Signing of a Strategic Partnership Agreement with PLS Plantations Berhad, a Major Plantation and Agriculture Business in Malaysia.

Nippon Paper Industries Co.,Ltd.

Nippon Paper Industries Co.,Ltd. (President &President and Representative Director: Akira Sebe,head office : Chiyoda-ku, Tokyo, hereinafter referred to as“the Company”) and NIPPON PAPER GROUP&Nippon Paper Lumber Co., Ltd. (President &President and Representative Director: Shigeru Inoue,head office : Chiyoda-ku, Tokyo, “Nippon Paper Lumber Co., Ltd.”) is a subsidiary of PLS Plantations Berhad (CEO: Lee Hun Kheng,head office : Malaysia, hereinafter referred to as“PLS”), a major plantation and agricultural business in Malaysia. ) and Strategic Partnership Agreement (SPA). Based on the SPA, we will conduct a joint survey and evaluation over the next three years with the goal of starting a eucalyptus plantation project in Malaysia.

As a fast-growing and pest-resistant tree species, eucalyptus is widely used around the world as a raw material for industrial afforestation and paper making, but the number of afforestation cases in Malaysia is still limited. In this joint survey, we will combine the specialized technical knowledge on eucalyptus breeding that NIPPON PAPER GROUP has cultivated so far with PLS's local plantation areas to realize a joint eucalyptus plantation project with the goal of 2~30,000 hectares.

Through this joint study, we aim to establish a sustainable eucalyptus plantation model that is suitable for Malaysia's natural conditions and business environment, as well as biomass raw materials and fuel, including black pellets and biochar, in addition to paper wood chips and lumber applications. In addition to consider the possibility of using it, we will verify the creation of forest and environmental value, including carbon credits, through the understanding and evaluation of carbon sequestration amounts based on appropriate forest management.

NIPPON PAPER GROUP has accumulated proprietary technologies in plantation forest areas over many years in a total of approximately 160,000 hectares of company-owned forests in Japan and overseas. In particular, with regard to eucalyptus, we have the knowledge of breeding techniques, nursery management, material evaluation, afforestation operations, and productivity improvement that NIPPON PAPER GROUP, has cultivated through its eucalyptus planting business in Brazil. In addition, we have a track record in international forest management, including obtaining FSC certification, which certifies that it issustainable forest resources, and we would like to make further use of these technologies and knowledge. NIPPON PAPER GROUP has been engaged in overseas plantation business for more than 30 years, primarily in Brazil and Australia. With the aim of securing stable wood resources, the Group is now looking to expand its business, focusing on Asia due to its proximity to Japan. This initiative marks its first foray into overseas plantation business in Southeast Asia.

PLS is the largest industrial afforestation project in Johor and Pahang, and has knowledge of theplantation areassite infrastructure in Malaysia, practical afforestation operations, understanding of local systems and business operations. PLS has been engaged in afforestation and agriculture projects such as acacia, oil palm, and durian, but this time, using the technical knowledge of the NIPPON PAPER GROUP, we will be working on eucalyptus planting in earnest for the first time.

With the conclusion of the SPA, PLS, its subsidiary Aramijaya Agri & Agro Sdn. Bhd. (hereinafter referred to“AAA”). PLS and YPJ Holdings Sdn Bhd, a statutory foundation established by the Johor State Government), and the Company, Nippon Paper Lumber Co., Ltd., have signed a Joint Investigation Agreement (JRA).

JRA has set out the specific scope, methodology and implementation plan for the research and technical guidance provided by NIPPON PAPER GROUP, and plans to conduct joint surveys mainly in the test forests of Johor State, which are operated by AAA.

Through these initiatives, NIPPON PAPER GROUP and PLS will strive to promote sustainable plantation businesses with the aim of maximize forest valueand expanding the utilization possibilities in the biomassfield.

Signing ceremony

From left to right, AAA/Fauzee Director, PLS/CEO Lee,Nippon Paper Industries/Executive Officer Sato, General Manager of Kume Forestry and Materials, Japan Industries

[Comments from each company]

NIPPON PAPER GROUP

NIPPON PAPER GROUP is very pleased to be able to promote this initiative together through its partnership with PLS. Based on the paper and pulp business, NIPPON PAPER GROUP has been engaged inplantation business and forest resources in Japan and overseas. Under this partnership, we will utilize the technology and knowledge we have accumulated so far on eucalyptusplantation and forest management in accordance with the natural environment of Malaysia, and promote initiatives with an eye on future commercialization through collaboration with PLS

PLS

This joint survey marks an important milestone for PLS. We believe that the addition of NIPPON PAPER GROUP extensive expertise in forest management and resource development will help open up new possibilities for sustainable eucalyptus plantation development in Malaysia.

In addition to research, this collaboration aims to build a foundation for long-term value creation, including the Human Resource Developmentof local human resources and job creation, in addition to improving business value through ESG initiatives such as responsible forest management and management based on international forest certifications, as well as specialized technical knowledge.

PLS expects to further develop its collaboration with NIPPON PAPER GROUP in the future, and plans to evaluate the potential of downstream businesses, such as pellet production for biomass applications.

Reference: PLS Plantations Berhad

PLS is a leading forestry industry company in Malaysia focusing on sustainable forestry industry, agriculture and integrated agrofood development. The Group is committed to promoting technological innovation throughout itsplantation and agriculture businesses based on responsible land management.

PLS News Releases: https://plsplantations.my/bulletin/