TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017

Consolidated Financial Results for the Third Quarter of the
Fiscal Year Ending March 31, 2018 [Japanese GAAP]
February 5, 2018
Company name: TOKAI Holdings Corporation
Stock listing:Tokyo Stock Exchange
Stock code:
3167
URL:
http://tokaiholdings.co.jp
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 13, 2018
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, 2017
(April 1, 2017 to December 31, 2017)(1) Consolidated Operating Results (cumulative)(% figures represent year-on-year changes)

Sales

Operating Profit

Millions of yen%

Millions of yen

Quarterly Net
IncomeAttributable to
Owners of the
ParentRecurring Profit%

Millions ofyen%Millions of yen

Nine-months Ended
6,579
6,662 (19.2)
3,435
133,336
4.6(19.7)
December 31, 2017
Nine months Ended
(2.1)
8,193
104.5
8,246 110.3
4,850
127,432
December 31, 2016
(Note) Comprehensive income: 4,152 million yen in the Nine-months Ended December 31, 2017 (-39.7%)
6,884 million yen in the Nine months Ended December 31, 2016 (536.8%)
Quarterly Net Income
per Share
Nine-months Ended
December 31, 2017
Nine months Ended
December 31, 2016%(29.2)
247.6

Quarterly Net Income
per Share (Diluted)

Yen

Yen

26.66

26.16

42.71

37.06

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

Nine-months Ended
165,897
59,224
December 31, 2017
Year ended
161,11256,446
March 31, 2017
(Reference) Equity: 58,129 million yen for the Nine-months Ended December 31, 201755,654 million yen for the year ended March 31, 2017

35.0
34.5

2. Dividends
End of Q1

End of Q2

Annual Dividend
End of Q3

Year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ended March 31, 2017



11.00



17.00

28.00

Year ending March 31, 2018



14.00

Year ending March 31, 2018

28.00
14.00
(Forecast)(Note) Revisions to most recently announced dividend forecasts: No(Note) The breakdown of the year-ended March 31, 2017 dividen were ordinary dividend of 11 yen andcommemorative dividend of 6 yen.
Capital surplus is included in dividend resources for fiscal 2017. For details, please refer to "Breakdown of dividends

1

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017with capital surplus as dividend fund" below.

3. Consolidated Earnings Forecasts for the Year Ending March 31, 2018 (April 1, 2017 to March 31, 2018)(% 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

(11.1)

6,450(12.1)

50.88%

Year ending March
189,400
6.0
11,410 (10.5)
11,36031, 2018(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.: No
2) Changes in accounting policies other than 1): No
3) Changes in accounting estimates: No4) Restatements: No(4) Number of shares issued (common stock)
1) Shares issued at the end of each period (including treasury stock):

Q3 FY3/2018

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

Q3 FY3/2018

8,736,089 shares FY3/2017

12,915,785 shares

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

Q3 FY3/2018

128,826,506 shares Q3 FY3/2017

113,569,221 shares

139,679,977 shares FY3/2017

139,679,977 shares(Note) Board benefit trust shares(BBT) is included in the number of year-end treasury stock.(416,600 stocks at Q2 FY3/2018, 420,000
stocks at FY3/2017) 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 (417,341 shares for the Nine-months Ended December 31,
2017; 142,036 shares for the Nine months Ended December 31, 2016).

* 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.

