Consolidated Financial Results for theYear ended March 31, 2020 [Japanese GAAP]May 8, 2020
Company name:
Stock code:
Representative:
Contact:

TOKAI Holdings Corporation
Stock listing:Tokyo Stock Exchange
3167
URL:
http://tokaiholdings.co.jp
Katsukiho Tokita, President & CEO
Junichi Yamada, Managing Executive Officer, General Manager of Administrative Headquarters
Telephone: +81-54-275-0007
Scheduled date of General shareholders' meeting:June 25, 2020
Scheduled start date of dividend payment:
June 26, 2020
Scheduled date to submit Securities Report:
June 25, 2020
Supplementary materials on financial results:
Yes
Quarterly financial results briefing:
Yes (Institutional Investors only)(Figures are rounded to the nearest million yen)

1. Consolidated financial results for the year ending March 31, 2020 (April 1, 2019 to March 31, 2020)(% figures represent year-on-year changes)(1) Consolidated Operating Results
Sales

Operating Profit

Net Income
Attributable to
Owners of the
ParentRecurring Profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Year ended March 31, 2020

195,952

2.3

14,2248.9

14,479

9.2

8,241

6.0

Year ended March 31, 2019

191,600

3.0

13,05719.0

13,259

18.5

7,772

17.4

(Note) Comprehensive income: 5,834 million yen in the Year ended March 31, 2020 (-4.8%)
6,127 million yen in the Year ended March 31, 2019 (-3.9%)
Net Income
per Share

Net Income per
Share (Diluted)

Return on
EquityRecurring Profit
to Total Assets

Operating Profit
Margin

Yen

Yen

%

%

%

Year ended March 31, 2020

62.93

-

13.0

8.6

7.3

Year ended March 31, 2019

59.36

-

12.6

7.9

6.8

(Reference) Equity in affiliates accounted for under the equity method: 85 million yen for the ended March 31, 2020
4 million yen for the ended March 31, 2019(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Net Assets per Share

Millions of yen

Millions of yen%

Yen

Year ended March 31, 2020

169,972

65,98238.0

493.26

Year ended March 31, 2019

167,606

63,89437.4

478.26(Reference) Equity: 64,595 million yen for the Year ended March 31, 2020
62,627 million yen for the Year ended March 31, 2019(3) Consolidated Cash Flows
Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Cash and Cash
Equivalents at theEnd of the Year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Year ended March 31, 2020

22,535(12,131)(10,375)

4,046

Year ended March 31, 2019

21,605(12,443)(8,147)4,018

2. Dividends
Annual Dividend
End of End of
YearQ2
Q3
end

End of
Q1

Total

Total
Dividends

Payout Ratio(Consolidated)

Dividend on
Equity(Consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen%

Year ended March 31, 2019

―

14.00

―

14.00

28.00

3,678

47.2

6.0

Year ending March 31, 2020
Year ending March 31, 2021
(Forecast)

―

14.00

―

14.00

28.00

3,678

44.5

5.8

―

14.00

―

14.00

28.00

43.3

3. Consolidated Earnings Forecasts for the Year Ending March 31, 2021 (April 1, 2020 to March 31, 2021)(% figures represent year-on-year changes)

Sales
Millions of yen

Operating Profit%

Millions of yen

Recurring Profit%

Millions of yen%

Net Income Attributable Net Income
to Owners of the Parent per Share
Millions of yen%

Yen

Year ending March
205,300
4.8
15,0005.5
14,870
2.7
8,460
2.7
64.60
31, 2021(Note) The consolidated business forecast for the fiscal year ending March 2021 is not included the impact of thecoronavirus infections on business performance because it is currently difficult to reasonably predict its influence.
For details, please refer to “1. Overview of business performance, future outlook”.
*Notes(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries affecting the scope of consolidation): No(2) Changes in accounting policies, estimates, and restatements
1) Changes in accounting policies accompanying revisions in accounting standards, etc.: No
2) Changes in accounting policies other than 1): No
3) Changes in accounting estimates: No4) Restatements: No(3) Number of shares issued (common stock)
1) Shares issued at the end of each period (including treasury stock):

FY2020139,679,977 shares FY2019

2) Number of shares of treasury stock at the end of each period:

FY20208,722,345 shares FY2019

8,731,411 shares

3) Average number of shares during the period (cumulative):

FY2020130,954,838 shares FY2019

130,947,058 shares

139,679,977 shares(Note) Board benefit trust shares(BBT) is included in the number of year-end treasury stock. (400,700 stocks at FY3/2020, 410,800 stocks at
FY3/2019)

For treasury shares to be deducted in calculation of the average number of shares during the fiscal year, the Company's

shares (404,039 stocks at FY3/2020, 412,722 stocks at FY3/2019) owned by the BBT are included.

