With Customers 
Goals and Achievements of Major Initiatives
Create businesses with the potential to become new pillars.
| Goals for fiscal year 2022 | Designate business areas where ESG-related issues and social changes intersect with DIC’s core competencies as priorities and establish next-generation businesses that contribute to the resolution of social imperatives. |
|---|---|
| Achievements in fiscal year 2022 | Efforts centered on priority business areas. In 3D printing materials and heat-dissipating fillers, the emphasis was on establishing mass production and launching new products. In healthcare, the focus was on establishing a mass production technology for SACRAN™ and launching a new cosmetics business. |
| Evaluation | ★★★ |
| Goals for fiscal year 2023 | Designate business areas where ESH-related issues and social changes intersect with DIC’s core competencies as priorities and establish next-generation businesses that both maximize corporate profits and amplify social value. |
| Goals for fiscal year 2022 | Promote open innovation (through CVC, collaboration with academic institutions and M&As) and strategic investments with the aim of enhancing the DIC Group’s technology platform and driving the creation of new businesses and products. |
|---|---|
| Achievements in fiscal year 2022 | A strategic investment in U.S. biotechnology startup BYAS and participation in a collaborative JAIST project involving collaboration among industry, government and academia strengthened capabilities insufficient in existing assets, thereby helping advance the creation of new businesses. |
| Evaluation | ★★★ |
| Goals for fiscal year 2023 | Promote open innovation and strategic investments in areas that will contribute to a society that is increasingly green, digital and QOL-oriented with the aim of driving the creation of new products and services. |
- Evaluations are based on self-evaluations of current progress.
Key: ★★★= Excellent; ★★ = Satisfactory; ★= Still needs work
Creating New Value
The DIC Group’s redefined vision statement, expresses its goals of improving the human condition to realize sustainable prosperity. Seeing its mission as being to achieve sustainable growth for itself and society, the Group is pursuing various initiatives aimed at helping realize carbon neutrality, in line with its basic policy of providing greater social benefits that enhance shareholder value and build long-term corporate value.
Seeking to fulfill its mission, the DIC Group set a target in its DIC Vision 2030 long-term management plan of increasing sustainable products to 60% of its net sales by expanding businesses in growth markets and creating new businesses to promote portfolio transformation. Through the initiatives set forth in the plan, the Group pledges to contribute to the realization of a society that is more green, digital and QOL-oriented.
Portfolio Transformation
The COVID-19 pandemic has created a new normal that is expected to significantly accelerate the transition to a digital society and fundamentally altered consumer behavior. Recent years have also heightened corporate awareness of the importance of achieving carbon neutrality by 2050. Amid these paradigm shifts, the DIC Group has identified five priority business areas at the intersection of ESH-related issues and social changes and its core competencies: Sustainable energy, healthcare, smart living, color science and sustainable packaging.
The New Business Development Headquarters is charged with commercializing products in next-generation and growth businesses, while the R&D Management Unit is in charge of establishing inorganic materials design and biomaterial design technologies as new basic technologies essential to the creation of new businesses. A seamless framework for cooperation between the two will further drive portfolio transformation by facilitating the swift establishment of new businesses.
Next-generation and growth businesses are highly competitive and evolve rapidly. In addition to strengthening internal cooperation to promote the commercialization of new products in such areas, the Group will make active use of external resources by promoting open innovation by, among others, leveraging corporate venture capital (CVC) and connections in other industries, investing in startups, and collaborating with academic institutions and other companies.
01JDA Aimed at Realizing New Method for Synthesizing Natural Red Pigments
Recent years have seen a rapid increase in demand—notably for use as food colorings and in cosmetics—for natural alternatives to conventional synthetic petroleum-derived pigments. Nonetheless, there have been significant challenges to commercialization of pigments derived from natural materials, including plants, due to unacceptably low yields (the amount that can be extracted is often small), excessive post-extraction waste generation and environmental concerns such as extensive land and water requirements.
