Business Results for the Second Quarter of the Year Ending December 31, 2024
(Six Months)[Japan GAAP] (Consolidated)
August 6, 2024

Company:
Stock code:
Representative:
Contact:

Listed on TSE, Prime Market
URL: https://www.thepack.co.jp

The Pack Corporation

3950
Hideaki Yamashita, President & CEO
Ikuo Shimomura, Director, Corporate General Manager
TEL: +81-6-4967-1221
Expected filing date for the six-month period securities report: August 9, 2024
Expected starting date of dividend payment:
September 3, 2024
Supplementary financial documents:
Yes
Results briefing:
Yes (for institutional investors and securities analysts)(Rounded down to million yen)
1. Consolidated business results for the second quarter of the year ending December 31, 2024 (six months)(January 1, 2024 through June 30, 2024)(1)

Consolidated operational results (cumulative)(% change from same period of previous year)

Net sales%

Million yen%

Million yen%

Million yen%

46,617

3.9

3,525

18.4

3,662

16.3

2,999

40.6

44,878

13.3

2,976

45.6

3,147

36.9

2,133

50.0

Six months ended June 30, 2023

Second quarter of year ending December 31, 2024 (six months):
Second quarter of year ended December 31, 2023 (six months):
Basic earnings
per share

3,002 million yen (2.0%)
2,942 million yen (68.7%)

Diluted earnings
per share
Yen

Yen

Six months ended June 30, 2024

157.69157.60Six months ended June 30, 2023

112.16112.08(2)

Profit attributable toowners of parent

Ordinary profit

Million yen

Six months ended June 30, 2024
(Note) Comprehensive income

Operating profit

Consolidated financial position
Total assets

Net assets

Capital adequacy ratio

Million yen

Million yen%

Six months ended June 30, 2024

98,723

72,952

73.9

Year ended December 31, 2023

98,847

71,156

71.9(Reference) Owner’s equity

Six months ended June 30, 2024:
Year ended December 31, 2023:

72,927 million yen
71,111 million yen

2. Dividends
Dividend per share
End of 1Q

End of 2Q

End of 3Q

Yen

Yen

Yen

Yen

Yen

Year ended December 31, 2023

–

35.00

–

55.00

90.00

Year ending December 31, 2024

–

52.00
–

66.00

118.00Year ending December 31, 2024 (forecast)(Note) Revision from most recently announced dividends forecast: None

Year-endTotal

3. Forecast of consolidated results for the year ending December 31, 2024
(January 1, 2024 through December 31, 2024)(Full year %: change from the previous corresponding period)
Net sales

Operating profit

Ordinary profit

Million yen%

Million yen

Full year
101,000 3.4
8,100(Note) Revision from most recently announced forecast of results: None

4.6

8,400

Million yen

%

Basic
Profit attributableearnings per
to owners of parent
share% Million yen

4.2

6,400

%

Yen

13.2

336.27*Notes(1)

Material changes in scope of consolidation during the period: None

(2)

Application of special account processing in preparation of six-month consolidated financial statements: None

(3)

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(4)

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

Number of issued and outstanding
Six months ended
shares at the end of fiscal year
June 30, 2024
(including treasury shares)

19,900,000 sharesYear ended
December 31, 2023

19,900,000 shares

2)

Number of treasury shares at theend of fiscal year

Six months ended
June 30, 2024

938,817 sharesYear ended
December 31, 2023

868,136 shares

3)

Average number of shares
Six months ended(cumulative from the beginning ofJune 30, 2024
the fiscal year)

19,024,573 shares

Six months ended
June 30, 2023

19,023,178 shares* The six-month financial summary is not subject to audits by certified public accountants or auditing firms.
* Explanation regarding appropriate use of business forecasts and other special instructions
Forward-looking statements regarding future performance are based on assumptions regarding various factors affecting
business performance and information available to the Company’s management as of the date the materials wereprepared. Actual results may differ significantly from forecasts.
Also see “Explanation Regarding Consolidated Business Forecasts and Other Forward-Looking Statements” on p. 3 of
the Attachments concerning forward-looking statements.

