Financial Results for the Fiscal Year Ended March 31, 2023
[Japanese GAAP](Consolidated)
May 15, 2023

Company name: KPP GROUP HOLDINGS CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Code number: 9274
URL: https://www.kpp-gr.com/
Representative: Madoka Tanabe, Representative Director of the Board, Chairman & CEO
Contact: Shojiro Adachi, General Manager of Finance Division
Phone: +81-3-4431-7215
Scheduled date of Ordinary General Meeting of Shareholders: June 29, 2023
Scheduled date of commencing dividend payments: June 30, 2023
Scheduled date of filing the securities report: June 29, 2023
Preparation of supplementary explanatory materials for financial results: Yes
Convening financial results briefing: Yes (for institutional investors and analysts)(Amounts less than 1 million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Consolidated Operating Results(Percentages represent year-on-year changes.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Million yen

Fiscal year ended
659,656
March 31, 2023
Fiscal year ended
563,414
March 31, 2022
(Note) Comprehensive income:%Million yen%

Million yen%

Million yen

%

17.1

20,401

117.5

18,404108.1

15,722

109.7

－

9,379

－

8,844

－

7,497

－

Fiscal year ended March 31, 2023: 13,012 million yen (-6.4%)
Fiscal year ended March 31, 2022: 13,904 million yen (–%)

Basic earnings
per share

Diluted earnings
per share

Yen

Yen

Profit toshareholders’equityTotal assets
Ordinary profit
marginNet sales
Operating profit
margin%%%Fiscal year ended
219.09
－
25.4
5.9
3.1
March 31, 2023
Fiscal year ended
104.39
－
15.0
3.1
1.7
March 31, 2022
(Note) Effective from the beginning of the fiscal year ended March 31, 2022, the Group has adopted the AccountingStandard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and others. Therefore, eachamount for the fiscal year ended March 31, 2022 is an amount after the adoption of the said accounting
standard and others, and does not include any year-on-year percentage changes.
(2) Consolidated Financial Position
Total assets
As of March 31,2023
As of March 31,
2022(Reference) Equity

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

330,662

67,80820.5

944.75

290,707

56,37419.4

783.65

As of March 31, 2023: 67,730 million yen
As of March 31, 2022: 56,291 million yen

(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodMillion yen

Million yen

Million yen

Million yen

10,308(8,530)4,205

30,6994,821(2,678)(11,803)

22,631

Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022
2. Dividends

Annual dividends
1st quarterend

2ndquarterend

3rdquarterend

Year-end

Yen

Yen

Yen

Yen

Total

Yen

Ratio of
Dividend
Total
dividends
payoutamount ofto netratio
annualassets(consolid
dividends
ated)(consolida
ted)%Million yen

Fiscal year ended
－
5.00
－
9.00
14.00
1,025
13.4
March 31, 2022
Fiscal year ended
－
9.00
－
11.00
20.00
1,464
9.1
March 31, 2023
Fiscal year ending
March 31, 2024
－
11.00
－
11.00
22.00
15.0
(Forecast)(Notes) Breakdown of interim dividend for the fiscal year ended March 31, 2023: Ordinary dividend: 7.00 yen
Commemorative dividend: 2.00 yen

%

2.0
2.3

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March
31, 2024)(Percentages represent year-on-year changes.)
Profit attributable
Basic earnings
Net sales
Operating profit
Ordinary profit
to owners ofper share
parentFull year

Million yen% Million yen

650,000 (1.5)

17,000% Million yen(16.7)%

13,500 (26.6)

Million yen%

10,500 (33.2)*Notes:(1) Changes in significant subsidiaries during the fiscal year
(Changes in specified subsidiaries resulting in changes in scope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards:
No2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: Yes
4) Retrospective restatement:No(3) 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):Fiscal year ended March 31, 2023
73,244,408 sharesFiscal year ended March 31, 2022
73,244,408 shares2) Total number of treasury shares at the end of the period:
Fiscal year ended March 31, 2023
1,552,732 sharesFiscal year ended March 31, 2022
1,410,953 shares

Yen

146.32

3) Average number of shares during the period
Fiscal year ended March 31, 2023
Fiscal year ended March 31, 2022

71,762,323 shares
71,823,736 shares(Reference) Summary of Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Non-Consolidated Operating Results(Percentages represent year-on-year changes.)
Net sales
Operating profit
Ordinary profit
ProfitMillion yen%

Million yen%

Million yen%

Million yen%

136,695(47.0)

1,474(23.4)

1,728(46.8)

