Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2022
(unaudited) (Based on Japanese GAAP)
November 14, 2022
Company name:

Tokushu Tokai Paper Co., Ltd.

Stock exchange listings: Tokyo
Code number:

3708

URL

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

Representative:

President and Chief Executive Officer

Yuji Matsuda

For inquiry:

Senior General Manager

Hiro Mochizuki

TEL +81-3-3281-8581

Quarterly securities report issuing date:November 14, 2022

Dividend payment date:

December 5, 2022

Availability of support documentation:

Yes
Scheduled (for analysts and institutional investors)

Holding of financial result briefing:(All yen figures are rounded down to the nearest one million yen)
1. Consolidated Financial Results for the Six Months Ended September 30, 2022 (April 1, 2022 – September 30,2022)(1) Consolidated Operating Results(% represents the change from the same period in the previous fiscal year)
Net sales
Six Months ended

Millions of yen

Operating income% Millions of yen

Ordinary income% Millions of yen

Profit attributable toowners of parent% Millions of yen%

September 30, 2022

42,071

8.3

1,337 (40.2)

2,549 (18.8)

3,150(8.8)

September 30, 2021

38,839

5.9

2,236

158.8

3,140

3,455

13.0

1,585 million yen
3,705 million yen(57.2)%
105.6%

44.2

Note: Comprehensive income
Six Months ended September 30, 2022
Six Months ended September 30, 2021
Basic earnings
per share
Yen

Diluted earnings
per share
Yen

September 30, 2022

262.23261.26

September 30, 2021

258.40257.37Six Months ended(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

Millions of yen%

As of September 30, 2022

119,745

77,97059.8

As of March 31, 2022

125,430

78,562

57.5

Reference: Equity

As of September 30, 2022
As of March 31, 2022

―1―Equity ratio

71,607 million yen
72,129 million yen

2. Dividends
Annual Dividends per sharestnd

1 quarter 2 quarter 3rd quarter End offiscal year
end
end
end

Total

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

March 31, 2022

－

50.00

－

70.00

120.00March 31, 2023

－

50.00
－

50.00

100.00Fiscal year ending
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
Millions of yen

Full fiscal year

87,000Operating income% Millions of yen
7.8

Profit attributable toowners of parent% Millions of yen%

Ordinary income% Millions of yen

1,300 (69.3)

4,000 (30.2)

Basic earnings
per shareYen

3,900 (25.7)

324.57

Note: Revision to financial forecasts published most recently: Yes

4. Others[1] Changes in significant subsidiaries during the period under review(changes in specified subsidiaries resulting in changes in scope of consolidation): NoNew–Eliminated–[2] Changes in accounting principles, changes in accounting estimates and restatements
1) Changes in accounting policies due to the revision of accounting standards:
2) Changes in accounting policies other than 1) above:3) Changes in accounting estimates:
4) Retrospective restatements:

Yes
Yes
Yes
No

[3] Number of issued shares (common shares)(i) Number of issued shares (including treasury shares) as of:September 30, 2022
14,900,000 shares
March 31, 2022
14,900,000 shares(ii) Number of treasury shares as of:
September 30, 2022
3,005,284 shares
March 31, 2022
2,635,724 shares(iii) Average number of shares during the period:
Six months ended September 30, 2022
12,016,001 shares
Six months ended September 30, 2021
13,371,851 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 theeconomy or a variety of other known and unknown factor.

―2―

Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of Yen)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets
Merchandise and finished goods
Work in processRaw materials and supplies
Other
Allowance for doubtful accounts

As of March 31, 2022

As of September 30, 2022

12,05826,280
4,189
772
5,437
702

8,858
26,733
4,480
958
5,612
742

(17)

(16)

49,42347,370

Buildings and structures, net

17,067

16,677

Machinery, equipment and vehicles, net

29,03628,265Land

11,288

11,230

Other, net

1,495

2,119

Total property, plant and equipment

58,88858,293

1,129

1,057

Total current assets
Non-current assets
Property, plant and equipment

Intangible assets
Goodwill
Other359

324

Total intangible assets

1,488

1,382

Investments and other assets
Investment securities
Deferred tax assets
Other

13,939593
1,138

10,2581,265
1,216

Allowance for doubtful accounts

(41)

(41)

Total investments and other assets

15,63012,69976,006

72,375

125,430

119,745

Total non-current assets
Total assets―3―

(Millions of Yen)
As of March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Current portion of bonds payable
Income taxes payable
Provision for bonuses

As of September 30, 2022

11,02010,76010,615
4,808
70

9,695
3,831
70

939
437

923
438

Other

7,038

5,536

Total current liabilities

34,93031,255

350
8,949
516
79
50
1,270
648

315
7,443
464
65
50
1,261
648

Non-current liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Provision for directorsʼ retirement benefits
Provision for environmental measures
Net defined benefit liability
Asset retirement obligations
Other73271

11,937

10,519Total liabilities

46,867

41,775

Net assetsShareholdersʼ equity
Capital stock
Capital surplus
Retained earnings

11,485
10,922
56,056

11,485
10,91558,349Treasury shares(8,961)(10,166)