The Pack Corporation (3950) Financial Report for the Second Quarter of 2024 (six months)

Contents of Attachments
1. Qualitative Information Concerning Business Results for the Six-Month Period Under Review(1) Description of Operational Results(2) Description of Financial Position(3) Explanation Regarding Consolidated Business Forecasts and Other Forward-Looking Statements

2
2
3
3

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

4
4
6
8
9
9
9
9
9
10

Six-month Consolidated Financial Statements and Notes
Six-month Consolidated Balance Sheet
Six-month Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Six-month Consolidated Statement of Cash Flows
Notes to Six-month Consolidated Financial Statements(Going Concern Assumption)(Significant Changes in Shareholders’ Equity)(Six-month Consolidated Balance Sheet)(Six-month Consolidated Statement of Cash Flows)(Segment and Other Information)- 1 -The Pack Corporation (3950) Financial Report for the Second Quarter of 2024 (six months)

1. Qualitative Information Concerning Business Results for the Six-Month Period Under Review(1)

Description of Operational Results

In the six-month period under review, Japan’s economy appeared set to depart from deflationary patterns due to progress inpassing on higher costs to buyers, supported by robust capital investments, strong spending by foreign visitors, and an overall
recovery in consumption attributable to rising wages and fiscal policies. Nevertheless, due to soaring energy costs, the risingcost of imported goods driven by yen devaluation, and an extended period during which prices outstripped wage growth,households became more cautious about spending. Prospects for the economy remain uncertain.
In the United States, an environment supporting consumer spending continued, including strong consumer finances due topositive employment and income conditions, and high stock prices and yields. Thus, the US economy remained firm on theback of strong consumer spending.
In China, the slump in the real estate market continued. Despite the presentation of economic stimulus policies to halt thevicious cycle, consumer spending remained sluggish against a backdrop of discouraging employment and income conditions
and declining consumer confidence.
Under these circumstances, the Group adopted “Evolution—Start of purpose-based management and Sustainable
Management—” as the slogan for our Medium-Term Management Plan. This plan seeks to achieve consolidated net salesof 107,000 million yen and operating income of 8,300 million yen for the fiscal year ending December 31, 2025. Toward
this goal, group companies worked as a team to increase earnings in various ways, including by venturing into new markets,making significant capital expenditures, and improving quality management.
Due to these efforts, during the six-month period under review, net sales grew 3.9% to 46,617 million yen; operating profit
grew 18.4% to 3,525 million yen; ordinary profit grew 16.3% to 3,662 million yen; and profit attributable to owners of parent
grew 40.6% to 2,999 million yen.
The business performance for each segment is reviewed below.
(Paper Products)
The paper products segment accounted for 71.5% of consolidated net sales for the six-month period under review. Thanks
in part to a gradual recovery in consumer spending and booming tourism demand, including inbound tourism, sales of paperbags, which accounted for 30.6% of consolidated sales, grew 9.9% year on year to 14,279 million yen.
Sales of paper cartons, which accounted for 26.0% of consolidated sales, grew 7.6% to 12,120 million yen. Contributing
factors included strong sales to the souvenirs market, chiefly in cartons for food products, as well as sales of cartons fortakeout/delivery food products.
Despite robust sales to the manufacturing sector, following on from last year, sales of corrugated boxes, which accounted
for 12.7% of consolidated sales, fell by 6.6% to 5,926 million yen due to revised package specifications for the e-commerce
sector.
Printing sales, which accounted for 2.2% of consolidated sales, fell 12.3% to 995 million yen due to reduced hours of
production as facilities were upgraded or replaced.
Overall, sales in this segment grew 5.0% to 33,322 million yen. Operating profit rose 16.5% to 3,164 million yen.
(Film Packaging)
The film packaging segment accounted for 13.6% of consolidated sales for the six-month period under review. Segment
sales were down 4.6% year on year to 6,347 million yen due to lower sales of products to the e-commerce segment and to
specialty retail stores with the migration from film to paper packaging. Improvements in production efficiency helped soften
this decline. Operating profit was up 39.7% to 403 million yen.
- 2 -The Pack Corporation (3950) Financial Report for the Second Quarter of 2024 (six months)(Other Businesses)
Other businesses accounted for 14.9% of consolidated sales for the six-month period under review. Strong sales of sewn
products and nonwoven bags to specialty retail stores helped boost sales in this segment by 7.1% to 6,947 million yen.
Operating profit rose 7.0% to 519 million yen.
(2)

Description of Financial Position(i)

