Consolidated Financial Results for the Second Quarter of the
Fiscal Year Ending March 31, 201
2019 [Japanese GAAP]
November 1, 20188
Company name: TOKAI Holdings Corporation
Stock listing:Tokyo Stock Exchange
Stock code:
ode:
3167
7
URL:
http://tokaiholdings.co.jp
Representative:
Katsukiho Tokita, President & CEO
Contact:
Kuniyoshi Muramatsu,
Muramatsu Managing Executive Officer
Officer, General Manager of Administrative
Headquarters
Telephone: +81+81 54-275-0007
Scheduled date of filing quarterly report:
reportNovember 13,, 201
2018
Scheduled date of dividend payment:
November 30, 2018
Supplementary
upplementary materials on quarterly financial results:
Yes
Quarterly financial
inancial results briefing:
Yes (For institutional investor)(Figures are rounded
unded to the nearest million yen)yen

1. Consolidated Financial Results for the Six-months
months Ended September 30, 2018
(AprilApril 1, 201
2018 to September 30, 2018)
201(1) Consolidated Operating Results (cumulative)(% figures represent year
year-onon-yearyear changes)

Sales

Operatingng Profit

Millions of yen%

Millions of yen

Quarterly Net
IncomeAttributable to
Owners of the
ParentRecurring Profit%

Millions ofyen%Millions of yen

Six months Ended
88,840
3,475
3,580
13.9
1,736
4.6
11.6
September 30, 201
2018
Six months EndeEnded
84,911
3.3
3,114(29.3)
3,143 (29.0)
1,246
September 30, 201
2017(Note) Comprehensive income: 2,819 million yen in the Six months Ended September 30, 2018 (47.6%)
1,911 million yen in the Six months Ended September 30, 2017 (-34.2%)
Quarterly Net
Ne Incomeper Share
Six months Ended
September 30, 201
2018
Six months Ended
September 30, 2017%39.3
(47.7)

Quarterly Net Income
per Share (Diluted)

Yen

Yen

13.26

-

9.76

9.50

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

Six months Ended
164,920
62,42637.1
September 30, 201
2018Year ended
165,993
61,45036.3
March 31, 201
2018(Reference) Equity
Equity: 61,235 million yen for the Six months Ended September 30, 201860,320 million yen for the year ended March 31, 20182
(Note) "Partial revision of "Accounting Standards for Tax Effect Accounting "(ASBJ Statement No. 28, February 16, 2018) has
been applied from the beginning of the first quarter consolidated accounting period, The consolidated financial position for the
consolidated fiscal year is the figure after applying the accounting standards and others.

2. Dividends
End of Q1

End of Q2

Annual Dividend
End of Q3
Q

Year
Year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ended March 31, 201
2018



14.00
.00



14.00

28.00
.00

Year ending March 31, 201
2019



14.00


14.00

28.00
.00

Year ending March 31, 201
2019(Forecast)(Note) Revisions to most recently announced dividend forecasts: No

3. Consolidated Earnings Forecasts for the Year Ending March 31, 2019 (April 1, 2018 to March 31, 2019)(% 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

24.0

7,920

19.6

60.48

%

Year ending March
195,600
5.1
13,96027.2
13,88031, 2019(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):

Q2 FY3/2019

139,679,977 shares FY3/2018

139,679,977 shares

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

Q2 FY3/2019

8,731,006 shares FY3/2018

8,736,412 shares

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

Q2 FY3/2019

130,945,409 shares Q2 FY3/2018

127,761,866 shares(Note) Board benefit trust shares(BBT) is included in the number of year-end treasury stock.(410,800 stocks at Q2
FY3/2019, 416,600 stocks at FY3/2018) And the company shares held in ESOP trust accounts are included in thetreasury stock, which is subtracted from calculations of the average number of shares during the period (414,634
shares for the Six months Ended September 30, 2018; 417,714 shares for the Six months Ended September 30,2018).

