Consolidated Financial Results for the First Three Months of the
Fiscal Year Ending March 31, 2024 [Japanese GAAP]
August 3 2023
Company name: TOKAI Holdings Corporation
Stock listing:Tokyo Stock Exchange
https://tokaiholdings.co.jp
Stock code:
3167
URL:
Representative:
Katsuo Oguri, President & CEO
Contact:
Junichi Yamada, Representative Director and Managing Executive Officer, General Manager ofGeneral Affairs Division Headquarters
Telephone: +81-54-275-0007
Scheduled date of filing quarterly report:
August 10, 2023
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 Three-months Ended June 30, 2023
(April 1, 2023 to June 30, 2023)(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

Three-months Ended
2,484
2,617
-22.8
53,971
4.2-26.0
June 30, 2023
Three-months Ended
3,355
3,389
1.1
51,8037.0
4.0
June 30, 2022
(Note) Comprehensive income: 1,916 million yen in the Three-months ended June 30, 2023 (-24.7%)
2,544 million yen in the Three-months Ended June 30, 2022 (42.0%)
Quarterly Net Income
per Share
Three-months Ended
June 30, 2023
Three-months ended
June 30, 2022

%

1,338

-25.4

1,795

-4.0

Quarterly Net Income
per Share (Diluted)

Yen

Yen

10.25

-

13.72

-

(2) Consolidated Financial Position
Total Assets

Net Assets

Millions of yen

Millions of yen

Equity Ratio%

Three-months Ended
188,637
82,117
June 30, 2023
Year ended
193,339
82,304
March 31, 2023
(Reference) Equity: 79,960 million yen for the Three-months Ended June 30, 2023
80,184 million yen for the year ended March 31, 2023

42.4
41.5

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, 2023

―

16.00

―

16.00

32.00

Year ending March 31, 2024

―
―

16.00

32.00

Year ending March 31, 2024
16.00
(Forecast)(Note) Revisions to most recently announced dividend forecasts: No

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
Millions ofyen%Operating Profit

Recurring Profit

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

%

Yen

12.9

8,500

31.5

65.10

%

Year ending March
240,000
4.3
15,0000.5
15,00031, 2024(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): No3) Changes in accounting estimates: No4) Restatements: No(Note) For details, refer to Attachment P. 10 See “2. Quarterly Consolidated Financial Statements and Main Notes (4) Notes on Quarterly
Consolidated Financial Statements (Changes in Accounting Policy)”.

(4) Number of shares issued (common stock)
1) Shares issued at the end of each period (including treasury stock):

Q1 FY3/2024

139,679,977 shares FY3/2023

139,679,977 shares

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

Q1 FY3/2024

9,105,857 shares FY3/2023

9,105,687 shares

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

Q1 FY3/2024

130,860,135 shares Q1 FY3/2023

130,860,135 shares(Note) The number of treasury shares at the end of the period includes the Company's shares held by the Board Benefit Trust (BBT)(782,100 shares at at Q1 FY3/2024, 782,100 shares at at Q1 FY3/2023). In addition, the treasury stock to be deducted in thecalculation of the average number of shares during the period will include the Company's stock held by the Board Benefit Trust(BBT) (782,100 shares at at Q1 FY3/2024, 496,900 shares at at Q1 FY3/2023).

* 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.

[Attachment]

Contents

1.

Qualitative Information on Financial Results for the Period under Review(1) Explanation of Consolidated Operating Results ······················································· 2(2) Explanation of Consolidated Financial Position ························································ 3(3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information · 4

2.

Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets ································································· 5(2) Quarterly Consolidated Statement of Income, Consolidated Statements of Comprehensive
Income ·················································································································· 7(3) Quarterly Consolidated Statements of Cash Flows ··················································· 9(4) Notes on Quarterly Consolidated Financial Statements ············································ 10(Notes on Going Concern Assumptions)··································································· 10(Notes on Significant Changes in Shareholders' Equity) ·············································· 10(Segment Information） ························································································ 111

1.

