Summary of Consolidated Financial Results
for the Fiscal Year Ended March 31, 2021
(unaudited) (Based on Japanese GAAP)May 14, 2021
Company name:

Tokushu Tokai Paper Co., Ltd.

Stock exchange listing: Tokyo
Code number:

3708

URL

Representative:

President and Chief Executive Officer

Yuji Matsuda

For inquiry:

Director Managing Executive Officer, CFO

Tsuneo Sekine

Scheduled date of Ordinary General Meeting of Shareholders:June 24, 2021

Scheduled date of filing financial report:

June 24, 2021

Dividend payment date:June 25, 2021

Availability of support documentation:

Yes

Holding of financial result briefing:Nohttps://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 Fiscal Year Ended March 31, 2021 (April 1, 2020–March 31, 2021)(1) Consolidated Operating Results(The percentages indicate the percentage increase or decrease compared to the same period of the previous fiscal year.)Net sales

Operating income

Ordinary income

Profit attributable toowners of parent% Millions of yen%

Fiscal Year ended

Millions of yen

March 31, 2021

76,403

(5.2)

3,227

12.4

5,970

10.8

5,594

March 31, 2020

80,603

(1.6)

2,870

(8.7)

5,389

0.7

3,694 (12.3)

5,879 million yen
3,104 million yen

89.4%(14.1)%% Millions of yen% Millions of yen

51.4

Note: Comprehensive income
Fiscal year ended March 31, 2021
Fiscal year ended March 31, 2020

Fiscal Year ended

Basic earnings
per share
Yen

Diluted earnings
per share
Yen

March 31, 2021

416.30414.57

7.8

4.6

4.2

March 31, 2020

266.07265.07

5.3

4.1

3.6

Ordinary income to Operating income tototal assets
net sales%%%

Return on equity(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

As of March 31, 2021

128,091

80,28657.3

5,493.99

As of March 31, 2020

132,655

77,67853.5

5,105.28

Reference: Equity

As of March 31, 2021
As of March 31, 2020

73,428 million yen
70,908 million yen(3) Consolidated Cash Flow
Net cash provided by(used in)operating activities

Net cash provided by(used in)investing activities

Net cash provided by(used in)financing activities

Cash and cash
equivalents at end of
periodFiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2021

11,638893(9,242)

13,197

March 31, 2020

11,014(9,598)

(234)

9,908

―1―

2. Dividends
Annual Dividends per sharestnd

1 quarter 2 quarter 3rd quarter End of
fiscal year
end
end
end

Total

Total dividends

Fiscal year ended

Yen

Yen

Yen

Yen

Yen Millions of yen

March 31, 2020

－

25.00

－

50.00

75.00

March 31, 2021

－

25.00

－

75.00

100.00Fiscal year ending
March 31, 2022
(Forecast)

－

50.00

－

50.00

100.00

Dividend
Dividends topayout ratio
net assets(Consolidated) (Consolidated)
%

%

1,041

28.2

1.5

1,336

24.0

1.9

37.3

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021–March
31, 2022)(The percentages indicate the percentage increase or decrease compared to the same period of the previous fiscal year.)Net sales
Millions of yen

Full fiscal year

81,000Operating income% Millions of yen
6.0

3,600

Profit attributable toowners of parent% Millions of yen%

Ordinary income% Millions of yen
11.5

5,000 (16.3)

3,600 (35.7)

Basic earnings
per share
Yen
267.894. 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:[3] Number of issued shares (common shares)(i) Number of issued shares (including treasury shares) as of:March 31, 2021
14,900,000 shares
March 31, 2020
15,412,000 shares(ii) Number of treasury shares as of:March 31, 2021
1,534,775 shares
March 31, 2020
1,522,662 shares(iii) Average number of shares during the period:
13,438,563 sharesFiscal year ended March 31, 2021
13,886,942 sharesFiscal year ended March 31, 2020

―2―

No
No
No
No

(Reference)
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020–March 31,
2021)(1) Non-consolidated Operating Results(The percentages indicate the percentage increase or decrease compared to the same period of the previous fiscal year.)Net sales

Operating income

Ordinary income

Net income

Fiscal year ended

Millions of yen

March 31, 2021

19,920(14.1)

