Consolidated Financial Results for theYear ended March 31, 2022 [Japanese GAAP]May 10, 2022
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 29, 2022
Scheduled start date of dividend payment:
June 28, 2022
Scheduled date to submit Securities Report:
June 28, 2022
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, 2022 (April 1, 2021 to March 31, 2022)(% 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, 2022

210,691

7.1

15,794

3.7

15,907

3.9

8,969

1.7

Year ended March 31, 2021

196,726

0.4

15,226

7.0

15,312

5.8

8,815

7.0

(Note) Comprehensive income: 7,131 million yen in the Year ended March 31, 2022 (-48.1%)
13,748 million yen in the Year ended March 31, 2021 (135.7%)
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, 2022

68.49

-

11.8

8.8

7.5

Year ended March 31, 2021

67.32

-

12.7

8.8

7.7

(Reference) Equity in affiliates accounted for under the equity method:-259 million yen for the ended March 31, 2022
-136 million yen for the ended March 31, 2021

(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, 2022

184,473

78,94641.9

590.21

Year ended March 31, 2021

178,974

76,05641.6

568.93

Cash and Cash
Equivalents at theEnd of the Year

(Reference) Equity: 77,234 million yen for the Year ended March 31, 2022
74,510 million yen for the Year ended March 31, 2021

(3) Consolidated Cash Flows
Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Year ended March 31, 2022

20,808(14,592)(6,905)

4,447

Year ended March 31, 2021

32,223(17,068)(14,064)

5,136

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 ending March 31, 2021

―

14.00

―

16.00

30.00

3,940

44.6

5.6

Year ending March 31, 2022
Year ending March 31, 2023
(Forecast)

―

15.00

―

17.00

32.00

4,203

46.7

5.5

―

16.00

―

16.00

32.00

50.5

3. Consolidated Earnings Forecasts for the Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)(% figures represent year-on-year changes)

Sales

Year ending March
31, 2023

Operating Profit

Recurring Profit

Millions of yen%

Millions of yen%

223,000

5.8

14,500(8.2)

Millions of yen

14,300Net Income Attributable Net Income
to Owners of the Parent per Share

%Millions of yen%

Yen(10.1)

8,300

(7.5)

63.43

*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.: Yes
2) Changes in accounting policies other than 1): No
3) Changes in accounting estimates:

No4) Restatements:

No(Note) For details, see “3. Consolidated Financial Statements and Main Notes (5) Notes on Consolidated Financial Statements (Changes in Accounting
Policy)” on page 15 of the Attachment.
(3) Number of shares issued (common stock)
1) Shares issued at the end of each period (including treasury stock):

FY2021

139,679,977 shares FY2020

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

FY20218,819,780 shares FY2020

8,713,335 shares

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

FY2021130,971,865 shares FY2020

130,963,743 shares

139,679,977 shares(Note) Board benefit trust shares(BBT) is included in the number of year-end treasury stock. (496,900 stocks at FY3/2022, 391,300 stocks at
FY3/2021)

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

shares (385,805 stocks at FY3/2022, 394,416 stocks at FY3/2020) owned by the BBT are included.

(Reference) Overview of Non-Consolidated Operating Performance
Operating Performance for the Year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(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, 2022

10,127

8.0

4,863

18.5

4,877

18.2

4,910

32.2

Year ended March 31, 2021

9,373

3.8

4,104

(0.1)

4,127

(0.2)

3,714

(7.8)

Net Income per
Share

Net Income per
Share (Diluted)

Yen

Yen

Year ended March 31, 2022

37.50

-

Year ended March 31, 2021

28.36

-

(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, 2022

99,14941,12441.5

314.19Year ended March 31, 2021

99,89640,381

40.4

308.33(Reference) Equity: 41,115 million yen for the Year ended March 31, 2022
40.381 million yen for the Year ended March 31, 2021

* Information Regarding Execution of Quarterly Review Procedures* 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, 2022

[Attachment]

Contents
1. Overview of Operating Results and Financial Position········································································ 2(1)Overview of Operating Results ····························································································· 2(2)Overview of Financial Position ······························································································ 4(3)

Overview of Cash Flows ····································································································· 4(4)Future Outlook·················································································································· 5(5)Basic Profit Distribution Policies and Dividends for the Current and Next Fiscal Years ······························· 5

