Nippon Paper Industries Co., Ltd. · TSE:3863

Nippon Paper Industries — H1 FY2026/3 Earnings Presentation

38 slides from Nippon Paper Industries's earnings presentation, Nov 6, 2025

1. Slide 1: 1st Half FY2026/3 Financial Results & Strategy Presentation

   1ST HALF FY2026/3 FINANCIAL RESULTS & STRATEGY PRESENTATION November 6, 2025

2. Slide 2: Table of Contents

   Table of Contents Summary of Financial Results for 1st HALF 01 FY2026/3 04 Summary 1) 1st HALF FY2026/3 Financial Results 2) FY2026/3 Forecast 02 Initiatives for FY2026/3 05 Reference Materials 1) Basic Policy and Current Situation 2) Initiatives for FY2026/3 03 Toward the Next Medium-Term Business

3. Slide 3: Summary of Financial Results for 1st Half FY2026/3

   01 Summary of Financial Results for 1st HALF FY2026/3 1) 1st HALF FY2026/3 Financial Results 2) FY2026/3 Forecast Copyright © NIPPON PAPER INDUSTRIES CO., LTD. All rights reserved

4. Slide 4: 1st Half FY2026/3 Financial Results: Consolidated Statement

   1st HALF FY2026/3 Financial Results Consolidated Statement (¥billion) 1st Half 1st Half Y on Y changes FY2025/3 FY2026/3 Results Results Amount % Net sales 584.5 589.2 4.7 0.8% Operating income 2.1 9.0 6.9 338.0% Ordinary income 1.8 8.5 6.7 377.5% Net income * -12.4 0.8 13.2 - * Profit attributable

5. Slide 5: 1st Half FY2026/3 Financial Results: Results by Segment

   1st HALF FY2026/3 Financial Results Results by Segment (¥billion) Net sales Operating income 1st Half 1st Half 1st Half 1st Half Y on Y Y on Y FY2025/3 FY2026/3 FY2025/3 FY2026/3 changes changes Results Results Results Results Paper and 283.1 274.2 -8.9 3.5 -1.5 -5.0 Paperboard Daily-Life Products 2

6. Slide 6: 1st Half FY2026/3 Financial Results: Factors for Changes

   1st HALF FY2026/3 Financial Results Factors for Changes (¥billion) Paper and Paperboard Business Daily-Life Products Business Volume, 1.5 -1.6 － 3.1 － Sales Price Wood Chips -0.2, Wastepaper -2.3, Pulp 0.2 Raw material and fuel prices -0.7 -0.3 Oil -0.3, Coal 2.7, LNG 0.2, Chemicals, etc. -0.6 -0.4

7. Slide 7: Paper and Paperboard Business

   1st HALF FY2026/3 Financial Results Paper and Paperboard Business (¥billion) Net sales Operating income 1st Half 1st Half 1st Half 1st Half Y on Y Y on Y FY2025/3 FY2026/3 FY2025/3 FY2026/3 changes changes Results Results Results Results 283.1 274.2 -8.9 3.5 -1.5 -5.0 ● Domestic ・Sales volume of pap

8. Slide 8: Daily-Life Products Business

   1st HALF FY2026/3 Financial Results Daily-Life Products Business (¥billion) Net sales Operating income 1st Half 1st Half 1st Half 1st Half Y on Y Y on Y FY2025/3 FY2026/3 FY2025/3 FY2026/3 changes changes Results Results Results Results Liquid packaging carton etc. -0.6, Chemical 0.3, Domestic 110.3

9. Slide 9: Energy Business; Wood Products and Construction Related Business

   1st HALF FY2026/3 Financial Results Energy Business (¥billion) Net sales Operating income ・Electricity sales volume decreased, 1st Half 1st Half 1st Half 1st Half resulting in a decrease in revenue year Y on Y Y on Y on year, but operating profit was at the FY2025/3 FY2026/3 FY2025/3 FY2026/3 change

10. Slide 10: Consolidated Balance Sheets

    1st Half FY2026/3 Financial Results Consolidated Balance Sheets (¥billion) * Adjusted Net D/E ratio= (Net interest-bearing debt- Equity－type debt)/(Shareholders' Equity + Equity-type debt) Equity-type debt : The amount of debt procured by hybrid loans that has been recognized as equity credit by rat

11. Slide 11: FY2026/3 Forecast: Consolidated Statement

    FY2026/3 Forecast Consolidated Statement (¥billion) FY2025/3 FY2026/3 FY2026/3 Amount of Results Initial forecast Revised forecast increase/ （a） （b） decrease Net sales 1,182.4 1,205.0 1,200.0 -5.0 Operating income 19.7 34.0 30.0 -4.0 Ordinary income 15.5 26.0 24.0 -2.0 Net income * 4.5 12.0 10.0 -2.

