October 29, 2020TOKAI 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, 2021
Achieved an Expanded Customer Base and Operating Results Level with the Record-Highs
Set in the First Six Months of the Previous Fiscal Year despite Impact from the COVID-19
Pandemic

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

1. Customer count increased approximately 140% 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, theCompany is actively applying strategies aimed at expanding its earnings base, including investing inM&A and forming business alliances. The Company also works to address an ongoing businessobjective 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 six months ended September 30, 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 3,042,000 continuing customers as of September 30, 2020. This
continuing customer count exceeded the count at the beginning of the year (3,003,000) by
39,003 (versus an increase of 16,250 in the same period of the previous fiscal year).
With net increases of 15,365 (LP and city) gas customers, 25,077 CATV customers, and
7,569 Hikari Collaboration customers, we further expanded our earnings base.

2. Despite impact from the COVID-19 pandemic, financial results were level with therecord-highs of the first six months of the previous fiscal year and above targets
In the six months ended September 30, 2020, the Company recorded sales of 89,836 million yen(-3.4% 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 associatedwith a drop in procurement prices (no impact on profits), as well as by a delay in sales activities causedby 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, CATV, and Aqua businesses and greater profit from the Information
and Communications business for corporate clients. As a result, operating profit came to 5,452 million
yen, down 0.9% year on year but mostly level with the same period of the previous fiscal year.
Operating profit exceeded the company’s internal projections by approximately 700 million yen
and achieved 36% of its full-year target, higher than ratios achieved in the past (typically 30–31%).
(Millions of yen)
Q2 FY03/21 results Q2 FY03/20 results

YoY(April 1, 2020 toSeptember 30, 2020)(April 1, 2019 toSeptember 30, 2019)

Sales

89,83693,015-3,179-3.4%

Operating profit

5,452

5,500-48-0.9%

Recurring profit

5,499

5,608-109-1.9%

Net income

3,279

3,492-212-6.1%

EPS (yen)

25.04

26.67

-1.63

-6.1%

Change% change

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 the Company’s current medium-term management plan, and theCompany intends to lay the foundation for growth achieved under its 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 offiscal year

64.60

62.93

+1.67

+2.7%

3,105,000

3,003,000+102,000

+3.4%

(Yen)
Dividends

FY03/21 (forecast)

FY03/20

Interim (end of Q2)

14.00

14.00

Year-end

14.00

14.00

Annual dividend total

28.00

28.00

Consolidated payout ratio

43.3%

44.5%

For details, please see the attached materials, entitled “Financial Results for the First Six Months ofthe Fiscal Year Ending March 31, 2021.”
Further, for the Company’s earnings announcement for the first six 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 tothe 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 Second Quarter of theFiscal Year Ending March 31, 2021
TOKAI Holdings Corporation(Code: 3167)
October 29, 2020

Steady growth of customer base in core businesses◎ Continuing customer count reached 3,042,000 at the end of Q2, up 39,000 from 3,003,000 at thebeginning of the year.
◎ Earnings base further expanded for mainstay gas, CATV, and Hikari Collaboration businesses.
(LP and City) Gas(Thousands of customers)

CATV+15760
25

Hikari Collaboration

+25

1,250

1,179

1,200

157740728

131115+9332

333
331

1,150 2+14+14329
327-4

1,100-3700

325

91,050
10680

696

5660

1,046

1,000

1,076

328

321

324-13319

950670317
900-186400

3Q2 FY03/19323-8

75335

20
720

+11+5+8Q2 FY03/20

Q2 FY03/21

Q2 FY03/19

Q2 FY03/20

Q2 FY03/21315
Q2 FY03/19

Q2 FY03/20

Q2 FY03/21

Customer count at end of period

Customer count at end of period

Customer count at end of period

Net increase

Net increase

Net increase

Note: Figures are rounded to the nearest thousand.

1Remained the same level as the same period of theprevious fiscal year and exceeded the plan
◎ Despite an increase in sales due to an increase in the number of customers and an expansion of theinformation and communications business for corporations, sales decreased due to a decrease in
selling prices resulting from a drop in the purchase price of gas and a delay in sales activities in theaftermath of Corona.
◎ In terms of profits, some businesses were affected by Corona, but operating profits landed at thesame level as the same period of the previous year, supplemented by an increase in profits due to anincrease in monthly billing due to an increase in the number of customers and an increase in theinformation and communications business for corporations.
◎ Exceeded the internal plan and the progress rate (36%) against the full-year plan is also higher thanthe historical level(Millions of yen)YoY

Q2 FY03/21 results Q2 FY03/20 results(April 1, 2020–September 30,2020)(April 1, 2019–September 30,2019)

