ＴＯＫＡＩホールディングス（3167） – [Delayed]Financial Results for the Fiscal Year Ended March 31, 2022

To whom it may concern May 10, 2022 Company Name: TOKAI Holdings Corporation Representative Name: Katsuhiko Tokita, President & CEO (Code No. 3167, TSE Prime Market) Contact: Yoshihiro Taniguchi, Public Relations and Investor Relations Office TEL: +81-(0)3-5404-2891 Financial Results for the Fiscal Year Ended March 31, 2022 Achieved sales growth for the fifth consecutive fiscal year, a new record high operating profit for the fourth consecutive fiscal year, dividend growth for the second consecutive fiscal year and an expanded customer base TOKAI Holdings Corporation (hereinafter, “the Company”) today announced its financial results for the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022 ). 1. Customer count increased by 95 thousand during the year to expand earnings base The Company announced the fourth Medium-Term Management Plan, Innovation Plan 2024 “Design the Future Life” (“IP24”*1) in May last year. The plan covers a period from this fiscal year to the fiscal year ending March 31, 2025. A key strategy in IP24 is “LNG strategy.” The Company will expand its business areas at the Local level (expansion of share in existing areas), at the National level (expansion of new business areas in Japan), and at the Global level (business development overseas) and will achieve growth in the number of customers through selection and concentration, focusing on profitability. To achieve 3.56 million customers at the end of the fiscal year ending March 31, 2025, the Company will pursue an aggressive strategy to expand its earnings base. As a result of operating activities to attract new customers for the fiscal year under review while taking full measures to prevent COVID-19 infections, the Company recorded 3,194 thousand continuing customers as of March 31, 2022. This reflects an increase by 94,937 such customers from 3,099 thousand at the beginning of the fiscal year, including M&A-related 8,253. With net increases of 40,408 (LP and city) gas customers (31,206 in the previous fiscal year), 33,840 CATV customers (43,520, including M&A-related 8,253 customers in the previous fiscal year), and 2,836 Aqua (bottled drinking water delivery) customers (1,385 in the previous year), we further expanded our earnings base. 2. Sales and profit rose to new record highs, far beyond the forecast levels For the fiscal year under review, net sales reached 210.7 billion yen, up 14.0 billion yen, or 7.1% year on year, to exceed the 200 billion yen mark for the first time, an increase for the fifth consecutive fiscal year and a new record high for the fourth consecutive fiscal year. This resulted chiefly from growth in energy, CATV and other sales after increases in the number of customers for each, rises in selling prices linked with energy purchase prices, the expansion of the stock business for corporate clients in the Information and Communication business and the effect of M&A in in the Construction, Equipment, and Real Estate business. There was, however, a decline in net sales due to application of the Accounting Standard for Revenue Recognition. On the profit front, operating profit was 15.8 billion yen, up 0.6 billion yen or 3.7% year on year, to set a new record high for the fourth consecutive fiscal year. A rise in expenses for attracting LP gas and Aqua customers following activities to do so at a higher pace than in the previous fiscal year was offset mainly by profit growth after an increase in the number of monthly fee-paying customers that accompanied a higher customer count and a profit hike in the Information and Communication business for corporate clients. Net sales and all the profit and income figures ended higher than their respective forecast levels at the start of the fiscal year. FY03/22 results (April 1, 2021 to March 31, 2022) FY03/21 results (April 1, 2020 to March 31, 