Annual Securities Report for the 73rd Term

Page

Annual Securities Report for 73rd Term

Cover sheet

4

Part 1.

Company information

5

I.

Company overview

5

1.

Trends in KPIs, etc

5

2.

History

7

3.

Lines of business

8

4.

Affiliate companies

10

5.

Employees

11

II.

Business conditions

13

1.

Management policies, business environment, topics, etc

13

2.

Sustainability concepts and initiatives

15

3.

Business and other risks

23

4.

Management's analysis of financial standing, business results, and cash flows

24

5.

Important business contracts, etc

28

6.

Research and development activities

28

III.

Facilities

30

1.

Overview of capital investment

30

2.

Status of major equipment

30

3.

Plans for new facilities, removal of facilities, etc

31

IV.

Status of the Company

32

1.

Stock, etc

32

2.

Acquisition of treasury share, etc

37

3.

Dividend policy

38

4.

Corporate governance

39

V.

Accounts

65

1.

Consolidated financial statements, etc

66

2.

Financial statements, etc

103

VI.

Overview of stock administration by the Company

116

VII. Reference information on the Company

117

1.

Information on the parent company of the Company

117

2.

Other reference information

117

Part 2.

Information on the Company's guarantors

118

Document submitted:

Annual Securities Report

Underlying legal provisions:

Article 24, Paragraph 1, of the Financial Instruments and Exchange Act of Japan

Submitted to:

Director, Kinki Local Finance Branch Bureau

Date submitted:

March 27, 2025

Business year:

73rd Term (January 1 - December 31, 2024)

Company name:

ザ・パック株式会社

Company name in English:

The Pack Corporation

Name and title of representative:

Naoki Nakamura, President & CEO

Head office:

9-3 Higashiobase, Higashinari-ku, Osaka, Japan

Tel.:

+81-6-4967-1221

Administrative contact:

Ikuo Shimomura, Director, Corporate General Manager

Nearest contact address:

9-3 Higashiobase, Higashinari-ku, Osaka, Japan

Tel.:

+81-6-4967-1221

Administrative contact:

Ikuo Shimomura, Director, Corporate General Manager

Viewing locations:

The Pack Corporation

9-3 Higashiobase, Higashinari-ku, Osaka, Japan

Tokyo Stock Exchange, Inc.

2-1 Nihonbashi Kabutocho, Chuo-ku, Tokyo, Japan

Fiscal year

69th

70th

71st

72nd

73rd

Fiscal year ended

December

December

December

December

December

2020

2021

2022

2023

2024

Net sales

(¥ million)

78,445

79,690

89,060

97,714

101,461

Ordinary income

(¥ million)

3,606

4,422

6,353

8,063

8,285

Profit attributable to owners of

(¥ million)

2,392

2,824

4,058

5,652

6,316

parent

Comprehensive income

(¥ million)

2,368

3,325

4,362

7,059

6,319

Net assets

(¥ million)

59,739

62,032

65,371

71,156

74,485

Total assets

(¥ million)

83,556

87,422

94,365

98,847

103,292

Net assets per share

(¥)

3,141.09

3,261.64

3,436.46

3,736.44

3,964.51

Net income per share

(¥)

126.01

148.71

213.55

297.07

333.52

Diluted net income per share

(¥)

125.85

148.53

213.38

296.86

333.34

Capital adequacy ratio

(%)

71.4

70.9

69.2

71.9

72.1

Return on equity

(%)

4.1

4.6

6.4

8.3

8.7

Price-to-earnings ratio

(times)

22.4

18.1

11.3

11.4

10.7

Cash flows from operating

(¥ million)

3,155

7,217

5,380

4,443

7,101

activities

Cash flows from investing

(¥ million)

(5,013)

(3,460)

(3,762)

(3,962)

(5,436)

activities

Cash flows from financing

(¥ million)

(1,214)

(1,029)

(1,124)

(1,407)

(3,041)

activities

Ending balance of cash and

(¥ million)

15,224

18,067

18,653

17,812

16,656

cash equivalents

Employees

1,240

1,198

1,183

1,183

1,196

[average number of temporary

(persons)

(480)

(468)

(472)

(515)

(510)

employees, not included

above]

Fiscal year

69th

70th

71st

72nd

73rd

Fiscal year ended

December

December

December

December

December

2020

2021

2022

2023

2024

Net sales

(¥ million)

