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Business Strategy

The Hokuetsu Group formulated Medium-term Management Plan 2026 as a core timeframe for realizing our business group image of Vision 2030. We aim to achieve our consolidated management indicators and strive to improve our corporate value by further shifting our business portfolio, strengthening our competitiveness, including environmental competitiveness, and promoting sustainability activities.

Medium-term Management Plan 2026

Basic Policy 1.Shift Business Portfolio We will pioneer new core businesses to further accelerate our business portfolio shift, with the aim of the continuous growth of the Group. We will strive to expand our growth operations by exploring new businesses in Japan and overseas, promoting M&As, and developing new products that meet our customers needs. 2.Strengthen Competitiveness  We will further strengthen our competitiveness of “costs,” “the environment,” and “safety.” We will pursue a safe and stable production system that ensures profitability even within the contraction occurring in the domestic printing and communication paper market.By further improving our industry-leading environmental competitiveness, we will solidify our position as the papermaking company group chosen by customers. 3.Promote Sustainability (ESG) Activities We will promote responses to climate change, and the development of environmentally friendly products. As a people-oriented company, we will promote diversity and work-style reforms, and build a resilient organization by promoting human capital management and business activities that respect human rights. We will strive to enhance our corporate governance, including by strengthening our risk management system.

Consolidated Management Indicators (FY2025)

Net sales:¥330 billion Operating income:¥20 billion Ordinary income:¥24 billion Net income attributable to owners of parent company:¥20 billion ROE:8.0% EBITDA:¥39 billion

Investment Business

Primarily manages and assesses overseas Group companies such as Alberta-Pacific Forest Industries Inc. (Al-Pac) in Canada and Jiangmen Xinghui Paper Mill Co., Ltd. in China, and makes strategic investments through M&As and other means. It aims to transform the Group’s business portfolio into one that can achieve sustainable growth.

Paper and White Paperboard Business

The Paper & White Paperboard Business mainly produces printing and communication paper, white paperboard, and specialty paper, of which coated paper and printing paper boast a high market share in Japan. In recent years, it has been developing new products at the Nagaoka Mill as the use of white paperboard for food packaging and as an alternative to plastic has increased.

Performance Materials Business

The Performance Materials Business has a product development office within the Performance Materials Sales Division that plays the role of promoting strategic businesses that pave the way for the future, and works closely with our research laboratory. Our aim is to rapidly realize new businesses by having the sales and engineering departments work together to find and develop new businesses.

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