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TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017

Breakdown of dividends with capital surplus as dividend resource
Of the dividends for the fiscal year ending March 31, 2017, the breakdown of dividends for capital surplus asdividend is as follows.
Reference dateYear-Ended

Total

Dividend per share (Yen)

0.79

0.79

Total dividends (Millions of yen)

100

100

(Note) Reduction ratio of net assets 0.003

3

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017

[Attachment]
Contents

1. Qualitative Information on Financial Results for the Period Under Review(1)

Explanation of Consolidated Operating Performance··············································································· 2(2)Explanation of Consolidated Financial Condition····················································································· 3(3)Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information ······························ 4

2. Quarterly Consolidated Financial Statements and Notes(1)

Quarterly Consolidated Balance Sheets ································································································ 5(2)Quarterly Consolidated Statements of Income, Consolidated Statements of Comprehensive Income ··············· 7(3)Quarterly Consolidated Statements of Cash Flows ·················································································· 9(4)Notes on Quarterly Consolidated Financial Statements ··········································································· 11(Notes on Premise of Going Concern) ······································································································ 11(Notes on Significant Changes in Shareholders’ Equity) ··············································································· 11(Additional Information) ·························································································································· 11(Segment Information, etc.) ··················································································································· 12

1

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017

1. Qualitative Information on Financial Results for the Period Under Review(1) Explanation of Consolidated Operating Performance

During the first nine months of the fiscal year ending March 31, 2018, the Japanese economy was on a gradual recovery
trend, with an upturn in consumer spending and some improvement in employment conditions. However, the general
economic outlook remains clouded due to uncertainties in overseas economies, such as U.S. policy developments and therisk of weaker-than-expected performance of emerging economies in Asia stemming from regional political instability.
As set out in the TOKAI Group’s new medium-term management plan Innovation Plan 2020 “JUMP,” the Group seeks toadvance further by pursuing growth strategies such as increasing the number of continuing customers, capturing crossselling opportunities based on the Total Life Concierge (TLC) concept, expanding service areas to broaden sales channels,
M&A activities, and moving into new business areas. As a result of these measures, the number of continuing customers
increased by 275 thousand from March 31, 2017 to 2,839 thousand and members of the TLC Membership Service
increased by 83 thousand to 669 thousand.
Under these conditions, in the nine months ended December 31, 2017, the Group booked sales of 133,336 million yen(up 4.6% year-on-year). However, a rise in costs to acquire customers and prevent service cancellations among otherfactors affected profits, and the Group posted operating profit of 6,579 million yen (down 19.7%), recurring profit of 6,662
million yen (down 19.2%), and quarterly net income attributable to owners of the parent of 3,435 million yen (down 29.2%).

Performance by segment was as follows.

(Gas and Petroleum)
In the liquefied petroleum gas (LP gas) business, in the nine months ended December 31, 2017, the Group focused onincreasing the customer count amid intensifying competition, including efforts to attract new customers and prevent service
cancellations in established areas, and start services in new areas. As a result, the number of customers rose by 11
thousand from March 31, 2017, to 599 thousand and LP gas sales volume increased year-on-year. The unit sales price alsorose due to higher purchase prices. Consequently, sales of the LP gas business came to 44,888 million yen (up 3.5% yearon-year).
In the city gas business, the number of customers was 54 thousand, unchanged from the level as of March 31, 2017, but
sales rose 4.4% year-on-year to 8,257 million yen due to a higher unit sales price stemming from the fuel cost adjustment
regulations and other factors.
As a result, segment sales came to 53,145 million yen (up 3.6% year-on-year), but operating profit was down 47.3% to
2,076 million yen because of an increase in costs to acquire new customers and prevent service cancellations.

(Building and Real Estate)
In the Building and Real Estate business, renovation, housing sales, and other projects declined, but projects such as
facilities-related construction and building management support services increased year-on-year. As a result, segment
sales were 13,491 million yen (up 4.4% year-on-year) and operating profit was 189 million yen (up 10.1%).

(CATV)In the CATV business, in addition to preventing existing customers from canceling services, the Company worked on
measures such as sales of set discount offerings for broadcasting and communications, and smartphone set discounts
through alliances with major mobile phone carriers. The Company also stepped up efforts to improve its broadcasting
service by offering more local information programs and progressing the transition to fiber optics compatible with 4K
broadcasts. In telecommunications, the Company launched a new ultrafast fiber-optic service offering a maximum speed of
10Gbps. It expanded and improved services to increase customer satisfaction.