2021) Forecast (Announced on May 11, 2021) YoY (Millions of yen) Change from forecast N e t s a l e s 210,691 196,726 207,000 +13,964 +3,691 Operating profit Recurring profit N e t i n c o m e E P S ( y e n ) 15,794 15,907 8,969 68.49 15,226 15,312 8,815 67.32 15,240 15,320 8,830 67.42 +567 +595 +154 +1.17 +554 +587 +139 +1.07 3. Dividends increased for the second consecutive fiscal year to expand shareholder returns The Company defines the return of profit to shareholders as one of the key management issues and has a basic policy of paying stable and constant dividends. The financial results for the fiscal year under review saw sales rise for the fifth consecutive fiscal year, record highs at all levels of profit for the fourth consecutive fiscal year and higher figures than initially forecast. As announced earlier today, we will increase the year-end dividend per share by 2 yen from the initially forecast level of 15 yen, to 17 yen. That means total annual dividends of 32 yen per share, representing dividend growth for the second consecutive fiscal year. FY03/22 FY03/21 FY03/20 (Current fiscal year) (Previous fiscal year) (Two years earlier) I n t e r i m ( e n d o f Q 2 ) Y ear-end Annual dividend per share Consolidated payout ratio C o n s o l i d a t e d D O E 15.00 yen 17.00 yen 32.00 yen 46.7％ 5.5％ 14.00 yen 16.00 yen 30.00 yen 44.6％ 5.6％ Total dividend amount 4,203 million yen 3,940 million yen 3,678 million yen 14.00 yen 14.00 yen 28.00 yen 44.5％ 5.8％ For details, please see the attached materials, entitled “Financial Results for the Fiscal Year Ended March 31, 2022.” For the Company’s earnings announcement for the fiscal year ended March 31, 2022, please see the following URL: https://www.tokaiholdings.co.jp/english/ir/library/earnings.html *1 For the details of the fourth Medium-Term Management Plan “IP24,” please see the following URL: https://www.tokaiholdings.co.jp/english/ir/management/manageplan.html Financial Results for the Fiscal Year Ended March 31, 2022TOKAI Holdings Corporation(Code No. 3167)May 10, 2022Steady expansion of customer base in core businesses◎ The number of continuing customers as of the end of the fiscal year under review stood at 3,194 thousand, an increase of 9 thousand from 3,099 thousand at the beginning of the fiscal year.◎ We further expanded our earnings base in the gas business, the main business, CATV business and Aqua business.Gas (LP and city)(Thousand)+40 +31 785+24 CATV+44 +32 +34 1,231 Aqua+5 +3 165+1 7447131,198 1,154 161162FY2019(two years earlier)FY2020(one year earlier)FY2021(under review)FY2019(two years earlier)FY2020(one year earlier)FY2021(under review)FY2019(two years earlier)FY2020(one year earlier)FY2021(under review)Number at end of fiscal yearNet increaseNumber at end of fiscal yearNet increaseNumber at end of fiscal yearNet increase* Rounded to the nearest thousand* Net increases exclude customers added through M&A.* The net increase in CATV customers for FY2020 (one year earlier) includes 8 thousand resulting from an arrangement through M&A.61,30041,250201,200-21,150-4-61,100-81,050-10850830408103079020770750107300710-10690-20670650-304540353025201510501701681661641621601581561Massive growth in monthly fee-paying customers in core businesses◎ Increasing customers constituting our earnings base leads to a sales rise based on growth of monthly fee-paying customers.Number of monthly fee-paying customers(Thousand)3,476 3,400 470 thousand(up 15.5%)3,327 3,251 3,180 3,126 3,063 3,010 5,881 5,809 5,725 5,644 730 thousand (up 14.1%)2,050 2,024 2,007 5,344 5,269 5,210 5,156 90 thousand (up 4.8%)1,957 1,956 1,955 1,963 1,944 1H2H1H2H1H2H1H2H1H2H1H2H1H2H1H2H1H2H1H2H1H2H1H2HFY2018FY2019FY2020FY2021FY2018FY2019FY2020FY2021FY2018FY2019FY2020FY2021LP Gas BusinessCATV BusinessHikari Collaboration2Sales and all profit and income figures renewed record high◎ Net sales renewed record high for the fourth consecutive fiscal year and exceeded the 200 billion yen mark. This resulted chiefly from an increase in customers, rises in selling prices linked with energy purchase prices, expansion of the Information and Communication business for corporate clients and the effect of M&A in the Construction, Equipment, and Real Estate business despite a downward impact from the application of the Accounting Standard for Revenue Recognition.