Tokai Tokyo Financial : Consolidated Financial Summary (for the year ended March 31, 2017)

Member of the Financial Accounting Standards Foundation

April 28, 2017

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: Tateaki Ishida, President & CEO

Contact: Tetsuji Oono

Executive officer, General Manager - Finance Planning Department Telephone: (03) 3517-8391

Scheduled date for general meeting of shareholders: June 29, 2017 Scheduled date for filing securities report: June 29, 2017 Scheduled day of commencing dividend payment: June 30, 2017 Earnings supplementary explanatory documents: Available

Earnings presentation for the fiscal year: Available (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, 2017(from April 1, 2016 to March 31, 2017)

2. 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
   Year ended	million yen %	million yen %	million yen %	million yen %	million yen %
   March 31,2017	65,412 (3.2)	63,728 (3.8)	9,497 (24.9)	13,269 (13.3)	11,990 (3.5)
   March 31,2016	67,584 (18.3)	66,277 (18.6)	12,643 (49.6)	15,297 (46.4)	12,423 (32.8)

   (Note) Comprehensive income:

   March 31, 2017: 10,709 million yen [4.0%]

   March 31, 2016: 10,295 million yen [(53.6)%]

   	Net income per share	Diluted net income per share	Return on equity	Return on assets	Operating income/ Operating revenue
   Year ended	yen	yen	%	%	%
   March 31,2017	45.73	45.72	7.8	2.0	14.5
   March 31,2016	46.92	46.87	8.1	3.0	18.7

   (Reference) Equity in earnings of affiliates

   March 31, 2017:

   2,058 million yen

   March 31, 2016:

   948 million yen

3. Consolidated Financial Position

   	Total assets	Net assets	Equity ratio	Net asset per share
   As of	million yen	million yen	%	yen
   March 31,2017	741,935	157,229	20.9	593.47
   March 31,2016	568,548	155,204	26.9	580.16

   (Reference) Shareholders' equity March 31, 2017: 155,312 million yen March 31, 2016: 153,089 million yen

4. Consolidated Cash Flows Position

   	Cash flows from operation	Cash flows from investment	Cash flows from financing	Cash and cash equivalents
   Year ended	million yen	million yen	million yen	million yen
   March 31,2017	2,944	(8,507)	35,864	72,043
   March 31,2016	12,302	(775)	(21,829)	44,615

5. Dividends

   (Base date)	Dividend per share					Total cash dividends (annual)	Dividends payout ratio (consolidated)	Net assets dividend ratio (consolidated)
   	End of first quarter	End of second quarter	End of third quarter	End of year	Annual
   Ended March 31, 2016	yen －	yen 14.00	yen －	yen 14.00	yen 28.00	million yen 7,387	% 59.7	% 4.8
   Ended March 31, 2017	－	12.00	－	14.00	26.00	6,803	56.9	4.4
   Ending March 31, 2018 (Forecast)	－	－	－	－	－	－

6. Forecast of Consolidated Operating Results for Fiscal 2017 (from April 1, 2017 to March 31, 2018)

   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.

7. Others

8. Important Changes in Subsidiaries during the Term (Changes Pursuant to the Subsidiaries that Lead to a Change in the Scope of Consolidation): None

   New : None

   Exclusion : None

9. Changes in Accounting Policies or Estimates and Retrospective Restatements

10. Changes in accounting policies in accordance with revision of accounting standards: Yes

11. Changes in accounting policies other than item 1) above: None

12. Change in accounting estimates: None

13. Retrospective restatements: None

14. Number of Shares Issued (Common Stock)

15. Number of shares issued at the end of the term including treasury stock (shares)

    As of March 31, 2017: 280,582,115

    As of March 31, 2016:

    280,582,115

16. Number of treasury stock at the end of the term (shares)

    As of March 31, 2017: 18,877,456

17. Average number of shares outstanding

18. As of March 31, 2016:

    16,706,568

    Year ended March 31, 2017: 262,181,966

    Year ended March 31, 2016: 264,796,756

    (Reference)

    Non-consolidated Financial Results for the Year Ended March 31, 2017(from April 1, 2016 to March 31, 2017)

    	Operating revenue	Operating income	Ordinary income	Net income
    Year ended March 31,2017 March 31,2016	million yen % 13,520 (12.4) 15,425 (20.3)	million yen % 6,554 (35.8) 10,203 (25.2)	million yen % 7,927 (30.1) 11,335 (22.3)	million yen % 8,231 (34.9) 12,640 (8.3)
    	Net income per share	Diluted net income per share
    Year ended March 31,2017 March 31,2016	yen 31.39 47.74	yen 31.38 47.69

