Business Results for the Third Quarter of the Year Ending December 31, 2021
[Japan GAAP] (Consolidated)
Company:
Stock code:
Representative:
Contact:

November 5, 2021

The Pack Corporation

3950
Mitsuo Inada, President & CEO
Michihisa Fujii, Managing Director, Corporate Division
TEL: +81-6-4967-1221
Expected filing date for quarterly securities report:
November 9, 2021
Expected starting date of dividend payment:–
Quarterly supplementary financial documents:
None
Quarterly results briefing:
None

Listed on TSE, First Section
URL: https://www.thepack.co.jp(Rounded down to million yen)
1. Consolidated business results for the third quarter of the year ending December 31, 2021
(January 1, 2021 through September 30, 2021)(1)

Consolidated operational results (cumulative)(% change from same quarter of previous year)

Net sales

Operating profit

Profit attributable toowners of parent

Ordinary profit

Million yen%

Million yen%

Million yen%

Million yen%

Third quarter of year ending
December 31, 2021

55,061

1.7

2,047

29.3

2,245

25.1

1,512

35.8

Third quarter of year ended
December 31, 2020

54,165(18.7)

1,582(60.8)

1,795(57.8)

1,113(57.6)(Note) Comprehensive income

Third quarter of year ending December 31, 2021: 2,138 million yen (-%)
Third quarter of year ended December 31, 2020: 96 million yen (-96.3%)
Quarterly basic
earnings per share

Quarterly diluted
earnings per share

Yen

Yen

Third quarter of year ending December 31, 2021

79.62

79.52

Third quarter of year ended December 31, 2020

58.65

58.57

(2)

Consolidated financial position
Total assets

Net assets

Capital adequacy ratio

Million yen

Million yen%

Third quarter of year ending December 31, 2021

81,89760,845

74.2

Year ended December 31, 2020

83,55659,73971.4(Reference) Owner’s equity

Third quarter of year ending December 31, 2021: 60,760 million yen
Year ended December 31, 2020:59,651 million yen

2. Dividends
Dividend per share
End of 1Q

End of 2Q

End of 3Q

Yen

Yen

Yen

Yen

Yen

Year ended December 31, 2020

–30.00

–

30.00

60.00

Year ending December 31, 2021–

25.00

–
25.00

50.00

Year ending December 31, 2021 (forecast)(Note) Revision from most recently announced dividends forecast: None

Year-endTotal3. Forecast of consolidated results for the year ending December 31, 2021
(January 1, 2021 through December 31, 2021)(% change from the previous year)
Net sales
Million yen%

Operating profit

Ordinary profit

Million yen

Million yen%

Full year
81,000 3.3
3,800 16.0(Note) Revision from most recently announced forecast of results: None

BasicProfit attributableearnings perto owners of parent
share% Million yen

4,000 10.9

2,700%

Yen

12.9

142.17*Notes(1)

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

(2)

Application of special account processing in preparation of quarterly financial statements: None

(3)

Changes in accounting policies, accounting estimates, and retrospective restatement
1) Changes in accounting policies based on revisions of the accounting standard: None
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(4)

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

Number of issued and outstanding
3Q, year ending
shares at the end of fiscal year
December 31, 2021
(including treasury shares)2)

Number of treasury shares at theend of fiscal year

3)

Average number of shares(quarterly cumulative)

19,900,000 sharesYear ended
December 31, 2020

19,900,000 shares

3Q, year ending
December 31, 2021

904,897 sharesYear ended
December 31, 2020

909,347 shares

3Q, year ending
December 31, 2021

18,993,368 shares

3Q, year ended
December 31, 2020

18,984,873 shares* The quarterly financial summary is not subject to audits by certified public accountants or auditing firms.
* Explanation regarding appropriate use of business forecasts and other special instructions
Forward-looking statements regarding future performance are based on assumptions regarding various factors affecting
business performance and information available to the Company’s management as of the date the materials wereprepared. Actual results may differ significantly from forecasts.
Also see “Explanation Regarding Consolidated Business Forecasts and Other Forward-Looking Statements” on p. 3 ofthe Attachments concerning forward-looking statements.

