2nd Report on the Impact of the Tohoku-Pacific Ocean Earthquake

NIPPON KAYAKU Co., Ltd. offers its sincerest condolences to those people who lost their lives in the Tohoku-Pacific Ocean Earthquake that struck on March 11, 2011, and its deepest sympathies to everyone affected by this tragedy.

The extent of the damage from the earthquake to NIPPON KAYAKU Group was reported on March 17 (in Japanese). A report on matters that have since come to light and the future situation is described below.

1. Safety of our employees

As in the March 17 report, the safety of all employees of the NIPPON KAYAKU Group has been confirmed.

2. Afflicted facility

Kashima Plant (Kamisu-shi, Ibaraki / Mainly production of agrochemicals)

3. Condition of the above afflicted facility

No abnormalities were found with the building at the Kashima Plant. However, production has been suspended due to blackouts. The production facility is undergoing inspections and maintenance work, and efforts are being made to restart production soon. The shipment of products has already resumed.

4. Planned rolling blackouts

The Takasaki Plant (Takasaki-shi, Gunma / Mainly production of pharmaceuticals) is inside the area that is subject to planned rolling blackouts. The planned blackouts meant that faults were found in products under cultivation, with some being disposed of. However, NIPPON KAYAKU is committed to production to ensure the stable supply, in particular, of important anticancer drugs, and has come up with schemes such as changing the production schedule and working shifts at the plant. With the implementation of planned blackouts for premises under the jurisdiction of the Tokyo Electric Power Company Inc. and an expansion of the areas subject to blackouts, NIPPON KAYAKU will make a further announcement if a significant impact on business is expected.

5. Impact on business results

The earthquake’s impact on the consolidated business results of the company is unclear at this time. We will make an announcement immediately should a significant impact on business results become likely.

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