2. Basic Perspective on Selection of Accounting Standards········································································ 6
3. Consolidated Financial Statements ······························································································ 7(1)Consolidated Balance Sheets ······························································································ 7(2)Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ············· 9(3)Statement of Changes in Consolidated Shareholders’ Equity ······················································ 11(4)Consolidated Statements of Cash Flows ··············································································· 13(5)Notes to the Consolidated Financial Statements ······································································ 15(Notes on Premise of Going Concern) ················································································· 15(Changes in Accounting Policies) ························································································· 15(Additional Information) ··································································································· 15(Segment Information)····································································································· 16(Per-Share Information) ··································································································· 21(Important Subsequent Events) ························································································· 21

4. Other ································································································································· 22(1)

Changes in Executive Positions····························································································· 22

1

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2022

1. Overview of Operating Results and Financial Position(1) Overview of Operating Results
Consolidated operating results for the fiscal year under review
For the consolidated fiscal year under review, the Japanese economy remained under adverse circumstances due to
COVID-19, as in the previous fiscal year. Its outlook is still uncertain amid different factors including soaring crude oil prices
resulting from the crisis in Ukraine and the sharp depreciation of the yen due to a widening U.S.-Japan gap in interest rates.
In this environment, the Group announced a new medium-term management plan, Innovation Plan 2024 “Design the
Future Life” (IP24), which covers the period up to and including the fiscal year ending March 31, 2025, in May 2021. IP24
has five key messages: (i) implementation of the LNG strategy (expansion of business areas), (ii) evolution of the TLC
concept, (iii) Stepping up of the DX strategy, (iv) Optimal allocation of management resources, and (v) Strengthening of
SDG initiatives.
The first year of IP24 is a fiscal year to lay the foundation to achieve the goals expressed by those key messages. The
Group has started initiatives to achieve growth in the existing businesses and promote M&A. The Group has started also to
implement a new “green growth strategy,” which is intended to achieve carbon neutral, and workstyle reform.
In its operating activities, the Group actively sought to gain customers, while thoroughly taking steps to prevent infection.
These activities resulted in the number of continuing customers rising to 3,194,000 as of March 31, 2022, an increase of
95,000 from the end of the previous fiscal year. The number of TLC Membership Service members rose 107,000, to
1,086,000.
For the consolidated fiscal year under review, the Group posted net sales of 210,691 million yen, up 7.1% year on year,
operating profit of 15,794 million yen, up 3.7% year on year, recurring profit of 15,907 million ye, up 3.9% year on year
and net income attributable to owners of parent of 8,969 million yen, up 1.7% year on year. Net sales rose for the fifth
consecutive fiscal year and all profit and income figures for the fourth consecutive fiscal year. All these figures reached
new record highs.
In April 2021, the Company established TOKAI Venture Capital & Incubation Corporation (Minato-ku, Tokyo), as a topic inthis fiscal year. The company will help develop TLC through synergies with the existing businesses and the creation of newlife-related services.
In the same month, the Company acquired shares in Marco Polo inc. (Toyota, Aichi), which engages in the remodeling ofcondominiums, in the Construction, Equipment, and Real Estate segment, and made it a consolidated subsidiary andacquired shares also in QUERY Co. Ltd. (Toshima-ku, Tokyo), which engages in system development, in the Information
and Communications segment, making it a consolidated subsidiary.
The Company also set up new LP gas sales bases in Kumamoto City, Kumamoto Prefecture, in October 2021, andFukuyama City, Hiroshima Prefecture in January 2022.
Performance by segment is indicated below.
(Energy)In the LP gas business, the number of customers increased 34,000 from the end of the previous fiscal year, to 715,000,
reflecting sustained Group efforts to attract customers. Net sales stood at 73,769 million yen (up 12.4% compared to theprevious fiscal year), chiefly due to a rise in selling prices linked to purchase prices.
In the city gas business, the number of customers grew 7,000 from the end of the previous fiscal year, to 70,000. Net
sales for the business rose 10.7% year on year, to 13,000 million yen mainly due to an increase in the sales volume ofgas for industrial use and the effects of the gas rate adjustment system.
Net sales in this segment stood at 86,770 million yen (up 12.1%). Operating profit came to 6,059 million yen (down 0.9%),
reflecting an increase in expense for gaining customers, among other factors.
(Construction, Equipment, and Real Estate)
In the Construction, Equipment and Real Estate business, net sales stood at 27,780 million yen, up 19.9% year on year,

