Compass Transformation 23-25
Tokyo Gas Group Medium-term Management Plan for FY2023-2025(announced February 22, 2023)

Executive SummaryWe, the Tokyo Gas Group, are positioning FY2023-2025 as a time to transform ourbusiness model into one that contributes to a sustainable society and provides value tocustomers through solutions and businesses that go beyond our traditional focus onenergy. To do this, we will execute three core strategies that center on green
transformation (GX), digital transformation (DX), and customer experience (CX).
As we implement our strategies, we will swiftly and flexibly address energy market
volatility and uncertainties by strengthening our business portfolio management in terms
of profitability, growth potential, and stability, and by accelerating the shift ofmanagement resources to new growth areas.

■ The 3 Core Strategies for FY2023-2025(1) Achieve both stable energy supply & decarbonization
Commercialize and monetize the business in decarbonization area, while continuing to stably supply
energyLeveraging value chain flexibility to address market volatility and maintain stable supply
・We will respond to the increased volatility of energy markets through asset formation/operationaligned with markets promising new growth (balancing capacity, environmental value, etc.).
We will also construct a digital trading platform that will better enable us to provide a stable,
environmentally responsible, and flexible supply of energy that serves customer needs.
Responsibly leading the transition
・While promoting the sophisticated use of LNG in Japan and overseas as a means of reducing CO2
emissions, we will use the resulting earnings to invest in advanced fields of decarbonization—
renewable energy (especially offshore wind power and other expansive markets), e-methane,hydrogen, and more—and progressively turn those investments into businesses. We will also
support both the decarbonization and economic growth of society by establishing a virtuous circleof sustainable growth for our customers and our Group whereby we strive not only to reduce
our own emissions but also provide customers with optimal solutions tailored to their needs.

Developing technologies for decarbonizing gas & electricity
・We will proactively decarbonize the biggest area of energy demand—heat supply—bystrengthening and expanding our e-methane initiatives, progressing from small-scaledemonstration tests to the construction of a large-scale supply chain. In the electric power
market, we will implement not only solar/biomass power initiatives, but also projects for increasing
scale and lowering costs in offshore wind power, working together with the national government
to achieve Japan’s GX at an early stage.

(2) Fully roll out Solutions business
Develop Solution business as a center next to Energy business, by integrating solutions which
incorporate GX & DX

Building an integrated business brand & expand lineup of solutions
・Redefining the value we provide customers as resilience, optimization, and decarbonization,
we will build a new brand that integrates solutions offering that value, and we will provide ourresidential, corporate, and community customers with a lineup of solutions they can easily
understand and use.

Strengthening customer communication through our strengths in face-to-face engagement andthrough digital technologies
・We will strengthen customer communication using advanced digital technologies supplied by
Octopus Energy, etc., with the aim of further consolidating the customer relationships we havebuilt up through face-to-face engagement.

Co-creating value with communities by providing them with optimized solutions that leverage ourstrong root in the community
・We will help customers and communities to overcome the challenges they face by providingthem with optimized combinations of all sorts of environmental solutions (ranging fromenergy conservation to advanced decarbonization technology) that we and our alliancepartners have to offer. In addition, we will support the realization of sustainable communities bypromoting ESG-oriented real estate development and urban development with a growing rangeof solutions, service areas, and business fields.

(3) Realize a flexible corporate culture resilient to change
Increase resilience to uncertainty by transforming our business model through DX, in addition to
exercising human capital management and implementing financial strategy.

Implementing 3 key DX actions
・We will implement 3 key DX actions for evolving our systems and work processes in ways thatleverage the advantages of digital technologies and incorporate insights from pioneeringbusinesses. Action 1: Construct a digital trading platform that will become a future source ofrevenue, targeting new markets that promise to grow with the shift to renewables as the dominantsource of electric power (e.g., balancing capacity and environmental value markets). Action 2:
Significantly enhance customer experience (CX) through integration of our customer
management system platform. Action 3: Radically overhaul our back-office operations todouble their productivity.

Exercising human capital management
・We will take a strategic approach to talent recruitment, placement, training, and reskilling,
and develop systems that enable diverse talent to play active roles across our Group with theaim of enabling our internal companies and key business subsidiaries to carry out impactful work intheir respective markets and increase their earning power. Through these actions, we will exercise

human capital management in ways that provide a real sense of our growth, both as individuals
and as a Group.

Strengthening our financial base・We will strengthen our business portfolio management to pursue growth investments while
maintaining financial soundness, and to realize sustainable growth and improvement of ourenterprise value.

■KPIs
Now
(FY2020-22 average)

FY2025130 bn yen

150 bn yen

ROA*1

3.0%

approx. 4%

ROE*1

7.3%

approx. 8%

D/E ratio

0.91

approx. 0.9

6 mn tons*2

12 mn tons*3

FY2020-22 (estimated)

FY2023-25

Cumulative operating cash flow
(Profit attributable to owners of parent +depreciation)

960 bn yen

1,100 bn yen

Growth investments(portion for
decarbonization-related
investments)

530 bn yen(190 bn yen)

650 bn yen（230 bn yen)

370 bn yen

350 bn yen

900 bn yen

1,000 bn yen

Financial & Environmental Indicators
Segment profits*1(operating profit + equity
income of subsidiaries)

Financial

Environmental

CO2
reduction contribution

Cash Flow & Investment Plan

Investments

Infrastructure
investments
Total (3 years)*1 Profits after revision of sliding time lag effects*2 Average for FY2020-21, Japan only

*3 Includes overseas

Compass
Transformation 23-25
Tokyo Gas Group Medium-term Management Plan for FY2023-2025

February 22, 2023

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Compass Transformation 23-25 Contents

1. Introduction
2. Current Environment & Our Accomplishments
3. Overview of Compass Transformation 23-25
The 3 core strategies for FY2023-2025
Business portfolio management

4. Concrete Actions for the 3 Core Strategies(1) Achieve both stable energy supply & decarbonization(2) Fully roll out Solutions business(3) Realize a flexible corporate culture resilient to change

5. KPIs & Investment Plan
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2

1. Introduction

3

1. Introduction — Positioning of FY2023-2025 —• We will responsibly lead the transition to a decarbonized society by progressively launching new businesses for renewable energy (offshore wind

power, etc.), e-methane*, hydrogen, etc., while maintaining the stable supply of energy.

