Pack CorporationTSE: 3950

Briefing Materials on Business Results for the Year Ended December 31, 2024

Mar 13, 2025 at 2:15 AM UTC · Issued by Pack Corporation

THE PACK CORPORATION

March 3, 2025

Contents

Topics	P. 3
1.	Business Results for the Year Ended	P. 4
	December 31, 2024
2.	Forecast of Business Results for the Year	P. 19
	Ending December 31, 2025
3.	Progress on Sustainable Management	P. 23
4.	Progress on the Medium-Term	P. 27
	Management Plan
5.	Reference Materials	P. 35

Topics

The Japanese economy has gradually recovered due to spending by inbound tourists and robust capital investments. At the same time, it has been adversely affected by soaring prices attributable to rising energy costs and yen devaluation, creating lingering circumstances in which price increases outstrip wage growth. The outlook for consumer spending remains uncertain.

The Pack achieved record figures for net sales, operating profit, ordinary profit, and profit. Higher value added order-receiving activities based on proposal-based sales to solve customer issues increased sales of paper products, contributing significantly to net sales and profit.

Dividend per share grew to 118 yen (up by 28 yen from the previous fiscal year).

The progress toward achievement of numerical targets under the Medium-Term Management Plan (FY2023-2025) has been substantially as planned.

1. Business Results for the Year Ended December 31, 2024

Summary of Business Results

Consolidated net sales exceeded 100 billion yen, a new record high.

Net sales

Operating profit

Ordinary profit

Profit attributable to owners of parent

Basic earnings per share (yen)

Dividend per share (yen)

(Million yen)

Year ended		Year ended
December 31, 2023		December 31, 2024

Actual	Actual		YoY change
97,714	101,461		3.8%

7,743	8,009		3.4%

8,063	8,285		2.8%

5,652	6,316		11.7%

297.07	333.52		12.3%

90.00	118.00		31.1%

We achieved consolidated net sales of 100 billion yen by promoting proposal-based sales and cross-selling.
We absorbed cost increases by normalizing sales prices and strengthening high value added product sales.
We reduced cross-held shares.

Results by Segment

							(Million yen)

			Year ended December 31, 2023	Year ended December 31, 2024

			Actual	Share	Actual	Share	YoY change

Net sales	97,714	100.0%	101,461	100.0%	3.8%
	Paper	69,399	71.0%	73,114	72.1%	5.4%
	Products
		Paper bags	29,653	30.3%	32,214	31.8%	8.6%
		Paper	25,000	25.6%	25,882	25.5%	3.5%
		cartons
		Corrugated	12,419	12.7%	13,027	12.8%	4.9%
		boxes
		Printing	2,325	2.4%	1,990	2.0%	-14.4%
	Film	13,798	14.1%	13,499	13.3%	-2.2%
	Packaging
	Others	14,516	14.9%	14,846	14.6%	2.3%
Operating profit	7,743	100.0%	8,009	100.0%	3.4%
	Paper	6,858	88.6%	7,168	89.5%	4.5%
	Products
	Film	856	11.0%	933	11.7%	9.0%
	Packaging
	Others	1,267	16.4%	1,261	15.7%	-0.5%
	Adjustments	-1,239	-16.0%	-1,354	-16.9%	-

The Paper Products segment posted growth in both net sales and profit due to strong sales of paper cartons for the food products market and paper bags for retail businesses, attributable in turn to spending by inbound tourists and recovering personal consumption.
Sales of corrugated boxes grew due to recovery in sales of packing materials for transportation.
Profits for film packaging products grew due to productivity improvements. However, the volume of such products consumed declined in line with

growing environmental awareness.

Factors Underlying Changes in Operating Profit

Sales volumes grew due to rising average sales prices

(Million yen)

Year ended

December

31,

December

31,

2023

Higher

Higher raw

Higher

Higher other

2024

Operating

sales

average

material

manufac-

labor costs

logistics

selling,

volumes

sale prices

costs

turing

costs

general and

Operating

profit

expenses,

administrative

profit

7,743

other

expenses

8,009

+361

+1,023

-477

+30

-236

-22

-413

Sales volumes increased thanks to strong consumer spending.
Average sales prices rose due to normalization of sales prices and efforts to promote sales of high value added products.
Capital investments intended to improve production efficiency increased.

