May 9, 2017
TOKAI Holdings Corporation
Katsuhiko Tokita, President & CEO(Code No. 3167 Tokyo Stock Exchange First Section)
To whom it may concern

Announcement of New Medium-Term Management Plan
“Innovation Plan 2020 ‘JUMP’”
Aiming for Further Progress Through Fiscal Year Ending March 31, 2021
TOKAI Holdings Corporation (hereinafter, the “Company”) today announced its new
medium-term management plan “Innovation Plan 2020 ‘JUMP,’” a four-year plan starting in thefiscal year ending March 31, 2018.
1. Overview of Past Six Years
The Company has been working on the transition from managing individual companies togroup management in the six years since changing to a holding company structure in April 2011.
Improving the financial position was the main priority of the first medium-term plan
“Innovation Plan 2013” (FY03/12–FY03/14), while the focus of the second plan “Innovation Plan
2016 ‘Growing’” was on strengthening earnings capability over three years (FY03/15–FY03/17).
As a result, the Company made major improvements to its financial position, withinterest-bearing debt reduced by about 50% from 124.0 billion yen immediately prior totransitioning to a holding company structure to 54.1 billion yen at the end of FY03/17, and theequity ratio significantly increasing from 7.7% to 34.5% over the same period.
The Company also made progress in earnings performance, with net income per share morethan doubling from 27.17 yen in the first fiscal year as a holding company to 64.46 yen in FY03/17.
Our market capitalization increased 2.3 times from 52.7 billion yen on the date of becoming aholding company to 119.0 billion yen at the end of FY03/17. Overall, the Company believes that it
has laid the groundwork for embarking on an investment strategy that aims for further growth asa group.
2．Reasons for Naming of New Medium-Term Management Plan
“Innovation Plan 2020 ‘JUMP’” carries four key messages: “Switch from defensive to proactive
management stance,” “Progress M&A,” “Prioritize profit growth and ROE,” and “Shareholders
are always a priority.” In this context, the Company has allocated 100 billion yen for M&A activity
and targets sales of 339.3 billion yen, operating profit of 22.5 billion yen, and ROE of 13% in
FY03/21.
1) Four key messagesa) Switch from defensive to proactive management stanceIn the next four years, the Company is switching from a defensive to proactive management
stance with the primary goal of topline growth. The Company plans to invest aggressively in
M&A and alliances over four years, allocating 100 billion yen in cash for this purpose. Its
strategy is shifting from a stage of improving its financial position over the past six years to oneof leveraged investments to accelerate growth.
b) Progress M&A
The Company’s primary focus is to increase the earnings base and customer numbers of its coreGas, CATV, and Information and Communications businesses by an aggressive M&A strategy.
As well, the Company plans to acquire monthly-fee-based, daily life-related services thatharness the strengths of the group business model to increase cross-selling.
c) Prioritize profit growth and ROE
The Company aims to double sales over four years and roughly double operating profit and net
income from FY03/17 to FY03/21. It also aims to maintain ROE at a high level, targeting 13%
in FY03/21.
d) Shareholders are always a priority
The Company will adhere to its shareholder returns policy of sharing business returns in theform of stable, consistent dividends to reward shareholders.
In FY03/18, the Company plans to maintain the FY03/17 annual dividend per share of 28
yen. Although the FY03/17 dividend includes a 6 yen commemorative dividend for attaining
targets of the previous medium-term plan, the Company plans an ordinary dividend of 28 yen
per share in FY03/18.
The Company will consider another dividend increase in FY03/19 and beyond, based on the
projection of a further rise in consolidated net income.
2) Main management indicators
Targets for topline growth are a nearly twofold increase in sales to 339.3 billion yen in
FY03/21 versus 178.6 billion yen in FY03/17, 80% increase in operating profit to 22.5 billion yen,and 60% increase in net income to 11.5 billion yen.
In terms of financial indicators, the Company targets total assets of 283.4 billion yen in
FY03/21 (80% increase from FY03/17) by leveraged investments, but at the same time, also
keeps an eye on capital efficiency, maintaining the interest-bearing debt/EBITDA ratio at 2.8x,
equity ratio at 31.6%, and ROE at 13%.
The Company also plans to increase customer numbers (which form the Group’s earningsbase) by at least 70% from 2.56 million at end-FY03/17 to over 4.32 million at end-FY03/21

(Billions of yen)

FY03/17 results

FY03/21 targets

FY03/21 targets*(Based on M&A(Based on M&A

assumption of 51.1 billion assumption of 100 billion
yen)

yen)

Sales

178.6

274.3

339.3

Operating profit

12.8

18.5

22.5

Net income

7.3

10.3

11.5

Total assets

161.1

235.4

283.4

2.0

2.4

2.8

Equity ratio (%)

34.5

31.2

31.6

ROE (%)

15.2

14.0

13.0

Customer numbers (millions)

2.56

4.32

Over 4.32

Interest-bearing
debt/EBITDA ratio (x)*M&A plan of 51.1 billion yen is factored into the annual plan. The Company’s four-year target assumes an additional
M&A budget of 48.9 billion yen.

