Message from the President

Our founding President Shigenari Morita articulated the following corporate motto: Passionate and Dedicated to Our Partnerships.

Business overview

Mr. Morita made heartfelt efforts to achieve conditions conducive to employee satisfaction.

History

In his words: .
Over the more than 70 years since The Pack’s founding, this corporate motto has permeated throughout the organization.

Value creation story
09
11
12
13
15
17

Today, it serves as the credo that drives the work of our numerous employees.

Value creation process overview
Management capital

the Purpose, established in 2022 to promote sustainable management; and the Basic Policy of Sustainable Management

Business modelaccount for the remainder of our four-part corporate philosophy structure.

Products
The Pack’s total solutions
Value provided

Passionate and Dedicated to Our Partnerships

19 Medium-term management plan (FY2023-FY2025)

This Integrated Report seeks to communicate The
Pack Group’s value creation story to a broad range ofstakeholders, including shareholders and investors.
As the Group’s first Integrated Report, it strives to
describe, as succinctly as possible, the essence andimportance of the Group so that readers may reach abetter understanding of the Group. This Reportseeks to strengthen corporate value by enhancing
communication with stakeholders.

Organization covered by this Report
The Pack Corporation and members of its Group ofcompanies
Note that ESG data excludes information on Group
companies.

Period covered by this Report
While this Report addresses FY2023 (January 1 –Sustainability (ESG) initiatives
21
22
23
25
26
27

Basic Policy of Sustainable Management/promotion structure

Published figures
Totals may not match the sum of their parts due torounding.

Guidelines referenced

Mission to bolster social prosperity and creating satisfaction
through packaging

Materiality KPIs
Investment in growth drivers toward achievement of financial and nonfinancial KPIs
ESG initiatives

27
35
40

We value and nurture people.
We seek to accommodate society’s every change.
 We fulfill our social responsibilities by promoting initiatives
related to the global environment and other issues.
 As a company offering total solutions related to packaging,
we seek to contribute to societal development and to
thriving societies.



Corporate Philosophy

E Environment
S Society
G Governance

Basic Policyof Sustainable Management

48 ESG dataContributing to a sustainable society
Delivering value from The Pack Group



P. 21

Group data
49 Financial highlights
51 Company overview, share information

Materiality(Important Issues)

to the following frameworks and guidelines:
Reporting Framework

Purposeof our existenceMateriality issue identification process/materiality list

This Integrated Report was prepared with reference
 IFRS Foundation, International Integrated

Corporate
motto

External environment (risks and opportunities)

December 31, 2023), it also includes some
information from before and after this period.

About The Pack

Based on this corporate motto, the Corporate Philosophy, which starts with the words      ;Strategy

Editorial Policy

Value creation story

Philosophy Structure of The Pack Group

Strategy

02
03
05
07

Sustainability (ESG)
initiatives

2024

Philosophy Structure of The Pack Group

About The Pack

Group data

The Pack Group
Integrated Report 2024

P. 23

Disclosure structure

Resolving environmental issues through businessactivities
 We value and nurture people.
 Building and deepening relationships of trustwith business partners and customers
 Contributing to the development andprosperity of society
 Reinforcing management foundations

 Ministry of Economy, Trade and Industry, Guidance

for Collaborative Value Creation

Nonfinancial information

Financial information

 Final Report of the Task Force on Climate-Related

Integrated Report

Financial Disclosures (TCFD)

Forward-looking statements

 Business Results

 Sustainability Report

Forward-looking statements in this Report, including Briefing Materials on Business Results

 Corporate Governance Code Initiatives

 Shareholder’s Newsletters

Medium-Term Management Plan
P. 19

Achievement targets for December 2025
Growth strategies
 Human capital strategy
 Financial strategiesforecasts of business performance, are based on
information available to the Company at the time ofAnnual Securities Report

its preparation and on assumptions deemed
reasonable. They may differ for various reasons fromThe Pack Corporate Website

actual results.

01

The Pack Group Integrated Report 2024

The Pack Group Integrated Report 2024

02About The Packby expanding and by making improvements in efficiency and otherproviding environments and solutions suited to each of the food,aspects of our production structure. At the same time, we will contin-

through direct dialogue and planning and proposing ideal packaging

e-commerce, mail order, logistics, and retail markets. In 2023, we

ue to develop the human resources needed to make the most of thisToday, amid rising global demands for management with a focus on

solutions for the customer in question. These proposals account for ainvested more than 1.5 billion yen to enhance production capacity for

manufacturing capital. We will promote development proposals of

the environment, society, and governance (ESG), sustained andwide range of considerations. For example, for customers promoting

paper cartons and paper bags. We also expanded our lineup of materi-eco-friendly products, enhance our supply chains and sales channels,

sustainable corporate growth requires the provision not just ofenvironmental initiatives, we consider solutions to meet their needs

als for the e-commerce market. We are currently capturing growing

and consider overseas expansion.

short-term profits, but social value from a long-term perspective. Since

and budget, including switching to paper packaging and designs thatdemand in each market. We plan to add to these results by investing

We recognize the need to strengthen governance still further to

my appointment as President and CEO in March 2022, with the goal ofhelp conserve resources, and switching to easily recyclable single-ma-

about 1.6 billion yen to enhance production capacity for paper cartons

improve the Group’s reputation and its capacity to achieve sustained

sustainable management in mind, I have worked to achieve progressterial packages and eco-friendly materials. We also offer Forest

and about 2 billion yen for paper bags in 2024 and 2025.

growth. We will aim to raise corporate value still further while incorpo-

on internal systems and to improve and promote our corporate

Products. In addition to plans and proposals for packages and packag-

Under our human capital strategy, to inspire the best from thephilosophy structure. We hope this year’s Integrated Report—our firsting, we strive to meet related needs and concerns where possible. We

employees who support our strategies, we are securing and develop-

ever—will provide readers with a better understanding of The Pack

offer support for customer product planning processes and processes

ing diverse human resources and improving working environments.

As we strive to achieve our mission—to bolster social prosperity

Group and its future potential and deepen understanding among

related to formulating sales strategies, including in-store displays. We

Initiatives in 2023 included securing human resources through meansand creating satisfaction through packaging—we will continue toshareholders, investors, and other stakeholders concerning the

propose total solutions that combine packages with packing machin-centered on midcareer hiring, digital transformation training topursue our policy of proactive disclosure, thoroughly addressing eachGroup’s overall business activities and its efforts to create value.

ery to save labor and resources for those at work on the front lines.

strengthen skills and knowledge throughout the organization, efforts

materiality topic. We will demonstrate our corporate value by building

History of the Pack Corporation

to sales.

Corporate Auditors.

to promote the roles of women within the company, and efforts totrust through ongoing dialogue with shareholders and investors andcorrugated apparel boxes. Later, we expanded our range of products

personnel who are highly knowledgeable about packages and theencourage male employees to take childcare leave. We undertook ourby promoting sustainable management. We are grateful for yourand services to meet customer needs, growing to become a compre-

technological capabilities of our product planning and production

first employee engagement survey at the end of the year. Based on thecontinuing support of The Pack Group.

hensive packaging manufacturer. In recent years, we have establishedsections. In the planning and proposal process, sales sections work

survey findings, we plan to improve the working environment stilla business model that strives to deliver packages and packaging

with support from the product development section, which has

further in 2024.

solutions to our customers.

roughly 75 staff members, including graphic designers, industrial

In addition to capital investments to support the growth strategy

Our business results have grown steadily since our founding. We

designers, and planners. In the manufacturing process, production

described above, our financial strategy targets a total payout ratio of

remained profitable even amid the challenges of the economic

sections seek to improve their skills daily to refine the capabilities

50% through various shareholder returns initiatives, including efforts

downturn that resulted from the COVID-19 pandemic from early 2020

needed to produce high quality packages made precisely to design.

to boost dividend payout ratios and treasury share acquisitions.

Our quest to identify important materiality issues has clearly

These three key strategies will help us achieve our materiality

This was despite a 20% decline in sales in FY2020, the year mostshown that our employees are the key to our businesses and represent

goals as they take hold and become familiar ideas, along with sustain-

critically affected by the pandemic. In FY2023, we recorded record

The Pack’s management capital. We will continue to invest steadily inability information, among all our employees. We aim to move forward

highs in both sales and profits. The Pack may not be a household

human capital to demonstrate our strengths and continue to grow.

by creating long-term value by first achieving the goals of thisthree-year Medium-Term Management Plan.

that our management foundations are sufficiently strong to withstandfluctuations in the external environment.

Progress on the Medium-Term Management Plan
Targeting a total payout ratio of 50%, our highest ever, after
overcoming the challenges of the COVID-19 pandemic

The Pack’s strengths

Message to stakeholders
Japan’s economy is currently in a recovery trend, as demonstrated by

is “Evolution: -- Start of purpose-based management and Sustainable

growing demand for food service and accommodations, recovery in

Today, we handle a wide range of products, including paper bags,

Management.” At the time we announced the plan, we set the targets

inbound demand, and rising wages. Nevertheless, factors continue topaper cartons, corrugated boxes, and film packaging. Leveraging ourfor FY2025 of consolidated net sales of 107 billion yen, operating

cloud the future outlook, including long-term inflation spurred byextensive product lineup and the expertise gained from more than 70

income of 7 billion yen in FY2025, ROE of 8% or more, and ROIC of 8%

higher energy prices and exchange rate fluctuations. We will deliver

years as a manufacturer selling directly to customers, we haveor more. Based on the results for FY2023, we have revised our operat-value to stakeholders by addressing our 12 materiality topics and fivedeveloped a structure capable of providing comprehensive produc-

ing income upward by 1.3 billion yen to 8.3 billion yen.

themes while continuing to adapt to the external environment.

tion of made-to-order products, from planning to final delivery. One of

The Medium-Term Management Plan identifies three key

The recent rebuilding of the Osaka and Nara plants marks a major

our greatest strengths is our planning- and proposal-based approach

strategies: the growth strategy, the human capital strategy, and theturning point for The Pack. We will also seek to achieve further growth

The Pack Group Integrated Report 2024

Hideaki Yamashita
President and CEO
The Pack Corporation

Providing value while enhancing governance

The slogan of the Medium-Term Management Plan launched in 2023

Reasons for investing in human capitalGroup data

Essential to sales based on planning and proposals are both sales

name, but we are growing steadily. I believe this growth demonstrates

03

rating the opinions and perspectives of our External Directors and

The Pack Corporation was founded in 1952 as a manufacturer ofand the adoption of fees on shopping bags in July of the same year.

Value creation story

financial strategy. Efforts under the growth strategy will focus on

Our sales are based on ascertaining customer needs and issues

Background of this Integrated Report

Strategy

A mission to bolster social prosperity and creating satisfaction through packaging

Sustainability (ESG)
initiatives

Top Message
Message from the President

The Pack Group Integrated Report 202404About The Pack

Business overview

Value creation story

A provider of total packaging solutions
The Pack Group is a comprehensive packaging manufacturer engaged in handling a diverse range of packaging materials ranging from

Net sales and operating income by segment

Net sales

97,714Paper Products

71.0%

million yen

69,3996,858

Net sales

60,353Operating income
Unit: million yen

51,386 55,498

62,932

million yen
million yen

5,265
2019

3,124

3,958

2020

2021

5,333
2022

69,399

6,858

2023

Operating income

7,743

29,264

million yen

Paper bags

30.3%

*Including adjustments

29,653 million yen
3,889 million yen

21,471 22,032
3,239
2019

Paper
cartons

25.6%

Net salesby segment
Corrugatedboxes■ Paper Products■ Film Packaging■ Other Businesses

71.0%
14.1%
14.9%

Printing

12.7%

2.4%

25,000 million yen
2,221 million yen

12,419 million yen
607 million yen

2,325 million yen
140 million yen

Film Packaging

14.1%

05

The Pack Group Integrated Report 2024

2021

3,019
2022

22,283

1,237

864

1,079

1,574

2019

2020

2021

2022

10,514 10,625
557

451

2019

2020

2,213
232

2,051

29,6533,889

2023
25,0002023

Customers

11,850 12,210 12,419

Approx.
companies

711

678

607

2021

2022

2023

2,186

2,325

2,131

93

75

61

2020

2021

2022

1,042
million yen

14,000Composition of sales by industry■ Apparel■ Supermarkets, drugstores

2023

11,184 11,988

511

397

583

2020

2021

2022

13,798856
2023■ Department stores■ Life care
■ Home appliances, residential■ e-Commerce (mail order)*■ Sundries■ Convenience stores

Other Businesses

14.9%

14,516
1,267

15,483

13,574 13,008 14,138 14,516

million yen
million yen

2019■ Automotive■ Other

1,492
748

882

1,059

2020

2021

2022

1,267
2023

Our products include boxes forJapanese- and Western-style snacks,
shopping bags, gift wrapping, and film
packaging for individual items. We havean extensive track record in takeout
packages for foods purchased directlyfrom convenience stores andrestaurants.

Apparel, sundries
We provide packaging to help increase
the customer brand value, including
shopping bags, wrapping materials, andsales promotion novelties for
department stores and apparel andsundry brands.

Living supplies■ Food products

140

Food products market(FY2023)■ Pharmaceuticals, cosmetics

13,484

million yen

The Pack Group handles a highly diverse
range of packages: from apparel
shopping bags to packages for food,beverages, daily necessities, andsanitary products; paper bags forcorporate and school use; andpackaging materials for home deliveries.
A key Group strength is its capacity topropose optimal packages andpackaging solutions for a broad rangeof businesses and industries, not justsingle markets.

2,221

19,6662019*Adjustments of (-1,239 million yen) to segment
income include 12 million yen in cancellation ofintersegment transactions not allocated to individual
reporting segments and companywide expenses of(-1,251 million yen). Companywide expenses consist
mainly of expenses related to the administrative
sections of the parent company.

2020

18,361 17,237 19,497

2019

13,798
856

1,713

2,092

26,252The Pack’s diverse customer base

Sustainability (ESG)
initiatives

Net sales/operating income

Group data

(FY2023)

Strategy

paper bags, paper cartons, and corrugated boxes to film packaging and wrapping materials made using other materials.

28.1%
16.6%
5.6%
5.0%
4.9%
3.8%
3.0%
2.9%
2.0%
1.2%
0.3%
26.6%

* The share of the e-commerce (mail order) industry
consists of online malls. Sales for e-commerce bycustomers on their own websites are recorded under
the customer’s industry.

We have a track record in producing
packages for a wide range of daily use
items, including external packages for
sanitary products, packaging materials
for home appliances, and productpackages for cosmetics andpharmaceuticals.

e-Commerce (mail order) market
We’re quickly adding to our track recordin the e-commerce market based on an
extensive lineup of shipping materials
used for mail-order items, including
paper and plastic home delivery bags
and corrugated delivery cartons.

The Pack Group Integrated Report 2024

06About The Pack

History

The Pack Group has developed numerous packaging and related services by focusing on customer needs while adapting to thechanging times. The Group’s progress is based on ceaseless product development efforts. Our history is truly one of developing

Value creation story

products that meet customer needs.
Industry needs
Environment, quality

Shifted to mass
production withthe adoptionof machineryto attachhandles
automatically.

First developmentof eco-friendly
packagesFirst sales ofcartons and bagswith beautifully
decorated
printing
Began planningand proposal ofpromotional items
in addition
to packages.

