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 forthis translation or for direct, indirect or any other forms of damages arising from the translation.

November 10, 2022

Summary of Consolidated Financial Results for the Second Quarterof the Fiscal Year Ending March 31, 2023 (Japanese GAAP)
Company Name:
Chuetsu Pulp & Paper Co., Ltd. (the “Company”)
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: +81-766-26-2404)
Scheduled date of filing of quarterly report:
November 14, 2022
Start of dividend payout:
December 1, 2022
Supplementary briefs for quarterly financial results to be presented: Yes
Quarterly financial results briefing to be held:
Yes(All yen figures are rounded down to the nearest one million yen)
1. Consolidated Financial Results for the e Second Quarter of the Fiscal Year Ending March 31, 2023 (April 1 to September 30, 2022)(1) Consolidated Business Results (Cumulative)(Percentages represent year-on-year changes)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Six months ended
Millions of yen% Millions of yen%
Millions of yen%
Millions of yen%
September 30, 2022
49,289
14.0
1,502
35.6
2,542
79.8
1,779
121.8
43,220
September 30, 2021
15.6
1,108
1,414
802(Note) Comprehensive income: Six months ended September 30, 2022: 2,189 million yen (128.4%)
Six months ended September 30, 2021: 958 million yen ( %)Profit per share
Yen
Six months ended
September 30, 2022
133.31
September 30, 2021
60.10(2) Consolidated Financial Condition
Total assets
As ofMillions of yen
September 30, 2022
122,056
March 31, 2022
122,029

Diluted profit per share
Yen

Net assets
Millions of yen
50,542
48,620Shareholders’ equity%
41.4
39.8

Net assets per share
Yen
3,783.76
3,639.20(Reference) Shareholders’ equity As of September 30, 2022: 50,514 million yen As of March 31, 2022: 48,584 million yen
2. Cash Dividends
End of 1Q
YenDividend per share
End of 3Q
Yen

End of 2Q

Fiscal year ended
Yen
March 31, 2022
20.00
Fiscal year ending
20.00
March 31, 2023
Fiscal year ending
March 31, 2023
(Forecast)(Note) Revisions to the most recently announced dividend forecast during the period: None-1-

End of FY

Annual

Yen
20.00

Yen
40.00

20.00

40.00

Financial Results for 2Q of FY2023, Chuetsu Pulp & Paper Co., Ltd. (3877)

3.Consolidated Financial Forecasts for the Year Ending March 2023 (from April 1, 2022 to March 31, 2023)

Net sales
Millions of yen

Operating profit%

Millions of yen%(% = year-on-year change for each quarter and full-year)
Profit attributable toProfit
Ordinary profit
owners of parent
per shareYen
Millions of yen% Millions of yen%

Full year

106,500
18.2
1,300(44.7)
2,500 (18.8)(Note) Revisions to the most recently announced financial forecast during the period: Yes

1,500

18.2

112.36*Notes(1) Changes in important subsidiaries during the period: None(changes in specified subsidiaries resulting in changes in scope of consolidation)

New − (company name)
Excluded − (company name)(2) Application of special accounting methods for preparing quarterly consolidated financial statements: None(3) Changes in accounting policies, changes in accounting estimates, and restatements
1) 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: None: None: None: None(4) Number of shares issued and outstanding (common stock)1) Number of shares outstanding at end of period As of September 13,354,688 shares30, 2022(including treasury stock)2) Number of own shares at end of period
As of4,387 shares
September 30,2022
3) Average number of shares during the period
Six months
ended
13,350,338 shares
September 30,
2022

As of March 31,
2022

13,354,688 shares

As of March 31,2022
Six months
ended
September 30,
2021

4,314 shares

13,350,844 shares* Quarterly financial results are not subject to audit by a certified public accountant or auditing firm.
* Explanation of appropriate use of financial 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.

