May 9, 2019
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, 2019 and Earnings
Forecast for the Fiscal Year Ending March 31, 2020
Earnings recovered to hit record highs; targets record high profits for the second year in a row toenter the phase of earnest profit growth in the fiscal year ending March 31, 2020TOKAI Holdings Corporation (hereinafter, the “Company”) today announced its financial results forthe fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019) and earnings forecast for thefiscal year ending March 31, 2020 (April 1, 2019 to March 31, 2020).

1． Expanded earnings base on a net increase in customer count of 26 thousand
since the beginning of the fiscal year
In May 2017, the Company announced its third medium-term management plan Innovation Plan
2020 “JUMP” and growth strategies to attain targets set out in the plan. This entails investing a total of
100 billion yen over the four years in M&A and aggressively pursuing an alliance strategy, in addition
to making progress with existing priorities such as increasing the number of continuing customers,
securing multiple contracts based on the “Total Life Concierge” (TLC) concept, and expanding service
areas. The plan looks to roughly double the customer count, sales, and operating profit in the fiscal
year ending March 31, 2021—the final year of the medium-term plan—versus the fiscal year ended
March 31, 2017.
In the fiscal year ended March 31, 2019, the Company conducted upfront spending andimplemented an aggressive sales program to increase customer count, which forms its earnings base,with a view to attaining its medium-term targets. As a result, the continuing customer countreached 2,902 thousand as of March 31, 2019, up 26 thousand from 2,876 thousand at thebeginning of the fiscal year.
The net increase in the customer count broken down by main services was as follows (excludes
the impact of M&A): LP Gas 21,787 (versus a net increase of 18,561 in the previous fiscal year); CATV
30,682 (versus a net increase of 25,715); and Aqua (bottled drinking water delivery) 10,224 (versus anet increase of 10,998). Overall, mainstay businesses drove the expansion of earnings base.

2． Earnings made a V-shaped recovery, with all profit categories reaching record
highs for the first time in two years
In the fiscal year ended March 31, 2019, sales rose 5.5 billion yen (+3.0%) year on year to arecord high of 191.6 billion yen on an increase in customer count and the impact of M&A conductedin the previous fiscal year.

In terms of profit, thanks to the success of aggressive measures aimed at expanding earningbase implemented since the fiscal year ended March 31, 2018, operating profit increased 2.1billion yen (+19.0%) year on year to 13.1 billion yen, making a V-shaped recovery. All profit
categories reached record highs for the first time in two years.
This was mainly due to an increase in the number of monthly fee-paying customers accompanied
by an overall rise in customer count, with the Gas, CATV, Information and Communications (HikariCollaboration, etc.), Aqua, and home renovation businesses contributing a total profit increase of 3.4
billion yen. Other factors included improved earnings (200 million yen) from the TOKAI-brand MVNO
service LIMBO following its launch in the previous year and sales activities, including curtailment ofcustomer acquisition costs and cancellation prevention costs (900 million yen), which led to operating
profit growth totaling 4.5 billion yen.
On the other hand, non-sales factors included a decrease in sales volume of household LP gas(600 million yen) due to higher temperatures compared with the previous fiscal year and a rise in LP
gas procurement costs (1.8 billion yen), having an overall effect equivalent to 2.4 billion yen.
(Millions of yen)
FY03/19 ResultsFY03/18 Results(April 1, 2018 toMarch 31, 2019)(April 1, 2017 toMarch 31, 2018)

Forecast

YoY

Versus
Forecast

Sales

191,600

186,069

195,600+5,530-4,000Operating profit

13,057

10,971

13,960+2,086-903

Recurring profit

13,259

11,191

13,880+2,068-621

Net income

7,772

6,620

7,920

+1,151-148

EPS (Yen)

59.36

51.19

60.48

+8.17

-1.12

3．Targets record high profits for the second year in a row to enter the phase ofearnest profit growth in the fiscal year ending March 31, 2020
In the fiscal year ending March 31, 2020, the Company intends to post record high profits for thesecond year in a row and enter the phase of earnest profit growth. It will work toward achieving
substantial growth planned for the fiscal year ending March 31, 2021, the final year of themedium-term plan.
The Company plans to expand its customer base through continued upfront spending, promote
M&A and expand service areas, and pioneer new overseas markets. It targets a sales increase of 9.2
billion yen (+4.8%) year on year to 200.8 billion yen, operating profit growth of 1.1 billion yen (+8.5%)
year on year to 14.2 billion yen, and a net increase of 100 thousand in customer count to three million
customers by March 31, 2020.
Further, the Company will work to cultivate a new customer base and develop new services
through utilizing technological innovations of ABCIR+S*1 designed to accelerate TLC strategies.
Under its policy of consistently providing stable dividends, the Company plans to pay an annual
dividend of 28 yen per share.

