August 3, 2023
For Immediate Release
TOKAI Holdings Corporation
Katsuo Oguri, Representative Director, President and CEO(Code No. 3167, TSE Prime Market)

Financial Results for the First Three Months of the Fiscal Year Ending March 31,2024– Medium-Term Management Plan 2025 Gets Underway –TOKAI Holdings Corporation (hereinafter, “the Company”) today announced its financial results for the first threemonths of the fiscal year ending March 31, 2024.

1. Q1 net sales grow for the third consecutive year to set new record high
The Company announced the Medium-Term Management Plan 2025 in May. The plan covers the period up tothe fiscal year ending March 31, 2025. During the three-year period until FY2025, the Group will executeinitiatives in line with a growth story consisting of three elements, namely the root, the trunk and the fruit ofgrowth. In doing so, it will seek to create a sustainable society and achieve continuous growth.
For the first three months of the fiscal year under review, net sales stood at 54.0 billion yen, up 2.2 billion yen
or 4.2% year on year, to hit new high for the third consecutive year. This resulted mainly from sales growthfollowing an increase in energy, CATV and other customers and from the expansion of the stock business forcorporate clients in the Information and Communication business.
Operating profit was 2.5 billion yen, down 0.9 billion yen or 26.0% year on year. This is explained mainly by adecrease in gas sales volume for households due to high air temperatures, by an increase in expenses for acquiring
LP gas customers following efforts to win customers at a higher pace than in the same period a year earlier andby pay increases that resulted in a rise in personnel expenses. These factors more than offset earnings growth
after an increase in the number of monthly fee-paying customers accompanying an increase in the number ofcustomer accounts.
(Millions of yen)
Q1 FY03/24

Q1 FY03/23

YoYresultsresults(April 1, 2023 to June 30, 2023)(April 1, 2022 to June 30, 2022)

Net sales

53,97151,803+2,167+4.2％

Operating profit

2,484

3,355

- 871

- 26.0％Ordinary profit

2,617

3,389- 771- 22.8％

Profit attributable to1,338

1,795- 456- 25.4％10.25

13.72- 3.47- 25.3％

Change% change

owners of parent
EPS (yen)2. Steady expansion of customer base in core businesses
As of the end of the first quarter under review, the number of continuing customers reached 3,312 thousand,up 12,584 from the count of 3,299 thousand at the beginning of the fiscal year, and up 19,227 year on year.
This resulted from active efforts to win customers with the aim of achieving the Medium-Term Management Plan.
The Company made continued progress in expanding its earnings base, with net increase of 9,528 (LP and city)
gas customers (6,635 in the same period of the previous fiscal year), 5,896 CATV customers (8,161), 1,331
Hikari Collaboration customers (4,552) and 778 Aqua customers (1,211).

3. Medium-Term Management Plan 2025 was kicked off
Today, circumstances surrounding business entities and customers’ values are changing rapidly, including shifts
in society following the COVID-19 pandemic, mounting awareness of sustainability and turbulent global
economic changes. Amid these changes, the Company understood that needs for addressing medium- and longterm issues for the continuous growth of society were emerging and so developed and adopted Medium-Term
Management Plan 2025, in which the fiscal year ending March 31, 2026 was determined as the final fiscal year.
The TOKAI Group will work to live up to the expectations of its stakeholders as a company which steadily
generates earnings despite the changing market environment.
For the fiscal year ending March 31, 2024, the Group will carry out initiatives in line with a growth story
consisting of three elements, namely the root, the trunk and the fruit of growth, and will aim to achieve incomeand profit growth in full-year financial results.
The earnings and dividend forecasts for the fiscal year ending March 31, 2024 remain unchanged.
(Millions of yen)
FY03/24 forecast

FY03/23 results(April 1, 2023 to March 31,(April 1, 2022 to March 31,2024)

2023)

YoY
Change% change

Net sales

240,000

230,190+9,810+4.3％

Operating profit

15,00014,919+81+0.5％

Ordinary profit

15,00013,289+1,711+12.9％

Profit attributable to8,500

6,465+2,035+31.5％

65.10

49.41

+15.69+31.8％+84,000+2.6％

owners of parent
EPS (yen)
Customer count at end

3,384,000

of fiscal year

FY03/24

3,299,000

FY03/23

FY03/22(forecast)Interim (end of Q2)

16.00 yen

16.00 yen

15.00 yen

Year-end

16.00 yen

16.00 yen

17.00 yen

Annual dividend per

32.00 yen

32.00 yen

32.00 yenshare
For details, please see the attached materials, entitled “Financial Results for the First Three Months of the Fiscal Year Ending March31, 2024.”
For the Company’s earnings announcement for the first three months of the fiscal year ending March 31, 2024, please see thefollowing URL:
https://www.tokaiholdings.co.jp/english/ir/library/earnings.html

