Consolidated Financial Results for the First Three Months of the
Fiscal Year Ending March 31, 2023 [Japanese GAAP]
July 28 2022
Company name: TOKAI Holdings Corporation
Stock listing:Tokyo Stock Exchange
https://tokaiholdings.co.jp
Stock code:
3167
URL:
Representative:
Katsukiho Tokita, President & CEO
Contact:
Junichi Yamada, Representative Director and Managing Executive Officer, General Manager ofGeneral Affairs Division Headquarters
Telephone: +81-54-275-0007
Scheduled date of filing quarterly report:
August 10, 2022
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 Three-months Ended June 30, 2022
(April 1, 2022 to June 30, 2022)(1) Consolidated Operating Results (cumulative)(% figures represent year-on-year changes)

Sales

Operating Profit

Millions of yen%

Millions of yen

Quarterly Net
IncomeAttributable to
Owners of the
ParentRecurring Profit%

Millions ofyen%Millions of yen

Three-months Ended
3,355
3,389
1.1
51,8037.0
4.0
June 30, 2022
Three-months Ended
3,226
3,353
-12.5
48,396
7.3-14.7
June 30, 2021
(Note) Comprehensive income: 2,544 million yen in the Three-months Ended June 30, 2022 (42.0%)
1,792 million yen in the Three-months ended June 30, 2021 (-56.2%)
Quarterly Net Income
per Share
Three-months Ended
June 30, 2022
Three-months ended
June 30, 2021

%

1,795

-4.0

1,870

-23.5

Quarterly Net Income
per Share (Diluted)

Yen

Yen

13.72

-

14.28

-

(2) Consolidated Financial Position
Total Assets

Net Assets

Millions of yen

Millions of yen

Equity Ratio%

Three-months Ended
183,065
79,256
June 30, 2022
Year ended
184,473
78,946
March 31, 2022
(Reference) Equity: 77,496 million yen for the Three-months Ended June 30, 2022
77,234 million yen for the year ended March 31, 2022

42.3
41.9

2. Dividends
End of Q1

End of Q2

Annual Dividend
End of Q3

Year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ended March 31, 2022

―

15.00

―

17.00

32.00

Year ending March 31, 2023

―
―

16.00

32.00

Year ending March 31, 2023
16.00
(Forecast)(Note) Revisions to most recently announced dividend forecasts: No

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

Sales
Millions ofyen%Operating Profit

Recurring Profit

Net Income
Attributable to
Owners of the
ParentMillions ofyenMillions ofyen%Millions of
yen

%

Yen

-10.1

8,800

-7.5

63.43

%

Year ending March
223,000
5.8
14,500-8.2
14,30031, 2023(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.: Yes
2) Changes in accounting policies other than 1): No
3) Changes in accounting estimates: No4) Restatements: No(Note) For details, refer to Attachment P. 10 See “2. Quarterly Consolidated Financial Statements and Main Notes (4) Notes on Quarterly
Consolidated Financial Statements (Changes in Accounting Policy)”.

(4) Number of shares issued (common stock)
1) Shares issued at the end of each period (including treasury stock):

Q1 FY3/2023

139,679,977 shares FY3/2022

139,679,977 shares

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

Q1 FY3/2023

8,819,996 shares FY3/2022

8,819,780 shares

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

Q1 FY3/2023

130,860,135 shares Q1 FY3/2022

130,966,607 shares(Note) Board benefit trust shares(BBT) is included in the number of year-end treasury stock.(496,900 stocks at Q1 FY3/2023, 496,900
stocks at Q1 FY3/2022) And the company shares 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 (496,900 shares for the Three-months Ended June
31, 2022; 391,300 shares for the Three-months ended June 30, 2022).

* 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.

[Attachment]

Contents

1.

Qualitative Information on Financial Results for the Period Under Review(1) Explanation of Consolidated Operating Results ······················································· 2(2) Explanation of Consolidated Financial Position ························································ 3(3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information · 4

2.

Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets ································································· 5(2) Quarterly Consolidated Statement 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 Going Concern Assumptions)··································································· 10(Changes in Accounting Policies) ············································································ 10(Notes on Significant Changes in Shareholders' Equity) ·············································· 11(Segment Information） ························································································ 111

1.

Qualitative Information on Financial Results for the Period Under Review(1) Explanation of Consolidated Operating Results
During the first three months of the fiscal year ending March 31, 2023, the Japanese economy was on
recovering, despite concern about rising resources prices due to a hike in crude oil prices and a sharp
fall in the Japanese currency. Including the tight electric power supply, concern about LNG supply due
to the prolonged conflict in Ukraine and a spike in COVID-19 cases amid the seventh wave in Japan,
circumstances in the country will still need to be watched closely.
The ongoing fiscal year is the second fiscal year under the Medium-Term Management Plan, called
Innovation Plan 2024 “Design the Future Life” (IP24), for the period until the fiscal year ending March
31, 2025.For the first three months of the fiscal year under review as well, the Group worked as one toaddress five key messages in the IP24: (i) implementation of the LNG strategy (expansion of businessareas), (ii) evolution of the TLC concept, (iii) Stepping up of the DX strategy, (iv) Optimal allocation ofmanagement resources, and (v) Strengthening of SDG initiatives. They continued to serve as
guidelines for the Group.
The Group thus attained positive results in expansion of its business base. The Group saw thenumber of continuing customers rise 19,000 (in comparison with a rise of 9,000 for the same period ayear earlier) to 3,213,000, and the number of TLC Membership Service members increase 19,000 (incomparison with a rise of 19,000 for the same period a year earlier) to 1,016,000. In June, the Groupacquired shares of Wood Recycle Co., Ltd. (Gero City, Gifu Prefecture), a company engaging inindustrial waste treatment and manufacturing of woodchips, and made it a consolidated subsidiary.
In the preceding fiscal year, the Group launched a new Life Design Group (LDG) Vision*. With a viewto realizing this vision, the Group built an organizational structure and has recently begun discussions
on specific developments.
* The LDG Vision is the Group's new vision that describes what it aims to be like in ten years, whichis to contribute to solving social issues by designing and suggesting lifestyles desired by customers.
Under these circumstances, for the first three months ended June 30, 2022, the Group posted net
sales of 51,803 million yen (up 7.0％ year on year).Operating profit came to 3,355 million yen (up4.0%). Ordinary profit stood at 3,389 million yen (up 1.1%). Ordinary profit reached 3,389 million yen(up 1.1%).Profit attributable to owners of parent was 1,795 million yen (down 4.0%), resulting chiefly
from posting of a loss on valuation of investment securities.
Performance by segment is indicated below.
(Energy)In the LP gas business, the number of customers increased 5,000 from the end of the previous fiscal
year, to 720,000, reflecting sustained Group efforts to attract customers.Net sales stood at 19,332
million yen (up 19.4% year on year), chiefly due to a rise in selling prices linked to purchase prices in
the industrial gas business.
In the city gas business, the number of customers grew 1,000 from the end of the previous fiscal year,
to 71,000.Net sales reached 3,941 million yen (up 40.7%), due to the effects of the gas rate adjustment
system.
Net sales in this segment stood at 23,274 million yen (up 22.5%), and operating profit came to 1,125
million yen (up 23.7%).
(Construction, Equipment, and Real Estate)
In the Construction, Equipment and Real Estate business, net sales stood at 4,614 million yen (down
16.3% year on year) and operating loss at 98 million yen (as opposed to operating profit of 82 million
yen in the same period a year earlier). It is explained by decreases in large facilities projects and inprojects for construction of new stores and suchlike.
2

