December 14, 2022
To whom it may concern
Company Name: TOKAI Holdings Corporation
Representative Name:
President & CEO
Katsuo Oguri(Code No. 3167, TSE Prime Market)
Contact:
Yoshihiro Taniguchi, Public Relations and Investor
Relations Office
TEL: +81-(0)3-5404-2891

Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2023
– Net sales for the first six months grew for the second consecutive fiscal year to reach a new record high –TOKAI Holdings Corporation (hereinafter, “the Company”) today announced its financial results for the first six
months of the fiscal year ending March 31, 2023.

1. The Company continued to expand its earnings base to achieve a net annual increase of
100,000 in customer count.
The Company announced the Medium-Term Management Plan in May last year. The plan covers the period
up to the fiscal year ending March 31, 2025.
Among its key strategies is to expand the business area. To pursue this strategy, the Company worked toincrease market share in existing areas, to expand into new sales areas in Japan and to launch overseas operations.
Taking the approach of selection and concentration with a focus on profitability, we boosted the number ofcustomers.
To achieve 3.56 million customers at the end of the fiscal year ending March 31, 2025, the Company will
pursue an aggressive strategy to expand its earnings base, aiming to achieve 3.30 million customers (a net annual
increase of 100,000 in customer count) at the end of the fiscal year under review.
In operating activities in the first six months of the fiscal year under review, the Company aggressively
conducted sales activities to gain customers while thoroughly taking measures to prevent COVID-19 infections
and recorded 3,242,000 continuing customers as of September 30, 2022. This continuing customer exceeded
the count at the beginning of the fiscal year (3,194,000) by 48,618 (versus an increase of 26,127 in the same
period of the previous fiscal year).
With net increase of 19,094 (LP and city) gas customers (19,920 in the same period of the previous fiscal
year), 15,910 CATV customers (16,613),11,849 Hikari Collaboration customers (1,985) and 6,852 LIMBO(MVNO service) customers (1,034), we further expanded our earnings base.

2. Net sales for the first six months grew for the second consecutive fiscal year to surpass 100
billion yen for the first time
For the first quarter under review, net sales stood at 104.1 billion yen, up 8.0 billion yen or 8.4% year on
year. The figure surpassed the 100 billion yen mark for the first time ever, rising for the second consecutive
year to a new record high. This resulted chiefly from sales growth following an increase in energy, CATV andother customers, rises in selling prices linked with energy purchase prices, and expansion of the stock businessfor corporate clients in the Information and Communication business.
On the profit front, operating profit stood at 4.3 billion yen, down 1.0 billion yen or 18.6% year on year. Thisis explained by LP gas purchase prices that were far higher than the level in the same period a year earlier and anincrease in expenses for gaining customers in the Information and Communication business for consumers, which
endeavored to shift towards a net increase in customers. These factors more than offset earnings growth after anincrease in the number of monthly fee-paying customers accompanying an increase in the number of customer
accounts, as well as a rise in profit in the Information and Communications business for corporate clients.
Profit attributable to owners of parent stood at 0.15 billion yen, down 2.13 billion yen or 93.5% year on year.
This is due mainly to impairment losses of goodwill of an equity-method affiliate based in Vietnam and theposting of a loss on valuation of investment securities.
(Millions of yen)

N e t

s a l e s

Q2 FY03/23
results

Q2 FY03/22
results(April 1, 2022 to September 30,
2022)(April 1, 2021 to September 30,
2021)

104,110

96,060

YoY
Change+8,049% change+8.4％

Operating profit
Ordinary profit
Profit attributable to ownerso f
p a r e n t
E P S( y e n )

