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Introduction

ManagementMessage

How We Create Value

Invisible
AssetsCompass2030
Vision and Strategy

CorporateGovernance

TCFDBusiness
Overview

Financial Data

Medium-Term Management Plan

Tokyo Gas Group FY2020 - 2022

Medium-Term
Management Plan
Overview of the Medium-Term
Management Plan

We will strive to
1 Implement cost structure reform
2 Continue the digital transformation (DX)*
3 Build a flexible organization towards
changesin order to change the revenue andexpenditure structure, create resources forfuture growth and also strengthen ourbusiness foundation.

3 challenges ofCompass2030

Key Strategies
Key Strategy 1Key Strategy 4

Shaping ofNet-Zero CO2Offer solutions that
optimize natural gas
and renewableenergies, and seek
new technologies that
hold promise for thefuture.

From the Tokyo metropolitan area to otherparts of Japan and to other countries

In preparation for future growth andexpansion, we will establish thefollowing as key strategies:
1 Evolution of customer solutions
2 Expansion of LNG business3 Acceleration of overseas business4 Shaping of Net-Zero CO 2This Medium-Term Management Plan has been established to enable
us to work to make steady progress and to reinforce the foundationsof our business for future growth and expansion in the three-year
period starting in FY2020, despite the recent difficult circumstances.

Evolution of customer solutions

Provide energy and services based on a businessmodel that fuses digital and physical operations.

Key Strategy 2

Expansion of LNG business

Use assets to provide LNG with increased value as a product toutility and other customers both at home and abroad.

Key Strategy 3

Acceleration of overseas business

Utilize accumulated strengths and achievements to provide
customers in other parts of Asia and elsewhere with solutionsaimed at achieving effective use of natural gas.

Challenge 1

Leadership inthe effort toachieve
Net-Zero CO2

Challenge 2

Establishment ofa value
co-creation
ecosystem

Challenge 3

Strengthening of business foundation* DX: Digital transformation. The use of data and digital technologies totransform products, services and business models based on customer
and societal needs, and also transform work operations themselves aswell as organizations, processes, and corporate culture and climate.

Strengthening of businessfoundation 1

Strengthening of businessfoundation 2

Strengthening of businessfoundation 3

Implementation of coststructure reformContinuationof DX*

Establishment of aflexible organization
towards changes

Tokyo Gas Integrated Report 2021
25

Transformation ofthe LNG valuechainBack To Contents

Introduction

ManagementMessage

How We Create Value

Invisible
AssetsCompass2030
Vision and Strategy

TCFD

Corporate
GovernanceBusiness
Overview

Financial Data

Medium-Term Management Plan

Key figures

We will achieve operating profits + equity method income of JPY 140.0 billion in FY2022 through a balance between cost
structure reform (primarily in the gas business), the expansion of electricity, solutions, etc., and investment in growth.

Project portfolio composition:
Operating profit + Equity method income
Overseas* 1Solutions, etc*2
Energy*3 (Gas + Power)

Supplementary reference

25%
5%

12%
36%

28%

25%

59%

60%

50%

FY2020 results

FY2022

Management Guidelines andkey figures in Compass2030

KGI
Operating profit +Equity method income

JPY 79.1 billion

JPY 140.0 billion

1.9%

Approx. 4%

Approx. JPY 200.0 billion

ROA

Approx. 8%

D/E ratio

0.92

Approx. 0.9

12.31 million

14.80 million

20.00 million

18.20 million tons

17.00 million tons

20.00 million tonsJPY 3.8 billion

JPY 16.0 billion-Contribution to CO 2 emissions reduction-6.68 million tons

-6.50 million tons

-10.00 million tons

Renewable power source transaction
volume (as of the end of FY)

1.383 million kW

2.00 million kW

5.00 million kW

Cost structure reform-JPY 12.0 billion-JPY 30.0 billion(as compared to FY2013 levels)(compared to FY2019)*1 Overseas: All overseas business *2 Solutions, etc.: Energy-related, real estate, other*3 Energy: Gas and electricity business in JapanTokyo Gas Integrated Report 2021
26

