May 13, 2022
Company Name: Nissan Chemical Corporation
Representative: YAGI Shinsuke, Representative Director, President & COO(Code number: 4021, TSE Prime Market)
Contact: MATSUOKA Takeshi, Head of the Corporate Planning Department(Tel:+81 3-4463-8120)

Long-term Business Plan "Atelier2050" and Mid-term Business Plan "Vista2027" Kicked Off-To Be An Enterprise That Faces Challenges Toward The Future Through Co-creationIn April 2019, we, Nissan Chemical Corporation ("Company") and its group companies (collectively"Group") started "Vista2021 Stage II", the second three years of the mid-term business plan, "Vista2021".
Looking ahead to FY2030 under the long-term business plan, "Progress2030", we set our ideal situation
in FY2021 as a stepping-stone, and defined our basic strategies: "Increase the profitability of productsthat are sources of growth", "Strengthen ability to create new products", and "Improve ability to adapt tosocial/market changes", to achieve that long-term plan. In the last fiscal year of the "Vista2021 Stage II",
our steady implementation of measures in line with those strategies resulted in an operating profit of 51
billion yen, exceeding the plan by 8 billion yen, and achieving the operating profit target of the"Progress2030", 9 years ahead of schedule.
In the "Vista2021 Stage II", we identified the following challenges to tackle for our future development:"Further strengthen the development of new products", "Refine business plans", and "Enhance andimprove business efficiency".
Considering those issues and recognizing the remarkable changes in the business environment,
which was the premise of the "Progress2030", and the divergence of part of the plan from the actual
situation, we updated our business plans. In April 2022, we launched our new long-term and mid-termbusiness plans. The former is "Atelier2050", which gives the Group a path to contribute to solving social
issues and keep growing for the future. And the latter is "Vista2027", which indicates the ideal state of theGroup in FY2027 as a stepping-stone to attain the long-term plan.
1. Philosophy Pyramid
To determine our direction for the future and clarify the raison d'etre of the Group, we redefined ourcorporate philosophy. For the "Basic CSR Policy", we renamed it to the "Course of Action" to express ourstance on focusing on sustainability management from now, let alone CSR. In addition, we newly set up"Where it all begins" as our corporate slogan, to spread around.

12. Overview of Long-term Business Plan "Atelier2050"(1) Ideal State in FY2050[Ideal State of Each Business Area]<Information & Communication>
We offer a variety of materials corresponding to all technical innovations in display andsemiconductors, constituting our broad product portfolio. The expansion of IoT sensing materials
contributes to operationalizing sensing systems, such as biomimetic sensors.
2<Life Science>
By establishing the microbial control technology, we operationalize medical materials and microbial
materials in addition to microbial agrochemicals, and those businesses contribute to solving diverse social
issues. The agricultural business area is expanding by providing chemical and microbial agrochemicals
with high safety and extremely low environmental load. In the veterinary medicine business area, we
commercialize multiple types of veterinary pharmaceuticals. In the healthcare business area, adding to
the drug discovery anchored in oligonucleotide, peptide, and small molecule therapeutics, we offer
specific products and services for various medical means, such as microbiome-based and cellulartherapies.
<Environment & Energy>
A novel business area grows with fuel cell materials, gas separation membrane materials, and othermaterials indispensable for achieving carbon neutrality.
<Materials & Services>A stable revenue basis is established by acquiring competitiveness through shifting to high valueadded products and adapting to social changes.

(2) Overview of Basic Strategies
1) Deeply exploit and expand business areas
i. Information & Communication
We develop materials for the growing next-generation display to join that market. We
also provide materials compatible with the evolving semiconductor technologies and enter
into new businesses, such as the sensing area and photo-functional material market.

32)

3)

ii.

Life Science
We join the business/market of microbial agrochemicals and enter into the healthcare
and environment-related areas by utilizing microbial control technology.

iii.

Environment & Energy
We develop materials related to batteries/cells that contribute to solving environmental
issues, renewable energy materials, and CCUS* materials.
*CCUS=Carbon dioxide Capture, Utilization, and Storage

Pursue sustainable management furtheri. Attain the "Nissan Chemical Sustainable Agenda*" and expand product/service lines
specified in the Agenda
We formulate the "Nissan Chemical Sustainable Agenda" to achieve a sustainable
society and to sustainably enhance our corporate value. In concrete terms, we list specificproducts and services which help solve social issues and set the "Key Performance
Indicator (KPI)". By extending the sales and expanding the breadth of those products andservices, we seek out the Group's social value.
*Agenda=Issues to address and plan to implementii.

Achieve carbon neutrality (SCOPE1+2)
We achieve carbon neutrality by changing raw materials and fuels, promoting energy
savings, adopting renewable energy, using carbon offset fuels, introducing the carbon credit
system, and taking other related measures.

iii.

Cultivate a corporate culture where the future is co-createdWe establish and operate a personnel system that integrates personnel with diversevalues, attracting all the personnel to work under that system.
We cultivate human resources capable of grasping up-to-date information and clients'
needs and bridging internal and external business environments to create to-be-dedicatedfuture businesses passionately. Also, we establish and operate systems and foundations tofoster such human resources.

Renovate management and business foundations
We accelerate the value-creation process by utilizing digital technology.
i. We fuse virtual and physical space and by using AI analysis, increase the speed of thecreation process of values.
ii. We utilize digitalization, automatization, and robotization to focus on creative work.

