Consolidated Financial Results for the First Three Month of the
Fiscal Year Ending March 31, 2025 [Japanese GAAP]
August 1, 2024
Company name:
Stock code:
Representative:
Contact:

TOKAI Holdings Corporation
Stock listing:Tokyo Stock Exchange
3167
URL:
https://tokaiholdings.co.jp/english/
Katsuo Oguri, President & CEO
Junichi Yamada, Representative Director and Managing Executive Officer General Manager ofGeneral Affairs Headquarters
Telephone: +81-54-275-0007
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, 2024
(April 1, 2024 to June 30, 2024)(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 of
yen

%

%

Millions of yen

Three-months Ended
56,205
3,319
3,441
31.5
4.1
33.6
June 30, 2024
Three-months Ended
53,971
2,484
2,617
-22.8
4.2
-26.0
June 30, 2023
(Note) Comprehensive income: 2,947 million yen in the Three-months Ended June 30, 2024 (53.8%)
1,916 million yen in the Three-months Ended June 30, 2023 (-24.7%)

%

1,872

39.9

1,338

-25.4

Quarterly Net Income per Share(Diluted)

Quarterly Net Income per Share
Yen

Yen

Three-months Ended June 30, 2024

14.33

14.33

Three-months Ended June 30, 2023

10.25

-

(2) Consolidated Financial Position
Total Assets

Net Assets

Millions of yen

Millions of yen

Equity Ratio%

Three-months Ended June 30, 2024

206,246

92,074

43.5

Year ended March 31, 2024

205,301

91,30043.4(Reference) Equity: 89,712 million yen for the Three-months Ended June 30, 2024
89,034 million yen for the year ended March 31, 2024

2. Dividends
End of Q1

End of Q2

Annual Dividend
End of Q3

Year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ending March 31, 2024

―

16.00

―

17.00

33.00

Year ending March 31, 2025

―
―

17.00

34.00

Year ending March 31, 2025
17.00
(Forecast)(Note) Revisions to most recently announced dividend forecasts: No

3. Consolidated Earnings Forecasts for the Year Ending March 31, 2025 (April 1, 2024 to March 31, 2025)(% 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

3.0

9,000

6.1

68.90

%

Year ending March
244,000
5.4
16,0003.2
16,00031, 2025(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): Yes
Newly included: 3 companies (Company names): FujiPro Co., Ltd., GUT Co., Ltd., PT TOKAICOM Mitra Indonesia
Excluded (Company names): None.
(Note) For details, please refer to the attached document on page 10, "2. Quarterly Consolidated Financial Statements and Primary Notes(4) Notes on Quarterly Consolidated Financial Statements (Changes in the Scope of Consolidation or Application of the Equity Method)."(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): No3) Changes in accounting estimates: No4) Restatements: No(Note) For details, please refer to the attached document on page 10, "2. Quarterly Consolidated Financial Statements and Primary Notes(4) Notes on Quarterly Consolidated Financial Statements (Notes on Changes in Accounting Policies)."(4) Number of shares issued (common stock)
1) Shares issued at the end of each period (including treasury stock):

Q1 FY3/2025

139,679,977 shares FY3/2024

139,679,977 shares

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

Q1 FY3/2025

9,050,954 shares FY3/2024

9,051,754 shares

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

Q1 FY3/2025

130,628,343 shares Q1 FY3/2024

130,574,271 shares(Note) The number of treasury shares at the end of the fiscal year includes the Company's shares held by the Stock Benefit Trust (BBT)(730,500 shares in the 1Q of the fiscal year ending March 2025, and 730,500 shares in the fiscal year ending March 2024).
In addition, the treasury stock deducted in calculating the average number of shares during the period includes the Company's
shares held by the Stock Benefit Trust (BBT) (730,500 shares in the 1Q of the fiscal year ending March 2025, 782,100 shares in
the 1Q of the fiscal year ending March 2024).

* Review by a certified public accountant or audit firm for the attached quarterly consolidated financial statements: None

* Explanation of the appropriate use of earnings forecasts and other special notes(Caution regarding forward-looking statements)
The forward-looking statements, including earnings forecasts, contained in this document are based on information currently
available to the company and certain assumptions that the company believes are reasonable. They are not intended as a promiseof achievement by the company. Actual results may differ significantly due to various factors.
(Regarding the review by a certified public accountant or audit firm)
The company plans to undergo a review by an audit firm and will disclose the quarterly financial report with the review reportattached after the review is completed (scheduled for August 8, 2024).

