Financial Results Explanation
Material for the Fiscal YearEnding March 2024
TOKAI Holdings Corporation(Code No. 3167)

May 24, 2024
©2023 TOKAI Holdings Corporation. All Rights Reserved.

Financial Results for the Fiscal YearEnding March 31, 2024

©2023 TOKAI Holdings Corporation. All Rights Reserved.

2

Financial Results for the Fiscal Year Ending March 31, 2024
 Sales increased for the seventh consecutive period, reaching a record high, due to an increase in
the number of customers in the energy and CATV sectors, as well as the expansion of ourcorporate information and communication business.
 Despite a decrease in the volume of household gas sales due to high temperatures, operating profit
was 15.5 billion yen, an increase of 600 million yen from the previous period, due to an increase inmonthly billing due to an increase in the number of customers.
 Ordinary profit and net income for the current period improved significantly as the burden ofequity-method investment losses incurred in the previous period was reduced.
YoY

FY03/23 results(FY2022)

FY03/24 results% change(%)

Change231,513230,190+1,322+0.6

Operating profit

15,511

14,919+591+4.0

Ordinary profit

15,531

13,289+2,241+16.9

Net income

8,481

6,465+2,015+31.2

EPS (yen)

64.94

49.41

+15.53+31.4

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

(Net sales and profit: million yen; EPS: yen)3

Steady Expansion of Customer Base in Core Businesses The number of ongoing transaction customers at the end of the current period increased by 59,000
from 3,299,000 at the beginning of the period to 3,358,000.
 The earnings base continued to expand in the gas business, the CATV business, the HikariCollaboration business and the LIBMO business.

-53,358+26
Others+5AquaMobile

CATV©2023 TOKAI Holdings Corporation. All Rights Reserved.

Information andCommunications+333,299

City gas

FY2022
Result+10LIBMO+9-14

ISP, etc.

Gas
LP gasHikariCollaboration+33+0Broadcasting+5Others+2-9+2Communications +21Customer count(Thousand)* Rounded to the nearest thousand. Adjustment is made in Others for duplicate communication
services for ISP and CATV carrier plans.

FY2023Result4

Sales and Operating Profit by Segment
Current periodresults

Sales

YoYRateEnergy100,974

102,528-1,553-1.5%

Information andCommunications

56,66953,945+2,723

+5.0%

CATV

35,761

34,500+1,260+3.7%

Construction,Equipment andReal Estate

25,03826,809-1,770-6.6%

Aqua

7,743

7,529

+213

+2.8%

Others

5,325

4,876+448+9.2%

231,513230,190+1,322+0.6%

Energy

8,399

7,384

+1,014+13.7%

Information andCommunications

5,645

5,270

+375

+7.1%

CATV

6,200

6,184

+16+0.3%

Construction,Equipment andReal Estate

1,900

2,043-142-7.0%

647

533

+114

+21.6%-7,283-6,497

-785

-

15,511

14,919

+591

+4.0%

Total
©2023 TOKAI Holdings Corporation. All Rights Reserved.

Operatingprofit

Previous period
results

Aqua
Others・Adjustment

Total※The figures are based on a pre-allocation of indirect costs.

5Changes in Operating Profit by Segment Despite a decrease in household gas sales due to high temperatures, the energy business saw anincrease in profits due to an increase in the number of customers and efforts to reduce procurement
costs.
 The information and communication business saw an increase in profits due to the strong performanceof the corporate business and efforts to reduce customer acquisition costs in the consumer business.
 The CATV and Aqua business saw an increase in profits due to an increase in the number of customers.

Information andCommunications
Energy3.8

Operating profit(100 million yen)

CATV

0.2

Aqua-1.4©2023 TOKAI Holdings Corporation. All Rights Reserved.

Building facilities
Real estate

1.1
-7.9

10.1

155.1
OthersAndAdjustments

149.2+600 million yen YoY

FY2022
Result* Changes in operating profit disregard allocation of indirect costs

FY2023Result6

Segment Operating Profit (Energy)
 We continue to actively pursue customer acquisition, resulting in an increase in the number ofcustomers and an increase in profits.
 Despite a decrease in sales volume of household gas due to high temperatures and an increase inlabor costs due to wage hikes, we were able to achieve a profit increase of 1 .01 billion yen comparedto the previous period by implementing measures such as reducing procurement costs.
Operating profit(100 million yen)

Procurement costs, etc.

-3.0
Increase in customer numbers+18.5+5.2

Increase inlabor costs

84.0-10.5©2023 TOKAI Holdings Corporation. All Rights Reserved.

