Analyst Meeting Presentation Materials for Fiscal Year Ended March 31, 2016

Analyst Meeting Presentation Materials for Fiscal Year Ended March 31, 2016 May 30, 2016 Translation This document is an English translation of the original Japanese document dated May 30, 2016 and is only for reference purposes. In the event of any discrepancy between the original Japanese document and this translated document, the Japanese document shall prevail. 1

1. Changes in External Environment 2. Consolidated Financial Results for the Fiscal Year Ended March 31, 2016 3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2017 Note: Fiscal year (FY) represents 1-year period from April 1 to Mar 31 of the following year. DAIO PAPER CORPORATION 2

Changes in External Environment (1) JPY/USD(TTM) 125.0 A)Exchange rate at end of period From Apr, 2015, Australia L-chip is imported at rate of US$/BDT instead of A$/BDT. 250.0 USA N-chip(US$/BDU_left axis) Australia L-chip(A$/BDT_left axis) USA N-chip(yen/ kg _right axis) Note: N-chip are softwood chip, while L-chip are hardwood chip. B)Price of imported woodchip Australia L-chip(yen/ kg _right axis) 20.0 18.0 100.0 200.0 16.0 75.0 150.0 14.0 12.0 50.0 100.0 (Source: In-house investigation) 10.0 25 20 C)Price of recovered paper Old newspapers,over-the-counter price(yen/kg) Old corrugated containers,over-the-counter price(yen/kg) Old newspapers, export(yen/kg) Old corrugated containers, export(yen/kg) 150 100 D)Price of coal and crude oil 15 10 15 50 Dubai crude oil price(usd/barrel_left axis) 5 10 (Source: Ministry of Finance Japan Statistics, Paper Recycling Promotion Center) 0 '09 Apr Sep '10 Apr Coal(USD/tonne_left axis) Coal(yen/kg_right axis) Sep '11 Apr Sep '12 Apr Sep '13 Apr (Source: The Nikkei GCI-NC) Sep '14 Apr Sep '15 Apr Sep '16 Mar 0 DAIO PAPER CORPORATION 3

Changes in External Environment (2) (Thousand tonnes) 8,000 7,000 Quarterly Trend of Domestic Demand for Paper and Paperboard Domestic Shipment (Japan Paper Association) + Imports (Ministry of Finance Japan Trade Statistics) = Domestic Demand Domestic shipment, total Imports, total Paper Paperboard (Take Apr-Jun 2009 as 100% _right axis) (%) 150 6,000 125 5,000 4,000 100 3,000 2,000 75 1,000 0 (Source: Japan Paper Association Statistics, Ministry of Finance Japan Trade Statistics) 50 DAIO PAPER CORPORATION 4

Changes in External Environment (3) 110.0 105.0 Trends of Prices of Major Products (Apr 2009=100) Facial tissue Toilet tissue Kraft liner Coated paper (A2 grade) 100.0 95.0 90.0 85.0 80.0 Apr 2009 Sep Apr 2010 Sep Apr 2011 Sep Apr 2012 Sep Apr 2013 Source: The Nikkei, SRI(retail tracking research) data Sep Apr 2014 Sep Apr 2015 Sep Mar 2016 DAIO PAPER CORPORATION 5

1. Changes in External Environment 2. Consolidated Financial Results for the Fiscal Year Ended March 31, 2016 3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2017 (In this document, figures are rounded off to the nearest 0.1 billion yen.) DAIO PAPER CORPORATION 6

