January 31, 2023

Consolidated Financial Results Bulletin for the 3rd Quarter Ended December 31, 2022
(J-GAAP)Tokyo Gas Co., Ltd.
Securities code:9531
Stock listings:(URL https://www.tokyo-gas.co.jp/IR/english/index.html)
Tokyo Stock Exchange, Nagoya Stock Exchange
Representative:
Mr. UCHIDA Takashi, Representative Corporate
Executive Officer, President and CEO
Contact:
Mr. KOMORI Rikiya, Chief Manager,
Location of head office: Tokyo
Consolidated Settlements Sect.
Scheduled date of the filing of quarterly report:
February 14, 2023
Scheduled date of the start of dividend payments:—
Preparation of 3Q earnings presentation material (yes/no): Yes
Holding of 3Q earnings announcement (yes/no):Yes (for institutional investors)(Amounts are rounded down to the nearest million yen)

1. Consolidated Performance for 3rd Quarter (from April 1, 2022 to December 31, 2022)(Unit: million yen)(% of change from the corresponding period of previous year)(1) Consolidated Business Performance
Net sales

Operating profit

Profit attributable toowners of parent

Ordinary profit

Nine months ended
Dec. 31, 2022

2,300,194

63.9%

235,692

341.5%

238,298283.6%

168,097264.7%

Nine months ended
Dec. 31, 2021

1,403,292

13.7%

53,378-19.5%

62,121

1.9%

46,0888.6%

Note: Total comprehensive income
Nine months ended December 31, 2022: 252,736 million yen (666.8%)

Profit per share

Nine months ended December 31, 2021: 32,961 million yen (34.5%)

Diluted profit
per share

Nine months ended
Dec. 31, 2022

386.93 yen—

Nine months ended
Dec. 31, 2021

104.81 yen—

Note: Figures for the nine months ended December 31, 2021, represent figures after retroactive application following a change in accounting
policies.

(2) Consolidated Financial Position(Unit: million yen)
Total assets
As of Dec. 31, 2022
As of Mar. 31, 2022

3,649,413
3,187,627

Total net assets

Equity ratio

1,484,037
1,281,150

39.9%
39.3%

Reference: Shareholders’ equity
As of December 31, 2022: 1,456,764 million yen
As of March 31, 2022: 1,251,781 million yen
Note: Figures for the fiscal year ended March 31, 2022, represent figures after retroactive application and restatement following a change inaccounting policies and changes in presentation, respectively.

2. Dividend
Dividend per share (Unit: yen)
End of 1Q
FY2021 ended Mar. 31,
2022
FY2022 ending Mar. 31,2023
FY2022 ending Mar. 31,
2023 (Forecast)End of 2Q

End of 3Q

—

30.00

—

—

32.50

—

Note: Revision to the dividend forecast that has been disclosed lastly: No

End of 4Q

Annual

35.00

65.00

32.50

65.00

3. Consolidated Results Forecast for FY2022 ending March 31, 2023 (April 1, 2022 - March 31, 2023)(Unit: million yen)(% of change from the corresponding period of previous year)
Net sales
Full-year

3,377,000

56.7%

Operating profit
331,000

159.6%

Ordinary profit
325,000

138.1%Net profit
attributable toowners of parent

Profitper share

236,000

543.54 yen

146.6%

Notes: 1. Revision to the consolidated results forecast that has been disclosed lastly: Yes
2. The year-on-year percentage changes represent the percentage changes calculated by retroactively applying the change in accounting
policies to the figures for the fiscal year ended March 31, 2022.

*Notes(1) Significant changes in consolidated subsidiaries (changes in specified subsidiaries resulting in change of scope of
consolidation during the quarter) (yes/no): No
Reference: Scope of consolidation and application of equity method
Number of consolidated subsidiaries: 101 (Increased by 1 company and decreased by 13 companies)
Number of subsidiaries and affiliates accounted for by equity method: 15 (Decreased by 1 company)(2) Application of accounting treatment peculiar to quarterly consolidated financial statement preparation (yes/no): Yes
Note: Please see page 9 of the Attachment, “2. Consolidated Financial Statements and Main Notes: (3) Notes on
consolidated financial statements (Application of accounting treatment peculiar to quarterly consolidated
financial statement preparation)” for details.
(3) 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: Yes
3) Change in accounting estimates: No4) Retrospective restatements: No(4) Number of issued shares (common stock)(Unit: share)
1) Number of issued shares at end of period(including treasury stock):