Financial Results for the First Quarter of theFiscal Year Ending March 31, 2024
TOKAI Holdings Corporation(Code: 3167)
August 3, 2023

Q1 net sales grow for the third consecutive
year to set new record high Q1 net sales achieved year-on-year growth for the third consecutive fiscal year and set a newrecord high, chiefly reflecting an increase in customers in Energy, CATV and other businesses andthe expansion of the Information and Communications business for corporate clients.
 Q1 operating profit was down 0.9 billion yen year on year, due mainly to a decrease in gas sales
volume for households associated with high air temperatures and other factors, an increase in
expenses for acquiring LP gas customers and pay increases that resulted in a rise in personnel
expenses. These factors offset earnings growth posted after an increase in the number of monthly
fee-paying customers accompanying an increase in the number of customer accounts.

(Millions of yen)

Q3 FY03/23
results

Q3 FY03/22
results(April 1, 2023 –June 30, 2023)(April 1, 2022 –June 30, 2022)

YoY
Change% change

Net sales

53,97151,803+2,167+4.2%

Operating profit

2,484

3,355-871-26.0%

Ordinary profit

2,617

3,389-771-22.8%

Profit attributable toowners of parent

1,338

1,795-456-25.4%EPS (yen)

10.25

13.72

-3.47

-25.3%
1

Steady Expansion of Customer Base inCore Businesses The number of continuing customers as of June 30, 2023 stood at 3,312 thousand, an increase of 13
thousand from 3,299 thousand at the beginning of the fiscal year.
 We further expanded our earnings base in the gas business, CATV business, Hikari Collaboration andAqua business.
3,320

3,315

Customer count(Thousand)-13,305-3

ISP, etc.

3,299

3,290

Hikari Collaboration+1LIBMO+1Gas
LP gas+9City gas+13,312

OthersCATV

Information andCommunications+103,300

3,295+6-1

3,310

Broadcasting+1Communications+5Aqua+1Mobile-2

Others+0Net increase of 13,000

3,285

3,280

分類 1FY2022
Results

エネルギー

情報通信

CATV

その他

分類 7FY2023
1Q Result2* Rounded to the nearest thousand. Adjustment is made in Others for duplicate communication services for ISP and CATV carrier plans.

Consolidated full-year financial results
forecast Net sales are forecasted to rise, attributable to a continued increase in customer accounts mainly inprincipal businesses and to earnings increase following expansion of areas served.
 Operating profit is forecasted to remain unchanged year on year, chiefly reflecting expenses foracquiring customers and personnel revitalization.
 Ordinary profit and profit attributable to owners of parent are expected to jump hugely, after reductionof burdens of impairment losses that occurred in the previous fiscal year.
(Millions of yen)

FY03/24 forecast

FY03/23 results(April 1, 2023 –March 31, 2024)(April 1, 2022 –March 31, 2023)

YoY
Change% change

Net sales

240,000

230,190+9,810+4.3%

Operating profit

15,00014,919+81+0.5%

Ordinary profit

15,00013,289+1,711+12.9%

Profit attributable toowners of parent

8,500

6,465+2,035+31.5%EPS (yen)

65.10

49.41

+15.69+31.8%

3,384,000

3,299,000+84,000+2.6%

Customer count at
end of fiscal year3Dividend forecast
 In accordance with the Company’s policy of paying constant and stable dividends, the annual
dividend per share will be 32 yen, the same as the year before.
 The dividend forecast (announced on May 9, 2023) remains unchanged.
64.8%

60

50

54.7%

52.9%

30

12

28

28

28

yen/shareyen/shareyen/shareyen/share

6
14

12

yen/share yen/share

68

66

6

44.6%

30
yen/share

46.7%

32

50.0%

32

32

yen/share yen/share yen/share

11

40.0%

30.0%

14

14

14

16

17

16

16

11

yen/share

644.5%

28
35.1%

10

49.2%

43.4%

40

20

60.0%

47.2%

46.7%

70.0%

20.0%

14141414151616010.0%

0.0%

FY2013

FY2014FY2015FY2016

Interim dividend

FY2017FY2018Year-end dividend

FY2019FY2020Commemorativedividend

FY2021

FY2022

FY2023(forecast)

Payout ratio

4Appendix(1) Consolidated results(2) Sales by segment(3) Operating profit by segment(4) Consolidated financial indicators(5) Consolidated cash flows(6) Group customer count(1) Consolidated results(Millions of yen)

