Consolidated Financial Results for the Third Quarter of the
Fiscal Year Ending March 31, 2021 [Japanese GAAP]
January 28, 2021
Company name: TOKAI Holdings Corporation
Stock listing:Tokyo Stock Exchange
Stock code:
3167
URL:
https://tokaiholdings.co.jp
Representative:
Katsukiho Tokita, President & CEO
Contact:
Kuniyoshi Muramatsu, Managing Executive Officer, General Manager of Administrative
Headquarters
Telephone: +81-54-275-0007
Scheduled date of filing quarterly report:
February 12, 2021
Scheduled date of dividend payment:
Supplementary materials on quarterly financial results:
Yes
Quarterly financial results briefing:No(Figures are rounded to the nearest million yen)

1. Consolidated Financial Results for the Nine-months Ended December 31, 2020
(April 1, 2020 to December 31, 2020)(1) Consolidated Operating Results (cumulative)(% figures represent year-on-year changes)

Sales

Operating Profit

Millions of yen%

Millions of yen

Quarterly Net
IncomeAttributable to
Owners of the
ParentRecurring Profit
Millions of
yen

%

%

Millions of yen%

Nine-months Ended
139,792
9,901
9,929
4.8
5,936
-1.2
6.7
December 31, 2020
Nine months Ended
141,557
9,278
9,478
30.8
5,103
2.6
31.8
December 31, 2019
(Note) Comprehensive income: 8,538 million yen in the Nine-months Ended December 31, 2020 (53.0%)
5,579 million yen in the Nine months Ended December 31, 2019 (199.3%)

16.3
28.6

Quarterly Net Income per Share(Diluted)

Quarterly Net Income per Share
Yen

Yen

Nine-months Ended December 31, 2020

45.33

-

Nine months Ended December 31, 2019

38.97

-

(2) Consolidated Financial Position
Total Assets

Net Assets

Millions of yen

Millions of yen

Equity Ratio%

Nine-months Ended December 31, 2020

172,946

70,841

40.1

Year ended March 31, 2020

169,972

65,982

38.0(Reference) Equity: 69,335 million yen for the Nine-months Ended December 31, 2020
64,596 million yen for the year ended March 31, 2020

2. Dividends
End of Q1

End of Q2

Annual Dividend
End of Q3

Year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ending March 31, 2020

―

14.00

―

14.00

28.00

Year ending March 31, 2021

―

14.00
―

14.00

28.00

Year ending March 31, 2021
(Forecast)(Note) Revisions to most recently announced dividend forecasts: No

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 ofyen%Operating Profit

Recurring Profit

Net Income
Attributable to
Owners of the
ParentMillions ofyenMillions ofyen%Millions of
yen

%

Yen

2.7

8,460

2.7

64.60

%

Year ending March
205,300
4.8
15,0005.5
14,87031, 2021(Note) Revisions to most recently announced earnings forecasts: No

Net Income
per Share

業績予想欄については、上場会社各社の実情に応じて、開示対象項目や開示対象期間の追加又は削除、開示形式の変更を行うことが可能です。
*Notes(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries affecting the scope of consolidation): No(2) Application of special accounting procedures in the preparation of quarterly consolidated financial statements: No(3) 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): No3) Changes in accounting estimates: No4) Restatements: No(4) Number of shares issued (common stock)
1) Shares issued at the end of each period (including treasury stock):

Q3 FY3/2021

139,679,977 shares FY3/2020

139,679,977 shares

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

Q3 FY3/2021

8,713,304 shares FY3/2020

8,722,345 shares

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

Q3 FY3/2021

130,962,791 shares Q3 FY3/2020

130,9453,891 shares(Note) Board benefit trust shares(BBT) is included in the number of year-end treasury stock.(391,300 stocks at Q3 FY3/2021, 400,700
stocks at FY3/2020) And the company shares held in ESOP trust accounts are included in the treasury stock, which is subtracted
from calculations of the average number of shares during the period (395,436 shares for the Nine-months Ended December 31,
2020; 405,144 shares for the Nine months Ended December 31, 2019).

