Value Creation Process
The Nissan Chemical Group is now at an unprecedented turning point in its history, and we are determined to be a leader
in creating the future. With our Corporate Philosophy as the foundation of our business activities, we aim to fill the futureof people and society with hope and happiness through the provision of irreplaceable “Must-Have” products and services
by leveraging the technologies we have cultivated over the years.

Contribute to the protection of the global environment
and the existence/development of humanity,
offering the value sought by society.

Social Issues (External Environment)
Global environmental conservation
Climate change
Labor shortage
Food issues

InputsLow birthrate and aging population
Health issues

Business Model(Fiscal year ended March 31, 2023)

Nissan Chemical’s Strengths

Human Capital(Non-consolidated)

R&D capabilities

Number of employees: 1,959(Number of Researchers*1: 465)

Marketing Ability◎ Related Information: “Research and Development” P25-27

Financial Capital

Concentrate on Four Business Domains

Net assets: 221.5 billion yen
Total assets: 298.7 billion yen
Equity ratio: 73.1%

Intellectual Capital

Information &Communication

Life ScienceMaterials & Services

Environment & Energy

Outputs

Outcomes(Fiscal year ended March 31, 2023)

Vista2027
To Be An Enterprise That Faces Challenges
Toward The Future Through Co-creation

Human Capital (Non-consolidated)・Engagement with stakeholders(Emphasis on dialogue with employees)

2022-2027 Numerical Targets

Ratio of high engagement level employees*4: 16.3%(FY2021: 16.2%)

Ratio of researchers in regular positions: 38% (FY2021: 39%)

Financial Indicators

Financial Capital◦ Operating Margin: Above 20%

Sales: 228.1 billion yen (FY2021: 208.0 billion yen)
Net income: 41.1 billion yen (FY2021: 38.8 billion yen)
ROE: 19.4% (FY2021: 19.2%)◦ ROE: Above 18%◦ Dividend Payout Ratio: 55%◦ Total Payout Ratio: 75%◎Related Information: “Financial Review” P85-92

Non-financial IndicatorsIntellectual Capital

Number of patents held: 6,261
R&D expenses: 16.8 billion yen
Sales-to-R&D expenses ratio: 7.4%

Number of Patent Applications: 378 (FY2021: 415)

Manufacturing Capital

Manufacturing Capital (Non-consolidated)◦ Nissan Chemical Sustainable Agenda(A plan to pursue “what we can do for the future of the globe andhuman” by providing products and services that contribute tosolving social issues)

Providing Nissan Chemical’s
unique "Must-Have" products
and services

CAPEX: 20.3 billion yen
Manufacturing base
Japan: 7 sites, Overseas: 3 sites(products that are irreplaceable)

Social Capital

Actualizing a sustainable
future for our planet

Production volume: 563,130 tons (FY2021: 736,436 tons)

Social Capital

Actualizing sustainable
comfort for all

Reduce CO2

Solve health issues
for humankind andanimals

Reduce waste

Achieve a smart
society

Conserve aquaticenvironments

Solve foodshortages

Key Performance
Indicator (KPI)
Rate of total sales ofproducts and services
that contribute to solvingsocial issues in
consolidated net sales

Maintainat least

55%

・Engagement with stakeholders

Engagement with stakeholders(Emphasis on dialogue with investors and analysts)

 aintenance and promotion of good relationships with local communities・M◦ GHG emissions:

Reducing by at least 30% from FY2018 level→ Aiming for carbon neutrality in 2050

(natural observations in Nissan Bio-Park, plant tours, etc.)◦ Positive response rate in survey of employee attitude

Strategic Decisions by the Board of Directors

Natural Capital(Non-consolidated)
Raw materials: 423,024 tons
Energy input: 90.6 thousand kL*2
Water resources: 27.8 million m3 *3Management Foundation

Natural Capital (Non-consolidated)
GHG emissions from business activities:
328 thousand tons-CO2e

on human resources development: ◦ Proportion of females in the regular position:

At least 13%◦ Proportion of female researchers in the regular position:(FY2021: 345 thousand tons-CO2e)(Corporate Governance / Compliance / Risk Management)

At least 18%◎ Related Information: Human Capital, Intellectual Capital, Financial Capital,Manufacturing Capital, Social Capital, Natural Capital P21-30*4 In an employee questionnaire survey on work enthusiasm and attitudes, 28 indicators were determinedbased on questions related to “spontaneous action”
and “positive emotions”, etc., to measure the level ofengagement.

*1 approximate number*2 crude oil equivalent*3 w
 ater resources input minus
effluent

Nissan Chemical Corporation

19

Integrated Report 2023

At least 65%

Nissan Chemical Corporation

20

Integrated Report 2023

Value Creation & Growth Strategies

Nissan Chemical’s Corporate Philosophy