Business Results for the Year Ended December 31, 2023
[Japan GAAP] (Consolidated)
February 9, 2024

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, 2024
Expected starting date of dividend payment:
March 29, 2024
Expected starting date of filing of annual securities report:
March 28, 2024
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, 2023
(January 1, 2023 through December 31, 2023)(1)

Consolidated operational results(% change from the previous corresponding period)
Profit attributable toowners of parent% Million yen%
Million yen%
Million yen
%
9.7
7,743
29.7
8,063
26.9
5,652
39.3
11.8
5,972
44.1
6,353
43.6
4,058
43.7
Year ended December 31, 2023: 7,059 million yen (up 61.8%)
Year ended December 31, 2022: 4,362 million yen (up 31.2%)

Net sales

Operating profit

Million yen

Year ended December 31, 2023
Year ended December 31, 2022
(Note) Comprehensive income

Year ended December 31, 2023
Year ended December 31, 2022

97,71489,060

Basic earnings
per shareYen
297.07213.55(Reference) Investment earnings/loss on equity-method(2)

Diluted earnings
per shareYen
296.86213.38Return on equity
%
8.3
6.4

Ratio of ordinary
profit to total assets
%
8.3
7.0

Ratio of operating
profit to net sales
%
7.9
6.7

Year ended December 31, 2023: - million yen
Year ended December 31, 2022: - million yen

Consolidated financial position
Total assets

Year ended December 31, 2023
Year ended December 31, 2022
(Reference) Owner’s equity(3)

Ordinary profit

Capital adequacy
ratio

Net assets

Million yen

Million yen

98,847
94,365

71,15665,371

Net assets per share

%
71.9
69.2

Yen
3,736.44
3,436.46

As of December 31, 2023: 71,111 million yen
As of December 31, 2022: 65,324 million yen

Consolidated cash flows
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

4,443
5,380

(3,962)(3,762)(1,407)(1,124)

17,812
18,653

Year ended December 31, 2023
Year ended December 31, 2022

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

Year ended December 31, 2022
Year ended December 31, 2023
Year ending December 31, 2024
(forecast)Year-end

Total

Yen
–
–

Yen
30.00
35.00

Yen
–
–

Yen
35.00
55.00

Yen
65.00
90.00

–

52.00

–

66.00

118.00

Ratio of total
Dividend
dividend to net
payout ratio
assets(Consolidated)(Consolidated)
Million yen
%
%
1,235
30.4
1.9
1,712
30.3
2.5
Total
dividends(Total)35.1

3. Forecast of consolidated results for the year ending December 31, 2024
(January 1, 2024 through December 31, 2024)(% change from the previous corresponding period)
Net salesFirst half (accumulated)
Full year

Million yen %46,300 3.2
101,000 3.4

Basic
Profit attributableearnings per
to owners of parent
share% Million yen
%
Yen
4.8
2,800 31.2
147.124.2
6,400 13.2
336.27

Operating profit

Ordinary profit

Million yen
3,100
8,100

Million yen
3,300
8,400

%
4.1
4.6

*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: 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(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, 2023:

2)

As of December 31, 2022:

19,900,000 shares

868,136 shares

As of December 31, 2022:

890,661 shares

19,027,232 shares

As of December 31, 2022:

19,005,422 shares

Number of treasury shares at the end of fiscal year
As of December 31, 2023:

3)

19,900,000 shares

Average number of shares
As of December 31, 2023:* 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
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 2023