1,911

7.3

257,822

1.9

1,925

29.2

3,246

－

1,782

－

Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

Basic earnings per
share

Diluted earnings per
share

Yen

Yen

Fiscal year ended
26.64－
March 31, 2023
Fiscal year ended
24.82－
March 31, 2022
(Note) Following the transition to a holding company structure, the Company carried out a corporate split in anabsorption-type company split on October 1, 2022, and had Kokusai Pulp & Paper Split Preparation Company(a wholly-owned subsidiary of the Company), which was the succeeding company in the absorption type split(and which changed its trade name to Kokusai Pulp & Paper Co., Ltd. on October 1, 2022), succeed the pulp
and paper wholesaling business of the Company. Therefore, there is a difference in actual values between theprevious fiscal year and the fiscal year under review.
(2) Non-Consolidated Financial Position
Total assets
Fiscal year ended March
31, 2023
Fiscal year ended March
31, 2022(Reference) Equity:

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen79,38845,00856.7

627.81

165,694

43,991

26.5

612.41

Fiscal year ended March 31, 2023: 45,008 million yen
Fiscal year ended March 31, 2022: 43,991 million yen* These consolidated financial results are outside the scope of audits by certified public accountants or auditing firms.
* 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 “(4) Future Outlook” in “1.
Overview of Operating Results, Etc.” of the attachments.
(How to obtain supplementary explanatory materials for financial results)
The Company plans to hold a briefing for institutional investors and analysts on Wednesday, June 7, 2023. The
explanatory materials for financial results distributed at the briefing will be posted on the Company’s website assoon as it is held.

○ Table of Contents of Attachments
1. Overview of Operating Results, Etc. ...................................................................................................................... 2(1) Overview of Operating Results for the Current Fiscal Year ......................................................................... 2(b) Overview by Segment ................................................................................................................................... 2(2) Overview of Financial Position for the Current Fiscal Year ......................................................................... 3(3) Overview of Cash Flows for the Current Fiscal Year ................................................................................... 4(4) Future Outlook .............................................................................................................................................. 4
2. Basic Approach to the Selection of Accounting Standards ..................................................................................... 5
3. Consolidated Financial Statements and Key Notes ................................................................................................ 6(1) Consolidated Balance Sheets ........................................................................................................................ 6(2) Consolidated Statements of Income and Comprehensive Income ................................................................ 8(3) Consolidated Statements of Changes in Equity ...........................................................................................11(4) Consolidated Statements of Cash Flows ..................................................................................................... 13(5) Notes to Consolidated Financial Statements ............................................................................................... 15(Notes on Going Concern Assumption).................................................................................................... 15(Changes in Accounting Estimates) .......................................................................................................... 15(Segment Information, Etc.) ……………………………………………………………………………15(Per-share Information) ............................................................................................................................ 18(Significant Subsequent Events) ............................................................................................................... 19

1

1. Overview of Operating Results, Etc.
(1) Overview of Operating Results for the Current Fiscal Year(a) Status of Operating Results
In the fiscal year under review, the Japanese economy finally saw signs of an economic recovery showing up
as COVID-19 infections calmed down and the government eased border measures for entry to Japan andstarted domestic travel subsidy programs. On the other hand, however, new challenges have arisen: theprogression of cost-push inflation, caused by surges in raw materials and fuels, and serious labor shortages.
In the global economy as well, demand has begun to slow down due to the recession resulting from monetary
tightening and high inflation, especially in Europe and the United States, and China’s economy too has
remained stagnant with the impact of its zero-COVID policy lingering. Despite these circumstances, theGroup managed to expand its earnings both in Japan and overseas primarily by expanding the packaging
business through price policy and M&A.
Consequently, the Group’s consolidated net sales for the fiscal year under review were 659,656 million yen(up 17.1% year-on-year), operating profit came to 20,401 million yen (up 117.5% year-on- year), ordinary
profit posted 18,404 million yen (up 108.1% year-on-year), and profit attributable to owners of parent was
15,722 million yen (up 109.7% year-on-year).
On October 1, 2022, the Company transitioned to a holding company structure and had its wholly owned
subsidiary, Kokusai Pulp & Paper Split Preparation Company, succeed the pulp and paper wholesaling
business. On the same date, the Company also changed its trade name from Kokusai Pulp & Paper Co., Ltd.
to KPP Group Holdings Co., Ltd., and Kokusai Pulp & Paper Split Preparation Company changed its tradename to Kokusai Pulp & Paper Co., Ltd.
In addition, the category of reportable segments was changed with the organizational restructuring which
followed the transition to the holding company structure. The following year-on-year comparison is madewith figures for the same period of the previous fiscal year after regrouping into the reportable segments after
such change.
(b) Overview by Segment
Results for the fiscal year ended March 31, 2023 by business are as follows.
<Northeast Asia>
Japan
In the paper field, net sales grew by means of the second and third rounds of price revision althoughsales volume fell from the previous year as the digitization of information media sped up, and the use ofgraphic paper did not stop falling.
The paperboard segment saw annual sales volume decline year-on-year for corrugated cardboard basepaper due to decreased exports and a fall in consumption caused by inflation, despite persistently strong
sales for beverage packaging materials. As for packaging paperboard, sales volume fell year-on-year as
inbound demand was hoped for but a recovery was limited.
The paper production material segment saw both sales volume and net sales significantly grow year-onyear though the effort to diversify the collection methods amid a decline in waste paper generation in
Japan. As for commercial pulp, demand from domestic household paper manufacturers fell, and sales
volume decreased year-on-year. Yet, net sales greatly exceeded the previous year, helped by increased
sales unit prices.
China
Both sales volume and net sales decreased year-on-year due to the stagnant economy resulting from its
zero-COVID policy, which lasted until early December 2022, and confusion in society, caused by theensuing surging infections. Profit too considerably fell year-on-year as the paper market deteriorated
significantly in the latter half of the year in the wake of an economic slowdown and a worsening of thedemand and supply balance.
2

