Nitto Group Report 2016

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Top Message11Nitto Group Report 2016Existing technologies tonew markets/new applicationsGreen(Environment)GNTANTClean(New energy)Fine(Life science)*GNT: Global Niche Top® ANT: Area Niche Top®WavelengthconversionmaterialsNeodymium magnet★NEW★NEWLEDencapsulatingmaterialsEnergy-savingfilm forwindowsOligonucleotidesynthesisMoleculartargetingDDSNew transdermalmedical patch(PassPort™ System)Consumer products(Consolidation of3 companies)Tape materialsfor diapersAircrafttapesNext generationvehicle relatedmaterialsAuto electronicsRelated materialsDrive the growth by developing new products/ business in the domain of Green, Clean and Fine★NEW will be launched in the future.In order to support this growth strategy, we will make 190 billion yen in capital investment and 160 billion yen in strategic investment for M&As and environmental measures, collectively 350 billion yen in three years. Simultaneously, we will continue to advance structural reform according to our Mu Gen Dai project, streamlining every operation and process from the viewpoints of mu (removing), gen (reducing) and dai (replacing). Furthermore, we will review our management and personnel systems and drastically strengthen our infrastructure and resources from a global perspective. Moreover, by properly observing the Corporate Governance Code, in effect in Japan since June 2015, we will engage in improvement of quality, leading to improvement of corporate value. With these approaches, we aim to be a corporation continuing to satisfy every stakeholder in future years.In scal 2016, the rst year of our mid-term management plan, Nitto-2018, we aim to achieve 770 billion yen in revenue and 90 billion yen in operating income.In our optronics business, growth in the smartphone market, which has led our business performance, shows signs of a slowdown. It is also expected changes in the business environment, such as the adoption of organic EL displays in place of liquid-crystal displays, will gain momentum. The Nitto Group has already begun to take measures to supply materials for organic EL displays, maintaining our high market share, along with that for our optical lms for liquid-crystal displays.Our automobile materials business, a unit of our industrial tape business, has developed into a wider transportation business by adding materials for other forms of transportation, such as aircraft, rolling stock and ships. We are developing not only our product and analysis technologies cultivated in automobile materials for other forms of transportation, but are also deploying our expertise gained in aircraft in automobiles.In our medical business, we are engaged in facility expansion and reinforcement in order to further the favorable contracted manufacturing of oligonucleotide synthesis. We also plan to advance to the next stage of critical trials of a drug for liver cirrhosis with molecular targeting DDS technology throughout the U.S. Recently, with the adoption of new international frameworks for reducing greenhouse gas emissions, every signatory country has been asked to draw up a reduction target and regularly review it. Considering it was necessary to incorporate new environmental goals, including a GHG emissions target, into our mid-term management plan as part of our business strategies, the Nitto Group has constructed new systems in order to swiftly put the will of top management into practice. As one of our approaches, we established the Green Committee to allow a precise grasp of the present status, as well as risks concerning the environment, and to review our environmental goals.Furthermore, we have developed our business in the Green, Clean and Fine domains. In particular, we have expanded our lineups of products reducing negative environmental impact in the Green and Clean domains, aiming to reduce the negative impact generated in our customers’ processing.Approaches for Fiscal 2016Review of Environmental Goals• Create and expand new business

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