Entered the market
for sanitary productpackages

Art bagEnhanceddevelopment of
eco-friendly
packages

Paper bag with top flap

Enhanced
product lineup
for e-commercemarketFY2023 net sales

97,714

million yen*Figures are nonconsolidated
through 1990 and consolidated
thereafter.

ecoKARA® brand of packages
made using recycled waste

Reed paper

Apparel box

Gusset-free delivery bag

Outer bag for diapers

Reinforced corrugated box for home appliances

Corrugated pallet

Streamlining
customers’
total costs

Patterning ofpresentation boxes
for department storesand large retailers
for greater
efficiency

Paper film packaging

Full-scale entry
into the foodproducts market

Cushioned envelopes

Group data

CalendarPaper primary food product container

PAS system development

The Pack Forest®
Environment Fund establishedNIS system development Demand for resource and energy conservation in response to the oil crisis
 Specialized stores turning to chain stores and large stores
Period of rapid economic growth

Automatic packing system for paper delivery bags

 Focus on excessive packaging and waste issues

 Labor shortages
 Sustainable Development
Goals adopted

 Collapse of Lehman Brothers

Growth and collapse of the economic bubble

 The COVID-19 pandemic Growth in food takeout anddelivery demand

1950

1960

1970

1980

1990

2000

2010

2020

1952
Shigenari Morita founds Nippon Case Corporationin Osaka, Osaka Prefecture, and launches sales of
paper cartons and apparel boxes.
1953
Sales expand nationwide, driven primarily by
Yoshin color apparel boxes
1955
Hanazono Plant opens in Higashiosaka, Osaka
Prefecture. Integrated in-house production
begins for products ranging from corrugatedboxes to apparel boxes.
1957
Production of paper shopping bags begins.
1959
Konoike Plant (now the Osaka Plant) opens in
Higashiosaka; production facilities expanded;transformation to comprehensive packaging
manufacturer.

1961
Tokyo Branch (now the Tokyo Head
Office) opens in Chiyoda-ku, Tokyo.
1969
Nara Plant opens in Yamatokoriyama as aplant specializing in corrugated boxes.
Urawa Plant, the first plant in the Kanto
region, opens in Urawa, Saitama
Prefecture, to serve the Tokyo market.

1971
Computer system introduced to begin
the transition to digital management ofcustomer and product information
1974
Mass production system for paper bags
established with the adoption of roll-fed
fully automatic paper bag machines at
Osaka Plant
1979
Kanto Plant (soon renamed the Saitama
Plant, now the Tokyo Plant) opens in
Sakado, Saitama Prefecture to serve theeastern Japan market.

1981
Packaging Museum (now the Package
Laboratory Osaka) opens at Konoike
Plant (now the Osaka Plant).
1983
Company renamed The Pack
Corporation
1984
PAS system developed
1987
The Pack America Corp. (now aconsolidated subsidiary) established in
the United States

1991
Ibaraki Plant opens to produce plasticbags in Hitachi, Ibaraki Prefecture.
Shares listed on second section of the
Osaka Securities Exchange
1998
Osaka Plant No.1 Building completed,
new Packaging Materials Center (nowthe Package Laboratory Osaka) opens.
1999
Headquarters and Ibaraki Plant earn ISO
14001 certification.

2001
Osaka, Saitama (now Tokyo), and Ibaraki
plants earn ISO 9001 (quality
management) certification.
2003
Shares listed on first sections of Tokyo
Stock Exchange and Osaka Securities
Exchange
Keihin Tokushu Printing Corp. established2006
The Pack (Shanghai) Corporation
established in Shanghai, China
2007
Nikko Print Corporation made asubsidiary
The Pack (Changshu) Co., Ltd. establishedin Changshu, China
Osaka and Saitama (now Tokyo) plants
earn FSC® CoC certification (FSC®
C020517).
2009
Pack Takeyama Co., Ltd. established

2011
Tokyo Plant opens in Hidaka, Saitama
Prefecture.
2014
Nishinihon Printing Co., Ltd. made asubsidiary
2018
Kannaru Printing Co., Ltd. made asubsidiary
Related sections of Tokyo and Osaka
plants earn FSSC 22000 (food safety)
certification.

2021
Related sections of all plants in Japanearn FSC® CoC certification.
2022
Listing transferred to the Prime Marketof the Tokyo Stock Exchange2023
New headquarters building completed
in Osaka

Founding and rapid growth
powered by postwar economic
recovery07

Sustainability

The Pack Group Integrated Report 2024

Opening branches nationwide
to expand sales channel

Manufacturing facilities expand
with emergence as a pioneering
figure in the bag industry.

StrategyStandardization, stable supply

Sustainability (ESG)
initiatives

Attractiveness, durability

Second start under the newcompany name, The Pack
Corporation

Toward an organizational
culture and system appropriate
for a listed firm

Becoming an environmental,
quality, and cost leader

Enhancing Group power toachieve medium-term targets

Promoting sustainable
management

The Pack Group Integrated Report 2024

08About The Pack

Value creation process overview

The Pack Group has established a purpose and basic policy for realizing sustainable management and incorporated this purpose andpolicy into its corporate philosophy structure. Its mission is to bolster social prosperity and creating satisfaction through packaging by

Strategy

Products, services

Financial capital

Medium-Term Management Plan Stable financial foundation andinvestment in promoting growth ROE: 8.3%
 ROIC: 7.6%

 Highly specialized and experienced
human resources Employees (consolidated): 1,183
 Employees completing digitaltransformation training: 700

Business model The Packaging Laboratory serves as acommunication and R&D center Approx. 100,000 collected casestudies on packaging
 60 patents
 45 design rights

2

Product
development

1

Social and relationshipcapitalPlanning and proposing
packaging solutions

Manufacturing capital 10 plants in Japan and overseas
 Alliances with subcontractor plants
 15 logistics facilities across Japan

Shareholders and investors
Maintaining stable finances and dividends(payout ratios)

Employees

Suppliers

3

Procurement,
production
Robust production
structure

4

Quality control

Delivering total solutions
from planning throughproduction and logistics
as a group of
packaging professionals

5

Eco-friendly products

Shipping, delivery
Nationwide
logistics network
in Japan

Basic policies for sustainable management
and materiality topics
P. 21, 23E

Resolving environmental issues
through business activities

We value and nurture people.

Philosophy Structure

P. 22

Cocreating brand value

Providing functional and sensory value
through packages

Building and deepening relationships oftrust with business partners and customersof The Pack Group

Global environment
Protecting the environment through business activities

P. 40

S

Customers

Consumers

P. 15

Corporate governance

Mission to bolster
social prosperity andcreating satisfaction
through packaging

Stable supply ofhigh quality products

Total solutions

 Effective use of timber (paper pulp),
water, and petroleum (plastics)
 Nine forest conservation activities

Realizing our purpose

Realizing and maintaining structures
for partnership, coexistence,and shared prosperity

Natural capital

The Pack Group Integrated Report 2024

Paper bags
Paper cartons
Corrugated boxes
Film packaging
Promotional items

P. 17

P. 12

A group of packaging
professionals

Planning
and proposal

 Customer base across various
industries (approx. 14,000 companies)

09

Value provided to stakeholders

Maximizing employee engagement

Intellectual capital

External environment

P. 13

P. 19

Realizing three key strategies
Evolution – Start purpose-based management
and Sustainable Management

Human capital

Outcomes

Strategy

P. 11

Outputs

Sustainability (ESG)
initiatives

Management capitalBusiness activities

Group data

InputsValue creation story

adapting to external circumstances and delivering products, services, and value to stakeholders through its business activities.

Contributing to the development
and prosperity of society

G

Reinforcing managementfoundations

P. 02

Accelerating ESG and SDG initiatives, growing international and domestic economic uncertainty, difficulties securing human resources, accelerating digitalization, shift toward carbon neutrality, need to enhance governance, etc.

The Pack Group Integrated Report 2024

10

We create new management capital based on the outputs and outcomes of incorporating (investing in) six types of management

The Pack Group’s strengths include planning and proposal capabilities driven by specific customer needs and product development

capital into our business model. The Pack Group’s key management capital consists of its solid financial foundations, creative humancapabilities that track market trends. We deliver total solutions ranging from planning through production and logistics, leveraging ourresources and knowhow, extensive customer base, structures that facilitate joint efforts with manufacturing subcontractors, and forest

advanced technologies and extensive knowhow as a group of packaging professionals.

resources and related conservation activities.

FY2023 ROE

8.3 %

7.6 %

FY2023 ROIC

Highly specialized and experienced human resources

Human capital

We employ tiered training programs and evaluation and support systems to enable each individual to demonstrate his or her
abilities to the utmost. Our sales sections with wide-ranging package expertise and creative sections handling product design,
manufacturing design, and planning propose optimal products for customers. Our manufacturing, quality control, andprocurement sections support provision of a diverse range of high quality products while building on their own skills from day
to day.
Employees as of end of FY2023(consolidated)Intellectual capital

1,183

Our Package Laboratories in Tokyo, Osaka and Fukuoka collect and exhibit materials on more than 100,000 packages in total.
Their individual sections cooperate in R&D on state-of-the-art packages. They also are developing proposal databases to share
Groupwide in leveraging the latest information on packages to support sales activities.

100,000

The Pack Group Integrated Report 2024

Design rights held
as of end of FY2023

45

14,000Alliances with domestic and overseas subcontractor plants and a network oflogistics facilities across JapanWe maintain a manufacturing infrastructure capable of meeting diverse customer needs through our 10 plants in Japan andoverseas and alliances with subcontractor plants. We also employ risk management to enable stable supply of products throughreadiness for potential disasters and accidents. Our nationwide network of logistics facilities, including four logistics centers on
the sites of four domestic plants, enables efficient delivery.

10

Logistics facilities in Japanas of end of FY2023

15

Effective use of natural resources and forest conservation activities
In light of the fact that the Group’s businesses are based on natural resources such as timber (paper pulp), water, and petroleum(plastics), we strive to lessen our environmental impact through means including effective use of resources, controlling waste,
and promoting recycling. We also have carried out continuous forest conservation activities since 2001 and contribute tocyclical use of wood pulp.
Forest conservation activities
in FY2023

11

60

The Group deals with about 14,000 companies who form its extensive customer base. To meet various customer needs, we
cooperate with numerous suppliers in Japan and worldwide in addition to our own plants, to deliver a wide range of packages
from apparel shopping bags through packages and packaging solutions services for food and sanitary products, delivery bags,
and promotional materials. We also implement various CSR activities in cooperation with local governments, communities, andnonprofits.

Plants in Japan and overseas (including Group plants)
as of end of FY2023

Natural capital

Patents held
as of end of FY2023

Planning and proposal
Sales

Sales planning

Package Laboratories

2

Product development

Graphic design

Manufacturing design Materials development

Planning and proposing packaging solutions
for customers

A group of packaging professionals

 Responding swiftly to packaging inquiries through a nationwide
network of business sites

 A total of some 75 graphic designers, industrial designers, andplanners on staff nationwide

 Total packaging solutions provided by knowledgeable, experienced
sales personnel A group of professional package developers, highly familiar withtrends across a wide range of industries and businesses, to deliver
high quality manufacturing

 Package Laboratories that effectively function as communication
centers and R&D facilities Plans and proposals developed by staff highly familiar with products
and with packaging trends to help customers identify optimal
packaging solutions

 R&D on new materials to meet ever-changing needs, including
demand for eco-friendly materials

A customer base that extends across various industries

Transaction counterparties
in FY2023
Approx.

Manufacturing
capital700

The Package Laboratories serving as a communication and R&D center,and an extensive database of proposals

Collected case studies
on packaging
Approx.
as of end of FY2023

Social andrelationship capital

Employees completing
digital transformation training:1

Sustainability (ESG)
initiatives

The Group boasts the leading market share in Japan in paper shopping bags and has demonstrated growth mainly in areas likethe manufacture and sale of paper products and film packaging. We strive to pay stable dividends while enhancing corporate
growth through expanding facilities, primarily facilities that produce paper cartons and paper bags, and by increasing both ROE
and ROIC.

Strategy

Solid financial foundations and investments to promote growthGroup data

Financial capital

About The Pack

Business model

Value creation story

Management capital

9

Trees planted
in FY2023

828

3

Procurement,
production

Procurement

Production
management

Production
technology

A robust production structure
based on joint efforts amongour 10 plants in Japan andoverseas and with
subcontractor plants
 Our network of plants in Japan andoverseas and subcontractor plants
employs risk management to prepare
for potential disasters and accidents.
 Our production facilities can meetdelivery times and cut logistics costs.
 We meet diverse needs based on joint
efforts and sharing technologies andknowhow among plants.

4

Quality control

Quality assurance / quality control

5

Shipping,
delivery

Logistics

Sales and services

Stable supplyof high quality products

Nationwide logistics network
in Japan Maintaining and improving high quality
levels through production processcontrols based on product standards
and activities to check and improve thequality of finished products Realizing efficient delivery throughintegrated management ranging frommanufacturing through shipping at
logistics facilities located on the sites offour plants in Japan Certified under ISO 9001 (quality
management) and FSSC 22000 (foodsafety), our operations meetinternational standards. We also deliver
the high quality customers expected ofproducts made in Japan.

 Enabling efficient delivery nationwide
based on a network of 15 logistics
facilities across Japan Enabling optimization of inventory anddelivery timing through coordination
with sales and service sections andmanufacturing and logistics sections

The Pack Group Integrated Report 2024

12About The Pack

Products

The Pack Group’s extensive product lineup includes a wide range of packaging products—from paper bags to paper cartons,

Value creation story

corrugated boxes, film packaging, and wrapping materials. This lineup is supported by a network of manufacturing sites across Japan.

Manufacturing sites and product lineup
Paper bags

Manufacturing sites

Japan: 9 plants

Overseas: 1 plant Shopping bags
 Delivery bags
 Paper bags for food wrapping Wrapping bags

StrategyOverseas: 3 companies

Paper cartons Primary food paper containers
 Product packages
 Gift boxes
Kannaru Printing Co., Ltd.

Osaka Plant

Group company(Paper cartons)*Compatible with pharmaceutical products(Paper bags, paper cartons, film packaging)*FSSC 22000 (food safety) certified (related sections)

The Pack can propose andproduce eco-friendly
products in each category.

Nikko Print Corporation
Group company(Offset printing)*Inside Osaka Plant

Corrugated boxes
Ibaraki Plant
Ibaraki Plant(Film packaging)

Tokyo Plant

Nishinihon Printing Co., Ltd.
Group company(Paper bags, wrapping paper)

Pack TakeyamaCo., Ltd.

Keihin Tokushu Printing Corp.

Kannaru Printing Co., Ltd.
Osaka Plant, Nikko Print Corporation
Nishinihon Printing
Co., Ltd.

Tokyo Plant

Nara Plant(Paper bags, paper cartons)*FSSC 22000 (food safety) certified(related sections)

Overseas

Eco-friendly
products

Keihin Tokushu Printing Corp.

Pack Takeyama Co., Ltd.

Group company(Water-based gravure printing,
UV offset rotary printing)Group company(Paper bags)*FSSC 22000 (food safety) certified(related sections) Corrugated shipping boxes
 Large corrugated boxes Decorative corrugatedboxes
 Reinforced corrugatedboxes
 Cushioning materials

 ecoKARA®
 CC-PACK®
 Molded pulp
 Craft film packaging

Sustainability (ESG)
initiatives

Japan: 5 companies

Group data

Group companies

Film packaging
 Sanitary product packages
 Takeout bags
 Film packaging

Promotional materials
 Reusable shopping bags
 Gift wrapping bags
 Wrapping paper, ribbons, stickers
 Garment bags

13

The Pack Group Integrated Report 2024

The Pack (Changshu) Co., Ltd.

Nara Plant

Group company(Paper bags)(Corrugated boxes)

The Pack Group Integrated Report 2024

14About The Pack

The Pack’s total solutions

addition to approaches based on the packages themselves in aspects such as materials, processing methods, and structural andgraphic design, we have established an extensive track record and expertise by enhancing solutions involving how the packages are

Value creation story

Solutions for the
package production phase

The Pack Group has worked diligently to offer solutions to various package-related challenges identified by talking with customers. In

used. This includes filling and wrapping lines. These pages introduce some of the solutions we offer as a provider of total packaging
We propose materials and processes that deliver
the features required for packages based on theircontents, uses, and other factors.

solutions.

