Nitto Group Report 2018

Nitto Group Report 201812competition, in which rst-class players from across the globe exert their utmost efforts to reach the top, is similar to the Nitto Group’s corporate attitude of constantly striving for the leading position in various elds. It is our hope that this sponsorship will help to enhance our brand value.Furthermore, we will recruit and develop diverse human resources from across the globe who will go on to advance these initiatives, and we plan to assign them to optimal positions so that they can provide even more impetus to such endeavors. By forging ahead with the “Jitsugen-2020” plan and living up to the Nitto Way, which is the sum of our corporate values, we aim to fulll our corporate Mission of “contributing to customers’ value creation with innovative ideas” so that we can reach our goal of achieving sustainable growth of the Nitto Group.Resource Allocation: 400.0 Billion YenAs we announced in the previous year’s Mid-Term Management Plan, we will remain proactive in making strategic investments for M&As and environmental measures, in addition to capital expenditures, in our bid to support the aforementioned growth strategies.Placing Safety Before Everything ElseWe clearly state in our Corporate Philosophy that “we place safety before everything else” based on our rm conviction that we can offer quality products and services that satisfy our customers only when we assure the safety and good health of everyone involved. Occupational safety is essential in guaranteeing a stable supply of products, safety in our host communities, and peace of mind for our employees and their families. Nevertheless, I must admit that the Nitto Group still has issues to address in this regard. Under the powerful belief that we will be able to achieve zero accidents and injuries, we will take safety measures from the three perspectives of “safety of machinery,” “safety of people,” and “safety of the organization.”Safety of machineryWe will identify and assess risks to eradicate any possible causes of disasters that might be hidden on the shop oor.Safety of peopleWe will develop people who not only observe rules, but also choose to act safely even without those rules.Safety of the organizationSupervisors will visit the shop oor to determine whether “operators’ safety is assured and machinery can be operated safely,” while always remaining conscious of their responsibility to “protect their workplace, team, and subordinates.”and drug discovery, the oligonucleotide medicine business is developing into the core of the Life Science segment. Our strength in contract manufacturing lies in our one-stop support for development of oligonucleotide medicines, from contract manufacturing to pharmaceutical analysis and aseptic ll & nish services. For drug discovery, we are developing a liver cirrhosis drug jointly with Bristol-Myers Squibb (BMS) while also applying our technologies to cancer treatment, and both of these efforts are proceeding smoothly. We are doing our utmost to launch these drugs as soon as possible for the many patients who are ghting against those diseases.The Nitto Group has set its numerical targets for scal 2020, which are revenue of one trillion yen and operating income of 175.0 billion yen. We intend to achieve these targets by developing businesses in the aforementioned three strategic domains into protable ones, in addition to stabilizing our existing businesses.Reinforcement of Business FoundationsTo ensure that these growth strategies will make steady progress, we intend to further consolidate our business foundations by enhancing environmental and safety measures, advancing manufacturing, and improving product quality and brand value. To conserve the environment, we are focusing on reduction of CO2 emissions, which are causing environmental problems on a global scale, as well as toluene emissions. In scal 2017, we were able to halve our toluene emissions by taking advantage of our newly established environmental fund. We are also planning to use this fund to signicantly increase the water recycling ratio in order to combat the water crisis. In conjunction with such efforts, we will continue to expand measures to prevent environmental pollution by using products of the Nitto Group whenever feasible.Recent years have seen one case after another of non-compliance among Japanese companies, resulting in a serious loss of public condence in them. In response, we immediately conducted surveys on how product quality is managed at all of our production sites to see if there are any similar situations within the Nitto Group. Fortunately, we found no cases of legal violation, but we will nonetheless remain on guard and reinforce our auditing and other relevant systems so that we can always offer the best product quality possible to our valued customers.Since 2017, Nitto has been a title sponsor of the ATP Finals, the season-ending nale of the ATP World Tour for men’s professional tennis. We believe that the spirit of this

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