October 8, 2019

To whom it may concern
TOKAI Holdings Corporation
Katsuhiko Tokita, President & CEO(Code No. 3167 Tokyo Stock Exchange First Section)

Acquisition of Shares in Nissan Tri Star Construction, Inc.
(to Make It a Consolidated Subsidiary)
Our 100% subsidiary TOKAI CORPORATION (Headquarters: Shizuoka City, Shizuoka Prefecture;
President and Representative Director: Katsuo Oguri; hereinafter “TOKAI”) concluded a share transfer
agreement to acquire shares in Nissan Tri Star Construction, Inc. (Headquarters: Gero City, Gifu Prefecture;
President and Representative Director: Hidetaro Shima; hereinafter “Nissan Tri Star Construction”) andmade Nissan Tri Star Construction its consolidated subsidiary. Details are as follows.

1. Reasons for the share acquisition
The market size of the construction industry peaked at approximately 84 trillion yen in 1992 and shrank toapproximately 41 trillion yen in 2010. Recently, however, the industry has started to expand again due to therecovering demand of public works projects, the reconstruction from natural disasters, and the construction
boom in preparation for the Tokyo Olympics. While the construction industry also suffers concern forchronic labor shortage, this industry is an indispensable business that is not only responsible for thedevelopment and maintenance of local infrastructure but also as a guardian of the local community to ensure
local safety and security.
TOKAI primarily operates LPG and bottled water delivery businesses that serve about 800,000 customers
nationwide as its customer base, as well as building construction, facility construction, and real estate tradingbusinesses in Shizuoka, Aichi, and Kanagawa Prefectures. In particular, the building construction businessand the facility construction business focusing on water supply, drainage, and air conditioning operate
mainly in Shizuoka Prefecture serving both public and private customers. Based on the Group’s management
philosophy “To improve the lives of our customers, we will continue to grow and develop together with local
communities and the earth,” TOKAI is working to strengthen its customer base by expanding its businessarea, etc.
Nissan Tri Star Construction operates a region-based comprehensive construction business in Gifu Prefecture.
Drawing on human resources of many qualified employees, including civil engineering execution
management experts, and the trust the company has built up through its business development over the past
50 years since its foundation, Nissan Tri Star Construction has established stable business performance bydemonstrating its strength in public civil engineering works in particular.
In the future, TOKAI will promote the comprehensive development of the civil engineering, building
construction, and facility construction businesses not only in the Chukyo area but also in Shizuoka and theKanto area as a comprehensive construction business operator by absorbing the technological capabilities
and expertise of Nissan Tri Star Construction. TOKAI also aims to create synergy with the LPG business in
the Chukyo area into which TOKAI newly expanded in 2016. Nissan Tri Star Construction will use TOKAI’s
capabilities and expertise in marketing to attract more orders for private building construction projects inaddition to public civil engineering works.
As described above, both the companies aim to further expand their businesses by mutually sharing their
management resources and expertise.

2.

Overview of Nissan Tri Star Construction, Inc.
(1)
Company Name
Nissan Tri Star Construction, Inc.
(2)
Location429-1, Atotsu, Hagiwara-cho, Gero City, Gifu Prefecture
Name and position of(3)President & Representative Director Hidetaro Shimarepresentative(4)
Business activities
General construction industry, Real estate business(5)
Capital50 million yen (as of March 2019)(6)
Establishment dateJune 1970
Majorshareholders(7)
and shareholding ratio Katsuharu Imai100%
(as of July 17, 2019)
CapitalNot applicable
Relationship between relationshipthe listed company Personal(8)
Not applicableandtherelevant relationshipcompanyBusinessNot applicable
relationship(9)Business results and financial condition of the relevant company of the latest three years
Accounting period
FYE3/17 (yen)FYE3/18 (yen)FYE3/19 (yen)
Net Assets
1,576,000,000
1,640,000,000
1,767,000,000
Total Assets
2,738,000,000
2,736,000,000
3,332,000,000
Net Assets per Share
16,000,000
16,000,000
18,000,000
Net Sales
2,512,000,000
2,295,000,000
2,046,000,000
Operating Profit
138,000,000
85,000,000
197,000,000
Ordinary Profit
151,000,000
94,000,000
204,000,000
Net income
117,000,000
67,000,000
128,000,000
Net income per Share
1,000,000
1,000,000
1,000,000
Dividend per Share2020203.

Overview of Counterparty of Share Acquisition(1)
Name
Katsuharu Imai
(2)
Address
Hagiwara-cho, Gero City, Gifu Prefecture
Relationship between
There is no significant capital, personal, and business relationships to be(3)
listed company andnoted.
relevant individual

4.

Number of Shares to be Acquired and Number of Shares Held Before and After Transfer
Zero share
Number of shares held
(1)
(Number of voting rights: zero)
before transfer(Ownership ratio: 0%)
100 shares
Number of shares(2)(Number of voting rights: 100)
acquired(Ratio to number of shares issued: 100%)
100 shares
Number of shares held(3)(Number of voting rights: 100)after transfer(Ownership ratio: 100%)

5.

Schedule(1)
Contract Date
August 27, 2019(2)
Sharesubscription
September 5, 2019
execution date

6. Future Outlook
TOKAI Holdings acknowledges that impact of this matter to the consolidated financial results for the fiscal
year ending in March 2020 is insignificant.

Contact: Yoshihiro Taniguchi
Public Relations and Investor Relations Office
TEL: +81-(0)3-5404-2891
Email: overseas_IR@tokaigroup.co.jp