New Medium-Term Management Plan
2025

Tuesday, May 9, 2023
TOKAI Holdings Corporation (Code: 3167)
Katsuo Oguri, Representative Director, President and CEO

0

Introduction
1. Analysis of Future Trends in the Market Environment
2. 2030 Vision
3. Initiatives for 3-Year Period (Key Themes)
4. Core Strategy  Growth of Business Profitability
5. Core Strategy  Strengthening of Foundations for Sustainable
Growth
6. Core Strategy  Full Energization of Human Capital andOrganizations
7. Pursuit of Optimization of Group’s Organizational Structure
8. KPIs under Medium-Term Management Plan
9. Management Resources Allocation Policy and Shareholder Returns
10. Ensuring Compliance and Corporate Governance(Contact for inquiries)
Management Strategy Department, Management Strategy
Division, TOKAI Holdings Corporatione-mail：hd-info@tokaigroup.co.jp
Phone: +81-54-275-0007
1

Introduction

Message from the President & CEO
Our company has been dedicated to providing a range of services that are integral to ourcustomers' daily lives, including energy, telecommunications, CATV, real estate, and water
services.
Until now, TOKAI Holdings has played a central role in driving the growth of our group, instilling acommitment to "supporting our customers' lives" throughout our organization.
Looking ahead, we aim to further grow by focusing on our businesses and promoting initiatives
that directly respond to the needs of our customers.
Additionally, we are transitioning to a network-based structure that encourages organic
cooperation. While maintaining a strong emphasis on discipline, we are committed to fostering anenergetic and engaged workforce.

Representative Director, President and CEO of TOKAI Holdings Corporation
Katsuo Oguri
Joined TOKAI Corporation in 1982. Served as Executive Officer and thenManaging Director of TOKAI Corporation from 2008 and 2011 respectively.
Appointed to current position in September 2022, after serving as a Directorof TOKAI Holdings Corporation.

2

Introduction

Corporate Philosophy of the TOKAI Group (TOKAI-WAY) TOKAI Group provides comprehensive lifestyle services for customers' daily lives.

Corporate
Philosophy(The TOKAI Group’s credo)

Mission(The mission that the TOKAI Groupshould fulfill for the good of society,customers, and shareholders)Vision(Long-term business goal
the TOKAI Group should target)

ValuesFor Customers’ Livelihoods
Along with the region, together with the earth,
we will continue to grow and develop.

Change, Challenge and Realize.

Through sustained progress from nationwide to
global, we provide customers with the products
or services in one stop.

Always smile and impression with you.

(Shared values of TOKAI Group employeesthat they should value in taking actions)3Introduction

Summary of FY2022 (1) Net sales have increased for six consecutive years. The customer count increased by more than
100,000 from the end of FY2021, to 3.3 million.
 Excluding share of loss of an entity accounted for using the equity method in Vietnam, capitalefficiency continued to live up to stock market expectations.
FY2021Results

YoY
ChangeFY2022
Results

210.7

230.2

+19.5

Operating profit (billion yen)

15.8

14.9

-0.9

Ordinary profit (billion yen)

15.9

13.3

-2.6

9.0

6.5

-2.5

Cash flow from operating
activities (billion yen)

20.8

21.2

+0.4

Customer numbers (millions)

3.19

3.30

+0.11

Payout ratio

46.7%

64.8%

+18.1%

ROE

11.8%

8.2%

-3.6%

ROIC

9.2%

8.3%

-0.9%

EPS (yen)

-68.5

49.4

-19.1

Sales (billion yen)

Profit attributable to owners ofparent (billion yen)

Strengthening the
profit structure toenable Group towithstand changes inthe environment isimportant for mediumto-long-term growth
going forward.

4

Introduction

Summary of FY2022 (2) In the Energy, CATV and Aqua segments, customer gains pushed up profits, and Information andCommunications for corporate clients was also strong.
 Decrease profit in the Energy business is due mainly to the rise in gas purchase costs(prioritization of competitiveness, with cost pass-through in some cases) In Information and Communications for individual clients, the customer count far exceeded thelevel a year earlier; however, acquisition costs were higher.