Choosing materials
and processes

Solutions in the
package use phase Proposing oil-resistant paper and coatings for cartons used todirectly hold greasy food products
 Proposing craft film packaging as eco-friendly food wrap

 Proposing packages with one-step assemblyMore efficientwork Proposing tools to simplify box assembly Proposing delivery of pre-assembled boxes (assembling

Strategy

Totalpackaging solutions

that call for a premium look

Choosing optimal
production sites
and methods

Consisting of The Pack plants and subcontractors
in Japan and overseas, our supply chain network
proposes optimal production sites and methods
based on production lot sizes, specifications, andother factors.

boxes on behalf of customers)

Box assembly andproduct sorting
services

Choosing materials
and processes

Choosing optimal
production sites
and methods

Cost savings

Structural design

Graphic design

Streamlining
packing lines

Box assembly andproduct sorting
services

Structural design

Solutions in the
package use phase

Presentation box assembly
machinery

Assembling presentation boxes on
automated boxing machines

We propose more efficient packaging lines, including
packages and machinery, to meet demands for work
efficiency and labor savings at packing and logistics
sites.
We coordinate optimal packing lines to account forcustomer floor layouts, work flows, and other factors.

Solutions for the
package production phase

Streamlining
packing lines

PackageLaboratories

Graphic design

We propose
comprehensive structuraldesigns to meet various
needs, including the needfor visual appeal andconvenience, as well as
product protection andother functional needs.

Group data

We can handle labor-intensive work from box
assembly to filling on behalf of our customers.
By offering one-stop solutions from package
production through product filling, we provide
solutions for complex customer requirements forinventory and delivery management.

More efficientwork

Sustainability (ESG)
initiatives

We offer a wealth of package ideas to make work
more efficient, improve customer productivity,
and reduce stress for package handling and use.

 Proposing special paper and surface treatments for packages

Our graphic designers help maximize customer
brand value based on their extensive knowledge
and experience with wide-ranging customers.
 Package design

We propose packaging measures to control
costs in response to the rising cost of raw
materials, logistics, and labor.
 Proposing designs and materials to

Sealing corrugated cases
using automated sealers Proposing designs that save delivery
costs by considering thetransportation fee structure, such as
by reducing sizes and modifying
shapes of delivery materials

Cost savings

 Support for product planning and branding

Package Laboratories(Tokyo, Osaka, Fukuoka)

control package costs

Sealing corrugated cases

 Production of in-store fixtures and displays

Thin box for
mailbox use

Package Laboratories gather materials on
various packages from around the world andserves as a package research andcommunication center.

 Proposing packages that allow for
more efficient assembly and help
control packing costs

15

The Pack Group Integrated Report 2024

*Conceptual diagram

The Pack Group Integrated Report 2024

16About The Pack

Value provided

The Pack Group makes decisions on dividends that account for maintenance of stable dividends and sufficientinternal reserves. Internal reserves are intended to strengthen the financial constitution and meet funding
demand for production facilities, R&D, and other needs. We believe they contribute to the stability and growthof shareholder dividends through future profits.

Maximizing employee engagement (realizing rewarding work and career planning)

Employees

Global environment

nt a lvalue Econom
ic

Consumers

Realizing and maintaining structures for partnership, coexistence, and shared prosperity

Suppliers
va

e
lu

En
vi r

me
on

Shareholders
and investors

Value provided
by The Pack GroupTo broaden opportunities for diverse human resources to thrive, in addition to promoting improvements inworking environments, forms, and systems, we seek to ensure appropriate assignments based on the effective
use of our talent management system and other programs. We encourage individual and corporate growthand vitality through training and other opportunities for skills improvement and reskilling.

Announced in July 2022, The Pack Group’s declaration of partnership building seeks to enhance coexistence,shared prosperity, and partnership throughout the supply chain. In addition to raising awareness of thecontent of the declaration both inside and outside the organization, we will also strive to increase value
throughout the supply chain by smoothly putting it into practice.

Cocreating brand value

Employees
Customers

As a group of packaging professionals, we propose optimal packages to customers. We propose solutions
based on ascertaining customer needs and issues regarding not only the actual packages but also related
aspects. Furthermore, we support customer environmental initiatives by offering eco-friendly products andwe participate in product planning and sales methods, to cocreate brand value with customers.

Strategy

Shareholders
and investors

Sustainability (ESG)
initiatives

Maintaining stable finances and dividends (payout ratios)

Group data

Mission to bolster social prosperity andcreating satisfaction through packaging

Value creation story

Realizing our purpose

S o cial v alu e

Providing functional and sensory value through packages

Customers

Suppliers
Consumers

The Pack Group develops products and services to meet ever-changing needs, based on planning andproposals reflecting the roles and values that consumers demand of packages. We supply packages that
reduce consumer stress, such as shopping bags that make it easy to carry purchases and paper cartons andcorrugated boxes that are easy to open and dispose of. We also add originality in design, materials, and forms,
to propose packages that make products and brands more valuable. This creates sensory value and increases
consumer satisfaction.

Protecting the environment through business activities
The Pack Group recognizes the importance of building relationships based on trust with a diverse rangeof stakeholders. We understand the perspectives of individual stakeholders and propose environmental,social, and economic value based on carefully considered partnership roles. All members of theorganization share the commitment to contributing to society through packages and packaging.

17

The Pack Group Integrated Report 2024

Globalenvironment

Based on our environmental philosophy—We will work to protect our irreplaceable environment and broadly
contribute to society out of our deep respect for people and nature as well to inspire future generations—wehave sought to reduce the environmental impact of production activities. We bring to life the environmental
solutions demanded by society through the development and sale of eco-friendly products as well as forest
conservation activities through The Pack Forest® Environment Fund.

The Pack Group Integrated Report 2024

18

Value creation story

The Pack Group’s medium-term management plan identifies three important strategies for achieving the plan’s targets.
We will enhance returns to shareholders by clarifying target markets for growth, enhancing human capital—one of our key forms ofConsolidated sales

107

Target of
Fiscal Year 2025

—Start of purpose-based management andSustainable Management—

Operating income

8.3

billion yen

ROE

8billion yen

Focusing on target markets

ROIC

8

% or more

Growth strategy

Evolution

Sloganmanagement capital—and various investments in growth.

% or more

Numerical target achievement process

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. While aiming to maintain ROE and ROIC of 8% ormore as indicators of return on capital, as returns to shareholders we will aim for a total payout ratio of 50% through increasing the dividend payout
ratio and acquiring treasury shares.
Operating income (actual/initial plan)

120

1.0

12

+

95.5
79.6

78.4

97.7

89.0

94.0

6.8
5.9

60

40

3.2

billion yen

107.0

101.0

7.7
6.4

1.3

1.4

+

+

100.0

billion yen

billion yen

8.1

8.3

6.7

7.0

4.1

0

FY2022

Generating results through proposal-based sales in
response to growing market demand and the changing
business environment

FY2023

FY2024FY2023
results

YoY+12.8%FY2022
results

FY2023
results

14.0 billion yen 14.7 billion yen

FY2022
results

YoY+5.0%

FY2023
results

50.0 billion yen 54.8 billion yen

YoY
+9.6%

Enhancing human capital, our most important formof 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.
Securing diverse humanresources• Enhancing midcareer hiring• Growing employment
opportunities• Promoting women
P. 36

Improving employee engagement

HR development• Conducting engagement surveys• Adopting transfer-restricted
share-based incentive system underthe employee stock ownershipP. 37
program• Implementing training programs
suited to individual employee tiers,
including newly adopted training
programs• Implementing digital-transformation
training for all officers andemployees (700 trainees)

Working-environment
improvements• Revising work regulations to adopt
remote work as a standard option• Encouraging men to take childcare
P. 37
leave, etc.

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).

40

FY2021Growing sales by meeting increasingly diverse demandthrough a wide range of products and services

Cash-flow maximization and shareholder returns

6

2

FY2020Growing sales centered on new market development
based on our R&D and proposal strengths to meetgrowing demand for paper cartons

820

FY2019Retail and other markets

10

FY2025

FY2023 results and issues
Results

IssuesThanks to synergies between efforts to promote a growth strategy throughthe Group’s strengths in solutions-based sales and enhancing production
capacity through strategic capital investment, the Group achieved higher
than expected growth in the first year of the medium-term management plan.
In addition to revising numerical targets upward, we revised our policy
on shareholder returns as we successfully promoted efforts to increase
corporate value.

Some of the measures launched in FY2023 under the growth strategy failed
to contribute to business results.
We will strive to improve results in FY2024-2025 through means
including ASEAN sales-channel development, enhancing the lineup of paper
cartons, development of materials and processes for automated packing, andgrowing sales.

Financial strategy

80

Revised FY2024-2025 targets (Billion yen)

FY2023 results

Human capital strategy

including business partners, shareholders and employees.

100

e-Commerce, mail order market, and logistics industry

25.0 billion yen 28.2 billion yen

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,

Net sales (actual/initial plan)

Food products market

FY2022
results

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(Billion yen)

We are selecting and prioritizing target markets to reflect contemporary trends. In the food products market, including fast food and convenience stores, weare expanding use of our products by testing to control quality risks, responding to demand for larger lot sizes and delivery use, and proposing simplificationof packing and storage on the work floor 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 efficient packages.

Strategy

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.

Important strategies and their progress

Sustainability (ESG)
initiatives

and has set numerical targets to be achieved by the fiscal year ending December 31, 2025.

Group data

The Pack Group will implement sustainable management based on our Purpose (fundamental mission) and Basic Policy of Sustainable Management

About The Pack

Medium-term management plan (FY2023-FY2025)

Investing in growth to support our businesses

Enhancing returns to shareholders

Capital investment• We will strive to increase corporate value still further through dialogue withshareholders and investors and ongoing consideration of related matters in the
Board of Directors and other bodies.
• In addition to aiming to maintain ROE and ROIC of 8% or more as indicators of
return on capital, as returns to shareholders we will aim for a total payout ratio of
50% through increasing the dividend payout ratio and acquiring treasury shares.

Invested 1.74 billion yen in FY2023, out of planned investment of
6.5 billion yen over three years• Strategic investments in FY2023- Paper cartons: Increasing production capacity for food-productcontainers, expanding the lineup of materials for e-commerce use- Paper bags: Increasing production capacity, streamlining and laborsaving• FY2024-2025 strategic investment plans- Paper cartons: Increasing production capacity for paper cartons
overall, expanding the product lineup, streamlining and labor saving- Paper bags: Increasing production capacity

Upgrading the backbone system
Human investment
FY2023 result: 980 million yen• 60 million yen in HR development and hiring• 920 million yen in increased employment and wages increases

We plan to make aggressive human investments in FY2024 as well

Revised plans
Dividend payout
ratio

FY2023 result: 30%
FY2024-2025: Maintaining at 35% or higher

Acquisition oftreasury shares

FY2023 result: None
FY2024-2025: Acquisition of up to 1.0 billion yen in treasury
shares each year

Total shareholder
returns andtotal payout ratio

8.0 billion yen
Breakdown
FY2023 result
FY2024FY2025

Dividends
1.7 billion yen
2.2 billion yen
2.2 billion yen

Acquisition of treasury shares
None
Up to 1.0 billion yen
Up to 1.0 billion yen

Total payout ratio
30%
50%
50%

Briefing Materials on Business Results for the Year Ended December 31, 2023 https://www.thepack.co.jp/dcms_media/other/2024.02.29en.pdf

19

The Pack Group Integrated Report 2024

The Pack Group Integrated Report 2024

20

External environment (risks and opportunities)

Basic Policy of Sustainable Management

External environment (risks and opportunities)

In 2023, we established the Basic Policy of Sustainable Management as a new management policy reflecting social and business environmental

To be able to adapt to any societal changes, the Group anticipates the following risks and opportunities. Corresponding materiality issues also are

conditions.

shown below.

1
Politics

The Sustainable Committee (chaired by the President and CEO) addresses promotion of sustainable management within the Group.

Sustainable Committee
the Board of Directors to address efforts to promote sustainable

Board of Directors

Auditing

management within the Group. The Sustainable Committee and its
executive body, the Sustainable Committee Secretariat, work with

Inquiries

Responses / reporting

the Conference of Business Divisions, Business Units, and Group
companies to advise and make decisions on the operation andpromotion of sustainable management, the formulation of policies
on key issues, management of the progress of initiatives, and theInternal
auditing

Sustainable Committee

Audit andSupervisory
Board
Cooperation

Audit Office

Economics

In January 2023, we established the Sustainable Committee under2

Increase in institutional investors through3 enhancement of ESG initiatives in line with

4 business models

laws, regulations, international standards, etc.
Birth of new merchandise, services, and

5

Risk

Increasing costs of raw materials,
manufacturing, and shipping

6

Risk

Rising hedge costs in raw-materials
procurement

7

The Board of Directors consults with the Sustainable Committee
Divisions will work with the Sustainable Committee to share
information. Business Units and Group companies implement various
measures and provide results and data. The Audit andInstruction

ReportingBusiness Units andGroup Companies

Supervisory Board and the Audit Office provide supplemental

SocietyBusiness
Divisionscompanies.
to set policy and provide oversight. The Conference of Business

Cooperation Conference ofTechnology

and manages KPIs in collaboration with the Business Units and Group

Membership4

21

Meetings/year

8

The Pack Group Integrated Report 2024

Agenda Final confirmation of disclosure in line with TCFD recommendations
 Checking on progress of CFP initiatives
 Dealing with sustainability rating agencies
 Expanding activities of The Pack Forest® Environment Fund
 Publishing SHINKA (evolution) as an internal communication tool
 Formulating materiality KPIs

Promoting supply chain risk
management

Securing soundness, transparency,
and efficiency in management

Providing solutions to increasingly
diverse social issues

Maintaining and improving quality
through joint efforts with business
partners
Contributing to developing future
generations and fostering
environmental awarenessPromoting diverse work styles thatencourage all employees to thrive

○

○

○

○

○

○

○

○

○

○

○

○

11

 emphasizing safety and reliability

Creation of products and services

○

○

○

○

○

○

○

○

○

○

○

Declining purchases in brick-and-mortar
stores, rising risks of information leaks, andincreased response costs as new technologies
spread and are widely adopted○

Reduced operation costs due to the arrival of○ new technologies and services

○

○

○

14

Risk

Rising tax burdens due to the adoption ofcarbon taxes

○

○

○

○

○

○

15

Risk

Rising procurement costs due to changes inforestry resources

○

○

○

○

○

○

16

18

Supply chain disruptions and production
Risk suspensions due to increasingly frequent
natural disasters
Growth in business opportunities due to move away from plastics
Risk

○
○

○

○

○

○

○

○

Increasing costs of adapting to legal,
regulatory, and litigation risks○○

Increasing corporate value through enhanced

○

○

19

 governance20

Birth of new business opportunities in
response to enhanced laws or regulations

Value creation story○

Developing diverse human resources,
increasing labor productivity Growing demand for new product use

○
○

○

10

○

○

○

○



Risk

○

○

○

9

13

○

○

Difficulty securing diverse human resources
and partners

Risk

12

○

 Building energy-saving supply chains

8

17

Legal

Meetings of the Sustainable Committee (2023)

Environment

audits related to these initiatives.

Developing and cultivating thecapacity to offer total solutions
related to packaging

Establishment of local-production/localconsumption models leveraging our robust
China

Chair: President & CEO

Sustainable Committee
Secretariat

Governance○ supply chains in Japan, the United States, andincorporation of these policies into the medium-term management
plan. The Sustainable Committee Secretariat promotes action plans

Promoting employee health andsafetyInterruption of imports of raw materials or
rising import costs due to disputes or national
security policies

Society

Contributing to environmental
conservation and preservation

Risk

Promotion structure

Reducing environmental impact
throughout our business activities

Item

Promoting eco-friendly productplanning and technologicaldevelopment

No.

Risk/opportunity

External factor

Environment

As is expressed in The Pack Group’s corporate motto, we are passionate and dedicated to our partnerships in all our activities. Furthermore, we
pursue sustainable management in keeping with the purpose of our existence (purpose): to provide packaging solutions to contribute to aprosperous society and bring satisfaction to people. As a company offering total solutions related to packaging, we help solve the many issues
facing our stakeholders through the creation of new value in packaging, thereby contributing to a prosperous and sustainable society. To thisend, we strive to deliver environmental, social, and economic value that is unique to The Pack Group, based on sustained growth and theability to adapt to social change.

