Fiscal Results (nagase2025 IR Full)

Nagase & Co., Ltd. Integrated Report 2025

ztkNAGASE

Nagase & Co., Ltd.

Osaka Head Office:

1-1-17, Shinmachi, Nishi-ku, Osaka City, Osaka 550-8668, Japan

Tel: (81) 6-6535-2114

Tokyo Head Office:

Tokiwabashi Tower, 2-6-4 Otemachi, Chiyoda-ku, Tokyo 100-8142, Japan

Tel: (81) 3-3665-3021

Nagoya Branch Office:

3-28-12, Meieki, Nakamura-ku, Nagoya City, Aichi, 450-6430, Japan

Tel: (81) 52-963-5615

https://www.nagase.co.jp/english/

Integrated Report 2025

ANAGASE

Delivering next.

P. 82 NAGASE Cup, an inclusive track and field tournament

P. 82 Sponsorship of the Formula E World Championship

P. 39 Establishment of Nagase Diagnostics

P. 82

Exhibition at Kumamoto SDGs Mirai Park

NAGASE Integrated Report 2025

01

P. 60 Co-creation Research Institute

with Tohoku University

NAGASE

2024-2025

P. 36

Launch of a developer recycling business

P. 41 CVC investments

P. 59 Biofertilizer technology to support the future of Brazilian agriculture

NAGASE Integrated Report 2025

P. 64 1st One NAGASE Europe Sustainability Summit

| About NAGASE | Table of Contents |

Integrated Report 2025 Table of Contents On the issuance of NAGASE Integrated Report 2025

The NAGASE Group has created this integrated report to

About NAGASE

01 NAGASE 2024-2025

03 Table of Contents 04 Purpose/Values 05 Where We Are

07 NAGASE's History

09 Strengths and Developed Capital

Our Approach to Value Creation

13 CEO Message

19 CFO Message

23 Medium-Term Management Plan

27 Materiality

Implementing Value Creation

―Reform of Our Profit Structure-

31 Message from the Directors in Charge of Sales

33 Initiatives in the Four Areas of Foundation, Focus, Development, and Improvement

43 List of Segments

45 NAGASE's Unique Functions

46 Trading Function―Messages from General Managers

53 Manufacturing Function

55 R&D Function

57 From the Front Lines of Combining Functions to a Sustainable Society

Implementing Value Creation

―Transforming Our Corporate Culture / Functions Supporting Reforms-

63 Roundtable on Sustainability

1. Strengthening Global Collaboration

2. Carbon Neutrality

3. Engagement

4. Supply Chain Management and Respect for Human Rights

NAGASE Integrated Report 2025

03 69 Roundtable Discussion on the Corporate Culture and Corporate Reform

73 Human Resource Strategy

75 People/Environment/Culture

81 Communication with Stakeholders

Governance

85 Management Structure

87 Interview with the Outside Directors

90 Corporate Governance

93 Sustainability Management

94 Risk Management and Compliance

Data Section

97 11-Year Financial Highlights

99 Financial Section

139 Non-Financial Highlights

140 Corporate Information

help shareholders, investors, and other stakeholders better understand the Group's wide-ranging business activities and growth-oriented management approach.

In preparing this fiscal year's report, we focused on explaining the transformative changes and focused business investments we have made, as well as how we combine the Group's resources to build upon these efforts and further accelerate growth.

By verbalizing the spirits and strengths NAGASE has cultivated over 190 years, as well as the unique value these strengths allow NAGASE to create, and clearly conveying these ideas to stakeholders, we will improve our communication efforts in the hope it leads to the further enhancement of our corporate value. We would greatly appreciate your opinions and other feedback.

Referenced Guidelines:

・The International Integrated Reporting Framework developed by the International Integrated Reporting Council (IIRC)

•Ministry of Economy, Trade and Industry's Guidance for Collaborative Value Creation

Period Covered:

April 2024-March 2025 (FY2024)

Some information after March 2025 is also included.

Organizations Covered:

Nagase & Co., Ltd. and the NAGASE Group

About the Front Cover

Integrated Report 2025

NAGASE Integrated Report 2025

We used our fiscal 2025 corporate advertisement as the front cover. NAGASE believes that the Earth is borrowed from future generations. For this reason, we see sustainability as "returning the Earth to future generations in better condition than we received it." We chose the catchphrase "the Earth is borrowed from future generations" to convey our desire to contribute to society by conducting business not only with a focus on the present, but also with an eye toward the future. We continue to use the artwork of Ilya Kuvshinov for our corporate advertisements, having first adopted his work in fiscal 2019.

| About NAGASE | Purpose/Values |

04

NAGASE Group's Management Philosophy

Maintaining the highest standards of integrity

We recognize our responsibility to society and offer beneficial products and services while maintaining the highest standards of integrity. Through our growth, we will contribute to society and enrich the lives of our employees.

Over a period of more than 190 years, NAGASE has constantly maintained the highest standards of integrity, delivering the products and services that are needed by our customers, and by society as a whole.

What we have built up over that time is the trust that our partners and society place in us. Going forward, besides working to solve the problems of "today," the NAGASE Group will be delivering "next" by addressing the new problems affecting society and the whole of humanity through the provision of new materials.

"The Earth is borrowed from future generations." To help realize a sustainable future society, NAGASE will continue working together with partners throughout the world to build a future where people can live with peace of mind.

NAGASE in Numbers

(As of end of March 2025)

NAGASE's Business and Functions

Consolidated net sales

944.9billion yen

Overseas gross profit ratio

54.1%

Five business segments

We are developing our business broadly from upstream to downstream on supply chains in various industries.

▶List of Segments P. 43

Functional Materials Advanced Materials & Processing

Operating margin by industry

Electronics & Energy

Mobility

Life & Healthcare

Founded1832

▶NAGASE's History P. 7

Manufacturing

21%

▶CFO Message P. 19

▶11-Year Financial Highlights P. 97

Trading

79%

Number of bases

101companies in 25countries and regions

Added value born from the three functions

We are creating added value through masterful use of manufacturing and R&D functions in light of the needs of customers and society grasped through the information and networks gained through our trading function.

NAGASE Integrated Report 2025

05 Providing materials and solutions that make full use of NAGASE's unique functions 06

Number of partner corporations

18,000

Customer and societal issues

Trading function

Manufacturing function

NAGASE Integrated Report 2025

Approx.

companies

Employees (consolidated)

7,484

▶NAGASE's Human Resource Strategy P. 73-

and needs

Achieving a sustainable society

R&D function

Our Expansion and Growth

1832-

Founding

In 1832, founder Denbei Nagase established Urokogataya, a wholesale business that handled safflower, funori seaweed, and starches in Nishijin, Kyoto. This is the beginning of the NAGASE Group's long history, which continues to this day. Later on, we established a foothold in the chemical industry by starting to handle synthetic dyes in addition to natural dyes.

Safflower: founding symbol

Expanding from natural dyes to synthetic dyes

Chemical

Established branch office in Lyon, France

• Forging ties with Ciba and UCC

  Synthetic dyes not available in Japan were imported from Ciba in Switzerland along with the methods and techniques for their use. In 1930, through transactions with Union Carbide Corporation, we expanded our handling of raw materials for paints.

  Expanding manufacturing, processing and R&D functions

  Becoming a group of experts with insight and experience in the chemical industry, domestically and overseas

  2001

The merger of Teikoku Kagaku Sangyo, Nagase Kasei Kogyo, Nagase Seikagaku Kogyo, and Nagase Ciba resulted in the birth of a core chemical manufacturer.

Five business Segments

➡See pp. 46-47 for details

Toward our

Strengthening Group functions through M&A and other means

200th year

Founder Denbei Nagase

• Commencement of epoxy resin imports from Ciba

  Began importing epoxy resin, which was not widely distributed in Japan at the time, from Ciba Inc., supporting the long-term, high-level economic growth of Japan with its diverse uses.

  1923

• Commencement of movie film imports from Eastman Kodak in America

  To bring entertainment to a Japan left reeling by the Great Kanto Earthquake, we signed an exclusive agency agreement and began importing movie film.

• Established Nagase Ciba as a joint venture with Ciba Inc.

  Commencement of epoxy resin production.

• Import and sale of photoresist from Eastman Kodak in America

  Introduced Japan to photoresists, which were used in the photolithography process in film development technology.

  Aiming to develop the domestic semiconductor industry, we began the NAGASE Microelectronics Seminar in 1974.

  • Acquisition of PacTech as a wholly owned subsidiary

Establishment of electronic parts and semiconductor manufacturing technologies that support development of every industry

• Commencement of production of developer and stripping agent

  Established a photoresist refining plant in former Nagase Chemicals. Also, began production of developer and release agent.

  Electronics & Energy

➡See pp. 49-50 for details

• Acquired the Asian high-purity chemical business of SACHEM, Inc. (P. 36)

1917-

Establishment of Nagase Shoten

NAGASE Integrated Report 2025

07 Becoming a full-fledged chemical trading company

As we entered the 1900s, we were spurred by the idea that "if only something like this existed, it would help customers and society" to venture overseas and find them, establishing branch offices in Lyon, France and New York, USA. When we were sure of the value of a technology or product we found, we would negotiate tenaciously to bring it back to Japan, where we would study the technology in order to develop and manufacture it ourselves. Our ability to leverage such discernment, the know-how we accumulated, and the networks we built to expand our business across disparate fields is what led to our current broad range of business domains.

Innovating by using enzymes to soften dyed fabric

• Exclusive agency agreement with GE (General Electric Company)

We began trading engineering plastics with GE.

Biotechnology

• Expansion into biotechnology

  Began import of industrial use enzymes from Europe for use in glue removal or de-gluing for textile products.

  1971

• Established Engineering-Plastics Corporation (EPL) as a joint venture with GE.

  Commencement of engineering plastics production and sales.

  1939

• Manufacturing enzymes

  Put effort into domestic production of enzymes, succeeding in 1939 in production of a high-quality glue remover (enzyme) for staining which exceeded products from overseas. Expanded into manufacture of enzymes for industrial use and for food use.

  Food

  • Establishment of the

    2007

Nagase Application Workshop

• • Acquisition of Totaku Industries (now Nagase RooTAC Industries) as a wholly-owned subsidiary

• 1980s and beyond-Exporting to Asia, increasing our Asian market share

  1990

• Established a biotechnology-related research and development center (Presently Nagase Bio-Innovation Center)

  2012

• Formed subsidiary Nagase Viita (formerly Hayashibara)

  Enhancement of biotechnology functions.

  2019

• Made Prinova a subsidiary

  Advanced Materials & Processing

➡See p. 48 for details

NAGASE Integrated Report 2025

08

➡See p. 51 for details

• Acquired the diagnostics business of Asahi Kasei Pharma Corporation (P. 39) (Establishment of Nagase Diagnostics)

  Life & Healthcare

➡See p. 52 for details

• Acquisition of the trading company Aplinova (Brazil) by Prinova (P. 38)

Our Strengths

NAGASE has built its identity with the trust it has earned by maintaining the highest standards of integrity and maintaining a network that can reach technologies and businesses around the world.

NAGASE's

people

09 Financial assets

Non-financial assets

Network and information

NAGASE has solutions

As times have changed, we have created high value-added services by addressing society and

customer problems with solutions that only NAGASE can provide. Honing our foresight and discernment skills and cultivating on-site prowess allows us to be involved in a wide range of upstream and downstream areas in the supply chain, having built the trust required by society and customers and a network that provides reach to businesses and technologies around the world. Our customer comments of "NAGASE has solutions!" are testament to our progress.

Manufacturing

NAGASE's ability to create

is also what makes us unique

Beginning with the establishment of the joint venture Nagase-CIBA Ltd. (now Nagase ChemteX Corporation) in 1970, we have continuously expanded and deepened our manufacturing functions. Having manufacturing functions within the Group enables us to speedily propose materials tailored to the specific challenges and needs of each customer. These accumulated skills have cemented our position as a sought-after partner for management strategy not only for present but also looking to the future. NAGASE is both a trading company and a manufacturer.

Number of partner corporations:

Approx.18,000

companies

Number of bases globally:

101 companies in

25 countries and regions

Number of manufacturing bases:

40 companies in

15 countries and regions

Main manufacturing functions: P. 53

10

R&D

NAGASE Integrated Report 2025

NAGASE Integrated Report 2025

Enhancing and connecting the value of materials

A strong financial structure

Stability, growth, and efficiency

With a high shareholders' equity ratio, we have a strong financial foundation that can withstand changes in the external environment. We also consistently generate operating cash flow, achieving both financial stability and growth. We promote management that emphasizes capital efficiency indicators such as ROE and ROIC, and strive to sustainably increase corporate value through asset portfolio optimization.

Shareholders' equity ratio:

49.4%

Total return ratio:

1 00%

(Fiscal year ended March 31, 2025)

Rating: Rating and Investment Information, Inc. (R&I)

Long-term A Short-term a-1

Since our early days of importing chemical dyes, we have maintained an innovative company culture, including establishing an in-house laboratory for application-specific R&D in the 1930s. We have research bases both inside and outside Japan and are committed to creating new businesses that leverage our high level of expertise and knowledge in areas such as fundamental research, material application development, and technical evaluation. Our researchers also frequently interact with researchers from different research fields, attending each other's research presentations. Most recently, we have been focusing on collaboration with external parties, such as launching joint research projects with Tohoku University.

Number of patent applications

by the Group over the past 20 years (domestic applications in Japan)

Some1,500

Number of industry-government-academia joint application partners over the past 20 years

More than 200

Main R&D function: P. 55

Our people are the main players that create value and assets

Our people have grown through interactions with society and customers while maintaining the highest standards of integrity. Today, our company is built on the drive to be a pioneer across oceans, the ability to overcome numerous changes in the environment in the face of challenges such as a world-encompassing war and economic crises, and the ability to always keep our radar up for unique ideas. To achieve further growth based on individual people, which is NAGASE's greatest strength, we are working to visualize tacit knowledge, develop cross-organizational linkages, and build initiatives that develop people.

NAGASE's management philosophy and origins

Maintaining the highest standards of integrity

Employees (consolidated)

7,484

Our Approach to Value Creation

Towards 2032, Our 200th Year

While continually asking ourselves "Who is NAGASE?", we will strive to engage in growth-oriented reforms and the maximization of management resources.

11 12

NAGASE Integrated Report 2025

NAGASE Integrated Report 2025

CONTENTS

13 CEO Message

19 CFO Message

23 Medium-Term Management Plan

27 Materiality

Combining individual strengths and Group resources for renewed growth as One NAGASE

Laying the groundwork for change, and transitioning to a lean organization

We have made significant strides in strengthening our organization over the three years I have served as

president. In the first year, fiscal 2023, we advanced the core measures of medium-term management plan, ACE 2.0. That year, we launched the QUICK WINS initiative to build a strong foundation resilient to changing business conditions by maximizing and optimizing the use of our core management resources of people, things, money, and time while refining

our business and financial portfolios, enhancing management governance, and restructuring our human resources portfolio. We introduced wide-ranging changes, including reorganizing the business departments and group companies, business planning processes, committee structures, and management policies. The next year, we used that foundation to

steadily shift to a lean management structure by paring down inefficiencies, advancing ROIC management

to improve capital efficiency, and eliminating underperforming businesses. We also began developing a Return on Time approach, assessing how much value can be generated through the most efficient use of limited time, and set fiscal 2025 as the year we would put the policy into action.

