October 31, 2019
TOKAI Holdings Corporation
Katsuhiko Tokita, President & CEO(Securities Code: 3167, Tokyo Stock Exchange First Section)

Financial Results for the First Six Months of the Fiscal Year Ending
March 31, 2020
On Track for Record Annual Profits for the Second Year in a Row

TOKAI Holdings Corporation (hereinafter, “the Company”) today announced its financial results forthe first six months of the fiscal year ending March 31, 2020 (April 1, 2019 to September 30, 2019).

1. Core businesses steadily expanded customer base
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 actively investing atotal of 100 billion yen over the course of four years in M&A and forming business alliances, 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*1, 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 first six months of the fiscal year ending March 31, 2020, the Company implemented anaggressive sales program to increase customer count, which forms its earnings base, with a view toattaining its medium-term targets. As a result, the continuing customer count reached 2,918
thousand as of September 30, 2019, up 16 thousand from 2,902 thousand at the beginning of thefiscal year. With a net increase of 11,381 gas customers (LP gas and city gas), 13,911 CATV
customers, and 2,843 Aqua customers (bottled drinking water delivery), the customer base has
steadily expanded.

2. 1H sales and profits hit record highs
In the first six months of the fiscal year ending March 31, 2020, sales increased by 4.2 billion
yen (+4.7% year on year) to 93.0 billion yen, a record high for the second fiscal year in a row.
Sales growth was underpinned by an increase in customer count and higher sales in the informationand communications business for corporate clients.
On the profit front, operating profit rose sharply to 5.5 billion yen, 1.6 times higher than 3.5
billion yen in the same period of the previous fiscal year, and each profit item reached a record
high for the first time in three fiscal years since the first half of the fiscal year ended March 31,
2017. This reflected an increase in the number of monthly fee-paying customers associated withhigher customer count, as well as profit growth in the information and communications business forcorporate clients.
Operating profit easily surpassed the 1H forecast of 4.4 billion yen by 1.1 billion yen (24.7%
above target), making steady progress toward posting record annual profits for two consecutive fiscalyears.
(Millions of yen)
1H FY03/20
Results

1H FY03/19
Results

1H FY03/20
Forecast(April 1, 2019 to
September 30, 2019)(April 1, 2018 toSeptember 30, 2018)(April 1, 2019 to
September 30, 2019)

Sales

93,01588,84092,500+4,175+515

Operating profit

5,500

3,475

4,410

+2,025+1,090

Recurring profit

5,608

3,580

4,360+2,027+1,248

Net income

3,492

1,736

2,360+1,755+1,132

EPS (Yen)

26.67

13.26

18.02+13.41+8.65

Vs. forecast

YoY3. 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 intends to post record high profits for thesecond fiscal year in a row and enter a phase of substantial 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.
In addition to expanding its customer base through continued upfront spending, the Companyplans to promote M&A, 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 innovation of ABCIR+S*2 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.
The Company has made no revisions to its full-year consolidated earnings forecast nor 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)

YoY
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

Interim (End of Q2)

14.00

14.00

Year-end

14.00

14.00

Annual dividend total

28.00

28.00

Consolidated payout ratio

44.6%

47.2%

For details, please see the attached materials, entitled “Financial Results for the First Six Months ofthe Fiscal Year Ending March 31, 2020.”
Further, for the Company’s earnings announcement for the first six months of the fiscal year endingMarch 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 comfortable living of customers in a comprehensive anddetail-oriented way through various services it offers, with an aim of enhancing customer satisfaction.
*2 ABCIR+S: An acronym formed by the first letters of AI, big data, cloud, IoT, robotics, and smartphones. It refers toTOKAI Holdings Group’s strategies toward 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 Second Quarter of theFiscal Year Ending March 31, 2020TOKAI Holdings Corporation(Code: 3167)
October 31, 2019

Main business steadily expands customer base
◎ The number of ongoing trading customers at the end of the second quarter was2,918 thousand, an increase of 16,000 from 2,902 thousand at the beginning of theperiod◎ Mainstay LP gas business, CATV business and Aqua business steadily expandcustomerbaseincrease :Thousand)( Net customer+14+11+14+11+9+9+6+6LP gas

CATV
FY2017_2Q※ Excluding customer growth from M & A

FY2018_2Q+3Aqua
FY2019_2Q

1

Net sales and profit items updated to record highs◎ In addition to the increase in the number of customers, the strong corporate
information communication business contributed to an increase of ¥ 4.2 billion.
◎ Operating profit also increased sharply by ¥ 2 billion (58.3% increase) mainly due toan increase in monthly charges due to an increase in the number of customers, andan increase in profit from the corporate information communication business.
◎ Each profit item significantly increased by 2 digits compared to the earnings forecast(Million of yen)