As a result, net sales of the Northeast Asia business were 305,461 million yen (up 6.3% year-on-year),and segment profit came to 3,432 million yen (down 1.3% year-on-year).
<Europe/South America>
The European business saw a tight supply and demand situation last until the middle of the year resulting
from a series of factors including a container shortage and industrial actions of major paper
manufacturers. In addition, a series of price revisions due to soaring prices of raw materials and fuelsalso helped the performance of the paper business improve significantly. In the packaging business as
well, the performance improved year-on-year due to a recovery in demand and an expansion of businesssize via M&A. As for the visual communication business as well, various events and demand for vehicle
graphics were boosted, resulting in the performance staying firm. In Latin America, performance wassolid and firm, mainly in the packaging business.
As a result, net sales of the Europe business and the South America business were 303,709 million yen(up 28.5% year-on-year), and segment profit was 16,453 million yen (up 176.0% year-on-year).
<Asia Pacific>
Oceania
In the ANZ market (Australia and New Zealand), prices remained on an upward trend due to surging raw
material and fuel prices in addition to a recovery from the pandemic. Both net sales and profit increased
partly due to the impact of the expanded business size brought about by the M&A that the Group had
worked on so far.
Southeast Asia
In the ASEAN region, although the economy has yet to fully recover, the profit and loss situation
improved due to the effects of business restructuring. Net sales of the Southeast Asia business increased
year-on-year due to the contribution made by the visual communication business to the performancethrough Singapore investment deals.
As a result, net sales of the Asia Pacific business were 49,269 million yen (up 28.3% year-on-year), andsegment profit posted 2,186 million yen (up 77.2% year-on-year).
<Real Estate Leasing>In the office market in major cities across the nation, the average vacancy rate, which has been on an
upward trend since the expansion of COVID-19, is gradually improving. However, the market outlook
is uncertain as new buildings are nearing the completion of construction. Rent prices have remained
weak due to rent adjustments to secure tenants.
Net sales and profit decreased year-on-year as rent revenue fell mainly due to vacancy periods arisingfrom the redevelopment of rental parking lots and occupant replacement for the KPP Yaesu Building.
This was despite seeing increased sales at some leased building spaces of the Group owing to a
management system revamp.
As a result, net sales of the Real Estate Leasing business were 1,216 million yen (down 1.2% year-onyear), and segment profit posted 115 million yen (down 34.3% year-on-year).
(2) Overview of Financial Position for the Current Fiscal Year
(Assets)
Total assets at the end of the fiscal year under review were 330,662 million yen, up 39,955 million yen fromthe end of the previous fiscal year. This was mainly due to an increase in merchandise and finished goods andan increase in cash and deposits.

3

(Liabilities)
Liabilities were up 28,521 million yen to 262,853 million yen from the end of the previous fiscal year. Thiswas mainly due to increases in short-term borrowings and bonds payable.
(Net assets)
Net assets grew 11,433 million yen to 67,808 million yen from the end of the previous fiscal year, and theequity ratio rose 1.1 points to 20.5% from the end of the previous fiscal year. This was mainly due to anincrease in profit attributable to owners of parent and an increase in foreign currency translation adjustment.
(3) Overview of Cash Flows for the Current Fiscal Year
Cash and cash equivalents at the end of the fiscal year under review (hereinafter referred to as “funds” ) were
30,699 million yen, up 8,068 million yen from the end of the previous fiscal year. This was a result of
appropriating funds provided by mainly profit before income taxes and the issuance of bonds to purchase of
inventories and non-current assets.
Funds provided by operating activities totaled 10,308 million yen (funds provided by operating activities of
4,821 million yen for the previous fiscal year). This was mainly due to the acquisition of profit before income
taxes, the reporting of depreciation, and acquisition of inventories.
Funds used in investing activities totaled 8,530 million yen (funds used in investing activities of 2,678 million
yen for the previous fiscal year). This was mainly due to purchases of non-current assets and shares ofsubsidiaries.
Funds provided by financing activities totaled 4,205 million yen (funds used in financing activities of 11,803
million yen for the previous fiscal year). This was mainly due to an issuance of bonds and the repayment oflease obligations.
(4) Future Outlook
In the future outlook, the business environment is expected to remain uncertain primarily due to concerns
over an economic downturn, resulting from Russia’s prolonged invasion of Ukraine, rising inflation and atightening monetary policy. In the Japanese economy, the outlook is likely to stay uncertain mainly due torises in various consumer goods prices and restraints on wage increases although a further recovery in inbounddemand is hoped for and consumer confidence is expected to rise with the policy to live with and manage
COVID-19 underway.
Under these circumstances, the consolidated results forecast for the fiscal year ending March 31, 2024 is asfollows.
Net sales
Results forecast for
the fiscal year ending
March 31, 2024
Operating results forthe fiscal year ended
March 31, 2023
Changes