(Reference) Overview of Non-Consolidated Operating Performance
Operating Performance for the Year ended March 31, 2020 (April 1, 2019 to March 31, 2020)(1) Non-Consolidated Operating Results(% figures represent year-on-year changes)
Sales

Operating Profit

Net Income
Attributable to
Owners of the
ParentRecurring Profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Year ended March 31, 2020

9,028

(13.4)

4,106(22.3)

4,119(22.2)

4,026(24.4)

Year ended March 31, 2019

10,420(21.1)

5,287(35.9)

5,295(35.8)

5,325(33.0)Net Income per
Share

Net Income per
Share (Diluted)

Yen

Yen

Year ended March 31, 2020

30.75

-

Year ended March 31, 2019

40.67

-

(2) Non-Consolidated financial Position
Total Assets

Net Assets

Equity Ratio

Net Assets per Share

Millions of yen

Millions of yen%

Yen

Year ended March 31, 2020

97,29040,33941.5

308.03

Year ended March 31, 201997,232

39,98541.1

305.35(Reference) Equity: 40.339 million yen for the Year ended March 31, 2020
39,985 million yen for the Year ended March 31, 2019

*Information Regarding Execution of Quarterly Review ProceduresThis quarterly financial statement is not subject to the quarterly review procedures pursuant to the Financial Instruments and Exchange Act, and the review
procedures of quarterly financial statements pursuant to the Financial Instruments and Exchange Act have not been completed as of the release of thisdocument.

* Explanation regarding the Appropriate Uses of Earnings Forecasts and Other Notes
All earnings forecasts provided within this document are based on the most accurate information available at the time of the release of this document. Actual
results may differ from forecasts due to various factors going forward.

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2020

[Attachment]

Contents
1. Overview of Operating Results and Financial Positionꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 2(1)

Overview of Operating Results ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 2(2)

Overview of Financial Position ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 4(3)

Overview of Cash Flows ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 4(4)

Future Outlookꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 5(5)

Basic Profit Distribution Policies and Dividends for the Current and Next Fiscal Years ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 5

2. Basic Perspective on Selection of Accounting Standardsꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 7
3. Consolidated Financial Statements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 8(1)

Consolidated Balance Sheets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 8(2)

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 10(3)

Statement of Changes in Consolidated Shareholders’ Equity ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 12(4)

Consolidated Statements of Cash Flows ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 14(5)

Notes to the Consolidated Financial Statements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 15(Notes on Premise of Going Concern) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 15(Additional Information) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 15(Segment Information) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 15(Per-Share Information) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 19(Important Subsequent Events) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 19

4. Other ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 20(1)

Changes in Executive Positionsꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 20

1

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2020

1. Overview of Operating Results and Financial Position(1) Overview of Operating Results
Consolidated operating results for the fiscal year under review
During the fiscal year ended March 31, 2020, the Japanese economy was on a path of gradual recovery with
employment and income environments improving until the middle of the year. However, the future path of the economy iscurrently uncertain due to dropoff in personal consumption following the consumption tax hike in October 2019 andincreasingly serious impact from the novel coronavirus pandemic, which extended through the end of the year.
Under these conditions, the TOKAI Group closed the books on the fiscal year ended March 31, 2020, the third year of its
four-year medium-term management plan, Innovation Plan 2020 “JUMP”. The Group conducted business by implementing
strategies aimed at expanding its earnings base, including new customer acquisition and M&A in existing businesses andparticipation in new businesses. The Group continued to implement these strategies under two themes; achieving its visionof becoming a Total Life Concierge (TLC)*1 and ABCIR+S*2.
In the fiscal year ended March 31, 2020, with the success of measures to acquire new customers and increase orders,the Group booked sales of 195,952 million yen (+2.3% year on year) and posted significant growth in all profit categories,
with operating profit of 14,224 million yen (+8.9% year on year), recurring profit of 14,479 million yen (+9.2% year on year),and net income attributable to owners of the parent of 8,241 million yen (+6.0% year on year). Sales reached a record highfor the third consecutive year and all profit lines hit record highs for the second consecutive year.
As of March 31, 2020, the number of continuing customers rose by 101,000 from March 31, 2019, to 3,003,000, andmembers of the TLC Membership Service increased by 91,000 to 896,000.
During the fiscal year under review, through its Gas and Petroleum business, the Group acquired shares in Isesaki Gas
Co., Ltd. (Isesaki, Gunma Prefecture), which operates city gas and LP gas businesses, in April 2019, converting it into an
equity-method affiliate and subsequently forming a business alliance in August of the same year. Additionally, the Groupestablished Nikaho Gas Corporation (Nikaho, Akita Prefecture) in August 2019 and began making preparations to take overcity gas operations from the city of Nikaho. Furthermore, in October 2019, the Group collaborated with TEPCO Energy
Partner, Inc. to establish T&T Energy Co., Ltd., thereby entering the city gas retail business in the Chukyo metropolitan areasurrounding Nagoya, Aichi Prefecture.
Through its Building and Real Estate business, the Group converted Nissan Tri Star Construction, Inc. (Gero, Gifu
Prefecture) into a consolidated subsidiary in September 2019. Using Nissan Tri Star Construction, which runs a strong
community-based general construction business, as a starting point, the Group has begun endeavoring to expand its own
general construction business in the Chukyo metropolitan area.
Through its CATV business, the Group expanded its operating area in Shizuoka Prefecture by acquiring Shioya Limited’s(Mishima, Shizuoka Prefecture) CATV business, which covers the eastern section of Shizuoka Prefecture, in October 2019.
Later, in March 2020, the Group converted Sendai CATV Co., Ltd. (Aoba-ku, Sendai, Miyagi Prefecture), a cable television
provider for the cities of Sendai and Natori in Miyagi Prefecture, into a consolidated subsidiary. By complementing the LP gas
and internet businesses it previously rolled out in the Tohoku area with its CATV business, the Group will expand its businessfoundation in the region.
Through its Information and Communications business, the Group converted software development company AM’s Brain
Inc. (Kita-ku, Okayama, Okayama Prefecture) into a consolidated subsidiary in July 2019, thereby strengthening its
developmental framework in western Japan.
*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.
*2 ABCIR+S: An acronym formed by the first letters of AI, big data, cloud, IoT, robotics, and smartphones. It refers to the Group’s strategies
targeting technological innovation.