All segments
JPY 79.1billion*2

Gas
JPY 88.4billion

Electricity
JPY 8.6 billion

FY2022targets*3

Real estate
JPY 15.0 billion
Total for segment
JPY 140.0billion*2

Gas
JPY 108.0billion

Electricity
JPY 20.0 billion

KPI

Segment profit from Overseas Business

Overseas
JPY 3.8 billion

Overseas
JPY 16.0 billion

4.3%

Natural gas transaction volume

Energy-related
JPY 17.0 billion

Energy-related
JPY 16.0 billion

ROE

FY2020results* 1

Real estate
JPY 7.5 billion

OthersJPY 10.0 billion

Financial indicators

No. of customer accounts (as of the end of FY)

OthersJPY 3.8 billion

Profit planning by segment-Segment

Main activities

Gas

Factor in increased depreciation costs andintensified competition while carrying out
drastic cost structure reform and boosting
LNG sales (trading).

Electricity

Achieve a balance between reducing
marketing costs and increasing the numberof accounts.

Overseas

Growth of upstream, midstream anddownstream projects, primarily in NorthAmerica.

Energy-related

Promote cost structure reform including
making services for profit.

Real estate

Take into account the full-fledged start ofthe Tamachi ProjectOthers

Promote cost structure reform and create
profitability of M&A.

1.Frame in FY2020: Oil price $43.35/bbl, Exchange rate ¥106.1/$
2.Including consolidation adjustment
3.Anticipated frame for FY2022: Oil price $60/bbl, Exchange rate ¥110/$

Back To Contents

Introduction

Management
Message

How We Create Value

Invisible
AssetsCompass2030
Vision and Strategy

TCFD

Corporate
GovernanceBusiness
Overview

Financial Data

Medium-Term Management Plan

UpdateKey Strategy 1

Key Strategy 2

Evolution of customer solutions

Provide solutions for problems incustomers’ daily lives
Improve value of services provided manually
We have expanded the range of services to plumbing,in which customers often experience problems, inaddition to gas equipment. We plan to expand
services to housekeeping and housework support.

Expansion of LNG business

Diversify energy services andexpand service areas

Established a new LNG trading
company (Sep. 2020)
Diversify energy services and expand
service areas
We will offer services that facilitate introduction ofrenewable energy to a broad range of customers,
including factory, detached house, condominium
and building customers through a third-party
ownership model* for solar power generation.

Formed Strategic Alliance with UK-based
Octopus Energy
Tokyo Gas agreed to invest in Octopus Energy
Group Limited, a rapidly growing company in theU.K. market, and to establish a joint venturecompany in Japan.
We plan to realize a value of new customer
experience by leveraging Octopus Energy’s digitaltechnology and customer service know-how, andproviding electricity rate and service menu tailoredto needs of each customer. A new business model
will be created with customers, regardless of areasfrom fall 2021.

Launched optional services for electricity equipment and plumbing in the“Special Support For Gas Appliances” program (Oct. 2020)

Improve convenience by leveraging digitaltools
We will improve customer satisfaction byaccumulating and analyzing customer data to
improve work quality, reduce customers’ hassle andsave time.
Specific examples

Trials in FY2020

For requests of repairs, we analyze and forecast
the necessary work from the information received
to improve the completion rate in one visit.
We obtain and aggregate the results of service
users’ recommendation assessment (scale of 1 to11) on a timely basis and utilize them to improve
workers’ skills and service specifications.

Tokyo Gas established TG Global Trading Co., Ltd., awholly owned subsidiary engaged in the trading ofLNG.The company aims to expand the LNG tradingbusiness by maximizing and optimizing assets (storagetanks, LNG vessels and LNG sales and purchaseagreements) owned by the Tokyo Gas Group.

