TOKAI HOLDINGS CORPORATION December 14, 2022
To whom it may concern
Company Name: TOKAI Holdings Corporation
Representative Name: | President & CEO |
Katsuo Oguri
(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 First Six Months of the Fiscal Year Ending March 31, 2023
- Net sales for the first six months grew for the second 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, 2023.
1. The Company continued to expand its earnings base to achieve a net annual increase of 100,000 in customer count.
The Company announced the Medium-Term Management Plan in May last year. The plan covers the period up to the fiscal year ending March 31, 2025.
Among its key strategies is to expand the business area. To pursue this strategy, the Company worked to increase market share in existing areas, to expand into new sales areas in Japan and to launch overseas operations. Taking the approach of selection and concentration with a focus on profitability, we boosted the number of customers.
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, aiming to achieve 3.30 million customers (a net annual increase of 100,000 in customer count) at the end of the fiscal year under review.
In operating activities in the first six months of the fiscal year under review, the Company aggressively conducted sales activities to gain customers while thoroughly taking measures to prevent COVID-19 infections and recorded 3,242,000 continuing customers as of September 30, 2022. This continuing customer exceeded the count at the beginning of the fiscal year (3,194,000) by 48,618 (versus an increase of 26,127 in the same period of the previous fiscal year).
With net increase of 19,094 (LP and city) gas customers (19,920 in the same period of the previous fiscal year), 15,910 CATV customers (16,613),11,849 Hikari Collaboration customers (1,985) and 6,852 LIMBO (MVNO service) customers (1,034), we further expanded our earnings base.
2. Net sales for the first six months grew for the second consecutive fiscal year to surpass 100 billion yen for the first time
For the first quarter under review, net sales stood at 104.1 billion yen, up 8.0 billion yen or 8.4% year on year. The figure surpassed the 100 billion yen mark for the first time ever, rising for the second consecutive year to a new record high. This resulted chiefly from sales growth following an increase in energy, CATV and other customers, rises in selling prices linked with energy purchase prices, and expansion of the stock business for corporate clients in the Information and Communication business.
On the profit front, operating profit stood at 4.3 billion yen, down 1.0 billion yen or 18.6% year on year. This is explained by LP gas purchase prices that were far higher than the level in the same period a year earlier and an increase in expenses for gaining customers in the Information and Communication business for consumers, which endeavored to shift towards a net increase in customers. 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, as well as a rise in profit in the Information and Communications business for corporate clients.
Profit attributable to owners of parent stood at 0.15 billion yen, down 2.13 billion yen or 93.5% year on year. This is due mainly to impairment losses of goodwill of an equity-method affiliate based in Vietnam and the posting of a loss on valuation of investment securities.
(Millions of yen) | ||||||
Q2 FY03/23 | Q2 FY03/22 | YoY | ||||
results | results | Change | % change | |||
(April 1, 2022 to September 30, | (April 1, 2021 to September 30, | |||||
2022) | 2021) | |||||
N e t | s a l e s | 104,110 | 96,060 | +8,049 | +8.4％ |
O p e r a t i n g | p r o f i t | 4,253 | 5,223 | -969 | -18.6％ | |||||
O r d i n a r y | p r o f i t | 2,432 | 5,284 | -2,851 | -54.0％ | |||||
Profit attributable to owners | 147 | 2,281 | -2,134 | -93.5％ | ||||||
o | f | p a | r | e | n | t | ||||
E | P S | ( | y | e | n | ) | 1.13 | 17.42 | -16.29 | -93.5％ |
3. To Achieve the Medium-Term Management Plan
With its Corporate Philosophy "For customers' livelihood along with the region, together with the earth, we will continue to grow and develop" as an unchanging value, the Group will adapt to changes in customers' lifestyles and changes in society and the environment and, while supporting and staying close to customers, aims to evolve into a Group that designs and provides the new lifestyles of the future. To this end, we are working on the Medium-Term Management Plan.
The fiscal year ending March 31, 2023 is the second fiscal year of the Medium-Term Management Plan. For this period, the Group will make concerted efforts to accelerate the expansion of business areas and digital marketing, to create open innovation, to step up the DX strategy, to optimally allocate management resources, and to strengthen its SDG initiatives.
To date, the earnings and dividend forecasts for the fiscal year ending March 31, 2023 remain unchanged from those announced on May 10, 2022.
