Business Results for the Year Ended December 31, 2020
[Japan GAAP] (Consolidated)
Company:
Stock code:
Representative:
Contact:

February 5, 2021

Listed on TSE, First Section
URL: https://www.thepack.co.jp

The Pack Corporation

3950
Mitsuo Inada, President & CEO
Michihisa Fujii, Managing Director, Corporate Division
TEL: +81-6-4967-1221
Expected date of annual shareholders’ meeting:March 25, 2021
Expected starting date of dividend payment:
March 26, 2021
Expected starting date of filing of annual securities report:
March 25, 2021
Preparation of supplementary financial document: Yes
Results briefing:
Yes (for institutional investors and securities analysts)(Rounded down to million yen)
1. Consolidated business results for the year ended December 31, 2020
(January 1, 2020 through December 31, 2020)(1)

Consolidated operational results(% change from the previous corresponding period)
Net salesYear ended December 31, 2020
Year ended December 31, 2019
(Note) Comprehensive income

Year ended December 31, 2020
Year ended December 31, 2019

Million yen

78,44595,502

Profit attributable toowners of parent% Million yen%
Million yen%
Million yen%(17.9)
3,275(52.2)
3,606 (49.9)
2,392 (49.1)
2.6
6,850
(1.1)
7,199
(0.2)
4,700
(5.4)
Year ended December 31, 2020: 2,368 million yen (down 50.3%)
Year ended December 31, 2019: 4,763 million yen (up 13.2%)
Operating profit

Basic earnings
per share
Yen
126.01243.89(Reference) Investment earnings/loss on equity-method(2)

Diluted earnings
per share
Yen
125.85243.50Return on equity
%
4.1
8.2

Ratio of ordinary
profit to total assets
%
4.2
8.2

Ratio of operating
profit to net sales
%
4.2
7.2

Year ended December 31, 2020: - million yen
Year ended December 31, 2019: - million yen

Consolidated financial position
Total assets

Million yen

83,55688,446(Reference) Owner’s equity

Capital adequacy
ratio

Net assets

Million yen

Year ended December 31, 2020
Year ended December 31, 2019(3)

Ordinary profit

59,73958,495

Net assets per share

%
71.4
66.0

Yen
3,141.09
3,076.27

As of December 31, 2020: 59,651 million yen
As of December 31, 2019: 58,371 million yen

Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Million yen

Million yen

Million yen

Million yen

Year ended December 31, 2020
Year ended December 31, 2019

3,158
6,599

(5,013)(4,136)(1,214)(3,319)15,22818,307

2. Dividends
Dividend per share
End of 1Q End of 2Q End of 3Q
Year ended December 31, 2019Year ended December 31, 2020
Year ending December 31, 2021
(forecast)Year-end

Total

Yen
-

Yen
25.00
30.00

Yen
-

Yen
30.00
30.00

Yen
55.00
60.00

-

25.00

-

25.00

50.00

Ratio of total
Dividend
dividend to net
payout ratio
assets(Consolidated)(Consolidated)
Million yen
%
%
1,043
22.6
1.8
1,138
47.6
1.9
Total
dividends(Total)35.2

3. Forecast of consolidated results for the year ending December 31, 2021
(January 1, 2021 through December 31, 2021) (% change from the previous corresponding period)
Net sales
Second half (accumulated)
Full year

Million yen %36,500 1.3
81,000 3.3

Operating profit
Million yen
1,400
3,800

%
13.8
16.0

Basic
Profit attributableearnings per
to owners of parent
shareMillion yen% Million yen%
Yen
1,600 16.3
1,100 27.3
57.92
4,000 10.9
2,700 12.9
142.17
Ordinary profit*Notes(1)

Material changes in subsidiaries during this period (changes in scope of consolidations resulting from change insubsidiaries): None

(2)

Changes in accounting policies, accounting estimates, and retrospective restatement
1) Changes in accounting policies based on revisions of the accounting standard: None
2) Changes in accounting policies other than ones based on revisions of the accounting standard: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None(3)

Number of issued and outstanding shares (common stock)1)

Number of issued and outstanding shares at the end of fiscal year (including treasury shares)2)

Number of treasury shares at the end of fiscal year

3)

