Financial Results for the Nine Months Ended December 31, 2021
[JGAAP](Consolidated)
February 14, 2022
Company name: Kokusai Pulp & Paper Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 9274
URL: https://www.kppc.co.jp/
Representative: Tadashi Kurihara, Director of the Board, President & Executive Officer
Contact: Tatsuhiko Tachibana, Managing Executive Officer and General Manager of Administration Division
Phone: +81-3-3542-4169
Scheduled date of filing quarterly securities report:
February 14, 2022
Scheduled date of commencing dividend payments:−
Availability of supplementary explanatory materials on quarterly financial results:
No
Schedule of quarterly financial results briefing session:
No(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2021 (April 1, 2021 to December
31, 2021)(1) Consolidated Operating Results(Percentages represent year-on-year changes.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Million yen

Nine months ended
December 31, 2021
410,343
Nine months ended
December 31, 2020
296,207(Note) Comprehensive income:%Million yen%

Million yen%

Million yen

%

−

5,995

−

6,379

−

5,415

−

3.4
(10,168)−(12,646)−(10,485)
Nine months ended December 31, 2021: 8,682 million yen (-%)
Nine months ended December 31, 2020: (13,202) million yen (-%)−

Basic earnings per
share

Diluted earnings per
share

Yen

Yen

Nine months ended
December 31, 2021
75.40−
Nine months ended
December 31, 2020
(145.73)−
Note: Effective from the beginning of the first quarter ended June 30, 2021, the Group has adopted the AccountingStandard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and others. Therefore, eachamount for the third quarter of the fiscal year ending March 31, 2022 is an amount after the adoption of thesaid accounting standard and others, and does not include any year-on-year percentage changes.
(2) Consolidated Financial Position
Total assets
Nine months ended
December 31, 2021
Fiscal year ended
March 31, 2021
(Reference) Equity:

Net assets

Equity ratio

Million yen

Million yen%

296,446

51,12617.2

275,119
43,581
15.8
Nine months ended December 31, 2021: 51,071 million yen
Fiscal year ended March 31, 2021: 43,489 million yen

2. Dividends
1st quarter-end

2nd quarter-end

Annual dividends
3rd quarter-end

Yen

Yen

Yen

Year-end

Fiscal year ended–
0.00–
March 31, 2021
Fiscal year ending–
5.00
March 31, 2022
Fiscal year ending
March 31, 2022–
(Forecast)
Note: Revision to the forecast for dividends announced most recently: Yes

Total
Yen

Yen

10.00

10.00

9.00

14.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March
31, 2022)(Percentages represent year-on-year changes.)
Profit attributable
Basic earnings
Net sales
Operating profit
Ordinary profit
to owners ofper share
parentMillion yen%

Million yen%

Million yen%

Million yen%

Yen

Full year
555,000
−
9,000
−
8,500
−
7,200
−
100.25
Note: Revision to the earnings forecast announced most recently: Yes(Note 2) Effective from the beginning of the fiscal year ending March 31, 2022, the Group has adopted the“Accounting Standard for Revenue Recognition” (Corporate Accounting Standard No. 29) and others, andtherefore each amount for the above consolidated financial results forecast is an amount after the adoptionof the said accounting standard and others, and does not include any year-on-year percentage changes.
* Notes:(1) Changes in significant subsidiaries during the fiscal year
(Changes in specified subsidiaries resulting in changes in scope of consolidation): No(2) Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(4) Total number of issued and outstanding shares (common shares)
1) Total number of issued and outstanding shares at the end of the period (including treasury shares):
Nine months ended December 31, 2021
73,244,408 sharesFiscal year ended March 31, 2021
75,077,406 shares2) Total number of treasury shares at the end of the period:
Nine months ended December 31, 2021
1,410,953 sharesFiscal year ended March 31, 2021
3,278,133 shares
3) Average number of shares during the period:
Nine months ended December 31, 2021
Nine months ended December 31, 2020

71,820,820 shares
71,953,033 shares* These quarterly consolidated financial results are outside the scope of quarterly review by certified public
accountants or an audit firm.
* Explanation of the proper use of financial results forecast and other notes(Cautionary notes regarding forward-looking statements)
The results forecast and other forward-looking statements contained in this document are based on the information
currently available to the Company and certain assumptions deemed to be reasonable, and are not intended as aguarantee that the Company will achieve them. Actual results may differ significantly due to various factors. For
assumptions for the results forecast and points to consider in utilizing them, please see “(3) Explanation of
consolidated financial results forecast and other forward-looking information” in “1. Qualitative Information
Regarding Settlement of Accounts for the Nine Months Ended December 31, 2021” of the attachments.

