Consolidated Financial Results for the Second Quarter of the
Fiscal Year Ending March 31, 2017 [Japanese GAAP]
October 31, 2016
Company name:
Stock code:
Representative:
Contact:

TOKAI Holdings Corporation
Stock listing:Tokyo Stock Exchange
3167
URL:
http://tokaiholdings.co.jp
Katsukiho Tokita, President & CEO
Hiroyuki Ozawa, Managing Executive Officer, General Manager of Administrative Headquarters
Telephone: +81-54-275-0007
Scheduled date of filing quarterly report:
November 11, 2016
Scheduled date of dividend payment:
November 30, 2016
Supplementary materials on quarterly financial results:
Yes
Quarterly financial results briefing:
Yes (For institutional investor)(Figures are rounded to the nearest million yen)

1. Consolidated Financial Results for the Six-months period Ended September 30, 2016
(April 1, 2016 to September 30, 2016)(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

Six months ended
4,406
4,428 148.9
82,201(3.0)
137.4
September 30, 2016
Six months ended
(2.9)
1,856
2.2
1,779
12.2
84,773September 30, 2015
(Note) Comprehensive income: 2,906 million yen in the six months ended September 30, 2016 (--%)(403) million yen in the six months ended September 30, 2015 (--%)
Quarterly Net Income
per Share

%

2,384

760.2

277

22.8

Quarterly Net Income
per Share (Diluted)

Yen

Yen

21.00

18.21

2.39

2.21

Total Assets

Net Assets

Equity Ratio

Net Assets per
Share

Millions of yen

Millions of yen

%

Yen

28.2

380.7425.6

362.77Six months ended
September 30, 2016
Six months ended
September 30, 2015

(2) Consolidated Financial Position

Six months ended
153,384
44,004September 30, 2016
Year ended
160,303
41,970March 31, 2016
(Reference) Equity: 43,258 million yen for the six months ended September 30, 2016
41,063 million yen for the year ended March 31, 2016

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, 2016

―

6.00

―

8.00

14.00

Year ending March 31, 2017

―

11.00

Year ending March 31, 2017
―
28.00
17.00
(Forecast)(Note) Revisions to most recently announced dividend forecasts: Yes(Note) The breakdown of the year-end dividen(forcast) are ordinary dividend of 11 yen and commemorative dividend of
6 yen.

3. Consolidated Earnings Forecasts for the Year Ending March 31, 2017 (April 1, 2016 to March 31, 2017)(% figures represent year-on-year changes)

Sales
Millions of yen

Operating Profit%

Millions of yen%

Recurring Profit
Millions of yen

Year ending
179,700(0.7)
12,750 54.7
12,360March 31, 2017
(Note) Revisions to most recently announced earnings forecasts: Yes

Net Income
Attributable to
Owners of the Parent

Net Income
per Share%

Millions of yen

%

Yen

51.6

6,500

88.0

57.23

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)
1) Shares issued at the end of each period (including treasury stock):2) Number of shares of treasury stock at the end of each period:

Q2 FY3/2017

139,679,977 shares FY3/2016

139,679,977 shares

Q2 FY3/2017
Q2 FY3/2017

26,065,096 shares FY3/2016
113,546,363 shares Q1 FY3/2016

26,488,216 shares
115,846,636 shares

3) Average number of shares during the period (cumulative):(Note) Board benefit trust shares(BBT) is included in the number of year-end treasury stock.(420,000 stocks at Q2 FY3/2017) And thecompany shares held in ESOP trust accounts are included in the treasury stock, which is subtracted from calculations of theaverage number of shares during the period (2,295 shares for the six months ended September 30, 2016; 241,667 shares for thesix months ended September 30, 2015).

