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[ Full Report ]

SHOWA DENKO CSR Report 2014 1

CONTNETS

Editorial Policies / Report Scope …………………………………………………………………………………… 2

An Overview of the Showa Denko Group ………………………………………………………………………… 3

Introduction of businesses of the Group …………………………………………………………………………… 4

Financial/Non-Financial Highlights ………………………………………………………………………………… 5

Message from CEO ………………………………………………………………………………………………… 7

Special Feature

PEGASUS Phase Ⅱ Launched 1. Interview with CEO ………………………………………………………… 9

2. About "Growth" Businesses ……………………………………………… 20

3. CSR Activities That Target the Entire Value Chain ………………………… 24

CSR Policies of Showa Denko

Businesses and CSR of the Showa Denko Group …………………………………………………………… 34

Our Vision …………………………………………………………………………………………………… 36

CSR Policy, Plan, and Promotion Framework ……………………………………………………………… 39

Corporate Governance ………………………………………………………………………………………… 45

Human Rights …………………………………………………………………………………………………… 48

Corporate Ethics and Compliance ……………………………………………………………………………… 51

Risk Management ……………………………………………………………………………………………… 53

Labor Practices ………………………………………………………………………………………………… 56

Fair Business Practice and Customer Care ……………………………………………………………………… 65

Information Disclosure and IR …………………………………………………………………………………… 69

Local Community and Social Contribution ……………………………………………………………………… 72

Responsible Care Activity

Responsible Care Management …………………………………………………………………………… 78

Responsible Care Action Plan ……………………………………………………………………………… 81

Resource Use and Environmental Impact ………………………………………………………………… 89

Environmental Conservation Global Warming Prevention Measures ………………………………… 90

Reducing Industrial Waste …………………………………………… 95

Reducing Chemical Substance Discharge ……………………………… 97

Biodiversity Efforts …………………………………………………… 98

Safety and Disaster Prevention …………………………………………………………………………… 99

Occupational Health and Safety …………………………………………………………………………… 102

Chemical Substances Safety ……………………………………………………………………………… 108

Quality Assurance ………………………………………………………………………………………… 111

Performance Data Collection …………………………………………………………………………………… 114

List of Data Collection Boundaries ……………………………………………………………………………… 131

Third-party Verification ………………………………………………………………………………………… 133


Editorial Policies/ Report Scope

Editorial pol icies Report Scope

This Report has been edi ted as an annual report on non-f inancial information, present ing effort sby the Showa Denko Group to contr ibute to the environment and society. For detai led f inancial information, please refer to the Financial Resul ts and Financial Statements .

Investor Relat ionsAs for disclosure i tems, we analyzed our s takeholders ' opinions and requests and covered pr ior i t ytopics , focusing on act ion pol icies and performance in 2013 and giving specif ic examples .

Period covered by this Report

This Report covers information for the period January 1 to December 31, 2013, with som einformation also provided for 2013. The term “the year” as used in this Report refers to the 201 3calendar year . The term “fiscal year” as used in this Report refers to the period from Apri l 1 ,2013, through March 31, 2014.

Organization covered

“Showa Denko” as used in the text of this Report refers to Showa Denko K.K. , while “Show aDenko Group” refers mainly to Showa Denko and i ts consol idated subsidiar ies in Japan. Th efinancial performance data provided herein are consol idated f igures for the Showa Denko Group;environmental performance data are for Showa Denko K.K.Where environmental performance data include f igures for Group member companies , the scope o fappl icabi l i ty is noted for each category of data . Social performance data provided herein represen tinformation and f igures for Showa Denko K.K. Information on consol idated subsidiar ies in Japa nand abroad has been added to the sect ions of Community Relat ions and Employee Relat ions .

List of dta col lect ion boundaries

Publication date

July 2014(The next edi t ion is scheduled for publ icat ion in July 2015. )

Guidelines/guidance referenced

ISO 26000 (2010)Sustainabi l i ty Report ing Guidel ines (Version 3.1) f rom the Global Report ing Ini t ia t ive (GRI)

Environmental Report ing Guidel ines 2012 from the Ministry of the Environment of Japa n

Prepared by

Public Relat ion Office , Showa Denko K.K.13-9, Shiba Daimon 1-chome, Minato-ku, Tokyo 105-8518, JapanTEL：03-5470-3235

Editorial policies

Report scope


Editorial pol icies Report Scope

This Report has been edi ted as an annual report on non-f inancial information, present ing effort sby the Showa Denko Group to contr ibute to the environment and society. For detai led f inancial information, please refer to the Financial Resul ts and Financial Statements .

Investor Relat ionsAs for disclosure i tems, we analyzed our s takeholders ' opinions and requests and covered pr ior i t ytopics , focusing on act ion pol icies and performance in 2013 and giving specif ic examples .

Period covered by this Report

This Report covers information for the period January 1 to December 31, 2013, with som einformation also provided for 2013. The term “the year” as used in this Report refers to the 201 3calendar year . The term “fiscal year” as used in this Report refers to the period from Apri l 1 ,2013, through March 31, 2014.

Organization covered

“Showa Denko” as used in the text of this Report refers to Showa Denko K.K. , while “Show aDenko Group” refers mainly to Showa Denko and i ts consol idated subsidiar ies in Japan. Th efinancial performance data provided herein are consol idated f igures for the Showa Denko Group;environmental performance data are for Showa Denko K.K.Where environmental performance data include f igures for Group member companies , the scope o fappl icabi l i ty is noted for each category of data . Social performance data provided herein represen tinformation and f igures for Showa Denko K.K. Information on consol idated subsidiar ies in Japa nand abroad has been added to the sect ions of Community Relat ions and Employee Relat ions .

List of dta col lect ion boundaries

Publication date

July 2014(The next edi t ion is scheduled for publ icat ion in July 2015. )

Guidelines/guidance referenced

ISO 26000 (2010)Sustainabi l i ty Report ing Guidel ines (Version 3.1) f rom the Global Report ing Ini t ia t ive (GRI)

Environmental Report ing Guidel ines 2012 from the Ministry of the Environment of Japa n

Prepared by

Public Relat ion Office , Showa Denko K.K.13-9, Shiba Daimon 1-chome, Minato-ku, Tokyo 105-8518, JapanTEL：03-5470-3235

Editorial policies

Report scope



An Overview of the Showa Denko Group


Introduction of businesses of the Group


Financial/Non-Financial Highlights


Business performance in 2013

Message from CEO


Business performance in 2013


We establ ished a subsidiary, Showa Denko SichuanCarbon, by acquir ing Sinosteel Sichuan Carbon, aChinese integrated graphi te e lectrode manufactur ingcompany.

Special Feature PEGASUS Phase Launched

Please look back 2013 and Phase I (2011 - 2013).

In 2013, the sales was 850 bi l l ion yen against the target of 1 t r i l l ion yen, and the operat ingprofi t was 26 bi l l ion yen against the target of 80 bi l l ion yen in comparison with the ini t ia ltargets of the f ive-year medium-term business plan “PEGASUS” from 2011, which we formulatedin the la t ter half of 2010.There were drast ic changes in macro economy including the rapid appreciat ion of yen in theforeign exchange market , cost increase due to r ise of e lectr ic i ty charges and pr ices of rawmater ials and fuels including natural gas in the af termath of the Great East Japan Earthquake,economic cr is is in Europe and decelerat ion of growth in China and other emerging countr ies . Inrelat ion to our business , the graphi te e lectrode business in the Inorganics segment par t icular lylargely fel l short of the ini t ia l target because the business environment largely changed as aresul t of demand adjustment in the s teel industry due to worldwide economic s tagnat ion andoverproduct ion in China. The rare ear ths business in the Electronics segment a lso largely fel lshort of the ini t ia l target because both the business scale and prof i tabi l i ty largely fel l short ofthe ini t ia l plan in the af termath of increase in mater ial pr ices caused by the export restr ic t ionimposed by the Chinese government in 2011.

Tell us about the progress of business enhancement measures during Phase I .

Regarding the hard disk media,which is our core business , weexpanded our global share andestabl ished a posi t ion as the topoutside sales manufacturer that canexpect more s table operat ingrevenue. While the shipping volumeof hard disk hi t the wal l due to shif tf rom PC to smartphone and tabletPC, we t ransformed our business toensure cer tain revenue by precisely al igning product ion and inventory management to the actualdemand t rend.In the graphi te e lectrode business , we acquired a local graphi te e lectrode manufacturer in Chinalast year , with an aim to expand our business to general-purpose products mainly used in theemerging market where a large growth is expected in the future, in addi t ion to the high-endproducts for large-scale e lectr ic furnace in the Western and Japanese markets , on which we havean edge.We have soundly implemented competi t iveness enhancement procedures such as s t ructural reformand narrowing down of research and development themes in the aluminum business , and bel ievethat we successful ly s t rengthened the businesses across our Group.

Medium-Term Business Plan PEGASUS (2011 - 2015)The medium-term business plan PEGASUS is our growth s t rategy named af ter the winged horse inGreek mythology, which posi t ions our core businesses , hard disk and graphi te e lectrodes, as twowings to br ing the Showa Denko Group to a higher s tage.The Showa Denko Group contr ibutes toward creat ing a society where aff luence and sustainabi l i tyare harmonized by providing products and solut ions created with evolving, individual izedchemicals in the two business domains of “Energy/Environment” and “Electronics .”

Looking back 2013 and Medium-Term Business Plan "PEGASUS"

Overview of Medium-Term Business Plan PEGASUS Phase II (2014 - 2015)

Relationship between Business Strategies and SustainabilityStrategies

Looking back 2013 and Medium-Term Business Plan “PEGASUS”

Special Feature PEGASUS Phase Ⅱ Launched


We establ ished a subsidiary, Showa Denko SichuanCarbon, by acquir ing Sinosteel Sichuan Carbon, aChinese integrated graphi te e lectrode manufactur ingcompany.

Special Feature PEGASUS Phase Launched

Please look back 2013 and Phase I (2011 - 2013).

In 2013, the sales was 850 bi l l ion yen against the target of 1 t r i l l ion yen, and the operat ingprofi t was 26 bi l l ion yen against the target of 80 bi l l ion yen in comparison with the ini t ia ltargets of the f ive-year medium-term business plan “PEGASUS” from 2011, which we formulatedin the la t ter half of 2010.There were drast ic changes in macro economy including the rapid appreciat ion of yen in theforeign exchange market , cost increase due to r ise of e lectr ic i ty charges and pr ices of rawmater ials and fuels including natural gas in the af termath of the Great East Japan Earthquake,economic cr is is in Europe and decelerat ion of growth in China and other emerging countr ies . Inrelat ion to our business , the graphi te e lectrode business in the Inorganics segment par t icular lylargely fel l short of the ini t ia l target because the business environment largely changed as aresul t of demand adjustment in the s teel industry due to worldwide economic s tagnat ion andoverproduct ion in China. The rare ear ths business in the Electronics segment a lso largely fel lshort of the ini t ia l target because both the business scale and prof i tabi l i ty largely fel l short ofthe ini t ia l plan in the af termath of increase in mater ial pr ices caused by the export restr ic t ionimposed by the Chinese government in 2011.

Tell us about the progress of business enhancement measures during Phase I .

Regarding the hard disk media,which is our core business , weexpanded our global share andestabl ished a posi t ion as the topoutside sales manufacturer that canexpect more s table operat ingrevenue. While the shipping volumeof hard disk hi t the wal l due to shif tf rom PC to smartphone and tabletPC, we t ransformed our business toensure cer tain revenue by precisely al igning product ion and inventory management to the actualdemand t rend.In the graphi te e lectrode business , we acquired a local graphi te e lectrode manufacturer in Chinalast year , with an aim to expand our business to general-purpose products mainly used in theemerging market where a large growth is expected in the future, in addi t ion to the high-endproducts for large-scale e lectr ic furnace in the Western and Japanese markets , on which we havean edge.We have soundly implemented competi t iveness enhancement procedures such as s t ructural reformand narrowing down of research and development themes in the aluminum business , and bel ievethat we successful ly s t rengthened the businesses across our Group.

Medium-Term Business Plan PEGASUS (2011 - 2015)The medium-term business plan PEGASUS is our growth s t rategy named af ter the winged horse inGreek mythology, which posi t ions our core businesses , hard disk and graphi te e lectrodes, as twowings to br ing the Showa Denko Group to a higher s tage.The Showa Denko Group contr ibutes toward creat ing a society where aff luence and sustainabi l i tyare harmonized by providing products and solut ions created with evolving, individual izedchemicals in the two business domains of “Energy/Environment” and “Electronics .”




Looking back 2013 and Medium-Term Business Plan “PEGASUS”


Dysprosium-free magnetic al loyWe successful ly developed neodymiummagnet a l loy that has a s imilar performanceto convent ional products without usingdysprosium, a rare ear th that is added toimprove the heat resis tance of neodymiummagnet , and s tar ted mass product ion. Thisexemplif ies development and sophist icat ionof our products and technologies .

Plast ic recycle plant at Kawasaki PlantWe chemical ly recycle used plast ics toproduce a mater ia l to synthesize ammonia.We enhance the competi t iveness of ammoniaproduct chain by improving the processingcapaci ty and increasing the percentage oflow-cost mater ial source.

Special Feature PEGASUS Phase

We started PEGASUS Phase I I in 2014.

We incorporated large changes in economic s t ructure and environment during Phase I (2011 to2013) in the la t ter-half plan of Pegasus, Phase II , and reviewed the business plan. Our businessenvironment dramatical ly changed during Phase I . These changes include Lehman cr is is ,economic cr is is in Europe, growth of emerging countr ies , the Great East Japan Earthquake, whichchanged the electr ic i ty/energy supply s t ructure in Japan, and hol lowing-out of industry in Japandue to superstrong yen that cont inued unt i l 2012. We not only addressed these changes but a lsoant icipated and incorporated future environment changes into our management plan. We alsoadded new growth businesses to our business portfol io in order to take rapid shif t of economicstructure to emerging countr ies into considerat ion and expand our unique products andtechnologies , which are competi t ive in the global market .

Resul ts for 2013 Plan for 2014 Plan for 2015

Sales 8,481 8,800 9,500

Operat ing income 260 320 500

Net income 91 140 250

ROA（％）* 2.6 3.2 5.0

Return on assets

Tell us about the focus measures for Phase I I .

Our focus measures are accelerat ion of overseas deployment , improvement of prof i tabi l i ty of“Base (Stable)” businesses , cost reduct ion, and M&A and al l iance.

For accelerat ion of overseas deployment , our pr ior i ty is to include the growth of Asia , which isexpected to cont inue to grow driving the global economy. We especial ly focus on businessexpansion of a luminum cans, high-puri ty aluminum foi l , semiconductor-processing high-puri tygases, and funct ional chemicals in Asia as Growth businesses .

To improve the profi tabi l i ty of “Base (Stable)” business , we focus on “development andsophis t icat ion of products and technologies”, “exploi ta t ion of new demand and market” ,“integrat ion of business locat ions”, “enhancement of competi t iveness by updat ing faci l i t ies”, and“effect ive use of e lectr ic i ty resources.”For cost reduct ion, we aim to reduce 20 bi l l ion yen for the two years in Phase II . We plan toreduce 7 bi l l ion yen as an accumulated resul t of our cont inuous cost reduct ion act ivi t ies and thenreduce 13 bi l l ion yen with s t ra tegic measures such as radical product ivi ty improvement of harddisk and s t rengthening of processing capaci ty of the plast ic recycle plant a t Kawasaki Plant .We posi t ion M&A and al l iance as important means to acquire new business opportuni t ies . We areaware that i t is worthwhile to consider them in businesses for which we have uniquecompeti t iveness . We wil l locate the source of our business competi t iveness and act ively use theseapproaches in the f ie lds where we f ind effect ive.

Tell us about the strategies for the main businesses.

We reviewed our portfol io and reorganized i t into"infrastructure (s tabi l i ty) ," " infrastructure (growth)" "growth," and "new (development)" a tPhase II .

“Base (Growth)” businesses

We posi t ion hard disk media and graphi te e lectrodes as the main businesses , whichare compared to the two wings of Pegasus that dr ive our growth, as in Phase I .However , a large numerical growth cannot be expected, because the hard disk mediawil l experience appl icat ion shif t f rom PC to server during Phase II . The recovery ofbusiness condi t ion of graphi te e lectrodes is a lso expected to be s low as low demandis prolonged due to oversupply in China in emerging markets though i t seems tohave hi t the bot tom in the US and Europe. Because both the hard disk media andgraphi te e lectrodes businesses wil l cont inue to have a s t rong presence in the globalmarket in the future, we posi t ion Phase II as an important s tep to prepare for returnto the or iginal growth path.

“Growth” businesses

During Phase II , we posi t ion aluminum cans, high-puri ty a luminum foi l ,semiconductor-processing high-puri ty gases , and funct ional chemicals as new“Growth” businesses and enhance them.Although the scales of these businesses are not so large, they have common pointsthat they are dis t inct businesses unique to the Showa Denko Group and marketexpansion can be expected mainly in Asia , which is cont inuing a s t rong growth. Weexpand both the business scale and revenue during Phase II .

“Base (Stable)” businesses

As many of Base (Stable) businesses adopt convent ional business models , whichdepend on the domest ic market , their revenue base was largely s tagnated duringPhase I when customers shif ted product ion to overseas and yen was appreciated.During Phase II , we accelerate s t ructural reform to address such environmentalchanges and improve profi tabi l i ty .In the petrochemicals business , we promote development and sophist icat ion ofproducts and technologies for example by commercial iz ing acetaldehyde methodbutadiene to improve the competi t iveness of Oita complex. In addi t ion, we promotemass product ion of dysprosium-free magnet ic a l loy in rare ear ths business , ra ise therat io of the mater ia l made from recycled plast ics to synthesize ammonia inchemicals business , and exploi t the emerging market for a luminum business byestabl ishing new product ion plant for SHOTICTM (cont inuously cast a luminumrods) in Malaysia .

“New Growth” businesses (to be developed)

In one of the business domains in Pegasus, the “Energy/Environment” f ie ld , weposi t ion SiC epi taxial wafer for power devices , fuel cel l catalysts , and LIBmater ials including anode mater ials and packaging mater ials as “New Growth”businesses ( to be developed) and enhance them toward the next management planafter Pegasus. Although each of them is on a different commercial izat ion s tage, a l lof these business areas are expected to have large markets in several years .Therefore, we wil l grow them into the next-generat ion large businesses by spendingbusiness resources including those for research and development .

Phase II is not only the la t ter half per iod of the medium-term business plan, Pegasus, but a lso apreparat ion period for the plan af ter Pegasus. Therefore , we thoroughly improve the profi tabi l i tyof hard disk media and graphi te e lectrodes, which are expected to remain the core businessesaf ter Pegasus, and develop and enhance the “Growth” businesses , which wil l be the next- termcore businesses . We also enhance the competi t iveness of “Base (s table)” businesses , of whichrevenue base was weakened.




Overview of Medium-Term Business Plan PEGASUS Phase II (2014-2015)








Sales 8,481 8,800 9,500



ROA（％）* 2.6 3.2 5.0

Return on assets





















A variety of products that support the l iving base We effectively util ize usedwastes.

Environment fr iendly ammoniaECOANN™

Support the foundation of advanced information society for affluent l ife

Hard disk

Graphite electrodes that help save resources and energy

Graphi te e lectrode

Products made of environment-conscious aluminum bring affluence an dsustainability to our l ife.

Aluminum electrolyt ic capaci tor

SiC epi taxial wafer

Anode materia l for l i thium ion secondary bat ter ies SCMG™


What contribution do you think we can make to solve social challenges?

The modern society faces a variety of social chal lenges such as global environment and energ yproblems, water and food shortage due to increase in populat ion, nursing care and medicalt reatment issues. As a solut ion provider , the Showa Denko Group aim to real ize “a compan ycontr ibut ing to the sound growth of society” as defined in our corporate vis ion, by providin gmany products , technologies and services that solve these chal lenges to the internat ional society .

We have technical basis in a wide range of f ie lds , which are organics, inorganics, and metals ,and have provided innovat ive products that integrate these f ie lds to the society. We now conduc tbusiness act ivi t ies in a wide range of f ie lds including pet rochemicals , chemicals , e lectronics ,inorganics , and aluminum, and our various products play act ive roles in many different scene sand support our l i fe .The Showa Denko Group wil l cont inue to develop and provide products and technologies tha tcontr ibute toward creat ing a society where aff luence and sustainabi l i ty are harmonized in the tw obusiness domains set in Pegasus, “Energy/Environment” and “Electronics ,” to sat isfy needs on aglobal scale .

The Showa Denko Group supports people’ severyday l i fe and industry by providing a widerange of mater ia ls f rom basic petrochemicals suchas ethylene and propylene, their derivat ives, whichare acetyl-derivat ives or a l lyl-alcohol-derivat ivesand other organics , basic chemicals such asl iquefied ammonia and acryloni t r i le , industr ia lgases , funct ional chemicals such as unsaturatedpolyester resin, e lastomer products such aschloroprene rubber through semiconductor -processing high-puri ty gases .For example , we s t r ive to ensure s table supply o fproducts essent ia l to maintain the social infrastructure including sodium hypochlori te , which isused for s ter i l izat ion in water supply and sewage systems, and l iquefied ammonia , which is usedto deni t rate gas emit ted from thermal power plants .In addi t ion, we use mater ia ls recycled from used plast ics . For example, we provide a l iquefiedammonia product , “Environment-Conscious Ammonia ECOANN TM,” for a var ie ty of appl icat ionsincluding deni t rat ion. In our Kawasaki Plant , there is a plant (KPR: Kawasaki Plast ic Recycl in gPlant) that can reuse almost 100% of used plast ics , which are divided into many types, an dtherefore, diff icul t to recycle . With this plant , we contr ibuted to creat ion of recycl ing-oriente dsociety and reduced CO2 emissions by 35% in comparison to the convent ional process to produceammonia.

Convenient and aff luent l i fe in the modern societyis real ized by information terminals such assmartphone and PC and a var ie ty of communicat ionnetworks including publ ic and private networksused to generate , mutual ly connect and leverageinformation. Information s torage as wel l a sinformation communicat ion and informationprocessing are essent ia l to construct such aninformation society. In addi t ion, a higher s toragecapaci ty is expected to be demanded in l ine withdevelopment of c loud computing and high-capaci tycommunicat ion infrastructure .We posi t ion hard disk as one of our core businesses. With rapid growth of c loud services usin gsmartphone, tablet or other devices , the amount of information accumulated in the datacente rcont inues to increase. As big data is increasingly used, the value of accumulated informatio nrises and the needs for data s torage is expected to fur ther increase. We wil l cope with fur therexpansion of the market of hard disk, which supports the foundat ion of data s torage, whic hserves as the infrastructure to improve convenience for people using these cloud services and bi gdata . We wil l a lso s teadi ly support next-generat ion technologies to cope with needs for higher-capaci ty s torage.

Graphi te e lectrodes, which we posi t ion as one of our corebusinesses, are consumables used to generate hightemperature in electr ic furnaces that melt scrap of variousused s teel products . Graphi te e lect rodes support recycle ofi ron scrap, which are important resources reused as bui ldin gmaterials to construct bui ldings and bridges and other basi cmaterials in the society. In addi t ion, e lectr ic s teelmakingemits less CO 2 and uses less energy than the blast furnacemethod, which uses i ronstone as material for manufacturing ,and contr ibutes to global environment preservat ion .

Aluminum has many different features includingl ightness , s t rength, workabi l i ty , corrosion resis tance ,low-temperature resis tance and recyclabi l i ty . TheShowa Denko Group supports our aff luent l i fe andsustainable society by developing and providingproducts that make use of the great features ofaluminum.Aluminum is used in a var ie ty of l i fe scenes .Examples include high-puri ty aluminum foi l fo relectrolyt ic capaci tor , which is widely used for homeelectr ic appl iances, IT equipment , automobile-relatedequipment for e lectr ic , hybrid and other cars , to new energy f ie lds such as wind or solar energy ,aluminum cyl inder , which is a core part of laser beam printer , high-strength highly abrasion -resis tant a luminum al loy (product name: SHOTICTM ) used as par ts for car a i r condi t ioner , andl ightweight a luminum can with high recyclabi l i ty . The Showa Denko Group contr ibutes t ocreat ion of recycl ing-or iented society by promoting the aluminum can recycl ing act ivi ty i ncooperat ion with employees and cooperat ive f i rms while manufactur ing aluminum cans .

How does the Showa Denko Group associate society challenges with research anddevelopment?

We promote research and development in l ine with our mission to help the modern society solv esocial chal lenges and cont inue to create products required by the society. We focus on the f ie ld swhich we have an edge on, such as SiC epi taxial wafer for power semiconductor and l i thium io nbat tery mater ia ls , and real ize thei r commercial izat ion to contr ibute toward creat ing a societywhere aff luence and sustainabi l i ty are harmonized, which Pegasus is intended for .

SiC epitaxial wafer for power semiconductor

The SiC power semiconductor is a next-generat ionenergy-saving device. The SiC has a bet te rphysical i ty than the convent ional Si semiconductor ,can operate at a high temperature, withstands highvol tage and high current , and therefore , contr ibutesto reduct ion in s ize and weight of equipment . Thi ssemiconductor is a lso helpful in saving energy withi ts high electr ic i ty conversion eff ic iency .We provide the world-leading SiC epi taxial wafer ,which is used in this power semiconductor . Weestabl ished the mass product ion technology for 6"epi taxial wafer , which wil l be the mainstream in the future, while improving the qual i ty of th emainstream 4" epi taxial wafer . To meet the increasing demand, we wil l enhance the capaci ty an daccelerate technological development including development of new grade for ful l -f ledge dspread.

LIB materials

The l i thium ion bat tery (LIB) gathers a t tent ion fo relectr ic and hybrid cars , which are expected tospread in the future , and power s torage in the windand solar power generat ion system in l ine with anescalat ion in interest in global problems includingglobal warming.We provide packaging material and anode material ,which are main components of LIB.An ar t i f ic ia l graphi te anode materia l we developed ,“SCMGTM,” is highly appreciated as an anodematerial for e lectr ic or hybrid car bat tery as i texercises great character is t ics a t high current andthe charging character is t ic does not deter iorate even af ter repeated charging and discharging .This material can be also appl ied to the s tat ionary secondary bat tery in addi t ion to cars . We ai mto expand this business by developing appl icat ions and new processes that reduce costs .




Relationship between Business Strategies and Sustainability Strategies





Hard disk



















LIB materials







Showa Denko Aluminum (Nantong) Co. , Ltd .

Zhejang Quzhou Juhua Showa ElectronicChemical Materia ls Co. , Ltd.


The Showa Denko Group star ted manufacturing aluminum cans for beverages for the f i rs t t ime in Japa nin 1971. Since then, we have provided high-qual i ty aluminum cans for beverages at the integrate dprocess from forming of can body and can l id through print ing and has establ ished a s t rong posi t ion inthe Japanese market .This is a growth industry because the demand for a luminum can beverages is expected to grow by abou t5% to 15% per year in Asia including China and India , Middle East , Afr ica , South America and otherregions where the income standard is s ignif icant ly r is ing. We wil l a lso proact ively enter into businessoperat ion in emerging Asian markets , which are expanding.

Acquisition of Hanacans in VietnamThe Showa Denko Group acquired Hanacans inMay 2014. Hanacans is an aluminum canmanufacturer which has the top product ioncapaci ty and market share in the north and middleareas of Vietnam and completed introduct ion o fsta te-of- the-ar t product ion faci l i t ies in September2013. We wil l fur ther enhance our competi t ivenessin the Vietnamese market by adding product iontechnologies and process control expert ise of Showa Aluminum Can to the s t rong custome rfoundat ion of Hanacans.

We develop, manufacture and sel l high-puri ty aluminum foi l , which is the main component of a luminu melectrolyt ic capaci tors used for a variety of e lectr ic appl iances. The high-puri ty aluminum foi l largel ycontr ibutes to the performance and qual i ty of capaci tors and the character is t ics of our product are hig hfunct ional i ty and rel iabi l i ty . We have a manufactur ing plant that uses a proprietary technology cal ledthe CJ method to eff ic ient ly purify aluminum at Sakai Plant , and conduct purifying, rol l ing an dfinishing of a luminum in an integrated way.We are the largest manufacturer of this product in Japan and has over 50% share in the domest ic market .The market of a luminum electrolyt ic capaci tors is expanding in emerging countr ies , and is expected t ogrow by about 10% per year unt i l 2015. In par t icular , the demand for a luminum electrolyt ic capaci torsfor eco-cars and power condi t ioners for solar generat ion is expected to grow mainly in China. TheShowa Denko Group wil l cont inue to expand this business in China and other Asian countr ies as wel l a sin Japan by s tably supplying high-qual i ty high-puri ty aluminum foi l .

Establishment of Showa DenkoAluminum (Nantong)In October 2013, we opened the f inalprocessing s i te for high-puri ty a luminum foi lin Nantong, China, and s tar ted massproduct ion. We f inish intermediate productssuppl ied from Sakai Plant there to providehigh qual i ty high-puri ty a luminum foi l tousers across China in a t imely manner. Takingadvantage of the technologies and t rust that wehave accumulated over t ime as the top suppl ier , we wil l col laborate with local manufacturersand expand our share in China from the current value, which is about 10%, to 30% .

We produce and sel l high-puri ty gases used for e tching or as c leaning gas or f i lm formation material i nthe manufacturing process of semiconductor , LCD, LED, solar bat tery and other products .Our s t rength in the high-puri ty gas business is the world’s largest product l ineup that can support an ycustomer’s manufacturing process or product to be manufactured. In part icular , we wil l deploy busines sby leveraging our advantage for ammonia, hydrogen bromide, ni t rous oxide, and chlor ine. Then, we wil lincrease and enhance local bases in Korea, Taiwan and China, which are the core of semiconducto rproduct ion in the world.The demand for semiconductor is expected to increase in the future due to the development of ca relectr i f icat ion. We wil l expand the business scale in l ine with expansion of market .

Expansion of supply capacity of high-purity ammonia and nitrous oxideWe expand the supply capaci ty of high-puri tyammonia and ni t rous oxide, special ty gases forsemiconductor processing .For high-puri ty ammonia, we increased the annua lproduct ion from 1,000 ton to 2 ,000 ton at afaci l i ty of our manufactur ing subsidiary inZhej iang, China, and s tar ted operat ion in January2014.For ni t rous oxide, we concluded a workcommissioning agreement concerning theproduct ion of high-puri ty N2O with DooamIndustr ia l in Korea, and determined to construct joint ly a purif icat ion faci l i ty in their plant inthe suburb of Seoul . We wil l complete the faci l i ty in 2014 and start sales in 2015 .

Our Funct ional Chemicals Divis ion produces and sel ls many products f rom customized products t ogeneral-purpose products including a varie ty of synthet ic resins and their composi te mater ia ls ,biodegradable plast ic , Bionol leTM, s tabi l ized Vitamin C (ApprecierTM) and other cosmetic mater ia ls , UVpolymerizable mater ia ls that can be used for a wide range of appl icat ions including electronic mater ia ls ,resis t ink for PC board, mater ia ls for seal ing semiconductor and other resins for e lectronic materia ls andanalysis column.

One of our composi te mater ia ls , RigolacTM BMC, is of ten used for motor seal mater ia l in hybrid car andother car par ts . We expect that the demand fur ther increases in China and the ASEAN region, whereautomobile products are increasingly demanded. We also expand the business of vinylester an demulsion, which is used for houses and plant faci l i t ies , in China and the ASEAN region as their deman dis expected to increase .ShodexTM , a l iquid chromatography (HPLC) analysis product , is used to determine the quant i ty ofvarious organic compounds and recent ly gather more at tent ion for analysis in the environment f ie ld andother f ie lds . This is one of the most global ized business and two thi rds of products are sold overseas .A biodegradable plast ic , Bionol leTM, is a biodegradable resin that i s completely degraded into waterand carbon dioxide af ter use and has been adopted for compost bag and a variety of f i lms. The deman dfor this product is expected to fur ther increase because plast ic bags are reduced in Europe. For example,plast ic bags except for those made of biodegradable plast ic were banned in I ta ly.

The Funct ional Chemicals Division has a variety of products and combining them generates inf ini t epossibi l i t ies . We develop products that sat isfy customers’ needs in col laborat ion with other divis ionsand laboratories for rapid commercial izat ion .

Unsaturated polyester resin, RigolacTM, and Dust-proofing Polysol Lawnfixeco-700 contribute to restoration from the Great East Japan Earthquake.The demand for FRP (f iber-reinforced plast ic )increased toward restorat ion from the Great Eas tJapan Earthquake. Our unsaturated polyester resin ,Rigolac, was adopted in the FRP used for gasol inedouble-shel l tank, the outer shel l of thecontaminated water s torage tank in Tokyo Electr i cPower Company’s Fukushima Dai ichi Nuclea rPower Plant , and sept ic tank for temporaryhousing.In addi t ion, our dust-proofing Polysol Lawnfix eco700 was used as dust-resis tant agentsprinkled to prevent re-scat ter of radioact ive materia ls scat tered at the accident in th eFukushima Dai ichi Nuclear Power Plant , in order to prevent expansion of contaminated area .

Aluminum cans

High-purity aluminum foil

High-purity gases

Functional chemicals















Aluminum cans


High-purity gases



1)Self-evaluation

This is an act ivi ty where par tners check their CSR effor ts bythemselves . Par tners can understand the current level of theirCSR effor ts we expect f rom partners by answering aquest ionnaire (self-evaluat ion form) concerning our CSRprocurement guidel ines . For exis t ing business par tners , we askthem to complete this quest ionnaire once every three years . Fornew business par tners , we ask them to complete thequest ionnaire when s tar t ing deal ing with us . Par tners f i l l outand return the self-evaluat ion forms to us and our Purchasing &SCM Department a t headquarters analyzes the contents andprovide feedback to par tners .

Self-check sheet

Special Feature PEGASUS Phase !

Here we organized the Showa Denko Group’s main CSR act ivi t ies in l ine with al l processes (valuechain) f rom procurement of feedstock and mater ia ls to recycl ing and disposal . Our group contr ibutes tothe sustainable development of society by implementing CSR across the ent i re value chain.

Showa Denko s tar ted CSR procurement in 2009 to fur ther promote social ly andenvironmental ly conscious business act ivi t ies .

What is CSR procurement?By sharing the "Showa Denko Group CSR Procurement Guidel ines" with suppl iers (par tners) andasking them to comply with these guidel ines , CSR procurement by our group aims to improve thecorporate value of both our group and suppl iers . These guidel ines specif ical ly s t ipulate CSReffor ts that we expect f rom partners . In order to check the s ta te of compliance with theseguidel ines , we perform the fol lowing three act ivi t ies .

2)CSR visits

This is an act ivi ty where we vis i t par tners and check their CSR effor ts . The person in chargeof purchases a t each workplace vis i ts a total of about 60 par tner companies every year . Inaddi t ion to checking the resul t of self-evaluat ion form, they also interact with par tners aboutwhat we want to convey to them, what we want to know, conduct plant tours and on othermatters .

3)Follow-up

I f we f ind matters that must be checked and improved in re la t ion to conformance with theguidel ines through self-evaluat ion or CSR vis i ts , we work with the par tner to makeimprovements .

Building a win-win relationship through CSR procurement

Our Next ChallengeLast year , we expanded these act ivi t ies f rom ShowaDenko to our domest ic group companies and s tar tedasking their par tners to engage in CSR procurement . Inaddi t ion, we created Engl ish and Chinese vers ions ofthe CSR Procurement Guidel ines and publ ished them onour websi te . However , we have not yet supported non-Japanese languages for self-evaluat ion. Our futurechal lenge is expanding CSR procurement to overseaspartners .In addi t ion to act ively ut i l iz ing CSR procurement , thePurchase and SCM Departments bel ieve thatcommunicat ing with par tners is extremely important in the CSR procurement act ivi ty process .In the f ive years s ince the s tar t of CSR procurement , 2 ,000 business par tners , which accountsfor about half of a l l our business par tners (about 80% in terms of purchase amount) , performedself-evaluat ion. As a resul t of our CSR vis i ts , some par tners have even establ ished a CSRorganizat ion and s tar ted s imilar effor ts .Although we do not screen par tners according to self-evaluat ion resul ts , we wil l s t rengthen therelat ionship of t rust for both our company and par tners , as wel l as promote these act ivi t ies aseffor ts to real ize win-win resul ts while understanding and shar ing object ives .


1)Self-evaluation

This is an act ivi ty where par tners check their CSR effor ts bythemselves . Par tners can understand the current level of theirCSR effor ts we expect f rom partners by answering aquest ionnaire (self-evaluat ion form) concerning our CSRprocurement guidel ines . For exis t ing business par tners , we askthem to complete this quest ionnaire once every three years . Fornew business par tners , we ask them to complete thequest ionnaire when s tar t ing deal ing with us . Par tners f i l l outand return the self-evaluat ion forms to us and our Purchasing &SCM Department a t headquarters analyzes the contents andprovide feedback to par tners .

Self-check sheet



Showa Denko s tar ted CSR procurement in 2009 to fur ther promote social ly andenvironmental ly conscious business act ivi t ies .

What is CSR procurement?By sharing the "Showa Denko Group CSR Procurement Guidel ines" with suppl iers (par tners) andasking them to comply with these guidel ines , CSR procurement by our group aims to improve thecorporate value of both our group and suppl iers . These guidel ines specif ical ly s t ipulate CSReffor ts that we expect f rom partners . In order to check the s ta te of compliance with theseguidel ines , we perform the fol lowing three act ivi t ies .

2)CSR visits

This is an act ivi ty where we vis i t par tners and check their CSR effor ts . The person in chargeof purchases a t each workplace vis i ts a total of about 60 par tner companies every year . Inaddi t ion to checking the resul t of self-evaluat ion form, they also interact with par tners aboutwhat we want to convey to them, what we want to know, conduct plant tours and on othermatters .

3)Follow-up

I f we f ind matters that must be checked and improved in re la t ion to conformance with theguidel ines through self-evaluat ion or CSR vis i ts , we work with the par tner to makeimprovements .

Building a win-win relationship through CSR procurement

Our Next ChallengeLast year , we expanded these act ivi t ies f rom ShowaDenko to our domest ic group companies and s tar tedasking their par tners to engage in CSR procurement . Inaddi t ion, we created Engl ish and Chinese vers ions ofthe CSR Procurement Guidel ines and publ ished them onour websi te . However , we have not yet supported non-Japanese languages for self-evaluat ion. Our futurechal lenge is expanding CSR procurement to overseaspartners .In addi t ion to act ively ut i l iz ing CSR procurement , thePurchase and SCM Departments bel ieve thatcommunicat ing with par tners is extremely important in the CSR procurement act ivi ty process .In the f ive years s ince the s tar t of CSR procurement , 2 ,000 business par tners , which accountsfor about half of a l l our business par tners (about 80% in terms of purchase amount) , performedself-evaluat ion. As a resul t of our CSR vis i ts , some par tners have even establ ished a CSRorganizat ion and s tar ted s imilar effor ts .Although we do not screen par tners according to self-evaluat ion resul ts , we wil l s t rengthen therelat ionship of t rust for both our company and par tners , as wel l as promote these act ivi t ies aseffor ts to real ize win-win resul ts while understanding and shar ing object ives .




