Nihon Nohyaku : Integrated Report 2025

Integrated Report 2025

ss Plan (Annual)" to realize said "Vision." The Group ackbone that supports everything from the Basic shown in diagram below). At NICHINO Group, we will well as the management policy and business plan

alization of a sustainable society.

NICHINO Group's philosophy structure consists of the "Basic Principles," which express the Group's raison d'être and mission; the "Values" that the Group cherishes in order to embody the "Basic Principles"; the "Vision," which expresses the Group's ideal business model for the future; as well as the "Medium-Term Management Plan" and "Management Policy and Busine

has positioned the "Sustainability Basic Policy" as the b Principles to the Management Policy and Business Plan ( steadily promote our medium-term management plan as based on this philosophy structure to contribute to the re

Philosophy Structure

Basic Principles

Values

Value Creation at Nihon Nohyaku

NICHINO Group's most important value is "to provide customer satisfaction and contribute to society" by leveraging its unique strengths. These strengths are our "unique technology," our orientation toward "globalization & localization," and our "entrepreneurship." Moreover, we believe that the source of this value lies in our human resources, and we have shared our ideal image for human resources as "Nichino Human Capital Value." We are implementing measures to develop human resources and foster a good corporate culture.

Sustainability Basic Policy

Based on NICHINO Group Basic Principles, we will contribute to the realization of a sustainable society by continuously taking on the challenge of ensuring a steady food supply through innovative technologies and protecting rich lifestyles and the environment.

Basic Principl

es

on)

Customer Satisfaction and Social Contributions

Unique Technology

Globalization & Localization

Entrepreneurship

Nichino HC* Values

Sense of ownership

Taking action!

Team player Contributing to the team!

Enjoy my job Enjoying growth through work!

About Nihon Nohyaku

(Purpose and missi

Values

Sustainability of Nihon Nohyaku

Vision

ment Plan

siness Plan

Medium-Term Manage

Management Policy and Bu

(Annual)

NICHINO Group Action Charter

Vision

At NICHINO Group, we aim to be unique, with a business scale among the top 10 in the global agrochemical market. We strive to be a company that can ensure the world's food supply and protect quality of life through creation, contributing to the realization of a sustainable society.

*Human Capital

Contribution Social contribution

Creation

Creation

Earnings Earnings improvement

Data Section

01 NIHON NOHYAKU CO., LTD. Integrated Report 2025 02

Editorial Policy (On the Publication of the Integrated Report)

About Nihon Nohyaku

This year, FY2025, NICHINO Group issues its inaugural Integrated Report. The purpose of this report is to deepen readers' understanding of the Group's efforts to sustainably increase corporate value and its medium-and long-term growth strategy. We aim to promote constructive dialogue with all stakeholders, including shareholders, investors, customers, business partners, local communities, society, and the Group's officers and employees, and to realize effective corporate governance that contributes to sustainable growth and the improvement of corporate value.

In this report, we present the mechanisms for creating corporate value and the priority issues (materiality) for NICHINO Group to address in the pursuit of medium- to long-term corporate growth, under our mission to "contribute to the realization of a sustainable society by ensuring a safe and steady food supply and protecting quality of life." Additionally, in response to the recent increase in requests for information disclosure, we strive to disclose ESG information, including our initiatives regarding the environment and climate change, our approach to human resources, and corporate governance.

For detailed sustainability information, please refer to the sustainability section of our website, and for main ESG data, please refer to the "Sustainability Data Book" on our website.

Online

Sustainability section of our website

https://www.nichino.co.jp/en/csr/index.html

PDF

Sustainability Data Book

https://www.nichino.co.jp/en/csr/csr_report.html

Sustainability of Nihon Nohyaku

This report will help stakeholders gain a deeper insight into NICHINO Group. We will continue to strive to enhance the content of this report and use it to facilitate dialogue with our stakeholders.

