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Performance Report Accumulated Total for the Fiscal Year Ended March 31, 20 10

Performance Report Accumulated Total for the Fiscal Year Ended March 31, 20 10. Head of Finance and Accounting Division Toshio Takizaki. Sales (for FY Ended March 2010). *Projected figures are based on forecasts released on November 5, 2009.  Products

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Performance Report Accumulated Total for the Fiscal Year Ended March 31, 20 10

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  1. Performance ReportAccumulated Total forthe Fiscal Year EndedMarch 31, 2010 Head of Finance and Accounting Division Toshio Takizaki

  2. Sales (for FY Ended March 2010) *Projected figures are based on forecasts released on November 5, 2009. Products - Shipments (by pcs.): 4.4% growth year-on-year - Product prices:We lowered prices compared to FY ended March 2009 in line with reductions in raw material prices during the fourth quarter of last year. - Trays:FLB-series ultra-lightweight, low-stack-height trays had a strong showing. - Lunchbox containers:Strong performance from lightweight sashimi and sushi containers Steady stream of inquiries regarding new PET products Increased sales as a result of entry into agricultural goods container market  Goods - Concentrated on recommended goods such as packaging materials - Reviewed unprofitable trades - The figure for “Other goods” for the previous term includes ¥1,333 million in sales of paintings and antiques. * Reference: Paintings and antiques for sale in the previous year not included

  3. Financial Results Summary(for FY Ended March 2010) *Projected figures are based on forecasts released on November 5, 2009. Rationalization: We have reduced our range of items and focused on reducing costs on a group-wide basis, including production and distribution. We have reduced material costs by significantly lowering stack heights, developing more lightweight versions of all of our products and using replacement materials. Raw materials: Raw material costs increased as a result of a renewed increase in raw material prices in Q2, after a fall since the fourth quarter of last year. Sales: Having taken over the packaging material division of Taiyo Kosan Co. Ltd. in June 2009, we have launched a full-scale entry into the container and film market for produce. We took over food container operations from Nihon Pearl Containers Co. Ltd., whose customer base consists primarily of processed food manufacturers, in October 2009 and are working to increase sales. Production: We took steps to improve productivity and product quality, enhanced production capacity and optimized the production base to expand demand. Distribution: Developing a supply structure as appropriate for demand. Ensuring appropriate inventory levels. Reducing costs related to storage and internal allocation prior to shipment.

  4. Ordinary income for FY ended March 2009:9.29 bn. Factors Influencing Ordinary Income (for FY Ended March 2010) +5.3 -2.5 +2.5 +2.5 -2.5 -1.9 -1.9 -1.9 +0.6 +2.0 Ordinary income for FY ended March 2010:12.22 bn. +0.95 +0.95 +0.5 -0.4 -1.27 Unit: billion yen Ordinary income for FY ended March 2009:9.29 bn. Trends in Raw MaterialAfter a substantial increase, raw material prices started to fall from the fourth quarter of FY ended March 2009. Prices started to rise again however from the second quarter of FY ended March 2010. FY ended March 2009:Impact of increase in raw material prices Impact of raw materials: +¥3.4 bn Raw material pricelowered: +5.3 bn. Raw material prices lowered Product price reductionWe lowered product prices in line with reductions in raw material prices. We lowered the prices of products that had previously been increased. Reductions in raw material prices were passed on to product prices. FY ended March 2009: Impact of increase in product prices 1st product price reduction March 2009 2nd product price reduction Product pricereduction: -3.8 bn. First and second increases raw material prices Raw material prices started to increase again from the second quarter of FY ended March 2010. June 2009 (+ Effects of reducing product prices by using alternative materials and developing lighter products) First and second increases in raw material prices Increase in raw material prices: -1.9 bn. Product sales (volume)+4.4% year-on-year First: July 2009 / Second: September 2009 Using alternative materials/developing lighter productsWe have been working on lightweight versions of all of our products. We are making progress with the transition from PS to APET/PP. Increase in prices/improvements to product mix Raw material replacement and lighter-weight products Production improvementWe have made steady progress with improvement measures and also effectively increased production volumes. Production improvement Increase in profits: +5.0 bn. Distribution improvement Distribution improvement We have made steady progress with improvement measures. Increase in profit from group companies Reducing range of items We have reduced our range of items from 8,500, as of the end of September 2008, to 5,000 items, as of the end of February 2010. Decrease in profit from artwork sales: -0.4 bn. Profit from the sale of artwork last year The FPCO Fair 2010 held12,500 visitors 600 new products to be launched Cost increase Cost increase: -1.27 bn. Year-on-year +2.93 bn. 131.5%(+3.33 bn. 137.5% when paintings and antiques are excluded) Ordinary income for FY ended March 2010:12.22 bn. 1.42 bn. more than plan in beginning of year