* Quarterly financial results not covered by quarterly review* 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 thisdocument. Actual results may differ from forecasts due to various factors going forward.

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017

[Attachment]
Contents
1. Qualitative Information on Financial Results for the Period Under Review(1)

Explanation of Consolidated Operating Performance ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 2(2)

Explanation of Consolidated Financial Position ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 4(3)

Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 5

2. Quarterly Consolidated Financial Statements and Notes(1)

Quarterly Consolidated Balance Sheets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 6(2)

Quarterly Consolidated Statements of Income, Consolidated Statements of Comprehensive Income 8(3)

Quarterly Consolidated Statements of Cash Flowsꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 10(4)

Notes to Quarterly Consolidated Financial Statementsꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 11(Notes on Going Concern Assumptions) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 11(Notes to Significant Changes in Shareholders’ Equity)ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 11(Additional Information) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 11(Segment Information, etc.) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 12

1

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017

1. Qualitative Information on Financial Results for the Period Under Review(1) Explanation of Consolidated Operating Performance
In the first nine months of the fiscal year ending March 31, 2021, the Japanese economy deteriorated rapidly as the novel
coronavirus (COVID-19) pandemic caused stagnation in economic activity. Signs of improvement in personal consumption
continue to be seen thanks primarily to various economic measures taken by the government in response to the pandemic.
However, future outlook remains extremely uncertain due in part to the January 2021 declaration of an additional state of
emergency in response to a third wave of COVID-19 infections.
Under these conditions, the TOKAI Group is setting into motion the fourth and final year of its medium-term management plan,
Innovation Plan 2020 “JUMP.” When conducting sales activities, we have implemented meticulous and careful measures thatprioritize COVID-19 counterstrategies, customer and employee safety and security, and infection prevention. In tandem withthese efforts, we have established new points of contact with customers by proactively adopting indirect sales methods that do
not involve in-person meetings, including online business meetings and transmission of information. As a result, continuing
customers had risen to 3,063,000 as of December 31, 2020, up 60,000 compared to its level on March 31, 2020. Meanwhile,
TLC Membership Service members numbered 958,000, up 62,000.
As a result of these circumstances, the Group recorded sales of 139,792 million yen (-1.2% year on year) in the nine months
ended December 31, 2020. The decline in sales occurred despite an increase in customer count due in part to a decrease in gas
selling prices associated with a drop in procurement prices and lower renovation and facility equipment sales resulting from the
COVID-19 pandemic. Meanwhile, all profit lines increased and achieved record-highs for the third consecutive year, thanks
primarily to a rise in customer count; operating profit was 9,901 million yen (+6.7% year on year), recurring profit was 9,929
million yen (+4.8% year on year), and net income attributable to owners of the parent finished at 5,936 million yen (+16.3% year
on year).
The Group is aiming to expand its earnings base by broadening its business area. During the nine months ended December
31, 2020, we pursued this target by establishing new sales bases for the LP gas business in Kasugai, Aichi Prefecture andYokkaichi, Mie Prefecture in June 2020. Through our Construction, Equipment, and Real Estate segment, we acquired shares in
Chuo Denki Koji Co., Ltd., an electrical construction company in Nagoya, Aichi Prefecture, and converted it into a consolidated
subsidiary in August 2020. Later, in November of the same year, we added another consolidated subsidiary by acquiring sharesin building maintenance business operator Inoue Technica Co., Ltd., which is located in Numazu, Shizuoka Prefecture. Moving
forward, the Group will expand its operations by branching off into new areas and broadening its business domains. In addition tothis move, we converted MIEN TRUNG GAS JOINT STOCK COMPANY and V-GAS PETROLEUM CORPORATION, twocompanies located in the Socialist Republic of Vietnam, into equity-method affiliates and successfully entered the Vietnamese LP
gas market.
Performance by segment is indicated below. Effective from the start of the fiscal year ending March 31, 2021, we havechanged the names of our reportable segments as follows: the “Gas and Petroleum” segment has become the “Energy”
segment, and the “Building and Real Estate” segment has been renamed the “Construction, Equipment, and Real Estate”
segment. These name changes do not accompany any impact on segment performance.
(Energy)In the LP gas business, despite restrictions on in-person sales activities, customer count rose by 24,000 during the ninemonths ended December 31, 2020, reaching 676,000 customers thanks to the application of telemarketing and online sales
activities. Notwithstanding the rise in customer count, sales declined to 45,135 million yen (-1.1% year on year) due to adecrease in selling prices linked with a drop in procurement prices and a lower volume of commercial gas sold.
In the city gas business, the number of customers was 61,000, mostly unchanged from its level as of March 31, 2020.
However, sales fell to 8,301 million yen (-13.3% year on year) due in part to the same decline in selling prices (associated withthe gas rate adjustment system) that affected the LP gas business.
As a result, segment sales were 53,437 million yen (-3.2% year on year) and segment operating profit was 2,996 million yen

2TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017(+38.9% year on year).
(Construction, Equipment, and Real Estate)
In the Construction, Equipment, and Real Estate segment, sales were 14,815 million yen (-0.7% year on year) and operating
profit came to 539 million yen (-24.0% year on year). The decline in performance was primarily due to lower renovation andfacility equipment sales resulting from a delay in sales activities caused by the COVID-19 pandemic.
(CATV)
Through its CATV business, the Group carefully and steadily maintained its sales activities in accordance with the actual
circumstances facing each region as a community-based service provider amid the COVID-19 crisis. As a result, ourbroadcasting services customer count increased to 871,000, up 10,000 from its level as of March 31, 2020, and ourcommunications services customer count rose by 25,000 to 317,000.
Consequently, segment sales amounted to 24,994 million yen (+6.7% year on year) and segment operating profit was 3,740
million yen (+9.0% year on year).
(Information and Communications)
In the Information and Communications business for individual customers, the Group responded to intensifying competition
from major mobile phone carriers and increasing communications services demand associated with the COVID-19 pandemic byenhancing set plans accompanying the Hikari Collaboration (including a high 30 GB storage capacity plan for LIBMO, a TOKAIbrand MVNO service) and acquiring customers through the Internet. Consequently, our total number of individual customers
increased by a net 2,000 compared to March 31, 2020, after declining for the previous six fiscal years, and finished at 763,000(conventional ISP customers fell by 2,000 to 711,000, and LIBMO customers rose by 4,000 to 52,000). As a result, sales were
19,801 million yen (-8.6% year on year).
Through its Information and Communications business for corporate clients, the Group achieved progress in the field of cloudservices and captured demand associated with teleworking, both factors that led to recurring-revenue business expansion. As aresult, sales came to 18,030 million yen (+5.0% year on year).
Due to the above factors, segment sales were 37,831 million yen (-2.6% year on year) and segment operating profit was 2,151
million yen (-11.4% year on year).
(Aqua)The number of customers in the Aqua (bottled drinking water delivery) business was 162,000, up 1,000 from the number as ofMarch 31, 2020 despite impact from self-imposed operational limitations at shopping malls and other commercial facilities. At thesame time, the number of bottles sold per customer rose as a result of demand from consumers who refrained from goingoutdoors in response to the COVID-19 pandemic.
As a result, segment sales were 5,778 million yen (+3.1% year on year), but segment operating profit came to 333 million yen(-14.2% year on year), declining due primarily to a rise in logistical costs.

