October 28, 2021
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 Six 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 six
months 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. 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 six months of the fiscal year under review, the Company conducted remote sales
activities that do not involve direct human contact and was thorough in taking other measures to prevent
COVID-19 infections. Meanwhile, the Company took proactive steps to attract customers and recorded 3,125,000
continuing customers as of September 30, 2021. This continuing customer number exceeded the count at
the beginning of the fiscal year (3,099,000) by 26,127 (versus an increase of 39,003 in the same period of theprevious fiscal year, including M&A-related 8,253).
With net increases of 19,920 (LP and city) gas customers (15,365 in the same period of the previous fiscal
year), 16,613 CATV customers (25,077, including M&A-related 8,253 customers), and 2,913 Aqua (bottled
drinking water delivery) customers (a decrease of 247 in the same period of the previous fiscal year), we
further expanded our earnings base.

2. Sales increased for the first time in two periods and hit a record high.
In the six months ended September 30, 2021, the Company recorded sales of 96.1 billion yen (up 6.2 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 was 5.2 billion yen, down 200 million yen, or 4.2% year on year, which was
almost on a par with that of the same period of the previous year. This was mainly due to an increase in thenumber of monthly fee-paying customers that accompanied a higher customer account and an increase in profit in
the Information and Communications business, despite an increase in expenses for gaining customers, reflecting
more LP gas and Aqua customers gained than a year ago, and expenses to improve the working environment as
part of work-style reform.
Quarterly net income attributable to owners of the parent was 2.3 billion yen, down 1.0 billion yen, or 30.4% 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 was generally in line with the internal plan, despite the aforementioned
temporary extraordinary loss.
(Millions of yen)

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

Q2 FY03/22 results
Q2 FY03/21 results(April 1, 2021 to(April 1, 2020 to
September 30, 2021) September 30, 2020)
96,06089,836
5,223
5,452
5,284
5,499
2,281
3,279
17.42
25.04

YoY
Change% change+6,224
-229
-214
-997
-7.62

+6.9%
-4.2%
-3.9%
-30.4%-30.4%

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 fiscal year ending March 31, 2022 is 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.
To expand the earnings base, the Company will actively make investments to gain customers, primarily in the LPgas business, and factors in expenses for developing an environment for workstyle reform. Meanwhile, theCompany will continue to increase annual sales and profit.
The earnings and dividend forecasts for the fiscal year ending March 31, 2022 remain unchanged.
(Millions of yen)

Net sales
Operating profit
Recurring profit
Net income
EPS (yen)
Customer count at
end of fiscal year

FY03/22 forecast(April 1, 2021 toMarch 31, 2022)
207,000
15,24015,3208,830
67.42

FY03/21 results(April 1, 2020 toMarch 31, 2021)
196,726
15,22615,312
8,815
67.32

3,195,000

3,099,000

FY03/22(forecast)Interim (end of Q2)
Year-end
Annual dividend per share

YoY
Change+10,274
+14
+8
+14
+0.10

+5.2%
+0.1%
+0.1%
+0.2%
+0.2%

+97,000+3.1%

FY03/2215.00 yen

15.00 yen
30.00 yen

% change

FY03/2114.00 yen
16.00 yen
30.00 yen

For details, please see the attached materials, entitled “Financial Results for the First Six Months of the Fiscal Year Ending March 31,
2022.”For the Company’s earnings announcement for the first six months of the fiscal year ending March 31, 2022, please see the following
URL:
https://www.tokaiholdings.co.jp/ir/library/earnings.htm

*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 Second Quarter of the
Fiscal Year Ending March 31, 2022
TOKAI Holdings Corporation(Code: 3167)
October 28, 2021

Steady growth of customer base in core businesses◎ Continuing customer count reached 3,125,000 at the end of Q2, up 26,000 from 3,099,000 at the
beginning of the year.
◎ Earnings base further expanded for mainstay gas, CATV, and Aqua businesses.
(LP and City) Gas

6(Thousands of customers)

30

+20

20

800
20

+15

16

12

1,350

+25

+17

+14

764

1,214

10

+3

2
1,250

750
0

1,150
-2

+11

△0

+3

170

165

165

h

728

650

1,050

1,179

-20

696

-6
1,000

1,076

-30

0

Customer count at end of period

Q2 FY03/22

Net increase

159

161

155

950 -8600-40Q2 FY03/21

160

1,100
-4

8

Q2 FY03/20

4
1,300

1,2000

700
-10

4

Aqua

CATV

24

Q2 FY03/20

Q2 FY03/21

Customer count at end of period

Note: Figures are rounded to the nearest thousand.
The net increase includes an increase in customers due to M & A.

