Consolidated Financial Results for the First Six Months of the
Fiscal Year Ending March 31, 2021 [Japanese GAAP]
October 29, 2020
Company name: TOKAI Holdings Corporation
Stock listing:Tokyo Stock Exchange
Stock code:
3167
URL:
https://www.tokaiholdings.co.jp/english/
Representative:
Katsukiho Tokita, President & CEO
Contact:
Junichi Yamada, Managing Executive Officer, General Manager of General Affairs Division
Headquarters
Telephone: +81-54-275-0007
Scheduled date of filing quarterly report:
November 12, 2020
Scheduled date of dividend payment:
November 30, 2020
Supplementary materials on quarterly financial results:
Yes
Quarterly financial results briefing:
Yes (For institutional investors)(Figures are rounded to the nearest million yen)

1. Consolidated Financial Results for the Six-months Ended September 30, 2020
(April 1, 2020 to September 30, 2020)(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

Six-months Ended
89,836
-3.4
5,452
-0.9
5,499
-1.9
3,279
September 30, 2020
Six-months ended
93,015
4.7
5,500
58.3
5,608
56.6
3,492
September 30, 2019
(Note) Comprehensive income: 5,256 million yen in the Six-months Ended September 30, 2020 (79.8%)
2,924 million yen in the Six-months ended September 30, 2019 (3.7%)
Quarterly Net Income
per ShareSix-months Ended
September 30, 2020
Six-months ended
September 30, 2019

%

-6.1
101.1

Quarterly Net Income
per Share (Diluted)

Yen

Yen

25.04

-

26.67

-

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

Six-months Ended
167,687
69,398September 30, 2020
Year ended
169,972
65,982
March 31, 2020
(Reference) Equity: 67,946 million yen for the Six-months Ended September 30, 2020
64,595 million yen for the year ended March 31, 2020

40.5
38.0

2. Dividends
End of Q1

End of Q2
Yen

Yen

Year ended March 31, 2020―
14.00
Year ending March 31, 2021―
14.00
Year ending March 31, 2018
(Forecast)(Note) Revisions to most recently announced dividend forecasts: No

Annual Dividend
End of Q3

Year-end

Total

Yen

Yen

Yen

―

14.00

28.00

―

14.00

28.00

3. Consolidated Earnings Forecasts for the Year Ending March 31, 2020 (April 1, 2020 to March 31,
2021)(% 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

2.7

8,460

2.7

64.60

%

Year ending March
205,300
4.8
15,0005.5
14,87031, 2021(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):

Q2 FY3/2021

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

Q2 FY3/2021

8,713,096 shares FY3/2020

8,722,345 shares

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

Q2 FY3/2021

130,960,773 shares Q2 FY3/2020

130,951,794 shares

139,679,977 shares FY3/2020

139,679,977 shares(Note) Board benefit trust shares(BBT) is included in the number of year-end treasury stock.(391,300 stocks at Q2 FY3/2021, 400,700
stocks at FY3/2020)
In addition, the average number of shares to be deducted for the period (cumulative period) includes our shares held by the Stock
Payment Trust (BBT) (397,515 shares at Q2 FY3/2021, 407,378 shares at Q2 FY3/2020).

* 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 Performance ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 2(2)

Explanation of Consolidated Financial Positionꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 4(3)

Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 5

2. Quarterly Consolidated Financial Statements and Notes(1)

Quarterly Consolidated Balance Sheets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 6(2)

Quarterly Consolidated Statements of Income, Consolidated Statements of Comprehensive Income ꞏꞏꞏꞏꞏꞏ 8(3)

Quarterly Consolidated Statements of Cash Flows ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 10(4)

Notes on Quarterly Consolidated Financial Statements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 11(Notes to Premise of Going Concern) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 11(Notes on Significant Changes in Shareholders’ Equity) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 11(Segment Information, etc) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 11(Significant Subsequent Events) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 121

