Business Results for the Year Ended December 31, 2022
[Japan GAAP] (Consolidated)
February 6, 2023

Company:
Stock code:
Representative:
Contact:

Listed on TSE, Prime Market
URL: https://www.thepack.co.jp

The Pack Corporation

3950
Hideaki Yamashita, President & CEO
Michihisa Fujii, Managing Director, Corporate Division
TEL: +81-6-4967-1221
Expected date of annual shareholders’ meeting:March 28, 2023
Expected starting date of dividend payment:
March 29, 2023
Expected starting date of filing of annual securities report:
March 28, 2023
Preparation of supplementary financial document: Yes
Results briefing:
Yes (for institutional investors and securities analysts)(Rounded down to million yen)
1. Consolidated business results for the year ended December 31, 2022
(January 1, 2022 through December 31, 2022)(1)

Consolidated operational results(% change from the previous corresponding period)
Profit attributable toowners of parent% Million yen%
Million yen%
Million yen
%
11.8
5,972
44.1
6,353
43.6
4,058
43.7
4,144
26.6
4,422
22.6
2,824
18.1
Year ended December 31, 2022: 4,362 million yen (up 31.2%)
Year ended December 31, 2021: 3,325 million yen (up 40.4%)

Net sales

Operating profit

Million yen

Year ended December 31, 2022
Year ended December 31, 2021
(Note) Comprehensive income

Year ended December 31, 2022
Year ended December 31, 2021

89,06079,690

Basic earnings
per shareYen
213.55148.71

Diluted earnings
per shareYen
213.38148.53

Ordinary profit

Return on equity
%
6.4
4.6

Ratio of ordinary
profit to total assets
%
7.0
5.2

Ratio of operating
profit to net sales
%
6.7
5.2

(Reference) Investment earnings/loss on equity-method(Note)(2)

Year ended December 31, 2022: - million yen
Year ended December 31, 2021: - million yen
The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29) and related guidance have been applied since thebeginning of the consolidated fiscal year under review. Figures for the fiscal year ended December 2021 reflect the retroactive
application of these accounting standards. As such, the percentage year-on-year change in net sales for the fiscal year ended
December 2021 is omitted.

Consolidated financial position
Total assets

Year ended December 31, 2022
Year ended December 31, 2021
(Reference) Owner’s equity(3)

Net assets

Million yen

Million yen

94,36587,42265,371
62,032

Capital adequacy
ratio

Net assets per share

%
69.2
70.9

Yen
3,436.46
3,261.64

As of December 31, 2022: 65,324 million yen
As of December 31, 2021: 61,955 million yen

Consolidated cash flows

Year ended December 31, 2022
Year ended December 31, 2021

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Million yen

Million yen

Million yen

Million yen

5,380
7,217

(3,762)(3,460)(1,124)(1,029)18,65318,067

2. Dividends
Dividend per share
End of 1Q End of 2Q End of 3Q

Year ended December 31, 2021
Year ended December 31, 2022
Year ending December 31, 2023
(forecast)Year-end

Ratio of total
Dividend
dividend to net
payout ratio
assets(Consolidated)(Consolidated)
Million yen
%
%
1,044
33.6
1.6
1,235
30.4
1.9
Total
dividends(Total)

Total

Yen
-

Yen
25.00
30.00

Yen
-

Yen
25.00
35.00

Yen
50.00
65.00

-

35.00

-

35.00

70.00

30.2

3. Forecast of consolidated results for the year ending December 31, 2023
(January 1, 2023 through December 31, 2023)(% change from the previous corresponding period)
Net salesFirst half (accumulated)
Full year

Million yen %43,000 8.5
94,000 5.5

Basic
Profit attributableearnings per
to owners of parent
share% Million yen
%
Yen
8.8
1,700 19.5
89.42
7.0
4,400
8.4
231.46

Operating profit

Ordinary profit

Million yen
2,300
6,400

Million yen
2,500
6,800

%
12.5
7.2

*Notes(1)

Material changes in subsidiaries during this period (changes in scope of consolidations resulting from change insubsidiaries): None

(2)

Changes in accounting policies, accounting estimates, and retrospective restatement
1) Changes in accounting policies based on revisions of the accounting standard: Yes
2) Changes in accounting policies other than ones based on revisions of the accounting standard: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None(3)

Number of issued and outstanding shares (common stock)1)