* 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 Six months Ended September 30, 2018

[Attachment]
Contents

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

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

2. Quarterly Consolidated Financial Statements and Notes(1)

Quarterly Consolidated Balance Sheets ································································································ 5(2)Quarterly Consolidated Statements of Income, Consolidated Statements of Comprehensive Income ··············· 7(3)Quarterly Consolidated Statements of Cash Flows·················································································· 9(4)Notes on Quarterly Consolidated Financial Statements·········································································· 10(Notes on Premise of Going Concern) ····································································································· 10(Notes on Significant Changes in Shareholders’ Equity) ·············································································· 10(Additional Information) ························································································································· 10(Segment Information, etc.) ···················································································································· 11

1

TOKAI Holdings Corporation (3167) Financial Results for the Six months Ended September 30, 2018

1. Qualitative Information on Financial Results for the Period Under Review(1) Explanation of Consolidated Operating Performance
During the first half of the fiscal year ending March 31, 2019, the Japanese economy was on a gradual recovery trend,with an upturn in personal consumption and steady improvement in employment conditions. However, uncertainty in theoverseas economy including trade conflicts and a series of natural disasters that hit Japan warranted caution.
The current fiscal year ending March 31, 2019 is the second year of TOKAI Group’s medium-term management plan
Innovation Plan 2020 “JUMP.” In the first half of the current fiscal year, the Group continued to expand areas where its
services were offered, conducted M&A, and participated in new businesses to strengthen its business foundation. In
addition to realizing its existing vision of becoming a Total Life Concierge (TLC)*1, the Group began rolling out initiatives
focused on creating new service technologies with an eye toward next generation, ABCIR+S*2, in the current fiscal year.
In September 2018, the Group made CYZE Inc., a company that provides in-house developed survey systems mainly inthe online research field, a consolidated subsidiary.
Under such circumstances, in the six months ended September 30, 2018, the Group worked to increase the number ofcontinuing customers and orders by promoting measures to acquire customers. As a result, the Group booked sales of
88,840 million yen (+4.6% year on year) and posted significant growth in all profit categories, with operating profit of 3,475
million yen (+11.6% year on year), recurring profit of 3,580 million yen (+13.9% year on year), and quarterly net income
attributable to owners of the parent of 1,736 million yen (+39.3% year on year).
As of September 30, 2018, the number of continuing customers increased by 17 thousand from March 31, 2018 to 2,893
thousand, and members of the TLC Membership Service increased by 58 thousand to 757 thousand.

*1 Vision of becoming a TLC: The Group seeks to support comfortable living of customers in a comprehensive and detail-oriented way
through various services it offers, with an aim of enhancing customer satisfaction.
*2 ABCIR+S: An acronym formed by the first letters of AI, Big data, Cloud, IoT, Robotics, and Smartphones. It refers to the Group’s
strategy for technological reform.

Performance by segment was as follows.

(Gas and Petroleum)
In the liquefied petroleum gas (LP gas) business, the Group focused on increasing the customer count amid intensifying
competition, through efforts to attract new customers and prevent service cancellations in established areas, and start
services in new areas. As a result, the number of customers rose by nine thousand from March 31, 2018 to 615 thousand.
Sales of the LP gas business rose 2.9% year on year to 28,262 million yen partly due to a higher unit sales priceaccompanying an increase in raw material prices.
In the city gas business, the number of customers was 55 thousand, unchanged from the level of March 31, 2018, but
sales rose 7.3% year on year to 5,686 million yen on a higher unit sales price stemming from the fuel cost adjustment
regulations among other factors.
As a result, segment sales increased 3.6% year on year to 33,948 million yen. However, the segment posted an operating
loss of 52 million yen (versus operating profit of 393 million yen in the six months ended September 30, 2017) on lower LP
gas sales volume due to higher temperatures.

(Building and Real Estate)
In the Building and Real Estate business, renovation and building construction projects increased. As a result, segment
sales were 8,987 million yen (+7.6% year on year) and operating profit was 223 million yen (+290.0% year on year).

