September 5, 2018

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

Notice of Acquisition of Shares of Cyze Inc. (Transfer to Subsidiary)
TOKAI Holdings Corporation (hereinafter “TOKAI Holdings”) announces that Tokai Communications
Corporation (Headquarters: Shizuoka City, Shizuoka Prefecture; President & CEO: Yasuhiro Fukuda;
hereinafter “TOKAI COM”), a wholly owned subsidiary of TOKAI Holdings, has decided to acquire sharesof Cyze Inc. (Headquarters: Shibuya-ku, Tokyo; President & CEO: Tatsuyuki Nakamura; hereinafter “Cyze”)(hereinafter “Share Acquisition”) as stated below.

1. Purpose of Acquisition of Shares
Under the TLC (Total Life Concierege) vision, TOKAI Group has been offering comprehensive lineup ofvarious lifestyle services closely connected to people’s lives, including LP gas, city gas, information andcommunications, CATV, and Aqua (bottled water delivery). Business areas centering in Shizuoka Prefecture
and whole of Kanto have expanded nation-wide, and services are used by approximately 3,000,000
customers. Services such as energy and information and communications are also being offered toapproximately 5,000 corporate customers in Japan.
TOKAI COM carries out TOKAI Group’s information and communications business. With thecompany-owned fiber-optic network and data center, along with its technological skills and development
capabilities as a backbone, TOKAI COM offers multifaceted services in the field of information andcommunications to customers from individuals to corporates.
Cyze is an information service company which provides in-house developed survey systems mainly for
online research and engages in entrusted development of systems as its core business. Services provided
range widely from product development to consulting of research systems with Cyze’s made-to-order
response centering on highly expandable in-house developed systems serving as its strength.
Execution of Share Acquisition was decided under the judgement that, going forward, such acquisition will
strengthen digital marketing strategies of TOKAI Group’s customers through utilization of Cyze’s datacollection solution and will create synergies through mutual utilization of customer base, business knowhow
and resources, thus leading to medium-to-long term improvement of TOKAI Group’s corporate value.

TOKAI Holdings has been actively working on the medium-term management plan “Innovation Plan 2020
“JUMP”” since 2017. The management plan upholds aggressive advancement of M&A investment in anaggregate amount of 100 billion yen in addition to the growth of established businesses so as to accelerate
TOKAI Group’s growth for the four years until 2020.
The Share Acquisition is carried out as part of such M&A investment plan. TOKAI Holdings will continue toconduct active M&A and alliance investments with efforts toward expanding earnings base of TOKAIGroup’s core business which include gas, CATV, and information and communications.

2. Overview of Cyze Inc.
(1)

Company Name

(2)

Location(3)

Name and position ofrepresentative(4)

Business activities

(5)
(6)

CapitalEstablishment date
Major shareholders
and shareholdingratio(7)

Cyze Inc.
7th Floor FPG links SHIBUYA, 1-18-1 Dougenzaka, Shibuya-ku,
Tokyo
President & CEO Tatsuyuki Nakamura
Provision of in-house developed survey system and entrusted developmentof systems
10 million yen
December 1975

Tatsuyuki Nakamura
Others97.5%
2.5%(as of August 27, 2018)

CapitalNot applicablerelationship
Personal(8)Not applicable
relationship
BusinessNot applicable
relationship(9)Business results and financial condition of the relevant company of the latest three years
FYE11/15 (yen)FYE11/16 (yen)FYE11/17 (yen)Accounting period
Net Assets
84,000,000
128,000,000
157,000,000
Total Assets
113,000,000
170,000,000
167,000,000
Net Assets per Share
4,199
6,410
7,832
Net Sales
182,000,000
212,000,000
179,000,000
Operating Profit
22,000,000
69,000,000
36,000,000
Ordinary Profit
23,000,000
70,000,000
36,000,000
Net income
16,000,000
44,000,000
28,000,000
Net income per Share
781
2,210
1,422Dividend per Share－－－Relationship between
the listed company
and the relevant
company

3. Overview of Counterparty of Share Acquisition
(1)
(2)
(3)

Name
Address
Relationship between
listed company andrelevant individual

Tatsuyuki Nakamura, and others
Chofu City, Tokyo, and others
There is no significant capital, personal, and business relationships

4. Number of Shares to be Acquired and Number of Shares Held Before and After Transfer(1)

Number of shares
held before transfer(2)

Number of sharesacquired(3)

Number of shares
held after transfer

Zero share(Number of voting rights: zero)(Ownership ratio: 0%)
20,000 shares(Number of voting rights: 20,000)(Ratio to number of shares issued: 100%)
20,000 shares(Number of voting rights: 20,000)(Ownership ratio: 100%)

5. Schedule(1)(2)

Contract Date
Share subscription
execution dateAugust 27, 2018
September 13, 2018 (planned)

6. Future Outlook
TOKAI Holdings acknowledges that impact of this matter to the consolidated operating results for the fiscal
year ending in March 2019 is insignificant.

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