April 20, 2018

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

Notice Regarding Transfer of the Gas Business of 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,
will receive a transfer of the gas business operated by Shimonita-machi as detailed in the attachment.
TOKAI GAS, the founding company of the TOKAI Group, operates the city gas business in the Shida area
(Yaizu City, Fujieda City, and Shimada City) in 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 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 the 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, thus
strengthening 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

Strengthening Customer Connections through Themes Closely
Linked with People’s Daily Lives
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 withcustomers,” TOKAI GAS plans customer contact events with various themes.
We have the top level of sales of gas appliance for household use among the city gas companies
nationwide due to efforts, such as conducting community-based sales activities that attract more than
20,000 people to our showrooms.

Apr.

MayJun.

Aug.

Customers

Thanks event for condominium
owner customers

Tokai Rakugo
Show

7thAnniversaryevent

Lifestyle Information

Jul.

Premium
Renovation
Show

Early
summerTLC
festival

Renovation
CustomerThanks
FestivalUniversal
Renovation
SummerFestival

Proposing alittle luxuriousrenovation

TOKAI
Group’s
products madeavailable forview altogether

Proposinghousehold
equipment
suitable forpeople withnursing careneeds and theelderly

New eventNew eventNew event

Sep.

Oct.

Nov.

Dec.

Mar.

Tokai Rakugo
ShowYear-EndBig Thanks
Festival

Nov. 11
Nursing
Care Day

Feb.

Thanks event for condominium
owner customers

Big Thanks Gas Festival

AutumnRenovation
Big
FestivalJan.

New Year
My HomeFestivalBig
ThanksClearance
FestivalEnd-ofPeriodBig
ThanksFestival

Proposing ideal
homes topeople looking
to buy theirhomes

New event

Information
magazine“Apron”

Cooking classes/seminars/regional cooperation
1* Draft event schedule for FY2018

Proactively Promoting Advanced Energy Systems byLeveraging High-Level Technological Capabilities
There are many factories of major manufacturers of foods, drugs and other products in our service area due to rich
subsoil water sources supplied by Oi River. TOKAI GAS provides clean natural gas to these factories andpromotes highly efficient use of such water resources.
In order to contribute to energy saving and CO2 emissions reduction at customers, we are promoting penetrationand spread of “decentralized” gas cogeneration systems, etc. which are more efficient than “large-scalecentralized” gas cogeneration systems.
Household/business use:
20 million m3

26% of industrial gas sales volume are for customers withcogeneration systems. TOKAI GAS proactively promotes spreadof cogeneration systems toward realization of a lower carbonsociety.

86%
Total sales volume:
138 million m3(Estimated result for FY2017)

Industrial use:
118 million m3

High potentials
Industrial use accounts for 86% of our
total sales volume, and TOKAI GAS isfirmly responding to the needs of energy
saving and CO2 emissions reduction.
Due to penetration of high-efficiency water
heater, etc., gas usage volume perhousehold is the top level in Shizuoka
Prefecture.

Clean energy Natural gas

Sales volume of city gas

Power generation capacity

31million m3/year 12MW 2(* Source: Advanced Cogeneration and Energy Utilization Center JAPAN)

Efforts for Building Trust Through Various Regional
Contribution Activities
TOKAI GAS proactively conducts various regional contribution activities based on the idea that “Thecity gas business is closely related to the daily lives of people living in its service areas, and theCompany’s growth lies on the development of a trusting relationship with customers.”
We offer culture courses and cooking classes where participants can experience the latest gas
appliance, organize events, such as Rakugo event, and cooperates in sports promotion activities.

LIFESTYLE SEMINARCOOKING CLASSCUSTOMER EVENT

Offering various seminars
that help creating a better
life for customers

Offering experience ofactually using the latest
gas applianceInteraction with customers
through Rakugo event, etc.

Culture courses(food/health)
Money, insurance courses,etc.

