Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2023
(unaudited) (Based on Japanese GAAP)
November 14, 2023
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 +81-3-5219-1816

Quarterly securities report issuing date:November 14, 2023

Dividend payment date:

December 5, 2023

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, 2023 (April 1, 2023 – September 30,2023)(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

September 30, 2023

42,6151.3783 (41.4)

September 30, 2022

42,071

8.3

1,337 (40.2)

2,949Profit attributable toowners of parent% Millions of yen%

15.7

2,549 (18.8)

Note: Comprehensive income
Six Months ended September 30, 2023
Six Months ended September 30, 2022

3,278 million yen
1,585 million yen

Basic earnings
per share
Yen

Diluted earnings
per share
Yen

September 30, 2023

196.19195.51

September 30, 2022

262.23261.26Six Months ended

106.8%(57.2)%(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

Millions of yen%

As of September 30, 2023

130,531

81,27857.0

As of March 31, 2023

123,347

78,576

58.5

Reference: Equity

As of September 30, 2023
As of March 31, 2023

―1―

Equity ratio

74,448 million yen
72,102 million yen

2,328 (26.1)
3,150(8.8)

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: No3. 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 shareYen(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:
September 30, 2023
13,300,000 shares
March 31, 2023
13,300,000 shares(ii) Number of treasury shares as of:
September 30, 2023
1,504,395 shares
March 31, 2023
1,405,700 shares(iii) Average number of shares during the period:
Six months ended September 30, 2023
11,868,741 shares
Six months ended September 30, 2022
12,016,001 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 suppliesOther
Allowance for doubtful accounts

As of March 31, 2023

As of September 30, 2023

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

9,987
28,468
5,028
1,273
7,371
1,380

(17)

(28)

51,47953,482

Buildings and structures, net

16,422

16,513

Machinery, equipment and vehicles, net

27,59328,247Land

11,066

12,640

Other, net

2,026

2,061

Total property, plant and equipment

57,10859,462986

2,769

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

Intangible assets
Goodwill
Other285

262

Total intangible assets1,272

3,031

Investments and other assets
Investment securities
Deferred tax assets
Other

11,0291,313
1,184

12,642939
1,014

Allowance for doubtful accounts

(41)

(41)

Total investments and other assets

13,486

14,554

71,86777,049123,347

130,531

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

As of September 30, 2023

10,06810,04010,065
3,904
70

12,421
4,325
80

447
436

599
474

Other

6,602

6,907

Total current liabilities

31,594

34,848280
10,088
446
72
52
1,349
596

270
11,142
394
96
52
1,385
648

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

289

414

13,176

14,404

Total liabilities

44,771

49,252

Net assets
Shareholdersʼ equity
Capital stock
Capital surplus
Retained earnings

11,485
5,502
58,734

11,485
5,503
60,468Treasury shares(4,755)(5,087)

Total shareholdersʼ equity

70,96772,368

1,158
(0)

2,094
(0)

Remeasurements of defined benefit plans

(23)

(14)

Total accumulated other comprehensive income

1,135

2,079

129

144

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

6,344

6,685

Total net assets

78,576

81,278123,347

130,531

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, 2022
42,071
37,173Six Months ended
September 30, 2023
42,61537,933Gross profit

4,897

4,682

Selling, general and administrative expenses

3,559

3,898

Operating income

1,337

783

0146

2114

62
19955

61
100
1,840

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

136

157

1,320

2,276

67

75

Other

4136

Total non-operating expenses

109

111

2,549

2,949

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

314

1,758

Compensation for forced relocation

－57
255

1,762

326

048
57

－
100
105
282
45

Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment losses
Restoration expenses on facilities
Loss on valuation of shares of subsidiaries and associates

－－
106

533

Profit before income taxes

4,205

2,742

Income taxes - current
Income taxes - deferred

1,055

571

(39)

(163)

Total income taxes

1,015

408

Profit

3,189

2,334

39

5

3,150

2,328

Total extraordinary losses

Profit (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, 2022Profit
Other 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, 2023

3,189

2,334(1,615)
013929(0)8(2)

5(1,604)

944

Comprehensive income

1,585

3,278

Comprehensive income attributable toOwners of parent
Non-controlling interests

1,548
37

3,272
5

Total other comprehensive income―6―(3) Quarterly Consolidated Statement of Cash Flows(Millions of Yen)
Six Months ended
September 30, 2022

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, 2023

4,205
2,982
57
71(0)
010

2,742
3,023
105
118
8(12)
17

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

(13)

(7)

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

(146)
67
(955)
48
(3)
(1,758)(117)
75(1,840)
100
(14)
(57)

(19)

Insurance claim income
Compensation for forced relocation
Restoration expenses on facilities
Loss on valuation of shares of subsidiaries and associates
Decrease (increase) in trade receivables－－－(453)

(100)
(255)
282
45(1,399)

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

(652)
(259)

(338)
(65)

Other, net

(815)

57

Subtotal

2,364

2,369

Interest and dividends income
Interest expenses
Income taxes paid

933
(69)
(1,094)

1,616
(71)
(712)

Income taxes refund
Proceeds from insurance income
Proceeds from compensation for forced relocation
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
Proceeds from sales of property plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change in scope ofconsolidation
Other, net
Net cash provided by (used in) investing activities

―7―

078

19100
255

－
2,153

3,637(277)292(2,844)(351)
326(3,605)

3(0)
3,311

54(0)
98－(589)

(195)

428

290

(3,637)

(Millions of Yen)
Six Months ended
September 30, 2022
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term borrowings
Repayments of long-term loans payable
Redemption of bonds
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests(920)

Six Months ended
September 30, 2023

Other, net－(2,483)(35)(1,260)
(858)
(72)
0

1,599
966
(2,190)
(40)
(337)
(594)
(60)
(8)

Net cash provided by (used in) financing activities(5,629)(665)

Net increase (decrease) in cash and cash equivalents(3,185)(666)

Cash and cash equivalents at beginning of period

11,722

9,974

Cash and cash equivalents at end of period

8,537

9,308

―8―

Segment Information
Information on Net Sales, Profit/Loss of Each Reportable Segment
Six Months ended September 30, 2022
(Millions of yen)
Industrial
Material

HouseholdProductsSpecial
Material

Environment
RelatedAdjustment Consolidated(Note 1)
(Note 2)Total

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)42,071

520

718

61

(34)

1,264

731,337

Segment profit or loss

Six Months ended September 30, 2023
(Millions of yen)
Industrial
Material

HouseholdProductsSpecial
Material

Environment
RelatedAdjustment Consolidated(Note 1)
(Note 2)Total

Net sales
Sales to outside

20,019

9,795

8,918

3,881

42,615－42,615Intersegment sales andtransfers

1,353

547

104

1,408

3,412

(3,412)－

Total

21,372

10,342

9,022

5,290

46,028(3,412)

42,615

521

(71)

258

23732

51783

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―