Tokai Holdings Corporation TSE:3167

TOKAI : Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2024 ~ Revenue Growth for Four Consecutive Quarters, Record-High Sales ~

Published

Source: MarketScreener

August 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 Three Months of the Fiscal Year Ending March 31, 2024

~ Revenue Growth for Four Consecutive Quarters, Record-High Sales ~

Today, we are pleased to announce our financial results for the first quarter of the fiscal year ending March 2025.

1. Record-High Revenue for Four Consecutive Quarters

In May last year, we announced our "Mid-Term Management Plan 2025," which concludes in fiscal year 2025. Over the three years leading up to 2025, we aim to achieve three key strategies: (1) Growth in Business Profitability, (2) Strengthening the Foundation for Sustainable Growth, and (3) Maximizing the Vitality of Human Resources and Organization. Through these strategies, we aim to contribute to a sustainable society while expanding our revenue base.

For the first quarter, our revenue increased due to a rise in the number of customers in sectors such as energy and CATV, as well as the expansion of our corporate stock business in the information and communication sector.

As a result, our sales reached 56.2 billion yen (an increase of 2.2 billion yen or 4.1% year-on-year), marking a record high for the fourth consecutive quarter.

On the profit side, although there was an increase in labor costs due to wage hikes continued from last year, the steady increase in monthly billing numbers due to the rise in customer numbers and strategic cost review and reduction led to an operating profit of 3.3 billion yen (an increase of 0.8 billion yen or 33.6% year-on-year).

(Millions of yen)

FY03/25 results

FY03/24 results

YoY

(April 1, 2024 to

(April 1, 2023 to

Change

% change

June 30, 2024)

June 30, 2023)

Net sales

56,205

53,971

+2,234

+4.1％

Operating profit

3,319

2,484

+835

+33.6％

Ordinary profit

3,441

2,617

+824

+31.5％

Net income for the term

1,872

1,338

+534

+39.9％

EPS (yen)

14.33

10.25

+4.08

+39.8％

2. Main Business Steadily Expands Customer Base

In our first-quarter business activities, we actively engaged in customer acquisition efforts to achieve our mid- term management plan. As a result, the number of ongoing customer transactions at the end of the first quarter increased by 25,563 to 3,384,000 from 3,358,000 at the beginning of the period.

We saw a net increase of 20,547 gas (LP and city gas) customers, 4,642 CATV customers, 5,778 Aqua customers, and 1,804 Hikari Collaboration customers, further expanding our revenue base.

3. Continued Revenue and Profit Growth in FY2025, Record-HighSales and Profit in All Categories Fiscal year 2025 marks the second year of our "Mid-Term Management Plan 2025." We will continue to execute the initiatives outlined in the plan to achieve further growth. In fiscal year 2024, we will enhance our group's strong sales capabilities to increase the number of customers and orders, thereby expanding our customer base. Additionally, we will continue to promote area expansion, M&A, and the creation of new businesses. We expect to maintain revenue and profit growth throughout the year, achieving record-high sales and profit in all categories. At this point, there are no changes to our consolidated earnings forecast or 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)

17.00yen

16.00 yen

16.00 yen

Year-end

17.00yen

17.00yen

16.00 yen

Annual dividend per share

34.00yen

33.00yen

32.00 yen

For details, please see the attached materials, entitled "Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2025."

For the Company's earnings announcement for the first three months 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 / Investor Relations Office

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

Email: [email protected]

©2023 TOKAI Holdings Corporation. All Rights Reserved.

Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2025

TOKAI Holdings Corporation (Code: 3167)

August 1, 2024

1

©2023 TOKAI Holdings Corporation. All Rights Reserved.

Highlights of the First Quarter Financial Results for the Fiscal Year Ending March 2025

  • Revenue increased for the fourth consecutive period, reaching a record high, driven by growth in customer numbers in sectors such as energy and CATV, as well as the expansion of corporate information and communication services.
  • Operating profit increased by 800 million yen year-on-year, despite higher personnel costs due to wage increases continued from last year. This was supported by an increase in monthly subscription numbers due to the rise in customer numbers and improved profit margins in LP gas.

YoY

1Q FY2024 results

1Q FY2023 results

Change

% change

(%)

Net sales

56,205

53,971

+2,234

+4.1

Operating profit

3,319

2,484

+835

+33.6

Ordinary profit

3,441

2,617

+824

+31.5

Profit attributable to

1,872

1,338

+534

+39.9

owners of parent

EPS (yen)

14.33

10.25

+4.08

+39.8

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

2

Steady Expansion of Customer Base in Core Businesses

  • The number of continuing customers as of June 30, 2023 stood at 3,384 thousand, an increase of 26 thousand from 3,358 thousand at the beginning of the fiscal year.
  • The earnings base continued to expand in the gas, CATV, aqua, and Hikari Collaboration business.

©2023 TOKAI Holdings Corporation. All Rights Reserved.

3,358

FY2023

Result

+3

+5

Others

-2

+6

Aqua

Information and

CATV

Mobile

-4

Communications

Broadcasting

+0

Others

+1

Hikari

+21

+2

Communications

+4

Collaboration

LIBMO

-1

ISP, etc.

-3

  • Gas

LP gas

+21

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.

3,384

FY2024

1Q Result

3

©2023 TOKAI Holdings Corporation. All Rights Reserved.