TOKAI Holdings Corporation (3167) Financial Results for the Three months Ended June 30, 2024

[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 the Financial Reporting Framework) ········································································ 10(Notes on Going Concern Assumptions) ················································································· 10(Changes in the Scope of Consolidation or Application of the Equity Method) ································· 10(Notes on Changes in Accounting Policies) ············································································· 10(Additional Information) ······································································································· 10(Notes on Significant Changes in Shareholders’ Equity) ····························································· 11(Notes on the Quarterly Consolidated Balance Sheet) ······························································· 11(Notes on the Quarterly Consolidated Statement of Cash Flows) ················································· 11(Notes on Shareholders' Equity) ···························································································· 11(Segment Information, etc.) ·································································································· 12(Note on revenue recognition) ······························································································ 14(Note on per share information)····························································································· 16

1

TOKAI Holdings Corporation (3167) Financial Results for the Three months Ended June 30, 2024

1. Qualitative Information on Financial Results for the Period Under Review(1) Explanation of Consolidated Operating Results
During the first quarter of the consolidated cumulative period, the business environment surrounding ourgroup saw improvements in employment and income conditions. However, due to the depreciation of the
yen and high crude oil prices, consumer spending showed signs of stagnation.
This consolidated fiscal year marks the second year of our "Mid-Term Management Plan 2025," whichconcludes in fiscal year 2025. In terms of performance for the first quarter of the consolidated cumulative
period, the number of continuous transaction customers in the group increased by 26,000 (compared to anincrease of 13,000 in the same period last year), reaching 3,384,000. The number of TLC members
increased by 15,000 (compared to an increase of 17,000 in the same period last year), reaching 1,229,000.
Due to the increase in the number of group customers, net sales were 56,205 million yen (up 4.1% year-onyear), operating profit was 3,319 million yen (up 33.6% year-on-year), ordinary profit was 3,441 million yen(up 31.5% year-on-year), and quarterly net profit attributable to owners of the parent was 1,872 million yen(up 39.9% year-on-year).
Regarding topics for the first quarter of the consolidated cumulative period, in April 2024, we acquired
shares of Fujipro Co., Ltd. (Chigasaki City, Kanagawa Prefecture), which operates an LP gas business,making it a consolidated subsidiary. Additionally, in April of the same year, we established a joint venture, PT
TOKAICOM Mitra Indonesia, with PT Sisnet Mitra Sejahtera, which provides IT-related services in Indonesia,
to expand and develop cloud service-related businesses and cloud talent development businesses in the
country.
Furthermore, as part of our human capital management, from April, we expanded our support systems forchildcare and caregiving for employees. In June, we partially revised the "TOKAI Group Health Management
Guidelines" to improve employee engagement.
The performance by segment is as follows.
(Energy)
Regarding the LP gas business, in addition to making Fujipro Co., Ltd. a consolidated subsidiary, continued
efforts to acquire customers resulted in an increase of 21,000 customers from the end of the previous
consolidated fiscal year, reaching 800,000 customers. Due to the increase in the number of customers, net
sales were 20,571 million yen (up 6.4% year-on-year).
Regarding the city gas business, the number of customers remained at 75,000, similar to the end of theprevious consolidated fiscal year. Additionally, due to the impact of the raw material cost adjustment systemlinked to procurement costs, net sales were 4,098 million yen (down 11.5% year-on-year).
As a result, net sales for this segment were 24,669 million yen (up 2.9% year-on-year), and by reducing
costs, including acquisition costs, operating profit was 993 million yen (up 1,480.0% year-on-year).
(Information and Communications)Regarding the consumer business, we promoted customer acquisition in the ISP and mobile businesses
by collaborating with major mobile carriers. As a result of these measures, broadband customers increased
by 1,000 from the end of the previous consolidated fiscal year, reaching 668,000. However, LIBMO
customers decreased by 1,000 from the end of the previous consolidated fiscal year, reaching 79,000, andnet sales were 5,845 million yen (down 3.1% year-on-year).
Regarding the corporate business, due to the steady progress of carrier services and cloud services, net
sales were 8,149 million yen (up 9.6% year-on-year).
As a result, net sales for this segment were 13,994 million yen (up 3.9% year-on-year), but due to increased
depreciation costs related to network enhancements, operating profit was 829 million yen (down 25.0% year2