2

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017

The addition of acquired company Tokyo Bay Network Co., Ltd.’s 250 thousand customers (235 thousand broadcastingand 15 thousand telecommunications customers) meant a sharp increase from March 31, 2017 of 243 thousand customers
for the Company’s broadcasting services to 751 thousand and an increase of 25 thousand customers for its
telecommunications services to 251 thousand.
Due to an increase in subscribers, segment sales totaled 20,871 million yen (up 10.4% year-on-year), and operating profit
was 2,376 million yen (up 31.2%).

(Information and Communications Services)
In the broadband business for individual customers, the Company worked to acquire new customers and actively
encouraged existing customers to switch to Hikari Collaboration services. As a result, the number of Hikari Collaboration
customers increased by 20 thousand from March 31, 2017, to 319 thousand. However, the total number of FTTH
customers fell by 23 thousand to 697 thousand due to increased competition from major mobile phone carriers. This,
combined with contract cancellations by ADSL and other customers, led to a decrease of 30 thousand broadband
customers to 764 thousand. Meanwhile, the number of customers of the LIBMO MVNO service launched in February 2017came to 21 thousand as of December 31, 2017. As a result, segment sales totaled 23,732 million yen (down 0.2% year-onyear).
For corporate customers, growth of businesses with recurring revenue and an increase in orders for systems
development led to a 12.9% year-on-year increase in sales to 14,028 million yen.
Due to these factors, segment sales came to 37,760 million yen (up 4.3% year on year), but operating profit was 1,446
million yen (down 32.6%) due to an increase in promotional spending on the MVNO business and others.

(Aqua)In the Aqua business, the Company raised prices of some products to cover the increase in distribution costs, but also
continued to push forward with customer acquisition activities for Oishii Mizu no Okurimono - ulunom “the Gift of Delicious
Water” brand, mainly targeting large-scale commercial facilities at metropolitan areas. Consequently, the Company
succeeded in increasing the number of customers to 143 thousand, up by eight thousand from March 31, 2017.
As a result, segment sales came to 4,652 million yen (up 5.9% year-on-year), but operating profit fell 67.9% to 46 million
yen due to an increase in customer acquisition costs.

(Others)
In the nursing care business, an increase in the number of users led to sales of 778 million yen (up 19.4% year-on-year).
In the shipbuilding business, sales were down 8.2% year-on-year to 972 million yen on a decrease in the number of ships
repaired. In the bridal events business, sales were down 22.6% year-on-year to 1,131 million yen due to the closure of
wedding venue Vrai Cloche Bouquet Tokai Mishima at the end of March 2017.
Due to these factors, segment sales came to 3,415 million yen (down 7.9% year-on-year), but operating profit was 163
million yen (up 1141.7% year-on-year) as a result of improved profitability.

(2) Explanation of Consolidated Financial Condition
1) Assets, Liabilities, and Net Assets
Total assets amounted to 165,897 million yen as of December 31, 2017, down by 4,785 million yen from March 31, 2017.
This is primarily due to an increase in property, plant and equipment of 2,014 million yen from making Tokyo Bay Network
Co., Ltd. a consolidated subsidiary, an increase in investment securities (included in Other under Investments and otherassets) of 1,083 million yen mainly owed to higher stock prices, and a 755 million yen increase in work in progress due to arise in the number of construction projects.
Total liabilities were 106,672 million yen, up 2,006 million yen from March 31, 2017, despite a 2,638 million yen decrease
in income taxes payable from filing tax returns and paying income tax for the previous fiscal year. The increase is mainly due
to a 3,374 million yen increase in interest-bearing debt due to a rise in short-term loans payable and other factors, and a
1,092 million yen increase in Current liabilities (Other) from a rise in advances received and accounts payable-other among

3

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017

other factors.
As of December 31, 2017, net assets totaled 59,224 million yen, up 2,778 million yen from March 31, 2017. Although theGroup paid 4,001 million yen in dividends from surplus, it booked 3,435 million yen in net income attributable to owners of
the parent and a 2,400 million yen increase in asset from the conversion of convertible bonds with stock acquisition rights
and other factors.