Assets, liabilities, and net assets

Total assets at the end of the six-month period under review were 98,723 million yen, down 124 million yen from the endof the previous fiscal year. Major factors included a decline of 5,569 million yen in notes and accounts receivable-trade,
offset by increases of 3,898 million yen in cash and deposits and 888 million yen in machinery, equipment, and vehicles.
Liabilities fell 1,919 million yen to 25,771 million yen. The primary factors were declines of 2,190 million yen in notes andaccounts payable-trade and 589 million yen in electronically recorded obligations-operating.
Net assets grew by 1,795 million yen to 72,952 million yen. Key factors included an increase of 2,083 million yen in retained
earnings, offset by a decline of 364 million yen in valuation differences on available-for-sale securities.
(ii)

Cash flow

The balance of cash and cash equivalents at the end of the six-month period under review was up 25.3%, or 4,491 million
yen year on year, to 22,210 million yen.
(Cash flow from operating activities)
Cash flow from operating activities in the six-month period under review stood at 6,301 million yen (compared to cash flowof 5,066 million yen in the preceding six-month period). Factors contributing to this figure include the recording of
4,381 million yen in profit before income taxes, a decrease of 5,703 million yen in notes and accounts receivable-trade, anddepreciation of 1,006 million yen. These factors more than offset the decrease of 2,846 million yen in notes and accounts
payable-trade and increase of 444 million yen in inventories.
(Cash flow used in investment activities)
Cash flow used in investment activities in the six-month period under review stood at 97 million yen (compared to cash flowused of 5,413 million yen in the preceding six-month period). This figure reflects various factors, including 3,500 million
yen used in purchase of securities, 1,958 million yen used in purchase of property, plant and equipment, and 635 million yen
used in purchase of intangible assets, despite 5,600 million yen in proceeds from sales of securities.
(Cash flow used in financing activities)
Cash flow used in financing activities in the six-month period under review stood at 2,084 million yen (compared to net cashused of 703 million yen in the preceding six-month period). This figure reflects various factors, including cash dividends
paid of 1,046 million yen, an increase of 668 million yen in deposits for purchase of treasury shares, and purchase of treasury
shares of 334 million yen.
(3)

Explanation Regarding Consolidated Business Forecasts and Other Forward-Looking Statements

Consolidated business forecasts remain unchanged from the information announced February 9, 2024.

- 3 -The Pack Corporation (3950) Financial Report for the Second Quarter of 2024 (six months)

2. Six-month Consolidated Financial Statements and Notes(1)

Six-month Consolidated Balance Sheet(Million yen)Previous fiscal year
(as of December 31, 2023)

Six-month period under review(as of June 30, 2024)

AssetsCurrent assets
Cash and deposits

16,322

20,221

Notes and accounts receivable-trade24,65419,084

Securities

8,100

6,499

Merchandise and finished goods

7,038

7,484

Work in process

1,058

1,147

Raw materials and supplies

981

907

Other

936

1,856

Allowance for doubtful accounts

(11)

(15)

59,08057,186

Buildings and structures, net

8,154

8,014

Machinery, equipment, and vehicles, net

6,443

7,332

347

321

Land

10,823

10,823

Construction in progress

1,632

1,995

Total property, plant, and equipment

27,401

28,488

2,679

3,290

Investment securities

8,127

8,014

Retirement benefit asset

385

438

Deferred tax assets

106

103

Other

1,116

1,206

Allowance for doubtful accounts

(51)

(4)

Total investments and other assets

9,685

9,758

39,766

41,537

98,847

98,723

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

Tools, furniture, and fixtures, net

Intangible assets
Investments and other assets

Total non-current assets
Total assets- 4 -The Pack Corporation (3950) Financial Report for the Second Quarter of 2024 (six months)(Million yen)Previous fiscal year
(as of December 31, 2023)

Six-month period under review(as of June 30, 2024)

Liabilities
Current liabilities
Notes and accounts payable-trade

13,89011,700Electronically recorded obligations-operating

7,264

6,675

Current portion of long-term loans payable

25

22

Income taxes payable

1,397

1,481

Provision for bonuses

322

320

Provision for bonuses for directors (and other officers)

