January 30, 2020TOKAI Holdings Corporation
Katsuhiko Tokita, President & CEO(Securities Code: 3167, Tokyo Stock Exchange First Section)

Financial Results for the First Nine Months of the Fiscal Year Ending
March 31, 2020
On Track toward Recording Record-High Annual Profits for the Second Consecutive YearTOKAI Holdings Corporation (hereinafter, “the Company”) today announced its financial results for thefirst nine months of the fiscal year ending March 31, 2020 (April 1, 2019 to December 31, 2019).

1. Core businesses steadily contributed to an expanded customer base
The Company is currently implementing its third medium-term management plan, Innovation Plan 2020
“JUMP,” which extends through the fiscal year ending March 31, 2021. Under this plan, the Company
is actively applying strategies aimed at expanding its earnings base, including investing a total of 100
billion yen in M&A over the course of four years and forming business alliances. The Company also
works to address an ongoing business objective by acquiring additional continuing customers, securingmultiple contracts based on the Total Life Concierge (TLC) concept*1, and expanding service areas.
In the nine months ended December 31, 2019, the Company aimed to attain its medium-term targets
by implementing an aggressive sales program that targets an increase in the customer count that
constitutes the Company’s earnings base. As a result, the continuing customer count reached 2,933
thousand as of December 31, 2019, up 31 thousand from 2,902 thousand at the beginning of thefiscal year. With net increases of 18,886 (LP and city) gas customers, 25,869 CATV customers,and 3,815 Aqua customers (bottled drinking water delivery), the customer base has steadily
expanded.

2. Q3 sales and profits hit record highs
In the nine months ended December 31, 2019, sales increased by 3.6 billion yen (+2.6% year onyear) to 141.6 billion yen, a record high for the second consecutive year. Sales growth wasunderpinned by an increase in customer count and higher sales in the Information and Communications
business for corporate clients.
On the profit front, operating profit rose sharply to 9.3 billion yen, increasing 2.2 billion yen, or
31.8%, compared to the same period of the previous fiscal year, and each profit line reached arecord high for the first time in three fiscal years dating back to the nine months ended
December 31, 2016. This reflected an increase in the number of monthly fee-paying customers that
accompanied a higher customer count, as well as profit growth in the Information and Communications
business for corporate clients.

(Millions of yen)
Q3 FY03/20
Results

Q3 FY03/19
Results(April 1, 2019 toDecember 31, 2019)(April 1, 2018 to
December 31, 2018)

Sales

YoY
Percent Change

Change141,557

137,943+3,614+2.6%

Operating profit

9,278

7,038+2,240+31.8%

Recurring profit

9,478

7,247+2,231+30.8%

Net income

5,103

3,966

+1,136+28.6%EPS (Yen)

38.97

30.29+8.67+28.6%

3. Targets record high profits for the second year in a row in the fiscal year ending
March 31, 2020, and plans to enter a phase of substantial profit growth
In the fiscal year ending March 31, 2020, the Company is striving to post record high profits for thesecond consecutive year and enter a phase of substantial profit growth. It will work toward achieving
the substantial growth it forecast for the fiscal year ending March 31, 2021, the final year of its mediumterm management plan.
In addition to expanding its customer base through continued upfront spending, the Company plans topromote M&A, expand service areas, and pioneer new overseas markets. It aims to increase sales by
9.2 billion yen to 200.8 billion yen (+4.8% year on year), boost operating profit by 1.1 billion yen to 14.2
billion yen (+8.5% year on year), and secure a net customer count increase of 100 thousand, raising
the total to three million customers by March 31, 2020.
Further, the Company will work to cultivate a new customer base and develop new services by applying
the technological innovations in ABCIR+S*2, which are geared toward accelerating TLC strategies.
Under its policy of consistently providing stable dividends, the Company plans to pay an annual
dividend of 28 yen per share.
The Company has made no revisions to either its full-year consolidated earnings forecast or its dividend
forecast for the fiscal year ending March 31, 2020.

(Millions of yen)
FY03/20 Forecast

FY03/19 Results(April 1, 2019 toMarch 31, 2020)(April 1, 2018 toMarch 31, 2019)

YoYChange

Percent Change

Sales

200,800

191,600+9,200+4.8%

Operating profit

14,17013,057+1,113+8.5%

Recurring profit

14,04013,259+781+5.9%

Net income

8,230

7,772+458+5.9%

EPS (Yen)
Customer count at end of
fiscal year (thousand)

62.85

59.36

+3.49

+5.9%

3,002

2,902

+100+3.4%

(Yen)
Dividends

FY03/20 (Forecast)Interim (End of Q2)

FY03/20

FY03/19
14.00

14.00

Year-end

14.00

14.00

Annual dividend total

28.00

28.00

—

47.2%

Consolidated payout ratio

For details, please see the attached materials, entitled “Financial Results for the First Nine Months ofthe Fiscal Year Ending March 31, 2020.”
Further, for the Company’s earnings announcement for the first nine months of the fiscal year ending
March 31, 2020, please see the following URL:
https://tokaiholdings.co.jp/english/ir/library/earnings.html*1 Vision of becoming a TLC: The Group seeks to support the comfortable living of its customers in a comprehensive
and detail-oriented way and enhance customer satisfaction through its wide range of services.
*2 ABCIR+S: An acronym formed by the first letters of AI, big data, cloud, IoT, robotics, and smartphones. It refers tothe Group’s strategies targeting technological innovation.

