Consolidated Financial Results for the Third Quarter of the
Fiscal Year Ending March 31, 2019 [Japanese GAAP]
January 31, 2019
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 13, 2019
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, 2018
(April 1, 2018 to December 31, 2018)(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
7,038
7,247
8.8
3,966
137,943
3.5
7.0
December 31, 2018
Nine months Ended
4.6
6,579
(19.7)
6,662 (19.2)
3,435
133,336
December 31, 2017
(Note) Comprehensive income: 1,864 million yen in the Nine-months Ended December 31, 2018 (-55.1%)
4,152 million yen in the Nine months Ended December 31, 2017 (-39.7%)
Quarterly Net Income
per Share
Nine-months Ended
December 31, 2018
Nine months Ended
December 31, 2017%15.5
(29.2)

Quarterly Net Income
per Share (Diluted)

Yen

Yen

30.29

-

26.66

26.16

(2) Consolidated Financial Position
Total Assets

Net Assets

Millions of yen

Millions of yen

Equity Ratio%

Nine-months Ended
167,035
59,631
December 31, 2018Year ended
165,993
61,450March 31, 2018
(Reference) Equity: 58,400 million yen for the Nine-months Ended December 31, 201860,320 million yen for the year ended March 31, 2018

35.0
36.3

(Note) "Partial revision ofthe Accounting Standard for Tax Effect Accounting "(ASBJ Statement No. 28, February 16, 2018) has been applied
from the beginning of the first quarter consolidated accounting period. The consolidated financial position for the consolidated fiscal year is thefigure after applying it retroactively.

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, 2018



14.00



14.00

28.00

Year ending March 31, 2018



14.00


14.00

28.00

Year ending March 31, 2018
(Forecast)(Note) Revisions to most recently announced dividend forecasts: No

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

24.0

7,920

19.6

60.48

%

Year ending March
195,600
5.1
13,96027.2
13,88031, 2019(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 FY3/2019

139,679,977 shares FY3/2018

139,679,977 shares

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

Q3 FY3/2019

8,731,326 shares FY3/2018

8,736,412 shares

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

Q3 FY3/2019

130,946,547 shares Q3 FY3/2018

128,826,506 shares(Note) Board benefit trust shares(BBT) is included in the number of year-end treasury stock.(410,800 stocks at Q3 FY3/2019, 416,600
stocks at FY3/2018) 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 (413,352 shares for the Nine-months Ended December 31,
2019; 417,341 shares for the Nine months Ended December 31, 2018).

* 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, 2018

[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 to Quarterly Consolidated Financial Statements ············································································ 11(Notes to Premise of Going Concern) ······································································································· 11(Notes to 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, 2018

1. Qualitative Information on Financial Results for the Period Under Review(1) Explanation of Consolidated Operating Performance
In the first nine months of the fiscal year ending March 31, 2019, the Japanese economy was on a gradual recovery path,with an upturn in personal consumption and steady improvement in employment conditions. However, the economic
outlook remains clouded due to uncertainty in the overseas economy including trade friction.
The current fiscal year ending March 31, 2019 is the second year of TOKAI Group’s medium-term management plan
Innovation Plan 2020 “JUMP.” In the first nine months under review, the Group continued to cultivate existing businesses,
conduct M&A, and participate in new businesses to strengthen its business foundation. In September 2018, the Groupmade CYZE Inc., a provider of in-house developed survey systems mainly in the online research field, a consolidated
subsidiary. In October, the transfer of gas business operations in Shimonita-machi, Gunma Prefecture, was approved by
the Kanto Bureau of Economy, Trade and Industry. And, in November, the Group concluded a business alliance agreementwith TOELL Co., Ltd., pertaining to delivery operations of drinking water delivery service.
In addition to realizing its existing vision of becoming a Total Life Concierge (TLC)*1, the Group began rolling out initiatives
focused on utilizing new service technologies with an eye toward next generation, ABCIR+S*2, in the current fiscal year. In
October 2018, the Group launched the provision of a smartphone app targeting improved convenience for the TLC
Membership services.
In the nine months ended December 31, 2018, the Group successfully increased orders by promoting measures toacquire customers. As a result, the Group booked sales of 137,943 million yen (+3.5% year on year) and posted significant
growth in all profit categories, with operating profit of 7,038 million yen (+7.0% year on year), recurring profit of 7,247 million
yen (+8.8% year on year), and quarterly net income attributable to owners of the parent of 3,966 million yen (+15.5% year
on year).
As of December 31, 2018, the number of continuing customers increased by 22 thousand from March 31, 2018 to 2,898
thousand, and members of the TLC Membership Service increased by 84 thousand to 783 thousand.

