Pack Corporation · TSE:3950
Pack — The Pack — FY2024 Earnings Presentation
50 slides from Pack's earnings presentation, Mar 3, 2025
Slide 1: Briefing Materials on Business Results for the Year Ended December 31, 2024
THE PACK CORPORATION Briefing Materials on Business Results for the Year Ended December 31, 2024 March 3, 2025
Slide 2: Contents
Contents Topics P. 3 1. Business Results for the Year Ended P. 4 December 31, 2024 2. Forecast of Business Results for the Year P. 19 Ending December 31, 2025 3. Progress on Sustainable Management P. 23 4. Progress on the Medium-Term P. 27 Management Plan 5. Reference Materials P. 35 Copyright© 2025
Slide 3: Topics
Topics The Japanese economy has gradually recovered due to spending by inbound tourists and robust capital investments. At the same time, it has been adversely affected by soaring prices attributable to rising energy costs and yen devaluation, creating lingering circumstances in which price increas
Slide 4: 1. Business Results for the Year Ended December 31, 2024
1. Business Results for the Year Ended December 31, 2024 4
Slide 5: Summary of Business Results
Summary of Business Results Consolidated net sales exceeded 100 billion yen, a new record high. (Million yen) Year ended Year ended December 31, 2023 December 31, 2024 Actual Actual YoY change Net sales 97,714 101,461 3.8% Operating profit 7,743 8,009 3.4% Ordinary profit 8,063 8,285 2.8% Profit att
Slide 6: Results by Segment
Results by Segment (Million yen) Year ended December 31, 2023 Year ended December 31, 2024 Actual Share Actual Share YoY change Net sales 97,714 100.0% 101,461 100.0% 3.8% Paper Products 69,399 71.0% 73,114 72.1% 5.4% Paper bags 29,653 30.3% 32,214 31.8% 8.6% Paper cartons 25,000 25.6% 25,882 25.5%
Slide 7: Factors Underlying Changes in Operating Profit
Factors Underlying Changes in Operating Profit Sales volumes grew due to rising average sales prices (Million yen) Year ended Year ended December 31, December 31, 2023 Higher Higher Higher raw Higher Higher Higher Higher other 2024 sales average material manufac- labor costs logistics selling, Opera
Slide 8: Trends by Segment
Trends by Segment Net sales and operating profit reached record highs (compared to the semi-annual period of the preceding fiscal year) (Million yen) Net sales (Paper Products segment) Net sales (Film Packaging segment) Net sales (other segments) Operating profit 7,743 8,009 8,000 5,972 6,000 4,144
Slide 9: Sales Composition
Sales Composition (Unit: %) 1.2 2.9 0.3 Year ended December 31, 28.1 16.6 5.0 5.6 4.9 2.0 3.0 3.8 26.6 2023 Year ended December 31, 28.7 17.1 5.0 5.0 4.6 2.1 2.7 3.4 26.2 2024 1.3 3.6 0.3 Food products Apparel Department stores Supermarkets and drug stores Convenience stores Pharmaceuticals and cosm
Slide 10: Paper Products Segment
Paper Products Segment Business environment Trends in net sales and operating profits Nationwide department store sales for 2024 were up 6.8% year on (Million yen) year, marking year-on-year increases for four consecutive years. The Net sales (left axis) Operating profit (right axis) number of tax
Slide 11: Paper Products Segment (Paper Bags)
Paper Products Segment (Paper Bags) Business environment Trends in net sales and operating profits Sales of high value added products for inbound tourists to Japan Net sales (left axis) Operating profit (right axis) (Million yen) have been strong thanks to yen devaluation. In response to declini
Slide 12: [Reference] Examples of Types of Paper Bag
[Reference] Examples of Types of Paper Bag Paper tote bag (with foldover) Bag with upper edges folded inside. The folded edges add strength to the bag, making reuse more likely. Paper tote bag (without foldover) Bag with its serrated upper edges. These highly cost-efficient bags are ideal for ma
Slide 13: Paper Products Segment (Paper Cartons)
Paper Products Segment (Paper Cartons) Business environment Trends in net sales and operating profits Demand in the domestic tourism market was high due to inbound tourists. Net sales (left axis) Operating profit (right axis) (Million yen) The food service industry, including the souvenir market