52

26

Other

3,652

4,557

Total current liabilities

26,60524,782Long-term loans payable

9–

Retirement benefit liability

343

334

Deferred tax liabilities

664

609

Other

67

43

1,085

988

27,691

25,771

Capital stock

2,553

2,553

Capital surplus

3,156

3,161

Retained earnings

64,97567,059Treasury shares(2,593)(2,868)

Total shareholders’ equity

68,092

69,906

2,417

2,052

Deferred gains or losses on hedges(2)

1Foreign currency translation adjustment

235

611

Remeasurements of defined benefit plans

369

355

3,018

3,020

45

25

71,156

72,952

98,847

98,723

Non-current liabilities

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Total accumulated other comprehensive income
Share acquisition rights
Total net assets
Total liabilities and net assets- 5 -The Pack Corporation (3950) Financial Report for the Second Quarter of 2024 (six months)(2)

Six-month Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Six-month Consolidated Statement of Income
Six-month period

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
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Cost of lease revenue
Loss on investment limited partnership
Foreign exchange losses
Commission for purchase of treasury shares
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 reduction of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit attributable to owners of parent

Preceding six-month period(from January 1, 2023
to June 30, 2023)
44,87833,587
11,291(Million yen)Six-month period under review(from January 1, 2024
to June 30, 2024)
46,617
34,71911,898

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

1,948
2,258
252
88
172
25
99
188
1,460
1,878
8,373
3,525

74
57
20
14
18
185

60
69
19
–
11
160

1
2
6
–
–
4
14
3,147

1
2
–
13
2
3
23
3,662

–
–
49
49

681
56
–
737

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

10
7
–
18
4,381
1,290
91
1,381
2,999
2,999

- 6 -

The Pack Corporation (3950) Financial Report for the Second Quarter of 2024 (six months)

Six-month Consolidated Statement of Income
Six-month period(Million yen)Six-month period under review(from January 1, 2024
to June 30, 2024)

Preceding six-month period(from January 1, 2023
to June 30, 2023)
Profit

2,133

2,999

623

(364)

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

6

3

183

376

Remeasurements of defined benefit plans, net of tax

(4)

(13)

Total other comprehensive income

808

2

2,942

3,002

2,942

3,002

Foreign currency translation adjustment

Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners of parent- 7 -The Pack Corporation (3950) Financial Report for the Second Quarter of 2024 (six months)(3)

Six-month Consolidated Statement of Cash Flows(Million yen)Six-month period under review(from January 1, 2024
to June 30, 2024)

Preceding six-month period(from January 1, 2023
to June 30, 2023)
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors
and other officers
Increase (decrease) in retirement benefit liability
Decrease (increase) in net defined benefit asset
Interest and dividend income
Interest expenses
Loss (gain) on investment limited partnership
Loss (gain) on sales of non-current assets
Government subsidies
Loss on retirement of non-current assets
Loss (gain) on sales of investment securities
Loss on reduction of non-current assets
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 used in investment activities
Purchase of securities
Proceeds from sales of securities
Purchase of property, plant, and equipment
Proceeds from sales of property, plant, and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Collection of loans receivable
Payments for leasehold and guarantee deposits
Proceeds from government subsidies
Other, net
Net cash provided by (used in) investment activities
Cash flows used in financing activities
Repayments of long-term loans payable
Cash dividends paid
Purchase of treasury shares
Decrease (increase) in deposits for purchase of treasury
sharesOther, 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

- 8 -

3,129
1,014
1
42

4,381
1,006
(42)
(2)

(23)

(26)

(49)
–
(131)
1
6
–
(49)
18
–
49
5,566
(738)
(2,857)
162
6,143
132
(1)
(1,208)
5,066

(29)
(53)
(129)
1
(0)
(45)
–
7
(681)
–
5,703
(444)
(2,846)
584
7,383
137
(1)
(1,218)6,301(6,000)6,500(4,351)–(1,465)
(18)
6
28
(200)
49
36
(5,413)(3,500)5,600(1,958)
88
(635)
(519)
802
35
(16)
–
8
(97)

(12)
(664)
(0)

(12)
(1,046)
(334)

–

(668)

(26)
(703)
117
(933)
18,653
17,719(22)(2,084)278
4,398
17,812
22,210

The Pack Corporation (3950) Financial Report for the Second Quarter of 2024 (six months)(4)

