中越パルプ工業（3877） – [Delayed]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. Summary of Consolidated Financial and Business Results for the Year Ended March 2022 (Japanese GAAP) May 13, 2022 Company Name: Code No./Stock Exchange: 3877/Tokyo Representative: Contact: URL: Telephone: Ordinary general meeting of shareholders to be held: Statutory annual report to be presented: Start of dividend payout: Supplementary briefs for financial results to be presented: Yes Yes Financial results briefing to be held: Hisashi Uematsu, President & Chief Executive Officer Yoshio Akinaga, General Manager, Administrative Division https://www.chuetsu-pulp.co.jp/ 0766-26-2404 (Overseas: +81-76-626-2424) June 24, 2022 June 27, 2022 June 27, 2022 (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 Fiscal year ended Millions of yen%Millions of yen% Millions of yen%Millions of yen%Profit attributable to owners of parent 1,268(1,052)March 31, 2022 March 31, 2021Note: Comprehensive income: Fiscal year ended March 31, 2022: 1,456 million yen ( %) 90,10481,93810.0(13.9)3,077(319)2,352(347)Fiscal year ended March 31, 2021: (674) million yen ( %) Profit per share Diluted profit per share Ratio of profit to YenYenFiscal year endedMarch 31, 2022 95.02(78.85)March 31, 2021Note: Equity in earnings of affiliates Ratio of ordinary income to total assets%Ratio of operating income to net sales %2.5(0.3)2.6(0.4)%2.6(2.2)Note: The Company 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. 2020), Fiscal year ended March 31, 2022: 306 million yen Fiscal year ended March 31, 2021: 51 million yen (2) Consolidated Financial Condition As of March 31, 2022 March 31, 2021 Total assets Net assets Millions of yen122,029123,490Millions of yen 48,62047,455Net assets per shareYen3,639.203,550.96%39.838.4 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. ó ï ó (3) Consolidated Cash Flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Millions of yenMillions of yenMillions of yenCash and cash equivalents at the end of periodMillions of yen8,2575,965(3,150)(3,898)(5,894)6,28414,86115,575Dividend per share End of 1Q End of 2Q End of 3Q End of FY AnnualYenYenYenYen Millions of yenTotal dividend (Annual) Dividend payout ratio (Consolidated) Dividend on net assets (Consolidated)%%Yen0.0020.0020.000.000.0020.0040.0020.0040.005341.142.148.5Fiscal year ended March 31, 2022March 31, 20212. Cash Dividends Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Fiscal year ending March 31, 2023 (Forecast) 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 yearNet sales Operating profit Ordinary profit Profit attributable to owners of parent Net profit per share 2Q (cumulative) Full year Millions of yen % Millions of yen40011.11,50012.148,000101,000% Millions of yen5001,700(63.9)(36.2)% Millions of yen2001,100(64.6)(44.8)%(75.1)(13.3)Yen14.9882.39Notes (1) Changes in important subsidiaries during the period Excluded company name(changes in specified subsidiaries resulting in changes in scope of consolidation):(company name) New (2) Changes in accounting policies, changes in accounting estimates, and restatements 1) Changes in Accounting Policies due to Revision of Accounting Standards, etc.2) Changes in accounting policies other than (1)3) Changes in accounting estimates4) Correction re-representation(3) Number of shares issued and outstanding (common stock) 1) Number of shares outstanding at end of period (including treasury stock) 13,354,688 shares13,354,688 shares2) Number of own shares at end of period 4,314 shares3,820 shares3) Average number of shares during the period 13,350,699 shares13,351,001 sharesNoYes NoNoNoAs of March 31, 2021As of March 31, 2021Fiscal year ended March 31, 2021As of March 31, 2022As of March 31, 2022Fiscal year ended March 31, 2022ó î ó 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 Millions of yen% Millions of yen% Millions of yen% Millions of yen%84,53276,64410.3(14.0)1,942(641)2,452(577)854(1,204) Profit per share Diluted profit per share YenFiscal year endedMarch 31, 2022March 31, 2021Fiscal year ended March 31, 2022March 31, 2021Yen63.98(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. (2) Non-consolidated financial position As of March 31, 2022 March 31, 2021 Total assets Net assets Millions of yen112,435114,297Millions of yen41,60940,918 Net assets per share Yen%3,116.7237.03,064.8335.8 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 shareMillions of yen % Millions of yen% Millions of yen% Millions of yen%2Q (cumulative) Full year 