Slide 14: Paper Products Segment (Corrugated Boxes)
Paper Products Segment (Corrugated Boxes) Business environment Trends in net sales and operating profits Production volumes in the corrugated box industry for 2024 was (Million yen) 98.9% of last year’s level. Net sales (left axis) Operating profit (right axis) 15,000 3,000 By segment, consumpti
Slide 15: Film Packaging Segment
Film Packaging Segment Business environment Trends in net sales and operating profits As societal demand for eco-friendly products grows stronger, the (Million yen) shopping bags used to transport purchases are increasingly 20,000 2,000 becoming plastic-free. Net sales (left axis) Operating profit
Slide 16: Other Sectors
Other Sectors Business environment Trends in net sales and operating profits Sales promotion events intended to attract customers are well (Million yen) received. 20,000 4,000 Net sales (left axis) Operating profit (right axis) → Demand for gift-wrapping materials and sales-promotion materials is
Slide 17: Balance Sheet
Balance Sheet (Million yen) Year ended Year ended December 31, 2023 December 31, 2024 Actual Actual Assets 98,847 103,292 Current assets 59,080 60,043 Non-current assets 39,766 43,248 Property, plant, and equipment 27,401 30,166 Intangible assets 2,679 3,384 Investments and other assets 9,685 9,697
Slide 18: Cash Flow
Cash Flow (Million yen) Year ended Year ended Main items December 31, 2023 December 31, 2024 Actual Actual Cash flows from operating activities 4,443 7,101 Profit before income taxes 7,941 9,160 Depreciation and impairment losses 2,082 2,416 Cash flows used in investment activities -3,962 -5,436 Pur
Slide 19: 2. Forecast of Business Results for the Year Ending December 31, 2025
2. Forecast of Business Results for the Year Ending December 31, 2025 19
Slide 20: Forecasts of Business Results
Forecasts of Business Results The highest-ever year-end net sales and profit are forecast (Million yen) Year ended Year ending December 31, 2025 December 31, 2024 Forecasts of Actual Forecast YoY change Business Results Net sales 101,461 105,000 3.5% Operating profit 8,009 8,300 3.6% Ordinary profit
Slide 21: Trends in Consolidated Business Results
Trends in Consolidated Business Results (Million yen) Year ended Year ended Year ended Year ended Forecast for year December 31, December 31, December 31, December 31, ending December 2021 2022 2023 2024 31, 2025 Net sales 79,690 89,060 97,714 101,461 105,000 Operating profit 4,144 5,972 7,743 8,009
Slide 22: Major Factors Underlying Projected Changes in Operating Profit
Major Factors Underlying Projected Changes in Operating Profit Efforts to strengthen sales of paper products are expected to boost profits. (Million yen) Year ended Year ending December 31, December 31, 2024 Higher Higher Higher raw Higher Higher labor Higher Higher other 2025 sales average material
Slide 23: 3. Progress on Sustainable Management
3. Progress on Sustainable Management 23
Slide 24: Progress on Sustainable Management
Progress on Sustainable Management Materiality KPIs Five KPIs were established with a goal of achieving these KPIs by FY2030. The following shows action plans and actual results for the past four years: Materiality KPIs and action plans Targets for FY2030 and actual results for the past four years
Slide 25: Progress on Sustainable Management
Progress on Sustainable Management Materiality KPIs Materiality KPIs and action plans Targets for FY2030 and actual results for the past four years Contributing to Increasing the number of The Pack Forest® KPI environmental Environment Fund activities per year to 15 Number of activities per year 2
Slide 26: Progress on Sustainable Management
Progress on Sustainable Management Materiality KPIs Materiality KPIs and action plans Targets for the fiscal year ending March 31, 2030 and actual results for the past four years Co-creating brand Increasing the number of companies*2 (Companies) KPI 350 value with our supporting The Pack Forest® E