Number of issued and outstanding shares at the end of fiscal year (including treasury shares)
As of December 31, 2022:

2)

As of December 31, 2021:

19,900,000 shares

890,661 shares

As of December 31, 2021:

904,917 shares

19,005,422 shares

As of December 31, 2021:

18,993,765 shares

Number of treasury shares at the end of fiscal year
As of December 31, 2022:

3)

19,900,000 shares

Average number of shares
As of December 31, 2022:* The current financial summary is not subject to audit by certified public accountants or auditing firms.
* Explanation regarding appropriate use of business forecasts and other special instructions
Note concerning forward-looking statements
Forecasts regarding future performance in these materials are based on assumptions judged to be valid and information
available to the Company’s management at the time the materials were prepared. They do not represent guarantees by theCompany regarding future performance. Actual results may differ significantly from forecasts for various reasons.

The Pack Corporation (3950) Financial Report for Fiscal Year 2022

Contents of Attachments
1.
(1)
(2)
(3)
(4)

Overview of Operational Results
Operational Results
Financial Position
Cash Flows
Outlook

2
2
3
3
4

2.

Basic Approach to Selecting Accounting Standards

4

3.
(1)
(2)
(3)
(4)
(5)

Consolidated Financial Statement and Notes
Consolidated Balance Sheet
Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Going Concern Assumption
Changes in Accounting Policies
Segment and Other Information
Revenue recognition
Per Share Information
Material Subsequent Events

5
5
7
9
11
12
12
12
12
16
16
16

-1-

The Pack Corporation (3950) Financial Report for Fiscal Year 2022

1. Overview of Operational Results(1)

Operational Results

The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020; “Revenue Recognition
Accounting Standard” hereinafter) and related guidance have been applied since the beginning of the consolidated fiscal
year under review. The comparative analysis of the previous consolidated fiscal year reflects the retroactive application of
the Revenue Recognition Accounting Standard and related guidance. For more information, see “3. Consolidated Financial
Statements and Notes: (5) Notes to Consolidated Financial Statements, Changes in Accounting Policies: (Application of
Accounting Standard for Revenue Recognition and Related Guidance).”During the consolidated fiscal year under review, Japan’s economy, personal consumption in particular, showed signs ofrecovery. In March 2022, despite the spate of new cases attributable to the omicron variant, the quasi-states of emergency
imposed in response to COVID-19 were lifted. Nevertheless, the presence of various factors, including the soaring cost of
raw materials due to the crises in Ukraine, and other developments, as well as rapid yen devaluation on international currency
markets mean the outlook remains uncertain.
Consumer spending in the United States recovered, primarily in the service industry. However, continuing monetary
tightening by the Fed based on rate hikes amid inflationary pressures have raised concerns of a potential recession. In China,
despite the easing of the nation’s zero-COVID policy, economic prospects remain uncertain, with worsening employment
and a slowing economy.
The COVID-19 pandemic has affected Group business performance. Nevertheless, based on the “Marking Our 70th
Anniversary with Rapid Progress” slogan, Group companies have collectively worked to strengthen earnings by venturing
into new markets, making aggressive capital investments, and improving quality management.
As a result, in the consolidated fiscal year under review, net sales grew 11.8% year on year to ¥89,060 million; operating
profit grew 44.1% to ¥5,972 million; ordinary profit grew 43.6% to ¥6,353 million; and profit attributable to owners ofparent grew 43.7% to ¥4,058 million.
The business performance for each segment is given below.
(Paper Products)
The paper products segment in 2022 accounted for 70.7% of Group consolidated sales. Sales of paper bags, which accounted
for 29.5% of consolidated sales, were buoyed by recovering domestic consumer spending and tourism demand. The Pack
America Corp., an overseas subsidiary, recorded strong performance. Sales by the Pack (Shanghai) Corporation grew dueto the devalued yen. Net sales in this segment rose by 19.2% to 26,252 million yen.
Sales of folding paper cartons, which accounted for 25.0% of consolidated sales, grew by 14.3% to 22,283 million yen. Salesof cartons for takeout/delivery food products and to the e-commerce sector remained strong. Demand for souvenirs and otheritems recovered.
Sales of corrugated boxes, which accounted for 13.7% of consolidated sales, grew by 3.0% to 12,210 million yen due tocontinuing robust sales to the e-commerce and manufacturing sectors.
Printing sales, which accounted for 2.5% of consolidated sales, grew 3.2% to 2,186 million, driven by strong sales at Keihin
Tokushu Printing Corp. and NIKKO PRINT CORPORATION.
Overall, sales in this segment rose 13.4% to 62,932 million yen. Operating profit rose by 34.7% to 5,333 million yen.
(Film Packaging)
The film packaging segment accounted for 13.4% of Group consolidated sales during the fiscal year under review. Segment
sales were up 7.2% to 11,988 million yen, as the decline in sales of disposable diaper products leveled off and sales offlexible film packaging for food products remained strong. Operating profit increased by 47.0% to 583 million yen.

