Tokushu Tokai Paper : Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (unaudited)

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 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]

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:	No

(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 to
						owners of parent
Fiscal Year ended	Millions of yen		%		Millions of yen	%	Millions of yen	%		Millions of yen	%
March 31, 2021	76,403		(5.2)		3,227	12.4		5,970	10.8		5,594	51.4
March 31, 2020	80,603		(1.6)		2,870	(8.7)		5,389	0.7		3,694	(12.3)
Note: Comprehensive income
Fiscal year ended March 31, 2021				5,879 million yen		89.4%
Fiscal year ended March 31, 2020			3,104	million yen		(14.1)%
	Basic earnings		Diluted earnings		Return on equity	Ordinary income to	Operating income to
	per share			per share					total assets			net sales
Fiscal Year ended	Yen				Yen			%			%		%
March 31, 2021	416.30			414.57			7.8			4.6		4.2
March 31, 2020	266.07			265.07			5.3			4.1		3.6

(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		80,286		57.3	5,493.99
As of March 31, 2020	132,655		77,678		53.5	5,105.28
Reference: Equity	As of March 31, 2021	73,428 million yen
	As of March 31, 2020	70,908 million yen

(3) Consolidated Cash Flow

	Net cash provided by	Net cash provided by	Net cash provided by	Cash and cash
	(used in)	(used in)	(used in)	equivalents at end of
	operating activities	investing activities	financing activities	period
Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
March 31, 2021	11,638	893	(9,242)	13,197
March 31, 2020	11,014	(9,598)	(234)	9,908

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2. Dividends

		Annual Dividends per share			Dividend	Dividends to
	1st quarter	2nd quarter	3rd quarter	End of	Total	Total dividends	payout ratio	net assets
	end	end	end	fiscal year		(Consolidated)	(Consolidated)
Fiscal year ended	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
March 31, 2020	－	25.00	－	50.00	75.00	1,041	28.2	1.5
March 31, 2021	－	25.00	－	75.00	100.00	1,336	24.0	1.9
Fiscal year ending		50.00		50.00	100.00		37.3
March 31, 2022	－	－
(Forecast)

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		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
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:		No
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:

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:
Fiscal year ended March 31, 2021	13,438,563 shares
Fiscal year ended March 31, 2020	13,886,942 shares

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(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		%	Millions of yen	%	Millions of yen		%	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
	Basic earnings per share	Diluted earnings per share
Fiscal year ended			Yen		Yen
March 31, 2021			349.72		348.26
March 31, 2020			160.09		159.48
(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			73,233		60,925			83.0		4,545.29
As of March 31, 2020			77,143		59,590			77.1		4,279.81
Reference: Equity	As of March 31, 2021	60,748	million yen
	As of March 31, 2020	59,443	million yen

*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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Consolidated Financial Statements

(1) Consolidated Balance Sheets

		(Millions of Yen)
	As of March 31, 2020	As of March 31, 2021
Assets
Current assets
Cash and deposits	10,175	13,532
Notes and accounts receivable - trade	25,109	24,428
Merchandise and finished goods	4,369	4,241
Work in process	793	728
Raw materials and supplies	5,519	4,640
Other	1,256	921
Allowance for doubtful accounts	(23)	(15)
Total current assets	47,200	48,478
Non-current assets
Property, plant and equipment
Buildings and structures	49,399	50,332
Accumulated depreciation	(32,053)	(33,146)
Buildings and structures, net	17,346	17,185
Machinery, equipment and vehicles	158,863	160,135
Accumulated depreciation	(128,847)	(131,081)
Machinery, equipment and vehicles, net	30,015	29,053
Land	13,060	12,134
Construction in progress	2,271	1,425
Other	6,543	6,597
Accumulated depreciation	(5,397)	(5,424)
Other, net	1,145	1,172
Total property, plant and equipment	63,839	60,971
Intangible assets
Goodwill	1,426	1,271
Other	350	416
Total intangible assets	1,776	1,688
Investments and other assets
Investment securities	18,314	15,593
Deferred tax assets	565	553
Other	1,001	847
Allowance for doubtful accounts	(41)	(41)
Total investments and other assets	19,839	16,952
Total non-current assets	85,455	79,612
Total assets	132,655	128,091

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		(Millions of Yen)
	As of March 31, 2020	As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	10,913	10,075
Short-term loans payable	11,405	6,445
Current portion of long-term loans payable	7,267	4,156
Current portion of bonds	70	70
Income taxes payable	474	1,160
Provision for bonuses	425	422
Provision for environmental measures	0	35
Other	8,166	8,492
Total current liabilities	38,723	30,858
Non-current liabilities
Bonds payable	508	420
Long-term loans payable	11,506	13,728
Deferred tax liabilities	1,253	725
Provision for directorsʼ retirement benefits	55	64
Provision for environmental measures	53	52
Provision for business structure improvement	557	－
Net defined benefit liability	1,636	1,230
Asset retirement obligations	621	658
Other	60	67
Total non-current liabilities	16,254	16,946
Total liabilities	54,977	47,804
Net assets
Shareholdersʼ equity
Capital stock	11,485	11,485
Capital surplus	12,698	11,030
Retained earnings	47,910	52,476
Treasury shares	(4,494)	(5,000)
Total shareholdersʼ equity	67,599	69,991
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	3,657	3,474
Deferred gains or losses on hedges	0	－
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	77,678	80,286
Total liabilities and net assets	132,655	128,091

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