After processing, high-puri ty a luminum foi l is used as e lectrode foi l , the mainmater ia l for a luminum electrolyt ic capaci tors . Aluminum electrolyt ic capaci torsare incorporated in many electr ical appl iances around us such as TVs, a i rcondi t ioners , and power modules for cars and solar power generat ion, andcontr ibute to energy conservat ion.

What are aluminum electrolytic capacitors?Capaci tors are components that s tore or discharge electr ic i ty andinsulate direct current . They are essent ia l to e lectr icalappl iances . The aluminum electrolyt ic capaci tor in par t icular isof ten used in inverter modules that cont inuously change andcontrol the number of revolut ions a motor makes, contr ibut ing toenergy conservat ion.

The aluminum electrolyt ic capaci tor has a layered s t ructure where anode foi l , made by processinghigh-puri ty a luminum foi l , e lectrolyt ic paper , and cathode foi l are layered over each other . Theseare rol led, submerged in e lectrolyte , and then sealed in a cyl indrical a luminum case. Thealuminum electrolyt ic capaci tor is used in many products because of i ts abi l i ty to produce largeelectr ical capaci t ies (capaci tance) a t a low cost . The use of a luminum electrolyt ic capaci tors hasrecent ly expanded into energy-related appl icat ions such as solar and wind power generat ion aswell as areas that require compact yet high performance products such as f la t panel TVs.

To respond to requests from customers and contribute to energyconservation and creationCompared to those of a decade ago, AC adapters for laptop PCs have become signif icant ly smallerthanks to a luminum electrolyt ic capaci tors . Technological developments have led to theimprovements in performance of e lectrode foi l for capaci tors , and i t has enabled the capaci tori tself to become smaller .To increase the capaci tance of capaci tor , i t i s effect ive to increase the surface area of theelectrode mater ia l . In a product ion process of a luminum electrolyt ic capaci tor , the anode foi l isformed through electrolyt ic e tching of the high-puri ty a luminum foi l to generate numerous etchpi ts in order to increase i ts surface area. Then, on the surface of i t , we form aluminum oxide coatthrough chemical conversion coat ing. This coat performs as a dielectr ic . The high-puri tyaluminum foi l requires a qual i ty that can withstand the advanced etching techniques employed byour customers . By ut i l iz ing our unique Corjunal (CJ) method for a luminum purif icat ion andemploying integrated aluminum foi l manufactur ing processes f rom melt ing, cast ing to fol ia t ing,we engage in product development that provides customers with higher qual i ty , higher puri tyaluminum foi l ideal for e lectrolyt ic e tching.

To contribute to the sustainable development of society with endproducts

Our Next ChallengeHigh-puri ty a luminum foi l is used in a var ie ty ofelectr ical appl iances , which can be found in a lmostevery home. Because the use of this foi l cont inues toexpand into a var ie ty of f ie lds including the automotivef ie ld and ecology f ie lds such as solar power generat ion,combined with the fact that Japan is outs tandinglystrong in this f ie ld , we posi t ioned this business as a“Growth” business in the second half of the PEGASUSmid-term business plan.Last year , our company opened a plant in Nantong,China, that can perform f inal processing of the high-puri ty a luminum foi l provided from our Sakai Plant . Wewil l address the increasing demand for high qual i tyhigh-puri ty a luminum foi l in the Chinese market as wel l .


Work environment

The Isesaki Plant reviews common pract ices and rules with anaim that a l l workers wil l create together a plant that they canproudly introduce to their family members . For example, therewas an issue of the odor of solvent impact ing the workenvironment when the reactor was opened and closed. To solvethis problem, we reduced work that involved the source of theodor being opened, e l iminated the odor every t ime i t wasgenerated, and other effor ts to prevent odors . In addi t ion, weenclosed the sources of odors in workplaces where a largeamount of solvents are used, instal led deodorizat ion equipmentand exhaust gas incinerators , as wel l as other measures toremove the substances that cause odors .

Exhaust gastreatment faci l i ty



Showa Denko engages in product ion that pays close at tent ion to environmentprotect ion including the reduct ion of waste and environmental load, conservat ionof natural resources , energy conservat ion and other effor ts during al l product ionphases f rom product design to dis t r ibut ion. Here are some specif ic examples .

Isesaki PlantShowa Denko K.K. 's Isesaki Plant is engaged in thedevelopment and product ion of plast ic mater ia l used in awide range of industr ies and appl icat ions includingbui lding mater ia ls , automobiles , and informationequipment .

Environmental considerations during manufacturingThis plant consumes mater ia ls , resources , and energies such as e lectr ic i ty and gas to manufactureproducts . I t engages in the act ivi t ies descr ibed below in order to reduce environmental loadaccompanying i ts product ion act ivi t ies .

Water quality

We manage water discharge using twin systems. Hazardous substances in the discharged waterare t reated through biodegradat ion. The water qual i ty is checked using a measuring device anddischarged from the plant via the automated water gate only i f the water qual i ty is deemed tobe without any abnormali t ies . I f abnormal values indicat ing contaminants are detected, i t i sreported to the department in charge and the automated water gate is c losed. As the f i rs t s tepin creat ing an even more thorough system, this year , we instal led an auxi l iary pumping tank inSystem 1.

Air

This plant has two incinerators and mult iple boi ler faci l i t ies . Regarding the boi lers inpart icular , we are working to reduce the sources of a i r pol lut ion for example by switching thefuel used to natural gas ( in 2006) to reduce emissions of a i r contaminants , replacing boi lerswith high-eff ic iency boi lers , and consol idat ing boi ler pipes through s t reamlining of faci l i t ies .

Waste

Through our “Reduce, Reuse and Recycle effor ts” to date , we organized a system to reuse andrecycle waste s ludge from water discharge t reatment faci l i t ies , which had previously been sentto a landfi l l . Thus we achieved zero emissions in 2011 and have been cont inuing to do so.

Monitoring

We instal led odor sensors in s ix locat ions and noise sensors in three locat ions along theboundary of the premises to keep an eye on these problems 24 hours a day using monitors . I fabnormal values are detected, an alarm not i f ies everyone and we are able to immediately takeact ion. These sensors were introduct ion as res ident ia l houses were bui l t around the plant .

Resolving social issues that occurs during manufacturing

Our Next ChallengeA phenol blowout incident occurred at this plant in2010. Fol lowing this incident , we s tar tedcommunicat ing with the resident ' s associat ions ofneighboring areas . Last year , we organized plant toursfor these resident ' s associat ions, par t ic ipated in c leanupact ivi t ies a t a r iver deeply related to the area aroundthe plant and the plant i tself , as wel l par t ic ipated inlocal events in order to real ize a plant open to the localcommunity.Act ivi t ies to reduce environmental load are act ions thatshould be taken as a mat ter of course, and in thisregard, the Isesaki Plant is not the except ion. As regulat ions concerning the environment andchemical substances become increasingly s t r ic t , we hope to provide products that help peopleto solve social issues while giving even more considerat ion to the environment .


PFC decomposi t ion system “CD-200”

PFC decomposi t ion system “HB-3000”


Here we organized the Showa Denko Group’s main CSR act ivi t ies in l ine with al l processes (valu echain) from procurement of feedstock and materials to recycl ing and disposal . Our group contr ibutes t othe sustainable development of society by implementing CSR across the ent i re value chain .

Showa Denko works to solve social issues when our products are used i ncustomer processes. Here is an introduct ion to Showa Denko Group products tha tcontr ibute to solving social issues in the customer 's manufacturing process .

What is PFC decomposition system?

This is a system that t reats PFC (perf luorocarbon) gases af ter the yare used in the dry etching process to manufacture semiconductor sand LCD panels . In addi t ion to large-scale systems appropriate fo rproduct ion l ines for large LCD panels and other devices , ShowaDenko also offers a l ineup that includes systems for small- and mid -scale semiconductor product ion l ines , and systems for col lect ingwaste anesthet ic gases used for anesthesia in medical inst i tut ions .The number of companies ut i l iz ing this system has been increasin gsince the adopt ion of the Kyoto Protocol .

Contribution in customer processes

PFC gases are used in the dry etching process when manufacturing semiconductors and LC Dpanels . However , because PFC gases are greenhouse gases , residual gases (exhaust gases) must betreated af ter use .The global warming potent ial of PFC gases is several thousand or several tens of thousand t ime shigher than that of CO2. Our PFC decomposi t ion systems are used in Japan and around the world,el iminat ing around 9.4 mil l ion tons of exhaust gas in CO2 equivalents annual ly .While there are several different t reatment methods, our products use the fol lowing two method sas wel l as a combinat ion of both .One t reatment method is the dry chemical react ion method which does not require f luorine wast ewater t reatment . We reuse the f luorine component generated during this dry t reatment as synthet i cf luori te (CaF 2 ) . As the system is compact , the necessary number of systems can be instal led atnecessary locat ions. However , the amount of exhaust gas that can be t reated with this method atone t ime is l imited.The other is a catalyt ic decomposi t ion method that can be scaled up and has low running costs .Because the system is large, i t can catalyt ical ly decompose and t reat a large amount of exhaustgas a t one t ime, but requires post- t reatment such as water discharge.We also provide a hybrid-type PFCdecomposi t ion system that combinesthese two methods .There is a lso a combust ion t reatmentmethod. Though this method can t rea trelat ively large-f low, high-densi ty PFCexhaust gases, i t has same defects suchas that this emits some amount of CO 2 because of the use of combust ion gas, and that this marksrelat ively lower decomposing rat io with some types of PFCs.

PFC decomposition systems effectively used in customers plants　

Our Next ChallengeIn the semiconductor and LCD panel industr ies , i t i staken as a given that companies must instal l theseexhaust gas t reatment systems to reduce dischargedgreenhouse gases . Many companies report the reduct ionamounts in their CSR reports .Our mid-sized catalyt ic decomposi t ion system with i t slow running cost is part icular ly highly appreciated .Therefore, we have establ ished technical centers inareas where customers are part icular ly concentrated toestabl ish an environment where customers can alwaysuse the systems without anxiety .We wil l fur ther promote business expansion incountr ies that play main roles in the semiconducto rindustry such as China, Taiwan, Korea and Singapore. We wil l a lso promote local izat ion of no tonly the chemical react ion systems deployed so far but the catalyt ic decomposi t ion systems aswell . We have already completed a prototype in Taiwan. Because environmental affairs ar eglobal scale issues, we wil l fur ther focus on overseas expansion.




Showa Denko creates products giving considerat ion to social issues such as“Reduce, Reuse, and Recycle ,” enabl ing our products to be col lected andrecycled af ter the end of their service l i fe .

What is aluminum can recycling?Aluminum can recycl ing is a recycl ing act ivi ty that has spreadwidely throughout Japan. Not only are the col lected usedaluminum cans used to manufacture new aluminum cans, theyare also reused as car par ts , deoxidat ion mater ia l for s teelmaking and other purposes .Recycl ing aluminum cans leads to energy and resource

conservat ion. By creat ing aluminum ingots f rom aluminum cans, we can save 97% in electr ic i tyand other energies compared with creat ing new aluminum ingots f rom bauxi te , a mater ia l mineralore . The energy saved is a lmost the same as the electr ic i ty consumed by households across Japanin 14 days (according to a survey by the Japan Aluminum Can Recycl ing Associat ion in 2013) .The aluminum can recycl ing rate in Japan for the previous f iscal year was 83.8%. This iss ignif icant ly lower than the year before that because of an increase in exports . When the amountexported is included in calculat ion, 98.4% of a luminum cans are recycled.

Efforts by the Showa Denko GroupEmployees at Showa Aluminum Can K.K. , a Showa Denko Group company, voluntar i ly s tar tedaluminum can recycl ing act ivi t ies in 1971, one year af ter a luminum cans s tar ted to be produced inJapan. Fol lowing this , the Showa Denko Group opened the Showa Aluminum Can Recycl ingCenter Corp. (SCR) in 1995 and establ ished a system to col lect used aluminum cans and convertthem into mater ia l that can be used to make aluminum cans again (Can-to-Can) . Recycl ing byemployees spread across the ent i re Showa Denko Group in 2001. Today, 97% of group employeespart ic ipate in this act ivi ty .Most of cans col lected within the Showa Denko Group are used as mater ia l by Showa AluminumCan K.K. through the SCR. The SCR also contr ibutes to the operat ion of local welfare faci l i t iesand schools by direct ly purchasing aluminum cans from them, donat ing the prof i ts made from thecans col lected by our group employees to local welfare counci ls and faci l i t ies , as wel l asperforming other act ivi t ies .We have posi t ioned the recycl ing of a luminum cans as a “CSR act ivi ty through our business” thatnot only contr ibutes to energy and resource conservat ion but a lso performs as one of sustainablebusiness act ivi t ies of our group.

Practicing recycling of aluminum cans as a business

We received 3R METI Minis ter Award

Our Next ChallengeLast year , the Showa Denko Group received theMinis ter of Economy, Trade and Industry Award fromthe 3R Suishinkyogikai (Reduce, Reuse and RecyclePromotion Counci l ) for the aluminum can recycl ingact ivi t ies we have cont inued for more than 40 years .With the receiving of this award, our ent i re group wil lfur ther promote these act ivi t ies . Although thepart ic ipat ion rate of employees in this act ivi ty hasincreased, the amount col lected has been on a decl inefor the past several years .

We wil l s t imulate theseact ivi t ies and increasethe amount col lected by set t ing a numerical goal for each plantand introducing s tor ies of plants where employees are act ivelyengaged in these act ivi t ies .


Businesses and CSR of the Showa Denko Group

Social Contr ibut ion through Products and Businesses Management Phi losophy and SloganOur Code of Conduct and I ts Pract ical Guide

Social contribution through products and businesses

The vis ion of the Showa Denko Group is to contr ibute to the development of internat ional society byproviding products and services that exceed customer expectat ions.As such, the CSR of our group is to contr ibute to society by providing customers with a var ie ty ofproducts that support our l i fe . Our products and services solve a var ie ty of social issues .On the other hand, i t i s t rue that our group affects the global environment and local communit ies in someaspects in the process of providing useful products and services . We therefore bel ieve that environmentalconservat ion is the major premise of our business act ivi t ies .

Our Vision and Slogan

Our Vision

We at the Showa Denko Group wil l provide products and services that are useful and safe andexceed our customers ' expectat ions, thereby enhancing the value of the Group, giving sat isfact ionto our shareholders , and contr ibut ing to the sound growth of internat ional society as a responsiblecorporate c i t izen.

The Showa Denko Group aims to become “a company contr ibut ing to the sound growth of society” thatcontr ibutes toward creat ing a society where aff luence and sustainabi l i ty are harmonized by providingsocial ly useful products and services .We have establ ished our s logan as a declarat ion to f i rmly “promise” our s takeholders this pol icy.The circumstances and s i tuat ions that surround us are changing great ly . These changes come from globalenvironment , energy, and resource problems, accelerat ing global izat ion, a dramatic expansion of theinformation communicat ion f ie ld associated with digi t izat ion, as wel l as other factors . The Showa DenkoGroup adopted “Shaping Ideas” as a s logan with a s t rong determinat ion to real ize as many wishes anddreams of people as possible in the two business domains, “Energy/Environment” and “Electronics ,”using the power of chemistry. Our Vision　 Our Slogan "Shaping Ideas"

Our Code of Conduct and Its Practical Guide

We establ ished “Our Code of Conduct and I ts Pract ical Guide” to s t ipulate what each employee should doand what value should be provided for each s takeholder to become “a company contr ibut ing to the soundgrowth of society” that our group aims for . Our act ions are based on the fai thful implementat ion of thisCode of Conduct . Our Code of Conduct and I ts Pract ical Guide







Our Vision






CSR Policies of Showa Denko







Our Vision







Our Vision

Our Slogan “Shaping Ideas” Our Code of Conduct and I ts Pract ical Guide

Showa Denko Group, under i ts Vision, has s t r ived to real ize “a company contr ibut ing to the sound growthof society” that contr ibutes toward creat ing a society where aff luence and sustainabi l i ty are harmonized.We have establ ished our s logan as a declarat ion to f i rmly “promise” our s takeholders this pol icy.Also, in order to real ize our Vision and develop the Group sustainably, we have def ined what we shoulddo as the “Our Code of Conduct .”

Our Vision

We at the Showa Denko Group wil l provide products and services that are useful and safe andexceed our customers ' expectat ions, thereby enhancing the value of the Group, giving sat isfact ionto our shareholders , and contr ibut ing to the sound growth of internat ional society as a responsiblecorporate ci t izen.

In order to be t rusted and evaluated by society through the cont inuous improvement of the corporatevalue, i t i s important to maintain and develop appropriate re la t ions with s takeholders such asshareholders , customers , business par tners , local communit ies and employees. We clar i fy this as "OurVision" and promote the management for i ts real izat ion.

Our Code of Conduct

1. We wil l act with integrity as a responsible c i t izen of the international society.

2. We wil l provide our customers with satisfaction and safety.

3. We wil l develop corporate culture that helps every member of the Group to ful ly displayhis/her abi l i ty .

4 . We wil l meet the expectations of local communities .

5 . We wil l make vigorous efforts to maintain and improve the global environment.

In January 2012, as a revised version of the above, we establ ished “Our Code of Conduct and I ts Pract icalGuide” based on the social t rends and the changes in our Group.We referred to ISO26000 in order to examine the contents , and summarized the contents based on whatvalue should be provided to each s takeholder .The booklet dis t r ibuted to the Group employees contains “Commentar ies”, “Relevant laws andregulat ions, and internal rules” and “Points for discussion” for each i tem, which is intended to be used asa tool to “understand, discuss and put into pract ice”.

Our Slogan “Shaping Ideas”


We wil l act in s t r ic t compliance with laws and regulat ions and according to high ethicals tandards.

1)

We wil l promote Responsible Care programs.2)We wil l conduct business based on the pr inciple of fair and free competi t ion.3)We wil l respect human r ights .4)We wil l work to prevent br ibery and other forms of corrupt ion.5)

We wil l develop and provide “individual ized” products , technologies , and services that sat isfyour customers and promote the sound growth of internat ional society.

1)

We wil l ensure s table supply of products that meet customers ' expectat ions, in cooperat ion withour business par tners .

2)

We wil l create new values based on mutual respect for personal i ty , f ree thinking, andconstruct ive discussions.

1)

We wil l give the highest pr ior i ty to safety, and s t r ive to maintain and improve the workingenvironment .

2)

We wil l disclose accurate information on our act ivi t ies in a t imely manner to the countr ies andlocal communit ies in which we operate , so as to maintain good communicat ion and promotemutual understanding.

1)

We wil l grow with the countr ies and local communit ies in which we operate , and contr ibute totheir social and economic growth.

2)

We wil l reduce environmental impact of our business act ivi t ies , and contr ibute toward themit igat ion of c l imate change and the conservat ion of biological diversi ty .

1)

We wil l develop and provide environment-fr iendly products and technologies .2)

Our Vision



Our Vision



Our Code of Conduct










1)



1)


2)


1)


2)


1)


2)


1)



Our Vision



Our Vision



Our Code of Conduct










1)



1)


2)


1)


2)


1)


2)


1)



CSR Policy, Plan, and Promotion Framework

CSR Policy Stakeholders around the Showa Denko Group CSR Promotion Framework

CSR Plans and Achievements for 2013

The vision of the Showa Denko Group is to contribute to the development of international society through

provision of products and services. To realize this vision, we have established a CSR policy that will “contribute

toward creating a society where affluence and sustainability are harmonized” in our medium term consolidated

business plan PEGASUS (2011 to 2015), which we are currently promoting. What is required today is the growth

that realizes both “health and safety” and “convenience and comfort” as well as giving consideration to

“sustainability” of resources, the environment and other factors. We conduct business in such a way that our

products and technologies help solve these social issues.

We have also established “Our Code of Conduct and Its Practical Guide” to instill our group vision into actions of

every employee in our group. Particularly during the PEGASUS period, we will engage in activities that aim for

“CSR that take root in the mind of each employee,” focusing on “corporate ethics and compliance,” “risk

management,” and “stakeholder engagement” on the basis of ISO26000 social responsibility guidelines.

The Showa Denko Group wants to be a company that fulfills our social responsibilities for all stakeholders and a

company that is trusted and appreciated by them. We will clarify our responsibilities for all stakeholders,

understand their expectations and issues regarding our group through communication, and reflect the results in our

corporate activities.

List of stakeholder communications

Basic conceptCommunication

tool

Communication

opportunity

Customers

We strive to ensure

satisfaction with Group

products and services,

thereby securing our

customers' patronage.

・Website

・News releases

・CSR reports

・Product

brochures

・SDS

・Advertisements

・Company

brochure

・Sales

activities

・Trade shows

・Service

center

・Plant tours

and other

opportunities

Shareholders

and

investors

We strive to ensure


performance and continued

shareholding.

・Website

・News releases

・Financial

results (summary)

・Financial

statements

・Financial

results

presentation

materials

・Company

brochure

・CSR reports

・Annual reports

・Reports to

shareholders

・Financial

results and

business

briefings

・Shareholders’

meetings

・Plant tours

・Online

conferences

・Seminars

・Other IR

activities and

other

opportunities

Business

partners

We strive to maintain

mutually beneficial

relationships based on trust

in transactions with the

Group.

・Website

・News releases

・CSR reports

・Company

brochure

・Purchasing

activities

・CSR visits

・Self-

evaluation and

other

opportunities

Local

communities

and

authorities

We strive to ensure that

local communities and

authorities have confidence

in the safety and stability of

our operations.

・Website

・Press releases

・CSR reports

・CSR site

reports

・Plant

newsletters

・Plant tours

・RC

community

dialogues

・Environmental

monitoring

・Experiment

classes and

other

opportunities

Employees

and their

families

We strive to provide

rewarding worksites in

which employees and their

families can take pride.

・Group news

(paper and web)

・CSR reports

・Portal site on

the intranet

・MBO

(management

by objective)

・Labor-

management

consultations

・Family tours

Our group has established the CSR Committee composed of the members of the Management Council, which serves

as a framework to associate business measures with CSR. Under the CSR Committee, we established the

Responsible Care Promotion Council, Risk Management Promotion Council, Human Rights/Corporate Ethics

Promotion Council, and the IR Promotion Council. These councils plan and propose individual topics related to

CSR as well as discuss matters to be presented to the CSR Committee.

In addition, the Group has a framework where the CSR Department, Environment & Safety Office of CSR

Department, Quality Assurance Office of CSR Department, General Affairs & Human Resources Department, and

the Public Relations Office of General Affairs & Human Resources Department assist each business division and

workplace perform various CSR activities such as those for human rights, corporate ethics and compliance, risk

management, Responsible Care and other matters as staff departments. The CSR Department functions as the

secretariat of the CSR Committee, plans and summarizes basic policies and comprehensive measures regarding

CSR. The department also collects CSR related information and supervises risk management in our group. We have

established the Environment & Safety Office and the Quality Assurance Office under the CSR Department in order

to promote Responsible Care activities such as those for the environment, safety, and quality assurance. The

General Affairs & Human Resources Department is responsible for human rights, corporate ethics and compliance,

while the Public Relations Office in the General Affairs & Human Resources Department is responsible for CSR

communications and is engaged in proposing and implementing individual policies and measures.

◎: Fully achieved (100%): Achieved 80% or more

△: Achieved less than 80%

Plans for 2013 Achievements in 2013Evalua

tionPlans for 2014

Human rights

Ensuring

promotion of

Human rights

enlightenment

activity

Enhancement of human

rights education (training for

0.95 hour/employee,

improvement in areas where

training time was short in the

previous year, participation

of six new affiliated

companies in the effort)

Ensuring promotion

of Human rights

enlightenment

activity

Further expansion

of human rights

education

Provision of

training tools and

sharing of

educational

packages

Increased variation

in educational

contents

Corporate

ethics and

compliance

Disseminating

“Our Code of

Conduct and Its

Practical Guide”

continuously

Promoted the creation of

tools in overseas subsidiaries

(Chinese version completed)

Establishment of

compliance and

corporate ethics

Discussions in each

office using "Our

Code of Conduct

and Its Practical

Guide"

Implementation of

employee

attitude surveys

and examination of

issues and

measures

Support for putting

"Our Code of

Conduct and Its

Practical Guide"

into practice in

overseas

subsidiaries

Held discussion in each

office as a “Corporate Ethics

Month” activity

Implemented education and

training for new employees

Enhancement of

consultation about

internal reporting

(Corporate Ethics

Hotline)

Established hotlines at four

overseas group companies in

China and other countries◎

Expanding the

coverage of the

internal reporting

system (Corporate

Ethics Hotline)

Support for improving the

skills of persons in charge of

consultation

Risk

management

Executing risk

inventory

continuously

Executed risk inventory ◎Executing risk

inventory

continuously

Continuation of

earthquake

resistance

measures

Formulating

quakeproof

investment plan

for 2014 to 2015

Reviewed and implemented

of earthquake resistance

measures

Compled the earthquake

resistance plan for 2014 -

2015

◎

Continuation of

earthquake

resistance measures

Review of the

earthquake

resistance measures

plan for 2015

Tackling

important common

risks

Tackled earthquake risks,

information security

risks, generalaffairs risks

and others

◎Continuously

tackling important

common risks

Labor practices

Expanding

activity scope,

promoting

energetic

activities of

women but also of

a variety of

human resources

(Diversity

promotion

project)

Maintained the employment

rates of handicapped people

higher than the legal rate

(Showa Denko K.K.: 2.30%,

Showa Denko Group:

2.19%).

Accepted intellectually or

mentally handicapped people

as interns.

◎

Promotion of

diversity

Setting of a target

number (ratio) of

female managers as

well as promoting

employment

and training of

female

employees to

achieve this target

Employment of

foreign employees

Environment

improvements in

order to accept

intellectually or

mentally

handicapped people

Support for

affiliated

companies that

have failed to

reach the

legal employment

rate of

handicapped people

Increased the percentage of

female employees (9.6% for

Showa Denko K.K. domestic

(+3.4% compared with that

in 2007) and 10.3%

consolidated domestically


in 2007 (as of the end of

2013))

Increased the number of

female managers (15 for


as of the end of 2013 (7 as of

the end of 2007))

◎

Continued hiring of new

foreign employees◎

Fair business

practice and

customer care

Expanding the

target scope of

CSR procurement

Expanded CSR procurement

activities to domestic group

companies (self-evaluation

performed by the business

partners of four group

companies)

Continued self-evaluation

and CSR visits

◎

Expanding the target

scope of CSR

procurement

Self-evaluations

and CSR visits

targeting the

partners of group

companies

Information

disclosure and

IR

Promoting IR

Held a variety of seminars,

individual briefing sessions

and other events in Japan and

abroad ◎ Promoting IR

Timely information

disclosure through the

website

Local

community and

social

contribution

Contribution to

local communities

using internal

resources

Implemented Classes-on-

demand, environmental

education, plant tours, intern

acceptance and other

activities at each plant

◎

Contribution to local

communities usinginternal resources

・Promotion of

next-generation

development and

contribution

activities

Responsible

Care activities

Ensuring

implementation of

RC action plan

Promoted RC activities based

on the plan

Ensuring

implementation of

RC action plan

CSR policy

Stakeholders around the Showa Denko Group

CSR promotion framework

CSR plans and achievements for 2013





















tool

Communication

opportunity

Customers

We strive to ensure





・Website

・News releases

・CSR reports

・Product

brochures

・SDS

・Advertisements

・Company

brochure

・Sales

activities

・Trade shows

・Service

center

・Plant tours

and other

opportunities

Shareholders

and

investors

We strive to ensure



shareholding.

・Website

・News releases

・Financial

results (summary)

・Financial

statements

・Financial

results

presentation

materials

・Company

brochure

・CSR reports

・Annual reports

・Reports to

shareholders

・Financial

results and

business

briefings

・Shareholders’

meetings

・Plant tours

・Online

conferences

・Seminars

・Other IR

activities and

other

opportunities

Business

partners


mutually beneficial



Group.

・Website

・News releases

・CSR reports

・Company

brochure

・Purchasing

activities

・CSR visits

・Self-

evaluation and

other

opportunities

Local

communities

and

authorities





our operations.

・Website

・Press releases

・CSR reports

・CSR site

reports

・Plant

newsletters

・Plant tours

・RC

community

dialogues

・Environmental

monitoring

・Experiment

classes and

other

opportunities

Employees

and their

families





・Group news

(paper and web)

・CSR reports

・Portal site on

the intranet

・MBO

(management

by objective)

・Labor-

management

consultations

・Family tours





















tionPlans for 2014

Human rights

Ensuring

promotion of

Human rights

enlightenment

activity



0.95 hour/employee,






Ensuring promotion

of Human rights

enlightenment

activity

Further expansion

of human rights

education

Provision of

training tools and

sharing of

educational

packages

Increased variation

in educational

contents

Corporate

ethics and

compliance

Disseminating

“Our Code of

Conduct and Its

Practical Guide”

continuously




Establishment of

compliance and

corporate ethics

Discussions in each

office using "Our

Code of Conduct

and Its Practical

Guide"

Implementation of

employee

attitude surveys

and examination of

issues and

measures

Support for putting

"Our Code of

Conduct and Its

Practical Guide"

into practice in

overseas

subsidiaries



Month” activity



Enhancement of

consultation about

internal reporting

(Corporate Ethics

Hotline)




Expanding the

coverage of the

internal reporting

system (Corporate

Ethics Hotline)



consultation

Risk

management

Executing risk

inventory

continuously


inventory

continuously

Continuation of

earthquake

resistance

measures

Formulating

quakeproof

investment plan

for 2014 to 2015



measures



2015

◎

Continuation of

earthquake

resistance measures

Review of the

earthquake

resistance measures

plan for 2015

Tackling

important common

risks




and others

◎Continuously

tackling important

common risks

Labor practices

Expanding

activity scope,

promoting

energetic

activities of

women but also of

a variety of

human resources

(Diversity

promotion

project)





Showa Denko Group:

2.19%).



as interns.

◎

Promotion of

diversity

Setting of a target

number (ratio) of

female managers as

well as promoting

employment

and training of

female

employees to

achieve this target

Employment of

foreign employees

Environment

improvements in

order to accept

intellectually or

mentally

handicapped people

Support for

affiliated

companies that

have failed to

reach the

legal employment

rate of

handicapped people





in 2007) and 10.3%




2013))





the end of 2007))

◎



Fair business

practice and

customer care

Expanding the

target scope of

CSR procurement






companies)


and CSR visits

◎


scope of CSR

procurement

Self-evaluations

and CSR visits

targeting the

partners of group

companies

Information

disclosure and

IR

Promoting IR





Timely information


website

Local

community and

social

contribution

Contribution to

local communities

using internal

resources






◎



・Promotion of

next-generation

development and

contribution

activities

Responsible

Care activities

Ensuring

implementation of

RC action plan


on the plan

Ensuring

implementation of

RC action plan

CSR policy

























tool

Communication

opportunity

Customers

We strive to ensure





・Website

・News releases

・CSR reports

・Product

brochures

・SDS

・Advertisements

・Company

brochure

・Sales

activities

・Trade shows

・Service

center

・Plant tours

and other

opportunities

Shareholders

and

investors

We strive to ensure



shareholding.

・Website

・News releases

・Financial

results (summary)

・Financial

statements

・Financial

results

presentation

materials

・Company

brochure

・CSR reports

・Annual reports

・Reports to

shareholders

・Financial

results and

business

briefings

・Shareholders’

meetings

・Plant tours

・Online

conferences

・Seminars

・Other IR

activities and

other

opportunities

Business

partners


mutually beneficial



Group.

・Website

・News releases

・CSR reports

・Company

brochure

・Purchasing

activities

・CSR visits

・Self-

evaluation and

other

opportunities

Local

communities

and

authorities





our operations.

・Website

・Press releases

・CSR reports

・CSR site

reports

・Plant

newsletters

・Plant tours

・RC

community

dialogues

・Environmental

monitoring

・Experiment

classes and

other

opportunities

Employees

and their

families





・Group news

(paper and web)

・CSR reports

・Portal site on

the intranet

・MBO

(management

by objective)

・Labor-

management

consultations

・Family tours





















tionPlans for 2014

Human rights

Ensuring

promotion of

Human rights

enlightenment

activity



0.95 hour/employee,






Ensuring promotion

of Human rights

enlightenment

activity

Further expansion

of human rights

education

Provision of

training tools and

sharing of

educational

packages

Increased variation

in educational

contents

Corporate

ethics and

compliance

Disseminating

“Our Code of

Conduct and Its

Practical Guide”

continuously




Establishment of

compliance and

corporate ethics

Discussions in each

office using "Our

Code of Conduct

and Its Practical

Guide"

Implementation of

employee

attitude surveys

and examination of

issues and

measures

Support for putting

"Our Code of

Conduct and Its

Practical Guide"

into practice in

overseas

subsidiaries



Month” activity



Enhancement of

consultation about

internal reporting

(Corporate Ethics

Hotline)




Expanding the

coverage of the

internal reporting

system (Corporate

Ethics Hotline)



consultation

Risk

management

Executing risk

inventory

continuously


inventory

continuously

Continuation of

earthquake

resistance

measures

Formulating

quakeproof

investment plan

for 2014 to 2015



measures



2015

◎

Continuation of

earthquake

resistance measures

Review of the

earthquake

resistance measures

plan for 2015

Tackling

important common

risks




and others

◎Continuously

tackling important

common risks

Labor practices

Expanding

activity scope,

promoting

energetic

activities of

women but also of

a variety of

human resources

(Diversity

promotion

project)





Showa Denko Group:

2.19%).



as interns.

◎

Promotion of

diversity

Setting of a target

number (ratio) of

female managers as

well as promoting

employment

and training of

female

employees to

achieve this target

Employment of

foreign employees

Environment

improvements in

order to accept

intellectually or

mentally

handicapped people

Support for

affiliated

companies that

have failed to

reach the

legal employment

rate of

handicapped people





in 2007) and 10.3%




2013))





the end of 2007))

◎



Fair business

practice and

customer care

Expanding the

target scope of

CSR procurement






companies)


and CSR visits

◎


scope of CSR

procurement

Self-evaluations

and CSR visits

targeting the

partners of group

companies

Information

disclosure and

IR

Promoting IR





Timely information


website

Local

community and

social

contribution

Contribution to

local communities

using internal

resources






◎



・Promotion of

next-generation

development and

contribution

activities

Responsible

Care activities

Ensuring

implementation of

RC action plan


on the plan

Ensuring

implementation of

RC action plan

CSR policy




CSR Policy, Plan, and Promotion Framework | Social and Environmental Measures | SHOWA DENKO K.K.

http://www.sdk.co.jp/english/csr/stance/principle.html[14/09/08 15:27:25]

English Top Social and Environmental Measures CSR Policies of Showa Denko CSR Policy, Plan, and PromotionFramework


CSR Policy Stakeholders around the Showa Denko Group CSR Promotion FrameworkCSR Plans and Achievements for 2013

The vision of the Showa Denko Group is to contribute to the development of internationalsociety through provision of products and services. To realize this vision, we have establisheda CSR policy that will “contribute toward creating a society where affluence and sustainabilityare harmonized” in our medium term consolidated business plan PEGASUS (2011 to 2015),which we are currently promoting. What is required today is the growth that realizes both“health and safety” and “convenience and comfort” as well as giving consideration to“sustainability” of resources, the environment and other factors. We conduct business in sucha way that our products and technologies help solve these social issues.We have also established “Our Code of Conduct and Its Practical Guide” to instill our groupvision into actions of every employee in our group. Particularly during the PEGASUS period, wewill engage in activities that aim for “CSR that take root in the mind of each employee,”focusing on “corporate ethics and compliance,” “risk management,” and “stakeholderengagement” on the basis of ISO26000 social responsibility guidelines.

The Showa Denko Group wants to be a company that fulfills our social responsibilities for allstakeholders and a company that is trusted and appreciated by them. We will clarify ourresponsibilities for all stakeholders, understand their expectations and issues regarding ourgroup through communication, and reflect the results in our corporate activities.

■ List of stakeholder communications

Basic concept Communication tool Communication opportunity

Customers

Shareholdersandinvestors

Businesspartners

Localcommunitiesandauthorities

Employeesand theirfamilies

Our group has established the CSR Committee composed of the members of the ManagementCouncil, which serves as a framework to associate business measures with CSR. Under the CSRCommittee, we established the Responsible Care Promotion Council, Risk ManagementPromotion Council, Human Rights/Corporate Ethics Promotion Council, and the IR PromotionCouncil. These councils plan and propose individual topics related to CSR as well as discussmatters to be presented to the CSR Committee.In addition, the Group has a framework where the CSR Department, Environment & SafetyOffice of CSR Department, Quality Assurance Office of CSR Department, General Affairs &Human Resources Department, and the Public Relations Office of General Affairs & HumanResources Department assist each business division and workplace perform various CSRactivities such as those for human rights, corporate ethics and compliance, risk management,Responsible Care and other matters as staff departments. The CSR Department functions asthe secretariat of the CSR Committee, plans and summarizes basic policies and comprehensivemeasures regarding CSR. The department also collects CSR related information and supervisesrisk management in our group. We have established the Environment & Safety Office and theQuality Assurance Office under the CSR Department in order to promote Responsible Careactivities such as those for the environment, safety, and quality assurance. The GeneralAffairs & Human Resources Department is responsible for human rights, corporate ethics andcompliance, while the Public Relations Office in the General Affairs & Human ResourcesDepartment is responsible for CSR communications and is engaged in proposing andimplementing individual policies and measures.

◎: Fully achieved (100%)○: Achieved 80% or more△: Achieved less than 80%

Plans for 2013Achievements in2013

Evaluation

Plans for 2014

Human rights

Ensuringpromotion ofHuman rightsenlightenmentactivity

Enhancement ofhuman rightseducation (trainingfor 0.95hour/employee,improvement inareas where trainingtime was short inthe previous year,participation of sixnew affiliatedcompanies in theeffort)

○

Ensuring promotionof Human rightsenlightenmentactivity

Further expansionof human rightseducationProvision oftraining tools andsharing ofeducationalpackagesIncreased variationin educationalcontents

Corporateethics andcompliance

Disseminating“Our Code ofConduct andIts PracticalGuide”continuously

Promoted thecreation of tools inoverseassubsidiaries(Chinese versioncompleted)

○

Establishment ofcompliance andcorporate ethics

Discussions in eachoffice using "OurCode of Conductand Its PracticalGuide"Implementation ofemployeeattitude surveysand examination ofissues andmeasuresSupport for putting"Our Code ofConduct and ItsPractical Guide"into practice inoverseassubsidiaries

Held discussion ineach office as a“Corporate EthicsMonth” activity

Implementededucation andtraining for newemployees

Enhancementof consultationabout internalreporting(CorporateEthics Hotline)

Established hotlinesat four overseasgroup companies inChina and othercountries ◎

Expanding thecoverage of theinternal reportingsystem (CorporateEthics Hotline)

Support forimproving the skillsof persons in chargeof consultation

Riskmanagement

Executing riskinventorycontinuously

Executed riskinventory

◎Executing riskinventorycontinuously

Continuationof earthquakeresistancemeasures

Formulatingquakeproofinvestmentplan for 2014to 2015

Reviewed andimplemented ofearthquakeresistance measures

Compledthe earthquakeresistance plan for2014 - 2015

◎

Continuation ofearthquakeresistance measuresReview of theearthquakeresistance measuresplan for 2015

Tacklingimportantcommon risks

Tackled earthquakerisks, informationsecurityrisks, generalaffairsrisks and others

◎Continuouslytackling importantcommon risks

Laborpractices

Expandingactivity scope,promotingenergeticactivities ofwomen butalso of avariety ofhumanresources(Diversitypromotionproject)

Maintained theemployment rates ofhandicapped peoplehigher than thelegal rate (ShowaDenko K.K.: 2.30%,Showa Denko Group:2.19%).Acceptedintellectually ormentallyhandicapped peopleas interns.