  5. Capital Investments and Research and Development Cost(for FY Ended March 2010) *Projected figures are based on forecasts released on November 5, 2009. * Capital investment figures refer to all investments, including leasing and procurement. Major capital investments ◆ Chubu Picking Center/Recycling Plant \1,001 million ◆ New Fukuyama Picking Center \889 million *Total investment \1,800 million ◆ Mold \1,512 million ◆ Container collection and sorting plants \661 million ◆ PET Mechanical Recycling Plant \292 million *Total investment \1,320 million ◆ IT investment \355 million ◆ M&A (Taiyo Kogyo Corporation, Nippon Pearl Container) \861 million

  6. Cash Flows(for FY Ended March 2010) ■ Cash flows from financing activities Net decrease in borrowing - \ 6,412 million Payment of lease obligations - \ 3,340 million Amount paid as dividends - \ 1,940 million Cash flows from operating activities Net income before taxes and other adjustments \11,953 million Depreciation and amortization \8,461 million Increase in trade receivables - \1,416 million Decrease in inventory assets \880 million Corporate taxes and other payments - \4,785 million  Cash flows from investing activities Acquisition of tangible fixed assets - \7,565 million Expenditure in line with takeover of operations - \1,262 million Increase in long-term loans receivable - \584 million

  7. Summary of Results Chairman & CEO Yasuhiro Komatsu

  8. Summary of Consolidated Financial Results and Forecast for the Future Ordinary income for FY ending March 2011 Unit: billion yen Projected: ¥13.5 bn. Ordinary income for FY ended March 2010 ☆Reduced product prices in line with fall in raw material Renewed increase in raw material prices☆Implemented extensive internal rationalization ☆ Strategic investment ☆Market expansion through corporate integration ☆Reduction in product range to 5,000 items ☆FPCO Fair 2010 Projected sales for FY ending March 2011: ¥137.0 billion9.7%[Products]Sales: +5.3% year-on-year ( 52) Volume: +5% year-on-year [Goods]Sales: +25.1% year-on-year (69) 12.22 bn. ↑ 12.0 bn. ↑ 10.8 bn. +2.93 bn. +31.5% +3.33 bn. +37.5% +1.28 bn. +10.5% 9.29 bn. ☆ World-first materials and functions ☆ Developing products in anticipation of needs ☆ Increase market share and expand market ☆Increase sales of general-purpose products ☆Implement extensive internal improvements ☆Improve recycling operations ☆Improve small lot distribution operations 8.89 8.89 bn.+¥400 million from sale of movable assets 8.12 bn. Product sales for FY ended March 2010 (volume):+4.4% year-on-year 6.65 bn. 6.45 bn. 6.31 bn. Price competition -2.5 bn. 3.63 bn. 3.37 bn. 2.87 bn. Ordinary income Targets and medium-term management indicators Net profit per share: ¥400 Plan for FY ending March 2011 ‘10/3 '02/3 '03/3 '04/3 '05/3 '06/3 '07/3 '08/3 '09/3 Integration of raw material manufacturers 1st raw material price increase 2nd, 3rd and 4th raw material price increase 6th, 7th and 8th raw material price increase 9th raw material price increase 10th and 11th raw material price increase Raw material prices lowered 1st, 2nd increase in raw material prices 3rd increase in raw material prices 1st product price reduction 2nd product price reduction Product price increase Product price increase Product price increase Introduction of highly-foamed products Non-foaming materials Foaming materials Use of A-PET started Take over operations from Yuka Shoji Company Shift to thinner and lighter-weight products Shift to thinner and lighter-weight products Reduced range of items Nationwide expansion of transparent container collection PET Mechanical Recycling Plant SCM within company started Work-restructuring project Expanding nationwide container collection and sorting plants Kanto Yachiyo Center Shin Hokkaido HC Nishi Kanto Delivery Center New FukuyamaPC New Chubu Picking Center East Japan Hub-C Shimodate Daini Plant Chubu Daini Plant Took over packaging material division of Taiyo Kosan Co. Ltd. Incorporate ALRight Inc. Yamagata plant Extended APET container facilities Kyushu Daini Plant Took over operations from Nihon Pearl Containers Co. Ltd.

