NIPRO CORPORATION
Social Finance Framework
September 2021

Company Overview
Management Philosophy：In looking toward future as a truly global comprehensive medical manufacturer, Niprobelieves current and future responsibility to society is to develop innovative, value-added products andtechnologies that improve patient outcomes and healthcare worldwide.

Medical-Related Business The Medical-related segment deals invarious medical devices, especiallythose related to dialysis and artificialorgans.
 Sales for FY2020：JPY 347,648 million（Accounting for 76.4% of total sales）【Segment Sales】 (JPY million)

347,648

Pharmaceutical-Related BusinessPharmaPackaging Business The pharmaceutical-related segment
engages in contracted manufacturing ofa variety of pharmaceuticals, including
injectables, orally administered drugs
and external preparations.

 The PharmaPackaging segment offers
various functional materials, including
not only glass but rubber and plastics,
and formed parts made of thesematerials.

 Sales for FY2020:JPY 68,564 million（Accounting for 15.1% of total sales）

 Sales for FY2020:JPY 38,655 million（Accounting for 8.5% of total sales）【Segment Sales】 (JPY million)【Segment Sales 】 (JPY million)

70,35738,65568,564
335,767

36,217327,359

FY2018135,526

63,482FY2019FY2020FY2018FY2019FY2020FY2018FY2019FY2020Overview of Social Finance Framework①
Nipro contributes to improving the health and QOL of people around the world through socially indispensable efforts to provide a stablesupply of medical devices and pharmaceuticals. Nipro believes that these efforts will contribute to solving social issues as a social project.

For this social finance, Nipro has formulated the social finance framework in accordance with the Social Bond Principles 2021 of ICMA
（International Capital Market Association）.

In addition, as a third-party evaluation of the Social Finance Framework, Nipro has obtained a “Second Opinion" from R&I.

1. Use of proceeds
 Proceeds will be allocated to finance or refinance capital investment or R&D spending in each segment.
 The main use of proceeds is shown in the table below.
Eligible projects

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Main use of proceeds

Domestic Medical-relatedbusiness

Capital investment primarily in medical device manufacturing factories and regenerative medicine-related
facilities and R&D activities for pharmaceuticals, etc.
Examples：Install additional dialyzer production lines and renew cell culture equipment at regenerative
medicine product manufacturing facilities

Global Medical-related business

Capital investment primarily in medical device manufacturing factories
Examples：Install additional dialyzer production lines

Pharmaceutical-related business

Capital investment primarily in pharmaceutical contract manufacturing factories
Examples ： Install additional syringe formulation manufacturing equipment (to manufacture syringe
formulations for the government’s vaccine stockpiles, etc.)

PharmaPackaging business

Capital investment primarily in manufacturing factories for pharmaceutical packaging products and R&D
activities for pharmaceutical packaging products, etc.
Examples：Install new glass tubing manufacturing equipment (to manufacture vials for vaccine developers,etc.)

Overview of Social Finance Framework②
2. Process for Project Evaluation and SelectionManagement philosophy is as follows: In looking toward our future as a truly global comprehensive medical manufacturer, Nipro believes
our current and future responsibility to society is to develop innovative, value-added products and technologies that improve patient
outcomes and healthcare worldwide.

Nipro is carried out under the management philosophy of social contribution, and Nipro recognizes that these businesses contribute to thesolution of social issues and that all businesses are social.

In addition, Nipro has formulated the medium-term management plan in line with management philosophy, and are committed tocontinuing these businesses over the medium to long term. The corporate planning department of the corporate planning headquarters
collaborates with various departments within the company to create a draft of a medium-term management plan that incorporates eligible
projects. The plan is approved by the board of directors.

In the process of selection of eligible projects, based on the policies of each business formulated in the medium-term management plan,
the corporate planning department of the corporate planning headquarters evaluates and selects projects that correspond to capital
investment or R&D expenses, and obtains the approval of the Finance Officer. The selected projects are reported at the board of directors.

3. Management of Proceeds
The proceeds will be credited to a checking account in the name of Nipro and managed by the accounting department of the corporate
planning headquarters. Any payments for the eligible projects implementation will be managed by the accounting department based on
the verification and request by a department that receives invoices or other evidence documents.

The data on expenditures for the eligible projects will be extracted using internal accounting codes, and allocated and unallocatedamounts will be tracked in a reliable manner. Unallocated proceeds will be invested only in highly liquid and safe financial assets underinternal rules.

The allocation of proceeds will be confirmed by the Finance Officer annually.

4. ReportingNipro will disclose to investors the allocation of proceeds and materials that explain social outcomes. The allocation of proceeds will be
disclosed on its website and Annual Report annually.

