Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between
this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translationor for direct, indirect or any other forms of damages arising from the translation.

May 13, 2022

Summary of Consolidated Financial and Business Results
for the Year Ended March 2022 (Japanese GAAP)
Company Name:
Code No./Stock Exchange: 3877/Tokyo
Representative:
Hisashi Uematsu, President & Chief Executive Officer
Contact:
Yoshio Akinaga, General Manager, Administrative Division
URL:
https://www.chuetsu-pulp.co.jp/
Telephone:
0766-26-2404 (Overseas: +81-76-626-2424)
Ordinary general meeting of shareholders to be held:
June 24, 2022
Statutory annual report to be presented:
June 27, 2022
Start of dividend payout:
June 27, 2022
Supplementary briefs for financial results to be presented: Yes
Financial results briefing to be held:
Yes(All yen figures are rounded down to the nearest one million yen)
(Figures shown in percentage are ratios compared to the same period of the previous fiscal year)

1. Consolidated financial results for the Year Ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(1) Consolidated Business Results
Net sales

Operating profit

Ordinary profit

Fiscal year%
Millions of yen% Millions of yen
Millions of yen
ended
March 31, 2022
90,104
10.0
2,352
3,077
81,938(13.9)(347)(319)
March 31, 2021
Note: Comprehensive income: Fiscal year ended March 31, 2022: 1,456 million yen ( %)Fiscal year ended March 31, 2021: (674) million yen ( %)Profit per share

Diluted profit per share

Fiscal year
Yen
ended
March 31, 2022
95.02
(78.85)
March 31, 2021
Note: Equity in earnings of affiliates

Yen%

Profit attributable toowners of parent
Millions of yen%
1,268(1,052)

Ratio of profit to

Ratio of ordinary
income to total assets
%
%

2.6
(2.2)
Fiscal year ended March 31, 2022: 306 million yen
Fiscal year ended March 31, 2021: 51 million yen

Ratio of operating
income to net sales
%

2.5
(0.3)

Note: The Company
etc. effective from the beginning of the current consolidated fiscal year.
The figures for the fiscal year ending March 31, 2022 are the figures after the application of the accounting standards.

2.6
(0.4)
2020),(2) Consolidated Financial Condition
As ofMarch 31, 2022
March 31, 2021

Total assets
Net assets
Net assets per share
Yen
Millions of yen
Millions of yen%
122,029
48,62039.8
3,639.20
123,490
47,45538.4
3,550.96
As of March 31, 2022: 48,584 million yen
As of March 31, 2021: 47,408 million yen

etc. effective from the beginning of the current consolidated fiscal year.
The figures for the fiscal year ending March 31, 2022 are the figures after the application of the accounting standards.

ó ï ó

(3) Consolidated Cash Flows

Millions of yen

Millions of yen

Millions of yen

Cash and cash
equivalents
at the end of
periodMillions of yen

8,257
5,965

(3,150)(3,898)(5,894)
6,284

14,861
15,575

Cash flows fromoperating activities
Fiscal year
ended
March 31, 2022
March 31, 2021

Cash flows frominvesting activities

Cash flows fromfinancing activities

2. Cash Dividends

Total dividend Dividend payout ratio Dividend on net
assets(Consolidated)(Annual)End of 1Q End of 2Q End of 3Q End of FY Annual(Consolidated)
Yen
Yen
Yen
Yen
Yen Millions of yen%%
Dividend per share

Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023
(Forecast)

0.00

0.00

0.00

20.00

20.00

40.00

20.00

20.00

40.00

534

42.1

1.1

48.5

3. Consolidated Financial Forecasts for the Year Ending March 2023 (from April 1, 2022 to March 31, 2023)
For figures shown in percentage, the full year ratios are compared to the previous fiscal year, and the quarterly ratios arecompared to the same period of the previous fiscal year

2Q (cumulative)
Full year

Net sales

Operating profit

Ordinary profit

Profit attributable toowners of parent

Millions of yen%
48,000 11.1
101,000 12.1

Millions of yen%
400 (63.9)
1,500 (36.2)

Millions of yen%
500 (64.6)
1,700 (44.8)

Millions of yen%
200 (75.1)
1,100 (13.3)