Actions for
FY2023-25

 We will lay the foundation for the full rollout of our Solutions business by accelerating the Group-wide implementation of digital transformation
initiatives in collaboration with pioneering companies, and building a platform that fuses strengths in face-to-face engagement and digitaltechnologies.
 We will establish a flexible corporate culture that is resilient to change by strengthening the competitiveness of the internal companies and major
business subsidiaries under our holdings-type group structure, and exercising human capital management in ways that provide a real senseof our growth, both as individuals and as a Group.

Standing by every person and dedicating ourselves to the society,we shall be the energy that weaves the futureGroup’s Management
Philosophy

Key sustainability issues (material issues) we will tackle through our business activities
Society and Customers

Tokyo Gas Group (Us)

■Responsibly transitioning to a decarbonizedsociety■Protecting the global environment■Securing stable energy supply■Enhancing safety & disaster prevention, resilient
regional development■Contributing to well-being of people and communities

2020-2022

2023-2025

Launched 3 challenges

Transform our business model into one that drives
society’s sustainable growth and provides evengreater value to customers through solutions andbusinesses that
go beyond our traditional focus on energy

Formulated new Group’s Management
PolicyTransitioned to company with nominating
committee & holdings-type group structure* Methane synthesized from non-fossil fuel energy raw materials (green hydrogen, etc.)

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■Realizing an organization that embraces diverse
talent■Respecting human rights across the entire value
chain

2030
Lead transition to Net-zero CO2
Establish a value co-creation
ecosystem
Transform the LNG value chain
Profits of approx. 200 bn yen
42. Current Environment & Our Accomplishments52. The Current Environment & Our Accomplishments
External Environment
Growing geopolitical risks & greater market sophistication

Increased demand for decarbonization & sustainability

Tremendous evolution of digital technologies

The new normal & changes in values

2020-22 medium-term plan accomplishments

TG Group (Us)

Customers

Society

Results

FY2022 KGI: Profits are expected to
exceed goal of 140 bn yen① Lead transition to Net-zero CO2

 Actively invested in renewables in Japan &abroad Expanded carbon-neutral LNG*1② Establish a value co-creation ecosystem Partner with Octopus Energy
 Expanded decentralized energy systems &smart city development③ Transform the LNG value chain
 Transitioned to holdings-type group structure Launched new LNG trading company & newservices (last-mile, etc.)*1 LNG deemed to have net-zero CO2 emissions because carbon credits from forest conservation projects,
etc. are used to offset GHG emissions of the processes from exploration to combustion

Remaining challenges

3 core strategies for FY2023-25

 Achieve green transformation(GX) while maintaining stableenergy procurement & supply

1 Achieve both stable energy supply& decarbonization

 Strengthen customer experience(CX) by accelerating digitaltransformation (DX)

Actively commit resources to GX (renewables,
e-methane, etc.) while maximizing the diverse
value of LNG

2 Fully roll out Solutions business Establish new business(Solutions) to join energy
businesses (gas & electricity)

Use digital technologies to expand Solutions businesson our platform of real-world strengths, and establish
a revenue model Strengthen human capital byintroducing HR system aligned withholdings-type group structure, anddrive structural reforms withdigital tools (DX)

3 Realize a flexible corporate culture
resilient to change

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Use digital technologies to reform back-office
operations
Exercise human capital management63. Overview of Compass Transformation 23-25

7

３．The 3 core strategies for FY2023-2025
Positioning of
FY2023-2025

Transform our business model into one that drives society’s sustainable growth andprovides even greater value to customers through solutions and businesses that
go beyond our traditional focus on energy
1Achieve both stable energy supply & decarbonization

Commercialize and monetize the businesses in decarbonization area, while continuing to stably supply
energy in the face of uncertainties surrounding energy.
Specific
Actions

3 core23-25期間のstrategies for
3つのFY2023-2025
主要戦略

2

1. Basic stance on achieving both stable energy supply and decarbonization(p. 11)
2. Value creation that leverages flexibility across the value chain (p. 12)
3. Create a cycle of low-carbon/decarbonization actions and business growththrough a responsible transition (p. 13)

4. Sophisticated use of natural gas and decarbonization of gas/electricity(p. 14)
5. Increase sophistication and resilience of supply network (p. 15)
6. Strengthen revenue base & contribute to decarbonization overseas (p. 16)

Fully roll out Solutions business

Develop Solution business as a center next to Energy business, by integrating solutions which incorporate
GX & DX and by enhancing solutions that contribute to resolve issues faced by residential, corporate andcommunity customers.
1. Develop business brand (p. 18)

Specific 2. Enhance residential solutions to serve diverse customer needs (p. 19)
Actions 3. Enhance corporate customer solutions for the era of decarbonization &4. Expand community solutions through co-creation (p. 21)
5. Engage in ESG-oriented real estate development (p. 22)

decentralization (p. 20)

3Realize a flexible corporate culture resilient to change

Increase resilience to market volatility and uncertainty by transforming our business model and improving
productivity through DX, in addition to exercising human capital management and implementing financial
strategy.
Specific 1. Advance DX in ways that enhance value provided (p. 24)
2. Implement back-office operation reforms & CRE strategy (p. 25)
Actions 3. Improve value of human capital (p. 26)
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4. Enhance sustainability management (p. 27)
5. Implement financial strategy (p. 28)

8

３．Business portfolio management
As part of execution of the three core strategies, strengthen business portfolio management, with emphasis on:(1) profitability, (2) growth potential, and (3) stability
Basic policy forbusiness portfolio
management(1) Profitability: Use DX, back-office operation reforms, etc. to maximize cash flows created from core energy business(2) Growth potential: Use those cash flows to actively invest in the new growth areas of GX, solutions, etc.
(3) Stability: Ensure business stability across the Group even amid uncertainties that increase energy market volatility by
developing multiple businesses with different risk/return profiles under the holdings-type group structureManage volatility across the portfolio

Growth potential

Shifting resources toward new growth areas
Maximize synergy
among segments
GrowthDevelopment

GX
e-methane,hydrogen, etc.

