Tokai Tokyo Financial : Consolidated Financial Summary (for the nine months ended December 31, 2016)

Member of the Financial Accounting Standards Foundation

Consolidated Financial Summary (for the nine months ended December 31, 2016)

January 27, 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

General Manager - Finance Planning Department Telephone: [phone]

Expected date for submission of quarterly report: February 14, 2017 Scheduled day of commencing dividend payment: －

Quarterly earnings supplementary explanatory documents: Available 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, 2016

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
   Nine months ended	million yen %	million yen %	million yen	million yen %	million yen %
   December 31, 2016	46,345 (12.7)	45,189 (13.3)	5,555	(51.5)	8,363 (38.3)	7,691 (27.8)
   December 31, 2015	53,087 (15.3)	52,098 (15.4)	11,446	(42.3)	13,555 (39.1)	10,649 (26.6)

   	Net income per share	Diluted net income per share
   Nine months ended	yen	yen
   December 31, 2016	29.32	29.30
   December 31, 2015	40.17	40.13

   (Note) Comprehensive income

3. Consolidated Financial Position

   Nine-month period ended December 31, 2016:

   Nine-month period ended December 31, 2015:

   6,417 million yen [(34.3%)]

   9,774 million yen [(38.0%)]

   	Total assets	Net assets	Equity ratio	Net assets per share
   As of December 31, 2016 March 31,2016	million yen 730,680 568,548	million yen 153,090 155,204	% 20.7 26.9	yen 576.97 580.16

   (Reference) Shareholders' equity December 31, 2016: 150,979 million yen March 31, 2016: 153,089 million yen

4. Dividends

   (Base date)	Dividend per share
   	End of first quart	er	End of second quarter	End of third quarter		End of year	Annual
   Fiscal year	－ －	yen	yen	－ －	yen	yen	yen
   Ended March 31, 2016			14.00			14.00	28.00
   Ending March 31, 2017			12.00
   Ending March 31, 2017 (Forecast)	－	－

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

   2) Dividend forecast for the fiscal year ending March 31, 2017 has not been determined.

5. Forecast of Consolidated Operating Results for Fiscal 2016 (from April 1, 2016 to March 31, 2017)

6. 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): None
   New : None
   Exclusion : None
   (2) Application of Special Accounting Treatments in Preparing Quarterly Consolidated Financial Statements: None
   (3) 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
   (4) Number of Shares Issued (Common Stock)
   1) Number of shares issued at the end of the term including treasury stock (shares)
   As of December 31, 2016:	280,582,115	As of March 31, 2016:	280,582,115
   2) Number of treasury stock at the end of the term (shares)
   As of December 31, 2016:	18,907,064	As of March 31, 2016:	16,706,568
   3) Average number of shares outstanding (for the nine months)
   Nine months ended December 31, 2016: 262,343,705		Nine months ended December 31, 2015: 265,104,509
   * Quarterly review procedure implementation progress status
   This quarterly earnings report is exempt from the quarterly review procedure that is required under the Financial Instruments and Exchanges
   Act. At the time of the disclosure of this Consolidated Financial Summary, we have not finished the review procedure process.
   * Note to proper use of forecast of operating results and other special remarks
   Dividends for the fiscal year ending March 31, 2017 have not been determined because it is difficult to forecast operating results,
   as described similarly in "3.Forecast of Consolidated Operating Results for Fiscal 2016.''

   Consolidated Financial Statements
   (1) Consolidated Balance Sheets
   (Unit: million yen)
   As of March 31, 2016	As of December 31, 2016
   Assets
   Current assets
   Cash and deposits	45,204	46,318
   Cash segregated as deposits	28,711	31,606
   Cash segregated as deposits for customers	27,905	30,700
   Cash segregated as deposits for others	806	905
   Trading products	259,234	310,393
   Trading securities and other	255,620	306,451
   Derivatives	3,613	3,941
   Margin transaction assets	41,375	40,208
   Loans on margin transactions	31,714	26,060
   Cash collateral pledged for securities borrowing on margin transactions	9,660	14,148
   Loans secured by securities	134,042	235,264
   Cash collateral pledged for securities borrowed	134,042	235,264
   Advances paid	76	5
   Short-term guarantee deposits	11,696	11,679
   Short-term loans receivable	115	136
   Accrued income	1,944	1,724
   Deferred tax assets	208	629
   Other	2,680	3,154
   Allowance for doubtful accounts	(31)	(26)
   Total current assets	525,258	681,094
   Noncurrent assets
   Property, plant and equipment	10,203	9,844
   Intangible assets	2,426	2,290
   Investments and other assets	30,660	37,451
   Investment securities	25,071	31,406
   Long-term guarantee deposits	2,089	2,366
   Net defined benefit asset	2,697	2,912
   Other	2,138	1,170
   Allowance for doubtful accounts	(1,335)	(405)
   Total noncurrent assets	43,290	49,585
   Total assets	568,548	730,680

   (Unit: million yen)
   As of March 31, 2016	As of December 31, 2016
   Liabilities
   Current liabilities
   Trading products	137,111	228,596
   Trading securities and other	129,790	222,401
   Derivatives	7,321	6,194
   Trade date accrual	15,261	47,021
   Margin transaction liabilities	5,708	9,816
   Borrowings on margin transactions	3,733	6,299
   Cash received for securities lending on margin transactions	1,975	3,517
   Loans payable secured by securities	68,538	84,136
   Cash received on debt credit transaction of securities	68,538	84,136
   Deposits received	18,852	34,610
   Guarantee deposits received	10,605	8,876
   Short-term loans payable	81,052	75,786
   Short-term bonds payable	9,800	11,300
   Current portion of bonds	35,855	30,623
   Income taxes payable	533	366
   Provision for bonuses	1,721	1,235
   Provision for directors' bonuses	41	36
   Other	3,575	3,615
   Total current liabilities	388,658	536,020
   Noncurrent liabilities
   Bonds payable	1,950	6,110
   Long-term loans payable	19,700	31,800
   Deferred tax liabilities	470	1,394
   Provision for directors' retirement benefits	83	127
   Net defined benefit liability	465	462
   Other	1,576	1,244
   Total noncurrent liabilities	24,245	41,139
   Reserves under special laws
   Reserve for financial products transaction liabilities	440	430
   Total reserves under special laws	440	430
   Total liabilities	413,344	577,589
   Net assets
   Shareholders' equity
   Capital stock	36,000	36,000
   Capital ｓurplus	33,473	32,998
   Retained earnings	85,537	86,393
   Treasury stock	(6,390)	(7,583)
   Total shareholders' equity	148,619	147,808
   Accumulated other comprehensive income
   Valuation difference on available-for-sale securities	2,026	1,532
   Foreign currency translation adjustment	(10)	(777)
   Remeasurements of defined benefit plans	2,454	2,417
   Total accumulated other comprehensive income	4,469	3,171
   Subscription rights to shares	327	419
   Non-controlling interests	1,787	1,691
   Total net assets	155,204	153,090
   Total liabilities and net assets	568,548	730,680