November 2, 2023

Consolidated Financial Results for the Six Months
Ended March 31, 2024 (Under Japanese GAAP)
Company name:Securities code:
Representative:
Inquiries:

TOKAI Holdings Corporation
Listing:
Tokyo Stock Exchange
3167
URL:
https://www.tokaiholdings.co.jp/english/
Katsuo Oguri, President & CEO
Junichi Yamada, Managing Executive Officer, General Manager of General Affairs Division
Headquarters Telephone: +81-54-275-0007
Scheduled date to file quarterly securities report:
November 13, 2023
Scheduled date to commence dividend payments:
November 30, 2023
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
Yes (for institutional investors and analysts)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the six months ended September 30, 2023
(from April 1, 2023 to September 30, 2023)(1) Consolidated operating results (cumulative)
Net sales
Six months ended(Percentages indicate year-on-year changes.)

Operating profit

Millions of yen%

Millions of yen

September 30, 2023

105,226

1.1

September 30, 2022

104,110

8.4

Note: Comprehensive income%

Millions of yen

4,254

0.0

4,355

79.1

4,523

-18.6

2,432

-54.0

For the six months ended September 30,2023:
For the six months ended September 30,2022:

Basic earnings
per share
Six months ended

Profit attributable toowners of parent

Ordinary profit%¥4,553 million¥1,117 million

Millions of yen%

2,219 1,403.4
147

-93.5

[307.5%][-65.6%]

Diluted earnings
per share
Yen

Yen

September 30, 2023

17.00

-

September 30, 2022

1.13

-

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

September 30, 2023

190,82084,80042.3

March 31, 2023

193,339

82,304

41.5

Reference:

EquityAs of September 30, 2023:
As of March 31, 2023:%¥82,608 million¥80,184 million

2. Cash dividends
Annual dividends per share
End of Q1

End of Q2

End of Q3

Year-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2023

-

16.00

-

16.00

32.00

Fiscal year ending March 31, 2024

-

16.00
-

16.00

32.00

Fiscal year ending March 31, 2024
(Forecast)
Note: Revisions to the forecast of cash dividends most recently announced: None1

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

Operating profit

Profit attributable toowners of parent

Ordinary profit

Net Income
per Share

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Yen

240,000

4.3

15,0000.5

15,000

12.9

8,500

31.5

65.10

*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:
None(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons:None(iii) Changes in accounting estimates:None(iv) Restatement:
None(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2023

139,679,977 shares

As of March 31, 2023

139,679,977 shares(ii) Number of treasury shares at the end of the period
As of September 30, 2023

9,054,519 shares

As of March 31, 2023

8,819,780 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Six months ended March 31, 2024

130,591,637 shares

Six months ended March 31, 2023
130,871,825 shares(Note) Board benefit trust shares (BBT) is included in the number of year-end treasury stock.(730,500 stocks at Q2 FYE3/2024,
782,100 stocks at FYE3/2023)
In addition, the treasury stock to be deducted in the calculation of the average number of shares during the period includes
the Company's stock held by the Board Benefit Trust (BBT) (764,618 stocks at Q2 FYE3/2024, 485,109 stocks at Q2
FYE3/2023).

* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants
or an audit corporation.
* 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 releaseof this document. Actual results may differ from forecasts due to various factors going forward.

2

[Attachment]
Contents

1． Qualitative Information on Financial Results for the Period Under Review(1) Explanation of Consolidated Operating Position ································································· 2(2) Explanation of Consolidated Financial Position ·································································· 3(3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information ················· 4
2． Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets············································································ 5(2) Quarterly Consolidated Statement of Income, Consolidated Statements of Comprehensive Income······ 7(3) Quarterly Consolidated Statements of Cash Flows ······························································· 9(4) Notes on Quarterly Consolidated Financial Statements ························································ 10(Notes on Going Concern Assumptions) ············································································· 10(Notes on Significant Changes in Shareholders’ Equity) ·························································· 10(Segment Information, etc.） ·························································································· 10

