NIPPON SHOKUBAI CO., LTD.

FY Ended March 2011, Large Meeting

9 May, 2011

Voluntary translation for readers’ convenience

2

We at Nippon Shokubai express our deepest

sympathy for all those affected by the Great

Eastern Japan Earthquake and fervently wish fro

the early recovery of the region affected.

Nippon Shokubai makes best effort for the recovery

with proving products under the stable production.

ＮＩＰＰＯＮ ＳＨＯＫＵＢＡＩ ＣＯ．，ＬＴＤ．

Progress of our long-term business plan

“TechnoAmenity 2015” and

our forecast for the fiscal year

ending March 2012

President

Masanori Ikeda

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Contents

1．Impact of the Great Eastern Japan Earthquake

2．New management

3．Long-term business plan “TechnoAmenity 2015”4．Situation of each business

SAP： Demand trend and business strategy

AA： Demand trend and business strategy

AA/SAP： Worldwide development, Our positioning

EO： Business strategy

New business： Electronic and Information (E&I) materials

New energy materials

5．Forecast for FY March 2012

6．Return policy SAP：Superabsorbent Polymers

AA： Acrylic Acid

AES: Acrylates

EO： Ethylene Oxide

EG： Ethylene Glycol

NAII： NA Industries, Inc.（USA）

NSI： PT.NIPPON SHOKUBAI INDONESIA （Indonesia）

Explanation of technical words

5

Nippon Nyukazai Plants located in Kashima and Kawasaki. Kashima Plant suffered damage, now partly recovered. Products of Kashima are shifted to Kawasaki Plant in response.

Nihon Joryu Kogyo Head office plant (Ichikawa) suffered damage. Now recovered.

Kawasaki: EO Operations slowed temporarily, but now back to normal.Maintaining high operating rate

Himeji: AA, SAP, E & I materials etc. Not affected by the earthquakeOverseas: AA, SAP etc. Not affected by the earthquake

FY3/2011: Minor impact on sales and profitsFY3/2012: Although slowdown in domestic demand is expected, a slight increase in sales

volume is forecast over the fiscal year

1. Impact of the Great Eastern Japan Earthquake

Human casualties None

Property damage Nippon Nyukazai and Nihon Joryu Kogyo both damaged. Limited impact.

Impact on production

Impact on business

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2. New management

Tadao Kondo Chairman

Masanori Ikeda President

Graduated from Tokyo University, received an MBA from Cornell University

2003: Member of the Board , 2006: Managing Director, 2009: Senior Managing Director,

2010: Executive Vice President

Led many overseas projects including NAII. Played an important role in our global expansion

Primarily engaged in corporate planning. Demonstrated abilities in implementing ERP (integrated enterprise system) and acquiring Nippon Nyukazai etc. Leveraged extensive experience in general business operations to contribute to the ongoing success of the company.

Continuing the present course. Aims to achieve not only the numerical targets of TechnoAmenity 2015 but also the substance.Seeks the full confidence of stakeholders through robust CSR.

Doctor of Engineering, Kyoto University Graduate School of Engineering2000: President of Nippoh Chemicals, 2003: Senior Managing Director,2004: Executive VicePresident, 2005: President A president with a research background. Demonstrated skills as a manager, developing new businesses in E & I materials and new energy etc. Responded appropriately to business changes, achieving record profits. Solidified the position of our SAP business as the world leader.

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Corporate Philosophy Management Philosophy

Providing affluence and comfort to people and society,

with our unique technology

Based upon a deep respect for humanity

Coexisting with society, and working in harmony

with the environment

Pursuing innovative technology

Operating on the global stage

FY3/2013 FY3/2016

Sales ¥330 billion ¥400 billion

Ordinary Income

¥22 billion ¥30 billion

ROA*) 6.3％ 7.5％

*) Ord.Income/Total Assets

Assumptions

① Exchange rate US$ = ¥90、EUR = ¥120

② Domestic naphtha price ¥50,000/KL

③ Reference Net GDP and Consumers’ price :

0% annual growth

A chemical company providing new values through innovative technologies

A chemical company providing new values through innovative technologies

VisionVision

Slogan： Challenge to the future, make dreams come true Slogan： Challenge to the future, make dreams come true

TechnoAmenity 2015

３．Long-termBusiness Plan

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TechnoAmenity 2015 Business Portfolio

Level to attain inFY2015

Vision/Target in

FY2025

Now

E&I Materials

New Energy

Current Business

Health, Medical

Make one of centerpiece of the profit generation

Fuel cell materials

Improve profitability

Medical materials

Functional food materials

Sales¥30 bil.