*1 Vision of becoming a TLC: The Group seeks to support comfortable living of customers in a comprehensive and detail-oriented way
through various services it offers, with an aim of enhancing customer satisfaction.
*2 ABCIR+S: An acronym formed by the first letters of AI, Big data, Cloud, IoT, Robotics, and Smartphones. It refers to the Group’s
strategy for technological reform.

Performance by segment was as follows.

(Gas and Petroleum)
In the liquefied petroleum gas (LP gas) business, the Group focused on increasing the customer count amid intensifying
competition, through 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 13 thousand from March 31, 2018 to 620 thousand.
Sales of the LP gas business rose 2.0% year on year to 45,790 million yen partly due to a higher unit sales priceaccompanying an increase in raw material prices.
In the city gas business, the number of customers was 55 thousand, unchanged from the level of March 31, 2018, but
sales rose 7.6% year on year to 8,885 million yen on a higher unit sales price stemming from the fuel cost adjustment
regulations among other factors.
As a result, segment sales increased 2.9% year on year to 54,675 million yen, with the segment posting operating profit of
1,214 million yen (-41.5% year on year) on lower LP gas sales volume due to higher temperatures and increased
procurement costs.

(Building and Real Estate)
In the Building and Real Estate business, renovation and building construction projects increased. As a result, segment
sales were 13,846 million yen (+2.6% year on year) and operating profit was 435 million yen (+130.3% year on year).

2

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2018

(CATV)In the CATV business, the Group aimed to increase the customer count through enhanced price competitiveness in theform of discounts offered to customers signing up for broadcasting and communications packaged services, and discounts
for smartphone-related packaged services through alliances with major mobile phone carriers, and worked to prevent service
cancellations. The Group also worked to improve customer satisfaction in the following areas. In broadcasting services, it
broadcasted programs with extensive regional information, and promoted a switch to fiber-optic services, including support
for 4K broadcasting, which was launched in December 2018. In telecommunications services, the Group launched a new
ultra-high-speed fiber-optic network service with a maximum speed of 10Gbps. As a result of such measures, subscribers tothe broadcasting service rose by 10 thousand from March 31, 2018 to 785 thousand, and those to the telecommunications
service increased by 13 thousand to 270 thousand.
The number of subscribers grew steadily in existing areas as well as from M&A activities conducted in the previous fiscal
year, resulting in segment sales of 22,829 million yen (+9.4% year on year) and operating profit of 3,194 million yen (+34.4%
year on year).

(Information and Communications Services)
In consumer-oriented services, amid intensifying competition from major mobile carriers, the number of Hikari
Collaboration customers increased by five thousand from March 31, 2018 to 328 thousand. However, the number ofcustomers for conventional internet service providers (ISPs) fell by 35 thousand to 430 thousand. Meanwhile, the numberof customers in the TOKAI-brand MVNO service LIBMO rose by 11 thousand to 39 thousand. As a result, segment sales
totaled 23,218 million yen (-2.2% year on year).
In corporate services, growth of recurring-revenue operations and an increase in contracted system development
projects led to a 5.1% year-on-year increase in sales to 14,740 million yen.
Due to these factors, segment sales came to 37,959 million yen (+0.5% year on year), and operating profit was 1,693
million yen (+17.1% year on year).

