Japan Pulp And Paper Co. Ltd. · TSE:8032

Japan Pulp And Paper — FY2024 Earnings Presentation

64 slides from Japan Pulp And Paper's earnings presentation, May 29, 2025

  1. Slide 1: FY2024 Financial Results Overview

    FY2024* Financial Results Overview *Fiscal year ended March 31, 2025 Prime Market Tokyo Stock Exchange Securities Code: 8032 May 29, 2025 Japan Pulp & Paper Co., Ltd.

  2. Slide 2: Contents

    Contents I FY2024 Financial Results Overview p.2 II FY2025 Financial Results Forecast p.16 III Overview of OVOL Vision 2030 p.22 and OVOL Medium-term Business Plan 2026 IV Progress of OVOL Medium-term Business Plan 2026 p.30 V Appendix p.51 Copyright © Japan Pulp & Paper Co., Ltd. 2025 1

  3. Slide 3: FY2024 Financial Results Overview

    I FY2024 Financial Results Overview Copyright © Japan Pulp & Paper Co., Ltd. 2025 2

  4. Slide 4: Financial Highlights

    I FY2024 Financial Results Overview Financial Highlights • Revenue increased year on year due to higher revenues in the Japan Wholesaling, Non-Japan Wholesaling, Paper Manufacturing & Processing, and Real Estate Leasing segments (103.8% compared to the previous fiscal year). • Ordinary profit decrea

  5. Slide 5: Consolidated Financial Results Overview

    I FY2024 Financial Results Overview Consolidated Financial Results Overview Revenue increased in all business segments except Raw Materials & Environment. Ordinary profit decreased due to increased personnel expenses and logistics costs, as well as the expenses relating to overseas M&As. (Millions o

  6. Slide 6: Financial Results by Segment

    I FY2024 Financial Results Overview Financial Results by Segment Strengths of a stable revenue base: While profits in Japan Wholesaling and Non-Japan Wholesaling declined significantly, the decline in consolidated ordinary profit was limited due to increased profits in Raw Materials & Environment. C

  7. Slide 7: Japan Wholesaling: Overview 1

    I FY2024 Financial Results Overview Japan Wholesaling: Overview 1 Revenue: In the paper business, sales volume declined due to the progress of digitalization and a decrease in publications and commercial printing. However, paperboard and functional materials offset this decline, resulting in a year-

  8. Slide 8: Japan Wholesaling: Overview 2

    I FY2024 Financial Results Overview Japan Wholesaling: Overview 2 For FY2024, year-on-year domestic demand in Japan* was 97.1% for paper, 100.1% for paperboard, and 98.7% for paper and paperboard combined. *Domestic demand in Japan = shipments + imports (Japan Paper Association and Japan Paper Impor

  9. Slide 9: Non-Japan Wholesaling: Overview 1

    I FY2024 Financial Results Overview Non-Japan Wholesaling: Overview 1 Revenue: Increased year on year due to the completion of inventory adjustment in the U.S. market and increased sales resulting from M&As in Germany and France, as well as foreign currency translation Ordinary profit: Decreased yea

  10. Slide 10: Non-Japan Wholesaling: Overview 2

    I FY2024 Financial Results Overview Non-Japan Wholesaling: Overview 2 Demand for paper and paperboard remained weak in our key markets in 2024, particularly in the U.K. and Australia, due to digitalization and the impact of economic trends. The situation in the U.S. was stable, partly due to a recov

  11. Slide 11: Paper Manufacturing & Processing: Overview 1

    I FY2024 Financial Results Overview Paper Manufacturing & Processing: Overview 1 Revenue: Increased year on year due to higher unit sales prices of recycled household paper. Sales volumes in the corrugated container business and recycled household paper business remained consistent year on year. Ord

