Consolidated Financial Results for theYear ended March 31, 2023 [Japanese GAAP]May 9, 2023
Company name:
Stock code:
Representative:
Contact:

TOKAI Holdings Corporation
Stock listing:Tokyo Stock Exchange
3167
URL:
http://tokaiholdings.co.jp
Katsuo Oguri, President & CEO
Junichi Yamada, Managing Executive Officer, General Manager of Administrative Headquarters
Telephone: +81-54-275-0007
Scheduled date of General shareholders' meeting:June 28, 2023
Scheduled start date of dividend payment:
June 28, 2023
Scheduled date to submit Securities Report:
June 28, 2023
Supplementary materials on financial results:
Yes
Quarterly financial results briefing:
Yes (Institutional Investors only)(Figures are rounded to the nearest million yen)

1. Consolidated financial results for the year ending March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Consolidated Operating Results(% figures represent year-on-year changes)
Sales

Operating Profit

Net Income
Attributable to
Owners of the
ParentRecurring Profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Year ended March 31, 2023

230,190

9.3

14,919-5.5

13,289

-16.5

6,465

-27.9

Year ended March 31, 2022

210,691

7.1

15,794

3.7

15,907

3.9

8,969

1.7

(Note) Comprehensive income: 7,725 million yen in the Year ended March 31, 2023 (-8.3%)
7,131 million yen in the Year ended March 31, 2022 (-48.1%)
Net Income
per Share

Net Income per
Share (Diluted)

Return on
EquityRecurring Profit
to Total Assets

Operating Profit
Margin

Yen

Yen

%

%

%

Year ended March 31, 2023

49.41

-

8.2

7.0

6.5

Year ended March 31, 2022

68.49

-

11.8

8.8

7.5

(Reference) Equity in affiliates accounted for under the equity method:-1,977 million yen for the ended March 31, 2023
-259 million yen for the ended March 31, 2022

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Net Assets per Share

Millions of yen

Millions of yen%

Yen

Year ended March 31, 2022

184,473

78,94641.9

590.21

Year ended March 31, 2021

178,974

76,05641.6

568.93

Cash and Cash
Equivalents at theEnd of the Year

(Reference) Equity: 77,234 million yen for the Year ended March 31, 2022
74,510 million yen for the Year ended March 31, 2021

(3) Consolidated Cash Flows
Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Year ended March 31, 2023

21,193-14,152-7,4594,028

Year ended March 31, 2022

20,808(14,592)(6,905)4,447

2. Dividends
Annual Dividend
End of End of
YearQ2
Q3
end

End of
Q1
Year ending March 31, 2022
Year ending March 31, 2023
Year ending March 31, 2024
(Forecast)

Total

Total
Dividends

Payout Ratio(Consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

―
―

15.00
16.00

―
―

17.00
16.00

32.00
32.00

4,203
4,203

46.7
64.8

―

16.00

―

16.00

32.00

Dividend on
Equity(Consolidated)
5.5
5.3

49.2

3. Consolidated Earnings Forecasts for the Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)(% figures represent year-on-year changes)

Sales

Year ending March
31, 2024

Operating Profit

Recurring Profit

Millions of yen%

Millions of yen%

Millions of yen

240,000

4.3

15,0000.5

15,000Net Income Attributable Net Income
to Owners of the Parent per Share

%Millions of yen

%

Yen

12.9

8,500

31.5

65.10

*Notes(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries affecting the scope of consolidation): No(2) 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, see “3. Consolidated Financial Statements and Main Notes (5) Notes on Consolidated Financial Statements (Changes in Accounting
Policy)” on page 15 of the Attachment.
(3) 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:3) Average number of shares during the period (cumulative):

FY2022

139,679,977 shares FY2021

FY2022

9,105,687 shares FY2021

8,819,780 shares

FY2022130,865,731 shares FY2021

130,971,865 shares

139,679,977 shares(Note) Board benefit trust shares(BBT) is included in the number of year-end treasury stock. (782,100 stocks at FY3/2023, 496,900 stocks at
FY3/2022)

For treasury shares to be deducted in calculation of the average number of shares during the fiscal year, the Company's

shares (491,023 stocks at FY3/2023, 385,805 stocks at FY3/2022) owned by the BBT are included.

(Reference) Overview of Non-Consolidated Operating Performance
Operating Performance for the Year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Non-Consolidated Operating Results(% figures represent year-on-year changes)
Sales

Operating Profit

Net Income
Attributable to
Owners of the
ParentRecurring Profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Year ended March 31, 2023

9,751

-3.7

4,490

-7.7

4,590

-5.9

4,220

-14.1

Year ended March 31, 2022

10,127

8.0

4,863

18.5

4,877

18.2

4,910

32.2

Net Income per
Share

Net Income per
Share (Diluted)

Yen

Yen

Year ended March 31, 2023

32.25

-

Year ended March 31, 2022

37.50

-

(2) Non-Consolidated financial Position
Total Assets

Net Assets

Equity Ratio

Net Assets per Share

Millions of yen

Millions of yen%

Yen

Year ended March 31, 2023

102,682

41,04039.9

314.03

Year ended March 31, 2022

99,14941,12441.5

314.19(Reference) Equity: 41,003 million yen for the Year ended March 31, 2023
41,115 million yen for the Year ended March 31, 2022
* Information Regarding Execution of Quarterly Review Procedures* 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 this document. Actual
results may differ from forecasts due to various factors going forward.

