

Reduce industrial waste disposed of as
landfill (achieve “zero emissions”).

DIC Group (Japan): 80.3 tons (-6.2%
from fiscal year 2013)

DIC Group (Japan): 80.0 tons (-6.5%
from fiscal year 2013)★★★

DIC Group (Japan): 81.5 tons (+1.8%
from fiscal year 2014)

Reduce industrial waste generated byproduction facilities.

DIC Group (Japan): 53,951 tons (-18.2%
from fiscal year 2013)

DIC Group (Japan): 31,054 tons(-52.4% from fiscal year 2013)★★★

DIC Group (Japan): 29,682 tons (-4.4%
from fiscal year 2014)

Promote recycling.

Promote recycling at DIC Group
companies in Japan and strive toimprove resource recycling.

DIC Group (Japan): Resource recycling
rate was 85% (-10 percentage points)★★

Promote recycling at DIC Group
companies in Japan and strive toimprove resource recycling.

Basic Approach
The DIC Group aims to minimize industrial waste by recycling and reusing materials. Since fiscal year 2001, DIC has been involved in a zeroemissions initiative aimed at reducing industrial waste disposed of as landfill. DIC has deployed zero-emissions initiatives at DIC Group companies
in Japan since fiscal year 2008. With the aim of expanding efforts across the global DIC Group, in fiscal year 2013 DIC began to introduce MBO at
overseas Group companies. DIC subcontracts the treatment of industrial waste to be disposed of as landfill, and ensures waste is properly treated bypromoting strict compliance and on-site confirmation by designated departments at each of its production facilities.

Principal Initiatives in Fiscal Year 2014
Reducing Industrial Waste Disposed of as Landfill
The DIC Group actively works to reduce its disposal of industrial waste as landfill by recycling cinders, dust and sludge into,among others, roadbed materials and raw materials for cement, using thermal recycling to recover waste heat and reducing
production losses by increasing yields.
Initiatives in Japan

3,000

DIC Group (Japan)
DIC+15.6 ％
from fiscal year 2013

Domestic DIC Group companies- 74.9％from fiscal year 2013

- 52.4 ％

0

’00

’01

（Base year）

from fiscal year 2013DIC

DIC Report 2015

60

’02

’03

537
1,288
312
991
128
537
125
320
89
232
90
207
104
158
48
106
44
86
49
80

1,560
2,296

Industrial Waste Generated by the
DIC Group in Japan in Fiscal Year 2014

80

49

4,190
3,426
4,326

5,581

7,981

In fiscal year 2014, the DIC Group pressed forward with a number of key ongoing initiatives. However, the demolition of DIC’s now-closed
Suita Plant, in Osaka Prefecture—formerly a production base for printing inks and colorants—resulted in the discharge of a significant amountof industrial waste during the period. Thanks to efforts to make effective use of wastewater in production processes, the volume of industrial
waste generated by DIC production facilities in the period under review
rose 15.6%. In contrast, the volume of industrial waste generated byIndustrial Waste Disposed of as Landfill
production facilities belonging to other domestic DIC Group companies（Tons）
9,000
declined approximately 75%. Thanks to efforts to make effective useof wastewater in production processes, the total volume of industrial
DIC Group
DIC(Japan)waste generated by the DIC Group's production facilities in Japan in
6,000
fiscal year 2014 declined 52.4% from the fiscal year 2013 level.
tons
tons

’04

DIC Group (Japan)

’05

’06

’07

’08

’09

’10

’11

’12

’13

’14（Fiscal year）

ESH and Quality

In fiscal year 2015, each DIC Group company in Japan will work to reduce the total volume of industrial waste generated byits production facilities by 1% from the fiscal year 2014 level and/or to reduce the volume of industrial waste they dispose of as
landfill. All companies recognize the importance of ensuring that increases in production volume in fiscal year 2015 do not cause
commensurate increases in industrial waste.
In fiscal year 2014, DIC Group companies in Japan continued working to ensure the appropriate disposal of waste
polychlorinated biphenyls (PCBs). Companies also continued to promote the strict management of unprocessed waste, includingtransformers, capacitors and stabilizers, through proper collection and storage in dedicated warehouses.
Using the ETSITE Responsible Care Data Management System

In fiscal year 2012, the DIC Group in Japan introduced a Responsible Care data management system called ETSITE to ensure
rational management and effective usage of management data for industrial waste. ETSITE is an Excel-based data management
system that provides information on companies that dispose of industrial waste, looking at their disposal routes and flows, andreports to Japan’s prefectural governments. In fiscal year 2014, the use of ETSITE helped DIC improve the efficiency of various
practices and of progress management.
Initiatives Overseas

In addition to ensuring the disposal of industrial waste in a manner that complies with national and regional regulations, the DIC
Group’s overseas production facilities work to minimize industrial waste through the voluntary recycling and reuse of materials.
In fiscal year 2013, overseas Group companies sought to reinforce efforts to reduce industrial waste by introducing MBO.
In fiscal year 2014, DIC Group companies in the Americas and Europe and the Asia–Pacific region deployed measures
aimed at achieving reductions in waste generated during various production processes that exceed national and regional legal
requirements. Nonetheless, the total volume of industrial waste generated by DIC Group production facilities overseas rose 6.7%.
Having cooperated with DIC’s Responsible Care and Production Control departments to analyze the reasons for this increase,in fiscal year 2015 companies in both regions will focus on further reinforcing management capabilities while also limiting thegeneration of industrial waste and reducing the volume of industrial waste disposed of as landfill.

DIC Report 201561

ESH and Quality

Overview of Environmental Impact of the DIC Group’s Operating Activities

Total energy consumption(crude oil equivalent)

111,898kl*-1.4

Production
volume907,000
tons（-3.6％）

Emissions into the air

OUTPUTDIC Group(Japan)INPUTThe DIC Group quantifies its environmental inputs (resources consumed), such as energy and water consumption, and outputs,that is, emissions into the environment, and uses its findings to formulate comprehensive and efficient strategies for reducing its
environmental footprint.
The chart below is a comprehensive illustration of the environmental impact of the DIC Group’s domestic operating activities
in fiscal year 2014. The chart shows the environmental impact for two input items (total energy consumption and total water
consumption) and six output items (emissions of 551 substances (including those designated under the PRTR*1) and one
substance group*2, emissions of CO2, emissions of NOx, emissions of SOx, COD in wastewater and industrial waste disposed ofas landfill.

CO2 emissions

255,000 +4.4
tons

Atmospheric emissions of targeted substances(551 substances and one substance group)from fiscal% year 2013
tons

354

from fiscal% year 2013

* Renewable energy is not included in the above figures.

Wastewater discharged

11,298,000

12,458,000㎥

Production
volume1,037,000
tons（-10.3％）

176,554 kl -15.4%

from fiscal year 2013

tons

m

3

13

46

tons

-2.4

%
from fiscal year 2013

+23.8

CO2 emissions

402,000-15.9%
tons from fiscal year 2013

Emissions into soil%

Industrial waste
disposed of as landfill

from fiscal year 2013

23,539tons+6.7%
from fiscal year 2013

*1 The PRTR is a scheme for assessing, aggregating and disseminating data on the sources of hazardous chemicals,
amounts released into the environment and amounts transferred off-site from industrial establishments via waste products.
*2 The “551 substances and one substance group” comprises 462 chemical substances designated by the PRTR and 89 substances and one
substance group targeted for study by the JCIA.

DIC Report 201562

fiscalyear 2013-20.7% fromEmissions into soil
Industrial waste disposedof as landfill

80

-6.5

%
tons from fiscal year 2013

Soil-related emissions oftargeted substances(551 substances andone substance group)
tons

0

Emissions into the air

Total water
consumption

10,718,000 ㎥ +1.7

fiscalyear 2013-0.5% fromSOx emissions

Aquatic emissions of targeted substances%(551 substances andone substance group)
tons from fiscal year 2013

from fiscal% year 2013

Total energy consumption(crude oil equivalent)

185

COD in+7.1%
wastewater 530 tons from fiscal year 2013

OUTPUTINPUT

DIC Group(Overseas)-22.4

NOx emissions

Emissions into water

Total water
consumption-14.3

from fiscal% year 2013

Wastewater
discharged

3,066,000-8.7%

from fiscal year 2013

m3

ESH and Quality

Managing Chemical Substances in Products
Goals and Achievements of Major Initiatives
Objectives of initiatives

Achievements in fiscal year 2014

Evaluation

・Comply with GHS Rev. 4 (fourth ・Secured JIS* compliance for CIRIUS
and complied with SDS and label
revised edition of the GHS).
requirements of GHS Rev. 4.

★★★

Respond to requirements relating to・Begin using the Wercs at DIC Group ・Reviewed the Wercs usage briefings
chemical product information.
to review use at overseas DIC Group
companies worldwide.
c o m p a n i e s, i d e n t i f y i n g i s s u e s ;encouraging use at overseas Group
companies remains a priority issue.

★★

Comply with overseas regulations(e.g., the EU’s REACH legislation).

Goals for fiscal year 2014

・Promote compliance with the PRC’s ・Pushed ahead with preparations
and provided information about
Regulations on Registration ofregistration.
Hazardous Chemicals in China.
・Prepare for the implementation of the ・Promoted possible preparations
under the absence of subordinate
ROK’s K-REACH legislation.
legislation.

Goals for fiscal year 2015

Provide education for employees of
DIC Group companies and affiliates in
the PRC regarding legal and regulatorycompliance.

・Promote use of the Wercs at overseas
Group companies.
★★★

・Comply with Taiwan’s Toxic Chemical
Substance Control Act and Occupational
Safety and Health Act.

*Japanese Industrial Standards

Promoting Safety for Chemical Substances and Products
Basic Approach and Framework for Implementation
In 2003, the UN Economic Commission for Europe issued the first edition of the Globally Harmonized System of Classificationand Labelling of Chemicals (GHS), the idea being to reduce chemical risks through an internationally harmonized approach toclassification of chemicals by type and toxicity, the clear display of information on labels for better understanding and the provision of
SDSs.
To respond swiftly to requests to reduce risks by providing customers with complete information on hazards associated withchemical substances, DIC established CIRIUS (Chemical Substance Information Comprehensive Management System) for domestic
products in 2009. CIRIUS centralizes the management of imformation about raw materials and chemicals to facilitate the provision ofreliable SDSs. The system also automatically checks various laws and regulations. These include security export control rules, theAct on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc., the Industrial Safety and Health Act and
the Poisonous and Deleterious Substances Control Act. In 2013, DIC began using the Wercs (a global SDS/label creation systemdeveloped with know-how from DIC) for products for export. As a result, DIC now has a structure that enables it to compile SDSs formore than 250,000 products that comply with national and regional laws and regulations and is accessible in all local languages. In
April 2014, DIC began using the Wercs to issue SDSs and labels for all exported products.
As specialized knowledge about chemical substance management is essential, DIC focuses on training in the manufacture, importand handling of chemicals in accordance with applicable laws and regulations and draws on its proprietary licensing system toenhance the skills of employees.

The Wercs logo

DIC Report 2015

63

ESH and Quality

Reducing Risks by Providing Information Worldwide
Introducing the Wercs
In April 2013, DIC centralized the management of information on the composition of chemical substances in exported products
and on chemical substance legislation in various countries and regions, switching to the Wercs, a new system that automaticallycreates product SDSs in the language—and in compliance with the laws and regulations—of individual export destinations,creating a foundation for its global information system and helping reduce risks for customers.
DIC employs CIRIUS to centrally manage raw materials and chemical substances information for products manufactured
in Japan. CIRIUS automatically checks the Security Trade Control Law and Chemical Substances Control Law, the Industrial
Safety and Health Act and the Poisonous and Deleterious Substances Control Act to swiftly supply highly reliable SDSs.
For products for export, DIC traditionally responded to regulatory requirements on a country-by-country basis by using
software and outsourcing procedures to third parties. The Wercs, which incorporates know-how accumulated by DIC in thecreation and use of CIRIUS, was developed with the aim of expediting the provision of such information. The Wercs facilitates
the translation of data into 46 different languages—including the languages of the 19 countries and territories to which DIC
currently exports products—and the preparation of SDSs and labels in local languages that comply with the laws and regulationsof countries and territories in the Americas, Europe, Asia and elsewhere.
Since switching to the Wercs for supplying SDSs and issuing labels for exported products, DIC has expanded the number ofcountries for which it can prepare local-language, legally compliant SDSs and labels to include the Republic of Korea (ROK),
Europe, the United States, the PRC and Taiwan. Since April 2014, all SDSs and labels for products for export have been
prepared using the Wercs. DIC is also promoting deployment of thesystem to Group companies in Japan, which are using the Wercs intandem with CIRIUS to ensure the effective management of chemical
substances across the Group’s domestic supply chain.
In response to the revision of pertinent laws and regulations, DIC is
also stepping up efforts to implement GHS hazard pictograms. To this,the Company is setting up an on-demand label printing system thatlinks the Wercs with production lines.

DIC provides information on chemical substances using CIRUIS in Japanand the Wercs overseas.

On-Demand Label Printing System Flowchart

Product A

Product A

Information on composition is inputA
GHS separation caution warning

Product B
Product C

Product B

The Wercs
Product names,
lot numbers,
net andother information

B
Label
printing
systemLabelprinter

Product CC

SAP

DIC Report 201564

ESH and Quality

Complying with Laws and Regulations
Collecting, Analyzing and Communicating the Latest Information

DIC collects the latest information on chemical substances through international consultants and experts, news wire services and chemicals
industry associations to ensure that it can respond swiftly and effectively to revisions in laws and regulations.
Recent years have seen the European Union enact Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH)*
legislation, and the ROK, the PRC and Taiwan introduce legislation aimed at strengthening chemical substances risk management. As
well, countries around Southeast Asia have deployed GHSs. DIC has responded swiftly to such developments, and has supplied the latest
information to its customers by issuing SDSs and labels.
In fiscal year 2013, DIC switched to using the Wercs for the creation of SDSs and labels for existing products for export. In May 2013,
authorities in the ROK announced the new Act on the Registration and Evaluation of Chemicals (K-REACH). DIC is currently analyzing
information and taking steps to prepare for the law’s implementation in 2015.
* Under REACH, businesses bear full responsibility for evaluating the safety of chemical substances they produce and/or use with no distinction made between “existing” and“new” substances. REACH also prohibits the use of specified chemical substances that pose unacceptable risks to human health.

