Annual Securities Report
From January 1, 2023 to December 31, 2023
(72nd Term)
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Annual Securities Report
-
This Report was prepared from data submitted via EDINET (Electronic
Disclosure for Investors' NETwork) for the Annual Securities Report as required by Article 24, Paragraph 1, of the Financial Instruments and Exchange Act of Japan, pursuant to Article 27-30-2 of that Act. This Report adds pagination and a table of contents. - The audit report attached to the Annual Securities Report submitted by the above method and the Internal Controls Report and Confirmation Letter submitted together with the above Annual Securities Report are attached at the end of this Report.
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Contents
Page | |||
Annual Securities Report for 72nd Term | |||
Cover sheet | 4 | ||
Part 1. | Company information | 5 | |
I. | Company overview | 5 | |
1. | Trends in KPIs, etc | 5 | |
2. | History | 7 | |
3. | Lines of business | 8 | |
4. | Affiliate companies | 10 | |
5. | Employees | 11 | |
II. | Business conditions | 13 | |
1. | Management policies, business environment, topics, etc | 13 | |
2. | Sustainability concepts and initiatives | 15 | |
3. | Business and other risks | 19 | |
4. | Management's analysis of financial standing, business results, and cash flows | 20 | |
5. | Important business contracts, etc | 25 | |
6. | Research and development activities | 25 | |
III. | Facilities | 27 | |
1. | Overview of capital investment | 27 | |
2. | Status of major equipment | 27 | |
3. | Plans for new facilities, removal of facilities, etc | 28 | |
IV. | Status of the Company | 29 | |
1. | Stock, etc | 29 | |
2. | Acquisition of treasury share, etc | 33 | |
3. | Dividend policy | 34 | |
4. | Corporate governance | 35 | |
V. | Accounts | 59 | |
1. | Consolidated financial statements, etc | 60 | |
2. | Financial statements, etc | 97 | |
VI. | Overview of stock administration by the Company | 110 | |
VII. Reference information on the Company | 111 | ||
1. | Information on the parent company of the Company | 111 | |
2. | Other reference information | 111 | |
Part 2. | Information on the Company's guarantors | 112 |
Audit Report
Internal Controls Report
Confirmation Letter
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Cover sheet
Document submitted: | Annual Securities Report |
Underlying legal provisions: | Article 24, Paragraph 1, of the Financial Instruments and Exchange Act of Japan |
Submitted to: | Director, Kinki Local Finance Branch Bureau |
Date submitted: | March 28, 2024 |
Business year: | 72nd Term (January 1 - December 31, 2023) |
Company name: | ザ・パック株式会社 |
Company name in English: | The Pack Corporation |
Name and title of representative: | Hideaki Yamashita, President & CEO |
Head office: | 9-3 Higashiobase, Higashinari-ku, Osaka, Japan |
Tel.: | +81-6-4967-1221 |
Administrative contact: | Ikuo Shimomura, Divisional General Manager of Corporate Division |
Nearest contact address: | 9-3 Higashiobase, Higashinari-ku, Osaka, Japan |
Tel.: | +81-6-4967-1221 |
Administrative contact: | Ikuo Shimomura, Divisional General Manager of Corporate Division |