Average number of shares

As of December 31, 2020:
As of December 31, 2020:
As of December 31, 2020:

19,900,000 shares

As of December 31, 2019:

19,900,000 shares909,347 shares

As of December 31, 2019:925,347 shares

18,986,206 shares

As of December 31, 2019:19,273,418 shares* The current financial summary is not subject to audit by certified public accountants or auditing firms.
* Explanation regarding appropriate use of business forecasts and other special instructions
Note concerning forward-looking statements
Forecasts regarding future performance in these materials are based on assumptions judged to be valid and information
available to the Company’s management at the time the materials were prepared. They do not represent guarantees by theCompany regarding future performance. Actual results may differ significantly from forecasts for various reasons.

The Pack Corporation (3950) Financial Report for Fiscal Year 2020

Contents of Attachments
1.
(1)
(2)
(3)
(4)

Overview of Operational Results
Operational Results
Financial Position
Cash Flows
Outlook

2
2
2
3
3

2.

Basic Approach to Selecting Accounting Standards

4

3.
(1)
(2)
(3)
(4)
(5)

Consolidated Financial Statement and Notes
Consolidated Balance Sheet
Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Going Concern Assumption
Segment and Other Information
Per Share Information
Material Subsequent Events

5
5
7
9
11
12
12
12
14
14

- 1 -

The Pack Corporation (3950) Financial Report for Fiscal Year 2020

1. Overview of Operational Results(1)

Operational Results

Japan’s economy in the consolidated fiscal year under review was marked by extreme challenges associated with the
COVID-19 pandemic. While economic activity resumed gradually, subsequent waves of infections dampened recovery inconsumer spending. The outlook for the economy remains unclear.
The United States economy is recovering, with alternating loosening and strengthening of restrictions. The continuing spreadof COVID-19 and, in part, escalating tensions with China, mean the future outlook is unclear. In contrast, with economic
activity resuming ahead of other countries, driven largely by domestic demand and exports, China’s economy experienced
steady recovery in consumer spending and continually improving conditions.
In 2020, under the slogan “Gather the strengths of our group, and progress forward with tenacity,” group companies worked
collectively to increase earnings by venturing into new markets, making substantial capital expenditures, and improving
quality management. Nevertheless, the continuing COVID-19 pandemic affected business performance.
Net sales fell 17.9% year on year to ¥78,445 million; operating profit fell 52.2% to ¥3,275 million; ordinary profit fell 49.9%
to ¥3,606 million; and profit attributable to owners of parent fell 49.1% to ¥2,392 million.
The business performance for each segment is given below.
(Paper Products)
The paper products segment in 2020 accounted for 65.5% of consolidated sales. Sales of paper bags, which accounted for
27.4% of consolidated sales, declined by 26.6% to 21,471 million yen, due to slowing consumer spending attributable to the
COVID-19 pandemic and lower sales at overseas subsidiaries, also affected by COVID-19.
Sales of folding paper cartons, which accounted for 22.0% of consolidated sales, fell 6.1% to 17,237 million yen. Sales ofcartons for takeout/delivery food products and to the e-commerce sector were firm; however, sales to specialty retail storesin Japan fell, due to COVID-19.
Sales of corrugated boxes, which accounted for 13.5% of consolidated sales, increased 1.1% to 10,625 million yen, a resultof firm sales to the e-commerce sector.
Printing sales, which accounted for 2.6% of consolidated sales, decreased 7.3% to 2,051 million. This was the result of lower
sales at Keihin Tokushu Printing Corp. and NIKKO PRINT CORPORATION.
Overall, sales in this segment fell 14.9% to 51,386 million yen. Operating profit fell 40.7% to 3,124 million yen.
(Film Packaging)
The film packaging segment accounted for 17.2% of consolidated sales in 2020. Segment sales fell 31.4% to 13,484 million
yen due to declining sales of disposable diaper products, lower sales to specialty retail stores in Japan due to COVID-19,
and the impact of a mandatory charge for plastic shopping bags that went into effect on July 1, 2020. Operating profit fell
50.9% to 511 million yen.
(Other Businesses)
Other businesses accounted for 17.3% of consolidated sales in 2020. Sales fell 12.3% to 13,574 million yen due to lower
sales of miscellaneous supplies to large retailers. Operating profit fell 49.8% to 748 million yen.
(2)

Financial Position

Assets totaled 83,556 million yen at the end of 2020, down 4,890 million yen from the end of 2019. Major factors included
a decline of 1,083 million yen in cash and deposits and a decline of 3,986 million yen in notes and accounts receivable-trade.
Liabilities fell 6,135 million yen to 23,816 million yen. The primary factors were decreases of 3,821 million yen in notes
and accounts payment-trade, 999 million yen in income taxes payable, and 889 million yen in retirement benefit liability.