Commercialize& monetization Solutions

Renewables(offshore wind power, etc.)

Environment, DX, etc.

Real Estate

ESG-oriented
development, etc.

Overseas

Shale + renewables/
decarb., etc.

Portfolio management initiatives
1
Maximize links &synergy among
establishedsegments

2
Reallocate management resources
Reallocate management
resources

Turn around falteringbusinesses, sell off
non-core segments

Selection

Energy(gas, electricity, networks)
Aggressive streamlining
Formation of customer baseunderpinning growth areas

Streamlining
Profitability

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Achieve mediumand long-term
growth3
Business exit &divestment guided
by best ownerperspective• Address market volatility with integrated
approach to supply/demand• Strengthen inter-segment collaboration in
Japan and abroad• Provide solutions combining diverse
products and applications, and engage in
ESG-oriented real estate development• Answer society’s growing demand for
decarbonization by investing in
renewables & methanation, and by
expanding decentralized solutions• Drive the reallocation of resources
through process of selection (identify
core vs. non-core segments, analyze life
cycles)9

4. Concrete Actions for the 3 Core Strategies①Achieve both stable energy supply & decarbonization10

①-1. Basic stance on achieving both stable energy supply and decarbonization
Tokyo Gas Group will create a new model for stable energy supplyTransform: Realize stable energy supply and advance decarbonization of both gas and electricity by taking sensible action as avery reliable energy supplier and by controlling the impact of energy market volatility through approaches that
integrate supply & demand and integrate customers and society
Focuses
Expand customer base and supply optimally while securing profitability across the Group through the provision ofValue:solutions that are tailored to customer needs and combine the different forms of value offered by LNG andrenewables

Greater market volatility
from marketization & large
shift to renewables
Trading using
our assets

×Strengtheningof market risk
management

Value for decarbonization
Strengthen ability to develop/procurecompetitive renewable energy power sources
Energy supply (raw material procurement, gas
production , transport & power generation

Decarbonization

Build up optimized assets and customer base while
securing group-wide profitability

Value for decentralization
Utilize decentralized resources (renewables,
storage batteries, EV) and expand
solutions (DR,* etc.)

Energy demand (retailing & providing solutions)
Expand credit offset products

Value for stable supply

Value for balancing capacity
Expand supply/demand balancing & trading

Transition

Secure long-term LNG contracts andpower sources for base load

Global natural gas supply/
demand crunch & market
volatility

Acceleration of
decarbonization
movement

Value for diverse range
of offerings

Value for flexibility
Develop gas/electricity pricing aligned withmarket fluctuations

Construct digital trading platform for optimal operation & management ofassets/contracts of Tokyo Gas Group, other companies, and customers
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Domestic electricity
supply/demand
crunchValue for integration*Demand response: System that supports stable supply by leveling electricity demand balance through power conservation by customers

11①-2. Value creation that leverages flexibility across the value chain
Support stable energy supply by developing sophisticated AO&T & constructing a digital trading platform
Transform: Address market volatility by leveraging the flexibility of our assets across the entire value chain
Focuses Value:

Realize optimal proposals that meet customer needs through solutions that combine our strengths in supplying andbalancing gas, electricity, and environmental value with customer demand/decentralized resources (developmentof solutions from energy supply and purchasing options)

What we’ve done

Actions for FY2023-25

Where we want to be in 2025

Laid AO&T* groundwork

Increase sophistication of AO&T

 DX-enhanced asset utilization, and expanded
lineup of energy solutions

 Launched LNG trading with
North America, Europe, and thePacific through collaboration
with European alliance partner*Asset Optimization & Trading:Integrated approach to optimal operation offacilities and trading Stronger market intelligence spanning Pacificand Atlantic, and expanded use of LNG trading Electricity digital trading platform in place

Expand LNG/electricity trading and increase sophistication
 Strengthen LNG trading in European/Pacific markets, combine
financial products and our assets, and engage in sophisticatedasset operation using digital technology
 Diversify trading by entering the electricity supply/demand balancing
marketNew energy trading approaches driven by digital tech

LNG carriers

LNG purchasing
Gas & power contracts
contracts
Customerequipment

Customers Built platform centered on
Singapore & Tokyo for LNG
trading in East Asia & Pacificregion Integrated management across the value chain of market risk and theoption value of our LNG/electricity assets (capacity, flexibility, value
added)
 Stably supply competitive energy through dynamic response to risks& opportunities (expanded range of energy solutions tailored to market
conditions)

LNGmarket

 Commenced optimal operationof LNG/electricity procurement,
supply, and trading in ways
leveraging our LNG assets

Risk management & flexible asset utilization across the value
chain

Digital trading platform
as envisioned for 2026 and beyond

Develop digital trading platform & expand product lineup Build a system that fuses the AO&T insights we have amassed with
Octopus Energy’s technologies
 Step up acquisition of decentralized resources (including grid storage
batteries and renewable energy plant storage batteries) and expand
lineup of decarbonization products/solutions
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LNG terminals

