May 11, 2021
TOKAI Holdings Corporation
Katsuhiko Tokita, President & CEO(Securities Code: 3167, Tokyo Stock Exchange First Section)

Financial Results for the Fiscal Year Ended March 31, 2021
Achieved Increased Sales for the Fourth Consecutive Fiscal Year and Generated RecordHigh Profits for the Third While Expanding Our Customer Base despite Impact from the
COVID-19 Pandemic
TOKAI Holdings Corporation (hereinafter, the “Company”) today announced its financial results forthe fiscal year ended March 31, 2021 (April 1, 2020–March 31, 2021).

1. Customer count expanded by about 100,000 for the second consecutive fiscal
year as the Company continued to expand its earnings basePreviously, the Company was implementing its third medium-term management plan, Innovation
Plan 2020 “JUMP,” which extended through the fiscal year ended March 31, 2021. Under this plan, we
actively applied strategies aimed at expanding our earnings base, including investing in M&A andforming business alliances. We also worked to address an ongoing business objective by acquiring
additional continuing customers, securing multiple contracts based on the total life concierge (TLC)
concept*1, and expanding 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 fiscal year ended March 31, 2021, the Group ensured
the safety of customers and employees and fulfilled its responsibility to continue providing services bythoroughly implementing measures aimed at preventing the spread of COVID-19.
We actively conducted remote sales activities that do not involve direct human contact andinvolved new forms of Internet-based information transmission, business meetings, and telemarketing.
As a result, the Group recorded 3,099,000 continuing customers as of March 31, 2021. This
continuing customer count exceeded the count at the beginning of the fiscal year (3,003,000)
by more than 95,000.
Following an increase of 101,000 continuing customers in the fiscal year ended March 31,
2020 (including 65,000 customers added through M&A), the Company achieved continuing
customer growth of about 100,000 for the second consecutive fiscal year.
With net increases of 31,206 (LP and city) gas customers, 43,520 CATV customers, and12,939 Hikari Collaboration customers, we further expanded our earnings base.

2. Sales increased for the fourth consecutive fiscal year and profits reached recordhigh levels for the third, exceeding forecasts

In the fiscal year ended March 31, 2021, sales reached 196,726 million yen, up 774 million yen,or 0.4%, year on year, rising for the fourth consecutive fiscal year. Factors contributing to theincrease in overall sales were growth in the volume of LP gas sold to households; expansion in ourrecurring revenue business providing information and communications services to corporate
customers; and increases in customer counts within both the CATV and Aqua (bottled drinking water
delivery) businesses. These factors offset downward impact incurred from a decline in gas selling
prices caused by a decrease in procurement prices for LP gas and city gas (no effect on profit) andthe COVID-19 pandemic.
On the profit front, some businesses, such as the bridal events and banquet businesses, incurred
negative impact from the COVID-19 pandemic, but this impact was offset by various factors, including
an increase in profit from growth in the number of monthly billings caused by higher customer counts
in the LP gas, CATV, and Aqua businesses and greater profit from the Information andCommunications business for corporate clients. As a result, operating profit rose to 15,226 million
yen, up 1,001 million yen, or 7.0% year on year, increasing for the third consecutive fiscal year
as all profit lines reached record-high levels.
Furthermore, all profit lines exceeded corresponding targets in the Company’s initial
forecast.
(Millions of yen)
FY03/21 results

FY03/20 results

Forecast(April 1, 2020–
March 31, 2021)(April 1, 2019–
March 31, 2020)(announced
May 8, 2020)

YoY

Versusforecast

Sales

196,726

195,952

205,300+774-8,573Operating profit

15,226

14,22415,000+1,001+226

Recurring profit

15,312

14,47914,870+833+442

Net income

8,815

8,241

8,460

+574

+355

EPS (yen)

67.32

62.93

64.60

+4.39

+2.72

3. Operating profit grew in the Energy, CATV, and Information and Communications
segments, driving the overall increase
The Company recorded profit increases in the mainstay Energy segment as well as in the CATV
and Aqua segments thanks to growth in the number of monthly billings that stemmed from a rise incustomer count. Profit also increased in the Information and Communications segment due primarily
to expansion in AWS and other cloud services associated with the Information and Communications
business for corporations.

