Tokai Holdings Corporation TSE:3167

TOKAI : Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2025 – Net sales grew for the 4th consecutive fiscal year to reach a new record high

Published November 12, 2024 at 12:25 a.m. UTC

Source: MarketScreener

November 1, 2024

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, 2025

- Net sales grew for the 4th 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, 2025.

1. H1 net sales grow for the 4th consecutive year to set new record high

The Company announced the Medium-Term Management Plan 2025 in May of last year. 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.

Regarding the business performance for the interim period under review, sales increased due to an increase in the number of group customers, the expansion of the corporate stock business in the information and communications business, and steady orders for building equipment and real estate. As a result, sales reached a record high of 111.1

billion yen (up 5.6%, or 5.9 billion yen, from the same period last year), marking the fourth consecutive

period of sales increase.

In terms of profits, while there was an increase in personnel expenses due to wage increases implemented following the previous year, there was a steady increase in the number of monthly billings accompanying an increase in the number of customers, as well as increased profits from building equipment real estate, resulting in operating profit of 4.7 billion yen (up 400 million yen, or 9.5%, year-on-year).

					(Millions of yen)
	H1 FY03/25 results	H1 FY03/24		YoY
	results
	(April 1, 2024 to
	(April 1, 2023 to	Change		% change
	September 30, 2024)
	September 30, 2023)

Net sales	111,088	105,226	+5,862		+5.6%
Operating profit	4,660	4,254	+405		+9.5%
Ordinary profit	4,882	4,355	+526		+12.1%
Interim net profit	2,390	2,219	+170		+7.7%
EPS (yen)	18.30 YEN	17.00 YEN	+1.3 YEN		+7.7%

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 3,399 thousand,

up 40,768 from the count of 3,358 thousand at the beginning of the fiscal year. This resulted from active efforts

to win customers with the aim of achieving the Medium-Term Management Plan.

With net increase of 24,785 (LP and city) gas customers, 10,540 CATV customers, 13,323 Aqua customers,

and 4,492 Hikari Collaboration customers, we further expanded our earnings base.

3. Continued Growth in Revenue and Profit for FY2025, Setting New Record Highs in Sales and all Profits category

The fiscal year ending March 2025 is the second year of the "Mid-term Management Plan 2025." We will steadily implement each initiative set out in the mid-term management plan and make further leaps forward. In fiscal 2024, we will continue to hone our sales capabilities, one of the Group's strengths, to increase the number of customers and orders, and expand our customer base. In addition, we will continue to promote area expansion, M&A, and the creation of new businesses, and will continue to increase revenue and profits for the full year, reaching record highs in sales and all profit items.

At this time, there are no changes to the consolidated earnings forecast and dividend forecast for the fiscal year ending March 2025.

							(Millions of yen)
	FY03/25 forecast	FY03/24 results		YoY
	(April 1, 2024 to	(April 1, 2023 to
	Change		% change
	March 31, 2025)	March 31, 2024)

Net sales	244,000		231,513	+12,487		+5.4%
Operating profit	16,000		15,511	+489		+3.2%
Ordinary profit	16,000		15,531	+469		+3.0%
Profit attributable to	9,000		8,481	+519		+6.1%
owners of parent

EPS (yen)	68.90		64.94	+3.96		+6.1%
Customer count at end of	3,452,000		3,358,000	+94,000		+2.8%
fiscal year


	FY03/25		FY03/24		FY03/23
	(forecast)

Interim (end of Q2)	17.00 yen		16.00 yen		16.00 yen

Year-end	17.00 yen		17.00 yen		16.00 yen

Annual dividend per share	34.00 yen		33.00 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, 2025."

For the Company's earnings announcement for the first six months of the fiscal year ending March 31, 2025, please see the following URL: https://www.tokaiholdings.co.jp/english/ir/library/earnings.html

Contact: Sotohiro Horaguchi

Public Relations and Investor Relations Office

TEL: +81-(0)54-273-4878

Email: [email protected]

Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2025

TOKAI Holdings Corporation (Code: 3167)

November 1, 2024

Financial Highlights for the Second Quarter (Interim Period) of the Fiscal Year ending March 2025.