LNG-fired thermal power plants
Grid storage batteries

Renewable powersources

Electricity market

12①-3. Create a cycle of low-carbon/decarbonization actions and business growththrough a responsible transition
Provide solutions and develop advanced technologies toestablish a virtuous circle of low-carbon/decarbonization actions and growth

Transform: While maintaining our commitment to stable energy supply, establish a cycle for continuing to provide environmental
value to customers by creating a cycle between best available technologies/solutions and development of advanced
technologies
FocusesValue:Contribute to CO2 emission reductions across society and achieve growth for both our customers and our Group
Expansion of solutions & business domains
Use to reduce our emissions,etc., and add to lineup of new
effective solutions

Investment inadvanced
technologies• Renewable energy (offshore
wind power, etc. )• e-methane• Low-cost water electrolysis
technology• CCU*• Zero emissions from ourthermal power plants

Tokyo Gas

Reallocate management resources

Identify customer
needs and offer
tailored solutions

CO2 emission
reduction contribution
testing/verification

Continuously growing together with ourcustomers through low-carbon/
decarbonization actions

provision ofbest available
technologies& solutions• Sophisticated use of natural gas• Credits & certificates• Renewable energy (solar, wind, etc.)

Provide the bestsolutions acrosscustomers’ entire
lifecycle

introduction ofbest available
technologies& solutions

Customers

Exploration offurther measures
for improving
enterprise valueTurn into revenue streams

Planning of decarbonization solutions
development

Planning of further decarbonization
measures*Carbon capture and utilization

Reduce CO2 emissions across society
Maintain our commitment to stable energy supply
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13①-4. Sophisticated use of natural gas and decarbonization of gas/electricity
Leverage gas/electricity value chains to responsibly lead the transition

FocusesTransform: Further increase use of carbon-neutral LNG (CNL), and advance green transformation (GX) by establishingoverseas supply chain toward real-world deployment of e-methane and by expanding the renewable energy baseValue:While continuing to stably supply energy and striving to reduce CO2 emissions through sophisticated use of naturalgas, promote to decarbonize gas/electricity, and progressively turn expertise of our own emissions reduction into
solutions to contribute to customers

What we’ve done
Sophisticated use of natural gas
 Expanded use of CNL

Decarbonization of gas
 Conducted small-scale methanation
demonstration testing Developed innovative methane production
technology
 Developed low-cost water electrolysis cellstack

Decarbonization of electricity
 Expanded renewable power sources
through development & acquisition(renewable power source transaction volume *1:
1.49 mn kW)

Reduction of our emissions
 Began working to achieve net-zeroemissions of CO2 from our activities*2(achieved 18% of our net-zero target)

Actions for FY2023-25
 Expand solutions, including carbon credit-based CNL, etc.

Launch organization for advancing
decarbonization solutions (GX company)
 Establish large-scale e-methane supply chain
 Build large-scale e-methane supply chain overseas (US, etc.)(technology development, compliance with environmental value, raw material
procurement) Develop practical low-cost water electrolysis cell stackfor production of hydrogen Acquire renewable power sources toward acquisition of
new revenue sources

 Steadily expand renewable power sources Accelerate efforts for early real-world deployment of floating offshore wind power

 Study methods for achieving net-zero CO2 emissions from ourthermal power plants
 Achieve net-zero CO2 emissions from city gas
production facilities
 Implement countermeasures for methane emissions inshale development

Where we want to be in 2025
 Final investment target decision forbuilding large-scale e-methane supply
chain overseas
 Renewable power source transaction
volume: 2.2 mn kW
 Net-zero CO2 from our activities:
Reach 60％ (vs. FY2020)
 CO2 reduction contribution: 12 mn t

2030 goals• e-methane deployment of 1% (80 mn
Nm3/year)• Renewable power source transaction
volume: 6 mn kW• Net-zero CO2 in our activities• CO2 reduction contribution: 17 mn t

*1 Total from our assets (including projects targeted for investment), external suppliers, etc.
*2 CO2 emitted from city gas production facilities, buildings, etc. we use, and company vehicles. Target is based on FY2020.

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14①-5. Increase sophistication and resilience of supply network
Pursue DX and collaborations to enhance infrastructure resilience and provide value

FocusesTransform:

Provide better value to communities by increasing sophistication of network operations through DX, securely
acquiring city gas demand, further strengthening resilience, and collaborating with infrastructure operators, etc.

Value:Increase the sophistication of gaseous energy infrastructure operation to enhance safety, security, and reliability,
and contribute to carbon neutrality

What we’ve done

Compass
Transformation
23-25 actions
Actions
for FY2023-25

Launched Tokyo Gas Network

DX for greater sophistication in network operations andgreater value provided

 TGN, sharing the same Tokyo Gas
Group brand of “safety, security, andreliability,” took over Tokyo Gas’ duties
of expanding city gas use, ensuringsafety, and stably supplying gas.

Expanded use of city gas
 Firmly contributed to low-carbon
measures Actively developed city gas customers

Ensured safety & stable supply
 Serviced and replaced supply
infrastructure to improve supply
stability, transport capability, and safety

 Install smart meters to enhance safety and resilience Pursue DX to improve operations and realize smart safety

Further contribute to responsible transition

Where
wanttotobe
be in 2025
Where
wewe
want
2025
Providing better value to communities
through highly reliable energy infrastructure
and CO2 reductions

Expand use ofcity gas Reduce CO2 emissions by expanding the use of city gas,including investment in pipelines (contribution to carbon
neutrality) Further collaborate with local governments to increasevalue of city gas

Strengthen collaboration with infrastructure
operators & retailers
 Collaborate with electricity/communication infrastructure
operators and retailers to share/utilize infrastructure data for
greater operational efficiency and stronger disaster response
capabilities
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Strengthen
resilienceにCollaboration
with local govts

Collaboration with
infrastructure
operators, etc.

