Long-term and Mid-term Business Plans Overview andProgress

The Nissan Chemical Group will take on the challenge of co-creating the future by explaining to stakeholders our direction
to aim for and gaining their understanding and empathy. We aim to contribute to the realization of a sustainable society
as a member of society by achieving mid- to long-term growth and improvement of corporate value with a strong desire
and rich imagination to create the future.

2024

Operating profit: 51.0 billion yen
ROE: 19.2%
Total payout ratio: 76%

Long-term Business Plan

2022

Atelier2050

Mid-term Business Plan

FY2021

Vista2027 Stage II

Mid-term Business Plan

Ideal State in 2050
Corporate State	A “future-creating company”
that grows through seeking toenrich people and nature
Organizational State	A group of co-creators that facechallenges for change with astrong passion

Vista2027 Stage I

Progressof FY2022

Financial Indicators
300

Non-financial Indicators■Operating profit ■Sales

200

255.0

237.3

228.1

208.0

200

285.0

100(billion yen) 0

52.3

51.0

54.7

58.5

67.0

2024 (plan)

2027 (plan) (FY)

2021

2022

2023 (forecast)

2021

2022

2023 (forecast)

2024 (plan)

2027 (plan)

208.0

228.1

237.3

255.0

285.0

(billion yen)

Sales
Operating profit

51.0

52.3

54.7

58.5

67.0

Ordinary income

53.7

55.8

55.5

59.5

68.0

Net income

38.8

41.1

41.5

44.0

50.0

Operating profit and ordinary income reached the record high for 9 consecutive years, and net income reached the record high for 10 consecutive years

2021

2022

2023 (forecast)2024-2027 (plan)

Operating margin

24.5%

22.9%

23.1%

Above 20%

ROE

19.2%

19.4%

18.6%

Above 18%

Dividend payout ratio

44.9%

56.3%

55.1%

55%

76%

78%

Total payout ratio

FY2027 Target

Above 55%

Maintain at least 55%

327,663 tons-CO2e(9.8% reduction compared to FY2018)

254,377 tons-CO2e(Reduce by at least 30% compared to FY2018)

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

60.5%

At least 65%

Proportion of female researchers

14.8%

At least 18%

GHG emissions (Scope1+2)

15050

FY2022Rate of total sales of Nissan Chemical
Sustainable Agenda target products andservices in consolidated net sales

Nissan Chemical Corporation

4375% (target)

Integrated Report 2023

75%

R&D Expenses and Capex■Total FY2019-2021 ■Total FY2022-202460
5055.055.3*249.7
42.5*140302010(billion yen) 0*1 Acceptance basis*2 Production commencementbasis

R&D Expenses

Nissan Chemical CorporationCapex

44

Integrated Report 2023

Value Creation & Growth Strategies

2027“Atelier2050” Long-term Business Plan
“Vista2027” Mid-term Business Plan
Start

Sales: 208.0 billion yen2050

“Atelier2050” Long-term Business Plan
resolved. This plan sets out the path for the Group to contributeto solving social issues and keep growing for the future, with theideal corporate state in 2050 of “a future-creating company thatgrows through seeking to enrich people and nature” and theideal organizational state in 2050 of “a group of co-creators thatface challenges for change with a strong passion”.

Business Areas
Solving
Social Issues

Protect the global environment

Mitigate climate changes

Address health issues

Solve food issues

Achieve a smart society

Improve quality of life

Information &Communication

1

Ideal State in 2050

Corporate State

Semiconductormaterials
Display materials
Photofunctionalmaterials

Organizational StateA “future-creating company” thatgrows through seeking to enrichpeople and nature

2

A group of co-creators that facechallenges for change with a strong
passionBusiness

3

Life Science
Agrochemicals
Animal health products
Biomedical materials
Pharmaceuticals(small molecules,oligonucleotides, peptides)

 ensing Systems
S<IoT sensor materials><Biomimetic sensors>

Expansion
intonew areas

Metamaterials

Environment &Energy

4Secondarybatterymaterials and fuel cellmaterials

Next-generation
solar cell materials
CCUS materials

CO2 reduction system

Growing businesses

Business Areas

Social InvolvementG rowth is achieved with Information &Communication, Life Science, and Environment & Energy as growing businessareas, and Materials & Services as acore business area.

E xpanding businesses and productsthat contribute to solving social issues

L ife 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 full-fledged andcontributes greatly to the global environment.

A dvancing the Groupʼs business management that prioritizes less effect on
the global environmentB ecoming a corporate group that istrusted and valued by the local community and whole society

Employees State[Basic Stance]Valuing the integrity as thestrength
We trust and respect people. We
achieve things with responsibility. We
make efforts for someone else andwork together as well. Integrity is theadvantage and identity of the Group.
Taking a step forward with thevision
We explore individual ideals. To realize
that, we transcend the traditional framework, go through repeated trial and error and face challenges for change.
Transcending collaboration toco-creation
We evolve collaboration into co-creation,
having the courage to go through clashes of diverse ideas and enthusiasm.

