Carlit Co., Ltd.TSE: 4275

Notice of “Space & Defense Solid Propellants Business Briefing”

· Issued by Carlit Co., Ltd.

Note: This document has been translated from the Japanese original for reference purposes only. In the event of

any discrepancy between this translated document and the Japanese original, the original shall prevail.



To whom it may concern:

December 16, 2025

Company name: Carlit Co., Ltd.

(https://www.carlithd.co.jp/)

Representative: Hirofumi Kaneko, Representative Director and President (Securities code: 4275; Prime Market of the Tokyo Stock Exchange)

Inquiries: Hajime Yamamoto, General Manager of Public Relations & IR Group Corporate Planning Dept.

(TEL: +81-3-6893-7060)

Notice of "Space & Defense Solid Propellants Business Briefing"

We are pleased to announce that we have held a "Space & Defense Solid Propellants Business Briefing" with the aim of providing our stakeholders with more detailed information on the priority businesses set forth in our business portfolio under the medium-term management plan "Challenge 2027."

  1. Background of the Business Briefing

    The Group has articulated its future vision as:"To contribute to a sustainable society by combining the power of "chemistry" and "technology" to support people's happy lives" To realize this vision, we have formulated a three-year medium-term management plan covering the period from fiscal 2025 to fiscal 2027, and have been implementing a variety of initiatives under this plan.

    Until now, we have provided information on our businesses and R&D activities primarily through earnings briefings. However, in order to share more detailed information with our stakeholders-such as the status of capital investments, R&D policies, and future directions-we decided to hold a dedicated business briefing.

  2. Overview of the Briefing

    • About Carlit and solid propellants

    • Progress of the ammonium perchlorate capacity expansion plan

    • Development status of space & defense solid propellants

      For further details, please refer to the presentation materials from the next page onward.

  3. Presenters

    • Yoji Yamaguchi, Executive Officer, in charge of Research & Development

    • Fumio Ogawa, Executive Officer, President (Head) of Research & Development

    • Hajime Yamamoto, General Manager, Public Relations & IR Group

  4. Video Distribution

A video recording of the briefing is scheduled to be made available at a later date on YouTube.

- END -



Space & Defense solid propellants Business Briefing
  • Agenda

  1. Carlit and Solid Propellants
  2. Progress Report on the Ammonium Perchlorate Production Expansion Plan
  3. Development Status of Solid Propellants for Space and Defense
  4. Q&A
    • Presenters

      • Yoji Yamaguchi, Executive Officer, in charge of Research & Development
      • Fumio Ogawa, Executive Officer, President (Head) of Research & Development
      • Hajime Yamamoto, General Manager, Public Relations & IR Group


Carlit and Solid Propellants


Carlit's history

1)Situation in the early 1900s

The demand for large volumes of industrial explosives increased due to limestone quarrying for cement raw material.

At that time, dynamite(primarily oil-based) was mainly imported from overseas.

2)Societal challenge at the time

Could industrial explosives be manufactured domestically in Japan without relying on oil-based formulations?

3)Carlit's challenge

Carlit began the manufacture and sale of Japan's first

industrial explosive using salt as the primary raw material

  • the Carlit explosive※ (1918).

    (※Carlit explosives are no longer sold.)

    • Achieved stable supply of low-cost explosives
    • Contributed to Japan's industrial growth




Soichiro Asano,

founder

(1848-1930)



From "Salt" to propellant feedstock

【Product lineup derived from salt as a starting material: electrolysis and electrolytic oxidation-related products】

Sodium Chlorite (NaClO2)

Textile bleaching, food

sterilization, metal surface treatment, and deodorants

Raw material for Carlit explosives

Sodium Chlorate (NaClO3)

Bleaching raw material

for the pulp and paper

industry

Inorganic weed killer

potassium perchlorate

Propellant and pyrotechnic materials (e.g., fireworks, toy pyrotechnics, and signal flares)

Salt

(NaCl)



Weed killer

「Desorate AZ」

Ammonium perchlorate

Ammonium perchlorate (solid propellant), the topic of today's presentation, embodies the core technologies Carlit has developed since its founding.

Electrolysis technology for production

Electrode

We manufacture the electrodes used in our factory's electrolysis processes in-house.

Handling technology for explosives

and hazardous materials

All of the above fall under the Chemical field within the Chemicals segment in our financial statements.