TOKAI Holdings

Basic Information

Stock Code
3167
Industry
Wholesale
Category Detail
Electric Power & Gas
Prefecture
Shizuoka Prefecture
Establishment Year
April 2011
Listing Year
April 2011
Official Website
https://www.tokaiholdings.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Asante, Nichigas, Chuo Soko, Nippon Kanzai HD, Tokyo Gas, Osaka Gas, Toho Gas, Hokkaido Gas, Hiroshima Gas, Saibu Gas Holdings, Hokuriku Gas, Keiyo Gas, Shizuoka Gas

Overview

TOKAI Holdings is a holding company established in 2011, serving as the core enterprise that deploys multifaceted services closely tied to local communities, centered on energy supply and telecommunications businesses.

Current Situation

TOKAI Holdings boasts consolidated sales of approximately 196 billion yen (fiscal year ended March 2020), with its base in Shizuoka Prefecture and expansion into the Tokyo metropolitan area, primarily through LP gas sales and CATV operations. Under its holding company structure, it encompasses a diverse range of group companies engaged in energy, telecommunications, nursing care, construction, and more. In recent years, it has strengthened IT infrastructure and internet services, while focusing on DX initiatives for future growth. In a competitive industry landscape, it pursues localized service provision and customer base expansion. Additionally, through business integrations, it seeks synergy effects and sustainable management. It actively engages in environmental and community contribution activities with a strong emphasis on social responsibility, aiming for stable growth moving forward.

Trivia

Interesting Facts

  • Relatively new holding company established through a management integration in 2011.
  • One of the few companies deploying LP gas and communications businesses centered in Shizuoka Prefecture and also in the Tokyo metropolitan area.
  • Regional hybrid company balancing communications and energy supply.
  • Rare holding company structure owning numerous cable television stations within the group.
  • Strength in multifaceted deployment of local life services.
  • Builds diverse business portfolio through abundant group subsidiaries.
  • Possesses trust and track record cultivated over many years in the Tokai region industry.
  • Proactive in introducing the latest technologies related to communication services.
  • Actively participates in social activities aimed at regional contributions.
  • Utilizes diverse regional brands in its brand strategy.
  • Among companies established after Heisei era, a relatively large listed company.
  • Employs advanced systems for stable LP gas supply management.
  • Cable television services feature diverse plan configurations by region.
  • New entries into nursing care and welfare fields are gaining attention.
  • Focusing on rollout of new environmentally considerate energy services.

Hidden Connections

  • Strengthens collaboration with regional cable network companies to provide regionally focused services in close coordination with local governments.
  • Leverages LP gas supply network to form a network serving as energy supply bases during disasters.
  • Achieves seamless service provision of communications and energy through sharing of technical resources among group companies.
  • Contributes to regional economic revitalization through partnerships with local banks and financial institutions.
  • Deploys measures to improve customer satisfaction through cross-selling of nursing care services with electricity and communications businesses.
  • Promotes introduction of cutting-edge technologies to local industries through IT and system development subsidiaries.
  • As an environmentally considerate company, actively responds to government energy policies while being influenced by them.
  • Creates economic synergies by spanning multiple industries in the region through its corporate group.

Future Outlook

Growth Drivers

  • Strengthening customer base through expansion of regionally focused services
  • Advanced communication infrastructure and new customer development
  • Energy business deployment for low-carbon society
  • Business efficiency and new service creation through IT and DX introduction
  • Expansion of nursing care and welfare businesses in response to aging society
  • Sustainable business promotion in response to strengthened environmental regulations
  • Brand strengthening through enhanced collaboration with regional communities
  • Risk diversification and stable revenue base through multifaceted deployment
  • Utilization of government regional revitalization support measures
  • Expanded utilization of next-generation communication technologies 5G and IoT

Strategic Goals

  • National expansion of regional energy supply market share
  • 50% reduction in group-wide CO2 emissions
  • Achieve doubling of communication business subscribers
  • Double nursing care and welfare business sales from current levels
  • 30% improvement in business efficiency through DX promotion
  • Annual investment in new business areas on scale of 10 billion yen
  • Enhancement of CSR programs for regional society
  • Improvement in employee diversity and work-life balance
  • Achieve 100% renewable energy utilization rate
  • Establishment of sustainable management structure

