Chuetsu Pulp & Paper : Summary of Consolidated Financial and Business Results for the Year Ended March 2022 (Japanese GAAP)

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.

May 13, 2022

Summary of Consolidated Financial and Business Results

for the Year Ended March 2022 (Japanese GAAP)

Company Name:
Code No./Stock Exchange:	3877/Tokyo
Representative:	Hisashi Uematsu, President & Chief Executive Officer
Contact:	Yoshio Akinaga, General Manager, Administrative Division
URL:	https://www.chuetsu-pulp.co.jp/
Telephone:	0766-26-2404 (Overseas: [phone])

Ordinary general meeting of shareholders to be held:	June 24, 2022
Statutory annual report to be presented:	June 27, 2022
Start of dividend payout:	June 27, 2022
Supplementary briefs for financial results to be presented:	Yes
Financial results briefing to be held:	Yes

(All yen figures are rounded down to the nearest one million yen) (Figures shown in percentage are ratios compared to the same period of the previous fiscal year)

1. Consolidated financial results for the Year Ended March 31, 2022 (from April 1, 2021 to March 31, 2022)

1. Consolidated Business Results

	Net sales		Operating profit			Ordinary profit			Profit attributable to
						owners of parent
Fiscal year	Millions of yen	%	Millions of yen		% Millions of yen	%	Millions of yen	%
ended
March 31, 2022	90,104		10.0	2,352				3,077				1,268
March 31, 2021	81,938		(13.9)	(347)				(319)				(1,052)

Note: Comprehensive income: Fiscal year ended March 31, 2022: 1,456 million yen	(					%)
	Fiscal year ended March 31, 2021: (674) million yen	(				%)
	Profit per share	Diluted profit per share	Ratio of profit to			Ratio of ordinary	Ratio of operating
							income to total assets	income to net sales
Fiscal year	Yen			Yen		%		%	%
ended
March 31, 2022	95.02				2.6	2.5	2.6
March 31, 2021	(78.85)				(2.2)	(0.3)	(0.4)

Note: Equity in earnings of affiliates	Fiscal year ended March 31, 2022: 306 million yen
	Fiscal year ended March 31, 2021: 51 million yen
Note: The Company	2020),

etc. effective from the beginning of the current consolidated fiscal year.

The figures for the fiscal year ending March 31, 2022 are the figures after the application of the accounting standards.

(2) Consolidated Financial Condition

	Total assets	Net assets			Net assets per share
As of	Millions of yen	Millions of yen	%	Yen
March 31, 2022	122,029		48,620	39.8	3,639.20
March 31, 2021	123,490		47,455	38.4	3,550.96
	As of March 31, 2022:	48,584 million yen	As of March 31, 2021: 47,408 million yen

etc. effective from the beginning of the current consolidated fiscal year.

The figures for the fiscal year ending March 31, 2022 are the figures after the application of the accounting standards.

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(3) Consolidated Cash Flows

				Cash and cash
	Cash flows from	Cash flows from	Cash flows from	equivalents
	operating activities	investing activities	financing activities	at the end of
				period
Fiscal year	Millions of yen	Millions of yen	Millions of yen	Millions of yen
ended	8,257	(3,150)	(5,894)	14,861
March 31, 2022
March 31, 2021	5,965	(3,898)	6,284	15,575

2. Cash Dividends

Dividend per share

Total dividend

Dividend payout ratio

Dividend on net

(Annual)

(Consolidated)

assets

End of 1Q

End of 2Q

End of 3Q End of FY

Annual

(Consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

Fiscal year ended

March 31, 2021

0.00

0.00

0.00

Fiscal year ended

March 31, 2022

20.00

20.00

40.00

534

42.1

1.1

Fiscal year ending

March 31, 2023

20.00

20.00

40.00

(Forecast)

48.5

3. Consolidated Financial Forecasts for the Year Ending March 2023 (from April 1, 2022 to March 31, 2023)

For figures shown in percentage, the full year ratios are compared to the previous fiscal year, and the quarterly ratios are compared to the same period of the previous fiscal year

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Net profit per
		owners of parent	share
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
2Q (cumulative)	48,000	11.1	400	(63.9)	500	(64.6)	200	(75.1)	14.98
Full year	101,000	12.1	1,500	(36.2)	1,700	(44.8)	1,100	(13.3)	82.39

Notes

(1) Changes in important subsidiaries during the period

(changes in specified subsidiaries resulting in changes in scope of consolidation):	No
New (company name)	Excluded company name
(2) Changes in accounting policies, changes in accounting estimates, and restatements
1)Changes in Accounting Policies due to Revision of Accounting Standards, etc.		Yes
2)Changes in accounting policies other than (1)			No
3)Changes in accounting estimates			No
4)Correction re-representation				No
(3) Number of shares issued and outstanding (common stock)
1)Number of shares outstanding at end of period	As of		As of
(including treasury stock)		March 31,	13,354,688 shares	March	13,354,688 shares
		2022		31, 2021
2)Number of own shares at end of period	As of	4,314 shares	As of	3,820 shares
		March 31,		March
		2022		31, 2021
3)Average number of shares during the period	Fiscal	13,350,699 shares	Fiscal	13,351,001 shares
		year		year
		ended		ended
		March 31,		March
		2022		31, 2021

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Reference: Summary of Non-Consolidated Financial Results

1. Results for the Year Ended March 31, 2022 (April 1, 2021 - March 31, 2022)

(1) Non-consolidated Business Results

(Figures shown in percentage are ratios compared to the previous fiscal year)

		Net sales		Operating profit	Ordinary profit		Profit
	Fiscal year	of yen	% Millions of yen	%	of yen	% Millions of yen	%
	ended
	March 31, 2022	84,532		10.3	1,942				2,452							854
	March 31, 2021	76,644		(14.0)	(641)				(577)							(1,204)
		Profit per share			Diluted profit per share
	Fiscal year				Yen					Yen
	ended				63.98
	March 31, 2022
	March 31, 2021				(90.22)

effective from the beginning of the current consolidated fiscal year.