(Millions of yen)
FY03/20 Forecasts

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

YoY
ChangePercent 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 endof fiscal year (thousand)

62.85

59.36

+3.49

+5.9%

3,002

2,902+100+3.4%(Yen)
Dividends

FY03/20 (Forecast)

FY03/19

FY03/18

Interim (End of Q2)

14.00

14.00

14.00

Year-end

14.00

14.00

14.00

Annual dividend total

28.00

28.00

28.00

Consolidated payout ratio

44.6%47.2%

54.7%

For details, please see the attached materials, entitled “Financial Results for the Fiscal Year Ended
March 31, 2019 and Earnings Forecast for the Fiscal Year Ending March 31, 2020.”
Further, for the Company’s earnings announcement for the fiscal year ended March 31, 2019,
please see the following URL:
http://tokaiholdings.co.jp/english/ir/library/earnings.html*1 ABCIR+S refers to the Company group’s strategies toward technological innovation; the term is formed from the first
letters of AI, Big Data, Cloud, IoT, Robotics, and Smartphones.

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 Fiscal Year Ended March 31, 2019and Earnings Forecast for the Fiscal Year Ending March 31, 2020TOKAI Holdings Corporation(Code: 3167)
May 9, 2019

Customer count increased by 26,000 net
since the beginning of the fiscal year
◎ The continuing customer count reached 2,902 thousand as of March 31, 2019, up 26 thousand from2,876 thousand at the beginning of the fiscal year.
◎ The mainstay businesses such as LP gas, CATV and Aqua(bottled drinking water delivery) drove theexpansion of earnings base.

+31（Net customer increase：thousand）+22+24+10+26+19+11+8+2LP Gas

CATVFY2016※Excluding customer increase by M & AFY2017

Aqua
FY20181

Earnings made a V-shaped recovery,
with all profit categories reaching record highs◎ Net sales reached a record high due to an increase in customer count and the impact of M & A
conducted in the previous fiscal year.
◎ Operating profit also increased by double digits due to an increase in monthly fee-paying as a result ofan increase in customer count and curbing on upfront spending such as customer acquisition costs, etc.
◎ Excluding the impact of high temperatures and a rise in LP gas procurement costs, operating activities
made steady progress against forecasts.
(Sales and profits: Millions of yen; EPS: Yen)

FY03/18
Results

FY03/17
Results

YoY

InitialForecasts

Versus forecast
Percent
ChangeChangePercent
ChangeChange191,600 186,069 195,600 +5,530+3.0-4,000-2.0

Operating profit

13,057 10,971 13,960 +2,086+19.0-903-6.5

Recurring profit

13,259 11,191 13,880 +2,068

+18.5

-621

-4.5

Net income

7,772

6,620

7,920 +1,151

+17.4

-148

-1.9

EPS (Yen)

59.36

51.19

60.48

+16.0

-1.12

-1.9

Sales+8.17

2

Points of double-digit increase in operating profit◎ As a result of the increase in customer count, the number of monthly fee-paying increased, resulting
in an increase of ¥ 3.4 billion. LIBMO also improved ¥ 200 million and increased ¥ 4.5 billion due tothe result of sales activities.
◎ On the other hand, non-sales factors included a decrease in sales volume of household LP gas due
to higher temperatures compared with the previous fiscal year and a rise in LP gas procurement
costs, having an overall effect equivalent to 2.4 billion yen.
Result of sales activities

Non-sales factors

Profit factor（bn yen）
Upfront cost factor（bn yen）

+0.9

Communication,MVNO

Customeracquisition andmaintenancecosts

Factors other than sales activities （bn yen）

2.88mn11.0GasHigh temperatureeffects

Gas-1.8

Customers

Purchase costeffect13.1-0.6bnGas

2.90mn-1.8bn+0.8 bn+1.4 bn

Hikaricollaboration
Corporate
communication+0.2 bnAqua+0.5 bn+0.2 bn

Renovation

FY2017
Result+0.9 bn

Customer number
increase

CATV146

LIBMO +0.2 bn+3.4
Customers

-0.6

+0.2

Factors such as customer acquisition cost （bn yen）

+0.3 bn

FY2018Result3

Targets record high profits for the second year in arow to enter the phase of earnest profit growth◎ Record high profit will be recorded for the second year in a row following fiscal 2018, and earnest
profit growth phase will start, and we will ensure the substantial growth in fiscal 2020, the final yearof the medium-term plan.
◎ Continuing to expand the customer base, promote M & A and expand the service areas, and pioneer
new overseas markets.