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
17

- 1 -

The Pack Corporation (3950) Financial Report for Fiscal Year 2023

1. Overview of Operational Results(1)

Operational Results

During the consolidated fiscal year under review, with COVID-19 downgraded to a Class 5 infectious disease and COVID
restrictions lifted, Japan’s economy saw growing demand for in-person dining and accommodations as a result of more
people going out. The recovering trend in manufacturing also continued, and the economy shows a gentle recovering trend
driven by factors including a recovery in inbound tourism demand and wage hikes. Nevertheless, factors including thelingering effects of high oil prices and exchange rate fluctuations spurred inflation in daily commodities and materials, andthe overall outlook remains uncertain.
Spending on services such as transportation, healthcare, and entertainment is rising in the United States, where employment
conditions are favorable and real wages are rising. At the same time, monetary tightening continues as an effort to control
inflation, and concerns about a potential downturn in the economy persist.
China’s economy recovered rapidly at the start of the year due to the lifting of the nation’s zero-COVID policy, but thenslowed toward the year end due to factors such as a significant drop in investment in real estate development, centered onresidential properties, and a slowdown in exports.
Against such a backdrop, The Pack Group is working as a team to improve business performance through means including
efforts to develop new markets, aggressive capital investments, and improved quality control under the Medium-Term
Management Plan’s slogan, “Evolution—Start of purpose-based management and Sustainable Management.”
In the consolidated fiscal year under review, net sales grew 9.7% year on year to ¥97,714 million; operating profit grew
29.7% to ¥7,743 million; ordinary profit grew 26.9% to ¥8,063 million; and profit attributable to owners of parent grew
39.3% to ¥5,652 million.
The business performance for each segment is given below.
(Paper Products)
The paper products segment accounted for 71.0% of Group consolidated sales during the fiscal year under review.
Sales of paper bags, which accounted for 30.3% of consolidated sales, rose by 13.0% to 29,653 million yen, buoyed bycontinuing recovery in domestic consumer spending and tourism demand in a year entirely free of COVID restrictions.
Sales of folding paper cartons, which accounted for 25.6% of consolidated sales, grew by 12.2% to 25,000 million yen. Salesof cartons for takeout/delivery food products and sales of cartons mainly for food products to the souvenirs sector remained
strong.
Sales of corrugated boxes, which accounted for 12.7% of consolidated sales, grew by 1.7% to 12,419 million yen due tocontinuing strong sales to the manufacturing and e-commerce sectors.
Printing sales, which accounted for 2.4% of consolidated sales, grew 6.4% to 2,325 million, driven by strong sales at Keihin
Tokushu Printing Corp. and NIKKO PRINT CORPORATION.
Overall, sales in this segment rose 10.3% to 69,399 million yen. Operating profit rose by 28.6% to 6,858 million yen.
(Film Packaging)
The film packaging segment accounted for 14.1% of Group consolidated sales during the fiscal year under review. Segment
sales were up 15.1% to 13,798 million yen: sales of disposable diaper products and flexible film packaging for food products
remained strong, while sales to the e-commerce and specialty retail store segments were steady. Operating profit increasedby 46.7% to 856 million yen.
(Other Businesses)
Other businesses accounted for 14.9% of Group consolidated sales in the fiscal year under review. Despite lower sales related
to COVID-19 vaccinations, sales in this segment grew by 2.7% to 14,516 million yen thanks to sales of sewn bags andnonwoven bags to specialty retail stores. Operating profit grew by 19.7% to 1,267 million yen.

- 2 -The Pack Corporation (3950) Financial Report for Fiscal Year 2023

(2)

Financial Position

Assets totaled 98,847 million yen at the end of 2023, up 4,481 million yen from the end of 2022. Major factors included
increases of 2,022 million yen in buildings and structures, net; 2,284 million yen in land; 1,635 million yen in intangible
assets; 1,381 million yen in investment securities; and a decrease of 4,400 million yen in securities.
Liabilities fell by 1,303 million yen to 27,691 million yen. Major factors were an increase of 575 million yen in electronicallyrecorded obligations-operating and a decrease of 1,951 million yen in retirement benefit liability.
Net assets grew by 5,785 million yen to 71,156 million yen. Key factors were increases of 4,321 million yen in retained
earnings and 1,026 million yen in valuation difference on available-for-sale securities.
(3)

Cash FlowsThe balance of cash and cash equivalents at the end of 2023 was down 4.5%, or 840 million yen, from the end of 2022, to
17,812 million yen.
<Cash flows from operating activities>
Operating activities provided net cash of 4,443 million yen in the consolidated fiscal year under review (down 17.4% from5,380 million yen in 2022). The principal factors were profit before income taxes of 7,941 million yen, depreciation of
2,082 million yen, contribution to the employee retirement benefits trust of 1,900 million yen, and payment of 2,244 million
yen in income taxes.
<Cash flows from investing activities>
Investing activities during the consolidated fiscal year under review used net cash of 3,962 million yen (vs. 3,762 million
yen in 2022). The principal factors were outlays of 9,000 million yen for the purchase of securities, 5,581 million yen forpurchasing property, plant, and equipment, and 1,702 million yen for purchasing intangible assets. Proceeds from sales of
securities were 12,500 million yen.
<Cash flows from financing activities>
Due mainly to 1,334 million yen in cash dividends paid, financing activities used net cash of 1,407 million yen (vs.
1,124 million yen in 2022).
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,
2019
66.0

December 31,
2020
71.4

December 31,
2021
70.9

December 31,
2022
69.2

December 31,
2023
71.9

84.7

64.3

58.6

48.6

65.2

0.0

0.1

0.0

0.0

0.0

2,257.9

2,572.9

5,405.8

2,935.1

4,273.4

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.
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.

