Results of Operations for the
Fiscal Year Ended March 31, 2024
Tokushu Tokai Paper Co., Ltd. (Securities code: 3708)
May 28, 2024

Financial Information

Consolidated Financial Results

Consolidated Financial Results

Segment Information

Components of Changes
in Operating Income

FY3/25 Forecast

FY3/25 Forecast
Components of Change in
Operating Income

Ordinary income reached record high.
Second-highest sales and third-highest profit

YoY change(Millions of yen)

FY3/23

FY3/24

YoY change

Net sales

84,13086,517+2,387+2.8%

Operating income

1,640

2,296

+656

+40.0%

Ordinary income

4,058

6,188

+2,130+52.5%

Profit attributableto owners of parent

4,130

4,590

+460

+11.1%

3

Consolidated Financial Results

Segment Information

Segment Information

Components of Changes
in Operating Income

FY3/25 Forecast

FY3/25 Forecast
Components of Change in
Operating Income

Volume was somewhat low in all paper segments but price revisions supported monetary sales.
Big increase in sales and earnings in the environment related business because of the acquisition of Toei Co., Ltd. in
April 2023.
YoY change
FY3/23(Millions of yen)

FY3/24

YoY change

43,49342,455-1,038

977

1,282

+305

20,661

20,427

-234

615

495

-120

17,35818,151+793

Operating income

(139)

567

+706

Environment Related
Business

Net sales

8,502

11,875+3,373

84

122

+38

Elimination/
adjustment

Net sales(5,884)(6,392)

-508

101

(170)

-271

Net sales

84,13086,517+2,387

Operating income

1,640

2,296

+656

Industrial Materials
Business

Net sales

Specialty Materials
Business

Net sales

Household Products
Business

Net sales

Operating income

Operating income

Operating income

Operating income

Total

4

Components of Changes in Operating Income

Consolidated Financial Results

Segment Information

Components of Changes
in Operating Income

FY3/25 Forecast
Components of Change in
Operating Income

FY3/25 Forecast

Price revisions more than offset the decline in sales volumes, resulting in a ¥0.65 billion increase in operating income.
Ordinary income increased ¥2.13 billion.

YoY change(Millions of yen)
Non-operating income/expenses+1,346
6,188

4,058

1,337
1,640

FY3/23

Sales

Materials+3,400-1,529

Factory efficiency Fixed cost, etc.

+8

-310

Inventories

Others

-386

-527

2,296
783

FY3/245

FY3/25 Forecast

Consolidated Financial Results

Segment Information

Components of Changes
in Operating Income

FY3/25 Forecast

FY3/25 Forecast
Components of Change in
Operating Income

YoY change(Millions of yen)

FY3/24

FY3/25

YoY change

Net sales

86,51793,000+6,483+7.5%

Operating income

2,296

3,100

+804

+35.0%

Ordinary income

6,188

5,500

-688

-11.1%

Profit attributableto owners of parent

4,590

4,300

-290

-6.3%

6

FY3/25 Forecast
Components of Change in Operating Income

Consolidated Financial Results

Segment Information

Components of Changes
in Operating Income

FY3/25 Forecast
Components of Change in
Operating Income

FY3/25 Forecast

Forecast an increase in operating income despite the outlook for consistently high prices of raw materials andenergy as price revisions and a recovery in sales volumes contribute to earnings.
6,188
Forecast lower ordinary income due to the outlook for a decrease in equity-method income.
YoY change(Millions of yen)
Non-operating income/expenses-1,492

6,188

5,500

3,100
1,337
2,296

FY3/24

Sales

Materials

Factory efficiency

+589

-147

+50

Fixed costs
and other
expenses+115

Inventories

Others

-142

+339

783

FY3/25

7

Business Strategies

Our Vision

Special Material

Use technologies and reliability tooperate businesses like no othersfor progress with our customers
Tokushu Tokai Paper has consistently focused on the growth ofcorporate value as a distinctive corporate group that is guided by thecommitment to technology and trust originating with the company’s
two founders.
The business climate for the paper business is constantly changing.
To continue to grow, the TTP Group must change as well whileaiming to reinforce its position as an organization that is like no other.