2) Cash Flows
Cash and cash equivalents (hereinafter referred to as “funds”) at December 31, 2017 totaled 3,667 million yen, up 555
million yen from March 31, 2017.
Cash flows from each activity during the nine months under review and the factors behind them are as follows.

(Cash flows from operating activities)
Net cash provided by operating activities was 12,295 million yen (down 4,786 million yen year-on-year).
Funds increased chiefly due to quarterly net income before income taxes and the effect of depreciation (non-cash items).

(Cash flows from investing activities)
Net cash used in investing activities was 9,655 million yen (down 2,725 million yen year-on-year). This is mainly due to thepurchase of tangible and intangible fixed assets and the purchase of shares in a subsidiary resulting in the change in scopeof consolidation.

(Cash flows from financing activities)
Net cash used in financing activities was 2,081 million yen (up 9,180 million yen year-on-year). Cash was mainly used forthe payment of dividends.
Additionally, cash flows from financing activities increased substantially year-on-year. This was mainly due to an increasein short-term loans payable.

(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information
Earnings results for the nine months ended December 31, 2017 were generally in line with forecasts, and the Company
maintains its consolidated earnings forecasts for the fiscal year ending March 31, 2018, announced on May 9, 2017.
Forecasts are judgments based on currently available information. Actual performance may differ from forecasts due to avariety of factors going forward.

4

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017

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

Nine Months Ended

March 31, 2017

December 31, 2017

AssetsCurrent assets
Cash and deposits

3,239

3,807

Notes and accounts receivable–trade

22,83822,427

Merchandise and finished goods

3,676

3,758

Work in process

645

1,401

Raw materials and supplies

737

833

Other

7,789

8,488

Allowance for doubtful accounts

(332)

(321)

Total current assets

38,59440,395

Buildings and structures, net

33,71833,996

Machinery, equipment and vehicles, net

21,84822,563

Land

22,63422,786

Other, net

15,446

16,314

Total property, plant and equipment

93,647

95,661

Goodwill

5,861

5,589

Other

5,127

5,633

Total intangible assets

10,988

11,222

Net defined benefit asset

2,397

2,457

Other

15,895

16,796

Allowance for doubtful accounts

(432)

(642)

Total investments and other assets

17,86018,611

122,496

125,49621

4

161,112

165,897

Non-current assets
Property, plant and equipment

Intangible assets

Investments and other assets

Total non-current assets
Deferred assets
Total assets

5

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017

(Millions of yen)
Fiscal Year Ended

Nine Months Ended

March 31, 2017

December 31, 2017

Liabilities
Current liabilities
Notes and accounts payable–trade

14,77915,372

Short-term loans payable

22,91230,877

Current portion of bonds

578

358

Income taxes payable

3,484

845

Accruals

1,695

244

Other

17,854

18,946

Total current liabilities

61,304

66,644406

462

Convertible bonds with stock acquisition rights

2,800

-

Long-term loans payable

27,44025,814

Accruals

101

128

Net defined benefit liability

364

503

Other

12,24913,119Total non-current liabilities

43,36140,027

104,665

106,672

Capital stock

14,00014,000Capital surplus

24,28625,524Retained earnings

15,048

14,582

Treasury stock(3,285)(2,223)

Total shareholders’ equity

50,04851,883

2,126

3,317

Deferred gains (losses) on hedges

720

306

Foreign currency translation adjustment

(9)

(6)

Remeasurement of defined benefit plans

2,768

2,628

Total accumulated other comprehensive income

5,605

6,246

791

1,094

56,44659,224

161,112

165,897

Non-current liabilities
Bonds payable

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Non-controlling interests
Total net assets
Total liabilities and net assets