Training in Chemical Substance Management

Compliance with laws and ordinances is a fundamental requirement for DIC as a comprehensive chemicals manufacturer and thus central to risk
management. Accordingly, the Company endeavors to improve employee awareness and knowledge of chemical substance regulations in Japan andoverseas by holding workshops and maintaining a proprietary internal licensing system.
Efforts include providing specialized training for individuals involved in exporting chemical substances in line with the Foreign Exchange and Foreign
Trade Act, and for individuals involved in importing substances in line with the Act on the Evaluation of Chemical Substances and Regulation of Their
Manufacture, etc., and the Industrial Safety and Health Act and the Poisonous and Deleterious Substances Control Act. DIC only licenses employees
who have completed designated training and passed in-house examinations. The licenses are valid for either two or three years. Licenses permit these
individuals to engage in import and export operations. To renew their licenses, they must retake classes and pass the subsequent exams.
In fiscal year 2014, 777 employees qualified for a Class A license, which requires specialized knowledge, 743 of whom subsequently received
licenses. Another 120 people passed the exam for a Class B license, which pertains to ancillary operations.
Holding Seminars on the Wercs in Greater China and the Asia–Pacific Region

In keeping with the full-fledged global deployment of the Wercs, DIC dispatched Responsible Care Department officers to hold five seminars in Greater
China and the Asia–Pacific region (Taiwan, Thailand, Malaysia and Indonesia) in 2014.
Such seminars go beyond officers explaining the operations and advantages of the Wercs. It is important for participants to understand thebackground and intent of legal revisions and steadily amass basic data and update information. Constantly injecting such information into systems
maximizes the potential of the Wercs, making it possible to provide valuable and timely information to customers and reduce overall social risks.
The seminars served to give the 74 participants from 15 companies an idea of the Wercs’ potential as a tool and to remind them of the importance ofsharing issues to find effective solutions.

V O I CE

Senior Manager in Charge of Regulatory Affairs, Responsible Care Department

from the DIC GroupWe are working to fulfill our responsibilities to society as a comprehensive chemicals
manufacturer in an era that demands proper disclosure.
In fiscal year 2014, DIC registered 917 low-volume new chemical substances under Japan's Act on the Evaluation of Chemical Substances andRegulation of Their Manufacture, etc., ranking it as one of the top companies in terms of new substances registered, a testament to the Company’s
exceptional development capabilities and broad expertise in chemical products in general.
We believe that sharing our knowledge with diverse stakeholders is an effective way of reducing the risks posed by chemical substancesin all areas of society. As such, we promote research and efforts to raise awareness as a member of industry organizations concerned with
manufacturing, imports and exports. We also participate in regulatory systems-related projects with government authorities and dispatch employees
to conduct seminars at universities, thereby helping to disseminate knowledge and information.
We will continue to communicate closely with government, industry and academic organizations in multiple fields while at the same time working tofulfill our responsibilities to society as a general chemicals manufacturer in an era that demands proper disclosure.

DIC Report 2015

65

Masato Akama

ESH and Quality

Enhancing Product Quarity and Customer Satisfaction
Goals and Achievements of Major Initiatives
Objective of initiatives

Secure product quality.

Goals for fiscal year 2014

Achievements in fiscal year 2014

Evaluation

・Information on best practices and internal audit materials
was published in-house and initiatives aimed at enhancing
・Improve internal audits, viewing themas an opportunity to enhance theinternal audits were rolled out Groupwide.
quality of work.
・ISO officers at each production facility organized liaison
committees to encourage information sharing, thereby
laying the groundwork for initiatives in fiscal year 2015
・Leverage QMS efforts to promotecollaboration across DIC’s matrix-likethat will seek to strengthen collaboration.
corporate organization to enhance ・Product groups within product divisions conducted quality
quality management practices.
audits, and confirmed that DIC’s quality management
systems had begun to function steadily.

Goals for fiscal year 2015
・Improve internal audits, viewing themas an opportunity to enhance thequality of work.

★★★

・Leverage QMS efforts to promotecollaboration across DIC’s matrix-like
corporate organization to enhancequality management practices.

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

DIC’s Quality Policy “Contribute to the prosperity of customers and society by consistently providing reliable products.”

Framework for Implementation
To better leverage its agility and comprehensive capabilities, in April 2012 DIC realigned its overall quality
management system (QMS), establishing a matrix-like corporate organization that positions productdivisions on the vertical axis and sales administrative divisions, the Production Administrative Division andthe Technical Administrative Division on the horizontal axis. In line with this change, the Group introduced
a QMS based on ISO 9001, the International Organization for Standardization’s benchmark for such
systems, and subsequently earned ISO 9001 certification for all of its production facilities. The Group
capitalizes on this QMS and on its overall system to promote ongoing efforts to enhance quality.
Domestic and overseas DIC Group companies (domestic consolidated companies and companies inGreater China and the Asia–Pacific region) also use ISO 9001-compliant systems as part of efforts tocontinuously enhance their quality management capabilities.

Enhancequality

Product
divisions
QMS

Increasecustomersatisfaction

Production facilities certified under ISO 9001

Production Administrative Division
Technical Administrative Division
Sales administrative divisions❶ Initiatives Aimed at Increasing Customer Satisfaction

DIC’s system for ensuring
customer satisfaction

Aspects visible
to customers

Close cooperation among relevant divisions and departments from product planning through to shipment enables DIC to develop and manufacture products withhigh added value, while rigorous process and identification management ensure product quality. Meticulous risk evaluation is conducted at the design review
stage to guarantee safety. After products are sold, customer and market assessments are gathered and fed back to development departments to facilitate further
quality improvements. The Group also uses periodic quality audits to promote quality improvements. By sharing customer feedback and other information within
its matrix-like corporate organization, and promoting close cooperation among product divisions, the Group works tirelessly to achieve customer satisfaction.
Requests from customers/market and society
Requirements

Information from customer
Output from DIC
Products

Sales strategies
Quality assurance
Planning and proposals

Design anddevelopment

Marketing

Production

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

SDSs
Technical
documents

Labeling
Packaging
Sample for
evaluation test

Design review
Validation
Control of changes

Product evaluation
Trial production
Mass trial production

Contract/delivery specifications
COA (certificate of analysis)
SDS
Catalog
Product

Production/quality
confirmation Products

DIC website
Customer consultation information
Technical service
Quality validation

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

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

DIC Report 2015

66

ESH and Quality❷ Redefining and Promoting Awareness of DIC’s Distinctive Quality Management System

DIC has developed a distinctive QMS that focuses on constant quality improvements throughISO-based internal quality audits, launched in fiscal year 2012, and quality management
assessment-based quality initiatives conducted by product divisions. Recognizing that improving
internal quality audit capabilities was crucial to raising the effectiveness of product divisions’quality improvement initiatives, DIC provides training designed to upgrade the skills of internal
auditors. Since fiscal year 2013, DIC has also sought to encourage self development by having
audits attended by internal auditors from other sites. Going forward, DIC will continue to focus
on firmly establishing and promoting awareness of its QMS.
Based on audit results at individual production sites, in fiscal year 2014 DIC publishedinformation on best practices and internal materials in-house and rolled out initiatives Groupwide
with the aim of further enhancing internal audits. In addition, ISO officers at each production
facility organized liaison committees to encourage information sharing, thereby laying the
groundwork for initiatives in fiscal year 2015 that will seek to strengthen collaboration.
In recognition of their quality management efforts, seven DIC Group sites (the Komaki,
Yokkaichi, Saitama, Tatebayashi, Chiba and Hokuriku plants and DIC Epoxy (Malaysia) Sdn.
Bhd.) maintained their certification under Sony Corporation’s Green Partner Environmental
Quality Approval Program.

Using case studies to identify causes of quality-related issues

Why-why analysis training session on office procedures❸ Preventing the Recurrence of Problems

Quality News, Issue No. 61 (published February 2015), spotlighting
caution and carelessness

Information on quality problems (complaints and criticisms) that arise is collated and analyzed and then sharedacross the Group to prevent recurrence. To discover the causes of such problems, the Group employs “whywhy analysis” (“naze-naze bunseki”).
Why-why analysis involves repeatedly asking “why” to encourage people not to jump to conclusions, butrather to investigate and identify the actual root causes of such problems, thereby making it possible to prevent
recurrence. DIC also applies why-why analysis in determining the causes of accidents, an approach that
continues to yield solid results. In fiscal year 2014, DIC proposed expanding the scope of why-why analysis toencompass back-office functions with the goal of reducing/preventing the recurrence of mistakes made in thereceipt and placing of orders. In fiscal year 2015, training in why-why analysis was introduced on a trial basis.
In 2011, DIC began publishing Quality News, which provides useful information on quality management
and ways to enhance work quality. In addition to being published regularly on DIC’s portal site and distributed
directly to relevant parties, Quality News is used in employee training.
Change in the Number of Quality Problems.
Change in the Number of Product Returns
0
ー10

-16

-10

ー20
ー30

’11

V O I CE

’12

Change in the Number of Complaints Received
0

-25

-26

’13

’14

ー10
ー20
(FY)

ー30

-22
’11

-10
’12

-18
’13

-27
’14

(FY)

Senior Manager in Charge of Quality Management, Quality Assurance Department

from the DIC GroupThe pursuit of customer satisfaction is the ultimate goal of our efforts.
For the DIC Group, quality management goes beyond product quality. Our ultimate goal is to ensure customer satisfaction.
Our two systems for managing quality, together with efforts to enhance internal audits and the provision of training in the useof why-why analysis are all essential to attaining this goal. The ongoing promotion of these and other initiatives helps improve
the awareness and skills of our employees and prevent minor errors, product defects and complaints, thus supporting steady
improvements in product quality.

DIC Report 2015

67

Mitsuru Sakai

ESH and Quality

Report on Other Initiatives
Goals and Achievements of Major Initiatives
Objectives of initiatives

Goals for fiscal year 2014

Achievements in fiscal year 2014

Evaluation

Goals for fiscal year 2015

Report on Responsible Care initiatives
and prepare business site reports.

Create a system that facilitates thegathering of uniform performance data
across the DIC Group. Promote ongoing
Responsible Care initiatives.

Steps were taken to establish afoundation for the creation of a system
for standardizing performance datathat takes into account the laws andregulations of different countries.

★★★

・Step up efforts to enhance the DIC
Group’s performance.
・Promote ongoing Responsible Careinitiatives tailored to local markets.

Implement measures for PCBs.

Collect and store PCBs in an
appropriate manner and ensure proper
disposal in line with the practices of theJapan Environmental Storage & Safety
Corporation (JESCO).

PCBs were collected and stored in
an appropriate manner and proper
disposal in line with the practices of
JESCO was ensured.

★★★

・Maintain system for storing andmanaging PCBs.
・Promote the proper disposal of PCBs.

Protect the ozone layer.

Avoid the adoption of new materials
containing specified CFCs.

The adoption of new materials
containing specified CFCs was
avoided.

★★★

・Reinforce framework for managing
equipment containing specified CFCs.
・Avoid the adoption of new materials
containing specified CFCs.

Asbestos

Remove and dispose of newly
discovered asbestos encounteredduring demolition in accordance withpertinent laws.

Asbestos insulation was newly
discovered during the demolition of a
facility and was removed and disposedof in a legally appropriate manner.

★★★

Ensure awareness of the potential
risks associated with the discovery ofasbestos during demolition and respond
appropriately.

★★★

・Enhance the capabilities of ESH
coordinators in Greater China and theAsia–Pacific region.
・Educate employees about chemical
substances in raw materials andproducts and about compliance withrelated laws and regulations and build
framework for such activities.

・Provide regular training to educate ・Training was provided that focusedon educating employees about
employees about pertinent laws andpertinent laws and regulations.
regulations.
Train raw materials and product safety
・Make effective use of system for ・The system for putting employees
experts.
who have earned in-house licenses
putting employees who have earnedin charge of imports was usedin-house licenses in charge ofeffectively.
imports.

DIC Report 2015

68

Human Resources Management

Core and Category-Specific Themes

Working to Enhance Job Satisfaction
Goals and Achievements of Major Initiatives
Objectives of initiatives

Goals for fiscal years 2014–2015

Achievements in fiscal year 2014

Evaluation

Goals for fiscal year 2015

・Conduct voluntary human rights and labor ・In November 2014, voluntary human rights and labor
practices inspections were conducted at 59 Grouppractices inspections within the Group.
companies in Japan and overseas.

★★★

・Assess the state of human rights and labor practices
based on the results of voluntary inspections andexplore approaches for ongoing initiatives, including
voluntary inspections.

Foster and endorse the advancementof local staff overseas with the aim of ・Promote efforts to foster global human ・A total of 40 domestic employees participated in theadvancing global management.
fiscal year 2014 edition of the Global Challenge Program.
resources.
In addition, 17 trainees were dispatched from Japan tooverseas Group companies and 55 trainees were sentfrom overseas to Group companies in Japan.
・Review and establish a policy for the assignment of ・New policies were formulated, with feedback
female employees to sales positions with the aim offrom individuals who have used existing systems
Encourage women in the workplacebroadening the range of jobs open to women.
incorporated.
with the aim of securing a diverse labor
force and supporting diverse working
・Ensure the appropriate administration of programs ・The Libra work–life balance support guide wasstyles.
designed to assist employees balancing the demands
updated to reflect changes to pertinent legislation.
of work and childcare or nursing care responsibilities.
Promote the hiring of individuals with disabilities
with the aim of securing a diverse labor force andsupporting diverse working styles.

Increase the number of disabled employees to 2.2%of DIC’s total labor force, thereby ensuring consistentcompliance with Japan’s legally mandated quota of 2.0%.

As of December 31, 2014, individuals with disabilities
accounted for 2.135% of DIC’s total labor force.

★★
★★

・Continue to offer training programs and trainee
initiatives.

・Establish and deploy an advisor system to support the
careers of female employees.

★★

・Establish key performance indicators for advancing the
careers of female employees.

★★

Increase the number of disabled employees to 2.2%of DIC’s total labor force, exceeding Japan’s legally
mandated quota of 2.0%.

Basic Approach to Human Resources Management

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

Respect for Human Rights

The DIC Group Code of Business Conduct, which outlines standards that DIC Group employees are expected to observe, lays down provisions prohibiting humanrights violations and requiring respect for diversity—philosophies that are the foundation of the DIC Group’s corporate activities. In fiscal year 2014, 59 domestic
and overseas Group companies underwent voluntary human rights and labor practices inspections as part of ongoing efforts to prevent issues from arising. All DIC
Group employees are obliged to provide written pledges to abide by the DIC Group Code of Business Conduct and to conduct themselves as stipulated therein.

Building Trust with the DIC Employees’ Union

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

Global Human Resources Management

The DIC Group has established a global human resources management framework capable of supporting efforts to foster local employees overseas, as wellas to hire individuals based on business considerations without regard for nationality. Having created a human resources system and introduced specialized
training for the next generation of executives at Group companies in the PRC, the Group has recently taken similar steps for companies in Southeast Asia.
Other efforts include creating global human resources databases and establishing systematic training programs.
Integrating DIC Group Executive Evaluation Systems
The Group has also integrated its evaluation systems for Group company presidents and other executives in Japan andoverseas with the goal of encouraging these individuals not only to pursue near-term results for their business units, but also tochoose management approaches that are optimal for the Group as a whole from both a medium- and long-term perspective.
In addition, the Group also integrated its global personnel policies to ensure that remuneration is in keeping with local market
levels and individual job responsibilities.