963

8.3

3,560

17.8

4,699

111.4

March 31, 2020

23,190(3.2)

889(30.1)

3,022

34.8

2,223

14.6

% Millions of yen% Millions of yen% Millions of yen%

Basic earnings per share Diluted earnings per share
Fiscal year ended

Yen

Yen

March 31, 2021

349.72348.26

March 31, 2020

160.09159.48(2) Non-consolidated Financial Position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

As of March 31, 2021

73,23360,92583.0

4,545.29

As of March 31, 2020

77,14359,59077.1

4,279.81

Reference: Equity

60,748 million yen
59,443 million yen

As of March 31, 2021
As of March 31, 2020

*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.

―3―

Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of Yen)
As of March 31, 2020

As of March 31, 2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other

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

13,532
24,428
4,241
728
4,640
921

Allowance for doubtful accounts

(23)

(15)

47,20048,478

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

49,39950,332(32,053)(33,146)

Buildings and structures, net

17,346

17,185

Machinery, equipment and vehicles
Accumulated depreciation

158,863

160,135(128,847)(131,081)

30,01529,05313,06012,134

2,271

1,425

Machinery, equipment and vehicles, net
LandConstruction in progress
Other

6,543

6,597

Accumulated depreciation(5,397)(5,424)

Other, net

1,145

1,172

63,83960,971Intangible assets
Goodwill

1,426

1,271

Other

350

416

Total intangible assets

1,776

1,688

Investments and other assets
Investment securities
Deferred tax assets
Other

18,314565
1,001

15,593553
847

Total property, plant and equipment

Allowance for doubtful accounts

(41)

(41)

Total investments and other assets

19,83916,952

Total non-current assets
Total assets―4―85,45579,612

132,655

128,091(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 March 31, 2021

10,913
11,405
7,267
70
474
425
0

10,075
6,445
4,156
70
1,160
422
35

Other

8,166

8,492

Total current liabilities

38,72330,858508
11,506
1,253
55
53
557
1,636
621

420
13,728
725
64
52

60

67

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
Other

－
1,230
658

16,254

16,946

Total liabilities

54,97747,804

Net assets
Shareholdersʼ equity
Capital stock
Capital surplus
Retained earnings

11,485
12,69847,910

11,485
11,03052,476

Treasury shares(4,494)(5,000)Total shareholdersʼ equity

67,59969,991

3,657
0

3,474

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

(348)

－
(37)

Total accumulated other comprehensive income

3,309

3,436

Share acquisition rights

146

176

Non-controlling interests

6,622

6,681

Total net assets
Total liabilities and net assets―5―77,67880,286132,655

128,091

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
IncomeConsolidated Statements of Income(Millions of Yen)
Year ended March 31, 2020

Year ended March 31, 2021

Net sales
Cost of sales

80,60369,80076,40365,315Gross profit

10,803

11,087

Selling, general and administrative expenses

7,933

7,860

Operating income

2,870

3,227

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

0
388
109
125
2,005

0
336
127
76
2,210

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

340

312

2,971

3,064

187

197

170

68

Other

94

54

Total non-operating expenses

452

321

5,389

5,970

Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Insurance income
Compensation for expropriation
Other
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Loss on valuation of investment securities
Provision for environmental measures
Business restructuring expenses
Extra retirement payments
Other

13

27

－
126
147

5,898

－

－
－
37

287

5,963

3
465

109
302
3,785

－
3
36
575
55
－

－
37
－
－
10

1,140

4,246

Profit before income taxes

4,536

7,688

Income taxes - current
Income taxes - deferred

684

2,484

(64)

(546)

Total extraordinary losses

Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

―6―

619

1,937

3,916

5,750

221

156

3,694

5,594

Consolidated Statements of Comprehensive Income(Millions of Yen)
Year ended March 31, 2020

Year ended March 31, 2021

3,916

5,750

(732)
0
(81)

(184)
(0)
310

1

3

(812)

