First Half of the Fiscal
Year Ending March 31,
2024 Notes to FinancialResults
TOKAI Holdings Corporation(Code No. 3167)

November 9, 2023
©2023 TOKAI Holdings Corporation. All Rights Reserved.

Financial Results for the First Six Monthsof the Fiscal Year Ending March 31, 2024

©2023 TOKAI Holdings Corporation. All Rights Reserved.

1

Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2024
Net sales for the first six months show year-on-year growth for the third consecutive fiscal year to a new record high, chiefly
reflecting an increase in customers in Energy, CATV and other businesses and the expansion of the Information andCommunications business for corporate clients.

Operating profit for the first six months remained flat year on year, explained mainly by a decrease in gas sales volume forhouseholds attributable to high air temperatures, which was offset by a profit hike after growth in the number of monthly feepaying customers accompanying an increase in the number of customer accounts.

Ordinary profit and profit attributable to owners of parent increased markedly, due mainly to the easing of the burden arisingfrom the share of profit of entities accounted for using the equity method that arose in the previous fiscal year.

YoY
H1 FY03/23 results(FY2022_2Q)

H1 FY03/24 results% change(%)

Change105,226

104,110+1,115+1.1

Operating profit

4,254

4,253+1+0.0

Ordinary profit

4,355

2,432+1,923+79.1

Profit attributable toowners of parent

2,219

147+2,072+1,403.4

EPS (yen)

17.00

1.13+15.87+1,406.6

Net sales©2023 TOKAI Holdings Corporation. All Rights Reserved.

(Net sales and profit: million yen; EPS: yen)

2Steady Expansion of Customer Base in Core BusinessesThe number of continuing customers as of September 30, 2023 stood at 3,328 thousand, an increase of 28 thousand from 3,299
thousand at the beginning of the fiscal year.

The earnings base continued to expand in the gas business, the CATV business, the Hikari Collaboration business and the
LIBMO business.

-3

3,328+13
Others+2AquaMobileCATV©2023 TOKAI Holdings Corporation. All Rights Reserved.

+16

3,299

City gas

FY2022
ResultHikariCollaboration+4LIBMO+4-7

ISP, etc.

GasLP gas

Information andCommunications+16+0Broadcasting+2Others+1-5+1Communications +11

Customer count(Thousand)* Rounded to the nearest thousand. Adjustment is made in Others for duplicate communication
services for ISP and CATV carrier plans.

FY2023
H1 Result3

Net Sales and Operating Profit by Business Segment

Net sales

H1 FY03/24 results

H1 FY03/23 results

Energy42,95244,053-1,101-2.5%

Information andCommunications

27,457

26,078+1,378

+5.3%

CATV

17,732

16,574+1,157+7.0%

Construction, Equipment,and Real Estate

10,943

11,486-543

-4.7%

Aqua

3,883

3,838+44+1.2%

Others

2,257

2,077+180+8.7%

105,226

104,110+1,115+1.1%

869

1,330-460-34.6%

Information andCommunications

2,828

2,320+507+21.9%

CATV

3,135

3,052+82+2.7%

Construction, Equipment,and Real Estate578

589-10-1.8%

Aqua

364

234

+129+55.1%

Others-3,520-3,274-247-

4,253+1+0.0%

Total©2023 TOKAI Holdings Corporation. All Rights Reserved.

EnergyOperatingprofit

4,254

Total

YoY% change

Operating profit disregards the allocation of indirect costs and other costs

4Changes in Operating Profit by Segment
Profit fell in the Energy business, mainly following a decline in gas sales volume for households partly due to high airtemperatures.

Profit grew in the Information and Communications business, chiefly as a result of cutting expenses for gaining customers in theInformation and Communication business for consumers.

The CATV and Aqua businesses increased profits mainly following a rise in customers.

Aqua
Information andCommunications

42.5©2023 TOKAI Holdings Corporation. All Rights Reserved.

-4.6

+5.1

CATV+0.8-0.1
Building facilities
Real estate+1.3-2.5Others

42.5

EnergyOperating profit(100 million yen)

FY2022H1 Result

FY2023
H1 Result* Changes in operating profit disregard allocation of indirect costs

5Operating Profit by Segment (Energy)Active efforts to win customers continued. The resulting increase in the number of customers was a positive factor for profit.