  12. Slide 12: Paper Manufacturing & Processing: Overview 2

    I FY2024 Financial Results Overview Paper Manufacturing & Processing: Overview 2 Japanese domestic demand for household paper products (e.g., toilet paper) increased slightly to 101.7% year on year in FY2024 Domestic demand = shipments + imports Nihon Kateishi Kougyokai (Japan Household Paper Manufa

  13. Slide 13: Raw Materials & Environment: Overview 1

    I FY2024 Financial Results Overview Raw Materials & Environment: Overview 1 Revenue: Decreased year on year due mainly to lower sales volume of recovered paper Ordinary profit: Increased year on year due to higher sales of fuel for woody biomass power plants and increased selling prices Segment Over

  14. Slide 14: Raw Materials & Environment: Overview 2

    I FY2024 Financial Results Overview Raw Materials & Environment: Overview 2 Revenue and Ordinary Profit on a Non-consolidated Basis and by Business (Within Segment) Revenue (Billions of yen) Non-consolidated 9.3% Year-on-Year Year-on-Year FY2023 FY2024 Change Comparison Renewable Energy 22.1% 39.1%

  15. Slide 15: Real Estate Leasing: Overview

    I FY2024 Financial Results Overview Real Estate Leasing: Overview Revenue/Ordinary profit Segment Overview Revenue Ordinary profit (Billions of yen) Revenue: Increased year on year due to continued high occupancy 4.2 4.1 4.2 of major properties. Ordinary Profit: Increased year on year due to an incr

  16. Slide 16: Ordinary Profit: Analysis of Changes in Profit

    I FY2024 Financial Results Overview Ordinary Profit: Analysis of Changes in Profit Ordinary profit decreased by JPY 931 million, 94.4% compared to the previous fiscal year Increase in personnel expenses and (Millions of yen) logistics costs Increase in personnel expenses and -672 logistics costs and

  17. Slide 17: FY2025 Financial Results Forecast

    II FY2025 Financial Results Forecast Copyright © Japan Pulp & Paper Co., Ltd. 2025 16

  18. Slide 18: Consolidated Financial Results Forecast

    Ⅱ FY2025 Financial Results Forecast Consolidated Financial Results Forecast The forecasts for ordinary profit and profit attributable to owners of the parent are 98.0% and 112.3% respectively, compared to FY2024. (Millions of yen) FY2024 FY2025 Year-on-Year Results Forecasts Comparison Operating Pro

  19. Slide 19: Financial Results Forecast: Underlying Assumptions

    Ⅱ FY2025 Financial Results Forecast Financial Results Forecast: Underlying Assumptions Based on expected higher sales volumes in markets outside of Japan and stable selling prices in the Japanese market, ordinary profit is forecast to be JPY 15.5 billion. Segment Outlook  Demand for paper is expect

  20. Slide 20: FY2025 Forecasts by Segment

    Ⅱ FY2025 Financial Results Forecast FY2025 Forecasts by Segment Ordinary profit forecasts by segment (Millions of yen) Medium-term FY2024 FY2025 Year-on-Year Business Plan 2026 Results Forecast Comparison Final Year Plan (FY2026) Japan Wholesaling 6,000 5,800 96.7% 7,000 Non-Japan Wholesaling 3,195

  21. Slide 21: FY2025 Forecasts by Segment

    Ⅱ FY2025 Financial Results Forecast FY2025 Forecasts by Segment Ordinary profit trends by segment (Millions of yen) Japan Wholesaling Non-Japan Wholesaling Paper Manufacturing & Processing Medium-term Business Plan 2026 Final Year Target: 7,500 中計2026最終年度⽬標7,500 Medium-term Business Plan 2026 Medium

  22. Slide 22: Dividends (Records and Forecasts)

    Ⅱ FY2025 Financial Results Forecast Dividends (Records and Forecasts) Annual dividend was JPY 25 per share in FY2024, marking the fourth consecutive fiscal year of dividend increases. The forecast for FY2025 is JPY 28 per share. JPY 28 (Forecast) JPY 25 41.2% 40.7% 40.0% 40.6% 14 30.1% Dividend JPY

