Consolidated Financial Results for the First Three Months of the
Fiscal Year Ending March 31, 2018 [Japanese GAAP]
August 4, 2017
Company name:
Stock code:
Representative:
Contact:

TOKAI Holdings Corporation
Stock listing:Tokyo Stock Exchange
3167
URL:
http://tokaiholdings.co.jp
Katsukiho Tokita, President & CEO
Hiroyuki Ozawa, Managing Executive Officer, General Manager of Administrative Headquarters
Telephone: +81-54-275-0007
Scheduled date of filing quarterly report:
August 10, 2017
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 Three-months Ended June 30, 2017
(April 1, 2017 to June 30, 2017)(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 ofyen%Millions of yen

Three-months Ended
42,5312,152
2,204 (24.0)
2.2(25.0)
June 30, 2017
Three-months ended
41,618
(2.5)
2,870
68.0
2,900
75.9
June 30, 2016
(Note) Comprehensive income: 6,884 million yen in the Three-months Ended June 30, 2017 (526.8%)
1,098 million yen in the Three-months ended June 30, 2016 (-50.9%)
Quarterly Net Income
per Share
Three-months Ended
June 30, 2017
Three-months ended
June 30, 2016

%

1,182

(33.1)

1,766

147.2

Quarterly Net Income
per Share (Diluted)

Yen

Yen

9.33

8.99

15.60

13.51

(2) Consolidated Financial Position
Total Assets

Net Assets

Millions of yen

Millions of yen

Equity Ratio%

Three-months Ended
157,848
55,511
June 30, 2017
Year ended
161,11254,446
March 31, 2017
(Reference) Equity: 54,678 million yen for the Three-months Ended June 30, 2017
55,678 million yen for the year ended March 31, 2017

34.6
34.5

2. Dividends
End of Q1

End of Q2

Annual Dividend
End of Q3

Year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ended March 31, 2017

―

11.00

―

17.00

28.00

Year ending March 31, 2018―Year ending March 31, 2018
14.00
―
28.00
14.00
(Forecast)(Note) Revisions to most recently announced dividend forecasts: No(Note) The breakdown of the year-ended March31, 2017 dividen were ordinary dividend of 11 yen and commemorative
dividend of 6 yen.
Capital surplus is included in dividend resources for fiscal 2016. For details, please refer to "Breakdown of dividends
with capital surplus as dividend fund" below.

3. Consolidated Earnings Forecasts for the Year Ending March 31, 2018 (April 1, 2017 to March 31, 2018)(% 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

(40.2)

1,080(54.7)

8.52(11.1)

6,450(12.1)

50.88%

Six months ending
86,0004.6
2,710 (38.5)
2,650
September 30,2017
Year ending March
189,400
6.0
11,410 (10.5)
11,36031, 2018(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): No
3) 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):

Q1 FY3/2018

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

Q1 FY3/2018

12,912,680 shares FY3/2017

12,915,785 shares

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

Q1 FY3/2018

126,765,243 shares Q1 FY3/2017

113,241,238 shares

139,679,977 shares FY3/2017

139,679,977 shares(Note) Board benefit trust shares(BBT) is included in the number of year-end treasury stock.(416,600 stocks at Q1 FY3/2018, 420,000
stocks at FY3/2017) 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 (418,841 shares for the Three-months Ended June 30, 2017;0 shares for the Three-months Ended June 30, 2016).

* 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 Three Months ended June 30, 2017

Breakdown of dividends with capital surplus as dividend resource
Of the dividends for the fiscal year ending March 31, 2017, the breakdown of dividends for capital surplus asdividend is as follows.
Reference dateYear-Ended

Total

Dividend per share (Yen)

0.79

0.79

Total dividends (Millions of yen)

100

100

(Note) Reduction ratio of net assets 0.003

1TOKAI Holdings Corporation (3167) Financial Results for the Three Months ended June 30, 2017

[Attachment]

Contents

1.