◎Promotion ofdiversity

Setting of a targetnumber (ratio) offemale managers aswell as promotingemploymentand training offemaleemployees toachieve this targetEmployment offoreign employeesEnvironmentimprovements inorder to acceptintellectually ormentallyhandicapped peopleSupport foraffiliatedcompanies thathave failed to reachthelegal employmentrate ofhandicapped people

Increased thepercentage offemale employees(9.6% for ShowaDenko K.K.domestic (+3.4%compared with thatin 2007) and 10.3%consolidateddomestically (+0.6%compared with thatin 2007 (as of theend of 2013))Increased thenumber of femalemanagers (15 forShowa Denko K.K.domestic as of theend of 2013 (7 as ofthe end of 2007))

◎

Continued hiring ofnew foreignemployees

◎

Fair businesspractice andcustomercare

Expanding thetarget scope ofCSRprocurement

Expanded CSRprocurementactivities todomestic groupcompanies (self-evaluationperformed by thebusiness partners offour groupcompanies)Continued self-evaluation and CSRvisits

◎

Expanding the targetscope of CSRprocurement

Self -evaluationsand CSR visitstargeting thepartners of groupcompanies

Informationdisclosureand IR

Promoting IR

Held a variety ofseminars, individualbriefing sessionsand other events inJapan and abroad ◎ Promoting IR

Timely informationdisclosure throughthe website

Localcommunityand socialcontribution

Contribution tolocalcommunitiesusing internalresources

ImplementedClasses-on-demand,environmentaleducation, planttours, internacceptance andother activities ateach plant

◎

Contribution to localcommunities usinginternal resources・Promotion of next-generationdevelopment andcontributionactivities

ResponsibleCareactivities

Ensuringimplementationof RC actionplan

Promoted RCactivities based onthe plan

○Ensuringimplementation ofRC action plan

Message from CEO

Special FeaturePEGASUS Phase Ⅱ

CSR Policies of ShowaDenko

Businesses andCSR of theShowa DenkoGroup

Groupmanagement

CSR Policy,Plan, andPromotionFramework

Corporate Governance

Human Rights

Corporate Ethics andCompliance

Risk Management

Labor Practices

Fair Business Practiceand Customer Care

Information Disclosureand IR

Local Community andSocial Contribution

Responsible CareActivity

Performance datacollection

List of data collectionboundaries

Editorial policies/Report Scope

Third-partyVerification

List of Declarationsand Certifications

Library

Great East JapanEarthquake- related

CSR policy


CSR promotion Framework


AboutTopMessageOur VisionMedium-TermBusiness PlanProfileLocationsProcurment

BusinessSectorsPetrochemicalsIndustrial GasesBasic ChemicalsElectronicChemicalsFunctionalChemicalsCeramicsCarbonsAluminum RolledProductsAluminumSpecialtyComponentsAluminum CanHDElectronicsMaterialsAdvanced BatteryMaterialsDepartment

InvestorRelationsFinancial DataIR LibraryIR CalendarStock PriceChart

Social andEnvironmentalMeasuresMessage from CEOSpecial FeaturePEGASAUS Phase ⅡLabor PracticesHuman RightsCorporate Ethicsand ComplianceResponsible CareActivityPerformance datacollectionList ofDeclarations andCertificationsPast ReportsEditorial policies/Report Scope

R&D MeasuresBasic R&D PolicyR&D ExpensesIdea Shaping LABShowa DenkoGroup'sTechnologicalLineage

ProductsSearch by CategorySearch by BusinessUnitsSearch by ProductName

Sitemap Links Terms of Use Privacy Policy

We strive to ensure satisfactionwith Group products andservices, thereby securing ourcustomers' patronage.

We strive to ensure satisfactionwith Group performance andcontinued shareholding.

We strive to maintain mutuallybeneficial relationships based ontrust in transactions with theGroup.

We strive to ensure that localcommunities and authorities haveconfidence in the safety andstability of our operations.

We strive to provide rewardingworksites in which employeesand their families can take pride.

・Website・News releases・CSR reports・Product brochures・SDS・Advertisements・Company brochure

・Website・News releases・Financial results

(summary)・Financial statements・Financial results

presentation materials・Company brochure・CSR reports・Annual reports・Reports to shareholders

・Website・News releases・CSR reports・Company brochure

・Website・Press releases・CSR reports・CSR site reports・Plant newsletters

・Group news (paper and web)

・CSR reports・Portal site on the intranet

・Sales activities・Trade shows・Service center・Plant tours and other opportunities

・Financial results and business briefings

・Shareholders’ meetings・Plant tours・Online conferences・Seminars・Other IR activities and other opportunities

・Purchasing activities・CSR visits・Selfevaluation and other opportunities

・Plant tours・RC community dialogues・Environmental monitoring・Experiment classes and other opportunities

・MBO (management by objective)

・Labormanagement consultations

・Family tours






















tool

Communication

opportunity

Customers

We strive to ensure





・Website

・News releases

・CSR reports

・Product

brochures

・SDS

・Advertisements

・Company

brochure

・Sales

activities

・Trade shows

・Service

center

・Plant tours

and other

opportunities

Shareholders

and

investors

We strive to ensure



shareholding.

・Website

・News releases

・Financial

results (summary)

・Financial

statements

・Financial

results

presentation

materials

・Company

brochure

・CSR reports

・Annual reports

・Reports to

shareholders

・Financial

results and

business

briefings

・Shareholders’

meetings

・Plant tours

・Online

conferences

・Seminars

・Other IR

activities and

other

opportunities

Business

partners


mutually beneficial



Group.

・Website

・News releases

・CSR reports

・Company

brochure

・Purchasing

activities

・CSR visits

・Self-

evaluation and

other

opportunities

Local

communities

and

authorities





our operations.

・Website

・Press releases

・CSR reports

・CSR site

reports

・Plant

newsletters

・Plant tours

・RC

community

dialogues

・Environmental

monitoring

・Experiment

classes and

other

opportunities

Employees

and their

families





・Group news

(paper and web)

・CSR reports

・Portal site on

the intranet

・MBO

(management

by objective)

・Labor-

management

consultations

・Family tours





















tionPlans for 2014

Human rights

Ensuring

promotion of

Human rights

enlightenment

activity



0.95 hour/employee,






Ensuring promotion

of Human rights

enlightenment

activity

Further expansion

of human rights

education

Provision of

training tools and

sharing of

educational

packages

Increased variation

in educational

contents

Corporate

ethics and

compliance

Disseminating

“Our Code of

Conduct and Its

Practical Guide”

continuously




Establishment of

compliance and

corporate ethics

Discussions in each

office using "Our

Code of Conduct

and Its Practical

Guide"

Implementation of

employee

attitude surveys

and examination of

issues and

measures

Support for putting

"Our Code of

Conduct and Its

Practical Guide"

into practice in

overseas

subsidiaries



Month” activity



Enhancement of

consultation about

internal reporting

(Corporate Ethics

Hotline)




Expanding the

coverage of the

internal reporting

system (Corporate

Ethics Hotline)



consultation

Risk

management

Executing risk

inventory

continuously


inventory

continuously

Continuation of

earthquake

resistance

measures

Formulating

quakeproof

investment plan

for 2014 to 2015



measures



2015

◎

Continuation of

earthquake

resistance measures

Review of the

earthquake

resistance measures

plan for 2015

Tackling

important common

risks




and others

◎Continuously

tackling important

common risks

Labor practices

Expanding

activity scope,

promoting

energetic

activities of

women but also of

a variety of

human resources

(Diversity

promotion

project)





Showa Denko Group:

2.19%).



as interns.

◎

Promotion of

diversity

Setting of a target

number (ratio) of

female managers as

well as promoting

employment

and training of

female

employees to

achieve this target

Employment of

foreign employees

Environment

improvements in

order to accept

intellectually or

mentally

handicapped people

Support for

affiliated

companies that

have failed to

reach the

legal employment

rate of

handicapped people





in 2007) and 10.3%




2013))





the end of 2007))

◎



Fair business

practice and

customer care

Expanding the

target scope of

CSR procurement






companies)


and CSR visits

◎


scope of CSR

procurement

Self-evaluations

and CSR visits

targeting the

partners of group

companies

Information

disclosure and

IR

Promoting IR





Timely information


website

Local

community and

social

contribution

Contribution to

local communities

using internal

resources






◎



・Promotion of

next-generation

development and

contribution

activities

Responsible

Care activities

Ensuring

implementation of

RC action plan


on the plan

Ensuring

implementation of

RC action plan

CSR policy

























tool

Communication

opportunity

Customers

We strive to ensure





・Website

・News releases

・CSR reports

・Product

brochures

・SDS

・Advertisements

・Company

brochure

・Sales

activities

・Trade shows

・Service

center

・Plant tours

and other

opportunities

Shareholders

and

investors

We strive to ensure



shareholding.

・Website

・News releases

・Financial

results (summary)

・Financial

statements

・Financial

results

presentation

materials

・Company

brochure

・CSR reports

・Annual reports

・Reports to

shareholders

・Financial

results and

business

briefings

・Shareholders’

meetings

・Plant tours

・Online

conferences

・Seminars

・Other IR

activities and

other

opportunities

Business

partners


mutually beneficial



Group.

・Website

・News releases

・CSR reports

・Company

brochure

・Purchasing

activities

・CSR visits

・Self-

evaluation and

other

opportunities

Local

communities

and

authorities





our operations.

・Website

・Press releases

・CSR reports

・CSR site

reports

・Plant

newsletters

・Plant tours

・RC

community

dialogues

・Environmental

monitoring

・Experiment

classes and

other

opportunities

Employees

and their

families





・Group news

(paper and web)

・CSR reports

・Portal site on

the intranet

・MBO

(management

by objective)

・Labor-

management

consultations

・Family tours





















tionPlans for 2014

Human rights

Ensuring

promotion of

Human rights

enlightenment

activity



0.95 hour/employee,






Ensuring promotion

of Human rights

enlightenment

activity

Further expansion

of human rights

education

Provision of

training tools and

sharing of

educational

packages

Increased variation

in educational

contents

Corporate

ethics and

compliance

Disseminating

“Our Code of

Conduct and Its

Practical Guide”

continuously




Establishment of

compliance and

corporate ethics

Discussions in each

office using "Our

Code of Conduct

and Its Practical

Guide"

Implementation of

employee

attitude surveys

and examination of

issues and

measures

Support for putting

"Our Code of

Conduct and Its

Practical Guide"

into practice in

overseas

subsidiaries



Month” activity



Enhancement of

consultation about

internal reporting

(Corporate Ethics

Hotline)




Expanding the

coverage of the

internal reporting

system (Corporate

Ethics Hotline)



consultation

Risk

management

Executing risk

inventory

continuously


inventory

continuously

Continuation of

earthquake

resistance

measures

Formulating

quakeproof

investment plan

for 2014 to 2015



measures



2015

◎

Continuation of

earthquake

resistance measures

Review of the

earthquake

resistance measures

plan for 2015

Tackling

important common

risks




and others

◎Continuously

tackling important

common risks

Labor practices

Expanding

activity scope,

promoting

energetic

activities of

women but also of

a variety of

human resources

(Diversity

promotion

project)





Showa Denko Group:

2.19%).



as interns.

◎

Promotion of

diversity

Setting of a target

number (ratio) of

female managers as

well as promoting

employment

and training of

female

employees to

achieve this target

Employment of

foreign employees

Environment

improvements in

order to accept

intellectually or

mentally

handicapped people

Support for

affiliated

companies that

have failed to

reach the

legal employment

rate of

handicapped people





in 2007) and 10.3%




2013))





the end of 2007))

◎



Fair business

practice and

customer care

Expanding the

target scope of

CSR procurement






companies)


and CSR visits

◎


scope of CSR

procurement

Self-evaluations

and CSR visits

targeting the

partners of group

companies

Information

disclosure and

IR

Promoting IR





Timely information


website

Local

community and

social

contribution

Contribution to

local communities

using internal

resources






◎



・Promotion of

next-generation

development and

contribution

activities

Responsible

Care activities

Ensuring

implementation of

RC action plan


on the plan

Ensuring

implementation of

RC action plan

CSR policy













Customers


Businesspartners






Evaluation

Plans for 2014

Human rights



○






○









Riskmanagement








◎





Laborpractices






◎


◎




◎




Promoting IR






◎






Message from CEO




Groupmanagement



Human Rights


Risk Management

Labor Practices










Library


CSR policy































・Family tours











Customers


Businesspartners






Evaluation

Plans for 2014

Human rights



○






○









Riskmanagement








◎





Laborpractices






◎


◎




◎




Promoting IR






◎






Message from CEO




Groupmanagement



Human Rights


Risk Management

Labor Practices










Library


CSR policy































・Family tours










Customers


Businesspartners






Evaluation

Plans for 2014

Human rights



○






○









Riskmanagement








◎





Laborpractices






◎


◎




◎




Promoting IR






◎






Message from CEO




Groupmanagement



Human Rights


Risk Management

Labor Practices










Library


CSR policy































・Family tours


(As of March 2014)


Implementation status of corporate governance measuresBoard of Directors Management Committee and R&D CommitteeCSR Committee Board of Auditors Internal Audit DepartmentAccounting auditsOverview of Governing Bodies/Committees/CouncilsRemuneration, etc., to Directors and Auditors, and how it is determined

Showa Denko will continue to enhance corporate governance, focusing on the following points of view, inorder to ensure sound, effective and transparent management, as well as to achieve continuous improvement inour corporate value.

Strengthening complianceStrengthening management monitoring and supervisory functionsClarifying management responsibilitiesRapid, effective decision-making and business executionStrengthening the information disclosure system

■ Corporate governance structure

To clearly separate management supervision functions from business execution functions, we have introducedthe corporate officer system. The top management team, consisting of the President and corporate officers incharge of respective operations, is working to increase the speed of decision making and vitalize operations. Inaddition, we have strengthened the supervision functions of the Board of Directors by appointing two outsidedirectors.

The Board of Directors decides the Company's basic policies. It also deliberates and decides on mattersprovided for in the Companies Act and the Company's Articles of Incorporation as well as important mattersfor the execution of the Company's operations. We appoint directors with emphasis on the viewpoint ofcorporate governance, aiming to strengthen the Board of Directors' monitoring and supervisory functions andensure the propriety of decision making process. We have adopted a management system in which corporateofficers dedicate themselves to business execution, which is their primary duty, but do not concurrently serveas directors, in principle. Furthermore, we have abolished the system of officer directors except the Chairmanand the President, while strengthening monitoring by Auditors including outside Auditors and mutualsupervision among directors.The term of office of directors is set to one year to ensure a quick and flexible formation of management teamcorresponding to changes in the business environment.

Management Team

The Management Committee, which is chaired by the President, deliberates and decides on matters to bereferred to the Board of Directors' meetings and important matters pertaining to overall management of theCompany. The decisions are made after deliberations on two occasions. As for investment plans, their risks areexamined by task teams before referral to the Management Committee, and their progress is monitored afterauthorization. The basic business policies including Company's medium-term business plans are decided notonly through the deliberation of the Management Committee but also through sufficient examination by allcorporate officers. The R&D Committee deliberates and makes decisions on important issues related to research and development.

Showa Denko positions CSR Committee at the top level of our corporate governance system to check allmanagement measures from the CSR perspective. We also established the Security Export Control Committeeand Safety Measures Committee under the CSR Committee. Moreover, we set up Responsible Care PromotionCouncil, Risk Management Promotion Council, Human Rights/Corporate Ethics Promotion Council and IRPromotion Council to deliberate on the respective matters.

Showa Denko employs an auditor system. The Auditors attend the Board of Directors' meetings and otherimportant internal meetings, offering opinions as necessary. They audit the execution of operations throughsuch means as field investigations, hearings from responsible persons, and perusal of important documents, toprovide recommendations and advice to ensure the sound management of the Company. They also audit groupcompanies in cooperation with auditors of major affiliated companies.

Management Team

We have the Internal Audit Department reporting directly to the President. The Internal Audit Departmentinvestigates the overall execution of business including affiliated companies, and verifies its accuracy, validityand efficiency. It also investigates and verifies the functional state of management policies, business plans andinternal control systems. Internal audits and audits by Auditors are mutually coordinated.

Showa Denko concluded an auditing contract with KPMG AZSA, and this audit corporation performsaccounting audits for the Company.The Accounting Auditor confirms the annual audit plan with the Auditors and reports the audit results to them.The Accounting Auditor and the Auditors also exchange information and views as required, to promote theircooperation.

Governing

BodyMembers Meeting frequency

Board ofDirectors

9 members (Two of them are outside directors.)Chairperson: Chairman of the Board

Once or twice a month(The board had 16 meetings in2013. The average rate ofattendance was 98%.)

CSRCommittee

President, Corporate Officers in Charge, and other CorporateOfficers and General Managers of Staff Departments asdeemed necessary by the PresidentChairperson: President

Twice a year in principle

ManagementCommittee

Same as above Once a week in principle

Board ofAuditors

5 Auditors (Three of them are outside Auditors. (One isfemale.))

The annual salary system is used for remuneration to directors. In this system, in addition to the basicremuneration amount determined by each director's position, the annual salary is determined by considering thebusiness performance of both the company and individual and other factors in the relevant fiscal year based onthe business performance evaluation system. The remuneration to the Auditors is determined throughdeliberation at the Board of Auditors.

Remuneration, etc., to Directors and Auditors

Paid amount Number of applicable persons

Directors (excluding outside Directors) ¥258 mill ion 8

Auditors (excluding outside Auditors) ¥53 mill ion 2

Outside Directors and Auditors ¥55 mill ion 5

Implementation status of corporate governance measures

Board of Directors

Management Committee and R&D Committee

CSR Committee

Board of Auditors

Internal Audit Department

Accounting audits

Overview of Governing Bodies/Committees/Councils

Remuneration, etc., to Directors and Auditors, and how it is determined

(As of March 2014)








Management Team




Management Team



Governing


Board ofDirectors



CSRCommittee



ManagementCommittee


Board ofAuditors









Board of Directors


CSR Committee

Board of Auditors


Accounting audits





(As of March 2014)








Management Team




Management Team



Governing


Board ofDirectors



CSRCommittee



ManagementCommittee


Board ofAuditors









Board of Directors


CSR Committee

Board of Auditors


Accounting audits




(As of March 2014)








Management Team




Management Team



Governing


Board ofDirectors



CSRCommittee



ManagementCommittee


Board ofAuditors









Board of Directors


CSR Committee

Board of Auditors


Accounting audits



Corporate governance:

In the narrow sense, this term refers to the relationship between the shareholders and the managers of a company and the mechanism or structure of decision making and business operations in the company. In the broad sense, it refers to the relationship between the company and its stakeholders and is also related to the question, “For whom does the company exist?

Corporate Governance | about | Showa Denko K.K.

http://www.sdk.co.jp/english/about/governance.html[14/09/08 15:47:36]

English Top About Corporate Governance


(As of March 2014)

Implementation status of corporate governance measures Board of DirectorsManagement Committee and R&D Committee CSR Committee Board of AuditorsInternal Audit Department Accounting auditsOverview of Governing Bodies/Committees/CouncilsRemuneration, etc., to Directors and Auditors, and how it is determined

Showa Denko will continue to enhance corporate governance , focusing on the following pointsof view, in order to ensure sound, effective and transparent management, as well as toachieve continuous improvement in our corporate value.



To clearly separate management supervision functions from business execution functions, wehave introduced the corporate officer system. The top management team, consisting of thePresident and corporate officers in charge of respective operations, is working to increase thespeed of decision making and vitalize operations. In addition, we have strengthened thesupervision functions of the Board of Directors by appointing two outside directors.

The Board of Directors decides the Company's basic policies. It also deliberates and decideson matters provided for in the Companies Act and the Company's Articles of Incorporation aswell as important matters for the execution of the Company's operations. We appoint directorswith emphasis on the viewpoint of corporate governance, aiming to strengthen the Board ofDirectors' monitoring and supervisory functions and ensure the propriety of decision makingprocess. We have adopted a management system in which corporate officers dedicatethemselves to business execution, which is their primary duty, but do not concurrently serveas directors, in principle. Furthermore, we have abolished the system of officer directorsexcept the Chairman and the President, while strengthening monitoring by Auditors includingoutside Auditors and mutual supervision among directors.The term of office of directors is set to one year to ensure a quick and flexible formation ofmanagement team corresponding to changes in the business environment.

Management Team

The Management Committee, which is chaired by the President, deliberates and decides onmatters to be referred to the Board of Directors' meetings and important matters pertaining tooverall management of the Company. The decisions are made after deliberations on twooccasions. As for investment plans, their risks are examined by task teams before referral tothe Management Committee, and their progress is monitored after authorization. The basicbusiness policies including Company's medium-term business plans are decided not onlythrough the deliberation of the Management Committee but also through sufficientexamination by all corporate officers. The R&D Committee deliberates and makes decisions on important issues related to researchand development.

Showa Denko positions CSR Committee at the top level of our corporate governance system tocheck all management measures from the CSR perspective. We also established the SecurityExport Control Committee and Safety Measures Committee under the CSR Committee.Moreover, we set up Responsible Care Promotion Council, Risk Management PromotionCouncil, Human Rights/Corporate Ethics Promotion Council and IR Promotion Council todeliberate on the respective matters.

Showa Denko employs an auditor system. The Auditors attend the Board of Directors'meetings and other important internal meetings, offering opinions as necessary. They auditthe execution of operations through such means as field investigations, hearings fromresponsible persons, and perusal of important documents, to provide recommendations andadvice to ensure the sound management of the Company. They also audit group companies incooperation with auditors of major affiliated companies.

Management Team

We have the Internal Audit Department reporting directly to the President. The Internal AuditDepartment investigates the overall execution of business including affiliated companies, andverifies its accuracy, validity and efficiency. It also investigates and verifies the functionalstate of management policies, business plans and internal control systems. Internal audits andaudits by Auditors are mutually coordinated.

Showa Denko concluded an auditing contract with KPMG AZSA, and this audit corporationperforms accounting audits for the Company.The Accounting Auditor confirms the annual audit plan with the Auditors and reports theaudit results to them. The Accounting Auditor and the Auditors also exchange information andviews as required, to promote their cooperation.

GoverningBody

Members Meeting frequency

Board ofDirectors


Once or twice a month(The board had 16meetings in 2013. Theaverage rate ofattendance was 98%.)

CSRCommittee

President, Corporate Officers in Charge, and otherCorporate Officers and General Managers of StaffDepartments as deemed necessary by the PresidentChairperson: President


ManagementCommittee


Board ofAuditors

5 Auditors (Three of them are outside Auditors.(One is female.))

The annual salary system is used for remuneration to directors. In this system, in addition tothe basic remuneration amount determined by each director's position, the annual salary isdetermined by considering the business performance of both the company and individual andother factors in the relevant fiscal year based on the business performance evaluation system.The remuneration to the Auditors is determined through deliberation at the Board of Auditors.



Directors (excluding outside Directors) ¥ 258 million 8

Auditors (excluding outside Auditors) ¥ 53 million 2

Outside Directors and Auditors ¥ 55 million 5

Top Message

Our Vision

Medium-TermBusiness Plan

Profile

Locations

Pamphlet

CorporateGovernance

Procurment


Board of Directors


CSR Committee

Board of Auditors


Accounting audits


Remuneration, etc., to Directors and Auditors, and how it isdetermined








Corporate Governance | about | Showa Denko K.K.

http://www.sdk.co.jp/english/about/governance.html[14/09/08 15:47:36]

English Top About Corporate Governance


(As of March 2014)

Implementation status of corporate governance measures Board of DirectorsManagement Committee and R&D Committee CSR Committee Board of AuditorsInternal Audit Department Accounting auditsOverview of Governing Bodies/Committees/CouncilsRemuneration, etc., to Directors and Auditors, and how it is determined

Showa Denko will continue to enhance corporate governance , focusing on the following pointsof view, in order to ensure sound, effective and transparent management, as well as toachieve continuous improvement in our corporate value.



To clearly separate management supervision functions from business execution functions, wehave introduced the corporate officer system. The top management team, consisting of thePresident and corporate officers in charge of respective operations, is working to increase thespeed of decision making and vitalize operations. In addition, we have strengthened thesupervision functions of the Board of Directors by appointing two outside directors.

The Board of Directors decides the Company's basic policies. It also deliberates and decideson matters provided for in the Companies Act and the Company's Articles of Incorporation aswell as important matters for the execution of the Company's operations. We appoint directorswith emphasis on the viewpoint of corporate governance, aiming to strengthen the Board ofDirectors' monitoring and supervisory functions and ensure the propriety of decision makingprocess. We have adopted a management system in which corporate officers dedicatethemselves to business execution, which is their primary duty, but do not concurrently serveas directors, in principle. Furthermore, we have abolished the system of officer directorsexcept the Chairman and the President, while strengthening monitoring by Auditors includingoutside Auditors and mutual supervision among directors.The term of office of directors is set to one year to ensure a quick and flexible formation ofmanagement team corresponding to changes in the business environment.

Management Team

The Management Committee, which is chaired by the President, deliberates and decides onmatters to be referred to the Board of Directors' meetings and important matters pertaining tooverall management of the Company. The decisions are made after deliberations on twooccasions. As for investment plans, their risks are examined by task teams before referral tothe Management Committee, and their progress is monitored after authorization. The basicbusiness policies including Company's medium-term business plans are decided not onlythrough the deliberation of the Management Committee but also through sufficientexamination by all corporate officers. The R&D Committee deliberates and makes decisions on important issues related to researchand development.

Showa Denko positions CSR Committee at the top level of our corporate governance system tocheck all management measures from the CSR perspective. We also established the SecurityExport Control Committee and Safety Measures Committee under the CSR Committee.Moreover, we set up Responsible Care Promotion Council, Risk Management PromotionCouncil, Human Rights/Corporate Ethics Promotion Council and IR Promotion Council todeliberate on the respective matters.

Showa Denko employs an auditor system. The Auditors attend the Board of Directors'meetings and other important internal meetings, offering opinions as necessary. They auditthe execution of operations through such means as field investigations, hearings fromresponsible persons, and perusal of important documents, to provide recommendations andadvice to ensure the sound management of the Company. They also audit group companies incooperation with auditors of major affiliated companies.

Management Team

We have the Internal Audit Department reporting directly to the President. The Internal AuditDepartment investigates the overall execution of business including affiliated companies, andverifies its accuracy, validity and efficiency. It also investigates and verifies the functionalstate of management policies, business plans and internal control systems. Internal audits andaudits by Auditors are mutually coordinated.

Showa Denko concluded an auditing contract with KPMG AZSA, and this audit corporationperforms accounting audits for the Company.The Accounting Auditor confirms the annual audit plan with the Auditors and reports theaudit results to them. The Accounting Auditor and the Auditors also exchange information andviews as required, to promote their cooperation.

GoverningBody

Members Meeting frequency

Board ofDirectors


Once or twice a month(The board had 16meetings in 2013. Theaverage rate ofattendance was 98%.)

CSRCommittee

President, Corporate Officers in Charge, and otherCorporate Officers and General Managers of StaffDepartments as deemed necessary by the PresidentChairperson: President


ManagementCommittee


Board ofAuditors

5 Auditors (Three of them are outside Auditors.(One is female.))

The annual salary system is used for remuneration to directors. In this system, in addition tothe basic remuneration amount determined by each director's position, the annual salary isdetermined by considering the business performance of both the company and individual andother factors in the relevant fiscal year based on the business performance evaluation system.The remuneration to the Auditors is determined through deliberation at the Board of Auditors.



Directors (excluding outside Directors) ¥ 258 million 8

Auditors (excluding outside Auditors) ¥ 53 million 2

Outside Directors and Auditors ¥ 55 million 5

Top Message

Our Vision

Medium-TermBusiness Plan

Profile

Locations

Pamphlet

CorporateGovernance

Procurment


Board of Directors


CSR Committee

Board of Auditors


Accounting audits


Remuneration, etc., to Directors and Auditors, and how it isdetermined








(As of March 2014)








Management Team




Management Team



Governing


Board ofDirectors



CSRCommittee



ManagementCommittee


Board ofAuditors









Board of Directors


CSR Committee

Board of Auditors


Accounting audits




Human rights training in the Keihin region.

In January 2014, the Keihin Region Human Rights IssuesLecture attended by around 300 employees, was held. Thisevent is held every year and targets plants and affiliatedcompanies in the Keihin region. This year marked the 20th timeof the event. We invite external lecturers every year to provideemployees with opportunities to think about the respect forhuman rights from various perspectives. This year, we invitedMr. Takuma Sessatei, a rakugo performer (professional comicstoryteller), who delivered a lecture titled "Laugh and Think !Human Rights Issues in Everyday Life! ." We receivednumerous comments from participants such as, "It was aprecious opportunity to think about the importance of livingwith compassion".

Human Rights

Policies of respect for human rights Promotion framework Our effortsOur response to conflict minerals

The Showa Denko Group adopted "Compliance with Social Justice and Corporate Ethics" as its basic stance andis making efforts to position the respect for human rights as the core of this stance in order to become a companythat contributes to the society as specified in our management philosophy. We believe that creating a culturewhere employees have correct awareness of human rights and respect each other leads to vitalization of ourcorporate culture, allows us to gain trust from customers and local communities, and contributes to thedevelopment of our company. We strive to act in manners that respect human rights both inside and outside thecompany. We do not permit any discriminatory action, harassment, child labor, forced labor or any otherinappropriate behavior and encourage our business partners to improve their problems to actively promote therespect for human rights.

We have established the Human Rights and Corporate Ethics Promotion Council under the CSR Committee whichis chaired by the President. This Council determines human rights related activities for each year, the direction oflong- and mid-term efforts as well as other matters to raise the Group-wide awareness of the respect for humanrights.

"Our Code of Conduct" stipulates that each employee must not engage in any discriminatory conduct inside andoutside the company. It also stipulates that they must make active efforts to ensure the respect for human rightssuch as encouraging the supply chain or related parties to resolve human rights issues, including ethnicdiscrimination, classism, child labor, forced labor and poverty problems. Based on these policies, in ourworkplaces and subsidiaries, we promote various programs to enhance human rights including enlightenmentactivities to raise employees' awareness of human rights, handling of harassment in workplaces, programs to helpfemale employees and foreign employees play active roles, promotion of employment of handicapped persons,and promotion of CSR procurement.

Enlightening activities regarding human rights

We are developing training tools for employee participatory education as well as providing education on themeswith high social concern such as "handicapped persons," "children," "human rights violations on the Internet,""elderly people," and "human rights problem as a result of the Great East Japan Earthquake."

Handling harassment

We distributed leaflets titled "The Showa Denko Group Does Not Tolerate Harassment" to all employees in orderto ensure that our basic stance is shared by all, and we are also promoting anti-harassment education programs formanagers and supervisors, and skill improvement programs for those in charge of harassment consultation desks.

Support programs to help female/foreign employees play active roles

We listen directly to opinions from many female employees and enhance systems to support work-life balance,support career development through workshops and other opportunities, and organize meetings to exchange viewsto train female managers and leaders.We also organize cultural exchange gatherings with foreign employees to help them establish themselves in thecompany and play active roles.

Employment of handicapped persons

While continuing to increase the number of physically handicapped employees, we are examining challenges andmeasures accompanying acceptance of intellectually/mentally handicapped persons as interns in order to helpthem find employment as well as those accompanying securing employment opportunities forintellectually/mentally handicapped persons.

Human rights in the supply chain

In order to conduct business that takes human rights throughout the supply chain into consideration, we ask our

business partners to respect basic human rights, prohibit discrimination, ensure proper work conditions, andprotect the rights of the workers through our CSR procurement program. We work together with our partners tocomply with these matters.

Purchasing minerals (tin, tantalum, tungsten, and gold) from Congo and its neighboring countries is considered asa large international problem because you fund local armed groups, consequently have a part in local conflicts,and cause violation of human rights and environmental destruction by purchasing them.The Showa Denko Group properly addresses the conflict minerals problem according to the following itemsin “Our Code of Conduct and Its Practical Guide.”

1-(4)-6) Human right in supply chains

1-(4)-7) Human right due diligence

2-(2)-5) CSR procurement

Policies of respect for human rights

Promotion framework

Our efforts

Human rights training held in the Keihin region.

Addressing Conflict Minerals

In selecting suppliers, we seriously consider how human rights are respected at each supplier and its ownsuppliers, and call for improvement if any problem is found.

We ensure that our corporate activities do not have an adverse impact on human right.

We promote CSR procurement and contribute to sustainable growth of society in cooperation with ourbusiness partners.



Human Rights







Handling harassment














Promotion framework

Our efforts






Human Rights




Human Rights







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Promotion framework

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Our Code of Conduct and I t sPrac t ica l Guide

"Our Code of Conduct and I ts Pract ical Guide" was establ ished as aguidel ine for employees to think and act to substant ia te themanagement phi losophy. The fol lowing f ive i tems have beenst ipulated in order for each employee to fulf i l l their responsibi l i ty asa member of our group and contr ibute to the sustainable developmentof internat ional society.1. We wil l act with integri ty as a responsible c i t izen of theinternat ional society.2. We wil l provide our customers with sat isfact ion and safety.3. We wil l develop corporate cul ture that helps every member of theGroup to ful ly display his /her abi l i ty .4 . We wil l meet the expectat ions of local communit ies .5 . We wil l make vigorous effor ts to maintain and improve the globalenvironment .We are a lso engaged in effor ts to respect divers i ty , which includes thetranslat ing of these codes of conduct into nine languages to ensurethat overseas group companies are a lso thoroughly aware of theircontent .

Tra in ing c lass a t Tokyo Headquar te r(Oct . 28 , 2013)

Tra in ing c lass a t Osaka Branch (Nov. 8 ,2013)

Corporate Ethics and Compliance

Basic concept Compliance promotion framework Our Code of Conduct and I ts Pract ical GuideCorporate Ethics Month Corporate Ethics Hotl ine

The Showa Denko Group posi t ions "compliance with social just ice and corporate e thics" as the topmanagement pr ior i ty and operates the company based on compliance. We have establ ished the HumanRights /Corporate Ethics Promotion Counci l under the CSR Commit tee which is chaired by the President ,as a companywide infrastructure to promote and establ ish law-abiding business management . We have alsoplaced compliance and corporate e thics in the f i rs t i tem of "Our Code of Conduct and I ts Pract ical Guide"to promote thorough understanding of them.

We have appointed a Chief Risk Off icer (CRO), who is in charge of r isk and compliance managementacross the company, to ensure business management based on compliance. We set January every year asCorporate Ethics Month to review compliance across the company and promote fur ther penetrat ion ofcompliance through t ra ining organized by Staff Departments and compliance promotion frameworks ineach organizat ion. Furthermore, in addi t ion to recurrence prevent ion measures and the proper punishmentfor compliance violat ions, there is a f ramework in place to prevent or f ind and properly address problemsat an ear ly s tage through an internal check system and inside denunciat ion system.

The Showa Denko Group has set January every year as Corporate Ethics Month s ince 2004. We hold groupdiscussions using "Our Code of Conduct and I ts Pract ical Guide" in each workplace, including overseasgroup companies , as wel l as other effor ts . In addi t ion, a l l execut ives s ign and submit "The Oath ofOff ice ," while a l l managers s ign and submit "The Oath of Compliance with Our Code of Conduct and I tsPract ical Guide."Furthermore, we have introduced E-learning courses on corporate e thics and compliance that targetmanagers . These courses are a lso cont inuously implemented as required learning i tems for those who havebeen promoted. E-learning programs on individual laws and regulat ions, and information securi ty are a lsoprovided, with which we enhance the contents of the educat ion.

A "Corporate Ethics Hotl ine" has been establ ished for group employees in Japan to prevent , or correct a tan ear ly s tage, mat ters that confl ic t with var ious rules such as laws and internal regulat ions as wel l asviolat ions of corporate e thics . We also added an external consul ta t ion desk to the exis t ing internalconsul ta t ion desk to enhance measures against power and sexual harassment to quickly resolve suchproblems including those at domest ic group companies . In 2013, there were 41 reports or consul ta t ions,which the company addressed while focusing on providing feedback to the individual who made the reportor consul ta t ion. This , coupled with spreading awareness of these desks and how to use them, are par t ofour effor ts to create an environment that makes i t easy for employees to use these services . Our fouroverseas group companies have also establ ished internal report ing desks, and these act ivi t ies wil l befur ther expanded in the future .

Training for those who work at the Harassment Consul ta t ion Desk was held in October and November2013. There were 40 people in a t tendance. A lecturer f rom cuorec3 Inc. , which provides us with theexternal consul ta t ion services , was invi ted to provide pract ical t ra ining that included role-playingsessions where real is t ic consul ta t ion detai ls based on our group management were used as themes.Persons in charge of the consul ta t ion desks at Showa Denko Group companies across Japan gatheredto improve their ski l ls regarding consul ta t ion, which they provide on a dai ly basis , to help as manyemployees as possible .

Basic concept

Compliance promotion framework


Corporate Ethics Month

Corporate Ethics Hotline

Training held for those who work at the Harassment ConsultationDesk.












Basic concept



















Basic concept







Disas te r p revent ion dr i l l a t Tokuyama

Plant (May 21 , 2014)

Media t ra in ing a f te r the d i sas te r

prevent ion dr i l l

Risk Management

Risk management system Risk management act ivi t iesRisk inventory

We have establ ished a r isk management system around the CRO (Chief Risk Officer) . Important r isk-related matters are del iberated by the Risk Management Promotion Counci l and determined by the CSRCommittee .

We manage r isks concerning company act ivi t ies , including environmental preservat ion, securi ty anddisaster prevent ion, product qual i ty , export control , agreements , e tc . , through prel iminary reviews and anapproval system based on internal rules and regulat ions. In addi t ion, off ices engage in effor ts on a dai lybasis to minimize r isks such as f i res , explosions, leakages, work-related accidents , occupat ional diseases ,poor qual i ty products , and environmental contaminat ion and keep their impacts to a minimum even i f theyshould occur .