-2-

The Pack Corporation (3950) Financial Report for Fiscal Year 2022

(Other Businesses)
Other businesses accounted for 15.9% of Group consolidated sales in the fiscal year under review. Sales of sewn bags to
specialty retail stores were strong. This, combined with the strong performance of The Pack America Corp., resulted in sales
growth of 8.7% to 14,138 million yen and 20.0% growth in operating profits to 1,059 million yen.
(2)

Financial Position

Assets totaled 6,942 million yen at the end of 2022, up 94,365 million yen from the end of 2021. Major factors included
increases of 1,085 million yen in cash and deposits, 2,883 million yen in notes and accounts receivable-trade, 1,247 million
yen in merchandise and finished goods, and 1,626 million yen in construction in progress.
Liabilities rose by 3,603 million yen to 28,994 million yen. Major factors were growth of 2,134 million yen in notes andaccounts payable-trade and an increase of 1,168 million yen in electronically recorded obligations-operating.
Net assets grew by 3,338 million yen to 65,371 million yen. The key factor was an increase of 3,013 million yen in retained
earnings.
(3)

Cash FlowsThe balance of cash and cash equivalents at the end of 2022 rose 585 million yen to 18,653 million yen, a 3.2% gain fromthe end of 2021.
<Cash flows from operating activities>
Operating activities provided net cash of 5,380 million yen in the consolidated fiscal year under review (down 25.5% from
7,217 million yen in 2021). The principal factors were profit before income taxes of 5,925 million yen, depreciation of
1,992 million yen, and an increase in notes and accounts receivable-trade of 2,825 million yen.
<Cash flows from investing activities>
Investing activities during the consolidated fiscal year under review accounted for net cash of 3,762 million yen (vs.
3,460 million yen in 2021). The principal factors were outlays of 10,000 million yen for the purchase of securities,
3,109 million yen for the purchase of property, plant, and equipment, and 2,357 million yen for the purchase of investment
securities. Proceeds from sales of securities were 12,000 million yen.
<Cash flows from financing activities>
Due mainly to 1,043 million yen in cash dividends paid, financing activities used net cash of 1,124 million yen(vs. 1,029 million yen in 2021).

Reference: Cash flow indicators
Fiscal years ended
Capital adequacy ratio
Capital adequacy ratio based onmarket prices
Interest-bearing debt to cash flow
ratio
Interest coverage ratio

December 31,
2018
65.5

December 31,
2019
66.0

December 31,
2020
71.4

December 31,
2021
70.9

December 31,
2022
69.2

69.1

84.7

64.3

58.6

48.6

0.1

0.0

0.1

0.0

0.0

833.2

2,257.9

2,572.9

5,405.8

2,935.1

Notes:
1. Cash flow indices are calculated as follows using consolidated figures:
Capital adequacy ratio: Owner’s equity/Total assets
Capital adequacy ratio based on market prices: Market capitalization/Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt/Operating cash flows
Interest coverage ratio: Operating cash flows/Interest payments
2. Market capitalization is calculated by multiplying the closing share price at the end of the period by the number of issued andoutstanding shares at the end of the fiscal year, net of treasury shares.
3. Interest-bearing debt includes all liabilities on the consolidated balance sheet incurring interest.

-3-

The Pack Corporation (3950) Financial Report for Fiscal Year 2022

4.

Operating cash flows and interest payments, respectively, are taken from “Net cash provided by (used in) operating activities” and“Interest expenses paid” on the consolidated statement of cash flows.