  9. Trends in Raw Material 200 2,000 180 1,800 160 1,600 140 1,400 120 1,200 100 1,000 80 800 60 600 40 400 20 200 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Naptha GPPS PET May need to consider price increasesin the event of further increases in raw material prices Renewed increasesince middle of 2009 Sudden declinefrom the end of 2008 ☆ Internal improvements ☆Lightweight development and replacement materials ☆Increasing sales Passed on to product prices Trends in the Asian market FY ended March 2009 FY ended March 2010 ☆ Shift towards new products and materials ☆Global procurement of materials as top user

  10. Product StrategyNew Materials and New Functions SCS lid MFP tray MFP tray with SCS lid Screw-top container Non-slip container General-purpose tray Clamshell container Transparent tray Snap-fit clamshell container ☆ New materials ◆Multi FP (MFP): Foamed PS containers resistant from -40˚C to 110˚C ◆Super Crystar (SCS): Highly transparent containers resistant from -40˚C to 110˚C ◆Mono-axially oriented PET containers: Heat-resistant up to 70˚C, lightweight ◆Bi-axially oriented PET containers: Heat-resistant up to 80˚C, lightweight 600 new products to be launched at FPCO Fair 2010 ☆ High added value and functionality◆ Screw-top containers (leak-resistant) ◇Leak-resistant containers: APET, PP ◆Containers with special bottom shapes which prevent food from shifting. ◇Containers with new designs ☆ Increase share of existing markets ☆ Target new markets ☆ Looking to new markets ◇Containers and flexible packaging (films) for produce ◇Containers for processed food manufacturers ☆ Using alternative materials/developing lighter products◇Material replacement for transparent containers: OPS  A-PET, PP, SCS ◇Development of lightweight foamed PS containers: Low-foamed PS  High-foamed PS ◆New Histar: Lightweight PP containers foamed 3.5 instead of 1.8 as previously ☆ Increase market share of general purpose products ◇Ultra-lightweight low-stack-height trays: FLB and Eco FLB ◇Snap-fit clamshell containers: AP-SA, OPS-SA, PP-SA ◇Clamshell containers: FP Food (OPS) ◇Transparent tray: AP-FC ☆ Reducing the number of items ◇Range of items reduced to 5,000 at the end of February 2010 6,200 items (end of Mar. 2009)  8,500 items (end of Sep. 2008)

  11. Domestic Food Market MFP tray with SCS lid Screw-top container General-purpose tray Transparent tray Snap-fit clamshell container Establishing an even stronger competitive advantage in specialist areasPrice competitiveness + quality and functionality Increasing share of existing markets According to industry According to sector CVS Food supermarkets General supermarkets Department stores Specialty stores Processed food Agricultural supplies Fruit & veg Packed meat Fresh fish Prepared food Other food Tapping into new markets New Materials and New FunctionsProduct development with an eye to new markets Ham and sausages Agricultural Food manufacturers Pickled food Restaurant and company/ school meals Frozen food

  12. Expanding the Scale of the Company Market scale: Over ¥2 trillion Market for packaging materials and supplies Market size: \500 billion Supplies and packaging materials/equipment Containers for disposable packaging In stores Packaging outside stores ・ Sanitary goods Promotional items Office supplies Bags Films Fabric Absorbent paper ・ ・ Flavorings Fixtures & fittings Machinery Prepared food Fresh fish Packed meat Fruit & veges Agricultural produce Packaging food For daily deliveries Bolstering our competitive edge in specialty areas Gaining ground in new fields October 2009 Took over operations at Nihon Pearl Containers Co. Ltd. from paper container manufacturer Toyama Yoseisha Co. Ltd. Support June 2009 Took over packaging material division of Taiyo Kosan Co. Ltd., number one company for containers and films for produce. Alliances and M&A Improving small lot distribution capabilitiesNew Fukuyama Picking Center (May 2010) New Chubu Picking Center (May 2011) Distribution network & SCM June 2010 Plans to incorporate ALRight Inc. into the group Distribution capabilities, infrastructure/network and procurement capabilities Alliances and M&A Product and material development capabilities and recycling Alliances and M&A April 2010 Took over product purchasing division of Yuka Shoji Co. Ltd ☆ Increasing share of existing markets ☆Targeting new markets Suppliers

