May 12, 2016
Nissan Chemical Industries, Ltd.
Start of “Progress2030” Long-Term Business Plan and “Vista2021” Medium-Term Business Plan
“Aiming to Be a Company that Creates the Future”

In April 2013, The Nissan Chemical Group launched “Vista2015 Stage II,” a three-year medium-term businessplan. Since then, we have been executing two basic strategies which are “creating new products and newbusinesses” and “pursuit of business structure reforms.” Regarding new products, active ingredient of veterinary
pharmaceutical, display materials and others have enjoyed growth, while the development of new materialssuch as organic nanoparticle and three-dimensional cell culture media have made progress. We have alsosteadily advanced the development of research infrastructures to accelerate the creation of new materials,
established a local subsidiary in China, and pursued other initiatives. As a result of these efforts, operating profit
for the fiscal year 2015 reached 28.6 billion yen, exceeding the target by 2.6 billion yen.
While global economic trends are becoming increasingly uncertain, we have identified that “foray into newbusiness domains”, “development of new products that match market trends”, and “enhancing R&D capability”
as our tasks for ensuring sustainable growth. To overcome these challenges and secure growth, in April 2016,
we launched “Progress2030,” a long-term business plan for the period to 2030, and “Vista2021,” a six-year
medium-term business plan which shows our ideal situation of 2021.
In developing these plans, we adopted new business model called “Future-Creating Enterprise that responds tosocial needs with unique, innovative technologies.” We will strive to develop in synergy with society by helping tosolve social issues such as global warming, energy problems and food shortages.
1. Outline of “Progress2030"(1) The company’s 2030 vision
A corporate group which provides new values for helping to enrich people’s lives by integrating internaland external knowledge with facing globally-changing society
A group of first-class pioneers who blaze a way to the future with enthusiasm by trusts they have built
and skills they have cultivated(2) Business domains“Information & Communication”, “Life Sciences”, “Environment & Energy” and “Chemicals & Affiliates”
that are based on the five core technologies

1(3) Basic strategies
Entering new fields by evolving, deepening and expanding unique technologies
1) Information & Communication (display, semiconductor, inorganic, optical functional, and sensormaterials)
For display, semiconductor and inorganic materials, we will provide products based ontechnological innovations in the market. We will also create sensor materials by using our existing
technologies and optical functional materials by establishing optical control technologies.
2) Life Sciences (agrochemicals, veterinary pharmaceuticals, pharmaceuticals and biomedicalmaterials)
We will strengthen the pipeline for agrochemicals and pharmaceuticals, also develop newveterinary pharmaceuticals. In addition, we will create biomedical materials that contribute toadvanced medical care using accumulated technologies for biological evaluation and material
design.
3) Environment & Energy (batteries, energy harvesting and thermal control materials)
We will establish a device evaluation technology then supply battery materials and materials that
contribute to efficient use of energy.
4) Chemicals & Affiliates (basic chemicals, fine chemicals, and affiliates)
In addition to responding to business environmental changes, we will introduce high-performancecompounds related to TEPIC®, an epoxy compound.
(4) Business size
Net sales:
300 billion yen (100 from Information & Communication, 100 from Life Sciences,
50 from Environment & Energy and 50 from Chemicals & Affiliates)
Operating profit: 50 billion yen (operating margin: 16.7%)
2. Outline of “Vista2021”
A six-year plan starting in FY2016 (The period is divided into the first three years (2016 to 2018) as Stage I
and the second three years (2019 to 2021) as Stage II)(1) Ideal situation of 2021
Information & Communication and Life Sciences are the driving force for growth while Chemicals &Affiliates achieve a stable profit.
Establish the foundation of Environment & Energy business and a position as a promising chemical
manufacturer that keeps moving forward with a strong presence.
(2) Financial targets (billion yen)
2015
2016
2018
2021
Net Sales
Chemicals
34.3
35.4
38.0
40.5
Performance Materials
51.8
55.3
68.0
82.9
Agrochemicals
47.5
52.1
58.6
67.0
Pharmaceuticals
8.7
7.4
8.1
8.3
Trading, Others & Adjustment
34.6
37.3
44.3
51.3
Total176.9187.5
217.0
250.0
OperatingChemicals
3.9
4.9
4.0
4.5
Performance
Materials
Profit12.0
11.7
15.4
18.4
Agrochemicals
10.8
11.3
12.9
16.7
Pharmaceuticals
2.0
1.4
2.0
2.4
Trading, Others & Adjustment
-0.1
0.4
0.7
-2.0
Total
28.6
29.7
35.0
40.0
Ordinary Income
29.5
30.4
35.6
40.8
Net Income
22.4
23.0
27.1
31.0
Naphtha（¥/ＫＬ）： FY2015 42,800 FY2016 35,400 FY2017 and onward 51,100
FX rate（¥/＄）：FY2015 1H 122 2H 118 FY2016 and onward 115
2

