Consolidated Financial Results for theYear ended March 31, 2021 [Japanese GAAP]May 11, 2021
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 25, 2021
Scheduled start date of dividend payment:
June 28, 2021
Scheduled date to submit Securities Report:
June 25, 2021
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, 2021 (April 1, 2020 to March 31, 2021)(1) 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, 2021

196,726

0.4

15,226

7.0

15,312

5.8

8,815

7.0

Year ended March 31, 2020

195,952

2.3

14,2248.9

14,479

9.2

8,241

6.0

(Note) Comprehensive income: 13,748 million yen in the Year ended March 31, 2021 (135.7%)
5,834 million yen in the Year ended March 31, 2020 (-4.8%)
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, 2021

67.32

-

12.7

8.8

7.7

Year ended March 31, 2020

62.93

-

13.0

8.6

7.3

(Reference) Equity in affiliates accounted for under the equity method: -136 million yen for the ended March 31, 2021
85 million yen for the ended March 31, 2020

(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, 2021

178,974

76,05641.6

568.93

Year ended March 31, 2020

169,972

65,98238.0

493.26

Cash and Cash
Equivalents at theEnd of the Year

(Reference) Equity: 74,510 million yen for the Year ended March 31, 2021
64,595 million yen for the Year ended March 31, 2020

(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, 2021

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

5,136

Year ended March 31, 2020

22,535(12,131)(10,375)

4,046

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 ended March 31, 2020

―

14.00

―

14.00

28.00

3,678

44.5

5.8

Year ending March 31, 2021
Year ending March 31, 2022
(Forecast)

―

14.00

―

16.00

30.00

3,940

44.6

5.6

―

15.00

―

15.00

30.00

44.5

3. Consolidated Earnings Forecasts for the Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)(% figures represent year-on-year changes)

Sales

Year ending March
31, 2022

Operating Profit

Recurring Profit

Net Income Attributable Net Income
to Owners of the Parent per Share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

207,000

5.2

15,2400.1

15,320

0.1

8,830

0.2

67.42

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

No4) Restatements:

No(3) Number of shares issued (common stock)
1) Shares issued at the end of each period (including treasury stock):

FY2020139,679,977 shares FY2019

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

FY20208,713,335 shares FY2019

8,722,345 shares

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

FY2020130,963,743 shares FY2019

130,954,838 shares

139,679,977 shares(Note) Board benefit trust shares(BBT) is included in the number of year-end treasury stock. (391,300 stocks at FY3/2021, 400,700 stocks at
FY3/2020)

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

shares (394,416 stocks at FY3/2021, 404,039 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, 2021 (April 1, 2020 to March 31, 2021)(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, 2020

9,373

3.8

4,104

(0.1)

4,127

(0.2)

3,714

(7.8)

Year ended March 31, 2020

9,028

(13.4)

4,106(22.3)

4,119(22.2)

4,026(24.4)Net Income per
Share

Net Income per
Share (Diluted)

Yen

Yen

Year ended March 31, 2021

28.36

-

Year ended March 31, 2020

30.75

-

(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, 2021

99,89640,381

40.4

308.33

Year ended March 31, 2020

97,29040,33941.5

308.03(Reference) Equity: 40.381 million yen for the Year ended March 31, 2020
40.339 million yen for the Year ended March 31, 2020

* 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, 2021

[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(Additional Information) ··································································································· 15(Segment Information)····································································································· 15(Per-Share Information) ··································································································· 19(Important Subsequent Events) ························································································· 19

4. Other ································································································································· 20(1)Changes in Executive Positions····························································································· 20

1TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2021

1. Overview of Operating Results and Financial Position(1) Overview of Operating Results
Consolidated operating results for the fiscal year under review
During the fiscal year ended March 31, 2021, the Japanese economy incurred substantial impact from the COVID-19
pandemic despite the implementation of a variety of support measures. By the end of the fiscal year, infection cases had
spread from urban areas to the rest of Japan and began to include an increasing number of individuals stricken withmore infectious mutated strains of the virus. As a result, future outlook continues to be uncertain.
Under these conditions, we conducted sales activities diligently and carefully during the fiscal year ended March 31,
2021, the final year of our medium-term management plan, Innovation Plan 2020 “JUMP.” While performing these
activities, we prioritized COVID-19 countermeasures, safety and security for customers and employees, and infection
prevention protocols. In tandem with these efforts, we established new points of contact with customers by proactively
adopting indirect sales methods that did not involve in-person meetings, including the use of the Internet to conductbusiness meetings and information transmission. As a result, continuing customers had risen to 3,099,000 as of March
31, 2021, up 95,000 compared to its level on March 31, 2020. Meanwhile, TLC Membership Service members
numbered 979,000, up 83,000.
As a result of these circumstances, the TOKAI Group booked in the fiscal year ended March 31, 2021 sales of
196,726 million yen (+0.4% year on year), operating profit of 15,226 million yen (+7.0% year on year), recurring profit of
15,312 million yen (+5.8% year on year), and net income attributable to owners of the parent of 8,815 million yen (+7.0%
year on year). The growth in results was primarily driven by a steady increase in customer count, and as a result of thisgrowth, sales increased for the fourth consecutive fiscal year while all profit lines increased for the third. The fiscal year
closed out with both sales and profits at record-high levels.
The Group is aiming to expand its earnings base by broadening its business area. During the fiscal year ended
March 31, 2021, we pursued this target by establishing new sales bases for the LP gas business in Kasugai, Aichi
Prefecture and Yokkaichi, Mie Prefecture in June 2020. Through our Construction, Equipment, and Real Estate segment,
we acquired shares in Chuo Denki Koji Co., Ltd., an electrical construction company in Nagoya, Aichi Prefecture, andconverted it into a consolidated subsidiary in August 2020. Later, in November of the same year, we added anotherconsolidated subsidiary by acquiring shares in building maintenance business operator Inoue Technica Co., Ltd., which
is located in Numazu, Shizuoka Prefecture. Moving forward, the Group will expand its operations by branching off into
new areas and broadening its business domains. In addition to this move, we converted MIEN TRUNG GAS JOINTSTOCK COMPANY and V-GAS PETROLEUM CORPORATION, two companies located in the Socialist Republic ofVietnam, into equity-method affiliates and successfully entered the Vietnamese LP gas market.
Performance by segment is indicated below. Effective from the start of the three months ended June 30, 2020, theCompany updated the names of its reportable segments, changing the “Gas and Petroleum” segment to “Energy” andthe “Building and Real Estate” segment to “Construction, Equipment, and Real Estate.” These changes have no effecton segment results.
(Energy)In the LP gas business, despite restrictions on in-person sales activities, customer count rose by 30,000 during the
fiscal year ended March 31, 2021, reaching 681,000 customers thanks to the application of telemarketing and online
sales activities. Despite a decrease in selling prices linked to a decline in procurement prices, sales amounted to 65,638
million yen (+0.6% year on year), rising due in part to growth in the volume of gas sold to households, which was driven
primarily by demand generated by the tendency of consumers to remain indoors during the COVID-19 pandemic.
In the city gas business, the number of customers was 63,000, up 2,000 from its level as of March 31, 2020.
However, sales fell to 11,741 million yen (-9.1% year on year) due in part to a decline in selling prices associated with thegas rate adjustment system.
As a result, segment sales came to 77,380 million yen (-1.0% year on year), but segment operating profit grew to2