3) Aggressive investment for future growth in FY03/18
The Company estimates that operating profit of established businesses must grow to 18.5 billion
to attain the FY03/21 operating profit target of 22.5 billion yen. This requires additional investment
in future growth.
The Company estimates 1.1 billion yen profit growth in FY03/18 due to an increase in the numberof paying customers resulting from sales activities in the CATV, Gas, and Information andCommunications businesses, but expects a 1.4 billion yen profit decline due to investment of 2.5
billion yen for future growth.
Specifically, the 2.5 billion yen investment is for expanding the Gas business supply area,
promotion of new services in the Information and Communications business, and measures toprevent service cancellations by retail customers. By these actions, the Company aims to increase
the number of service subscribers/customers that forms its earnings base by 320 thousand (12.5%)
from 2.56 million in FY03/17 to 2.88 million in FY03/18.
The Company thus plans steady profit growth in established businesses in FY03/19 onward by
expanding customer numbers in the CATV and LP Gas businesses.

Note: 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 materiallyfrom the projections and other forward-looking statements in these materials.
Contact: Yoshihiro TaniguchiPublic Relations and Investor Relations Office
TEL: +81-(0)54-273-4878
Email: overseas_IR@tokaigroup.co.jp

Innovation Plan 2020 “JUMP”～Aiming for further progress through FY03/21～
May 9, 2017
TOKAI Holdings Corporation (Code: 3167)
Katsuhiko Tokita, President & CEO

Ⅰ. Overview of Past Six Years
Since Changing to
Holding Company Structure1

FY03/17 results summary
Sharp 4.5 billion yen (54.6%) operating profit growth from 8.2 billion yen in FY03/16, with all profit
indicators posting historic highs. Results surpassed upward revision announced in October 2016.
Net increase of customer numbers continued.
Further progress with financial position improvement: interest-bearing debt reduced to 54.1 billion
yen and capital ratio up to 34.5%
Annual dividend increases two fiscal years in a row, doubling in FY03/17 (including 6 yencommemorative dividend for attaining medium-term plan target)

FY03/16

Forecast

Result

Net income

8,245 million yen 12,750 million yen 12,750 million yen
3,458 million yen 6,500 million yen 7,337 million yen

Customer numbers

2,558 ,000

Operating profit— ,0002,564 ,000

Interest-bearing
debt

71.4 billion yen— billion yen

54.1 billion yen

Equity ratio

25.6 %—%

34.5 %

Annual dividend

14 yen/share

28 yen/share

28 yen/share
2

Results of IP13 and IP16 challenges
Transitioned from managing individual companies to group management as holding
company
Substantial gains from financial position improvement in first medium-term plan IP13and strengthened earnings capability in second plan IP16 “Growing”
Sales up in real terms to 193.3 billion yen on increased retail customers, but offset by
11.4 billion yen negative effect of lower gas procurement prices
Interest-bearing debt

124.0

billion yen

At end-March 2011

Equity ratio

7.7%

At end-March 2011

EPS

27.17

yen

At end-March 2012

Market capitalization(includes treasury stock)

52.7

Consolidated sales

181.9

billion yen

April 1, 2011
billion yen

At end-March 2012

➡
➡
➡

54.1

billion yen

At end-March 2017

34.5

%

At end-March 2017

64.46

yen

At end-March 2017

➡ 119.0➡ 178.6

billion yen

March 31, 2017
billion yen

At end-March 20173

Share price far outperformed TOPIX
Shares far outperformed TOPIX (benchmark) thanks to improved earnings
performance/financial position plus effect of capital policy
Indexed to April
1, 2011 = 100
250(15,520,000 shares)◎ TOKAI Holdings share price
Closing
price onApril 1,2011

200

6 yen dividend increase
to 28 yen per share(annual)Cancellation of treasury stock

