Slide 1: Briefing Materials on Business Results for the Second Quarter of the Year Ending December 31, 2025
THE PACK CORPORATION Briefing Materials on Business Results for the Second Quarter of the Year Ending December 31, 2025 September 19, 2025
Slide 2: Contents
Contents Business Environment and Topics P. 3 1. Business Results for the Second Quarter P. 4 of the Year Ending December 31, 2025 2. Forecast of Business Results for the P. 19 Year Ending December 31, 2025 3. Progress on the Medium-Term P. 23 Management Plan 4. Progress on Sustainable Management P.
Slide 3: Business Environment and Topics
Business Environment and Topics Business environment ◆ Despite the modest economic recovery, consumer spending remained weak compared with growth in wages and income due to the chronic price increases of food and other nondurables. ◆ Companies in the distribution and retail industries increasingly s
Slide 4: 1. Business Results for the Second Quarter of the Year Ending December 31, 2025
1. Business Results for the Second Quarter of the Year Ending December 31, 2025 4
Slide 5: Summary of Business Results
Summary of Business Results Despite new record-high net sales, active investments in facilities and human resource resulted in lower profits. (Million yen) Second quarter of Second quarter of year ended December 31, 2024 year ending December 31, 2025 Actual Actual YoY change Net sales 46,617 47,385
Slide 6: Results by Segment
Results by Segment (Million yen) Second quarter of year ended Second quarter of year ending December 31, 2025 December 31, 2024 Actual Share Actual Share YoY change Net sales 46,617 100.0% 47,385 100.0% 1.6% Paper Products 33,322 71.5% 34,881 73.6% 4.7% Paper bags 14,279 30.6% 14,485 30.6% 1.4% Pape
Slide 7: Factors Underlying Changes in Operating Profit
Factors Underlying Changes in Operating Profit Sales volume grew thanks to cross-selling, but profit shrunk due to prior investments. (Million yen) Second Second Higher Higher Higher raw Higher Higher Higher Higher other quarter of quarter of sales average material manufac- labor logistics selling,
Slide 8: Trends by Segment
Trends by Segment Paper products contributed significantly to net sales (Million yen) Net sales (Paper Products segment) Net sales (Film Packaging segment) Net sales (other segments) Operating profit 3,525 2,976 2,863 4,000 2,044 3,000 1,229 1,459 2,000 50,000 46,617 47,385 1,000 44,878 0 6,947 6,16
Slide 9: Sales Composition
Sales Composition 1.3 3.5 0.3 Second quarter of year ended (Unit: %) December 31, 28.3 16.3 4.9 5.4 4.7 2.3 2.8 3.8 26.5 2024 Second quarter of year ended December 31, 29.3 16.5 4.6 3.8 4.8 2.2 3.2 3.3 26.4 2025 1.4 4.3 0.3 Food products Apparel Department stores Supermarkets and drug stores Conveni
Slide 10: Paper Products Segment
Paper Products Segment <Cross-selling in growth markets boosted profit> Trends in net sales and operating profits Business environment (Million yen) Net sales (left axis) Operating profit (right axis) ◆ Net sales at department stores nationwide declined for five consecutive months. Due to the linger
Slide 11: Paper Products Segment (Paper Bags)
Paper Products Segment (Paper Bags) <Strong, thanks to diverse range of products and Trends in net sales and operating profits sales channels> Net sales (left axis) Operating profit (right axis) (Million yen) Business environment 14,279 14,485 ◆ Intensifying competition within the industry and decli
Slide 12: [Reference] Examples of Types of Paper Bag
[Reference] Examples of Types of Paper Bag ◼ Paper bag with turned-over top Paper bag with turned-over top. The turned-over top add strength to the bag, making reuse more likely. ◼ Paper bag without turned-over top Paper bag with serrated top. These highly cost-efficient bags are ideal for mass prod
Slide 13: Paper Products Segment (Paper Cartons)
Paper Products Segment (Paper Cartons) <Strong sales of paper cartons for the food Trends in net sales and operating profits products market> Net sales (left axis) Operating profit (right axis) (Million yen) Business environment 15,000 3,000 ◆ The food service industry, including fast food restauran
Slide 14: Paper Products Segment (Corrugated Boxes)
Paper Products Segment (Corrugated Boxes) <Sales grew thanks to a range of products Trends in net sales and operating profits covering a wide range of markets> Net sales (left axis) Operating profit (right axis) (Million yen) Business environment ◆ Production volumes in the corrugated boxes industry
Slide 15: Film Packaging Segment
Film Packaging Segment <Positive flexible packaging sales trends> Trends in net sales and operating profits Business environment Net sales (left axis) Operating profit (right axis) (Million yen) ◆ In response to unchanging societal demand for eco-friendliness, shopping bags used to transport purchas
Slide 16: Other Sectors (PAS, sewn products, and other products)
Other Sectors (PAS (Pack Assortment Service System), sewn products, and other products) <Lower results due to specific contracts in the Trends in net sales and operating profits distribution and retail markets> Net sales (left axis) Operating profit (right axis) (Million yen) Business environment 10
Slide 17: Balance Sheet
Balance Sheet (Million yen) Year ended Second quarter of year ended December 31, 2024 December 31, 2025 Actual Actual Assets 103,292 98,532 Current assets 60,043 55,354 Non-current assets 43,248 43,177 Property, plant, and equipment 30,166 30,342 Intangible assets 3,384 3,894 Investments and other a
Slide 18: Cash Flow
