TSE code：9913

Medium-Term
Management Plan 2025

March 25, 2024
President
Yasuchika Iwasa

1．Long-term Vision （Overall Vision）
Our Purpose

To provide unique value to our customers, who are leading
the world in manufacturing, and continue to support their
manufacturing efforts

Our Goal

To become a unique company that continues to grow andview its employees as a source of strength■Phases of Medium-Term Management Plan
Medium-Term
ManagementPlan 2022

Medium-Term
ManagementPlan 2025

Medium-Term
ManagementPlan 2028

Sustainably grow by cumulative medium-term segments, not by year.

PhasePeriod for facing thechallenge of building new
business models, whilestabilizing our financial baseStrengthen businessfoundation

Copyright (C) NIPPO LTD. All Rights Reserved.

A period for actively
promoting sales of new
products and materials
developed through the“creating the new businessmodels” phase

A period for realizing evenhigher growth in terms ofboth business scale andearnings by further
expanding business areas

Prepare for stepping up

Step up1

（reference）New Business Model＜Current＞ Business model based on customer’s inquiries

NIPPOCustomer
Add a high-value-added business model based on our ideas＜ Increase high-value-added business model through collaboration＞【NIPPO】
In-house owned
technologies andresources
Technologies, products,
and materials underresearch and development

Technologies andresources owned
by partner company＋➡

Development ofproducts, merchandise,and distribution channel
through the collaboration

True proposal-based sales style & customized provisionof developed products and merchandise
Industry-academia
collaboration➡

Realization ofinnovative products
and merchandise＜ Increase added value by applying current business models＞
Take a bird's-eye view of our technologies and resources and apply them to otherbusiness areas (business locations)
Copyright (C) NIPPO LTD. All Rights Reserved.

22．Results ofMedium-Term Management Plan 2022
Plan （as of Nov 6, 2020）

Results
3-year total ：3.88bJPY

3-year total ：3bJPY

1.91bJPY

1.5bJPY＋αOperat
ing
Profit1.34bJPY
1bJPY＋α0.63bJPY

0.45bJPY

FY2020

FY2021

FY2022

FY2020

FY2021

FY2022

ROE・・・

≧9.0％

0.1%

10.7%

11.1％

DEratio・・・

≦0.6

0.50

0.46

0.41

15JPY+α10JPY

22JPY

33JPYDividend5JPY

10JPY+α※The FY2022 dividend amount is subject to approval at the 72nd Ordinary General Meeting of Shareholders.
Copyright (C) NIPPO LTD. All Rights Reserved.

3３．Transition for the past 6 years①■ Net Sales and Operating Income■net sales －operating income（mJPY）

60,00050,00043,79144,47943,49439,98540,000(43,966)

35,491

30,000(47,730)

38,886
1,912

20,000

1,342

1,274

10,000497646FY2017FY2018

03000
2500
2000
1500
1000
500635

0FY2019

FY2020

FY2021

FY2022※From FY2021, we have applied revenue recognition accounting standards.
Figuresin the graph and in parentheses are the amounts before the application of the new standards.

Medium-Term Management Plan 2019

Medium-Term Management Plan 2022

3-year cumulative
total of operating
income3-year cumulative
total of operating
income：2.42bJPY■Measures to Realize Tree Ring Management： 3.88bJPY
160%

Measures
Electronics
Mobility
Medical andPrecision Devices

In addition to strengthening the trading functions, we took measure in an aim to strengthen
the manufacturing functions of the slitting business and the adhesives business.
Promoted automation of manufacturing processes to reinforce cost competitivenessStarted preparation for increasing the sales proportion of medical equipment parts in thesegment as printer parts are expected to shrink.

Copyright (C) NIPPO LTD. All Rights Reserved.

4

３．Transition for the past 6 years②■Net Income －Ordinary Income （mJPY）■ Ordinary Income and Net Income
1,149496598550
FY2018（ROE：5.8％）(1,029)1,423505452FY20171,871

FY2019（ROE：5.7％）

Impairment loss onmobility business (Inazawa)

12FY2020

1,031

1,269

FY2021

FY2022（ROE：0.1％） （ROE：10.7％） （ROE：11.1％）
Intentional withdrawal from
Mexican manufacturingbusiness (mobility)■Measures to Realize Tree Ring Management
Measures

Inazawa

Although we were unable to overcome the difficulties of advanced technology, which lead to an
impairment loss on fixed assets (FY2018), we have overcome these difficulties and acquired
core technologies to promote the horizontal development of fully-automated and semiautomated production lines to group companies.

MexicoJudged that manufacturing business in Mexico is a business that does not contribute directly or
indirectly to the growth of operating income so that quickly eliminated concerns about future
impairment losses (FY2020).

