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About Daio Paper

Daio Paper’s Business

The Daio Group carries out business in two main segments: the Paper and Paperboard Business and Home & Personal Care Business (“H&PC” business). We provide materials that support culture and industry, including newsprint, printing and publication paper, cardboard, and wrapping paper, as well as personal care products that support various aspects of daily living, including products like facial tissue, toilet paper, baby diapers, and adult diapers.

History of Daio Paper

Daio Paper was founded in Shikokuchuo City, Ehime Prefecture in 1943 and developed its business around the production and sale of newsprint and paperboard.

In 1978, Daio Paper entered the paper market on a full-fledged basis; in 1979, the Company utilized its papermaking technology to enter the sanitary paper market with its Elleair brand; in 1980s, Daio Paper drew on marketing expertise cultivated through Elleair to enter markets for related products like disposable diapers, feminine care products, and wet wipes, thereby building a unique business portfolio

In 2011, Daio Paper began a full-scale overseas expansion of the H&PC business, establishing production facilities in Thailand, China, and Indonesia with a basic strategy of local production for local consumption, and actively rolling out H&PC products, centering on disposable baby diapers. Going forward, the Company will create additional business groupings through multi-product sales with sanitary paper and other products, and further expand business in areas with high growth potential.

Guided by our management philosophy, “Shaping an abundant and affable future for the world,” and with a view to achieving sustainable growth, Daio Paper will continue flexibly accommodating the changing needs of society in a wide range of areas while contributing to the development of culture and industry and raising the quality of life in Japan and around the world.

Strengths of Daio Paper

■ Competitive Advantages of Mishima Mill, the Daido Group’s Main Production Mill

Daio Paper’s Mishima Mill in Ehime Prefecture is one of the world’s premier coastal paper mills. It leverages its strength in utilizing diverse pulps to produce every conceivable type of paper and paperboard, flexibly accommodating changes in market demand trends.

《Mishima Mill’s Competitive Advantages》
  1. Mishima Mill is located next to an international trading port, so it has a cost advantage in distribution to China and other countries in Asia.
  2. Mishima Mill has the country’s largest softwood pulp facility and its second largest hardwood pulp facility by production volume (based on internal research), and being located on the coast, it has a cost advantage in wood chip procurement.
  3. Difficult-to-process used paper can be effectively utilized thanks to Mishima Mill’s paper sorting and pulping technologies, which are the country’s foremost. Wood fiber is material recycled and plastic and other waste is thermal recycled in order to achieve zero waste emissions.
■ Daio Group’s Ability to Innovate to Meet Societal Needs

Daio Paper develops products based on a market-in approach, with its management philosophy, “Shaping an abundant and affable future for the world,” as the starting point. The Company has developed and marketed numerous products that meet the diverse needs of society.

《Innovation in the H&PC Business》

Daio Paper develops and provides products that support comfortable living under its mainstay Elleair brand, working to help raise people’s quality of life.

In fiscal 2018, Elleair captured the top market share in all categories of sanitary paper—tissue, toilet paper, and paper towels. To solidify this No. 1 position in every category going forward, Daio Paper will continue to develop products from the consumer’s perspective and ensure their stable supply while accommodating the diversifying social structure.

《Innovation in the Paper and Paperboard Business》

Along with developing high value-added products that meet user needs, Daio Paper works to contribute to the establishment of a recycling-based society through utilizing difficult-to-process used paper, which previously was disposed of, and meeting demand for plastic-free and reduced plastic products.

To help solve the problem of marine plastic pollution, Daio Paper develops and sells plastic alternatives, an area of growing demand. In particular, our EliPla Paper, a plastic alternative launched in 2019, received the Encouragement Prize at the 29th Global Environment Awards.

Vision of Daio Paper

Long-Term Vision

Guided by its management philosophy, “Shaping an abundant and affable future for the world,” Daio Paper has set a long-term vision of “To strategically reform its business portfolio and become a sustainable corporate group capable of continuous growth” and is targeting net sales of ¥800 billion to ¥1 trillion in ten years (with at least 50% from the H&PC business and 30% from H&PC overseas).

Through a business strategy focused on future changes in the market environment from a medium- to long-term perspective for achievement of the long-term vision, Daio Paper will contribute to solving environment, social, and governance (ESG) issues and to the realization of a sustainable society as envisioned by the UN’s Sustainable Development Goals (SDGs).

Numerical Financial Targets of Medium-Term Business Plan

(Billions of yen)

1st MTBP 2nd MTBP 3rd MTBP 4th MTBP
FY2014 FY2017 FY2020 FY2023(Plan)
Net sales 450.2 531.3 562.9 720.0
Operating profit 21.8 (4.8%) 11.1 (2.1%) 36.9 (6.6%) 51.0 (7.1%)
H&PC overseas 4.9% 7.7% 11.1% 18.8%
ROE 10.0% 2.2% 10.1% 10.0%
Net D/E ratio 1.9 1.6 1.3 1

Becoming a Shareholder of Daio Paper

1. Dividends can be received twice a year.

Dividends can be received twice a year, at the interim and year-end, based on the number of shares held. Daio Paper regards shareholder returns as one of the most important tasks of management and has a basic policy of maintaining a stable dividend while taking into account financial performance, the sufficiency of internal reserves, and other factors.

2. Long-term shareholders receive annual shareholder benefits in the form of daily necessity products from Daio Paper.

Shareholders continuously holding at least 100 shares of the Daio Paper stock for at least one year* receive an assortment of Daio Paper products.

* Refers to shareholders registered three consecutive times or more under the same shareholder number in the shareholder registry at the end of March and the end of September of each year.

3. Voting rights may be exercised at the General Meeting of Shareholders.

Shareholders with at least one share unit (100 shares) are permitted to exercise voting rights on matters to be resolved at the General Meeting of Shareholders held in June of each year. By exercising voting rights and voting for or against matters to be resolved, shareholders participate in the Company’s management. Shareholders unable to attend the General Meeting of Shareholders are able to exercise their voting rights in writing, via the Internet, or by other means.

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