Zero major accidents
Zero major supply disruptions15

①-6. Strengthen revenue base & contribute to decarbonization overseas
Linking businesses to realize community-based energy supply

FocusesTransform: Replace assets and pursue inter-business collaborations. Accelerate investment in future revenue sources
and broaden range of revenue base.
Value:Contribute to community growth and decarbonization by implementing energy businesses tailored to eachmarketWhat we’ve done Structured portfolio so that morethan half is made up by LNG
upstream assets in Australia
 Focused on investment inindividual assets, while also
investing in operating companies■Aktina Solar Project in North America

Actions for FY2023-25
Core business development &growthExpand revenue with interbusiness links

North
America Acquire additional assets and operating companies
in shale gas, renewables, etc.
 Move into decarbonization sector (renewable gas)and related businesses (energy services, etc.)
 Acquire & enhance functions linking businesses(marketing, trading, etc.)

SE Asia Launch operation of LNG infrastructure projects
 Enter renewable energy market

Aust./
Europe Expand businesses in decarbonization, etc.,
including renewable energy

Businessbase Strengthen development capabilities by acquiring
operating companies, expand recruitment of local
talent Improve profitability through asset replacement, etc.
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Where we want to be in 2025
Evolve to a stable revenue base
Drive profits with shale gas business, while also
boosting revenue through renewable energy andother decarbonization businesses
Decarbonization,incl. renewables

Shale gas
LNG
infrastructure, etc.

Shift to locally developedorganization/talent16

4. Concrete Actions for the 3 Core Strategies② Fully roll out Solutions business17

②-1. Develop business brand
Increase profile & customer value by building an integrated brand in Solutions
Transform: Build an integrated brand in Solutions that redefines the value we provide as resilience, optimization, anddecarbonization
Focuses
Provide customers with clearly structured solutions under the integrated business brandValue:.

3 forms ofvalue provided

Resilience

Residential
customers

Optimization

Provide securityin everyday life

Strengthenbusiness
continuity

Corporate
customers

Increasebusiness
productivity

Providesmart living

eco-frRealizeiendly
livingDevelopresilient urban
infrastructure

Sustainableurban
development

Realize cities thatleverage local
characteristics andadvanced technologies

Underpinning corporate values:
Safety, Security & Reliability

Concepts
Residential customers
Provide optimal solutions aligned with their life
stages and changes in society
Corporate customers
Contribute to their continued growth by combining
our expertise with theirs

Enhanceenvironmental
value

Solutions

Community
customers

Decarbonization

Community customers
Energize communities through co-creation withstakeholders
Build up concrete solutions, and expand the solutions
ecosystem by leveraging our digital technology platform andby co-creating and partnering with other companies

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The new brand’s name, logo, etc. will be announced after finalization.

18

②-2. Enhance residential solutions to serve diverse customer needs
Serve residential customers by creating and providing value through diverse connections

FocusesTransform: Shift to a model aligned with the changes in customers’ lifestyles and energy use that are being driven by
population aging/shrinking, digital transformation, decentralization, etc.
Value:Provide solutions that fuse digital technologies and face-to-face engagement and are personalized to customer
needs

What we’ve done

Actions for FY2023-25

Where we want to be in 2025

Energy supply

Achieve real growth in energy business

Expand internal/external partnerships andco-creation to support customer lifestyles

 Expanded customer base withco-creation partners
 Launched Sasutena Denki &other new electricity plans

Expansion of
products/services
 Began offering products/solutions
for PV, storage batteries, etc.
 Rolled out repair & home support
services that leverage our lastmile strengths

Platform for value provision
 Redesigned platform forcustomer reception/management

 Build system of rate plans and services tailored to diverse
customer needs

Turn energy & environmental equipment into solutions
 Leverage decentralized resources (PV, storage batteries,EV) to build up solutions (demand response, etc.) throughalliances with diverse players

Implement personalized digital marketing that capitalizes
on our strengths in face-to-face engagement
 Leverage digital technology platform to expand interactive
communication with customers, by shifting to highly
responsive customer-centric processes/systems andoptimizing approaches based on data on customer
traits/behavior
 Strengthen customer relationships through solutions that
capitalize on our last-mile capabilities, and leverage TG
Octopus Energy’s digital technologies to create moreconnections (customer accounts)
Copyright©︎ TOKYO GAS Co., Ltd. All Rights Reserved.

Providesecurity ineverydaylife

Providesmart living

Realizeeco-friendly
livingTotal sales

100 bnapprox.
yen(more than +40% over 3 years)19②-3. Enhance corporate customer solutions for the era of decarbonization &decentralization
Provide decarbonization-centered solutions to solve the management challenges of customers nationwide
Transform: Become a co-creation partner in business transformation for customers by consolidating corporate sales
functions at Tokyo Gas Engineering Solutions (TGES) and strengthening nationwide implementation of
Focusessolutions sales in addition to energy supplyValue:Help customers to improve environmental value (decarbonization), strengthen business continuity, and enhancebusiness productivity

What we’ve done

Actions for FY2023-25

Where we want to be in 2025

Energy supply

Enhancement and nationwide deployment ofdecarbonization solutions

Decarbonization solutions partner thatsolves a wide range of management
challenges and co-creates the future forcustomers that operate offices nationwide

 Expanded supply of city gas, LNG,
and electricity in mainly the Tokyo
metropolitan area
 Became first in Japan to introduce
carbon-neutral LNG

Provision of solutions
 Provided engineering solutions
that capitalize on our user knowhow

Sales organization realignment
 Corporate sales
functions wereconsolidated at TGES Provide continuous, effective solutions, including in environmental
consulting, EPC/energy services, and O&M
 Enhance/provide decarbonization products and link them withcertification(Provide customer-tailored renewable energy [Solar Advance, biomass,
geothermal, etc.] and carbon credit offsetting products)
 Promote large projects combining energy supply anddecarbonization solutions (co-creation for decarbonization at Narita Airport)

Sophisticated decentralized energy networks
 Help customers to improve the value added of their equipment andoptimize energy management (VPP,*1 demand response, storage
batteries, CPPA,*2 corporate EV services, etc.)
 Ensure stable energy procurement/supply, expand range ofsolutions aligned with market conditions

Develop/deploy data-driven solutions
 Expand new solutions that help to streamline work processes andsave labor (Helionet Advance, O&M-DX, Joy series,*3 facility
management, etc.)
Copyright©︎ TOKYO GAS Co., Ltd. All Rights Reserved.