4,253
2,432
147

5,223
5,284
2,281

-969
-2,851-2,134-18.6％-54.0％-93.5％

1.13

17.42

-16.29-93.5％

3. To Achieve the Medium-Term Management Plan
With its Corporate Philosophy “For customers’ livelihood along with the region, together with the earth, wewill continue to grow and develop” as an unchanging value, the Group will adapt to changes in customers’
lifestyles and changes in society and the environment and, while supporting and staying close to customers, aims
to evolve into a Group that designs and provides the new lifestyles of the future. To this end, we are working on
the Medium-Term Management Plan.
The fiscal year ending March 31, 2023 is the second fiscal year of the Medium-Term Management Plan. For
this period, the Group will make concerted efforts to accelerate the expansion of business areas and digitalmarketing, to create open innovation, to step up the DX strategy, to optimally allocate management resources,
and to strengthen its SDG initiatives.
To date, the earnings and dividend forecasts for the fiscal year ending March 31, 2023 remain unchanged fromthose announced on May 10, 2022.
(Millions of yen)
FY03/23 forecast
FY03/22 results
YoY(April 1, 2022 to(April 1, 2021 toChange% change
March 31, 2023)
March 31, 2022)
N e t
s a l e s
223,000
210,691+12,309+5.8％
Operating profit
14,50015,794-1,294-8.2％
Ordinary profit
14,30015,907-1,607-10.1％
Profit attributable to owners
8,300
8,969
-669
-7.5％
o f
p a r e n t
E P S( y e n )
63.43
-5.06
68.49
-7.5％
Customer count at end of
3,295,000+101,000+3.2％
3,194,000
f i s c a ly e a r
FY03/23(forecast)Interim (end of Q2)
Y e a r - e n d
Annual dividend per share

FY03/2316.00 yen

16.00 yen
32.00 yen

FY03/2215.00 yen
17.00 yen
32.00 yen

For details, please see the attached materials, entitled “Financial Results for the First Six Months of the Fiscal Year Ending March
31, 2023.”
For the Company’s earnings announcement for the first six months of the fiscal year ending March 31, 2023, please see thefollowing URL:
https://www.tokaiholdings.co.jp/ir/library/earnings.html* For the details of the Medium-Term Management Plan, please see the following URL:
https://www.tokaiholdings.co.jp/ir/management/manageplan.html

Financial Results for the Second Quarter of the
Fiscal Year Ending March 31, 2023
TOKAI Holdings Corporation(Code: 3167)
December 14, 2022

Expansion of earnings base proceeds◎ The number of continuing customers as of September 30, 2022 stood at 3,242 thousand, an increase of 49 thousand
from 3,194 thousand at the beginning of the fiscal year.
◎ The earnings base continued to expand in the gas business, the CATV business, the Hikari Collaboration businessand the LIMBO business.
Gas (LP and city)(Thousand)

+20

20

16

860

+19

+25

804

1,300

+17

20

+15

Hikari Collaboration

CATV

820

+16
1,247

10

+12

-10
740

1,200
-5

-20

1,180
-10

8

700
-30

0

1,214

Number at end of period

FY2022_2Q(Current fiscal
year)

Net increase* Rounded to the nearest thousand

+2

62
+1

h
-2
340

330

1,160

1,179

-15
1,140

660
-40
FY2020_2Q
FY2021_2Q(Two years earlier) (Previous fiscal
year)

360
3

0
1,220

n

728

+4

358

350

12

764

+7

8
370

+8

1,260
5
1,240

780
0

4

1,280
10

LIBMO

332

-7

339

320

1,120
-20
FY2020_2Q(Two years
earlier)

FY2021_2Q(Previous fiscal
year)

Number at end of period

FY2022_2Q(Current fiscal
year)

Net increase

FY2020_2Q(Two years
earlier)

FY2022_2Q
FY2021_2Q(Previous fiscal (Current fiscal
year)
year)

Number at end of period

51

54

310
-12

Net increase

FY2020_2Q(Two years
earlier)

FY2021_2Q(Previous fiscal
year)

Number at end of period

FY2022_2Q(Current fiscal
year)

