Long-term Business Plan “Atelier2050”
Mid-term Business Plan “Vista2027”
Presented by YAGI Shinsuke, Representative Director, President & COO
May 13, 2022
Translation of presentation materials for the investor meeting held in Tokyo on May 13, 2022

Contents

Copyright ©2022 Nissan Chemical Corporation All Rights Reserved.

01“Vista2021 Stage II” : Review

P3

02“Atelier2050” : Outline

P18

03

“Vista2027” : Outline

P26

2

Contents

01

Copyright ©2022 Nissan Chemical Corporation All Rights Reserved.

“Vista2021 Stage II” : Review

P33

Vista2021 Stage II (FY2019 to FY2021)
Financial Results- Achieved and significantly exceeded all income targets for FY2021 in the mid-term plan formulated prior
to COVID-19 (announced in May 2019)- Operating profit reached the record high for 8 consecutive years- Achieved the operating profit target “¥50 billion” in the long-term business plan “Progress2030”, 9 years（¥billion）
ahead of schedule
FY2018（Actual）①

FY2019（Actual）②

FY2020（Actual）
③

204.9

206.8

209.1

Operating Profit

37.1

38.6

Ordinary Income

39.1

Net Income

29.4

Sales

FY2021（Actual）④*

FY2021（Plan）⑤

FY2021(Actual vs. Plan)

④-⑤
*

208.0

235.0

-27.0

42.5

51.0

43.0

+8.0

40.0

43.9

53.7

44.0

+9.7

30.8

33.5

38.8

33.0

+5.8

*Including effects of changes in accounting policies(-¥22.9 billion)

EPS(¥/share)

197.67210.09231.73271.88230.00+41.88

ROE

16.6%

16.9%

17.5%

19.2%

Above16%+3.2%

FX Rate (¥/$)

111

109

106

112

110

+2

Crude Oil (JCC)($/bbl)

72

68

43

77

64

+13

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

4

Vista2021 Stage II
Financial Indicators- Achieved all targets for FY2021 in the mid-term plan formulated prior to
COVID-19 (announced in May 2019)
FY2021（Actual）

FY2021（Plan）OP Margin

24.5%

Above 18%

Achieved

ROE

19.2%

Above 16%

Achieved

Dividend Payout Ratio

44.9%

45%

Achieved

Total Payout Ratio

75.6%

75%

Achieved

30.7%

30%

Purchase Costs of Treasury Shares／
Net Income
Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

5

Vista2021 Stage II
Financial Results by Segment（¥billion）

Chemicals
Performance
Materials
Agrochemicals
Pharmaceuticals
OthersTotal

FY2021（Actual）①

FY2021（Plan）
②

Sales

37.6
3.8
81.7
27.7
65.8
18.3
6.6

43.1
5.1
75.1
17.3
70.1
21.1
7.5

-5.5
-1.3
+6.6
+10.4
-4.3
-2.8
-0.9

OP

0.9

0.7

+0.2

16.3
0.3
208.0
51.0

39.2
-1.2
235.0
43.0

-22.9
+1.5
-27.0
+8.0

Sales
OP
Sales
OP
Sales
OP

Sales
OP
Sales
OP

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

FY2021(Actual vs. Plan)

Major Difference Factors in Operating Profit①-②
Melamine- Lower domestic demand, export decrease,
etc.

Environmental
Related Products- Sales decrease of HI-LITE, etc.

Photo IPS

- Sales increase due to widening target
applications, etc.

ARCⓇ*1- Sales increase due to increased demandand expansion of market share, etc.

AcquiredAgrochemical
Products- Sales increase due to expansion of
QUINTEC(QUINOXYFEN) and
DITHANE(MANCOZEB)Fluralaner- Sales decrease due to inventory
adjustments

LIVALO- Sales increase in domestic market

CustomChemicals- Sales decrease of GE API*2- Delayed plan of peptide CMO

Adjustments
etc.

- Effects of changes in accounting policies(-¥22.9 billion is included in sales of “Others”)*1: ARC® is a registered trademark of Brewer Science, Inc.
*2: Active Pharmaceutical Ingredients

6

Vista2021 Stage II
Distribution of Management Resources(¥billion)

R&D Expenses(¥billion)(¥billion)

Capex

Depreciation

Total
Total
FY2019-2021 FY2019-2021（Actual）*2（Plan）*3

Total
Total
FY2019-2021 FY2019-2021（Actual）（Plan）Total
FY2019-2021（Actual）

Total
FY2019-2021（Plan）

Chemicals

1.0

1.4

10.3

14.7

6.6

Performance
Materials

21.7

26.7

12.2

17.8

Agrochemicals

13.2

14.8

15.8

Pharmaceuticals

7.0

7.1

Others* 1

6.8
49.7

Total

(person)Researchers*4
FY2021（Actual）

FY2021（Plan）

9.4

5

10

13.6

17.0

200

210

8.2

7.6

5.5

90

95

1.8

1.7

1.6

1.8

75

90

8.0

2.4

2.3

1.7

3.1

100

75

58.0

42.5

44.7

31.1

36.8

470

480
(person)R&D Expenses/Sales

Regular Positions*4

FY2021（Actual）

FY2021（Actual）

7.7%

FY2021（Plan）

9.0%

FY2021（Plan）

1,175 1,170*1: “Others” includes Planning & Development Division, Trading, Others and Adjustment segments *2: Acceptance basis
Copyright © 2022 Nissan Chemical Corporation All Rights Reserved. *3: Production commencement basis*4: Parent company only, rounded number

7

Vista2021 Stage II Chemicals Segment

Sales Growth Rates of Main Products Compared to FY2018
Although the sales growth rate of Urea/AdBlue®*1 exceeded the plan,
the sale growth rates of Fine Chemicals, Basic Chemicals, and the Segment didn’t
achieve the plans
Main Products’ Sales Growth Rate of FY2021
Compared to FY2018

Main Products

Actual

Plan

TEPIC

+17%

+40%

Environmental Related Products

+8%

+35%

+26%

+35%

Melamine

-21%

+30%

Urea/AdBlueⓇ*1

+31%

+15%

High Purity Sulfuric Acid

+26%

+25%

Total Basic Chemicals

-3%

+15%

Total Segment

+6%

+20%

Total Fine Chemicals

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

*1: AdBlue® is a registered trademark of German Automobile Industry Association(Verband der Automobilindustrie).

8

Vista2021 Stage II Performance Materials Segment

Sales Growth Rates of Main Products Compared to FY2018
Sales growth rates of DP and Semis Materials exceeded the plans
The Segment achieved the planned sales growth rate
Main Products

Main Products’ Sales Growth Rate of FY2021
Compared to FY2018
ActualPlan

TN

Decreased Sales(-49%～-30%)

Decreased Sales(-49%～-30%)

VA

Increased Sales(+10%～+19%)

Increased Sales(+50%～)

IPS

Increased Sales(+20%～+29%)

Increased Sales(+0%～+9%)

+24%

+10%

‐

Increased Sales(+50%～)

Increased Sales(+50%～)

Increased Sales(+50%～)

+23%

+15%

ARC®*1+46%+15%

Other Semis Materials

+71%

+35%

+52%

+20%

SNOWTEX+13%+5%Organo/Monomer Sol

+1%

+50%

Oilfield Materials

-43%

+285%

Total Inorganic Materials

+4％

+25%

Total Segment

+30％

+20%

Subtotal SUNEVER
HYPERTECHLight Control Film Materials
Total Display Materials

Total Semis Materials

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

*1: ARC® is a registered trademark of Brewer Science, Inc.