2

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2022

and operating profit at 1,706 million yen, up 35.7% year on year. Marco Polo inc., a company based in the city of Toyota
in Aichi Prefecture that is a consolidated subsidiary from the fiscal year under review onwards, helped achieve theseresults. The Group enjoyed brisk orders for existing construction equipment works and civil engineering works.
(CATV)In the CATV business, the Group focused on providing local information and the production of programs as a communitybased service provider. The Group collaborated with major video distributors to enhance content and enable customers
to live a comfortable life amid the COVID-19 pandemic. The Group continued careful and steady sales activities based on
actual conditions in each business area. The broadcasting services customer count rose to 887,000, an increase of
12,000 from the end of the previous fiscal year. The communications services customer count increased to 344,000, a
rise of 22,000 from the end of the previous fiscal year.
Meanwhile, net sales in this segment decreased 3.5% year on year, to 32,572 million yen as a result of the application of
the Accounting Standard for Revenue Recognition from the current fiscal year. Meanwhile, operating profit in the segmentrose 10.0% year on year, to 5,189 million yen due to an increase in the number of customers.
(Information and Communications)
In the business for consumers, the Group worked to acquire customers in an effort to achieve a net increase incustomers. For example, it expanded its ISP lineup in collaboration with major telecommunications carriers. In the mobile
business, the Group appropriately reviewed its service lineup and introduced package plans with fixed lines. Reflecting
effects those measures produced, the number of ISP customers stood at 654,000, following a controlled decline by 2,000
from the end of the previous fiscal year. The number of LIBMO customers rose 2,000 from the same point to 55,000. Net
sales amounted to 24,400 million yen, down 7.2% year on year.
In the business for corporate clients, net sales came to 26,997 million yen (up 10.5%), mainly reflecting steady growth incloud services and an increase in the contract development projects, which are currently booming.
Net sales in this segment were 51,398 million yen (up 1.3%), and operating profit was 3,355 million yen (up 8.7%).
(Aqua)In the Aqua (bottled drinking water delivery) business, events at large retail facilities, etc. performed well. The Group also
carried out non-face-to-face sales activities, including telemarketing. The number of customers increased 3,000 from theend of the previous fiscal year, to 165,000.
Net sales in this segment stood at 7,629 million yen (up 0.1%). Operating profit came to 46 million yen (down 82.1%),
reflecting an increase in expense for gaining customers, among other factors.
(Others)
Net sales in the nursing care business stood at 1,353 million yen (up 2.9%), reflecting an increase in the number of users.
Net sales in the shipbuilding business rose to 1,673 million yen (up 11.1%), due to an increase in the number of ships that
the Group repaired. Net sales in the bridal events business rose to 646 million yen (up 54.9%) in weddings and meetings.
Overall, net sales in this segment came to 4,540 million yen (up 11.7%), and the operating loss was 103 million yen (anoperating loss of 244 million yen in the same period of the previous consolidated fiscal year).
(2) Overview of Financial Position
Total assets at the end of the current consolidated fiscal year under review stood at 184,473 million yen, an increase of
5,499 million yen from the end of the previous fiscal year. The increase was mainly attributable to growth of 4,216 million
yen in property, plant and equipment, 2,243 million yen in notes and accounts receivable - trade, and contract assets, 811
million yen in investments and other assets, and 306 million yen in intangible assets despite a decrease of 1,787 million
yen in others under current assets resulting chiefly from a slide in derivative valuations.
Total liabilities came to 105,527 million yen, an increase of 2,609 million yen from the end of the previous fiscal year. Thisis due largely to increases of 2,350 million yen in short-term borrowings, 1,540 million yen in lease obligations under non-3

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2022

current liabilities, and 1,441 million yen in notes and accounts payable - trade despite a decrease in others under current
liabilities by 3,027 million yen after a decline in guarantee deposits received for hedge transactions.
Total net assets were 78,946 million yen, an increase of 2,890 million yen from the end of the previous fiscal year. This
resulted mainly from posting of 8,969 million yen as net income attributable to owners of parent despite 4,072 million yen
paid for dividends of surplus and a decrease in deferred gains or losses on hedges by 1,918 million yen.
(3) Overview of Cash Flows
Cash and cash equivalents (“cash”) as of the end of the current consolidated fiscal year were 4,447 million yen, adecrease of 688 million yen from the end of the previous fiscal year.
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 20,808 million yen (11,414 million yen less year on year). Cash inflows
were attributable primarily to net income before income taxes, an increase in notes and accounts payable-trade anddepreciation, a non-cash account, which were partially offset by income taxes paid and an increase in notes andaccounts receivable-trade and a decrease in deposits received among other cash outflows.
(Cash flows from investing activities)
Net cash used in investing activities 14,592 million yen (2,476 million yen higher year on year). Cash outflows were
attributable primarily to the purchase of tangible and intangible assets and the purchase of shares of subsidiaries resulting
in a change in scope of consideration.
(Cash flows from financing activities)
Net cash used in financing activities was 6,905 million yen (7,159 million yen higher year on year). Loans payable andother cash inflows were more than offset by cash outflows, including repayment of loans payable, repayments of leaseobligations and payment of cash dividends.
Net cash used in financing activities increased substantially year on year mainly due to growth in short-term loans
payable.
Below is a summary of major cash flow indicators.

