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Introduction

Management
Message

How We Create Value

Compass2030
Vision and Strategy

Invisible
AssetsCorporateGovernance

TCFD

Business
Overview

Financial Data

10-Year Consolidated
Financial Highlights

10-Year Consolidated Financial Highlights*1

2012.32013.32014.32015.32016.32017.32018.32019.32020.32021.3

1,754,257

1,915,639

2,112,117

2,292,548

1,884,656

1,587,085

1,777,344

1,962,308

1,925,235

1,765,146

Operating Profit (¥ million)

77,075

145,633

166,044

171,753

192,008

58,365

116,30293,704

101,418

77,675

Operating Profit Margin (%)

4.39

7.60

7.86

7.49

10.19

3.68

6.54

4.78

5.27

4.40

Ordinary Profit (¥ million)

75,620147,453

159,613

168,169

188,80955,688111,546

89,386102,645

70,500

Profit attributable to owners of parent (¥ million)

46,060101,678

108,451

95,828111,936

53,13474,98784,55543,29349,505Equity (¥ million)

839,166

927,634

1,011,787

1,069,515

1,100,271

1,101,498

1,136,027

1,159,055

1,147,747

1,153,813

1,863,885

1,992,403

2,176,816

2,257,662

2,251,518

2,230,269

2,334,316

2,428,1492,539,919

2,738,348

Interest-bearing Debt (¥ million)

625,830

642,550

713,823

730,739715,769

713,596

724,940

803,216

905,066

1,065,988

Operating Cash Flow (¥ million)

194,565

240,448

248,831237,680

257,122

217,439

240,328

246,436

213,171229,315

Free Cash Flow (¥ million)

48,15256,651827

13,08425,08914,081

31,58322,655(13,887)(17,116)

EBITDA (¥ million)

225,580

284,403

306,424

313,605

337,194

222,670

281,643

255,585

271,296

257,485

Capital Expenditure (¥ million)

146,413

183,797

248,004

224,596

232,033

203,358

208,745

223,781

227,058

246,431

Depreciation (¥ million)*2

148,505

138,770

140,380

141,852

145,187

164,305

165,342

161,881

169,878

179,810

EPS (Earnings per Share) (¥)

17.70

39.52

43.10

39.15

46.68

23.02

164.12*3

187.6097.86

112.26

BPS (Book Value per Share) (¥)

324.67360.70402.91438.28460.35479.742,487.58*3

2,575.99

2,602.53

2,616.37

2,590,715

2,577,919

2,517,551

2,446,778

2,396,778

2,302,856

458,073*3

451,356

442,436

442,4369101010111155*3606060

2.74

2.91

2.59

2.34

2.42

2.29

2.25

2.35

2.29

2.30

Net Sales (¥ million)

Total Assets (¥ million)

Number of Issued Shares (Common Stock) (thousands of shares)
Dividend per Share (¥)
DOE (Dividends on Equity) (%)

Notes: *1 The financial information contained in this integrated report is based on annual securities report. However, it has not been audited by Audit firms etc.
*2 Depreciation includes amortization of long-term prepaid expenses.
*3 The Company carried out a share consolidation at a ratio of 5 common shares to 1 on October 1, 2017.
The dividend per share of ¥55.0 is calculated on the post-consolidation basis (the interim dividend of ¥5.50 per share before the share consolidation and the year-end dividend of ¥27.50 per share after the share consolidation).

Tokyo Gas Integrated Report 2021
58

Back To Contents

Introduction

Management
Message

How We Create Value

Compass2030
Vision and Strategy

Invisible
AssetsCorporate
Governance

TCFD

Business
Overview

Financial Data

10-Year Consolidated
Financial Highlights

2012.32013.32014.32015.32016.32017.32018.32019.32020.32021.3

Payout Ratio (%)

50.85

25.30

23.20

25.55

23.57

47.79

33.51

31.98

61.31

53.45

Total Payout Ratio (%)

61.36

60.70

60.00

60.80

60.10

60.71

60.17

60.31

61.00

60.12

Current Ratio (%)

156.9

162.2

156.7

150.6

155.5

142.7

135.6

156.0

152.0

132.7

D/E (Debt-Equity) Ratio (times)