Contents

About Nihon Nohyaku

01 Our Values

03 Contents and Editorial Policy

05 History of Value Creation in NICHINO Group

Value Creation at Nihon Nohyaku

07 Commitment of Top Management

13 Value Creation Process

16 Medium-Term Management Plan

19 Growth Strategy

21 Financial Strategy

23 Marketing Strategy

25 R&D Strategy

29 Domestic Agrochemical Business

31 Overseas Agrochemical Business

34 Life Science Products Business

36 Smart Agriculture

38 DX Strategy (Digital Innovation)

39 Human Capital Strategy

Sustainability of Nihon Nohyaku

43 Sustainability Management

47 (Environment) Raising the Level of

Environmental Management

51 (Social) Expansion of Human Rights Management

53 Enhancing the Culture for Safety

Value Creation at Nihon Nohyaku

57 Development of Technologies and Products that Meet the Needs of Society

58 Community Involvement

59 (Governance) Strengthening Corporate and

Organizational Governance

69 (Overall ESG) Expansion of Compliance and

Risk Management

Data Section

72 Company Overview and List of NICHINO Group Companies

73 Stock Information and External Evaluation

75 Financial and Non-financial Highlights

Reporting Period

In principle, the reporting period is from April 2024 to March 2025, but some activities before and after this period are also included in the report.

Scope of the Report

The companies in NICHINO Group, including NIHON NOHYAKU CO., LTD., from April to March the following year.

Note: From January to December for Sipcam Nichino Brasil S.A.

Publication

October 2025

Reference Guidelines

Ministry of Economy, Trade and Industry "Guidance for Integrated Corporate Disclosure and Company-Investor Dialogue for Collaborative Value Creation"

IFRS Foundation "International Integrated Reporting Framework"

ISO 26000:2010 Guidance on social responsibility

Global Reporting Initiative "Sustainability Reporting Standards"

Ministry of the Environment "Environmental Reporting Guidelines 2018"

Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)

Data Section

03 NIHON NOHYAKU CO., LTD. Integrated Report 2025 04

Nihon Nohyaku, the core of NICHINO Group, was established in 1928 as the first crop protection products manufacturer in Japan through a merger of the Agricultural Chemical Department of Asahi Denka Co., Ltd. (now ADEKA Corporation) and Fujii Seiyaku Co., Ltd. During this period, NICHINO Group continued to grow toward achieving a sustainable society, while contributing to safe and stable crop production through its core agrochemical business. The Group now consists of 22 companies, including 10 consolidated companies.

Founding to Early Development Period (1928-1960s)

Social Change to Growth Period (1970s-2000s)

Transition to Expansion Period (2000s-Present)

Business expansion and rapid advancement through the shift to a global growth strategy

Amid the progressive expansion of businesses centered on agrochemicals, Nihon Nohyaku undertook large-scale rationalization measures and M&A activities based on proactive industry restructuring measures. These included business acquisitions from Mitsubishi Chemical Corp. and Tomono Agrica. The success of these endeavors led to the establishment of our corporate vision, "Growing Global to become an outstanding globally competitive group" (2012), and made a major shift toward a global growth strategy. Even under the adverse business conditions of the 1990s, we maintained our medium- to long-term

Promoting sustainability management to improve corporate value

As Japan's first specialized agrochemical manufacturer, Nihon Nohyaku's history mirrors the modern history of the agrochemical business and the agrochemical industry itself. Upholding the historical significance of this journey, NICHINO Group strives to improve corporate value to realize its vision of being a "Global Innovator for Crop & Life." We do this by addressing global challenges, including the stable production and supply of food and efforts for biodiversity and environmental conservation, as well as through our relentless pursuit of technological innovation and stronger global partnerships to achieve these goals. The

Formation of the management philosophy in the agrochemicals business and contribution to the development of the industry

At the time of its founding, Nihon Nohyaku was engaged in the manufacturing and sales of products made from lead arsenate, which was commercialized using by-products from mining and industrial operations within the Furukawa Group. Nihon Nohyaku quickly recognized the importance of testing and research, establishing the Kawachi Disease and Insect Research Farm. A production site was also established with the completion of the Tsukuda Plant (now Osaka Office). Our management philosophy of "ensuring a safe and steady food supply and protecting quality of life" was formed on this pursuit, throughout our history, of business activities based on a scientific perspective. A commitment to academic research has been passed down throughout our history, most notably in the activities of the Research Center, the Group's research and development hub. From today's perspective, our diverse achievements as a pioneer in the formative years of the agrochemicals industry reflect our active commitment to building trust with various stakeholders surrounding our business.