69,055

69,557

77,117

85,485

88,345

Ordinary income

(¥ million)

3,305

3,748

5,214

6,713

7,194

Net income

(¥ million)

2,232

2,175

3,268

4,670

5,529

Capital

(¥ million)

2,553

2,553

2,553

2,553

2,553

Total shares issued

(thousand shares)

19,900

19,900

19,900

19,900

19,900

and outstanding

Net assets

(¥ million)

55,670

57,053

59,426

63,790

65,971

Total assets

(¥ million)

76,327

79,172

85,299

87,903

90,691

Net assets per share

(¥)

2,928.01

3,000.23

3,123.70

3,349.40

3,511.21

Dividends per share

60.00

50.00

65.00

90.00

118.00

[interim dividend per share,

(¥)

(30.00)

(25.00)

(30.00)

(35.00)

(52.00)

included above]

Net income per share

(¥)

117.61

114.51

171.97

245.44

291.99

Diluted net income per share

(¥)

117.45

114.38

171.83

245.27

291.84

Capital adequacy ratio

(%)

72.9

72.0

69.6

72.5

72.7

Return on equity

(%)

4.0

3.9

5.6

7.6

8.5

Price-to-earnings ratio

(times)

24.0

23.6

14.0

13.8

12.3

Dividend payout ratio

(%)

51.0

43.7

37.8

36.7

40.4

Employees

881

841

835

840

862

[average number of temporary

(persons)

(402)

(390)

(393)

(436)

(431)

employees, not included

above]

Total returns to shareholders

73

71

65

92

100

[Indicator for comparison:

(%)

(107)

(121)

(118)

(151)

(182)

TOPIX including dividends]

Highest share price

(¥)

4,245

3,270

2,817

3,450

4,145

Lowest share price

(¥)

2,557

2,537

2,107

2,355

3,205

May 1952

Nippon Case Corporation established and launches sales of paper cartons and apparel boxes.

July 1955

Hanazono Plant opens in Higashiosaka. Integrated in-house production begins for products ranging from

corrugated boxes to apparel boxes.

May 1957

Production of paper shopping bags begins.

December 1957

Kobe Office (now Kobe Branch) opens.

June 1958

Nagoya Office (now Nagoya Branch) opens.

September 1959

Konoike Plant (now Osaka Plant) opens in Higashiosaka; production facilities expanded.

August 1960

Fukuoka Branch and Kyoto Office (now the Kyoto Branch) open.

March 1961

Tokyo Branch opens (now the Tokyo Head Office).

September 1964

Expansion work completed at Konoike Plant. Hanazono Plant relocated. Full-scale multifaceted

production and management structures established.

July 1965

Sapporo Office (now the Hokkaido Branch) opens.

May 1966

Hiroshima Office (now the Hiroshima Branch) opens.

May 1967

Okayama Office (now the Okayama Branch) opens.

April 1968

Sendai Office (now the Tohoku Branch) opens.

September 1969

Nara Plant opens in Yamatokoriyama as a plant specializing in corrugated boxes. Urawa Plant opens in

Urawa.

August 1974

Production of plastic bags begins.

September 1979

Kanto Plant (later renamed the Saitama Plant) opens in Sakado.

July 1983

Company is renamed The Pack Corporation.

January 1987

Yokohama Office (now the Yokohama Branch) opens.

November 1987

The Pack America Corp. (now a consolidated subsidiary) established in the United States

August 1991

Ibaraki Plant opens in Hitachi.

September 1991

Stock listed on second section of Osaka Securities Exchange

January 1996

The Nicols established

January 1998

Kanto Branch opens.

January 1999

Ibaraki Plant earns ISO 14001 (environmental management systems) certification.

December 1999

Headquarters earns ISO 14001 (environmental management systems) certification.

April 2000

Nara Plant earns ISO 9001 (quality management) certification.

September 2001

Stock listed on second section of Tokyo Stock Exchange

October 2001

Osaka, Saitama, and Ibaraki plants earn ISO 9001 (quality management) certification.

April 2002

Nara Plant earns ISO 14001 (environmental management systems) certification.

October 2002

Osaka and Saitama plants earn ISO 14001 (environmental management systems) certification.

June 2003

Stock listed on first sections of Tokyo Stock Exchange and Osaka Securities Exchange

October 2003

Keihin Tokushu Printing Corp. (now a consolidated subsidiary) established

December 2003

Shanghai Office opens in China.