Net profit per
share
Yen
14.98
82.39

Notes
(1) Changes in important subsidiaries during the period
No(changes in specified subsidiaries resulting in changes in scope of consolidation):

New (company name)
Excluded company name(2) Changes in accounting policies, changes in accounting estimates, and restatements
Yes1) Changes in Accounting Policies due to Revision of Accounting Standards, etc.
2) Changes in accounting policies other than (1)3) Changes in accounting estimates
4) Correction re-representation

No
No
No

(3) Number of shares issued and outstanding (common stock)1) Number of shares outstanding at end of period(including treasury stock)2) Number of own shares at end of period

3) Average number of shares during the period

As ofMarch 31,
2022
As of
March 31,2022
Fiscalyear
ended
March 31,
2022

ó î ó

13,354,688 shares
4,314 shares

13,350,699 shares

As of
March
31, 2021
As of
March
31, 2021
Fiscal
year
ended
March
31, 2021

13,354,688 shares
3,820 shares

13,351,001 sharesReference: Summary of Non-Consolidated Financial Results
1. Results for the Year Ended March 31, 2022 (April 1, 2021 - March 31, 2022)(1) Non-consolidated Business Results(Figures shown in percentage are ratios compared to the previous fiscal year)
Net sales
Millions of yen
Fiscal year
ended
March 31, 2022
March 31, 2021

84,532
76,644

Operating profit% Millions of yen
10.3(14.0)

Ordinary profit% Millions of yen

1,942
(641)

2,452
(577)

Profit per share%854(1,204)

Diluted profit per share
Yen

Fiscal year
ended
March 31, 2022
March 31, 2021

Profit% Millions of yen

Yen

63.98
(90.22)effective from the beginning of the current consolidated fiscal year.
The figures for the fiscal year ending March 31, 2022 are the figures after the application of the accounting standards.
(2) Non-consolidated financial position
Total assets
Net assets
Net assets per share
As of
Yen
Millions of yen%
Millions of yen
112,435
41,60937.0
3,116.72
March 31, 2022
March 31, 2021
114,297
40,91835.8
3,064.83
As of March 31, 2022: 41,609 million yen
As of March 31, 2021: 40,918 million yen
Note: The Company has applied theeffective from the beginning of the current consolidated fiscal year.
The figures for the fiscal year ending March 31, 2022 are the figures after the application of the accounting standards.

2. Non-Consolidated Forecast for the Fiscal Year Ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
For figures shown in percentage, the full year ratios are compared to the previous fiscal year, and the quarterly ratios
are compared to the same period of the previous fiscal year
Net sales
Millions of yen
2Q (cumulative)
Full year

Operating profit%

46,000 13.5
95,500 13.0

Millions of yen

Ordinary profit%

Millions of yen

200 (79.6)
1,100 (43.4)

Profit%200 (81.6)
1,100 (55.2)

Millions of yen

Profit per share
%

Yen

0
600 (29.8)

0.00
44.94

forecasts and other special notes
The above forecasts are based on information available as of the date of publication of this document and on certain assumptions that
we consider reasonable and are therefore subject to a number of uncertainties. Actual results may differ from the above forecasts due
to changes in various factor.

ó í óFinancial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877)

3. Consolidated Financial Statements and Important Notes(1) Consolidated Balance Sheet(Unit: Millions of yen)
As of March 31, 2021

As of March 31, 2022

AssetsCurrent assets
Cash and deposits

15,575

14,861

21,286--

22,720

8,586

8,124

420

492

Raw materials and supplies

4,319

4,539

Other

2,855

2,564

(2)

(2)

53,04153,301

Notes and accounts receivable

trade

Notes and accounts receivable and contract
assetsMerchandise and finished goods
Work in process

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

51,75352,044

Accumulated depreciation(34,683)(35,505)

Buildings and structures, net

17,07016,539Machinery, equipment and vehicles

239,809240,663

Accumulated depreciation(212,490)(214,656)

27,31826,007

7,558

7,596

222

225

(147)

(144)

Leased assets, net

7580

Construction in progress

1,900

1,984

Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation

Other

3,154

3,268

(2,784)(2,787)370

480

54,293

52,688

Other

246

386

Total intangible assets

246

386

7,768

8,256

5,040

4,410

2,680

2,554

Other

472

455

Allowance for doubtful accounts

(52)