1. Qualitative Information on Financial Results for the Period Under Review(1) Explanation of Consolidated Operating Performance
In the first six months of the fiscal year ending March 31, 2021, the Japanese economy deteriorated rapidly due tostagnation in economic activity caused by impact from the novel coronavirus (COVID-19) pandemic. However, signs ofimprovement in personal consumption continue to be seen thanks primarily to various economic measures taken by thegovernment in response to the pandemic. Nevertheless, projections regarding how to properly balance economic activity
with infectious disease prevention remains extremely uncertain.
Under these conditions, the TOKAI Group entered the fourth and final year of its medium-term management plan,
Innovation Plan 2020 “JUMP.” The Group’s primary earnings base rests on its ongoing business with general consumers.
Furthermore, we strive to provide daily life-related infrastructure to all households and have assumed direct responsibility
for customer contact points. Consistent with these efforts, we regard business continuity and preventing the spread of
COVID-19 through appropriate countermeasures and policies that protect the safety of customers and employees as toppriority issues. Accordingly, we actively conducted remote sales activities that do not involve direct human contact,
including Internet-based information transmission and business meetings. As of September 30, 2020, our number ofcontinuing customers had risen to 3,042,000, up 39,000 from its level as of March 31, 2020, and TLC Membership
Service members numbered 938,000, up 42,000.
As a result of these circumstances, the Group recorded sales of 89,836 million yen (-3.4% year on year) in the six
months ended September 30, 2020. The decline in sales occurred despite an increase in customer count due in part to adecrease in gas selling prices associated with a drop in procurement prices and lower renovation and facility equipment
sales resulting from the COVID-19 pandemic. Meanwhile, operating profit came to 5,452 million yen (-0.9% year on year),recurring profit was 5,499 million yen (-1.9% year on year), and net income attributable to owners of the parent finishedat 3,279 million yen (-6.1% year on year).
The Group is aiming to expand its earnings base by broadening its business area. During the six months ended
September 30, 2020, we pursued this target by establishing new sales bases for the LP gas business in Kasugai, Aichi
Prefecture and Yokkaichi, Mie Prefecture in June 2020. Through our Construction, Equipment, and Real Estate segment,
we acquired shares in Chuo Denki Koji Co., Ltd., an electrical construction company in Nagoya, Aichi Prefecture, andconverted it into a consolidated subsidiary in August 2020. This acquisition will expand the segment’s business
operations in the Chukyo metropolitan area. In addition to this move, we converted MIEN TRUNG GAS JOINT STOCKCOMPANY and V-GAS PETROLEUM CORPORATION, two companies located in the Socialist Republic of Vietnam, into
equity-method affiliates and successfully entered the Vietnamese LP gas market.

Performance by segment is indicated below. Effective from the start of the fiscal year ending March 31, 2021, we havechanged the names of our reportable segments as follows: the “Gas and Petroleum” segment has become the “Energy”
segment, and the “Building and Real Estate” segment has been renamed the “Construction, Equipment, and Real
Estate” segment. These name changes do not accompany any impact on segment performance.

(Energy)In the LP gas business, despite restrictions on in-person sales activities, customer count rose by 15,000 during the six
months ended September 30, 2020, reaching 667,000 customers thanks to the application of telemarketing and online
sales activities. Despite the rise in customer count, sales declined to 27,842 million yen (-4.8% year on year) due to adecrease in selling prices linked to a decline in procurement prices and lower volumes of industrial and commercial gas

2sold.
In the city gas business, the number of customers was 61,000, mostly unchanged from its level as of March 31, 2020.
However, sales fell to 5,587 million yen (-14.4% year on year) due in part to a decline in selling prices associated with thegas rate adjustment system.
As a result, segment sales were 33,430 million yen (-6.5% year on year) and segment operating profit was 1,041
million yen (+32.3% year on year).

(Construction, Equipment, and Real Estate)
In the Construction, Equipment, and Real Estate segment, sales were 9,074 million yen (-6.8% year on year) andoperating profit came to 242 million yen (-50.3% year on year). The decline in performance was primarily due to lower
renovation and facility equipment sales resulting from a delay in sales activities caused by the COVID-19 pandemic.