Notes to Six-month Consolidated Financial Statements(Going Concern Assumption)
Not applicable(Significant Changes in Shareholders’ Equity)
The Company purchased 89,400 shares of the Company as treasury shares in accordance with a resolution passed by
the Board of Directors on February 9, 2024. As a result, the number of treasury shares increased by 331 million yen
during the six-month period under review to 2,868 million yen.
(Six-month Consolidated Balance Sheet)* Notes whose maturity date is the last day of each six-month period are settled on the settlement date for notes.
Since the last day of the six-month period under review was a bank holiday, the balances of notes as of the end of
the six-month period under review include the following notes whose maturity date was the last day of that period.
Previous fiscal year
(as of December 31, 2023)

Six-month period underreview(as of June 30, 2024)

Notes receivable-trade

257

249

Notes payable-trade

103

80

Electronically recorded obligations-operating

226

190

(Six-month Consolidated Statement of Cash Flows)* Relationship between the ending balance of cash and cash equivalents and amounts of accounts shown on the sixmonth consolidated balance sheet:Preceding six-month period(from January 1, 2023 toJune 30, 2023)

Six-month period underreview(from January 1, 2024 toJune 30, 2024)

16,72920,221Time deposits with deposit terms of more than threemonths(10)(10)

Securities redeemable within three months from the dateof purchase

1,000

1,999

Cash and cash equivalents

17,71922,210Cash and deposits- 9 -The Pack Corporation (3950) Financial Report for the Second Quarter of 2024 (six months)(Segment and Other Information)[Segment information]
I. Preceding six-month period (from January 1, 2023 to June 30, 2023)
1. Net sales and profit or loss and breakdown of profit by reportable segment(Million yen)
Reportable segment
Paper
Products

Film
Packaging

Other
businesses(Note 1)

Subtotal

Amount posted in
the Six-month
Adjustment
Consolidated(Note 2)
Statement of Income(Note 3)Total

Net sales
Paper bags

12,993–

12,993–

12,993–

12,993Paper cartons

11,262–

11,262–

11,262–

11,262

Corrugated boxes

6,343

–

6,343

–

6,343

–

6,343

Printing

1,135

–

1,135

–

1,135

–

1,135

Film Packaging

–

6,654

6,654

–

6,654

–

6,654

Others

–

–

–

6,489

6,489

–

6,489

Revenue fromcontracts withcustomers

31,734

6,654

38,3896,489

44,878–44,878Other revenue

–

–

–

–

–

–

–

31,734

6,654

38,3896,489

44,878–44,878

–

–

–

–

–

–

-

Subtotal

31,734

6,654

38,3896,489

44,878–44,878Segment profit

2,715

288

3,004

485

3,490

(513)

2,976

Sales to externalcustomers
Intersegment sales
and transfers

Notes:

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

- 10 -

The Pack Corporation (3950) Financial Report for the Second Quarter of 2024 (six months)

II. Six-month period under review (from January 1, 2024 to June 30, 2024)
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

Amount posted in
the Six-month
Adjustment
Consolidated(Note 2)
Statement of Income(Note 3)Total

Net sales
Paper bags

14,279–14,279–14,279–14,279Paper cartons

12,120–12,120–12,120–12,120Corrugated boxes

5,926

–

5,926

–

5,926

–

5,926

995

–

995

–

995

–

995

Film Packaging

–

6,347

6,347

–

6,347

–

6,347

Others

–

–

–

6,947

6,947

–

6,947

Revenue fromcontracts withcustomers

33,322

6,347

39,6696,947

46,617–

46,617

Other revenue

–

–

–

–

–

–

-

33,322

6,347

39,6696,947

46,617–

46,617

–

–

–

–

–

–

–

Subtotal

33,322

6,347

39,6696,947

46,617–

46,617

Segment profit

3,164

403

3,568

519

4,088

(562)

3,525

Printing

Sales to externalcustomers
Intersegment sales
and transfers

Notes:

1. “Others” includes supplies and other goods.
2. The adjustment amount of −562 million yen for segment profit includes 6 million yen in elimination of intersegment
transactions and −569 million yen in Companywide costs, which are not allocated to individual reportable segments.
Companywide costs consist mainly of costs related to parent-company administrative sections.
3. Segment profit is adjusted against operating profit on the Six-month Consolidated Statement of Income.

- 11 -