FY2024 Annual Securities Report

Annual Securities Report

The 125th Fiscal Year

(From April 1, 2024 to March 31, 2025)

Niterra Co., Ltd.

Annual Securities Report

1. This document is an English translation of the Annual Securities Report ("Yukashoken Hokokusho") pursuant to Article 24, Paragraph 1 of the Financial Instruments and Exchange Act, based on the data submitted via the Electronic Disclosure Investors' NETwork ("EDINET") as set forth in Article 27-30-2 of the same. This translation includes a table of contents and pagination that were not included in the electronic filing.

2. An English translation of the audit report attached to the Annual Securities Report ("Yukashoken Hokokusho") submitted via the above method has been appended to the end of this document.

Table of Contents

Page

Annual Securities Report for the 125th Fiscal Year

[Cover] 1

Part I [Information on the Company] 2

1. [Overview of the Company] 2

   1. [Trends in key management indicators, etc.] 2

   2. [History] 4

   3. [Description of business] 6

   4. [Subsidiaries and associates] 8

   5. [Employees] 11

2. [Business Overview] 13

   1. [Management policy, management environment, and issues to be addressed, etc.] 13

   2. [Concept and initiatives regarding sustainability] 17

   3. [Business and other risks] 32

   4. [Management's analysis of financial position, business performance, and cash flows] 36

   5. [Significant contracts, etc.] 41

   6. [Research and development activities] 41

3. [Equipment and Facilities] 43

   1. [Overview of capital investment, etc.] 43

   2. [Principal equipment and facilities] 43

   3. [Plans for the new establishment, retirement, etc., of facilities] 45

   4. [Status of Niterra Co., Ltd.] 46

      1. [Status of shares, etc.] 46

      2. [Acquisition of treasury stock, etc.] 50

      3. [Dividend policy] 51

      4. [Corporate governance, etc.] 52

5 [Financial Information] 98

1. [Consolidated Financial Statements] 99

   1. [Overview of Operational Procedures for Shares of Niterra Co., Ltd.] 165

   2. [Reference Information on Niterra Co., Ltd.] 166

      1. [Information on the parent company, etc., of Niterra Co., Ltd.] 166

      2. [Other reference information] 166

   Part II [Information About Guarantee Companies, etc., of Niterra Co., Ltd.] 167

   Independent Auditor's Report

   [Cover]

   [Document Submitted] Annual Securities Report ("Yukashoken Hokokusho")

   [Applicable Law] Article 24, Paragraph 1 of the Financial Instruments and Exchange Act of Japan

   [Submitted to] Director, Kanto Local Finance Bureau

   [Date of Submission] June 24, 2025

   [Fiscal Year] 125th Fiscal Year (April 1, 2024 to March 31, 2025)

   [Company Name] Nippon Tokushu Togyo Kabushiki-Kaisha

   [Company Name (in English)] Niterra Co., Ltd.

   [Position and Name of Representative] Takeshi Kawai, Representative Director and President [Location of Head Office] 1-1-1 Higashisakura, Higashi-ku, Nagoya, Aichi, Japan

   [Phone No.] +81-52-218-6399

   [Contact for Administrative Matters] Joji Matsumoto, General Manager of Management and Financial Supervision Department, Global Strategy Division

   [Nearest Contact Point] Tokyo Branch Office, Niterra Co., Ltd. 1-8-23 Konan, Minato-ku, Tokyo, Japan

   [Phone No.] +81-3-6872-1001

   [Contact for Administrative Matters] Mitsuaki Koyama, Manager of Tokyo Secretarial Section

   [Place Available for Public Inspection] Tokyo Stock Exchange, Inc.

   (2-1 Nihombashi Kabutocho, Chuo-ku, Tokyo, Japan)

   Nagoya Stock Exchange, Inc.

   (3-8-20 Sakae, Naka-ku, Nagoya, Aichi, Japan)

   This document is an English translation of the original Annual Securities Report ("Yukashoken Hokokusho") filed with the Director of the Kanto Local Finance Bureau via Electronic Disclosure for Investor's NETwork (EDINET) pursuant to the Financial Instruments

   and Exchange Act of Japan. In the event of any discrepancy, errors and/or omissions, the Japanese language version shall prevail.

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Part I [Information on the Company]

1. [Overview of the Company]

1. [Trends in key management indicators, etc.]

(1) Consolidated management indicators, etc.

(Notes) 1.The consolidated financial statements are prepared in accordance with International Financial Reporting Standards (hereinafter, "IFRS").

1. Diluted earnings per share are not provided because there are no dilutive shares.

2. The number of full-time employees is shown for the number of employees.

3. The Company introduces a Board Incentive Plan Trust ("BIP Trust") and Employee Stock Ownership Plan Trust ("ESOP Trust"). Shares of the Company held by these trusts are recorded as treasury stock on the consolidated financial statements. In addition, when calculating equity attributable to owners of the parent per share and basic earnings per share, these shares are included in the number of shares of treasury stock at the end of the period and treasury stock excluded from the calculation of the average number of shares during the period.

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