Dec. 31, 2022

434,875,059

Mar. 31, 2022

440,996,559

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

Dec. 31, 2022

1,452,421

Mar. 31, 2022

1,448,431

3) Average number of shares during period:

Apr. – Dec. 2022

434,443,941

Apr. – Dec. 2021

439,714,082* 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. The consolidated and non-consolidated results forecasts include numerous elements of uncertainty, including the impactof the COVID-19 pandemic and the Russia-Ukraine situation. Therefore, the forecasts are subject to drastic changes
depending on future development. For details of the above forecasts, please refer to “1. Overview of Business
Performance, etc. (2) Future outlook” on page 4 of the Attachment.
2. The information related to this Financial Results will be posted on the Web site of the Company.

Non-Consolidated Results Forecast for FY2022 ending March 31, 2023 (April 1, 2022 - March 31, 2023)(Unit: million yen)(% of change from the corresponding period of previous year)
Net sales
Full-year

3,018,800

56.3%

Operating profit
231,200

345.3%

Ordinary profit
228,300

375.8%Net income
163,900

333.7%

Profitper share
377.49 yen

Notes: 1. Revision to the non-consolidated results forecast that has been disclosed lastly: Yes
2. The year-on-year percentage changes represent the percentage changes calculated by retroactively applying the change in accounting
policies to the figures for the fiscal year ended March 31, 2022.

Contents of Attachment
1.

Overview of Business Performance, etc............................................................................................................................. 2(1)
Overview of business performance of the 3rd quarter............................................................................................. 2(2)
Future outlook ............................................................................................................................................................. 4
2. Consolidated Financial Statements and Main Notes ........................................................................................................ 5(1)
Consolidated balance sheets ....................................................................................................................................... 5(2)
Consolidated statements of income and comprehensive income ............................................................................. 7
Consolidated statement of income ............................................................................................................................. 7(Nine months ended December 31, 2022)
Consolidated statement of comprehensive income ................................................................................................... 8(Nine months ended December 31, 2022)(3)
Notes on consolidated financial statements ............................................................................................................... 9(Note on going concerns’ premise) ............................................................................................................................. 9(Additional information) ............................................................................................................................................. 9(Significant changes in shareholders’ equity)............................................................................................................ 9(Application of accounting treatment peculiar to quarterly consolidated financial statement preparation)...... 9(Change in accounting policies) ................................................................................................................................ 10(Changes in presentation) ......................................................................................................................................... 10

1

1. Overview of Business Performance, etc.
(1) Overview of business performance of the 3rd quarter<Summary by segment>
In November 2021, the Company formulated the Compass Action, a detailed roadmap for achieving Compass 2030,
the Group’s management vision, and on April 1, 2022, transitioned to a holding company structure. Following thisdevelopment, the Company has decided to change its reporting segments from the five segments of “gas,” “electric
power,” “overseas,” “energy related,” and “real estate,” which it had used until FY2021, to four reporting segments of“energy solution,” “network,” “overseas,” and “urban development,” starting in FY2022.
The year-on-year comparison is based on the previous reporting segments since it is difficult to create data of net
sales and profits of the nine months ended December 31, 2021, using the new reporting segments.
Nine months ended December 31, 2022
Energy solution
Sales
Operatingexpenses
Segment
profit/loss

