Financial Results
for the Six Months Ended September 2022
KPP GROUP HOLDINGS CO., LTD.
Tokyo Stock Exchange Prime Market: 9274

December 7, 2022

I

Transition to a Holding Company Structure

II

Summary of Financial Results for the Second Quarterof the Fiscal Year Ending March 2023 and Forecast for
the Full Fiscal YearIII

Progress in the Third Medium-Term PlanIV

Reference Materials

1

I

Transition to a Holding Company Structure

II

Summary of Financial Results for the Second Quarterof the Fiscal Year Ending March 2023 and Forecast for
the Full Fiscal YearIII

Progress in the Third Medium-Term PlanIV

Reference Materials

2Changing Company Name to “KPP Group Holdings”
and Starting with a Holding Company Structure

Transition to a Holding
Company Structure

Transition to a holding company structure was completed on October 1, 2022
Three core operating companies (Kokusai Pulp & Paper, Antalis and Spicers) come under the holding company’s umbrella

KPP GROUP HOLDINGSBusinessarea

Businessarea

Northeast Asia

Businessarea

Europe / North andSouth America

Asia Pacific(Oceania / Southeast Asia and India)

Kokusai Pulp & Paper

AntalisSpicers(Japan)(France)(Australia)• Consolidated subsidiaries: 20• Number of employees:
Around 1,000• Head Office: Japan (Tokyo)• Consolidated subsidiaries: 54• Number of employees:
Around 3,800• Head Office: France (Paris)• Consolidated subsidiaries: 17• Number of employees:
Around 500• Head Office: Australia(near Melbourne)* Both the number of consolidated subsidiaries and the number of
employees shown above are as of March 31, 2022.
* Spicers includes KPP-AP.

[Consolidated Net Sales Ratio] * FY March 2022

EuropeEuropeNorth America

Northeast
Asia

38.1%

53.0%

1.7%
5.1%
Southeast Asia and India 2.2%

North and South America

Northeast
Asia

Oceania(Kokusai Pulp & Paper)* Approximation(Antalis)[Consolidated Operating Profit Ratio] * FY March 2022

Southeast Asia
and India

Oceania

15.5%

Northeast
Asia

20.5%

South America
Oceania
Europe(Spicers)

60.7%* Northeast Asia : Japan, China, Taiwan,
Hong Kong and South Korea

3.0%Southeast Asia and India 0.3%

North and South America* Approximation3

Transition to a Holding
Company Structure

Heading toward a Truly Global Company

Promote various measures in line with the purpose of transitioning to a holding company

Strengthening global governance• Transfer of more authority to three core operating companies- Clarification of management responsibility, improvement of independency, higher efficiency andacceleration of business activity• Centralized management of information and appropriate group management• Establishing a rapid information management system by improving IT infrastructure• Enhancement of internal control and internal audit systems• Analysis of global markets and information sharing to group companies• Activation of internal communication

Business portfolio reform and expansion of new business• Proactive investment in high-growth businesses(packaging, visual communication, and environment-related products)• Introducing digital marketing and e-commerce knowledge from Antalis and Spicers into Japan• Creation of various synergies(e.g., strengthening the Group’s fund-raising capability by leveraging KPP creditworthiness)

Promoting sustainability management• Response to carbon neutrality• Achievement of KPIs and PDCA management for identified materiality(diversity, response to DX, climate change countermeasures, etc.)• Sustainability management on a global basis and integration with business plans
4Transition to a Holding
Company Structure

Benefits of Becoming a Holding Company (Creating Synergies)✓ Strategy: Share strategies, tactics, and management
methods across regions✓ Human Resources: Optimizing global staffing✓ Functions: Eliminating duplicated functions throughshared services, etc.

✓ Sales: Business matching within the group.
Sharing know-how, skill information and salesorganizations/channels✓ SCM: Global sharing of distribution networks
and product inventories✓ Funding: Utilization of surplus funds✓ Credit: Utilization of credit✓ Taxation: Development of Global
Governance System

Management
Synergies

Financial
Synergies✓ Procurement: Achieving economies of scale
through joint procurement of products✓ Brand: Brand awareness and brand strength

Business
Synergies

5Transition to a Holding
Company Structure

Reform of KPP GROUP WAY

The KPP Group’s management philosophy “KPP GROUP WAY” has been reformed along with our startwith the holding company structure- Introduced the concept of “Purpose Management.” Aim to be a company that contributes to the creation of a sustainable society based on the new KPP GROUP WAY.

Corporate Message

A Paper Trail for Creating The Future
MISSION

G lobalization
Leveraging our global network to become a leading pulp and paper company.

Contributing to the realizationof ペーパーイノベーションでa recycling-oriented society
循環型社会の実現に貢献する
through paper innovation

I nnovation
Developing the potential of paper through a creative mind anda recycling-oriented business model.

F unction
VISION

GIFT+1
Globalization Innovation Function Trust +1 (ESG)
VALUES

Promote e-commerce and take on the challenges of new business domains.

T rustContinue being a sincere company trusted by stakeholders.

+1 ( plus one )Contribute to the realization of a sustainable society by adding environmental,social, governance, and other initiatives to all elements of our vision as "plus one".

・ Pioneering The Future with “Paper Innovation”
・ Cultivate Autonomous Human Resources
・ Open-minded Organization

KPP Group Charter
Paper Innovation
DNA Supporting The Organization

6

I

Transition to a Holding Company Structure

II

Summary of Financial Results for the Second Quarterof the Fiscal Year Ending March 2023 and Forecast
for the Full Fiscal YearIII

Progress in the Third Medium-Term PlanIV

Reference Materials

7Summary of Financial Results for the Second
Quarter of the Fiscal Year Ending March 2023

Financial Highlights and Performance Summary

Continuing from the previous fiscal year, we achieved record sales and profit for the first half of the fiscal year.
Net sales• Sales increased significantly in Northeast Asia, Europe/South America, and Asia Pacific due to higher sales prices.

Operating profit• Gross profit rose particularly in Europe and Oceania, resulting in a sharp increase in profit year-on-year.
• Sales and profit increased in Japan due to growing sales of used paper and pulp.

Ordinary profit• Although the variance in % between FY March 2022 and 2023 was lower than that of operating profit
due to the absence of the gain on reversal of allowance for doubtful accounts that occurred in the previous
fiscal year, profit increased significantly.