Operating profit

Ordinary profit

Profit attributableto owners of parent

Million yen

Million yen

Million yen

Million yen

650,000

17,00013,50010,500659,656

20,401

18,404

15,722(9,656)(3,401)(4,904)(5,222)In the fiscal year ended March 31, 2023, the Group recorded the highest performance through a temporary
expansion of gains from sale of inventories in the wake of a rise in selling prices mainly in the paper businessin Northeast Asia, centered on Japan, Europe/South America and Oceania.
For the fiscal year ending March 31, 2024, the paper business expects demand for graphic paper to decreasein each segment region. But the Company will secure a certain level of profit as it expects selling prices to be4

maintained. However, the one-time profit, which was generated in inventories sales in the previous year, islikely to disappear. Consequently, the Company expects to see a decrease in profit as a whole. The packaging
business and the visual communication business in Europe, South America and Oceania are expected to offset
the downturn of the paper business primarily due to the full-year contribution from the financial results of an
operational company acquired through M&A and accommodating robust demand.
In light of the above, it is expected that net sales will be at the same level as the previous fiscal year and profit
in each stage will decline.
The assumed exchange rates are 130.0 yen/euro, 80.0 yen/Australian dollar, 125.0 yen/U.S. dollar and 17.0
yen/yuan.
*Notes on forward-looking information
The results forecast and other forward-looking statements contained herein are based on information currently
available to the Company and certain assumptions deemed to be reasonable. Actual results may differ
substantially due to various factors, and the forecast and other forward-looking statements are not intended asa guarantee that the Company will achieve them.

2. Basic Approach to the Selection of Accounting Standards
For the time being, the Group has a policy to prepare consolidated financial statements in accordance withJapan GAAP, taking into account the comparability of consolidated financial statements over time and among
entities.
Regarding the adoption of the International Financial Reporting Standards (IFRS), the Group will respond
appropriately in consideration of various domestic and international situations.

53. Consolidated Financial Statements and Key Notes(1) Consolidated Balance Sheets(Million yen)Previous Fiscal Year
(March 31, 2022)

Current Fiscal Year
(March 31, 2023)

AssetsCurrent assets
Cash and deposits

22,63430,731

Notes receivable–trade
Accounts receivable–trade

10,787
100,380

8,801
104,583

Electronically recorded monetary claims–operating
Merchandise and finished goods

15,79751,27019,48972,237

Other
Allowance for doubtful accounts

14,830(5,177)

14,655(6,901)

Total current assets

210,523

243,596

Buildings and structures, net
Machinery, equipment and vehicles, net

6,333
1,467

8,163
1,721

Tools, furniture and fixtures, net
Land

1,184
9,268

1,642
9,189

Leased assets, net
Right-of-use assets, net

210
14,997239
15,706

Non-current assets
Property, plant and equipment

Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Software
Customer-related intangible assets

734

402

34,19637,063

4,508

5,330

4,583

6,139
2,277

－
156

Other
Total intangible assets

148

9,248

13,896

Investment securities
Long-term loans receivable

17,02822

17,971
16

Deferred tax assets
Retirement benefit asset

1,499
16,518

5,378
9,554

Other
Allowance for doubtful accounts

11,809(10,139)

13,594(10,411)

Total investments and other assets

36,73836,10480,18387,065

290,707

330,662

Investments and other assets

Total non-current assets
Total assets

6

(Million yen)Previous Fiscal Year
(March 31, 2022)

Current Fiscal Year
(March 31, 2023)

Liabilities
Current liabilities
Notes and accounts payable–trade
Electronically recorded obligations–operating

90,743
3,760

93,570
3,848

Short-term borrowings
Commercial papers

26,615
11,00052,88410,000

Advances received
Lease obligations

1,961
4,853

1,513
5,347

Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for point card certificates

1,264
3,290

4,034
4,324

184

220

23

21

25
759

30
1,010

Provision for risk costs
Other

76
25,606362
30,778

Total current liabilities

170,164

207,947－
42,622
11,75010,000

Deferred tax liabilities
Provision for retirement benefits for directors (andother officers)
Provision for share awards for directors (and otherofficers)
Provision for risk costs
Retirement benefit liability

