Medium-Term Management Plan

Our company has been providing comprehensive lifestyle services for our customers, and in Shizuoka Prefecture in particular, two out of three households use services from our group.
As we expand this "Shizuoka Model" nationwide, we aim not only to firmly support the foundation of our customers' lives, but also to contribute more than ever to solving regional and social issues in Japan, as well as global challenges. Through these efforts, we strive to become a "social value creation company."

In addition to understanding and contributing to the environment and local communities, our future vision is to become Japan’s leading company in living infrastructure by further strengthening our capabilities in proposals and technology, which are our core strengths.

The following are the four newly established pillars of our Sustainability Strategy.

For each pillar, we have defined our vision for 2030, and we will work towards its realization.

For details, please refer to the press release "Notice Regarding the Review of TOKAI Group Materiality (Key Issues) " [PDF:537KB]published on May 8, 2026.

As an indicator driving both business growth and the expansion of shareholder value, we aim to achieve an ROE of 15% in fiscal year 2030.
To achieve this goal, a significant leap exceeding our previous growth pace will be required over the next five years. By executing our business strategy as well as our financial and capital strategy, we will strive for accelerated growth.

In terms of business growth, we will increase net income from 10.7 billion yen in fiscal year 2025 to 13.5 billion yen in fiscal year 2028.
Regarding shareholder returns, our targets are a dividend payout ratio of over 45% and acquisition of treasury shares totaling over 10 billion yen over three years.
For financial soundness, we aim to maintain a capital adequacy ratio of over 40%.
As for non-financial indicators, in the environmental field, we aim to achieve a GHG reduction rate of 50% by 2030; and in the area of human capital, we plan to increase operating profit per employee by 15% compared to fiscal year 2025.

By achieving these targets, we aim to reach a record-high ROE of 13% in fiscal year 2028.

By simultaneously expanding business profits and strengthening shareholder returns, we will vigorously promote improved capital efficiency and the maximization of corporate value.

For business expansion, simultaneous growth in three directions is essential: “expansion of Area,” “increase in Accounts,” and “improvement of ARPU.”
Since all of these begin with the letter “A,” we have named this the “Triple Accel Strategy,” through which we will accelerate growth in all three directions.

Based on the "Triple Accel Strategy," we will simultaneously expand our business foundation and strengthen our profitability, leading to sustained growth.

Our group has engaged in a variety of businesses and has been promoting business portfolio management.

Going forward, we will continue to actively allocate management resources to business areas with growth potential, based on our policy of "selection and concentration."
In particular, we position the energy business, corporate information and communications business, and CATV business as growth areas, and aim to expand their scale through active investment such as M&A.

Until now, we have prioritized financial stability and steadily accumulated profits. Going forward, we will also place a strong emphasis on capital efficiency, aiming to achieve an optimal capital structure.

In addition to operating cash flows of approximately 90 billion yen over three years, we plan to utilize interest-bearing debt to secure a total of 100 billion yen in cash.

On the other hand, we will allocate a total of approximately 75 billion yen to growth investments. Of this amount, 55 billion yen will be allocated to maintaining and strengthening our earnings base, and 20 billion yen to inorganic growth investments, mainly in the energy business.

As for shareholder returns, we expect to allocate approximately 26 billion yen through dividends and the acquisition of treasury shares.
Depending on the progress of growth investments, we plan to flexibly redirect funds to shareholder returns.

Through strategic initiatives based on the four pillars of our Sustainability Strategy, we will achieve corporate growth, improved profitability, and ultimately enhance our corporate value.

Toward our GHG emission reduction targets for fiscal year 2030, we will work not only on our own business activities, but also on the "creation of environmental value" throughout the entire supply chain, striving to balance this with business growth.

We regard human capital as an important element of our management, and have implemented various initiatives.
This time, in order to clearly define its connection with our management strategy and further strengthen this linkage, we have established "operating profit per employee" as a new key goal indicator (KGI) for human capital.

Each employee will actively engage with customers, quantifying the outcomes generated by the "Triple Accel Strategy" and directly connecting these results to the company's growth.

Our group develops a wide range of businesses and centrally manages customer information using the "TOKAI Map."

Through analysis of this data, we are able to uncover latent customer needs and provide optimal services.

As of the end of March 2026, the TLC app has about 500,000 members, and we are working to enhance the customer experience value by strengthening digital touchpoints.
Furthermore, in the current fiscal year, we have established a dedicated AI strategy organization to pursue advanced and accelerated DX (digital transformation). Through these initiatives, we aim to balance customer satisfaction with business growth.

Our company has pursued shareholder returns with a trend of increasing dividends. Over the next three years, we plan to further strengthen this approach and link it to achieving our ROE target.

Specifically, we plan to raise our dividend payout ratio to over 45%, accelerating shareholder returns at a faster pace than before.
In addition, from the perspective of pursuing an optimal capital structure, we plan to acquire more than 10 billion yen of treasury shares over the next three years, aiming for more active and clear shareholder returns.

Through these initiatives, our total shareholder return ratio is expected to reach approximately 70%. We will continue to strive to enhance corporate value so that we can provide long-term value to our shareholders.