Household Products

Industrial Material

Environment RelatedOur Accomplishments

Our Accomplishments

PBR Analysis

Equity Measures

Increasing the PBRSales and earnings have been firm following the Fourth Medium-term Plan.
During the past seven years, ordinary income has increased to a new record high four times.

Financial Summary

Return on equity (ROE)

Cost of equity (CAPM)

FY3/24 Results
8,000■ Ordinary income ■Profit(Millions of yen)

6,000

5,353

5,389

4,130
4,058

3,694
3,202
Updated

2,000

Updated%Approx.

4.6

%

6,188

5,970
5,594 5,733
5,252

4,212

4,000

6.2

4,590
UpdatedUpdated

2,193

Since the beginning of the Fourth Mediumterm Plan, the return on equity (using thecapital asset pricing model) has consistently
been higher than the cost of equity.
Furthermore, the ROE has been increasing
slowly.
Reference

FY3/18

FY3/19FY3/20Fourth Medium-term Plan

FY3/21

FY3/22

FY3/23

Fifth Medium-term Plan

FY3/24
FY3/24

Sixth Mediumterm Plan

10-year avg. 2.1 %to FY3/17

7-year avg. 6.0 %beginning
in FY3/18

10

Our Accomplishments

PBR Analysis

PBR Analysis

Equity Measures

Increasing the PBR

An urgent need to raise the PBR, which has remained below one despite strong sales and earnings.

The effective cost of equity is higher than the CAPM cost of equity. TTP believes that more measures are needed to
improve profitability and disclose information about effective measures involving equity.
Price-book Ratio (PBR) and Book Value per Share (BPS)
Analysis

7,000■Year-end stock price (left/yen) ■Year-end BPS (left/yen)■Year-end PBR (right/times)
1

6,000

FY3/24 Results

Marketrequirement

6.2%

Cost of equity (CAPM)
Approx.

4.6

%

0.8
5,000

0.62
0.6

4,000

6,517 6,062

3,000

TTP believes that investors expect a higher level ofprofitability because the average ROE for manufacturers
in Japan is about 8.4%.

0.4

4,010

2,000

0.2

1,000
0

0
FY3/18

FY3/19FY3/20Fourth Medium-term Plan

FY3/21

FY3/22

FY3/23

Fifth Medium-term Plan

FY3/24

Sixth Mediumterm Plan

TOPICS

There was a secondary offering of 1,798,000 shares ofstock in February 2022. TTP purchased 1,500,000 shares tohold as treasury stock and the remaining approximately
300,000 shares were sold to investors. Although the stock
price declined for a while due to this offering, the offering
is expected to support a higher stock price in the coming
years due to the increase in trading liquidity.

11

Our Accomplishments

Equity Measures

Equity MeasuresPBR Analysis

Increasing the PBRTTP Plans to Announce Plans in FY3/25 Based on Growth Investments and Shareholder Distributions

Shareholder Distributions

Investments for Growth (Portfolio Management)

Payout ratio

Investments and Closures Beginning with the Fourth Medium-term Plan

Dividends per share (yen)

33％

2024-

Takafuji Co., Ltd.

2023-

50

Suruga Service K. K.

FY3/18Fifth Medium-term Plan

Fourth Medium-term Plan

24.7%

28.2%

75

75

FY3/19FY3/2031.6%

Toei Co., Ltd.

2020-

24.0%

Sixth
Mediumterm Plan

100
FY3/21

Purchase of treasury shares
FY3/18 ¥4.4 billion

March 2024

FY3/22 ¥4.0 billion

Closure of the
Gifu MillFY3/23 ¥1.3 billion

28.9%

30.9%

120

100

120

120
(fct.)