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2023

[Attachment]

Contents
1. Overview of Operating Results and Financial Position········································································ 2(1) Overview of Operating Results ····························································································· 2(2) Overview of Financial Position ······························································································ 3(3) Overview of Cash Flows ····································································································· 4(4) Future Outlook·················································································································· 4(5) Basic Profit Distribution Policies and Dividends for the Current and Next Fiscal Years ······························· 5
2. Basic Perspective on Selection of Accounting Standards········································································ 6
3. Consolidated Financial Statements ······························································································ 7(1) Consolidated Balance Sheets ······························································································ 7(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ············· 9(3) Statement of Changes in Consolidated Shareholders’ Equity ······················································ 11(4) Consolidated Statements of Cash Flows ··············································································· 13(5) Notes to the Consolidated Financial Statements ······································································ 15(Notes on Going Concern Assumptions) ·············································································· 15(Changes in Accounting Policies) ························································································· 15(Additional Information) ··································································································· 15(Segment Information)····································································································· 16(Per-Share Information) ··································································································· 18(Important Subsequent Events) ························································································· 19
4. Other ································································································································· 20(1) Changes in Executive Positions····························································································· 20

1TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2023

1. Overview of Operating Results and Financial Position(1) Overview of Operating Results
Consolidated operating results for the fiscal year under review
For the consolidated fiscal year under review, the Japanese economy continued to face concern overhigh prices due to the ongoing depreciation of the yen and soaring raw material and energy prices
caused by the situation in Ukraine. However, in the world with COVID-19, the economy is expected topick up as a result of various government policies and expanding moves by companies to raise wages
and support diversification of work styles.
During the fiscal year ended March 31, 2023, the Group continued its concerted efforts to accelerate
the expansion of business areas and digital marketing, to create open innovation, to step up its digitaltransformation (DX) strategy, to optimally allocate management resources, and to strengthen its SDG
initiatives.
Consequently, the Group posted a 106,000 rise in the number of continuing customers, to 3,299,000
for the fiscal year ended March 31, 2023 (whereas the number grew 95,000 in the same period a year
earlier). The number of TLC Membership Service members increased 71,000 to 1,158,000 (whereas itrose 107,000 for the same period a year earlier).
In June, 2022, the Group acquired shares of Wood Recycle Co., Ltd. (Gero City, Gifu Prefecture), a
company engaging in industrial waste treatment and manufacturing of woodchips, and made it aconsolidated subsidiary. In October, the Group acquired shares of J-support Co., Ltd. (Chuo-ku,
Fukuoka City), which engages in the development, sales, and maintenance of packaged software
for the logistics and warehousing industry, and Okinawa Cable Network Inc. (Naha City, Okinawa
Prefecture), which operates a CATV business, and made them consolidated subsidiaries. In March
2023, TOKAI Kids Touch Corporation (Aoi-ku, Shizuoka City), a consolidated subsidiary, launched atemporary daycare center service.
In addition, the Group made positive achievements in expansion of its business base by establishinga new LP gas sales base in Matsuyama City, Ehime Prefecture in March 2023 to expand into the
Shikoku area.
Under these circumstances, for the fiscal year ended March 31, 2023, the Group posted net sales of
230,190 million yen (up 9.3% year on year). However, given rises in gas purchase costs and in
expenses for gaining customers, operating profit was down 5.5% year on year to 14,919 million yen.
Ordinary profit stood at 13,289 million yen, down 16.5% year on year, after posting investment losses
including impairment losses associated with the goodwill of an affiliate in Vietnam. Profit attributable toowners of parent was 6,465 million yen, down 27.9% year on year.
Performance by segment is indicated below.
(Energy)In the LP gas business, the number of customers increased 31,000 from the end of the previous
fiscal year, to 746,000, reflecting sustained Group efforts to attract customers. Net sales stood at
82,921 million yen (up 12.4% compared to the previous fiscal year), chiefly due to a rise in selling
prices linked to purchase prices in the industrial gas business.
In the city gas business, the number of customers grew 5,000 from the end of the previous fiscal
year, to 75,000. Net sales reached 19,607 million yen (up 50.8%), due to the effects of the gas rateadjustment system.
In this overall segment, net sales came to 102,528 million yen, up 18.2% year on year. However,operating profit stood at 4,285 million yen, down 29.3％ year on year, due mainly to a hike in thecost of gas.
(Construction, Equipment, and Real Estate)
In the Construction, Equipment and Real Estate business, net sales stood at 26,809 million yen,down 3.5% year on year, and operating profit at 1,312 million yen, down 23.1% year on year. These
results are attributable to decreases in large facilities projects, civil engineering work and projects forthe construction of new stores and other facilities.
(CATV)In the CATV business, the Group focused on providing local information and the production ofprograms as a community-based service provider. The Group collaborated with major video
distributors and made other efforts to enhance content. Due to aggressive sales activities, the2