Mobility

In order to suppress the occurrence of foreign exchange gains and losses on P/L, we expanded
the number of group companies that apply functional currency accounting system and have
Commonworked to balance foreign currency-denominated receivables and liabilities related to intragrouptransactions.
5
Copyright (C) NIPPO LTD.
All Rights
Reserved.

４． Medium-Term Management Plan 2025
- Basic Policy
1.

Achieve Quantitative Targets

1

As management indicators, we have set "consolidated operating income",
which indicates the profit of our core business, and "ROE", which indicatesthe efficiency of shareholders' equity.

2.

Introduce Business Portfolio Management2

We have shift resources to businesses with high growth potential andprofitability, while achieving sustainable corporate growth and improving
medium- to long-term corporate value.

2.

Implement Measures to Achieve “PBR x1”

3

Continue to increase “ROE” by “improving the efficiency of the balancesheet” and “strengthening profitability”.

Copyright (C) NIPPO LTD. All Rights Reserved.

6５． Medium-Term Management Plan 2025
- Quantitative Targets◼

3-year Cumulative Total of Consolidated
Operating Income【Result】【Result】
Medium-Term
Management Plan

2019
2.42bJPY

Medium-Term
Management Plan

157%

147%

2022

ROE: showing shareholders' equity
efficiency＜Medium-Term Management Plan 2022＞

RO
E

FY20200.1%

FY2021

FY2022

10.7%

11.1%

3-year average ROE：7.3％

Copyright (C) NIPPO LTD. All Rights Reserved.

Medium-Term
Management Plan

2025

5.73bJPY

3.88bJPY

Achieved the target 1.5 billion yen/ year in operating income,which is the highest profit ever!

◼

【Target】

Set a target to reach
2 billion yen/yearin operating income＜Medium-Term Management Plan 2025＞【Target】
3-year average：≧10.0%
Maintain ROE above the target level
while making upfront investment
in line with the medium- to long-term
strategy!
7６． Medium-Term Management Plan 2025
- Business Portfolio◼

Business Domains for Investment of Management Resources
Main Businesses

New Businesses

Semiconductormaterials

Wiring board
materials

Hydrogen energy Power device
components
components

Mobility
Electronic control
Coil parts
parts

Medical &Precision
Devices

Disposable parts for
medical equipment

sensor relatedparts

Parts for medical
robotsAutomation

Strengthening
manufacturer functions• Film slit processing• High performanceadhesives• Wafer polishing carriers• In-house planned products
Enhancingcost competitiveness• Promoting automation in
Mass production andinspections process

Enhancingcost competitiveness• Promoting automation in
Mass production andinspections process＋Create new business segments

Electronics

Strengthening
FunctionsDownsize or withdraw from businesses in each business segment that do not contributedirectly or indirectly to the growth of operating income (amount) and that cannot be
expected to contribute as time passes.
Copyright (C) NIPPO LTD. All Rights Reserved.

8

７．Medium-Term Management Plan 2025
- Investment Plan◼

Investment in Current Business（including core business）✓◼

Plan within the range of depreciation expenses in each fiscal year

Growth Investment in Human Capital and Growth Investment in
New Businesses and Enhancement of Business Functions（Including growth investments, intellectual property rights, creation of novel know-how, alliances withpartners and M&A for the Medium-Term Management Plan 2028- “Step Up” phase）✓Having reconsidered what we think is an appropriate level of working capital,
we will adjust the balance of cash and deposits and effectively leverageincreased free cash and the borrowing capacity of interest-bearing debt todouble investment in human capital and growth investment in new businesses
and enhancement of business functions.
An appropriate level ofworking capital

Shareholder Return4.9bJPY

Interest-bearing
debt

4.3bJPY【FY2022】

4.0bJPY±α＋※Investment funds for
current business arededucted

New borrowings
3.1 bJPY

1.06→－Investment inhuman capital +Growth investment

6.0bJPY＋α➡

Interest-bearing
debt

7.4bJPY±α

3.0→

Medium-Term Management Plan 2025

Copyright (C) NIPPO LTD. All Rights Reserved.

4.9→4.0bJPY±α

2.0bJPY

Increasing FCCash deposit【FY2025】
9

８． Medium-Term Management Plan 2025
- Shareholder Returns◼

Basic Policy for Shareholder Returns◼

Target in Medium-Term Management Plan 2025

With cash dividends as the pillar of shareholder returns, we have established a basic policyof “increasing dividends in line with sustainable profit growth”, and aim to continuously
improve both the total amount of dividends and the dividend payout ratio.