1,910

5,346

18

1

166

271

384
4,616

432
2,111

Asset retirement obligations
Other

434
2,263

438
2,283

Provision for product warranties
Provision for loss on business liquidation

Non-current liabilities
Bonds payable
Long-term borrowings
Lease obligations

Total non-current liabilities

21,425
12,59364,16754,905234,332

262,853

Shareholders’ equity
Capital stock

4,723

4,723

Capital surplus
Retained earnings

7,292
38,225

7,292
52,629Total liabilities
Net assets

Treasury shares

(535)

(788)

Total shareholders’ equity

49,70563,857

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

3,480

4,056

Deferred gains or losses on hedges
Foreign currency translation adjustment

(112)
(782)

33
1,405

Remeasurements of defined benefit plans

4,000(1,623)

Total accumulated other comprehensive income

6,586

3,872

82

77

Non-controlling interests
Total net assets
Total liabilities and net assets

7

56,37467,808

290,707

330,662(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income

Net sales
Cost of sales(Million yen)Previous Fiscal Year
Current Fiscal Year
(From April 1, 2021 to March 31, (From April 1, 2022 to March 31,
2022)
2023)
563,414659,656
470,463
539,072

Gross profit

92,951

120,584

Selling, general and administrative expenses
Selling expenses

15,61618,104

Employees’ salaries and allowances
Provision for bonuses

30,491
3,265

34,818
4,235

Provision for bonuses for directors (and other officers)
Retirement benefit expenses

184
1,863

218
648

Provision of allowance for doubtful accounts
Provision for retirement benefits for directors (and otherofficers)
Provision for share awards for directors (and otherofficers)
Other

255

1,591

1

－

68

208

31,82340,358

Total selling, general and administrative expenses

83,571

100,182

9,379

20,401

31

53

385

444

103

48

373
933

－
1,160

Operating profit
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

336

622

2,164

2,328

1,604
393

1,634
835

－
388

675
543

Non-operating expenses
Interest expenses
Loss on sales of trade receivables
Foreign exchange losses
Insurance expenses
Other
Total non-operating expenses
Ordinary profit

8

312

637

2,699

4,325

8,844

18,404

(Million yen)Previous Fiscal Year
Current Fiscal Year
(From April 1, 2021 to March 31, (From April 1, 2022 to March 31,
2022)
2023)
Extraordinary income
Gain on sales of non-current assets

1,344

922

265
345

48

Total extraordinary income

1,956

971

Extraordinary losses
Business restructuring expenses

331

－
14
31

Gain on sales of investment securities
Other

Loss on sales of non-current assets
Loss on retirement of non-current assets

1
348

Impairment loss
Reversal of foreign currency translation adjustment

204
－
681
4

Loss on valuation of investment securities
Other
Total extraordinary losses

－

－
19
－
0

1,572

66

Profit before income taxes

9,227

19,309

Income taxes–current

2,892

4,568

Income taxes–deferred(1,178)(984)

Total income taxes

1,713

3,583

Profit7,513

15,725

16

3

7,497

15,722

Profit attributable to non-controlling interests
Profit attributable to owners of parent

9Consolidated Statements of Comprehensive Income

Profit(Million yen)Previous Fiscal Year
Current Fiscal Year
(From April 1, 2021 to March 31, (From April 1, 2022 to March 31,
2022)
2023)
7,513
15,725

Other comprehensive income
Valuation difference on available-for-sale securities

(317)

575

Deferred gains or losses on hedges
Foreign currency translation adjustment

(58)
555

146
2,147

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

6,168(5,624)42

40

Comprehensive income

6,390(2,713)

13,90413,012

13,88816

13,0093Comprehensive income attributable to
Owners of parent
Non-controlling interests10(3) Consolidated Statements of Changes in Equity
Previous fiscal year (From April 1, 2021 to March 31, 2022)(Million yen)
Shareholders’ equity

Balance at beginningof period
ChangesduringperiodDividendsofsurplusProfit attributableto owners of parent
Cancellationoftreasury shares
Disposaloftreasury shares
Net changes in
items other thanshareholders’equityTotal changes during
periodBalance at end of
periodCapital stock

Capital surplus

4,723

7,833

Retainedearnings
31,826

Treasury shares

Total
shareholders’equity(1,089)43,293(1,098)(1,098)

7,497

7,497

(540)

540

－

12

12

－

(540)

6,398

553

6,411

4,723

7,292

38,225(535)

49,705

Accumulated other comprehensive income
Valuation
Deferred gains Foreign currency Remeasurements Non-controlling Total net assets
difference oninterests
or losses ontranslationof defined
available-forhedges
adjustment
benefit planssale securities
Balance at beginningof period
ChangesduringperiodDividendsofsurplusProfit attributableto owners of parent
Cancellationoftreasury shares
Disposaloftreasury shares
Net changes in
items other thanshareholders’equityTotal changes during
periodBalance at end of
period

3,798

(54)

(1,380)(2,167)92

43,581(1,098)
7,497
－
12
(317)

(58)

597

6,168

(10)

6,380

(317)

(58)

597

6,168

(10)