Q2 FY03/22

900-10Net increase

150
Q2 FY03/20

Q2 FY03/21

Customer count at end of period

Q2 FY03/22

Net increase1Significant increase in monthly billing for core businesses◎ By expanding the number of customers, which is the revenue base, it will lead toan increase in revenue due to an increase in the number of monthly charges.
(Monthly charges number,Thousands of customers)

5,809
3,400

2,024

650,000（up 12.7%）
390,000（up 13.0%）

70,000（up 3.4%）

5,725
5,644

3,327

2,007

3,251
3,180
5,344

3,126

5,269

1,963

5,210

3,063

1,957 1,956 1,955

5,156

3,010

1,944

2Q

4Q

2Q

FY20184Q

FY20192Q

4Q

FY20202Q
FY2021

2Q

4Q

FY2018LP gas2Q

4Q

FY20192Q

4Q

FY20202Q
FY2021

2Q

4Q

2Q

FY20184Q

FY2019

CATV

2Q

4Q

FY20202Q
FY2021

HikariCollaboration

2

Sales hit a record high◎ Sales reached a record high due to the increase in the number of customers, expansion of theinformation and communication business for corporations, and the effect of M & A in the building
equipment real estate business.
◎ In terms of profits, although there were increases in customer acquisition costs and costs for
improving the environment for work style reforms, profits increased due to an increase in monthly
billing due to an increase in the number of customers and an increase in the information andcommunications business for corporations, which was about the same as the same period of theprevious year.
◎ Due to the recording of a temporary extraordinary loss, net income decreased by 1 billion yen yearon-year.
(Millions of yen)YoY

Q2 FY03/22 results Q2 FY03/21 results(April 1, 2021–September 30,
2021)(April 1, 2020–September 30,
2020)

Sales

96,06089,836+6,224+6.9

Operating profit

5,223

5,452

-229

-4.2

Recurring profit

5,284

5,499

-214

-3.9

Net income

2,281

3,279

-997

-30.4

EPS (yen)

17.42

25.04

-7.62

-30.4

Change% change3Year-on-year comparisons of operating profit by segment◎ Energy, CATV, and Aqua posted an increase in profits due to an increase in the number ofcustomers, and information and communications for corporations also performed well.
◎ Energy and Aqua spend more to promote customer acquisition at a faster pace than the previous
year◎ Recorded the cost of improving the environment for work style reform in the adjustment amount
60.0

55.0

Customers Operating income

3.04 mn+0.12（単位：億円）

+0.32

5.45

-0.42

Customers-0.26

3.12 mn
-0.36

+0.37

5.22

50.0
Energy45.0

Information andCommunications

Customerincrease+0.52

Acquisition
costs

-0.5

Other costs -0.13

40.0

Temperature,
+0.37
etc.

35.0

For
+0.22
corporations
Acquisition
costs

-0.13

LIBMO

+0.13

CATV
Customerincrease+0.32

Construction,
Equipment, andReal Estate
Renovation +0.08
Building
andfacilities

Aqua
+0.02

Other
businesses andAdjustments

Acquisition
+0.28
costs

Bridal events,
+0.03
etc.

Customerincrease

Adjustments -0.39

-0.04

For
+0.03
individuals

Purchasing
+0.06
costs

Other costs -0.14

エネルギー

情報通信

30.0

FY2020_2Q
分類 1

CATV

建築不動産

アクア

FY2021_2Q
分類 7

その他調整額4

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

Expanding growth investment with strengthened equity
capital◎ Equity ratio further improved by 0.9pp.
◎ The decrease in operating cash flow is due to a decrease in debt collection and an increase in income taxes
paid.
◎ Interest-bearing debt / EBITDA ratio of 1.4 times, maintaining the level at the end of the previous fiscal year

Equity ratio

41.6

%

March 31, 2021

Interest-bearing debt

42.1

billion yen

March 31, 2021

Cash provided by operating
activities

14.8

Cash used in investing
activities-10.7

Free cash flow

billion yen

September 30, 2020
billion yen

September 30, 2020

4.1

billion yen

September 30, 2020

Interest-bearing debt to
EBITDA ratio

1.4

X

FY03/20

Note: * Interest-bearing debt / EBITDA ratio for the fiscal year ending September 2021 is based on the annual outlook EBITDA

➡
➡

42.5

%

September 30, 2021

45.2

billion yen

September 30, 2021

➡

11.4

➡

-9.0

➡

2.4

➡

1.4

billion yen

September 30, 2021
billion yen

September 30, 2021
billion yen

September 30, 2021
X

September 30, 2021

5

Full-year consolidated earnings forecast◎ FY2021 is the year to build the foundation for realizing the five key messages set ((1) Promotion of
LNG strategy, (2) Evolution of TLC, (3) Full-scale DX strategy, (4) Optimal allocation of management
resources, (5) Strengthening efforts toward SDGs) forth in the medium-term management plan IP24
announced in May 2021.
◎ Profit continues to increase, although costs such as strengthening LP gas customer acquisition andimproving the environment for work style reforms.
(Millions of yen)

YoY

FY03/21 forecast

FY03/20 results(April 1, 2020–March 31, 2021)(April 1, 2019–March 31, 2020)

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%

3,195,000

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

Customer count at
end of fiscal year

Change% change

6

Dividend forecast◎ Based on the annual dividend of 30 yen / share raised in FY2020, we plan to
pay a dividend in the range of 40 to 50% in FY2021.
◎ No change in dividend forecast (announced on May 11, 2021)
54.7%