Offering hands-on
experience of using thelatest gas appliance
190 classes are offeredannually

Inviting owners ofcondominiums and largevolume user customers

SPORTSPROMOTION
Cooperating in sports
promotion through supportof tournaments, etc.
Elementary School Rubber
Ball Baseball TournamentBoys Soccer LeagueTournament3Role Model Business of the TOKAI Group’s TLC Vision
The TOKAI Group provides a variety of lifestyle-related service under the “Total Life Concierge (TLC)”
vision.
Of our 50,000 city gas customers, 37% are also users of the Group’s various other lifestyle-relatedservices. TOKAI GAS will contribute to creation of a better life for customers by leveraging its strengths as
a community-based company.

Customers in the Service Area

TOKAI GAS

Wedding(TCS)

Insurance(TOKAI)LP GasElectricity

City Gas
Aqua(bottledwaterdelivery)(TOKAI)“Total Life Concierge”
Housing(TOKAI)

Low-cost mobilePhone(TCOM)

Internet(TCOM)

CATV
(TCN)

Nursing
care(TLP)

Security(TOKAI)

4April 20, 2018

To whom it may concern
TOKAI GAS CORPORATION

Notice Regarding Signing of an Agreement for the Transfer of the Gas Businessof Shimonita-machiTOKAI GAS CORPORATION (hereinafter, “TOKAI GAS”) signed a “Provisional Agreement for theTransfer of the Gas Business of Shimonita-machi” on April 18, 2018. Following the adoption of theresolution on the transfer of the gas business at the extraordinary meeting of the Shimonita-machi Council
held on April 20, the agreement was formed. After going through various procedures based on the Gas
Business Act, such as obtaining the approval of business transfer from Director-General of the Kanto Bureauof Economy, Trade and Industry, we are slated to receive a transfer of the gas business with April 1, 2019 as
the effective date of business transfer. In preparing for 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 and services under the TOKAI Group’s TLC(“Total Life Concierge”) concept as a one-stop provider of services for all daily life needs of customers, andwill aim to grow into a company operating the city gas business on a nationwide scale.
1.

Details of the agreement
Assets to betransferredScheduled date ofbusiness transfer
2.

(1) Land (premises of gas decompression facilities in each region) (2)Buildings (buildings of gas supply facilities), (3) Structures, (4) Machinery andequipment, (5) Gas conduit pipes, (6) Gas meters, (7) Tools, furniture andfixtures, (8) A set of data, such as electronic account books used in this gas
business, and (9) Other assets used for this gas business
April 1, 2019

Future Schedule
Date
August 2018
April 2019

Details
Filing of an application for approval of business transfer with the Kanto
Bureau of Economy, Trade and Industry, which is the supervisory authorities
Transfer of business3.

Overview of business (data shown are the results for FY2016)
Established
Representative
Address

Number ofemployees
Service area
Number ofcustomers

Shimonita-machi Gas Business
April 1, 1963
Hideo Hara, Mayor ofShimonita-machi
682 Oaza Shimonita,
Shimonita-machi, Kanra-gun, Gunma
Prefecture
5

TOKAI GAS CORPORATION
December 12, 1966
Shingo Takahashi, Representative
Director
74-3 Shiotsu, Yaizu City, Shizuoka
Prefecture

Shimonita-machi

Yaizu City, Fujieda City, Shimada
CityCity gas: 53,958 contracts(community gas: 1,312 contracts, LPgas: 14,561 contracts)
City gas: 144,000,000m3(community gas: 156,000m3, LP gas:4,615t)
City gas: 9,904 million yen
13ACity gas: 1,336 contracts

Gas sales volume

City gas: 854,000m3

Net sales of gas
Gas type

City gas: 143 million yen
13A[Inquiries about this press release]

Corporate Planning Department,TOKAI GAS CORPORATIONTEL: 054-647-7151 HP: https://www.tokaigas.co.jp/

169