Qualitative Information on Financial Results for the Period under Review(1) Explanation of Consolidated Operating Results
During the first three months of the fiscal year under review, the Japanese economy
grappled with persistently high energy prices caused by the sustained depreciation of the
yen and the war in Ukraine. However, a turnaround in consumer spending and an economic
recovery are anticipated, driven by substantial pay increases and increased corporate
investment in growth.
In this environment, the Group developed Medium-Term Management Plan 2025 andannounced 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 thefoundations for sustainable growth, and the third is the full energization of human capital andorganizations.
For the first three months of the fiscal year under review, the Group saw the number ofcontinuing customers rise by 13,000, to 3,312,000, compared with growth of 19,000 in thesame period of the previous fiscal year. The number of TLC members rose 17,000 to
1,175,000. For the same period a year earlier, the figure surged 19,000. With the growth of
its customers and other factors, the Group posted new record net sales of 53,971 million yen,up 4.2% year on year. However, soaring expenses to gain customers and an increase inpersonnel expenses following pay increases resulted in operating income of 2,484 million
yen (down 26.0% year on year), ordinary profit of 2,617 million yen (down 22.8% year onyear) and profit attributable to owners of parent of 1,338 million yen (down 25.4% year onyear).
Performance by segment is indicated below.
(Energy)In the LP gas business, the number of customers increased 9,000 from the end of theprevious fiscal year, to 755,000, reflecting sustained Group efforts to attract customers. On
the other hand, the gas sales volume for households contracted for reasons including highair temperatures. Net sales stood at 19,336 million yen (almost unchanged year on year).
In the city gas business, the number of customers grew 1,000 from the end of theprevious fiscal year, to 75,000. Net sales reached 4,629 million yen (up 17.5%), due to theeffects of the gas rate adjustment system.
Net sales in this segment stood at 23,966 million yen (up 3.0%). Operating profit came to
62 million yen (down 94.4%), reflecting an increase in expense for gaining customers,
among other factors.
(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 and introduced package plans with fixed lines. As ⁠aresult of these measures, the number of broadband customers remained almost
unchanged from the end of the previous fiscal year at 665,000, while the number of LIMBO
customers rose 1,000 from end of the preceding fiscal year to 72,000. Net sales reached6,034 million yen (up 1.2% year on year).
In the business for corporate clients, net sales came to 7,433 million yen, up 7.5% year
on year, mainly reflecting steady growth in career services and cloud services and anincrease in the contract development projects.
Net sales in this segment stood at 13,468 million yen (up 4.6%), and operating profit
came to 1,107 million yen (up 25.6%).
（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 other efforts to enhance content. Due to aggressive
sales activities, the broadcasting services customer count rose to 915,000, an increase of
1,000 from the end of the previous fiscal year. The communications services customer2