The Pack Corporation (3950) Financial Report for the Third Quarter of 2021

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

Qualitative Summary of Business Results for the Period Under Review
Description of Operational Results
Description of Financial Position
Explanation Regarding Consolidated Business Forecasts and Other Forward-Looking Statements

2233

2.
(1)
(2)
(3)

Quarterly Consolidated Financial Statements and Notes
Quarterly Consolidated Balance Sheet
Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Notes to Quarterly Consolidated Financial Statements(Going Concern Assumption)(Significant Changes in Shareholders’ Equity)

446888-1-The Pack Corporation (3950) Financial Report for the Third Quarter of 2021

1. Qualitative Summary of Business Results for the Period Under Review(1)

Description of Operational Results

In the cumulative period through the third quarter of the consolidated fiscal year under review, the Japanese economy saw a
gradual and sustained recovery in consumer spending despite the emergence of various mutant strains of COVID-19, but thefifth wave of the pandemic significantly constrained activity, leading to a drop in personal consumption.
Business activity continues to strengthen in the United States. Progress with COVID-19 vaccinations boosted both
opportunities for consumers to venture out and a recovery in personal consumption, centered on service industries. China’s
economy maintained a steady overall recovery, founded on the country’s success in containing COVID-19; however, future
prospects remain clouded by factors such as policies intended to rectify disparities and stronger regulation of electricity.
While the COVID-19 pandemic continued to affect business performance, under the “Refreshed and Moving Forward”
slogan, group companies worked collectively to increase earnings by venturing into new markets, making substantial capital
expenditures, and improving quality management.
During the quarter under review, net sales grew 1.7% year on year to ¥55,061 million; operating profit increased 29.3% to¥2,047 million; ordinary profit rose 25.1% to ¥2,245 million; and profit attributable to owners of parent rose 35.8% to ¥1,512
million.
The business performance for each segment is given below.
(Paper Products)
The paper products segment accounted for 68.8% of consolidated sales in the third quarter. Sales of paper bags, which
accounted for 26.2% of consolidated sales, declined due to slowing consumer spending attributable to the COVID-19
pandemic and the decision by certain customers to begin charging fees for paper bags. However, the overseas subsidiaries
The Pack (Shanghai) Corporation and The Pack America Corp. recorded strong performance. Paper bag net sales grew 0.7%
year on year to ¥14,414 million.
Sales of folding paper cartons, which accounted for 24.1% of consolidated sales, grew 16.5% to ¥13,282 million. Sales ofcartons for takeout/delivery food products remained firm.
Sales of corrugated boxes, which accounted for 15.7% of consolidated sales, grew 13.3% to ¥8,641 million, driven by solidsales to manufacturers and the e-commerce sector.
Printing sales, which accounted for 2.8% of consolidated sales, rose 4.2% to ¥1,535 million. Both Keihin Tokushu Printing
Corp. and NIKKO PRINT CORPORATION recorded strong sales.
Overall, sales in this segment rose 8.8% to ¥37,874 million. Operating profit grew 27.6% to ¥2,113 million.
(Film Packaging)
The film packaging segment accounted for 14.4% of consolidated sales in the period under review. Segment sales fell 20.5%
to ¥7,959 million due to declining sales of disposable diaper products, lower sales to specialty retail stores in Japan due tothe spread of COVID-19, and the impact of a mandatory charge for plastic shopping bags that went into effect on July 1 lastyear. Operating profit fell 24.3% to ¥229 million.
(Other Businesses)
Other businesses accounted for 16.8% of consolidated sales in the period under review. Sales in this segment fell 1.2% to¥9,228 million due to lower sales at NISHINIHON PRINTING Co., Ltd. and The Pack America Corp., despite signs ofrecovery in sales of miscellaneous supplies to large retailers and strong sales by Kannaru Printing Co., Ltd. Operating profit
for Other Businesses rose 21.0% to ¥500 million, due in part to improvement in distribution costs.

-2-The Pack Corporation (3950) Financial Report for the Third Quarter of 2021

(2)

Description of Financial Position

Assets totaled ¥81,897 million at the end of the period under review, down ¥1,658 million from the end of 2020.
Major factors included increases of ¥3,839 million in cash and deposits and ¥755 million in investment securities, alongwith declines of ¥6,424 million in notes and accounts receivable-trade and ¥899 million in securities.
Liabilities fell ¥2,764 million to ¥21,052 million. The primary factors were decreases of ¥1,939 million in notes and accounts
payable-trade and ¥514 million in electronically recorded obligations-operating.
Net assets grew ¥1,106 million to ¥60,845 million. The key factors were increases of ¥467 million in retained earnings and¥469 million in valuation difference on available-for-sale securities.
(3)

Explanation Regarding Consolidated Business Forecasts and Other Forward-Looking Statements

Consolidated business forecasts remain unchanged from the information announced February 5, 2021.