6

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017(2) Quarterly Consolidated Statements of Income, Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Nine Months Ended December 31, 2017)(Millions of yen)
Nine Months Ended
December 31, 2016
(April 1, 2016 to
December 31, 2016)

Nine Months Ended
December 31, 2017
(April 1, 2017 to
December 31, 2017)

Sales

127,432

133,336

Cost of sales

75,055

79,175Gross profit

52,37754,160

Selling, general and administrative expenses

44,18347,581

Operating profit

8,193

6,579

Interest income

87Dividend income

174

191

Commission fee

62

65

Other

314

242

Total non-operating profit

560

508

Interest expenses

412

336

Other

95

88

Total non-operating expenses

507

424

8,246

6,662

Gain on sales of non-current assets

52Transmission line facility subsidies

1850

Subsidy income

2-

Gain on reversal of subscription rights to shares

98-

Total extraordinary income

125

52

0

0

502

605

Impairment loss (★減損損失)-

15

Loss on valuation of investment securities-

15

Loss on step acquisitions-

105

Total extraordinary losses

502

741

Quarterly net income before income taxes

7,869

5,973

Income taxes (current)

2,346

1,734

Income taxes (deferred)

612

726

Total income taxes

2,959

2,460

Quarterly net income

4,910

3,512

Quarterly net income attributable to non-controlling interests

59

77

Quarterly net income attributable to owners of the parent

4,850

3,435

Non-operating profit

Non-operating expenses

Recurring profit
Extraordinary income

Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets

7

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017

(Consolidated Statements of Comprehensive Income)(Nine Months Ended December 31, 2017)(Millions of yen)
Nine Months Ended
December 31, 2016
(April 1, 2016 to
December 31, 2016)
Quarterly net income

Nine Months Ended
December 31, 2017
(April 1, 2017 to
December 31, 2017)

4,910

3,512

Other comprehensive income
1,131

1,190

Deferred gains (losses) on hedges

996

(413)

Foreign currency translation adjustment

(20)

(0)

Remeasurement of defined benefit plans, net of tax

(114)

(139)

(18)

4

1,974

640

6,884

4,152

6,823

4,075

60

77

Valuation difference on available-for-sale securities

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

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)
Nine Months Ended Nine Months Ended
December 31, 2016 December 31, 2017
(April 1, 2016 to(April 1, 2017 to

December 31,

December 31,

2016)

2017)

Cash flows from operating activities
Quarterly net income before income taxes

7,869

5,973

Depreciation

10,825

10,589

904

883

-

15

(1,233)(1,244)

Increase (decrease) in net defined benefit asset and liability

(189)

(228)

Interest and dividend income

(183)

(199)

Interest expenses

412

336

(Gain) loss on sales of non-current assets

(5)

(1)

Amortization of goodwill
Impairment loss
Increase (decrease) in provision for bonuses

-

15

502

605

-

105

739

1,214

Decrease (increase) in inventories

(469)

(954)

Increase (decrease) in notes and accounts payable – trade

(391)

484

Other

1,503

40

Subtotal

20,282

17,633

Income taxes paid

(3,200)(5,338)Net cash provided by (used in) operating activities

17,082

12,295Interest and dividend income received

228

249

Purchase of securities

(11)

(131)

(7,259)(8,749)

150

161

-

(1,175)

47

35

(84)

(45)

(6,929)(9,655)Interest expenses paid

(412)

(339)

Net increase (decrease) in short-term loans payable

(650)

8,725

(3,008)(2,762)

Proceeds from long-term loans payable

4,950

6,607

Repayment of long-term loans payable(9,653)(9,493)

(379)

(444)

Redemption of Convertible bond-type bonds with subscription rights to shares

-

(400)

Proceeds from share issuance to non-controlling shareholders-

20(Gain) loss on valuation of investment securities
Loss on retirement of non-current assets(Gain) loss on step acquisitions
Decrease (increase) in notes and accounts receivable – trade

Cash flows from investing activities

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
Collection of loans receivable
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities

Repayments of lease obligations

Redemption of bonds

9

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017

Payments for acquisition of treasury stock

(262)

(1)

Proceeds from disposal of treasury shares384

0(2,146)(3,987)(84)(5)(11,261)(2,081)0(3)(1,108)555

Cash and cash equivalents at beginning of period

4,044

3,111

Cash and cash equivalents at end of period

2,935

2,667

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

10TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017(4) Notes on Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.