19. Non-consolidated Results of Operations

20. Non-consolidated financial position

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

	Total assets	Net assets	Equity ratio	Net assets per share
As of	million yen	million yen	%	yen
March 31,2017	185,931	110,087	59.0	418.96
March 31,2016	161,343	110,912	68.5	419.08

(Reference) Shareholders' equity March 31, 2017: 109,643 million yen March 31, 2016: 110,585 million yen

• This consolidated financial summary is exempt from audit procedure

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

Dividends payments for the fiscal year ending March 31, 2018 have not been determined because it is difficult to forecast operating results, similarly as described in "3.Forecast of Consolidated Operating Results for Fiscal 2017.''

Consolidated Financial Statements
(1) Consolidated Balance Sheets
(Unit: million yen)
As of March 31, 2016	As of March 31, 2017
Assets
Current assets
Cash and deposits	45,204	72,683
Cash segregated as deposits	28,711	37,506
Cash segregated as deposits for customers	27,905	36,900
Cash segregated as deposits for others	806	606
Trading products	259,234	292,495
Trading securities and other	255,620	289,264
Derivatives	3,613	3,230
Margin transaction assets	41,375	44,610
Loans on margin transactions	31,714	31,880
Cash collateral pledged for securities borrowing on margin transactions	9,660	12,730
Loans secured by securities	134,042	214,992
Cash collateral pledged for securities borrowed	134,042	214,992
Advances paid	76	1,252
Short-term guarantee deposits	11,696	18,995
Short-term loans receivable	115	156
Short-term investment securities	－	0
Accrued income	1,944	1,725
Deferred tax assets	208	1,254
Other	2,680	2,912
Allowance for doubtful accounts	(31)	(32)
Total current assets	525,258	688,551
Noncurrent assets
Property, plant and equipment	10,203	8,561
Buildings	3,031	2,887
Equipment	2,246	2,011
Land	4,925	3,663
Intangible assets	2,426	5,196
Goodwill	－	2,804
Software	2,283	2,262
Telephone subscription right	142	129
Investments and other assets	30,660	39,627
Investment securities	25,071	34,054
Long-term guarantee deposits	2,089	2,416
Net defined benefit asset	2,697	2,317
Other	2,138	1,244
Allowance for doubtful accounts	(1,335)	(405)
Total noncurrent assets	43,290	53,384
Total assets	568,548	741,935

(Unit: million yen)
As of March 31, 2016	As of March 31, 2017
Liabilities
Current liabilities
Trading products	137,111	192,454
Trading securities and other	129,790	185,261
Derivatives	7,321	7,192
Trade date accrual	15,261	7,540
Margin transaction liabilities	5,708	9,132
Borrowings on margin transactions	3,733	6,182
Cash received for securities lending on margin transactions	1,975	2,950
Loans payable secured by securities	68,538	131,164
Cash received on debt credit transaction of securities	68,538	131,164
Deposits received	18,852	32,925
Guarantee deposits received	10,605	8,360
Short-term loans payable	81,052	80,488
Short-term bonds payable	9,800	9,300
Current portion of bonds	35,855	31,044
Income taxes payable	533	1,860
Provision for bonuses	1,721	2,244
Provision for directors' bonuses	41	46
Other	3,575	3,836
Total current liabilities	388,658	510,399
Noncurrent liabilities
Bonds payable	1,950	8,983
Long-term loans payable	19,700	61,731
Deferred tax liabilities	470	1,241
Provision for directors' retirement benefits	83	103
Net defined benefit liability	465	458
Other	1,576	1,338
Total noncurrent liabilities	24,245	73,857
Reserves under special laws
Reserve for financial products transaction liabilities	440	449
Total reserves under special laws	440	449
Total liabilities	413,344	584,706
Net assets
Shareholders' equity
Capital stock	36,000	36,000
Capital ｓurplus	33,473	33,016
Retained earnings	85,537	90,693
Treasury stock	(6,390)	(7,572)
Total shareholders' equity	148,619	152,137
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	2,026	1,439
Foreign currency translation adjustment	(10)	(251)
Remeasurements of defined benefit plans	2,454	1,986
Total accumulated other comprehensive income	4,469	3,175
Subscription rights to shares	327	443
Non-controlling interests	1,787	1,472
Total net assets	155,204	157,229
Total liabilities and net assets	568,548	741,935