February 2, 2023
For Immediate Release
Company Name:TOKAI Holdings Corporation
Representative Name: Representative Director, President and CEO
Katsuo Oguri(Code No. 3167, TSE Prime Market)

Financial Results for the First Nine Months of the Fiscal Year Ending March 31, 2023
– Net sales for the first nine months grew for the second consecutive fiscal year to reach a newrecord high –TOKAI Holdings Corporation (hereinafter, “the Company”) today announced its financial results for the firstnine 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 worked to increase market share in existing areas, to expand into new sales areas in Japan andto launch overseas operations. Taking the approach of selection and concentration with a focus on profitability,
we boosted the number of customers.
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 nine 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 3,258,000 continuing customers as of December 31, 2022. This continuing customer exceeded thecount at the beginning of the fiscal year (3,194,000) by 63,996 (versus an increase of 43,292 in the same
period of the previous fiscal year).
With net increase of 25,943 (LP and city) gas customers (29,533 in the same period of the previous fiscal
year), 23,267 CATV customers (26,055), 15,697 Hikari Collaboration customers (5,110) and 9,301 LIMBO(MVNO service) customers (1,782), we further expanded our earnings base.

2. Net sales for the first nine months grew for the second consecutive fiscal year to reach a newrecord highFor the third quarter under review, net sales stood at 164.2 billion yen, up 14.8 billion yen or 9.9% year on
year, rising for the second consecutive year to a new record high. This resulted chiefly from sales growthfollowing an increase in energy, CATV and other customers, rises in selling prices linked with energy purchaseprices, and expansion of the stock business for corporate clients in the Information and Communication business.
On the profit front, operating profit stood at 8.5 billion yen, down 0.8 billion yen or 8.5% year on year. This is
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 2.8 billion yen, down 1.8 billion yen or 39.2% year on year.
This is due mainly to impairment losses of goodwill of an equity-method affiliate based in Vietnam and theposting of special investigation expenses as extraordinary losses.
(Millions of yen)
(April 1, 2022 to December 31, 2022)(April 1, 2021 to December 31, 2021)

164,249
8,466
6,705
2,816

149,420
9,248
9,324
4,634

YoY
Change+14,829-782-2,619-1,818

21.52

35.38

-13.86Q3 FY03/23 results Q3 FY03/22 results
Net sales
Operating profit
Ordinary profit
Profit attributable to ownersof parent
EPS (yen)% change
+9.9%
-8.5%
-28.1%-39.2%-39.2%

3. Revisions to full-year financial results forecast
Regarding the consolidated full-year financial results forecast for the fiscal year ending March 31, 2023, thefigures that were announced on May 10, 2022 have been revised as follows, effective February 2, 2023, in lightof recent trends in business performance and other factors.
Looking at the most recent trends in business performance, there has been steady progress in initiatives forincreasing the number of continuing customers with the goal of expanding the earnings base, and the net sales
and operating profit forecasts that were announced on May 10, 2022 are expected to be achieved.
However, the ordinary profit and profit attributable to owners of parent forecasts were revised, reflecting the
goodwill impairment losses of an equity-method affiliate based in Vietnam and the special investigation expenses.
(Millions of yen)

FY03/23 forecast(April 1, 2022 to March 31, 2023)

Net sales
Operating profit
Ordinary profit
Profit attributable toowners of parent
EPS (yen)
Customer count at endof fiscal year

Latestforecast
223,000
14,50012,6006,300

Previous
forecast
223,000
14,50014,3008,300

48.12
3,295,000

63.43
3,295,000

ChangeFY03/22
results(April 1, 2021 toMarch 31, 2022)

YoY
Change% change－－-1,700-2,000210,691
15,794
15,907
8,969+12,309-1,294-3,307-2,669+5.8%-8.2%-20.8%-29.8%-15.31－

68.49-20.37+101,000-29.7%+3.2%

3,194,000

To date, the dividend forecasts for the fiscal year ending March 31, 2023 remain unchanged from thoseannounced on May 10, 2022.
FY03/23
FY03/23
FY03/22(forecast)Interim (end of Q2)
16.00 yen
15.00 yen
Year-end
16.00 yen
17.00 yen
Annual dividend per share
32.00 yen
32.00 yen
For the Company’s earnings announcement for the first nine months of the fiscal year ending March 31, 2023 and its notice ofposting of extraordinary losses and revisions to the full-year financial results forecast, please see the following URL:
https://www.tokaiholdings.co.jp/english/ir/library/earnings.html

Contact: Yoshihiro Taniguchi
Public Relations and Investor Relations Office
TEL: +81-(0)3-5404-2891

Financial Results for the First Nine Monthsof the Fiscal Year Ending March 31, 2023
TOKAI Holdings Corporation(Code No. 3167)
February 2, 2023

