May 9, 2017
TOKAI Holdings Corporation
Katsuhiko Tokita, President & CEO(Code No. 3167 Tokyo Stock Exchange First Section)
To whom it may concern

Financial Results for the Fiscal Year Ended March 31, 2017
Significantly Higher Profits Led to Record Profits
TOKAI Holdings Corporation (hereinafter, the “Company”) today announced its financial results
for the fiscal year ended March 31, 2017 (April 1, 2016 to March 31, 2017).
(Millions of yen)
FY03/17 results

FY03/16 results(April 1, 2016 to(April 1, 2015 toMarch 31, 2017)

March 31, 2016)

Sales

178,631

Operating profit

Versus

ForecastYoY change

180,940

179,700-2,309-1,069

12,7508,245

12,750+4,504+0

Recurring profit

12,7758,150

12,360+4,625+415

Net income

7,337

3,458

6,500+3,878+837

EPS (Yen)

64.46

30.01

57.23

+34.45+7.23

forecast

1. Significantly Higher Profits Led to Record Profits
Consolidated results for the fiscal year ended March 31, 2017 were sales of 178.6 billion yen,operating profit of 12.8 billion yen, recurring profit of 12.8 billion yen, and net income of 7.3billion yen.
Operating profit increased by a sharp 4.5 billion yen (up 54.6%) compared to 8.2 billion yen
during the fiscal year ended March 31, 2016, and all profit indicators posted historic highs.
Active sales promotion activities conducted for Hikari Collaboration*—an area of focus during
FY03/17—during the previous fiscal year were successful, resulting in a 2.9 billion yen
improvement, and the Aqua (bottled water delivery) business also showed a 1.4 billion yen
improvement and achieved profitability for two consecutive half-year periods owing to factors
such as a shift in sales strategy.
All consolidated profit indicators attained the forecasts revised up in October 2016.

2．Information and Communications, Aqua, and CATV Segments Post Operating Profit Growth
Sales declined 9.2% in the Gas and Petroleum segment due to a 6.5 billion yen negative impactof sales price adjustment related to lower gas procurement prices. However, overall sales werelittle changed from the previous year due to sales growth in the Information and Communications,
CATV, and Aqua segments as a result of an increase in retail customers and promotion activities
for Hikari Collaboration as discussed above.
Profit growth resulting from the increase in retail customers was the main reason for the sharp
increase in profits.
3． Net Increase of Group Customers Continues
The number of customers in the mainstay Gas and Petroleum and CATV businesses increased
for the second consecutive fiscal year due to a rise in new customer registrations.
In the Aqua business, the number of customers showed a steady increase despite switching to asales structure with more emphasis on cost efficiency.
The number of customers fell in the Information and Communications business as a result ofpromoting the transition to Hikari Collaboration and traditional ISP services switching to Hikari
Collaboration.
Accordingly, the Group customer count at the end of the fiscal year ended March 31, 2017
increased by 6,000 from the end of the previous fiscal year to 2,564 thousand customers.
4．Further Progress with Balance Sheet Improvement
Since management integration in April 2011, the Company has focused on improving thefinancial position over six fiscal years, continuing to make progress in the fiscal year ended
March 31, 2017.
Interest-bearing debt was reduced to 54.1 billion yen, due in part to, in addition to repayment,conversion of convertible bonds issued in June 2015 into equity, and the Company’s equity ratio
improved to 34.5%. EBITDA also recovered to the 28 billion yen level thanks to substantial profit
growth.
5．Dividend Per Share Doubles on Two Consecutive Years of Dividend Increase
The fiscal year ended March 2017 was the final year of the Company’s second medium-term
management plan “Innovation Plan 2016 ‘Growing’” (IP16). All profit indicators posted historic
highs and attained plan targets.
As announced in the upward revision on October 31, 2016, the annual dividend for the fiscal
year ended March 31, 2017 shall be 28 yen per share, a twofold increase from 14 yen for the fiscal
year ended March 31, 2016, including a commemorative dividend of 6 yen to mark theachievement of the IP16 medium-term management plan.

(Yen)
FY03/17
End of Q2

FY03/16

11.00
17.00
(Ordinary dividend: 11.00)(Commemorative dividend: 6.00)

6.00

Annual dividend total

28.00

14.00

Total dividend payout

3,416 million

1,601 million

Consolidated payout ratio

43.4%

46.7%

Consolidated ROE

7.0%

3.8%Year-end

8.00

For details, please see the attached materials, entitled “Financial Results for the Fiscal Year
Ended March 31, 2017.”* ISPs that provide self-branded optical broadband service via fiber optic lines provided by NTT.

