August 30, 2018

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

Start of the Cloud-Type Network Service for Corporations
Using Flexible, Responsive, and Highly Scalable SD-WAN Technology
We announce as shown in the attached document that a network service using the SD-WAN(Software-Defined Wide Area Network) technology will be started from September 3, 2018, as part ofBroadLine, the communications service for corporations offered by our 100% subsidiary TOKAICommunications (hereinafter “TOKAI COM”).
TOKAI COM’s BroadLine provides base-to-base communications services for corporations and services forconnection to major public clouds by using optical fiber networks owned by TOKAI Group.
This new network service enable quick configuration of a flexible and highly scalable internal network
connecting multiple bases.
Now that business requires more speed, it is anticipated that this type of networks will become themainstream of multi-base networks in the future because they can quickly be aligned to business expansion
or additional bases. With this service, TOKAI Group will also seek to further expand our business forcorporations.
TOKAI COM will continue supporting cloud services demanded by customers and the overall process frominstallation of infrastructures to design, building, and operations in a one-stop and integrated manner byleveraging technologies and know-how TOKAI COM has long cultivated as a system integrator to contributeto customers’ business development.

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

August 9, 2018

To whom it may concern
TOKAI Communications Corporation

Start of Providing BroadLine CVR, the Cloud-Type Network Service Using theSD-WAN Technology-- This enables easy zero-touch deployment of visualized, centrally controlled,and line-independent multi-base networks -TOKAI Communications Corporation (President and CEO: Yasuhiro Fukuda, hereinafter “we”) will start
providing CVR, the cloud-type network service using the SD-WAN (Software-Defined Wide Area Network)
technology, as part of BroadLine, our communications service for carriers and corporations, from September
3, 2018.
Through this service, we will realize comfortable network environments for our customers by providing awide variety of flexible, responsive, and highly scalable router functions demanded in the era of cloudutilization.
1. Background of the service provision
As corporations’ use of clouds has increased quickly in recent years, many corporations today can quickly
deploy information system resources that can be used as much as necessary whenever required, while
suppressing the initial investment. On the other hand, many of existing network services used bycorporations are limited in flexibility, responsiveness, and scalability compared with clouds that arecontinuously developing.
Based on this situation, we will newly start a cloud-type network service using the latest SD-WANtechnology.
This service will overcome challenges corporate networks are facing today, including response to theexpanding use of cloud services and the increase and concentration of traffic; the initial investment(capitalization, etc.) for network renewal and the establishment of a continuous operation and maintenancestructure; response to the increase of mobile use and bases; and ensuring security for the overall network. By
doing so, we will realize network environments that can respond to the changing corporate environment
quickly and flexibly.
2. Service overview
In this service, network devices (CVR devices) are rented to a customer’s bases for a reasonable price. Oncethe customer simply connects these devices to lines supported by this service, network configuration is
automatically completed and a visualized and centrally controlled cloud-type network is easily realized.
(1) Service name:BroadLine CVR (SD-WAN) service*CVR: Short for Cloud Various Router, meaning that it provides
various virtual router functions.

(2) Provision start date:

September 3, 2018 (planned)(3) Supported area:

Throughout Japan(not available in some areas including remote islands andmountainous regions.)

(4) Supported connection
lines

:

1) Our and other companies’ internet connection services(* details are described separately)2) Our wide area Ethernet service BroadLine “Relation Ethernet”
and “Multi-point Ethernet” (planned in December 2018)3) Our low-priced SIM service LIBMO (planned in January 2019)(5) Minimum use period

1 month* For the minimum use period of connection lines, please see thecontract of each line.

3.

Service price (tax not included)(1) Basic charge (per 1 contract):Initial charge 60,000, yen, monthly charge 40,000 yen(2) CVR device (per 1 unit):

Initial charge 25,000 yen, monthly charge at least 13,000 yen* Separate contracts with charges are required for supported connection lines (direct contracts between
customers and the providers of supported connection lines)..

