Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2020
(unaudited) (Based on Japanese GAAP)
November 12, 2020
Company name:

Tokushu Tokai Paper Co., Ltd.

Stock exchange listings: Tokyo
Code number:

3708

URL

Representative:

President and Chief Executive Officer

Yuji Matsuda

For inquiry:

Director, Managing Executive Officer, CFO

Tsuneo Sekine

Quarterly securities report issuing date:November 12, 2020

Dividend payment date:

December 7, 2020

Availability of support documentation:

YesNo

Holding of financial result briefing:https://www.tt-paper.co.jp
TEL +81-3-3281-8581(All yen figures are rounded down to the nearest one million yen)
1. Consolidated Financial Results for the Six Months Ended September 30, 2020 (April 1, 2020 – September 30,2020)(1) Consolidated Operating Results(% represents the change from the same period in the previous fiscal year)
Net sales
Six Months ended

Millions of yen% Millions of yen

Profit attributable toowners of parent% Millions of yen%

5.2

4.9

Operating income% Millions of yen

Ordinary income

September 30, 2020

36,663(8.0)

864

September 30, 201939,8701.4821 (53.5)

2,177

2,075 (23.7)

Note: Comprehensive income
Six Months ended September 30, 2020
Six Months ended September 30, 20191,802 million yen
771 million yen

Basic earnings
per share
Yen

Diluted earnings
per share
Yen

September 30, 2020

226.28225.39September 30, 2019

92.97

92.62

Six Months ended

133.6%(72.1)%(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

Millions of yen%

As of September 30, 2020

132,481

76,54452.7

As of March 31, 2020

132,655

77,67853.5

Reference: Equity

As of September 30, 2020As of March 31, 2020

―1―Equity ratio

69,842 million yen
70,908 million yen

3,057

136.9

1,290 (35.2)

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, 2020

－

25.00

－

50.00

75.00

March 31, 2021

－

25.00
－

25.00

50.00

Fiscal year ending
March 31, 2021
(Forecast)

Note: Revision to dividend forecasts published most recently: No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2021 (April 1, 2020 –March 31, 2021)(% represents the change from the same period in the previous fiscal year)
Net sales
Millions of yen

Full fiscal year

76,000Operating income% Millions of yen(5.7)

Profit attributable toowners of parent% Millions of yen%

Ordinary income% Millions of yen

1,800 (37.3)

3,600 (33.2)

6,800

Basic earnings
per share
Yen

84.0

504.32

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): 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:
2) Changes in accounting policies other than 1) above:3) Changes in accounting estimates:
4) Retrospective restatements:

NoNo
No
No

[3] Number of issued shares (common shares)(i) Number of issued shares (including treasury shares) as of:
September 30, 2020
14,900,000 shares
March 31, 2020
15,412,000 shares(ii) Number of treasury shares as of:
September 30, 2020
1,534,499 shares
March 31, 2020
1,522,662 shares(iii) Average number of shares during the period:
Six months ended September 30, 2020
13,511,330shares
Six months ended September 30, 201913,884,423 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
Merchandise and finished goods
Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts

As of March 31, 2020

As of September 30, 2020

10,175
25,109
4,369
793
5,519
1,256

15,91422,878
4,628
759
5,363
688

(23)

(14)

47,20050,219Buildings and structures, net

17,346

17,609Machinery, equipment and vehicles, net

30,01529,942Land

13,06013,011Other, net

3,416

4,297

Total property, plant and equipment

63,83964,859

1,426

1,343

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

Intangible assets
Goodwill
Other

350

338

Total intangible assets

1,776

1,681

Investments and other assets
Investment securities
Deferred tax assets
Other

18,3145651,001

14,297568
896

Allowance for doubtful accounts

(41)

(41)

Total investments and other assets

19,83915,72085,45582,261

132,655

132,481

Total non-current assets
Total assets―3―(Millions of Yen)
As of March 31, 2020
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Current portion of bonds
Income taxes payable
Provision for bonuses
Provision for environmental measures

As of September 30, 2020

10,913

9,393

11,405
7,267
70

18,135
3,97270474
425

586
448

0

20

Other

8,166

7,842

Total current liabilities

38,72340,468508
11,506
1,253
55
53
557
1,636
621

455
11,939
695
53
54
26
1,572
604

Non-current liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Provision for directorsʼ retirement benefits
Provision for environmental measures
Provision for business structure improvement
Net defined benefit liability
Asset retirement obligations
Other60

65

16,254

15,467

Total liabilities

54,97755,936

Net assets
Shareholdersʼ equity
Capital stock
Capital surplusRetained earnings

11,485
12,69847,910

11,485
11,03050,273

Treasury shares(4,494)(4,998)

Total shareholdersʼ equity

67,59967,790

3,657
0

2,369

Remeasurements of defined benefit plans

(348)

