Business Results for the Third Quarter of the Year Ending December 31, 2023
[Japan GAAP] (Consolidated)
November 6, 2023

Company:
Stock code:
Representative:
Contact:

The Pack Corporation

3950
Hideaki Yamashita, President & CEO
Michihisa Fujii, Managing Director, Corporate Division
TEL: +81-6-4967-1221
Expected filing date for quarterly securities report:
November 9, 2023
Expected starting date of dividend payment:
Quarterly supplementary financial documents:
No
Quarterly results briefing:No

Listed on TSE, Prime Market
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, 2023
(January 1, 2023 through September 30, 2023)(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, 2023

67,586

11.7

4,500

37.5

4,727

31.6

3,205

42.4

Third quarter of year ended
December 31, 2022

60,481

10.6

3,273

59.9

3,592

60.0

2,25048.8(Note) Comprehensive income

Third quarter of year ending December 31, 2023:
Third quarter of year ended December 31, 2022:
Quarterly basic
earnings per share

4,379 million yen (65.5%)
2,646 million yen (23.7%)
Quarterly diluted
earnings per share

Yen

Yen

Third quarter of year ending December 31, 2023

168.46168.34

Third quarter of year ended December 31, 2022

118.43118.33(2)

Consolidated financial position
Total assets

Net assets

Capital adequacy ratio

Million yen

Million yen%

Third quarter of year ending December 31, 2023

94,107

68,476

72.7

Year ended December 31, 2022

94,36565,371

69.2(Reference) Owner’s equity

Third quarter of year ending December 31, 2023:
Year ended December 31, 2022:

68,431 million yen
65,324 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, 2022

-

30.00

-35.0065.00

Year ending December 31, 2023

-

35.00

43.00

78.00

Year ending December 31, 2023 (forecast)(Note) Revision from most recently announced dividends forecast: None

Year-endTotal3. Forecast of consolidated results for the year ending December 31, 2023
(January 1, 2023 through December 31, 2023)(Full year %: change from the previous corresponding period)
Net sales
Million yen%

Operating profit

Ordinary profit

Million yen

Million yen%

Full year
97,000 8.9
7,100 18.9(Note) Revision from most recently announced forecast of results: None

BasicProfit attributableearnings perto owners of parent
share% Million yen

7,500 18.1

4,900%

Yen

20.7

257.45*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, 2023
(including treasury shares)

19,900,000 sharesYear ended
December 31, 2022

19,900,000 shares2)

Number of treasury shares at theend of fiscal year

3Q, year ending
December 31, 2023

868,001 sharesYear ended
December 31, 2022

890,661 shares

3)

Average number of shares(quarterly cumulative)

3Q, year ending
December 31, 2023

19,025,837 shares

3Q, year ended
December 31, 2022

19,004,243 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 Fiscal Year 2023

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 IncomeNotes to Quarterly Consolidated Financial Statements(Going Concern Assumption)(Significant Changes in Shareholders’ Equity)