Operating profit fell, mainly because of a decline in gas sales volume for households due to high air temperatures and a rise inpersonnel expenses resulting from pay increases.

Increase in customers+1.8-4.9

13.3-1.5

Unit consumption©2023 TOKAI Holdings Corporation. All Rights Reserved.

Increased personnelexpenses

8.7

100 million
yenof increase
Decrease
500 million year
yen on year
year on year
FY2022H1 ResultOperating profit(100 million yen)

* The increase in personnel expenses is due to the impact of higher wages.

FY2023
H1 Result
6Changes in Average TemperatureHigher than the previous year in the first half of FY2023 (April to September)

Almost the same level as the previous year is anticipated for the second half (October to March) and beyond.

Trend in Monthly Average Air Temperature(°C)

Remained about 1 to 2°
C higher than the previous year

3530
25

24.5

FY202320.0

2016.8©2023 TOKAI Holdings Corporation. All Rights Reserved.

15

13.6

10

11.9

28.6

28.3

27.3

26.5

24.9

For the second half and beyond, it is expected
to be nearly the same as in the previous year.

22.5
19.4

16.3

16.1
12.4

FY2022

8.6

5

6.3

5.7

JanFeb0

AprMayJunJulAug

SepOctNovDecMarSource: Japan Meteorological Agency

7

Operating Profit by Segment (Information and Communications forIndividual Customers)
Profit in broadband and LIMBO businesses increased with a rise in the number of customers.

A reduction in expenses involving in winning customers by revising acquisition routes and other means also served as a positivefactor. Operating profit surged 500 million yen year on year.

Others+1.5

LIBMO
Broadband. etc.

5.1+1.4+1.9©2023 TOKAI Holdings Corporation. All Rights Reserved.

0.3
Up 500 million yen year on year
Operating profit(100 million yen)

FY2022H1 Result

FY2023
H1 Result8

Operating Profit by Segment (Information and Communications for
Corporate Customers)
A strong performance in cloud services and carrier services resulted in a surge in profits.

There were negative impacts from soaring electricity prices and rising personnel expenses following pay increases.

Cloud service, etc.

-0.8
+2.1

22.8

Electric power-1.0
Increased personnel
expenses

23.2©2023 TOKAI Holdings Corporation. All Rights Reserved.

Up 30 million yen year on year
Operating profit(100 million yen)

FY2022H1 Result* The increase in personnel expenses is due to the impact of higher wages.

FY2023
H1 Result9

Operating profit by Segment (CATV)Positive sales activities helped to expand the customer base. The increase in the number of customers acted as a factor driving
profit upwards.

Operating profit rose 100 million yen with reductions in SG&A expenses offsetting the impact of rising personnel expenses
associated with pay increases.

Increase in customers
SG＆A expenses, etc.

-1.0+1.5+0.3

30.9

Increased personnelexpenses

30.1©2023 TOKAI Holdings Corporation. All Rights Reserved.

100 million yen increase year on year
Operating profit(100 million yen)

FY2022H1 Result* The increase in personnel expenses is due to the impact of higher wages.

FY2023
H1 Result
10

Operating Profit by Segment (Construction, Equipment and Real Estate)In building, real estate and others, profit grew with the strong performance in rental of real estate and building management
support, among other factors.

In sales and installation of equipment and renovation, profit declined due mainly to delays in projects for which orders werereceived.

Construction and Real estate

-0.3
+1.1

Equipment
construction, etc.

-0.4Renovation

5.9-0.5
Increased personnel
expenses

5.8©2023 TOKAI Holdings Corporation. All Rights Reserved.

Remained on a parwith the year-ago level
Operating profit(100 million yen)

FY2022H1 Result* The increase in personnel expenses is due to the impact of higher wages.

FY2023
H1 Result
11

Operating Profit by Segment (Aqua)
In addition to sales activities during events at large commercial facilities and elsewhere, non-face-to-face sales activities
including the online cultivation of customers and telemarketing were conducted.

Profit surged 100 million yen year on year, following a rise in customers and a revision to the unit cost of customer acquisition toreduce the expenses involving in winning customers.