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2021

6,115 million yen (+24.6% year on year), driven primarily by a rise in customer count.
(Construction, Equipment, and Real Estate)
In the Construction, Equipment, and Real Estate segment, sales grew to 23,177 million yen (+3.5% year on year)
thanks to contributions from M&A that offset sales activity delays caused by the COVID-19 pandemic. Despite thisgrowth, operating profit declined to 1,257 million yen (-8.8% year on year) due to a decrease in orders received forconstruction, equipment installation, and other labor.
(CATV)
Through the CATV segment, we endeavored to raise the levels of enjoyment experienced by those forced to remainin their homes due to the COVID-19 pandemic through efforts such as collaboration with major video distributors aimed
at content enhancement. As a community-based service provider, we simultaneously focused on program productionand effectively transmitting information within local areas. In addition, we worked to acquire new customers throughongoing, careful, and steady sales activities that catered to the needs of each local area. As a result, our broadcasting
services customer count rose to 875,000, up 14,000 compared to March 31, 2020, and our communications services
customer count increased to 322,000, up 30,000.
Consequently, segment sales amounted to 33,745 million yen (+7.5% year on year) and segment operating profit
was 4,719 million yen (+3.9% year on year).
(Information and Communications)Through the Information and Communications business for individual consumers, we strove to acquire newcustomers through the Internet while responding to intensified competition with major telecommunications carriers andgrowth in demand for telecommunications services during the COVID-19 pandemic by providing optimal proposals thatmeet customer needs. Among these proposals was the new “Nattoku Plan,” a new price plan for the Company’s MVNO
service, LIBMO. Consequently, our total number of individual customers increased by a net 24,000 compared to March
31, 2020, after declining for the previous six fiscal years, and finished at 785,000 (conventional ISP customers rose by
19,000 to 732,000, and LIBMO customers rose by 5,000 to 53,000). However, sales fell to 26,304 million yen (-8.0%
year on year) due to a decrease in average revenue per user (ARPU).
Through its Information and Communications business for corporate clients, the Group achieved progress in the fieldof cloud services and captured demand associated with teleworking, both factors that led to recurring-revenue businessexpansion. As a result, sales came to 24,430 million yen (+5.5% year on year).
As a result of these factors, segment sales totaled 50,735 million yen (-2.0% year on year) and segment operating
profit was 3,086 million yen (+4.3% year on year).
(Aqua)The number of customers in the Aqua (bottled drinking water delivery) business was 162,000, up 1,000 from thenumber as of March 31, 2020 despite impact from self-imposed operational limitations at shopping malls and othercommercial facilities. At the same time, the number of bottles sold per customer rose as a result of demand fromconsumers who refrained from going outdoors in response to the COVID-19 pandemic.
As a result, segment sales grew to 7,622 million yen (+2.8% year on year), but segment operating profit fell to 259
million yen (-35.4% year on year) due primarily to a rise in logistical costs.
(Others)
Turning to other businesses, sales in the nursing care business totaled 1,314 million yen (+5.8% year on year)
thanks to contributions from Tender Co., Ltd. (Gero, Gifu Prefecture), which became a consolidated subsidiary during theprevious fiscal year. In the shipbuilding business, sales amounted to 1,506 million yen (+1.7% year on year), reflecting
an increase in the volume of ship repair labor provided. Sales in the bridal events business declined to 417 million yen (69.3% year on year) due to wedding ceremony postponements and the application of self-restraint associated with the

3

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2021

holding of banquets in response to the COVID-19 pandemic.
As a result, segment sales were 4,065 million yen (-16.3% year on year) and segment operating loss was 244 million
yen (versus operating profit of 235 million yen in the fiscal year ended March 31, 2020).

(2) Overview of Financial Position
As of March 31, 2021, total assets amounted to 178,974 million yen, up 9,001 million yen from March 31, 2020. This
growth was primarily due to an increase of 3,860 million yen in investment securities (under “investments and otherassets”) caused mainly by the purchase of shares of affiliates; a rise of 3,447 million yen in property, plant andequipment; and growth of 1,237 million yen in the “other” account (under “current assets”) resulting mainly from anincrease in assets associated with derivative valuations.
Total liabilities stood at 102,917 million yen, down 1,071 million yen from March 31, 2020. Liabilities declined due
primarily to a decrease of 7,860 million yen in short-term loans payable resulting from the repayment of interest-bearing
debt and a downturn of 1,161 million yen in provisions for loss on litigation stemming from the resolution of litigious
proceedings. These factors offset upward impact from an increase of 2,192 million yen in notes and accounts payable–
trade; growth of 1,833 million yen in long-term loans payable; and a rise of 2,407 million yen in the “other” account(under “current liabilities”) stemming mainly from an uptick in guarantee deposits for hedge transactions.
Net assets came to 76,056 million yen, up 10,073 million yen from March 31, 2020. This increase was due primarily
to the booking of 8,815 million yen in net income attributable to owners of the parent and growth of 2,802 million yen indeferred gains on hedges. These factors offset downward impact of 3,678 million yen from the issue of dividends.

(3) Overview of Cash Flows
As of March 31, 2021, cash and cash equivalents stood at 5,136 million yen, up 1,089 million yen from March 31,
2020.
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 32,223 million yen (up 9,688 million yen year on year). This increase
was primarily attributable to growth in net income before income taxes; a rise in notes and accounts payable–trade;guarantee deposits received for hedge transactions; and depreciation (a non-cash item). These factors compensated for
downward impact from income taxes paid and other determinants.
The substantial year-on-year growth in net cash provided by operating activities was primarily due to the increase in
net income before income taxes, the rise in notes and accounts payable–trade, and guarantee deposits received forhedge transactions.
(Cash flows from investing activities)
Net cash used in investing activities was 17,068 million yen (up 4,936 million yen year on year). The primary uses ofcash were the purchase of tangible and intangible assets, the purchase of shares of subsidiaries and associates,
payments for the acquisition of businesses, and the purchase of shares of subsidiaries resulting in changes in the
Company’s scope of consolidation.
The substantial year-on-year increase in net cash used in investing activities was mainly the result of the purchase ofshares of subsidiaries and associates, payments for the acquisition of businesses, and the purchase of tangible andintangible assets.
(Cash flows from financing activities)
Net cash used in financing activities was 14,064 million yen (up 3,689 million yen year on year). Primary contributing
factors were repayments of loans payable and lease obligations and dividend payments that exceeded proceeds fromlong-term loans payable.