(CATV)
Through its CATV business, the Group carefully and steadily maintained its sales activities in accordance with theactual circumstances facing each region as a community-based service provider amid the COVID-19 crisis. As a result,
our broadcasting services customer count increased to 868,000, up 6,000 from its level as of March 31, 2020, and ourcommunications services customer count rose by 19,000 to 311,000.
Consequently, segment sales amounted to 16,490 million yen (+5.8% year on year) and segment operating profit was
2,392 million yen (+3.8% year on year).

(Information and Communications)
In the Information and Communications business for individual customers, the Group responded to intensifying
competition from major mobile phone carriers and increasing communications services demand associated with the
COVID-19 pandemic by enhancing set plans accompanying the Hikari Collaboration (including a high 30 GB storage
capacity plan for LIBMO, a TOKAI-brand MVNO service) and acquiring customers through the Internet. Consequently,
our total number of individual customers increased by a net 1,000 compared to March 31, 2020, after declining for theprevious six fiscal years, and finished at 762,000 (conventional ISP customers fell by 3,000 to 710,000, and LIBMO
customers rose by 4,000 to 51,000). As a result, sales were 13,142 million yen (-9.8% year on year).
Through its Information and Communications business for corporate clients, the Group achieved progress in the fieldof cloud services and captured demand associated with teleworking, both factors that led to recurring-revenue businessexpansion. As a result, sales came to 11,988 million yen (+5.6% year on year).
Due to the above factors, segment sales were 25,131 million yen (-3.0% year on year) and segment operating profit
was 1,415 million yen (-14.6% year on year).

(Aqua)The number of customers in the Aqua (bottled drinking water delivery) business was 161,000, mostly level with thenumber booked on March 31, 2020 due to stagnation in event-based sales and marketing caused by self-imposed
operational limitations at shopping malls and other commercial facilities. At the same time, the number of bottles sold per
customer rose as a result of demand from consumers who refrained from going outdoors in response to the COVID-19
pandemic.
Consequently, segment sales were 3,880 million yen (+3.4% year on year) and segment operating profit was 273
million yen (+6.0% year on year).

3

(Others)
Turning to other businesses, sales in the nursing care business totaled 655 million yen (+14.1% year on year) thanks
to contributions from Tender Co., Ltd. (Gero, Gifu Prefecture), which became a consolidated subsidiary during theprevious fiscal year. Sales in the shipbuilding business fell to 660 million yen (-9.1% year on year) as a result of adecrease in the number of vessels repaired. Sales in the bridal events business declined to 112 million yen (-80.4% year
on year) due to wedding ceremony postponements and the application of self-restraint associated with the holding of
banquets in response to the COVID-19 pandemic.
As a result of these factors, segment sales were 1,828 million yen (-18.9% year on year) and segment operating loss
was 140 million yen (versus operating profit of 51 million yen in the same period of the previous fiscal year).

(2) Explanation of Consolidated Financial Position
1) Assets, Liabilities, and Net Assets
As of September 30, 2020, total assets amounted to 167,687 million yen, down 2,285 million yen from March 31,
2020. This mainly reflected a decline of 5,474 million yen in notes and accounts receivable–trade stemming fromseasonal factors, which was partially offset by an increase of 1,441 million yen in property, plant and equipment mainly
caused by business acquisition and a rise of 2,124 million yen in the “other” account under “investments and otherassets” that was primarily due to the acquisition of shares in affiliated companies.
Total liabilities stood at 98,288 million yen, down 5,701 million yen from March 31, 2020. This was primarily due to adecrease of 1,946 million yen in notes and accounts payable–trade stemming from seasonal factors and a decline of
3,538 million yen in the “other” account under “current liabilities” resulting mainly from lower derivative liabilities.
Net assets totaled 69,398 million yen, up 3,415 million yen from March 31, 2020. This mainly reflected the booking of
3,279 million yen in net income attributable to owners of the parent and a 1,423 million yen increase in deferred gains
on hedges, which were partially offset as the Company issued a 1,839 million-yen dividends of surplus.