*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 Six Months ended September 30, 2016

[Attachment]
Contents
1. Qualitative Information on Financial Results for the Period Under Review(1) Explanation of Consolidated Operating Performance ······························································ 2(2) Explanation of Consolidated Financial Condition ···································································· 3(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information ·············· 4
2. 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) Changes in Accounting Policies, Estimates, and Restatements ················································· 5(4) Additional Information ······································································································· 5
3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets ··············································································· 6(2) Quarterly Consolidated Statements of Income, Consolidated Statements ofComprehensive 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 Six Months ended September 30, 2016

1. Qualitative Information on Financial Results for the Period Under Review(1) Explanation of Consolidated Operating Performance
During the first six months of the fiscal year ending March 31, 2017, the Japanese economy was in a modest
recovery phase. However, the economic outlook remained uncertain, due to economic deceleration in China andemerging markets, further yen appreciation, and stagnant stock market prices.
The Group’s medium-term management plan, “Innovation Plan 2016 ‘Growing,’” is positioned as a period torealize “strengthened business profitability,” and the fiscal year ending March 31, 2017, is the final year of the plan.
The Group has adopted TLC (Total Life Concierge) as its vision, themed on increasing transaction channels andcreating strong customer relationships. Taking this approach, in April 2016 the Company added electricity services
to its existing lineup of household services, including gas, ISP, CATV, and Aqua. Along with our efforts to attract
customers, we focused on acquiring customers through sales of set offerings of household services (set discounts
and the granting of points multiplied by the number of contracts).
During the six months ended September 30, 2016, the Group booked sales of 82,201 million yen (down 3.0%
year on year), affected by such factors as a decrease in gas selling prices. However, we made steady progress on
improving earnings in the Hikari Collaboration and Aqua businesses—area of focus for the fiscal year ending
March 31, 2017. As a result, the Company recorded operating profit of 4,406 million yen (up 137.4%), recurring
profit of 4,428 million yen (up 148.9%) and quarterly net income attributable to owners of the parent of 2,384 million
yen (up 760.2%).
The number of continuing customers was 2,554 thousand, slightly down from March 31, 2016. Members of the
TLC Membership Service numbered 535 thousand as of September 30, 2016.
Performance by segment was as follows.
(Gas and Petroleum)
In the liquefied petroleum gas (LP gas) business, while the number of customers was unchanged from March 31,
2016, at 580 thousand, and sales volume of LP gas was flat year on year, sales were down year on year as selling
prices were lowered during the previous fiscal year to reflect a drop in procurement prices.
In the city gas business, the number of customers was 54 thousand, unchanged from the level as of March 31,
2016, 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 32,496 million yen (down 14.4% year on year), but operating profit
was 1,768 million yen (up 5.3%), reflecting a decrease in prices of raw materials for gas.
(Building and Real Estate)
In the Building and Real Estate business, although trends in orders received were strong, delays in the periods
when project sales are booked led to segment sales of 8,040 million yen (down 13.6% year on year) and operating
profit of 28 million yen (down 57.0%).
(CATV)In the CATV business, we worked to acquire new customers through sales of set discount offerings forbroadcasting and communications, in addition to smartphone set discounts through alliances with major mobile
phone carriers.
In addition, owing to efforts to improve customer satisfaction such as delivery of regional information via
community channels and reinforcing customer support to prevent cancellations, subscribers to the broadcasting
service increased by 4 thousand from March 31, 2016, to 503 thousand, and subscribers to telecommunications
services increased by 7 thousand from March 31, 2016, to 218 thousand.
Due to an increase in subscribers, segment sales totaled 12,560 million yen (up 2.9% year on year), andcombined with cost reductions, operating profit was 1,240 million yen (up 124.8%).
2

TOKAI Holdings Corporation (3167) Financial Results for the Six Months ended September 30, 2016

