Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2021
(unaudited) (Based on Japanese GAAP)
November 12, 2021
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:

Director, Managing Executive Officer, CFO

Tsuneo Sekine

TEL +81-3-3281-8581

Quarterly securities report issuing date:November 12, 2021

Dividend payment date:

December 6, 2021

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, 2021 (April 1, 2021 – September 30,2021)(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

Profit attributable toowners of parent% Millions of yen%

September 30, 2021

38,8395.92,236

158.8

3,140

44.2

3,455

13.0

September 30, 2020

36,663

(8.0)

864

5.2

2,177

4.9

3,057

136.9

3,705 million yen
1,802 million yen

105.6%
133.6%

Note: Comprehensive income
Six Months ended September 30, 2021
Six Months ended September 30, 2020
Basic earnings
per share
Yen

Diluted earnings
per share
Yen

September 30, 2021

258.40257.37

September 30, 2020

226.28225.39Six Months ended(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

Millions of yen%

As of September 30, 2021

125,82182,319

60.4

As of March 31, 2021

128,091

80,286

57.3

Reference: Equity

As of September 30, 2021
As of March 31, 2021

―1―Equity ratio

76,028 million yen
73,428 million yen

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, 2021

－25.00－75.00

100.00March 31, 2022

－50.00－50.00100.00Fiscal year ending
March 31, 2022
(Forecast)

Note: Revision to dividend forecasts published most recently: No3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 –March 31, 2022)(% 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
6.0

3,600

% Millions of yen
11.5

Profit attributable toowners of parent% Millions of yen%

Ordinary income

5,000 (16.3)

Basic earnings
per shareYen

3,600 (35.7)

267.89Note: 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:

YesNo
No
No

[3] Number of issued shares (common shares)(i) Number of issued shares (including treasury shares) as of:
September 30, 2021
14,900,000 shares
March 31, 2021
14,900,000 shares(ii) Number of treasury shares as of:
September 30, 2021
1,522,418 shares
March 31, 2021
1,534,775 shares(iii) Average number of shares during the period:
Six months ended September 30, 2021
13,371,851shares
Six months ended September 30, 2020
13,511,330 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
Notes and accounts receivable - trade, and contract assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Other

As of March 31, 2021

As of September 30, 2021

13,532
24,428

11,764

－
4,241
728
4,640
921

－
24,621
4,002
1,028
4,953
609

(15)

(14)

48,47846,963

Buildings and structures, net

17,185

16,987

Machinery, equipment and vehicles, net

29,05330,154Land

12,134

12,148Other, net

2,598

1,598

Total property, plant and equipment

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

60,97160,888Intangible assets
Goodwill

1,271

1,200

Other416377

Total intangible assets

1,688

1,578

Investments and other assets
Investment securities
Deferred tax assets
Other

15,593553
847

14,958622
851

Allowance for doubtful accounts

(41)

(41)

Total investments and other assets

16,952

16,391

Total non-current assets
Total assets―3―

79,61278,858128,091

125,821

(Millions of Yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade

As of September 30, 2021

10,075

9,984

Short-term loans payable
Current portion of long-term loans payableCurrent portion of bonds

6,445
4,156
70

5,945
4,537
70

Income taxes payable
Provision for bonuses

1,160
422

953
425

Provision for environmental measures

3541

Other

8,492

6,921

Total current liabilities

30,85828,878420
13,728
725
64
52
1,230
658

385
11,274
876
71
52
1,238
653

67

72

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

16,946

14,624Total liabilities

47,80443,502

Net assets
Shareholdersʼ equity
Capital stock
Capital surplus
Retained earnings

11,485
11,03052,476

11,485
10,922
54,929Treasury shares(5,000)(4,960)Total shareholdersʼ equity

69,991

72,376

3,474

3,673
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

(37)

(22)

Total accumulated other comprehensive income

3,436

3,651

Share acquisition rights

176

164Non-controlling interests

6,681

6,126

Total net assets
Total liabilities and net assets―4―80,286

82,319128,091

125,821

(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, 2020
36,66331,866Six Months ended
September 30, 2021
38,83932,882Gross profit