46,00095,50013.513.02001,100(79.6)(43.4)2001,100(81.6)(55.2)0600 (29.8)Yen0.0044.94The 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.forecasts and other special notes ó í ó 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 Notes and accounts receivable trade Notes and accounts receivable and contract assets Other Merchandise and finished goods Work in process Raw materials and supplies Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures Accumulated depreciation Buildings and structures, net Machinery, equipment and vehicles Accumulated depreciation Machinery, equipment and vehicles, net Land Leased assets Accumulated depreciation Leased assets, net Construction in progress Other Accumulated depreciation Other, net Total property, plant and equipment Intangible assets Other Total intangible assets Investments and other assets Investment securities Long-term loans receivable from subsidiaries and affiliates Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Deferred assets Total assets ó ì ó 15,575 21,286 – 8,586 420 4,319 2,855 (2) 53,041 51,753 (34,683) 17,070 239,809 (212,490) 27,318 7,558 222 (147) 75 1,900 3,154 (2,784) 370 54,293 246 246 7,768 5,040 2,680 472 (52) 15,908 70,448 – 123,490 14,861 – 22,720 8,124 492 4,539 2,564 (2) 53,301 52,044 (35,505) 16,539 240,663 (214,656) 26,007 7,596 225 (144) 80 1,984 3,268 (2,787) 480 52,688 386 386 8,256 4,410 2,554 455 (44) 15,632 68,707 20 122,029 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 Short-term borrowings Lease obligations Income taxes payable Allowance for bonuses Other Total current liabilities Non-current liabilities Long-term borrowings Lease obligations Provisions for removal cost of property, plant and equipment Provisions for environmental measures Provisions for loss on business of subsidiaries and affiliates Provisions for business restructuring Retirement benefit liability Other Total non-current liabilities Total liabilities Net assets Shareholders equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets Total liabilities and net assets 11,802 30,568 29 133 466 4,425 47,425 22,796 52 – 2 49 – 5,598 109 28,608 76,034 18,864 16,253 11,929 (7) 47,039 745 (70) (306) 368 47 47,455 123,490 ó ë ó 12,979 27,328 23 493 512 5,232 46,569 20,442 60 320 159 47 60 5,631 118 26,839 73,408 18,864 16,253 12,905 (7) 48,015 799 31 (262) 568 35 48,620 122,029 Financial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877)(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income Consolidated Statements of Income (Unit: Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 90,104 76,235 13,869 182 6,046 1,603 224 1,334 110 383 141 1,488 11,516 2,352 75 138 4 15 27 453 11 306 19 1,052 277 24 – 26 328 3,077 Total selling, general and administrative expenses Net sales Cost of sales Gross profit Selling, general and administrative expenses Sales commissions Transportation costs Storage costs Officer s compensation or remuneration Employees salaries and benefits Retirement benefit expenses R&D expenses Depreciation Other Operating profit (loss) Non-operating income Interest income Dividend income Commission received Equipment rent Gain on sale of scrap Foreign exchange gains Gain on insurance claims equity method Other Total non-operating income Non-operating expenses Interest expenses Commission paid Depreciation and amortization Other Total non-operating expenses Ordinary profit (loss) Share of profit of entities accounted for using 81,938 68,126 13,811 4,406 4,785 1,589 223 1,276 105 286 124 1,360 14,159 (347) 84 128 5 12 14 133 7 51 19 456 235 68 69 54 427 (319) ó ê ó Financial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877) (Unit: Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Extraordinary income Gain on sale of investment securities Gain on sale of non-current assets Insurance claim income Gain on liquidation of subsidiaries and affiliates Total extraordinary income Extraordinary losses Loss on retirement of non-current assets Impairment losses Provision for fixed asset removal costs Provision for environmental measures Business restructuring expenses Special retirement benefits Loss on valuation of investment securities Other Total extraordinary losses Profit (loss) before income taxes and minority interests Income taxes current Income taxes deferred Total income taxes Profit (loss) Profit (loss) attributable to non-controlling interests Profit (loss) attributable to owners of parent 0 2 – – 3 – – – 184 482 27 0 83 778 (1,093) 111 (152) (40) (1,052) 0 (1,052) 6 13 146 64 230 470 337 320 156 164 22 – 117 1,589 1,718 390 71 461 1,256 (11) 1,268 ó é ó Consolidated Statements of Comprehensive Income (Unit: Millions of yen) Financial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877)Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Profit (loss) Other comprehensive income Valuation difference on available-for-sale securities tax Remeasurements of defined benefit plans, net of Share of other comprehensive income of entities accounted for using equity method Total other comprehensive income Comprehensive income (Breakdown) parent controlling interests Comprehensive income attributable to owners of Comprehensive income attributable to non-(1,052) 274 43 59 377 (674) (674) 0 1,256 125 44 30 199 1,456 1,468 (11) ó è ó Financial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877)(3) Consolidated Statements of Changes in Net Assets Previous Consolidated Fiscal Year (April 1, 2020 to March 31, 2021) (Unit: Millions of yen) Shareholders equity Accumulated other comprehensive income Capital Capital ed stock surplusearninRetaings Treasury stock Total shareholdersequity Net unrealized gains (losses) on – 9 -vailable-for-sale securities, net of taxes Foreign currency translation adjustments Accumulated retirement benefits Total Non-accumulcontrolling interests ated other comprehensive income (loss) 18,86416,25313,315(7)48,426385(48)(345)(8)47period reflecting change 18,86416,25313,315(7)48,426385(48)(345)(8)47(1,386)(0)(1,386)360(21)39377360(21)393770018,86416,25311,929(7)47,039745(70)(306)36847(333)(333)(1,052)(1,052)(0)(0)ó ç ó Balance at the beginning of period Cumulative effect of a change in accounting policy Balance at beginning of in accounting policy Changes during the period Dividends from surplus Profit (loss) attributable to owners of parent Purchase of treasury stock Net changes of items other than shareholdersequity Total changes during the period Balance at the end of period Total net assets 48,46448,464(333)(1,052)(0)378(1,008)47,455Financial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877)Consolidated Fiscal Year Under Review (April 1, 2021 to March 31, 2022) (Unit: Millions of yen) Shareholders equity Accumulated other comprehensive income Capital Capital ed stock surplusearninRetaings Treasury stock Total shareholdersequity Net unrealized gains (losses) on – 10 – vailable-for-sale securities, net of taxes Foreign currency translation adjustments Accumulated retirement benefits accumulNon-Total ated other controlTotal ling net comprehinterestassets ensive s income (loss) 18,86416,25311,929(7)47,039745(70)(306)3684747,455(24)(24)(24)period reflecting change 18,86416,25311,904(7)47,014745(70)(306)3684747,431(267)1,268(267)1,268(0)(0)(267)1,268(0)5410143199(11)1881,001(0)1,0015410143199(11)1,18918,86416,25312,905(7)48,01579931(262)5683548,620Balance at the beginning of period Cumulative effect of a change in accounting policy Balance at beginning of in accounting policy Changes of items during the period Dividends from surplus Profit (loss) attributable to owners of parent Purchase of treasury Net changes of items other than shareholdersTotal changes during the stock equity period period Balance at the end of ó ïð ó Financial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877)(4) Consolidated Statements of Cash Flows (Unit: Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Cash flows from operating activities Profit before income taxes (-) Depreciation Impairment losses Increase (decrease) in allowance for doubtful Increase (decrease) in allowance for environmental accounts measures Interest and dividend income Interest expenses Loss (gain) on sale of investment securities Loss on retirement of non-current assets Loss (gain) on valuation of investment securities Loss (gain) on sale and disposal of property, plant and equipment, net Business restructuring expenses Decrease (increase) in trade receivables Decrease (increase) in inventories Decrease (increase) in other assets Increase (decrease) in trade payables Increase (decrease) in retirement benefit liability Increase (decrease) in accrued bonuses Increase (decrease) in provisions for fixed asset Increase (decrease) in other liabilities Increase (decrease) in consumption taxes payable Share of loss (profit) of entities accounted for using Loss (gain) on liquidation of subsidiaries and Increase (decrease) in provisions for loss on business of subsidiaries and affiliates removal costs or receivable equity method affiliates Other, net Subtotal Interest and dividends received Interest