Daio Paper Receives ¥8 Billion Grant for Coal Boiler Shutdown Project

Daio Paper Corporation issued this English translation of its timely disclosure statement dated February 6, 2026, for reference purposes only, with the original Japanese text prevailing in case of discrepancies.

The company, represented by President and CEO Yorifusa Wakabayashi (Securities Code: 3880, Prime Market of Tokyo Stock Exchange), announced receipt of the official Grant Allocation Decision Notice under METI’s FY2025 Decarbonization Growth-Oriented Economic Structure Transition Promotion Program.

This follows the project's adoption announced on October 7, 2025, as part of METI’s “Support Project for Energy and Manufacturing Process Conversion in Hard-to-Abate Sectors (Project II: Chemicals, Paper Pulp, Cement, etc.).”

Contact for inquiries is Iku Kitano, General Manager of the Public Relations and IR Department in the Corporate Planning Division, at +81-3-6856-7500.

Project details include: Applying company, Daio Paper Corporation; Project name, Coal boiler shutdown by construction of new power generation equipment capable of handling high-chlorine fuel; Capital investment, 27.2 billion yen; Allocated Grant Amount, 8 billion yen.

The matter will have insignificant impact on consolidated financial results for the fiscal year ending March 31, 2026, with prompt announcements if changes arise.