Consolidated Financial Results for the First Nine Months of the
Fiscal Year Ending March 31, 2016 [Japanese GAAP]
January 29, 2016
Company name:TOKAI Holdings Corporation

Stock listing:Tokyo Stock Exchange

Stock code:

3167

URL:

http://tokaiholdings.co.jp

Representative:

Katsukiho Tokita, President & CEO

Contact:

Hiroyuki Ozawa, Managing Executive Officer, General Manager of Administrative Headquarters
Telephone: +81-54-275-0007

Scheduled date of filing quarterly report:

February 12, 2016

Scheduled date of dividend payment:—

Supplementary materials on quarterly financial results:

Yes

Quarterly financial results briefing:No(Figures are rounded to the nearest million yen)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2015
(April 1, 2015 to December 31, 2015)(1) Consolidated Operating Results (cumulative)(% figures represent year-on-year changes)

Sales

Millions of yen

Operating Profit%

Millions of yen

Quarterly Net
IncomeAttributable to
Owners of the
ParentRecurring Profit%

Millions ofyen%Millions of yen

Nine months ended
130,103(4.3)
4,006(17.7)
1,395
3,921 (13.2)
December 31, 2015
Nine months ended
135,981
2.3
4,866
52.3
4,517
52.6
1,819
December 31, 2014
(Note) Comprehensive income: 1,098 million yen in the nine months ended December 31, 2015 (down 50.9%)
2,238 million yen in the nine months ended December 31, 2014 (up 57.6%)
Quarterly Net Income
per Share%(23.3)
97.7

Quarterly Net Income
per Share (Diluted)

Yen

Yen

12.05

10.91

15.81

15.80

Total Assets

Net Assets

Equity Ratio

Net Assets per
Share

Millions of yen

Millions of yen

%

Yen

25.1

361.9925.7

368.15

Nine months ended
December 31, 2015
Nine months ended
December 31, 2014

(2) Consolidated Financial Position

Nine months ended
42,272
164,500
December 31, 2015
Year ended
165,70243,467
March 31, 2015
(Reference) Equity: 41,325 million yen for the nine months ended December 31, 2015
42,544 million yen for the year ended March 31, 2015

2. Dividends
End of Q1
Year ended March 31, 2015
Year ending March 31, 2016
Year ending March 31, 2016
(Forecast)

Annual Dividend
End of Q3

End of Q2

Year-end

Total

Yen

Yen

Yen

Yen

Yen

―
―

6.00
6.00

―
―

6.00

12.00

6.00

12.00

(Note) Revisions of most recently announced dividend forecasts: No

3. Consolidated Earnings Forecasts for the Year Ending March 31, 2016 (April 1, 2015 to March 31, 2016)(% figures represent year-on-year changes)

Sales

Year ending
March 31, 2016

Operating Profit

Net Income
Attributable to
Owners of the
ParentRecurring Profit

Millions of yen%

Millions of yen%

192,200

2.5

7,760

(13.8)

Millions of yen%

7,410 (13.3)

Millions of yen

Net Income per
Share
%

Yen

3,240 (17.7)

28.04(Note) Revisions following most recently announced earnings forecasts: No
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.: Yes
2) Changes in accounting policies other than 1): No
3) Changes in accounting estimates: No4) Restatements: No(Note) For details, please see page 5 of the attached materials: “2. Summary Information (Notes): (3) Changes in Accounting Policies, Estimates,
and Restatements.”(4) Number of shares issued (common stock)139,679,977 shares FY3/2015
155,199,977 shares
1) Shares issued at the end of each period (including treasury stock): Q3 FY3/2016
2) Number of shares of treasury stock at the end of each period:
Q3 FY3/2016
25,517,219 shares FY3/2015
39,637,942 shares
Q3 FY3/2016
115,825,434 shares Q3 FY3/2015
115,061,833 shares
3) Average number of shares during the period (cumulative):(Note)The number of shares of treasury stock at the end of each period (0 shares as of December 31, 2015; 509,800 shares as of March
31, 2015) includes shares of the Company held in trust accounts for the employee stock ownership plan (ESOP). Furthermore, theshares of treasury stock held in ESOP trust accounts are included in the treasury stock, which is subtracted from calculations of
the average number of shares during the period (160,818 shares for the nine months ended December 31, 2015; 729,408 sharesfor the nine months ended December 31, 2014) .