160.0Year-on-year comparison in full-year
operating profit by segment

Operating profit(billion yen)

15.79

-1.55
15.5

150.0

+3.3
+0.33

-0.43
4.3

+0.2
+0.02

+2.1
+0.21

+0.55
+5.5

149.2
14.92

140.0
Information andCommunications

EnergyIncrease incustomers
Purchasecosts
Acquisition
costs
Temperatureand others

130.0

120.0

Other

+0.65
-1.90
-0.02
-0.39

For corporateclients
For individual
clients
Acquisition
costs

+0.48

CATV
Increase incustomers

+0.56
-0.49

+0.33

Construction,
Equipment, andReal Estate
Renovation+0.08

Building
facilities-0.51

Others andadjustments

Aqua
Increase incustomers
Acquisition
costs

+0.04
+0.17

Wedding
ceremonies
and others+0.27

Adjustments

-0.25

+0.11

110.0

FY2021
分類 1
Results

エネルギー

情報通信

CATV

建築不動産

アクア

その他調整額FY2022
分類 7
Results* Changes in operating profit disregard allocation of indirect costs5

1. Analysis of Future Trends in the Market Environment

EconomyGlobal Environment• Actualization of currency fluctuation risks• Rising inflation• Increasing geopolitical risks such UKraine crisis• Surging resource and electricity prices due to tight energy
supplies• Trend toward decarbonization• Growing awareness of sustainability• Sense crisis in face of natural disasters andincreasing disaster management needs

Acceleration ofenvironmental
changes• Population decline/ Falling birthrate andaging population• Necessity of diversity and wellbeing• Expansion of new work styles• Decline in working age population and intensification ofcompetition to attract human resources• Changes in lifestyles and consumer behavior post-COVID

Society and Local
Communities• Accelerating DX including utilization of AI and robotics• Spread of 5G services• Shortage of engineers as a result of rapid changes in IT
technology• Expansion in customer contact points combining online
and offline

Technology

Growing uncertainty of market environment, and acceleration ofchanges in customer values
Emergence of need for action to address medium-to-long termissues for the sustainable growth of society
6

2. 2030 Vision
Long-term direction towards 2030

2Foundations for
growth３
Human resources andorganizations

Medium-Term
Management Plan 2025

1
Business

Expand service areas and propose
services tailored to customer needs
which facilitate the realization ofdiverse lifestyles

2030 Vision
Double earnings
400.0 billion yen
Net sales:
30.0 billion yen
Operating profit:
Customer numbers: 5 million

Customer

Employees

Implement initiatives for
decarbonization

Improve wellbeing
Local
communities

Shareholders
and investors

Develop human resources andworking environments which will
help put management strategies
into practice and enhance
corporate value

Propose value which
revitalizes local
communities andmakes consumers
lifestyles richer andmore enjoyable

Business partners andpartner companies

Achieve high capitalefficiency andstable shareholder
returns

Enhance service
lineup throughcollaboration withpartners7

3. Initiatives for 3-Year Period (Key Themes) Growth of business earning power
-1
Expansion of earnings base
(Operating area/Customer
count)

-2
Rollout of new services(Services that solve social
issues)Growth interms of“fruit”

 Strengthening of foundations forsustainable growth“trunk”

 Full energization of human capitaland organizations

Growing~ organizations with a culture of openness where
employees can work with enthusiasm ~Growing“roots”
8

４．Basic strategy ❶Growth of business earning power Growth of business earning power  - 1 Expansion of earnings base

Leverage sales strength to steadily expand the customer base
based on an assessment of profitability - 1 Expansion of earnings base
(Operating area/Customer count)~ Expansion into new operating areas and intensification ofoperations in existing areas ~Reexamine management resources
and concentrate on core businesses.
~ Optimization of business portfolio fromthe viewpoint of capital efficiency ~9

４．Basic strategy ❶ Growth of business earning power Growth of business earning power  - 2 Rollout of new services

Leverage the frontline capabilities of operating companies
who know their customers to roll out new services in
response to increasingly diverse lifestyles and values

 - 2 Rollout of new services(Services that solve social issues)~ Monetization of new services and business expansion ~Convenient
Essential
services for alifestyleinfrastructure moreenjoyable life

Sustainable
lifestyleservices

Examples:Childcare
Healthcare
Carbonneutrality
Gas, etc.