DIC Report 201569

Human Resources Management

Basic Personnel Statistics

Male

Number of employees

FemaleTotal
Male

Average age

FemaleTotal
Male

Average years of employment

Female
Total

Separations (voluntary)(number of individuals)

Male
Female
Total

Separation rate(voluntary)

Male
FemaleTotal

Fiscal year 2012

Fiscal year 2013

Fiscal year 2014

2,804
622
3,426
42.2
39.4
41.7
18.1
16.7
17.9
31
12
43
1.1%
1.9%
1.3%

2,842
642
3,484
42.2
39.4
41.6
18.2
17.0
18.0
14
10
24
0.5%
1.6%
0.7%

2,876
666
3,542
42.2
39.8
41.7
18.2
17.4
18.1
23
7
30
0.8%
1.1%
0.9%

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

DIC is implementing a variety of initiatives to promote career opportunities for women in linewith its commitment to creating a work environment in which motivated employees can fully
exercise their abilities. While pushing ahead with measures to transform employee mindsets
and the corporate culture, the DIC Group has undertaken various steps to further encourage
the drive and determination of female employees, including by providing education toenhance awareness and broaden the range of jobs open to women. DIC also continues tooffer specialized training for female employees tapped for management positions and oneon-one training designed to expand job opportunities.
Thanks to these and other efforts, the number of female employees who have qualified as
candidates for management positions is rising steadily. As well as increasing the number offemale employees appointed to management positions, DIC continues to promote initiatives
focused on boosting the overall number of female employees in its labor force. The Company
is also working to expand its recruitment of new female graduates from both technical schools
and bachelor’s and master’s degree programs, a key source of talented human resources.

V O I CE

Number of Female Employees
in Management Positions(Including Qualified Candidates) (DIC)
4.83% 4.91%
4.28%

120

5%

3.81%
100

3.44%

4%

80

3%

60

1%

20

2010

2011

2012

2013

Senior rankManager
Percentage of female current orcandidate managers

2014(Fiscal year)

0%

Production Section 4, Polymer Production Department 2, Chiba Plant

from the DIC GroupI want to help create work environments that make female employees feel welcome.
I received quite a bit of attention when I became the first female employee posted to a DIC production site. Today, it is common
to see women working in production, so there are no particular issues to contend with. Jobs at production sites are not limited
to just plant operations and it is hugely motivating for both male and female employees alike to be assigned to a position of
responsibility. Although the number of women working at DIC Group plants is still relatively small, it is my hope that we will see
more in the years ahead. As such, I would like to help create work environments that make female employees feel welcome.

DIC Report 2015

70

4.91%

2%

40

0

Female employees as apercentage of employees
in management positions(including qualified candidates)

Ayumi Hachioji

Human Resources Management

Number of New Graduates Hired by DIC and Retention Rate (Including Individuals Seconded to DIC Group Companies in Japan)
Fiscal year 2009 Fiscal year 2010 Fiscal year 2011
hires
hires
hires

Fiscal year 2012 Fiscal year 2013 Fiscal year 2014
Male

New
graduates Female
hired
Total

69
16
85

70
24
94

72
19
91

Male

Retention
rate (after Female
three years)
Total

96.6%
88.2%
95.2%

100%
100%
100%

91.2%
100%
92.6%

❷ Globalizing Hiring Practices

DIC endeavors to attract and train employees with the skills tocompete on a global stage. DIC not only endorses global training
for Japanese employees but also actively includes foreign nationals
among new university graduates and mid-career candidates
recruited. (In fiscal year 2015, DIC hired six foreign nationals.)
Number of Foreign Employees(Including Individuals Seconded to DIC Group Companies in Japan)

Foreign nationals hired

Fiscal year 2012

Fiscal year 2013

Fiscal year 2014

18

22

28

❸ Advancing the Employment of Individuals with Disabilities

DIC is committed to creating inclusive work environments that enable
individuals with disabilities to work to their full potential. As of March
31, 2015, individuals with disabilities accounted for 2.15% of DIC’s
total labor force, exceeding Japan’s legally mandated quota of 2.0%.
Going forward, DIC will continue striving to exceed its legal obligation
by enhancing work environments to increase retention rates and byincreasing workplace accessibility.

Percentage of DIC’s Labor Force Accounted forby Individuals with Disabilities
2.30%
2.20%
2.10%

2.22%
2.15%

2.10%

(Legally mandated quota revised)

Percentage oflabor force accounted
for by individuals
with disabilities

1.90%

1.80%

Percentage oflabor force accounted forby individuals with disabilities asof March 31, 2015

2.15%

1.99%

2.00%

1.70%

❹ Reemployment after Retirement andSupport for Retirement Planning

2.20%

Japan’s legally mandated quota

’10

’11

’12

’13

’14

(Fiscal year)

Number of Reemployed Individuals(Including Individuals Seconded to DIC Group Companies)
DIC has deployed a system that facilitates
the reemployment until age 65 of individuals
Fiscal year 2012
Fiscal year 2013
Fiscal year 2014
reaching the retirement age of 60 and wishing toremain with the organization. Options available
Number of retirees (A)842439
to such individuals include full-time work, shortNumber of individuals
seeking reemployment52
16
28
time work and work sharing. The framework
Number of individuals
enables reemployed individuals to maximize theirreemployed (B)441627experience and make full use of their accumulated
Reemployment rate (B) / (A)
52.4％
66.7％
69.2％
technological capabilities and specialized expertise.
DIC also offers classes for employees within a year of retirement that helps them prepare for retirement. These classes provide
assistance with retirement planning, education regarding the national pension system and retirement lifestyle simulations.

DIC works tirelessly to promote diversity at its workplaces and among its employees. In so doing, the Company strives to create
work environments as well as develop and implement systems that enable motivated employees to fulfill their potential andcontribute to the growth of DIC and its businesses.
DIC Report 2015

71

Human Resources Management

Initiatives that Support a Healthy Work–Life Balance
DIC views work–life balance as essential to both self-realization and sustainable corporate growth. Accordingly, the Company encourages
employees to seek both a satisfying work life and a fulfilling life outside work, creating a positive cycle that yields value-added results.
DIC strives to encourage work–life balance by creating positive, supportive workplaces, notably by enhancing programs that enable people
to balance the demands of work with private commitments such as caring for children or family members who are ill. The Company has also
deployed systems that enable employees to restrict the distance they can be transferred, reduce the amount of overtime hours, encourage
employees to take annual paid leave and promote health management.
❶ Enhancing Programs to Help Employees Balance Work, Childcare,
Nursing Care and Other Private Commitments

In 1986, DIC blazed a trail for chemicals manufacturers in Japan by implementing a childcare leave program. In 2007, theCompany established work and childcare balance support programs, which introduced flexible working styles. DIC has also
set up various systems that exceed legal requirements, and has done much in workplaces to make it easier for employees toharness its systems. In fiscal year 2008, the Company acquired the Kurumin Mark, which recognizes companies that promote
initiatives designed to assist employees in raising children.
Work and Childcare Balance Support ProgramsChildcare Leave Program

The maximum length of leave is until the child reaches the age of 2 years and 6 months,
which is one year longer than the legally mandated leave period.

Leave to Assist with
Parenting Program

Male employees can take five days’ paid leave during the eight weeks following theirchild’s birth to assist with parenting.

Childcare While
Working ProgramThis program encompasses two flexible working systems. One enables employees to shorten their
daily working hours by up to three hours until the end of a child’s third year of elementary school.
The other allows employees to stagger their working hours to accommodate childcare schedules.

Economic support
systemThis system enables employees on unpaid childcare leave to borrow a portion of theirbonuses in advance.

Nursing careleave system

Employees can take such leave for up to one year, exceeding the statutory maximum of
93 days.

Nursing Care While
Working Program

Employees not wishing to take leave while providing nursing care can shorten their daily
work by up to two hours or opt for a system in which they shorten their days by two hours
before or after prescribed working hours.

Return to previous(or equivalent) position

A rule has been instituted whereby employees returning from leave return to theirprevious position or an equivalent position.

Information sharing to promote
program participation

DIC’s views on support for work and childcare balance, as well as a guide to its various available systems
and how to make use of them, are posted on the Company’s website and on its intranet.

Relocation Limitation System
In fiscal year 2002, DIC introduced a system in which as for transfers requiring relocation, regular employees have the option to accept it or not.
In fiscal year 2012, the Company established a system that allows management-level employees to limit the locations to which they will accept
transfers, making it easier for employees who are unable to accept transfers that involve relocating because of childbirth, childcare, nursing care orother responsibilities to effectively balance their work and private lives.

DIC Report 201572

Human Resources Management

Kurumin Mark Certification

Number of Employees Using DIC’s
Childcare Leave Program

In fiscal year 2008, DIC was accorded
the Kurumin Mark by Japan’s Ministryof Health, Labour and Welfare, which
recognizes companies that actively
promote initiatives that assist with childrearing.

28

40

40

31

30

30

30

31

28

24

21

20
10
0

In fiscal year 2014, 28 employees
made use of DIC’s Childcare Leave
Program, all of whom subsequently
returned to work. DIC also encourages
male employees to take leave to assist
with parenting and 57.3% of eligible
employees took such leave in the year
under review.

Number of employees
in fiscal year 2014

(Number of individuals)

’07

’08

’09

’10

’11

’12

’13

’14 (Fiscal year)

Numbers of Employees Taking Leave to Assist with Parenting(Including those Seconded to DIC Group Companies)
Fiscal year 2012

Fiscal year 2013

Fiscal year 2014

102
62
60.8％

74
43
58.1％

110
63
57.3％

Number of male employees
whose partners gave birth
Number of male employees taking leave toassist with parenting
Leave-taking rate

❷ Reducing Extreme Overwork and Encouraging
Employees to Take Annual Paid Leave

DIC has deployed an electronic system to manage on-sitehours, working hours and approved overtime hours. As ameasure to prevent extreme overtime, if an employee exceeds
the overtime limit agreed to with the employees’ union, his or
her supervisor is required to submit a report to management
confirming the work and reasons for the long hours while alsopresenting specific measures to ameliorate the situation. This
report is also shared with the union.
DIC encourages employees to take annual paid leave,
notably by recommending leave timing at each business siteand having employees plan dates for such leave.
On average, in fiscal year 2014 employees worked 12.2
hours of overtime each month and received 19.1 days ofannual paid leave, of which they took 11.0 days, for a usage
rate of 57.6%.

Average Number of Monthly Overtime Hours per Employee
Fiscal year 2013

Fiscal year 2014

9.5

12.3

12.2

Fiscal year 2012

Fiscal year 2013

Fiscal year 2014

19.3
10.7
55.4％

19.1
10.4
54.5％

19.1
11.0
57.6％

Average per individual

Annual Paid Leave Taken

Average number of days
grantedAverage number of days
taken
Usage rate

Average Years of Employment(Including Individuals Seconded to Group Companies)
Average years of employment in fiscal year 2014

❸ Average Years of Employment

DIC works to enhance job satisfaction and its
programs to ensure a healthy work–life balance. In
fiscal year 2014, just 0.9% of employees resignedof their own accord. In recent years, there has
been very little difference in the average years of
employment for male and female employees.

Fiscal year 2012

Male employees

Female employees

Overall

’ 09

’ 11

’ 13

19.5 years 18.2 years 19.2 years(Years)

25
20
15
10
5
0

’ 94
Male employees

DIC Report 2015

73

’ 08

’ 10

Female employees’ 12
Combined’ 14(Fiscal year)

Human Resources Management

V O I CE

General Affairs and HR Department

from the DIC GroupJun Tsutsumi

The support and understanding of my colleagues ensured a worry-free leave.
I decided to take advantage of the Leave to Assist with Parenting Program to take five days’ leave when my wife had our
second child. The program allows male employees to chose five days at their own discretion during the first eight weeks after
the birth of their children to assist with parenting, which made it easy for me to organize my work and plan properly. My wife
returned to her family home to give birth, so I was able to join her there for the duration of my leave. While I was there, my job
was to look after our three-year-old son. The two of us spent the days going for walks, playing together and relaxing. I think
we both felt refreshed and recharged. I was really happy to be able to reduce the burden on my wife even just a little. I admitthat I was a little concerned about my responsibilities at work beforehand, but my colleagues were very understanding andsupportive. All in all, it was a rewarding experience for my entire family.

Caring for Mental Health
DIC works to correct problems that have been shown to negatively affect psychological well-being, implementing measures to combat
harassment and enhance the management of work hours to prevent extreme overwork, among others, thereby ensuring that its labor
management practices comply with legal requirements. DIC has also established a mental health program under the direction of an in-houseoccupational health psychologist, under which it is promoting comprehensive efforts to address mental health care issues, including providing
ongoing training to facilitate effective line care* and equip employees with self-management skills, installing an internal help desk andproviding access to outside counselors, and providing support to ensure a smooth return to work for employees taking leave.
* Line-care training: Training for supervisors to help them recognize promptly when an employee is unwell and respond appropriately by, for example, recommending guidance or counseling or making workplace improvements.

Topic

Saitama Plant earns Workplace Wellness Starter Certificate

DIC’s Saitama Plant works actively to address mental health issues in the workplace. The plant recently earned a Workplace Wellness
Starter Certificate, which is given by the Workplace Wellness Forum in recognition of workplaces that promote the mental and physicalwell-being of employees. The efforts of both labor and management at the plant to create a workplace conducive to wellness, primarily
through the creation of specific task forces, were cited in the Forum’s rationale for certifying the plant.

Workplace Wellness Starter Certification Program
Organizations promoting efforts to create workplaces conducive towellness can apply to the Workplace Wellness Forum for certification
under its Workplace Wellness Starter Certification program. In evaluating
applications, the Forum looks at employees’ work engagement, thecohesiveness of workplace identity and the effectiveness of measures
implemented. (The Workplace Wellness Forum is sponsored by the Japan
Productivity Center and the University of Tokyo.)

DIC Report 201574

Human Resources Management

Securing and Fostering Human Resources❶ Ability-Oriented Qualification System and Fair and Impartial Treatment

To enable all employees to fulfill their potential in jobs suited to their abilities, and to ensure that their efforts are reflected appropriately in theirtreatment, DIC has consolidated its numerous employee qualification systems irrespective of job classification and educational credentials. The
selection of employees to recommend for qualification is done through screening based on objective standards, thereby guaranteeing equal
opportunities for promotion to all motivated, capable employees.
Personnel evaluation and remuneration systems designed to enhance job satisfaction ensure that abilities and achievements are assessed
appropriately and reflected in a timely manner in their treatment. Of note, DIC has introduced MBO into its personnel evaluation system, a goalsetting management tool that promotes both corporate growth and employee development. Results of individual evaluations are fed back in fullto employees, including reasoning behind determinations—a transparent process that ensures employees are largely satisfied with evaluation
results.
DIC’s Personnel Evaluation System

Settingofdivisiontargets

Setting ofindividual
targets

Interview

Executionofduties

DIC’s training system comprises programsin six categories. These programs are
based on practical curricula that focus on
honing workplace skills and acceleratingchange in line with business strategies. In
fiscal year 2015, the Company will reinforce
its global human resources developmenttraining programs.