4. Operating cash flow grew while the Company expanded M&A investment inaccordance with growth strategies
Cash provided by operating activities amounted to 32,223 million yen, up 9,688 million yen year
on year, due mainly to the increase in operating profit and growth in working capital.
Cash used in investing activities came to 17,068 million yen, growing 4,936 million yen year on
year, and consisted primarily of expenditures related to the acquisition of shares performed inassociation with active M&A investment targeting strategic growth for the Group and to the purchaseof businesses.

As a result of these factors, the Company reported positive free cash flow of 15,155 million yen,
up 4,751 million yen year on year, as it achieved further improvement in its financial position.

5. Recorded record-high profits for the third consecutive fiscal year and expanded
shareholder returns
The Company regards the return of profits to shareholders as one of its most importantmanagement issues. Accordingly, it maintains a fundamental policy of continuously providing stabledividends.
Despite impact from the COVID-19 pandemic, results in the fiscal year ended March 31, 2021
exceeded initial projections as sales increased for the fourth consecutive fiscal year and all profit lines
reached record-high levels for the third.
As announced on March 11, 2021, the Company plans to issue a year-end dividend of 16
yen per share, two yen higher than its initial forecast of 14 yen per share, and accordingly
forecasts total annual dividends of 30 yen per share.
(Yen)
Dividends

FY03/21

FY03/20

Interim (end of Q2)

14.00

14.00

Year-end

16.00

14.00

Annual dividend total

30.00

28.00

Total dividend amount (millions of yen)

3,940

3,678

Consolidated dividend payout ratio

44.6%

44.5%

Consolidated DOE

5.6%

5.8%

For details, please see the attached materials, entitled “Financial Results for the Fiscal Year Ended
March 31, 2021.”
Further, for the Company’s earnings announcement for the fiscal year ended 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.

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

Financial Results for the Fiscal Year
Ended March 31, 2021
TOKAI Holdings Corporation(Securities Code: 3167)
May 11, 2021

Strong customer base expansion in core businesses◎ As of March 31, 2021, continuing customer count was 3,099,000, up more than 95,000 from 3,003,000 as of April 1,
2020.
◎ Earnings bases further expanded in the mainstay gas, CATV, and Hikari Collaboration businesses.

(LP and City) Gas
35(Thousands of customers)

CATV

800

+31

Hikari Collaboration

+44

780
45

1,250
10

30

25

+24

744

+22

760
35
740

+31

+32

1,198

350

+13

345

340

+5

337

1,200

335

-3

0
1,150

720
25

20

20
1,300

330

700
1,100
-10

15

325

68015
10

5

713
684

1,050

1,154

660
5
640

-20

1,063

1,000

620-5

0
FY03/19

FY03/20

FY03/21

Customer count at end of period
Net increase
Notes: Figures are rounded to the nearest thousand.
Net increases exclude customers added through M&A.

320

327

324
315

950-30FY03/19

FY03/20

FY03/21

Customer count at end of period
Net increase

310
FY03/19

FY03/20
FY03/21
Customer count at end of period
Net increase1Factors contributing to net increase in customer countin core businesses◎ Net increase in the gas business grew by 30% year on year along with market expansion in new areas.
◎ In the CATV business, communications services customers increased substantially, rising 60% year on year.
◎ Net increase was achieved in the Information and Communications business, putting a stop to six consecutive years of
net decrease.
◎ Net increase was recorded in the Aqua business despite self-imposed business activity curtailment implemented in
response to the COVID-19 pandemic.
Net increase(Thousands of customers)

FY03/21

FY03/20

YoY

FactorsGas (LP and city gas)

+31

+24

+8

(Existing areas)

(+19)

(+8)

(+11)

CATV

+44

+32

+12

(of which,communications services)

(+30)

(+18)

(+12)

Information andCommunications

+24

-26

+50

(of which, ISP)

(+19)

(-34)

(+53)

Aqua

+1

+5

-3

• LP gas-associated increase of 19,000 customers
in existing areas• 11 new LP gas sites added 11,000 customers• Customers of communications services increased
60% year on year

• Improvement in both new registrations andcancellations contributed to an increase in ISP
customers• Recorded a net increase of 1,632 customers in 2H,
offsetting a net decrease of 247 in 1H

Notes: Figures exclude customers added through M&A.
Starting in FY03/21, continuing ISP customers in the Information and Communications business include customers with contracts for supplementary ISP services.