Business Results by Segment(Paper & Paperboard) 3.4% increase in net sales, 4.0% increase in operating income (year-on-year) Net sales Operating income % Operating margin 278.0 283.5 290.0 300.0 3.9% 4.0% 3.5% 3.5% 20.0 <Topic: Paper Business> (billion yen) 10.9 11.4 10.1 10.5 FY2012 FY2013 FY2014 FY2015 Year-on-year change Volume Amount In the face of severe business environment as domestic paper demand continues to decrease, this cooperative initiative between major regional distributors across Japan and Daio Paper 0.0Corporation shall open up a new era for the industry by constructing a new paper sales business model. For the objective of monitoring the operating performance of each business segment more appropriately, corporate expenses have been allocated to each business segment, for figures after FY2014 (i.e. FY2014 and FY2015 above). However, figures before FY2014 (i.e. FY2012 and FY2013) are figures before allocation of corporate expenses. DAIO PAPER CORPORATION 7 10.0 Factors Newsprint Flat growth in number of newspaper pages; decrease in circulation Printing paper Increased sales of higher value-added products; improvement of product mix; effect of previous period s upwards price adjustment Containerboard & Corrugated Container (Launched Nov 17, 2015) A Paper Regional Distributors Partnership consisting of 33 major paper distributors across Japan. Expansion of fields such as internet shopping and processed food; start of operation of new machine at Iwaki Daio Paper

0 0 0 Business Results by Segment(H&PC) 8.2% increase in net sales, 12.6% increase in operating income (year-on-year) Net sales 120.7 5.1 4.2% Operating income 135.0 7.2% 146.8 9.7 9.2 % Operating margin 6.3% 158.9 10.4 FY2012 FY2013 FY2014 FY2015 6.5% 20.0 <Topic: Overseas Business> Baby disposable diapers China Thailand 10.0 Indonesia Increased production lines in order to increase sales of premium zone diapers. Reduced logistics cost through expansion of warehouse. (billion yen) Dec 2015: Completed construction of new factory Mar 2016: Commenced sales of locally manufactured diapers Others Started full-scale sales of adult disposable diapers in South Korea, China and Taiwan. Opened representative offices of Elleair International Thailand in Vietnam and Malaysia where there are strong demand (Jan 2016) 0.0 Opened representative office of Daio Paper in Taiwan to proceed with plans to offer more comprehensive product category range (Apr 2016) Paper (e.g. facial tissue, toilet tissue) Year-on-year change Volume Amount Factors Enlivenment of domestic market via a shift to sales of value-added products; strong sales of Elleair namebrand facial tissue Adult disposable diapers Increased sales of high performance pads, in particular night-use; revamp of Attento Sarasara Pants Baby disposable diapers Full revamp in Spring 2015 with a focus on skin-friendliness; sales at appropriate price Wet tissue and wipes Strong sales of new toilet cleaning wipes Kirekira! launched in Fall 2015 and others Feminine hygiene products Improved in-store placement of elis nighttime pads; sales at appropriate price Overseas business Favorable sales in South Korea, China, Thailand and Indonesia / Decrease in Russia due to ruble s drop China: Growth in sales of pants type and super premium zone diapers Thailand and neighbouring countries: Growth in sales of economy zone diapers GOO.N FRIEND For the objective of monitoring the operating performance of each business segment more appropriately, corporate expenses have been allocated to each business segment, for figures after FY2014 (i.e. FY2014 and FY2015 above). However, figures before FY2014 (i.e. FY2012 and FY2013) are figures before allocation of corporate expenses. DAIO PAPER CORPORATION 8

Summary of Consolidated Financial Results New record high net sales Business Results FY2014 Results FY2015 Results Variance (Unit: billion yen, %) Net sales % Net sales % Variance % Net sales 450.2 474.1 23.9 5.3 Operating income 21.8 4.8 24.3 5.1 2.5 11.6 Ordinary income 21.8 4.8 21.3 4.5-0.5-2.4 Profit attributable to owners of parent 13.2 2.9 14.6 3.1 1.4 10.5 Depreciation 27.2 27.0-0.2-0.7 Capital expenditures 31.6 37.3 5.7 18.0 Net interest-bearing debt 292.5 281.5-11.0 Net D/E ratio 1.9 times 1.7 times -0.2 Equity ratio 23.7 % 24.9 % 1.2 Exchange rate: 109.8 yen/usd 120.2 yen/usd 10.4 yen/usd (Average rate during term) Dubai crude oil: 84 USD/barrel 46 USD/barrel -38 USD/barrel (Average rate during term) DAIO PAPER CORPORATION 9

