April 28, 2021

Consolidated Financial Results Bulletin for the Fiscal Year Ended March 31, 2021
(J-GAAP)Tokyo Gas Co., Ltd.
Securities code:
9531(URL https://www.tokyo-gas.co.jp/IR/english/index.html)
Representative:
Mr. UCHIDA Takashi, President
Contact:
Mr. KOMORI Rikiya, Chief Manager,
Consolidated Settlements Sect.
General shareholders’ meeting schedule:
Scheduled date of the filing of securities report:
Scheduled date of the start of dividend payments:
Preparation of earnings presentation material (yes/no):
Holding of earnings announcement (yes/no):

Stock listings:
Tokyo Stock Exchange, Nagoya Stock Exchange
Location of head office: Tokyo
June 29, 2021
June 29, 2021
June 30, 2021
Yes
Yes (for institutional investors)(Amounts are rounded down to the nearest million yen)

1. Consolidated Performance for FY2020 ended March 31, 2021 (from April 1, 2020 to March 31, 2021)(Unit: million yen)(% of change from the corresponding period of previous year)(1) Consolidated Business Performance
Net sales

Operating profit

Ordinary profit

Profit attributable toowners of parent

FY2020 ended
Mar. 31, 2021

1,765,146-8.3%

77,675-23.4%

70,500-31.3%

49,50514.3%

FY2019 ended
Mar. 31, 2020

1,925,235-1.9%

101,418

8.2%

102,645

14.8%

43,293-48.8%

Note: Total comprehensive income
FY2020 ended March 31, 2021: 34,259 million yen (-14.7%)

Profit per share

Diluted profit
per share

FY2019 ended March 31, 2020: 40,161 million yen (-41.0%)

Ratio of profit toshareholders’ equity

Ratio ofordinary profit tototal assets

Ratio ofoperating profit to
net sales

FY2020 ended
Mar. 31, 2021

112.26 yen

—

4.3%

2.7%

4.4%

FY2019 ended
Mar. 31, 2020

97.86 yen

—

3.8%

4.1%

5.3%

Reference: Profit or loss on investment accounted for by equity method
FY2020 ended March 31, 2021: 1,482 million yen
FY2019 ended March 31, 2020: 5,211 million yen
Note: As provisional accounting treatments on business combinations were confirmed in the FY2020 ended March 31, 2021, the figures for
FY2019 ended March 31, 2020 reflect the confirmed details of the provisional accounting treatments.

(2) Consolidated Financial Position(Unit: million yen)
Total assets
2,738,348

As of Mar. 31, 2021

Total net assets
1,178,271

Equity ratio
42.1%

Net assets per share
2,616.37 yen

As of Mar. 31, 2020
2,539,919
1,159,138
45.2%
2,602.53 yen
Reference: Shareholders’ equity
As of March 31, 2021: 1,153,813 million yen
As of March 31, 2020: 1,147,747 million yen
Note: As provisional accounting treatments on business combinations were confirmed in the FY2020 ended March 31, 2021, the figures for
FY2019 ended March 31, 2020 reflect the confirmed details of the provisional accounting treatments.

(3) Consolidated Cash Flows(Unit: million yen)
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

FY2020 ended
Mar. 31, 2021

255,574-295,911

52,009157,811

FY2019 ended
Mar. 31, 2020

306,296-270,798

23,171

151,218

Note: As provisional accounting treatments on business combinations were confirmed in the FY2020 ended March 31, 2021, the figures for
FY2019 ended March 31, 2020 reflect the confirmed details of the provisional accounting treatments.

2. Dividend
Dividend per share (Unit: yen)
End of
1Q

End of2Q

End of3Q

End of4Q

Full-year

Total dividend
payments(Full-year)(Unit: million yen)

Payout ratio(Consolidated)

Dividend
on equity(Consolidated)

FY2019 ended
Mar. 31, 2020

—

30.00

—

30.00

60.00

26,460

61.3%

2.3%

FY2020 ended
Mar. 31, 2021

—

30.00

—

30.00

60.00

26,460

53.4%

2.3%

FY2021 ending
Mar. 31, 2022 (Forecast)

—

30.00

—

30.00

60.00

—

3. Consolidated Results Forecast for FY2021 ending March 31, 2022 (April 1, 2021 - March 31, 2022)(Unit: million yen)(% of change from the corresponding period of previous year)
Net sales
Full-year

1,816,000

2.9%Operating profit

Ordinary profit

87,00072,000

12.0%

2.1%

Profit attributable toowners of parent
52,000

5.0%

Profit per
share
117.91 yen*Notes(1) Significant changes in consolidated subsidiaries (changes in specified subsidiaries resulting in change of scope of
consolidation during the year) (yes/no): Yes
Newly included: 6 (Names) TG Natural Resources LLC, TGNR HoldCo LLC, TGNR RBLCo LLC,TGNR East Texas LLC, TGNR TVL LLC, Tokyo Gas United Kingdom Ltd.
Reference: Scope of consolidation and application of equity method
Number of consolidated subsidiaries: 107 (Increased by 26 companies and decreased by 1 company)
Number of subsidiaries and affiliates accounted for by equity method: 15 (Increased by 2 companies and decreased by 2
companies)(2) Change in accounting policies or estimates and retrospective restatements
1) Change in accounting policies in accordance with revision of accounting standards: No
2) Change in accounting policies other than item 1) above: No
3) Change in accounting estimates: No4) Retrospective restatements: No(3) Number of issued shares (common stock)(Unit: share)
1) Number of issued shares at end of
period (including treasury stock):

Mar. 31, 2021

442,436,059

Mar. 31, 2020

442,436,059

2) Number of shares of treasury stockat end of period:

Mar. 31, 2021

1,437,924

Mar. 31, 2020

1,424,746

3) Average number of shares during
period:Apr. 2020– Mar. 2021

441,005,584

Apr. 2019– Mar. 2020

442,379,702

(Reference)

1. Non-Consolidated Business Results for FY2020 ended March 31, 2021 (April 1, 2020 - March 31, 2021)(1) Non-Consolidated Business Performance(Unit: million yen)(% of change from the corresponding period of previous year)
Net sales

Operating profit

Ordinary profit

Net income

FY2020 ended
Mar. 31, 2021

1,612,911-9.8%

47,069-24.1%

46,764-31.6%

42,516-25.0%FY2019 ended
Mar. 31, 2020

1,787,975

1.1%

62,04426.8%

68,342

8.6%

56,703

5.6%

Profit per share

Diluted profit
per share

FY2020 ended
Mar. 31, 2021

96.41 yen—

FY2019 ended
Mar. 31, 2020

128.18 yen—(2) Non-Consolidated Financial Position(Unit: million yen)
Total assets

Total net assets

Equity ratio

Net assets per share

As of Mar. 31, 2021

2,110,568

805,000

38.1%

1,825.41 yen

As of Mar. 31, 2020

2,094,493

818,43339.1%

1,855.81 yen

Reference: Shareholders’ equity
As of March. 31, 2021: 805,000 million yen

As of March 31, 2020: 818,433 million yen

2. Non-Consolidated Results Forecast for FY2021 ending March 31, 2022 (April 1, 2021 - March 31, 2022)(Unit: million yen)(% of change from the corresponding period of previous year)
Net sales
Full-year

1,600,000-0.8%Operating profit

Ordinary profit

46,00040,000-2.3%-14.5%Net income
30,000-29.4%

Profit per
share
68.03 yen

* Quarterly review procedures by a certified public accountant or an audit firm do not apply to quarterly consolidated financial
results bulletins.
* Explanation related to appropriate use of results forecasts and other items warranting special mention
1. As the COVID-19 pandemic has not yet abated, consolidated and non-consolidated results forecasts include numerous
elements of uncertainty. Therefore, the forecasts are subject to drastic changes depending on future developments. For
details of the above forecasts, please refer to “1. Overview of Business Performance, etc. (2) Future outlook” on page 6 of
the Attachment.
2. The information related to this Financial Results will be posted on the Web site of the Company.

