Consolidated Financial Summary (for the six months ended September 30, 2021)

Member of the Financial Accounting Standards Foundation

Consolidated Financial Summary (for the six months ended September 30, 2021)

October 29, 2021

Company Name:

Tokai Tokyo Financial Holdings, Inc.

Stock Listings:

First sections of the Tokyo Stock Exchange and Nagoya Stock Exchange

Stock Code:

8616

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

Representative:

Ichirou Gouda, President

Contact:

Junichi Takahashi

General Manager - Finance Planning Department

Telephone: [phone]

Expected date for submission of quarterly report:

November 15, 2021

Scheduled day of commencing dividend payment:

November 25, 2021

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, 2021

(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

Six months ended

million yen

%

million yen

%

million yen

%

million yen

%

million yen

%

September 30,2021

40,543

25.5

39,428

27.5

5,654

77.8

7,113

76.7

9,910

267.2

September 30,2020

32,298

12.8

30,921

11.6

3,180

－

4,025

－

2,698

318.5

(Note) Comprehensive income	Six-month period ended September 30, 2021: 10,215 million yen [221.8%]
		Six-month period ended September 30, 2020: 3,174 million yen [-]
	Net income per share	Diluted net income
	per share
Six months ended	yen	yen
September 30,2021	39.90	39.80
September 30,2020	10.87	－

(Note) We post no figure of diluted net income per share for the 2nd Quarter of FYE March 2021 as the Company has no potential stock that has dilution effect.

(Note) From the 1st Quarter of FYE March, 2022 the Company has made changes in the presentation method. Therefore, the operating income of previous year's consolidated results of operation reflect that.

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio	Net assets per share
As of	million yen	million yen	%	yen
September 30,2021	1,521,658	184,651	11.3	692.23
March 31,2021	1,416,569	172,684	11.7	666.65

(Reference) Shareholders' equity September 30, 2021: 171,924 million yen March 31, 2021: 165,572 million yen

2. Dividends

(Base date)		Dividend per share
End of	End of	End of		End of year	Annual
	first quarter	second quarter	third quarter
Fiscal year	yen	yen	yen		yen	yen
Ended March 31, 2021	－	8.00	－		14.00	22.00
Ending March 31, 2022	－	10.00
Ending March 31, 2022			－		－	－
(Forecast)
(Note) 1) Revision to the dividend forecast that has been disclosed lastly: None
2) The dividend of 8.00 yen at the end of second quarter for the year ending March 31, 2021 includes commemorative dividend

of 2.00 yen.

3) The dividend of 14.00 yen at the end of year for the year ended March 31, 2021 includes commemorative dividend of 2.00 yen.

4) Dividend forecast for the fiscal year ending March 31, 2022 has not been determined.

3. Forecast of Consolidated Operating Results for Fiscal 2021 (from April 1, 2021 to March 31, 2022)

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): Yes

New : 2 companies (ACE Securities Co.,Ltd. , Maruhachi Securities Co.,Ltd. )

Exclusion : None

1. Application of Special Accounting Treatments in Preparing Quarterly Consolidated Financial Statements: None
2. Changes in Accounting Policies or Estimates and Retrospective Restatements
3. 1. Changes in accounting policies in accordance with revision of accounting standards: Yes
   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)
5. 1. Number of shares issued at the end of the term including treasury shares

	As of September 30, 2021:	260,582,115	As of March 31, 2021:	260,582,115
2)	Number of treasury shares at the end of the term
	As of September 30, 2021:	12,219,364	As of March 31, 2021:	12,218,314
3)	Average number of shares outstanding (for the six months)
	Six months ended September 30, 2021: 248,363,202	Six months ended September 30, 2020: 248,365,274

• This consolidated financial summary is not subject to certified public accountant's or audit corporation's review.
• Note to proper use of forecast of operating results and other special remarks

Dividends for the fiscal year ending March 31, 2022 have not been determined because it is difficult to forecast operating results, as described similarly in "3.Forecast of Consolidated Operating Results for Fiscal 2021.''

* 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 website on Friday, October 29, 2021.

