Quarterly Report2023(Third quarter of 72nd term)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.

Contents
Page[Cover page] ............................................................................................................................................................ 2
Part 1. Corporate information .................................................................................................................................. 3
1. Corporate overview ...................................................................................................................................... 3
1. Trends in major management indicators ................................................................................................. 3
2. Lines of business..................................................................................................................................... 3
2. Business overview ........................................................................................................................................ 4
1. Business and other risks.......................................................................................................................... 4
2. Management analysis of financial standing, business results, and cash flow ......................................... 4
3. Major business contracts, etc. ................................................................................................................. 6
3. Information on filing company ..................................................................................................................... 7
1. Information on stock, etc. ....................................................................................................................... 7
2. Directors ................................................................................................................................................. 8
4. Financial information ................................................................................................................................... 9
1. Quarterly Consolidated Financial Statements ....................................................................................... 10
2. Other ..................................................................................................................................................... 18
Part 2. Information concerning guarantor of filing company ................................................................................ 19
Independent Auditor’s Report on Quarterly Review
Confirmation Letter- 1 -[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:November 9, 2023

Quarterly accounting period:

Third quarter of 72nd term (July 1 – September 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 isavailable for public inspection:

THE PACK CORPORATION(9-3 Higashiobase 2-chome, Higashinari-ku, Osaka, Japan)
Tokyo Stock Exchange(2-1 Nihonbashi Kabutocho, Chuo-ku, Tokyo, Japan)- 2 -Part 1. Corporate information
1. Corporate overview
1.

Trends in major management indicators
Term

Third quarter ofconsolidated 71st term
(cumulative)

Third quarter ofconsolidated 72nd term
(cumulative)

71st term

Fiscal period

January 1 –September 30, 2022

January 1 –September 30, 2023

January 1, 2022 –December 31, 2022

Net sales(million yen)

60,481

67,58689,060Ordinary profit(million yen)

3,592

4,727

6,353

Profit attributable to owners ofparent(million yen)

2,250

3,205

4,058

Comprehensive income (loss)(million yen)

2,646

4,379

4,362

Net assets(million yen)

63,65568,47665,371

Total assets(million yen)

87,082

94,107

94,365

Basic earnings per share(yen)

118.43168.46213.55

Diluted earnings per share(yen)

118.33168.34213.38

Capital adequacy ratio

(%)

73.0

72.7

69.2

Term

Third quarter ofconsolidated 71st term
(cumulative)

Third quarter ofconsolidated 72nd term
(cumulative)

Fiscal period

July 1 – September 30,
2022

July 1 – September 30,
2023

43.58

56.30

Basic earnings per share
Note:

2.

(yen)

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

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 third quarter of the consolidated fiscal year under review.
No changes affecting major affiliates emerged.

- 3 -2. Business overview
1.

Business and other risks
During the cumulative period through the third 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 third quarter of the consolidated fiscal year under review, Japan’s
economy moved into the post-COVID era owing to COVID being downgraded to a Category 5 infection, anddemand for face-to-face service industries such as eating out and lodging increased. In addition, the trend
toward recovery in the manufacturing industry has continued, while the economy has been on a gradual
recovery trend with the recovery on inbound tourism and associated demand and wage rises. Stay-at-homedemand saturated, while the prolonged impact of soaring crude oil prices and exchange rate fluctuations led toincreases in prices of daily necessities and materials, leaving future conditions remaining uncertain.
In the United States, the employment environment remains favorable, real wages are rising, and theconsumption of services such as transportation, healthcare, and entertainment is growing. However, monetary
tightening aimed at curbing inflation continues, raising concerns about an economic recession.
In China, exports increased at the beginning of the year as the Zero COVID policy was lifted. However, adecline in the investment in real estate development, including housing, and a slump in exports may slow the
Chinese economy.
Within this context, the Group has adopted “Evolution—Start of purpose-based management and Sustainable
Management” as the slogan for our Medium-Term Management Plan, which aims to achieve consolidated net
sales of 107,000 million 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 cumulative period through the third quarter of the consolidated fiscal year
under review, net sales grew by 11.7% year on year to 67,586 million yen ; operating profit rose 37.5% year
on year to 4,500 million yen; ordinary profit grew 31.6% year on year to 4,727 million yen; and profit
attributable to owners of parent improved 42.4% year on year to 3,205 million yen.
The business performance for each segment is reviewed below.
(i)Paper Products
The paper products segment accounted for 70.7% of consolidated sales during the period under review.
Sales of paper bags, which accounted for 29.1% of consolidated sales, rose alongside growing domestic
consumer spending and continued recovery in tourism demand, with net sales growing 14.5% year on
year to 19,678 million yen.
Sales of folding paper cartons, which accounted for 25.5% of consolidated sales, grew 15.2% year on
year to 17,239 million yen. This was due to strong sales of cartons for takeout/delivery food products andstrong performance in the market for souvenirs, mainly food.