2.5x

➡

340 yen

2 yen dividend
increase to 14 yen
per share (annual)

Issued yen-denominatedconvertible bonds

Closing
price onMarch 31,2017

856 yen150

8 yen dividend increase to
22 yen per share (annual)

Acquisition of treasury stock (3.31 million
shares for 1.8 billion yen)100

50
11/04/01

11/12/26

12/09/13

13/06/12

14/03/07

Ｉｎｎｏｖａｔｉｏｎ Ｐｌａｎ 2013

TOKAI
当社
Holdings

TOPICSTOPIX

Five sector companies’
同業5社平均average

14/11/28

15/08/24

16/05/24

17/02/15

Ｉｎｎｏｖａｔｉｏｎ Ｐｌａｎ 2016 “Growing”

4

Achieved average financial soundness
performance among listed companies in six years
Big improvement from critical levels of interest-bearing debt thanks to strict
cash flow management; groundwork laid for strategy of investment for growthInterest-bearing
debt

124.0

FY03/11124.0

FY03/17➡

billion yen

54.1
billion yen

1,200

FY03/11Equity ratio

7.7

1,000

%

FY03/17

➡

34.5

40.0

34.5
35.0

%
30.0

800

25.0

54.1

600

20.0

400
15.0

200

7.7

10.0

0

5.0

FY2010FY2011FY2012FY2013

Interest-bearing debt (billion yen)
有利子負債残高（億円）

FY2014FY2015Equity ratio (%)
自己資本比率（％）

FY2016

5

Ⅱ. Four Key Messages ofIP20 “JUMP”

6

1. From Defensive to Proactive
Management• Switch from defensive to proactive management
stance, making topline growth the main priority• Invest 100 billion yen cash over four fiscal years on
strategic M&A and alliances• Implement growth strategies that make the most of
M&A and alliances using leveraged investments

7

2. Progress M&A• As top priority, expand earnings base (customer numbers)of core Gas, CATV, and Information and Communications
businesses through M&A• Acquire monthly-fee-based, daily life-related services thatharness the strengths of the group business model toincrease cross-selling8

3. Prioritize profit growth and ROE• Double sales and roughly double operating profit andnet income versus FY03/17 over four years• Maintain high level of ROE at 13%

9４. Shareholders are always
a priority• Maintain shareholder returns policy of sharing businessreturns in the form of stable, consistent dividends to reward
shareholders• Shareholder returns plan: 28 yen per share ordinary
dividend in FY03/18 (first year of IP20), same as FY03/17(28 yen including 6 yen commemorative dividend)• Dividend increase a possibility in FY03/19 onward in viewof outlook for consolidated net income growth10

Ⅲ. Numerical targets ofIP20 “JUMP”

11

Numerical targets include doubling sales in
FY03/21 versus FY03/17
Target sales of 274.3 billion yen and operating profit of 18.5 billion yen for established businesses, plus M&A toattain FY03/21 sales of 339.3 billion yen and operating profit of 22.5 billion yen (up 90% and 80%, respectively,
versus FY03/17). Target 70% increase in customer count to 4.32 million over the same period.
Target interest-bearing debt/EBITDA ratio of 2.8x, equity ratio of 31.6%, and ROE of 13% by management
focused on capital efficiency.
(Billions of yen)

FY03/17

FY03/18

FY03/19

FY03/20

FY03/21

ResultTargetTargetTargetTarget

Sales

178.6

189.4

202.0

224.4

(+90%)

393.3

Operating profit

12.8

11.4

14.0

16.2

(+80%)

22.5

Net income

7.3

6.4

7.9

8.7

(+60%)

11.5

Total assets

161.1

169.8

173.8

191.2

(+80%)

283.5

2.0x

2.4x

2.2x

2.0x

2.8x

Equity ratio

34.5%

33.9%

35.6%

34.9%

31.6%

ROE

15.2%

11.1%

12.8%

13.0%

13.0%

2.56

2.88

2.99

3.72

Interest-bearing debt/EBITDA
ratio

Customer numbers (millions)(+70%)

4.32

Note: () denotes increase versus FY03/17

12

Begin aggressive investment to attain
18.5 billion yen target in FY03/18
Operating profit of established businesses must grow to 18.5 billion to attain the FY03/21 operating profit targetof 22.5 billion yen. This requires additional investment in future growth.
To this end, the Company shall invest 2.5 billion yen for further expansion of the gas business supply area,
introduction of new communications services, and implementing service cancellation prevention measures toincrease subscribers. Fee increase

