June 12, 2002

Nippon Unipac Holding Group Creates New Management Infrastructure

Nippon Unipac Holding

Tokyo, June 12, 2002 - Nippon Unipac Holding is currently in the process of establishing a new management infrastructure system aimed at maximizing the company's management efficiency. The new management infrastructure system, in which the company will invest approximately 3.5 billion yen, will also include a new finance and accounting system.
This new, unified Group-wide finance and general accounting system is based on R/3, a packaged ERP software system developed by SAP. The use of this new system will make it possible to unify Group accounting. As part of the new overall management infrastructure system, the company will also introduce a unified production control system and a management accounting system developed by Group member company Nippon Paper Industries Co., Ltd., as part of its on-going systems unification project.
This systems unification project will make it possible for the company to proceed more effectively with management plans for expansion, including related mergers and reorganization of its paper and paperboard operations scheduled to start in April of next year. Management systems unification will also help to increase the company's mobility in carrying out it's strategic plans for further reorganization and expansion overseas by means of M&A and technical alliances.
The effects of the new management systems unification will include the following:
1. Centralization of management functions
The new infrastructure system will make it possible to raise the standard of management operations and bring together Group-wide management function skills. It will also become possible to eliminate duplicated management personnel. The company plans to minimize costs connected with management information system maintenance.
2. Unification of Group funds accounting
By utilizing the Cash Management System (CMS), it will be possible to procure funds at the most advantageous rates for the Group as a whole and to lower Group finance costs.
3. Enhancement of management information and its shared use
Through Group-wide introduction and use of the Nippon paper Economic Profit (NEP) system (Nippon Paper Industries EVA®) that Nippon Paper Industries first introduced in fiscal year 2001 ended March 31, 2001 and the use a unified accounting system, it will be possible to reduce the amount of effort necessary to consolidate accounts and to issue consolidated quarterly statements. In addition, the company will use the services of Data Warehouse (DWH) to enhance the quality of consolidated database management information for unified management operations.
[Systems Introduction Schedule]

Systems Introduction Schedule

Note: The development and introduction of the new production control and accounting control systems for Nippon Paper Industries have already been accomplished.
In addition, concerning the Group paper and cardboard company sales systems, the company plans to use the PRIME System (a new paper sales management system) that is currently under development.