2023-25

Mid-term
ManagementPlan
NIHON KAGAKU SANGYO CO.,LTD.
October.2023©NIHON KAGAKU SANGYO CO.,LTD. All rights reserved.

The Positioning of our Mid-term Management Plan

2030
<Defining Our Vision>

We devise our Mid-termManagement Planby backcastingfrom Our Vision

2025<2025 Mid-termManagement Plan>

Paving the Path to theFuture by Exploring thePotential of Metals

We define Our Vision
as the future state
we seek to achievein the long term

Critical pathway
to attaining Our Visionby 2030

2023

Steadfast implementationof detailed management plan

©NIHON KAGAKU SANGYO CO.,LTD. All rights reserved.

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Our Vision

Paving the Path to the Future
by Exploring the Potential of Metals.
Our Message

By honing our unique metal technologies and creating new value, we will—inpartnership with various stakeholders—tackle the challenges in the path tosustainable society.
The Intent
behind OurMessage

 Become an indispensable member of the society Transformation into a strong business Corporate culture receptive to change

Chemicals Division©NIHON KAGAKU SANGYO CO.,LTD. All rights reserved.

Building Materials Division-3-Overview of the fundamental policy
Strengthening
our business foundation
 Innovation of high added value
business/products
 Enhancing our marketing to better identify
and cater to customer needs
 Evolving our production system

Establishingcompetitive advantage
Tackling social issues
 Contributing to a recycling society

Expanding our growth areas
 Innovation
 Strategic partnerships

 Contributing to decarbonization

Chemicals Business©NIHON KAGAKU SANGYO CO.,LTD. All rights reserved.

 Overseas expansion

Building Materials Business-4-Chemicals Business: Vision

Our vision
We will contribute to industries anda sustainable society by becoming
a one-of-a-kind chemicals manufacturer offeringhigh added value in the market.

Our unique strengths
 Track record of supplying many different
metal-based chemicals for more than 80 years.
 Outstanding responsiveness backed by historyof developing and supplying chemicals that meet
the wide array of needs of many different industries.
 R&D capability to produce products that not only
respond immediately to technological innovations,but also meet the demands of the society
and contribute to achieving a sustainable society.

©NIHON KAGAKU SANGYO CO.,LTD. All rights reserved.

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Chemicals Business: Recognizing our Business Environment
Environmental
Qualitativechanges toour businessenvironment• Climate change• Tighter environmental regulation• Increasing environmental demand frombusiness partners• Increasing demands for disclosure

Geopolitical• Tariffs & trade restrictions• Depletion/oligopolyof resources• Transition to renewables

Increased environmental
awareness
Globaltrend

Businessareas thatleveragethe strengthsof Chemicals
Business• Acceleration of decarbonization due tothe Paris Agreement• Expansion of circular economy

Products thatsupport manydifferent industries

Existing Chemicals
Business©NIHON KAGAKU SANGYO CO.,LTD. All rights reserved.

• Soaring energy price• Change in our customers’competitiveness• Cheap overseas import• Emergence of alternatives /commoditization

Increased demand forelectronic components• Increasing demand for electronics• Market growth due to innovations inelectronic components and functional
materials, as well as their expanding
application

Enabling devices tobecome smarter, more
efficient, and smaller

BatteryBusinessSocialEconomic• Labor shortage• Inflation

Shift towards EV• Sustainable growth of battery market due toelectrification of automobiles• Legislation mandating use rate of recycledmaterials• Increasing demand for highperformance/capacity batteries

Developing and producing battery
materials that make life easier andsafer

Metal Recycling
Business

Environment-friendly
recycling of metals, readyfor circular economy

New Materials
Business-6-

Chemicals Business: Strategy
Our vision for 2030
2025

[A one-of-a-kind chemicals business]
 Evolving/merging proprietary
technologies

 Expanding the rangeof customized productsthat truly meet customer needs

 Transitioning to highprofitability business.