In fiscal 2024, we ultimately posted record-high gross profit and raised gross profit margins in every business segment. We also achieved record-high operating income despite higher selling, general and administrative expenses caused by rising logistics costs, which pushed up selling and labor costs. I believe we are well positioned to attain the key goal indicators (KGIs) for fiscal 2025, the final year of our ACE 2.0 plan. We are in this favorable position because of the hard work of employees at all of our business sites. The QUICK WINS initiative is progressing essentially as we planned, as can be seen in the graph below showing

NAGASE Integrated Report 2025

13

QUICK WINS status in fiscal 2024

Develop our business and financial portfolios

Strengthen workplace capabilities

Growth strategies

Eliminate unprofitable businesses

• Implemented in fiscal 2023 ■ Implemented in fiscal 2024

Strengthen workplace capabilities and improve capital efficiency

ROIC management

Use digital technologies

Enhance governance of management processes

Restructure the organization

Delegation of authority

Speed up management decision-making

Improve management efficiency and speed up decision-making

Establish decision-making procedures

Eliminate unnecessary processes

Cross-functional integration

Rebuild our human resources portfolio

Conduct succession planning

Develop human resources

D&I

Maximize human capital and improve engagement

Promote engagement

Use an extended workforce

NAGASE Integrated Report 2025

14

| Our Approach to Value Creation | CEO Message |

where we stood at the end of fiscal 2024. We are on track to attain levels 4 or 5 for nearly all of the indicator categories in the first half of fiscal 2025.

Since becoming president, I've continued working on the same issues I addressed as an executive officer while helping develop the ACE-2020 medium-term management plan launched in 2016. While much has improved over the past decade, fundamental challenges persist, and new issues have emerged amid changes in the external environment. As president, I am now taking the lead in driving reforms to tackle these challenges.

Combining individual strengths and Group resources to enhance resilience

Reforms that drastically change the organization and how we approach and do things naturally can make employees feel confused and want to resist change. I've felt that resistance when I've tried to share and spread our ideas in the Company. NAGASE has always been about the "power of the individual." That approach has been so successful throughout our long history that it is easy to fall into the trap of following precedent. Breaking through that mindset may be our biggest challenge.

However, what was successful in the past is not enough to survive the changing external environment. The world is undergoing a massive sea change, and the NAGASE Group must come together to transform into a lean organization. While preserving our free-spirited culture

and fearless drive to take on challenges, we must

NAGASE Integrated Report 2025

15 become a company where strong individuals move in the same direction and unite their strengths. That is why

I always think about People and Frameworks together. I believe my most important role is to nurture people and strengthen the NAGASE foundation with frameworks that foster the creation of sustainable businesses.

Creating frameworks allows tacit knowledge-often unspoken or taken for granted within specific jobs-to be articulated and shared. Systems for developing human resources must also exercise the delegation

of authority because that is how employees gain experience and build skills. This assumes that, at any level, those delegating and receiving authority share the same values. Because an organization can be weakened if authority is used inefficiently, our method of delegating authority includes thorough dialogue to ensure the values are in full alignment.

We take a careful, methodical approach to introducing new policies because they will not gain traction if they seem to be something the president suddenly created. The first step is communicating the major policies until they become a natural topic of discussion among employees. We then create an environment where employees constantly see and hear the policy and its description, so it becomes very familiar even if not yet fully understood. This process ultimately encourages employees to reflect on the

policies, recognize the relevance to their own work, take ownership, and deepen their understanding. We always follow a three-year timeline for introducing new policies, and the current steps are aimed at implementation starting in 2026.

People are the life and soul of NAGASE

We must also consider how best to nurture and utilize our people. I dislike the term "human capital," now in common use, because people are neither objects nor money. At NAGASE, we view each person as having the potential to envision future scenarios and identify what is needed to make them reality. In this way, our people are the primary source of our value creation.

People are at the very center of NAGASE, and I tell employees, "people are our life and soul." Cultivating our people and continually developing new processes is what will ensure our sustainability. The Group has an exceptional abundance of highly talented individuals.

Everyone has diligently learned their role and provides high value-added services and products that are perfectly attuned to client needs. The growth the Group has achieved is due to its talented people, each acting with vitality and demonstrating their strengths. Employees are like professional musicians who are masters of their instruments while I, as president, am the conductor leading the orchestra. My role is to keep executives and employees fully aware of the changing environment so each person can perform in harmony at their full potential. From the podium, I must face our players, discern each person's talent and character, and allocate resources to enable the Group's best performance.

NAGASE seeks people with the market insight, creativity, exemplary leadership, and organizational skills to create value. We want individuals who can discover

a business gem, refine it with the Group's insight, and fully leverage our resources to deliver unprecedented performance to our clients and develop it for new markets. Enhancing these abilities in our employees will make NAGASE even stronger, and we aim to be an organization where such talent inspires their colleagues so we all advance together with our strengths united under the mindset of One NAGASE.

In developing our people, I also want NAGASE to be a place where many aspire to become president. Working with past presidents gave me valuable insight

into their perspective and management approach, making me aware of the vast gap between their thinking and mine, and the challenge it would be to bridge that gap. Now, as president, I created CEO Accompaniment Program for younger employees to experience and learn by joining me on business trips overseas. Participants, often meeting for the first time during preparations, live and dine together during the trip, freely asking questions and sharing their thoughts on management. In the end,

I encourage everyone to aim to become CEO. Interest in the program has grown as past participants have shared their experiences. Activities like this require little extra effort yet are powerful in creating motivated human resources. It's a perfect example of a process that triggers natural employee growth.

Fulfilling our natural responsibility through sustainability management that reflects added value

In fiscal 2024, we reflected deeply on the meaning of sustainability for our Group. ACE 2.0 defines our materiality (key issues) as improving employee engagement, helping realize a decarbonized society, and providing highly transparent corporate

governance-responsibilities we see as fundamental. Recognizing that social and environmental value are now prerequisites for economic value, and that we

Materiality

NAGASE Integrated Report 2025

16

live in an era of trade-on, I realized NAGASE can offer unique solutions through our three functions of a trading company with a global information network, an R&D company that gives shape to that information, and a manufacturer that commercializes and mass-produces products. I saw that our materiality needed to reflect

the distinct added-value these functions create. We therefore created a project team mainly of younger employees to review our materiality. The result was the addition in September 2024 of three items closely intertwined with our business: extending healthy life expectancy, driving a circular economy, and building supply chain sustainability. These key issues are now embedded in Group company business strategies, ensuring that solving social issues becomes integral to our economic success.

Polishing Rough Gems of Uniqueness to outshine all others

We will fully apply NAGASE's functions to address the key issues linked to our businesses and contribute to addressing issues. Some of our business addressing social issues are the development of adult disposable diapers using the bio-derived superabsorbent polymers (SAP), and the collection and recycling of high-purity

developer solutions used in semiconductor manufacturing.

These products and services start with the thoughts and ideas of employees at our business sites. I believe that both in areas close to our current business and in

NAGASE Integrated Report 2025

17 markets where others already compete, NAGASE can refine products and services to an unprecedented level of uniqueness, turning them into core revenue drivers.

Since becoming president, I have often used the

term "uniqueness," and many employees have asked me to explain exactly what I mean. In the process system I described earlier, this uniqueness is the final step where employees take ownership and express their opinions.

We have also introduced a system using cloud-based MA and CRM tools to collect and digitize the gems discovered by employees with a sharp eye for opportunity. New employees are equally eager to share information they find interesting. I receive a notification when new information is submitted and, if it is intriguing, I personally contact the employee to find out more.

Knowing their submissions are sent to me seems to have increased the volume and enthusiasm of submissions.

The corporate division organizes the submissions and develops projects to commercialize promising ideas. One of the ideas currently in development

could become a pillar of our business by our 200th anniversary in 2032. Rather than a business that grows gradually, it has the potential to be a true game changer. We are carefully incubating it within the Group and with support from external experts.

The next medium-term management plan and beyond, moving forward as

One NAGASE

I already have a clear vision of what the NAGASE Group will look like in 2032 when we celebrate our 200th anniversary, and that vision drives the next medium-term management plan, which we will announce next fiscal year. We expect to achieve the targets of ACE 2.0, now in the final fiscal year, and to reach our key goal indicator (KGI) for the first time. I often say that making a plan is not the goal, and that excessive analysis

and deliberation is unnecessary. Even if a plan scores

• Establish decision-making

  processes

• Increase engagement

• Reorganize

• Speed up management

• Delegate authority

FY2023

Lay the foundation

• Thorough ROIC management

  (ratio management)

• Eliminate unprofitable businesses

• Invest in M&A

  (acquisition of missing parts)

• Business integration (bio, chemical)

FY2024

Transition to a lean management structure

• Achieve ACE 2.0 KGI

(8% ROE, ¥35 billion operating income)

• Discover Rough Gems of

  Uniqueness

• Expand to the Global South

• Execute growth strategies

FY2025

Decisions and execution up your mind and do it

Words and Action

FY2021- Medium-Term Management Plan ACE 2.0

2032 200th anniversary

FY2026- Next Medium-Term Management Plan

Creating new values through One NAGASE

only a 60 out of 100, it must be executed. In the PDCA process, doing outweighs planning, and while checking is important, taking action is essential. We will shift from a PdCa approach to pDcA, executing our strategies with

animal spirits that embody the plan's essence and driving until the plan is completed.

The next plan's theme will be "Creating new values through One NAGASE." We will not significantly change the growth strategy we have pursued so far. I plan to provide an overview of the plan's content and currently ongoing strategies. We will actively invest in our growth strategies and fill any gaps through M&A and other actions. That is how NAGASE walks the talk.

Having laid the groundwork in fiscal 2023 and transformed our corporate culture in fiscal 2024, we are now ready to take even stronger and resonating action in fiscal 2025. We revised the executive compensation system in May 2025 with the intent of increasing

motivation to steadily and sustainably enhance corporate value by linking remuneration to shareholder value, pursuit of both short- and medium- to long-term profits and

efficiency, and a balance of economic and social value. We also plan to develop management strategies geared to both capital stock and stock price considerations.

We welcome your continued support as we move

forward. NAGASE's mission is to use our materials to

deliver solutions that benefit clients, people, and the planet. 18

NAGASE Integrated Report 2025

Acting as One NAGASE, we will keep enhancing frontline execution capabilities and driving fresh growth.

September 2025

Hiroyuki Ueshima

Representative Director, President and CEO

Nagase & Co., Ltd.

| Our Approach to Value Creation | CFO Message |

My responsibility is to improve capital efficiency during our transformational period

Flexibly and strategically supporting management with administrative and overseas business knowledge

It is my pleasure to introduce myself to you following my appointment in June 2025 as Director in charge of Corporate Administration. Since joining the company in 1987, I have worked across a broad range of

management functions, originally in finance and then in information systems, business management, and risk management, where I was deeply involved in all aspects from frontline operations to departmental manager. I have broad experience in core administrative functions, which has given me hands-on experience with the various inner workings that form the foundation of management.

I learned about global management and governance during 14 years in Hong Kong and Taiwan, where I managed local subsidiaries and helped establish regional headquarters. I will combine my

on-site experience and broad management perspective to detect early signs of changes and provide flexible, strategic support to management. I see my role as CFO as extending beyond sound financial oversight to also contributing to improving overall management quality and continuously enhancing corporate value.

NAGASE Integrated Report 2025

19

During my daily activities, I place high importance on communications. I make a point of conversing with employees, as facial expressions, tone of voice, and casual remarks can reveal underlying issues or shifts within the organization. Hearing different perspectives and fostering a sense of organizational unity is essential to positive change.

rapid, efficient management reform by developing our business and financial portfolios, enhancing governance of management processes, and rebuilding our human resources portfolio. The clear priorities and swift execution of ACE 2.0 and QUICK WINS have unified the company mindset and significantly improved decision-making and management execution.

As CFO, a key focus of mine is embedding return on invested capital (ROIC) management into our business and financial portfolio development. By using ROIC

not just as a financial indicator but as a company-wide approach to "ratio management," we are incorporating capital efficiency into all levels of decision-making, even daily operations at our business sites. These sites, in fact, are where initiatives tied to quantitative results, such as exiting unprofitable operations, revising

processes to improve margins, and reformulating supply chains to reduce costs, are producing the greatest benefits.

The cumulative result is clear in our FY2024 performance. Gross profit and all profit categories increased from last fiscal year, with all but net income reaching record highs. This indicates not just a temporary earnings boost, but a fundamental shift toward higher margins and rising structural profitability.

Focus on growth strategies and aggressive investments

We use a four-quadrant matrix of foundation, focus, development, and improvement to evaluate and classify businesses based on profitability, growth potential,

and capital efficiency and ensure the most effective allocation of resources.

In the improvement quadrant, we take strict and swift action on unprofitable businesses. For high-risk projects, investment management now conducts monthly progress reviews instead of quarterly or annually checks.

In the focus quadrant, we are advancing our growth strategy through carefully targeted investments in semiconductors, food, and life sciences.

In June 2025, we acquired the Asia high-purity chemistry operations of SACHEM, Inc., of the United States. The acquisition will give us the ability to recover high-purity solutions for reuse-the first such technology in Japan-and further enhance the environmental performance of

our activities in the semiconductor industry. Additionally, Nagase ChemteX's liquid encapsulant materials command strong market share in the advanced semiconductor segment. We are expanding production capacity and accelerating technology development in anticipation of rapid adoption of generative AI.

4.5

Net sales Gross profit Gross profit ratio (%) (%)

50

19.1

20

6

21.9

25.2

24.1

30

(%)

10

8

Operating income ratio (%)

39.0

35.2

33.3

30.6

Operating income

(Billions of yen)

40

(Billions of yen)

1,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 (FY)

ACE-2020 ACE 2.0

15.0

4.1

4

3.1

3.1

3.5

3.7

3.4

10

2.1

2.4

2

0

0

0

19.2 20

17.0

18.3

250

12.7

13.1 13.1 13.1

155.4

164.7

181.2 10

91.5 102.6 105.4

104.9

114.6

139.4

0

912.8

2016 2017 2018 2019 2020 2021 2022 2023 2024 (FY)

ACE-2020 ACE 2.0

17.9

18.3

500

30

625.2

722.3

40

780.5

807.7 799.5

783.9

750

944.9

900.1

Net sales and gross profit Operating income

20

NAGASE Integrated Report 2025

Ratio-driven management to transform the corporate culture

Medium-Term Management Plan ACE 2.0 launched amid the highly uncertain business environment during the unprecedented challenges of the COVID-19 pandemic. With the appointment of our current president in FY2023, we advanced the ACE 2.0 basic

policies and introduce the QUICK WINS initiative to drive

In the food field, we are directing the Prinova Group's operating income back onto a growth trajectory to boost its profit contribution. To regain profitability

in the nutrition business, which conducts contract manufacturing of sports nutrition products, we are expanding the lineup focus from professional athletes to also target amateurs. We are also entering new regions and strengthening our sales infrastructure in the Global South through the acquisition of food ingredient contract manufacturer and marketer Aplinova.

In the life sciences field, in July 2025, we acquired Asahi Kasei Pharma Corporation's operations related to the manufacture, development, and sales of diagnostic reagents and enzymes. This addition will not only boost diagnostics business earnings, it also has promising compatibility with the enzyme business of Nagase Viita Co., Ltd. and the expanded enzyme library it gives us will be a powerful asset promising many synergies. We are also advancing our bio-derived superabsorbent polymer (SAP) technologies through a joint project to develop environmentally friendly SAP products, including biodegradable adult diapers and marine biodegradable water retention materials for greening and agriculture. We are increasing investment and developing technology to overcome the key challenge of building a mass production structure for SAP materials.

