Financial Results Briefing for the First Half of the Fiscal Year Ending
March 31, 2020 - Summary of Questions and Answers Date andFriday, November 1, 2019 10:30 a.m. - 11:30 a.m.

Time
Presenter

TOKAI Holdings Corporation

President & CEO

Katsuhiko Tokita

TOKAI CORPORATION

Representative Director and

Katsuo Oguri

President
TOKAI Communications Corporation

Representative Director andYasuhiro Fukuda

President
TOKAI Cable Network Corporation

Representative Director andMitsuhaya Suzuki

President
TOKAI GAS Corporation

Representative Director andShoji Uematsu

President
TOKAI Holdings CorporationDirector and Managing

Hidetsugu Mizoguchi

Executive Officer
TOKAI Holdings Corporation

Executive Officer and Head ofToshikatsu Nakamura

Next Generation Management
Strategy Division
TOKAI Holdings Corporation

Member of the Board andToshinori Nakamuracharge of Corporate
Management Division
Chairperson

TOKAI Holdings Corporation

Executive Officer and Head of

Yoshihiro Taniguchi

Investor Relations OfficeQ.

How do you intervene in the acquired company and promote TLC?

A.

The way of intervention differs between CATV, City gas and LP gas. It will take considerable time for
Nissan Tri Star Construction, Inc. acquired this quarter. The chairman will be TOKAI's President Oguri,who will instill the spirit of business and policies. Then, those who have been engaged in housing,construction, and equipment construction for many years will be assigned to senior management and will
be given specific guidance. On the other hand, we will learn from civil engineering and public works
know-how from Nissan Tri Star Construction, Inc.
In terms of TLC, we can sell electricity because we are affiliated with TEPCO, and we have an Aqua
business. It would be difficult to sell all TLC products, but since Nissan Tri Star Construction, Inc. has aregional network, it would be reasonable to just sell various products of our group there.
Shimo-Nita Town started its city gas business in April this year, but until then it was a town-run gas
company and specialized in supplying only city gas. Currently, there are about 1,300 city gas customers,
but in the first half there were about 100 contracts for aqua and LIBMO, mainly for electricity. In thecurrent fiscal year, we aim to acquire 300 contracts other than city gas, and we will increase the rate of1multiple contracts in the region and actively promote TLC. Until now, there were various regulations
concerning town management, and business other than city gas was not possible, but we can sell various
products in the future because we have acquired it. It is proceeding smoothly as planned.
Q.

CP (Contract Price) has been on a downtrend. How will this affect your company's procurement
costs in the second half and next year? Is the competitive environment changing?

A.

CP has many uncertainties including the situation in the Middle East. The first half of the year was on adowntrend, but since October it has been rising, and the exchange rate has been rising too.
It is not a situation to cut down on sales prices but a wait-and-see.
Sales prices are not affected because they are based on purchase prices. We will respond while watching
the market. For industrial and commercial use, it is linked to the purchase price.
At present, there is no price reduction among other companies, but competition is fierce and sales arecontinuing to be sold at low prices to acquire customers. In particular, competition in the Kanto regioncontinues to be fierce, and the area is expanding.

Q.

Are there any new negative factors in the second half compared to the initial plan?

A.

At present, no specific negative factors have been identified in the second half, but due to ongoing M &A, due diligence costs are expected to be incurred. In addition, since the competitive environment issevere, it is necessary to anticipate costs for acquiring customers.

Q.

Regarding the potential of new M & A, do you consider the Tohoku region of the city gas business tobe a promising area?
Will there still be M & A like Nissan Kogyo?

A.

We will continue to work on M & A for city gas. Each case is a case-by-case, so we will carefully
research and consider future earnings, including the development of TLC, and apply for public offering.
The reasons for the acquisition of Nissan Tri Star Construction, Inc. include the fact that the company has
already entered the Chukyo area of Aichi, Gifu and Mie, established T & T Energy, and started the city
gas retail business. The biggest reason is that the company is a comprehensive construction company.
The Group also had its construction and real estate businesses in Shizuoka, Aichi, and Kanagawa
Prefectures, but this M & A triggered the exchange of human resources with the company, incorporating
the know-how of the civil engineering business that the Group lacked. We would like to develop acomprehensive construction business in the area where we are developing.
Currently, we are examining PMI, such as how to manage each other in the future.

2Q.

What do you think about the potential of the Kyushu area?

A.

Since the area has a large number of households, it is currently working to acquire LP gas customers withsales staff. When it reaches a certain scale, we will add other products and services.

Q.

Please tell about T & T Energy's main business activities, bases and methods.

A.

Sales are conducted by local dealers in the Chukyo area.
Already, ten dealers have raised their hands and are currently holding briefings. These 10 companies will
have about 250,000 LP gas customers, and they will lead the business development.

3