(Information and Communications Service)
In the broadband business, while acquiring new customers, we actively marketed to encourage existingcustomers to switch to Hikari Collaboration services “@TCOM Hikari” and “TNC Hikari,” so the number of Hikari
Collaboration customers increased by 53 thousand from March 31, 2016, to 272 thousand. Amid an increasinglycompetitive environment due to many new entrants, including major mobile phone carriers, customers for overall
FTTH were 739 thousand, and customers for overall broadband, which includes ADSL, fell by 15 thousand fromMarch 31, 2016, to 819 thousand.
Segment sales were 23,750 million yen (up 16.3% year on year), primarily owing to Hikari Collaboration line
sales and an increase in paying customers, and operating profit surged to 1,347 million yen (up 270.5%).
(Aqua)In the Aqua business, the Company moved forward with sales activities for the “The gift of delicious water:
Ulunom” brand, mainly targeting large-scale commercial facilities, and succeeded in increasing the number ofcustomers to 135 thousand, up by 2 thousand from March 31, 2016. The number of units sold also increased year
on year.
As a result, sales in this segment came to 2,929 million yen (up 6.7% year on year), and by restricting customer
acquisition costs and advertising and promotion costs, we succeeded in moving into the black in this segment on
an operating basis, with operating profit amounting to 92 million yen (from an operating loss of 699 million yen in
the same period of the preceding fiscal year).
(Others)
In the nursing care business, an increase in the number of users led to higher sales year on year.
In the ships business, sales were up, as the number of ships repaired increased.
In the bridal events business, sales rose year on year due to an increase in the number of couples holding
ceremonies.
As a result, segment sales came to 2,423 million yen (up 13.8% year on year), and the operating loss was 59
million yen (compared with an operating loss of 291 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 153,384 million yen on September 30, 2016, down 6,918 million yen from March 31,
2016. This decline was mainly attributable to a 3,239 million yen decrease in notes and accounts receivable–tradedue to seasonal factors, and a 1,920 million yen decrease in property, plant and equipment stemming fromdepreciation.
Total liabilities were 109,380 million yen, down by 8,952 million yen from March 31, 2016. This was primarily due
to a decrease of 1,828 million yen in notes and accounts payable–trade owing to seasonal factors, and a reductionof 5,648 million yen in interest-bearing debt resulting from repayments of borrowings.
As of September 30, 2016, net assets totaled 44,004 million yen, up by 2,033 million yen from March 31, 2016.
This increase was principally due to the recording of 2,384 million yen in quarterly net income attributable toowners of the parent and a 716 million yen increase in valuation difference on available-for-sale securities, despite
decreases of 905 million yen due to the payment of dividends from surplus.
2) Cash Flows
Cash and cash equivalents stood at 2,580 million yen as of September 30, 2016, down 1,464 million yen fromMarch 31, 2016.
Cash flows from each activity during the six months under review and the factors behind them are as follows.

3

TOKAI Holdings Corporation (3167) Financial Results for the Six Months ended September 30, 2016

(Cash flows from operating activities)
Net cash provided by operating activities was 12,039 million yen (up 7,626 million yen year on year). Funds
increased chiefly due to quarterly net income before income taxes and the effect of depreciation and amortization
expenses (non-cash items).
Although net cash provided by operating activities was up significantly year on year, the rise was due mainly to anincrease in quarterly net income before income taxes, as well as to a partial revision of the securitization ofreceivables in the corresponding period of the preceding fiscal year.
(Cash flows from investing activities)
Net cash used in investing activities was 4,668 million yen (up 620 million yen year on year). Cash was usedmainly for the acquisition of tangible and intangible assets.
(Cash flows from financing activities)
Net cash used in financing activities was 8,833 million yen (down 9,069 million yen year on year). This was
mainly due to efforts to reduce interest-bearing debt.
Additionally, cash flows from financing activities decreased significantly year on year, but this was primarily due tothe absence of proceeds from issuance of convertible bonds with stock acquisition rights, present in the same
period of the preceding year, and aggressive efforts to reduce interest-bearing debt.
(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information
The Company has revised its consolidated earnings forecasts for the fiscal year ending March 31, 2017,
announced on May 10, 2016.
For details, please refer to “Notice Regarding Difference between Earnings Forecasts and Financial Results for
the First Half of the Fiscal Year Ending March 31, 2017 and Revision to Full-Year Earnings Forecasts,” announced
today (October 31, 2016).