Net increase1Massive growth in monthly fee-paying
customers in core businesses◎ Increasing customers constituting our earnings base leads to a sales rise based on growth of monthly fee-paying
customers.
Number of monthly fee-paying customers(Thousand)
3,575

2,103

5,957

5,881
3,477

450 (up 14.4%)

5,809
5,725

3,400

2,050

150 (up 7.6%)

5,644
2,024

3,327

690 (up 13.1%)

2,007

3,251
3,180

5,344

3,126

1H

2H

FY20191H

2H

FY2020

1H

2H

FY2021

1H

1H

FY2022

1,963

1,955

5,269

1,944

2H

FY2019LP Gas Business

1H

2H

FY2020

1H

2H

FY2021

1H
FY2022

CATV Business

1H

2H

1H

FY20192H

FY2020

1H

2H

FY2021

1H
FY2022

Hikari Collaboration

2

Q2 net sales grow for the second
consecutive year to set new record high◎ Net sales rose for the second fiscal year to reach a new record high. This is the first time the net sales figure for the
first six months has surpassed 100 billion yen. The result chiefly reflects an increase in customers, rises in selling
prices linked with energy purchase prices, and expansion of the Information and Communication business forcorporate clients.
◎ Operating profit fell 1 billion yen year on year, primarily because of soaring LP gas purchase prices and an increasein expenses for gaining customers, despite earnings growth after an increase in the number of monthly fee-paying
customers accompanying an increase in the number of customer accounts, as well as a rise in profit in the
Information and Communications business for corporate clients.
◎ Profit attributable to owners of parent dropped 2.1 billion yen on year, due mainly to impairment losses of goodwill ofan equity-method affiliate and the posting of a loss on valuation of investment securities.
(Net sales and profit: million yen; EPS: yen)YoY

Q2 FY03/23 results Q2 FY03/22 results(April 1, 2022 –September 30, 2022)(April 1, 2021 –September 30, 2021)

Change% change

Net sales

104,110

96,060+8,049+8.4%

Operating profit

4,253

5,223

-969

-18.6%

Ordinary profit

2,432

5,284

-2,851-54.0%

Profit attributable toowners of parent

147

2,281

-2,134-93.5%EPS (yen)

1.13

17.42

-16.29-93.5%

3

Year-on-year comparisonin 2Q operating profit by segment◎ Energy, CATV and Aqua profits surged following increases in customers. Information and Communication for corporateclients was also strong.
◎ A profit decline in Energy is due mainly to the rise in gas purchase costs (of 1.8 billion yen year on year).
◎ The number of customers gained in Information and Communications for individuals rise considerably year on year
whereas the expenses for gaining customers increased.
Operating profit(100 millions of yen)

3.12

60.0

millioncustomers

50.0

52.2

3.24
millioncustomers

-6.3

-0.8

EnergyInformation andCommunications

+1.0

-1.5

CATV

Construction,
Equipment, andReal Estate

+0.5

-2.5

Aqua

Others andadjustments

40.0
Increase incustomers
Purchase
costs
Cost forcustomeracquisition
Temperatureand others

30.0

20.0

Other

10.0

+4.1
-10.6
－
-2.8
+3.0

For
corporateclients
For
individual
clients
Acquisition
costs
LIBMO

+3.2

Increase incustomers

+1.0

+0.8

Renovation-0.3

Building
facilities-1.2

Increase incustomers
Acquisition
costs

+0.1
+0.4

Wedding
ceremonies
and others+1.3

Adjustments

-3.8

42.5

-4.9
+0.1

0.0

FY2021_2Q
分類 1
Results

エネルギー

情報通信

建築不動産

CATV

アクア

FY2022_2Q
分類 7
Results

その他調整額4* Changes in operating profit disregard allocation of indirect costs.

