Rengo Co (3941) Investor presentation summary

Financial performance and outlook

• Net sales for Q2 FY2025 reached ¥497.2 billion, nearly meeting forecasts, with operating profit at ¥20.0 billion and profit attributable to owners at ¥11.0 billion, slightly below expectations due to the absence of last year's negative goodwill.

• Price revisions in paperboard, flexible, and heavy duty packaging supported profits, offsetting increased fixed and logistics costs and overseas business weakness.

• Full-year outlook anticipates continued benefits from price revisions, a modest recovery in corrugated board production, and ongoing inflationary pressures on costs.

Vision120 and strategic direction

• Vision120 (2025–2029) aims to strengthen the value creation foundation, targeting net sales of ¥1.2 trillion, EBITDA of ¥135 billion, operating income of ¥70 billion, and ROE of 8.5% by FY2029.

• Focus on ESG priorities, group-wide collaboration, and maximizing synergies across five business segments.

• Human-centric management and sustainable growth are central to the long-term strategy.

Business initiatives and investments

• Ongoing factory renewals, M&A, and capital investments in Japan to enhance competitiveness and sustainability, including major upgrades and new warehouses.

• Structural reforms at Taiko Paper, including machine consolidation and energy transition, support productivity and bioethanol business launch.

• Flexible packaging business invests in automation, system upgrades, and post-merger integration to boost efficiency and profitability.

• Heavy duty packaging focuses on high value-added products and market expansion, leveraging resin processing technologies.