Examples:Fitness
Shopping
services
Laundromat,
etc.

Examples:EnergyInformation andCommunications,
etc.

Tap
Tap into
into customer
customer needs
needs

10

４．Basic strategy ❶ Growth of business earning power Growth of business earning power Initiatives by segment
Segment
EnergyConstruction,
Equipment,
and Real Estate
12%

Other
2%

CATV
15%
Information andCommunications
23%

Energy45%

 Rollout of new services• Further development of existing
operating areas (Improvement of
ARPU through cross-selling)• Expansion of sales capabilities inWestern Japan and the Chūkyō
region• Implementation of M&A and alliancesin LP gas and city gas• Rollout of new services for regional
revitalization• New services that solve social issues（Increased sales of PPA TOKAI ZEROSOLAR and other disaster management
services）

Information andCommunications
Sales
53.9 billion yen• Expansion of business areas inJapan• Overseas expansion of cloud services

CATV• Acceleration of growth of two mostrecent acquisitions (Sendai andOkinawa)• Enhancement of internet access services
and optional services• Development and provision of new
businesses and new services throughfurther development of regional business• Business expansion in Chukyo
region• Winning of combined orders(construction, equipment installationand industrial) through interdivisional
cooperation• Expansion of lineup of types of work(construction, equipment installation,
electrical work, repaid and maintenancework)• Sale of water and energy self-sufficiencytype housing system (GQ System）• Energy-saving initiatives (solar and EV
charging points）• Strengthening of sales in Shizuoka,
Kanto and Chukyo (returnable/oneway）• Sales of mains-fed pure water dispenser
nationwide[Breakdown of FY2022 net sales]

Aqua
3%

 Expansion of earnings base
(Operating areas/Customer count)Sales
102.5 billion yen

Sales
34.5 billion yen
Building facilities
Real estateSales
26.8 billion yen

Aqua
Sales
7.5 billion yen

11

４．Basic strategy ❶ Growth of business earning power[Strategies by segment] Energy business Environment surrounding
the energy business

Our Strengths
 Market leader in Shizuoka Prefecture, third largest
LP gas supplier based on number of customers
 Proposals in line with regional characteristics
 Participation in regional cooperation and regional
contribution-based urban development Destabilization of gas purchase price and higher costs
as a result of Russia-Ukraine conflict Decreased demand for household use against a
backdrop of growing energy-saving awareness driven
by surging energy prices, and population decline
 Carbon neutrality by 2050
Trend of propane CP (USD/ton)
1000
800
600

2021年

2022年

1月

3月

9月

11月

7月

5月

1月

3月

9月

11月

7月

5月

1月

2020年

3月

9月

11月

7月

5月

1月

3月

9月

2019年

11月

7月

5月

1月

200

3月

400

2023
年

Policies for initiatives

 Expansion into highly efficient operating areas through intensification of sales(points lines planes) Improvement of business efficiency and customer satisfaction through DX 
Differentiation from competitors
 Rollout of new services for regional revitalization
12

４．Basic strategy ❶ Growth of business earning power[Strategies by segment] Energy business 
Improvement of business efficiency
and customer satisfaction through DX

Expansion of operating areas
 Expand into Western Japan and Chukyo region•Establish 8 new bases over the three years fromFY2023 to FY2025
 Pursue M&A and alliances in LP gas and city gas

Expansion into Western Japanand Chukyo region

 Shift to electronic approval based on data instead of paper
documents and use LPWA* networks• Go paperless and increase businessefficiency through use of tablets andelectronic approval• Submission of electronic meterreadings through mypage• Improvement of delivery forecast
accuracy through real time communication with IoT equipment
LPWA: Low Power Wide Area

Rollout of new services forregional revitalization
 Make everyday life moreconvenient• Laundromat business Cooperate with local governments
and contribute to regions• Camping grounds, roadside stations

On premises of showroom
in Shimada city

Bikuishi Quiet Night Camping Ground （Tentative Name）

Opened in August 2022

The administration bloc
and toilets serves as avisitor center for visitors to
Bikuishi in addition to
camping ground users.

