Consolidated Financial Results for the Third Quarter of the
Fiscal Year Ending March 31, 2022 [Japanese GAAP]
January 27, 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:
Kuniyoshi Muramatsu, Managing Executive Officer, General Manager of Administrative
Headquarters
Telephone: +81-54-275-0007
Scheduled date of filing quarterly report:
February 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 Nine-months Ended December 31, 2021
(April 1, 2021 to December 31, 2021)(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

Nine-months Ended
9,248
9,324
-6.1
4,634
149,420
6.9-6.6
December 31, 2021
Nine months Ended
9,901
9,929
4.8
5,936
139,792-1.2
6.7
December 31, 2020
(Note) Comprehensive income: 3,871 million yen in the Nine-months Ended December 31, 2021 (-54.7%)
8,538 million yen in the Nine months Ended December 31, 2020 (53.0%)

%

-21.9
16.3

Quarterly Net Income per Share(Diluted)

Quarterly Net Income per Share
Yen

Yen

Nine-months Ended December 31, 2021

35.38

-

Nine months Ended December 31, 2020

45.33

-

(2) Consolidated Financial Position
Total Assets

Net Assets

Millions of yen

Millions of yen

Equity Ratio%

Nine-months Ended December 31, 2021

181,450

75,797

40.9

Year ended March 31, 2021

178,974

76,056

41.6(Reference) Equity: 74,129 million yen for the Nine-months Ended December 31, 2021
74,510 million yen for the year ended March 31, 2021

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, 2021

―

14.00

―

16.00

30.00

Year ending March 31, 2022

―

15.00
―

15.00

30.00

Year ending March 31, 2022
(Forecast)(Note) Revisions to most recently announced dividend forecasts: No

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

Sales
Millions ofyen%Operating Profit

Recurring Profit

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

%

Yen

0.1

8,830

0.2

67.42

%

Year ending March
207,000
5.2
15,2400.1
15,32031, 2022(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): No3) Changes in accounting estimates: No4) Restatements: No(Note) For details, see “2. Quarterly Consolidated Financial Statements and Main Notes (4) Notes on Quarterly Consolidated Financial
Statements (Changes in Accounting Policy)” on page 10 of the Attachment.
(4) Number of shares issued (common stock)
1) Shares issued at the end of each period (including treasury stock):

Q3 FY3/2022

139,679,977 shares FY3/2021

139,679,977 shares

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

Q3 FY3/2022

8,688,410 shares FY3/2021

8,713,335 shares

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

Q3 FY3/2022

130,980,704 shares Q3 FY3/2021

130,962,791 shares(Note) Board benefit trust shares(BBT) is included in the number of year-end treasury stock.(365,900 stocks at Q3 FY3/2023, 391,300
stocks at FY3/2021) 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 (377,076 shares for the Nine-months Ended December 31,
2021; 395,436 shares for the Nine months Ended December 31, 2020).

* 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.

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2021

[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(Notes on Significant Changes in Shareholders' Equity) ····························································· 10(Changes in Accounting Policies) ·························································································· 10(Additional information)········································································································ 10(Segment Information） ······································································································ 11

1

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2021

1.