Table of Contents of Attachments
1.

Qualitative Information Regarding Settlement of Accounts for the Nine Months Ended December 31, 2021 .. 2
(1) Explanation on Operating Results .............................................................................................................. 2(2) Explanation on Financial Position .............................................................................................................. 3(3) Explanation of consolidated financial results forecast and other forward-looking information ................. 3(1) Quarterly Consolidated Balance Sheets...................................................................................................... 4(2) Quarterly Consolidated Statements of Income and Comprehensive Income.............................................. 6(3) Notes to Consolidated Financial Statements .............................................................................................. 8(Notes on Going Concern Assumption) ...................................................................................................... 8(Consolidated Statements of Income) ......................................................................................................... 8(Notes on significant changes in the amount of shareholders’ equity) ....................................................... 8(Changes in accounting policies) ................................................................................................................ 9(Additional Information) .......................................................................................................................... 10(Segment Information, etc.) .......................................................................................................................111

1.

Qualitative Information Regarding Settlement of Accounts for the Nine Months Ended December 31, 2021

(1) Explanation on Operating Results
Effective from the beginning of the first quarter ended June 30, 2021, the Group has adopted the AccountingStandard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and others. Therefore, an
explanation on operating results for net sales for the nine months ended December 31, 2021 does not include
year-on-year percentage changes (%).
(1) Financial Position and Status of Operating Results(a) Status of Operating Results
During the nine months ended December 31, 2021, the global economy turned to a moderate recovery trend
thanks to the resumption of economic activities in accordance with a rise in COVID-19 vaccination rates,
and the implementation of economic measures in various countries. On the other hand, the economic
outlook remained uncertain due to the resurgence of another COVID-19 variant and the confusion in the
global supply chain stemming from a worldwide shortage of semiconductors and delays in maritime
transportation, among other reasons.
In Japan, economic activities were restarted and economic stimulus measures were implemented in responseto the progress of COVID-19 vaccination and the lifting of the state of emergency at the end of September.
As a result, household consumption showed signs of recovery and corporate performance improved.
However, due to the current resurgence of a COVID-19 variant, there are concerns that the economy that led
to some recovery may turn sluggish.
Under these circumstances, the Group strived to expand its global share and boosted the restructuring of its
business portfolio in line with its long-term management vision, GIFT+1 2024.
As a result, net sales for the nine months ended December 31, 2021 were 410,343 million yen. In terms ofoperating profit and loss, gross profit increased on a year-on-year basis, boosted by a recovery from theprevious fiscal year when the COVID-19 pandemic affected both domestic and overseas bases. Operating
profit was 5,995 million yen (compared with an operating loss of 10,168 million yen in the same period of
the previous fiscal year), ordinary profit was 6,379 million yen (an ordinary loss of 12,646 million yen in
the same period of the previous fiscal year), and profit attributable to owners of parent was 5,415 million
yen (a loss attributable to owners of parent of 10,485 million yen in the same period of the previous fiscal
year).
Results for the nine months ended December 31, 2021 by segment are as follows.
<Wholesale pulp and paper, domestic locations>
During the nine months ended December 31, 2021, after the state of emergency and priority measures werelifted across the country, there were signs of recovery in personal consumption which had been stagnant,and there was a certain degree of recovery in demand for paper, mainly graphic paper such as catalogues
and flyers. However, the effect was limited.
Demand for paperboard for paper containers recovered slightly as the flow of people increased following
the lifting of the state of emergency. Net sales for containerboard base paper increased from the previous
fiscal year. This was due to the continuously strong demand for beverage packing materials, and an increasein exports to overseas, China in particular.
Sales volume remained almost unchanged as waste paper production decreased amid low domestic paper
consumption.
As a result, net sales were 191,311 million yen, and operating profit was 3,881 million yen (144.5% yearon-year) for the nine months ended December 31, 2021.