Sales¥5 bil.

Talent development

Clear and international group managementEnhancement of organization

Make an active organization climate

Activate its human resources and organization

Profitability improvement

committee

Business Portfolio

３．Long-termBusiness Plan

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Achieved record profits again in FY2010.Achieved record profits, and largely achieved FY2015 earnings targets

Rising market prices of AES and EGWell-timed expansion of EO, AA and SAP capacity to capture rising demand in emerging countries.

Revise the Long-Term Management Plan in FY2012Economic recession and uncertainty stemming from the earthquakeSoaring oil prices due to political unrest in Middle East and North Africa

TechnoAmenity2015 Progress

FY3/2011

FY2010 results

Sales 288.3 billion yen

Ordinary profit 30.9 billion yen

ROA* 9.7%

* Ordinary income / Total assets

FY3/2012 and beyond

3. Long-Term Business Plan

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October 2010 Himeji 60,000 t/year In operation June 2012 USA 60,000 t/year B&SAugust 2013 Indonesia 90,000 t/year Scheduled

October 2010 Himeji 60,000 t/year In operation June 2012 USA 60,000 t/year B&SAugust 2013 Indonesia 90,000 t/year Scheduled

7 to 8% annual 7 to 8% annual percentage rate percentage rate

growthgrowth

Make up for slowdown from declining births with expansion of adult segment

Developed markets

Rapid expansion in the growth phase with rising incomes

Emerging markets

SAP: Demand trends and strategies

Demand trendsDemand trends

Reliable response to customer needsResearch and production systems to meet various performance requirementsSeamless expansion of capacity to meet strong demand

Total cost reductionEfficient process developmentStreamlined material procurement and transportation Effective utilization of utilities through adjacent location of AA

Maintain the topMaintain the top--ranking share and ensure profitabilityranking share and ensure profitability

Global demand is growing at a slightly faster pace than initial forecast→ Earlier capacity expansion

Global demand 1.7 million tons (2010)

4. Status of individual businesses

B&S: Build & Scrap

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April 2010 Himeji 80,000 t/year In operationAugust 2013 Indonesia 80,000 t/year Scheduled

April 2010 Himeji 80,000 t/year In operationAugust 2013 Indonesia 80,000 t/year Scheduled

6% annual 6% annual percentage rate percentage rate

growthgrowth

7 to 8% growthDisposable diapers

For SAP

5 to 6% growthPaint and adhesives etc.

For AES etc.

AA: Demand trends and strategies

Demand trendsDemand trends

Maintain a high self-consumption rate → Maintain high AA operating rateHigh added value expansion with SAP and other derivativesCapacity expansion to meet growing demand for SAP and AES

Global expansionImplement optimum location production, low-cost distribution and timely supply to cover global customers

Total cost reductionContinuous improvement of processes, plant design, catalysts etc.

↓

Growth based on increased demandGrowth based on increased demand

Global demand 4 million tons (2010)

Low running cost (catalyst, feedstock, utility costs)Low plant cost (construction, repair costs)Low running cost (catalyst, feedstock, utility costs)Low plant cost (construction, repair costs)

4. Status of individual businesses

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AA/SAP: Global expansion - current

320460

60

40

60

603060 U.S. (Chattanooga)

U.S. (Houston)

Belgium (Antwerp)

China (Zhangjiagang)

Singapore (Jurong Island)

Indonesia (Cilegon)

Japan (Himeji)

AA facilities ( Kt/y)

SAP facilities (Kt/y)

Capital investment: Approx. US$100 millionSAP plant capacity: 60,000 t/year → 60,000 t/yearTotal cost reduction through B&SCommercial operation in June 2012

NSI (Indonesia), Build new AA and SAP production facilities

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Capital investment: Approx. US$300 millionAA plant capacity: Existing 60,000 t/year → 140,000 t/yearSAP plant capacity: 90,000 t/year (Previous plan 30,000 t/year)Commercial operation in August 2013

NAII Inc. (U.S.), SAP production facilities moved to Houston from Chattanooga

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B&S: Build & Scrap

4. Status of individual businesses

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AA/SAP：Global expansion - end 2013

140 90

Current End 2013

AA 620 700

SAP 470 560

４．Situation of each business

U.S. (Houston)

Belgium (Antwerp)

China (Zhangjiagang)