FY3/22

FY3/23

FY3/24

FY3/25

Number of outstanding shares
As of March 31, 2018

FY3/21 ¥2.2 billion

More efficient use of specialty paper assets

30.3%

Total ¥12.2 billion

As of May 31, 2024
(tentative)

15,412

13,000thousand shares

thousand shares(-15.6%)

FY3/24 ¥0.3 billion

Activities During the Past Seven Years

Interest-bearing debt
Initial¥57.8 billion

FY3/18¥32.1 billion

Acquisitions

FY3/21

FY3/24¥24.9 billion¥27.0 billion(-22.4%)(+8.4%)

3(Total of about ¥7.4 billion)

Quickly concentrate investments on growing market
sectors while maintaining financial soundness

Pct. of cross-shareholdings
End of FY3/18

End of FY3/24

24.2%

9.1%

Average total shareholder
distribution ratio
7-year avg.
beginning in
FY3/1879 %Continue making timely and flexible decisions
about dividend increases and stock repurchases
based on the dividend policy
12Our Accomplishments

Increasing the PBR

Equity MeasuresPBR Analysis

Increasing the PBR

Clearly explain to investors the TTP Group’s growth story based on the strategy of being an organization like noother due to the utilization of unique strengths in all businesses

Higher profitability by strengthening a business portfolio with two core components: paper and the environment

Future business portfolio
Growth of thePaper BusinessRealign the
product
portfolio

Paper

Create newsatellitebusinesses

Environment

Operating income¥10.0 billion

Shift to a businessportfolio that reflects
customers’ needs in asociety where resources
are recycled and reused

Environment
Related BusinessCurrent business portfolio

Operating income¥2.3 billion

Most earnings
are in the paper
business

Advancement of therecyclingbusiness

Effective
use of TTP
forests

13

Initiatives to become an organization like no otherEnvironment Related Business
During the Fourth Medium-term Plan, the environment related
business became a reportable segment. During the next plan,
Suruga Service K.K., an intermediary waste material processing
company, joined the TTP Group. In addition, whisky distilling
started at the Minami Alps distillery. During the Sixth Mediumterm Plan, the goal is growth of environmental operations into a
new core business alongside the three paper businesses. In the
future, this business is expected to be a major element of thegroup’s profit structure.

Resource Reuse
BusinessResource Reuse Business

Takafuji Co., Ltd.

Objective of Thermal
Recycling

Material Recycling
Progress

Material Recycling at
Toei

Activities of Toei

Recycling Business
Expansion

TTP is using acquisitions for growth in the recycling business sector.
One step was the April 2024 acquisition of Takafuji Co., Ltd., a waste material processing company based inwestern Tokyo.
Outlook for Resource Reuse Business Earnings
RPF (Refuse Paper & Plastic Fuel)

Sixth Medium-term Plan

= Fuel made from waste paper and waste plastics

Further increase output of RPF
Start recycling of materials

Fifth Medium-term Plan

Larger breadth of wastematerial collections
Before the Fourth Medium-term Plan

Suruga Service K. K.
Acquired in 2020
Waste material collection in central
Shizuoka and western Kanagawa
prefectures

Increased RPF output
REX Co., Ltd.
Established in 2002
Produces RPF used at paper mills

0.3 billion

¥

0.6

¥

billion

1.2¥

Toei Co., Ltd./Takafuji Co., Ltd.
Acquired these companies in 2023/2024
These acquisitions expanded operations to
Aichi prefecture and western Tokyo
Plan to use the extensive waste material
reuse technologies of these companies tostart a business for the recycling of materials

Become a major
element of the
TTP Group’s
profit structurebillion* Amounts are simply the sum of each group company
15

Resource Reuse
Business

Takafuji Co., Ltd.

Takafuji Co., Ltd.