Qualitative Information on Financial Results for the Period Under Review(1)

Explanation of Consolidated Operating Performance··············································································· 3(2)Explanation of Consolidated Financial Condition····················································································· 4(3)Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information······························ 52.

Quarterly Consolidated Financial Statements and Notes(1)

Quarterly Consolidated Balance Sheets ································································································ 6(2)Quarterly Consolidated Statements of Income, Consolidated Statements of Comprehensive Income ··············· 8(3)Quarterly Consolidated Statements of Cash Flows················································································ 10(4)Notes on Quarterly Consolidated Financial Statements·········································································· 12(Notes on Premise of Going Concern) ····································································································· 12(Notes on Significant Changes in Shareholders’ Equity) ·············································································· 12(Additional Information) ························································································································· 12(Segment Information, etc.) ··················································································································· 13

2

TOKAI Holdings Corporation (3167) Financial Results for the Three Months ended June 30, 2017

1.

Qualitative Information on Financial Results for the Period Under Review(1)

Explanation of Consolidated Operating Performance

In the three months ended June 30, 2017, the Japanese economy was on a gradual recovery trend, with an upturn inpersonal consumption and some improvement in employment conditions, but the general economic outlook remains
clouded due to uncertainties in overseas economies, such as the U.S. monetary policy and the risk of weaker-thanexpected performance of emerging economies in Asia.
In May 2017, the TOKAI Group disclosed Innovation Plan 2020 “JUMP,” its new medium-term management plan whose
final year will be fiscal year ending March 31, 2021. It also announced its growth strategies for achieving the targets outlinedin the plan. In addition to making progress with existing priorities such as increasing the number of continuing customers
and capturing cross-selling opportunities based on the Total Life Concierge (TLC) concept, the Group intends to attain plantargets through initiatives including service area expansions to broaden sales channels, M&A activities targeting companies
synergistic with existing businesses, and advancement into new business areas, and the Group has started taking
measures to this end.
Under these conditions, in the three months ended June 30, 2017, the Group booked sales of 42,531 million yen (up2.2% year-on-year) mainly due to an increase in continuing customers. However, a rise in costs to acquire customers andprevent contract cancellations among other factors affected profits, and the Group posted operating profit of 2,152 million
yen (down 25.0%), recurring profit of 2,204 million yen (down 24.0%), and quarterly net income attributable to owners of theparent of 1,182 million yen (down 33.1%).
As of June 30, 2017, the number of continuing customers was 2,570 thousand (up six thousand from March 31, 2017),
and members of the TLC Membership Service numbered 613 thousand (up 28 thousand).
Performance by segment was as follows.

(Gas and Petroleum)
In the liquefied petroleum gas (LP gas) business, in the three months ended June 30, 2017, the Group engaged in efforts
to attract new customers and prevent existing customers from switching suppliers amid intensifying competition. As a result,the number of customers rose by three thousand from March 31, 2017, to 591 thousand and LP gas sales volume was flat
year-on-year. Consequently, sales of the LP gas business came to 14,679 million yen (down 0.1% year-on-year).
In the city gas business, the number of customers was 54 thousand, unchanged from the level as of March 31, 2017, but
sales fell 2.5% year-on-year to 2,712 million yen due to a decline in industrial use and other factors.
As a result, segment sales came to 17,392 million yen (down 0.5% year-on-year), and operating profit was 722 million
yen (down 56.0%).

(Building and Real Estate)
In the Building and Real Estate business, although revenue from housing sales and number of properties managed
under building management support services increased, sales of solar power equipment was down year-on-year. As aresult, segment sales were 3,617 million yen (up 5.9% year-on-year) and the operating loss was 51 million yen (comparedwith an operating loss of 45 million yen in the corresponding period of the previous year).

