January 27, 2022
To whom it may concern
TOKAI Holdings Corporation
Katsuhiko Tokita, President & CEO(Code No. 3167 Tokyo Stock Exchange First Section)

Financial Results for the First Nine Months of the
Fiscal Year Ending March 31, 2022
Started to Implement a New Medium-Term Management Plan,
Innovation Plan 2024 “Design the Future Life”
TOKAI Holdings Corporation (hereinafter, “the Company”) today announced its financial results for the first ninemonths of the fiscal year ending March 31, 2022.

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 fourth Medium-Term Management Plan, Innovation Plan 2024 “Design the FutureLife” (“IP24”*1) in May last year. The plan covers a period from this fiscal year to the fiscal year ending March 31,
2025.
A key strategy in IP24 is “LNG strategy.” The Company will expand its business areas at the Local level(expansion of share in existing areas), at the National level (expansion of new business areas in Japan), and at the
Global level (business development overseas) and will achieve growth in the number of customers throughselection and concentration, focusing on profitability.
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 3.20 million customers (a net annual increaseof 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 was thorough intaking measures to prevent COVID-19 infections. Meanwhile, the Company took proactive steps to attract
customers and recorded 3,142 thousand continuing customers as of December 31, 2021. This continuing
customer number exceeded the count at the beginning of the fiscal year (3,099 thousand) by 43,292 (versus
an increase of 59,804 in the same period of the previous fiscal year, including M&A-related 8,253).
With net increases of 29,533 (LP and city) gas customers (24,416 in the same period of the previous fiscal
year), 26,055 CATV customers (34,395, including M&A-related 8,253 customers), and 3,391 Aqua (bottled
drinking water delivery) customers (1,015), we further expanded our earnings base.

2. Sales increased for the first time in two periods and hit a record high.
In the nine months ended December 31, 2021, the Company recorded sales of 149.4 billion yen (up 9.6 billion
yen or 6.9% year on year), the first increase in two periods and a record high. Sales increased chiefly due toincreases in the numbers of energy customers and CATV customers, expansion of recurring-revenue businesses in
the Information and Communications business for corporate clients, and the effect of M&A in the Construction,
Equipment, and Real Estate business.
On the profit front, operating profit fell to 9.2 billion yen (down 0.7 billion yen or 6.6% year on year). While anincrease in profit thanks to an increase in the number of monthly fee-paying customers that accompanied a higher
customer account and an increase in profit in the Information and Communications business were recorded, thegrowth was more than offset by an increase in expenses for gaining customers, reflecting more LP gas and Aqua
customers gained than a year ago, among other factors.
Quarterly net income attributable to owners of the parent was 4.6 billion yen, down 1.3 billion yen, or 21.9% year
on year, due mainly to the recording of a temporary extraordinary loss.
Net sales, operating profit, and recurring profit each exceeded the Company’s internal plan, and quarterly net
income attributable to owners of the parent also exceeded the internal plan, despite the aforementioned temporary
extraordinary loss.

(Millions of yen)

Net sales
Operating profit
Recurring profit
Net income
EPS (yen)

Q3 FY03/21 results
Q3 FY03/22 results(April 1, 2021 to(April 1, 2020 to
December 31, 2021) December 31, 2020)
149,420
139,792
9,248
9,901
9,324
9,929
4,634
5,936
35.38
45.33

YoY
Change% change+9,627-653-605-1,301
-9.95

+6.9%
-6.6%
-6.1%
-21.9%-21.9%

3. Started to implement a new Medium-Term Management Plan, Innovation Plan 2024
“Design the Future Life”
With its Corporate Philosophy “For customers’ livelihood along with the region, together with the earth, we willcontinue 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 “Life Design Group” that designs and provides the new lifestyles of the future, ready to take on new
challenges described in the new Medium-Term Management Plan “IP24.”
The Group has made steady progress to make the fiscal year ending March 31, 2022 a year where the Group will
lay foundations for achieving the goals described in the five key messages in IP24: (i) Implementation of LNG
strategy, (ii) Evolution of TLC*2 concept, (iii) Stepping up of DX strategy, (iv) Optimal allocation of management
resources, and (v) Strengthening of SDG initiatives.
The earnings and dividend forecasts for the fiscal year ending March 31, 2022 remain unchanged.
(Millions of yen)
FY03/22 forecast
FY03/21 results
YoY(April 1, 2021 to(April 1, 2020 toChange% change
March 31, 2022)
March 31, 2021)
Net sales
207,000
196,726+10,274+5.2%
Operating profit
15,24015,226+14+0.1%
Recurring profit
15,32015,312+8+0.1%
Net income
8,830
8,815
+14
+0.2%
EPS (yen)
67.42
67.32
+0.10
+0.2%
Customer count at end
3,195,000
3,099,000+97,000+3.1%
of fiscal year
FY03/22(forecast)Interim (end of Q2)
Year-end
Annual dividend per share

FY03/2215.00 yen

15.00 yen
30.00 yen

FY03/2114.00 yen
16.00 yen
30.00 yen

For details, please see the attached materials, entitled “Financial Results for the First Nine Months of the Fiscal Year Ending March
31, 2022.”
For the Company’s earnings announcement for the first nine months of the fiscal year ending March 31, 2022, please see thefollowing URL: https://www.tokaiholdings.co.jp/ir/library/earnings.html*1 For the details of the fourth Medium-Term Management Plan “IP24,” please see the following URL:
https://www.tokaiholdings.co.jp/ir/management/manageplan.html*2 TLC (Total Life Concierge) concept: The Group will provide a comprehensive range of carefully tailored services to help
customers live more comfortable lives and aim to improve customer satisfaction.