paid Income taxes paid Net cash provided by (used in) operating activities Cash flows from investing activities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Purchase of investment securities ó ïï ó (1,093) 6,764 482 (55) – (212) 235 (0) 53 0 (2) – (313) 3,530 (13) (2,962) 227 (11) – (146) (60) (51) – (1) 44 6,412 212 (233) (425) 5,965 (4,776) 3 (2) 1,718 6,269 337 (7) 156 (214) 277 (6) 127 – (13) 164 (1,434) 93 (98) 1,177 95 46 320 (8) (194) (306) (64) (2) (89) 8,346 214 (270) (32) 8,257 (3,821) 19 (6) Financial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877) (Unit: Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Proceeds from sale of investment securities Net decrease (increase) in short-term loans receivable Long-term loans advances Proceeds from collection of long-term loans Proceeds from liquidation of subsidiaries and Payments for fulfillment of asset retirement receivable affiliates obligations Other, net Net cash provided by (used in) investing activities Cash flows from financing activities Net increase (decrease) in short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Purchase of treasury shares Dividends paid Repayments of finance lease liabilities Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 1 324 (0) 671 – (0) (119) (3,898) 1,900 17,300 (12,550) (0) (333) (31) 6,284 0 8,352 7,222 15,575 11 170 – 645 74 – (243) (3,150) (1,850) 4,660 (8,403) (0) (265) (34) (5,894) 73 (713) 15,575 14,861 ó ïî ó Financial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877)(Segment Information) 1. Overview of reportable segments (1) Method of determining reportable segments The Company(2) Type of products and services belonging to each reportable segment The Paper asiness. (3) Matters concerning changes in reportable segments, etc. There are no applicable items. The matters for Preparing Consolidated Fmarket prices. 2. Method of calculating net sales, profit or loss, assets, and other items by reportable segment Profits of segments are based on operating income. Intersegment sales and transfers are based on prevailing ó ïí ó Financial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877)3. Information on net sales, profit or loss and other items by reportable segment Previous fiscal year (April 1, 2020 to March 31, 2021) (Unit: Millions of yen) Net sales Sales to external customers Intersegment sales and transfers Reportable Segment Paper and Pulp Power Manufacturing Generation Total Others (Note) Total 67,3607,13174,4917,44681,9383,2193,2199,71512,935Total 70,5807,13177,71117,16294,873Segment profit (loss) (2,150)1,562(587)139(448)manufacturing, transportation, equipment design, construction and repair, raw materials, paper cutting, sorting and segments and includes the nanoforest, paper products packaging, and Chuetsu Eco Products. Consolidated fiscal year under review (April 1, 2021 to March 31, 2022) Reportable Segment Pulp and Paper Power Manufacturing Generation Total (Unit: Millions of yen) Other (Note) Total 75,4296,45081,8808,22490,1043,7303,73010,95414,684Net sales Sales to external customers Intersegment sales and transfers Total 79,1596,45085,61019,179104,789Segment profit 1,3017172,0182462,264manufacturing, transportation, equipment design, construction and repair, raw materials, paper cutting, sorting and packaging, and Chuetsu Eco Products. ó ïì ó 4. Difference between the total amount of reported segments and the amount recorded in the consolidated financial statements and the main details of such difference (matters related to difference adjustment) Financial Results for FY2022, Chuetsu Pulp & Paper Co., Ltd. (3877)Previous consolidated fiscal year (April 1, 2020 to March 31, 2021) Net sales Amount (Unit: Millions of yen) Profit (loss) Amount (Unit: Millions of yen) Consolidated Fiscal Year Under Review (April 1, 2021 to March 31, 2022) Total of reportable segments Elimination of intersegment transactions Net sales in consolidated financial statements Total of reportable segments Income in Elimination of intersegment transactions Other adjustments Operating loss in consolidated financial statements Total of reportable segments Net sales Elimination of intersegment transactions Net sales in consolidated financial statements Total of reportable segments Profit Elimination of intersegment transactions Other adjustments Operating loss in consolidated financial statements 77,71117,162(12,935)81,938(587)1398416(347)85,61019,179(14,684)90,1042,0182468072,352 (Unit: Millions of yen) Amount (Unit: Millions of yen) Amount ó ïë ó