Quarterly Report
2023(Second quarter of 72nd term)- 1 -Quarterly Report
1. This document is the print version of the Quarterly Report submitted via
the Electronic Disclosure for Investors’ NETwork (EDINET), pursuant to
Article 27-30-2 of the Financial Instruments and Exchange Act of Japan,
to which a table of contents and pagination have been added.
2. The quarterly review attached to the Quarterly Report submitted via
EDINET and the letter of confirmation submitted alongside the Quarterly
Report are appended to the end of this document.

- 2 -Contents
Page[Cover page] ............................................................................................................................................................ 4
Part 1. Corporate information .................................................................................................................................. 5
1. Corporate overview ...................................................................................................................................... 5
1. Trends in major management indicators ................................................................................................. 5
2. Lines of business..................................................................................................................................... 5
2. Business overview.......................................................................................................................................... 6
1. Business and other risks .......................................................................................................................... 6
2. Management analysis of financial standing, business results, and cash flow ......................................... 6
3. Major business contracts, etc. ................................................................................................................. 8
3. Information on filing company ..................................................................................................................... 9
1. Information on stock, etc. ....................................................................................................................... 9
2. Directors ............................................................................................................................................... 11
4. Financial information ................................................................................................................................. 12
1. Quarterly Consolidated Financial Statements ....................................................................................... 13
2. Other ..................................................................................................................................................... 22
Part 2. Information concerning guarantor of filing company ................................................................................ 23
Independent Auditor’s Report on Quarterly Review
Confirmation Letter- 3 -[Cover page]
Document filed:

Quarterly Report

Legal basis:

Article 24-4-7, Paragraph 1 of the Financial Instruments and Exchange Act

Submitted to:

Director-General, Kinki Local Finance Bureau

Filing date:August 10, 2022

Quarterly accounting period:

Second quarter of 72nd term (April 1 – June 30, 2023)

Company name (Japanese):

ザ・パック株式会社

English name:

THE PACK CORPORATIONName and title of representative:

Hideaki Yamashita, President & CEO

Location of head office:9-3 Higashiobase 2-chome, Higashinari-ku, Osaka, Japan

Telephone no.:+81-6-4967-1221

Name of administrative contact:

Michihisa Fujii, Managing Director, Corporate Division

Nearest point of contact:

9-3 Higashiobase 2-chome, Higashinari-ku, Osaka, Japan

Telephone no.:+81-6-4967-1221

Name of administrative contact:

Michihisa Fujii, Managing Director, Corporate Division

Locations where this document is

THE PACK CORPORATION

available for public inspection:(9-3 Higashiobase 2-chome, Higashinari-ku, Osaka, Japan)
Tokyo Stock Exchange(2-1 Nihonbashi Kabutocho, Chuo-ku, Tokyo, Japan)- 4 -Part 1. Corporate information
1. Corporate overview
1.

Trends in major management indicators
Term

Second quarter ofconsolidated 71st term
(cumulative)

Second quarter ofconsolidated 72nd term
(cumulative)

71st term

Fiscal period

January 1 –June 30, 2022

January 1 –June 30, 2023

January 1, 2022 –December 31, 2022

Net sales(million yen)

39,61744,87889,060Ordinary profit(million yen)

2,298

3,147

6,353

Profit attributable to owners ofparent(million yen)

1,422

2,133

4,058

Comprehensive income (loss)(million yen)

1,744

2,942

4,362

Net assets(million yen)

63,32367,70565,371

Total assets(million yen)

86,56593,831

94,365

Basic earnings per share

(yen)

74.85

112.16213.55

Diluted earnings per share

(yen)

74.78

112.08213.38

Capital adequacy ratio

(%)

73.1

72.1

69.2

Cash flow from (used in)operating activities(million yen)

4,449

5,066

5,380

Cash flow from (used in)investment activities(million yen)

(2,065)(5,413)(3,762)

Cash flow from (used in)financing activities(million yen)

(514)

(703)

(1,124)Ending balance of cash and cash
equivalents(million yen)

20,101

17,71918,653

Term

Second quarter ofconsolidated 71st term
(cumulative)

Second quarter ofconsolidated 72nd term
(cumulative)

Fiscal period

April 1 – June 30, 2022

April 1 – June 30, 2023

37.06

59.52

Basic earnings per share(yen)

Note: Trends in key management indicators for the reporting company are not provided because the Company prepares quarterly
consolidated financial statements.

2.

Lines of businessNo material changes occurred in the lines of business pursued by the Group (i.e., the Company and its affiliates)
during the cumulative period through the second quarter of the consolidated fiscal year under review.
No changes affecting major affiliates emerged.
- 5 -2. Business overview
1.

Business and other risks
During the cumulative period through the second quarter of the consolidated fiscal period under review, no new
business or other risks were incurred. Additionally. no material changes arose with respect to the business andother risks presented in the Securities Repot for the preceding fiscal year.
The business impact of the COVID-19 pandemic will continue to be closely monitored.