TOKAI Holdings Corporation (3167) Financial Results for the Three months Ended June 30, 2024

on-year).
(CATV)
Regarding the CATV business, as a community-based operator, we focused on disseminating local
information and producing programs, while also enhancing content by partnering with major video streaming
providers. Additionally, by actively conducting sales activities in new areas, the number of broadcasting
service customers remained at 919,000, similar to the end of the previous consolidated fiscal year, and thenumber of communication service customers increased by 4,000 from the end of the previous consolidated
fiscal year, reaching 398,000.
As a result, net sales for this segment were 8,978 million yen (up 1.8% year-on-year), and operating profit
was 1,491 million yen (up 2.8% year-on-year).
(Construction, Equipment, and Real Estate)
Regarding the construction equipment and real estate business, building repair work and civil engineering
projects performed well, resulting in net sales for this segment of 5,080 million yen (up 4.7% year-on-year)
and an operating profit of 58 million yen (compared to an operating loss of 40 million yen in the same period
last year).
(Aqua)
Regarding the Aqua business, efforts to expand the customer base through event sales at largecommercial facilities, web acquisition, telemarketing, etc., resulted in an increase of 6,000 customers fromthe end of the previous consolidated fiscal year, reaching 173,000 customers.
As a result, net sales for this segment were 2,285 million yen (up 22.1% year-on-year), and operating profit
was 46 million yen (up 130.6% year-on-year).
(Others)
Among other businesses, regarding the nursing care business, due to an increase in the number of users,
net sales were 355 million yen (up 2.9% year-on-year). Regarding the ship repair business, due to anincrease in the number of repairs, net sales were 309 million yen (up 63.4% year-on-year). Regarding thewedding and event business, due to an increase in general banquets mainly for corporations and variousorganizations, net sales were 289 million yen (up 10.8% year-on-year).
As a result, net sales for this segment were 1,197 million yen (up 20.6% year-on-year), but due to increased
operating expenses, the operating loss was 63 million yen (compared to an operating loss of 37 million yen
in the same period last year).
(2) Explanation of Consolidated Financial Position
1) Assets, Liabilities, and Net Assets
Total assets at the end of the first quarter of the consolidated accounting period were 206,246 million
yen, an increase of 945 million yen compared to the end of the previous consolidated fiscal year. This was
mainly due to a decrease of 5,032 million yen in notes receivable, accounts receivable, and contract assets
due to seasonal factors, while goodwill increased by 2,058 million yen, "other" investments and otherassets increased by 1,344 million yen due to an increase in investment securities, cash and deposits
increased by 901 million yen, work in progress increased by 875 million yen, and merchandise and finishedgoods increased by 563 million yen.
Total liabilities were 114,171 million yen, an increase of 171 million yen compared to the end of theprevious consolidated fiscal year. This was mainly due to a decrease of 4,461 million yen in notes payable
and accounts payable, a decrease of 2,252 million yen in long-term borrowings, and a decrease of 1,296
3

TOKAI Holdings Corporation (3167) Financial Results for the Three months Ended June 30, 2024

million yen in accrued corporate taxes, while short-term borrowings increased by 8,090 million yen.
Total net assets were 92,074 million yen, an increase of 774 million yen compared to the end of theprevious consolidated fiscal year. This was mainly due to the payment of 2,233 million yen in dividends
from retained earnings, while recording 1,872 million yen in quarterly net profit attributable to owners of theparent, as well as increases of 568 million yen in valuation difference on available-for-sale securities and462 million yen in deferred hedge gains.
2) Cash Flows
Cash and cash equivalents (hereinafter referred to as "funds") at the end of the first quarter of theconsolidated accounting period increased by 837 million yen from the end of the previous consolidated
fiscal year, reaching 6,442 million yen.
The status of each cash flow during the first quarter of the consolidated cumulative period and theirfactors are as follows.
(Cash flows from operating activities)
Cash flows from operating activities resulted in an increase of 5,507 million yen in funds (down 2,906
million yen year-on-year). This was due to a decrease in funds from the payment of corporate taxes anda decrease in accounts payable, while funds increased due to factors such as pre-tax quarterly net profit,a decrease in accounts receivable, and non-cash items such as depreciation.
(Cash flows from investing activities)
Cash flows from investing activities resulted in a decrease of 6,701 million yen in funds (down 2,448
million yen year-on-year). This was due to expenditures for the acquisition of tangible and intangible fixed
assets, as well as the acquisition of subsidiary shares involving changes in the scope of consolidation.
(Cash flows from financing activities)
Cash flows from financing activities resulted in an increase of 2,032 million yen in funds (up 5,710
million yen year-on-year). This was due to the repayment of borrowings and lease obligations, and thepayment of dividends, while also raising funds through borrowings.
Additionally, cash flows from financing activities increased significantly compared to the previous period,
due to an increase in short-term borrowings.
(3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information
The performance for the first quarter of the consolidated cumulative period is generally progressing asplanned, and there are no changes to the full-year consolidated earnings forecast for the fiscal year ending
March 2025, which was announced on May 9, 2024.
Please note that the earnings forecast is based on information available at this time, and actual results may
differ from the forecasted figures due to various factors in the future.

