Responding to Disaster Risk

Basic Concept

The Nisshinbo Group holds safety as the top priority for all of its activities with "Safety is the Basis for Everything" in the Business Conduct Guidelines.

In addition, the "Risk Management Regulations" of Nisshinbo Holdings Inc. clearly stipulate the following action guidelines in the event of a disaster or other emergency situation.

Guidelines for Action in the Event of Emergencies

• ① In the event of an emergency, the response shall take precedence over normal business activities.
• ② The safety and health of the Group's customers (including indirect customers), officers, employees, suppliers, neighboring residents, and other related parties shall be given top priority.
• ③ Proactively disclose information regarding the safety and interests of all concerned parties.

Crisis Management System

The Nisshinbo Group has established an emergency response system in the "Risk Management Regulations" in order to promptly respond to emergencies, such as earthquakes and fires. In the event of an emergency, Nisshinbo Holdings Inc. will establish an Emergency Response Headquarters and an Emergency Response Team as the response headquarters. The Emergency Response Headquarters is headed by the president and the member of the response headquarters is appointed by the Company's executive officers. The Emergency Response Team is headed by the Executive Officer in charge of the Risk Management Department, and team members are appointed from Managing Officer. The Emergency Response Team consists of an Information Gathering Team, a Safety Confirmation Team, a Communication Team, and a Secretariat.

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<Composition and Roles of the Emergency Response Headquarters>

<Composition and Roles of the Emergency Headquarters and Emergency Response Team>

In principle, the Emergency Headquarters will be established in the event of an earthquake of intensity 6 lower or greater on the Japanese seismic intensity scale at any of the major bases in Japan. In other cases, the establishment of the task force will be decided by the president, who is the head of the task force.

Specific Initiatives of The Nisshinbo Group

Disaster BCP Initiatives

From the perspective of business continuity, the Nisshinbo Group conducts annual drills to confirm the safety of employees in the event of a major earthquake or other emergency and to communicate information necessary for early recovery from a disaster. The Group is continuously working to improve its systems to ensure the reliability and speed of employee safety checks, including conducting input and response drills at the company level.

In addition, Nisshinbo Holdings Inc. and major business sites of the Group have organized a self-defense fire brigade, which conducts periodic inspections of fire prevention equipment and other facilities, as well as water spraying drills. In addition, annual disaster prevention inspections have been conducted for more than 60 years to strengthen the company's ability to respond immediately after a disaster strikes and to develop an initial response system.

During the FY2025 emergency response training conducted by Nisshinbo Holdings Inc., Nisshinbo Holdings provided training on the initial response procedures in the event of a major earthquake and on the response procedures for a cyber incident. Nisshinbo provides the initial response training for major earthquakes on an ongoing basis, changing the scenario each year, to ensure a smooth transition to the business continuity plan (BCP) framework as soon as an emergency occurs.

During the cyber incident response drill, Nisshinbo reviewed the initial response procedures of each department, the coordination mechanisms with the Information Systems Department and the Emergency Response Headquarters, and the entire process from executive decision-making to subsequent actions with the aim of enhancing the organization’s ability to respond to cyberattacks.

BCP Initiatives in the Procurement Supply Chain

Nisshinbo Group is inquiring about the status of BCP in the procurement supply chain as a survey item for suppliers. The results for FY2025 showed improvements in BCP initiatives by some suppliers. Nisshinbo will continue to provide feedback on the survey results and offer support with the aim of enhancing BCP standards across the entire supply chain as the Nisshinbo Group.

Specific Activities of the Group Companies

Conducting a Comprehensive Evacuation Drill to Strengthen Disaster Preparedness

JRC Tokki Co., Ltd., conducted comprehensive evacuation drills simulating a major earthquake at each of its locations with the aim of strengthening its disaster preparedness measures.

In September 2025, the headquarters of JRC Tokki conducted a Shake Out drill simulating a major earthquake directly beneath the Tokyo metropolitan area to review initial safety procedures. Concurrently, the in-house fire brigade provided training on the operation of indoor fire hydrants to establish a rapid response system for initial fire suppression. Following the drill, the fire brigade captain reminded employees to inspect emergency supplies regularly and make sure they have means of contacting their families, making it a valuable opportunity to raise employees’ disaster preparedness awareness.

Each plant conducts training tailored to local conditions. In July of the same year, the Kure Plant held an evacuation drill to move to higher ground when simulating a Nankai Trough earthquake and tsunami to confirm the safety of evacuation routes. Additionally, in November of the same year, the Sasebo Plant conducted specialized training drills simulating fires and hazardous material leaks caused by an earthquake, thereby strengthening its information-sharing system.