- 2 -The Pack Corporation (3950) Financial Report for Fiscal Year 2020

Net assets grew by 1,244 million yen to 59,739 million yen. The key factor was an increase of 1,253 million yen in retained
earnings.
(3)

Cash FlowsThe balance of cash and cash equivalents at the end of 2020 fell 3,079 million yen, or 16.8%, from the end of 2019 to
15,228 million yen.
<Cash flows from operating activities>
Operating activities provided net cash of 3,158 million yen (down 52.1% from net cash provided of 6,599 million yen in2019). The principal factors were profit before income taxes of 3,566 million yen, depreciation of 1,850 million yen, andincome taxes paid of 1,965 million yen.
<Cash flows from investing activities>
Investing activities used net cash of 5,013 million yen (net cash used of 4,136 million yen in 2019). The principal factors
were outlays of 8,099 million yen for the purchase of securities and 2,939 million yen for the purchase of property, plant,
and equipment, while there were proceeds from sales of securities of 6,999 million yen.
<Cash flows from financing activities>
Due mainly to 1,136 million yen for cash dividends paid, financing activities used net cash of 1,214 million yen (net cashused of 3,319 million yen in 2019).
Reference: Cash flow indicators
Fiscal years ended
Capital adequacy ratio
Capital adequacy ratio based onmarket prices
Interest-bearing debt to cash flow
ratio
Interest coverage ratio

December 31,
2016
63.6

December 31,
2017
65.1

December 31,
2018
65.5

December 31,
2019
66.0

December 31,
2020
71.4

67.1

87.2

69.1

84.7

64.3

0.0

0.0

0.1

0.0

0.1

7,883.0

8,274.9833.2

2,257.9

2,572.9

Notes:
1. Cash flow indices are calculated as follows using consolidated figures:
Capital adequacy ratio: Owner’s equity/Total assets
Capital adequacy ratio based on market prices: Market capitalization/Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt/Operating cash flows
Interest coverage ratio: Operating cash flows/Interest payments
2. Market capitalization is calculated by multiplying the closing share price at the end of the period by the number of issued andoutstanding shares at the end of the fiscal year, net of treasury shares.
3. Interest-bearing debt includes all liabilities on the consolidated balance sheet incurring interest.
4. Operating cash flows and interest payments, respectively, are taken from “Net cash provided by (used in) operating activities” and“Interest expenses paid” on the consolidated statement of cash flows.

(4)

OutlookJapan’s economy is expected to recover in 2021, but only moderately. Amid ongoing concerns over COVID-19, household
and corporate anxiety is expected to remain significant. In the markets in which The Pack is active, starting in the second
half of 2021, depending on the scope of infections, we expect the timely and widespread distribution of effective vaccines
to restore normal economic activity. While prospects remain uncertain, we anticipate improvements in the overall economy.
We expect consumers to continue remaining homebound, boosting e-commerce spending and sales of related supplies.
In this management environment, under the slogan of its Medium-Term Management Plan, (“Management Focused on
Environmental Responsiveness”), The Pack Group has established a five-pronged growth strategy: 1) Initiatives related tothe shift to paper; 2) promoting sales growth for food products, pharmaceuticals, cosmetics, and the e-commerce sector; 3)- 3 -The Pack Corporation (3950) Financial Report for Fiscal Year 2020

strengthening sales of folding paper cartons; 4) expanding business domains; 5) strengthening productivity and promoting
workstyle reforms. The Group will work to strengthen customer satisfaction and increase earnings as a company offering
total packaging solutions.
2. Basic Approach to Selecting Accounting Standards
The Pack Group will continue to prepare consolidated financial statements based on Japanese accounting standards. This
will allow comparisons to previous years and to financial data for other companies. We will take appropriate action withregard to the application of International Financial Reporting Standards (IFRS), accounting for the relevant factors in playin Japan and other countries.