Cash Flow (Million yen) Second quarter of year ended Second quarter of year ended December 31, 2024 December 31, 2025 Main items Actual Actual Cash flows from operating activities 6,301 5,435 Profit before income taxes 4,381 3,524 Depreciation 1,006 1,403 Cash flows used in investment activities -97
Slide 19: 2. Forecast of Business Results for the Year Ending December 31, 2025 (Revised)
2. Forecast of Business Results for the Year Ending December 31, 2025 (Revised) 19
Slide 20: Forecasts of Business Results
Forecasts of Business Results New record-high net sales were set; the pressing issue is profits. (Million yen) Year ended Year ending December 31, 2025 December 31, 2024 (released August 12) Forecasts of Actual Forecast YoY change Business Results Net sales 101,461 103,000 1.5% Operating profit 8,00
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 97,714 101,461 103,000 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 promote further sales expansion and productivity improvement (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 manu
Slide 23: 3. Progress on the Medium-Term Management Plan
3. Progress on the Medium-Term Management Plan 23
Slide 24: Quantitative Progress on the Medium-Term Management Plan
Quantitative Progress on the Medium-Term Management Plan 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 ◆ All initiatives were implemented as planned. We expect to achieve the full-yea
Slide 25: Progress Status of Quantitative Targets by Market and Product Type
Progress Status of Quantitative Targets in Medium-Term Management Plan (by market and by product type) ◆ Thanks to production capacity enhancements, profits increased for paper cartons in the food products market and for paper bags and corrugated boxes in the e-commerce market. Overview ◆ In the gen
Slide 26: 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) FY2024 FY2025 semi-annual ◆ Efforts are underway to create order-receiving opportunities through period Semi-annual, Full-year, various solutions proposals. YOY change (actual) actu
Slide 27: 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) FY2024 FY2025 semi-annual ◆ Orders have been favorable due to capital investments and supply chain period Semi-annual, Full-year, actual YOY change plann
Slide 28: Progress on Growth Strategies in the General Distribution and Retail Markets
Progress on Growth Strategies in the General Distribution Market, the Retail Market, and Other Markets Quantitative progress Overview of Progress (100 million yen) FY2024 FY2025 semi-annual ◆ Profits in the distribution and retail market declined due to certain period Semi-annual, Full-year, YOY cha
Slide 29: Progress on Human Capital Strategy
Progress on Human Capital Strategy ◆ Continuation of efforts to secure and develop human resources and maximize corporate value Overview • Promoting recruitment, wage increases, and workplace improvements • Strengthening junior employee education and DX-based productivity improvements Securing diver
Slide 30: Progress with Financial Strategies
Progress with Financial Strategies ◆ Implement plans while responding to environmental changes in markets • Efforts to strengthen production capacity for mainstream products and M&A activities targeting Overview growth markets have proceeded according to plans. • New initiatives will be addressed to
Slide 31: 4. Progress on Sustainable Management
4. Progress on Sustainable Management
Slide 32: Progress on Sustainable Management Materiality KPIs
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 33: Progress on Sustainable Management Materiality KPIs
Progress on Sustainable Management Materiality KPIs Materiality KPIs and action plans Targets for FY2030 and actual results for the past four years ③ Contributing Number of activities per year ◆ Increasing the number of The Pack Forest® KPI Number of participants per year to 20 600 Environment Fund
Slide 34: Progress on Sustainable Management Materiality KPIs; Communication with stakeholders
Progress on Sustainable Management Materiality KPIs Materiality KPIs and action plans Targets for FY2030 and actual results for the past four years ⑤ Co-creating ◆ Increasing the number of companies*2 350 KPI (Companies) brand value with supporting The Pack Forest® Environment 300 our customers 300
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 (Nine Consolidated Subsidiaries)
The Pack Group (Nine 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 Nikko Print Pack Takeyama Nishiniho
Slide 38: Trends in Net Sales and Ordinary Profit from Founding (1952) 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 Apparel Sundries Food products and home stores stores and drug stores and cosmetics installations (mail order) etc. Raw materials makers Other parts and mat
Slide 40: The Pack's Strengths (1)
The Pack’s Strengths (1) Strength Specifics (As of June 30, 2025) 1. A wide-ranging ◆ Transaction counterparties: approx. 15,000 companies customer base Food products, department stores, specialty stores, large retailers, general retailers, convenience stores, fast food, apparel, home electronics ma
Slide 41: The Pack's Strengths (2)
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 Niigata Sales Office Aomori Sales Office Keihin Tokushu Printing Corp. Film packaging plant Paper
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 ◆ Sales begin for KAISONAL® (eco-friendly next-generation oil-resistant coating). proposing packages to support social KAISONAL® is a coating agent made from seaweed-derived raw material to meet increasing demands for takeout food packages an
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, 2025. It is not intended to solicit investment in securities issued by the Company. In addition, this document was prepared based on data as of June