With Customers 8 Decent Work and Economic Growth 9 Industry, Innovation and Infrastructure 11 Sustainable Cities and Communities

Goals and Achievements of Major Initiatives

Propose solutions- oriented businesses that respond to social imperatives.

Goals for fiscal year 2018 Implement value chain-oriented marketing and emphasize two perspectives, namely, DIC Group products and customers/regions, with the goal of expanding the Group’s operating foundation and helping to increase consolidated net sales.
Achievements in fiscal year 2018 Through collaboration with biotech startups and efforts to create next-generation businesses such as thermally conductive fillers and environmental sensors, the DIC Group made steady progress toward entering promising new markets.
Evaluation ★★★
Goals for fiscal year 2019 Bolster collaboration with external organizations and promote prompt commercialization with the aim of advancing the creation of next-generation businesses that enhance sustainability and reinforce the Group’s ability to propose supply chain-oriented solutions.
Goals for fiscal year 2018 Participate in trade shows for key customer industr ies in Japan and overseas to strengthen the DIC brand and promote digitization to improve efficiency.
Achievements in fiscal year 2018 The DIC Group participated in major trade shows such as Tokyo Pack 2018, FINETECH JAPAN and CHINAPLAS 2018. Private exhibitions were also staged for customers.
Evaluation ★★★
Goals for fiscal year 2019 Participate in trade shows for key customer industries in Japan and overseas to strengthen the DIC brand and promote digitization to improve efficiency.
  • Evaluations are based on self-evaluations of current progress.
    Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work

New Pillar Creation: Promote New Businesses that Respond Accurately to the Changing Needs of Society

The DIC Group sees one of its key missions as being to achieve sustainable growth both for itself and society by helping to address social imperatives related to climate change, the digitization of society, urbanization and longevity by identifying key business domains and providing products that respond to such imperatives.
With the goal of swiftly realizing this mission, DIC has outlined two basic business development strategies in its new medium-term management plan, DIC111: “Value Transformation” and “New Pillar Creation.” In line with the strategy of Value Transformation, the Group will advance qualitative reforms in existing core businesses by shifting to businesses with differentiated high-value-added products and with more of a focus on social value. New Pillar Creation emphasizes creating new businesses by identifying areas where ESH-related issues and social changes intersect with the DIC Group’s competencies. This strategy continues to guide a number of key initiatives, several of which are described below.

Designing a Framework for New Pillar Creation

The DIC Group’s success in providing new products and services that benefit society and creating new businesses will depend on how well it understands the sources of its competitiveness and whether it can swiftly and accurately identify social imperatives and needs. The ability to take responsibility for seeing the development process through to commercialization is particularly crucial. Accordingly, rather than depending on a conventional marketing-led approach to development, the Group has designed a framework centered on a deployment team that is charged with facilitating the design of new businesses by overseeing everything from planning and development through to production and sales, thereby ensuring that efforts to create new businesses optimize overall capabilities and are strategically effective.
Having established the New Business Development Headquarters to serve as the deployment team and identified four segments, the DIC Group will leverage its ingenuity to advance the creation of new products that are useful to society and next-generation businesses with the potential to become mainstays.
The DIC Group will also bring together people from technical and sales backgrounds with detailed understanding of the new segments and people with experience in related industries with the aim of enhancing expertise and communications capabilities, as well as make active use of open innovation—including through participation in initiatives involving collaboration between industrial concerns and academia and by capitalizing on external resources—to promote the timely development and commercialization of products that benefit society.

Priority Areas of the New Business Development Headquarters

Examples of New Pillar Creation

01Leveraging Compounding Technologies to Develop Heat Management Materials: Contributing to Peace of Mind and Comfort in the Electronics Field

While demand for ever-smaller and faster digital equipment continues to make lives more convenient, heat management is increasingly critical to ensure the safety of such devices. DIC is promoting the development of thermally conductive fillers that quickly diffuse and dissipate heat by applying a proprietary technology that simplifies the synthesis of inorganic oxide single crystals, to improve the crystallinity of inorganic fillers, as well as to control their shape and size. When used in molded plastic items, the characteristic shape and high crystallinity of particles in these innovative fillers is expected to exhibit the high thermal conductivity inherent in crystals, further enhancing mechanical properties.

Newly developed specialized thermally conductive fillers

02Applying Composite Technologies to the Development of Environmental Sensors: Using Digital Transformation to Create Comfortable Environments

Smart buildings, which make use of technologies that optimize office buildings’ use of electric power, thereby contributing to decarbonization, and well buildings, which leverage technologies that improve the comfort and health of people are crucial to urban sustainability. DIC recently developed a sensor for detecting internal temperature, humidity and light intensity in commercial complexes, office buildings and other facilities and in fall 2018 began verification testing in collaboration with several other companies. Using DIC Group composite technologies enabled DIC to realize a groundbreaking wireless environmental sensor with a casing that is thin (5.0mm), light (20g), soft and flexible, making it easy to install and remove in any location. This flexible casing was made possible by the use of SunTronicTM conductive inks to print circuits on sensor substrates.
The use of DIC’s DAITAC® removable adhesive tape for mounting the sensor facilitates installation and removal simply by sticking on and peeling off.
Going forward, the DIC Group aims to supply sensors not only as independent products but also as part of comprehensive packages that also include other necessary equipment and services, thereby reinforcing its ability to provide solutions that help respond to social imperatives.