4. Supported connection lines “(1) Our and other companies’ internet connection services”
The following are internet connection services supported from the start of this service:• @T COM• TOKAI Network Club (TNC)• Our and other companies’ internet connection services we have already verified* We are happy to confirm the support status of any internet connection service line you consider as a connection
line before concluding a contract.
* Supported connection lines will increase sequentially in the future.

5.

Image of the service provisionInternet breakout(o365 connection supported)
Start planned inNov. 2018

Customer’sbase
Our and other companies’
internet connection
services

SaaS-typeOfficeInternet

Major
cloud

CVR
devicesStart planned in Sep. 2018

Connection with major clouds
through closed networks

Customer’s
base

CVR
devices

Our wide area Ethernet
services(closed networks)
Relation Ethernet
Multi-point EthernetCVR(SD-WAN)

CVRcontroller
Our low-priced SIMservice (mobile 4G/LTE)

Start planned sequentially by Mar. 2019

Customer’sbase

Our fixedlines

Start planned in Dec. 2018
Customer’sbaseVisualization andcentral control via linkage
with CVR devices

Redundant
configuration

Our mobilelines
Start planned in Jan. 2019

CVR

• Mountainous
devicesareas• Temporarystores• Fields, etc.

Start planned in Jan. 2019

Major
cloud

CVRdevices

6.

Service features(1) Easy deployment with zero-touch provisioning
This service rents CVR devices equipped with a wide variety of flexible, responsive, and highly
scalable router functions for a reasonable price. Network configuration is automatically completed
simply by connecting these devices to supported lines, so that customers can easily deploy
base-to-base networks.
(2) Quick start of using the service, short-term use also available
CVR devices can be delivered to a customer’s bases within around 2 weeks after the application (ourreceipt of configuration information) (please consult separately in the case of 10 or more bases). Inaddition, supported connection lines include FLET’S Hikari and mobile lines, meaning that customers
can quickly start using this service. The minimum use period is set to be 1 month, so we can meetcustomers’ needs for short-term use including system connection verification and data migration.
(3) Visualized and centrally controlled cloud-type networks
Linkage between CVR devices at the customer’s bases and the CVR controller realizes visualizationand central control of the network. Customers can check the status of communications, devices anduse of applications at their bases anytime by using management tools.
(4) Realization of access-independent flexible deploymentThis service supports a variety of connection lines with different quality, speed or technologies,
including FLET’S Hikari, mobile, and wide area Ethernet. This service also supports redundant access
via fixed and mobile lines, and customers can deploy an optimal network flexibly according to theexisting network environment, usage and budgets.
(5) Streamlining through transmission technologies to suppress the traffic flow rate
This service uses the latest technologies that suppress the frame size at the time of encryption andauthentication while ensuring security compared with the existing encryption scheme (IPsec).
Suppression of the traffic flow rate contributes to saving customers’ costs for pay-for-use connectionlines.
7. Service road map (plan of future provision)
The following is the plan to provide this service in the future. We seek to enhance customer convenience by
actively expanding the service.
September 2018 :Start of service ((1) Our and other companies’ internet connection services)

November :Internet breakout (Connection to SaaS-type offices supported)

December :Expansion of supported access lines ((2) Our wide area Ethernet services(closed networks))

January 2019 :Expansion of supported access lines ((3) Our low-priced SIM service (mobile))
Redundant access via fixed and mobile lines supported

March :

Connection with major cloud services via closed networks

8. The Website of BroadLine, the communications service for carriers and corporations
For our various communications services for carriers and corporations, please see the following website:
https://www.broadline.ne.jp/* Names of companies, products, services, logos, etc. mentioned herein are trademarks or registered trademarks of
their respective owners.
[Inquiries about this service]

Service RepresentativeBusiness Promotion Department, Corporate Sales Division
TOKAI Communications Corporation
E-Mail: info@broadline.ne.jp
Website: https://www.broadline.ne.jp/