2

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2020

Performance by segment was as follows.
(Gas and Petroleum)
Through its LP gas business, the Group focused on customer acquisition, strengthening acquisition efforts and working toprevent contract cancellations in existing service areas while targeting expansion into new service areas. In the fiscal year
ended March 31, 2020, these efforts led to a customer count of 652,000, a substantial year-on-year increase of 23,000.
Meanwhile, sales were 65,235 million yen (-0.5% year on year) due to fluctuations in the procurement prices of LP gas forindustrial use and wholesale LP gas.
In the city gas business, the number of customers rose by 5,000 from March 31, 2019, to 61,000 due in part to M&A.
Despite a drop in the standard selling price due to fuel cost adjustment regulations, sales rose to 12,919 million yen (+4.1%
year on year) primarily thanks to higher equipment sales.
As a result, segment sales were 78,154 million yen (+0.2% year on year) and segment operating profit was 4,907 million
yen (+10.7% year on year).
(Building and Real Estate)
In the Building and Real Estate business, segment sales were 22,383 million yen (+11.4% year on year) and segment
operating profit was 1,379 million yen (+44.5% year on year) thanks to increases in construction and equipment sales andcontributions from M&A.
(CATV)In the CATV business, amid intensifying competition from telecommunications companies, the Group worked to increase
competitiveness and boost customer count, and took steps to prevent contract cancellations. We offered discounts forbroadcasting and communications bundles and packaged services with smartphones in partnership with major mobile
phone carriers. We also stepped up efforts to create community channel programs with a local focus. Additionally, thanks inpart to service area expansion caused by M&A, our broadcasting services customer count increased by 73,000 from March
31, 2019, to 862,000 while our communications services customer count rose by 18,000 to 292,000.
Consequently, segment sales amounted to 31,385 million (+2.9% year on year) and segment operating profit was 4,543
million (+2.3% year on year).
(Information and Communications)
In the Information and Communications business for individual consumers, amid intensifying competition from major
mobile phone carriers, the Group worked to attract customers by expanding service offerings. In addition to the TOKAI-brand
MVNO service LIBMO on its own, it offered Hikari Collaboration bundled with LIBMO. The LIBMO service added 7,000
customers since March 31, 2019 to bring customer count to 48,000, but the number of ISP customers declined by 34,000 to
713,000 (324,000 Hikari Collaboration and 389,000 conventional ISP customers). Consequently, sales came to 28,606
million yen (-7.2% year on year).
In the Information and Communications business for corporate clients, the IT service market was in full swing, and theGroup was certified by a global platform provider and steadily increased the size of its corporate client base, primarily interms of cloud services. These circumstances led to expansion in the Group’s recurring revenue businesses. Due in part to asteady climb in the number of contracted system development projects, sales rose to 23,147 million yen (+13.3% year onyear).
As a result of these factors, segment sales were 51,753 million yen (+1.0% year on year) and segment operating profit
was 2,959 million yen (+14.1% year on year).
(Aqua)In the Aqua (bottled drinking water delivery) business, the Group actively worked to acquire customers mainly for “The giftof delicious water: Ulunom” brand, mainly targeting large-scale commercial facilities. The number of customers increased by
5,000 from March 31, 2019, to 161,000.

3TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2020

As a result, segment sales were 7,416 million yen (+5.9% year on year) and segment operating profit was 401 million yen(-22.9%% year on year).
(Others)
Turning to other businesses, sales in the nursing care business came to 1,243 million yen (+15.6% year on year) as theGroup focused on responding to user need and user frequency increased. In the shipbuilding business, sales amounted to1,480 million yen (-2.6% year on year), reflecting a decrease in work volume for ship repairs. In the bridal events business,sales came to 1,359 million yen (-8.0% year on year), reflecting event and banquet cancellations and wedding ceremony
postponements caused by concerns regarding the spread of the novel coronavirus pandemic.
As a result, segment sales were 4,858 million yen (+1.6% year on year) and segment operating profit was 235 million yen(+8.3% year on year).

(2) Overview of Financial Position
As of March 31, 2020, total assets amounted to 169,972 million yen, up 2,366 million yen from March 31, 2019. This
mainly reflected increases of 1,060 million yen in notes and accounts receivable–trade due in part to the acquisition of new
consolidated subsidiaries; 1,322 million yen in property, plant, and equipment; and 1,700 million in deferred tax assets due inpart to wider differences in valuations of derivatives. These increases offset a decrease of 1,647 million yen in investment
securities within investments and other assets driven by a decline in the mark-to-market valuation difference for investment
securities.
Total liabilities stood at 103,989 million yen, up 278 million yen from March 31, 2019. This primarily reflected an increaseof 1,362 million yen in other current liabilities due in part to wider differences in valuations of derivatives and the booking of a
1,161 million yen in provision for loss on litigation. These factors offset a 2,344 million yen decrease in short-term loans
payable caused by the use of free cash flow for the repayment of interest-bearing debt.
Net assets came to 65,982 million yen, up 2,088 million yen from March 31, 2019. This mainly reflected the payment of
3,678 million yen in dividends of surplus and a decrease of 1,283 million yen in valuation difference on available-for-salesecurities, along with the booking of 8,241 million yen in net income attributable to owners of the parent.