9

Vista2021 Stage II Agrochemicals Segment

Sales Growth Rates of Main Products Compared to FY2018

The Segment didn’t achieve the planned sales growth rate, mainly because
the planned sales growth rate of Fluralaner was unachieved
Main Products

Types

Fluralaner

Animal Health Products

ROUNDUP

Main Products’ Sales Growth Rate of FY2021
Compared to FY2018
ActualPlan

Decreased Sales(-29%～-20%)

Increased Sales(+10%～+19%)

Herbicide

+10%

+15%

ALTAIR

Herbicide

Increased Sales(+0%～+9%)

Increased Sales(+0%～+9%)

TARGA

Herbicide

Increased Sales(+0%～+9%)

Decreased Sales(-9%～-0%)

PERMIT

Herbicide

Increased Sales(+10%～+19%)

Increased Sales(+0%～+9%)

GRACIA

Insecticide+400％

Above +700%

+5%

+10%

Total Segment

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

10

Vista2021 Stage II Pharmaceuticals Segment

Sales Growth Rates of Main Products Compared to FY2018

The sales growth rate of Drug Discovery (decreased sales) was almost as planned
Custom Chemicals and the Segment didn’t achieve the planned sales growth rates
Main Products

Main Products’ Sales Growth Rate of FY2021
Compared to FY2018
ActualPlan

Domestic

+183%

+30%

Export-60%-55%

Subtotal LIVALO

-46%

-50%

Total Drug Discovery

-44%

-45%

Total Custom Chemicals

+60%

+95%

-5%

+10%

Total Segment

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

11

Vista2021 Stage II

Progress in Implementing Measures Based on Basic Strategies

Basic Strategy 1.

 Decided to withdraw from melamine business to promote structuralreform of Chemicals Business Expanded sales and by increasing product lines, widened target

applications of photo IPS“Increaseprofitability of
products that are
the sources ofgrowth" Decided to establish a new NCK plant to increase production

capacity of semiconductor materials(Investment amount: ¥8.5
billion(rounded number), planned completion: July 2023)
 Expanded the agrochemical product portfolio through acquiring

businesses of fungicides, “DITHANE” and “QUINTEC”
 Established Nissan Bharat Rasayan Private Limited (India), thefirst overseas agrochemical production site, to expand the capacity
to supply products
Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

12

Vista2021 Stage II

Progress in Implementing Measures Based on Basic Strategies

Basic Strategy 2.

Established Planning and Development Division (April 1, 2020)
Functions were integrated such as theme and market developments, for stronger
planning and development abilities.
[Life Science Materials Development Dept.]
Materials for cosmetics market and regenerative medicine market, etc.
[Information & Communication Materials Development Dept.]
Novel electronic materials for information & communication, etc.
[Environment & Energy Materials Development Dept.]
Materials for secondary batteries and solar cells, etc.
[Innovative Materials Planning Dept.]
Creation and introduction of new themes and technology“Strengthen
ability to create
new products”
Invested in a venture capital and considered introducing technology andproducts from start-up companies

Promoted joint research and development with pharmaceutical companies
and strategic alliance with Luxana Biotech Co. (Secured 7 nucleic acidtarget themes)

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

13

Vista2021 Stage II

Progress in Implementing Measures Based on Basic Strategies

3.
Basic Strategy
3.

 Established a Nomination and Remuneration Advisory Committee
 Introduced a Performance-linked Stock Compensation Plan
 Increased the number of outside directors (one each in June2019 and June 2021, for a total of four outside directors)“Improve ability toadapt tosocial/market
changes”

 Appointed first female outside director (June 2021)
 Established a long-term target for reducing GHG emissions by atleast 30% compared to FY2018 by FY2030 and promoted related
measures (such as fuel conversion at Onoda Plant) Conducted and published climate change scenario analysis andannounced the support for recommendations of TCFD (Task
Force on Climate-related Financial Disclosures)
 Established and published a Diversity Statement and Diversity

Vision Established Health Promotion Office and strengthened thepromotion of health management
Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

14

Vista2021 StageⅡ

Sales of Main New Products: FY2021 Plan(Published in May 2019) *1
Below ¥0.3 billion
Chemicals¥0.3 to ¥0.6 billion

Above ¥0.6 billion

 Fine Chemicals

 Fine Chemicals

Venus Oilclean

New TEPIC (Liquid type) Display Display

Alignment materials for LC
retarderLight control film materials

Alignment materials for TV

Repellant bank layer materials

Flexible hard coating materials

Total¥0.6 billion
 Display

Hole injection layer materials

Performance
Materials

 SemisEUV under layer Semis3D packaging process materials

CMOS image sensor materials

Agrochemicals

 Inorganic Inorganic

New high refractive materials(IM layer film)

Organosol (Insulation CTE)

Monomer sol (3D-printing)Oilfield materials
 In-house

NEXTERGRACIA
ROUNDUP ALⅡ/Ⅲ
 Licensed-in
ALEILE Custom Chemicals

Pharmaceuticals

 Inorganic Licensed-in

 In-house
CLARE

New GE API product¥7.8 billion

TRANSFORM ™
EXCEED ™
VIRESCO ™
 Custom Chemicals

New GE API productEldecalcitol
Peptide CMO

New Field¥7.9 billion

Functional cosmetic materials

Biocompatible materials

Cell culture medium

Secondary battery materials¥2.7 billion¥0.6 billion¥19.6 billion
Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

*1: Including R&D costs deduction due to the sample shipments

15

Vista2021 StageⅡ

Sales of Main New Products: FY2021 Actual *1

Below ¥0.3 billion
Chemicals¥0.3 to ¥0.6 billion

Above ¥0.6 billion

 Fine Chemicals
New TEPIC (Liquid type)

Total¥0.0 billion

Venus Oilclean Display
Light control film materials

Hole injection layer materials

Repellant bank layer materials

Performance
Materials

 Semis3D packaging process materials

 Semis Inorganic
Organosol (Insulation CTE)
Monomer sol (3D-printing)Agrochemicals

Oilfield materials

 In-house
TRANSFORM ™
EXCEED ™
VIRESCO ™

 In-house
CLARE¥3.4 billion

 Inorganic
New high refractive
materials (IM layer film)

 Licensed-in
NEXTEREUV under layer

CMOS image sensor materials

GRACIA
ROUNDUP ALⅡ/Ⅲ
 Acquisition

ALEILE¥9.7 billion

QUINTECDITHANE

Pharmaceuticals
Planning andDevelopment
Division Custom Chemicals
New GE API product Life Science Materials Dept.
Cell culture medium

 Custom Chemicals
New GE API productEldecalcitol¥1.1 billion¥0.0 billion¥14.2 billion
Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

*1: Including R&D costs deduction due to the sample shipments

16For the Future Growth-Further strengthen the development of new products-Refine business plans-Enhance and improve business efficiency

Improve marketing capabilities
Develop new business areas
Strengthen the creation and co-creation process ofvaluesFormulate new business plans to resolve issues
for even further growth
Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

17

Contents

02

Copyright ©2022 Nissan Chemical Corporation All Rights Reserved.