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

Financial Results for the Third Quarter of theFiscal Year Ending March 31, 2020TOKAI Holdings Corporation(Code: 3167)
January 30, 2020

Main business steadily expands customer base
◎ The number of customers with ongoing transactions at the end of the current quarter was 2,933
thousand, an increase of 31,000 from 2,902 thousand at the beginning of the fiscal year
◎ Mainstay LP gas, CATV, and Aqua businesses steadily expand customer base(Thousand)
22LP gas

700+1920

15Aqua+23

1,150
10+81,088

1,1000CATV+23

24680

180+11+45

18647
1622660

160

160

20
640

+13

14+18-5
1,050
150

18620
12170

+11-1016600

1,000-15

10620

8

14580

-20
950

1,002599
12560

6

FY2017_3Q

FY2018_3Q

End of quarter

FY2019_3Q(Current)

Net increase

143130-2510540

4140157

1,055900-30
FY2017_3Q

FY2018_3Q

End of quarter※Round off less than 1,000※Net increase exclude customer additions from M & A. (From April to December)

FY2019_3Q(Current)

Net increase120
FY2017_3Q

FY2018_3Q

End of quarter

FY2019_3Q(Current)

Net increase

1

Sales and profit items are record highs◎ Sales increased by 3.6 billion yen due to the increase in the number of customers and the strong
performance of the corporate information and communications business.
◎ Operating profit also increased sharply by ¥ 2.2 billion (31.8% increase) mainly due to an increase inmonthly charges due to an increase in the number of customers, and an increase in profit from thecorporate information communication business.
(Million of yen)

Q3 FY03/20
Results

Q3 FY03/20
Results（April 1, 2019 toDecember 31, 2019）（April 1, 2018 toDecember 31, 2018）

YoY
Percent
ChangeChange141,557

137,943+3,614+2.6％

Operating profit

9,278

7,038+2,240+31.8％

Recurring profit

9,478

7,247+2,231+30.8％

Net income

5,103

3,966+1,136+28.6％EPS (Yen)

38.97

30.29+8.67+28.6％

Sales2

Two consecutive fiscal years of high profit renewal,
for further growth◎ It plans to renew its highest profit for the second consecutive year following fiscal 2018, enter into afull-fledged profit growth phase, and ensure the large growth of fiscal 2020, the final year of themedium-term plan.
◎ While continuing to expand the customer base, we will also promote M & A, expand the sales area,and advance to new overseas bases.

(Million of yen)

YoY

FY03/20 Forecasts FY03/19 Results(April 1, 2019 toMarch 31, 2020)(April 1, 2018 toMarch 31, 2019)

ChangePercent Change

200,800

191,600+9,200+4.8%

Operating profit

14,17013,057+1,113+8.5%

Recurring profit

14,04013,259+781+5.9%

Net income

8,230

7,772+458+5.9%

EPS (Yen)

62.85

59.36+3.49+5.9%

Customer
Number (Thousand)

3,002

2,902+100+3.4%3Sales

Policy of consistently providing stable dividends◎ Based on the Company's dividend policy, which strives for continuous and stable dividends, theannual dividend is planned to be ¥ 28 / share.
◎ No change was made to the dividend forecasts (announced May 9, 2019).
28 yen28 yen28 yen28 yenper shareper shareper shareper share30

62520151012 yen

12 yen12 yen12 yenper shareper shareper shareper share

666614 yen
per share

141414141414

FY2017FY2018FY2019(Forecast)

11811566666

FY2011FY2012FY2013

FY2014FY20150Interim dividend

Year-end dividend

FY2016

Commemorative dividend

4Appendix(1) Consolidated results(2) Sales by segment(3) Operating profit by segment(4) Consolidated financial indicators(5) Consolidated cash flows(6) Group customer count(1) Consolidated results(Millions of yen)

Q3 FY03/15
Results

Q3 FY03/16
Results

Q3 FY03/17
Results

Q3 FY03/18
Results

Q3 FY03/19
Results

Q3 FY03/20
Results

135,981130,103

127,432

133,336

137,943

141,557

Operating profit

4,866

4,006

8,193

6,579

7,038

9,278

Recurring profit

4,517

3,921

8,246

6,662

7,247

9,478

Net income

1,819

1,395

4,850

3,435

3,966

5,103

EPS (Yen)