2

<Wholesale pulp and paper, overseas locations>
Both net sales and profits of the sector largely exceeded the previous fiscal year boosted by the success of theregional strategy, and the restructuring of the Group’s business portfolio and profit structure, which drove its
overall performance.
In Europe, despite local lockdowns imposed in some cities early in the first half, earnings of Antalis S.A.S.,
which we acquired in July 2020, improved substantially. This was due to efforts to improve profitability by
reducing interest expenses associated with reduced debts, and streamline management, including businessrestructuring. There was also a healthy packaging business and a recovery of the visual communication market.
The economy of Oceania, especially Australia, was affected by the lockdowns imposed in major cities due toconcerns about the spread of the Delta variant of COVID-19. However, Spicers Limited, which we acquiredin 2019, expanded the scope of the mainstay packaging business and the sign and display business by way of
M&A, and took advantages of its stock business in the paper business. As a result, earnings of Spicers Limited
were enhanced rapidly.
In China, the earnings of KEISHIN PAPERS TRADE were weighed down by the paper and paperboard
market that slumped after the third quarter due to the government's zero-COVID policy and a container
shortage. However, they are on a recovery trend, helped by improved sales sites and the system establishedby its stock business.
In addition, KPP ASIA-PACIFIC PTE. LTD., which is in charge of the ASEAN region, has completed a
corporate reorganization within the KPP Group, and is expanding earnings by capturing demand in the regions
where the spread of COVID-19 has peaked out.
As a result, net sales were 21,815 million yen, and operating profit was 4,156 million yen (compared with anoperating loss of 11,456 million yen in the same period of the previous fiscal year) for the nine months ended
December 31, 2021.
<Real estate leasing>
Despite the continuous full operation of the KPP Yaesu Building, which is our main property, the Group’s
net sales decreased slightly due mainly to the reduced rent income arising from the redevelopment of ownedbuildings. In terms of profit, operating profit decreased due to land rent arising from the sale of land for the
KPP Yaesu Building in February 2021.
As a result, net sales were 926 million yen (99.0% year-on-year), and operating profit was 136 million yen(26.6% year-on-year) for the nine months ended December 31, 2021.
(2) Explanation on Financial Position
Total assets at the end of the third quarter ended December 31, 2021 were 296,446 million yen, up 21,326
million yen from the end of the previous fiscal year. This was mainly due to an increase in trade receivables
and inventory assets.
Liabilities were 245,319 million yen, up 13,781 million yen from the end of the previous fiscal year. Thiswas due mainly to an increase in trade payables and commercial papers.
Net assets came to 51,126 million yen, up 7,544 million yen from the end of the previous fiscal year. Thiswas due mainly to an increase in profit attributable to owners of parent and remeasurements of defined
benefit plans. As a result of the above, the equity ratio was 17.2%, up 1.4 points from the end of theprevious fiscal year.
(3) Explanation of consolidated financial results forecast and other forward-looking information
Taking into consideration the recent business trends, the Company has revised its consolidated financial
forecasts for the fiscal year ending March 2022, which were announced on August 11, 2021. For details,
please refer to "Notice of Revision of Consolidated Financial Results Forecast and Dividend Forecast for
the Fiscal Year Ending March 2022" announced today (February 14, 2022).
3

2.

Quarterly Consolidated Financial Statements and Key Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
Third Quarter of Current Fiscal
Year(December 31, 2021)

Previous Fiscal Year
(March 31, 2021)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade30,546
112,782

13,004
129,625

Electronically recorded monetary claims - operating
Merchandise

12,92840,012

21,11948,348

Other
Allowance for doubtful accounts

10,138(5,735)

14,559(5,140)Total current assets

200,672

221,516

Non-current assets
Property, plant and equipment
Buildings and structures, net

6,935

6,396

Land
Other, net

9,581
18,3299,418
18,149Total property, plant and equipment

34,84533,964

Intangible assets
Goodwill

4,235

3,885

Other

4,541

4,631

Total intangible assets

8,777

8,517

Investment securities
Retirement benefit asset

17,806
9,230

16,791
12,695

Other
Allowance for doubtful accounts

12,972(9,184)

12,846(9,886)

Total investments and other assets

30,82432,446

Investments and other assets

Total non-current assets
Total assets

474,44774,929275,119

296,446(Million yen)
Third Quarter of Current Fiscal
Year(December 31, 2021)

Previous Fiscal Year
(March 31, 2021)
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating

81,672
3,552

96,517
4,965

Short-term borrowings
Commercial papers

67,99934,182
13,000

−
9,273
3,857

Income taxes payable
Provisions

1,216
2,740

Other

24,637

29,131

Total current liabilities

190,993

181,754

Non-current liabilities
Long-term borrowings

15,27242,651Retirement benefit liability
Provisions

4,811
443

3,487
484

Other

20,017

16,942

Total non-current liabilities

40,54463,565

231,537

245,319

Capital stock
Capital surplus

4,723
7,833

4,723
7,292

Retained earnings
Treasury shares

31,826(1,089)36,143(535)