Acquisition costs, etc.

Increase in customers

-0.5

+0.9

Increased personnel
expenses

3.6+0.9©2023 TOKAI Holdings Corporation. All Rights Reserved.

2.3
100 million yen increase
year on year
Operating profit(100 million yen)

FY2022H1 Result* The increase in personnel expenses is due to the impact of higher wages.

FY2023
H1 Result
12Full-year Forecast for Fiscal Year Ending
March 31, 2024

©2023 TOKAI Holdings Corporation. All Rights Reserved.

13

Consolidated full-year financial results forecastNet sales are forecasted to rise, attributable to a continued increase in customer accounts mainly in principal businesses and toearnings increase following expansion of areas served.

Operating profit is forecasted to remain unchanged year on year, chiefly reflecting expenses for acquiring customers andpersonnel revitalization.

Ordinary profit and profit attributable to owners of parent are expected to surge, after the easing of the burdens arising from theshare of profit of entities accounted for using the equity method that arose in the previous fiscal year.
(Millions of yen)
FY03/24 forecast(April 1, 2023 toMarch 31, 2024)

FY03/23 results(April 1, 2022 toMarch 31, 2023)

YoY
Change% change

240,000

230,190+9,810+4.3%

Operating profit

15,00014,919+81+0.5%

Ordinary profit

15,00013,289+1,711+12.9%

Profit attributable toowners of parent

8,500

6,465

+2,035+31.5%EPS (yen)

65.10

49.41

+15.69+31.8%

3,384,000

3,299,000+84,000+2.6%Net sales©2023 TOKAI Holdings Corporation. All Rights Reserved.

Customer count at endof fiscal year

14Dividend forecast

In accordance with the Company's policy of paying constant and stable dividends, an interim dividend of 16 yen per share and a
year-end dividend of 16 yen per share are planned, for an annual dividend of 32 yen per share.

The dividend forecast (announced on May 9, 2023) remains unchanged.

Interim dividend

Year-end dividend

Commemorative dividend

60
50

60.0%

54.7%

52.9%

47.2%

46.7%
43.4%

©2023 TOKAI Holdings Corporation. All Rights Reserved.

30201212yen/shareyen/share

6644.5%

2828

28

28

yen/shareyen/shareyen/shareyen/share

44.6%

30yen/share635.1%

070.0%

64.8%

4010

Payout ratio

14yen/share

14666FY2014

FY20151446.7%

50.0%

32

32

yen/shareyen/share

171632

yen/share 40.0%
1611
FY2016

30.0%
20.0%

118

FY2013141649.2%

14141414151616

FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023(forecast)

10.0%
0.0%

15Initiatives (Key Themes) and Progress under Medium-Term Management Plan 2025

 Growth of business earning power- New launch of a sales office for LP gas sales in the city of Ise in Mie Prefecture, to expand theoperating area and customer base
- In new businesses, two camping sites are set to begin operation in Shizuoka Prefecture.

 Strengthening of foundations for sustainable growth©2023 TOKAI Holdings Corporation. All Rights Reserved.

- Accelerate energy conservation and decarbonization in our own facilities in a bid to help create adecarbonized society. Expand sales of environmental products, including a PPA model of solar powergeneration (TOKAI ZERO SOLAR), to customers

 Full energization of human capital and organizations- Revise the pay system, enhance childcare support measures and introduce a re-skilling program,among other initiatives

16

The performance forecasts and forward-looking statements in these materials are based on
information currently available to the Company, and include potential risks and uncertainties. Please
be aware that due to changes in a variety of factors, actual results may differ materially from theprojections and other forward-looking statements in these materials.
Amounts are rounded down to the nearest hundred yen. Other figures are rounded off.

Please contact us with any questions regarding these materials.

©2023 TOKAI Holdings Corporation. All Rights Reserved.

Public / Investor Relations Office, Tokai Holdings Corporation
2-6-8 Tokiwa-cho, Aoi-ku, Shizuoka 420-0034, Japan
Phone: +81- (0)54-273-4878
https://www.tokaiholdings.co.jp/english/
e-mail: overseas_IR@tokaigroup.co.jp

17