Tokai Tokyo Financial : Consolidated Financial Summary (for the nine months ended December 31, 2021)

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Consolidated Financial Summary (for the nine months ended December 31, 2021)

									January 28, 2022
Company Name:	Tokai Tokyo Financial Holdings, Inc.
Stock Listings:	First sections of the Tokyo Stock Exchange and Nagoya Stock Exchange
Stock Code:	8616			URL:http://www.tokaitokyo-fh.jp/
Representative:	Ichirou Gouda, President
Contact:	Junichi Takahashi
	General Manager - Finance Planning Department
	Telephone: [phone]
Expected date for submission of quarterly report:	February 9, 2022
Scheduled day of commencing dividend payment:
Supplementary explanation documents for quarterly earnings: Yes
Quarterly results briefing planned:			None
				(Figures are rounded down to the nearest one million yen and those in parentheses are negative figures.)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2021
(1) Consolidated Results of Operation						(Figures in percentages denote the year-on-year change.)
	Operating revenue	Net operating revenue	Operating income		Ordinary income		Profit attributable to
			owners of parent
Nine months ended	million yen	%	million yen	%	million yen	%	million yen	%	million yen	%

December 31,2021	62,071	24.1
December 31,2020	50,004	8.0
(Note) Comprehensive income
	Net income per share
Nine months ended		yen

60,364	25.5	9,294	62.2	11,190	57.1	12,259	141.0
48,111	7.1	5,730	－	7,121	－	5,087	102.9
Nine-month ended December 31, 2021:		12,652 million yen [111.5%]
Nine-month ended December 31, 2020:		5,983 million yen [202.9%]
Diluted net income
per share
	yen

December 31,2021	49.35	49.23
December 31,2020	20.48	－

(Note) We post no figure of diluted net income per share for the 3rd Quarter of FYE March 2021 as the Company has no potential stock that has  dilution effect.

(Note) From the 1st Quarter of FYE March, 2022 the Company has made changes in the presentation method. Therefore, the operating income of  previous year's consolidated results of operation reflect that.

(2) Consolidated Financial Position

Total assets	Net assets		Equity ratio	Net assets per share
As of	million yen	million yen	%	yen
December 31,2021	1,536,495	184,655		11.2	690.95
March 31,2021	1,416,569	172,684		11.7	666.65
(Reference) Shareholders' equity	December 31, 2021: 171,676 million yen	March 31, 2021: 165,572 million yen

2. Dividends

(Base date)

Fiscal year

Ended March 31, 2021 Ending March 31, 2022

Ending March 31, 2022 (Forecast)

Dividend per share

End of	End of	End of	End of year	Annual
first quarter	second quarter	third quarter
yen	yen	yen	yen	yen
－	8.00	－	14.00	22.00
－	10.00
			－	－

(Note) 1) Revision to the dividend forecast that has been disclosed lastly: None

2) The dividend of 8.00 yen at the end of second quarter for the year ending March 31, 2021 includes commemorative dividend   of 2.00 yen.

1. The dividend of 14.00 yen at the end of year for the year ended March 31, 2021 includes commemorative dividend   of 2.00 yen.
2. Dividend forecast for the fiscal year ending March 31, 2022 has not been determined.

3. Forecast of Consolidated Operating Results for Fiscal 2021 (from April 1, 2021 to March 31, 2022)

The Group operates principally in the financial instruments business, and its operating results are likely to be affected by market fluctuations. Due to such nature of its business and consequential difficulty in predicting its performance, the Group does not disclose the forecast of operating results.

• Notes
• 1. Important Changes in Subsidiaries during the Term (Changes Pursuant to the Subsidiaries that Lead to a Change in the Scope of

Consolidation): Yes

New : 2 companies (ACE Securities Co.,Ltd. , Maruhachi Securities Co.,Ltd. )

Exclusion : None

1. Application of Special Accounting Treatments in Preparing Quarterly Consolidated Financial Statements: None
2. Changes in Accounting Policies or Estimates and Retrospective Restatements
3. 1. Changes in accounting policies in accordance with revision of accounting standards: Yes
   2. Changes in accounting policies other than item 1) above: None
   3. Change in accounting estimates: None
   4. Retrospective restatements: None
4. Number of Shares Issued (Common Stock)
5. 1. Number of shares issued at the end of the term including treasury shares

	As of December 31, 2021:	260,582,115	As of March 31, 2021:	260,582,115
2)	Number of treasury shares at the end of the term
	As of December 31, 2021:	12,118,156	As of March 31, 2021:	12,218,314
3)	Average number of shares outstanding (for the nine months)
	Nine months ended December 31, 2021: 248,394,798	Nine months ended December 31, 2020: 248,365,067

• This consolidated financial summary is not subject to certified public accountant's or audit corporation's review.
• Note to proper use of forecast of operating results and other special remarks

Dividends for the fiscal year ending March 31, 2022 have not been determined because it is difficult to forecast operating results, as described similarly in "3.Forecast of Consolidated Operating Results for Fiscal 2021.''

* How to view supplementary explanation documents for quarterly earnings

Supplementary explanation documents for quarterly earnings will be available on both Timely Disclosure network and our website on Friday, January 28, 2021.