Viewing locations: | The Pack Corporation |
9-3 Higashiobase, Higashinari-ku, Osaka, Japan | |
Tokyo Stock Exchange, Inc. | |
2-1 Nihonbashi Kabutocho, Chuo-ku, Tokyo, Japan |
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Part 1. Company information
- Company overview
1. Trends in KPIs, etc.
- Indicators of consolidated business performance
Fiscal year | 68th | 69th | 70th | 71st | 72nd | |
Fiscal year ended | December | December | December | December | December | |
2019 | 2020 | 2021 | 2022 | 2023 | ||
Net sales | (¥ million) | 95,502 | 78,445 | 79,690 | 89,060 | 97,714 |
Ordinary income | (¥ million) | 7,199 | 3,606 | 4,422 | 6,353 | 8,063 |
Profit attributable to owners of | (¥ million) | 4,700 | 2,392 | 2,824 | 4,058 | 5,652 |
parent | ||||||
Comprehensive income | (¥ million) | 4,763 | 2,368 | 3,325 | 4,362 | 7,059 |
Net assets | (¥ million) | 58,495 | 59,739 | 62,032 | 65,371 | 71,156 |
Total assets | (¥ million) | 88,446 | 83,556 | 87,422 | 94,365 | 98,847 |
Net assets per share | (¥) | 3,076.27 | 3,141.09 | 3,261.64 | 3,436.46 | 3,736.44 |
Net income per share | (¥) | 243.89 | 126.01 | 148.71 | 213.55 | 297.07 |
Diluted net income per share | (¥) | 243.50 | 125.85 | 148.53 | 213.38 | 296.86 |
Capital adequacy ratio | (%) | 66.0 | 71.4 | 70.9 | 69.2 | 71.9 |
Return on equity | (%) | 8.2 | 4.1 | 4.6 | 6.4 | 8.3 |
Price-to-earnings ratio | (times) | 16.2 | 22.4 | 18.1 | 11.3 | 11.4 |
Cash flows from operating | (¥ million) | 6,599 | 3,155 | 7,217 | 5,380 | 4,443 |
activities | ||||||
Cash flows from investing | (¥ million) | (4,136) | (5,013) | (3,460) | (3,762) | (3,962) |
activities | ||||||
Cash flows from financing | (¥ million) | (3,319) | (1,214) | (1,029) | (1,124) | (1,407) |
activities | ||||||
Ending balance of cash and | (¥ million) | 18,307 | 15,224 | 18,067 | 18,653 | 17,812 |
cash equivalents | ||||||
Employees | 1,252 | 1,240 | 1,198 | 1,183 | 1,183 | |
[average number of temporary | (persons) | (505) | (480) | (468) | (472) | (515) |
employees, not included | ||||||
above] | ||||||
Note: The Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan [ASBJ] Statement No. 29, March 31, 2020) and related guidance have been applied since the 71st term. KPIs and other data for the 70th term reflect retroactive application of these accounting standards.
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- Indicators for the Company
Fiscal year | 68th | 69th | 70th | 71st | 72nd | ||
Fiscal year ended | December | December | December | December | December | ||
2019 | 2020 | 2021 | 2022 | 2023 | |||
Net sales | (¥ million) | 84,599 | 69,055 | 69,557 | 77,117 | 85,485 | |
Ordinary income | (¥ million) | 6,549 | 3,305 | 3,748 | 5,214 | 6,713 | |
Net income | (¥ million) | 4,306 | 2,232 | 2,175 | 3,268 | 4,670 | |
Capital | (¥ million) | 2,553 | 2,553 | 2,553 | 2,553 | 2,553 | |
Total shares issued | (thousand shares) | 19,900 | 19,900 | 19,900 | 19,900 | 19,900 | |
and outstanding | |||||||
Net assets | (¥ million) | 54,989 | 55,670 | 57,053 | 59,426 | 63,790 | |
Total assets | (¥ million) | 81,195 | 76,327 | 79,172 | 85,299 | 87,903 | |
Net assets per share | (¥) | 2,893.13 | 2,928.01 | 3,000.23 | 3,123.70 | 3,349.40 | |
Dividends per share | 55.00 | 60.00 | 50.00 | 65.00 | 90.00 | ||
[interim dividend per share, | (¥) | (25.00) | (30.00) | (25.00) | (30.00) | (35.00) | |
included above] | |||||||
Net income per share | (¥) | 223.44 | 117.61 | 114.51 | 171.97 | 245.44 | |
Diluted net income per share | (¥) | 223.08 | 117.45 | 114.38 | 171.83 | 245.27 | |
Capital adequacy ratio | (%) | 67.6 | 72.9 | 72.0 | 69.6 | 72.5 | |
Return on equity | (%) | 8.0 | 4.0 | 3.9 | 5.6 | 7.6 | |
Price-to-earnings ratio | (times) | 17.7 | 24.0 | 23.6 | 14.0 | 13.8 | |
Dividend payout ratio | (%) | 24.6 | 51.0 | 43.7 | 37.8 | 36.7 | |
Employees | 893 | 881 | 841 | 835 | 840 | ||
[average number of temporary | (persons) | (416) | (402) | (390) | (393) | (436) | |
employees, not included | |||||||
above] | |||||||
Total returns to shareholders | 132 | 97 | 94 | 87 | 122 | ||
[Indicator for comparison: | (%) | (118) | (127) | (143) | (140) | (179) | |
TOPIX including dividends] | |||||||
Highest share price | (¥) | 4,320 | 4,245 | 3,270 | 2,817 | 3,450 | |
Lowest share price | (¥) | 2,827 | 2,557 | 2,537 | 2,107 | 2,355 | |
Note: Highest and lowest share prices are prices on the Prime Market of the Tokyo Stock Exchange since April 4, 2022, and on the First Section of the Tokyo Stock Exchange for earlier periods.
