Human Capital
Based on our corporate philosophy of “contribute to the protection of the global environment and the existence/development of humanity, offering the value sought by society”, we believe that enhancing human capital is one of the most important issues for our growth as a “future-creating company" to develop together with society. To strengthen our businessfoundation, we are promoting initiatives aimed at developing human resources and creating comfortable workplaces.

Under the long-term business plan “Atelier2050”, we have set
out the ideal state of our organization for 2050 as “a group ofco-creators that face challenges for change with a strong passion”. We have also defined a basic stance for our employees
around the three ideas of, “valuing the integrity as the strength”,“taking a step forward with the vision”, and “transcending collaboration to co-creation”. As such, various initiatives are being
taken to develop human resources and improve the workplaceenvironment in order to realize an organization in which diverse
human resources can take on challenges toward their own goals
and they aspire toward personal growth, while upholding NissanChemicalʼs strength and identity of “integrity”. We have set targets for each initiative to human capital management for FY2024,
the final year of the mid-term business plan “Vista2027 Stage I”,
as a key milestone, and promote initiatives.

Key factors for realizing the organization’s vision
Human resource
development

Producing leading human resources whowill continue to challenge toimprove value

Producing co-creators who transcend
domains

Creating a culture of diversity that respects individuality
Improvement of
an internalenvironment

Producing discerning human resources
who able to judge business potential andcommercialize it

Creating a culture of understanding and empathy toward thecorporate philosophy●Ai Campaign
This activity unique to Nissan Chemical attempts to make improvement proposal from small group activities at each plant. It
started in 1978 with almost all operators from each plant taking
part every year. We aim to improve our stance to continue tomake improvements that lead to improve value from on-site
perspective, and to improve our ability to make proposals without being bound by precedent.

Key factor 2: Producing co-creators who transcend domains
number. In addition, we aim to create a state that outside parties
can be involved and co-created in order to newly acquire, improve the value of, and develop, our own technologies. We will
promote cross-border collaboration, not fixed solely to one area,such as joint research and joint patent applications with othercompanies, as well as the loan, transfer, and dispatch of humanresources outside the Company.

To continuously produce new products, services, and seeds oftechnology that contribute to solving social issues, our challenge is to produce human resources who can “co-create” newvalue by collaborating across borders rather than closing insolely on their own areas (technologies or departments). Therefore, we have set the “number of co-creation themes” in our hypothesis verification-based training, the 10% Challenge, and theAi Campaign, as an indicator, and making efforts to increase thisIndicator

Result (FY2022)

Target (FY2024)

Number of co-creation themes

134 cases*

160 cases* The number of initiatives for the 10% Challenge introduced from FY2023 is not included in FY2022 results.

Promoting employees’ mental and physical health◎Related Information: “Ideal State in FY2050” P45

Key factor 1: Producing leading human resources who will continue to challenge to improve value
have set the “positive response rate in survey of employee attitude on willingness to take on challenges” as an indicator of thisfactor. We aim to improve this figure through initiatives such as
hypothesis verification-based training, the Ai Campaign, and the10% Challenge starting in FY2023.

For Nissan Chemical to continue to grow in the future, our challenge is to produce human resources who can drive the business forward by thinking independently and challenging themselves, based on “vision (self-motivation)”, to make improvements
and proposals that will lead to improve value. Therefore, weIndicator

Result (FY2022)

Target (FY2024)

Positive response rate in survey of employee attitude onwillingness to take on challenges

67.0%

70.0%

●Hypothesis Verification-based Training(updated from FY2020)
In the training before promotion to C3 class (equivalent to subsection manager), participants formulate a vision for the futureand initial hypotheses (questions and answers) and then spend
several months examining and revising the vision and hypothesis to refine the action plan for the purpose of “acquiring future-creating leadership skills”.
In training before promotion to managerial position (equiva-Nissan Chemical Corporation

lent to section manager), with the aim of “acquiring leadershipthat unleashes the future creativity of people and organizations”, participants train their ability to interpret information byaccessing the knowledge of the world, and collect and analyze
valuable information, while demonstrating leadership and promoting transformation. Based on this, they conceive ideas for
new businesses, products and services, and go through the process of hypothesis verification that leads to the commercialization of products and services for the Company.