[Cutting edge materials business]
 Evolving our production facilities
 Developing new materials
through strategic research Promoting open innovation
Strengthening
our businessfoundation

Tacklingsocial issues

Expanding ourgrowth areas

 Developing technologies that
promote lower carbon
emissions as well as recyclingof waste into raw materials

 Innovating high added value
products[Advanced metal recyclingbusiness]
 Contributing to circular
economy Contributing todecarbonization

 Strengthening alliance topromote recycling within supplychain.
©NIHON KAGAKU SANGYO CO.,LTD. All rights reserved.

-7-Chemicals Business: Value Creation Model
Expanding our growth areas

OutputStrengths

Outcomes
Financial capital

Customers/
suppliers

Academia

Surfacetreatment
technology

Cocreation
Startups

Processdevelopment
technology

Batterymaterials
technology
Business
partners

Greatervariety,smaller
volumeChemicalraw materials/ catalytic
technology

Evolving/
merging
proprietary
technologies

The one and only
chemicals
manufacturer
Capability tomanufacture
strategic
products

Evolving ourproduction
systemMarketingprowess

Planning/
development
Qualitycontrol
StablesupplyAbility
to propose
solutions• A one-of-a-kindchemicals
business Highly profitable portfolio
Intellectual capital Technology/R&D to respond tovarious needs
 Proposing solutions that are alignedwith customer needs.
Manufacturing capital• Cutting edge
materials business• Advanced metalrecycling
business

Automation
Labor saving
Leveraging
IT Building the foundation of
our production
 Significantly increasing ourproductivity
Social capital Creating value through open innovation
 Ensuring mutual prosperity acrossour entire supply chain
Natural capital Contributing to decarbonization

Strengthening our business foundation©NIHON KAGAKU SANGYO CO.,LTD. All rights reserved.

-8-Chemicals Business: Metal Recycling BusinessCollection

Refinement

Enhancingdecarbonization

 Strengthening the supply chain
for collecting the waste to berecycled into raw materials

 Developing technologies
to reduce the carbon footprintof our production

Tackling social
issues[Contributing tocircular economy]• Recycling of waste
into raw materials

 Expanding the variety
of metals collected Reducing our carbon footprint
through recycling of waste Refining processes that caterto many different metals• Enhancing thevalue of recycledmetals

 High-purity refining

Production

 Reducing the carbon
footprint of our strategic
products

 Developing products derived
from recycled materials[Contributing todecarbonization]
Vertically integrated recycling modelLong track record of supplying recycled/commercialized waste to the industries
Collection frommany different
collaborators

Separation/refining
Enhancedpurification

Recycling©NIHON KAGAKU SANGYO CO.,LTD. All rights reserved.

Analysis/
Evaluation

Reusing many different
metals acrossthe product portfolio• Reducing our own
GHG emission

Enhancing our corporate value

Increasing the recyclingof metals• Decarbonizing ourentire supply chainCommercialization-9-Building Materials Business: Vision
Our vision
We will play our part in achieving a sustainable
society, by further developing our unique metal
processing technology and offering new value
through products for housebuilding and industrialuse.

Our unique strengths
 Long track record of supplying housebuildingrelated products—which achieve fireproofing,ventilation, and waterproofing—by utilizing ourunique metal forming technologies.
 Product development capability which enables us
to contribute to the sustainability of the society,by developing—in response to the needs of ourcustomers, including housebuilders—productsthat facilitate a safer and more comfortable life.

©NIHON KAGAKU SANGYO CO.,LTD. All rights reserved.