FY03/18

FY03/19

FY03/20

FY03/21

FY03/22Equity ratio (%)

36.3

37.4

38.0

41.6

41.9

Equity ratio on a market-value
basis (%)

85.0

71.8

72.2

70.0

61.1

Ratio of interest-bearing debt
to cash flow (times)

2.4

2.3

2.1

1.3

2.1

Interest coverage ratio (times)

46.6

58.2

72.3

108.2

75.4

(Notes) Equity ratio: Shareholders’ equity / Total assets
Equity ratio on a market-value basis: 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 expenses paid shown in the consolidated statements of cash flows.

4

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2022

(4) Future Outlook
The Group carries out actions aimed at continued growth and development in accordance with the five key messages in
the TOKAI Group Medium-Term Management Plan Innovation entitled Plan 2024 (IP24) “Design the Future Life.”
For FY2022, the Group will continue to increase customers and to receive more orders in a bid to boost net sales. With
regard to profit, there is concern about a rise in gas purchase prices following climbing crude oil prices and escalation of
the depreciation of the yen. The Company will work vigorously to win customers by taking pricing and other measureswhile maintaining price competitiveness.
Taking what is mentioned above into account, the consolidated earnings forecast for FY2022 is as follows.
Consolidated earnings forecast for FY2022
Sales

223,000 million yen(+5.8% year on year)

Operating profit

14,500 million yen(-8.2% year on year)

Recurring profit

14,300 million yen (-10.1% year on year)

Net income attributable to owners of parent8,300 million yen(-7.5% 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, as well
as a dividend payout ratio of 40–50%.
For the fiscal year ended March 31, 2022, we forecast annual dividends of 32 yen per share, consisting of the alreadyissued interim dividend of 15 yen per share and a year-end dividend of 17 yen per share. We also project annual
dividends of 32 yen per share in the fiscal year ending March 31, 2023.

5

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2022

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 with Japanese
Generally Accepted Accounting Principles (J-GAAP) for the foreseeable future. However, we will consider the adoption ofInternational Financial Reporting Standards (IFRS), taking into account various situations in Japan and overseas.

6

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2022

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

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable–trade
Notes and accounts receivable - trade and contract assets, net
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
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Buildings and structures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other, net
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Leased assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Total assets

7

As of March 31, 2021

As of March 31, 2022

5,577
26,323
－
3,479
900
1,194
9,860
△403
46,932

4,743－
28,566
4,030
740
1,376
8,072
- 431
47,098131,474(96,966)
34,508105,403(80,788)
24,61424,05424,559(11,155)
13,403660
16,494(11,936)
4,558
101,800

135,544- 100,043
35,500108,369- 83,537
24,832
24,911
26,658- 11,309
15,348689
16,927- 12,194
4,733
106,017

5,258
727
4,700
10,687

6,040
675
4,278
10,993

10,207
57
1,712
3,150
4,698
(273)
19,552132,0410178,974

9,454
58
2,670
3,769
4,623
- 211
20,364
137,375－
184,473

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2022

(Millions of yen)
Liabilities
Current liabilities
Notes and accounts payable–trade
Short-term loans payable
Current portion of bonds
lease obligations
Income taxes payable
Provision for bonuses
Other accruals
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Other accruals
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
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

8

As of March 31, 2021

As of March 31, 2022

17,226
12,061
112
3,934
2,764
1,382
558
18,96957,00918,66814,411
－
4,217
2,819
1,443
318
15,942
57,822

29,955
11,349
276
962
3,363
45,908102,917

29,736
12,889
368
1,038
3,671
47,704
105,527

14,00025,542
31,563(2,219)68,887

14,00025,55236,395- 2,332
73,615

1,216
1,918
33
2,454
5,623
－
1,545
76,056
178,974

605
－
369
2,643
3,619
9
1,702
78,946
184,473

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2022

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)

Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating profit
Interest income
Dividend income
Commission income
Other
Total non-operating income
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 receipt of donated non-current assets
Gain on sale of investment securities
Transmission line facility subsidies
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Loss on sales of investment securities
Loss on valuation of investment securities
Anniversary project cost
Other
Total extraordinary losses
Net income before income taxes
Income taxes (current)
Income taxes (deferred)
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent

9

Fiscal year ended
March 31, 2021
196,726
113,856
82,87067,643
15,226

Fiscal year ended
March 31, 2022
210,691
125,479
85,212
69,41815,794

10
184
30
375
601

14
250
37
426
729

289
136
88
515
15,312

268
259
88
615
15,907

57
386
18
144
66
672

7
128
436
127
－
700

0
814
106
16
353
96
26
1,414
14,570
5,247
350
5,597
8,973
157
8,815

1
829
5
13
－
271
496
1,617
14,990
5,936
- 79
5,857
9,133
163
8,969

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2022

(Consolidated Statements of Comprehensive Income)(Millions of yen)

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted forusing 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

10

Fiscal year ended
March 31, 2021
8,973

Fiscal year ended
March 31, 2022
9,133

925
2,802
(0)
1,005

- 610
- 1,918
-5
188

40

344

4,775
13,748- 2,001
7,131

13,590
157

6,965
165

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2022

(3) Statement of Changes in Consolidated Shareholders’ Equity
Previous consolidated fiscal year (from April 1, 2020 to March 31, 2021)(Millions of yen)
Shareholders’ equity
Capital stock

Balance at beginning of period

Capital surplus

Retained earnings

Total shareholders’

Treasury stock

equity14,00025,542

26,426(2,221)

63,746

14,00025,542

26,426(2,221)

63,746

Cumulative effects of changes in accounting policies
Restated balance
Change during the year
Dividends of surplus(3,678)(3,678)Net income attributable to owners of the parent

8,815

8,815

Acquisition of treasury shares
Disposition of treasury shares

3

Increase (decrease) in cash resulting from merger ofconsolidated subsidiaries

(3)

(0)

(0)

2

5
(3)

Net changes of items other than shareholders' equity
－

0

5,137

1

5,140

14,00025,542

31,563(2,219)68,887

Total change during the year
Balance at end of period

Accumulated other comprehensive income

Balance at beginning of
periodShare
Foreign
Remeasurements Total accumulatedacquisition
currencyof defined benefit other comprehensive
rightstranslation
plans
incomeadjustment

Valuationdifference on
available-for-salesecurities

Deferred
gains orlosses onhedges

290

(883)

(7)

1,449

290

(883)

(7)

1,449

Noncontrollinginterests

Total net
assets848

1,387

65,982848

1,387

65,982

Cumulative effects ofchanges in accounting
policies
Restated balance
Change during the year
Dividends of surplus(3,678)Net income attributable toowners of the parent

8,815

Acquisition of treasury
shares(0)

Disposition of treasury
shares5

Increase (decrease) incash resulting frommerger of consolidated
subsidiaries(3)

Net changes of items
other than shareholders'equity

925

2,802

40

1,005

4,774

158

4,932

Total change during the year

925

2,802

40

1,005

4,774

158

10,073

1,216

1,918

33

2,454

5,623

1,545

76,056

Balance at end of period

11

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2022

Consolidated fiscal year under review (from April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders’ equity
Capital stock

Capital surplus

14,000

Balance at beginning of period

Retained earnings

25,542

Total shareholders’

Treasury stock

31,563equity(2,219)68,887(66)

Cumulative effects of changes in accounting policies
14,000

Restated balance

25,542(66)

31,497(2,219)68,820Change during the year
Dividends of surplus(4,072)(4,072)

Net income attributable to owners of the parent

8,969

8,969

Acquisition of treasury shares
9

Disposition of treasury shares

(119)

(119)

6

15

Increase (decrease) in cash resulting from merger ofconsolidated subsidiaries
Net changes of items other than shareholders' equity
－

9

4,897

(112)

4,794

14,00025,55236,395(2,332)

73,615

Total change during the year
Balance at end of period

Accumulated other comprehensive income
Valuation
Foreign
Total accumulated
Deferred gains
Remeasurements
difference on
currency
otheror losses onof defined benefit
available-for-saletranslation
comprehensive
hedgesplans
securities
adjustment
incomeBalance at beginning of
period

1,216

1,918

33

2,454

5,623

Share
acquisitionrights

Noncontrollinginterests

‒

1,545

Cumulative effects ofchanges in accounting
policies
Restated balance

Total net
assets

76,056

(66)
1,216

1,918

33

2,454

5,623

‒

1,545

75,989Change during the year
Dividends of surplus(4,072)

Net income attributableto owners of the parent

8,969

Acquisition of treasury
shares(119)

Disposition of treasury
shares15

Increase (decrease) incash resulting frommerger of consolidated
subsidiaries-

Net changes of items
other thanshareholders' equity(610)(1,918)336

188(2,004)9

156(1,838)

Total change during the
year

(610)

(1,918)336

188(2,004)