(CATV)In the CATV business, we worked on measures to increase customer satisfaction such as sales of set discount offeringsfor broadcasting and communications, in addition to smartphone set discounts through alliances with major mobile phone
carriers. These measures helped us acquire new customers and prevent existing customers from switching to competitors.
We also stepped up efforts at call centers to prevent contract cancellation.
As a result of these measures, subscribers to the broadcasting service increased by two thousand from March 31, 2017,
to 510 thousand and subscribers to telecommunications services increased by three thousand from March 31, 2017, to 229
thousand.
Due to an increase in subscribers, segment sales totaled 6,406 million yen (up 2.6% year-on-year), and operating profit

3

TOKAI Holdings Corporation (3167) Financial Results for the Three Months ended June 30, 2017

was 751 million yen (up 22.1%).

(Information and Communications Service)
In the broadband business for individual customers, we worked to acquire new customers and also actively encouraged
existing customers to switch to Hikari Collaboration services. As a result, the number of Hikari Collaboration customers
increased by 11 thousand from March 31, 2017, to 310 thousand. However, the total number of FTTH customers fell by
seven thousand to 713 thousand due to increased competition from major mobile phone carriers. This, combined with
contract cancellations by ADSL and other customers, led to a decrease of 10 thousand broadband customers to 784
thousand. The number of customers of our LIBMO MVNO service launched in February 2017 came to eight thousand as ofJune 30, 2017. As a result, segment sales totaled 7,869 million yen (up 1.7% year-on-year).
For corporate customers, growth of businesses with recurring revenue such as cloud services and an increase in orders
for systems development led to a 13.3% year-on-year increase in sales to 4,577 million yen.
Due to these factors, segment sales came to 12,447 million yen (up 5.7% year on year), but operating profit was 457
million yen (down 28.0%) due to an increase in promotional spending on the MVNO business.

(Aqua)In the Aqua business, the Company pushed forward with customer acquisition activities for the “The gift of delicious
water: Ulunom” brand, mainly targeting large-scale commercial facilities at metropolitan areas nationwide, and succeeded
in increasing the number of Aqua customers to 138 thousand, up by three thousand from March 31, 2017.
As a result, segment sales came to 1,456 million yen (up 2.2% year-on-year), and operating profit was 0 million yen(compared with an operating loss of 30 million yen in the same period of the preceding fiscal year).

(Others)
In the nursing care business, an increase in the number of users led to sales of 245 million yen (up 16.7% year-on-year).
In the ships business, sales were up 6.1% year-on-year to 393 million yen on an increase in the number of ships repaired.
In the bridal events business, sales were down 24.8% year-on-year to 380 million yen due to the closure of wedding venue
Vrai Cloche Bouquet Tokai Mishima at the end of March 2017.
Due to these factors, segment sales came to 1,211 million yen (down 5.1% year-on-year), but operating profit was 77
million yen (up 208.7%).

(2) Explanation of Consolidated Financial Condition
1) Assets, Liabilities, and Net Assets
Total assets amounted to 157,848 million yen as of June 30, 2017, down by 3,263 million yen from March 31, 2017. Thisdecline was mainly attributable to a 3,870 million yen decrease in notes and accounts receivable–trade stemming fromseasonal factors.
Total liabilities were 102,337 million yen, down 2,328 million yen from March 31, 2017. This was primarily due to adecrease of 2,445 million yen in notes and accounts payable–trade stemming from seasonal factors.
As of June 30, 2017, net assets totaled 55,511 million yen, down 934 million yen from March 31, 2017. This was primarily
due to the recording of 1,182 million yen in quarterly net income attributable to owners of the parent and a decrease of 2,162
million yen due to distribution of retained earnings.

2) Cash Flows
Cash and cash equivalents (hereinafter referred to as “funds”) at June 30, 2017 totaled 2,829 million yen, down 281
million yen from March 31, 2017.
Cash flows from each activity during the three months under review and the factors behind them are as follows.