73.8
Reduction in unit consumption

前年同期比1億円の 増益+1.01 billion yen YoY

FY2022※Increase in labor costs due to wage hikes

ResultFY2023Result7

Changes in Average Temperature The temperature in the fiscal year 2023 remained higher than the previous year throughout the year.
 The average temperature in the fiscal year 2023 was 17.4℃, an increase of 0.9℃ from the previousyear.
Trend in Monthly Average Air Temperature(°C)

Remained about 1 to 2°
C higher than the previous year3528.6

30

27.3

FY202320.0

2024.9©2023 TOKAI Holdings Corporation. All Rights Reserved.

13.6

1011.9FY2023

YoY

16.5℃

17.4℃+0.9℃

26.5
22.5

16.8

15Avg. Temp.

24.8

24.5
25

FY2022

28.3

17.8

19.4
16.3

16.1

11.5
12.4

FY2022

8.0

8.3
6.4
8.6

5

6.3

5.7

Jan.

Feb.

0Apr.

MayJun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Mar.

Source: Japan Meteorological Agency

8Segment Operating Profit(Information and Communication for Consumer) The broadband business and LIBMO achieved higher profits due to an increase in customer numbers.
 Increased efforts in customer acquisition have led to an increase in customer acquisition costs, butthere has been a profit increase of 220 million yen compared to the previous period.

Operating profit(100 million yen)

LIBMO

-0.5
Broadband, etc.

+1.9

Others7.8©2023 TOKAI Holdings Corporation. All Rights Reserved.

+0.8

5.6

前年同期比1億円の 増益+220 million yen YoY

FY2022

FY2023ResultResult9

Segment Operating Profit(Information and Communication for Business)
 The network services and cloud services have been progressing smoothly, resulting in increased profits.
 Despite the impact of rising electricity costs and increased labor costs, we achieved a profit increase of
150 million yen YoY.

Operating profit(100 million yen)

Ccoud services, etc.

-1.0
+4.5

©2023 TOKAI Holdings Corporation. All Rights Reserved.

47.2

-2.0

Electricity costs

Increase inlabor costs

48.7

前年同期比1億円の 増益+150 million yen YoY

FY2022
ResultFY2023※Increase in labor costs due to wage hikes

Result10

S e g m e n t O p e r a t i n g P r o f i t ( C AT V ) Increased profits due to an expanded customer base through proactive sales activities.
 Despite the negative impact of increased labor costs due to wage hikes, achieved a profit increase of
20 million yen YoY by controlling selling and administrative expenses, etc..

Operating profit(100 million yen)

Increase in customer base

+1.4-2.0

administrative expenses,
etc.

+0.8

61.8

62.0

Increase inlabor costs©2023 TOKAI Holdings Corporation. All Rights Reserved.

+20 million yen YoY

FY2023

FY2022Result※Increase in labor costs due to wage hikes

Result11Segment Operating Profit(Construction, Equipment and Real Estate) Increased profits in construction and real estate, driven by smooth sales of developed land.
 Due to a decrease in large-scale civil engineering and facility construction projects, there has been anoverall decrease in profits of 140 million yen.

Construction and Real Estate

+2.2

20.4

Operating profit(100 million yen)

-1.5
Facilities Construction, -1.1
etc.
Renovation-1.0©2023 TOKAI Holdings Corporation. All Rights Reserved.

Increase inlabor costs

19.0-140 million yen YoYFY2023

FY2022
Result※Increase in labor costs due to wage hikes

Result12

Segment Operating Profit (Aqua)
 Increased profits due to customer acquisition through various channels, including event sales at largecommercial facilities and non-face-to-face sales such as web acquisition and telemarketing.
 Despite the negative impact of increased labor costs due to wage hikes, achieved profit growth driven
by an increase in customer numbers.
Operating profit(100 million yen)

Increase in customer base

△1.0+2.1
Increase inlabor costs

6.5

5.4
©2023 TOKAI Holdings Corporation. All Rights Reserved.

+100 million yen YoY

FY2023

FY2022
ResultResult※Increase in labor costs due to wage hikes

13Tr e n d i n C a s h F l o w
 We generated over 30 billion yen in operating cash flow this period. Investment cash flow was 18.8billion yen due to factors such as area expansion and the acquisition of shares in REDC, a company
that operates a hydropower business overseas. As a result, free cash flow was 11.2 billion yen.
 Financial cash flow was 9.7 billion yen due to repayment of interest-bearing debt and dividend
payments, among other factors.

322(100 million yen)

225

212

208
1521121047062©2023 TOKAI Holdings Corporation. All Rights Reserved.