DIC is currently collaborating with U.S. synthetic biology company Debut Biotechnology, Inc., with which it has a joint development agreement (JDA), to realize a new method for synthesizing naturally derived pigments. Debut possesses outstanding enzyme discovery and design technologies, as well as an advanced biomanufacturing platform (precision fermentation and cell-free manufacturing) using these enzymes. By working together, DIC and Debut are seeking to achieve the swift commercialization of high-purity and odorless plantderived pigments that also overcome environmental, quality and supply issues. In the first phase of the JDA, the partners achieved titers onethousand times higher than those typically achieved using traditional methods. In the second phase, which commenced in July 2022, the two companies will focus on developing and scaling up a sustainable and highly efficient pigment production process.
02The New DIC Human Sensitivity Lab: A Base for Developing Products and Services Based on Human Sensibilities
With economic progress, people are increasingly making the conscious choice to prioritize spiritual wealth over material affluence. Together with Tokyo-based Leave A Nest Co., Ltd., DIC established the DIC Human Sensitivity Lab, which will work to theoretically quantify—and to create new products, services and businesses that echo—human sensibilities. By scientifically illuminating and theoretically quantifying the five senses—the biological system used for sensation, that is, the gathering of information about the world through the detection of stimuli—as well as human sensibilities, which are emotional reactions that are informed by habits, experiences and environmental factors, the DIC Human Sensitivity Lab seeks to build the Kansei* Technology Platform, a product and service development platform. One specific development theme involves collaborating with Japanese firm Kansei AI Co., Ltd., a startup that began as part of The University of Electro-Communications, to develop a new materials development system that uses measuring technologies to quantify and objectively present the “kansei value” of the tactility and texture of materials.
In 1968, DIC launched Japan’s first color sample book for the printing industry, the DIC Color Guide®, setting standards for colors that are both subjective and closely linked to human perceptions, and, by giving numerical representation to colors, creating a common language understood by everyone involved in the printing process. Going forward, the DIC Group will continue to advance the creation of new products, services and businesses that echo human sensibilities, as well as embody its “Color & Comfort” brand slogan, contributing to the realization of a sustainable society in which people and the earth exist in harmony.
- A Japanese expression meaning “human sensibilities”
03Development of the World’s First Indoor Mass Cultivation Technology for Suizenji Nori
Blue-green algae, which absorbs CO₂ and produces multiple useful substances through photosynthesis, is attracting increasing attention not only from the perspective of sustainability but also as a material for use in various industries, including healthcare, medicine and food. Suizenji nori (scientific name: Aphanothece sacrum) is a fresh-water blue-green algae indigenous to Japan that has been highly valued as an ingredient in highend Japanese cuisine since the Edo Period (1603–1867). Macromolecular polysaccharide SACRAN™,* extracted from Suizenji nori, is used widely in cosmetics thanks to its outstanding moisture-retention capacity, skin barrier functions and anti-inflammatory properties. Owing to environmental change, Suizenji nori habitats have declined to the point where today the only place it grows naturally is in and around the Kogane River in the city of Asakura, Fukuoka Prefecture.
In March 2021, DIC entered into a capital and business alliance with Japanese biotech start-up Green Science Materials Co., Ltd. (GSM). In fiscal year 2022, this alliance, which brings together DIC’s algae culture technology, fostered over 40 years of producing edible blue-green algae Spirulina, with the results of basic research in the cultivation of Suizenji nori conducted by GSM, led to the development of the world’s first indoor mass cultivation for the rare freshwater algae. The companies are currently working toward commencing mass indoor Suizenji nori cultivation, as well as to global sales of SACRAN™, extracted from Suizenji nori as a uniquely Japanese cosmetic ingredient. DIC and GSM will also continue striving to capitalize on the functionality of Suizenji nori to expand applications in areas other than cosmetics, including medicine, nutritional supplements, personal care and apparel.
