May 28, 2021

Vision2030
Transforming a diverse rangeof surfaces with chemistry0We will contribute to building asustainable society by creating
new value for resources throughsurface modification of a varietyof materials.
As for tackling issues in society, including global
environmental problems, it is becoming increasinglyimperative. Furthermore, the social environment ischanging significantly. The Nihon Parkerizing Group will
endeavor to create new value for resources throughsurface modification of various materials in line withour corporate philosophy of conservation of the global
environment and creating a more prosperous society.
Contributing to creating a sustainable society bytransforming diverse surfaces with chemistry is ourcorporate vision.

Copyright 2021 Nihon Parkerizing Co., Ltd.

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Vision2030: Background to formulation
Social issues
 Global warming

Changes in the marketand technology
 Next generation autos(“CASE”)

 Environmental
destruction

 New materials

 Health and welfare Alternative technologies

 Poverty More stringent
environmental regulations

Developing new businesses and providing solutions for social issues
are indispensable for the creation of a sustainable society.

Improving corporate value throughsustainability-oriented management

Copyright 2021 Nihon Parkerizing Co., Ltd.

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Sustainability-oriented management
The Nihon Parkerizing Group, as surface modification specialists in three
critical businesses, including chemicals, process equipment, and toll
processing, aims to find solutions to social issues and pursue sustainablegrowth and development together with society.
Process
Equipment

ChemicalToll
Processing

Corporate philosophy
Effective use of limited resources

Creation of affluent and healthy society

Contribution to SDGs

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Nihon Parkerizing Group ESG initiatives
The Group will actively engage in environmental, social and governance (ESG)
issues to ensure the sustainable development of society and improve ourcorporate value.
Environment
 Development of technology
for a decarbonized society Development ofenvironment-friendly
products
 Green procurement
 Appropriate control ofchemical substances Promoting alternatives tohazardous substances

SocialGovernance Diversity
 Work-life balance Enhance group
governance Restructure businessportfolio Occupational safety andhealth Conflict minerals
 Harmonization with localcommunities

 Improve riskmanagement
 Enhance compliance Reducing emissions ofhazardous substances■Specific initiatives for tackling environmental issues through our business
The Nihon Parkerizing Group’s surface modification technology contributes to solving global
environmental issues such as conserving resources and energy and improving the efficiency of
their use by adding various functions to the surface of materials, such as corrosion resistance,
wear-resistance and lubricity.
Furthermore, as a leading company in surface modification, we pursue technology development toreduce the load on the environment. Chrome-free, phosphorous-free, and non-sludge generating
technologies, as we seek alternatives to hazardous substances to eliminate or reduce their use anddevelop zero-emission technologies, are an excellent example of our outcome.
Copyright 2021 Nihon Parkerizing Co., Ltd.

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Fundamental strategy
As we approach our centenary in 2028,
and beyond into the future,
we will further improve our 3G management(Global, Group & Governance)
as we seek to spur a new phase of growth.

2028
Establishment

100 yrs

3rd mid-term
management plan

4th mid-termmanagement plan

5th mid-term
management plan

6th mid-term
management plan

April 2019
toMarch 2022

April 2022
toMarch 2025

April 2025
toMarch 2028

April 2028
toMarch 2031

3G management

Sustainability-oriented management

Growth strategies tolead in global
competition

Cultivating existing
markets

Developing newbusinesses

Optimizing Groupmanagement

Accelerating global
rollout

Enhancing Group
governance

Governance reform

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Diversifying
human resources

5Cultivating existing markets and developing new businesses

Expanding the application of surface modification technology to avariety of materials
Cultivating existing markets

Material

MarketAddedvalue

Metal
For a wide variety of applications

Automotive & steel
For next generation autos (lightervehicles)
Changes in sliding components due
to shift to EVs
Corrosion resistance, lubrication,wear resistance
Increased functionality, composite
functions, controlling coefficient offriction

Developing new businesses＋＋＋

Non-metal
Fiber/glass/resin

New markets
Medical devices/electronic
components/aerospace
Health care/home appliancesMulti-functional
Conductivity/insulation,hydrophilicity/water repellence, heatdissipation/insulation,
antibacterial, bonding different materials

Actively seek M&A and alliances
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Accelerating global rollout
Leveraging the Group’s strengths to provide solutions to social
problems on a global scale.
ChinaEurope
 Expanding processing
business into Europe

North America

 Expanding chemical sales andprocessing business Developing demand from nonJapanese companies

 Enhancing technical support system

 Expanding processing businessthroughout the U.S.

 Developing processing technology
in compliance with environmental
regulations

 Enhancing technical support system
 Expanding sales of chemicals forheat treatment

Southeast AsiaIndia
 Expanding chemical sales andprocessing business

Copyright 2021 Nihon Parkerizing Co., Ltd.

 Expanding chemical sales andprocessing business Expanding share of sales toauto parts manufacturers

 Enhancing technical support
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Enhancing Group governance
We will enhance governance throughout the Group to provide thefoundation for global business activities as we aim to improve our
mid- to long-term corporate value.
PolicyKey points

Restructure businessportfolio

Focus management resources on enriching core businesses andinvesting in future growth

Improve capital efficiencyManage investment profitability with a sharp sense of capital
costs

Improve risk management
systemOrganizational changes to tighten risk management throughout
the GroupEnhance complianceFostering a fair and highly transparent corporate culture

Copyright 2021 Nihon Parkerizing Co., Ltd.

8Diversifying human resources
We will promote “Diversity Management” as multiplicity in human resources
is indispensable to creating sustainable growth and innovation.
PolicyKey points

Increasing diversity• Establish an environment in which diverse human resources
can exercise their talents to the maximum• Promote the career advancement of womenDeveloping global humanresources• Plan development of global human resources• Develop human resources who can adapt to a changing society

Improving work-lifebalance• Establish a flexible workplace environment• Promote digital transformation

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Management targets
Aiming to be a global leader in the field of surface modification,
we will develop new businesses and cultivate existing markets
on a worldwide scale.

Consolidated sales 200,000 million yen
New businessdevelopment

Cultivatingexisting markets

Overseas sales
ratio

Operating incometo net sales ratio

ROE20％CAGR 3％

50％15％

10％ +Consolidated sales
2,000（100 million yen）

2,000

400

1,500

1,000

998

1,025

1,091

1,096

1,148

1,292

1,190
999

3rd mid-term

management plan

020％ target

1,600500

2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3

Copyright 2021 Nihon Parkerizing Co., Ltd.

4thplan

5thplan

New business development

Cultivating existing markets

CAGR

6thplan

3％ target（compared to March 2020)

2031/310Vision2030 Roadmap
Transforming surfaces with chemistry
3rd Mid-term
management plan
April 2019 – March 2022

4th Mid-term
management plan
April 2022 – March 2025

5th Mid-term
management plan
April 2025 – March 2028

6th Mid-term
management plan
April 2028 – March 2031

Review the business portfolio of the entire Nihon Parkerizing Group
Construction of new CRL
Expand subjects of R&D/Enhance R&D related to SDGs
Enter and expand new markets and new fields
Accelerate global rollout
Promote M&A and strategic alliances
Rebuild global manufacturing system
Rebuild processing business system
Organizational reform to enhance Group governance
Building IT infrastructure common throughout the Group
Promote digital transformation (DX)
Reform personnel system/promote diversity

2028
Establishment

100 yrs

Entering a new growth phase as we are approaching thecentenary of the establishment of Nihon Parkerizing
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