◎ Profit and income figures set new record highs for the fourth consecutive fiscal year. A rise in expenses for attracting customers was covered by profit growth after an increase in the number of monthly fee-paying customers that accompanied a higher customer count and a profit hike in the Information and Communication business for corporate clients.◎ Net sales and all the profit and income figures ended higher than their respective forecasted levels.FY03/22 results(FY2021)FY03/21 results(FY2020)Forecast(Net sales and profit: million yen; EPS: yen)YoYChange from forecastChangeChange% change(%)% change(%)Net sales210,691196,726207,000+13,964+7.1+3,691Operating profit15,79415,22615,240+567Recurring profit15,90715,31215,320+595Net income8,9698,8158,830+154EPS68.4967.3267.42+1.17+3.7+3.9+1.7+1.7+554+587+139+1.07+1.8+3.6+3.8+1.6+1.63Year-on-year comparison in full-year operating profit by segment◎ Energy, CATV and Aqua profits surged following increases in customers. Information and Communication for corporate clients was also strong.◎ Energy, CATV and Aqua gained customers at a higher pace than in the previous fiscal year by spending money.◎ Expenses for developing an environment for workstyle reforms were recorded as part of adjustments.Operating profit(billion yen)-0.06+0.38+0.653.10million customers15.22+0.41-0.25-0.573.19million customers15.79EnergyIncrease in customersAcquisition costs+1.21-1.17Other costs-0.42Temperature and othersPurchase costs-0.46+0.78Information and CommunicationsFor corporate clients+0.37LIBMO+0.17For individual clients-0.02Other costs-0.14CATVIncrease in customers+0.65Construction, Equipment, and Real EstateRenovation -0.05Building facilities+0.46AquaIncrease in customersAcquisition costs+0.12-0.37Others and adjustmentsWedding ceremonies and others+0.14Adjustments -0.71160.0150.0140.0130.0120.0110.0FY2020分類 1Results* Changes in operating profit disregard allocation of indirect costs.エネルギー情報通信CATV建築不動産アクアその他調整額FY2021分類 7Results4Investing for growth after strengthening equity capital◎ The equity ratio continued to rise by 0.3 percentage points.◎ The decline in cash flows from operating activities resulted from changes in working capital and others. The cash creation potential was not changed.◎ The ratio of interest-bearing liabilities to EBITDA remained unchanged from the previous year’s level.Equity ratioInterest bearing liabilitiesCash flows from operating activitiesEBITDACash flows from investing activitiesFree cash flowsInterest-bearing debt/EBITDA41.6 %➡ 41.9 %End of March 2021End of March 2022FY03/21FY03/22End of March 2021End of March 202242.1 billion yen ➡ 44.1 billion yen32.2 billion yen ➡ 20.8 billion yen31.0 billion yen ➡ 31.7 billion yen-17.1 billion yen ➡ -14.6 billion yen15.2 billion yen ➡ 6.2 billion yen1.4➡ 1.4FY03/22FY03/22FY03/22FY03/21FY03/21FY03/21FY03/21FY03/225Dividends increased for the second consecutive fiscal year to expand shareholder returns◎ Given that profits renewed record high for the fourth consecutive fiscal year to exceed forecasts, the year-end dividend per share will be increased by 2 yen from the initially forecasted level of 15 yen to 17 yen. Accordingly, total annual dividends will be 32 yen per share.