2.

Management analysis of financial standing, business results, and cash flow
Forward-looking statements in the text below are based on judgments made as of the end of the quarter of theconsolidated fiscal period under review.
(1) Business performance
In the cumulative period through the second quarter of the consolidated fiscal year under review, Japan’s
economy trended toward recovery, particularly in the industries of food and beverage, leisure, and lodging.
This was due in part to the loosening of restrictions placed on behavior by the COVID-19 pandemic, which inturn boosted inbound tourism and associated demand, as well as other factors, including wage rises against a
backdrop of increasing prices. Nevertheless, various factors leave conditions uncertain, including theprolonged effects of high prices for daily necessities, the soaring cost of energy and materials, andfluctuations in foreign exchange rates.
In the United States, personal consumption remained firm as real wages rose. Employment numbers trended
upward. Due to the continuing tightening of monetary policy intended to control inflation, which remains
high, fears of recession remain. In China, while the economy continues to see recovery in consumption ofservices such as food and beverage and travel following the easing of quarantine restrictions, sluggish realestate and export sectors are weighing on the 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 yen and 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 newmarkets, making substantial capital expenditures, and improving quality management.
Due to these efforts, during the second quarter of the consolidated fiscal year under review, net sales grew by
13.3% to 44,878 million yen; operating profit rose 45.6% to 2,976 million yen; ordinary profit grew 36.9% to
3,147 million yen; and profit attributable to owners of parent improved 50.0% to 2,133 million yen.
The business performance for each segment is reviewed below.
(i)Paper Products
The paper products segment accounted for 70.7% of consolidated sales in the second quarter. Sales of
paper bags, which accounted for 29.0% of consolidated sales, rose alongside recovery in domestic
consumer spending and tourism demand, with net sales growing 15.4% year on year to 12,993 million
yen.
Net sales of folding paper cartons, which accounted for 25.1% of consolidated sales, grew 15.8% year on
year to 11,262 million yen. This was due to recovery in the market for souvenirs driven by tourism
consumption and strong sales of cartons for takeout/delivery food products.
Sales of corrugated boxes, which accounted for 14.1% of consolidated sales, grew 6.7% year on year to
6,343 million yen, driven by strong sales to the manufacturing sector and firm sales to the e-commerce
sector.
- 6 -Printing sales, which accounted for 2.5% of consolidated sales, rose 6.7% to 1,135 million yen based on
firm sales at Keihin Tokushu Printing Corp. and NIKKO PRINT CORPORATION.
Overall, sales in this segment grew 13.3% to 31,734 million yen. Operating profit rose 39.1% to 2,715
million yen.
(ii) Film Packaging
In the film packaging segment, which accounted for 14.8% of consolidated sales during the period underreview, net sales rose 27.4% year on year to 6,654 million yen. This was due to strong sales of disposable
diaper products and flexible film packaging for food products, as well as strong sales in mail order
enterprises as well as specialty stores generated by recovering tourism consumption and demand fromforeign tourists. Operating profit grew by 46.1% year on year to 28.8 million yen.
(iii) Other Businesses
Other businesses in the period under review accounted for 14.5% of consolidated sales. While COVID19 vaccine-related sales declined, sales of sewn products and non-woven bags to specialty stores were
firm. Net sales grew by 1.4% year on year to 6,489 million yen. Operating profit rose 12.5% year on year
to 485 million yen.
(2) Analysis of Financial Position
Assets totaled 93,831 million yen at the end of the quarter under review, down 534 million yen from the endof the previous fiscal year. Major factors included growth of 2,101 million yen in buildings and structures,
1,909 million yen in land, and 1,418 million yen in intangible assets, offset by declines of 5,490 million yen innotes and accounts receivable-trade and 1,900 million yen in securities.
Liabilities fell 2,868 million yen to 26,125 million yen. The primary factors were declines of 2,414 million
yen in notes and accounts payable-trade and 413 million yen in electronically recorded obligations-operating.
Net assets grew by 2,334 million yen to 67,705 million yen. The key factors were increases of 1,468 million
yen in retained earnings and 623 million in valuation difference on available-for-sale securities.
(3) Cash flow
Compared to the cumulative period through the second quarter of the previous consolidated fiscal year, thebalance of cash and cash equivalents in the cumulative period through the second quarter of the consolidated
fiscal year under review fell by 2,381 million yen (11.8%) to 17,719 million yen.
(Cash flow from operating activities)
Cash flow from operating activities in the cumulative period through the second quarter of the consolidated
fiscal year under review stood at 5,066 million yen (vs. cash flow from operating activities of 4,449 million
yen in the cumulative period through the second quarter of the previous consolidated fiscal year). Factors
contributing to this figure include the recording of 3,129 million yen in profit before income taxes, a decrease
5,566 million yen in notes and accounts receivable-trade, and depreciation of 1,014 million yen. These factors
more than offset a decrease of 2,857 million yen in notes and accounts payable-trade and an increase of 738
million yen in inventories.
(Cash flow used in investment activities)
Cash flow used in investment activities in the cumulative period through the second quarter of theconsolidated fiscal year under review stood at 5,413 million yen (vs. cash flow used in investment activities of
2,065 million yen in the cumulative period through the second quarter of the previous consolidated fiscal- 7 -year). This figure reflects various factors, including 6,000 million yen in purchase of securities, 4,351 million
yen in purchase of property, plant, and equipment, 1,465 million yen in purchase of intangible assets, despite
6,500 million yen in proceeds from sales of investment securities.
(Cash flow used in financing activities)
Cash flow used in financing activities in the cumulative period through the second quarter of the consolidated
fiscal year under review stood at 703 million yen (vs. cash flow used in financing activities of 514 million yen
in the cumulative period through the second quarter of the previous consolidated fiscal year). This figurereflects various factors, including cash dividends paid of 664 million yen.
(4) Management policies, management strategies, etc.
No material changes occurred in the Group’s established management policies, management strategies, orother plans during the cumulative period through the second quarter of the consolidated fiscal period underreview.
(5) Major business and financial issues
No material changes arose with regard to major business or financial issues during the cumulative period
through the second quarter of the consolidated fiscal period under review.
(6) Research and development activities
The total research and development costs recorded during the cumulative period through the second quarter ofthe consolidated fiscal period under review amounted to 192 million yen.
(7) Major Facilities
The reconstruction of our head office building, which was in the planning stage at the end of the previous
fiscal year, was completed in the cumulative period through the second quarter.
As a result, buildings and structures increased by 2.35 billion yen.