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Key factor 3: Producing discerning human resources who able to judge business potential and commercialize it
And by actively rotating staff across job categories, such as
research, manufacturing, and sales, we will provide opportunities for researchers and engineers to directly discuss with customers as much as possible, and foster the ability to identify
business opportunities not only from a perspective of technological point, but also from the perspective of the customer, market,and social issues.

To develop new products and services that will be the source ofgrowth for the next generation, our challenge is to produce discerning human resources who can identify the product needs
that is irreplaceable “Must-Have” while taking into account market needs, and judge the growth potential of the value chain. To
produce such discerning human resources, we are implementing an intrapreneurship program aimed at developing the abilities of entrepreneurs and fostering in-house entrepreneurs.

●Intrapreneurship Program (started in FY2019)
We have started an intrapreneur (in-house entrepreneur) training program in FY2019 with the goal of developing the abilities ofentrepreneurs and fostering them. With the support and coaching of active entrepreneurs, participants practice behavioral
skills through actual project in mixed teams selected from multiple departments. By repeatedly gathering information from potential customers in Japan and overseas and verifying hypothesis in a short cycle, they will promote the brushing up of promising
themes and learn how to act as innovators.

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Value Creation & Growth Strategies

Promoting Human Capital Management●10% Challenge (starting FY2023)
In FY2023, we newly introduced a system that allows employees
to devote 10% of their annual working hours to challenges in areas outside of their normal work or in areas not specified in department policies, based on self-motivation. With this 10% Challenge, we hope to foster a culture of enjoying the challenge,
regardless of success or failure, and to broaden employeesʼ own
possibilities through the experience of taking on new challenges.

Human Capital

Key factor 5: Creating a culture of understanding and empathy toward the corporate philosophy

To develop human resources who will continue to challenge toimprove value, our challenge is to create a corporate culturethat respects and accepts diversity of all people who work together, and at the same time, allows the exchange of ideas (different opinions) held by such diverse individuals. Therefore, wehave set the “positive response rate in survey of employee atti-

For Nissan Chemical to contribute to solving social issues andgrow together with society, our challenge is for each and every
employee to align the corporate philosophy with their own individual purpose to increase their sense of understanding toward
the corporate philosophy, which is the basis of our business activities. Therefore, in order to foster a corporate culture in which
each employee can work with the feeling that they are contributing to the realization of our corporate philosophy and vision, wetude on diversity and career planning” as an indicator to assess
this factor. We aim to improve this figure by setting opportunities for direct dialogue between employees and the officer incharge of human resources, career dialogue to develop individual career plans, and introducing various systems to promote
work styles that match the lifestyles of each employee.

Indicator

Result (FY2022)

Target (FY2024)

Positive response rate in survey of employee attitude on diversity
and career planning

65.5%

70.0%

●Career Dialogue (starting in FY2023)
In FY2023, we began holding dialogues between employees andtheir superiors once a year to develop their career plans, separately from the performance evaluation interviews, in order tomake the most of each personʼs individuality and foster job satisfaction.
Going forward, content of the dialogues will focus not only
on their “work”, but also on the “people” themselves, so that
employees can see their careers not only in terms of “career =work experience at a company, and transfer” but also as “career= life experience based on oneʼs own values and way of being”.

●Promotion of Diversity
Nissan Chemical has a diverse workforce, regardless of age,gender, or nationality, working in a wide range of fields. In the future, we will further promote diversity in order to enhance corporate value by taking advantage of diversity in terms of values,abilities, and experience, which cannot be expressed in terms ofattributes.
Innovation
Social needs

Individual purpose

Conflict and Fusion
Diversity of Talent *2

Diversity of Opinion *1●Introduction of Systems for Promoting a Good Work-Life

Gender,Nationality,etc.

