Tokai Tokyo Financial : Consolidated Financial Summary (for the year ended March 31, 2019)

Member of the Financial Accounting Standards Foundation

Consolidated Financial Summary (for the year ended March 31, 2019)

		April 26, 2019
Company Name:	Tokai Tokyo Financial Holdings, Inc.
Stock Listings:	First sections of the Tokyo Stock Exchange and Nagoya Stock Exchange
Stock Code:	8616	URLhttp://www.tokaitokyo-fh.jp/
Representative:	Tateaki Ishida, President & CEO
Contact:	Yasuyoshi Oomi
	General Manager - Finance Planning Department
	Telephone: [phone]
Scheduled date for general meeting of shareholders:		June 26, 2019
Scheduled date for filing securities report:		June 26, 2019
Scheduled day of commencing dividend payment:		June 27, 2019
Supplementary explanation documents for earnings:		Yes
Earnings presentation for the fiscal year:		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 Year Ended March 31, 2019 (from April 1, 2018 to March 31, 2019)

(1) Consolidated Results of Operation							(Figures in percentages denote the year-on-year change.)
	Operating revenue		Net operating revenue		Operating income		Ordinary income		Profit attributable to
									owners of parent
Year ended	million yen	%	million yen	%	million yen	%	million yen	%	million yen	%
March 31,2019	64,772	(24.0)	62,553	(24.6)	(391)	－	932	(95.5)	1,079	(95.7)
March 31,2018	85,261	30.3	82,919	30.1	17,446	83.7	20,939	57.8	25,397	111.8
(Note) Comprehensive income:			March 31, 2019:	(1,771) million yen [－%]
			March 31, 2018:	27,436 million yen [156.2%]
	Net income per share		Diluted net income		Return on equity		Return on assets		Operating income/
			per share						Operating revenue
Year ended		yen		yen		%		%		%
March 31,2019		4.18		4.18		0.6		0.1		(0.6)
March 31,2018		97.27		97.18		15.5		2.5		20.5

(Reference) Share of profit of entities accounted for using equity method March 31, 2019: (61) million yen March 31, 2018: 1,963 million yen

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio		Net asset per share
As of	million yen	million yen		%	yen
March 31,2019	1,391,076	164,300		11.6	625.05
March 31,2018	964,533	174,849		17.9	668.18
(Reference) Shareholders' equity		March 31, 2019: 161,491 million yen		March 31, 2018: 172,629 million yen
(3) Consolidated Cash Flows Position
	Cash flows	Cash flows	Cash flows		Cash and
	from operation	from investment	from financing		cash equivalents
Year ended	million yen	million yen		million yen	million yen
March 31,2019	(72,750)	(9,615)		39,695	46,274
March 31,2018	19,332	(588)		(1,617)	89,204

2. Dividends

		Dividend per share				Total cash	Dividends	Net assets
(Base date)	End of first	End of second	End of third	End of year	Annual	dividends	payout ratio	dividend ratio
	quarter	quarter	quarter			(annual)	(consolidated)	(consolidated)
	yen	yen	yen	yen	yen	million yen	%	%
Ended March 31, 2018	－	14.00	－	24.00	38.00	9,865	39.1	6.0
Ended March 31, 2019	－	12.00	－	4.00	16.00	4,133	382.8	2.5
Ending March 31,	－	－	－	－	－		－
2020

3. Forecast of Consolidated Operating Results for Fiscal 2019 (from April 1, 2019 to March 31, 2020)

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.

4.Others

(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)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

(3)Number of Shares Issued (Common Stock)

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

	As of March 31, 2019:	270,582,115	As of March 31, 2018:	270,582,115
2)	Number of treasury shares at the end of the term
	As of March 31, 2019:	12,215,435	As of March 31, 2018:	12,225,394
3)	Average number of shares outstanding
	Year ended March 31, 2019: 258,361,178		Year ended March 31, 2018: 261,106,441

(Reference)

Non-consolidated Financial Results for the Year Ended March 31, 2019 (from April 1, 2018 to March 31, 2019)

(1) Non-consolidated Results of Operations					(Figures in percentages denote the year-on-year change.)
	Operating revenue		Operating income		Ordinary income		Net income
Year ended	million yen	%	million yen	%	million yen	%	million yen	%
March 31,2019	15,737	12.3	7,252	16.2	9,414	27.6	8,611	21.5
March 31,2018	14,014	3.7	6,239	(4.8)	7,380	(6.9)	7,090	(13.9)
	Net income per share		Diluted net income
			per share
Year ended		yen		yen
March 31,2019		33.33		33.32
March 31,2018		27.15		27.13
(2) Non-consolidated financial position
	Total assets		Net assets		Equity ratio		Net assets per share
As of		million yen		million yen		%		yen
March 31,2019		210,380		106,151		50.2		408.76
March 31,2018		210,412		107,440		50.8		413.71
(Reference) Shareholders' equity		March 31, 2019: 105,611 million yen				March 31, 2018: 106,884 million yen

*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, 2020 have not been determined because it is difficult to forecast operating results, as described similarly in "3.Forecast of Consolidated Operating Results for Fiscal 2019.''

* How to view supplementary explanation documents for earnings

Supplementary explanation documents for earnings will be available on both Timely Disclosure network and our website on Friday, April 26, 2019.

