July 31, 2019
TOKAI 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, 2020
On Track for Record Annual Profits for the Second Year in a Row

TOKAI Holdings Corporation (hereinafter, “the Company”) today announced its financial results forthe first three months of the fiscal year ending March 31, 2020 (April 1, 2018 to June 30, 2019).

1. Customer base steadily grew in mainstay businesses
In May 2017, the Company announced its third medium-term management plan Innovation Plan
2020 “JUMP” and growth strategies to attain targets set out in the plan. This entails investing a total of
100 billion yen over the four years in M&A and aggressively pursuing an alliance strategy, in addition
to making progress with existing priorities such as increasing the number of continuing customers,
securing multiple contracts based on the Total Life Concierge (TLC) concept*1, and expanding service
areas. The plan looks to roughly double the customer count, sales, and operating profit in the fiscal
year ending March 31, 2021—the final year of the medium-term plan—versus the fiscal year ended
March 31, 2017.
In the first three months of the fiscal year ending March 31, 2020, the Company implemented anaggressive sales program to increase customer count, which forms its earnings base, with a view toattaining its medium-term targets. As a result, the continuing customer count reached 2,907
thousand as of June 30, 2019, up 5 thousand from 2,902 thousand at the beginning of the fiscalyear. With a net increase of 2,646 gas customers (LP gas and city gas), 6,806 CATV customers,and 1,130 Aqua customers (bottled drinking water delivery), the customer base has steadily
expanded.

2. Quarterly sales and profits hit record highs
In the first three months of the fiscal year ending March 31, 2020, sales increased by 1.3 billion
yen (+2.8% year on year) to 45.8 billion yen, a record high for the first quarter. Sales growth wasunderpinned by an increase in customer count and higher sales in the information andcommunications business for corporate clients.
On the profit front, operating profit rose sharply by 0.8 billion yen (+35.2% year on year) to3.2 billion yen, and each profit item reached a record high. This reflected an increase in thenumber of monthly fee-paying customers associated with higher customer count, as well as profit
growth in the information and communications business for corporate clients.

(Millions of yen)
Q1 FY03/20
Results

Q1 FY03/19
Results(April 1, 2019 toJune 30, 2019)(April 1, 2018 toJune 30, 2018)

YoY%

ChangeSales

45,80444,553+1,250+2.8%

Operating profit

3,231

2,390+841+35.2%

Recurring profit

3,351

2,487+864+34.7%

Net income

2,239

1,432+806+56.3%EPS (Yen)

17.10

10.94

+6.16

+56.3%

3. Targets record high profits for the second year in a row to enter the phase ofearnest profit growth in the fiscal year ending March 31, 2020
In the fiscal year ending March 31, 2020, the Company intends to post record high profits for thesecond year in a row and enter the phase of earnest profit growth. It will work toward achieving
substantial growth planned for the fiscal year ending March 31, 2021, the final year of themedium-term plan.
The Company plans to expand its customer base through continued upfront spending, promote
M&A and expand service areas, and pioneer new overseas markets. It targets a sales increase of 9.2
billion yen (+4.8% year on year) to 200.8 billion yen, operating profit growth of 1.1 billion yen (+8.5%year on year) to 14.2 billion yen, and a net increase of 100 thousand in customer count to three million
customers by March 31, 2020.
Further, the Company will work to cultivate a new customer base and develop new services
through utilizing technological innovation of ABCIR+S*2 designed to accelerate TLC strategies.
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 its full-year consolidated earnings forecast nor dividend
forecast for the fiscal year ending March 31, 2020.
(Millions of yen)
FY03/20 Forecast

FY03/19 Results(April 1, 2019 toMarch 31, 2020)(April 1, 2018 toMarch 31, 2019)

YoY
Change%Sales

200,800

191,600+9,200+4.8%

Operating profit

14,17013,057+1,113+8.5%

Recurring profit

14,04013,259+781+5.9%Net income

8,230

7,772+458+5.9%

EPS (Yen)
Customer count at endof fiscal year (thousand)

