Nissan Chemical, ‐where unique & solution meet
Long-term Business Plan ”Progress2030” Mid-term Business Plan “Vista2021”
May 12, 2016
Translation of presentation materials for the investor meeting held in Tokyo on May 12, 2016
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Contents
2
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1. “Vista2015 StageⅡ” :Review
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19.6
22.0
26.0
0
10
20
30
2013 2014 2015
Basic strategies of StageⅡ
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Financial results(vs. Plan)
5
Net Sales OP
19.6
22.0
26.0
22.2
25.3
28.6 156.0
170.0
180.0
163.7 171.2
176.9
0
5
10
15
20
25
30
35
40
0
50
100
150
200
2013 2014 2015
OP(Plan) OP(Actual) Sales(Plan) Sales(Actual)
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4.9 4.5
11.3 12.0
7.6 10.8
3.5
1.4
-1.3 -0.1
-5
0
5
10
15
20
25
30
Plan Actual
Chemicals Performance Agro Pharma Others6
26.0 28.6
Former segmentation basis
Financial results(vs. Plan)
Others: Trading, Others, Adjustment
Performance Mat. +0.7
Display materials: Sales expansion in smartphone use
Agrochemicals +3.2
Fluralaner, ALTAIR and ROUNDUP: Steady growth
Pharma -2.1
LIVALO: Decreased due to generics gaining market share
Others +1.2
Chemicals -0.4
High purity sulfuric acid and TEPIC for electronic materials: Decreased
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Financial Indicators(vs. Plan)
7
Plan Actual
OP margin 14.4% 16.2%
ROE 13.4% 14.6%
R&D expenses / Sales ratio 9.6% 8.9%
Dividend payout ratio Over 30% 30.7%
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Creating new Businesses & new products
(FCeM® preparation kit) (Materials Research Lab)
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Pursuit of business structure reforms
Kanazawa City Toyama City
Ishikawa
Natural Gas Pipeline
NCI Toyama Plant
Sea of Japan
Niigata
Toyama
Naoetsu LNG
Terminal of INPEX
Itoigawa City
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0
100
200
300
400
0
500
1000
1500
2000
2013 2014 2015
10
Towards the future growth
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New business plans
We strive to create better future for human and environment by helping to solve social issues
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Business model
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2. “Progress2030” : Outline
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Long-term perspective
Diversity
Advanced
medical care
Longevity
/Aging
Food
shortages
Speeding up
data communication
Energy
problems
Global
environmental protection
Medical
inflation
Business environment
2030 vision
14
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Business domains
Fine Organic
Synthesis
Functional Polymer Design Ultrafine
Particle Control
Biological Evaluation
Optical Control
Core Technologies
Life Sciences Information &
Communication
Environment & Energy
Chemicals & Affiliates
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Basic strategy
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Information & Communication
Establishing
optical control technologies
(Image of optical interconnect)
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Life Sciences
Creating biomedical materials
(Dialysis machine)
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Environment & Energy
Establishing a device
evaluation technology
(Lithium-ion battery)
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Chemicals & Affiliates
Introducing
high-performance compounds
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Business scale
Fine Organic
Synthesis
Functional Polymer Design Ultrafine
Particle Control
Biological Evaluation
Optical Control
Core Technologies
Life Sciences Information &
Communication
Environment & Energy
Chemicals & Affiliates
Sensor materials Optical functional
materials Biomedical materials
Display materials Semiconductor
materials
Inorganic materials
Veterinary pharmaceuticals
Pharmaceuticals
Agrochemicals
Battery materials Energy harvesting
materials Thermal control
materials
High-performance compound
Affiliates Basic chemicals
Fine chemicals
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Business scale
Fine Organic
Synthesis
Functional Polymer Design Ultrafine
Particle Control
Biological Evaluation
Optical Control
Core Technologies
Life Sciences Information &
Communication
Environment & Energy
Chemicals & Affiliates
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3. “Vista2021” : Outline
StageⅠ(2016~2018) StageⅡ(2019~2021)
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Ideal situation of 2021
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34.3 35.4 38.0 40.5
51.8 55.3 68.0
82.9
47.5 52.1
58.6
67.0
8.7 7.4
8.1
8.3
34.6 37.3