(Millions of yen)

FY2019Forecast

YoY

FY2018Results

Percent
ChangeChangeSales

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％

3,002thousand

2,902thousand+100thousand+3.4％
4FY ended numberof customers

Policy of consistently providing stable dividends◎ Under our policy of consistently providing stable dividends, planning to pay an annual dividend of 28
yen per share.

28 yenper share30

28 yenper share

28 yenper share

1414

14

14

1414

FY2017FY2018FY2019(Forecast)

625

20

15

28 yenper share

12 yen12 yen12 yen12 yen14 yenper share
8per shareper shareper shareper share

66661011

11566666

FY2011FY2012FY2013

FY2014FY20150Interim dividend

Year-end dividend

FY2016

Commemorative dividend

5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)

FY2014FY2015FY2016FY2017FY2018

187,511

180,940

178,631

186,069

191,600

Operating profit

9,003

8,245

12,75010,971

13,057

Recurring profit

8,549

8,150

12,775

11,191

13,259Net income

3,934

3,458

7,337

6,620

7,772

EPS (Yen)

34.16

30.01

64.46

51.19

59.36

Sales7

(2) Sales by segment(Millions of yen)

FY2014FY2015FY2016FY2017FY2018Gas and Petroleum

93,06780,74573,34476,073

77,977

Information andCommunications

40,11844,24649,50850,894

51,234

CATV

24,35924,60825,39628,38630,511

Building and Real
Estate20,01920,975

19,511

19,807

20,090

Aqua

4,959

5,487

5,762

6,200

7,004

Others

4,987

4,875

5,108

4,706

4,781

187,509180,936

178,631

186,069

191,600

Total

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

FY2014FY2015FY2016FY2017FY2018Gas and Petroleum

7,679

8,991

9,161

7,364

6,815

Information andCommunications

4,956

2,308

4,213

3,174

3,827

CATV

1,669

1,975

2,752

3,554

4,953

Building and Real Estate

1,029

1,266

1,098

1,330

1,615

Aqua

-1,313-1,119

298

246

762

Others, adjustments-5,016-5,175-4,775-4,699-4,916

9,003

8,245

12,75010,971

13,057

Total* Prior to elimination of indirect expenses

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

FY2014FY2015FY2016FY2017FY2018

Total assets

165,702160,303

161,112

165,993

167,606

Total liabilities

122,234

118,332

104,665

104,543

103,711

Total net assets

43,467

41,97056,44661,45063,894

Balance of interestbearing debt

73,114

71,41054,13750,98050,604

EBITDA

26,23324,98028,392

26,31828,148Equity ratio

25.7 %

25.6 %

34.5 %

36.3 %

37.4 %※※ Effective from the beginning of the fiscal year under review, the Company has applied "Partial Changes in Accounting Standard for Tax Effect Accounting" (ASBJ Statement
No. 28, February 16, 2018), and the consolidated financial indicators for the previous fiscal year have been adjusted retrospectively to reflect these accounting standards.

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

FY2014FY2015FY2016FY2017FY2018Operating cash flow

27,265

21,395

26,692

20,90921,605Investment cash flow

-8,851-11,015-10,985-11,488-12,443

Free cash flow

18,414

10,37915,706

9,421

9,161

Financing cash flow

-18,764-9,150-16,643-9,527-8,147

11

(6) Group customer count
FY2014FY2015FY2016(Thousands of customers)

FY2017

FY03/18626634

642661

684

Previous ISP model,etc.

859633527465419Hikari Collaboration

4219

299

323

327

LIBMO－－

2

29

41

Mobile

235

236

233

227

217

1,099

1,088

1,061

1,044

1,004

CATV

690

710

733

1,032

1,063

Aqua

130

133

135

146

156

Security

18

18

17

17

17

2,537

2,558

2,564

2,876

2,902
12

Information andCommunications

Gas (LP and city gas)

Subtotal

Total* Customer numbers under a thousand are rounded to the nearest thousand.
Information and Communications and CATV both offer communications services, and duplicated numbers are excluded from total figures.

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
11F Hamarikyu Intercity, 1-9-1 Kaigan Minato-ku, Tokyo 105-0022, Japan
Phone: +81-(0)3-5404-2891
FAX: +81-(0)3-5404-2786
http://tokaiholdings.co.jp/english/
e-mail: overseas_IR@tokaigroup.co.jp