- 4 -Sales of corrugated boxes, which accounted for 13.6% of consolidated sales, grew 3.1% year on year to
9,184 million yen as sales to manufactures and package sales to the e-commerce market remained at thesame level as the previous year.
Printing sales, which accounted for 2.5% of consolidated sales, rose 7.5% year on year to 1,693 million
yen based on firm sales at Keihin Tokushu Printing Corp. and NIKKO PRINT CORPORATION.
Overall, sales in this segment grew 12.1% year on year to 47,796 million yen. Operating profit rose
37.3% year on year to 4,206 million yen.
(ii) Film Packaging
In the film packaging segment, which accounted for 14.7% of consolidated sales during the period underreview, net sales rose 22.3% year on year to 9,926 million yen. This was due to continued strong sales ofdisposable diaper products and flexible film packaging for food products, as well as strong sales to mailorder enterprises and specialty stores, due mainly to recovery in consumer spending and inbound tourism
consumption in association with an increase in the number of foreign visitors to Japan. Operating profit
grew by 44.0% year on year to 456 million yen.
(iii) Other Businesses
Other businesses in the period under review accounted for 14.6% 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 1.5% year on year to 9,864 million yen. Operating profit rose 18.2% year on year
to 741 million yen.
(2) Analysis of Financial Position
Assets totaled 94,107 million yen at the end of the third quarter of the consolidated fiscal year under review,
down 258 million yen from the end of the previous consolidated fiscal year. Major factors included growth of
2,050 million yen in buildings and structures, 1,909 million yen in land, 1,528 million yen in intangible assets,
1,377 million yen in merchandise and finished goods, and declines of 5,219 million yen in notes and accounts
receivable-trade and 2,900 million yen in securities.
Liabilities totaled 25,630 million yen at the end of the third quarter of consolidated fiscal year under review,
down 3,363 million yen from the end of the previous consolidated fiscal year. The primary factors were
declines of 2,260 million yen in notes and accounts payable-trade and 560 million yen in income taxes
payable.
Net assets totaled 68,476 million yen at the end of the third quarter of consolidated fiscal year under review,
up 3,105 million yen from the end of the previous consolidated fiscal year. Key factors included increases of
1,873 million yen in retained earnings and 897 million in valuation difference on available-for-sale securities.
(3) 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 third quarter of the consolidated fiscal period underreview.
(4) Major business and financial issues
No material changes arose with regard to major business or financial issues during the cumulative period
through the third quarter of the consolidated fiscal period under review.
(5) Research and development activities
The total research and development costs recorded during the cumulative period through the third quarter ofthe consolidated fiscal period under review amounted to 288 million yen.
- 5 -(6) Major Facilities
The reconstruction of our head office building, which was in the planning stage at the end of the previous
consolidated fiscal year, was completed in the cumulative period through the third quarter. As a result,buildings and structures increased by 2,305 million 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 third quarter of the consolidated fiscal period under review.

