Member of the Financial Accounting Standards Foundation

Consolidated Financial Summary (for the six months ended September 30, 2018)

October 26, 2018

Company Name:Tokai Tokyo Financial Holdings, Inc.

Stock Listings: First sections of the Tokyo Stock Exchange and Nagoya Stock Exchange

Stock Code:

8616

Representative:

Tateaki Ishida, President & CEO

Contact:

Tetsuji Oono

URL:http://www.tokaitokyo-fh.jp/

Executive officer, General Manager - Finance Planning Departmen

Telephone: (03) 3517-8391

Expected date for submission of quarterly report: November 13, 2018 Scheduled day of commencing dividend payment: November 22, 2018 Supplementary explanation documents for quarterly earnings: Yes

Quarterly results briefing planned: Yes (for financial analysts and institutional investors)

(Figures are rounded down to the nearest one million yen and those in parentheses are negative figures.)

1. Consolidated Financial Results for the Six Months Ended September 30, 2018

(1) Consolidated Results of Operation

(Figures in percentages denote the year-on-year change.)

(Note) Comprehensive income

Six-month period ended September 30, 2018: 2,381 million yen [(86.6%)]

Six-month period ended September 30, 2017: 17,759 million yen [628.3%]

Net income per share

Diluted net income per share

Six months ended

September 30,2018

September 30,2017

yen 11.85 64.81

yen 11.84 64.78

(Note) At the end of the fiscal year ended March 31, 2018, Tokai Tokyo Financial Group finalized provisional accounting treatment related to the business combination.The consolidated financial statements for the year ended September 30, 2017 reflect the finalized provisional accounting treatment.

(2) Consolidated Financial Position

As of

September 30,2018

March 31,2018

(Reference) Shareholders' equity

Total assets

Net assets

Net assets per share

million yen

million yen

%

yen

987,218

171,095

17.1

653.13

964,533

174,849

17.9

668.18

September 30, 2018: 168,743 million yen

Equity ratio

March 31, 2018: 172,629 million yen

2. Dividends

(Base date)

Fiscal year

Ended March 31, 2018

Ending March 31, 2019

Ending March 31, 2019 (Forecast)

(Note) 1) Revision to the dividend forecast that has been disclosed lastly: None

2) Dividend forecast for the fiscal year ending March 31, 2019 has not been determined.

3. Forecast of Consolidated Operating Results for Fiscal 2018 (from April 1, 2018 to March 31, 2019)

The Group operates principally in the financial instruments business, and its operating results are likely to be affected by market fluctuations. Due to such nature of its business and consequential difficulty in predicting its performance, the Group does not disclose the forecast of operating results.

* Notes

  • (1) Important Changes in Subsidiaries during the Term (Changes Pursuant to the Subsidiaries that Lead to a Change in the Scope of Consolidation): None

    New : None Exclusion : None

  • (2) Application of Special Accounting Treatments in Preparing Quarterly Consolidated Financial Statements: None

  • (3) Changes in Accounting Policies or Estimates and Retrospective Restatements

    • 1) Changes in accounting policies in accordance with revision of accounting standards: None

    • 2) Changes in accounting policies other than item 1) above: None

    • 3) Change in accounting estimates: None

    • 4) Retrospective restatements: None

  • (4) Number of Shares Issued (Common Stock)

    • 1) Number of shares issued at the end of the term including treasury shares

      As of September 30, 2018: 270,582,115 As of March 31, 2018: 270,582,115

    • 2) Number of treasury shares at the end of the term

As of September 30, 2018:

12,222,607

As of March 31, 2018:

12,225,394

3) Average number of shares outstanding (for the six months)Six months ended September 30, 2018: 258,357,441

Six months ended September 30, 2017: 261,730,356

  • * This consolidated financial summary is exempt from certified public accountant and audit corporations

  • * Note to proper use of forecast of operating results and other special remarks

    Dividends for the fiscal year ending March 31, 2019 have not been determined because it is difficult to forecast operating results, as described similarly in "3.Forecast of Consolidated Operating Results for Fiscal 2018.''

  • * How to view supplementary explanation documents for quarterly earnings

Supplementary explanation documents for quarterly earnings will be available on both Timely Disclosure network and our websiteon Friday, October 26, 2018.