Q1 FY2019
Results

Q1 FY2020
Results

Q1 FY2021
Results

Q1 FY2022
Results

Q1 FY2023Results

45,804

45,113

48,39651,80353,971

Operating profit

3,231

3,783

3,226

3,355

2,484

Recurring profit

3,351

3,830

3,353

3,389

2,617

Quarterly net
income

2,239

2,445

1,870

1,795

1,338

EPS (Yen)

17.10

18.68

14.28

13.72

10.25

Sales

7

(2) Sales by segment
EnergyInformation
andCommunicati
ons

For IndividualCustomers(Millions of yen)

Q1 FY2019
Results

Q1 FY2020
Results

Q1 FY2021
Results

Q1 FY2022
Results

Q1 FY2023
Results

18,577

17,63418,99823,27423,966
6,035

12,795

12,65012,61912,873CATV

7,738

8,226

7,996

8,239

8,820

Construction, Equipment, andReal Estate

3,777

3,819

5,542

4,641

4,852

Aqua

1,798

1,896

1,921

1,860

1,871

Others

1,116

885

1,319

915

992

45,804

45,113

48,39651,80353,971For Corporate
Customers

Total

7,433

*From 1Q 2023, information communication will be divided into individual and corporate. Prior to that, figures for the entire information and communications sector were shown.

8(3) Operating profit by segment(Millions of yen)

EnergyInformationandCommunicati
ons

For Individual
Customers

Q1 FY2019Results

Q1 FY2020
Results

Q1 FY2021
Results

Q1 FY2022
Results

Q1 FY2023
Results

1,489

1,972

1,578

1,936

924
272

1,217

1,110

1,224

1,236

1,286

1,367

1,459

1,559

1,618

Construction, Equipment, andReal Estate

213

233

263

53

126

Aqua

169

271

3762

98

Others-1,145-1,171-1,337-1,494-1,739

3,231

3,783

3,226

3,355

2,484

For Corporate
Customers

CATVTotal

1,184*Prior to elimination of indirect expenses*From 1Q 2023, information communication will be divided into individual and corporate. Prior to that, figures for the entire information and communications sector were shown.

9(4) Consolidated financial indicators(Millions of yen)

Q1 FY2019
Results

Q1 FY2020
Results

Q1 FY2021
Results

Q1 FY2022
Results

Q1 FY2023
Results

Total assets

163,992

168,253

176,837

183,065

188,637

Total liabilities

99,884

100,025

101,165

103,809106,520

Total net assets

64,107

68,22875,672

79,256

82,117

Balance of interestbearing debt

50,207

48,12743,42845,452

46,246Equity ratio

38.3 %

39.7 %

41.9 %

42.3 %

42.4 %
10(5) Consolidated cash flows(Millions of yen)

Q1 FY2019
Results

Q1 FY2020
Results

Q1 FY2021
Results

Q1 FY2022
Results

Q1 FY2023
Results

Operating cash flow

6,245

10,837

8,339

6,049

8,414

Investment cashflow-3,227-7,579-5,716-4,262-4,252

Free cash flow

3,017

3,257

2,623

1,786

4,161

Financing cash flow

-3,210-3,022-2,282-2,067-3,678

11

(6) Group customer count(Millions of yen)

Q1 FY2019
Results

Q1 FY2020
Results

Q1 FY2021
Results

Q1 FY2022
Results

Q1 FY2023
Results

687718752

791

830

Previous ISP
model, etc.

411

383

391

413

403

HikariCollaboration

326

328

337

351

365

4250

53

58

72

778

760

781

823

840

CATV

1,069

1,161

1,206

1,240

1,293

Aqua

157

159

164

166

165

Mobile

214

211

201

187

176

Security

1716

16

16

16

2,907

3,012

3,108

3,213

3,312
12

Gas (LP and City Gas)
Information andCommunications

LIBMO
SubtotalTotal*The number of customers under a thousand are rounded to the nearest thousand. Information and Communications andCATV both offer communications services, and so their numbers are excluded from total figures.

The performance forecasts and forward-looking statements in these materials are
based on information currently available to the company, and include potential risks anduncertainties. Please be aware that due to changes in a variety of factors, actual results
may differ materially from the projections and other forward-looking statements in thesematerials.

Please contact us with any questions regarding these materials.
Public / Investor Relations Office
TOKAI Holdings Corporation
2-6-8 Tokiwacho, Aoi Ward, Shizuoka City, Shizuoka Prefecture
Phone: +81- (0)54-273-4878
http://tokaiholdings.co.jp/english/
e-mail： overseas_IR@tokaigroup.co.jp