4

TOKAI Holdings Corporation (3167) Financial Results for the Six Months ended September 30, 2016

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 Practical Solution on a change in depreciation method due to Tax Reform 2016)
In line with revision to the Corporation Tax Act, the Company has applied the “Practical Solution on a change
in depreciation method due to Tax Reform 2016” (Practical Issues Task Force(PITF) No. 32, June 17, 2016)
from the three months ended June 30, 2016, and the depreciation method for facilities attached to buildings
and structures acquired from April 1, 2016, onward has been changed from the declining balance method tothe straight-line method.
The effect of this change on profit and loss is immaterial.
(4) Additional Information(Application of Implementation Guidance on Recoverability of Deferred Tax Assets)
The Company has applied the “Implementation Guidance on Recoverability of Deferred Tax Assets”(Accounting Standards Board of Japan Implementation Guidance No. 26, March 28, 2016) from the threemonths ended June 30, 2016.
(Board Benefit Trust (BBT))
1) Overview of the Transaction
At a Board of Directors meeting on May 10, 2016, the Company resolved to implement a new stock-based
compensation system, a Board Benefit Trust, or BBT (“the System” below) with regard to the compensationof the Company’s directors, executive officers, administrative officers, and the directors and administrative
officers of some of the Company’s subsidiaries (excluding outside directors; “Executives” below). The System
was resolved as compensation for Executives at the 5th Ordinary General Meeting of Shareholders on June24, 2016.
The System is a stock-based compensation system whereby the Company contributes an appropriate
amount of money to a trust and the trust uses this money as funds to acquire shares of the Company. Sharesof the Company or cash equivalent to the market value of shares of the Company as of the date of
Executives’ resignation are paid to Executives in accordance with executive stock-based compensation rules
stipulated by the Company and Company subsidiaries covered by the System. In principle, Executives shallreceive payment of shares of the Company or equivalent cash upon their resignation.
In accordance with the “Practical Solution on Transactions of Delivering the Company’s Own Stock to
Employees etc. through Trusts” (PITF No. 30, December 25, 2013), the gross price method is employed forthis transaction.
2) Shares in the Company Remaining in the Trust
The number of shares in the Company remaining in the Trust shall be recorded as treasury stock within net
assets at the carrying amount of the trust (excluding the amount of ancillary expenses). As of September 30,
2016, the carrying amount of this treasury stock was 261 million yen, and the number of shares was 420,000.

5TOKAI Holdings Corporation (3167) Financial Results for the Six Months ended September 30, 2016

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

Six Months Ended

March 31, 2016

September 30, 2016

AssetsCurrent assets
Cash and deposits

4,077

2,704

Notes and accounts receivable–trade

21,30518,066Merchandise and finished goods

4,307

3,998

Work in process

610

943

Raw materials and supplies

694

678

Other

7,512

6,472

Allowance for doubtful accounts

(391)

(398)

Total current assets

38,11732,465

Buildings and structures, net

35,17834,060Machinery, equipment and vehicles, net

22,074

21,673

Land

21,825

21,825

Other, net

15,986

15,584

Total property, plant and equipment

95,064

93,144

Goodwill

6,589

6,399

Other

4,350

4,639

Total intangible assets

10,94011,038Net defined benefit asset

2,360

2,400

Other

14,387

14,962

Allowance for doubtful accounts

(599)

(652)

Total investments and other assets

16,14916,709122,153

120,89231

26

160,303

153,384

Non-current assets
Property, plant and equipment

Intangible assets

Investments and other assets

Total non-current assets
Deferred assets
Total assets

6

TOKAI Holdings Corporation (3167) Financial Results for the Six Months ended September 30, 2016