FY March 2023

FY March 2022
(JPY million)

Result for the first six
monthsResult for the first six
monthsVariance in amount

Net sales

269,133

320,699+51,565+19.2%

Gross profit

43,94460,029+16,084+36.6%

SG&A

40,12247,729+7,607+19.0%

Operating profit

3,822

12,299+8,477+221.8%

Ordinary profit

4,205

11,067+6,861+163.1%

Profit attributable to owners of parent

3,485

9,186

+5,700+163.6%

Variance in %8Summary of Financial Results for the Second
Quarter of the Fiscal Year Ending March 2023

Results by Segment

Segment profit of overseas bases increased by + 273.8%
Domestic bases• Revised sales prices for paper and paperboard. Net sales and gross profit both increased year-on-year.
• Both sales and profit of used paper and pulp rose sharply due to higher sales prices and improved gross profit margins.

Overseas bases• In the paper business, market prices rose due to a series of price revisions. Sales are much higher than a year ago.
• Packaging and visual communication businesses remain strong. Sales are higher than a year ago.

Real estate leasing• Sales and profits fell year-on-year due to a decrease in rental income resulting from redevelopment of rental parking lots
and tenant replacement at the KPP Yaesu Building, which led to the occurrence of vacancy periods.

FY March 2023

FY March 2022
Result for the first six
months(JPY million)

Wholesale pulp andpaper, overseas bases

Real estate leasing

Total

Variance in amount

Variance in %Profit ratio

13.9%

Net sales

269,133

133,675
3,611
2.7%
186,431
10,287
5.5%
592
58
9.8%
320,699

3,822

12,299+8,477+221.8%

1.4%

3.8%

-

+2.4pt123,863

Net sales

Wholesale pulp andpaper, domestic bases

Result for the first six
monthsSegment profit

2,447

Profit ratio

2.0%

Net sales

144,647

Segment profit

2,752

Profit ratio

1.9%

Net sales

622

Segment profit

86

Operating profit(after adjustment forcorporate expenses, etc.)+9,811+7.9%+1,164+47.6%-+0.7pt+41,783+28.9%+7,535+273.8%-+3.6pt(29)(4.8%)(28)(32.6%)-(4.1pt)+51,565+19.2%*

Profit ratio*Corporate expenses, etc.: general administrative expenses in the administrative divisions of the head office that do not belong to the above segments.

9

Summary of Financial Results for the Second
Quarter of the Fiscal Year Ending March 2023

Results by Region and Business Sector (Reference)

Results by region • Of the current reportable segments, we plan to reclassify two segments—“Wholesale pulp and paper,(approximation)

domestic bases” and “Wholesale pulp and paper, overseas bases”—into three segments: “Northeast Asia,”“Europe/South America,” and “Asia Pacific.”

Wholesale pulp and paper,
domestic bases

Wholesale pulp and paper,
overseas bases

Real estate*No change to Real Estate

Before adjustment forinternal sales

Net sales
Before adjustment forcorporate expenses, etc.

Operating profit

Northeast Asia

Europe/SouthAmerica

Asia PacificReal estate

Internal sales
adjustment/Corporate
expenses adjustment

aroundJPY 152 billion

aroundJPY 149 billion

aroundJPY 23 billion

around
JPY 0.6 billion

aroundJPY (4.1) billion

aroundJPY 3.6 billion

aroundJPY 9.1 billion

aroundJPY 1.1 billion

around
JPY 0.05 billion

aroundJPY (1.6) billion

The above amounts are approximate amounts calculated based on the situation before the transition to the holding company structure.

Results by business segment
Consolidated net sales

Consolidated gross profit

Chemicalproducts &Machinery, etc.
8.5%

Chemicalproducts &Machinery, etc.
3.3%

Visualcommunication
6.1%

Visualcommunication
8.9%

Paper rawmaterial
7.7%

Packaging
13.9%

Paper and
Board
63.7%

Packaging
23.0%

Paper and
Board
59.4%

Paper rawmaterial
5.3%

10

Summary of Financial Results for the Second
Quarter of the Fiscal Year Ending March 2023

Increase/Decrease Factors in Operating Profits (Year-on-Year)
19,906(JPY million)

6,432

12,299(7,607)

13,474(Of which, the effect of thedepreciation of the yen: 391)

9,652

3,822

(1)

(2)
(Increase in sales)(3)(Profit margin improvement)

Significant contribution from overseas business to a large increase in operating profit(1) Gross profit (effect of sales increase) +9,652‐ Profit increased significantly due to higher sales prices in Northeast Asia, which is the region led by Kokusai Pulp and Paper;
Europe and South America, led by Antalis; and Asia Pacific, led by Spicers.
(2) Gross profit (effect of improved gross margin) +6,432- Consolidated gross profit margin rose sharply from 16.3% to 18.7% (+ 2.4%). Profit margins increased significantly in Europe and Oceania in particular,
due to the characteristics of the stock business (inventory sales).
(3) SG&A +7,607(Main factors)• Selling expenses: Increased mainly due to higher freight costs as the prices of raw materials and fuels rose worldwide.
• Labor costs: Up in Europe as a result of higher incentives due to strong sales.
• Amortization of goodwill: Increased due to the implementation of M&A in Europe and Asia Pacific in the current fiscal year.
• Travel and transportation expenses: Increased due to active sales meetings in the regions where COVID-19 is under control.

11

Summary of Financial Results for the Second
Quarter of the Fiscal Year Ending March 2023

Change in Balance Sheet (Compared with March 31, 2022)

March 31, 2022

September 30,
2022

Variance inamountMarch 31, 2022

September 30,
2022

Variance inamountCurrent assets

210,523233,231+22,707

170,164

199,387+29,223

Cash and cash
equivalents

22,634

20,375(2,258)(Notes and accounts payable trade, electronically recorded
obligations - operating)

94,503

103,701+9,198

126,965

133,101+6,135

Short-term borrowings

37,61550,300+12,685

Merchandise andmanufactured goods

51,25071,861+20,610

Fixed liabilities

64,16753,634(10,533)

Tangible fixed assets

34,19636,591+2,395Long-term borrowings

42,62230,120(12,502)

Intangible fixed assets

9,248

13,329+4,080234,332

253,021+18,689

Goodwill

4,508

7,939

+3,43038,22546,752+8,52736,73837,553+815

Total net assets

56,374

67,684+11,310

290,707

320,706+29,999

Total liabilities andnet assets

290,707

320,706+29,999(JPY million)

Accounts receivable(Notes and accounts receivable,
electronically recorded monetaryclaims)Investments and otherassetsTotal assets┃ Main factors of change•••

Current liabilities
Accounts payable(including commercial paper)

Total liabilities
Retained earnings┃ Financial strength and profitability indicators

Merchandise and manufactured goods :Inventory increased due to growth in the stock business (inventory sales) inEurope and Oceania.
Kokusai Pulp & Paper has an offshore inventory of pulp.
Goodwill: Increase due to M&A implemented in Europe during the current
fiscal year.
Interest-bearing debt: Transferred to short-term borrowings from long-termborrowings due to the arrival of maturity.

