1. Introduction to Nitto Denko / Hydranautics & Desalination Market
Ms. Karin Spink
Vice President Business Operations and Administration
At Hydranautics we apply state-of-the-art technology to manufacture the best membrane products in the industry! We have made needed solutions the driving force behind our technological innovations.
We have the most extensive product line in the industry, targeted for a variety of applications and markets.
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We manufacture membranes that desalinate seawater for potable and industrial applications; We are the leaders in the industrial high purity market, where our CPA membrane, the bench mark performer in the industry, produces high purity water for boiler feed water and semiconductor applications. Our RO and NF membranes are installed in more municipal plants worldwide than any other competitor. Hydranautics’ installed products make more than 1 Billion Gallons of clean water each day.

2. Who WE ARE…

3. Nitto Denko Group Profile
Established: October 25, 1918
Sales: ,639 million yen or BUSD
Employees: ,198
Products: ,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.
(As of March 31, 2012)

4. Nitto Denko Group & Global
108 Group Companies(*), active in 27 Countries
（Japan: 21, Ex-Japan: 87）　
Sweden
Netherlands
Germany UK
Poland
Ohio
Czech
Tianjin
Dalian
Kentucky
New Jersey
France
Fremont, California
Hungary
KOREA
Shanghai
Virginia
Belgium
Missouri
Suzhou
Japan
Alabama
Italy
Amoy
Taiwan
Florida
Spain
Shenzhen
Oceanside, California
Hong Kong
Thailand
Mexico
Europe
13 companies
India
Philippines
Malaysia
Vietnam
Japan 21
East Asia 33
South Asia 17
Americas
24 companies
Singapore
Indonesia
Brazil
Australia
　　Sales/Production Companies
　　Sales Companies
　　Production Companies
　　Other Companies: (Japan: 5, Ex-Japan: 14)
(*) As of April. 1, (Companies in operation only)

5. Nitto Denko Group Products
Nitto Denko products support our life in various fields
Lightweight vibration-damping material
Body Panel-reinforcing & Vibration-damping Material
Surface Protection Film
Optical Film for LCD
Thin-film Metal
Circuit Board
For HDD
Porous
Filtration
Membrane
Electronics &
Optical
Components
Thermal
Release
Sheet
Transparent Conductive Film
Electronic
components
Automotives
LCD, OLED
HDD
Housing &
Construction
Environment
Healthcare
Reverse Osmosis Membrane Element for Seawater Desalination
Reverse Osmosis Membrane Element for Wastewater Recycle
Ultrafiltration Membrane Element for Water Treatment
Transdermal Therapeutic Patches
Otane Ninjin
Surgical Tapes & Dressings
Waterproofing
&
Airtight Tape
for Housing
Flooring
Protection
Tape
Waterproofing
& Airtight Tape
for
irregular Surfaces

6. Nitto Denko Global Membrane Division
Shiga, Japan
Founded: 1986
Shanghai, China
Founded: 2001
Oceanside, USA
Founded: 1963

7. ~350 Employees in Oceanside, CA
Founded in 1963
Reverse Osmosis 1970
Nitto Denko 1987
Production 172,000 ft2 (16,000 m2)
Facility 14 acres
~350 Employees in Oceanside, CA
Hydranautics was founded in 1963 as a systems company and entered into membrane technology in the early 1970’s. Today Hydranautics is one of the most respected and experienced firms in the membrane separations industry.
In 1987, Hydranautics was purchased by Nitto Denko Corporation. Nitto was looking to venture into the worldwide membrane market and saw Hydranautics as a company strategically positioned to be the leader in this market.
Hydranautics was located in San Diego in 4 separate buildings totaling 40,000 ft2. Today, Hydranautics is located in the City of Oceanside, CA in a 160,000 ft2(1600 m2) facility residing on 14 acres, all owned by Hydranautics.
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8. WHAT IS OUR BUSINESS…

9. Global Business, 70% Outside of USA
Algeria
Hydranautics is a worldwide organization with 18 field sales offices spanning the globe. Using this elaborate network of offices, combined with two separate manufacturing facilities, Hydranautics is able to provide 24-hour customer support as well as ensure prompt deliveries.
UAE
3 Manufacturing facilities ensure prompt deliveries.

10. As the Technology Leader… we focus on Research & Development
35% of our Sales are from new or recently upgraded products
At Hydranautics, as part of the Nitto Group, the primary focus is Technology, and we achieve that by focusing and investing in research and development. Hydranautics is the only company in the industry having two R&D centers, one in the U.S. and one in Japan, who work closely together as one team to develop new membrane polymer technologies, which in turn will improve existing products and develop new products.
To live our commitment, Hydranautics established a Corporate Technology Council, comprised of Industry leaders from our Application technology, R&D, and manufacturing, chartered with ensuring Hydranautics maintains its position as the technology leader, improving existing products and looking at future products.
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.

11. Our Core technology…

12. RO Membrane Separation Mechanism
Pressure
FEED
FLOW
H2O Mg Cl Fe ++
HCO3 Ca
SO4 Na +
Concentrated
Salts
H2O
Permeate
Membrane

13. Core Technology: Reverse Osmosis & Nanofiltration Membrane
RO membrane element
Magnified Cross Section Image of RO membrane
Required Characteristic of RO membrane
・High NaCl concentration
・Removal of specific material (Boron)
High Rejection
High Permeate Flow
・High pressure operation by high osmosis pressure
・Operating cost saving

14. Growing UF, MF and Gas Separations
Virus & Bacteria Removal
Colloidal Particle Removal
Ultra Pure water
Protein Recovery
0.8 mm

15. Automation & Manufacturing Excellence

16. Where is our market…

17. Global Water Supply versus Population
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. 8%
13%
36%
15% 8%
59%
11%
13%
Over one billion people use
unsafe drinking water with
3 – 4 million people dying
each year from waterborne
diseases.
26% 6% 4% 1%
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.
Source: UN Educational, Scientific and Cultural Organization / International Health Programs
& Goldman Sachs Global Investment Research

18. Desalination Growth: Total Installed Capacity, 1980 – 2010 (cumulative)
Hydranautics/Nitto Market Share ~30% Worldwide
1,800,000
8x40”
Spiral Elements
Typical Life:
3-6 years

19. Membrane Use by Market
Municipal & Industrial Markets
2010

20. Membranes Used in All Aspects of Society
Chemicals, Pharmaceuticals, food processing
Medical-use aseptic water
Agricultural water
Wastewater treatment for building
RO / UF
RO / UF / MF
RO / UF / MF
UF / MF
Drinking water
Water purification
VLSI・LCD Ultrapure water cleaning system
浄水器
MF/RO
Sewage treatment
Tap water filtration
MF + RO + UF
MBR＋RO
Advanced sewage recycling
Power Plant
UF / MF
MF +RO
UF＋RO
Demineralization for boiler feed
Seawater Desalination plant
Sea/Lake

21. Membrane Treatment Plants in San Diego Co.
HYDRANAUTICS
MISSION BASIN BWRO
CARLSBAD WWRO
*CARLSBAD SWRO
PALOMAR ENERGY WWRO
STONE BREWERY MBR/RO
ELECTRONICS CO WWRO
NORTH CITY WWRO
4 mgd Sweetwater, 0.2 mgd Electronics, 1 mgd Stone, 4 mgd Missn Basin,
FUTURE
SEAWATER
WASTEWATER
BRACKISH WATER
SWEETWATER BWRO
Courtesy Google Maps 2012

22. Solutions You Need. Technologies You Trust.
Thank You
Solutions You Need. Technologies You Trust.