Contents of Attachment
I. Overview of Business Performance, etc. ................................................................................................................... 2(1)
Overview of business performance and financial position of FY2020 .................................................................... 2(2)
Future outlook ............................................................................................................................................................. 6
II. Group Companies ....................................................................................................................................................... 7
III. Basic Concept Regarding Selection of Accounting Standards ................................................................................ 7
IV. Consolidated Financial Statements and Main Notes ................................................................................................ 8(1)
Consolidated balance sheets ....................................................................................................................................... 8(2)
Consolidated statements of income and comprehensive income ........................................................................... 10(Consolidated statement of income) ......................................................................................................................... 10(Consolidated statement of comprehensive income) .............................................................................................. 11(3)
Consolidated statements of changes in net assets ................................................................................................... 12(4)
Consolidated statements of cash flows ................................................................................................................... 16(5)
Notes on consolidated financial statements ............................................................................................................. 181) (Note on going concerns’ premise) ........................................................................................................................... 182) (Additional information) ........................................................................................................................................... 183) (Segment information, etc.) ...................................................................................................................................... 184) (Per share information) ............................................................................................................................................. 215) (Material subsequent events) .................................................................................................................................... 22
V. Non-Consolidated Financial Statements ................................................................................................................. 24(1)
Balance sheets ............................................................................................................................................................ 24(2)Statements of income ................................................................................................................................................. 26

1

I.

Overview of Business Performance, etc.

(1) Overview of business performance and financial position of FY2020(Business performance of FY2020)
During the fiscal year under review, the Japanese economy remained plagued by a decline in companies’ capital
expenditure and consumer spending as well as a worsening employment environment caused by a decrease in corporate
earnings on the back of stagnant economic activities following the outbreak of the novel coronavirus (COVID-19).
While there are signs of a mild recovery, the outlook of the economy remains unclear, with new waves of the spread of
COVID-19 infections occurring intermittently.
Amid this economic climate, competition between energy operators in the energy industry as well as competition acrossindustry borders have intensified due to the full deregulation of retail gas sales in April 2017 that followed the fullderegulation of retail electric power sales in April 2016. The environment surrounding the energy business experienced
major changes, including decarbonization becoming a global trend. Against this backdrop, we actively undertook
various measures to enhance the added value we deliver to customers in Japan and abroad through the development of acomprehensive energy business and globalization.
The outbreak of COVID-19 has affected the Company in many ways. In the city gas business, although there was a risein residential demand as customers spent more time at home, there was a decline in commercial demand in the restaurant
and hotel sectors as well as a decline in industrial demand for some of the power generation customers due to a decreasein operation. In the electric power business, the outbreak boosted retail demand as customers spent more time at home,while it pushed down wholesale demand. In the overseas business, there was a deterioration in earnings due in part to adrop of selling prices in the LNG business, etc. in Australia and North America on the back of a global decline of market
prices. In the energy-related business, the COVID-19 outbreak caused a decline in sales volume of core gas equipment
products such as TES and the Ene-Farm home fuel cell system and a decrease in installation work due to a drop in thenumber of new installations. In the real estate business, the room occupancy rates of the hotel business saw a significant
decline.
In light of these economic conditions and changes in the business climate, consolidated net sales for the year underreview totaled ¥1,765.1 billion, a drop of 8.3% year on year and operating expenses came to ¥1,687.4 billion, a declineof 7.5% year on year.
Extrapolating from this performance, operating profit was ¥77.6 billion, a decrease of 23.4% year on year, and ordinary
profit totaled ¥70.5 billion, a drop of 31.3%. Profit attributable to owners of the parent came to ¥49.5 billion, a growth of
14.3% year on year. This reflected the posting of a ¥5.2 billion gain on sales of investment securities, a ¥3.1 billion gainon sales of non-current assets and a ¥2.0 billion gain on bargain purchase as extraordinary income, a ¥10.2 billion
impairment loss on the overseas upstream business, etc. and a ¥4.4 billion loss on valuation of investment securities as
extraordinary losses, and income taxes.
<Segment summary>1) Gas
The sales volume of the city gas business, which is the main business of the gas segment, was 12,990 million m 3 in thefiscal year under review, a decrease of 6.2% year on year. Breaking this down, residential demand was 3,207 million m3,
an increase of 2.7%, primarily due to a rise in demand as customers spent more time at home, despite a drop in thenumber of customers.
Commercial demand was 2,261 million m3, a decline of 9.4%, as customers in sectors such as restaurants and hotels
shortened business hours or voluntarily suspended business due to the COVID-19 outbreak.
Industrial demand was 5,787 million m3, a decline of 9.5%, mainly due to a decrease in sales volume to users dedicatedto power generation.
Supply to other utilities was 1,735 million m3, a fall of 5.6%, primarily due to a drop in customer demand.
Gas sales came to ¥1,146.7 billion, a decrease of ¥208.7 billion or 15.4% year on year, owing mainly to a decline in city
gas sales volume as well as a drop in gas unit price reflecting resource cost adjustments.
As a result of a drop in gas sales volume and a decrease in city gas resource costs due to a declining trend in crude oil
prices compared to the previous fiscal year, the overall operating expenses decreased ¥194.6 billion or 15.5%.
Consequently, segment profit totaled ¥88.4 billion, a decrease of ¥14.0 billion or 13.6% year on year.

2

<Consolidated City Gas Sales Volume for FY2020 Ended March 31, 2021>

City gas sales volume

FY2020FY2019Change% change
No. of customers for cityThousands
8,863
9,129
-266
-2.9
gas retail sales
Thousands
No. of customers (meters)
12,083
11,954129
1.1
Residential
3,207
3,124
83
2.7
Mil. m3
3
Commercial
2,261
2,497
-236
-9.4
Mil. mIndustrial
5,787
6,397
-610
-9.5
Mil. m3
3
Subtotal
8,049
8,894
-845
-9.5
Mil. mSupplies to other utilities
1,735
1,837
-102
-5.6
Mil. m3
3
Total
12,99013,855-865-6.2
Mil. mAverage temperature
°C
16.5
16.7
-0.2
—
Notes:
1. No. of customers for city gas retail sales indicates the number of billed customers for city gas retail sales.
2. No. of customers (meters) indicates the number of meters that includes inactive meters and meters for gas supply
from other retail companies.
3. “Commercial” indicates sales to commercial, public and medical institutions.
4. City gas sales volumes are on the basis of 45MJ/m3.
5. Average temperature is the average temperature during the period of use by each customer (from date of initialmonth’s meter reading to final month’s meter reading).
The aforementioned notes also apply to the relevant tables.
<Foreign Exchange Rate and Crude Oil Price>¥/$ rate

