May 8, 2020TOKAI Holdings Corporation
Katsuhiko Tokita, President & CEO(Securities Code: 3167, Tokyo Stock Exchange First Section)

Financial Results for the Fiscal Year Ended March 31, 2020 andEarnings Forecast for the Fiscal Year Ending March 31, 2021
We Recorded Record-High Annual Profits for the Second Consecutive Year and Aim to Continue
Securing Growth in Both Sales and Profits during the Fiscal Year Ending March 31, 2021

TOKAI Holdings Corporation (hereinafter, “the Company”) today announced its financial results forthe fiscal year ended March 31, 2020 and its earnings forecast for the fiscal year ending March 31, 2021.

1. The Company recorded 100,000 customers, greatly exceeding its customer countfor the previous fiscal year and thereby achieving initial projections whileexpanding its earnings base
The Company is currently implementing its third medium-term management plan, Innovation Plan
2020 “JUMP,” which extends through the fiscal year ending March 31, 2021. Under this plan, theCompany is actively applying strategies aimed at expanding its earnings base, including investing a
total of 100 billion yen in M&A over the course of four years and forming business alliances. TheCompany also works to address an ongoing business objective by acquiring additional continuing
customers, securing multiple contracts based on the Total Life Concierge (TLC) concept*1, andexpanding service areas.
During the fiscal year ended March 31, 2020, the Company aimed to attain its medium-term targets
by implementing an aggressive sales program that targets an increase in the customer count that
constitutes the Company’s earnings base and implementing M&A-related measures. As a result, theCompany recorded 3,003,000 continuing customers as of March 31, 2020.
This year-end continuing customer count exceeded the count at the beginning of the year
(2,902,000) by 101,000 (versus a net increase of 26,000 during the previous fiscal year) andincluded 65,000 additional continuing customers acquired through M&A. With this continuing
customer count, the Company exceeded its initial target of 3 million. With net increases of
28,680 (LP and city) gas customers (including 5,120 acquired through city gas-related M&A),
91,539 CATV customers (including 59,840 acquired through M&A), and 4,590 Aqua customers(bottled drinking water delivery), we further expanded our earnings base.

2. Sales increased for the third consecutive year and reached a record high for thesecond consecutive year while all profit lines reached record highs for the second
consecutive year
In the fiscal year ended March 31, 2020, sales increased by 4.4 billion yen (+2.3% year onyear) to 196.0 billion yen, rising for the third consecutive year and reaching a record high forthe second consecutive year. Sales growth was underpinned by an increase in customer count,higher sales in the Information and Communications business for corporate clients, and positive effects
generated by M&A.
On the profit front, operating profit rose to 14.2 billion yen, increasing 1.2 billion yen, or 8.9%,
compared to the previous fiscal year, and each profit line reached a record high for the second
consecutive year. This reflected an increase in the number of monthly fee-paying customers that
accompanied a higher customer count, profit growth in the Information and Communications businessfor corporate clients, and positive effects generated by M&A.
All of the Company’s profit lines reached respective targets specified in its initial earnings
forecast.
(Millions of yen)
FY03/20 Results

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

Forecast

YoY

Versus
Forecast

Sales

195,952

191,600

200,800+4,352-4,848Operating profit

14,224

13,057

14,170+1,166+54

Recurring profit

14,47913,25914,040+1,219+439

Net income

8,241

7,772

8,230+468+11

EPS (Yen)

62.93

59.36

62.85

+3.57

+0.08

3. Growth will continue during the fiscal year ending March 31, 2021 as sales risefor the fourth consecutive year and profits reach record highs for the third
consecutive year
For the fiscal year ending March 31, 2021, the Company projects continued growth, with sales
rising for the fourth consecutive year and profits reaching record highs for the third consecutive year.
This fiscal year will be the last in the Company’s current medium-term management plan, and theCompany forecasts that it will be a year that will lay the foundation for growth achieved under its next
medium-term management plan.
The TOKAI Group believes that focusing on continuing customer count expansion will lead to topline growth, an improved earnings base, and large medium- to long-term growth for the entire Group.
Accordingly, it is pushing forward with initiatives aimed at achieving aggressive growth strategies.
During the fiscal year ending March 31, 2021, the Company will conduct these initiatives while
upholding the themes of M&A advancement, ABCIR+S*2 implementation, and TLC enrichment as
specific methods for achieving its targets.
Under its policy of consistently providing stable dividends, the Company plans to pay an annual
dividend of 28 yen per share.