Expansion of earnings base proceeds◎ The number of continuing customers as of December 31, 2022 stood at 3,258 thousand, an increase of 64 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)
32 (Thousand)

CATV

+30

865
32

+26

28

+24

LIBMO
76

+34

12

+26

22
825

811

24

Hikari Collaboration+23 1,280
1,255

71

+11

10
1,260

7370

+5

362

12

n

16

745
-18

4

h

737

-30
1,140

-38

0

665
-48
FY2020_3Q(Two years
earlier)

FY2021_3Q
FY2022_3Q(Previous fiscal (Current fiscal
year)
year)

Number at end of period

Net increase* Rounded to the nearest thousand

-8
330

1,160

1,188

335

Number at end of period

Net increase

FY2020_3Q(Two years
earlier)

51

342
-13
320

1,120
-40
FY2020_3Q FY2021_3Q FY2022_3Q(Two years (Previous fiscal (Current fiscal
year)
year)
earlier)

56

340

1,180
-20

1,224

66

61

-10
1,200

-8

-28
705

65

350
-3

1,220

774

+2

1,240
0

785
2

8

+4

360
2

20

12

+9

+16

1,300

FY2021_3Q FY2022_3Q(Previous (Current fiscal
fiscal year)
year)

Number at end of period

52

55
46

-18310Net increase41
FY2022_3Q
FY2021_3Q
FY2020_3Q(Two years (Previous fiscal (Current fiscal
year)
year)
earlier)Number at end of period1

Net increase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. The result chiefly reflects an increase incustomers, rises in selling prices linked with energy purchase prices, and expansion of the Information andCommunication business for corporate clients.
◎ Operating profit fell 0.8 billion yen year on year, primarily because of soaring LP gas purchase prices and anincrease in 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 1.8 billion yen year on year, due mainly to posting of impairment
losses of goodwill of an equity-method affiliate and special investigation expenses. (Net sales and profit: million yen; EPS: yen)YoY

Q2 FY03/23 results Q2 FY03/22 results(April 1, 2022 –December 31, 2022)(April 1, 2022 –December 31, 2022)

Change% change

Net sales

164,249

149,420+14,829+9.9%

Operating profit

8,466

9,248

-782

-8.5%

Ordinary profit

6,705

9,324

-2,619-28.1%

Profit attributable toowners of parent

2,816

4,634

-1,818-39.2%EPS (yen)

21.52

35.38

-13.86-39.2%
2

Consolidated full-year
financial results forecast (revised)◎ Forecast values for net sales and operating profit, which were announced on May 10, 2022, are expected to beachieved.
◎ The forecast amount of ordinary profit was revised to 12.6 billion yen and that of profit attributable to owners ofparent was revised to 6.3 billion yen, reflecting the posting of impairment losses of goodwill of an equity-method
affiliate and special investigation expenses.
◎ The number of customers of the overall Group has remained unchanged from the initial forecast because activities
to gain customers are making steady progress.

(Millions of yen)

Revised forecast
for the current
fiscal year
Forecast for thecurrent fiscal year
(FY2022)

Results for theprevious fiscal
year(FY2021)

YoY
Initial forecast(FY2022)
ChangeCompared with initial forecast% change(%)

Change% change(%)

Net sales

223,000

210,691

223,000 +12,309

+5.8

－

－

Operating profit

14,50015,794

14,500-1,294-8.2－－

Ordinary profit

12,60015,907

14,300-3,307-20.8-1,700-11.9

Profit attributable toowners of parent

6,300

8,969

8,300

-2,669-29.8-2,000-24.1

EPS (yen)

48.12

68.49

63.43

-20.37-29.7-15.31-24.1

3,295,000

3,194,000

3,295,000 +101,000

+3.2

－

－

Customer count at
end of fiscal year3

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.

66.5%

50

70.0%

40

54.7%

52.9%

45

40.2%

46.7%

47.2%

43.4%

44.5%

44.6%

35.1%

30

35

28

28

28

28

30

yen/shareyen/shareyen/shareyen/share

25

6

20

15

10

14

12

12

12

yen/shareyen/shareyen/share

6

6

6

8

6

6

6

6

yen/share

5

14

14

46.7%
50.0%

32

32

yen/share yen/share

30.0%

yen/share

16

14

17

16

11

10.0%

-10.0%

14

11

14

14

14

15

16

0

-30.0%-50.0%FY2012FY2013

FY2014

Interim dividend

FY2015FY2016FY2017Year-end dividend

FY2018FY2019FY2020Commemorative dividend

FY2021

FY2022(forecast)

Payout ratio

45

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) EBIDA by business(1) Consolidated results(Millions of yen)

Q3 FY03/19
Results

Q3 FY03/20
Results

Q3 FY03/21
Results

Q3 FY03/22
Results

Q3 FY03/23
Results

137,943

141,557

139,792

149,420

164,249

Operating profit

7,038

9,278

9,901

9,248

8,466

Recurring profit

7,247

9,478

9,929

9,324

6,705

Net income

3,966

5,103

5,936

4,634

2,816

EPS (Yen)