21

NAGASE Integrated Report 2025

The development quadrant is key to our future

growth. We are reorganizing the R&D structure and allocating corporate venture capital to foster startups with the aim of gaining knowledge and creating new businesses in areas beyond our current scope, such as ultrasonic motors, robots, and generative AI technologies.

Investing in future leaders and

establishing a resilient back office

The foundation of the NAGASE Group's sustainable growth is our people, and our corporate value stems from their development.

We seek individuals who lead change in uncertain times, create new value through innovation, and bring a global perspective across diverse environments. People with these three competencies will define the future of NAGASE. I believe the core of our commitment to our human resources is investing in high-quality training to help each person realize their full potential.

Our training system provides both selective and voluntary courses with programs designed to help employees further their careers and advance to higher professional levels. The NAGASE Technical Vitality Program is designed to foster internal entrepreneurship and provide opportunities to develop business in areas outside the Company's current domain. Each year, proposals for new business are solicited and developed through a stage-gate process including screening, pitch selection, and viability testing, with promising ideas then going on to actual business development. Not only does the program boost engagement of younger employee engagement and add vitality to our organization, it has also produced several business success stories.

We develop global human resources through two-way exchanges by sending employees overseas and training staff from foreign subsidiaries in Japan, and by creating a system for exchanges among overseas subsidiaries. Experiencing foreign cultures, both as

visitors and hosts, strengthens our ability to understand and integrate diverse perspectives.

In April 2025, we launched the Management Department Visualization Project to reform administrative operations. The project reviews existing operations to improve efficiency, eliminate excess, deficiencies, and overlap, and raise overall operating quality. The reforms will improve all aspects of the

management functions, including sustainability, while enabling tighter control over rising indirect costs, such as from the head office reconstruction and internal system development. The project also involves reorganizing and visualizing business and administrative department of duties and positions and optimizing human resource allocation. Additionally, the project accelerates the IT integration and digital transformation, improves operating efficiency, and advances the shift to high value-added operations. The result will update work methods, improve productivity, and create a resilient back office providing a solid foundation for frontline employees to implement growth strategies.

Growth and capital strategies aimed at 8% ROE

The ACE 2.0 medium-term management plan has measures to improve capital efficiency and sets 8.0% ROE as a key goal indicator (KGI) to reach by FY2025, the plan's final year. Reaching this target is vital, and we are implementing both a business growth strategy and a capital strategy to ensure success.

The growth strategy focuses on securing returns from current investment projects and carrying out structural reforms, including exiting unprofitable businesses, to streamline and strengthen our business portfolio.

The capital strategy focuses on optimizing the capital structure rather than simply reducing capital assets. With the specific aim of achieving 8% ROE, the strategy targets a 100% total return ratio in FY2025 and will control capital expansion by increasing shareholder returns. With our low net debt-to-equity ratio, using interest-bearing debt-which has lower financing costs than equity-will reduce our weighted average cost of capital (WACC), and we plan to use it effectively for financial leverage.

Another way we are improving capital efficiency is by systematically divesting strategic cross-shareholding. ACE 2.0 targets total divestment of 30 billion yen over the five years started in FY2021. The divestment of

3.2 billion yen worth in FY2024 brought the total sale amount to 25.6 billion, and we expect to meet the target in FY2025.

We expect these business growth and a capital strategies to raise ROE to 8.1% in FY2025. However,

that is not our final goal. We will continue scrutinizing our cross-shareholdings and shareholder returns with the aim of continuing to improve capital returns and setting a higher ROE target in the next medium-term management plan.

Turning constructive dialogue with capital markets into management strength

Constructive dialogue with the capital market is more important than ever. We are fully aware that the Company's price-to-book ratio (PBR) being below 1x is a critical

issue and are committed to addressing it directly. While focusing on raising ROE and reducing the cost of capital, we understand that timely and frank communication with shareholders and investors is essential.

In FY2024, in addition to quarterly results briefings, we held 266 one-on-one and small meetings, which was a marked increase from the previous fiscal year.

Feedback from these sessions is shared at Board of Directors meetings and integrated into management decisions. We also host seminars on topics of interest to shareholders and investors, focusing on promising growth fields. Business managers present seminars on trends in the semiconductor, food, and life sciences fields, sharing insights to actual market conditions and the Company's strategies. With major investments

under way for growth, we look forward to offering more opportunities to engage with shareholders and investors

on our progress and plans.

We are also expanding disclosure on non-financial 22

NAGASE Integrated Report 2025

areas, and are especially focusing on improving the quality and availability information related to sustainability. We understand that providing detailed quantitative and qualitative data is important to showing that the NAGASE Group is growing and evolving with society.

After establishing a solid foundation for change over the past two years, the Company is now at a pivotal moment. While I feel a strong sense of mission and responsibility, I also share great excitement for our

future. I am fully committed to maximizing the corporate value of the NAGASE Group.

Financial targets

To realize the Pursuit of Quality that is a goal of the Medium-Term Management Plan ACE 2.0. To reach this objective, have set financial and non-financial objectives, and we are working to achieve progress in relation to these objectives. As regards financial objectives, we have set Key Goal Indicators (KGIs) and also Key Performance Indicators (KPIs) in regard to reform of our profit structure, reform of our corporate culture and reform of our corporate culture.

➊ROE

(%)

KGIs (Key Goal Indicators) for the Pursuit of Quality

* FY2025 assumptions: 1 USD = 108.7 yen, 1 RMB = 15.6 yen

❷Operating Income

(Millions of yen)

6.4

5.9

5.9

6.6

8 7.7

6

4

40,000

39,078

2

0

2020

2021

2022

2023 2024 (FY)

20,000 10,000

0

30,000

35,263

33,371

30,618

21,916

2020

2021

2022

2023

2024 (FY)

Efficiency indicators

Strategic cross-shareholdings

NAGASE Integrated Report 2025

NAGASE Integrated Report 2025

24

Shareholder returns

•For fiscal 2025, an interim dividend per share of 45 yen and a year-end dividend of 50 yen is planned, for a total of 95 yen (16th consecutive fiscal year of dividend increases)

•As with fiscal 2024, the policy of a 100% total return ratio remains unchanged for fiscal 2025

Status of shareholder returns

100

90

80

70

60

50

40

30

20

10 0

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

Total return ratio

105.4

100.0

76.5

31,500

26,889

48.3

58.9

17,148

8,001

17,000

12,000

+α

12,520

6,006

6,514

13,907

5,662

8,245

9,147

9,888

9,614

(Millions of yen) (%)

Dividends per share/Payout ratio (consolidated)

90

80

70 60

50

40

30 20

10 0

90

80

70 60

50

40

30 20

10 0

90

95

80

70

54

46

30.3

34.9

40.8

35.2

25.1

30.5

(¥) (%)

40,000

Total dividends Repurchase of treasury stock

110

100

Dividends per share Payout ratio

100

Dividends per share (¥)

FY2021

FY2022 FY2023 FY2024 FY2025 (forecast)

03 / 21

03 / 22 03 / 23 03 / 24 03 / 25 03 / 26

(plan)

| Our Approach to Value Creation | Medium-Term Management Plan |

Medium-Term Management Plan

The "Reform Period" from fiscal 2016 to fiscal 2020

was the first stage toward the "Ideal NAGASE" in 2032. During this time, we optimized our portfolio by steadily strengthening focus areas and planting seeds in development areas. However, reforms in profit structure that were dependent on external factors stagnated, leaving some issues unresolved.

Medium-Term Management Plan ACE 2.0 is the second stage of our campaign for achieving an "Ideal NAGASE," and we have dedicated the five-year period it covers-from fiscal 2021 to fiscal 2025-to the pursuit of quality. To us, pursuit of quality means giving concrete form (in our business, our systems, and our corporate culture)

to the consideration that our stakeholders expect from us. We are aiming to achieve this, all while maintaining an ACE (Accountability, Commitment, and Efficiency) approach, in order to facilitate the NAGASE Group's sustainable growth.

Medium-Term Management Plan

ACE 2.0

Stage 2

Stage 3

Stage 1

Medium-Term Management Plan ACE 2.0 Basic Policies

23

Launch of QUICK WINS (April 2023 onwards)

Become a true "Business Designer" ACE 2.0 - Pursuit of Quality

With an ACE (Accountability, Commitment, and Efficiency) mindset and in order to facilitate the NAGASE Group' s sustainable growth, we are giving concrete form (in our business, our systems, and our corporate culture) to the consideration that our stakeholders expect from us

Quality Pursuit

Reform of our profit structure Reform of our corporate culture

Corporate functions that support reform

Growth

Pursuit of Quality 2021-2025

Medium-Term Management Plan

Non-Financial Targets (KPIs)

The NAGASE Group's materiality

The Group partially revised its materiality in September 2024. In addition to our existing priorities of "employee engagement improvement," "realize a decarbonization," and "transparency in corporate governance," the Group added "extend a healthy life expectancy," "achieve sustainable supply chains," and "driving a circular economy" as key issues to which NAGASE will contribute through its business activities (See page 27 for details on materiality). In particular, we have set non-financial targets (KPIs) for "employee engagement improvement" and "realize a decarbonization (carbon neutrality)," and are working to address these issues.

Improve employee engagement

NAGASE Group believes engagement means the company (organization) and its employees have mutual understanding and are looking in the same direction as equal partners, and is promoting initiatives to enhance this.

In fiscal 2024, we saw increases in both the survey implementation rate and the engagement score, which are

non-financial targets. Improving engagement is considered the responsibility of the top management for each organization, and each organization is implementing improvement measures. The Corporate Sustainability Office serves as a cross-functional hub that facilitates the sharing of best practices and supports improvement activities. ➡See page 67 for details.

Carbon Neutrality

We have made the NAGASE Group Carbon Neutral Declaration and, based on that declaration, have also set non-financial targets for carbon neutrality in ACE 2.0. We are promoting efforts to reduce Scope 1 and 2 emissions across the Group on a consolidated basis by at least 37% compared to fiscal 2013, reduce CO2 emissions by 35,000 tons in total through the generation and purchase of renewable energy within the Group, and achieve Scope 2 zero emissions for Nagase & Co., Ltd. on a standalone basis.

Besides its trading function, the NAGASE Group also has a manufacturing and processing function, so we are working to achieve our goals in relation to carbon neutrality in line with a classification of our activities in terms of two axes and four quadrants (trading, manufacturing, visualization, and reduction).

In fiscal 2024, we made progress in using virtual PPA*1 and non-fossil fuel certificates. We also raised awareness within the Group (via proactive energy-saving activities, etc.) from the Group's commitment to obtaining SBT certification*2 in 2024. As a result, Scope 1 and 2 emissions were reduced by 43% (compared to fiscal 2013), exceeding the ACE 2.0 target.

*1: Virtual Power Purchase Agreement (PPA) is renewable energy procurement method in which the power buyer (Nagase & Co., Ltd.) procures the environmental value of renewable electricity generated at a dedicated offsite renewable energy power plant.

*2: SBT certification: Science Based targets (SBTs) are science-based targets for reducing GHG emissions. These targets are consistent with the Paris Agreement, a global agreement on GHG reduction targets adopted by the United Nations in 2015.

NAGASE Integrated Report 2025

25

▶For details on related disclosure items, please see the Sustainability Data Sheet on our website. https://www.nagase.co.jp/english/sustainability/data/

*1: For consolidated subsidiaries under legal accounting standards. Companies that became consolidated subsidiaries during the Medium-Term Management Plan ACE 2.0 are not included.

*2: The engagement survey total score of 60 represents a standard deviation calculated by Link and Motivation Inc. (based on data for over 10,000 companies) with an organizational state defined as "mutual trust and affinity." In order to achieve a state of mutual trust and affinity at NAGASE in which the company (organization) and its employees have a mutual understanding and are looking in the same direction as an equal partners, we have set a total survey score of 60 as the target for our Medium-Term Management Plan ACE 2.0.

* Non-financial targets apply to Nagase & Co., Ltd., Nagase ChemteX Corporation, and Nagase Viita Co., Ltd.

▶For details on disclosed items, please see the Sustainability Data Sheet on our website. https://www.nagase.co.jp/english/sustainability/data/

Scope 1, 2

43% 2025

Target

46%

86,197t

2013

(Base Year)

2021

Result

2022

Result

2023

Result

2024

Result

46,546t

2030

Target

Virtually Zero

Carbon Neutrality

2050 (FY)

Target

Medium-Term Management Plan ACE 2.0 Non-financial Targets

Scope 3

As a trading company with a network of some 18,000 customers, we believe it important to reduce greenhouse gas emissions across the entire supply chain. To this end, NAGASE Group has set a target of reducing Scope 3 emissions by 12.3% (compared to fiscal 2020) by 2030 under our NAGASE Group Carbon Neutral Declaration. ➡For an introduction to specific initiatives, see page 66.

NAGASE Integrated Report 2025

26

Materiality

Background to revisions

We reviewed our some of materiality (key issues) in September 2024. We have traditionally identified

materiality themes for various stakeholders and worked on them accordingly. However, due to factors such as changes in the external environment, in fiscal 2023 we began discussing a review of our materiality. We believe that our materiality should address societal challenges that can be solved with the added value that NAGASE provides, so we added key issues that more closely align with our business operations and organized them in a clear and simplified format for both internal and external use.

Identification process

The Sustainability Committee led the project for identifying materiality. A project team primarily composed of young employees was formed within the committee to review materiality, and carried out the necessary information analyses and explored different directions. Specifically, we analyzed the external environment and the NAGASE identity to identify the societal issues that the Group should address

as materiality.

Spreading the word internally

After establishing each materiality, an animation video was created in nine languages to promote and spread

NAGASE Integrated Report 2025

27 understanding within the Group. The video is featured on the Group intranet and on digital signage at each location.

Identification process

Analysis of the external environment

1. Understanding changes in the external environment since the Medium-Term Management Plan was formulated

   •Organizing through global risk reports, etc.

   •Using the two axes of "importance to stakeholders" and "importance to NAGASE" for mapping risk, we considered materiality based on the most important themes for both parties

2. Interviews with internal parties (general managers, Group companies, etc.) and external parties (experts)

3. Identifying perceived external environments

Analysis of NAGASE's Identity

1. Interpreting the company's history (reaffirming our DNA)

   •A spirit of taking on new challenges

   •Creating value through our trading, manufacturing, and R&D functions

2. Interviews with employees

Identifying materiality

Identifying the societal issues that NAGASE Group should address as materiality

NAGASE Group materiality explanatory video

Materiality

Added in September 2024 following a review

28

NAGASE Integrated Report 2025

Identifying the societal issues that NAGASE Group should address as materiality

• Diversity of human resources

• Demographic changes

  • Climate change and resource shortages

• Food and water scarcity

• Globalization

• Depletion of natural resources

• Geopolitical risk

• Growing awareness of human rights

• Trading function

  
  
  

  • Transparency in corporate governance

  • Driving a circular economy

  • Extend a healthy life expectancy

  • Achieve sustainable supply chains

  • Eemployee engagement imoprovement

  • Realize a decarbonization

  The NAGASE Group's materiality

• Manufacturing function

• R&D function

• A spirit of taking on new challenges

• A highly customer-centric approach

Implementing Value Creation

-Reform of Our Profit Structure-

By combining NAGASE's core functions of Trading, Manufacturing, and R&D, we will refine our businesses and deliver new value to society and our customers.