Launched Hinatao Solar, a service for condominiums and buildings(Oct. 2020).
*The Tokyo Gas Group installs solar power generation equipment on the roofof customers’ buildings or in their premises and supplies the generated electricity to those customers

KPI for 2022

KPI for 2022

Total customer accounts

Electricity customer accounts(Gas/electricity/service contracts in total)

12.31 million

3.8 million

14.80 million

2.7 million

FY2022 KPI

FY2020

FY2020

FY2022 KPINatural gas transaction volume
18.2 million tons

17.0 million tons

FY2020

FY2022 KPI

Reason for setting this KPI

Reason for setting this KPIThis KPI has been set as an indicator to measure the effects of our efforts to maximize our customer base at an
early stage in order to ensure stable profit in the gas/electricity/service business.

This KPI has been set as an indicator to quantify theexpansion of business with LNG as a commodity,including LNG trading and the overseas LNG
business, in addition to domestic gas sales.

Tokyo Gas Integrated Report 2021
27

Back To Contents

Introduction

Management
Message

How We Create Value

Invisible
AssetsCompass2030
Vision and Strategy

Corporate
Governance

TCFD

Business
Overview

Financial Data

Medium-Term Management Plan

Key Strategy 3

Strengthening of business foundation 1

Key Strategy 4Implementation of cost
structure reform

Acceleration of overseas business

Shaping of Net-Zero CO2

Acquired tight sand assets in the U.S.A.
and a majority interest in Castleton
Resources LLC (CR) (July 2020)

Expanded use of renewable energy power sources

CR, an upstream gas company in Texas in which
Tokyo Gas America Ltd. has a stake, has decided toacquire gas assets in Louisiana. Tokyo Gas took amajority interest in CR. (CR was renamed TG
Natural Resources in Nov. 2020.)

KPI for 2022

We have obtained renewable energy power sources
at a speed that outpaces our plan through large
investments in solar power generation in the U.S.A.
and wood pellet biomass power generation inJapan.
To promote the development of floating
offshore wind power in Japan and abroad, we are
obtaining the necessary technologies, such as byleveraging the floating system technology
developed and owned by Principle Power, Inc. ofthe U.S.A. (invested in May 2020).
We will aim to further acquire power sources
and roll out business while assessing energy
policies and economic trends.

In addition to reductions in fees andconsignment fees resulting from a review ofthe business model and in repair and otherexpenses stemming from a review of in-house
criteria, expenses in indirect divisions werereduced by work process reforms, which led tothe improvement in efficiency.

Photo courtesy of Principle Power. Artist: DOCK90

FeatureP.09

Progress and highlights of the Medium-termManagement PlanKPI for 2022

Overseas segment profit¥16.0 billion

CO2

KPI for 2022

Contribution to CO 2 emissions
reduction

6.68 million tons

6.50 million tons

Renewable powersource transaction
volumeNatural gas
transaction volume

2.00 million kW 18.2 million
1.383 million kWtons

17.0 million tons
¥12.0 billion
reduction¥3.8 billion
FY2020

FY2022 KPI

FY2020

FY2022 KPI

FY2020

FY2022 KPI

Cost structure reform

FY2020

FY2022 KPI

30.0 billion reduction¥

FY2022 KPI* Domestic and international, including
purchases

Reason for setting this KPI

Reason for setting this KPI

Reason for setting this KPI

Reason for setting this KPIThis KPI has been set as an indicator to measure thegrowth of our overseas business, which drives future
profit, toward its target.

This KPI has been set as an indicator tocontinuously measure outcomes from CO 2
emissions reduction contributions, including
those from customers, through expanded
effective use of natural gas, increases in thescale of use of renewable energy, etc.

This KPI has been set as an indicator to quantify the increased
use of renewable energy power sources and businessexpansion.

This KPI has been set as an indicator to measure
the effects of our efforts to drastically review
operations and their structure and create resources
for growth to be allocated to immediate profit
contribution and key strategies.

Tokyo Gas Integrated Report 2021
28

* Including overseas business

FY2020* As compared to FY2013 levels, including contribution atcustomer site

* Compared to FY2019