“Atelier2050” : Outline

P18

18

Positioning of the Business Plan
Considering social and business issues, we have defined the ideal state in 2050,
pursuing our corporate philosophy
Social Issues (External Environment) The global

 Regional

development

environment

 Climate changes

 Aging Health issues

 Labor shortage

Contribute to the protection of the global

Corporate Philosophy
Raison d'etre/
Corporate Purpose

environment and the existence/developmentof humanity, offering the value sought bysociety.

population

 Food issues

Ideal State in 2050

Business Issues (Internal Environment) Pursuing the social value Expanding business areas
 Strengthening the ability to develop

new products

Corporate
State

OrganizationalState Promoting diversity
 Cultivating human resources Corporate governance Risk management

Business
Areas

SocialInvolvement

Employees
State Compliance
Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

19

Positioning of the Business Plan
We will pursue our corporate philosophy (raison d'etre/corporate purpose)by promoting our long-term business plan “Atelier2050”.
MissionStatement
Our Values“Contribute to society with excellent technologies and products.”“Promote prosperity and welfare through concerted efforts to constantly develop new areas.”“Respect people who exhibit a sense of responsibility, originality and motivation.”

Corporate
Philosophy

Raison d'etre/
Corporate Purpose

Long-term
Business Plan
Atelier2050

Course of Action

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

Contribute to the protection of the global environment and theexistence/development of humanity, offering the value soughtby society.
Ideal State in 2050

Corporate StateBusiness Areas

Organizational State

Social Involvement

Employees State

Renamed from Basic CSR Policy to Course of
Action (The content remains unchanged)
20

Atelier2050
Ideal State in 2050: Overall View
Corporate State

Organizational StateA “Future-Creating Company” thatgrows through seeking to enrichpeople and nature

A group of co-creators that facechallenges for change with a strong
passionBusiness Areas Growth is achieved with Information &Communication, Life Science, andEnvironment & Energy as growing
business areas, and Materials & Services
as a core business area.
 Life Science business is expanding withthe microbial control technology as thecore, and Information & Communication
business is growing with sensing
materials and other products.
Environment & Energy business is fullfledged and contributes greatly to theglobal environment.

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

Social Involvement
 Expanding businesses andproducts that contribute to solvingsocial issues
 Advancing the Group’s business

management that prioritizes lesseffect on the global environment
 Becoming a corporate group thatis trusted and valued by the local
community and whole society

Employees State
Basic Stance
Valuing the integrity as the strength
We trust and respect people. We achieve things
with responsibility. We make efforts for someone
else and work together as well. Integrity is theadvantage and identity of the Group.



Taking a step forward with the vision

We explore individual ideals. To realize that, wetranscend the traditional framework, go throughrepeated trial and error and face challenges forchange.
Transcending collaboration to co-creation

We evolve collaboration into co-creation, having
the courage to go through clashes of diverse ideas
and enthusiasm.

21

Atelier2050
Ideal State in 2050: Business Areas- Besides existing core technologies, we will acquire new technologies and expand into new areas related to the three
growing businesses- We will accelerate growth in each business area by improving and combining core technologies to contribute tosolving social issues
Solving
SocialIssues-Protect the global environment-Mitigate climate changes-Address health issues-Solve food issues-Achieve a smart society-Improve quality of life

1 Information & Communication

2 Life Science Semiconductor materials

 Agrochemicals

 Display materials

 Animal health products

 Photofunctional materials

 Biomedical materials

3 Environment & Energy
 Secondary battery

materials and fuel cellmaterials

4 Materials & Services
 Industrial chemicals
 Colloidal silica
 Affiliate companies

 Pharmaceuticals(small molecules,
oligonucleotides, peptides)

Business
Expansion
into newareas Next-generation solar cellmaterials
 CCUS materials

 Sensing systems(IoT sensor materials)
 Metamaterials(Biomimetic sensors)

 Microbiome
 Biostimulants(Agriculture/healthcare)(Microbial materials)
 CO2 reduction system

Core businesses

Growing businesses

CoreTechnology

Existing
technology

Fine organic
synthesis

New
technology

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

Functional polymer
designUltrafineparticle control

Microbial control

Biologicalevaluation

Optical control

Information
science22

Atelier2050
Basic Strategies
Three basic strategies have been established to realize the ideal state1
Deeply exploit and expand
business areas

2
Pursue sustainable
management further

Expand into new areas related to
growing businesses

Develop business activities that
contribute to solving
environmental and social issues

Accelerate the value-creation
process by utilizing digitaltechnology

 Information & Communication

 Attain the “Nissan Chemical Fuse virtual and physical space• Develop materials for the next-generation

display and join that market, and provide
materials that are compatible with the
evolving semiconductor technologies• Enter into new businesses, such as thesensing area and photo-functional material
marketSustainable Agenda” and expand
product/service lines specified in
the Agenda (See P24, P39 andP40)

 Achieve carbon neutrality (Scope

3
Renovate management
and business foundations

and strengthen AI analysis

 Utilize digitalization,

automatization, and robotization
to focus on creative work1+2) (See P25)

 Life Science• Expand into microbial agrochemicals, andadvance into healthcare and environmentrelated areas with microbial control
technology

 Cultivate a corporate culture

where the future is co-created Environment & Energy• Develop materials related to batteries/cells

that contribute to solving environmental
issues, renewable energy materials, andCCUS materials

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

23

Nissan Chemical Sustainable Agenda(Key Performance Indicator(KPI))-Establish a key performance indicator (KPI) regarding products and services that contribute to solvingsocial issues, “Maintain the rate of Sustainable Agenda products and services at 55% or higher of theconsolidated net sales in FY2027”-Expand the sales of applicable products and services into areas where we can make a contribution,
starting from the perspective of “what we can do for the future of the globe and human”
Areas of Contribution

Actualizing
a sustainable futurefor our planet

Key Performance
Indicator
Reduce CO2

Reduce waste

Conserve aquatic
environments(KPI)

Sustainable Agenda products
and services as a percentage ofconsolidated net sales in
FY2027

Actualizing
sustainable
comfort for all

Maintain at least
Solve health issues
for humankind andanimals

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

Achieve asmart society

Solve foodshortages

55%
24

Achieve Carbon Neutrality by 2050
- Aim to achieve the target for FY2030 by FY2027, three years ahead of schedule (planned investment of ¥0.5 billion)- Focus on improving production technology and adopting renewable energy etc., in addition to conventional efforts,
to achieve carbon neutrality by 2050
▍Trend of GHG Emissions (SCOPE1+2)(Thousands of tons of CO2)

450

448

350

Vista2021 Target“Reducing GHG emissions
by 20% compared to
FY2011” was achieved
ahead of schedule.

