January 28, 2021
TOKAI 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, 2021
Achieved an Expanded Customer Base and Record-High Operating Results despite Impact
from the COVID-19 Pandemic

TOKAI Holdings Corporation (hereinafter, the “Company”) today announced its financial results forthe first nine months of the fiscal year ending March 31, 2021.

1. Customer count nearly doubled on a net basis year on year, as the Company
continued to expand its earnings 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, we are
actively applying strategies aimed at expanding our earnings base, including investing in M&A andforming business alliances. We also work to address an ongoing business objective by acquiring
additional continuing customers, securing multiple contracts based on the Total Life Concierge (TLC)
concept*1, and expanding service areas.
The TOKAI Group provides daily life-related infrastructure that is essential to the livelihood of its
customers who are required by the government and administration to continue operating theirbusinesses amid the COVID-19 pandemic. In the nine months ended December 31, 2020, the Group
ensured the safety of customers and employees and fulfilled its responsibility to continue providing
services by thoroughly implementing measures aimed at preventing the spread of COVID-19.
We actively conducted remote sales activities that do not involve direct human contact andinvolved new forms of Internet-based information transmission, business meetings, and telemarketing.
As a result, the Group recorded 3,063,000 continuing customers as of December 31, 2020. This
continuing customer count exceeded the count at the beginning of the year (3,003,000) by
59,804 (nearly twice the increase of 30,881 in the same period of the previous fiscal year).
With net increases of 24,416 (LP and city) gas customers, 34,395 CATV customers, and11,322 Hikari Collaboration customers, we further expanded our earnings base.

2. Despite impact from the COVID-19 pandemic, the Company achieved record-highfinancial results while generating performance that was extremely strong
compared to full-year profit projections

In the nine months ended December 31, 2020, the Company recorded sales of 139,792 million
yen (-1.2% year on year). While sales grew thanks to an increase in household LP gas sales volume,
expansion of recurring-revenue businesses in the Information and Communications business forcorporate clients, and higher customer counts in the CATV and Aqua (bottled drinking water delivery)businesses, they were weighed down by a decrease in (LP and city) gas selling prices linked with adrop in procurement prices (no impact on profits), as well as by a delay in sales activities caused by
the COVID-19 pandemic.
On the profit front, some businesses, such as the bridal events and banquet businesses, incurred
negative impact from the COVID-19 pandemic, but this impact was offset by various factors, including
an increase in profit from growth in the number of monthly fee paying customers caused by higher
customer counts in the LP gas and CATV businesses and greater profit from the Information andCommunications business for corporate clients. As a result, operating profit came to 9,901 million
yen, up 6.7% year on year, as the Company reported growth in profit for the third consecutive
year and record-highs on all profit lines for the second consecutive year.
Operating profit achieved 66% of its full-year target, higher than ratios achieved in the past(typically 58–60%).
(Millions of yen)
Q3 FY03/21 results Q3 FY03/20 results(April 1, 2020 to
December 31, 2020)

Sales(April 1, 2019 to
December 31, 2019)

YoY
Change% change

139,792

141,557-1,764-1.2%

Operating profit

9,901

9,278

+623

+6.7%

Recurring profit

9,929

9,478

+450

+4.8%

Net income

5,936

5,103

+832

+16.3%EPS (yen)

45.33

38.97

+6.36

+16.3%

3. Growth will continue during the fiscal year ending March 31, 2021 as sales risefor the fourth consecutive year and profits reach record highs for the third
consecutive year
For the fiscal year ending March 31, 2021, the Company projects continued growth, with sales
rising for the fourth consecutive year and profits reaching record highs for the third consecutive year.
This fiscal year is the last in our current medium-term management plan, and we intend to lay thefoundation for growth achieved under our next medium-term management plan.
The TOKAI Group believes that focusing on continuing customer count expansion will lead to topline growth, an improved earnings base, and large medium- to long-term growth for the entire Group.
Accordingly, it is pushing forward with initiatives aimed at achieving aggressive growth strategies.
The Company is conducting these initiatives while upholding the themes of M&A advancement,
ABCIR+S*2 implementation, and TLC enrichment as specific methods for achieving its targets.
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, 2021.

(Millions of yen)
FY03/21 forecast

FY03/20 results(April 1, 2020 toMarch 31, 2021)(April 1, 2019 toMarch 31, 2020)

YoY
Change% change

Sales

205,300

195,952+9,348+4.8%Operating profit

15,00014,224

+776

+5.5%

Recurring profit

14,87014,479

+391

+2.7%

Net income

8,460

8,241

+219

+2.7%

EPS (yen)
Customer count at end of
fiscal year

64.60

62.93

+1.67

+2.7%

3,105,000

3,003,000+102,000

+3.4%

(Yen)
Dividends

FY03/21 (forecast)Interim (end of Q2)

FY03/21

FY03/20
14.00

14.00

Year-end

14.00

14.00

Annual dividend total

28.00

28.00

For details, please see the attached materials, entitled “Financial Results for the Third Quarter of
the Fiscal Year Ending March 31, 2021”
Further, for the Company’s earnings announcement for the first nine months of the fiscal year
ending March 31, 2021, please see the following URL:
https://www.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 to
the Group’s strategies targeting technological innovation.

