Basic Policy

The Denka Group handles a broad range of operations with an extensive product lineup ranging from various organic and inorganic materials to electronic materials and pharmaceuticals. Reflecting a quality policy that aligns with the Denka Group ESG Basic Policy, we are engaging in quality assurance activities encompassing this diversity, striving to satisfy quality requirements in the business fields relevant to our products and services and to meet customer needs in light of the latest social expectations.

Quality Policy (FY2022)

In accordance with the Denka Group ESG Basic Policy, we will strive to contribute to the sustainable growth of society and the environment by providing products and services that are trusted by our customers by raising quality awareness, ensuring compliance with legal regulations and product quality standards while engaging in ongoing quality improvement activities.

Regulatory Standards and Certification

Revised Food Sanitation Act

The Denka Group maintains a hygiene control system for food additives, food packaging materials and other food-related products that conforms with the mandatory Hazard Analysis and Critical Control Point (HACCP)*food hygiene control method stipulated by the 2018 partial revision of the Food Sanitation Act.

• * A food hygiene control method involving the analysis of hazard factors associated with all processes from the acquisition of raw materials to the shipment of finished products. With the goal of eliminating or minimizing said factors, HACCP is used to manage crucially important processes. HACCP also mandates that food business operators perform hazard analysis and management themselves to ensure product safety.

Compliance—Responding to Legal and Regulatory Revisions

Chemical Substances

The Denka Group constantly monitors and collects information regarding the status of legal revisions at home and abroad to ensure it is positioned to swiftly respond appropriately to the latest laws and regulations governing chemical substances. Whenever a new chemical substance-related regulation comes into effect, we ensure that all relevant business units are informed and weigh our options regarding the adoption of safer alternatives or otherwise implementing the measures necessary to maintain regulatory compliance.

Developing IT-Based Quality Management System Infrastructure

To enhance customer satisfaction, we are developing an IT-based infrastructure that supports our quality management. Encompassing an upgrade of the existing customer complaint management system, the infrastructure is expected to enhance our ability to address customer grievances and complaints. Moreover, it will help increase the sophistication of design reviews undertaken at the research, design and development stages to ensure that customer needs are promptly and accurately met while updating our system for managing the functional and quality specification documents furnished to customers at the time of delivery. In these ways, we strive to enhance the reliability and efficiency of our operations and facilitate the effective utilization of accumulated data.

Failure of the Rapid Antigen Diagnostic Test Kit for COVID 19

In November 2021, we confirmed that the some products in our QuickNaviTM-COVID-19 Ag rapid antigen diagnostic test kits for novel coronavirus antigens may have an increased false positive rate. Denka made the decision to recall all applicable products (Class II^*) in consideration of the safety of consumers. The collection and replacement work was completed by the end of March 2022, and we have received no reports of adverse health effects. We will continue to strengthen our quality assurance framework and strive to provide more reliable products and services.

• * Class II refers to situations in which the use of the product, etc., is likely to cause temporary or medically curable adverse health effects or is unlikely to cause serious adverse health effects.