Consolidated Full-year Financial Results Forecast

  • The fiscal year ending March 2025 marks the second year of the "Mid-Term Management Plan 2025." We will continue to execute various initiatives in line with the growth tree, which consists of the three elements: "Roots of Growth," "Core," and "Fruits," to achieve further progress.
  • We will continue to promote area expansion, M&A, and the creation of new businesses, aiming to sustain revenue and profit growth in FY2024, achieving record highs in sales and all profit categories.

(Millions of yen)

FY2024 forecast

FY02023 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

5,511

+489

+3.2％

Ordinary profit

16,000

5,531

+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

3,452,000

3,358,000

+94,000

+2.8％

at end of fiscal year

4

©2023 TOKAI Holdings Corporation. All Rights Reserved.

Dividend Forecast

  • The annual dividend per share is planned to increase by 1 yen from the previous fiscal year, reaching 34 yen per share.
  • The dividend payout ratio will continue to remain at a high level.

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

33

32

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

17

16

17

17

30.0%

14

14

14

16

20

14

12

12

20.0%

11

yen/share

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)

5

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.

6

©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)

Q1 FY03/21

Q1 FY03/22

Q1 FY03/23

Q1 FY03/24

Q1 FY03/25

Results

Results

Results

Results

Results

S a l e s

45,113

48,396

51,803

53,971

56,205

O p e r a t i n g

3,783

3,226

3,355

2,484

3,319

p r o f i t

R e c u r r i n g

3,830

3,353

3,389

2,617

3,441

p r o f i t

N e t i n c o m e

2,445

,870

,795

1,338

1,872

E P S ( Y e n )

8.68

4.28

3.72

10.25

14.33

7

©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)

Q1 FY03/21

Q1 FY03/22

Q1 FY03/23

Q1 FY03/24

Q1 FY03/25

Results

Results

Results

Results

Results

Energy

7,634

8,998

23,274

23,966

24,669

Information and

2,650

2,619

2,873

13,468

13,994

Communications

For individuals

6,035

5,845

For corporations

7,433

8,149

ＣＡＴＶ

8,226

7,996

8,239

8,820

8,978

Construction,

Equipment and Real

3,819

5,542

4,641

4,852

5,080

Estate

Aqua

,896

,921

,860

1,871

2,285

Others

885

,319

915

992

1,197

Total

45,113

48,396

51,803

53,971

56,205

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

8

©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)

Q1 FY03/21

Q1 FY03/22

Q1 FY03/23

Q1 FY03/24

Q1 FY03/25

Results

Results

Results

Results

Results

Energy

,972

,578

,936

924

1,862

Information and

,110

,224

,236

1,456

1,177

Communications

For individuals

272

177

For corporations

1,184

1,000

ＣＡＴＶ

,367

,459

,559

1,618

1,652

Construction,

Equipment and Real

233

263

53

126

226

Estate

Aqua

271

37

62

98

136

Others・

-1,171

-1,337

-1,494

-1,739

-1,734

Total

3,783

3,226

3,355

2,484

3,319

※Figures are before the allocation of indirect costs, etc.

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

9

©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)

Q1 FY03/21

Q1 FY03/22

Q1 FY03/23

Q1 FY03/24

Q1 FY03/25

Results

Results

Results

Results

Results

T o t a l a s s e t s

68,253

76,837

83,065

188,637

206,246

T o t a l

00,025

01,165

03,809

106,520

114,171

l i a b i l i t i e s

T o t a l n e t

68,228

75,672

79,256

82,117

92,074

a s s e t s

B a l a n c e o f

i n t e r e s t -

48,127

43,428

45,452

46,246

52,133

b e a r i n g d e b t

E q u i t y r a t i o

39.7 %

41.9 %

42.3 %

42.4 %

43.5 %

10

©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)

Q1 FY03/21

Q1 FY03/22

Q1 FY03/23

Q1 FY03/24

Q1 FY03/25

Results

Results

Results

Results

Results

Operating cash flow

0,837

8,339

6,049

8,414

5,507

Investment cash flow

-7,579

-5,716

-4,262

-4,252

-6,701

Free cash flow

3,257

2,623

,786

4,161

-1,193

Financing cash flow

-3,022

-2,282

-2,067

-3,678

2,032

11

©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)

Q1 FY03/21

Q1 FY03/22

Q1 FY03/23

Q1 FY03/24

Q1 FY03/25

Results

Results

Results

Results

Results

Energy

718

752

791

830

874

Informationand Communications

Conventional ISP

383

391

413

403

390

etc.

Hikari

328

337

351

365

375

Collaboration

LIBMO

50

53

58

72

79

Subtotal

760

781

823

840

844

CATV

,161

,206

,240

1,293

1,318

Aqua

59

64

66

165

173

Mobile

211

201

87

176

166

Security

6

6

6

16

16

合計

3,012

3,108

3,213

3,312

3,384

*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.

12

©2023 TOKAI Holdings Corporation. All Rights Reserved.

The performance forecasts and future projections described in this document are based on information available at the time of writing and represent the company's judgment. These forecasts include potential risks and uncertainties. Therefore, please be aware that actual performance may differ significantly from the future outlook described due to various factors.

Amounts are rounded down to the nearest million yen, and other figures are rounded to the nearest whole number.

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]

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