November 2, 2023

For Immediate Release

TOKAI Holdings Corporation

Katsuo Oguri, Representative Director, President and CEO

(Code No. 3167, TSE Prime Market)

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

  • Net sales for the first six months grew for the third consecutive fiscal year to reach a new record high -

TOKAI Holdings Corporation (hereinafter, "the Company") today announced its financial results for the first six months of the fiscal year ending March 31, 2024.

1. H1 net sales grow for the third consecutive year to set new record high

The Company announced the Medium-Term Management Plan 2025 in May. The plan covers the period up to the fiscal year ending March 31, 2025. During the three-year period until FY2025, the Group will execute initiatives in line with a growth story consisting of three elements, namely the root, the trunk and the fruit of growth. In doing so, it will seek to create a sustainable society and achieve continuous growth.

For the first six months of the fiscal year under review, net sales stood at 105.2 billion yen, up 1.1 billion yen or

1.1% year on year, to hit new high for the third consecutive year. This resulted mainly from sales growth following an increase in energy, CATV and other customers and from the expansion of the stock business for corporate clients in the Information and Communication business.

Operating profit was 4.3 billion yen, remaining flat year on year. This is explained mainly by a decrease in gas sales volume for households due to high air temperatures, which was offset by a profit hike following growth in the number of monthly fee-paying customers accompanying an increase in the number of customer accounts.

Profit attributable to owners of parent surged 2.1 billion yen or 1,403.4%, to 2.2 billion yen, due mainly to the easing of the burdens arising from the share of profit of entities accounted for using the equity method that occurred in the previous fiscal year.

(Millions of yen)

H1 FY03/24 results

H1 FY03/23

YoY

results

(April 1, 2023 to

September 30, 2023)

(April 1, 2022 to

Change

% change

September 30, 2022)

Net sales

105,226

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 to owners

2,219

147

+2,072

+1,403.4％

of parent

EPS (yen)

17.00 yen

1.13 yen

+15.87 yen

+1,406.6％

2. Steady expansion of customer base in core businesses

As of the end of the second quarter under review, the number of continuing customers reached 3,328 thousand,

up 28,154 from the count of 3,299 thousand at the beginning of the fiscal year, and up 48,618 year on year.

This resulted from active efforts to win customers with the aim of achieving the Medium-Term Management Plan.

With net increase of 16,246 (LP and city) gas customers (19,094 in the same period of the previous fiscal year), 13,137 CATV customers (15,910), 4,420 Hikari Collaboration customers (11,849) and 4,263 LIMBO customers (6,852), we further expanded our earnings base.

3. Medium-Term Management Plan 2025 was kicked off

Today, circumstances surrounding business entities and customers' values are changing rapidly, including shifts in society following the COVID-19 pandemic, mounting awareness of sustainability and turbulent global economic changes. Amid these changes, the Company understood that needs for addressing medium- and long-term issues for the continuous growth of society were emerging and so developed and adopted Medium-Term Management Plan 2025, in which the fiscal year ending March 31, 2026 was determined as the final fiscal year.

The TOKAI Group will work to live up to the expectations of its stakeholders as a company which steadily generates earnings despite the changing market environment.

For the fiscal year ending March 31, 2024, the Group will carry out initiatives in line with a growth story consisting of three elements, namely the root, the trunk and the fruit of growth, and will aim to achieve income and profit growth in full-year financial results.

The earnings and dividend forecasts for the fiscal year ending March 31, 2024 remain unchanged.

(Millions of yen)

FY03/24 forecast

FY03/23 results

YoY

(April 1, 2023 to

(April 1, 2022 to

March 31, 2024)

March 31, 2023)

Change

% change

Net sales

240,000

230,190

+9,810

+4.3％

Operating profit

15,000

14,919

+81

+0.5％

Ordinary profit

15,000

13,289

+1,711

+12.9％

Profit attributable to

8,500

6,465

+2,035

+31.5％

owners of parent

EPS (yen)

65.10

49.41

+15.69

+31.8％

Customer count at end of

3,384,000

3,299,000

+84,000

+2.6％

fiscal year

FY03/24

FY03/23

FY03/22

(forecast)

Interim (end of Q2)

16.00 yen

16.00 yen

15.00 yen

Year-end

16.00 yen

16.00 yen

17.00 yen

Annual dividend per share

32.00 yen

32.00 yen

32.00 yen

For details, please see the attached materials, entitled "Financial Results for the First Six Months of the Fiscal Year Ending March 31,

2024."

For the Company's earnings announcement for the first six months of the fiscal year ending March 31, 2024, please see the following

URL: https://www.tokaiholdings.co.jp/english/ir/library/earnings.html

https://www.tokaiholdings.co.jp/ir/library/earnings.html

©2023 TOKAI Holdings Corporation. All Rights Reserved.

Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2024

TOKAI Holdings Corporation (Code: 3167)

November 2, 2023

1

©2023 TOKAI Holdings Corporation. All Rights Reserved.

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 and Communications 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 for households attributable to high air temperatures, which was offset by a profit hike after growth in the number of monthly fee- paying 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 arising from the share of profit of entities accounted for using the equity method that arose in the previous fiscal year.

H1 FY03/23 results

YoY

H1 FY03/24 results

% change

(FY2022_2Q)

Change

(%)

Net sales

105,226

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 to

2,219

147

+2,072

+1,403.4

owners of parent

EPS (yen)

17.00

1.13

+15.87

+1,406.6

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

2

Steady 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.

©2023 TOKAI Holdings Corporation. All Rights Reserved.

3,299

FY2022

Result

-3

+13

+2

Others

Aqua

+1

CATV

Mobile

-5

+16

Information and

Others

+1

Broadcasting

+2

Communications

Communications

+11

Hikari

+4

Collaboration

LIBMO

+4

Gas

ISP, etc.

-7

LP gas

+16

City gas

+0

Customer count

(Thousand)

  • Rounded to the nearest thousand. Adjustment is made in Others for duplicate communication services for ISP and CATV carrier plans.

3,328

FY2023

H1 Result

3

©2023 TOKAI Holdings Corporation. All Rights Reserved.

Changes 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 air temperatures.
  • Profit grew in the Information and Communications business, chiefly as a result of cutting expenses for gaining customers in the Information and Communication business for consumers.
  • The CATV and Aqua businesses increased profits mainly following a rise in customers.

Aqua

Information and

CATV

+1.3

Communications

+0.8

-0.1

-2.5

Building facilities

42.5

Others

42.5

-4.6

Real estate

+5.1

Energy

Operating profit

(100 million yen)

FY2022

FY2023

H1 Result

H1 Result

* Changes in operating profit disregard allocation of indirect costs

4

©2023 TOKAI Holdings Corporation. All Rights Reserved.

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 to earnings increase following expansion of areas served.
  • Operating profit is forecasted to remain unchanged year on year, chiefly reflecting expenses for acquiring customers and personnel revitalization.
  • Ordinary profit and profit attributable to owners of parent are expected to surge, after the easing of the burdens arising from the share of profit of entities accounted for using the equity method that arose in the previous fiscal year.

(Millions of yen)

FY03/24 forecast

FY03/23 results

YoY

(April 1, 2023 to

(April 1, 2022 to

March 31, 2024)

March 31, 2023)

Change

% change

Net sales

240,000

230,190

+9,810

+4.3%

Operating profit

15,000

14,919

+81

+0.5%

Ordinary profit

15,000

13,289

+1,711

+12.9%

Profit attributable to

8,500

6,465

+2,035

+31.5%

owners of parent

EPS (yen)

65.10

49.41

+15.69

+31.8%

Customer count at end

3,384,000

3,299,000

+84,000

+2.6%

of fiscal year

5

©2023 TOKAI Holdings Corporation. All Rights Reserved.

Dividend 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.

60

Interim dividend

Year-end dividend

Commemorative dividend

Payout ratio

70.0%

64.8%

50

52.9%

54.7%

60.0%

49.2%

46.7%

47.2%

46.7%

44.5%

44.6%

50.0%

40

43.4%

32

30

32

32

28

28

28

28

yen/share

yen/share

yen/share 40.0%

30

yen/share

yen/share

yen/share

yen/share

yen/share

30.0%

35.1%

6

17

16

16

14

14

14

16

20

14

20.0%

12

12

11

yen/share

10

yen/share

yen/share

8

6

6

15

16

16

10.0%

14

14

14

14

11

6

6

6

0

0.0%

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

FY2019

FY2020

FY2021

FY2022

FY2023

(forecast)

6

Appendix

(1) Consolidated results

(2) Sales by segment

(3) Operating profit by segment

(4) Consolidated financial indicators

(5) Consolidated cash flows

(6) Group customer count

©2023 TOKAI Holdings Corporation. All Rights Reserved.

7

©2023 TOKAI Holdings Corporation. All Rights Reserved.

（ １ ） C o n s o l i d a t e d r e s u l t s

(Millions of yen)

1H FY03/20

1H FY03/21

1H FY03/22

1H FY03/23

1H FY03/24

Results

Results

Results

Results

Results

S a l e s

93,015

89,836

96,060

104,110

105,226

O p e r a t i n g

5,500

5,452

5,223

4,253

4,254

p r o f i t

R e c u r r i n g

5,608

5,499

5,284

2,432

4,355

p r o f i t

N e t i n c o m e

3,492

3,279

2,281

147

2,219

E P S ( Y e n )

26.67

25.04

17.42

1.13

17.00

8

©2023 TOKAI Holdings Corporation. All Rights Reserved.