4

TOKAI Holdings Corporation (3167) Financial Results for the Three months Ended June 30, 2024

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets
Fiscal Year Ended
March 31, 2024
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade and contract assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Total assets

5(Millions of yen)Three-months Ended
June 30, 2024

5,758

6,659

*2 30,241*2 25,209

4,627
959
1,530
12,080-478
54,719

5,190
1,835
1,485
12,234-474
52,14037,345
26,86924,90925,173
114,298

37,186
26,78925,17525,340114,490

5,422
4,671
10,093

7,480
4,609
12,0906,448
20,017-280
26,185150,5783
205,301

6,478
21,362-318
27,521
154,1022
206,246

TOKAI Holdings Corporation (3167) Financial Results for the Three months Ended June 30, 2024

Fiscal Year Ended
March 31, 2024
Liabilities
Current liabilities
Notes and accounts payable–trade
Short-term loans payable
Income taxes payable
Other provision
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
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurement of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

6(Millions of yen)Three-months Ended
June 30, 2024

*2 19,825*2 15,364

14,1903,056
1,796
22,891
61,761

22,2801,759
124
24,281
63,81032,105398
1,523
18,211
52,238114,000

29,852398
1,578
18,53250,360114,171

14,00025,57042,804-2,562
79,812

14,00025,57042,443-2,56279,452

3,363
1,143
939
3,773
9,221
50
2,216
91,300205,301

3,932
1,605
1,049
3,672
10,25948
2,313
92,074
206,246

TOKAI Holdings Corporation (3167) Financial Results for the Three months Ended June 30, 2024

(2) Quarterly Consolidated Statements of Income, Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Three-months Ended June 30, 2024)

Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating profit
Interest income
Dividend income
Commission fee
Other
Total non-operating profit
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Recurring profit
Extraordinary income
Gain on sales of non-current assets
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 valuation of investment securities
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

Three Months Ended
June 30, 2023
(April 1, 2023 toJune 30, 2023)
53,971
33,62020,35017,8662,484(Millions of yen)Three Months Ended
June 30, 2024
(April 1, 2024 toJune 30, 2024)
56,20534,041
22,164
18,844
3,319

1
111
7
100
222

5
146
10
80
242

73
15
88
2,617

91
29
120
3,441

3
－
14
2
20

15
14
8
2
40

－
254
－
254
2,383
1,388
-382
1,006
1,377
38
1,338

0
275
16
292
3,188
1,568
-287
1,280
1,908
35
1,872

TOKAI Holdings Corporation (3167) Financial Results for the Three months Ended June 30, 2024

(Consolidated Statements of Comprehensive Income)(Three-months Ended June 30, 2024)

Quarterly net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred Gains or Losses on Hedges
Foreign currency translation adjustment
Remeasurement of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted forusing the equity method
Total other comprehensive income
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income attributable to owners of theparentQuarterly comprehensive income attributable to non-controllinginterests

8

Three Months Ended
June 30, 2023
(April 1, 2023 toJune 30, 2023)
1,377(Millions of yen)Three Months Ended
June 30, 2024
(April 1, 2024 toJune 30, 2024)
1,908

499
2
-79

568
462
-0
-101

117

110

539
1,916

1,038
2,947

1,877

2,910

39

36

TOKAI Holdings Corporation (3167) Financial Results for the Three months Ended June 30, 2024