• DE ratio improved from 1.4 times to 1.2 times(Net DE ratio 1.0 time → 0.9 times)* DE ratio: Interest-bearing debt / net assets* Net DE ratio: (Interest-bearing debt − cash and deposits) / Net assets• Equity ratio increased from 19.4% to 21.1%• ROE (2023/3 2Q) 14.8% (* 2022/3 2Q: 7.5%, 2022/3 4Q: 15.0%)┃ About ratings• Domestic CP rating : J1, up from J2• Long-term issuer rating: newly acquired A-(JPY million)

Building a system thatenables flexible anddiverse financing• ROE (2023/3 2Q)

3.0% (* 2022/3 2Q: 1.4%, 2022/3 4Q: 2.7%)
12

Summary of Financial Results for the Second
Quarter of the Fiscal Year Ending March 2023

Change in Cash Flows (Year-on-Year)

Result for the firstsix months of FY
March 2022

Result for the firstsix months of FY
March 2023

Cash flows from operating
activities(4,886)

7,807

Cash flows from investing activities(1,340)(5,169)・ Acquisition of shares of subsidiaries (4,569)
・ Acquisition of tangible and intangible fixed assets (2,230)
・ Sale of tangible and intangible fixed assets +1,927
・ Decrease in short-term borrowing and commercial paper (5,443)
・ Repayments of lease obligations (2,564)
・ Dividends paid (659)・ Increase in long-term debt +1,673(JPY million)

Main breakdowns
・ Income before income taxes +11,647 ・ Increase in trade payables +5,011
・ Depreciation +3,643 ・ Increase in accrued expenses +1,995
・ Increase in inventories (14,887)

Cash flows from financing activities(12,097)(7,002)

Translation difference for cash andcash equivalents

1,149

2,104

Increase (decrease) in cash andcash equivalents(17,175)(2,259)-Cash and cash equivalents at the
beginning of the period

30,543

22,631-

Cash and cash equivalents at theend of the period

13,36820,372-・ Foreign currency translation adjustments of cash and loans receivablefrom foreign subsidiaries etc.

Basic policy on cash management
・ Based on the basic policy of the Third Medium-Term Plan, cash flows from operating activities are used for investment activities.
We will maintain this policy.
・ Going forward, we will also utilize cash inflows from financing activities for investment depending on the size of the project.
13

Forecast for the Fiscal Year Ending
March 2023

Revisions to Full-Year Earnings Forecasts

Compared with the previous forecast(JPY million)

Previous
forecast

Revisedforecast(May 13, 2022)(November 14, 2022)

Year-on-year comparison

Variance inamountVariance in%(JPY million)

FY March 2022
Results

Revisedforecast(November 14, 2022)

Variance inamountVariance in%

Net sales

590,000

650,000+60,000+10.2%Net sales

563,414650,000+86,585+15.4%

Gross profit

97,000119,000+22,000+22.7%

Gross profit

92,951

119,000+26,048+28.0%

SG&A

85,00098,000+13,000+15.3%

SG&A

83,571

98,000+14,428+17.3%

Operatingprofit12,00021,000+9,000+75.0%

Operatingprofit9,379

21,000+11,620+123.9%Ordinary
profit9,400

18,500+9,100+96.8%

Ordinary
profit8,844

18,500+9,655+109.2%7,500

15,000+7,500+100.0%7,497

15,000+7,502+100.1%

Profitattributable to owners ofparentProfitattributable to owners ofparent┃ Summary of revisions to earnings forecasts
Operating profit(JPY million)•

21,0008,700

12,299••Reason for the revision‐ Antalis S.A.S., which operates mainly in Europe, had a series of pricerevisions in its paper business, and JPY has weakened comparedwith the previous year.
‐ Despite concerns about a potential recession caused by tight monetary policy,
geopolitical risks, and other factors, we made an upward revision to theforecast in light of the performance through the second quarter.
Changes in assumed exchange rates‐ Assumed exchange rates for the fiscal year
(average exchange rate for the fiscal year)
JPY 138/EUR , JPY 91/AUD, JPY 133/USD
Outlook for the second half
‐ Sales prices are expected to remain at the level of the 1H of the fiscal year,
but we forecast that the financial results will be weaker than they were in the
1H due to concerns about a potential recession in Europe and the impact ofChina’s zero-COVID policy.

14

Forecast for the Fiscal Year Ending
March 2023

Shareholder Returns (Dividend Forecast)
Change in cash dividends per share

Expected annual dividend: JPY 20(Dividend to commemorate the conversion to aholding company: JPY2)

(JPY)

20
18
16
14

12

(Dividend to commemorate thelisting: JPY2)

10
8
6
4
2
0
FY March 2018

FY March 2019

FY March 2020

FY March 2021

FY March 2022

FY March 2023

Basic policy on dividends
Recognizing the return of profits to shareholders as one of the most important management issues, wewill pay dividends on a stable and continuous basis, and improve corporate competitiveness andshareholder value by enhancing and effectively utilizing retained earnings.
• FY March 2022 (previous fiscal year)- As acquisitions of Spicers and Antalis contributed significantly to the Group’s earnings and solidified the earning base for the full year, we
paid an interim dividend for the first time.

• FY March 2023 (current fiscal year)- In addition to the commemorative dividend of JPY 2 for the transition to a holding company structure, we announced a dividend
increase of JPY 3 reflecting its strong performance.
The annual dividend forecast was raised to JPY 20 from the initial forecast of JPY 15.
15

I

Transition to a Holding Company Structure

II

Summary of Financial Results for the Second Quarterof the Fiscal Year Ending March 2023 and Forecast
for the Full Fiscal YearIII

Progress in the Third Medium-Term PlanIV

Reference Materials

16

Progress in the Third Medium-Term Plan

Targets for the Final Year 2025 of the Third Medium-Term Plan

Aiming to increase both sales and profits with more profitability(JPY million)

FY March 2022

FY March 2025

Growth rate

Net sales

563,414650,000+15.4%

Operating profit

9,379

14,500+54.6%

Operating margin

1.7%

2.2%

+0.5ptNet profit

7,497

9,000

+20.0%

ROE

15.0%

12.0% or more

-

ROA

2.7%

2.5% or more-

Measures to achieve targets
・ Improvement in profitability: Increase in sales
and operating profit ratio, etc.