Since 2007, our Group has been conduct ing r isk inventory every year , including i ts overseas bases . Riskinventory is conducted in the order of (1) extract ion of r isks , (2) assessment of potent ial impact , (3)planning of countermeasures , and (4) implementat ion and confirmation of countermeasures . We plan andimplement company-wide measures against common r isks chosen from the r isks extracted by each sect ion.In 2013, we addressed common r isks such as ear thquake r isks , information securi ty r isks , and generalaffairs r isks .

Risk inventory f low chart

Earthquake risks

We consider factors such as the est imated frequency of ear thquakes and ear thquake motion in the regionswhere our off ices are located in order to determine pr ior i ty for each bui lding and faci l i ty . We thenperform seismic diagnoses and ear thquake reinforcement . Moreover , s ince 2007, we have been working onBusiness Cont inui ty Plans (BCP) as provis ion against ear thquakes. We create a BCP promotionframework, es tabl ish basic pol ic ies , determine important operat ions at each business divis ion, worksi te ,and major aff i l ia ted companies , and f ind bot t lenecks related to these important operat ions. We alsoestabl ish plans, document them, and then work to embed these effor ts through educat ion and t raining. Allof these effor ts are conducted while referr ing to the business cont inui ty guidel ines from the CabinetOff ice . The Business Cont inui ty Plans (BCP) that are created are reviewed as needed.

Information security risks

While the development of information technology has dramatical ly improved the qual i ty , volume andspeed of information being handled, there have also been information-related cr imes and accidents such asthe leaking of confident ial information or personal data , and tampering of websi tes . We have establ ishedBasic Guidel ines for Information Securi ty , Information Securi ty Regulat ions and Personal InformationProtect ion Guidel ines to minimize damage to our business by properly addressing information-relatedrisks . In addi t ion, we have also bui l t a f ramework to ensure business cont inui ty. We also take everyopportuni ty to provide information through E-learning, and educat ional act ivi t ies during the InformationSecuri ty Month as wel l as other act ivi t ies to spread pol ic ies , rules and other information related toinformation securi ty .As par t of our effor t to s t rengthen systematic countermeasures against new threats to our informationsystems, we are cont inuing to s t rengthen countermeasures against targeted at tacks and informationsecuri ty governance at each overseas group company. In regards to the rules , rules concerning the use ofsmart phones and tablet terminals were added to the Detai led Rules of the Information Securi tyRegulat ions in Apri l 2013.

Efforts to enhance the security of manufacturing control systemsAs countermeasures against the threat of global cyber terror ism, our group works to prevent viruses f rombeing brought into manufactur ing faci l i t ies based on our voluntar i ly establ ished securi ty guidel ines formanufactur ing control systems in order to reduce the r isk of infect ion of computer viruses .

General affairs risks

In order to enhance the r isk management of general affairs work, s ince 2009, our group (1) ident i f iesadministrat ion r isks by using the guidel ines that cover al l general affairs work from the viewpoint of r iskand plans countermeasures , (2) shares advanced examples and procedures to cope with var ious s i tuat ions,enhances the database to promote understanding of laws, (3) has per iodic management and work-levelmeet ings ( t ra ining) in order to enhance cooperat ion between persons in charge of general affairs , and (4)exchanges opinion at off ices and plants . In 2013, we exchanged opinions at e ight off ices under the themeof "Succeeding Knowledge," as wel l as aggregate , share and discuss the issues faced by those in chargesat a l l off ices .

Each business s i te of the Showa Denko Group conducts media t ra ining as par t of i ts r iskmanagement .If a ser ious accident or disaster occurs , confl ic t ing information could cause fur ther confusion or asecondary disaster . This t ra ining enables par t ic ipants to gain pract ical experience and learn how tof ind potent ia l r isks so that they are able to plan disaster prevent ion measures and properly discloseinformation even in an emergency.In addi t ion, media t ra ining is included as par t of regular disaster prevent ion dr i l ls a t some businesssi tes . Par t ic ipants learn how to gather and promptly report information to re la ted par t ies whileprior i t iz ing quick control of the s i tuat ion and ensure the safety of workers . They also learn to f indproblems in comprehensive t ra ining, and ref lect this on reviews of the cr is is management framework.

Risk management system

Risk management activities

Risk inventory

Implementing media training


Plant (May 21 , 2014)



Risk Management






Earthquake risks










Risk inventory


Risk Management



Plant (May 21 , 2014)



Risk Management






Earthquake risks










Risk inventory



The recrui t ing and foster ing of personnel who areengaged in rapidly developing global businesses ar eimportant themes for our group .For this purpose, we cont inue employing newforeign nat ional graduates by recrui t ing foreignstudents a t Japanese universi t ies as wel l as throughdirect recrui t ing act ivi t ies a t univers i t ies in China,Singapore, and other countr ies . Many global lycompeti t ive employees current ly play act ive roles byusing their advanced expert ise and technology.In regards to foster ing personnel , in addi t ion toshort- term study abroad programs to learn languagessuch as Engl ish or Chinese, we also have two-yea rstudy abroad systems for research surveys, to learnspecial ized management knowledge or othersubjects .

Diversi ty leaf le t (October 2013) Lecture on divers i ty (December 2013)

In 2014, the Showa Denko Group set “promotion of divers i ty” as oneof i ts business pol ic ies , and s tar ted making effor ts in this f ie ld .As part of these effor ts , we decided to establ ish the Diversi ty CEOAward to commend effor ts that “make the most of your potent ia l ”and/or “make the most of others’ potent ial . ”Efforts that “make the most of your potent ial” and “make the most o fothers’ potent ia l” mean “improving the creat ivi ty of organizat ion andindividuals by mutual ly leveraging the diversi ty” and “creat ing af lexible and act ive organizat ion that creates new values.” Our CEOwil l commend groups or individuals that improve our corporate valueby reviewing management , communicat ion, work s tyle and themselvesand making new efforts with this Award .The f i rs t award ceremony is planned to be held in October 2014 .

Percentage of handicapped employees

Trends in the number of employees onconsol idated basis

Trends in working hours (per employee peryear)

Annual paid hol idays taken (per employee peryear)

SDK acqui red

"Kurumin" mark

(2008)

We acquired the "Kurumin" next-generat ion cert i f icat ion mark in 2008. O nDecember 18, 2013, we were again accredi ted as a general business tha tcomplies with s tandards based on the Act on Advancement of Measures t oSupport Rais ing Next-Generat ion Children by the Tokyo Labour Bureau of theMinist ry of Heal th , Labour and Welfare . This accredi ta t ion was to recognize ou ract ivi t ies to create and carry out the fol lowing act ion plan .

We implement a chi ldcare leave acquisi t ionpromotion campaign target ing male employees whoare el igible for this leave as wel l as their superior sduring the summer vacat ion period every year .

Labor Practices

Improvement of personnel system and human resource t ra iningCommunicat ion-based personnel evaluat ion systemRecrui t ing and foster ing global ly competi t ive personnelOffer ing opportuni t ies for diverse individuals to make ful l use of their abi l i t ie sCreat ing a comfortable workplacePromoting sound work-l i fe balanceRelat ions with the labor union

We set for th " to provide roles (OJT) and educat ional opportuni t ies (OFF-JT) sui table for the abi l i t ies o fmotivated personnel to support their growth" as a human resource development pol icy in our ongoin gmedium-term consol idated business plan "PEGASUS."As part of this pol icy, we formulated new educat ional systems for the ent i re Group in 2011. The char tbelow i l lustrates the relat ionship of the educat ional systems with the "Forest ," represent ing energet ic anddiverse people growing and evolving.

Showa Denko's t ra ining system

As one of the management tools for maximizing the achievements of the organizat ion by increasing th epart ic ipat ion of a l l employees in the deployment of management s t ra tegies , the Company has developed anMBO (Management by Object ives) system.Through candid discussions between a superior and a subordinate s tar t ing from set t ing object ives t oevaluat ion, the mutual understanding and sat isfact ion is enhanced. Furthermore, a superior nurture shuman resources by making his /her expectat ion known to the subordinate , providing assis tance toward theat ta inment of object ives .Resul ts of evaluat ion are ref lected on the t reatments (salary and bonus) as contr ibut ion of the individualto the company.

[VOICE] After participating in the short-term overseas language educationprogram

I went to the United States to learn Engl ish for s ix months from September 2013. I s tayed for threemonths each in two ci t ies because I wanted to experience many aspects of American cul ture . I nBoston, I met a var ie ty of people who matched that his tor ic , academic ci ty and was s t imulated bytheir experiences and future vis ion. In San Francisco, an ever-changing ci ty ful l of diversi ty , Iimproved my speaking ski l ls through more pract ical c lasses that included market ing an dpresentat ions with powerful c lassmates.Living with people with different backgrounds and values brought endless surprises every day. I tmade me become aware how narrow my vision was, and I now try to see things in a f lexible an dbroader perspect ive. I would l ike to use this experience to create a bet ter re la t ionship with coworkersin and out of Japan.

Akiko Masuj imaMarket ing Department I I , Ceramics Divis ion

wi th my c lass mates

Diversity strategy

The Showa Denko Group is engaged in diversi ty management with the fol lowing key phrases: "Make th emost of the potent ial of yourself ." and "Make the most of the potent ial of others . "

I l lustrated Image of SDK Diversi ty

Diversi ty promotion framework

Employment of the aged

The "Revised Law Concerning Stabi l izat ion of Employment of Older Persons" was enforced from Apri l2013, and i t became mandatory to reemploy older persons up to 65 years of age.We star ted reemploying ret i red employees in 2006. They cont inue to use their ski l ls and expert ise for th ecompany.I t is very important to foster la ter generat ions and pass on ski l ls . Many reemployed employees use theirpast careers and enjoy working as re l iable seasoned employees, for example by working in the off icewhile act ing as instructors to teach ski l ls in the f ie ld that they special ize in .

Employing handicapped persons

In order to create a workplace where diverse people can make the most of themselves, we employhandicapped persons and encourage them to cont inuously play act ive roles .We wil l cont inue to create a workplace where each individual can make the most of him or herself b yworking with the Hel lo Work, job assis tance organizat ions for handicapped people , special-needs school sand other organizat ions .

We accept internship s tudents in the headquarters area from several job assis tance organizat ions fo rhandicapped people , special-needs schools and other organizat ions in order to provide them withwork experience so that people with mental disabi l i t ies can f ind employment and cont inue to work .For example, we accepted eight s tudents between October and December 2013 .Moreover , i t i s off ic ia l ly approved by the Minist ry of Heal th, Labor and Welfare that Showa Denk owil l take part in the abovementioned Project in 2014, and we wil l cont inue accept ing internshi pstudents .

Hiring and developing female employees

We had a campaign to promote act ive work by female workers for f ive years between 2008 and 2012 ,aiming to be a company where workers can shine regardless of gender .We establ ished the fol lowing four pi l lars of (1) Act ive hir ing and assignment of female workers , (2 )Support for career design and ski l l development , (3) Formation of management and corporate cul tures tha trespect divers i ty and (4) Creat ion of an environment that a l lows various work s tyles . After implementinga variety of measures, we achieved increases in the percentage of female workers (9.6% in Japan onl y(+3.4% compared with that in 2007), 10.3% Japan - consol idated (+0.6% compared with that in 2007) andthe number of female managers (15 female managers in Japan only ( there were 7 female managers as o fthe end of 2007), both as of the end of 2013 .We wil l cont inue with measures to s t rengthen and support these efforts .

I t i s important for the growth of our Group that i t meets social needs through the l ively work ofemployees being able to be in harmony with society .We wil l cont inue with our efforts to review work s tyles such as reducing the total number of work hours ,increasing the use rate of annual paid hol idays so that each employee can enjoy a frui t ful social l i fe .

Showa Denko provides a var ie ty of work-l i fe balance support programs sui ted to diverse l i fe s tages o femployees. Furthermore, we promote the fol lowing measures to encourage both male and femal eemployees to take advantage of the chi ldcare and family care leave programs .

Pr incipal support systems for a sound work-l i fe balance

Main sys tems Descr ip t ion

Chi ldcare leave

El ig ib le : Employees wi th one or more years of cont inuous se rv ice who l ive wi th

dependent ch i ldren of le ss than two years of age . Avai lab le th rough the day

preceding the ch i ld ' s second b i r thday .

Shor tened working

hours fo r

ch i ldcare / fami ly ca re

El ig ib le : Employees wi th one or more years of cont inuous se rv ice and who have a

chi ld of p reschool age or who are e l ig ib le for fami ly-care leave . E l ig ib le

employees may choose to reduce s tandard work ing hours by up to two hours /day .

Cumula t ive leave

El ig ib le : Employees who have accumula ted leave t ime (annual pa id ho l idays

car r ied over f rom year to year ) . E l ig ib le employees may take leave to a t tend

school events a t day nursery , k indergar ten , o r e lementary school un t i l the i r ch i l d

gradua tes e lementary school , o r to care for a ch i ld un t i l the ch i ld gradua te s

e lementary school .

Fami ly care leave

El ig ib le : Employees wi th one or more years of cont inuous se rv ice who have a

fami ly member requi r ing nur s ing care . Both shor t - te rm leave (30 days in to ta l over

a th ree-month per iod) and long- te rm leave (12 consecut ive months or 12 months in

to ta l over a two-year per iod) a re of fe red .

Number of employees who took the advantage of the work-l i fe balance support systems (from January 1,2008 to December 31, 2013)

Showa Denko K.K. ( inc luding employees on loan )

Male Female Tota l

Chi ldcare leave 166 143 309

Fami ly care leave 6 2 8

Shor tened working hours for ch i ldcare / fami ly car e 2 126 128

"Childcare leave campaign for fathers" (Started in 2008)

Reinstatement support program" for those taking the childcare leave and the superiors(Started In 2011)

1. Reins ta tement suppor t in te rv iewPer iodic in te rv iews wi th super iors a re provided dur ing the per iod f ro m

pregnancy , ch i ldcare leave to re in s ta tement .

2 . Re ins ta tement suppor t sys tem

Adopted an In te rne t se rv ice which a l lows the co l lec t ion of ch i ldcar e

informat ion f rom home persona l computers or mobi le phones ,

a t tendance of e - learn ing , e -mai l exchange wi th super iors , e tc . (38

employees have used th i s se rv ice to da te )

3 . Work &chi ldcare compat ib i l i t y

suppor t gu ide

Crea ted and d i s t r ibu ted a guide which summarizes the sys tem regard ing

pregnancy , ch i ldb i r th and ch i ldcare .

4 . Consul ta t ion desk Estab l i shed a work & chi ldcare compat ib i l i ty suppor t consu l ta t ion desk

The company and the labor union has establ ished a relat ionship of t rust over many years by establ ishin g(1) Solut ions through discussions, (2) Pursui t of s table employment and job sat isfact ion, and (3) Workingtogether to improve work condit ions through company growth and higher profi tabi l i ty as the basis of th elabor agreement . We confirm and share management pol icies , improve work condit ions and make othe refforts through regular dialogs in the Labor-Management Committee .

Labor-management Jo in t Respons ib le Care Tra in ing(Isesak i P lan t , June , 2014)

Improvement of personnel system and human resource training

Communication-based personnel evaluation system

Recruiting and fostering globally competitive personnel

Offering opportunities for diverse individuals to make full use of their abilitie s

We will start awarding the Diversity CEO Award!

Showa Denko will take part in "The Model Projects to PromoteEmployment of Mentally Handicapped People in 2014" under thesponsorship of the Ministry of Health, Labour and Welfare

Creating a comfortable workplace

The manufac tur ing indus t ry average was prepared

us ing the da ta in the "Annual repor t on the

month ly labour survey" pub l i shed by the Minis t ry

of Heal th , Labour and Welfare

1 The manufac tur ing indus t ry average was prepared

us ing the da ta in the "Genera l survey on working

condi t ions" pub l i shed by the Minis t ry of Heal th ,

Labour and Welfare .

2

Promoting sound work-life balance

SDK was accredited again as a supporting company for childrearing

Relations with the labor union








SDK acqui red

"Kurumin" mark

(2008)



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Labor Practices | Social and Environmental Measures | SHOWA DENKO K.K.

http://www.sdk.co.jp/english/csr/employee.html[14/09/08 15:56:48]

In 2014, the Showa Denko Group set “promotion of diversity”as one of its business policies, and started making efforts inthis field.As part of these efforts, we decided to establish the DiversityCEO Award to commend efforts that “make the most of yourpotential” and/or “make the most of othersʼ potential.”Efforts that “make the most of your potential” and “make themost of othersʼ potential” mean “improving the creativity oforganization and individuals by mutually leveraging thediversity” and “creating a flexible and active organization thatcreates new values.” Our CEO will commend groups orindividuals that improve our corporate value by reviewingmanagement, communication, work style and themselves andmaking new efforts with this Award.The first award ceremony is planned to be held in October2014.

■ Percentage of handicapped employees

■ Trends in the number of employees onconsolidated basis

■ Trends in working hours (per employeeper year)

■ Annual paid holidays taken (per employeeper year)

SDK acquired"Kurumin" mark

(2008)

We acquired the "Kurumin" next-generation certification mark in 2008.On December 18, 2013, we were again accredited as a generalbusiness that complies with standards based on the Act onAdvancement of Measures to Support Raising Next-Generation Childrenby the Tokyo Labour Bureau of the Ministry of Health, Labour andWelfare. This accreditation was to recognize our activities to createand carry out the following action plan.

We implement a childcare leave acquisitionpromotion campaign targeting male employeeswho are eligible for this leave as well as theirsuperiors during the summer vacation periodevery year.


The "Revised Law Concerning Stabilization of Employment of Older Persons" was enforced fromApril 2013, and it became mandatory to reemploy older persons up to 65 years of age.We started reemploying retired employees in 2006. They continue to use their skills andexpertise for the company.It is very important to foster later generations and pass on skills. Many reemployed employeesuse their past careers and enjoy working as reliable seasoned employees, for example byworking in the office while acting as instructors to teach skills in the field that they specializein.


In order to create a workplace where diverse people can make the most of themselves, weemploy handicapped persons and encourage them to continuously play active roles.We will continue to create a workplace where each individual can make the most of him orherself by working with the Hello Work, job assistance organizations for handicapped people,special -needs schools and other organizations.

We accept internship students in the headquarters area from several job assistanceorganizations for handicapped people, special -needs schools and other organizations inorder to provide them with work experience so that people with mental disabilities canfind employment and continue to work.For example, we accepted eight students between October and December 2013.Moreover, it is officially approved by the Ministry of Health, Labor and Welfare that ShowaDenko will take part in the abovementioned Project in 2014, and we will continueaccepting internship students.


We had a campaign to promote active work by female workers for five years between 2008 and2012, aiming to be a company where workers can shine regardless of gender.We established the following four pillars of (1) Active hiring and assignment of femaleworkers, (2) Support for career design and skill development, (3) Formation of managementand corporate cultures that respect diversity and (4) Creation of an environment that allowsvarious work styles. After implementing a variety of measures, we achieved increases in thepercentage of female workers (9.6% in Japan only (+3.4% compared with that in 2007), 10.3%Japan - consolidated (+0.6% compared with that in 2007) and the number of female managers(15 female managers in Japan only (there were 7 female managers as of the end of 2007),both as of the end of 2013.We will continue with measures to strengthen and support these efforts.

It is important for the growth of our Group that it meets social needs through the lively workof employees being able to be in harmony with society.We will continue with our efforts to review work styles such as reducing the total number ofwork hours, increasing the use rate of annual paid holidays so that each employee can enjoya fruitful social life.

Showa Denko provides a variety of work-life balance support programs suited to diverse lifestages of employees. Furthermore, we promote the following measures to encourage both maleand female employees to take advantage of the childcare and family care leave programs.

■ Principal support systems for a sound work-life balance

Main systems Description

Childcare leaveEligible: Employees with one or more years of continuous service wholive with dependent children of less than two years of age. Availablethrough the day preceding the child's second birthday.

Shortened workinghours forchildcare/family care

Eligible: Employees with one or more years of continuous service andwho have a child of preschool age or who are eligible for family-careleave. Eligible employees may choose to reduce standard working hoursby up to two hours/day.

Cumulative leave

Eligible: Employees who have accumulated leave time (annual paidholidays carried over from year to year). Eligible employees may takeleave to attend school events at day nursery, kindergarten, orelementary school until their child graduates elementary school, or tocare for a child until the child graduates elementary school.

Family care leave

Eligible: Employees with one or more years of continuous service whohave a family member requiring nursing care. Both short- term leave (30days in total over a three-month period) and long- term leave (12consecutive months or 12 months in total over a two-year period) areoffered.

■ Number of employees who took the advantage of the work-life balance support systems(from January 1, 2008 to December 31, 2013)※Showa Denko K.K. (including employees on loan)

Male Female Total

Childcare leave 166 143 309

Family care leave 6 2 8

Shortened working hours for childcare/family care 2 126 128

(Second Term Action Plan (September 1, 2008 to August 31, 2013))

Goal 1

Introduce a reinstatement support system such as providing information andeducation to employees who are taking childcare leave within the plan period.(Goal achievement status)A reinstatement support system has been started.

Goal 2

Implement measures to reduce overtime work within the plan period.(Goal achievement status)- We approached the labor union about revisions to the Agreement onOvertime.- We announced revisions of the Agreement on Overtime to the entirecompany.

Goal 3Organize business site visits for local children within the plan period.(Goal achievement status)The event was held six times at the Chichibu Plant.



Showa Denko will take part in "The Model Projects toPromote Employment of Mentally Handicapped People in2014" under the sponsorship of the Ministry of Health,Labour and Welfare


The manufacturing industry average wasprepared using the data in the "Annualreport on the monthly labour survey"published by the Ministry of Health, Labourand Welfare

※1 The manufacturing industry average wasprepared using the data in the "Generalsurvey on working conditions" published bythe Ministry of Health, Labour and Welfare.

※2


SDK was accredited again as a supporting company forchild rearing








SDK acqui red

"Kurumin" mark

(2008)



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SDK acqui red

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Reinstatement support program" for those taking the childcare leave andthe superiors (Started In 2011)

1. Reinstatement supportinterview

Periodic interviews with superiors are provided during theperiod from pregnancy, childcare leave to reinstatement.

2. Reinstatement supportsystem

Adopted an Internet service which allows the collection ofchildcare information from home personal computers or mobilephones, attendance of e - learning, e -mail exchange withsuperiors, etc. (38 employees have used this service to date)

3. Work &childcarecompatibility support guide

Created and distributed a guide which summarizes the systemregarding pregnancy, childbirth and childcare.

4. Consultation deskEstablished a work & childcare compatibility supportconsultation desk

The company and the labor union has established a relationship of trust over many years byestablishing (1) Solutions through discussions, (2) Pursuit of stable employment and jobsatisfaction, and (3) Working together to improve work conditions through company growthand higher profitability as the basis of the labor agreement. We confirm and sharemanagement policies, improve work conditions and make other efforts through regular dialogsin the Labor-Management Committee.

Labor -management Joint Responsible Care Training(Isesaki Plant, June, 2014)










SDK acqui red

"Kurumin" mark

(2008)



Labor Practices









Diversity strategy















Chi ldcare leave




Shor tened working

hours fo r





Cumula t ive leave






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suppor t gu ide





















2





Showa Denko undertakes CSR procurement ,at taching importance to the society- andenvironment-conscious business act ivi t ies in theent i re supply chains from the procurement of rawmater ials to manufacture and sale . Our CSRprocurement a ims to mutual ly improve corporatevalue of both suppl ier par tners and Showa Denko bysharing and complying with the Showa Denko GroupCSR Procurement Guidel ines with suppl ier par tnersthrough communicat ion to fur ther enhance mutualt rust .2013 is the f i f th year s ince we s tar ted CSRprocurement and fal ls under the second 3-year cycle .In this second cycle , we are moving forward withdeepening act ivi t ies and expanding our object ives.In addi t ion, we have expanded these CSRprocurement act ivi t ies to domest ic group companies ,gained consent f rom four group companies , andconducted "self-assessments" of their par tners . Wewil l a im to make fur ther "CSR vis i ts" and expandthese act ivi t ies to other group companies .We wil l cont inue to commit ourselves to theact ivi t ies of CSR procurement , with the consent andcooperat ion of a l l our par tners .

Trend of patent appl icat ion rat io in Japanand abroad

As the majori ty of Showa Denko's businesses are operatedglobal ly, we aggressively apply for patents in foreigncountr ies with the aim of support ing those businessesfrom the intel lectual property s ide.The chart shown in the r ight is a composi t ion of datashown in "Japan Patent Off ice Annual Report 2014" andSDK's own data on the number of appl icat ions forpatents . I t i l lust ra tes that the Showa Denko's globalappl icat ion rat ios were about 10% higher than those byal l appl icants .We also make every effor t to secure our superior i ty basedon intel lectual property r ights , especial ly in the principalbusinesses and newly developed important products byestabl ishing patent networks.

Fair Business Practice and Customer Care

Basic pol icy on purchasing CSR procurement act ivi t iesEfforts to meet environmental and social demandsPrevent ion of Corrupt ion and BriberyConformance to the Antimonopoly Act Securi ty export controlProtect ion of intel lectual property

Showa Denko has es tabl ished basic pol ic ies to promote CSR procurement and selects suppl iers (par tners)according to them.

Outline of the basic policies:

Efforts to select and procure products that have the lowest possible environmental impact based on theconcept of being "ear th fr iendly" throughout a l l cycles from mater ial procurement to usage and disposalare rapidly spreading across the world. This movement can be seen mainly among customers in theinformation equipment , e lectr ical and electronic products , and automobile f ie lds .The Showa Denko Group responds appropriately and in good fai th to meet customer requests to reduce theuse of harmful substances and to reassure customers that the Group's products do not use or incorporateharmful chemical substances subject to regulat ions in the EU or other regions.

"Our Code of Conduct and I ts Pract ical Guide" provides that effor ts must be made to prevent br ibery andother corrupt ion. Giving, accept ing or demanding bribes , or other pr ivate abuses of power hinders thesound development of society and the Showa Denko Group wil l never faci l i ta te such act ions. In addi t ionto establ ishing legal guidel ines to prohibi t br ibery, our group also provides educat ion on ant i -br ibery lawsin each country to related organizat ions in order to reaff i rm and ensure the prohibi t ion of br ibery basedon laws in each country.

Our Code of Conduct

1.We wil l act with integri ty as a responsible c i t izen of the internat ional society.⑤We wil l work to prevent br ibery and other forms of corrupt ion.

"Our Code of Conduct and I ts Pract ical Guide" clar i f ies that our group must conduct business based onfair and free competi t ion, which is essent ia l to the sustainable development of internat ional society. Thisconcept is posi t ioned as the basic s tance of our group and we thoroughly conform to competi t ion laws ineach country. Our group has establ ished the Antimonopoly Act Compliance Manual and rules oncontact ing other companies in the same industry. We also provide educat ion for the Sales Department aswel l as other re la ted organizat ions on this manual and these rules and promulgate compliance with theAntimonopoly Act to ensure free and fair compet i t ion.

Our Code of Conduct

1. We wil l act with integri ty as a responsible c i t izen of the internat ional society.③We wil l conduct business based on the pr inciple of fair and free competi t ion.

"Our Code of Conduct and I ts Pract ical Guide" s t ipulates that we must appropriately fol low the productexport and cargo import procedures .In 2013, the use and processing of chemical weapons during the Syrian Civi l War and the diversion ofJapanese civi l ian products (ship antennas) to use on Chinese destroyers made headl ines f rom theperspect ive of internat ional securi ty . In addi t ion, the arrests and t r ia ls of Aum Shinrikyo cul t membersresurfaced memories of chemical terror ism where sar in nerve gas was used in the Tokyo subway system.Showa Denko conducts thorough and rel iable reviews by placing the Securi ty Export Control Commit teeunder the CSR Commit tee and by establ ishing systems to determine compliance, screen customers andset t le t ransact ions in order to check whether government permission is required for a l l export products .As par t of our social responsibi l i t ies , Showa Denko wil l engage in s teady effor ts to ensure that ourproducts never threaten internat ional peace and securi ty .

Our Code of Conduct

1. We wil l act with integri ty as a responsible c i t izen of the internat ional society.①We wil l act in s t r ic t compliance with laws and regulat ions and according to high ethical s tandards

Acquisition of intellectual property rights and establishment of patent networks

Risk management

One of our Codes of Conduct is to respect the intel lectual property r ights of others . Star t ing in 1996, wehave bui l t a patent monitoring framework to constant ly grasp t rends in the intel lectual property r ights ofother par t ies . In 2005, we s tar ted digi t iz ing this f ramework in 2011, we introduced the Shareresearch acompany-wide patent search system developed by Hitachi , and establ ished a framework that a l lows us tomonitor foreign patents as wel l .

System relating to employee inventions

Although we changed our system related to employee invent ion in 2005 fol lowing the revis ion of thePatent Act in 2004, we have also fur ther changed the system in 2011 in order to improve fairness forinventors (enforced on July 1, 2011).We have never faced l i t igat ion by inventors regarding patent compensat ion for employee invent ionscalculated based on our Employee Invent ion Regulat ions.We have also revised the commendat ion system to promote the f i l ing of more valuable patent appl icat ions.Convent ional ly , only the top 3 employees in numbers of patent appl icat ions f i led the previous year wereappl icable for commendat ions. However , f rom 2013, we have also included the top 3 employees innumbers of patents regis tered the previous year as being appl icable for commendat ions. As for the patentsappl ied for by Showa Denko, we s tar ted the introduct ion of our patents pending in the in-house newslet terthat the Japan Patent Off ice examiner quoted most f requent ly during the previous f iscal year in order torender a decis ion of f inal re ject ion of patents appl ied by other companies .

Basic policy on purchasing

We wil l take a comprehensive approach in select ing most sui table suppl ier par tners based uponeconomic rat ional i ty by taking into considerat ion qual i ty , pr ice, del ivery period, credibi l i ty ofmanagement , safety, services , technological competence and at tent ion to environment and society.

1)

In select ing our suppl ier par tners , we have an open-door pol icy for business opportuni t ies withsincer i ty , fa i rness and honesty, disregarding the nat ional i ty , past records of t ransact ion and thecorporate group relat ionship of the candidate companies .

2)

Our purchasing act ivi t ies shal l be in compliance with laws and regulat ions, as wel l as our internalrules .

3)

CSR procurement activities

Efforts to meet environmental and social demands

Prevention of Corruption and Bribery

1）Prevent ing corrupt ionWe prohibi t any act , leading to corrupt ion, such as giving, accept ing or demanding br ibes .2）Prohibi t ion on enter ta ining publ ic off ic ia lsWe prohibi t enter taining or gif t -giving for nat ional or s imilar publ ic off ic ials both in Japan andabroad in connect ion with their jobs. In Japan, we prohibi t any form of enter taining and gif t -giving al together for nat ional and s imilar publ ic off ic ia ls .

Conformance to the Antimonopoly Act

1）Compliance with the Anti-monopoly ActWe observe Anti-monopoly Act And ensure fair t rade.

Security export control

1）Securi ty export controlWe observe laws and regulat ions and internal rules regarding securi ty export control , and fol lowproper procedures .

Protection of intellectual property










Our Code of Conduct



Our Code of Conduct



Our Code of Conduct



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Our Code of Conduct



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Presenta t ion meet ing for ins t i tu t iona l inves tors and

secur i t i es ana lys t s on the progress of the medium-

term consol ida ted bus iness p lan

Medium-Term Business Plan Presentat ionMater ia l

We i ssue "Repor t to Shareholders" twice a year , in

March and September . This repor t main ly ta rge ts

indiv idua l shareholders and provides an overv iew of

each bus iness segment as wel l as in t roduc t ion to

bus iness top ics .

Inves tor Rela t ions

IR Calendar

The Lates t F inanc ia l Highl ights

Logo of the

Tuvalu Soc ia l

Inves tment

Award

In March 2013, the Tuvalu-Forest Corporat ion awarded Showa Denko the "TuvaluSocial Investment Award" to honor corporat ions creat ing sustainable future ,based on select ion by individual investors . This award is a system to commendcorporat ions which showed excel lent resul ts in the "evaluat ion by individualinvestors" and the assessment of "social i ty of corporate act ivi t ies" by Tuvalu-Forest Corporat ion.We also ranked high in the evaluat ion by securi t ies analysts for the select ion ofAwards for Excel lence in Corporate Disclosure (FY2012) awarded by TheSecuri t ies Analysts Associat ion of Japan.

Shareholders by sec tor

The component rat ios of shareholders by sector are as fol lows:36.4% for Japanese f inancial f i rms; 5 .6% for Japanese corporateent i t ies ; 25.9% for foreign corporate ent i t ies and foreignindividuals ; 30.2% for Japanese individuals . (As of December 31,2013)

Information Disclosure and IR

Basic pol icy on information disclosureCommunicat ing with shareholders and investorsTOPICS Valuat ion of our IR act ivi t ies Shareholders by sector

Showa Denko bel ieves disclosure and investor relat ions play vi ta l roles in deepening shareholder andinvestor understanding of our approach to var ious issues, including corporate management , businessact ivi t ies , and s t rategy, helping these s takeholders accurately assess our corporate value. Our informationdisclosure measures are based on the fol lowing pol ic ies:

Shareholder meetings

Showa Denko holds i ts regular general meet ing of shareholders in la te March every year . In addi t ion toinvi tat ions mailed out about three weeks before the meet ing, we publ ish related information on ourwebsi te to ensure shareholders have enough t ime to consider var ious bi l ls . In order for more shareholdersto exercise their vot ing r ights , we enable the shareholders who cannot a t tend the shareholders meet ing toexercise their votes by means of mail or the Internet .In the shareholders meet ing, as wel l as explaining the business out look and the midterm business plan, westr ive to intel l igibly respond to the quest ions from shareholders . Moreover , we provide a display space tointroduce the products and technology of our Group.

Communicating with institutional investors and shareholders

We keep domest ic inst i tut ional investors , analysts , and other market par t ic ipants informed in var iousways, including meet ings to explain annual and semiannual f inancial resul ts , net-conferences for resul tsannounced for the f i rs t and third quarters , and meet ings to out l ine progress with business plans.Overseas inst i tut ional investors and shareholders receive Engl ish- language vers ions of our annual resul tsand t ranscr ipts of net-conferences, and other mater ials . In addi t ion, several t imes each year , the Presidentand/or members of the management team vis i t Europe, North America and Asia to report in person onvarious issues, including Group business resul ts and future business plans. As for individual investors , wepart ic ipate in seminars for individual investors , provide explanat ions on our business and managementplans, and exhibi t products .

Provision of IR information through our website

Showa Denko t imely discloses information through the IR site for shareholders and investors on ourwebsi te , where we publ ish f inancial s ta tements , var ious explanatory meet ing mater ia ls , news releases , e tc .We also s t r ive to at ta in t imely disclosure of information to overseas or foreign nat ional investors throughthe publ icat ion of English version of f inancial s ta tements , news releases , annual reports , e tc . , on ourEnglish website .Moreover , in order for everyone including shareholders and investors to understand the business act ivi t iesof our Group, we also provide webpages to visual ly present the performance of our company, such as thehighlights of f inancial results , the main performance and f inancial indicators , e tc . , including real t imestock price of our company , on our IR information s i te .

IR Si te

Basic policy on information disclosure

We seek to communicate proact ively with shareholders and investors and to improve managementtransparency.

1.

We str ive to disclose information concerning Showa Denko in a c lear , fa i r , t imely, and accurate mannerto deepen understanding of and t rust in our company.

2.

Communicating with shareholders and investors

Valuation of our IR activities

Shareholders by sector









bus iness top ics .


IR Calendar


Logo of the

Tuvalu Soc ia l

Inves tment

Award













IR Si te



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bus iness top ics .


IR Calendar


Logo of the

Tuvalu Soc ia l

Inves tment

Award













IR Si te



1.


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bus iness top ics .


IR Calendar


Logo of the

Tuvalu Soc ia l

Inves tment

Award













IR Si te



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SRI indexes adopting Showa Denko


On February 19, 2014, Yokohama Plant and the AdvancedBattery Mater ia ls Department had a lecture on the bat tery, anexperiment to run toy cars that use bat ter ies , tes t r ide onelectr ic vehicle and other act ivi t ies for four classes of thesixth grade at Koyasu Elementary School in Yokohama.

We real ly appreciate these hands-on classes-on-demand.For example, a l though the school textbook descr ibesrechargeable bat ter ies and electr ic vehicles , i t i s diff icul t forus to prepare actual ones. As you brought them to this c lass-on-demand, kids deepened understanding on them by actual lyseeing them and r iding the EV.In addi t ion, I ’m sure that direct ly l is tening to experts wil lhelp kids select their jobs in the future . I t was real ly a goodexperience for them.(Mr. Hitomi, Koyasu Elementary School , Yokohama City)

Headquarters2On August 3 and 4, 2013, wemade a presentat ion at achemical experiment eventtarget ing elementary and juniorhigh s tudents held at theScience Museum (Kitanomaru,Tokyo), "Dream and Chemistry21 Summer Vacat ionChemical Experiment Show forKids," and made an experimentunder the t i t le of "Wonder ofMagnet ."

Higashinagahara PlantOn November 22, 2013, wedivided 78 f i f th graders intotwo teams and had anexperiment c lass under thetheme of " three s tates ofmatter" and "generat ion of gel"for about three hours a tKawahigashigakuen ElementarySchool .

Chichibu PlantOn November 29, 2013, we hadan experiment c lass using LEDsand magnets for third graders atKagemori Elementary School .

Kitakata PlantFrom October 22 to 24, twostudents f rom Aizu TechnicalHigh School interned at theMater ia l Processing Sect ion.

Showa Aluminum CanFrom July 4 to 5 , 2013, threesecond graders f rom TochigiTechnical High School internedat the Lid Manufactur ingSect ion.

Showa Denko HD MalaysiaWe accepted a total of f iveinterns, one each from JABATNTANAGA MANUSIA, UNIKL-MSI, MALAYSIAUNIVERSITY OF SCIENCEAND TECHNOLOGY, andINSTITUT KEMAHIRANMARA SIK. They experiencedworking at our off ice and in thef ie ld .

Isesaki PlantOn Apri l 27, 2013, e ightemployees par t ic ipated in"Niragawa Cleanup Event" andcleaned up the r iver whiledeepening fr iendship with themembers of the residents 'associat ion.

Shiojiri PlantOn June 22, 2013, 37employees par t ic ipated inthe “Clean Shioj i r i” campaignto clean up the area whiletaking a walk.

Tokuyama PlantOn October 12, 2013, 10employees par t ic ipated in the"Town, Forest and WaterGather ing" and worked asforest volunteer .

Showa Denko HD YamagataOn June 9, many employeespart ic ipated in “Frui t KingdomHigashine Cherry Marathon,”which Showa Denko HDYamagata cosponsors , andsupported the competi t ion asvolunteer .

Isesaki PlantWe let "Gumma Atom," anIsesaki basebal l team forpeople with disabi l i t ies use theplayground within the premisesof Isesaki Plant as one of theirhome grounds.

We co-sponsor and part ic ipatein local fest ivals in areas whereour plants are located.