Contact: Yoshihiro Taniguchi
Public Relations and Investor Relations Office
TEL: +81-(0)3-5404-2891
Email: overseas_IR@tokaigroup.co.jp

Financial Results for the First Nine Monthsof the Fiscal Year Ending March 31, 2022
TOKAI Holdings Corporation(Code No. 3167)
January 27, 2022

Steady Expansion of Customer Base in Core Businesses◎ The number of continuing customers as of December 31, 2021 stood at 3,142 thousand, an increaseof 43 thousand from 3,099 thousand at the beginning of the fiscal year.
◎ We further expanded our earnings base in the gas business, the main business, CATV business andAqua business.
35

Gas (LP and city)

CATV

+30

(Thousand)
30

30

+24

25

20

83040

774

+19

Aqua
+4

+34
+26

78020

+26

4
1,295

1,224

1,245

+1

730 0

1,145
-6

-10

1,095

15

171
169

166

167
165
163
161

10

5

+3

-1
1,195

10

173

1,188

737

159
1,045
-11

680
-20

160

1,088

703

FY2019_3Q(Two years earlier)

FY2020_3Q(Previous fiscal year)

Number at end of fiscal year

FY2021_3Q(Current fiscal year)

Net increase* Rounded to the nearest thousand* The net increases include increases through M&A.

157

995

-30

0

162

630
-40
FY2019_3Q(Two years earlier)

FY2020_3Q
FY2021_3Q(Previous fiscal year) (Current fiscal year)

Number at end of fiscal year

155

945
-16

Net increase153
FY2019_3Q(Two years earlier)

FY2020_3Q(Previous fiscal year)

Number at end of fiscal year

FY2021_3Q(Current fiscal year)

Net increase

1

Net sales hit a record high.
◎ Net sales hit a record high chiefly due to an increase in the number of customers, expansion in the
Information and Communications business for corporate clients, and the effect of M&A in theConstruction, Equipment, and Real Estate business.
◎ Operating profit fell 700 million yen year on year, chiefly reflecting an increase in expenses to acquire
customers, albeit partially offset by growth in profit attributable to an increase in the number of monthly
fee-paying customers accompanying an increase in the number of customer accounts, as well as by arise in profit in the Information and Communications business for corporate clients.
◎ Net income decreased 1,300 million yen year on year, chiefly due to the recording of a temporary
extraordinary loss.
(Net sales and profit: million yen; EPS: yen)YoY

Q3 FY03/22
results

Q3 FY03/21
results(April 1, 2021
to December 31, 2021)(April 1, 2020
to December 31, 2020)

Net sales

149,420

139,792+9,627+6.9%

Operating profit

9,248

9,901

-653

-6.6%

Recurring profit

9,324

9,929

-605

-6.1%

Net income

4,634

5,936

-1,301-21.9%

EPS

35.38

45.33

-9.95

-21.9%

Change% change2

Consolidated full-year financial results forecast◎ The Group has made steady progress to make the fiscal year ending March 31, 2022 a year in which
the Group will lay the foundations for achieving the goals described in the five key messages in theMedium-Term Management Plan IP24: (i) Implementation of LNG strategy, (ii) Evolution of TLC
concept, (iii) Stepping up of DX strategy, (iv) Optimal allocation of management resources, and (v)Strengthening of SDG initiatives.
◎ The earnings forecast for the fiscal year ending March 31, 2022 (announced on May 11, 2021)
remains unchanged.
(Millions of yen)

FY03/22
forecast

FY03/21
results(April 1, 2021
to March 31, 2022)(April 1, 2020
to March 31, 2021)

YoY
Change% change

Net sales

207,000

196,726+10,274+5.2%

Operating profit

15,24015,226+14+0.1%

Recurring profit

15,32015,312+8+0.1%

Net income

8,830

8,815

+14

+0.2%

EPS

67.42

67.32

+0.10

+0.2%

3,195,000

3,099,000+97,000+3.1%

Customer count at
end of fiscal year3

Dividend forecast◎ Plan to pay dividends at a payout ratio of 40% to 50% for FY03/22. The annual amount for FY03/21,
which was increased to 30 yen/share, is the baseline.
◎ The dividend forecast (announced on May 11, 2021) remains unchanged.
54.7%

