Januaary 22, 20166TOKAI Holdings CorporationCnKats
suhiko Tokiita, Presideent & CEOO(Code No.
N 3167 Tok
kyo Stock Exxchange Firrst Section))
To whom itt may conceern,

TLC Membersh
hip Servicce (TLC Points),
ap
powerfull tool for promotinng electrricity salees by TO KAI Gro
oup
TOKAI Hooldings Corp
poration (Headquarter ed in Shizuuoka City, Sh
hizuoka; Kaatsuhiko To
okita
President & CEO) beg
gan acceptin
ng registrattions on Jan
nuary 15, 20016 for its T
TOKAI Smaart Plus,
which combines electrricity and otther servicees provided by TOKAI Group
Gwithihin a single plan.
pUsinggC Membersh
hip Service exclusive too TOKAI Group, theTLC Points, which aree accumulated via TLC
put TOKAI GroupGahea
ad of the com
mpetition inn the sale off householdd electric pow
wer after
goal is to p
liberalizatiion from Appril, and furrther accelerrate busine
ess growth.
Business Growth Basedd on the TLC
C Concept
1. Group B
Based onn its TLC (TTotal Life Cooncierge) coorporate vission, TOKAII Group seees itself as a corporategroup prroviding com
mprehensive
e life servicces aimed att being a on
ne-contract, one-stop, one
call-centter providerr of all lifestyle related products annd services. In additionn to its existting LP Gass,City Gass, Internet, CATV and Aqua
A(bottleed water deelivery) serv
vices, from A
April, Tokaii Group willl
also begiin selling ellectricity prrovided by th
he Tokyo Ellectric Poweer Companyy (TEPCO) under anagency ccontract for the sale of household eelectric pow
wer. It already began acccepting reggistrations
for this sservice fromm January 15,1 2016.
alyst for Lifee Infrastruccture Servicces
2. Electric Power Salees as a Cata
hat TOKAI GroupGmain
nly servicess customers in the current TEPCO
O and Chubuu Electric
Given thservice aareas, it viewws this opportunity to sell electricc power as a chance to both streng
gthen its
existing customer reelationships and hasteen the expan
nsion of its own custom
mer base.
Group has createdcthe TOKAI Sm
mart Plus set plan that offers new eelectricity feef value
TOKAI G
plans sett by TEPCOO to customers who siggn up for ele
ectric powerr in combinaation with TOKAIT※1
Group’s oother LP gaas, Internet and CATV services. TEEPCO will alsoa award points deepending on
nthe electtricity fee.
Further, TOKAI Grroup will alsso provide th
he following
g excusive benefits
bto ccustomers:
Gas Set Pla
anLP G

This is a set value planpfor neww customerss in combinaation with TEPCO’sTneew electricitty fee valuee※2plans.
Inteernet Set PlanCustomeers will receeive a JPY300 discountt (excludingg tax) per month on theeir fiber opttic Internet

service fees, via this set plan which combines TEPCO’s new electricity fee value plans.※3


CATV Set PlanCustomers will receive a JPY200 discount (excluding tax) per month on their CATV service fees,
via this set plan, which combines TEPCO’s new electricity fee value plans.※4
3. TLC Membership Service: TOKAI Group’s Powerful Tool for Sales of Electric PowerTOKAI Group plans to maximize its exclusive TLC Points system in the sale of electric power,awarding special bonus points that differentiate it from other companies.
TLC Points consist of core points earned depending on the amount of services provided by TOKAIGroup, and a maximum of 500 extra bonus points each month (6,000 points per year) based on thenumber of times a service is used. Under the TOKAI Smart Plus plan, electric power will be
added as a service for which customers can earn these bonus points.
TLC Points can be exchanged for WAON, Suica or LuLuCa points, or exchanged for various
products or TLC Tickets that can be used at restaurants and leisure facilities.
TLC Membership Service is a service that is free of joining fees and annual fees for any customerwho has a contract for at least one TOKAI Group service. There are currently 460,000 customer
members, and the TOKAI Group intends to further increase these numbers through the sale ofelectric power.
Given that membership can reduce service cancellation rates by 60% and encourages customer
use of other services, TOKAI Group will continue to actively promote the membership system.
4. Packaged Set Sales of TOKAI Group’s Life Infrastructure Services
TOKAI Group is targeting 500,000 TOKAI Smart Plus contracts by 2020.
Looking ahead, rather than emphasizing only electric power or TOKAI Group’s current line-up ofservices, TOKAI Group intends to release new set plans aimed at all of its lifestyle-relatedservices,
to expand the TLC concept and provide value for customers in its services.
5. Impact on Earnings
No changes have been made to the most recent consolidated earnings forecasts for FY03/2016.
※1

Five points per JPY1,000 (points awarded based on the invoice amount minus the amount of consumption tax, the renewableenergy power promotion surcharge and late fees, etc.) awarded, which can be exchanged for Ponta points or T-points via
TEPCO’s “Kurashi TEPCO” members’ site.

※2

Specific discounts differ depending on each individual customer’s service usage levels.

※3

For customers who sign up for family type, and use the Hikari Denwa fiber-optic telephone service (both new and existing customers).
Applicable to customers in the current TEPCO and Chubu Electric service areas.