- 4 -The Pack Corporation (3950) Financial Report for Fiscal Year 2020

3. Consolidated Financial Statement and Notes(1)

Consolidated Balance Sheet
Previous fiscal year
(As of December 31, 2019)(Million yen)
Current fiscal year
(As of December 31, 2020)

Cash and deposits

14,317

13,234

Notes and accounts receivable-trade

24,717

20,731

Securities

10,0009,099

Merchandise and finished goods

AssetsCurrent assets

5,675

4,958

Work in process

931

763

Raw materials and supplies

887

830

Other

501

555

Allowance for doubtful accounts

(13)

(13)

57,01750,160

Buildings and structures, net

6,523

6,284

Machinery, equipment, and vehicles, net

5,468

7,163

164

181

8,397

8,302

226

616

20,781

22,547

169

190

Investment securities

8,842

9,104

Deferred tax assets

774

583

Other

911

1,022

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

Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets

Allowance for doubtful accounts

(50)

(53)

Total investments and other assets

10,47810,65731,42933,39588,446

83,556

Total non-current assets
Total assets- 5 -The Pack Corporation (3950) Financial Report for Fiscal Year 2020

Previous fiscal year
(As of December 31, 2019)(Million yen)
Current fiscal year
(As of December 31, 2020)

Notes and accounts payable-trade

15,005

11,183

Electronically recorded obligations-operating

5,763

5,330

Current portion of long-term loans payable

48

30

Liabilities
Current liabilities

Income taxes payable

1,055

55

Provision for bonuses

283

230

Provision for bonuses for directors (and other officers)

43

18

Other

3,449

3,506

Total current liabilities

25,64820,356

Non-current liabilities
Long-term loans payable

30-

Deferred tax liabilities

504

485

3,648

2,758

118

214

4,302

3,459

29,951

23,816

Capital stock

2,553

2,553

Capital surplus

3,164

3,164

Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Retained earnings

54,60755,860Treasury shares(2,765)(2,717)

Total shareholders’ equity

57,56058,861

1,462

987

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

00Foreign currency translation adjustment

(283)

(310)

Remeasurements of defined benefit plans

(367)

112

Total accumulated other comprehensive income

811

790

Share acquisition rights

93

65

Non-controlling interests

29

22

58,49559,73988,446

83,556

Total net assets
Total liabilities and net assets- 6 -The Pack Corporation (3950) Financial Report for Fiscal Year 2020

(2)

Consolidated Statement of Income and Consolidated Statement of Comprehensive Income

Consolidated Statement of Income(Million yen)
Current fiscal year
(from January 1, 2020
to December 31, 2020)

Previous fiscal year
(from January 1, 2019
to December 31, 2019)
Net sales

95,50278,445

Cost of sales

72,38160,130Gross profit

23,121

18,314

Selling, general and administrative expenses

16,27015,039Operating profit

6,850

3,275

Interest income

107

100

Dividend income

122

114

Rent income

54

54

Foreign exchange gains

31

50

Other

66

56

Total non-operating income

382

376

Interest expenses

2

1

Cost of lease revenue

10

9

Sales discounts

54Compensation for damages

011

Loss on insurance cancellation

2

11

Other

12

6

Non-operating income

Non-operating expenses

Total non-operating expenses

33

45

7,199

3,606

－

36

Gain on sales of non-current assets

2

25

Insurance income

83-

Total extraordinary income

86

62

Ordinary profit
Extraordinary income
Gain on sales of investment securities

Extraordinary losses
Loss on sales on non-current assets

33

Loss on retirement of non-current assets

28

41

Loss on valuation of investments securities－

55

Demolition cost of non-current assets

190-

Impairment loss

164-

Total extraordinary losses

386

101

Profit before income taxes

6,899

3,566

Income taxes-current

2,120

1,005

Income taxes-deferred

78

172

Total income taxes

2,199

1,177

4,700

2,389

0

(3)