4

TOKAI Holdings Corporation (3167) Financial Results for the Three Months ended June 30, 2017

(Cash flows from operating activities)
Net cash provided by operating activities was 4,851 million yen (down 3,391 million yen year-on-year). Funds increased
chiefly due to quarterly net income before income taxes and the effect of depreciation and amortization expenses (non-cash
items).
Cash flows from operating activities decreased substantially year on year. This was mainly due to an increase in income
tax payments and other factors.

(Cash flows from investing activities)
Net cash used in investing activities was 2,870 million yen (down 415 million yen year-on-year). Cash was used mainly forthe acquisition of tangible and intangible assets.

(Cash flows from financing activities)
Net cash used in financing activities was 2,262 million yen (up 3,954 million yen year-on-year). Cash was mainly used forthe payment of dividends.
Additionally, cash flows from financing activities increased substantially year on year. This was mainly due to an increasein short-term borrowings.

(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information
Earnings results for the three months ended June 30, 2017 were generally in line with forecasts, and the Group maintains
its consolidated earnings forecasts for the fiscal year ending March 31, 2018, announced on May 9, 2017.
Forecasts are judgments based on currently available information. Actual performance may differ from forecasts due to avariety of factors going forward.

5

TOKAI Holdings Corporation (3167) Financial Results for the Three Months ended June 30, 2017

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
Fiscal Year Ended

Three Months Ended

March 31, 2017

June 30, 2017

AssetsCurrent assets
Cash and deposits

3,239

2,963

Notes and accounts receivable–trade

22,83818,967

Merchandise and finished goods

3,676

3,743

Work in process

645

597

Raw materials and supplies

737

704

Other

7,789

9,206

Allowance for doubtful accounts

(332)

(321)

Total current assets

38,59435,862

Buildings and structures, net

33,71832,980Machinery, equipment and vehicles, net

21,84821,520Land

22,634

22,664

Other, net

15,446

15,738

Total property, plant and equipment

93,647

92,904

Goodwill

5,861

5,659

Other

5,127

5,086

Total intangible assets

10,988

10,746

Net defined benefit asset

2,397

2,413

Other

15,895

16,393

Allowance for doubtful accounts

(432)

(490)

Total investments and other assets

17,86018,316

122,496

121,96721

18

161,112

157,848

Non-current assets
Property, plant and equipment

Intangible assets

Investments and other assets

Total non-current assets
Deferred assets
Total assets

6

TOKAI Holdings Corporation (3167) Financial Results for the Three Months ended June 30, 2017

(Millions of yen)
Fiscal Year Ended

Three Months Ended

March 31, 2017

June 30, 2017

Liabilities
Current liabilities
Notes and accounts payable–trade

14,77912,334

Short-term loans payable

22,91225,785Current portion of bonds

578

578

Income taxes payable

3,484

1,093

Accruals

1,695

220

Other

17,854

20,772

Total current liabilities

61,30460,783406

406

Convertible bonds with stock acquisition rights

2,800

2,800

Long-term loans payable

27,44025,397

Accruals

101

100

Net defined benefit liability

364

371

Other

12,24912,478

Total non-current liabilities

43,361

41,553

104,665

102,337

Capital stock

14,00014,000Capital surplus

24,28624,187Retained earnings

15,048

14,168Treasury stock△3,285△3,285

Total shareholders’ equity

50,04849,071

2,126

2,554

720

339

Non-current liabilities
Bonds payable

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustment△9△9Remeasurement of defined benefit plans

2,768

2,721

Total accumulated other comprehensive income

5,605

5,606

791

833

56,44655,511

161,112

157,848

Non-controlling interests
Total net assets
Total liabilities and net assets

7

TOKAI Holdings Corporation (3167) Financial Results for the Three Months ended June 30, 2017(2) Quarterly Consolidated Statements of Income, Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Three Months Ended June 30, 2017)(Millions of yen)Three Months Ended
June 30, 2016
(April 1, 2016 toJune 30, 2016)

Three Months Ended
June 30, 2017
(April 1, 2017 toJune 30, 2017)