Objective of Thermal
Recycling

Material Recycling
Progress

Material Recycling at
Toei

Recycling Business
Expansion

Activities of Toei

Processes about 90,000 tons of waste materials, mainly building materials, received from construction
companies, homebuilders and other companies
Supplies RPF feedstock to REX Co., Ltd. and is expected to produce synergies involving thermal recycling
Distinctive Strengths and Profile

Many customer relationships created during
30 years of operations

Business Flowchart

Waste materials

Takafuji

Customers range from large, publicly owned
companies to small local construction companies

A vital infrastructure in western Tokyo
Signed agreement to cooperate with the City of
Akishima for the removal of waste materials
following natural disasters

Factory expansion in Dec. 2023
Installation of a crusher and packaging machine
doubled the capacity of the main processing facility
Head office:
Factories:
Sales:
Ownership:

3-1-3 Haijima-cho, Akishima-shi, Tokyo
3 locations (Hamura, Akishima,Tachikawa)¥2.7 billion (FY9/22 results)

Construction
companies,
generalcontractors,
homebuilders,
othersCollection/
Transport

Distribution

Scrap metal
Used paper

Scrap material
companies, others

Waste
plastics

REX Co., Ltd.

RubbleUsed textiles
Glass, othermaterials

Reprocessing
companies

Not forreuse

Landfill operators

Receipt/
Sorting

100% owned by Takefuji Holdings(holding company of Takafuji)16

Objective of Thermal Recycling

Resource Reuse
Business

Takafuji Co., Ltd.

Objective of Thermal
Recycling

Material Recycling
Progress

Material Recycling at
Toei

Activities of Toei

Recycling Business
Expansion

Three acquisitions during the past four years have expanded to the east and west areas for the collection ofwaste materials that can be used as a feedstock for making RPF. The establishment of an infrastructure for
producing high-quality RPF has succeeded at giving TTP a competitive advantage in the thermal recycling sector.
Waste material collection spanning Aichi-Shizuoka and western Tokyo■ Areas of expansion

Objectives of Expansion to More AreasTokyo
Takafuji Co., Ltd.

Kanagawa

Suruga Service K. K.

Aichi

ShizuokaInternal environment

External environmentMore RPF output
requires the input
of a larger volume
of waste materials.

Growing demand forenergy from wastematerials is creating
more competition forthe collection of thesematerials.

REX Co., Ltd.
Toei Co., Ltd.
REX Co., Ltd.
Recycling mill was moved
from Kanaya to Makinohara

Increased production
capacity

Reliable sourcesof raw materials
helps increase
production

RPF production
volume(FY3/20 vs FY3/24)

About +

9.2

%

17

Material Recycling Progress

Resource Reuse
Business

Takafuji Co., Ltd.

Objective of Thermal
Recycling

Material Recycling
Progress

Material Recycling at
Toei

Activities of Toei

Recycling Business
Expansion

Building a framework for recycling materials that is centered on Toei.
The goal is to establish a presence like that of no other competitor in the material recycling market in order tocapture orders due to new demand that will emerge in the coming years.
Examples of material recycling possible due to expansion of this business
Home appliances and plastic from appliances

Small home appliances

Disassembly/reuse
as resources

TVs
Plastic fromwashing machines,
refrigerators andother appliances

Raw materials formaking plastic

Mobile phones, etc.

StonesGravestones andother stones

Crushed for reuse inpaving materials andother applications

Recovery of metals
Glass

Colored glass

Sand Wave Gthat usually goes to a landfill (a recycled granular glass sand product)

18

Material Recycling at Toei

Resource Reuse
Business

Takafuji Co., Ltd.

Objective of Thermal
Recycling

Material Recycling
Progress

Material Recycling at
Toei

Activities of Toei

Recycling Business
Expansion

A plastic high-purity sorting line will begin operating early in 2025 at Toei’s Port Dream Factory (transforms
waste plastics into raw materials for reuse) at this company’s Handa Port facility near Nagoya.

Differentiation through new material recycling tailored to customer needs that could not be met in the past

Reasons for expansion to more areas of
Japan
導入の経緯
導入の経緯
Internal environment
Types of plastics that can be processed
are currently limited. Unable toincrease the volume of materials forprocessing by relying only on the usedhome appliance category.

