Value created from dialogue with stakeholders

Responsible dialogue with stakeholders is an important process for confirming expectations regarding the Denka Group's social responsibilities, social contributions, and corporate value enhancement. This process is also stated in The Denka Group ESG Basic Policy as "Information Disclosure and Constructive Dialogue with Stakeholders." This diagram explains the significance of each dialogue and the value it creates.

Examples of Dialogue with Stakeholders

Customers

Purpose/Theme

• Companies must provide safe and high-quality products and appropriate information that satisfy customers.
• Through sincere communication with customers, we build trust.

Means

• Meetings with customers in person and online
• Provision of technical services
• Conducting customer satisfaction surveys

Establishment of quality control systems and efforts to improve customer satisfaction

Suppliers

Purpose/Theme

• By promoting open innovation and building good relationships with our business partners, we aim to achieve mutual prosperity throughout the supply chain.

Means

• Face-to-face and online interviews with suppliers
• Announcement of Partnership Building Declaration

Supply chain management

Partnership Building Declaration

Local Community

Purpose/Theme

• As a good corporate citizen, the Company actively participates in the formation of better local communities and contributes to their development.
• Companies must maintain sound relationships with politics and government and foster trust with society.

Means

• Comprehensive disaster prevention drill
• Plant tours, briefing sessions
• Community exchange and dialogue
• Participation in events
• Educational support
• Corporate citizenship activities

List of CSR Activities at Each Business Site

Denka Group Employees

Purpose/Theme

• Reflecting employee feedback, the Denka Group will promote the creation of workplaces where all people in the Denka Group can work in good health.

Means

• Plant visits and dialogue by the President
• Labor-Management Council
• Utilization of internal portal site
• Town hall meeting
• Conducting an Employee Awareness Survey
• Lunch meeting

Shareholders and investors

Purpose/Theme

• Companies actively, effectively, and fairly disclose financial and non-financial information and ensure its reliability through constructive dialogue.
• The Group will strengthen its governance system and thereby enhance corporate value as a whole.
• Meeting data with institutional investors and securities company analysts (FY2025)
  (Excluding shareholder meetings, earnings briefings, management briefings, and individual investor briefings)

  

• Number of individual/small meetings (Japan/Overseas quarterly trend)

  

• Main Themes of Dialogue, Shareholder Interests, and Disclosure Improvement Items
  • Latest information on AI products - Policy and progress of portfolio transformation
  • Management policies and measures for Phase 2 of the Management Plan "Mission 2030"
  • Capital allocation (shareholder returns, strategic investment, research and development, financial leverage, etc.)
  • Outlook for growth businesses and investment plans

Method ^※

• Holding of General Meeting of Shareholders (once a year)
  Enrich the contents of the convocation notice and other materials for the General Meeting of Shareholders, and expand the information disclosed.
  Live streaming for shareholders who cannot come to the venue on the day, and methods for exercising voting rights via the Internet using computers, etc. are also adopted.
• Holding of financial results briefing (4 times a year: 80-120 people each)
  The President and management team explain financial results and growth strategies to institutional investors and securities company analysts on a quarterly basis (a financial results briefing for the press is also held twice a year).
• Holding of individual investor briefing sessions (once a year, 44 in-person, 333 online)
  IR executive held hybrid briefing sessions for individual investors to explain management plan and business overview.
• Implementation of management briefing sessions (twice a year, 90-110 attendees each)
  The President and management team explain our management strategies, progress and issues of our major businesses to institutional investors and securities analysts. (Briefing sessions for journalists are also held twice a year.)
• Meetings with institutional investors and securities company analysts (512 in total)
  • Individual meetings and small meetings (226 in Japan, 206 overseas)
    Corporate Communications Department conducts two-way dialogues on details such as financial results and management plans in individual meetings or small meetings with institutional investors and securities company analysts.
  • SR Meeting (twice a year: 23 in Japan, 2 overseas)
    The General Affairs Department conducts dialogue with major domestic shareholders (institutional investors) on the Company's initiatives and issues in its business from the perspective of governance.
  • Top meeting (once a year: 14 participants in Japan)
    President and IR executives answer questions and hold discussions on management with major institutional investors and analysts.
  • Factory tours (twice a year: 2 locations in Japan)(19 in Japan, 1 overseas)
    Factory tours are held for institutional investors and securities company analysts to explain the features of products and each factory.
  • Overseas roadshows (twice a year: 21 participants)
    Executive in charge of IR conducts dialogues with overseas institutional investors from the Americas, Europe, Asia, etc. on our management plan, business model, R&D, shareholder returns, ESG, etc.

• ※Values are as of fiscal 2025

Feedback to management and Board of Directors

Feedback to management and Board of Directors

• Feedback shareholder opinions ascertained through dialogue to management, Board of Directors, and relevant departments
• If a matter that gathers many opinions from shareholders arises, feedback will be provided on that occasion.

Incorporation into management based on dialogue and feedback

• As an opportunity to communicate our management strategy, we will hold management briefings starting in 2025.
  (Previously, we communicated our management strategy as a topic at our financial results briefings.)
  We will hold management briefings for Phase 2 of our Management Plan "Mission 2030" in February 2026.
• We hold top meetings as opportunities for direct dialogue between the President and major institutional investors and analysts.

Board of Directors and Skill Matrix