Optimal Allocation of Management Resources
for Increasing Shareholder Value◎ The equity ratio continued to rise by 0.2 percentage points.
◎ Although free cash flow declined year on year, the ratio of interest-bearing debt to EBITDA stayed at 1.5,
unchanged from the end of the previous fiscal year.

Equity ratio

41.9

%

End of March 2022

Interest bearing liabilities

44.1

billion yen

End of March 2022

Operating cash flow

11.4

billion yen

FY09/2021

Investment cash flow

-9.0

billion yen

FY09/2021

Free cash flow

2.4

billion yen

FY09/2021

Interest-bearing debt/EBITDA

1.4

times

FY03/2022

➡

42.1

➡

47.1

➡

8.0

➡

-6.9

➡

1.1

➡

1.5

* The ratio of interest-bearing debt to EBITDA for 1H of FY2022 is based on the full-year forecast EBITDA.

%

End o September 2022
billion yen

End of September 2022
billion yen

FY09/2022
billion yen

FY09/2022
billion yen

FY09/2022
times

FY09/20225

Consolidated full-year financial results forecast
 Net sales are forecast to increase 12.3 billion yen, or 5.8% year on year, to reach a new record high for the fifth
consecutive fiscal year. This is chiefly attributable to growth in customer numbers and increases in orders received from
corporate clients in the Information and Communications business and in the Construction, Equipment and Real Estatebusiness.
 Operating profit is expected to fall 1.3 billion yen year on year, taking into account an impact of 5.1 billion yen from rising
LP gas purchase prices.
 The LP gas business will continue to drive the active attraction of customers on the basis of pricing measures that will
maintain price competitiveness.
 The number of customers in the overall Group will rise 100,000 from 3.19 million at the end of the previous fiscal year, to3.30 million.
(100 millions of yen)

Forecast forthe current
fiscal year

Results forthe previous
fiscal year

(FY2022)(FY2021)

2,230
145
143

2,107
158
159

+123
-13
-16

+5.8
-8.2
-10.1

2,210
156
－

83

90

-7

-7.5

90

3.30 million 3.19 million +0.1 million+3.2

Net sales
Operating profit
Ordinary profit
Profit attributableto owners of parent
Customer count at
end of fiscal year

YoY
% change(%)

ChangeMedium-Term
Management
Plan(FY2022)

From the Medium-Term
Management Plan
% change(%)

Change+20 +0.9-11 -7.1
－
－
-7

-7.8

3.32 million -0.02 million-0.6
6

Dividend forecast◎ Annual dividend per share is projected to stay unchanged at 32 yen per share from the previous fiscal year.
◎ The dividend forecast (announced on May 10, 2022) remains unchanged.

54.7%

52.9%

50

50.5%
47.2%

46.7%

45

44.5%

43.4%
40

44.6%

30

35.1%

30

28

28

28

28

yen/shareyen/shareyen/shareyen/shareyen/share

6

20

32

32

40.0%

yen/share yen/share
30.0%

25

10

50.0%

40.2%

35

15

46.7%

14

12

12

12

yen/shareyen/shareyen/share

6

6

6

8

6

6

6

6

yen/share

5

14

14

16

14

16

17

20.0%

11
11

14

14

14

14

16

15

0

10.0%

0.0%

FY2012FY2013

FY2014

Interim dividend

FY2015FY2016Year-end dividend

FY2017FY2018FY2019FY2020Commemorative dividend

FY2021

FY2022(forecast)

Payout ratio

7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(7) EBITDA by business(1) Consolidated results(Millions of yen)

1H FY03/19
Results

1H FY03/20
Results

1H FY03/21
Results

1H FY03/22
Results

1H FY03/23
Results

88,84093,01589,836

96,060104,110

Operating profit

3,475

5,500

5,452

5,223

4,253

Recurring profit

3,580

5,608

5,499

5,284

2,432

Net income

1,736

3,492

3,279

2,281

147

EPS (Yen)

13.26

26.67

25.04

17.42

1.13

Sales

9

(2) Sales by segment(Millions of yen)