12,792

3,480

(112)

(782)

4,000

82

56,37411

Current fiscal year (From April 1, 2022 to March 31, 2023)(Million yen)
Shareholders’ equity

Balance at beginningof period
ChangesduringperiodDividendsofsurplusProfit attributableto owners of parent
Purchaseoftreasury shares
Disposaloftreasury shares
Changeinownership interestof parent due totransactions with
non-controllinginterests
Net changes in
items other thanshareholders’equityTotal changes during
periodBalance at end of
periodCapital stock

Capital surplus

4,723

7,292

Retainedearnings

Treasury shares

Total
shareholders’equity(535)

49,70538,225(1,318)(1,318)15,722

15,722
(354)

(354)

102

102

(0)

(0)

－

(0)

14,403(252)

14,151

4,723

7,292

52,629(788)

63,857

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginningof period
ChangesduringperiodDividendsofsurplusProfit attributableto owners of parent
Purchaseoftreasury shares
Disposaloftreasury shares
Changeinownership interestof parent due totransactions with
non-controllinginterests
Net changes in
items other thanshareholders’equityTotal changes during
periodBalance at end of
period3,480

Deferred gains Foreign currency Remeasurements Non-controlling Total net assetsinterests
or losses ontranslationof defined
hedgesadjustment
benefit plans
(112)

(782)

4,000

82

56,374(1,318)15,722
(354)
102

(0)

575

146

2,188

(5,624)(4)(2,717)

575

146

2,188

(5,624)(4)

11,433

4,056

33

1,405

(1,623)77

67,80812

(4) Consolidated Statements of Cash Flows(Million yen)Previous Fiscal Year
Current Fiscal Year
(From April 1, 2021 to March 31, (From April 1, 2022 to March 31,
2022)
2023)
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Share of loss (profit) of entities accounted forusing equity method
Loss (gain) on valuation of investment securities
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement
benefits for directors (and other officers)
Increase (decrease) in provision for share awards
for directors (and other officers)
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for point cardcertificatesInterest and dividend income

9,227
7,226

19,309
7,706

204
638

－
1,227

(103)

(48)

681
51

－
(803)

1

(16)

55

105

948

815

136

30

(968)

179

(3)

(1)

(416)

(497)

1,604

1,634

(994)

(876)

(261)

(48)

Interest expenses
Loss (gain) on sale and retirement of non-current
assetsLoss (gain) on sale of investment securities
Reversal of foreign currency translation
adjustment
Decrease (increase) in trade receivables
Decrease (increase) in inventories

－

19

1,633
(9,982)(769)(16,374)

Decrease (increase) in other assets
Increase (decrease) in trade payables(3,585)
7,498

(603)
(272)

Increase (decrease) in other liabilities
Other

3,561
(1,154)2,457
100

Subtotal

16,001

13,273

Interest and dividends received
Interest paid

438
(1,667)516(1,752)

Income taxes paid
Net cash provided by (used in) operating
activities
Cash flows from investing activities(9,950)(1,728)

4,821

10,308

Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment andintangible assets
Proceeds from sale of property, plant andequipment and intangible assets
Purchase of investment securities

(2)
2

(28)

(3,182)(5,957)

1,795

2,617

－

(227)

(112)

Proceeds from sale of investment securities
Payments for acquisition of businesses

494
(341)

103
(345)

Loan advances
Proceeds from collection of loans receivable
Purchase of shares of subsidiaries resulting inchange in scope of consolidation

(65)
171

(44)
18

(1,247)(4,682)

13

(Million yen)Previous Fiscal Year
Current Fiscal Year
(From April 1, 2021 to March 31, (From April 1, 2022 to March 31,
2022)
2023)
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Payments for sale of shares of subsidiaries
resulting in change in scope of consolidation
Other
Net cash provided by (used in) investing
activities

5

－

(86)

－

6

(99)

(2,678)(8,530)Net increase (decrease) in short-term borrowings
Net increase (decrease) in commercial papers(44,357)
11,0001,475(1,000)

Proceeds from long-term borrowings
Repayments of long-term borrowings

28,310(874)

2,050(1,565)

Proceeds from issuance of bonds
Repayments of lease obligations－(4,783)

10,000(5,427)

Cash flows from financing activities

Purchase of treasury shares
Dividends paid
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents－(1,098)(0)(1,326)(11,803)

4,205

1,748

2,085

(7,912)