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2023

broadcasting services customer count rose to 914,000, an increase of 26,000 from the end of theprevious fiscal year. The communications services customer count increased to 373,000, a rise of
29,000 from the end of the previous fiscal year.
Net sales in this segment stood at 34,500 million yen (up 5.9%), and operating profit came to5,523 million yen (up 6.4%).
(Information and Communications)
In the business for consumers, the Group worked to acquire customers in an effort to achieve a
net increase in customers. For example, it worked to gain customers in collaboration with major
telecommunications carriers in the ISP business. In the mobile business, the Group broadened the
LIBMO service lineup and introduced package plans with fixed lines. These actions consequently
achieved a net increase in the number of broadband customers, which surged 11,000 from the endof the previous fiscal year to 665,000. LIBMO customers increased by 16,000 to 71,000. However, adecrease in ARPU resulted in net sales of 24,402 million yen, on par with the previous year.
In the business for corporate clients, net sales came to 29,542 million yen, up 9.4% year on year,
mainly reflecting steady growth in career services and cloud services and an increase in the contractdevelopment projects.
Net sales in this segment stood at 53,945 million yen (up 5.0%), and operating profit came to
3,841 million yen (up 14.5%).
(Aqua)
In⁠⁠ the Aqua (bottled drinking water delivery) business, the number of customers was 165,000, thesame as the end of the previous fiscal year. That resulted from sales activities in events at large
retail facilities and others as well as non-face-to-face sales activities such as efforts to win contracts
online and telemarketing.
Net sales in this segment were 7,529 million yen, down 1.3% year on year, chiefly following adecline in consumption per household. However, as a result of cutting expenses for sales activities,
operating profit reached 262 million yen, up 462.6% year on year.
(Others)
Net sales in the nursing care business stood at 1,362 million yen (up 0.7%), reflecting an increasein the number of users. Net sales in the shipbuilding business rose to 1,709 million yen (up 2.2%),
due to an increase in the number of ship repair work. In the bridal events business, net
sales reached 1,012 million yen (up 56.5%), following a recovery in weddings and receptions.
Overall, net sales in this segment came to 4,876 million yen (up 7.4%), and the operating profit
was 169 million yen (an operating loss of 103 million yen in the same period of the previous
consolidated fiscal year).
(2) Overview of Financial Position
Total assets at the end of the current consolidated fiscal year under review stood at 193,339 million yen,
an increase of 8,865 million yen from the end of the previous fiscal year. The increase was attributableprimarily to an increase of 4,367 million yen in property, plant and equipment, a rise of 1,418 million yen
in merchandise and finished goods, an increase of 1,333 million yen in notes and accounts receivable trade and contract assets, and a hike of 1,778 million yen in Other in current assets, which mainly reflects
an increase in accounts receivable - other.
Total liabilities came to 11,034 million yen, an increase of 5,507 million yen from the end of the previous
fiscal year. This was mainly due to an increase of 1,341 million yen in short-term borrowings, a rise of
1,133 million in notes and accounts payable–trade, a hike of 1,118 million yen in long-term borrowings, anincrease of 933 million yen in lease liabilities in non-current liabilities and a hike of 1,251 million yen in
Other, net in current liabilities, mainly due to an increase in contract liabilities.
Total net assets were 82,304 million yen, an increase of 3,358 million yen from the end of the previous
fiscal year. This was chiefly due to posting of profit attributable to owners of parent of 6,465 million yen
and to increases in valuation difference on available-for-sale securities by 852 million yen and in foreign
currency translation adjustment by 371 million yen despite dividends of surplus of 4,334 million yen.

3

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2023

(3) Overview of Cash Flows
Cash and cash equivalents (“cash”) as of the end of the current consolidated fiscal year were 4,028
million yen, a decrease of 418 million yen from the end of the previous fiscal year.
Cash flows from each activity during the fiscal year under review and the factors behind them are as
follows.
(Cash flows from operating activities)
Net cash provided by operating activities was 21,193 million yen (384 million yen higher year onyear). The cash inflows were attributable primarily to profit before income taxes, and depreciation asa non-cash account title, which were partially offset by income taxes paid, and growth in inventories
among other cash outflows.
(Cash flows from investing activities)
Net cash used in investing activities 14,152 million yen (440 million yen higher year on year). The
cash outflows were attributable primarily to purchases of property, plant and equipment and intangible
assets and to expenses for acquisition of securities.
(Cash flows from financing activities)
Net cash used in financing activities was 7,459 million yen (554 million yen less year on year).
Loans payable and other cash inflows were more than offset by cash outflows, including repayment ofloans payable, repayments of lease obligations and payment of cash dividends.
Below is a summary of major cash flow indicators.