（ ２ ） S a l e s b y s e g m e n t

(Millions of yen)

1H FY03/20

1H FY03/21

1H FY03/22

1H FY03/23

1H FY03/24

Results

Results

Results

Results

Results

Energy

35,766

33,430

36,153

44,053

42,952

Information and

25,911

25,131

25,302

26,078

27,457

Communications

For individuals

12,100

For corporations

15,356

ＣＡＴＶ

15,593

16,490

16,081

16,574

17,732

Construction,

Equipment and Real

9,736

9,074

12,361

11,486

10,943

Estate

Aqua

3,752

3,880

3,913

3,838

3,883

Others

2,255

1,828

2,248

2,077

2,257

Total

93,015

89,836

96,060

104,110

105,226

※Prior to elimination of indirect expenses

※For information and communications, starting from the second quarter of 2023, figures for individuals and corporations are also displayed.

9

©2023 TOKAI Holdings Corporation. All Rights Reserved.

（ ３ ） O p e r a t i n g p r of i t b y s e g m e n t

(Millions of yen)

1H FY03/20

1H FY03/21

1H FY03/22

1H FY03/23

1H FY03/24

Results

Results

Results

Results

Results

Energy

1,966

2,382

1,963

1,330

869

Information and

2,269

2,036

2,405

2,320

2,828

Communications

For individuals

512

For corporations

2,316

ＣＡＴＶ

2,539

2,633

2,957

3,052

3,135

Construction,

Equipment and Real

843

621

738

589

578

Estate

Aqua

400

446

186

234

364

Others

-2,519

-2,667

-3,027

-3,274

-3,520

Total

5,500

5,452

5,223

4,253

4,254

※For information and communications, starting from the second quarter of 2023, figures for individuals and corporations are also displayed.

10

©2023 TOKAI Holdings Corporation. All Rights Reserved.

（ ４ ） C o n s o l i d a t e d f i n a n c i a l i n d i c a t o r s

(Millions of yen)

1H FY03/20

1H FY03/21

1H FY03/22

1H FY03/23

1H FY03/24

Results

Results

Results

Results

Results

T o t a l a s s e t s

165,616

167,687

177,855

180,807

190,820

T o t a l

100,633

98,288

100,713

102,948

106,020

l i a b i l i t i e s

T o t a l n e t

64,982

69,398

77,142

77,859

84,800

a s s e t s

B a l a n c e o f

i n t e r e s t -

50,927

48,259

45,212

47,109

48,267

b e a r i n g d e b t

E q u i t y r a t i o

38.4 %

40.5 %

42.5 %

42.1 %

43.3 %

11

©2023 TOKAI Holdings Corporation. All Rights Reserved.

（ ５ ） C o n s o l i d a t e d c a s h f l o w s

(Millions of yen)

1H FY03/20

1H FY03/21

1H FY03/22

1H FY03/23

1H FY03/24

Results

Results

Results

Results

Results

Operating cash flow

10,706

14,805

11,382

7,956

13,765

Investment cash flow

- 6,859

- 10,696

- 8,997

- 6,861

- 9,704

Free cash flow

3,846

4,109

2,384

1,095

4,060

Financing cash flow

- 3,659

- 4,048

- 1,680

- 1,709

- 3,018

12

©2023 TOKAI Holdings Corporation. All Rights Reserved.

（ ６ ） G r o u p c u s t o m e r c o u n t

(Thousand)

1H FY03/20

1H FY03/21

1H FY03/22

1H FY03/23

1H FY03/24

Results

Results

Results

Results

Results

Energy

696

728

764

804

837

Informationand Communications

Conventional ISP

403

379

386

414

400

etc.

Hikari

324

332

339

358

368

Collaboration

LIBMO

43

51

54

62

75

Subtotal

770

762

779

834

843

CATV

1,076

1,179

1,214

1,247

1,300

Aqua

159

161

165

167

166

Mobile

215

209

198

185

174

Security

16

16

16

16

16

合計

2,918

3,042

3,125

3,242

3,328

*Rounded to the nearest thousand. Communication services overlap between information and communication services and CATV, and are excluded

from the total value.

*Information and communications (conventional ISP, etc.) includes ISP additional service (PC visit support service) contracts from 2Q 2021, and

contracts for the same (PC remote support service) from 2Q 2022.

13

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 the projections and other forward-looking statements in these materials.

©2023 TOKAI Holdings Corporation. All Rights Reserved.

Please contact us with any questions regarding these materials.

Public / Investor Relations Office TOKAI Holdings Corporation

2-6-8 Tokiwacho, Aoi Ward, Shizuoka City, Shizuoka Prefecture Phone: +81- (0)54-273-4878 http://tokaiholdings.co.jp/english/

e-mail： overseas_IR@tokaigroup.co.jp

14

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Tokai Holdings Corporation published this content on 17 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2023 08:17:05 UTC.