*Information Regarding Execution of Quarterly Review ProceduresThis quarterly financial statement is not subject to the quarterly review procedures pursuant to the Financial Instruments and Exchange Act,and the review procedures of quarterly financial statements pursuant to the Financial Instruments and Exchange Act have not been completed
as of the release of this document.

* 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 Nine Months ended December 31, 2015

[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·········································································· 4(3)Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information ···················· 5

2. Summary Information (Notes)(1)

Changes in Significant Subsidiaries During the Period Under Review ·············································· 5(2)Application of Special Accounting Procedures in the Preparation of
Quarterly Consolidated Financial Statements ·············································································· 5(3)3.

Changes in Accounting Policies, Estimates, and Restatements ······················································ 5
Quarterly Consolidated Financial Statements(1)

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

1

TOKAI Holdings Corporation (3167) Financial Results for the Nine Months ended December 31, 2015

1.

Qualitative Information on Financial Results for the Nine Months Ended December 31, 2015

(1)

Explanation of Consolidated Operating Performance
During the first nine months of the fiscal year ending March 31, 2016, the Japanese economy remained in amodest recovery phase, due in part to recovering corporate earnings, firm individual consumption, and an
improved employment situation. Nevertheless, economic downturns in China and other Asian markets pose adownside risk for the Japanese economy, raising concerns about the impact on the domestic economy.
Under such conditions, in the nine months ended December 31, 2015, the Group conducted its business
operations in line with the three basic policies of its medium-term management plan, “Innovation Plan 2016
‘Growing.’” The three policies are 1) continue to increase sales by winning new customers and improve
profitability, 2) continue to improve the Group’s financial profile and management stability, and 3) provide
continuous and stable returns to shareholders.
In the communications sector, we began offering “Hikari Collaboration” services from March 2015, under amodel that bundles fiber optic services offered by NTT East Japan and NTT West Japan with our internet
service provider (ISP) services. Seeing this as an opportunity to regenerate growth in the broadband business,
we worked diligently to boost the Group’s market share both by redirecting existing customers and winning newcustomers.
In the energy sector, businesses from various industries have announced their entrance into electric power
services due to the full-fledged liberalization of electric power retail sales in April 2016. On October 14, 2015,
the Group signed a business partnership agreement with Tokyo Electric Power Company, Inc. (“TEPCO”), andbegan selling high-voltage power to corporate customers. Furthermore, on December 28, 2015, the Group
entered into agency agreements with TEPCO for the sales of electricity to households. In January 2016, webegan accepting subscriptions for bundled electricity fee plans that combine TEPCO’s electric power services
with the Group’s service offerings.
In terms of financing, in overseas markets, chiefly the Swiss Confederation, we issued 10.0 billion yen in
non-interest-bearing convertible bonds with stock acquisition rights that can boost equity if the bonds areconverted to shares. In this manner, we worked to lower fundraising costs, diversify our sources of funding, andreinforce our financial position.
During the nine months ended December 31, 2015, the Group booked sales of 130,103 million yen (down
4.3% year-on-year), operating profit of 4,006 million yen (down 17.7%), recurring profit of 3,921 million yen(down 13.2%) and quarterly net income attributable to owners of the parent of 1,395 million yen (down 23.3%).
The number of continuing customers was 2,553 thousand, and members of the TLC membership service—aservice aimed at enhancing customer interaction and offering benefits to members—rose by 68 thousand fromMarch 31, 2015, to 464 thousand members.
Performance by segment was as follows.
(Gas and Petroleum)
In the liquefied petroleum gas (LP gas) business, we expanded operations into the city of Iwaki and the area
south of Sendai, in addition to continuing to introduce measures to prevent service cancellations. As a result,the number of customers increased by 3 thousand from March 31, 2015, to 575 thousand. Sales volume of LPgas was flat year-on-year, but sales were down year-on-year as selling prices were lowered to reflect a drop in
procurement prices.
In the city gas business, the number of customers was 53 thousand, largely unchanged from the level as ofMarch 31, 2015, but sales fell year-on-year due to a decline in selling prices stemming from the raw material
price adjustment system.
Due to these factors, segment sales came to 58,348 million yen (down 13.1% year-on-year), but operating
profit was 3,742 million yen (up 33.8%), reflecting lower costs as LP gas procurement prices fell, as well as
successful efforts to increase operating efficiency.