Process
evaluation

Careerdevelopment
sheet

Individual❷ Training System

Results
evaluation

Semiannual
evaluation

Superior

Annualevaluation

Feedback
Bonus

SalaryPromotion

Skillsdevelopment
Appropriate
appointment

DIC Training Programs
Management-leveltraining

DIC Management School, DIC Business College, training for newly
appointed CEOs of Group companies, media training

Global human resources
development

Pre-departure training for employees assigned to overseas posts,
training to enhance English-language communications skills, training in
how to compose e-mails in English, Global Challenge Program

Level-specific training

Level - spec if ic training for newly promoted employees, line
management training, training for coaches to instruct new employees,
follow-up training for new employees and others

Department- and jobspecific training

Production department-specific human resources development program,technical department-specific human resources development program,
programs to foster human resources for sales departments and support
departments

On-the-job training

Overseas trainee program, domestic trainee program, trainee programfor non-Japanese employees, practical training for new recruits

Self development

Correspondence courses (approximately 220 different courses areoffered), e-learning courses, in-house seminar courses, Skype-based
English conversation courses, training for the TOEIC Institutional
Program(IP) Test

DIC Report 201575

Human Resources Management

Global Human Resources Development❶ Training for candidates being considered for overseas assignment(global human resources development)
Practical training built around anticipated global business situations; training to enhance English-language
communications skills, which seeks to improve language abilities; pre-departure training for employees assigned
to overseas posts❷ Training in how to compose e-mails in English*(global human resources development)
Training designed to equip employees with the tools necessary for global communications

Participants in the Global Challenge Program❸ Global Challenge Program (global human resources development)
Training aimed at cultivating a global perspective and an understanding of other cultures❹ Skype-based English conversation courses* (self development)
Informal English conversation classes with a native English speaker via Skype that can be scheduled to suit theindividual’s schedule❺ Training for individuals planning to sit for an official TOEIC test(the TOEIC Institutional Program (IP) Test) (self development)
Employees have two opportunities annually to take the TOEIC IP Test in-house.
* Newly introduced in fiscal year 2015

On-the-Job Training
DIC offers on-the-job training, the purpose of which is to foster global human resourcesby dispatching them to gain experience working at a DIC Group company overseas. In
fiscal year 2014, 18 trainees were dispatched to nine countries and territories, including
the United States, the PRC and Singapore. Eligibility for the program is not limited to
employees in Japan. DIC Group companies in Japan welcome trainees from overseas
Group companies, giving them a chance to deepen their understanding of Japaneseculture, commercial practices and business manners, as well as contributing to theglobalization of the Japanese company.

V O I CE

Employees and trainees at the offices of a DIC Group
company in Singapore

Polymer Processing Group 1

from the DIC GroupI continue working to broaden my global perspective.
I originally decided to take part in the Global Challenge Program because I had always felt that my English was poor. I guess I sort ofequated “global” with the ability to speak English, but the more classes I took the more I came to realize that a global perspective isreally the ability to cast aside preconceived notions and welcome the idea of diversity. Whether you are working in Japan or overseas,
having such a perspective is really important because you come into contact with many different people every day. Since completingthe program, I have continued to study English daily. In my department, we have also established a global-themed workshop. I lookforward to honing my skills to the point where I can truly be considered a “global” human resource.

DIC Report 201576

Saori NaraSupply Chain Management

Core and Category-Specific Themes

Global Supply Chain Management
Goals and Achievements of Major Initiatives
Objectives of initiatives

Create a foundation forfair purchasing practices.

Promote CSR procurement.

Goals for fiscal years 2014–2015
・In the PRC, hold explanatory meetings
for DIC Group printing inks companies,
conduct CSR procurement assessments
for suppliers and provide feedback.
・In Southeast Asia, begin preparations for
CSR procurement assessments using
version 2 of the DIC Group Supply-chain
CSR Deployment Guidebook.

Achievements in fiscal year 2014

CSR procurement assessments wereconducted for and feedback provided to 25
suppliers of DIC Group companies in the
PRC.

・Implement a second round of CSR ・CSR procurement assessments wereconducted for approximately 400
procurement assessments in Japan in line
suppliers in line with version 2 of the DIC
with version 2 of the DIC Group SupplyGroup Supply-chain CSR Deployment
chain CSR Deployment Guidebook.
Guidebook. Feedback was provided to all
Confirm the status of CSR procurement andsuppliers assessed.
improvements since the previous round andprovide feedback to all suppliers assessed. ・On-site inquiries were conducted for 9 of
the 43 assessed suppliers for which such・Continue on-site inquiries for certain
suppliers.
an inquiry was deemed appropriate.

Evaluation

★★★

★★

Goals for fiscal year 2015

・Hold briefings on CSR procurement
assessments at DIC Group companies
in Greater China, Taiwan and Japan.
・Link Sun Chemical Group and DIC
Group CSR procurement efforts.

・Continue to conduct CSR procurement
assessments for suppliers in line withversion 2 of the DIC Group Supplychain CSR Deployment Guidebook.
Provide feedback to all suppliers
assessed.
・Continue on-site inquiries for certain
suppliers.

Basic ApproachWith the aim of ensuring its extended supply chain functions in a socially responsible manner, the DIC Group established the DIC Group Universal
Purchasing Policy in 2008, based on which it also formulated purchasing management regulations, thereby creating a solid purchasing configuration.
In 2009, the Group formulated the DIC Group CSR Procurement Guidelines, which clarify issues it expects suppliers to address. The Group promotes
CSR procurement across its supply chain by ensuring that all suppliers understand and abide by these guidelines.
The DIC Group has operations in Japan, the Americas and Europe, Greater China and the Asia–Pacific region. Group companies in different
regions collaborate to promote global procurement in a manner that benefits the entire supply chain.

Extending the Reach of the DIC Group CSR Procurement Guidelines
In addition to its common global CSR procurement
guidelines, the DIC Group has established the DIC Group
Green Procurement Guidelines, the goals of which are
to compel suppliers to comply with laws and regulations
governing raw materials, promote the comprehensive
management of chemical substances and work tolower their environmental impact. The Group promotes
awareness among suppliers by, among others, using the
DIC Group Supply-chain CSR Deployment Guidebook andconducting assessments and on-site inquiries.

The DIC Group CSR Procurement Guidelines
1. Compliance with laws and social norms
2. Respect for human rights and consideration for work environments
3. Safety and hygiene
4. Promotion of sound business management
5. Consideration for the environment
6. Information security
7. Appropriate quality and safety and improved technologies
8. Flexible attitude to ensure stable supplies and respond to change
9. Contribution to local communities and society
10. Promoting CSR and deploying it in the supply chain

DIC Report 201577

Supply Chain Management

Capitalizing on the DIC Group Supply-chain CSR Deployment Guidebook
The DIC Group Supply-chain CSR Deployment Guidebook, which includes the DIC Group Universal Purchasing Policy, the DIC GroupCSR Procurement Guidelines, the DIC Group Green Procurement Guidelines and related self-evaluation sheets, i.e., questionnaires,
was originally published in December 2009. The DIC Group published version 2 of the guidebook—which includes new sections on
conflict minerals and biodiversity, added in response to changing social imperatives—in July 2013. Version 2 further segments the DIC
Group's 10 CSR Procurement Guidelines into 46 issues, providing explanations of each issue and self-evaluation questionnaires anda five-level marking sheet. Answering the questions makes it easier for suppliers to gauge their CSR procurement status. The DIC
Group Green Procurement Guidelines list seven laws and regulations with which DIC Group suppliers must comply and details theGroup’s criteria for selecting raw materials suppliers.

Self-Evaluations

Conducting On-Site Inquiries to Advance CSR

Feedback sheet

Assessment Distribution Chart
Number of companies

The DIC Group asks suppliers to complete and submit self-evaluation questionnaires
covering 46 issues on five levels. The Group then prepares radar charts comparing
responses received from all suppliers surveyed and provides feedback. Feedback
sheets make it easier for suppliers to confirm their CSR procurement status within the
DIC Group supply chain and to apply that information to future CSR initiatives.
The Group also asks suppliers to complete and submit DIC Group Green
Procurement Guidelines questionnaires, confirming that they do not use any of thesubstances prohibited under the seven laws and regulations listed in the guidelines
in either their production facilities or their plants, as well as to confirm their own
environmental management status.
From fiscal year 2010 through fiscal year 2013, the DIC Group conducted CSR
procurement assessments—comprising self-evaluations and feedback—for 439
suppliers, acting in line with version 1 of the DIC Group Supply-chain CSR Deployment
Guidebook. From November 2013 through March 2015, the Group conducted a second
round of assessments for 429 companies using version 2 of the guidebook.

Following the self-evaluation stage, the DIC Group conducts on-site inquiries for certain
suppliers to help them further their understanding of and commitment to CSR. Here, theGroup asks suppliers for their appraisal of their responses to the 46 questions and thenpresents its own findings. Through the exchange of views, the Group seeks to eliminate
gaps between suppliers’ assessments and its own stemming from, among others,
differences in operating scale or the presence or absence of a dedicated CSR team. The
Group may ask suppliers to address significant problems. Conversely, suppliers may havequestions about DIC’s CSR initiatives. Accordingly, the Group endeavors to ensure that
this is a beneficial process for both parties. Having prepared reports summarizing onsite inquiry results, the Group provides
feedback to suppliers for whom
inquiries were conducted. From fiscal
year 2011 through fiscal year 2014,
the Group identified 43 suppliers as
warranting an on-site inquiry. The DIC
Group thus encourages responsible
procurement between the Group andsuppliers through a comprehensive
process that encompasses multiple
On-site inquiry
steps, from questionnaires to on-siteinquiries.
DIC Report 2015

78

250
200
150
100
50
0

2.0～2.5 2.5～3.0 3.0～3.5 3.5～4.0 4.0～4.5 4.5～5.0

ScoresOn-site inquiry reportSupply Chain Management

Promoting CSR Procurement on a Global Scale
The DIC Group uses English- and Chinese-language versions of the DIC Group Supply-chain CSR Deployment Guidebook to promote
CSR across its global supply chain. In fiscal year 2011, the Group held briefings focusing on CSR procurement and the assessments
it conducted for 21 suppliers in the PRC and three in Taiwan, while in fiscal year 2013 it held such briefings for eight suppliers inSoutheast Asia.
In fiscal year 2014, regional headquarters in Greater China and the Asia–Pacific region
sent self-evaluation questionnaires to 25 in Greater China and 45 suppliers in Southeast
Asia, while the parent company in Japan has conducted assessments of 68 overseas
suppliers. The Group also conducts on-site inquiries overseas.
The Sun Chemical Group, which functions as the DIC Group’s regional headquarters
for the Americas and Europe, undertakes its own efforts to promote awareness of CSR
procurement, using an independent purchasing manual into which the DIC Group CSR
Procurement Guidelines have been incorporated.
Briefing in the PRC

Global Procurement
Initiatives

DIC Group Global Purchasing Configurations

The DIC Group continues toleverage collaboration among Group
companies in Japan, the Americas
and Europe, Greater China and theAsia–Pacific region with the aim ofcreating an optimal global supply chain
configuration, thus ensuring that its
procurement practices are safe, reliable
and worthy of its customers’ trust.

DIC

Sun Chemical

Three-pronged configuration encompassing Japan,
the Asia–Pacific region and Greater China

Two-pronged configuration encompassing
the Americas and Europe

Global purchasing officers

Global category leadersJapan

Asia–PacificregionGreater China

Americas

Globalcategory leaders

EuropeGlobalcategory leaders

Globalcategory leaders

Collaboration

Globalcategory leaders

Globalcategory leaders
Globalcategory leaders

Conflict Minerals Survey
In July 2010, the Dodd–Frank Wall Street Reform and Consumer Protection Act, which contains a provision requiring companies to report on
their use of conflict minerals, was signed into law in the United Sates. The DIC Group recognizes the importance of addressing the issue of
conflict minerals. As stated in its Basic Policy concerning Conflict Minerals, presented on its global website, the DIC Group refrains from using
gold, tantalum, tungsten and tin, which are classified as conflict minerals, that is, minerals mined in conditions of armed conflict and abuse in
the Democratic Republic of the Congo and its neighboring countries. Moreover, should any raw materials purchased from third-party suppliers
be found to contain conflict minerals, the DIC Group will immediately terminate procurement thereof. The DIC Group is using the Conflict
Mineral Reporting Template, created by the Electronic Industry Citizenship Coalition (EICC) and the Global e-Sustainability Initiative (GeSI), to
conduct conflict minerals audits across its entire supply chain, an ongoing effort. As of December 2014, the Group had received responses formore than 90% of the items currently procured by Group purchasing departments.

V O I CEManager, Purchasing and Logistics Divisionfrom the DIC GroupOn-site inquiries help build trust and understanding.
I accompanied officials when they conducted on-site CSR inquiries at the importers that I am in charge of and verified the resultsof CSR procurement assessments submitted by those companies. I initially had no idea what sort of CSR initiatives I might find—after all, trading houses are not manufacturers. In fact, all of the importers I visited maintain CSR programs as a key component of
their corporate policy. Exchanging opinions with suppliers on assessment results helped enhance mutual understanding and I foundthe opportunity to see different perspectives on CSR, particularly in areas such as quality control and supply stability for imported
materials, especially useful.

DIC Report 201579

Toshio Yamagami

Business Models that Respond to Social Imperatives

Themes that Demonstrate Unique Capabilities

Establishing Solutions-Oriented Businesses
Goals and Achievements of Major Initiatives
Objectives of initiatives

Goals for fiscal years 2014–2015
Cultivate solutions-oriented businesses
Anticipate new social needs arisingfrom global megatrends and plan new
businesses that provide solutions tothose needs.

Propose solutions-oriented businesses
that respond to social imperatives.
Strengthen the DIC brand
Make use of product guidebooks,
exhibitions and other communications
tools and opportunities to promoteawareness of the DIC brand.

Achievements in fiscal year 2014
Promising new markets were identified infive key areas—resources, materials andenergy; logistics and industrial equipment;
electronic and electrical equipment; medicalcare and medical devices; and general
consumer products—and social needs andtechnological themes were abstracted.
Product guidebooks became wellestablished as an effective tool forcommunicating DIC’s comprehensive
capabilities, namely, its products
and technological prowess, which
enhanced brand appeal. Participationin exhibitions also helped strengthen
the DIC brand by raising visibility andhighlighting comprehensive capabilities.

Evaluation

Goals for fiscal year 2015★★

Cultivate solutions-oriented businesses
Anticipate new social needs arisingfrom global megatrends and plan new
businesses that provide solutions tothose needs.