Quick Comment

While the development of the agrochemicals industry has contributed greatly to food production, concerns about its safety began to emerge. As a result, shortly after World War II, the Agricultural Chemicals Regulation Act was enacted,

Transformation into a Research and Development (R&D)-oriented company, demonstrating uniqueness, and pursuing safety

After World War II, domestic agrochemical manufacturers finally commenced discovery research to explore domestically produced active ingredients. Nihon Nohyaku also developed isoprothiolane (FUJI-ONE), the first fungicide for rice developed in-house. It then proceeded to create numerous other major products. The isoprothiolane manufacturing plant was completed in 1978, and Nihon Nohyaku marked its 50th anniversary by transforming into a Research and Development (R&D)-oriented company. Meanwhile, Japan rapidly established various safety-related laws, evaluation agencies, and monitoring systems, in view of the close link between agrochemicals, the environment, and people's diets. Nihon Nohyaku would subsequently be subject to a diverse range of social demands. Far from hampering business activities, this led to an even greater awareness of our commitment to the safety and security of agrochemicals, which has been our focus throughout our history.

Quick Comment

The chemical characteristics and unique properties of isoprothiolane led to the development of selective insecticide buprofezin (APPLAUD) and pharmaceutical antifungal agents like lanoconazole and luliconazole. This

investments in research and development, aiming for technological innovation. This resulted in the continuous development of new agents, including the large-scale insecticide flubendiamide (Phoenix). The steady implementation of our global growth strategy led to the construction of manufacturing sites in India and Brazil, as well as the integration and enhancement of various financial and non-financial strategies and tactics.

Quick Comment

Flubendiamide was the first diamide insecticide ever registered in the world. Because it selectively targets lepidopterous pests, it is an eco-harmonized product from the perspective of biodiversity conservation. Cumulative global sales to date have reached approximately 300 billion yen, including the sales rights licensed to Bayer.

Nichino America, Inc. (Delaware, USA)

2000s were an important period during which the foundations were laid for NICHINO Group's ongoing growth strategy. We present the progress of value creation during this period in detail in the context of the Medium-Term Management Plan, described later (p.16-18).

(billion yen)

170

160

150

Nichino India Pvt. Ltd. (Hyderabad, India)

and the pesticide registration system was established (1948). Lead arsenate became the first agrochemical to have been registered under this system, and numbers one through eight were all Nihon Nohyaku's main products.

Site development

1928 Founded

1930 Kawachi Disease and Insect Research Farm opened in Osaka

was a classic example of Nihon Nohyaku's traditional strengths in research and development-our commitment to originality and entrepreneurial spirit-demonstrated in action.

1974 Nichino Ryokka Co., Ltd. established

1989 Japan House Tech Co., Ltd. (now Nichino Service Co., Ltd.) established

1990 Nihon Ecotech Co., Ltd.

1997 Nichino America, Inc. established in the USA

2005 Shanghai Office opened

2007 Nichino Europe Co., Ltd. established in the UK

2011 Nichino Shanghai Co., Ltd. established

2013 Company Headquarters move from Nihonbashi to Kyobashi in Tokyo

2014 Arysta Life Science AgriMart Co., Ltd. (now AgriMart Corporation) became our wholly owned subsidiary Invested in Sipcam Agro S.A. in Brazil (name changed to

2015 Hyderabad Chemical Ltd. (now Nichino India Pvt. Ltd.) became our consolidated subsidiary

2016 Sipcam Nichino Brasil S.A. became our consolidated subsidiary

2017 Nichino Vietnam Co., Ltd. established in Vietnam

2018 Acquired shares of Adnicol S.A.S. in Colombia (name changed to Nihon Nohyaku Andica S.A.S.)

Capital and business alliance agreement with ADEKA Corporation

2020 Nichino México S. de R.L. de C.V. established as a subsidiary of Nichino America, Inc.

Value Creation at Nihon Nohyaku

About Nihon Nohyaku

140

130

120

1934 Tsukuda Plant (now Osaka Office) completed

Kyushu Business Office (now Fukuoka Branch) opened

Kawachi Disease and Insect Research Farm opened in Osaka

established

1992 London Office opened

1995 Research Center completed New York Office opened

Sipcam Nichino Brasil S.A.)