(3) Quarterly Consolidated Statements of Cash Flows
Three Months
Ended
June 30, 2023
(April 1, 2023 toJune 30, 2023)
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 accounts payable
Increase (decrease) in accrued expenses
Increase (decrease) in accrued liabilities
Other
Subtotal
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Interest and dividends received
Purchase of securities
Proceeds from sale of securities
Purchase of property, plant and equipment and intangible assets
Proceeds from sale of property, plant and equipment and intangible assets
Purchase of Shares of Subsidiaries Resulting in Change in Scope ofConsolidation
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(Millions of yen)Three Months
Ended
June 30, 2024
(April 1, 2024 toJune 30, 2024)

2,383
3,893
244
-1,490
-91
-113
－
73
-3
－
254
6,952
-115
-3,821
-556
3,168
142
10,919-2,505
8,414

3,188
4,044
285
-1,554
-148
-152
-14
91
-14
16
275
5,753
-1,309-4,549
-914
3,431
-152
8,276
-2,768
5,507

128
-2
－
-4,616
290

161
-2
28
-4,716217－-2,5381-53-4,252

1
146-6,701-75
2,309-1,210-2,671-0-2,020-9-3,6784487
4,028*1 4,516-93
8,325-1,304-2,796-0-2,158
61
2,032
-0
837
5,604
*1 6,442

TOKAI Holdings Corporation (3167) Financial Results for the Three months Ended June 30, 2024

(4) Notes on Quarterly Consolidated Financial Statements(Notes on the Financial Reporting Framework)
The quarterly consolidated financial statements are prepared in accordance with Article 4, Paragraph 1 of the
Preparation Standards for Quarterly Financial Statements, etc. of the Tokyo Stock Exchange, and the accounting
standards for quarterly financial statements generally accepted in Japan.
(Notes on Going Concern Assumptions)Not applicable(Changes in the Scope of Consolidation or Application of the Equity Method)(Significant Changes in the Scope of Consolidation)
During the first quarter of the current consolidated fiscal period, we have included Fujipro Co., Ltd. and its
subsidiary Gatt Co., Ltd. in the scope of consolidation due to the acquisition of shares. Additionally, we haveincluded PT TOKAICOM Mitra Indonesia in the scope of consolidation due to its new establishment.
(Notes on Changes in Accounting Policies)(Application of "Accounting Standard for Corporate Income Taxes, Inhabitant Taxes, and Business Taxes")
We have applied the "Accounting Standard for Corporate Income Taxes, Inhabitant Taxes, and Business Taxes"(Accounting Standards Board of Japan (ASBJ) Statement No. 27, October 28, 2022, hereinafter referred to as the"2022 Revised Accounting Standard") from the beginning of the first quarter of the current consolidated fiscal
period.
Regarding the amendments related to the classification of corporate taxes, etc. (taxation on other comprehensive
income), we are following the transitional treatment stipulated in the proviso of Paragraph 20-3 of the 2022
Revised Accounting Standard and the transitional treatment stipulated in Paragraph 65-2(2) of the"Implementation Guidance on Accounting Standard for Tax Effect Accounting" (ASBJ Guidance No. 28, October28, 2022, hereinafter referred to as the "2022 Revised Implementation Guidance"). The application of thisaccounting standard has no impact on the quarterly consolidated financial statements.
Furthermore, regarding the amendments related to the review of the treatment in the consolidated financial
statements of gains and losses arising from the sale of subsidiary shares, etc., among consolidated companies,
we have applied the 2022 Revised Implementation Guidance from the beginning of the first quarter of the current
consolidated fiscal period. The application of this accounting standard has no impact on the quarterly consolidated
financial statements.
(Additional Information)(Board Benefit Trust (BBT))(1.) Overview of the Transaction
At the Board of Directors meeting held on May 10, 2016, the Company resolved to introduce a new stockcompensation plan, the "Board Benefit Trust (BBT)" (hereinafter referred to as "the Plan"), for the Company's
directors, executive officers, and some directors of the Company's subsidiaries (excluding outside directors,
hereinafter referred to as "officers"). This was approved as officer compensation at the 5th Annual General
Meeting of Shareholders held on June 24, 2016.
Under the Plan, the Company's shares are acquired through a trust using funds contributed by the Company.
These shares, along with cash equivalent to the market value of the Company's shares at the time of the officer's
resignation (hereinafter referred to as "the Company's shares, etc."), are provided to the officers through the trustin accordance with the regulations for officer stock compensation established by the Company and its subsidiaries
covered by the Plan. In principle, the timing for officers to receive the Company's shares, etc. is set at the time of
their resignation.
This transaction is accounted for using the gross method in accordance with the "Practical Solution on
Transactions of Delivering the Company's Own Stock to Employees, etc. through Trusts" (Practical Issues Task
Force No. 30, March 26, 2015).
(2.) Company's Shares Remaining in the Trust
The Company's shares remaining in the trust are recorded as treasury stock in the net assets section at their bookvalue in the trust (excluding incidental expenses). The book value of these treasury shares was 559 million yen at