  13. Collecting and Recycling ContainersFacing up to the Greatest Risk of All Collection base Container collection and sorting plant Operations scheduled to commence in Chubu in November 2010 PET MechanicalRecycling Plant Research and development geared towards Tray to Tray recycling Delivery of products Volume reduction Transparent containers sorted  Return truck Collected/received Aligned Sorted by machine + Other processes Infrared sorting of materials Volume reduction White Foamed PS containers sorted  Colored カラー Recycling plant ☆ Expanding container collection and sorting plants nationwide ☆Integrating recycling plants ☆Upgrading cleaning processes at recycling plants to highly functional lines Washed in warm water and detergent Reducing recycling costs and further improving the quality of pellets Pulverized Dried Melted/cut Nationwide expansion of collection and sorting plants and restructuring of recycling centers to be completed by end of year FY ended March 2010 Foamed PS container collection bases: 7,899 Annual volume collected: 7,095 tons Transparent container collection bases: 1,495 Annual volume collected: 426 tons Performance for FY ended March 2010: Collected 7,500 tons of used containers from 7,900 collection bases and sold ¥14.9 billion in recycled containers

  14. Social Contributions and Corporate Activities Number of disabled employees: 291 Calculated rate of employment: 493*Some overlap in the case of severely disabled employees Rate of disabled employment within the FP Corporation Group: 8.49% (Based on report dated June 1, 2009) Disabled employment support initiatives - Workplaces for disabled employees all over the country - ● Thermoforming: Three locations Plans to recruit 92 additional employees during FY ending March 2011 FPCO Ai Pack Corp. Hokkaido Plant ● Container assembly and secondary processing:Nine locations Hokkaido Sorting Center FPCO Ai Pack Corp.(scheduled to open in September 2010) Twofoamed PS sorting lines, one transparent container sorting line Includes employees at allied companies as of the end of March 2010 FPCO Ai Pack Corp. Yamagata Plant Yamagata Sorting Center FPCO Ai Pack Corp. (scheduled to open in September 2010) Twofoamed PS sorting lines, one transparent container sorting line Fukuyama Plant, FPCO Ai Pack Corp. Kanazawa Container Recycling Co. Ltd. ★ Recycling and sorting: Nine locations Fukuyama Plant, Daks Shikoku Fukuyama Sorting CenterFPCO Ai Pack Corp. Sixfoamed PS sorting lines, four transparent container sorting lines Ibaraki Plant, FPCO Ai Pack Corp. Local social welfare organization F&Y Sakaiminato Ibaraki Pigeon Recycling Co. Ltd. Twotransparent container sorting lines Daks Co. Local social welfare organization Tokai Sorting Center (scheduled to open in April 2010) Twofoamed PS sorting lines Hiroshima Plant, FPCO Ai Pack Corp. Saga Plant, FPCO Ai Pack Corp. Nishinomiya Plant, FPCO Ai Pack Corp. Gifu Plant, FPCO Ai Pack Corp. Daks Shikoku Saga Sorting Center FPCO Ai Pack Corp. Twofoamed PS sorting lines, one transparent container sorting line Nishinomiya Sorting Center FPCO Ai Pack Corp. Twofoamed PS sorting lines, one transparent container sorting line FPCO Ai Pack Corp. Gifu Sorting Center(scheduled to open in October 2010) Four foamed PS sorting lines, two transparent container sorting lines Daks Saga Aiming to enhance corporate value from an economic, environmental and social standpoint