2

TOKAI Holdings Corporation (3167) Financial Results for the Nine Months ended December 31, 2015

(Building and Real Estate)
In the Building and Real Estate business, sales were up year-on-year in areas such as housing sales, newconstruction of retail stores, and building management support services.
Accordingly, segment sales increased to 13,783 million yen (up 3.5% year-on-year). Bolstered by higher
sales, operating profit improved to 117 million yen (compared with an operating loss of 28 million yen in thecorresponding period of the previous fiscal year).
(CATV)
Since the move to implement digital terrestrial broadcasting, the CATV business has seen fierce competition
from major telecommunication companies, and subscriber numbers have continued to fall. However, this figure
grew by 4 thousand subscribers from March 31, 2015, to 497 thousand. During this same period, subscribers totelecommunications services increased by 10 thousand to 207 thousand (153 thousand CATV-FTTH customers
and 54 thousand CATV internet subscribers).
The Company worked to win new customers through attractive pricing and services, while promoting
measures to encourage existing customers to extend their service agreements. Specifically, we worked to lockin customers in detached homes with discounted service offerings based on long-term agreements, andcommenced sales of new bulk services for housing complexes. Meanwhile, through community channels we
worked to create and provide programs aimed at strengthening ties with local communities, and increasing
customer satisfaction.
Owing to these efforts, segment sales totaled 18,345 million yen (up 0.8% year-on-year), and operating
profit was 842 million yen (up 18.8%).
(Information and Communications Service)
In the broadband business, we actively marketed to encourage existing customers to switch to “@TCOM
Hikari” and “TNC Hikari,” services that use Hikari Collaboration. Since the Group’s introduction of Hikari
Collaboration services, some 131 thousand customers have switched to these services (conversion rate of
22.7%). This is faster than the rate of progress for the market as a whole, and contributed to higher sales in thisbusiness. Although many new entrants are beginning the Hikari Collaboration model including major mobile
phone carriers, creating an increasingly competitive environment, our proactive efforts to attract new customers
led to an increase by 8 thousand FTTH customers from March 31, 2015, to 752 thousand customers.
Still, the number of ADSL customers was down by 13 thousand from March 31, 2015, and as a result theoverall number of broadband customers decreased by 5 thousand from March 31, 2015, to 841 thousand
customers.
As a result, segment sales were 31,988 million yen (up 6.6% year-on-year), but operating profit was 391
million yen (down 85.1%) due to higher upfront costs to win customers and promote service conversions.
(Aqua)In the Aqua business, the Company was working proactively to expand its customer reach across Japanthrough sales activities targeting large-scale commercial facilities and others in the Shizuoka and Kanto regions,as well as in the Kansai, Hokuriku, and Tohoku regions. By adopting the character of “Doraemon” as a mascot
and promoting the brand message, “The gift of delicious water: Urunom,” the Company succeeded in increasing
the number of customers to 134 thousand, up by 4 thousand from March 31, 2015.
Sales in this segment came to 4,130 million yen (up 11.4% year-on-year). By working to hold down
advertising and promotion costs, we succeeded in reducing the operating loss to 1,054 million yen (from an
operating loss of 1,270 million yen in the same period of the preceding fiscal year), putting the segment on thepath to profitability.
(Others)
In the nursing care business, the number of users and sales increased thanks to efforts to operate facilities