29 30

NAGASE Integrated Report 2025

CONTENTS

31 Message from the Directors in Charge of Sales

33 Initiatives in the Four Areas of Foundation, Focus, Development, and Improvement

43 List of Segments

45 NAGASE's Unique Functions

NAGASE Integrated Report 2025

46 Trading Function

―Messages from General Managers

53 Manufacturing Function

55 R&D Function

57 From the Front Lines of Combining Functions to a Sustainable Society

| Implementing Value Creation

-Reform of Our Profit Structure-

| Message from the Directors in Charge of Sales |

Combining frontline capability and DX

On-site value creation-

Improving margins by finding the real value

31

NAGASE Integrated Report 2025

In recent years, my primary focus has been on profit

margins. The idea of ratio management is more than just tracking numbers. A low margin often signals that a business model lacks differentiation. By paying

close attention to client needs and critically examining how NAGASE can address them, we can uncover the true value of our business and help the market better understand that value. Client-facing teams often default to maintaining the status quo, but the push to improve margins is a chance to challenge that mindset. I believe it is the responsibility of our business leaders and frontline employees to uncover and deliver the true and lasting value in our services.

Sales representatives must have tacit knowledge of how to communicate and build trust with clients, and that ability is only gained through experience.

I want each person in charge to take ownership of that opportunity, which is why I often visit sites to offer encouragement and support. The job of sales representative is deeply rewarding, and depends more

on emotional intelligence than intellect. Even in the age of generative AI, I believe NAGASE's strength lies in the trust we have built with our in-person, on-site presence.

Change brings opportunity

Partnering in client management strategies

The changing environment conditions are creating opportunities for NAGASE due to our diverse portfolio of chemical products and services and the extensive network of our trading company operation. Our

comprehensive knowledge of the industry, from upstream to downstream, enables us to respond to evolving client needs and collaborate on future-oriented management strategies. One of the main ways I have been doing this

is account planning, which involves analyzing the client's business plan, formulating potential scenarios, and coordinating cross-divisional efforts to apply the Group's full power to propose solutions.

Digital transformation (DX) will play a fundamental role in our future. We are introducing cloud-based marketing automation and customer relationship management tools to integrate information across the organization. I believe that connecting ideas and data horizontally across business departments will not only enhance the quality of our marketing but also further differentiate NAGASE. How we leverage digital tools to achieve this will be a key theme in the next medium-term management plan.

Corporate value maximized with integrity

Over the past few years, discussions at Board of Directors meetings have increasingly focused on the quality of management. As an executive officer

overseeing sales operations and a director responsible for corporate governance, I am committed to meeting expectations not only for business performance but also for driving long-term corporate value.

Upholding the highest standards of integrity is a core principle of NAGASE's deeply rooted management philosophy. I intend to fully adhere to this principle and continue to earn the trust of all our stakeholders.

Advancing the QUICK WINS initiative

Since the launch of the QUICK WINS initiative in June 2023, our ability to respond swiftly to drastic changes in the external environment has enabled us to achieve

better-than-expected quantitative results. I also believe we are generally on the right track in terms of qualitative outcomes.

In the food, life science, and biotechnology businesses under my oversight, the acquisition of Asahi Kasei Pharma's diagnostic reagent business and other operations in FY2024 was a major achievement. Under the next medium-term management plan, our focus will be on steadily translating this success into sustained business growth.

Strengthening the functional integration Advancing R&D into the next stage

Integrating functions and steadily implementing growth strategies

We have made progress in establishing a framework for close collaboration between our R&D and manufacturing functions, which had been an issue. The bio-based superabsorbent polymer (SAP) and the rare amino acid ergothioneine, both of which are being prepared for market launch, exemplify NAGASE's unique approach of combining these two functions with the network of our trading company to enter new markets.

Accelerating the new product and technology development cycle is essential to growing our business. As a first step, we are considering introducing the Scorecard system used by the U.S. company Interfacial Consultants, which became a subsidiary in 2020 and specializes in product and technology development

and manufacturing process solutions for resins and related materials. Scorecard prioritizes R&D projects based on customer needs, marketability, profitability, and materiality for our company. While assessing profitability at the R&D stage remains challenging, we plan to apply the system to our biotechnology business to better align our initiatives with specific client needs.

Another key to our growth will be expanding our R&D functions beyond Japan, where they are currently concentrated, to a more global scale. This may require organizational changes to accelerate collaboration between human resources and technology. We aim to further evolve NAGASE's distinctive approach to R&D by actively pursuing collaboration and investment not only within the Group, but also with external partners.

Long-term approach to enhancing the 32

NAGASE Integrated Report 2025

power of our people and organization

I've started to hear people outside the Company say that "NAGASE has changed." I believe this perception stems not only from changes in top management, but also from our employees, who do not just follow directives, but are proactive about bringing about change. Our people have the resilience to overcome even the toughest challenges because we embrace change-and that, I believe, is our greatest strength.

To remain a company that society needs for the next 100 years, we will build a structure that maximizes the potential of our people and links it directly to organizational growth. By uniting all employees under

a shared vision, we will continue driving the creation of new value and achieve sustainable growth.

Trading Function Source of Customer Contacts

and High Value-Added Information

Roles and strengths of NAGASE's trading businesses

Of all the functions NAGASE possesses, our trading function in particular is positioned as our Foundation, and is the source of cash, connections with customers, and information. We dig up new business opportunities by providing materials and services in the following five segments while gathering customer feedback and needs: Functional Materials, Advanced Materials & Processing, Electronics & Energy, Mobility, and Life & Healthcare.

NAGASE's on-site prowess comes from its dedication

Foundation

Focus

NAGASE Integrated Report 2025

Initiatives leveraging our strengths as a trading company

Development

Improvement

Nagase & Co., Ltd. is contributing to solving industrial challenges by leveraging the network it has built as a dedicated chemicals trading company, its expertise in chemicals, and its solutions for the safe transportation of dangerous substances. We were selected by Rapidus Corporation, who aims for domestic production of cutting-edge semiconductors, as one of the service coordinators organizing the transportation of the semiconductor materials to its semiconductor plant in Chitose City, Hokkaido. In this capacity, it consolidates the materials delivered by suppliers at terminal hubs and supports their mass transportation from Honshu to Hokkaido.

In addition, it provides the chemical industry with the Chemicals AI Cooperative Logistics Matching Service,

an application that matches hazardous chemicals with appropriate transportation services. In this way, it

to this process over the decades. Achieving contacts with society and customers through our trading function allows us to acquire high value-added information. Based

on this information, we are able to maximize the strengths of each of our functions and therefore create new value.

Suggestions

Requests

Suggestions

Requests

Purchases

Sales

Purchases

Suggestions

Requests

Sales

At the same time, functions including credit and inventory management, as well as support for meeting regulatory requirements for chemical products, allow us to provide a steady supply of materials, thereby contributing to maintaining the supply chain even as our business partners' production systems become increasingly diverse.

34

contributes to solving issues at manufacturing sites caused

NAGASE Integrated Report 2025

by labor shortages in logistics by, among other things, improving efficiency and reducing CO2 emissions.

Issues of our foundational businesses

• Optimization of working capital through proper inventory management

• Need for BCP assuming supply chain disruption due to tariffs disputes and other geopolitical risks

• Assuring the supply chain is ready for the reorganization of the domestic petrochemical industry

• Expanded sales of Nagase Viita products using Prinova's food industry networks

• Increasing marketing reach and operational efficiency activities through digitalization

• Further collaboration beyond industry and business boundaries

|

Implementing Value Creation

-Reform of Our Profit Structure-

| Initiatives in the Four Areas of Foundation, Focus, Development, and Improvement |

Reform of Our Profit Structure

The key to profit structure reform is to secure and redeploy management resources to maximize efficiency. Specifically,

from the standpoint of efficiency and growth potential, we have classified businesses into four quadrants: Improvement, Foundation, Development, and Focus, and are executing strategies according to each area.

Reorganizing each of our business domains along the lines of our trading, manufacturing, and R&D functions

Foundation

Development

Focus

R&D (biotechnologies)

Focus

New businesses

(new products, etc.)

Food

Semiconductors

New regions (Global South) Life sciences

Development

Improvement

Foundation

Unprofitable businesses

Businesses at risk of impairment losses

Semiconductors Electrical

appliances

Food Mobility

Chemical Life

industry sciences

List of topics in the "Integrated Report 2025"

Area

Topic examples

Page

Trading function

• Source of customer touchpoints and high-value-added information

Manufacturing function

(Semiconductors)

• Contributing to the industry through synergy of semiconductors, the environment, and technology

P. 35-36

33

Manufacturing function

(Food)

• Prinova Group (Nutrition business profitability recovery, growth strategy)

P. 37-38

Manufacturing function

(Life sciences)

• Nagase Diagnostics diagnostic reagent business

P. 39

Global South

• Initiatives in India, Indonesia, Mexico, and Brazil

• Establishment of joint ventures and expansion of the resin and plastics sales business in India

P. 40

Establishing new

businesses

• Corporate venture capital (CVC) initiative to discover new businesses

P. 41

R&D (Bio)

• Healthspan-extending ergothioneine

P. 41

Recent results

Page

Initiatives to improve

profitability

P. 42

P. 34

Manufacturing Function Semiconductors Special Feature

Contributing to Industry through the Synergy of Semiconductors, the Environment, and Technology

Our growth alongside the domestic semiconductor industry

The semiconductor industry in Japan began when NAGASE Group established a joint venture company as a sole agent for America's Eastman Kodak Company (currently Kodak) and started importing video film that would later be used for semiconductor photolithography technology. Since 1974, NAGASE has held the NAGASE Microelectronics Seminar, a cross-industry workshop for domestic semiconductor-related companies aimed at improving semiconductor technology.

Connections with the full value chain

As a manufacturer and supplier of both materials and equipment, NAGASE expands globally while connected to the full value chain in the semiconductor industry and has carved its unique position. It is because the Company has manufacturing functionality within the Group, that we can solve critical problems at key processes and respond quickly to changing customer needs or technology trends. Moving toward our customers' next goals we improve the surrounding processes and involve relevant parties when offering suggestions.

Number of business partners as a chemical trading company Approx.

18,000 companies

Announcement of the acquisition of SACHEM's Asian business

In preparation for the full-scale launch of our recycling business for high-purity developer (TMAH: tetramethyl ammonium hydroxide), a chemical solution essential to the semiconductor manufacturing process, we acquired the semiconductor-grade high-purity chemicals business of US-based SACHEM, Inc. (hereinafter, SACHEM) in the Asia region in June 2025. SN Tech Corporation (hereinafter, SN Tech), a joint venture between NAGASE, Nagase ChemteX, and SACHEM, which has advanced technological capabilities and expertise in the area of high-purity chemicals,

has been working on the recycling of developer for LCD panels since 2008. Based on the know-how we have accumulated, we will launch a business that recovers and recycles developer for advanced semiconductors, leading to the expansion of our semiconductor manufacturing business.

Semiconductor gross profit (100 million yen)

Contributing to the industry's environmental efforts through developer recycling

Until now, used developer has been treated as chemical waste, posing environmental and financial challenges for the

semiconductor manufacturing industry. In this business, we will use advanced electrolysis and refining technologies to recover and recycle these materials and deliver them back to semiconductor manufacturers. This cutting-edge initiative is the first of its kind

in Japan, and one of only just a handful in the world. The new plant is equipped with electrolysis and refining facilities for the manufacture and purification of TMAH. In addition to reducing the environmental impact of TMAH, this initiative will also reduce the costs associated with procuring a stable supply of the material, as well as its disposal as industrial waste, thereby contributing to improved profitability.

NAGASE's value provided

Semiconductors (digital industry)

Ability to make suggestions to the electronics industry

Rebuilding each supply chain

×

Environment (greenification)

Materials / processing /

low-consumption electrical products

×

Technology

Customization / sheeting technology / recycling technology

Issues in the semiconductor industry

• Growing importance of semiconductors (growth of IoT, advancement in communication technology, etc.)

• Economic security (geopolitical risks local production and consumption needs, rebuilding the supply chain)

• Technology trends, such as Chiplets

• Environmental regulations, recycling (changes in products handled)

600

159

334

175

300

200

100

0

300

500

Foundation Focus

Approx. 4 billion yen from SACHEM,

540

400

Inc.'s Asian business

360

FY2024 Actual FY2025 Forecast FY2030 Concept of figure

New TMAH recovery/recycling plant in HigashiOsaka City (opened March 2025)

Advantage NAGASE offers to customers and society

• Reuse of TMAH and water • Reduction in industrial waste treatment

• Energy reduction • Response to environmental issues

TMAH: Tetramethyl ammonium hydroxide

Strengths (resources) and strategies behind the value offered by NAGASE

35 36

Green Mobius

*1 DDS = Developer Dilution System

*2 TMAH is a material used in all devices critical for environment and materials

NAGASE Integrated Report 2025

Solving the challenges of advanced semiconductor packaging with liquid molding compounds (LMC)

We began manufacturing epoxy resins in 1970, and introduced the technology for processing it into liquid molding compounds to Japan in the 1980s. Since then, the technology has evolved to become applicable to a wide variety of purposes and shapes.

Nagase ChemteX's liquid molding compounds have become the de facto standard for applications involving advanced semiconductor packaging, which are essential for technologies such as

generative AI. As the semiconductor encapsulation process grows increasingly complex, with semiconductors stacking ever more layers, we respond to customers' needs with our advanced

formulation technology and highly reliable molding compounds. In 2000, we succeeded in developing sheet molding compounds, benefiting customers through improved processes and reduced cost.

NAGASE Integrated Report 2025

Complexity of semiconductor package configuration

Functions required for a semiconductor molding compound

× ×

Positive Warpage Zero Warpage

Negative Warpage

Manufacturing Function Prinova

A key driving force in food, one of our focus areas

Realizing rapid and sustainable growth

The US-based Prinova Group, which joined the NAGASE Group in 2019, operates a business in the food and nutrition field with a vertically integrated value chain that handles everything from material supply to product development and final product manufacturing. It is one of the world's biggest players in the field of food ingredients, including vitamins, amino acids,

minerals, sweeteners, and caffeine. Doing business primarily in Europe and the Americas, Prinova has particularly extensive experience in the sports nutrition market, where it

Carried products has a wide network.

Prinova is still actively investing in expanding its business, and continuing its work to strengthen its manufacturing capabilities and expand into new business areas.

*TIH: The Ingredient House, LLC *Lakeshore: Lakeshore Technologies, LLC

*Flavor Tec: Flavor Tec - Aromas De Frutas Ltda

Message from the Prinova Group President & CEO

A partner who continuously provides value by evolving and adapting to the Global market

Prinova has leveraged its strength as a global trading company with one of the world's largest distribution networks for food and nutritional ingredients to expand its contract manufacturing business for premixes, flavors, and other products. In doing so, our business model has evolved into a hybrid combination of trading and manufacturing. Since becoming part of the NAGASE Group in 2019, we have further expanded the scale of sales of the 23 Prinova group companies, which are located primarily in the US and Europe. We have also steadily strengthened our manufacturing capabilities and broadened our market access.

Our growth extends beyond mere expansion of scale. By integrating the scale of our trading function with innovation in manufacturing technology, we have been able to create new value across the entire supply chain. Moving forward, we will continue to develop our hybrid business model, aiming to become a trusted partner in the global nutrition industry.

Masaya Ikemoto

Chairman, President & CEO, Prinova Group LLC

* Starting from fiscal year 2025, the Prinova Group partially changed the classification of manufacturing costs and selling, general and administrative expenses. The figures,

including those for prior years, represent approximate amounts after reclassification reflecting this change.

