October 11, 2018

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

Obtainment of Approval of Transfer of Gas Business in Shimonita-machi
TOKAI GAS CORPORATION (Headquarters: Yaizu City, Shizuoka Prefecture; Representative Director:
Shingo Takahashi; hereinafter “TOKAI GAS”), a wholly-owned subsidiary of TOKAI Holdings Corporation(hereinafter, the “Company”), has obtained today an approval of transfer of gas business operated byShimonita-machi from Director-General of Kanto Bureau of Economy, Trade and Industry as detailed in theattachment.
TOKAI GAS, the founding company of TOKAI Group, operates city gas business in Shida area (Yaizu City,Fujieda City, and Shimada City), Shizuoka Prefecture.
Based on the idea that “The city gas business is closely related to the daily lives of people living in its service
area, and the Company’s growth lies on the development of a trusting relationship with customers,” weconduct the following initiatives: 1) strengthening of customer contact points through activities with themes
closely linked with people’s daily lives; 2) proactively promoting advanced energy systems by leveraging
high-level technological capabilities; 3) efforts to build trust through various local contribution activities; and4) developing the business into a “role model” business of TOKAI Group’s TLC Vision.
In the Shimonita-machi area, a new service area, TOKAI GAS will make an effort to provide stable supplyof gas as a local energy company. In addition, the Company will aim to improve customer satisfaction andenhance its service levels by offering the TOKAI Group’s array of lifestyle-related services, thusstrengthening its businesses.
This project will mark the first step of TOKAI GAS in wide-area service deployment for the city gasbusiness. With this as a springboard, we will work toward further expanding the scope of operations of ourcity gas business.

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

October 11, 2018

To whom it may concern
TOKAI GAS CORPORATION

Approval of Transfer of Gas Business in Shimonita-machi
TOKAI GAS CORPORATION (hereinafter “TOKAI GAS”) has received approval today from Director-General of
Kanto Bureau of Economy, Trade and Industry in regard to the transfer of gas business operated by Shimonita-machi.
Based on this approval, TOKAI GAS plans to operate its gas business in Shimonita-machi with April 1, 2019 as theeffective date of transfer.
TOKAI GAS signed a “Provisional Agreement for Transfer of Gas Business in Shimonita-machi” on April 18, 2018
for this project. Following the adoption of resolution on the transfer of gas business at the extraordinary meeting of
the Shimonita-machi Council held on April 20, 2018, the agreement was formed. Thereafter, TOKAI GAS applied
for approval of business transfer on August 29, 2018 with Shimonita-machi. The application has been approved
today.
With this business transfer, Shimonita Branch (tentative) will open in Shimonita-machi, serving as an operationalbase for safety and marketing activities pertaining to gas. A security structure will be developed where gas may
safely be used by customers and latest gas appliance and TOKAI Group’s products and services will be displayedand suggested, respectively.
In preparing for future succeeding business, we will coordinate adequately with Shimonita-machi so as not to cause any
inconvenience to customers. After the transfer of business, TOKAI GAS will offer diverse lifestyle support products andservices under the TOKAI Group’s TCL (“Total Life Concierge”) concept as a one-stop provider of services for all daily
life needs of customers, and will aim to grow into a company operating the city gas business on a nationwide scale.

1．Details on transfer of gas business in Shimonita-machi
DateContentsApril 18, 2018

Signing of “Provisional Agreement for the Transfer of Gas Business inShimonita-machi”

April 20, 2018

Formation of agreement following the adoption of resolution on the transferof gas business at the extraordinary meeting of the Shimonita-machi Council

August 29, 2018

Application for approval of transfer of gas business

October 11, 2018

Approval of transfer of gas business

April 1, 2019

Transfer of business2．Overview of business (data shown are results of FY2016 for Shimonita-machi and FY2017 for TOKAI GAS)
Shimonita-machi Gas Business

TOKAI GAS CORPORATION

Established

April 1, 1963

December 12, 1966

Representative

Hideo Hara, Mayor of Shimonita-machi

AddressNumber of employees

682 Oaza Shimonita, Shimonita-machi,Kanra-gun, Gunma Prefecture
5

Shingo Takahashi, President andRepresentative Director
74-3 Shiotsu, Yaizu City, Shizuoka
Prefecture
169

Service area

Shimonita-machi

Yaizu City, Fujieda City, Shimada City

Number of customers

City gas: 1,336 contracts

Gas sales volume

City gas: 854,000 m3

Net sales of gas

City gas: 143 million yen

City gas: 54,506 contracts(community gas: 1,311 contracts, LP gas:
17,209 contracts)
City gas: 138,111,000 m3(community gas: 159,000 m3, LP gas:4,913 t)
City gas: 10,539 million yen

Gas type

13A

13A[Inquiries about this press release]
Corporate Planning Department
TOKAI GAS CORPORATION

TEL:054-647-7151 HP: https://www.tokaigas.co.jp/