0.75

0.69

0.71

0.68

0.65

0.65

0.64

0.69

0.79

0.92

Equity Ratio (%)

45.0

46.6

46.5

47.4

48.9

49.4

48.7

47.7

45.2

42.1

ROE (Return on Equity) (%)

5.4

11.5

11.2

9.2

10.34.8

6.7

7.4

3.8

4.3

ROA (Return on Assets) (%)

2.5

5.3

5.2

4.3

5.0

2.4

3.3

3.6

1.7

1.9

Total Asset Turnover (times)

0.95

0.99

1.01

1.03

0.84

0.71

0.78

0.82

0.78

0.67

WACC (%)

3.1

3.2

3.2

3.6

3.4

3.0

3.1

3.0

2.7

2.6

Number of city gas retail customers (thousand)

9,615.4

9,721.1

9,844.8

9,982.3

10,125.7

10,269.4

10,209.0

9,821.0

9,129.0

8,863.0

Gas sales volume (million m3)

15,19015,39014,735

15,541

15,43615,720

15,56815,19813,855

12,99015,833

16,741

17,22518,36018,587

19,05319,052

18,397

17,666

17,577

-----

635

1,105

1,742

2,350

2,717

8.27

9.98

9.71

10.61

10.96

12.65

14.66

15.48

20.60

24.76

Gas Sales Volume, Gas Volume used in-house*4
Number of electricity retail customers (thousand)Electric power sales volume (billion kWh)

*4: It is the amount that added self-consuming volume (excluded volume for Nijio) to a Consolidated gas sales volumeComputations
Operating Cash Flow = Profit attributable to owners of parent + Amortization of Longterm Prepaid Expenses + Depreciation
Free Cash Flow = Profit attributable to owners of parent + Amortization of Long-term
Prepaid Expenses + Depreciation – Capital Expenditure
Current Ratio = Current Assets (year-end) / Current Liabilities (year-end) x 100
Debt-Equity Ratio = Interest-bearing Debt (year-end) / Equity (year-end)

WACC calculation data (fiscal 2020 actual)
Cost of interest-bearing debt: Real interest rate of 0.75% (after tax)
Cost of shareholders’ equity
Risk-free rate: 10-year JGB yield of -0.035%
Risk premium: 5.5%, Beta coefficient of 0.75

Equity Ratio = Equity (year-end) / Total Assets (year-end) x 100
Total Asset Turnover = Net Sales / Total Assets (average)

Tokyo Gas Integrated Report 2021
59

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Introduction

Management
Message

How We Create Value

Compass2030
Vision and Strategy

Invisible
Assets

TCFD

Corporate
GovernanceBusiness
Overview

Financial Data

Consolidated Balance Sheets

Consolidated Balance sheets(Million yen)2020.3.31(Million yen)2021.3.31

2020.3.31

AssetsLiabilities

Non-current assets

Non-current liabilities

Property, plant and equipment

2021.3.31

Bonds payable

404,998474,998

Production facilities

224,515

231,177

Long-term borrowings

429,541

458,881Distribution facilities

548,095

594,662

Deferred tax liabilities

18,531

24,269Service and maintenance facilities

48,492

15,992Retirement benefit liability

71,97658,416

Other facilities

475,249

564,495

Provision for gas holder repairs

3,122

3,172

316

316

Provision for safety measures

593

349

162,862

89,283

Provision for appliance warranties

12,985

10,843

1,459,532

1,495,927

Provision for point card certificates

1,000

1,635

Asset retirement obligations

14,424

23,313Inactive facilities
Construction in progress
Total property, plant and equipment
Intangible assets

2,056

5,320

Other noncurrent liabilities

53,501

89,188Other intangible assets

154,066

290,316

Total non-current liabilities

1,010,676

1,145,067

Total intangible assets

156,123

295,637

Current portion of non-current liabilities

54,428

108,704

Investment securities

216,052

230,782

Notes and accounts payable-trade78,59384,265Long-term loans receivable

50,61557,279

Short-term borrowings

6,507

5,706

29114

Income taxes payable

29,708

11,710

Deferred tax assets

49,13247,368Other current liabilities

200,865

204,623

Other investments

46,40760,814

Total current liabilities

370,104

415,010

(405)

(301)