Increase/Decrease of Consolidated Ordinary Income 30 25 20 15 10 5 0 Real increase of 2.2 billion yen if effect of subsidy income is excluded -0.5 billion yen (Year ended Mar 31, 2015: 21.8 billion yen Year ended Mar 31, 2016: 21.3 billion yen) (billion yen) 35 Year ended Mar 31, 2015 (Ref: Forecast released 25 Nov, 2015) Production increase / Cost reduction (+2.7) Increase factors, total:10.4 billion yen Decrease factors, total: 10.9 billion yen Increase in Increase in price Increase in unit price Others of raw materials sales /fuels Subsidy volume (+2.2) (+1.5) (-3.1) income (+4.0) (-2.7) Others (-5.1) 21.8 21.3 Production increase/ Cost reduction (+2.0) Increase in sales volume (+4.9) Amount Increase in unit price (+4.3) Major factors Year ended Mar 31, 2016 20.0 Production increase/cost reduction 2.7 Production increase +1.8, energy-saving +1.4, improved yield and raw materials composition +0.6, increase in fixed costs due to start of operation of new machine -1.1 Increase in sales volume 4.0 Paper&Paperboard +1.2, H&PC +2.8 Increase in unit price 2.2 Paper&Paperboard +1.9, H&PC +0.3 Increase in price of raw materials/fuels (-6.5) Others 1.5 Diversification of financing methods +1.1 Increase in price of raw materials/fuels -3.1 Woodchip -3.5, recovered paper -3.5, pulp -0.6, heavy oil +1.4, chemicals +1.3, packaging materials +1.2, coal +0.6 Subsidy income -2.7 Subsidy income from Fukushima prefecture included previous fiscal year Others -5.1 Foreign exchange loss on loans payable of foreign subsidiaries -2.1, increase in logistics costs due to sales increase and others -2.7 Increase/decrease of ordinary income, total -0.5 DAIO PAPER CORPORATION 10 Others (+1.1) Subsidy income (-3.0) Others (-4.6)

1. Changes in External Environment 2. Consolidated Financial Results for the Fiscal Year Ended March 31, 2016 3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2017 DAIO PAPER CORPORATION 11

Summary of Consolidated Financial Forecast Business Results FY2015 Results FY2016 Forecast Variance (Unit: billion yen, %) Net sales % Net sales % Variance % Net sales 474.1 490.0 15.9 3.4 Operating income 24.3 5.1 25.0 5.1 0.7 2.8 Ordinary income 21.3 4.5 22.0 4.5 0.7 3.5 Profit attributable to owners of parent 14.6 3.1 13.0 2.7-1.6-10.9 Depreciation 27.0 30.0 3.0 11.1 Capital expenditures 37.3 34.0-3.3-8.9 Net interest-bearing debt 281.5 278.0-3.5 Net D/E ratio 1.7 times 1.6 times -0.1 Equity ratio 24.9 % 26.5 % 1.6 Notes Exchange rate: 120.2 yen/usd 110.0 yen/usd -10.2 yen/usd (Average rate during term) Dubai crude oil 46 USD/barrel 45 USD/barrel -1 USD/barrel (Average rate during term) Includes gain on sales of investment securities of around 2.5 billion yen (net of tax; original amount 3.7 billion yen) DAIO PAPER CORPORATION 12

