DDS is a technology that enhances the effects of drugs by adjusting their physiological activity, targeting lesions, yielding chemical stability, adjusting metabolic activity, and other means, so that they act at the required place in the body in the required amount for the required time. This technology makes it possible to reduce the side effects of drugs and the frequency of injections required each day. By advancing this research, the NOF Group contributes to improving the quality of life (QOL) of patients who need these drugs and enhancing access to pharmaceuticals.
In addition, PCR test kits and antigen test kits were widely used as diagnostic pharmaceuticals for COVID-19, which spread aggressively worldwide. Going forward, as global warming progresses and new infectious diseases emerge, the demand for diagnostic pharmaceuticals is expected to increase. Therefore, the NOF Group is promoting the development of technologies that contribute to improving the quality and performance of diagnostic pharmaceuticals. We enable the prompt provision to a wide range of people, thereby contributing to improved access and people’s health
and hygiene.

Our Approach

The NOF Group contributes to pharmaceutical research and development, formulation optimization, and quality stabilization through the provision of pharmaceutical-related materials, including Drug Delivery System (DDS) materials, pharmaceutical excipients, biocompatible materials, and additives for diagnostic agents.
NOF supports the resilience of pharmaceutical supply chains and the stable supply of medicines by providing pharmaceutical manufacturers with high-quality pharmaceutical-related materials on a reliable and continuous basis. Through close collaboration and communication with customers, we also support improvements in manufacturing efficiency and product performance. Through these initiatives, we play an important role across the pharmaceutical value chain, helping to create an environment in which patients can access the medicines they need, when they need them.

Key Initiatives

1. Stable Supply of Pharmaceutical-Related Materials

To ensure the stable supply of pharmaceutical-related materials, we appropriately manage demand forecasting, production planning, equipment maintenance, inventory management, and raw material procurement. For critical pharmaceutical-related materials, we also strengthen supply continuity by securing multiple production sites, evaluating alternative raw materials and manufacturing methods, and developing emergency supply plans. These efforts help enhance supply chain resilience and maintain a stable supply of products in preparation for natural disasters, infectious disease outbreaks, geopolitical risks, and other unforeseen events.

2. Quality Assurance and Regulatory Compliance

We maintain a quality assurance system designed to meet applicable laws, regulations, customer requirements, and quality standards for pharmaceutical-related materials. We promote digital transformation (DX) in manufacturing and quality management processes and strive to ensure compliance with evolving quality standards and regulatory requirements. At selected manufacturing sites, we further strengthen data integrity through the use of digital technologies and provide highly reliable quality information, thereby supporting pharmaceutical manufacturers in maintaining product quality.

3. Contributing to Manufacturing Efficiency and Pharmaceutical Performance

We support productivity improvements for pharmaceutical manufacturers by enhancing the functionality of pharmaceutical-related materials, optimizing manufacturing processes, improving yields, and stabilizing product quality. We also provide technical expertise that contributes to improvements in formulation, storage stability, solubility, and ease of administration, as well as reduced dosing frequency, helping customers achieve stable pharmaceutical production and address diverse patient needs.

4. Collaboration with Customers and External Stakeholders

We strengthen collaboration with pharmaceutical manufacturers, raw material suppliers, research institutions, and other stakeholders in research and development, technology innovation, and quality improvement. By providing quality information required for pharmaceutical development and regulatory submissions, supporting compliance with regulatory requirements, and sharing supply plans, we contribute to the smooth development and manufacture of pharmaceuticals as well as their stable supply.

NOF Group supports the development and broader adoption of health- and nutrition-conscious products through food ingredients, functional food materials, and food processing technologies provided to food and beverage manufacturers, foodservice operators, healthcare and nursing care providers, and consumers.
NOF prioritizes key issues such as vitamins, minerals and other nutrients, the quality and quantity of proteins and lipids, the specific nutritional needs of older adults and infants, and improvements in food palatability, shelf life, and ease of preparation. Leveraging its expertise in oils, fats, and functional food ingredients, NOF develops and supplies materials that balance nutritional value, flavor, texture, processability, and product stability.
In developing food ingredients, NOF conducts nutritional analysis, safety assessments, functionality and quality evaluations, and compliance reviews against applicable laws and regulations.
For health and nutrition claims, NOF verifies consistency with scientific evidence and strives to ensure transparent, science-based disclosures.
NOF also seeks to improve access to nutrition by enabling its ingredients to be incorporated into a wide variety of foods that consumers purchase and consume on a daily basis. Through formulation support, technical assistance, stable supply, and product proposals tailored to local food cultures and applications, NOF works to expand adoption in conventional foods, nursing care foods, and products for healthcare and welfare facilities.
Risks related to excessive intake, allergens, and potentially misleading health claims are managed through raw material specifications, quality assurance processes, labeling reviews, appropriate usage guidance, and monitoring of complaints and adverse events.

