THE PACK CORPORATION

Briefing Materials on
Business Results for the Year
Ended December 31, 2023

February 29, 2024

Contents

Topics

P. 2

1. Business Results for the Year Ended
December 31, 2023

P. 3

2. Forecasts of Business Results
for the Year Ending December 31,
2024

P. 17

3. Promotion of Sustainable
Management

P. 21

4. Progress on the Medium-Term
Management Plan

P. 25

5. Reference Materials

P. 34

Copyright© 2024 The Pack Corporation. All Rights Reserved.

1

Topics
 Demand for dining and accommodations grew as COVID-19 restrictions were
relaxed. Despite an economic recovery driven by factors including recovering
inbound tourism demand and rising wages, the lingering effects of high energy
prices and exchange rate fluctuations appear to be spurring inflation, and thefuture outlook remains uncertain.
 The Pack Group recorded record highs In net sales, operating profit, ordinary
profit, and profit attributable to owners of parent. Sales volumes grew, centeredon packages for food products, thanks to proposals of environmentally conscious
high value added products and solutions and sales expansion efforts.
Additionally, prices were revised to reflect the rising cost of raw materials.
 Dividends grew by 25 yen YoY. The Company paid 90 yen in dividends vs. an
initial forecast of 70 yen.
 In addition to upward revisions of FY2024 and FY2025 targets under the current
Medium-Term Management Plan, the shareholder returns policy was revised tomaintain a dividend payout ratio of 35% or higher, to purchase up to 1.0 billion
yen in treasury stock per year, and to target a total payout ratio of 50%.
 We established a Sustainability Committee and are currently promoting various
sustainability management efforts.
Copyright© 2024 The Pack Corporation. All Rights Reserved.

2

1. Business Results for the Year Ended
December 31, 2023

3

Summary of Business Results
Record highs in net sales, operating profit, ordinary profit, and profit attributable to owners of parent(Million yen)

Year ended December
31, 2022

Year ended December 31, 2023

ActualActualYoY change

Net sales

89,06097,714

9.7%

Operating profit

5,972

7,743

29.7%

Ordinary profit

6,353

8,063

26.9%

Profit attributable toowners of parent

4,058

5,652

39.3%

Basic earnings per share(yen)

213.55297.07

39.1%

Dividend per share (yen)

65.00

90.00

38.5%

 Consumer spending recovered as demand related to souvenirs, domestic tourism, and inbound tourism grew following therelaxation of various restrictions.
 Offsetting growing costs, operating profits recorded significant growth thanks to higher average sale prices, which reflected the
proposal of various high value added products and efforts to optimize prices. Paper bags and paper cartons in particular drove
growth in both sales and profits.
Copyright© 2024 The Pack Corporation. All Rights Reserved.

4

Factors Underlying Changes in Operating Profit
Operating profit grew due to growing sales volumes and rising average sale prices.
(Million yen)

Year ended
December 31,
2022
Operatingprofit5,972

Increased
sales
volumes

Higheraverage salepricesHigher raw
material
costs+1,358+3,747-1,141Higher other Higher labor
manufacturcosts
ing expenses-383-1,085Higherlogistics
costs

-312

Higher other Year ended
selling, general December 31,
and2023
administrative
Operatingexpenses-413

profit7,743

 Sales volume grew due to recovering consumer spending, centered on paper cartons (up 5.5%).
 Average sale prices rose due to efforts to optimize prices and to proposal-based sales for high value added products (paper bags
up 11.0%, paper cartons up 6.5%, corrugated boxes up 12.5%, plastic bags up 14.8%).
 Materials costs rose, due mainly to soring raw material costs.
 Labor costs rose due to expanded hiring and to wage hikes averaging 5.01%.
 Other SG&A expenses rose due to various factors, including costs associated with building a new headquarters building andexpenses accompanying an upgrade of the backbone computer system.
Copyright© 2024 The Pack Corporation. All Rights Reserved.

5

Results by Segment(Million yen)

Year ended December 31, 2022
Net sales
Paper
Products
Paper bags
Papercartons
Corrugatedboxes
Printing
Film
Packaging
OthersOperating profit
Paper
Products
Film
Packaging
OthersAdjustments

Year ended December 31, 2023

ActualShare

ActualShare

YoY change

89,060100.0%

97,714100.0%

9.7%

62,932

70.7%

69,399

71.0%

10.3%

26,25229.5%

29,653

30.3%

13.0%

22,28325.0%

25,000

25.6%

12.2%

12,21013.7%

12,419

12.7%

1.7%

2,186

2.5%

2,325

2.4%

6.4%

11,988

13.4%

13,798

14.1%

15.1%

14,1385,972

15.9%
100.0%

14,516
7,743

14.9%
100.0%

2.7%
29.7%

5,333

89.3%

6,858

88.6%

28.6%

583

9.8%

856

11.1%

46.7%

1,059
-1,00417.7%-16.8%

1,267-1,23916.4%-16.0%

19.7%-

 The Paper Products Business recorded sales and profits growth thanks to strong sales of packages for food products andrecovering consumer spending and tourism demand.
 Positive sales performance continued in the Film Packaging Business for external packages for disposable diapers and for film
packaging for food products.
 Other businesses saw strong sales of eco bags of cotton, nonwoven, and other materials and gift-wrapping materials.
Copyright© 2024 The Pack Corporation. All Rights Reserved.

6

Trends by Segment
Record-high sales and operating profit for paper products
Net sales(Paper Products Business)

Net sales(Film Packaging Business)

Net sales(other businesses)

6,850

5,972

80,00019,66660,00089,06078,44579,69013,57413,00813,484

14,13820,0000Year ended December
31, 2019

6,000

97,7142,000

14,516

0

13,798

11,988

11,18440,00060,353

8,000

7,743

4,000

95,502
15,483(Million yen)

4,144

3,275
100,000

Operating profit

51,38655,498Year ended December
31, 2020

Year ended December
31, 2021

62,932

Year ended December
31, 2022

Copyright© 2024 The Pack Corporation. All Rights Reserved.