・ Improvement of asset efficiency: Group business
management through ROIC, etc.

Targets for improving financial position

DE ratio*1

Capital adequacy ratio

FY March 2022

FY March 2025

1.4 times

1.0 time or less

19.4%

25.0% or more

*1. DE ratio: Interest-bearing debt / net assets

17

Progress in the Third Medium-Term Plan

Promoting Inorganic Growth (M&A/Alliance)

Aim for medium- to long-term growth by promoting inorganic growth (growth through acquisition of
external resources) as well as organic growth (growth through internal resources)

Organic Growth

Inorganic Growth

Expansion of recycling-based
business models

Expanding business domains
by acquiring external management resources
Total amount: JPY• Further expansion of recycling-oriented
businesses by balancing used paper businesswith product sales• Strengthen pulp business, including raw
materials for sanitary paper• Maximize profits by expanding the share of thepaper and paperboard wholesale business,and promoting e-commerce, while reducing
expenses• Expansion of solution businesses

20 billion (in three years)• Target business for M&A
Visualcommunication
business

Packagingbusiness

Other processing
businesses• Management resources to be acquired
Portfolio

Human
resources

Management
know-how

Offices andfacilities

18

Progress in the Third Medium-Term Plan

Regional Strategy Summary

Overseeing the global operations with the three pillars: KPP, Antalis and Spicers “North and South America”
and “Southeast Asia and India” start to fully expand businesses from the Third Medium-Term Plan.
Company inchargeKokusai Pulp &Paper

Area in charge

Final year of the Third
Medium-Term Plan

Sales Target

Strategy Overview

JPY 320 billion

・ Expand sales of paper and board by reviewing marketing methods focusing
on e-commerce while ensuring sales share and profits.
・ Promote comprehensive recycling-oriented business.
・ In China, increase both sales and profit by expanding sales volume in linewith market expansion.

EuropeJPY 250 billion

・ For paper & board, maintain the number 1 position in the region,and secure revenue and profit growth.
・ Packaging and visual communication businesses will make good useof the inorganic strategy to expand while capturing market expansion.
・ Promote e-commerce in all three businesses for further improvementof profit margin ratio.

North and SouthAmerica

JPY 20 billion

・ Consider full-scale entry into North America and implement inorganic strategy.

JPY 35 billion

・ Increase profitability by maintaining the market share in paper and board
in the region and promoting e-commerce.
・ Utilize inorganic strategy for packaging and visual communicationand pursue M&A actively.
・ Further promote adhesive labels as a product segment.

JPY 25 billion

・ Complete organizational restructuring. Promote business by utilizing know-how
under the control of Spicers.
・ Aim for growth by capturing market expansion in the area of paper and board,packaging and visual communication.

Northeast Asia

(KPP)

AntalisOceania
Spicers
Southeast Asia
and India

19

Inorganic Growth/M&A Strategies of Antalis and Spicers

Progress in the Third Medium-Term Plan
Antalis’ M&A strategy

Enhance Antalis’ presence in the market by acquiring companies that provide customized solutions in growth areas such as
packaging and visual communication to strengthen Antalis’ products and services.

Spicers’ M&A strategy
Build a strong Spicers brand by acquiring companies in the fields that have an affinity with its existing businesses such as
packaging and visual communications. At the same time, aim for further growth by acquiring experienced personnel.

M&A activities conducted by Antalis and Spicers
2019
Spicers
Business: Sales of paperrelated products
Location: Australia,
New Zealand

2020
Company A
Business: Sales of paperrelated products
Location: Australia

AntalisBusiness: Sales of paperrelated products
Location France (Paris)

2021

2022

Company B

Company E

Business: Visual communication
Location: Australia

Business: Visual communication
Location: Switzerland

Company H
Business: Packaging(food packaging)
Location: Australia

Company C

Company F

Company I

Business: Visual communication
Location: New ZealandBusiness: Visual communication
Location: Singapore

Business: Packaging
Location: Spain

Company D
Business: Packaging(industrial packaging)
Location: New ZealandCompany G
Business: Packaging
Location: Germany... M&As by Antalis: 3 companies in total (visual communication business: 1, packaging business: 2)... M&As by Spicers: 6 companies in total (paper business: 1, packaging business: 2, visual communication business: 3)
20

Progress in the Third Medium-Term Plan

Marketing Initiatives

We established the Marketing Office, which provides company-wide support for the realizationof the basic policies of the Third Medium-Term Plan for domestic businesses, such as“Reform of sales methods,” “Transformation of sales and service content,” and “Low-cost management.”• Increase sales and maximize profitability by streamlining the sales
and marketing process, thereby realizing sustainable corporate development
and purpose management
MissionGoals(setting up a purpose that expresses what kind of significance we have and what kind ofcontribution we will make in society, and conducting management based on it)• Market development for new businesses and paper wholesale businessby utilizing marketing• New business model services using data-driven and digital technology
in the paper wholesale business → Creating new value (value proposal)•

Introduce digital efficiencies in some sales and marketing processes- Marketing field: Utilization of digital marketing (new businesses and paper

Strategywholesale business), service site *, web advertising/SNS, webinars, MA- Sales field: Building new business models with DX (paper wholesale business),
CRM, SFA, B2B e-business, EDI

Create new value from paper and transform into a company that offers sustainable solutions*Service site

(SHIFT ON)

has started operation.

Analyze the potential needs of customers from the three perspectives of “environment/functional materials,” “packaging,” and “sales promotion,”
thereby providing solutions that can be realized with materials and systems.
- Solve important management issues such as improving operational efficiency, reducing costs, reforming work styles.
(Details are provided on page 40 of this material.)

21

Progress in the Third Medium-Term Plan

Sustainability and ESG Management

KPP Group Basic Sustainability Policy
We, the KPP Group, contribute to the realization of a sustainable society through the development of comprehensive recycling-oriented
management based on the basic philosophy of the “KPP GROUP WAY”. We also regard the environment, society,and governance as important management issues, and are committed to resolving critical issues related to our business activities.

Material Issues of the KPP Group
Global Expansion
・ Creation of group

・ Internal communication

synergies

Response to DX
・ Expansion of・ Development of
e-commerce

Climate Change Countermeasures
・ Development of solutions to
・ Reduction of
prevent global warming

CO2 emissions

new systems

Diversity & Inclusion
・ Ensuring
・ Utilization ofdiversity

Implementation of Green Business・ Resolution of the marine
・ Recycling and waste
plastic pollution problem

Enhancement of Governance・ Compliance・ Information

diverse personnel

security

reduction

・ Risk management

ESG Management Initiatives
Reduction of GHG Emissions

We have established a method for measuring emissions and started measuring them globally.
Gradually broaden the scope and set goals for the entire group.