Existing operating areas
for LP gas and city gas

Contributes to regional
disaster management as asite for the stockpiling ofdisaster supplies andaccommodation in the eventof disaster

Numerical targets
Net sales
2022

102.5
billion yen

2025

108.7
billion yen

Operating profit
2022

7.4
billion yen

2025

7.8

Customer numbers

billion yen

2022

0.82
million2025

0.94
million13

４．Basic strategy ❶ Growth of business earning power[Strategies by segment] Information and communications business (for corporate clients）
Environment surrounding information andcommunications business (for corporate clients)
 Rapid advances in digital technologies globally Growing demand for DX, accelerated spread ofcomputerization and digitization of governments Increase in demand for network expansion reflecting
the spread of 5G
 Opportunities for businesses for new lifestyles,
including workstyles

Our Strengths
 Track record of continuously undertaking
development projects mainly for major systemvendors
 Ownership of optical fiber network that extends fromthe northern Kanto area to the western Japan areaand multiple data centers
 Proven track record as AWS advanced service
partner achieved through expansion in volume ofexternal sales and connection services

A top AWS
partner in Japan
with over

AWS projects
Results

1,500

Over 200

AWS validated
certifications

Over 300

AWS
connections

Policies for initiatives

 Expansion of business areas in Japan and overseas
 Strengthening of digital foundations supporting area expansion
14

４．Basic strategy ❶ Growth of business earning power[Strategies by segment] Information and Communications business (for corporate clients) 
Expansion of business areasin Japan and overseas

Strengthening of digital foundations
supporting area expansion

 Expand into Southeast Asia where the population isincreasing and a shift to cloud computing is expected
as a result of rapid digitalization

 Aim to become an AWS Premium Partner asa selling point for business expansion both inJapan and overseas

 Expansion of business areas in Japan••

Aiming to be 13th company to upgraded topremier tier in Japan

Extension of network into Kyushu region
Enhancement of network in Tokyo, Osaka and Okayama

FY2025

FY2022
FY2024FY2023Large capacity opticalfiber communication
service

Relation Ethernet
network renewal

Cloud connection
ringTokyo,
Nagoya andOsaka

Kyushu extension

Kanto

KyushuFY2022
FY2023

FY2023 Cultivate digital human resources andstrengthen the framework for meeting the DX
needs of corporate clients

New Tokyo-Osakaring

FY2024

New Okayama ring

Numerical targets
Net sales
2022

29.5 billion yen

2025

39.0 billion yen

Operating profit2022

4.7 billion yen

2025

5.1 billion yen
15

４．Basic strategy ❶ Growth of business earning power[Strategies by segment] CATV business Environment surrounding the CATV business

The market for fixed-line broadband communication services
has grown to some extent due to increased ICT use during the
COVID pandemic

Our Strengths
Extensive lineup of community channels

Close relationships with regions based on cooperation withgovernment

The market for paid broadcasting services is shrinking butdemand for CATV paid broadcasting services, which account forthe majority of such services, is expected to remain unchanged.