Co-creating brand value with ourcustomers

Basic Policy of Sustainable Management

Strategy

Materiality (important issues)

Sustainability (ESG)
initiatives○: Materiality issues corresponding to risks and opportunities

bring satisfaction to people.

Group data

We will deliver environmental, social, and economic value that only The Pack Group can offer, to realize a prosperous and sustainable society and

About The Pack

Basic Policy of Sustainable Management/promotion structure

○

○

○

The Pack Group Integrated Report 2024

22

About The Pack

Materiality issue identification process/materiality list

In 2022 the Group identified 12 materiality issues on five major themes. Specific materiality initiatives are shown below. We will promote andList of Materiality issues organized from an ESG point of view
Materiality (Important Issues)

January 2022. In July 2022, the Materialities were approved by the Developing, procuring, and supplying eco-friendly raw materials,

Board of Directors and finalized.

Promoting eco-friendly productplanning and technologicaldevelopment

In September 2023, we established five materiality KPIs. We arepromoting initiatives intended to achieve these KPIs by FY2030. We
will strive toward sustained growth in corporate value by checking
progress on, assessing, and updating these materiality issues and KPIs

Theme 01

through the plan-do-check-act (PDCA) cycle.

Delivering solutions
to environmental issues
through our businessactivities

Step

1

Organizing study meetings held by the
Sustainable Business Team, which is amember of the project team that identifies
materiality topics

E

The project team has at least one individual from each department
responsible for topics such as sales, quality control, finance, legal affairs,
human resources, general affairs, and business strategy. Multiple study
meetings to date have strengthened the understanding of teammembers regarding terminology and sustainable management at othercompanies. Study meetings have also been held for executives topromote their understanding and discussion of initiatives to help build anarrative on sustainable management and value creation as well as
initiatives related to the Task Force on Climate-related Financial
Disclosures (TCFD).
Step

2

Step

3

Promoting employee healthand safety

Theme 02

Valuing and nurturing people

Step

23

4
5

Submitting the materiality topics throughthe Sustainable Committee to the Boardof Directors for approval

The Pack Group Integrated Report 2024

Developing and cultivating thecapacity to offer total solutions
related to packaging
Promoting diverse work styles
that encourage all employees tothriveS

We studied how to maintain and grow management capitalcomprising these six types of capital and identified related issues. We
also defined initiatives for each issue as it relates to the environment,
customers, people and labor, local communities and society, andmanagement.

Step

including forestry-certified and mixed paper Proposing packaging that requires reduced volumes of raw
materials
 Proposing solutions to improve work efficiency through use of our
packaging

Association with SDGs

 Proposing alternative surface processing technologies to replace

plastic laminates Developing alternative paper packaging to replace plastic

packaging Developing reusable packaging
 Developing eco-friendly plastic packaging

 Purifying and reusing water used in manufacturing processes Transitioning to renewable energy Reducing CO2 emissions (intensity)

 Appropriately managing industrial waste and reducing emissions;promoting recycling Preserving and restoring forest and mountain areas
 Planting trees with consideration for ecosystems

 Establishing a new environment fund to support efforts such as thepreservation and restoration of coasts and rivers
 Investing in efforts that contribute to environmental conservationand preservation

Identifying themes (issues) for maintaining
and growing our management capital anddefining initiatives for each issue

Deciding on materiality topics based on
their importance to stakeholders andto the Company

Reducing environmental impact
throughout our businessactivities

Contributing to environmental
conservation and preservation

Reviewing the value chain and ascertaining
our management capital (strengths)
We examined our value chain in great detail, identifying our uniquequalities and points of differentiation from our competitors.
Based on the findings, we identified our management capital:
financial capital, manufacturing capital, human capital, intellectual
capital, social and relationship capital, and natural capital.

Initiatives

Strategy

Major themes

members centering on the Sustainable Business Team established in

Sustainability (ESG)
initiatives

A set of Materialities (important issues) was identified by the project

Theme 03

Building and enhancing
relations of trustwith our business partners
and customers

Theme 04

Contributing to social
development andprosperity

Co-creating brand value withour customers
Maintaining and improving
quality through joint efforts withbusiness partners
Contributing to developing
future generations and fostering
environmental awareness Maintaining and improving the health of employees and theirfamilies as set forth in the Health and Productivity Management
Declaration
 Implementing safety measures at manufacturing sites

 Improving business efficiency and enhancing proposal capabilities
 Promoting product development through training sessions in Developing environments for work styles suited to employee

 Developing teleworking environments and adopting Promoting an action plan to empower women in the workplace Developing employee skills and optimizing assignments through Designing remuneration schemes to allow employees to work withpeace of mind and other systems to secure post-retirement plans Identifying and analyzing customer issues and providing solutions
 Collecting information on packaging in Japan and overseas andcommunicating market developments and trends
 Implementing joint development of production technologies andestablishing mass production in partnership with production
subcontractors
 Improving quality by enhancing quality control structures
 Holding visiting classes for elementary school students
 Participating in educational content (including online)

G

Theme 05

Enhancing managementfoundations

Promoting supply chain risk
management

through digital transformation (DX)
which manufacturing sites participate
communication tools
job rotations

 Building a more open human resource evaluation system
 Providing multifaceted proposals on distribution and logistics

solutions to achieve labor savings, automation, and mechanization® Environment
Fund to preserve forests

 Proposing ways to participate in The Pack Forest
 Establishing eco-friendly logistics systems

 Investing in efforts that contribute to the development of future

generations

 Participating in and supporting activities that lead to increased

environmental awareness Support for activities that create jobs for people with disabilities and Proposing total solutions that combine packaging with packing andactivities that assist them in becoming self-sufficient and finding
employment
 Supporting activities of children to support environmental
protection

 Improving corporate governance structures

 Implementing fair and objective decision-making processes forpromoting a PAS system Developing packaging in a way that helps to address labor

shortages

logistics equipment

Securing soundness,transparency, and efficiency inmanagement

natural disasters

specialists who support The Pack as a company offering totalsolutions related to packaging
 Developing and utilizing databases on packaging expertise Achieving labor savings, automation, and reduced CO2 emissions by

Providing solutions toincreasingly diverse social
issues Stockpiling disaster supplies to keep employees safe in the event of Using the Packaging Laboratory to foster an organization oflifestyles

 Disclosing information on the status of initiatives related to all

management appointments

principles of the Corporate Governance Code
 Strengthening management soundness through the C-Line(compliance line as the internal whistleblowing system) Improving the quality of disclosure to shareholders and other Strengthening supply chains that can respond to various

 Enhancing resilience to ensure the appropriate operation of

procurement, production, and sales risksGroup data

Identification process

Value creation story

strengthen these activities and thereby contribute to a sustainable and prosperous society.

stakeholders
 Securing diversity among the Board of Directors

business continuity planning Countering information leaks and system failures associated withcybersecurity risks

The Pack Group Integrated Report 202424

Investment in growth drivers toward achievement of financial and nonfinancial KPIs

In September 2023, we established five materiality KPIs. We are promoting initiatives intended to achieve these KPIs by FY2030.

With long-term perspective, the Pack Group invests in and promotes growth drivers to achieve both financial and nonfinancial KPIs targeting

We will monitor our progress on and assess and update these KPIs through the plan-do-check-act (PDCA) cycle.

About The Pack

Materiality KPIs

materiality issues. The KPIs are set and verified to ensure that achievement of nonfinancial KPIs also contributes to achievement of financial KPIs.
Under the FY2023-2025 medium-term management plan, we are investing in human capital, intellectual capital, and manufacturing capital,
Value creation story

sources of The Packs strengths, and promoting various related measures, as important strategies.
Materiality KPIs and results for the past five years

Theme 02
We value andnurturepeople.
Theme 03
Building andenhancing
relations of trustwith ourbusiness
partners andcustomers

Promotingeco-friendly
product planningand technologicaldevelopment

Achieving a ratio of sales of
FSC®-certified products (paperbags, paper cartons,
corrugated boxes) to total
sales of 50% or higher *1

Reducing
environmental
impactthroughout ourbusiness activities

Reducing CO2 emissions(Scopes 1 and 2) by 46% vs.
FY2018 (targeting 8997 t)

Contributing toenvironmental
conservation andpreservation

Implementing 15 The Pack
Forest® Environment Fund
activities, with 500 participants
per yearDateestablished

September
2023

September
2023

September
2023

2019

5.5%

6.9%
(15,512 t)

4
160

2020

2021

10.8%

2022

13.2%

10.5%
(14,914 t)

10.6%(14,894 t)

0
0

17.4%

7.6%
(15,399 t)

0
0

4
111

2023

20.2%

-0.6%
(16,756 t)

9253

Target FY forachievement

FY2030

FY2030

FY2030

Important strategies

Important strategies under the current medium-term management plan

Investment in promotion of growth drivers toward achievement

Investment policies

Promotion policies

Human capital Important strategies

Target markets

 Hiring and development

 Growing business territories and domains

 Expanding hiring opportunities and methods
 Ensuring appropriate wage structures. enhancing benefits

 Focusing on the food-product and e-commerce/mail ordermarket/logistics industry
 Growing ASEAN sales channels

 Promoting diverse workstyles

Important strategies New-market research and analysis

Intellectual capital Collecting, accumulating, and sharing

market and sales information

Promoting diverse
work styles thatencourage all
employees tothriveIncreasing women’s
percentage of managers(managers or above) to 15% or
more

September
2023

3.3%

5.3%

4.9%

6.7%

6.3%

FY2030 Enhancing package case studies
 Promoting digital transformation for timely sharing of market
and sales information internally Enhancing both real-world (Package Laboratories,
comprehensive information meetings) and digital (proposal
databases, videos) approaches

Co-creating brandvalue with ourcustomers

Earning the support of 300
firms for The Pack Forest®
Environment Fund*2

September
2023

24

44

67

94

123

FY2030 Enhancing manufacturing

Manufacturing capital

Products and services

 Enhancing product lineup Expanding into related businesses
 Focusing on development of primary food containers, delivery
bags, and eco-friendly products Developing businesses in automatic packing machine,
assembly, and sorting

Business model Corporate proposal-based sales

facilities and equipment
 Strengthening supply chains Solutions-based sales

 Enhancing production capacity for paper bags and paper
cartons at existing plants
 Labor saving, streamlining, energy conservation, resource
conservation*1 Sales: The Pack (nonconsolidated) paper products business as a whole *2 Number of companies with sales results

Strategy

Deliveringsolutionstoenvironmental
issuesthrough ourbusiness
activities

KPI

Sustainability (ESG)
initiatives

Theme 01

Materiality(Important Issues)Group data

Major themes

 Proposal activities including measures to increase customer
brand value Solutions to environmental issues and the labor shortage

KPI management
Contributions to achievement of KPIs

The Sustainable Committee and the Sustainable Committee
Secretariat, its executive arm, set and manage materiality KPIs. The

Materiality issues, nonfinancial KPIs

Plan

Sustainable Committee Secretariat reports every half-year to the

FY2030 targets
Delivering solutions to environmental issues
through our business activities

Setting and updating KPIs

Sustainable Committee on progress toward the KPIs, ascertained inpartnership with Business Units and Group companies. In addition, it
assesses results each year, proposes improvements for the following
year, and sets new KPIs and updates existing ones.
The Sustainable Committee works together with the Conferenceof Business Divisions to promote practical efforts targeting the KPIs in
individual business sections.

ActionDo

Assessing results,
proposing improvements
for the following year,
and setting new KPIs andupdating existing ones

Promoting and executing
measures to achieve the KPIs

achieve the KPIs.
A management structure has been established to promote andmonitor progress toward the KPIs, striving toward fair assessment of
individual business sections.

25

The Pack Group Integrated Report 2024

FY2025 targets
Net sales

Operating income

107.0 billion yen 8.3 billion yen

Valuing and nurturing people

Each business section employs the plan-do-check-act (PDCA)
cycle to improve productivity across the organization and strives to Achieving a ratio of sales of FSC®-certified products (paper bags,
paper cartons, corrugated boxes) to total sales of 50% or higher
 Reducing CO2 emissions (Scopes 1 and 2) by 46% vs. FY2018
 Implementing 15 The Pack Forest® Environment Fund activities,
with 500 participants per year

Financial KPIs

Check
Promoting and checking on
progress toward the KPIs

 Increasing women’s percentage of managers (manager or above)
to 15% or more

Building and enhancing relations of trust withour business partners and customers

ROE

8 % or more

ROIC

8 % or more

 Earning the support of 300 firms for The Pack Forest® Environment
Fund

The Pack Group Integrated Report 2024

26

Resolving environmental issues
through business activities
Basic policy o Environmental philosophy n environmental activities

We will work to protect ourirreplaceable environment and broadly
contribute to society out of our deep
respect for people and nature as wellto inspire future generations.

1. We will promote the development of safe, environmentally friendly products andtechnologies.
2. We will utilize resources and energy efficiently and work to minimize and recycle waste.
3. We will pursue customer satisfaction through environmental activities.
4. We will actively participate in local and national environmental protection campaigns.

Four plants (per yen of processing)refers to the volume of CO2 emitted from a fixed amount of business(g- CO2/yen)

activities. We calculate CO2 emissions intensity by dividing CO2

3.00

emissions converted from electricity, natural gas, and other energy
needed in manufacturing using fixed coefficients by plant processing

2.00

volume. This is used as a general indicator of energy conservation
because it is unaffected by changes in sales or production volume.

Osaka and Ibaraki plants

Top management

Tokyo Plant

Top management
Person responsiblefor internal audits

Person responsiblefor internal audits
Person responsiblefor internal audits

Person responsiblefor internal audits

Promotion office

Top management

Person responsiblefor internal audits
Person responsiblefor internal audits

Promotion office

Person responsiblefor internal audits
Person responsiblefor internal audits

Promotion office

Promotion officeBack-office sections

Logistics sections

Manufacturing sections

Back-office sections

Logistics sections

Manufacturing sections

Back-office sections

Logistics sections

Manufacturing sections

Procurement sections

Kyushu sales sections

Chushikoku sales sections

Osaka sales sections

Chubu sales sections

Tokyo sales sections

Corporate sections

Environmental targets (ISO14001)

Headquarters
and sales group

FY2023
TargetGrowing sales ofForest Products*1

Growing sales of Forest Products

Growing sales of
FSC®-certified products

Increasing sales of FSC®-certified

Forest conservation
activities

Implementing forest conservation

by 20% or more vs. 2022 *2

products by +30% vs. 2022*2

activities 10 times

Osaka Plant
Energy conservation

Nara Plant

Energy conservation

Energy conservation

Result〇Increasing sales of Forest Products by +20%

+24.0%

×

Increasing sales of FSC®-certified products

10 times*3〇

Implementation of forest conservation activities-11.7%〇+22.3%The Pack Group Integrated Report 2024

vs. 2023

by +30% vs. 2023

10 times

Reducing CO2 intensity:

Reductions to below actual 2022 figures

Reduction to below actual 2023 figure

Reducing CO2 intensity:
Reducing by 27% vs. 2012
Reducing CO2 intensity:
Reductions of 1% vs. 2022*2-18.8%〇-32.6%

〇

+3.0%

×

*1 Forest Products subject to The Pack Forest® Environment Fund include bagasse, Forest Light, Custard Color, Sugar Brown, biodegradable rope, etc.
*2 Target revised upward in 2023
*3 Including activities canceled due to weather

27

TargetReducing CO2 intensity:

Ibaraki Plant

Tokyo Plant

FY2024
Performance

Reducing CO2 intensity:
Reducing by 33.6% vs. 2012
Reducing CO2 intensity:
Reductions of 3% vs. 2023

1.68

2020

2021

2022

2023

Thereof (PRTR Act). In addition, in bag and carton production, we aresuitably managed pursuant to the Act on Confirmation, etc. of

making steady progress on switching to safe adhesives free of

Release Amounts of Specific Chemical Substances in the

restricted chemical substances. In FY2023, we reduced the volume ofEnvironment and Promotion of Improvements to the Management

substances subject to the PRTR Act by 14%.