FY03/19
Equity ratio (%)
Equity ratio on amarket-value basis(%)
Ratio of interestbearing debt tocash flow (times)
Interest coverage
ratio(times)

FY03/20

FY03/21

FY03/22

FY03/23

37.4

38.0

41.6

41.9

41.5

71.8

72.2

70.0

61.1

59.0

2.3

2.1

1.3

2.1

2.2

58.2

72.3

108.2

75.4

77.5

(Notes) Equity ratio: Shareholders' equity / Total assets
Equity ratio on a market-value basis: Total value of shares at market price/Total assets
Ratio of interest-bearing debt to cash flow: Interest-bearing debt/Cash flow from operating activities
Interest coverage ratio: Cash flow from operating activities/Interest payments* All financial indicators are calculated on a consolidated basis* Market capitalization is based on the year-end closing share price multiplied by the number of shares outstanding at yearend (excluding treasury stock).
* Operating cash flow is based on cash flows from operating activities in the consolidated statements of cash flows. Interestbearing debt covers bonds payable and loans payable in the consolidated balance sheets. Interest payments are basedon the interest expenses paid shown in the consolidated statements of cash flows.

(4) Future outlook
In FY2023, the Group will continue to actively promote customer acquisition with the aim of increasing net
sales and each profit item, while factoring in the impact of increased personnel expenses due to wage hikes.
The consolidated earnings forecast for FY2023 is as follows.
<Consolidated earnings forecast for FY2023>
Net sales

240,000 million yen (+4.3％ year on year)

Operating profit

15,000 million yen (+0.5％ year on year)

Ordinary profit
15,000 million yen (+12.9％ year on year)
Profit attributable to owners of parent
8,500 million yen (+31.5％ year on year)
These earnings forecasts are based on information currently available to the Company. Actual results may
4

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2023

differ from forecasts due to a variety of factors.
(5) Basic Profit Distribution Policies and Dividends for the Current and Next Fiscal Years
The Company’s basic policy on profit distribution is to maintain stable dividends that reflect consolidated
earnings, as well as a dividend payout ratio of 40–50%.
For the fiscal year ended March 31, 2023, we forecast annual dividends of 32 yen per share, consisting of
the already-issued interim dividend of 16 yen per share and a year-end dividend of 16 yen per share. We also
project annual dividends of 32 yen per share in the fiscal year ending March 31, 2024.

5

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2023

2. Basic Perspective on Selection of Accounting Standards
As the Group conducts its operations primarily in Japan, with little overseas activity, we intend to comply
with Japanese Generally Accepted Accounting Principles (J-GAAP) for the foreseeable future. However, we
will consider the adoption of International Financial Reporting Standards (IFRS), taking into account various
situations in Japan and overseas.

6

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2023

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade and contract assets, net
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
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Buildings and structures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other, net
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Leased assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Total assets

7

As of March 31, 2022

As of March 31, 2023

4,743
28,566
4,030
740
1,376
8,072
- 431
47,0984,359
29,899
5,448
1,130
1,589
9,850
- 454
51,824

135,544- 100,043
35,500108,369- 83,537
24,832
24,911
26,658- 11,309
15,348689
16,927- 12,194
4,733
106,017

139,650- 103,462
36,188112,439- 86,401
26,03824,841
29,035- 12,318
16,716
1,378
17,698- 12,477
5,221
110,384

6,040
675
4,278
10,993

5,904
599
3,988
10,492

9,454
58
2,670
3,769
4,623
- 211
20,364
137,375－
184,473

9,829
66
2,286
4,092
4,603
- 243
20,634
141,5113
193,339

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2023

(Millions of yen)
Liabilities
Current liabilities
Notes and accounts payable–trade
Short-term loans payable
lease obligations
Income taxes payable
Provision for bonuses
Other accruals
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Other accruals
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

8

As of March 31, 2022

As of March 31, 2023

18,66814,411
4,217
2,819
1,443
318
15,942
57,82219,801
15,753
4,479
2,247
1,525
45
17,19361,04629,736
12,889
368
1,038
3,671
47,704
105,527

30,855
13,823
342
1,377
3,588
49,988111,034

14,00025,55236,395- 2,332
73,61514,00025,56638,526- 2,601
75,492

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

1,458
741
2,492
4,692
36
2,083
82,304
193,339

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2023

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)

Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating profit
Interest income
Dividend income
Commission income
Subsidy income
Other
Total non-operating income
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 receipt of donated non-current assets
Gain on sale of investment securities
Gain on bargain purchaseTransmission line facility subsidies
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Loss on sales of investment securities
Loss on valuation of investment securities
Anniversary project cost
Other
Total extraordinary losses
Net income before income taxes
Income taxes (current)
Income taxes (deferred)
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent

9

Fiscal year ended
March 31, 2022
210,691
125,479
85,212
69,41815,794

Fiscal year ended
March 31, 2023
230,190
144,129
86,06071,141
14,919

14
250
37
71
354
729

12
226
34
86
359
719

268
259
88
615
15,907

271
1,977
101
2,349
13,289

7
128
436
127
－
700

36
146
51
118
12
364

1
829
5
13
－
271
496
1,617
14,990
5,936
- 79
5,857
9,133
163
8,969

3
845
373
224
1,772
11,882
4,991
240
5,231
6,650
185
6,465

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2023

(Consolidated Statements of Comprehensive Income)(Millions of yen)

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted forusing the equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

10

Fiscal year ended
March 31, 2022
9,133

Fiscal year ended
March 31, 2023
6,650

- 610
- 1,918
-5
188

852
－
0
- 151

344

373

- 2,001
7,131

1,074
7,725

6,965
165

7,538
186

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2023

(3) Statement of Changes in Consolidated Shareholders’ Equity
Previous consolidated fiscal year (from April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders’ equity
Capital stock

Capital surplus

14,000

Balance at beginning of period

Retained earnings

25,542

Total shareholders’

Treasury stock

31,563equity(2,219)68,887(2,219)68,820(66)

Cumulative effects of changes in accounting policies
14,000

Restated balance

25,542(66)

31,497

Change during the year
Dividends of surplus(4,072)

Net income attributable to owners of the parent

8,969(4,072)
8,969

Acquisition of treasury shares
9

Disposition of treasury shares

(119)

(119)

6

15

Increase (decrease) in cash resulting from merger ofconsolidated subsidiaries
Net changes of items other than shareholders' equity
－

9

4,897

(112)

4,794

14,00025,55236,395(2,332)

73,615

Total change during the year
Balance at end of period

Accumulated other comprehensive income
Valuation
Foreign
Total accumulated
Deferred gains
Remeasurements
difference on
currency
otheror losses onof defined benefit
available-for-saletranslation
comprehensive
hedgesplans
securities
adjustment
incomeBalance at beginning of
period

1,216

1,918

33

2,454

5,623

Share
acquisitionrights

Noncontrollinginterests

‒

1,545

Cumulative effects ofchanges in accounting
policies
Restated balance

Total net
assets

76,056

(66)
1,216

1,918

33

2,454

5,623

‒

1,545

75,989Change during the year
Dividends of surplus(4,072)

Net income attributableto owners of the parent

8,969

Acquisition of treasury
shares(119)

Disposition of treasury
shares15

Increase (decrease) incash resulting frommerger of consolidated
subsidiaries-

Net changes of items
other thanshareholders' equity(610)(1,918)336

188(2,004)9

156(1,838)

Total change during the
year

(610)

(1,918)336

188(2,004)

9

156

2,956

Balance at end of period

605

‒

369

2,643

3,619

9

1,702

78,946

11

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2023

Consolidated fiscal year under review (from April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders’ equity
Capital stock

Capital surplus

14,000

Balance at beginning of period

25,552Retained earnings

Total shareholders’

Treasury stock

36,395equity- 2,332

73,615

Change during the year
Dividends of surplus- 4,334

Net income attributable to owners of the parent

6,465- 4,334
6,465

Acquisition of treasury shares
14

Disposition of treasury shares

- 278

- 278

9

23

Net changes of items other than shareholders' equity
－

14

2,130

- 268

1,876

14,00025,56638,526- 2,601

75,492

Total change during the year
Balance at end of period

Accumulated other comprehensive income
Valuation
Foreign
Deferred gains
Remeasurements Total accumulateddifference on
currency
or losses onof defined benefit other comprehensive
available-for-saletranslation
hedgesplans
incomesecurities
adjustment
Balance at beginning of
period