Business Results Forecast by Segment Net sales 500.0 (Unit: billion yen) Operating income 50 400.0 40 300.0 30 200.0 20 100.0 10 0.0 Net sales Results of Forecast previous year First half セグメント Paper & Paperboard Operating income Results of Forecast previous year Net sales Operating income Net sales Operating income Net sales Operating income Results of previous year Forecast Results of previous year Forecast Results of previous year Forecast Results of previous year Forecast Operating margin Second half Net sales Operating income Operating margin Net sales Full year Operating income Operating margin 145.0 5.0 3.4% 149.0 7.0 4.7% 294.0 12.0 4.1% (Results of previous year) 146.3 4.5 3.1% 153.7 6.0 3.9% 300.0 10.5 3.5% H&PC First half Second half Full year 83.0 3.0 3.6% 97.0 8.0 8.2% 180.0 11.0 6.1% (Results of previous year) 76.4 4.2 5.5% 82.5 6.2 7.5% 159.0 10.4 6.5% Other (incl. adjustments) 7.0 1.0 9.0 1.0 16.0 2.0 (Results of previous year) 7.3 1.4 8.0 2.1 15.2 3.5 0 235.0 9.0 4.3% 255.0 16.0 6.3% 490.0 25.0 5.1% Total (Results of previous year) 230.0 10.0 4.4% 244.0 14.3 5.9% 474.1 24.3 5.1% DAIO PAPER CORPORATION 13

Increase/Decrease of Consolidated Ordinary Income For first half of year ending Mar 31, 2017 (billion yen) 20 15 10-1.8 billion yen (6M ended Sep 30, 2015: 8.8 billion yen 6M ending Sep 30, 2016: 7.0 billion yen) Increase factors, total: 7.2 billion yen Increase in sales volume (+2.4) Decrease in price of raw materials/fuels (+4.8) Decrease in unit price (-5.5) Decrease factors, total: 9.0 billion yen Production increase / Cost reduction (-0.0) Others (-3.5) 5 0 8.8 6M ended Sep 30, 2015 6M ending Sep 30, 2016 Amount Major factors Increase in sales volume 2.4 Paper&Paperboard +0.9, H&PC +1.5 Decrease in price of raw materials/fuels 4.8 Woodchip +1.7, Coal +1.4, Pulp +0.2 Decrease in unit price -5.5 Paper&Paperboard -4.0, H&PC -1.5 Production increase/cost reduction -0.0 Production increase +1.0, improved yield and raw materials composition +0.4, decrease in chemical consumption rate +0.1, increase in fixed cost due to start of operation of new machine and others -1.8 Others -3.5 Foreign exchange loss on loans payable of foreign subsidiaries -0.9, increase in logistics cost due to increase in sales and others -1.1 Increase/decrease of ordinary income, total -1.8 DAIO PAPER CORPORATION 14 7.0

Increase/Decrease of Consolidated Ordinary Income For full year ending Mar 31, 2017 (billion yen) 40 30 20 +0.7 billion yen (Year ended Mar 31, 2016: 21.3 billion yen Year ending Mar 31, 2017: 22.0 billion yen) Increase factors, total: 12.7 billion yen Increase in sales volume (+5.8) Decrease in price of raw materials/fuels (+6.9) Decrease in unit price (-8.8) Decrease factors, total: 12.0 billion yen Production increase / Cost reduction (-0.8) Others (-2.4) 10 21.3 22.0 0 Year ended Mar 31, 2016 Year ending Mar 31, 2017 Amount Major factors Increase in sales volume 5.8 Paper&Paperboard +2.3, H&PC +3.5 Decrease in price of raw materials/fuels 6.9 Woodchip +3.0, Coal +2.1, Pulp +0.4 Decrease in unit price -8.8 Paper&Paperboard -6.4, H&PC -2.4 Production increase/cost reduction -0.8 Production increase +1.3, improved yield and raw materials composition +0.7, decrease in chemical consumption rate +0.2, increase in fixed cost due to start of operation of new machine and others -2.9 Others -2.4 Increase in logistics cost due to increase in sales and others -3.1 Increase/decrease of ordinary income, total 0.7 DAIO PAPER CORPORATION 15