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2. History
May 1952 | Nippon Case Corporation established and launches sales of paper cartons and apparel boxes. |
July 1955 | Hanazono Plant opens in Higashiosaka. Integrated in-house production begins for products ranging from |
corrugated boxes to apparel boxes. | |
May 1957 | Production of paper shopping bags begins. |
December 1957 | Kobe Office (now Kobe Branch) opens. |
June 1958 | Nagoya Office (now Nagoya Branch) opens. |
September 1959 | Konoike Plant (now Osaka Plant) opens in Higashiosaka; production facilities expanded. |
August 1960 | Fukuoka Branch and Kyoto Office (now the Kyoto Branch) open. |
March 1961 | Tokyo Branch opens (now the Tokyo Head Office). |
September 1964 | Expansion work completed at Konoike Plant. Hanazono Plant relocated. Full-scale multifaceted |
production and management structures established. | |
July 1965 | Sapporo Office (now the Hokkaido Branch) opens. |
May 1966 | Hiroshima Office (now the Hiroshima Branch) opens. |
May 1967 | Okayama Office (now the Okayama Branch) opens. |
April 1968 | Sendai Office (now the Tohoku Branch) opens. |
September 1969 | Nara Plant opens in Yamatokoriyama as a plant specializing in corrugated boxes. Urawa Plant opens in |
Urawa. | |
August 1974 | Production of plastic bags begins. |
September 1979 | Saitama Plant opens in Sakado; Urawa Plant relocated. |
July 1983 | Company is renamed The Pack Corporation. |
January 1987 | Yokohama Office (now the Yokohama Branch) opens. |
November 1987 | The Pack America Corp. (now a consolidated subsidiary) established in the United States |
August 1991 | Ibaraki Plant opens in Hitachi. |
September 1991 | Stock listed on second section of Osaka Securities Exchange |
January 1996 | The Nicols established |
January 1998 | Kanto Branch opens. |
January 1999 | Ibaraki Plant earns ISO 14001 (environmental management systems) certification. |
December 1999 | Headquarters earns ISO 14001 (environmental management systems) certification. |
April 2000 | Nara Plant earns ISO 9001 (quality management) certification. |
September 2001 | Stock listed on second section of Tokyo Stock Exchange |
October 2001 | Osaka, Saitama, and Ibaraki plants earn ISO 9001 (quality management) certification. |
April 2002 | Nara Plant earns ISO 14001 (environmental management systems) certification. |
October 2002 | Osaka and Saitama plants earn ISO 14001 (environmental management systems) certification. |
June 2003 | Stock listed on first sections of Tokyo Stock Exchange and Osaka Securities Exchange |
October 2003 | Keihin Tokushu Printing Corp. (now a consolidated subsidiary) established |
December 2003 | Shanghai Office opens in China. |
March 2006 | The Pack (Shanghai) Corporation (now a consolidated subsidiary) established in China |
November 2006 | All sites earn ISO 14001 (environmental management systems) certification. |
April 2007 | Additional shares acquired in Nikko Print Corporation (now a consolidated subsidiary) |
August 2007 | The Pack (Changshu) Co., Ltd. (now a consolidated subsidiary) established in China |
Headquarters, Tokyo and Osaka plants, and sales offices earn FSC® CoC certification (FSC® C020517). | |
February 2009 | Pack Takeyama Co., Ltd. (now a consolidated subsidiary) established |
April 2009 | All sites earn ISO 9001 (quality management) certification. |
July 2011 | Tokyo Plant opens in Hidaka, Saitama Prefecture; Saitama Plant relocated. |
January 2014 | The Nicols merged through absorption-type merger |
June 2014 | Acquired all shares of stock in Nishinihon Printing Co., Ltd. (now a consolidated subsidiary), making it |
a wholly owned subsidiary | |
December 2016 | All paper products production and sales sites in Japan earn FSC® CoC certification (FSC® C020517). |
April 2018 | Acquired stock in Kannaru Printing Co., Ltd. (now a consolidated subsidiary), making it a subsidiary. |
December 2018 | Tokyo and Osaka plants earn FSSC 22000 (food safety) certification. |
April 2022 | Listing transferred to the Prime Market of the Tokyo Stock Exchange |
March 2023 | New headquarter building completed in Higashinari-ku, Osaka |
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3. Lines of business
The Pack Group consists of nine companies, the Pack Corporation and eight consolidated subsidiaries.
The Group's business activities include the manufacture and sale of paper products, film packaging, and other products, as well as related research, logistics, services, and other activities.
The Group's businesses are positioned as outlined below.
Segment | Lines of business | Companies |
Paper Products | Manufacture, purchase, and sale of paper | The Pack Corporation |
bags, printed folding paper cartons, | Keihin Tokushu Printing Corp. | |
corrugated boxes, etc. | Nikko Print Corporation | |
Pack Takeyama Co., Ltd. | ||
Nishinihon Printing Co., Ltd. | ||
Kannaru Printing Co., Ltd. | ||
The Pack America Corp. | ||
The Pack (Shanghai) Corporation | ||
The Pack (Changshu) Co., Ltd. | ||
Film Packaging | Manufacture, purchase, and sale of plastic | The Pack Corporation |
bags, garment bags, etc. | Pack Takeyama Co., Ltd. | |
The Pack America Corp. | ||
The Pack (Shanghai) Corporation | ||
Other Businesses | Purchase and sale of gifts, supplies, price | The Pack Corporation |
tags, design production, advertising and | Pack Takeyama Co., Ltd. | |
promotional materials, etc. | Nishinihon Printing Co., Ltd. | |
Kannaru Printing Co., Ltd. | ||
The Pack America Corp. | ||
The Pack (Shanghai) Corporation | ||
The Pack America Corp. is a U.S. subsidiary selling products primarily in the U.S.