Kawasaki PlantOn June 21, 2013, we organizedvisi t to plast ic chemicalrecycl ing faci l i t ies and ameet ing to exchange views at“Corporates and ResidentsRound Table Conference”hosted by Keizai Koho Center(Japan Inst i tute for Social andEconomic Affairs) .

Showa Esterindo IndonesiaOn December 17, 2013, weorganized SEI 's Open Houseand invi ted al l the s tudents andteachers f rom a neighborhoodhigh school , "SMAN 1 PuloAmpel" to our plant .

Each workplace and aff i l ia tedcompany issues s i teinformation magazines.

Showa Denko Union atOmachi PlantOn September 20, 2013, we

donated welfare cars toOmachi-shi to express ourappreciat ion for the ci ty that le tus operate in this region for along t ime.

Showa Denko CarbonWe support Trident United Wayevery year . On September 13,

22 employees par t ic ipated in avolunteer act ivi ty a t Clay Hil lElementary School .

Our employees andcol laborat ive companies recyclealuminum cans and donate the

chari ty fund obtained throughthis act ivi ty to a var iety offaci l i t ies and organizat ions.

Local Community and Social Contribution

Social Contr ibut ion Pol ic ies Educat ionImprovement of the environment around the worksi tesPromotion of ar ts , cul ture and sportsExchange with local communit iesCommunity development and social welfare

We provided the fol lowing ar t ic les in "Our Code of Conduct and I ts Pract ical Guide," to promoteexchanges with local communit ies and contr ibut ions to society.

We wil l meet the expectat ions of local communit ies .

1)We wil l disclose accurate information on our act ivi t ies in a t imely manner to the countr ies and localcommunit ies in which we operate , so as to maintain good communicat ion and promote mutualunderstanding.2)We wil l grow with the countr ies and local communit ies in which we operate , and contr ibute to theirsocial and economic growth.

2013 Resul ts of our local and social contr ibut ion act ivi t ies

Detai ls of the act ivi t ies Number of s i tes Resul ts

Educat ion

Dispatchedemployees asinstructors

12

33 cases;Dispatched1,465 man-hours

Accepted interns . 18

55 eventsimplemented;Accepted122 interns.

Improvement ofthe environmentaround theworksi tes

Cleaning act ivi t ies 31

Conductedfor 91,009hours intotal .

Promotion of ar ts ,cul ture and sports

Cooperat ion for andgrant ing subsidies toar ts , cul ture andsports

30Spent207,936,000yen.

Exchange withlocal communit ies

Holding events 288,545residentspart ic ipated.

Faci l i t ies rented 18

Rentedfor12,499hours intotal .

Offer ing guided planttours

35

8,760residentsvis i tedplants .

Communitydevelopment andsocial welfare

Harmonizing withlocal economy

24Spent5,057,000yen.

Aluminum canrecycl ing act ivi t ies

21Earned1,830,000yen.

Collaborat ing withNPOs and localorganizat ions

8Spent252,000 yen.

The Showa Denko Group is act ively engaged in educat ional act ivi t ies such as classes-on-demand at localelementary and junior high schools , plant vis i t open to s tudents up to universi ty and internship to deepenunderstanding and interest on chemistry.

Class-on-demand

Past Record Lis t

Comment from the teacher in charge

Acceptance of internships

Past Record Lis t

The Showa Denko Group cares about and cleans up the environment around our plants in cooperat ion withlocal residents and local municipal i t ies .

Past Record Lis t

Our Group supports the promotion of ar ts , cul ture and sports .

We issue local magazines to introduce our act ivi t ies a t worksi tes , organize plant vis i t events invi t ingneighbors and perform other act ivi t ies for communicat ion with local communit ies .

The Showa Denko Group contr ibutes to development of local economy, for example, by part ic ipat ing inand cooperat ing for events , urban planning and town creat ion act ivi t ies , providing small and mid-sizedcompanies with technological advice and support , employing local residents , and procuring local goodsand mater ials . We also contr ibute to local community through welfare-related and other act ivi t ies .

Social contribution policies

Education

Laboratory Class at Koyasu Elementary School in Yokohama(Yokohama Plant and Advanced Battery Materials Department)

Improvement of the environment around the worksites

Promotion of arts, culture and sports

Exchange with local communities

Community development and social welfare































Educat ion


12









30Spent207,936,000yen.






35








8Spent252,000 yen.


Class-on-demand

Past Record Lis t



Past Record Lis t


Past Record Lis t





Education






































Educat ion


12









30Spent207,936,000yen.






35








8Spent252,000 yen.


Class-on-demand

Past Record Lis t



Past Record Lis t


Past Record Lis t





Education






■ 2013 Results of our local and social contribution activities

Details of the activities Number of sites Results

Education

Dispatched employees asinstructors

12


Accepted interns. 1855 events implemented;Accepted 122 interns.

Improvement of theenvironment aroundthe worksites

Cleaning activities 31Conducted for 91,009 hours in total.

Promotion of arts,culture and sports

Cooperation for andgranting subsidies to arts,culture and sports

30Spent 207,936,000 yen.

Exchange with localcommunities

Holding events 288,545 residents participated.

Facilities rented 18Rented for 12,499 hours in total.

Offering guided plant tours 358,760 residents visited plants.


Harmonizing with localeconomy

24 Spent 5,057,000 yen.

Aluminum can recyclingactivities

21 Earned 1,830,000 yen.

Collaborating with NPOsand local organizations

8 Spent 252,000 yen.































Educat ion


12









30Spent207,936,000yen.






35








8Spent252,000 yen.


Class-on-demand

Past Record Lis t



Past Record Lis t


Past Record Lis t





Education





































Educat ion


12









30Spent207,936,000yen.






35








8Spent252,000 yen.


Class-on-demand

Past Record Lis t



Past Record Lis t


Past Record Lis t





Education






SHOWA DENKO CSR Report 2014 78Global Respons ib le Care Ver i f ica t ion

Cer t i f ica te

Showa Denko establ ished the "Responsible Care Act ionGuidel ines" in March 1995. These guidel ines s t ipulatemanagement pol icies related to the environment , safety, andheal th .Our Group promotes act ivi t ies based on these act ion guidel ines .In addi t ion, we have also s igned the "Responsible Care GlobalCharter" in 2005 and declared our support and implementat ionof the charter .

Respons ib le Care seminar for new manufac tur ing

sec t ion managers and o thers (November 2013 ,

Yokohama Plan t )

Seminar to t ra in in te rna l audi tors in the Occupat iona l

Safe ty & Heal th Management Sys tem (Augus t 2013 ,

Headquar te rs )

Responsible Care Management

Responsible Care Act ion Guidel ines Responsible Care Act ion Guidel inesResponsible Care promotion system The PDCA cycle Educat ion system

Responsible Care Action Guidelines(Showa Denko Group Action Guidelines)

As of Apri l 2014, we are promoting Responsible Care at our headquarters , 13 business divis ions, 15workplaces , 3 branches, the Business Development Center and 15 Group major companies .At overseas group companies (manufactur ing) as wel l , we have ident i f ied achievements re la t ing toResponsible Care and provided local guidance to expand the target scope.The Responsible Care Promotion Counci l is placed under the CSR Committee to have prel iminarydel iberat ions on important issues concerning Responsible Care act ivi t ies .

Responsible Care promotion system

The Showa Denko Group works to achieve cont inuous improvement in i ts Responsible Care act ivi t iesthrough the plan-do-check-act (PDCA) cycle of formulat ing Responsible Care act ivi ty plans (plan) ,implementing these (do) , audi t ing and evaluat ing the resul ts (check) , and ref lect ing these via managementreview in the next round of object ives and act ivi ty plans (act) .In addi t ion, employees receive Responsible Care educat ion that focuses on occupat ional safety,environment preservat ion and compliance when they join the company or are promoted. In par t icular ,Responsible Care seminars that target newly appointed manufactur ing sect ion managers are held atworkplaces every year , where they perform pract ical r isk assessment exercises using actual manufactur ingsi tes and work as instruct ional mater ia ls .

The PDCA cycle

We also implement annual per iodic t ra ining seminars for internal audi tors on environmental managementsystems to nurture re levant human resources . In 2012, we s tar ted a t ra ining seminar for internal audi torson the Occupat ional Safety & Heal th Management System.

Workplaces of Showa Denko and our major group companies evaluate their own Responsible Care systemsand implementat ion s tatuses based on a checkl is t and ref lect the resul ts on their goals and act ion plans forthe next year in order to move forward with cont inuous improvement .The Environment & Safety Office of CSR Department conducts audi ts to evaluate Responsible Caresystem and i ts implementat ion s ta tus a t Showa Denko and our major group companies , and we are a lsomoving ahead with improvements . The CSR Committee del iberates these resul ts and they are ref lected onthe pol icies , goals and plans of the ent i re company and group companies .We also check on s i te how effor ts are progressing at other domest ic and overseas group companies(manufactur ing) and provide guidance. In 2013, we audi ted 29 workplaces ( including our headquarters ,branch off ices and business divis ions) , workplaces of domest ic group companies , and 4 overseas groupcompanies .

Throughout the ent i re l i fe cycle of products , we shal l make our best effor ts to review andimprove business act ivi t ies cont inuously from the view points of ensuring safety & heal th andprotect ing the environment .

1 .

We shal l make our best effor ts towards sustainable development by harmonizing our product ionact ivi t ies with the global environment , not only through convent ional approaches toenvironmental preservat ion, but a lso through promotion of changing raw mater ials , energyconservat ion, waste reduct ion and recycl ing, reduct ions in the release of chemical substances,etc .

2 .

In the development of new products and businesses and in the establ ishment , enlargement , andrenovat ion of faci l i t ies , we shal l undertake our best effor ts to ensure safety and heal th and toprotect the environment .

3 .

We shal l promote R&D and develop technologies that wil l contr ibute to the improvement ofsafety and heal th and to the protect ion of the environment . We shal l a lso promote the market ingof a l ternat ive or new products .

4 .

We shal l enrich r isk assessments and r isk management concerning the effects of the productsand mater ials we handle on safety, heal th , and the environment , and we shal l provideinformation on the safe use and handl ing of our products to our s takeholders as wel l .

5 .

In overseas business act ivi t ies , technology t ransfer , and internat ional t rading of chemicalproducts , we shal l give ful l considerat ion to ensuring safety and heal th , and protect ing theenvironment .

6 .

We shal l comply with internat ional rules , domest ic laws and regulat ions, and make our besteffor ts to cooperate with the relevant internat ional organizat ions, domest ic and foreignadministrat ive bodies , e tc .

7 .

We shal l par t ic ipate proact ively in var ious act ivi t ies related to the ensuring of safety & heal thand environmental protect ion, and make our best effor ts to communicate with society to achievebet ter understanding and t rust .

8 .

Responsible Care Action Guidelines


The PDCA cycle and education system

Auditing structure

Global Respons ib le Care Ver i f ica t ion

Cer t i f ica te




Yokohama Plan t )



Headquar te rs )







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Auditing structure

15 Major Group companies which work together

with Showa Denko in promoting Responsible Care (as of June 2014):

Tsurusaki Kyodo Doryoku K.K., Tokyo Liquefied Oxygen Co., Ltd., Showa Showa Denko Ceramics Co., Ltd.(Toyama), Shiojiri Showa Co., Ltd., Showa Denko Packaging Co., Ltd., Showa Aluminum Can Corp., Showa Denko Sakai Aluminum Co., Ltd., Showa Denko Electronics K.K., Showa Denko Kenzai K.K., Union Showa K.K., Niigata Showa K.K., Showa Aluminum Can Recycling Center, HI-PACK CO., LTD., Showa Denko Gas Products Co., Ltd., and Clean-S Showa Co., Ltd.


Responsible Care Action Plan

Environmental conservat ion Safety and Disaster Prevent ion Occupat ional heal th and safetyChemical substances safety effor ts Qual i ty Assurance

◎ :Ful ly achieved (100%) :Achieved 80% or more △ :Achieved less than 80%(Numerical data without range indicat ions apply to Showa Denko only.)

Pol icy and plansfor 2013

Resul ts andprogress in 2013

Evaluat ionPolicy and plansfor 2014

Environmental management

[Pol icy]Zero environmentalproblems

[Plans]Steadyimplementat ionandcomprehensiveawareness ofAct ive Safetyeffor ts (ut i l iz ingcheckl is ts topreventenvironmentalproblems)Planning andimplementingreduct ions inpotent ia l r isksAppropriateresponses toamendments tolaws

Target of zeroenvironmentalproblems in theShowa DenkoGroup at ta ined.Uti l izedcheckl is ts topreventenvironmentalproblems.Implementedmeasures toreduce r isks ineach plant

◎


[Plans]Steadyimplementat ion ofAct ive Safetyeffor ts (ut i l iz ingcheckl is ts topreventenvironmentalproblems)Reducingenvironmentalr isks

Global warming ini t ia t ives

[Pol icy]Continuing toimprove uni tenergyconsumption

[Plans]Creat ing energyconservat ionmeasures

Achieved thetarget to reduceuni t energyconsumptionrequired by theEnergy SavingAct . Among specif icbenchmarks, wedid not achievethe target forsoda product ionprocess .Implementedperiodic report ing


[Plans]Thorough energyconservat ion

[Pol icy]Preparing for post-Kyoto Protocol asthe Showa DenkoGroup

[Plans]Determining thereduct ion targetof each s i te for2014 and la ter

Greenhouse gasemissions: a 25%reduct ion atShowa Denko, a22% reduct ionacross ent i reShowa DenkoGroup (comparedto 1990 levels)Unit energyconsumption asdesignatedshippers in2012andreduct ion plansfor 2013 reportedto authori t ies .

◎

[Pol icy]Reduct ion in GHGand promotion ofenergyconservat iontowards thereal izat ion of alow-carbonsociety

[Plans]Implementat ion ofreduct ion planreported toauthori t ies

Reducing industr ia l waste

[Pol icy]Achieving zeroemissionsContr ibut ing to arecycl ing-basedsociety

[Plans]Reducing theamount of f inaldisposal bylandfi l l throughefforts such asmore effect ive useof s ludgeTarget : ShowaDenko only: 1 ,400t or lessShowa DenkoGroup: 1 ,600 t orless

The amount off inal disposal bylandfi l l : 1 ,087 tfor Showa Denkoonly (reduced763t f rom 2012),1 ,360 t for theent i re ShowaDenko Group(reduced 725 tfrom 2012);targets achieved

◎



[Pol icy]Contr ibut ing to arecycl ing-basedsociety

[Plans]Promotingrecycl ing

Plast ic chemical-recycl ingproduct ion: down0.4% from 2012.Paper-recycl ingrate (headoff ice) : 85% (up0.9% from 2012)Aluminum canrecycl ing: Grouppart ic ipat ion rate96.6%, with eachemployeebringing in anaverage of 158cans over a three-month period.



Reducing chemical substance

[Pol icy]Reducing chemicalemissions

[Plans]Thoroughcompliance withrevised PRTR

Emission of JCIAPRTR: 223t , 34%reduct ion from2012; targetachievedEmissions oftoxic atmosphericpol lutants:17t ,down 19% from2012; targetachieved

◎



Policy and plans for2013



Equipment safety

[Pol icy]Real iz ing equipment-incident-free s ta tus

[Plans]Thoroughlyimplementing ActiveSafety act ivi t iesUti l iz ing resul ts ofthe funct ion-specif icpersonnel meet ingsEnsuring theimplementat ion ofHRM examinat ionsPromoting voluntarysafety ini t ia t ives

Incidents: Twofires ,one leak inthe ShowaDenko Group(Compared to atotal of four in2012)Issued, spreadawareness ofand horizontal lydeployed therevised edi t ionof the equipmentincidentprevent ioncheckl is t , whichincludes theJCIA Safety andAccidentPrevent ionGuidel ines ,externalaccidentinformation andotherinformation.Tested andbrushed up guidel ines byprocess ,machinery,electr ic i ty , andinstrumentat ionat each plant .Reviewed onenew project andchecked onetr ia l run resul t .Completed theexis t ing handledsubstancesurvey and HRMapplicabi l i tydeterminat ion.Star ted shar ingand ut i l iz ingacross thecompany,examples ofsolving issues a tplants .Systematical lyperformedemergency dri l lsand internalaudi ts a t eachplant .Planned andpromotedmeasures tostrengthenearthquakeresis tance andmeasuresagainstl iquefact ion ateach plant .

[Pol icy]Real iz ingequipment-incident-freestatus

[Plans]ThoroughlyimplementingActive Safetyact ivi t iesEnsuring theimplementat ionof HRMexaminat ionsPromotingvoluntary safetyini t ia t ivesEstabl ish a r iskassessmentframework andprocedures inthenonstat ionarystate andunnsualoperat ionsMaintain andimprovemeasuresagainstear thquakes foreach piece ofequipment andfaci l i t iesMaintain andimprove PDCAat authorizedhigh-pressuregas plants , e tc .

Pol icy and plans for 2013Resul ts andprogress in2013


Occupat ional safety

[Pol icy]Zero lost- t ime and non-lost- t ime injur ies a t eachsi teEstabl ishing the s t rongestsafety management systemin the chemical industry

[Plans]Enhancing safety s t rengthof worksi tes andpersonnelAddressing equipment andprocess def ic ienciesImproving safetymanagement levelsFol lowing up on specialsafety act ivi t ies andstrengthening measures toprevent s imilar incidents

Threeincidentsresul t ing inlost- t imeinjur ies (2 in2012), and 0non-lost- t imeinjur ies (4 in2012) occurredin the ent i reShowa DenkoGroupRate ofincidentsresul t ing inlost- t imeinjur ies inShowa DenkoGroup: 0 .22(0.14 in 2012)Inst i tute forAdvanced andCoreTechnology(Toke) , andthe ShowaAluminum CanOyama,Hikone andOmuta Plantsreceivedexternal safetyawards. Isesaki Plant ,and the ShowaDenko GasProductsKawasakiPlant acquiredindustr ia lsafety andheal thmanagementsystemscert i f icat ion.A total of 16group plantsacquiredcert i f icat ion.

[Pol icy]Zero lost- t imeand non- lost-t ime injur ies a teach s i teEstabl ishingthe s t rongestsafetymanagementsystem in thechemicalindustry

[Plans]Rate of lost-t ime injur ies asthe group: 0 .1or lessEliminat ion ofdangerousequipment andworkMaintenanceandimprovement ofsafetysensi t ivi tyIncrease inplants thatacquireindustr ia l safetyand heal thmanagementsystemcert i f icat ion

Occupat ional heal th

[Pol icy]Zero work-related i l lnesses

[Plans]Enhancing sani tat ionmanagement s t ructureImproving workenvironment and workmethods

Zero work-relatedi l lnesses

◎


[Plans]Enhancingsani ta t ionmanagementstructureImproving workenvironmentand workmethods

Heal th management

[Pol icy]Promoting "Showa DenkoGroup Vivid Heal thPromotion Plan" act ivi t ies[Plans]・Targets

"Showa DenkoGroup VividHeal thPromotion Plan"act ivi ty resul ts(compared withthe previousyear)

[Pol icy]Maintain andpromote themental andphysical heal thof employees

[Plans]Object ivesShowa DenkoGroup VividHeal thPromotion Plan

Policy and plansfor 2013



Chemical substance management

[Pol icy]Appropriateresponse torevis ions indomest ic andoverseas laws

[Plans]Comprehensiveimplementat ion ofcompliance,educat ion, andmanagementstructures Col lect ion,evaluat ion anddisseminat ion ofchemicalsubstance safetyinformation

Establ ished thecomprehensivechemicalsmanagementsystem (Creat ionof SDS, SDS/JIPSsafety summarysheets , e tc . )Registeredchemicalsubstancessubject to 2013regis t ra t ionprogram underREACHregulat ions

◎

[Pol icy]Nomismanagement

[Plans]Enrichingeducat ion in lawsand safetyconcerningchemicalsubstancesEnriching r iskassessmentComplet ingrevis ion of a l lproducts ' SDS toconform to GHSAppropriateresponse tooverseas laws andregulat ions


Resul ts and progressin 2013


Qual i ty assurance

[Pol icy]Makingproducts thatoffer totalsafety in useNo productaccidents , nomajorcomplaints

[Plans]Performingappropriateproduct r iskassessmentsImplementingeffect iveprevent ivemeasures(processcapabi l i tyqual i tyassurance)

Product re leasereviews s tar ted inJuly 2012 have takenroot . The number ofproducts reviewed in2013 was 14. Thenumber of productaccidents remain atzero as a resul t ofthe enhancing ofmult idiscipl inaryrisk assessments .Checked r iskassessmentimplementat ionstatus f rom the fourviewpoints ofunderstanding customerrequirements ,process capabi l i ty ,product accidentoccurrence/defect iveproduct shipmentprevent ion measures ,and specif icat ionchange management .Checked processcapabi l i ty ofspecif ied products .There were noproblems.

◎

[Pol icy]Making productsthat offer totalsafety in useNo productaccidents , nomajorcomplaints

[Plans]Performingappropriateproduct r iskassessments(Revision ofmarket ingprocedures)Implementingeffect iveprevent ivemeasures(processcapabi l i tyqual i tyassurance)

*1 HRM:High Risk Mater ia l*2 work-related i l lnesses:Legal ly recognized work-related s ickness by the Workers ' Compensat ion

Insurance Law.Appearing symptoms of i l lness caused by exposure to harmful factors under c i rcumstancesof employers ' control .*3 SDS(Safety Data Sheet) :This is a document provided by the suppl ier to the user (customer) of achemical substance, covering such matters as i ts name, toxici ty , and physical /chemical propert ies;caut ions concerning i ts handl ing and s torage; and emergency measures .*4 JIPS(Japan Ini t ia t ive of Product Stewardship):The new voluntary chemical management ini t ia t ive byJCIA to enhance r isk assessment and r isk management with considerat ion for supply chain.*5 REACH:EU Regulat ion on Regist ra t ion, Evaluat ion, Authorizat ion, and Restr ic t ion of Chemicals*6 GHS:Global ly Harmonized System of Classif icat ion and Label l ing of Chemicals

Environmental conservation

Safety and disaster prevention

Occupational health and safety

Prevent ing l i fes tyle-relateddiseaseshypertension,abnormal fatlevels , diabetes ,cancer)

1）(

Improving mentalheal thcare

2）

Improving l i festyles(opt imal weight ,exercise habi ts , res t ,smoking, dr inking,etc . )

3）

Steadi ly implementingmedical examinat ionsand fol low up

4）

Prevent ion ofl i festyle-relateddiseases: Theprevalencerate ofabnormalf indingsremainedunchanged.

1）

The rate ofmental lyhigh r iskpeopledecreased.

2）

Theprevalencerate ofhypertension,abnormal fatlevels ,diabetes andopt imalweightremainedunchanged.

3）

The fol low-up rate fa i ledto reach100%.

4）

Prevent ingl i festyle-relateddiseases

1）

Improvingmentalheal thcare

2）

Improvingl i festyles

3）

Steadi lyimplementingmedicalexaminat ionsand fol low-up

4）

Chemical substance safety

Quality assurance











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Qual i ty assurance




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Results and progressin 2013

EvaluationPolicy and plans for2014


[Policy]Zero environmentalproblems

[Plans]Steadyimplementation andcomprehensiveawareness of ActiveSafety efforts(utilizing checkliststo preventenvironmentalproblems)Planning andimplementingreductions inpotential risksAppropriateresponses toamendments to laws

Target of zeroenvironmentalproblems in theShowa Denko Groupattained.Utilized checklists topreventenvironmentalproblems.Implementedmeasures to reducerisks in each plant

◎


[Plans]Steadyimplementation ofActive Safety efforts(utilizing checklists toprevent environmentalproblems)Reducingenvironmental risks

Global warming initiatives

[Policy]Continuing to improveunit energyconsumption

[Plans]Creating energyconservationmeasures

Achieved the targetto reduce unit energyconsumption requiredby the Energy SavingAct. Among specificbenchmarks, we didnot achieve the targetfor soda productionprocess.Implemented periodicreporting

○


[Plans]Thorough energyconservation

[Policy]Preparing for post-Kyoto Protocol as theShowa Denko Group

[Plans]Determining thereduction target ofeach site for 2014and later

Greenhouse gasemissions: a 25%reduction at ShowaDenko, a 22%reduction acrossentire Showa DenkoGroup (compared to1990 levels)Unit energyconsumption asdesignated shippersin 2012and reductionplans for 2013reported toauthorities.

◎

[Policy]Reduction in GHG andpromotion of energyconservation towardsthe realization of alow-carbon society

[Plans]Implementation ofreduction planreported toauthorities

Reducing industrial waste

[Policy]Achieving zeroemissionsContributing to arecycling -basedsociety

[Plans]Reducing the amountof final disposal bylandfill throughefforts such as moreeffective use ofsludgeTarget: Showa Denkoonly: 1,400 t or lessShowa Denko Group:1,600 t or less

The amount of finaldisposal by landfill:1,087 t for ShowaDenko only (reduced763t from 2012),1,360 t for the entireShowa Denko Group(reduced 725 t from2012); targetsachieved

◎



[Policy]Contributing to arecycling -basedsociety

[Plans]Promoting recycling

Plastic chemical -recycling production:down 0.4% from2012.Paper-recycling rate(head office): 85% (up0.9% from 2012)Aluminum canrecycling: Groupparticipation rate96.6%, with eachemployee bringing inan average of 158cans over a three-month period.

○




[Policy]Reducing chemicalemissions

[Plans]Thorough compliancewith revised PRTR

Emission of JCIAPRTR: 223t, 34%reduction from 2012;target achievedEmissions of toxicatmosphericpollutants:17t, down19% from 2012;target achieved

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Equipment safety

[Policy]Realizing equipment-incident-free status

[Plans]Thoroughlyimplementing ActiveSafety activitiesUtilizing results of thefunction-specificpersonnel meetingsEnsuring theimplementation of HRMexaminationsPromoting voluntarysafety initiatives

Incidents: Twofires,one leak in theShowa Denko Group(Compared to a totalof four in 2012)Issued, spreadawareness of andhorizontally deployedthe revised edition ofthe equipmentincident preventionchecklist, whichincludes the JCIASafety and AccidentPreventionGuidelines, externalaccident informationand otherinformation.Tested and brushedup guidelines byprocess, machinery,electricity, andinstrumentation ateach plant.Reviewed one newproject and checkedone trial run result.Completed theexisting handledsubstance survey andHRM applicabilitydetermination.Started sharing andutilizing across thecompany, examplesof solving issues atplants.Systematicallyperformed emergencydrills and internalaudits at each plant.Planned andpromoted measuresto strengthenearthquakeresistance andmeasures againstliquefaction at eachplant.

○

[Policy]Realizingequipment-incident-free status

[Plans]Thoroughlyimplementing ActiveSafety activitiesEnsuring theimplementation ofHRM examinationsPromoting voluntarysafety initiativesEstablish a riskassessmentframework andprocedures in thenonstationarystate and unnsualoperationsMaintain andimprove measuresagainst earthquakesfor each piece ofequipment andfacilitiesMaintain andimprove PDCA atauthorized high-pressure gas plants,etc.












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Policy and plans for 2013Results and progressin 2013


Occupational safety

[Policy]Zero lost-time and non-lost-time injuries at eachsiteEstablishing thestrongest safetymanagement system inthe chemical industry

[Plans]Enhancing safetystrength of worksites andpersonnelAddressing equipmentand process deficienciesImproving safetymanagement levelsFollowing up on specialsafety activities andstrengthening measuresto prevent similarincidents

Three incidentsresulting in lost-time injuries (2 in2012), and 0 non-lost-time injuries(4 in 2012)occurred in theentire Showa DenkoGroupRate of incidentsresulting in lost-time injuries inShowa DenkoGroup: 0.22 (0.14in 2012)Institute forAdvanced and CoreTechnology (Toke),and the ShowaAluminum CanOyama, Hikone andOmuta Plantsreceived externalsafety awards. Isesaki Plant, andthe Showa DenkoGas ProductsKawasaki Plantacquired industrialsafety and healthmanagementsystemscertification. Atotal of 16 groupplants acquiredcertification.

○

[Policy]Zero lost-time andnon- lost-timeinjuries at each siteEstablishing the strongest safetymanagement systemin the chemicalindustry

[Plans]Rate of lost-timeinjuries as thegroup: 0.1 or lessElimination ofdangerousequipment and workMaintenance andimprovement ofsafety sensitivityIncrease in plantsthat acquireindustrial safety andhealth managementsystem certification

Occupational health

[Policy]Zero work-relatedillnesses

[Plans]Enhancing sanitationmanagement structureImproving workenvironment and workmethods

Zero work-relatedillnesses

◎


[Plans]Enhancing sanitationmanagementstructureImproving workenvironment andwork methods

Health management

[Policy]Promoting "Showa DenkoGroup Vivid HealthPromotion Plan" activities[Plans]・Targets

"Showa Denko GroupVivid HealthPromotion Plan"activity results(compared with theprevious year)

○

[Policy]Maintain and promotethe mental andphysical health ofemployees

[Plans]ObjectivesShowa Denko GroupVivid HealthPromotion Plan

Preventing lifestyle -relateddiseaseshypertension,abnormal fatlevels, diabetes,cancer)

1）

Improving mentalhealthcare

2）

Improving lifestyles(optimal weight,exercise habits, rest,smoking, drinking,etc.)

3）

Steadily implementingmedical examinationsand follow up

4）

Prevention oflifestyle -relateddiseases: Theprevalence rate ofabnormal findingsremainedunchanged.

1）

The rate ofmentally high riskpeople decreased.

2）

The prevalencerate ofhypertension,abnormal fatlevels, diabetesand optimalweight remainedunchanged.

3）

The follow-uprate failed toreach 100%.

4）

Preventinglifestyle -relateddiseases

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Improvinglifestyles

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Steadilyimplementingmedicalexaminations andfollow-up

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Occupational safety




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[Policy]Appropriate responseto revisions indomestic andoverseas laws

[Plans]Comprehensiveimplementation ofcompliance,education, andmanagementstructures Collection,evaluation anddissemination ofchemical substancesafety information

Established thecomprehensivechemicalsmanagement system(Creation of SDS,SDS/ JIPS safetysummary sheets, etc.)Registered chemicalsubstances subject to2013 registrationprogram underREACH regulations

◎

[Policy]No mismanagement

[Plans]Enriching education inlaws and safetyconcerning chemicalsubstancesEnriching riskassessmentCompleting revisionof all products' SDS toconform to GHSAppropriate responseto overseas laws andregulations


HRM:High Risk Material

work-related illnesses:Legally recognized work-related sickness by the Workers' Compensation Insurance Law.Appearing symptoms of illness caused by exposure to harmful factors under circumstances of employers' control.

SDS(Safety Data Sheet):This is a document provided by the supplier to the user (customer) of a chemical substance, covering such matters as its name, toxicity, and physical/chemical properties; cautions concerning its handling and storage; and emergency measures.

JIPS(Japan Initiative of Product Stewardship):The new voluntary chemical management initiative by JCIA to enhance risk assessment and risk management with consideration for supply chain.

REACH:EU Regulation on Registration, Evaluation, Authorization, and Restriction of Chemicals

GHS:Globally Harmonized System of Classification and Labelling of Chemicals











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◎












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Equipment safety


















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Heal th management












◎






Qual i ty assurance




◎









1）(


2）


3）


4）


1）


2）


3）


4）


1）


2）


3）


4）


Quality assurance


Results and progress in2013


Quality assurance

[Policy]Making productsthat offer totalsafety in useNo productaccidents, no majorcomplaints

[Plans]Performingappropriate productrisk assessmentsImplementingeffective preventivemeasures (processcapability qualityassurance)

Product release reviewsstarted in July 2012have taken root. Thenumber of productsreviewed in 2013 was14. The number ofproduct accidentsremain at zero as aresult of the enhancingof multidisciplinary riskassessments.Checked riskassessmentimplementation statusfrom the fourviewpoints ofunderstanding customer requirements,process capability,product accidentoccurrence/defectiveproduct shipmentprevention measures,and specificationchange management.Checked processcapability of specifiedproducts. There wereno problems.

◎

[Policy]Making products thatoffer total safety inuseNo productaccidents, no majorcomplaints

[Plans]Performingappropriate productrisk assessments(Revision ofmarketingprocedures)Implementingeffective preventivemeasures (processcapability qualityassurance)


Resource Use and Environmental Impact


Plans for 2013

[Pol icy]

Cont inuing to improve uni t

energy consumpt ion

repar ing for pos t -Kyoto

Protocol as the Showa

Denko Group

[Plans]

Crea t ing energy

conserva t ion measures

Determining the reduc t ion

ta rge t of each s i te for 2014

and la te r

Achievements in 2013

Achieved the target toreduce uni t energyconsumption required by theEnergy Saving Act . Among specif icbenchmarks, we did notachieve the target for sodaproduct ion process .Implementat ion of per iodicreport ingGreenhouse gas emissions :a 25% reduct ion at ShowaDenko, a 22% reduct ionacross ent i re Showa DenkoGroup (compared to 1990levels)Unit energy consumption asdesignated shippers in 2012and reduct ion plans for2013 reported toauthori t ies .

Plans for 2014

[Pol icy]

Cont inu ing to improve uni t

energy consumpt ion

Reduct ion in GHG and

promot ion of energy

conserva t ion towards the

rea l iza t ion of a low-carbon

soc ie ty

[Plans]

Thorough energy

conserva t ion

Implementa t ion o f

reduc t ion p lan repor ted to

author i t i es

Trends in discharged amounts of greenhousegases and target f igures (Showa Denko Group)

Power use rates by source (FY 2013)

Tohoku Ammonia Center

Showa Denko K.K. is working to reduce i ts environmenta limpact by improving t ransportat ion eff ic iency and by promotinga modal shif t throughout i ts supply chain, f rom the procuremen tof mater ia ls , through product ion and sales , to del ivery.In f iscal 2013, the uni t energy consumption of our supply chainwas improved 1.5% from that of the previous f iscal year . Thi simprovement was a resul t of increased t ransportat ion by sea .In Apri l 2014, operat ions were restar ted at the l iquefiedammonia dist r ibut ion center (Soma County, FukushimaPrefecture) , which was hi t by the tsunami caused by the Grea tEast Japan Earthquake. Transportat ion of l iquefied ammonia t ocustomers in the Tohoku region from the Kawasaki Plant is nowmade by ships instead of tanker t rucks. This is expected toimprove the uni t energy consumption of the t ransportat ion o fl iquefied ammonia in and af ter FY 2014 .

Transportat ion sector 's CO 2 emissions andenergy consumption rate

Freight ton-km

Trend of e lectr ic power used at the HeadOffice bui lding

Facil i t ies-relatedChanged to energy-saving type ai r condi t ionersRoom air temperature is set a t 28 degrees Cels ius bythe air-condit ioners , l imit ing hours of use .Light ings are thinned out as much as possible al l -year round.Changed to LED l ight ingHot water supply is suspended in the off ice ki tchensand toi le ts .Lights are turned off in spaces where l ight ing i sunnecessary, and during lunch t ime.Energy-saving mode of personal computers andprinters should be used.Standby power requirement should be cut . (Unplugcables or shut off the main switch. )Operat ions of some elevators are suspended .Use of coffee brewers and electr ic pots is prohibi ted .Use of copy machines should be l imited to theminimum level required.

Work-relatedWork af ter 19:15 hours is prohibi ted, in pr inciple .Period for "Cool Biz" campaign is extended. (FromMay to the end of October)

Global Warming Prevention Measures

The Showa Denko Group promotes energy conservat ion measures such as review and opt imizat ion o fproduct ion processes and modif icat ion of faci l i t ies from the viewpoints of global warming prevent ion andresource conservat ion.In FY2013, our GHG emission was 2,645 kt-CO 2 -equivalent (an increase of 149 kt-CO 2 -e from theprevious year) , and among that amount , our GHG emission or iginat ing from our energy consumption was2,484 kt -CO 2 -e (an increase of 169 kt-CO 2 -e from the previous year) . These increases were caused mainlyby the increase in our product ion volumes and a worsening of the GHG emission coeff ic ient of purchasedelectr ic i ty .In addi t ion, our Group owns and operates hydroelectr ic power s ta t ions in four plants . They are ut i l ized togenerate c lean energy. We generate 19% of a l l e lectr ic i ty used by our group through hydroelectr ic powergenerat ion. This reduces about 150 kt -CO 2 -e GHG emission a year compared with purchased electr ic i ty .

Showa Denko Electronics

Showa Denko Electronics K.K. , which produces hard disks, s tar ted thorough power-saving effor ts i n2011 to address the power shortage af ter the Great East Japan Earthquake and cont inued these effor tsin FY 2013.In this act ivi ty , we visual ized the whole power consumption by calculat ing each process and ut i l i tyequipment in terms of e lectr ic i ty consumption at the ini t ia l phrase, determined priori t ies based on th edata , and planned and implemented energy conservat ion measures .In FY 2013, we implemented the free cool ing system* to reduce the power consumption of a i rcondi t ioning system in the clean room, improved the operat ion eff ic iency of a ir compressor , wate rpurif icat ion equipment and other power usage faci l i t ies , replaced l ight ing with LEDs, and took othermeasures .

The annual power consumption in FY 2013 was about 77% of that in 2010. We are cont inuousl ytrying to fur ther reduce power consumption in FY 2014. In addi t ion, we plan to share these energy -saving act ivi t ies across the plants in the Showa Denko Group and expand the range of act ivi t ies .

*The free cool ing system produces cold water used to cool down air condi t ioning systems andproduct ion equipment by only using the cool ing tower in winter and cool per iods when the outs ide ai rtemperature is low. This system can save energy by producing cool water without having to use th erefr igerator .

Annual power consumption in Showa Denko Electronics Compared with FY 2010

C-LCA (carbon-Life Cycle Analysis) is a methodology to assess the CO 2 emissions in the tota ll i fecycle of products from the t ime their raw materials are taken, they are manufactured, dis t r ibuted ,used up, to the t ime they are abandoned. Showa Denko has s tar ted quant i f icat ion of i ts contr ibut ionto the reduct ion in CO 2 emissions generated from the use of our chemical products by comparing theCO 2 emissions in the product ion processes of our chemical products as wel l as in the use of thoseproducts , with the CO 2 emissions in the use of a l ternat ive products in the assumption that thosechemical products did not exis t .From the perspect ives of total opt imizat ion across the product l i fecycles , not to ment ion th ereduct ion in CO 2 emission in the manufactur ing processes of chemical products , we wil l focus on thecontr ibut ion to the reduct ion in CO 2 emissions of our ent i re community generated from the use ofchemical technologies and chemical products by applying this methodology .