  15. Major Capital InvestmentReinforcing Distribution and Recycling Bases ☆ New Fukuyama Picking CenterIn full operation from June 2010 2 floors, 24,750m2 Connected to existing building, increasing small lot distribution capacity by 50% * Enabling small lot distributions worth ¥11.0 billion a year Establishing a comprehensive nationwide distribution network Hokkaido Delivery Center Sapporo Picking Center Tohoku Delivery Center ☆ New Chubu Picking CenterScheduled to start operations in May 2011 Reinforcing small lot distribution capabilities for the Chubu and Tokai areas Sendai Picking Center Niigata Picking Center Fukuyama Delivery Center Kanto Delivery Center Fukuyama Picking Center Nishinomiya Picking Center Kanto Picking Center Hiroshima Picking Center Tokyo Picking Center Kyushu Delivery Center Chubu Picking Center Nishikanto Picking Center Fukuoka Picking Center Chubu Delivery Center ☆ Launching a PET Mechanical Recycling PlantScheduled to start operations in November 2010 * Research and development underway with an eye to achieving PET Tray to Tray recycling ☆ Reopening Chubu Recycling PlantScheduled to start operations in October 2010, reinforcing recycling capabilities Hokkaido Sorting Center Expanding collection and sorting bases nationwide and restructuring recycling centers ☆ Nationwide expansion of container collection and sorting plants (from six centers to nine)*Enabling annual sorting capacities of 1,200 tons of transparent containers and 8,400 tons of foamed PS Yamagata Sorting Center Kanazawa Sorting Center Fukuyama Recycling Center Kanto Recycling Center ☆ Upgrading cleaning facilities at recycling plants to highly functional lines*Switching from water-based cleaning to cleaning using warm water and detergent and further improving the quality of pellets Fukuyama Sorting Center Nishinomiya Sorting Center Kanto Sorting Center Tokai Sorting Center Chubu Sorting Center Chubu Recycling Center Kyushu Sorting Center APET Mechanical Recycling Plant

  16. Expanding the Scale of the Company A major shift towards internal improvements + an increased scale of operations FY endingMarch 2011Projected sales137.0 bn.+12.1 bn. 109.7% FY endedMarch 2009 Sales 128.1 bn. FY ended March 2008 Sales 125.5 bn. FY ended March 2010 Sales 124.9 bn. FY ended March 2007Sales 124.2 bn. Projected product sales34.4 bn.+6.9 bn. 125.1% ☆ Increasing products handled and reinforcing procurement capabilities ☆Proposing distribution cost reductions and expanding scale through M&A Goods29.7 bn. Goods31.3 bn. Goods27.5 bn. Goods32.2 bn. ☆ Product development preempting customer needs ☆Increasing share of existing markets and targeting new markets ☆Increasing sales of general-purpose products ☆Increasing sales of Eco Tray products + World-first materials and functions + Expanding scale through M&A Projected product sales102.6 bn. +5.2 bn. 105.3% Products98.5 bn. Products97.4 bn. Products94.2 bn. Products92.0 bn. Projected sales volume105% Volume: 101.5% Volume: 104.4% Volume: 103.9% Volume: 103.6% ☆ March 2010: FPCO Fair 2010 ☆ June 2010: Commence full operations at New Fukuyama Picking Center ☆ September 2010: Complete nationwide expansion of collection and sorting bases ☆ October 2010: Commence operations at New Chubu Picking Center and complete restructuring of recycling centers ☆ November 2010: Commence operations at APET Mechanical Recycling Plant in Chubu ☆ May 2011: Commence operations at New Chubu Picking Center

  17. Reinforcing Our Corporate Foundations President & COO Morimasa Sato

  18. Uncompromising pursuit of three basic pillars of a manufacturer at the most competitive price Providing higher-quality products Price competitiveness High quality Increasing precision and sharing information Distribution capability without fail, when they are wanted Reinforcing the foundation of our company Improving our corporate value and competitiveness

  19. Impact of Fluctuations in Raw Material Prices 10th, 11th 3.80 -1.50 2.50 Indirect materials and PP 0.40 9th 1.00 -5.30 Indirect materials and PP 0.45 9th 1.20 1.40 8th 1.90 6th, 7th 0.90 8th 0.40 6th, 7th 0.90 2nd, 3rd, 4th 1.00 2.00 2nd, 3rd, 4th 1.65 1st 1.38 1st Unit: billion yen Raw material price increase since FY ended March 2003 has beenputting pressure on profit in following amounts: Accumulated total of\11.88 bn.in FY ended March 2008Accumulated total of\15.58 bn.in FY ended March 2009 Accumulated total of\12.18 bn.in FY ended March 2010 Accumulated total of ¥14.68 billionforecast for FY ending March 2011 Raw material prices down from 4th quarter of FY ended March 2009 +5.2 -6.8 1st, 2nd and 3rd increases in raw material prices 15.58 14.68 +4.4 12.18 11.88 Raw material prices on increase from 2nd quarter of FY ended March 2010 Reduction in raw material prices passed on to product prices 0.60 '03/3 '04/3 '05/3 '06/3 '07/3 '08/3 '09/3 '10/3 '11/3

