INVESTORSFY2023 Assessment of Board Effectiveness

[Summary of Results of Analysis and Evaluation of the Effectiveness of the Board of Directors as a Whole]

Nippon Paper Industries Co., Ltd. ("The Company") conducts self-assessment and analysis of the effectiveness of its Board of Directors ("BOD") with the aim of improving its functions.

　The self-assessment and analysis were conducted with the advice of an external agency as follows: A questionnaire was conducted in December 2023 for all Directors and Audit & Supervisory Board Members constituting the BOD. Their responses were submitted directly to the external agency to ensure the anonymity of the respondents.

　The external agency compiled a report summarizing the survey results, based on which the Board of Directors analyzed, discussed, and assessed its effectiveness at its regular meeting in April 2024. Results of analysis and assessment are as summarized below:

1. Results of Efforts in FY2023 Based on Tasks Set in FY2022

Tasks	Results
Even in the midst of a severely changing business environment, the Board of Directors will further discuss progress, issues, and future strategies to achieve the goals of the Medium-Term Business Plan 2025.	The Company has ensured that all monthly business reports to the BOD members include how much progress was made toward the goals of the Medium-Term Business Plan ("Medium-Term Plan"). The foundation for the BOD discussions was maintained through continued efforts to have in-depth discussions on management issues between the president and external directors at the Personnel & Remuneration Advisory Committee meetings, in addition to initiatives to enable Directors and Audit & Supervisory Board Members to attend Management Executive Committee meetings, which provide monthly reports, as well as the Group Management Strategy Committee meetings. Active exchanges of opinions, including questions and answers were made to have discussions on more effective ways to address business challenges using the backcasting approach. It was decided that the General Manager of the Planning Division will present a quarterly summary report on the progress of the Medium-Term Plan and discuss progress, issues, and future strategies of the Plan. In FY2023, it was taken up as an agenda item at the regular Board of Directors meetings held in August, November, and February. Discussions were deepened on materiality to attain the Medium-Term Business Plan 2025, thereby achieving the 2030VISION.

Tasks

Results

Even in the midst of a severely changing business environment, the Board of Directors will further discuss progress, issues, and future strategies to achieve the goals of the Medium-Term Business Plan 2025.

The Company has ensured that all monthly business reports to the BOD members include how much progress was made toward the goals of the Medium-Term Business Plan ("Medium-Term Plan").

The foundation for the BOD discussions was maintained through continued efforts to have in-depth discussions on management issues between the president and external directors at the Personnel & Remuneration Advisory Committee meetings, in addition to initiatives to enable Directors and Audit & Supervisory Board Members to attend Management Executive Committee meetings, which provide monthly reports, as well as the Group Management Strategy Committee meetings.
Active exchanges of opinions, including questions and answers were made to have discussions on more effective ways to address business challenges using the backcasting approach.
It was decided that the General Manager of the Planning Division will present a quarterly summary report on the progress of the Medium-Term Plan and discuss progress, issues, and future strategies of the Plan. In FY2023, it was taken up as an agenda item at the regular Board of Directors meetings held in August, November, and February. Discussions were deepened on materiality to attain the Medium-Term Business Plan 2025, thereby achieving the 2030VISION.

2. FY2023 Evaluation Results and FY2024 Tasks

(1)FY2023 Evaluation Results

The questionnaire was conducted on the composition, operation, discussion, support system, training of the Board of Directors and management of the Personnel & Remuneration Advisory Committee, and the survey results were analyzed and comparisons drawn from surveys conducted on other companies provided by an external agency. The analysis results were generally positive, confirming the perception that the effectiveness of the Board of Directors as a whole has been maintained.

The following comments were shared as main opinions leading to the recognition of issues:

Items	Key Opinions
Discussions at the BOD meetings	Information is provided to outside directors in a timely manner, and constructive discussions are taking place based on such information. Because we are in an era of rapid and disruptive changes, it is desirable to deepen awareness and understanding through discussion on risk as well as the Nippon Paper Group's long-term direction and strategies, thereby leading to business transformation.
Training for Directors and Audit & Supervisory Board Members	It would be better to obtain information on new matters for consideration, etc., with expert perspectives added. Site inspections by outside directors and exchanges of opinions with site executives should continue.

(2)Tasks for FY2024
Evaluate the current status to gauge progress, and discuss the long-term direction for each of the themes of the Group's initiatives in order to achieve the 2030VISION by enhancing the Group's business model called "Three Circulations.

3. Initiatives and results of previous years

Year of Initiatives	Tasks	Results of Initiatives
2016	Advance distribution of Board meeting materials	Materials were distributed, to the extent possible, one week prior to the meeting date to facilitate discussion.
2016	Review of content of agenda items for Board meetings	Operations based on the Rules of the Board of Directors (amended in April 2016) in compliance with the Corporate Governance Code have been initiated.
2017	Enhancement of items reported to the Board of Directors	Ensure regular opportunities for the Board of Directors to discuss the progress of the medium-term business plan.
2017	Ensure training opportunities for board members	Training for board members is conducted annually.
2018	Improve Board of Directors reporting	Regarding the performance report, the presentation of materials and the method of reporting were devised.
2019	Strengthen support for outside directors	Enhanced prior explanations, reflected content of discussions in Board meeting minutes, and strengthened the provision of information.
2020	Expansion of items reported to the Board of Directors	Expanded discussion from a medium to long-term perspective at Board meetings.
2021	Enhancement of reporting items, ensuring more time for deliberation, and improving the clarity of materials	Quarterly business issue reports were initiated.
2022	Follow-up on important matters, expand discussions, and increase opportunities for the exchange of opinions between outside directors and representative directors	Reported on the progress of important projects to the Board of Directors, etc., and strengthened follow-up. Ensured that outside directors and the President have the opportunity to exchange opinions at Personnel & Remuneration Advisory Committee meetings.