#DaioPaper

On March 19, 2026, Daio Paper Corporation acquired 12,240,000 shares of treasury stock for a total of 13,721,040,000 yen, completing the acquisition based on the board resolution.

As of March 24, 2026, Hokuetsu Corporation is expected to be excluded from Daio Paper's other affiliated companies. Hokuetsu Corporation transferred 11,000,000 shares of treasury stock, reducing its voting rights ownership ratio from 24.83% to 19.71%.

Daio Paper and Hokuetsu Corporation adjusted their mutual voting rights ratios to below 20%, deepening their strategic business alliance. They indicated a medium-term plan to reduce the ratio further to around 5–10% (2026-03-18).

Hokuetsu Corporation has applied to purchase 11,000,000 shares in Daio Paper Corporation’s treasury stock buyback transaction. If all applied shares are purchased, it is expected to cease being an equity-method affiliate.

Daio Paper and Hokuetsu Corporation will adjust their mutual voting rights ratios to below 20%, establishing an equal capital relationship. They aim to increase combined operating income by 5 billion yen in fiscal year 2026.

Daio Paper Corporation plans to acquire treasury stock with an upper limit of 13,000,000 shares and a total amount of up to 18,239,000,000 yen on March 19, 2026. This corresponds to 7.75% of the total number of issued shares.

Daio Paper will transfer part of its stake in specified subsidiary Forestal Anchile LTDA. and warehouse real estate at the Kawasaki plant to Daio Kaiun, and plans to acquire up to 17.33% of Hokuetsu Corporation shares (acquisition date: 2026-03-27).

For the third quarter of the fiscal year ending March 2026, net sales were ¥493,063 million (down 1.8% YoY), operating income was ¥18,092 million (up 165.4% YoY), and net income attributable to owners of parent significantly increased to ¥8,820 million.

Daio Paper Corporation will implement changes to directors, executive officers, division heads, and subsidiary representatives effective April 1, 2026, and resolve the appointment of new and incumbent director candidates at the Annual General Meeting of Shareholders on June 29.

Daio Paper Corporation announced a capital investment of 27.2 billion yen for the installation of new power generation equipment capable of handling high-chlorine fuel, and has received a decision on subsidy grant with a maximum amount of 8 billion yen.