Flexible printed substrate of DIC’s new wireless environmental sensor

03TrinDyTM Compounds for 3D Printers: Combining Technologies to Bolster Efficiency and Convenience in the Health Care Field

With the number of elderly patients needing dental treatment rising, a shortage of dental technicians who construct custom-made dental prosthesis has become a critical concern. One focus of efforts to address this issue has been to improve the efficiency of processes used in prosthesis construction, which has led to the increasing popularity of prosthesis created using 3D printing.
Because 3D printers can faithfully transform scanned data into 3D shapes, they are used widely in areas where high-precision molding is required. Combining its proprietary polymer and compounding technologies, DIC succeeded in developing TrinDyTM, a series of compounds for stereolithography — a form of 3D printing that cures with UV light—that achieve improved molding precision and strength. DIC is currently expanding its lineup to include products for implant surgical guides and dental impressions, among others, and is preparing to apply for approval under ISO 13485, the International Organization for Standardization’s standard for quality management systems in the area of medical devices, in line with its goal of providing products that respond effectively to structural changes in society attributable to digitization.

3D-printed dental prosthesis made with TrinDyTM

Encouraging Familiarity with DIC Group Materials

The DIC Group participates in a variety of major trade shows every year with the aim of encouraging familiarity with the DIC Group products and development efforts. In fiscal year 2018, the Group introduced materials that will contribute to a stress-free digital society at FINETECH JAPAN (Makuhari, Chiba Prefecture), the JPCA Show (Tokyo Big Sight) and Chemical Materials Japan (Yokohama, Kanagawa Prefecture), materials relevant to the issue of marine plastic at Tokyo Pack 2018 (Tokyo Big Sight) and health- and safety-related products at FOOD TABLE in Japan 2018 (Makuhari, Chiba Prefecture). Overseas, the Group exhibited plastic materials that help reduce the weight of vehicles at PLASTINDIA 2018 (Gandhinagar, Gujarat) and CHINAPLAS 2018 (Shanghai) and took part in a variety of segment-specific events, including Paint India 2018 (Mumbai), Security Printers 2018 (Dublin, Ireland), and in-Cosmetics Global 2018 (Amsterdam), to promote dialogue with a wide range of stakeholders.
In fiscal year 2019, the DIC Group will again take part in key trade shows to introduce Group products, development efforts and core technologies, hear the views of stakeholder, with the aim of realizing distinctively DIC materials that resolve challenges and are useful to society.

FINETECH JAPAN

FINETECH JAPAN

VOICE

We are working to create next-generation businesses that will ensure a sustainable future for everyone.

Manager, New Business Development Headquarters Nobuo Kobayashi

In formulating our new medium-term management plan, DIC111, we held extensive discussions on how to best incorporate sustainability, represented by the SDGs, into the creation of next-generation businesses. One conclusion this process yielded was that there was a need for another scale— namely, sustainability indicators—for assessing businesses. That prompted us to revisit the question of who “sustainability" is for.
Our goal is not to promote sustainability exclusively for customers, nor is it only a way for us to fulfill our responsibility as a corporate citizen. Rather, we must seek to ensure a sustainable future for everyone—the DIC Group, including the employees engaged in production, the customers who use our products, and also society, to which our products ultimately contribute. This belief will continue to guide our efforts to create nextgeneration businesses.

Manager, New Business Development Headquarters Nobuo Kobayashi

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

Road coated with heat-blocking slip-resistant surfacing material

Surface of bridge under construction (Siam Chemical Industry)

Surface of bridge under construction (Siam Chemical Industry)

遮熱滑り止め舗装の構成図/遮熱のメカニズム

Ties with Customers

Guided by the basic policy of its previous medium-term management plan, which emphasized the focused allocation of management resources in key business domains, in fiscal year 2018 the DIC Group took part in numerous trade shows in Japan and overseas. Such events provided valuable opportunities for the Group to communicate with its customers. In Japan, the Group participated in Chemical Material Japan 2018 in May, where it displayed sheet-form passive heat storage material and other advanced technologies, and in Tokyo Pack 2018, held in October 2018, where it exhibited a variety of products that demonstrate the value that the Group provides to its customers. These included a new waterand oil-resistant coating varnish for the interior surfaces of paper food packaging that was developed as a uniquely DIC solution to help address such key social imperatives such as marine plastic. Overseas, the Group took part in Paint India, one of India’s largest exhibitions of coatings and related materials, in March 2018, with the aim of strengthening its communication with customers in the rapidly growing Asian market.
In commemoration of its 110th anniversary, in February 2018 DIC welcomed a total of approximately 1,000 customers and suppliers to events in Tokyo, Nagoya and Osaka, reiterating its commitment to growing together with its customers. In April 2018, the Group established the DIC Packaging Solution Center, a facility for collaboration with customers in the development of packaging, primarily for food products and everyday commodities, from planning and design through to commercialization. The following month, DIC held an event at corporate headquarters to mark the launch of the Asia Color Trend Book 2019 E0 to unveil the latest edition of this unique publication and introduce initiatives that embody the Group’s Color & Comfort brand slogan, while at the same time creating new value by providing an opportunity for interaction among people from various industries. On another front, DIC continued employing a dedicated system in operation since 2013 to measure the portion of sales accounted for by repeat customers, using this as an indicator to measure customer satisfaction, as well as to working to grasp and improve customer satisfaction.

CITE Japan

CITE Japan

110th anniversary celebration

110th anniversary celebration

Digital Marketing

The DIC Group actively promotes digital marketing activities. In the past, communication with customers centered on sales visits and other face-to-face efforts. However, with the increasing dominance of electronic communications, including email, social media and websites, the focus for customers has rapidly shifted to these media. Accordingly, the DIC Group has introduced marketing automation designed to more effectively utilize electronic communications channels with the aim of responding swiftly to customer requests. The Group will continue working to enhance its communications with customers by ensuring its ability to address inquiries in a timely manner.

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