FY2020106.10FY2019108.71

Crude oilprice($/bbl)Change-2.61

FY202043.35

FY201967.76

Change-24.41

2) Electric power
Sales totaled ¥395.9 billion, an increase of ¥37.3 billion or 10.4% year on year. Operating expenses rose ¥38.7 billion or
11.1%.
Reflecting this, segment profit totaled ¥8.6 billion, an decrease of ¥1.4 billion or 13.5% year on year.
<Consolidated Electric Power Sales Volume for FY2020 Ended March 31, 2021>
FY2020FY2019Change% change
No. of customers for cityThousands
2,717
2,350
367
15.6
gas retail sales
Electric Retailmillion kWh
10,482
8,522
1,960
23.0
power
Wholesale etc. million kWh
14,27912,082
2,197
18.2
sales
million kWh
24,761
20,604
4,157
20.2
volume Total
Note: No. of customers for electric power retail sales indicates the number of billed customers for electric power retailsales3) Overseas
Sales totaled ¥45.9 billion, an increase of ¥2.0 billion or 4.4% year on year. Operating expenses rose ¥7.2 billion or
20.2%.
Accordingly, segment profit was ¥3.8 billion, a decline of ¥9.4 billion or 70.6% year on year, as a result of a decrease inequity-method investment gains.
A gain on bargain purchase of 1.9 billion yen has been posted as extraordinary income related to the overseas upstream
business, and an impairment loss of 9.4 billion yen and a loss on valuation of investment securities of 4.4 billion yen has
been posted as extraordinary losses.
4) Energy-related
Sales totaled ¥339.4 billion, a decrease of ¥12.5 billion or 3.5% year on year. Operating expenses declined ¥12.5 billion
or 3.7%.
3

Reflecting this, segment profit was ¥17.0 billion, roughly the same as the previous fiscal year.
5) Real estate
Sales totaled ¥48.4 billion, an increase of ¥3.9 billion or 8.7% year on year. Operating expenses rose ¥6.5 billion or
18.3%.
Reflecting this, segment profit was ¥7.5 billion, a decline of ¥2.1 billion or 22.2% year on year, despite an increase inequity-method investment gains.
6) Others
Sales totaled ¥110.4 billion, a decrease of ¥12.8 billion or 10.4% year on year. Operating expenses decreased ¥10.8
billion or 9.2%.
Reflecting this, segment profit was ¥3.8 billion, a decline of ¥1.9 billion or 34.0% year on year, owing to a decrease inequity-method investment gains.
<Summary by segment>(Unit: hundred million yen )
Gas

Sales

Operatingexpenses

Segment
profitFY2020(% of total)
FY2019(% of total)
Amount of change(Rate of change)
FY2020(% of total)
FY2019(% of total)
Amount of change(Rate of change)
FY2020(% of total)
FY2019(% of total)
Amount of change(Rate of change)

11,467(54.9%)
13,554(59.5%)-2,087-15.4%
10,583(54.0%)
12,529(58.9%)-1,946-15.5%
884(68.4%)
1,024(64.8%)-140-13.6%

Electric
power
3,959
(19.0%)
3,586(15.7%)
373
10.4%
3,872
(19.8%)
3,485(16.4%)
387
11.1%
86
(6.7%)
100(6.4%)-14-13.5%

Overseas459(2.2%)
439(1.9%)
20
4.4%
425(2.2%)
353(1.7%)
72
20.2%
38(3.0%)
132(8.4%)-94-70.6%

Energyrelated
3,394(16.3%)
3,519(15.5%)
-125
-3.5%
3,224
(16.5%)
3,349(15.8%)
-125
-3.7%
170
(13.2%)
169(10.7%)
1
0.3%

Real estate484(2.3%)
445(2.0%)
398.7%
418(2.1%)
353(1.7%)
65
18.3%
75(5.8%)
96(6.1%)-21-22.2%

Others
1,104(5.3%)
1,232(5.4%)-128-10.4%
1,066(5.4%)
1,174(5.5%)
-108
-9.2%
38
(2.9%)
57(3.6%)-19-34.0%

Note: Figures for sales include internal transactions. Figures for operating expenses do not include expenses that cannot
be allocated to specific segments. Figures for segment profit are adjust against the amount based on operating
profit in the consolidated financial statements plus or minus equity-method investment gains or losses.

4

(Financial position in FY2020)
1) Situation of assets, debt and net assets
Assets as of March 31, 2021 totaled ¥2,738.3 billion, an increase of ¥198.4 billion versus March 31, 2020, primarily
attributable to an increase in other intangible assets (¥136.3 billion) due in part to TG Natural Resources becoming a
consolidated subsidiary from its previous status as an affiliate accounted for by equity method and an increase in theoutstanding balances for other facilities (¥89.2 billion).
Liabilities stood at ¥1,560.0 billion, an increase of ¥179.2 billion. This was primarily attributable to an increase in theoutstanding balance for interest-bearing debt (¥160.9 billion) due to an increase in corporate bonds and an increase in
the outstanding balance for long-term loans payable partly as TG Natural Resources LLC became a consolidated
subsidiary.
Net assets totaled ¥1,178.2 billion, a rise of ¥19.1 billion. Although net assets were negatively impacted by factors
including the distribution of capital surplus (-¥26.4 billion), there was an overall increase attributable to a rise inshareholders’ equity mainly thanks to the posting of profit attributable to the owners of the parent (¥49.5 billion) and anincrease in non-controlling interests (¥13.0 billion) partly as TG Natural Resources LLC became a consolidated
subsidiary.
In contrast with the growth rate of shareholders’ equity, the growth rate of net worth (equity capital) (total shareholders’equity + accumulated other comprehensive income) was smaller. As a result, the shareholders’ equity ratio was 42.1%
on March 31, 2021, down 3.1 points from March 31, 2020.
<Capital expenditure>
FY2020Tokyo Gas

Production facilities
Supply facilities
Operational facilities, etc.
Total
Consolidated subsidiaries
Adjustments
Total

111
959
383
1,454
1,043
-33
2,464

FY2019
101
1,057
482
1,642
677
-48
2,270

(Unit: hundred million yen)
Change% change
10
9.3
-98
-9.3
-99
-20.5
-188
-11.4
366
54.1
15
—
194
8.5

FY20202,555-2,959
520
-50
65
1,512
1,578

(Unit: hundred million yen)
FY2019Change3,062-507-2,707
-252
231
289
-4
-46
581
-516
930
582
1,512
66