Consolidated Financial Statements

(1) Consolidated Balance Sheets

		(Unit: million yen)
	As of	As of
	March 31, 2021	September 30, 2021
Assets
Current assets
Cash and deposits	83,589	82,546
Cash segregated as deposits	83,622	77,923
Cash segregated as deposits for customers	80,800	74,900
Cash segregated as deposits for others	2,821	3,023
Trading products	588,098	585,984
Trading securities and other	583,391	581,071
Derivatives	4,706	4,912
Margin transaction assets	100,450	156,177
Loans on margin transactions	34,362	47,100
Cash collateral pledged for securities borrowing on margin	66,087	109,077
transactions
Loans secured by securities	407,829	443,453
Cash collateral pledged for securities borrowed	28,756	49,818
Loans on Gensaki transactions	379,072	393,634
Advances paid	8,395	563
Short-term guarantee deposits	37,915	62,594
Short-term loans receivable	14,492	25,068
Accrued income	4,189	5,139
Other	14,196	9,435
Allowance for doubtful accounts	(101)	(105)
Total current assets	1,342,676	1,448,780
Non-current assets
Property, plant and equipment	10,740	10,951
Intangible assets	5,594	6,409
Investments and other assets	57,557	55,516
Investment securities	48,155	42,682
Long-term guarantee deposits	3,862	5,484
Deferred tax assets	35	68
Retirement benefit asset	4,446	6,307
Other	1,423	1,329
Allowance for doubtful accounts	(364)	(355)
Total non-current assets	73,893	72,878
Total assets	1,416,569	1,521,658

1

		(Unit: million yen)
	As of	As of
	March 31, 2021	September 30, 2021
Liabilities
Current liabilities
Trading products	379,293	367,622
Trading securities and other	370,371	356,920
Derivatives	8,921	10,702
Trade date accrual	9,240	14,806
Margin transaction liabilities	11,555	15,815
Borrowings on margin transactions	9,128	13,469
Cash received for securities lending on margin transactions	2,426	2,345
Borrowings secured by securities	368,671	397,611
Cash received on debt credit transaction of securities	4,123	37,393
Borrowings on Gensaki transactions	364,547	360,217
Deposits received	72,419	92,578
Guarantee deposits received	12,626	14,785
Short-term borrowings	244,786	277,055
Short-term bonds payable	16,000	16,000
Current portion of bonds payable	17,510	20,154
Income taxes payable	2,414	977
Provision for bonuses	2,283	2,214
Provision for directors' bonuses	57	26
Other	6,214	7,482
Total current liabilities	1,143,073	1,227,130
Non-current liabilities
Bonds payable	11,863	16,895
Long-term borrowings	84,200	87,600
Deferred tax liabilities	1,290	1,879
Provision for retirement benefits for directors (and other officers)	92	102
Retirement benefit liability	163	223
Other	2,566	2,475
Total non-current liabilities	100,176	109,175
Reserves under special laws
Reserve for financial instruments transaction liabilities	635	701
Total reserves under special laws	635	701
Total liabilities	1,243,884	1,337,006
Net assets
Shareholders' equity
Share capital	36,000	36,000
Capital surplus	24,587	24,587
Retained earnings	107,390	113,824
Treasury shares	(5,292)	(5,293)
Total shareholders' equity	162,685	169,118
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 Share acquisition rights

Non-controlling interests Total net assets

Total liabilities and net assets

1,490	1,234
(571)	(159)
1,967	1,730
2,886	2,805
442	471
6,669	12,256
172,684	184,651
1,416,569	1,521,658

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1. Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income
   (Six months ended September 30)

	(Unit: million yen)
Six months ended	Six months ended
September 30, 2020	September 30, 2021

Operating revenue

Commission received Brokerage commission

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

14,671	19,147
6,723	7,035
481	747
2,716	5,470

Other fees received	4,750	5,894
Net trading income	16,012	17,582
Financial revenue	1,614	3,813
Total operating revenue	32,298	40,543
Financial expenses	1,377	1,115
Net operating revenue	30,921	39,428
Selling, general and administrative expenses
Trading related expenses	4,694	6,402
Personnel expenses	13,400	16,085
Real estate expenses	3,376	3,875
Office expenses	3,253	4,100
Depreciation	1,516	1,389
Taxes and dues	669	901
Provision of allowance for doubtful accounts	6	－
Other	822	1,017
Total selling, general and administrative expenses	27,740	33,773
Operating income	3,180	5,654
Non-operating income
Dividend income	172	282
Share of profit of entities accounted for using equity method	345	957
Gain on investments in investment partnerships	381	281
Other	103	92
Total non-operating income	1,002	1,614
Non-operating expenses
Loss on investments in investment partnerships	145	115
Foreign exchange losses	8	6
Other	4	33
Total non-operating expenses	157	155
Ordinary income	4,025	7,113

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