Sales

41,61842,531

Cost of sales

24,21924,897Gross profit

17,39817,633

Selling, general and administrative expenses

14,52815,481

Operating profit

2,870

2,152

Interest income

32

Dividend income

95

106

Commission fee

21

23

Other

97

66

Total non-operating profit

217

198

Interest expenses

146

114

Other

41

32

Total non-operating expenses

187

147

2,900

2,204

Gain on sales of non-current assets

10Transmission line facility subsidies

2

18

Subsidy income

2-

Total extraordinary income

6

19

0

0

Loss on retirement of non-current assets

146

259

Bad debt losses－

15

Total extraordinary losses

146

274

Quarterly net income before income taxes

2,761

1,948

Income taxes (current)

1,248

958

Income taxes (deferred)

△274

△217

Total income taxes

973

741

Quarterly net income

1,788

1,207

Quarterly net income attributable to non-controlling interests

21

25

Quarterly net income attributable to owners of the parent

1,766

1,182

Non-operating profit

Non-operating expenses

Recurring profit
Extraordinary income

Extraordinary losses
Loss on sales of non-current assets

8

TOKAI Holdings Corporation (3167) Financial Results for the Three Months ended June 30, 2017

(Consolidated Statements of Comprehensive Income)(Three Months Ended June 30, 2017)(Millions of yen)Three Months Ended
June 30, 2016
(April 1, 2016 toJune 30, 2016)

Three Months Ended
June 30, 2017
(April 1, 2017 toJune 30, 2017)

1,788

Quarterly net income

1,207

Other comprehensive income
Valuation difference on available-for-sale securities

(271)

427

Deferred gains (losses) on hedges

(133)

(381)

Foreign currency translation adjustment

(8)

(1)

Remeasurement of defined benefit plans, net of tax

(38)

(46)

(6)

2

(459)

0

1,329

1,207

1,307

1,182

21

24

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

TOKAI Holdings Corporation (3167) Financial Results for the Three Months ended June 30, 2017(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)Three Months Ended

Three Months Ended

June 30, 2016

June 30, 2017

(April 1, 2016 to(April 1, 2017 toJune 30, 2016)

June 30, 2017)

Cash flows from operating activities
Quarterly net income before income taxes

2,761

1,948

Depreciation

3,587

3,502

302

293

(1,234)(1,244)

Increase (decrease) in net defined benefit asset and liability

(57)

(75)

Interest and dividend income

(98)

(108

Interest expenses

146

114

(Gain) loss on sales of non-current assets

(1)

(0)

Loss on retirement of non-current assets

146

259

(Increase) decrease in notes and accounts payable

3,488

4,207

(Increase) decrease in inventories

(345)

(10)

(1,510)(2,451)

Increase (decrease) in accrued consumption taxes

(45)

37

Increase (decrease) in deposits received

2,643

2,724

435

(170)

Subtotal

10,216

9,024

Income taxes paid

(1,973)(4,173)

8,242

4,851

112

131

Amortization of goodwill
Increase (decrease) in provision for bonuses

Increase (decrease) in notes and accounts payable–trade

Other

Net cash provided by (used in) operating activities
Cash flows from investing activities
Interest and dividend income received

(2)

(3)

(2,600)(3,065)

Proceeds from sales of tangible and intangible assets

37

66Collection of loans receivable

21

7

(23)

(7)

(2,454)(2,870)

(138)

(110)

Net increase (decrease) in short-term loans payable(1,125)

3,500

Repayments of lease obligations リース債務の返済による支出(1,006)(950)

Purchase of securities
Purchase of tangible and intangible assets

Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Interest expenses paid

Proceeds from long-term loans payable(3,224)(2,670)

Proceeds from share issuance to non-controlling shareholders－

20

Payments for redemption of bonds payable－

20

Payments for acquisition of treasury stock

(0)

(0)

Proceeds from disposal of treasury shares

131

0

(848)