(4)

Outlook

The Japanese economy was slower to recover from the COVID-19 pandemic than those of Europe and North America.
Nevertheless, Japan is expected to maintain a balance between responding to the pandemic and a return to normal economic
activity in FY2023. While exports are expected to slow due to slowing overseas economies, observers anticipate gentle
recovery driven by domestic demand, with growing personal consumption and capital investments. Both are aspects of theeconomy for which room for recovery from COVID-19 remains.
In light of these business conditions, by formulating a sustainable management policy, The Pack Group will strive to achieve
further improvements in customer satisfaction and business performance as a provider of comprehensive packaging solutions,based on its mission of bolstering social prosperity and creating satisfaction through packaging.
2. Basic Approach to Selecting Accounting Standards
The Pack Group will continue to prepare consolidated financial statements based on Japanese accounting standards. This
will allow comparisons to previous years and to financial data for other companies. We will take appropriate action withregard to the application of International Financial Reporting Standards (IFRS), accounting for the relevant factors in playin Japan and other countries.

-4-

The Pack Corporation (3950) Financial Report for Fiscal Year 2022

3. Consolidated Financial Statement and Notes(1)

Consolidated Balance Sheet
Previous fiscal year
(As of December 31, 2021)(Million yen)
Current fiscal year
(As of December 31, 2022)

Cash and deposits

15,077

16,163

Notes and accounts receivable-trade

21,00323,886

Securities

12,006

12,500

Merchandise and finished goods

AssetsCurrent assets

4,768

6,015

Work in process

867

1,032

Raw materials and supplies

794

1,108

Other

934

792

Allowance for doubtful accounts

(13)

(14)

55,43861,484

Buildings and structures, net

6,169

6,132

Machinery, equipment, and vehicles, net

6,159

5,641

348

348

Land

8,539

8,539

Construction in progress

1,441

3,068

Total property, plant and equipment

22,65823,729643

1,044

Investment securities

7,405

6,746

Deferred tax assets

416

421

Other

907

992

Allowance for doubtful accounts

(48)

(53)

Total current assets
Non-current assets
Property, plant, and equipment

Tools, furniture and fixtures, net

Intangible assets
Investments and other assets

Total investments and other assets
Total non-current assets
Total assets

-5-

8,682

8,106

31,98432,88187,422

94,365

The Pack Corporation (3950) Financial Report for Fiscal Year 2022

Previous fiscal year
(As of December 31, 2021)(Million yen)
Current fiscal year
(As of December 31, 2022)

Notes and accounts payable-trade

12,235

14,370Electronically recorded obligations-operating

5,521

6,689

Current portion of long-term loans payable

25

25

Income taxes payable

991

1,349

Provision for bonuses

267

291

Liabilities
Current liabilities

Provision for bonuses for directors (and other officers)

32

45

Other

3,206

3,283

Total current liabilities

22,27926,054Non-current liabilities
Long-term loans payable

60

34

Deferred tax liabilities

440

431

2,434

2,294

176

178

3,110

2,939

25,39028,994

2,553

2,553

Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus

3,164

3,166

Retained earnings

57,64060,654

Treasury shares(2,704)(2,661)

Total shareholders’ equity

60,654

63,713

1,212

1,391

0

(3)

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

(98)

89

Remeasurements of defined benefit plans

185

134

1,300

1,611

Share acquisition rights

63

46

Non-controlling interests

13-

62,03265,37187,422

94,365

Total accumulated other comprehensive income

Total net assets
Total liabilities and net assets-6-

The Pack Corporation (3950) Financial Report for Fiscal Year 2022(2)

Consolidated Statement of Income and Consolidated Statement of Comprehensive Income

Consolidated Statement of Income(Million yen)
Current fiscal year
(from January 1, 2022
to December 31, 2022)

Previous fiscal year
(from January 1, 2021
to December 31, 2021)
Net sales

79,69089,060

Cost of sales

60,68367,382Gross profit

19,007

21,677

Selling, general and administrative expenses

14,862

15,705

Operating profit

4,144

5,972

Interest income

108

128

Dividend income

114

136

Rent income

53

46

Compensation income-

65

Foreign exchange gains0-

Non-operating income

Other

42

51

Total non-operating income

320

428

1

1

Cost of lease revenue

920

Compensation for damages

17

9Foreign exchange losses

-

8

Other

14

6

Non-operating expenses
Interest expenses

Total non-operating expenses

42

47

4,422

6,353

Gain on sales of investment securities

18

66

Gain on sales of non-current assets

5

1

Total extraordinary income

2467

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on sales on non-current assets-

0Loss on retirement of non-current assets

92

40

Loss on valuation of investments securities-

65

Loss on sales of investment securities

31

65

Impairment loss

108

323

Total extraordinary losses

232

495

Profit before income taxes

4,214

5,925

Income taxes-current

1,408

1,947

Income taxes-deferred

(7)