446888- 1 -The Pack Corporation (3950) Financial Report for Fiscal Year 2023

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, Japan’s economy moved into
the post-COVID era owing to COVID being downgraded to a Category 5 infection, and demand for face-to-face service
industries such as eating out and lodging increased. In addition, the trend toward recovery in the manufacturing industry hascontinued, while the economy has been on a gradual recovery trend with the recovery on inbound tourism and associateddemand and wage rises. Stay-at-home demand saturated, while the prolonged impact of soaring crude oil prices and exchange
rate fluctuations led to increases in prices of daily necessities and materials, leaving future conditions remaining uncertain.
In the United States, the employment environment remains favorable, real wages are rising, and the consumption of services
such as transportation, healthcare, and entertainment is growing. However, monetary tightening aimed at curbing inflation
continues, raising concerns about an economic recession.
In China, exports increased at the beginning of the year as the Zero COVID policy was lifted. However, a decline in theinvestment in real estate development, including housing, and a slump in exports may slow the Chinese economy.
Within this context, the Group has adopted “Evolution—Start of purpose-based management and Sustainable Management”
as the slogan for our Medium-Term Management Plan, which aims to achieve consolidated net sales of 107,000 million yenand operating income of 7,000 million yen for the fiscal year ending December 31, 2025. Toward this goal, group companies
worked collectively to increase earnings by venturing into new markets, making substantial capital expenditures, andimproving quality management.
Due to these efforts, during the cumulative period through the third quarter of the consolidated fiscal year under review, net
sales grew by 11.7% year on year to 67,586 million yen ; operating profit rose 37.5% year on year to 4,500 million yen;ordinary profit grew 31.6% year on year to 4,727 million yen; and profit attributable to owners of parent improved 42.4%
year on year to 3,205 million yen.
The business result for each segment is reviewed below.
(Paper products)
The paper products segment accounted for 70.7% of consolidated sales during the period under review. Sales of paper bags,
which accounted for 29.1% of consolidated sales, rose alongside growing domestic consumer spending and continued
recovery in tourism demand, with net sales growing 14.5% year on year to 19,678 million yen.
Sales of folding paper cartons, which accounted for 25.5% of consolidated sales, grew 15.2% year on year to 17,239 million
yen. This was due to strong sales of cartons for takeout/delivery food products and strong performance in the market forsouvenirs, mainly food.
Sales of corrugated boxes, which accounted for 13.6% of consolidated sales, grew 3.1% year on year to 9,184 million yen
as sales to manufactures and package sales to the e-commerce market remained at the same level as the previous year.
Printing sales, which accounted for 2.5% of consolidated sales, rose 7.5% year on year to 1,693 million yen based on firmsales at Keihin Tokushu Printing Corp. and NIKKO PRINT CORPORATION.
Overall, sales in this segment grew 12.1% year on year to 47,796 million yen. Operating profit rose 37.3% year on year to4,206 million yen.
(Film Packaging)
In the film packaging segment, which accounted for 14.7% of consolidated sales during the period under review, net salesrose 22.3% year on year to 9,926 million yen. This was due to continued strong sales of disposable diaper products andflexible film packaging for food products, as well as strong sales to mail order enterprises and specialty stores, due mainly
to recovery in consumer spending and inbound tourism consumption in association with an increase in the number of foreign
visitors to Japan. Operating profit grew by 44.0% year on year to 456 million yen.

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

(Other Businesses)
Other businesses in the period under review accounted for 14.6% of consolidated sales. While COVID-19 vaccine-related
sales declined, sales of sewn products and non-woven bags to specialty stores were firm. Net sales grew by 1.5% year on
year to 9,864 million yen. Operating profit rose 18.2% year on year to 741 million yen.
(2)

Description of Financial Position

Assets totaled 94,107 million yen at the end of the third quarter of the consolidated fiscal year under review, down
258 million yen from the end of the previous consolidated fiscal year. Major factors included growth of 2,050 million yen
in buildings and structures, 1,909 million yen in land, 1,528 million yen in intangible assets, 1,377 million yen inmerchandise and finished goods, and declines of 5,219 million yen in notes and accounts receivable-trade and 2,900 million
yen in securities.
Liabilities totaled 25,630 million yen at the end of the third quarter of consolidated fiscal year under review, down
3,363 million yen from the end of the previous consolidated fiscal year. The primary factors were declines of 2,260 million
yen in notes and accounts payable-trade and 560 million yen in income taxes payable.
Net assets totaled 68,476 million yen at the end of the third quarter of consolidated fiscal year under review, up 3,105 million
yen from the end of the previous consolidated fiscal year. Key factors included increases of 1,873 million yen in retained
earnings and 897 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 announcement dated August 7, 2023.

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

2. Quarterly Consolidated Financial Statements and Notes(1)

Quarterly Consolidated Balance Sheet(Million yen)Previous fiscal year
(as of December 31, 2022)

Third quarter of current fiscal year
(as of September 30, 2023)

AssetsCurrent assets
Cash and deposits

16,163

16,496

Notes and accounts receivable-trade

23,886

18,667

Securities

12,5009,600

Merchandise and finished goods

6,015

7,392

Work in process

1,032

1,230

Raw materials and supplies

1,108

1,016

Other792

1,106

Allowance for doubtful accounts

(14)

(17)