Consolidated Financial Statements

(1) Consolidated Balance Sheets

		(Unit: million yen)
	As of	As of
	March 31, 2021	December 31, 2021
Assets
Current assets
Cash and deposits	83,589	131,352
Cash segregated as deposits	83,622	77,224
Cash segregated as deposits for customers	80,800	74,001
Cash segregated as deposits for others	2,821	3,223
Trading products	588,098	548,584
Trading securities and other	583,391	543,265
Derivatives	4,706	5,319
Trade date accrual	－	2,598
Margin transaction assets	100,450	78,120
Loans on margin transactions	34,362	50,892
Cash collateral pledged for securities borrowing on margin	66,087	27,227
transactions
Loans secured by securities	407,829	543,904
Cash collateral pledged for securities borrowed	28,756	151,001
Loans on Gensaki transactions	379,072	392,903
Advances paid	8,395	614
Short-term guarantee deposits	37,915	38,022
Short-term loans receivable	14,492	31,766
Accrued income	4,189	3,740
Other	14,196	5,965
Allowance for doubtful accounts	(101)	(110)
Total current assets	1,342,676	1,461,785
Non-current assets
Property, plant and equipment	10,740	10,818
Intangible assets	5,594	6,890
Investments and other assets	57,557	57,001
Investment securities	48,155	43,953
Long-term guarantee deposits	3,862	5,450
Deferred tax assets	35	42
Retirement benefit asset	4,446	6,470
Other	1,423	1,440
Allowance for doubtful accounts	(364)	(355)
Total non-current assets	73,893	74,710
Total assets	1,416,569	1,536,495

		(Unit: million yen)
	As of	As of
	March 31, 2021	December 31, 2021
Liabilities
Current liabilities
Trading products	379,293	479,024
Trading securities and other	370,371	468,458
Derivatives	8,921	10,565
Trade date accrual	9,240	－
Margin transaction liabilities	11,555	24,719
Borrowings on margin transactions	9,128	23,266
Cash received for securities lending on margin transactions	2,426	1,452
Borrowings secured by securities	368,671	366,863
Cash received on debt credit transaction of securities	4,123	36,672
Borrowings on Gensaki transactions	364,547	330,190
Deposits received	72,419	99,004
Guarantee deposits received	12,626	17,292
Short-term borrowings	244,786	194,977
Short-term bonds payable	16,000	19,500
Current portion of bonds payable	17,510	24,350
Income taxes payable	2,414	702
Provision for bonuses	2,283	1,335
Provision for directors' bonuses	57	48
Other	6,214	8,413
Total current liabilities	1,143,073	1,236,232
Non-current liabilities
Bonds payable	11,863	22,885
Long-term borrowings	84,200	87,300
Deferred tax liabilities	1,290	2,014
Provision for retirement benefits for directors (and other officers)	92	102
Retirement benefit liability	163	221
Other	2,566	2,381
Total non-current liabilities	100,176	114,905
Reserves under special laws
Reserve for financial instruments transaction liabilities	635	702
Total reserves under special laws	635	702
Total liabilities	1,243,884	1,351,840
Net assets
Shareholders' equity
Share capital	36,000	36,000
Capital surplus	24,587	24,579
Retained earnings	107,390	113,689
Treasury shares	(5,292)	(5,249)
Total shareholders' equity	162,685	169,019
Accumulated other comprehensive income

Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans

Total accumulated other comprehensive income Share acquisition rights

Non-controlling interests Total net assets

Total liabilities and net assets

1,490	1,200
(571)	(167)
1,967	1,623
2,886	2,657
442	485
6,669	12,493
172,684	184,655
1,416,569	1,536,495

1. Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income
   (Nine months ended December 31)

	(Unit: million yen)
Nine months ended	Nine months ended
December 31, 2020	December 31, 2021

Operating revenue

Commission received Brokerage commission

Commission for underwriting, secondary distribution and solicitation for selling and others for professional investors

Fee for offering, secondary distribution and solicitation for selling and others for professional investors

22,684	28,823
10,364	10,817
747	913
4,414	8,033

Other fees received	7,157	9,058
Net trading income	25,117	28,001
Financial revenue	2,202	5,246
Total operating revenue	50,004	62,071
Financial expenses	1,892	1,707
Net operating revenue	48,111	60,364
Selling, general and administrative expenses
Trading related expenses	7,441	9,663
Personnel expenses	20,325	24,258
Real estate expenses	5,085	5,815
Office expenses	5,011	6,353
Depreciation	2,292	2,148
Taxes and dues	981	1,403
Provision of allowance for doubtful accounts	33	－
Other	1,208	1,426
Total selling, general and administrative expenses	42,381	51,069
Operating income	5,730	9,294
Non-operating income
Dividend income	223	341
Share of profit of entities accounted for using equity method	837	1,298
Gain on investments in investment partnerships	385	283
Other	146	131
Total non-operating income	1,592	2,055
Non-operating expenses
Loss on investments in investment partnerships	155	125
Foreign exchange losses	4	10
Other	40	23
Total non-operating expenses	200	159
Ordinary income	7,121	11,190