Trends by Segment

Net sales and operating profit reached record highs

(compared to the semi-annual period of the preceding fiscal year)

(Million yen)

Net sales (Paper Products segment)		Net sales (Film Packaging segment)		Net sales (other segments)		Operating profit

100,000

80,000

60,000

40,000

20,000

			7,743	8,009	8,000
		5,972
				6,000
	4,144			101,461
3,275		97,714	4,000


		89,060	14,516	14,846	2,000
	79,690
78,445	14,138		13,499	0
	13,798
	13,008
13,574
11,988

13,484	11,184

		62,932	69,399	73,114
	55,498
51,386

Year ended	Year ended	Year ended	Year ended	Year ended
December 31, 2020	December 31, 2021	December 31, 2022	December 31, 2023	December 31, 2024
	Copyright© 2025 The Pack Corporation. All Rights Reserved.	8

Sales Composition

Year ended

December 31,

2023

Year ended

December 31,

2024

28.1

28.7

16.6

17.1

1.2 2.9

5.0

5.6

4.9

2.0 3.0

5.0

4.6

2.12.7

1.3 3.6

0.3

3.8

3.4

0.3

26.6

26.2

(Unit: %)

Food products		Apparel

Convenience stores		Pharmaceuticals and cosmetics

Home electronics and home installations		Life care

	Department stores		Supermarkets and drug stores

	e-commerce		Sundries

	Automotive		Other

	Year ended			Year ended
	December 31, 2023		December 31, 2024
(Million yen)	Actual	Share	Actual		Share	YoY change
Food products	27,438	28.1%	29,160		28.7%	6.3%
Apparel	16,187	16.6%	17,390		17.1%	7.4%
Department stores	4,910	5.0%	5,103		5.0%	4.0%
Supermarkets and drug	5,502	5.6%	5,089		5.0%	-7.5%
stores
Convenience stores	1,184	1.2%	1,158		1.3%	-2.2%
Pharmaceuticals and	4,743	4.9%	4,632		4.6%	-2.3%
cosmetics
e-commerce *	2,834	2.9%	3,663		3.6%	29.3%
Sundries	1,939	2.0%	2,151		2.1%	10.9%
Home electronics and	2,888	3.0%	2,778		2.7%	-3.8%
home installations
Life care	3,744	3.8%	3,454		3.4%	-7.7%
Automotive	330	0.3%	298		0.3%	-9.7%
Other	26,014	26.6%	26,578		26.2%	2.2%

In the food products market, sales of packages for the food service industry and for the souvenir market were strong.
In the apparel market, sales of paper bags for brick-and-mortar shops and high value added paper bags were strong.
Sales to department stores trended positive, driven by robust consumer spending and inbound tourism demand.
Sales to the e-commerce market were strong due to new orders for delivery packages, including paper delivery bags.
In the sundries market, sales of gifting packages were strong.
Sales to the life care market declined as a proportion of total sales due to weak sales to specific users of products for overseas markets.

* e-commerce refers to the e-commerce platform segment. e-commerce sales on vendor sites are counted as part of their individual business segments.

Paper Products Segment

Business environment

Nationwide department store sales for 2024 were up 6.8% year on year, marking year-on-year increases for four consecutive years. The number of tax-free buyers was up 74.3%, a new record high. These buyers were the largest contributor to sales of high value added products. In the food products market, while pullbacks in consumer spending were noted in part due to soaring prices, confectionery sales grew slightly thanks to gifting and inbound demand. (Source: Japan Department Store Association "Preliminary Reports on Department Store Sales in Japan" for January to December, 2024)
The monthly on-lineshopping expenditure per two-or-more-personhousehold increased year on year for the twelfth consecutive month, marking a record high. (Source: "Family Income and Expenditure Survey," Statistics Bureau of Japan)

Initiatives

Promoting productivity improvement through capital investments
Diversifying the line of products to cover a wider range of market needs
Putting in more efforts for products and services that are eco- friendly or serve as solutions to problems such as labor shortages
Strengthening cross-selling

Trends in net sales and operating profits

		Net sales (left axis)			Operating profit (right axis)	(Million yen)


						69,399	73,114		14,000

70,000						New
		62,932
						record	12,000
60,000								set
	55,498

50,000									10,000
								8,000
				6,858	7,168
40,000

							6,000
30,000			5,333
	3,958			4,000

20,000

								2,000
10,000

0									0
FY21/12	FY22/12	FY23/12	FY24/12

Trends in operating profit margins

	Paper Products segment	Film Packaging segment
12.0%	Other segments	9.9%
10.0%			9.8%
	8.5%

	7.1%		8.5%
8.0%		8.7%
		7.5%
6.0%	6.8%		6.9%
	6.2%
		4.9%
4.0%	3.6%
2.0%
FY21/12	FY22/12	FY23/12	FY24/12

Trends in sales composition in the Paper Products Segment

100	%	3.8%	3.5%	3.4%	Printing, 2.7%

21.4%	19.4%	17.9%	Corrugated

80			boxes, 12.8%
				36.0%	Paper cartons,
60			35.1%	35.4%
		35.4%
40
						Paper

20			39.7%	41.7%	42.7%		bags,
						44.1%
0
		FY21/12	FY22/12	FY23/12		FY24/12