- 3 -The Pack Corporation (3950) Financial Report for Fiscal Year 2023

(4)

Outlook

The Japanese economy is expected to continue its gentle recovery driven by domestic demand. Nevertheless, the future
outlook remains uncertain due to factors such as the risk of economic downturn overseas, chiefly in China, financial andcapital market fluctuations, inflationary pressures, an increasingly severe labor shortage, and increasing geopolitical risks in
Ukraine and the Middle East.
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 2023

3. Consolidated Financial Statement and Notes(1)

Consolidated Balance Sheet
Previous fiscal year
(As of December 31, 2022)(Million yen)
Current fiscal year
(As of December 31, 2023)

16,163

16,322

Notes and accounts receivable-trade

23,886

24,654

Securities

12,5008,100

AssetsCurrent assets
Cash and deposits

Merchandise and finished goods

6,015

7,038

Work in process

1,032

1,058

Raw materials and supplies

1,108

981

Other

792

936

Allowance for doubtful accounts

(14)

(11)

61,48459,080Total current assets
Non-current assets
Property, plant, and equipment
Buildings and structures, net

6,132

8,154

Machinery, equipment, and vehicles, net

5,641

6,443

348

347

Land

8,539

10,823

Construction in progress

3,068

1,632

Total property, plant and equipment

23,72927,401

1,044

2,679

6,746

8,127

Tools, furniture and fixtures, net

Intangible assets
Investments and other assets
Investment securities
Retirement benefit asset

–

385

421

106

Other

992

1,116

Allowance for doubtful accounts

(53)

(51)

Total investments and other assets

8,106

9,685

Deferred tax assets

Total non-current assets
Total assets- 5 -32,881

39,766

94,36598,847

The Pack Corporation (3950) Financial Report for Fiscal Year 2023

Previous fiscal year
(As of December 31, 2022)(Million yen)
Current fiscal year
(As of December 31, 2023)

Notes and accounts payable-trade

14,37013,890Electronically recorded obligations-operating

6,689

7,264

Current portion of long-term loans payable

25

25

Income taxes payable

1,349

1,397

Provision for bonuses

291

322

Liabilities
Current liabilities

Provision for bonuses for directors (and other officers)

45

52

Other

3,283

3,652

Total current liabilities

26,05426,605

Non-current liabilities
Long-term loans payable

34

9Retirement benefit liability

2,294

343

Deferred tax liabilities

431

664

Other

178

67

2,939

1,085

28,994

27,691

Capital stock

2,553

2,553

Capital surplus

3,166

3,156

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Retained earnings

60,65464,975

Treasury shares(2,661)(2,593)

Total shareholders’ equity

63,71368,092

1,391

2,417

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

(3)

(2)

Foreign currency translation adjustment

89

235

Remeasurements of defined benefit plans

134

369

1,611

3,018

Total accumulated other comprehensive income
Share acquisition rights
Total net assets
Total liabilities and net assets

- 6 -

46

45

65,371

71,156

94,36598,847

The Pack Corporation (3950) Financial Report for Fiscal Year 2023

(2)

Consolidated Statement of Income and Consolidated Statement of Comprehensive Income

Consolidated Statement of Income(Million yen)
Current fiscal year
(from January 1, 2023
to December 31, 2023)

Previous fiscal year
(from January 1, 2022
to December 31, 2022)
Net sales

89,06097,714

Cost of sales

67,382

72,949Gross profit

21,677

24,765

Selling, general and administrative expenses

15,70517,021

Operating profit

5,972

7,743

Interest income

128

150

Dividend income

136

145

Rent income

46

39

Non-operating income

Compensation income

65

–

Other

51

31

Total non-operating income

428

367

Non-operating expenses
Interest expenses

1

1

Cost of lease revenue

20

5Compensation for damages

9–

Loss on investments in partnership–

8

Foreign exchange losses

8

30

Other

6

3

Total non-operating expenses

47

48

6,353

8,063

Gain on sales of investment securities

66

0Gain on sales of non-current assets

10State subsidy–

49

Total extraordinary income

67

49

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on sales on non-current assets

0–Loss on retirement of non-current assets

40

122

Loss on valuation of investments securities

65–

Loss on sales of investment securities

65–

Impairment loss

323

–

–

49

Total extraordinary losses

495

171

Profit before income taxes

5,925

7,941

Income taxes-current

1,947

2,276

Loss on reduction of non-current assets

Income taxes-deferred

(72)

12

Total income taxes

1,875

2,288

Profit

4,050

5,652

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

- 7 -

(8)

