May 12, 2016

Nissan Chemical,‐where unique & solution meetLong-term Business Plan ”Progress2030”
Mid-term Business Plan “Vista2021”

Translation of presentation materials for the investor meeting held in Tokyo on May 12, 2016

Contents

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Nissan Chemical,‐where unique & solution meet2

Nissan Chemical,‐where unique & solution meet

1. “Vista2015 StageⅡ” :Review

Basic strategies of StageⅡ

Nissan Chemical,‐where unique & solution meet

30

26.0
22.0

20

19.6

100
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2013

2014

2015 4

Financial results(vs. Plan)

Nissan Chemical,‐where unique & solution meet

Net SalesOP20040171.2

163.7
150

170.0
156.0
22.2

100

25.3

180.0
176.9
28.6

35
30

26.0
25

22.0

19.6

20155010500

2013
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OP（Plan）

2014
OP（Actual）

Sales（Plan）

2015
Sales（Actual）

5

Financial results(vs. Plan)
PharmaFormer segmentation basis

30
25

1.4
Agrochemicals

3.5
7.6

Performance Mat.

15
10

11.3

12.0

Chemicals

4.9
PlanActual

Others +1.2-5
Chemicals
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Performance

AgroPharma-0.4

High purity sulfuric acid and TEPIC
for electronic materials: Decreased

4.5-0.1-1.3+0.7

Display materials: Sales expansionin smartphone use

50+3.2

Fluralaner, ALTAIR and ROUNDUP:
Steady growth

10.8
20-2.1

LIVALO: Decreased due togenerics gaining market share

28.6

26.0

Nissan Chemical,‐where unique & solution meet

OthersOthers: Trading, Others, Adjustment

6

Financial Indicators(vs. Plan)

Nissan Chemical,‐where unique & solution meet

PlanActualOP margin

14.4%

16.2%

ROE

13.4%

14.6%

R&D expenses /Sales ratio

9.6%

8.9%

Over 30%

30.7%

Dividend payout ratio

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7Creating new Businesses &new products

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Nissan Chemical,‐where unique & solution meet

8（Materials Research Lab）

Pursuit of business structurereforms

Nissan Chemical,‐where unique & solution meet

Natural Gas Pipeline
NCI Toyama Plant

Sea of Japan

Ishikawa
Niigata
Itoigawa City
Naoetsu LNG
Terminal of INPEX

Kanazawa City

Toyama CityToyama

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9

Towards the future growth

Nissan Chemical,‐where unique & solution meet

2000

400

1500

300

1000

200

500

10000
2013

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2014

2015
10

New business plans

Nissan Chemical,‐where unique & solution meet

We strive to create better future for human andenvironment by helping to solve social issues

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11Business model

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Nissan Chemical,‐where unique & solution meet12

Nissan Chemical,‐where unique & solution meet

2. “Progress2030” : Outline

Long-term perspective

Nissan Chemical,‐where unique & solution meet

Business environment
Globalenvironmental
protection

Foodshortages

2030 vision
Speeding up
data
communication

Energyproblems

Longevity
Diversity

Confidential/AgingMedicalAdvancedinflation

medical care
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Business domains

Nissan Chemical,‐where unique & solution meet

Information &Communication

Life Sciences

Environment &Energy

Fine
OrganicSynthesis

OpticalControlChemicals & Affiliates
FunctionalPolymer
DesignUltrafine
Particle
Control

Biological
Evaluation

Core Technologies

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15

Basic strategy

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Nissan Chemical,‐where unique & solution meet

16

Information & Communication

Nissan Chemical,‐where unique & solution meet

Establishing
optical control technologies

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17

Life Sciences

Nissan Chemical,‐where unique & solution meet

Creating biomedical materials

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18

Environment & Energy

Nissan Chemical,‐where unique & solution meet

Establishing a device
evaluation technology（Lithium-ion battery）
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19Chemicals & Affiliates

Nissan Chemical,‐where unique & solution meet

Introducing
high-performance compounds

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20

Business scale

Nissan Chemical,‐where unique & solution meet

Information &Communication
Display materials

Life Sciences

Semiconductormaterials

Optical functional
materials

Sensor materials

Agrochemicals

Veterinary
pharmaceuticals

Pharmaceuticals

Biomedical materials

Inorganicmaterials

Environment &Energy

Basic chemicals
Battery materials

Fine chemicals
Fine
Organic
High-performancecompoundSynthesis
Functional
Polymer
DesignEnergy harvestingmaterials

Affiliates
Thermal control
materials

OpticalControlChemicals & Affiliates

UltrafineParticle
Control

Biological
Evaluation

Core Technologies
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21

Business scale

Nissan Chemical,‐where unique & solution meet

Information &Communication

Life Sciences

Environment &Energy

Fine
Organic
Synthesis

OpticalControlChemicals & Affiliates
Functional
Polymer
DesignUltrafineParticle
Control

Biological
Evaluation

Core Technologies
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Nissan Chemical,‐where unique & solution meet

3. “Vista2021” : Outline
StageⅠ（2016~2018）
StageⅡ（2019~2021）

Ideal situation of 2021

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Nissan Chemical,‐where unique & solution meet24