3

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017

(Others)
Turning to other businesses, sales in the nursing care business totaled 995 million yen (+9.9% year on year) thanks tocontributions from Tender Co., Ltd. (Gero, Gifu Prefecture), which became a consolidated subsidiary during the previous fiscal
year. Sales in the shipbuilding business fell to 991 million yen (-5.8% year on year) as a result of a decrease in the number ofvessels repaired. Sales in the bridal events business declined to 322 million yen (-68.8% year on year) due to wedding ceremony
postponements and the application of self-restraint associated with the holding of banquets in response to the COVID-19
pandemic.
As a result of these factors, segment sales were 2,934 million yen (-17.9% year on year) and segment operating loss was 120
million yen (versus operating profit of 186 million yen in the same period of the previous fiscal year).
(2) Explanation of Consolidated Financial Position
1) Assets, Liabilities, and Net Assets
As of December 31, 2020, total assets amounted to 172,946 million yen, up 2,973 million yen from March 31, 2020. This
increase occurred despite a 3,259 million-yen decrease in notes and accounts receivable–trade and was primarily due to anincrease of 824 million yen in work in process caused mainly by a rise in the number of ongoing construction projects; a spikeof 1,218 million yen in other current assets occurring mostly as a result of an increase in derivative valuations; a rise of 1,612
million yen in property, plant, and equipment resulting mainly from business acquisition; and an upturn of 1,344 million yen in
the “other” account under “investments and other assets” caused primarily by the acquisition of shares in affiliated companies.
Total liabilities stood at 102,104 million yen, down 1,885 million yen compared to March 31, 2020. This decline occurred
despite an increase of 2,721 million yen in long-term loans payable and was primarily due to a decrease of 1,694 million yen inincome taxes payable caused mostly by the payment of income taxes; a 1,161 million-yen drop in provision for loss on litigation
resulting from the settlement of legal proceedings; and a downturn of 1,584 million yen in the “other provision” account under“current liabilities” stemming mainly from the payment of bonuses.
Net assets totaled 70,841 million yen, up 4,858 million yen from March 31, 2020. This mainly reflected the booking of 5,936
million yen in net income attributable to owners of the parent and a 2,114 million yen increase in deferred gains on hedges,
which were partially offset as the Company issued a 3,678 million-yen dividends of surplus.
2) Cash Flows
As of December 31, 2020, cash and cash equivalents stood at 4,912 million yen, up 866 million yen from March 31, 2020.
Cash flows from all activities during the period under review and the factors behind them are as follows:(Cash flows from operating activities)
Net cash provided by operating activities was 19,402 million yen, up 3,925 million yen from the same period of the previous
fiscal year. Cash inflows stemming primarily from net income before income taxes, a decrease in notes and accounts
receivable–trade, and depreciation (a non-cash item) exceeded cash outflows caused mainly by income taxes paid and adecrease in notes and accounts payable–trade.
(Cash flows from investing activities)
Net cash used in investing activities was 14,672 million yen, up 4,989 million yen from the same period of the previous fiscal
year. The primary uses of cash were the purchase of tangible and intangible assets, the purchase of shares of subsidiaries andassociates, and payments for the acquisition of businesses and purchase of shares of subsidiaries resulting in changes in the
Company’s scope of consolidation.
(Cash flows from financing activities)
Net cash used in financing activities was 3,863 million yen, down 915 million yen from the same period of the previous fiscal
year. Primary contributing factors were repayments of loans payable and lease obligations and dividend payments thatexceeded proceeds from long-term loans payable.

4

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017(3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information
Earnings results for the nine months ended December 31, 2020 were generally in line with forecast, and the Group maintains
its consolidated earnings forecast for the fiscal year ending March 31, 2021, which was announced on May 8, 2020.
The earnings forecast is based on information currently available to the Company. Actual results may differ from the forecast
due to a variety of factors.

5

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets
Fiscal Year Ended
March 31, 2020
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable–trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Total assets

6(Millions of yen)
Nine Months Ended
December 31, 2020

4,629
25,859
3,679
944
930
8,623
-399
44,268

5,353
22,599
3,918
1,769
1,079
9,841
-384
44,17734,256
23,77323,06817,25498,35334,131
23,98723,862
17,984
99,966

5,125
5,705
10,831

5,443
5,496
10,9391,601
15,294-377
16,518125,7031
169,972

1,622
16,639-400
17,861
128,7671
172,946

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017

Fiscal Year Ended
March 31, 2019
Liabilities
Current liabilities
Notes and accounts payable–trade
Short-term loans payable
Current portion of bonds
Income taxes payable
Provision for loss on litigation
Other provision
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Other provision
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustment
Remeasurement of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