★★★

Strengthen the DIC brand
Make use of product guidebooks,
exhibitions and other communications
tools and opportunities to promoteawareness of the DIC brand.

Capitalizing on the Changing Needs of Society
The DIC way of doing business starts with listening to what its customers say. The cornerstone of the DIC Group’s approach is to swiftly grasp
the concerns of its customers and, by identifying those shared by multiple customers, to gain insights into emerging social needs and offer
appropriate solutions. While the starting point is the voice of its customers—an approach known as “customer-in”—the Group also takes a“market-in” approach, paying heed to issues of global significance, such as global warming, with the aim of predicting trends and anticipating
the future needs of society.

Business Activities with Roots in Issues of Concern to Society
The principal factor behind efforts to advance the use of electric vehicles (EVs) is the need to address crucial issues such as global warming
and fossil fuel depletion. The practicality of EVs will depend on the resolving of a number of key technological challenges. Of particular note, it
is crucial to increase the capacity of storage batteries, reduce the size and weight of powertrains*1 and improve the durability of fuel cells. With
the goal of contributing to the sustainability of society, the DIC Group continues to promote research aimed at addressing such challenges,
based on which it is developing technologies that will yield concrete, viable solutions, including innovative materials that boost battery capacity
and improve the performance of power devices*2. In the information and communications field, the Group is promoting the development ofmaterials for printed electronics in response to needs arising from the growing trend toward wearable*3 and flexible*4 devices, which reflects
the increased sophistication of information networks. In addition to automobiles, information and communications and other fields thatnecessitate advanced technologies, the Group is responding to social imperatives in such areas as packaging, graphics and the field it has
dubbed “life and living,” as well as proposing new businesses with the purpose of further evolving its business model.
*1 In a motor vehicle, the powertrain is the group of components that transform stored energy into kinetic energy for the purpose of propulsion.
*2 A power device is a semiconductor used as a switch or rectifier in power electronics.
*3 Wearable devices are incorporated into accessories such as watches and glasses and worn on the body rather than carried like traditional mobile devices such as smartphones and tablet computers.
*4 Flexible devices are bendable, rollable and more durable than conventional devices made with glass or other stiff, breakable materials.

DIC Report 2015

80

Business Models that Respond to Social Imperatives

Enhancing Brand Strength
Established as a printing inks manufacturer, DIC has expanded its business byleveraging its capabilities in organic pigments and synthetic resins to develop
a diverse portfolio of innovative products. The Company’s wealth of elemental
technologies is what makes these products possible. To encourage broader
customer awareness of its distinctive products and technologies, DIC publishes
and distributes market-oriented product guidebooks. DIC also strives to enhance
the DIC Group’s brand through participation in trade shows such as FINETECHJAPAN and Tokyo Pack.
The DIC Group’s booth at Tokyo Pack 2014

Identifying and Fostering Promising Markets Based on
Anticipated Social Needs and Market Forecast
With the aim of realizing sustainable growth over the medium to long term, the DIC Group has identified promising new markets arisingfrom social imperatives in five key areas—resources, materials and energy; logistics and industrial equipment; electronic and electricalequipment; medical care and medical devices; general consumer products; and construction infrastructure — and is striving to assess
its ability to cultivate demand in each. The Group is also working to identify market-specific and shared technologies, as well as todiscern technological issues that must be addressed, allowing it to accurately gauge growth and technology development potential anddetermine which of these markets it will enter.

Global Efforts to Expand Business Domains andCultivate Next-Generation Businesses
Once it has resolved provisionally to enter a promising new market, the DIC Group sets about clarifying necessary technologies,
systems and services, as well as key development themes. Technology and sales departments work together to verify theoreticalvalue and ascertain the appropriate opportunity to enter the market and, bearing in mind its position in the supply chain, aim to create
an optimal business model that will enable it to provide innovative solutions to its customers and build a robust business.

Leveraging the DIC Group’s Matrix-Like
Corporate Organization to Expand Operations
To enhance convenience for customers and encourage awareness of the DIC Group’s comprehensive capabilities, namely, its products
and technological prowess, DIC continues to promote a variety of organizational reforms. With the aim of shifting from a productspecific to a market-focused management approach, in fiscal year 2012 the Group adopted a matrix-like corporate organization, which
positions product divisions on the vertical axis, thereby eliminating the organizational barriers that previously divided these divisions,while the sales administrative divisions, the Production Administrative Division and the Technical Administrative Division—further
subdivided by business area—are positioned on the horizontal axis, a configuration designed to increase synergies and reinforce
collaboration. This has also created a two-pronged technological development configuration comprising the Technical Administrative
Division, which promotes research efforts designed to yield results short to medium term, and the Corporate R&D Division, which
focuses on efforts with medium- to long-term time frames.

DIC Report 201581

Business Models that Respond to Social Imperatives

Corporate
Strategy Division

Processed
Products

Solid
Compounds

LiquidCompounds

Polymers

Printing Inks

Sales administrative
divisions

Fine
Chemicals

Product divisions
President
and CEO

Advanced Technology

Corporate Planning Department
Corporate Marketing Department

Life & Living

Corporate Communications Department
Finance andAccounting Division
Purchasing and
Logistics Division
General Aﬀairs andLegal Division

Packaging & Graphics

Production
Administrative Division
Technical
Administrative DivisionCorporate R&D DivisionV O I CEManager in Charge, Corporate Marketing Department

from the DIC GroupOur goal is to capitalize on new technologies to develop robust new businesses.
The Corporate Marketing Department focuses on fostering new markets over the medium to long term. Our team
got off to a lively start in fiscal year 2015, welcoming new members whose experience is in business planning.
We are charged with predicting new markets based on emerging needs arising from global megatrends—atask we approach from four perspectives: impact on the earth and natural environment, economic and political
implications, legal and regulatory issues and technological considerations—and collaborating with technicalgroups to develop essential new technologies. Under DIC’s matrix-like corporate organization, we are also
focusing on the establishment of robust new businesses based on such new technologies. We hope to realize
viable solutions in a variety of areas including resources, materials, energy, transport equipment, medical careand medical devices.

DIC Report 2015

82

Hiroko Sakurai

New Technology Development and Value Creation

Themes that Demonstrate Unique Capabilities

Proposing Solutions that Leverage Elemental Technologies
Goals and Achievements of Major Initiatives
Objectives of initiatives

Goals for fiscal years 2014–2015

Achievements in fiscal year 2014

Evaluation

Establish framework for overseas R&D
bases.

In fiscal year 2014, printing inks technicalcenters were established and commenced
operations in the Asia–Pacific region(Thailand) and the PRC. In January 2015, a
polymer technical center was established in
the Asia–Pacific region (Thailand).

★★

Enhance global R&D configuration.

Ensure the swift launch of products thatcombine multiple technologies.

Limited-term projects were organized
and resources allocated thereto.
Approximately 10 new development
themes suggested through this initiative
have passed the proposal stage andbeen passed on to the pertinent technicaldivision, which will explore commercial
viability.

★★

Ensure the swift launch and firm salesof products that combine multiple
technologies.

・Promote environment-related research
themes.
Promote development of environmentfriendly products and services.
・Ensure the swift launch of environmentfriendly products.

Environment-friendly products accounted
for 52% of all DIC Group products.

★★

・Promote environment-related research
themes.
・Ensure the swift launch of environmentfriendly products.

Enhance ability to develop products andtechnologies that facilitate contributions
to a sustainable society.

Goals for fiscal year 2015

Achieving Sustainable GrowthWith the aim of achieving its Color and Comfort by Chemistry management vision, the DIC Group is leveraging its core technologies, including
those in the areas of optics and color, organic molecular design and polymer design, as well as its elemental technologies in such areas assynthesis, compounding and formulation, and surface treatment, to develop high-value-added products. The Group is also building a portfolioof next-generation products and new technologies that will support sustainable growth for such key applications as LCDs, electronics, digitalprinting and packaging, by integrating technological resources originating across the Group.

The DIC Group’s New/Elemental Technologies and Target Markets
Packaging

Digital printing
Target markets

Core productsElectronics

Coatings

Optronics materials

Packaging materials
Organic synthesisBasictechnologies Polymer synthesis

Crystallization Organic molecular

High-performancecomposites

Displays

Coloring

designPolymer
designResin curing
Liquid/liquid dispersion

Optics and Technologies
Adhesion
Dispersion Solid/liquid dispersion
color
Applicability
Surface treatment
Compounding formulationassessment

Liquid inks

（ Coating/printing） Rheology/molding

Film formation

Adhesive materials

EnergyMolding

Sensory materials

DIC Report 201583

Surface protection
materials

Living environments

Infrastructure buildingNew Technology Development and Value Creation

Specific Initiatives and Achievements
The DIC Group is encouraging a shift toward materials with a reduced environmental impact—notably water-based and solvent-freematerials—and is advancing the development of environment-friendly products for use in displays and packaging, as well as for infrastructurerelated applications, that help improve the environmental performance of the finished products in which they are used.

Products for Use in Displays and Electronics Equipment
In the area of products for flat-panel displays (FPDs), the DIC Group has developed an innovative green pigment for color filters used in LCDs for ultra-high-definition
televisions (UHDTVs) and other next-generation high-resolution displays that achieves exceptional brightness and coloring power, thereby facilitating outstanding color
reproduction. Products developed by the Group for use in displays for smartphones, tablet computers and other devices, include an ultrathin adhesive tape—approximately
half the thickness of existing products—for sheets used to dissipate heat from electronic components, as well as antiscattering adhesive films, waterproof tapes and lightshielding tapes for smartphones. Newly developed materials include a resin for use as an optical clear adhesive (OCA) tape for laminating touch screens that is cured ina two-stage process using heat and UV light, a new type of epoxy resin for semiconductor encapsulation materials that achieves excellent reflow crack resistance and an
epoxy resin hardener for high-frequency integrated circuits that boasts low dielectric properties and other key performance features.

Products for Packaging and Coating Applications
In printing inks, recent development efforts have focused on products that are both environment-friendly and safe, including
UV-curable offset inks and gravure inks for food packaging. These include products for food packaging, such as a solventfree adhesive for flexible packaging that boasts superb compatibility with inks sold to customers around the world and anadhesive with oxygen barrier properties that complies with the European Commission’s Food Contact Materials regulations. In
coextruded multilayer films, the DIC Group developed a new co-extrusion multilayer cast film for polypropylene food containerfor daily dish. Aimed at supermarkets and convenience stores, this new film offers an excellent seal that extends shelf life, as
well as antifogging properties—enhancing the visibility of package contents—and easy opening. Another focus is waterborne
products, including materials for automobile seats and finishes for instrument panels and door trim. Of note, the Group is
exploring the potential for marketing an instrument panel and door trim finish that delivers excellent adhesion to difficult-to-bondolefin materials for nonautomotive applications.

Products for Infrastructure-Related Applications
Addressing the deterioration of aging roads, bridges and other concrete structures has become a major social imperative.
Recognizing the urgency of this issue, the DIC Group recently developed a resin for use in repairing such structures thatdelivers superior adhesiveness, even for structures that are water saturated as a consequence of rain or location in a waterway.
Another newly developed product is a one-component urethane for use in waterproofing coatings with a resin base thatcomplies with JIS A6021, the Japan Industrial Standards (JIS) benchmark for high-strength structural coatings.

A Global Framework for Product Development
To maximize global R&D resources, DIC’s Technical Administrative Division and Corporate R&D Division cooperate with the R&D componentsof DIC Group companies around the world, including DIC Graphics Corporation; the Sun Chemical Group’s research centers in the UnitedStates, the United Kingdom and Germany; and the China R&D Center in the PRC. In fiscal year 2014, the Group established two printing inks
technical centers, one in Thailand for the Asia–Pacific region and one in the PRC, as well as a PPS technical service center in the PRC. In
January 2015, the Group opened a polymer technical center in Thailand for the Asia–Pacific region.
The DIC Group works to leverage the capabilities of Group companies to promote R&D in line with a variety of sustainability-oriented
development themes. Of particular note, DIC and the Sun Chemical Group are collaborating in the development of offset inks and coating
materials with gas barrier properties for customers in Asian markets, efforts that have already led to the commercialization of numerous
promising products.

DIC Report 201584

New Technology Development and Value Creation

The DIC Group’s R&D Configuration
Technical
services

Domestic and overseas
DIC Group companies, including:Technical Administrative Department
Technology Planning
Department

Technical divisions

R&D aimed at improving
existing products

Fine Synthesis, Polymer, Adhesives,
Dispersion, Polymer Processing,Coating & Applied Materials

R&D aimed at developing
new productsIntellectual
Property Center
Product Safety &Regulatory Group

Research aimed atcommercializing
newly developed
products

Analysis Center

Product Innovation Center

Shanghai EP Technical Service Center
Printing Inks Technical Center̶Asia Paciﬁc
Printing Inks Technical Center̶China
Polymer Technical Center̶Asia Paciﬁc

DIC Graphics
Corporation

Sun Chemical
Group

etc.
Basic research
Investigative
research

Corporate R&D Division
Core Value Research CenterCore development projects

Advanced Characterization
Research Center

Process Engineering Research Center

China
R&D Center

Technology Research Group

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

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

Promoting Environment-Friendly Products
Conscious always of the importance of ensuring its products are environment-friendly, DIC
promotes the development of products and new technologies that are useful to society and works
to increase the weighting of environment-friendly products in its portfolio, by reducing the volumeof hazardous substances it uses, focusing on products that are less hazardous and products thatfacilitate recycling, and realizing safer production processes that generate less waste and use
less energy. DIC also conducts environmental assessments on a continuous basis and strives tomaintain a solid grasp of laws and regulations in different countries and territories and of trends
in environmental measures, thereby ensuring its ongoing ability to engineer products that comply
with diverse regulations governing the use of chemical substances in different markets. In fiscal
year 2014, environment-friendly products accounted for 52% of all products put out by DIC andits subsidiary DIC Graphics Corporation.

Evaluation Sheet for Environment-Friendly Products
Department:
Product to be Evaluated:
Evaluation
Certifying Standards
Item

Prepared by:

Prepared on:
Average off

Description

Coefficient

Sub total

EnergyReduction of energy inConsumption
production, transportation, etc.
Reduction of use of nonMaterials to
renewable materials, nonbe Used
recyclable materials, etc.
Hazards

Product with lower toxicity, etc.

Amount of
Waste
Generated

Reduction of environmentallyconcerned substances, etc.

Remarks:
Evaluator

Life Cycle Assessments: Currently Under Consideration
In recent years, manufacturers have been required to quantify their consumption of nonrenewable resources and their emissions of substances thatnegatively affect the environment. In response to this and other trends driven by common concerns, DIC is currently considering the introduction of life
cycle assessment (LCA) initiatives to ensure it fully grasps the various environmental impacts of all DIC Group products, as well as the adoption of theGreenhouse Gas Protocol’s*1 Scope 3* 2 standard.
*1 The Greenhouse Gas Protocol, or GHG Protocol, is a suite of standards for calculating and reporting of greenhouse gas emissions.
*2 Scope 3 is the GHG Protocol’s standard for calculating indirect greenhouse gas emissions resulting from production, transport, business travel and commuting, among others, across entire supply chains.