8,068

Cash and cash equivalents at beginning of period

30,543

22,631

Cash and cash equivalents at end of period

22,631

30,69914

(5) Notes to Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable.
(Changes in Accounting Estimates)
Change in the number of years of amortizing actuarial gains and losses at foreign consolidated subsidiaries
Regarding the number of years of amortizing actuarial gains and losses on the accounting treatment method
related to retirement benefits, some of the foreign consolidated subsidiaries of the Company amortized themover one to four years as the average remaining years of service of eligible employees. However, they havechanged to one to five years in light of changes to the average remaining years of service at the end of theprevious consolidated fiscal year. The impact of this change on earnings for the current fiscal year is minor.
In respect of the number of years of amortizing actuarial gains and losses relating to the defined benefit
pension plan, Antalis Ltd. in the UK, among overseas consolidated subsidiaries, has switched to thecalculation method by subtracting the average age of current employees as of the date of the consolidatedbalance sheet from the standard retirement age on the calculation of retirement benefits in lieu of thecalculation method by subtracting the average age of current employees as of the date of the consolidatedbalance sheet from the average age of retirees. As a result, effective at the end of the following fiscal year, thenumber of years of amortizing actuarial gains and losses will be changed to 11 years from the range of one to
five years.
The change was made to shift to a more realistic and reasonable calculation method because the averageremaining years of service that were calculated by the previous calculation method turned different from theactual remaining years of service.

(Segment Information, Etc.)
1.

Outline of Reportable Segments
The Company’s reportable segments are components of the Group for which separate financial
information is available and which are subject to periodic review by the Board of Directors indetermining the allocation of management resources and in assessing performance.
The Group is developing business globally, mainly in the paper business, the packaging business and thevisual communication business. Under the umbrella of the three core operating companies of Kokusai
Pulp & Paper Co., Ltd., Antalis S.A.S., and Spicers, each business plans a comprehensive strategy, etc.
and operates in each region.
Accordingly, the Group consists of regional segments, and has set up four reportable segments;“Northeast Asia,” “Europe/South America,” “Asia Pacific” and “Real Estate Leasing.”
Details of business and major countries or regions of each reportable segment are as follows:•

Northeast Asia

Paper, paperboard, pulp, waste paper, and other paper-related materials are sold in Japan, China, Taiwan,
Hong Kong, South Korea, and other countries.
•

Europe/South America

Paper, paperboard, and other paper-related materials are sold in France, the United Kingdom, Germany,
Switzerland, Chile, and other countries.

15

•

Asia PacificPaper, paperboard, pulp, waste paper, and other paper-related materials are sold in Australia, New Zealand,
Singapore, and other countries.
•

Real Estate Leasing

Real estate is leased in Japan.

2.

Matters Regarding Changes, Etc. in Reportable Segments
On October 1, 2022, the Company transitioned to a holding company structure to strengthen global
governance in line with the expansion of its business scale, reform its portfolio, expand new businesses,
and promote sustainability management.
The organization was restructured as a result of the transition, through which managerial decisionmaking, performance evaluation, and others are conducted under a structure with three affiliated core
operating companies, namely Kokusai Pulp & Paper, Antalis, and Spicers, each operating business in the
Northeast Asia, Europe/South America, and Asia Pacific regions respectively.
Against this backdrop, to provide an appropriate explanation of the Company’s businesses toshareholders and stakeholders, and from a perspective of management approach, reportable segments
have been changed by area to “Northeast Asia,” “Europe/South America,” and “Asia Pacific” from theprevious “wholesale pulp and paper, domestic locations” and “wholesale pulp and paper, overseas
locations.”
Segment information for the previous consolidated fiscal year is presented under the segment category
after such change.

3.

Method Used to Calculate Net Sales, Profit or Loss, Assets, Liabilities, and Other Items by Reportable
Segment
The method of accounting for reportable business segments is generally the same as the one employedfor preparing consolidated financial statements.
Profit in the reportable segments is based on operating profit.
Intersegment revenues and transfers are based on prevailing market prices.

16

4.

Information on Net Sales, Profit or Loss, Assets, Liabilities, and Other Items by Reportable Segment

Previous fiscal year (from April 1, 2021 to March 31, 2022)(Million yen)
Reportable segment
Northeast Europe/South
Asia Pacific
Asia
America

Real estateleasing

Total

Amountrecorded in
Adjustment consolidated(Note 1)
financialstatements(Note 2)

Net sales
Net
sales
to
externalcustomers
Intersegment net sales ortransfers

287,390

236,383

38,4091,230

563,414563,414

1,638

375

29

27

2,071

(2,071)－

Total

289,028

236,759

38,4391,258

565,485(2,071)

563,414Segment profit

3,479

5,961

1,234

176

10,850(1,471)

9,379

Segment assets

123,450

103,195

33,076

12,783

272,506

18,200290,707

Depreciation

340

5,706

973

183

7,204

22

7,226

Amortization of goodwill

105

－

533

－

638

－

638

1,419

－

－

－

1,419

－

1,419

647

1,803

65

424

2,941

241

3,182

Other items

Investmentinentities
accounted for using equity
methodIncrease in property, plant andequipment and intangible
assets(Notes) 1.

2.

