Member of the Financial Accounting Standards Foundation

Consolidated Financial Summary (for the three months ended June 30, 2020)

July 31, 2020

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:

Tateaki Ishida, President & CEO

Contact:

Junichi Takahashi

General Manager - Finance Planning Department

Telephone: +81-(0)3-3517-8391

Expected date for submission of quarterly report:

August 12, 2020

Scheduled day of commencing dividend payment:

Supplementary explanation documents for quarterly earnings: Yes

Quarterly results briefing planned:

None

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

1. Consolidated Financial Results for the Three Months Ended June 30, 2020

(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

Three months ended

million yen

%

million yen

%

million yen

%

million yen

%

million yen

%

June 30,2020

15,365

14.0

14,696

13.1

1,014

1,283

849

231.7

June 30,2019

13,482

(24.5)

12,992

(24.7)

(2,883)

(2,666)

256

(83.5)

(Note) Comprehensive income

Three-month period ended June 30, 2020:

1,410 million yen [-]

Three-month period ended June 30, 2019:

(199) million yen [-]

Net income per share

Diluted net income

per share

Three months ended

yen

yen

June 30,2020

3.42

June 30,2019

1.00

(Note) We post no figure of diluted net income per share as the Company has no potential stock that has dilution effect.

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

Net assets per share

As of

million yen

million yen

%

yen

June 30,2020

1,224,218

162,038

12.8

630.51

March 31,2020

1,113,313

160,404

14.1

630.24

(Reference) Shareholders' equity

June 30, 2020: 156,597 million yen

March 31, 2020: 156,530 million yen

2. Dividends

Dividend per share

(Base date)

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, 2020

4.00

4.00

8.00

Ending March 31, 2021

Ending March 31, 2021

(Forecast)

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

2) Dividend forecast for the fiscal year ending March 31, 2021 has not been determined.

3. Forecast of Consolidated Operating Results for Fiscal 2020 (from April 1, 2020 to March 31, 2021)

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.

Three months ended June 30, 2019: 255,640,958
  • 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

  1. Application of Special Accounting Treatments in Preparing Quarterly Consolidated Financial Statements: 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

(4) Number of Shares Issued (Common Stock)

1)

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

As of June 30, 2020:

260,582,115

As of March 31, 2020:

2)

Number of treasury shares at the end of the term

As of June 30, 2020:

12,216,793

As of March 31, 2020:

  1. Average number of shares outstanding (for the three months) Three months ended June 30, 2020: 248,365,432

260,582,115

12,216,596

  • 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, 2021 have not been determined because it is difficult to forecast operating results, as described similarly in "3.Forecast of Consolidated Operating Results for Fiscal 2020.''

* 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, July 31, 2020.

Consolidated Financial Statements

(1) Consolidated Balance Sheets

(Unit: million yen)

As of

As of

March 31, 2020

June 30, 2020

Assets

Current assets

Cash and deposits

64,745

60,659

Cash segregated as deposits

51,122

58,821

Cash segregated as deposits for customers

49,300

56,800

Cash segregated as deposits for others

1,821

2,021

Trading products

422,351

479,270

Trading securities and other

407,261

473,726

Derivatives

15,090

5,544

Trade date accrual

1,136

Margin transaction assets

99,267

47,651

Loans on margin transactions

25,777

27,852

Cash collateral pledged for securities borrowing on margin

73,489

19,798

transactions

Loans secured by securities

341,868

452,718

Cash collateral pledged for securities borrowed

31,248

103,235

Loans on Gensaki transactions

310,620

349,482

Advances paid

203

710

Short-term guarantee deposits

47,107

36,701

Short-term loans receivable

2,940

3,188

Accrued income

2,666

2,234

Other

11,296

11,357

Allowance for doubtful accounts

(27)

(29)

Total current assets

1,043,541

1,154,420

Non-current assets

Property, plant and equipment

12,038

11,782

Intangible assets

5,370

5,338

Investments and other assets

52,362

52,676

Investment securities

45,047

45,170

Long-term guarantee deposits

4,112

4,117

Deferred tax assets

252

374

Retirement benefit asset

1,783

1,866

Other

1,527

1,508

Allowance for doubtful accounts

(362)

(361)

Total non-current assets

69,772

69,797

Total assets

1,113,313

1,224,218

- 1 -

(Unit: million yen)