Sales

89,836

93,015-3,179-3.4%

Operating profit

5,452

5,500-48-0.9%

Recurring profit

5,499

5,608-109-1.9%

Net income

3,279

3,492-212-6.1%

EPS (yen)

25.04

26.67

-1.63

-6.1%

Change% change

2

Maintain growth trend with higher sales and profits◎ Fourth consecutive year of sales growth and third consecutive year of record earnings, continuing thegrowth trend◎ In addition to completing the Medium-Term Management Plan IP20"JUMP, we will continue to focus
on expanding our customer base for medium-to long-term growth, while laying the groundwork forgrowth in the next Medium-Term Management Plan.
◎ Working on the themes of "Further promotion of M&A," "Implementation of ABCIR + S," and"Deepening TLC"
(Millions of yen)

YoY

FY03/21 forecast

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

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)

64.60

62.93+1.67+2.7%3,105,000

3,003,000+102,000+3.4%

Customer count at
end of fiscal year

Change% change

3Policy of consistently providing stable dividends◎ We plan to pay an annual dividend of ¥28/share under our dividend policy of striving for continuousand stable dividends.
◎ No change was made to the dividend forecasts (announced May 8, 2020).

28 yenper share30

201028 yen

28 yen28 yen pershare
per shareper shareper share

141414

1414

14

14

14

FY2017FY2018FY2019FY2020（Forecast）

625

1528 yen

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

66661111566666

FY2011FY2012FY2013

FY2014FY20150Interim dividend

FY2016

Year ended 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 FY03/17
Results

1H FY03/18
Results

1H FY03/19
Results

1H FY03/20
Results

1H FY03/21
Results

82,20184,91188,840

93,01589,836

Operating profit

4,406

3,114

3,475

5,500

5,452

Recurring profit

4,428

3,143

3,580

5,608

5,499

Net income

2,384

1,246

1,736

3,492

3,279

EPS (Yen)

21.00

9.76

13.26

26.67

25.04

Sales

7

(2) Sales by segment(Millions of yen)

1H FY03/17
Results

1H FY03/18
Results

1H FY03/19
Results

1H FY03/20
Results

1H FY03/21
Results

Energy32,49632,77733,94835,76633,430Information andCommunications

23,75024,90625,15425,911

25,131

CATV

12,56013,607

15,135

15,593

16,490Construction,Equipment and Real
Estate

8,040

8,349

8,987

9,736

9,074

Aqua

2,929

3,055

3,490

3,752

3,880

Others

2,423

2,214

2,123

2,255

1,828

82,201

84,911

88,84093,01589,836Total

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

1H FY03/17
Results

1H FY03/18
Results

1H FY03/19
Results

1H FY03/20
Results

1H FY03/21
Results

Gas and Petroleum

2,838

1,562

1,084

1,966

2,382

Information andCommunications

1,910

1,541

1,608

2,269

2,036

CATV

1,451

1,769

2,330

2,539

2,633

Construction,Equipment and Real
Estate

324

388

554

843

621

Aqua

201

135

291

400

446

Others, adjustments-2,318-2,282-2,393-2,519-2,667

Total

4,406

3,114

3,475

5,500

5,452

*Prior to elimination of indirect expenses

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

1H FY03/17
Results

1H FY03/18
Results

1H FY03/19
Results

1H FY03/20
Results

1H FY03/21
Results

Total assets

153,384

160,467

164,920

165,616

167,687

Total liabilities

109,380

101,644

102,493

100,633

98,288

Total net assets

44,00458,822

62,42664,982

69,398

Balance of interestbearing debt

65,76155,01954,93050,92748,259

EBITDA

12,217

10,764

10,892

13,116

13,350Equity ratio

28.2 %

36.0 %

37.1 %

38.4 %

40.5 %
10(5) Consolidated cash flows(Millions of yen)

1H FY03/17
Results

1H FY03/18
Results

1H FY03/19
Results

1H FY03/20
Results

1H FY03/21
Results

Operating cashflow

12,039

7,888

7,193

10,706

14,805Investment cashflow

-4,668-6,931-6,964-6,859-10,696

Free cash flow

7,370

957

229

3,846

4,109Financing cash
flow-8,833-1,427

58-3,659-4,04811

(6) Group customer count(Thousands of customers)

1H FY03/18
Results

1H FY03/19
Results

1H FY03/20
Results

1H FY03/21
ResultsGas (LP and city gas)

634

648

670

696

728

Previous ISP
model, etc.

565

492

440

403

379

Hikari Collaboration

272

LIBMO－837

315
13328
36324
43

332
51

819

804

770

762

722
135

995
141

1,046
156

1,076
159

1,179
161

234
17231
17223
17215
16

209
16

2,554

2,827

2,893

2,918

3,042
12

Information andCommunications1H FY03/17
Results

MobileSubtotal

CATV
Aqua
Security
Total*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