(Millions of yen)
FY03/21 Forecast

FY03/20 Results(April 1, 2020 toMarch 31, 2021)(April 1, 2019 toMarch 31, 2020)

YoY
ChangePercent Change

Sales

205,300

195,952+9,348+4.8%

Operating profit

15,00014,224+776+5.5%

Recurring profit

14,87014,479+391+2.7%

Net income

8,460

8,241+219+2.7%

EPS (Yen)
Customer count at end of
fiscal year

64.60

62.93

+1.67

+2.7%

3,105,000

3,003,000+102,000+3.4%(Yen)
Dividends

FY03/21 (Forecast)

FY03/20

FY03/19

Interim (End of Q2)

14.00

14.00

14.00

Year-end

14.00

14.00

14.00Annual dividend total

28.00

28.00

28.00

Consolidated payout ratio

43.3%

44.5%

47.2%

For details, please see the attached materials, entitled “Financial Results for the Fiscal Year Ended
March 31, 2020 and Earnings Forecast for the Fiscal Year Ending March 31, 2021.”
Further, for the Company’s earnings announcement for the fiscal year ended March 31, 2020,
please see the following URL:
https://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 comprehensiveand detail-oriented way and enhance customer satisfaction through its wide range of services.
*2 ABCIR+S: An acronym formed by the first letters of AI, big data, cloud, IoT, robotics, and smartphones. It refers tothe Group’s strategies targeting technological innovation.

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

Financial Results for theFiscal Year Ending March 31, 2020TOKAI Holdings Corporation(Code: 3167)
May 8, 2020

Achieved 3 million continuous trading customers
at the end of the period◎ A net increase of 101,000 from 2,902 thousand at the beginning of the period, including an increase of
65,000 through M & A (net increase of 26,000 in the previous term)◎ Mainstay LP gas, CATV, and Aqua businesses steadily expand customer base(Thousand)Gas (LP, City)30

760+29713

2520+2380
720+92+298（Include M&A+273）

1,154+1915
1,250
10
1,200
5+11640 0

1,032

1,000-20

1,063

End of quarter

FY2019(Current)

Net increase※Round off less than 1,000※Net increase include customer additions from M & A.

140156146130950-25-40600
FY2018160-101,050-20620

FY2017170

161-15

5+515066020

661+10-5
1,100+3140680

684

180

Aqua

1,150
060
700

1510100740

CATV

900-30FY2017FY2018End of quarter

FY2019(Current)

Net increase

120FY2017

FY2018End of quarter

FY2019(Current)

Net increase

1

Sales and profit items are record highs◎ Sales increased by 4.4 billion yen due to an increase in the number of customers, the favorable
information and telecommunications business for corporations and M & A◎ Operating profit also increased by ¥ 1.2 billion (8.9% increase) mainly due to an increase in monthly
charges due to an increase in the number of customers, and an increase in profit from the corporate
information communication business and M & A.
◎ Each profit item also outperformed the earnings forecast.
(Million of yen)

FY2019Results

FY2018Results

InitialForecasts

YoY
ChangeVersus forecast
Percent
ChangeChangePercent
Change195,952 191,600 200,800 +4,352+2.3-4,848-2.4

Operating profit

14,224 13,057 14,170 +1,166+8.9+54+0.4

Recurring profit

14,479 13,259 14,040 +1,219+9.2+439+3.1

Net income

8,241

7,772

8,230+468+6.0+11+0.1

EPS (Yen)

62.93

59.36

62.85

+3.57

+6.0+0.08+0.1

Sales

2

Continued growth trend with increased sales and profits◎ Continued growth trend with 4th consecutive year of sales increase and 3rd consecutive year ofhighest profit.
◎ In addition to completing the mid-term business plan IP20 "JUMP," we will continue to focus on
expanding our customer base for medium- to long-term growth, while also providing a foundation for
the growth of the next mid-term plan.
◎ The theme is "further promotion of M & A", "practice of ABCIR + S", and "deepening of TLC".
(Million of yen)

YoY

FY03/21 Forecasts FY03/20 Results(April 1, 2020 toMarch 31, 2021)(April 1, 2019 toMarch 31, 2020)

ChangePercent Change

205,300

195,952+9,348+4.8％Operating profit

15,00014,224+776+5.5％

Recurring profit

14,87014,479+391+2.7％

Net income

8,460

8,241+219+2.7％

EPS (Yen)

64.60

62.93+1.67+2.7％

Customer
Number (Thousand)

3,105

3,003+102+3.4％3Sales

Policy of consistently providing stable dividends◎ Based on the Company's dividend policy, which strives for continuous and stable dividends, theannual dividend is planned to be ¥ 28 / share.

