Announcement Regarding the Execution of "Mizuho Positive Impact Finance PRO"

Japan Dry Chemical Co., Ltd. (President and CEO: Masafumi Kamei) announces that financing under Mizuho Bank's "Mizuho Positive Impact Finance PRO" (*1) was executed today.

Under our purpose, "Creating a Rich and Secure Future with Technology," we have established a "Sustainability Basic Policy" by re-examining our management philosophy and policies from a sustainability perspective. Furthermore, we have formulated "NDC VISION 2035" as our ideal corporate image for fiscal year 2035, and we are promoting sustainability management to fulfill our social mission of providing peace of mind and safety to the world.

This financing was evaluated qualitatively and quantitatively based on these corporate activities, particularly those that have an impact on achieving the SDGs, concerning the themes described later.

1. What is Mizuho Positive Impact Finance PRO?

Utilizing the impact assessment framework developed by Mizuho Bank based on the "Principles for Positive Impact Finance" (*2), this finance comprehensively and quantitatively assesses the social impact (positive and negative impacts, *3) of our corporate activities. It refers to finance provided with the aim of continuous support for initiatives confirmed to "demonstrate the creation of positive impact and the mitigation of negative impact" through such assessments.

Additionally, we have obtained third-party opinions from Japan Credit Rating Agency, Ltd. (JCR) regarding the alignment with the Principles for Positive Impact Finance for this assessment, and with the "Basic Concept of Impact Finance" compiled by the Positive Impact Finance Task Force established under Article 2, Paragraph (4) of the Ministry of the Environment's "Framework for Establishing a High-Level Panel on ESG Finance."

2. Overview of This Transaction

Borrower	Japan Dry Chemical Co., Ltd.
Loan Amount	1 billion yen
Use of Funds	Long-term working capital
Execution Date	March 31, 2026
Loan Term	5 years

*1: "Mizuho Positive Impact Finance PRO"

Press release dated October 6, 2022, "Regarding the Start of Handling "Mizuho Positive Impact Finance PRO""

(https://www.mizuhobank.co.jp/release/pdf/20221006release_jp.pdf)

*2: Principles for Positive Impact Finance

A common framework for finance towards achieving the SDGs, published in 2017 by the Positive Impact Working Group, a banking and investment member of the United Nations Environment Programme Finance Initiative (UNEP FI). It comprehensively assesses impacts from both positive and negative perspectives across the three dimensions of sustainable development (environmental, social, and economic). UNEP FI also presents the Impact Radar, consisting of 12 impact areas and 34 impact topics, as a tool for identifying impacts.

*3: Social Impact

"The social and environmental outcomes resulting from the business or activities, including short-term and long-term changes." Outcomes refer to the changes, benefits, and results brought about by the outputs of businesses and initiatives.

5. KPIs