Examples of NOF Initiatives

• NOF investigated the physiological functions of Policosanol and successfully obtained acceptance of a Food with Functional Claims (FFC) notification relating to skin health and liver function benefits.
• NOF investigated the physiological functions of Holy Basil Extract and successfully obtained acceptance of a Food with Functional Claims (FFC) notification relating to stress reduction benefits.
• By applying coating technologies, NOF has promoted the use of ingredients such as vitamins and minerals that present challenges in odor, taste, or stability, contributing to the development of stable and consumer-friendly nutritional supplements.
• NOF developed formulations with enhanced controlled-release properties through coating technologies, improving the bioavailability of nutrients such as vitamins.
• Using double-lipid coating technology, NOF developed probiotic formulations that protect beneficial microorganisms such as Bifidobacteria and improve their survival rate in the body.
• By utilizing high-protein beverage formulation technology, NOF developed and commercialized protein-rich beverages that remain stable over time and are easy to consume.
• NOF developed and commercialized functional bakery fats that help bread maintain a softer texture for longer, thereby contributing to food loss reduction.

NOF participates in committees of the Japan Margarine Shortening & Lard Industries Association and contributes to the following initiatives.

• Japan Margarine Shortening & Lard Industries Association, Technical Committee：
  　Guidelines for Establishing and Labeling Best-Before Dates for Processed Edible Oils and Fats (revised July 2024);
  　Reduction of Trans Fatty Acids (January 2019).
• Japan Margarine Shortening & Lard Industries Association, Materials Committee：
  　Voluntary Action Plan for Logistics Optimization and Productivity Improvement among Manufacturers of Processed Edible Oils and Fats (March 2024).

NOF shares knowledge gained through these committee activities internally and reflects relevant insights in its quality assurance and labeling procedures.

NOF supplies food-related products including food emulsifiers, processed oils and fats, and functional food ingredients to food and beverage manufacturers. NOF recognizes that its products may affect the health and safety of end consumers through customers’ product design, manufacturing processes, and labeling practices.
Potential adverse impacts include health risks associated with excessive intake of salt, sugars, fats, and calories; food safety risks from microorganisms, foreign matter, and chemicals; allergen contamination and labeling deficiencies; product quality variability and non-conformance; misleading health-related information; and insufficient communication regarding ingredients and usage conditions.
To mitigate these risks, NOF evaluates suppliers and implements controls covering raw material and product specifications, manufacturing and hygiene management, testing, lot control, traceability, and change management. NOF also provides customers with timely and appropriate information regarding product safety, allergens, nutritional content, storage conditions, and usage precautions.
In research and development, NOF leverages emulsification, dispersion, and stabilization technologies to develop food ingredients and formulations that support reduced fat, sugar, and sodium content. For functional and health-related products, NOF verifies scientific evidence concerning safety and efficacy and reviews labeling, advertising, and technical materials to avoid creating excessive expectations or misunderstanding among consumers.
Key performance indicators (KPIs) include serious food safety incidents, product recalls, major complaints, food safety training completion rates, and major supplier evaluation rates. When complaints or abnormalities occur, NOF identifies the scope of impact, conducts root-cause analyses, implements corrective and preventive actions, and uses the findings to strengthen quality assurance and continuous improvement.
Unless otherwise stated, the indicators and case studies disclosed herein cover the Food Business Segment of NOF Corporation on a standalone basis.

In FY2025, NOF recorded zero serious food safety incidents and zero product recalls ordered by regulatory authorities.