(CATV)In the CATV business, the Group aimed to increase the customer count through enhanced price competitiveness in theform of discounts offered to customers signing up for broadcasting and communications packaged services, and discounts

2TOKAI Holdings Corporation (3167) Financial Results for the Six months Ended September 30, 2018

for smartphone-related packaged services through alliances with major mobile phone carriers, and worked to prevent
service cancellations. The Group also aimed to improve customer satisfaction in the following areas. In broadcasting
services, it broadcasted programs with extensive regional information, and promoted a switch to fiber-optic services that
support 4K broadcasting. In telecommunications services, the Group launched a new ultra-high-speed fiber-optic network
service with a maximum speed of 10Gbps. As a result of such measures, subscribers to the broadcasting service rose by six
thousand from March 31, 2018 to 781 thousand, and those to the telecommunications service increased by eight thousand
to 265 thousand.
The number of subscribers grew steadily in existing areas as well as from M&A activities conducted in the previous fiscal
year, resulting in segment sales of 15,135 million yen (+11.2% year on year) and operating profit of 2,084 million yen(+37.3% year on year).

(Information and Communications Services)
In consumer-oriented services, amid intensifying competition from major mobile carriers, the number of Hikari
Collaboration customers increased by five thousand from March 31, 2018 to 328 thousand. However, the number ofcustomers for conventional internet service providers (ISPs) fell by 25 thousand to 440 thousand. Meanwhile, the numberof customers in the TOKAI-brand MVNO service LIBMO rose by seven thousand to 36 thousand. As a result, segment
sales totaled 15,504 million yen (-1.3% year on year).
In corporate services, growth of recurring-revenue operations and an increase in contracted system development
projects led to a 4.9% year-on-year increase in sales to 9,649 million yen.
Due to these factors, segment sales came to 25,154 million yen (+1.0% year on year), and operating profit was 1,006
million yen (+11.0% year on year).

(Aqua)In the Aqua business, the Group continued to push forward with customer acquisition activities for “The gift of delicious
water: Ulunom” brand, mainly targeting large-scale commercial facilities. Consequently, the Group succeeded in increasing
the number of customers to 156 thousand, up by nine thousand from March 31, 2018.
As a result, segment sales came to 3,490 million yen (+14.2% year on year) and operating profit to 159 million yen(+1,184.9% year on year).

(Others)
In the nursing care business, an increase in the number of users led to sales of 532 million yen (+5.2% year on year). In
the shipbuilding business, sales were down 8.6% year on year to 627 million yen on a decrease in work volume for ship
repairs. In the bridal events business, sales were down 7.1% year on year to 624 million yen on a decline in the number of
wedding ceremonies.
Due to these factors, the segment posted sales of 2,123 million yen (-4.1% year on year) and an operating loss of 10
million yen (versus operating profit of 18 million yen in the six months ended September 30, 2017).

(2) Explanation of Consolidated Financial Condition
1) Assets, Liabilities, and Net Assets
As of September 30, 2018, total assets amounted to 164,920 million yen, down 1,073 million yen from March 31, 2018.
The decline was primarily attributed to a 2,403 million yen decrease in notes and accounts receivable–trade owing toseasonal factors, offsetting a 729 million yen increase in current assets–other stemming from an increase in derivative
valuation assets.
Total liabilities were 102,493 million yen, down 2,049 million yen from March 31, 2018. The decline was mainly attributable
to a 2,295 million yen fall in notes and accounts payable–trade due to seasonal factors and a 3,271 million yen drop in
current liabilities–other from making capex-related payments, offsetting an increase of 3,884 million yen in short-term loans
payable due to income tax payments and an increase in working capital owing to seasonal factors.
Net assets totaled 62,426 million yen, up 976 million yen from March 31, 2018. The increase was attributable to booking

3TOKAI Holdings Corporation (3167) Financial Results for the Six months Ended September 30, 2018

1,736 million yen in quarterly net income attributable to owners of the parent and an increase of 1,106 million yen in deferredgains on hedges, compensating for the 1,839 million yen decline resulting from dividend payments.

2) Cash Flows
Cash and cash equivalents (hereinafter referred to as “funds”) at September 30, 2018 totaled 3,294 million yen, up 289
million yen from March 31, 2018.
Cash flows from each activity during the six months under review and the factors behind them are as follows.

(Cash flows from operating activities)
Net cash provided by operating activities was 7,193 million yen (down 694 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 investing activities)
Net cash used in investing activities was 6,964 million yen (down 33 million yen year on year). This was mainly due to theacquisition of property, plant and equipment and intangible assets.

(Cash flows from financing activities)
Net cash provided by financing activities was 58 million yen (up 1,485 million yen year on year) as funds procured fromshort-term loans payable offset repayment of lease obligations and payment of dividends.