128

Comprehensive income

3,104

5,879

Comprehensive income attributable to
Owners of parent
Non-controlling interests

2,885
219

5,721
158

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
Total other comprehensive income―7―(3) Consolidated Statement of Changes in Equity
Previous consolidated fiscal year (from April 1, 2019 to March 31, 2020)(Millions of yen)
Shareholdersʼ equity
Capital stock
Balance at beginning of current period

Capital surplus

11,485Retainedearnings

12,706

Treasury shares

45,256

Total
shareholdersʼ
equity(4,525)64,922

Changes of items during period
Dividends of surplus(1,041)(1,041)

Profit attributable to owners of parent

3,694

3,694

Purchase of treasury shares

(1)
32

(8)

Disposal of treasury shares(1)
24

Cancellation of treasury shares－

Net changes of items otherthan shareholdersʼ equity
Total changes of items during period
Balance at end of current period

－

(8)

2,653

31

2,676

11,485

12,69847,910(4,494)

67,599

Accumulated other comprehensive income
Total
Valuation
Remeasurement accumulated
Deferredgains
difference ons of defined
otheravailable-for- or losses on
benefit plans comprehensive
hedgessale securities
incomeBalance at beginning of current
periodChanges of items during period

4,386

(266)

－

4,119

Share
acquisitionrights148

Noncontrollinginterests

6,522

Total net
assets75,713

Dividends of surplus
Profit attributable to ownersof parent
Purchase of treasury shares(1,041)

Disposal of treasury shares

24

Cancellation of treasury
shares－Net changes of items otherthan shareholdersʼ equity
Total changes of items during
periodBalance at end of current period

3,694
(1)

(728)

0

(81)

(809)

(2)

100

(711)

(728)

0

(81)

(809)

(2)

100

1,964

3,657

0

(348)

3,309

146

6,622

77,678―8―

Consolidated fiscal year (from April 1, 2020 to March 31, 2021)(Millions of yen)
Shareholdersʼ equity
Capital stock
Balance at beginning of current period

Capital surplus

11,485Retainedearnings

12,698Treasury shares

47,910Total
shareholdersʼ
equity(4,494)

67,599Changes of items during period
Dividends of surplus(1,028)

Profit attributable to owners of parent

5,594(1,028)
5,594

Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares

0(2,176)
3(1,667)

1,667(2,176)3－

Net changes of items otherthan shareholdersʼ equity
Total changes of items during period
Balance at end of current period－(1,667)

4,565

(505)

2,392

11,485

11,03052,476(5,000)69,991

Accumulated other comprehensive income
Total
Valuation
Remeasurement accumulated
Deferredgains
difference ons of defined
otheravailable-for- or losses on
benefit plans comprehensive
hedgessale securities
incomeBalance at beginning of current
periodChanges of items during period

3,657

(348)

0

3,309

Share
acquisitionrights146

Noncontrollinginterests

6,622

Total net
assets77,678Dividends of surplus
Profit attributable to ownersof parent
Purchase of treasury shares(1,028)

Disposal of treasury shares

3－

Cancellation of treasury
sharesNet changes of items otherthan shareholdersʼ equity
Total changes of items during
periodBalance at end of current period

5,594(2,176)

(183)

(0)

310

126

29

58

215

(183)

(0)

310

126

29

58

2,607

3,474

－

(37)

3,436

176

6,681

80,286―9―

(4) Consolidated Statement of Cash Flows(Millions of Yen)
Year ended March 31, 2020
Cash flows from operating activities
Profit before income taxes
Depreciation

Year ended March 31, 2021

4,536
6,628

7,688
6,543
3,785

Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability

－
11
0
31

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

08Increase (decrease) in provision for environmental measures
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
Loss (gain) on valuation of investment securities

(28)
(389)
187
(2,005)
465
(10)

34
(337)
197
(2,210)302
81(5,898)Insurance income
Business structure improvement expenses
Decrease (increase) in notes and accounts receivable - trade

(252)
575
1,896

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accrued consumption taxes(66)(1,692)
386

1,071
(837)
17

Other, net

269

414

－
3

142
(8)
36

－
(76)
－
680

Subtotal

10,548

11,636

Interest and dividends income
Interest expenses

1,208
(191)

1,732
(196)

Proceeds from insurance income
Income taxes paid

336
(986)

76
(1,895)

