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Medium-Term Management Plan(FY2023-FY2025)

Positioning of the Medium-Term Management Plan

The Pack Group will implement sustainable management based on our Purpose (fundamental mission) and Basic Policy of Sustainable Management and has set numerical targets to be achieved by the fiscal year ending December 31, 2025.The three key strategies are linked to our response to materiality, and we will deliver the Group’s unique value to society through sustainable growth.

Basic Policy

Numerical target

We will develop our business activities in line with our three strategies, with the goal of achieving consolidated sales of 107 billion yen. We will also strive to improve our return on equity (ROE) and return on invested capital (ROIC) in order to maintain stable relations with the Group’s stakeholders, including business partners, shareholders and employees.

  Consolidated sales Operating income ROE ROIC
Target of Fiscal Year 2025 107 billion yen 8.3 billion yen 8 % or more 8 % or more

Background of upward revisions and policy changes

In addition to pursuing companywide efforts to achieve the Medium-Term Management Plan, whose first year was FY2023, we have continued to engage in dialogue with the capital market, including investors and shareholders. Additionally, we pursue ongoing deliberations on corporate value enhancements, capital costs, and related topics at meetings of the Board of Directors and on other occasions.

Since business results in FY2023 exceeded initial targets, the Group has revised upward the medium-term management plan’s numerical targets and modified its policy on shareholder returns, aiming to increase corporate value even further.

Details of the changes

  initial plan Revised plans
Last fiscal year ending December 31, 2025. No change
Consolidated sales 107.0billion yen No change
Operating income 7.0 billion yen 8.3billion yen
Dividend payout ratio Maintaining a level of 30% or higher Maintaining a level of 35% or higher
Acquisition of
treasury shares
Flexible share buybacks FY2024-2025: Acquisition of up to 1.0 billion yen
in treasury shares each year
Total shareholder returns and total payout ratio 4.0 billion yen 8.0 billion yen
Breakdown Dividends Acquisition of
treasury shares None
Total payout ratio
FY2024 2.2 billion yen Up to
1.0 billion yen
50%
FY2025 2.2 billion yen Up to
1.0 billion yen
50%
Numerical target
(Billion yen)
  FY2022 results FY2025 target YOY change YOY change
Food products (*) 250 320 +70 28.0%
e-commerce, mail order, logistics 140 180 +40 28.6%
General distribution, retail, etc. 500 570 +70 14.0%
Total 890 1,070 +180 20.2%
  FY2022 results FY2025 target
ROE 6.4% 8 % or more
ROIC 6.4% 8 % or more
(Billion yen)
  FY2022 results FY2025 target YOY change YOY change
Paper bags 262 315 +53 20.2%
Paper cartons 222 270 +48 21.6%
Corrugated boxes 122 150 +28 23.0%
Film packaging 119 145 +26 21.8%
Other 162 190 +28 17.3%
Total 890 1,070 +180 20.2%

* The food products category includes packages for food products at convenience stores, supermarkets, etc

Important strategies




Growth strategy

Focusing on target markets

We are selecting and prioritizing target markets to re ect contemporary trends. In the food products market, including fast food and convenience stores, we are expanding use of our products by testing to control quality risks, responding to demand for larger lot sizes and delivery use, and proposing simpli cation of packing and storage on the work oor and in stores. In the e-commerce, mail order market, and logistics industry, we are proposing overall packing line improvements to enhance productivity in customer work sites. We are growing sales by leveraging our strengths as a total packaging solutions provider, through means including integrated proposals of automatic packaging systems to save labor in addition to more e cient packages.

Main initiatives
Food products market (including convenience stores and fast food)

Increase sales of primary food containers.

Develop materials and processes that help reduce environmental impact; increase sales of FSC® products (FSC® C020517).

Combined sales of paper bags and paper cartons with labels, films (film packaging), etc.

Food products market (including convenience stores and fast food)

Promote solution proposals that contribute to labor savings, streamlining, and automation at customers.

Expand lineup of paper carton products.

Initiatives for trays and molded containers, etc.

Initiatives for trays and molded containers, etc.
E-commerce, mail order market, logistics industry

Strengthen sales of delivery bags that increase transport efficiency for customers.

E-commerce, mail order market, logistics industry

Strengthen proposal-based sales that can help reduce labor requirements at customer facilities.

Proposals for product designs that reduce work hours Proposals for solutions for automating work processe

Develop materials and processes for automatic packaging and increase related sales.

E-commerce, mail order market, logistics industry

Further increase sales of reinforced corrugated boxes for heavy objects.

General distribution and retail market, other markets

Increase paper bag share and continue pursuing proposal-based sales to promote paper migration.

Along with product sales, combined sales with assembly and setup work.

Develop sales channels in ASEAN region.

Product sales aligned with the 3 Rs (reduce, reuse, recycle)

Increase sales of eco paper, upcycled materials, and FSC® paper. Increase sales of eco bags and mono-material products. Develop original paper and films with 100% recycled materials.
General distribution and retail market, other markets

Promote social contributions with customers.
Apply a portion of sales proceeds from eco-friendly products to promote forest conservation via The Pack Forest Environment Fund and an NPO




Human capital strategy

Enhancing human capital, our most important form of management capital

While securing and training a diverse workforce, we are improving working environments. In addition, we strive to secure human resources to support growth and maximize their value by increasing employee engagement.

Main initiatives
Securing diverse human resources

Strengthen mid-career hiring.

Promote active participation of women (full-time employee and manager ratios).

Expand employment of people with disabilities.

Develop human resources

Enhance training programs.

Support for self-initiated skill improvement and retraining.

Optimize personnel assignments

Make effective use of the talent management system.

Expand hiring opportunities (referrals, re-hires).

Develop optimal working
environments

Diverse work formats and program enhancements.

Well-being (promote health and productivity management).

Maximize employee engagement

Appropriate wage structure, enhancements to benefits.

Raise management participation awareness by joining stock ownership association.

Energize employee interactions and communications.

Conduct engagement surveys.

Enhancing human capital, our most important form of management capital

FY2022 result 1,797 ※Including full-time employees, contract employees, and part-time employees
FY2025 plan 1,920 (+123 )



Financial strategy

Supporting efficient, continuous growth through optimal fund usage planning

We are promoting aggressive capital investment targeting growth and increased corporate value. In the area of returns to shareholders, we are aiming for a total payout ratio of 50% (announced February 2024).

Investing in growth
  • Priority allocation of funds for growth investment (1) Capital investment (2) Investment in new businesses (3) Human investment (4) Investment for system upgrading (5) R&D
  • Continuing efforts to advance ongoing projects (1) Nara Plant rebuildPlan to acquire new land in Nara Prefecture and build corrugated box plant (2) Osaka Plant rebuildPlan to rebuild through scrap-and-build on the current Osaka Plant site

shareholder returns

  • Maintaining a level of 35% or higher
  • FY2024-2025: Buying back up to 1.0 billion yen of our own shares each year

Fund usage plan (FY2023 – FY2025 total)

Fund usage plan

See related pages

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