43. Overview of Mid-term Business Plan "Vista2027"
It is a six-year plan starting in FY2022 as the first year. The first three years from FY2022 to FY2024
are "Stage I", and the second three years from FY2025 to FY2027 are "Stage II".
(1) Ideal State in FY2027"While existing businesses are robustly driving the business performance, new core technologies*
are consistently acquired for expanding and enhancing business areas""Organized sustainability-related initiatives are promoted and related information is offered internallyand externally""As the digital foundation is being established, business activities are conducted based on the latest
information on clients and markets"* Microbial control and information science(2) Financial Targets(¥Billion)
FY2021
ActualSales Chemicals

FY2022
Outlook

FY2024Plan

FY2027
Plan

37.6

38.6

37.6

40.1

Performance Materials

81.7

89.9

102.9

117.2

Agrochemicals

65.8

72.9

77.8

82.3

Healthcare*

6.6

5.9

7.2

11.5

Others*

16.3

11.7

29.5

33.9

Planning and Development*3

0.0

0.0

1.3

4.4

208.0

219.0

255.0

285.0

Chemicals

3.8

2.2

3.5

3.9

Performance Materials

27.7

30.5

32.1

38.0Agrochemicals

18.3

19.5

21.7

21.0

Healthcare*

0.9

2.1

2.1

4.3

0.3

-0.8

-0.9

-0.2

Planning and Development*-3.4

-5.2

-4.7

-4.7

Total

51.0

53.5

58.5

67.0

Ordinary Income

53.7

54.1

59.5

68.0

Net Income

38.8

39.6

44.0

50.0

12

Total
OP

1Others*

23

Exchange Rates (¥/$) FY2022
FY2023~: ¥115 (First half); ¥115 (Second half): ¥110*1: Actual results for FY2021 are the figure of "Pharmaceuticals" segment.
*2: "Others" includes Planning& Development Division, Trading, Others, and Adjustment segments.
*3: The figures of "Planning and Development" are internal figures of "Others".
Impact of organizational reformation on April 1, 2022
(Impact of the transfer of the R&D expenses to Planning and Development Division)
FY2022; ¥1.45 billion, FY2024; ¥1.26 billion, FY2022; ¥1.27 billion5(3) R&D Expenses and Capex (¥Billion)

55.0

R&D Expenses

49.7
55.3

Capex

42.5

0.0

20.0

40.0

*1

*2

Total of FY2022-2024
Total of FY2019-2021

60.0*1 Acceptance basis*2 Production commencement basis(4) Basic Strategies
1) Deeply exploit business areas and increase marketing ability
We strive to enhance our R&D capability and improve our planning ability, towards therealization of the ideal state in FY2050.
i. Refine existing core technologies and deeply exploit and expand development areas
ii. Incubate new core technologies (microbial control and information science)iii. Enhance marketing power and planning ability2)

Promote sustainable management
We foster our efforts and propel measures for sustainability and facilitate offering
sustainability-related information internally and externally.
i. Set up "Sustainability Promotion & IR Department" and propel related measures in an
organized approachii. Enhance committee activities (such as intensifying company-wide efforts by setting up theSustainability Promotion Committee and section meetings)

3)

Strengthen the creation and co-creation process of values
We propel building our business foundations and environment that help mutualcommunication and improvement in efficiency and facilitate the creation and co-creation of newvalues.
i. Revamp the existing personnel system and human resource development for attaining
business strategies
ii. Set up "Digital Transformation Department" and facilitate digital transformation (DX) andbusiness foundation renovation64)

Expand market shares and profits of existing businesses
To extend the sales of existing products that are the sources of growth and develop new
products consistently, we strive to maintain and improve the foundations for the manufacturing,
research and development, and other processes for existing businesses and reduce the cost ofexisting products.
i. Chemicals
 Improve the profitability of ammonia-related business after the withdrawal from themelamine business Expand the sales of high-purity sulfuric acid
 Expand the sales and improve the profitability of cyanuric acid and "HI-LITE"
 Develop business of "Venus Oilclean", a microorganism formulation
ii. Performance Materials
 Improve existing products and expand their applications
 Reinforce and increase manufacturing facilities and other facilities
 Develop and launch new products onto the market
 Improve the profitability of the inorganic material (inorganic colloid)businessiii. Agrochemicals
 Continue to expand the sales of "GRACIA" etc. and to enhance our respective
marketing efforts for large-scale farmers and agricultural corporations, and general
consumers
 Conduct steady development of NC-653 (novel herbicide) and NC-656 (novelherbicide) and create new pipelines
 Establish a biological research teamiv. Healthcare Healthcare: Concentrate investment in the oligonucleotide therapeutics area;
commercialize and expand the sales of medical materials (biointerface control materials,cosmetic materials, etc.)
 Custom Chemicals: Strengthen the existing business model; be oriented in joint
development (peptides, etc.)(5) Key Performance Indicators (KPI)
1) Financial indicators (FY2022-FY2027)

2)

OP margin

Above 20%

ROE

Above 18%

Dividend Payout Ratio

55% (Increased from 44.9% in FY2021)

Total Payout Ratio

75%

Non-financial indicators (FY2027)
Nissan Chemical Sustainable Agenda(total sales of products and services that contribute tosolving social issues/consolidated net sales)
7

Maintain at least 55%

Reduction of GHG emissions

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

Positive response rate in survey of employee attitude At least 65%
on human resource development
Proportion of female researchers

At least 18%

The Group will consistently implement measures based on the basic strategies laid in those plansand pursue our corporate philosophy, "Contribute to the protection of the global environment and theexistence/development of humanity, offering the value sought by society."--- END ---8