4

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2021

Below is a summary of major cash flow indicators.
Year ended
Year ended
Year ended
March 31, 2017 March 31, 2018 March 31, 2019
Equity ratio (%)
Equity ratio on amarket-value basis (%)
Ratio of interest-bearing
debt to cash flow(times)Interest coverage ratio(times)Year ended
Year ended
March 31, 2020 March 31, 2021

34.5

36.3

37.4

38.0

41.6

67.4

85.0

71.8

72.2

70.0

2.0

2.4

2.3

2.1

1.3

48.9

46.6

58.2

72.3

108.2

(Notes) Equity ratio:
Equity ratio on a market-value basis:

Shareholders’ equity/Total assets
Total value of shares at market price/Total assets

Ratio of interest-bearing debt to cash flow:
Interest coverage ratio:

Interest-bearing debt/Cash flow from operating activities

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 yearend (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 basedon the interest expenses paid shown in the consolidated statements of cash flows.

(4) Future Outlook
The Group has formulated a new four-year medium-term management plan entitled “IP24 (Innovation Plan 2024)—
Design the Future Life,” which will extend from the fiscal year ending March 31, 2022 (FY2021) through the fiscal year
ending March 31, 2025 (FY2024).
“IP24” includes the following five key objectives: LNG strategy (business area expansion); development of the totallife concierge (TLC) concept; further strengthening and expansion of customer bases through full-scale digitaltransformation strategies; optimal allocation of management resources; and the enhancement of SDG-related initiatives.
The Group will address these five objectives throughout the duration of the plan.
In FY2021, we expect to achieve an increase in sales through ongoing growth in customer count and orders received
but anticipate that profit will remain level year on year due to the inclusion of costs associated with efforts such as
customer acquisition and environmental adjustments aimed at achieving workstyle reforms.
Based on the above factors, our consolidated earnings forecast for FY2021 is as follows.
Consolidated earnings forecast for FY2021
Sales

207,000 million yen (+5.2% year on year)

Operating profit

15,240 million yen (+0.1% year on year)

Recurring profit

15,320 million yen (+0.1% year on year)

Net income attributable to owners of the parent

8,830 million yen (+0.2% 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, aswell as a dividend payout ratio of 40–50%.
For the fiscal year ended March 31, 2021, we forecast annual dividends of 30 yen per share, consisting of thealready-issued interim dividend of 14 yen per share and a year-end dividend of 16 yen per share. We also project annual
dividends of 30 yen per share in the fiscal year ending March 31, 2022.

5

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2021

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 withJapanese Generally Accepted Accounting Principles (J-GAAP) for the foreseeable future. However, we will consider the
adoption of International Financial Reporting Standards (IFRS), taking into account various situations in Japan andoverseas.

6

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2021

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

As of March 31, 2020

As of March 31, 2021

Cash and deposits

4,629

5,577

Notes and accounts receivable–trade25,85926,323Merchandise and finished goods

3,679

3,479

Work in process

944

900

Raw materials and supplies

930

1,194

Other

8,623

9,860

Allowance for doubtful accounts

(399)

△403

44,26846,932

AssetsCurrent assets

Total current assets
Non-current assets
Property, plant and equipment

127,784

131,474

Accumulated depreciation(93,528)(96,966)

Buildings and structures, net

34,25634,508

Buildings and structures

101,487

105,403

Accumulated depreciation(77,714)(80,788)

Buildings and structures, net

23,773

24,614Land

23,06824,054

Leased assets

24,241

24,559

Accumulated depreciation(11,536)(11,155)

Leased assets, net

12,704

13,403357

660

15,48916,494(11,297)(11,936)

4,192

4,558

98,353

101,800

5,125

5,258

671

727

Other

5,034

4,700

Total intangible assets

10,831

10,687

6,347

10,207

74

57

Deferred tax assets

3,786

1,712

Net defined benefit asset

1,601

3,150

Other

5,085

4,698

Allowance for doubtful accounts

(377)