Trend of Consolidated Ordinary Income Consecutive increase since FY2012 if effect of subsidy income from FY2014 is excluded Consolidated ordinary income Sales ratio (billion yen) (%) 30 25 4.8 4.5 4.5 5.0 5.5 4.5 20 3.4 (2.7) 3.5 15 10 5 2.4 11.2 14.2 1.4 1.2 5.7 4.7 1.6 6.6 2.6 11.3 21.8 (19.1) 21.3 22.0 25.0 2.5 1.5 0 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 (Forecast) Subsidy income from Fukushima Pref. of approx. 2.7 billion yen is included in ordinary income (21.8 billion yen) of FY2014. FY2017 (2nd MTBP Goal) 0.5 Consolidated ordinary income 1st Medium Term Business Plan FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 2nd Medium Term Business Plan FY2016 (Forecast) FY2017 (2nd MTBP Goal) 11.2 14.2 5.7 4.7 6.6 11.3 21.8 21.3 22.0 25.0 Sales ratio 2.4 3.4 1.4 1.2 1.6 2.6 4.8 4.5 4.5 5.0 3-year cumulative 24.7 billion yen (2.0%) 39.7 billion yen (3.2%) 68.3 billion yen (4.7%) DAIO PAPER CORPORATION 16

Trend of Consolidated Capital Expenditures and Depreciation (billion yen) 40 37.7 30 20 32.3 33.0 32.9 18.7 22.0 Depreciation Capital expenditures 31.6 29.6 26.4 26.4 27.2 27.0 24.9 21.7 18.2 37.3 34.0 30.0 30.0 25.0 10 0 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 (Plan) 1st MTBP 2nd MTBP FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 (Plan) FY2017 (Goal) FY2017 (Goal) Depreciation 32.3 33.0 32.9 29.6 26.4 26.4 27.2 27.0 30.0 30.0 3-year cumulative 9 5.4 8 0.0 87.0 CAPEX 37.7 18.7 22.0 18.2 21.7 24.9 31.6 37.3 34.0 25.0 3-year cumulative 5 8.9 7 8.3 96.3 Cumulative CAPEX for 2nd MTBP was projected to be 70.0 billion yen at the time of release of financial goals on May 28, 2015. In Supplementary Material on Consolidated Financial Results for Fiscal Year Ended March 31, 2016 (released May 12, 2016), it was announced that due to an increase in construction expenses and an acceleration of original CAPEX schedule to promote more growth during the 3rd MTBP, an increase of 20.3 billion yen over original projection was expected. However, at current point in time (May 30, 2016), the aforementioned figure is revised to be an increase of 26.3 billion yen over original projection. DAIO PAPER CORPORATION 17

Trend of Net Sales, Net Interest-bearing Debt, Equity (Ratio), Net D/E Ratio (billion yen) 500.0 450.0 Left axis Right axis Net sales Net interest-bearing debt Equity ratio Net D/E ratio 23.7 24.9 26.5 (%, times) 30.0 25.0 28.0 400.0 17.0 20.0 350.0 14.8 15.1 12.7 14.0 14.7 15.0 300.0 10.0 250.0 3.7 3.2 3.8 3.7 3.7 3.0 1.9 1.7 1.6 1.5 5.0 200.0 1st MTBP 2nd MTBP FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 (Plan) FY2017 (Goal) Net sales 465.8 423.1 410.2 409.0 407.4 430.1 450.2 474.1 490.0 500.0 Net interestbearing debt FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 (Plan) 382.5 336.5 329.3 308.9 363.5 331.8 292.5 281.5 278.0 250.0 ( Year-on-year change) 54.6-31.7-39.4-11.0-3.5-28.0 Equity 104.5 106.2 85.6 83.2 97.1 109.8 154.5 163.1 Equity ratio 14.8% 15.1% 12.7% 14.0% 14.7% 17.0% 23.7% 24.9% 26.5% 28.0% Net D/E ratio 3.7 3.2 3.8 3.7 3.7 3.0 1.9 1.7 1.6 1.5 DAIO PAPER CORPORATION FY2017 (2nd MTBP Goal) 0.0 18