69,399Year ended December
31, 2023
7

Sales Composition
Net sales by business
1.0

0.4

2.8

(%)

Year ended
December 31,
2022

27.1

16.5

5.0

6.1

4.9

2.13.3 3.4

27.5

Year ended
December 31,
2023

28.1

16.6

5.0

5.6

4.9

2.03.0 3.8

26.6

Food products

ApparelDepartment stores

Supermarkets and drug stores

Year ended December 31,
2022

Convenience stores

Pharmaceuticals and cosmetics

Share

ActualShare

Food products

24,14927.1%

27,43828.1%

Apparel

14,70916.5%

16,187

16.6%

Department stores

4,449

5.0%

4,910

5.0%

Supermarkets and drug
stores

5,390

6.1%

5,502

5.6%

Convenience stores

890

1.0%

1,184

1.2%

Pharmaceuticals andcosmetics

4,331

4.9%

4,743

4.9%

e-commerce *

2,520

2.8%

2,834

2.9%

Sundries

1,859

2.1%

1,939

2.0%

Home electronics andhome installations

2,982

3.3%

2,888

3.0%

Life care

2,985

3.4%

3,744

3.8%

Automotive

327

0.4%

330

0.3%

24,461

27.5%

26,014

26.6%

Other

2.9
Sundries

0.3Home electronics and home installations

Life care

Automotive

Other In the food products segment, recovering consumer
spending spurred sales growth to the souvenir market
YoY change
and for delivery and takeout foods.
 The relaxation of various restrictions helped drive a
13.6%
recovery in sales related to apparel packaging for
10.0%
brick-and-mortar stores.
Department store sales remained firm as consumer
10.3%
spending and inbound demand recovered.
2.1%
 Sales to the convenience store segment increased;
our market share grew with expanded production
33.0%
capacity, while we received new orders related to
9.5%
proposals for paper package solutions leveraging ourdesign capabilities.
12.5%
 Sales to the pharmaceuticals and cosmetics segment
grew with recovering consumer spending and
4.3%
inbound demand.
-3.2%
 The e-commerce sector showed positive sales
performance due to new orders for corrugated boxes,
25.4%
paper delivery bags, and other delivery packaging.
0.7%
 In the life care segment, sales grew sharply forexternal packages for disposable diapers.
6.3%

Year ended December 31, 2023

Actual(Million yen)

1.2
e-commerce* e-commerce refers to the e-commerce platform segment. e-commerce sales on vendor sites are counted as part of their individual business segments.
Copyright© 2024 The Pack Corporation. All Rights Reserved.

8

Paper Products Segment
Trends in net sales and operating profits

Industry environment Department store sales were up for the 22nd consecutive
month, including double-digit YoY growth for accessories,
sundries, and cosmetics, centered on luxury brands. Demand
was strong for snacks as gifts.
(Source: Japan Department Store Association)

 Domestic travel consumption in Japan returned to near preCOVID levels. The number of visitors from overseas is also
recovering.
- 2023 domestic travel consumption in Japan (preliminary figure)
July-September: 6,289,900,000,000 yen (down 6.0% vs. 2019, up 15.7% YoY)
(Source: Japan Tourism Agency, Ministry of Land, Infrastructure, Transport
and Tourism, “Travel and Tourism Consumption Trend Survey”)

 Enhancing manufacturing capacity through investments inmachinery and equipment and improved productivity
 Aggressive proposals of eco-friendly materials and processing
methods

Trends in operating profit margins
10.0%

Paper Products Business
Other businesses

Film Packaging Business

7.1%

6.0%

6.1%
5.5%

4.0%

3.8%

Paper Products
Business,9.9%

6.8%

7.5%
4.9%

Other
businesses,8.7%
Film Packaging
Business,6.2%

3.6%

2.0%
FY20/1269,39970,000FY21/1260,00012,00055,49851,38650,00010,00040,0006,858

20,000

3,958

3,124

8,000
6,000

5,333

4,000

10,0002,000

0FY20/12

2,000
1,500

FY21/12

FY22/120

FY23/12

FY23/12Paper bags
1,349
1,153

Paper cartons
1,464
1,259

Corrugated boxes(Million yen)

1,646

1,618
1,243

1,311

1,000
500
0

FY22/1214,00062,932

Trends in sales volume by product

8.5%

8.0%

(Million yen)

Operating profit (right axis)

30,000Initiatives

12.0%

Net sales (left axis)

90

96

91

82

FY20/12

FY21/12

FY22/12

FY23/12

Copyright© 2024 The Pack Corporation. All Rights Reserved.

9

Paper Products Segment (Paper Bags)
Industry environment

Trends in operating profit margins

 Recovering demand for takeout paper cartons in response to
growing brick-and-mortar store consumption and resumption ofvarious events
 Growing demand for paper bags for high-end items to reflecttastes and preferences Growing demand for paper totes related to growing
environmental awareness Continued diversification of packaging forms in response to theneed within the e-commerce market to improve transport
efficiency

Initiatives
 Stable supplies through enhancement of manufacturing
capacity at our plants and strengthening supply chains Strengthening proposals for high value added products
centering on eco-friendly products
 Focusing on development and sales expansion of paperdelivery bags to improve efficiency in transport and operations

Examples of developed products

Net sales (left axis)

Operating profit (right axis)

29,65330,000(Million yen)

6,000

26,25225,00021,471

5,000

22,032
3,889

20,0003,019

15,00010,000

1,713

4,000
3,000

2,092

2,000

5,000

1,000
0

0

FY20/12
FY21/12
FY22/12
FY23/12
Sales volume of FSC®-certified paper bags and their share of all
paper bag sales(Million bags)

150

(%)

Sales volume

Share of sales

30

100

20

50

10

Delivery bag + automatic packaging machine= delivery bag automatic packaging system▲ Mixed paper withused clothes0▲ Paper delivery bag compatible with
FY20/12
FY21/12
automatic packaging machines
Copyright© 2024 The Pack Corporation. All Rights Reserved.

FY22/12

FY23/120
10

Paper Products Segment (Paper Cartons)
Trends in operating profit margins

Industry environment Growing demand for paper cartons in markets for souvenirs
and food products due to recovering consumption
 Growing demand for high value added paper cartons for
nonrecurring events and other uses and in response to
growing demand for gift packaging
 Growing demand for outsourcing and reducing manual labor
amid labor shortages
 Growing demand for paper containers related to increasing
environmental awarenessNet sales (left axis)

25,00025,00022,283
19,49720,000(Million yen)

5,000
4,000

17,237
15,000

3,000
2,221

Initiatives
 Strengthening capital investment and new productdevelopment initiatives to bolster sales of primary paper
containers for food products
 Focusing on bundled solutions combining services to help
customers adapt to labor shortages in aspects such as paper
carton assembly and product packing work, in addition to
package sales
 Developing processing methods to realize plastic-freepackaging with low environmental impact

Examples of developed products

10,000
5,000
0

2,000

1,574
1,079

864

FY20/121,000

FY21/12

FY22/12

FY23/120Trends in paper carton sales to the food products market
15,00010,000Paper alternative toplastic trays
featuring special
structure to maintaintray shape

Operating profit (right axis)

10,373

11,419FY20/12

FY21/12

13,033

14,998(Million yen)

5,000
Molded tray
packages withpaper lids0

Copyright© 2024 The Pack Corporation. All Rights Reserved.