Total shareholders’ equity

43,29347,623

3,798

3,389

Deferred gains or losses on hedges
Foreign currency translation adjustment(54)(1,380)(32)(1,414)Remeasurements of defined benefit plans(2,167)

1,506

195

3,448

92

54

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

543,581

51,126275,119

296,446

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Nine Months Ended December 31, 2021
(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Reversal of allowance for doubtful accounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sales of trade receivables
Foreign exchange losses
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on bargain purchase
Gain on reversal of impairment losses
Penalty income
Other
Total extraordinary income
Extraordinary losses
Business restructuring expenses
Loss on retirement of non-current assets
Loss on sales of non-current assets
Impairment loss
Loss on valuation of investment securities
Loss on sales of investment securities
Total extraordinary losses
Profit (loss) before income taxes
Income taxes–current
Income taxes–deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

Cumulative Third Quarter of
Cumulative Third Quarter of
the Previous Fiscal Year
the Current Fiscal Year
(From April 1, 2020 to December (From April 1, 2021 to December
31, 2020)
31, 2021)
296,207410,343
265,923
343,985
30,284
66,35840,45260,362(10,168)
5,995

6

328
402

32
349

−

111

−
2
441
1,176

593
904
375
2,367

791
126
28

1,214
11
−

2,431

−

275
3,654
(12,646)

757
1,983
6,379

84
6
1,679
−
−
−
1,770

1,123
265
−
188
164
13
1,755

179
25
−
18
230
−
453
(11,329)
112
(796)
(684)
(10,645)(159)(10,485)

331
44
0
−
556
2
935
7,199
1,600
169
1,770
5,429
14
5,415

Quarterly Consolidated Statements of Comprehensive Income
Nine Months Ended December 31, 2021
(Million yen)

Profit (loss)

Cumulative Third Quarter of
Cumulative Third Quarter of
the Previous Fiscal Year
the Current Fiscal Year
(From April 1, 2020 to December (From April 1, 2021 to December
31, 2020)
31, 2021)(10,645)
5,429

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income

157

(409)

10
(667)

21
(54)

(1,290)

3,674

(766)

20

(2,556)

3,252(13,202)

8,682(13,042)

8,668

(159)

14

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests7

(3) Notes to Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable.
(Consolidated Statements of Income)*Share of loss of entities accounted for using equity method
Nine months ended December 31, 2020 (from April 1, 2020 to December 31, 2020)
Creditors of Universal Pulp and Paper (Shandong) Co., Ltd., a subsidiary of Mission Sky Group Limited, theCompany's equity-method affiliate, filed for bankruptcy due to a cash crunch, and it was accepted by the
district court. This includes share of loss of entities accounted for using equity method of 2,463 million yen.
Nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)
Not applicable.
(Notes on significant changes in the amount of shareholders’ equity)(Cancellation and disposal of treasury shares)
The Company resolved to cancel treasury shares at the meeting of Board of Directors held on September 22,
2021 in accordance with Article 178 of the Companies Act, and repurchased 1,832,998 shares of treasury
stock for cancellation on October 1, 2021.
In addition, the Company disposed of 34,182 shares of treasury stock (disposal book value: 13 million yen)through the issuance of remuneration BIP trust for corporate officers. As a result, capital surplus decreased by
540 million yen and treasury shares decreased by 553 million yen for the nine months ended December 31,
2021.

8

(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Group has adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March
31, 2020; hereinafter referred to as “Revenue Recognition Accounting Standard”) and others effective fromthe beginning of the first quarter ended June 30, 2021. Accordingly, revenue is recognized at the time of thetransfer of control for promised goods or services to customers in the amount expected to be received in
exchange for such goods or services. Major changes due to the adoption of the Revenue Recognition
Accounting Standard and others are as follows.
- Revenue recognition regarding transactions acted as agent
In the wholesale pulp and paper business, the entire amount of consideration received from customers waspreviously recognized as revenue. The method has been changed to recognize revenue by the net amount,which is the entire amount less the amount paid to the supplier, for transactions performed as agent to provide
goods or services, after the role (whether as entity itself or as agent) in the provision of goods or services tocustomers has been assessed.
- Variable consideration (sales rebate, transaction by provisional price)
Portion of the revised amount for sales rebates or transactions by provisional price previously have beentreated as cost of sales. The method has been changed to estimate the amount of variable portion of
consideration for transactions when providing goods or services to customers, and to include such amount in
the transaction price.
In adopting the Revenue Recognition Accounting Standard and others, in accordance with the transitional
treatment set forth in the proviso of Paragraph 84 of the Revenue Recognition Accounting Standard, thecumulative impact of retrospective application of the new accounting policies prior to the beginning of thefirst quarter ended June 30, 2021 was added to or subtracted from retained earnings at the beginning of thefirst quarter ended June 30, 2021. The new accounting policy has been applied from the beginning balance ofthe first quarter ended June 30, 2021.
As a result, net sales and cost of sales decreased by 11,888 million yen, respectively, for the nine months
ended December 31, 2021. There are no impacts on the retained earnings of the beginning balance of the firstquarter of the fiscal year under review.
In accordance with the transitional treatment prescribed in Paragraph 28-15 of the Accounting Standard for
Quarterly Financial Reporting (ASBJ Statement No. 12, March 31, 2020), the Company did not provide
information of disaggregated revenues from contracts with customers for the nine months ended December
31, 2020.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Group has adopted the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July4, 2019) and others effective from the beginning of the first quarter ended June 30, 2021. In accordance with9