  20. Internal Improvement Measures 0.80 1.20 2.00 0.95 0.95 2.40 0.50 0.30 1.18 0.57 0.30 0.86 0.80 0.87 0.80 0.55 0.60 0.20 1.23 0.50 0.38 1.10 0.38 0.24 Unit: billion yen 19.66 +2.0 Shift to thinner, lighter products, replacement of materials　　　・Non-foaming materials  Foaming materials　　　・Adding ribs and bottom rims　　　・FLB and Eco FLB (ultra-lightweight trays) 　　　・Switching to A-PET materials　　　・Reducing the weight of foamed polystyrene products Low-foamed PS  High-foamed PS Product prices increased 3.80 17.66 Product prices lowered -3.80 +3.9 Distribution improvement　　　・Ensuring appropriate inventory level 　　　・Reduction of extra transportation before final shipment　　　・Improving the efficiency of deliveries to customers +3.2 13.76 Product prices increased 0.90 Production improvement　　　・Speeding up production　　　・Increasing rate of in-house production　　　・Downtime reduction 10.56 Product prices increased 0.80 Product prices increased 2.30 Continuous internal improvements Product prices increased0.77 '03/3 '04/3 '05/3 '06/3 '07/3 '08/3 '09/3 '10/3 '11/3

  21. Improving productivity and quality 49th term: Up another 0.4 points 7.6% improvement 49th term: Down another 2.3 points 49th term: Up another 0.03 points 49th term: Up another 0.5 points 8.0 point improvement 0.8 point improvement 9.2% improvement 60 Frequency of replacing molds 40 20 0 44th term 45th term 46th term 47th term 48th term Operating rate % Number of shots per time st/h Product efficiency % Shot labor costs \/st 46th term (1st half) 46th term (2nd half) 48th term (2nd half) 48th term (1st half) 49th term (projected) 47th term (1st half) 47th term (2nd half) 46th term (1st half) 46th term (2nd half) 46th term (1st half) 46th term (2nd half) 47th term (1st half) 47th term (2nd half) 48th term (2nd half) 49th term (projected) 48th term (2nd half) 49th term (projected) 48th term (2nd half) 49th term (projected) 48th term (1st half) 48th term (1st half) 48th term (1st half) 47th term (1st half) 47th term (2nd half) 47th term (1st half) 47th term (2nd half) 46th term (1st half) 46th term (2nd half) 1. Examining optimum personnel assignment 2. Reducing overtime 1. Aiming for best cycle for each product 2. Renewing and revamping facilities in a planned manner • 1. Reduction of stop time for accommodating troubles • Reducing losses generated when laminating machines are started up 1. Reduction of downtime 2. Reduction of stop time for accommodating troubles Effective impact of improvements during FY ending March 2010: Approx. ¥890 million [Skill school] Educational programs for resource development ★Succession of superior skills ★Skill development/improvement 49th term (projected) 18ppb Complaint rate ppb 43ppb FY ended March 2009: 49 graduatesFY ended March 2010: 48 graduates FY ending March 2011: First half: 24 trainees entered the school 75ppb 49th term (projected) 44th term (1st half) 44th term (2nd half) 45th term (1st half) 45th term (2nd half) 46th term (1st half) 46th term (2nd half) 47th term (1st half) 47th term (2nd half) 48th term (1st half) 48th term (2nd half) Target: 10 ppb [Innovative activities in manufacturing ] Rate of in-house production 76% Pursuit of speed and precision ★Visualizing waste and losses based on “5S” ★Sharing awareness of issues Achieving higher work standards through reviews and revisions Continuing to hold reporting sessions once every six months 83% 44th term (1st half) 44th term (2nd half) 45th term (1st half) 45th term (2nd half) 46th term (1st half) 46th term (2nd half) 47th term (1st half) 47th term (2nd half) 48th term (1st half) 48th term (2nd half) 5.8% improvement [Reducing the number of items] Foamed PS19.7% improvement Range of items reduced to 5,000 at the end of February 2010 6,200 items (end of Mar. 2009)  8,500 items (end of Sep. 2008)

