Notice on Additional Share Acquisition of Taiyo Fertilizer Co., Ltd. (Equity-Method Affiliate) by Our Subsidiary (Subsidiarization) and Personnel Changes

Overview of Additional Share Acquisition

Ichinen Holdings Co., Ltd. has completed the acquisition of additional shares in Taiyo Fertilizer Co., Ltd., an equity-method affiliate, consolidating it as a subsidiary. The number of shares acquired is 4,000,000, which combined with the 2,000,000 shares previously owned totals 6,000,000 shares, resulting in a 100.0% voting rights ownership. Consequently, Taiyo Fertilizer has become a consolidated subsidiary of the Company, and its subsidiary, Nippon Daihosca Co., Ltd., has become a grandchild company within the Group.

Overview of Taiyo Fertilizer and Nippon Daihosca and Personnel Changes

Taiyo Fertilizer Co., Ltd. mainly manufactures and sells chemical fertilizers and blended fertilizers, with projected net sales of approximately 3.5 billion yen and operating income of approximately 59 million yen for the fiscal year ending June 2025. Nippon Daihosca Co., Ltd. manufactures and sells fertilizers, with expected net sales of approximately 213 million yen and operating income of roughly 1.9 million yen for the same period. Effective April 3, 2026, Heihachi Kimura was appointed President and Representative Director of both companies, along with multiple other personnel changes including directors and auditors.

Future Outlook

With this share acquisition, Taiyo Fertilizer will become a consolidated subsidiary from the fiscal year ending March 2027, but the impact on earnings is expected to be minimal. By integrating fertilizer manufacturing expertise with the technological capabilities of the Ichinen Group, we aim to broaden product proposals, increase market share, and expand sales.