2) Situation of cash flow

Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of yeara) Cash flow from operating activities
Cash and cash equivalents obtained as a result of operating activities totaled ¥255.5 billion. This was primarily
attributable to the posting of income before income taxes (¥66.1 billion) and depreciation and amortization (¥176.0
billion), despite income taxes paid (-¥32.4 billion) and interest paid (-¥12.6 billion).
b) Cash flow from investing activities
Cash and cash equivalents used in investing activities totaled ¥295.9 billion. Although there were proceeds from the saleand redemption of investment securities (¥16.5 billion), there was a cash outflow due to the purchase of property, plantand equipment (-¥172.6 billion) and the purchase of intangible assets (-¥35.7 billion) associated with capital
expenditures, the purchase of investment securities (-¥37.4 billion), the purchase of subsidiary shares that accompany
changes in the scope of consolidation owing in part to Ichihara Yawatafuto Biomass Power GK and Fushiki Manyofuto
Biomass Power GK becoming consolidated subsidiaries(-¥32.5 billion), and to the transfer of business (-¥25.2 billion).
c) Cash flow from financing activities
Cash and cash equivalents obtained as a result of financing activities totaled ¥52.0 billion. Although there were
expenditures due to repayment of long-term loans payable (-¥35.9 billion), dividends payable (-¥26.4 billion), and bondredemption (-¥20.0 billion), cash and cash equivalents rose owing to proceeds from the issuance of bonds (¥90.0 billion)
and long-term loans payable (¥51.0 billion).
5(2) Future outlook
For FY2021, we forecast city gas sales volume of 12,054 million m3, a decline of 7.2% year on year. Although weestimate a recovery from the drop in commercial demand in the restaurant and hotel sectors, among others, we project a
decline in industrial and residential demand owing to a drop in demand from power generation customers, etc., and adying out of the effect of customers spending more time at home, respectively. Despite an expected increase in gas unit
price in tandem with resource cost adjustments, we expect city gas sales to fall ¥2.7 billion or 0.2% to ¥1,144.0 billion,
owing in part to a decline in city gas sales volume. Meanwhile, we estimate a rise in operating expense, mainlyreflecting higher resource costs, owing mainly to the impact from a rise in crude oil prices. In light of this, we expect
profit levels to decline. Electricity sales volume is likely to grow underpinned by an increase in the number of retailsales transactions, etc. In light of this, we expect profit levels to improve.
Taking these factors into account, we project consolidated net sales of ¥1,816.0 billion, a growth of ¥50.9 billion or
2.9% year on year, operating profit of ¥87.0 billion, an increase of ¥9.4 billion or 12.0%, ordinary profit of ¥72.0 billion,a rise of ¥1.5 billion or 2.1%, and profit attributable to owners of the parent of ¥52.0 billion, an expansion of ¥2.5 billion
or 5.0%.
The economic frame assumed for FY2021 is ¥105.00/$ for foreign exchange rate for the full-year, and $55.00/bbl for the
full-year for crude oil price.

a. Consolidated city gas sales volume forecast for FY2021
FY2021(Forecast)Mil. m3
3,129City gas Residential
sales
OthersMil. m3
8,925
volume Total
Mil. m3
12,054
Average temperature
°C
16.10

b. Consolidated electric power sales volume forecast for FY2021
FY2021(Forecast)
Total electric power
million kWh
26,640sales volume

FY2020(Results)
3,207
9,783
12,99016.50

FY2020(Results)

Change% change

-78
-858
-936
-0.40

-2.4
-8.8
-7.2
—

Change24,761% change

1,879

7.6

c. Consolidated earnings forecast for FY2021(Unit: hundred million yen)
Net sales
FY2021 (forecast)
FY2020 (results)
Change% change

18,16017,651509
2.9%

Gas sales

Other sales

11,44011,467
-27
-0.2%

6,720
6,183
537
8.7%

Operating profit

Ordinary profit

870
776
94
12.0%

720
705
15
2.1%

Profit attributableto owners of parent
520
495
25
5.0%

Note: Internal sales between segments are adjusted in the “Other sales” column.

< Foreign exchange rate and crude oil price forecast for FY2021>
FY2021
FY2020
Crude oil
Change(Forecast)(Results)¥/$ rate
price($/bbl)105.00106.10-1.10

6FY2021(Forecast)
55.00

FY2020(Results)
43.35

Change11.65

II. Group Companies<Scope of Consolidated Subsidiaries and Affiliates and Application of Equity Method>
1) The scope of consolidation- Newly included subsidiaries in scope of consolidation: 26 companies
TGES Sumaene service Co., Ltd. (due to an increase in significance), TG Global Trading Co., Ltd., TB Bio Energy Co.,
Ltd., Ichihara Yawatafuto Biomass Power GK, Fushiki Manyofuto Biomass Power GK, TG Aktina Holdings LLC, TG
Aktina Holdings 2 LLC, Ramsey Energy Holdings LLC, Hecate Energy Ramsey LLC, TG Aktina LLC, TG Aktina BR
Finance LLC, TG Aktina Energy LLC, TG Aktina TE Finance LLC, TG Natural Resources LLC, Sabine Valley
Pipeline LLC, Sabine Valley Holdings LLC, TGNR Management Services LLC, TGNR Management Holdings LLC,TGNR HoldCo LLC, TGNR Gulf Coast LLC, TGNR East Texas LLC, TGNR TVL LLC, TGNR NLA LLC, TGNR
RBLCo LLC, Tokyo Gas United Kingdom Ltd., PT TOKYO GAS INDONESIA (all have been newly added to thescope of consolidation)- Excluded: 1 company
Tokyo Gas Modeling Co., Ltd. (absorption-type merger)
2) Application of equity method- Included in the equity method: 2 companies
PT Energy Mina Abadi, PT SUPER ENERGY Tbk. (new application)- Excluded from the equity method: 2 companies
Castleton Resources LLC (became a consolidated subsidiary from its previous status as an affiliate accounted for byequity method and was renamed TG Natural Resources LLC), TTK Power, LLC (liquidation)
Information about other consolidated subsidiaries and affiliates are not disclosed because there are no significant
changes from articles of “business diagram” and “situation of subsidiaries and affiliates” in the latest securities report.
[filed on June 26, 2020]

III. Basic Concept Regarding Selection of Accounting Standards
The Tokyo Gas Group is considering application of IFRS in the future, taking into account the business circumstanceand influence by the application of IFRS.

7

ⅣConsolidated Financial Statements
Consolidated Balance Sheets(Million yen)
As of March 31,2020

As of March 31,2021

AssetsNon-current assets
Property, plant and equipment
Production facilities
Distribution facilities

224,515
548,095

231,177594,662

Service and maintenance facilities
Other facilities

48,492475,249

15,992564,495

Inactive facilities
Construction in progress

316
162,862316
89,283

1,459,532

1,495,927

Total property, plant and equipment
Intangible assets
Goodwill

2,056

5,320

Other intangible assets

154,066

290,316

Total intangible assets

156,123

295,637

Investments and other assets
Investment securities

216,052

230,782Long-term loans receivable
Retirement benefit asset

50,61529

57,279114

Deferred tax assets
Other investments

49,132
46,40747,36860,814

Allowance for doubtful accounts

-405

-301

Total investments and other assets

361,831

396,057

1,977,487

2,187,623

151,288

157,881

221,123
20,363218,985
19,618

Securities
Merchandise and finished goods

1,905

1,210
1,980

Work in process
Raw materials and supplies

11,86864,703

11,59546,464

Other current assets
Allowance for doubtful accounts

91,748-570

93,848-857

Total current assets

562,431550,725

2,539,919

2,738,348

Total non-current assets
Current assets
Cash and deposits
Notes and accounts receivable - trade
Lease receivables and investments in leases

Total assets

8

(Million yen)
As of March 31,2020

As of March 31,2021

Liabilities
Non-current liabilities
Bonds payable
Long-term borrowings

404,998
429,541474,998
458,881Deferred tax liabilities
Retirement benefit liability