(Aqua)In the Aqua business, the Group continued to push forward with customer acquisition activities for “The gift of delicious
water: Ulunom” brand, mainly targeting large-scale commercial facilities. Consequently, the Group succeeded in increasing
the number of customers to 157 thousand, up by 11 thousand from March 31, 2018. Efforts were also made to curtail
distribution costs through a business alliance with TOELL Co., Ltd.
As a result, segment sales came to 5,279 million yen (+13.5% year on year) and operating profit to 351 million yen(+653.7% year on year).

(Others)
In the nursing care business, an increase in the number of users led to sales of 806 million yen (+3.7% year on year). In
the shipbuilding business, sales were down 3.6% year on year to 937 million yen on a decrease in work volume for ship
repairs. In the bridal events business, sales were down 4.4% year on year to 1,081 million yen on a decline in the number
of wedding ceremonies.
Consequently, the segment posted sales of 3,352 million yen (-1.8% year on year) and operating profit of 103 million yen(-37.0% year on year).

(2) Explanation of Consolidated Financial Condition
1) Assets, Liabilities, and Net Assets
As of December 31, 2018, total assets amounted to 167,035 million yen, up 1,042 million yen from March 31, 2018. This
primarily reflected to a 1,225 million yen decrease in the “other” category within investments and other assets owing to adecrease in valuation difference on investment securities, a 1,509 million yen increase in the “other” category within current
assets due to an increase in guarantee deposits, and a 968 million yen rise in cash and deposits.
Total liabilities were 107,404 million yen, up 2,860 million yen from March 31, 2018. This was mainly due to an increase of3

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2018

8,378 million yen in short-term loans payable, offsetting decreases of 1,994 million yen in income taxes payable resulting
from income tax payments, 1,453 million yen in “provision” within current liabilities due to payment of bonuses, and 1,296
million yen in notes and accounts payable–trade owing to seasonal factors.
Net assets totaled 59,631 million yen, down 1,818 million yen from March 31, 2018. The decrease was primarily
attributable to a 1,082 million yen decline in valuation difference on available-for-sale securities and a 966 million yen drop in
deferred gains or losses on hedges.

2) Cash Flows
Cash and cash equivalents (hereinafter referred to as “funds”) at December 31, 2018 totaled 3,964 million yen, up 960
million yen from March 31, 2018.
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 9,813 million yen (down 2,482 million yen year on year). Funds increased
chiefly due to quarterly net income before income taxes and the effect of depreciation and amortization expenses (non-cash
items).

(Cash flows from investing activities)
Net cash used in investing activities was 9,615 million yen (up 39 million yen year on year). This was mainly due to thepurchase of property, plant and equipment and intangible assets.

(Cash flows from financing activities)
Net cash provided by financing activities was 762 million yen (up 2,843 million yen year on year) as funds procured fromshort-term loans payable offset repayment of lease obligations and payment of dividends.

(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information
Earnings results for the nine months ended September 30, 2018 were generally in line with forecasts, and the Group
maintains its consolidated earnings forecasts for the fiscal year ending March 31, 2019, which was announced on May 8,
2018.
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, 2018

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

Nine Months Ended

March 31, 2018

December 31, 2018

AssetsCurrent assets
Cash and deposits

3,143

4,111

Notes and accounts receivable–trade23,80623,282Merchandise and finished goods

3,723

4,169

Work in process

849

1,363

Raw materials and supplies

817

828

Other

7,990

9,500

Allowance for doubtful accounts

(379)

(358)

Total current assets

39,95142,897

Buildings and structures, net

34,28033,410Machinery, equipment and vehicles, net

23,09623,057

Land

22,842

22,916

Other, net

16,591

16,779Total property, plant and equipment

96,81096,163

Goodwill

5,430

5,125

Other

5,767

6,023

Total intangible assets

11,198

11,148Net defined benefit asset

2,650

2,710

Other

15,898

14,672

Allowance for doubtful accounts

(518)

(560)