By strengthening its biobased materials business in the area of healthcare and leveraging functional materials extracted from algae, the Company will work to enhance its contributions to QOL, as set forth in its DIC Vision 2030 long-term management plan.
- SACRAN is a trademark of GSM.
TOPIC
DIC Launches Skincare Brand fillwith, Which Pleases Users’ Sensibilities and Benefits Their Skin
In fiscal year 2022, DIC launched new skincare brand fillwith. Designed to please users’ sensibilities, fillwith is the embodiment of “comfort.” In addition to moisturizing, these products resonate with the senses of sight, touch and smell, appealing to refined sensibilities and enveloping the user in luxury. They are designed to be an extension of the individual user, inspiring an emotional response and evoking the progress of life and the changing of the seasons.
Drawing on the bounty of nature, fillwith cosmetics are crafted with carefully selected natural ingredients, including fragrances, derived from plants and algae. Particularly notable is a naturally derived macromolecular polysaccharide, extracted from Suizenji nori blue-green algae, that boasts approximately 10 times the moistureretention capacity of hyaluronic acid.* Sales of fillwith cosmetics, which are available exclusively via an official online store, commenced in February 2023.
Looking ahead, DIC will continue to offer fillwith cosmetics made with macromolecular polysaccharide extracted from Suizenji nori that respond to changing skincare needs, helping to support users’ physical and spiritual well-being.
- As measured by the Japan Advanced Institute of Science and Technology using a modified tea bag method.
Official Brand Website
TOPIC
Leveraging CVC to Work to Build a Sustainable Future
In 2016, DIC established a corporate venture capital (CVC) unit that is charged with searching the globe for start-ups boasting unique technologies, compelling business models or disruptive innovations that may contribute to society and to the longevity of the DIC Group. Or particular note, the unit looks for start-ups positioned to strive in the age of sustainable business. One such example is Checkerspot, Inc., in which DIC invested in 2018, which uses microalgae as a direct replacement for petroleum-based resources to create materials that facilitate the production of more sustainable high-performance products. From its approach to product design, which incorporates considerations for end-of-life disposal, to its use of social media to gauge consumers’ affinity for ecology, the environment and sustainability, as well as to track their reactions, Checkerspot has created a business model that is revolutionary on many fronts. In line with its New Pillar Creation strategy, DIC will continue to actively leverage CVC as a route to open innovation with the aim of building partnerships with companies to create new businesses that help address key social imperatives.
Skis made from algae-derived polyol produced by Checkerspot
TOPIC
DIC Provides Hollow-Fiber Membranes for Use in ECMO
DIC provides hollow-fiber membranes to add oxygen to the blood in extracorporeal membrane oxygenation (ECMO)*, which is currently being used worldwide to treat critically ill COVID-19 patients. Oxygenators replace the function of the patient’s own lungs, temporarily drawing low-oxygen venous blood from the patient’s body to allow artificial oxygenation and then returning it to the body.
A hollow-fiber membrane is a bundle of hollow fibers that oxygenates blood by flowing it across the outer surface of the gas permeable bundle while passing oxygen through the inside. DIC’s hollow-fiber membranes for this application are made with a special polyolefin resin that effectively minimizes the risk of thromboembolic complications and have earned a solid reputation for reliability over the three decades since first being adopted for use as oxygenator gas separation membranes in 1990. Given the increasing number of patients worldwide with acute respiratory distress syndrome (ARDS) as a result of the COVID-19 pandemic, DIC will continue working to help ensure a steady supply of indispensable medical equipment.
- ECMO is an extracorporeal technique for providing respiratory and circulatory support to patients with ARDS using a pump and an oxygenator.
