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May June Jul ARENGO Consolidated Financial Results for the 1st quarter of the year ending March 2027 August 5 , 2026 Rengo Co. , Ltd. ( TSE : 3941 ) Please refrain from copying , using , or disclosing all or part of the information contained in this document to third parties without permission . © Rengo Co. , Ltd. All rights reserved .
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Q1 / FY2026 Consolidated financial results for the 1st quarter of the year ending March 2027 Basic Policy on Selection of Accounting Standards • The Rengo Group applies Japanese accounting standards. • We will address the application of International Financial Reporting Standards (IFRS) appropriately after taking into consideration various circumstances in Japan and abroad. 2
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Q1 / FY2026 Consolidated income statement (billion yen) 売上高 Apr.-June 2025 Apr.-June 2026 Y/Y (%) Diff. Net sales 249.4 275.8 110.6 + 26.4 Operating profit 10.4 17.9 172.5 + 7.5 Ordinary profit 10.5 18.9 180.3 + 8.4 Extraordinary gain/loss - 0.1 0.2 - + 0.3 Profit attributable to owners of parent 6.0 11.6 192.8 + 5.6 Main factors underlying extraordinary gain and loss (billion yen) (Extraordinary gain) (Extraordinary gain) Gain on sales of investment securities 0.4 (Extraordinary loss) (Extraordinary loss) Loss on sales/retirement of noncurrent assets 0.1 Loss on sales/retirement of noncurrent assets 0.2 Loss on termination of retirement benefit plan 0.1 Apr.-June 2025 Apr.-June 2026 3 Overview of business performance • Net sales and profit increased due to product price revisions, despite rising fixed costs. 1. Overview of financial performance and business environment Consolidated financial results for the 1st quarter of the year ending March 2027
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Q1 / FY2026 Net sales and operating profit by segment (billion yen) Net Sales Operating profit 資本的支出 Apr.-June 2025 Apr.-June 2026 Y/Y (%) Diff. Apr.-June 2025 Apr.-June 2026 Y/Y (%) Diff. Paper and Packaging- Related Business 130.7 138.6 106.0 + 7.8 6.9 10.1 146.7 + 3.2 Flexible Packaging- Related Business 49.1 56.1 114.1 + 6.9 2.7 5.8 214.2 + 3.1 Heavy Duty Packaging- Related Business 11.3 12.9 113.7 + 1.6 0.5 0.7 144.8 + 0.2 Overseas Business 48.8 57.9 118.7 + 9.1 - 0.1 0.7 - + 0.8 Other Businesses 9.5 10.3 109.5 + 0.8 0.4 0.6 149.3 + 0.2 Consolidated total 249.4 275.8 110.6 + 26.4 10.4 17.9 172.5 + 7.5 *Includes inter-segment transaction eliminations in consolidation adjustments. Due to rounding differences, "Diff." figures may not match the calculated values. 4 2. Segment performance summary Consolidated financial results for the 1st quarter of the year ending March 2027
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Q1 / FY2026 Apr.-June 2026 Segment sales billion yen 138.6 Containerboard 8%Other paperboard 4% Corrugated board 8% Corrugated boxes / folding cartons 80% Apr.-June 2026 Segment sales Consolidated net sales 275.8 billion yen 138.6 Paper and Packaging-Related Business 50% Flexible Packaging- Related Business 20% Heavy Duty Packaging-Related Business 5% Overseas Business 21% Other Businesses 4% billion yen 5 Net sales breakdown by product 3. Overview of Paperboard and Packaging-Related Business Segment sales composition ratio of total consolidated sales Business environment • Net sales and profit increased due to product price revisions, despite rising fixed costs and logistics expenses and other factors. Consolidated financial results for the 1st quarter of the year ending March 2027
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Q1 / FY2026 6 4. Paperboard and corrugated production volume Source (Industry): Japan Paper Association Source (Industry): Japan Corrugated Case Association Consolidated financial results for the 1st quarter of the year ending March 2027