12. Slide 12: Results and Forecasts by Business Segment

    FY2026/3 Forecast Results and Forecasts by Business Segment (¥billion) Net sales Operating income FY2025/3 FY2026/3 FY2026/3 FY2025/3 FY2026/3 FY2026/3 Results Initial Revised Results Initial Revised (b)-(a) (b)-(a) forecast forecast forecast forecast （a） （b） （a） （b） Paper and Paperboard 565.9 555.0

13. Slide 13: FY2026/3 Forecast: Major Assumptions

    FY2026/3 Forecast Major Assumptions ■ Annual change in domestic sales volume (YoY) ■Major raw material prices and FOREX 2nd Half Full year 2nd Half Newsprint 2% 4% FOREX (USD) JPY 152/USD Printing -5% -1% FOREX +0.65 billion yen/year due to 1 yen sensitivity appreciation against USD Business -3% -4%

14. Slide 14: Forecast for Changes (FY2026/3 Forecast vs FY2025/3 Results)

    FY2026/3 Forecast Forecast for Changes (FY2026/3 Forecast vs FY2025/3 Results) (¥billion) Paper and Paperboard Business Daily-Life Products Business Volume, Sales Price 9.4 1.2 － 8.2 － Wood chips -1.0, Wastepaper -2.0, Pulp 0.2, Wood chips -0.1, Raw material and fuel prices 1.3 0.8 Oil -1.0, Coal 5.

15. Slide 15: Factors for Changes (H1 Results vs. H2 Forecast)

    FY2026/3 Forecast Factors for Changes (H1 FY2026/3 Results vs. H2 FY2026/3 Forecast) (¥billion) Domestic +2.4 Overseas +2.8 1st Half Paper and Daily-Life Products Energy Wood Products Others 2nd Half FY 2026/3 Result Paperboad and Construction FY 2026/3 Forecast Related ◼ Paper and Paperboard ◼ Dail

16. Slide 16: Initiatives for FY2026/3

    02 Initiatives for FY2026/3 1) Basic Policy and Current Situation 2) Initiatives for FY 2026/3 Strengthening the Foundation of the Paper and Paperboard Business Opal’s Profitability Improvement Management That is Conscious of the Cost of Capital and Stock Price Copyright © NIPPON PAPER INDUSTRIES CO

17. Slide 17: Basic Policy and Current Situation

    Basic Policy and Current Situation Executing profit improvement initiatives in response to evolving business conditions and establish a foundation for the upcoming medium-term business plan. Progress Toward Medium-Term Business Plan 2025 FY2026/3 Initiatives Medium- FY2026/3 FY2026/3 Term Initial Re

18. Slide 18: Strengthening the Foundation of the Paper and Paperboard Business

    Strengthening the Foundation of the Paper and Paperboard Business Implementing cost reductions and price adjustments in response to rising labor & logistics costs. Reorganizing production system to maintain operating rates and secure profits as a core business. ◼ Working on price adjustments for pap

19. Slide 19: Opal's Profitability Improvement

    Opal’s Profitability Improvement Operational stabilization in Maryvale Mill has proceeded as planned and resulted in costs reduction. Packaging business challenges sluggish economy in Australia. （A$ Million） Operating Profit 2024 Result 2025 Forecast in May 2025 2025 Revised Forecast 2023 Result 1H

20. Slide 20: Management Conscious of the Cost of Capital and Stock Price

    Management That is Conscious of the Cost of Capital and Stock Price Pilot implementation of a capital efficiency management system in FY2026/3 for PBR Improvement Targeting full-scale operation from the next medium-term management plan ◼ Pilot introduction of group-wide ROIC on a consolidated basis,

21. Slide 21: Toward Next Medium-Term Business Plan

    03 Toward Next Medium-Term Business Plan 1) Expansion of Business Domain in the Next Long-Term Vision and Medium-Term Plan 2) Strategic Direction for Each Business in the Next Medium-Term Business Plan Copyright © NIPPON PAPER INDUSTRIES CO., LTD. All rights reserved

22. Slide 22: Expansion of Business Domain in the Next Long-Term Vision and Medium-Term Plan

    Expansion of Business Domain in the Next Long-Term Vision and Medium-Term Plan Expand business domain by forecasting and backcasting Backcast Business domain to explore in the next long- NPG’s Business Chain term vision and medium-term plan Social issues in 2050 Agriculture, Forestry and • Global po

23. Slide 23: Direction of Each Business in the Next Medium-Term Business Plan

    Direction of Each Business in the Next Medium-Term Business Plan The growth pillars are profit expansion in Daily-Life Product Business* and growth in Forest and Wood-Related Business. Leveraging forest resources, we aim to contribute to a circular economy and achieve sustainable corporate growth. ・

24. Slide 24: Summary

    04 Summary Copyright © NIPPON PAPER INDUSTRIES CO., LTD. All rights reserved

25. Slide 25: Today's Summary

    Today's Summary ◼ Progress in the first half of FY2026/3 was largely on track. ◼ Revision of the FY2026/3 forecast, reflecting the current business environment. ◼ In the second half of FY2026/3, we will appropriately respond to changes in business environment. • Firm execution of price adjustments i