(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information
Earnings results for the six months ended September 30, 2018 were generally in line with forecasts, and the Group
maintains its consolidated earnings forecasts for the fiscal year ending March 31, 2019, which was announced on May 8,
2018.
Forecasts are judgments based on currently available information. Actual performance may differ from forecasts due to avariety of factors going forward.

4

TOKAI Holdings Corporation (3167) Financial Results for the Six months Ended September 30, 2018

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets
Fiscal Year Ended
March 31, 2018
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable–trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Total assets

5(Millions of yen)
Six Months Ended
September 30, 2018

3,143
23,806
3,723
849
817
7,990
-379
39,951

3,435
21,402
4,004
975
784
8,720
-341
38,98034,28023,096
22,842
16,591
96,81033,61523,033
22,911
16,74296,3025,430
5,767
11,1985,443
5,807
11,2502,650
15,898-518
18,030126,038
3
165,993

2,686
16,209-512
18,383125,9363
164,920

TOKAI Holdings Corporation (3167) Financial Results for the Six months Ended September 30, 2018

Fiscal Year Ended
March 31, 2018
Liabilities
Current liabilities
Notes and accounts payable–trade
Short-term loans payable
Current portion of bonds
Income taxes payable
Accruals
Other
Total current liabilities
Non-current liabilities
Bonds payable
Convertible bonds with stock acquisition rights
Long-term loans payable
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
Remeasurement of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

6(Millions of yen)
Six Months Ended
September 30, 2018

15,67023,672
198
2,966
1,657
19,54063,705

13,37427,557
188
1,582
1,750
16,26860,722398
26,711
132
575
13,02040,837
104,543304
26,881
167
694
13,724
41,771
102,493

14,00025,525
17,768-2,22355,06914,00025,527
17,666-2,222
54,970

2,548
－
-3
2,706
5,250
1,130
61,450165,993

2,569
1,106
-9
2,597
6,264
1,191
62,426
164,920

TOKAI Holdings Corporation (3167) Financial Results for the Six months Ended September 30, 2018

(2) Quarterly Consolidated Statements of Income, Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Six Months Ended September 30, 2017)

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

7

Six Months Ended
September 30, 2017
(April 1, 2017 to
September 30, 2017)84,91150,43634,47431,3603,114(Millions of yen)
Six Months Ended
September 30, 2018
(April 1, 2018 toSeptember 30, 2018)
88,84053,75935,081
31,605
3,475

5
113
43
148
310

4
110
45
185
345

227
53
281
3,143

188
50
239
3,580

1
24
25

0
66
5
0
72

0
442
15
15
105
578
2,590
1,131
162
1,294
1,295
49
1,246

0
317
14
－
－
36
367
3,285
1,333
146
1,480
1,804
67
1,736

TOKAI Holdings Corporation (3167) Financial Results for the Six months Ended September 30, 2018

(Consolidated Statements of Comprehensive Income)(Six Months Ended September 30, 2018)

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

8

Six Months Ended
September 30, 2017
(April 1, 2017 to
September 30, 2017)
1,295(Millions of yen)
Six Months Ended
September 30, 2018
(April 1, 2018 toSeptember 30, 2018)
1,804

427
126
(1)
(93)

21
1,106
3
△108

23

△7

615
1,911

1,015
2,819

1,861

2,750

49

69

TOKAI Holdings Corporation (3167) Financial Results for the Six months Ended September 30, 2018(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)
Six Months Ended Six Months Ended
September 30, 2017 September 30, 2018
(April 1, 2017 to(April 1, 2018 toSeptember 30,
September 30,
2017)
2018)
Cash flows from operating activities
Quarterly net income before income taxes
Depreciation
Amortization of goodwill
Impairment loss
Increase (decrease) in net defined benefit asset and liability
Interest and dividend income
Loss (gain) on sales of investment securities
Interest expenses(Gain) loss on sales of non-current assets(Gain) loss on valuation of investment securities
Loss on retirement of non-current assets(Gain) loss on step acquisitions
Decrease (increase) in notes and accounts receivable – trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable – trade
Increase (decrease) in deposits received
Other
Subtotal
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Interest and dividend income received
Purchase of securities
Proceeds from sales of securities
Purchase of tangible and intangible assets
Proceeds from sales of tangible and intangible assets
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Payments of loans receivableCollection of loans receivable
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Interest expenses paid
Net increase (decrease) in short-term loans payable
Repayments of lease obligations
Proceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds
Proceeds from share issuance to non-controlling shareholders
Payments for acquisition of treasury stock
Proceeds from disposal of treasury shares
Cash dividends paid
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