1,380,780

1,560,077

141,844

Goodwill

Current liabilities

Investments and other assets

Retirement benefit asset

Allowance for doubtful accounts
Total investments and other assets

Total liabilities

361,831

396,057

1,977,487

2,187,623

Shareholders’ equity
Share capital

141,844

Cash and deposits

151,288

157,881

Capital surplus

2,0671,145

Notes and accounts receivable-trade

221,123

218,985

Retained earnings

967,718

990,762

Lease receivables and investments in leases

20,363

19,618Treasury shares

–

1,210

Total shareholders’ equity

Total non-current assets

Net assets

Current assets

Securities(3,875)(3,907)

1,107,754

1,129,845

Merchandise and finished goods

1,905

1,980

Work in process

11,868

11,595

Valuation difference on available-for-sale securities

15,84322,990Raw materials and supplies

64,703

46,464

Deferred gains or losses on hedges

1,444(11,240)

Other current assets

91,74893,848Foreign currency translation adjustment

22,412

4,322(570)(857)

Remeasurements of defined benefit plans

562,431550,725

2,539,919

2,738,348

Allowance for doubtful accounts
Total current assets
Total assets

Accumulated other comprehensive income

Total accumulated other comprehensive income
Non-controlling interests

7,895

39,992

23,968

11,391

24,457

Total net assets

1,159,138

1,178,271

Total liabilities and net assets

2,539,919

2,738,348

Tokyo Gas Integrated Report 2021
60292

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IntroductionManagementMessage

How We Create Value

Compass2030
Vision and Strategy

Invisible
AssetsConsolidated Statements of Income

CorporateGovernanceBusinessOverview(Million yen)

2019.4.1-2020.3.31

2020.4.1-2021.3.31

Net sales

1,925,235

1,765,146

ProfitCost of sales

1,344,171

1,212,624

Other comprehensive income

Gross profit

581,064552,522

Valuation difference on available-for-sale securities

Selling, general and administrative expenses

Deferred gains or losses on hedges

Financial Data

Consolidated Statements of Income
Consolidated Statements ofComprehensive Income

Consolidated Statements ofComprehensive Income(Million yen)

2019.4.1-2020.3.31

TCFD

43,4772020.4.1-2021.3.31

50,471(6,878)

7,178

(850)

(10,014)

Supply and sales expenses

408,730

410,167

Foreign currency translation adjustment(1,916)(14,869)

General and administrative expenses

70,91564,679Total selling, general and administrative expenses

479,645474,846

Remeasurements of defined benefit plans, net of tax

6,150

7,751

101,418

77,675178(6,259)Interest income

2,330

1,586

Comprehensive income

Dividend income

5,433

2,398

Comprehensive income attributable to

Share of profit of entities accounted for using equity method

5,211

1,482

Comprehensive income attributable to owners of parent

100

7,979

Miscellaneous income

7,352

7,757

Comprehensive income attributable to non-controllinginterests

Total non-operating income

20,42921,204

Interest expenses

11,412

12,629Loss on derivatives

1,174

9,373

Miscellaneous expenses

6,614

6,376

Total non-operating expenses

19,202

28,379102,645

70,500Operating profit

Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

Non-operating income

Gain on derivatives

Non-operating expenses

Ordinary profit
Extraordinary income
Gain on sale of non-current assets

–

3,114

Gain on sale of investment securities

–

5,283

Gain on bargain purchase

–

2,008

Gain on settlement of contract

11,627–

Total extraordinary income

11,627

10,406

Impairment losses

28,152

10,255

Loss on valuation of investment securities

18,643

4,466

Total extraordinary losses

46,796

14,722

Profit before income taxes

67,476

66,184

Income taxes-current

31,196

16,887

Income taxes-deferred(7,197)(1,175)

Total income taxes

23,99915,712

Profit43,47750,471

Extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent

18496643,29349,505

Tokyo Gas Integrated Report 2021
61(3,316)(16,212)

40,161

34,25940,14833,48012778

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Introduction

Management
Message

How We Create Value

Compass2030
Vision and Strategy

Invisible
Assets

TCFD

Corporate
GovernanceBusiness
Overview

Consolidated Statementsof Cash Flows

Consolidated Statements of Cash Flows(Million yen)