V O I CEfrom the DIC Group

Assistant Manager, Dispersion Technology Group 9, Dispersion Technical Division 1

We are working to develop products that boast outstanding performance features and are environment-friendly.
One of the best examples of a DIC Group product that is both environment-friendly and delivers a superior performance is our VOC-free UV-curable printing inks. While theincreasing predominance of electronic media has slowed growth in demand for printing inks in general, demand for UV-curable inks for use in packaging applications remains firm,
as a consequence of which these inks have become one of our principal products in the offset inks market. In recent years, awareness of the need to protect the natural environmentand rising concern regarding product safety have spurred an increase in the use of environment-friendly energy-saving UV and UV-LED lamps, further drawing attention to theseinks that coat cleanly and safely, underscoring fundamental changes in operating conditions for printing inks manufacturers. In response to such changes, we are capitalizing on the
DIC Group’s proprietary polymer and pigment engineering technologies to develop products that boast outstanding performance features and are environment-friendly.

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Keisuke Wakahara

Harmony with the Community and Social Contributions

Themes that Demonstrate Unique Capabilities

Adding Color and Comfort to Lifestyles
Basic Approach to Social Contribution
Based on its Guidelines for Social Contribution Activities, established in fiscal year 2009, the DIC Group promotes harmony with local communities
and individuals through activities aimed at building a strong relationship with society.

The DIC Group’s Guidelines for Social Contribution Activities
In line with its Color and Comfort by Chemistry management vision, the DIC Group will promote social contribution initiatives in three areas: businessactivities, culture and education, and communities and society.

Business activities
The DIC Group will offer products and services that contribute to the development of a sustainable society and protection of the global environment
from the viewpoint of “CSR through business activities.”
Culture and education
The DIC Group will engage in activities that will contribute to the development and promotion of culture, the arts, science and education in the areasof the culture of color and chemical science, including the development of next-generation human resources.
Communities and society
The DIC Group will strive to coexist harmoniously with local communities to develop a relationship of mutual trust. Moreover, the Group will provide
an environment that enables employees to engage in voluntary contribution activities in their respective local communities.

Examples of Recent Initiatives
Publication of the Guidebook for the Color Universal Design–Recommended Color Set
The DIC Group is actively involved in R&D in the area of color universal
design (CUD), as well as in expanding public awareness and understandingof CUD’s importance. In November 2013, research conducted by the Group—in cooperation with the Japan Paint Manufacturers Association, the Industrial
Research Institute of Ishikawa and the Color Universal Design Organization
and under the supervision of the University of Tokyo—published the Guidebook
for the Color Universal Design–Recommended Color Set. In developing thiscolor set, participating organizations capitalized on their particular expertise incolor vision characteristics to verify and adjust proposed colors, a process thatfacilitated the creation of a set of colors that are relatively easy to distinguishregardless of ability to see colors and can be reproduced using printing inks,
coatings and digital imaging devices. The set encompasses 20 easy-todistinguish colors: nine high-saturation accent colors suitable for publications
design, printed text and other comparatively small surfaces; seven colors
appropriate for broader surfaces such as directories and maps; and four
achromatic colors easily distinguished from the preceding 16 colors, thereby
ensuring information is conveyed accurately, and usable in printing inks,
coatings and digital imaging devices. (Two additional alternative colors areincluded for coatings.)

DIC Report 201586

Guidebook for The Color
Universal Design–
Recommended Color Set

Harmony with the Community and Social Contributions

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 scienceamong children, DIC Corporation and DIC Graphics Corporation conduct visiting science labs at public elementary schools. Through this program,which focuses on, among others, experiments in pigment synthesis and offset printing, the Group seeks to spark children’s interest in science andencourage them to realize the close relationship between science and their everyday lives.
In fiscal year 2014, the DIC Group’s visiting science lab program was nominated in several categories in the 2014 CSR Initiative Award in Education*,sponsored by Tokyo-based Leave a Nest Co., Ltd., winning the Special Jury Award and finishing third among 28 entries in the Award for CSR Initiatives
in Education Selected by Junior and Senior High School Students category.
* The CSR Initiative Award in Education comprises the Award for Visiting Labs and Lectures for Elementary School Children and the Award for CSR Initiatives in Education Selectedby Junior and Senior High School Students, which are voted on by, respectively, teachers and junior and senior high school students from across Japan. In fiscal year 2014, the DIC
Group’s program was one of 28 entries, eight of which were nominated for the Special Jury Award.

DIC’s 2014 CSR Initiative Award in Education certificatesChildren participating in a pigment synthesis experimentVice-Principal, Itabashi Municipal No. 2 Elementary School

Comment

Kaoruko Tanaka

The visiting science labs at our school emphasize the role of science in children’s lives.
Our school has enjoyed hosting visiting science labs conducted by DIC and DIC Graphics since 2011. When we evaluate offers bycorporations to organize educational programs for us, we have thee criteria: Is the proposed program safe? Does it align with the relevant
curriculum unit? Is the school’s burden for preparation minimal? The DIC and DIC Graphics program ticks all three boxes for us. The focus ison showing children that studying science is useful in everyday life and the children are always delighted by the departure from their ordinaryclasswork. Each employee instructor works directly with three or four students, which I particularly appreciate as it gives children a chanceto speak to the instructor directly and ask questions about the career of a scientist. I am a firm believer that initiatives such as this, which
involve companies with deep local roots partnering with schools, play a vital role in community development.

Initiatives Led by the Central Research Laboratories
The Central Research Laboratories offers a variety of programs in such uniquely DIC
topics as synthesis and chromatics to the students of local schools. In September 2014,
for example, students at Chiba Prefectural Sakura High School, a designated Super
Science High School*, were invited to the Central Research Laboratories to participate ina lab lesson on the theme of “synthesis and craftsmanship.” Led by researchers from thefacility, the event—which took place in a research laboratory—included an introduction toresearch conducted using state-of-the-art analytical equipment, a hands-on lesson on theuse of said analytical equipment, a lab in which students experimented with synthesizingorganic pigments and a lecture on DIC products, and was designed to help students
better understand the concept of craftsmanship as it pertains to science. Lecturers also
incorporated a career education component into the event, taking time to talk to interested
students about the challenges and rewards of being a researcher.
* Super Science High School is a designation awarded by Japan’s Ministry of Education, Culture, Sports, Science and Technology (MEXT)
to senior high schools that implement curricula focused on the sciences and mathematics that goes beyond the Ministry’s official guidelines
with the aim of fostering the next generation of talented engineers and scientists.
Lab lesson for Chiba Prefectural Sakura High School
students at the Central Research Laboratories

DIC Report 201587

Harmony with the Community and Social Contributions

Kawamura Memorial DIC Museum of Art
The Kawamura Memorial DIC Museum of Art, located adjacent to the Central
Research Laboratories in Sakura, Chiba Prefecture, was established in 1990
to publicly exhibit works of art collected by DIC Corporation and its affiliates. In
May 2015, the museum celebrated its 26th anniversary. The museum exhibits
works from a collection that spans numerous genres, with a focus on 20th century
American art, and encompasses works by Rembrandt; Impressionists such as
Monet and Renoir; modern European artists such as Picasso and Chagall; andearly modern, modern and postwar Japanese artists.
In addition to its standing exhibit from its permanent collection of more than 1,000
major works, the museum stages special exhibitions several times a year that focus
on pertinent literature and other artifacts that evoke the cultural atmosphere at thetime the works were created to help visitors better understand the collection.
Another appealing aspect of the Kawamura Memorial DIC Museum of Art is its
location on a lushly forested 10-hectare site alive with seasonal flowers and foliagethat has been open to the public since the museum’s establishment. In cooperation
with the Chiba Biodiversity Center, the museum has also established a biodiversity
satellite, a special display area featuring display panels explaining the importanceof biodiversity, in one of the site’s rest cabins.
In a move aimed at promoting relations with the local community and fostering
local cultural activities, the museum has established an annex gallery on themuseum site. This facility, which serves as an exhibition space for local amateur
artists, is also made available once a year to elementary and junior and senior highschools in the Sakura area for an exhibition of local students’ works. The Kawamura
Memorial DIC Museum of Art also welcomes art classes, led by teachers, formuseum tours, with the goal of further supporting art education.

Kawamura Memorial DIC Museum of Art

Biodiversity satellite

Capitalizing on Business Opportunities Yielded by
Recycling Initiatives
In addition to manufacturing and selling a broad range of molded plastic products
in line with its ultimate objective, which is to protect lives, Group company DIC
Plastics, Inc., in Japan, is an active proponent of environment-friendly businesspractices, particularly material recycling* 1. Among the company’s noteworthy
achievements is its development of a system for sorting waste plastic generated
during the manufacture of original products by type and color, which greatly
assists with recovery. This has enabled the company to diversify its lineup of
products made with recycled plastics, increasing the volume of such materials it
uses and adding value to the products in which they are used.
DIC Plastics also promotes recycling by purchasing recycled plastics fromreclaimers, which it uses in the manufacture of its mainstay plastic helmets andother products.
One of the most recent additions to DIC Plastics’ product portfolio is the IZANO
professional helmet for disaster situations. In addition to offering superb safety, theIZANO helmet can be folded to approximately 60% of its full size. These features,plus the extensive range of colors available, earned IZANO an award in the 2014
Good Design Awards*2, sponsored by the Japan Institute of Design Promotion.
*1 Material recycling involves the recycling of material from an original application but in a different form.
*2 Operated by the Japan Institute of Design Promotion, the Good Design Awards is a commendation program thatannually recognizes products that represent superb achievements in design.

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88

Products made from recycledplastic bottle caps

Nature trail traversing the museum siteHarmony with the Community and Social Contributions

Siam Chemical Industry Receives CSR-DIW Award
On October 21, 2014, DIC Group company Siam Chemical Industry Co., Ltd., waspresented with a CSR-DIW Award for 2014 by the Thai Ministry of Industry at aceremony held at the Bangkok International Trade & Exhibition Centre. The CSRDIW Award program was established in 2008 with the goal of raising the global
competitiveness of Thai companies. Awards are given to companies in recognitionof corporate social responsibility (CSR) initiatives judged as exceptional from theperspective of the seven core subjects defined in ISO 26000, the International
Organization for Standardization's standard for social responsibility. (The DIC Group
uses the designation “sustainability,” rather than “CSR.”)
Since 2012, Siam Chemical has promoted a variety of undertakings, including
mangrove planting, community support and volunteer activities, and sponsorshipfor blood drives, with the active participation of both local and Japanese staff. The
company’s efforts continue to earn high marks, evidenced by the fact that it hasreceived CSR-DIW awards for three consecutive years. Siam Chemical pledges tocontinue contributing to Thai society through effective sustainability initiatives designed
to benefit residents of local communities as well as protect the environment.

V O I CEAwards presentation

President, Siam Chemical Industry Co., Ltd.

from the DIC GroupWe will redouble our efforts to promote sustainability.
We are very proud to have earned our third consecutive CSR-DIW Award in 2014. We
see this award as recognition of ongoing commitment to ensuring that our operations are
in harmony with the local community. This is an honor that I share with the employeesof Siam Chemical. I look forward to continuing to work with everyone on staff to promotemeaningful initiatives and redoubling our efforts to contribute to the sustainability of ourcommunity.

Spirulina: Promoting Harmony With Society
The DIC Group is the world’s largest supplier of Spirulina, a cyanobacteria rich in more than
50 nutrients, including vitamins, minerals and essential amino acids. In line with a support
agreement concluded in 2009 with the Alliance Forum Foundation (AFF), a Japan-based NPO,the Group provides assistance to the Spirulina Project, an AFF initiative that seeks to alleviate
hunger and improve nutrition in the Republic of Zambia.
In June 2012, with the purpose of contributing to the well-being of the people of Zambia,
we implemented a project to assess the impact of Spirulina on human health. This project
verified a reduced incidence of malnutrition among children who regularly consumed Spirulina.
Encouraged by these findings, the DIC Group and the AFF conducted production andtechnological feasibility studies in Zambia with the aim of facilitating local cultivation of Spirulina
for local consumption, and in 2014 commenced pilot production. In fiscal year 2015, the DIC
Group and the AFF will again conduct tests to measure the effectiveness of Spirulina, expanding
the scope of testing to several hundred individuals. DIC support it by the donation of bulk
powdered Spirulina. Currently, the Group also provides production and technological support
through assistance with selecting locations for cultivation and providing information on raw
materials.
The DIC Group is also engaged in a variety of other initiatives designed to promote thenutritional value of Spirulina. In fiscal year 2014, these included a nutritional education programfor private elementary schools in Tokyo’s Itabashi Ward.

DIC Report 201589

Children in Zambia

Takahisa Yamatoya (center)

Harmony with the Community and Social Contributions

Matching Gift Program
DIC has a matching gift program whereby it matches the total amountcollected through an annual year-end fundraising drive spearheaded by
its employees’ union. Funds raised through the 2014 drive and matchinggift program were donated to 19 children’s homes and facilities providing
support for disabled individuals.

DIC employees visit Toko Niji-no-ie in Ota,
Gunma Prefecture, to present a donation

Support for Reconstruction Following the Great East Japan Earthquake
Since 2011, DIC has provided support for reconstruction in areas devastated by the Great East
Japan Earthquake as a participant in the IPPO IPPO NIPPON project, an initiative organized by
the Keizai Doyukai (Japan Association of Corporate Executives) with the aim of assisting local
residents in rebuilding their lives. This initiative, which is scheduled to continue for five years,
seeks to support efforts to rebuild communities and stimulate local economies by delivering
funds collected from corporate and individual donors directly to schools and other facilities inneed of support.

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90

IPPO IPPO NIPPON project logo

Communication with Stakeholders

Themes that Demonstrate Unique Capabilities

Promoting Disclosure and Communication

Basic Approach to Promoting Communication
The DIC Group places a priority on communication with its stakeholders worldwide, which it promotes actively through direct dialogue in the formof, among others, participation in exhibitions, websites and events. By communicating effectively with stakeholders, the Group strives to ensure anadequate understanding of stakeholder expectations and to reflect such expectations in its business activities. The DIC Group is also expanding its
awareness of the concept of stakeholder engagement, a key requirement under ISO 26000.
Ties withshareholders andinvestors

Ties with society

Ties with employees

Ties with the media

Build trusting relationships.
By incorporating thedemands of customers,
seek to develop productsthat enhance customer
satisfaction.

Ensure appropriate
disclosure and build
trusting relationships
with shareholders andinvestors, encouraging
both to evaluate DIC as
an attractive investment.