(3) Overview of Cash Flows
As of March 31, 2020, cash and cash equivalents stood at 4,046 million yen, up 27 million yen from March 31, 2019.
Cash flows from each activity during the fiscal year under review and the factors behind them are as follows.

(Cash flows from operating activities)
Net cash provided by operating activities was 22,535 million yen (up 930 million yen year on year). This increase wasattributable to net income before income taxes and the effect of depreciation and amortization expenses (non-cash items).

(Cash flows from investing activities)
Net cash used in investing activities was 12,131 million yen (up 311 million yen year on year), as a result of the purchaseof property, plant and equipment and intangible assets.

(Cash flows from financing activities)
Net cash used in financing activities was 10,375 million yen (down 2,227 million yen year on year). This was due torepayments of borrowings and lease obligations and payments of dividends.

4

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2020

Below is a summary of major cash flow indicators.
Year ended
Year ended
Year ended
March 31, 2016 March 31, 2017 March 31, 2018
Equity ratio (%)
Equity ratio on amarket-value basis (%)
Ratio of interest-bearing
debt to cash flow(times)Interest coverage ratio(times)(Notes) Equity ratio:
Equity ratio on a market-value basis:

Year ended
Year ended
March 31, 2019 March 31, 2020

25.6

34.5

36.3

37.4

38.0

41.4

67.4

85.0

71.8

72.2

3.3

2.0

2.4

2.3

2.1

29.3

48.9

46.6

58.2

72.3

Shareholders’ equity/Total assets
Total value of shares at market price/Total assets

Ratio of interest-bearing debt to cash flow: Interest-bearing debt/Cash flow from operating activities
Interest coverage ratio:

Cash flow from operating activities/Interest payments* All financial indicators are calculated on a consolidated basis.
* Market capitalization is based on the year-end closing share price multiplied by the number of shares outstanding at year-end(excluding treasury stock).
* Operating cash flow is based on cash flows from operating activities in the consolidated statements of cash flows. Interestbearing debt covers bonds payable and loans payable in the consolidated balance sheets. Interest payments are based on theinterest paid amounts shown in the consolidated statements of cash flows.

(4) Future Outlook
Moving forward, the Group will continue striving to fulfill its vision of becoming a TLC that is capable of providing a wide
range of daily life-related infrastructure, including gas, internet, broadcasting, Aqua, and security services, while aiming to
expand its businesses and strengthen their earning capacities.
However, the worldwide spread of the novel coronavirus pandemic has forced the Japanese government to declare astate of emergency and issue requests for temporary business closures as well as warnings urging people to refrain fromgoing outdoors. These factors have had a wide impact that has extended to both economic activity and private civilian life.
Even under these circumstances, the Group is providing essential infrastructure-related services to the general consumer
and believes it is unlikely to be impacted by factors such as cooldown in consumer sentiment. However, the Group has alsodecided that it is currently infeasible to make rational estimations regarding impact stemming from future events. Meanwhile,
the Group further decided that it can not currently calculate the scale of future impact on corporate services because it ispresently not able to make predictions concerning how it will serve client companies, as it is not capable of rationallyprojecting how long efforts aimed at preventing the spread of the pandemic will remain in effect at this time.
Due to these factors, the Group has not factored impact from the novel coronavirus pandemic into its consolidated
earnings forecast for the fiscal year ending March 31, 2021, which is explained in detail below:
Consolidated earnings forecast for the fiscal year ending March 31, 2021
Sales

205,300 million yen (+4.8% year on year)

Operating profit

15,000 million yen (+5.5% year on year)

Recurring profit

14,870 million yen (+2.7% year on year)

Net income attributable to owners of the parent

8,460 million yen (+2.7% year on year)

These earnings forecasts are based on information currently available to the Company. Actual results may differ fromforecasts due to a variety of factors.

(5) Basic Profit Distribution Policies and Dividends for the Current and Next Fiscal Years
The Company’s basic policy on profit distribution is to maintain stable dividends that reflect consolidated earnings.
For the fiscal year ended March 31, 2020, we have set annual dividends of 28 yen per share, comprising an interim

5TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2020

dividend of 14 yen and a year-end dividend of 14 yen.
Similarly, for the fiscal year ending March 31, 2021, we target annual dividends of 28 yen per share, comprising interim
and year-end dividends of 14 yen each.

6

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2020

2. Basic Perspective on Selection of Accounting Standards
As the Group conducts its operations primarily in Japan, with little overseas activity, we intend to comply withJapanese Generally Accepted Accounting Principles (J-GAAP) for the foreseeable future. However, we will consider the
adoption of International Financial Reporting Standards (IFRS), taking into account various situations in Japan andoverseas.

