August 5, 2021

Summary of Consolidated Financial Results

for the Three Months Ended June 30, 2021 (unaudited)

Name of Company Listed:

Stock Exchange Listings:

Code Number:

URL:

Representative:

Person in Charge of Contact:

Planned date of Financial Report submission:

Planned date of the commencement of dividend payments:

Availability of support documentation:

Holding of financial result briefing:

Nippon Paper Industries Co., Ltd.

Tokyo 3863

https://www.nipponpapergroup.com/english/

Toru Nozawa, President

Hiromichi Matoba, General Manager of Accounting & Budgeting Dept. TEL +81-(0)3-6665-1111

August 12, 2021

-

Yes

Yes (for institutional investors and investment analysts)

(Amounts indicated are displayed with amounts of less than one million yen rounded off.)

1. Consolidated Financial Results of Operations for the Three Months Ended June 2021 (April 1, 2021-June 30, 2021)

  1. Consolidated Results of Operations

(The percentages indicate the percentage increase or decrease compared to the same period of the previous fiscal year.)

Net salesOperating incomeOrdinary incomeProfit attributable to owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Three months ended

250,460

11.9

4,828

13.5

3,536

-

1,871

-

June 2021

Three months ended

223,821

-14.2

4,252

-41.8

-936

-

-3,791

-

June 2020

Note: Comprehensive income

Three months ended June 2021

15,097 million yen

(- %)

Three months ended June 2020

-14,686 million yen

(- %)

Net income per share

Net income per share

after adjusting for dilution

Yen

Yen

Three months ended

16.20

-

June 30, 2021

Three months ended

-32.83

-

June 30, 2020

Note: Nippon paper has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. effective from the beginning of the first quarter of the current consolidated fiscal year. The Accounting Standard for Revenue Recognition has been accounted for in the consolidated financial results for the fiscal year ending in March 2022.

  1. Consolidated Financial Status

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of June 30, 2021

1,545,555

432,693

27.3

As of March 31, 2021

1,547,326

424,721

26.7

Reference: Shareholders' equity

As of June 30, 2021

421,612 million yen

As of March 31, 2021

412,368 million yen

Note: Nippon paper has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. effective from the beginning of the first quarter of the current consolidated fiscal year. The Accounting Standard for Revenue Recognition has been accounted for in the consolidated financial results for the fiscal year ending in March 2022.

- 1 -

2. Dividend Status

Dividends per share

1st quarter

2nd quarter

3rd quarter

End of

Annual

end

end

end

fiscal year

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March,

-

10.00

-

30.00

40.00

2021

Fiscal year ending March,

-

2022

Fiscal year ending March,

10.00

-

30.00

40.00

2022 (Projection)

Note: Recent revisions to dividend projection

/No

3. Projection of Consolidated Financial Results for the Fiscal Year Ending March 2022 (April 1, 2021-March 31, 2022)

(The percentages indicate the percentage increase or decrease compared to the same period of the previous fiscal year.)

Net sales

Operating income

Ordinary income

Profit attributable to

Net income

owners of parent

per share

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

Full fiscal year

1,030,000

2.2

25,000

30.0

19,000

54.8

1,000

-68.7

8.66

Note: Recent revisions to projection of consolidated financial results/ No

Note: Nippon paper has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31,2020), etc. effective from the beginning of the first quarter of the current consolidated fiscal year. The Accounting Standard for Revenue Recognition has been accounted for in the consolidated financial results for the fiscal year ending in March 2022.

4. Others

  1. Has the Company made any important changes in its subsidiaries (changes in specified subsidiaries which result in changes in the scope of consolidation)? /No

New

-

(Company name:)

Eliminated

-

(Company name:)

  1. Has the Company adopted a specific accounting method for preparation of quarterly consolidated financial statements? /No
  2. Changes in Accounting principles, changes in accounting estimates, or restatements
    1. Has the Company made any changes in accounting principles following the revision of the Accounting Standard and others? /Yes
    2. Has the Company made any changes in accounting principles other than those described in (i)? /No
    3. Has the Company made any changes in accounting estimates? /No
    4. Has the Company made any restatements? /No
  3. Number of issued and outstanding shares (common stock)

(i) Number of issued and outstanding shares (including treasury stock) as of:

June 30, 2021

116,254,892

Shares

March 31, 2021

116,254,892

Shares

(ii) Number of treasury stock as of:

June 30, 2021

751,058

Shares

March 31, 2021

750,237

Shares

(iii) Average number of shares during the periods of:

Three months ended June 2021

115,504,199

Shares

Three months ended June 2020

115,507,872

Shares

*We introduced the "Board Benefit Trust (BBT)", and have included our shares held by this trust in treasury stock, which is deducted from the calculation of the number of treasury shares at the end of the period and the average number of shares during the period.

* This "Summary of Consolidated Financial Results" is not subject to auditing.

*Disclaimer regarding forward-looking statement and other remarks:

  1. Any statement in this document regarding future performance of the Company is based on the information available at the time of the announcement and certain assumptions judged to be reasonable. Actual performance may differ from forecasts due to a variety of factors.
  2. The support documentation will be posted on the following our website.

https://www.nipponpapergroup.com/english/ir/library/

This document is an English-language translation of the Japanese-language original.