E

Implementation of Green
Business

In addition to Green Products, we aim to achieve global results in Europe and Oceania.

S

Utilization and Developmentof Diverse Human Resources

Expansion of Environmentally We promote recycling-oriented business through our nationwide used paper collection network, material recycling
with our "ecomo series" used paper collection solutions, and biomass power generation support business.
Friendly Businesses* Targets for Japan (Kokusai Pulp & Paper)

Development of Risk andIncident Management

G

Continue to respect work-life balance, employ people past retirement, employ people with disabilities, foreigners,
and mid-career employees.
Continue various types of training (by level, harassment, etc.) and education. Promote business activities
with consideration to forests and biodiversity. Creating a safe, healthy and fulfilling work environmentthat takes into account the circumstances of each region.
Develop global management rules, global risk maps, and risk action plans.

Risk-based Implementation of Examination, preparation and construction of risk-based internal audits based on awareness of global risks.
Introduction and implementation of audit plans/methods and advancement of audit methods, based on the above.
Internal Audits
Strengthening Compliance

Promote surveys of core operating companies and establish a reporting system equivalent to risks and incidents.
Strongly promote compliance education at overseas bases, as necessary.

Strengthening Information
Security

We will strive to strengthen risk management by identifying the responses to risks revealed
in risk assessments conducted by core operating companies and the status of responses.

22

ESG Initiatives - Tokyo Office

Exhibiting “Kami no ito OJO+”OJO+ was exhibited at the Sustainable Fashion Expo (October 18–20, 2022 at Tokyo Big Sight)

・ Exhibited “Kami no ito (paper yarn) OJO+” products from Oji Fiber,
which are lightweight and excellent in water absorption, quick-drying
property, toughness, deodorization, dyeability and biodegradability.
- Exhibited environmentally friendly products and services for the fashionindustry, such as paper face covers, paper inner bags, paper hangers,
and paper hooks, which use environmentally friendly paper productswith the ratio of at least 70% of the material.
* The acquisition of shares in Oji Fiber is described on page 41 of this material.

Exhibitor PR Seminar“The Attractiveness of OJO+ Socks” from the Viewpointof Professional Athletes and Producers
Invited Yuko Arimori, a former professional
marathon runner, and Mr. Kita,
Senior Managing Director of KITAI Co., Ltd.,
which produces OJO+ socks, to talk about
the appeal of functional socks made of
OJO+ paper yarn.

23

ESG Initiatives - Tokyo Office

Conclusion of a Sales Distributor Agreement with Ranpak

In September 2022, a sales distributor agreement was concluded between Ranpak B.V. (“Ranpak”),
the largest provider of product protection solutions with paper cushioning material, and Kokusai Pulp & Paper
Details of Ranpak’s business
A leading company in the field of paper cushioning material, providing packaging solutionsin 50 countries around the world by selling paper packaging materials including protective
material and leasing packaging equipment.
Reason for and purpose of the agreement
Switching from plastic to paper protective packaging makes it possible to decrease
environmental impact, significantly reduce time required for packaging, standardize
packaging operations, and cope with busy seasons.
This agreement was concluded in anticipation of growing demand for paper cushioning
materials in Japan, particularly in the EC industry.
→ Antalis was originally a Ranpak distributor in Europe.

We will continue to actively pursue the creation of business synergies
among KPP Group companies and the promotionof environmentally friendly products through information exchange.

Paper cushioning

Gap filling

Packaging

Cold chain

Packing equipment(example)

Exhibiting at the Next-Generation EC & Store Expo (October 26–28, 2022 at Makuhari Messe)• Demonstration of high-speed generation of paper
cushioning material• Exhibited environmentally friendly products andservices for the industry, such as water-soluble ducttape, all-paper cushioned envelopes as packaging for
posting items, and packaging materials coated with
self-adhesive glue

24

ESG Initiatives - Paris Office

Coala Air Board

Coala Air Board• “Coala” is Antalis’s own brand for visual communication products• Coala Air Board is paper-based board with a honeycomb-like core structure inside,which is an environmentally friendly alternative to traditional synthetic rigid
substrates (*1).
- Ranked the highest 5 stars in Antalis’ Green Star System (*2)
- Made of 100% recyclable paper, a more sustainable alternative tohard-to-recycle fossil materials- The product is sustainable and can be used in a wide range of applications
from exhibition stands to art installations*1 Boards using fossil resources such as plastic.
*2 Antalis’s original system for objectively evaluating the environmental impact of products by analyzing the origin of raw materials and recyclability.

25

ESG Initiatives - Melbourne OfficeEnvirons

Sustainability catalog “Environs”• A sustainability catalog Environs was released. It features a full collection of products that contributeto reducing environmental impact.
• In addition to introducing paper-based products, Environs includes various contents such as
Spicers' Sustainability Statement, sustainability goals and practices and tips to consider when designing products.
• Spicers will continue to create innovative and sustainable solutions to meet the needs of today's market
and to ensure a healthy global environment for future generations.

26

I

Transition to a Holding Company Structure

II

Summary of Financial Results for the Second Quarterof the Fiscal Year Ending March 2023 and Forecast
for the Full Fiscal YearIII

Progress in the Third Medium-Term PlanIV

Reference Materials

27Summary of the Third
Medium-Term Plan

Long-Term Vision “GIFT + 1 2024”

The Third Medium-Term Plan is the final stage of the long-term vision “GIFT + 1 2024”- Toward “GIFT + 1 2030” and “NEXT 100” years
The Third Medium-Term Plan Period

Focusing on Overseas Markets

Expansion of raw material
business

NEXT 100

Global Management
Establishing a Comprehensive
Recycling-Oriented Company
Completion toward “NEXT 100”

Investment in growth engines
and overseas expansion
Strengthening profitability

Reorganization of businessportfolio

Antalis became aconsolidated
Spicers became asubsidiaryconsolidated(July 2020)
Newly listed on thesubsidiaryTokyo Stock(July 2019)
Exchange

Current

Transition to a holding company structure
Company name changed to
KPP GROUP HOLDINGS(October 2022)(June 2018)

Business structure reformperiodFY March
2017

FY March
2018

FY March
2019

The First Medium-Term Plan

Business development
periodFY March
2020

FY March
2021

FY March
2022

The Second Medium-Term Plan

Long-Term Vision “GIFT + 1 2024”