(72)

Total income taxes

1,401

1,875

Profit

2,813

4,050

Loss attributable to non-controlling interests

(11)

(8)

Profit attributable to owners of parent

2,824

4,058

-7-

The Pack Corporation (3950) Financial Report for Fiscal Year 2022

Consolidated Statement of Comprehensive Income(Million yen)
Current fiscal year
(from January 1, 2022
to December 31, 2022)

Previous fiscal year
(from January 1, 2021
to December 31, 2021)
Profit

2,813

4,050

224

179

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

0

△4

213

189

Remeasurements of defined benefit plans, net of tax

72

△51

Total other comprehensive income

511

312

3,325

4,362

3,334

4,370

(9)

(7)

Deferred gains or losses on hedges
Foreign currency translation adjustment

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests-8-

The Pack Corporation (3950) Financial Report for Fiscal Year 2022

(3)

Consolidated Statement of Changes in Equity

Previous fiscal year (from January 1, 2021 to December 31, 2021)(Million yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus

2,553

Retained earnings

3,164

Total shareholders’equityTreasury shares

55,860(2,717)58,861

Changes in items during period
Dividends of surplus(1,044)(1,044)

Profit attributable to ownersof parent

2,824

2,824

Purchase of treasury shares
0

Disposal of treasury shares

(0)

(0)

13

13

Net changes in items otherthan shareholders’ equity-

Total changes in items during
periodBalance at end of current period

-

0

1,780

13

1,793

2,553

3,164

57,640(2,704)60,654Remeasurements ofdefined benefit plans

Total accumulated
other comprehensive
income112

790

Accumulated other comprehensive income
Valuation difference
on available-for-salesecurities
Balance at beginning of current
periodForeign currencytranslation
adjustment

Deferred gains orlosses on hedges

987

0

(310)

Changes in items during period
Dividends of surplus-

Profit attributable to ownersof parent-

Purchase of treasury shares-

Disposal of treasury shares-

Net changes in items otherthan shareholders’ equity

224

0

212

72

510

Total changes in items during
period

224

0

212

72

510

Balance at end of current period

1,212

0

(98)

185

1,300

Share acquisitionrightsBalance at beginning of current
period65

Non-controllinginterests

Total net assets
22

59,739Changes in items during period
Dividends of surplus(1,044)

Profit attributable to ownersof parent

2,824

Purchase of treasury shares(0)

Disposal of treasury shares

13

Net changes in items otherthan shareholders’ equity

(1)

(9)

499

Total changes in items during
period

(1)

(9)

2,292

Balance at end of current period63

1362,032-9-

The Pack Corporation (3950) Financial Report for Fiscal Year 2022

Current fiscal year (from January 1, 2022 to December 31, 2022)(Million yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

2,553

Retained earnings

3,164

Total shareholders’equityTreasury shares

57,640(2,704)60,654

Changes in items during period
Dividends of surplus(1,045)(1,045)

Profit attributable to ownersof parent

4,058

4,058

Purchase of treasury shares

(0)

(0)

42

39

Disposal of treasury shares(3)

Purchase of shares of
consolidated subsidiaries

55

Net changes in items otherthan shareholders’ equity--

Total changes in items during
periodBalance at end of current period

-

2

3,013

42

3,058

2,553

3,166

60,654(2,661)

63,713Remeasurements ofdefined benefit plans

Total accumulated
other comprehensive
income185

1,300

Accumulated other comprehensive income
Valuation difference
on available-for-salesecurities
Balance at beginning of current
periodForeign currencytranslation
adjustment

Deferred gains orlosses on hedges

1,212

0

(98)

Changes in items during period
Dividends of surplus-

Profit attributable to ownersof parent-

Purchase of treasury shares-

Disposal of treasury shares-

Purchase of shares of
consolidated subsidiaries-

Net changes in items otherthan shareholders’ equity

178

(4)

188

(51)

311

Total changes in items during
period

178

(4)

188

(51)

311

Balance at end of current period

1,391

(3)

89

134

1,611

Share acquisitionrightsBalance at beginning of current
period63

Non-controllinginterests

Total net assets
13

62,032

Changes in items during period
Dividends of surplus(1,045)

Profit attributable to ownersof parent

4,058

Purchase of treasury shares(0)