(3) R&D expenses and capex(three-year total, billion yen)

45.0
R&D

2013-2015 Total
53.8

2016-2018 Total

28.8Capex

42.70102030405060

3. Outline of “Vista2021 Stage I”(1) Basic strategies
1) Maximizing the profit from existing products
Boosting the market shares of products for growing fields, driving overseas business expansion,and reducing costs2) Improving marketing power
Identifying market needs by moving closer to customers and obtaining information about advanced
materials
3) Enhancing R&D capability
Improving existing technologies, establishing new technologies, and accelerating the developmentof new products(2) Sources of growth for Stage I
1) Chemicals
i.
Increasing the sales of AdBlue®, a high-grade urea solution, and high purity ammonia
ii.
Creating actual demand for TEPIC® in new grades
2) Performance Materialsi.
Increasing sales of display materials for photo-alignment IPS and HYPERTECH®,
multi-branched organic nanoparticles
ii.
Expanding sales of anti-reflective coating materials for semiconductors, and multilayer processmaterials and launching sensor materials
iii.
Entering the oil & gas business fields with selling chemicals that enhance productivity of oil welliv.
Developing materials for OLED and expanding salesv.
Enhancing production systems and customer services in overseas countries3) Agrochemicals
i.
Expanding sales of ALTAIR®, a paddy rice herbicide, and launching a new product line ofROUNDUP®, a non-selective herbicide
ii.
Establishing overseas subsidiaries and increasing sales in overseas markets
iii.
Expanding application of Fluralaner, an active ingredient of veterinary pharmaceutical, to “spoton” drugs for transdermal administration for dogs and cats4) Pharmaceuticals
i.
Deriving new products and enhancing the pipelineii.
Expanding the business of custom manufacturing service for active ingredients of generic drugs(4) Initiatives for Stage II and onward
1) Information & Communicationi.
Developing heat-resistant lenses, light control film and optical interconnect materials
ii.
Creating next-generation display and semiconductor materials

32) Life Sciencesi.
Developing NC-515 insecticide, new fungicides and paddy rice herbicides
ii.
Jointly developing NIP-022, a platelet increasing agent and promoting the researchcollaboration of antifungal drugsiii.
Achieving global standardization of cell culture materials
3) Environment & Energyi.
Developing materials for secondary batteries and fuel cellsii.
Creating energy harvesting materials4) R&Di.
Acquiring seeds in the field of biomedical materials
ii.
Introducing cutting-edge technologies through open innovationsiii.
Developing new business fields by strengthening and fusion of core technologies(5) Financial indicators
Operating margin:
15% or higher
ROE:
14% or higher
R&D expenses / Sales ratio:
8% or higher
Dividend payout ratio:
To be increased in a stepwise manner from FY2016 and onward,
aiming for 40% in FY2018Total payout ratio:
Maintaining 70%
The Nissan Chemical Group will steadily act in accordance with the basic strategies in this plan and will makeconcerted efforts to realize its corporate vision of becoming “a corporate group that contributes to humansurvival and development.”

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