(2,045)(5)(5)(6,216(2,262(1)(0)

Repayment of long-term loans payable

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

10TOKAI Holdings Corporation (3167) Financial Results for the Three Months ended June 30, 2017

Net increase (decrease) in cash and cash equivalents

(430)

(281)

Cash and cash equivalents at beginning of period

4,044

3,111

Cash and cash equivalents at end of period

3,614

2,829

11

TOKAI Holdings Corporation (3167) Financial Results for the Three Months ended June 30, 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)(Board Benefit Trust (BBT))(1) Overview of Transactions
At a Board of Directors Meeting held on May 10th, 2016, the Company approved the introduction of a board
benefit trust (BBT) plan as a new stock-based compensation system (hereinafter referred to as “the System”) for
the Company’s Directors, Executive Officers, Administrative Officers, and the Directors and Administrative
Officers of some of the Company’s subsidiaries (excluding Outside Directors; hereinafter referred to as“Executives”). This Executive compensation was approved at the 5th Annual General Meeting of Shareholders
held on June 24, 2016.
The System is a stock-based compensation system in which the Company will acquire the shares of theCompany using funds the Company first contributes. The Company’s shares and the amount of cash equivalent
to the market price of the Company’s shares as of the date of the Executive’s retirement (hereinafter referred toas the “Company’s Shares, etc.”) will be provided through the trust to the Executives in accordance withexecutive stock-based compensation rules stipulated by the Company and subsidiaries of the Company
covered by the System. In principle, Executives shall receive the Company’s Shares, etc. upon their retirement.
The Company has applied the gross method for this transaction in accordance to “Practical Solution on
Transactions of Delivering the Company’s Own Stock to Employees etc. through Trusts” (ASBJ PITF No. 30,
March 26, 2015).
(2) Company stock remaining in the trust
The Company is recording Company stock which remains in the trust as treasury stocks under net assets atbook value (excluding attached expenses). The book value of such Company stocks was 261 million yen as ofMarch 31, 2017, 258 million yen as of June 30 2017. The number of stock was 420 thousand shares as of March
31, 2017, 416 thousand shares as of June 30, 2017.

12

TOKAI Holdings Corporation (3167) Financial Results for the Three Months ended June 30, 2017

(Segment Information, etc.)[Segment Information]
I. Three Months Ended June 30, 2016 (April 1, 2016 to June 30, 2016)
Sales and Income of Losses by Reportable Segment(Millions of yen)
Reportable segments
Building
Information
Other1
Gas and
and
and
CATV
Aqua Subtotal
Petroleum Real
CommuniEstatecations
Sales
Sales toexternalcustomers
Intersegment
sales andtransfers
Subtotal
Segment income(loss)

17,479

3,414

6,241

11,780

72

679

198

635

17,551

4,094

6,440

12,415

1,643

(45)

615

636

1,424 40,341

6

1,591

1,431 41,932
(30)

2,819

Amount in quarterly
consolidated
Total Adjustments
statements ofIncome32－41,618

1,641(1,641)－

1,327 43,260(1,641)

41,61826

2,870

1,277 41,618

50

25

2,844

(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. Three Months Ended June 30, 2017 (April 1, 2017 to June 30, 2017)
Sales and Income of Losses by Reportable Segment(Millions of yen)
Reportable segments
Information
Building
Other1
Gas andandand Real CATV
Aqua Subtotal
Petroleum
CommuniEstatecations

Amount in quarterly
consolidated
Total Adjustments
statements ofIncome3
2

Sales
Sales toexternalcustomers
Intersegment
sales andtransfers
Subtotal
Segment income(loss)

17,39235
17,427722

3,617 6,406

307

196

3,925 6,603
(51)

751

12,447 1,456

708

41,3196

1,253

13,155 1,462

42,573

457

0

1,880

－

42,531

1,302(1,302)－

1,260 43,833(1,302)

42,531194

2,152

1,211 42,531

48

77

1,957

(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.

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