15.81

12.05

42.71

26.66

30.29

38.97

Sales7

(2) Sales by segment(Millions of yen)

Q3 FY03/15
Results

Q3 FY03/16
Results

Q3 FY03/17
Results

Q3 FY03/18
Results

Q3 FY03/19
Results

Q3 FY03/20
Results

Gas andPetroleum

67,10658,34851,29153,14554,67555,191

Information andCommunications

30,02031,98836,212

37,76037,95938,834

CATV

18,207

18,345

18,901

20,871

22,82923,433

Building and Real
Estate13,311

13,783

12,926

13,491

13,846

14,919

Aqua

3,707

4,130

4,391

4,652

5,279

5,603

Others

3,626

3,507

3,708

3,415

3,352

3,575

135,981130,103

127,432

133,336

137,943

141,557

Total

8(3) Operating profit by segment(Millions of yen)

Q3 FY03/15
Results

Q3 FY03/16
Results

Q3 FY03/17
Results

Q3 FY03/18
Results

Q3 FY03/19
Results

Q3 FY03/20
Results

Gas andPetroleum

4,376

5,232

5,550

3,857

2,954

3,964

Information andCommunications

3,716

1,472

2,993

2,410

2,595

3,366

CATV

1,309

1,453

2,125

2,758

3,568

3,790

349

523

619

681

915

1,242

Aqua

- 1,166

- 933

299

221

444

597

Others,adjustments- 3,718- 3,741- 3,396- 3,350- 3,442- 3,682

Total

4,8664,006

8,193

6,579

7,038

9,278

Building and Real
Estate*Prior to elimination of indirect expenses

9(4) Consolidated financial indicators(Millions of yen)

Q3 FY03/15
Results

Q3 FY03/16
Results

Q3 FY03/17
Results

Q3 FY03/18
Results

Q3 FY03/19
Results

Q3 FY03/20
Results

Total assets

168,034

164,500

157,735

165,886

167,035

168,697

Total liabilities

128,808

122,228

111,007

106,661

107,404

102,972

Total net assets

39,22542,272

46,72859,224

59,63165,724

Balance ofinterest-bearing
debt

82,74379,53965,67857,511

58,481

52,615

EBITDA

17,817

16,56519,922

18,052

18,266

20,769Equity ratio

22.8 %

25.1 %

29.1 %

35.0 %

35.0 %

38.2 %

10(5) Consolidated cash flows(Millions of yen)

Q3 FY03/15
Results

Q3 FY03/16
Results

Q3 FY03/17
Results

Q3 FY03/18
Results

Q3 FY03/19
Results

Q3 FY03/20
Results

Operating cashflow

15,111

8,505

17,082

12,295

9,813

15,476

Investment
cash flow- 6,909- 8,750- 6,929- 9,655-9,615-9,683

Free cash flow

8,202

- 244

10,1522,640

197

5,793Financing cashflow

- 7,983- 47-11,261- 2,081762-4,779

11

(6) Group customer count(Thousands of customers)

Q3 FY03/15 Q3 FY03/16 Q3 FY03/17 Q3 FY03/18 Q3 FY03/19 Q3 FY03/20
Results
Results
Results
Results
Results
Results
624

629

635

653

674

703

Previous ISP
model, etc.

866

686

538

478

430

396

Hikari Collaboration

－173

288

319

328

324

LIBMO

－－－

21

39

45

Mobile

234

235

234

229

220

214

1,099

1,094

1,060

1,047

1,017

979

CATV

689

704

728

1,002

1,055

1,088Aqua

133

134

135

143

157

160

Security

1818

17

17

17

16

2,540

2,553

2,551

2,839

2,897

2,933

Information andCommunications

Gas (LP and city gas)

SubtotalTotal*The number of customers under a thousand are rounded to the nearest thousand. Information and Communications andCATV both offer communications services, and so their numbers are excluded from total figures.

12The performance forecasts and forward-looking statements in these materials are based on
information currently available to the Company, and include potential risks and uncertainties.
Please be aware that due to changes in a variety of factors, actual results may differ
materially from the projections and other forward-looking statements in these materials.

Please contact us with any questions regarding these materials.
Investor Relations Office
TOKAI Holdings Corporation
Hamarikyu Inter City 11th floor, 1-9-1, Kaigan, Minato-ku, Tokyo 105-0022, Japan
Phone: +81-(0)3 5404-2891
Fax: +81-(0)3-5404-2786
https://www.tokaiholdings.co.jp/english/
e-mail： overseas_IR@tokaigroup.co.jp