(273)

Total investments and other assets

16,51819,552

125,703

132,0411

0

169,972

178,974

Machinery, equipment and vehicles

Construction in progress
Other, net
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Leased assets

Investments and other assets
Investment securities
Long-term loans receivable

Total non-current assets
Deferred assets
Total assets

7

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2021

(Millions of yen)
As of March 31, 2020

As of March 31, 2021

Liabilities
Current liabilities
Notes and accounts payable–trade

15,034

17,226

Short-term loans payable

19,921

12,061

Current portion of bonds

118

112

lease obligations

3,792

3,934

Income taxes payable

2,244

2,764

Provision for bonuses

1,358

1,382

Provision for loss on litigation

1,161

－

424

558

Other

16,562

18,969Total current liabilities

60,61757,009Other accruals

Non-current liabilities

112－

28,121

29,955

10,758

11,349Other accruals

238

276

Net defined benefit liability

876

962

Other

3,265

3,363

Total non-current liabilities

43,37245,908103,989

102,917

Capital stock

14,00014,000Capital surplus

25,54225,542

Bonds payable
Long-term loans payable
Lease obligations

Total liabilities
Net assets
Shareholders’ equity

Retained earnings

26,426

31,563

Treasury stock(2,221)(2,219)Total shareholders’ equity

63,746

68,887

Valuation difference on available-for-sale securities

290

1,216

Deferred gains (losses) on hedges

(883)

1,918

Foreign currency translation adjustment

(7)

33

Remeasurements of defined benefit plans

1,449

2,454

848

5,623

Non-controlling interests

1,387

1,545

Total net assets

65,982

76,056

169,972

178,974

Accumulated other comprehensive income

Total accumulated other comprehensive income

Total liabilities and net assets

8

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2021

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021

Sales

195,952

196,726

Cost of sales

116,662

113,856

Gross profit

79,28982,870

Selling, general and administrative expenses

65,06567,643Operating profit

14,224

15,226

Interest income

1110

Dividend income

194

184

Commission income

3630

Subsidy income

14

113

Share of profit of entities accounted for using equity method

85

－

Other

309

261

Total non-operating profit

652

601

301

289

Share of loss of entities accounted for using equity method

－

136

Other

95

88

Total non-operating expenses

397

515

14,47915,312Gain on sales of non-current assets

16

57

Gain on receipt of donated non-current assets

182

386

Transmission line facility subsidies

162

144

－

66

Gain on sales of investment securities

315

18

Total extraordinary income

677

672

Non-operating profit

Non-operating expenses
Interest expenses

Recurring profit
Extraordinary income

Subsidy income

Extraordinary losses

30

Loss on retirement of non-current assets

819

814

Impairment loss

118

106

Loss on sales of investment securities

17

16

Loss on valuation of investment securities

39

353

Other

1,227

122

Total extraordinary losses

2,225

1,414

Net income before income taxes

12,93014,570

Income taxes (current)

5,142

5,247

Income taxes (deferred)

(658)

350

Total income taxes

4,484

5,597

Net income

8,445

8,973

204

157

8,241

8,815

Loss on sales of non-current assets

Net income attributable to non-controlling interests
Net income attributable to owners of the parent

9TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2021

(Consolidated Statements of Comprehensive Income)(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021

8,445

Net income

8,973

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 for using
the equity method
Total other comprehensive income
Comprehensive income(1,283)

925

(563)

2,802

1

(0)

(768)

1,005

2

40

(2,611)

4,775

5,834

13,748

5,629

13,590204

157(Breakdown)Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

10

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2021

(3) Statement of Changes in Consolidated Shareholders’ Equity
Year ended March 31, 2020 (April 1, 2019–March 31, 2020)(Millions of yen)
Shareholders’ equity
Capital stock

Capital surplus

14,000

Balance at beginning of period

25,527Retainedearnings

Total shareholders’

Treasury stock

21,863equity59,167△2,222

Change during the year
Dividends of surplus(3,678)(3,678)Net income attributable to owners of the parent

8,241

8,241

Acquisition of treasury shares
3

Disposition of treasury shares

(1)

(1)

2

6

Increase (decrease) in cash resulting from merger ofconsolidated subsidiaries

11

Purchase of shares of consolidated subsidiaries

11

Net changes of items other than shareholders' equity
Total change during the year
Balance at end of period

－

15

4,563

1

4,579

14,00025,542

26,426(2,221)

63,746

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-for-salesecurities

Deferred
gains orlosses onhedges

1,573

(319)