3.

Major business contracts, etc.
No major business contracts, etc. were concluded and no associated decisions were made during the cumulative
period through the second quarter of the consolidated fiscal period under review.

- 8 -3. Information on filing company
1.

Information on stock, etc.
(1) Total number of shares, etc.
(i)

Total number of shares
Class

Total number of authorized shares

Common stock

77,000,000

Total

77,000,000(ii) Shares issued and outstanding
Name of exchange on

Class

Current number of shares Current number of shares which shares are listed or
financial instruments
issued as of the end ofissued as of the filing
trading industry
the second quarter
date
association with which(June 30, 2023)(August 10, 2023)
shares are registered andauthorized

Details

Commonstock

19,900,000

19,900,000

Tokyo Stock Exchange
Prime Market

One trading unit consistsof 100 shares.

Total

19,900,000

19,900,000--(2) Information on stock acquisition rights, etc.
(i)

Stock option plan details
Not applicable(ii) Information on other stock acquisition rights, etc.
Not applicable(3) Information on exercise of bonds with stock acquisition rights and strike price adjustment terms, etc.
Not applicable(4) Trends in total shares issued and outstanding, capital, etc.

Date

Increase
Balance of total(decrease) in total
shares issued andshares issued andoutstanding
outstanding(thousand shares)(thousand shares)

April 1 –June 30, 2023-

Increase(decrease) in
capital(million yen)

19,900

Balance ofcapital(million yen)

-

- 9 -

2,553

Increase(decrease) in
capital reserve(million yen)

Balance ofcapital reserve(million yen)

-

2,643

(5) Major shareholders
As of June 30, 2023

Name

Address

Shares owned(thousand)

Percentage of total
shares issued andoutstanding(not including treasury
stock)(%)

Morita Kinen Fukushizaidan

1984-40 Nakatomigaoka 2-chome, Nara City,
Nara Prefecture

2,081

10.94

The Master Trust Bank of Japan, Ltd.
(Trust Account)11-3 Hamamatsucho 2-chome, Minato-ku,
Tokyo, Japan

1,571

8.25

245 Summer Street, Boston, Massachusetts
BBH for Fidelity Low-Priced Stock Fund
02210, USA(Principal All Sector Subportfolio)(7-1 Marunouchi 2-chome, Chiyoda-ku,(Standing proxy: MUFG Bank, Ltd.)Tokyo, Japan)

1,275

6.70

The Pack Trading Partners Stock
Ownership Plan

9-3 Higashiobase 2-chome, Higashinari-ku,
Osaka, Japan

1,258

6.61

Custody Bank of Japan, Ltd.
(Trust Account)

8-12 Harumi 1-chome, Chuo-ku, Tokyo, Japan

941

4.94

Custody Bank of Japan, Ltd.
(Trust Account 4)8-12 Harumi 1-chome, Chuo-ku, Tokyo, Japan

876

4.60

Custody Bank of Japan, Ltd.
(re-entrusted to Resona Bank; Hokuetsu
Corporation retirement benefits trust
account)

8-12 Harumi 1-chome, Chuo-ku, Tokyo, Japan

622

3.27

Daio Paper Corporation

60 Mishimakamiyacho 2-chome,
Shikokuchuo, Ehime Prefecture, Japan

573

3.01

MUFG Bank, Ltd.

