NEWSRELEASE 1February 16, 2021

ZENOAQ Group to Change to Holding Company Structure
Establishment of ZENOAQ HOLDINGS CO., LTD.

NIPPON ZENYAKU KOGYO CO., LTD. (Fukushima Japan, President: Toshikazu Fukui, known as
ZENOAQ) and ZENOAQ RESOURCE CO., LTD. (Fukushima Japan, President: Kuniaki Fukui)announced reorganization of entire group company from FY2021 in order to stabilize
management and expand business. We will establish new business holding company "ZENOAQHOLDINGS CO., LTD." and affiliate NIPPON ZENYAKU KOGYO CO., LTD., which mainly focuseson veterinary drugs, and ZENOAQ RESOURCE CO., LTD. (to be renamed as ZENOGEN PHARMACO., LTD.), which mainly focuses on human medicine as wholly owned subsidiaries.
1. Background of group reorganization
NIPPON ZENYAKU KOGYO CO., LTD. celebrates its 75th anniversary in 2021 and has grown to No. 1
in the domestic market share* and 14th in the world ranking* of veterinary drugs. In the current
environment surrounding veterinary drugs, where the scale of the company is expanding and thespeed and expertise of management decisions are strongly required, a new long-term plan "2030
Plan" will start in 2021, and therefore we thought it was the best time to reorganize the Group.
* Domestic share: Source = Fuji Keizai (2020)* World ranking: Source = Animal Pharm (2019)

On the other hand, ZENOAQ RESOURCE CO., LTD. has been developing the business of human drug
related products such as development/sales of medical devices, exploratory and applied researches
for new drug candidates and vaccine adjuvants by introducing biotechnology, in addition to the cell
cryopreservation solution (CELLBANKER) business manufactured by NIPPON ZENYAKU KOGYO CO.,LTD. Therefore, we considered to make ZENOAQ RESOURCE CO., LTD. a "Company specializing inhuman drug-related businesses" and aim to accelerate and advance these researches.

2. Reasons for shifting to a business holding company system
In the midst of major changes in the Group's business environment, in order to achieve sustainablegrowth in the future, such as expansion of its business portfolio, strategic alliances, gradual progress
toward a "global company" and efforts in the field of human medicine as a growth driver, weconsidered that it is necessary to take a bird's-eye view of the entire Group and optimally allocate
limited management resources to strengthen competitiveness in each business unit and have decided

NEWSRELEASE 2

that it is appropriate to shift to a holding company system.
Objectives(1) Progress toward a "global company" through flexible strategic alliances.
(2) Early development of new businesses, establishment of a system to enter new markets andexpansion of business portfolio.
(3) Separation of Group management supervision and business execution, and strengthening ofgovernance system.
(4) Development of Group management personnel.

3. Holding company structure after Group reorganizationZENOAQ HOLDINGS CO., LTD. will be newly established to provide timely and appropriate
management guidance.

ZENOAQ HOLDINGS CO., LTD.（ZH）

100%

100%
ZENOAQ RESOURCE CO., LTD.（ZR）↓(company name change)

NIPPON ZENYAKU KOGYO CO., LTD.（ZQ）ZENOGEN PHARMA CO., LTD.（ZP）

4. Overview of "ZENOAQ HOLDINGS CO., LTD."
Item

Content

Date of establishment

April 1, 2021

Head office location

1-1, Tairanoue, Sasagawa, Asaka-machi, Koriyama City, Fukushima
PrefectureCapital

100 million yenCEOKuniaki Fukui

5. Future dates（2021）
Extraordinary general shareholders’ meeting regarding approval of share transfer

March 22

Establishment of ZENOAQ HOLDINGS CO., LTD.

April 1Company name change to ZENOGEN PHARMA CO., LTD.

July 1