Business Segments

Energy Supply Segment

Overview
Provides business-use energy supply and related equipment on a one-stop basis.
Competitiveness
Regionally focused stable supply system and diverse energy product lineup
Customers
  • Restaurants
  • Factories
  • Public facilities
  • Building and condominium management associations
  • Retailers
Products
  • LP Gas Supply
  • City Gas Supply
  • Electricity Retail Services
  • Gas Appliance Sales and Installation
  • Energy Consulting

Communications and CATV Business Segment

Overview
Provides diverse communication services on a regionally focused basis to expand customer base.
Competitiveness
Service integration rooted in the region and possession of high-quality communication networks
Customers
  • Households
  • Small and medium enterprises
  • Local governments
  • Educational institutions
  • Commercial facilities
Products
  • CATV Services
  • Internet Connections
  • IP Phone Services
  • On-Demand Delivery
  • Network Construction Support

Nursing Care and Daily Life Support Services

Overview
Provides high-quality nursing care services for regional welfare to address social issues.
Competitiveness
Care rooted in the region and comprehensive strength of the group
Customers
  • Elderly
  • Nursing facilities
  • Local governments
  • Medical institutions
  • Service providers
Products
  • Home-visit Nursing Care
  • Day Care Services
  • Daily Life Support Services
  • Welfare Equipment Rental
  • Nursing Care Consulting

Construction and Maintenance Business

Overview
Provides construction and maintenance services for industrial facilities and buildings.
Competitiveness
Highly skilled specialized staff and extensive service network
Customers
  • Manufacturing
  • Logistics companies
  • Local governments
  • Real estate management companies
  • Energy-related facilities
Products
  • Equipment Works
  • Shipbuilding-Related Works
  • Building Maintenance
  • Electrical Works
  • Maintenance Services

IT and System Development Business

Overview
Provides diverse IT services tailored to customer needs to support business efficiency.
Competitiveness
Regionally focused custom solution provision capabilities
Customers
  • Small and medium enterprises
  • Local public entities
  • Educational institutions
  • Medical institutions
  • Distributors
Products
  • System Development
  • IT Consulting
  • Cloud Services
  • Network Construction
  • Security Measures

Logistics and Transportation Business

Overview
Deploys transportation and warehouse services tailored to diverse logistics needs.
Competitiveness
Extensive logistics network and experienced operational structure
Customers
  • Manufacturing
  • Wholesalers
  • Trading companies
  • Retail
  • Food industry
Products
  • Freight Transportation
  • Warehouse Management
  • Marine Logistics
  • Logistics Consulting
  • Delivery Services

Cable Network Management and Expansion Business

Overview
Manages and operates regional network infrastructure to ensure communication quality.
Competitiveness
Flexible and prompt response leveraging regional characteristics
Customers
  • Cable television operators
  • Local governments
  • Real estate developers
  • Telecommunications equipment manufacturers
  • Service providers
Products
  • Cable Infrastructure Construction
  • Network Maintenance
  • Troubleshooting
  • Technical Support
  • IP Network Expansion

Environmental Energy Solutions

Overview
Provides solutions to support environmental load reduction and energy efficiency.
Competitiveness
Comprehensive environmental services and regionally focused track record
Customers
  • Companies
  • Public institutions
  • Environmental businesses
  • Real estate management companies
  • School corporations
Products
  • Energy-Saving Equipment Proposals
  • Renewable Energy Introduction Support
  • Environmental Consulting
  • Energy Monitoring
  • CO2 Reduction Programs

Gas-Related Appliance Sales and Maintenance Services

Overview
Provides integrated gas appliance-related services from sales to maintenance.
Competitiveness
High service quality supported by prompt response and advanced technology
Customers
  • Home builders
  • Construction companies
  • Real estate management
  • Home owners
  • Industrial parks
Products
  • Gas Water Heater Sales
  • Gas Appliance Installation
  • Maintenance Inspection Services
  • Emergency Response Services
  • Safety Training

Welfare and Nursing Care-Related System Development

Overview
System development business that supports ITization of nursing care sites and promotes business efficiency.
Competitiveness
Specialized IT solutions tailored to the nursing care industry
Customers
  • Nursing facilities
  • Medical institutions
  • Welfare organizations
  • Local governments
  • Nursing care service providers
Products
  • Care Management Systems
  • User Management Software
  • Nursing Care Record Systems
  • Schedule Management
  • Data Analysis Tools