- 6 -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 third quarter
date
association with which(September 30, 2023)(November 9, 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)

July1 –
September 30,
2023-

Increase(decrease) in
capital(million yen)

19,900

Balance ofcapital(million yen)-(5) Major shareholders
Not presented for the third quarter

- 7 -

2,553

Increase(decrease) in
capital reserve(million yen)

Balance ofcapital reserve(million yen)

-

2,643

(6) Voting rights
Voting rights as of the end of the third quarter cannot be presented here because the details of the list ofshareholders cannot be confirmed at this time. Accordingly, the information shown below is from the list ofshareholders as of the most recent basis date (June 30, 2023).
(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(Treasury shares)

Shares with full voting rights(e.g., 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 96 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- 8 -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 third quarter of the consolidated
fiscal period under review (July 1 – September 30, 2023) and the cumulative period through the third quarterof the consolidated period under review (January 1 – September 30, 2023) were subjected to a quarterly
review by Ernst & Young ShinNihon LLC.

- 9 -

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 September 30, 2023)

AssetsCurrent assets
Cash and deposits

16,163

16,496

Notes and accounts receivable-trade*23,886*18,667

Securities

12,5009,600

Merchandise and finished goods

6,015

7,392

Work in process

1,032

1,230

Raw materials and supplies

1,108

1,016

Other

792

1,106

Allowance for doubtful accounts

(14)

(17)

61,48455,492

Buildings and structures, net

6,132

8,183

Machinery, equipment, and vehicles, net

5,641

6,440

348

352

Land

8,539

10,448Construction in progress

3,068

1,412

Total property, plant, and equipment

23,72926,837

1,044

2,572

Investment securities

6,746

7,934

Deferred tax assets

421

202

Other

992

1,121

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

Tools, furniture, and fixtures, net

Intangible assets
Investments and other assets

Allowance for doubtful accounts

(53)

(54)

Total investments and other assets

8,106

9,204

32,881

38,614

94,365

94,107

Total non-current assets
Total assets- 10 -

(Million yen)
Third quarter of current
fiscal year
(as of September30, 2023)

Previous fiscal year
(as of December 31, 2022)
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations-operating
Current portion of long-term loans payable*14,370*12,110*6,689*6,36825

25

Income taxes payable

1,349

788

Provision for bonuses

291

842

Provision for bonuses for directors (and other officers)

45

32

Other

3,283

2,670

Total current liabilities

26,054

22,83834

15

Non-current liabilities
Long-term loans payable
Deferred tax liabilities

431

465

2,294

2,231

178

79

2,939

2,792

28,99425,630Capital stock

2,553

2,553

Capital surplus

3,166

3,156

Retained earnings

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

Total shareholders’ equity

63,71365,645

1,391

2,288

(3)

6

Foreign currency translation adjustment

89

362

Remeasurements of defined benefit plans

134

128

1,611

2,785

46

45

65,371

68,476

94,365

94,107Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

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- 11 -

(2) Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statement of Income
Cumulative period through third 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
Foreign exchange loss
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities
Gain on sales of non-current assets
Government subsidies
Total extraordinary income
Extraordinary losses
Loss on sales on non-current assets
Loss on retirement of non-current assets
Loss on valuation of investment securities
Loss on sales of investment securities
Impairment loss
Loss on reduction of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

Cumulative period through third
quarter of previous fiscal year
(from January 1, 2022
to September 30, 2022)
60,48146,015
14,465

Cumulative period through third
quarter of current fiscal year
(from January 1, 2023
to September 30, 2023)
67,58650,67816,907

