Japan Pulp and Paper : Consolidated Financial Results for the Six Months Ended September 30, 2021

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Six Months Ended September 30, 2021

[Japanese GAAP]

November 10, 2021

Company name: Japan Pulp & Paper Co., Ltd.

Stock exchange listing: Tokyo

Code number: 8032
URL: https://www.kamipa.co.jp/eng/
Representative: Akihiko Watanabe	President
Contact: Kenichiro Fujii	Executive Officer, Finance & Administration Division

Phone: [phone]

Scheduled date of filing quarterly securities report: November 12, 2021

Scheduled date of commencing dividend payments: December 01, 2021

Availability of supplementary briefing material on quarterly financial results: Yes (available in Japanese only)

Schedule of quarterly financial results briefing session: Yes (for institutional investors and analysts / available in Japanese only)

						(Amounts are rounded to the nearest million yen)
1. Consolidated Financial Results for the Six Months Ended September 30, 2021 (April 01, 2021 to September 30, 2021)
(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
	Revenue		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
Six months ended	Million yen		%	Million yen	%	Million yen	%	Million yen		%
September 30, 2021	208,029		-	6,316	73.4	6,661	82.1	8,454		418.6
September 30, 2020	224,787		(15.0)	3,643	(34.3)	3,657	(29.0)	1,630		(51.3)

(Note) Comprehensive income:	Six months ended September 30, 2021:
	Six months ended September 30, 2020:

¥	8,950 million	[	-%]
¥	461 million	[	(53.1) %]

	Basic earnings	Diluted earnings per
	per share	share
Six months ended	Yen	Yen
September 30, 2021	617.36	615.88
September 30, 2020	119.23	118.85

(Notes)1. From the beginning of the year ending March 31, 2022, "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29) etc. have been adopted. Therefore, the rate of increase and decrease concerning sales compared to the previous year is not stated. In addition, the account name has been changed from "Net sales" to "Revenue".

2. The rate of increase and decrease is shown as (-) for comprehensive income in the six months ended September 30, 2021 because the rate exceeds 1,000%.

(2) Consolidated Financial Position

	Total assets	Net assets	Capital adequacy ratio
As of	Million yen		Million yen	%
September 30, 2021	325,554		98,108	28.0
March 31, 2021	321,986		89,872	25.9
(Reference) Equity: As of	September 30, 2021:	¥	91,169 million
As of	March 31, 2021:	¥	83,451 million

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2. Dividends

Annual dividends

1st

2nd

3rd

Year-end

Total

quarter-end

quarter-end

quarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2021

-

55.00

-

55.00

110.00

Fiscal year ending March 31, 2022

-

55.00

Fiscal year ending March 31, 2022

-

55.00

110.00

(Forecast)

(Note) Revision to the forecast for dividends announced most recently:

No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022(April 01, 2021 to March 31, 2022)

(% indicates changes from the previous corresponding period.)

Operating profit

Ordinary profit

Profit attributable to

Basic earnings per share

owners of parent

Million yen

%

Million yen

%

Million yen

%

Yen

Full year

9,800

10.2

9,300

3.9

9,400

157.6

687.54

(Notes) 1. Revision to the financial results forecast announced most recently: No

2. From the beginning of the year ending March 31, 2022, "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29) etc. have been adopted. Financial forecasts above reflect the effect of such new standards.

* Notes:
(1) Changes in significant subsidiaries during the six months ended September 30, 2021
(changes in specified subsidiaries resulting in changes in scope of consolidation):	No
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	No

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

September 30, 2021:	15,021,551	shares
March 31, 2021:	15,021,551	shares
2) Total number of treasury shares at the end of the period:
September 30, 2021:	1,318,520	shares
March 31, 2021:	1,349,600	shares
3) Average number of shares during the period:
Six months ended September 30, 2021:	13,693,466	shares
Six months ended September 30, 2020:	13,671,699	shares

*This report is not subject to quarterly reviews by certified public accountants or auditing firms.

• Explanation of the proper use of financial results forecast and other notes. (Note Concerning Forward-Looking Statements)
  The forecasts and other forward-looking statements in this report are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. Actual business and other results may significantly differ from these forecasts due to various factors.