Foreign
Remeasurements Total accumulated Non-controllingcurrencyinterestsof defined benefit other comprehensive
translation
plans
incomeadjustment
(10)

2,217

3,460

1,267

Total net
assets63,894

Change during the year
Dividends of surplus(3,678)Net income attributable toowners of the parent

8,241

Acquisition of treasury
shares(1)

Disposition of treasury
shares6

Increase (decrease) incash resulting frommerger of consolidated
subsidiaries-

Purchase of shares of
consolidated subsidiaries

11

Net changes of items
other than shareholders'equity(1,283)

(563)

3

(768)

(2,611)119(2,491)

Total change during the year

(1,283)

(563)

3

(768)

(2,611)

119

2,088

290

(883)

(7)

1,449

848

1,387

65,982

Balance at end of period

11

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2021

Year ended March 31, 2021 (April 1, 2020–March 31, 2021)(Millions of yen)
Shareholders’ equity
Capital stock

Capital surplus

14,000

Balance at beginning of period

25,542Retainedearnings

Total shareholders’

Treasury stock

26,426equity(2,221)

63,746

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)
－

Purchase of shares of consolidated subsidiaries
Net changes of items other than shareholders' equity
Total change during the year
Balance at end of period

－

0

5,137

1

5,140

14,00025,542

31,563(2,219)68,887

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-for-salesecurities

Deferred
gains orlosses onhedges290(883)

Foreign
Remeasurements Total accumulated Non-controllingcurrencyinterestsof defined benefit other comprehensive
translation
incomeplans
adjustment
(7)

1,449

848

1,387

Total net
assets

65,982

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)

Purchase of shares of
consolidated subsidiaries－

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

12

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2021

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021

Cash flows from operating activities
Net income before income taxes and minority interests

12,93014,570Depreciation

14,337

14,657

Amortization of goodwill

1,089

1,143

118

106

Increase (decrease) in provision for loss on litigation

1,161(1,161)

Increase in net defined benefit asset and liability

(255)

(30)

Interest and dividend income

(206)

(194)

(Gain) loss on sale of investment securities

(297)

(1)

Interest expenses

301

289

(Gain) loss on sales of non-current assets

(12)

(56)

Loss (gain) on valuation of investment securities

39

353

Loss on retirement of non-current assets

819

814

Increase (decrease) in notes and accounts payable

(978)

286

(Increase) decrease in inventories

650

17

(1,108)

1,638

Increase (decrease) in notes and accounts payable–trade

(459)

2,104

Increase (decrease) in accounts payable–other

198

688

Impairment loss

Decrease (increase) in guarantee deposits

Increase (decrease) in accrued consumption taxes

438

(186)

Increase (decrease) in deposits received

(214)

2,127

Other

(668)

(206)

Subtotal

27,88436,960

Income taxes paid

(5,348)(4,736)

Net cash provided by operating activities

22,53532,223

258

245

633

339

Purchase of securities

(13)

(15)

Proceeds from sales of securities

652

214

(11,592)(12,925)

Proceeds from sales of tangible and intangible assets

334

366

Payments for retirement of non-current assets

(176)

(153)

Proceeds from contribution received for construction

333

359

(1,968)(1,085)(373)(3,021)(189)(1,630)

Collection of loans receivable

64

249

Other

(95)

(11)

(12,131)(17,068)

Cash flows from investing activities
Interest and dividend income received

Purchase of tangible and intangible assets

Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Payments for transfer of businessNet cash provided by (used in) in investing activities

13

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2021

(Millions of yen)
Fiscal Year Ended

Fiscal Year Ended

March 31, 2020

March 31, 2021

Cash flows from financing activities

(311)

(297)

Net increase (decrease) in short-term loans payable(2,788)(8,475)

Repayments of lease obligations(3,551)(3,935)

Proceeds from long-term loans payable

9,500

12,436

Repayment of long-term loans payable(9,290)(9,987)

(168)

(118

Payments for acquisition of treasury stock

(1)

(0)

Proceeds from disposal of treasury shares

0－(3,678)(3,678Dividends paid to non-controlling interests

(8)

(7)

Other

(78)

－

(10,375)(14,064)

Effect of exchange rate change on cash and cash equivalents

(1)

(0)

Net increase (decrease) in cash and cash equivalents

27

1,089

Cash and cash equivalents at beginning of period

4,018

4,046

Cash and cash equivalents at end of period

4,046

5,136

Interest expenses paid

Redemption of bonds

Cash dividends paid

Net cash provided by (used in) financing activities

14

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2021

(5) Notes to the Consolidated Financial Statements(Notes on Premise of Going Concern)
There is no relevant information.