10

TOKAI Holdings Corporation (3167) Financial Results for the Three months Ended June 30, 2024

the end of the previous consolidated fiscal year and 559 million yen at the end of the first quarter of the current
consolidated fiscal period. The number of these treasury shares was 730,500 shares at the end of the previous
consolidated fiscal year and 730,500 shares at the end of the first quarter of the current consolidated fiscal period.
(Notes on Significant Changes in Shareholders’ Equity)
Not applicable(Notes on the Quarterly Consolidated Balance Sheet)1.

Contingent Liabilities(1) Guarantee Reservations
Previous Consolidated Fiscal
Year (March 31, 2024)

Current Q1 Consolidated Fiscal
Period (June 30, 2024)

95 million yen

84 million yen(Borrowing Liabilities)
TOKAI Group Mutual Aid
Association(2) Repurchase Obligations Due to Securitization of Receivables

Repurchase Obligations Due toSecuritization of Receivables:

Previous Consolidated Fiscal

Current Q1 Consolidated Fiscal

Year (March 31, 2024)

Period (June 30, 2024)

1,430 million yen

1,179 million yen*2. Notes Maturing at the End of the Quarterly Consolidated Fiscal Period
For the accounting treatment of notes maturing at the end of the quarterly consolidated fiscal period, settlement isprocessed on the note exchange date. Since the end of the current quarterly consolidated fiscal period was a holiday
for financial institutions, the following notes maturing at the end of the next quarterly consolidated fiscal period areincluded in the balance at the end of the current quarterly consolidated fiscal period.
Previous Consolidated Fiscal
Year (March 31, 2024)

Current Q1 Consolidated Fiscal
Period (June 30, 2024)

Notes Receivable

122 million yen

132 million yen

Notes Payable

100 million yen

87 million yen(Notes on the Quarterly Consolidated Statement of Cash Flows)*1. Relationship Between the Quarterly End Balance of Cash and Cash Equivalents and the Amounts Listed in the
Quarterly Consolidated Balance Sheet
Previous Q1 Consolidated
Cumulative Period(April 1, 2023 - June 30, 2023)

Current Q1 Consolidated
Cumulative Period(April 1, 2024 - June 30, 2024)

Cash and Deposits Account4,842 million yen

6,659 million yen

Time Deposits with Deposit Periods
Exceeding Three Months-325 million yen-217 million yen

Cash and Cash Equivalents

4,516 million yen

6,442 million yen

11TOKAI Holdings Corporation (3167) Financial Results for the Three months Ended June 30, 2024

(Notes on Shareholders' Equity)
I. Previous Q1 Consolidated Cumulative Period (April 1, 2023 - June 30, 2023)
Amount of Dividends Paid
Resolution
Type of
SharesJune 28,2023, Annual
GeneralMeeting of
Shareholders

Total
Amount ofDividends(million yen)
2,101

CommonStockDividend per
Share (yen)Record Date

Effective
Date

Source ofDividends

16.00

March 31,2023

June 29,2023

Retained
Earnings(Note) The total amount of dividends for common stock includes 12 million yen of dividends related to theCompany's shares owned by Custody Bank of Japan, Ltd. (Trust E Account).
II. Current Q1 Consolidated Cumulative Period (April 1, 2024 - June 30, 2024)
Amount of Dividends Paid
Resolution
Type of
Total
Dividend per Record Date
SharesAmount of
Share (yen)Dividends(million yen)
June 26,
Common2,233
17.00
March 31,2024, Annual Stock
2024
GeneralMeeting of
Shareholders

Effective
Date

Source ofDividends

June 27,2024

Retained
Earnings(Note) The total amount of dividends for common stock includes 12 million yen of dividends related to theCompany's shares owned by Custody Bank of Japan, Ltd. (Trust E Account).
(Segment Information, etc.)[Segment Information]
I. Three-months Ended June 30, 2023 (April 1, 2023 to June 30, 2023 )1. Information on net sales and profit or loss by reportable segment(Millions of yen)
Reportable segments
EnergyConstruction,
Other1
Information andEquipment,
CATV
Aqua Subtotal
Communications
and Real
EstateAmount inquarterly
Total Adjustments2 consolidated
statement ofincome3