  22. Technologies and Materials Screw-top container MFP tray with SCS lid Leak-resistant containers To date FY2006-2009 FY2009-2011 Harnessing resources FY2012-2014 FP Corporation Commercialization of food containers Initial research Identification of areas of research and testing Wide-rangingdomestic andinternational research Hiroshima University Hiroshima University Identification of structures and physical properties Joint research Development of usable prototype NOC for ultra high-performance polymers Development of ultra high-performance polymer materials Laboratory prototypes Research into polymer crystallization Sun Allomer Ltd. Polymers optimization Creation of new industries Transparent tray Snap-fit clamshell container Research and Development Roadmap ★ We are competitive in all aspects of manufacturing products, including prices ★ Further cost reduction and further improvement of function in terms of materials, original fabrics, films, molds, molding and general technologies ◆ Leak-resistant containers ◆ Screw-top containers ◆PP containers, APET containers ◇ New heat-resistant containers ◇ Mono-axially oriented PET containers: Heat-resistant up to 70˚C, increased strength to enable more lightweight containers ◇ Bi-axially oriented PET containers: Heat-resistant up to 80˚C, increased strength to enable more lightweight containers ◇ Transparent PP containers: Heat-resistant up to 110˚C ◇ New Histar (HS): Heat-resistant up to 110˚C, increased rate of foaming to product lightweight PP containers ★ New cold- and heat-resistant containers ★ Multi FP (MFP): Foamed PS containers resistant from -40˚C to 110˚C ★ Super Crystar (SCS): Highly transparent sheet resistant from -40˚C to 110˚C ☆ Getting involved in development of new general-purpose plastics ☆ Achieving polypropylene crystallization of almost 100% ☆ Achieving specific strength 2-5 that of steel, heat-resistant up to 176˚C ☆ Achieving same level of transparency as glass ☆ Enabling thermoforming on a more advanced level ☆ Enabling recycling

  23. Cutting Distribution Costs and Improving Quality Route costs Internal transportation costs Internal transportation Percentage of product sales Routes Percentage of product sales ←3.3%→ ←3.2%→ ←2.7%→ ←2.3%→ ←1.9%→ ←1.5%→ ←1.2%→ ←1.1%→ ←1.1%→ ←1.2%→ ←1.0%→ ←0.9%→ ←0.7%→ ←0.7%→ ←0.4%→ ←0.3%→ FY ended March 2003 FY ended March 2004 FY ended March 2005 FY ended March 2006 FY ended March 2007 FY ended March 2008 FY ended March 2009 FY ended March 2010 FY ended March 2003 FY ended March 2004 FY ended March 2005 FY ended March 2006 FY ended March 2007 FY ended March 2008 FY ended March 2009 FY ended March 2010 Total distribution costs Trends of small lot distribution, its service levels Total distribution Percentage of product sales Other errors (Target for FY ending March 2010: 5ppm) 1.9ppmShipment-related errors: 1.0ppm Delivery-related errors: 0.1ppm Other errors: 0.8ppm Errors related to deliveries Errors related to shipment ← 18.8% → ← 18.1% → ← 17.4% → ← 15.6% → ← 14.8% → ← 14.4% → ← 13.9% → ← 13.9% → FY ended March 2003 FY ended March 2004 FY ended March 2005 FY ended March 2006 FY ended March 2007 FY ended March 2008 FY ended March 2009 FY ended March 2010 FY ended March 2004 FY ended March 2009 FY ended March 2005 FY ended March 2006 FY ended March 2007 FY ended March 2010 FY ended March 2008 Trends in number of items subject to shortage Daily average in FY3/2006: 37 items　　→Daily average in FY3/2007: 11.7 items　　　　→Daily average in FY3/2008: 6.2 items　　　　→Daily average in FY3/2009: 4.3 items　　　　→Daily average in FY3/2010: 1.3 items FY3/2006 FY3/2007 FY3/2008 FY3/2009 FY3/2010 FY3/2011 Jun. 1 Jul. 1 Aug. 1 Sep. 1 Oct. 1 Nov. 1 Dec. 1 Jan. 1 Feb. 1 Mar. 1 Apr. 1 May 1

