Introduction to Nitto Denko / Hydranautics & Desalination Market

Ms. Karin SpinkVice President Business Operations and Administration

WHO WE ARE…

Established: October 25, 1918

Sales: 607,639 million yen or7.5BUSDEmployees: 32,198 Products: 6,039

Industrial materials based on the high-polymer synthesis & adhesive processing technologies for use in a variety of applications including leading-edge electronic devices and environment –related products.

Nitto Denko Group Profile

(As

of

Ma

rch

31

, 2

01

2)

－ 4 －

Nitto Denko Group & Global

Sweden

Missouri

Oceanside, California

Fremont, California

Poland

France

Germany

Belgium

ItalySpain Florida

Mexico

Japan

ShenzhenTaiwan

Philippines

Singapore

Australia

Shanghai

AmoyHong KongThailand

Malaysia

KOREA

Vietnam

Suzhou

Tianjin

Japan 21East Asia 33 South Asia 17

Japan 21East Asia 33 South Asia 17Indonesia

Europe13 companies

Europe13 companies Americas

24 companies

Americas24 companies

Brazil

Czech

Netherlands

Hungary

Alabama

Virginia

Kentucky

Ohio

Dalian

UK

India

New Jersey

　　 Sales/Production Companies　　 Sales Companies　　 Production Companies　　 Other Companies: (Japan: 5, Ex-Japan: 14)

　　 Sales/Production Companies　　 Sales Companies　　 Production Companies　　 Other Companies: (Japan: 5, Ex-Japan: 14)

108 Group Companies(*), active in 27 Countries（ Japan: 21, Ex-Japan: 87 ）　

(*) As of April. 1, 2011.(Companies in operation only)

LCD, OLEDHDD

AutomotivesAutomotives

Housing & Construction

Electroniccomponents

Environment

Body Panel-reinforcing &

Vibration-damping Material

Optical Film for

LCD

Surface Protection

Film

Transparent Conductive

Film

Reverse Osmosis

Membrane Element for Seawater

Desalination

Thin-film Metal Circuit Board

For HDDPorous

Filtration Membrane

Transdermal Therapeutic

Patches

Healthcare

Waterproofing &

Airtight Tape for Housing

Flooring Protection

Tape

Waterproofing & Airtight Tape

for irregular Surfaces

Nitto Denko products support our life in various fields

Nitto Denko Group Products Lightweight vibration-damping material

Electronics & Optical

Components

Reverse Osmosis

Membrane Element for Wastewater

Recycle

Ultrafiltration Membrane Element for

Water Treatment

Surgical Tapes &

Dressings

Otane Ninjin

Thermal Release Sheet

Nitto Denko Global Membrane Division

Oceanside, USA

Founded: 1963

Shanghai, China

Founded: 2001

Shiga, Japan

Founded: 1986

• Founded in 1963• Reverse Osmosis 1970• Nitto Denko 1987• Production 172,000 ft2

(16,000 m2)• Facility 14 acres• ~350 Employees in

Oceanside, CA

2/ 15

WHAT IS OUR BUSINESS…

Global Business, 70% Outside of USA

3 Manufacturing facilities ensure prompt deliveries.

UAE

Algeria

As the Technology Leader…we focus on Research & Development

3 R&D Centers U.S., Japan and Singapore produce innovative technologies for high performance membrane products. Nitto Denko/Hydranautics invests 3.5% of revenue on Research and Development.

35% of our Sales are from new or recently upgraded products

OUR CORE TECHNOLOGY…

RO Membrane Separation Mechanism

ConcentratedSalts

FEED FLOW

H2OH2O

H2O

H2O Mg

Cl

Fe++

HCO3 Ca

SO4Na+

++

++

Membrane

Pressure

H2OH2O

H2O

H2O H2OH2O

Permeate

12

High Rejection

・ High NaCl concentration

・ Removal of specific material (Boron)

・ High pressure operation by high osmosis pressure

・ Operating cost saving

Required Characteristic of RO membrane

High Permeate

Flow

RO membrane elementRO membrane element

Magnified Cross Section Image of RO

membrane

Magnified Cross Section Image of RO

membrane

Core Technology: Reverse Osmosis & Nanofiltration Membrane

Growing UF, MF and Gas Separations

Virus & Bacteria Removal Colloidal Particle RemovalUltra Pure waterProtein Recovery

0.8 mm

Automation & Manufacturing Excellence

WHERE IS OUR MARKET…

Global Water Supply versus Population

15% 8%

26% 6%

11% 13%

8% 13%

36% 59%

4% 1%

• North America has 15% of the global water supply, but only has 8% of the population. In contrast, China only has 7% of the renewable water supply, but 21% of the population.

• The number of people living in water scarce conditions globally is expected to double in 20 years, and those in water stressed geographies should increase six times.

• Over one billion people use unsafe drinking water with 3 – 4 million people dying each year from waterborne diseases.

Source: UN Educational, Scientific and Cultural Organization / International Health Programs& Goldman Sachs Global Investment Research

Desalination Growth: Total Installed Capacity, 1980 – 2010 (cumulative)

1,800,000 8x40”Spiral Elements

Typical Life:3-6 years

Hydranautics/Nitto Market Share ~30% Worldwide

Membrane Use by Market

2010

Municipal & Industrial Markets

Chemicals,Pharmaceuticals,food processing

Chemicals,Pharmaceuticals,food processing

Drinking waterDrinking water

Sewage treatmentSewage treatment

Water purificationWater purification

Advanced sewage recyclingAdvanced sewage recycling

浄水器浄水器

Tap water filtrationTap water filtration

Power PlantPower Plant

Demineralization for boiler feed

Demineralization for boiler feed

Wastewater treatment for

building

Wastewater treatment for

building

Agricultural water

Agricultural water

Sea/LakeSea/Lake

Seawater Desalination plant

Seawater Desalination plant

MF +RO UF ＋ RO

MF/RO

MBR ＋RO

RO / UF / MFRO / UF

UF / MF

MF + RO + UF

RO / UF / MFUF / MF

VLSI ・ LCD Ultrapure water cleaning system

VLSI ・ LCD Ultrapure water cleaning system

Membranes Used in All Aspects of Society

Medical-use aseptic waterMedical-use

aseptic water

Membrane Treatment Plants in San Diego Co.

Courtesy Google Maps 2012SWEETWATER BWRO

NORTH CITY WWRO

*CARLSBAD SWRO

MISSION BASIN BWRO

STONE BREWERY MBR/RO

CARLSBAD WWRO

PALOMAR ENERGY WWRO

ELECTRONICS CO WWRO

HYDRANAUTICS

SEAWATER

WASTEWATER

BRACKISH WATER

FUTURE

Solutions You Need. Technologies You Trust.

Thank You