the transitional treatment set forth in Paragraph 19 of the Fair Value Measurement Accounting Standard andParagraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019),
the new accounting policy set forth by the Fair Value Measurement Accounting Standard and others will beapplied in the future. There are no impacts on the Quarterly Consolidated Financial Statements.
(Additional Information)(Impact of COVID-19)

There are no significant changes on the impact of COVID-19 described in the securities report (significant
accounting estimates) for the previous fiscal year.

10

(Segment Information, etc.)[Segment Information]
I

Nine months ended December 31, 2020 (from April 1, 2020 to December 31, 2020)
1. Information on net sales and profit (loss) by reportable segment(Million yen)
Reportable segment

Net sales
Net sales toexternal customers
Intersegment net
sales or transfers
Total
Segment income(loss)(Notes) 1.

2.
3.

Adjustment(Note 1)

Amountrecorded in
Quarterly
Consolidated
Statements ofIncome(Note 2)296,207−296,207

13

3,722(3,722)−

108,278

949

299,930(3,722)296,207(11,456)515(8,255)(1,913)(10,168)

Wholesale pulp
and paper,
domestic
locations

Wholesale pulp
and paper,
overseas
locations

Real estateleasing

187,175

108,095

936

3,526

182

190,702
2,685

Total

The adjustment to segment profit or loss of (1,913) million yen consists of intersegment eliminations of
2 million yen and corporate expenses of (1,915) million yen. Corporate expenses are mainly general andadministrative expenses at administrative divisions of the head office that are not attributable to any
reportable segment.
Segment profit or loss is adjusted with operating profit in the Quarterly Consolidated Statements ofIncome.
In the six months ended September 30, 2020, the Group included Antalis S.A. and its 73 subsidiaries inthe scope of consolidation. This resulted in an increase in the assets of the “Wholesale pulp and paper,
overseas locations” segment by 94,990 million yen compared with before consolidation.

2. Information on impairment loss on non-current assets and goodwill by reportable segment
Not applicable.

11

II

Nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)
1. Information on net sales and profit (loss) by reportable segment(Million yen)

Adjustment(Note 1)

Amountrecorded in
Quarterly
Consolidated
Statements ofIncome(Note 2)

410,343−

410,34320

4,480(4,480)

−

947
136

414,823
8,174(4,480)(2,178)410,343
5,995

Reportable segment

Net sales
Net sales to externalcustomers
Intersegment net
sales or transfers
Total
Segment income(Notes) 1.

2.

Wholesale pulp
and paper,
domestic
locations

Wholesale pulp
and paper,
overseas
locations

Real estateleasing

191,311

218,105

926

4,317

142

195,628
3,881

218,247
4,156

Total

The adjustment to segment profit of (2,178) million yen consists of intersegment eliminations of (15)
million yen and corporate expenses of (2,162) million yen. Corporate expenses are mainly general andadministrative expenses at administrative divisions of the head office that are not attributable to any
reportable segment.
Segment profit is adjusted with operating profit in the Quarterly Consolidated Statements of Income.

2. Information on impairment loss on non-current assets and goodwill by reportable segment
Not applicable.
3. Matters on changes in reportable segments, etc.
As described in (Changes in accounting policies), the Group has adopted the Accounting Standard for
Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and others effective from the
beginning of the first quarter ended June 30, 2021, and has changed the method of accounting
treatment on revenue recognition. Accordingly, the measurement method of business segment profit orloss has also been changed.
As a result of such change, net sales of wholesale pulp and paper in domestic locations for the ninemonths ended December 31, 2021 decreased by 11,888 million yen as compared with the amountunder the previous method.

12