Volumes of Type I designated chemical substances under the PRTR Act (total for all four plants)
Material in which included

(t)

2020

2021

2022

2023

0.8

0.0

0.0

0.0

TolueneAdhesives

XyleneAdhesives

0.0

0.0

0.0

0.0

Phthalates

Adhesives

0.2

0.0

0.0

0.0

Boric acid and compounds thereof

Adhesives

1.6

1.6

1.4

1.2

Monochlorobenzene

Adhesives

0.8

0.0

0.0

0.0

Dichloromethane

Offset-printing cleaning solution

0.0

0.0

0.0

0.0

1,2-Dichloropropane

Offset-printing cleaning solution

0.0

0.0

0.0

0.0

3.4

1.6

1.4

1.2

Total

Measures

2.08

The chemical substances we use in manufacturing processes are

Subject chemical substances

Organization

2019

2.02

Appropriate management of chemical substances

Nara Plant

Top management

2018

1.99

Sustainability (ESG)
initiatives

Headquarters, procurement, and sales groups

1.80

1.00

0

Environmental management organization (ISO14001)

1.85

Strategy

Environmental philosophy

Also known as the CO2 emissions coefficient, CO2 emissions intensity

Value creation story

CO2 emissions intensity

Group data

Major theme

About The Pack

E Environment

ESG initiatives

TOPICS

The new headquarters building

The new headquarters building was completed in March 2023 on the site at which the Company was originally founded. This building issymbolic of our sustainability management, designed to achieve high environmental performance to contribute to a decarbonized society,that accounts for nearby residential areas and emphasizes comfortable work sites.
Eco-friendly technologies employed Natural ventilation and lighting using eco voids
 Solar panels for power generation
 High-thermal-insulating exterior walls and low-E windows to lessen
the air conditioning burden LED lighting with automatic dimmers using sensors in working
spaces Air volume of all heat exchangers is controlled in line with changes
in number of people in the building (CO2 density)
Building evaluations and awards
 Zero-emission building accreditation (ZEB Ready, highest BELS
evaluation)
 CASBEE accreditation (CASBEE S Rank [highest evaluation]) Winner, office section, FY2023 Osaka Environmentally Friendly
Architecture Awards
The Pack Group Integrated Report 2024

28

Disclosure in accordance with TCFD recommendations

About The Pack

E Environment

Key business risks and opportunities
Item

Event

Potential impact

Business impact

Assessment

Risks

Disclosures (TCFD) recommendations. The Pack will strive to provide appropriate disclosure to stakeholders by enhancing the content of disclosure in

Rising business costs, including thecost of fuel and raw materials, due tostricter regulations and carbon taxes

Adopting carbon taxes

The Sustainable Committee reviews the risks and opportunities

the Board of Directors manages and promotes response to climate

associated with climate change annually, assesses risks andchange. The Sustainable Committee and the Sustainable Committee

opportunities based on various considerations, including their

Secretariat, its executive arm, in partnership with the Conference of

probability and impact and what recourses are available. In reviewing

Business Divisions, Business Units, and Group companies, ascertain

assessments of risks and opportunities, it refers to various scenariosrisks and opportunities associated with climate change, draft related

provided by organizations such as the International Energy Agency

targets, monitor and assess the state of related efforts, and submit(IEA) and the Intergovernmental Panel on Climate Change (IPCC), andreports and answers to the Board of Directors twice a year on theinterviews related business sections as necessary. Among the risks

results of this process. While the Sustainable Committee meets twiceand opportunities associated with climate change, those consideredannually in principle, it may meet at other times to address mattersto be highly important are reported to the Board of Directors throughjudged by the chairperson to be highly important or urgent.

the Sustainable Committee. The Sustainable Committee drafts

The Board of Directors consults with and supervises the

responses to risks and opportunities and manages the progress

Sustainable Committee and makes decisions on targets.

thereof in accordance with established guidelines.

More rigorous CO2 emissions
and energy conservation
regulations

Growing demand
for low carbon products

Transitional
Risks Opportunities

2°C scenario

Promotion of switchingfrom plastic to paper
products

assesses their importance, and reviews their assessments. It also

The Group has considered two scenarios, the 2°C scenario and 4°C

considers action plans and response policies and inspects andscenario, for the year 2030, for a scope consisting of The Packfollows up on the state of execution periodically.

Corporation. In doing so, it referred to the scenarios of the IEA’s WorldThe Conference of Business Divisions consults with theEnergy Outlook, the IPPC’s Shared Socioeconomic Pathways (SSPs)

Sustainable Committee to share information. Business Units andand Representative Concentration Pathways (RCPs) scenarios, andGroup companies implement various measures and provide results

various forecasts and plans issued by the Japanese government andand data.

other parties. Analyzing each event along the two axes of probability

The Audit and Supervisory Board and the Audit Office provide
supplemental audits related to these initiatives.
Board of Directors

Inquiries

Auditing

Responses / reporting
Internal
auditing

Sustainable Committee

Growing demand
for recycling materials

and impact, it assessed business risks and opportunities at threelevels: high, medium, and low. We will increase the resilience ofAudit andSupervisory
Board

Reputation

Strategy

Declining demand for existing highcarbon products
Opportunities

Increasing demand for low carbon
products (paper products)

Declining corporate brandvalue due to inadequate
environmental measures

Acute

opportunities associated with climate change, identifies them andReducing CO2 emissions intensity
through the development of efficientlogistics systems

Increasing frequency andscale of weather-related
disasters

Opportunities

Increased demand for paper products(bags, cartons)

Risks

Rising cost of used paper and otherrecycling materials

Risks

Changes in evaluations bystakeholders

business activities by promoting optimal initiatives based on theimportant business risks and opportunities clarified through thisprocess.

Cooperation

Audit Office

Risks

Suspension of operations due todamage to Company facilities andsupply chains

Chair: President & CEO
Risks

PhysicalCooperation Conference ofBusiness
Divisions

Instruction

ReportingBusiness Units and Group companies

29

The Pack Group Integrated Report 2024

Increasing numbers ofdays of fierce heat

Risks Opportunities

4°C scenario

Inadequate electricity due to growing
numbers of days of fierce heat
Risks

Rising air conditioning and other costs

Chronic

Sustainable Committee
Secretariat

Emissions intensity expected to be
reduced by making the Company’slogistics systems more efficient in
partnership with leading logistics
firms

Low

Risks

Tasked with overseeing the executive organization, theSustainable Committee Secretariat reviews anticipated risks andOpportunities

Opportunities

Improved businesssustainability throughenvironmental measures

Achieving differentiation from thecompetition and containing
opportunity loss by ensuring a stablesupply of products

Projections suggest that customers
and consumers would move awayfrom existing high carbon products
toward low carbon products.

Low

High

Growing consumer movement awayfrom plastic products to more
eco-friendly paper products due toexpanding environmental awarenessHigh

Projections suggest that market prices
of used paper and other materials
would rise as demand for recycling
materials grows, leading to higher
manufacturing costs.

MediumProjections suggest that failure toadapt to climate change may lead to
exclusion from investments, chiefly byinstitutional investors, and lessfavorable lending conditions fromfinancial institutions.

Sustainability (ESG)
initiatives

The Sustainable Committee (chaired by the President and CEO) underHigh

Group data

Risk management

Markets

Governance

Policy, legal

addition to further accelerating related initiatives.

New tax burdens on emissions
expected to be incurred withadoption of carbon taxes

Strategy

impact throughout our business activities as a key materiality issue. The following disclosures reflect Task Force on Climate-Related Financial

Value creation story

Recognizing the major impacts climate change would have on the Company and its stakeholders, The Pack has identified reducing environmental

Low

Despite the risk of fundraisingobstacles, the impact might becontrolled by enhancing disclosure andimplementing measures to adapt toclimate change.
Projections suggest that the
procurement of raw materials,
product deliveries, and other activities
may be affected by interruptions oflogistics chains due toweather-related disasters.

Low

Projections suggest that growth indemand for electricity due to growing
numbers of days of fierce heat may
threaten business continuity due topower failures and otherconsequences.

Low

Projections suggest that theCompany can differentiate itself fromthe competition by increasing its
business continuity by adapting toclimate change to ensure a stablesupply of products and to avoid
shortages.

Low

The Pack Group Integrated Report 202430

Scope 3 emissions categories
Emissions(t- CO2)

Share of Scope 3
emissions1

Purchased goods and services

580,437

83.6%• Establishing guidelines on adopting machinery and using machinery with a focus on efficiency
Stricter regulations governing CO2 emissions
and energy conservation• Adopting and expanding facilities to reduce environmental impact—for example, by installing solar power2

Capital goods

15,958

2.3%

3,138

0.5%

27,343

3.9%• Promoting the development of efficient logistics systems• Promoting contracts for CO2-free electricity from renewables

3• Considering carbon offsets through the purchase of non-fossil-fuel certificates, etc.
• Together with boosting sales of FSC® and other Forest Products, actively proposing and expanding the lineup

Growth in demand for low carbon productsof other paper products

Promoting the switch from plastic topaper products

Waste generated by operations

937

0.1%

products

6

Business travel

349

0.1%

• Ensuring stable supplies and effective risk management for emergencies through joint efforts with our four

7

Employee commuting

1,290

0.2%

8

Upstream leased assets

–

–

9

Downstream transportation anddistribution

5,310

0.8%

10 Processing of sold products

320

0.0%

11 Use of sold products––

End-of-life treatment of
12
sold products

58,817

8.5%

13 Downstream leased assets––

14 Franchises––

15 Investments––

693,899

100.0%

plants in Japan, Group companies, and subcontractor plants• Promoting supply chain resiliency by developing new suppliers and strengthening relations with existing
suppliers

Indicators and targets
The Pack has established the following indicators and targets. Each business unit will strive to meet these targets under the oversight of
the Sustainable Committee.

Supply chain CO2 emissions results
We have determined that Scope 3, Category 1 emissions (from purchased products and services) account for 81.7% of total supply chain

Total Scope 3 emissions

CO2 emissions. In addition, we will consider ways to reduce total supply chain CO2 emissions.

Emissions(t- CO2)

Ratio

Scope 1

5,118

0.7%

Scope 2

11,638

1.6%

Scope 3

693,899

97.7%

Supply chain emissions

710,655

100.0%

Scope 1

Scope 2

0.7%

1.6%

Category 4(upstreamtransportation anddistribution)

Category 1(purchased goods
and services)

83.6%

3.9%

Each plant seeks to continue to adopt and deploy more efficient machinery and equipment in line with related guidelines. Investment
in machinery and equipment will continue in 2024 and beyond to help curb CO2 emissions.
[Target] By 2030, we hope to reduce CO2 emissions (Scopes 1 and 2) by 46% vs. FY2018.
conserve energy, including efficiency improvements in manufacturing and logistics sections.

Supply chain emissions

Category 1(purchased products
and services)

81.7%

The Pack Group Integrated Report 2024

693,899 t-CO2[Scope 1 and 2 results] In 2023, Scope 1 and Scope 2 emissions increased 8.8% year-on-year. We will maintain activities that

710,655 t-CO2

31

8.5%

CO2 emission reduction target (Scopes 1 and 2)

Emissions by scope
Scope

4.0%

2023 Scope 3 emissions

5• Moving ahead with the development of eco-friendly products and proposing their use as substitutes for plastic

Increasing the sustainabilityof eco-friendly businesses

4

Activities related to fuel andenergy not included in
Scopes 1 and 2
Upstream transportation anddistribution

Other categories

Sustainability (ESG)
initiatives• Rebuilding the head office building to make it highly environmentally efficient

Category 12(end-of-life treatmentof sold products)

Value creation story

Category

Strengths and initiatives

Group data

Event

StrategyStrengths and initiatives for addressing major opportunities

About The Pack

E Environment

Trends in CO2 emissions (Scopes 1 and 2)

16,662

15,512

14,914

14,894

15,39916,756KPI

Reduced by 46%

Scope 3

97.7%

Materiality

vs. FY2018

Scope 2

11,532

Scope 2

10,445

Scope 2

Scope 2

Scope 2

9,873

9,851

10,353

Scope 2

11,638

Scope 1

Scope 1

Scope 1

Scope 1

5,067

Scope 1

Scope 1

5,130

5,041

5,043

5,046

5,118

2018

2019

2020

2021

2022

2023

8,997

2030
Target(Unit: t-CO2)

The Pack Group Integrated Report 2024

32

Contributing to nature conservation and environmental preservation

Product development structure for environmentally-friendly products

Activities of The Pack Forest® Environment Fund

Demand for environmentally-friendly packaging is growing as we strive to achieve a sustainable society. We conduct research and development ofWe’ve been developing eco-friendly products since 1993, contributing a portion of our sales to fund forestry conservation activities. In 2000, we

environmentally-friendly products from the perspectives of materials, design, and technology. Core product development is handled by theestablished The Pack Forest® Environment Fund and launched volunteer activities to plant and thin forested areas. We also contribute funding for

Packaging Laboratory and by the Materials Development Section. Packaging Laboratory is engaged in development, mainly in structural design offorestry conservation activities. A portion of this fund is allocated to purchasing saplings and other forestation resources. Several times a year wefolding paper cartons and corrugated boxes, in cooperation with the company’s own plants, etc. The Material Development Section conducts

engage in joint activities with the nonprofit Eco Future Fund (EFF). To date, we’ve planted trees in eight locations across Japan, with the participation

research and development mainly in the field of materials and technology in cooperation with other companies.

not just of The Pack employees, but customers and the general public.

About The Pack

Product planning and technology development in consideration of theenvironment

Value creation story

E Environment

We remain committed to forest conservation activities suited to community needs in cooperation with government, nonpro t, and local

Examples of eco-friendly product development

Strategy

communities.

The Pack Forest® Environment Fund system
Forest conservation activities are underway at nine locations across Japan, funded by a portion of sales from products subject to The Pack Forest
Environment Fund, or calld Forest Products.

Craft VM Barrier paper-based film
packaging with high barrier andlight-shielding properties
Fully film-free Craft VM Barrier paper-based film
packaging is heat sealant coated for barrier andlight-shielding properties equivalent to aluminum vapor
deposited film. It helps reduce use of plastics in flexible
packaging for food products.

Compact cushioned CC-PACK®
transportation packaging material

Replacing plastic trays
with paper trays

CC-PACK® cushioned all-paper envelopes consist of
sheets made from special materials. They adjust flexibly
to accommodate the thickness of the contents andcontribute to resource conservation and recycling fortransportation packaging materials.

We developed paper trays to replace the molded plastic
trays used to retain product shape and prevent crushing.
The special design incorporates folds along the lines tomaintain tray shape and keep the sides in position.

(e.g., bagasse)

Eco-friendly materials

Sustainability (ESG)
initiatives

Materials
makersEco-friendly base paper,
non-wood-based paper, etc.
Forest Products

The Pack

Product proceeds

Customers

Volunteering(e.g., Biodegradable rope)

Tree planting andforest conservation
activities in Japan

Volunteering
DonationsGroup data

PapermakersExamples of eco-friendly product variations
Materials• FSC®-certified materials• Recycled paper • Non-wood-based paper • Biomass materials

Processing• Water-repellent varnish• Oil-resistant treatment from natural materials

Cooperatives activity• The Pack Forest® Environment Fund

Funding activities• Materials from recycled wastes

The Pack Forest®
Environment Fund

Subcontractor nonpro t:
Eco Future Fund (EFF)
http://www.eco-future.net/

FSC®-certified products (paper bags, paper cartons, corrugated boxes) as a percentage of sales and related targets
The Pack has earned FSC® Chain-of-Custody certification for paper and paper products using FSC®-certified materials and controlled material. Thismeans our customers can use packages made of raw materials from properly managed FSC®-certified forests and recycled materials. In 2023, we
identified a ratio of sales of FSC®-certified products (paper bags, paper containers, corrugated boxes) to total sales of at least 50% as a materiality KPI.
We will fulfill our corporate responsibilities to nature and society through sales of FSC®-certified products.

About the Forest MarkThe Forest Mark is our original logo for The Pack Forest® Environment Fund and forest conservation and tree-plantingactivities.
It can be printed on packages certi ed as Forest Products to help customers inform consumers of their contributions to forest
conservation activities.