FY22/12

FY23/1211

Paper Products Segment (Corrugated Boxes)
Trends in operating profit margins

Industry environment Declining corrugated box demand due to slowing purchases ofmajor home appliances, etc. in response to higher prices andlower exports from Japan as the US and China adopt
protectionist policies
Production in the corrugated box industry in JanuaryNovember 2023 was down 3.1% YoY overall and 6.3% forelectrical and mechanical machinery.
(Source: Japan Corrugated Case Association, Corrugated Box Statistics)

15,000Net sales (left axis)

Operating profit (right axis)

11,85012,210(Million yen)

3,000

12,41910,625
10,0002,000

 Growing demand for proposals of solutions to reduce labor
requirements in packing workplaces and improve transport
efficiency with growth in e-commerce market

5,000

Initiatives
 Enhancing the development and proposal of thin delivery
boxes that fit inside mailboxes, to improve delivery efficiency
 Focusing on the proposal and sale of reinforced corrugatedboxes and corrugated cushioning materials that draw on ourdesign capabilities
 Enhancing proposals of high value added products using
precision flexographic printers▲ Extra-large corrugated boxes—among thelargest corrugated products in Japan▲ All-paper cushioned CC-PACK® cushioned
packages featuring flexibility and cushioning
achieved by a special material structure

678

607

FY21/12

FY22/12

FY23/12451
0FY20/12

1,000

711

▲ Corrugated pads created by applying
our design capabilities, to replace
plastic cushioning materials

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0▲Corrugated delivery boxes madeusing high-precision flexographic
printers

12Film Packaging Segment
Trends in operating profit margins

Industry environment Growing demand for proposals for and development of ecofriendly packages using thinner films, recycled materials,
biomass materials, etc.
 Progressive trend toward paper film packaging to reduce
plastic use in the food products market in response to rising
environmental awareness(Million yen)

2,000

20,000Net sales (left axis)

15,00011,1840856

FY20/12500

397

FY21/12

FY22/12

FY23/12▲ ecoKARA Series film made using egg shells▲ Fully filmless paper-based flexible
packaging with barrier function

3,704

3,564
2,982 2,930

0Trends in sales of film packaging(Million yen)

(Million yen)

4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0

1,000

583

511

Trends in sales of external
packages for disposable diapers

Examples of developed products

11,98810,000

5,000

1,500

13,79813,484

Initiatives
 Providing attractive packaging using the latest eco-friendly
high-precision flexographic printers Leveraging our proprietary processing technologies andaccumulated expertise to enhance proposals for the life careand pet supplies markets
 Focusing on developing and expanding sales of paper film
packaging using paper as a base material 112.5% YoY growth in sales in 2023

Operating profit (right axis)

2,500

1,830

2,000
1,500

1,982

1,144 1,371

1,000
500
FY20/12 FY21/12 FY22/12 FY23/12

Copyright© 2024 The Pack Corporation. All Rights Reserved.

0

FY20/12 FY21/12 FY22/12 FY23/12

13

Other Businesses
Industry environment

Trends in operating profit margins

 Renewal of gift wrapping materials is underway in response torecovering consumption at brick-and-mortar stores Growing introduction of reusable and post-usable sewn
packages (eco bags and gift wrapping) in response to rising
environmental awareness Recovering demand for supplies and office materials at
department stores in response to recovering department store
sales(Million yen)

20,00015,00013,57413,0084,000

Operating profit (right axis)

14,13814,516

10,000Initiatives
 Enhancing proposals of sewn products with low environmental
impact using recycled or natural materials

5,000 Improving logistics efficiency in the Pack Assortment Service
System (PAS) for department stores and specialty retailers

0

Examples of sewn eco-friendly products▲ Recycled Tetron Cotton, a material
produced by recycling factory scraps ofcotton, polyester, and other fabrics

Net sales (left axis)▲ Center: Gift packaging material made of sewn kraft
paper that is both highly durable and washable
Right: Gift packaging material of special sewn papermaterial with embedded threading

3,000

2,000

748

FY20/12882

FY21/12

1,059

1,267
1,000

FY22/12

FY23/120Trends in sales of sewn products
3,000
2,500
2,000
1,500
1,000
500
0

2,275

2,199

FY20/12

FY21/12

Copyright© 2024 The Pack Corporation. All Rights Reserved.

2,555

FY22/122,854(Million yen)

FY23/1214

Balance Sheet(Million yen)

Year ended
December 31, 2022

Year ended December 31, 2023

ActualActual

94,36598,847

Current assets

61,48459,080Non-current assets

32,881

39,766

Property, plant, and equipment

23,72927,401Intangible assets

1,044

2,679

Investments and other assets

8,106

9,685

28,994

27,691

Current liabilities

26,05426,605

Non-current liabilities

2,939

1,085

65,371

71,156

63,71368,092

1,611

3,018

Share acquisition rights

46

45

Non-controlling interests--

AssetsLiabilities

Net assets
Shareholders’ equity
Accumulated other comprehensive
incomeCopyright© 2024 The Pack Corporation. All Rights Reserved.

15

Cash Flow
(Million yen)

Year ended
December 31, 2022

Year ended December 31, 2023

ActualActualCash flows from operating activities

5,380

4,443

Profit before income taxes

5,925

7,941

Depreciation and impairment losses

2,315

2,082

Cash flows used in investment activities-3,762-3,962

Purchase of property, plant, andequipment-3,109-5,581

Purchase of intangible assets-433-1,702

Purchase of investment securities-2,357-36

Proceeds from sales of investment
securities

204

1

Cash flows used in financing activities-1,124-1,407-1,043-1,334

18,653

17,812Main items

Cash dividends paid
Cash and cash equivalents at end of
period We incurred expenditures associated with the establishment of a retirement benefit trust in preparation for the payment of lump-sum
retirement benefits.
 The increase in purchases of property, plant, and equipment include purchases related to land acquisition and construction for the
new headquarters.
 The amount of dividends paid increased as we maintained a payout ratio of 30% or higher on returns to shareholders.
Copyright© 2024 The Pack Corporation. All Rights Reserved.

16

2. Forecasts of Business Results
for the Year Ending December 31,
2024

17

Forecasts of Business Results
Toward new record highs in sales and profit(Million yen)

Year ended
December 31, 2023

Year ending
December 31, 2024

ActualForecast of businessresults

Forecast YoY change

Net sales

97,714

101,000

3.4%

Operating profit

7,743

8,100

4.6%

Ordinary profit

8,063

8,400

4.2%

Profit attributable toowners of parent

5,652

6,400

13.2%

Basic earnings per share(yen)

297.07336.27

13.2%

Dividend per share (yen)90.00

118.0031.1%

 Sales expected to exceed 100 billion yen for the first time We will expand both our lineup and sales of paper cartons and paper bags. We will strive to increase sales and profits byenergetically proposing solutions to social challenges in areas such as environmental impact, nature conservation, and addressing
the labor shortage.
Copyright© 2024 The Pack Corporation. All Rights Reserved.