Network(Unit: million yen)
Urban
Overseasdevelopment
128,191
46,264FY2022

2,111,447

244,204(% of total)(83.4%)(9.7%)(5.1%)(1.8%)FY2022

1,904,781

263,379

69,77733,862(% of total)(83.8%)(11.6%)(3.1%)(1.5%)FY2022

206,696-19,175

63,994

12,996(% of total)(78.1%)(-7.2%)(24.2%)(4.9%)
Note: Figures for sales include internal transactions. Figures for operating expenses do not include expenses thatcannot be allocated to specific segments. Figures for segment profit are adjusted against the amount based on
operating profit/loss of consolidated financial statements plus or minus investment income or loss on equity
method.
Comparison with the nine months ended December 31, 2021
(Unit: million yen)
Electric
EnergyGas
Overseas
Real estate
Otherspower
relatedFY2022
1,548,331
599,683
128,211260,065
46,26473,804(% of total)(58.3%)(22.6%)(4.8%)(9.8%)(1.7%)(2.8%)FY2021
907,844308,615
62,430227,548
43,34873,781
Sales(% of total)(56.0%)(19.0%)(3.8%)(14.0%)(2.7%)(4.5%)
Amount of change
640,487
291,068
65,781
32,5172,916
23(Rate of change)
70.6%
94.3%
105.4%
14.3%
6.7%
0.0%
FY2022
1,396,421
582,834
68,330245,639
33,68965,918(% of total)(58.3%)(24.3%)(2.9%)(10.3%)(1.4%)(2.8%)
875,625
296,988
44,450216,622
31,24572,424
Operating FY2021
expenses (% of total)(57.0%)(19.3%)(2.9%)(14.1%)(2.0%)(4.7%)
Amount of change
520,796285,846
23,88029,0172,444-6,506(Rate of change)
59.5%
96.2%
53.7%
13.4%
7.8%
-9.0%
FY2022
151,910
16,84965,461
14,425
13,1697,916(% of total)(56.4%)(6.2%)(24.3%)(5.3%)(4.9%)(2.9%)
32,218
11,626
21,70910,925
12,818
1,415
Segment FY2021
profit(% of total)(35.6%)(12.8%)(23.9%)(12.0%)(14.1%)(1.6%)
Amount of change
119,692
5,223
43,752
3,500
351
6,501
(Rate of change)
371.5%
44.9%
201.5%
32.0%
2.7%
459.3%
Notes:
1. 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 adjusted against the amount based on operating
profit/loss of consolidated financial statements plus or minus investment income or loss on equity method.
2. Figures for the nine months ended December 31, 2021, represent figures after retroactive application following achange in accounting policies.

2City gas sales volume<Consolidated City Gas Sales Volume, etc.>
Apr. – Dec. 2022 Apr. – Dec. 2021
Change% change
No. of customers for cityThousands
8,688
8,733
-45
-0.5
gas retail sales
Thousands
No. of customers (meters)
12,28912,162127
1.0
3Residential
1,834
1,906
-72
-3.8
Mil. mCommercial
1,579
1,545
34
2.2
Mil. m3
3
Industrial
4,509
4,532
-23
-0.5
Mil. mSubtotal
6,088
6,076
12
0.2
Mil. m3
3
Supplies to other utilities
1,162
1,149
13
1.2
Mil. m
3
Total
9,084
9,131
-47
-0.5
Mil. mAverage temperature
°C
19.5
19.2
0.3
—
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 as a gas pipeline service provider.
3. “Commercial” indicates sales to commercial, public and medical institutions.
4. City gas sales volumes are on the basis of 45MJ/m3.
5. The figures for the nine months ended December 31, 2021, represent figures after retroactive application following
a change in accounting policies.
< Consolidated Electric Power Sales Volume, etc.>
Apr. – Dec. 2022 Apr. – Dec. 2021
Change% change
No. of customers for
Thousands
3,314
2,934
380
12.9
electric power retail sales
Electric Retailmillion kWh
8,202
7,687
515
6.7
power
Wholesale etc. million kWh
17,202
12,339
4,863
39.4
sales
million kWh
25,40420,025
5,379
26.9
volume Total
Note: No. of customers for electric power retail sales indicates the number of billed customers for electric power retailsales.
<Foreign Exchange Rate and Crude Oil Price>
Apr. – Dec. Apr. – Dec.
Change¥/$ rate2022
2021
136.50111.1425.36

Crude oilprice($/bbl)3

Apr. – Dec.
2022
107.87

Apr. – Dec.
2021
73.97

Change33.90

(2) Future outlook
a. Consolidated city gas sales volume forecast for FY2022
FY2022
FY2021
Change% change(Forecast)(Results)
Mil. m3
2,936
3,083
-147
-4.8
City gas Residential
sales
OthersMil. m3
9,768
10,063-295-2.9
3volume Total
Mil. m
12,704
13,146-442-3.4
Average temperature
°C
16.5
16.2
0.3
—
Notes:
1. City gas sales volumes are on the basis of 45MJ/m3.
2. The results figures for FY2021 represent figures after retroactive application following a change in accounting
policies.
b. Consolidated electric power sales volume forecast for FY2022
FY2022(Forecast)
Total electric power sales
million kWh
34,849volumec. Consolidated earnings forecast for FY2022
Net sales