To reduce environment impact associated with logist ics , we are moving ahead with a “modal shif t” b yusing rai l and ship t ransport instead of t rucks to reduce CO2 emi ssions. In FY 2013, we gradual lyswitched some t ruck t ransports to ships t ransports for t ransport ing some products manufactured at th eOmachi Plant f rom Nagano to Kyushu .In FY 2013, the freight ton-km by rai l and ship t ransport in Japan was approximately 339 mil l ion ton-kmwhich corresponds to approximately two-thirds of our total f re ight ton-km in Japan .In addi t ion to the modal shif t , we are improving t ransportat ion eff ic iency by increasing the s ize ofdel ivery lots , improving the loading rat io of t rucks and containers , and reducing t ransport dis tances. Incooperat ion with t ransport companies, we are s t r iving to reduce energy consumption by adopting lo wemission vehicles , digi ta l tachographs, and eco-fr iendly t i res , in addi t ion to encouraging eco-fr iendl ydriving.

FY2013 rat ios for use of var ious modes of t ransport

Using the t ight e lectr ic power condi t ions af ter the ear thquake disaster as an opportuni ty, we hav eimplemented thorough energy saving measures even in the off ice bui ldings. As a resul t of performing th efol lowing measures , the elect r ic energy used in the headquarters bui lding in FY 2013 was reduced by 26%compared to FY 2010.

Power-saving measures at the Head Office

Promoting energy conservation

Measures to reduce energy consumption

Measures for c-LCA

Reducing environmental impact through supply chain management (SCM)

Promotion of modal shift and other efforts

Promoting energy saving in office


Plans for 2013

[Pol icy]


energy consumpt ion



Denko Group

[Plans]

Crea t ing energy




and la te r



Plans for 2014

[Pol icy]


energy consumpt ion





soc ie ty

[Plans]

Thorough energy

conserva t ion



author i t i es






Freight ton-km











C-LCA (carbon-Life Cycle Analysis) is a methodology to assess the CO 2 emissions in the tota ll i fecycle of products from the t ime their raw materials are taken, they are manufactured, dis t r ibuted ,used up, to the t ime they are abandoned. Showa Denko has s tar ted quant i f icat ion of i ts contr ibut ionto the reduct ion in CO 2 emissions generated from the use of our chemical products by comparing theCO 2 emissions in the product ion processes of our chemical products as wel l as in the use of thoseproducts , with the CO 2 emissions in the use of a l ternat ive products in the assumption that thosechemical products did not exist .From the perspect ives of total opt imizat ion across the product l i fecycles , not to ment ion th ereduct ion in CO 2 emission in the manufactur ing processes of chemical products , we wil l focus on thecontr ibut ion to the reduct ion in CO 2 emissions of our ent i re community generated from the use ofchemical technologies and chemical products by applying this methodology .







Measures for c-LCA





Plans for 2013

[Pol icy]


energy consumpt ion



Denko Group

[Plans]

Crea t ing energy




and la te r



Plans for 2014

[Pol icy]


energy consumpt ion





soc ie ty

[Plans]

Thorough energy

conserva t ion



author i t i es






Freight ton-km


















Measures for c-LCA





Plans for 2013

[Pol icy]

Achiev ing zero emiss ions

Cont r ibu t ing to a

recyc l ing-based soc ie ty

[Plans]

Reducing the amount of

f ina l d i sposa l by landf i l l

th rough ef for t s such as

more e f fec t ive use of

s ludge

Targe t : Showa Denko only :

1 ,400 t o r l ess , Showa

Denko Group: 1 ,600 t o r

less

Promot ing recyc l ing .


The amount of f ina l

d isposa l by landf i l l : 1 ,087

t for Showa Denko only

( reduced 763t f rom 2012) ,

1 ,360 t fo r the en t i re

Showa Denko Group

(reduced 725 t f rom 2012) ;

ta rge ts achieved .

Plans for 2014

[Pol icy]




[Plans]





s ludge




less


Reducing Industrial Waste

Reducing industr ia l waste and encouraging recycl ing PCB control

The Showa Denko Group is reducing, reusing and effect ively using waste through the fol lowing act ivi t iesto reduce the amount of industr ia l waste disposed.

Reuse of waste acids and waste a lkal isUse of waste oi l and waste plast ics as fuels (heat recovery)Effect ive use of inorganic s ludge (e .g. , in cement)

The f inal landfi l l volumes of industr ia l waste for FY 2013 was 1,087 tons for Showa Denko only and 273tons for the rest of Group companies , and 1,360 tons in total , which is a year-on-year decrease of 725tons, and achieved the Group target (1 ,600 tons or less) . In FY 2014, we have set the Group target a t 1 ,300tons or less to increase the number of worksi tes capable of achieving the reduct ion in landfi l l wastevolume and zero-emission . In addi t ion, Showa Denko is current ly assessing contractors for intermediateprocessing and f inal disposal to ensure appropriate processing and disposal of waste generated from us.With respect to the discharge of bauxi te residue residue into the sea, the Company in FY 2013 maintainedthe volume of this discharge at 21% below f iscal 2000 levels . The discharge into the sea wil l beterminated by 2015.

Trends of the f inal landfi l l volumes of industr ia l waste

At Toyama Plant , Showa Denko Ceramics set the TPM act ivi ty target to achieve zero emission, whichmeans the percentage of landfi l led industr ia l waste in the generated waste is 1% or less , and s tar tedeffor ts to at ta in the goal in 2002.They s ignif icant ly reduced s ludge generated in the oxidized t i tanium process , which ini t ia l lyaccounted for 80% of landfi l led industr ia l waste , by improving the s ludge precipi ta t ion tank anddehydrator , and succeeded in effect ively using i t as soi l improvement agent . They also promotedrecycl ing of waste plast ic and other mater ia ls and achieved zero emissions in 2008. Then, theysucceeded in recycl ing waste vinyl chlor ide plast ic and achieved zero landfi l led industr ia l waste in2011.Their effor ts and accomplishments were appreciated and they received the RC OutstandingPerformance Award at the 8th JCIA Annual Responsible Care Award in May 2014.

Transi t ion of percentage of landfi l led waste

Based on i ts PCB control checkl is t , Showa Denko K.K. regular ly checks the s ta tus of s toredpolychlorinated biphenyl (PCB) waste . This waste is appropriately s tored in sui table faci l i t ies to preventleaks. Addit ional ly, each worksi te submits an annual report on the s tatus of s tored PCB waste and relatedmatters to the prefectural governor , as required under the Law Concerning Special Measures against PCBWaste.Taking ful l advantage of the waste processing faci l i t ies of Japan Environmental Safety Corporat ion etc . ,we are cont inuing systematic disposal of PCB waste .


Toyama Plant, Showa Denko Ceramics achieved zero landfilldisposal of industrial waste.

PCB control

Plans for 2013

[Pol icy]




[Plans]





s ludge




less








Showa Denko Group



Plans for 2014

[Pol icy]




[Plans]





s ludge




less













PCB control


Plans for 2013

[Pol icy]




[Plans]





s ludge




less








Showa Denko Group



Plans for 2014

[Pol icy]




[Plans]





s ludge




less













PCB control

zero-emission:A concept, now a goal throughout society, to eliminate the generation of various waste substances by reusing materials rather than processing them as waste. Proposed by the United Nations University in 1994, this concept seeks to realize a recycling-based society by

reducing to zero the level of emissions into the environment through the most efficient resource and energy use possible.

bauxite residue:Unwanted substance remaining after alumina is extracted from bauxite ore during the alumina production process.

PCB:PCB (Polychlorinated biphenyl) is a material with high electrical insulation and chemical resistance. It was used in wide-ranging applications, including insulating oil for electrical appliances, paints, and carbonless copy paper. Due to its carcinogenicity and other problems, however, the manufacture, import, and use of PCB are now prohibited.


Plans for 2013

[Pol icy]

Reducing chemica l

emiss ions

[Plans]

Thorough compl iance wi th

rev ised PRTR


Emiss ion of JCIA PRTR:

223t , 34% reduc t ion f rom

2012; ta rge t ach ieved

Emiss ions of tox ic

a tmospher ic po l lu tan ts :17t ,

down 19% f rom 2012;

ta rge t ach ieved

Plans for 2014

[Pol icy]

Reducing chemica l

emiss ions

[Plans]

Thorough compl iance wi th

rev ised PRTR

PRTR-l is ted substances re leased andtransferred (Showa Denko K.K. only)

Release of PRTR-l is ted substances (ShowaDenko K.K. only)

Reducing Chemical Substance Discharge

As a member of the Japan Chemical Industry Associat ion (JCIA), Showa Denko s ince 1996 has voluntar i lyundertaken surveys of the volumes of chemical substances i t has discharged and t ransported. In 2013, theCompany performed a survey of 590 substances, including substances subjected to the PRTR Law,submit t ing a report to the JCIA on 132 substances (of which 97 were subject to the PRTR Law). Totalemissions of PRTR l is ted substances were approximately 223 tons, approximately 113t tons lower than theprevious f iscal year .Showa Denko wil l cont inue to make focused effor ts to reduce discharge volumes by preparing reduct ionplans for each s i te for PRTR-l is ted substances and for substances with high annual discharge volumes.The Company is current ly seeking to ascer tain and assess potent ial impact in areas surrounding i ts s i tesand improve communicat ion with local communit ies and governments concerning r isks as i t works toreduce discharge volumes.

Reducing chemical substance discharge


People c lean ing up the wet land

Employees at Oyama Plant par t ic ipate in the "WataraseFlood Control Basin Cleaning Campaign" hosted by theTonegawa Headwater Stream User Counci l to preserve theenvironment of Watarase Flood Control Basin.Watarase Flood Control Basin is the largest wet land inHonshu and southward with a total area of 3300 ha, whichwas inscr ibed as a regis tered wet lands under the RamsarConvent ion on July 3, 2012.We wil l cont inue to cooperate with local communit ies toconduct business l iving together with this r ich naturalenvironment .

Biodiversity Efforts

Basic concept Future effor ts

I t is necessary to ensure biodiversi ty and preserve the ecosystem to maintain the sustainable globalenvironment in the future. In 2013, Showa Denko decided to take part in “Japan Business and Biodiversi tyPartnership*,” endorsing the object ive of the Act ion Pol ic ies to Pr ivate Sector Engagement inBiodiversi ty . The Showa Denko Group, taking this Act ion Pol ic ies into account , wil l assess the effects ofour business act ivi t ies on biodiversi ty and make our business act ivi t ies more biodiversi ty conscious ones.

*Japan Business and Biodiversi ty Partnership: A private sector biodiversi ty ini t ia t ive joint ly founded byNippon Keidanren (Japan Business Federat ion) , Japan Chamber of Commerce and Industry and KeizaiDoyukai (Japan Associat ion of Corporate Execut ives) . The object ive of this par tnership is to have a widerange of companies , regardless of industry and s ize , part ic ipate in this par tnership and voluntar i ly engagein effor ts to contr ibute to biodiversi ty to achieve the object ives of the Convention on Biodiversi ty .

We have organized water resources protect ion, afforestat ion, local act ivi t ies and other effor ts forenvironmental preservat ion at our plants f rom the viewpoint of biodiversi ty preservat ion and locatedchal lenges that we should address . In 2014, we s tar ted making effor ts focusing on the fol lowing i tems atour plants .

Check the green coverage, examine the possibi l i ty of improving i t , and make an improvement plan.Stabi l ize faci l i t ies by per iodical ly inspect ing eff luent t reatment faci l i t ies , level ing load of sewagetreatment and taking other measures . We review the voluntar i ly managed s tandard value of chemicals a tplants where the actual concentrat ion of chemicals is much lower than the voluntar i ly managed s tandardvalue.

Basic concept

Future efforts

Efforts at Oyama Plant "Watarase Flood Control Basin CleaningCampaign"

People c lean ing up the wet land

Employees at Oyama Plant par t ic ipate in the "WataraseFlood Control Basin Cleaning Campaign" hosted by theTonegawa Headwater Stream User Counci l to preserve theenvironment of Watarase Flood Control Basin.Watarase Flood Control Basin is the largest wet land inHonshu and southward with a total area of 3300 ha, whichwas inscr ibed as a regis tered wet lands under the RamsarConvent ion on July 3, 2012.We wil l cont inue to cooperate with local communit ies toconduct business l iving together with this r ich naturalenvironment .

Biodiversity Efforts

Basic concept Future effor ts

I t is necessary to ensure biodiversi ty and preserve the ecosystem to maintain the sustainable globalenvironment in the future. In 2013, Showa Denko decided to take part in “Japan Business and Biodiversi tyPartnership*,” endorsing the object ive of the Act ion Pol ic ies to Pr ivate Sector Engagement inBiodiversi ty . The Showa Denko Group, taking this Act ion Pol ic ies into account , wil l assess the effects ofour business act ivi t ies on biodiversi ty and make our business act ivi t ies more biodiversi ty conscious ones.

*Japan Business and Biodiversi ty Partnership: A private sector biodiversi ty ini t ia t ive joint ly founded byNippon Keidanren (Japan Business Federat ion) , Japan Chamber of Commerce and Industry and KeizaiDoyukai (Japan Associat ion of Corporate Execut ives) . The object ive of this par tnership is to have a widerange of companies , regardless of industry and s ize , part ic ipate in this par tnership and voluntar i ly engagein effor ts to contr ibute to biodiversi ty to achieve the object ives of the Convention on Biodiversi ty .

We have organized water resources protect ion, afforestat ion, local act ivi t ies and other effor ts forenvironmental preservat ion at our plants f rom the viewpoint of biodiversi ty preservat ion and locatedchal lenges that we should address . In 2014, we s tar ted making effor ts focusing on the fol lowing i tems atour plants .

Check the green coverage, examine the possibi l i ty of improving i t , and make an improvement plan.Stabi l ize faci l i t ies by per iodical ly inspect ing eff luent t reatment faci l i t ies , level ing load of sewagetreatment and taking other measures . We review the voluntar i ly managed s tandard value of chemicals a tplants where the actual concentrat ion of chemicals is much lower than the voluntar i ly managed s tandardvalue.

Basic concept

Future efforts

Efforts at Oyama Plant "Watarase Flood Control Basin CleaningCampaign"


Plans for 2013

[Pol icy]

Real iz ing equipment -

inc idents - f ree s ta tus

[Plans]

Thoroughly implement ing

Act ive Safe ty ac t iv i t i es

Ut i l i z ing resu l t s o f the

func t ion-spec i f ic personnel

meet ings

Ensur ing the

implementa t ion of HRM

examina t ions

Promot ing voluntary sa fe ty

in i t ia t ives


Inc idents : Two f i res ,one

leak in the Showa Denko

Group (Compared to a to ta l

of four in 2012)

Issued , spread awareness

of and hor izonta l ly

deployed the rev ised

edi t ion of the equipment

inc ident prevent ion

checkl i s t , which inc ludes

the JCIA Safe ty and

Accident Prevent ion

Guide l ines , ex te rna l

acc ident in format ion and

other in format ion .

Tes ted and brushed up

guide l ines by process ,

machinery , e lec t r ic i ty , and

ins t rumenta t ion a t each

plan t .

Reviewed one new pro jec t

and checked one t r ia l run

resu l t .

Comple ted the ex is t ing

handled subs tance survey

and HRM appl icabi l i ty

de te rmina t ion .

S ta r ted shar ing and

ut i l i z ing across the

company, examples of

so lv ing i ssues a t p lan ts .

Sys temat ica l ly per formed

emergency dr i l l s and

in te rna l audi t s a t each

plan t .

P lanned and promoted

measures to s t rengthen

ear thquake res i s tance and

measures aga ins t

l iquefac t ion a t each p lant .

Plans for 2014

[Pol icy]



[Plans]



Ensur ing the


examina t ions


in i t ia t ives

Es tab l i sh a r i sk assessment

f ramework and procedures

in the nons ta t ionary s ta te

and unusua l opera t ions

Main ta in and improve

measures aga ins t

ear thquakes for each p iece

of equipment and fac i l i t i es


PDCA a t au thor ized h igh-

pressure gas p lan ts , e tc .

Shiojiri PlantOn September 10, 2013, a totalof 256 people from ShowaDenko Shioj i r i Plant , ShinshuShowa Shioj i r i Plant andbusiness par tners in the plantspart ic ipated in a t ra ining dri l lthat assumed an ear thquakewith a seismic intensi ty of 6Upper had occurred inthe central region of Nagano.

Kawasaki PlantA comprehensive disasterprevent ion t ra ining dri l l washeld on the two days ofSeptember 26 and October 1 ,2013 in the Ogimachi regionwhere the Kawasaki Plant islocated. An appropriate disasterprevent ion system for when alarge-scale ear thquake hi ts wasestabl ished and prompt disasterresponse act ivi t ies wereimplemented. This dr i l l isconducted every year to preparefor an unexpected largedisaster .

HeadquartersOn November 12, 2013, adisaster prevent ion t ra iningdri l l that assumed anearthquake occurr ing beneathTokyo was conducted at thehead off ice .

Safety and Disaster Prevention

Since 2008, the Showa Denko Group has been promoting i ts “Act ive Safety” ini t ia t ive in which weanalyze past accidents and incidents to prevent recurrence. In 2013, there were three equipment accidents ,in which there were for tunately no personal injur ies involved (average number of accidents for the pastf ive years = less than f ive accidents a year) . In the chemical industry, ser ious accidents have occurredsince 2011, and with this , our group has enhanced var ious act ivi t ies such as holding “Safety Meet ings,”which are management meet ings where discussions focus on discussing safety-related matters in order toreturn to the or igins of the “Active Safety” ini t ia t ive. Accidents that have occurred at other companieswere caused by insuff ic ient ident i f icat ion of potent ia l r isks and measures a t faci l i t ies that handle highlyself-react ive or other highly hazardous mater ia ls . The Showa Denko Group is engaged in the fol lowingact ivi t ies to prevent such incidents .

1. Thorough implementation of HRM (high risk material) examinationsWe have adopted special examinat ions to thoroughly ident i fy potent ial r isks and their countermeasures atnew faci l i t ies that handle highly self-react ive or other hazardous HRMs. We have completed assessmentsof exis t ing plants a t each workplace to determine whether each materia l handled comes under HRM or not .We wil l cont inue to ident i fy major r isks in exis t ing HRMs and implement countermeasures .

2. Revision of equipment incident prevention checklistWe revised the current “Equipment Incident Prevent ion Checkl is t” to incorporate the Safety and Accident-Prevent ion Guidel ines issued by JCIA, external accident information and other mater ia l and s tar tednot i f icat ion and horizontal deployment of the revised checkl is t .

3. Trial application of substantial safety design guidel inesAt each plant , we s tar ted t r ia l appl icat ion of the Substant ia l Safety Design Guidel ines , which were createdlast year , separately for each funct ion of process , machines, e lectr ic i ty , and instrumentat ion.

In 2010, the Showa Denko Group s tar ted est imat ions of the scale of ground motion caused by ear thquakesthat are expected to occur in the future, ear thquake r isk assessments and examinat ion of ear thquake-resis tance for faci l i t ies and bui ldings, and completed them for a l l workplaces including aff i l ia tedcompanies , by 2012. In regards to ear thquake-resis tance measures for equipment and bui ldings, we haveset pr ior i t ies according to ear thquake r isk and implementing measures in order of pr ior i ty . We have beencontinuously implementing ear thquake r isk assessments and ear thquake-resis tance measures s ince 2013,paying at tent ion to developments of countermeasures a t the nat ional and local government levels againstear thquakes that may hi t direct ly under the Tokyo area, to quickly incorporate measures for our group aswell .We assessed the ear thquake-resis tance of the head off ice bui lding as a precaut ion against an ear thquakethat may hi t direct ly underneath Tokyo and confirmed that the bui lding meets the new quake-resis tancestandards.In 2014, we plan to s tar t re inforcing exis t ing faci l i t ies with high degree of importance such as high-pressure gas faci l i t ies and hazardous mater ia l faci l i t ies to br ing them in l ine with the la test quake-resis tance s tandards.

Disaster prevention training is conducted at each plant

Equipment safety

Precautions against earthquakes


Plans for 2013

[Pol icy]



[Plans]





meet ings

Ensur ing the


examina t ions


in i t ia t ives





of four in 2012)
















plan t .



resu l t .




de te rmina t ion .








plan t .




measures aga ins t


Plans for 2014

[Pol icy]



[Plans]



Ensur ing the


examina t ions


in i t ia t ives






measures aga ins t
















Equipment safety



Plans for 2013

[Pol icy]

Zero los t - t ime and non-

los t - t ime in jur ies a t each

s i te

Es tab l i sh ing the s t ronges t

safe ty management sys tem

in the chemica l indus t ry

[Plans]

Enhancing safe ty s t rength

of works i tes and personne l

Address ing equipment and

process def ic ienc ies

Improving safe ty

management leve ls

Fol lowing up on spec ia l

sa fe ty ac t iv i t i es and

s t rengthening measures t o

prevent s imi la r inc idents


Three inc idents resu l t ing

in los t - t ime in jur ies (2 in

2012) , and 0 non- los t - t ime

in jur ies (4 in 2012)

occurred in the en t i r e

Showa Denko Group

Rate of inc ident s resu l t ing

in los t - t ime in jur ies in

Showa Denko Group: 0 .22

(0 .14 in 2012)

Ins t i tu te for Advanced and

Core Technology (Toke) ,

and the Showa Aluminum

Can Oyama, Hikone and

Omuta P lan ts rece ived

exte rna l sa fe ty awards .

I sesaki P lan t , and The

Showa Denko Gas Product s

Kawasaki P lan t acqui red

indus t r ia l sa fe ty and hea l th

management sys tems

cer t i f ica t ion . A to ta l o f 16

group p lan t s acqui red

cer t i f ica t ion .

Plans for 2014

[Pol icy]



s i te




[Plans]

Rate of los t - t ime in jur ies

as the Group: 0 .1 or l ess

El imina t ion of dangerous

equipment and work

Main tenance and

improvement of sa fe ty

sens i t iv i ty

Increase in p lan ts tha t

acqui re indus t r ia l sa fe ty

and hea l th management

sys tem cer t i f ica t ion

Trends infrequency rate of lost- t ime injuriesIn order to e l iminate work-related accidents , theShowa Denko Group has promoted “Active Safety”act ivi t ies (*1) s ince 2008 by using i ts or igina l“Active Safety Checkl is t .” Although we had beenconduct ing r isk assessments of faci l i t ies and workthrough these act ivi t ies , a ser ious accident occurredat Showa Denko Sakai Aluminum K.K. in March2014. We are current ly thoroughly analyzing thecause of this accident and we are current ly takingmeasures at a l l group companies to prevent anyrecurrence.

Heal th improvement seminar"VDT

Stre tches to Reduce Eye Fa t igue"

he ld on December 3 a t the head of f ice

To work vigorously without anxiety, i t is important fo remployees to maintain and promote their own heal th and theheal th of family throughout thei r l ives .We are current ly promoting “Showa Denko Group Vivid Heal t hPromotion Plan” act ivi t ies that focus on prevent ion andimprovement of l i festyle-related diseases and developing aheal thy mind as new heal th promotion act ivi t ies for the fouryears between 2013 and 2016. We wil l provide fol low-upsupport , including subsequent measures and heal th guidancefol lowing heal th checkups for effor ts regarding prevent ion andimprovement of l i festyle-related diseases. In regards todeveloping a heal thy mind, these effor ts wil l be s teadi lyimplemented based on the “Mental Heal th Promotion Plan”establ ished in 2012.

Occupational Health and Safety

Name of awardRecipient s i te andindividual

Year received

ResponsibleCare

Minister ofEconomy, Trade andIndustry Award,Fiscal 2013 3R(Reduce, Reuse,Recycle)Promotion Meri tAward

"40th Anniversary ofAluminum CanRecycl ingActivi t ies" byShowa Denko K.K.

October , 2013

8th JCIA AnnualResponsible CareAward

Toyama Plant ofShowa DenkoCeramics Co. , Ltd .（Zero emissionsefforts）

May , 2014

Disasterprevent ion

Fiscal 2013 JPCASecuri ty Award

Masayoshi Sato ,Ethylene Sect ion,Product ion Sect ionOita ComplexManufactur ingDepartment

October , 2013

Fiscal 2014Excel lent HazardousMater ia ls Faci l i tyAccredi ted by theCommissioner of theFire and DisasterManagement Agency

Tatsuno Plamt June , 2014


Yokkaichi Plant ,Union Showa K.K.

June , 2014

Heal th andoccupat ionalsafety

Fiscal 2012 Ministerof Heal th, Labour,and Welfare 's Awardfor business-faci l i tymanagers who placeprior i ty on safety

Kenichi Suzuki , Foi lProduct ion Sect ion,Sakai Plant

March , 2013

Accident-free recordcert i f icate from theMinist ry of Heal th ,Labour and Welfare(Firs t -c lass)

Hikone Plant ofShowa AluminumCan Corp.

Apri l , 2013

Special Meri t Awardof the 37th JCIASafety Awards

Inst i tute forAdvanced and CoreTechnology

May , 2013

Meri t Award of the37th JCIA SafetyAwards

Oyama Plant ofShowa AluminumCan Corp.

May , 2013

Special Award forExcel lence, 2012Japan AluminumAssociat ionOccupat ional SafetyAwards

Ohmuta Plant ofShowa AluminumCan Corp.

May , 2013



May , 2013



May , 2013

Fiscal 2013 JapanIndustr ia l Safety &Heal th Associat ionGreen Cross Award

Junichi Kominami,EnvironmentalSafety Team,GeneralAffairs Department ,Sakai Plant

October , 2013


Sachihi to Hoshino,Faci l i ty Sect ion,Oyama Plant ofShowa AluminumCan Corp.

October , 2013

Safty Meri t Awardof the 38th JCIASafety Awards

Chichibu plant May , 2014



May , 2014


Omuta Plant ofShowa AluminumCan Corp.

May , 2014



May , 2014



May , 2014

The Inst i tute for Advanced and Core Technology (Toke) and the Showa Aluminum Can Oyama Plan treceived Safety Meri t Awards of the JCIA Safety Awards in May 2013. These awards are given toexemplary business s i tes that perform outstanding act ivi t ies as part of voluntary promotion o fsecuri ty, safety and heal th in the chemical industry. The winners were selected based on on-si t einvest igat ion and as a resul t of del iberat ions by the Safety Award Committee consis t ing of experts i nthe f ie ld .Since receiving the Safety Effort Award in 2007, the Inst i tute for Advanced and Core Technolog y(Toke) has cont inued i ts no-accident record and received the Safety Special Meri t Award in 2013.They are promoting thorough r isk assessment , chemical management and other act ivi t ies wit h“priori t iz ing the ensuring of safety and environmental protect ion over al l research act ivi t ies” as i t sbasic pr inciple for Responsible Care act ivi t ies .The Showa Aluminum Can Oyama Plant was act ively engaged in safety act ivi t ies and cont inued i t sno-accident record to receive the Safety Meri t Award through a common awareness of “al l employeestaking act ion with themselves as the lead actor ,” under the leadership of the plant director .

Condi t ions related to asbestos were as fol lows.

Use of asbestos

The Group nei ther manufactures nor sel ls any products incorporat ing asbestos .The Group uses seal ing materials containing asbestos for cer tain product ion faci l i t ies , including those fo rchemicals . We are current ly replacing these materials with materials that do not contain asbestos .

Health impairment

For employees who have direct ly or indirect ly handled asbestos , we perform periodic heal th checkups a srequired by relevant laws. No incidents of heal th impairment have occurred in employees.We also provide asbestos heal th checkups for ret i red employees of the Showa Denko Group, in addi t ion t ocorresponding to various consul tat ions. There were no cases off ic ial ly recognized as work-relate dasbestos diseases among ret i red employees in FY 2012 (according to the la test data publ ished by th eMinist ry of Heal th , Labour and Welfare) . We have received no reports of injury or impairment to th eheal th from famil ies of employees, re t i red employees, or the residents of local communit ies .

Promoting mental and physical health

Heal th re la ted seminars

Category FrequencyTotal number ofpart ic ipants

Mental heal th seminars 35 1,322

Seminars on l i festyle-related diseasesand cancer

7 235

Exercise seminars 5 94

Firs t a id seminars 3 158

Other seminars 16 350

Total 66 2,159


These act ivi t ies are for promoting the prevent ion of work-related accidents , by specifying an dimproving the sources of the r isks based on the r isk assessments . In detai l , examples of past accidentsare used as a reference. Risk assessment is a process to reduce r isks by ident i fying the r isks an dhazards in a workplace, evaluate the r isks which may occur , and take act ion according to the resul ts ofthe assessments .

1

Scope of Group companies (As of December 2013) :(Underl ined companies are those added to the scope of industr ia l accident s ta t is t ics in FY2011.) :Tsurusaki Kyodo Doryoku K.K. , Showa Showa Denko Ceramics Co. , Ltd.(Toyama), Shioj i r iShowa Co. Ltd. , Showa Denko Packaging Co. , Ltd.(Hikone and Isehara)、Showa Aluminum Can Corp. ,Showa Denko Sakai Aluminum K.K. , Showa Denko Electronics K.K. , Showa Denko Kenzai K.K. ,Union Showa K.K. , Niigata Showa K.K. , Showa Aluminum Can Recycl ing Center , HIPACK CO.,LTD. ,Showa Denko Gas Products Co. , Ltd. , Clean-S Showa K.K. , Nippon Polytech Corp. ,KANAECHEMICALS Co. , Ltd. , Showa Denko Kenso K.K. , Tohoku Metal Chemical Co. , Ltd.（ to March 31,2013） , Nagoya Kenmazai Kogyo K.K. (Nagoya and Shioj i r i ) , Tokyo Aluminum Wire Corporat ion,Showa Denko HD Yamagata K.K. , and Fuyo Perl i te Co. , Ltd .

2

2013-2014 List of RC-related awards received by the Showa Denko Groupcompanies

Institute for Advanced and Core Technology (Toke) and theShowa Aluminum Can Oyama Plant Receives the Safety MeritAwards of the 2013 JCIA Safety Awards

Asbestos


Plans for 2013

[Pol icy]



s i te




[Plans]





Improving safe ty

management leve ls











Showa Denko Group




(0 .14 in 2012)











management sys tems




Plans for 2014

[Pol icy]



s i te




[Plans]




equipment and work

Main tenance and


sens i t iv i ty












Year received

ResponsibleCare



October , 2013



May , 2014

Disasterprevent ion



October , 2013





June , 2014




March , 2013



Apri l , 2013



May , 2013



May , 2013



May , 2013



May , 2013



May , 2013



October , 2013



October , 2013





May , 2014



May , 2014



May , 2014



May , 2014



Use of asbestos


Health impairment







7 235




Total 66 2,159



1


2



Asbestos

frequency rate of lost-time injuries:Number of deaths and injuries occurring per one million working hours, as calculated by the following formula:Frequency rate of lost-time injuries = (Number of deaths and injuries) / (total working hours) x1,000,000

risk assessments:A series of processes intended to identify the risks and dangers inherent in a workplace; to estimate the extent of damage and likelihood of occurrence based on such identification; and to prioritize countermeasures and determine risk-reduction measures.


Name of awardRecipient site andindividual

Year received

ResponsibleCare

Minister of Economy, Tradeand Industry Award, Fiscal2013 3R (Reduce, Reuse,Recycle) Promotion MeritAward

"40th Anniversary ofAluminum CanRecycling Activities" byShowa Denko K.K.

October , 2013

8th JCIA Annual ResponsibleCare Award

Toyama Plant of ShowaDenko Ceramics Co.,Ltd. （Zero emissionsefforts）

May , 2014

Disasterprevention

Fiscal 2013 JPCA SecurityAward

Masayoshi Sato,Ethylene Section,Production Section OitaComplex ManufacturingDepartment

October , 2013

Fiscal 2014 ExcellentHazardous Materials FacilityAccredited by theCommissioner of the Fireand Disaster ManagementAgency



Yokkaichi Plant, UnionShowa K.K.

June , 2014

Health andoccupationalsafety

Fiscal 2012 Minister ofHealth, Labour, andWelfare's Award forbusiness-facility managerswho place priority on safety

Kenichi Suzuki, FoilProduction Section,Sakai Plant

March , 2013

Accident-free recordcertificate from the Ministryof Health, Labour andWelfare (First-class)

Hikone Plant of ShowaAluminum Can Corp.

April , 2013

Special Merit Award of the37th JCIA Safety Awards

Institute for Advancedand Core Technology

May , 2013

Merit Award of the 37thJCIA Safety Awards

Oyama Plant of ShowaAluminum Can Corp.

May , 2013

Special Award forExcellence, 2012 JapanAluminum AssociationOccupational Safety Awards

Ohmuta Plant of ShowaAluminum Can Corp.

May , 2013



May , 2013



May , 2013

Fiscal 2013 Japan IndustrialSafety & Health AssociationGreen Cross Award

Junichi Kominami,Environmental SafetyTeam, GeneralAffairs Department,Sakai Plant

October , 2013


Sachihito Hoshino,Facility Section, OyamaPlant of ShowaAluminum Can Corp.

October , 2013

Safty Merit Award of the38th JCIA Safety Awards




May , 2014


Omuta Plant of ShowaAluminum Can Corp.

May , 2014



May , 2014



May , 2014

Plans for 2013

[Pol icy]



s i te




[Plans]





Improving safe ty

management leve ls











Showa Denko Group




(0 .14 in 2012)











management sys tems




Plans for 2014

[Pol icy]



s i te




[Plans]




equipment and work

Main tenance and


sens i t iv i ty












Year received

ResponsibleCare



October , 2013



May , 2014

Disasterprevent ion



October , 2013





June , 2014




March , 2013



Apri l , 2013



May , 2013



May , 2013



May , 2013



May , 2013



May , 2013



October , 2013



October , 2013





May , 2014



May , 2014



May , 2014



May , 2014



Use of asbestos


Health impairment







7 235




Total 66 2,159



1


2



Asbestos



Year received

ResponsibleCare



October , 2013



May , 2014

Disasterprevention



October , 2013





June , 2014




March , 2013



April , 2013



May , 2013



May , 2013



May , 2013



May , 2013



May , 2013



October , 2013



October , 2013





May , 2014



May , 2014



May , 2014



May , 2014


Year received

ResponsibleCare



October , 2013



May , 2014

Disasterprevention



October , 2013





June , 2014




March , 2013



April , 2013



May , 2013



May , 2013



May , 2013



May , 2013



May , 2013



October , 2013



October , 2013





May , 2014



May , 2014



May , 2014



May , 2014


Plans for 2013

[Pol icy]



s i te




[Plans]





Improving safe ty

management leve ls











Showa Denko Group




(0 .14 in 2012)











management sys tems




Plans for 2014

[Pol icy]



s i te




[Plans]




equipment and work

Main tenance and


sens i t iv i ty












Year received

ResponsibleCare



October , 2013



May , 2014

Disasterprevent ion



October , 2013





June , 2014




March , 2013



Apri l , 2013



May , 2013



May , 2013



May , 2013



May , 2013



May , 2013



October , 2013



October , 2013





May , 2014



May , 2014



May , 2014



May , 2014



Use of asbestos


Health impairment







7 235




Total 66 2,159



1


2



Asbestos


■ Health related seminars

Category FrequencyTotal number ofparticipants

Mental health seminars 35 1,322

Seminars on lifestyle -related diseases andcancer

7 235


First aid seminars 3 158


Total 66 2,159

Plans for 2013

[Pol icy]



s i te




[Plans]





Improving safe ty

management leve ls











Showa Denko Group




(0 .14 in 2012)











management sys tems




Plans for 2014

[Pol icy]



s i te




[Plans]




equipment and work

Main tenance and


sens i t iv i ty












Year received

ResponsibleCare



October , 2013



May , 2014

Disasterprevent ion



October , 2013





June , 2014




March , 2013



Apri l , 2013



May , 2013



May , 2013



May , 2013



May , 2013



May , 2013



October , 2013



October , 2013





May , 2014



May , 2014



May , 2014



May , 2014



Use of asbestos


Health impairment







7 235




Total 66 2,159



1


2



Asbestos


Plans for 2013

[Pol icy]

Appropr ia te response t o

rev is ions of domest ic and

overseas laws

[Plans]

Comprehens ive

implementa t ion of

compl iance , educa t ion , and

management s t ruc tures

Col lec t ion , eva lua t ion and

dissemina t ion of chemica l

subs tance sa fe ty

informat ion


Establ i shed the

comprehens ive chemica ls

management sys tem

(Crea t ion of SDS,

SDS/JIPS safe ty summary

shee ts , e tc . )

Regis te red chemica l

subs tances subjec t to 2013

regis t ra t ion program unde r

REACH regula t ions

Plans for 2014

[Pol icy]

No mismanagement

[Plans]

Enr ich ing educa t ion in

laws and safe ty concern ing

chemica l subs tances

Enr ich ing r i sk assessment

Comple t ing rev i s ion of a l l

p roducts ' SDS to conform

to GHS by 2015

Appropr ia te response to

overseas laws and

regula t ions

As i t works to achieve the goal agreed to in theWorld Summit on Sustainable Development (WSSD)"to minimize the negat ive effects of chemica lsubstances on people and the environment by 2020" ,the Showa Denko Group is seeking to implementintegrated management of chemical substances underthe Internat ional Counci l of Chemical Associat ions(ICCA).We now part ic ipate in a new voluntary chemica lsubstance management act ivi ty "JIPS"(JapanIni t ia t ive of Product Stewardship) to consider thesupply chain and enhance r isk assessment andmanagement . We are also enhancing chemica lsubstance management program "Produc tStewardship" by col lect ing information andevaluat ing safety at each stage of manufacturing ,sales , and use/consumption .We as a Group have assessed the r isks of substancesin order of pr ior i ty and posted the Safety DataSummaries on the ICCA GPS portal s i te .

We are paying at tent ion to and thoroughlyaddressing conformity with REACH and CLPregulat ions in the European Union, new BIOCIDEregulat ions enforced in September 2013. We are a lsokeeping an eye on movement overseas concerningnew laws and regulat ions including law revis ions inAsia/ASEAN countr ies (such as Korea, Taiwan ,China, Malaysia , Vietnam, Indonesia , Thai land,Phi l ippines and Austral ia) and TSCA reform bi l ls inthe U.S.We wil l cont inue thoroughly addressing new movesin each country by sharing information within theGroup and joining the Internat ional Law WorkingGroup of the Japan Chemical Industry Associat ion .

The Group provides i ts customers and consumerswith information on r isks or hazards re la ted to a l l o fi ts products for sale in Japan using the JIS-basedlabels and SDS. Furthermore, we are in the processof reviewing al l those labels and SDS to meet thenew JIS 7253 s tandard.Regarding overseas products , we also promote GHScompliance of the labels and SDS based on theregulat ions of each country, such as CLP regulat ionsof EU, the revis ion of HCS (Hazard Communicat ionStandard) by US-OSHA(Occupat ional Safety andHeal th Administ ra t ion of the United States) , e tc .Furthermore, the Group prepares Yel low Cards asprovisions against accidents involving chemicalsubstances during road t ransport . We enforce tanke rtruck drivers to carry the cards at a l l t imes whentransport ing hazardous materials .