605

－

369

2,643

3,619

Share
acquisitionrights

Noncontrollinginterests

Total net
assets9

1,702

78,946

Change during the year
Dividends of surplus- 4,334

Net income
attributable to ownersof the parent

6,465

Acquisition of treasury
shares- 278

Disposition of treasury
shares23

Net changes of items
other thanshareholders' equity

852

Total change during the
year

852

Balance at end of period

1,458

371

- 151

1,073

27

381

1,481

－

371

- 151

1,073

27

381

3,358

－

741

2,492

4,692

36

2,083

82,304

12

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2023

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2022
Cash flows from operating activities
Net income before income taxes and minority
interests
Depreciation
Amortization of goodwill
Gain on bargain purchase
Impairment loss
Increase in net defined benefit asset and liability
Interest and dividend income(Gain) loss on sale of investment securities
Interest expenses
Share of loss (profit) of entities accounted for using
equity method(Gain) loss on sales of non-current assets
Loss (gain) on valuation of investment securities
Loss on retirement of non-current assets
Increase (decrease) in notes and accounts payable(Increase) decrease in inventories
Increase (decrease) in notes and accounts
payable–trade
Other
Subtotal
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Interest and dividend income received
Proceeds from withdrawal of time deposits
Purchase of securities
Proceeds from sales of securities
Purchase of tangible and intangible assets
Proceeds from sales of tangible and intangible
assetsPayments for retirement of non-current assets
Proceeds
fromcontribution
received
forconstruction
Purchase of shares of subsidiaries resulting inchange in scope of consolidation
Loan advances
Collection of loans receivable
Other
Net cash provided by (used in) in investing
activities

13

Fiscal year ended
March 31, 2023

14,99011,882

14,957
975
5
- 259
- 265
- 423
268

15,239
985
- 51
373
- 422
- 239
- 146
271

259

1,977

-6
－
829
- 3,321
156

- 32
224
845
- 655
- 1,918

1,341

1,048

- 2,798
26,709- 5,900
20,808- 1,61327,767- 6,573
21,193

305
843
- 178
880
- 13,345

310- 1,156199- 13,963

267

378

- 243

- 299

260

173

- 2,664

- 285

- 571
16
680

－
607
- 117

- 14,592- 14,152

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2023

(Millions of yen)
Fiscal Year Ended

Fiscal Year Ended

March 31, 2022

March 31, 2023

Cash flows from financing activities

- 275
1,370
- 4,039
10,500- 10,148
- 112
- 119
- 4,072-6- 6,905
0
- 688
5,136
4,447

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

14

- 273
1,165
- 4,581
11,600- 10,750－- 278- 4,333-8- 7,459
-0
- 418
4,447
4,028

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2023

(5) Notes on Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable(Changes in Accounting Policies)(Application of Implementation Guidance on Accounting Standard for Calculation of Fair Value)
The Company has applied the "Implementation Guidance on Accounting Standard for Calculation of Fair Value"(ASBJ Guidance No. 31, June 17, 2021; hereinafter the "Implementation Guidance on Accounting Standard for Market
Value Calculation") from the beginning of the fiscal year ended March 31, 2023, and decided to apply the new
accounting policy stipulated by the Implementation Guidance on Accounting Standard for Market Value Calculation inaccordance with the transitional treatment stipulated in Article 27-2 of the Implementation Guidance on AccountingStandard for Market Value Calculation in the future. The adoption of this accounting standard will have no impact on
the consolidated financial statements.

(Additional Information)(Inappropriate use of expenses by former President and CEO)The Company launched a special investigation committee including an outside lawyer and an outside certified public
accountant in September 2022 to begin an investigation in connection with its former President and CEO's inappropriate
use of expenses. On December 14, 2022, the Company received from the special investigation committee aninvestigation report stating that the committee found a use of expenses whose relation with the Group’s business could
not be confirmed.
The Company disclosed this investigation report on December 15, 2022. And on December 23, 2022, the Company
announced the formulation of effective measures to prevent a recurrence of the incident and initiatives to strengthen its
internal control based on recommendations from the special investigation committee.
For the fiscal year ended March 31, 2023, an estimated amount of income taxes concerned with the incident wasposted in a lump sum. However, the impact is insignificant.
In addition, the Company posted expenses related to special investigations into this incident as special investigation
expenses in extraordinary losses.

15

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2023

(Segment Information)[Segment Information]
1. Outline of reportable segments
The Group’s reportable segments are constituent units of the Group for which discrete financial information
can be obtained, and for which the Board of Directors can decide on the allocation of management resourcesand evaluate operating performance. Consequently, the segments are principal categories that allow for
regular consideration.
The Group establishes operational headquarters by product and service. Each operational headquarters
drafts comprehensive strategies for the products and services it handles, and conducts business activities
accordingly.
Consequently, in principle the product- and service-specific operational headquarters that form this basecomprise the Group’s five reportable segments: Energy; Construction, Equipment, and Real Estate; CATV;
Information and Communications; and Aqua.
In the Energy segment, the Group sells LP gas, liquefied natural gas (LNG), and other high-pressure gases;
markets petroleum products; supplies city gas; sells relevant products; performs construction of energy-related
facilities and equipment; and provides security services.
In the Construction, Equipment, and Real Estate segment, the Group constructs residential facilities andother buildings; develops, sells, and leases real estate; sells construction materials and residential equipment;
installs pre-furnished equipment and appliances in buildings; and operates home renovation, civil engineering,and electrical construction businesses.
In the CATV segment, the Group provides broadcasting and Internet connectivity services utilizing CATV
networks.
In the Information and Communications segment, the Group develops computer software; processes
information; provides Internet connectivity; sells communications equipment; and performs agent operations.
In the Aqua segment, the Group produces and sells bottled drinking water.
2. Method of Calculation of Amounts in Sales, Profit and Losses, Assets, Liabilities, and Other Items for Each
Reportable Segment
The accounting methods used in reportable business segments are the same as specified in "Significant
Matters Forming the Basis of Preparing the Consolidated Financial Statements."
Profit for reportable segments is based on operating profit, and intra-segment sales and transfers are
conducted at prevailing market prices.
3. Information Related to Sales, Profit and Losses, Assets, Liabilities, and Other Items for Each Reportable
Segment
For the fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)(Millions of yen)
Reportable segments
Building
facilities
Information andEnergy
CATV
Aqua
Real
Communications
estateAmount inconsolidated
Other
Adjustments
Totalstatements(note 2)
Total (note 1)of income(note 13