28 yenper share30

201028 yen
per share

28 yenper share

28 yenper share

141414

14

14

1414

14

FY2017FY2018FY2019FY2019(Forecast)

625

15

28 yenper share

12 yen12 yen12 yen12 yenper shareper shareper shareper share

6666

14 yenper share

11811566666

FY2011FY2012FY2013

FY2014FY20150Interim dividend

FY2016Year-end dividend

Commemorative dividend

4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)

FY2015Results

Sales

FY2016
Results

FY2017
Results

FY02018
Results

FY2019Results

180,940 178,631 186,069 191,600 195,952

Operating profit

8,245

12,75010,971

13,057

14,224

Recurring profit

8,150

12,775

11,191

13,25914,479Net income

3,458

7,337

6,620

7,772

8,241EPS (Yen)

30.01

64.46

51.19

59.36

62.93
7

(2) Sales by segment(Millions of yen)

FY2015Results

FY2016
Results

FY2017
Results

FY02018
Results

FY2019Results

Gas andPetroleum

80,74573,34476,073

77,977

78,154

Information andCommunications

44,24649,50850,894

51,23451,753

CATV

24,60825,39628,38630,511

31,385

Building and Real
Estate20,975

19,511

19,807

20,09022,383

Aqua

5,487

5,762

6,200

7,004

7,416

Others

4,875

5,108

4,706

4,781

4,858

Total

180,936 178,631 186,069 191,600 195,952

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

FY2015Results

FY2016
Results

FY2017
Results

FY02018
Results

FY2019Results

Gas andPetroleum

8,991

9,161

7,364

6,815

7,452

Information andCommunications

2,308

4,213

3,174

3,827

4,226

CATV

1,975

2,752

3,554

4,953

5,024

Building and Real
Estate

1,266

1,098

1,330

1,615

2,116

Aqua

-1,119

298

246

762

674

Others,adjustments-5,175- 4,775- 4,699- 4,916- 5,271

Total

8,245

12,75010,971

13,057

14,224*Prior to elimination of indirect expenses

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

FY2015Results

FY2016
Results

FY2017
Results

FY02018
Results

FY2019Results

Total assets

160,303

161,112

165,993

167,606

169,972

Total liabilities

118,332

104,665

104,543

103,711

103,989

Total net assets

41,97056,44661,45063,89465,982

Balance ofinterest-bearing
debt

71,41054,13750,98050,604

48,273

EBITDA

24,98028,392

26,31828,14829,651Equity ratio

25.6 %

34.5 %

36.3 %

37.4 %

38.0 %
10(5) Consolidated cash flows(Millions of yen)

FY2015Results

FY2016
ResultsFY2017
Results

FY02018
Results

FY2019Results

Operating cashflow

21,395

26,692

20,90921,60522,535Investment
cash flow- 11,015- 10,985- 11,488- 12,443- 12,131

Free cash flow

10,37915,706

9,421

9,161

10,403Financing cashflow

- 9,150- 16,643- 9,527- 8,147- 10,37511

(6) Group customer count(Thousands of customers)

FY2015Results

FY2016
Results

FY2017
Results

FY02018
Results

FY2019Results

634

642

661

684713

Previous ISP
model, etc.

633

527465419

389

Hikari Collaboration

219

299323327

324

LIBMO－2

29

41

48

Mobile

236

233

227

217

212

1,088

1,061

1,044

1,004

973

CATV

710

733

1,032

1,063

1,154

Aqua

133

135

146

156

161

Security

18

17

17

17

16

2,558

2,564

2,876

2,902

3,003

Information andCommunications

Gas (LP and city gas)

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.

12The 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