(Millions of yen) | ||||||||||||||
FY03/23 forecast | FY03/22 results | YoY | ||||||||||||
(April 1, 2022 to | (April 1, 2021 to | |||||||||||||
Change | % change | |||||||||||||
March 31, 2023) | March 31, 2022) | |||||||||||||
N | e | t | s | a | l | e | s | 223,000 | 210,691 | +12,309 | +5.8％ | |||
O p e r a t i n g | p r o f i t | 14,500 | 15,794 | -1,294 | -8.2％ | |||||||||
O r d i n a r y | p r o f i t | 14,300 | 15,907 | -1,607 | -10.1％ | |||||||||
Profit attributable to owners | 8,300 | 8,969 | -669 | -7.5％ | ||||||||||
o | f | p | a | r | e | n | t | |||||||
E | P | S | ( | y | e | n | ) | 63.43 | 68.49 | -5.06 | -7.5％ | |||
Customer count at end of | 3,295,000 | 3,194,000 | +101,000 | +3.2％ | ||||||||||
f i | s | c a | l | y e a | r | |||||||||
FY03/23 | FY03/23 | FY03/22 | ||||||||||||
(forecast) | ||||||||||||||
I n t e r i m | ( e n d | o f | Q 2 ) | 16.00 yen | 15.00 yen | |||||||||
Y e a r - | e | n | d | 16.00 yen | 17.00 yen | |||||||||
Annual dividend per share | 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, 2023."
For the Company's earnings announcement for the first six months of the fiscal year ending March 31, 2023, please see the following URL:
https://www.tokaiholdings.co.jp/ir/library/earnings.html
- For the details of the Medium-Term Management Plan, please see the following URL: https://www.tokaiholdings.co.jp/ir/management/manageplan.html
Financial Results for the Second Quarter of the
Fiscal Year Ending March 31, 2023
TOKAI Holdings Corporation
(Code: 3167)
December 14, 2022
Expansion of earnings base proceeds
- The number of continuing customers as of September 30, 2022 stood at 3,242 thousand, an increase of 49 thousand from 3,194 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 LIMBO business.
Gas (LP and city) | CATV | Hikari Collaboration | LIBMO | ||||||||
(Thousand) | +20 | +19 | +25 | +12 | +7 | ||||||
+17 | +16 | +8 | |||||||||
+4 | |||||||||||
804 | 358 | ||||||||||
+15 | 1,247 | 62 | |||||||||
+2 | +1 |
n
764 | 1,214 | 339 | 54 | ||||||||||||||||||
728 | 1,179 | 332 | 51 | ||||||||||||||||||
FY2020_2Q | FY2021_2Q | FY2022_2Q | FY2020_2Q | FY2021_2Q | FY2022_2Q | FY2020_2Q | FY2021_2Q | FY2022_2Q | |||||||||||||
FY2020_2Q | FY2021_2Q | FY2022_2Q | |||||||||||||||||||
(Two years earlier) | (Previous fiscal | (Current fiscal | (Two years | (Previous fiscal | (Current fiscal | (Two years | (Previous fiscal | (Current fiscal | |||||||||||||
(Two years | (Previous fiscal | (Current fiscal | |||||||||||||||||||
year) | year) | earlier) | year) | year) | earlier) | year) | year) | ||||||||||||||
earlier) | year) | year) | |||||||||||||||||||
Number at end of period | Net increase | Number at end of period | Net increase | Number at end of period | Net increase | Number at end of period | Net increase | ||||||||||||||
* Rounded to the nearest thousand | 1 |
Massive 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)
3,575 | 5,957 | 2,103 |
3,477 | |||||||||
2,050 | |||||||||
150 (up 7.6%) | |||||||||
450 (up 14.4%) | 3,400 | ||||||||
5,644 | |||||||||
2,024 | |||||||||
3,327 | |||||||||
690 (up 13.1%) | 2,007 | ||||||||
3,251 | |||||||||
3,126 | 1,963 | ||||||||
5,269 | 1,955 | ||||||||
1,944 | |||||||||
1H | 2H | 1H | 2H | 1H | 2H | 1H | 1H | 2H | 1H | 2H | 1H | 2H | 1H | 1H | 2H | 1H | 2H | 1H | 2H | 1H | |
FY2019 | FY2020 | FY2021 | FY2022 | FY2019 | FY2020 | FY2021 | FY2022 | FY2019 | FY2020 | FY2021 | FY2022 | ||||||||||
LP Gas Business | CATV Business | Hikari Collaboration | 2 | ||||||||||||||||||
Q2 net sales grow for the second
consecutive year to set new record high
- Net sales rose for the second fiscal year to reach a new record high. This is the first time the net sales figure for the first six months has surpassed 100 billion yen. The result chiefly reflects an increase in customers, rises in selling prices linked with energy purchase prices, and expansion of the Information and Communication business for corporate clients.