Qualitative Information on Financial Results for the Period Under Review(1) Explanation of Consolidated Operating Results
COVID-19 continued to affect the Japanese economy during the first nine months under review as it had donein the previous fiscal year. There were signs of a recovery in social and economic activities, however, such as thelifting of a state of emergency declaration at the end of September 2021. Nevertheless, the future of the economy
remained uncertain due to factors including the spread from December 2021 of the extremely contagious
Omicron variant of the coronavirus.
In this environment, the Group announced a new medium-term management plan, Innovation Plan 2024
“Design the Future Life” (IP24), which covers the period up to and including the fiscal year ending March 31,
2025, in May 2021. IP24 has five key messages: (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.
The first year of IP24 is the fiscal year for laying the foundation for achieving the goals laid out by these key
messages. The Group has been working on initiatives to achieve growth in existing businesses and promote
M&A activities. The Group has also been working to implement a new green growth strategy to achieve carbon
neutrality and reform workstyles.
In its operating activities, the Group actively sought to gain customers, while thoroughly taking steps to prevent
infection. These activities resulted in the number of continuing customers rising to 3,142,000 as of December 31,
2021, an increase of 43,000 from the end of the previous fiscal year. The number of TLC Membership Service
members rose 87,000, to 1,066,000.
In the first nine months ended December 31, 2021, the Group posted net sales of 149,420 million yen (up6.9％ year on year), a record high. Operating profit came to 9,248 million yen (down 6.6%), chiefly due to anincrease in expense for gaining customers. Recurring profit and net income attributable to owners of the parent
were 9,324 million yen (down 6.1% year on year) and 4,634 million yen (down 21.9％ year on year).
In April 2021, the Company established TOKAI Venture Capital & Incubation Corporation (Shizuoka, Shizuoka
Prefecture). The company will help develop TLC through synergies with the existing businesses and the creationof new life-related services.
In the same month, the Company acquired shares in Marco Polo inc. (Toyota, Aichi), which engages in theremodeling of condominiums, in the Construction, Equipment, and Real Estate segment, and made it aconsolidated subsidiary and acquired shares also in QUERY Co. Ltd. (Toshima-ku, Tokyo), which engages insystem development, in the Information and Communications segment, making it a consolidated subsidiary.
The Company also set up a new LP gas sales base in Kumamoto City, Kumamoto Prefecture, in October
2021.
Performance by segment is indicated below.
(Energy)In the LP gas business, the number of customers increased 24,000 from the end of the previous fiscal year, to705,000, reflecting sustained Group efforts to attract customers. Net sales stood at 49,969 million yen (up10.7% year on year), chiefly due to a rise in selling prices linked to purchase prices.
In the city gas business, the number of customers grew 6,000 from the end of the previous fiscal year, to
68,000. Net sales for the business rose 5.4% year on year, to 8,747 million yen mainly due to an increase in thesales volume of gas for industrial use and the effects of the gas rate adjustment system.
Net sales in this segment stood at 58,717 million yen (up 9.9%). Operating profit came to 2,282 million yen(down 23.8%), reflecting an increase in expense for gaining customers, among other factors.

2

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2021

(Construction, Equipment, and Real Estate)
In the Construction, Equipment, and Real Estate segment, net sales climbed 28.4% year on year, to 19,025
million yen and operating profit rose 3.1% year on year, to 555 million yen, reflecting an increase in orders forconstruction work and the like, in addition to a rise in the number of Group companies through M&A activities.
(CATV)In the CATV business, the Group focused on providing local information and the production of programs as acommunity-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 andsteady sales activities based on actual conditions in each business area. The broadcasting services customer
count rose to 885,000, an increase of 10,000 from the end of the previous fiscal year. The communications
services customer count increased to 339,000, a rise of 16,000 from the end of the previous fiscal year.
Meanwhile, net sales in this segment decreased 2.9% year on year, to 24,265 million yen as a result of theapplication of the Accounting Standard for Revenue Recognition from the first three months of the current fiscal
year, which caused a change in the way certain transactions are presented. Meanwhile, operating profit in thesegment rose 8.1% year on year, to 4,044 million yen due to an increase in the number of customers.
(Information and Communications)
In the business for consumers, the Group expanded its ISP lineup in collaboration with major
telecommunications carriers. In the mobile business, the Group advanced initiatives for customer acquisition byappropriately reviewing its service lineup and introducing package plans with fixed lines. Reflecting effects thosemeasures produced, the number of ISP customers fell 7,000 from the end of the previous fiscal year, to 725,000,
and the number of LIBMO customers rose 2,000 from the same point, to 55,000. Net sales in this segment
declined 7.6% year on year, to 18,303 million yen, in spite of efforts the Group made to apply the brakes to a net
customer decrease through steady sales channel expansion.
In the business for corporate clients, net sales came to 19,903 million yen (up 10.4%), mainly reflecting steady
growth in cloud services and an increase in the contract development projects, which are currently booming.
Net sales in this segment were 38,206 million yen (up 1.0%), and operating profit was 2,473 million yen (up15.0%).
(Aqua)In the Aqua (bottled drinking water delivery) business, events at large retail facilities, etc. performed well. The
Group also carried out non-face-to-face sales activities, including telemarketing. The number of customers
increased 3,000 from the end of the previous fiscal year, to 166,000.
Net sales in this segment stood at 5,811 million yen (up 0.6%). Operating profit came to 67 million yen (down
79.7%), reflecting an increase in expense for gaining customers, among other factors.
(Others)
Net sales in the nursing care business stood at 1,006 million yen (up 1.1%), reflecting an increase in thenumber of users. Net sales in the shipbuilding business rose to 1,212 million yen (up 22.2%), due to an increasein the number of ships that the Group repaired. Net sales in the bridal events business rose to 515 million yen(up 60,0%), reflecting a slight recovery in weddings and meetings.
Overall, net sales in this segment came to 3,395 million yen (up 15.7%), and the operating loss was 111
million yen (an operating loss of 120 million yen in the same period of the previous fiscal year).
(2) Explanation of Consolidated Financial Position
1) Assets, Liabilities, and Net Assets
Total assets at the end of the first nine months under review stood at 181,450 million yen, an increase of3