150
140

2.56
millioncustomers

CATV +400
million yen
Gas +500
million yen
Info & Comm
+200 million
yen+1.1 billion yen

Factors increasing profits
Factors reducing profits

2.88
millioncustomers-1.1 billion yen

130
120

12.8

110

billionyen-500 million yen
Expand gas
supply area
Business bases:-300 million yen
Acquisition costs:-400 million yen
Prices:-400 million yen

100
90
80

FY03/17
分類 1
result

分類 2

分類 3

123

-900 million yen

Newcommunications
services
LIBMO promotion:-500 million yen

分類 5

11.4
Servicecancellation
prevention
measures
Gas: -300 million
yenInfo & Comm,
分類-6006
other:
million yen

billionyen

FY03/18
分類 7
forecast

13

Allocate 100 billion yen to M&A
To allocate 100 billion yen to investing in M&A and alliances to capture external growthTarget ROI (operating profit basis) of around 8% as a measure of investment thatprioritizes capital efficiency

Total M&A budget

100.0 Billion yen
116.9 Billion yen

Investment
Sales
Operating profit before goodwill
amortization

8.4 Billion yen

ROI (operating profit basis)

8.4 %4.0 Billion yen

Goodwill amortization
Note: Investment is four-year total; earnings figures are FY03/21 assumptions

14

Maintain annual dividend of 28 yen per
share in FY03/18
Reward shareholders by providing stable and consistent returns
Ordinary dividend of 28 yen per share planned for FY03/18, same as FY03/17
total, which includes 6 yen commemorative dividend
To consider dividend increase according to consolidated net income growth inshareholder returns of FY03/19 onward
55.0

52.9
46.7

44.2
40.2
35.1

43.4
6.0

28.0

To consider dividend
increase beyond
FY03/19 in accordancewith consolidated net
income growth

FY2017FY2018

22.0

12.0

12.0

12.0

12.0

FY2011FY2012FY2013

FY201414.0

FY2015

Dividend per share
1株当たり配当金

FY2016
Commemorative
記念配当
dividend

FY2019FY2020

Dividend payout ratio
配当性向

15

Ⅳ. Main strategies of IP20 “JUMP”

16

Pillars of M&A strategy
Allocate 100 billion investment budget overfour years
Purpose: To strengthen core businesses andacquire new services
Invest in new services in addition to Gas, CATV, and Information and Communications services

Establish section specializing in M&A
Establish section dedicated to screening and executing investments and progressing business integration
after acquisition. Responsibilities include collaborating with M&A specialists to gather information andsearching for future M&A targets by strengthening ties with venture capital firms and buyout funds

17Expand customer base and services by M&A
Aim to raise consolidated performance by M&A of companies with earnings base inaddition to growth of TOKAI Group’s established businesses (A)Plus, acquire monthly-fee-based, daily life-related services that harness the strengthsof the group business model (B) to generate synergies from cross-selling (C)Expected synergiesC) Generate synergies by offering groupproducts

HikariCollaborati
on

Aqua

Gas

New IT servicesビス

Renovation

CATV

Target companies in Gas, CATV, and Information
and Communications businesses

ISP

New IT servicesス
New energy services

Insurance

CATVA) Acquire stable earnings baseHikaricollaboration

TOKAI Group’s 2.56 million
individual customers

ISP

New energy services

M&A targets texample: CATV company)

Aqua
Gas

Security

Insurance

MobileRenovation

MobileSecurity

New IT services
New energy services

M&A targets
Companies with customers in new
business areas such as daily liferelated servicesB) Acquire new businesses and products/services

18

Generating synergies by acquiring earnings baseAcquisition of CATV operator with sales of 1.5 billion yen and 50,000 customers
enables sales of group’s diverse daily life-related products and services to these newcustomers
Based on the Company’s track record, this would create synergies of around 300
million yen in sales and 60 million yen in operating profit just from the following threebusinesses:

Communications service sales
Ten percent of customers switch from
CATV to TOKAI Group’s FTTH
Annual sales

Operating profit

Aqua service sales

Renovation service sales

Aqua service sold to three
percent of customers

Renovation service sold to
10% of market share

Annual sales

Operating profit

0 50 million yen 25 million yen 67million yen 10million yen
Assume roughly 10% of CATV-FTTH
customers switch to TOKAI Group’s
FTTH service (switch from CATVNET),adding 1,000 yen to monthly sales per
customer (10% profit margin)
CATV-FTTH has 30% market share in
the Company’s FTTH service area

Assume cross-selling potential of
3% of customers (50% of 6%
diffusion rate), adding 3,800 yen tomonthly sales per customer (15%profit margin)
The Company’s market share in thecity gas service area is 6%.