7-1 Marunouchi 2-chome, Chiyoda-ku,
Tokyo, Japan

494

2.60

Shichijo Paper Trading Co., Ltd.

20-10 Nihonbashi 2-chome, Chuo-ku, Tokyo,
Japan

474

2.49

-

10,168

53.43

Total

Note: In addition to the above, the Company holds 867,000 shares of treasury stock.

- 10 -

(6) Voting rights(i)

Shares issued and outstanding
As of June 30, 2023
Number of shares

Number of voting
rights

Details

Non-voting shares

-

-

-

Shares with restricted voting rights(e.g., treasury shares)

-

-

-

Shares with restricted voting rights(other)

-

-

-

-

-

Category

Shares with full voting rights(e.g., treasury shares)(Treasury shares)
Common stock

867,800

Shares with full voting rights (other)

Common stock

19,024,800

Shares in less than one trading unit

Total shareholder voting rights

-

7,400

-

This refers to shares inlots numbering fewer
than 100 shares (onetrading unit).

19,900,000--

Common stock

Total shares issued and outstanding

190,248-

190,248-

Note: The shares of common stock under “Shares in less than one trading unit” include 17 shares of treasury shares
owned by the Company.

(ii) Treasury shares, etc.
As of June 30, 2023

Name or title ofowner

Address of owner

Number of shares
held in own name

Number of shares
held in othernames

Total number ofshares heldRate of shares
held as apercentage of
total sharesissued andoutstanding (%)(Treasury shares
owned by theCompany)
THE PACKCORPORATION

9-3 Higashiobase
2-chome,Higashinari-ku,
Osaka, Japan

867,800-

867,800

4.36-

867,800-

867,800

4.36

Total

2.

Directors
Not applicable- 11 -

4. Financial information
1.

How quarterly consolidated financial statements are prepared
The Company’s quarterly consolidated financial statements are prepared based on the Ordinance on the
Terminology, Forms, and Preparation Methods of Quarterly Consolidated Financial Statements (Cabinet
Office Ordinance No. 64 of 2007).

2.

Audit certification
Pursuant to the provisions of Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act ofJapan, the Company’s quarterly consolidated financial statements for the second quarter of the consolidated
fiscal period under review (April 1 – June 30, 2023) and the cumulative period through the second quarter ofthe consolidated period under review (January 1 – June 30, 2023) were subjected to a quarterly review by
Ernst & Young ShinNihon LLC.

- 12 -

1.

Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet(Million yen)Previous fiscal year
(as of December 31, 2022)

Second quarter of current
fiscal year
(as of June 30, 2023)

AssetsCurrent assets
Cash and deposits

16,163

16,729Notes and accounts receivable-trade

23,886

18,396

Securities

12,50010,600

Merchandise and finished goods

6,015

6,733

Work in process

1,032

1,214

Raw materials and supplies

1,108

953

Other

792

956

Allowance for doubtful accounts

(14)

(19)

61,48455,565

Buildings and structures, net

6,132

8,233

Machinery, equipment, and vehicles, net

5,641

5,908

348

363

Land

8,539

10,448Construction in progress

3,068

2,057

Total property, plant, and equipment

23,72927,011

1,044

2,462

Investment securities

6,746

7,537

Deferred tax assets

421

171

Other

992

1,133

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

Tools, furnitures, and fixtures, net

Intangible assets
Investments and other assets

Allowance for doubtful accounts

(53)

(50)

Total investments and other assets

8,106

8,792

32,881

38,266

94,36593,831

Total non-current assets
Total assets- 13 -

(Million yen)
Second quarter of current
fiscal year
(as of June 30, 2023)

Previous fiscal year
(as of December 31, 2022)
Liabilities
Current liabilities
Notes and accounts payable-trade

14,37011,956

Electronically recorded obligations-operating

6,689

6,275

Current portion of long-term loans payable

25

25

Income taxes payable

1,349

1,122

Provision for bonuses

291

334

Provision for bonuses for directors (and other officers)

45

21

Other

3,283

3,571

Total current liabilities

26,05423,30634

22

Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities

431

453

2,294

2,251

178

91

2,939

2,818

28,994

26,125

2,553

2,553

Net assets
Shareholders’ equity
Capital stock
Capital surplus

3,166

3,156

Retained earnings

60,654

62,123

Treasury shares(2,661)(2,592)

Total shareholders’ equity

63,71365,240

1,391

2,014

(3)