(Additional Information)(Resolution of Important Litigation)
Dissatisfied with the appellate ruling issued on January 16, 2020 by the Tokyo High Court in the damage suit filed against
Hitachi Solutions, Ltd. and the subsequent damage counterclaim filed by Hitachi Solutions, Ltd., consolidated subsidiary
TOKAI Communications Corporation petitioned the Supreme Court for acceptance of a final appeal, but received a rejectionof this appeal on October 20, 2020. As a result of this decision, the Tokyo High Court’s prior ruling, which required TOKAI
Communications Corporation to pay 766 million yen in compensation for damages, as well as late payment charges, toHitachi Solutions, Ltd., will stand as previously delivered.
During the fiscal year ended March 31, 2020, the Company recorded 1,161 million yen in provision for loss on litigation as
an extraordinary loss in preparation for the possibility that the Supreme Court would uphold the January 16, 2020 ruling of
the Tokyo High Court. In response to this final appeal rejection, the Company has recorded 26 million yen in extraordinary
loss for the fiscal year ended March 31, 2021.

(Segment Information)
Segment Information
1. Overview of Reportable Segments
The Group’s reportable segments are constituent units of the Group for which discrete financial information can beobtained, 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
the Group’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 and equipment; and provides security services.
In the Construction, Equipment, and Real Estate segment, the Group constructs residential facilities and otherbuildings; develops, sells, and leases real estate; sells construction materials and residential equipment; installs prefurnished equipment and appliances in buildings; and operates home renovation, civil engineering, and electricalconstruction 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.
Effective from the start of the three months ended June 30, 2020, the Company updated the names of its
reportable segments, changing the “Gas and Petroleum” segment to “Energy” and the “Building and Real Estate”
segment to “Construction, Equipment, and Real Estate.” These changes have no effect on segment results.
The updated segment names have also been applied retroactively to results for the fiscal year ended March 31,
2020.

15

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2021

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 the Basis of Preparing the Consolidated Financial Statements.”
Profit for reportable segments is based on operating profit, and intra-segment sales and transfers are conducted at
prevailing market prices.

3. Information Related to Sales, Profit and Losses, Assets, Liabilities, and Other Items for Each Reportable Segment
For the fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)(Millions of yen)
Reportable segments

Sales
Sales to externalcustomers
Intra-segment sales
and transfer
Total
Segment profit (loss)
Segment assets
Other items
Depreciation
Amortization of goodwill
Increase in tangible andintangible assets

Construction,
InformaEquiption andEnergyCATV
ment,
Commuand Realnications
EstateAqua

78,154

22,38331,38551,7537,416 191,094

171

1,019

665

3,805

78,326
4,907
62,286

23,403
1,379
26,35432,0504,543
37,52355,5592,959
31,329

4,420
402

691
24

5,091
617

3,038
20

610
—

5,219

422

6,759

2,469

513

Others
Total

Note 1

Total

Amount in
Adjustments consolidated
Note 2statements ofincome Note 3

4,858

195,952—

195,952

5,855

166

6,021

(6,021)—

7,609 196,949
401 14,191
4,984 162,477

5,024
235
4,832

201,973
14,426167,309(6,021)
(201)
2,663

195,952
14,224
169,972

13,851
1,065

100
24

13,952
1,089

384
—

14,337
1,089

15,383215

15,599224

15,824193(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, insurance, and nursing care.
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 to companywide
assets, depreciation, and increase in tangible and intangible assets that are not allocated to individual reportablesegments.
3. Segment profit (loss) is adjusted to match operating profit in the consolidated statements of income.

16

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2021

For the fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021)(Millions of yen)
Reportable segments

Sales
Sales to externalcustomers
Intra-segment sales
and transfer
Total
Segment profit (loss)
Segment assets
Other items
Depreciation
Amortization of goodwill
Increase in tangible andintangible assets

Construction,
Information andEquipEnergy
CATV
Commument,
and Real
nications
EstateAqua