7(Millions of yen)
Nine Months Ended
December 31, 201915,03419,921
118
2,244
1,161
1,782
20,35460,617

14,24920,33998
550－
197
20,471
55,906

112
28,121
238
876
14,02443,372103,989

63
30,843273
920
14,09646,197102,104

14,00025,542
26,426-2,221
63,746

14,00025,542
28,684-2,21966,007

290
-883
-7
1,449
848
1,387
65,982
169,972

849
1,230
-160
1,408
3,327
1,506
70,841
172,946

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017(2) Quarterly Consolidated Statements of Income, Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Nine Months Ended December 31, 2019)

Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating profit
Interest income
Dividend income
Commission fee
Share of profit of entities accounted for using equity method
Other
Total non-operating profit
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Other
Total non-operating expenses
Recurring profit
Extraordinary income
Gain on sales of non-current assets
Gain on donation of non-current assets
Transmission line facility subsidies
Subsidy income
Gain on reversal of subscription rights to shares
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Loss on sales of investment securities
Loss on valuation of investment securities
Provision for loss on litigation
Other
Total extraordinary losses
Quarterly net income before income taxes
Income taxes (current)
Income taxes (deferred)
Total income taxes
Quarterly net income
Quarterly net income attributable to non-controlling interests
Quarterly net income attributable to owners of the parent

8

Nine Months Ended
December 31, 2019
(April 1, 2019 to
December 31, 2019)
141,557
84,25457,30248,024
9,278(Millions of yen)
Nine Months Ended
December 31, 2020
(April 1, 2020 to
December 31, 2020)
139,792
80,14759,64549,743
9,901

8
191
26
92
183
503

8
181
22
－
246
459

229
74
303
9,478

221
137
73
432
9,929

14
96
263
374

56
295
71
66
0
490

3
558
17
30
1,150
77
1,839
8,013
2,799
-48
2,751
5,262
159
5,103

0
467
0
148
26
643
9,775
2,591
1,123
3,715
6,060
124
5,936

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017

(Consolidated Statements of Comprehensive Income)(Nine Months Ended December 31, 2019)

Quarterly net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustment
Remeasurement of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using the equity method
Total other comprehensive income
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income attributable to owners of
the parent
Quarterly comprehensive income attributable to noncontrolling interests

9

Nine Months Ended
December 31, 2019
(April 1, 2019 to
December 31, 2019)
5,262(Millions of yen)
Nine Months Ended
December 31, 2020
(April 1, 2020 to
December 31, 2020)
6,060

15
442
1
-138

558
2,114
-2
-40

-5

-151

316
5,579

2,478
8,538

5,420

8,415

159

123

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)
Nine Months Ended Nine Months Ended
December 31, 2019 December 31, 2020
(April 1, 2019 to(April 1, 2020 to
December 31, 2019) December 31, 2020)
Cash flows from operating activities
Quarterly net income before income taxes
Depreciation
Amortization of goodwill
Impairment loss
Increase (decrease) in net defined benefit asset and liability
Interest and dividend income
Loss (gain) on sales of investment securities
Interest expenses(Gain) loss on sales of non-current assets(Gain) loss on valuation of investment securities
Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable – trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable – trade
Other
Subtotal
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Interest and dividend income received
Purchase of securities
Proceeds from sales of securities
Purchase of tangible and intangible assets
Proceeds from sales of tangible and intangible assets
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Purchase of shares of subsidiaries and associates
Payments for transfer of business
Payments of loans receivableCollection of loans receivable
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Interest expenses paid
Net increase (decrease) in short-term loans payable
Repayments of lease obligations
Proceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds
Payments for acquisition of treasury stock
Proceeds from disposal of treasury shares
Cash dividends paid
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

10

8,013
10,681
810
-133
-200
-245
229
-10
30
558
1,990
-804
-331
153
20,741-5,264
15,476

9,775
10,957909-1,161
-35
-190
0
221
-56
148
467
4,229
-1,176-836
863
24,115-4,712
19,402238-10576-8,947
164