  23. Slide 23: Overview of OVOL Vision 2030 and OVOL Medium-term Business Plan 2026

    III Overview of OVOL Vision 2030 and OVOL Medium-term Business Plan 2026 Copyright © Japan Pulp & Paper Co., Ltd. 2025 22

  24. Slide 24: OVOL Vision 2030: Paper, and beyond

    III Overview of OVOL Vision 2030 and OVOL Medium-term Business Plan 2026 OVOL Vision 2030: “Paper, and beyond” We will refine our know-how and network cultivated over more than 170 years in the The World’s Leading Paper paper and paperboard wholesaling business to become recognized as the world’s Di

  25. Slide 25: Sustainable Corporate Group

    III Overview of OVOL Vision 2030 and OVOL Medium-term Business Plan 2026 Positioning of OVOL Medium-term Business Plan 2026 Sustainable Corporate Group Three years of developing specific mechanisms and measures to create economic and social value toward the realization of OVOL Vision 2030 FY2030 Con

  26. Slide 26: Formulate and implement measures

    III Overview of OVOL Vision 2030 and OVOL Medium-term Business Plan 2026 Fundamental Principles of OVOL Medium-term Business Plan 2026 Aim to achieve OVOL Vision 2030 by formulating and implementing measures based on three fundamental principles OVOL Medium-term Business Plan 2026 Three Fundamental

  27. Slide 27: OVOL Medium-term Business Plan 2026: Consolidated Financial Targets

    III Overview of OVOL Vision 2030 and OVOL Medium-term Business Plan 2026 OVOL Medium-term Business Plan 2026: Consolidated Financial Targets • Achieve consolidated ordinary profit of JPY 22.0 billion surpassing the previous record high • Realize ROE of 8% or more, ROA of 5% or more, and ROIC of 7% o

  28. Slide 28: OVOL Medium-term Business Plan 2026: Consolidated Ordinary Profit Analysis

    III Overview of OVOL Vision 2030 and OVOL Medium-term Business Plan 2026 OVOL Medium-term Business Plan 2026: Consolidated Ordinary Profit Analysis FY2026 Ordinary Profit Target Change Analysis (Compared with FY2023) FY2026 Consolidated Ordinary Profit Target JPY 22.0 billion Non-Japan Wholesaling R

  29. Slide 29: Financial and Capital Strategies: Cash Allocation

    III Overview of OVOL Vision 2030 and OVOL Medium-term Business Plan 2026 Financial and Capital Strategies: Cash Allocation Invest in growth and deliver proactive shareholder returns by expanding cash flow and utilizing financial leverage Growth investment capacity until net D/E ratio reaches 1.0x: C

  30. Slide 30: Financial and Capital Strategies: Shareholder Return Policy

    III Overview of OVOL Vision 2030 and OVOL Medium-term Business Plan 2026 Financial and Capital Strategies: Shareholder Return Policy Deliver proactive shareholder returns that meet market expectations Shareholder Return Dividends • Progressive dividends with consolidated payout ratio of 30% or more

  31. Slide 31: Progress of OVOL Medium-term Business Plan 2026

    IV Progress of OVOL Medium-term Business Plan 2026 Copyright © Japan Pulp & Paper Co., Ltd. 2025 30

  32. Slide 32: OVOL Medium-term Business Plan 2026: Fundamental Principles

    IV Progress of OVOL Medium-term Business Plan 2026 OVOL Medium-term Business Plan 2026: Fundamental Principles Aim to achieve OVOL Vision 2030 by formulating and implementing measures based on three fundamental principles OVOL Medium-term Business Plan 2026 • Held workshops (p.32) Three Fundamental

  33. Slide 33: (i) Expand Communication and Increase Value Provided 1

    IV Progress of OVOL Medium-term Business Plan 2026 (i) Expand Communication and Increase Value Provided 1 Workshops Exploring the Potential of Paper At OVOL Bridges 2023 - The 2nd Paper Merchants Forum, held in 2023, we announced that we would implement three initiatives in Japan to promote the valu