Reliable Internet services using our own optical fiber network(2) Forecast of households subscribing to paid
broadcasting platform (10 thousand households）(1) Forecast of households subscribing to fixed-line
broadband services (10 thousand households)

Satellite
broadcasting(Fiscal year)(Fiscal year)

Source: <paid broadcasting>: IT Navigator 2023 published by Nomura Research Institute (NRI) in December
2022 <fixed-line broadband>: IT Navigator 2022

Policies for initiatives
 Expansion of customer base in existing and new areas and strengthening ofcontact points with customers
 Generation of new revenue streams though new businesses and new services
16

４．Basic strategy ❶ Growth of business earning power[Strategies by segment] CATV business Generation of new revenue streams
though new businesses and new services

Expansion of customer base in new areas

Get two most recent acquisitions (Sendai and Okinawa) on
track for growth• Focus on improving customer density in Sendai andOkinawa, which are new operating areas, and develop two
acquisitions into telecommunications carriers/broadcasters
that support their local regions.

Sendai Map

Enhancement of internet access services and optional
services• Home visit support, remote support, Internet security and meshWifi

Development and provision of new businesses and newservices through further development of regional business Business operations have been stable
over the past three years and pace ofcustomer gains is in line withexpectations.

• Home appliance subscription and empty house management
services• Health businesses starting with fitness gym• Businesses that utilize locally produced electricity starting withbicycle sharing service• Businesses for communal living starting with house cleaning Achieve profitability in FY2023 andcontinue growing

Okinawa

 Brought in sales personnel from TCN in
2023
 Prepare to accelerate customer gains
focusing on areas where FTTH isalready available

Numerical targets
Net sales
2022

34.5 billion yen

2025

37.9
billion yen

Operating profit2022

6.2 billion yen

2025

6.4
billion yen

Customer numbers
2022

1.29 million

2025

1.35
million17

４．Basic strategy ❶ Growth of business earning power[Strategies by segment] Information and communications business (for individual consumers), construction,equipment, and real estate business, and aqua businessNumerical targets

Policies for initiatives
2022

Increase in number of customers acquired throughstronger cooperation among channels(For individual Enhance the lineup of services
clients)
Information andCommunications
business

Net sales 24.4 billion yen
Operatingprofit

0.6 billion yen

Customernumbers0.84 million

2025

25.9 billion yen
1.4 billion yen
0.93 million

 Business expansion in Chukyo region
 Expansion of lineup of types of work
Net sales 26.8 billion yen• (construction, equipment installation, electrical work,
repaid and maintenance work)

Building facilities
Real Estate Rollout of new services related to disasterbusinessmanagement and energy conservation

 Strengthening of sales in Shizuoka, Kanto and Chukyo(returnable/one-way）

Operatingprofit2.0 billion yen

Net sales

7.5 billion yen

Operatingprofit0.5 billion yen

Customernumbers0.17 million

37.3 billion yen
3.0 billion yen

8.7 billion yen

 Start of sales of mains-fed pure water dispensers

Aqua business• Expand sales mainly in Western Japan with a view to nationwide
rollout

0.8 billion yen
0.19 million
18

5. Core strategy  Strengthen the foundations for sustainable growth

Low carbon/Decarbonization initiatives
Work together with communities, customers and suppliers to help reduce CO2 emissions and achieve carbon neutrality by 2050

Promote GX in clients’energy use● Encourage use of energy-saving devices• (Home use) Encourage widespread use of high efficiency
boilers and hybrid boilers• (Industrial use) Encourage widespread adoption ofcogeneration● Encourage adoption of renewable energy• Promote solar power generation (including PPA) andwidespread use of storage batteries● Work with local communities to promote
low carbon and decarbonization• Promote public sector energy conservation anddecarbonization• Promote local production of energy for local consumption● Action for the decarbonization of raw
materials• (～2030) Supply of carbon neutral gas*• (～2050) Supply of carbon-free fuel* Carbon-neutral LPG/LNG with the carbon emissions from the supply chain offset through the purchase ofcarbon credits

Promote GX in ourown business
Promote GX in our own
activitiesbusiness activities●KPIs for decarbonization• Reduce emissions by more than 13,000 tons in 2030 andachieve carbon neutrality in 2050
Actual GHG
emissions2021

25,000 tons

Emissions target
2030

2050

At least -50%

-100%

At least
13,000 tons

-25,000 tons

●Key initiatives• Improvement of delivery efficiency and shift to automatedmeter readings in the LP gas business through DX• Installation of our own solar power generation facilities• Switch to renewable energy-derived electricity at all business
sites