18

Trends in Consolidated Business Results(Million yen)

Year ended
December 31,
2020

Year ended
December 31,
2021

Year ended
December 31,
2022

Year ended
December 31,
2023

Year ending
December 31,
2024 (forecast)

Net sales

78,44579,69089,06097,714

101,000

Operatingprofit

3,275

4,144

5,972

7,743

8,100

Trends in net sales

Trends in operating profit(Million yen)

150,000(Million yen)

10,0007,743

100,000
78,44579,69089,06097,714 101,000

8,100

5,972
5,000

4,144
3,275

50,00000FY20/12 FY21/12 FY22/12 FY23/12 FY24/12(forecast)

FY20/12 FY21/12 FY22/12 FY23/12 FY24/12(forecast)

Copyright© 2024 The Pack Corporation. All Rights Reserved.

19

Major Factors Underlying Projected Changes in Operating Profit
Profit growth driven mainly by growing sales of paper products(Million yen)

Year ended
December 31,
2023
Operatingprofit7,743

Year ending

Increased
sales
volumes

Higher averagesale prices

Higher raw
material costs

Higher othermanufacturing expenses

Higher labor
costs

Higherlogistics
costs+1,000

+550

-100

-100

-600

-200

Higher other December 31,
2024
selling, generaland administrative
Operatingexpenses

profit (forecast)

-193

8,100

 Growth in sales volumes centering on paper products thanks to stronger proposal-based sales
 Higher average sale prices achieved through proactive proposals involving eco-friendly products and high value added products,
starting with paper materials
 Higher labor costs due to increased hiring

Copyright© 2024 The Pack Corporation. All Rights Reserved.

20

3. Promotion of Sustainable Management

21

Promotion of Sustainable Management
Setting 12 materialities in five themes
Major themes

Materialities (Important Issues)
 Promoting eco-friendly product planning and technological development
Delivering solutions to environmental
Environment
 Reducing environmental impact throughout our business activities
issues through our business activities Contributing to environmental conservation and preservation

SocialValuing and nurturing people Promoting employee health and safety Developing and cultivating the capacity to oer total solutions related to packaging
 Promoting diverse work styles that encourage all employees to thrive

Building and enhancing relations oftrust with our business partners andcustomers Co-creating brand value with our customers
 Maintaining and improving quality through joint eorts with business partners

Contributing to social development
and prosperity
Governance Contributing to developing future generations and fostering environmental awareness Providing solutions to increasingly diverse social issues
 Securing soundness, transparency, and eciency in management
 Promoting supply chain risk management

Enhancing management foundations

Details of initiatives in the year ended December 2023 and the year ending December 2024
March 2023

Construction began on the new headquarters building

Beginning April 2023

Launch of Sustainability Committee (chaired by President & CEO Hideaki Yamashita; four members; met eight times in
2023)
Topics of deliberations: Preparation of the Sustainability Committee Regulations; final confirmation of TCFD disclosure;checking progress on CFP initiatives; overseeing Integrated Report, dealing with sustainability evaluation agencies;
expanding activities of The Pack Forest® Environment Fund; etc.

Beginning June 2023

Publishing the SHINKA bulletin for all employees to promote understanding of sustainability data andthe Medium-Term Management Plan internally (vols. 1-3 have been published).
Includes survey to stimulate internal dialogue and gauge permeation among employees as we strive
to ascertain workplace views and understanding.

September 2023

Materiality KPIs formulated

March 2024 (planned)

TCFD disclosure

May-June 2024 (planned)

Publication of Integrated Report and Sustainability Report
Copyright© 2024 The Pack Corporation. All Rights Reserved.

22

Promotion of Sustainable Management
 Construction began in March 2023 on the headquarters building at the site where the Company was founded. Plans for the facility
emphasize high environmental performance to contribute to a decarbonized society, consideration for local residents, and comfortableworkplaces. The new building will be a symbol of our sustainability management.

Building
evaluations• Zero-emissions building accreditation results: ZEB Ready, BELS highest rating• CASBEE accreditation results: CASBEE Rank S (highest rating), CASBEE Wellness Office Rank S(voluntary registration)Awards• FY2023 Osaka Environmentally Friendly Architecture Award in office category• Silver prize and guest judge’s prize (Bo Linnemann Prize) in the 57th Japan Sign Design Awards (SDA)
Use of eco-friendly technologies

オフセット印刷機• Natural ventilation and lighting using Ecovoid• Solar power generated via solar panels• Highly insulation-efficient exterior walls and low-E glass to
reduce air conditioning loads• Automated light dimming using LED lights with sensors inwork areas• Ventilation control through full use of heat exchangers
reflecting fluctuation in number of personnel present (CO2concentration)

Efforts to improve productivity• Reception rooms featuring large monitors• Layout suited to new workstyles and free-address
workspaces, remote work, paperless work, and online
meetings• Shared spaces to stimulate exchange and dialogue

Copyright© 2024 The Pack Corporation. All Rights Reserved.

23

Promotion of Sustainable Management
HR measures based on the corporate philosophy, “We value and nurture people.” We’re implementing various HR measures to support diverse employee workstyles and increase motivation and engagement with thegoal of increasing corporate value over the long term.
Training(Initial year, levels, Companywide)

Expand use of talent management
system.

Regular raises, increasing basepay, increasing bonuses

Adoption of an incentive program usingtransfer-restricted shares for theemployee stock ownership association

Promotion of women’s careers

Encouraging men to take childcare
leave

Adopting engagement surveys

Support to stimulate employee
interaction and dialogue* See “Progress of Human Capital Strategy,” p. 31 for details

Formulating materialities and KPIs
 We established materialities and KPIs in September 2023. Efforts continue in each section to achieve these KPIs by FY2030. The 2023
results are reviewed below.
Main theme

Materialities

KPIs

2023 results

Resolve environmental
issues through businessactivities.

Plan products and develop
technologies that reflect
environmental awareness.

Increase sales*1 of FSC® products (paper bags,
paper cartons, corrugated boxes) to at least 50%
of sales.

12,155 million yen
14.2%

Reduce overall environmental
impact of business activities.

Reduce CO2 emissions (Scopes 1 and 2) by 46%
vs. FY2018.

Planned for announcement
around May-June 2024

Contribute to nature protectionand environmental
preservation.

Conducting 15 activities/year, with 500
participants, under The Pack Forest®
Environment Fund

Nine activities per year,with 253 participants

Value people, nurture
people.

Promote diverse work styles
that allow employees to thrive.

Increase the percentage of women in managerial
positions (manager or higher) to at least 15%.

6.5%

Build and deepen trustwith suppliers andcustomers.

Co-create brand value withcustomers.

Increase the number of companies*2 supporting
The Pack Forest® Environment Fund to 300.

123 companies*1 Net sales: For the entire Paper Products Business of The Pack on a nonconsolidated basis*2 Relates to the number of companies with net sales results
Copyright© 2024 The Pack Corporation. All Rights Reserved.