  34. Slide 34: (i) Expand Communication and Increase Value Provided 2

    IV Progress of OVOL Medium-term Business Plan 2026 (i) Expand Communication and Increase Value Provided 2 Company Information Session for Individual Investors To strengthen IR activities, we held our first company information session for individual investors in March 2025. Renewal of Our Website Hom

  35. Slide 35: (i) Expand Communication and Increase Value Provided 3

    IV Progress of OVOL Medium-term Business Plan 2026 (i) Expand Communication and Increase Value Provided 3 OVOL Sustainability Promotion Meetings and OVOL Environment & Safety Meetings Hold Plenary Sessions The OVOL Sustainability Promotion Meetings and the OVOL Environment & Safety Meetings, whose m

  36. Slide 36: Formulate and implement measures

    IV Progress of OVOL Medium-term Business Plan 2026 OVOL Medium-term Business Plan 2026: Fundamental Principles Aim to achieve OVOL Vision 2030 by formulating and implementing measures based on three fundamental principles OVOL Medium-term Business Plan 2026 • Held workshops (p.32) Three Fundamental

  37. Slide 37: (ii) Raising the Capabilities of Human Resources and Improving Work Engagement

    IV Progress of OVOL Medium-term Business Plan 2026 (ii) Raising the Capabilities of Human Resources and Improving Work Engagement (Non-consolidated initiatives at Japan Pulp & Paper) Initiatives to Improve Engagement • The result of the engagement survey conducted in December 2024 was 'BBB', thus ac

  38. Slide 38: Formulate and implement measures

    IV Progress of OVOL Medium-term Business Plan 2026 OVOL Medium-term Business Plan 2026: Fundamental Principles Aim to achieve OVOL Vision 2030 by formulating and implementing measures based on three fundamental principles OVOL Medium-term Business Plan 2026 • Held workshops (p.32) Three Fundamental

  39. Slide 39: (iii) Business Expansion Through Promotion of M&As and Alliances 1

    IV Progress of OVOL Medium-term Business Plan 2026 (iii) Business Expansion Through Promotion of M&As and Alliances 1 One of the fundamental principles in OVOL Medium-term Business Plan 2026 is to fully utilize M&As to rapidly expand our business in new and existing areas. Our goal is to increase ou

  40. Slide 40: (iii) Business Expansion Through Promotion of M&As and Alliances 2

    IV Progress of OVOL Medium-term Business Plan 2026 (iii) Business Expansion Through Promotion of M&As and Alliances 2 • In the Non-Japan Wholesaling segment, we are developing a group of regionally-based paper wholesale companies that have Non-Japan inventory and distribution functions in various co

  41. Slide 41: (iii) Business Expansion Through Promotion of M&As and Alliances 3

    IV Progress of OVOL Medium-term Business Plan 2026 (iii) Business Expansion Through Promotion of M&As and Alliances 3 Investment (Strategic M&As) Six new companies in Germany, France, and Portugal were added to the group in FY2024. Japan Pulp & Paper Group  Through grouping, Japan Pulp & Paper has

  42. Slide 42: (Reference) Non-Japan Wholesaling Segment: Subsidiaries in Key Regions

    IV Progress of OVOL Medium-term Business Plan 2026 (Reference) Non-Japan Wholesaling Segment: Subsidiaries in Key Regions U.S.A U.K. OVOL USA (Gould Paper) Premier Paper Group  Leading paper distribution group in the U.S., headquartered in New York  Leading paper distribution group in the U.K., he

  43. Slide 43: Formulate and implement measures

    IV Progress of OVOL Medium-term Business Plan 2026 OVOL Medium-term Business Plan 2026: Fundamental Principles Aim to achieve OVOL Vision 2030 by formulating and implementing measures based on three fundamental principles OVOL Medium-term Business Plan 2026 • Held workshops (p.32) Three Fundamental