Contact: Yoshihiro Taniguchi
Public Relations and Investor Relations Office
TEL: +81-(0)54-273-4878
Email: overseas_IR@tokaigroup.co.jp

Financial Results for the Fiscal Year Ended
March 31, 2017
TOKAI Holdings Corporation(Code: 3167)
May 9, 2017

Record profits on sharp profit growth◎ Mostly attained earnings forecasts revised up in October 2016
◎ Steady progress with earnings improvement totaling 4.4 billion yen in focus areas ofHikari Collaboration and Aqua led to sharp profit growth. The Aqua business turned
profitable for the first time.
◎ Price revision due to fall in procurement prices of raw materials for gas lowered sales
by 6.5 billion yen from previous fiscal year
(Millions of yen)

YoY change

FY03/17
resultFY03/16
resultForecast

178,631180,940

12,750Of which, Hikari
Collaboration
Of which, Aqua

Versus forecast

Amount ofchange

Percentchange (%)

Amount ofchange

Percentchange (%)

179,700-2,309-1.3-1,069-0.6

8,245

12,750+4,504+54.6+0+0.0-67-3,007-442+2,940–+375–

298-1,119

301+1,417–-3-1.1

12,7758,150

12,360+4,625+56.7+415+3.4

Net income

7,337

3,458

6,500+3,878+112.1+837+12.9

EPS (Yen)(64.46)(30.01)(57.23)(+34.45)(+114.8)(+7.23)(+12.6)

Sales
Operating profit

Recurring profit* Operating profit of Hikari Collaboration and Aqua businesses are prior to elimination of indirect expenses.

1Results by segment (YoY change)◎ Sales were flat YoY, with higher revenue from paying customers offset by negative effect of gas price cut (-3.6%)◎ Information and Communications segment profit up by 1.9 billion yen on promotion of Hikari Collaboration toconsumers◎ Aqua business turned profitable for the full year, improving balance sheet by 1.4 billion yen by switching to astrategy that emphasizes cost efficiency◎ CATV business profit up by 800 million yen on increased customer count and operating expense cuts(Millions of yen)）

Sales
FY03/17 results

Operating profit
YoY change

FY03/17 results

YoY change

Gas and Petroleum

73,344-9.2%

9,161+170

Information andCommunications

49,508+11.9%

4,213+1,905

CATV

25,396+3.2%

2,752+777

Building and Real Estate

19,511

-7.0%

1,098

-168

Aqua

5,762

+5.0%

298+1,417

Others, adjustments

5,108+4.8%-4,774+403

178,631-1.3%

12,750+4,504Total

2* Prior to elimination of indirect expenses

Group customer count◎◎

Group customer count up by six thousand from previous year to 2.56 million customers
Net increase for two consecutive fiscal years in gas and CATV businesses due to a rise in new registrations,
expanding their customer base
◎ Solid increase in customers of Aqua business despite new emphasis on cost efficiency◎ Information and Communications business promote switch to Hikari Collaboration while previous ISP businessdeclines(Thousands of customers)

End-FY03/12

End-FY03/13

End-FY03/14

End-FY03/15

End-FY03/16

End-FY03/17

648

629

628

626

634

642

Previous ISP model,
etc.

758

816

854

859

633

528

Hikari Collaboration－－－4219

299

193

213

227

235236233

951

1,029

1,082

1,099

1,088

1,061

CATV

722

691

693

690

710

733

Aqua

97

102

122

130

133

135

Security

20

19

19

18

18

17

2,415

2,445

2,519

2,537

2,558

2,564

Information andCommunications

Gas (LP and city gas)

MobileSubtotal

Total* The number of customers below a thousand are rounded to the nearest thousand. Information and Communications and CATV both offer communications services, so
total figures avoid duplication.

3

Further progress with improvement offinancial indicators◎ Further progress in financial position improvement, which the Company has focusedon over six fiscal years since management integration◎ Interest-bearing debt reduced to 54.1 billion yen and equity ratio improved to 35%◎ EBITDA increases to 28.4 billion on steady progress with earnings performance(Millions of yen)

EndFY03/12

EndFY03/13

EndFY03/14

EndFY03/15

EndFY03/16

EndFY03/17

Total assets

183,735

177,642

173,620

165,702160,303

161,112

Total liabilities

156,553

143,631

135,291

122,234

118,332

104,665

Total net assets

27,18134,011

38,32943,467

41,97056,446

Interest-bearing
debt

105,659

93,66885,843

73,11471,410

54,137

EBITDA

28,826

26,382

24,96526,23324,98028,392Equity ratio

14.3 %

18.6 %

21.6 %

25.7 %

25.6 %

34.5 %

4Dividend increase over two consecutive
fiscal years, doubling in FY03/17◎ Posted record profits in FY03/17 and attained final-year targets of second medium-term
management plan IP16
◎ To pay annual dividend of 28 yen per share, including IP16 achievement commemorative dividendof 6 yen per share as announced in October 2016
◎ Two consecutive fiscal years of dividend increase and an annual dividend of 28 yen per share inFY03/17 versus 14 yen per share in FY03/16, a twofold increase3025

28 yen per share

Commemorative dividend
Year-end dividend

6interim dividend＋20

14 yen per share
15

10

12 yen per share 12 yen per share

66

12 per share

12 yen per share

6614 yen

1711811

566666

FY03/12

FY03/13

FY03/14

FY03/15

FY03/160

FY03/175

The 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.
Public Relations and Investor Relations Office
TOKAI Holdings Corporation
2-6-8 Tokiwa-cho, Aoi-ku, Shizuoka 420-0034, Japan
Phone: +81-(0)54 275-0007
Fax: +81-(0)54-275-1110
http://tokaiholdings.co.jp/e-mail： overseas_IR@tokaigroup.co.jp