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Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

									(Million yen)
								As of March 31,2021	As of September 30,2021
Assets
	Current assets
		Cash and deposits	11,643	11,011
		Notes and accounts receivable - trade	111,389	113,310
		Inventories	34,778	38,746
		Other	3,908	3,991
		Allowance for doubtful accounts	(1,308)	(1,328)
		Total current assets	160,410	165,730
	Non-current assets
		Property, plant and equipment
			Buildings and structures, net	46,933	45,888
			Land	32,420	32,279
			Other, net	32,331	31,774
			Total property, plant and equipment	111,683	109,941
		Intangible assets
			Goodwill	4,869	4,234
			Other	2,113	2,098
			Total intangible assets	6,982	6,332
		Investments and other assets
			Investment securities	36,290	36,667
			Retirement benefit asset	6	217
			Other	8,605	8,792
			Allowance for doubtful accounts	(2,090)	(2,215)
			Total investments and other assets	42,811	43,461
		Total non-current assets	161,476	159,734
	Deferred assets	100	91
	Total assets	321,986	325,554

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								(Million yen)
							As of March 31,2021	As of September 30,2021
Liabilities
	Current liabilities
		Notes and accounts payable - trade	85,523	87,490
		Short-term borrowings	36,324	36,604
		Current portion of long-term borrowings	5,288	5,151
		Commercial papers	9,000	6,500
		Current portion of bonds payable	23	23
		Income taxes payable	1,231	1,998
		Provisions	2,383	2,270
		Other	11,907	10,740
		Total current liabilities	151,679	150,775
	Non-current liabilities
		Bonds payable	30,011	30,000
		Long-term borrowings	33,412	30,904
		Provisions	1,189	1,179
		Retirement benefit liability	4,237	1,322
		Other	11,585	13,268
		Total non-current liabilities	80,435	76,672
	Total liabilities	232,114	227,446
Net assets
	Shareholders' equity
		Share capital	16,649	16,649
		Capital surplus	7,280	7,236
		Retained earnings	55,661	63,285
		Treasury shares	(5,123)	(5,000)
		Total shareholders' equity	74,467	82,170
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	8,702	7,746
		securities
		Deferred gains or losses on hedges	(7)	(8)
		Foreign currency translation adjustment	(107)	1,272
		Remeasurements of defined benefit plans	397	(11)
		Total accumulated other comprehensive income	8,985	8,999
	Share acquisition rights	117	83
	Non-controlling interests	6,304	6,856
	Total net assets	89,872	98,108
Total liabilities and net assets	321,986	325,554

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Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the six months)

							(Million yen)
						For the six months	For the six months
						ended September 30,2020	ended September 30,2021
Revenue	224,787	208,029
Cost of sales	194,684	173,562
Gross profit	30,102	34,467
Selling, general and administrative expenses	26,460	28,151
Operating profit	3,643	6,316
Non-operating income
	Interest income	143	162
	Dividend income	415	387
	Share of profit of entities accounted for using equity	107	271
	method
	Other	424	453
	Total non-operating income	1,089	1,273
Non-operating expenses
	Interest expenses	956	824
	Other	118	103
	Total non-operating expenses	1,074	928
Ordinary profit	3,657	6,661
Extraordinary income
	Gain on revision of retirement benefit plan	-	5,969
	Gain on sale of non-current assets	19	421
	Gain on sale of investment securities	128	338
	Other	-	4
	Total extraordinary income	147	6,732
Extraordinary losses
	Loss on disposal of non-current assets	45	67
	Sublease loss	-	64
	Compensation for claims	147	-
	Waste disposal expenses	133	-
	Business restructuring expenses	124	-
	Loss on sale of investment securities	5	-
	Other	4	23
	Total extraordinary losses	458	154
Profit before income taxes	3,346	13,240
Income taxes - current	1,396	2,168
Income taxes - deferred	(108)	2,231
Total income taxes	1,287	4,399
Profit	2,059	8,840
Profit attributable to non-controlling interests	429	386
Profit attributable to owners of parent	1,630	8,454

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