19

6. Core strategy ❸ Full energization of human capital and organizations

Full energization of human capital and organizations
 Focus on fully energizing human capital and organizations including cultivating human resources and developing
the working environment on the basis that investment in people is not a cost but investment to enhance corporate
value
KPIs for human capital
Long-term,
sustainable
FY2022 FY2025 FY2030
enhancement of
results targets targets(Final fiscal year
corporate valueof Medium-termManagement
Plan)

Reinvestment in
human resources２
Achievement ofmanagement
strategies

４

Full energizationof human capitaland organizations

Enhancement ofcorporate value

Human capitaldevelopment

Developmentof internal
environment

３

Strengths
indicator*1

56.5%

65.0%

70.0% *3

Self-directed career
management
indicator*2

65.2%

70.0%

80.0% *3

Psychologicalsafety indicator

62.7%

70.0%

80.0% *3

WLB (internal
environment
development)
indicator

62.2%

70.0%

80.0% *3

Ratio of healthliterate employees

68.1%

80.0%

85.0%

Ratio of female
managers

1.4%

3.7%

10.0%

Zero employees resigning
for nursing care purposes１

Investment in
human capital*1 Measures the extent to which employees can utilize their strengths in their work
*2 Measures the extent to which employees self-directed career management is translated into action*3 The ratio of positive questionnaire responses is used as an indicator.

20

6. Core strategy ❸ Full energization of human capital and organizations

Specific measures for fully energizing human capital and organizations

Human resources who are self-directed and full of energy andenthusiasm and organizations which utilize their individuality (strengths)

Ideal
Ideal individuals
individuals

Strengthening of
human capital

Ideal
Ideal organizationsorganizations

Improvement of
wellbeing Career development support
system Support self-directed career development todevelop human resources who can think and act
for themselves Reskilling Support employees in acquiring DX
qualifications and developing their skills to help
them continue learning in a self-directed mannerand develop skills in response to the changing
environment

 Support for diverse work styles▼
Achievement ofcorporate growthin the medium
and long term Promote the development of an environmentand systems that allow employees todemonstrate their specific skills

 Wage system that increases
employees’ job satisfaction
 Increased wages by 5% in real terms in FY2023
Will continue responding flexibly to labor market
conditions going forward
 Introduced performance-linked bonus system Excellent health andproductivity management
 Developed excellent working environments inwhich employees can continue working in good
health21

7. Optimization of Group’s organizational structure
Transition to structure that allows each operating company to fully demonstrate their frontline (gemba)

strengths,with TOKAI HD bringing the operating companies together as a group andimplementing groupwide strategies① New organizations for development of foundations for sustainable growthEstablishment of Sustainability Management Promotion Office and GX Promotion OfficeInformation andCommunications

Energy② Review and reinforcement of HD functions
Establishment of Corporate Governance Promotion Office
CATV

CATV

Aqua

Other
Segment

Building facilities
Real estate

BridalNursingcare

22

8. KPIs under Medium-Term Management Plan Aim for sustainable growth in sales and profit throughout the three years, whilst balancing expansion
and strengthening of earnings base and shareholder returns
 Maintain a level of capital efficiency (ROE and ROIC) that meets market expectations
FY2022
Results

FY2023Plan

FY2024Plan

YoY

FY2025
Plan

YoY

YoY

230.2

240.0

+9.8

250.0

+10.0

260.0

+10.0

Operating profit (billion yen)

14.9

15.0

+0.1

16.0

+1.0

17.5

+1.5

Ordinary profit (billion yen)

13.3

15.0

+1.7

16.0

+1.0

17.5

+1.5

Profit attributable to ownersof parent (billion yen)

6.5

8.5

+2.0

9.0

+0.5

10.0

+1.0

Cash flow from operating
activities (billion yen)

21.2

21.7

+0.5

23.0

+1.3

24.4

+1.4

Customer numbers(millions)