As of

As of

March 31, 2020

June 30, 2020

Liabilities

Current liabilities

Trading products

341,416

424,972

Trading securities and other

330,161

414,589

Derivatives

11,255

10,382

Trade date accrual

44,102

Margin transaction liabilities

8,943

11,276

Borrowings on margin transactions

6,876

6,998

Cash received for securities lending on margin transactions

2,067

4,278

Borrowings secured by securities

211,557

276,689

Cash received on debt credit transaction of securities

12,239

2,268

Borrowings on Gensaki transactions

199,318

274,421

Deposits received

46,489

57,028

Guarantee deposits received

13,692

13,839

Short-term borrowings

135,680

137,603

Short-term bonds payable

16,000

17,500

Current portion of bonds payable

21,101

19,410

Income taxes payable

695

326

Provision for bonuses

1,521

775

Other

12,305

5,114

Total current liabilities

853,507

964,538

Non-current liabilities

Bonds payable

13,496

11,935

Long-term borrowings

81,909

81,905

Deferred tax liabilities

55

41

Provision for retirement benefits for directors (and other officers)

63

68

Retirement benefit liability

181

178

Other

3,075

3,016

Total non-current liabilities

98,781

97,145

Reserves under special laws

Reserve for financial instruments transaction liabilities

619

495

Total reserves under special laws

619

495

Total liabilities

952,908

1,062,179

Net assets

Shareholders' equity

Share capital

36,000

36,000

Capital surplus

24,587

24,587

Retained earnings

101,276

101,132

Treasury shares

(5,292)

(5,292)

Total shareholders' equity

156,572

156,428

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

(151)

323

Foreign currency translation adjustment

(390)

(582)

Remeasurements of defined benefit plans

500

429

Total accumulated other comprehensive income

(41)

169

Share acquisition rights

478

499

Non-controlling interests

3,395

4,941

Total net assets

160,404

162,038

Total liabilities and net assets

1,113,313

1,224,218

- 2 -

  1. Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income
    (Three months ended June 30)

(Unit: million yen)

Three months ended

Three months ended

June 30, 2019

June 30, 2020

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

6,3527,344

2,3713,679

231151

1,6241,182

Other fees received

2,126

2,331

Net trading income

6,564

7,234

Financial revenue

565

785

Total operating revenue

13,482

15,365

Financial expenses

490

668

Net operating revenue

12,992

14,696

Selling, general and administrative expenses

Trading related expenses

2,867

2,147

Personnel expenses

7,412

6,590

Real estate expenses

2,089

1,818

Office cost

1,883

1,655

Depreciation

715

772

Taxes and dues

321

304

Provision of allowance for doubtful accounts

1

Other

586

391

Total selling, general and administrative expenses

15,875

13,681

Operating income (loss)

(2,883)

1,014

Non-operating income

Dividend income

110

130

Rental income from buildings

116

121

Share of profit of entities accounted for using equity method

7

Gain on investments in investment partnerships

3

1

Other

171

34

Total non-operating income

401

294

Non-operating expenses

Share of loss of entities accounted for using equity method

137

Loss on investments in investment partnerships

5

10

Foreign exchange losses

12

Other

41

3

Total non-operating expenses

184

26

Ordinary income (loss)

(2,666)

1,283

- 3 -

(Unit: million yen)

Three months ended

Three months ended

June 30, 2019

June 30, 2020

Extraordinary income

Gain on sales of non-current assets Gain on sales of investment securities Gain on change in equity

Reversal of reserve for financial instruments transaction liabilities

Total extraordinary income

Extraordinary losses

Loss on sales of non-current assets

Impairment loss

Loss on sales of investment securities

Loss on valuation of investment securities

Total extraordinary losses Income (loss) before income taxes Income taxes-current

Income taxes for prior periods Income taxes-deferred

Total income taxes Profit

Profit (loss) attributable to non-controlling interests Profit attributable to owners of parent

79

102

1

2,054

0

123

2,236

124

12

0

36

1

213

50

213

(480)

1,194

21

121

(67)

(685)

(126)

(731)

(4)

250

1,198

(5)

349

256

849

- 4 -

Consolidated Statements of Comprehensive Income (Three months ended June 30)

(Unit: million yen)

Three months ended

Three months ended

June 30, 2019

June 30, 2020

Profit

250

1,198

Other comprehensive income

Valuation difference on available-for-sale securities

(421)

446

Foreign currency translation adjustment

61

(192)

Remeasurements of defined benefit plans, net of tax

(100)

(64)

Share of other comprehensive income of entities accounted

10

22

for using equity method

Total other comprehensive income

(450)

211

Comprehensive income

(199)

1,410

(Comprehensive income attributable to)

Owners of parent

(194)

1,061

Non-controlling interests

(5)

349

- 5 -

Supplementary Information

  1. Breakdown of Commission Received and Net Trading Income
  • Commission received

() By item

(Unit: million yen)

Three months

Three months

Yr/Yr

ended June 30,

ended June 30,

Increase

% change

2019

2020

(Decrease)