363

250

327

-30%

CarbonNeutral

319
254

150

50

-50

Major
Initiatives

Net Zero
2011

2018

Vista
2021

• Naphtha (raw material) converted to natural gas• Heating furnace fuel• Auxiliary boiler fuel converted from heavy oil tonatural gas

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

2019

2020

2027 Target

2050 Target (Fiscal Year)• Zero N2O emissions from nitric acid plants• Melamine production shutdown• Fuel conversion• Improvement of production
technology and processes• Upgrade to energy-efficient equipment• Electrification of fossil fuels• Introduction ofrenewable energy• Introduction ofcarbon negativetechnology

25

Contents

03

Copyright ©2022 Nissan Chemical Corporation All Rights Reserved.

“Vista2027” : Outline

P26

26

New Mid-term Business Plan “Vista2027”- Six-year plan starting in FY2022 as the first year (Stage I for the first threefiscal years and Stage II for the second three fiscal years)- As a milestone on the way to the ideal state set forth in the new long-termbusiness plan “Atelier2050”, we describe our ideal state in 2027 and set a roadmap for sustainable growth

Ideal State of the Company in 2027
“While existing businesses are robustly driving the businessperformance, new core technologies are consistently acquired for
expanding and enhancing business areas”“Organized sustainability-related initiatives are promoted and related
information is offered internally and externally”“As the digital foundation is being established, business activities are
conducted based on the latest information on clients and markets”
Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

27

Vista2027
Basic Strategies
Based on the issues identified in Vista2021 Stage II and the ideal state in 2027,
the following basic strategies has been established1

Deeply exploit business areas and increase marketing ability

2

Promote sustainable management

3

Strengthen the creation and co-creation process of values

4

Expand market shares and profits of existing businesses(Expansion of existing products as the source of growth andsolid development of new products)

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

28

Vista2027
Sales and Income Targets
Foster new products that will be the source of growth for the next generation,
while keeping existing products as the mainstay of growth（¥billion）
FY2021（Actual）

FY2022（Outlook）

FY2024（Plan）FY2027（Plan）FY2024vs.
FY2021

FY2027vs.
FY2021

①

②

③

④

③-①

④-①

208.0

219.0

255.0

285.0

47.0

77.0

Operating Profit

51.0

53.5

58.5

67.0

7.5

16.0

Ordinary Income

53.7

54.1

59.5

68.0

5.8

14.3

Net Income

38.8

39.6

44.0

50.0

5.2

11.2

EPS(¥/share)

271.88280.90317.64371.67+45.76+99.79ROE

19.2%

18.7% Above18% Above18%

-

-

Sales

FX Rate (¥/$)

112

115

110

110

Crude Oil (JCC)($/bbl)

77

88

88

88

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

29

Vista2027
Financial and Non-Financial Indicators
FY2021（Actual）

FY2022～FY2027（Plan）OP Margin

24.5%

Above 20%

ROE

19.2%

Above 18%

Dividend Payout Ratio

44.9%

55%

Total Payout Ratio

75.6%

75%

Purchase Costs of Treasury Shares／Net Income

30.7%

20%

FY2027（Plan）
Nissan Chemical Sustainable Agenda（total sales of products and services that contribute to solving social
issues/consolidated net sales ）Reduction of GHG emissions

Maintainat least 55%
At least 30%
compared to FY2018（Achieve the target for FY2030,
3 years ahead of schedule）

Positive response rate in survey of employee attitude on
human resource development

At least 65%

Proportion of female researchers

At least 18％

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

30

Vista2027 StageⅠ
Cash Flows(CF)（¥billion）
Total FY2019-FY2021

Total FY2022-FY2024（Plan, Rounded numbers）（Actual）

CF from operating activities

117.3

140.0

CF from investing activities

-40.8

-55.0

Free cash flow

76.5

85.0

CF from financing activities

-78.6

-90.0

-73.5

-90.0

-4.2

0.0

Total payout to shareholders(dividend & share repurchase)
Repayment of borrowings（¥billion）
2022/32025/3（Actual）（Plan）Cash at end of fiscal year

34.7

30.0

Liabilities with interest at the end of
fiscal year

22.7

23.0

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

31

Vista2027 StageⅠ
Distribution of Management Resources(¥billion)

R&D Expenses(¥billion)(¥billion)

Capex

Total
Total
FY2019-2021 FY2022-2024（Actual）（Actual）

Depreciation

Total
FY2019-2021（Actual）*3

Total
FY2022-2024（Actual）*4(person)Researchers*5

Total
Total
FY2019-2021 FY2022-2024（Actual）（Actual）

FY2021（Actual）

FY2024（Plan）

Chemicals

1.0

0.8

10.3

9.6

6.6

7.5

5

5

Performance
Materials

21.7

25.0

12.2

27.9

13.6

19.2

200

210

Agrochemicals

13.2

14.5

15.8

12.4

7.6

10.0

90

105

Healthcare* 1

7.0

2.6

1.8

1.2

1.6

1.2

75

20

Others* 2

6.8

12.1

2.4

4.2

1.7

2.4

100

150

49.7

55.0

42.5

55.3

31.1

40.3

470

490

Total

(person)R&D Expenses/Sales

Regular Positions*5

FY2021（Actual）

FY2024（Plan）FY2021（Actual）

FY2024（Plan）

7.7%

7.5%

1,175

1,255

*1: The figures of FY 2019 to F2021 are those of Pharmaceuticals segment*2: “Others” includes Planning & Development Division, Trading, Others, Adjustment segments*3: Acceptance basis

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

*4: Production commencement basis*5: Parent company only, rounded number

32Vista2027
Sales and Income Targets by Segment

Chemicals
Performance
Materials
Agrochemicals
Healthcare* 1
OthersPlanning andDevelopment* 2
Total（¥billion）

FY2021（Actual）

FY2022（Outlook）

FY2024（Plan）FY2027（Plan）FY2024vs.
FY2021

FY2027vs.
FY2021

①

②

③

④

③-①

④-①

37.6
3.8
81.7
27.7
65.8
18.3
6.6
0.9
16.3
0.3
0.0
-3.4
208.0
51.0

38.6
2.2
89.9
30.5
72.9
19.5
5.9
2.1
11.7
-0.8
0.0
-5.2
219.0
53.5

37.6
3.5
102.9
32.1
77.8
21.7
7.2
2.1
29.5
-0.9
1.3
-4.7
255.0
58.5

40.1
3.9
117.2
38.0
82.3
21.0
11.5
4.3
33.9
-0.2
4.4
-4.7
285.0
67.0

Sales
OP
Sales
OP
Sales
OP
Sales
OP
Sales
OP
Sales
OP
Sales
OP

Impact of organizational change regarding Healthcare Div.