Net sales
Sales to externalcustomers
Intra-segment
sales and transfer

86,770184

27,780 32,572

51,398

1,608

516

5,037

7,629 206,151
218

7,565

－

210,691

7,727-7,727－

4,540 210,691
162

Total

86,95429,388 33,089

56,435

7,847 213,716

4,703 218,419-7,727

210,691

Segment profit (loss)

6,059

1,706

5,189

3,355

46 16,357-103 16,254-460

15,794

Segment assets

72,61730,042 39,606

29,757

5,093 177,117

4,628 181,745

2,728

184,4733,143

693 14,463

80 14,543

413

14,957

Other items
Depreciation

4,514

746

5,364

Amortization of
308
224
348
42
－
923
52
975
－
975
goodwill
Increase intangible and7,698
514 7,401
2,699
717 19,031
61 19,093
401
19,494
intangible assets(Notes) 1. The “others” category is a business segment not included in the reportable segments. This category
includes businesses such as bridal events, ship repair, nursing care, and insurance.
2. Adjustments are as follows:(1) Adjustments to segment profit (loss) are eliminations due to intra-segment transactions.
(2) Adjustments to segment assets, depreciation, and increase in tangible and intangible assets are
due to companywide assets, depreciation, and increase in tangible and intangible assets thatare not allocated to individual reportable segments.
3. Segment profit (loss) is adjusted to match operating profit in the consolidated statements of income.

16

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2023

For the fiscal year ended March 31, 2023 (April 1, 2022 – March 31, 2023)(Millions of yen)
Reportable segments
Construction,
Equipment,
Information andEnergyCATV
Aqua
and Real
Communications
EstateAmount inconsolidated
Other
Adjustments
Totalstatements(note
1)(note 2)
Totalof income(note 3)

Net sales
Sales to external
102,528
customers
Intra-segment
sales and207
transfer
Total

102,735－

230,190

6,893-6,893－28,062 34,968

58,289 7,783 231,840 5,243 237,083-6,893

230,190

3,841

169 15,394-474

14,91932,277 5,221 183,633 4,946 188,579

4,760

193,339432

15,23926,809 34,500

53,945 7,529 225,313 4,876 230,190

1,253

4,344

467

Segment profit(loss)

4,285

1,312

Segment assets

75,902

28,120 42,111

5,523

254

6,526

262 15,224

366

Other items
Depreciation

4,734

757

5,559

3,009

673 14,733

73 14,807

Amortization of
228
344
55
929
56
985
985
299
－
－
goodwill
Increase intangible and7,152
696 7,091
4,296
848 20,085
89 20,175
248
20,424
intangible assets(Notes) 1. The “others” category is a business segment not included in the reportable segments. This category
includes businesses such as bridal events, ship repair, nursing care, and insurance.
2. Adjustments are as follows:(1) Adjustments to segment profit (loss) are eliminations due to intra-segment transactions.
(2) Adjustments to segment assets, depreciation, and increase in tangible and intangible assets are
due to companywide assets, depreciation, and increase in tangible and intangible assets thatare not allocated to individual reportable segments.
3. Segment profit (loss) is adjusted to match operating profit in the consolidated statements of income.
Reference Information
For the fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)
1. Information by Product and Service
This information is omitted because the same information is disclosed in the Segment Information section.
2. Information by Region(1) Sales
This information is omitted because sales to customers in Japan account for more than 90% of sales in
the consolidated statements of income.
(2) Property, Plant and Equipment
This information is omitted because property, plant and equipment in Japan account for more than 90%
of property, plant and equipment in the consolidated balance sheets.
3. Information by Major Customer
This information is omitted because no customers account for 10% or more of sales in the consolidated
statements of income.
For the fiscal year ended March 31, 2023 (April 1, 2022 – March 31, 2023)
1. Information by Product and Service
This information is omitted because the same information is disclosed in the Segment Information section.
2. Information by Region(1) Sales
This information is omitted because sales to customers in Japan account for more than 90% of sales in
the consolidated statements of income.
(2) Property, Plant and Equipment
This information is omitted because property, plant and equipment in Japan account for more than 90%
of property, plant and equipment in the consolidated balance sheets.