7

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2020

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)

As of March 31, 2019

As of March 31, 2020

4,164

4,629

24,79825,859

4,173

3,679

Work in process

660

944

Raw materials and supplies

865

930

Other

8,264

8,623

Allowance for doubtful accounts

(419)

(399)

42,50644,268AssetsCurrent assets
Cash and deposits
Notes and accounts receivable–trade
Merchandise and finished goods

Total current assets
Non-current assets
Property, plant and equipment

121,393

127,784

Accumulated depreciation(87,636)(93,528)

Buildings and structures, net

33,75634,256

Buildings and structures

96,983

101,487

Accumulated depreciation(73,391)(77,714)

Buildings and structures, net

23,592

23,773

Land

22,921

23,068

Leased assets

24,12424,241

Accumulated depreciation(11,863)(11,536)

Leased assets, net

12,26012,704217

357

15,027

15,489(10,745)(11,297)

4,281

4,192

97,03098,353

5,044

5,125

544

671

Other

5,539

5,034

Total intangible assets

11,128

10,831

7,995

6,347

58

74

Deferred tax assets

2,085

3,786

Net defined benefit asset

2,365

1,601

Other

4,819

5,085

Allowance for doubtful accounts

(386)

(377)

Total investments and other assets

16,937

16,518125,097

125,7032

1

167,606

169,972

Machinery, equipment and vehicles

Construction in progress
Other, net
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Leased assets

Investments and other assets
Investment securities
Long-term loans receivable

Total non-current assets
Deferred assets
Total assets

8

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2020

(Millions of yen)
As of March 31, 2019

As of March 31, 2020

Liabilities
Current liabilities
Notes and accounts payable–trade

15,021

15,034

Short-term loans payable

22,26519,921

Current portion of bonds

168

118

lease obligations

3,533

3,792

Income taxes payable

3,491

2,244

Provision for bonuses

1,285

1,358

-

1,161

Provision for loss on litigation

419

424

Other

15,19916,562

Total current liabilities

61,38560,617

Other accruals

Non-current liabilities

230

112

27,94028,121

Lease obligations

9,961

10,758Other accruals

149

238

Net defined benefit liability

719

876

Other

3,325

3,265

Total non-current liabilities

42,32543,372

103,711

103,989

Capital stock

14,00014,000Capital surplus

25,52725,542

Bonds payable
Long-term loans payable

Total liabilities
Net assets
Shareholders’ equity

Retained earnings

21,863

26,426

Treasury stock(2,222 )(2,221)

Total shareholders’ equity

59,167

63,746

Valuation difference on available-for-sale securities

1,573

290

Deferred gains (losses) on hedges

(319)

(883)

Foreign currency translation adjustment

(10)

(7)

Remeasurements of defined benefit plans

2,217

1,449

Total accumulated other comprehensive income

3,460

848

Non-controlling interests

1,267

1,387

Total net assets

63,89465,982

167,606

169,972

Accumulated other comprehensive income

Total liabilities and net assets

9

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2020

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020

Sales

191,600

195,952

Cost of sales

115,441

116,662

Gross profit

76,15979,289Selling, general and administrative expenses

63,10165,065

Operating profit

13,057

14,224

Interest income

911

Dividend income

181

194

Commission fee

42

36

Insurance income

33

94

Share of profit of entities accounted for using equity method

4

85

Other

382

229

Total non-operating profit

655

652

Interest expenses

360

301

Other

92

95

Total non-operating expenses

453

397

13,25914,479

1

16

-

182

177

162

Subsidy income

5－Gain on sales of investment securities

0

315

183

677

4

3

Loss on retirement of non-current assets

821

819

Impairment loss

73

118

-

17

50

39

-

1,161

30

65

Total extraordinary losses

1,029

2,225

Net income before income taxes

12,413

12,930

Income taxes (current)

4,287

5,142

Income taxes (deferred)

209

658)

Total income taxes

4,496

4,484

Net income

7,917

8,445

144

204

7,772

8,241

Non-operating profit

Non-operating expenses

Recurring profit
Extraordinary income
Gain on sales of non-current assets

Transmission line facility subsidies

Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets

Loss on sales of investment securities
Loss on valuation of investment securities
Gain on step acquisitions
Other

Net income attributable to non-controlling interests
Net income attributable to owners of the parent

10TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2020

(Consolidated Statements of Comprehensive Income)(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020

7,917

8,445

Valuation difference on available-for-sale securities(974)(1,283)

Deferred gains (losses) on hedges

(319)

(563)

3

1

(489)

(768)

(9)

2

(1,789)(2,611)

6,127

5,834

5,982

5,629

145

204

Net income
Other comprehensive income

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using
the equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

11

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2020

(3) Statement of Changes in Consolidated Shareholders’ Equity
Year ended March 31, 2019 (April 1, 2018–March 31, 2019)(Millions of yen)
Shareholders’ equity
Capital stock

Balance at beginning of period

14,000Capital surplus

25,525Retainedearnings

Total shareholders’

Treasury stock

equity△2,223

17,76855,069Change during the year
Dividends of surplus(3,678)Net income attributable to owners of the parent

7,772△3,678
7,772

Acquisition of treasury shares
Disposition of treasury shares

0

(0)

(0)