4,700

2,392

ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent- 7 -The Pack Corporation (3950) Financial Report for Fiscal Year 2020

Consolidated Statement of Comprehensive Income(Million yen)
Current fiscal year
(from January 1, 2020
to December 31, 2020)

Previous fiscal year
(from January 1, 2019
to December 31, 2019)
Profit

4,700

2,389

177

(474)

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

0(0)Foreign currency translation adjustment

(35)

(26)

Remeasurements of defined benefit plans, net of tax

(79)

480

Total other comprehensive income

62

(21)

4,763

2,368

4,766

2,371

(2)

(3)

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests- 8 -The Pack Corporation (3950) Financial Report for Fiscal Year 2020

(3)

Consolidated Statement of Changes in Equity

Previous fiscal year (from January 1, 2019 to December 31, 2019)(Million yen)

Shareholders’ equity
Capital stock
Balance at beginning of current
periodChanges in items during period
Dividends of surplus
Profit attributable to ownersof parent
Purchase of treasury shares
Disposal of treasury shares
Additional purchase of sharesof subsidiaries
Net changes in items otherthan shareholders’ equity
Total changes in items during
periodBalance at end of current period

Balance at beginning of current
periodChanges in items during period
Dividends of surplus
Profit attributable to ownersof parent
Purchase of treasury shares
Disposal of treasury shares
Additional purchase of sharesof subsidiaries
Net changes in items otherthan shareholders’ equity
Total changes in items during
periodBalance at end of current period

Balance at beginning of current
periodChanges in items during period
Dividends of surplus
Profit attributable to ownersof parent
Purchase of treasury shares
Disposal of treasury shares
Additional purchase of sharesof subsidiaries
Net changes in items otherthan shareholders’ equity
Total changes in items during
periodBalance at end of current period

Capital surplus

2,553

Retained earnings

3,166

50,871

Treasury shares(723)

Total shareholders’equity55,867

(964)

(964)

4,700

4,700
(2,049)8

0(2)(2,049)
9
(2)
－

－

(2)

3,735

(2,041)

1,692

2,553

3,164

54,607(2,765)57,560

Accumulated other comprehensive income
Foreign currency
Remeasurements oftranslation
defined benefit plansadjustment

Total accumulated
other comprehensive
incomeValuation difference
on available-for-salesecurities

Deferred gains orlosses on hedges

1,282

0

(249)

(287)

745
－
－
－
－
－

179

0

(34)

(79)

65

179

0

(34)

(79)

65

1,462

0

(283)

(367)

811

Share acquisitionrights81

Non-controllinginterests

Total net assets
81

56,775(964)
4,700(2,049)
9
(2)

12

(51)

27

12

(51)

1,719

93

29

58,495- 9 -The Pack Corporation (3950) Financial Report for Fiscal Year 2020

Current fiscal year (from January 1, 2020 to December 31, 2020)(Million yen)

Shareholders' equity
Capital stock
Balance at beginning of current
periodChanges in items during period
Dividends of surplus
Profit attributable to ownersof parent
Purchase of treasury shares
Disposal of treasury shares
Additional purchase of sharesof subsidiaries
Net changes in items otherthan shareholders’ equity
Total changes in items during
periodBalance at end of current period

Balance at beginning of current
periodChanges in items during period
Dividends of surplus
Profit attributable to ownersof parent
Purchase of treasury shares
Disposal of treasury shares
Additional purchase of sharesof subsidiaries
Net changes in items otherthan shareholders’ equity
Total changes in items during
periodBalance at end of current period

Balance at beginning of current
periodChanges in items during period
Dividends of surplus
Profit attributable to ownersof parent
Purchase of treasury shares
Disposal of treasury shares
Additional purchase ofshares of subsidiaries
Net changes in items otherthan shareholders’ equity
Total changes in items during
periodBalance at end of current period

Capital surplus

2,553

Retained earnings

3,164

54,607

Total shareholders’equityTreasury shares(2,765)57,560(1,138)(1,138)

2,392

2,392

(0)

47

(0)

47
(0)
-

-

(0)

1,253

47

1,301

2,553

3,164

55,860(2,717)58,861

Accumulated other comprehensive income
Foreign currency
Deferred gains orRemeasurements oftranslation
losses on hedges
defined benefit plansadjustment