2

Significant increase in monthly billing volume in corebusinesses◎ We aim to expand customer count, our earnings base, thereby increasing earnings backed by growth in the numberof monthly billings.
Monthly billing volume(thousands)

5,725

3,327

2,007
5,644

3,251
5,344

3,180

420,000 (+14.4%)

5,156

3,126

1,944

1,190,000 (+26.1%)

5,040

3,063

5,210

1,963

1,957 1,956 1,955

5,269

160,000 (+8.8%)
1,909

3,010
2,950
2,908

4,539
1,844

1H

2H

FY03/18

1H

2H

FY03/19

1H

2H

FY03/20

LP gas

1H

2H

FY03/211H

2H

FY03/18

1H

2H

FY03/19

1H

2H

FY03/20

CATV

1H

2H

FY03/211H

2H

FY03/18

1H

2H

FY03/19

1H

2H

FY03/20

1H

2H

FY03/21

Hikari Collaboration

3

Sales and all profit lines reached record-high levels forthe third consecutive fiscal year
◎ Sales increased despite a decline in gas selling prices resulting from a decrease in procurement prices and sales
activity delays caused by the COVID-19 pandemic. Contributing to the increase were customer count growth andexpansion in the Information and Communications business for corporate customers.
◎ Although some business incurred impact from COVID-19, profits increased for the third consecutive fiscal year
thanks in part to a rise in the number of monthly billings associated with customer count growth and a larger
contribution from the Information and Communications business for corporations.
◎ All profit lines exceeded projections.
(Millions of yen)

YoY

Versus forecast

FY03/21
results

FY03/20
results

Initialforecast

Sales

196,726

195,952

205,300

+774

+0.4%

-8,573-4.2%

Operating profit

15,226

14,22415,000+1,001

+7.0%

+226

+1.5%

Recurring profit

15,312

14,47914,870

+833

+5.8%

+442

+3.0%

Net income

8,815

8,241

8,460

+574

+7.0%

+355

+4.2%

EPS (yen)

67.32

62.93

64.60

+4.39

+7.0%

+2.72

+4.2%

Change% change

Change% change

4Year-on-year comparisons of operating profit bysegment◎ Recorded profit increases resulting from customer count growth in the Energy, CATV, and Aqua businesses, as well
as strong performance in the Information and Communications business for corporations◎ Put a stop to customer count decline in the Information and Communications business for individuals◎ The bridal events business and the Construction, Equipment, and Real Estate business incurred impact fromsources such as sales activity delays caused by the COVID-19 pandemic.

160.0

150.0

140.0

Operating profit(Billions of yen)
Customers

3.0mn

14.22
142.2

130.0

120.0

-0.10
△1.0

Customers

-0.68
△6.8
+1.54
+15.4

Energy+1.19

Acquisition
costs

-0.55

Temperature,
+0.51
etc.
Purchasing
+0.86
costs

3.1mn

15.22
152.2
Information andCommunications

Customerincrease

Other costs -0.47

110.0

△0.5
-0.05

+0.18
+1.8

+0.12
+1.2

For
+0.63
corporations
Acquisition
costs

-0.20

LIBMO

+0.11

For
individuals

-0.42

CATV
+0.37

Construction,
Equipment, andReal Estate

Other costs -0.19

Renovation +0.01

Customerincrease

Building
andfacilities

-0.06

Aqua
+0.18

Other
businesses andadjustments

Acquisition
+0.01
costs

Bridal events,
-0.48
etc.

Other costs -0.29

Adjustments -0.20

アクア

その他調整額Customerincrease

100.0

FY03/20
分類 1

エネルギー

情報通信

CATV

Note: Change in operating profit does not reflect impact from the allocation of overhead costs.

建築不動産

FY03/21
分類 7

5

Expanding growth investment with strengthened equity
capital◎ Equity ratio further improved by 3.6pp.
◎ Operating cash flow increased by 9.7 billion yen thanks to growth in working capital resulting primarily from thecollection of receivables.
◎ Free cash flow grew despite active growth investment. The interest-bearing debt to EBITDA ratio also improved.

