Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes.
In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

May 20, 2024

Announcement on Dissolution and Liquidation of Consolidated Subsidiary
Nippon Chemical Industrial Co., Ltd. (the "Company") has adopted a resolution on thedissolution and liquidation of its wholly owned subsidiary Toho Ganryo Kogyo Co., Ltd.,("Toho Ganryo Kogyo") at the meeting of the Board of Directors on May 20, 2024.
Particulars1. Reasons for dissolution and liquidation
Toho Ganryo Kogyo had operated business, including the manufacturing of a wide variety ofrust-preventive pigments, since 1940. The Company made the judgment that it was difficult
for Toho Ganryo Kogyo to further develop under the current production conditions becauseof aged production facilities and a changing production environment, and then the Company
adopted the resolution to transfer the main businesses of Toho Ganryo Kogyo, including rustpreventive white pigments, to the Aichi factory of the Company for an increase in production
efficiency and to let Toho Ganryo Kogyo discontinue production of all products and dissolve.

2. Overview of the subsidiary to be dissolved(1) Company nameToho Ganryo Kogyo Co., Ltd.

(2) Location

3-36-5 Sakashita, Itabashi-ku, Tokyo 174-0043 Japan(3)

Position and name ofrepresentative

President Katsuyuki Negishi(4) Business description

Manufacturing and sale of inorganic pigments and polish(5) Capital

96,000,000 yen(6) Date of foundation

October 29, 1940

(7)

Major shareholders
and shareholding ratio

Nippon Chemical Industrial Co., Ltd., 100%

Capital

The Company owns 1,920,000 shares, or 100%, of therelationshiptotal number of shares issued of the said company.
Two employees of the Company concurrently serve asRelationship between(8)

the listed company
and the saidcompany(9)

Personal

director of the said company and one employee of therelationship

Company concurrently serves as corporate auditor of
the said company.

Business

Purchase of products from the said company, sales ofrelationshipraw materials to the said company, and others

Application of

The said company is a consolidated subsidiary of thethe related

Company, and it is applicable to the related company ofparty

the Company.

Business results and financial position for the last three years

Fiscal year

FY March 2022

FY March 2023

FY March 2024

Net assets

344 million yen

381 million yen

430 million yen

Total assets

780 million yen

873 million yen

917 million yen

179.25 yen

198.87 yen

224.08 yen

Net sales

806 million yen

972 million yen

915 million yen

Operating income

45 million yen

67 million yen

89 million yen

Ordinary income

43 million yen

61 million yen

86 million yen

Net income

28 million yen

40 million yen

56 million yen

Net income per share

14.96 yen

21.21 yen

29.49 yen

Dividend per share

3.12 yen

3.12 yen

5.00 yen

Net assets per share

3. Schedule of dissolution and liquidation
Expected to be conducted in FY2025
4. Outlook
It is expected that expenses will accrue for the dissolution and liquidation. Their impact isnow closely examined on the full-year consolidated business results for FY March 2025 andFY March 2026, and any matters to be announced would be immediately disclosed.