-10-Building Materials Business: Strategy
Our vision for 2030
2025

[Supplying products that are
indispensable for safe and secure homes]

Expanding the existingproduct/OEM businessDevelopment of new products[Offering a product portfolio that improves
the durability and comfort of houses]• Non-fireproof products• Disaster response productsHousebuildingBuilding distribution channels
Nonhousebuilding●Developing products formid- to high-rise woodenbuildingsStrengthening
our businessfoundation
Industrial
metalprocessing
Tacklingsocial issues

Expanding ourgrowth areas

Enhancing heatexchanger products[Expanding businessin new areas][Building smart
factories that give us
a competitive edge]

Introducing automation
Promoting digitaltransformation©NIHON KAGAKU SANGYO CO.,LTD. All rights reserved.

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Strengthening the Foundation of Our Management
Category

Key
Challenges

Initiatives

Pursuing growth to prepare fordecarbonization of the society

EResponseto climatechangePromotingbusinesses
that shape
our future（Environment）

Supplying products andservices which meetcustomer expectation for
reduced carbon emission

Promoting management for decarbonization

Technologicaldevelopment

Reducing carbon
footprint throughbusiness activities

Development ofproduction
technology &new materials

Introducing energysaving facilities

S(Society)

Nurturing
our talent
Growth ofworkforce andcompany

Enhancing
our humancapital••

Supporting worklife balance
Implementing
flexible working©NIHON KAGAKU SANGYO CO.,LTD. All rights reserved.

Building
a Workplace we
can be proud of

Promoting DEI

Engagement toincrease
motivation

A diverse andthriving
workforce•••

Fukushima Plant No. 1(Hirono Town, Futaba
District)

Training to support
career development
Acquiring specialist
knowledge
Allocation of workforce

Acquiring
diversetalent

HR strategy toachieve themanagement
strategy

Workforce that
achieves themanagement
strategy

Mid-term Management Plan

HR actions to enhance corporate
value over mid-to-long term

Using renewableenergyE.g. Introduction of solar
panels-12-Strengthening the Foundation of Our Management
Key
Challenges

Enhanced
corporate
value(Governance)

Government
Agencies

liersppSub ts
Jo icanplGAp

Communicating
what makes Nikkasan
uniqueInitiatives to develop internal control framework
Establishingand operating
an appropriate
corporate
governanceframework

Enhancing PR activities
through website etc.
Expansion of contents(Financial & non-financialinformation)

Local
Communities

emia

Industry
Bodiesad

Proactive
disclosurersdeol rse h toar es
S h In v

Promoting stakeholder
engagement

Customers

Initiatives

Ac

Category

Enhancing
disclosure &promoting
dialogue

Enhancing the effectiveness of board meetings
Responding based on
evaluation of effectiveness

Reduced risk

Validity ofbusinessControl
over IT

Improvedbusiness
processes

Reliability
ofaccounting

Compliance

Increasing theeffectiveness ofboard meetings
Accountability tothe stakeholders

Leveraging IT to enhance the control functions
Enhancing
our IT
infrastructure

Enhancing disclosure byincreasing disclosure inEnglish

Increased
productivity• Revamping thecore systems• Introducing RPA©NIHON KAGAKU SANGYO CO.,LTD. All rights reserved.

Support toincrease sales• Enhancing business opportunity
management tools• Utilizing marketing automation• Enhancing business intelligence
analysisHighlyeffective
decisionmaking
Decision-making
capability

Highlyeffective
oversight

Capability tooversee execution

Enhancing information security
Enhancing
information
security-13-Paving the Path to the Future by Exploring the Potential of Metals©NIHON KAGAKU SANGYO CO.,LTD. All rights reserved.

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None of the information in this presentation should be construed as an enticement
to purchase or sell our shares. This presentation merely reflects the views held by
us as at the time of its preparation; we do not guarantee the accuracy of any
information contained in this presentation, and we reserve the right to alter any
such information without notice in the future. Please kindly note that neither we,
nor any third party who provided any of the information contained in thispresentation, will in any way be liable for any loss whatsoever you may suffer by
acting on any information contained in this presentation.

©NIHON KAGAKU SANGYO CO.,LTD. All rights reserved.

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