Percentage of FSC®-certified products*Sales = The Pack paper products business as a whole (nonconsolidated)

FSC®-certified products (paper bags, paper cartons, corrugated boxes)
as a percentage of sales

Materiality

2023
result20.2%

Trends in activity results

KPI

2019

2020

2021

2022

2023

2030
target

5.5%

10.8%

13.2%

17.4%

20.2%

50% or higher

2030
target

50% or higher

Annual activities (times)
Annual participants (persons)Materiality

KPI

2019

2020 *

2021 *

2022

2023

2030
target

4

0

0

4

9

15

160

0

0

111

253

500

*Activities cancelled due to the COVID-19 pandemic

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About The Pack

Diverse human resources

We value and nurture people.

With an emphasis on human resource development, The Pack maintains comfortable workplaces where diverse human resources can demonstrate
their individuality and abilities. We will continue to respond to changes in society and develop attractive systems.

Human capital

Promoting women in the workplace

Under the corporate motto, , we have established the Corporate Philosophy, expressed by the following

We believe that an environment in which women can thrive is necessary if all employees are to work in comfort. In 2021, based on an analysis ofwords:    . In line with this philosophy, we see human resources as a priority in our capital management. Our HR systems seek

various issues related to the creation of working environments where people can comfortably work over the long term, we established our targets forto establish environments in which people can grow; build environments in which employees can work with peace of mind; develop employees

the future.

whose talents will be recognized universally; and build strong organizations. We pursue HR development efforts and maintain workplace

Action plan on promoting women in the workplaceenvironments in accordance with these aims.
The Medium-Term Management Plan includes a human capital strategy intended to enable the growth and vitality of The Pack and individuals
within the organization. Under these strategies, we secure, train, and develop diverse human resources, ensure appropriate staffing assignments,
improve working environments, and maximize employee engagement.

Training and other programs to support skills development Plan period: April 1, 2021 – March 31, 2026
 Targets:(1) Women accounting for at least 25% of permanent full-time employees(2) Women accounting for at least 35% of permanent full-time employees (newgraduates) hired(3) Women accounting for at least 10% of managerial personnel (managers andabove)

Overview of our human resource system
We introduced a new human resources system in 2020 to create a workplace where people can thrive. In the salary structure, the requirements forsalary increases and promotions have been made clearer. We are increasing lifetime annual income by reviewing salaries and retirement bene ts foryounger employees and employees who continue to work after retirement. As part of the evaluation system, the Human Resources Development

2020

2021

2022

2023

2026 target

All permanent full-time employees(persons)

892

881

841

835

840

–

Women permanent full-time employees(persons)

171

176

167

171

181

–

Percentage accounted for by women (%)

19.2

20.0

19.9

20.5

21.5

25% or higher

Women as a percentage of permanent full-time employees (new graduates) hired (Figures for each fiscal year are as of December 31)
2019

2020

2021

2022

2023

2026 target

All permanent full-time employees hired(persons)

39

30

13

20

28

–

Women permanent full-time employees
hired (persons)

8

11

6

7

14

–

Percentage accounted for by women (%)

20.5

36.7

46.2

35.0

50.0

35% or higher

Council holds evaluation meetings throughout the company in an effort to make evaluations as open and accurate as possible.
Personnel structure (career-improvement stage)

Action requirements

Wage structure① Basic skills ② Job skills ③ Management skills
Training
systemManagement
by objectives(MBO)

HR Development Conference (decisions on treatment)① Raises, promotions ② Bonuses ③ Career advancement ④ Reassignment

Materiality

Women as a percentage of managerial personnel (managers and above) (Figures for each fiscal year are as of December 31)
HR evaluation

KPI

2019

2020

2021

2022

2023

2026 target

2030 target

All permanent full-time employees hired(persons)

213

208

206

209

206

–

–

① Skills evaluation ② Bonus evaluation ③ Overall evaluation

Operation

Group data

training, support and evaluation programs to support skills development to enable highly motivated employees to perform at their best.

2019

Sustainability (ESG)
initiatives

Women as a percentage of permanent full-time employees (Figures for each fiscal year are as of December 31)

Under the HR system adopted in 2020, The Pack Group is making progress on developing workplaces in which employees can grow. We will enhance① Levels ② Job skills qualifications ③ HR courses ④ Ranks

 Issues and initiatives: One issue we face is the low number of women
personnel. This means that women account for a small percentage ofmanagerial personnel. In addition to hiring based on an awareness of thegender of new graduates hired, we plan to implement training onunderstanding the issues of diversity, gender, and systemic bias.

Talent management system

HR Development Conference

Women permanent full-time employees
hired (persons)

7

11

10

14

13

–

–

The talent management system introduced in 2022 centralizes

Based on the results of the performance reviews, talent development

Percentage accounted for by women (%)

3.3

5.3

4.9

6.7

6.3

10% or higher

15% or higher

employee information, including personal information, skills, pastmeetings are held throughout the company. At these meetings, wepositions, awards received, training completed, HR evaluations, andshare information about top talent throughout the company andmanagement by objectives, to support the appropriate placement

discuss ways to evaluate employees fairly and appropriately. It is also

Gender pay gap

and development of human resources. We plan to use this system,

an opportunity to evaluate the management skills of participating

The Pack applies a gender-neutral payroll structure. The key factors

which involves employees enhancing the information in their own

managers.

underlying the gap between male and female pay are average age,

profiles, as a tool for stimulating internal communication.

Skills-improvement support program
To encourage employee self-improvement, we’ve established a

Number of persons who used the skills-improvement support
program (total)

skills-improvement support program that provides economic
assistance for activities such as language learning and earning
qualifications. English and Chinese lessons are provided under
corporate contracts with major language schools operating across2019
Number of persons
who used the program(total)

9

2020
10

2021
9

2022
23

2023
21

Women’s pay as a percentage of men’s pay(Figures for each fiscal year are as of December 31)

2022

2023

percentages in managerial positions, and overtime, shift work,

Regular workers (%)

74.7

75.1

late-night work, and other allowances in manufacturing workplaces,

Nonregular workers (%)

63.7

64.5

All workers (%)

55.9

55.8

where men make up a large portion of the workforce. To eliminate
this gap, we plan to promote highly capable women to managerial
positions and to increase the percentage of women among new
graduate hires for career track positions by emphasizing ability
regardless of gender.

Value creation story

Major theme

S Society

Strategy

ESG initiatives

Subject period: January 1 – December 31
Regular workers: Permanent full-time employees (including secondees currently posted
outside the organization); nonregular workers: contracted employees, reemployees,
part-time employees
Pay: Includes commuting allowance.

Japan. Those learning English also have the option of online lessons.

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36

working days, or staggered working hours. The program was established to support diverse workstyles based on a comprehensive consideration ofsituations in which standard working hours may pose difficulties.

Quality control
The Pack has established a quality control organization to ensure high product quality, and performs ongoing training and education and other

Users of the comprehensive reduced working hours program

Users (persons)

Value creation story

for family members, hospital treatment, or family support to choose from various forms of employment, including six-hour working days, seven-hour

Building and deepening a trustful relationshipwith business partners and customers

activities related to quality and safety, and considers measures to consider and reflect complaints and irregularities. A quality control supervisory

2019

2020

2021

2022

2023

division under the direct supervision of the President has been established as an autonomous section in charge of oversight and supervision quality.

4

7

10

9

13

This division works with manufacturing quality control sections to improve product quality. In 2023, we established quality control and quality
assurance departments within the quality control supervisory division. We are striving to improve quality from a broad perspective through efforts tomeet customer needs and improve manufacturing workplaces based on the twin perspectives of quality assurance from the buyer’s point of viewand childcare, employees are entitled to take 20 days of paid leave in single-day increments from one week before the planned birth date to one day
before the child’s second birthday. In addition to parental leave, we have created an environment that makes it easier for employees to take leave.
Numbers and percentages of employees taking childcare leave (Figures for each scal year are as of December 31) * Subject: all employees excluding part-time employees

Number of employees taking
childcare leave (persons)
Percentage of employees
taking childcare leave (%)

2019

2020

2021

2022

2023

7

11

15

11

10

100.0

100.0

100.0

100.0

100.0

0

0

0

3

10

0

0

0

13.0

40.0

FemaleNumber of employees taking
childbirth and childcare leave(persons)
Percentage of employees
taking childbirth and childcare
leave (%)

Male

Revisions to bonus evaluations for employees under reemployment

and quality control from the manufacturer’s point of view.

A Quality Policy: Increasing customer satisfaction through enhanced quality
The Pack strives to improve customer satisfaction by providing safe, reliable, high quality products to customers based on effective product design,development, manufacture, sales, and services, chiefly for its core business of packaging materials. This Quality Policy represents the foundations of
our quality improvement activities and the basis of all our initiatives. In addition to meeting the requirements of laws, regulations, and other rules, we
make every effort to ensure that the entire organization is aware of the importance of satisfying customer requirements.

Our thinking on quality
The Pack pursues quality to satisfy all our customers. It takes the following three steps to ensure high product quality:• Thinking about quality first in product development and production• Striving to improve customer satisfaction and functionality while ensuring stable supply• Striving to build, maintain, and improve quality control systems
We also seek to strengthen product quality through ongoing joint efforts with manufacturing subcontractors. We investigate any quality
deviations discovered and assess their effects on product quality and the scope of such impact, as well as thoroughly investigating their causes. We
identify the underlying causes of such issues and take corrective measures to prevent their recurrence. We are currently building a structure to

The Pack has adopted a reemployment system which extends to the age of 65 years. Its evaluation system is based on the HR system adopted in

facilitate urgent reporting and immediate information sharing Companywide in response to complaints or irregularities involving products already

2020, and the bonus evaluation system was revised later, in 2023. Specifically, the system has been improved to one in which evaluations are reflected

delivered.

Quality control organization chart
A quality control organization has

The Pack performed its first employee engagement survey in December 2023. Plans call for analyzing the survey results and implementing various
measures in FY2024, including ones targeted at reducing high stress levels and making work more rewarding.

Manufacturing sections

Technology sections

human error.

Sales sections

preventing quality deviations andLogistics sections

Engagement survey

Back-office sections

supervisory division takes the lead in

Manufacturing sections

operations. The quality control

Quality control sections

rewarding work while sharing a common purpose.

Quality control
supervisory division
Quality control sections

The Pack considers its employees to be a vital asset for our businesses. We will develop an environment in which employees can grow by doing

unify quality control and improve

Quality assurance section

procurement, and sales groups to

Logistics sections

Person responsiblefor quality management

Technology sections

Person responsiblefor quality management

Back-office sections

Person responsiblefor quality management

Manufacturing sections

Person responsiblefor quality management

Quality control sections

plants and the headquarters,

Logistics sections

Top management

Technology sections

been established at four domestic

Top management

Back-office sections

Nara Plant

Top management

Sales sections

Tokyo Plant

Top management

Procurement and quality control

Improving employee engagement

Headquarters, procurement,
Osaka and Ibaraki plants
and sales groups

Back-office sections

employees under reemployment, to realize rewarding workplaces.

Sales coordination sections

more directly in bonus amounts paid, through introducing greater variation in bonus evaluations. We will continue efforts to improve treatment ofGroup data

In April 2022, we introduced our own maternity and paternity leave to make it easier for men to take paternity leave. To support a spouse’s childbirth

Quality assurance section

The Pack’s own maternity and paternity leave program

StrategyThis program allows employees whose circumstances involve responsibilities such as caring for children aged three or older, providing long-term care

Major theme

Sustainability (ESG)
initiatives

Comprehensive reduced working hours program

About The Pack

S Society

Traceability
Our plants undertake the following comprehensive management, in accordance with management rules and procedures, based on traceability:

This system was adopted as a benefit for employees in managerial positions and as an incentive toward continuous improvement in corporate value.

❶ Using traceable raw materials ❷ Recording and retaining details of individual manufacturing processes❸ Identifying conforming and nonconforming products at each manufacturing process, starting from raw materials acceptance

The aim is to increase engagement while sharing value with shareholders.

We also maintain the following systems to swiftly implement initial response, investigations, and countermeasures in the event of a quality issue:

Transfer-restricted share-based incentive system under the employee stock ownership program❶ Use of urgent reporting systems for immediate sharing of information Companywide❷ Securing advanced analytical instruments and technologies to identify causes
These management systems are part of our system for minimizing recalls by making it easy to identify the causes of any quality issues discoveredin the steps from raw materials acceptance through each manufacturing process, storage, sale, and consumption.

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ESG initiatives

Co-creation with customers and partners

Major theme

G Governance

Strengthening the management foundations

Value creation story

Proposing support for The Pack Forest® Environment Fund
Since 2000, The Pack has contributed a share of some sales of eligible products to The Pack Forest® Environment Fund to support forest conservation
In 2023, we identified Earning the support of 300 firms for The Pack Forest® Environment Fund as a materiality KPI, and through our packages weare extending the range of contributions to forest conservation activities together with supporting customers. In 2023, 123 companies supported theFund, and 65 customer personnel participated in the forest conservation activities.
We will continue striving to grow the number of supporting firms, as we co-create brand value and foster environmental awareness in society
through these activities.

Based on strong recognition of the importance of corporate governance, The Pack Corporation has established basic policies for maintaining
improving management efficiency, ensuring compliance with corporate ethics, and maintaining a structure capable of monitoring that management
activities are carried out properly while disclosing in a timely manner important information concerning shareholder interests.
As a company with an Audit and Supervisory Board, we ensure soundness and transparency in management through oversight of theMateriality

KPI

2019

2020

2021

2022

2023

2030 target

24

44

67

94

123

300

performance of the duties of the Board of Directors by independent Corporate Auditors and the Audit and Supervisory Board.
To ensure fairness, transparency, and objectivity in procedures related to the nomination of Directors and Corporate Officers and decisions on
matters such as remuneration, we have established the optional bodies of a Nomination Committee and a Remuneration Committee.
The membership of each committee consists of Directors (including Outside Directors, one of whom serves as chairperson) appointed byresolution of the Board of Directors. These committees deliberate on matters related to nomination and remuneration of Directors as advisory bodies* Only companies with actual results are counted.

to the Board.

Contributing to the development and prosperityof society as a total packaging solutions company

the exchange of opinions among Outside Directors and Outside Corporate Auditors and recommendations to the Board of Directors, thereby
enhancing Board oversight functions.

Package development to contribute solutions to social issues

General Meeting of Shareholders

ZIGQUICK™ tool developed to support assembly of thin delivery boxes

Appointment, dismissal

Group data

Major theme

Other efforts whereby we strive to enhance our corporate governance structure include the addition of a Corporate Officer system to improve
management effciency and execute business through dynamic decision-making. We have also established an Outside Officers’ Conference to allow

Appointment, dismissal

We developed the ZIGQUICK™ tool to simplify box assembly in response to growing demand for thin delivery boxes. This addresses the need for
Outside Officers’
Conference

ones made of metal or wood and can be used in safety. We also offer a variable model for which a single unit can handle thin delivery boxes ofmultiple sizes.

Cooperation

Audit andSupervisory Board

Expressing opinions,
proposal• Remarkably safe and lightweight thanks to corrugated cardboard materials
Features • A single variable model can be used to assemble boxes of multiple sizes.
• Highly cost effective

Automatic packaging system for paper delivery bags to protect the environment and save labor
Automatic packaging systemfor paper delivery bags

developed an automatic packaging system for paper delivery bags in response to
the shortage of labor in packaging facilities and to address future environmental

Accounting Auditor

can handle thin delivery boxes
Simple three-stage box assembly

Inquiries
Account
auditing

Responses, reporting
Cooperation

Sustainable Committee

Reportingbeen designed to enable automatic packaging using paper materials, which

Board of Directors

Reportingonimportantmatters

Audit OfficeBusiness auditing

Reporting, recommending
improvements,
and disposition

Conference ofBusiness Divisions
Reporting

Nomination Committee,
Remuneration Committee(optional)

Instruction and oversighton important policies and proposals

Bueiness Units andGroup Companies

Recommendations

Compliance Committee

Instruction on
policies and measures

Instruction

Investigation,
instructing improvements
Reporting, consultation

Convened for deliberationin response to individual
matters

Compliance Officer
Reporting

Cooperation

Legal Department

needs. By focusing on material structures and machinery design, this system has

Cooperation

Internal audit
Cooperation

Inquiries

Oversight

Variable modelof various sizes

Responses

Attorneys

redelivery and the labor shortfalls at packaging facilities. Made of corrugated cardboard, this tool is lighter and easier to transport than traditional

In joint efforts with machinery manufacturer Y.A.C. Machinery Co., Ltd., we have

Sustainability (ESG)
initiatives

Supporting firms (companies)*

Basic policy on corporate governance

Strategy

activities at nine planting sites across Japan. (See p. 34 for more on these activities.)