R&D expenses (Impact of transfer toPlanning & Development Division)

FY2022

1.5

FY2024

1.3

+2.5
+0.1
+35.5
+10.3
+16.5
+2.7
+4.9
+3.4
+17.6
-0.5
+4.4
-1.3
+77.0
+16.0

FY2027

1.3*1: The figures of FY2021 are those of Pharmaceuticals segment
Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

0.0
-0.3
+21.2
+4.4
+12.0
+3.4
+0.6
+1.2
+13.2
-1.2
+1.3
-1.3
+47.0
+7.5

*2: The figures of Planning and Development Division are internal figures of Others

33Vista2027
Basic Strategies
1

Deeply exploit business areas and increase marketing ability

 Refine existing core technologies, and deeply exploit and expand development

areas(1)Materials for sensors

Develop materials that enable advanced sensing(2)Materials for next-generation displays

Develop materials corresponding to technological innovations in display(3)Materials for batteries/cells, gas separation membrane materials
Develop materials that contribute to reduction of GHG emissions

 Incubate new core technologies (microbial control, information science)

Aim to acquire microbial control technology, aiming to expand business areas by 2050
-innovate agriculture and healthcare by controlling microbiome in soil, in intestines, on skin, etc.
-use microbiome to reduce GHG emissions

 Introduce external technologies related to existing and new core technologies
 Enhance marketing power and planning ability
Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

34

Vista2027
Basic Strategies

2

Promote sustainable management

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

35

Vista2027
Strengthening Corporate Governance
Incorporate the concept of sustainable management into corporate governance and strengthen its
effectiveness, by incorporating ESG indicators into the officers’ remuneration system (to be resolved at
the Board of Directors meeting in May 2022)▍Composition of Officers’ Remuneration*1
Baseremuneration 70%

Profit-linked portion

90%

Remunerationin stock 5%

Performance-related
remuneration 25%

ESG-linked portion

10%[Evaluation indicators][Evaluation indicators]

 Profit attributable to owners of parent

 ESG evaluation by third-party organizations

 EBITDA Rate of reduction of GHG emissions

GHG emissions in FY2027: Reduce by atleast 30% compared to FY2018 (See P43)

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

*1: The ratio of the portions of the composition varies according to the Company’s performance36

Vista2027
Strengthening Corporate Governance
Establish a Climate Change Committee to accurately identify risks and opportunities that the Company
faces due to escalating climate change issues, and promptly reflect the risks and opportunities on the
Company’s strategies (scheduled to be installed in July 2022)▍Organizational Chart

Board of Directors
ChairmanPresident
Management Meeting

Sustainability
Promotion
Committee*1
Develop overall sustainability
policies, specify materiality,
set and manage the progress
of KPIs, develop long- andmid-term plans, annual
activities, and targets

Climate Change
Committee
Analyze and evaluate risks
and opportunities with a
special focus on climatechange issues, and develop
related strategies, long- andmid-term plans, annual
activities and targets

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

Risk Management &Compliance
Committee

Environment, Safety& Quality AssuranceCommittee

Identify company-widerisks/compliance, develop
and refine countermeasureplans, and evaluate theimplementation status andissues of countermeasures

Develop RC policies, set andmanage the progress of KPIs,
develop long- and mid-termplans, annual activities, andtargets*1: Renamed from CSR Committee on April 1, 2022

37

Vista2027
Strengthening Risk Management and Compliance-Strengthen cooperation among divisions in charge of the Group major risks and build a strong internal control system-Establish a new risk countermeasure plan, and improve the effectiveness of the management and countermeasuresfor each of the set categories
Overview of Risk

Categories
Group majorrisks

Delay/discontinuance of product and technology
development
Advent of innovative technology
Failure of the business portfolio strategy

Risks to beprioritizedCountermeasure against Risk
Expanding/reviewing existing businesses and products
Evaluating periodically the degree of achievements of strategies established in the mid-termbusiness plan for new businesses and products, and making correction

Difficulty in procurement of specific raw material

Taking countermeasures to stabilize procurements based on the nature of the businesses

Fire/explosion

Establishing and operating a security and disaster prevention management system

Quality defect/recall, quality falsification

Preventing troubles/misconducts about quality through thorough governanceInfringements of intellectual property rights

Making continuous improvements of “IP verification process” to reduce the risk of
infringing on other companies' patents, and promoting education with and prevailingthe process

Occupational accident

Establishing and promoting an occupational safety management system

Violation of laws, revision/tightening of laws/regulations
Revocation/missing procedures of governmental approvals
and licenses/registrations
Insufficiency/loss of license/qualification

Optimizing the operation of managements of legal regulations and enhancing education to
improve all employees’ mind and knowledge

Torrential rain/flood, earthquake/tsunami, typhoon/tidal wave Reviewing and strengthening countermeasures to enable early recovery/business continuity

Mid- andlong-termrisks

Developed
risks

Cyber attack/information leakage

Considering and promoting countermeasures from the prospective of “prevention”, “damage
minimization” and “education”

Insufficient governance of overseas subsidiaries and offices

Establishing rules and systems to strengthen governance of the corporate group

Insufficient consideration for CSR at suppliers

Making CSR evaluations of and feedbacks to suppliers and supporting their improvements

Failure to achieve the target of reducing GHG emissions

Establishing a company-wide organization, promoting initiatives and managing the progress

Delay in human resource development（cultivation of diverse human resources）

Enhancing programs to strengthen recruiting and education for realizing the ideal organizational
state/human resource image

Outbreak of infection/disease in a groupContinuously promoting countermeasures to prevent being infected and the spread of theinfection

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

38

Materiality

1

Provision of New Value for Helping toEnrich People’s Lives

Provide products and services that contribute to solving social issues through four businesses,with the refining and fostering of core technologies
Materiality Factor

Major Initiatives
 Develop materials that contribute to the expansion of renewable energy

 Develop materials that contribute to the achievement of a circular economy

Supply of environmental-friendly
products and services

 Reduce the application amount of agrochemicals
 Introduce recyclable packaging materials
 Supply exhaust gas removal materials

 Supply disinfectants for water purification tanks

 Supply materials that enable reduction of oil and fat waste

Contribution to smart society Supply materials that contribute to higher capacity/speed of data communication andsensing Supply agrochemicals to increase crop yields and conserve agricultural labor in foodContribution to food issues

production
 Contribute to the maintenance of health of livestock

Contribution to improvement of thequality of life

 Supply disinfectants for drinking water Contribute to maintaining the health of companion animals
 Supply generic drugs

Contribution to health issues

 Offer contracted manufacturing and service for pharmaceuticals
 Develop materials for regenerative medicine market
 Develop drugs for intractable diseases

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

39

Materiality

1

Provision of New Value for Helping toEnrich People’s Lives

Provide products and services that contribute to solving social issues through four businesses,with the refining and fostering of core technologies
Materiality Factor

Major Products and Services
 Secondary battery materials

Supply of environmental-friendly
products and services

Target for FY2027(Compared to FY2021)

 AdBlue®*1

 Photoelectric conversion materials  HI-LITE
 CCU and CCUS materials
 Venus Oilclean ECOPROMOTENet Sales＋10％

 ROUND NOZZLE ULV5
 GREENDITHANE

Contribution to smart society

Contribution to food issues
Contribution to improvement of thequality of life

 Display materials

 Semiconductor materials

Net Sales Sensor materials＋55％

 Agrochemicals

Net Sales Fluralaner (for livestock)＋15％
Net Sales HI-LITE (for drinking water) Fluralaner (for companion animals)
 Maxacalcitol andContribution to health issues

 Optical interconnect materials＋15％
 FCeM series

 Prevelex series
other generic drugs
 Contracted manufacturing and service for pharmaceuticals
 Oigonucleotide therapeutics

Net Sales＋5％

Rate of total sales of products and services
that contribute to solving social issues
in consolidated net sales

Nissan Chemical Sustainable Agenda

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

*1: AdBlueⓇ is a registered trademark of German Automobile Industry Association(Verband der Automobilindustrie).

