(Reference Materials)

Financial Results for the First Quarterof the Fiscal Year Ending March 2022

August 2021

KOKUSAI PULP & PAPER CO., LTD.
Tokyo Stock Exchange 1st Section

9274

Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2022 :Significantly improved from the same period of the previous year

Sales
Operatingprofit・ Antalis of France, which was acquired in July 2020, made a full contribution. Sales increased for over ¥53 billion
from the same period of the previous year.
・ Packaging business made up for stagnant paper business and visual communication business, which were affectedby the spread of COVID-19.
・ Increased by acquired Spicers of Austalia / Antalis of France and price increase in paper materials.
・ Restructuring of business in China progressed steadily.
Favourable Chinese market also led to a rapid recovery in earnings.

The first quarter of the fiscal year
ending March 2022

The first quarter of fiscal year
ended March 2021
Sales ratio

Sales ratio(Million of Yen)

Sales

Year-on-yearcomparison

Variance

82,118100.0%

129,687

100.0%+47,569+57.9%

Operating profit*(2,717)-1,551

1.2%+4,268-

Ordinary profit*(2,515)-

1,797

1.4%+4,312-

Profit attributable toowners of parent*(2,690)-

1,412

1.1%+4,102-* ¥2.7 billion were recorded as provision for doubtful accounts due to the occurrence of bad dept in China business. (All the provisions for bad debts was recorded in theprevious fiscal year, and the processing has been already completed.)* As the "Accounting Standard for Revenue Recognition" (Accounting Standards Board of Japan (ASBJ) Statement No. 29) has been applied from the beginning ofthe fiscal year ending March 31, 2022, the above first quarter of fiscal year ending March 2022 is the amount after the application of the said accounting standard.

KOKUSAI PULP&PAPER CO.,LTD. ALL RIGHTS RESERVED 2021

1

Upward Revision of Full-Year Forecasts for the Fiscal Year Ending March 2022

Key points of the upward revision1

Overseas M&As

2

Restructuring
China business3

Diversebusiness portfolio

・ Antalis of France and Spicers of Australia will perform well.
Overseas segment with higher profits will reverse domestic segment. (*See page 5)・ New stock business has started six offices in China. Recovery in market conditions will also help.
This will contribute to a greater-than-expected recovery in profitability.
We also expect synergies with the Antalis China business.
・ Packaging business will grow thanks to growing demand for stay-at-home and e-commerce demand.
Paper business and visual communication business of overseas subsidiaries will perform well along withrecovery of economic activities.

Forecasts for the fiscal year
ending March 2022
(announced in May 2021)

Revised forecasts for the fiscal year ending
March 2022
(has announced in August 2021)

Sales ratio(Million of Yen)

Sales ratio

ChangeChange %534,000

100.0%

545,000

100.0%+11,000+2.1%

Operating profit

4,900

0.9%

5,900

1.1%

+1,000+20.4%

Ordinary profit

3,4000.6%

5,0000.9%+1,600+47.1%

Profit attributable toowners of parent

2,300

0.4%

4,200

0.8%

+1,900+82.6%Sales* As the "Accounting Standard for Revenue Recognition" (Accounting Standards Board of Japan (ASBJ) Statement No. 29) has been applied from the beginning of
the fiscal year ending March 31, 2022, the above first quarter of fiscal year ending March 2022 is the amount after the application of the said accounting standard.

KOKUSAI PULP&PAPER CO.,LTD. ALL RIGHTS RESERVED 20212

Forecast for the Fiscal Year Ending March 2022/ Initial vs Revised Forecasts(Million of yen)③④⑤⑥②①
Initial forecasts
on 14th May

Antalis*FranceSpicers*Australia① Improvement of paper materials prices
and reduction of SG & A expenses

Supplement② Paper Business：Increasing thanks to higher prices
Package Business：Continuous and steady demand
Visual Communication Business：Recovery in demand
Financial Expenses：Significant improvement in interestrates.

Keishin Papers*ChinaAllowance
Othersfor doubtful
accounts*in China business

RevisedForecasts
on 11th August③ Steady performance due to higher paper prices from March 2021

④ Strong sales at six regional offices. Although market prices rose in thefirst half of this year, there is a concern that prices would dropin the second half (factored in the forecast).
⑤ Collection of allowance for doubtful accounts recorded in theprevious fiscal year (fixed).
⑥ We anticipate a risk of lower sales due to the spread of the COVID-19
in Southeast Asia and other regions.

KOKUSAI PULP&PAPER CO.,LTD. ALL RIGHTS RESERVED 2021

3

Overview of Financial Results for First Quarter of the Fiscal Year Ending March 2022
and Trends in Business Performance around COVID-19 Pandemic■ The negative impact of COVID-19 on the economy is likely to settle down.
BeforeCOVID-19 pandemic

Economic deterioration
at the beginning of
COVID-19 pandemicFirst quarter of thefiscal year ended
March 2020

First quarter of thefiscal year ended
March 2021

Sales
ratio

Sales
ratio

Effects of M&As in overseas and resumption of economic activities

First quarter of thefiscal year ending March 2022
(actual)Year-onyear
comparison

Sales
ratio

(Million of Yen)

The fiscal year ending March 2022
(forecasts)
Initialforecasts
on 14thMay

Revisedforecasts
on 11thAug.