9

156

2,956

Balance at end of period

605

‒

369

2,643

3,619

9

1,702

78,946

12

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2022

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2021
Cash flows from operating activities
Net income before income taxes and minority
interests
Depreciation
Amortization of goodwill
Impairment loss
Increase in net defined benefit asset and liability
Interest and dividend income(Gain) loss on sale of investment securities
Interest expenses(Gain) loss on sales of non-current assets
Loss (gain) on valuation of investment securities
Loss on retirement of non-current assets
Increase (decrease) in notes and accounts payable(Increase) decrease in inventories
Increase (decrease) in notes and accounts
payable–trade
Increase (decrease) in accrued consumption taxes
Increase (decrease) in deposits received
Other
Subtotal
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Interest and dividend income received
Proceeds from withdrawal of time deposits
Purchase of securities
Proceeds from sales of securities
Purchase of tangible and intangible assets
Proceeds from sales of tangible and intangible
assetsPayments for retirement of non-current assets
Proceeds
fromcontribution
received
forconstruction
Purchase of shares of subsidiaries resulting inchange 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

13

Fiscal year ended
March 31, 2022

14,57014,99014,657
1,143
106
- 30
- 194
-1
289
- 56
353
814
286
17

14,957
975
5
- 259
- 265
- 423
268
-6
－
829
- 3,321
156

2,104

1,341

- 186
2,127
958
36,960- 4,736
32,223- 319- 1,921- 297
26,709- 5,900
20,808

245
339
- 15
214
- 12,925

305
843
- 178
880
- 13,345

366

267

- 153

- 243

359

260

- 1,085- 2,664- 3,021- 45- 1,630
－
249
- 11

－
- 571
16
- 117

- 17,068- 14,592

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2022

(Millions of yen)
Fiscal Year Ended

Fiscal Year Ended

March 31, 2021

March 31, 2022

Cash flows from financing activities- 297- 8,475- 3,935
12,436- 9,987- 118-0- 3,678-7- 14,064
-0
1,089
4,046
5,136

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
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

14

- 275
1,370
- 4,039
10,500- 10,148
- 112
- 119
- 4,072-6- 6,905
0
- 688
5,136
4,447

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2022

(5) Notes to the Consolidated Financial Statements(Notes on Premise of Going Concern)
There is no relevant information.
(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition)
The Company adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020,
hereinafter referred to as the "Accounting Standard for Revenue Recognition") from the beginning of the current fiscal year
and recognized revenue when control of promised goods or services is transferred to customers in an amount that is
expected to be received in exchange for those goods or services.
With regard to the application of the revenue recognition accounting standard, etc., in accordance with the transitional
treatment stipulated in the provisions of paragraph 84 of the Accounting Standard for Revenue Recognition, the cumulative
effect of retrospectively applying the new accounting policy prior to the beginning of the current fiscal year is added or
deducted from retained earnings at the beginning of the current fiscal year, and the new accounting policy is applied from the
beginning balance of the current fiscal year. However, the new accounting policy has not been applied retrospectively tocontracts for which the method set forth in paragraph 86 of the Revenue Recognition Accounting Standard has been appliedand substantially all revenue amounts have been recognized in accordance with previous treatment prior to the beginning of
the current fiscal year. In addition, the Company applies the method stipulated in paragraph 86 of the Revenue Recognition
Accounting Standard and paragraph (1) of the Written Accounting Standard. Contract modifications made prior to thebeginning of the first quarter of the current fiscal year are accounted for under the terms of the contract after reflecting allcontract modifications, and the cumulative effect of these modifications is adjusted to retained earnings at the beginning of thecurrent fiscal year.
From the current fiscal year, the Company changed its practice to state notes and accounts receivable - trade, which had
been stated under current assets in Consolidated Balance Sheets for the previous fiscal year, as part of notes and accounts
receivable - trade, and contract assets. However, pursuant to the transitional provisions in Paragraph 89-2 of the Revenue
Recognition Accounting Standard, the Company did not reclassify balance sheet amounts for the previous fiscal year
according to a new presentation.
The adoption of this accounting standard is not expected to have a material impact on the consolidated financial statements.
(Application of Accounting Standard for Calculation of Fair Value)
The Accounting Standard for Calculation of Fair Value (ASBJ Statement No. 30, July 4, 2019, hereinafter referred to as the"Accounting Standard for Calculation of Fair Value") and other standards were applied from the beginning of the current fiscal
year, and in accordance with the transitional treatment stipulated in paragraph 19 of the Accounting Standard for Calculationof Fair Value and paragraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4,2019), the new accounting policy stipulated by the Accounting Standard for Calculation of Fair Value will be applied in the
future. The adoption of this accounting standard will have no impact on the consolidated financial statements.
(Additional Information)(Improper Behavior by Our Former Subsidiary Employees)
In a tax examination conducted by the Nagoya Regional Taxation Bureau in July 2021, it was discovered that a former
employee of two of our subsidiaries had misappropriated the Company's funds due to fictitious claims, fraudulent remittances,
etc. In response, we launched an internal investigation committee chaired by an attorney who conducted an investigation andreceived a survey report in December 2021.
The amount of 496 million yen pointed out by the Nagoya Regional Taxation Bureau for this wrongdoing was recorded as
extraordinary loss. I In addition, an estimated amount of 83 million yen for additional tax collection due to fraud detection is
included in income taxes, inhabitant taxes and enterprise taxes.