For the duration of the Medium-Term Management Plan 2025, our goal is to expand
investment in human capital and growth investment in new businesses and enhancement ofbusiness functions, while increasing the dividend payout ratio to around 50% and achieving
consistent increases in dividends to shareholders.

Medium-Term Management Plan 2025

FY2022

FY2023

Dividendper share

33JPY
Payout
ratio

23.4%

Copyright (C) NIPPO LTD. All Rights Reserved.

（74JPY）

FY2024FY2025（76JPY） （78JPY）

29~35% → Around 50%10

９．Medium-Term Management Plan 2025-Measures to achieve 1x PBR■ IR Measures
１Tree ring management•Continue to explain the efforts and results that have been implemented to realize
tree ring management since the medium-term management plan 2019.

２Strengthening IR
measures for
institutional investors•Utilize English-language sponsored research reports proactively for overseas
institutional investors and strengthen dialogue with domestic and overseas small
and medium-capitalization funds, etc.

■ Balance Sheet Efficiency
１Reducing the debteffect•Control the interest-bearing debt balance with free cash that would be increased
due to profit expansion, etc. (do not increase excessively)

２

Curbing increase in“Accumulated othercomprehensiveincome”•Planning and execution of measures to curb increases in this account, which tend
to be affected by exchange rate fluctuations■ Strengthen Profitability

１Profit expansion under
the Medium-Term
Management Plan
2025

・ Continuation of “initiatives to create a sustainable competitive advantage”
described by segment
https://www.nip.co.jp/english/esg/.assets/esg_torikumi_en.pdf•Through the introduction of business portfolio management① Redistribute resources to "main business", "new business",and "functional enhancement" of the current segments② Allocate resources for the creation of new business segment

Copyright (C) NIPPO LTD. All Rights Reserved.

1110-① . Long-term Strategy Map～Electronics～
Medium-Term Management Plan 2025

FY2022

FY2023

FY2024FY2025Net Sales

16.85 bJPY

16.9 bJPY

17.5 bJPY

18.1 bJPY

OperatingProfit

1.24 bJPY

1.24 bJPY

1.26 bJPY

1.30 bJPY•

Risks••

Changes in supply chains due toreorganization ofsuppliers/customers' business
Increased procurement costs due
to sharp increases in material
prices
Accelerating cost competition forgeneral-purpose materials■ScenarioNewbusinessOpportunities• Increasing need for functional materials due to the evolution of nextgeneration communications technologies• Greater demand for polishing carriers due to the increasing precision ofsemiconductor wafers• Increased demand for hydrogen fuel-related components due to theprogress of carbon neutrality• Return of domestic production activity due to fluctuations in exchange rates
and developing geopolitical risks

Shift to high value-added
products

Power devicecomponents

Hydrogen energy
components＋Strengthening
manufacturingfunctionsHigh performanceadhesive
In-house planned
product

Film slit processing

Main
business
Semiconductormaterials

Wiring boardmaterials

Copyright (C) NIPPO LTD. All Rights Reserved.

Wafer polishing carrier【 Business vision】
Develop as a materials
and components trading
company with
manufacturing functions
Capital investment to strengthen
manufacturing functions• Strengthen cost competitivenessby increasing production capacityof wafer polishing carriers• Mass production of highperformance adhesives

1210-②. Long-term Strategy Map～Mobility～
Medium-Term Management Plan 2025

FY2022

FY2023

FY2024FY2025Net Sales15.33 bJPY

15.4 bJPY

15.9 bJPY

16.5 bJPY

OperatingProfit

1.53 bJPY

1.47 bJPY

1.5 bJPY

1.54 bJPY••Risks•••

Shift to electric (EVs) (surpassing expected speeds)
Disruption of supply chains due to disasters and countries'
risks
Reduced production by automobile and auto parts
manufacturers due to prolonged semiconductor shortages
Compensation for recalls due to defective parts
Sharp increases in transportation and personnel expenses■ScenarioNewbusiness

Enhancing differentiatedtechnologies

Autonomous driving
sensor related parts

Opportunities••

Increased demand for electronic control systemparts (ECUs, PCUs, motors, etc.)
Progress in electrification leading to increased
demand for new materials satisfying requirements
for electrical properties and reduced weight
Advances in automated driving resulting inincreased demand for new materials used to ensure
safetyEnhancing costcompetitivenessWindingtechnology
applied products

Main
business
Electronic control
parts＋•

Copyright (C) NIPPO LTD. All Rights Reserved.