FY2021(Results)

Change28,2886,561% change
23.2(Unit: hundred million yen)

Operating profit

Ordinary profit

Profit attributableto owners of parent

33,770
3,310
3,250
2,360
21,548
1,275
1,364
957
Change12,222
2,035
1,886
1,403
% change
56.7%
159.6%
138.1%
146.6%
Note: The results figures for FY2021 represent figures after retroactive application following a change in accounting
policies.
FY2022 (forecast)
FY2021 (results)< Foreign exchange rate and crude oil price forecast for FY2022>
FY2022
FY2021
Crude oil
Change(Forecast)(Results)¥/$ rate
price($/bbl)137.38112.3924.99

4FY2022(Forecast)
103.40

FY2021(Results)
77.15

Change26.25

2. Consolidated Financial Statements and Main Notes(1) Consolidated balance sheets(Million yen)
As of March 31,2022

As of December 31,2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsLease receivables and investments in leases
Securities

179,769

307,163364,683

546,741

17,824
10

17,5109

Merchandise and finished goods
Work in process

3,467
12,083

6,425
22,914

Raw materials and supplies
Other current assets

67,135
258,610

127,602208,267

Allowance for doubtful accounts
Total current assets-3,714-1,226

899,870

1,235,407

Non-current assets
Property, plant and equipment
Buildings and structures, net

338,517338,381

Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net

892,515
14,484

930,590
10,494

Land
Leased assets, net

192,455
5,899

197,174
9,519

Construction in progress

125,501

112,044

1,569,373

1,598,204

Goodwill
Other intangible assets

6,018
294,296

5,335
320,517

Total intangible assets

300,315

325,852

Investment securities
Long-term loans receivable236,303
48,653283,806
63,349Retirement benefit asset
Deferred tax assets

5,864
34,6707,584
41,817

Other investments
Allowance for doubtful accounts

94,223-1,647

98,957-5,566

Total property, plant and equipment
Intangible assets

Investments and other assets

Total investments and other assets
Total non-current assets
Total assets

5418,068

489,948

2,287,757

2,414,005

3,187,627

3,649,413

(Million yen)
As of March 31,2022

As of December 31,2022

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings

76,2296,385

97,640
6,824

Current portion of bonds payable
Current portion of long-term borrowings

48,97220,00072,660

Income taxes payable
Other current liabilities

33,830386,573

69,830479,801

Total current liabilities

551,990746,757

Non-current liabilities
Bonds payable

548,619549,357

Long-term borrowings
Deferred tax liabilities

568,725
29,641

615,328
32,684Retirement benefit liability
Provision for share awards for directors (and otherofficers)
Provision for gas holder repairs
Provision for safety measures
Provision for contract loss in regards to appliancewarranties
Provision for point card certificates
Asset retirement obligations

66,19564,942

84

155

3,427
637

3,335
547

2,620

2,203

531
27,692382
31,640

Other noncurrent liabilities

106,310118,039

Total non-current liabilities

1,354,486

1,418,618

1,906,477

2,165,375

Share capital
Capital surplus

141,844846

141,844-

Retained earnings
Treasury shares

1,076,184-3,524

1,197,965-3,651

Total shareholders' equity

1,215,350

1,336,158

18,86630,900-11,904
32,545-31,874
122,277

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans-3,076-697

Total accumulated other comprehensive income

36,430120,605

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

6

29,36827,273

1,281,150

1,484,037

3,187,627

3,649,413

(2) Consolidated statements of income and comprehensive income
Consolidated statement of income (For the nine months)(Million yen)
For the nine months
ended December 31,2021

For the nine months
ended December 31,2022

Net sales
Cost of sales

1,403,292
1,165,380

2,300,194
1,869,341

Gross profit

237,911430,853

Selling, general and administrative expenses

184,532

195,161

Operating profit

53,378

235,692

864

1,460

1,255

2,547

4,502

6,206

9,626
5,987

7,771
6,424

Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Gain on derivatives
Miscellaneous income