  44. Slide 44: Execution of Financial and Capital Strategies

    IV Progress of OVOL Medium-term Business Plan 2026 Execution of Financial and Capital Strategies Dividends increased four consecutive fiscal years through FY2024. Cross-shareholdings are being reduced. Dividend Record and Forecasts Status of Cross-shareholdings JPY 28 JPY 25 Year-on-Year FY2022 FY20

  45. Slide 45: Promotion of Sustainable Management

    IV Progress of OVOL Medium-term Business Plan 2026 Promotion of Sustainable Management Business and • Conducted training on business and human rights at group companies inside and outside of Japan. Human Rights • Japan Pulp & Paper has monitored its major suppliers—those covering 80% of its total pu

  46. Slide 46: Current Situation and Future Outlook: Non-Japan Wholesaling

    IV Progress of OVOL Medium-term Business Plan 2026 Current Situation and Future Outlook: Non-Japan Wholesaling Non-Japan Wholesaling: Ordinary Profit • In FY2022, record profits were achieved thanks to favorable conditions 単位︓百万円 (Millions of yen) in markets outside Japan. However, in FY2023, profit

  47. Slide 47: Current Situation and Future Outlook: Japan Wholesaling

    IV Progress of OVOL Medium-term Business Plan 2026 Current Situation and Future Outlook: Japan Wholesaling Japan Wholesaling: Ordinary Profit 単位︓百万円 (Millions of yen) • In the Japanese market, profits are under pressure due to a gradual decline in demand and rising costs. • We aim to increase profit

  48. Slide 48: Current Situation and Future Outlook: Paper Manufacturing & Processing

    IV Progress of OVOL Medium-term Business Plan 2026 Current Situation and Future Outlook: Paper Manufacturing & Processing Paper Manufacturing & Processing: Ordinary Profit (Millions of yen) • Demand has plateaued while raw material and fuel costs have risen and remained high, putting pressure on rev

  49. Slide 49: Current Situation and Future Outlook: Impact of Additional U.S. Tariffs

    IV Progress of OVOL Medium-term Business Plan 2026 Current Situation and Future Outlook: Impact of Additional U.S. Tariffs The impact of additional tariffs by the Trump administration has not been factored into our current financial results forecast due to many uncertain factors, including timeline.

  50. Slide 50: Current Situation and Future Outlook: Measures to be taken by the group

    IV Progress of OVOL Medium-term Business Plan 2026 Current Situation and Future Outlook: Measures to be taken by the group in light of the current situation Continue to develop the mechanisms and initiatives essential for realizing OVOL Vision 2030 Japan Wholesaling • Develop new mechanisms and init

  51. Slide 51: Appendix

    V Appendix Copyright © Japan Pulp & Paper Co., Ltd. 2025 50

  52. Slide 52: Consolidated Balance Sheets as of March 31, 2025

    Consolidated Balance Sheets as of March 31, 2025 Assets (Millions of yen) Liabilities and Net Assets (Millions of yen) As of March 31, As of March 31, As of March 31, As of March 31, 2024 2025 2024 2025 Current Assets 222,963 233,953 Current Liabilities 189,337 192,050 Non-current Assets 149,641 158

  53. Slide 53: Consolidated Statements of Cash Flows for the Fiscal Year Ended March 31, 2025

    Consolidated Statements of Cash Flows for the Fiscal Year Ended March 31, 2025 (Millions of yen) For the fiscal year ended For the fiscal year ended Year-on-year change March 31, 2024 March 31, 2025 Cash and Cash Equivalents at Beginning of Period 30,550 17,387 -13,164 Cash Flows from Operating Acti

