Investor Presentaiton
(Summary) Attraction and Growth Opportunities of the TOKAI Group
Expand the earnings base through both service area expansion and cross-
selling promotion, which will further improve corporate value
⚫ TOKAI, engaged in LP gas, information and communications services, CATV, Aqua, and
real estate businesses, is made up of a unique set of companies unprecedented in Japan.
In the future, we will use this differentiation to further enhance our corporate value.
Among these companies, the Group has more than 100 locations, about 1,500 sales representatives, and 2.25 million customers in
Shizuoka Prefecture and the Kanto region (1.16 million customers in Shizuoka Prefecture and a strong customer base of 1.09 million
customers in the Kanto region has been established as a result of our track record).
• We will continue to efficiently expand our earnings base on the two key points of service
area expansion and cross-selling promotion.
To build a more robust earnings base, we must expand the current business area to include more regions of Japan and build up our
customer base further. If we combine cross-selling with the current 2.54 million customers and sales of ¥200 billion, there is hidden
potential to increase operating income to ¥12 billion. We are hopeful this will come about.
Package contracts deployed by the Group will bring in three times more revenue than sales based on the LP gas business alone. Currently,
only 7% of customers have package contracts. We aim to expand power machine sales to all households, including existing customers and
new customers, as it is possible to start promotion of the set sales menu in hopes of effectively improving profitability.
In the past, our financial structure was fragile with a high debt ratio and significant
improvement was possible before the previous medium-term management plan (FY2011-
2013). In the future, we will shift our focus to ROE, while leveraging profitability
improvement measures.
For profit growth, we believe we must aggressively increase topline growth, including through M&A.
In the Innovation Plan 2016 "Growing" period, we're thinking to strengthen shareholder value. The goal of the plan achievement of the final
year of FY2016, we want to consider, actions such as dividend hikes and share buy back.View entire presentation