Annual sales

Operating profit

150 million yen 25 million yen
Assume the Company captures 10%
renovation demand at average sales per
customer of 30,000 yen
The Company has sold renovation services to
12% of customers in its city gas service area
(average sales per customer: 30,000 yen;profit margin: 17%)19

Establish section dedicated to M&A
Establish department dedicated to M&A and alliances in TOKAI Holdings
The new department will play a leading role in screening investments,
executing acquisitions/investments, and progressing subsequent businessintegration
TOKAI Holdings“Group M&A Promotion Office” responsible for investment in M&A/alliances and postmerger integration tPMI)

Investment target

Investment target

Investment target

Investment target

・・・・・

ＴＯＫＡＩ
Cable Network

TOKAI
Gas

ＴＯＫＡＩ
Communications

ＴＯＫＡＩ

TOKAI Holdings supports business collaboration between establishedbusinesses and M&A targets/alliance partners

20

Discover promising investment targets
Work closely with well-established venture capital firms and buyout
funds to build networks for gathering information on “seeds of growth”
and discovering potential M&A targets
TOKAI Holdings

Cultivate business relationships to gather information on potential alliance partners and M&A candidates

Energy/environmental venture
capital firms

Communications andbroadcasting-relatedcompanies

・・・

Buyout funds

Energy companies

Fintech companies

・・・

Consumer IT
service venture
capital firms
Consumer service startups

Big data service startups

・・・

Enterprise
SaaS startups

New energy trading
companies

New energy development
startups

M&A/alliancecandidateEnterprise IT
service venture
capital firms

・・・

21

Raise cross-selling rate to 20% by FY03/21■ Progress group-wide effort to complete the TLC (Total Life Concierge) concept, i.e., providing a one-stop,
one-contract, one-call-center structure for various services that support customers’ daily lives◆Engage in more cross-selling to customer base of 2.56 million customers to raise the cross-selling rate to 20% by
FY03/21 and expand operating profit base by 1.7 billion yen by measures to prevent service cancellation andincrease ARPU per customer◆Support group sales capability by upgrading infrastructure for cross-selling, e.g., utilizing customer information andimproving customer service by shift to omni-channel/single call center structure and integrated billing system◆Increase presence of TLC concept by offering TLC loyalty points that offer bigger savings on more transactions andstrengthen measures that offer various advantages to being a customer of the TOKAI Group

Realize ＴＬＣ concept
LP gasElectric power
Housing

Insurance

B

BridalNursingcare

Total Life Concierge (TLC)
Provide all-round, specific support to make customers’ lives comfortable and convenient
Security

City gas

Aqua
Internet

CATV
Budget mobile services

Customer base of ２.５６ million customers

221) LP gas businessＬＰ gas business is mature and the household/commercial markets are shrinking(by an estimated 7.1% in next four years)(Source: Materials from METI Working Group on oil market
trends research, April 3, 2017)
Household unit consumption is trending down
(by around 2% per year amid population decline and shift toward energy-saving equipment and lifestyles)<Main medium-term goals>

Increase customers by
Increase customers numbers by 30% (including
30% to 760,000
new areas) to 760,000 over four years
to expand market share Target increase in customers in new areas from
Top market share in Shizuoka Prefecture (22.5%)
Ninefold increase in 8,000 in FY16 to 70,000 in FY20
with 180,000 customers
800
LPG customers (thousands)
customers inEstablished market share (8.1%) in Kanto
600
region with 410,000 customers
new areas<Position in industry>LP gas company with third-largest
customer base in Japan(Source: LP Gas Annual Report 2017, Sekiyu Kagaku Shinbun Sha)

400
200

Move into new supply areas0
tadd five new business bases for a total of 10)
Actively engage in M&A in new and established areas tostabilize customer base further

590 610 650 690

760

H28年度
FY H31年度
FY
FY H29年度
FY H30年度
FY H32年度

16

17

18

19

20

Expand supply area (mainly in areas where other group businesses are established) to attract new customers

232) City gas business
Gas system reforms: Liberalization of gas retailing starts
Competition initially centered in major cities where major EPCOs will enter the market
Like LP gas, household unit consumption is turning down