(FSC® C020517)
24

4. Progress on the Medium-Term
Management Plan

25

Upward Revision of Figures Set for the Medium-Term
Management Plan Achievement in the year ended December 2023 of the operating profit target for the year ending December
2025 through the following efforts:
 High profitability achieved by executing the strategies and measures specified in the Medium-Term
Management Plan Major growth in profits achieved by optimizing selling prices in response to the rising costs of sales

Background ofrevisions
Details of upwardrevisionsTargets for the year ending December 2025:
107.0 billion yen in consolidated net sales, 8.3 billion yen in operating profit

Medium-Term Management Plan targets (FY2023-2025)
Initially planned consolidated net sales (left axis)

FY2023 results

FY2024-2025 revised targets

Initially planned operating profit (right axis)(100 million yen)(100 million yen)

+1.0 billion yen

1,200

976

1,000
800
600

1,010

940

890
59

77
64

1,000

120
+1.4 billion yen

81
67+1.3 billion yen

1,070

83

100
80

70

60

400

40

200

20

0

FY2022

FY2023

FY2024

Copyright© 2024 The Pack Corporation. All Rights Reserved.

FY2025026

Progress toward Numerical Targets under the Medium-Term
Management Plan
 Sales growth was up YoY for all markets and products in the first fiscal year of the Medium-Term
Management Plan.
 Sales in the food products and general distribution and retail markets expand beyond the full-year
forecast as of September 2023.
 Sales grew significantly in the main product categories of paper bags and paper cartons.

Overview

Numerical targets by market (FY2023-2025)(100 million yen)

Food products*
E-commerce, mail order,
logistics*
General distribution, retail,
etc.
Total

FY2022 result

FY2023 result

FY2025 target

Progress as of theend of FY2023

250

282

320

45.7%

140

147

180

17.5%

500

548

570

68.6%

890

977

1,070

48.3%

* The food products and ecommerce, mail order,
logistics market categories
in the Medium-Term
Management Plan reflect
consideration of productuses and customer
industries.

Numerical targets by product type (FY2023-2025)(100 million yen)

FY2022 result

FY2023 result

FY2025 target

Progress as of theend of FY2023

Paper bags

265

297

315

64.0%

Paper cartons

222

250

270

58.3%

Corrugated boxes

122

124

150

7.1%

Film packaging

119

138

145

73.1%

Other

162

168

190

21.4%

Total

890

977

1,070

48.3%

Copyright© 2024 The Pack Corporation. All Rights Reserved.

27

Progress of Growth Strategies in the Food Products Market
Progress toward quantitative targets

Overview of progress(100 million yen)

FY2022
resultFY2023
resultYoY change

250

282

12.8%

 Sales have grown achieved primarily through new developments related to product development
and proposal capabilities in response to strong demand for paper containers.
 Expansion of product lineup, enhancement of manufacturing and product-development
capabilities
 Proactive deployment of solutions-based business models

 Increase sales of primary food containers; initiatives for(100 million yen)trays and molded containers, etc.

Total paper cartons in thefood products market
Primary food containers(included in above)
Paper bags in the foodproducts market

FY2022
resultFY2023
resultYoY change

130.3

150.0

15.1%

69.1

77.2

11.7%

66.3

76.9

16.0%

(100 million yen)

<Factors underlying growth in primary food containers for food products>• Nationwide sales expansion across all regions, business scales, etc.
• Growth in new orders received through proposals for switching from plastic topaper containers• Increased manufacturing capacity through enhancements in manufacturing
equipment and improved productivity

 Expanded sales of film packaging; combined sales(100 million yen)

* To the food products
market only
Film packaging

FY2022 result FY2023 result

12.0<Factors underlying growth in film packaging>• Capturing demand for film packaging throughcombined sales• Enhancements in nationwide sales and supply
structures

13.3

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

YoY change

10.8%* To the food products
market only

FY2022 result FY2023 result

YoY change

FSC® products

40.6

50.3

23.9%

Products eligible under
The Pack Forest®
Environment Fund

2.5

2.9

16.0%

 Promote solutions proposals that contribute to customer
labor savings, streamlining, and automation.
• Contributing to streamlining of work at customer facilities
Promoting solutions bundling packaging line work improvements based on
improved packaging materials• Initiatives to offer one-stop services
Promoting proposals of services addressing customer labor shortfall issues,
such as box assembly and product assortment work, in addition to packaging
materials
October 2023: Setup facility began operating in Kanagawa Prefecture.
 Beginning FY2024: Commercialization based on improved productivity
and expanded service areas

Fully filmless paper-based flexible packaging withbarrier function

Copyright© 2024 The Pack Corporation. All Rights Reserved.

28

Progress of Growth Strategies in the E-commerce and Mail
Order Market and the Logistics Industry
Progress toward quantitative targets

Overview of progress(100 million yen)

FY2022
resultFY2023
resultYoY change

140

147

5.0%

 Sales of various products and services have grown in response to increasingly diverse demand.
 Expanding product lineups and enhancing manufacturing and design capabilities
 Proactive proposals of solutions based on automation and labor savings, in addition to
package sales

 Strengthen sales of delivery bags that increase transport
efficiency for customers.
(100 million yen)
FY2022 result FY2023 result

YoY change

Paper delivery bags

8.8

9.8

11.4%

Other delivery
materials
Reference:
Corrugated boxes

2.8

4.5

60.7%

122.1

124.2

1.7%

• New orders received are growing in the e-commerce (mail-order) market for
paper delivery bags and other delivery materials (e.g., thin delivery boxes), in
addition to traditional corrugated boxes.
• Demand for paper delivery bags is expected to grow as the industry
addresses restrictions on work hours to take effect in 2024 and the need to
improve packing work efficiency, and we are seeking to expand
manufacturing capacity.

 Further increase sales of reinforced corrugated boxes(100 million yen)for heavy objects.
FY2022 result FY2023 result
Reinforced
corrugated boxes

9.7

9.8

YoY change

1.0%

As in January-June FY2023, under conditions of intensifying competition,
dropping export demand, and rising raw material costs, we maintained
sales in individual markets through sales activities leveraging the valueof our in-house design and proposal capabilities.

 Develop materials and processes for automatic packaging
and increase related sales.
• Proactive proposals of automatic packaging systems tailored to customer
environments.
• Development of automatic packaging machinery and materials to meetcustomer needs
Heat-sealed coatings free of plastic film are currently under development.

Automatic packaging machinery for paperdelivery bags

Example of corrugated paper delivery bag

 Strengthen proposal-based sales that help reduce labor
requirements at customer facilities.
• Promoting proposals of automationequipment and work improvements on
packaging lines• Development of jigs that help reduce timerequired for box assembly work (trademark
applied for)Copyright© 2024 The Pack Corporation. All Rights Reserved.