2.00 yen Upward Revision to Year-end Dividends (For the fiscal year ended March 31, 2016) Annual dividends per share (yen) 2 nd quarter-end Fiscal year-end Total Yen Yen Yen Announced May 12, 2015 4.50 8.50 Revised April 26, 2016 6.50 10.50 Actual 4.00 For the fiscal year ended March 31, 2015 4.00 4.50 8.50 We recognize that returning profits to shareholders is one of the most important management issues, and our basic policy regarding dividend is to continue to distribute stable dividends while taking into consideration factors such as the status of business and the sufficiency of retained earnings. However, following the 2008 financial crisis, we had revised downward annual dividends per share for the fiscal year ended March 31, 2009 from 10.50 yen to 8.50 yen, and thereafter, it has been kept unchanged. Taking into consideration that net sales, operating income, ordinary income and profit attributable to owners of parent were expected to exceed the previous forecasts, we have revised upward yearend dividends by 2.00 yen to 6.50 yen per share (10.50 yen in total). DAIO PAPER CORPORATION 19

2 nd Medium-Term Business Plan (FY2015-FY2017) Step-up ~ Leap and Expand 20

2 nd Medium-term Business Plan (MTBP) Business Goals FY2015 Results FY2016 Plan FY2017 Goal Net sales billion yen 474.1 490.0 500.0 Ordinary income billion yen 21.3 22.0 25.0 Sales ratio % 4.5 4.5 5.0 Net interestbearing debt billion yen 281.5 278.0 250.0 Equity ratio % 24.9 26.5 28 Net D/E ratio times 1.7 1.6 1.5 Exchange rate yen/usd 120.2 110.0 115.0 Dubai crude oil USD/barrel 46 45 60 Principal strategies Structural shifting of Paper Business Strengthening Containerboard & Corrugated Container Business Further growth and acceleration of H&PC Business Thorough cost reduction Pursuing efficiency and diversity in human resource utilization Further improvement of financial strength DAIO PAPER CORPORATION 21

2 nd Medium-term Business Plan (MTBP) <Trend of consolidated net sales and ordinary income> Consolidated net sales(left axis) Consolidated ordinary income(right axis) 500.0 430.1 Record high net sales (Surpassed FY2008 s record high 465.8b yen) 474.1 450.2 21.8 21.3 490.0 22.0 500.0 25.0 (Unit: billion yen) 30.0 20.0 400.0 407.4 11.3 10.0 6.6 300.0 FY2012 FY2013 FY2014 FY2015 Results FY2016 Forecast FY2017 Goal 0.0 DAIO PAPER CORPORATION 22

2 nd Medium-term Business Plan (MTBP) <Trend of consolidated net sales, net interest-bearing debt, equity ratio, and net D/E ratio> Billion yen 500.0 450.0 Net sales (Left axis) %, times Net interest-bearing debt (Left axis) 28.0 30.0 Equity ratio (Right axis) 26.5 Net D/E ratio (Right axis) 23.7 24.9 25.0 400.0 363.5 17.0 20.0 350.0 14.7 331.8 15.0 300.0 292.5 281.5 278.0 10.0 250.0 3.7 3.0 1.9 1.7 1.6 250.0 1.5 5.0 200.0 FY2012 FY2013 FY2014 FY2015 Results FY2016 Plan FY2017 Goal 0.0 DAIO PAPER CORPORATION 23

Structural Shifting of Paper Business Achieve structural shift via a further shift of product mix Shift sales from coated paper to uncoated paper Strengthen sales of uncoated paper Thousand tonnes/month 150 100 50 149 151 150 151 155 156 Coated paper Uncoated printing paper Communication paper Wrapping paper/ Functional material 10 5 Uncoated paper Newsprint Thousand tonnes/month Trend of Sales Volume Trend for Uncoated Woodfree Paper <Achievement of 10% of domestic share> Launched rebranded Utrillo Joshitsu in FY2010 Share 2.2% 4.1 4.2 5.6 8.0 9.8 10.5 0 Ratio of uncoated paper(%) FY '12 FY '13 FY '14 FY '15 Results FY '16 Plan FY '17 Goal 57.7 58.3 58.7 59.0 60.6 62.8 0 FY '10 FY '11 FY '12 FY '13 FY '14 FY '15 Results FY '16 Plan FY '17 Goal DAIO PAPER CORPORATION 24