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

Provide workplaces thatare conducive to job
satisfaction and enable
all employees to fulfill
their potential. Over thelong term, achieve true
diversity.

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

● DIC Report● DIC Report● DIC Report● DIC Report● Press conferences

Ties with customers

Basic approach● Websites● Product pamphlets● Corporate profile

Communications
tools

Opportunities forcommunicationDVD● Websites● Press conferences● Annual report● Websites● Site reports● Corporate profile DVD● Quarterly results

announcements●Yuka Shoken Hokokusho● DIC Plaza(in-house newsletter)● Intranet● DIC Pocket Book
(in-house Group data file)● Interviews with journalists(financial disclosure
document required oflisted companies in Japan)● Shareholder newsletters● Corporate profile DVDs
● Sales activities● Participation in

exhibitions●General shareholders’meetings● Results presentations● IR conferences● IR meetings● Production facility tours● Participation in projects involving

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

for employees● Presentations on the DIC● Newspapers● Economic publications● Industry publications

Group Code of BusinessConduct● Sustainability presentations

Ties with Customers
In fiscal year 2014, the DIC Group took part in numerous exhibitions in Japan and overseas. Such efforts createdvaluable opportunities for the Group to communicate with its customers.
In Japan, the DIC Group participated in Tokyo Pack 2014, held in Tokyo in October 2014, where it introduced
a number of the Group’s innovative and highly competitive products in the packaging field, including printing inks
and films. The same month, DIC highlighted comprehensive Group strengths with an exhibit introducing organic
pigments manufactured by global industry leader the Sun Chemical Group to domestic cosmetics manufacturers
at Cosme Tech 2014, which was also held in Tokyo.
Overseas, the DIC Group took part in display, packaging and coating resins industry trade shows in multiple
locations, including the United States, Germany, the PRC, Taiwan, India and Indonesia, all of which involved close
cooperation between pertinent sales administrative divisions in Japan and overseas Group companies.
On another front, the Central Research Laboratories, a DIC Group R&D base located in Sakura, Chiba Prefecture,continued to welcome visitors to its showroom, which features displays illustrating the key role Group products playin everyday life, an approach designed to deepen public understanding of the DIC Group and its operations.

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91

2014 American Coatings Show, held in Atlanta, in the U.S.
state of Georgia

Communication with Stakeholders

Ties with Shareholders and Investors
The DIC Group strives to ensure fair, appropriate and timely
disclosure and to communicate closely with investors andincorporate their opinions and requests into its management
and operating activities. In fiscal year 2014, the Group sought
to enhance communication with domestic investors by holding
two results presentations for institutional investors and securities
analysts, as well as by participating in investor relations (IR)conferences and IR meetings of various types. Overseas, theGroup held IR meetings in North America, Europe and Asia,
encouraging greater understanding of the Group’s strategies
through presentations by senior executives.
Results presentation (February 2014)

Ties with Society
In addition to the business community, the DIC Group takes steps
to enhance communication with ordinary consumers, including
students. In fiscal year 2014, Group company DIC Graphics
Corporation took part in the Corporate Project, an undertaking
involving collaboration between industrial concerns and projectsponsor Tokyo Communication Arts College. The project involves
tasking students at the college with assisting in the resolutionof issues related to, among others, the development of a new
product and the creation of related advertising and package
designs, by proposing responses that capitalize on their fresh,young sensibilities.
In May 2014, the Kawamura Memorial DIC Museum of Art
held a two-day event on the museum site. The fair, titled “Artsand Crafts Fair in the Park,” featured works by individuals withconnections to Chiba Prefecture, food and drink stalls and an
outdoor market, and attracted an estimated 15,000 guests.
In December 2014, DIC participated in Eco-Products 2014,
marking its second consecutive appearance in this annual event,which is noted for attracting students as well as a wide range ofother ordinary consumers. DIC’s Eco-Products 2014 booth, whichfeatured energy-saving UV-curable inks, green pigments forcolor filters and industrial adhesive tapes, attracted considerable
attention from visitors as eco-friendly products.

DIC Report 201592

Arts and Crafts Fair in the Park (Kawamura Memorial DIC Museum of Art)

Communication with Stakeholders

Communications in the Field of Education
To further enhance public understanding of its operations, DIC invited three students from Sawakami Junior High School in Nagoya to visit its
headquarters in Tokyo. While there, the students were given an introduction to the DIC Group using the Group’s corporate profile DVD, as well
as a presentation on DIC’s safety and disaster-mitigation efforts, including hands-on safety training, environmental protection initiatives andefforts to combat environmental issues in consumer-relevant areas such as food packaging.
Overseas, DIC Group company DIC Compounds (Malaysia) Sdn. Bhd. welcomed a group of students from Miyanojo College, in Miyazaki
Prefecture, Japan—a senior high school that is part of Japan’s National Institute of Technology—for a visit to their facilities. The visit included
a general introduction to the DIC Group and a tour encompassing, among others, the company’s PPS compounds production line, technicalcenter and safety laboratory, which manufactures equipment used by the DIC Group in its hands-on safety training. Following the tour, thevisitors participated in a follow-up session that included a lively question-and-answer session with the company’s R&D staff.

Junior high school students visit DIC’s headquarters in Tokyo

High school students visit DIC Compounds (Malaysia)

Ties with Employees
The DIC Group promotes a variety of initiatives to encourage active communication with its
employees. DIC Plaza, the Group’s in-house newsletter, which is published in Japanese andEnglish, highlights the Group’s global operations and introduces colleagues from aroundthe world. A Group intranet and various portal sites enable DIC to share information with
employees worldwide and enhance understanding of its activities.
Senior management also promotes opportunities for direct communication with employees.
These include quarterly operating results presentations for employees given by the president
and CEO, the goal of which is to enhance understanding of the Group’s management
strategies and the Group’s current operating and financial status.
In fiscal year 2014, the DIC Group gave 114 presentations at Group companies, principallyin Japan, on sustainability initiatives. This was timed to coincide with DIC’s decision tochange the designation used across its program from “CSR” to “sustainability.”

Results presentation for employees ( February 2014)

Ties with the MediaDIC Plaza

DIC is reinforcing efforts to provide information with newspapers, magazines and other media as ameans of enhancing its ability to communicate with its many stakeholders, who include its customers andshareholders, investors and local communities. This reflects a conviction that effective, independent publicity
and advertising that facilitates objective media coverage is vital to securing stakeholders’ understanding of
the DIC Group and its operations. In fiscal year 2014, DIC provided the media with information on a variety
of key subjects, including new products, operating results, sustainability initiatives and personnel systems.
Increased media coverage brought positive responses from stakeholders across the board.

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93

Press conferencesin fiscal year 2014

Interviews withjournalists in fiscal
year 2014

53

104

DIC Report 2015 and ISO 26000: A Comparison
Core subjects

Organizational
Governance

Human Rights

LabourPractices

No.

ThemesRelevant page

Relevant sections/initiatives

P3–4
P8–9
P26–27P28
P29–30
P31–32
P80–82
P91–93
P26–27
P69
P77–79P69
P77–79P27
P27
P77–79

P46–55
P56–57
P58–59
P60–61
P62
P63–65
P68
P16–18P25
P83–84P88
P46–55P88
P29–30―
P29–30
P77–79P29

A Message from the President
Messages from Top Executives at Regional Headquarters
The DIC Group’s Sustainability Program
Corporate Governance
Toward Fair and Transparent Corporate Activities
Reducing Business Risks and Preventing the Recurrence of Incidents
Establishing Solutions-Oriented Businesses
Promoting Disclosure and Communication
The DIC Group’s Sustainability Program
Working to Enhance Job Satisfaction
Global Supply Chain Management
Working to Enhance Job Satisfaction
Global Supply Chain Management
Ensuring DIC Remains a Globally Trusted Corporate Citizen with a Proud Reputation
Leveraging its Position as a Global Manufacturer of Fine Chemicals to Support the UNGC
Global Supply Chain Management
Initiatives to Promote Compliance
Establishing and Operating a Whistle-Blowing System
Promoting Diversity
The DIC Group Code of Business Conduct
Respect for Human Rights
Spirulina: Promoting Harmony with Society
Ensuring DIC Remains a Globally Trusted Corporate Citizen with a Proud Reputation
Leveraging its Position as a Global Manufacturer of Fine Chemicals to Support the UNGC
Working to Enhance Job Satisfaction
Initiatives that Support a Healthy Work–Life Balance
Building Trust with the DIC Employees’ Union
Occupational Safety and Health, Security and Disaster Prevention
Caring for Mental Health
Global Human Resources Management
Securing and Fostering Human Resources
Promoting Responsible Care
Initiatives to Date
Responsible Care Auditing
Preventing Global Warming
Reducing Emissions of Chemicals into the Environment
Reducing Environmental Impact on Air, Water and Soil
Reducing Industrial Waste
Overview of Environmental Impact of the DIC Group’s Operating Activities
Managing Chemical Substances in Products
Report on Other Initiatives
Special Feature Adhesive with Oxygen Barrier Properties (PASLIM)
Topic Groundbreaking Sun Chemical Solution Enhances the Recyclability of Shrink Sleeve-Labeled PET Bottles
Proposing Solutions that Leverage Elemental Technologies
Capitalizing on Business Opportunities Yielded by Recycling Initiatives
Preventing Global Warming
The Kawamura Memorial DIC Museum of Art
Toward Fair and Transparent Corporate Activities—
Toward Fair and Transparent Corporate Activities
Global Supply Chain Management
The DIC Group Code of Business Conduct

P63–65

Managing Chemical Substances in Products

6.2

Organizational governance

6.3.3

1： Due diligence

6.3.4

2： Human rights risk situations

6.3.5

3： Avoidance of complicity

6.3.6

4： Resolving grievances

P29–30

6.3.7

5： Discrimination and vulnerable groups

6.3.8

6： Civil and political rights

6.3.9

7： Economic, social and cultural rights

6.3.108： Fundamental principles and rights at work

6.4.3
6.4.4
6.4.5

1： Employment and employment relationship
2： Conditions of work and social protection
3： Social dialogue

6.4.6

4： Health and safety at work

6.4.7

5： Human development and training in the workplace

P70
P29
P69
P89
P27
P27
P69–76
P72–74P69
P38–45
P74
P69
P75–76
P35–376.5.3

1： Prevention of pollution

6.5.4

2： Sustainable resource use

6.5.5
6.5.6
6.6.3
6.6.4
6.6.5
6.6.6
6.6.7
6.7.3

3： Climate change mitigation and adaptation
4： Protection of the environment, biodiversity and restoration of natural habitats
1： Anti-corruption
2： Responsible political involvement
3： Fair competition
4： Promoting social responsibility in the value chain
5： Respect for property rights
1： Fair marketing, factual and unbiased
information and fair contractual practices

6.7.4

2： Protecting consumers' health and safety

P35–37

6.7.5

6.7.7
6.7.8
6.7.9

3： Sustainable consumption
4： Consumer service, support, andcomplaint and dispute resolution
5： Consumer data protection and privacy
6： Access to essential services
7： Education and awareness

6.8.3

1： Community involvement

P83–85
P63
P66–67
P33–34
―
P92
P86
P89

6.8.4

2： Education and culture

P87–886.8.5

3： Employment creation and skills

6.8.6

4： Technology development and access

6.8.7
6.8.8
6.8.9

5： Wealth and income creation
6： Health
7： Social investment―
P16–18
P19–21
P22–24
P86
―
P89
P90

The
Environment

Fair Operating
Practices

ConsumerIssuesCommunity
Involvement
andDevelopment

6.7.6

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94

Promoting Responsible Care
Initiatives to Date
Responsible Care Auditing
Proposing Solutions that Leverage Elemental Technologies
Managing Chemical Substances in Products
Enhancing Product Quality and Customer Satisfaction
Initiatives to Ensure Information Security—
Ties with Society
Basic Approach to Social Contribution
Spirulina: Promoting Harmony with Society
Visiting Science Lab Program
Initiatives Led by the Central Research Laboratories
The Kawamura Memorial DIC Museum of Art—
Special Feature Adhesive with Oxygen Barrier Properties (PASLIM)
Special Feature Epoxy Resin and Curing Agent for Infrastructure Renovation (EPICLON with LUCKAMIDE)
Special Feature Firefighting Foam (MEGAFOAM)
Publication of the Guidebook for the Color Universal Design–Recommended Color Set—
Spirulina: Promoting Harmony with Society
Support for Reconstruction Following the Great East Japan Earthquake

Third-Party Verification

The DIC Group commissioned SGS Japan Inc. to conduct third-party verification of its data forgreenhouse gas emissions and discharge of industrial waste.

DIC Report 201595

Third-Party
Opinion Regarding the2015 DIC ReportCounselor,
The Japan Research Institute, Limited

Eiichiro Adachi

In his current capacity, Eiichiro Adachi conducts
indust r y re s earc h and as s e s s e s c o r p o r ate
per formance from the perspective of social
responsibility. He also provides financial institutions
with corporate information for socially responsible
investing (SRI). A member of the Market Evolution
and Corporations in the 21st Century working grouporganized by the Keizai Doyukai (Japan Associationof Corporate Executives), Adachi was involved in the
preparation of The 15th Corporate White Paper on“Market Evolution” and CSR Management: Toward
Building Integrity and Creating Shareholder Value. He
also served as a national expert for Japan to the ISO
26000 working group.

This year, I again had the honor of reviewing the DIC Report. The special feature section of
the report, “Developing Innovative Products that Address Key Social Imperatives,” made aparticularly strong impression on me. One is inclined to think that the fine chemicals suppliedby the DIC Group are products with which the average consumer has very little direct contact,
but this feature illustrates that they in fact play an essential role in myriad industrial activities
and administrative services and as such contribute to the creation of social value.
Having indicated in my review of the 2014 DIC Report that I would like to see DIC significantly
expand the inclusion of information based on overseas examples, I would like to commend
the inclusion this year of messages from top regional executives and information on, among
others, the introduction of global safety data sheets and overseas energy-saving initiatives.
Insofar as 59.7% of DIC’s consolidated net sales and 54% of its consolidated operating income
are generated outside Japan, I think it is important that the Company continues working to
expand and enhance its presentation of information that enables readers to effectively grasp
the performance of the DIC Group as a whole.
In my view, sustainability reporting by any company in the chemicals sector has eight crucialcomponents: greenhouse gas emissions, release of pollutants into the air, energy consumption,water use, management of hazardous substances, product stewardship from the perspectivesof risks to human health and the environment, contribution to the improved environmental
efficiency of the company’s customers, and industrial accidents/occupational health and safety.
On the whole, I think that the 2015 DIC Report provides solid data in all eight areas. However,information on emissions of chemical substances into the environment and efforts to reducethese emissions generally focuses on the parent company and domestic Group companies.
The fact that legal and regulatory inconsistencies from one country and one region to the next
make this difficult is certainly understandable. However, this information is crucial. The report
itself says: “As chemicals companies handle a considerably greater volume and more diverse
range of chemical substances than companies in other industries, they must be extremely
vigilant to prevent discharges of such substances into the environment.” I would like to see DIC
disclose information on efforts to reinforce related initiatives across the four regional groupings
DIC uses for its sustainability reporting, that is, Japan, Greater China, the Asia–Pacific region,and the Americas and Europe.
In terms of organization, the presentation of information in line with 10 Group sustainability
themes appears to have become standard. I do think that reader comprehension could
be further aided by clarifying the differences between “business models that respond tosocial imperatives” and “new technology development and value creation.” I would also liketo see more information on intellectual property protection, which is certainly key to thecompetitiveness of printing inks and other fine chemicals products.
In closing, I would also like to see a less ambiguous explanation of what social imperatives
the DIC Group recognizes. This year’s report states that the Group also takes a “market-in”
approach, paying heed to issues of global significance, such as global warming, with the aimof predicting trends and anticipating the future needs of society. I would like concrete examplesof what social concerns and issues of global significance the Group views as particularly
important. The United Nations expected to launch its post-2015 development agenda andadopt new Sustainable Development Goals (SDGs) this year, so next year I also hope to see a
conceptual presentation of how the Group sees the role of its business activities in supporting
the agenda and the SDGs.