2

Foreign currency translation adjustment

89

273

Remeasurements of defined benefit plans

134

130

1,611

2,420

46

45

65,371

67,70594,36593,831

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

Total accumulated other comprehensive income
Share acquisition rights
Total net assets
Total liabilities and net assets- 14 -

(2) Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statement of Income
Cumulative period through second quarter(Million yen)

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 partnerships
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Government subsidies
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
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 throughsecond quarter of previous
fiscal year
(from January 1, 2022
to June 30, 2022)
39,61730,183
9,433

Cumulative period throughsecond quarter of current
fiscal year
(from January 1, 2023
to June 30, 2023)
44,87833,587
11,291

1,868
2,003
215
0
143
13
131
180
1,355
1,476
7,389
2,044

2,001
2,208
265
4
178
19
144
256
1,479
1,755
8,314
2,976

61
56
25
65
20
37
267

74
57
20
14
18
185

0
4
8
13
2,298

1
2
6
4
14
3,147

1
1

49
49

6
44
*188
239
2,060
636
1
637
1,422
(0)
1,422

18
49
67
3,129
981
14
995
2,133
2,133

- 15 -

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

1,422

2,133

(0)

623

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

11

6Foreign currency translation adjustment

319

183

Remeasurements of defined benefit plans, net of tax

(7)

(4)

Total other comprehensive income

322

808

1,744

2,942

1,743

2,942

1

-

Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests- 16 -

(3) Consolidated Statement of Cash Flows(Million yen)
Cumulative period throughsecond quarter of previous
fiscal year
(from January 1
to June 30, 2022)
Cash flow 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
and other officers
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Loss (gain) on investments in partnerships
Loss (gain) on sales of non-current assets
Government subsidies
Loss on retirement of non-current assets
Loss (gain) on sales of investment securities
Loss on reduction on non-current assets
Decrease (increase) in notes and accounts receivabletrade
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 flow used in investment 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
Collection of loans receivable
Payments for leasehold and guarantee deposits
Proceeds from government subsidies
Other, net
Net cash provided by (used in) investment activities
Cash flow used in 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- 17 -

Cumulative period throughsecond quarter of current
fiscal year
(from January 1
to June 30, 2023)

2,060
945
188
0
2

3,129
1,014
1
42

(16)

(23)

(169)
(118)
0
(1)
6
44
-

(49)
(131)
1
6
(49)
18
49

4,705

5,566

(843)
(1,641)
74
5,238
124
(0)
(912)
4,449

(738)
(2,857)
162
6,143
132
(1)
(1,208)5,066(5,000)4,500(1,323)
3
(184)
(154)
60
8
(16)
41
(2,065)(6,000)6,500(4,351)(1,465)
(18)
6
28
(200)
49
36
(5,413)

(12)
(473)
(27)
(514)

(12)
(664)
(26)
(703)

163

117

2,033
18,067*20,101(933)
18,653*17,719

[Notes](Additional information)
While COVID-19 will continue to have the potential to affect the performance of the Group for the foreseeable
future, we assume that the current recovery trend will continue in the year ending December 31, 2023 and beyond.
This assumption serves as the basis for accounting estimates such as impairment of non-current assets and therecoverability of deferred tax assets. There are many uncertainties regarding the COVID-19 pandemic, and futurechanges in the business environment may affect our financial position and operational results in the future.
(Quarterly Consolidated Statement of Comprehensive Income)* Impairment loss
First two quarters of previous fiscal year (from January 1, 2022 to June 30, 2022)
The Group recorded impairment loss on the following asset group during the cumulative period through thesecond quarter of the consolidated fiscal year under review:
Location

Use

Type

Hidaka, Saitama Prefecture

Assets planned for sale

Machinery and equipment

Impairment loss (million yen)188

In principle, the Group groups assets for business use used by the Company by the business site to which they
belong and groups dormant assets and assets planned for sale for each property. Assets of affiliates are grouped
on a per-company basis.
In accordance with a decision to sell the assets planned for sale shown above, impairment loss (188 million yen)
was recorded as extraordinary losses during the cumulative period through the second quarter of the consolidated
fiscal year under review, in the amount of the resulting decrease in book value to the recoverable value.
The recoverable value was measured using the net sale price and calculated based on the planned sale price.
First two quarters of current fiscal year (from January 1, 2023 to June 30, 2023)
Not applicable(Quarterly Consolidated Statement of Cash Flows)* Relationship between ending balance of cash and cash equivalents and amounts of accounts shown on the
Quarterly Consolidated Balance Sheet
Cumulative period through second quarter of Cumulative period through second quarter ofprevious fiscal year
current fiscal year
(from January 1, 2022 to June 30, 2022)(from January 1, 2023 to June 30, 2023)
Cash and deposits

17,611 million yen

16,729 million yen

Time deposits with deposit
terms of more than threemonths(10) million yen(10) million yen

Securities redeemable within
three months from the date ofpurchase

2,500 million yen

1,000 million yen

Cash and cash equivalents

20,101 million yen

17,719 million yen- 18 -

(Shareholders’ Equity)
Cumulative period through second quarter of previous fiscal year (from January 1, 2022 to June 30, 2022)
1.