Consolidated Financial Statements

(1) Consolidated Balance Sheets

		(Unit: million yen)
	As of	As of
	March 31, 2018	March 31, 2019
Assets
Current assets
Cash and deposits	90,594	47,920
Cash segregated as deposits	45,830	42,030
Cash segregated as deposits for customers	45,000	41,400
Cash segregated as deposits for others	830	630
Trading products	388,099	657,524
Trading securities and other	384,823	654,224
Derivatives	3,276	3,300
Margin transaction assets	57,297	49,406
Loans on margin transactions	52,161	30,929
Cash collateral pledged for securities borrowing on margin	5,135	18,477
transactions
Loans secured by securities	289,117	492,858
Cash collateral pledged for securities borrowed	289,117	39,663
Loans on Gensaki transactions	－	453,194
Advances paid	1,170	3,412
Short-term guarantee deposits	15,411	14,927
Short-term loans receivable	157	219
Short-term investment securities	3,000	－
Accrued income	2,417	2,820
Other	9,058	12,442
Allowance for doubtful accounts	(50)	(30)
Total current assets	902,103	1,323,532
Non-current assets
Property, plant and equipment	8,127	12,037
Buildings	2,538	4,529
Equipment	1,811	3,738
Land	3,777	3,769
Intangible assets	5,486	5,218
Goodwill	2,060	1,845
Software	2,198	2,456
Telephone subscription right	36	36
Other	1,190	880
Investments and other assets	48,815	50,288
Investment securities	40,969	42,090
Long-term guarantee deposits	3,161	4,608
Deferred tax assets	140	33
Net defined benefit asset	3,542	2,397
Other	1,386	1,526
Allowance for doubtful accounts	(385)	(366)
Total non-current assets	62,429	67,544
Total assets	964,533	1,391,076

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		(Unit: million yen)
	As of	As of
	March 31, 2018	March 31, 2019
Liabilities
Current liabilities
Trading products	281,709	546,499
Trading securities and other	276,368	540,357
Derivatives	5,340	6,142
Trade date accrual	21,952	15,973
Margin transaction liabilities	19,413	11,655
Borrowings on margin transactions	17,879	9,627
Cash received for securities lending on margin transactions	1,534	2,028
Loans payable secured by securities	197,538	345,299
Cash received on debt credit transaction of securities	197,538	17,788
Borrowings on Gensaki transactions	－	327,510
Deposits received	35,794	34,723
Guarantee deposits received	12,794	9,733
Short-term loans payable	78,752	123,967
Short-term bonds payable	12,000	16,000
Current portion of bonds	29,594	24,443
Income taxes payable	4,090	348
Provision for bonuses	3,222	2,016
Provision for directors' bonuses	61	－
Other	7,583	7,065
Total current liabilities	704,507	1,137,726
Non-current liabilities
Bonds payable	16,200	17,573
Long-term loans payable	64,906	68,129
Deferred tax liabilities	1,716	388
Provision for directors' retirement benefits	63	75
Net defined benefit liability	208	191
Other	1,468	2,073
Total non-current liabilities	84,564	88,431
Reserves under special laws
Reserve for financial products transaction liabilities	611	618
Total reserves under special laws	611	618
Total liabilities	789,683	1,226,776
Net assets
Shareholders' equity
Capital stock	36,000	36,000
Capital ｓurplus	28,958	28,961
Retained earnings	108,761	100,540
Treasury shares	(6,188)	(6,183)
Total shareholders' equity	167,531	159,318
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	2,519	1,077
Foreign currency translation adjustment	(168)	(405)
Remeasurements of defined benefit plans	2,745	1,500
Total accumulated other comprehensive income	5,097	2,172
Share acquisition rights	556	539
Non-controlling interests	1,664	2,268
Total net assets	174,849	164,300
Total liabilities and net assets	964,533	1,391,076

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(2)Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income

	(Unit: million yen)
Year ended	Year ended
March 31, 2018	March 31, 2019

Operating revenue

Commission received Commission to consignees

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

35,907	28,954
17,415	10,729
811	1,247
7,844	6,951

Other fees received	9,836	10,025
Net trading income	45,095	30,280
Financial revenue	4,258	5,537
Total operating revenue	85,261	64,772
Financial expenses	2,342	2,219
Net operating revenue	82,919	62,553
Selling, general and administrative expenses
Trading related expenses	13,827	11,951
Personnel expenses	31,110	29,544
Real estate expenses	6,797	7,845
Office cost	8,043	7,994
Depreciation	1,944	2,321
Taxes and dues	1,521	1,273
Other	2,227	2,014
Total selling, general and administrative expenses	65,472	62,945
Operating income (loss)	17,446	(391)
Non-operating income
Dividend income	699	714
Rent income	518	500
Share of profit of entities accounted for using equity method	1,963	－
Gain on investments in partnership	289	340
Other	222	157
Total non-operating income	3,693	1,712
Non-operating expenses
Share of loss of entities accounted for using equity method	－	61
Loss on investments in partnership	127	171
Foreign exchange losses	18	14
Settlement package	5	88
Other	48	51
Total non-operating expenses	200	388
Ordinary income	20,939	932

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