-3-

The Pack Corporation (3950) Financial Report for the Third Quarter of 2021

2. Quarterly Consolidated Financial Statements and Notes(1)

Quarterly Consolidated Balance Sheet(Million yen)Previous fiscal year
(As of December 31, 2020)

Third quarter of this fiscal year
(As of September 30, 2021)

AssetsCurrent assets
Cash and deposits

13,234

17,073

Notes and accounts receivable – trade

20,731

14,307

Securities

9,099

8,200

Merchandise and finished goods

4,958

5,300

Work in process

763

886

Raw materials and supplies

830

814

Other

555

680

Allowance for doubtful accounts

(13)

(21)

50,16047,242

Buildings and structures, net

6,284

6,232

Machinery, equipment, and vehicles, net

6,989

6,537

355

347

8,302

8,539

616

1,238

22,54722,894190

577

Investment securities

9,104

9,859

Deferred tax assets

583

463

Other

1,022

908

Allowance for doubtful accounts

(53)

(48)

Total investments and other assets

10,657

11,18233,39534,65583,55681,897

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

Tools, furniture and fixtures, netLand
Construction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets

Total non-current assets
Total assets-4-The Pack Corporation (3950) Financial Report for the Third Quarter of 2021

(Million yen)Previous fiscal year
(As of December 31, 2020)

Third quarter of this fiscal year
(As of September 30, 2021)

Liabilities
Current liabilities
Notes and accounts payable – trade

11,183

9,244

Electronically recorded obligations – operating

5,330

4,815

Current portion of long-term loans payable

3025

Income taxes payable

55

396

Allowance for bonuses

230

660

Allowance for bonuses for directors (and other officers)

18

26

Other

3,506

2,619

Total current liabilities

20,356

17,787Long-term loans payable-66

Deferred tax liabilities

485

453

2,758

2,574

214

169

3,459

3,264

23,816

21,052

Capital stock

2,553

2,553

Capital surplus

3,164

3,164

Retained earnings

55,86056,328Treasury shares(2,717)(2,703)

Total shareholders’ equity

58,861

59,342

987

1,457

00

Foreign currency translation adjustment

(310)

(164)

Remeasurements of defined benefit plans

112

125

Total accumulated other comprehensive income

790

1,418

Share acquisition rights

65

63

Non-controlling interests

22

20

59,73960,84583,55681,897

Non-current liabilities

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

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

Total net assets
Total liabilities and net assets-5-The Pack Corporation (3950) Financial Report for the Third Quarter of 2021

(2)

Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statement of Income
Cumulative period through third quarter
Cumulative period through third
quarter of previous fiscal year
(from January 1, 2020 to
September 30, 2020)(Million yen)
Cumulative period through third
quarter of this fiscal year
(from January 1, 2021 toSeptember 30, 2021)

Net sales
Cost of sales

54,16541,65255,061
42,251Gross profit

12,513

12,810

2,782
2,769
328
15
309

2,663
2,782
318
4
340

28

24240
259
2,097
2,099

207
282
1,943
2,195

10,93010,763

1,582

2,047

Non-operating income
Interest income
Dividend income
Rent income
Foreign exchange gains
Other
Total non-operating income

75
66
40
28
26
238

7960
40
1425
220

Non-operating expenses
Interest expenses
Cost of lease revenue
Sales discounts
Other
Total non-operating expenses

1731326

162
1022

1,795

2,245

325

5528

1103155

5-Selling, general and administrative expenses
Freightage and packing expenses
Salaries and allowances
Director compensation
Provision of allowance for doubtful accounts
Provision of allowance for bonuses
Provision of allowance for bonuses for directors(and other officers)
Retirement benefit expenses
Depreciation
Rent expenses
OtherTotal selling, general and administrative expenses
Operating profit

Ordinary profit
Extraordinary income
Gain on sales of investment securities
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on sales on non-current assets
Loss on retirement of non-current assets
Loss on valuation of investment securities
Total extraordinary losses

88

5Profit before income taxes

1,734

2,251

556
67862
(119)

Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent-6-624

742

1,110

1,509(2)

(3)

1,113

1,512

The Pack Corporation (3950) Financial Report for the Third Quarter of 2021

Quarterly Consolidated Statement of Comprehensive Income
Cumulative period through third quarter
Cumulative period through third
quarter of previous fiscal year
(from January 1, 2020 to
September 30, 2020)(Million yen)
Cumulative period through third
quarter of this fiscal year
(from January 1, 2021 toSeptember 30, 2021)

1,110

1,509

(620)

469

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(0)0Foreign currency translation adjustment

(32)

147

Remeasurements of defined benefit plans, net of tax(361)

12(1,013)

62996

2,138

Comprehensive income attributable to owners of parent

100

2,140

Comprehensive income attributable to non-controllinginterests

(3)

(1)

Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)-7-

The Pack Corporation (3950) Financial Report for the Third Quarter of 2021

(3)

Notes to Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Significant Changes in Shareholders’ Equity)
Not applicable.

-8-