26. Slide 26: Reference Materials

    05 Reference Materials Copyright © NIPPON PAPER INDUSTRIES CO., LTD. All rights reserved

27. Slide 27: Sales Volume (Paper & Paperboard)

    Sales Volume (Paper & Paperboard) * (volume: ’000 tonnes) * Sales Volume Total of Nippon Paper Industries Co., Ltd., Nippon Paper Papylia Co., Ltd., Nippon Paper Crecia Co., Ltd., and Shin Tokai Paper Co., Ltd. (excluding sanitary paper) Copyright © NIPPON PAPER INDUSTRIES CO., LTD. All rights reser

28. Slide 28: Capital expenditure, Depreciation

    Capital expenditure, Depreciation Capital expenditure * Depreciation (¥ billion) (¥ billion) 86.0 70.6 66.5 66.3 64.2 66.6 65.0 61.0 63.4 60.3 58.1 60.7 60.4 58.7 57.9 52.4 28.4 32.8 31.5 22.9 19/3 20/3 21/3 22/3 23/3 24/3 25/3 25/3 26/3 26/3 19/3 20/3 21/3 22/3 23/3 24/3 25/3 25/3 26/3 26/3 2Q 2Q F

29. Slide 29: Net Sales Trends by Business Segment

    Net Sales Trends by Business Segment (¥billion) FY2025/3 FY2026/3 FY2026/3 Q1 Q2 Q3 Q4 Q1 Q2 H1 Results H2 Forecast Paper and Paperboard 141.9 141.2 146.3 136.5 138.2 136.0 274.2 280.8 Daily-Life Products 108.3 116.4 118.4 114.8 116.7 122.5 239.2 250.8 Energy 11.5 13.3 10.7 12.8 10.6 12.2 22.8 22.2

30. Slide 30: Operating Income Trends by Business Segment

    Operating Income Trends by Business Segment (¥billion) FY2025/3 FY2026/3 FY2026/3 Q1 Q2 Q3 Q4 Q1 Q2 H1 Results H2 Forecast Paper and Paperboard 2.4 1.1 3.3 1.5 -0.9 -0.6 -1.5 6.5 Daily-Life Products -2.0 -7.1 2.2 0.8 3.0 -0.6 2.4 7.6 Energy 0.5 1.2 0.3 1.6 0.6 1.1 1.7 1.3 Wood Products and Construct

31. Slide 31: Reference: Domestic Shipment and Import / Export Volume

    Reference Domestic Shipment and Import / Export Volume (Paper& Paperboard, FY2026/3 H1 Results) (volume: ’000 tonnes) * "Bitoko-shi" paper is included in coated paper. Source: Japan Paper Association, Trade Statistics of Japan Copyright © NIPPON PAPER INDUSTRIES CO., LTD. All rights reserved 31

32. Slide 32: Reference (Domestic)

    Reference (Domestic) Domestic shipment of paper industry (YOY) Production of sanitary paper (YOY) Imports of Coated Paper 120% 130% (‘000 tons) Household tissue 15 Paper Paperboard 120% Toilet paper rolls 110% Towel paper 110% 10 100% 100% 90% 5 90% 80% 80% 0 Oct-22 Apr-23 Oct-23 Apr-24 Oct-24 Apr-2

33. Slide 33: Reference (Domestic): Price trends and inventory

    Reference (Domestic) Price trends by products Coated paper inventory Containerboard inventory (‘000 tons) (‘000 tons) CY 2020＝100 Manufacturers Merchants Manufacturers 160 Coated paper Linerboard 600 800 Household tissue 150 700 500 600 140 400 500 130 300 400 120 300 200 110 200 100 100 100 90 0 0

34. Slide 34: Reference (Domestic, Global)

    Reference (Domestic, Global) ONP OCC Crude oil (¥/kg) (¥/kg) (US$/BL) Domestic Export Domestic Export 50 40 120 100 40 30 80 30 20 60 20 40 10 10 20 0 0 0 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 Apr-25 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 Apr-25 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 Apr-25 Source: Wastepaper

35. Slide 35: Promoting Green Strategies

    Promoting Green Strategies Support the domestic forestry industry and expand domestic wood business Stable procurement of domestic raw material Supporting the forestry industry through "logging, using, planting, and nurturing” woods Domestic procurement rate in raw material for O2 papermaking (FY25/

36. Slide 36: Promoting Green Strategies: Overseas Afforestation

    Promoting Green Strategies Expand overseas afforestation business using breeding and propagation technologies Expand earnings from afforestation business by improving productivity Further advancement of breeding and Wood Products and Construction Related Business propagation technologies Operating I

37. Slide 37: GHG Emission Reduction Targets, Results and Plans

    GHG Emission Reduction Targets, Results and Plans (million t-CO2 ) Measures for 13% reduction FY2025-2030 8.45 Improve production efficiency by 2013-2024 4% reorganization of production systems Results 6.79 Coal boiler shutdown along with the -41% 2030 Target reorganization of production system 5% 5

38. Slide 38: The Nippon Paper Group aims to contribute to better living and cultural progress

    The NIPPON PAPER GROUP aims to contribute to better living and cultural progress everywhere it does business. <Disclaimer> Any statements in this presentation document, other than those of historical fact, are forward-looking statements about the future performance of Nippon Paper Industries Co., Lt

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