226
-12
70
-9,965300-1,408-1,090

-373
-189
-20
53
-329
-9,683-3,013-1,630－39
402-14,672-232
3,450-2,7065,420-6,850-104-1
0-3,672-82-4,779
-1
1,013
4,018
5,032

-224
-325
-3,02910,736-7,271-69-0－-3,671-6-3,863
-0
866
4,046
4,912

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017(4) Notes on Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Notes on Significant Changes in Shareholders’ Equity)
Not applicable.
(Additional Information)(Resolution of important legal proceedings)
On January 16, 2020, the Tokyo High Court delivered an appellate ruling regarding the damage suit and countersuit
between consolidated subsidiary and plaintiff (countersuit defendant) TOKAI Communications Corporation anddefendant (countersuit plaintiff) Hitachi Solutions, Ltd. In response to this ruling, TOKAI Communications Corporation
filed a petition for acceptance of final appeal with the Supreme Court. However, the Supreme Court rejected thispetition on October 20, 2020. Due to this decision from the Supreme Court, the appellate ruling from the Tokyo High
Court, which requires TOKAI Communications Corporation to pay Hitachi Solutions, Ltd. 766 million yen in monetarydamages as well as corresponding delinquent charges, will stand as final.
In the fiscal year ended March 31, 2020, the Company recorded a 1,161 million-yen provision for loss on litigation to
insure against a possible finalization of the appellate ruling delivered by the Tokyo High Court on January 16, 2020.
Despite this protective measure, the Company reported an extraordinary loss of 26 million yen in the first nine monthsof the fiscal year ending March 31, 2021 in connection with this ruling.

11

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017

(Segment Information, etc.)[Segment Information]
I. Nine Months Ended December 31, 2019 (April 1, 2019 to December 31, 2019)
Sales and Income of Losses by Reportable Segment
Reportable segments
Information
Building
Other1andEnergy equipment CATV
Aqua Subtotal
Communireal estatecations
Sales
Sales toexternalcustomers
Intersegment
sales andtransfers
Subtotal
Segment income(loss)

55,191130
55,322
2,156

14,919 23,433
750

38,834507

2,593

15,669 23,940

41,428

709

3,432

2,429

5,603 137,982
127

4,109

5,730 142,091
389

9,117

(Millions of yen)Amount inquarterly
Total Adjustments2 consolidated
statements ofIncome3

3,575 141,557－

141,557

4,242-4,242－

3,708 145,799-4,242

141,557

-24

9,278

132

186

9,303

(Notes) 1. The “Other” category is a business segment not included in the reportable segments. This category includes businesses such as weddings,
ship repair, insurance, and nursing care.
2. Adjustments to segment income (loss) are mainly eliminations due to intersegment transactions.
3. Segment income (loss) is adjusted to match operating profit in the quarterly consolidated statements of income.

II. Nine Months Ended December 31, 2020 (April 1, 2020 to December 31, 2020)
Sales and Income of Losses by Reportable Segment
Reportable segments
Information
Building
Other1andAqua Subtotal
Energy equipment CATV
Communireal estatecations
Sales
Sales toexternalcustomers
Intersegment
sales andtransfers
Subtotal
Segment income(loss)

53,437
151
53,5882,996

14,815 24,994
700

456

15,516 25,450
539

3,740

(Millions of yen)Amount inquarterly
consolidated
statements ofIncome3

Total

Adjustments2

2,934 139,792－

139,792

4,176-4,176－

40,461 5,917 140,935

3,033 143,969-4,176

139,792

2,151

-120

260

9,901

37,831 5,778 136,857
2,630

139

333

4,077

9,760

98

9,640

(Notes) 1. The “Other” category is a business segment not included in the reportable segments. This category includes businesses such as weddings,
ship repair, insurance, and nursing care.
2. Adjustments to segment income (loss) are mainly eliminations due to intersegment transactions.
3. Segment income (loss) is adjusted to match operating profit in the quarterly consolidated statements of income.

12