3.30

3.38

+0.08

3.48

+0.1

3.57

+0.09

64.8%

49.2%

-15.6%

ROE

8.2%

10.3%

+2.1%

10.4%

+0.1%

10.8%

+0.4%

ROIC

8.3%

8.0%

-0.3%

8.2%

+0.2%

8.7%

+0.5%

EPS (yen)

49.4 65.1 yen

+15.7

68.9

+3.8

76.6

+7.7

Net sales (billion yen)

Payout ratio

40‒50%

23

9. Management resources allocation policy and shareholder returns

Allocation of Cash Flow
Prioritize the allocation of cash flows from operating activities in existing businesses to aggressive investment for
further growth while also paying stable dividends

Cash flow from operating
activities over 3 years
Approx. 69.0 billion yen

Cash inflow

Routineinvestment
Approx. 15.0
billion yen

Cashoutflow

Details of routine
investment

Shareholder
returnApprox. 13.0
billion yen

Investment for growth
Approx. 40.0 billion yen

Policy on investment for growth

Shareholder return policy Expansion and strengthening of earnings

 Maintenance and upgradingof equipment, etc.

Payout ratio 40-50%

base32.0 billion yen

Energy business 6.0 billion yen

Energy business 7.0 billion yen

CATV business 8.0 billion yen

Information and Communications business 17.0 billion yen

Other 1.0 billion yen

CATV business 8.0 billion yen

Policy offlexibly
acquiring treasury
shares Investment in new services and renewableenergy, etc. 8.0 billion yen(In addition to the foregoing, M&A will also be
implemented strategically and flexibly)

24

9. Management resources allocation policy and shareholder returns

Dividend policy
Dividend
policy• Pay stable and continuous dividends to shareholders whilst also giving consideration toreinforcement of the management structure and future business expansion⇒ Plan to pay dividends at a payout ratio of 40% to 50%
70

60

Plan to pay
dividends at apayout ratio of
40% to 50%

54.7%

52.9%
50

70.0%

64.8%

46.7%

47.2%

46.7%

44.2%

44.5%

43.4%

44.6%

49.2%

60.0%

50.0%

40.2%
40.0%

40
35.1%
30

30

28

28

28

28

yen/shareyen/shareyen/shareyen/share

14

14

14

16

14

14

14

14

6
20

10

12

12

12

12

yen/shareyen/shareyen/shareyen/share

6

6

6

6

6

6

6

6

14
yen/share

32

32

yen/shareyen/share

30.0%
17

16

16
20.0%

11

8
6

32
yen/shareyen/share

11

15

16

16

FY2022

FY2023

10.0%

0.0%

0
FY03/12 FY03/13 FY03/14 FY03/15 FY03/16 FY03/17 FY03/18 FY03/19 FY03/20 FY03/21 FY2021

Interim dividend

Year-end dividend

Commemorative dividend

FY2024FY2025

Payout ratio
2510. Ensure compliance and corporate governance Formulate effective recurrence prevention measures and implement the following measures tofurther ensure compliance and corporate governance with a view to strengthening internal control

Complianceawareness
Business
operations
and systems

Decisionmaking
process

Measures to further ensure complianceand corporate governanceStrengthen training for officers to
instill compliance awarenessReview of processing of expenses
Strengthen checks and balances inrelation to officers
Increase transparency andeffectiveness of process

Aim to restore trust by firmly establishing corporate
governance and ensuring compliance26

The performance forecasts and forward-looking statements in these materials are based on information
currently available to the Company, and include potential risks and uncertainties. Please be aware that
due to changes in a variety of factors, actual results may differ materially from the projections and otherforward-looking statements in these materials.

Please contact us with any questions regarding these materials.
Management Strategy Department, Management Strategy Division
TOKAI Holdings Corporation
2-6-8 Tokiwa-cho, Aoi-ku, Shizuoka 420-0034, Japan
Phone: +81-(0)54-275-0007
https://tokaiholdings.co.jp
e-mail： hd-info@tokaigroup.co.jp

27