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2021

2,476 million yen from the end of the previous fiscal year. The increase was mainly attributable to growths of
1,774 million yen in property, plant and equipment, 765 million yen in merchandise and finished goods, 767
million yen in work in process and 685 million yen in intangible assets, which offset a decrease of 1,408 million
yen in notes and accounts receivable - trade, and contract assets.
Total liabilities came to 105,652 million yen, an increase of 2,734 million yen from the end of the previous
fiscal year. The increase was chiefly due to a rise of 8,528 million yen in short-term loans payable, which offset
decreases of 2,307 million yen in income taxes payable, 1,862 million yen in other provisions in current liabilities,
and 1,548 million yen in long-term loans payable.
Total net assets were 75,797 million yen, a decrease of 258 million yen from the end of the previous fiscal
year. The decrease primarily reflected a fall of 819 million yen in deferred gains on hedges, in addition to 4,072
million yen in dividends of surplus paid, which offset 4,634 million yen in net income attributable to owners of
the parent.
2) Cash Flows
Cash and cash equivalents (“cash”) as of December 31, 2021 were 4,826 million yen, a decrease of 309
million yen from the end of the previous fiscal year.
Cash flows in the first nine months under review and major contributing factors are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was 12,305 million yen (7,097 million yen less year on year). Cashinflows were primarily attributable to net income before income taxes, a decrease in notes and accounts
payable, and depreciation, a non-cash item, which offset income taxes paid and a rise in inventories among
other cash outflows.
Cash flows from investing activities
Net cash used in investing activities 11,667 million yen (3,005 million yen higher year on year). Cash outflows
were attributable primarily to the purchase of tangible and intangible assets and the purchase of shares ofsubsidiaries resulting in a change in scope of consideration.
(Cash flows from financing activities)
Net cash used in financing activities was 945 million yen (2,917 million yen higher year on year). Loanspayable and other cash inflows were more than offset by cash outflows, including repayment of loans payable,
repayments of lease obligations and payment of cash dividends.
Net cash used in financing activities increased substantially year on year mainly due to growth in short-termloans payable.
(3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information
Results in the first nine months of the fiscal year under review were roughly as forecast. The earnings
forecasts for the fiscal year ending March 31, 2022 announced on May 11, 2021 remain unchanged.
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

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2021

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets
Fiscal Year Ended
March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable–trade
Merchandise and finished goods
Notes and accounts receivable - trade and contract assets
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)
Nine Months Ended
December 31, 2021

5,577
26,323
－
3,479
900
1,194
9,860
-403
46,932

5,121－
24,914
4,244
1,668
1,344
10,484-427
47,34934,50824,61424,054
18,622
101,800

