TOKAI : Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2024 – Medium-Term Management Plan 2025 Gets Underway – (200KB)

August 3, 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 Three Months of the Fiscal Year Ending March 31,

2024

- Medium-Term Management Plan 2025 Gets Underway -

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

1. Q1 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 three months of the fiscal year under review, net sales stood at 54.0 billion yen, up 2.2 billion yen

or 4.2% 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 2.5 billion yen, down 0.9 billion yen or 26.0% year on year. This is explained mainly by a decrease in gas sales volume for households due to high air temperatures, by an increase in expenses for acquiring LP gas customers following efforts to win customers at a higher pace than in the same period a year earlier and by pay increases that resulted in a rise in personnel expenses. These factors more than offset earnings growth after an increase in the number of monthly fee-paying customers accompanying an increase in the number of customer accounts.

					(Millions of yen)
	Q1 FY03/24	Q1 FY03/23	YoY
	results	results
	Change		% change
	(April 1, 2023 to June 30, 2023)	(April 1, 2022 to June 30, 2022)
Net sales	53,971	51,803	+2,167		+4.2％
Operating profit	2,484	3,355	- 871		- 26.0％
Ordinary profit	2,617	3,389	- 771		- 22.8％
Profit attributable to	1,338	1,795	- 456		- 25.4％
owners of parent
EPS (yen)	10.25	13.72	- 3.47		- 25.3％

2. Steady expansion of customer base in core businesses

As of the end of the first quarter under review, the number of continuing customers reached 3,312 thousand,

up 12,584 from the count of 3,299 thousand at the beginning of the fiscal year, and up 19,227 year on year.

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

The Company made continued progress in expanding its earnings base, with net increase of 9,528 (LP and city) gas customers (6,635 in the same period of the previous fiscal year), 5,896 CATV customers (8,161), 1,331 Hikari Collaboration customers (4,552) and 778 Aqua customers (1,211).

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 March 31,	(April 1, 2022 to March 31,
				Change		% change
	2024)		2023)
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
	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	32.00 yen		32.00 yen		32.00 yen
share

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

31, 2024."

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

following URL:

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

Financial Results for the First Quarter of the

Fiscal Year Ending March 31, 2024

TOKAI Holdings Corporation

(Code: 3167)

August 3, 2023

Q1 net sales grow for the third consecutive

year to set new record high

• Q1 net sales achieved year-on-year growth for the third consecutive fiscal year and set 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.
• Q1 operating profit was down 0.9 billion yen year on year, due mainly to a decrease in gas sales volume for households associated with high air temperatures and other factors, an increase in expenses for acquiring LP gas customers and pay increases that resulted in a rise in personnel expenses. These factors offset earnings growth posted after an increase in the number of monthly

fee-paying customers accompanying an increase in the number of customer accounts.

					(Millions of yen)
	Q3 FY03/23	Q3 FY03/22	YoY
	results	results
	(April 1, 2023 -	(April 1, 2022 -	Change		% change
	June 30, 2023)	June 30, 2022)
Net sales	53,971	51,803	+2,167		+4.2%
Operating profit	2,484	3,355	-871		-26.0%
Ordinary profit	2,617	3,389	-771		-22.8%
Profit attributable to	1,338	1,795	-456		-25.4%
owners of parent
EPS (yen)	10.25	13.72	-3.47		-25.3%

1

(Millions of yen)

Steady Expansion of Customer Base in

Core Businesses

• The number of continuing customers as of June 30, 2023 stood at 3,312 thousand, an increase of 13 thousand from 3,299 thousand at the beginning of the fiscal year.
• We further expanded our earnings base in the gas business, CATV business, Hikari Collaboration and Aqua business.

3,320

Customer count

3,315 (Thousand)

- 1

3,310

3,305

3,300

3,295

3,290

3,299

Gas

	LP gas	+9
	City gas
	+1

	- 1		+6
	Information and			CATV
	Communications			Broadcasting	+1
	ISP, etc.	- 3		Communications	+5
Hikari Collaboration	+1
	LIBMO	+1

Others

Aqua+1

Mobile - 2

Others +0

3,312

3,285

3,280

Net increase of 13,000

FY2022	FY2023
	分類 7
Results	1Q Result
* Rounded to the nearest thousand. Adjustment is made in Others for duplicate communication services for ISP and CATV carrier plans.	2

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 jump hugely, after reduction

of burdens of impairment losses that occurred in the previous fiscal year.

	FY03/24 forecast	FY03/23 results	YoY
	(April 1, 2023 -	(April 1, 2022 -
	Change		% change
	March 31, 2024)	March 31, 2023)
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	3,384,000	3,299,000	+84,000		+2.6%
end of fiscal year

3