2) Cash Flows
As of September 30, 2020, cash and cash equivalents stood at 4,105 million yen, up 59 million yen from March 31,
2020.
Cash flows from all activities during the period under review and the factors behind them are as follows:(Cash flows from operating activities)
Net cash provided by operating activities was 14,805 million yen, up 4,099 million yen from the same period of theprevious fiscal year. Cash inflows stemming primarily from net income before income taxes, a decrease in tradereceivables, and depreciation (a non-cash item) exceeded cash outflows caused mainly by income taxes paid and adecrease in trade payables.

(Cash flows from investing activities)
Net cash used in investing activities was 10,696 million yen, up 3,836 million yen from the same period of theprevious fiscal year. The primary uses of cash were the purchase of property, plant and equipment and intangible
assets, the purchase of shares of subsidiaries and associates, and payments for the acquisition of businesses.

4

(Cash flows from financing activities)
Net cash used in financing activities was 4,048 million yen, up 389 million yen from the same period of the previous
fiscal year. This result was primarily due to repayments of short-term loans payable and lease obligations and dividend
payments that exceeded proceeds from long-term loans payable.

(3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information
Earnings results for the six months ended September 30, 2020 were generally in line with forecast, and the Group
maintains its consolidated earnings forecast for the fiscal year ending March 31, 2021, which was announced on May 8,
2020.
The earnings forecast is based on information currently available to the Company. Actual results may differ from theforecast due to a variety of factors.

5

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets
Fiscal Year Ended
March 31, 2020
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable–trade
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

6(Millions of yen)
Six Months Ended
September 30, 2020

4,629
25,859
3,679
944
930
8,623
- 399
44,2684,530
20,385
3,556
1,559
955
7,721
- 377
38,33034,256
23,77323,06817,25498,35334,22524,122
23,892
17,554
99,795

5,125
5,705
10,831

5,372
5,543
10,916

1,601
15,294- 377
16,518125,7031
169,972

1,609
17,418- 383
18,644
129,355
1
167,687

Liabilities
Current liabilities
Notes and accounts payable–trade
Short-term loans payable
Current portion of bonds
Income taxes payable
Provision for loss on litigation
Other provision
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Accruals
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

7

Fiscal Year Ended
March 31, 2020

(Millions of yen)
Six Months Ended
September 30, 2020

15,03419,921
118
2,244
1,161
1,782
20,35460,617

13,087
15,071
108
1,881
1,184
1,819
16,81549,969112
28,121
238
876
14,02443,372103,989

63
33,016363
908
13,96748,31998,28814,00025,542
26,426- 2,22163,746

14,00025,54527,866- 2,219
65,193

290
- 883
-7
1,449
848
1,387
65,982
169,972

879
539
- 88
1,421
2,752
1,452
69,398167,687

(2) Quarterly Consolidated Statements of Income, Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Six-months Ended September 30, 2020)

Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating profit
Interest income
Dividend income
Commission fee
Subsidy income
Share of profit of entities accounted for using equity method
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
Transmission line facility subsidies
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Loss on sales of investment securities
Loss on valuation of investment securities
Provision for loss on litigation
Other
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

8(Millions of yen)
Six Months Ended
Six Months Ended
June 30, 2019
September 30, 2020
(April 1, 2019 to(April 1, 2020 toJune 30, 2019)
September 30, 2020)
93,01589,83655,85051,604
37,16538,231
31,664
32,779
5,500
5,452
5
117
16
10
64
101
306

6
103
14
68
－
121
313

153
－
44
198
5,608

149
63
53
266
5,499

13
－
49
108
171

51
228
53
－
334

0
384
9
－
－
115
508
5,271
1,786
-123
1,662
3,608
116
3,492

0
322
0
55
23
－
401
5,431
2,059
19
2,078
3,353
73
3,279

(Consolidated Statements of Comprehensive Income)(Six-months Ended September 30, 2020)

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 for using 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

9

Six Months Ended
September 30, 2019
(April 1, 2019 to
September 30, 2019)
3,608(Millions of yen)
Six Months Ended
September 30, 2020
(April 1, 2020 to
September 30, 2020)
3,353