3

TOKAI Holdings Corporation (3167) Financial Results for the Nine Months ended December 31, 2015

where residents feel comfortable and safe.
In the ships business, although the number of ships repaired was down year-on-year, unit prices rose,leading to higher sales.
In the bridal events business, sales were down in line with the closing of Creation M Bouquet Tokai
Gotemba at the end of March 2015.
As a result, segment sales came to 3,507 million yen (down 3.3% year-on-year), and operating loss was 255
million yen (compared with an operating loss of 324 million yen in the same period of the preceding fiscal year).

(2) Explanation of Consolidated Financial Condition
1) Assets, Liabilities, and Net Assets
Total assets amounted to 164,500 million yen as of December 31, 2015, down 1,201 million yen from March 31,
2015. This decline was mainly attributable to a 2,791 million yen decrease in property, plant and equipment
stemming from depreciation, although current assets grew 2,170 million yen due to an increase in work inprocess.
Total liabilities were 122,228 million yen, down 6 million yen from March 31, 2015. The issuance of 10,000
million yen in convertible bonds with stock acquisition rights pushed liabilities up, but total liabilities declined due
to decreases of 1,904 million yen in income taxes payable, etc.; 3,574 million yen in loans, etc.; and 2,448 million
yen in other current liabilities (mainly deposits and accrued consumption tax).
As of December 31, 2015, net assets totaled 42,272 million yen, down 1,195 million yen from March 31, 2015.
This decrease was principally due to the acquisition of treasury stock, which reduced net assets by 1,059 million
yen.
2) Cash Flows
Cash and cash equivalents stood at 2,533 million yen as of December 31, 2015, down 288 million yen fromMarch 31, 2015.
Cash flows from each activity during the nine months under review and the factors behind them are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was 8,505 million yen (down 6,606 million yen year-on-year). Funds
increased due to quarterly net income before adjustments for income taxes and depreciation and amortization,(non-cash items).
The reason for the major year-on-year decrease in cash flow from operating activities includes a partial
revision of the securitization of receivables, as well as an increase in the amount of consumption tax paid.
(Cash flows from investing activities)
Net cash used in investing activities was 8,750 million yen (down 1,840 million yen year-on-year). Cash wasused mainly for the acquisition of tangible and intangible assets.
(Cash flows from financing activities)
Financing activities used net cash of 47 million yen (up 7,936 million yen year-on-year). Sources of cash
included the issuance of convertible bonds with stock acquisition rights, while cash was used mainly to repay
borrowings and lease obligations.

(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information
The Company maintains its consolidated earnings forecasts for the fiscal year ending March 31, 2016,
announced on May 8, 2015.
Forecasts are judgments based on currently available information. Actual performance may differ fromforecasts due to a variety of factors going forward.

4

TOKAI Holdings Corporation (3167) Financial Results for the Nine Months ended December 31, 2015

2. Summary Information (Notes)(1) Changes in Significant Subsidiaries During the Period Under Review
Not applicable.

(2) Application of Special Accounting Procedures in the Preparation of Quarterly Consolidated
Financial Statements
Not applicable.