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

Financial Results for the Third Quarter of the
Fiscal Year Ending March 31, 2021
TOKAI Holdings Corporation(Code: 3167)
January 28, 2021

Expanding customer base at about twice the pace of theprevious year
◎ The number of continuous trading customers at the end of the 3Q was 3,063,000, an increase of
60,000 from the beginning (about twice the increase of 31,000 in the previous year).
◎ Main gas business, CATV business, Hikari collaboration progresses further expansion of profit baseGas(LP・City gas)
25

CATV

+24

(Thousand)

+19

20

737

780

15

+13

10

703
5

674

+34

35
760

+26

700
20

1,100-5

680
15

-10
1,050

660

-15

10
640

1,000
-20

1,055

1,088

FY2019_3Q

End of quarter

FY2020_3Q

Net increase※Round off less than 1,000※Net increase exclude customer additions from M & A.

330

325

320

328
324

315

950
-25
900-300600
FY2018_3Q△3

1,1500

5
620
0

335

5

+23

FY2018_3Q

FY2019_3Q

End of quarter

FY2020_3Q

Net increase

340

335

+5

1,200

345

+11

15
1,250
10

1,188

30
740
720
25

20
Hikaricollaboration

310
FY2018_3Q

FY2019_3Q

End of quarter

FY2020_3Q

Net increase

1Key points for net increase in main business◎ In the gas business, net increase due to acquisition of trade area increased by 26% year-on-year, andshare expanded in new areas◎ In the CATV business, net increase in communication services increased 1.9 times year-on-year.
◎ The information and telecommunications business has stopped its net decline in total for fixed (ISP)
and wireless (LIBMO)◎ Aqua business recovered the same net increase pace as the same period of the previous year after
2Q
Net increase（Thousand）

FY20203Q

FY20193Q

YoY

Key points

Gas（LP・City gas）

+24

+19

+6

(acquisition of trade area)

（+19）

（+15）

（+4）

CATV

+34

+26

+9

(Communication service)

（+25）

（+13）

（+12）

Information andcommunication

+2

-22

+24

（ISP）

（-2）

（-26）

（+24）

+1

Aqua

+4

-3

• Net increase of 4,000 due to acquisition of LPgas trade area
• The number of 11 bases that have expanded into
new areas with LP gas has increased by 8,000.
• Net increase in communications services
increased 1.9 times year-on-year• ISPs improved by 24,000 due to an increase in
new subscribers of 14,000 and a decrease incancellations of 10,000.
• Net decrease of 1.6 thousand cases in 1Q, net
increase of 1.3 thousand cases in 2Q, net
increase of 1.3 thousand cases in 3Q, recovering
the same pace as the same period of theprevious year

2

Profit increase for 3 consecutive terms and record high◎ Sales increased slightly due to an increase in the number of customers and expansion of theinformation and communications business for corporations, but a decline in sales prices linked to thepurchase price of gas and a delay in sales activities due to the Corona disaster.
◎ In terms of profits, although some businesses were affected by Corona, profits increased due to anincrease in the number of monthly charges due to an increase in the number of customers andprofits in the corporate information and communications business, etc., and profits increase for thethird consecutive year and reached a record high for the second consecutive year.
◎ Progress rate (66%) against the full-year operating profit plan also exceeds the past average level(Million of yen)

Q3 FY03/21
Results

Q3 FY03/20
Results（April 1, 2020 to
December 31, 2020）（April 1, 2019 to
December 31, 2019）

YoY
ChangePercent
Change139,792

141,557-1,764-1.2％

Operating profit

9,901

9,278

+623

+6.7％

Recurring profit

9,929

9,478

+450

+4.8％

Net income

5,936

5,103

+832

+16.3％EPS (Yen)

45.33

38.97

+6.36

+16.3％3

Sales

Continued growth trend by achieving higher sales and profits◎ Continued growth trend with sales increase for 4 consecutive terms and record high profit for 3
consecutive terms◎ In addition to the finalization of the medium-term management plan IP20 “JUMP”, we will focus on
expanding the customer base for medium- to long-term growth while laying the foundation for thegrowth of the next medium-term plan.
◎ Work on the themes of "further promotion of M & A", "practice of ABCIR + S", and "deepening of TLC"
(Million of yen)

YoY

FY03/21 Forecasts FY03/20 Results(April 1, 2020 toMarch 31, 2021)(April 1, 2019 toMarch 31, 2020)

ChangePercent Change

205,300

195,952+9,348+4.8％Operating profit

15,00014,224

+776

+5.5％

Recurring profit

14,87014,479

+391

+2.7％

Net income

8,460

8,241

+219

+2.7％

EPS (Yen)