1

3

Purchase of shares of consolidated subsidiaries-

Net changes of items other than shareholders' equity
Total change during the year
Balance at end of period

－

2

4,094

0

4,097

14,00025,527

21,863(2,222)

59,167

Accumulated other comprehensive income
Valuation
Foreign
Non-controlling
Deferred gains
Remeasurements Total accumulateddifference on
currencyinterests
or losses onof defined benefit other comprehensive
available-for-saletranslation
hedgesplans
incomesecurities
adjustment
Balance at beginning of
period

2,548

－

△3

2,706

5,250

1,130

Total net
assets61,450Change during the year
Dividends of surplus(3,678)Net income
attributable to ownersof the parent

7,772

Acquisition of treasury
shares(0)

Disposition of treasury
shares3

Purchase of shares of
consolidated
subsidiaries-

Net changes of items
other thanshareholders' equity

(974)

(319)

(6)

(489)

(1,790)137(1,652)

Total change during the
year

(974)

(319)

(6)

(489)

(1,790)

137

2,444

Balance at end of period

1,573

(319)

(10)

2,217

3,460

1,267

63,894

12

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2020

Year ended March 31, 2020 (April 1, 2019–March 31, 2020)(Millions of yen)
Shareholders’ equity
Capital stock

Capital surplus

14,000

Balance at beginning of period

25,527Retainedearnings

Total shareholders’

Treasury stock

equity△2,222

21,86359,167

Change during the year
Dividends of surplus(3,678)(3,678)Net income attributable to owners of the parent

8,241

8,241

Acquisition of treasury shares
Disposition of treasury shares

3

Purchase of shares of consolidated subsidiaries

11

(1)

1)

2

6
11

Net changes of items other than shareholders' equity
Total change during the year
Balance at end of period

－

15

4,563

1

4,579

14,00025,542

26,426△2,221

63,746

Accumulated other comprehensive income
Valuation
Foreign
Non-controlling
Deferred gains
Remeasurements Total accumulateddifference on
currencyinterests
or losses onof defined benefit other comprehensive
available-for-saletranslation
hedgesplans
incomesecurities
adjustment
Balance at beginning of
period

1,573

319)

10)

2,217

3,460

1,267

Total net
assets63,894

Change during the year
Dividends of surplus

3,678)Net income
attributable to ownersof the parent

8,241

Acquisition of treasury
shares1)

Disposition of treasury
shares

6

Purchase of shares of
consolidated
subsidiaries

11

Net changes of items
other thanshareholders' equity

1,283)

563)

3

768)

2,611)

119

2,491)

Total change during theyear

1,283)

563)

3

768)

2,611)

119

2,088

Balance at end of period

290

883)

7)

1,449

848

1,387

65,982

13

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2020

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020

Cash flows from operating activities
Net income before income taxes and minority interests

12,413

12,930Depreciation

13,96014,337

Amortization of goodwill

1,130

1,089

73

118

-

1,161

Increase in net defined benefit asset and liability

(328

255)

Interest and dividend income

(191)

206)

(Gain) loss on sale of investment securities

(0)

297)

Interest expenses

Impairment loss
Increase (decrease) in provision for loss on litigation

360

301

(Gain) loss on sales of non-current assets

3

12)Loss (gain) on valuation of investment securities

50

39

Loss on retirement of non-current assets

821

819

(1,269)978)(Increase) decrease in inventories

(306)

650

Decrease (increase) in guarantee deposits(550)

1,108)

Increase (decrease) in notes and accounts payable–trade

(673)

459)

Increase (decrease) in accounts payable–other

(724)

198

Increase (decrease) in notes and accounts payable

Increase (decrease) in accrued consumption taxes

362

438

Other

(283)

883)

Subtotal

24,84727,884

Income taxes paid

(3,241)

5,348)Net cash provided by operating activities

21,60522,535242

258

Cash flows from investing activities
Interest and dividend income received

633
(313)

13)

6

652

(12,423)

11,592)

Proceeds from sales of tangible and intangible assets

214

334

Payments for retirement of non-current assets

(157)

176)

Proceeds from contribution received for construction

441

333

(202)

1,968)

－

373)

－

189)

(200)

－

25

64

(234)

95)

(12,443)

12,131)

Purchase of securities
Proceeds from sales of securities
Purchase of tangible and intangible assets

Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Payments for transfer of business
Loan advances
Collection of loans receivable
Other
Net cash provided by (used in) in investing activities

14

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2020

(Millions of yen)
Fiscal Year Ended

Fiscal Year Ended

March 31, 2019

March 31, 2020

Cash flows from financing activities
Interest expenses paid

(371)

311)

Net increase (decrease) in short-term loans payable

1,075

2,788)

Repayments of lease obligations(3,717)3,551)

Proceeds from long-term loans payable

10,5009,500

Repayment of long-term loans payable(11,753)

9,290)

(198)

168)

Payments for acquisition of treasury stock

(0)

1)

Proceeds from disposal of treasury shares

00(3,673)

3,678)(7)

8)

Redemption of bonds

Cash dividends paid
Dividends paid to non-controlling interests

78)

Other

(8,147)

10,375)(0)

1)

Net increase (decrease) in cash and cash equivalents

1,014

27

Cash and cash equivalents at beginning of period

3,004

4,018

Cash and cash equivalents at end of period

4,018

4,046

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

15

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2020

(5) Notes to the Consolidated Financial Statements(Notes on Premise of Going Concern)
There is no relevant information.