count increased to 379,000, a rise of 5,000 from the end of the previous fiscal year.
Net sales in this segment stood at 8,820 million yen (up 7.1%), and operating profit came
to 1,451 million yen (up 4.0%).
(Construction, Equipment, and Real Estate)
In the Construction, Equipment and Real Estate business, net sales stood at 4,852
million yen (up 4.5% year on year), with an operating loss of 40 million yen (as opposed toof operating loss of 98 million yen in the same period a year earlier).
(Aqua)In the Aqua (bottled drinking water delivery) business, the Group began dealing with purewater dispensers in an effort to continuously expand its customer base. The Group also
conducted marketing activities at events in large commercial facilities as well as non-faceto-face sales activities, including online promotion and telemarketing. The number ofcustomers grew 1,000 from the end of the previous fiscal year to 165,000.
In this segment, net sales stood at 1,871 million yen (up 0.6%) and operating profit at
20 million yen (while operating loss of 9 million was posted for the same period in theprevious fiscal year).
(Others)
Net sales in the nursing care business stood at 345 million yen (down 3.8%), reflecting
an decrease in the number of users. In the ship repair business, net sales amounted to 189
million (up 51.0%) as the number of ships that the Group repaired soared. In the bridal
events business, net sales reached 260 million yen (up 20.2%), following a recovery in
weddings and receptions.
As a consequence of these initiatives, net sales in this segment stood at 992 million yen(up 8.5% year on year) with an operating loss of 37 million yen (compared with anoperating profit of 38 million yen in the same period of the previous fiscal year), reflecting arise 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 three months under review stood at 18,637 million yen, adecrease of 4,702 million yen from the end of the previous fiscal year. The decrease wasattributable primarily to a decline of 6,585 million yen in notes and accounts receivable - tradeand contract assets, attributable to seasonal factors, among other factors, which was partially
offset by an increase of 1,028 million in Other as part of investments and other assets and anincrease of 666 million yen in work in process.
Total liabilities came to 106,520 million yen, a decrease of 4,514 million yen from the end of
the previous fiscal year. This was due to a decrease of 3,818 million yen in notes andaccounts payable - trade for seasonal and other reasons, a contraction of 2,328 million yen in
long-term borrowings, which were partially offset by an increase of 1,965 million yen in shortterm borrowings.
Total net assets were 82,117 million yen, a decrease of 187 million yen from the end of theprevious fiscal year. This was chiefly due to posting of profit attributable to owners of parent of
1,338 million yen and to increases in valuation difference on available-for-sale securities by
499 million yen and in foreign currency translation adjustment by 118 million yen despite
dividends of surplus of 2,101 million yen.
2) Cash Flows
Cash and cash equivalents (“cash”) as of June 30, 2023 were 4,516 million yen, an increaseof 487 million yen from the end of the previous fiscal year.
Cash flows in the first three months under review and major contributing factors are as
follows.
(Cash flows from operating activities)
Net cash provided by operating activities was 8,414 million yen (2,364 million yen higher
year on year). Cash inflows were attributable primarily to net income before income taxes, a3

decrease in notes and accounts payable, and depreciation, a non-cash account, which werepartially offset by income taxes paid and a decrease in notes and accounts payable-trade,among other cash outflows.
(Cash flows from investing activities)
Net cash used in investing activities 4,252 million yen (10 million yen higher year on year).
The cash outflows were attributable primarily to purchases of property, plant and equipment
and intangible assets.
(Cash flows from financing activities)
Net cash used in financing activities was 3,678 million yen (1,610 million yen less year onyear). Loans payable 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 three 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

2. 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
assetsMerchandise 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)Three Months Ended
June 30, 2023

4,359

4,842

29,89923,313

5,448
1,130
1,589
9,850
-454
51,824

5,156
1,796
1,589
10,279-457
46,52036,18826,03824,841
23,316110,384

35,912
25,844
24,591
23,780110,129

5,904
4,588
10,492

5,882
4,458
10,341

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

4,101
17,813-273
21,642
142,112
3
188,637

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 loans payable
Other provision
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
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

Fiscal Year Ended
March 31, 2023

(Millions of yen)Three Months Ended
June 30, 2023

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

15,982
17,7191,449
88
23,46058,70030,855342
1,377
17,412
49,988111,034

28,527345
1,409
17,53847,819106,520

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

14,00025,56637,763-2,60174,729

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

1,958
860
2,412
5,230
43
2,113
82,117
188,637

(2) Quarterly Consolidated Statements of Income, Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Three Months Ended June 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 donation of non-current assets
Transmission line facility subsidies
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sale 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(Millions of yen)Three Months Ended Three Months Ended
June 30, 2022
June 30, 2023
(April 1, 2022 to(April 1, 2023 toJune 30, 2022)
June 30, 2023)
51,80353,971
31,26733,62020,536
20,35017,181
17,866
3,355
2,484
5
100
8
112
227