Business
completion period

FY March
2023

FY March
2024

FY March
2025

The Third Medium-Term Plan

GIFT + 1 2030
28

Summary of the Third
Medium-Term Plan

Themes of the Third Medium-Term Plan

Theme
Achieving the Long-Term Vision “GIFT + 1 2024” andfor the 100th Anniversary of the Company

Messages
Contributing to a sustainable society through recycling-enhancing business andincreasing corporate value through business portfolio reform

Strengthen global group management

Establish and deepen profit base

• Maximize profits of each operatingcompany• Promote strategic alliances and M&A• Pursue global synergies• Promote DX (Digital Transformation)✕• Realization of ESG management• Establish a global operations system• Strengthen group communication• Appropriate allocation of management
resources29

Summary of the Third
Medium-Term Plan

Net Sales and Gross Profit by Business Segment

Continue to promote business portfolio reforms under the Third Medium-Term Plan
Final year of the Second
Medium-Term Plan

Final year of the Third MediumTerm Plan (targets)

FY March 2022

FY March 2025
JPY 650 billion
455

JPY 563.4 billion
Chemical products &Machinery, etc.
Visual communication

309

Packaging

776

Paper raw material

439

Board

605

650

500

+79.7%
1,300

JPY 92.9 billion

93

29

520
975

244
Paper

JPY 108 billion
25
183+67.6%
382

47
30

3,006

52
45

2,600
486
393

Net sales

Gross profit

Net sales

Gross profit

Ratio of visual communications and packaging businesses with higher gross margins to rise30

Summary of the Third
Medium-Term Plan

Cash Flow Allocation
Increasing corporate value by growth investment within operating cash flow
Improving our financial position by accumulating retained earnings
Maintaining a net debt-to-equity ratio of less than 1× and increase equity ratio to 25% or more

Shareholder returns are based on an appropriate amount of retained earnings

Cash inflow

Cash outflow

Sale of fixed assets andcross-shareholdings
Cash and +Return of fund management
deposits
Collection of doubtful debt

Repayment of interest-bearing debt

Operating cash flow
Three-year cumulative amountJPY

36.0billion

Growth Investments
Investment amount used forinorganic strategy (M&A, etc.)
approximately JPY

20.0billion(free cash flow)

JPY

23.0billion

Retained earnings

Shareholder returns (dividends)
Use of external funds
31Summary of the Third
Medium-Term Plan

Domestic and Overseas Business Models in the Paper BusinessHybrid and global deployment of three business models in different regions

Paper Trading type

Paper Distribution type

Paper Merchant type

Overseas business model

Domestic business modelBusiness models in Europe and America

MissionMissionMissionTrading business utilizing global
network in paper, paperboard
and paper materials

Paper-related wholesale businesscombining indent business(consignment sales) with stockbusiness (inventory sales)

High-value-added business through cutting
and processing and sales of own-brandproducts with large-scale logistics
and delivery functions

Gross margin* ratio

Gross margin* ratio

Gross margin* ratio

approx. 3%

approx. 6%

approx. 25%*Gross margin ratio in normal times

Maximizing profitability and efficiency by developing various businessmodels appropriate for each region
32Summary of the Third
Medium-Term Plan

Comprehensive Recycling-Oriented Business Model in Japan

Building a comprehensive recycling-oriented business model contributing to the realization of a sustainable society
Material recycling

Reduction of GHG Emissions

Contributing to the realization of a circular economy
through recycling-oriented business⚫

Town ecomo

Office ecomo

Utilizing the collection network of used paper wholesalersthroughout Japan.
Collected used paper is delivered to paper manufacturers
as raw materials for paper (recycling material)⚫

*see “Paper Raw Materials Business” on page 36 of this material.
⚫

⚫

⚫

Used paper collection solution business using
our originally developed Town ecomo and Office ecomo.
Provision of the ecomo Closed Recycling Service,
which visualizes resource emissions, recycling routes,
and recycling volumes

Forests

Pulp
manufacturers

Contributing to reducing greenhouse gas emissions
through projects to support biomass power generation

Collection bins for usedpaper are installed at
supermarkets and other retailstores. Old newspapers andmagazines are brought fromhome for recycling. Points
are given according to theweight.

Development of BMecomo, an operation support
system for biomass power plants using AI and IoTtechnologies
Purchase unused wood, waste wood, and scrap wood,and supply them to biomass power plants

Confidential documents
generated in corporate offices
are collected to convert theminto recycled paper.
Significantly reducing the timeand effort required forshredding and contributing to
the environment

Sawmills/
Construction sites

BM ecomo
Forests
Distribution

Distribution

Collection

Offices/Households

Paper
manufacturers

Material
recycling

Distribution
Printing/
Processing
companies

Reductionof GHG
Emissions

https://bmecomo.com/
Consumers

BM ecomo supports daily operations and business
management by gathering and analyzing all data obtained
from biomass power plants, utilizing the latest technology
and providing visualization, thereby helping maximize theprofits of biomass power plants.
Purchase waste wood from construction material
manufacturers and supply it to biomass power plants.

Power
Stations
Supporting
operation

33

Reference
Materials

Company Profile

A group of paper merchants with a 98-year history
Company Name
Established

KPP GROUP HOLDINGS CO., LTD.
November 1924

Representative

Madoka Tanabe, Chairman & Chief
Executive Officer
Tadashi Kurihara, President

Head Office
Address

6-24 Akashi-cho, Chuo-ku, Tokyo

Capital■ Number of Countries■ Number of Cities

147■ Number of Bases

157

JPY 4,723 million

Employees

45*As of March 31, 2022

5,410 (consolidated) *As of September 30, 2022

Status of shareholders
March 31, 2022
Oji Holdings Corporation

17.3%

Nippon Paper Industries Co., Ltd.

9.2%

The Master Trust Bank of Japan, Ltd. (trust account)

6.9%

Kokusai Pulp & Paper Co., Ltd.
(stock ownership association)

3.4%

Principal Hokuetsu Corporation
shareholMizuho Bank, Ltd.
ders
(As of September 30, 2022)

Foreigncorporations, etc.
3.68%

Trust banks
13.35%

3.4%
2.5%

Mitsui Sumitomo Insurance Company, Limited

2.4%

MUFG Bank, Ltd.

2.3%

Sumitomo Mitsui Banking Corporation

2.3%

The Norinchukin Bank

2.3%

Financial
institutions
17.95%

Other
corporations
Share ownership 39.57%
ratio
by owner

Individuals andothers25.46%

September 30, 2022

Foreigncorporations, etc.
7.44%

Trust banks
13.11%

Financial
institutions
17.20%

Share ownershipratio
by ownerOther
corporations
38.90%

Individuals andothers23.35%

34

Reference
Materials

Paper and Paperboard Business (Domestic)

Paper
Deals in newsprint, printing paper, and information-related paper.
There is a wide range of paper types, and we make proposals that match the properties
and characteristics of each type of paper depending on the application.