9

2,590
7,155
594
15
(153)
(118)
227
(0)
15
442
105
3,953
(204)
(1,719)(729)(464)
11,610(3,721)
7,888

3,285
6,832
584
14
(132)
(114)
(0)
188
(0)
－
317
－
2,459
(370)
(2,304)
(943)
(939)
8,876
(1,683)
7,193

153
(6)
(5,998)
109

139
(306)
0
(6,743)122(1,175)

(202)

22
(35)
(6,931)

(200)
10
215
(6,964)

(235)
2,775
(1,552)
6,001(5,867)
(404)
20
(0)
0
(2,158)(5)(1,427)
(2)
(472)
3,111
2,639

(194)
4,450
(1,852)
4,800(5,196)
(104)
－
(0)
0
(1,835)
(7)
58
1
289
3,004
3,294

TOKAI Holdings Corporation (3167) Financial Results for the Six months Ended September 30, 2018(4) Notes to the Quarterly Consolidated Financial Statements(Notes to the Premise of Going Concern)
No items to report(Notes to the Significant Changes in Shareholders’ Equity)
No items to report(Additional Information)(Application of the Partial Amendments to Accounting Standard for Tax Effect Accounting)
The company has applied the Partial Amendments to Accounting Standard for Tax Effect Accounting(Accounting Standards Board of Japan [ASBJ] Statement No. 28, issued on February 16, 2018) fromthe beginning of the first quarter of the fiscal year ending March 31, 2018. Accordingly, the company
presents deferred tax assets under investments and other assets and deferred tax liabilities under
non-current liabilities.
(Board Benefit Trust [BBT])(1) Overview of Transactions
At a Board of Directors meeting held on May 10, 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 coveredby 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 the 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 the treasury stock was 259 million yen as ofMarch 31, 2018 and 255 million yen as of September 30, 2018. Treasury stock totaled 416,600 shares as ofMarch 31, 2018 and 410,800 shares as of September 30, 2018.

10

TOKAI Holdings Corporation (3167) Financial Results for the Six months Ended September 30, 2018

(Segment Information)[Segment Information]
I. Six Months Ended September 30, 2017 (April 1, 2017 to September 30, 2017)
Sales and Income or Losses by Reportable Segment(Millions of yen)
Reportable segments
Building
Gas andand Real
Petroleum
EstateCATV

Information
andCommunications

Aqua

Subtotal

Others1

Total

Adjust2ments

Amount inconsolidated
statements
3of income

Sales
Sales to externalcustomers

32,777

8,349

13,607

24,906

3,055

82,6972,214

84,911—

84,911

Intersegment sales
and transfer

101

625

390

1,489

75

2,684

88

2,772

(2,772)—

Subtotal

32,8798,975

13,99826,3963,131

85,381

2,303

87,684(2,772)

84,911

Segment income(loss)

393

57

1,517

906

12

2,887

18

2,905

208

3,114

(Note) 1. The “Others” 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 ofincome.

II. Six Months Ended September 30, 2018 (April 1, 2018 to September 30, 2018)
Sales and Income or Losses by Reportable Segment(Millions of yen)
Reportable segments
Building
Gas andand Real
Petroleum
EstateCATV

Information
andCommunications

Aqua

Subtotal

Others1

Total

Adjust2ments

Amount inconsolidated
statements
3of income

Sales
Sales to externalcustomers

33,948

8,987

15,13525,154

3,490

86,716

2,123

88,840—88,840

96

554

370

1,503

90

2,615

81

2,697

(2,697)—

Subtotal

34,045

9,542

15,506

26,6573,580

89,332

2,204

91,537(2,697)

88,840

Segment income(loss)

(52)

223

2,084

1,006

159

3,422

(10)

3,411

63

3,475

Intersegment sales
and transfer(Note) 1. The “Others” 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 ofincome.

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