11,435

7,315

Total non-operating income

33,672

31,724

Interest expenses
Loss on derivatives

10,9183,293

11,037
8,771

Miscellaneous expenses

10,717

9,308

Total non-operating expenses

24,92929,117

Ordinary profit

62,121

238,298

Extraordinary income
Gain on sale of investment securities

Non-operating expenses

3,691

3,785

Gain on sale of businesses

-

3,506

Total extraordinary income

3,691

7,292

-

2,595

Extraordinary losses
Loss on valuation of investment securities

-

2,595

Profit before income taxes

Total extraordinary losses

65,812242,996

Income taxes

18,63874,185

Profit47,174

168,810

Profit attributable to non-controlling interests

1,086

713

Profit attributable to owners of parent

46,088168,097

7

Quarterly Consolidated Statements of Comprehensive Income (For the nine months)(Million yen)
For the nine months
ended December 31,2021
ProfitOther comprehensive income
Valuation difference on available-for-sale securities

For the nine months
ended December 31,2022

47,174

168,810-2,453

12,008Deferred gains or losses on hedges
Foreign currency translation adjustment-26,741
17,475-24,627
85,205Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income-5,905

2,344

3,411

8,995

-14,21383,925Comprehensive income

32,961

252,736

Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

39,329252,272-6,368464

8(3) Notes on consolidated financial statements(Note on going concerns’ premise)
Not applicable(Additional information)<Accounting estimates on the impact of COVID-19>
It is difficult to determine the impact of the COVID-19 pandemic on the Group since we cannot currently
foresee when the pandemic will abate.
Accounting treatments require estimations to be made based on certain assumptions. The Group has madeaccounting estimates by assuming that the impact of the COVID-19 pandemic will continue to a certain extent
during FY2022, in view of the impact of each business on the operating results for the nine months ended
December 31, 2022.
<Accounting estimates following the situation between Russia and Ukraine>
Although the Company procures raw materials from Russia, it is difficult to accurately forecast the impact of
the current international situation surrounding Russia and Ukraine on our procurement of raw materials.
The Group has made accounting estimates by assuming that the procurement transactions will continue.
(Significant changes in shareholders’ equity)
Purchase of treasury stock
The Company purchases treasury stock from the market as per the provisions of Article 156 of theCompanies Act that is applied in an alternative interpretation of Article 165, Section 3 of the Companies Act.
The purchase of treasury stock that was decided at the Board of Directors meeting held on April 27, 2022,
has ended with the purchases of up to June 23, 2022.
(1) Purchase period
May 9 – June 23, 2022 (contract basis)(2) Number of shares purchased
6,121,500 shares(3) Total amount of purchase¥15,999,816,800(4) Purchase method
Market purchase on the Tokyo Stock Exchange
Retirement of treasury stock
At its Board of Directors meeting held on July 27, 2022, the Company resolved to retire its treasury stock
pursuant to Article 178 of the Companies Act and carried out the retirement as follows.
(1) Class of shares retired
Common stock(2) Number of shares retired
6,121,500 shares(3) Date of retirement
August 16, 2022
(Application of accounting treatment peculiar to quarterly consolidated financial statement preparation)
Calculation of taxes
Taxes are calculated by multiplying profit before income taxes for the third-quarter period under review by
the reasonably estimated effective tax rate subsequent to the application of tax effect accounting to the profit
income before income taxes for the current consolidated fiscal year ending March 31, 2023 including the third
quarter under review.