  24. FP Corporation's Comprehensive Nationwide Distribution Network Six delivery centers (339,900m2*) and 11picking centers (92,400m2*) nationwide Providing high quality, efficient distribution services Hokkaido Delivery Center Sapporo PC * Including new Fukuyama Picking Center Tohoku Delivery Center New Fukuyama Picking Center to commence operations in May 2010 Sendai PC Niigata PC Fukuyama Delivery Center Nishinomiya PC Kanto PC Fukuyama PC Kanto Delivery Center Tokyo PC Hiroshima PC Nishikanto PC Outline of small lot distribution Kyushu Delivery Center Chubu PC • Items handled: 45,000 • Volume of shipments: 4 million a month • Shipment destinations: 220 companies (6,000 locations) • Delivery precision: 4ppm (4/1,000,000) Fukuoka PC Chubu Delivery Center New Chubu Picking Center scheduled to commence operations in May 2011

  25. 60% ~ 70% 60% ~ 70% Approach to the Packaging Material and Consumable Goods Market Market for packaging materials and supplies 30% ~ 40% Supplies and packaging materials/equipment Containers for simple packaging ・ ・ ・ Bags Films Fabric Absorbent paper Fixtures & fittings Machinery Sanitary goods Promotional items Office supplies Fresh food trays Prepared food containers Lunch box containers Sashimi containers Salad containers Transparent containers Labels 30% ~ 40% Breakdown of sales Breakdown of distribution costs Class A products Class B products Class C products [Breakdown according to class] [Outline of delivery operations] 38% 35% 27% Percentage of warehouse stock Class C products - Labels -Bags -Edging -Hygiene products · · · 64% Containers 27% Containers 9% Containers Percentage of items Class A products Class B products 54% 38% 8% Percentage of sales Cutting overall distribution costs,focusing mainly on container distribution

  26. Expanding the Scale of the Company Market scale: Over ¥2 trillion Market for packaging materials and supplies Market size: \500 billion Supplies and packaging materials/equipment Containers for disposable packaging In stores Packaging outside stores ・ Sanitary goods Promotional items Office supplies Bags Films Fabric Absorbent paper ・ ・ Flavorings Fixtures & fittings Machinery Prepared food Fresh fish Packed meat Fruit & veges Agricultural produce Packaging food for daily deliveries Bolstering our competitive edge in specialty areas Gaining ground in new fields October 2009 Took over operations at Nihon Pearl Containers Co. Ltd. from paper container manufacturer Toyama Yoseisha Co. Ltd. Support June 2009 Took over packaging material division of Taiyo Kosan Co. Ltd., number one company for containers and films for produce. Alliances and M&A Improving small lot distribution capabilitiesNew Fukuyama Picking Center (May 2010) New Chubu Picking Center (May 2011) Distribution network & SCM June 2010 Plans to incorporate ALRight Inc. into the group Distribution capabilities, infrastructure/network and procurement capabilities Alliances and M&A Product and material development capabilities and recycling Alliances and M&A April 2010 Took over product purchasing division of Yuka Shoji Co. Ltd ☆ Increasing share of existing markets ☆Targeting new markets Suppliers

  27. Group Management Commissioned producers Consolidated production companies Companies with disabled employees We supply 13.5 million cartons of products to dinner tables in 50 million householdsall over Japan every year, with a total of 47 million products delivered in 110,000 trucks,and collect 1.9 billion containers (7,500 tons). FPCO Hokkaido Co. FPCO Sendai Co. FPCO Yamagata Ltd. FPCO Ibaraki Co. FPCO Shimodate Ltd. FPCO Chubu Co. FPCO Kasaoka Co. FPCO Engineering Ltd. FPCO Kannabe Ltd. FPCO Fukuyama Co. FPCO Minoshima Co. FPCO Saga Co. Teika Precision Co. FPCO Japan Pearl Co. ALRight Inc. (Planed) Daks Co. Daks Saga Co. Daks Shikoku Co. Nodaya Ltd. FPCO Ai Pack Corp. Ibaraki Pigeon Recycling Co. FP Corporation Commissioned distributors Consolidated sales and purchasing companies Sales Consolidated distribution companies Production Environment Excel Distribution Ltd. FPCO Picking Ltd. FPCO Chubu Distribution Ltd. FPCO Kanto Picking Ltd. FPCO Kyushu Distribution Ltd. FPCO Distribution Co. I Logic Co. FP CHUPA Co. Ltd. FP Trading Co. Ltd. FPCO Modern Pack Co. Ltd. SCM Collection of Post-consumer containers Materials manufacturers and packaging wholesalers Purchasing Disabled employment Distribution Harnessing the group's all-round strengths to expand the scale of the company and enhance corporate value

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