2,839
2,826
315
8
364
20
187
284
2,055
2,289
11,192
3,273

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

93
76
36
65
21
44
336

117
76
30
23
247

1
6
8
17
3,592

2
3
8
3
3
20
4,727

0
1
1

0
0
49
49

0
21
23
64
*188
298
3,296
1,133
(86)
1,047
2,248
(1)
2,250

42
49
92
4,684
1,607
(127)
1,479
3,205
3,205

- 12 -

Quarterly Consolidated Statement of Comprehensive Income
Cumulative period through third quarter(Million yen)
Third quarter of previous
fiscal year
(from January 1, 2022
to September 30, 2022)
ProfitThird quarter of current
fiscal year
(from January 1, 2023
to September 30, 2023)
2,248

3,205

6

897

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

15

10

Foreign currency translation adjustment

386

272

Remeasurements of defined benefit plans, net of tax

(11)

(6)

Total other comprehensive income

397

1,173

2,646

4,379

2,647

4,379

(0)

-

Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests- 13 -

[Notes](Additional information)
While the potential for COVID-19 to affect Group performance may continue for the foreseeable future, we
assume that the current recovery trend will continue into the year ending December 31, 2023 and beyond. This
assumption serves as the basis for accounting estimates, including those for impairments of non-current assets andrecoverability of deferred tax assets. The COVID-19 pandemic continues to pose many uncertainties. Futurechanges in the business environment may affect our financial position and operational results.
(Quarterly Consolidated Balance Sheet)* In accounts processing of notes and other transaction documents maturing on the last day of the quarterly
consolidated accounting period, we process settlements of accounts based on the dates of exchange or othertransactions involving the notes.
Since the last day of the third quarter of the consolidated fiscal year under review was a holiday for financial
institutions, notes and other transaction documents maturing on the last day of the next quarterly consolidated
accounting period are included in the balance at the end of the quarterly consolidated accounting period.
Previous consolidated fiscal year
(December 31, 2022)

Third quarter of consolidated
fiscal year under review(September 30, 2023)

Notes receivable

246 million yen

250 million yen

Notes payable

165 million yen

97 million yen

Electronically recorded obligations – operating

187 million yen

207 million yen(Quarterly Consolidated Statement of Comprehensive Income)* Impairment loss
First three quarters of previous fiscal year (from January 1, 2022 to September 30, 2022)
The Group recorded impairment loss on the following asset group during the cumulative period through thethird 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 third 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 three quarters of current fiscal year (from January 1, 2023 to September 30, 2023)
Not applicable- 14 -

(Quarterly Consolidated Statement of Cash Flows)
No Quarterly Consolidated Statement of Cash Flows was prepared for the third quarter. Shown below isdepreciation (including depreciation of intangible assets) during the third quarter.
Cumulative period through third quarter of
Cumulative period through third quarter ofprevious fiscal year
current fiscal year
(from January 1, 2022 to September 30, 2022) (from January 1, 2023 to September 30, 2023)
Depreciation

1,432 million yen

1,540 million yen(Shareholders’ Equity)
Cumulative period through third quarter of previous fiscal year (from January 1, 2022 to September 30, 2022)
1. Cash dividends paid
Resolution

Class of stock

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

Common stock

474

August 5, 2022
annualshareholders’meeting

Common stock

570

2.

Dividend pershare (yen)Basis date

Effective date

Source ofdividends

25.00

December 31,
2021

March 31, 2022

Retainedearnings

30.00

June 30, 2022

September 2,
2022

Retainedearnings

Dividends for which the basis date falls in the cumulative period through the third quarter of the consolidated
fiscal year but for which the effective date postdates the end of the third quarter of the consolidated fiscal year
Not applicable

Cumulative period through third quarter of current fiscal year (from January 1, 2023 to September 30, 2023)
1. Cash dividends paid
Resolution

Class of stock

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

Common stock

665

August 7, 2023
annualshareholders’meeting

Common stock

666

2.

Dividend pershare (yen)Basis date

Effective date

Source ofdividends

35.00

December 31,
2022

March 29, 2023

Retainedearnings

35.00

June 30, 2023

September 4,
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
Not applicable- 15 -

(Segment and Other Information)
Segment information
I.