-2-

Financial Results for 2Q of FY2023, Chuetsu Pulp & Paper Co., Ltd. (3877)

2. Quarterly Consolidated Financial Statements and Important Notes(1) Quarterly Consolidated Balance Sheet(Unit: Millions of yen)

As of March 31, 2022

As of September 30, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable and contract assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets

14,861
22,720
8,124
492
4,539
2,564
(2)
53,301

11,845
23,112
9,936
630
5,804
2,504
(2)
53,832

52,044(35,505)
16,539240,663(214,656)
26,007
13,074(2,932)
10,141
52,68852,120(36,059)
16,061
241,151(216,034)
25,117
13,894(2,951)
10,942
52,121

386
386

348
348

8,256
7,420(44)15,632
68,70720
122,029

8,834
6,936(44)15,72568,19529
122,056

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
OtherAccumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Total assets-3-Financial Results for 2Q of FY2023, Chuetsu Pulp & Paper Co., Ltd. (3877)(Unit: Millions of yen)

As of March 31, 2022

As of September 30, 2022

Liabilities
Current liabilities
Notes and accounts payable trade
Short-term borrowings
Income taxes payable
Allowance for bonuses
OtherTotal current liabilities
Non-current liabilities
Long-term borrowings
Provisions for removal cost of property, plant andequipment
Provisions for environmental measures
Provisions for loss on business of subsidiaries andaffiliatesProvisions for business restructuring
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities

12,97927,328
493
512
5,255
46,56914,06424,208
541
510
4,170
43,49520,442

21,578

320

244

159

138

47

47

60
5,631
178
26,83973,4085,804
204
28,01871,514

18,864
16,253
12,905(7)
48,015

18,864
16,253
14,418(8)49,528799

1,052

31(262)568
35
48,620122,029

182
(248)
985
28
50,542122,056

Net assets
Shareholders equity
Share capital
Capital surplus
Retained earnings
Treasury sharesTotal shareholders equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-4-

Financial Results for 2Q of FY2023, Chuetsu Pulp & Paper Co., Ltd. (3877)

2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
For the Six-month Period(Unit: Millions of yen)Six months ended

Six months ended

September 30, 2021

September 30, 2022

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Sales commissions
Transportation costs
Storage costs
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets

Impairment losses
Business restructuring expenses
Special retirement benefits
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent-5-43,22036,634
6,585

49,28941,878
7,411

84
2,807
823
1,762
5,477
1,108

60
3,280
753
1,814
5,908
1,502

3873
103
236
31483

34
91
914
114
36
1,192145
31
177
1,414

125
27
153
2,542

1
11818339
22
18
380
1,035
143
95
238
797(5)
802

145
7736
1550
325
2,235
353
109
462
1,772
(7)
1,779

Financial Results for 2Q of FY2023, Chuetsu Pulp & Paper Co., Ltd. (3877)

Quarterly Consolidated Statements of Comprehensive Income
For the Six -month Period(Unit: Millions of yen)Six months ended

Six months ended

September 30, 2021

September 30, 2022

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparent
Comprehensive income attributable to noncontrolling interests

-6-

797

1,772

98
11263
1251

141

161
958

417
2,189

964

2,196

(5)

(7)

Financial Results for 2Q of FY2023, Chuetsu Pulp & Paper Co., Ltd. (3877)

3) Quarterly Consolidated Statements of Cash Flows(Unit: Millions of yen)Six months ended

Six months ended

September 30, 2021

September 30, 2022

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Foreign exchange gain/loss
Share of loss (profit) of entities accounted for using
equity method
Loss on retirement of non-current assets
Loss (gain) on sale and disposal of property, plantand equipment, net
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other assets
Increase (decrease) in trade payables
Increase (decrease) in other liabilities
Increase (decrease) in consumption taxes payableor receivable
Increase (decrease) in accrued bonuses
Increase (decrease) in retirement benefit liability
Increase (decrease) in provisions for fixed asset
removal costs
Business restructuring expenses
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of investment securities
Proceeds from sale of investment securities
Net decrease (increase) in short-term loans receivable
Proceeds from collection of long-term loans receivable
Other, net
Net cash provided by (used in) investing activities