Cash dividends paid
Resolution

Class of stock

Total dividends(million yen)March 30, 2022
annualshareholders’meeting

Common stock

474

2.

Dividend pershare (yen)

25.00

Basis date

Effective date

Source ofdividends

December 31,
2021

March 31, 2022

Retainedearnings

Dividends for which the basis date falls in the cumulative period through the second quarter of theconsolidated fiscal year but for which the effective date postdates the end of the second quarter of theconsolidated fiscal year
Resolution

Class of stock

Total dividends(million yen)August 5, 2022
annualshareholders’meeting

Common stock

570

3.

Dividend pershare (yen)

30.00

Basis date

Effective date

Source ofdividends

June 30, 2022

September 2,
2022

Retainedearnings

Significant fluctuations in shareholder’s equity
Not applicable

Cumulative period through second quarter of current fiscal year (from January 1, 2023 to June 30, 2023)
1.

Cash dividends paid
Resolution

Class of stock

Total dividends(million yen)March 28, 2023
annualshareholders’meeting

Common stock

665

2.

Dividend pershare (yen)35.00

Basis date

Effective date

Source ofdividends

December 31,
2022

March 29, 2023

Retainedearnings

Dividends for which the basis date falls in the cumulative period through the second quarter of theconsolidated fiscal year but for which the effective date postdates the end of the second quarter of theconsolidated fiscal year
Resolution

Class of stock

Total dividends(million yen)August 7, 2023
annualshareholders’meeting

Common stock

666

3.

Dividend pershare (yen)35.00

Significant fluctuations in shareholder’s equity
Not applicable- 19 -

Basis date

Effective date

Source ofdividends

June 30, 2023

September 4,
2023

Retainedearnings

(Segment and Other Information)
Segment information
I.

Cumulative period through second quarter of previous fiscal year (from January 1, 2022 to June 30, 2022)

1.

Net sales and profit or loss and breakdown of profit by reportable segment(Million yen)Amountposted in the
Quarterly
Adjustment
Consolidated(Note 2)
Statement of
Income(Note 3)

Reportable segment
Paper
Products

Film
Packaging

Other
businesses(Note 1)

Subtotal

Total

Net sales
Paper bags

11,259-11,259-11,259-11,259Folding paper cartons

9,728

-

9,728

-

9,728

-

9,728

Corrugated boxes

5,947

-

5,947

-

5,947

-

5,947

Printing

1,063

-

1,063

-

1,063

-

1,063

Film Packaging

-

5,221

5,221

-

5,221

-

5,221

Others

-

-

-

6,396

6,396

-

6,396

27,9985,221

33,2206,396

39,617-39,617

-

-

-

-

-

-

-

27,9985,221

33,2206,396

39,617-39,617

-

-

-

-

-

-

-

27,9985,221

33,2206,396

39,617-39,617

1,952

197

2,150

431

2,582

(537)

2,044

Revenue from contracts
with customers
Other revenue
Sales to externalcustomers
Intersegment sales andtransfers
Subtotal
Segment profit

Notes: 1. “Other” includes supplies and other sundry items.
2. The adjustment amount of −537 million yen to segment profit includes 6 million yen in elimination of intersegment
transactions and −543 million yen in Companywide costs, which are not allocated to individual reporting segments.
Companywide costs consist mainly of costs related to parent-company administrative sections.
3. Segment profit is adjusted against operating profit on the Quarterly Consolidated Statement of Income.

2.

Impairment loss or goodwill etc. on non-current assets by reporting segment(Significant impairment losses on non-current assets)
An impairment loss was recorded on machinery and equipment in the Paper Products business segment. The
impairment loss recorded was 188 million yen in the cumulative period through the second quarter of theconsolidated fiscal year under review.

- 20 -

II.

Cumulative period through second quarter of current fiscal year (from January 1, 2023 to June 30, 2023)
1.

Net sales and profit or loss and breakdown of profit by reportable segment(Million yen)
Reportable segment

Paper
Products

Film
Packaging

Other
businesses(Note 1)

Subtotal

Amountposted in the
Quarterly
Adjustment
Consolidated(Note 2)
Statement of
Income(Note 3)Total

Net sales
Paper bags

12,993-

12,993-

12,993-

12,993

Folding paper cartons

11,262-

11,262-

11,262-

11,262

Corrugated boxes

6,343

-

6,343

-

6,343

-

6,343

Printing

1,135

-

1,135

-

1,135

-

1,135

Film Packaging

-

6,654

6,654

-

6,654

-

6,654

Others

-

-

-

6,489

6,489

-

6,489

31,734

6,654

38,3896,489

44,878-44,878

-

-

-

-

-

-

-

31,734

6,654

38,3896,489

44,878-44,878

-

-

-

-

-

-

-

Subtotal

31,734

6,654

38,3896,489

44,878-44,878Segment profit

2,715

288

3,004

485

3,490

(513)