(Millions of yen)
Fiscal Year Ended

Six Months Ended

March 31, 2016

September 30, 2016

Liabilities
Current liabilities
Notes and accounts payable–trade

13,511

11,682

Short-term loans payable

27,82823,532Current portion of bonds

758

758

Income taxes payable

1,954

2,021

Accruals

1,459

1,648

Other

17,446

15,975

Total current liabilities

62,95855,618984

605

Convertible bonds with stock acquisition rights

10,00010,000Long-term loans payable

31,83930,866

Accruals

68

26

Net defined benefit liability

308

334

Other

12,172

11,928

Total non-current liabilities

55,37353,761

118,332

109,380

Capital stock

14,00014,000Capital surplus

19,25819,548Retained earnings

9,870

11,349Treasury stock(6,409)(6,466)

Total shareholders’ equity

36,71938,431

1,153

1,869

230

113

Foreign currency translation adjustment

1

(37)

Remeasurement of defined benefit plans

2,958

2,881

Total accumulated other comprehensive income

4,343

4,826

Stock acquisition rights

208－

Non-controlling interests

699

746

41,97044,004160,303

153,384

Non-current liabilities
Bonds payable

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges

Total net assets
Total liabilities and net assets

7

TOKAI Holdings Corporation (3167) Financial Results for the Six Months ended September 30, 2016

(2) Quarterly Consolidated Statements of Income, Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Six Months Ended September 30, 2016)(Millions of yen)
Six Months Ended

Six Months Ended

September 30, 2015

September 30, 2016

(April 1, 2015 to(April 1, 2016 to

September 30, 2015)

September 30, 2016)

Sales

84,77382,201

Cost of sales

52,56548,577Gross profit

32,20733,624

Selling, general and administrative expenses

30,351

29,218Operating profit

1,856

4,406

Interest income

75

Dividend income

91

103

Commission fee

40

41

Other

258

234

Total non-operating profit

398

385

Interest expenses

376

283

Other

98

79

Total non-operating expenses

474

362

1,779

4,428

Gain on sales of non-current assets

6

5Transmission line facility subsidies

28

15

Subsidy income

702Gain on reversal of stock acquisition rights－

98

Total extraordinary income

105

121

0

0

Loss on retirement of non-current assets

563

329

Bad debt losses

234－

Total extraordinary losses

797

329

1,087

4,220

Income taxes (current)

736

1,731

Income taxes (deferred)

49

64

Total income taxes

786

1,795

Quarterly net income

301

2,425

Quarterly net income attributable to non-controlling interests

24

41

Quarterly net income attributable to owners of the parent

277

2,384

Non-operating profit

Non-operating expenses

Recurring profit
Extraordinary income

Extraordinary losses
Loss on sales of non-current assets

Quarterly net income before income taxes

8

TOKAI Holdings Corporation (3167) Financial Results for the Six Months ended September 30, 2016

(Consolidated Statements of Comprehensive Income)(Six Months Ended September 30, 2016)(Millions of yen)

Quarterly net income

Six Months Ended

Six Months Ended

September 30, 2015

September 30, 2016

(April 1, 2015 to(April 1, 2016 to

September 30, 2015)

September 30, 2016)
301

2,425

Valuation difference on available-for-sale securities

(333)

716

Deferred gains (losses) on hedges

(281)

(116)

Foreign currency translation adjustment

(13)

(22)

Remeasurement of defined benefit plans, net of tax

(85)

(76)

9

(20)

(704)

480

(403)

2,906

(427)

2,865

24

41

Other comprehensive income

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

9

TOKAI Holdings Corporation (3167) Financial Results for the Six Months ended September 30, 2016(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)
Six Months Ended

Six Months Ended

September 30, 2015 September 30, 2016
(April 1, 2015 to(April 1, 2016 to

September 30, 2015) September 30, 2016)
Cash flows from operating activities
Quarterly net income before income taxes

1,087

4,220

Depreciation

7,325

7,205

Amortization of goodwill

1,050

605

Increase (decrease) in net defined benefit asset and liability

29

(122)

Interest and dividend income

(98)

