To whom it may concern:
Company name: Nippon Paper Industries Co. Ltd.
(Stock code: 3863, Prime, TSE) Representative: Akira Sebe
June 30, 2025
President and Representative Director
Contact: Takashi Yamaguchi
General Manager, Corporate Planning Division
TEL: +81-3-6665-1002
Actions to Implement Management That is Conscious of the Cost of Capital and Stock Price Renewal for FY2025
On June 28, 2024, Nippon Paper Industries Co. Ltd. ("the Company") announced " Actions to Implement Management That is Conscious of the Cost of Capital and Stock Price" and has been implementing measures related to the priority items set forth in the Medium-Term Management Plan 2025. Since then, the Company has continued to seek ways to enhance our corporate value over the medium to long term.
On June 27, 2025 meeting, the Board of Directors analyzed and evaluated the current status of the indicators on the Company's cost of capital and return on capital, and updated the Company's efforts to improve them. Please refer to the attached document for detailed information.
END
ACTION TO IMPLEMENT MANAGEMENT THAT IS CONSCIOUS OF THE COST OF CAPITAL AND STOCK PRICE June 30, 2025Table of Contents
- ... Analysis of current situation P3
- ... Evaluation P7
- ... Initiatives to improve PBR P11
- ... Appendix P19
1•••Analysis of current situation
-
Analysis of Current Situation (Consolidated Financial Results)
In FY2022, the Company posted a loss due to major changes in the external environment, including prolonged influence of COVID-19, supply chain disruptions caused by volatility in international situation, soaring raw material and fuel prices, and the suspension of wood supply to Opal's graphic paper business.
Profit increased for two consecutive fiscal years due to a review of production system, improved profitability of Opal, and steady implementation of
cost reductions and price revisions, including reductions in coal usage.
Operating income is expected to be 34 billion yen in FY2025 ⇒The Company aims to achieve the 40 billion yen target of its Medium-Term Business
Plan by implementing further measures to improve profitability.
Consolidated Net Sales Operating Income, Net Income* and Operating Income Margin(Billions yen)
Medium-Term Plan Target 1,200 billion yen
1,043.9
1,007.3
1,045.1
563.2
570.2
565.9
555.0
532.1
568.3
646.7
317.9
386.5
270.2
1,400.0
1,200.0
(Billions yen)
40.0
3.4%
34.0
35.0
2.8%
19.2
22.7
14.2
1.9%
17.3
19.7
12.1 1.2%
3.2
2.0
1.5%
1.7%
4.5
12.0
-2.3%
-26.9
Medium-Term Plan Target
40 billion yen
4.0%
1,000.0
800.0
600.0
400.0
200.0
Daily-Life Products
1,152.6 | 1 | ,167.3 | 1,182.4 | 1,205.0 | ||
440.1 | 436.8 | 457.9 | 500.0 |
Paper & Paperboard
Energy
Wood Products & Construction Related
Other
20.0
0.0
-20.0
-40.0
2.0%
0.0%
-2.0%
-4.0%
0.0
2019 2020 2021 2022 2023 2024 2025
(FY)
-60.0
-50.4
2019 2020 2021 2022 2023 2024 2025
-6.0%
(Plan)
*Net income attributable to the owners of the parent
(Plan)
(FY)