Total accumulated
other comprehensive
incomeValuation difference
on available-for-salesecurities
1,462

0

(283)

(367)

811
-

(474)

(0)

(26)

480

(20)

(474)

(0)

(26)

480

(20)

987

0

(310)

112

790

Share acquisitionrights93

Non-controllinginterests

Total net assets
29

58,495(1,138)
2,392
47
(0)

(28)

(7)

(56)

(28)

(7)

1,244

65

22

59,739- 10 -

The Pack Corporation (3950) Financial Report for Fiscal Year 2020

(4)

Consolidated Statement of Cash Flows(Million yen)Previous fiscal year
(from January 1, 2019
to December 31, 2019)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Demolition cost of non-current assets
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors andother officers
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Proceeds from withdrawal of time deposits
Purchase of securities
Proceeds from sales of securities
Collection of loans receivable
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
Payments for leasehold and guarantee deposits
Other, net
Net cash provided by (used in) investment activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Payments from change in ownership interests in subsidiaries that
do not result in change in scope of consolidation
Purchase of treasury shares
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 11 -

Current fiscal year
(from January 1, 2020
to December 31, 2020)

6,899
1,713
164
190
(28)
2

3,566
1,850
3
(52)

0

(24)

(259)
(230)
2
0
28
(150)
(268)
19
464
8,549
247
(2)
(2,195)
6,599

(199)
(215)
1
(21)
41
(36)
55
3,977
940
(4,258)
(733)
4,895
229
(1)
(1,965)
3,158

64(7,500)4,000
4(1,492)
3
(52)
(160)
1,000
(12)
11
(4,136)(8,099)6,999
6(2,939)147(59)(1,029)47(179)
92(5,013)

(66)
(169)
(966)

(48)
(1,136)(50)(4)(2,049)(17)(3,319)(16)(873)
19,181
18,307(25)(1,214)(9)(3,079)18,307
15,228

The Pack Corporation (3950) Financial Report for Fiscal Year 2020

(5)Notes to Consolidated Financial Statements

Going Concern Assumption
Not applicable
Segment and Other Information
1. Segment overview
The reportable segments of The Pack Group are the smallest units for which separate financial information can beobtained and for which regular examinations are performed by the Board of Directors to determine resource allocationand evaluate operational results.
The Group is engaged primarily in the manufacture and sale of paper bags, folding paper cartons, corrugated boxes, andplastic bags.
Based on the nature of the products, there are two reportable segments: Paper Products and Film Packaging.
The Group’s major products are paper bags, folding paper cartons, corrugated boxes, and printing in the Paper Products
segment and plastic bags and garment bags in the Film Packaging segment.
2. Method to determine net sales, profit or loss, assets, liabilities and other items by reportable segment
Accounting methods used for the reportable segments are generally the same as the methods used for preparation of theconsolidated financial statements.
Profit for reportable segments is stated on an operating profit basis.
3. Information concerning net sales, profit or loss, assets, liabilities and other items by reportable segment
Previous fiscal year (from January 1, 2019 to December 31, 2019)(Million yen)

Reportable segment
Paper
Products

Film
Packaging

Subtotal

Otherbusinesses(Note 1)

Total

Adjustment(Note 2)

Amountposted in the
consolidated
financialstatements(Note 3)

Net sales
Sales to external
60,353
19,66680,01915,483
95,502
95,502
customers
Intersegment sales andtransfers
Total
60,353
19,66680,01915,483
95,502
95,502
Segment profit
5,265
1,042
6,307
1,492
7,800
(949)
6,850
Segment assets
41,605
9,736
51,341
7,292
58,63429,81288,446
Other items
Deprecation
1,345
306
1,651
52
1,703
10
1,713
Increases in property,
plant and equipment
1,294
535
1,830
31
1,861
72
1,933
and intangible assets
Notes:
1. “Other businesses” includes supplies and other goods.
2. The adjustments are as follows:(1) The -949 million yen adjustment to segment profit includes the elimination of intersegment transactions of 12 million yen notallocated to reportable segments and corporate expenses of -961 million yen. Corporate expenses primarily involve the parent
company’s Administrative Department.
(2) The 29,812 million yen adjustment to segment assets represents corporate assets not allocated to reportable segments.
Corporate assets mainly include the parent company’s surplus assets under management (cash and deposits of 10,845 million
yen and securities of 10,000 million yen), long-term investments (investment securities of 8,396 million yen), and the parent
company’s land of 569 million yen.
(3) Adjustments to depreciation and increases in property, plant and equipment and intangible assets are related to the parent
company’s head office assets.
3. Segment profit is adjusted for consistency with the operating profit stated in the consolidated statement of income.