18,531
71,97624,26958,416

Provision for gas holder repairs
Provision for safety measures

3,122
593

3,172
349

Provision for appliance warranties
Provision for point card certificates

12,9851,000

10,843
1,635

Asset retirement obligations
Other noncurrent liabilities

14,42453,501

23,31389,188

Total non-current liabilities

1,010,676

1,145,067

Current liabilities
Current portion of non-current liabilities

54,428

108,704

Notes and accounts payable - trade
Short-term borrowings

78,593
6,507

84,265
5,706

Income taxes payable
Other current liabilities

29,708200,865

11,710204,623

Total current liabilities

370,104

415,010

1,380,780

1,560,077

Shareholders' equity
Share capital

141,844

141,844

Capital surplus
Retained earnings

2,067
967,718

1,145
990,762

Treasury shares-3,875-3,907

1,107,754

1,129,845

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

15,843
1,444

22,990-11,240

Foreign currency translation adjustment
Remeasurements of defined benefit plans

22,412
292

4,322
7,895

Total accumulated other comprehensive income

39,992

23,968

Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

9

11,391

24,457

1,159,138

1,178,271

2,539,919

2,738,348

Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)
For the fiscal year
ended March 31,2020

For the fiscal year
ended March 31,2021

Net sales
Cost of sales

1,925,235
1,344,171

1,765,146
1,212,624

Gross profit

581,064552,522

Selling, general and administrative expenses
Supply and sales expenses

408,730

410,167

General and administrative expenses

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

479,645474,846

101,418

77,675

Operating profit
Non-operating income
Interest income

2,330

1,586

Dividend income
Share of profit of entities accounted for using equity method

5,433
5,211

2,398
1,482

Gain on derivatives
Miscellaneous income

100
7,352

7,979
7,757

Total non-operating income

20,42921,204

11,412

12,629

1,174
6,614

9,373
6,376

Non-operating expenses
Interest expenses
Loss on derivatives
Miscellaneous expenses
Total non-operating expenses

19,202

28,379102,645

70,500

-

3,114
5,283

Gain on bargain purchase
Gain on settlement of contract

11,6272,008-

Total extraordinary income

11,627

10,406

Impairment losses
Loss on valuation of investment securities

28,152
18,643

10,255
4,466

Total extraordinary losses

46,796

14,722

Profit before income taxes

67,476

66,184

Income taxes - current

31,196

16,887

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

Extraordinary losses

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

Total income taxes

23,99915,712

Profit43,47750,471

184

966

43,29349,505

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

10

Consolidated Statements of Comprehensive Income(Million yen)
For the fiscal year
ended March 31,2020
ProfitOther comprehensive income

For the fiscal year
ended March 31,2021

43,47750,471

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges-6,878-850

7,178-10,014

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using
equity method
Total other comprehensive income-1,916
6,150-14,869
7,751

178-6,259-3,316-16,212

40,161

34,25940,14812

33,480778

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

11Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31,2020(Million yen)
Shareholders' equity
Share capital
Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Capital surplus

141,844

Retained earnings

1,634

Total shareholders'equityTreasury shares

976,550-4,111

6
141,844

1,634

976,556

1,115,918
6-4,111

1,115,925

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesCancellation of treasury
sharesIncrease in the number ofconsolidated subsidiaries
Change in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items otherthan shareholders' equity
Total changes during
periodBalance at end of period

Balance at beginningof period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesCancellation oftreasury shares
Increase in thenumber of
consolidated
subsidiaries
Change inownership interestof parent due totransactions with
non-controlling-27,853-27,853

43,29343,293-24,272-24,038-24,0381

1

24,272

-

-5

-5

432

432

-

432

-8,838235-8,170141,8442,067

967,718-3,875

1,107,754

Accumulated other comprehensive income
Valuation
Foreign
Total accumulated Non-controlling
Deferred gains
Remeasurements
difference on
currency
otherinterests
or losses onof defined
available-for-stranslation
comprehensive
hedgesbenefit plans
ale securities
adjustment
incomeTotal net assets

22,756

1,604

24,770-5,994

43,137

12,2891,171,345
6

22,756

1,604

24,770-5,994

43,137

12,2891,171,352-27,853
43,293-24,038
1
-5

432

12

Accumulated other comprehensive income
Valuation
Foreign
Total accumulated Non-controlling
Deferred gains
Remeasurements
difference on
currency
otherinterests
or losses onof defined
available-for-stranslation
comprehensive
hedgesbenefit plans
ale securities
adjustment
incomeTotal net assetsinterests
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period-6,913-160-2,3586,287-3,144-898-4,042-6,913-160-2,3586,287-3,144-898-12,213

15,843

1,444

22,412292

39,992

11,391

1,159,138

13

For the fiscal year ended March 31,2021(Million yen)
Shareholders' equity
Share capital
Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Capital surplus

141,844

Retained earnings

2,067

Total shareholders'equityTreasury shares

967,718-3,875

1,107,754-

141,8442,067

967,718-3,875

1,107,754

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesCancellation of treasury
sharesIncrease in the number ofconsolidated subsidiaries
Change in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items otherthan shareholders' equity
Total changes during
periodBalance at end of period-26,460-26,460

49,50549,505
-32

-32

1

1
-

-921

-921
-

-

-921

23,044-31

22,091

141,8441,145

990,762-3,9071,129,845

Accumulated other comprehensive income
Valuation
Foreign
Total accumulated Non-controlling
Deferred gains
Remeasurements
difference on
currency
otherinterests
or losses onof defined
available-fortranslation
comprehensive
hedgesbenefit planssale securities
adjustment
incomeBalance at beginningof period
Cumulative effects ofchanges in accounting
policies
Restated balance

15,843

1,444

22,412292

39,992

11,391

Total net assets

1,159,138-

15,843

1,444

22,412292

39,992

11,391

1,159,138

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesCancellation oftreasury shares
Increase in thenumber of
consolidated
subsidiaries
Change inownership interestof parent due totransactions with
non-controllinginterests
Net changes in items
other than

-26,460
49,505
-32
1
-

-921

7,146

-12,684-18,0897,602

14-16,024

13,0652,958

Accumulated other comprehensive income
Valuation
Foreign
Total accumulated Non-controlling
Deferred gains
Remeasurements
difference on
currency
otherinterests
or losses onof defined
available-fortranslation
comprehensive
hedgesbenefit planssale securities
adjustment
incomeTotal net assets

shareholders' equity
Total changes during
periodBalance at end of
period7,146-12,684-18,089

7,602-16,024

13,065

19,132

22,990-11,240

4,322

7,895

23,96824,457

1,178,271

15

Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended March 31,2020
Cash flows from operating activities
Profit before income taxes

For the fiscal year
ended March 31,2021

67,476

66,184

165,615
28,152

176,087
10,255

Amortization of long-term prepaid expenses
Loss on retirement of property, plant and equipment

4,263
2,164

3,722
3,274

Loss (gain) on sale of non-current assets
Loss (gain) on sale of investment securities

244
-108

-3,102-5,283

Loss (gain) on valuation of investment securities
Loss (gain) of derivatives

18,643
1,073

4,466
1,393

Gain on bargain purchase
Increase (decrease) in retirement benefit liability

5,206-2,008-2,918

Increase (decrease) in provision for appliance warranties
Interest and dividend income-1,072-7,763-2,141

Interest expenses
Share of loss (profit) of entities accounted for using equity method

11,412-5,211-3,984
12,629
-1,482

Decrease (increase) in trade receivables
Decrease (increase) in inventories

52,646172

5,126
18,643

Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes

8,952
7,979

8,080
-1,072

Decrease (increase) in accounts receivable - other
Other, net-1,619-23,678-6,242
11,217

Subtotal

334,549

292,844

Interest and dividends received
Interest paid

14,510-11,087

7,843-12,630

Income taxes paid

-31,676-32,482

Net cash provided by (used in) operating activities

306,296

255,574-55--4,287-1,200Purchase of investment securities
Proceeds from sale and redemption of investment securities-23,989
1,916-37,467
16,573Purchase of property, plant and equipment
Purchase of intangible assets-177,664-41,908-172,652-35,725