(44)

Total investments and other assets

15,90815,63270,44868,707-

20

123,490122,029

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
Long-term loans receivable fromsubsidiaries and affiliates
Deferred tax assets

Total non-current assets
Deferred assets
Total assetsó ì óFinancial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877)(Unit: Millions of yen)
As of March 31, 2021

As of March 31, 2022

Liabilities
Current liabilities
Notes and accounts payable

trade

11,802

12,97930,56827,328

Lease obligations

29

23

Income taxes payable

133

493

Short-term borrowings

Allowance for bonuses

466

512

Other

4,425

5,232

Total current liabilities

47,42546,56922,796

20,442

52

60

-

320

2

159

49

47

-

60

5,598

5,631

Non-current liabilities
Long-term borrowings
Lease obligations
Provisions for removal cost of property, plantand equipment
Provisions for environmental measures
Provisions for loss on business of subsidiaries
and affiliates
Provisions for business restructuring
Retirement benefit liability
Other

109

118

28,60826,83976,03473,408

Share capital

18,864

18,864

Capital surplus

16,253

16,253Retained earnings

11,92912,905(7)(7)

47,03948,015745

799

Foreign currency translation adjustment

(70)

31

Remeasurements of defined benefit plans

(306)

(262)

Total accumulated other comprehensive income

368

568

47

35

47,455

48,620123,490122,029

Total non-current liabilities
Total liabilities
Net assets
Shareholders equity

Treasury shares
Total shareholders equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities

Non-controlling interests
Total net assets
Total liabilities and net assetsó ë óFinancial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877)(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Unit: Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022

Net sales

81,938

90,104

Cost of sales

68,12676,235Gross profit

13,811

13,869

Sales commissions

4,406

182

Transportation costs

4,785

6,046

Storage costs

1,589

1,603

223

224

1,276

1,334

Retirement benefit expenses

105

110

R&D expenses

286

383

Depreciation

124

141

Other

1,360

1,488

Total selling, general and administrative expenses

14,15911,516

(347)

2,352

Interest income

8475

Dividend income

128

138

Commission received

54

Equipment rent

1215

Gain on sale of scrap

14

27

Foreign exchange gains

133

453

Gain on insurance claims

7

11

51

306

Other

19

19

Total non-operating income

456

1,052

Interest expenses

235

277

Commission paid

68

24

Depreciation and amortization

69

-

Other

54

26

Total non-operating expenses

427

328

(319)

3,077

Selling, general and administrative expenses

Officer s compensation or remuneration
Employees salaries and benefits

Operating profit (loss)
Non-operating income

Share of profit of entities accounted for using
equity method

Non-operating expenses

Ordinary profit (loss)ó ê óFinancial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877)(Unit: Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022

Extraordinary income
Gain on sale of investment securities

06

Gain on sale of non-current assets

2

13

Insurance claim income-

146

Gain on liquidation of subsidiaries and affiliates-

64

Total extraordinary income

3

230

Loss on retirement of non-current assets

184

470

Impairment losses

Extraordinary losses
482

337

Provision for fixed asset removal costs-

320

Provision for environmental measures-

156

Business restructuring expenses-

164

Special retirement benefits

27

22

Loss on valuation of investment securities

0

-

Other

83

117

Total extraordinary losses

778

1,589

(1,093)

1,718

Profit (loss) before income taxes and minority interests
Income taxes

current

111

390

Income taxes deferred

(152)

71

Total income taxes

(40)

461

(1,052)

1,256

0

(11)

(1,052)

1,268

Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parentó é óFinancial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877)

Consolidated Statements of Comprehensive Income(Unit: Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022

Profit (loss)(1,052)

1,256

274

125

43

44

59

30

377

199

(674)

1,456

(674)

1,468

0

(11)

Other comprehensive income
Valuation difference on available-for-salesecurities
Remeasurements of defined benefit plans, net oftax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparentComprehensive

incomeattributable

to

non-

controlling interestsó è óFinancial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877)(3) Consolidated Statements of Changes in Net Assets
Previous Consolidated Fiscal Year (April 1, 2020 to March 31, 2021)(Unit: Millions of yen)
Total
Shareholders equitynet