- 12 -

The Pack Corporation (3950) Financial Report for Fiscal Year 2020

Current fiscal year (from January 1, 2020 to December 31, 2020)(Million yen)

Reportable segment
Paper
Products

Film
Packaging

Subtotal

Otherbusinesses(Note 1)

Total

Adjustment(Note 2)

Amountposted intheconsolidated financial
statements(Note 3)

Net sales
Sales to external
51,386
13,48464,87013,57478,44578,445
customers
Intersegment sales andtransfers
Total
51,386
13,48464,87013,57478,44578,445
Segment profit
3,124
511
3,635
748
4,384
(1,109)3,275
Segment assets
40,835
7,965
48,8006,750
55,551
28,00583,556
Other items
Deprecation
1,462
331
1,794
47
1,841
8
1,850
Increases in property,
plant and equipment
3,297
392
3,690
57
3,748
3,748
and intangible assets
Notes:
1. “Other businesses” includes supplies and other goods.
2. The adjustments are as follows:(1) The -1,109 million yen adjustment to segment profit includes the elimination of intersegment transactions of 12 million yen notallocated to reportable segments and corporate expenses of -1,121 million yen. Corporate expenses primarily involve theparent company’s Administrative Department.
(2) The 28,005 million yen adjustment to segment assets represents corporate assets not allocated to reportable segments.
Corporate assets mainly include the parent company’s surplus assets under management (cash and deposits of 9,621 million
yen and securities of 9,099 million yen), long-term investments (investment securities of 8,722 million yen), and the parent
company’s land of 561 million yen.
(3) Adjustments to depreciation and increases in property, plant and equipment and intangible assets are related to the parent
company’s head office assets.
3. Segment profit is adjusted for consistency with the operating profit stated in the consolidated statement of income.

- 13 -

The Pack Corporation (3950) Financial Report for Fiscal Year 2020

Per Share Information(Yen)
Previous fiscal year
(from January 1, 2019
to December 31, 2019)
3,076.27
243.89243.50Net assets per share
Basic earnings per share
Diluted earnings per share(Note)

Current fiscal year
(from January 1, 2020
to December 31, 2020)
3,141.09
126.01125.85

1. The basic assumptions for calculating basic earnings per share and diluted earnings per share are as follows:
Previous fiscal year
(from January 1, 2019
to December 31, 2019)

Basic earnings per share
Profit attributable to owners of parent (million yen)Amounts not available to common shareholders (million yen)
Profit attributable to owners of parent related to common shares(million yen)
Average number of shares outstanding during the period(thousand shares)
Diluted earnings per share
Adjustment to profit attributable to owners of parent(million yen)
Increase in number of common shares (thousand shares)(of which share acquisition rights (thousand shares))
Antidilutive securities excluded from diluted earnings per sharecalculations

Current fiscal year
(from January 1, 2020
to December 31, 2020)

4,700
-

2,392
-

4,700

2,392

19,273

18,986

-

-

31
(31)

24
(24)
-

2. The basic assumptions for calculating net assets per share are as follows:
Item
Total net assets (million yen)
Deduction on total net assets (million yen)(of which share acquisition rights) (million yen)(of which non-controlling interests) (million yen)
Net assets applicable to common shares (million yen)
Number of common shares used in calculation of net assets per
share (thousand shares)

Material Subsequent Events
Not applicable- 14 -

Previous fiscal year
(from January 1, 2019
to December 31, 2019)58,495
123
(93)
(29)
58,371

Current fiscal year
(from January 1, 2020
to December 31, 2020)
59,73987(65)(22)
59,651

18,97418,990