July 30, 2020TOKAI Holdings Corporation
Katsuhiko Tokita, President & CEO(Securities Code: 3167, Tokyo Stock Exchange First Section)

Financial Results for the First Three Months of the Fiscal Year Ending
March 31, 2021
We Recorded First-Quarter Profit Growth for the Third Straight Period, Achieved Record-High Quarterly
Profits for the Second Consecutive Year, and Aim to Continue Securing Growth

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

1. Net first-quarter increase in customer count nearly doubled year on year, as theCompany 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 a
total of 100 billion yen in M&A over the course of four years and forming business alliances. TheCompany also works to address an ongoing business objective by acquiring additional continuing
customers, securing multiple contracts based on the Total Life Concierge (TLC) concept*1, andexpanding 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 three months ended June 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 also modified our operating activities to mitigate impact from the COVID-19 pandemic while
acquiring increased demand related to teleworking. As a result, the Company recorded 3,012,000
continuing customers as of June 30, 2020. This continuing customer count exceeded the countat the beginning of the year (3,003,000) by 9,224 (versus an increase of 4,900 in the same periodof the previous fiscal year).
With net increases of 5,165 (LP and city) gas customers, 6,900 CATV customers, and 3,491
Hikari Collaboration customers, we further expanded our earnings base.

2. For the third consecutive period, all profit categories increased in the first quarterand reached quarterly record highs for the second consecutive year
In the three months ended June 30, 2020, the Company recorded sales of 45,113 million yen (-1.5%year on year). While sales grew thanks to an increase in household LP gas sales volume, expansionof recurring-revenue businesses in the Information and Communications business for corporateclients, 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 associated with a drop inprocurement prices (no impact on profits).
On the profit front, operating profit rose to 3,783 million yen, increasing 551 million yen, or 17.1%
year on year, and each profit line reached a quarterly record high for the second consecutiveyear. This reflected an increase in the number of monthly fee-paying customers that accompanied
higher customer counts in the LP gas, CATV, and Aqua businesses, profit growth in the Information
and Communications business for corporate clients, and profit margin improvement in the LP gasbusiness.
(Millions of yen)
Q1 FY03/21 results Q1 FY03/20 results(April 1, 2020 toJune 30, 2020)(April 1, 2019 toJune 30, 2019)

YoY
Change% change

Sales45,11345,804-691-1.5%

Operating profit

3,783

3,231+551+17.1%

Recurring profit

3,830

3,351+478+14.3%

Net income

2,445

2,239+206+9.2%

EPS (yen)

18.68

17.10+1.58+9.2%

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 top-line
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.
During the fiscal year ending March 31, 2021, the Company will conduct 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

FY03/19

Interim (end of Q2)

14.00

14.00

14.00

Year-end

14.00

14.00

14.00

Annual dividend total

28.00

28.00

28.00

Consolidated payout ratio

43.3%

44.5%

47.2%

For details, please see the attached materials, entitled “Financial Results for the First Three Monthsof the Fiscal Year Ending March 31, 2021.”
Further, for the Company’s earnings announcement for the first three 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 First Quarter of theFiscal Year Ending March 31, 2021
TOKAI Holdings Corporation(Code: 3167)
July 30, 2020

Steady growth of customer base in core businesses◎ Continuing customer count reached 3,012,000 at the end of Q1, up 9,000 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

CATV760
86(Thousands of customers)+55718+7+77407

Hikari Collaboration+71,161

7206

3

1

1,000

1,039

Q1 FY03/20

Q1 FY03/21

328
327

325

327
324-15950

323

900-206200
Q1 FY03/19328

326

1,069

640
10-2326660
2664

01,050-103687

Q1 FY03/19

Q1 FY03/20

Q1 FY03/21322
Q1 FY03/19

Q1 FY03/20

Q1 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.

330329

-5
1,100

4680

2+3

1,150

5700+3+4

1,200

4+3

1,250 5

1Profits grew in Q1 for the third consecutive period and reachedquarterly record highs for the second consecutive year
◎ Sales fell due to a decrease in gas selling prices associated with a drop in procurement prices, despitea higher customer count and expansion of the Information and Communications business forcorporate clients.
◎ Operating profit rose 551 million yen (+17.1% YoY), supported by an increase in the number ofmonthly fee-paying customers that accompanied a higher customer count, profit growth in theInformation and Communications business for corporate clients, and profit margin improvement in theLP gas business.
◎ For the third consecutive period, all profit categories increased in Q1 and reached quarterly recordhighs for the second consecutive year.
(Millions of yen)YoY

Q1 FY03/21 results Q1 FY03/20 results(April 1, 2020–June 30, 2020)(April 1, 2019–June 30, 2019)

Sales

45,11345,804-691-1.5%

Operating profit

3,783

3,231+551+17.1%

Recurring profit

3,830

3,351+478+14.3%Net income

2,445

2,239+206+9.2%

EPS (yen)