About The Pack

S SocietyCompliance guidance

C-Line Contact

Whistleblowing on
legal/regulatory violations, etc.

previously were difficult to handle in automatic packaging.
This system, which allows continuous paper packaging simply by placing the
products to be packed on a conveyor belt, controls paper use by automaticallydetecting product length and packaging the product accordingly. It affixes shippinglabels automatically.

Paper delivery bag

This packaging system meets the need for both labor savings andenvironmental protection.

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Nine members(including three fromoutside the company)

Audit andSupervisory Board

Monitoring and supervision ofbusiness execution of Directors anddecision-making processes of theBoard of Directors

Four members(including two fromoutside the company)

Outside Officers’
Conference

Information sharing and awarenessraising among the independent
Outside Officers

Three Outside Directors,
two Outside Corporate
Auditors

Contents

17 times/year

Appropriate decision-making and management supervision are
carried out based on the wealth of business experience ofInternal Directors in the Company and the objective andprofessional perspectives of Outside Directors.

13 times/year

Management soundness is ensured from the perspective offull-time Corporate Auditors based on their experience in the
Company and from the objective and professional perspectivesof Outside Corporate Auditors.

6 times/year

The exchange of information and awareness among
independent Outside Directors provides effective supervision ofmanagement from an independent and objective perspective.
With a majority of independent Outside Officers, including the
Chairperson, the Committee deliberates on proposals for theappointment and removal of Directors and the selection ofRepresentative Director and Corporate Directors. It also makes
recommendations in response to requests from the Board.

Nomination
Committee

Deliberations and recommendations
on matters related to theappointment or dismissal of
Directors and Corporate Officers

Five directors(including three fromoutside the company)

2 times/year

Remuneration
Committee

Deliberations and decision making
on matters relating to the
remuneration of Directors andCorporate Officers

Five directors(including three fromoutside the company)

4 times/year

With a majority of independent Outside Officers, including the
Chairperson, the Committee deliberates and makes decisions
concerning compensation for Directors and Corporate Officers.

The Company has appointed three Outside Directors and two Outside Corporate Auditors. All five have no personal, capital, or business relationships
with our Company and are completely independent. The independence of Outside Directors is in accordance with the requirements of theCompanies Act and the standards of the Tokyo Stock Exchange.
Based on their experience and sphere of expertise, Outside Directors contribute to increasing the efficacy of the Company’s corporate
governance through oversight from an objective, neutral point of view. Two of the three Outside Directors are qualified as certified public
accountants or tax accountants and possess specialized insights in these fields. The other offers a wealth of business experience and insights with alisted company on the Prime Market of the Tokyo Stock Exchange that operates in industries in which the Company does not operate.
Outside Corporate Auditors increase the efficacy of the Company’s corporate governance through oversight from an objective, neutral point ofview based on their experience and sphere of expertise. One of the two Outside Corporate Auditors is qualified as a certified public accountant or tax
accountant and possesses specialized insights in these fields. The other is a qualified attorney with specialized insights concerning the law.

Director skills and diversity
In light of the roles played by the Board of Directors in overseeing business operations and making important decisions, the Company deems it
essential that the Board consist of members who possess a wide range of perspectives and advanced skills, based on their diverse experiences.
Accordingly, it has established the following standards for the selection of Directors.

❶ Directors must be able to make their best efforts to achieve sustained growth and medium- to long-term increases in corporate value based on
the Group’s corporate philosophy and policies.

Corporate governance initiatives history❷ They must possess outstanding character, insights, and ethical standing befitting Directors.

The Pack is enhancing individual governance initiatives in response to the demands of the Tokyo Stock Exchange.

❹ Outside Directors must possess insights and a wealth of experience in fields such as corporate management, the law, or financial accounting and

FY

Corporate governance initiatives (selected)

Value creation story

Board of Directors

Making decisions on major
management issues andoverseeing the conduct of thebusiness

Meetings in FY2023

Strategy

Personnel composition

Sustainability (ESG)
initiatives

Role

System for oversight by Outside Officers❸ They must possess the drive and abilities needed to perform their duties as Directors with integrity.

Group data

Roles of each organization

About The Pack

G Governancemust satisfy the requirements of Outside Directors under Article 2, Paragraph 15 of the Companies Act and the independence criteria establishedby the Company.

2006

C Line (internal whistleblowing system) introduced

2010

Maximum compensation amounts revised for all Directors and all Corporate Auditors

2015

Share-based remuneration stock option plan introduced
Outside Directors system adopted

2016

Outside Officers’ Conference established

2019

Number of Internal Directors reduced (from ten to seven)

2020

Countermeasures against large-scale purchases of Company stock (takeover-bid defense measures) abolishedTransfer-restricted share-based remuneration program introduced to replace share-based remuneration stock option plan

2021

Resolution passed on policy on decisions concerning executive remuneration, etc.
Optional bodies of a Nomination Committee and Remuneration Committee established2022

Sustainable Business Team establishedElectronic voting system for shareholders and platform for electronic exercise of voting rights adopted (for exercise of voting rights via the Internet)
Declaration of partnership building (on co-existence and shared prosperity with trading partners and measures barring attempts to shift theburden of transaction terms and conditions onto partners)
English-language securities report introduced
Skills matrix published in notice of convocation for regular general meeting of shareholders
Female Director appointed; Outside Directors appointed as more than one-third of all Directors❺ Directors in executive positions (Representative Directors, the Chairperson, the President, Vice-Presidents, Executive Directors, and Managing
Directors) must be chosen from among Directors who have career histories, abilities, leadership, medium- to long-term perspectives, and highethical standing befitting representatives of the Company.

❻ They must not be disqualified from serving as Directors under laws or regulations.
Candidates for Directors are chosen from among persons who satisfy the above standards and appointed by the Board of Directors following
screening by the optional Nomination Committee.

Assessment of the efficacy of the Board of Directors
To improve the efficacy of the Board of Directors, we implement annual self-assessment surveys of all Directors and Corporate Auditors.

2023

41

Assessment
methodQuestionnaires on the efficacy of the Board of Directors are distributed to all Directors and Corporate Auditors at a Board meeting each December.
The efficacy of the Board is analyzed and assessed based on all answers collected from the completed questionnaires in a Board meeting in January of thefollowing year. Efforts to make improvements are based on these findings.

Response format

Scoring, with spaces for freeform comments

Response method

Not anonymous

Sustainable Committee establishedThe Pack Group Integrated Report 2024

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42

Executive remuneration structure

Dialogue with shareholders and investors

The Company’s executive remuneration system is intended to maintain a competitive position within the industry while improving business results,

The Pack holds briefings on financial results, meets with individual institutional investors, and engages in other activities to deepen understanding ofcontinually strengthening corporate value, sharing profits with shareholders, and reflecting job responsibilities and results.

various matters, including its business activities, management strategies, and ESG initiatives. The views of shareholders and investors gathered
through such dialogues are reflected in management with the aim of increasing corporate value.

Fixed remuneration figures are determined by considering the base compensation determined in accordance with the Director’s position andresponsibilities as remuneration for job execution. It is paid as a fixed monthly amount.

Bonuses(performance-linked
remuneration)

Bonuses serve as an incentive to improve business results and increase corporate value over the short term. They are paid based on a fixed percentage ofthe indicator of annual consolidated operating income. The Remuneration Committee determines bonuses with consideration for the contribution ofeach Director to the businesses of which he or she is in charge, and they are paid at fixed times each year. This indicator was chosen because it makes it
possible to verify objectively the results and responsibilities of the management team.

Share-based remuneration
stock options(performance-linked
remuneration)

The share-based remuneration stock options program awards share acquisition rights on Company stock to Directors as an incentive to improve businessresults and increase corporate value over the medium to long term based on shared awareness with shareholders of the risks and rewards of stock-pricefluctuations.
Only when the rate of growth in consolidated financial results (net sales and operating income) in the fiscal year in which the share acquisition rights
were allotted was at least 100% vs. the previous fiscal year may a holder of share acquisition rights exercise all share acquisition rights allotted in that fiscal
year. If the rate of growth was less than 100%, then only a portion of the share acquisition rights allotted in that fiscal year, based on the rate of growth,
may be exercised.
With the adoption of a share-based remuneration program based on transfer-restricted shares, stock options other than those already allotted have been
discontinued. New options will not be issued.

Share-based remuneration
program throughtransfer-restricted shares

The share-based remuneration program based on transfer-restricted shares is a remuneration program adopted to replace the share-based
remuneration program of stock options. The goal is to enhance value-sharing with shareholders and contribute to mid- to long-term growth in corporate
value.
Based on a resolution of the Company Board of Directors, monetary remuneration claims are paid each business year as remuneration related totransfer-restricted shares. Each Director is allotted shares of Company common share through the payment of all monetary remuneration claims as
investments in kind. Later, restrictions on the transfer of allotted shares are waived after the Director resigns.

Compliance structure
In addition to enhancing internal systems, we respond to legal issues based on consultations with outside advising attorneys as necessary inindividual cases. The Legal Department in the Corporate Division strives to enhance structures for management and education regarding matterssuch as laws, regulations, social norms, and contracts with counterparties.

C-Line (internal whistleblowing system)

Compliance training and awareness raising

We established the C-Line (Compliance Line) as a contact point forWe draw on the corporate intranet and other means towhistleblowing and consultations regarding violations of laws andcommunicate information for internal compliance training and to

regulations and similar incidents inside the Company. This system isinform employees of legal information. We also strive to provide

intended to ensure fair and sound corporate management by raisingtraining on and to raise awareness of compliance through training

awareness of compliance among all employees; preventing

and educational opportunities, including internal legal courses.

inappropriate actions, such as violations of laws and regulations; andswiftly detecting and rectifying any improprieties or problems.

Protection of personal information

The executive compensation decision-making process
A policy on determining specific compensation figures for individual
Directors was approved by a resolution of the Board of Directors at its
December 26, 2022, meeting. In accordance with this policy and the❷ Decisions on individual amounts of remuneration, etc. for Directors basedon the policy on determining the specifics of remuneration for individual
Directors and specific rules on such decisions

Directors for the business year under review. The Remuneration
Committee makes decisions on individual amounts of remuneration,etc. for Directors while verifying consistency with this policy andspecific rules on such decisions.
The Board also checks to make sure that the method of deciding
the specifics of individual remuneration, etc., and the specifics ofsuch remuneration, etc., for Directors are consistent with this policy.
The Board has determined that this remuneration does comply withthe policy.

Corporate General Manager oversees compliance managementin The Pack Group and maintains related systems. Corporate General
Manager guides the Compliance Committee toward its goals to
promote compliance at The Pack and its subsidiaries and appoints

We have established a Privacy Policy and Guidelines on theCommittee members. In addition, Corporate General Manager

Protection of Personal Information, which concern matters including

maintains rules and implements periodic training on various topics

why and how we use personal information and how personal

to raise awareness of such topics among all related parties. These

information is managed and safeguarded.

topics include harassment, mental health, and information security.

Remuneration Committee

rules governing it, the Board delegated to the Remuneration
Committee decisions on individual amounts of remuneration, etc. for

Strategy

Fixed remuneration

Sustainability (ESG)
initiatives

Details

Group data

Remuneration system

Value creation story

About The Pack

G Governance❶ Delegation of decisions on
individual amounts ofremuneration, etc. for
Directors based on thepolicy on determining thespecifics of remuneration
for individual Directors❸ Reporting the specifics ofdecisions on individual
amounts ofremuneration, etc. for
Directors

Board of Directors❹ Checking to make sure that the method of deciding the specifics ofindividual remuneration, etc. for Directors and the specifics of such
remuneration, etc. are consistent and comply with the policy
For details, refer to the Securities Report or the Corporate Governance Report.

Risk management structure
We strive to maintain a systematic risk management structure to respond to risks in various areas, such as business, management, markets, and credit(including risk prevention), and to accurately ascertain, analyze, and address risks such as human risks, natural disasters, and both internal and externalrisks.
In the sphere of legal and regulatory compliance, we have established The Pack Group Code of Conduct to set forth principles to serve as
standards for actions and judgments with which executives and employees of Group companies must comply.

Policy, verification, and exercise of voting rights concerning cross-shareholdings
The Company’s basic policy is to avoid cross-shareholdings except when they contribute to sustained business growth and strengthen transaction
relationships through joint efforts with the issuer company. The Board of Directors reviews the propriety of individual holdings in detail on a quarterly

https://www.thepack.co.jp/en/company/codeofconduct.html

Internal controls

basis and strives to reduce shareholdings if they are judged not to comply with this policy based on consideration of perspectives such as the

Pursuant to the Companies Act and the Enforcement Regulations to the Companies Act of Japan, we maintain the internal controls systems needed

economic value and capital cost of each issue, strategic relations, and importance.

for efficient management by securing the propriety of business operations and pursuing business appropriately within the Company and at Group

Voting rights on cross-shareholdings are exercised appropriately based on a close examination of the specifics of resolutions to determine
whether they would contribute to increased shareholder value. In principle, we exercise voting rights properly on all resolutions.

43

Code of Conduct

The Pack Group Integrated Report 2024

member companies.

Basic Policy on Internal Controls
https://www.thepack.co.jp/en/company/basicpolicyoninternalcontrols.html

The Pack Group Integrated Report 202444

as part of important materiality topics. Touched on below are the related internal systems and efforts to promote supply chain risk management.

1 Recognition of external risks① Political risks

Hideaki Yamashita③ Environmental risks• Interruption or rising cost of imports of raw materials due
to disputes or national security policies• Supply chain interruptions or suspension of production associated withmore frequent natural disasters• Rising procurement costs due to climate-induced changes in forestry
resources• Rising tax burdens due to the introduction of carbon taxation, etc.