(3) Changes in Accounting Policies, Estimates, and Restatements(Changes in Accounting Policies)(Application of Accounting Standard for Business Combinations)
The Company has applied the “Accounting Standard for Business Combinations” (ASBJ Statement No. 21,
September 13, 2013), the “Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No.
22, September 13, 2013), the “Accounting Standard for Business Divestitures” (ASBJ Statement No. 7,
September 13, 2013), and other standards from the first quarter of the fiscal year ending March 31, 2016. As aresult, the accounting method has been changed to record the difference caused by changes in equity insubsidiaries the Company continues to control as capital surplus, and to record acquisition-related costs for the
fiscal year in which the costs were incurred. Furthermore, for business combinations carried out on or after the
beginning of the first quarter of the fiscal year, the accounting method was changed to reflect the reviewed
acquisition cost allocation resulting from the finalization of the provisional accounting treatment in the quarterly
consolidated financial statements of the quarter in which the business combination occurs. In addition, theCompany has changed its presentation of quarterly net income and related items, and renamed “minority
interests” as “non-controlling interests.” The quarterly consolidated financial statements for the nine months
ended December 31, 2014 and for the fiscal year ended March 31, 2015 have been reclassified to reflect thischange.
Application of the Accounting Standard for Business Combinations and other standards is in accordancewith the transitional measures provided for in Article 58-2 (4) of the Accounting Standard for Business
Combinations, Article 44-5 (4) of the Accounting Standard for Consolidated Financial Statements, and Article
57-4 (4) of the Accounting Standard for Business Divestitures. The Company will continue to apply thestandards from the beginning of the first quarter of the fiscal year.
These changes do not affect profits and losses.

5

TOKAI Holdings Corporation (3167) Financial Results for the Nine Months ended December 31, 2015

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

Nine Months Ended

March 31, 2015

December 31, 2015

AssetsCurrent assets
Cash and deposits

2,861

3,306

Notes and accounts receivable–trade

20,085

20,263Merchandise and finished goods

5,367

5,160

Work in process

583

1,558

Raw materials and supplies

745

748

Other

6,642

7,455

Allowance for doubtful accounts

(326)

(363)

35,95938,130Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

38,41336,069Machinery, equipment and vehicles, net

21,68422,058Land

22,00622,034

Other, net

16,83015,981

Total property, plant and equipment

98,93596,143

Goodwill

8,270

6,953

Other

2,953

4,447

Total intangible assets

11,224

11,401

Net defined benefit asset

4,188

3,984

Other

16,24015,471

Allowance for doubtful accounts

(890)

(667)

Total investments and other assets

19,53918,788

129,699

126,33343

36

165,702

164,500

Intangible assets

Investments and other assets

Total non-current assets
Deferred assets
Total assets

6

TOKAI Holdings Corporation (3167) Financial Results for the Nine Months ended December 31, 2015

(Millions of yen)
Fiscal Year Ended

Nine Months Ended

March 31, 2015

December 31, 2015

Liabilities
Current liabilities
Notes and accounts payable–trade

13,035

12,987

Short-term loans payable

33,82135,890Current portion of bonds

2,458

1,208

Income taxes payable

2,089

185

Accruals

1,439

157

Other

18,316

15,868

Total current liabilities

71,16066,297

Non-current liabilities
Bonds payable

1,742

1,363

—

10,00035,04831,077

Accruals

209

215

Net defined benefit liability

271

297

Other

13,803

12,977

Total non-current liabilities

51,07455,930122,234

122,228

Capital stock

14,00014,000Capital surplus

22,315

19,144

Convertible bonds with stock acquisition rights
Long-term loans payable

Total liabilities
Net assets
Shareholders’ equity

Retained earnings

7,803

7,807

Treasury stock(8,033)(5,747)

Total shareholders’ equity

36,08535,204

2,378

2,248

Deferred gains (losses) on hedges

(94)

(135)

Foreign currency translation adjustment

44

5Remeasurement of defined benefit plans

4,130

4,002

Total accumulated other comprehensive income

6,458

6,121

Stock acquisition rights

260

249

Non-controlling interests

662

697

43,46742,272

165,702

164,500

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Total net assets
Total liabilities and net assets

7

TOKAI Holdings Corporation (3167) Financial Results for the Nine Months ended December 31, 2015(2) Quarterly Consolidated Statements of Income, Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Nine Months Ended December 31)(Millions of yen)
Nine Months Ended

Nine Months Ended

December 31, 2014

December 31, 2015

(April 1, 2014 to(April 1, 2015 to

December 31, 2014)

December 31, 2015)