Disposal of treasury shares

39

Purchase of shares of
consolidated subsidiaries

5

Net changes in items otherthan shareholders’ equity

(17)

(13)

280

Total changes in items during
period

(17)

(13)

3,338

Balance at end of current period

46-

65,371- 10 -

The Pack Corporation (3950) Financial Report for Fiscal Year 2022

(4)

Consolidated Statement of Cash Flows(Million yen)Previous fiscal year
(from January 1, 2021
to December 31, 2021)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors andother officers
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of securities
Proceeds from sales of securities
Purchase of property, plant, and equipment
Proceeds from sales of property, plant, and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments for leasehold and guarantee deposits
Other, net
Net cash provided by (used in) investment activities
Cash flows from financing activities
Proceeds from long-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Other, net
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
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 11 -

Current fiscal year
(from January 1, 2022
to December 31, 2022)

4,214
2,029
108
(5)
36

5,925
1,992
323
5
23

13

13

(220)
(223)
1
(5)
92
12
(178)
152
1,173
301
7,503
217
(1)
(502)
7,217

(213)
(264)
1
(0)
40
(0)
65
(2,825)(1,704)
3,264
68
6,715
275
(1)
(1,6085,380(9,505)
9,607(3,219)
8
(514)
(136)
135
(21)
186
(3,460)(10,000)
12,000(3,109)3(433)(2,357)
204
(39)
(29)
(3,762)100(45)(1,045)(38)(1,029)115
2,843
15,22418,067(25)(1,043)(55)(1,124)91
585
18,067
18,653

The Pack Corporation (3950) Financial Report for Fiscal Year 2022

(5)

Notes to Consolidated Financial Statements

Going Concern Assumption
Not applicable
Changes in Accounting Policies(Application of Accounting Standard for Revenue Recognition and related guidance)
The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and the Implementation
Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30, March 26, 2021) (“AccountingStandard for Revenue Recognition and related guidance” hereinafter) have been applied since the beginning of theconsolidated fiscal year under review. Accordingly, revenue is now recognized in the amounts anticipated in exchange
for goods or services at the point in time at which control of promised goods or services shifts to the customer.
Previously, in transactions in which the Group functioned as an agent (i.e., transactions involving supplying products tocustomers), all payments received from the customer were recognized as revenue. Following this change, revenues arerecognized in the net amount after deducting from payments made by customers the amount to be paid to our suppliers.
In principle, the consolidated financial statements herein reflect the retroactive application of this change to the previous
consolidated fiscal year.
Compared to previous account processing, this change has resulted in a decrease of 486 million yen in net sales and costof sales, respectively, for the previous consolidated fiscal year.
(Application of the Accounting Standard for Fair Value Measurement and related standards)
The Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019; “Accounting Standard for
Fair Value Measurement” hereinafter) and related standards have been applied since the beginning of the consolidated
fiscal year under review. Pursuant to the transitional handling described in Paragraph 19 of the Accounting Standard for
Fair Value Measurement and Paragraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No.
10, July 4, 2019), the new accounting policies specified in the Accounting Standard for Fair Value Measurement andrelated standards will be applied to future accounts. This change has no effect on consolidated financial statements.
Segment and Other Information
1. Segment overview
The reportable segments of The Pack Group are the smallest units for which separate financial information can beobtained and for which regular examinations are performed by the Board of Directors to determine resource allocationand evaluate operational results.
The Group is engaged primarily in the manufacture and sale of paper bags, folding paper cartons, corrugated boxes, andplastic bags.
Based on the nature of the products, there are two reportable segments: Paper Products and Film Packaging.
The Group’s major products are paper bags, folding paper cartons, corrugated boxes, and printing in the Paper Products
segment and plastic bags and garment bags in the Film Packaging segment.
2. Method to determine net sales, profit or loss, assets, liabilities and other items by reportable segment
Accounting methods used for the reportable segments are generally the same as the methods used for preparation of theconsolidated financial statements.
Profit for reportable segments is stated on an operating profit basis.