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Q1 / FY2026 Apr.-June 2026 Segment sales (Flexible packaging) 56.1 (Heavy duty packaging) 12.9 Paper and Packaging-Related Business 50% Flexible Packaging-Related Business 20% Heavy Duty Packaging-Related Business 5% Overseas Business 21% Other Businesses 4% Apr.-June 2026 Consolidated net sales billion yen 275.8 billion yen billion yen 7 Business environment of flexible packaging • Net sales and profit increased due to product price revisions and an acceleration in demand for our products on the back of an uncertain outlook following an escalation of tensions in the Middle East. Business environment of heavy-duty packaging • Net sales and profit increased due to an acceleration in demand for our products on the back of an uncertain outlook following an escalation of tensions in the Middle East. 5. Overview of Flexible and Heavy Duty Packaging-Related Business Segment sales composition ratio of total consolidated sales Consolidated financial results for the 1st quarter of the year ending March 2027 28.2 28.6 30.1 28.5 29.9 30.4 31.8 29.2 44.6 44.7 47.9 44.4 49.1 3.2 2.4 3.4 1.3 4.8 2.8 5.3 2.8 2.3 2.3 4.3 2.2 5.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY3/2023 FY3/2024 FY3/2025 FY3/2026 Sales and profit margins of Flexible Packaging-Related Business billion yen, %
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Q1 / FY2026 Apr.-June 2026 Segment sales billion yen 57.9 Corrugated packaging / nonwoven products 8% Flexible packaging 12% Heavy duty packaging 79% Apr.-June 2026 Segment sales Consolidated net sales 275.8 billion yen 57.9 Paper and Packaging-Related Business 50% Flexible Packaging- Related Business 20% Heavy Duty Packaging-Related Business 5% Overseas Business 21% Other Businesses 4% billion yen 8 Business environment • Net sales and profit increased due to an increase in the number of consolidated subsidiaries and strong sales of heavy duty packaging materials in North America and Southeast Asia. Net sales breakdown by product 6. Overview of Overseas Business Segment sales composition ratio of total consolidated sales Consolidated financial results for the 1st quarter of the year ending March 2027
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Q1 / FY2026 (billion yen) Paperboard and Packaging-Related Business Personnel expenses -1 Other costs -0.4 City gas +0.2 Fuel oil -0.1 Freight -0.2 Electricity price, etc. -0.1 Subsidiary materials/Chemicals -0.1 Corrugated products +3.5 Paper/paperboard +0.1 Paper/paperboard +0.4 Corrugated products +0.8 Flexible / Hevy Duty / Overseas / Others Volume / prices +7.6 Variable costs -3.5 Fixed costs, etc. -1 Volume / prices +0.8 Variable costs -0.4 Fixed costs, etc. -0.2 Flexible packaging +0.3 Heavy duty packaging +0.6 +3.2 +4.3 10.4 13.6 17.9 + 3.6 + 1.2 0.2 0.0 + 3.1 0.2 + 0.9 + 0.1 - 1.4 - 0.3 - 0.1 Previous operating profit Fixed costs Energy/other costs Depreciation / amortization Prices Volume Cost reduction Raw material costs Subtotal Flexible packaging Heavy duty packaging Overseas business Other businesses, etc. Current operating profit billion yen billion yen Apr.-June 2025 Apr.-June 2026 Y/Y (%) Diff. Containerboard 1,000 tons 571 578 101.2 + 7 Corrugated board million sqm 1,070 1,101 102.8 + 31 OCC(1) JPY/kg from 5 to 8 from 5 to 8 100.0 Flat Dubai crude oil USD/bbl 67.2 95.1 141.6 + 27.9 0.2 bn. yen 0.2 bn. yen - - Foreign exchange JPY/USD 144.5 159.4 110.3 + 14.9 0.2 bn. yen 0.2 bn. yen - - Containerboard(2) JPY/kg from 96 to 98 from 106 to 108 110.3 + 10 Source: (Grade D medium) Corrugated board(2) JPY/sqm from 81 to 82 from 81 to 82 100.0 Flat (C'5) * Crude oil price changes impact profit or loss after around six months. Product price- related Production Raw material and fuel price-related Annual impact of 1 yen fluctuation (benefit from yen appreciation) (1) Nikkei Inc. purchased price of collected waste paper by wholesellers, Tokyo (2) Nikkei Inc. Broker's wholesale price, Tokyo Key information on factors affecting changes in operating profit Annual impact of $1 fluctuation* 9 7. Factors for increase/decrease in operating profit (Y/Y differences) Consolidated financial results for the 1st quarter of the year ending March 2027