Sales has been updated to a record high for the fourth consecutive quarter, due to factors such as an increase in the number of group customers, expansion of corporate information and communication business, and steady progress in orders for Construction, Equipment and Real Estate.
Operating profit increased by 400 million yen compared to the same period last year, despite an increase in personnel costs due to wage increases continued from last year. This was due to an increase in the number of monthly billing items accompanying the increase in the number of customers and an increase in profits from Construction, Equipment and Real Estate.

		H1 FYE03/24 results	YoY
	H1 FYE03/25 results			% change


	(FY2023_2Q)
		Change
				(%)

Net sales	111,088	105,226	+5,862		+5.6

Operating profit	4,660	4,254	+405		+9.5

Ordinary profit	4,882	4,355	+526		+12.1

Profit attributable to	2,390	2,219	+170		+7.7
owners of parent

EPS (yen)	18.30	17.00	+1.30		+7.7

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

Steady Expansion of Customer Base in Core Businesses

The number of continuing transaction customers at the end of this interim period increased by 41,000 from 3,358,000 at the beginning of the period to 3,399,000.
The earnings base continued to expand in the gas business, the CATV business, the Aqua business, and the Hikari Collaboration business.

3,358

FY2023

Result

				+11	Others
		-3				Aqua	+13
	Information and		CATV	Mobile	-5

+25		Communications	Others	+0
Hikari			Broadcasting	+2
	Collaboration	+4	+11
			Communications
	LIBMO		-2
	ISP, etc.		-5
Gas
LP gas	+26					Customer count
City gas	-1
				(Thousand)

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

3,399

FY2024

H1 Result

Changes in Operating Profit by Segment

Energy profits increased due to an increase in the number of customers and strategic cost reviews and reductions.
Information and communication saw a decrease in profits due to upfront investments in organizational structure strengthening, despite the steady progress of cloud services.
CATV profits increased due to an increase in the number of customers, and Construction, Equipment and Real Estate profits increased due to the steady progress of construction orders.
Aqua saw a decrease in profits due to an increase in upfront costs for customer acquisition.

		-4.4					-0.3
					+1.9
+7.1						Aqua


				+1.0
	Information and	CATV Construction, Equipment
	Communications		and Real Estate

42.5 Energy

400 million yen profit growth YoY.

-1.3

Others,46.6 Adjustment

Operating profit (100 million yen)

Rights Reserved.

FY2023	FY2024
H1 Result	H1 Result
	* Changes in operating profit disregard allocation of indirect costs

Consolidated full-year financial results forecast

FYE 03/25 is the second year of our 'Medium-Term Management Plan 2025'. We're executing initiatives based on our growth tree model, aiming for further progress.
We will continue to expand our area, pursue M&A, and create new businesses, aiming to increase revenue and profits in 2024 and set new records in sales and all profit categories.

					(Millions of yen)

	FY03/24 forecast	FY03/24 results	YoY
	(April 1, 2024 to	(April 1, 2023 to
	March 31, 2025)	March 31, 2024)	Change	% change

Net sales	244,000	231,513	+12,487		+5.4％

Operating profit	16,000	15,511	+489		+3.2％

Ordinary profit	16,000	15,531	+469		+3.0％

Profit attributable to	9,000	8,481	+519		+6.1％
owners of parent

EPS (yen)	68.90	64.94	+3.96		+6.1％

Customer count at end	3,452,000	3,358,000	+94,000		+2.8％
of fiscal year

Dividend forecast

The annual dividend per share is set to increase by 1 yen to 34 yen.
Maintain a high dividend payout ratio.

