Vision 2030

Value Creation Story“Vision2030”

At Nihon Parkerizing, we will celebrate our centenary milestone in 2028. But it is only
a transit point into the future. Looking further ahead, we have set “Vision2030,” ourmanagement vision showing who we want to be and the direction we should take. We
will make our mark on the world by contributing to a sustainable society.
Background

Social issues

To achieve sustainable growth by responding to theincreasing number of social issues, such as increasingly severe natural disasters, the evolution of themarket, and technological changes symbolized by
the shift to EVs, we must take on new business challenges and help solve social issues.

Global warming
Environmental destruction
Health and welfare
Poverty

Changes in the market
and technologies
Next generation autos (“CASE”)
New materials
Alternative technologies
More stringent environmental
regulations

Consolidated net sales: ¥Cultivating existing
markets

20%

CAGR

3%

Ratio of overseas
sales

50%

Operating income tonet sales ratio

ROE

15%

2028

4th Medium-termManagement Plan
2022/4〜2025/3

5th Medium-Term
Management Plan
2025/4〜2028/3

Centenary
6th Medium-Term
Management Plan
2028/4〜2031/3

Review the business portfolio of the entire Nihon Parkerizing Group
Construction of new Central Research Laboratories (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 the global manufacturing system
Rebuild toll processing business system

Organizational reform for enhancing Group governance
Building IT infrastructure common throughout the Group/Promote digital transformation
Reform personnel system/promote diversity

Nihon Parkerizing Co., Ltd. Integrated Report 2023STRATEGY 02

Cultivating existing markets and developing
new businesses

Accelerate global rollout

We will also actively seek M&A and alliances to take on thechallenge of the application of surface modification technologies to a variety of materials.
Cultivating existingmarkets

Market10% +We are entering a new growth phase as we approach the centenary of the establishmentof Nihon Parkerizing.

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STRATEGY 01

200 billion“Vision2030” Roadmap

3rd Medium-Term
Management Plan
2019/4〜2022/3

We will celebrate our centenary in 2028. Looking further ahead, we will improve our 3G management (Global, Group,Governance) to spur a new growth phase.
We will actively engage in environmental, social, and governance (ESG) issues to ensure the sustainable development of society and improve our medium- to long-term corporate value.

Metal
Substrate For a wide variety ofapplications

Management targets

Development of newbusinesses

Fundamental strategy -- Sustainability-oriented management

Addedvalue

Development of newbusinesses

Non-metal
Fiber/glass/resin

We provide solutions that contribute to solving social issues
globally by leveraging the collective strength of the Group.

RegionKey pointsChina• Expanding chemical sales and toll processing
business• Developing demand from non-Japanesecustomers• Enhancing technical support system

Automobile & steel
For next-generation
autos (lighter vehicles)
Changes in slidingcomponents due tothe shift to EVs

New markets
Medical devices/electronic components/
aerospace/health care/home appliancesIndia• Expanding chemical sales and toll processing
business

NorthAmerica• Expanding processing business throughout the US• Developing processing technologies in compliancewith environmental regulations• Enhancing technical support system• Expanding sales of chemicals for heat treatment

Corrosion resistance, lubrication,wear resistance
Increased functionality, composite functions, controlling
coefficient of friction

Multi-functional
Conductivity/insulation,hydrophilicity/hydrophobicity, heat dispersion/insulation, antibacterial,bonding different
materials

Europe• Expanding processing business into Europe• Expanding chemical sales and toll processing
businessSoutheast• Expanding share of sales to auto parts
Asia
manufacturers• Enhancing technical support system

STRATEGY 03

STRATEGY 04

Enhancing Group governanceDiversifying human resources

We will enhance governance throughout the Group to providethe foundation for global business activities to improve ourmedium- to long-term corporate value.

We will promote Diversity Management as multiplicity in humanresources is indispensable for sustainable growth and creationof innovation.

PolicyKey points

PolicyKey points

Restructurebusiness portfolio

Focus management resources on enriching core businesses and investing in future
growthIncreasing
diversity

Improve capitalefficiency

Manage investment profitability with asharp sense of capital costs• Establish an environment in which diverse humanresources can exercise their talents to themaximum• Promote the career advancement of women

Improve risk
management
systemOrganizational changes to tighten risk
management throughout the GroupDeveloping• Plan development of global human resources
global• Develop human resources who can adapt to ahumanchanging society
resources

EnhancecomplianceFostering a fair and highly transparent
corporate culture

Improvingwork-lifebalance• Establish a flexible workplace environment• Promote digital transformation

Nihon Parkerizing Co., Ltd. Integrated Report 2023

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