Nichino do Brasil Agroquímicos Ltda. established

2022 Nichino Korea Co., Ltd. established in South Korea

2023 Interagro (UK) Ltd. became a wholly owned subsidiary of Nichino Europe Co., Ltd.

Net sales exceed 100 billion yen

110

100

1956 Chemical Research Laboratory completed

1959 Company Headquarters moved to Tokyo

1969 Agricultural Chemicals (Malaysia) Sdn. Bhd. established in Malaysia

Products and services

Data Section

Company Headquarters moved to Tokyo

1996 Taiwan Nihon Nohyaku Co., Ltd. established in Taiwan

Sustainability of Nihon Nohyaku

Research Center (Kawachinagano-city, Osaka)

Headquarters (Kyobashi, Tokyo)

Net sales exceed 50 billion yen

Nichino Chile Sociedades por Acciones established in Chile

90

80

70

60

1948 First crop protection products registration:

1975 FUJI-ONE (isoprothiolane) fungicide launched

2002 A portion of Tomono Agrica's business acquired

Mitsubishi Chemical Corp.'s plant protection business acquired

2015 DANIKONG and DOUBLE FACIES (pyflubumide) acaricides

launched 50

lead arsenate

1984 APPLAUD (buprofezin) insecticide

Inherited HACHI-HACHI (tolfenpyrad) insecticide and PYRANICA 2016 NEXUS (termiticide) launched

launched

1985 MONCUT (flutolanil) fungicide launched Malotilate formulation (pharmaceutical) launched

FUJI-ONE (isoprothiolane)

(tebufenpyrad) acaricide

Inherited Z BORDEAUX (basic copper sulfate) fungicide Inherited indanofan herbicide

2003 V-GET (tiadinil) fungicide launched

2018 PARADE (pyraziflumid) fungicide launched

2020 Diagnose Your Crops with AI! app released

Change of fiscal year end

(half-year settlement) 40

Sales trends

(billion yen)

Lead arsenate

Net sales exceed 10 billion yen

1991 DANITRON (fenpyroximate) acaricide launched

1994 Lanoconazole formulation (pharmaceutical) launched

1999 ECOPART (pyraflufen-ethyl) and THUNDERBOLT (pyraflufen-ethyl mixture)

2005 Luliconazole formulation (pharmaceutical)

launched

2007 PHOENIX (flubendiamide) insecticide and pyriprole formulation (animal health product) launched

30

2021 ORCHESTRA (benzpyrimoxan) insecticide launched

20

*Consolidated net sales since 1992

herbicides launched

APPLAUD (buprofezin)

2010 AXEL (metaflumizone) and COLT

(pyrifluquinazon) insecticides launched

PHOENIX (flubendiamide)

Diagnose Your Crops with AI!

10

ORCHESTRA

(benzpyrimoxan)

1960 1970 1980 1990 2000 2010 2020 2024 2030

05 NIHON NOHYAKU CO., LTD. Integrated Report 2025 06

Hiroyuki Iwata

President and Representative Director

About Nihon Nohyaku

Ever since Nihon Nohyaku was founded in 1928 as Japan's first agrochemical manufacturer, we have developed businesses centered on agrochemicals under our corporate philosophy of "ensuring a safe and steady food supply and protecting quality of life." I believe this principle has motivated and guided my own actions many times. The history of Nihon Nohyaku is also a story of deep involvement in the agrochemical industry, laying the foundation for the entire industry during its early years. This included the establishment of production and sales systems, commercialization channels, and quality control frameworks, as well as the dissemination of scientifically-based information. Our pioneering efforts went beyond business activities, promoting recognition of the important social role of agrochemicals.

I believe that agrochemicals are an essential

Sustainability of Nihon Nohyaku

technology for stable and safe food production. As a company, we believe they are fundamentally significant in terms of supporting people's survival and health, as well as underpinning the sustainable activities of society.