Maintain at least

55%

40

Materiality

2

Strengthening of Nissan Chemical’s
Business BaseStrengthen our business foundation, including the enhancement of human capital, in order to enhance our
response capability to increasingly diverse and sophisticated demands from the market
Materiality Factor
Enhancement of R&D capability
Improvement of product quality

Major Initiatives

Target for FY2027

 Accelerate R&D through the use of AI
 Expand core technologies

Total number of patent applications (FY2022 to 2027): 2,500

 Prevent serious complaints

 Number of serious complaints: Zero

 Use open innovation further

 Prevent quality fraud and data tampering Attendance rate of quality training: At least 90%

 Promote measures against lifestyle-related diseases

Maintenance and improvement of
employees’ health Implement mental health measures Conduct awareness activities for employees on maintaining theirhealthRate of employees within appropriate weight*:At least 70%*BMI (body mass index): 18.5 to 25.0

 Promote female’s health Promote work-life balance

Creation of a comfortable workplace Implement measures against harassment

 Provide support for childcare and nursing care, encourage male

Utilization rate for annual paid leaves: At least 80%

employees to take parental leaves

Personnel retention and trainings
Promotion of diversity
Promotion of fair-trading
Promotion of sustainableprocurement
Adaption to climate change Introduce a new personnel system (role evaluation system)
 Strengthen career development

 Enhance self-development support programs
 Promote female’s activities

 Recruit international students

 Promote employment of persons with disabilities
 Hold in-house training sessions, and conduct other educational

and awareness activities for fair-trading Conduct educational and awareness activities for compliance Provide feedbacks on results of sustainable procurement survey

 Provide supports in improvement for suppliers that don’t meet theCompany’s standards

 Maintain and improve the resilience of business activities in theevent of natural disasters

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

Positive response rate in survey of employee
attitude on HR development: At least 65%
 Proportion of females in the regular position: At least 13%

 Proportion of female researchers: At least 18%
 Zero violations of antitrust laws
 Zero bribery of foreign public officials

Provision rate of supports in improvement for suppliers that don’t meet
the Company’s standards: At least 90%
Update and maintain BCPs for products that account for 50% of
ordinary income

41Materiality

3

Continuous Improvement of
Responsible Care Activities

Continue our commitment to Responsible Care, with a focus on reducing GHG emissions to achievecarbon neutrality by 2050
Materiality Factor
Mitigation of climate change

Major Initiatives

Target for FY2027
GHG emissions: Reduce by at least 30%
compared to FY2018 (3 years ahead of thetarget for FY2030)

 Reduce GHG emissions

 Zero accidents requiring staff time off from

Promotion of occupational healthand safety

 Strengthen occupational safety management

Biodiversity conservation

 Promote biodiversity conservation activities

Management of chemical
substances Comply with laws and regulations regarding

Reduction of industrial waste andpollutant emissions

 Reduce

Security and disaster prevention

the use of chemical substancesindustrial waste
emissions for final disposal

andpollutant Strengthen the management of security and

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

disaster preventionwork Number of occupational accidents: Reduce byhalf compared to FY2020
Establish and operate Bio-Parks at Nissan
Chemical’s plants

Continue zero serious violations of laws andregulations

Reduce final disposal ratio at Nissan Chemical'splants (compared to FY2020)

 Zero fires, explosions and chemical spills
 Zero security accidents

42Reduction of GHG Emissions
Focus on improving production technology and adopting renewable energy etc., inaddition to conventional efforts, to achieve carbon neutrality by 2050
Initiatives in Vista2027(Thousands of tons of -CO2)

450

△30%
350

363

250

254

150

(Planned investment of 500 million yen,variable cost of 50 million yen/year) Melamine production shutdown Converting fuels at Onoda Plant
 Promoting reduction of GHG emissions
through full-scale introduction of ICP
2027 target (Fiscal Year)

50

-50

 Zero N2O emissions from nitric acid plants

2018

2020

 Reduction of CFC equipment▍Comparison of GHG emissions withgeneral chemical manufacturers（Thousands of tons -CO2）

FY

2011

2018

2019

2020

Nissan Chemical

448

363

327

318

-

-

5,845

5,581

Average of 4 major generalchemical manufacturers(non-consolidated basis)
Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

 Upgrade to energy-efficient equipment

43

Vista2027
Basic Strategies

3

Strengthen the creation and co-creation process of values
 Revamp the existing personnel system and human resource

development for attaining business strategies
 Set up Digital Transformation Department and facilitate digitaltransformation(DX) and business foundation renovation
Promote DX measures such as business DXs and plant DXs, aiming for thecreation and co-creation of values through the maximum use of digital technology
and data

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

44

Vista2027
Basic Strategies

4

Expand market shares and profits of existing businesses(Expansion of existing products as the source of growth andsolid development of new products)

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

45

Vista2027 Sales Increase and Its Ratio of Existing
and New Products Compared to FY2021

300.0¥billion

200.0

100.0

+47.0

(vs. FY2021)

255.0
17.0

34.5

(vs. FY2021)

208.0
8.5

199.5

+77.0

285.0

New Product*1

Sale Increase (vs. FY2021)
FY2024 +¥ 8.5 billion(18%)*2
FY2027 +¥26.0 billion(34%)*2

Existing Product
238.0

250.5

Sale Increase (vs. FY2021)
FY2024 +¥38.5 billion(82%)*2
FY2027 +¥51.0 billion(66%)*2*1: New products according to the definition of Vista2027(products whose sales started/will start in or after
FY2019, etc.)

0.0*2: The figures in parentheses refer to percentages
in total increases

FY2021

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

FY2024
existing product2027
new product46

Vista2027 Sources of Growth~Main Growing Existing Products and Main New Products~
Main growing existing product (an existingproduct whose sales increase is ¥0.5 billion or more)

Main new product (a new product whose sales

should be the source of growth¥billionincrease is ¥0.5 billion or more)

Existing Products
Main Growing Existing Products

50.0
40.0

Others38.5

51.0

New Products
Main New Products
Others

5.8

2.3

26.0

30.0
20.0

36.2

8.5

10.0
0.0

3.5

45.2
1.7

22.5

6.8
FY2021 to FY2024

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

FY2021 to FY2027

FY2021 to FY2024

FY2021 to FY2027
47

Vista2027 Sources of Growth
Main Growing Existing Products（¥billion）

FY2021to
FY2024Main Growing Existing Products

3.7

Chemicals

FY2021to
FY2027

4.7

Examples of Main Growing
Existing Products
urea/AdBlueⓇ*1, sulfuric acid products,
environmental related products, etc.

