Okayama Paper Industries Co.,Ltd.
3892・Standard Market・Pulp & Paper
Governance
A company with an Audit and Supervisory Committee (10 directors, including 5 members of the Audit and Supervisory Committee, 4 of whom are outside directors). It has established a voluntary Nomination Committee and Compensation Committee, both comprised of a majority of independent outside directors, and has also put in place an Internal Audit Office, a Compliance Committee, and a Sustainability Committee. The Board of Directors met 15 times per year (FY2024 results).
Risk Management
The company has established Risk Management Regulations and Emergency Response Regulations, with each department sharing responsibility for risk anticipation, prevention, and minimization. The Sustainability Committee, established in August 2024, identifies and evaluates sustainability-related risks and opportunities, and has built a framework in which it reports to and is overseen by the Board of Directors. Regarding climate change, the company has conducted scenario analyses under two scenarios (1.5°C and 4°C), and identified the introduction of carbon pricing and rising decarbonization costs upstream in the supply chain (both with a "large" impact) as the largest medium- to long-term risks.
Shareholder Returns
The policy targets stable and sustainable profit distribution based on a DOE guideline of 2.0% or higher; the annual dividend for FY2026 (ending May 2026) is ¥50 per share (interim ¥25 + year-end ¥25, an increase of ¥10 year-on-year), with a payout ratio of 28.2%. The same amount of ¥50 is forecast for FY2027 (ending May 2027).
Dividend Policy
Dividend amounts are determined based on a DOE guideline of 2.0% or higher, taking into account both the need to build up appropriate internal reserves for sustainable growth and the goal of stable, sustainable profit distribution. Dividends are paid twice a year (interim: resolved by the Board of Directors; year-end: resolved by the general shareholders' meeting). The annual dividend for FY2026 (ending May 2026) is ¥50 per share (interim ¥25 + year-end ¥25), with a payout ratio of 28.2% and total dividends of ¥232 million. The forecast for FY2027 (ending May 2027) is also an annual dividend of ¥50 (interim ¥25 + year-end ¥25), with a forecast payout ratio of 36.8%.
ESG
In February 2025, the company formulated its Sustainability Basic Policy, promoting reduction of environmental burden, human capital investment, and community coexistence centered on a resource-recycling business model using waste paper as raw material. On climate change, it has conducted 1.5°C and 4°C scenario analyses (Scope 1 and 2 results disclosed; reduction targets under consideration). Regarding human capital, the ratio of female employees is 9.8% (FY2030 target: 10.0%), the ratio of female managers is 0.0% (FY2030 target: 5.0%), and the company continues to hold Excellent Health Management Corporation 2025 certification (SME category). The lost-time injury frequency rate stands at 2.6 per million hours, exceeding the target (1.5), indicating improvement is needed.
Last updated: August 25, 2025