Tohto Suisan : Summary of Consolidated Financial Results for the Three Months Ended June 30,2020

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Three Months Ended June 30, 2020 (Based on Japanese GAAP)

				August 5, 2020
Company name:	Tohto Suisan Co., Ltd
Stock exchange listing:	Tokyo
Stock code:	8038	URL https://www.tohsui.co.jp
Representative:	President and Representative Director	Koh Ehara
Inquiries:	Operating Officer, Accounting Dept.	Hiroshi Tanaka	TEL [phone]
Scheduled date to file Quarterly Securities Report:	August 13, 2020
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	No
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended June 30, 2020 (from April 1, 2020 to June 30, 2020)

(1) Consolidated operating results (cumulative)								Percentages indicate year-on-year changes
	Net sales				Operating profit	Ordinary profit		Profit attributable to
						owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen			%	Millions of yen		%
Three months ended June 30, 2020	22,356	(21.9)		48	(42.3)		230		20.1		181		9.1
Three months ended June 30, 2019	28,643		4.4		84	(13.2)		192		(26.0)		165		(26.2)
	Earnings per share		Diluted earnings per share
			Yen					Yen
Three months ended June 30, 2020			46.02					-
Three months ended June 30, 2019			43.48					-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio			Net assets per share
	Millions of yen			Millions of yen					%				Yen
As of June 30, 2020		29,070					16,330				56.2		4,150.71
As of March 31, 2020		29,097					16,892				58.1		4,293.44
2. Cash dividends
						Annual dividends per share
	1st quarter-end	2nd quarter-end		3rd quarter-end	Fiscal year-end	Total
	Yen				Yen			Yen				Yen			Yen
Year ended March 31, 2020		-				-			-				65.00			65.00
Year ending March 31, 2021		-
Year ending March 31, 2021 (Forecast)						-			-				65.00			65.00

Note: Revision of cash dividend forecast most recently announced: Yes

The cash dividend forecast for the year ending March 31, 2021 had not been determined as it was difficult to calculate the consolidated financial results forecast. However, the Company announced the forecast based on judgements using information currently available.

For details, please refer to the "Notice Regarding Consolidated Financial Results Forecast and Cash Dividend Forecast" announced today.

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3. Forecast of consolidated financial results for the year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	100,000	(15.2)	1,000	(25.6)	1,200	(21.9)	900	(33.8)	228.75

Note: Revision of consolidated financial results forecast most recently announced: Yes

The forecast of the consolidated financial results for the fiscal year ending March 31, 2021 had not been determined as it was difficult to appropriately and reasonably calculate the impact of the spread of the novel coronavirus disease (COVID-19) on the results. However, the Company announced the forecast based on judgements using information currently available.

For details, please refer to the "Notice Regarding Consolidated Financial Results Forecast and Cash Dividend Forecast" announced today.

4. Notes

1. Changes in significant subsidiaries during the three months ended June 30, 2020 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of June 30, 2020	4,026,000	shares	As of March 31, 2020	4,026,000	shares
Number of treasury shares at the end of the period
	As of June 30, 2020	91,614	shares	As of March 31, 2020	91,550	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2020	3,934,424	shares	Three months ended June 30, 2019	3,817,236	shares

• Quarterly financial results reports are exempt from quarterly review procedures conducted by certified public accountants or an audit corporation.
• Proper use of forecasts of financial results, and other special matters

The forward-looking statements, including the earnings forecasts, shown in this document are based on information currently available to the Company and on certain assumptions deemed to be reasonable. These statements do not purport that the Company pledges to realize such statements. Actual results may differ substantially due to various factors.

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2020	As of June 30, 2020
Assets
Current assets
Cash and deposits	7,385	8,014
Notes and accounts receivable - trade	6,417	5,598
Merchandise and finished goods	2,677	2,928
Work in process	7	11
Raw materials and supplies	49	49
Other	480	598
Allowance for doubtful accounts	(490)	(462)
Total current assets	16,527	16,737
Non-current assets
Property, plant and equipment
Buildings and structures, net	3,726	3,641
Land	3,167	3,157
Other, net	1,035	960
Total property, plant and equipment	7,929	7,758
Intangible assets	2,159	2,083
Investments and other assets
Other	2,727	2,688
Allowance for doubtful accounts	(247)	(198)
Total investments and other assets	2,480	2,490
Total non-current assets	12,569	12,333
Total assets	29,097	29,070
Liabilities
Current liabilities
Notes and accounts payable - trade	2,729	2,496
Short-term borrowings	2,581	2,706
Income taxes payable	157	22
Provision for bonuses	70	111
Other	853	846
Total current liabilities	6,393	6,182
Non-current liabilities
Long-term borrowings	2,903	3,638
Retirement benefit liability	1,065	1,070
Provision for share-based remuneration	30	30
Asset retirement obligations	127	127
Other	1,683	1,689
Total non-current liabilities	5,811	6,557
Total liabilities		12,204	12,740

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			(Millions of yen)
		As of March 31, 2020	As of June 30, 2020
Net assets
Shareholders' equity
Share capital	2,376	2,376
Capital surplus	1,085	1,085
Retained earnings	13,620	13,542
Treasury shares	(196)	(196)
Total shareholders' equity	16,885	16,807
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	241	267
Deferred gains or losses on hedges	-	1
Revaluation reserve for land	360	360
Foreign currency translation adjustment	(534)	(1,047)
Remeasurements of defined benefit plans	(60)	(59)
Total accumulated other comprehensive income	6	(477)
Total net assets	16,892	16,330
Total liabilities and net assets		29,097	29,070

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Millions of yen)
		Three months ended	Three months ended
		June 30, 2019	June 30, 2020
Net sales	28,643	22,356
Cost of sales	27,193	21,224
Gross profit	1,449	1,132
Selling, general and administrative expenses	1,364	1,083
Operating profit	84	48
Non-operating income
Interest income	17	12
Dividend income	56	76
Foreign exchange gains	-	73
Subsidy income	33	-
Gain on valuation of currency swaps	8	-
Other	9	33
Total non-operating income	124	195
Non-operating expenses
Interest expenses	7	5
Foreign exchange losses	6	-
Other	3	7
Total non-operating expenses	17	13
Ordinary profit	192	230
Extraordinary losses
Loss on valuation of investment securities	-	29
Total extraordinary losses	-	29
Profit before income taxes	192	201
Income taxes - current	44	15
Income taxes - deferred	(17)	4
Total income taxes	26	19
Profit	165	181
Profit attributable to owners of parent		165	181

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Consolidated statements of comprehensive income (cumulative)

		(Millions of yen)
	Three months ended	Three months ended
	June 30, 2019	June 30, 2020
Profit	165	181
Other comprehensive income
Valuation difference on available-for-sale securities	(80)	25
Deferred gains or losses on hedges	(0)	1
Foreign currency translation adjustment	76	(512)
Remeasurements of defined benefit plans, net of tax	3	1
Total other comprehensive income	(1)	(484)
Comprehensive income	164	(302)
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	164	(302)
Comprehensive income attributable to non-controlling	-	-
interests

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