(CATV)In the CATV business, the Group focused on providing local information and the production ofprograms as a community-based service provider. The Group collaborated with major video distributors
to enhance content and enable customers to live a comfortable life amid the COVID-19 pandemic. The
Group continued careful and steady sales activities based on actual conditions in each business area.
The broadcasting services customer count rose to 891,000, an increase of 3,000 from the end of theprevious fiscal year. The communications services customer count increased to 349,000, a rise of 5,000
from the end of the previous fiscal year.
Net sales in this segment stood at 8,239 million yen (up 3.0%), and operating profit came to 1,396
million yen (up 5.7%).
(Information and Communications)
In the business for consumers, the Group worked to acquire customers in an effort to achieve a netincrease in customers. For example, it worked to gain customers in collaboration with major
telecommunications carriers in the ISP business. In the mobile business, the Group broadened its
service lineup and introduced package plans with fixed lines. These actions consequently achieved a
net increase in broadband customers. The number of them surged 3,000 from the end of previous fiscal
year to 657,000.LIMBO customers increased by 3,000 to 58,000.However, a decrease in ARPU
resulted in net sales of 5,961 million yen, down 3.6% year on year.
In the business for corporate clients, net sales came to 6,911 million yen (up 7.4%), mainly reflecting
steady growth in cloud services and an increase in the contract development projects, which are
currently booming.
Net sales in this segment thus stood at 12,873 million yen (up 2.0%). Operating profit came to 881
million yen (down 3.5%), reflecting an increase in expense for gaining broadband customers.
(Aqua)
In⁠⁠ the Aqua (bottled drinking water delivery) business, the number of customers increased 1,000 fromthe end of the previous fiscal year to 166,000. That resulted from sales activities in events at large retailfacilities and others as well as non-face-to-face sales activities such as efforts to win contracts online
and telemarketing.
A decline in consumption per household resulted in net sales in this segment of 1,860 million yen(down 3.2%) and operating loss of 9 million yen (while operating loss of 33 million yen was recorded forthe same period of the previous fiscal year).
(Others)
Net sales in the nursing care business stood at 359 million yen (up 13.4%), reflecting an increase in
the number of users.Net sales in the shipbuilding business came to 125 million yen (down 78.4%), due
to a decrease in the number of ships that the Group repaired. In the bridal events business, net
sales reached 271 million yen (up 34.0%), following a recovery in weddings and receptions.
In this segment, net sales stood at 915 million yen (down 30.7%) and operating profit at 38 million yen(while operating loss of 4 million was posted for the same period in the previous fiscal year).
(2) Explanation of Consolidated Financial Position
1) Assets, Liabilities, and Net Assets
Total assets at the end of the first three months under review stood at 183,065 million yen, a decreaseof 1,407 million yen from the end of the previous fiscal year. The decrease was attributable primarily toa decrease of 5,395 million yen in notes and accounts receivable - trade, and contract assets, due toseasonal factors, among other factors, which was partially offset by an increase of 1,679 million yen inmerchandise and finished goods, a rise of 1,227 million yen in investments and other assets, and a hikeof 991 million yen in Other in current assets chiefly due to an increase in prepaid expenses.
Total liabilities came to 103,809 million yen, a decrease of 1,717 million yen from the end of theprevious fiscal year. This was due to a decrease of 2,591 million yen in notes and accounts payable trade for seasonal and other reasons, a contraction of 2,201 million yen in long-term borrowings and a3