Enhanceenvironmental
value
Strengthenbusiness
continuity

Increasebusiness
productivity
Total sales

210 bnapprox.
yen(+10% over 3 years)*1: Virtual power plant (a system that provides integrated control of customer-owned power sources and uses them to balance electricity supply/demand) / *2: Corporate power purchase agreement (agreements in which corporate customers [businesses, local governments, etc.] make long-term purchases of electricity from utilities) / *3:
Central management software that helps customers with factories, etc. digitalize utility equipment and improve productivity

20

②-4. Expand community solutions through co-creation
Pursue urban development initiatives for achieving carbon neutrality to solve community challenges

FocusesTransform: Leverage our strong roots in the community to expand environmental/digital/educational solutions that bring out
the city’s vitality

Value:Co-create with local governments/businesses and experts to help realize secure, pleasant, and sustainablecommunities

What we’ve done
Expansion of community
collaboration
 Entered into comprehensive
agreements for carbonneutral urban developmentwith local governments andcity gas suppliers
 Established newcommunity electric powercompany (Utsunomiya
Light & Power)

Provision of solutions

Actions for FY2023-25
Expand solutions

Expand service area

 Enhance/provide environmental
products/solutions that arecompetitive (CNL, Joy series,
demand response, EV services,
environmental education
programs, commercial fuelcells, etc.)

 Expand service area basedon experience in working withlocal governments, etc.

•••

Co-develop solutions with local companies
Collaborate and share insights withacademia/NPOs
Construct marketing system Group-wide Contributed to urban
development with Smart
Energy Network (Tamachi,
Yaesu Smart Energy)

Increase resilience/efficiency of communitysupporting energy systems

Promotion of alliances Introduce advanced energy-saving technologies andunused/renewable energy

 Collaborated with local
companies and otherindustries

 Provide electricity supply/demand balancing functions,and supply heat/power during disasters
Copyright©︎ TOKYO GAS Co., Ltd. All Rights Reserved.

Where we want to be in 2025
Partner that helps communities/local
governments to advance decarbonization
measures
Sustainable urban
development

Launch community
support services in at least
ten areas
Develop resilient
urban infrastructure

Realize cities thatleverage local
characteristics andadvanced technologies

Leverage our strong roots in each community
to provide the best solutions to local needs
21

②-5. Engage in ESG-oriented real estate development
Provide security, comfort & environmental harmony by engaging in ESG-oriented real estate development

FocusesTransform: Strengthen competitiveness by stepping up ESG-oriented development, and realize stable growth and improved
earnings/efficiency by establishing a circular development model and expanding range of development
Value:Contribute to sustainable urban development by developing real estate that provides high levels of resilience,
comfort, and eco-friendliness

What we’ve done

Actions for FY2023-25

Achieved stable growth with adevelopment model focusedon long-term properties

Engage in ESG-oriented development

 Achieved stable growth by developing
long-term properties (mainly
offices/residences, which offer
stability) on land we own■Established/operated LATIERRA urban rental residences■Developed large-scale
office building in Tamachi

 Enhance eco-friendliness of properties
 Provide decarbonization solutions
 Strengthen BCP support andenvironmental/disaster prevention functions
 Acquire sustainability certification and make nonfinancial disclosures

Establish circulardevelopment model

Expand range ofdevelopment

 Establish a real estate fundunder concept of providing
ESG value Establish circular development
model that includes ourdeveloped properties in the fund,and accelerate ESG-oriented
development
 Achieve both business growthand greater efficiencies

 Launch development of ourGroup-led “circular future city”
in Shin-Toyosu
 Join in ESG-oriented
development project inAustralia, a leader in ESGoriented development
 Expand asset holdings toinclude distribution facilities
etc.

Where we want to be in 2025
Contribute to sustainable urban
development and co-create value withinvestors, using ESG-oriented
development as a growth engine
More than 10% profit growth over 3 years
Real estate fund size: 40 bn yen
Launch large-scale development in
Shin-Toyosu■Conceptual image of Shin-Toyosu development

The project will aim for net-zero CO2 emissions as a “circular future city”
Copyright©︎ TOKYO GAS Co., Ltd. All Rights Reserved.

22

4. Concrete Actions for the 3 Core Strategies③ Realize a flexible corporate culture resilient to change23③-1. Advance DX in ways that enhance value provided
Leverage digital technology & reform organizational culture to achieve our transformation
Transform: Develop a data/digital technology platform underpinning DX, increase our pool of DX talent by stepping up
recruitment of external talent and actively investing in training, and establish a DX promotion committee to lead our
FocusesDX efforts
Implement focused DX actions (3 pillars) to realize a lean corporate culture that continuously provides value toValue:customers and is resilient to change

What we’ve done
Focused actions
 Implemented DX measures ineach value chain function

Actions for FY2023-25

Where we want to be in 2025

3 DX pillars: Implement actions that make heavy use of digital tools andstrongly drive transformation(1) Construct digital trading platform that helps to achieve bothsupply/demand balancing and profit creation(2) Improve CX by integrating and standardizing customer
management system platform(3) Improve productivity by standardizing/consolidating back-office
operations and visualizing work processes/performance

