Communication with Stakeholders

Communication with Stakeholders

The Group communicates with stakeholders actively through a variety of methods and opportunities. We believe that this effort contributes to the sustainable growth of the Group and increases corporate value.

Approach to Communication with Stakeholders and Main Achievements
Stakeholders Communication Policy FY2024 Results
Shareholders and Investors
We disclose information on our business performance and management policies and strategies in a timely and appropriate manner and host a wide range of briefings to cultivate a deeper understanding of the Group. In this way, we strive to build a relationship of trust with our shareholders and investors, establish an appropriate market valuation, and improve our corporate value.
  • General Shareholders' Meeting
  • Financial results briefings and conference calls for analysts and institutional investors (4 times in 2024)
  • Business briefings and plant tours for securities analysts and investors (once in 2024)
  • One-on-one meetings with analysts (about 380 times in 2024)
  • Small meetings for investors hosted by securities companies (6 times in 2024)
  • Information provided on the company website, Annual Report, etc.
Customers
The sales, development, and production departments work together to improve customer satisfaction by communicating closely with customers, identifying customer issues and needs, and responding quickly to them.
  • Day-to-day communications by sales representatives
  • Information provided on the company website, exhibitions, etc.
Suppliers
By publishing our Basic Procurement Policy and CSR Procurement Guidelines, and through fair, impartial, and transparent transactions, we will build sound, mutually beneficial relationships with our business partners and strive for mutual prosperity.
  • Day-to-day communications by the Purchasing Department
  • Supplier hotline
Local communities
We value communication with local residents, governments, and municipalities, and are actively involved in social contribution activities in the community, striving to build a relationship of trust with the local community.
  • Communication with organizations such as local governments
  • Participation in local events
Employees
In addition to disseminating information via the company magazine and intranet and conducting employee satisfaction surveys, we place importance on two-way communication between management and employees, such as by having the president visit each location to provide opportunities for the exchange of opinions.
  • Communication and consultation with labor unions
  • Information provided on the company magazine and intranet

Example of Communication with Shareholders and Investors:
Business briefings for securities analysts and investors

In December 2024, we held a new business briefing for securities analysts and investors to deepen their understanding of our new businesses. The general managers of the Business Promotion Offices and Public Relations Department attended the briefing to introduce the GaN business and the package substrate manufacturing equipment business, and this was followed by a Q&A session. More than 100 securities analysts and investors attended the event.

New business briefing
(December 2024, Shin-Etsu Chemical Head Office)

Example of Communication with Customers:
Exhibit at Health Ingredients Japan 2024

Shin-Etsu Chemical exhibited at the Health Ingredients Japan 2024 held at Tokyo Big Sight in October 2024. The Expo is targeted at R&D, quality assurance, and manufacturing engineers in the food sector.

At our exhibition booth, we showcased the properties of METOLOSE, our cellulose derivatives product that gels when heated, and offered various solutions to address the challenges of the attendees. In addition, since growing health consciousness is increasing interest in supplements, we also introduced HPMC, our coating agent for supplements, which has excellent solubility and coating properties. It was a good opportunity to show how our products are making a significant contribution to a sustainable society in the areas of food and health.

Health Ingredients Japan 2024
(October 2024, Shin-Etsu Chemical Head Office)

Example of Communication with Local Communities:
Exhibit at Echizen Manufacturing Festival 2024

A group from Shin-Etsu Chemical's Takefu Plant exhibited at the Echizen Manufacturing Festival 2024 held at Sun Dome Fukui over two days on September 13 and 14, 2024. This exhibition, which began in 1982 and is now in its 41st year, is sponsored by the Takefu Chamber of Commerce and Industry, the Echizen City Chamber of Commerce and Industry, and the Echizen City and Others Executive Committee. Approximately 130 companies and organizations set up booths to promote both traditional industries and cutting-edge technologies.

At the Shin-Etsu Chemical booth, the Takefu Plant group displayed the products they manufacture, including rare earths, rare earth magnets, silicone rubber, photomask blanks, semiconductor silicon ingot, and quartz glass. They also set up posters introducing Shin-Etsu Chemical and its products and an apparatus allowing visitors to experience the strength of the magnetic force of rare earth magnets. The visitors included many local residents and students. On the first day, visitors to the booth included many fifth graders from elementary schools across the city, who the Echizen City Board of Education had invited to help guide their future career paths.

Echizen Manufacturing Festival 2024
(September 2024, Takefu Plant)

Examples of Communication with Employees:

To achieve high productivity and sustainably improve corporate value, it is important to create a personnel system and workplace environment where all employees can feel motivated and maximize their individual capabilities. Shin-Etsu Chemical therefore aims to improve engagement so that more employees can feel motivated in their work.

Employee opinion survey

The Company aims at creating its personnel system and work environment based on communication with its employees. In 2022, to help create a more rewarding workplace, we conducted an employee opinion survey of employees working at Shin-Etsu Chemical. The survey asked about a range of topics including compliance, customer orientation, penetration of management principles, Company's future prospects, personnel system, career outlook, workload, work environment, and relationships with superiors.

The response rate was 86.5%. Analysis of the results revealed that the employees have a high level of compliance awareness. On the other hand, intergenerational differences were observed on questions such as personnel system, career outlook, and relationships with superiors, reaffirming the change in values and the importance of intergenerational communication. Based on the survey's findings and after consultation with the labor union, we expanded and revised our personnel system, including the subsidization of rent and commuting by Shinkansen bullet trains. In 2025, we launched a new initiative that utilizes organizational analysis of employee stress checks to further improve the workplace environment. In this way, we will continue our efforts to make more employees feel fulfilled in their jobs, while further developing the areas where we excel and improving areas that need improvement.

Labor-management relations

The Company engages in various dialogues with the Shin-Etsu Chemical Labor Union to promote mutual understanding between employees and management. The Central Labor Council is held once a month at the head office attended by top management. They engage in thorough discussions with the labor union regarding subjects such as management policy, overviews of individual businesses, and the personnel system. Also, each business site holds a monthly Local Labor Council with the local branch of the Shin-Etsu Chemical Labor Union.

Repeated dialogues and discussions between employees and management deepen mutual understanding and trust and ensure that staff and management can come together to carry out speedy responses to the expansion of business operations and the changing business environment.