Nutrition business profit recovery (million USD)

Outlook for efficiency improvements

Improving topline performance

Prinova is working to improve its project management and revitalize its sales organizations. It is identifying the priorities and necessary resources for each customer segment, while also expanding its focus to include the life and wellness market in order to capture market growth. The Company is also offering convenient packaging such as stick packs.

Cost reductions through efficiency improvements

By getting automated equipment introduced in fiscal 2024 operating at full capacity, and implementing advanced process controls, the

Company will increase productivity and improve

the efficiency of each process. This will enable it to

curb fixed and variable costs, eliminate waste, and improve profitability, allowing the business to return to profitability in the future.

The state of the nutrition business

The launch of the Utah Plant in the United States is not proceeding as planned, resulting in targets for the overall nutrition business not being met. Prinova is investing resources into achieving profitability as soon as possible, which is the company's top priority. Currently, it is working to reduce costs through efficiency improvements and improve its topline.

Restoring profitability in the nutrition business

2024 2025 2026 2027 2028 2029 (FY)

0

50

0

10

64%

67%

71%

76%

81%

100%

100

(million kg)

20

Production volume

Direct labor costs/kg (compared to 2024 numbers)

(%)

150

40

30

20

10 0

-10

-20

-30

Gross Profit

Operating Profit

Two initiatives

for a rapid return to profitability

Allowance for

doubtful accounts: Approx. 8 million USD

2022 2023 2024 2025 2026 2027 (FY)

×

Network of 1,000+

customer companies

Product lineup

Concrete Growth Measures

Strengthening supply chain initiatives

(Expansion into South America through acquisition of Aplinova)

As the major global players it supplies expand into the South American market, the Prinova Group launched its full-scale expansion into the Global South by acquiring Brazil-based food ingredient trading company Aplinova in April 2025. With

Aplinova serving as Prinova's local point of contact,

adoptions of products carried by Prinova in the region have expanded, and the Group has increased its presence in Brazil. Moving forward, Prinova

will leverage its customer base of more than 1,000 companies with an aim to achieve gross profit of approximately 2 billion yen by 2030.

Expanding the product portfolio

In addition to strengthening its supply chain, Prinova also invests in the research and development of unique products that leverage its manufacturing technology. Such expansion of the product lineup contributes to its trading business in terms of both volume growth and market expansion. By deepen cooperation between its bases, it will accelerate the creation of unique and innovative products.

Collaboration within the NAGASE Group

Collaboration within the NAGASE Group, such as the global distribution of Nagase Viita's enzyme products via Prinova, is generating a variety

of synergies including the expansion of sales channels. Moving forward, we will accelerate our global expansion into food through further collaborations of this nature.

Finding a "missing part"

Achieving approx. 20% CAGR growth in South America

Aiming for approx. 15 million USD gross profit by around 2030

NAGASE Integrated Report 2025

NAGASE Integrated Report 2025

37 38

Manufacturing Function Life Sciences

New Regions Global South

Launch of Nagase Diagnostics Co., Ltd.

In July 2025, the NAGASE Group incorporated Nagase Diagnostics Co., Ltd. (NDX), which took over the diagnostics business of Asahi Kasei Pharma Corporation, in order to strengthen its manufacturing capabilities and functions in the life sciences field. NDX develops, manufactures, and sells diagnostic reagents, enzymes, and other life

science-related materials.

Diagnostics business

Diagnostic reagents are used to analyze body fluids (blood, urine, etc.) as part of routine health checkups and to monitor the effectiveness of disease diagnosis and treatment. They are widely used by medical and research institutions. Diagnostic enzymes are the raw materials used to manufacture diagnostic reagents. By reacting with specific substances (chemical components, proteins,

metabolites) contained in blood and other body fluids, they generate and/or amplify optical signals, enabling precise measurement of the concentration of the target substance.

Building a foundation for synergy through human and technical exchanges

The NAGASE Group believes that in order to achieve the

true purpose of Nagase Diagnostics' incorporation into the Group, which is to generate synergy, it is essential to understand the new company's business and get to know its people. On the first day of the incorporation,

a kickoff ceremony was held in the Ohito District of Shizuoka Prefecture's Izunokuni City, where the company's manufacturing and development base is located, with approximately 200 employees in attendance. At a later Group employee exchange event held at NAGASE'S Tokyo Head Office in July, NDX Representative Director Hironao Makise introduced the company's business and its employees, helping to deepen its ties with the Group.

We are working to strengthen the next base by accelerating our investment into human and other resources in India, Indonesia, Mexico, and Brazil (the Global South), positioned as new regions expected to see continued growth moving forward.

Latest initiatives in the Global South

Become a reliable partner for seizing opportunities in rapidly growing India

CEO, Nagase India Pvt.

Ltd.

Eiroku Oki

With the Indian market growing rapidly in recent years due to population growth and the

international situation, Japanese companies in the automotive, food, and many other industries have been expanding their presence in the country. There are also expectations for a future revitalization of the semiconductor sector. Nagase India, which celebrated its 60th anniversary this year, aims to become a reliable partner for companies taking on the challenge of doing business in a different cultural and business environment. We will do this by further leveraging strengths including the know-how and networks we have built in India, as well as our excellent Indian staff with many years of experience, and by providing support

such as back-office development. We will also expand our businesses that utilize India's highly competitive materials.

Establishing a joint venture to expand the

connector business

NAGASE established a joint venture with Japan Aviation Electronics Industry, Ltd. (JAE) in March 2025 with an aim of expanding sales of automotive and motorcycle USB chargers and connectors in the Indian market. Already one of the world's leading markets, the Indian market for these products is expected to grow even further as government

policies accelerate the country's transition to electric vehicles. Building on its know-how on doing business in India, as well as its local networks, NAGASE will grow this business alongside JAE, which is a global supplier of automotive connectors and harnesses. We aim to strengthen our customer support, establish production capabilities through collaboration with local partners, and reinforce

the supply chain.

Expansion of our high-value-added plastic and

resin business

While our plastic and resin business has long led the ASEAN and Chinese market, we established a joint venture company in June 2025 with the aim of expanding it into the Indian market. The new company, NAGASE WAHLEE INDIA PRIVATE LIMITED (NWI), is a partnership between Taiwan-based Nagase Wahlee Plastics Corp. (NWP), our main distributor of plastics in Greater China, and Nagase India (NIN).

NWI will combine NWP's expertise in the needs and business practices of Chinese and Taiwanese customers with NIN's insights on the Indian legal and

regulatory system. In this way, it will carefully identify new business needs in India, thereby maximizing business

opportunities.

Uniqueness of Nagase Diagnostics

NAGASE Integrated Report 2025

39

In vitro diagnostic (IVD) assay kit using a unique enzymatic method

Utilizing a unique enzymatic method, NDX developed the Lucica™ GA-L assay kit for measuring glycated albumin (GA), an indicator of blood sugar management, and has been manufacturing and selling it since 2004. In 2022,

it launched Lucica™ GA-L2, an assay kit compatible with a standard reference material for GA assays, allowing for higher reliability in medical and laboratory settings. It also manufactures and sells Lucica™ MI, an assay kit for measuring myo-inositol in urine samples, helping to screen for impaired glucose tolerance, which cannot be determined by fasting plasma glucose testing alone.

Strengthening the diagnostics business and contributing to long-term Group growth

NDX develops, manufactures, and sells various diagnostic reagent enzymes used in a wide range of applications, including the analysis of blood glucose

and lipids, kidney function, and liver function. Its 40

NAGASE Integrated Report 2025

strength lies in the manufacture of a wide variety of enzymes using its unique microbial culture technology, among other capabilities. The NAGASE Group has long engaged in the research, development, manufacture, and sale of industrial enzymes and enzymatic reaction products, primarily through our core manufacturing company in the biotechnology business, Nagase

Viita, providing products to a wide range of industries. Moving forward, the NAGASE Group will combine NDX's diagnostic enzyme manufacture technology and application know-how with its existing businesses to create technological synergy. At the same time, we will leverage NAGASE's global network to accelerate our expansion into the medical and healthcare markets in India and Southeast Asia, which we expect to grow in the future.

Developing Next Generation Businesses Corporate Venture Capital

Initiatives to Improve Profitability

Entering new business areas and acquiring new technologies through CVC investment

Piezo Sonic

The Company has begun initiatives with CVC starting from fiscal 2023 in order to elevate our investment in start-up companies who have new business ideas, and to acquire a broad array of knowledge of cutting-edge technology and business models. Spearheaded by Nagase Future Investments established in April 2025, this initiative is promoting the creation of a foundation for the creation of next-generation businesses as a

business intelligence function. As of the end of fiscal 2024, we have invested in 10 start-up companies in areas outside those of NAGASE's existing businesses.

For example, we have invested in Highreso Co., Ltd., which operates a GPU cloud service, SAKA NO TOCHU Co., Ltd., which promotes ecological agriculture, and enstem Inc., which provides vital signs monitoring

services using wearable devices, among other companies developing next-generation businesses. NAGASE continues to invest and form partnerships through CVC, accelerating its search for new business opportunities.

Recognizing withdrawal losses early, aiming for future business growth

We are working to ensure that future losses are as close to zero as possible. Regarding the assets of unprofitable operating subsidiaries and assets of concern for

impairment loss, we have formulated and are implementing a concrete action plan for reducing losses, without eliminating the possibility of withdrawals or sales.

Further, the Company utilizes its conference bodies, with the corporate divisions and business departments collaborating, as it aims to strengthen its monitoring.

Regarding fixed assets and investment securities at risk of impairment losses, the Company clarified the items to be monitored by establishing criteria for listing. Furthermore, the supervising organization formulated countermeasures and plans for those items, and submitted them to the corporate division. By establishing and deploying this kind

of monitoring process, the Company is working to prevent the occurrence of losses in advance.

Previous withdrawals

In fiscal 2024, the Company decided to reorganize and withdraw from the three businesses in the table below, and then executed those withdrawals. In addition, the Company recorded impairment losses of approximately 5.5 billion yen, including valuation losses on certain securities, as well as impairment losses on goodwill, etc. in the United States.

We will make improvements with an aim of keeping losses in fiscal 2025 under 1 billion yen.

By the end of 2025, the Company plans to transfer all of its shares of optical device functional material developer and manufacturer Inkron Oy to an electronics parts manufacturer in Taiwan as part of an effort to optimize the allocation of management resources.

R&D Bio

Commercialization of the longevity vitamin ergothioneine

Present in fungi in small quantities, ergothioneine (EGT)

NAGASE Integrated Report 2025

41 is a next-generation functional material expected to have a wide range of applications including treating the symptoms of neurodegenerative diseases (such as Alzheimer's disease and Parkinson's disease), depression, skin aging (wrinkles and spots) due to UV light, and cataracts, as well as controlling glycative

stress. EGT cannot be produced in the human body, and it decreases with age and with stress. EGT is difficult

to naturally extract with high purity and leaves a large environmental footprint when chemically synthesized so there were issues with commercialization.

In 2020, Nagase Bio Innovation Center succeeded in raising the production of EGT about 1000x over

the conventional method using smart cell technology (biosynthesis technology that artificially maximizes the substance production capability of cells).

The center is currently working toward launching products in the cosmetics field, and plans to eventually expand into food products, aiming to contribute to the extension of human healthspan worldwide.

42

NAGASE Integrated Report 2025

Financial scale of operating subsidiaries' operating losses, equity losses, impairment losses, and unprofitable business arrangements

Beauty

Health

Units: millions of yen

FY2021 FY2022

FY2023

−2,276

FY2024 Plan for FY2025

−1,173

Fixed asset losses

Securities valuation losses

Others

−135

−1,234

−2,048

Loss under

1 billion yen

Loss due to withdrawal from

Aiming for zero losses

thin-film processing business for

glass substrates in China

Approx.

9 billion yen loss

Approx.

8 billion yen loss

Approx.

5 billion yen loss

Approx.

5.5 billion yen loss

| Implementing Value Creation

-Reform of Our Profit Structure-

| List of Segments |

List of Segments (As of the end of March 2025)

Business segments

Shares of gross profit held by manufacturing and trading*1

Departmental initiatives Main products and services

Operating income and operating margin (Billions of yen)*2

Gross profit by area

R&D expenses

(Billions of yen)*3

Capital investment

(Billions of yen)*3

Gross profit

Operating income

Performance Chemicals Dept.

The Performance Chemicals Department provides high-performance materials for a wide range of industries, including coatings, inks, paints, urethane, toner, textiles, paper-making, and LCD. It is also responding to customers' needs by developing sustainable products, demand for which is rapidly increasing, based on the key words "environment" and

"bio," and by effectively utilizing the functions of the NAGASE Group as a whole, including manufacturing, R&D, and processing.

Speciality Chemicals Dept.

The Speciality Chemicals Department provides chemical materials, devices and processing services for the chemical industry, with a focus on semiconductor materials, oils and surfactants, organic synthesis, petrochemicals, polymers, etc. Playing an important role in the chemical industry's supply chain with an extensive network of business partners

globally, and the know-how obtained through handling over 10,000 product

Performance Chemicals Dept.

Raw resin materials, plastics and resins, solvents, pigments and dispersions, dyes, colorants, additives, raw urethane materials, release agents, conductive materials, functional films, adhesives, sanitary product materials, the Mixing ConciergeTM service, the Dispersion Processing Total Coordination service, the Chemical Search service (for the CASE field), the Chemicals AI Cooperative Logistics Matching Service, and NAGASE's original Chemical Industry Safety Education VR Goggles

Speciality Chemicals Dept.

Organic chemicals, inorganic chemicals, high-purity chemicals, various types of additives, polymers, bio-products, specialty epoxy resins, specialty acrylic rubber materials, polymer filters, enzymes, water treatment equipment,

Operating income Operating margin

10.4

0.4

Europe 2%

Americas 13%

ASEAN

10%

Others

1%

GC

65%

Japan

1 1.2

0.7

0.2

181.2*5

(Billions of yen)

39.0

(Billions of yen)

1.2

9.2 8.8

6.7%

6.1

6.0%

5.6%

4.2%

items, it is also developing new businesses with unique technologies, thereby helping to solve the issues of customers all over the world.

Polymer Global Account Dept.

With a well-developed sales network and experienced local staff in the Asia Pacific region, the Polymer Global Account Department works with global companies to sell plastic resins for a wide range of industries, including office equipment and the electrical and

electronics industries. It is also focusing on eco-friendly businesses and providing environmentally friendly materials and services, such as recycled materials and biomass plastics.

Electronics Dept.

In addition to providing functional materials and their constituent components to the silicon wafer, semiconductor, electronic components and display industries, the Electronics Department is working with partner companies to develop products that align with market and customer needs.

Advanced Functional Materials Dept.

The Advanced Functional Materials Department offers products and services developed based on Nagase ChemteX's formulation,

compounding, precision cleaning, surface treatment, and photosensitive materials design technologies. These include but are not limited to formulated epoxy resins, developer, re-claiming of stripper, and high-performance materials for 3D printing. Its customers include domestic and foreign companies in key sectors such as the electric/electronics industry, mobility, energy and the environment, semiconductors (photolithography and encapsulants), and displays.

Mobility Solutions Dept.

NAGASE Integrated Report 2025

43

The Mobility Solutions Department contributes to the realization of a safe, secure and comfortable mobility society by grasping the needs of the mobility industry, including automobiles and motorcycles, agricultural machinery, construction machinery, and aircraft, and by offering diverse solutions through pursuing new technological innovations.

metal organic framework (MOF), and contract manufacturing matching services

Polymer Global Account Dept.

