Daicel Corporation (Headquarters: Kita-ku, Osaka; President & CEO: Yoshimi Ogawa) has signed a stock transfer agreement with JSK14 Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; President & CEO: Akira Yoshikawa), a special purpose company of JigyoSyokeiKikou Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; President & CEO: Akira Yoshikawa, hereinafter referred to as JSK). As of March 27th, 2025, we have transferred all shares of our consolidated subsidiary DM Novafoam Ltd. (hereinafter referred to as DM Novafoam) (*1).

In line with our mid-term strategy "Accelerate 2025," we are promoting a shift in our business structure. We determined that finding the best owner who can fully understand the strengths and potential of DM Novafoam and provide support from a mid-to-long-term perspective is the optimal choice for all stakeholders, aiming at the realization of our mid-term strategy and the stable business continuity of DM Novafoam. Additionally, one of the conditions for selecting the best owner was their commitment to maintaining employment and respecting the corporate culture, considering that DM Novafoam employs approximately 200 people in Nagano, Aomori, and Okayama, contributing to the local economy.

Since its establishment in 1967, DM Novafoam has deepened its technology in high-foam plastics and developed various reliable and environmentally-friendly cushioning materials. Currently, it possesses a wide range of products for agricultural and industrial use. In particular, DM Novafoam boasts the top domestic shipping volume　 of cushioning materials for fruit packaging used during shipment, making it an essential presence in fruit distribution. DM Novafoam provides a stable supply of high-quality products from its three plants in Nagano (headquarters), Aomori, and Okayama, receiving high praise from its clients.

JSK's business purpose is to "preserve Japan's treasured small and medium-sized enterprises (SMEs)," "leave employment, economy, and safety for future generations" through permanent ownership (no resale, consolidation, or transfer) and provide business succession investments and management support. They implement SME support from a mid-to-long-term perspective, backed by a strong support system comprising former managers and experts with abundant experience. Based on this approach, we decided that JSK is the best owner to entrust DM Novafoam to, and have transferred all shares to JSK14, a special purpose company established by JSK.

(*1) Daicel purchased all shares of DM Novafoam (equivalent to 35% of issued shares) held by Mitsui Chemicals, Inc., (Headquarters: Minatoku, Tokyo; President & CEO: Osamu Hashimoto) making DM Novafoam a wholly owned subsidiary before transferring it to JSK14. JSK14 is a special purpose company established by JSK with 100% funding to acquire the shares of DM Novafoam.

Information on DM Novafoam Ltd.:

Name	DM Novafoam Ltd.
Established	1967
Headquarters	361-1 Karita, Obuse-machi, Kamitakai-gun, Nagano Prefecture
Business	Manufacturing and selling of high-foam plastic products (mainly agricultural cushioning materials)
Employees	189

Information on JigyoSyokeiKikou Co., Ltd.:

Name	JigyoSyokeiKikou Co., Ltd.
Established	2018
Headquarters	2-6-5 Kojimachi, Chiyoda-ku, Tokyo
Business	Business succession investment through permanent ownership, management support and improvement support of investee companies. Succession Companies:23, Group Total Sales: 18.1 billion yen, Employees: Over 1,040
Employees at Headquarters	60

For inquiries regarding this matter:
Daicel Corporation, IR Public Relations Group
TEL: 03-6711-8121
Mail: public_relations2@jp.daicel.com