17

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2023

3. Information by Major Customer
This information is omitted because no customers account for 10% or more of sales in the consolidated
statements of income.
Information Related to Impairment Losses of Non-current Assets by Reportable Segment
For the fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)(Millions of yen)
EnergyImpairment
lossesBuilding
facilities
Real estate－

Information andCommunications

CATV
－

3

Aqua

－

Corporate or
elimination

Other
－

Total

－

2

5

For the fiscal year ended March 31, 2023 (April 1, 2022 – March 31, 2023)(Millions of yen)
EnergyImpairment
lossesBuilding
facilities
Real estate－

198

Information andCommunications

CATV
－

Aqua

－

Corporate or
elimination

Other
－

10

164

Total
373

Information Related to Amortization of Goodwill and Unamortized Balance by Reportable Segment
For the fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)(Millions of yen)
EnergyAmortization
during theperiodBalance at
end ofperiodBuilding
facilities
Real estate

CATV

Information andCommunications

Aqua

Corporate or
elimination

Other

Total

308

224

348

42

－

52

－

975

1,120

1,800

2,637

328

－

153

－

6,040

For the fiscal year ended March 31, 2023 (April 1, 2022 – March 31, 2023)(Millions of yen)
EnergyAmortization
during theperiodBalance at
end ofperiodBuilding
facilities
Real estate

CATV

Information andCommunications

Aqua

Corporate or
elimination

Other

Total

299

228

344

55

－

56

－

985

1,332

1,623

2,297

542

－

108

－

5,904

Information on Negative Goodwill Generated for Each Reportable Segment
For the fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)
Not applicable
For the fiscal year ended March 31, 2023 (April 1, 2022 – March 31, 2023)
The information is omitted because it has little significance.

(Per-Share Information)
For the fiscal year ended

For the fiscal year ended

March 31, 2022
(April 1, 2021 – March 31, 2022)

March 31, 2023
(April 1, 2022 – March 31, 2023)

Net assets per share (yen)590.21614.09Profit per share

68.49

49.41

－

－

Diluted profit per share(Notes) 1. The basis of calculating the profit per share and diluted profit per share is as follows:18

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2023

For the fiscal year ended
March 31, 2022

For the fiscal year ended
March 31, 2023

(April 1, 2021 – March 31, 2022)(April 1, 2022 – March 31, 2023)

68.49

49.41

8,969

6,465

－

－

8,969

6,465

130,971

130,865

－

－

－

－

(1) Profit per share (yen)(Basis for calculation)
Profit attributable to owners of parent(millions of yen)Amounts not attributable to commonshareholders (millions of yen)
Profit attributable to owners of the parent
available to common shareholders (millions ofyen)
Average number of common shares
outstanding during the period (thousands ofshares)(2) Diluted profit per share(Basis for calculation)
Adjustments to profit attributable to owners ofparent(millions of yen)
A summary of those residual shares notincluded in calculation of diluted profit per share
due to the absence of a dilution effect which
involves material changes from the end of theprevious consolidated fiscal year

Shareacquisitionrightsfollowing a resolution of theBoard of Directors meeting on
October 28, 2021
Number of share acquisitionrights: 7,739(Common shares: 773,900
shares)－2. The number of common shares outstanding at the end of the fiscal year used in the calculation of net
assets per share excludes the Company’s shares held by Custody Bank of Japan, Ltd. (Trust Account E)(496,900 shares for the fiscal year ended March 31, 2022; 782,100 shares for the fiscal year ended March
31, 2023). The average number of common shares outstanding used in the calculation of profit per shareexcludes the Company’s shares held by Custody Bank of Japan, Ltd. (Trust Account E) (385,805 shares forthe fiscal year ended March 31, 2022; 491,023 shares for the fiscal year ended March 31, 2023).
3. Diluted profit per share in the fiscal year under review is not presented because there are no dilutive shares.

(Important Subsequent Events)
Not applicable19

TOKAI Holdings Corporation (3167) Financial Results for the year ended March 31, 2023

4. Other(1) Changes in Executive Positions
1) Change of representative director
No items to report2) Other Changes in Executive Positions (Scheduled for June 28, 2023)
1. Newly Appointed Director Candidates
Director: Hiroshi Hamazaki (Current Executive Managing Officer)
Director: Ryoko Ueda
* Ryoko Ueda is a candidate for an external director position.
2. Newly Appointed Auditor Candidates
Auditor: Hisao Ishima
Auditor: Masayuki Atsumi
Auditor: Toshiaki Matsubuchi* Masayuki Atsumi and Toshiaki Matsubuchi are candidates for external auditor positions.
3. Retiring Planned Auditors
Auditor: Takafumi Murata
Auditor: Kenji Tateishi* Kenji Tateishi is an external auditor.

20