4,797

5,957

Selling, general and administrative expenses

3,933

3,720

864

2,2360207
64
68
1,00001386335667

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

108

130

1,450

1,035

108

70

Other

2760

Total non-operating expenses

136

130

2,177

3,140

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

7

1,490

1,936

National subsidies
Gain on extinguishment of tie-in shares
Other－－11－
84
57
4

1,955

1,636

36
211
23－84－8Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Provision for environmental measures
Other－27093

Profit before income taxes

3,862

4,683

Income taxes - current
Income taxes - deferred

831

1,198

(23)

(6)

Total extraordinary losses

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

―5―

808

1,192

3,053

3,491

(3)

35

3,057

3,455

Quarterly Consolidated Statements of Comprehensive Income(Millions of Yen)
Six Months ended
September 30, 2020
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, 2021

3,053

3,491

(1,281)(0)31189
015(0)

8(1,251)

214

Comprehensive income

1,802

3,705

Comprehensive income attributable toOwners of parent
Non-controlling interests

1,800
2

3,670
35

Total other comprehensive income―6―(3) Quarterly Consolidated Statement of Cash Flows(Millions of Yen)
Six Months ended
September 30, 2020

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, 2021

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

4,683
3,023
71
(0)
230

Increase (decrease) in provision for retirement benefits for directors(and other officers)(2)

7Interest and dividend incomeInterest 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
Subsidy income
Decrease (increase) in notes and accounts receivable - trade

(207)
108
(1,000)211
28(1,936)(138)
70(667)84(1,490)－2,231－(84)(183)

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade(69)(1,519)

(370)
(91)

Other, net(309)146

Subtotal4,697

5,094Interest and dividends income
Interest expenses
Income taxes paid

1,602(102)
(719)

1,674
(71)
(1,429)

Income taxes refund
Proceeds from insurance income

282
67

92
35

5,827

5,396

(219)
196
(4,237)(243)
252(4,486)

Payments for retirement of property, plant and equipment
Proceeds from sales of property plant and equipment
Goverment subsidy
Purchase of investment securities

(427)
30

(82)
1,642
84

Proceeds from sales of investment securities
Purchase of shares of subsidiaries and associates
Other, net

3,708－(6)－23(53)(28)

Net cash provided by (used in) investing activities(956)(2,892)

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

－(0)

―7―

(Millions of Yen)
Six Months ended
September 30, 2020
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable

Six Months ended
September 30, 2021

6,730
3,049

(500)
－(2,106)(35)(0)(1,000)(60)(629)

Repayments of long-term loans payable
Redemption of bonds
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Other, net(5,912)(53)(2,175)
(694)
(99)

00

Net cash provided by (used in) financing activities

845(4,332)0－(1,828)－

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

5,716

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting frommerger with unconsolidated subsidiaries

9,908－

13,19769

Cash and cash equivalents at end of period

15,624

11,438―8―

Segment Information
Information on Net Sales, Profit/Loss of Each Reportable Segment
Six Months ended September 30, 2020
(Millions of yen)
Industrial
Material
Net sales
Sales to outside
Intersegment sales andtransfers
Total
Segment profit or loss

HouseholdProducts

SpecialMaterial

Environment
RelatedAdjustment Consolidated(Note 1)
(Note 2)

Total

17,425

8,116

8,140

2,981

36,663－36,663922

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

Six Months ended September 30, 2021
(Millions of yen)
Industrial
Material
Net sales
Sales to outside
Intersegment sales andtransfers
TotalSegment profit or loss

HouseholdProducts

SpecialMaterial

Environment
Related

Total

Adjustment Consolidated(Note 1)
(Note 2)

18,252

10,099

8,151

2,336

38,839－38,839

946

307

95

1,088

2,437

(2,437)－

19,19910,406

8,246

3,424

41,277(2,437)

38,8396051,526349(180)

2,300

(64)

2,236

Notes:
1. “Adjustment” comprises the following:

Segment profit

Corporate expenses
Elimination, etc.
Total

Six Months ended
September 30, 2020
(135)
72(63)Six Months ended
September 30, 2021
(135)
71(64)

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

Statements of Income.

―9―