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The Pack Corporation (3950) Financial Report for Fiscal Year 2022

3. Information concerning net sales and profit or loss by reportable segment and breakdown information on revenues
Previous fiscal year (from January 1, 2021 to December 31, 2021)(Million yen)
Reportable segment
Adjustment(Note 2)

Amountposted in the
consolidated
financialstatements(Note 3)22,032-

22,032

19,497-

19,497-

11,850-11,850

-

2,117

-

2,117

11,184-

11,184-

11,184-13,00813,008-13,008

11,184

66,682

13,00879,690-79,690

-

-

-

-

-

-

-

55,498

11,184

66,682

13,00879,690-79,690

-

-

-

-

-

-

-

55,498

11,184

66,682

13,00879,690-79,690

Segment profit

3,958

397

4,355

882

5,238

(1,093)4,144

Segment assets

42,674

6,964

49,638

7,088

56,72730,69587,422

Deprecation

1,657

305

1,963

59

2,022

7

2,029

Increases in property,
plant and equipment andintangible assets

2,058

370

2,428

167

2,596

45

2,641

Other
businesses(Note 1)

Total

Paper
Products

Film
Packaging

Paper bags

22,032-

22,032-

Folding paper cartons

19,497-

19,497-

Corrugated boxes

11,850-11,850Printing

2,117

-

2,117

Film packaging-

11,184

Other

-

-

55,498Other revenues
Sales to externalcustomers

Subtotal

Net sales

Revenues from contracts
with customers

Intersegment sales andtransfers
Total

Other items

Notes:
1. “Other businesses” includes supplies and other goods.
2. The adjustments are as follows:(1) The -1,093 million yen adjustment to segment profit includes the elimination of intersegment transactions of 12 million yen
not allocated to reportable segments and corporate expenses of -1,105 million yen. Corporate expenses primarily involve
the parent company’s Administrative Department.
(2) The 30,695 million yen adjustment to segment assets represents corporate assets not allocated to reportable segments.
Corporate assets mainly include the parent company’s surplus assets under management (cash and deposits of
11,040 million yen and securities of 12,006 million yen), long-term investments (investment securities of 7,045 millionyen), and the parent company’s land of 603 million yen.
(3) Adjustments to depreciation are related to the parent company’s head office assets.
3. Segment profit is adjusted for consistency with the operating profit stated in the consolidated statement of income.

- 13 -

The Pack Corporation (3950) Financial Report for Fiscal Year 2022

Current fiscal year (from January 1, 2022 to December 31, 2022)(Million yen)
Reportable segment
Paper
Products

Film
Packaging

Other
businesses(Note 1)

Subtotal

Total

Adjustment(Note 2)

Amountposted in the
consolidated
financialstatements(Note 3)

Net sales
Paper bags

26,252-

26,252-

26,252-

26,252

Folding paper cartons

22,283-22,283-22,283-22,283

Corrugated boxes

12,210-12,210-12,210-12,210Printing

2,186

-

2,186

-

2,186

-

2,186

Film packaging-

11,988

11,988-

11,988-

11,988

Other

-

-

-

14,13814,138-14,138

Revenues fromcontracts withcustomers

62,932

11,98874,921

14,13889,060-89,060

Other revenues

-

-

-

-

-

-

-

Sales to externalcustomers

62,932

11,98874,921

14,13889,060-89,060

-

-

-

-

-

-

-

Intersegment sales andtransfers
Total

62,932

11,98874,921

14,13889,060-89,060

Segment profit

5,333

583

5,917

1,059

6,976

(1,004)

5,972

Segment assets

46,706

7,590

54,297

7,632

61,92932,436

94,365

Deprecation

1,573

292

1,866

78

1,944

48

1,992

Increases in property,
plant and equipment
and intangible assets

1,592

480

2,073

122

2,196

1,409

3,605

Other items

Notes:
1. “Other businesses” includes supplies and other goods.
2. The adjustments are as follows:(1) The -1,004 million yen adjustment to segment profit includes the elimination of intersegment transactions of 12 million yen
not allocated to reportable segments and corporate expenses of -1,016 million yen. Corporate expenses primarily involve
the parent company’s Administrative Department.
(2) The 32,436 million yen adjustment to segment assets represents corporate assets not allocated to reportable segments.
Corporate assets mainly include the parent company’s surplus assets under management (cash and deposits of
11,565 million yen and securities of 12,500 million yen), long-term investments (investment securities of 6,270 millionyen), and the parent company’s land of 2,100 million yen.
(3) Adjustments to depreciation and increases in property, plant and equipment and intangible assets are related to the parent
company’s head office assets.
3. Segment profit is adjusted for consistency with the operating profit stated in the consolidated statement of income.

