Summary of Consolidated Financial Results
for the Nine Months Ended December 31, 2023
(unaudited) (Based on Japanese GAAP)
February 14, 2024
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:

Senior General Manager

Hiro Mochizuki

Quarterly securities report issuing date:February 14, 2024

Dividend payment date:－Availability of support documentation:

NoNo

Holding of financial result briefing:https://www.tt-paper.co.jp
TEL +81-3-5219-1816(All yen figures are rounded down to the nearest one million yen)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2023 (April 1, 2023 – December 31,2023)(1) Consolidated Operating Results(% represents the change from the same period in the previous fiscal year)
Net sales

Operating income

Ordinary income

Nine Months ended

Millions of yen

December 31, 2023

64,9082.9

1,612

December 31, 2022

63,104

5.5

1,397 (58.5)% Millions of yen% Millions of yen
15.4

4,713

Profit attributable toowners of parent% Millions of yen%48.63,171 (32.9)

Note: Comprehensive income
Nine Months ended December 31, 2023
Nine Months ended December 31, 2022

4,473 million yen
2,366 million yen

Nine Months ended

Basic earnings
per share
Yen

Diluted earnings
per share
Yen

December 31, 2023

308.10306.99December 31, 2022

307.37306.2789.0%(47.1)%(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

Millions of yen%

As of December 31, 2023

131,723

81,89056.9

As of March 31, 2023

123,347

78,576

58.5

Reference: Equity

As of December 31, 2023
As of March 31, 2023

―1―Equity ratio

74,982 million yen
72,102 million yen

3,649

(0.9)

3,680 (20.2)

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, 2023

－

50.00

－

50.00

100.00March 31, 2024

－

50.00

－
50.00

100.00Fiscal year ending
March 31, 2024
(Forecast)

Note: Revision to dividend forecasts published most recently: No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 –March 31, 2024)(% represents the change from the same period in the previous fiscal year)
Net sales
Millions of yen

Full fiscal year

90,000Operating income% Millions of yen
7.0

3,000

% Millions of yen
82.8

Profit attributable toowners of parent% Millions of yen%

Ordinary income

6,000

47.8

4,000

Basic earnings
per share
Yen

(3.2)

334.57

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): 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:

NoNo
No
No

[3] Number of issued shares (common shares)(i) Number of issued shares (including treasury shares) as of:December 31, 2023
13,300,000 shares
March 31, 2023
13,300,000 shares(ii) Number of treasury shares as of:December 31, 2023
1,504,687 shares
March 31, 2023
1,405,700 shares(iii) Average number of shares during the period:
Nine months ended December 31, 2023
11,844,245 shares
Nine months ended December 31, 2022
11,975,423 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, and contract assets
Merchandise and finished goods
Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts

As of March 31, 2023

As of December 31, 2023

10,29826,698
5,057
955
7,234
1,253

10,982
28,596
5,226
1,538
6,764
1,666

(17)

(28)

51,47954,746

Buildings and structures, net

16,422

16,300Machinery, equipment and vehicles, net

27,59327,444Land

11,066

12,640

Other, net

2,026

2,708

Total property, plant and equipment

57,10859,093986

2,673

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

Intangible assets
Goodwill
Other285

257

Total intangible assets

1,272

2,930

Investments and other assets
Investment securities
Deferred tax assets
Other

11,029
1,313
1,184

13,126906
960

Allowance for doubtful accounts

(41)

(41)

Total investments and other assets

13,486

14,952

71,86776,977

123,347

131,723

Total non-current assets
Total assets―3―

(Millions of Yen)
As of March 31, 2023
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 business restructuring

As of December 31, 202310,068

9,989

10,065
3,904
70

10,212
4,845
80

447
436

342
302
145

Other－
6,602

7,409

Total current liabilities

31,59433,328280
10,088
446
72
52
1,349
596

252
13,164
490
96
47
1,402
647

289

403

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

13,176

16,505

Total liabilities

44,771

49,833

Net assets
Shareholdersʼ equity
Capital stock
Capital surplusRetained earnings

11,485
5,502
58,734

11,485
5,503
61,199Treasury shares(4,755)(5,088)

Total shareholdersʼ equity

70,96773,098

1,158
(0)

1,893
0

Total non-current liabilities

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans

(23)

(10)

Total accumulated other comprehensive income

1,135

1,883

Share acquisition rights

129

144

Non-controlling interests

6,344

6,763

Total net assets
Total liabilities and net assets―4―78,57681,890123,347

131,723

(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

Nine Months ended
December 31, 2022
63,10456,446Nine Months ended
December 31, 2023
64,90857,381Gross profit

6,657

7,527

Selling, general and administrative expenses

5,260

5,915

Operating income

1,397

1,612

0235

4210

92
24
1,415

91
116
2,618

Non-operating income
Interest income
Dividend income
Rent income
Insurance income
Share of profit of entities accounted for using equity method
Other210

232

1,977

3,274

100

114

Commission expenses

45

Other57－58

Total non-operating income
Non-operating expenses
Interest expenses

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Compensation for forced relocation
National subsidies
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment losses
Loss on disaster
Restoration expenses on facilities
Loss on valuation of shares of subsidiaries and associates
Business restructuring expenses

203

173

3,171

4,713

4
1,835
－
－

2357
255
129

1,840

464

090
57
44－
105
105

－
－
－－
281
45
181

192

719

Profit before income taxes

4,819

4,458

Income taxes - current
Income taxes - deferred

960
123

696
37

Total extraordinary losses

Total income taxes

1,084

733

Profit

3,735

3,725

Profit attributable to non-controlling interests
Profit attributable to owners of parent

―5―

5476

3,680

3,649

Quarterly Consolidated Statements of Comprehensive Income(Millions of Yen)
Nine Months ended
December 31, 2022
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

Nine Months ended
December 31, 2023

3,735

3,725

(1,385)(0)20728013(2)

5(1,368)

747

Comprehensive income

2,366

4,473

Comprehensive income attributable toOwners of parent
Non-controlling interests

2,314
52

4,397
75

Total other comprehensive income―6―Segment Information
Information on Net Sales, Profit/Loss of Each Reportable Segment
Nine Months ended December 31, 2022
(Millions of yen)
Industrial
Material

HouseholdProductsSpecial
Material

Environment
Related

Total

Adjustment Consolidated(Note 1)
(Note 2)

Net sales
Sales to outside

30,928

14,596

13,045

4,534

63,104－

63,104

Intersegment sales andtransfers

1,650

819

148

1,677

4,296

(4,296)－Total

32,57815,416

13,194

6,211

67,400(4,296)

63,104

509

701

1371

1,296

101

1,397

Segment profit

Nine Months ended December 31, 2023
(Millions of yen)
Industrial
Material

HouseholdProducts

SpecialMaterial

Environment
Related

Total

Adjustment Consolidated(Note 1)
(Note 2)

Net sales
Sales to outside

30,11014,634

13,754

6,409

64,908－64,908Intersegment sales andtransfers

1,985

644

155

2,228

5,013

(5,013)－

Total

32,095

15,27913,9098,637

69,922(5,013)64,908

824

139

523

199

1,686

(74)

1,612

Segment profit
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.

―7―