1
111
7
100
222

65
99
28
193
3,389

73
－
15
88
2,617

8
－
21
31
61

3
－
14
2
20

0
187
302
490
2,960
1,269
-151
1,117
1,842
47
1,795

－
254
－
254
2,383
1,388
-382
1,006
1,377
38
1,338

(Consolidated Statements of Comprehensive Income)(Three Months Ended June 30, 2023)

Quarterly net income
Other comprehensive income
Valuation difference on available-for-sale securities
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 ownersof the parent
Quarterly comprehensive income attributable to noncontrolling interests

8

Three Months Ended
June 30, 2022
(April 1, 2022 toJune 30, 2022)
1,842(Millions of yen)Three Months Ended
June 30, 2023
(April 1, 2023 toJune 30, 2023)
1,377

411
0
-80

499
2
-79

370

117

702
2,544

539
1,916

2,495

1,877

49

39

(3) Quarterly Consolidated Statements of Cash Flows
Three Months
Ended
June 30, 2022
(April 1, 2022 toJune 30, 2022)
Cash flows from operating activities
Quarterly net income before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit asset and liability
Interest and dividend income
Loss (gain) on sales of investment securities
Interest expenses(Gain) loss on sales of non-current assets
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 trade payables
Increase (decrease) in accrued expenses
Other
Subtotal
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Interest and dividends received
Purchase of securities
Proceeds from sale of securities
Purchase of property, plant and equipment and intangible assets
Proceeds from sale of property, plant and equipment and intangible
assetsProceeds 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
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(Millions of yen)Three Months
Ended
June 30, 2023
(April 1, 2023 toJune 30, 2023)

2,960
3,731
244
-1,424
-102
-106
-21
65
-8
302
187
6,312
-2,427-2,592
3,028
-953
9,197
-3,147
6,049

2,383
3,893
244
-1,490
-91
-113
－
73
-3
－
254
6,952
-115
-3,821
3,168-414
10,919-2,505
8,414

116
-729
32
-3,761128-2－-4,616

162

290

5
-88
-4,262

1-53-4,252-65
3,850-1,157-2,546-0-2,140-8-2,067
3
-277
4,447
4,170

-75
2,309
-1,210-2,671-0-2,020-9-3,678
4
487
4,028
4,516

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

10

(Segment Information, etc.)[Segment Information]
I. Three Months Ended June 30, 2022 (April 1, 2022 to June 30, 2022)
Sales and Income of Losses by Reportable Segment(Millions of yen)
Reportable segments
Constru
Information
ction,
Other1andEnergy Equipm CATV
Aqua Subtotal
Communic
ent Real
ationsestateSales
Sales toexternalcustomers
Intersegment
sales andtransfers

23,274 12,873

8,239

4,641

971

122

210

Subtotal

23,324 13,844

8,362

4,851

Segment income(loss)

1,125

1,396

-98

(Notes)50

881

1,860 50,888
5

1,360

1,865 52,249
-9

3,295

Total

Adjustments2

Amount inquarterly
consolidated
statements ofIncome3

915 51,803－

51,803

1,454-1,454－

1,009 53,258-1,45451,803

21

3,355

94

38

3,333

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. Three Months Ended June 30, 2023 (April 1, 2023 to June 30, 2023)
Sales and Income of Losses by Reportable Segment(Millions of yen)
Reportable segments
Constru
Information
ction,
Other1andEnergy Equipm CATV
Aqua Subtotal
Communic
ent Real
ationsestateSales
Sales toexternalcustomers
Intersegment
sales andtransfers
Subtotal
Segment income(loss)(Notes)23,966 13,468

8,820

4,852

1,561

106

214

24,008 15,029

8,926

5,066

1,451

-40

42

62

1,107

1,871 52,979
6

1,931

1,878 54,910
20

2,601

Total

Adjustments2

Amount inquarterly
consolidated
statements ofIncome3

992 53,971－

53,971

2,016-2,016－

1,077 55,987-2,01653,971

2,564

-80

2,484

85

-37

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

11