[Existingtechnology]

Functional Polymer
DesignFine Organic Synthesis[Newtechnology]

Microbial Control

Core businesses
Ultrafine Particle
Control

45

Integrated Report 2023

Biological Evaluation

Optical Control

Information Science

Basic Strategy

1

2

3

Deeply exploit and expand
business areas

Pursue sustainable management
further

Renovate management andbusiness foundations

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

Attainthe “Nissan Chemical Sustainable
Agenda” and expand product/service lines
specified in the Agenda

Fusevirtual and physical space and strength
en AI analysis

Information & Communication- Develop materials for the next-generation
display and join that market, and provide
materials that are compatible with theevolving semiconductor technologies- Enter into new businesses, such as thesensing area and photofunctional material
marketAchieve carbon neutrality (Scope 1+2)
Cultivatea corporate culture where the fu
ture is co-createdLife Science- Expand into microbial agrochemicals, andadvance into healthcare and environment-related areas with microbial controltechnology
Environment & Energy- Develop materials related to batteries/cells
that contribute to solving environmental issues, renewable energy materials, andCCUS materials

Nissan Chemical Corporation

I ndustrial chemicals
Colloidal silica
Affiliate companies

Microbiome<Agriculture/Healthcare> <Microbial materials>
Biostimulant

CoreTechnology

Materials &Services

Nissan Chemical Corporation

46

Integrated Report 2023U
 tilize digitalization, automatization, and robotization to focus on creative work

Value Creation & Growth Strategies

Considering that the business environment has changed significantly since the previous long-term business plan was formulated, we once again discussed the social issues and social changes with a view to 2050. As a result of these discussions, we haveformulated a long-term business plan “Atelier2050”, by backcasting from the necessary initiatives and issues that need to be

“Vista2027” Mid-term Business Plan

Long-term and Mid-term Business Plans Topics

Mid-term business plan “Vista2027” is a six-year business plan,
starting in FY2022, formulated as a stepping-stone on the way tothe ideal state set forth in our long-term business plan

1 Nissan Chemical Sustainable Agenda“Atelier2050”. We aim to achieve sustainable growth with thisplan which set the first three years (2022-2024) as Stage I, andthe second three years (2025-2027) as Stage II.

Ideal State of theCompany in 2027
While existing businesses
are robustly driving thebusiness performance,
new core technologies are
consistently acquired forexpanding and enhancing
business areas

Areas of Contribution through Sustainable Agenda Target Products and Service

As the digital foundation is
being established, businessactivities are conductedbased on the latest information on clients and markets

Key Performance
Indicator (KPI)
Actualizing a sustainable
future for our planet

Refine existing core technologies and deeply exploit and expand development areas
Incubate new core technologies (microbial control and information science)Enhance marketing power and planning ability

Reduce waste

Conserve aquatic
environments

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

Maintainat least
Solve health issues
for humankind andanimals

Achieve a smart
societySolve foodshortages

55％◎ Related Information: Materiality P31-32❶

We strive to enhance ourR&D capability and improve our planning ability, towards the realization of the ideal state in
FY2050

Reduce CO2

Organized sustainability-related initiatives are promoted and related information
is offered internally andexternallyActualizing sustainable
comfort for all

Deeply exploit
business areas andincrease marketing
ability

We define the rate of total sales of products and services that
contribute to solving social issues in relevant areas in consolidated net sales as a key performance indicator (KPI), setting a targetof “maintaining at least 55%” in the mid-term business plan Vista2027. Looking ahead to 2050, we would like to further expand
our target products and services by fostering core technologies,
and realize sustainable development for society and the Group.

BasicStrategies❷❸
Strengthen thecreation andco-creation processof values

Promote sustainable
management

We foster our efforts
and propel measures forsustainability and facilitate offering sustainability-related informationinternally and externally

We propel building ourbusiness foundations andenvironment that help
mutual communicationand improvement in efficiency and facilitate thecreation and co-creationof new values

S trengthen corporate
governanceR evise the existing personnel system and humanresource development for
attaining business strategies

S et up “SustainabilityPromotion & IR Department” and propel related measures in an organized approachSet up “Digital Transformation Department” andfacilitate digital transformation (DX) and businessfoundation renovation

Enhance committee activities (intensifying company-wide cross-sectional efforts by setting up
the Sustainability Promotion Committee and section meetings)

Nissan Chemical Corporation❹
Expand market sharesand profits of existing
businesses

To extend the sales of existing products, that are
the sources of growthand develop new products consistently, we will
implement measures
such as infrastructuredevelopment and cost
reductions for existingproducts.
◎ Related Information:
Business Segments P53-54
Main Products and Services P55-56
Business Strategies P57-66
Research and Development P25-27
Intellectual Property P28

2 Achievement of Carbon Neutrality by 2050
In order to achieve carbon neutrality by 2050, we are working onconverting fuel and feedstock, promoting energy saving, adopting renewable energy, and examining zero emissions of N2O
from nitric acid production facilities.

In FY2022, GHG emissions decreased due to the melamine
production shutdown, and the conversion of boiler fuel at theOnoda Plant.

● Trend of GHG Emissions (SCOPE1+2)

△30%

400
300

363

327

318345Integrated Report 2023

328
254

200
1000
(1,000 tons-CO2e)[Major Initiatives]

Net Zero2018
Vista2021

2019

2020

2021

- Conversion of naphtha (raw material) to LNG- Conversion of heating furnace fuel and auxiliary boiler
fuel from heavy oil to LNG

Nissan Chemical Corporation2022

2027

2050(Target)(Target)- 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◎ Refer to P68-72 for information disclosure in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

47

Carbon Neutrality

48

Integrated Report 2023

- Introduction of renewableenergy- Introduction of carbon
negative technology

Value Creation & Growth Strategies

In FY2022, we started the 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. We have set “Actualizing a sustainable future for our planet (To Tomorrow)” and “Actualizing sustainable
comfort for all (Be Happy)” as areas of contribution.