4. Changes to reportable segments, etc.
As noted under Changes in Accounting Policies, the Accounting Standard for Revenue Recognition and related guidance
have been applied since the beginning of the consolidated fiscal year under review. These changes affect the accounting
methods used to recognize revenue and have resulted in corresponding changes in the methods for calculating businesssegment profit or loss.
Segment information for the previous consolidated fiscal year herein has been prepared based on the methods forcalculating profit or loss applied after this change.

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The Pack Corporation (3950) Financial Report for Fiscal Year 2022

[Related information]
Previous fiscal year (from January 1, 2021 to December 31, 2021)
1.

Product- and service-specific information
This is omitted here because similar information is provided under segment information.

2.

Region-specific information(1)

Net sales
This is omitted here because sales to external customers in Japan account for more than 90% of net sales on the
consolidated statement of income.

(2)

Property, plant, and equipment
This is omitted here because the amount for property, plant, and equipment located in Japan accounts for morethan 90% of the amount for property, plant, and equipment on the consolidated balance sheet.

3.

Information specific to major customers
This is omitted here because no single external customer sales to whom account for 10% or more of net sales on the
consolidated statement of income exists.

Current fiscal year (from January 1, 2022 to December 31, 2022)
1.

Product- and service-specific information
This is omitted here because similar information is provided under segment information.

2.

Region-specific information(1)

Net sales
This is omitted here because sales to external customers in Japan account for more than 90% of net sales on the
consolidated statement of income.

(2)

Property, plant, and equipment
This is omitted here because the amount for property, plant, and equipment located in Japan accounts for morethan 90% of the amount for property, plant, and equipment on the consolidated balance sheet.

3.

Information specific to major customers
This is omitted here because no single external customer sales to whom account for 10% or more of net sales on the
consolidated statement of income exists.

[Information on impairment loss on fixed assets by reportable segment]
Previous fiscal year (from January 1, 2021 to December 31, 2021)(Million yen)
Paper Products

Reportable segment
Film Packaging

108-

Impairment
loss

Other businesses

Subtotal
108

Companywide/
elimination

-

Total
-

108

Current fiscal year (from January 1, 2022 to December 31, 2022)(Million yen)
Paper Products

Reportable segment
Film Packaging

323-

Impairment
loss

Other businesses

Subtotal
323-[Information on amortization of goodwill and unamortized balances by reportable segment]
Not applicable- 15 -

Companywide/
elimination

Total
-

323

The Pack Corporation (3950) Financial Report for Fiscal Year 2022

[Information on gain on negative goodwill by reportable segment]
Not applicable
Revenue recognition
A breakdown of the information on revenue derived from contracts with customers is provided under Segment and Other
Information in (5) Notes to Consolidated Financial Statements.
Per Share Information(Yen)
Previous fiscal year
(from January 1, 2021
to December 31, 2021)
3,261.64
148.71148.53

Net assets per share
Basic earnings per share
Diluted earnings per share

1.

The basic assumptions for calculating basic earnings per share and diluted earnings per share are as follows:
Previous fiscal year
(from January 1, 2021
to December 31, 2021)

Basic earnings per share
Profit attributable to owners of parent (million yen)Amounts not available to common shareholders (million yen)
Profit attributable to owners of parent related to common shares(million yen)
Average number of shares outstanding during the period(thousand shares)
Diluted earnings per share
Adjustment to profit attributable to owners of parent(million yen)
Increase in number of common shares (thousand shares)(of which share acquisition rights (thousand shares))
Antidilutive securities excluded from diluted earnings per sharecalculations

2.

Current fiscal year
(from January 1, 2022
to December 31, 2022)
3,436.46
213.55213.38Current fiscal year
(from January 1, 2022
to December 31, 2022)

2,824
-

4,058
-

2,824

4,058

18,99319,005

-

-

22
(22)

15
(15)
-

The basic assumptions for calculating net assets per share are as follows:
Item

Total net assets (million yen)
Deduction on total net assets (million yen)(of which share acquisition rights) (million yen)(of which non-controlling interests) (million yen)
Net assets applicable to common shares (million yen)
Number of common shares used in calculation of net assets per
share (thousand shares)

Material Subsequent Events
Not applicable- 16 -

Previous fiscal year
(from January 1, 2021
to December 31, 2021)
62,03277(63)(13)
61,955Current fiscal year
(from January 1, 2022
to December 31, 2022)
65,37146(46)(-)
65,32418,99519,009