◎ The payout ratio will remain high.44.2%52.9%40.2%54.7%46.7%43.4%47.2%44.5%44.6%46.7%35.1%28 yen/share 28 yen/share 28 yen/share28 yen/share32 yen/share30 yen/share12 yen/share 12 yen/share 12 yen/share12 yen/share14 yen/share66666666866111114141416171414141415FY2011FY2012FY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021Interim dividendYear-end dividendCommemorative dividendPayout ratio605040302010050.0%40.0%30.0%20.0%10.0%0.0%6Appendix(1) Consolidated results(2) Sales by segment(3) Operating profit by segment(4) Consolidated financial indicators(5) Consolidated cash flows(6) Group customer count(7) EBTDA by business(1) Consolidated resultsFY2017ResultsFY02018ResultsFY2019ResultsFY2020ResultsFY2021Results(Millions of yen)Sales186,069 191,600 195,952 196,726 210,691Operating profit10,97113,05714,22415,22615,794Recurring profit11,19113,25914,47915,31215,907Net income6,6207,7728,2418,8158,969EPS (Yen)51.1959.3662.9367.3268.499(2) Sales by segmentFY2017ResultsFY02018ResultsFY2019ResultsFY2020ResultsFY2021Results(Millions of yen)Gas and PetroleumInformation and Communications76,07377,97778,15477,38086,77050,89451,23451,75350,73551,398CATV28,38630,51131,38533,74532,572Building and Real Estate19,80720,09022,38323,17727,780AquaOthers6,2007,0047,4167,6227,6294,7064,7814,8584,0654,540Total186,069 191,600 195,952 196,726 210,691(3) Operating profit by segment(Millions of yen)FY2017ResultsFY02018ResultsFY2019ResultsFY2020ResultsFY2021Results7,3646,8157,4528,9888,9333,1743,8274,2264,3444,721Gas and PetroleumInformation and CommunicationsBuilding and Real EstateAquaOthers, adjustmentsCATV3,5544,9535,0245,2055,8521,3301,6152,1162,0652,480246762674573325- 4,699- 4,916- 5,271- 5,949- 6,518Total10,97113,05714,22415,22615,794*Prior to elimination of indirect expenses1011(4) Consolidated financial indicatorsFY2017ResultsFY02018ResultsFY2019ResultsFY2020ResultsFY2021Results(Millions of yen)Total assets165,993 167,606 169,972 178,974184,473Total liabilities104,543103,711 103,989 102,917105,527Total net assets61,45063,89465,98276,05678,946Balance of interest-bearing debt50,98050,60448,27342,12844,148EBITDA26,31828,14829,65131,02731,726Equity ratio36.3 %37.4 %38.0 %41.6 %41.9 %(5) Consolidated cash flowsFY2017ResultsFY02018ResultsFY2019ResultsFY2020ResultsFY2021Results(Millions of yen)20,90921,60522,53532,22320,808- 11,488 – 12,443 – 12,131 – 17,068 – 14,592Operating cash flowInvestment cash flowFree cash flow9,4219,16110,40315,1556,216Financing cash flow- 9,527- 8,147 – 10,375 -14,064- 6,9051213(6) Group customer countFY2017ResultsFY02018ResultsFY2019ResultsFY2020ResultsFY2021Results(Thousands of customers)Gas (LP and city gas) dna noitamrofnIisnoitacnummoCPrevious ISP model, etc.Hikari CollaborationLIBMOSubtotalCATVAquaMobileSecurity68441932741156217177133893244897316121216744395337537851622061678541534655816165191161,0441,0321,0041,0631,1541,1981,2316614653232914622717Total2,8762,9023,0033,0993,194*The number of customers under a thousand are rounded to the nearest thousand. Information and Communications and CATV both offer communications services, and so their numbers are excluded from total figures.14（７） EBITDA by businessFY2017ResultsFY02018ResultsFY2019ResultsFY2020ResultsFY2021Results12,07011,60112,27913,65113,760(Millions of yen)5,9336,8147,4601,3051,3566,5006,7559,79810,70510,73211,14111,5652,0772,3522,8832,8963,501EnergyInformation and CommunicationsCATVForindividualForcorporateConstruction, Equipmentand Real EstateAqua7921,3051,2841,2131,018EBITDA （All）26,31828,14829,65131,02731,726* EBITDA = operating profit + depreciation (operating profit is before allocation of indirect costs, etc.)* Information and communication has been divided into those for individuals and those for corporations from the previous term. Before that, the numerical value of the entire information and communication is displayed.15The 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.Please contact us with any questions regarding these materials.Investor Relations OfficeTOKAI Holdings CorporationHamarikyu Inter City 11th floor, 1-9-1, Kaigan, Minato-ku, Tokyo 105-0022, JapanPhone: +81-(0)3 5404-2891Fax: +81-(0)3-5404-2786https://www.tokaiholdings.co.jp/english/e-mail： overseas_IR@tokaigroup.co.jp