Enable continuous provision ofvalue to customers by improving
digital technology capabilities
across the entire value chain

Develop data/digital technology platform Begin operating data/digitaltechnology platform DX leaders: 3,000
High-level/core DX talent: 500

Data/digitaltechnology platform Built an integrated platform forGroup-wide data analysis



Increase pool of DX talent and strengthen inter-organization
coordination through DX promotion committee

Talent &organization
 Established Digital Innovation
Division to lead Group-wide DX Systematized DX talent training(800 DX leaders)Strengthen data platform for value co-creation through internal/external
data coordination and for AI-enhanced sophisticated processing
Build digital technology platform for supporting implementation of focused DX
actions (use Octopus Energy’s technologies)Enhance DX training that emphasizes practical expertise and actively invest
in training
Increase recruitment of high-level DX talent and develop career paths
Establish DX promotion committee chaired by CDO
Copyright©︎ TOKYO GAS Co., Ltd. All Rights Reserved.

Realize a highly agile
corporate culture24③-2. Implement back-office operation reforms & CRE strategy
Improve earning power through Group-wide action for standardizing/consolidating back-office operations andimplementing CRE strategy

Transform: Improve efficiency and strengthen governance through Group-wide actions such as standardizing/consolidating
back-office operations and optimizing use of CRE*
Focuses*Corporate real estate
Use digital technologies to visualize work processes/performance for greater efficiency
Value:Improve earning power and management agility by lowering fixed (indirect) costs through reduction of back-office
operations

Current state
Headquarters

Organizations

Actions for FY2023-25
GroupcompaniesHR

Accounting

Overlap

Strategically assign personnel

Strategically assign personnel

Standardize/consolidate
routine processes

Establish shared service center

Where we want to be in 2025
Improve management agility &earning power
Doubleproductivity

Overlap

Reduceback-office
operations
by 40-50%

Provide cross-training
Planning
Integrate systems
OthersSystems

Workplaces

Expand areas where
automation is used

Eliminate processes that overlap or have room for improvement, and review specs

Jumble of different,
compartmentalized systems

Decentralized functions means workplace
operations are also decentralized

Analyze work
processes

Strongergovernance

Personnel
assigned to
growth areas

Use digital technologies to visualize work
processes/performance

Develop/cross-train high-level specialists in back-office operations

Promotion of optimal CRE use Make optimal use of CRE based on a review of businesses/operations
 Maximize revenue through sophisticated use, including office consolidation, selling
off properties, and externalCopyright©︎leasingTOKYO GAS Co., Ltd. All Rights Reserved.

Business
continuity isensuredFlexibility inorganizational
realignment25

③-3. Improve value of human capital
Achieve growth both as individuals and as a Group by exercising human capital management

FocusesTransform: Acquire and place talent in ways aligned with the management strategy, develop platform for utilizing diverse talent,and expand opportunities for employees to take on challenges and grow as individuals
Value:Grow as a group of people who take initiative, respect the diverse opinions and personalities of one another, andcontinuously take on challenges

3 Promises(Compass 2030)

Actions for FY2023-25
Strengthen ability to address talent shifts and business changes

We will produce
work that will havea major impact onsocietyStrategictalentplacement Alignment of HR planning, optimal placement, and reskilling(skills/competencies for contributing to DX and business development indecarbonization, overseas operations, etc.) with management strategy
 Acquisition of high-level specialists and talent system development,
including through M&A

Knowledge/experience diversity, equity, and inclusion*1

We will create a venue
for encounters withdiversity and friendly
competition

Turning
diversity
into astrength

 Promote utilization of women and young employees (increase
placement in positions of responsibility, promote childcare leave for men,use femtech*2 to enhance understanding) and workstyles notconstrained by time/place Actively recruit experienced people globally and increase theirplacement in positions of responsibility

Where we want to be in 2025
Promoting self-learning
Reskilling/retraining participation
rate: 100%*3

Promoting childcare leave taking by
men & utilization of womenMen’s childcare leave-taking (1 mth)rate: 100%
(double in 3 years)*4
Steadily increase female representationin management(at least +15% over 3 years)

Promote professional talent growth/challenge-taking and self-led
career formation

We will emphasize
the self-fulfillment ofeach person

Growing by
taking on
challenges

 Provide opportunities to build career/skills in ways reflecting employee
aptitude and will, using talent management systems and data Encourage employees to personally explore opportunities bypromoting/expanding side jobs, internal recruitment, and internal
entrepreneurialism*1 A culture where diverse people can exercise their talents to the fullest, respect one another, and engage in friendly rivalry,leading to the creation of new value. *2 A set of Copyright©︎tools for helping
women
to Ltd.
dealAllwith
femalehealth challenges (menstruation,TOKYO
GAS Co.,RightsReserved.
childbirth, etc.).

Improving engagement
Regularly measure engagement
indicators and reflect results inimprovement measures*3 Rate of participation in training and certification programs, etc. for acquiring/refreshingskills (including reskilling). *4 The estimated rate of childcare leave-taking by eligible men(excluding special leave) for FY2022 is approx. 50%.