Target: Net sales

Nissan Chemical,‐where unique & solution meet

Billion yen

300

Others

250

217.0

200

176.9

150

34.6
8.7
47.5

100

187.5

44.3

37.3

8.1

7.4

250.0

FY18 vs. FY15 +9.7
FY21 vs. FY15 +16.7

51.3

Pharma8.3

FY18 vs. FY15
FY21 vs. FY1567.0

Agrochemicals
FY18 vs. FY15 +11.1
FY21 vs. FY15 +19.5

58.6

52.1
68.0

82.9

51.8

55.3

34.3

35.4

38.0

40.5

2015

2016

2018

2021

Chemicals

Performance

500Others: Trading, Others, Adjustment
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AgroPharma-0.6-0.4

Performance Mat.
FY18 vs. FY15 +16.2
FY21 vs. FY15 +31.1

Chemicals
FY18 vs. FY15
FY21 vs. FY15+3.7+6.2

OthersNaphtha（¥/KL）:
FY2015 42,800 FY2016 35,400 FY2017 onward 51,100
FX rate（¥/$）:FY2015 1H 122 2H 118 FY2016 onward 115

25

Target: OP

Nissan Chemical,‐where unique & solution meet

Billion yen

40.0

4540

35.0

35

0.7
2.0

28.6

30

2.0

0.4
1.4

10.8

11.3

25
20

29.7

12.0

50-5

11.7

4.0

4.5-2.02015

2016

2018

2021

Others: Trading, Others, Adjustment
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18.4

4.9

Performance

AgroPharma

FY18 vs. FY15
FY21 vs. FY15

FY18 vs. FY15
FY21 vs. FY153.9-0.1
Chemicals+0.8-1.90+0.4

Agrochemicals

12.915.4

FY18 vs. FY15
FY21 vs. FY15Pharma
16.715102.4Others+2.1+5.9

Performance Mat.
FY18 vs. FY15
FY21 vs. FY15+3.4+6.4

Chemicals
FY18 vs. FY15
FY21 vs. FY15+0.1+0.6

OthersNaphtha（¥/KL）:
FY2015 42,800 FY2016 35,400 FY2017 onward 51,100
FX rate（¥/$）:FY2015 1H 122 2H 118 FY2016 onward 11526

Resource allocation
Three year total
Capex： FY13-15 Acceptance basisFY16-18 Production commencement basis
Billion yen

53.8

5040

45.0

42.7

18.9

20413
400

74428
72448
85

10.1

300

28.8

172

169

165

184

1942015

20162018

Life Sciences

Corporate

174

11.8

200

5.8
24.3

100

20.8

20.4
14.9

00
13-15
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500

5.7

8.1

10Person

7.2

22.3

30

Nissan Chemical,‐where unique & solution meet

16-18

Performance Mat.

13-15

16-18

Life Sciences

OthersPerformance Mat.

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Nissan Chemical,‐where unique & solution meet

4. “StageⅠ(FY2016～2018)” : Outline

Basic strategies

Nissan Chemical,‐where unique & solution meet

2030
StageⅡ2019-2021
StageⅠ2016-2018
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29Sources of growth

Nissan Chemical,‐where unique & solution meet

Chemicals

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（LED）

30

Sources of growth

Nissan Chemical,‐where unique & solution meet

Performance Materials

MicrolensWiringConfidential

ITOelectrode31Sources of growth

Nissan Chemical,‐where unique & solution meet

Agrochemicals

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Sources of growth

Nissan Chemical,‐where unique & solution meet

Pharmaceuticals

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33

Initiatives for 2019 onwards

Nissan Chemical,‐where unique & solution meet

Information & Communication（Image of a photo shoot with smartphone）
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34

Initiatives for 2019 onwards

Nissan Chemical,‐where unique & solution meetLife Sciences

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35

Initiatives for 2019 onwards

Nissan Chemical,‐where unique & solution meet

Environment & Energy（Solar panel）
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Initiatives for 2019 onwards

Nissan Chemical,‐where unique & solution meet

R&D

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37

Financial indicators

Nissan Chemical,‐where unique & solution meet

FY2015
Actual

FY2018TargetOP margin

16.2%

15%

ROE

14.6%R&D expenses /Sales ratio

8.9%

Dividend payout ratio

30.7%

Total payout ratio
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70.8%

or higher

14%
or higher

8%or higher

40%
Maintaining

70%

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Create new technologies and productsthat respond to visible/potentialsocial needs

Core technologies
ICT evolution

Fine Organic
Synthesis

Business domain

Functional
Polymer Design
Food shortages
Enhance well-being

UltrafineParticle Control

LifeSciences

Advanced medical care

BiologicalEvaluation
Energy demand rise

Optical Control
Reduce environmental load

Global environmental protection

Environment&Energy

Supply display and semiconductor materials
Offer sensor materials

Chemicals & Affiliates

Information&Communication

Develop optical interconnect materials
Supply agrochemicals
Provide veterinary pharmaceuticals
Develop pharmaceuticals
Create biomedical materials
Supply battery materials
Develop energy harvesting materials
Create thermal control materials
Promote Responsible Care activities

Diversity

Respect individuality and create friendly working environment

Sensible business activity

Strengthen corporate governance and make proper disclosure

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Nissan Chemical,‐where unique & solution meet

Forward Looking Statements
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 bebeyond company control.
No information in this material is provided as an offer to buy or sell theshares of the company. We urge users of the material to make investment
decision based upon own judgment.

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