62.85

59.36+3.49+5.9%

3,002

2,902+100+3.4%

(Yen)
Dividends

FY03/20 (Forecast)

FY03/19

Interim (End of Q2)

14.00

14.00

Year-end

14.00

14.00

Annual dividend total

28.00

28.00

Consolidated payout ratio

44.6%

47.2%

For details, please see the attached materials, entitled “Financial Results for the First Three Monthsof the Fiscal Year Ending March 31, 2020.”
Further, for the Company’s earnings announcement for the first three months of the fiscal year
ending March 31, 2020, please see the following URL:
http://tokaiholdings.co.jp/english/ir/library/earnings.html*1 Vision of becoming a TLC: The Group seeks to support comfortable living of customers in a comprehensive anddetail-oriented way through various services it offers, with an aim of enhancing customer satisfaction.
*2 ABCIR+S: An acronym formed by the first letters of AI, big data, cloud, IoT, robotics, and smartphones. It refers toTOKAI Holdings Group’s strategies toward technological innovation.

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 Quarter of theFiscal Year Ending March 31, 2020TOKAI Holdings Corporation(Code: 3167)
July 31, 2019

Main business steadily expands customer base
◎ The number of ongoing trading customers at the end of the first quarter was 2,907
thousand, an increase of 5,000 from 2,902 thousand at the beginning of the period◎ Mainstay LP gas business, CATV business and Aqua business steadily expandcustomer base
( Net customer increase :Thousand)+7+3+7+5+3+5+3+1+3LP gas

CATV
FY2017_1Q※ Excluding customer growth from M & A

FY2018_1Q

Aqua
FY2019_1Q

1

Net sales and profit items updated to record highs◎ In addition to the increase in the number of customers, the strong corporate
information communication business contributed to an increase of ¥ 1.3 billion.
◎ Operating profit also increased sharply by ¥ 800 million (35.2% increase) mainly
due to an increase in monthly charges due to an increase in the number ofcustomers, and an increase in profit from the corporate information
communication business.
(Million of yen)
Q1 FY03/20
Results

Q1 FY03/19
Results(April 1, 2019 toJune 30, 2019)(April 1, 2018 toJune 30, 2018)

YoYChange

Percent Change

45,80444,553+1,250+2.8％

Operating profit

3,231

2,390+841+35.2％

Recurring profit

3,351

2,487+864+34.7％

Net income

2,239

1,432+806+56.3％EPS (Yen)

17.10

10.94

+6.16

+56.3％2

Sales

Two consecutive fiscal years of high profit renewal,for further growth◎ It plans to renew its highest profit for the second consecutive year following fiscal 2018,
enter into a full-fledged profit growth phase, and ensure the large growth of fiscal 2020,
the final year of the medium-term plan.
◎ While continuing to expand the customer base, we will also promote M & A, expand thesales area, and advance to new overseas bases.
(Million of yen)
YoY

FY03/20 Forecasts FY03/19 Results(April 1, 2019 toMarch 31, 2020)(April 1, 2018 toMarch 31, 2019)

ChangePercent Change

200,800

191,600+9,200+4.8％

Operating profit

14,17013,057+1,113+8.5％

Recurring profit

14,04013,259+781+5.9％

Net income

8,230

7,772+458+5.9％

EPS (Yen)

62.85

59.36

+3.49+5.9％

Customer
Number (Thousand)

3,002

2,902+100+3.4％3Sales

Policy of consistently providing stable dividends◎ Plans to pay an annual dividend of 28 yen per share◎ No change was made to the dividend forecasts (announced May 9, 2019).