Total shareholdersʼ equity

69,50270,583

2,636－

1,020
0

Remeasurements of defined benefit plans

(10)

3

Total accumulated other comprehensive income

2,626

1,023

164

129

Total non-current liabilities

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

Share acquisition rights
Non-controlling interests

6,268

6,233

Total net assets78,562

77,970125,430

119,745

Total liabilities and net assets―4―(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated
Statements of Comprehensive Income
Quarterly Consolidated Statements of Income(Millions of Yen)

Net sales
Cost of sales

Six Months ended
September 30, 2021
38,83932,882Six Months ended
September 30, 2022
42,071
37,173Gross profit

5,957

4,897

Selling, general and administrative expenses

3,720

3,559

Operating income

2,236

1,337

0138

0146

63
35667

62
19955

Non-operating income
Interest income
Dividend incomeRent income
Insurance income
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses

130

136

1,035

1,3207067

Other

60

41

Total non-operating expenses

130

109

Ordinary income

3,140

2,549

Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities

1,490

3－
8457
4

1,758

1,636

1,762－
84－804857－National subsidies
Gain on extinguishment of tie-in shares
Other
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Other－－－93106

Profit before income taxes

4,683

4,205

Income taxes - current
Income taxes - deferred

1,198

1,055

(6)

(39)

Total income taxes

1,192

1,015

Profit

3,491

3,189

Total extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent―5―3539

3,455

3,150

Quarterly Consolidated Statements of Comprehensive Income(Millions of Yen)
Six Months ended
September 30, 2021
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans
Share of other comprehensive income of entities
accounted for using equity method

Six Months ended
September 30, 2022

3,491

3,189

189
015(1,615)
013

8(2)

214(1,604)

Comprehensive income

3,705

1,585

Comprehensive income attributable toOwners of parent
Non-controlling interests

3,670
35

1,548
37

Total other comprehensive income―6―

(3) Quarterly Consolidated Statement of Cash Flows(Millions of Yen)
Six Months ended
September 30, 2021

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability

Six Months ended
September 30, 2022

4,683
3,023
－71(0)
230

4,205
2,982
5771(0)010

Increase (decrease) in provision for retirement benefits for directors(and other officers)

7(13)Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity method
Loss on retirement of property, plant and equipment
Loss (gain) on sales of property, plant and equipment
Loss (gain) on sales of investment securities(138)
70(667)84(1,490)(146)
67(955)48(3)(1,758)

Subsidy income
Decrease (increase) in trade receivables

－(84)
(183)

Decrease (increase) in inventories
Increase (decrease) in trade payables

(370)
(91)

－(453)(652)(259)

Other, net

146(835)

Subtotal

5,094

2,364

Interest and dividends income
Interest expenses
Income taxes paid

1,674
(71)
(1,429)933(69)(1,094)

92
35

0
19

5,396

2,153(243)252(4,486)(277)
292(2,844)

(82)
1,642
84

(26)
3

Income taxes refund
Proceeds from insurance income
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Payments for retirement of property, plant and equipment
Proceeds from sales of property plant and equipment
Goverment subsidy
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries and associates
Other, net－23(53)(28)

Net cash provided by (used in) investing activities(2,892)―7―－(0)3,311－(168)
290

(Millions of Yen)
Six Months ended
September 30, 2021

Six Months ended
September 30, 2022

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Redemption of bonds
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Other, net(500)(2,106)(35)(0)(1,000)
(60)
(629)

(920)
(2,483)(35)(1,260)
(858)
(72)

00

Net cash provided by (used in) financing activities－(4,332)(5,629)Net increase (decrease) in cash and cash equivalents(1,828)(3,185)

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting frommerger with unconsolidated subsidiaries

13,19769

11,722

Cash and cash equivalents at end of period

11,4388,537―8―－Segment Information
Information on Net Sales, Profit/Loss of Each Reportable Segment
Six Months ended September 30, 2021
(Millions of yen)
Industrial
Material
Net sales
Sales to outside
Intersegment sales andtransfers
Total
Segment profit or loss

HouseholdProductsSpecial
Material

Environment
Related

Total

Adjustment Consolidated(Note 1)
(Note 2)

18,252

10,099

8,151

2,336

38,839－38,839

946

307

95

1,088

2,437

(2,437)－

19,19910,406

8,246

3,424

41,277(2,437)

38,839605

1,391

349(180)

2,165

71

2,236

Six Months ended September 30, 2022(Millions of yen)
Industrial
Material

HouseholdProducts

SpecialMaterial

Environment
Related

Total

Adjustment Consolidated(Note 1)
(Note 2)

Net sales
Sales to outside

20,815

9,931

8,474

2,849

42,071－42,071

Intersegment sales andtransfers

1,030

612

101

1,145

2,890

(2,890)－Total

21,846

10,543

8,576

3,995

44,962(2,890)42,071520

718

61(34)

1,264

73

1,337

Segment profit or loss
Notes:

1. “Adjustment” is due to intersegment elimination, etc.
2. Segment profit total was adjusted to be consistent with the operating income recorded on the Consolidated

Statements of Income.

―9―