Sales

135,981130,103

Cost of sales

86,42480,047Gross profit

49,55750,056

Selling, general and administrative expenses

44,69046,049Operating profit

4,866

4,006

Interest income

1610

Dividend income

149

157

Commission fee

87

61

Other

312

370

Total non-operating profit

566

600

Interest expenses

744

552

Other

170

133

Total non-operating expenses

914

685

4,517

3,921

Gain on sales of non-current assets

6

6Transmission line facility subsidies

41

60

Subsidy income

970Gain on sales of investment securities

31-

Total extraordinary income

89

137

0

0

Loss on retirement of non-current assets

617

769

Bad-debts expenses—

234

Total extraordinary losses

617

1,003

Quarterly net income before income taxes

3,989

3,055

Income taxes (current)

1,540

955

Income taxes (deferred)

606

664

Total income taxes

2,147

1,619

Quarterly net income

1,841

1,436

22

40

1,819

1,395

Non-operating profit

Non-operating expenses

Recurring profit
Extraordinary income

Extraordinary losses
Loss on sales of non-current assets

Quarterly net income attributable to non-controlling interests
Quarterly net income attributable to owners of the parent

8

TOKAI Holdings Corporation (3167) Financial Results for the Nine Months ended December 31, 2015

(Consolidated Statements of Comprehensive Income)(Nine Months Ended December 31)(Millions of yen)
Nine Months Ended Nine Months Ended
December 31, 2014 December 31, 2015
(April 1, 2014 to(April 1, 2015 to

December 31, 2014) December 31, 2015)
Quarterly net income

1,841

1,436

Valuation difference on available-for-sale securities

796

(129)

Deferred gains (losses) on hedges

(340)

(40)

Foreign currency translation adjustment

(0)

(33)

Remeasurement of defined benefit plans, net of tax

(61)

(128)

2

(6)

397

(337)

2,238

1,098

2,215

1,057

23

40

Other comprehensive income

Share of other comprehensive income of entities accounted for using
the equity method
Total other comprehensive income
Quarterly comprehensive income(Breakdown)Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

9

TOKAI Holdings Corporation (3167) Financial Results for the Nine Months ended December 31, 2015(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)
Nine Months Ended

Nine Months Ended

December 31, 2014

December 31, 2015

(April 1, 2014 to(April 1, 2015 to

December 31, 2014)

December 31, 2015)

Cash flows from operating activities
Quarterly net income before income taxes and minority interests

3,989

3,055

Depreciation

11,12011,008

Amortization of goodwill

1,830

1,549

Increase (decrease) in accrued bonuses(1,247)(1,248)

Increase in net defined benefit asset and liability

111

43

Interest and dividend income

(165)

(168)

(Gain) loss on sale of investment securities

(31)

—

Interest expenses

744

552

(Gain) loss on sales of non-current assets

(6)

(6)

Loss on retirement of non-current assets

617

769

1,772

45

756

(771)

(1,326)(410)

Increase (decrease) in accrued consumption taxes

991(1,540)

Increase (decrease) in deposits received

107(1,063)

Other

(508)

(184)

Subtotal

18,755

11,631

Income taxes paid

(3,643)(3,125)

Net cash provided by operating activities

15,1118,505Interest and dividend income received

211

210

Purchase of securities

(11)

(11)

Proceeds from sales of securities

56-(7,616)(9,126)

Proceeds from sales of tangible and intangible assets

159

124

Collection of loans receivable

378

144

Other

(87)

(90)

(6,909)(8,750)Interest expenses paid

(726)

(550)

Net increase (decrease) in short-term loans payable

4,700

4,568

Repayments of lease obligations(3,017)(2,988)

Increase (decrease) in notes and accounts payable(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable - trade

Cash flows from investing activities

Purchase of tangible and intangible assets

Net cash provided by (used in) in investing activities
Cash flows from financing activities

Proceeds from long-term loans payable

10,500

5,394

Repayment of long-term loans payable(15,882)(11,863)