Total investments and other assets

18,03016,822126,038

124,134

3

3

165,993167,035

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, 2018

(Millions of yen)
Fiscal Year Ended

Nine Months Ended

March 31, 2018

December 31, 2018

Liabilities
Current liabilities
Notes and accounts payable–trade

15,67014,373

Short-term loans payable

23,672

32,051

Current portion of bonds

198

168

Income taxes payable

2,966

972

Accruals

1,657

204

Other

19,54019,500Total current liabilities

63,70567,270398

294

26,711

25,967

Accruals

132

113

Net defined benefit liability

575

702

Other

13,02013,055

Total non-current liabilities

40,837

40,133

104,543

107,404

Capital stock

14,00014,000Capital surplus

25,52525,527

Non-current liabilities
Bonds payable
Long-term loans payable

Total liabilities
Net assets
Shareholders’ equity

Retained earnings

17,76818,057

Treasury stock(2,223)(2,222)

Total shareholders’ equity

55,06955,361

2,548

1,465

Deferred gains (losses) on hedges

－

-966

Foreign currency translation adjustment

(3)

(4)

Remeasurement of defined benefit plans

2,706

2,543

Total accumulated other comprehensive income

5,250

3,038

Non-controlling interests

1,130

1,231

Total net assets

61,45059,631

165,993167,035

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

Total liabilities and net assets

6

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2018

(2) Quarterly Consolidated Statements of Income, Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Nine Months Ended December 31, 2018)(Millions of yen)
Nine Months Ended
December 31, 2017
(April 1, 2017 to
December 31, 2017)

Nine Months Ended
December 31, 2018
(April 1, 2018 to
December 31, 2018)

Sales

133,336

137,943

Cost of sales

79,17583,616Gross profit

54,16054,327

Selling, general and administrative expenses

47,58147,289Operating profit

6,579

7,038

Interest income

7

6

Dividend income

191

180

Commission fee

65

69

Other

242

295

Total non-operating profit

508

552

Interest expenses

336

278

Other

88

63

Total non-operating expenses

424

342

6,662

7,247

Gain on sales of non-current assets

20Transmission line facility subsidies

50

105

Subsidy income-

5Gain on reversal of subscription rights to shares

-

0

52

111

0

0

605

504

Impairment loss

15

14

Loss on valuation of investment securities

15

45

Loss on step acquisitions

105

-

-

37

741

602

Quarterly net income before income taxes

5,973

6,756

Income taxes (current)

1,734

1,934

Income taxes (deferred)

726

746

Total income taxes

2,460

2,681

Quarterly net income

3,512

4,075

Quarterly net income attributable to non-controlling interests

77

108

Quarterly net income attributable to owners of the parent

3,435

3,966

Non-operating profit

Non-operating expenses

Recurring profit
Extraordinary income

Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets

Other
Total extraordinary losses

7

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2018

(Consolidated Statements of Comprehensive Income)(Nine Months Ended December 31, 2018)(Millions of yen)
Nine Months Ended
December 31, 2017
(April 1, 2017 to
December 31, 2017)
Quarterly net income

Nine Months Ended
December 31, 2018
(April 1, 2018 to
December 31, 2018)

3,512

4,075

Valuation difference on available-for-sale securities

1,190(1,082)

Deferred gains (losses) on hedges

(413)

(966)

(0)

2

(139)

(162)

4

(2)

640

(2,211)

4,152

1,864

4,075

1,755

77

109

Other comprehensive income

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

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2018(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)
Nine Months Ended Nine Months Ended
December 31, 2017 December 31, 2018
(April 1, 2017 to(April 1, 2018 to
December 31, 2017) December 31, 2018)
Cash flows from operating activities
Quarterly net income before income taxes

5,973

6,756

Depreciation

10,58910,369Amortization of goodwill

883

859

Impairment loss

15

14

(1,244)(1,323)

Increase (decrease) in net defined benefit asset and liability

(228)

(225)

Interest and dividend income

(199)

(187)

-

(0)

Interest expenses

336

278

(Gain) loss on sales of non-current assets

(1)

(0)

(Gain) loss on valuation of investment securities

15

45

Loss on retirement of non-current assets

605

504

(Gain) loss on step acquisitions

105－

Decrease (increase) in notes and accounts receivable – trade

1,214

610

Decrease (increase) in inventories

(954)

(968)

1

(1,664)

Increase (decrease) in notes and accounts payable – trade484(1,379)