Brokerage commission

2,371

3,679

1,307

55.1

%

Stocks

2,264

3,495

1,231

54.4

Bonds

9

5

(3)

(38.1)

Beneficiary certificates

97

177

80

82.1

Commission for underwriting, secondary

distribution and solicitation for selling and

231

151

(79)

(34.3)

others for professional investors

Stocks

69

70

1

2.5

Bonds

162

81

(81)

(50.0)

Fee for offering, secondary distribution

and solicitation for selling and others for

1,624

1,182

(441)

(27.2)

professional investors

Beneficiary certificates

1,611

1,177

(433)

(26.9)

Other fees received

2,126

2,331

205

9.6

Beneficiary certificates

1,052

830

(221)

(21.1)

Total

6,352

7,344

991

15.6

() By product

(Unit: million yen)

Three months

Three months

Yr/Yr

ended June 30,

ended June 30,

Increase

% change

2019

2020

(Decrease)

Stocks

2,346

3,582

1,236

52.7

%

Bonds

186

93

(92)

(49.7)

Beneficiary certificates

2,761

2,186

(575)

(20.8)

Others

1,057

1,481

423

40.0

Total

6,352

7,344

991

15.6

Net trading income

(Unit: million yen)

Three months

Three months

Yr/Yr

ended June 30,

ended June 30,

Increase

% change

2019

2020

(Decrease)

Stocks

3,676

5,387

1,710

46.5

%

Bonds and Forex

2,887

1,847

(1,039)

(36.0)

Total

6,564

7,234

670

10.2

- 6 -

(2) Comparative Quarterly Consolidated Statements of Income

(Unit: million yen)

Fiscal 2019

Fiscal 2020

1st quarter

2nd quarter

3rd quarter

4th quarter

1st quarter

Apr. 1, 2019 -

Jul. 1, 2019 -

Oct. 1, 2019 -

Jan. 1, 2020 -

Apr. 1, 2020 -

Jun. 30, 2019

Sep. 30, 2019

Dec. 31, 2019

Mar. 31, 2020

Jun. 30, 2020

Operating revenues

Commission received

6,352

6,922

8,609

7,287

7,344

Brokerage commission

2,371

2,597

4,041

3,229

3,679

(Stocks)

2,264

2,172

3,784

2,960

3,495

Commission for underwriting, secondary

distribution and solicitation for selling and

231

201

202

67

151

others for professional investors

Fee for offering, secondary distribution

and solicitation for selling and others for

1,624

1,521

1,870

1,502

1,182

professional investors

(Beneficiary certificates)

1,611

1,519

1,864

1,501

1,177

Other fees received

2,126

2,602

2,494

2,486

2,331

(Beneficiary certificates)

1,052

1,024

999

921

830

Net trading income

6,564

7,306

8,400

7,239

7,234

(Stocks)

3,676

4,152

5,247

934

5,387

(Bonds and Forex)

2,887

3,153

3,153

6,304

1,847

Financial revenue

565

927

656

862

785

Total operating revenue

13,482

15,156

17,665

15,389

15,365

Financial expenses

490

452

452

531

668

Net operating revenue

12,992

14,703

17,213

14,858

14,696

Selling, general and administrative expenses

Trading related expenses

2,867

2,709

2,955

2,853

2,147

Personnel expenses

7,412

6,728

6,873

6,814

6,590

Real estate expenses

2,089

1,814

1,903

1,775

1,818

Office cost

1,883

2,047

1,879

1,705

1,655

Depreciation

715

773

801

936

772

Taxes and dues

321

366

293

358

304

Provision of allowance for doubtful

1

accounts

Other

586

398

340

386

391

Total selling, general and administrative

15,875

14,837

15,048

14,830

13,681

expenses

Operating income

(2,883)

(134)

2,165

27

1,014

Non-operating income

401

513

217

837

294

Share of profit of entities accounted for

7

using equity method

Other

401

513

217

837

287

Non-operating expenses

184

246

(142)

158

26

Share of loss of entities accounted for

137

81

(173)

47

using equity method

Other

46

164

30

110

26

Ordinary income

(2,666)

133

2,525

707

1,283

Extraordinary income

2,236

69

166

64

124

Extraordinary losses

50

16

98

22

213

Income before income taxes

(480)

186

2,594

749

1,194

Income taxes-current

(45)

95

35

142

121

Income taxes-deferred

(685)

(336)

598

484

(126)

Profit

250

428

1,960

122

1,198

Profit attributable to non-controlling interests

(5)

39

98

(133)

349

Profit attributable to owners of parent

256

388

1,862

256

849

- 7 -

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Tokai Tokyo Financial Holdings Inc. published this content on 31 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 July 2020 02:05:04 UTC