January 31, 2018

To whom it may concern
TOKAI Holdings Corporation
Katsuhiko Tokita, President & CEO(Code No. 3167 Tokyo Stock Exchange First Section)

Expansion of LPG business into Tajimi Area in Gifu Prefecture
TOKAI CORPORATION (Headquarters: Shizuoka City, Shizuoka Pref.; President & CEO: Katsuo Oguri), a
wholly-owned subsidiary of TOKAI Holdings Corporation, which conducts energy-related business such as
the sale of liquefied petroleum gas (LPG) opened Tajimi Office in November 2017. It is the second office inthe prefecture following Gifu Office established in October 2016 and aims to promote LPG retail business in
Gifu further and enhance profitability.
Environment surrounding LPG business is challenging. The market is inevitably becoming more mature as
the household and commercial uses of the gas which accounts for 40% of the domestic demand of LPG is
expected to decrease by 1.8% annually in coming four years*1 and gas consumption volume per household
consumer has been declining by approximately 2% every year*2 due to fewer members in a household andenergy-saving efforts.
In such environment, the Group announced the new mid-term management plan called Innovation Plan 2020
“JUMP” on May 9, 2017. In it, the Company plans to take the LPG business into new geographical areas andboost the share within these markets and to invest aggressively in this business over the four years until theend of FY2020.
We continue to vigorously expand the customer base and increase the number of customers of the LP gas
business to 760,000 by the end of FY2020, a 30% increase from 590,000 at the end of FY 2016.
With the vision of TLC (Total Life Concierge), the TOKAI Group offers a comprehensive range of lifestyleinfrastructure services closely connected to people’s lives, including energy, information andcommunications, and CATV, which are currently being used by 2.82 million customers. By maintaining
proactive efforts to provide products and services that can contribute to solving regional and social issues,
the Group will strive to improve customer satisfaction.

*1*2

Cited from the WG material of Oil Market Trends Survey by Ministry of Economy, Trade and Industry (April 3,2017)
Based on the Company’s original research.

Contact: Yoshihiro Taniguchi
Public Relations and Investor Relations Office
TEL: +81-(0)3-5404-2891
Email: overseas_IR@tokaigroup.co.jp

Mid-term plan for LPG business - its policy and plan toexpand customer base
LPG market has matured, and both household and commercial users aredecreasing.
Aggressive investment to expand service area and boost market share inorder to sustain the business growth.
Plan to increase the number of customers by 30% to 760,000 in four years
Plan to increase LPG clients

Expandingthe area

Getting alargershare(10 K)

30% increase infour years

Aggressive investment
Sustained business growth

Vigorously introducing the LPG business into newgeographic areas
Focusing on the location close to the areas where the LPG business (shown in blue) andother Group businesses (such as CATV, insurance, bottled water delivery, andcommercial use) have penetrated

MiyagiNew locations (FY2016) five offices

Tajimi OfficeSendai Office

New locations (FY2017) three offices
Suwa Office (TBD)

New locations (FY2018) two offices

Iwaki Office

Gifu Office

NaganoKyushu Office (TBD)

OkayamaTokyo

ShizuokaOsaka

Toyokawa OfficeMie

Nishimikawa Office
Fukuoka

Mie Office (TBD)
Okayama Office

Area of operation(LPG)
Area of operation(non-LPG)
Targeted area forentry
Area where the entry
is scheduled