The Pack (Shanghai) Corporation and The Pack (Changshu) Co., Ltd. are Chinese subsidiaries. The Pack (Shanghai) Corporation sells products primarily in China, while The Pack (Changshu) Co., Ltd. produces paper bags for sale in China and to the Company in Japan.
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Products
and sale of paper products, film packaging, gifts, etc.) | The Pack Corporation |
(Manufacture, purchase, |
Subcontracting of
production
Receipt of products
Subcontracting of
production
Receipt of products and
in-process products
Subcontracting of
production
Receipt of in-process
products
(Manufacture, purchase, and sale of paper products, gifts, etc.)
☆Kannaru Printing Co., Ltd.
Transactions
(Manufacture, purchase, and sale of paper products, gifts, etc.)
☆Nishinihon Printing Co., Ltd.
(Manufacture, purchase, and sale of paper products, film packaging, gifts, etc.)
☆Pack Takeyama Co., Ltd.
(Printing and sale of paper
products)
☆Keihin Tokushu Printing
Corp.
Transactions
(Printing and sale of paper products)
☆Nikko Print Corporation
(Purchase and sale of paper products, film packaging, gifts, etc.)
☆The Pack America Corp.
(Purchase and sale of paper products, film packaging, gifts, etc.)
☆The Pack (Shanghai)
Corporation
Products
Products
Products
Products
Products
Customers
Subcontracting | Receipt of products | |
of production | ||
Subcontracting of | ||
production | (Manufacture of paper products) |
☆The Pack (Changshu) Co., | |
Receipt of products | Ltd. |
Note: ☆ Consolidated subsidiary
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4. Affiliate companies
Capital or | Ownership | ||||
ratio of voting | |||||
Name | Address | investment | Main lines of business | Relationship | |
rights | |||||
(¥ million) | |||||
(%) | |||||
(Consolidated | |||||
subsidiary) | |||||
Sale of our products; purchase of paper | |||||
Keihin Tokushu Printing | Higashinari Ward, | 10 | Paper Products business | 100.0 | products; concurrent posting of officers; |
Corp. | Osaka | secondment of employees; lending of | |||
funds; lending of equipment | |||||
Purchase of paper products; concurrent | |||||
Nikko Print Corporation | Higashinari Ward, | 20 | Paper Products business | 100.0 | posting of officers; secondment of |
Osaka | employees; lending of funds; lending of | ||||
equipment | |||||
Paper Products business | Sale of our products; purchase of paper | ||||
Higashinari Ward, | products; concurrent posting of officers; | ||||
Pack Takeyama Co., Ltd. | 90 | Film Packaging business | 100.0 | ||
Osaka | secondment of employees; payment | ||||
Other Businesses | |||||
agency services | |||||
Nishinihon Printing Co., | Higashinari Ward, | Paper Products business | Sale of our products; purchase of paper | ||
45 | 100.0 | products; concurrent posting of officers; | |||
Ltd. | Osaka | Other Businesses | |||
secondment of employees | |||||
Kannaru Printing Co., | Yodogawa Ward, | Paper Products business | Sale of our products; concurrent posting of | ||
12 | 100.0 | officers; secondment of employees; | |||
Ltd. | Osaka | Other Businesses | |||
lending of funds | |||||
New York, N.Y., | Paper Products business | Concurrent posting of officers; | |||
The Pack America Corp. | US$1,000,000 | Film Packaging business | 100.0 | ||
U.S.A. | secondment of employees | ||||
Other Businesses | |||||
The Pack (Shanghai) | Paper Products business | Concurrent posting of officers; | |||
Shanghai, China | US$500,000 | Film Packaging business | 100.0 | ||
Corporation | secondment of employees | ||||
Other Businesses | |||||
The Pack (Changshu) | Changshu, Jiangsu | Purchase of paper products; concurrent | |||
Co., Ltd. | US$3,900,000 | Paper Products business | 93.6 | posting of officers; secondment of | |
Province, China | |||||
(See Note 2.) | employees; lending of funds | ||||
Notes:
- Details under Important Lines of Business indicate business segment names as used under Segment Information.
- Qualifies as designated subsidiary.
- None of the above companies submits securities notices or annual securities reports.
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Disclaimer
The Pack Corporation published this content on 12 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 April 2024 05:46:04 UTC.