Details of the adjustment are as follows.
(1) The adjustment to segment profit of (1,471) million yen consists of intersegment eliminations of(17) million yen and corporate expenses of (1,454) million yen. Corporate expenses are mainly
general and administrative expenses at administrative divisions of the head office that are not
attributable to any reportable segment.
(2) The adjustment to segment assets of 18,200 million yen consists of intersegment eliminations of(20,749) million yen and corporate assets of 38,950 million yen. Corporate assets are mainly
surplus operating funds, long-term investment funds and assets related to administrative divisionsof the head office that are not attributable to any reportable segment.
Segment profit is adjusted with operating profit in consolidated financial statements.

17

Current fiscal year (from April 1, 2022 to March 31, 2023)(Million yen)
Reportable segment
Northeast Asia

Europe/South
Asia Pacific
America

Real estateleasing

Total

Amountrecorded in
Adjustment
consolidated(Note 1)
financialstatements(Note 2)

Net sales
Net
sales
to
externalcustomers
Intersegment net sales ortransfers

305,461

303,70949,2691,216

659,656－

659,656

1,598

69

12

236

1,917

(1,917)－

Total

307,059

303,779

49,281

1,452

661,574(1,917)

659,656

Segment profit

3,432

16,453

2,186

115

22,187(1,786)

20,401

Segment assets

128,120

122,663

37,48814,384

302,656

28,005

330,662

Depreciation

423

6,042

1,044

185

7,695

10

7,706

Amortization of goodwill

64

402

761

－

1,227

－

1,227

1,489

－

－

－

1,489

－

1,489

1,288

2,675

160

1,474

5,599

357

5,957

Other items

Investmentinentities
accounted for using equity
methodIncrease in property, plant andequipment and intangible
assets(Notes) 1.

Details of the adjustment are as follows.
(1) The adjustment to segment profit of (1,786) million yen consists of intersegment eliminations of
142 million yen and corporate expenses of (1,928) million yen. Corporate expenses are mainly
general and administrative expenses at administrative divisions of the head office that are not
attributable to any reportable segment.
(2) The adjustment to segment assets of 28,005 million yen consists of intersegment eliminations of(39,237) million yen and corporate assets of 67,243 million yen. Corporate assets are mainly
surplus operating funds, long-term investment funds and assets related to administrative divisionsof the head office that are not attributable to any reportable segment.
2. Segment profit is adjusted with operating profit in consolidated financial statements.

(Per-share Information)
Previous Fiscal Year
(From April 1, 2021 to March 31,
2022)
783.65 yen
104.39 yen－

Current Fiscal Year
(From April 1, 2022 to March 31,
2023)
944.75 yen
219.09 yen－

Net assets per share
Basic earnings per share
Diluted earnings per share(Notes) 1. Diluted earnings per share is not stated as there are no dilutive shares that have a dilutive effect.
2. In calculating “net assets per share,” the Company’s shares owned by the executive compensation
BIP trust are included in treasury shares to be deducted from the total number of outstanding sharesat the end of the fiscal year (1,410,000 shares in the previous fiscal year, and 1,552,000 shares in
the fiscal year under review). In calculating “basic earnings per share,” the Company’s shares
owned by the executive compensation BIP trust are included in treasury shares to be deducted in
the calculation of average number of shares during the fiscal year (1,420,000 shares in the previous
fiscal year, and 1,482,000 shares in the fiscal year under review).
3. The basis for calculating the amount of net assets per share is as follows.

18

End of the Previous Fiscal Year
(March 31, 2022)

End of the Current Fiscal Year
(March 31, 2023)

56,37467,808

82

77

(82)

(77)

56,29167,73071,833

71,691

Previous Fiscal Year
(From April 1, 2021 to March
31, 2022)

Current Fiscal Year
(From April 1, 2022 to March
31, 2023)

7,497

15,722

－

－

7,497

15,722

71,824

71,762――

Total net assets (million yen)Amount to be deducted from total net assets(million yen)(Non-controlling interests (million yen))
Net assets at the end of the fiscal year related tocommon shares (million yen)
Number of common shares at the end of the fiscal
year used for calculation of net assets per share(thousand shares)

4.

The basis for calculating earnings per share is as follows.

Earnings per share
Profit attributable to owners of parent (million
yen)
Amount not attributable to common shareholders(million yen)
Profit attributable to owners of parent related tocommon shares (million yen)
Average number of common shares during the
fiscal year (thousand shares)
Outline of dilutive shares not included in thecalculation of diluted earnings per share because
they have no dilutive effect(Significant Subsequent Events)
On April 11, 2023, Kokusai Pulp & Paper Co., Ltd., a consolidated subsidiary of the Company, received an
on-site inspection by the Japan Fair Trade Commission on suspicion of antimonopoly law violations inconnection with a bidding for recycled roll paper for which the National Printing Bureau, an independentadministrative agency, planned to issue orders. The Company and Kokusai Pulp & Paper Co., Ltd. take thefact that an on-site inspection was conducted seriously and will cooperate fully with inspections by the Japan
Fair Trade Commission.
The investigation is ongoing and it is difficult at this point in time to reasonably estimate the impact on theGroup’s financial condition and operating results.

19