Rengo Co (3941) Investor presentation summary

Financial performance and business environment

• Net sales for 2Q FY3/2025 were ¥495.1 billion, nearly meeting forecasts, with new consolidations and yen depreciation supporting results.

• Operating profit was ¥19.8 billion, below forecast due to moderate demand recovery and higher costs.

• Profit attributable to owners exceeded forecast, aided by negative goodwill from RM TOHCELLO consolidation.

• Corrugated packaging demand was solid but below expectations; flexible packaging saw recovery from tourism and events.

• Overseas business benefited from new consolidations but faced profitability challenges in Europe.

Strategic initiatives and investments

• Price revisions for paperboard, packaging, and flexible packaging are being implemented to address rising costs and support growth.

• Investments include a demonstration project for second-generation bioethanol and upgrades to R&D and manufacturing facilities.

• Major capital investments target improved working environments and production efficiency at multiple plants.

• Expansion in growth markets includes new plants in Eastern Europe, North America, and India.

Environmental and digital transformation

• Significant investments are being made to reduce GHG emissions, including biomass boilers and fuel conversions, targeting a 46% reduction by FY2030.

• RFID technology is being introduced for containerboard management to enhance logistics efficiency and safety.

• Participation in industry initiatives to standardize carbon footprint calculations and promote sustainable logistics.