61,48455,492

Buildings and structures, net

6,132

8,183

Machinery, equipment, and vehicles, net5,641

6,440

348

352

Land

8,539

10,448Construction in progress

3,068

1,412

Total property, plant, and equipment

23,72926,837

1,044

2,572

Investment securities

6,746

7,934

Deferred tax assets

421

202

Other

992

1,121

Allowance for doubtful accounts

(53)

(54)

Total investments and other assets

8,106

9,204

32,881

38,614

94,365

94,107

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

Tools, furniture, and fixtures, net

Intangible assets
Investments and other assets

Total non-current assets
Total assets- 4 -The Pack Corporation (3950) Financial Report for Fiscal Year 2023

(Million yen)Previous fiscal year
(as of December 31, 2022)

Third quarter of current fiscal year
(as of September 30, 2023)

Liabilities
Current liabilities
Notes and accounts payable-trade

14,37012,110Electronically recorded obligations-operating

6,689

6,368

Current portion of long-term loans payable

25

25

Income taxes payable

1,349

788

Provision for bonuses

291

842

Provision for bonuses for directors (and other officers)

45

32

Other3,283

2,670

Total current liabilities

26,054

22,838Long-term loans payable

34

15

Deferred tax liabilities

431

465

2,294

2,231

178

79

2,939

2,792

28,99425,630Capital stock

2,553

2,553

Capital surplus

3,166

3,156

Retained earnings

60,65462,528Treasury shares(2,661)(2,592)

Total shareholders’ equity

63,71365,645

1,391

2,288

Deferred gains or losses on hedges(3)6Foreign currency translation adjustment

89

362

Remeasurements of defined benefit plans

134

128

1,611

2,785

4645

65,371

68,476

94,365

94,107

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

Total accumulated other comprehensive income
Share acquisition rights
Total net assets
Total liabilities and net assets- 5 -The Pack Corporation (3950) Financial Report for Fiscal Year 2023

(2)

Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income

Quarterly Consolidated Statement of Income
Cumulative period through third quarter

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Freightage and packing expenses
Salaries and allowances
Directors’ compensation
Provision of allowance for doubtful accounts
Provision for bonuses
Provision for directors’ bonuses
Retirement benefit expenses
Depreciation
Rent expenses
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rent income
Compensation income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Cost of lease revenue
Loss on investments in investment partnerships
Foreign exchange loss
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities
Gain on sales of non-current assets
Government subsidies
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
Loss on sales of investment securities
Impairment loss
Loss on reduction of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

Cumulative period through third
quarter of previous fiscal year
(from January 1, 2022 toSeptember 30, 2022)
60,48146,015
14,465(Million yen)
Cumulative period through third
quarter of current fiscal year
(from January 1, 2023 to
September 30, 2023)
67,58650,67816,907

2,839
2,826
315
8364
20
187
284
2,055
2,289
11,192
3,273

2,943
3,131
399
9
442
29
179
363
2,247
2,659
12,407
4,500

9376
3665
21
44336

117
76
30
23247

168173,592

23833
20
4,727

0
1
10049
49

021
2364
188
298
3,296
1,133(86)1,047
2,248(1)
2,250

4249
92
4,684
1,607(127)
1,479
3,205
3,205

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

Quarterly Consolidated Statement of Comprehensive Income
Cumulative period through third quarter
Cumulative period through third
quarter of previous fiscal year
(from January 1, 2022
to September 30, 2022)(Million yen)
Cumulative period through third
quarter of current fiscal year
(from January 1, 2023to September 30, 2023)

2,248

3,205

Valuation difference on available-for-sale securities

6897

Deferred gains or losses on hedges

1510

Foreign currency translation adjustment

386

272

Remeasurements of defined benefit plans, net of tax

(11)

(6)

Total other comprehensive income

397

1,173

2,646

4,379

Comprehensive income attributable to owners of parent

2,647

4,379

Comprehensive income attributable to non-controllinginterests(0)-Profit
Other comprehensive income

Comprehensive income(Comprehensive income attributable to)- 7 -The Pack Corporation (3950) Financial Report for Fiscal Year 2023

(3)

Notes to Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable(Significant Changes in Shareholders’ Equity)
Not applicable- 8 -