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

(Additional Information)(Board Benefit Trust (BBT))(1)

Overview of Transactions
At a Board of Directors Meeting held on May 10th, 2016, the Company approved the introduction of a board

benefit trust (BBT) plan as a new stock-based compensation system (hereinafter referred to as “the System”) for theCompany’s Directors, Executive Officers, Administrative Officers, and the Directors and Administrative Officers ofsome of the Company’s subsidiaries (excluding Outside Directors; hereinafter referred to as “Executives”). This
Executive compensation was approved at the 5th Annual General Meeting of Shareholders held on June 24, 2016.
The System is a stock-based compensation system in which the Company will acquire the shares of theCompany using funds the Company first contributes. The Company’s shares and the amount of cash equivalent to
the market price of the Company’s shares as of the date of the Executive’s retirement (hereinafter referred to as the“Company’s Shares, etc.”) will be provided through the trust to the Executives in accordance with executive stockbased compensation rules stipulated by the Company and subsidiaries of the Company covered by the System. In
principle, Executives shall receive the Company’s Shares, etc. upon their retirement.
The Company has applied the gross method for this transaction in accordance to “Practical Solution on
Transactions of Delivering the Company’s Own Stock to Employees etc. through Trusts” (ASBJ PITF No. 30, March
26, 2015).
(2)

Company stock remaining in the trust
The Company is recording Company stock which remains in the trust as treasury stocks under net assets at bookvalue (excluding attached expenses). The book value of such Company stocks was 261 million yen as of March 31,
2017, 258 million yen as of December 31, 2017. The number of stock was 420 thousand shares as of March 31, 2017,
416 thousand shares as of December 31, 2017.

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TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2017

(Segment Information, etc.)[Segment Information]
I. Nine Months Ended December 31, 2016 (April 1, 2016 to December 31, 2016)
Sales and Income of Losses by Reportable Segment
Reportable segments
Building
Information
Other1
Gas and
and
and
CATV
Aqua Subtotal
Petroleum Real
CommuniEstatecations
Sales
Sales toexternalcustomers
Intersegment
sales andtransfers
Subtotal
Segment income(loss)

51,291 12,926

18,901

36,212

1,243

591

2,285

51,421 14,169

19,49238,4984,471128,053

3,937

1,811

2,147

145

129

171

4,391123,723

79

4,329

8,213

Total Adjustments2

3,708 127,432(Millions of yen)Amount inquarterly
consolidated
statements ofIncome3-

127,432

4,469(4,469)-3,849 131,902(4,469)127,432

(33)

8,193

140

13

8,226

(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, 2017 (April 1, 2017 to December 31, 2017)
Sales and Income of Losses by Reportable Segment(Millions of yen)
Reportable segments
Building
Information
Other1
Gas and
and
and
CATV
Aqua Subtotal
Petroleum Real
CommuniEstatecations

Total

Amount in quarterly
consolidated
Adjustments
statements ofIncome3
2

Sales
Sales toexternalcustomers
Intersegment
sales andtransfers

53,145 13,491 20,871

141

914

585

37,760 4,652 129,920

2,219

82

3,942

Subtotal

53,286 14,406 21,456

39,979 4,735 133,863

Segment income(loss)

2,076

1,446

189

2,376

46

6,135

3,415 133,336-

133,336

4,083(4,083)-3,556 137,420(4,083

133,336

280

6,579

140

163

6,299

(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.

12