50

45

47.2%

46.7%

52.9%

44.2%

50.0%

44.5%

43.4%

44.6%

44.5%

30yen

30yen

40.2%

40

35

28yen
per share

35.1%

30

40.0%

per share per share
30.0%

6

25

20

14yen

12yen
15

10

per shareper share

6

6

6

6

8

6

6

6

6

6

5

14

14

14

16

15
20.0%

11
10.0%

11

14

14

14

14

15

0

0.0%

FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019Interim dividendYear ended dividend

Commemorative dividend

Dividend payout ratio

FY2020

FY2021(Forecast)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(7) EBITDA by business(1) Consolidated results(Millions of yen)

1H FY03/18
Results

1H FY03/19
Results

1H FY03/20
Results

1H FY03/21
Results

1H FY03/22
Results

84,911

88,84093,01589,836

96,060Operating profit

3,114

3,475

5,500

5,452

5,223

Recurring profit

3,143

3,580

5,608

5,499

5,284

Net income

1,246

1,736

3,492

3,279

2,281

EPS (Yen)

9.76

13.26

26.67

25.04

17.42

Sales

9

(2) Sales by segment(Millions of yen)

1H FY03/18
Results

1H FY03/19
Results

1H FY03/20
Results

1H FY03/21
Results

1H FY03/22
Results

Energy32,77733,94835,76633,43036,153

Information andCommunications

24,90625,15425,911

25,13125,302

CATV

13,607

15,135

15,593

16,49016,081

Construction,
Equipment and Real
Estate

8,349

8,987

9,736

9,074

12,361

Aqua

3,055

3,490

3,752

3,880

3,913

Others

2,214

2,123

2,255

1,828

2,248

84,911

88,84093,01589,836

96,06010

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

1H FY03/18
Results

1H FY03/19
Results

1H FY03/20
Results

1H FY03/21
Results

1H FY03/22
Results

Gas and Petroleum

1,562

1,084

1,966

2,382

1,963

Information andCommunications

1,541

1,608

2,269

2,036

2,405

CATV

1,769

2,330

2,539

2,633

2,957

Construction,
Equipment and Real
Estate

388

554

843

621

738

Aqua

135

291

400

446

186

Others, adjustments-2,282-2,393-2,519-2,667-3,027

Total

3,114

3,475

5,500

5,452

5,223
11

*Prior to elimination of indirect expenses

(4) Consolidated financial indicators(Millions of yen)

1H FY03/18
Results

1H FY03/19
Results

1H FY03/20
Results

1H FY03/21
Results

1H FY03/22
Results

Total assets

160,467

164,920

165,616

167,687

177,855

Total liabilities

101,644

102,493

100,633

98,288100,713

Total net assets

58,82262,42664,982

69,39877,142

Balance of interestbearing debt

55,01954,93050,92748,25945,212

EBITDA

10,764

10,892

13,116

13,35013,193Equity ratio

36.0 %

37.1 %

38.4 %

40.5 %

42.5 %
12(5) Consolidated cash flows(Millions of yen)

1H FY03/18
Results

1H FY03/19
Results

1H FY03/20
Results

1H FY03/21
Results

1H FY03/22
Results

Operating cash
flow

7,888

7,193

10,706

14,805

11,382

Investment cashflow

-6,931-6,964-6,859-10,696-8,997

Free cash flow

957

229

3,846

4,109

2,384

Financing cash
flow

-1,42758-3,659-4,048-1,68013

(6) Group customer count(Thousands of customers)

1H FY03/19
Results

1H FY03/20
Results

1H FY03/21
Results

1H FY03/22
ResultsGas (LP and city gas)

648

670

696

728

764

Previous ISP
model, etc.

492

440

403

379

386

Hikari Collaboration

315

328

324

332

339

13

36

43

51

54

CATV

819
995

804
1,046

770
1,076

762
1,179

779
1,214

Aqua

141

156

159

161

165

Mobile

231
17

223
17

215
16

209
16

198
16

2,827

2,893

2,918

3,042

3,125
14

Information andCommunications

1H FY03/18
Results

LIBMO
Subtotal

Security
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.

（７） EBITDA by business(Millions of yen)

EnergyInformation andCommunicationsFor
individualFor
corporate

1H FY03/18
Results

1H FY03/19
Results

1H FY03/20
Results

1H FY03/21
Results

1H FY03/22
Results

3,866

3,427

4,355

4,699

4,348

662

867

3,018

3,174

2,846

2,936

3,774

4,898

5,230

5,372

5,627

5,804

Construction, Equipment
and Real Estate

726

894

1,192

1,001

1,224

Aqua

420

552

697

758

531

10,764

10,892

13,116

13,35013,193CATV

EBITDA （All）* EBITDA = operating profit + depreciation (operating profit is before allocation of indirect costs, etc.)* Information and communication has been divided into those for individuals and those for corporations from the previous term. Before that, the numerical value of theentire information and communication is displayed.

15

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.
Public Relations and Investor Relations Office
TOKAI Holdings Corporation
1-9-1 Kaigan 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