DIC’s Hollow fiber membrane used in Oxygenator of ECMO
TOPICS
DIC Products and Know-How Are Helping Improve the Safety of Thailand’s Roads
According to World Health Organization (WHO) statistics published in 2015, the traffic death rate in Thailand was 36.2 people per 100,000, second highest in the world and eight times the rate in Japan. In Japan, one strategy employed to increase traffic safety that has contributed to a reduction of accidents is colored pavement, which improves visibility for drivers. In Thailand, colored pavement has recently been used around airports and in tourist areas, but there have been complaints that not enough has been done to prevent road surfaces from becoming slippery in the rain. DIC Group company Siam Chemical Industry worked with a Japanese-owned formulator to conduct verification tests for a heat-blocking slip-resistant road surfacing material that balances two performance features that have proven successful in Japan, namely, slip-resistance and heat blocking, which is effective in countering the heat island effect and increasing the durability of roads. The company has since begun introducing this material to the Thai authorities. Going forward, Siam Chemical Industry will continue to capitalize on technologies developed by the DIC Group in Japan to help reduce the incidence of traffic accidents in Thailand and eliminate urban heat islands.
Road coated with heat-blocking slip-resistant surfacing material
Surface of bridge under construction (Siam Chemical Industry)
Ties with Customers
The DIC Group works to strengthen communication with its customers, placing a priority on gaining their understanding of its efforts and initiatives, in line with the basic policy of the DIC Vision 2030 longterm management plan. Principal avenues of communication include exhibitions and events, support for business partners, workshops, websites and social media.
Exhibitions
In fiscal year 2022, the spread of COVID-19 once again encouraged the DIC Group to use an online or hybrid format for certain exhibitions, presentations or other events.
Japan
- The DIC Group chose a hybrid format for its participation in the 2022 Tokyo International Packaging Exhibition (TOKYO PACK 2022), held in October, combing a physical booth with a virtual exhibition.
- The Group took part in both Sustainable Material Expo (SUSMA) shows in fiscal year 2022 (April and December), which focused on product solutions that contribute to the resolution of issues such as marine plastics and to decarbonization and the achievement of carbon neutrality via an on-site booth and a virtual platform.
- At the Fine Chemicals Japan 2022 next-generation chemical materials exhibition in April, the Group exhibited new functional materials that help conserve energy and reduce the weight of finished products, introducing its efforts to create new businesses to chemical manufacturers from around the world.
Other Countries and Territories
- Sun Chemical, which oversees DIC Group operations in the Americas and Europe, participated in a variety of exhibitions during the period. Notable among these was In-Cosmetics Global 2022, held in March in Paris, France, where it displayed organic pigments for cosmetics, shining a spotlight on sustainable solutions featuring natural materials.
- In Asia, DIC Asia Pacific and DIC South Asia Private Limited collaborated to exhibit a wide range of high-grade resins for coatings, applications for which are diverse, at PAINT INDIA 2022, one of India’s largest exhibitions of coatings and related materials, which took place in May in Mumbai.
Websites
To bolster communication with customers, the DIC Group expanded the content of its global website, as well as its official PRC and Asia– Pacific region websites. Improvements to the websites were also made to ensure that information shared by the Group is conveyed in an appropriate manner. Group company Sun Chemical also upgraded its website, improving links to information about products it sells in global markets with the goal of bolstering customer satisfaction. The Group also made use of social media, including Twitter, LinkedIn and Instagram, as a tool to attract more website traffic.
Digital Marketing
The DIC Group actively promotes digital marketing activities. In addition to expanding product information on Group websites, steps were taken in fiscal year 2022 to disseminate information on topics such as sustainable solutions, basic technologies and packaging.
The Group is also diversifying the digital marketing channels it uses to reach customers worldwide to include, among others, private websites and various third-party media.
In fiscal year 2023, the DIC Group will further expand digital content and strengthen its efforts to communicate with customers using varied approaches to disseminating information with the aim of improving customer value. Use of digital tools will also be increased to invigorate Groupwide collaboration in the area of marketing.
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