  54. Slide 54: Japan Wholesaling: Business Overview

    Japan Wholesaling: Business Overview A dominant presence in the industry and the leading share of paper distribution in Japan Business Flow of Japan Wholesaling Wholesale Publishing Industry Merchants Retail Industry Society/ Printing and Processing Companies Food Industry Manufacturers Japan Pulp &

  55. Slide 55: Japan Wholesaling Segment: Topics

    Japan Wholesaling Segment: Topics Products Handled Graphic paper for books, publications, Containerboard and other packaging papers Functional materials and Packaging materials, including Paper products for offices and households catalogs, flyers, etc. industrial materials necessary containerboard a

  56. Slide 56: Non-Japan Wholesaling: Business Overview

    Non-Japan Wholesaling: Business Overview Global and cross-border business rooted in multiple countries and regions (Number of companies) Asia 25 Business Model of (*Japan included) Europe Americas Non-Japan Wholesaling Business We develop business that leverages the inventory and 30 9 distribution f

  57. Slide 57: M&A Progress (Group Companies Outside Japan)

    Main Businesses M&A Progress (Group Companies Outside Japan) ■Sales of Paper, Paperboard, Films, etc. ■Sign & Display North and Central Europe ■Packaging America ■Processing ■Other Reference: Reference: Number of employees: approx. 1,200 Number of employees: approx. 300 (as of March 31, 2025) (as of

  58. Slide 58: M&A Progress (Group Companies Outside Japan)

    Main Businesses: M&A Progress (Group Companies Outside Japan) ■Sales of Paper, Paperboard, Films, etc. ■Sign & Display Asia ■Packaging ■Processing ■Other Reference: Singapore Number of employees: approx. 600 ■ OVOL Singapore (as of March 31, 2025, excluding Japan) ■ Transam Industries China ■ Japan

  59. Slide 59: Paper Manufacturing & Processing: Business Overview

    Paper Manufacturing & Processing: Business Overview Optimizes the group’s raw material procurement, manufacturing, and sales supply chain Corrugated Container Business A comprehensive packaging supplier, from containerboard manufacturing to sheet and case processing  Promotes the establishment of a

  60. Slide 60: Paper Manufacturing & Processing: Major Subsidiaries

    Paper Manufacturing & Processing: Major Subsidiaries *Bogus paper: Paper cushioning material for packaging that is made from recycled paper. Corrugated Container Business Taiho Paper Eco Paper JP Based in Gifu Prefecture, Taiho Paper manufactures In Aichi Prefecture, Eco Paper JP manufactures contai

  61. Slide 61: Raw Materials & Environment: Business Overview

    環境原材料セグメント Raw Materials & Environment: Business Overview Engages in initiatives to recycle and circulate resources to promote a circular economy Recovered Paper Recycling Business  A quality-focused recovered paper recycling business that delivers stable supplies to paper Promotes recycling of man

  62. Slide 62: Raw Materials & Environment: Major Subsidiaries

    Raw Materials & Environment: Major Subsidiaries Recovered Paper Recycling Business Fukudasansho Eco-Port Kyushu  Operates a comprehensive recycling business in  Leading recovered paper trading company Kumamoto Prefecture where it processes plastic in Japan containers, packaging, and confidential d

  63. Slide 63: Real Estate Leasing: Business Overview

    Real Estate Leasing: Business Overview Creates a stable revenue base by effectively utilizing our real estate holdings in prime locations in Tokyo, Osaka, Kyoto, and other major cities Main Rental Properties Name Location Number of Floors Purposes Completed Nihombashi Nichigin-Dori Building Tokyo 8

  64. Slide 64: Japan Pulp & Paper Co., Ltd.

    Japan Pulp & Paper Co., Ltd. Forefront Tower, 3-12-1 Kachidoki, Chuo-Ku, Tokyo 104-8656 Japan www.kamipa.co.jp/eng/ The forecasts in this document are based on assumptions, outlooks, and plans related to the future as of its release date. These forward-looking statements are based on decisions made

Japan Pulp & Paper — FY2024 Earnings Presentation on 6ix