Income taxes refund

99

284

11,014

11,638(191)
156(6,166)(324)
256(7,842)

Payments for retirement of property, plant and equipment
Proceeds from sales of property plant and equipment
Purchase of intangible assets
Goverment subsidy
Purchase of investment securities(1,499)
20
(108)
389
(1)

(468)
351
(158)

Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change in scope of
consolidation－(2,160)

9,127

(36)

(45)

(9,598)893

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

Other, net
Net cash provided by (used in) investing activities

―10―

－
(1)
－

(Millions of Yen)
Year ended March 31, 2020
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Redemption of bonds
Proceeds from sales of treasury shares
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing activities

Year ended March 31, 2021

3,080
4,620

(4,960)7,349(6,702)(70)
0(8,239)(88)(1)(1,040)(119)(2,177)(1,028)
(99)

－

0

0

(234)

(9,242)(0)0

Net increase (decrease) in cash and cash equivalents

1,181

3,289

Cash and cash equivalents at beginning of period

8,726

9,908

Cash and cash equivalents at end of period

9,908

13,197

Effect of exchange rate change on cash and cash equivalents―11―Segment Information, etc.
Segment Information
1. Summary of Reportable Segments
Tokushu Tokai’s reportable segments refer to the business components of Tokushu Tokai that provide separate financial
data to the board of directors for decisions on allocation of management resources and evaluation of business results on aregular basis.
Tokushu Tokai mainly engages in production, processing and sales of paper, adopts the independent business unit system
so that a comprehensive business strategy can be planned for each type of paper product handled and is developing
business activities under the endowed decision-making authority. Therefore, Tokushu Tokai consists of segments basedon unit organization classified by the type of products produced by each unit, and discloses financial information about
three reportable segments, namely Industrial Material, Special Material and Household Products.
“Industrial Material” mainly produces, processes and sells paper for containerboard and packaging paper, and also
engages in power sales business.
“Special Material” produces, processes, and sells high value added special printing paper and functional paper.
“Household Products” produces, processes, and sells mainly paper towels and toilet paper.
(Information on changes for reportable segment)
From the current consolidated fiscal year, to reflect the performance of each reportable segment better, we havereviewed corporate expenses allocation standards and changed the method of calculating profit or loss in thebusiness segment.
In addition, as the quantitative importance of “Environment Related Business”, which was previously referred to as“Others”, has increased, we have changed the method to be described as a reportable segment.
The segment information for the previous consolidated fiscal year has been prepared by the method of calculating
profit or loss after the change, and has been prepared based on the classification of the reportable segment after thechange.

2. Net Sales, Profit/Loss, Asset/Liabilities and Others of Each Reportable Segment and Calculation Method
Accounting treatment for business segment reporting is the same as the accounting policies used in the preparation of
consolidated financial statements.
3. Information on Net Sales, Profit/Loss, Assets/Liabilities and Others of Each Reportable Segment
FY2019 (April 1, 2019 to March 31, 2020)(Millions of yen)

Industrial
Material

HouseholdProducts

SpecialMaterial

Environment
RelatedAdjustment Consolidated(Note 1) (Note 2,3)

Total

Net sales
Sales to outside

37,22621,16817,575

4,633

80,603－80,603

Intersegment sales andtransfers

1,933

742

285

2,126

5,087

(5,087)－

Total

39,15921,911

17,8606,759

85,691(5,087)80,603

Segment profit
Segment assets
Other items

1,209

1,118

528

120

2,976

(106)

2,870

53,59048,875

18,4959,046

130,007

2,647

132,655

3,412

1,891

1,018

212

6,535

93

6,628

－

－

－

11

11

－

11

－

－

－

－

－

－

－

Investments in entities
accounted for using
equity method

3,535

－

－

－

3,535

－

3,535

Increase in tangible
and intangible fixed
assets

2,632

1,627

1,358

1,559

7,178

24

7,203

Depreciation
Amortization of goodwill
Impairment loss

―12―

FY2020 (April 1, 2020 to March 31, 2021)(Millions of yen)

Industrial
Material

HouseholdProducts

SpecialMaterial

Environment
RelatedAdjustment Consolidated(Note 1) (Note 2,3)