11. Qualitative Information on Financial Results for the Period Under Review(1) Explanation of Consolidated Operating Results
During the first six months of the fiscal year under review, the economy staged a mild recovery following
the normalization of economic activities and the effects of various packages. However, the businesscircumstances surrounding the Group included the accelerated depreciation of the Japanese currency and acontinued hike in energy prices amid the ongoing conflict in Ukraine. In addition, the outlook remained
uncertain with an increasingly severe labor shortage and rising prices.
In this environment, the Group developed Medium-Term Management Plan 2025 and announced it in May
2023. Aimed at achieving sustained growth, this plan has set out three key themes. The first is growth of
earning power, the second is strengthening of the foundations for sustainable growth, and the third is the fullenergization of human capital and organizations.
For the first six months of the fiscal year under review, the Group saw the number of continuing customers
rise by 28,000, to 3,328,000, compared with growth of 49,000 in the same period of the previous fiscal year.
The number of TLC members rose 30,000 to 1,188,000. For the same period a year earlier, the figure surged
36,000. With the increase in the number of customers in the Group and other factors, net sales stood at 105,226
million yen to exceed the level attained in the same period a year earlier by 1.1%. Meanwhile, operating profit
was almost unchanged year on year at 4,254 million yen, which is explained mainly by a decrease inhousehold unit consumption under high air temperature conditions. Ordinary profit stood at 4,355 million
yen, up 79.1% year on year, and profit attributable to owners of parent at 2,219 million yen, up 1,403.4% year
on year. Significant increases resulted mainly from a decrease in the burden arising from the share of profit
of entities accounted for using equity method.
Notable events during the first six months of the fiscal year under review include an investment made in
July 2023 by TOKAI Corporation in the group led by Pure Energy Holdings Corporation, which operates abusiness of generating power from renewable energy sources in the Philippines, as part of the initiatives toachieve carbon neutrality.
Another event is the new opening of a sales office for LP gas sales in the city of Ise in Mie Prefecture inAugust 2023. The office is making steady progress in expanding the business base.
Performance by segment is indicated below. From the first quarter of the fiscal year under review onwards,
a new order of statement of segments applies.
(Energy)In the LP gas business, the number of customers increased 16,000 from the end of the previous fiscal year,
to 762,000, reflecting sustained Group efforts to attract customers. Meanwhile, net sales were 34,417 million
yen (down 4.3% year on year). This is attributable to a reduction in selling prices in associated with thepurchase prices and a decrease in gas sales volume for households for reasons including high air temperatures.
In the city gas business, the number of customers remained at 75,000, the same level as the end of theprevious fiscal year. Net sales reached 8,535 million yen (up 5.3%) due to the effects of the gas rate adjustment
system.
In this segment, net sales stood at 42,952 million yen (down 2.5%) and operating loss at 740 million yen(operating loss of 216 million was posted for the same period in the previous fiscal year).
(Information and Communications)
In the business for consumers, 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 andintroduced package plans with fixed lines. As ⁠a result of these measures, the number of broadband customers
increased 1,000 from the end of the previous fiscal year to 666,000, while the number of LIMBO customers
rose 4,000 from end of the preceding fiscal year to 75,000. Net sales reached 12,100 million yen (up 0.6%
year on year).
In the business for corporate clients, net sales came to 15,356 million yen, up 9.3% year on year, reflecting
steady growth in career services and cloud services.
Net sales in this segment stood at 27,457 million yen (up 5.3%), and operating profit came to 2,125 million
yen (up 32.0%).
(CATV)In the CATV business, the Group focused on providing local information and the production of programs
as a community-based service provider. The Group collaborated with major video distributors and made otherefforts to enhance content. Due to aggressive sales activities, the broadcasting services customer count roseto 916,000, an increase of 3,000 from the end of the previous fiscal year. The communications services
customer count increased to 384,000, a rise of 11,000 from the end of the previous fiscal year.
2Net sales in this segment stood at 17,732 million yen (up 7.0%), and operating profit came to 2,795 million
yen (up 2.6%).
(Construction, Equipment, and Real Estate)
In the Construction, Equipment and Real Estate business, net sales stood at 10,943 million yen (down 4.7%
year on year), and operating profit at 203 million yen (down 10.6%). These results are attributable chiefly todelays in the receipt of orders for facility construction projects and for equipment sales.
(Aqua)In the Aqua (bottled drinking water delivery) business, the Group began dealing with pure water dispensers
in an effort to continuously expand its customer base. The Group also conducted marketing activities at eventsin large commercial facilities as well as non-face-to-face sales activities, including online promotion andtelemarketing. The number of customers grew 1,000 from the end of the previous fiscal year to 166,000.
Net sales in this segment stood at 3,883 million yen (up 1.2%), and operating profit came to 192 million
yen (up 140.3%).
(Others)
Net sales in the nursing care business stood at 697 million yen (up 0.4%), reflecting an increase in thenumber of users. In the ship repair business, net sales amounted to 637 million (up 9.6%) as the number ofships that the Group repaired soared. In the bridal events business, net sales reached 549 million yen (up37.9%), following a recovery in weddings and receptions.
As a consequence of these initiatives, net sales in this segment stood at 2,257 million yen (up 8.7% year onyear) with an operating loss of 47 million yen (compared with an operating profit of 23 million yen in thesame period of the previous fiscal year), reflecting a rise in costs associated with the ship repair business.
(2) Explanation of Consolidated Financial Position
1) Assets, Liabilities, and Net Assets
Total assets at the end of the first six months under review stood at 190,820 million yen, a decrease of 2,518
million yen from the end of the previous fiscal year. The decrease was attributable primarily to a decline of
7,677 million yen in notes and accounts receivable - trade and contract assets mainly for seasonal reasons,which was partially offset by an increase of 1,828 million in Other as part of current assets after a rise inderivative valuations, an increase of 1,463 million yen in Other as part of investments and other assets, anincrease of 1,009 million yen in property, plant and equipment and an increase of 896 million yen in cash
and deposits.
Total liabilities came to 106,020 million yen, a decrease of 5,014 million yen from the end of the previous
fiscal year. This was due to a fall of 4,367 million yen in notes and accounts payable-trade due to seasonaland other factors and a decline of 2,643 million yen in other in current assets, which were partially offset by
an increase of 1,756 million yen in short-term borrowings.
Total net assets were 84,800 million yen, an increase of 2,496 million yen from the end of the previous
fiscal year. This was chiefly due to profit attributable to owners of the parent posted at 2,219 million yen, an
increase of 1,490 million yen in deferred gains or losses on hedges and an increase of 760 million yen in thevaluation difference on available-for-sale securities despite dividends of surplus of 2,101 million yen.
2) Cash Flows
Cash and cash equivalents ("cash") as of September 30, 2023 were 5,086 million yen, an increase of 1,058
million yen from the end of the previous fiscal year.
Cash flows in the first six months under review and major contributing factors are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was 13,765 million yen (5,808 million yen higher year on year).
Cash inflows were attributable primarily to decreases in profit before income taxes and in trade receivables
and depreciation as a non-cash account title, which were partially offset by income taxes paid and a decreasein notes and accounts payable-trade, among other cash outflows.
Net cash used in operating activities increased substantially year on year. This is due mainly to a greater
decrease in trade receivables and to contracting increase in inventories and of income taxes paid.
(Cash flows from investing activities)
Net cash used in investing activities 9,704 million yen (2,843 million yen less year on year). The cash
outflows were attributable primarily to purchases of property, plant and equipment and intangible assets andto expenses for acquisition of securities.
3