We have enhanced the value of agrochemicals through numerous technological innovations. Since shortly after our founding, we have been driven by this sense of mission to focus on the importance of properly evaluating agrochemical performance and safety. We have led the way in establishing evaluation and research systems, such as introducing safe manufacturing facilities and actively incorporating advanced knowledge and technologies from overseas.

Our commitment to trust in scientific knowledge and address social demands, as well as our thorough dedication to safety and security, have remained at the core of our business activities throughout our history. Today, we are channeling this spirit into the creation of our own active ingredients with unique qualities and high safety standards, and present this as our clear, research and development-oriented management policy. It is my responsibility and pride to ensure that this philosophy is faithfully passed on to the next generation.

Value Creation at Nihon Nohyaku

In FY2024, Nihon Nohyaku saw an approximately 3% decrease in revenue amid a 6% decline in the overall global demand for agrochemicals. Despite this underwhelming result, we believe that we put in a relatively solid performance considering the volatility of the overall market.

Data Section

We also secured an increase in profit. Our efforts to reduce costs proved particularly effective, with operating profit reaching 8.5 billion yen. Revisions to the cost

system, including the reduction of chemicals. In this context, our eco-harmonized products are highly valued in the market, and we are enjoying "survivorship benefits" due to the withdrawal of competitors. This result underscores our technological reliability and also contributes to the expansion of our market share.

Meanwhile, in the Indian market, factors such as the monsoon led to rising instability, forcing us to recognize an impairment of goodwill for Nichino India Pvt. Ltd. We

This is the inaugural Integrated Report published by

Nihon Nohyaku Co., Ltd.

We have previously introduced initiatives to address environmental and social issues through disclosures centered on non-financial information, such as our Responsible Care Report and the Sustainability Report. Recent years, especially, have seen an increasingly diverse range of metrics used to measure corporate value. In addition to financial indicators, there has been increasing focus on long-term sustainability and how companies engage with social challenges.

Integrated reports have become an important tool in light of this historical trend. They organically link financial and non-financial information, illustrating the company's current position and its future vision. In this report, we aim to convey, in frank and concrete terms, NICHINO Group's direction and its value creation story.

Personally speaking, the preparation of this Integrated

Report gave me the opportunity to reconsider questions such as "Why do we pursue this business?" and "What value does it bring to society?" I believe that the greatest significance of this report lies in its presentation of information beyond mere numbers, enabling readers to gain a sense of "Nihon Nohyaku's corporate personality." Agriculture is directly connected to "food" and "lifestyles". It supports the foundation of humanity. At the same time, it is an industry with close ties to the natural environment and local communities. In this context, how do we contribute to society, and what kind of future do

we envision?

I hope that this Integrated Report will convey our current position and aspirations.

structure and the optimization of the global sales system, among other structural reforms, are steadily yielding results.

By region, the North American market saw remarkable growth. In the United States, net sales finally exceeded USD 100 million, achieving a long-standing goal for us. This was one of the most moving events for me. It represents the fruits of the North American team's tireless efforts and years of steady trust-building. We also strengthened our presence in the regions formerly covered by the NAFTA, such as Canada and Mexico. In Mexico, specifically, where avocado demand is vigorous, the direct sales system established with the incorporation of a local subsidiary made a positive contribution.

Meanwhile, the regulatory environment remains stringent in the European market. This includes the Farm to Fork strategy, which targets sustainability in the food

responded swiftly and flexibly by overhauling that company's management system, dispatching executives from our head office, and rebuilding the local personnel structure, among other measures. This crisis management capability is also one of Nihon Nohyaku's strengths.

In this way, our recent performance has generally remained stable, but uncertainty is increasing across the industry as a whole. The agrochemicals market is vulnerable to weather conditions and geopolitical risks in any given year, and complex external factors such as the situation in Ukraine, unrest in the Middle East, and constraints on the supply of raw materials may potentially impact our performance.

Our ability to maintain stable performance in the face of this uncertainty is due to the structural reforms we have progressively implemented and our shift toward a

07 NIHON NOHYAKU CO., LTD. Integrated Report 2025 08