9(Change in accounting policies)
Change to revenue recognition standards in the gas business
The sale of city gas involves contractual obligations to be delivered throughout the contract period. The
performance obligation is fulfilled whenever the delivery is made. The Company had recognized revenue on
the basis of the date of meter reading in accordance with the gas business accounting rules. The transitional
measure rate regulations were lifted on October 1, 2021, at the Company, which carried out an absorption-typecompany split to transfer its gas pipeline business to Tokyo Gas Network Co., Ltd., a wholly-owned subsidiaryof the Company, on April 1, 2022. The Company has ceased to be a general gas pipeline service provider as set
forth in the gas business accounting rules due to the spin-off. Therefore, revenues associated with the sale ofcity gas are recognized on the basis of delivery, starting the three months ended June 30, 2022, by reasonably
estimating the performance obligation that is fulfilled at the end of the term.
This change in accounting policies is retroactively applied, with the consolidated financial statements for thequarters of the fiscal year ended March 31, 2022, and for the fiscal year ended March 31, 2022, being applied
the change retroactively.
As a result, net sales, gross profit, operating profit, ordinary profit and profit before income taxes for the ninemonths ended December 31, 2021, increased by ¥15,785 million each compared to before the retroactive
application. Notes and accounts receivable - trade, and contract assets on the consolidated balance sheets of the
fiscal year ended March 31, 2022, increased by ¥34,143 million, deferred tax assets decreased by ¥9,560
million, and retained earnings increased by ¥24,584 million. In addition, the beginning balance of retained
earnings for the fiscal year ended March 31, 2022, has increased by ¥17,626 million as the cumulative effects
were reflected in the net assets at the beginning of the fiscal year ended March 31, 2022.
(Changes in presentation)
Change of the basis of consolidated financial statements from gas business accounting rules to the Quarterly
Consolidated Financial Statements OrdinanceAs described in “(Change in accounting policies),” the Company ceased to be a general gas pipeline
service provider as set forth in the gas business accounting rules on April 1, 2022. As a result, the Company’squarterly consolidated financial statements, which had been prepared under the Ordinance on the
Terminology, Forms, and Preparation Methods of Quarterly Consolidated Financial Statements (“Quarterly
Consolidated Financial Statements Ordinance”) and the gas business accounting rules until the final quarterof the fiscal year ended March 31, 2022, have been prepared under the Quarterly Consolidated Financial
Statements Ordinance since the first-quarter period under review. Details of the main changes are as follows:
1. Quarterly consolidated balance sheets(1) While the fixed arrangement was adopted for the fiscal year ended March 31, 2022, the current
arrangement has been adopted since the first-quarter period under review.
(2) While property, plant and equipment were presented for each individual function for the fiscal
year ended March 31, 2022, they have been presented for each individual type since thefirst-quarter period under review.
To reflect this change in presentation, the consolidated balance sheets for the fiscal year ended
March 31, 2022, have been restated as follows.
(Million yen)
Before restatement
After restatement(March 31, 2022)(March 31, 2022)
Property, plant and equipment
Property, plant and equipment
218,956
338,517
Production facilities
Buildings and structures, net
Machinery, equipment and
578,394
892,515
Distribution facilities
vehicles, net
Service and maintenanceTools, furniture and fixtures,
15,417
14,484
facilities
net
630,786
192,455
Other facilities
Land
316
5,899
Inactive facilities
Leased assets, net

10

2.

Quarterly consolidated statements of income(1) Expenses pertaining to the supply of gas, which were included in selling, general andadministrative expenses in the nine months ended December 31, 2021, have been included in costof sales in the nine months ended December 31, 2022.
(2) Business miscellaneous costs incurred in association with the gas business and expenses related
to incidental businesses were included in cost of sales in the nine months ended December 31,
2021. In the nine months ended December 31, 2022, however, they have been included in cost of
sales or selling, general and administrative expenses according to the nature of the expenses.
To reflect this change in presentation, the quarterly consolidated statements of income for thenine months ended December 31, 2021, have been restated as follows.
(Million yen)
Before restatement
After restatement(From April 1, 2021, to December 31, 2021)(From April 1, 2021, to December 31, 2021)
1,007,732
1,165,380
Cost of sales
Cost of sales
Selling, general andSelling, general and342,244
184,532
administrative expenses
administrative expenses

Change in presentation of financial assets and financial liabilities due to recording of derivative transactions atfair value
The Group had presented financial assets and financial liabilities due to the recording of derivativetransactions at fair value, which are posted under other current assets and other current liabilities and otherinvestments and other non-current liabilities, on a gross basis on the consolidated balance sheets. However,deeming it will be able to present its financial condition more appropriately by offsetting financial assets andfinancial liabilities that meet the requirements set forth in the Practical Guidelines on Accounting Standards
for Financial Instruments (Accounting Practice Committee Statement No. 14), the Group has changed thepresentation method to offset the two accounting items, starting the second-quarter period under review.
To reflect this change in presentation, the consolidated financial statements for the fiscal year ended March
31, 2022, have been restated, with the changes being as follows.
(Million yen)
Before restatement
After restatement(March 31, 2022)(March 31, 2022)
AssetsAssets
305,814258,610
Other current assets
Other current assets
100,916
94,223
Other investments
Other investments
Liabilities
Liabilities
433,777
386,573
Other current liabilities
Other current liabilities
113,004
106,310
Other non-current liabilities
Other non-current liabilities11