ChangeSales

92,254100.0%

82,118100.0%

129,687

100.0%+47,569

534,000

545,000+11,000

Gross profit

5,203

5.6%

5,558

6.8%

20,924

16.1%+15,366

82,00087,000+5,000

SG & A

4,734

5.1%

8,276

10.1%

19,37214.9%+11,096

77,10081,100+4,000Operatingprofit469

0.5%(2717)(3.3%)

1,551

1.2%

+4,2684,900

5,900+1,000

Allowancefor doubtful
accounts
reversal

13-

15-

549-

+534-

--

Ordinary
profit624

0.7%(2515)(3.1%)

1,797

1.4%

+4,312

3,400

5,000

+1,600

Profitattributableto owners ofparent

606

0.7%

(2690)(3.3%)

1,412

1.1%

+4,102

2,300

4,200

+1,900*The Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29), etc. has been applied from the beginning of the FY ending March 31,2022, the above-mentioned results for The first quarter of FY ending March 31, 2022, and the forecasts of FY2021 are the amounts after the application of them."

KOKUSAI PULP&PAPER CO.,LTD. ALL RIGHTS RESERVED 2021

4

Overview of Financial Results for First Quarter of the Fiscal Year Ending March 2022
[By segment]
and Trends in Business Performance around COVID-19 Pandemic■ The impact of bad debt in Hong Kong and China business that occurred in the previous
fiscal year, has been resolved. The effect of overseas M&As has become apparent.
BeforeCOVID-19 pandemic

Economic deterioration
at the beginning ofCOVID-19 pandemicFirst quarter of thefiscal year ended
March 2020

First quarter of thefiscal year ended
March 2021

73,55658,08260,888+2,806+4.8%

Segment profit

998

467

1,175+708+151.6%

Profit ratio

1.4%

0.8%

1.9%

+1.1%

-

18,39923,724

68,489+44,765+188.7%4(2710)1,035+3,745-

Profit ratio

0.0%

-

1.5%

--

Sales

297

311

310(1)(0.3%)

Segment profit

144

168

43(125)(74.4%)

Profit ratio

48.5%

54.0%

13.9%

(40.1%)-Sales

92,254

82,118

129,687+47,569+57.9%

Segment profit

1,147(2073)

2,253+4,326-

Adjustments

(677)

(643)

(702)

(59)

-

Operating profit

469(2717)

1,551+4,268-

Profit ratio

0.5%

-

1.2%

-

-

Effects of M&As in overseas
and resumption of economic activities

First quarter ofthe fiscal year ending March 2022
Year-on-yearcomparison(Million of Yen)
Wholesale pulp
and paper,
domestic locations
Wholesale pulp
and paper,
overseas locations

Real estate leasing

TotalSales

Sales
Segment profit

Variance* As the "Accounting Standard for Revenue Recognition" (Accounting Standards Board of Japan (ASBJ) Statement No. 29) has been applied from the beginning of
the fiscal year ending March 31, 2022, the above first quarter of fiscal year endeing March 2022 is the amount after the application of the said accounting standard.

KOKUSAI PULP&PAPER CO.,LTD. ALL RIGHTS RESERVED 2021

5

Dividend Policy has revised➣ Interim dividend of ¥5 (Fixed)➣ Increasing annual dividend to ¥12

Dividend per share in the past 10 fiscal years

Interim dividend
for the first time

12Year-end dividend
10Year-end dividend

Listing Commemorative Dividend ¥2¥78+6Interim dividend

4¥52=Total

0FY 2011

2012

2013

2014

2015

2016

2017

2018

2019

20202021¥122022■ Reason for the the payment of interim dividend and the dividend increase
The acquisition of Antalis of France and Spicers of Australia has led to make our profitability stable and robust.
We will increase the dividend to ¥12 (+ ¥2) based on
our dividend policy that is stable and continuous with a dividend payout ratio of 30%.
KOKUSAI PULP&PAPER CO.,LTD. ALL RIGHTS RESERVED 2021

6Disclaimer⚫ This document contains forward-looking statements, future plans, and managementtargets related to the Company. These forward-looking statements are based on current
assumptions regarding future events and trends and are not guaranteed to be accurate.
Actual results may differ materially from those presented herein due to various factors.
⚫ Unless otherwise stated, the financial data presented herein are presented in accordancewith accounting principles generally accepted in Japan.

⚫ The Company does not necessarily make any revisions to the forward-looking statements
it has made, regardless of the occurrence of future events, etc., except when required by
the Disclosure Rules.
⚫ Information relating to other companies is based on publicly known information.

⚫ This document contains information on solicitation of offers to acquire, offer to sell, oroffer to buy any securities (hereinafter referred to as "solicitation"). It is not intended toconstitute conduct solicitation activities, nor can it be the basis for any contract orobligation.

KOKUSAI PULP&PAPER CO.,LTD. ALL RIGHTS RESERVED 2021

7

Contact
Corporate Planning Division
KOKUSAI PULP & PAPER CO., LTD.
Phone +81 (0)3-4431-7215✉ kpp_ir@kpp-gr.com

A Paper Trail for Creating the Future.
KPP Group