New capabilities due to the new sorting line
Crushing and sorting of plastic
materials, including plastics withmetal and composite materials,
such as automotive parts

External environment

Crushing/pulverizing of a varietyof household plastic products,
such as laundry baskets

Increasing need for the recycling of plastic
products other than home appliances due tothe enactment of Japan’s new plastic
materials recycling law.

Higher accuracy of sorting
based on colors, compositionand other properties ofwaste plastics

19

Activities of Toei

Resource Reuse
Business

Takafuji Co., Ltd.

Objective of Thermal
Recycling

Material Recycling
Progress

Material Recycling at
Toei

Activities of Toei

Recycling Business
Expansion

Started operating Mercari Shops with the town of Higashiura (near Nagoya); the first system in Japan for selling large
household trash items using Mercari shops based on a tie-up with a local government
Received an Aichi Environment Award, which is given to companies that support the reuse of resources and lower theenvironmental impact of various activities
Toei collects and sells large discarded household items

For sale by Higashiura Reuse by Toei
Usually, furniture and other large items discarded by households arecrushed and incinerated or processed in other ways. Toei carefully selects
items that can still be used and sells them at Mercari Shops operated jointlywith the town of Higashiura. Selling these items reduces the volume of trash
sent to landfills. These stores are a reuse program possible only by Toei due
to its reputation for reliability in this region.

Recognition for contributions to creating a society where
resources are reused

From right, Hideaki Omura, governor of Aichi prefecture, Shinji Imazu,president of Toei, Toshikazu Koike, chairman of Environmental
Partnership Organizing Club (chairman of Brother Industries)

The outstanding achievement award the significant contribution ofToei to creating a society where resources are reused through theutilization of advanced recycling technologies that include theprocessing of plastics in used home appliances and the operation ofan urban mining business.

Higashiura Reuse by Toei

20

Recycling Business Expansion

Resource Reuse
Business

Objective of Thermal
Recycling

Takafuji Co., Ltd.

Material Recycling
Progress

Material Recycling at
Toei

Activities of Toei

Recycling Business
Expansion

Continuing to seek many opportunities for growth by using M&A and alliances
Aiming to become a business like no other while enlarging operations to include more types of materials andchemicals

Recycling in the TTP GroupResource Reuse businesses

Paper

Reuse asresources

Plastics

StonesUsed paper
Glass

Home appliances

Grinding mills (pulverizing)
Reuse
technologies

Sorting

Create recycling
technologies thatcompetitors cannot match

Composite materials

Goal

More M&A to cover more categories of materials and chemicals

21

Natural Environment
Business

Natural Environment Business

JUZAN Activities (1)JUZAN Activities (2)The Ikawa Forest is a key component of the TTP Group’s identity.
The goal is to use this Southern Alps, which TTP has been preserving for many years, to make the value of the forest
accessible to the public.

Activity

Activity

Activity

Build partnerships with communities andcompanies for the protection and effective
use of the forest
Use the J-Credit Scheme for the absorptionof CO2 by responsibly managed forests
Production of single malt Japanese whisky

Mt. Arakawa

22

JUZAN Activities (1)Natural Environment
Business

JUZAN Activities (1)JUZAN Activities (2)Agreement with Taisei Corporation (a construction company) concerning use of the Ikawa Forest andparticipation in the Minami Alps Partnership of the city of Shizuoka
Started building a model for a virtuous use-preservation cycle of the Ikawa Forest, including agreementswith Taisei Corporation and the city of Shizuoka
Lodging with a low environmental impact

Planting trees and more deer fences

Studies are under way for the use of Taisei
technologies at the Ikawa Forest lodge forelectricity and other facilities to take thelodge off the grid.

Conduct examinations of areas where difficultaccess has prevented studies in prior years.
Identify priority areas for protection and build
more fences to keep out deer.

Use these activities to build a framework forcooperation with communities andcompanies.