-236
-351
0
-92

589
1,423
-0
- 27

-5

- 81

-684
2,924

1,903
5,256

2,808

5,183

115

73

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)
Six Months Ended Six Months Ended
June 30, 2019
September 30, 2020
(April 1, 2019 to(April 1, 2020 toJune 30, 2019)
September 30, 2020)
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
Loss (gain) on sales of non-current assets
Loss (gain) on valuation of investment securities
Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable – trade(Increase) decrease in inventories
Decrease (increase) in guarantee deposits
Increase (decrease) in notes and accounts payable–trade
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
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Purchase of shares of subsidiaries and associates
Payments for transfer of businessCollection of short-term 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
Redemption of bonds
Payments for acquisition of treasury stock
Proceeds from disposal of treasury shares
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

10

5,271
7,080
535
-122
-123
-99
153
-13
－
384
3,346
249
- 341
-1,312-2,17813,172-2,466
10,706

5,431
7,300
597
-29
-109
0
149
-51
55
322
6,081
-480
1,636
-1,981-1,72917,193-2,38814,805146-6247-5,750
107

132
-8
70
-6,917158-1,408

-828

-248
-180
10
221
-6,859-2,112-1,6309430-10,696-162-375-1,8585,400-4,722-94-0
0-1,838-8-3,659
-1
185
4,018
4,204

-153
-5,850-2,034
10,736-4,841-59-0－-1,838-7-4,048
-0
59
4,046
4,105

(4) Notes on Quarterly Consolidated Financial Statements(Notes to Premise of Going Concern)
Not applicable.
(Notes on Significant Changes in Shareholders’ Equity)
Not applicable.
(Segment Information, etc.)[Segment Information]
I. Six-months ended September 30, 2019 (April 1, 2019 to September 30, 2019)
Sales and Income of Losses by Reportable Segment
Reportable segments
Building
Informatio
Other1equipmen andEnergyCATV
Aqua Subtotal
nt realCommuniestate- cations
Sales
Sales toexternalcustomers
Intersegment
sales andtransfers
Subtotal
Segment income(loss)(Notes)35,76687

9,736 15,593

344

1,746

35,853 10,231 15,937

27,658787

494

25,911

487

2,304

1,657

3,752 90,760

98

2,771

3,851 93,532
257

5,494

(Millions of yen)Amount inquarterly
consolidated
statements ofIncome3

Total

Adjustments2

2,255 93,015－

93,0152,857△2,857－2,340 95,872△2,85793,015

△45

5,500

85

51

5,545

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. Six-months Ended September 30, 2020 (April 1, 2020 to September 30, 2020)
1.Sales and Income of Losses by Reportable Segment
Reportable segments
Information
Building
Other1andEnergy equipment CATV
Aqua Subtotal
Communireal estatecations

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

Sales
Sales toexternalcustomers
Intersegment
sales andtransfers

33,430107

Subtotal

33,538Segment
income (loss)

1,041(Notes)

9,074 16,490

454

306

9,529 16,797
242

2,392

－

89,836

2,782-2,782－

26,882 3,977 90,724

1,894 92,618-2,782

89,836

1,415

△140

228

5,452

25,131 3,880 88,007

1,751

96

273

2,716

5,364

1,828 89,836

65

5,223

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.

11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.

2. Changes in reportable segments
Effective from the first quarter of the current fiscal year, the Company changed the name ofreportable segments from "Gas and Oil" to "Energy," "Buildings and Real Estate" to "Building
equipment real estate." There is no impact on the performance of each segment due to thechange in segment name.
Reportable segment information for the second quarter of the previous fiscal year is presented
under the new name.

(Significant Subsequent Events)
Resolution of important lawsuits
On February 3, 2020, TOKAI Communications Corporation filed a petition in the Supreme Court for appeal andaccepted an appeal against Hitachi Solutions, Ltd. as a plaintiff (anti-appeal defendant) in the case against
Hitachi Solutions, Ltd. (anti-appeal plaintiff). The Supreme Court rejected the appeal of TOKAI Communications
Corporation on October 20, 2020 and decided not to accept the appeal as an appeal. As a result, TOKAI
Communications Corporation has finalized an appeals verdict ordering Hitachi Solutions, Ltd. to pay damages of¥766 million and late damages thereon.

12