Q2 FY03/20 Q2 FY03/19
Results
Results

Performance forecast
ratio

YoY
Forecast
ChangePercent
ChangeChangePercent
ChangeSales

93,01588,84092,500+4,175+4.7+515+0.6

Operatingprofit

5,500

3,475

4,410

+2,025+58.3+1,090+24.7

Recurringprofit

5,608

3,580

4,360

+2,027+56.6+1,248+28.6

Net
income

3,492

1,736

2,360+1,755+101.1+1,132+48.0

EPS (Yen)

26.67

13.26

18.02+13.41+101.1+8.65+48.02

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 a full-fledged profit growth phase, and ensure the large growth of fiscal 2020,
the final year of the medium-term plan.
◎ While continuing to expand the customer base, we will also promote M & A, expand the(Million of yen)sales area, and advance to new overseas bases.
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％3

Sales

Policy of consistently providing stable dividends◎ Plans to pay an annual dividend of 28 yen per share◎ No change was made to the dividend forecasts (announced May 9, 2019).

3028 yen
per share

25620151012 yen

12 yenper shareper share

12 yenper share

12 yenper share

666614 yen
per share

66yen
per share

1414141414141111628 yen
per share

85628

28 yenper share

60

Interim dividend

Year-end dividend

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)

1H FY03/15
Results

1H FY03/16
Results

1H FY03/17Results

1H FY03/18
Results

1H FY03/19
Results

1H FY03/20
Results

87,274

84,77382,201

84,911

88,84093,015

Operating profit

1,816

1,856

4,406

3,114

3,475

5,500

Recurring profit

1,585

1,779

4,428

3,143

3,580

5,608

Net income

225

277

2,384

1,246

1,736

3,492

EPS (Yen)

1.96

2.39

21.00

9.76

13.26

26.67

Sales

7

(2) Sales by segment(Millions of yen)

1H FY03/15
Results

1H FY03/16
Results

1H FY03/17
Results

1H FY03/18
Results

1H FY03/19
Results

1H FY03/20
Results

Gas andPetroleum

42,75437,95832,49632,77733,94835,766

Information andCommunications

19,546

20,42523,75024,90625,15425,911

CATV

12,144

12,212

12,56013,607

15,135

15,593

Building and Real
Estate

8,197

9,301

8,040

8,349

8,987

9,736

Aqua

2,423

2,746

2,929

3,055

3,490

3,752

Others

2,207

2,128

2,423

2,214

2,123

2,255

87,274

84,77382,201

84,911

88,84093,015Total

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

1H FY03/15
Results

1H FY03/16
Results

1H FY03/17
Results

1H FY03/18
Results

1H FY03/19
Results

1H FY03/20
Results

Gas andPetroleum

2,028

2,661

2,838

1,562

1,084

1,966

Information andCommunications

2,389

1,086

1,910

1,541

1,608

2,269

CATV

843

968

1,451

1,769

2,330

2,539

Building and Real
Estate

143

347

324

388

554

843

Aqua

-979

-616

201

135

291

400

Others,adjustments-2,608-2,590-2,318-2,282-2,393-2,519

Total

1,816

1,856

4,406

3,114

3,475

5,500

*Prior to elimination of indirect expenses

9(4) Consolidated financial indicators(Millions of yen)1H FY03/15
Results

1H FY03/16
Results

1H FY03/17
Results

1H FY03/18
Results

1H FY03/19
Results

1H FY03/20
Results

Total assets

164,477

160,237

153,384

160,467

164,920 165,616

Total liabilities

125,521117,722

109,380

101,644

102,493 100,633

Total net assets

38,95642,51444,00458,82262,42664,982

Balance ofinterest-bearing
debt

80,93076,25365,76155,01954,93050,927

EBITDA

10,495

10,231

12,217

10,764

10,892

13,116Equity ratio

23.1 %

25.9 %

28.2 %

36.0 %

37.1 %

38.4 %10(5) Consolidated cash flows(Millions of yen)

1H FY03/15
Results

1H FY03/16
Results

1H FY03/17
Results

1H FY03/18
Results

1H FY03/19
Results

1H FY03/20
Results

Operating cashflow

11,476

4,412

12,039

7,888

7,193

10,706

Investment
cash flow-4,515-5,289-4,668-6,931-6,964-6,859

Free cash flow

6,961-876

7,370

957

229

3,846

Financing cashflow

-8,021236-8,833-1,427

58-3,65911

(6) Group customer count(Thousands of customers)

Information andCommunications

Gas (LP and city gas)Previous ISP
model, etc.
Hikari Collaboration

LIBMO
MobileSubtotal

CATV
Aqua
Security
Total

1H FY03/15
Results

1H FY03/16
Results

1H FY03/17
Results

1H FY03/18
Results

1H FY03/19
Results

1H FY03/20
Results

626

627

634

648

670

696

861

742

565

492

440

403－
－
231
1,093
690

117

272－
234
1,093
698－
234
1,071
722

315
13
231
1,050
995

328
36
223
1,028
1,046

324
43
215
985
1,076

132
182,535

132
182,543

135
172,554141
172,827

156
172,893

159
162,918
12*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.

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
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