Engineering plastics, commodity plastics, packaging materials and other plastics-related products and services

Electronics Dept.

High-precision abrasive materials, optical materials for displays, touch panel components, functional coating, conductive and insulating materials, adhesive and encapsulating materials,

high-heat-resistant films, optical lenses, high-frequency devices, low dielectric materials, sensing modules, optical materials for XR, semiconductor and electronic device-related equipment

Advanced Functional Materials Dept. Formulated epoxy resins and related materials, photolithography materials for flat panel displays and semiconductors

Mobility Solutions Dept.

Various plastics, functional paints, adhesives, lightweight components, decorative components, HMI components

CASE-related:

xEV-related components, heat management components, battery materials, sensors, LiDAR devices, autonomous driving technologies

2022 2023 2024 2025 (FY)

(actual) (forecast)

7.6

6.6 6.9

5.3

3.5% 2.7% 3.2%

3.3%

Operating income Operating margin

2022 2023 2024 2025 (FY)

(actual) (forecast)

12.312.9

9.2 8.8

6.8% 6.1%

7.6%

7.7%

Operating income Operating margin

2022 2023 2024 2025 (FY)

(actual) (forecast)

Operating income Operating margin

4.7 4.2 4.2

3.6

0.17 0.16

0.14

Europe 2%

Americas 19%

ASEAN

21%

Others

1%

GC

40%

Japan

NAGASE Integrated Report 2025

3.8% 2.7% 3.2%

9%

Europe 0%

Americas 4%

ASEAN

24%

GC

33%

Europe 5%

Americas 6%

ASEAN

7%

GC

25%

Others

1%

Japan

38%

Others

3%

Japan

54%

2022 2023 2024 (FY)

(actual)

1

0.5 0.6

2022 2023 2024 (FY)

(actual)

2.2

2.3

2.2

2022 2023 2024 (FY)

(actual)

2022 2023 2024 (FY)

(actual)

2.1

1.1

1.2

2022 2023 2024 (FY)

(actual)

3.1 2.8

1.9

2022 2023 2024 (FY)

(actual)

0.67

0.27 0.32

44

3.2%

Life & Healthcare Products Dept.

In the pharmaceutical, medical, cosmetics, household goods, and food products (processed foods and nutrition) sectors, we provide a wide range of solutions throughout the world through the NAGASE Group's manufacturing, processing, procurement, logistics, research, application development and regulatory-related functions. The Life & Healthcare Products Department is striving to contribute toward the realization of healthy, enriched lifestyles.

Life & Healthcare Products Dept. Pharmaceutical products (APIs, additives, intermediates, and other materials), materials for in vitro diagnostics, raw materials for cosmetics and household goods (active ingredients, additives, emulsifiers, and fragrances), food ingredients (nutritional materials, functional saccharides such as TREHA®, glycosides, enzymes, and other processing aids), premixes (OEM/ODM), agricultural applications (including livestock raising) and fisheries, and endotoxin removal services

2022 2023 2024 2025 (FY)

Operating income Operating margin

(actual) (forecast)

8

7.3

3.9%

2.9% 3.4

1.2%

2.5%

10.5

2022 2023 2024 2025 (FY)

(actual) (forecast)

17%

Europe 19%

Americas

39%

ASEAN

2%

Others

0%

Japan

37%

GC

3%

2022 2023 2024 (FY)

(actual)

1.5

1.6

1.8

2022 2023 2024 (FY)

(actual)

2022 2023 2024 (FY)

(actual)

5.7

4.3

3.9

2022 2023 2024 (FY)

(actual)

*1 The trading portion of gross profit includes Other/Corporate, and takes into account the effect of consolidated adjustments.

*2 In order to realize more appropriate management of the reported segments, starting from the fiscal year ended March 31, 2025, the method used for allocating company-wide common expenditures is being partially adjusted, with part of the company-wide common expenditures that were previously included under "Other" being allocated to individual segments. Data for fiscal 2022 are presented prior to this allocation; data for fiscal 2023 and fiscal 2024 are presented after this allocation.

*3 These data were calculated based on the business classification adjustment conducted to accompany the business restructuring implemented in October 2023. (This does not apply to the actual performance data for R&D expenditure and capital investment for FY2022.)

*4 ■ Other/Corporate: Includes businesses not included in reported segments and eliminated inter-segment transactions, etc.

*5 Starting from the first quarter of the fiscal year ending March 31, 2026, the classification of manufacturing costs and selling, general, and administrative expenses at the Prinova Group were partially changed. However, the figures for the fiscal year ended March 31, 2025 are those prior to the retrospective application of the updated accounting policy.

Note: Other/Corporate is not included in the calculations of segment composition ratios for gross profit and operating income.

| Implementing Value Creation

-Reform of Our Profit Structure-

| Trading Function――Messages from General Managers |

Trading

Manufacturing

R&D

Functional Materials Segment

Performance Chemicals Dept.

GM, Performance Chemicals Department Masuo Higuchi

Examples of products

• Coating materials used in automotive manufacturing and construction

• Dyes used in garment manufacturing

• Toner materials

• Materials used in displays for TVs, smartphones, office equipment

  Examples of products and services contributing to solving societal and customer issues

• Joint development of adult diapers utilizing bio-derived super-absorbent polymers

• Chemicals AI Cooperative Logistics Matching Service

• Mixing ConciergeTM which visualizes the mixing process (P. 59)

  Results

  Effective utilization of digital technology

  Challenges

  Unprofitable business reorganization and growth strategy

  Meeting the needs of individual customers and industries with our unique technologies

  As the needs of manufacturers become more diversified, we are promoting the commercialization of a service model that not only involves offering customers proposals for raw materials, but also leverages digital transformation (DX). For example, our Chemicals AI Cooperative Logistics Matching Service optimizes logistics between multiple companies, helping solve logistical problems and reduce GHG emissions. Meanwhile, our Mixing Concierge™ service visualizes liquid mixing processes, which are an essential part of manufacturing, improving productivity and facilitating the transmission of skills to the next generation. Furthermore, we started offering Chemical Search, a material search service designed specifically for the CASE* field. Going forward, we will

  support the continued

  Integrating manufacturing function to improve profitability

  Fukui Yamada

  Fukui Chemical

  Industry Co., Ltd.

  pl

  st bu cu of

  Nagase ChemteX

  Hyogo Corporation

  Harima Office

  Okayama Nagase ChemteX

  Corporation Okayama Office

  
  
  

  We achieved profitability in our color former business by withdrawing from the U.S. color former business, as well as by revising unprofitable business arrangements and streamlining operations at our manufacturing sites in Japan. Furthermore, in April 2025, the functional dyes business (Fujita Plant) of Nagase Viita was integrated into Nagase ChemteX's Okayama Office, and Fukui Yamada Chemical Industry was made a subsidiary of Nagase ChemteX, with the aim of strengthening our chemical manufacturing function. Moving forward, we will aim to strengthen our profit base and achieve sustainable growth across the entire Group by enhancing production efficiency and strengthening our development capability through technology synergies, promoting business continuity

  anning (BCP) measures as part of our rategy to develop our network of siness locations, and making talent

  Company Company

  A B

  Company

  A

  Company

  B

  
  
  

  Combined Before

  (Matching inefficient loads) Chemicals AI Cooperative Logistics Matching Service

  development of the

  chemical industry by combining unique materials and technologies with our digital insights.

  *Coatings, adhesives, sealants, and elastomers.

  ltivation more efficient through the flow

  talent between business locations.

  
  
  

  NAGASE Integrated Report 2025

  Fukui Yamada Chemical Industry Co., Ltd. 46

  
  
  

  NAGASE Integrated Report 2025

  NAGASE has solutions

  Customer's voices

  NATOCO Co., Ltd.

  Providing immersive VR-based educational content as a partner for eliminating accident

  We introduced NAGASE's safety education VR goggles as a measure to prevent occupational accidents, which is a major issue in the chemical industry. By adding immersive VR-based education to the case studies used in our traditional classroom training, participants can now benefit from both experience-based learning and detailed explanations. This has proved especially useful in promoting the understanding of participants, particularly new employees and those coming from other industries, and instilling in them a safety mindset. We feel that the educational content, which was supervised by the Japan Paint Manufacturers Association, is both practical and of high quality, owing to its industry-specific nature, as well as its high functionality that allows it to be adapted to group training. The elimination of accidents is an important issue that directly affects the sustainability of our production activities, our customers' peace of mind, and employees' safety. Like the saying goes, "NAGASE has solutions." We are looking forward to more of such unique proposals from NAGASE.

  Tomoaki Kogure

  Plant Manager, Gunma Plant, Production Department NATOCO Co., Ltd.

  Jumpei Yamada

  Total Solution Office Performance Chemicals Dept. Nagase & Co., Ltd.

  Nagase RooTAC Industries Nagase Viita

  Life & Healthcare

  Mobility

  Prinova Group

  Nagase ChemteX

  Electronics & Energy

  Functional Advanced Materials Materials & Processing

  Manufacturing function

  ➡See pages 53-54 for details

  Providing value through our own in-house materials and proprietary processing know-how, from functional resins to food materials

  Trading function

  ➡See pages 46-52 for details

  Solving problems through customer-oriented sales activities that are based on high levels of technological know-how, and through NAGASE's global logistics network

  Interfacial Consultants

  (IFC)

  Nagase Application Workshop

  (NAW)

  Nagase Bio-Innovation Center

  (NBIC)

  R&D function

  ➡See pages 55-56 for details

  Materials development and process Offering solutions for resin and coating Development of advanced materials innovation that take biotechnology material evaluation and analysis, application and processes, incubation of new

  as their foundation development, and formulation design technologies and businesses

  |

  Implementing Value Creation

  -Reform of Our Profit Structure-

  | NAGASE's Unique Functions |

  NAGASE's Unique Functions

  NAGASE offers a uniqueness only possible through their integration of the functions of Trading, Manufacturing, and R&D.

  45

  Customers

  Domestic, overseas users

Trading

Manufacturing

R&D

Functional Materials Segment

Executive officer

Speciality Chemicals Dept.

GM, Speciality Chemicals Department Kenichi Kurimoto

Trading

Manufacturing

R&D

Advanced Materials & Processing Segment

Polymer Global Account Dept.

GM, Polymer Global Account Department Koji Yoshida

Final products in people's lives

Examples of products and services contributing to solving societal

Final products in people's lives Examples of products and services contributing to solving societal and customer issues

• • Raw materials for semiconductors used in generative AI servers

  • Raw materials for 3D printers inks

  • Raw materials for oils used in the manufacture and processing of textile fibers, metal car parts, etc.

  • Polymer filters used in EV battery components

    and customer issues

• Environmental solutions: Managing operation and reducing the costs of factory wastewater treatment

• Flow synthesis: Improving the safety, working environment, and production efficiency of organic synthesis reactions using batch methods

• Semiconductor business proposals: to deal with mitigating geopolitical risks in raw chemical material procurement (multiple sourcing and contract manufacturing)

  • Office equipment

  • Smart devices

  • Cosmetics containers

• Laptop computers

• Game consoles

• Food packaging

  • A post-consumer recycle that contributes to a circular society

  • Biomass-derived plastics which contribute to a carbon-neutral society

  • PFAS* alternatives that contribute to human and environmental safety

    *Per- and polyfluoroalkyl substances: A general term for synthetic chemicals primarily composed of carbon and fluorine with water and oil repelling properties.

    Results ROIC-focused management

    Building a system for monitoring ROIC improvement

    We worked to promote ROIC-focused management, and were especially particular about our results. We established a new planning office to conduct organization-wide monitoring of three themes: (1) pursing profits commensurate with functionality, (2) reorganizing unprofitable businesses, and

    
    
    

    (3) reducing long-term inventory. As a result, we were able to make significant improvements in each area. In fiscal 2025, in addition to continuing this monitoring, we will also aim to maintain close communication with our consolidated subsidiaries and promote improvement activities as a unified Group. As an extension of ROIC-focused management, we will advance initiatives aimed at improving the productivity of each and every employee. More specifically, we have begun work to revise our business department's internal education system and make operational efficiency improvements utilizing tools such as generative AI and RPA. As a measure to address last year's issue, "evolution of our business models," we developed five-year growth scenarios for each of our businesses. In our trading business, we spelled out the direction that the semiconductor-related business will take globally, and expanded its resources. In our manufacturing business, we formulated a growth strategy together with Group companies, and are currently turning the PDCA cycle.

    Challenges Develop Human Resources

    Building an organization capable of recognizing individual and organizational issues and taking action

    Our business department is working to build a framework that allows employees to recognize individual and organizational issues and encourages their continuous self-driven growth. We began implementing new initiatives in fiscal 2024, and have created a variety of venues where employees can discuss issues, including dialogue meetings with general managers. One of the concrete measures to address issues we are trialing is a buddy system for our younger employees. Another is an award system aimed at boosting motivation and fostering healthy competition between organizations. We will also create a framework for employee skill development by using external training programs and other means to systematize their acquisition of the basic knowledge needed by business professionals.

    Utilization of digital technology × speedier management

    Results

    Enhancing decision-making processes with digital infrastructure

    As manufacturing grows increasingly diverse on a global scale, we may be entering an age where businesses can no longer survive by relying solely on the experience and intuition of their sales reps. This sense of impending crisis has driven us to create a framework for leveraging digital technology in management decision-making. We are now utilizing it to make decisions and revise our growth strategies based on analysis of sales performance data, customer trends, economic forecasts, etc. To be more specific, our newly launched system is being used to achieve more detailed understandings of the profit structures of business attributes that are complicated to categorize because they span national and regional borders. As a result, we are now able to implement management strategies and allocate personnel in response to changes in market trends. Such multi-axis, multi-faceted analyses are steadily contributing to improved profitability. Moving forward, we will continue to leverage digital infrastructure to maximize ROIC and sustainably enhance business value.

    Successor development and human resource development

    Challenges

    Responding to global consolidation by strengthening our human resource strategy and regional collaboration

    Industries are increasingly consolidating around major suppliers, while supply chains are becoming increasingly diverse and multipolar. As these processes accelerate, we feel that the traditional Japan-led management structure and Japanese management models are reaching their limits. Keeping a pulse on and correctly responding to the global trend of industry consolidation requires developing human resources with a business integration perspective and building a human resource network. For example, we expect the Indian market to see significant growth, and believe it is important to win the business of Taiwanese and Chinese companies that are transferred to India, especially from China. For this reason, we established NAGASE WAHLEE INDIA in June 2025. Going forward,

    
    
    

    the implementation of growth strategies for the department's business in India will be led by local staff in Taiwan in collaboration with Taiwan, China, and ASEAN countries.

    47

    NAGASE has solutions

    Customer's voices

    Ishikawa Jyushi Co., Ltd. 48

    NAGASE has solutions

    Customer's voices SANKO SEIKA Co., Ltd.

    NAGASE shows great potential as a partner for tackling management issues

    In 2024, we declared our commitment to implementing initiatives aimed at realizing a sustainable society as a company rooted in food and health. At the time, one our biggest challenges was our need to cut the cost of our wastewater treatment facilities while also keeping their greenhouse gas emissions low and reducing waste. This is when we received a proposal from NAGASE regarding the introduction of turbo blowers and sludge dehydrator machines, as well as the optimization of their operational management methods. As a result of testing, we cut power consumption by more than 30% while reducing and stabilizing the moisture content of the dehydrated cake,

    Yuma Nagaoka

    SANKO SEIKA Co., Ltd.