Chemical Substances Safety

Internat ional chemicals management act ivi t ies Foreign laws and regulat ionsGHS-compatible SDS

To help achieve goal of the 2020 World Summit on Sustainable Development (WSSD)—To use an dproduce chemicals in ways that minimize s ignif icant adverse effects on human heal th and theenvironment— the Showa Denko Group has introduced a comprehensive chemicals managemen tsystem to provide the basic infrastructure for managing chemicals . The newly introduce dcomprehensive chemicals management system wil l integrate information management for a l lchemicals we use in and outside Japan and al low information sharing Group-wide. Accordingly, w ecan rel iably respond to the submission of various not i f icat ions s t ipulated by the revised La wConcerning Examinat ion and Regulat ion of Manufacture and Handl ing of Chemical Substances andthe Law Concerning Pol lutant Release and Transfer Register (PRTR Law), the EU - REACHregulat ions, CLP regulat ions, BIOCIDE regulat ions, US-TSCA, GPS/JIPS r isk assessments , e tc .

Intended effects

Comprehensive chemicals management system

*CSA： Chemica l Safe ty Assessment

International chemicals management activities

Foreign laws and regulations

GHS-compatible SDS

Introducing a comprehensive chemicals management system

Sharing of information on chemicals throughout the Showa Denko GroupIntegrated management of information, including information on product ion, sales , the supplychain (SC) and use

1.

Safeguarding against human error re la ted to the enforcement or revis ion of re la ted laws an dregulat ionsAutomatic updates of information on laws and regulat ions concerning products , l inked to th edatabases of Japanese and foreign laws and regulat ions

2.

Streamlined procedures for chemicals managementAutomatic updat ing and output of SDS information Improved data precis ion and t ransparency foreach business s i te for use in compil ing various s tat is t ical report s

3.

Establ ishment and automation of the systems relat ing to chemicals r isk assessment such as GPSand JIPS.

4.

Plans for 2013

[Pol icy]



overseas laws

[Plans]

Comprehens ive

implementa t ion of





subs tance sa fe ty

informat ion


Establ i shed the


management sys tem

(Crea t ion of SDS,


shee ts , e tc . )




REACH regula t ions

Plans for 2014

[Pol icy]

No mismanagement

[Plans]







to GHS by 2015


overseas laws and

regula t ions







Intended effects





GHS-compatible SDS



1.


2.


3.


4.


Plans for 2013

[Pol icy]



overseas laws

[Plans]

Comprehens ive

implementa t ion of





subs tance sa fe ty

informat ion


Establ i shed the


management sys tem

(Crea t ion of SDS,


shee ts , e tc . )




REACH regula t ions

Plans for 2014

[Pol icy]

No mismanagement

[Plans]







to GHS by 2015


overseas laws and

regula t ions







Intended effects





GHS-compatible SDS



1.


2.


3.


4.

SDS(Safety Data Sheet):This is a document provided by the supplier to the user (customer) of a chemical substance, covering such matters as its name, toxicity, and physical/chemical properties; cautions concerning its handling and storage; and emergency measures.

JIPS(Japan Initiative of Product Stewardship):The new voluntary chemical management initiative by JCIA to enhance risk assessment and risk management with consideration for supply chain.

REACH:REACH:EU Regulation on Registration, Evaluation, Authorization, and Restriction of Chemicals

GHS:(Globally Harmonized System of Classification and Labelling of Chemicals) This is a system for classifying the hazards and toxicity of chemical substances according to certain criteria, reflecting the results on labeling and MSDS, and using these to prevent accidents and protect human health and the environment.

GPS:GPS:Global Product Strategy

CLP:EU Regulation on Registration, Evaluation, Authorization, and Restriction of Chemicals

TSCA:Toxic Substance Control Act

Yellow Cards:Yellow card :This refers to an emergency contact card briefly describing appropriate response by transportation company personnel, police, and fire-fighters in the event of accidents involving hazardous or toxic substances.


Plans for 2013

[Pol icy]



overseas laws

[Plans]

Comprehens ive

implementa t ion of





subs tance sa fe ty

informat ion


Establ i shed the


management sys tem

(Crea t ion of SDS,


shee ts , e tc . )




REACH regula t ions

Plans for 2014

[Pol icy]

No mismanagement

[Plans]







to GHS by 2015


overseas laws and

regula t ions







Intended effects





GHS-compatible SDS



1.


2.


3.


4.


Plans for 2013

[Pol icy]

Making products tha t o f fe r

to ta l sa fe ty in use

No product acc idents , no

major compla in ts

[P lans]

Per forming appropr ia t e

product r i sk assessments

Implement ing e f fec t ive

prevent ive measures

(process capabi l i ty qua l i ty

assurance)


Product re lease rev iews

s ta r ted in Ju ly 2012 have

taken roo t . The number of

products rev iewed in 2013

was 14 . The number o f

product acc ident s remain

a t zero as a resu l t o f the

enhancing of

mul t id i sc ip l inary r i sk

assessments .

Checked r i sk assessment

implementa t ion s ta tus f rom

the four v iewpoin ts o f

unders tanding cus tomer

requi rements , p rocess

capabi l i ty , p roduc t

acc ident

occurrence /defec t ive

product sh ipment

prevent ion measures , and

spec i f ica t ion change

management .

Checking process

capabi l i ty of spec i f ied

products . There were no

Plans for 2014

[Pol icy]




major compla in ts

[P lans]






assurance)

Trends in annual numbers of complaints (With a score of 100 represent ing the numberof c la ims in 2006)

The number of complaints regarding product qual i ty hasdecl ined year by year . In 2012, we successful ly reducedthe number of customer complaints by 30% from theprevious year , the same reduct ion as in 2011, andmaintained this low level of customer complaints in2013.

In June 2013, we held a seminar intended to ra ise the levelof internal audi ts a t Oita Complex.At the seminar , we held exercises on process evaluat ionindexes and lectures on how to improve the effect ivenessof internal audi ts , a iming to improve Oita Complexemployees’ ski l ls for qual i ty management and interna laudi ts .

Quality Assurance

Observance of relevant laws and internal rules

In addi t ion to legal compliance, we also establ ished the “Qual i ty Assurance and Qual i ty Control Rules”(see the f igure below) to del iver safe and secure products to our customers . These rules are reviewed andrevised every year to improve the effect iveness of qual i ty assurance.The “Quali ty Assurance and Qual i ty Control Rules” are basic rules to organizat ional ly and systematical l yperform product safety act ivi t ies through product design/development , launching/manufactur ing, sales ,information management af ter sales and other product-related act ivi t ies . We have bui l t a f ramework t operform str ic t inspect ions before sale part icular ly for ingredients of pharmaceut ical and cosmetic productsand other products of which the product i tself or i ts ingredients come into direct or indirect contact wit hthe human body or ingested. I f manufacturing condit ions of these products are la ter changed, there is a ls oa system in place to thoroughly confirm that these changes do not affect product qual i ty .Not only do we confirm the safety of the products themselves, we also thoroughly examine the r isk sassumed and methods to avoid them from a variety of angles such as product character is t ics , use, the wa ythe product is used, customer character is t ics , and disposal problems at examinat ion meet ings or othe roccasions.

（Quali ty Assurance and Qual i ty Control Rules）

Quality management system (Quality control scheme)

Most of our group companies have been cert i f ied by internat ional s tandards such as ISO9001 andISO/TS16949, and we cont inue to review our qual i ty management systems to improve the qual i ty ofproducts and services .

Reducing complaints

Activities targeting improved quality management levels

The Showa Denko Group performs periodic audi ts group-wide across business divis ions, plants , off ice sand aff i l ia ted companies to raise the level of qual i ty management .In 2013, we audi ted 43 workplaces to ident i fy and improve issues (especial ly in terms of ident i f icat ion ofcustomer requirements , process capabi l i ty , leakage prevent ion measures and change control) regarding th eimplementat ion of effect ive precaut ionary measures (removal of potent ial fa i lure causes to preven tproduct accidents and other incidents) , an emphasized qual i ty object ive in 2013.Furthermore, in addi t ion to the regular internal audi tor t ra ining seminars , ISO/TS16949 seminars ,explanat ions of qual i ty assurance and qual i ty control rules , and product r isk seminars , we also hel dseminars a t four business s i tes to ra ise the level of internal audi tors . In 2013, we also enhanced t ra inin gmaterials for e- learning concerning qual i ty control and product r isk management that was s tar ted in 2011 .

Ensuring product safety

Improving quality assurance and quality control levels

Quality control seminar held at Oita complex


Plans for 2013

[Pol icy]




major compla in ts

[P lans]






assurance)









enhancing of


assessments .







acc ident


product sh ipment



management .

Checking process



Plans for 2014

[Pol icy]




major compla in ts

[P lans]






assurance)




Quality Assurance






Reducing complaints







Plans for 2013

[Pol icy]




major compla in ts

[P lans]






assurance)









enhancing of


assessments .







acc ident


product sh ipment



management .

Checking process



Plans for 2014

[Pol icy]




major compla in ts

[P lans]






assurance)




Quality Assurance






Reducing complaints






ISO (International Organization for Standardization) A private-sector international specialist organization established in 1947 to promote international standardization of products and services. In 1987, it established the ISO 9000 series of standards on quality control and assurance; in 1996, it began establishing the ISO 14000 series of environmental standards. The ISO 26000 standard for social responsibility was announced in 2010.


Performance Data Collection

Total hours of human r ights educat ion（Showa Denko group）

2012 2013

(hours) 4,680.0 8,834.6

For the extent of the data col lect ion, please refer to the “List of data col lect ion boundaries .

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Number of requests for consul ta t ion received by the Corporate EthicsHotl ine (Showa Denko Group)

2012 2013

(Number of requests for consul ta t ion) 32 41


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Percentage of handicapped employees（Showa Denko K.K.）

2008 2009 2010 2011 2012 2013

1.92% 1.87% 1.81% 2.01% 2.28% 2.34%

Number of employees on consol idated basis

2008 2009 2010 2011 2012 2013

Total number ofemployees inJapan onconsol idatedbasis

6,246 6,449 6,101 6,031 5,802 5,905

Total number ofal l overseasemployees onconsol idatedbasis

496 575 566 588 599 618

Total number ofal l overseasemployees onconsol idatedbasis

5,510 5,115 5,496 5,511 4,088 4,329

Total number ofoverseas femaleemployees onconsol idatedbasis

1,695 1,625 1,638 1,663 1,239 1,287

Human rights

Corporate ethics and compliance

Labor practices

■ Total hours of human rights education（Showa Denko group）

2012 2013

(hours) 4,680.0 8,834.6

Group)

2012 2013

(Number of requests for consultation) 32 41

■ Percentage of handicapped employees（Showa Denko K.K.）

2008 2009 2010 2011 2012 2013

1.92% 1.87% 1.81% 2.01% 2.28% 2.34%

■ Number of employees on consolidated basis

2008 2009 2010 2011 2012 2013

Total number of employees inJapan on consolidated basis

6,246 6,449 6,101 6,031 5,802 5,905

Total number of all overseasemployees on consolidated basis

496 575 566 588 599 618

Total number of all overseasemployees on consolidated basis

5,510 5,115 5,496 5,511 4,088 4,329

Total number of overseas femaleemployees on consolidated basis

1,695 1,625 1,638 1,663 1,239 1,287



Number of female managers and i ts ra t io（Showa Denko K.K.）

2008 2009 2010 2011 2012 2013

Number offemalemanagers

10 11 13 11 14 14

femalemanagersrat io

0.24％ 0.27％ 0.31％ 0.26％ 0.35％ 0.36％

The average age（Showa Denko K.K）39.5 (as of December, 2013)

The average length of cont inuous employment（Showa Denko K.K）16.7 years (as of Desember, 2013)

The average annual wage（Showa Denko K.K）6,561,464 yen (as of Desember, 2013)

The average overt ime work per month（Showa Denko K.K）17.7 hours (as of Desember, 2013)

Trends in working hours （Showa Denko K.K.）

2008 2009 2010 2011 2012 2013

Actualworkinghours

2054.4 1969.3 2019.2 2019.5 2008.5 2009.1

Annual paid hol idays taken (per employee)（Showa Denko K.K.）

2008 2009 2010 2011 2012 2013

Annual paid hol idaystaken

13.9 14.2 13.1 12.8 12.7 12.8

Number of employees who took the advantage of the work-l ife balance support programs（Showa Denko K.K.）

2008 2009 2010 2011 2012 2013

Childcare leave 46 46 47 63 67 86

Male 19 18 25 34 36 53

Female 27 28 22 29 31 33

Family care leave 2 3 0 3 2 0

Male 1 2 0 2 2 0

Female 1 1 0 1 0 0

Shortened workinghours forchi ldcare/family care

9 20 23 26 27 32

Male 0 0 0 0 1 1

Female 9 20 23 26 26 31

Ratio of re instatedemployees to thosewho took chi ldcareleave

100 82.4 85.7 100 100 82.4


2008 2009 2010 2011 2012 2013


10 11 13 11 14 14


0.24％ 0.27％ 0.31％ 0.26％ 0.35％ 0.36％






2008 2009 2010 2011 2012 2013

Actualworkinghours

2054.4 1969.3 2019.2 2019.5 2008.5 2009.1


2008 2009 2010 2011 2012 2013


13.9 14.2 13.1 12.8 12.7 12.8


2008 2009 2010 2011 2012 2013


Male 19 18 25 34 36 53

Female 27 28 22 29 31 33


Male 1 2 0 2 2 0

Female 1 1 0 1 0 0


9 20 23 26 27 32

Male 0 0 0 0 1 1

Female 9 20 23 26 26 31


100 82.4 85.7 100 100 82.4

■ Number of female managers and its ratio（Showa Denko K.K.）

2008 2009 2010 2011 2012 2013

Number of female managers 10 11 13 11 14 14

female managers ratio 0.24％ 0.27％ 0.31％ 0.26％ 0.35％ 0.36％

■ Trends in working hours （Showa Denko K.K.）

2008 2009 2010 2011 2012 2013

Actual working hours 2054.4 1969.3 2019.2 2019.5 2008.5 2009.1


2008 2009 2010 2011 2012 2013


10 11 13 11 14 14


0.24％ 0.27％ 0.31％ 0.26％ 0.35％ 0.36％






2008 2009 2010 2011 2012 2013

Actualworkinghours

2054.4 1969.3 2019.2 2019.5 2008.5 2009.1


2008 2009 2010 2011 2012 2013


13.9 14.2 13.1 12.8 12.7 12.8


2008 2009 2010 2011 2012 2013


Male 19 18 25 34 36 53

Female 27 28 22 29 31 33


Male 1 2 0 2 2 0

Female 1 1 0 1 0 0


9 20 23 26 27 32

Male 0 0 0 0 1 1

Female 9 20 23 26 26 31


100 82.4 85.7 100 100 82.4


2008 2009 2010 2011 2012 2013


10 11 13 11 14 14


0.24％ 0.27％ 0.31％ 0.26％ 0.35％ 0.36％






2008 2009 2010 2011 2012 2013

Actualworkinghours

2054.4 1969.3 2019.2 2019.5 2008.5 2009.1


2008 2009 2010 2011 2012 2013


13.9 14.2 13.1 12.8 12.7 12.8


2008 2009 2010 2011 2012 2013


Male 19 18 25 34 36 53

Female 27 28 22 29 31 33


Male 1 2 0 2 2 0

Female 1 1 0 1 0 0


9 20 23 26 27 32

Male 0 0 0 0 1 1

Female 9 20 23 26 26 31


100 82.4 85.7 100 100 82.4


2008 2009 2010 2011 2012 2013


10 11 13 11 14 14


0.24％ 0.27％ 0.31％ 0.26％ 0.35％ 0.36％






2008 2009 2010 2011 2012 2013

Actualworkinghours

2054.4 1969.3 2019.2 2019.5 2008.5 2009.1


2008 2009 2010 2011 2012 2013


13.9 14.2 13.1 12.8 12.7 12.8


2008 2009 2010 2011 2012 2013


Male 19 18 25 34 36 53

Female 27 28 22 29 31 33


Male 1 2 0 2 2 0

Female 1 1 0 1 0 0


9 20 23 26 27 32

Male 0 0 0 0 1 1

Female 9 20 23 26 26 31


100 82.4 85.7 100 100 82.4


2008 2009 2010 2011 2012 2013


10 11 13 11 14 14


0.24％ 0.27％ 0.31％ 0.26％ 0.35％ 0.36％






2008 2009 2010 2011 2012 2013

Actualworkinghours

2054.4 1969.3 2019.2 2019.5 2008.5 2009.1


2008 2009 2010 2011 2012 2013


13.9 14.2 13.1 12.8 12.7 12.8


2008 2009 2010 2011 2012 2013


Male 19 18 25 34 36 53

Female 27 28 22 29 31 33


Male 1 2 0 2 2 0

Female 1 1 0 1 0 0


9 20 23 26 27 32

Male 0 0 0 0 1 1

Female 9 20 23 26 26 31


100 82.4 85.7 100 100 82.4

■ Annual paid holidays taken (per employee)（Showa Denko K.K.）

2008 2009 2010 2011 2012 2013

Annual paid holidays taken 13.9 14.2 13.1 12.8 12.7 12.8

（Showa Denko K.K.）

2008 2009 2010 2011 2012 2013


Male 19 18 25 34 36 53

Female 27 28 22 29 31 33


Male 1 2 0 2 2 0

Female 1 1 0 1 0 0

Shortened working hours forchildcare/family care

9 20 23 26 27 32

Male 0 0 0 0 1 1

Female 9 20 23 26 26 31

Ratio of reinstated employees to thosewho took childcare leave

100 82.4 85.7 100 100 82.4


■ Number of new employees（Showa Denko K.K.）

2008 2009 2010 2011 2012 2013

New graduates 168 207 142 153 171 184

Male 148 172 118 136 149 159

Female 20 35 24 17 22 25

(Non-Japanese among the above) 3 7 1 4 5 7

Male 3 6 0 3 5 4

Female 0 1 1 1 0 3

Mid-career or transferred employees 228 125 49 88 60 69

Male 206 97 43 66 48 60

Female 22 28 6 22 12 9

■ Job separation rate （excluding retirement and permanent transfer）(Showa Denko K.K）

2008 2009 2010 2011 2012 2013

1.3% 0.9% 0.6% 0.8% 1.0% 1.0%

K.K.）

2008 2009 2010 2011 2012 2013

54 43 41 45 42 49

■ Ratio of reemployed employees（Showa Denko K.K.）

2008 2009 2010 2011 2012 2013

79% 80% 84% 86% 83% 88%

■ Number and percentage of unionized Employees（Showa DenkoK.K）

2008 2009 2010 2011 2012 2013

Number of unionized Employees 3348 3291 3014 3281 3106 3092

Percentage of unionizedEmployees

81.7% 81.5% 71.5% 78.7% 78.6% 78.9%

■ Trend of number of our patent applications in Japan and abroad（Showa Denko K.K）

2009 2010 2011 2012

Number of applications in Japan (Showa Denko) 446 434 362 325

Number of global applications (Showa Denko) 209 184 176 179

Global application ratio to domestic applications(Showa Denko)

47% 42% 49% 55%

Global application ratio to domestic applications (Allapplication)

25% 27% 30%

Number of new employees（Showa Denko K.K.）

2008 2009 2010 2011 2012 2013

New graduates 168 207 142 153 171 184

Male 148 172 118 136 149 159

Female 20 35 24 17 22 25

　 (Non-Japaneseamong the above)

3 7 1 4 5 7

Male 3 6 0 3 5 4

Female 0 1 1 1 0 3

Mid-career ort ransferred employees

228 125 49 88 60 69

Male 206 97 43 66 48 60

Female 22 28 6 22 12 9

Job separat ion rate （excluding ret i rement and permanent t ransfe r）(Showa Denko K.K.）

2008 2009 2010 2011 2012 2013

1.3% 0.9% 0.6% 0.8% 1.0% 1.0%

Number of job separat ion （excluding ret i rement and permanent t ransfe r）(Showa Denko K.K.）

2008 2009 2010 2011 2012 2013

54 43 41 45 42 49

Rat io of reemployed employees（Showa Denko K.K.）

2008 2009 2010 2011 2012 2013

79% 80% 84% 86% 83% 88%

Number and percentage of unionized employees （Showa Denko K.K.）

2008 2009 2010 2011 2012 2013

Number ofunionizedEmployees

3348 3291 3014 3281 3106 3092

Percentage ofunionizedEmployees

81.7% 81.5% 71.5% 78.7% 78.6% 78.9%

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2008 2009 2010 2011 2012 2013

New graduates 168 207 142 153 171 184

Male 148 172 118 136 149 159

Female 20 35 24 17 22 25


3 7 1 4 5 7

Male 3 6 0 3 5 4

Female 0 1 1 1 0 3


228 125 49 88 60 69

Male 206 97 43 66 48 60

Female 22 28 6 22 12 9


2008 2009 2010 2011 2012 2013

1.3% 0.9% 0.6% 0.8% 1.0% 1.0%


2008 2009 2010 2011 2012 2013

54 43 41 45 42 49


2008 2009 2010 2011 2012 2013

79% 80% 84% 86% 83% 88%


2008 2009 2010 2011 2012 2013


3348 3291 3014 3281 3106 3092


81.7% 81.5% 71.5% 78.7% 78.6% 78.9%

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2008 2009 2010 2011 2012 2013

New graduates 168 207 142 153 171 184

Male 148 172 118 136 149 159

Female 20 35 24 17 22 25


3 7 1 4 5 7

Male 3 6 0 3 5 4

Female 0 1 1 1 0 3


228 125 49 88 60 69

Male 206 97 43 66 48 60

Female 22 28 6 22 12 9


2008 2009 2010 2011 2012 2013

1.3% 0.9% 0.6% 0.8% 1.0% 1.0%


2008 2009 2010 2011 2012 2013

54 43 41 45 42 49


2008 2009 2010 2011 2012 2013

79% 80% 84% 86% 83% 88%


2008 2009 2010 2011 2012 2013


3348 3291 3014 3281 3106 3092


81.7% 81.5% 71.5% 78.7% 78.6% 78.9%

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2008 2009 2010 2011 2012 2013

New graduates 168 207 142 153 171 184

Male 148 172 118 136 149 159

Female 20 35 24 17 22 25


3 7 1 4 5 7

Male 3 6 0 3 5 4

Female 0 1 1 1 0 3


228 125 49 88 60 69

Male 206 97 43 66 48 60

Female 22 28 6 22 12 9


2008 2009 2010 2011 2012 2013

1.3% 0.9% 0.6% 0.8% 1.0% 1.0%


2008 2009 2010 2011 2012 2013

54 43 41 45 42 49


2008 2009 2010 2011 2012 2013

79% 80% 84% 86% 83% 88%


2008 2009 2010 2011 2012 2013


3348 3291 3014 3281 3106 3092


81.7% 81.5% 71.5% 78.7% 78.6% 78.9%

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2008 2009 2010 2011 2012 2013

New graduates 168 207 142 153 171 184

Male 148 172 118 136 149 159

Female 20 35 24 17 22 25


3 7 1 4 5 7

Male 3 6 0 3 5 4

Female 0 1 1 1 0 3


228 125 49 88 60 69

Male 206 97 43 66 48 60

Female 22 28 6 22 12 9


2008 2009 2010 2011 2012 2013

1.3% 0.9% 0.6% 0.8% 1.0% 1.0%


2008 2009 2010 2011 2012 2013

54 43 41 45 42 49


2008 2009 2010 2011 2012 2013

79% 80% 84% 86% 83% 88%


2008 2009 2010 2011 2012 2013


3348 3291 3014 3281 3106 3092


81.7% 81.5% 71.5% 78.7% 78.6% 78.9%

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Trend of number of our patent appl icat ions in Japan and abroad（Showa Denko K.K）

2009 2010 2011 2012

Number of appl icat ions in Japan(Showa Denko)

446 434 362 325

Number of global appl icat ions (ShowaDenko)

209 184 176 179

Global appl icat ion rat io to domest icappl icat ions (Showa Denko)

47% 42% 49% 55%

Global appl icat ion rat io to domest icappl icat ions (All appl icat ion)

25% 27% 30%

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Fair business practice and customer care


■ Results of our local and social contribution activities（Showa Denko group）

Numberof sites

Results

Education

Dispatched employees asinstructors.

1233 cases;Dispatched 1,465man-hours

Accepted interns. 18

55 eventsimplemented;Accepted 122interns.

Improvement of theenvironment around theworksites

Cleaning activities 31Conducted for91,009 hours intotal.

Promotion of arts,culture and sports

Cooperation for and grantingsubsidies to arts, culture andsports

30Spent207,936,000 yen.

Exchange with localcommunities

Holding events 288,545 residentsparticipated.

Facilities rented 18Rented for 12,499hours in total.

Offering guided plant tours 358,760 residentsvisited plants.

Communitydevelopment and socialwelfare

Harmonizing with localeconomy

24Spent 5,057,000yen.

Aluminum can recyclingactivities

21Earned 1,830,000yen.

Collaborating with NPOs andlocal organizations

8Spent 252,000yen.

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Resul ts of our local and social contr ibut ion act ivi t ies（Showa Denko Group）


Local community and social contribution

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Resul ts of our local and social contr ibut ion act ivi t ies（Showa Denko Group）


Local community and social contribution


■ 2013 Implementation status of classes-on-demand（Showa Denko group）

Workplace orcompany

Location & Event Name Contents

OitaTsurusaki Junior High School, Matsuoka ElementarySchool, Takada Elementary School, and TsurusakiElementary School

Makeaccessorieswithbiodegradableplastic andcreate fuelcell

Kawasaki

Namie High School (Main School and TsushimaBranch School), Akabane Elementary School,Sekimaeminami Elementary School, SennnanElementary School, and Kasumigaseki Visit Day forKids (METI Great Hall)

3R(Reduce,Reuse andRecycle)experimentusing plastic

Higashinagahara Kawahigashigakuen Elementary School

Three statesof matter andgeneration ofgel

Yokohama Koyasu Elementary School About battery

ChichibuKuna Elementary School and Kagemori ElementarySchool

About LEDsand magnetmade fromrear earth

Institute forAdvanced andCoreTechnology

Local residents' associationExperimentusing dry ice

HeadquartersDream and Chemistry 21 -Experiment Show for Kidsat Tokyo and Morioka

Wonder ofmagnets,Creation ofslime

2013 Implementat ion s ta tus of c lasses-on-demand（Showa Denko Group）

Workplace orcompany

Locat ion & Event Name Contents

Oita

Tsurusaki Junior High School ,Matsuoka Elementary School ,Takada Elementary School , andTsurusaki Elementary School

Makeaccessorieswithbiodegradableplast ic andcreate fuelcel l

Kawasaki

Namie High School (Main Schooland Tsushima Branch School) ,Akabane Elementary School ,Sekimaeminami Elementary School ,Sennnan Elementary School , andKasumigaseki Visi t Day for Kids(METI Great Hal l )

3R(Reduce,Reuse andRecycle)experimentusing plast ic

HigashinagaharaKawahigashigakuen ElementarySchool

Three s tatesof mat ter andgenerat ion ofgel

Yokohama Koyasu Elementary School About bat tery

ChichibuKuna Elementary School andKagemori Elementary School

About LEDsand magnetmade fromrear ear th

Inst i tute forAdvanced andCoreTechnology

Local residents ' associat ionExperimentusing dry ice

HeadquartersDream and Chemistry 21 -Experiment Show for Kids at Tokyoand Morioka

Wonder ofmagnets ,Creat ion ofsl ime


2013 Implementat ion s ta tus of c lasses-on-demand（Showa Denko Group）

Workplace orcompany

Locat ion & Event Name Contents

Oita

Tsurusaki Junior High School ,Matsuoka Elementary School ,Takada Elementary School , andTsurusaki Elementary School

Makeaccessorieswithbiodegradableplast ic andcreate fuelcel l

Kawasaki

Namie High School (Main Schooland Tsushima Branch School) ,Akabane Elementary School ,Sekimaeminami Elementary School ,Sennnan Elementary School , andKasumigaseki Visi t Day for Kids(METI Great Hal l )

3R(Reduce,Reuse andRecycle)experimentusing plast ic

HigashinagaharaKawahigashigakuen ElementarySchool

Three s tatesof mat ter andgenerat ion ofgel

Yokohama Koyasu Elementary School About bat tery

ChichibuKuna Elementary School andKagemori Elementary School

About LEDsand magnetmade fromrear ear th

Inst i tute forAdvanced andCoreTechnology

Local residents ' associat ionExperimentusing dry ice

HeadquartersDream and Chemistry 21 -Experiment Show for Kids at Tokyoand Morioka

Wonder ofmagnets ,Creat ion ofsl ime



■ 2013 Conditions of Internship Acceptance（Showa Denko group）

Plant or company Schools

OitaOita Technical High School, Tsurusaki Technical High School, OitaNational College of Technology, and Graduate School, University ofTokyo

KawasakiKeio University, Akita National College of Technology, KumamotoNational College of Technology, and National Institute ofTechnology, Hakodate College

Higashinagahara Aizu Technical High School

Isesaki Isesaki Fourth Junior High School and Isesaki Tech High School

Yokohama Department of Physics, University of Tokyo

ShiojiriMuroran Institute of Technology, Okaya Technical High School, andMatsumoto Technical High School

Omachi

Ikeda Technical High School Dual System, Chemical EngineeringDepartment, Tokyo Institute of Technology, Nagano NationalCollege of Technology, Matsumoto Technical High School, IkedaTechnical High School, and Omachikita High School

OyamaGraduate School, Tohoku University, Oyamahokuou High School,and Shimodate Technical High School

ChichibuChichibu Special-Needs School, Minano High School, and KagemoriJunior High School

Kitakata Aizu Technical High School and Kitakatatooh High School

Showa AluminumCan

Tochigi Technical High School, Shimodate Technical High School,Ariake High School, Miike Technical High School, and AriakeNational College of Technology

Union Showa Yokkaichi Technical High School

Showa Denko GasProducts

Yokkaichi Chuo Technical High School

Showa EsterindoIndonesia

SMK KIMIA PGRI SERANG, SMKN I PULO AMPEL, PPPTIK (FT.UNTIRTA), UKI ATMAJAYA, UNIVERSITAS, NUSA BANGSA

Showa DenkoCarbon

Orangeburg Calhoun Technical College

Ganzhou ZhaoriRare Earth NewMaterials

Xi'an International Studies University

Showa Denko HDMalaysia

MARA skill training institute, Polytechnic Sultan Abdul HalimMuadzam Shah, Ploytecnic Tuanku Sultanah Bahiyah, PutraUniversity,Malaysia, University Kuala Lumpur - Malaysian SpanishInstitute, University Kuala Lumpur - Malaysian Spanish Institute,University Kuala Lumpur British Malaysian Institute, UniversityMalaysia Perlis

2013 Conditions of internship acceptance（Showa Denko Group）

Plant orcompany

Schools

OitaOita Technical High School , Tsurusaki Technica lHigh School , Oita Nat ional Col lege of Technology ,and Graduate School , Universi ty of Tokyo

Kawasaki

Keio Universi ty , Akita Nat ional Col lege ofTechnology, Kumamoto National College ofTechnology, and National Inst i tute of Technology ,Hakodate Col lege


IsesakiIsesaki Fourth Junior High School and Isesaki TechHigh School

Yokohama Department of Physics , Universi ty of Tokyo

Shioj i r iMuroran Inst i tute of Technology, Okaya Technica lHigh School , and Matsumoto Technical High School

Omachi

Ikeda Technical High School Dual System, ChemicalEngineering Department , Tokyo Inst i tute o fTechnology, Nagano National College of Technology ,Matsumoto Technical High School , Ikeda Technica lHigh School , and Omachiki ta High School

OyamaGraduate School , Tohoku Universi ty , OyamahokuouHigh School , and Shimodate Technical High School

ChichibuChichibu Special-Needs School , Minano High School ,and Kagemori Junior High School

KitakataAizu Technical High School and Kitakatatooh HighSchool

ShowaAluminum Can

Tochigi Technical High School , Shimodate Technica lHigh School , Ariake High School , Miike Technica lHigh School , and Ariake Nat ional Col lege ofTechnology


Showa DenkoGas Products


ShowaEster indoIndonesia

SMK KIMIA PGRI SERANG, SMKN I PULO AMPEL,PPPTIK (FT. UNTIRTA), UKI ATMAJAYA,UNIVERSITAS, NUSA BANGSA

Showa DenkoCarbon

Orangeburg Calhoun Technical Col lege

Ganzhou Zhaor iRare Earth NewMateria ls

Xi 'an Internat ional Studies Universi ty

Showa DenkoHD Malaysia

MARA ski l l t ra ining inst i tute , Polytechnic Sul tanAbdul Hal im Muadzam Shah, Ploytecnic TuankuSultanah Bahiyah, Putra Universi ty ,Malaysia ,Universi ty Kuala Lumpur - Malaysian SpanishInst i tute , Universi ty Kuala Lumpur - MalaysianSpanish Inst i tute , Universi ty Kuala Lumpur Bri t ishMalaysian Inst i tute , Universi ty Malaysia Perl i s


2013 Conditions of internship acceptance（Showa Denko Group）

Plant orcompany

Schools

OitaOita Technical High School , Tsurusaki Technica lHigh School , Oita Nat ional Col lege of Technology ,and Graduate School , Universi ty of Tokyo

Kawasaki

Keio Universi ty , Akita Nat ional Col lege ofTechnology, Kumamoto National College ofTechnology, and National Inst i tute of Technology ,Hakodate Col lege


IsesakiIsesaki Fourth Junior High School and Isesaki TechHigh School

Yokohama Department of Physics , Universi ty of Tokyo

Shioj i r iMuroran Inst i tute of Technology, Okaya Technica lHigh School , and Matsumoto Technical High School

Omachi

Ikeda Technical High School Dual System, ChemicalEngineering Department , Tokyo Inst i tute o fTechnology, Nagano National College of Technology ,Matsumoto Technical High School , Ikeda Technica lHigh School , and Omachiki ta High School

OyamaGraduate School , Tohoku Universi ty , OyamahokuouHigh School , and Shimodate Technical High School

ChichibuChichibu Special-Needs School , Minano High School ,and Kagemori Junior High School

KitakataAizu Technical High School and Kitakatatooh HighSchool

ShowaAluminum Can

Tochigi Technical High School , Shimodate Technica lHigh School , Ariake High School , Miike Technica lHigh School , and Ariake Nat ional Col lege ofTechnology


Showa DenkoGas Products


ShowaEster indoIndonesia

SMK KIMIA PGRI SERANG, SMKN I PULO AMPEL,PPPTIK (FT. UNTIRTA), UKI ATMAJAYA,UNIVERSITAS, NUSA BANGSA

Showa DenkoCarbon

Orangeburg Calhoun Technical Col lege

Ganzhou Zhaor iRare Earth NewMateria ls

Xi 'an Internat ional Studies Universi ty

Showa DenkoHD Malaysia

MARA ski l l t ra ining inst i tute , Polytechnic Sul tanAbdul Hal im Muadzam Shah, Ploytecnic TuankuSultanah Bahiyah, Putra Universi ty ,Malaysia ,Universi ty Kuala Lumpur - Malaysian SpanishInst i tute , Universi ty Kuala Lumpur - MalaysianSpanish Inst i tute , Universi ty Kuala Lumpur Bri t ishMalaysian Inst i tute , Universi ty Malaysia Perl i s



■ 2013 State of Participation in Area Cleaning Activities（Showa Denko group）

Plant orcompany

Cleaning activities

Kawasaki Tajima Unified Cleanup Day

TokuyamaNishikigawa basin cleaning activities, Marine Memorial Day cleaningactivities, Hirano area cleaning volunteers, and irrigation cooperationforestry weed mowing volunteers

Isesaki Niragawa Cleanup Event

Yokohama My Town Kanagawa manner violations eradication strategy

Shiojiri Clean Shiojiri

OmachiLake Kizaki cleaning sponsored by Lake Kizaki Fishermen's CooperativeAssociation, Lake Nakatsuna sponsored by Lake Aoki Fishermen'sCooperative Association

OyamaWatarase Retarding Basin cleaning strategy, all-around cleaning aroundthe plant, Oyama Summer Festival 2013 venue cleaning

Ichihara All -around city cleaning

Headquarters Minato Cleanup Campaign

ShowaAluminumCan (OyamaPlant)

Oyama Summer Festival 2013 Venue cleaning

SHOKO Kamimachi Cleanup Day

Showa DenkoCarbon

United Way Day of Caring

2013 State of par t ic ipat ion in area cleaning act ivi t ies（Showa Denko Group）


2013 State of par t ic ipat ion in area cleaning act ivi t ies（Showa Denko Group）



■ Past records of aluminum can recycle activity（Showa Denko group）

Plant or company Donation receiver

Oita Donation to Shinyukai Handicapped People Work Support Center

KawasakiDonation to Kawasaki Health and Welfare Division (to LongevitySociety Welfare Promotion Fund)

TokuyamaDonated the profit from aluminum recycling to the ShunanSocial Welfare Council

HigashinagaharaDonated a high-pressure washer and large fan to a welfareinstitution.

Isesaki Donated book purchase money to Isesaki Citizen Plaza

YokohamaDonated all the profit to Kanagawa Shimbun Public Welfare andCulture Organization

Shiojiri Donated all the profit to Shiojiri City Social Welfare Council .

Omachi Omachi City Social Welfare Council

Oyama Donation to Donguri Fund of Oyama Welfare Association

Hikone Donation to Social Welfare Council

Chichibu Donation to Chichibu City Social Welfare Council

Showa Denko HDYamagata

Donated all the profit to Higashine City Welfare Council

Showa AluminumCan(Headquarters)

Donation to Minato Ward Social Welfare Council

Showa AluminumCan(Hikone Plant)

SDK donated the profit to Social Welfare Council in Hikone areaon December 18.

Union Showa Donation to i-project, a social welfare corporation

Showa Denko Kenso Donation to neighbor elementary schools with SDC

Tohoku MetalChemical

Donation to Iwaki City Social Welfare Promotion Fund

Past records of a luminum can recycle act ivi ty（Showa Denko Group）

Plant or company Donat ion receiver

OitaDonat ion to Shinyukai Handicapped People WorkSupport Center

KawasakiDonat ion to Kawasaki Heal th and Welfare Divis ion(to Longevi ty Society Welfare Promotion Fund)

TokuyamaDonated the prof i t f rom aluminum recycl ing to theShunan Social Welfare Counci l

HigashinagaharaDonated a high-pressure washer and large fan to awelfare inst i tut ion.

IsesakiDonated book purchase money to Isesaki Ci t izenPlaza

YokohamaDonated al l the prof i t to Kanagawa Shimbun Publ icWelfare and Culture Organizat ion

Shioj i r iDonated al l the prof i t to Shioj i r i Ci ty SocialWelfare Counci l .

Omachi Omachi Ci ty Social Welfare Counci l

OyamaDonat ion to Donguri Fund of Oyama WelfareAssociat ion

Hikone Donat ion to Social Welfare Counci l

Chichibu Donat ion to Chichibu City Social Welfare Counci l


Donated al l the prof i t to Higashine City WelfareCounci l


Donat ion to Minato Ward Social Welfare Counci l


SDK donated the prof i t to Social Welfare Counci lin Hikone area on December 18.