30

28 yenper share25

628 yenper shareyen
per share

1414

14

14

14

14

20

15

10

12 yen12 yenper shareper share

12 yenper share

12 yenper share

66

6614 yen
per share

118
11566628

28 yenper share

660

Interim dividend

Year-end dividend

Commemorative dividend

4

Policy of consistently providing stable dividends◎ No change was made to the dividend forecasts (announced May 8, 2018).
◎ Plans to pay an annual dividend of 28 yen per share

28 yenper share30

28 yenper share

1414

14

14

FY03/18

FY03/19(Forecast)

625

20

15

28 yenper share

12 yen12 yen12 yen12 yen14 yenper share8

per shareper shareper shareper share

6666101111566666

FY03/12

FY03/13

FY03/14

FY03/15

FY03/160Interim dividend

Year-end dividend

FY03/17

Commemorative dividend

5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 FY2015
Results

Q1 FY2016
Results

Q1 FY2017
Results

Q1 FY2018
Results

Q1 FY2019
Results

42,672

41,61842,531

44,55345,804

Operating profit

1,708

2,870

2,152

2,390

3,231

Recurring profit

1,649

2,900

2,204

2,487

3,351

Quarterly net
income

714

1,766

1,182

1,432

2,239

EPS (Yen)

6.18

15.60

9.33

10.94

17.10

Sales

7

(2) Sales by segment(Millions of yen)

Q1 FY2015
Results

Q1 FY2016
Results

Q1 FY2017
Results

Q1 FY2018
Results

Q1 FY2019
Results

Gas and Petroleum

20,28817,47917,392

17,60818,577

Information andCommunications

9,826

11,78012,447

12,513

12,795

CATV

6,074

6,241

6,406

7,511

7,738

Building and Real
Estate

4,012

3,414

3,617

4,166

3,777

Aqua

1,320

1,424

1,456

1,6531,798

Others

1,149

1,277

1,211

1,100

1,116

42,672

41,61842,531

44,55345,804Total

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

Q1 FY2015
Results

Q1 FY2016
Results

Q1 FY2017
Results

Q1 FY2018
Results

Q1 FY2019
Results

Gas and Petroleum

1,865

2,197

1,324

1,182

1,489

Information andCommunications

691

913

774

724

1,217

CATV

498

717

875

1,194

1,286

63

81

90

213

213

-227

1956

96

169

Others, adjustments-1,182-1,060-969-1,022-1,145

Total

1,708

2,870

2,152

2,390

3,231

Building and Real
EstateAqua*Prior to elimination of indirect expenses

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

Q1 FY2015
Results

Q1 FY2016
Results

Q1 FY2017
Results

Q1 FY2018
Results

Q1 FY2019
Results

Total assets

164,163

155,595

157,498

162,694

163,992

Total liabilities

120,110113,074

101,987

101,736

99,884

Total net assets

44,05342,521

55,511

60,957

64,107

Balance of interestbearing debt

73,461

67,061

54,96652,60450,207

EBITDA

5,898

6,760

5,948

6,032

7,024

Equity ratio

26.3 %

26.8 %

34.7 %

36.8 %38.3 %10(5) Consolidated cash flows(Millions of yen)

Q1 FY2015
Results

Q1 FY2016
Results

Q1 FY2017
Results

Q1 FY2018
Results

Q1 FY2019
Results

Operating cash flow

4,285

8,242

4,851

4,348

6,245

Investment cashflow-3,162-2,454-2,870-3,484-3,227

Free cash flow

1,123

5,787

1,981

864

3,017

Financing cash flow

-1,261-6,216-2,262-1,159-3,210

11

(6) Group customer count(Millions of yen)

Q1 FY2015
Results

Q1 FY2016
Results

Q1 FY2017
Results

Q1 FY2018
Results

Q1 FY2019
Results

625634645

664

687

Previous ISP
model, etc.

802

595

507

451

411

HikariCollaboration

58

251

310

327

326

LIBMO－－

8

32

42

Mobile

235

235

232

225

214

1,095

1,081

1,057

1,035

992

CATV

692

716

738

1,039

1,069

Aqua

130

134

138

151

157

Security

18

17

17

17

17

2,537

2,557

2,570

2,883

2,907
12

Gas (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 are
based 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