2,976

Revenue from contracts
with customers
Other revenue
Sales to externalcustomers
Intersegment sales andtransfers

Notes: 1. “Other” includes supplies and other sundry items.
2. The adjustment amount of −513 million yen to segment profit includes 6 million yen in elimination of intersegment
transactions and −519 million yen in Companywide costs, which are not allocated to individual reporting segments.
Companywide costs consist mainly of costs related to parent-company administrative sections.
3. Segment profit is adjusted against operating profit on the Quarterly Consolidated Statement of Income.

2.

Impairment loss or goodwill etc. on non-current assets by reporting segment
Not applicable(Revenue recognition)
A breakdown of revenues arising from contracts with customers is provided under [Notes] (Segment and Other
Information).

- 21 -

(Per Share Information)
Presented below are basic earnings per share, diluted earnings per share, and the basic assumptions underlying the
calculations thereof.

Item

Second quarter of previous
fiscal year
(from January 1, 2022
to June 30, 2022)(1) Basic earnings per share

Second quarter of current
fiscal year
(from January 1, 2023
to June 30, 2023)

74.85 yen

112.16 yen

1,422

2,133

Amounts not available to common shareholders(million yen)--

Profit attributable to owners of parent related tocommon shares (million yen)

1,422

2,133

Average number of shares outstanding during theperiod (thousand shares)

19,002

19,02374.78 yen

112.08 yen

Adjustment to profit attributable to owners ofparent (million yen)--

Increase in number of common shares (thousand
shares)16

13

Antidilutive securities excluded from diluted earnings
per share calculations for which material changes haveoccurred since the end of the previous consolidated
fiscal year--

(Basic assumptions underlying calculations)
Profit attributable to owners of parent (million yen)

(2) Diluted earnings per share(Basic assumptions underlying calculations)(Material Subsequent Events)
Not applicable
2.

Other
In its meeting held August 7, 2023, the Board of Director resolved to pay interim dividends for the 72nd term(from January 1, 2023 to December 31, 2023) to shareholders recorded in the final shareholder registry of June 30,
2023, as follows:(i)

Total amount of dividends

666 million yen(ii) Amount per share

35.00 yen(iii) Effective date of claims for payment and payment start date

- 22 -

September 4, 2023

Part 2. Information concerning guarantor of filing company
Not applicable- 23 -

Independent Auditor’s Report on Quarterly Review
August 10, 2023
To: The Board of Directors,
THE PACK CORPORATION
Ernst & Young ShinNihon LLC
Osaka OfficeYasuhiro Kozaki, Designated Limited Liability Partner, Managing Partner
Certified Public Accountant
Ryoichi Hayama, Designated Limited Liability Partner, Managing Partner
Certified Public Accountant

Auditor's conclusions
We reviewed the quarterly consolidated financial statements for THE PACK CORPORATION included in
Financial Information for the second quarter of the consolidated fiscal period under review (April 1 – June 30,2023) and for the cumulative period through the second quarter of the consolidated period under review (January 1– June 30, 2023), based on the relevant Consolidated Balance Sheet, Consolidated Statement of Income,Consolidated Statement of Comprehensive Income, Consolidated Statement of Cash Flows, and Notes to theConsolidated Financial Statements. Our review was carried out in accordance with the provisions of Article 193-2,
Paragraph 1 of the Financial Instruments and Exchange Act of Japan.
Our quarterly review found that the quarterly consolidated financial statements referred to above conform togenerally accepted standards for the preparation of quarterly consolidated financial statements in Japan. The
review found no irregularities in the state of finances as of June 30, 2023, or in business results or cash flows forthe cumulative period through the second quarter of the consolidated period ended on that date for THE PACKCORPORATION and its consolidated subsidiaries.
Evidence for the auditor’s conclusions
We undertook our quarterly review in accordance with generally accepted principles for quarterly reviews in Japan.
Our responsibilities under these principles for quarterly reviews are described under “Auditor’s responsibilities inquarterly review of financial statements.” In accordance with rules of professional ethics in Japan, we are
independent from the Company and its consolidated subsidiaries and meet all other ethical requirements forauditors. We believe we have obtained sufficient and appropriate evidence for our conclusions.
Responsibilities of management and of Statutory Auditors and the Audit and Supervisory Committee regarding
quarterly financial statements
Management is responsible for appropriately preparing and presenting quarterly consolidated financial statementsin accordance with generally accepted standards for the preparation of quarterly consolidated financial statements
in Japan. This includes the implementation and maintenance of internal controls deemed necessary by management
to enable the preparation and fair presentation of quarterly consolidated financial statements free of material
misstatements, whether attributable to fraud or error.
In preparing the quarterly consolidated financial statements, management is responsible for assessing the validityof the quarterly financial statements based on the going-concern assumption and disclosing, as necessary, mattersrelated to the going-concern assumption in accordance with generally accepted standards for the preparation ofquarterly consolidated financial statements in Japan.
The Statutory Auditors and the Audit and Supervisory Committee are responsible for monitoring the performanceof the duties of the directors in implementing and maintaining the financial reporting process.

