Press ReleasesJoint Acquisition of a New Zealand Softwood Chip Production and Export Company

Nippon Paper Industries Co., Ltd.

Nippon Paper Resources Australia Pty Ltd (Managing Director: Hiroyuki Sasaki; Headquarters: Melbourne, Australia; "NPR"), a wholly owned subsidiary of Nippon Paper Industries Co., Ltd. (President: Akira Sebe; Headquarters: Chiyoda-ku, Tokyo; "NPI"), has entered into an agreement to jointly acquire all the shares of Marusumi Whangarei Company Limited ("MWC"), a New Zealand-based softwood chip production and export company currently jointly owned by Marusumi Paper Co., Ltd. and Marubeni Corporation.

The acquisition will be concluded in partnership with Pentarch Forestry Pty Ltd (Chairman: Malcolm McComb; Headquarters: Melbourne, Australia; "PF"), a diversified Australasian timber manufacturing and export company. Upon completion of the transaction, the planned shareholding ratio will be 70% for NPR and 30% for PF. The share transfer is expected to be completed by the end of February 2026.

Following the acquisition, NPR and PF plan to enter into a formal joint venture shareholders' agreement and jointly operate the business. MWC will subsequently be renamed NP Wood Fibre Company Limited.

NP Wood Fibre Company Limited ("NP Wood Fibre") will operate a major New Zealand softwood chip production and export business, leveraging off the country's abundant forest resources and positioning itself to meet the anticipated growth in global demand for softwood chips. For NPI, the transaction supports the diversification of procurement sources and the establishment of a stable supply of softwood resource for the Japanese market.

In collaboration with PF, NP Wood Fibre will also market softwood chips across the Asian market, thereby enhancing the revenue potential of the Nippon Paper Group's timber-related businesses. Furthermore, NP Wood Fibre will combine the Nippon Paper Group's expertise in hardwood plantation management, woodchip production and export operations in Brazil and Australia with PF's capabilities across lumber, woodchip, and other timber-related businesses.

With the extensive sales and export experience of both NPI and PF in Australia and New Zealand, the newly established NF Wood Fibre joint venture is well positioned to fully leverage these combined strengths and to further expand the forestry and timber businesses of both partners.