Net sales
Sales toexternal
23,966customers
Intra-segment
sales and42transfer

13,468

8,820

4,852

1,871

52,979992 53,971

1,561

106

214

6

1,931

85

2,016

Subtotal－

53,971-2,016－24,00815,029 8,926
5,066 1,878 54,910 1,077 55,987-2,01653,971
Segment profit
62
1,107 1,451
-40
20
2,601
-37 2,564-80
2,484(loss)(Notes) 1. The “Others” category is a business segment not included in the reportable segments. This category includes
businesses such as weddings, ship repair, insurance, and nursing care.
2. Adjustments to segment profit (loss) are eliminations due to intra-segment transactions.
3. Segment profit (loss) is adjusted to match operating profit in the quarterly consolidated statements of income.
2. Information on Impairment Losses on Fixed Assets, Goodwill, etc. by Reportable Segment(Significant Impairment Losses on Fixed Assets)
Not applicable(Significant Changes in the Amount of Goodwill)

12

TOKAI Holdings Corporation (3167) Financial Results for the Three months Ended June 30, 2024

Not applicable(Significant Gains from Negative Goodwill)
Not applicable
II. Three-months Ended June 30, 2024 (April 1, 2024 to June 30, 2024)
1. Information on net sales and profit or loss by reportable segment(Millions of yen)
Reportable segments
Construction,
Other1
Information andEquipment,
EnergyAqua Subtotal
CATV
and Real
Communications
EstateAmount inquarterly
Total Adjustments2 consolidated
statement ofincome3

Net sales
Sales toexternalcustomers
Intrasegment
sales andtransfer

24,66913,994

8,978

5,080

44

1,502

80

235

2,285 55,008

5

1,867

1,197 56,205

28

1,896

－

56,205-1,896－

Subtotal
24,714
15,496 9,059
5,315 2,290 56,876 1,225 58,102-1,89656,205
Segment profit
993
829 1,491
58
46 3,420-63 3,356-37
3,319(loss)(Notes) 1. The “Others” category is a business segment not included in the reportable segments. This category includes
businesses such as weddings, ship repair, insurance, and nursing care.
2. Adjustments to segment profit (loss) are eliminations due to intra-segment transactions.
3. Segment profit (loss) is adjusted to match operating profit in the quarterly consolidated statements of income.
2. Information on Impairment Losses on Fixed Assets, Goodwill, etc. by Reportable Segment(Significant Impairment Losses on Fixed Assets)
Not applicable(Significant Changes in the Amount of Goodwill)
Not applicable(Significant Gains from Negative Goodwill)
Not applicable

13

TOKAI Holdings Corporation (3167) Financial Results for the Three months Ended June 30, 2024

(Note on revenue recognition)
Information on revenue breakdown from contracts with customers
I. Consolidated cumulative period for the previous first quarter (from April 1, 2023 to June 30, 2023)(Unit: million yen)
Reporting Segment
EnergyInformation and

CATVCommunication

OthersConstruction,

Aqua

Total

Total

(Note 1)Equipment,
and Real
Estate13,780－－－－13,780－13,780Industrial Gas

5,419

－

－

－

－

5,419

－

5,419

City Gas

4,634

－

－

－

－

4,634

－

4,634

－

6,034

－

－

－

6,034

－

6,034

－

9,011

－

－

－

9,011

－

9,011

CATV

－

－

8,762

－

－

8,762

－

8,762

Building and

－

－

－

3,059

－

3,059

－

3,059

Real Estate
Sales andManagement

－

－

－

1,487

－

1,487

－

1,487

Civil

－

－

－

376

－

376

－

376

Drinking Water

－

－

－

－

2,093

2,093

－

2,093

Wedding
Events

－

－

－

－

－

－

282

282

Ship Repair

－

－

－

－

－

－

189

189

Care

－

－

－

－

－

－

345

345

1,012

－

225

169

－

1,407

259

1,666

Household andCommercial LP
Gas

Broadband
Communication
SystemIntegration

Facility
Construction

Engineering

OthersInternal Sales-880-1,578

-167

-240

-221

-3,088-85-3,174External Sales
to Customers

23,966

13,468

8,820

4,852

1,871

52,979992

53,971(Note) 1. "Others" is a business segment not included in the reporting segment and includes wedding event business,
ship repair business, care business, insurance business, etc.
2. In the revenue in "Energy," subsidies received for the "Electricity and Gas Price Fluctuation Mitigation
Measures" are included, with 40 million yen for "Household and Commercial LP Gas," 103 million yen for"Industrial Gas," and 777 million yen for "City Gas."
3. As revenues other than those arising from contracts with customers are not significant, the presentation ofrevenue breakdown from contracts with customers is not shown.