(Cash flows from financing activities)
Net cash used in financing activities was 3,018 million yen (1,309 million yen less year on year). Loanspayable and other cash inflows were more than offset by cash outflows, including repayment of loans payable,
repayments of lease obligations and payment of cash dividends.
(3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information
Results in the first six months of the fiscal year under review were roughly as forecast. The earnings
forecasts for the fiscal year ending March 31, 2024 announced on May 9, 2023 remain unchanged.
The earnings forecasts are based on information available at the time of publication. Actual results may
differ from the forecasts due to a variety of factors.

4

1. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets
Fiscal Year Ended
March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Total assets

5(Millions of yen)
Six Months Ended
September 30, 2023

4,359
29,899
5,448
1,130
1,589
9,850
-454
51,824

5,256
22,222
5,360
1,572
1,522
11,679-440
47,172

36,18826,03824,841
23,316110,384

36,56326,067
24,88423,878111,394

5,904
4,588
10,492

5,814
4,404
10,219

4,092
16,785-243
20,634
141,5113
193,339

4,122
18,248-338
22,032
143,6453
190,820

Fiscal Year Ended
March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable–trade
Short-term borrowings
Income taxes payable
Other provisions
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Other provisions
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

6(Millions of yen)
Six Months Ended
September 30, 2023

19,801
15,7532,247
1,570
21,67361,046

15,43417,5092,007
1,815
19,02955,79630,855342
1,377
17,412
49,988111,034

30,758295
1,445
17,72350,223106,020

14,00025,56638,526-2,60175,492

14,00025,566
38,644-2,56175,650

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

2,218
1,490
916
2,332
6,958
50
2,141
84,800190,820

(2) Quarterly Consolidated Statements of Income, Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Six-months Ended September 30, 2023)

Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating profit
Interest income
Dividend income
Commission fee
Other
Total non-operating profit
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Other
Total non-operating expenses
Recurring profit
Extraordinary income
Gain on sales of non-current assets
Gain on sale of investment securities
Transmission line equipment subsidy
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Loss on valuation of investment securities
Total extraordinary losses
Quarterly net income before income taxes
Income taxes (current)
Income taxes (deferred)
Total income taxes
Quarterly net income
Quarterly net income attributable to non-controlling interests
Quarterly net income attributable to owners of the parent

7

Six Months Ended
September 30, 2022
(April 1, 2022 toSeptember 30, 2022)
104,11064,874
39,23634,982
4,253(Millions of yen)
Six Months Ended
September 30, 2023
(April 1, 2023 to
September 30, 2023)
105,226
64,71540,51036,255
4,254