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Q1 / FY2026 Major capital investments planned for this fiscal year • Rengo Co., Ltd. Takefu Plant: Renovation • Rengo Co., Ltd. Yashio Mill: Modification of the press section of the No. 1 containerboard machine (corrugated medium) • Taiko Paper Mfg., Ltd.: Facilities related to bioethanol business • Marusan Paper Mfg. Co., Ltd.: LNG boiler • Howa Sangyo Co., Ltd.: Acquisition of Fukuoka Plant relocation site • Sanyo Jidosha Unso Co., Ltd.: Construction of Shin-Atsugi branch • Tri-Wall Packaging (Thai) Ltd.: Equipment upgrades 10 8. Trends in capital expenditures and depreciation Consolidated financial results for the 1st quarter of the year ending March 2027 Result for Q1 Result for Q1
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Q1 / FY2026 Disclaimer • The description of the business plan and the financial forecasts is based on the information currently available. Any forward looking information is not a guarantee of future performance. 11 Full-year forecast for the year ending March 2027 There are no revisions from the most recently disclosed performance forecast.
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Q1 / FY2026 Y/Y (%) Consolidated Balance Sheets Equity capital 489.3 bl. Yen 485.0 bl. Yen 99.1 -4.3 bl. Yen Interest bearing debt 484.0 510.0 105.4 +26.0 Total assets 1,313.1 1,350.0 102.8 +36.9 Debt to equity ratio 1.0 x 1.1 x Net debt to equity ratio 0.7 x 0.9 x Shareholders' equity ratio 37.3 % 35.9 % Consolidated Statements of Income Net sales 1,008.3 bl. Yen 1,090.0 bl. Yen 108.1 +81.7 bl. Yen Operating profit 37.1 46.0 124.0 +8.9 Ordinary profit 37.4 44.0 117.6 +6.6 Profit attributable to owners of parent 21.0 31.0 147.6 +10.0 Depreciation and amortization 59.0 64.0 108.5 +5.0 EBITDA 99.8 113.0 113.2 +13.2 Financial KPI ROE 4.4 % 6.4 % Net debt to EBITDA ratio 3.9 x 3.8 x Difference FY3/2026 results FY3/2027 forecasts 12 1. Summary of financial indicators Full-year forecast for the year ending March 2027
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Q1 / FY2026 Outlook for external environment • The Japanese economy is expected to be supported by a gradual recovery in employment and income conditions, as well as the effects of various policies. • However, uncertainty in the global economy is increasing, and it is necessary to pay close attention to developments such as the situation in the Middle East, fluctuations in financial and capital markets, and impacts of U.S. policy trends. Outlook for our group • Raw material, logistics, and labor costs are expected to increase. • Product price revisions agreed in the previous fiscal year are expected to support earnings. Consolidated income statement (billion yen) 売上高 FY3/2026 results FY3/2027 forecasts Y/Y (%) Diff. Net sales 1,008.3 1,090.0 108.1 + 81.7 Operating profit 37.1 46.0 124.0 + 8.9 Ordinary profit 37.4 44.0 117.6 + 6.6 Profit attributable to owners of parent 21.0 31.0 147.6 + 10.0 13 2. Outlook for profit and business environment Full-year forecast for the year ending March 2027
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Reproducing or redistributing all or part of the information contained in this document without permission is prohibited. © Rengo Co., Ltd. All rights reserved. Nakanoshima Central Tower, 2-2-7, Nakanoshima, Kita-ku, Osaka 530-0005, Japan https://www.rengo.co.jp Rengo Co., Ltd. Disclaimer The business strategies, performance forecasts, and other content included in this material are based on information available at the present time. The performance forecast figures and other information provided do not guarantee the realization of future plans.