• Definition of a serious food safety incident：an incident with the potential to cause harm to human health.
• Definition of a product recall：a recall ordered by regulatory authorities due to legal or regulatory non-compliance (excluding voluntary recalls initiated by the Company).
• Definition of a major complaint：cases in which compensation payments or contractual penalties exceed JPY 10 million.

　
Corrective and preventive actions are also implemented in accordance with internal standards for quality issues that do not constitute legal violations.

NOF recognizes that food ingredients supplied by the Company may affect the health and safety of consumers, including vulnerable populations such as children, older adults, individuals with food allergies, and those with medical or dietary restrictions. Key risks include allergen contamination and cross-contact, inadequate labeling information, quality and safety concerns, excessive nutrient intake, and misunderstanding of health or functional claims.
To reduce these risks, NOF establishes ingredient specifications, manages suppliers, implements hygiene, foreign-material, and allergen controls, maintains lot traceability, and conducts root-cause analysis and recurrence prevention for product complaints. NOF also provides customers with product specifications, allergen information, analytical results, and usage precautions. In collaboration with customers, the Company develops and proposes ingredients that contribute to calorie reduction, and other health-oriented product solutions. 
Key food safety indicators and annual performance data are reported in SCR61/62.
NOF will continue to strengthen product development and information-sharing practices while taking into account impacts on consumers, including vulnerable populations.

The NOF Group is committed to providing accurate and transparent information regarding pharmaceutical-related materials. In our sales and customer communication activities, we provide materials that comply with applicable laws, industry codes, and internal policies and procedures. By providing appropriate and reliable information, we support informed customer decision-making and contribute to the quality assurance and stable supply of pharmaceuticals.
We prohibit false, misleading, or exaggerated claims, assertions regarding product performance, quality, or safety that lack scientific substantiation, and any communication that improperly downplays product risks. Technical documents, product information materials, exhibition materials, and website content are reviewed and approved by the relevant Research and Development, Intellectual Property, and Compliance functions before use.
We provide regular compliance training to employees engaged in sales, research, and development activities. When complaints, reports, or incidents involving inappropriate information are identified, we implement corrective measures such as revising or withdrawing materials, providing additional training to relevant personnel, and reviewing business processes.

NOF is committed to responsible marketing practices and provides accurate, balanced, and non-misleading product information in its sales and marketing activities, while taking consumer health, safety, and informed product choice into consideration.
NOF supplies commercial food products and food ingredients to manufacturers of bread, confectionery, processed foods, and health foods, while also producing OEM health supplements intended for direct consumer use.
Information regarding nutritional content, functionality, intended use, safety, and usage precautions is reviewed based on scientific evidence, applicable regulations, and internal standards.
Particular care is taken in reviewing health and nutrition claims as well as allergen-related labeling.
　

At a minimum, internal reviews confirm the following:
　

1. Claims comply with relevant laws, regulations, and internal standards.
2. Claims are supported by sufficient scientific and technical evidence.
3. Information is unlikely to mislead customers or consumers.
4. Conditions of use, scope of application, and limitations are clearly stated.
5. Appropriate processes are in place to address inquiries, complaints, and information updates after publication.
   　

In addition to review by the originating department, labeling materials are subject to further review by the Quality Assurance Department.
This policy also applies to industrial food ingredients, and NOF endeavors to provide accurate information so that customers can correctly communicate technical data, specifications, and product information.

NOF Group provides training and education on responsible sales and advertising practices, food labeling, advertising regulations, product information management, and health and nutrition claims as appropriate.
When laws, regulations, or guidelines are revised, relevant personnel participate in external seminars and training programs and share acquired knowledge throughout the organization.
In addition, advertising and public communications are reviewed by relevant functions, including R&D, legal, intellectual property, and corporate communications departments, to support responsible marketing practices.

The NOF Group recognizes compliance as a foundation that supports companies. We believe it is important to prevent violations of laws and regulations or the NOF Group Corporate Code of Ethics beforehand or take corrective actions at an early stage, so that they do not become more serious or prolonged, and set up a Compliance Hotline on our website for our business partners and other external parties.
To date, we have not received any reports on the following matters through the hotline.
　

Total number of substantiated complaints concerning breaches of customer privacy [Covered organizations：NOF Group]

• FY2025：0 cases
  　

Total number of customer data breaches, thefts, and losses [Covered organizations：NOF Group]

• FY2025：0 cases