    Director, Production Section, Production Division

    resulting in reduced wastewater treatment costs. During this time, I was

    reassured by the prompt service of NAGASE's representatives, as well their

    "Yuki no Yado" crackers

    made by SANKO SEIKA

    willingness to engage in discussion, their wide range of capabilities, and their wealth of ideas. We look forward to having a long relationship

    with NAGASE as partners we can grow with as we expand our business, improve operational efficiency, and address environmental issues.

    
    
    

    NAGASE Integrated Report 2025

    Developing new products with NAGASE's all-in-one resin solution

    Through our tableware brand ARAS, we have pursued the concepts of strength, beauty, and form and a value of years and years of use. As part of these efforts, we were searching for new materials that met our high requirements in terms of physical properties and moldability. This search was greatly aided by NAGASE's substantial material proposal capabilities, the rapid formulation design

    capabilities of the engineers at Nagase Application Workshop, and their ability to flexibly develop materials using prototype equipment. During the material selection stage, NAGASE provided us with suggestions for compounds. They then provided us with all-in-one support for everything from resin formulation design and prototyping to physical property evaluation, mass production, and achieving a stable supply of products. As a result, we were able to go from development to

    NAGASE Integrated Report 2025

    Tsutomu Ishikawa

    COO

    Ishikawa Jyushi Co., Ltd.

    commercialization in a short period of time. We are now offering a lineup of products that combine design with functionality. With deep

    ARAS deep scoop dish and cutlery

    scoop dish, for example, we were able to achieve a weighty and luxurious feel that belies its resin construction, while with our curry spoon, we were able to achieve an ultra-thin 0.5 mm edge. We look forward to continuing to developing more new products with NAGASE in the future.

    Electronics & Energy Segment

    Trading

    Manufacturing

    R&D

    Electronics Dept.

    GM, Electronics Department Kazuyuki Sato

    Trading

    Manufacturing

    R&D

    Electronics & Energy Segment

    Advanced Functional Materials Dept.

    GM, Advanced Functional Materials Department Executive officer Ryuhei Tashima

    
    
    

    Final products in people's lives

    • Semiconductors

    • Smartphones

    • Displays

      Examples of products and services contributing to solving societal and customer issues

    • Materials to achieve low power consumption for use in power semiconductors, and for use in new types of displays

    • Heat dissipation and insulation materials for heat management

      Examples of products

      • Liquid molding compounds (LMC) for advanced semiconductor packaging used in generative AI and smartphones

      • LMC for power semiconductors

      • LMC for mobile devices including smartphones

        Examples of products and services contributing to solving societal and customer issues

      • LMC for advanced semiconductor packaging to increase AI server speed and energy efficiency

      • Chemical solution (developer, stripping agent) recycling business to reduce the environmental impact

        Results

        Growth strategy

        Challenges

        Digital technology + strengthening on-site prowess (global)

        Speeding up management execution

        Accelerating capital investment and personnel

        Building a growth structure by leveraging

        Results

        Growth strategy

        Challenges

        and cultivating human talent

        allocation in line with regional needs

        Last fiscal year, the semiconductor wafer bumping line in Malaysia began operations and contributed to sales. As the focus on semiconductor stacking technology increases, demand for wafer bumping services continues to grow. We will continue to expand our facilities and strengthen our development efforts with the aim of further expanding this business. In terms of our regional strategy, we will promote the allocation of personnel based on market trends in each region. By leveraging our ability to globally respond to the needs of each region, such as by strengthening our marketing structure in the United States, dispatching personnel to India, and seconding overseas subsidiary staff, we aim to solve customers' issues and accelerate their business growth.

        
        
        

        PacTech, the Group company that launched

        digital technology and strengthening our on-site prowess

        Our business department is continuing its focus on the utilization of digital tools. In fiscal 2024, we encouraged the utilization of CRM. In fiscal 2025, we will continue this initiative while also promoting the data utilization and analysis with the aim of facilitating information sharing across organizations. Externally, we plan to utilize MA tools and hold online exhibitions. Our aim is to expand online customer contact points and create opportunities for sustainable business development. In terms of strengthening our on-site prowess, we will strengthen collaboration not only between Japan and overseas locations, but among overseas locations. By establishing a system for rapidly sharing the knowledge cultivated in each region, and strengthening our capabilities centered on our on-site prowess, we will aim to achieve further growth.

        Further contributing to solving customer issues through dialogue and business investment

        In fiscal 2024, sales of liquid molding compounds for advanced semiconductor packaging for generative AI applications grew significantly. Furthermore, we have continued to work with Group manufacturer Nagase ChemteX to propose solutions to various technical issues faced by both domestic and international customers, particularly those arising from the increasing complexity of semiconductor packaging due to Chip-let technology. Ultimately, we were able to realize the mass production of LMCs for next-gen 2.XD packaging.

        
        
        

        In addition, we previously

        established SN Tech as a joint venture to take over the Asian semiconductor developer fluid recycling business of US-based SACHEM, Inc. This will contribute in terms of performance, quality, the environment, and many other aspects. Moving forward, we will strengthen such efforts to

        Growing into an organization and individuals capable of responding to environmental changes

        In the generative AI field where Nagase ChemteX's liquid molding compounds for semiconductors are used, the environment surrounding the semiconductor market is constantly changing due to the growth of the data center market, as well as the impact of the Trump administration in the United States. As a result, our businesses are required to make management decisions more quickly than ever before. In fiscal 2024, our business department further strengthened its human resources, made an all-hands effort to identify potential issues for customers in the market, and strove to provide customers with products and solutions tailored to their pre-, intermediate, and post- processes in a timely manner.

        Our aim this fiscal year will be to continue making significant contributions to the full value chain of the semiconductor industry by leveraging the extremely high technology capabilities of our manufacturing function, as well as the sales capabilities of our trading function, which come from the high value-added information we provide.

        our wafer bumping line in Malaysia

        NAGASE Integrated Report 2025

        49

        
        
        

        NAGASE has solutions

        Employee's voice

        Semiconductor developer fluid (tetramethyl ammonium hydroxide) storage tank

        contribute to the growth of the

        semiconductor industry. 50

        NAGASE has solutions

        Customer's voices SACHEM, Inc.

        A reliable partner entrusted with the future

        In pursuit of further growth in our semiconductor chemical business, we have sold all our Asian operations-including our advanced factory in China-to Nagase. This decision followed extensive discussions, and reflects our trust in NAGASE, our long-standing partner and the only company with whom we have established a joint venture. By combining our DNA and technologies, we expect the entrusted Asian business to evolve further and reinforce leadership in the semiconductor industry.

        NAGASE's unmatched technical expertise and global network enable swift responses to change, and we

        look forward to continuing our strong collaboration in other regions as well. John Mooney

        CEO

        SACHEM, Inc.

        
        
        

        NAGASE Integrated Report 2025

        Supporting global procurement in the semiconductor field on assignment to Japan

        I am currently working in Kumamoto Prefecture on behalf of NAGASE's Taiwanese subsidiary to build a structure for Taiwanese suppliers to do business with Japanese semiconductor-related customers.

        Taiwanese suppliers have often encountered difficulties when expanding into Japan, such as dealing with import/export procedures, handling chemicals, and differences in business practices. This is why NAGASE leverages its industry and material handling knowledge, its hazardous material and high-pressure gas licenses, and its regulatory compliance know-how to guide these suppliers to success in the Japanese market. We receive many direct consultations from customers, and we handle each of them with the comprehensive capabilities we have cultivated through our long history as a chemical trading company, our extensive network, and our strong desire to solve customers' problems. I believe this last element, above all, is what has earned it the reputation that "NAGASE has solutions!"

        Jack Lee

        Nagase (Taiwan) Co., Ltd.

        Trading

        Manufacturing

        R&D

        Mobility Segment

        Mobility Solutions Dept.

        Executive Officer

        GM, Mobility Solutions Department Daiji Matsuoka

        Trading

        Manufacturing

        R&D

        Life & Healthcare Segment

        Executive Officer

        Life & Healthcare Products Dept.

        GM, Life & Healthcare Products Department Kenji Okino

        
        
        

        Final products in people's lives

        Examples of products and services contributing to solving societal and customer issues

        Final products in people's lives

        Examples of products and services contributing to solving societal and

      • Automobiles

      • Motorcycles

      • Rolling stock

  • Construction equipment

  • Agricultural machinery

  • Shift to xEVs: Batteries, inverters, and motor components for the electrification of vehicles

  • Environmental compliance: Recycled, bio-derived, and other low environmental impact materials

  • Fuel economy: Weight-reducing technologies for automotive components

    • Food

    • Pharmaceuticals

    • Diagnostic reagents

• Cosmetics and other consumer products relating to daily living and health

  customer issues

  • Stable procurement and supply of raw materials, quality risks management, inventory and manufacturer management (auditing, etc.)

  • Proposal of biotech-based alternative materials

Results Effective utilization of digital technology

Challenges ROIC-focused management

Results Organizational restructuring

Challenges

Cross-functionality

Strengthening communications through the NAGASE Mobility solution brand

While our business department handles a wide variety of products, including electric vehicle components and sustainable materials, we are sometimes perceived as a trading company that handles a limited range of products, particularly overseas. To remedy this issue, we established the NAGASE Mobility solution brand. We aim to expand our recognition by customers as a partner capable of providing advanced solutions that integrate diverse technologies, products, and networks, ultimately making customers think "NAGASE has solutions!" when they face challenges. As for fiscal 2024's issue of effective utilization of digital technology, we have launched an email newsletter, developed a multilingual version of our website, and begun utilizing social media in an effort to strengthen our communications. We will deliver value to many customers in multiple languages and

ROIC-focused management through inventory optimization

We are advancing multifaceted initiatives towards achieving sustainable profitability and capital efficiency. This includes reviewing and revising low-margin businesses, building an order management system, and conducting training on the utilization of generative AI. As part of these efforts, we have been focusing on reducing inventory since fiscal 2024 with an aim of improving ROIC, launching a Project for Inventory Optimization (PIO) directly supervised by the General Manager. We have also begun work to establish systems for managing inventory and ordering on a global scale. We have set goals for the end of fiscal 2025 of having zero dead stock, minimizing long-term inventory, and optimizing inventory levels. By reducing long-term inventory levels at an early juncture through careful monitoring, and by creating clear ordering rules for each unit, we are working to achieve healthy and efficient

Organizational structure and key initiatives for strengthening global expansion

To increase the sophistication and enhance the expertise of our business, we have established new specialized organizations such as Nagase Viita within our Group's functional organizations. In the biotechnology area, we strengthened our research and manufacturing functions, and are currently preparing to take ergothioneine and low-endotoxin products to market. As for fiscal 2024's issue of "expansion of our overseas business," we conducted a Japan-led survey of suppliers and acquired new commercial rights. Our local subsidiaries collaborated with distributors to transition to a basket-based sales approach of combining multiple solutions into a single proposal. In fiscal 2025, we will focus on expanding into Southeast Asia as a priority area.

We are also working to strengthen our regulatory compliance

efforts by verifying the structures and systems of local subsidiaries,

Transition to a functional organization and strengthening cross-functional collaboration

Our traditional vertically integrated organization limited business growth and global collaboration. Considering such issues, we are currently transitioning to a cross-functional structure that spans business departments and locations. By using a matrix-style organizational design, we are building a framework that prevents functional silos and promotes collaboration. We expect functional organizations will be particularly effective overseas, where our human resources are limited. At the same time, we are also working to change mindsets and revise how work is done, striving to achieve a gradual dissemination. In the future, we will establish, share, and standardize systems while at the same time developing practical human resources and building an organization that is both up to the task of handling global M&A and developing new products.

through multiple channels.

inventory levels.

and by raising internal compliance awareness. Moving forward, we will also proceed with the verification of in vitro diagnostic

United Kingdom

France Germany

China India Thailand

Malaysia

South Korea

Japan

Philippines Vietnam

United States Mexico

NAGASE Mobility logo Official website Official LinkedIn page

(IVD) assay kits, in addition to pharmaceuticals and food.

51

Singapore

Indonesia

Brazil

52

NAGASE Integrated Report 2025

NAGASE has solutions

NAGASE Integrated Report 2025

Employee's voice

NAGASE has solutions

Customer's voices

JAE Electronics India Pvt. Ltd.

Building a global procurement system to support the stable supply

The next stage of JAE and NAGASE's ventures in the growing Indian market

JAE Electronics India Pvt. Ltd. (JAE India) is a joint venture established in 2025 by Japan Aviation Electronics Industry, Ltd. (JAE) and NAGASE. The company has begun selling automotive and motorcycle connectors in India. JAE highly evaluated NAGASE's insights about the Indian market, its extensive network, and its business infrastructure, including its warehousing function, leading to the decision to work together. Currently, JAE handles design, quality assurance, and production management, while NAGASE handles sales, procurement, and logistics, creating a structure that combines the strengths of both companies. Moving forward, we will also

Yuji Muroga

President, JAE Electronics

of raw pharmaceutical materials

Following the COVID-19 pandemic, the need for a stable supply of raw pharmaceutical materials is higher than ever, leading to more and more manufacturers seeking to secure multiple sources in addition to their traditional suppliers. There is also an increased demand for the procurement of more cost-competitive raw materials in the domestic market, which is affected by Japan's drug pricing system. To address these challenges, we are focusing on India as its biggest source of raw materials after China. While Indian products excel in terms of price and production capacity, issues with quality and delivery times are not uncommon due to differences in culture and business practices. In order to mitigate such risks, we are collaborating with our Indian subsidiary to build a system for reliable communication and procurement. At the same time, we are

Shuhei Tanaka

Life & Healthcare Products Dept.

work to expand our local production systems and strengthen our supply chain, aiming for further growth. In the rapidly evolving Indian market, NAGASE's promptness and operational reliability provide invaluable support for our company. Through this powerful partnership, we will continue to strive to create new value in India.

India Pvt. Ltd.

helping customers achieve both stable procurement and cost optimization by leveraging the NAGASE Group's global network to swiftly consolidate supply information gathered from exhibitions and business partners worldwide, collaborate with local staff in each country who understand the Japanese market, and provide flexible and speedy procurement proposals.

Trading

Manufacturing

R&D

Manufacturing Function

Nagase ChemteX Corporation (NCX)

Representative Director, President Yoshiyuki Morita

Prinova Group LLC

Chairman, President and CEO Masaya Ikemoto

Company overview

Established: 1970

Location: Osaka City, Osaka Prefecture Net sales: approx. 25.8 billion yen Employees: approx. 520

Business overview

As the core manufacturing function of the NAGASE Group, we provide high-performance chemical products in fields ranging as far from electronics (including advanced semiconductors) to life sciences. Building upon our core technologies in chemical synthesis, formulation design, processing, and evaluation, we leverage our creativity to deepen and integrate our technologies and create innovative products that meet market needs.

Company overview

Established: 1978

Location: Illinois (United States) Net sales: approx. 199.6 billion yen Employees: 1,370

Business overview

The Prinova Group is in the business of selling vitamins and other food ingredients and manufacturing compounds, with a focus on Europe and North America. We also handle contract manufacturing of finished products for the markets including the sports nutrition market and the life & wellness market. We aim to achieve further growth by leveraging strengths that include the world's largest handling volume of food ingredients, our R&D capabilities, and our customer network.