Purchase of long-term prepaid expenses
Proceeds from sale of non-current assets-2,183282-2,456
5,151

Payments for retirement of property, plant and equipment
Long-term loan advances-36-16,989-1,043-11,831

Proceeds from collection of long-term loans receivable
Net decrease (increase) in short-term loans receivable

4,853
530

4,037
-2,854

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 scopeof consolidation
Payments for acquisition of businesses
Other, net-2,7091,855-6,957
4,916-17,908-32,579

-

7,006

-393
3,601

-25,208
667-270,798-295,911

Depreciation
Impairment losses

Cash flows from investing activities
Payments into time deposits
Purchase of securities

Net cash provided by (used in) investing activities

16

(Million yen)
For the fiscal year
ended March 31,2020
Cash flows from financing activities
Repayments of lease obligations

For the fiscal year
ended March 31,2021- 2,646-2,414

Proceeds from long-term borrowings
Repayments of long-term borrowings

71,542-43,390

51,035- 35,981

Proceeds from issuance of bonds
Redemption of bonds
Purchase of shares of subsidiaries not resulting in change in scope of
consolidation
Dividends paid
Other, net

90,000-30,000

90,000-20,000-131-2,275-27,839-34,362-26,449-1,905

Net cash provided by (used in) financing activities

23,17152,009Effect of exchange rate change on cash and cash equivalents-489-5,088Net increase (decrease) in cash and cash equivalents

58,1796,584

Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting from change inscope of consolidation
Cash and cash equivalents at end of period

93,032

151,2186

8151,218

157,81117

(5)Notes on consolidated financial statements1) (Note on going concerns’ premise)
Not applicable2) (Additional information)
The Company purchased a large-scale mission critical system that was newly established during the fiscal year
under review for ¥55,035 million as an intangible fixed asset. As a result of estimating the usable period, theCompany has determined the useful life to be 10 years.
Accounting estimates on the impact of COVID-19
During the fiscal year under review, the outbreak of COVID-19 had an impact on the Group in the form of adecline in commercial demand in city gas sales volumes, among others. As we cannot currently foresee when the
pandemic will abate, it is difficult to determine its impact on the Group.
Accounting treatments require estimations to be made based on certain assumptions. The Group has madeaccounting estimates by assuming that operating results will start to gradually recover in FY2021, referring toforecast data by outside research institutions available at the time of preparation of consolidated financial
statements for the fiscal year under review and in view of the impact of each business on the operating results forthe fiscal year.
3) (Segment information, etc.)
1. Overview of reporting segments
The Group’s reporting segments are regularly reviewed by the Board of Directors using the segregated financial
information available within each segment to determine the allocation of management resources and evaluatebusiness results.
The Tokyo Gas Group is deploying business activities in the following areas—in addition to the core of theGroup’s operating structure, which consists of city gas, liquid gas, and gas (including LNG sales), which are allenergy produced using natural gas as a resource, the Group also delves in the electric power business, which is a
new pillar of the Group’s revenues, the overseas business to remake ourselves as a global company group, and theengineering solutions business, which utilizes energy.
Furthermore, businesses involving the efficient utilization of the Group’s real estate holdings represent anotherearnings base, and the Group therefore employs the five reporting segments of “gas,” “electric power,”“overseas,” “energy related,” including the engineering solutions, which utilize energy and “real estate.”
The main products and services of each reporting segment are as follows:
Gas:
City gas, liquid gas business (LNG, industrial gas), LNG sales, etc.
Electric power: Electric power
Overseas:
Overseas resource development and investment, energy supply, etc.
Energy related: Engineering solutions business (engineering, energy service, etc.), gas appliances, gas
installation work, construction, etc.
Real estate:
Leasing, management, etc. of land and buildings
2. Calculation of net sales, profit and loss, and assets, etc.
The accounting method of reported business segments has not been changed from what is described in theimportant matters that form the basis of preparation of consolidated financial statements in the latest securities
report (submitted June 26, 2020).
Income of reporting segment is based on operating profit plus or minus investment gain or loss on equity method.
Intersegment sales and transfers are attributable to transactions within group companies, and calculated based onmarket value.

18

3. Information related to net sales, profit and loss, and assets, etc. by reporting segment
Fiscal year ended March 31, 2020 (from Apr. 1, 2019 to Mar. 31, 2020)(Unit: million yen)
Reporting segment
Electric
power

Gas

Net sales
External sales
Intersegment sales& transfers
Total
Segment profit
Operating profit(loss)
Investment gain on
equity method
Total
Segment Assets
OthersDepreciation
expenses
Increase inproperty, plant,
equipment, andintangible assets

Overseas

EnergyrelatedRealestate

Total

Others(Note 1)

Total

Amountrecorded on
Adjustments consolidated(Note 2) statement ofincome(Note 3)

— 1,925,235

1,195,898

358,005

36,838

302,761

21,575 1,915,079

10,156 1,925,235

159,526

625

7,144

49,14822,954

113,050

1,355,425

358,630

43,983351,91044,529 2,154,479

102,433

10,051

8,606

16,995

9,151

147,2395,750

152,989(51,571)

101,418

—

—

4,649

—

547

5,196

15

5,211

—

5,211

9,698

152,435

5,766

158,201(51,571)

106,630

102,433

10,051

13,255

16,995

1,309,752

169,496258,780

254,294

126,383

8,949

11,128

11,103

7,132

162,385

6,185

9,032

18,017

31,464

239,399

258,050 2,250,373

352,450

123,207 2,277,686(352,450)—(352,450) 1,925,235

46,163 2,296,537

243,381 2,539,919

164,697

4,924

169,621(4,005)

165,615

227,085

2,747

229,833(4,958)224,874

Notes:
1. The “Others” segment indicates businesses not included in the reporting segments, including information
processing service, shipping business, etc.
2. The “Adjustments” indicates as follows;(1) The ¥(51,571) million segment profit adjustment includes ¥(237) million in eliminations for intersegment
transactions and ¥(51,333) million of companywide expenses not allocated to the respective reporting
segments. Companywide expenses are primarily, general and administrative expenses that are not assignable
to a reporting segment.
(2) The ¥243,381 million segment assets adjustment includes ¥327,645 million of companywide assets notallocated to the respective reporting segments, and ¥(84,263) million of net eliminations for intersegment
obligations. Companywide assets are primarily, financial assets that are not assignable to a reporting
segment.
3. Segment profit is adjusted to reflect operating profit recorded in the consolidated statement of income which isadjusted by investment gain or loss on equity method.
4. Segment information for FY2019 presents figures that have reflected the confirmed details of the provisional
accounting treatments on business combinations.