- 24 -

Responsibilities of the auditor for quarterly reviews of quarterly consolidated financial statements
Our responsibility is to express in the Report on Quarterly Review our conclusions concerning the quarterly
consolidated financial statements from an independent standpoint based on the quarterly review.
In accordance with generally accepted principles for quarterly reviews in Japan, we implement the following
measures through the quarterly review process based on our judgment as specialists and in the professional spirit ofskeptical inquiry:
 We question parties, consisting mainly of members of management and persons with responsibility for mattersrelated to finance and accounting, and implement analytical and other quarterly review procedures. In
accordance with audit principles generally accepted in Japan, the scope of procedures for quarterly reviews isnarrower than for annual audits.
 If any material uncertainties are identified with regard to phenomena or circumstances that could raise material
doubts concerning the going-concern assumption, we reach a conclusion on whether the quarterly consolidated
financial statements meet the requirements for quarterly consolidated financial statements generally accepted inJapan or present any grounds for believing that they may not present information fairly, based on the evidence
obtained. If any material uncertainties are recognized regarding the going-concern assumption, we must urge inour report on quarterly results that the notes to the quarterly consolidated financial statements include description
concerning material uncertainties and, if description in the notes to the quarterly consolidated financial
statements concerning material uncertainties is inappropriate, our audit conclusions concerning the quarterly
consolidated financial statements shall be negative or indicate a conditional approval. The auditor’s conclusions
are based on evidence obtained through the date of the quarterly review report; future events or conditions may
render it impossible for the Company to continue as a going concern.
 We assess whether the presentation and notes in the quarterly consolidated financial statements present grounds
to believe they may not meet the requirements for quarterly consolidated financial statements generally acceptedin Japan. We also assess the presentation, structures, and content of the quarterly financial statements, including
related notes and whether the quarterly financial statements are free of any factors suggesting they do notaccurately present the underlying transactions and accounting facts.
 We obtain evidence concerning financial information on the Company and its consolidated subsidiaries to serveas the basis for our conclusions concerning the quarterly consolidated financial statements. We are responsiblefor instruction, oversight, and implementation related to quarterly reviews of the quarterly consolidated financial
statements. We are solely responsible for our audit conclusions.
We report to the Statutory Auditors and the Audit and Supervisory Committee on the scope and timing of theplanned quarterly review and any material discoveries made during the quarterly review process.
We duly report to the Statutory Auditors and the Audit and Supervisory Committee on our independence inaccordance with the rules of professional ethics in Japan; on matters that could reasonably be deemed to affect theindependence of our auditors; on the nature of measures taken to eliminate such impediments, if any; and on thenature of safeguards applied to mitigate such impediments to acceptable levels, if any.
Conflicts of interest
Our firm and managing partners have no interest in the Company or in its consolidated subsidiaries that require
disclosure pursuant to the provisions of the Certified Public Accountants Act of Japan.

Notes: 1. The original of the above quarterly review report is retained separately by the Company (i.e., the organization filing theQuarterly Report).
2. XBRL data is not subject to quarterly review.

- 25 -

[Cover page]
Document filed:

Confirmation Letter

Legal basis:

Article 24-4-8, Paragraph 1 of the Financial Instruments and Exchange Act

Submitted to:

Director-General, Kinki Local Finance Bureau

Filing date:August 10, 2023

Company name (Japanese):

ザ・パック株式会社

English name:

THE PACK CORPORATIONName and title of representative:

Hideaki Yamashita, President & CEO

Name and title of CFO:

Not applicable

Location of head office:9-3 Higashiobase 2-chome, Higashinari-ku, Osaka, Japan

Locations where this document is

THE PACK CORPORATION

available for public inspection:(9-3 Higashiobase 2-chome, Higashinari-ku, Osaka, Japan)
Tokyo Stock Exchange(2-1 Nihonbashi Kabutocho, Chuo-ku, Tokyo, Japan)- 26 -

1. Matters related to the propriety of the content of the Quarterly Report
President and CEO Hideaki Yamashita has confirmed that the information divulged in the Company’s Quarterly
Report for the second quarter of 72nd term (April 1 – June 30, 2023) meets the requirements of the Financial
Instruments and Exchange Act of Japan.
2. Special notes
We found no other matters worthy of note.

- 27 -