Nippon Paper Industries Corp (3863) Meeting with the president: Management signals strong commitment to balance-sheet reform

Research evidence excerpt

Nippon Paper Industries Corp (3863) Meeting with the president: Management signals strong commitment to balance-sheet reform

J P M O R G A N Asia Pacific Equity Research

15 July 2026

Nippon Paper Industries Corp

(3863) Underweight

3863.T, 3863 JP

Meeting with the president: Management signals strong Price (14 Jul 26):¥1,360

commitment to balance-sheet reform Price Target (Dec-26):¥1,000

At the July 15 meeting, President and Representative Director Akira Sebe Japan Equity Research

explained that the company will pursue balance-sheet optimization, decisive

Cosmetics and Personal Care /

structural reform, and higher profitability to achieve the capital efficiency Paper and Packaging

improvements targeted in its new Medium-Term Management Plan 2030 AC Akiko Kuwahara

(FY2026-30), announced on May 28. We see a shift versus the past in

(81-3) 6736-8617

management’s stance toward delivering the medium-term plan, reflected in (1) a akiko.kuwahara@jpmorgan.com

strong commitment to reducing assets and liabilities and (2) alternative measures JPMorgan Securities Japan Co., Ltd.

already in place for unexpected developments. We will monitor the pace of

balance-sheet reform.

• Summary of management’s responses to the main questions: (1) What

balance-sheet optimization involves: This involves reducing assets that are

excessive relative to sales and cutting liabilities. The company will consider

every possible measure to consolidate assets. This is closely tied to both

structural reform and the earnings structure. (2) The future shape of Nippon

Paper’s business: the company aims to develop forest-resource-based

businesses across the entire value chain, from upstream to downstream. Also,

although graphic paper demand will decline, it aims to preserve the culture of