–

4,058

5,652

The Pack Corporation (3950) Financial Report for Fiscal Year 2023

Consolidated Statement of Comprehensive Income(Million yen)
Current fiscal year
(from January 1, 2023
to December 31, 2023)

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

4,050

5,652

179

1,026

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(4)1Foreign currency translation adjustment

189

145

Remeasurements of defined benefit plans, net of tax

(51)

234

Total other comprehensive income

312

1,407

4,362

7,059

4,370

7,059

(7)

–

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 2023

(3)

Consolidated Statement of Changes in Equity

Previous 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- 9 -The Pack Corporation (3950) Financial Report for Fiscal Year 2023

Current fiscal year (from January 1, 2023 to December 31, 2023)(Million yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

2,553

Retained earnings

3,166

Total shareholders’equityTreasury shares

60,654(2,661)

63,713

Changes in items during period
Dividends of surplus(1,331)(1,331)

Profit attributable to ownersof parent

5,652

5,652

Purchase of treasury shares
Disposal of treasury shares

(9)

(0)

(0)

68

59

Purchase of shares of
consolidated subsidiaries–

Net changes in items otherthan shareholders’ equity–

Total changes in items during
periodBalance at end of current period

–

(9)

4,321

68

4,379

2,553

3,156

64,975(2,593)68,092Remeasurements ofdefined benefit plans

Total accumulated
other comprehensive
income134

1,611

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

Deferred gains orlosses on hedges

1,391

(3)

89

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

1,026

1

145

234

1,407

Total changes in items during
period

1,026

1

145

234

1,407

Balance at end of current period

2,417

(2)

235

369

3,018

Share acquisitionrightsBalance at beginning of current
period46

Non-controllinginterests

Total net assets–

65,371

Changes in items during period
Dividends of surplus(1,331)

Profit attributable to ownersof parent

5,652

Purchase of treasury shares(0)

Disposal of treasury shares

59

Purchase of shares of
consolidated subsidiaries–

Net changes in items otherthan shareholders’ equity(1)

Total changes in items during
period

(1)

–

5,785

Balance at end of current period

45–

71,156

1,405- 10 -

The Pack Corporation (3950) Financial Report for Fiscal Year 2023

(4)

Consolidated Statement of Cash Flows(Million yen)Previous fiscal year
(from January 1, 2022
to December 31, 2022)

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
Decrease (increase) in net defined benefit asset
Contribution to the employee retirement benefits trust
Interest and dividend income
Interest expenses
Loss (gain) on investments in partnership
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Loss on reduction of non-current assets
State subsidy
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
Payments for asset retirement obligations
Purchase of investment securities
Proceeds from sales of investment securities
Payments for leasehold and guarantee deposits
Proceeds from state subsidy
Other, net
Net cash provided by (used in) investment activities
Cash flows from financing activities
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, 2023
to December 31, 2023)

5,925
1,992
323
5
23

7,941
2,082
–
(5)
31

13

7

(213)
–
–
(264)
1
–
(0)
40
–
–
(0)
65
(2,825)(1,704)
3,264
68
6,715
275
(1)
(1,608)
5,380

285
(385)
(1,900)
(296)
1
8
(0)
122
49
(49)
(0)
–
(692)
(914)
66
37
6,390
298
(1)
(2,244)
4,443(10,000)
12,000(3,109)3(433)–(2,357)
204
(39)
–
(29)
(3,762)(9,000)12,500(5,581)0(1,702)
(52)
(36)
1
(212)
49
70
(3,962)(25)(1,043)(55)(1,124)91
585
18,067
18,653(25)(1,334)(48)(1,407)86(840)
18,653
17,812

The Pack Corporation (3950) Financial Report for Fiscal Year 2023

(5)

Notes to Consolidated Financial Statements

Going Concern Assumption
Not applicable
Changes in Accounting Policies
Not applicable
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.