60		Interim dividend	Year-end dividend		Commemorative dividend	Payout ratio	70.0%

			64.8%
50	52.9%	54.7%		50.8%	60.0%

49.3%

			46.7%			47.2%	44.5%	44.6%	46.7%				50.0%
40				43.4%
										34
									32	33
									32
								30	yen/share	yen/share	40.0%
				28	28	28	28	yen/share	yen/share

30				yen/share	yen/share	yen/share	yen/share	yen/share

		35.1%		6				16	17	16	17	17	30.0%
					14	14	14
20			14
12	12							20.0%
	yen/share	11
	yen/share	yen/share

10	6	6	8		14	14	14	14	15	16	16	17	10.0%

				11
	6	6	6
0										0.0%
FY2013	FY2014	FY2015	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024

												（Forecast）

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

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

					(Millions of yen)

	1H FY03/21	1H FY03/22	1H FY03/23	1H FY03/24	1H FY03/25
	Results	Results	Results	Results	Results

S a l e s	89,836	96,060	104,110	105,226	111,088

O p e r a t i n g	5,452	5,223	4,253	4,254	4,660
p r o f i t


R e c u r r i n g	5,499	5,284	2,432	4,355	4,882
p r o f i t


N e t i n c o m e	,279	2,281	147	2,219	2,390

E P S ( Y e n )	25.04	17.42	1.13	17.00	18.30

（２）S a l e s b y s e g m e n t

					(Millions of yen)

	1H FY03/21	1H FY03/22	1H FY03/23	1H FY03/24	1H FY03/25
	Results	Results	Results	Results	Results

Energy	3,430	6,153	44,053	42,952	45,406

Information and	25,131	25,302	26,078	27,457	28,361
Communications

For individuals				12,100	11,710

For corporations				15,356	16,651

ＣＡＴＶ	16,490	16,081	16,574	17,732	18,058

Construction,
Equipment and Real	9,074	12,361	11,486	10,943	11,944
Estate
Aqua	,880	,913	,838	3,883	4,784

Others	1,828	2,248	2,077	2,257	2,532

Total	89,836	96,060	104,110	105,226	111,088

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

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

					(Millions of yen)

	1H FY03/21	1H FY03/22	1H FY03/23	1H FY03/24	1H FY03/25
	Results	Results	Results	Results	Results

Energy	2,382	1,963	1,330	869	1,579

Information and	2,036	2,405	2,320	2,828	2,391
Communications

For individuals				512	427
For corporations				2,316	1,964

ＣＡＴＶ	2,633	2,957	,052	3,135	3,233

Construction,
Equipment and Real	621	738	589	578	771
Estate
Aqua	446	186	234	364	332

Others	-2,667	-3,027	-3,274	-3,520	-3,647

Total	5,452	5,223	4,253	4,254	4,660

※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.

（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 FY03/21	1H FY03/22	1H FY03/23	1H FY03/24	1H FY03/25
	Results	Results	Results	Results	Results

T o t a l a s s e t s	167,687	177,855	180,807	190,820	200,043

T o t a l	98,288	100,713	102,948	106,020	108,685
l i a b i l i t i e s


T o t a l n e t	69,398	77,142	77,859	84,800	91,358
a s s e t s


B a l a n c e o f
i n t e r e s t -	48,259	45,212	47,109	48,267	50,556
b e a r i n g d e b t

E q u i t y r a t i o	40.5 %	42.5 %	42.1 %	43.3 %	44.5 %

（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 FY03/21	1H FY03/22	1H FY03/23	1H FY03/24	1H FY03/25
	Results	Results	Results	Results	Results

Operating cash flow	14,805	11,382	7,956	13,765	9,783

Investment cash flow	-10,696	-8,997	-6,861	-9,704	-9,247

Free cash flow	4,109	2,384	1,095	4,060	536

Financing cash flow	-4,048	-1,680	-1,709	-3,018	-1,032

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

							(Thousand)

			1H FY03/21	1H FY03/22	1H FY03/23	1H FY03/24	1H FY03/25
			Results	Results	Results	Results	Results

Energy		728	764	804	837	878

Informationand Communications	Conventional ISP	79	86	414	400	387
etc.


		Hikari	32	39	58	368	378

		Collaboration

		LIBMO	51	54	62	75	78

		Subtotal	762	779	834	843	843

CATV		1,179	1,214	1,247	1,300	1,324

Aqua		161	165	167	166	180

Mobile		209	198	185	174	165

Security	16	16	16	16	16

		Total	3,042	3,125	3,242	3,328	3,399

*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.

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.

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： [email protected]