Japan Pulp and Paper : Consolidated Financial Results for the Three Months Ended June 30, 2022

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 Three Months Ended June 30, 2022

[Japanese GAAP]

										August 09, 2022
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: August 12, 2022
Scheduled date of commencing dividend payments: -
Availability of supplementary briefing material on quarterly financial results: No
Schedule of quarterly financial results briefing session: No
							(Amounts are rounded to the nearest million yen)
1. Consolidated Financial Results for the Three Months Ended June 30, 2022 (April 01, 2022 to June 30, 2022)
(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
		Revenue	Operating profit		Ordinary profit	Profit attributable to
			owners of parent
Three months ended		Million yen	%	Million yen	%		Million yen		%	Million yen	%
June 30, 2022		125,751	23.0	4,044	31.5		4,479		33.3	13,888	114.2
June 30, 2021		102,230	-	3,075	60.6		3,360		61.4	6,484	516.4

(Note) Comprehensive income:	Three months ended June 30, 2022:
	Three months ended June 30, 2021:

¥	14,900 million	[	102.2%]
¥	7,368 million	[	-%]

	Basic earnings	Diluted earnings per
	per share	share
Three months ended	Yen	Yen
June 30, 2022	1,012.63	1,010.57
June 30, 2021	473.76	472.55

(Note) 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 for Three months ended June 30, 2021 is not stated.

(2) Consolidated Financial Position

	Total assets	Net assets	Capital adequacy ratio
As of	Million yen		Million yen	%
June 30, 2022	354,799		114,437	30.1
March 31, 2022	338,939		100,317	27.4
(Reference) Equity: As of	June 30, 2022:	¥	106,670 million
As of	March 31, 2022:	¥	92,821 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, 2022

-

55.00

-

60.00

115.00

Fiscal year ending March 31, 2023

-

Fiscal year ending March 31, 2023

60.00

-

60.00

120.00

(Forecast)

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

No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023(April 01, 2022 to March 31, 2023)

(% 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

13,500

(4.0)

14,000

(7.0)

19,500

69.6

1,423.12

(Note) Revision to the financial results forecast announced most recently:

No

* Notes:

(1) Changes in significant subsidiaries during the three months ended June 30, 2022

(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: No
   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):

June 30, 2022:	15,021,551	shares
March 31, 2022:	15,021,551	shares
2) Total number of treasury shares at the end of the period:
June 30, 2022:	1,302,615	shares
March 31, 2022:	1,319,240	shares
3) Average number of shares during the period:
Three months ended June 30, 2022:	13,714,662	shares
Three months ended June 30, 2021:	13,686,438	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.

Quarterly Consolidated Financial Statements

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Quarterly Consolidated Balance Sheets

									(Million yen)
								As of March 31,2022	As of June 30,2022
Assets
	Current assets
		Cash and deposits	13,009	41,809
		Notes and accounts receivable - trade	122,330	127,542
		Inventories	45,360	47,011
		Other	3,930	3,710
		Allowance for doubtful accounts	(1,554)	(1,726)
		Total current assets	183,075	218,346
	Non-current assets
		Property, plant and equipment
			Buildings and structures, net	45,594	33,614
			Land	32,494	26,391
			Other, net	31,286	31,940
			Total property, plant and equipment	109,374	91,945
		Intangible assets
			Goodwill	1,586	1,314
			Other	2,043	2,033
			Total intangible assets	3,629	3,347
		Investments and other assets
			Investment securities	35,899	33,960
			Retirement benefit asset	163	165
			Other	8,990	9,352
			Allowance for doubtful accounts	(2,272)	(2,392)
			Total investments and other assets	42,781	41,085
		Total non-current assets	155,784	136,377
	Deferred assets	80	76
	Total assets	338,939	354,799

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								(Million yen)
							As of March 31,2022	As of June 30,2022
Liabilities
	Current liabilities
		Notes and accounts payable - trade	96,010	97,082
		Short-term borrowings	39,024	39,215
		Current portion of long-term borrowings	5,076	5,095
		Commercial papers	8,000	3,000
		Current portion of bonds payable	11	11
		Income taxes payable	2,032	9,503
		Provisions	2,409	1,477
		Other	11,973	14,304
		Total current liabilities	164,535	169,688
	Non-current liabilities
		Bonds payable	30,000	30,000
		Long-term borrowings	28,559	27,654
		Provisions	1,272	1,221
		Retirement benefit liability	1,237	1,357
		Other	13,020	10,441
		Total non-current liabilities	74,088	70,673
	Total liabilities	238,623	240,362
Net assets
	Shareholders' equity
		Share capital	16,649	16,649
		Capital surplus	6,999	6,998
		Retained earnings	65,484	78,539
		Treasury shares	(5,003)	(4,939)
		Total shareholders' equity	84,129	97,247
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	7,438	6,738
		securities
		Deferred gains or losses on hedges	(39)	(43)
		Foreign currency translation adjustment	1,279	2,712
		Remeasurements of defined benefit plans	15	15
		Total accumulated other comprehensive income	8,692	9,423
	Share acquisition rights	83	76
	Non-controlling interests	7,412	7,692
	Total net assets	100,317	114,437
Total liabilities and net assets	338,939	354,799

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Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the three months)

							(Million yen)
						For the three months	For the three months
						ended June 30,2021	ended June 30,2022
Revenue	102,230	125,751
Cost of sales	85,374	105,847
Gross profit	16,856	19,904
Selling, general and administrative expenses	13,781	15,860
Operating profit	3,075	4,044
Non-operating income
	Interest income	84	137
	Dividend income	328	410
	Share of profit of entities accounted for using equity	104	192
	method
	Other	267	146
	Total non-operating income	782	885
Non-operating expenses
	Interest expenses	418	360
	Other	80	90
	Total non-operating expenses	497	450
Ordinary profit	3,360	4,479
Extraordinary income
	Gain on sale of non-current assets	419	16,770
	Gain on sale of investment securities	-	21
	Gain on revision of retirement benefit plan	5,969	-
	Total extraordinary income	6,388	16,791
Extraordinary losses
	Loss on sale of shares of subsidiaries and associates	-	245
	Loss on disposal of non-current assets	34	48
	Loss on valuation of investment securities	-	10
	Other	1	0
	Total extraordinary losses	35	303
Profit before income taxes	9,713	20,966
Income taxes - current	906	8,938
Income taxes - deferred	2,138	(2,073)
Total income taxes	3,044	6,866
Profit	6,669	14,100
Profit attributable to non-controlling interests	185	212
Profit attributable to owners of parent	6,484	13,888

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