(109)

Interest expenses

376

283

(Gain) loss on sales of non-current assets

(6)

(5)

Loss on retirement of non-current assets

563

329

2,172

3,184

353

(7)

Increase (decrease) in notes and accounts payable–trade(1,884)(1,794)

Increase (decrease) in accrued consumption taxes(1,574)(284)

Increase (decrease) in deposits received(2,094)

(210)

Other

(901)

301

Subtotal

6,398

13,597

Income taxes paid

(1,985)(1,558)Net cash provided by (used in) operating activities

4,412

12,039124

138(Increase) decrease in notes and accounts payable(Increase) decrease in inventories

Cash flows from investing activities
Interest and dividend income received
Purchase of securities

(7)

(7)

(5,558)(4,887)

Proceeds from sales of tangible and intangible assets

94

89Collection of loans receivable

134

34

Other

(76)

(35)

(5,289)(4,668)Interest expenses paid

(390)

(291)

Net increase (decrease) in short-term loans payable(882)(3,300)

Repayments of lease obligations(2,061)(2,025)

Proceeds from long-term loans payable

4,000

4,950

Repayment of long-term loans payable(8,321)(6,919)Payments for redemption of bonds payable(1,629)(379)

Proceeds from issuance of convertible bonds with stock acquisition rights

9,980

－

Payments for acquisition of treasury stock

(0)

(261)

Proceeds from disposal of treasury stock

272

384

Cash dividends paid

(694)

(904)

Other

(36)

(84)

Net cash provided by (used in) financing activities

236(8,833)(5)(1)

Purchase of tangible and intangible assets

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

Effect of exchange rate change on cash and cash equivalents

10TOKAI Holdings Corporation (3167) Financial Results for the Six Months ended September 30, 2016

Net increase (decrease) in cash and cash equivalents(646)(1,464)

Cash and cash equivalents at beginning of period

2,821

4,044

Cash and cash equivalents at end of period

2,175

2,580

11

TOKAI Holdings Corporation (3167) Financial Results for the Six Months ended September 30, 2016(4) Notes on Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.

(Notes on Significant Changes in Shareholders’ Equity)
Not applicable.

(Segment Information, etc.)[Segment Information]
I. Six Months Ended September 30, 2015 (April 1, 2015 to September 30, 2015)
Sales and Income of Losses by Reportable Segment(Millions of yen)
Reportable segments

Amount inInformation

quarterly

Building
Gas and1

andand Real CATVPetroleum

Aqua Subtotal

Other

2

Total Adjustments

consolidated

Communi-statements ofcations

Income3

EstateSales
Sales toexternal

37,9589,301 12,212

20,425 2,746 82,644 2,128 84,773-

84,773

2,676(2,676)-

21,957 2,804 85,224 2,225 87,449(2,676)

84,773186

1,856

customers
Intersegment
sales and

79

498

412

1,532

57

2,579

97

transfers
Subtotal

38,037

9,799 12,624

Segment income
1,679

66

551

363 (699)

1,961 (291)

1,669(loss)(Notes) 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 Six Months ended September 30, 2016

II. Six Months Ended September 30, 2016 (April 1, 2016 to September 30, 2016)
Sales and Income of Losses by Reportable Segment(Millions of yen)
Reportable segments
Building

Amount in quarterly

Information

Gas andand Real CATV and Communi- Aqua Subtotal

Other1 Total Adjustments2

statements ofPetroleum
Estateconsolidated

Income3

cations

Sales
Sales toexternal

32,4968,040 12,560－

82,201

3,067(3,067)－25,250 3,002 82,752 2,517 85,269(3,067)

82,201

(13)

4,406

23,750 2,929 79,778 2,423 82,201

customers
Intersegment
sales and

100

903

396

1,499

73

2,973

94

transfers
Subtotal

32,597

8,944 12,957

Segment income
1,768

28

1,240

1,347

92

4,478

(59)

4,419

(loss)(Notes) 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