Rediscovering nature

Forest monitoring that uses tourists

Use surveys and research to determine
new and innovative ways to use the Ikawa
Forest to create tourism value, enabling
people to experience a natural forest.

Use photos taken by tourists and other input
from tourists to obtain data about the naturalenvironment. Use this information to determine
distributions of vegetation only in this region
and for forest preservation plans.

23Natural Environment
Business

JUZAN Activities (2)JUZAN Activities (1)JUZAN Activities (2)Part of the Ikawa Forest has been registered for the creation of forest J-Credits.
First sale of whisky in the fall of 2024, the fourth year of distillery operations at the Ikawa Forest.
Started sales of differentiated credits that use value of the Minami Alps natural environment

Plan to start sales in November 2024

Markets

Purchase benefit + Added value

Benefit

1

Added
value

Offsets CO2 emissions

Contribution to protecting the forest
J-Credit income is used for the management of the Ikawa
Forest. Therefore, purchasing credits supports the
Minami Alps Eco Park and locations for coexistence withnature. This reinforces TTP’s appeal as an organizationthat protects nature.

2

Added
value

More opportunities for activities(requires separate contract)
The Ikawa Forest can be used for activities that protect
nature and use nature responsibly. Activities involve
education, one of the SDGs, forest therapy and otherprograms for training TTP Group employees andproviding them with other benefits.

In addition to CO2 offsets, added value
by enjoying nature and in other ways
after purchasing credits

Expect significant demand forforest credits
Credits for a forest where a naturalforest is more than 90% of the entire
applicable area are extremely rare in
Japan.
There is already interest in the credits,mainly at companies located near the
Ikawa Forest. Offsets involving thedistillery are now under consideration.

The fifth new born series

Production as planned
Completion of the second aging
building in July
The fifth new born whisky was launched
for the purpose of increasing interest andexpectations involving longer-aged
whisky. Plan to start selling the firstsingle malt Japanese whisky in November
2024. The price, concept, bottle designand other information is expected to beannounced in about October.
24

Initiatives to become an organization like no other

Paper Related Business
For many years, office-use and printing paper have been core products of
the TTP Group. The increasing use of digital technologies has dramaticallyaltered the structure of the paper industry during the past few decades.
Furthermore, interest in biomass is growing because of the increasingneed to reduce or eliminate the use of plastic. TTP is using a broad array oftechnologies and knowledge acquired from papermaking operations toshift activities to market sectors peripheral to paper where these trends
are expected to create even greater demand.

Specialty Materials BusinessSpecialty Materials BusinessHouseholds Products BusinessIndustrial Materials Business

Create Satellite Businesses (1)Create Satellite Businesses (2)Create Satellite Businesses (3)Using technologies acquired from specialty paper operations for the replacement of products in sectors where
demand is falling due to digital technologies and other reasons with products in growing market categories

Overview of the Product Replacement Process

Shrinking categories due todigitalization and other reasonsCategories expected to continue growing

Fancy paper• Paper for publication andcommercial printing• Japan market

Information-Use Paper

Technologies/Knowledge • Germ-resistant paper
・Bank books
・OCR paper/Postcard paper• Fluorine-free oil-resistantpaper• Paper for packages• Overseas market

26

Household Products BusinessSpecialty Materials BusinessHousehold Products BusinessIndustrial Materials Business

Create Satellite Businesses (1)Create Satellite Businesses (2)Create Satellite Businesses (3)Increasing sales of environmentally responsible products, such as products using lamination, and further
upgrading quality and the power of brands in order to differentiate TTP products from those of competitors

Examples of environmentally responsible products

NatuLami brand laminated products

Towper paper-wrapped towels for consumers

Extra long toilet paper27

Industrial Materials BusinessSpecialty Materials BusinessHousehold Products BusinessIndustrial Materials Business

Create Satellite Businesses (1)Create Satellite Businesses (2)Create Satellite Businesses (3)Industrial-use paper demand is fairly stable in comparison with the demand for other existing paper products.
Aiming to become more competitive by utilizing the low-carbon operations that are a distinctive strength of the
Shimada Mill of Shin Tokai Paper.