- Operating profit fell 1 billion yen year on year, primarily because of soaring LP gas purchase prices and an increase in expenses for gaining customers, despite earnings growth after an increase in the number of monthly fee-paying customers accompanying an increase in the number of customer accounts, as well as a rise in profit in the Information and Communications business for corporate clients.
- Profit attributable to owners of parent dropped 2.1 billion yen on year, due mainly to impairment losses of goodwill of an equity-method affiliate and the posting of a loss on valuation of investment securities.
(Net sales and profit: million yen; EPS: yen)
Q2 FY03/23 results | Q2 FY03/22 results | YoY | |||||
(April 1, 2022 - | (April 1, 2021 - | ||||||
Change | % change | ||||||
September 30, 2022) | September 30, 2021) | ||||||
Net sales | 104,110 | 96,060 | +8,049 | +8.4% | |||
Operating profit | 4,253 | 5,223 | -969 | -18.6% | |||
Ordinary profit | 2,432 | 5,284 | -2,851 | -54.0% | |||
Profit attributable to | 147 | 2,281 | -2,134 | -93.5% | |||
owners of parent | |||||||
EPS (yen) | 1.13 | 17.42 | -16.29 | -93.5% | 3 | ||
Year-on-year comparison
in 2Q operating profit by segment
- Energy, CATV and Aqua profits surged following increases in customers. Information and Communication for corporate clients was also strong.
- A profit decline in Energy is due mainly to the rise in gas purchase costs (of 1.8 billion yen year on year).
- The number of customers gained in Information and Communications for individuals rise considerably year on year whereas the expenses for gaining customers increased.
3.12 | Operating profit | 3.24 | ||||||||||||
60.0 | (100 millions of yen) | |||||||||||||
million | million | |||||||||||||
customers | customers | |||||||||||||
50.0 | 52.2 | -6.3 | -0.8 | +1.0 | -1.5 | +0.5 | -2.5 | |||||||
40.0 | 42.5 | |||||||||||||
Energy | Information and | CATV | Construction, | Aqua | Others and | |||||||||
Communications | Equipment, and | adjustments | ||||||||||||
Increase in | Increase in | Increase in | ||||||||||||
+4.1 | For | +1.0 | Real Estate | +0.1 | Wedding | |||||||||
30.0 | customers | customers | customers | |||||||||||
corporate | +3.2 | ceremonies | +1.3 | |||||||||||
Purchase | Acquisition | |||||||||||||
-10.6 | Renovation | -0.3 | +0.4 | |||||||||||
clients | and others | |||||||||||||
costs | costs | |||||||||||||
For | ||||||||||||||
Cost for | Building | Adjustments | -3.8 | |||||||||||
－ | individual | +0.8 | -1.2 | |||||||||||
customer | facilities | |||||||||||||
20.0 | clients | |||||||||||||
acquisition | ||||||||||||||
Acquisition | ||||||||||||||
Temperature | -4.9 | |||||||||||||
-2.8 | costs | |||||||||||||
and others | ||||||||||||||
10.0 | Other | +3.0 | LIBMO | +0.1 | ||||||||||
0.0 | ||||||||||||||
FY20211_2Q | エネルギー | 情報通信 | CATV | 建築不動産 | アクア | その他調整額 | FY2022_2Q | |||||||
分類 7 | ||||||||||||||
Results | Results | |||||||||||||
* Changes in operating profit disregard allocation of indirect costs. | 4 | |||||||||||||
Optimal Allocation of Management Resources
for Increasing Shareholder Value
- The equity ratio continued to rise by 0.2 percentage points.
- Although free cash flow declined year on year, the ratio of interest-bearing debt to EBITDA stayed at 1.5, unchanged from the end of the previous fiscal year.
Equity ratio | 41.9 | % | ➡ | 42.1 | % |
End of March 2022 | End o September 2022 | ||||
Interest bearing liabilities | 44.1 | billion yen | ➡ | 47.1 | billion yen |
End of March 2022 | End of September 2022 | ||||
Operating cash flow | 11.4 | billion yen | ➡ | 8.0 | billion yen |
FY09/2021 | FY09/2022 | ||||
Investment cash flow | -9.0 | billion yen | ➡ | -6.9 | billion yen |
FY09/2021 | FY09/2022 | ||||
Free cash flow | 2.4 | billion yen | ➡ | 1.1 | billion yen |
FY09/2021 | FY09/2022 | ||||
Interest-bearing debt/EBITDA | 1.4 | times | ➡ | 1.5 | times |
FY03/2022 | FY09/2022 | ||||
* The ratio of interest-bearing debt to EBITDA for 1H of FY2022 is based on the full-year forecast EBITDA. | 5 |
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Tokai Holdings Corporation published this content on 23 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 December 2022 06:23:02 UTC.
