May 24, 2019

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

Notice Regarding Transfer of the Gas Business of Nikaho-shi
TOKAI GAS CORPORATION (Headquarters: Yaizu City, Shizuoka Prefecture; Representative Director:
Shoji Uematsu; hereinafter, “TOKAI GAS”), a wholly-owned subsidiary of TOKAI Holdings Corporation,
will receive a transfer of the gas business operated by Nikaho-shi Akita Prefecture as detailed in theattachment.
TOKAI GAS, the founding company of the TOKAI Group, operates the city gas business in the Shida area
(Yaizu City, Fujieda City, and Shimada City) in Shizuoka Prefecture. In April this year, we took over the city
gas business in Shimonita-machi, Gunma Prefecture. As the first step in expanding the city gas business overa wide area to realize the Group's medium-term management plan, we began operations outside Shizuoka
Prefecture for the first time.
Based on the idea that “The city gas business is closely related to the daily lives of people living in its service
area, and the Company’s growth lies on the development of a trusting relationship with customers,” weconduct the following initiatives: 1) strengthening customer contact points through activities with themes
closely linked with people’s daily lives; 2) proactively promoting advanced energy systems by leveraging
high-level technological capabilities; 3) efforts to build trust through various local contribution activities; and4) developing the business into a “role model” business of the TOKAI Group’s TLC Vision.
In the Nikaho-shi area, a new service area, TOKAI GAS will make an effort to provide stable supply of gas
as a local energy company. In addition, the Company will aim to improve customer satisfaction and enhance
its service levels by offering the TOKAI Group’s array of lifestyle-related services, thus strengthening itsbusinesses.

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

May 24, 2019

To whom it may concern
TOKAI GAS CORPORATION

Notice Regarding Signing of an Agreement for the Transfer of the Gas Businessof Nikaho-shi
TOKAI GAS CORPORATION (hereinafter, “TOKAI GAS”) signed a “Provisional Agreement for theTransfer of the Gas Business of Nikaho-shi” on March 28, 2019. Following the adoption of the resolution on
the transfer of the gas business at the extraordinary meeting of the Nikaho-shi Council held on May 16, theagreement was formed. After going through various procedures based on the Gas Business Act, such asobtaining the approval of business transfer from Director-General of the Kanto Bureau of Economy, Tradeand Industry, we are slated to receive a transfer of the gas business with April 1, 2020 as the effective date ofbusiness transfer. In preparing for succeeding business, we will coordinate adequately with Nikaho-shi so as
not to cause any inconvenience to customers. After the transfer of business, TOKAI GAS will offer diverse
lifestyle support products and services under the TOKAI Group’s TLC (“Total Life Concierge”) concept as a
one-stop provider of services for all daily life needs of customers, and will aim to grow into a company
operating the city gas business on a nationwide scale.
1.

Details of the agreement
Assets to betransferred

Scheduled date ofbusiness transfer
2.

(1) Land (premises of gas decompression facilities in each region) (2)Buildings (buildings of gas supply facilities), (3) Structures, (4) Machinery andequipment, (5) Gas conduit pipes, (6) Gas meters, (7) Tools, furniture andfixtures, (8) A set of data, such as electronic account books used in this gas
business, and (9) Other assets used for this gas business
April 1, 2020

Future Schedule
Date
July to August
2019
April 2020

Details
Filing of an application for approval of business transfer with the Kanto
Bureau of Economy, Trade and Industry, which is the supervisory authorities
Transfer of business3.

Overview of business (data shown are the results for FY2016)
Established
RepresentativeAddress
Number ofemployees
Service area
Number ofcustomers

Nikaho-shi Gas and Water Bureau
October 1, 2005 (Municipal merger)
Mayor Yuji Ichikawa of Nikaho
Funabashi 4, Hirasawa, Nikaho, Akita
Prefecture
7 (Gas staff)(15 whole staffs including watersupply accounting)Nikaho-shi
City gas: 5,172 contracts

Gas sales volume

City gas: 854,000m3

Net sales of gas
Gas typeCity gas: 417 million yen
13A[Inquiries about this press release]

Corporate Planning Department,TOKAI GAS CORPORATIONTEL: 054-647-7151 HP: https://www.tokaigas.co.jp/

TOKAI GAS CORPORATION
December 12, 1966
Syoji Uematsu, Representative
Director
74-3 Shiotsu, Yaizu City, Shizuoka
Prefecture179

Yaizu City, Fujieda City, Shimada
City
City gas: 56,054 contracts(community gas: 1,296 contracts, LP
gas: 17,702 contracts)
City gas: 134,506,000m3(community gas: 146,000m3, LP gas:6,094t)
City gas: 11,520 million yen
13A