- 2 -

(Appendices)

1. Consolidated Operating Results for the Three Months Ended June 2021 (April 1, 2021-June 30, 2021)

Operating results by business segment are as follows:

Paper and Paperboard:

Consolidated net sales

¥ 131,133 million

(down 2.6% year-on-year)

Consolidated operating income

¥ 165 million

(The result for the same period of previous year

was ¥-1,061 million)

Daily-life Products

Consolidated net sales

¥ 91,879 million

(up 45.2% year-on-year)

Consolidated operating income

¥ 1,417 million

(down 52.7% year-on-year)

Energy

Consolidated net sales

¥ 6,413 million

(down 15.8% year-on-year)

Consolidated operating income

¥ 491 million

(down 66.1% year-on-year)

Wood Products and Construction Related:

Consolidated net sales

¥ 14,176 million

(up 14.1% year-on-year)

Consolidated operating income

¥ 1,879 million

(up 72.9% year-on-year)

(Reference information)

1. Changes in accounting policies

Application of Accounting Standard for Revenue Recognition, etc.

"Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020. Hereinafter "Revenue Recognition Standard") and related guidelines have been adopted from the beginning of the current first quarter. In line with this adoption, revenue is recognized at the time of the transfer of controls for promised goods or services to customers in the amount that reflects the consideration to which they expect to be entitled in exchange for those goods or services.

As a main change of the adoption of the new accounting standard, the compensation paid to some customers was previously recorded in selling, general and administrative expenses, but it has been changed to a method of reducing it from net sales. In addition, for certain transactions that qualify as an agent, the entire amount recieved as compensation from the customers was previously recognized as revenue, but now only the difference between the amount received from the customers and the amount paid to the supplier is recognized as revenue.

In adopting the Revenue Recognition Standard, in accordance with the transitional treatment set forth in the proviso of Article 84 of the Revenue Recognition Standard, the cumulative effect of retrospective application of the standards prior to the beginning of the current first quarter was added to or subtracted from retained earnings at the beginning of the current first quarter. The new accounting policy was applied from the beginning balance of the current first quarter.

As a result, for the period of current first quarter, net sales decreased by ¥12,708 million, cost of sales decreased by ¥6,573 million, selling, general and administrative expenses decreased by ¥6,118 million. Operating income, ordinary income, and profit before income taxes respectively decreased by ¥17 million. In addition, the balance of retained earnings at the beginning of the current first quarter decreased by ¥4 million.

2. Application of Accounting Standard for Fair Value Measurement, etc.

"Accounting Standard for Fair Value Measurement" (ASBJ Statement No. 30, July 4, 2019. Hereinafter "Fair Value Measurement Standard") and other standards have been adopted from the beginning of the current first quarter, and in accordance with the transitional treatment set forth in Article 19 of Fair Value Measurement Standard and Article 44-2 of "Accounting Standard for Financial Instruments" (ASBJ Statement No. 10, July 4, 2019), Nippon paper will continue to apply new accounting policies prescribed by Fair Value Measurement Standard and other standards into the future. There are no impacts from these changes in the Quarterly Consolidated Financial Statements.

- 3 -

1. Supplementary Financial Results Presentation Materials for the Three Months Ended June 30, 2021

(1) Consolidated Balance Sheets

(Millions of yen)

As of March 31,

As of June 30,

2021

2021

Assets

Current assets

Cash and deposits

69,733

47,198

Notes and accounts receivable-trade

251,210

245,197

Merchandise and finished goods

84,596

90,661

Work in process

18,241

20,220

Raw materials and supplies

70,840

74,964

Other

39,993

45,995

Allowance for doubtful accounts

(851)

(878)

Total current assets

533,764

523,360

Non-current assets

Property, plant and equipment

Buildings and structures

535,112

537,990

Accumulated depreciation

(382,445)

(385,248)

Buildings and structures, net

152,666

152,742

Machinery, equipment and vehicles

2,325,630

2,344,022

Accumulated depreciation

(1,988,826)

(2,006,351)

Machinery, equipment and vehicles, net

336,803

337,670

Land

207,556

208,653

Construction in progress

35,275

32,822

Other

96,338

98,218

Accumulated depreciation

(46,628)

(47,833)

Other, net

49,710

50,385

Total property, plant and equipment

782,012

782,276

Intangible assets

24,710

24,759

Investments and other assets

Investments in securities

161,375

163,779

Other

46,041

51,952

Allowance for doubtful accounts

(577)

(571)

Total investments and other assets

206,839

215,159

Total non-current assets

1,013,562

1,022,195

Total assets

1,547,326

1,545,555

- 4 -

(Millions of yen)

As of March 31,

As of June 30,

2021

2021

Liabilities

Current liabilities

Notes and account payable-trade

125,115

128,904

Short-term loans payable

199,009

215,559

Income taxes payable

3,799

1,625

Other

98,762

99,541

Total current liabilities

426,687

445,632

Non-current liabilities

Bonds payable

35,000

35,000

Long-term loans payable

574,846

547,719

Provision for environmental measures

14,223

14,115

Net defined benefit liability

12,790

13,034

Other

59,057

57,361

Total non-current liabilities

695,918

667,230

Total liabilities

1,122,605

1,112,862

Net assets

Shareholders' equity

Capital stock

104,873

104,873

Capital surplus

216,417

216,417

Retained earnings

42,672

39,403

Treasury shares

(1,839)

(1,840)

Total shareholders' equity

362,124

358,853

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

23,407

19,488

Deferred gains or losses on hedges

140

1,062

Foreign currency translation adjustment

22,160

37,118

Remeasurements of defined benefit plans

4,536

5,089

Total accumulated other comprehensive income

50,244

62,759

Non-controlling interests

12,352

11,080

Total net assets

424,721

432,693

Total liabilities and net assets

1,547,326

1,545,555

- 5 -

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original document
  • Permalink

Disclaimer

Nippon Paper Industries Co. Ltd. published this content on 05 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2021 06:15:05 UTC.