Total

Net sales
Sales to outside

35,19618,151

16,3796,676

76,403－76,403

Intersegment sales andtransfers

1,934

595

205

2,097

4,831

(4,831)－

Total

37,13018,746

16,584

8,773

81,234(4,831)

76,403

Segment profit
Segment assets

1,177

1,302

833

70

3,384

(156)

3,227

55,23545,43018,135

9,756

128,558(204)

128,354

3,110

1,827

1,051

460

6,448

94

6,543

－

－

－

142

142

－

142

577

Other items
Depreciation
Amortization of goodwill
Impairment loss

－

3,208

－

3,785

－

3,785

Investments in entities
accounted for using
equity method

4,353

－

－

－

4,353

－

4,353

Increase in tangible
and intangible fixed
assets

4,286

1,443

1,370

1,185

8,285

60

8,346

Notes:
1. “Adjustment” comprises the following:(1) Segment profit

Depreciation
Corporate expenses
Elimination, etc.
Total

(Millions of yen)
FY2019
(93)
(185)
172
(106)

(2) Segment assets

Corporate assets
Elimination, etc.
Total

FY2020
(94)
(189)
127
(156)
(Millions of yen)

FY201984,456(81,808)

FY202086,068(86,272)

2,647

(204)

(3) Increase in tangible and intangible fixed (Millions of yen)

FY2019Corporate assets
Total

FY2020
24
24

60
60

2. Segment profit total was adjusted to be consistent with the operating income recorded on the Consolidated Statements ofIncome.
3. Of general administrative expenses, expenses that are common to each business segment are allocated to each businesssegment according to the internal distribution standard.

―13―

Related Information
FY2019 (April 1, 2019 to March 31, 2020)
1. Information by Product/Service
This information is not presented because similar information is available in “Segment Information.”
2. Geographic Information(1) Net sales
This information is not presented because sales to outside customers in Japan exceed 90% of net sales on the
consolidated statements of income.
(2) Property, plants and equipment
This information is not presented because the amount of property, equipment and plant in Japan exceeds 90% of theamount on the consolidated balance sheet.
3. Major Customer Information(Millions of yen)Company
Nippon Tokai Industrial
Paper Supply Co., Ltd.

Net sales

segment

31,301

Industrial Material

FY2020 (April 1, 2020 to March 31, 2021)
1. Information by Product/Service
This information is not presented because similar information is available in “Segment Information.”
2. Geographic Information(1) Net sales
This information is not presented because sales to outside customers in Japan exceed 90% of net sales on the
consolidated statements of income.
(2) Property, plants and equipment
This information is not presented because the amount of property, equipment and plant in Japan exceeds 90% of theamount on the consolidated balance sheet.
3. Major Customer Information(Millions of yen)Company
Nippon Tokai Industrial
Paper Supply Co., Ltd.

Net sales

segment

29,705

Industrial Material

Information on Impairment Loss of Fixed Assets of Each Reportable Segment
FY2019 (April 1, 2019 to March 31, 2020)
This information is not presented because similar information is available in “Segment Information.”
FY2019 (April 1, 2020 to March 31, 2021)
This information is not presented because similar information is available in “Segment Information.”―14―

Information on Goodwill Amortization and Unamortized Balance of Each Reportable Segment
FY2019 (April 1, 2019 to March 31, 2020)(Millions of yen)
SpecialMaterial

Industrial
Material

Amortization
during the period
Balance at the endof the periodHouseholdProducts

Environment
RelatedCorporate/
Elimination

Total

—

—

—

11

—

11

—

—

—

1,426

—

1,426

FY2020 (April 1, 2020 to March 31, 2021)(Millions of yen)
SpecialMaterial

Industrial
Material

Amortization
during the period
Balance at the endof the periodHouseholdProducts

Environment
RelatedCorporate/
Elimination

Total

—

—

—

142

—

142

—

—

—

1,271

—

1,271

Information on Gain on Negative Goodwill of Each Reportable Segment
FY2019 (April 1, 2019 to March 31, 2020)
Not applicable.
FY2020 (April 1, 2020 to March 31, 2021)
Not applicable.

―15―