Singapore (Jurong Island)

Indonesia (Cilegon)

Japan (Himeji)

Production capacity (Kt/y)

320460

40

60

6030

60

SAP facilities (Kt/y)

AA facilities ( Kt/y)

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620

80

0

500

1,000

1,500

A B NipponShokubai

C D Others

470

90

0

100

200

300

400

500

600

NipponShokubai

A B C D Others

Kt/y

Estimated by Nippon Shokubai

AA Production Capacity

AA/SAP：Our positioning（End 2010）

560Kt/y （End 2013)

World wide total：Over 5 million ton

700Kt/y （End 2013)

Kt/y

SAP Production Capacity

World wide total：Over 1.7million ton

４．Situation of each business

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Non-EGNon-EG ratio: Nippon Shokubai is over 70% Domestic average (including us) around 50%

EO centralizationTo expand sales of EO to pipeline-supplied customersTo expand ethoxylation business

Expansion/develpoment of derivativesAlready acquired land for new business. Considering new facilities for derivatives

Improvement of production efficiencyIntegrated operation of the Chidori and Ukishima plants with the EO conduit

(completed 2008)

EO expansion Start of operation February 2010 254,000 t/year → 324,000 t/year

EO: Business strategy

Establish an earnings base that does not depend on the state of the market

Aim for flexible product configuration Aim for flexible product configuration as a top priority to improve plant utilizationas a top priority to improve plant utilization

４．Situation of each business

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New business: Electronic information materials and new energy materials

Various development of materials for flat-panel displaysSpherical fine particlesFunctional dyesPolymer for resistsAcrylic resin for optical materials

Li-ion battery materialsHigh priority initiative towards commercialization

Fuel cell materialsExpansion of zirconium sheet production capacity

3 million sheets/year capacity utilization by end of 2010

Electronic & information materials: Grow to a key source of revenue

New energy materials: A next generation core business

４．Situation of each business

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Revenues up, profits downSoaring oil prices and deteriorated spread due to political unrest in Middle East and North AfricaSlight growth in sales volume is expected as an effect of the earthquakeLosses from the disaster to Group companies are minimal

FY3/2011 FY3/2012Sales 288.3 320

Ordinary profit 30.9 25ROA* 9.7% 7.4%

* Ordinary Income / Total AssetsAssumptions

(1) Exchange rate: US$ = 86 yen, EUR = 113 yen(2) Domestic naphtha price: 47,500 yen/kl

5. FY3/2012 plan

Deterioration in profitability due to economic instability

US$ = 80 yen, EUR = 110 yen60,000 yen/kl

Results

(Unit: billion yen)

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FY3/2011 dividendNet Income 21.1 billion yen

22 yen/share

FY3/2012 dividend (forecast)Net Income 16.5 billion yen

20 yen/share

Taking overall account of business expansion and corporate strucTaking overall account of business expansion and corporate structural tural reinforcement and based on forecasts of the trend in consolidatereinforcement and based on forecasts of the trend in consolidated earnings, we d earnings, we

are aiming to improve levels in the medium term are aiming to improve levels in the medium term

* 50th anniversary of the Himeji Plant (2 yen) and 70th anniversary of NIPPON SHOKUBAI(2 yen)

%FY3/2005-3/20117-year average

FY3/2007-3/20115-year average

FY3/2009-3/20113-year average

Average payout ratio 25.0 29.7 36.5

Average total rate of return 41.8 49.4 44.4

6. Dividend policy

Yen/share Interim End of period TotalOrdinary dividend 9 9 18

Commemorative dividend* 1 1 + 2 4

Total 10 12 22

Yen/share Interim End of period Total

Ordinary dividend 10 10 20

Commemorative dividend - - -

Total 10 10 20

Increased investment in core business, with large internal reserves

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This presentation material (“Material”) is aiming to provide readers referential

information, not to persuade investment. Material contains forward-looking

statements and statements of this nature based on reasonable judgments in

accordance with information currently available. We do not commit nor

guarantee the contents of Material. Readers should be aware that actual results

and events might differ substantially from these projections.

IR Contacts :

NIPPON SHOKUBAI CO., LTD. Investor & Public Relations Dept.Hibiya-Dai Bldg. 1-2-2 Uchisaiwai-cho, Chiyoda-ku

Tokyo 100-0011 Japan

TEL： 03-3506-7477

FAX： 03-3506-7598

URL： http://www.shokubai.co.jp

Notes to Readers