35,011
24,25824,29320,011
103,575

5,258
5,428
10,687

6,162
5,210
11,373

3,150
16,675-273
19,552132,0410178,974

3,642
15,845-335
19,153
134,1010
181,450

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2021

Fiscal Year Ended
March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable–trade
Short-term loans payable
Current portion of bonds
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 (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)
Nine Months Ended
December 31, 2021

17,226
12,061
112
2,764
1,941
22,90457,00917,342
20,58963456
79
21,60860,13829,955276
962
14,71345,908102,917

28,407235
1,048
15,82245,514
105,652

14,00025,542
31,563-2,21968,887

14,00025,552
32,060-2,21369,398

1,216
1,918
33
2,454
5,623
－
1,545
76,056
178,974

842
1,099
172
2,616
4,730
2
1,666
75,797
181,450

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2021

(2) Quarterly Consolidated Statements of Income, Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Nine Months Ended December 31, 2021)

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
Subsidy income
Gain on reversal of subscription rights to shares
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Loss on sales of investment securities
Loss on valuation of investment securities
Anniversary project cost
Other
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

Nine Months Ended
December 31, 2020
(April 1, 2020 to
December 31, 2020)
139,792
80,14759,64549,743
9,901(Millions of yen)
Nine Months Ended
December 31, 2021
(April 1, 2021 to
December 31, 2021)
149,420
89,32160,09950,850
9,248

8
181
22
246
459

8
246
24
240
519

221
137
73
432
9,929

202
178
63
444
9,324

56
295
71
66
0
490

5
116
63
－
97
283

0
467
0
148
643
9,775
2,591
1,123
3,715
6,060
124
5,936

0
542
0
－
244
496
1,283
8,323
2,725
835
3,560
4,763
128
4,634

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2021

(Consolidated Statements of Comprehensive Income)(Nine Months Ended December 31, 2020)

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 owners of
the parent
Quarterly comprehensive income attributable to noncontrolling interests

8

Nine Months Ended
December 31, 2020
(April 1, 2020 to
December 31, 2020)
6,060(Millions of yen)
Nine Months Ended
December 31, 2021
(April 1, 2021 to
December 31, 2021)
4,763

558
2,114
-2
-40

-373
-819
-4
161

-151

144

2,478
8,538

-891
3,871

8,415

3,741

123

129

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2021

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)
Nine Months Ended Nine Months Ended
December 31, 2020 December 31, 2021
(April 1, 2020 to(April 1, 2021 to
December 31, 2020) December 31, 2021)
Cash flows from operating activities
Quarterly net income before income taxes
Depreciation
Amortization of goodwill
Impairment loss
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(Gain) loss on valuation of investment securities
Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable – trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable – trade
Other
Subtotal
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Interest and dividend income received
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
Purchase of shares of subsidiaries and associates
Payments for transfer of business
Payments of loans receivableCollection 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
Proceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds
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

9,775
10,957909-1,161
-35
-190
0
221
-56
148
467
4,229
-1,176-836
863
24,115-4,712
19,402

8,323
11,193
760
-161
-254
-97
202
-5
－
542
1,261
-954
21
-1
-2,655
18,174-5,86812,305226-1270-9,965
300

288
-62
242
-9,888233-1,090-2,664-3,013-1,630－39
402-14,672

-45
－
-571
11
788
-11,667-224-325-3,02910,736-7,271-69-0-3,671-6-3,863
-0
866
4,046
4,912

-207
7,995
-3,185
6,100-7,524-49-0-4,065
-8
-945
-1
-309
5,136
4,826

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2021

(4) Notes on Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Notes on Significant Changes in Shareholders’ Equity)
Not applicable.