44.3
51.3
0
50
100
150
200
250
300
2015 2016 2018 2021
Chemicals Performance Agro Pharma Others
176.9
217.0
250.0
Pharma FY18 vs. FY15 -0.6 FY21 vs. FY15 -0.4
Agrochemicals FY18 vs. FY15 +11.1 FY21 vs. FY15 +19.5
Performance Mat. FY18 vs. FY15 +16.2 FY21 vs. FY15 +31.1
Chemicals FY18 vs. FY15 +3.7 FY21 vs. FY15 +6.2
Naphtha(¥/KL): FY2015 42,800 FY2016 35,400 FY2017 onward 51,100 FX rate(¥/$):FY2015 1H 122 2H 118 FY2016 onward 115
187.5
Billion yen
Others FY18 vs. FY15 +9.7 FY21 vs. FY15 +16.7
Target: Net sales
Others: Trading, Others, Adjustment
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3.9 4.9 4.0 4.5
12.0 11.7 15.4 18.4
10.8 11.3
12.9
16.7
2.0 1.4
2.0
2.4
-0.1
0.4
0.7
-2.0
-5
0
5
10
15
20
25
30
35
40
45
2015 2016 2018 2021
Chemicals Performance Agro Pharma Others
28.6
35.0
40.0
Pharma FY18 vs. FY15 0 FY21 vs. FY15 +0.4
Agrochemicals FY18 vs. FY15 +2.1 FY21 vs. FY15 +5.9
Performance Mat. FY18 vs. FY15 +3.4 FY21 vs. FY15 +6.4
Chemicals FY18 vs. FY15 +0.1 FY21 vs. FY15 +0.6
29.7
Target: OP
Others FY18 vs. FY15 +0.8 FY21 vs. FY15 -1.9
Naphtha(¥/KL): FY2015 42,800 FY2016 35,400 FY2017 onward 51,100 FX rate(¥/$):FY2015 1H 122 2H 118 FY2016 onward 115
Others: Trading, Others, Adjustment
Billion yen
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20.4
24.3
14.9 20.8
18.9
22.3
5.8
11.8
5.7
7.2
8.1
10.1
0
10
20
30
40
50
13-15 16-18 13-15 16-18
Performance Mat. Life Sciences Others 27
165 184 194
174 172 169
74 72
85
0
100
200
300
400
500
2015 2016 2018Performance Mat. Life Sciences Corporate
413 428
448
Three year total Capex: FY13-15 Acceptance basis FY16-18 Production commencement basis
45.0
28.8
53.8
42.7
Person Billion yen
Resource allocation
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4. “StageⅠ(FY2016~2018)” : Outline
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StageⅠ 2016-2018
StageⅡ 2019-2021
2030
29
Basic strategies
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Sources of growth
30
Chemicals
(AdBlue® container) (LED)
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Performance Materials
ITO electrode
Microlens
Sources of growth
Wiring
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Agrochemicals
Sources of growth
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Pharmaceuticals
(Research instruments)
Sources of growth
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Initiatives for 2019 onwards
34
Information & Communication
(Automotive window) (Image of a photo shoot with smartphone)
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Life Sciences
(FCeM® series) (SphereMaxTM)
Initiatives for 2019 onwards
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Environment & Energy
(Solar panel)
Initiatives for 2019 onwards
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R&D
(Collaboration with Kyushu University)
Initiatives for 2019 onwards
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Financial indicators
38
FY2015 Actual
FY2018 Target
OP margin 16.2% 15% or higher
ROE 14.6% 14% or higher
R&D expenses / Sales ratio
8.9% 8% or higher
Dividend payout ratio 30.7% 40%
Total payout ratio 70.8% Maintaining
70%
Information &
Communication
Life Sciences
Environment &
Energy
Business domain Core technologies
Fine Organic Synthesis
Functional Polymer Design
Ultrafine Particle Control
Biological Evaluation
Optical Control
Supply agrochemicals
Provide veterinary pharmaceuticals
Develop pharmaceuticals
Create biomedical materials
Supply battery materials
Develop energy harvesting materials
Create thermal control materials
Supply display and semiconductor materials
Offer sensor materials
Develop optical interconnect materials
Promote Responsible Care activities
Respect individuality and create friendly working environment
Strengthen corporate governance and make proper disclosure
Food shortages
Energy demand rise
Reduce environmental load
Enhance well-being
Advanced medical care
ICT evolution
Global environmental protection
Diversity
Sensible business activity
Create new technologies and products that respond to visible/potential
social needs
Che
mic
als & A
ffiliates
39
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Forward Looking Statements
The forward looking statements in this material are based on information available at the time of preparation of the material. Although they reflect our current expectations, these statements are not guarantees of future performance, but include a number of risks and uncertainties. Actual results may largely differ from these statements due to various factors which may be beyond company control. No information in this material is provided as an offer to buy or sell the shares of the company. We urge users of the material to make investment decision based upon own judgment.