29

Progress of Growth Strategies in Various Markets, Including
General Distribution and Retail Market
Progress toward quantitative targets

Overview of progress(100 million yen)

FY2022
resultFY2023
resultYoY change

500

548

9.6%

 Proposal-based sales in response to growing demand in the market and changing businessconditions are bearing fruit.
 Major growth in sales of paper bags
 Sales growth in the apparel and life care markets

 Increase paper bag share and continue pursuing proposalbased sales to promote the migration to paper Develop sales channels in ASEAN region.
• Promoting the securing of global business customers and trade rights inAsia(100 million yen)

General distribution andretail market and othermarkets

FY2022 result

FY2023
resultYoY change

Paper bags

131.0

153.0

16.8%

Film packaging

70.8

81.6

15.3%

• Establishing optimal supply chains in individual regions

 Promote social contributions alongside customers.

<Factors underlying growth of paper bags>• Progress of migration to paper for takeout paper cartons at major specialty retailstores and large retailers• Growth in orders received and market share through supply chain
improvements and increased manufacturing capacity• Proposing optimal specifications for various customer needs

 Product sales aligned with the three Rs (reduce, reuse, recycle)• Initiatives to reuse customer waste for manufacturing packages
Paper products: development of proprietary mixed paper for use in paper bags
Plastic products: manufacturing plastic bags from waste

Mixed paper and used textile bags made fromused clothing•

Proactive proposals and sales expansion of sewn products to encourage reuse

Activities of The Pack Forest® Environment Fund
Results in 2023:• Forest conservation activities: Nine activities undertaken, including six
in joint efforts with customers(Total customer participation: 65 people from ninecompanies)
Planted 828 trees, capable of absorbing 5.2 tons of
CO2 (estimated).
• Concluded a contract on andconducted forest conservation
activities at a new tree-planting
activity site in Nagano Prefecture.

Future plans• Adding one new tree-planting site in each of the years 2024 and 2025
to achieve materiality KPI for 2030 of 15 activities/year, with 500
participants, under The Pack Forest® Environment Fund
• Also considering waste collection activities in rivers to preserve andrestore coasts and rivers

Copyright© 2024 The Pack Corporation. All Rights Reserved.

30

Progress on Human Capital Strategy
Overview

 Implementing various measures to secure human resources to support growth and maximizevalue Linked to materialities (important issues) and KPIs
 Using stress checks and engagement surveys

Develop optimal working environments.

Secure diverse human resources.

• Revise rules for remote work in normal times as well.
• Encouraging men to take childcare leave, etc.: Ten men took thisform of leave in FY2023.

• Strengthen mid-career hiring.
From 23 hired in FY2022 to 35 hired in FY2023• Expand hiring opportunities.
Referrals, re-hires: 15 hired in FY2023

Maximize employee engagement.

• Promote active participation of women.
FY2022 result

FY2023 result

FY2025 target

Women as a percentage offull-time employees

22.2%

22.9%

25.0%

Women as a percentage ofmanagerial positions(manager or higher)

9.6%

8.8%

10.0%

* Targets in the Medium-Term Management Plan are on a consolidated basis.

• Appropriate wage structure, enhancements to benefits
Increased wages by 5.01% on average• Raise management participation awareness by joining stock ownershipassociation.
Introduced incentives using transfer-restricted shares for the employee
stock ownership program• Energize employee interactions and communications.
Supported social gatherings among employees to encouragecommunication in the Company.
• Conduct stress checks and engagement surveys.
Based on survey results, implementing measures in FY2024 to reducehigh stress levels and make work more rewarding

Develop human resources.

Personnel plan

• Implementing training programs suited to various levels, including newly
introduced training• Digital transformation (DX) training implemented for all officers and all
employees (700 people)
FY2023 results: Programs to foster a DX mindset among non-IT
specialist personnel and to uncover DX human resources
 In FY2024, programs will be launched to train untapped humanresource potential and generate growth.

FY2022
resultFY2023
resultProgress rate
at the end of
FY2023

FY2025
plan

1,797

1,836

31.7%

1,920

Total employees, including
full-time employees,
contract employees, andpart-time employees

Increased number of operators in manufacturing sections contributes to growing
manufacturing capacity.
 Staffing increases planned for all sections in FY2024 and later

Copyright© 2024 The Pack Corporation. All Rights Reserved.

31

Progress on Financial Strategy (1): Proactive Investment
 Implementing measures to increase growth and corporate value
 Facilities enhancements centered on paper cartons and paper bags
 Investment in increasing corporate value

Overview

Capital investment

M&A(100 million yen)

Strategy
investment

Initialplan(2023-25)

FY2023
result

20.0

7.9

16.6

30.0

7.8

20.7

11.0

1.2

9.6

2.0

0.4

1.5

Other

2.0

0.1

0.8

Strategy investment, total

65.0

17.4

49.2

20.0

5.6

12.0

‐

19.0

-

‐

3.8

-

10.0

-

55.8

61.2

Augment paper cartonmanufacturing capacity
Augment paper bag
manufacturing capacity
Rationalization, laborsavings
Energy savings, resourcesavings

Plant equipment maintenance, etc.
Landacquisition

Acquisition of plant sitenear Osaka Plant
Acquisition of plant sitenear Tokyo Plant

Headquarters reconstruction
Total

FY2023 strategy investment results
Paper cartons:
Increasing food container manufacturing
capacity
Expanding e-commerce materials lineup
Paper bags:
Increasing manufacturing capacity
Rationalization, labor savings

85.0

FY2024-25
plan

FY2024-25 strategy investment plans
Paper cartons:• Research and study now underway with a focus on balancing corebusiness growth with expansion of business domains

Backbone system upgrades• Investment toward backbone system upgrade in FY2025 Promoting
business and management efficiency improvements together with
optimization of management resources
FY2023 investment results:
FY2024 investment plans:

1.3 billion yen
1.0 billion yen• Starting development of a system to support sales activities, aimed at
improving management and service quality, in or after 2024

HR investment• FY2023 result: 980 million yen• HR development and hiring:• Expanded hiring and wage increases:

60 million yen
920 million yen• We plan proactive investments in human resources in FY2024 as well.

Paper cartons:
Increasing manufacturing capacity forpaper cartons overall
Expanding product lineup
Rationalization, labor savings
Paper bags:
Increasing manufacturing capacity
Copyright© 2024 The Pack Corporation. All Rights Reserved.

32

Progress on Financial Strategy (2): Further Enhancements in
Shareholder Returns
 Strengthening corporate value through dialogue with investors and shareholders and continuous
consideration by the Board of Directors and other bodies

Overview

 Alongside efforts to maintain ROE and ROIC of 8% or higher as indicators of returns on capital,
we will target a total payout ratio of 50% by increasing the dividend payout ratio to enhanceshareholder returns and by purchasing treasury stock.