Redemption of bonds(2,080)(1,629)—

9,980

Payments for acquisition of treasury stock(0)(1,059)Payments made to trust account for acquisition of treasury stock

—

(743)

Proceeds from disposal of treasury stock

250

283

Proceeds from issuance of convertible bonds with stockacquisition rights

10TOKAI Holdings Corporation (3167) Financial Results for the Nine Months ended December 31, 2015

Cash dividends paid

(1,374)(1,389)

(351)

(50)

(7,983)

(47)

9

3

227

(288)

Cash and cash equivalents at beginning of period

3,150

2,821

Cash and cash equivalents at end of period

3,378

2,533

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

11

TOKAI Holdings Corporation (3167) Financial Results for the Nine Months ended December 31, 2015(4) Notes on Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Notes on Significant Changes in Shareholders’ Equity)
Based on a Board of Directors resolution on October 29, 2015, the Company acquired 1,980,000 shares oftreasury stock during the period from October 30, 2015 through December 31, 2015, for a total acquisition costof 1,058 million yen.
Based on the same Board of Directors resolution, on November 6, 2015, the Company canceled 15,520,000
shares of treasury stock, thereby reducing the capital surplus and treasury stock by 3,198 million yen each.
Owing to this acquisition and cancellation of treasury stock, as of December 31, 2015, the capital surplus
amounted to 19,144 million yen and treasury stock to 5,747 million yen.

(Segment Information, etc.)[Segment Information]
I. Nine Months Ended December 31, 2014 (April 1, 2014 to December 31, 2014)
Sales and Income or Losses by Reportable Segment(Millions of yen)
Reportable segments

Petroleumand Real

Quarterly

Information

Building

Gas and

Amount in

CATV

Estateand

Aqua

Communic

Subtotal

Other

1

Total

2

Adjustments Consolidated
Statements ofIncomeations3

Sales
Sales toexternal

67,106

13,311

18,20730,020

108

1,524

653

2,201

67,215

14,836

18,86132,221

2,797

(28)

708

2,633

－

135,981

4,694(4,694)－

3,762 136,896

3,779 140,676(4,694)

135,981(1,270)

(324)

350

4,866

3,707 132,354

3,626 135,981

customers
Intersegment
sales and

55

4,541

152

transfers
Subtotal
Segment income(loss)

4,840

4,515

(Note) 1. The “Other” category is a business segment not included in the reportable segments. This
category includes businesses such as weddings, ship repair, insurance, and nursing care.
2. Adjustments to segment income (loss) are mainly eliminations due to intersegment
transactions.
3. Segment income (loss) is adjusted to match operating profit in the quarterly consolidated
statements of income.

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TOKAI Holdings Corporation (3167) Financial Results for the Nine Months ended December 31, 2015

II. Nine-Months ended December 31, 2015 (April 1, 2015 to December 31, 2015)
Sales and Profits or Losses by Reportable Segment(Millions of yen)
Reportable segments

Petroleumand Real

Quarterly

Information

Building

Gas and

Amount in

CATV

EstateandCommunic

Aqua

Subtotal

Other

1

Total

Adjusmtents

2

Consolidated
Statements ofIncomeations3

Sales
Sales toexternal

58,34813,783

18,34531,988

123

721

617

2,302

58,471

14,505

18,96334,290

3,742

117

842

391

4,130 126,596

3,507 130,103-

130,103

3,970(3,970)-4,194 130,426

3,648 134,074(3,970)130,103(1,054)

(255)

223

4,006

customers
Intersegment
sales and

64

3,829

140

transfer
Subtotal
Segment
income (loss)

4,038

3,783

(Note) 1. The “Other” category is a business segment not included in the reportable segments. This
category includes businesses such as weddings, ship repair, insurance and nursing care.
2. Adjustments to segment income (loss) are mainly eliminations due to intersegment
transactions.
3. Segment income (loss) is adjusted to match operating profit in the quarterly consolidated
statements of income.

13