Japan Pulp and Paper : Consolidated Financial Results for the Three Months Ended June 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 Three Months Ended June 30, 2021

[Japanese GAAP]

									August 11, 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: August 12, 2021
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, 2021 (April 01, 2021 to June 30, 2021)
(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, 2021		102,230	-	3,075	60.6		3,360	61.4	6,484	516.4
June 30, 2020		118,042	(11.9)	1,914	(29.4)		2,082	(19.7)	1,052	(49.1)

(Note) Comprehensive income:	Three months ended June 30, 2021:
	Three months ended June 30, 2020:

¥	7,368 million	[	-%]
¥	(448) million	[	-%]

	Basic earnings	Diluted earnings per
	per share	share
Three months ended	Yen	Yen
June 30, 2021	473.76	472.55
June 30, 2020	76.95	76.71

(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 is not stated. In addition, the account name has been changed from "Net sales" to "Revenue".

(2) Consolidated Financial Position

	Total assets	Net assets	Capital adequacy ratio
As of	Million yen		Million yen	%
June 30, 2021	326,572		96,486	27.5
March 31, 2021	321,986		89,872	25.9
(Reference) Equity: As of	June 30, 2021:	¥	89,741 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

-

Fiscal year ending March 31, 2022

55.00

-

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

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

No

(Note) 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 include the effects of the new standards.

* Notes:

(1) Changes in significant subsidiaries during the three months ended June 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):

June 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:
June 30, 2021:	13,693,502	shares
March 31, 2021:	13,671,951	shares
3) Average number of shares during the period:
Three months ended June 30, 2021:	13,686,438	shares
Three months ended June 30, 2020:	13,670,638	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 June 30,2021
Assets
	Current assets
		Cash and deposits	11,643	12,263
		Notes and accounts receivable - trade	111,389	112,992
		Inventories	34,778	35,334
		Other	3,908	4,522
		Allowance for doubtful accounts	(1,308)	(1,297)
		Current assets	160,410	163,815
	Non-current assets
		Property, plant and equipment
			Buildings and structures, net	46,933	46,440
			Land	32,420	32,282
			Other, net	32,331	32,688
			Property, plant and equipment	111,683	111,409
		Intangible assets
			Goodwill	4,869	4,749
			Other	2,113	2,135
			Intangible assets	6,982	6,884
		Investments and other assets
			Investment securities	36,290	35,260
			Retirement benefit asset	6	2,541
			Other	8,605	8,755
			Allowance for doubtful accounts	(2,090)	(2,188)
			Investments and other assets	42,811	44,369
		Non-current assets	161,476	162,662
	Deferred assets	100	95
	Assets	321,986	326,572

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								(Million yen)
							As of March 31,2021	As of June 30,2021
Liabilities
	Current liabilities
		Notes and accounts payable - trade	85,523	86,454
		Short-term borrowings	36,324	36,874
		Current portion of long-term borrowings	5,288	5,183
		Commercial papers	9,000	8,500
		Current portion of bonds payable	23	23
		Income taxes payable	1,231	962
		Provisions	2,383	1,389
		Other	11,907	12,448
		Current liabilities	151,679	151,833
	Non-current liabilities
		Bonds payable	30,011	30,011
		Long-term borrowings	33,412	32,324
		Provisions	1,189	1,184
		Retirement benefit liability	4,237	1,220
		Other	11,585	13,514
		Non-current liabilities	80,435	78,253
	Liabilities	232,114	230,086
Net assets
	Shareholders' equity
		Share capital	16,649	16,649
		Capital surplus	7,280	7,236
		Retained earnings	55,661	61,315
		Treasury shares	(5,123)	(5,039)
		Shareholders' equity	74,467	80,162
	Valuation and translation adjustments
		Valuation difference on available-for-sale	8,702	8,227
		securities
		Deferred gains or losses on hedges	(7)	(1)
		Foreign currency translation adjustment	(107)	1,365
		Remeasurements of defined benefit plans	397	(11)
		Valuation and translation adjustments	8,985	9,579
	Share acquisition rights	117	83
	Non-controlling interests	6,304	6,661
	Net assets	89,872	96,486
Liabilities and net assets	321,986	326,572

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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 30,2020	ended June 30,2021
Revenue	118,042	102,230
Cost of sales	102,299	85,374
Gross profit	15,742	16,856
Selling, general and administrative expenses	13,828	13,781
Operating profit	1,914	3,075
Non-operating income
	Interest income	88	84
	Dividend income	352	328
	Share of profit of entities accounted for using equity	72	104
	method
	Other	241	267
	Total non-operating income	753	782
Non-operating expenses
	Interest expenses	516	418
	Other	69	80
	Total non-operating expenses	585	497
Ordinary profit	2,082	3,360
Extraordinary income
	Gain on revision of retirement benefit plan	-	5,969
	Gain on sale of non-current assets	5	419
	Total extraordinary income	5	6,388
Extraordinary losses
	Loss on disposal of non-current assets	14	34
	Loss on sale of investment securities	5	-
	Other	3	1
	Total extraordinary losses	22	35
Profit before income taxes	2,065	9,713
Income taxes - current	558	906
Income taxes - deferred	236	2,138
Total income taxes	794	3,044
Profit	1,270	6,669
Profit attributable to non-controlling interests	218	185
Profit attributable to owners of parent	1,052	6,484

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