Structural Shifting of Paper Business Shift sales to higher value-added paper types Increase sales proportion of A2 grade out of coated paper sales Shift from roll to sheet products <Proportion of A2 Grade Paper Sales> Other coated paper FY2012 A2 35% FY2015 Results 45% <Sales Trend of Sheet Products> Thousand tonnes/month 20 17 16 14 15 13 19 10 FY2017 Goal 50% Lightweight coated paper is included in category of coated paper. DAIO PAPER CORPORATION 25 0 FY '12 FY '13 FY '14 FY '15 Results FY '16 Plan FY '17 Goal

Structural Shifting of Paper Business Strengthen business ties with regional distributors <Increase Proportion of Sales (Coated Paper) to Regional Distributors> Other business types FY2012 Regional distributors 23% FY2015 Results FY2017 Goal 30% 34% Together we grow, together we thrive, together we open up a new era (Sakura Terrace) Construct New Business Model Human Talent Quality Logistics Launch Ceremony on 17 Nov, 2015 Participating distributors: 33 companies (13 from East Japan, 20 from West Japan) Management seminar Printing process seminar Discussion on quality Development of new products Shared logistics cooperative Seminar on printing process for sales representative from regional distributors DAIO PAPER CORPORATION 26

Strengthening Containerboard & Corrugated Container Business Expand sales of value-added containerboards Expand sales via one-stop delivery (non price-based method) Expand sales of kraftliner and reinforced corrugating medium Iwaki Daio Paper is the only mill in Japan that is capable of producing almost all varieties of containerboards, hence customers could order from a wide range of almost all varieties of containerboards and have different varieties delivered in one shipment. Thousand tonnes/month 90 70 Sep, 2014 Start operation of new machine at Iwaki 68 72 75 83 87 87 Other containerboard Reinforced corrugating medium Standard corrugating medium Testliner 50 300 ~ Kraftliner FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Results Plan Goal DAIO PAPER CORPORATION 27

Strengthening Containerboard & Corrugated Container Business Expand sales of corrugated container case by focusing capital expenditure on printing, die-cutting and flexo & folding-gluing process. 3-year cumulative CAPEX of 10.0 billion yen with goal of providing higher quality and higher value-added products Million m 2 /month 70 50 55 3-year cumulative CAPEX amount 3.0 4.5 2.5 10.0 billion yen 59 58 59 62 65 Corrugated container sheet 30 Corrugated container case 10 0 FY2012 FY2013 FY2014 FY2015 Results FY2016 Plan FY2017 Goal DAIO PAPER CORPORATION 28

Further growth and acceleration of H&PC Business Achieve goal of net sales 200 billion yen in FY2017 Expand overseas business Billion yen 200 100 Installed new facial tissue machine at Kani Mill. Installed new wet tissue and wipes at Mishima. Iwaki New Factory (Phase 1). Expanded China factory building and warehouse, increased baby diaper machine. 120.6 134.9 3-year cumulative CAPEX amount 23.0 12.5 11.5 47.0 billion yen Iwaki New Factory(Phase 2). Indonesia New Factory. Newly install wet wipe machine in Thailand. Increase baby diaper machine in China. 146.8 158.9 180.0 200.0 Strengthen domestic paper towel business. Increase baby diaper machine in Indonesia. Paper products Absorbent products Overseas Business Figures in () are the ratios of overseas net sales to H&PC overall net sales. (25%) (15%) (16%) (19%) 0 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Results Plan Goal Ratio of H&PC overseas net sales to consolidated net sales 4.9% 5.3% DAIO PAPER CORPORATION 7.1% 10% 29

