Tokai Tokyo Financial : Consolidated Financial Summary (for the year ended March 31, 2022)

Member of the Financial Accounting Standards Foundation

Consolidated Financial Summary (for the year ended March 31, 2022)

April 28, 2022

Company Name: Tokai Tokyo Financial Holdings, Inc.

Stock Listings: Tokyo Stock Exchange/Nagoya Stock Exchange

Stock Code:	8616
Representative:	Ichirou Gouda, President
Contact:	Junichi Takahashi

URL:http://www.tokaitokyo-fh.jp/

General Manager - Finance Planning Department

Telephone: [phone]

Scheduled date for general meeting of shareholders: June 28, 2022

Scheduled date for filing securities report: June 28, 2022

Scheduled day of commencing dividend payment: June 29, 2022 Supplementary explanation documents for earnings: Yes

Earnings presentation for the fiscal year: Yes (for financial analysts and institutional investors)

(Figures are rounded down to the nearest one million yen and those in parentheses are negative figures.)

1. Consolidated Financial Results for the Year Ended March 31, 2022 (from April 1, 2021 to March 31, 2022)

(1) Consolidated Results of Operation

(Figures in percentages denote the year-on-year change.)

Year ended

March 31,2022

March 31,2021

yen 52.94 36.62

yen 52.79 36.62

%

12.2 13.3

(Reference) Share of profit of entities accounted for using equity method March 31, 2022: 1,179 million yen March 31, 2021: 1,591 million yen (Note) From the current consolidated fiscal year, 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

As of

March 31,2022

March 31,2021

(Reference) Shareholders' equity

Total assets	Net assets	Net asset per share
million yen	million yen	%	yen
1,581,231	185,568	10.9	694.86
1,416,569	172,684	11.7	666.65

March 31, 2022: 172,730 million yen

Equity ratio

March 31, 2021: 165,572 million yen

(3) Consolidated Cash Flows Position

Year ended

March 31,2022

March 31,2021

2. Dividends

Cash flows from operation

Cash flows	Cash flows	Cash and
from investment	from financing	cash equivalents
million yen	million yen	million yen	million yen
5,672	(23,011)	32,355	98,442
(73,074)	(12,397)	104,805	81,950
Dividend per share	Total cash

(Note) 1) 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.

2) 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.

3. Forecast of Consolidated Operating Results for Fiscal 2022 (from April 1, 2022 to March 31, 2023)

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

• (2) Changes in Accounting Policies or Estimates and Retrospective Restatements

  • 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

• (3) Number of Shares Issued (Common Stock)

  • 1) Number of shares issued at the end of the term including treasury shares

    As of March 31, 2022: 260,582,115 As of March 31, 2021: 260,582,115

  • 2) Number of treasury shares at the end of the term

    As oMf Maracrhch313,12,021012:2: 11,999,455 As of March 31, 2021: 12,218,314

  • 3) Average number of shares outstanding

Year ended March 31, 2022: 248,425,425

Year ended March 31, 2021: 248,364,809

(Reference)

Non-consolidated Financial Results for the Year Ended March 31, 2022 (from April 1, 2021 to March 31, 2022)

(1) Non-consolidated Results of Operations

(Figures in percentages denote the year-on-year change.)

Net income per share

Operating revenue	Operating profit	Ordinary profit	Net income
Year ended March 31,2022 March 31,2021	million yen % 15,395 86.7 8,244 (54.0)	million yen 6,066 (624) % － －	million yen 6,811 % － 264 (97.6)	million yen 6,349 % － 213 (98.0)

Diluted net income per share

Year ended

yen

yen

March 31,2022

March 31,2021

25.56 0.86

25.49 0.86

(Note) From the current fiscal year, the Company has made changes in the presentation method. Therefore, the operating income of previous year's Non-consolidated results of operation reflect that.

(2) Non-consolidated financial position

Total assets	Net assets	Equity ratio	Net assets per share
As of March 31,2022 March 31,2021	million yen 251,859 206,114	million yen 109,451 109,030	% 43.3 52.7	yen 438.30 437.21

March 31, 2022: 108,954 million yen

(Reference) Shareholders' equity

March 31, 2021: 108,587 million yen

• * This consolidated financial summary is exempt from certified public accountant and audit corporations

• * Note to proper use of forecast of operating results and other special remarks

  Dividends for the fiscal year ending March 31, 2023 have not been determined because it is difficult to forecast operating results, as described similarly in "3.Forecast of Consolidated Operating Results for Fiscal 2022.''

• * How to view supplementary explanation documents for earnings

  Supplementary explanation documents for earnings will be available on both Timely Disclosure network and our website on Thursday, April 28, 2022.