Initial plans

Dividend
payout ratioBuying backour ownsharesTotalshareholder
returns andtotal payout
ratio

Revised plans

Maintaining 30% payout
ratio or higher

FY2023 result: 30%
FY2024-2025:

Maintaining a level of 35% orhigher

FY2023 result: none
Flexible share buybacks

FY2024-2025:

Buying back up to 1.0 billion
yen of our own shares eachyear

8.0 billion yen
4.0 billion yen(FY2023-2025 total)

Breakdown

Dividends

Buying back our own Total payout
sharesratio

FY2023 result

1.7 billion yen

None

30%

FY2024

2.2 billion yen

Up to 1.0 billion yen

50%

FY2025

2.2 billion yen

Up to 1.0 billion yen

50%

Copyright© 2024 The Pack Corporation. All Rights Reserved.

33

5. Reference Materials

34Corporate Overview
Name

THE PACK CORPORATIONFoundedMay 1952 (shares listed September 1991; listed on TSE Prime Market April 2022)

Headquarters

2-9-3 Higashiobase, Higashinari-ku, Osaka City, Osaka* Relocated in May 2023.

Lines ofbusiness

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

Executives

Hideaki Yamashita, President and CEO, eight other directors (including three outside directors),
and four auditors (including two outside auditors)

Number of
employees

1,183 consolidated, 840 nonconsolidatedGroup
companies

Eight consolidated subsidiaries (in Japan, the United States, and China)

Main banks

MUFG Bank, Sumitomo Mitsui Banking Corporation, Mitsubishi UFJ Trust and Banking
Corporation, Sumitomo Mitsui Trust Bank, Mizuho Bank

Main
shareholders

Morita Memorial Welfare Foundation 10.93%, The Master Trust Bank of Japan (trust account)
8.25%, BBH for Fidelity Low-Priced Stock Fund (principle all-sector sub-portfolio) 6.61%, Partnercompanies’ stock ownership program, Custody Bank of Japan (trust account) 4.73%, Custody
Bank of Japan (trust account) 4.60%, Custody Bank of Japan (Resona re-trust
account/Hokuetsu Corporation retirement benefits trust account) 3.26%, Daio Paper
Corporation 3.01%, MUFG Bank 2.60%(As of the end of December 2023)
Copyright© 2024 The Pack Corporation. All Rights Reserved.

35

The Pack Group (Eight Consolidated Subsidiaries)
The Pack Corporation
Headquarters (Osaka)

Tokyo Head Office
Building

Osaka Plant

Tokyo Plant

Nara Plant

Ibaraki Plant(All sites have earned ISO 9001 and ISO 14001 certification.)
Domestic subsidiaries
Keihin Tokushu Printing
Corp.

Nikko Print Corporation

Pack Takeyama Co., Ltd.

Nishinihon Printing Co.,Ltd.

Kannaru Printing Co.,Ltd.

Offset printing machine

Overseas subsidiaries
Consolidated subsidiaries in China
The Pack (Changshu) Co., Ltd.

The Pack(Shanghai)
Corporation

U.S. consolidated
subsidiary
The Pack
America
Corporation

Copyright© 2024 The Pack Corporation. All Rights Reserved.

(As of December 2023)

36

Trends in Net Sales and Ordinary Profit (Consolidated) fromthe Company’s Founding (1952) through 2023
(Million yen)

100,000

10,000Net sales (left axis)

Operating profit (right axis)

90,0009,000

80,0008,000

70,0007,000

60,0006,000

50,0005,000

40,0004,000

30,0003,000

20,0002,000

10,0001,000

001952 1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

Copyright© 2024 The Pack Corporation. All Rights Reserved.

2005

2010

2015

2020 2023
37

Distribution Structure for Major Products
Consumers
Main buyers

Department
storesConvenience
storesSupermarkets
and drug stores

ApparelPharmaceuticals
and cosmetics

Sundries

Food productsHome electronics
and home
installations

e-commerce(mail order)etc.

Raw materials makers

Paper, fabric, plastic film

Ink

Adhesive

Other
parts andmaterials

Copyright© 2024 The Pack Corporation. All Rights Reserved.

etc.

38

The Pack’s Strengths (1)Strength

1. A wide-ranging
customer base

Apparel and other goods

e-commerce

Specifics
 Transaction counterparties:
approx. 14,000 companies
Food products, department stores,
specialty stores, large retailers, generalretailers, convenience stores, fast food,apparel, home electronics manufacturers,
e-commerce, etc.
 A customer base resistant to thenegative effects of downturns
in specific industries
 Food products Apparel Convenience stores Pharmaceuticals
and cosmetics
 Life care

 Home electronics andhome installations

Year ended December 31, 2023（％）

 Department  Supermarkets
storesand drug stores e-commerce  Sundries(mail order)
 Automotive  Other

Food products
Copyright© 2024 The Pack Corporation. All Rights Reserved.

Consumer industries
39

The Pack’s Strengths (2)Strength

2. A total packaging
solutions provider

Specifics
 (Full support structure)
Solutions proposed by joint efforts of the sales, research and planning,
engineering, and design sections
 (Thorough expertise and access to large body of information)
Operating one of Japan’s largest packaging labs

 Delivering consulting-based solutions in response to the wideranging needs of customers

Packaging lab
Copyright© 2024 The Pack Corporation. All Rights Reserved.

40

The Pack’s Strengths (3)Strength

Specifics

3. Integrated manufacturing, sales, andlogistics structure

The Pack Group

Manufacturing

Printing plant

Paper bag plant

Direct sales structure
Hokkaido Branch
Aomori Sales OfficeNiigata Sales OfficeFilm packaging plant Paper cartons plant

Keihin Tokushu Printing Corp.

Headquarters, division
Branch, sales officeSubsidiary

Matsumoto Sales Office
Tohoku Branch

Kanazawa Sales Office
Kyoto BranchTokyo Plant
Tokyo Head Office Building

Kobe Branch
Yonago Sales Office
Okayama Branch

Ibaraki Plant
Kanto Branch

Hiroshima Branch

Yokohama Branch
Shizuoka Sales Office
Nagoya Branch

Fukuoka Branch

Pack Takeyama Co., Ltd.

Nishinihon Printing Co., Ltd.
Nagasaki Sales Office
Kumamoto Sales Office
Kagoshima Sales Office

Okinawa
Sales OfficeCorrugated board plant

Takamatsu
Sales Office
Shikoku Branch
Oita Sales OfficeOsaka Plant
Nikko Print Corporation
Kannaru Printing Co., Ltd.
Nara Plant
Headquarters (HQ)

Teamwork among our four domestic plants, Group
companies, and subcontractor plants also helps manage
the risk of disasters and accidents.

Nationwide direct sales structure
Logistics

Products

Customers across Japan

Copyright© 2024 The Pack Corporation. All Rights Reserved.