Accumulated other comprehensive income

asset
s

Net
unrealized gains
RetainCapitalCapitaled

stock

surplusearnings

Treasu
ry
stock

Total
shareholdersequity(losses)on- 9 -vailable-forsale
securitie

Foreigncurrencytranslationadjustments

Accumulatedretirement
benefits

Total

Non-

accumulcontrollin

ated

g

other

interests

comprehensiveincome(loss)s, net of
taxes
Balance at the
beginning of period

18,864

16,253

13,315(7)

48,426

385

(48)

(345)

(8)

47

18,864

16,253

13,315(7)

48,426

385

(48)

(345)

(8)

47

48,4
64

Cumulative effect of achange in accounting
policyBalance at beginning of
period reflecting changein accounting policy

48,4
64

Changes during theperiodDividends from surplus
Profit (loss) attributableto owners of parent

(333)

(333)

(1,052)(1,052)

Purchase of treasury

(0)

stock

(333)
(1,05
2)

(0)

(0)

Net changes of items
other than shareholders

360

(21)

39

377

0

378

equityTotal changes during
the period
Balance at the end of
period18,864

16,253(1,386)(0)(1,386)

360

(21)

39

377

0

11,929(7)

47,039

745

(70)

(306)

368

47

ó ç ó

(1,00
8)
47,4
55

Financial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877)

Consolidated Fiscal Year Under Review (April 1, 2021 to March 31, 2022)(Unit: Millions of yen)
Shareholders equity

Accumulated other comprehensive incomeNet
unrealized gains

RetainCapitalCapitaled

stock

surplusearnings

Treasu
ry
stock

Total
shareholdersequity(losses)on- 10 - vailablefor-salesecuritie

Total
Foreigncurrencytranslationadjustments

Accumulatedretirement
benefits

accumul

Non-

ated

control

Total

other

ling

net

comprehinterest

assetsensivesincome(loss)s, net of
taxes
Balance at the beginningof period

18,864

16,253

11,929(7)

47,039

745

(70)

(306)

368

47

47,455

Cumulative effect of achange in accounting

(24)

(24)

(24)

policyBalance at beginning of
period reflecting change

18,864

16,253

11,904(7)

47,014

745

(70)

(306)

368

47

47,431in accounting policy
Changes of items during
the period
Dividends from surplus
Profit (loss) attributableto owners of parent
Purchase

of

(267)

(267)

(267)

1,268

1,268

1,268

(0)

(0)

treasury

(0)

stock
Net changes of items
other than shareholders

54

101

43

199

(11)

188

equityTotal changes during theperiodBalance at the end of
period18,864

16,253

1,001

(0)

1,001

54

101

43

199

(11)

1,189

12,905(7)

48,015

799

31

(262)

568

35

48,620ó ïð ó

Financial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877)(4) Consolidated Statements of Cash Flows(Unit: Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022

Cash flows from operating activities
Profit before income taxes (-)(1,093)

1,718

Depreciation

6,764

6,269

482

337

(55)

(7)

-

156

Interest and dividend income

(212)

(214)

Interest expenses

235

277

Loss (gain) on sale of investment securities

(0)

(6)

Loss on retirement of non-current assets

53

127

Loss (gain) on valuation of investment securities

0

-

(2)

(13)

-

164

Decrease (increase) in trade receivables(313)(1,434)

Decrease (increase) in inventories

3,530

93

Impairment losses
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in allowance for environmental
measures

Loss (gain) on sale and disposal of property, plantand equipment, net
Business restructuring expenses

Decrease (increase) in other assets

(13)

(98)

Increase (decrease) in trade payables(2,962)

1,177

Increase (decrease) in retirement benefit liability

227

95

Increase (decrease) in accrued bonuses

(11)

46

-

320

(146)

(8)

(60)

(194)

(51)

(306)

-

(64)

(1)

(2)

Other, net

44

(89)

Subtotal

6,412

8,346

Increase (decrease) in provisions for fixed asset
removal costs
Increase (decrease) in other liabilities
Increase (decrease) in consumption taxes payableor receivable
Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on liquidation of subsidiaries andaffiliates
Increase (decrease) in provisions for loss on
business of subsidiaries and affiliates

Interest and dividends received

212

214

Interest paid

(233)

(270)

Income taxes paid

(425)