(Change in accounting policy)(Application of Accounting Standard for Revenue Recognition)
The Company adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020,
hereinafter referred to as the "Accounting Standard for Revenue Recognition") from the beginning of the first quarter ofthe current fiscal year and recognized revenue when control of promised goods or services is transferred to customers
in an amount that is expected to be received in exchange for those goods or services.
With regard to the application of the revenue recognition accounting standard, etc., in accordance with the transitional
treatment stipulated in the provisions of paragraph 84 of the Accounting Standard for Revenue Recognition, thecumulative effect of retrospectively applying the new accounting policy prior to the beginning of the first quarter of thecurrent fiscal year is added or deducted from retained earnings at the beginning of the first quarter of the current fiscal
year, and the new accounting policy is applied from the beginning balance of the current fiscal year. However, the new
accounting policy has not been applied retrospectively to contracts for which the method set forth in paragraph 86 of
the Revenue Recognition Accounting Standard has been applied and substantially all revenue amounts have beenrecognized in accordance with previous treatment prior to the beginning of the first quarter of the current fiscal year. In
addition, the Company applies the method stipulated in paragraph 86 of the Revenue Recognition AccountingStandard and paragraph (1) of the Written Accounting Standard. Contract modifications made prior to the beginning of
the first quarter of the current fiscal year are accounted for under the terms of the contract after reflecting all contract
modifications, and the cumulative effect of these modifications is adjusted to retained earnings at the beginning of thefirst quarter of the current fiscal year.
The adoption of this accounting standard is not expected to have a material impact on the quarterly consolidated
financial statements.
(Application of Accounting Standard for Calculation of Fair Value)
The Accounting Standard for Calculation of Fair Value (ASBJ Statement No. 30, July 4, 2019, hereinafter referred to as
the "Accounting Standard for Calculation of Fair Value") and other standards were applied from the beginning of thefirst quarter of the current fiscal year, and in accordance with the transitional treatment stipulated in paragraph 19 of the
Accounting Standard for Calculation of Fair Value and paragraph 44-2 of the Accounting Standard for Financial
Instruments (ASBJ Statement No. 10, July 4, 2019), the new accounting policy stipulated by the Accounting Standard
for Calculation of Fair Value will be applied in the future.
(Additional Information)(Improper Behavior by Our Former Subsidiary Employees)
In a tax examination conducted by the Nagoya Regional Taxation Bureau in July 2021, it was discovered that a former
employee of two of our subsidiaries had misappropriated the Company's funds due to fictitious claims, fraudulent
remittances, etc. In response, we launched an internal investigation committee chaired by an attorney who conducted
an investigation and received a survey report in December 2021.
The amount of ¥496 million pointed out by the Nagoya Regional Taxation Bureau for this wrongdoing was recorded as
extraordinary loss. In addition, an estimated amount of 88 million yen for additional tax collection due to fraud detection
is included in income taxes, inhabitant taxes and enterprise taxes.

10TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2021

(Segment Information)[Segment Information]
I. Nine Months Ended December 31, 2020 (April 1, 2020 to December 31, 2020)
Sales and Income of Losses by Reportable Segment
Reportable segments
Information
Building
Other1andEnergy equipment CATV
Aqua Subtotal
Communireal estatecations
Sales
Sales toexternalcustomers
Intersegment
sales andtransfers

53,437151

Subtotal

53,588Segment income(loss)

2,996

14,815 24,994
700

37,831456

2,630

15,516 25,450

40,461

539

3,740

2,151

5,778 136,857
139

4,077

5,917 140,935
333

9,760

(Millions of yen)Amount inquarterly
Total Adjustments2 consolidated
statements ofIncome3－

139,792

4,176-4,176－

3,033 143,969-4,176

139,792

9,640

260

9,901

2,934 139,792
98

-120

(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.

II. Nine Months Ended December 31, 2021 (April 1, 2021 to December 31, 2021)
Sales and Income of Losses by Reportable Segment
Reportable segments
Information
Building
Other1andEnergy equipment CATV
Aqua Subtotal
Communireal estatecations
Sales
Sales toexternalcustomers
Intersegment
sales andtransfers

58,717
139

Subtotal

58,857

Segment income(loss)

2,282

Total

Adjustments2

3,395 149,420－

149,420

5,213-5,213－

41,378 5,985 151,156

3,477 154,634-5,213

149,420

2,473

-111

9,313

-64

9,248

19,025 24,265

38,206 5,811 146,025

1,256

3,171

389

20,281 24,654
555

4,044

(Millions of yen)Amount inquarterly
consolidated
statements ofIncome3

174

67

5,131

9,424

82

(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.

11