(Additional Information)(Litigation)
On January 16, 2020, the Tokyo High Court delivered an appellate ruling in the damage suit filed by consolidated
subsidiary TOKAI Communications Corporation against Hitachi Solutions, Ltd. and the subsequent damage counterclaim
filed by the latter against the former. The ruling stipulates that TOKAI Communications Corporation pay 766 million yen incompensation for damages, as well as late payment charges, to Hitachi Solutions, Ltd.
TOKAI Communications Corporation objects to this ruling and filed a petition for acceptance of a final appeal withJapan’s Supreme Court on February 3, 2020. However, the Company has recorded 1,161 million yen in provision forloss on litigation as an extraordinary loss in preparation for possibility that the Supreme Court upholds the ruling of theTokyo High Court.

(Segment Information)
Segment Information

1. Overview of Reportable Segments
The Group’s reportable segments are constituent units of the Group for which discrete financial information can beobtained, and for which the Board of Directors can decide on the allocation of management resources and evaluate
operating performance. Consequently, the segments are principal categories that allow for regular consideration.
The Group establishes operational headquarters by product and service. Each operational headquarters drafts
comprehensive strategies for the products and services it handles, and conducts business activities accordingly.
Consequently, in principle the product- and service-specific operational headquarters that form this base comprise theGroup’s five reportable segments: Gas and Petroleum, Building and Real Estate, CATV, Information andCommunications, and Aqua.
In the Gas and Petroleum segment, the Group sells liquefied petroleum (LP) gas, liquefied natural gas, other highpressure gases, and petroleum products; supplies city gas; sells relevant products; performs construction of gas- andpetroleum-related facilities and equipment; and provides security services.
In the Building and Real Estate segment, the Group constructs residential facilities and other buildings; develops,
sells, and leases real estate; sells construction materials and residential equipment; installs pre-furnished equipment andappliances in residential facilities; and operates home renovation business.
In the CATV segment, the Group operates broadcasting and internet connectivity utilizing CATV networks.
In the Information and Communications segment, the Group develops computer software; processes information;
provides internet connectivity; sells communications equipment; and performs agent operations.
In the Aqua segment, the Group produces and sells bottled drinking water.

2. Method of Calculation of Amounts in Sales, Profit and Losses, Assets, Liabilities, and Other Items for
Each Reportable Segment
The accounting methods used in reportable business segments are the same as specified in “Significant Matters
Forming the Basis of Preparing the Consolidated Financial Statements.”
Profit for reportable segments is based on operating profit, and intra-segment sales and transfers are conducted at
prevailing market prices.

16

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2020

3. Information Related to Sales, Profit and Losses, Assets, Liabilities, and Other Items for Each
Reportable Segment
For the fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019)
OthersReportable segments

Gas and Building
Petrole- and Real CATV
Estateum
Sales
Sales to externalcustomers
Intra-segment sales
and transfer
Subtotal
Segment profit (loss)
Segment assets
Other items
Depreciation
Amortization of goodwill
Increase in property,
plant and equipment
and intangible assets

Information andCommunications

Note 1Aqua

77,977

20,09030,511

51,234

231

1,108

733

3,155

78,208
4,434
62,10521,199954
24,306

31,244
4,442
34,95354,3902,593
31,948

4,328
454

681
1

5,091
661

2,809
6

543
—

5,273

170

6,886

2,385

602

Total

(Millions of yen)Amount in
Adjustments consolidated
Note 2statements ofincome Note 3

Total

7,004 186,818

4,781

191,600—

191,600

5,409

171

5,580

5,580)—

7,185 192,227
520 12,945
4,845 158,159

4,953
217
5,259

197,180
13,162
163,419

5,580)
105)
4,187

191,600
13,057
167,606

13,453
1,124

90
6

13,543
1,130

416
—

13,9601,130

15,319212

15,531461

15,993180(Notes) 1. The “Others” category is a business segment not included in the reportable segments. This category includes businesses
such as bridal events, ship repair, insurance, and nursing care.
2. Adjustments are as follows:(1) Adjustments to segment profit (loss) are eliminations due to intra-segment transactions.
(2) Upward adjustments in segment assets, depreciation, property, plant and equipment, and intangible assets are due toincreases in companywide assets, depreciation, property, plant and equipment, and intangible assets that are notallocated to individual reportable segments.
3. Segment profit (loss) is adjusted to match operating profit in the consolidated statements of income.