2019.4.1-2020.3.31

Cash flows from operating activities
Profit before income taxesDepreciation
Impairment losses
Amortization of long-term prepaid expenses
Loss on retirement of property, plant and equipment
Loss (gain) on sale of non-current assets
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) of derivatives
Gain on bargain purchase
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for appliance warranties
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Decrease (increase) in accounts receivable-other
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Purchase of securities
Purchase of investment securities
Proceeds from sale and redemption of investment
securities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of long-term prepaid expenses
Proceeds from sale of non-current assets
Payments for retirement of property, plant andequipment
Long-term loan advances
Proceeds from collection of long-term loans receivable
Net decrease (increase) in short-term loans receivable
Payments of guarantee deposits
Proceeds from refund of guarantee deposits
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Payments for acquisition of businesses
Other, net
Net cash provided by (used in) investing activities

Financial Data

(Million yen)2020.4.1-2021.3.31

67,476
165,615
28,152
4,263
2,164
244
(108)
18,643
1,073
–
5,206
(1,072)(7,763)
11,412

66,184
176,087
10,255
3,722
3,274(3,102)(5,283)
4,466
1,393(2,008)(2,918)(2,141)(3,984)
12,629(5,211)(1,482)

52,646
172
8,952
7,979
(1,619)(23,678)
334,549
14,510(11,087)(31,676)
306,296

5,126
18,6438,080(1,072)(6,242)
11,217
292,8447,843(12,630)(32,482)
255,574(55)–(23,989)(4,287)(1,200)(37,467)

1,916

16,573(177,664)(41,908)(2,183)282(172,652)(35,725)(2,456)
5,151

(36)

(1,043)(16,989)
4,853
530(2,709)1,855(11,831)
4,037(2,854)(6,957)
4,916(17,908)(32,579)

–

7,006

(393)
3,601
(270,798)(25,208)
667(295,911)2019.4.1-2020.3.31

Cash flows from financing activities
Repayments of lease obligations
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of bonds
Redemption of bonds
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents(2,414)51,035(35,981)
90,000(20,000)(131)(2,275)(27,839)(34,362)
23,171(26,449)(1,905)52,009(489)(5,088)Net increase (decrease) in cash and cash equivalents

58,1796,584

Cash and cash equivalents at beginning of period

93,032

151,218

68

151,218

157,811

Increase (decrease) in cash and cash equivalents resulting
from change in scope of consolidation
Cash and cash equivalents at end of periodTokyo Gas Integrated Report 2021
62(2,646)
71,542(43,390)
90,000(30,000)

2020.4.1-2021.3.31

Management
Message

Introduction

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How We Create Value

Compass2030
Vision and Strategy

Invisible
Assets

TCFD

Corporate
GovernanceBusiness
Overview

Financial Data

Delayed Impact of Gas
Rate Adjustment System

Delayed Impact of Gas Rate Adjustment System
Gas Rate Adjustment System’s Medium- to Long-Term Neutralizing Effect on
Crude Oil Price and Exchange Rate Formation
Gas prices are determined using the gas rate adjustment system. Through this system, average
raw material prices over a three-month period according to trade statistics are compared withthe raw material cost that is used as the standard (standard average raw material cost), and thegas rates are adjusted using a defined calculation method based on the differences. A time lagof four months on average (called a sliding time lag) exists between the payment of raw material

costs and the reflection of such changes in gas rates.
Consequently, fluctuations in crude oil prices and exchange rates may result in the underrecovery or over recovery of raw material costs if this lag cuts across a fiscal year, thereby
affecting income. Looking at the medium- to long-term, however, the gas rate adjustment
system has a neutralizing effect on the income impacts of fluctuations in raw material costs.

Timing of the Standard Average Raw Material Cost Calculation and Reflection in Gas Rates

How the Sliding Time Lag in Rates Works

Timing of standard average raw material cost calculation

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Dec.

Average rawmaterial price

Overrecovery

Under
recoveryAverage raw
material price

Average raw
material price

Average all Japan LNG price
Average raw material price reflected in gas rate
Reflection in gas rates

Jun.

Jul.

Aug.

FY N

The average raw material price over the past three months is calculated every month and thenreflected in the gas rate three months later.

Tokyo Gas Integrated Report 202163

FY N+1