<Main medium-term goals><Overview of supply area>

Most advanced in terms of
TLC strategy;
Yaizu and Fujieda, Shizuoka Prefecture
working toward further
・Number of users: 54,000
progress.
・Sales volume: 140 million m3(Large-lot users: 120 million m3; small-lot users: 20 million m3) Target fivefold growth ofrenovation
business in four years

Strengthen price competitiveness bystreamlining, etc., to secure profits. Target 230
million yen profit growth in gas business,
including M&A effects
Reform business boasts top-class sales per
customer of 30,000 yen. Target fivefold operating
profit increase in four years from 50 million yen
to 250 million yen

300

Reform business operating profit (millions of yen)

200
100

Aggressively pursue area expansion by M&A
and alliances with industry peers

50 60

0

130 180

250

H28年度 H29年度 H30年度 H31年度 H32年度

FY
16

FY
17

FY
18

FY
19

FY
20

Expand supply area by M&A and target synergies through alliances with industry peers. Invest in gas
pipeline extensions to attract new industrial demand.

243) Broadband business
Growth of broadband market to slow, but continue modest uptrend(Source: MM Research Institute forecast as of(+2.3% per year from current 29.19 million households)
December 31, 2016)
Outlook for strong growth of MVNO market on easing of SIM unlock(from 8.8 million to 19.5 million contracts in four years) (Source: Seed Planning forecast as of December 2016)
New players including mobile carriers enter broadband market on
start of NTT’s wholesale sales of fiber-optic networks
Major mobile carriers under pressure to compete with fast-growing MVNO companies<Main medium-term goals><Position in industry>
ISP company ranking fourthin Japan in terms of sales

Promote Hikari
Collaboration
Increase ARPU/AMPU(Source: Article in Nikkei Marketing Journal, November 5, 2014)
Top market share (23.1%) in Shizuoka Prefecture by providing own MVNO
with 240,000 customers
service and packages
Kanto area market share of 4.1% with 500,000
with new services
customers

Target 85.1% of FTTH customers switching to
Hikari Collaboration by end-FY20. This shouldraise ARPU per customer to 3,048 yen permonth (+20.9% from end-FY16)
Further increase sales by adding 140,000
MVNO（LIBMO）customers by end-FY20(Source: MIC Information and Communications Statistics Database
as of December 31, 2016)

ARPU of FTTH service (yen/customer per month)
3000
2800
2600

Add more services with value added
Improve own-brand services

2400
2200

2,521

2,671

2,813

2,938 3,048

2000
H28年度 H29年度 H30年度 H31年度 H32年度

FY
16

FY
17

FY
18

FY
19

FY
20

Increase ARPU by encouraging long-term broadband use in packages with LIBMO and TOKAI SAFE
(security service) and developing new, own-brand IT-related services such as IT insurance

254) CATV business
Demand for 4K broadcasts likely to grow by 2020 with government policy support.
CATV has dominant share of pay TV market (subscriber households), far exceeding satellite and IPTVCATV companies at advantage in terms of viewing 4K broadcasts, which will likely spread in the next
few years
Differentiating service from major telecommunication companies remains a challenge<Main medium-term goals><Position in industry>
Third-largest urban
CATV sales in Japan(Source: Article in Nikkei Marketing Journal, November 9, 2016

Group broadcasting customers: 510,000(48% of home path)
Group communications customers: 230,000

Deploy services
that maximize own
fiber-optic network for
net increase of 90,000
broadcasting andcommunications
customers

Target close to 100% access to FTTH inservice area (versus 25.7% in FY16)
Target net increases of broadcasting andcommunications customers of 30,000 and
60,000, respectively, in four years
Access to FTTH (%)

100

50
Expand broadcasting customer base by

71 79 86

92 97

grasping ideal opportunity of growing
demand for 4K broadcasts

0

H28年度
FY H30年度
FY H29年度
FY H31年度
FY H32年度
FY

16

17

18

19

Expand customer base by launching competitively priced services that combine 4K broadcast with internet.
Improve convenience by broadcasting disaster-prevention and other local information in partnership withgovernment. Also work with municipalities to supply FTTH to areas without high-speed broadband
infrastructure and build infrastructure for regional BWA, etc.

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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
2-6-8 Tokiwa-cho, Aoi-ku, Shizuoka 420-0034, Japan
Phone: +81-(0)54 275-0007
Fax: +81-(0)54-275-1110
http://tokaiholdings.co.jp/
e-mail： overseas_IR@tokaigroup.co.jp