41

The Pack’s Strengths (4)Strength

4. Quality control
structure

Specifics Groupwide quality management systems are ISO 9001-certified.
 The Tokyo and Osaka plants

have earned FSSC 22000 international food-safety
management system certification.
 Based on a policy of improving customer satisfaction through enhanced
quality, we strive to earn customer trust by delivering safe, reliable products.

 Delivering packaging materials, supplies, and other products as anintegrated service

 Streamlined logistics based on bulk deliveries also helps
Example of
cut CO2 emissions.
ordering services
Customerheadquarters

 Offering Pack-Web web-ordering
services

Customer stores

 Streamlining customers’
ordering operations

Packagingmaterials

Product
registration andrevision
Order lists

Officematerials
Supplies

Items handled

5. IT-driven customer
networks(Internet)

Store A

Ordering
instructions

Customerorder(Internet)

Store B

Our logistics center

Our system
Ordermanagement

Store C

Delivery toeach store

Copyright© 2024 The Pack Corporation. All Rights Reserved.

Our production plansand purchasing sections

Status of order receipt
Restocking management

42

ESG Initiatives (1)Initiatives

1. Environmental
Initiatives

Specifics
 All plants and sites in Japan had earned ISO 14001 certification as of 2006.
 We are implementing a wide range of initiatives, including measures to cut CO2 emissions andwaste volumes and to develop eco-friendly products.
 We fulfill our obligations as a core member of the Japan Clean Ocean Material Alliance, which
promotes activities across the economy to develop and promote innovative substitutes based on
public-private partnerships to reduce ocean plastic waste.
 Support the spread and growth of renewable energy through investment in renewable energy
funds.
Overview of environmental impact
We’re striving to ascertain and lessen the environmental impact of production activities as a whole.
* The data shown below are for the four plants (the Osaka Plant, Nara Plant, Tokyo Plant, and Ibaraki Plant) and the headquarters and sales groups

Relationshipto the SDGs

* 2022 figures
Copyright© 2024 The Pack Corporation. All Rights Reserved.

43

ESG Initiatives (2)Initiatives

Specifics

2. Activities of The Pack
Forest® Environment
Fund(forest conservation
activities)

 In 2000, we established an independent Forest® Environment Fund and launched volunteer
activities to plant and thin forested areas. Currently, trees are being planted on nine sites
nationwide.
 We contribute a portion of the sales from eco-friendly products to the Forest Environment Fund.
 Operation of the Fund is subcontracted to the nonprofit Eco Future Fund (EFF).
 We carry out forest conservation activities with the participation of not just The Pack employees,
but customers and the general public.

Paper
makersEco-friendly basepaper, non-woodbased paper, etc.
(e.g., bagasse)

Forest Products

THE PACK
Materials
makers

Product proceeds

Customers

Volunteering

Eco-friendly materials(e.g., biodegradable
rope)
Volunteering

Donations

Relationshipto the SDGs

Funding activities

The Pack Forest®
Environment Fund

The Pack Forest
Mark

Tree planting andforest conservation
activities in Japan

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

Funds contributed
Trees planted
Total participants
Planted land area
CO2 emissions absorbed

1.90 million yen
21,906
7,328
18.51 Ha
1,973.47 t(Totals as of the end of December 2023)
Copyright© 2024 The Pack Corporation. All Rights Reserved.

44

ESG Initiatives (2)Initiative

2. The Pack Forest®
Environment Fund
activities (forest
conservation activities)

Details
 Activities at The Pack Forest No. 9 in Fujimi, Nagano Prefecture began in 2023
To support Nagano Prefecture’s “Forest Foster Parent Promotion” project, we
designated a 1.8 ha site in Fujimi, Suwa-gun, Nagano Prefecture as The Pack
Forest Fujiminomori.
In line with the characteristics of the site, activities here focus on planting Japaneselarch trees and conservation efforts.
Results of first activities in June 2023
Participants:
30
Trees planned: 700 Japanese larch

Relationshipto the SDGs

Group photo
Employees and their family members
participating as volunteers

Activity
Planting of a sapling grown in a
special container after using a special
tool to dig a hole

Copyright© 2024 The Pack Corporation. All Rights Reserved.

45

ESG Initiatives (3)Initiatives

3. Human Resource
Development andWorkplace
Development

Specifics
 In accordance with our Company Motto, “Passionate and Dedicated to Our
Partnerships,” and our Corporate Philosophy, “We Value and Nurture People,” weimplement initiatives to contribute to employee welfare, including human resource
development, support for childcare and long-term care, and employment stability.
 Recognized as a 2023 Certified Health & Productivity
Management Outstanding Organization(for the fifth consecutive year)
Thorough health checkups and secondary examinations,smoking cessation challenges, stress checks,
health training, etc.
 Adoption and use of evaluation and support programs to help improve skills
In 2020, we adopted a new HR system, which includes the integrated managementof employee information using a talent management system, fair and appropriate
evaluation through evaluation meetings by the Human Resource Development
Council, and financial assistance for employees earning official qualifications
through the skills improvement support program.

Relationshipto the SDGs
 Utilizing diverse human resources
Promoting women in the workplace; comprehensive reduced working hours
program; establishment of The Pack’s own unique childbirth and childcare leave
program (for male employees); opening the Kainan Satellite Factory to employ
people with disabilities, etc.
Copyright© 2024 The Pack Corporation. All Rights Reserved.

46

ESG Initiatives (4)Specifics

Initiatives

4. Social Contribution
Activities As part of our environmental education initiatives, in cooperation with the city ofHigashi-Osaka, we organize hands-on manufacturing classes at elementary
schools.

 Sponsorship of the Kansai Philharmonic Orchestra
 Donations to Yoshinoyama Hoshoukai
 Support for the Kids Earth Fund

Relationshipto the SDGs

The Kids Earth Fund undertakes
support activities for children aroundthe world who have sufferedpsychological trauma. The Company isregistered as a corporate member.
When requested by customers,
pictures from the Kids Earth Fund areused in the graphic design of
packaging.
Copyright© 2024 The Pack Corporation. All Rights Reserved.

47

Note
This document is intended to provide information on management policies and business results for the second quarter of the year ended
December 31, 2023. It is not intended to solicit investment in securities issued by the Company. In addition, this document was preparedbased on data as of the end of December 2023.
Views, forecasts, and other information contained in this document are based on the Company’s judgments at the time the document was
prepared. No guarantees are made concerning the accuracy or completeness of such information. The contents of this document are
subject to change without notice.

Address IR inquiries to:
IR & Public Relations Department, The Pack Corporation
2-8-4 Tomigaya, Shibuya-ku, Tokyo 151-0063, Japan
Tel.: +81-3-3469-1221; fax: +81-3-3469-1353
E-mail: koho@thepack.co.jp
48