For the fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)
OthersReportable segments

Gas and Building
Petrole- and Real CATV
Estateum
Sales
Sales to externalcustomers
Intra-segment sales
and transfer
Subtotal
Segment profit (loss)
Segment assets
Other items
Depreciation
Amortization of goodwill
Increase in property,
plant and equipment
and intangible assets

Information andCommunications

Note 1Aqua

78,154

22,38331,38551,753

171

1,019

665

3,805

78,326
4,907
62,286

23,403
1,379
26,35432,0504,543
37,52355,5592,959
31,329

4,420
402

691
24

5,091
617

3,038
20

610
—

5,219

422

6,759

2,469

513

Total

(Millions of yen)Amount in
Adjustments consolidated
Note 2statements ofincome Note 3

Total

7,416 191,094

4,858

195,952—

195,952

5,855

166

6,021

(6,021)—

7,609 196,949
401 14,191
4,984 162,477

5,024
235
4,832

201,973
14,426167,309(6,021)
(201)
2,663

195,952
14,224
169,972

13,851
1,065

100
24

13,952
1,089

384
—

14,337
1,089

15,383215

15,599224

15,824193(Notes) 1. The “Others” category is a business segment not included in the reportable segments. This category includes businesses
such as bridal events, ship repair, insurance, and nursing care.
2. Adjustments are as follows:(1) Adjustments to segment profit (loss) are eliminations due to intra-segment transactions.
(2) Upward adjustments in segment assets, depreciation, property, plant and equipment, and intangible assets are due toincreases in companywide assets, depreciation, property, plant and equipment, and intangible assets that are notallocated to individual reportable segments.
3. Segment profit (loss) is adjusted to match operating profit in the consolidated statements of income.

17

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2020

Reference Information
For the fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019)
1. Information by Product and Service
This information is omitted because the same information is disclosed in the Segment Information section.

2. Information by Region(1) Sales
This information is omitted because sales to customers in Japan account for more than 90% of sales in the
consolidated statements of income.

(2) Property, Plant and Equipment
This information is omitted because property, plant and equipment in Japan account for more than 90% of property,
plant and equipment in the consolidated balance sheets.

3. Information by Major Customer
This information is omitted because no customers account for 10% or more of sales in the consolidated statements ofincome.

For the fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)
1. Information by Product and Service
This information is omitted because the same information is disclosed in the Segment Information section.

2. Information by Region(1) Sales
This information is omitted because sales to customers in Japan account for more than 90% of sales in the
consolidated statements of income.

(2) Property, Plant and Equipment
This information is omitted because property, plant and equipment in Japan account for more than 90% of property,
plant and equipment in the consolidated balance sheets.

3. Information by Major Customer
This information is omitted because no customers account for 10% or more of sales in the consolidated statements ofincome.

Information Related to Impairment Losses of Non-current Assets by Reportable Segment
For the fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019)(Millions of yen)

Impairment losses

Gas andPetroleum

Building andReal Estate

52—

Information
andCATV
Communications
—
20

Aqua

Corporate or
elimination

Others
—

—

Total

—

73

For the fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)(Millions of yen)

Impairment losses

Gas andPetroleum

Building andReal Estate——

Information
andCATV
Communications
—
—

18

Aqua

Others—118

Corporate or
elimination
—

Total
118

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2020

Information Related to Amortization of Goodwill and Unamortized Balance by Reportable Segment
For the fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019)(Millions of yen)Amortization forthe year ended
March 31, 2019
Balance as ofMarch 31, 2019

Information
andCommunications

Corporate or
elimination

Gas andPetroleum

Building andReal Estate

454

1

661

6

—

6

—

1,130

1,086

86

3,667

128

—

75

—

5,044

CATV

Aqua

OthersTotal

For the fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)(Millions of yen)Amortization forthe year ended
March 31, 2020
Balance as ofMarch 31, 2020

Information
andCommunications

Corporate or
elimination

Gas andPetroleum

Building andReal Estate

402

24

617

20

—

24

—

1,089

1,072

148

3,581

204

—

118

—

5,125

CATV

Aqua

Others

Total

Information on Negative Goodwill Generated for Each Reportable Segment
For the fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019)
There is no relevant information.

For the fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)
This information is omitted due to low material importance.

(Per-Share Information)
Year ended March 31, 2019Year ended March 31, 2020

(April 1, 2018 to March 31, 2019)(April 1, 2019 to March 31, 2020)

Net assets per share (yen)478.26493.26

Basic earnings per share (yen)

59.36

62.93

(Notes) 1. No data for diluted earnings per share is provided, since no dilutive shares exist.
2. The standards used to calculate basic earnings per share are as follows.
Year ended March 31, 2019 Year ended March 31, 2020
(April 1, 2018 to(April 1, 2019 toMarch 31, 2019)

March 31, 2020)

Net income attributable to owners of the parent (millions of yen)

7,772

8,241

Amounts not attributable to common shareholders (millions of yen)

—

—

7,772

8,241

130,947

130,954

Net income attributable to owners of the parent available tocommon shareholders (millions of yen)
Average number of shares outstanding during the period(thousands of shares)

3. The number of shares of common stock at the end of the fiscal year used in the calculation of net assets per share excludes
the Company’s shares held by the Trust & Custody Service Bank Ltd. (Trust Account E) (410,800 shares for the fiscal year
ended March 31, 2019; 400,700 shares for the fiscal year ended March 31, 2020). The average number of shares
outstanding of common stock during the period used in the calculation of basic earnings per share excludes the Company’s
shares held by the Trust & Custody Service Bank Ltd. (Trust Account E) (412,722 shares for the fiscal year ended March 31,
2019; 404,039 shares for the fiscal year ended March 31, 2020).

(Important Subsequent Events)
There is no relevant information.

19

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2020

4. Other(1) Changes in Executive Positions
1) Changes in President & CEO
No items to report2) Other Changes in Executive Positions (Scheduled for June 26, 2019)No items to report20