CO2 Emissions (tons/ton of paper produced) at the Shimada Mill and Major Actions
Year-to-year change using 2013 as 100 (forecasts for years beginning with 2023)
140%

Completed120%

Boiler no. 12

Under way

5T modifications

13B construction(completion in 2027)
3T efficiency
improvements, others

100%

80%

Net-zero measures

Vs. 2013
60%

40%

-

51％

Vs. 2013

Vs. 2013

68％

-

-

FIT hydroelectric power forinternal use
Kiln gas atomization, others

70％

20%

Net zero

0%2026 2027 2028 2029 2030
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
2030

2050

28

Create Satellite Businesses (1)Specialty Materials BusinessHousehold Products BusinessIndustrial Materials Business

Create Satellite Businesses (1)Create Satellite Businesses (2)Create Satellite Businesses (3)Aiming for technologies that differentiate every TTP Group business

The satellites are business sectors peripheral to the paper businessNew applications and sales growth
Recyclingbusinesses

Reduce/eliminate plastics and cut CO2 emissions

AP
Environmentally
responsible
products

Core business
Environment
RelatedBusiness

WhiskyThree Paper
Businesses

New activities

New ideas that close match customers’ needs

FiblicPackage29Create Satellite Businesses (2)Specialty Materials BusinessHousehold Products BusinessIndustrial Materials Business

Create Satellite Businesses (1)Create Satellite Businesses (2)Create Satellite Businesses (3)Constantly create innovative ideas incorporating TTP technologies and knowledge backed by progress with R&D
and adding new markets
Expertise originatingfrom specialty paper
Double-V cut fabrication method

Dyeing techniques rarely used even in Japan

Easy workability and outstanding water resistanceAcute-angle edge

Fluorescent colors

Wet moldA molded caseA paper tumbler with a lacquer finish

for King Jim Co., Ltd.

for COCOO LLC.

Solid Box®

Music industry

CD/DVD boxes

30Create Satellite Businesses (3)Specialty Materials BusinessHousehold Products BusinessIndustrial Materials Business

Create Satellite Businesses (1)Create Satellite Businesses (2)Create Satellite Businesses (3)Constantly create innovative ideas incorporating TTP technologies and knowledge backed by progress with R&D
and adding new markets
Environmentally responsible products
incorporation wood utilization expertiseUse of resourcesthat are normally discarded

Molded packaging that uses a byproduct of beer production.
For the use of malt flour normally discarded, a project was
conducted by FANCL Corporation, Kirin Holdings Co., Ltd. and
MOLDEA, a TTP Group company that manufactured the
packaging.

FANCL/Kirin Holdings

Molded package for cosmetics products

31Medium/Long-term Strategies of the Tokushu Tokai Paper Group

Philosophy

Unique paper maker with high uniquenessand originality

Long-term goals

Future business portfolio
Growth backed
by bothbusinesses
Growth of thePaper BusinessRealign the
product
portfolio

Create newsatellitebusinesses

Environment
Related BusinessCurrent business portfolio

Environment
RelatedBusiness
Operating income¥10.0 billion

Paper
Business

Advancement of therecyclingbusiness

Value for society
Coexisting with the environment

Effective
use of TTP
forests

Operating income¥2.3 billion

 Contributions for
decarbonization
 Value as source of natural
capital Effective use of resources
 Helping reduce the use of plastic
 Products/services that
accurately meet specific needs

Coexisting with
communities/society

Our Vision

Use technologies and reliability tooperate businesses like no others for
progress with our customers

 Support for cultural activities Safety and health Utilization of a diverse
workforce
 Improve productivity32

* Plans, actions and other statements in this presentation are based on management decisions using information that was available as of the date of this presentation.
As these statements include numerous risk factors and other uncertainties, actual results of operations may differ from the information in this presentation.