(32)

Net cash provided by (used in) operating activities

5,965

8,257

(4,776)(3,821)

3

19

(2)

(6)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant andequipment
Purchase of investment securitiesó ïï ó

Financial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877)(Unit: Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022

Proceeds from sale of investment securities

1

11

324

170

(0)

-

671

645

-

74

(0)

-

(119)

(243)

(3,898)(3,150)Net increase (decrease) in short-term borrowings

1,900(1,850)

Proceeds from long-term borrowings

17,300

4,660

Repayments of long-term borrowings(12,550)(8,403)(0)(0)

Dividends paid

(333)

(265)

Repayments of finance lease liabilities

(31)

(34)

Net cash provided by (used in) financing activities

6,284(5,894)073

Net increase (decrease) in cash and cash equivalents

8,352

(713)

Cash and cash equivalents at beginning of period

7,222

15,575

Cash and cash equivalents at end of period

15,575

14,861

Net decrease (increase) in short-term loans
receivable
Long-term loans advances
Proceeds from collection of long-term loans
receivable
Proceeds from liquidation of subsidiaries andaffiliates
Payments for fulfillment of asset retirement
obligations
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities

Purchase of treasury shares

Effect of exchange rate change on cash and cash
equivalentsó ïî ó

Financial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877)(Segment Information)
1. Overview of reportable segments(1) Method of determining reportable segments
The Company(2) Type of products and services belonging to each reportable segment
The Paper asiness.
(3) Matters concerning changes in reportable segments, etc.
There are no applicable items.
2. Method of calculating net sales, profit or loss, assets, and other items by reportable segment
Thematters for Preparing Consolidated F
Profits ofsegments are based on operating income. Intersegment sales and transfers are based on prevailingmarket prices.

ó ïí ó

Financial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877)

3. Information on net sales, profit or loss and other items by reportable segment
Previous

fiscal year (April 1, 2020 to March 31, 2021)(Unit: Millions of yen)
Reportable Segment
Paper and Pulp

Power

Manufacturing

Generation

67,3607,131Others
Total(Note)Total

Net sales
Sales to external customers
Intersegment sales and transfers

3,219

74,491

7,446

81,938

3,219

9,715

12,935

Total

70,5807,13177,711

17,162

94,873

Segment profit (loss)(2,150)

1,562

(587)

139

(448)

segments and includes the nanoforest, paper products
manufacturing, transportation, equipment design, construction and repair, raw materials, paper cutting, sorting andpackaging, and Chuetsu Eco Products.
Consolidated fiscal year under review (April 1, 2021 to March 31, 2022)(Unit: Millions of yen)
Reportable Segment
Pulp and Paper

Power

Manufacturing

Generation

75,429

6,450

Other
Total

(Note)Total

Net sales
Sales to external customers
Intersegment sales and transfers

3,730

81,8808,224

90,104

3,730

10,954

14,684

Total

79,1596,450

85,61019,179104,789

Segment profit

1,301

717

2,018

246

2,264

manufacturing, transportation, equipment design, construction and repair, raw materials, paper cutting, sorting andpackaging, and Chuetsu Eco Products.

ó ïì ó

Financial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877)

4. Difference between the total amount of reported segments and the amount recorded in the consolidated financial
statements and the main details of such difference (matters related to difference adjustment)
Previous consolidated fiscal year (April 1, 2020 to March 31, 2021)(Unit: Millions of yen)
Net sales

AmountTotal of reportable segments

77,711
17,162Elimination of intersegment transactions(12,935)

Net sales in consolidated financial statements

81,938(Unit: Millions of yen)

Profit (loss)

AmountTotal of reportable segments(587)

Income in139

Elimination of intersegment transactions

84

Other adjustments

16

Operating loss in consolidated financial statements(347)

Consolidated Fiscal Year Under Review (April 1, 2021 to March 31, 2022)(Unit: Millions of yen)
Net sales

AmountTotal of reportable segments

85,610Elimination of intersegment transactions(14,684)

Net sales in consolidated financial statements

90,104

19,179(Unit: Millions of yen)
ProfitAmountTotal of reportable segments

2,018
246

Elimination of intersegment transactions
Other adjustments

80
7Operating loss in consolidated financial statements

2,352

ó ïë ó