Real Estate Management Services

Overview
Provides comprehensive real estate-related services leveraging extensive experience.
Competitiveness
Regionally focused and multifaceted service provision capabilities
Customers
  • Condominium management associations
  • Commercial facility operators
  • Corporate owners
  • Individual owners
  • Local governments
Products
  • Building Management
  • Cleaning and Security
  • Lease Management
  • Asset Management Consulting
  • Equipment Inspections

Education and Incubation Business

Overview
Provides support services to promote new business development and human resource education.
Competitiveness
Multifaceted support structure through group collaboration
Customers
  • Local governments
  • Educational institutions
  • Startups
  • Venture investors
  • Corporate training institutions
Products
  • Technical Training Programs
  • Venture Capital Business
  • Incubation Support
  • Human Resource Development Consulting
  • Growth Acceleration

Competitive Advantage

Strengths

  • Strong regionally focused customer base
  • Diversified business portfolio
  • Stable energy supply system
  • Well-developed network infrastructure
  • Synergy effects among group companies
  • Accumulated technology and know-how
  • Stable financial foundation
  • Strong ties with local communities
  • Flexible service provision system
  • Long years of industry experience
  • Diverse sales channels
  • High customer satisfaction
  • Enhanced awareness of CSR and environment
  • Expanding communication services
  • Comprehensive human resource development programs

Competitive Advantages

  • Differentiation from competitors through comprehensive services via diverse subsidiaries
  • Fusion business model of energy and communications centered on the region
  • Broad service deployment including Tokyo metropolitan area and numerous customer touchpoints
  • Robust infrastructure development and proactive investment in information and communication technology
  • Gains trust through stable gas and electricity supply
  • Achieves risk diversification through diversified revenue sources
  • Demonstrates comprehensive service strength through intra-group collaboration
  • Low churn rate and high customer loyalty due to regional focus
  • Holding company structure enables efficient management and swift decision-making
  • Improves business efficiency and customer convenience through advanced IT utilization
  • Differentiation by addressing social needs in nursing care and environment
  • Ensures service continuity with comprehensive maintenance system
  • Secures broad customer network through diverse sales channels
  • Advances business with emphasis on environmental consideration for sustainable management
  • Enables stable investments due to financial soundness

Threats

  • Intense price competition with major urban gas and electricity companies
  • Risks from regulatory and legal changes in the energy market
  • Need to adapt business to global warming and strengthened environmental regulations
  • Rapid changes and intensifying competition in internet communication technology
  • Risk of market share loss in regional markets to new entrants
  • Declining demand due to population decrease and shrinking regional economy
  • Risk of infrastructure damage from natural disasters
  • Profit instability due to fluctuations in energy resource prices
  • Increasing cyber security threats
  • Challenges in maintaining service quality amid labor shortages in nursing care market
  • Risk of failing to keep up with technological innovations
  • Ripple effects from economic stagnation due to COVID-19 and similar events

Innovations

2024: DX Promotion for Enhanced Business Efficiency

Overview
Completely renewed IT systems to promote business digitalization and improve customer response efficiency.
Impact
30% reduction in administrative processing time, improved customer satisfaction

2023: Expansion of Smart Meter Deployment

Overview
Accelerated deployment of smart meters in LP gas supply facilities to enable remote monitoring.
Impact
20% reduction in meter reading costs, reduced risk of unpaid bills

2022: Strengthening High-Speed Fiber Optic Network Development

Overview
Initiated reinforcement of fiber optic infrastructure in service areas including the Tokyo metropolitan area.
Impact
Increased new customer acquisition through provision of high-speed communication environment

2021: Launch of Nursing Care-Related IT Services

Overview
Developed and provided IT solutions to support business efficiency in nursing care sites.
Impact
Contributes to improved operational efficiency in customer facilities

2020: Advancement of Renewable Energy Business

Overview
Promoted equipment investments and business development for environmentally responsive energy provision.
Impact
Expanded orders from environmentally conscious customers

Sustainability

  • Promoting support for low-carbon fuel introduction in LP gas business
  • Expanding adoption of energy-saving equipment in communications business
  • Active participation in environmental protection activities for local communities
  • Setting targets to improve renewable energy utilization rate
  • Strengthening management of environmental and social risks in supply chain
  • Improving transparency through CSR reports
  • Promoting green electricity plans in electricity sales
  • Implementing employee environmental awareness education programs
  • Promoting waste reduction and recycling
  • Supporting regional cleanup activities and environmental events
  • Strengthening energy supply functions during disasters
  • Promoting development of sustainable products and services