※4

For detached house customers, this applies to households with a Digi-Pack Small or higher CATV broadcast course, and thosewith a 50Mbps Internet course (new or existing customers).

Contact: Yoshihiro Taniguchi
Public Relations and Investor Relations Office
TEL: +81-(0)54-669-7676
Email: overseas_IR@tokaigroup.co.jp

New Electric Power Services sold as a set package・Benefits offered to customers who sign up for TOKAI Group services together with the newelectric power service, under the TOKAI Smart Plus set plan.
Set discount for
combining withelectricity service

LP Gas Plan

Attractive monthly
discount ※2

ＬＰ GAS(new customers only)

point

Fiber Internet Plan

50 points toElectricity

Discount of
JPY300/month ※3
Hikari・New electricity fee value plan・Points received based on fee※1

CATV Plan

broadcast service

TLC Membership
Servicebonus points

Discount ofJPY200/month ※4500pts/mth
Bonus points:
2 contracts: 50pts/mth
3 contracts: 150pts/mth
4 contracts: 300pts/mth
5 contracts: 500pts/mth

internet service※1 Five points per JPY1,000 (points awarded based on the invoice amount minus the amount of consumption tax, the renewable energy power promotion surcharge and late fees, etc.) awarded, which can be exchanged for Ponta points
or T‐points via TEPCO’s “Kurashi TEPCO” members’ site.
※2 Specific discounts differ depending on each customer’s service usage levels.
※3 For customers who sign up for family type, and use the Hikari Denwa fiber‐optic telephone service (both new and existing customers). Applicable to customers in the current TEPCO and Chubu Electric service areas.
※4 For detached house customers, this applies to households with a Digi‐Pack Small or higher CATV broadcast course or a 50Mbps internet course (whether new or existing customers).

1

The TLC Membership System (TLC Points)
１．Membership● Membership aimed at individual customers: excludes companies and organizations２．Applicable Services※ Electric power service commences April 2016

Electricity ＬＰ Gas

City Gas

InternetＣＡＴＶAquaSecurity① Core points
For these five services, customers
receive one TLC point for each
JPY200 of monthly services used.

② Bonus points
Customers receive TLC Points when
they sign up for any two or more ofthese seven services.
※2 contracts=50TLC points/month

3 contracts=150TLC points/month

Example of TLC Points awarded

4 contracts=300TLC points/monthe.g.: JPY8,000/mth

5 or more contracts=500TLC points/monthe.g.: JPY4,000/mth

pointe.g.: JPY6,000/mth

Services currently
received

Core points
Bonus points

30 pts/mth

Adding TOKAI electric
power service

0 pts/mth
300 pts/mth

Adding otherservices

60 pts/mth

TLC Membership
Service390 pts/mth2

Point exchange partners for TLC Points
 TLC Points can be exchanged for WAON, Suica or LuLuCa points, or exchanged for various
products or TLC Tickets that can be used at restaurants and leisure facilities
Exchange for other points
 Can be used at AEON, Maxvalu, MINISTOP, FamilyMart,
Lawson and other participating stores
point※”WAON” is a registered trademark of AEON Co., Ltd.

 Can be used on train and bus fares, and for shopping
point※”Suica” and “Suica point” are registered trademarks of East Japan Railway Company

 Can be used at Shizutetsu Store, Shinshizuoka Cenova,
and other participating stores

point

Exchange for TLC Tickets, and used at stores that accept
 Can be used as coupons for payment at TLC Ticket
participating stores including restaurants, leisure facilities,
etc.

Stores accepting TLC Tickets:
371 stores(as of December 31, 2015)

Exchange for products①TOKAI group products②Selected Matsuzakaya products③Coupon vouchers Can be exchanged for TOKAI Group’s bottled water
delivery, selected gourmet and other products from
Matsuzakaya stores, or coupon vouchers3

Group Membership System: Monthly membership and applications■ Group membership system launched in December 2012
■ Member numbers exceeded 460,000 in December 2015

460k
5050
Appications/mth

Members

400k

45

45

4040

300k

35

35

30

25

25

20

20

100k

15151010

55Applications/month (1,000’s)

Members (1,000’s)

200k

30

0012

12

FY03/123456789

10

FY03/131112

12345678910FY03/14

1112123456789101112

FY03/15

4

TLC Membership System: The impact on cancellations and cross-selling・The cross-selling rate for TLC members is 5.6 times that for non-members.
・The cancellation rate for TLC members with multiple services is lower by 60%
compared to non-members with only a single service transaction
Cross-selling rate
Non-TLCTLC非会員members

Actual figures for the eight months from April to November 2015

0.29%

5.6 times the cross-selling

TLC
TLC会員
members

1.61%

0.00%

0.20%

0.40%

0.60%

0.80%1.00%

1.20%

1.40%

1.60%

1.80%

Cross‐selling rate based on actual figures for April through November 2015 (customers with multiple contracts in a month/customers as of the end of the previous month)

Cancellation rate

Actual figures for the eight months from April to November 2015

Non-TLCmembers
TLC非会員/単独取引/single transaction

TLC
members
TLC会員/複数取引/multiple transactions
0.00%

5.90%

Cancellation rate 60% lower

2.40%
1.00%

2.00%

3.00%

Cancellation rate: Cancellations between April and November 2015/customers as of April 1, 2015

4.00%5.00%

6.00%

7.00%

5