We are pleased to announce that the KPP Group celebrated its 100th anniversary in November 2024. We would like to express our heartfelt gratitude to all those who have supported our growth over the years—our predecessors who laid the foundation of our business, our employees, and our valued business partners. To show our appreciation to our shareholders, we paid a commemorative dividend of ¥5 in addition to the regular dividend. Furthermore, starting from March 2025, we introduced a shareholder benefit program through which Book Gift Cards are presented to our shareholders. Recently, I came across a saying that expands upon the well-known proverb “Seeing once is better than hearing a hundred times” (commonly rendered in English as “Seeing is believing” or “A picture is worth a thousand words”). It goes, “Reading once is also better than hearing a hundred times.” I sincerely hope that reading will open up new worlds of knowledge and enrich the lives of our shareholders. At the same time, we remain committed to creating a positive cycle in which the profits generated through our business activities are shared with society and contribute to cultural development, helping to sustain our long-term growth.
Our long-term management vision GIFT+1 2024, launched in the fiscal year ended March 2017, was a nine-year business enhancement plan culminating in our 100th anniversary in 2024. Among its key priorities were our stock market listing and inorganic growth through overseas M&A, which successfully transformed the company from a domestic organization rooted in Japan into a truly global enterprise with operations spanning 46 countries and regions and 194 cities worldwide.
Since the beginning of the 21st century, the demand structure for paper has undergone significant change. With the advance of digitalization and declining birthrates, demand for graphic paper has decreased, while packaging and hygiene-related paper, which are linked to everyday life, have continued to grow. For our company, whose business had long centered on graphic paper, M&A served as an effective means to expand our business areas and simultaneously restructure our portfolio. The acquisition of Spicers in Australia and Antalis in France brought us leading sales networks and scale in the Oceania and European regions, respectively. Both companies have strong positions in the packaging and visual communications businesses, and we expect to generate synergies within the KPP Group.
This fiscal year marks the start of our new long-term vision, GIFT 2030, which spans the Fourth and Fifth Medium-Term Business Plans. In the pulp and paper industry, manufacturers are advancing research in wood chemistry and exploring new applications for pulp, ranging from cellulose nanofibers and bioethanol to energy and pharmaceuticals. As a result, the traditional broad and cohesive partnerships between paper manufacturers and paper distributors are expected to shift toward more selective, specialized “point-to-point” collaborations. During the Fourth Medium-Term Business Plan, we anticipate continued restructuring within Japan’s domestic paper distribution sector, while overseas we prioritize entering the North American market through M&A and advancing the restructuring of our business in China.
With the launch of GIFT 2030, I have passed the baton of CEO to President Sakata. Sakata played a central role in the M&A of Spicers and Antalis, and later served for three years as CFO of Antalis, where he oversaw finance and post-merger integration. With his broad global perspective and keen insight into business fundamentals, I am confident that he will foster a corporate culture where all employees embrace and embody the spirit of GIFT 2030.
Looking ahead, we will continue to enhance corporate value by contributing to a sustainable, circular economy through our recycling-oriented business model. At the same time, we will strive to meet the expectations of our stakeholders by supporting the growth of existing customers and expanding our customer base through M&A. We sincerely ask for your continued support and encouragement.
October 24, 2025