-7-

1,035
3,186
(8)
(111)
145
(0)

2,235
2,920
77
0(126)
125
(499)

(236)

(114)

83

27(1)

(18)

1,472
652
(85)
(1,537)309(391)(3,215)
39
1,085
(279)

(115)

(210)

5
16(1)
193

-

(75)

1
4,812
111
(141)
32
4,815

36(114)
1,692
126
(129)
(304)
1,384

(1,786)
1(5)
(75)
327
(38)
(1,576)(2,988)62(0)017315(48)(2,641)

Financial Results for 2Q of FY2023, Chuetsu Pulp & Paper Co., Ltd. (3877)(Unit: Millions of yen)Six months ended

Six months ended

September 30, 2021

September 30, 2022

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Repayments of finance lease liabilities
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-8-(1,650)
3,560(5,004)
(0)
(0)
(16)
(3,111)(2,699)4,100(3,384)
(0)
(265)
(9)
(2,259)0499

128
15,575
15,703(3,016)
14,861
11,845Financial Results for 2Q of FY2023, Chuetsu Pulp & Paper Co., Ltd. (3877)(Segment Information)
Previous consolidated Six months ended (April 1, 2021 to September 30, 2021)1. Information on net sales, profit or loss by reportable segment(Unit: Millions of yen)

Reportable Segment
Paper and Pulp
Manufacturing

Power
Generation

Sales to external customers

35,9963,237Intersegment sales and transfers

1,873

Total

Other(Note)

Total

Net sales

Total
Segment profit

39,233

3,987

43,220

1,873

5,234

7,108

37,8703,237

41,107

9,221

50,328

594

435

1,030

45

1,076

Note: “Others” is a business segment not included in the reportable segments and includes the nanoforest, paper products
manufacturing, transportation, equipment design, construction and repair, raw materials, paper cutting, sorting and packaging, andChuetsu Eco Products.

2. Difference between the total amount of reported segments (profits and loss) and the amount recorded in the quarterly
consolidated financial statements and the main details of such difference (matters related to difference adjustment)(Unit: Millions of yen)

Profit (loss)

AmountTotal of reportable segments
Income in “Other” Segment
Elimination of intersegment transactions
Inventory adjustments
Other adjustments
Operating profit in consolidated financial statements (quarterly)-9-1,030
4536(13)
91,108Financial Results for 2Q of FY2023, Chuetsu Pulp & Paper Co., Ltd. (3877)

Current consolidated Six months ended (April 1, 2022 to September 30, 2022)
1. Information on net sales, profit or loss by reportable segment(Unit: Millions of yen)

Reportable Segment
Paper and Pulp
Manufacturing

Power
Generation

42,867

3,774

Other(Note)

Total

Total

Net sales
Sales to external customers
Intersegment sales and transfers
Total
Segment profit (loss)

489

46,641

2,648

49,289

489

5,729

6,219

43,357

3,774

47,131

8,377

55,509964503

1,467(44)1,423Note: “Others” is a business segment not included in the reportable segments and includes the nanoforest, paper products
manufacturing, transportation, equipment design, construction and repair, raw materials, paper cutting, sorting and packaging, andChuetsu Eco Products.

2. Difference between the total amount of reported segments (profits and loss) and the amount recorded in the quarterly
consolidated financial statements and the main details of such difference (matters related to difference adjustment)(Unit: Millions of yen)

Profit (loss)

AmountTotal of reportable segments
Income in “Other” Segment
Elimination of intersegment transactions
Inventory adjustments
Other adjustments
Operating profit in consolidated financial statements (quarterly)-10-1,467(44)40
30
81,502