Evolve from Tier 2
to Tier 1.5manufacturer
Upfront investment
toward Medium-Term
Management Plan 2028

Automationequipment

Coil parts【 Business vision】• Manufacturing equipment
required to apply windingtechnology• Horizontal deployment ofautomation system tostrengthen costcompetitiveness

1310-③. Long-term Strategy Map～Medical and Precision Devices～
FY2022Medium-Term Management Plan 2025
FY2023

FY2024FY2025Net Sales

6.88 bJPY

6.9 bJPY

7.2 bJPY

7.5 bJPY

OperatingProfit

0.12 bJPY

0.1 bJPY

0.15 bJPY

0.2 bJPYRisks• (Common to Both) Change in supply
chain due to partners restructuring theirbusinesses• (Precision Devices) Decrease in printerdemand due to increasingly paperless work•(Medical Devices) Recall payouts due todefective components and other factors■ScenarioNew
business

Enhancing differentiatedtechnologies

Parts for medicalrobots•

Oppo
rtunities••＋

Increased demand for medical robots due to labor shortages at medicalinstitutions
Increased demand for telemedicine, including online medical
examinations and remote device operation due to labor shortages atmedical institutions, prevention of nosocomial infections, and otherdevelopmentsIncreased demand for high-quality, high-precision components due to anincrease in medical lawsuits【 Business vision】

Enhancing cost competitiveness・Development of contract
manufacturing system

Develop as an
OEM manufacturerof medical equipment
components

Establishment of adomestic production
system for medical parts

Upfront investment
toward Medium-Term
Management Plan 2028

Enhancing assembly technology, adhesion technology,
surface treatment technology, and validation skills

Main
business

Disposable parts for
medical equipment

Copyright (C) NIPPO LTD. All Rights Reserved.

Improving production efficiency
and reducing manufacturingcosts by changing the layout•

Increase domestic
production capacity toincrease the sales
proportion of medical
equipment parts

14

11．Measures to Create
New Business Segments
Product developmentwith environmental contribution
as a keyword

Novelty product development＜Manufacturing＞

Add newtechnology＜Trading＞

Utilize
externalresources■Market Developmentin the Field of Hydrogen Energy

Productmatching■Collaboration with Universities【Joint research with Nagoya
Institute of Technology】
Developed the world's first "defogger"
pattern-molded plastic
product that automaticallytransports liquids withfine patterns.

＋Expand the product lineup by combining in-house
resources and that of partners, targeting the key
materials necessary to generate "hydrogen energy,“
which is attracting attention
as a carbon free nextgeneration energy source.

■Development ofEnvironment-friendly Products【In-house project】（Green Development Project）
Young employees take the lead in creating new
business models and developing products basedon the keyword of "carbon neutral."（image）

Create a new business that contributes to"enhance mid- to long-term corporate value and develop a sustainable society"!
Copyright (C) NIPPO LTD. All Rights Reserved.

15【reference】 Medium-Term Management Plan 2025

～Net Sales and Operating Profit by segment～（Unit: JPY billion)

FY2022

FY2023

FY2024FY2025Net Sales

16.85

16.90

17.50

18.10

Operating
Profit

1.24

1.24

1.26

1.30

Net Sales

15.33

15.40

15.90

16.50

Operating
Profit

1.53

1.47

1.50

1.54

Medical andPrecision Devices

Net Sales

6.88 →

6.90

7.20

7.50

Operating
Profit

0.12

0.10

0.15

0.20

Company-wide expenses

Net Sales△ 0.18△ 0.30△ 0.30△ 0.30Operating
Profit△ 0.98△ 0.98△ 1.01△ 1.04

Net Sales

38.88

38.90

40.30

41.80

Operating
Profit1.91

1.831.90

2.00

Electronics

Mobility(including developmentexpenses) and adjustments

Consolidated
Total

Three-year cumulative operating profit
Copyright (C) NIPPO LTD. All Rights Reserved.

5.73
16

Contacts

NIPPO LTD.

Corporate Planning Division
Mizuguchi, Fujinami, Koshimizu

Telephone： +81-52-218-3161
HP： https://www.nip.co.jp/english/

Cautionary Statement with Respect to the Forward-Looking Statements
This document aims to provide information only to investors and not to solicit transactions.
The forward-looking statements in this document reflect our plans and expectations and are
not guarantees of future performance. Be aware that our future performance may differ
from the current forecasts. In addition, descriptions of business performance, etc. here arebased on reliable data, but we cannot guarantee the accuracy and safety of such data.
Finally, this document is provided on the assumption that investors will use it at their own
discretion and responsibility for any purpose whatsoever, and we will not be responsible for itin any event.
To note; the exchange rate used in this forecasts are 、 1USD＝150JPY、1TB＝4.0JPY
This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail. The Company
assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from thetranslation.
Copyright (C) NIPPO LTD. All Rights Reserved.