- 12 -

The Pack Corporation (3950) Financial Report for Fiscal Year 2023

3. Information concerning net sales and profit or loss by reportable segment and breakdown information on revenues
Previous fiscal year (from January 1, 2022 to December 31, 2022)(Million yen)
Reportable segment
Adjustment(Note 2)

Amountposted in the
consolidated
financialstatements(Note 3)

26,252–

26,252

22,283–22,283–

12,210–12,210

–

2,186

–

2,186

11,988–

11,988–

11,988–14,13814,138–14,138

11,98874,921

14,13889,060–89,060

–

–

–

–

–

–

–

62,932

11,98874,921

14,13889,060–89,060

–

–

–

–

–

–

–

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 andintangible assets

1,592

480

2,073

122

2,196

1,409

3,605

Other
businesses(Note 1)

Paper
Products

Film
Packaging

Paper bags

26,252–

26,252–

Folding paper cartons

22,283–22,283–

Corrugated boxes

12,210–12,210Printing

2,186

–

2,186

Film packaging–

11,988

Other

–

–

62,932Other revenues
Sales to externalcustomers

Subtotal

Total

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 -1,004 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 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 2023

Current fiscal year (from January 1, 2023 to December 31, 2023)(Million yen)

Adjustment(Note 2)

Amountposted in the
consolidated
financialstatements(Note 3)–29,653

Reportable segment
Paper
Products

Film
Packaging

Other
businesses(Note 1)

Subtotal

Total

Net sales
Paper bags

29,653–29,653–29,653

Folding paper cartons

25,000–25,000–25,000–25,000Corrugated boxes

12,419–12,419–12,419–12,419Printing

2,325

–

2,325

–

2,325

–

2,325

Film packaging–

13,798

13,798–

13,798–

13,798Other–

14,516–––

14,516

14,516

Revenues fromcontracts withcustomers

69,39913,79883,197

14,516

97,714

Other revenues

–

–

–

–

–

–

–

Sales to externalcustomers

69,39913,79883,197

14,516

97,714–

97,714

–

–

–

–

–

–

–

Intersegment sales andtransfers

97,714

Total

69,39913,79883,197

14,516

97,714–

97,714

Segment profit

6,858

856

7,715

1,267

8,983

(1,239)7,743

Segment assets

54,7908,847

63,637

8,023

71,661

27,186

98,847

Deprecation

1,537

364

1,901

142

2,044

38

2,082

Increases in property,
plant and equipment
and intangible assets

6,576

927

7,503

733

8,237

(830)

7,406

Other items

Notes:
1. “Other businesses” includes supplies and other goods.
2. The adjustments are as follows:(1) The -1,239 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 -1,251 million yen. Corporate expenses primarily involve
the parent company’s Administrative Department.
(2) The 27,186 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
10,495 million yen and securities of 8,100 million yen), long-term investments (investment securities of 7,564 million yen),and the parent company’s land of 1,027 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.

- 14 -

The Pack Corporation (3950) Financial Report for Fiscal Year 2023

[Related information]
Previous 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.

Current fiscal year (from January 1, 2023 to December 31, 2023)
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, 2022 to December 31, 2022)(Million yen)
Paper Products

Reportable segment
Film Packaging

323–

Impairment
loss

Other businesses

Subtotal
323–

Current fiscal year (from January 1, 2023 to December 31, 2023)
Not applicable[Information on amortization of goodwill and unamortized balances by reportable segment]
Not applicable[Information on gain on negative goodwill by reportable segment]
Not applicable- 15 -

Companywide/
elimination

Total
–

323

The Pack Corporation (3950) Financial Report for Fiscal Year 2023

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, 2022
to December 31, 2022)
3,436.46
213.55213.38

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, 2022
to December 31, 2022)

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, 2023
to December 31, 2023)
3,736.44
297.07296.86

Current fiscal year
(from January 1, 2023
to December 31, 2023)

4,058
–

5,652
－

4,058

5,652

19,00519,027

–

–

15
(15)

13
(13)
–

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)- 16 -

Previous fiscal year
(from January 1, 2022
to December 31, 2022)
65,37146(46)(–)
65,324Current fiscal year
(from January 1, 2023
to December 31, 2023)
71,15645(45)(–)
71,111

19,00919,031

The Pack Corporation (3950) Financial Report for Fiscal Year 2023

Material Subsequent Events
Purchase of treasury shares
In its meeting held February 9, 2024, the Company Board of Directors resolved to purchase treasury shares as outlined
below, pursuant to Article 156 of the Companies Act, as applied under Article 165, Paragraph 3 of that Act.
1.

Reason for treasury shares purchaseAs part of the capital policies established in the Medium-Term Management Plan, the Company will purchase treasury
shares for purposes including enhancing returns to shareholders and improving capital efficiency.

2.

Details of this purchase(1)

Class of shares to be purchased:

Company common stock(2)

Total number of shares to be purchased:

up to 300,000 shares(1.57% of total shares issued and outstanding[not including treasury shares])(3)

Total price of purchase of shares:

up to 1,000 million yen(4)

Period of purchase:

February 13 – December 31, 2024

(5)

Method of purchase:

Market purchase on the Tokyo Stock Exchange- 17 -