18.68

17.10+1.58+9.2%

Change% change

2
Maintain growth trend with higher sales and profits◎ We project continued growth, with sales rising for the fourth consecutive year and profits reachingrecord highs for the third consecutive year.
◎ In FY03/21, we intend to wrap up our medium-term management plan, Innovation Plan 2020 “JUMP,”
and build foundation for growth in the next plan period. We strive to continue focusing on expanding
customer base for longer-term growth.
◎ Priority themes are further advancement of M&A, ABCIR+S implementation, and TLC enrichment.
(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 profit15,000

14,224+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 share

3020

1028 yen28 yen
28 yen pershareper shareper shareper share

1414141414141414

FY2017FY2018FY2019FY2020（Forecast）

6251528 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)

Q1 FY2016
Results

Q1 FY2017
Results

Q1 FY2018
Results

Q1 FY2019
Results

Q1 FY2020
Results

41,61842,531

44,55345,804

45,113Operating profit

2,870

2,152

2,390

3,231

3,783

Recurring profit

2,900

2,204

2,487

3,351

3,830

Quarterly net
income

1,766

1,182

1,432

2,239

2,445

EPS (Yen)

15.60

9.33

10.94

17.10

18.68

Sales

7

(2) Sales by segment(Millions of yen)

Q1 FY2016
Results

Q1 FY2017
Results

Q1 FY2018
Results

Q1 FY2019
Results

Q1 FY2020
Results

Energy17,47917,39217,608

18,577

17,634

Information andCommunications

11,78012,447

12,513

12,795

12,650

CATV

6,241

6,406

7,511

7,738

8,226

Construction, Equipment,and Real Estate

3,414

3,617

4,166

3,777

3,819

Aqua

1,424

1,456

1,653

1,798

1,896

Others

1,277

1,211

1,100

1,116

885

41,61842,531

44,55345,804

45,113Total* From the current fiscal year, the names of the reporting segments, which were previously “Gas and oil” and “Building and real estate”, have been changed to “Energy” and“Construction, Equipment and Real Estate”. This change is a change in segment name and has no effect on sales by segment.

(3) Operating profit by segment

8(Millions of yen)

Q1 FY2016
Results

Q1 FY2017
Results

Q1 FY2018
Results

Q1 FY2019
Results

Q1 FY2020
Results

2,197

1,324

1,182

1,489

1,972

Information andCommunications

913

774

724

1,217

1,110

CATV

717

875

1,194

1,286

1,367

Construction, Equipment,
and Real Estate

81

90

213

213

233

Aqua

1956

96

169

271

-1,060-969-1,022-1,145-1,171

2,870

2,152

2,390

3,231

3,783

EnergyOthers, adjustments
Total*Prior to elimination of indirect expenses* From the current fiscal year, the names of the reporting segments, which were previously “Gas and oil” and “Building and real estate”, have been changed to “Energy” and“Construction, Equipment and Real Estate”. This change is a change in segment name and has no effect on sales by segment.

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

Q1 FY2016
Results

Q1 FY2017
Results

Q1 FY2018
Results

Q1 FY2019
Results

Q1 FY2020
Results

Total assets

155,595

157,498

162,694

163,992

168,253

Total liabilities113,074

101,987

101,736

99,884

100,025

Total net assets

42,521

55,511

60,957

64,107

68,228

Balance of interestbearing debt

67,061

54,96652,60450,207

48,127

EBITDA

6,760

5,948

6,032

7,024

7,724

Equity ratio

26.8 %

34.7 %

36.8 %

38.3 %

39.7 %
10(5) Consolidated cash flows(Millions of yen)

Q1 FY2016
Results

Q1 FY2017
Results

Q1 FY2018
Results

Q1 FY2019
Results

Q1 FY2020
Results

Operating cash flow

8,242

4,851

4,348

6,245

10,837

Investment cashflow-2,454-2,870-3,484-3,227-7,579

Free cash flow

5,787

1,981

864

3,017

3,257

Financing cash flow

-6,216-2,262-1,159-3,210-3,02211

(6) Group customer count(Millions of yen)

Q1 FY2016
Results

Q1 FY2017
Results

Q1 FY2018
Results

Q1 FY2019
Results

Q1 FY2020
Results

634

645

664

687

718

Previous ISP
model, etc.

595

507

451

411

383

HikariCollaboration

251

310

327

326

328

LIBMO

－

8

32

42

50

Mobile

235

232

225

214

211

1,081

1,057

1,035

992

971

CATV

716

738

1,039

1,069

1,161

Aqua

134

138

151

157

159

Security

1717

17

17

16

2,557

2,570

2,883

2,907

3,012
12Gas (LP and City Gas)
Information andCommunications

Subtotal

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 arebased on information currently available to the company, and include potential risks anduncertainties. 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 thesematerials.

Please contact us with any questions regarding these materials.
Investor Relations Office
TOKAI Holdings Corporation
Hamarikyu InterCity 11th floor, Kaigan 1-9-2, 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