Securities Report - 88th Fiscal Period (2025/04/01 - 2026/03/31)

Nippon Plast Co., Ltd. Securities Report - 88th Fiscal Period (2025/04/01 - 2026/03/31)

Nippon Plast Co., Ltd. has submitted its securities report for the 88th fiscal period (April 1, 2025 to March 31, 2026) to the Financial Services Agency. This report aims to provide investors, financial institutions, analysts, and other stakeholders with accurate and comprehensive information regarding the company's financial performance, financial position, and management policies.

Overview of Financial Performance

Sales revenue for the 88th fiscal period is expected to increase slightly compared to the previous year, primarily driven by recovering demand in the automotive and packaging materials divisions. Despite ongoing pressure from high raw material prices, the operating profit margin is projected to remain stable through cost structure reviews and improvements in production efficiency.

Financial Position

The company maintains a stable financial position, with its interest-bearing debt repayment plan progressing smoothly. The equity ratio stands at 38.5%, reflecting continued financial health. Capital expenditures will focus on new factory construction and automation of production lines.

Management Policies and Future Outlook

To achieve sustainable growth, the company has established three strategic pillars for its medium- to long-term management strategy:

- Advancing green innovation (development of bioplastics and recycling technologies) - Accelerating global expansion (strengthening presence in Southeast Asia and North America) - Deepening digital transformation (AI integration in production management and supply chain)

Under its medium-term management plan extending to fiscal year 2026, the company targets sales of 1.2 trillion yen and an operating profit margin exceeding 8%.

Risk Factors

The company faces several business risks, including:

- Fluctuations in raw material prices (particularly crude oil and natural gas) - Exchange rate volatility (erosion of export competitiveness due to yen appreciation) - Stricter environmental regulations (global expansion of plastic restrictions) - Supply chain disruptions (geopolitical risks and natural disasters)

The company is addressing these risks through diversified procurement, enhanced hedging strategies, and business continuity planning (BCP) reviews.

Social Responsibility and ESG Initiatives

The company is actively advancing initiatives from an environmental, social, and governance (ESG) perspective. It aims to reduce CO2 emissions by 40% by 2030 compared to 2019 levels, through the adoption of renewable energy and upgrades to energy-efficient equipment. The company is also committed to promoting diversity and strengthening corporate governance.

Shareholder Return Policy

Based on stable earnings, the company aims for continuous and gradual increases in dividends. The annual dividend for the 88th fiscal period is expected to be 32 yen per share, an increase of 2 yen from the previous year. The company also maintains a flexible approach to treasury stock acquisitions based on market conditions.

Contact Information

For inquiries regarding the securities report, please contact:

Investor Relations Department, Finance Division Nippon Plast Co., Ltd. Phone: +81-3-1234-5678 Email: ir@nipponplast.co.jp