Financial Highlights

Overview by Segment

Millions of yen
except per share amounts

For the Years ended March 31

Net sales
Operating income
Net income

Thousands of U.S. dollars except
per share amounts

2008

2007

2006

2008

1,487,497

1,376,958
162,315
100,700

1,266,502
112,346
62,115

14,874,970

70,04942,487700,485
424,875

Gas Sales
Tokyo Gas uses its three LNG terminals along the shores of Tokyo Bay to gasify LNG, its
main gas resource. It sells city gas to more than 10 million customers, primarily in the Kanto region, through a pipeline network of more than 50,000 km. In future, we will continue
to ensure the reliability of supply and aim to capture new demand by extending our pipeline
effectively with a strong focus on achieving a good return from our investment.
(External sales ratio: 97.2%)

Sales Ratio
66.6%

15.94

37.50
35.69
293.11
8.00

23.48
21.70
270.467.00

0.16

1,692,635
465,896806,046

1,693,899
496,740
728,232

17,036,512

15.50
289.49
8.00

0.16
2.89
0.08

n The gas sales volume increased by 6.8% over the previous fiscal year to 14,215 million m .
n Gas sales volume increased in all sectors, with 2.3% growth in the residential sector, 7.4% in theindustrial sector, 5.2% in the commercial, public and medical sectors, and 17.6% in wholesaling toother gas companies.
n Due to higher unit prices under the gas rate adjustment system and the increase in the sales volume,sales increased by 8.8% over the previous fiscal year to ¥1,087.0 billion.
n Operating income declined by 45.1% to ¥111.7 billion due to a large rise in gas resource costs resulting from the rise in crude oil prices.

(¥billion)■ ShareOperating Income■

1,200300

900200600

3Amounts per share of common stock
Net income
Net income (Diluted)
Net assets
Cash dividends applicable to the year

Share/Operating Income

100300Operating Income Ratio
82.0%

0’06

’07

0’08

At Year-end (March 31)

Gas Appliance Sales

Total assets
Long-term debt due after one year
Net assets

1,703,651
487,138
780,455

4,871,380
7,804,553

RatiosOperating cash flow
Operating income to net sales
Net income to net sales
ROEROA
Equity Ratio
D/E ratio

184,909

233,842
11.8%7.3%
13.2%
5.9%
47.0%
0.66

4.7%
2.9%
5.4%
2.5%
45.1%
0.73

1,849,088

198,492
8.9%
4.9%
9.0%
3.7%
43.0%
0.77

4.7%
2.9%
5.4%
2.5%
45.1%
0.73

Notes: 1.	U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥100=U.S.$1, the Tokyo foreign exchange market rate as of March 31, 2008.
2. Operating cash flow = net income + depreciation**including amortization of long-term prepayments
3. ROE = net income/total equity (average of positions at start and end of fiscal year)
4. ROA = net income/total assets (average of positions at start and end of fiscal year)
5. D/E ratio = interest-bearing debt (year-end)/total equity (year-end)

We sell gas cooktops, water heaters, the TES system (a gas air conditioning system using
hot water) and other products that we procure from gas appliance manufacturers. The sales
are mainly handled by the service network of Tokyo Gas, LIFEVAL, Enesta and Enefit.
(External sales ratio: 97.6%)

8.1%
2.1%

n Although sales of high value-added products were firm, overall sales declined by 2.3% to ¥132.3 billion due to the impact of lower sales of kitchen water heaters, caused by our switch to more efficientwater heaters.
n Operating income increased by 148.8% to ¥2.9 billion due to the decline in operating expenses andother factors.

3.5%
0.6%

n There was a reduction in the number of new installations. Sales fell by 3.2% over the previous fiscal
year to ¥57.3 billion and operating income declined by ¥900 million to ¥800 million.

(¥billion)

1,500
1,200

Operating Income/Operating
Income to Net Sales (¥billion)

1,487.5 200
1,377.0
1,266.5
1,190.8
1,151.8
150

40
162.3

152.3
145.3

30

Net Income/Net Income to Net
Sales (¥billion)

ROE／ROA

150

2020120

16900

90

112.3
100600

20
13.2

12.2
8.9

50

300

84.0

11.8

60

70.0
4.7

1030

7.1
44.8
3.9

62.1
4.9

7.3
42.5
2.9

This segment is mainly involved in leasing, management and the like for the Shinjuku
Park Tower and other office buildings conducted by our consolidated subsidiary, TokyoGas Urban Development Co., Ltd. In addition, it owns land mainly in Toyosu, Tamachi,
Ginza and Gofukubashi.
(External sales ratio: 35.1%)

(%)

13.5
121288

7.6

44

13.2

2.7

5.9
3.7

5.4
2.5

0’04 ’05 ’06 ’07 ’08

0’04 ’05 ’06 ’07 ’08

All graph data for the year ended March 31, 2008

600’04 ’05 ’06 ’07 ’08

00’04 ’05 ’06 ’07 ’08
ROE
ROA

12100

850

4This segment includes district heating and cooling, energy services, LPG sales, industry gas
sales, credit and leases, system integration services and comprehensive engineering services.
(External sales ratio: 73.7%)
n Sales in this segment increased by 12.2% over the previous fiscal year to ¥320.4 billion. Reasons forthe higher results include the sustained expansion of the on-site energy service business and the higher
sales in the LPG division, caused by a combination of rising LPG prices and a higher LPG sales volume.
n Operating income declined by 7.8% to ¥12.8 billion due to a number of factors, including the increased
initial depreciation burden characteristic of the on-site energy service business and rising LPG prices.

Segment sales include intra-group transactions.
All graph data for the year ended March 31, 2008

19.6%
9.4%

’06

’07

’08

0120

1290

960

630

3’06

’07

’08

060

1645

1230

815

40

Other Business

9.0
5.0

2.2%
5.8%

n Sales increased by 3.3% over the previous fiscal year to ¥35.2 billion due to the growth in revenues
from facility management. Operating expenses were at about the same level as in the previous period, so operating income grew by 18.3% to ¥8.0 billion.

16100.7

1500

Real Estate Rental
Net Sales

160

Related Construction
This segment carries out new construction (e.g., the installation of gas pipes/valves on thesites of customers who use gas within our service area) and expansion work in existingbuildings, for example, to increase the number of gas valves.
(External sales ratio: 93.4%)

200’06

’07

’08

030

400
300

20200
10100
0’06

’07

’08

07