Tokushu Tokai Paper : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2022 (unaudited)

Summary of Consolidated Financial Results

for the Three Months Ended June 30, 2022 (unaudited)

(Based on Japanese GAAP)

Company name:	Tokushu Tokai Paper Co., Ltd.
Stock exchange listings:	Tokyo
Code number:	3708
Representative:	President and Chief Executive Officer
For inquiry:	Senior General Manager

Quarterly securities report issuing date:

Dividend payment date:

Availability of support documentation:

Holding of financial result briefing:

August 10, 2022

URL https://www.tt-paper.co.jp

Yuji Matsuda
Hiro Mochizuki	TEL [phone]

August 10, 2022

－

No

No

(All yen figures are rounded down to the nearest one million yen)

1. Consolidated Financial Results for the Three Months Ended June 30, 2022 (April 1, 2022 - June 30, 2022)

(1) Consolidated Operating Results

(% represents the change from the same period in the previous fiscal year)

	Net sales				Operating income	Ordinary income	Profit attributable to
				owners of parent
Three Months ended	Millions of yen		%		Millions of yen	%	Millions of yen	%	Millions of yen	%
June 30, 2022	21,068		11.9		802	(31.3)	1,722	(6.5)	2,587	76.3
June 30, 2021	18,820		5.4		1,167	118.8	1,842	36.8	1,467	(39.7)
Note: Comprehensive income
Three Months ended June 30, 2022				1,057 million yen	(17.5)%
Three Months ended June 30, 2021				1,282 million yen	8.2%
	Basic earnings		Diluted earnings
	per share			per share
Three Months ended	Yen				Yen
June 30, 2022	213.81			212.91
June 30, 2021	109.78			109.31

(2) Consolidated Financial Position

	Total assets		Net assets	Equity ratio
	Millions of yen		Millions of yen	%
As of June 30, 2022	120,445		77,831	59.4
As of March 31, 2022	125,430		78,562	57.5
Reference: Equity	As of June 30, 2022	71,489 million yen
	As of March 31, 2022	72,129 million yen

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2. Dividends

		Annual Dividends per share
	1st quarter	2nd quarter	3rd quarter	End of	Total
	end	end	end	fiscal year
Fiscal year ended	Yen	Yen	Yen	Yen	Yen
March 31, 2022	－	50.00	－	70.00	120.00
March 31, 2023	－
Fiscal year ending		50.00		50.00	100.00
March 31, 2023		－
(Forecast)

Note: Revision to dividend forecasts published most recently: No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 - March 31, 2023)

(% represents the change from the same period in the previous fiscal year)

	Net sales		Operating income	Ordinary income	Profit attributable to	Basic earnings
		owners of parent	per share
	Millions of yen	%	Millions of yen	% Millions of yen	% Millions of yen	%	Yen
Full fiscal year	87,000	7.8	3,100	(26.7)	4,000	(30.2)	3,900	(25.7)	294.12

Note: Revision to financial forecasts published most recently: No

4. Others

1. Changes in significant subsidiaries during the period under review

(changes in specified subsidiaries resulting in changes in scope of consolidation): No

New-

Eliminated-

[2] Changes in accounting principles, changes in accounting estimates and restatements

1)	Changes in accounting policies due to the revision of accounting standards:	Yes
2)	Changes in accounting policies other than 1) above:	Yes
3)	Changes in accounting estimates:	Yes
4)	Retrospective restatements:	No

[3] Number of issued shares (common shares)

1. Number of issued shares (including treasury shares) as of:

June 30, 2022	14,900,000 shares
March 31, 2022	14,900,000 shares

1. Number of treasury shares as of:

June 30, 2022	2,877,755 shares
March 31, 2022	2,635,724 shares

(iii) Average number of shares during the period:

Three months ended June 30, 2022	12,102,768 shares
Three months ended June 30, 2021	13,366,040 shares

*These financial results are outside the scope of audit by certified public accountants or accounting auditors.