March 2006

The Pack (Shanghai) Corporation (now a consolidated subsidiary) established in China

November 2006

All sites earn ISO 14001 (environmental management systems) certification.

April 2007

Additional shares acquired in Nikko Print Corporation (now a consolidated subsidiary)

August 2007

The Pack (Changshu) Co., Ltd. (now a consolidated subsidiary) established in China

Headquarters, Saitama and Osaka plants, and sales offices earn FSC® CoC certification (FSC® C020517).

February 2009

Pack Takeyama Co., Ltd. (now a consolidated subsidiary) established

April 2009

All sites earn ISO 9001 (quality management) certification.

July 2011

Tokyo Plant opens in Hidaka, Saitama Prefecture; Saitama Plant relocated.

January 2014

The Nicols merged through absorption-type merger

June 2014

Acquired all shares of stock in Nishinihon Printing Co., Ltd. (now a consolidated subsidiary), making it

a wholly owned subsidiary

December 2016

All paper products production and sales sites in Japan earn FSC® CoC certification (FSC® C020517).

April 2018

Acquired stock in Kannaru Printing Co., Ltd. (now a consolidated subsidiary), making it a subsidiary.

December 2018

Tokyo and Osaka plants earn FSSC 22000 (food safety) certification.

April 2022

Listing transferred to the Prime Market of the Tokyo Stock Exchange

March 2023

New headquarter building completed in Higashinari-ku, Osaka

Segment

Lines of business

Companies

Paper Products

Manufacture, purchase, and sale of paper

The Pack Corporation

bags, printed folding paper cartons,

Keihin Tokushu Printing Corp.

corrugated boxes, etc.

Nikko Print Corporation

Pack Takeyama Co., Ltd.

Nishinihon Printing Co., Ltd.

Kannaru Printing Co., Ltd.

The Pack America Corp.

The Pack (Shanghai) Corporation

The Pack (Changshu) Co., Ltd.

Film Packaging

Manufacture, purchase, and sale of plastic

The Pack Corporation

bags, garment bags, etc.

Pack Takeyama Co., Ltd.

The Pack America Corp.

The Pack (Shanghai) Corporation

Other Businesses

Purchase and sale of gifts, supplies, price

The Pack Corporation

tags, design production, advertising and

Pack Takeyama Co., Ltd.

promotional materials, etc.

Nishinihon Printing Co., Ltd.

Kannaru Printing Co., Ltd.

The Pack America Corp.

The Pack (Shanghai) Corporation

Capital or

Ownership

ratio of voting

Name

Address

investment

Main lines of business

Relationship

rights

(¥ million)

(%)

(Consolidated

subsidiary)

Purchase of paper products; concurrent

Keihin Tokushu Printing

Higashinari-ku,

10

Paper Products business

100.0

posting of officers; secondment of

Corp.

Osaka

employees; lending of funds; lending of

equipment

Purchase of paper products; concurrent

Nikko Print Corporation

Higashinari-ku,

20

Paper Products business

100.0

posting of officers; secondment of

Osaka

employees; lending of funds; lending of

equipment

Paper Products business

Sale of our products; purchase of paper

Higashinari-ku,

products; concurrent posting of officers;

Pack Takeyama Co., Ltd.

90

Film Packaging business

100.0

Osaka

secondment of employees; payment

Other Businesses

agency services

Nishinihon Printing Co.,

Higashinari-ku,

Paper Products business

Purchase of paper products; concurrent

45

100.0

posting of officers; secondment of

Ltd.

Osaka

Other Businesses

employees

Kannaru Printing Co.,

Yodogawa-ku,

Paper Products business

Concurrent posting of officers;

12

100.0

secondment of employees; lending of

Ltd.

Osaka

Other Businesses

funds

New York, N.Y.,

Paper Products business

Concurrent posting of officers;

The Pack America Corp.

US$1,000,000

Film Packaging business

100.0

U.S.A.

secondment of employees

Other Businesses

The Pack (Shanghai)

Paper Products business

Concurrent posting of officers;

Shanghai, China

US$500,000

Film Packaging business

100.0

Corporation

secondment of employees

Other Businesses

The Pack (Changshu)

Changshu, Jiangsu

Purchase of paper products; concurrent

Co., Ltd.

US$3,900,000

Paper Products business

93.6

posting of officers; secondment of

Province, China

(See Note 2.)

employees; lending of funds