19Fiscal year ended March 31, 2021 (from Apr. 1, 2020 to Mar. 31, 2021)(Unit: million yen)
Reporting segment
Electric
power

Gas

Net sales
External sales
Intersegment sales& transfers
Total
Segment profit
Operating profit(loss)
Investment gain on
equity method
Total
Segment Assets
OthersDepreciation
expenses
Increase inproperty, plant,
equipment, andintangible assets

Overseas

EnergyrelatedRealestate

Total

Others(Note 1)

Total

— 1,765,146

1,003,550

394,870

42,376

293,417

21,892 1,756,106

143,241

1,050

3,557

46,03826,5301,146,791

395,92045,934339,455

48,422 1,976,525

88,461

8,696

3,399

17,045

6,565

124,167

3,801

127,968(50,293)

77,675

—

—

496

—

980

1,476

5

1,482

—

1,482

7,545

125,643

3,807

129,450(50,293)

79,157

220,4199,040 1,765,146

Amountrecorded on
Adjustments consolidated(Note 2) statement ofincome(Note 3)

101,384

321,803

110,424 2,086,950(321,803)—(321,803) 1,765,146

88,461

8,696

3,895

17,045

1,262,848

249,088361,228

252,545296,867 2,422,577

39,947 2,462,525

275,823 2,738,348

127,266

10,335

14,566

11,79011,737

175,696

4,406

180,102(4,014)

176,087

147,217

15,141

48,76915,746

16,723

243,598

1,553

245,152(3,978)241,173

Notes:
1. The “Others” segment indicates businesses not included in the reporting segments, including information
processing service, shipping business, etc.
2. The “Adjustments” indicates as follows;(1) The ¥(50,293) million segment profit adjustment includes ¥(1,473) million in eliminations for intersegment
transactions and ¥(48,820) million of companywide expenses not allocated to the respective reporting
segments. Companywide expenses are primarily, general and administrative expenses that are not assignable
to a reporting segment.
(2) The ¥275,823 million segment assets adjustment includes ¥351,585 million of companywide assets notallocated to the respective reporting segments, and ¥(75,762) million of net eliminations for intersegment
obligations. Companywide assets are primarily, financial assets that are not assignable to a reporting
segment.
3. Segment profit is adjusted to reflect operating profit recorded in the consolidated statement of income which isadjusted by investment gain or loss on equity method.

204) (Per share information)(Unit: yen)

FY2019(Apr. 2019–
Mar. 2020)
2,602.53
97.86

FY2020(Apr. 2020 –Mar. 2021)
2,616.37
112.26

Shareholders’ equity per share
Profit per share
Notes:
1. Diluted profit per share is not disclosed as no latent shares exist.
2. The shareholders’ equity per share and profit per share for FY2019 are based on amounts that have reflected theconfirmed details of the provisional accounting treatments on business combinations.
3. Basis for calculation of profit per share is as follows.
FY2019FY2020(Apr. 2019 –(Apr. 2020 –Mar. 2020)
Mar. 2021)
Profit attributable to owners of parent (million yen)
43,29349,505
Not attributable to common shareholders (million yen)——
Profit attributable to owners of parent with regard to the common
43,29349,505
shares (million yen)
Average number of common shares outstanding (thousand shares )442,380
441,006
4. Basis for calculation of BPS is as follows.
FY2019FY2020(as of Mar. 31, 2020) (as of Mar. 31, 2021)
Shareholders’ equity (million yen)
1,159,138
1,178,271
Deduction from shareholders’ equity (million yen)
11,391
24,457-Shares of minority shareholders (million yen)
11,391
24,457
Net shareholders’ equity attributable to common shares (million yen)
1,147,747
1,153,813
Number of shares to calculate BPS (thousand shares)
441,011440,99821

5) (Material subsequent events)
Acquisition of treasury shares
The Board of Directors of Tokyo Gas Co., Ltd. meeting today, resolved to acquire treasury shares pursuant to Article
156 of the Companies Law as applied mutatis mutandis to Article 165:3 of the law.
The details of the purchase of treasury shares are as follows.
· Type of stock to be acquired: Tokyo Gas common stock· Total number of shares to be acquired: 1.7 million (upper limit)(Rate to number of shares outstanding 0.4％)· Total value of shares to be acquired: ¥3.3 billion (upper limit)
· Term of acquisition: May 6, 2021– September 30, 2021
Spin-off into Tokyo Gas Network Co., Ltd. (absorption-type company split)
Based on a resolution passed by the Board of Directors on April 28, 2021, the Company will succeed its gas pipeline
business to Tokyo Gas Network Co., Ltd. by means of a spin-off on April 1, 2022 (planned), with whom it signed anabsorption-type company split agreement (hereinafter, the “Spin-off”).
The effectuation of the Spin-off will be subject to the approval of related proposals at the annual general meeting ofshareholders to be held on June 29, 2021 and the acquisition of approvals necessary for the execution of business by
the relevant government agencies.
1. Background and purpose of Spin-off
Pursuant to the Gas Business Act revised in June 2015, Tokyo Gas Co., Ltd. (hereinafter, “the Company”), which
is a special general gas pipeline service provider, will be prohibited from engaging in the gas production businessor gas retail business and the gas pipeline business concurrently starting from April 2022 to ensure further
neutrality of the gas pipeline business.
To meet the requirement of the Act, the Company established Tokyo Gas Network, a wholly owned subsidiary, asa Spin-off Preparatory Company on April 1, 2021 and signed an absorption-type company split agreement with
Tokyo Gas Network in which the Company’s gas pipeline business, etc. is assumed by Tokyo Gas Network,
effective April 1, 2022.
2. Outline of Spin-off(1) Spin-off schedule
Board of Directors resolution for signing of absorption-typecompany split agreement (the Company)
Directors’ decision for signing of absorption-type company split
agreement (the successor company)
Signing of absorption-type company split agreement
Annual general meeting of shareholders approval of absorption-typecompany split agreement (the Company)
Extraordinary general meeting of shareholders approval ofabsorption-type company split agreement (the successor company)
Effective date of absorption-type company split agreement

April 28, 2021
April 28, 2021
April 28, 2021
June 29, 2021 (planned)
June 29, 2021 (planned)
April 1, 2022 (planned)(2) Spin-off method
An absorption-type company split with the Company as the spin-off company and Tokyo Gas Network as the
successor company.
(3) Allotment pertaining to Spin-off
In the Spin-off, Tokyo Gas Network, which is the successor company, will issue 12.63 million shares ofcommon stock and allocate all of the shares to the Company.
(4) Treatment of share acquisition rights and corporate bonds with share acquisition rights following Spin-off
The Company issues neither share acquisition rights nor corporate bonds with share acquisition rights.
(5) Changes in paid-in capital due to Spin-off
There will be no changes in the paid-in capital of the Company.
(6) Rights and obligations assumed by successor company
22

Pursuant to the provision of the absorption-type company split agreement dated April 28, 2021 that wasentered into with the Company, the successor company will assume the Company’s rights and obligations
related to the Company’s gas pipeline business and ancillary businesses on the effective date.
The successor company’s assumption of debt due to the Spin-off shall be done without recourse to theCompany.
Any debt pertaining to the Company’s existing bonds sold through public offerings will not be assumed by
the successor company.
(7) Prospect of fulfillment of obligations
No problems are foreseen in the fulfillment of obligations by the Company and the successor company after
the Spin-off since the assets of both the Company and the successor company are expected to exceed
liabilities after the Spin-off and no circumstance that could impede the fulfillment of obligations to be borne
after the Spin-off is anticipated at present.