1H FY03/19
Results

1H FY03/20
Results

1H FY03/21
Results

1H FY03/22
Results

1H FY03/23
Results

Energy33,94835,76633,43036,15344,053

Information andCommunications

25,15425,911

25,13125,302

26,078CATV

15,135

15,593

16,49016,081

16,574

Construction,
Equipment and Real
Estate

8,987

9,736

9,074

12,361

11,486

Aqua

3,490

3,752

3,880

3,913

3,838

Others

2,123

2,255

1,828

2,248

2,077

88,84093,01589,836

96,060104,11010Total(3) Operating profit by segment(Millions of yen)

1H FY03/19
Results

1H FY03/20
Results

1H FY03/21
Results

1H FY03/22
Results

1H FY03/23
Results

Gas and Petroleum

1,084

1,966

2,382

1,963

1,330

Information andCommunications

1,608

2,269

2,036

2,405

2,320

CATV

2,330

2,539

2,633

2,957

3,052

Construction,
Equipment and Real
Estate

554

843

621

738

589

Aqua

291

400

446

186

234

Others, adjustments-2,393-2,519-2,667-3,027-3,274

Total

3,475

5,500

5,452

5,223

4,253
11

*Prior to elimination of indirect expenses

(4) Consolidated financial indicators(Millions of yen)

1H FY03/19
Results

1H FY03/20
Results

1H FY03/21
Results

1H FY03/22
Results

1H FY03/23
Results

Total assets

164,920

165,616

167,687

177,855

180,807

Total liabilities

102,493

100,633

98,288100,713102,948

Total net assets

62,42664,982

69,39877,14277,859Balance of interestbearing debt

54,93050,92748,25945,212

47,109

EBITDA

10,892

13,116

13,35013,193

12,241Equity ratio

37.1 %

38.4 %

40.5 %

42.5 %

42.1 %
12(5) Consolidated cash flows(Millions of yen)

1H FY03/19
Results

1H FY03/20
Results

1H FY03/21
Results

1H FY03/22
Results

1H FY03/23
Results

Operating cash
flow

7,193

10,706

14,805

11,382

7,956

Investment cashflow

-6,964-6,859-10,696-8,997-6,861

Free cash flow

229

3,846

4,109

2,384

1,095

Financing cash
flow

58

-3,659-4,048-1,680-1,70913

(6) Group customer count(Thousands of customers)

1H FY03/20
Results

1H FY03/21
Results

1H FY03/22
Results

1H FY03/23
ResultsGas (LP and city gas)

670

696

728

764

804

Previous ISP
model, etc.

440

403

379

386

414

Hikari Collaboration

328

324

332

339

358

36

43

51

54

62

CATV

804
1,046

770
1,076

762
1,179

779
1,214

834
1,247

Aqua

156

159

161

165

167

Mobile

223
17

215
16

209
16

198
16

185
16

2,893

2,918

3,042

3,125

3,242
14

Information andCommunications

1H FY03/19
Results

LIBMO
Subtotal

Security
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.

（７） EBITDA by business(Millions of yen)

EnergyInformation andCommunicationsFor
individualFor
corporate

1H FY03/19
Results

1H FY03/20
Results

1H FY03/21
Results

1H FY03/22
Results

1H FY03/23
Results

3,427

4,355

4,699

4,348

3,806

662

867

396

3,018

3,174

3,536

2,936

3,774

5,230

5,372

5,627

5,804

5,948

Construction, Equipment
and Real Estate

894

1,192

1,001

1,224

1,104

Aqua

552

697

758

531

570

10,892

13,116

13,35013,193

12,241CATVEBITDA （All）* EBITDA = operating profit + depreciation (operating profit is before allocation of indirect costs, etc.)* Information and communication has been divided into those for individuals and those for corporations from the previous term. Before that, the numerical value of theentire information and communication is displayed.

15

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