14

TOKAI Holdings Corporation (3167) Financial Results for the Three months Ended June 30, 2024

II. Consolidated cumulative period for the current first quarter (from April 1, 2024 to June 30, 2024)(Unit: million yen)
Reporting Segment
EnergyInformation andCommunication

CATV

OthersConstruction,
Equipment,

Aqua

Total

Total

(Note 1)and Real
Estate14,807－－－－

14,807－

14,807

5,767

－

－

－

－

5,767

－

5,767

4,103

－

－

－

－

4,103

－

4,103

－

5,845

－

－

－

5,845

－

5,845

－

9,680

－

－

－

9,680

－

9,680

CATV

－

－

8,926

－

－

8,926

－

8,926

Building and

－

－

－

3,107

－

3,107

－

3,107

－

－

－

1,574

－

1,574

－

1,574

Civil
Engineering

－

－

－

452

－

452

－

452

Drinking Water

－

－

－

－

2,513

2,513

－

2,513

Wedding
Events

－

－

－

－

－

－

310

310

Ship Repair

－

－

－

－

－

－

309

309

Household andCommercial LP
Gas
Industrial Gas
City Gas
Broadband
Communication
SystemIntegration

Facility
Construction
Real Estate
Sales andManagement

－

－

－

－

－

－

355

355

Others

1,005

－

199

205

－

1,410

249

1,659

Internal Sales-1,012-1,531

-147

-259

-228

-3,179-28-3,207External Sales
to Customers

24,66913,994

8,978

5,080

2,285

55,008

1,197

56,205

Care(Note) 1. "Others" is a business segment not included in the reporting segment and includes wedding event business,
ship repair business, care business, insurance business, etc.
2. In the revenue in "Energy," subsidies received for the "Electricity and Gas Price Fluctuation Mitigation
Measures" are included, with 117 million yen for "Household and Commercial LP Gas," 26 million yen for"Industrial Gas," and 214 million yen for "City Gas."
3. As revenues other than those arising from contracts with customers are not significant, the presentation ofrevenue breakdown from contracts with customers is not shown.

15

TOKAI Holdings Corporation (3167) Financial Results for the Three months Ended June 30, 2024

(Note on per share information)
The per share quarterly net profit and the basis for calculation, as well as the per share quarterly net profit and thebasis for calculation after adjustment for potential shares, are as follows:
Cumulative period for the previous
first quarter (from April 1, 2023 to

Cumulative period for the current
first quarter (from April 1, 2024 toJune 30, 2023)

June 30, 2024)(1) Per share quarterly net profit

10.25 yen

14.33 yen

1,338

1,872

－

－

1,338

1,872

130,574

130,628－

14.33 yen

－

－

－

43

(Basis for calculation)
Quarterly net profit attributable toparent company shareholders(in million yen)Amount not attributable to commonshareholders (in million yen)
Quarterly net profit attributable toparent company shareholders forcommon shares (in million yen)
Average number of commonshares during the period(in thousands)(2) Per share quarterly net profit
after adjustment for potential shares(Basis for calculation)
Adjustment amount for quarterly net
profit attributable to parent company
shareholders (in million yen)
Increase in common shares(in thousands)－

Due to the absence of dilution
effects, the calculation of per share－quarterly net profit after adjustment
for potential shares does notinclude potential shares that weresignificant during the previous fiscal
year-end.
(Note) 1. The average number of common shares during the period for calculating per share quarterly net profit
deducts the shares owned by Japan Custody Bank (Trust E Account) (782,100 shares for the previous firstquarter cumulative period and 730,500 shares for the current first quarter cumulative period).
2. The per share quarterly net profit after adjustment for potential shares for the previous first quarter
cumulative period is not provided as there were no potential shares with dilution effects.

16