Other

39

(641)

Subtotal

17,633

13,046

Income taxes paid

(5,338)(3,233)

Net cash provided by (used in) operating activities

12,295

9,813Interest and dividend income received

249

226

Purchase of securities

(131)

(310)

－

0

(8,749)(9,537)161

171(1,175)(202)

Payments of loans receivable

－

△200

Collection of loans receivable

35

14

Other

(45)

220

(9,655)(9,615)

Increase (decrease) in provision for bonuses

Loss (gain) on sales of investment securities

Decrease (increase) in guarantee deposits

Cash flows from investing activities

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

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

(339)

(281)

Net increase (decrease) in short-term loans payable

8,725

10,650

Repayments of lease obligations(2,762)(2,793)

Proceeds from long-term loans payable

6,607

5,800

Repayment of long-term loans payable(9,493)(8,815)

(444)

(134)

Redemption of bonds

9

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2018

(400)

－

Proceeds from share issuance to non-controlling shareholders

20－

Payments for acquisition of treasury stock

(1)

(0)

Proceeds from disposal of treasury shares

00(3,987)(3,654)(5)(7)(2,081)762

Effect of exchange rate change on cash and cash equivalents

(3)

(0)

Net increase (decrease) in cash and cash equivalents

555

960

Cash and cash equivalents at beginning of period

3,111

3,004

Cash and cash equivalents at end of period

2,667

3,964

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

Cash dividends paid
Other
Net cash provided by (used in) financing activities

10

TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2018(4) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.

(Notes on Significant Changes in Shareholders’ Equity)
Not applicable.
(Additional Information)(Application of "Partial Amendment to" Accounting Standard for Tax Effect Accounting ")"Partial revision ofthe Accounting Standard for Tax Effect Accounting "(ASBJ Statement No. 28, February 16, 2018) has been
applied from the beginning of the first quarter consolidated accounting period. The consolidated financial position for the
consolidated fiscal year is the figure after applying it retroactively.

(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 carrying value of such treasury stock is 259 million yen at the end of theprevious consolidated fiscal year and 255 million yen at the end of the third quarter consolidated accounting period.
The number of shares at the end of the treasury stock is 416,600 shares as of the end of the previous consolidated
fiscal year and 410,800 shares at the end of the third quarter consolidated accounting period.

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TOKAI Holdings Corporation (3167) Financial Results for the Nine months Ended December 31, 2018

(Segment Information, etc.)[Segment Information]
I. Nine Months Ended December 31, 2017 (April 1, 2017 to December 31, 2017)
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

53,145 13,491 20,871

141

914

37,760585

2,219

Subtotal

53,286 14,406 21,456

39,979Segment income(loss)

2,076

1,446

189

2,376

4,652 129,920

82

3,942

4,735 133,863
46

6,135

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

133,336

4,083(4,083)－3,556 137,420(4,083)

133,336

280

6,579

3,415 133,336

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.

II. Nine Months Ended December 31, 2018 (April 1, 2018 to December 31, 2018)
Sales and Income of Losses by Reportable Segment(Millions of yen)
Reportable segments
Building
Information
Other1and
Gas andand
CATV
Aqua Subtotal
Petroleum Real
CommuniEstatecations

Total

Amount in quarterly
consolidated
Adjustments
statements ofIncome3
2

Sales
Sales toexternalcustomers
Intersegment
sales andtransfers

54,675 13,846 22,829

147

772

553

37,959 5,279 134,590

2,293

97

3,863

Subtotal

54,822 14,619 23,382

40,252 5,377 138,454

Segment income(loss)

1,214

1,693

435

3,194

351

6,889

－

137,943

3,990(3,990)－3,478 141,933(3,990)137,94345

7,038

3,352 137,943

126

103

6,992

(Notes) 1. The “Other” category is a business segment not included in the reportable segments. This category includes businesses such as weddings,
ship repair, insurance, and nursing care.
2. Adjustments to segment income (loss) are mainly eliminations due to intersegment transactions.
3. Segment income (loss) is adjusted to match operating profit in the quarterly consolidated statements of income.

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