-104-121-69-75-97-141

FYE 2021.3
Op. CF

-141-146-171
FYE 2020.3

301-188
FYE 2022.3
Inv. CF

Fin. CFFYE 2023.3

FYE 2024.3

Fr. CF14

Balance Sheet Total assets increased to 205.3 billion yen (up 12 billion yen from the previous period) due to theexpansion of our customer base and the acquisition of shares in REDC, a company that operates ahydropower business overseas, which led to an increase in fixed assets.
 The equity ratio improved by 1.9 percentage points from the end of the previous period to 43.4%,
maintaining a sound financial position.

FYE 2023.3

FYE 2024.3

Total Assets

Total Assets

193.3 billion yen

205.3 billion yen(billion yen)(billion yen)

Current Assets
Current Assets

51.8

Current
Liabilities

54.7©2023 TOKAI Holdings Corporation. All Rights Reserved.

61.0

52.2

50.0
141.5
(Investment Securities
98)

61.8
Fixed Liabilities

Fixed Liabilities
Fixed Assets

Current
Liabilities

Fixed AssetsNet Assets

82.3

150.6
(Investment Securities148)

Net Assets

91.3

Equity Ratio

Equity Ratio

41.5%

43.4%
15

Full-Year Financial Results
Forecast for FY03/25©2023 TOKAI Holdings Corporation. All Rights Reserved.

16

Consolidated full-year financial results forecast for FY03/25
 The fiscal year ending in March 2025 is the second year of our "Medium-Term Management Plan 2025".
We will steadfastly carry out each initiative in accordance with the growth tree, which consists of thethree elements: "source of growth, core, and fruit" that we have set out in this plan, aiming for further
significant advancements.
 We will continue to push for area expansion, M&A, and the creation of new businesses, with the aimof not only continuing to increase revenue and profit in fiscal 2024, but also setting new records insales and all profit items.
(Millions of yen)
FY03/24 forecast(April 1, 2024 toMarch 31, 2025)

FY03/24 results(April 1, 2023 toMarch 31, 2024)

YoY
Change% change

244,000

231,513+12,487+5.4％

Operating profit

16,00015,511+489+3.2％

Ordinary profit

16,00015,531+469+3.0％

Profit attributable toowners of parent

9,0008,481+519+6.1％

EPS (yen)

68.90

64.94

+3.96

+6.1％

Customer count at end offiscal year (Thousand)

3,452

3,358+94+2.8％

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

17

Revision of Dividend Forecast Due to the steady performance, the year-end dividend for this period has been increased by 1 yenfrom the initial forecast of 16 yen to 17 yen, and the annual dividend is planned to be 33 yen per share.
 The annual dividend for the fiscal year 2024 is planned to be increased from the previous 32 yen (33yen in 2023 with a 1 yen increase) to 34 yen.
 The dividend payout ratio continues to be maintained at a high level.
Interim Dividend

Year-End Dividend

Commemorative Dividend

64.8%

60
50

46.7%

47.2%

43.4%

44.5%

44.6%

40
©2023 TOKAI Holdings Corporation. All Rights Reserved.

35.1%

30

28

28

28

28

yen/shareyen/shareyen/shareyen/share30
yen/share

6100

12

12

yen/shareyen/share

66

14

14
yen/share

1414

16

66

FY2013

FY2014FY2015

49.3%

46.7%

32yen/share

1711FY2016

60.0%
50.0%

34 40.0%33
yen/share yen/shareyen/share
30.0%
32

16171720.0%
10.0%

110.0%

8670.0%

50.8%

54.7%

52.9%

20

Dividend Payout Ratio

1414141415161617

FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024（Forecast）-10.0%-20.0%

18

Progress of Medium-term Management Plan 2025
 The Mid-Term Management Plan 2025 is progressing smoothly.
 We will continue to increase revenue and profits by expanding our customer base mainly in our corebusinesses and maintain a level of capital efficiency that meets market expectations.

Operating profit(100 million yen)

175

ResultForecast
Mid-term Management
Plan 2025

160 160©2023 TOKAI Holdings Corporation. All Rights Reserved.

155
149

FY2022150

FY2023

FY2024FY202519

The performance forecasts and forward-looking statements in these materials are
based on information currently available to the company, and include potential risks anduncertainties. Please be aware that due to changes in a variety of factors, actual results
may differ materially from the projections and other forward-looking statements in thesematerials.

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 Tokiwacho, Aoi Ward, Shizuoka City, Shizuoka Prefecture
Phone: +81- (0)54-273-4878
https://www.tokaiholdings.co.jp/english/
e-mail： overseas_IR@tokaigroup.co.jp

20