Further growth and acceleration of H&PC Business Achieve goal of net overseas sales of 50.0 billion yen in FY2017 (10% of consolidated net sales) Started operation of Indonesia new factory Billion yen 50.0 40.0 30.0 20.0 Commenced production at Indonesia new factory. Install new wet wipe machine in Thailand. Increase baby diaper machine in China. Established Vietnam representative office. Established Malaysia representative office. Established Taiwan representative office. Expanded Thailand warehouse. Expanded China factory building and warehouse, increased baby diaper machine. 3-year cumulative CAPEX 8.4 2.0 1.5 11.9 billion yen 22.2 Increase baby diaper machine in Indonesia. 25.1 35.0 50.0 Russia, Taiwan, and others SE Asia (Thailand, Indonesia, and others) South Korea 10.0 10.7 13.1 China 0.0 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Results Plan Goal DAIO PAPER CORPORATION 30

Further growth and acceleration of H&PC Business Indonesia Factory Production Commenced (Shipping started Mar 2016) (Joint venture with Mitsubishi Corporation) Location: West Java Province, Bekasi Regency, Bekasi International Industrial Estate (30km east of capital, Jakarta on Java island) Site area: 39,000m 2 Production facilities: 3 baby diaper machines (can hold up to 8 machines) Investment amount: Approx. 7.0 billion yen First disposable diaper to receive Halal certification! Indonesian Halal Label 3 rd overseas factory following Thailand and China 2016.4.21 Opening ceremony Halal label can only be included in product package of products that are certified halal (permissible to be used according to Islamic law). DAIO PAPER CORPORATION 31

Further growth and acceleration of H&PC Business Elleair Product Iwaki New Factory Production Commenced (Dec 2015) Location: Iwaki City, Fukushima Pref. (Next to Iwaki Daio Paper) Site area: 67,210m 2 Construction Phase 1 (Complete) Production facilities: 3 baby diaper machine, Construction Phase 2 1 sanitary pad machine Investment amount: Approx. 8.7 billion yen Date of completion (scheduled): Feb 2017 Production facilities: 1 adult diaper machine, 1 sanitary pad machine Investment amount: Approx. 3.4 billion yen DAIO PAPER CORPORATION 32

H&PC Business ~Onward to 3 rd MTBP~ Planned Installation of New Household Paper Machine To install new state-of-the-art household paper production facility at the currently inactive Kawanoe Mill (Shikokuchuo City, Ehime Pref.) Start date of operation (scheduled): Within FY2018 Production capacity: Approx. 4,500 tonnes/month Investment amount: Approx. 21.0 billion yen Purpose: To strengthen our structure for stable supply of household paper products to meet the needs of market and consumers, as the producer of Japan s top brand household paper products To advance the structural shift of Mishima Mill to adapt to weakening domestic paper demand To enliven economy of local community Kawanoe Mill DAIO PAPER CORPORATION 33

Progress of New Businesses Development Status of New Material Cellulose Nano-fiber (CNF) Pilot plant set up at Mishima Mill (Apr 2016) Production capacity: 100 tonnes/year (at maximum capacity) Purpose: With the aim of achieving widespread use of CNF, we are pursuing a energy efficient production method in order to lower cost Lightweight Gas barrier abilities High strength Properties of CNF Transparency Low thermal expansion Thixotropic Jun 2016 Install preprocessing facility (to further intensify energy efficiency) Apr 2017 Install drying facility (to produce dry powder form CNF) FY2020 Construct mass production plant (planned) DAIO PAPER CORPORATION 34

Cautions Regarding Forward-looking Statements Forward-looking statements such as projections and forecasts on business results included in this document are derived by Daio Paper Corporation (the Company ) based on beliefs as well as assumptions made using information currently available to it at the time of the release of the original Japanese document (30 May 2016), and are subject to contingencies, risks and uncertainties. As such, actual future performance and results could differ materially from the statements included herein as a result of latent risks, factors not yet known to the Company or not currently considered material to the Company and its subsidiaries by the Company. DAIO PAPER CORPORATION 35