Cumulative period through third quarter of previous fiscal year (from January 1, 2022 to September 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

17,194-

17,194-

17,194-

17,194

Folding paper cartons

14,967-

14,967-

Corrugated boxes

8,907

-

8,907

-

14,967-

14,967

8,907

-

8,907

Printing

1,575

1,575

-

1,575

-

1,575

-

Film Packaging

-

8,117

8,117

-

8,117

-

8,117

Others

-

-

-

9,719

9,719

-

9,719

42,643

8,117

50,761

9,719

60,481

-

-

-

-

-

42,643

8,117

50,761

9,719

60,481

-

-

-

-

-

42,643

8,117

50,761

9,719

60,481-60,481

3,063

316

3,380

627

4,008

(734)

3,273

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

60,481-60,481--

Notes: 1. “Other” includes supplies and other sundry items.
2. The adjustment amount of −734 million yen to segment profit includes 9 million yen in elimination of intersegment
transactions and −743 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 loss on non-current assets)
Impairment loss was recorded on machinery and equipment in the Paper Products business segment. The
amount of this impairment loss recorded was 188 million yen in the cumulative period through the third
quarter of the consolidated fiscal year under review.

- 16 -

II.

Cumulative period through third quarter of current fiscal year (from January 1, 2023 to September 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

19,678-19,678-19,678-19,678

Folding paper cartons

17,239-17,239-17,239-17,239Corrugated boxes

9,184

-

9,184

-

9,184

-

9,184

Printing

1,693

-

1,693

-

1,693

-

1,693

Film Packaging

-

9,926

9,926

-

9,926

-

9,926

Others

-

-

-

9,864

9,864

-

9,864

47,796

9,926

57,722

9,864

67,586-

67,586

-

-

-

-

-

-

-

47,796

9,926

57,722

9,864

67,586-

67,586

-

-

-

-

-

-

-

Subtotal

47,796

9,926

57,722

9,864

67,586-

67,586

Segment profit

4,206

456

4,662

741

5,404

(903)

4,500

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 −903 million yen to segment profit includes 9 million yen in elimination of intersegment
transactions and −912 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).

- 17 -

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

Item

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

Third quarter of current
fiscal year
(from January 1, 2023
to September 30, 2023)

118.43 yen

168.46 yen

2,250

3,205

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

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

2,250

3,205

Average number of shares outstanding during theperiod (thousand shares)

19,00419,025118.33168.34

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

Increase in number of common shares (thousand
shares)15

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- 18 -

September 4, 2023

Part 2. Information concerning guarantor of filing company
Not applicable- 19 -

Independent Auditor’s Report on Quarterly Review
November 9, 2023
To: The Board of Directors,
THE PACK CORPORATION
Ernst & Young ShinNihon LLC
Osaka OfficeYasuhiro Kamimae, 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 third quarter of the consolidated fiscal period under review (July 1 – September 30,2023) and for the cumulative period through the third quarter of the consolidated period under review (January 1 –September 30, 2023), based on the relevant Consolidated Balance Sheet, Consolidated Statement of Income,Consolidated Statement of Comprehensive Income, and Notes to the Consolidated Financial Statements for the
fiscal year 2023 (January 1 – December 31) 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 September 30, 2023, or in business results for the
cumulative period through the third 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 the 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.

- 20 -

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, as auditors, duly report to the Statutory Auditors and to the Audit and Supervisory Committee on ourcompliance with the rules of professional ethics in Japan regarding independence; on matters that could reasonably
be deemed to affect our independence; on the nature of measures taken to eliminate such impediments, if any; andon the nature 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.

- 21 -

[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:November 9, 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 isavailable for public inspection:

THE PACK CORPORATION(9-3 Higashiobase 2-chome, Higashinari-ku, Osaka, Japan)
Tokyo Stock Exchange(2-1 Nihonbashi Kabutocho, Chuo-ku, Tokyo, Japan)- 22 -

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 third quarter of 72nd term (July 1 – September 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.

- 23 -