10
122
14
192
339

5
133
13
172
325

132
1,963
64
2,160
2,432

147
37
39
224
4,355

27
64
60
3
156

167
－
23
2
193

0
401
314
716
1,873
1,614
22
1,637
236
88
147

－
597
33
630
3,918
1,831
-199
1,632
2,286
66
2,219

(Consolidated Statements of Comprehensive Income)(Six-months Ended September 30, 2023)

236(Millions of yen)
Six Months Ended
September 30, 2023
(April 1, 2023 to
September 30, 2023)
2,286

516
－
-2
-161

760
1,490
10
-159

529

165

881
1,117

2,267
4,553

1,025

4,486

91

67

Six Months Ended
September 30, 2022
(April 1, 2022 toSeptember 30, 2022)
Quarterly 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 equity method
Total other comprehensive income
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income attributable to owners of theparentQuarterly comprehensive income attributable to noncontrolling interests8(3) Quarterly Consolidated Statements of Cash Flows

Cash flows from operating activities
Quarterly net income before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in net defined benefit asset and liability
Interest and dividend income
Loss (gain) on sales of investment securities
Interest expenses
Share of loss (profit) of entities accounted for using equity method
Loss (gain) on sale of property, plant and equipment
Loss (gain) on valuation of investment securities
Loss on retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other
Subtotal
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Interest and dividend income received
Purchase of securities
Proceeds from sales of securities
Purchase of tangible and intangible assets
Proceeds from sales of tangible and intangible assets
Loan advances
Proceeds from collection of loans receivable
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Interest expenses paid
Net increase (decrease) in short-term loans payable
Repayments of lease obligations
Proceeds from long-term loans payable
Repayment of long-term loans payable
Payments for acquisition of treasury stock
Cash dividends paid
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

9

Six Months Ended
September 30, 2022
(April 1, 2022 toSeptember 30, 2022)(Millions of yen)
Six Months Ended
September 30, 2023
(April 1, 2023 to
September 30, 2023)

1,873
7,498
489
-204
-132
-64
132
1,963
-27
314
401
5,625
-2,471-2,310-1,992
11,094-3,137
7,956

3,918
7,800
483
-189
-139
－
147
37
-167
33
597
8,127
-26
-4,377-1,006
15,239-1,474
13,765172-1,15095-6,699
251
－
601
-132
-6,861165-1,014－-8,663
504
-560
6
-142
-9,704-135
2,300-2,2945,950-5,288-0-2,231-8-1,709
5
-608
4,447
3,838

-151
1,784
-2,417
5,400-5,525-0-2,099-9-3,018
16
1,058
4,028
5,086

(4) Notes on Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable(Notes on Significant Changes in Shareholders’ Equity)
Not applicable(Segment Information, etc.)
We have changed the order of the reporting segments from the first consolidated accounting period. As aresult, we have also changed the order of the reporting segments for the second consolidated cumulative
period in the same way.
[Segment Information]I.
Six Months Ended September 30, 2022 (April 1, 2022 to September 30, 2022)
Information on net sales and profit or loss by reportable segment

EnergyInformation
andCommunicat
ions

Reportable segments
Construction, Equipment,
CATV
and Real
EstateAqua

Subtotal

Other
*1

Total

(Millions of yen)Amount inquarterly
Adjustments
consolidated*2
statement ofincome *3

Net sales
Sales toexternalcustomers
Intrasegment
sales andtransfer
Subtotal
Segment
profit (loss)

44,05326,078

16,574

11,486

3,838

102,033

2,077

104,110－104,110

98

2,038

245

479

125

2,987

177

3,165

-3,165－

44,152

28,117

16,82011,966

3,964

105,0212,254 107,276-3,165

104,110

-216

1,609

2,724

227

80

4,425

-195

4,253

23

4,449

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

II.

Six Months Ended September 30, 2023 (April 1, 2023 to September 30, 2023)
Information on net sales and profit or loss by reportable segment

EnergyInformation
andCommunicat
ions

Reportable segments
Construction, Equipment,
CATV
and Real
EstateAqua

SubtotalOther*12,257 105,226

Total(Millions of yen)Amount inquarterly
Adjustments
consolidated*2
statement ofincome *3

Net sales
Sales toexternalcustomers
Intrasegment
sales andtransfer
Subtotal
Segment
profit (loss)

42,952

27,457

17,732

10,943

3,883

102,968

78

2,692

209

475

139

3,595

43,03030,15017,941

11,4194,022

106,564

-740

2,125

2,795

203

192

4,576

－

105,226

3,760-3,760－2,422 108,986-3,760105,226

4,529

-274

4,254

164

-47

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

10