Paperboard
Paperboard is mainly classified into “container board” and “folding box board” and is widely used
for packaging.
“Container board” is the base paper used to make corrugated boxes, and accounts for about
80% of all paperboard.
“Folding box board” is the base paper for paper boxes such as candy, tissues, cards, etc.

Paper manufacturers

Users

Paper
Merchant（Secondary trading）

Printing companies,
newspaper companies,
publishers,
stationery manufacturers,
wrapping paper manufacturers,
packaging paper manufacturers,
etc.

Consumers
Product

Kokusai Pulp &Paper• Independent common distributors- Primary paper distribution is mainly classified into paper manufacturer affiliates, general trading company affiliates,
and independent common distributors
35

Reference
Materials

Paper Raw Materials Business (domestic)

Paper raw material (pulp and used paper)
Currently, approximately 40% of the raw material consumed by the entire paper industry is pulp,
and the remaining 60% is used paper.
We use our domestic and international network to procure pulp and used paper,and to sell them to paper manufacturers.

Artery Business（ Product Sales ）Annual sales results
approx.

1.8million tons

Paper・
Paperboard◆

Processing/sales
companies

Secondarywholesaler/user◆

Purchase paper
and paperboard◆◆

Products

Inventory anddelivery functions
Financial Functions
Information function

Paper and
paperboard
business

Final users

Paper manufacturer

Companies Home◆
Annual collection
results
approx.

1.1million tons

Collect used paper

Used Paper◆◆

Deliver to paper manufacturers
Informational functions

Vein Business（ Collecting used paper ）Used Paper

Collection

Paper rawmaterials
business

旅行
Wholesaler of used
paper

Government ・ Group collection /Collection agency
KPP's collection system(Town ecomo, Office ecomo)• Recycling industry through recycling of used paper- Japan’s paper industry is characterized by the recycling of used paper.
- Kokusai Pulp & Paper plays an important function in this process and has been working for many
years toward the realization of a sustainable society.
36Reference
Materials

Packaging Business (Customized Solutions)Customized solutions (Antalis)
Experts who provide customized solutions that meet customer needs for a wide range of packaging material Providing services
in a wide range of industrial fields, including automobiles, electronics, high-tech, machinery, metals, food, chemicals and so on.
ExpertInquiries from Customers✓ What protection does the product need?
✓ What are the transportation modes androutes, and the situation of on-site
inventory?
✓ What do your internal logistics look like?
✓ What about the disposal after use?

We have products that need
protection, but we can’t find astandard packaging solution to meet
our needs.

・Carefully consider customers unique cases and develop a solution that meets their requirements
・Procurement of the highest quality packaging materials at competitive prices through a broad network of suppliers and manufacturers
Packaging Design Center

Providing a variety of packaging materials (examples)

Corrugatedcardboard

FoamcushionAir
cushionPaper
cushionHoneycomb panel

Gap filling buffermaterial

Firm
packagingmaterial

Bag-type air
cushioning
material

Corrugated
foam

37

Reference
Materials

Visual Communication BusinessWe provide solutions and products ranging from large-format inkjet printers to inks and otherconsumables, and materials for indoor and outdoor signage, displays, and car wrapping.
- Experienced marketing teams provide high-level user support.

Outdooradvertisements

Vehicle graphics
1

COALA STICKY
WALL S

2

COALA ROLL-UP
ECO

3COALA ROLL-UP
PET S

4

COALA
ORGANZA

5COALA
INTERIOR FILM

6

STADUR SIGNEASYPRINT BLACK

7

COALA FLOOR &WALL R

8

DIBOND

Various examples of installation

RetailHotel

A view of the work

* Examples of projects in which products of Antalis' visual communication series were delivered in collaboration with architects, interior designers, printers and advertising agencies.

38Reference
Materials

Adhesive Label Business**Adhesive Labels Business ... Paper Business

Adhesive Label Business in Oceania
Providing services in all fields, including daily necessities, food and beverage, medical andpharmaceutical, logistics and distribution, and industrial-related fields.
- Propose to customers the best combination of surface materials, adhesives,
release paper and release film for various applications.
- Wide range of supply sources, especially in Asia and Europe- A large selection of approx. 100 different products.
- In-house slitting process provides added value, responding flexibly to customer specifications.
Daily Necessities

Logistics

Food & Beverage

OthersMedical Care

39

Reference
Materials

Digital Marketing Initiatives

Service site “SHIFT ON”- Part of our digital marketing initiatives. The goal is to create customer contacts and prospects.
At the same time, we will introduce marketing automation (MA) tools to sophisticate marketing.

https://shifton.kpp-gr.com/

Environmental and newfunctional materials solutions
Comprehensive support for the planning and implementation ofenvironmental projects, including SDGs and carbon neutrality.
Packaging solution
Helping customers solve their management issues through thedevelopment of packaging materials and original packaging.
Total solution for sales promotion
Comprehensive support for the policies of sales promotion tools
installed inside and outside stores, from material selection to supply.

Analyze the potential needs of customers from the three perspectives of “environment/functional materials,” “packaging,” and “sales promotion,”
thereby providing solutions that can be realized with materials and systems- Solve important management issues such as improving operational efficiency, reducing costs, reforming work styles, and improving corporate value

Customer concerns and issues
Sales are slow because of limited daily shipments
Improving
operational
efficiency

Packing is a bottleneck and shipping is not progressing smoothly
Too much cushioning

Standardiz
ing ofoperation

Different workers put in different amounts of cushioning material.
Quality of service is not standardized.
The speed of the packing work is different from line to line,
complicating management
Want to improve the packing skills of temporary workers
hired during the busy season
Do not know what to start with in terms of environmental initiatives

Greenefforts

Packing is a bottleneck and shipping is not progressing smoothly
Looking for alternative packaging that can contribute to SDGs

Operational improvement proposal
Improving operational
efficiency and leveling
operations through theintroduction of automatedmachines for packaging

Green material proposal
Achieve plastic-free
operations by changing someof the packaging materials
from petroleum-derived
materials to paper

40

Reference
Materials

Example of ESG Management Investments for Realizationof a Recycling-Oriented Society in Japan

Capital and business alliance with Amica Terra Co., Ltd.,
engaged in the sale and manufacturing of non-plastic products.

Oji Fiber Co., Ltd., which manufactures and processes paper yarn
and other textile products made from paper, became a subsidiary.