*Explanations pertaining to appropriate use of information concerning future forecasts

The operating results forecasts and certain other statements contained in this document are forward-looking statements, which are rationally determined based on information available to the company at the time the results were announced. Actual performance may differ substantially from these projections due to fluctuations in the economy or a variety of other known and unknown factor.

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Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheets

		(Millions of Yen)
	As of March 31, 2022	As of June 30, 2022
Assets
Current assets
Cash and deposits	12,058	9,484
Notes and accounts receivable - trade, and contract assets	26,280	27,342
Merchandise and finished goods	4,189	4,622
Work in process	772	966
Raw materials and supplies	5,437	5,130
Other	702	677
Allowance for doubtful accounts	(17)	(18)
Total current assets	49,423	48,205
Non-current assets
Property, plant and equipment
Buildings and structures, net	17,067	16,891
Machinery, equipment and vehicles, net	29,036	28,523
Land	11,288	11,288
Other, net	1,495	1,861
Total property, plant and equipment	58,888	58,563
Intangible assets
Goodwill	1,129	1,093
Other	359	337
Total intangible assets	1,488	1,431
Investments and other assets
Investment securities	13,939	10,069
Deferred tax assets	593	1,115
Other	1,138	1,102
Allowance for doubtful accounts	(41)	(41)
Total investments and other assets	15,630	12,245
Total non-current assets	76,006	72,240
Total assets	125,430	120,445

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		(Millions of Yen)
	As of March 31, 2022	As of June 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	11,020	11,203
Short-term loans payable	10,615	8,615
Current portion of long-term loans payable	4,808	4,594
Current portion of bonds	70	70
Income taxes payable	939	479
Provision for bonuses	437	236
Other	7,038	6,244
Total current liabilities	34,930	31,444
Non-current liabilities
Bonds payable	350	332
Long-term loans payable	8,949	8,196
Deferred tax liabilities	516	529
Provision for directorsʼ retirement benefits	79	68
Provision for environmental measures	50	50
Net defined benefit liability	1,270	1,274
Asset retirement obligations	648	647
Other	73	69
Total non-current liabilities	11,937	11,169
Total liabilities	46,867	42,614
Net assets
Shareholdersʼ equity
Capital stock	11,485	11,485
Capital surplus	10,922	10,915
Retained earnings	56,056	57,786
Treasury shares	(8,961)	(9,765)
Total shareholdersʼ equity	69,502	70,421
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	2,636	1,071
Deferred gains or losses on hedges	－	(0)
Remeasurements of defined benefit plans	(10)	(3)
Total accumulated other comprehensive income	2,626	1,067
Share acquisition rights	164	117
Non-controlling interests	6,268	6,224
Total net assets	78,562	77,831
Total liabilities and net assets	125,430	120,445

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1. Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of ComprehensiveIncome
   Quarterly Consolidated Statements of Income

		(Millions of Yen)
	Three Months ended	Three Months ended
	June 30, 2021	June 30, 2022
Net sales	18,820	21,068
Cost of sales	15,814	18,454
Gross profit	3,006	2,613
Selling, general and administrative expenses	1,838	1,811
Operating income	1,167	802
Non-operating income
Interest income	0	0
Dividend income	136	143
Rent income	32	32
Insurance income	13	16
Share of profit of entities accounted for using equity method	496	705
Other	55	75
Total non-operating income	734	972
Non-operating expenses
Interest expenses	35	35
Other	24	16
Total non-operating expenses	59	51
Ordinary income	1,842	1,722
Extraordinary income
Gain on sales of non-current assets	3	0
Gain on sales of investment securities	－	1,758
National subsidies	84	－
Other	4	－
Total extraordinary income	92	1,759
Extraordinary losses
Loss on sales of non-current assets	－	0
Loss on retirement of non-current assets	10	32
Total extraordinary losses	10	32
Profit before income taxes	1,924	3,449
Income taxes - current	246	672
Income taxes - deferred	183	160
Total income taxes	429	832
Profit	1,495	2,617
Profit (loss) attributable to non-controlling interests	27	29
Profit attributable to owners of parent	1,467	2,587

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