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Reporting
1. Reporting on allocation of proceeds


The allocation of proceeds will be disclosed annually on the Nipro website. Nipro will disclose the proportion of proceeds allocated tofinancing or refinancing.

Proceeds will be allocated to finance or refinance capital investment or R&D spending in medical devices, pharmaceuticals, pharma
packaging materials manufacturing factories and regenerative medicine-related facilities.

2. Impact Reporting

Until the proceeds are fully allocated to eligible projects, Nipro will announce the following output indicators within the scope ofconfidentiality obligations as impact reporting of the eligible project on its website.
Output indicators•

Domestic Medical-related
business••

Global Medical-related
business•••

The increasing rate of medical devices
manufactured
The increasing rate of Nipro-brand generic drugs
manufactured
Cell drug manufacturing capacity

Outcome indicators•••

The increasing rate of medical devices
manufactured
The increasing rate of dialysis clinics
The number of training centers•••

The increasing rate of medical devices sold
The increasing rate of Nipro-brand generic drugs
sold
The number of cell drugs sold
The increasing rate of medical devices sold
The increasing rate of patients treated at dialysis
clinics
The number of training center users

Pharmaceutical-related
business•

The increasing rate of drugs manufactured undercontract•

The increasing rate of drugs manufactured andshipped under contract

PharmaPackaging business•

The increasing rate of products manufactured•

The increasing rate of products sold（Reference） Information disclosure about business in generalNipro discloses information about its business in general such as a medium-term management plan, annual report information andabout financial conditions such as securities reports and financial summaries on its website. https://www.nipro.co.jp/en/ir/

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Contribution to SDGs by this framework①
Eligible projects are in line with the "SDGs" advocated by the United Nations and the SDGs guidelines of the Japanese government. Withreference to ICMA's SDGs mapping, Nipro rates it to contribute to the following SDGs goals and targets.

Eligible
projects

Domestic
Medicalrelated
business

5SDGs

Efforts/Main Use of Proceeds•

Manufacture and sale of dialyzer, a medical device indispensable for life support, health improvement, andquality of life improvement of patients who require dialysis•

Manufacture and sale of a lineup of consumables, such as surgical masks, surgical rubber gloves, and tubes,
as well as blood collection tubes and antiseptics, all of which are in high demand globally during the spreadof novel coronavirus (COVID-19) or other new infectious diseases•

Manufacture and sale of own-brand generic drugs that contribute to reducing social medical costs•

Manufacture and sale of antibacterial drugs, despite their low profitability and concerns over potential supply
shortage of APIs•

Development and sale of products that can be used regardless of age or physical disability. The above
includes a lineup of PTP sheets, such as those designed so that visually impaired users can distinguishmedications, those with a blank space provided for the entry of medication instructions and date/time totake medication, and those designed for easy handling for users with difficulty with hand movement•In-house development of drug substances for some antibiotics to address concerns about future APIshortage•

Sale of a cloud-type patient monitoring system (Nipro Heart Line™) that uses ICT to enable the real-timemonitoring of patient information even at remote locations•

Sales of HN LINEⓇ , a system that solves operational issues by linking medical device information withelectronic medical records and supports work style reforms for healthcare professionals

Contribution to SDGs by this framework②Eligible
projects

GlobalMedicalrelated
business

Pharmaceu
ticalrelated
business

PharmaPackagingbusiness

6SDGs

Efforts/Main Use of Proceeds•

Manufacture and sale of dialyzer, a medical device indispensable for life support, health improvement, andquality of life improvement of patients who require dialysis•

Provision of more accessible dialysis treatment by opening dialysis clinics in urban fringe areas for patients
who live far from urban areas in emerging countries such as Latin America•

Provision of high-quality treatment by opening dialysis clinics in urban areas in Southeast Asia and Africa•

Manufacture and sale of a lineup of consumables, such as surgical masks, surgical rubber gloves, and tubes,
as well as blood collection tubes and antiseptics, all of which are in high demand globally during the spread ofnovel coronavirus (COVID-19) or other new infectious diseases•

Manufacture of contract manufacturing drugs that contribute to reducing social costs by reducing risks andimproving efficiency while promoting horizontal division of labor from drug research and development tosupply•

Manufacture and sale of products to prevent medical accidents in using medical devices. Specifically, theseinclude winged needles with a needlestick accident prevention function, syringes that can be distinguished bycolor to prevent drug mix-ups, pre-filled syringes that can reduce the risk of foreign material and bacterial
contamination and needlestick accidents, and pharmaceutical kits