In February 2022, formed a capital and business alliance with Amica Terra
Co., Ltd., which is engaged in plastic substitute materials (modo-cell®)made mainly from plant fibers (cellulose).

In March 2022, Oji Fiber Co., Ltd. became a subsidiary, and it manufactures
paper yarn “Kami no Ito OJO+” made from Manila hemp.

Characteristics of modo-cell®

modo-cell®

Plants are the main raw material, and plant residues
that were previously discarded of can be used as
raw materials.
The main raw material is plants, and so it completely
biodegrades on the ground and in the soil.
No special mold is required for molding, andproducts can be manufactured using general plastic
molding machines.
Effective for disposing of abandoned bamboo forests
and agricultural waste
Possible to reflect the characteristics of plants usedas raw materials in products.

Features of Kami no Ito OJO+Lightweight and excellent in water absorption,quick drying property, toughness, deodorization,
dyeability and biodegradability.
Wide range of applications including artificial grass,apparel, night wear and daily necessities

Examples of products using Kami no Ito OJO+

Examples of products using modo-cell®

41

Reference
Materials

Example of ESG Management Green Products / Green Solutions

KPP Group’s Green Products

Promotion of
paper solutions

Due to the marine plastic pollution problem, moves to restrict disposable plastic are acceleratingin countries around the globe, and demand for paper as an alternative material is rising.
In recent years, research and development has been progressed mainly by paper manufacturers,
and there has been an increase in examples of food packaging and daily necessities.
Examples: Cutlery, clear folders, face covers, hangers, paper packaging, cushioning, packaging, etc.

Green
Products

Reduction ofplastic use

These products reduce the use of petroleum-derived plastic by innovating manufacturing technologies
and mixing in biomass-derived pulp and paper to an extent that does not detract from plastic’s
characteristics such as barrier properties and processing suitability.
Examples: Paper-made cold insulation box, paper + film packaging materials, waterproof & oilproof paper, etc.

Biomass
materials

As it is often difficult to switch plastic to other materials due to its various characteristics,
research is being conducted with the aim of reducing the environmental impact. Biomass plastic
manufactured using biomass materials and biodegradable plastic that is broken down
by microorganisms are some examples.
Examples: In-store point of purchase (POP) advertising, fishing equipment, cutlery, etc.

Paper-based clear folders

Try-on face cover for clothes shop

Reduced plastic cutlery

Artificial grass made of paper yarn

42

Reference
Materials

PAPER MALL (EC Site for Paper-Related Products)

https://www.kpps.jp/papermall/Our website “Paper Mall” offers approx. 1,000 types of general paper, specialty paper
and paper products, which can be purchased from a single sheet of paper.
Samples and sample books can be ordered free of charge, and we also offer a processing
service to cut general paper into desired sizes to meet a wide range of customer needs.
We have strengthened the lineup of our “Green Products” series of environmentally friendly
products (see below) to help all stakeholders who are working on SDGs.
This is a comprehensive paper-related website that makes the most of the strengths ofour company, a paper specialist, such as the ability to make prompt deliveries through the
network of KOKUSAI PULP & PAPER CO., LTD., the ability to check the latest paper-related
information such as paper industry news, and the ability to receive questions and consultations
about paper.

■ Green Products: Environmentally friendly products

・ Promotion of paper solutions
Microplastics are a cause of marine pollution. There is a need to develop materials
that can replace plastic.
We are working to change to paper, i.e., switching to products made from paper.

・ Plastic Reduction
We will reduce the amount of plastic used by mixing in other materials while maintaining
the properties of the plastic.
We are developing materials and products to reduce the amount of plastic used.

・ Bioplastics
https://www.kpps.jp/papermall/greenproducts/

Plastics that return to the soil as compost and do not remain after being decomposed by
microorganisms and other natural elements.
We are developing materials and products in search of the possibilities of biodegradable plastics
and biomass plastics.

43

Reference
Materials

Support for “The C.W. Nicol Afan Woodland Trust”

Since 2015, we have been supporting the C.W. Nicol Afan Woodland Trust, a general incorporated foundation,
as we respect Mr. C.W. Nicol’s wish to Restore Japan’s Beautiful Natural Environment and the Disaster
Recovery Project organized by the trust.

After Mr. Nicol moved to Japan, he bought a degraded forest
in Kurohime, Nagano Prefecture, and took care of it for more than
30 years, restoring it to a forest rich in biodiversity.
He died in April 2022 at the age of 79, but his goal wasto create a future 100 years ahead.
We will continue to support the trust and promote environmental
management to realize a sustainable society, respecting his wish
to expand biodiversity-rich natural environments throughout Japan.

Keynote address by Mr. C.W. Nicol
Mr. C.W. Nicol was invited to KPP
Group Holdings to give a keynote
speech at the 7th KPP Exhibition held
for three days from Monday, November
11 to Wednesday, November 13, 2019.
We have released a video thatexcerpts and summarizes part of the
speech. Follow the link below toaccess the video.
https://www.youtube.com/watch?v=z9MKE8_zwVc

44

Reference
Materials

Integrated Report / TSUNAGU (Public Relations Magazine)
Integrated Report (FY2022)

TSUNAGU (Vol.51)

A report including KPP’s financial and non-financial information.
It provides details of our ESG and sustainability strategies.

In addition to KPP news, the magazine introduces paper-based artists,traditional paper crafts, and various paper-related topics to readers
to rediscover a fascination with paper.

Contact
Corporate Communications Office
TEL:03-3542-4169
https://www.kpp-gr.com/en/contact/contact3.html

45

Disclaimer

This document contains forward-looking statements, future plans, and management targets related to
the Company.These forward-looking statements are based on current assumptions regarding future
events and trends and are not guaranteed to be accurate.
Actual results may differ materially from those presented herein due to various factors.

Unless otherwise stated, the financial data presented herein are presented in accordance withaccounting principles generally accepted in Japan.
The Company does not necessarily make any revisions to the forward-looking statements it has made,regardless of the occurrence of future events, etc., except when required by the Disclosure Rules.
Information relating to other companies is based on publicly known information.
This document does not constitute solicitation of offers to acquire, offer to sell, or offer to buy any
securities (hereinafter referred to as “solicitation”). It is not intended for solicitation activities, nor can it
be the basis for any contract or obligation.
This English document is just a translation of the Japanese document. Therefore, please use thisEnglish document only for convenience and refer to the original Japanese document as appropriate.

Contact
KPP GROUP HOLDINGS CO., LTD. Investor Relations Contact
https://www.kpp-gr.com/en/contact/contact3.html

46