② Raw material procurement risks• Rising cost of raw materials, manufacturing, or shipping• Rising cost of hedging in raw materials procurement④ Legal risks• Rising cost of responding to legal, regulatory, and litigation risks

Impacts on the value chain
Planning and proposal

Product Development

Procurement, production

Quality control

Shipping, delivery①②③③ Carbon tax / ④

2 Identification of materiality topics
Strengthening the supply chain to be ready for various risks in procurement, production, and sales

3 Company initiatives
Strengthening the supply chain• Information sharing on and effective joint use of suppliers with Group companies in China and the United States• Enhancing supply capabilities in accordance with demand forecasts (surveying, technical guidance, and periodic quality patrolling of partner firms
in Japan and overseas)

Norio Ashida

Career history
April 1986
Joined the Company
January 2011 General Manager, Tokyo Sales Division No. 4
January 2015 Corporate Officer
January 2019 Managing Corporate Officer
January 2019 Divisional General Manager, Eastern Japan
Sales Division
January 2019 Managing Director (to present)
March 2020 Deputy Divisional General Manager, Sales
Division (to present)
March 2024 Divisional General Manager, Sales Division(to present)

Career history
April 1984
Joined the Company
January 2016 General Manager, Section 2 of Tokyo Sales
Division No. 2
January 2019 Managing Director, Kannaru Printing Co.,Ltd.
March 2020 President and CEO, Kannaru Printing Co., Ltd
February 2022 Director, the Company (to present)
March 2022 Deputy Divisional General Manager,
Production Division (to present)
January 2023 In charge of Quality Management Control
Dept. (to present)
Haruyasu ItoMarch 2024 General Manager, Nara Production Division(to present)
Director
Deputy Divisional General Manager,
Production Division

Naoki Nakamura

Responding to cyber risks• Reducing system downtime by updating the internal backbone system

Ikuo Shimomura

Hirofumi Hayashi

Uichiro Nishio
Outside Director

Kaoru Kasahara

Outside Director

Career history
April 1989
Joined the Company
January 2009 General Manager, Department No. 3,
Tokyo Sales Division No. 3
January 2016 General Manager, Tokyo Sales Division
No. 2
January 2021 Corporate Officer
January 2023 Deputy Divisional General Manager,
Corporate Division
March 2024 Director (to present)
March 2024 Corporate General Manager (topresent)

Director
Corporate General Manager

Outside Director

Career history
March 1989 Joined Pigeon Corporation
February 2010 President and COO, Pigeonwill Corporation
February 2014 Corporate officer and Deputy Division
Manager, Domestic Baby & Mother Care
Business Division, Pigeon Corporation
February 2015 Corporate officer and Division Manager,
Research and Development Division, Pigeon
Corporation
February 2019 Director, Pigeon Manufacturing Ibaraki
Corporation
March 2022 Director, the Company (to present)
April 2023
Outside Independent Director, Morozoff Ltd.
(to present)

Career history
April 1989
Joined the Company
January 2008 General Manager, Department No. 3,
Tokyo Sales Division No. 1
January 2013 General Manager, Chugoku-Shikoku
Sales Division
January 2017 Corporate Officer
January 2019 Managing Corporate Officer
January 2019 General Manager, Western Japan Sales
Division (to present)
January 2021 General Manager, Kyushu Sales Division
March 2024 Managing Director (to present)

Managing Director
General Manager,
Western Japan Sales Division

Career history
October 1991 Joined Century Audit Corporation
August 1995 Registered as certified public accountant
January 2001 Established Hayashi CPA and Tax Accountant
Office (to present)
March 2001 Registered as a certified tax accountant
February 2010 Outside Corporate Auditor, Kawakami Paint
Manufacturing Co., Ltd.
March 2014 Corporate Auditor, the Company
March 2015
Director (to present)

Strengthening resilience

The Pack Group Integrated Report 2024

Vice President
Divisional General Manager,
Production Division

Managing Director
Deputy Divisional General Manager, Sales Division
Divisional General Manager, Packaging Products Market Division• Japan: Leveraging the strengths of our main plants in eastern (Saitama Prefecture) and western (Osaka Prefecture) Japan. Enhancing the strengthsof the Osaka Plant through reconstruction.
• Overseas: Building supply chains across multiple countries to avoid geopolitical risks

45

Teruo Takinoue

President and CEO

Value creation story

unpredictability. We recognize external risks that threaten supply chain continuity and their impacts on the value chain and we consider such matters

Career history
April 1984
Joined the Company
January 2008 General Manager, Osaka Production
Division
March 2011
Director
January 2012 Deputy Divisional General Manager,
Production Division
April 2014
Divisional General Manager, Packaging
Products Division
March 2015
Managing Director
January 2017 Divisional General Manager, Production
Division (to present)
March 2018 Senior Managing Director
March 2022 Vice President (to present)

Strategy

Career history
April 1982
Joined the Company
January 2008 General Manager, Tokyo Sales Division No. 2
January 2011 Corporate Officer
March 2013
Director
January 2016 Divisional General Manager, Eastern Japan
Sales Division
March 2017Managing Director
January 2019 Senior Managing Director
January 2019 Divisional General Manager, Sales Division
March 2022 President and CEO (to present)

The Pack recognizes the importance of maintaining the continuity of production lines and supply chains in the face of uncertainty andSustainability (ESG)
initiatives

List of executives (as of March 28, 2024)

Group data

Promoting supply chain risk management

About The Pack

G Governance

Career history
March 1982 Registered as certified public
accountant
December 1983 Registered as certified tax accountant
July 1999
Representative Partner, Seiwa Audit &Accounting Firm
July 2002
Representative Partner, Deloitte Touche
Tohmatsu LLC
April 2005
Professor, Institute of Business andAccounting, Professional Graduate
School, Kwansei Gakuin University (topresent)
March 2015
Corporate Auditor, the Company
June 2015
Outside Corporate Auditor, Araya
Industrial Co., Ltd. (to present)
June 2016
Outside Corporate Auditor, KMEW Co.,
Ltd. (to present)
March 2018 Director (to present)

The Pack Group Integrated Report 2024

46

Standing Corporate Auditor

Standing Corporate Auditor

Shinji Noda

Yasuhiro Takagi
Career history
April 1983
Joined Nisshin Audit Corporation
March 1986 Registered as certified public
accountant
November 1989 Registered as certified tax accountant
May 1992
Established Iwase CPA Office (topresent)
March 2018 Corporate Auditor, the Company (topresent)

Outside Corporate Auditor

Outside Corporate Auditor

Hisayoshi Tamakoshi

Norimasa Iwase

Skills matrix
  

Name

Current post

Hideaki Yamashita

President and CEO

M●

Teruo TakinoueVice President

M●

Norio Ashida

Managing Director

M

●

●

Naoki Nakamura

Managing Director

M

●

●

Haruyasu Ito

Director

M●●

Ikuo Shimomura

Director

M●●

Hirofumi Hayashi

Outside Director

●

M

●

●

Uichiro Nishio

Outside Director

●

M

●

Kaoru Kasahara

Outside Director●

F

●





   ●●●  



 

FY2021

FY2022

FY2023

t-CO2

5,067

5,041

5,043

5,046

5,118



t-CO2

10,445

9,873

9,851

10,353

11,638

t-CO2

–

–

611,310

676,931

693,899

g-CO2/yen

1.80

1.99

2.02

2.08

1.68

    MWh25,50323,644

24,232

26,543

26,739  

Km

3

1,952

1,978

1,998

1,978

2,010

 

t

4.9

4.8

7.3

12.7

13.0

               kL

205

179

177

172

170

1.224/340.029

1.128/313.304

1.107/307.426

1.001/278.144

1.082/300.616

    

TJ/kWh
Km

3

96

74

79

69

74

   

t18,591

17,653

18,407

17,973

17,461  t18,52817,592

18,344

17,913

17,144   

%

99.7

99.7

99.7

99.7

98.2

    ­   

Million yen

1,516

1,276

1,606

2,105

2,574

  ­®    

Million yen

2,884

4,851

6,630

9,421

12,155    

Persons

160

0

0

111

253

      

Times

4

0

0

4

9

Social data

Unit

FY2019FY2020

FY2021

FY2022

FY2023­   

Persons

892

881

841

835

840

­   

Persons

171

176

167

171

181

%

19.2

20.0

19.9

20.5

21.5

●

  ●●   

Persons

213

208

206

209

206

    

Persons

7

11

10

14

13

     

%

3.3

5.3

4.9

6.7

6.3

  

%

73.6

73.9

71.0

74.7

75.1

●
●

    ●      

%

1.9

1.8

1.8

1.6

2.1

●

●

      

%

50.3

57.3

46.0

58.3

56.5

●

●

●

             %

98.9

100.0

100.0

100.0

100.0

●

●

●

%

97.0

97.2

97.4

96.9

96.0

Persons

9

10

9

23

21

Persons

4

7

10

9

13

Persons

0

0

0

3

10

%

0

0

0

13.0

40.0

●
●

●

●

●

●

       
   
          
    Definition of each category               Persons

7

11

15

11

10

            

Persons

266

541

267

431

309

 

   
    *1 As of March 31 *2 During the examination period of April 1 through March 31 of the following year   ­ 

 

        
 

    

Governance data

Unit

FY2019FY2020

FY2021

FY2022

FY2023 

            
  

Number of Directors

Persons

9

9

9

9

9

     

Number of Outside Directors

Persons

2

2

2

3

3

  Percentage of Outside Directors

%

22.2

22.2

22.2

33.3

33.3

   
 

47

       

Value creation story

FY2020●●●FY2019    Career history
April 1992
Registered as attorney-at-law
August 1998 Established Tamakoshi Law Firm (to present)
June 2013
Outside Corporate Auditor, Tomoshia
Holdings Co., Ltd. (to present)
March 2015
Corporate Auditor, the Company (to present) 
 Unit

Strategy

Career history
April 1987
Joined the Company
January 2010 General Manager, Tokyo Purchasing
Department, Purchasing Division
January 2012 General Manager, Purchasing
Administration Department, Purchasing
DivisionJanuary 2016 General Manager, Purchasing Division
March 2024 Standing Corporate Auditor (to present)

Environmental data

Sustainability (ESG)
initiatives

Career history
April 1983
Joined the Company
January 2017 Department Manager, Legal Dept.
March 2018 Standing Corporate Auditor (to present)

About The Pack

ESG data

Group data

G Governance

The Pack Group Integrated Report 2024

The Pack Group Integrated Report 202448

About The Pack

Financial highlights

Unit

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

Net sales

Million yen

85,80988,04389,17490,313

93,126

95,50278,44579,69089,06097,714

Operating profit

Million yen

5,478

6,232

6,484

7,273

6,924

6,850

3,275

4,144

5,972

7,743

Ordinary profit

Million yen

5,703

6,468

6,825

7,589

7,212

7,199

3,606

4,422

6,353

8,063

Profit attributable to owners of parent

Million yen

4,322

4,067

4,540

5,209

4,968

4,700

2,392

2,824

4,058

5,652

Return on equity (ROE)

%

10.5

9.2

9.7

10.2

9.0

8.2

4.1

4.6

6.4

8.3

Return on invested capital (ROIC)

%

7.7

8.9

9.0

9.4

8.4

8.2

3.8

4.7

6.4

7.6

Total assets

Million yen

70,304

73,142

76,291

81,92886,49588,446

83,55687,422

94,36598,847

Net assets

Million yen

42,92645,412

48,60353,45756,77558,49559,73962,03265,371

71,156

Capital adequacy ratio

%

61.0

62.0

63.6

65.1

65.4

66.0

71.4

70.9

69.2

71.9

Capital adequacy ratio based on market price

%

64.8

81.7

67.1

87.2

69.1

84.7

64.3

58.6

48.6

65.2

Interest-bearing debt

Million yen

0

0

0

0

315

79

30

85

60

34

Capital investment

Million yen

1,577

1,657

1,124

1,543

1,218

1,933

3,748

2,637

3,605

7,406

Depreciation

Million yen

1,852

1,777

1,784

1,645

1,761

1,713

1,850

2,029

1,992

2,082

Cash flows from operating activities

Million yen

4,930

4,882

6,597

6,873

6,742

6,599

3,155

7,217

5,380

4,443

Cash flows from investing activities

Million yen-2,599-2,840-4,144452-4,705-4,136-5,013-3,460-3,762-3,962

Cash flows from financing activities

Million yen-1,797-1,744-995-992-2,059-3,319-1,214-1,029-1,124-1,407

Cash and cash equivalents at end of period

Million yen

11,145

11,451

12,90019,22819,181

18,307

15,22418,067

18,653

17,812

%

0.0

0.0

0.0

0.0

0.1

0.0

0.1

0.0

0.0

0.0

Times

561.9

5,259.7

7,883.0

8,274.9833.2

2,257.9

2,570.0

5,405.8

2,935.1

4,273.4

Net assets per share (BPS)yen

2,156.41

2,312.73

2,474.25

2,720.34

2,885.27

3,076.27

3,141.09

3,261.64

3,436.46

3,736.44

Basic earnings per share (EPS)yen

217.26205.94231.47265.56253.25243.89126.01148.71

213.55297.07

Dividends per share

yen

50.00

50.00

50.00

50.00

50.00

55.00

60.00

50.00

65.00

90.00

Interest-bearing debt to flow ratio
Interest coverage ratio

Strategy
Sustainability (ESG)
initiatives

Cash flow

Group data

Financial standing

Value creation story

Business results

Per-share information

Trends in net sales and operating income
Net sales (left axis)

Trends in cash flows

Operating income (right axis)(Unit: ¥ million)
100,000

10,00080,0008,000

Trends in ROE and ROIC

Cash flows from operating activities

Cash flows from investing activities

Cash flows from financing activities

Free cash flow

ROE

(Unit: ¥ million)

(%)

8,000

12.0

6,000

*1 Cash flow indicators are calculated as follows using consolidated figures:*1 Capital adequacy ratio: Owner’s equity/Total assets*2 Capital adequacy ratio based on market prices: Market capitalization/Total assets*3 Interest-bearing debt to cash flow ratio: Interest-bearing debt/Operating cash flows*4 Interest coverage ratio: Operating cash flows/Interest payments*2 Market capitalization is calculated by multiplying the closing share price at the end of
the period by the number of issued and outstanding shares at the end of the fiscal year,
net of treasury shares.
*3 Interest-bearing debt includes all liabilities on the consolidated balance sheet incurringinterest.
*4 Operating cash flows and interest payments, respectively, are taken from “Cash flows
from operating activities” and “Interest expenses paid” on the consolidated statement ofcash flows.

ROIC

10.0

4,000
8.0
60,000

6,000

2,000
6.0

40,000

4,000

0
4.0
-2,00020,0002,000

2.0-4,000049

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

The Pack Group Integrated Report 2024

0-6,000

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

0.0

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

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50

Share information

Name

The Pack Corporation

Listed exchangeTokyo Stock Exchange Prime Market

Representative

Hideaki Yamashita, President and CEO

Securities code

3950

Address

Headquarters: 9-3, 2-chome, Higashiobase, Higashinari-ku, Osaka-shi, Osaka 537-8911, Japan

Total authorized shares

77,000,000

Founded

1878

Total shares issued and outstanding

19,900,000 (including 868,136 shares of treasury stock)

Incorporated

May 10, 1952

Shareholders

14,586

Capital2,553,505,600 yen

Basis date

December 31

Number of employees

1,183 (consolidated), 840 (nonconsolidated)

Trading unit

100 sharesLines of business

Planning, manufacturing, and sale of paper bags, paper cartons, corrugated boxes, film packaging, etc.

Individuals, others

Financial institutions

29.5%

Facilities and Group companies

Sustainability (ESG)
initiatives

Distribution of owners

Strategy

Company overview

Value creation story

About The Pack

Company overview, share information (As of December 31, 2023)

26.9%

The Pack Corporation Headquarters, Tokyo Head OfficeGroup company

19,900,000 shares

Japan
Foreign corporations, etc.

12.4%Group data

Total authorized shares

Financial
instruments
brokers

1.3%

Other corporations

29.9%

Major shareholders
Shares held
(thousand)

Percentage ofshares held (%)

Morita Kinen Fukushizaidan

2,081

10.94

The Master Trust Bank of Japan, Ltd. (Trust Account)

1,523

8.00

BBH for Fidelity Low-Priced Stock Fund (Principal All Sector Subportfolio)

1,258

6.61

The Pack Trading Partners Stock Ownership Plan

1,248

6.56

Custody Bank of Japan, Ltd. (Trust Account)

901

4.73

Custody Bank of Japan, Ltd. (Trust Account 4)

876

4.60

The Pack (Changshu)
Co., Ltd.

Custody Bank of Japan, Ltd. (re-entrusted by Resona Bank; Hokuetsu Corporation retirement benefits trust account)

622

3.27

The Pack (Shanghai) Corp.

Daio Paper Corporation

573

3.01

MUFG Bank, Ltd.

494

2.60

Shichijo Paper Trading Co., Ltd.

474

2.49

10,055

52.84

Shareholder name

The Pack Corporation
Tokyo Head OfficeInternational

Pack Takeyama Co., Ltd.
Kannaru Printing Co., Ltd.

Keihin Tokushu Printing
The Pack Corporation Corporation
Headquarters
Nikko Print Corporation

The Pack America
Corporation

Nishinihon Printing Co., Ltd.

Total

*1 Numbers of shares are rounded to the nearest thousand.
*2 Despite holding 868,136 shares of treasury stock, the Company is not included among the major shareholders above. Calculations of percentages of shares held exclude treasury shares.

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The Pack Group Integrated Report 2024

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