15

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2022

(Segment Information)
Segment Information
1. Outline of reportable segments
The Group’s reportable segments are constituent units of the Group for which discrete financial information can be obtained,
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: Energy; Construction, Equipment, and Real Estate; CATV; Information andCommunications; and Aqua.
In the Energy segment, the Group sells LP gas, liquefied natural gas (LNG), and other high-pressure gases; markets
petroleum products; supplies city gas; sells relevant products; performs construction of energy-related facilities andequipment; and provides security services.
In the Construction, Equipment, 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-furnishedequipment and appliances in buildings; and operates home renovation, civil engineering, and electrical construction
businesses.
In the CATV segment, the Group provides broadcasting and Internet connectivity services 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 theBasis of Preparing the Consolidated Financial Statements."
Profit for reportable segments is based on operating profit, and intra-segment sales and transfers are conducted at prevailingmarket prices.

16

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2022

3. Information Related to Sales, Profit and Losses, Assets, Liabilities, and Other Items for Each Reportable Segment
For the fiscal year ended March 31, 2021 (April 1, 2020 – March 31, 2021)(Millions of yen)
Reportable segments
EnergyConstruction,
Equipment,
and Real
EstateSales to externalcustomers

77,380Intra-segment
sales andtransfer
Total

CATV

Information
andCommunications

Aqua

23,17733,74550,735

194

1,035

600

Amount inconsolidated
Adjustments
statements(Note 2)of income(Note 3)

Total

Others(Note 1)

Total

7,622

192,661

4,065

196,726‒

196,726

3,835

189

5,855

131

5,986

(5,986)‒

Sales

77,574

24,212

34,34654,570

7,811

198,516

4,196

202,713(5,986)

196,726

Segment profit(loss)

6,115

1,257

4,719

3,086

259

15,438(244)

15,19432

15,226

Segment assets

68,046

27,727

38,571

31,0684,801

170,215

4,944

175,160

3,813

178,974

Depreciation

4,241

713

5,340

3,245

640

14,182

77

14,260397

14,657

Amortization of
goodwill

417

65

595

23

‒

1,101

41

1,143

‒

1,143

Increase intangible andintangible assets

7,138

828

7,481

3,080

467

18,996163

19,159408

19,567

Other items(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, nursing care, and insurance.
2. Adjustments are as follows:(1) Adjustments to segment profit (loss) are eliminations due to intra-segment transactions.
(2) Adjustments to segment assets, depreciation, and increase in tangible and intangible assets are due tocompanywide assets, depreciation, and increase in tangible and intangible assets that are not allocated toindividual 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, 2022

For the fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)(Millions of yen)
Reportable segments
EnergyConstruction,
Equipment,
and Real
EstateCATV

Information
andCommunications

Sales to externalcustomers

86,77027,78032,572Intra-segment
sales and transfer

184

1,608

Total

Others(Note 1)

Total

Amount inconsolidated
Adjustments
statements(Note 2)of income(Note 3)

Aqua

Total

51,398

7,629

206,151

4,540

210,691‒

210,691

516

5,037

218

7,565

162

7,727

(7,727)‒

Sales

86,95429,38833,08956,435

7,847

213,716

4,703

218,419(7,727)

210,691

Segment profit(loss)

6,059

1,706

5,189

3,355

46

16,357(103)

16,254(460)

15,794

Segment assets

72,61730,04239,60629,757

5,093

177,117

4,628

181,745

2,728

184,473

Depreciation

4,514

746

5,364

3,143

693

14,46380

14,543413

14,957

Amortization of
goodwill

308

224

348

42

‒

923

52

975

‒

975

Increase intangible andintangible assets

7,698

514

7,401

2,699

717

19,031

61

19,093401

19,494

Other items(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, nursing care, and insurance.
2. Adjustments are as follows:(1) Adjustments to segment profit (loss) are eliminations due to intra-segment transactions.
(2) Adjustments to segment assets, depreciation, and increase in tangible and intangible assets are due tocompanywide assets, depreciation, and increase in tangible and intangible assets that are not allocated toindividual reportable segments.
3. Segment profit (loss) is adjusted to match operating profit in the consolidated statements of income.
[Reference Information]
For the fiscal year ended March 31, 2021 (April 1, 2020 – March 31, 2021)
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, plantand 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 of income.