Consolidated Financial Statements

(1) Consolidated Balance Sheets

(Unit: million yen)

As of March 31, 2018

As of September 30, 2018

Assets

Current assets

Cash and deposits

Cash segregated as deposits

Cash segregated as deposits for customers

Cash segregated as deposits for others

Trading products

Trading securities and other

Derivatives

Trade date accrual

Margin transaction assets

Loans on margin transactions

Cash collateral pledged for securities borrowing on margin

transactions

Loans secured by securities

Cash collateral pledged for securities borrowed

Loans on Gensaki transactions

Advances paid

Short-term guarantee deposits

Short-term loans receivable

Short-term investment securities

Accrued income

Other

Allowance for doubtful accounts Total current assets Non-current assets

Property, plant and equipment

Intangible assets

Investments and other assets

Investment securities

Long-term guarantee deposits

Deferred tax assets

Net defined benefit asset

Other

Allowance for doubtful accounts Total non-current assets

90,594 56,101

45,830 41,630

45,000 40,900

830 730

388,099 364,273

384,823 362,043

3,276 2,229

- 27,567

57,297 57,952

52,161 37,127

5,135 20,824

289,117 345,884

289,117 27,494

318,389

1,170 386

15,411 13,042

157 243

3,000 3,000

2,417 2,721

9,058 5,791

(50) (35)

902,103

918,559

8,127 8,882

5,486 5,394

48,815 54,381

40,969 45,252

3,161 4,554

140 51

3,542 3,579

1,386 1,314

(385) (371)

Total assets

62,429 964,533

68,659 987,218

(Unit: million yen)

As of

As of

March 31, 2018

September 30, 2018

Liabilities

Current liabilities

Trading products

281,709

309,221

Trading securities and other

276,368

303,018

Derivatives

5,340

6,202

Trade date accrual

21,952

Margin transaction liabilities

19,413

15,051

Borrowings on margin transactions

17,879

12,348

Cash received for securities lending on margin transactions

1,534

2,703

Loans payable secured by securities

197,538

204,813

Cash received on debt credit transaction of securities

197,538

23,373

Borrowings on Gensaki transactions

181,439

Deposits received

35,794

43,914

Guarantee deposits received

12,794

10,474

Short-term loans payable

78,752

90,216

Short-term bonds payable

12,000

14,000

Current portion of bonds

29,594

37,831

Income taxes payable

4,090

802

Provision for bonuses

3,222

2,123

Provision for directors' bonuses

61

18

Other

7,583

4,646

Total current liabilities

704,507

733,114

Non-current liabilities

Bonds payable

16,200

17,458

Long-term loans payable

64,906

61,440

Deferred tax liabilities

1,716

1,678

Provision for directors' retirement benefits

63

97

Net defined benefit liability

208

198

Other

1,468

1,517

Total non-current liabilities

84,564

82,389

Reserves under special laws

Reserve for financial products transaction liabilities

611

617

Total reserves under special laws

611

617

Total liabilities

789,683

816,122

Net assets

Shareholders' equity

Capital stock

36,000

36,000

Capitalurplus

28,958

28,960

Retained earnings

108,761

105,621

Treasury shares

(6,188)

(6,187)

Total shareholders' equity

167,531

164,395

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

2,519

2,165

Foreign currency translation adjustment

(168)

(373)

Remeasurements of defined benefit plans

2,745

2,555

Total accumulated other comprehensive income

5,097

4,348

Share acquisition rights

556

607

Non-controlling interests

1,664

1,745

Total net assets

174,849

171,095

Total liabilities and net assets

964,533

987,218

(2) Consolidated Statements of Income and Comprehensive Income

Consolidated Statements of Income

(Six months ended September 30)

(Unit: million yen)Six months ended September 30, 2017

Six months ended September 30, 2018

Operating revenue

Commission received 16,378

Commission to consignees 7,991

Commission for underwriting, secondary distribution and solicitation for selling and others for professional investors Fee for offering, secondary distribution and solicitation for selling and others for professional investors

437 3,614

Other fees received 4,335

Net trading income 21,608

Financial revenue 1,843

Total operating revenue Financial expenses

Net operating revenue

Selling, general and administrative expenses

39,831 1,126 38,704

Trading related expenses 6,670

Personnel expenses 14,937

Real estate expenses 3,434

Office cost 3,963

Depreciation 930

Taxes and dues 817

Other 1,155

Total selling, general and administrative expenses Operating income

Non-operating income

31,909 6,795

Dividend income 303

Rent income 287

Share of profit of entities accounted for using equity method 721

Total non-operating income Non-operating expenses

Gain on investments in partnership Other

Loss on investments in partnership Foreign exchange losses

Other

Total non-operating expenses Ordinary income

14,736 5,895

518 3,389

4,933 18,474 2,632

35,842 1,128 34,714

6,145

15,023

3,699

3,962

1,072

659

1,085

31,648 3,066

266 245 415

143 96 1,553

71104 1,103

70 75

20 55

10 101 8,246

52 183 3,985

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Tokai Tokyo Financial Holdings Inc. published this content on 26 October 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 26 October 2018 02:46:02 UTC