Consolidated Financial Statements

(1) Consolidated Balance Sheets

Assets

Current assets

Cash and deposits

Cash segregated as deposits

Cash segregated as deposits for customers

Cash segregated as deposits for others

Trading products

Trading securities and other

Derivatives

Margin transaction assets

Loans on margin transactions

Cash collateral pledged for securities borrowing on margin

transactions

Loans secured by securities

Cash collateral pledged for securities borrowed

Loans on Gensaki transactions

Advances paid

Deposits paid for underwritten offering

Short-term guarantee deposits

Short-term loans receivable

Accrued income

Other

Allowance for doubtful accounts Total current assets Non-current assets

Property, plant and equipment

Buildings

Equipment

Land

Intangible assets

Goodwill

Software

Telephone subscription right

Other

Investments and other assets

Investment securities

Long-term guarantee deposits

Deferred tax assets

Retirement benefit asset

Other

Allowance for doubtful accounts Total non-current assets

As of March 31, 2021

(Unit: million yen)

As of March 31, 2022

83,589 100,360

83,622 74,648

80,800 71,225

2,821 3,423

588,098 529,440

583,391 518,527

4,706 10,913

100,450 135,347

34,362 43,335

66,087 92,011

407,829 551,583

28,756 95,899

379,072 455,683

8,395 6,006

－ 154

37,915 60,365

14,492 36,740

4,189 6,496

14,196 4,662

(101) (99)

1,342,676

1,505,707

10,740 10,478

3,914 3,855

3,525 3,322

3,300 3,300

5,594 7,585

1,514 1,247

2,532 5,879

34 33

1,513 425

57,557 57,459

48,155 44,206

3,862 5,511

35 66

4,446 6,618

1,423 1,389

(364) (332)

Total assets

73,893 1,416,569

75,523 1,581,231

(Unit: million yen)

As of	As of
March 31, 2021	March 31, 2022
Liabilities
Current liabilities
Trading products	379,293	444,613
Trading securities and other	370,371	431,959
Derivatives	8,921	12,653
Trade date accrual	9,240	78,170
Margin transaction liabilities	11,555	18,072
Borrowings on margin transactions	9,128	13,313
Cash received for securities lending on margin transactions	2,426	4,759
Borrowings secured by securities	368,671	326,725
Cash received on debt credit transaction of securities	4,123	54,073
Borrowings on Gensaki transactions	364,547	272,652
Deposits received	72,419	69,609
Guarantee deposits received	12,626	22,627
Short-term borrowings	244,786	234,364
Short-term bonds payable	16,000	14,500
Current portion of bonds payable	17,510	27,594
Income taxes payable	2,414	1,187
Provision for bonuses	2,283	2,387
Provision for bonuses for directors (and other officers)	57	70
Other	6,214	14,922
Total current liabilities	1,143,073	1,254,845
Non-current liabilities
Bonds payable	11,863	28,585
Long-term borrowings	84,200	107,300
Deferred tax liabilities	1,290	1,468
Provision for retirement benefits for directors (and other officers)	92	114
Retirement benefit liability	163	256
Other	2,566	2,389
Total non-current liabilities	100,176	140,114
Reserves under special laws
Reserve for financial instruments transaction liabilities	635	703
Total reserves under special laws	635	703
Total liabilities	1,243,884	1,395,663
Net assets
Shareholders' equity
Share capital	36,000	36,000
Capital surplus	24,587	24,569
Retained earnings	107,390	114,580
Treasury shares	(5,292)	(5,197)
Total shareholders' equity	162,685	169,952
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,490	1,083
Foreign currency translation adjustment	(571)	87
Remeasurements of defined benefit plans	1,967	1,607
Total accumulated other comprehensive income	2,886	2,778
Share acquisition rights	442	497
Non-controlling interests	6,669	12,340
Total net assets	172,684	185,568
Total liabilities and net assets	1,416,569	1,581,231

(2) Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income (Unit: million yen)Year ended March 31, 2021 Year ended March 31, 2022

Operating revenue

Commission received 31,173 37,575 Brokerage commission 13,936 13,929 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 1,076 1,333 6,461 9,939 Other fees received 9,700 12,372 Net trading income Financial revenue 34,008 33,998 4,180 9,401

Total operating revenue 69,362 80,975

Financial expenses 2,321 2,726

Net operating revenue 67,041 78,249 Selling, general and administrative expenses

Trading related expenses Personnel expenses Real estate expenses Office expenses Depreciation 10,210 13,127 27,501 32,320 6,794 7,732 6,756 8,645 3,185 2,902 Provision of allowance for doubtful accounts Taxes and dues 76 1 1,367 1,784 Other 1,463 1,852

Total selling, general and administrative expenses Operating profit 57,355 9,685 68,368 9,881 Non-operating income

Dividend income 630 672 Share of profit of entities accounted for using equity method Gain on investments in investment partnerships 1,591 1,179 530 462 Gain on sale of investment securities － 414 Gain on valuation of investment securities Other 291 438 190 173

Total non-operating income Non-operating expenses 3,234 3,341

Loss on investments in investment partnerships Foreign exchange losses 287 204 － 7 Other 83 31

Total non-operating expenses Ordinary profit 371 12,548 243 12,979