slide of 1,504 million yen in income taxes payable after income tax payment, which were partially offset
by an increase of 3,505 million yen in short-term borrowings.
Total net assets were 79,256 million yen, an increase of 310 million yen from the end of the previous
fiscal year. This was chiefly due to posting of profit attributable to owners of parent of 1,795 million yen
and to increases in valuation difference on available-for-sale securities by 411 million yen and in foreign
currency translation adjustment by 368 million yen despite dividends of surplus of 2,233 million yen.
2) Cash Flows
Cash and cash equivalents (“cash”) as of June 30, 2022 were 4,170 million yen, a decrease of 277
million yen from the end of the previous fiscal year.
Cash flows in the first three months under review and major contributing factors are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was 6,049 million yen (2,289 million yen less year on year).
The cash inflows were attributable primarily to profit before income taxes, a decrease in tradereceivables and depreciation as a non-cash account title, which were partially offset by income taxes
paid, a decrease in trade payables, growth in inventories among other cash outflows.
(Cash flows from investing activities)
Net cash used in investing activities 4,262 million yen (1,453 million yen higher year on year). The
cash outflows were attributable primarily to purchases of property, plant and equipment and intangible
assets.
(Cash flows from financing activities)
Net cash used in financing activities was 2,067 million yen (214 million yen higher year on year).
Loans payable and other cash inflows were more than offset by cash outflows, including repayment ofloans payable, repayments of lease obligations and payment of cash dividends.
(3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information
Results in the first three months of the fiscal year under review were roughly as forecast. The
earnings forecasts for the fiscal year ending March 31, 2023 announced on May 10, 2022 remainunchanged.
The earnings forecasts are based on information available at the time of publication. Actual results may
differ from the forecasts due to a variety of factors.

4

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets
Fiscal Year Ended
March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsMerchandise 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
Total assets

5(Millions of yen)Three Months Ended
June 30, 2022

4,743

4,481

28,56623,170

4,030
740
1,376
8,072
-431
47,098

5,710
1,509
1,358
9,063
-435
44,85935,50024,832
24,911
20,771106,017

35,23524,472
24,817
21,271
105,796

6,040
4,953
10,993

5,948
4,868
10,817

3,769
16,806-211
20,364
137,375
184,473

3,782
18,039-229
21,591
138,206
183,065

Liabilities
Current liabilities
Notes and accounts payable–trade
Short-term borrowings
Income taxes payable
Other provisions
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Other provision
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
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

6

Fiscal Year Ended
March 31, 2022

(Millions of yen)Three Months Ended
June 30, 2022

18,66814,411
2,819
1,762
20,16057,822

16,076
17,9171,315
70
22,84058,21929,736368
1,038
16,56147,704
105,527

27,535387
1,063
16,60345,589103,809

14,00025,55236,395-2,332
73,61514,00025,55235,957-2,332
73,177

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

1,017
738
2,563
4,319
16
1,743
79,256
183,065

(2) Quarterly Consolidated Statements of Income, Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Three Months Ended June 30, 2022)

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
Share of loss of entities accounted for using equity method
Other
Total non-operating expenses
Recurring profit
Extraordinary income
Gain on sales of non-current assets
Gain on donation of non-current assets
Transmission line facility subsidies
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Loss on sale of investment securities
Loss on valuation of investment securities
Anniversary business expenses
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(Millions of yen)Three Months Ended Three Months Ended
June 30, 2021
June 30, 2022
(April 1, 2021 to(April 1, 2022 toJune 30, 2021)
June 30, 2022)
48,39651,80328,67731,267
19,71820,536
16,491
17,181
3,226
3,355
1
156
9
82
250

5
100
8
112
227

68
37
18
124
3,353

65
99
28
193
3,389

7
60
11
79
159

8
－
21
31
61

206
0
187
394
3,118
1,379
-173
1,206
1,912
42
1,870

0
187
－
302
－
490
2,960
1,269
-151
1,117
1,842
47
1,795

(Consolidated Statements of Comprehensive Income)(Three Months Ended June 30, 2022)

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 ownersof the parent
Quarterly comprehensive income attributable to noncontrolling interests

8

Three Months Ended
June 30, 2021
(April 1, 2021 toJune 30, 2021)
1,912(Millions of yen)Three Months Ended
June 30, 2022
(April 1, 2022 toJune 30, 2022)
1,842