Union Showa Donat ion to i -project , a social welfare corporat ion

Showa DenkoKenso

Donat ion to neighbor e lementary schools with SDC


Donat ion to Iwaki Ci ty Social Welfare PromotionFund


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Past records of a luminum can recycle act ivi ty（Showa Denko Group）

Plant or company Donat ion receiver

OitaDonat ion to Shinyukai Handicapped People WorkSupport Center

KawasakiDonat ion to Kawasaki Heal th and Welfare Divis ion(to Longevi ty Society Welfare Promotion Fund)

TokuyamaDonated the prof i t f rom aluminum recycl ing to theShunan Social Welfare Counci l

HigashinagaharaDonated a high-pressure washer and large fan to awelfare inst i tut ion.

IsesakiDonated book purchase money to Isesaki Ci t izenPlaza

YokohamaDonated al l the prof i t to Kanagawa Shimbun Publ icWelfare and Culture Organizat ion

Shioj i r iDonated al l the prof i t to Shioj i r i Ci ty SocialWelfare Counci l .

Omachi Omachi Ci ty Social Welfare Counci l

OyamaDonat ion to Donguri Fund of Oyama WelfareAssociat ion

Hikone Donat ion to Social Welfare Counci l

Chichibu Donat ion to Chichibu City Social Welfare Counci l


Donated al l the prof i t to Higashine City WelfareCounci l


Donat ion to Minato Ward Social Welfare Counci l


SDK donated the prof i t to Social Welfare Counci lin Hikone area on December 18.

Union Showa Donat ion to i -project , a social welfare corporat ion

Showa DenkoKenso

Donat ion to neighbor e lementary schools with SDC


Donat ion to Iwaki Ci ty Social Welfare PromotionFund


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Top of page

Power use rates by source (FY 2013)（Showa Denko K.K.）




・Omachi Plant ・Kawasaki Plant

・Tatsuno Plant ・Oita Complex

・Higashinagahara Plant ・Isesaki Plant

・Dichloromethane ・1,3-Butadiene

・Benzene ・Acrylonitrile

・Acetaldehyde ・Chloroform

・Tetrachloroethylene ・Formaldehyde

・Trichloroethylene

■ Change in discharged amounts of

substances with atmospheric impact(Showa

Denko K.K.)

■ Change in discharged amounts of

substances with water quality impact(Showa

Denko K.K.)

Investment in the environment (cumulative

total from 1990) (Showa Denko K.K.)

Investment in safety and disaster prevention

(cumulative total from 1990) (Showa DenkoK.K.)

Human Rights Corporate Ethics and Compliance Labor Practices

Fair Business Practice and Customer Care Local Community and Social Contribution

Environmental conservation Reducing Chemical Substance Discharge

Showa Denko Group companies outside Japan Security and Disaster Prevention

Occupational health and safety Environmental accounting Quality Assurance

■ Total hours of human rights education（Showa Denko group）

2012 2013

(hours) 4,680.0 8,834.6

For the extent of the data collection, please refer to the “List of data collection boundaries .

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■ Number of requests for consultation received by the Corporate Ethics Hotline (Showa Denko Group)

2012 2013

(Number of requests for consultation) 32 41

For the extent of the data collection, please refer to the “ List of data collection boundaries .

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■ Percentage of handicapped employees（Showa Denko K.K.）

2008 2009 2010 2011 2012 2013

1.92% 1.87% 1.81% 2.01% 2.28% 2.34%

■ Number of employees on consolidated basis

2008 2009 2010 2011 2012 2013

Total number of employees in

Japan on consolidated basis6,246 6,449 6,101 6,031 5,802 5,905

Total number of all overseas

employees on consolidated basis496 575 566 588 599 618

Total number of all overseas

employees on consolidated basis5,510 5,115 5,496 5,511 4,088 4,329

Total number of overseas female

employees on consolidated basis1,695 1,625 1,638 1,663 1,239 1,287

■ Number of female managers and its ratio（Showa Denko K.K.）

2008 2009 2010 2011 2012 2013

Number of female managers 10 11 13 11 14 14

female managers ratio 0.24 ％ 0.27 ％ 0.31 ％ 0.26 ％ 0.35 ％ 0.36 ％

■ The average age（Showa Denko K.K）39.5 (as of December, 2013)

■ The average length of continuous employment（Showa Denko K.K）16.7 years (as of Desember, 2013)

■ The average annual wage（Showa Denko K.K）6,561,464 yen (as of Desember, 2013)

■ The average overtime work per month（Showa Denko K.K）17.7 hours (as of Desember, 2013)

■ Trends in working hours（Showa Denko K.K.）

2008 2009 2010 2011 2012 2013

Actual working hours 2054.4 1969.3 2019.2 2019.5 2008.5 2009.1

■ Annual paid holidays taken (per employee)（Showa Denko K.K.）

2008 2009 2010 2011 2012 2013

Annual paid holidays taken 13.9 14.2 13.1 12.8 12.7 12.8

■ Number of employees who took the advantage of the work -life balance support programs（Showa Denko K.K）

2008 2009 2010 2011 2012 2013


Male 19 18 25 34 36 53

Female 27 28 22 29 31 33


Male 1 2 0 2 2 0

Female 1 1 0 1 0 0

Shortened working hours for

childcare/family care9 20 23 26 27 32

Male 0 0 0 0 1 1

Female 9 20 23 26 26 31

Ratio of reinstated employees to those

who took childcare leave100 82.4 85.7 100 100 82.4

■ Number of new employees（Showa Denko K.K.）

2008 2009 2010 2011 2012 2013

New graduates 168 207 142 153 171 184

Male 148 172 118 136 149 159

Female 20 35 24 17 22 25

(Non-Japanese among the above) 3 7 1 4 5 7

Male 3 6 0 3 5 4

Female 0 1 1 1 0 3

Mid -career or transferred employees 228 125 49 88 60 69

Male 206 97 43 66 48 60

Female 22 28 6 22 12 9

■ Job separation rate （excluding retirement and permanent transfer）(Showa Denko K.K）

2008 2009 2010 2011 2012 2013

1.3% 0.9% 0.6% 0.8% 1.0% 1.0%

■ Number of job separation（excluding retirement and permanent transfer）(Showa Denko K.K.）

2008 2009 2010 2011 2012 2013

54 43 41 45 42 49

■ Ratio of reemployed employees（Showa Denko K.K.）

2008 2009 2010 2011 2012 2013

79% 80% 84% 86% 83% 88%

■ Number and percentage of unionized Employees（Showa DenkoK.K）

2008 2009 2010 2011 2012 2013

Number of unionized Employees 3348 3291 3014 3281 3106 3092

Percentage of unionized

Employees81.7% 81.5% 71.5% 78.7% 78.6% 78.9%

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■ Trend of number of our patent applications in Japan and abroad （Showa Denko K.K）

2009 2010 2011 2012

Number of applications in Japan (Showa Denko) 446 434 362 325

Number of global applications (Showa Denko) 209 184 176 179

Global application ratio to domestic applications

(Showa Denko)47% 42% 49% 55%

Global application ratio to domestic applications (All application) 25% 27% 30%

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■ Results of our local and social contribution activities（Showa Denko group）

Number

of sitesResults

Education

Dispatched employees as

instructors.12

33 cases;

Dispatched 1,465

man -hours

Accepted interns. 18

55 events

implemented;

Accepted 122

interns.

Improvement of the

environment around the

worksites

Cleaning activities 31

Conducted for

91,009 hours in

total.

Promotion of arts,

culture and sports

Cooperation for and granting

subsidies to arts, culture and

sports

30Spent

207,936,000 yen.

Exchange with local

communities

Holding events 288,545 residents

participated.

Facilities rented 18Rented for 12,499

hours in total.

Offering guided plant tours 358,760 residents

visited plants.

Community

development and social

welfare

Harmonizing with local

economy24

Spent 5,057,000

yen.

Aluminum can recycling

activities21

Earned 1,830,000

yen.

Collaborating with NPOs and

local organizations8

Spent 252,000

yen.

For the extent of the data collection, please refer to the “List of data collection boundaries.

■ 2013 Implementation status of classes -on-demand（Showa Denko group）

Workplace or

companyLocation & Event Name Contents

Oita

Tsurusaki Junior High School, Matsuoka Elementary

School, Takada Elementary School, and Tsurusaki

Elementary School

Make

accessories

with

biodegradable

plastic and

create fuel

cell

Kawasaki

Namie High School (Main School and Tsushima

Branch School), Akabane Elementary School,

Sekimaeminami Elementary School, Sennnan

Elementary School, and Kasumigaseki Visit Day for

Kids (METI Great Hall)

3R(Reduce,

Reuse and

Recycle)

experiment

using plastic

Higashinagahara Kawahigashigakuen Elementary School

Three states

of matter and

generation of

gel

Yokohama Koyasu Elementary School About battery

ChichibuKuna Elementary School and Kagemori Elementary

School

About LEDs

and magnet

made from

rear earth

Institute for

Advanced and

Core

Technology

Local residents' associationExperiment

using dry ice

HeadquartersDream and Chemistry 21 -Experiment Show for Kids

at Tokyo and Morioka

Wonder of

magnets,

Creation of

slime


■ 2013 Conditions of Internship Acceptance（Showa Denko group）

Plant or company Schools

Oita

Oita Technical High School, Tsurusaki Technical High School, Oita

National College of Technology, and Graduate School, University of

Tokyo

Kawasaki

Keio University, Akita National College of Technology, Kumamoto

National College of Technology, and National Institute of

Technology, Hakodate College


Isesaki Isesaki Fourth Junior High School and Isesaki Tech High School

Yokohama Department of Physics, University of Tokyo

ShiojiriMuroran Institute of Technology, Okaya Technical High School, and

Matsumoto Technical High School

Omachi

Ikeda Technical High School Dual System, Chemical Engineering

Department, Tokyo Institute of Technology, Nagano National

College of Technology, Matsumoto Technical High School, Ikeda

Technical High School, and Omachikita High School

OyamaGraduate School, Tohoku University, Oyamahokuou High School,

and Shimodate Technical High School

ChichibuChichibu Special -Needs School, Minano High School, and Kagemori

Junior High School

Kitakata Aizu Technical High School and Kitakatatooh High School

Showa Aluminum

Can

Tochigi Technical High School, Shimodate Technical High School,

Ariake High School, Miike Technical High School, and Ariake

National College of Technology


Showa Denko Gas

ProductsYokkaichi Chuo Technical High School

Showa Esterindo

Indonesia

SMK KIMIA PGRI SERANG, SMKN I PULO AMPEL, PPPTIK (FT.

UNTIRTA), UKI ATMAJAYA, UNIVERSITAS, NUSA BANGSA

Showa Denko

CarbonOrangeburg Calhoun Technical College

Ganzhou Zhaori

Rare Earth New

Materials

Xi'an International Studies University

Showa Denko HD

Malaysia

MARA skill training institute, Polytechnic Sultan Abdul Halim

Muadzam Shah, Ploytecnic Tuanku Sultanah Bahiyah, Putra

University,Malaysia, University Kuala Lumpur - Malaysian Spanish

Institute, University Kuala Lumpur - Malaysian Spanish Institute,

University Kuala Lumpur British Malaysian Institute, University

Malaysia Perlis


■ 2013 State of Participation in Area Cleaning Activities（Showa Denko group）

Plant or

companyCleaning activities

Kawasaki Tajima Unified Cleanup Day

Tokuyama

Nishikigawa basin cleaning activities, Marine Memorial Day cleaning

activities, Hirano area cleaning volunteers, and irrigation cooperation

forestry weed mowing volunteers

Isesaki Niragawa Cleanup Event

Yokohama My Town Kanagawa manner violations eradication strategy

Shiojiri Clean Shiojiri

Omachi

Lake Kizaki cleaning sponsored by Lake Kizaki Fishermen's Cooperative

Association, Lake Nakatsuna sponsored by Lake Aoki Fishermen's

Cooperative Association

OyamaWatarase Retarding Basin cleaning strategy, all -around cleaning around

the plant, Oyama Summer Festival 2013 venue cleaning

Ichihara All -around city cleaning

Headquarters Minato Cleanup Campaign

Showa

Aluminum

Can (Oyama

Plant)

Oyama Summer Festival 2013 Venue cleaning

SHOKO Kamimachi Cleanup Day

Showa Denko

CarbonUnited Way Day of Caring


■ Past records of aluminum can recycle activity（Showa Denko group）

Plant or company Donation receiver

Oita Donation to Shinyukai Handicapped People Work Support Center

KawasakiDonation to Kawasaki Health and Welfare Division (to Longevity

Society Welfare Promotion Fund)

TokuyamaDonated the profit from aluminum recycling to the Shunan

Social Welfare Council

HigashinagaharaDonated a high-pressure washer and large fan to a welfare

institution.

Isesaki Donated book purchase money to Isesaki Citizen Plaza

YokohamaDonated all the profit to Kanagawa Shimbun Public Welfare and

Culture Organization

Shiojiri Donated all the profit to Shiojiri City Social Welfare Council.

Omachi Omachi City Social Welfare Council

Oyama Donation to Donguri Fund of Oyama Welfare Association

Hikone Donation to Social Welfare Council

Chichibu Donation to Chichibu City Social Welfare Council

Showa Denko HD

YamagataDonated all the profit to Higashine City Welfare Council

Showa Aluminum

Can(Headquarters)Donation to Minato Ward Social Welfare Council

Showa Aluminum

Can(Hikone Plant)

SDK donated the profit to Social Welfare Council in Hikone area

on December 18.

Union Showa Donation to i -project, a social welfare corporation

Showa Denko Kenso Donation to neighbor elementary schools with SDC

Tohoku Metal

ChemicalDonation to Iwaki City Social Welfare Promotion Fund


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■ Power use rates by source (FY 2013)（Showa Denko K.K.）

■ Discharged amounts of greenhouse gases

FY1990（Reference year ）

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

Showa Denko K.K.

CO2 (energy source origin)（kt-CO2）CO2 (non-energy source origin)（kt-CO2）5 GHGs other than CO2（kt-CO2）

2,40188

407

2,284111358

2,045111267

2,07199

127

2,04795

103

1,8958959

2,038110

29

Total （kt-CO 2） 2,897 2,753 2,423 2,297 2,245 2,043 2,177

Showa Denko groupe

CO2 (energy source origin)（kt-CO2）CO2 (non-energy source origin)（kt-CO2）CO5 GHGs other than CO2（kt-CO2）

48300

4110

18

3890

17

3830

52

3743

38

4200

33

4450

22

Total （kt-CO 2） 483 429 406 435 415 453 * 467

TotalCO2 (energy source origin)（kt-CO2）CO2 (non-energy source origin)（kt-CO2）CO5 GHGs other than CO2（kt-CO2）

2,88488

407

2,695111376

2,434111284

2,45499

179

2,42198

141

2,3158992

2,483110

51

* This datum is a corrected one, which was “448” in the CSR Report 2013.


■ Transportation sector's CO2 emissions and energy consumption rate (Showa Denko K.K.)

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

Transportation sector's

CO 2 emissions （kt ）29.8 26.2 33.1 32.4 27.5 29.3

Unit energy consumption

for tranceport(crude oil

equivalent)

（Kl per million ton -

km ）

20.2 20.9 22.5 21.7 22.2 21.8

■ Freight ton -km （Showa Denko K.K. ）

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

（million ton -km ） 550 470 551 561 467 505

■ FY2013 ratios for use of various modes of transport（Showa Denko K.K.）

■ Trend of electric power used at the Head Office

FY2010 FY2011 FY2012 FY2013

Million Wh 1,302 1,050 1,042 967

■ The amount of water used

2008 2009 2010 2011 2012 2013

Showa Denko K.K. （） 71.21 69.45 67.21 64.98 61.46 58.25

Showa Denko group in

Japan （）－－－－ 3.66 3.47


■ Wastewater volume

2009 2010 2011 2012 2013

Showa Denko K.K. （thousand t ） 28,067 30,117 33,914 32,282 28,667

Showa Denko group in

Japan （thousand t ）－－－ 3,084 4,089


■ The amount of industrial waste discharge

2011 2012 2013

Showa Denko K.K. （t） 35,143 26,060 22,912

Showa Denko group in Japan（t）－ 8,441 8,668


■ Final landfill volumes of industrial waste

2008 2009 2010 2011 2012 2013

Showa Denko K.K. （t） 1,717 1,632 2,390 1,932 1,850 1,087

Showa Denko group in Japan（t） 1,341 1,120 201 212 235 273


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■ Release of PRTR -listed substances

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

Into

air

Showa Denko

K.K.（ｔ）301 254 273 317 231 198

Showa Denko

group in

Japan （ｔ）－－－－ 61 175

Into

water

Showa Denko

K.K.（ｔ）44 30 43 55 105 25

Showa Denko

group in

Japan （ｔ）－－－－ 0 1

TotalShowa Denko

K.K.（ｔ）345 284 365 381 336 223

Showa Denko

group in

Japan （ｔ）90 69 62 61 61 176


■ PRTR -listed substances released and transferred(Showa Denko K.K.)

■ Emission of PRTR -listed substances at respective sites in fiscal 2013（Showa Denko K.K.）

・Oyama Plant

■ Total amounts released of harmful atmospheric pollutants（Showa Denko K.K.）

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

（t） 62 46 32 28 21 17

■ FY 2013 Emissions of each toxic atmospheric pollutant（Showa Denko K.K.）

■ Change in discharged amounts of substances with atmospheric impact (Showa Denko K.K.)

2008 2009 2010 2011 2012 2013

SOx （t） 631 494 464 457 453 398

NOx （t） 1,877 1,389 1,285 1,238 966 1,267

Soot and dust （t） 155 94 132 153 174 166

■ Discharged amounts of substances with water quality impact （Showa Denko K.K.)

2008 2009 2010 2011 2012 2013

COD（t） 501 433 444 386 365 380

Total nitrogen （t） 677 574 574 502 419 458

Total phosphorus （t） 13 10 12 16 13 10

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2013

Discharged amounts of greenhouse gases (kt -CO 2 ) 475

The amount of water used（） 4.76

Wastewater volume(kt) 2,117

Final landfill volumes of industrial waste（t） 3,781


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■ Number of incidents resulting in lost -time injuries（Showa Denko group）

2008 2009 2010 2011 2012 2013

lost -time injuries 5 4 2 2 2 3


■ Frequency rate of lost -time injuries

2008 2009 2010 2011 2012 2013

Showa Denko K.K. 0.34 0.34 0.1 0.21 0 0.12

Showa Denko Group company* 0.34 0.29 0.14 0.13 0.14 0.22

■ Health related seminars（Showa Denko K.K.）

Category FrequencyTotal number of

participants


Seminars on lifestyle -related diseases and

cancer7 230




Total 66 2,154

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■ Environmental accounting (million yen)

Capital

investmentExpenses

Cost within

business site

Pollution

prevention

Capital investments and

expenses associated with

prevention of

atmospheric/water/soil

pollution, noise, vibration,

odor, etc.

1,393 335

Global

environmental

protection



energy conservation and

combating global warming

and ozone-layer depletion

1,872 814

Resource

recycling



resource conservation and

waste treatment

2,936 1,655

Upstream and

downstream

costs

Costs associated with

reducing environmental

impact in business

operations upstream and

downstream, including

green purchasing and

recycling of products and

packaging

0 12

Administrative

costs

Administrative costs

relating to environmental

conservation, including

environmental issues

training, introduction of

environmental management

systems, and environmental

impact evaluations

11 509

R & D costs

Costs associated with

research and development

of environment friendly

products and technologies

382 0

Community

outreach

costs


costs for local community

outreach activities not

directly linked to business

operations, such as

environmental conservation

projects in communities,

dialogue with residents,

and plant tours

0 4

Other

Compensation for health

damages resulting from

environmental pollution,

etc.

3 320

Total 6,597 3,649

■ Reducing environmental impact

1990 2013

SOx 3,698 ｔ 398 ｔ

NOx 3,522 ｔ 1,267t

Soot and dust 283 ｔ 166t

COD 786 ｔ 380t

Total nitrogen 607 ｔ 458t

Total phosphorus 51 ｔ 10t

Landfill disposal 19,723 ｔ 1,087t

■ Economic benefits (million yen / year)

Energy conservation 833

Resource recycling 557

Waste reduction 76

Other 0

Total 1,466

■ Trends in annual numbers of complaints

(With a score of 100 representing the number of claims in 2006) （Showa Denko K.K.）

Human Rights


Labor Practices




Reducing Chemical Substance Discharge

Showa Denko Group companies outside Japan

Security and Disaster Prevention

Ocupational Safty and Health

Scope of Group companies (As of December 2013):Underlined companies are those added to the scope of industrial accident statist ics in Fiscal2011.): Tsurusaki Kyodo Doryoku K.K., Showa Denko Ceramics Co., Ltd.(Toyama), Shiojir i ShowaCo. Ltd. , Showa Denko Packaging Co., Ltd.(Hikone and Isehara)、Showa Aluminum Can Corp. , ShowaDenko Sakai Aluminum Co., Ltd. , Showa Denko Electronics K.K., Showa Denko Kenzai K.K., UnionShowa K.K., Niigata Showa K.K., Showa Aluminum Can Recycling Center, HIPACK CO.,LTD., ShowaDenko Gas Products Co., Ltd. , Clean- S Showa K.K., Nippon Polytech Corp.,KANAE CHEMICALS Co.,Ltd. , Showa Denko Kenso K.K., Tohoku Metal Chemical Co., Ltd. , Nagoya Kenmazai Kogyo K.K.(Nagoya and Shiojiri) , Tokyo Aluminum Wire Corporation(to March 31, 2013), Showa Denko HDYamagata K.K., and Fuyo Perli te Co., Ltd.

※

Environmental Accounting

*Some of the amounts above are estimated.

Quality Assurance

Discharged amounts of greenhouse gases

* This datum is a corrected one, which was “448” in the CSR Report 2013.


Transportat ion sector 's CO 2 emissions and energy consumption rate (Showa Denko K.K.)

Freight ton-km（Showa Denko K.K.）

FY2013 rat ios for use of var ious modes of t ransport（Showa Denko K.K.）

Trend of e lectr ic power used at the Head Office

The amount of water used


■ Discharged amounts of greenhouse gases

FY1990（Reference year）

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

Showa Denko K.K.

CO2 (energy source origin)（kt-CO2）CO2 (non-energy source origin)（kt-CO2）

CO2 (non-energy source origin)（kt-CO2）

CO2 (non-energy source origin)（kt-CO2）

5 GHGs other than CO2（kt-CO2）

2,40188

407

2,284111358

2,045111267

2,07199

127

2,04795

103

1,8958959

2,038110

29

Total（kt-CO2） 2,897 2,753 2,423 2,297 2,245 2,043 2,177

Showa DenkoGroup

CO2 (energy source origin)（kt-CO2）

5 GHGs other than CO2（kt-CO2）

48300

4110

18

3890

17

3830

52

3743

38

4200

33

4450

22

Total（kt-CO2） 483 429 406 435 415 453* 467

TotalCO2 (energy source origin)（kt-CO2）

5 GHGs other than CO2 （kt-CO2）

2,88488

407

2,695111376

2,434111284

2,45499

179

2,42198

141

2,3158992

2,483110

51

■ Transportation sector's CO2 emissions and energy consumption rate (Showa Denko K.K.)

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

Transportation sector'sCO2 emissions（kt）

29.8 26.2 33.1 32.4 27.5 29.3

Unit energy consumptionfor tranceport(crude oilequivalent)（Kl per million ton-km）

20.2 20.9 22.5 21.7 22.2 21.8

■ Freight ton-km（Showa Denko K.K.）

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

（million ton-km） 550 470 551 561 467 505

■ Trend of electric power used at the Head Office

FY2010 FY2011 FY2012 FY2013

Million Wh 1,302 1,050 1,042 967

■ The amount of water used

2008 2009 2010 2011 2012 2013

Showa Denko K.K.（million m3） 71.21 69.45 67.21 64.98 61.46 58.25

Showa Denko Group inJapan（million m3）

－－－－ 3.66 3.47


.

Wastewater volume


The amount of industr ia l waste discharge

For the extent of the data col lect ion, please refer to the “List of data col lect ion boundaries.

Final landfi l l volumes of industr ia l waste


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2008 2009 2010 2011 2012 2013

Showa Denko K.K.（t） 1,717 1,632 2,390 1,932 1,850 1,087

Showa Denko Group in Japan（t） 1,341 1,120 201 212 235 273

2011 2012 2013

Showa Denko K.K.（t） 35,143 26,060 22,912

Showa Denko Group in Japan（t）－ 8,441 8,668

2009 2010 2011 2012 2013

Showa Denko K.K.（thousand t） 28,067 30,117 33,914 32,282 28,667

Showa Denko Group inJapan（thousand t）

－－－ 3,084 4,089

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Release of PRTR-l is ted substances


PRTR-l is ted substances re leased and t ransferred(Showa Denko K.K.)

Reducing chemical substance discharge

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

Intoair

Showa DenkoK.K.（ｔ）

301 254 273 317 231 198

Showa DenkoGroup inJapan（ｔ）

－－－－ 61 175

Intowater


44 30 43 55 105 25


－－－－ 0 1

Total


345 284 365 381 336 223


90 69 62 61 61 176


Emission of PRTR-l is ted substances at respect ive s i tes in FY 2013 （Showa Denko K.K.）

・Omachi Plant ・Kawasaki Plant

・Tatsuno Plant ・Oita Complex

・Higashinagahara Plant ・Isesaki Plant

・Oyama Plant

Total amounts re leased of harmful a tmospheric pol lutants（Showa Denko K.K.）■ Total amounts released of harmful atmospheric pollutants（Showa Denko K.K.）

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

（t） 62 46 32 28 21 17


・Dichloromethane ・1,3-Butadiene

・Benzene ・Acrylonitrile

・Acetaldehyde ・Chloroform

・Tetrachloroethylene ・Formaldehyde

・Trichloroethylene

FY 2013 Emissions of each toxic a tmospheric pol lutant （Showa Denko K.K.）


Change in discharged amounts of substances with atmospheric impact (Showa Denko K.K.)

Discharged amounts of substances with water qual i ty impact (Showa Denko K.K.)

2008 2009 2010 2011 2012 2013

COD（t） 501 433 444 386 365 380

Total nitrogen（t） 677 574 574 502 419 458

Total phosphorus（t） 13 10 12 16 13 10

2008 2009 2010 2011 2012 2013

SOx（t） 631 494 464 457 453 398

NOx（t） 1,877 1,389 1,285 1,238 966 1,267

Soot and dust（t） 155 94 132 153 174 166

■ Change in discharged amounts ofsubstances with atmospheric impact(ShowaDenko K.K.)

■ Change in discharged amounts ofsubstances with water quality impact(ShowaDenko K.K.)

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Number of incidents resul t ing in lost- t ime injuries（Showa Denko Group）


Frequency rate of lost- t ime injur ies

Heal th re la ted seminars（Showa Denko K.K.）

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Security and disaster prevention

Ocupational safty and health

Scope of Group companies (As of December 2013) :

Under l ined companies a re those added to the scope of indus t r ia l acc ident s ta t i s t i cs in F isca l 2011 . ) :

Tsurusaki Kyodo Doryoku K.K. , Showa Denko Ceramics Co. , L td . (Toyama) , Shio j i r i Showa Co. Ltd . ,

Showa Denko Packaging Co. , L td . (Hikone and I sehara)、Showa Aluminum Can Corp . , Showa Denko

Sakai Aluminum Co. , L td . , Showa Denko Elec t ron ics K.K. , Showa Denko Kenza i K.K. , Union Showa

K.K. , Ni iga ta Showa K.K. , Showa Aluminum Can Recycl ing Center , HIPACK CO. ,LTD. , Showa Denko

Gas Products Co. , L td . , Clean-S Showa K.K. ,Nippon Poly tech Corp . ,KANAE CHEMICALS Co. , L td . ,

Showa Denko Kenso K.K. , Tohoku Meta l Chemica l Co. , L td . , Nagoya Kenmazai Kogyo K.K. (Nagoya

and Shio j i r i ) , Tokyo Aluminum Wire Corpora t ion( to March 31 , 2013) , Showa Denko HD Yamagata

K.K. , and Fuyo Per l i t e Co. , L td .

2013

Discharged amounts of greenhouse gases (kt-CO 2 ) 475

The amount of water used (million m3) 4.76





Seminars on lifestyle -related diseases and cancer 7 230




Total 66 2,154

2008 2009 2010 2011 2012 2013

Showa Denko K.K. 0.34 0.34 0.1 0.21 0 0.12


2008 2009 2010 2011 2012 2013

lost-time injuries 5 4 2 2 2 3

A111K5468

テキストボックス

3.83*

A111K5468

テキストボックス

*This is a new datum corrected on October 31, 2014 from “476” which had been published on July 31, 2014.


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Number of incidents resul t ing in lost- t ime injuries（Showa Denko Group）


Frequency rate of lost- t ime injur ies

Heal th re la ted seminars（Showa Denko K.K.）

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Security and disaster prevention

Ocupational safty and health

Scope of Group companies (As of December 2013) :

Under l ined companies a re those added to the scope of indus t r ia l acc ident s ta t i s t i cs in F isca l 2011 . ) :

Tsurusaki Kyodo Doryoku K.K. , Showa Denko Ceramics Co. , L td . (Toyama) , Shio j i r i Showa Co. Ltd . ,

Showa Denko Packaging Co. , L td . (Hikone and I sehara)、Showa Aluminum Can Corp . , Showa Denko

Sakai Aluminum Co. , L td . , Showa Denko Elec t ron ics K.K. , Showa Denko Kenza i K.K. , Union Showa

K.K. , Ni iga ta Showa K.K. , Showa Aluminum Can Recycl ing Center , HIPACK CO. ,LTD. , Showa Denko

Gas Products Co. , L td . , Clean-S Showa K.K. ,Nippon Poly tech Corp . ,KANAE CHEMICALS Co. , L td . ,

Showa Denko Kenso K.K. , Tohoku Meta l Chemica l Co. , L td . , Nagoya Kenmazai Kogyo K.K. (Nagoya

and Shio j i r i ) , Tokyo Aluminum Wire Corpora t ion( to March 31 , 2013) , Showa Denko HD Yamagata

K.K. , and Fuyo Per l i t e Co. , L td .

2013

Discharged amounts of greenhouse gases (kt-CO 2 ) 475

The amount of water used (million m3) 4.76





Seminars on lifestyle -related diseases and cancer 7 230




Total 66 2,154

2008 2009 2010 2011 2012 2013

Showa Denko K.K. 0.34 0.34 0.1 0.21 0 0.12


2008 2009 2010 2011 2012 2013

lost-time injuries 5 4 2 2 2 3


■ Environmental accounting (million yen)

Capitalinvestment

Expenses

Cost withinbusiness site

Pollutionprevention

Capital investments andexpenses associated withprevention ofatmospheric/water/soilpollution, noise, vibration,odor, etc.

1,393 335

Globalenvironmentalprotection

Capital investments andexpenses associated withenergy conservation andcombating global warmingand ozone-layer depletion

1,872 814

Resourcerecycling

Capital investments andexpenses associated withresource conservation andwaste treatment

2,936 1,655

Upstream anddownstreamcosts

Costs associated withreducing environmentalimpact in businessoperations upstream anddownstream, includinggreen purchasing andrecycling of products andpackaging

0 12

Administrativecosts

Administrative costsrelating to environmentalconservation, includingenvironmental issuestraining, introduction ofenvironmental managementsystems, and environmentalimpact evaluations

11 509

R & D costs

Costs associated withresearch and developmentof environment friendlyproducts and technologies

382 0

Communityoutreachcosts

Environmental conservationcosts for local communityoutreach activities notdirectly linked to businessoperations, such asenvironmental conservationprojects in communities,dialogue with residents,and plant tours

0 4

Other

Compensation for healthdamages resulting fromenvironmental pollution,etc.

3 320

Total 6,597 3,649

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Environmental account ing　 (mil l ion yen)

Environmental accounting

*Some of the amounts above a re es t imated .


Investment in the environment (cumulativetotal from 1990) (Showa Denko K.K.)

Investment in safety and disaster prevention(cumulative total from 1990) (Showa Denko K.K.)

■ Trends in annual numbers of complaints (With a score of 100 representing the number of claims in 2006) （Showa Denko K.K.）

Reducing environmental impact

Economic benefi ts　 (mil l ion yen / year)

*Some of the amounts above a re es t imated .

Energy conservation 833

Resource recycling 557

Waste reduction 76

Other 0

Total 1,466

1990 2013

SOx 3,698ｔ 398ｔ

NOx 3,522ｔ 1,267t

Soot and dust 283ｔ 166t

COD 786ｔ 380t

Total nitrogen 607ｔ 458t

Total phosphorus 51ｔ 10t

Landfill disposal 19,723ｔ 1,087t

Trends in annual numbers of complaints 　 (With a score of 100 represent ing the number of c la ims in 2006)　（Showa Denko K.K.）

Quality assurance


List of Data Collection Boundaries

For the data descr ibed as “Showa Denko K.K.” or “Showa Denko only,” the boundary of thosedata is Showa Denko K.K. only.For the data descr ibed as “Showa Denko Group,” the boundary of those data includes ShowaDenko K.K. and the group companies l is ted below.

Scope of Group companies

Environmental impactindex

occupational safty

Results of our local and social contribution activitie

s

Human rights trainin

g

Corporate Ethics Hot

lineGHG emissions Others

Japan

Consolidated subsidiaries

Showa Denko Gas Products Co., Ltd.

Showa Showa Denko Ceramics Co., Ltd.(Toyama)

Showa Aluminum Can Corp.

Showa Denko Packaging Co., Ltd.

Showa Denko Kenzai K.K.

Tohoku Metal Chemical Co., Ltd.

Showa Denko HD Yamagata K.K.

Niigata Showa K.K.

Nippon Polytech Corp.

Showa Denko Kenso K.K.

Nagoya Kenmazai Kogyo K.K.

Tsurusaki Kyodo Doryoku K.K.

Other affiliated companies

Showa Denko Electronics K.K.

Tokyo Liquefied Oxygen Co., Ltd.

Shiojiri Showa Co. Ltd.

Showa Denko Sakai Aluminum K.K.

Union Showa K.K.

Showa Aluminum Can Recycling Center

HIPACK CO.,LTD.

Clean-S Showa K.K.

KANAE CHEMICALS Co., Ltd.

Tokyo Aluminum Wire Corporation（toMarch, 2014)

Fuyo Perlite Co., Ltd.

Domestic group companies not listed in the data boundary above

2companies

2 companies

34companies

Abroad

PT.Showa Esterindo Indonesia

Taiwan Showa Chemicals Manufacturing Co., Ltd.

Showa Denko Carbon, Inc.

SHOTIC (Singapore) Pte Ltd.

SHOTIC Europa Industria de Aluminio Lda.

Showa Aluminum Corpration of America

Showa Aluminum Manufacturing Philippines Corporation

Showa Denko HD Singapore Pte Ltd.

Showa Denko HD (Malaysia) Sdn.Bhd.

Showa Denko HD Trace corp.

Baotou Showa Rare Earth Hi-tech New Material Co., Ltd.

Ganzhou Zhaori Rare Earth New Materials Co., Ltd.

Showa Denko Rare-Earth Vietnam Co., Ltd.

Showa Denko (Dalian) Co., Ltd.

Group companies abroad not listed in the data boundary above

13companies

■ Scope of Group companies

Environmental impact index occupational

safty

Results of our local and socialcontributionactivities

Human rights training

Corporate EthicsHotline

GHG emissions Others

Japan


Showa Denko Gas Products Co., Ltd. ○ ○ ○ ○ ○ ○

Showa Showa Denko Ceramics Co., Ltd.(Toyama) ○ ○ ○ ○ ○ ○

Showa Aluminum Can Corp. ○ ○ ○ ○ ○ ○

Showa Denko Packaging Co., Ltd. ○ ○ ○ ○ ○ ○

Showa Denko Kenzai K.K. ○ ○ ○ ○ ○ ○

Tohoku Metal Chemical Co., Ltd. ○ ○ ○ ○ ○ ○

Showa Denko HD Yamagata K.K. ○ ○ ○ ○ ○ ○

Niigata Showa K.K. ― ○ ○ ○ ― ○

Nippon Polytech Corp. ― ○ ○ ○ ○ ○

Showa Denko Kenso K.K. ― ○ ○ ○ ― ○

Nagoya Kenmazai Kogyo K.K. ― ○ ○ ― ○ ○

Tsurusaki Kyodo Doryoku K.K. ○ ― ○ ○ ― ○


Showa Denko Electronics K.K. ○ ― ○ ○ ― ○

Tokyo Liquefied Oxygen Co., Ltd. ― ― ○ ― ○ ○

Shiojiri Showa Co. Ltd. ― ― ○ ― ― ○

Showa Denko Sakai Aluminum K.K. ― ― ○ ― ― ○

Union Showa K.K. ― ― ○ ○ ○ ○

Showa Aluminum Can Recycling Center ― ― ○ ― ― ○

HIPACK CO.,LTD. ― ― ○ ― ○ ○

Clean-S Showa K.K. ― ― ○ ― ― ○

KANAE CHEMICALS Co., Ltd. ― ― ○ ― ○ ○

Tokyo Aluminum Wire Corporation（to March, 2014) ― ― ○ ― ― ―

Fuyo Perlite Co., Ltd. ― ― ○ ○ ○ ○


2companies

2

companies34

companies

Abroad

PT.Showa Esterindo Indonesia ○ ○ ― ○ ― ―

Taiwan Showa Chemicals Manufacturing Co., Ltd. ○ ○ ― ○ ― ―

Showa Denko Carbon, Inc. ○ ○ ― ○ ― ―

SHOTIC (Singapore) Pte Ltd. ○ ○ ― ○ ― ―

SHOTIC Europa Industria de Aluminio Lda. ○ ○ ― ○ ― ―

Showa Aluminum Corpration of America ○ ○ ― ― ― ―

Showa Aluminum Manufacturing Philippines Corporation ○ ○ ― ○ ― ―

Showa Denko HD Singapore Pte Ltd. ○ ○ ― ○ ― ―

Showa Denko HD (Malaysia) Sdn.Bhd. ○ ○ ― ○ ― ―

Showa Denko HD Trace corp. ○ ○ ― ― ― ―

Baotou Showa Rare Earth Hi-tech New Material Co., Ltd. ○ ○ ― ― ― ―

Ganzhou Zhaori Rare Earth New Materials Co., Ltd. ○ ○ ― ○ ― ―

Showa Denko Rare-Earth Vietnam Co., Ltd. ○ ○ ― ― ― ―

Showa Denko (Dalian) Co., Ltd. ○ ○ ― ○ ― ―


13companies

List of Data Collection Boundaries




safty





Japan



























2companies

2

companies34

companies

Abroad
















13companies



safty





Japan



























2companies

2

companies34

companies

Abroad
















13companies


Third-party VerificationWe received the third-par ty ver i f icat ion about the quant i ta t ive data concerning our CSRperformance shown in this SHOWA DENKO CSR Report 2014 from SGS Japan Inc.

Third-par ty Verif icat ion Report

Third-party Verification

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