3. Outline of operating units to be spun off(1) Description of operations to be spun off
Gas pipeline business and ancillary businesses(2) Operating results of units to be spun off (Results for fiscal year ended March 31, 2021)
Description of operations Net sales of operations Net sales of the Company
Ratio (a/b)
to be spun off
to be spun off (a)(Non-consolidated) (b)Gas pipeline business
83,687million yen
1,612,911million yen
5.2%
and ancillary businesses
Note: Net sales are sales to external customers.
(3) Category and amount of assets and liabilities to be spun off (As of March 31, 2021)
AssetsLiabilities
Category
AmountCategory
AmountNon-current assets
641,808 million yen Non-current liabilities
3,132 million yen
Current assets
41,477 million yen Current liabilities
48,625 million yen
Total
683,285 million yen Total
51,757 million yen
Note: The above amounts are based on the balance sheet values as of March 31, 2021. The actual amounts thatare succeeded will reflect the addition or deduction of any changes that occur before the effective date.
4. Status of Company after Spin-off (As of April 1, 2022 (anticipated))(1) Company nameTokyo Gas Co., Ltd.
(2) Address
1-5-20 Kaigan, Minato-ku, Tokyo(3) Name and title of representative UCHIDA Takashi, Representative Director, President
Gas production business(4) Businessgas retail business, etc.
(5) Capital
141,844 million yen(6) Closing date
March 31
5. Status of successor company after Spin-off (As of April 1, 2022 (anticipated))(1) Company nameTokyo Gas Network Co., Ltd.
(2) Address
1-5-20 Kaigan, Minato-ku, Tokyo(3) Name and title of representative NOHATA Kunio, Representative Director, President(4) Business
Gas pipeline business, etc.
(5) Capital
10,000 million yen(6) Closing date
March 3123

Non-consolidated Financial Statements
Non-consolidated Balance Sheets(Million yen)
As of March 31,2020

As of March 31,2021

AssetsNon-current assets
Property, plant and equipment
Production facilities

228,801

235,770

Distribution facilities
Service and maintenance facilities

541,353
45,482587,935
12,734

Facilities for incidental businesses
Inactive facilities

5,461
316

5,093
316

Construction in progress

82,47523,954

Total property, plant and equipment

903,890865,804

Patent rightLeasehold interests in land

10
1,805

228
1,765

Goodwill
Software86
59,89671
125,816

Intangible assets

Other intangible assets

61,80911,918

Total intangible assets

123,608

139,800

Investments and other assets
Investment securities

54,421

58,125Investments in subsidiaries and associates
Long-term loans receivable

375,88935

460,744
28

Long-term loans receivable from subsidiaries and associates
Investments in capital

156,738
13

183,220
13

Long-term prepaid expenses
Deferred tax assets

14,95629,943

13,97325,685

Other investments
Allowance for doubtful accounts

7,789
-442

9,178
-421

Total investments and other assets

639,344

750,547

1,666,843

1,756,152

Cash and deposits
Notes receivable - trade

84,563
1,785

52,611926

Accounts receivable - trade
Accounts receivable from subsidiaries and associates - trade148,758
44,284143,407
37,065

Accounts receivable - otherFinished goods

7,077
94

11,86571

Raw materials
Supplies

36,937
11,456

27,67012,056

Advance payments
Prepaid expenses

1,162
1,606

1,156
1,598

Short-term receivables from subsidiaries and associates
Other current assets

34,32756,23433,44633,957-638-1,416

Total non-current assets
Current assets

Allowance for doubtful accounts
Total current assets
Total assets

24

427,650

354,416

2,094,493

2,110,568

(Million yen)
As of March 31,2020

As of March 31,2021

Liabilities
Non-current liabilities
Bonds payable
Long-term borrowings

404,998
341,932

474,998
346,744

Long-term debt to subsidiaries and associates
Provision for retirement benefits

64,656

3,096
61,576

Provision for gas holder repairs
Provision for safety measures

2,695
593

2,781
349

Provision for appliance warranties
Allowance for points redemption

12,9851,000

10,843
1,635

Asset retirement obligations
Other noncurrent liabilities

318
17,933321
15,068

Total non-current liabilities

847,114

917,415

Current liabilities
Current portion of non-current liabilities

45,96845,909Accounts payable - trade
Accounts payable - other45,492
55,912

49,926
41,637

Accrued expenses
Income taxes payable

49,11522,57447,976
4,523

Advances received
Deposits received

7,743
1,482

7,979
1,218

Short-term borrowings from subsidiaries and associates
Short-term debt to subsidiaries and associates

119,501
63,082125,997
56,577

Asset retirement obligations
Other current liabilities

411
17,662

6,405

Total current liabilities
Total liabilities

428,946

388,152

1,276,060

1,305,568

Net assets
Shareholders' equity
Share capital

141,844

141,844

Capital surplus
Legal capital surplus

2,065

2,065

Total capital surplus

2,065

2,065

Retained earnings
Legal retained earnings

35,45435,454

6,013

5,616

Reserve for overseas investment loss
Reserve for adjustment of cost fluctuations

4,393
141,000

2,469
141,000

General reserve
Retained earnings brought forward

339,000
146,578

339,000
128,825

672,439652,365

Other retained earnings
Reserve for tax purpose reduction entry of non-current assets

Total retained earnings
Treasury shares-3,875-3,907

Total shareholders' equity

812,473

792,368

15,28722,408Valuation and translation adjustments
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges-9,327-9,777

Total valuation and translation adjustments

5,959

12,631

Total net assets
Total liabilities and net assets

25

818,433

805,000

2,094,493

2,110,568

Non-consolidated Statements of Income(Million yen)
For the fiscal year
ended March 31,2020
Sales from gas business
Gas sales

For the fiscal year
ended March 31,2021

1,071,736

878,91127,567
7,202

41,676
7,229

1,106,506

927,817113

94

643,530
10,385467,835
17,119

1,786
94

1,168
71

652,148

483,809

Gross profit

454,357

444,007

Supply and sales expenses

355,373

356,082

Gas transportation service revenue
Revenue from interoperator settlement
Total sales from gas business
Cost of sales
Beginning inventories
Cost of products manufactured
Purchase of finished goods
Costs of gas for own use
Ending inventories
Total cost of sales

General and administrative expenses

72,96567,544

Total selling, general and administrative expenses

428,339423,627

Profit on core business

26,01820,380Miscellaneous operating revenue
Revenue from installation work

42,43737,867

Other miscellaneous operating revenue

118,923

118,626

Total miscellaneous operating revenue

161,361

156,493

Installation work expenses
Other miscellaneous operating expenses

41,56594,35537,56387,492

Total miscellaneous operating expenses

135,921125,056

Revenue from incidental businesses

520,107528,600

Expenses for incidental businesses

509,521533,347

Operating profit

62,04447,069Miscellaneous operating expenses

26

(Million yen)
For the fiscal year
ended March 31,2020
Non-operating income
Interest income

For the fiscal year
ended March 31,2021

418

556

Dividend income
Dividends from subsidiaries and affiliates

1,730
12,181

1,404
6,078

Gain on derivatives
Miscellaneous income

15
9,938

7,787
6,947

Total non-operating income

24,283

22,774

4,065

3,782

Interest on bonds
Amortization of bond issuance costs

5,286
472

5,381
488

Loss on derivatives
Miscellaneous expenses

1,114
7,047

9,267
4,161

Total non-operating expenses

17,98623,08068,342

46,764Gain on sale of investment securities
Gain on settlement of contract

9,689

4,786
-

Total extraordinary income

9,689

4,786

2,040

-

Non-operating expenses
Interest expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on valuation of investment securities

2,040

-

Profit before income taxes

Total extraordinary losses

75,991

51,550

Income taxes - current

20,488

7,200

Income taxes - deferred-1,200

1,834

Total income taxes

19,287

9,034

Profit

56,70342,51627