In addition, JRC Tokki is working to improve its facilities with a focus on contributing to the community, including the installation of accessible restrooms and the establishment of systems to accommodate disaster victims from the surrounding area. JRC Tokki will continue to maintain thorough preparedness and carry out business activities that support the local community.

Testing and Implementation of Emergency Response Plans for Disasters and IT Incidents

In November 2025, Nisshinbo Somboon Automotive Co., Ltd., in Thailand conducted an IT emergency response test, which revealed the risk of a cyberattack that could affect all departments in the event of a core server failure.

This exercise evaluated the organization’s readiness in relation to business continuity KPIs. The IT Department quickly detected the incident, reported it to senior management, and facilitated timely decision-making. Additionally, the disaster recovery site on Amazon Web Services was activated within two hours, which met the target recovery time of two hours and thirty minutes, and data loss was contained within two hours.

While these results confirmed the effectiveness of the plan, the results also revealed the cost risks associated with cloud recovery. Consequently, Nisshinbo Somboon Automotive decided that it needs to review its work instructions and checklists and strengthen its IT management framework to ensure a more proactive approach.

Practical Drill for the Emergency Response Plan During Power Outages at Public Facilities

Nisshinbo Somboon Automotive Co., Ltd. in Thailand conducted a simulation exercise based on a scenario in which high-voltage power supply equipment short-circuited, resulting in severe damage.

The damage was so severe that it could not be repaired, which necessitated the replacement of the entire unit. Unfortunately, the specific model the company was using was no longer available, so the team had to source and install a different model with equivalent performance from a commercially available source. Given this situation, close coordination and cooperation between the internal departments and external contractors became essential. Thanks to effective teamwork, planning, and execution, the replacement was successfully installed. New high-voltage power supply equipment replaced the damaged units, and power was restored. Thanks to the cooperation and efficient coordination of everyone involved, the work was completed in three days, allowing the company to quickly return to normal operations.

Through this training, Nisshinbo Somboon Automotive was able to reaffirm the importance of advance preparation, adaptability, and robust communication channels when responding to unexpected technical issues.

Joint Fire Drill with the Byeongcheon 119 Safety Center and In-House Fire Safety Training

To enhance its response capabilities in the event of fires and emergencies, Saeron Automotive Corporation in South Korea collaborated with the local 119 Safety Center in Byeongcheon to conduct joint fire drills and provide fire safety training for its employees.

Fire safety training for employees was provided twice in October 2025 with a total of 202 executives and staff members participating. Participants received instruction on initial response procedures in the event of a fire, how to use fire extinguishers, and evacuation procedures. In addition, in November 2025, Saeron Automotive conducted a joint fire drill simulating a fire in collaboration with the Byeongcheon 119 Safety Center. The company conducted a drill involving 150 executives and employees to review general response procedures, including reporting a fire, initial fire suppression, and evacuating personnel. In particular, this drill included hands-on training for new employees on how to use fire extinguishers by moving beyond theory-based instruction to strengthen their ability to respond calmly in actual fire situations.

Saeron Automotive is committed to ongoing safety initiatives designed to raise safety awareness among its employees through training and education, ensuring they can respond quickly and systematically in the event of an actual emergency.

Implementation of On-Site Disaster Preparedness Training Sessions by the Disaster Prevention Corporation and the Fire Department

The Chiba Plant of Nisshinbo Chemical Inc. believes that ensuring the safety of all personnel is the top priority in the event of a disaster. Guided by the principle of each person is responsible for their own safety in our self-managed fire prevention program, the plant strives to raise disaster prevention awareness among all employees and achieve safe and sustainable business operations.

In September 2025, with the cooperation of the Chiba City Disaster Prevention Corporation, Nisshinbo Chemical conducted a hands-on training session attended by 25 participants, primarily young employees. The company plans to hold this training every September. During the water fire extinguisher training, participants practiced operating the equipment and learned how to make decisions regarding initial fire suppression, as well as the characteristics of fire extinguishers. During the earthquake simulation, participants experienced the intensity of tremors similar to those of the Great Kanto Earthquake and reviewed the proper action to take during and after a disaster, as well as evacuation routes. Through the emergency call simulation, participants gained an understanding of the importance of accurately conveying information. With the cooperation of the Chiba City Midori Fire Department, Nisshinbo Chemical has been conducting first-aid training sessions that cover the use of AEDs and stretchers twice a year since 2023 with a participation rate of 64%.

Nisshinbo Chemical will continue to conduct these drills and work toward creating a disaster-resilient workplace.