Slide 27: 4. Progress on the Medium-Term Management Plan
4. Progress on the Medium-Term Management Plan 27
Slide 28: Quantitative Progress on the Medium-Term Management Plan
Quantitative Progress on the Medium-Term Management Plan Slogan Evolution—Start of purpose-based management and Sustainable Management FY2025 targets Consolidated net sales: 107.0 billion yen; operating profit: 8.3 billion yen *Revised upward in February 2024 ROE: 8% or higher; ROIC: 8% or higher Ne
Slide 29: Quantitative Progress on the Medium-Term Management Plan
Quantitative Progress on the Medium-Term Management Plan Achieved significant growth in sales to the food products market and the e-commerce market, which are growing Overview Capital investments and sales activities propelled growth. In the field of paper bags, sales of delivery bags to the e
Slide 30: Progress on Growth Strategies in the Food Products Market
Progress on Growth Strategies in the Food Products Market Quantitative progress Overview of Progress (100 million yen) FY2023 FY2024 FY2025 YOY Expanded sales by leveraging our strengths and implementing strategies actual actual target change Sales volumes increased due to strong sales to existi
Slide 31: Progress on Growth Strategies in the e-commerce, Mail Order, and Logistics Industries
Progress on Growth Strategies in the e-commerce, Mail Order, and Logistics Industries Quantitative progress Overview of Progress (100 million yen) FY2023 FY2024 FY2025 YOY Various initiatives to respond to the growth and demand of the market have paid off, leading actual actual target change to si
Slide 32: Progress on Growth Strategies in the General Distribution Market, the Retail Market, and Other Markets
Progress on Growth Strategies in the General Distribution Market, the Retail Market, and Other Markets Quantitative progress Overview of Progress (100 million yen) FY2023 FY2024 FY2025 YOY Sales steadily grew as the Group’s base business amid changing external environments. actual actual target ch
Slide 33: Progress on Human Capital Strategy
Progress on Human Capital Strategy We continued undertaking initiatives to secure and make the most of the potential represented by human resources capable of supporting Company growth. Overview Revised systems and wage increases improved employment conditions. We enhanced human resources deve
Slide 34: Progress with Financial Strategies
Progress with Financial Strategies We have undertaken various initiatives to enhance our growth potential and corporate value. We implemented facility reinforcement plans for the food products and e-commerce markets and Overview have made additional investments to respond to demand. We impleme
Slide 35: 5. Reference Materials
5. Reference Materials ® THE PACK CORPORATION 35
Slide 36: Corporate Overview
Corporate Overview Name THE PACK CORPORATION Founded May 1952 (shares listed September 1991; listed on TSE Prime Market April 2022) Headquarters 9-3 Higashiobase 2-chome, Higashinari-ku, Osaka, Osaka Prefecture Lines of Planning, manufacturing and sale of paper bags, folding paper cartons, corrugate
Slide 37: The Pack Group (Eight Consolidated Subsidiaries)
The Pack Group (Eight Consolidated Subsidiaries) The Pack Corporation Headquarters Tokyo Head Office Osaka Plant Nara Plant Tokyo Plant Ibaraki Plant (Osaka) Building (All sites have earned ISO 9001 and ISO 14001 certification.) Domestic subsidiaries Keihin Tokushu Pack Takeyama Co., Nishinihon Prin
Slide 38: Trends in Net Sales and Ordinary Profit from Founding through 2024
Trends in Net Sales and Ordinary Profit (Consolidated) from the Company’s Founding (1952) through 2024 (Million yen) 100,000 10,000 Net sales (left axis) Ordinary profit (right axis) 90,000 9,000 80,000 8,000 70,000 7,000 60,000 6,000 50,000 5,000 40,000 4,000 30,000 3,000 20,000 2,000 10,000 1,000