A management approach that maximally leverages resources and flexibly responds to change Pursuing sustainable growth by leveraging our extensive product knowledge and R&D capabilities

©iStock

©iStock

Building on our chemical products business, we are working to cultivate new pillars of growth by focusing on the cutting-edge semiconductor field and by advancing R&D in areas such as life sciences and agriculture. Our entire company is committed to reducing the impact on the environment through, among other things, the development of products such as biodegradable superabsorbent polymers (SAPs) and easily dismantlable

adhesives, as well as the improvement of our manufacturing processes. In this way, we seek to become a chemical company that is kind to both people and the plant. Following the consolidation of the NAGASE Group's chemical businesses into our company, we will promote a robust yet flexible management approach that gives us the ability to flexibly adapt to change and transform it into opportunity. We will do this by maximally

leveraging all of our diverse management resources-including our technologies, expertise, facilities, and human resources-to achieve high operational efficiency.

Prinova is responding to rapid market changes by leveraging strengths such as its extensive product knowledge, vertically integrated business model, and its ability to co-develop solutions tailored to the needs of customers. In fiscal 2025, we will be placing an even greater emphasis on ROIC to enhance profitability

and strengthen our business resilience. By maintaining stable supply, aiming to provide innovative solutions that anticipate future consumer needs, collaborating with the NAGASE Group, investing in human resources and technology, and engaging in partnerships with suppliers, we will pursue sustainable growth.

Molding compounds (liquid and

sheet), photolithography materials

Biodegradable SAP, low endotoxin

materials, soil amendments

Special epoxy compounds,

conductive coatings

Nagase Viita Co., Ltd.

Representative Director and President Takahiko Mandai

Advanced semiconductors

Life sciences and agriculture

Chemical products

Utah Plant in the United States

Solution development

Contract manufacturing of end products for the sports nutrition market

Nagase RooTAC Industries, Inc.

President Toshihiro Nakanishi

Company overview

Established: 1932

Location: Okayama City, Okayama Prefecture

NAGASE Integrated Report 2025

53 Net sales: approx. 35 billion yen Employees: approx. 800

Business overview

We are the core biotechnology company of the NAGASE Group. Originally Hayashibara Co., Ltd., our name was changed to Nagase Viita, Co., Ltd. in April 2024. We develop and manufacture bio-derived multi-functional materials by leveraging the enzyme and fermentation technologies we have cultivated since our founding in1883, providing products and solutions for markets ranging as far from food and pharmaceutics to personal care and agriculture.

Company overview

Established: 1952

Location: Osaka City, Osaka Prefecture Net sales: approx. 12.5 billion yen Employees: 400

Business overview

We manufacture and sell plastic flexible hoses, pipes, and other related products including

industrial hose, protective conduit for electrical, power, and communications cables, collecting and 54

drainage pipe for civil engineering applications, and bridge-related materials. We also contribute to

NAGASE Integrated Report 2025

the National Resilience Plan through infrastructure-supporting products such as built-in hoses for semiconductor manufacturing equipment, underground piping for utility pole elimination projects,

Realizing a sustainable society with technologies that leverage microorganisms and enzymes

and large-diameter pipes for heavy rain and flood countermeasures.

We leverage the power of microorganisms and enzymes to

purpose to "respect life, and embrace the well-being of people

Continuing to be a manufacturer that supports people, society, and community building with unique new technologies

provide functional materials. We handle the whole process from R&D to manufacturing and sales entirely in-house. We have earned high trust from society through our rigorous focus on quality, safety, and the environment. In 2024, we achieved the platinum rating in the EcoVadis sustainability assessment for the second year in a row. In fiscal 2025, we will strive to enhance the value of existing products such as trehalose and AA2G™, which both reached their 30th year in the market, while also investing in the development of new materials, with a focus on personal care.

and the planet," we will accelerate the growth of our business through the dual engines of manufacturing and value creation, which each turn on our technological capabilities.

We are a specialized manufacturer of industrial hoses and plastic pipes that has been in business for over 70 years. Remaining steadfast as a pioneer, and adhering to a fundamental principle of "earning customer satisfaction and trust through manufacturing that prioritizes quality above all else," we handle everything from material research to the design of manufacturing equipment entirely in-house. We see our mission as supporting people, society, and community building through high-quality products. In November 2025, our

trusted Totaku brand and support connecting, protecting, and developing people and society. We will continue to focus on creating safe, pleasant, and fulfilling work places while maintaining our position as a leading company in pipes and hoses with world-class technology.

To achieve our goal, we will build a stronger organizational foundation by enhancing collaboration among our production, research, and business departments, while pursuing swift business development. With an aim to embody our stated

Food Ingredients TREHA™, PULLULAN, DENABAKE™ EXTRA

Personal care Ingredients AA2G™, Lissenare™, Glucosyl Naringin

Pharmaceutical Ingredients

SOLBIOTE™ (TREHALOSE SG, MALTOSE PH, SUCROSE SG)

name was changed to Nagase RooTAC Industries, Inc. as we

entered a new stage of growth as part of the NAGASE Group's manufacturing division. We look forward to leveraging the NAGASE's global network as we continue to build upon the

Electrical conduit Underground

drainage pipe

Industrial hose

Trading

Manufacturing

R&D

R&D Function

Nagase Application Workshop (NAW)

General Manager Akihiro Taniguchi

Nagase Bio-Innovation Center (NBIC)

Executive Officer and General Manager Xiaoli Liu

Location overview

Established: 2007

Location: Amagasaki City, Hyogo Prefecture

Functions: We support innovation in the fields of plastics, coatings, and 3D printing, evaluate and analyze unique new technologies and materials, develop formulations, and explore new applications.

Location overview

Established: 1990

Location: Kobe City, Hyogo Prefecture

Functions: Develop unique technologies, initiate and develop new ingredients, scout and evaluate external technologies

Creating innovation in the fields of plastics, coatings, and 3D printing Shaping the future with biotechnology as an innovation hub for sustainable ingredients

We are an open innovation lab with the sort of free-thinking approach you should expect of a research institute operated by a trading company. Our strength lies in our technical staff, who have extensive development experience in the plastics, resins, and coating fields. We turn free-thinking ideas into solutions for customers' issues. In recent years, we have been focusing particularly on themes aimed at solving

environmental issues. In order to meet the need for interdisciplinary fusion of technologies, such as that between resin materials and biotechnology, we will work to expand the areas we are capable of handling. As the lab closest to users, and as customers' development partner, we leverage the NAGASE network to propose "One NAGASE" solutions that bring Group's technologies together.

NBIC continuously produces the seeds of next-gen ingredients that leverage biotechnology to contribute to longer healthspans and the realization of a low-carbon, circular economy. We uncover latent needs through dialogue with the market, and then leverage our unique technology platform to meet those needs by creating ingredients from the ground up. Our

philosophy is "Unavailable Made Available & Sustainable." In addition to enhancing our R&D efficiency through collaboration both within and outside the Group, we support its existing businesses with unique techniques that have a competitive edge. Furthermore, we will create new business opportunities and contribute to the growth of the Group's overall biotechnology business.

The NAW × IFC collaboration framework

Taking cue from the keywords Open, Collaborative, and Speed, we are working to enhance our ability to propose solutions to clients by incorporating the unique development methodologies and ideas of Interfacial Consultants (IFC), one of our Group companies. We also seek to bring together all the technologies the Group has in its possession, thereby expanding the fields for which we can provide proposals. By combining the power of NAW's technological development with the marketing skills of our sales department, NAGASE provides the sort of comprehensive support that only it can, covering everything from new material development to marketing.

Creating New Value

Technological NAW Development

Function

IFC

Incubation

Function

NAGASE

Group Marketing

Interfacial Consultants LLC (IFC)

CEO Jeffrey Cernohous

NAW Development Projects

Collaboration with IFC

We are leveraging the properties of AquaSys®, the

water-soluble support material developed by IFC for the 3D printing market, to develop a new application for it as a sacrificial layer.

Developing environmentally and people-friendly materials Working with our partner companies, we are tackling challenges such as developing formulations and applications that use marine-degradable resins, proposing alternatives to fluorinated compounds for food packaging materials, and

developing coating materials utilizing silica aerogel.

NBIC Development Projects

Green Catalysts

Aiming to contribute to a circular society, we are working to develop laccases, a category of environmentally friendly enzymes regarded as Green Catalysts. They catalyze the redox reactions that occur in paper bleaching and biofuel cells and are expected to have wide-ranging applications. NBIC is working to develop diverse laccases with unique characteristics that allow them to function under a wide range of temperature and pH conditions. We will accelerate their development into marketable products in collaboration with Life & Healthcare Products Department and subsidiary Nagase (Europa) GmbH.

Enzymes that enrich our food experience

Over many years of work, we developed N-STePPTM, a unique technology platform for producing materials using streptomyces bacteria in collaboration with Nagase Viita. We are leveraging this platform to enhance the taste and texture of food, reduce food waste, and advance R&D of various new products that meet the diverse needs of consumers. By working closely with our sales departments and the Group's overseas locations to expand the potential of enzymes, we will provide new value for the future of food.

Initiatives of the Nagase Biotech Office (NBT)

Creating new value by bringing together the Group's biotechnologies

The mission of the NBT is to promote the creation of sustainable businesses by bringing the Group's biotechnologies together.

As part of this effort, we are advancing projects that integrate the respective fundamental research being conducted by NBIC and Nagase Viita, to create new materials and expand into new application fields centered on enzymes, enzymatic reactions, and fermentation, thereby leading to new business opportunities. We are also engaging in open innovation with external partners with an aim of creating new businesses. Moving forward, we look to expand the Group's technological base through personnel and technological exchanges

with Nagase Diagnostics, which joined the Group in July 2025.

Toshio Kondo

Nagase Biotech Office Manager

Solutions

Customer and Market Needs

NAGASE Integrated Report 2025

55 56

NAGASE Integrated Report 2025

Company overview

Established: 2014

Location: Wisconsin (United States)

Functions: Development of advanced materials and processes, incubation of new technologies and businesses

Building the future with a "NAGASE ONLY" strategy

One of NAGASE Group's strengths is creating value by matching partners' technologies and products worldwide with customer needs. At the same time, new technologies like artificial intelligence (AI) have simplified complex information and relationships, making them easily accessible. This brings both a serious threat and a great opportunity. We may become less valuable to partners, yet

rapid technological change enables us to develop unique business models, technologies, and products that deliver highly distinctive "NAGASE ONLY" solutions. By increasing development speed and focusing on commercialization through global sales channels, we can accelerate growth, profitability, and sustainability. IFC looks forward to working with everyone at NAGASE to turn this challenge into success.

From the Front Lines of Combining Functions to a Sustainable Society

We present here examples of NAGASE Group initiatives, which combine our trading, manufacturing, and R&D functions to take on customer challenges and address societal challenges.

An aging society Circular economy

Toward closed loop recycling of disposable diapers with bio-based super-absorbent polymers (SAP)

Considering that used disposable diapers generate CO2 when incinerated as waste and are made with petroleum-derived materials that have an environmental impact, NAGASE, Nagase Viita, and Nagase ChemteX have collaborated to create a bio-based super-absorbent polymer (SAP) made from starch.

As part of recycling initiatives for sanitary product materials such as disposable diapers that make use of SAP, Nagase ChemteX has been verifying the

separation and recycling processes, while NAGASE

Food Loss

Prinova has started supplying a premix product to a nationwide US convenience store chain

Prinova has begun supplying bakery premix products to a major US convenience store chain. The premix is a proprietary blend proposed by Prinova that used Nagase Viita's functional ingredients to improve the texture and extend the shelf life of bakery products.

These products have excellent freeze-thaw resistance, which contributes to reduced food waste and lower operating costs.

Manufacturing

I worked hard to gather information about material characteristics and production systems. Doing it speedily was a major challenge. Stabilized plant operations are needed to deal with increased shipping volumes, so we worked together with various departments to increase the speed of the response. Going forward, we would like to deepen collaboration within the Group to expand sales and ensure stable supply while also pursuing the development of other materials that will create new value.

Manufacturing and R&D

As the chef for the new business development department, I developed SOFT TEX, a bakery blend that uses ingredients from Nagase Viita. We are currently building a foundation to expand business in the bakery sector and other areas.

Masatoshi Shiojiri

Sales Development Department, Bio Chemicals Division Nagase Viita Co., Ltd.

Mark Susz

New Business Development, Ingredients

collaborates with government bodies, municipalities, industrial waste processors, and nursing care facilities to establish recycling systems. Our SAP is biodegradable and is not only highly absorbent but

PFAS regulations Less plastic

Development of eco-friendly pulp molds that comply with PFAS regulations

Prinova Group LLC

also easily decomposes, which facilitates the previously difficult separation of post-use SAP from other materials for disposable diapers. This makes recycling easier, contributing to resource circulation, and should reduce CO2 emissions by decreasing the amount of waste from used disposable diapers, etc.

Paper pulp molds are in the spotlight in response to stricter regulations on per-and polyfluoroalkyl substances (PFAS). However, the molds are vulnerable to water, oil, and friction. To address these vulnerabilities, NAGASE collaborated with pulp mold manufacturers and subsidiary Nagase Chemical to consider over 1,000 formulations at the Nagase Application Workshop (NAW). We have successfully commercialized a PFAS-free product that is

NAGASE Integrated Report 2025

57 Trading

We are working to build a recycling system for diapers that use biodegradable SAP. We are holding ongoing discussions connecting government, municipalities, industrial waste disposal companies, and nursing care facilities. Ordinances and

Koji Uenaka

Green Materials Section, Product Development Division, Functional Materials Department

Nagase ChemteX Corporation

Manufacturing

I develop and explore applications for biodegradable SAPs. We are currently investigating methods to clean disposable

PFAS-free molded paper cup

Manufacturing

We were in uncharted territory with paper and pulp molding, so we built testing methods and evaluation criteria from scratch before

water-, oil-, and abrasion-resistant.

Trading

Leveraging the Group's extensive 58

NAGASE Integrated Report 2025

network of business partners meant that we were able to quickly arrange consultations and get additional samples even when the prototyping process had some difficulties, which was a significant help for this project.

standards differ by municipality, as does the level of enthusiasm for recycling, so we visit localities for repeated discussions with the various stakeholders. There are still many challenges to realizing a resource-recycling society, and there have only been limited number of cases where monetization has been achieved. Going forward, we aim to build a recycling system in which all involved parties can benefit and contribute to a circular society.

Kaiyou Kitakoshi

Total Solution Office, Performance Chemicals Department

Nagase & Co., Ltd.

diapers and pads with biodegradable SAPs

with an eye toward recycling. We have been steadily conducting tests and making improvements with the aim of achieving both clean washing technology and environmentally friendly wastewater from this process. We hope to change the image of recycled products as being expensive, making them a more familiar and sustainable option for society.

proceeding with formulation design. Optimizing chemical combinations and mixing ratios for internal addition to the pulp slurry in order to enhance performance proved particularly difficult, but the advice of NAW's engineers with their extensive testing experience and their measurement and analysis equipment proved to be a great help. We will expand the technology gained from this project into even more diverse applications in order to contribute to a sustainable society.

Masashi Hachida

Coating Technological Development Section, Nagase Application Workshop (NAW)

Nagase & Co., Ltd.

Yasuaki Yoshida

Market Development Team, Product Management Section and Functional Color Materials Division, Coating Materials Division, Performance Chemicals Department

Nagase & Co., Ltd.

We were also able to rapidly move forward with development with Nagase Chemical's specialized facilities and expertise in the paper sector together with NAW's analysis using their extensive testing and analytical equipment. We were able to reaffirm the strengths of the NAGASE Group through collaboration with NAW and Nagase Chemical.