26

③-4. Enhance sustainability management
Focusing management to realize a sustainable society through our business value chain

FocusesTransform: Redefine our set of material issues by reviewing the important social issues that need to be addressed, based on
the impacts that society and our Group have on each other; manage the material issues based on indicators
Value:Take on the challenge of solving social issues through our business activities, and actively discuss with our
stakeholders

Material issues

Actions for FY2023-25

Where we want to be in 2025
Progress toward solving
challenges

CriticalAnalyze theirmateriality

Sort social
issues*Society’s impacts on us

Society/Customers
1. Responsibly transitioning to a decarbonizedsociety
2. Protecting the global environment
3. Securing stable energy supply
4. Enhancing safety & disaster prevention,
resilient regional development
5. Contributing to well-being of people andcommunities

Tokyo Gas Group (Us)
6. Realizing an organization that embraces
diverse talent●
7. Respecting human rights across the entire
value chain Execute the 3 core
strategies
1

Achieve both stable energy
supply & decarbonization

2

Fully roll out Solutions
business

3

Realize a flexible corporate
culture resilient to change Track progress based on
indicators
 Strengthen ESG initiatives(proactive disclosure)*A long list of issues will be formulated with reference to international standards/guidelines(such as GRI standards), etc. Strengthening of governance will be positioned as aprerequisite for materiality initiatives.

Significant

Our impacts on society

CriticalSociety/Customers
 CO2 emissions reduction contribution:
12 mn tons
 Reduction of CO2 emissions from ouractivities: 60% (vs. FY2020)
 Enhance circularity of equipment & facilities(gas pipes, etc)
 Address procurement risks
 Maintain record of no major city gas
accidents or supply disruptions
 Provide services supporting physically &mentally enriching lives

Tokyo Gas Group (Us) Measure Group employee engagement
indicators and make improvements
 Seeking to ensure human rights are upheld
throughout our supply chain
Examples of key indicators

Copyright©︎ TOKYO GAS Co., Ltd. All Rights Reserved.

27

③ -5. Implement financial strategy
Control balance sheet and cash flow to strengthen the financial base supporting our growth

FocusesTransform: Manage business portfolio according to the ratio of expected returns (WACC), with consideration to eachsegment’s characteristics
Value:Achieve long-term growth and increase enterprise value by making growth investments while maintaining financial
soundness

Actions for FY2023-25

Where we want to be in 2025

Create stable cash inflows

Cash inflows

Soundness &efficiency

 Maximize earning power of internal companies & major business subsidiaries by
having them stand on their own feet
 Create operating cash flows that exceed the preceding medium-term
management plan (FY2020-2022)

Quantitative
indicators

Maintain a lean & resilient balance sheet that supports growth investment

Segment
profits*1

 Ensure financial soundness through investment discipline mindful of credit ratings
and through cash flow management
 Improve asset efficiency by investing in and selling assets based on their earning
power

Pursue business management aimed at increasing enterprise valueEnterprise value
growthinvestment

 Manage asset efficiency based on expected returns of each segment
 Engage in sophisticated investment capacity management by refining cash flow
forecasts
 Accelerate decarbonization investment through quantitative assessment ofenvironmental value

Total return ratio of approx. 40% (general goal for each fiscal year)

Shareholder
returns

PolicyNow(FY2020-22
average)

FY2025130 bn yen

150 bn yen

ROA*1

3.0％

approx. 4％

ROE*1

7.3％

approx. 8%

D/E ratio

0.91

approx. 0.9(operating profit+ equity incomeof subsidiaries)*1 Profits after revision of sliding time lag effects

To be applied starting with fiscal year-end dividends for year ending March 2024

 Acquisition of treasury stock for retirement will be considered as one way of providing shareholder return in addition to dividends and aims for total
return ratio (ratio of dividends on current consolidated net income and acquisition of own shares) will be around 40% in each fiscal year.
 With regard to dividends, we will continue to provide stable dividends and will gradually increase dividends in accordance with growth while
comprehensively taking into consideration the profit level over the medium- to long-term.
Copyright©︎ TOKYO GAS Co., Ltd. All Rights Reserved.

28

5. KPIs & Investment Plan29

5. KPIs & Investment Plan
Financial & Environmental
Indicators

Now(FY2020-22 average)

FY2025Business portfolio composition: Operating profit + equity incomeof subsidiaries

Segment profits*1(operating profit +equity income ofsubsidiaries)

Financial

Environmental

ROA*1

130 bn yen

150 bn yen

3.0％

approx. 4%

ROE*1

7.3％

approx. 8%

D/E ratio

0.91

approx. 0.9

CO2 reduction
contribution

Overseas

25%

Solutions, etc.

Overseas

6 mn tons*2

12 mn tons*3

Overseas
25%

Cash Flow & Investment Plan

FY2020-22(estimated)

FY2023-25

Solutions, etc.
25%

Cumulative operating cash flow
(Profit attributable to owners ofparent + depreciation)

960 bn yen

1,100 bn yen

Energy(gas+electricity+
networks)
50%

Investments

530 bn yen(190 bn yen)

Infrastructure
investments

370 bn yen

350 bn yen

Total (3 years)

900 bn yen

1,000 bn yen*1 Profits after revision of sliding time lag effects *2 Average for FY2020-21, Japan only

15%
Solutions, etc.
25%
EnergyGrowth investments(portion for
decarbonizationrelated investments)*3 Includes overseas

650 bn yen（230 bn yen)25%

(gas+electricity+
networks)

Energy(gas+electricity+
networks)

50%

60%

Now

FY20252030 Vision

130 bn yen

150 bn yen

200 bn yen

Copyright©︎ TOKYO GAS Co., Ltd. All Rights Reserved.

30

Standing by every person and dedicating
ourselves to the society,we shall be the energy that weaves the future.

< Cautionary Statement regarding Forward‐looking Statements >Statements made in this presentation with respect to Tokyo Gas’s present plans, forecasts, strategies and beliefs, andother statements herein that are not expressions of historical fact are forward‐looking statements about the future
performance of the Company. As such, they are based on management‘s assumptions and opinions stemming fromcurrently available information and therefore involve risks and uncertainties.
The Company’s actual performance may greatly differ from these projections, due to these risks and uncertainties which
include without limitation general economic conditions in Japan, crude oil prices, the weather, changes in the foreignexchange rate of the yen, rapid technological innovations and the Company’s responses to the progress of deregulation.