50

45

47.2%

46.7%

52.9%

44.2%

50.0%

44.5%

43.4%

44.6%

44.5%

30 yen/share

30 yen/
share

40.2%

40

35

28 yen/
share

35.1%

30

28 yen/share

28 yen/share

28 yen/
share

40.0%

30.0%

6

25

20

15

10

14

14 yen/share

12 yen/share

12 yen/share

12 yen/share

12 yen/
share

6

6

6

6

8

6

6

6

6

6

FY2011FY2012FY2013

FY2014FY2015

14

14

16

15
20.0%

11
10.0%

11

5

14

14

14

14

15

FY2017FY2018FY2019FY2020

FY2021(forecast)

0

0.0%

Interim dividend

FY2016Year-end dividend

Commemorative dividend

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(1) Consolidated results(Millions of yen)

Q3 FY03/18
Results

Q3 FY03/19
Results

Q3 FY03/20
Results

Q3 FY03/21
Results

Q3 FY03/22
Results

133,336

137,943

141,557

139,792

149,420

Operating profit

6,579

7,038

9,278

9,901

9,248

Recurring profit

6,662

7,247

9,478

9,929

9,324

Net income

3,435

3,966

5,103

5,936

4,634

EPS (Yen)

26.66

30.29

38.97

45.33

35.38

Sales

7

(2) Sales by segment(Millions of yen)

Q3 FY03/18
Results

Q3 FY03/19
Results

Q3 FY03/20
Results

Q3 FY03/21
Results

Q3 FY03/22
Results

Energy53,14554,67555,19153,43758,717

Information andCommunications

37,76037,95938,83437,831

38,206

CATV

20,871

22,82923,43324,99424,265building equipment
real estate

13,491

13,846

14,91914,81519,025

Aqua

4,652

5,279

5,603

5,778

5,811

Others

3,415

3,352

3,575

2,934

3,395

133,336

137,943

141,557

139,792

149,420

Total※From the current fiscal year, the name of the reporting segment has been changed from "gas and oil" to "energy" and from "building and real estate" to "building equipment realestate". The segment name change will not affect sales by segment.

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

Q3 FY03/18
Results

Q3 FY03/19
Results

Q3 FY03/20
Results

Q3 FY03/21
Results

Q3 FY03/22
Results

Energy

3,857

2,954

3,964

5,034

4,317

Information andCommunications

2,410

2,595

3,366

3,081

3,492

CATV

2,758

3,568

3,790

4,102

4,539

building equipment
real estate

681

915

1,242

1,094

1,126

Aqua

221

444

597

578

287

Others-3,350-3,442-3,682-3,988-4,514

6,579

7,038

9,278

9,901

9,248

Total

*Prior to elimination of indirect expenses

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

Q3 FY03/18
Results

Q3 FY03/19
Results

Q3 FY03/20
Results

Q3 FY03/21
Results

Q3 FY03/22
Results

Total assets

165,886

167,035

168,697

172,946

181,450

Total liabilities

106,661

107,404

102,972

102,104

105,652

Total net assets

59,224

59,63165,72470,84175,797

Balance ofinterest-bearing
debt

57,511

58,481

52,61551,34449,060EBITDA

18,052

18,266

20,76921,76821,202Equity ratio

35.0 %

35.0 %

38.2 %

40.1 %

40.9 %
10(5) Consolidated cash flows(Millions of yen)

Q3 FY03/18
Results

Q3 FY03/19
Results

Q3 FY03/20
Results

Q3 FY03/21
Results

Q3 FY03/22
Results

Operating cashflow

12,295

9,813

15,476

19,402

12,305Investment
cash flow-9,655-9,615-9,683-14,672-11,667

Free cash flow

2,640

197

5,793

4,730

638

Financing cashflow

-2,081762-4,779-3,863-945

11

(6) Group customer count(Thousands of customers)

Q3 FY03/18
Results

Q3 FY03/19
Results

Q3 FY03/20
Results

Q3 FY03/21
Results

Q3 FY03/22
Results

653

674

703

737

774

478

430

396

375

382

319
21

328
39

324
45

335
52

342
55

818

797

766

763

779

CATV

1,002

1,055

1,088

1,188

1,224

Aqua

143

157

160

162

166

Mobile

229

220

214

209

195

Security

17

17

16

16

16

2,839

2,897

2,933

3,063

3,142

Gas (LP and city gas)
Information andCommunications

Previous ISP
model, etc.
Hikari Collaboration

LIBMO
Subtotal

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.

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

Q3 FY03/18
Results

Energy7,342

Q3 FY03/19
Results

6,512

Q3 FY03/20
Results

Q3 FY03/21
Results

Q3 FY03/22
Results

7,563

8,512

7,923

1,028

1,198

4,504

4,715

For
Information
consumersandCommunicat
For
corporations
ions

4,352

4,651

5,634

CATV

7,435

7,891

8,055

8,599

8,812

Construction, Equipment,
and Real Estate

1,195

1,426

1,773

1,677

1,855

638

844

1,050

1,051

807

18,052

18,266

20,76921,76821,202Aqua
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