-296
211
-4
-47

411
－
0
-80

17

370

-119
1,792

702
2,544

1,750

2,495

41

49

(3) Quarterly Consolidated Statements of Cash Flows

Cash flows from operating activities
Quarterly net income before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in provision for bonuses
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
Loss (gain) on valuation of investment securities
Loss on retirement of non-current assets(Increase) decrease in notes and accounts payable(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable – trade
Increase (decrease) in accrued consumption taxes
Increase (decrease) in deposits received
Other
Subtotal
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Interest and dividend income received
Proceeds from withdrawal of time deposits
Purchase of securities
Proceeds from sales of securities
Purchase of tangible and intangible assets
Proceeds from sales of tangible and intangible assets
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Proceeds from collection 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
Repayment of long-term loans payable
Payments for acquisition of treasury stock
Cash dividends paid
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

9

Three Months
Ended
June 30, 2021
(April 1, 2021 toJune 30, 2021)(Millions of yen)Three Months
Ended
June 30, 2022
(April 1, 2022 toJune 30, 2022)

3,118
3,731
262
-1,352
-53
-157
-79
68
-7
－
206
4,882
627
-1,806
2,968
-414
-535
11,459-3,120
8,339

2,960
3,731
244
-1,424
-102
-106
-21
65
-8
302
187
6,312
-2,427-2,592
3,028
103-1,056
9,197-3,147
6,049

171
820
-4
200
-4,282
96

116
－
-729
32
-3,761162-2,664-86

1-55-5,7165-1-4,262-69
3,270-1,080-2,380-0-2,013-8-2,282
-1
339
5,136
5,475

-65
3,850
-1,157-2,546-0-2,140-8-2,067
3
-277
4,447
4,170

(4) Notes on Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Changes in Accounting Policies)(Application of Implementation Guidance on Accounting Standard for Calculation of Fair
Value)The Company has applied the "Implementation Guidance on Accounting Standard for
Calculation of Fair Value" (ASBJ Guidance No. 31, June 17, 2021; hereinafter the"Implementation Guidance on Accounting Standard for Market Value Calculation") from the
beginning of the first quarter of the current fiscal year, and decided to apply the new
accounting policy stipulated by the Implementation Guidance on Accounting Standard forMarket Value Calculation in accordance with the transitional treatment stipulated in Article27-2 of the Implementation Guidance on Accounting Standard for Market Value Calculationin the future.
The adoption of this accounting standard had no impact on the quarterly consolidated
financial statements.
(Notes on Significant Changes in Shareholders’ Equity)
Not applicable.
(Segment Information, etc.)[Segment Information]
I. Three Months Ended June 30, 2021 (April 1, 2021 to June 30, 2021)
Sales and Income of Losses by Reportable Segment(Millions of yen)
Reportable segments
Constru
Information
ction,
Other1andEnergy Equipm CATV
Aqua Subtotal
Communic
ent Real
ationsestateSales
Sales toexternalcustomers
Intersegment
sales andtransfers
Subtotal
Segment income(loss)(Notes)18,998

5,542

7,996

12,619

49

580

134

1,151

19,047

6,122

8,130

13,770

910

82

1,320

913

1,921 47,076
5

1,922

1,926 48,998
-33

3,192

Total

Adjustments2

Amount inquarterly
consolidated
statements ofIncome3

1,319 48,396－

48,396

1,947-1,947－

1,344 50,343-1,947

48,396

3,188

38

3,226

25

-4

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.

10II. Three Months Ended June 30, 2022 (April 1, 2022 to June 30, 2022)
Sales and Income of Losses by Reportable Segment(Millions of yen)
Reportable segments
Constru
Information
ction,
Other1andAqua Subtotal
Energy Equipm CATV
Communic
ent Real
ationsestateSales
Sales toexternalcustomers
Intersegment
sales andtransfers

23,274

4,641

8,239

12,873

50

210

122

971

Subtotal

23,324

4,851

8,362

13,844

Segment income(loss)

1,125

-98

1,396

881

(Notes)1,860 50,888
5

1,360

1,865 52,249
-9

3,295

Total

Adjustments2

Amount inquarterly
consolidated
statements ofIncome3

915 51,803－

51,803

1,454-1,454－

1,009 53,258-1,45451,803

21

3,355

94

38

3,333

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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