Balance
We are working to improve the rate of employees taking annual
leave (target rate of at least 80% of available annual paid leave)by introducing a flextime system, an hourly annual leave system,
and a system that allows expired paid leave to be used for nursing/caregiving. Since FY2022, the telecommuting system has
been made a permanent system. Also, in 2023, we were granted
the Next Generation Accreditation Mark (Kurumin) by the Ministry of Health, Labour, and Welfare for our efforts as a company
to support childcare. This is the second time we have received
such accreditation following 2018.

Experience,Expertise,etc.
Values,etc.

All kinds of diversity*1 Diversity of Opinion (fusion of diverse opinions): A state in which diverse opinions are expressed and fused ina free and open atmosphere*2 D iversity of Talent (demonstration of diverse talents): A state in which individual strengths are recognized anddemonstrated, and high performance is achieved by the organization as a whole

are promoting efforts such as holding sustainability and IR inhouse briefings and having the president visit each site every
year to provide opportunities to speak with employees and engage in direct dialogue. Through these efforts, we aim to improve the “positive response rate in survey of employee attitude
on the degree of understanding and empathy toward our corporate philosophy.

Indicator

Result (FY2022)

Target (FY2024)

Positive response rate in survey of employee attitude on thedegree of understanding and empathy toward our corporate
philosophy

64.4%

70.0%

Key factor 6: Promoting employees’ mental and physical health
And through our responsible care management system, we
are working to prevent occupational accidents, promote thegood health of staff, and create a comfortable workplace environment in our efforts to improve the level of health and safetyat each business site.
As a result of these and other efforts, we aim to reduce productivity loss by presenteeism and continue to acquire comprehensive and objective certifications related to health management, such as the White 500.

We are implementing various measures based on the belief that
employeesʼ health is a “foundation that supports sound corporate growth” with the goal of maintaining and improving thephysical and mental health of employees. Specifically, we arepromoting regular health checkups, conducting stress checks,and holding seminars on improving the ability to manage healthfor all employees, with the aim of reducing the ratio of employees with high stress and increasing the ratio of employees with
optimal weight (body mass index (BMI) of between 18.5 and 25.0).

Indicator

Result (FY2022)

Target (FY2024)

Ratio of employees with high stress

8.1%

7.0% or less●Mental Health Care ertified Health and Productivity Management Organization●CWe introduced a stress check in 2015. Each year, organizational
analysis of the results is conducted and the reporting session isheld at each business site. More than 200 people, including
heads of plants and laboratories, management level employees,and union officers, etc., participate in the reporting session toformulate workplace environment improvement plans.
For management level employees, Line-Care Training is provided on a regular basis. For employees, we have introduced
e-learning for Self-Care and counseling services available toemployees and their families.

(White 500)
In cooperation with theHealth Insurance Association, we are implementing
measures to promote thehealth of our employees, focusing on lifestyle-relateddiseases and mental healthcare, etc. which are key
items in our Basic Health
Policy. As a result of these efforts, we have been certified by theMinistry of Economy, Trade and Industry and the Nippon Kenko
Kaigi as a “White 500 Health and Productivity Management
Outstanding Organization” for seven consecutive years.

WebPromotion of Diversity
https://www.nissanchem.co.jp/eng/csr_info/communication/employee/respect.html
Creation of a Comfortable Workplace
https://www.nissanchem.co.jp/eng/csr_info/communication/employee/dialogue.html

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Maintenance and Improvement of Employees’ HealthWeb https://www.nissanchem.co.jp/eng/csr_info/communication/employee/workplace.html

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Value Creation & Growth Strategies

Key factor 4: Creating a culture of diversity that respects individuality