30.29

38.97

45.33

35.38

21.52

Sales

7

(2) Sales by segment(Millions of yen)

Q3 FY03/19
Results

Q3 FY03/20
Results

Q3 FY03/21
Results

Q3 FY03/22
Results

Q3 FY03/23
Results

Energy54,67555,19153,43758,71771,069

Information andCommunications

37,95938,83437,831

38,206

39,662

CATV

22,82923,43324,99424,26525,510

Building equipment
real estate

13,846

14,91914,81519,025

18,840

Aqua

5,279

5,603

5,778

5,811

5,720

Others

3,352

3,575

2,934

3,395

3,446

137,943

141,557

139,792

149,420

164,249

Total

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

Q3 FY03/19
Results

Q3 FY03/20
Results

Q3 FY03/21
Results

Q3 FY03/22
Results

Q3 FY03/23
Results

Energy

2,954

3,964

5,034

4,317

3,552

Information andCommunications

2,595

3,366

3,081

3,492

3,563

CATV

3,568

3,790

4,102

4,539

4,706

building equipment
real estate

915

1,242

1,094

1,126

1,195

Aqua

444

597

578

287

394

Others-3,442-3,682-3,988-4,514△4,947

7,038

9,278

9,901

9,248

8,466

Total

*Prior to elimination of indirect expenses

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

Q3 FY03/19
Results

Q3 FY03/20
Results

Q3 FY03/21
Results

Q3 FY03/22
Results

Q3 FY03/23
Results

Total assets

167,035

168,697

172,946

181,450

192,091

Total liabilities

107,404

102,972

102,104

105,652

113,325

Total net assets

59,63165,72470,84175,79778,765

Balance ofinterest-bearing
debt

58,481

52,61551,34449,06053,173

EBITDA

18,266

20,76921,76821,202

20,547

Equity ratio

35.0 %

38.2 %

40.1 %

40.9 %

39.9 %
10(5) Consolidated cash flows(Millions of yen)

Q3 FY03/19
Results

Q3 FY03/20
Results

Q3 FY03/21
Results

Q3 FY03/22
Results

Q3 FY03/23
Results

Operating cash
flow

9,813

15,476

19,402

12,305

10,638Investment
cash flow-9,615-9,683-14,672-11,667△10,852

Free cash flow

197

5,793

4,730

638

△213

Financing cash
flow

762

-4,779-3,863

-945

594

11

(6) Group customer count(Thousands of customers)

Q3 FY03/19
Results

Q3 FY03/20
Results

Q3 FY03/21
Results

Q3 FY03/22
Results

Q3 FY03/23
Results

674

703

737

774

811

Previous ISP
model, etc.

430

396

375

382

411

Hikari Collaboration

328

324

335

342

362

LIBMO

39
797

45
766

52
763

55
779

65
838

CATV

1,055

1,088

1,188

1,224

1,255

Aqua
Mobile

157
220

160
214

162
209

166
195

166
182

Security

17

16

16

16

16

2,897

2,933

3,063

3,142

3,258

Information andCommunications

Gas (LP and city gas)

Subtotal

Total*Rounded to the nearest thousand. Duplicate communication services for ISP and CATV carrier plans are excluded from the total value.
*Information communication (traditional ISP, etc.) includes contracts for ISP additional services (PC visit support service) from 3Q 2021, and contracts forthe same (PC remote support service) from 3Q 2022.

12(7) EBIDA by business(Millions of yen)

Q3 FY03/18
Results

Energy6,512

Q3 FY03/19
Results

7,563

Q3 FY03/20
Results

Q3 FY03/21
Results

Q3 FY03/22
Results

8,512

7,923

7,298

1,028

1,198

817

4,504

4,715

5,182

For
Information
consumersandCommunicat
For
corporations
ions

4,651

5,634

CATV

7,891

8,055

8,599

8,812

9,099

Construction, Equipment,
and Real Estate

1,426

1,773

1,677

1,855

1,970

844

1,050

1,051

807

899

18,266

20,76921,76821,202

20,547Aqua
EBITDA (Total)* EBITDA = operating profit + depreciation (operating profit is before allocation of indirect costs, etc.)* Information and communications have been divided into those for consumers and those for corporations from the previous term. Before that, the figures for the entire
information and communication are displayed.

13

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.
Investor Relations Office
TOKAI Holdings Corporation
Hamarikyu Inter City 11th floor, 1-9-1, Kaigan, Minato-ku, Tokyo 105-0022, Japan
Phone: +81-(0)3 5404-2891
Fax: +81-(0)3-5404-2786
https://www.tokaiholdings.co.jp/english/
e-mail： overseas_IR@tokaigroup.co.jp