38.0

Equity ratio➡

%

March 31, 2020

48.3

Interest-bearing debt

billion yen

March 31, 2020

Cash provided by operating
activities

22.5

Cash used in investing
activities

12.1

Free cash flow

10.4

billion yen

FY03/20
billion yen

FY03/20
billion yen

FY03/20

1.6Interest-bearing debt to
EBITDA ratio

X

FY03/20

➡

41.6

%

March 31, 2021

42.1

billion yen

March 31, 2021

➡

32.2

➡

17.1

➡

15.2

➡

1.4

billion yen

FY03/21
billion yen

FY03/21
billion yen

FY03/21X

FY03/21

6

Achieved record-high profits for the third consecutive
fiscal year and expanded shareholder returns◎ Profits reached record-high levels for the third consecutive fiscal year and exceeded projections. Accordingly, weraised our year-end dividend forecast to 16 yen per share, up two yen from its previous level of 14 per share, andnow project annual dividends of 30 yen per share.
◎ We continue to maintain a high dividend payout ratio.
54.7%

50

(Dividend payout ratio)
45

47.2%

46.7%

52.9%

44.2%

50.0%

44.5%

43.4%

44.6%

40.2%

40

40.0%

35

28 yen35.1%

30

28 yen28 yen28 yen30 yen30.0%

20Increase

6

25

14

(Dividend per share)

14

14

16
20.0%

15

10

14 yen12 yen12 yen12 yen12 yen

6

6

6

6

8

6

6

6

6

6

5

11
10.0%

11

14

14

14

14

0

0.0%

FY03/12

FY03/13

FY03/14

Interim dividend

FY03/15

FY03/16

Year-end dividend

FY03/17

FY03/18

FY03/19

Commemorative dividend

FY03/20

FY03/21

Payout ratio

7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)

FY2016
Results

Sales

FY2017
Results

FY02018
Results

FY2019Results

FY2020Results

178,631 186,069 191,600 195,952 196,726

Operating profit

12,75010,971

13,057

14,224

15,226

Recurring profit

12,775

11,191

13,25914,47915,312

Net income

7,337

6,620

7,772

8,241

8,815

EPS (Yen)

64.46

51.19

59.36

62.93

67.32
9

(2) Sales by segment(Millions of yen)

FY2016
Results

FY2017
Results

FY02018
Results

FY2019Results

FY2020Results

Gas andPetroleum

73,34476,073

77,977

78,154

77,380Information andCommunications

49,50850,894

51,23451,75350,735

CATV

25,39628,38630,511

31,38533,745

Building and Real
Estate19,511

19,807

20,09022,38323,177

Aqua

5,762

6,200

7,004

7,416

7,622

Others

5,108

4,706

4,781

4,858

4,065

Total

178,631 186,069 191,600 195,952 196,726

10(3) Operating profit by segment(Millions of yen)

FY2016
Results

FY2017
Results

FY02018
Results

FY2019Results

FY2020Results

Gas andPetroleum

9,161

7,364

6,815

7,452

8,988

Information andCommunications

4,213

3,174

3,827

4,226

4,344

CATV

2,752

3,554

4,953

5,024

5,205

Building and Real
Estate

1,098

1,330

1,615

2,116

2,065

298

246

762

674

573

Others,adjustments- 4,775- 4,699- 4,916- 5,271- 5,949

Total

12,75010,971

13,057

14,224

15,226

Aqua*Prior to elimination of indirect expenses

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

FY2016
Results

FY2017
Results

FY02018
Results

FY2019Results

FY2020Results

Total assets

161,112

165,993

167,606

169,972

178,974

Total liabilities

104,665

104,543

103,711

103,989

102,917

Total net assets

56,44661,45063,89465,982

76,056

Balance ofinterest-bearing
debt

54,13750,98050,604

48,27342,128

EBITDA

28,392

26,31828,14829,651

31,027

Equity ratio

34.5 %

36.3 %

37.4 %

38.0 %

41.6 %
12(5) Consolidated cash flows(Millions of yen)

FY2016
Results

FY2017
Results

FY02018
Results

FY2019Results

FY2020Results

26,692

20,90921,60522,53532,223- 10,985 - 11,488 - 12,443 - 12,131-17,068

Free cash flow

15,706

9,421

9,161

10,40315,155

Financing cashflow

- 16,643- 9,527- 8,147 - 10,375-14,064

Operating cash
flow
Investment
cash flow13(6) Group customer count(Thousands of customers)

FY2016
Results

FY2017
Results

FY02018
Results

FY2019Results

FY2020Results

642

661

684

713

744

Previous ISP
model, etc.

527

465

419

389

395

Hikari Collaboration

299

323

327

324

337

2

29

41

48

53

1,061

1,044

1,004

973

785

CATV

733

1,032

1,063

1,154

1,198

Aqua
Mobile

135
233

146
227

156
217

161
212

162
206

Security

17

17

17

16

16

2,564

2,876

2,902

3,003

3,099

Information andCommunications

Gas (LP and city gas)

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.

14

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