Slide 39: Distribution Structure for Major Products
Distribution Structure for Major Products Consumers Main buyers Department Convenience Supermarkets Pharmaceuticals Home electronics e-commerce stores stores and drug stores Apparel and cosmetics Sundries Food products and home (mail order) installations etc. Raw materials makers Other parts and Pap
Slide 40: The Pack's Strengths (1)
The Pack’s Strengths (1) Strength Specifics (As of December 31, 2024) 1. A wide-ranging Transaction counterparties: approx. 14,000 companies customer base Food products, department stores, specialty stores, large retailers, general retailers, convenience stores, fast food, apparel, home electronic
Slide 41: The Pack's Strengths (2) Total packaging solutions
The Pack’s Strengths (2) Strength Specifics 2. A total packaging (Full support structure) Solutions proposed by joint efforts of the sales, research and planning, solutions provider engineering, and design sections (Thorough expertise and access to large body of information) Operating one of Jap
Slide 42: The Pack's Strengths (2)
The Pack’s Strengths (2) The Packaging Laboratories We operate three permanent showrooms—Tokyo, Osaka, and Fukuoka—which each feature a focus on packages. Exhibiting collections of packages from around the world, these showrooms help visitors grasp packaging trends and determine the specifications
Slide 43: The Pack's Strengths (3)
The Pack’s Strengths (3) Strength Specifics 3. Integrated manufacturing, sales, and The Pack Group Manufacturing logistics structure Printing plant Paper bag plant Direct sales structure Hokkaido Branch Aomori Sales Office Film packaging Paper cartons Niigata Sales Office plant plant Keihin Tokushu
Slide 44: The Pack's Strengths (4) (5)
The Pack’s Strengths (4) (5) Strength Specifics 4. Quality control Groupwide quality management systems are ISO 9001-certified. structure The Tokyo and Osaka plants have earned FSSC 22000 international food-safety management system certification. Based on a policy of improving customer satisfa
Slide 45: ESG Initiatives (1)
ESG Initiatives (1) Initiatives Specifics 1. Planning and Support social contribution activity of a client through our development team’s planning and package proposal proposing packages ～Case study involving planning and proposing the packaging for to support social Chikiri Shimizu Shoten Dashi (
Slide 46: ESG Initiatives (2)
ESG Initiatives (2) Initiatives Specifics 2. Environmental All plants and sites in Japan had earned ISO 14001 certification as of 2006. Continuing to reduce the use of materials appearing on the Pollutant Release and Transfer initiatives Register (PRTR) and in industrial waste Developing and e
Slide 47: ESG Initiatives (3)
ESG Initiatives (3) Initiatives Specifics In 2000, we established an independent The Pack Forest® Environment Fund and launched 3. Activities of The Pack volunteer activities to plant and thin forested areas. Currently we have nine planting sites across ® Forest Environment Japan. We contribute
Slide 48: ESG Initiatives (4)
ESG Initiatives (4) Initiatives Specifics 4. Human Resource In accordance with our Company Motto, “Passionate and Dedicated to Our Partnerships,” and our Corporate Philosophy, “We Value and Nurture People,” we are implementing Development and initiatives to contribute to employee welfare, includin
Slide 49: ESG Initiatives (5)
ESG Initiatives (5) Initiatives Specifics 5. Social contribution As part of our environmental education initiatives, in cooperation with the city of Higashi- Osaka, we organize hands-on manufacturing classes at elementary schools. activities Supporting the Kansai Philharmonic Orchestra Donatio
Slide 50: Note
Note This document is intended to provide information on management policies and business results for the second quarter of the year ended December 31, 2024. It is not intended to solicit investment in securities issued by the Company. In addition, this document was prepared based on data as of Dece