77,3807,622 192,661

23,17733,74550,735

Others

194

1,035

600

3,835

77,574
6,115
68,04624,212
1,257
27,72734,346
4,719
38,571

54,5703,086
31,068

189

4,241
417

713
65

5,340
595

3,245
23

640
—

7,138

828

7,481

3,080

467

Total

Note 1

4,065

Total

Amount in
Adjustments consolidated
Note 2statements ofincome Note 3

196,726—

196,726

5,855

131

5,986

(5,986)—

7,811 198,516
259 15,438
4,801 170,215

4,196
(244)
4,944

202,713
15,194
175,160(5,986)
32
3,813

196,726
15,226
178,974

14,182
1,101

77
41

14,260
1,143

397
—

14,657
1,143

18,996163

19,159408

19,567(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, insurance, and nursing care.
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 to companywide
assets, depreciation, and increase in tangible and intangible assets that are not allocated to individual reportablesegments.
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, 2020 (April 1, 2019 to March 31, 2020)
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, plant and 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.

17

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2021

For the fiscal year ended March 31, 2021 (April 1, 2020 to 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, plant and 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, 2020 (April 1, 2019 to March 31, 2020)(Millions of yen)
Construction,
Equipment,
Energyand Real
Estate——Impairment losses

Information
andCATV
Communications
—
—

Aqua

Corporate or
elimination

Others
—

118

Total

—

118

For the fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021)(Millions of yen)
Construction,
Equipment,
Energyand Real
Estate—79

Impairment losses

Information
andCATV
Communications
—
—

Aqua

Corporate or
elimination

Others
—

26

Total

—

106

Information Related to Amortization of Goodwill and Unamortized Balance by Reportable
Segment
For the fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)(Millions of yen)
EnergyAmortization forthe year ended
March 31, 2020
Balance as ofMarch 31, 2020

Construction,
Equipment,
and Real
EstateCATV

Information
andCommunications

Aqua

Corporate or
elimination

Others

Total

402

24

617

20

—

24

—

1,089

1,072

148

3,581

204

—

118

—

5,125

18

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2021

For the fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021)(Millions of yen)
EnergyAmortization forthe year ended
March 31, 2021
Balance as ofMarch 31, 2021

Construction,
Equipment,
and Real
EstateCATV

Information
andCommunications

Aqua

Corporate or
elimination

Others

Total

417

65

595

23

—

41

—

1,143

1,222

684

2,986

181

—

183

—

5,258

Information on Negative Goodwill Generated for Each Reportable Segment
For the fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)
This information is omitted due to low material importance.
For the fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021)
There is no relevant information.

(Per-Share Information)
Year ended March 31, 2020

Year ended March 31, 2021

(April 1, 2019 to March 31, 2020)(April 1, 2020 to March 31, 2021)

Net assets per share (yen)493.26568.93

Basic earnings per share (yen)

62.93

67.32

(Notes) 1. No data for diluted earnings per share is provided, since no dilutive shares exist.
2. The standards used to calculate basic earnings per share are as follows.
Year ended March 31, 2020 Year ended March 31, 2021
(April 1, 2019 to(April 1, 2020 toMarch 31, 2020)

March 31, 2021)

Net income attributable to owners of the parent (millions of yen)

8,241

8,815

Amounts not attributable to common shareholders (millions of yen)

—

—

8,241

8,815

130,954

130,963

Net income attributable to owners of the parent available to commonshareholders (millions of yen)
Average number of common shares outstanding during the period(thousands of shares)

3. The number of common shares outstanding at the end of the fiscal year used in the calculation of net assets per shareexcludes the Company’s shares held by Custody Bank of Japan, Ltd. (Trust Account E) (400,700 shares for the fiscal year
ended March 31, 2020; 391,300 shares for the fiscal year ended March 31, 2021). 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 ofJapan, Ltd. (Trust Account E) (404,039 shares for the fiscal year ended March 31, 2020; 394,416 shares for the fiscal year
ended March 31, 2021).

(Important Subsequent Events)
There is no relevant information.

19

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2021

4. Other(1) Changes in Executive Positions
1) Change of representative director (Scheduled for June 25, 2021)
1. Candidate for new representative director
Representative Director and Managing

Junichi Yamada(Managing Executive Officer)

Toshinori Nakamura(Director and Managing Executive Officer)

Executive Officer
Representative Director and Managing
Executive Officer

2. Representative director scheduled to retire
Representative Director and Vice

Takanori Mamuro

President

2) Other Changes in Executive Positions (Scheduled for June 25, 2021)

1. Candidate for new director
Director

Nobuko Kawashima* Nobuko Kawashima is a candidate for outside director.

2. Director scheduled to retire
Director

Hidetsugu Mizoguchi

Director

Shoji Uematsu

20(Scheduled to become our advisor)