Summary of Consolidated Financial Results
for the Three Months Ended June 30, 2020 (unaudited)(Based on Japanese GAAP)
August 13, 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:August 13, 2020

Dividend payment date:－Availability of support documentation:

NoNo

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 Three Months Ended June 30, 2020 (April 1, 2020 – June 30, 2020)(1) Consolidated Operating Results(% represents the change from the same period in the previous fiscal year)
Net sales
Three Months ended

Millions of yen

Operating income% Millions of yen

Ordinary income% Millions of yen

June 30, 2020

17,854

(9.0)

533

95.0

June 30, 201919,6190.3

273 (73.3)

1,347

Profit attributable toowners of parent% Millions of yen%

2.7

2,434

142.9

1,312 (17.9)

1,001

(8.9)

Note: Comprehensive income
Three Months ended June 30, 2020Three Months ended June 30, 2019

1,185 million yen
322 million yen

Basic earnings
per share
Yen

Diluted earnings
per share
Yen

June 30, 2020

178.20177.53June 30, 2019

72.19

71.90

Three Months ended

268.0%(79.4)%(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

As of June 30, 2020

134,237

75,894

51.6

As of March 31, 2020

132,655

77,67853.5

Reference: Equity

As of June 30, 2020
As of March 31, 2020

69,241 million yen
70,908 million yen―1―2. Dividends
Annual Dividends per sharestnd1 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

81,000Operating income% Millions of yen
0.5% Millions of yen

2,000 (30.3)

Profit attributable toowners of parent% Millions of yen%

Ordinary income－－－Basic earnings
per share
Yen－－

Note: Revision to financial forecasts published most recently: NoTokushu Tokai is not disclosing forecasts of both ordinary income and profit attributable to owners of parent for the fiscal year
ending March 31, 2021, as the effects of the global spread of COVID-19 present challenges in preparing reasonable estimatesfor such figures. Tokushu Tokai will disclose such figures promptly after they can be reasonably estimated.

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:June 30, 2020
15,412,000 shares
March 31, 2020
15,412,000 shares(ii) Number of treasury shares as of:June 30, 2020
2,046,420 shares
March 31, 2020
1,522,662 shares(iii) Average number of shares during the period:
Three months ended June 30, 2020
13,658,699shares
Three months ended June 30, 201913,879,141 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 June 30, 2020

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

16,847
23,166
4,965
974
5,727
1,027

(23)

(15)

47,20052,692

Buildings and structures, net

17,346

17,693

Machinery, equipment and vehicles, net

30,01529,946Land

13,06013,017

Other, net

3,416

3,734

Total property, plant and equipment

63,83964,391

1,4261,390

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

Intangible assets
Goodwill
Other

350

334

Total intangible assets

1,776

1,724

Investments and other assets
Investment securities
Deferred tax assets
Other

18,314565
1,001

13,930597
941

Allowance for doubtful accounts

(41)

(42)

Total investments and other assets

19,83915,42785,45581,544

132,655

134,237

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 June 30, 2020

10,913

9,799

11,405
7,267
70

17,885
7,021
88

474
425

230
297

00

Other

8,166

8,354

Total current liabilities

38,723

43,677508
11,506
1,253
55
53
557
1,636
621

472
10,599
803
55
53
408
1,602
606

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

62

16,254

14,666

Total liabilities

54,97758,343

Net assets
Shareholdersʼ equity
Capital stock
Capital surplus
Retained earnings

11,485
12,69847,910

11,485
12,69849,650Treasury shares(4,494)(6,666)

Total shareholdersʼ equity

67,59967,167

3,657
0

2,406

Remeasurements of defined benefit plans

(348)

(332)

Total accumulated other comprehensive income

3,309

2,074

146

143

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

6,509

Total net assets

77,67875,894

132,655

134,237

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

Three Months ended
June 30, 201919,61917,372Three Months ended
June 30, 2020
17,854
15,339Gross profit

2,247

2,515

Selling, general and administrative expenses

1,973

1,981

Operating income

273

533

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

0258
25
26
707

0204
33
2579

Other

85

55

1,104

875

47

51

Other

18

10

Total non-operating expenses

65

62

1,312

1,347

83－1001,936

Insurance income
Total extraordinary income

108

1,939

046
34
148

32
159

229

192

Profit before income taxes

1,191

3,094

Income taxes - current
Income taxes - deferred

56620

7754

Total income taxes

134675

1,057

2,41855(15)

1,001

2,434

Total non-operating income
Non-operating expenses
Interest expenses

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

Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Provision for environmental measures
Business restructuring expenses
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)
Three Months ended
June 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

Three Months ended
June 30, 2020

1,057

2,418

(745)
－8(1,246)
(0)
15

1(2)

(735)

(1,233)Comprehensive income

322

1,185

Comprehensive income attributable toOwners of parent
Non-controlling interests

268531,198(13)Total other comprehensive income―6―Segment Information
Information on Net Sales, Profit/Loss of Each Reportable Segment
Three Months ended June 30, 2019
(Millions of yen)
Industrial
Material
Net sales
Sales to outside
Intersegment sales andtransfers
Total
Segment profit or loss

Reportable segments
HouseholdSpecial
Material
Products

TotalOthers(Note 1)

Total

Adjustment Consolidate(Note 2) d(Note 3)

9,465

5,274

4,288

19,028591

19,619

209

72

754

498

1,253

－(1,253)

19,619

472
9,937

5,484

4,360

19,782

1,089

20,872(1,253)

19,61913211585333(41)291(17)273－

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

Reportable segments
HouseholdSpecial
Material
Products

Total

Others(Note 1)

Total

8,620

3,921

4,001

16,543

1,310

17,854

471

148

52

671

511

9,091

4,069

4,053

17,214

255

181

182

619

Adjustment Consolidate(Note 2) d(Note 3)

17,8541,183－(1,183)

1,822

19,037(1,183)

17,854

(48)

571

(37)

533

Notes:
1. “Others” consists of operating segments not included in the reportable segments, which is the environment relatedoperations.
2. “Adjustment” comprises the following:

Segment profit

Corporate expenses
Elimination, etc.
Total

Three Months ended
June 30, 2019
(80)
63
(17)

Three Months ended
June 30, 2020
(66)
29
(37)

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

Statements of Income.

―7―－