This third-party opinion reflects my view of the sustainability initiatives and information disclosure of the DIC Group, as understood from reading this report,
from my perspective as an individual who provides corporate information to financial institutions to assist socially responsible investing (SRI). It is notintended as a comment on whether or not the information herein has been measured and calculated accurately to conform to commonly accepted standards
for the preparation of environmental or other reports or a judgment on whether the report covers relevant important matters in full.

DIC Report 201596

107 Years of Achievement

DIC Group Milestones

1908

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

1925

1957

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

Enters the plastic products business with the aim of
becoming an integrated manufacturer with operations
encompassing production of everything from plastic raw
materials to finished products.

1940

1962

Begins production of organic
pigments

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

Enters the market for helmets andother molded plastic products

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

1952

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

DIC’s founder, Kijuro Kawamura

1968

Dragon product trademark

1915

Commences sales of the
DIC Color Guide ®

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

DIC’s previous
corporate symbol

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

DIC Color Guide ®

Sustainability Initiatives

Promotes
expansion of
printing inks
business

1973

Establishes theEnvironment and Safety
Response Department
Creates department under the directsupervision of DIC’s president tooversee safety and environmental
initiatives (today’s Responsible Care
Department); creates Environment and
Safety Management Regulations andInterim Emergency Countermeasures
Department and begins promotingd e c i s i v e e f f o r t s, i n c l u d i n g t h eimplementation of plant safety
inspections.

Actively
introduces
technologies
from overseas
and promotes
furtherdiversiﬁcation

Diversiﬁes
operations bybuilding on base inprinting inks,
organic pigments
and synthetic
resins

1990

1995

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

Takes an active role in the Responsible Caremovement 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 of operations and reduce energy
consumption.

Opens Kawamura
Memorial Museum of Art

Kawamura Memorial DIC Museum of Art

DIC Report 2015

97

Declares intention to uphold theprinciples of Responsible Care

DIC Group Milestones

1970

1999

2009

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

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

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.

Succeeds in developing 100% soybean
oil-based printing ink

Enters the multilayeredfilms business

Establishes DIC Graphics Corporation

2013

1973

Launches DIC105 medium-term
management planEnters the market for LCs
Develops revolutionary high-performance, long-lastingnematic LCs, commencing its evolution into one of theworld’s foremost manufacturers of LCs.

New Champion Naturalith 100
organic solvent-free sheetfed offset ink

2015

1999

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

Nematic LCs

1986

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

Embarks on a new plan—the slogan of which is “StepBeyond”—that is positioned as the first three-year phase ofa longer-term initiative that sets clear, concrete objectives forfiscal year 2018.

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

2008

Changes Company nameto DIC Corporation

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

DIC Building

DIC’s new corporate symbol
Sun Chemical’s headquarters

Takes steps
to advanceenvironmental
protection andexpands
global presence

Seeks
to advanceglobalization ofcore businesses anddiversify into
new areas

Prepares for a
new phaseof growth

2006

2007

2010

2014

Signs Declaration of Support for the Responsible
Care Global Charter, established by theInternational Council of Chemical Associations, as
befits its status as a member of the global
community of fine chemicals manufacturers.

Begins promoting CSR
initiatives; identifies fulfilling
its responsibilities as a memberof society through its businessactivities and contributing to
the evolution of society as thecornerstones of CSR.

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

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

Joins United Nations
Global Compact

Changes designation to “sustainability”

In-house poster promoting sustainability initiatives

Launches CSR
programCertification of DIC as Signatory to
the Responsible Care Global Charter

Becomes signatory to the
Responsible Care Global Charter

DIC Report 201598

Corporate Data
Corporate Data

Consolidated Financial Highlights
Fiscal year 2013

Registered name:

DIC Corporation

Registered address:

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

Corporate
headquarters：

DIC Building, 7-20, Nihonbashi 3-chome,
Chuo-ku, Tokyo 103-8233, Japan
Tel: +81-3-6733-3000¥830,078
41,07639,92525,19426.78
803,703

200
0

41.1

20

40.2

Domestic facilities： Two branch ofﬁces and nine plants

38.5

30

400

35.0

40

600

37.2

50

800

830.1

1,000

705.6

20,411 (Nonconsolidated: 3,542)

Operating Income (Billions of yen)(Billions of yen)

703.8

¥96.6 billion

734.3

Paid-in capital：

Net Sales

779.0

March 15, 1937

Number ofsubsidiaries
and afﬁliates：¥705,647
40,181
37,123
26,771
29.23
761,690

Millions of yen, except for per share information

Date ofincorporation：

Number of
employees：(Year ended
December 31, 2014)

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

Date of foundation： February 15, 1908

Fiscal year 2014

(Year ended
December 31, 2013)10’10 ’11 ’12 ’13 ’14（Fiscal year）

0’10 ’11 ’12 ’13 ’14（Fiscal year）

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

176 (Domestic: 32, Overseas: 144)

(Information is as of December 31, 2014.)(Information is as of May 31, 2015.)

Executive Ofﬁcers

Board of Directors
Representative Director

Yoshiyuki Nakanishi

Representative Director

Masayuki Saito

Director

President and CEO

Yoshiyuki Nakanishi

Executive Ofﬁcer

Hiroshi Fujita

Yoshihisa Kawamura

Senior Managing Executive Ofﬁcer

Masayuki Saito

Executive Ofﬁcer

Rudi Lenz

Director

Hitoshi Wakabayashi

Director

Tetsuro Agawa

Managing Executive Ofﬁcer

Yoshiyuki Masuda

Executive Ofﬁcer

Toshio Kanbe

Director

Takao Suzuki*

Managing Executive Ofﬁcer

Kazuo Kudo

Executive Ofﬁcer

Hideki Inouchi

Managing Executive Ofﬁcer

Toshio Hasumi

Executive Ofﬁcer

Kaoru Ino

Managing Executive Ofﬁcer

Tetsuo Agawa

Executive Ofﬁcer

Toshifumi Tamaki

Managing Executive Ofﬁcer

Hitoshi Wakabayashi

Executive Ofﬁcer

Masaya Nakafuji

Managing Executive Ofﬁcer

Kazunari Sakai

Executive Ofﬁcer

Koji Tanigami

Executive Ofﬁcer

Hideo Ishii

Executive Ofﬁcer

Shinsuke Toshima

Executive Ofﬁcer

Naoyoshi Furuta

Executive Ofﬁcer

Sakae Yoshida

Executive Ofﬁcer

Masao Hotozuka

Executive Ofﬁcer

Masami Hatao

Director

Yukako Uchinaga**

OutsideCorporate Auditors
Corporate Auditor

Jiro Mizutani

Corporate Auditor

Yoshiyuki Mase

Corporate Auditor

Katsunori Takechi*

Corporate Auditor

Cindy Yoshiko Shirata**

Outside(Information is as of March 26, 2015.)

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

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

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

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

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

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

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

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

Art Museum
Kawamura Memorial DIC Museum of Art
631, Sakado, Sakura, Chiba 285-8505, Japan
Tel: +81-43-498-2672 Fax: +81-43-498-2139(Information is as of May 31, 2015.)

DIC Report 201599

Principal Domestic Subsidiaries and Affiliates
Cast Film Japan Co., Ltd.

DIC Kako, Inc.

Mizushima Kasozai Co., Ltd.

DC Katsuya Co., Ltd.

DIC Kitanihon Polymer Co., Ltd.

Nippon Epoxy Resin Manufacturing

DIC Bayer Polymer Ltd.

DIC Kyushu Polymer Co., Ltd.

Co., Ltd.

DIC Color Coatings, Inc.

DIC Lifetec Co, Ltd.

Oxirane Chemical Corp.

DIC Color Design, Inc.

DIC Machinery & Printer s Supplies, Inc.

Renaissance, Inc.

DIC Decor, Inc.

DIC Material Inc.

Seiko PMC Corporation

DIC EP Corp.

DIC Molding, Inc.

SUNDIC Inc.

DIC Estate Co., Ltd.

DIC Plastics, Inc.

Techno Science, Inc.

DIC Graphics Corporation

Hamamatsu DIC Co., Ltd.

Topic Co., Ltd.

DIC Interior Co., Ltd.

Japan Formalin Company, Inc.

YD Plastics Co., Ltd.

DIC Investments Japan, LLC.

KJ Chemicals Corporation(Information is as of May 31, 2015.)

Principal Overseas Subsidiaries and Affiliates
Aekyung Chemical Co., Ltd.

P.T. Pardic Jaya Chemicals

Changzhou Huari New Material Co., Ltd.

Qingdao DIC Finechemicals Co., Ltd.

S.A. de C.V.

DIC Alkylphenol Singapore Pte., Ltd.

Qingdao DIC Liquid Crystal Co., Ltd.

Sun Chemical Delta B.V.

DIC Asia Paciﬁc Pte Ltd

Samling Housing Products Sdn. Bhd.

Sun Chemical de Panama, S.A.

DIC Australia Pty Ltd.

Shanghai DIC Ink Co., Ltd.

Sun Chemical do Brasil Ltda.

DIC (China) Co., Ltd.

Shanghai DIC Pressure-Sensitive Adhesive

Sun Chemical Group Coöperatief U.A.

DIC Colorants Taiwan Co., Ltd.

Materials Co., Ltd.

Sun Chemical de Centro America,

Sun Chemical Group S.p.A.

DIC Compounds (Malaysia) Sdn. Bhd.

Shanghai Showa Highpolymer Co., Ltd.

Sun Chemical (Hai an) Limited

DIC Epoxy (Malaysia) Sdn. Bhd.

Shenzhen-DIC Co., Ltd.

Sun Chemical Holding (Hong Kong) Ltd.

DIC Europe GmbHSiam Chemical Industry Co., Ltd.

Sun Chemical Inks A/S

DIC Fine Chemicals Private Limited

Suzhou Lintong Chemical Science Corp.

Sun Chemical Inks Ltd.

DIC Graphics Chia Lung Corp.

TOA-DIC Zhangjiagang Chemical Co., Ltd.

Sun Chemical Inks S.A.

DIC Graphics (Guangzhou) Ltd.

Zhongshan DIC Colour Co., Ltd.

Sun Chemical Lasfelde GmbHDIC Graphics (Hong Kong) Ltd.

Sun Chemical Ltd. (Canada)

DIC Graphics (Thailand) Co., Ltd.

● Sun Chemical GroupSun Chemical Ltd. (U.K.)

DIC (Guangzhou) Co., Ltd.

Sun Chemical Corporation

Sun Chemical Matbaa Mürekkepleri

DIC Imaging Products USA, LLC.

Benda-Lutz Corporationve Gereçleri Sanayii ve Ticaret A.Ş.

DIC India Ltd.

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

Sun Chemical N.V./S.A.

DIC International (USA), LLC.

Benda-Lutz Volzhsky ooo

Sun Chemical Nyomdafestek

DIC Korea Corp.

Benda-Lutz Werke GmbH

Kereskedelmi es Gyarto KFT

DIC Korea Liquid Crystal Co., Ltd.

Coates Brothers (Caribbean) Ltd.

Sun Chemical Osterode Druckfarben

DIC Lanka (Private) Ltd.

Coates Brothers (East Africa) Ltd.

GmbHDIC (Malaysia) Sdn. Bhd.

Coates Brothers (West Africa) Ltd.

Sun Chemical Oy

DIC New Zealand Ltd.

Coates Screen Inks GmbHSun Chemical Peru S.A.

DIC Pakistan Ltd.

Hartmann D.O.O.

Sun Chemical Pigments S.L.

DIC Performance Resins GmbH

Hartmann Druckfarben GmbHSun Chemical Portugal-Tintas Graﬁcas

DIC Philippines, Inc.

Hartmann-Sun Chemical EOOD

Unipessoal Ltda.

DIC (Shanghai) Co., Ltd.

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

Sun Chemical Printing Ink d.o.o.

DIC Synthetic Resins (Zhongshan)

Lorilleux Maroc S.A.

Sun Chemical S.A.

Co., Ltd.

Parker Williams Design Ltd.

Sun Chemical S.A. de C.V.

DIC (Taiwan) Ltd.

Sinclair International Inc.

Sun Chemical S.A.S.

DIC Trading (HK) Ltd.

Sinclair S.A.S.

Sun Chemical (South Africa) (Pty) Ltd.

DIC (Vietnam) Co., Ltd.

Sinclair Sun Chemical Ecuador S.A.

Sun Chemical Sp. z.o.o.

DIC Zhangjiagang Chemicals Co., Ltd.

Sun Branding Solutions Ltd.

Sun Chemical s.r.l.

Earthrise Nutritionals, LLC.

Sun Chemical AB

Sun Chemical, s.r.o. (Czech Republic)

Hainan DIC Microalgae Co., Ltd.

Sun Chemical AG (Austria)

Sun Chemical, s.r.o. (Slovakia)

Kangnam Chemical Co., Ltd.

Sun Chemical AG (Switzerland)

Sun Chemical Trading (Shanghai) Co., Ltd.

Lianyungang DIC Color Co., Ltd.

Sun Chemical Albania SHPKSun Chemical Ukraine Ltd.

Lidye Chemical Co., Ltd.

Sun Chemical A/S (Denmark)

Sun Chemical Venezuela C.A.

Nantong DIC Color Co., Ltd.

Sun Chemical A/S (Norway)

Sun Chemical ZAOPT DIC ASTRA Chemicals

Sun Chemical B.V.

Tintas S.A.S.

PT. DIC Graphics

Sun Chemical (Chile) S.A.

(Information is as of May 31, 2015.)

DIC Report 2015100

（Contact）

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

FAX : +81-3 - 6733 - 3038

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