Summary of Consolidated Financial Results for the Six Months Ended September 30, 2021 (unaudited)

	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 [phone]

Quarterly securities report issuing date:	November 12, 2021
Dividend payment date:	December 6, 2021
Availability of support documentation:	Yes
Holding of financial result briefing:	Scheduled (for analysts and institutional investors)

(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				Operating income	Ordinary income	Profit attributable to
				owners of parent
Six Months ended	Millions of yen		%		Millions of yen	%	Millions of yen	%	Millions of yen	%
September 30, 2021	38,839		5.9		2,236	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
Note: Comprehensive income
Six Months ended September 30, 2021				3,705 million yen	105.6%
Six Months ended September 30, 2020				1,802 million yen	133.6%
	Basic earnings		Diluted earnings
	per share			per share
Six Months ended	Yen				Yen
September 30, 2021	258.40			257.37
September 30, 2020	226.28			225.39

(2) Consolidated Financial Position

	Total assets		Net assets	Equity ratio
	Millions of yen			Millions of yen	%
As of September 30, 2021	125,821			82,319	60.4
As of March 31, 2021	128,091			80,286	57.3
Reference: Equity	As of September 30, 2021	76,028 million yen
	As of March 31, 2021		73,428 million yen

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2. Dividends

		Annual Dividends per share
	1st quarter	2nd quarter	3rd quarter	End of	Total
	end	end	end	fiscal year
Fiscal year ended	Yen	Yen	Yen	Yen	Yen
March 31, 2021	－	25.00	－	75.00	100.00
March 31, 2022	－	50.00

Fiscal year ending

March 31, 2022－ 50.00 100.00 (Forecast)

Note: Revision to dividend forecasts published most recently: No

3. 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		Operating income	Ordinary income	Profit attributable to	Basic earnings
		owners of parent	per share
	Millions of yen	%	Millions of yen	% Millions of yen	% Millions of yen	%	Yen
Full fiscal year	81,000	6.0	3,600	11.5	5,000	(16.3)	3,600	(35.7)	267.89

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): 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:	Yes
2)	Changes in accounting policies other than 1) above:	No
3)	Changes in accounting estimates:	No
4)	Retrospective restatements:	No

[3] Number of issued shares (common shares)

1. Number of issued shares (including treasury shares) as of:

September 30, 2021	14,900,000 shares
March 31, 2021	14,900,000 shares

1. 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 the economy or a variety of other known and unknown factor.

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Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheets

		(Millions of Yen)
	As of March 31, 2021	As of September 30, 2021
Assets
Current assets
Cash and deposits	13,532	11,764
Notes and accounts receivable - trade	24,428	－
Notes and accounts receivable - trade, and contract assets	－	24,621
Merchandise and finished goods	4,241	4,002
Work in process	728	1,028
Raw materials and supplies	4,640	4,953
Other	921	609
Allowance for doubtful accounts	(15)	(14)
Total current assets	48,478	46,963
Non-current assets
Property, plant and equipment
Buildings and structures, net	17,185	16,987
Machinery, equipment and vehicles, net	29,053	30,154
Land	12,134	12,148
Other, net	2,598	1,598
Total property, plant and equipment	60,971	60,888
Intangible assets
Goodwill	1,271	1,200
Other	416	377
Total intangible assets	1,688	1,578
Investments and other assets
Investment securities	15,593	14,958
Deferred tax assets	553	622
Other	847	851
Allowance for doubtful accounts	(41)	(41)
Total investments and other assets	16,952	16,391
Total non-current assets	79,612	78,858
Total assets	128,091	125,821

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		(Millions of Yen)
	As of March 31, 2021	As of September 30, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	10,075	9,984
Short-term loans payable	6,445	5,945
Current portion of long-term loans payable	4,156	4,537
Current portion of bonds	70	70
Income taxes payable	1,160	953
Provision for bonuses	422	425
Provision for environmental measures	35	41
Other	8,492	6,921
Total current liabilities	30,858	28,878
Non-current liabilities
Bonds payable	420	385
Long-term loans payable	13,728	11,274
Deferred tax liabilities	725	876
Provision for directorsʼ retirement benefits	64	71
Provision for environmental measures	52	52
Net defined benefit liability	1,230	1,238
Asset retirement obligations	658	653
Other	67	72
Total non-current liabilities	16,946	14,624
Total liabilities	47,804	43,502
Net assets
Shareholdersʼ equity
Capital stock	11,485	11,485
Capital surplus	11,030	10,922
Retained earnings	52,476	54,929
Treasury shares	(5,000)	(4,960)
Total shareholdersʼ equity	69,991	72,376
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	3,474	3,673
Deferred gains or losses on hedges	－	0
Remeasurements of defined benefit plans	(37)	(22)
Total accumulated other comprehensive income	3,436	3,651
Share acquisition rights	176	164
Non-controlling interests	6,681	6,126
Total net assets	80,286	82,319
Total liabilities and net assets	128,091	125,821

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1. Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of ComprehensiveIncome
   Quarterly Consolidated Statements of Income

		(Millions of Yen)
	Six Months ended	Six Months ended
	September 30, 2020	September 30, 2021
Net sales	36,663	38,839
Cost of sales	31,866	32,882
Gross profit	4,797	5,957
Selling, general and administrative expenses	3,933	3,720
Operating income	864	2,236
Non-operating income
Interest income	0	0
Dividend income	207	138
Rent income	64	63
Insurance income	68	35
Share of profit of entities accounted for using equity method	1,000	667
Other	108	130
Total non-operating income	1,450	1,035
Non-operating expenses
Interest expenses	108	70
Other	27	60
Total non-operating expenses	136	130
Ordinary income	2,177	3,140
Extraordinary income
Gain on sales of non-current assets	7	1,490
Gain on sales of investment securities	1,936	－
National subsidies	－	84
Gain on extinguishment of tie-in shares	－	57
Other	11	4
Total extraordinary income	1,955	1,636
Extraordinary losses
Loss on sales of non-current assets	36	－
Loss on retirement of non-current assets	211	84
Provision for environmental measures	23	－
Other	－	8
Total extraordinary losses	270	93
Profit before income taxes	3,862	4,683
Income taxes - current	831	1,198
Income taxes - deferred	(23)	(6)
Total income taxes	808	1,192
Profit	3,053	3,491
Profit (loss) attributable to non-controlling interests	(3)	35
Profit attributable to owners of parent	3,057	3,455

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