(316)

Total accumulated other comprehensive income

3,309

2,052

146

176

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

6,622

6,525

Total net assets

77,67876,544

132,655

132,481Total 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, 201939,87035,103Six Months ended
September 30, 2020
36,66331,866Gross profit

4,766

4,797

Selling, general and administrative expenses

3,944

3,933

Operating income

821

864

Non-operating income
Interest income
Dividend income
Rent income
Insurance income
Share of profit of entities accounted for using equity method0261
5155866

0207
6468
1,000

Other
Total non-operating income
Non-operating expenses
Interest expenses

156108

1,392

1,450

93108

Other

4427

Total non-operating expenses

138

136

2,075

2,177

107－
109

1,936

Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Insurance income
Other
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Provision for environmental measures
Business restructuring expenses－－111191,955

236

246
34
334

211
23－617

270

Profit before income taxes

1,577

3,862

Income taxes - current
Income taxes - deferred

237

831

(33)

(23)

Total income taxes

204

808

1,373

3,053

82

(3)

1,290

3,057

Total extraordinary losses

ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent―5―

Quarterly Consolidated Statements of Comprehensive Income(Millions of Yen)
Six Months ended
September 30, 2019
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, 2020

1,373

3,053(618)－17(1,281)
(0)
31(0)

(0)

(601)

(1,251)

Comprehensive income

771

1,802

Comprehensive income attributable toOwners of parent
Non-controlling interests

690
81

1,800
2

Total other comprehensive income―6―(3) Quarterly Consolidated Statement of Cash Flows(Millions of Yen)
Six Months ended
September 30, 2019

Cash flows from operating activities
Profit before income taxes
Depreciation
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, 2020

1,577
3,268
－(1)
(8)
40

3,862
3,236
71
(9)
22(19)

Increase (decrease) in provision for retirement benefits for directors(and other officers)0(2)Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity method
Loss on retirement of property, plant and equipmentLoss (gain) on sales of property, plant and equipment
Loss (gain) on sales of investment securities
Insurance claim income
Business restructuring expenses
Decrease (increase) in notes and accounts receivable - trade(261)
93(866)246(7)－(109)
334
2,888(207)
108(1,000)
211
28(1,936)

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade(430)(2,659)－－2,231(69)(1,519)Other, net

265(309)

Subtotal

4,370

4,697

Interest and dividends income
Interest expenses
Income taxes paid1,080(94)(656)

1,602(102)(719)

Income taxes refund
Proceeds from insurance income

99
243

282
67

5,042

5,827(152)
146(3,301)

(219)
196
(4,237)(1,040)10275(0)

(427)
30－
(130)

3,708
(6)

(4,193)(956)

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
Other, net
Net cash provided by (used in) investing activities―7―－(0)(Millions of Yen)
Six Months ended
September 30, 2019
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable

1,610

Six Months ended
September 30, 2020
6,730
3,049

Other, net－(2,103)
(35)
(0)
(693)
(119)
0(5,912)(53)(2,175)(694)(99)
0Net cash provided by (used in) financing activities(1,341)845

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents－(492)

5,716

Cash and cash equivalents at beginning of period

8,726

9,908

Cash and cash equivalents at end of period

8,233

15,624

Repayments of long-term loans payable
Redemption of bonds
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests―8―0Segment Information
Information on Net Sales, Profit/Loss of Each Reportable Segment
Six Months ended September 30, 2019
(Millions of yen)
Industrial
Material
Net sales
Sales to outside
Intersegment sales andtransfers
Total
Segment profit or loss

HouseholdProductsSpecial
Material

Environment
RelatedAdjustment Consolidated(Note 1)
(Note 2)

Total

18,735

10,579

8,835

1,720

39,870－39,870

976

397

148

1,025

2,548

(2,548)－19,711

10,976

8,984

2,745

42,418(2,548)39,870

370

338

200

(53)

856

(34)

821

Six Months ended September 30, 2020
(Millions of yen)
Industrial
Material
Net sales
Sales to outside
Intersegment sales andtransfers
Total
Segment profit or loss

HouseholdProductsSpecialMaterial

Environment
RelatedAdjustment Consolidated(Note 1)
(Note 2)

Total

17,425

8,116

8,140

2,981

36,663－36,663

922

297

103

1,043

2,366

(2,366)－

18,348

8,414

8,243

4,024

39,030(2,366)

36,663

516

175

318

(81)

928

(63)

864

Notes:
1. “Adjustment” comprises the following:

Segment profit

Corporate expenses
Elimination, etc.
Total

Six Months ended
September 30, 2019
(143)
109
(34)

Six Months ended
September 30, 2020
(135)
72(63)

2. Segment profit total was adjusted to be consistent with the operating income recorded on the Consolidated

Statements of Income.

―9―