The figures for the fiscal year ending March 31, 2022 are the figures after the application of the accounting standards.

1. Non-consolidatedfinancial position

	Total assets	Net assets		Net assets per share
As of	Millions of yen	Millions of yen	%	Yen
March 31, 2022	112,435	41,609	37.0	3,116.72
March 31, 2021	114,297	40,918	35.8	3,064.83

As of March 31, 2022: 41,609 million yen As of March 31, 2021: 40,918 million yen

Note: The Company has applied the effective from the beginning of the current consolidated fiscal year.

The figures for the fiscal year ending March 31, 2022 are the figures after the application of the accounting standards.

2. Non-Consolidated Forecast for the Fiscal Year Ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

For figures shown in percentage, the full year ratios are compared to the previous fiscal year, and the quarterly ratios are compared to the same period of the previous fiscal year

	Net sales		Operating profit	Ordinary profit	Profit				Profit per share
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
2Q (cumulative)	46,000	13.5	200	(79.6)	200	(81.6)	0				0.00
Full year	95,500	13.0	1,100	(43.4)	1,100	(55.2)	600	(29.8)	44.94

forecasts and other special notes

The above forecasts are based on information available as of the date of publication of this document and on certain assumptions that we consider reasonable and are therefore subject to a number of uncertainties. Actual results may differ from the above forecasts due to changes in various factor.

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Financial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877)

3. Consolidated Financial Statements and Important Notes

(1) Consolidated Balance Sheet

						(Unit: Millions of yen)
					As of March 31, 2021	As of March 31, 2022
Assets
Current assets
	Cash and deposits	15,575	14,861
	Notes and accounts receivable		trade	21,286	-
	Notes and accounts receivable and contract	-	22,720
	assets
	Merchandise and finished goods	8,586	8,124
	Work in process	420	492
	Raw materials and supplies	4,319	4,539
	Other	2,855	2,564
	Allowance for doubtful accounts	(2)	(2)
	Total current assets	53,041	53,301
Non-current assets
	Property, plant and equipment
		Buildings and structures	51,753	52,044
		Accumulated depreciation	(34,683)	(35,505)
		Buildings and structures, net	17,070	16,539
		Machinery, equipment and vehicles	239,809	240,663
		Accumulated depreciation	(212,490)	(214,656)
		Machinery, equipment and vehicles, net	27,318	26,007
		Land	7,558	7,596
		Leased assets	222	225
		Accumulated depreciation	(147)	(144)
		Leased assets, net	75	80
		Construction in progress	1,900	1,984
		Other	3,154	3,268
		Accumulated depreciation	(2,784)	(2,787)
		Other, net	370	480
		Total property, plant and equipment	54,293	52,688
	Intangible assets
		Other	246	386
		Total intangible assets	246	386
	Investments and other assets
		Investment securities	7,768	8,256
		Long-term loans receivable from	5,040	4,410
		subsidiaries and affiliates
		Deferred tax assets	2,680	2,554
		Other	472	455
		Allowance for doubtful accounts	(52)	(44)
		Total investments and other assets	15,908	15,632
	Total non-current assets	70,448	68,707
Deferred assets	-	20
Total assets	123,490	122,029

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Financial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877)

					(Unit: Millions of yen)
				As of March 31, 2021	As of March 31, 2022
Liabilities
Current liabilities
	Notes and accounts payable		trade	11,802	12,979
	Short-term borrowings	30,568	27,328
	Lease obligations	29	23
	Income taxes payable	133	493
	Allowance for bonuses	466	512
	Other	4,425	5,232
	Total current liabilities	47,425	46,569
Non-current liabilities
	Long-term borrowings	22,796	20,442
	Lease obligations	52	60
	Provisions for removal cost of property, plant	-	320
	and equipment
	Provisions for environmental measures	2	159
	Provisions for loss on business of subsidiaries	49	47
	and affiliates
	Provisions for business restructuring	-	60
	Retirement benefit liability	5,598	5,631
	Other	109	118
	Total non-current liabilities	28,608	26,839
Total liabilities	76,034	73,408
Net assets
Shareholders equity
	Share capital	18,864	18,864
	Capital surplus	16,253	16,253
	Retained earnings	11,929	12,905
	Treasury shares	(7)	(7)
	Total shareholders equity	47,039	48,015
Accumulated other comprehensive income
	Valuation difference on available-for-sale	745	799
	securities
	Foreign currency translation adjustment	(70)	31
	Remeasurements of defined benefit plans	(306)	(262)
	Total accumulated other comprehensive income	368	568
Non-controlling interests	47	35
Total net assets	47,455	48,620
Total liabilities and net assets	123,490	122,029

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