May 12, 2021
Nihon-Nohyaku Ltd.
Yosuke Tomoi
Representative Director
Code No. 4997 TOPX
Contact: Motohiro Nagai
General Affairs & Legal Department
Administration Division
Call 03-6361-1400

Notice regarding Formulation of New Medium-term Management Plan
The Basic Nihon Nohyaku Group (hereinafter referred as Nichino Group) Principles as follows, which
are shared by all executives and employees and serve as the foundation for all our activities.
Nichino Group Corporate Philosophy
・We contribute to society by ensuring a safe and steady food supply and improving the quality of life for all.
・We fulfill market needs by creating superior values with innovative technologies.
・We commit to be a trustworthy company for all stakeholders through our fair and vigorous business activities.
Based on this basic philosophy, we have formulated New Mid-term Management Plan (from fiscal 2021 tofiscal 2023) to realize our Nichino Group Vision, which defines our aspirations for the future, in order toachieve sustainable growth for the Group and increase corporate value over the medium to long term. The
following is a summary of our efforts.
１．Nichino Group Vision "Nichino Group - Growing Global"
・Supporting agricultural production and healthy lifestyles by providing advanced technologies that meetcustomer needs, such as new agrochemicals, pharmaceuticals, and animal health care products.
・Contributing to a sustainable society by expanding products and services that contribute to the SDGs,
such as products with low environmental impact and labor-saving technologies.
２．New Mid-term Business Plan "Ensuring Growing Global 2（EGG2）"(1) Basic policy
To achieve our Group Vision, we have set up a new corporate statement, "Global innovator for Crop &life" and will continue to strengthen our foundation to solidify "Growing Global" following the previous
Mid-term Management Plan. To strengthen the foundation, in addition to improving profitability
including expansion of group synergies, the basic policy is to innovate, establish next-generation
businesses, and continuously improve corporate value, and to promote agricultural production andhealthy lifestyles with advanced technology. We aim to be a corporate group that supports and contributes
to a sustainable society.
① Improve profitability"Expansion of priority products", "Cost reduction through optimal active ingredient manufacturingsystem", "Expansion of group synergy"② Technological innovation and establishment of next-generation businesses"Promotion and global expansion of research and development"," Expansion of non agrochemicalareas", "DX initiatives"

③ Sustainable growth in corporate value"Strengthening CSR activities and ESG management"," Promotion of business reform and work
style reform”(2) Outline of numeral plan
Plan for FYE Mar 2024
（last year）
89Bil
Consolidated Sales（Target Sales 100Bil）
Operating Profit
6.4BilOverseas Sales
57.1Bil
Overseas Sales Ratio
64％*The forward-looking statements such as the business outlook described in this document are
the information currently available and are reasonable. Based on certain assumptions, actual
business results may differ significantly due to various factors.
(3) Dividend Policy
Based on stable dividends, we aim for a dividend payout ratio of 30% or more.
(4) Specific Efforts＜Expanding priority products＞
By defining benzpyrimoxan, pyrifluquinazon, pyraflufen-ethyl, and flubendiamide as priority
products, we will work to expand sales areas and promote sales through simultaneous development
within and outside Japan and promoting acquisition of overseas registrations. Additionally, by defining
Brazil and India as primary strategic areas, we will expand its business scale with overseas groupcompanies as growth drivers.
＜Reducing raw materials costs by optimal production of active ingredients＞
Establishing the optimal global production system of active ingredients and reducing costs, we will
aim to improve efficiency of production through smart factories.
＜Expanding group synergy＞
Various measures that will lead to stronger sales expansion will be steadily implemented by businessdivisions and group companies. We will also ascertain dealer sales and inventory levels to work toward
timely product selection and sales campaign support.
＜Promotion and global expansion of research and development＞
As difficulty in creating new chemicals increases, steady progress is being made in enriching pipeline
compounds. We will realize early stage development of such compounds. Additionally, for new chemical
currently under development, by continuing with strategic research and development expense
investment (about 10% of net sales), we will steadily proceed toward commercialization. By
strengthening global registration and development capabilities, we will strengthen cooperation within
the Group with the objective of optimal commercialization.
＜Expansion into non agrochemical areas＞
Through applying technologies and experience gained in the agrochemical business, we will provide
new value to society that will contribute to healthy lifestyles via the life sciences, including developmentof pharmaceuticals and animal health care products, introduction of bio pesticides and bio stimulantsthat will aid in healthy plant growth, businesses that make use of half-fermented production
technologies using natural ingredients, and creating crops that contain specified functional components.
We will also consider business expansion through M&A and incorporating external value, etc., asopportunities arise.

＜DX Initiatives＞
Beginning with the promotion of energy efficiency through smart agriculture, we will promote transfer
to smart factories, and make use of social networking services and webinars in its promotion activities,
using digital and IT technologies to work toward improving customer service and corporate value by
innovating in business and operational ideals.
＜Strengthening CSR activities and ESG management＞
With a basic policy of “Contributing to food, the environment, and society through technologicalinnovation,” we will engage in the seven priority issues of enriching compliance and risk management,
raising the level of environmental management, enriching human rights management, promoting a
corporate culture of safety, development of technologies and products in response to societal needs,
participation in communities, and strengthening corporate and organizational governance. To steadily
implement these issues, we will strengthen CSR management via measures including strengthening
corporate governance, promoting diversity management, and positioning the CSR Committee on thesame level as the Management Committee to further improve the CSR activities of the Group.
＜Promoting business reforms and workstyle reforms＞
We will increase employee motivation by fundamentally revising existing structures in areas such as
personnel appraisal systems and work benefits, in addition to establishing an office environment whereemployees can work regardless of the time and place, creating a work environment that improves
productivity of employees from both soft and hard perspectives. Furthermore, by strengthening
measures in diversity and inclusion, the Company will promote personnel development of employeesthat can work on the global stage.