January 31, 2018

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

The Number of CATV Subscribers Exceeded 1 Million!
TOKAI Holdings announces that the Group’s CATV business celebrated the 30th anniversary in September
2017 and the number of subscribers exceeded the 1-million subscriber mark at the end of the year.
CATV business of the TOKAI Group provides broadcast and communication services (Internet connection
service) through eight subsidiaries*1 in Tokyo, Shizuoka, Kanagawa, Chiba, Nagano, and Okayama
prefectures. 750 thousand subscribers use the broadcast service through the community television channel
and multi-channel digital broadcast while 250 thousand users enjoy the stable Internet and optical IP
telephone services using the Group-owned fiber-optic network in our communication service. Revenue of theCATV business captured the third spot in the market*2.
The greatest strength of the business is the promotion of FTTH (Fiber-to-the-Home) connecting the master
facility and a subscriber’s home with optic fiber, which enables the provision of large-volume images
communication, and sounds that support 4K and 8K broadcasting. This project started in 2006 with an
insight into the era of fusion between broadcasting and communications and will have almost completed by2020.
The Group actively engages in collaborative initiatives with other partners, including the discount programof CATV service and smartphone to be more competitive in price, and works to diversify its business bylaunching smart home service “Intelligent Home,” which is considered a significant part of the IoT services.
The Company published Innovation Plan 2020 “JUMP” (“IP 2020”), the medium-term management plan tobe conducted through FY2020, in last May. One of the main goals of the plan is to expand the customer baseof the Group’s core business segments including CATV, and the CATV business aims to acquire 380
thousand new customers in four years.
In addition to the steady subscriber growth in existing business areas, Tokyo Bay Network Co., Ltd., whichbecame a consolidated subsidiary in last July through the merger, and TV Tsuyama Inc., a cable television
station in Tsuyama City, Okayama, which is planned to become a consolidated subsidiary, will help achieve
the net increase of 380 thousand subscribers in four years as we now expect 300 thousand increase for thefirst year. CATV business surely got off to a flying start to achieve IP2020.
The Company continues to expand the revenue base of the CATV business by means of M&As andinvestment in alliances.
*1

TOKAI Cable Network Corporation, Ichihara Community Network TV Corp., Atsugi Isehara Cablenetwork.,Inc.,
EAST Communications Co., Ltd., LCV Corporation, KCT Co., Ltd., TOCO Channel Shizuoka, and Tokyo Bay
Network Co., Ltd.

*2

Cited from “Urban CATV” of “the 35th Service Industry Comprehensive Survey” featured in Nikkei MJ November 8, 2017
issue published by Nikkei Inc..

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

Change in the number of subscribers

July 2017
Acquiring a stake inTokyo Bay Network(subscribers)
1,200,000

Growth attributable to M&As
M&A分
November 2010
Acquiring a stake inDream Wave Shizuoka

Organic growth既存
1,000,000

April 2012
Spin off of CATV
business

1,008,626
1,001,616

合計
December 2009
Acquiring a stake in
LCV Corporation and KCT

800,000

600,000(250,221)

May 2003
Acquiring a stake in
EAST Communications

712,172October 1999
Taking over a business ofAtsugi Isehara Cablenetwork.

September 2006
Launching FTTH service using
CATV optical network

April 1998
Acquiring a stake in Ichihara
Community Network TV

405,329

October 1998
Launching CATVInternet service

400,000

218,332

200,000
106,288

9,476

0H1H2H3H4H5H6H7H8H9H10H11H12H13H14H15H16H17H18

H19H20H21H22H23

H24

H25

H26

H27H28

H29年度
FY

FY
FY
FY
FY 年度
FY 年度
FY 年度
FY 年度
FY 年度
FY 年度
FY 年度
FY 年度
FY 年度
FY
FY
FY
FY年度
年度年度 FY
年度 FY
年度 FY
年度 FY
年度 FY
年度 FY年度 FY年度 FY年度 FY年度 FY 年度FY 年度FY 年度FY 年度
年度年度年度 12月末(12月)2017/1989 1990 1991 1992 1993 1994 1995 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Dec 311

Promoting “opticalization” of broadcasting and communications
through the company-owned fiber-optic network
Promoting FTTH since 2006 with an insight into the era of fusion between broadcasting andcommunications
Opticalization will have almost complete throughout the company’s CATV coverage by FY2020
These initiatives lead to an increase in the number of subscribers of both broadcasting andcommunication services and help expand the business in the future.
[Opticalization of broadcasting] FTTH … High distribution
capacity, resistance against failure, and durability.

(no installation is needed if the cable isalready used for communication service)

Headend(master facility) Trunk optical fiber
cable for CATV
Receiving
various signals
via optic fiber,etc.

Reinforcing the master
facility to add capacity
to transmit over thefiber optic cable

Leading in theoptical fiber

Splice closure

Coupler(terminal)

Deliverycapabilities
2,600 MHzHouse of a user

Adding coupler forbroadcasting

Using the existing FTTH
network forcommunication tobroadcasting

Installing the ONU forbroadcasting in each house

Schedule for opticalizationof broadcasting
(%)

100
80
60

Opticalization mostly
complete

40
200
FY20162016年度FY20172017年度TCN/EAST
TCN・イースト

TOCO Channel
トコちゃんねる

FY20182018年度Ichihara
いちはら

FY20192019年度KCT
倉敷Atsugi
厚木

FY20202020年度LCV
LCV2Increasing the number ofcommunication subscribers
through collaboration with major carriers.
High-margin FTTH service using the Company’s network sees a steady increase in the numberofusers and establishes the market share of over 30%
Alliance with major carriers leads to a win-win relationship thanks to the difference of sales
channels and users from these carriers.

32%

30%

35%

34%

Up to 2 yrs
Maximum 2,000 yen
discount per month(excl. tax)

au Smart Value

Share of Fixed-line broadband
communication service

TOKAI

au

au smartphoneor
au cell phoneor
4G LTE tablet

38%

37%

perdevice

Any two or more services
FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

WIN-WIN

Projected number of the users(communications)(in 10K)

perdevice

Softbank Ouchi Wari Discount
TOKAI

21232426

FY2015FY2016FY2017FY20182728

FY2019FY2020Up to 2 yrs
Maximum 2,000 yen
discount per month(incl. tax)

Softbank
SoftBanksmartphone
cell phone
tablet3

Launch of Intelligent Home Service
The Company launched the Intelligent Home service in November 2017 in cooperation with its
communications Inc.
The smart home market has a strong potential as it is one of the main pillars of the IoT services.
(The market scale is said to grow quintuple in next six years)
The Company will make the best of its sales technique cultivated through the adaptation to businessdiversification in the past, know-how to treat customers and the Group’s strength of sales capability
and customer base.

Home automation function allows easy control of homeelectronics in the house.

Smartphone, PC, etc
IP camera

Smart lock
(Electronic lock)

Motionsensordoors andwindows sensors

InternetHomegateway

Home ElectronicController

SmartLight

All sorts ofsensors

Wholesaleto licensee

Contract to findnew customers,construction
andmaintenanceservices

2.9 mil. customers within
TOKAI GTOKAI Group aims to sell this service as one of thenew commercial products through CATV business.

Each company of TOKAI G

Intelligent Home service provided by its communications
Inc., a CATV provider under Tokyu Group.

4