18

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2022

For the fiscal year ended March 31, 2022 (April 1, 2021– March 31, 2022)
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, plantand 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 of income.
Information Related to Impairment Losses of Non-current Assets by Reportable Segment
For the fiscal year ended March 31, 2021 (April 1, 2020 – March 31, 2021)(Millions of yen)
Construction,
Equipment,
and Real
EstateEnergyImpairment
losses‒Information
andCommunications

CATV

79

‒

Aqua

‒

Corporate or
elimination

Others

‒

26

‒

Total

106

For the fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)(Millions of yen)
Construction,
Equipment,
and Real
EstateEnergyImpairment
losses‒3

Information
andCommunications

CATV

‒

‒

19

Aqua

Corporate or
elimination

Others

‒

2

‒

Total

5

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2022

Information Related to Amortization of Goodwill and Unamortized Balance by Reportable Segment
For the fiscal year ended March 31, 2021 (April 1, 2020 – March 31, 2021)(Millions of yen)
EnergyConstruction,
Equipment,
and Real
EstateCATV

Information
andCommunications

Aqua

OthersCorporate or
elimination

Total

Amortization
during the period

417

65

595

23

‒

41

‒

1,143

Balance at endof period

1,222

684

2,986

181

‒

183

‒

5,258

For the fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)(Millions of yen)
EnergyConstruction,
Equipment,
and Real
EstateCATV

Information
andCommunications

Aqua

OthersCorporate or
elimination

Total

Amortization
during the period

308

224

348

42

‒

52

‒

975

Balance at endof period

1,120

1,800

2,637

328

‒

153

‒

6,040

Information on Negative Goodwill Generated for Each Reportable Segment
For the fiscal year ended March 31, 2021 (April 1, 2020 – March 31, 2021)
Not applicable.
For the fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)
Not applicable.

20

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2022

(Per-Share Information)
For the fiscal year ended March 31,
2021 (April 1, 2020 – March 31, 2021)

For the fiscal year ended March 31,
2022 (April 1, 2021 – March 31, 2022)

Net assets per share (yen)568.93590.21

Basic earnings per share (yen)

67.32

68.49

‒

‒

Diluted earnings per share (diluted)(Notes) 1. The basis of calculating the basic earnings per share and diluted earnings per share is as follows:
For the fiscal year ended March 31,
2021 (April 1, 2020 – March 31, 2021)

For the fiscal year ended March 31,
2022 (April 1, 2021 – March 31, 2022)

67.32

68.49

8,815

8,969

‒

‒

8,815

8,969

130,963

130,971

‒

‒

‒

‒

(1) Basic earnings per share (yen)(Basis for calculation)
Net income attributable to ownersof parent (millions of yen)Amounts not attributable tocommon shareholders (millions ofyen)
Net income attributable to ownersof the parent available to commonshareholders (millions of yen)
Average number of commonshares outstanding during theperiod (thousands of shares)(2) Diluted earnings per share(Basis for calculation)
Adjustments to net income
attributable to owners of parent(millions of yen)
A summary of those residual shares
not included in calculation of diluted
earnings per share due to theabsence of a dilution effect which
involves material changes from theend of the previous consolidated
fiscal year

Share acquisition rights following a
resolution of the Board of Directors
meeting on October 28, 2021
Number of share acquisition rights:
7,739(Common shares: 773,900 shares)‒

2. The number of common shares outstanding at the end of the fiscal year used in the calculation of net assets per
share excludes the Company’s shares held by Custody Bank of Japan, Ltd. (Trust Account E) (391,300 shares forthe fiscal year ended March 31, 2021; 496,900 shares for the fiscal year ended March 31, 2022). The average
number of common shares outstanding used in the calculation of basic earnings per share excludes the Company’s
shares held by Custody Bank of Japan, Ltd. (Trust Account E) (394,416 shares for the fiscal year ended March 31,
2021; 385,805 shares for the fiscal year ended March 31, 2022).
3. Diluted earnings per share for the previous fiscal year is not stated because there is no potential dilution. Diluted
earnings per share in the fiscal year under review is not presented because there are no dilutive shares.

(Important Subsequent Events)
There is no relevant information.

21

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2022

4. Other(1) Changes in Executive Positions
1) Change of representative director
No items to report2) Other Changes in Executive Positions
No items to report22