Performance
Materials

17.3

24.0

Agrochemicals

14.4

15.7 GRACIA, etc.

0.8

0.8 API Manufacturing (Maxacalcitol), etc.

Healthcare

Total(A)36.2

ROUNDUP, Fluralaner, ALTAIR, LEIMAY,

*3

45.2

Total(B) Other existing products
whose sales increase is lessthan ¥0.5 billion

2.3

5.8

Total((A)＋(B))

38.5

51.0

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

photo IPS, ARCⓇ*2, multi layer materials/ 3D
packaging process materials,SNOWTEX, etc.

*1: AdBlue® is a registered trademark of German Automobile
Industry Association(Verband der Automobilindustrie).
*2: ARC® is a registered trademark of Brewer Science, Inc.
*3: Active Pharmaceutical Ingredients48

Vista2027 Sources of Growth
Main New Products（¥billion）

FY2021to
FY2024FY2021to
FY2027

Examples of Main New Products

Main New Products

Performance
Materials

4.3

11.3 photo VA, OLED materials, EUV materials, etc.

Agrochemicals

1.2

5.1 NC-653, NC-520, NC-656, etc.

Healthcare

0.7

2.9 API Manufacturing (Eldecalcitol), etc.

Planning &Development

Total(A)Total(B) Other new products
whose sales increase is lessthan ¥0.5 billion

Total((A)＋(B))
Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

*1

RDL Materials for FOWLP, optical interconnect
materials, materials for LIB （Slurry
additive）,etc.

0.6

3.2

6.8

22.5 *1: Active Pharmaceutical Ingredients

1.7

3.5

8.5

26.0
49

Vista2027
Chemicals Segment
Opportunities and Risks

Main Measures- Rising prices of raw materials and fuels- Expansion of semiconductor market- Increasing demand for environmentfriendly products- Introduction of carbon pricing- Improve the profitability of ammoniarelated business after the withdrawal
from the melamine business- Expand the sales of high purity sulfuricacid- Expand the sales and improve theprofitability of cyanuric acid and HI-LITE- Develop the business of Venus
Oilclean(a microorganism formulation)

Major Investment
Plans

Sources of Growth- Urea/AdBlueⓇ*1- Sulfuric acid products- Environmental related products- TEPIC for electronic materials- Engineering work relating to the shutdown of melamine production ¥0.1 billion- Engineering work to reduce GHG emissions at the nitric acid plant ¥0.5 billion（¥billion）

FY2021(Actual)FY2022(Outlook)

FY2024(Plan)FY2024vs.
FY2021

FY2027(Plan)FY2027vs.
FY2021

Sales

37.6

38.6

37.6

40.1

0.0

+2.5

OP

3.8

2.2

3.5

3.9

-0.3

-0.1

Capex

2.3

3.9

2.9

‐

+0.6

‐

Depreciation

2.5

2.6

2.5

‐

0.0

‐

R&D expenses

0.3

0.4

0.2

‐

-0.1

‐

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

*1: AdBlueⓇ is a registered trademark of German Automobile Industry Association(Verband der Automobilindustrie).

50

Vista2027 Chemicals Segment

Sales Growth Rates of Main Products

Main Products

FY2022 vs. FY2021 FY2024 vs. FY2021*2 FY2027 vs. FY2021*2

TEPIC

+8%

0%

+5%

Environmental Related Products

+16%

+15%

+20%

FINEOXOCOL

+7%

+5%

+20%

Total Fine Chemicals

+12%

+10%

+25%

Melamine

-62%

-100%

-100%

Urea/AdBlueⓇ*1

+36%

+40%

+40%

High Purity Sulfuric Acid

+6%

+20%

+25%

Total Basic Chemicals

-2%

-5%

-5%

Total Segment

+3%

0%

+5%

*1: AdBlueⓇ is a registered trademark of German Automobile Industry Association(Verband der Automobilindustrie).
Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

*2: Figures are shown on 5% scale basis

51

Vista2027
Performance Materials Segment
Opportunities and Risks- OLED market expansion and LCD
market contraction- Slowdown of semiconductor
miniaturization and progress in 3D
packaging technology- Development of a smart society- Intensified competition among
companies

Major Investment
Plans

Main Measures

Sources of Growth- Improve existing products and expand
their applications- Reinforce and increase manufacturing
facilities and other facilities- Develop and launch new products onto
the market- Start the commercial operation of the
new NCK plant- Improve profitability of the inorganic
material (inorganic colloid) business- Photo IPS- Photo VA- OLED materials- Semis materials(ARCⓇ*1, EUV materials,
multi layer materials/ 3D packaging
process materials)- SNOWTEX- Engineering work to strengthen DP3 facility ¥0.5 billion- Installing semiconductor evaluation equipment ¥1.2 billion- Establishing a new NCK plant for semis materials ¥8.5 billion（¥billion）

FY2021(Actual)FY2022(Outlook)

FY2024(Plan)FY2024vs.
FY2021

FY2027(Plan)FY2027vs.
FY2021

Sales

81.7

89.9

102.9

117.2

+21.2

+35.5

OP

27.7

30.5

32.1

38.0

+4.4

+10.3

Capex

5.7

8.3

13.2

‐

+7.5

‐

Depreciation

3.9

4.7

8.7

‐

+4.8

‐

R&D expenses

7.0

7.8

8.9

‐

+1.9

‐

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

*1: ARC® is a registered trademark of Brewer Science, Inc.

52

Vista2027 Performance Materials Segment
Trends of Sales and Profits
Sales

FY2021 FY2022 FY2024 FY2027

FY2021 FY2022 FY2024 FY2027

FY2021 FY2022 FY2024 FY2027

FY2021 FY2022 FY2024 FY2027

FY2021 FY2022 FY2024 FY2027

FY2021 FY2022 FY2024 FY2027

Display Materials

Semis Materials

Inorganic Materials(Inorganic Colloids)OP

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

53

Vista2027 Performance Materials Segment
Sales Growth Rates of Main Products
Main Products

FY2022 vs. FY2021

FY2027 vs. FY2021*2

FY2024 vs. FY2021*2

IPS

Increased Sales(+0%～+9%)

Increased Sales(+0%～+9%)

Decreased Sales(-9%～-0%)

VA

Increased Sales(+0%～+9%)

Increased Sales(+20%～+29%)

Increased Sales(+0%～+9%)

+4%

+10%

-5%

Above +30%

Above +600%

Above +1,800%

+4%

+15%

+15%

KrF(ARC®*1)

+10%

0%

+10%

ArF(ARC®*1)

+19%

+30%

+50%

Subtotal ARC®*1

+18%

+25%

+45%

EUV Materials

+29%

+75%

+255%

Multi Layer Materials

+20%

+85%

+140%

3D Packaging Process Materials+101%

Above +500%

Above +1,000%

+20%

+45%

+85%

+6%

+10%

+15%

+4%

＋5%

+15%

+10%

＋25%

+45%

Subtotal SUNEVER
OLED Materials
Total Display Materials

Total Semis Materials
SNOWTEX
Total Inorganic Materials
Total Segment

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

*1: ARC® is a registered trademark of Brewer Science, Inc.