64.60

62.93

+1.67

+2.7％

Customer
Number (Thousand)

3,105

3,003

+102

+3.4％4

Sales

Strive for continuous and stable dividends◎ Based on the Company's dividend policy, which strives for continuous and stable dividends, theannual dividend is planned to be ¥ 28 / share.
◎ Dividend payout ratio remains high

40

54.7%

52.9%

45

47.2%

46.7%

44.2%

43.4%

50.0%

44.5%

43.3%

28 yen28 yen

35

30

40.2%
35.1%

25

20

12 yen15

10

12 yen12 yen28 yen28 yen28 yenper shareper shareper shareper shareper share6

per share

12 yenper shareper shareper share

6

6

6

6

8

6

6

6

6

6

30.0%

14

14 yenper share

40.0%

14

14

14

11

20.0%

10.0%

5

11

14

14

14

14

0

0.0%

FY2011FY2012FY2013

Interim dividend

FY2014FY2015Year-end dividend* The red dashed line is the current dividend forecast

FY2016FY2017

Commemorative dividend

FY2018FY2019FY2020(Forecast)

Dividend payout ratio

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)

Q3 FY03/17
Results

Q3 FY03/18
Results

Q3 FY03/19
Results

Q3 FY03/20
Results

Q3 FY03/21
Results

127,432

133,336

137,943

141,557

139,792

Operating profit

8,193

6,579

7,038

9,278

9,901

Recurring profit

8,246

6,662

7,247

9,478

9,929

Net income

4,850

3,435

3,966

5,103

5,936

EPS (Yen)

42.71

26.66

30.29

38.97

45.33

Sales

7

(2) Sales by segment(Millions of yen)

Q3 FY03/17
Results

Q3 FY03/18
Results

Q3 FY03/19
Results

Q3 FY03/20
Results

Q3 FY03/21
Results

Energy51,29153,14554,67555,19153,437

Information andCommunications

36,212

37,76037,95938,83437,831

CATV

18,901

20,871

22,82923,43324,994

building equipment
real estate

12,926

13,491

13,846

14,91914,815

Aqua

4,391

4,652

5,279

5,603

5,778

Others

3,708

3,415

3,352

3,575

2,934

127,432

133,336

137,943

141,557

139,792

Total※From the current fiscal year, the name of the reporting segment has been changed from "gas and oil" to "energy" and from "building and real estate" to "building equipment realestate". The segment name change will not affect sales by segment.

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

Q3 FY03/17
Results

Q3 FY03/18
Results

Q3 FY03/19
Results

Q3 FY03/20
Results

Q3 FY03/21
Results

Energy

5,550

3,857

2,954

3,964

5,034

Information andCommunications

2,993

2,410

2,595

3,366

3,081

CATV

2,125

2,758

3,568

3,790

4,102

building equipment
real estate

619

681

915

1,242

1,094

Aqua

299

221

444

597

578

Others-3,396-3,350-3,442-3,682-3,988

8,193

6,579

7,038

9,278

9,901

Total

*Prior to elimination of indirect expenses

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

Q3 FY03/17
Results

Q3 FY03/18
Results

Q3 FY03/19
Results

Q3 FY03/20
Results

Q3 FY03/21
Results

Total assets

157,735

165,886

167,035

168,697

172,946

Total liabilities

111,007

106,661

107,404

102,972

102,104

Total net assets

46,72859,224

59,63165,72470,841

Balance ofinterest-bearing
debt

65,67857,511

58,481

52,61551,344

EBITDA

19,922

18,052

18,266

20,76921,768Equity ratio

29.1 %

35.0 %

35.0 %

38.2 %

40.1 %
10(5) Consolidated cash flows(Millions of yen)

Q3 FY03/17
Results

Q3 FY03/18
Results

Q3 FY03/19
Results

Q3 FY03/20
Results

Q3 FY03/21
Results

Operating cashflow

17,082

12,295

9,813

15,476

19,402

Investment
cash flow-6,929-9,655-9,615-9,683-14,672

Free cash flow

10,152

2,640

197

5,793

4,730

Financing cashflow

-11,261-2,081762-4,779-3,86311

(6) Group customer count(Thousands of customers)

Q3 FY03/17
Results

Q3 FY03/18
Results

Q3 FY03/19
Results

Q3 FY03/20
Results

Q3 FY03/21
Results

635

653

674

703

737

Previous ISP
model, etc.

538

478

430

396

375

Hikari Collaboration

288

319

328

324

335

LIBMO

－

21

39

45

52

Mobile

826

818

797

766

763

728

1,002

1,055

1,088

1,188

CATV

135

143

157

160

162

Aqua

234

229

220

214

209

Security

17

17

17

16

16

2,551

2,839

2,897

2,933

3,063
12

Information andCommunications

Gas (LP and city gas)

Subtotal

Total*The number of customers under a thousand are rounded to the nearest thousand. Information and Communications and
CATV both offer communications services, and so their 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.
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