*2: Figures are shown on 5% scale basis

54Vista2027
Agrochemicals Segment
Opportunities and Risks- Labor shortage due to declining
domestic population- Growing need for measures toincrease food production due to theincrease in global population- Growth of bio-based agrochemicals
and materials- Expansion of market for companion
animals

Main Measures

Sources of Growth- Continue to expand the sales of“GRACIA” etc. and to enhance ourrespective marketing efforts for largescale farmers and agricultural
corporations, and general consumers- Conduct steady development of NC653 (novel herbicide) and NC-656 (novel
herbicide) and create new pipelines- Establish a biological research team
- Start the commercial operation of NBR- ROUNDUP- Fluralaner- ALTAIR- LEIMAY- GRACIA- NC-653(novel herbicide)- NC-520(novel insecticide)- NC-656(novel herbicide)

Major Investment - Herbicide manufacturing facilities ¥4 billion(rounded number)- Engineering work to enhance production of herbicide ¥0.5 billion
Plans- Installing facilities at NBR ¥6 billion(rounded number)（¥billion）

FY2021(Actual)FY2022(Outlook)

FY2024(Plan)FY2024vs.
FY2021

FY2027(Plan)FY2027vs.
FY2021

Sales

65.8

72.9

77.8

82.3

+12.0

+16.5

OP

18.3

19.5

21.7

21.0

+3.4

+2.7

Capex

1.5

4.1

7.2

‐

+5.7

‐

Depreciation

2.7

3.0

3.9

‐

+1.2

‐

R&D expenses

4.2

4.5

4.9

‐

+0.7

‐

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

55

Vista2027 Agrochemicals Segment

Sales Growth Rates of Main Products(before discounts)
Main Products

Types

ROUNDUP

Herbicide

+8%

+10%

+20%

Fluralaner

Animal Health
Products

+23%

+40%

+30%

ALTAIR

Herbicide

+5%

+10%

0%

TARGA

Herbicide

-7%

-20%

-15%

DITHANE

Fungicide

+9%

0%

0%

PERMIT

Herbicide

-4%

-15%

-15%

LEIMAY

Fungicide

+53%

+90%

+115%

GRACIA

Insecticide

+69%

+140%

+185%

QUINTEC

Fungicide

-14%

-20%

-45%

+11%

+20%

+25%

Total Segment

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

FY2022 vs. FY2021 FY2024 vs. FY2021*1 FY2027 vs. FY2021*1*1: Figures are shown on 5% scale basis

56

Vista2027 Agrochemicals Segment
Fluralaner▍Nissan Chemical’s Revenues are Consisted from Following Two Factors
・Sales of Fluralaner to MSD as API* of BRAVECTO and EXZOLT products
・Running royalties received from MSD▍FY2019-FY2022 Fluralaner Quarterly Sales(including royalties)*API: Active Pharmaceutical Ingredient▍FY2019-FY2024 Fluralaner Pro-forma
Sales Image (including royalties)

4Q
3Q
2Q
1Q
FY2020 Actual

FY2021 Outlook

1

FY2021 Actual

FY2022 Outlook

FY2019FY2020

FY2021

FY2022

FY2023

FY2024

1. as of Nov 2021

Royalties revenue used to be recognized in 2Q and 4Q until
FY2020. Due to changes in accounting policies, it has beenrecognized in each quarter since FY2021

 Inventory adjustments for Fluralaner were completed in FY2021.
 Plan a large sales increase in FY2022, due to the shipments shiftedfrom FY2021 to FY2022. Assumed exchange rate is ¥115/$.
 Assumed exchange rate for FY2023 and beyond: ¥110/$.
 The new mid-term plan for FY2027 includes the forecast of patent
extensions and expirations by country and does not include thesales increase associated with the launch of newly developed
BRAVECTO series and EXZOLT.

▍BRAVECTO series and EXZOLT R&D
Several pipeline products being developed by MSD (including new type of BRAVECTO for pets and spot-on solution for livestock)
Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

57

Vista2027
Healthcare Segment
The following organizational changes were implemented on April 1, 2022, in order to achieve
mid- to long-term growth while appropriately capturing changes in the business environment.
▍Organizational Change in “Pharmaceuticals Div.” and “Planning and Development Div.”
PurposeFunctional integration of Drug Discovery and Medical Materials（R&D function in Planning and Development Div., Sales function in Healthcare Div.)
beforePharmaceuticals Division
Planning and Development Dept.
R&D function for Drug Discovery

after

Healthcare Division
Healthcare Products Sales Dept.
Sales function for Pharma andMedical Materials

Custom Chemicals Dept.

Custom Chemicals Dept.

Planning and Development Division

Planning and Development Division

Life Science Materials Dept.
R&D function for Medical Materials

New

Healthcare Business Development Dept.

R&D function for Drug Discovery
and Medical Materials

Information & Communication
Materials Development Dept.
Environment & Energy Materials
Development Dept.

Information & Communication
Materials Development Dept.
Environment & Energy Materials
Development Dept.

Innovative Materials Planning Dept.

Innovative Materials Planning Dept.

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

RenamedIntegration

58

Vista2027
Healthcare Segment
Opportunities and Risks

Main Measures

Sources of Growth- Generic pharmaceuticals on the rise
- Expanded efforts in middle molecule
drug development- Aging population and diversification ofhealthcare- Intensified competition among
companies- Healthcare(HC): Concentrate investmentin the oligonucleotide therapeutics area;
commercialize and expand sales of
medical materials (biointerface control
materials, cosmetic materials, etc.)- Custom Chemicals(CC): Strengthen theexisting business model; be oriented injoint development (peptides, etc.)- Maxacalcitol, Eldecalcitol, obtaining
new contracts for GE API products- Obtaining new contracts for peptides▍Resource Allocation*1（person, rounded number）▍Quantitative Plan*1(¥billion)(¥billion)

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

*1: The figures of FY2021 are those of Pharmaceuticals segment59For Nissan Chemical Group’s Perpetual Growth with the Society
Corporate StateA “Future-Creating Company” that grows through seeking to enrich people and nature
Organizational State

A group of co-creators that face challenges for change with a strong passion
Business
Areas

Information&
communication

Life Science

Environment&
EnergyMaterials/
Services

New Long-term
Business Plan
New Mid-term
Business Plan

Atelier2050

Vista2027
FY2022
Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

60

To Be An Enterprise That Faces Challenges
Toward The Future Through Co-creation

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

61

Disclaimer and Copyright

The forward looking statements in this material are based on information
available at the time of preparation of the material. Although they reflect ourcurrent expectations, these statements are not guarantees of future performance,
but include a number of risks and uncertainties. Actual results may largely differ
from these statements due to various factors which may be beyond company
control.
No information in this material is provided as an offer to buy or sell the shares of
the company. We urge users of the material to make investment decision based
upon own judgment.
All rights reserved to Nissan Chemical Corporation.

Copyright © 2022 Nissan Chemical Corporation All Rights Reserved.

62