April 26, 2023

Consolidated Financial Results Bulletin for the Fiscal Year Ended March 31, 2023
(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. SASAYAMA Shinichi, President
Contact:
Mr. KOMORI Rikiya, Chief Manager,
Location of head office: Tokyo
Consolidated Settlements Sect.
General shareholders’ meeting schedule:
June 29, 2023
Scheduled date of the filing of securities report:
June 29, 2023
Scheduled date of the start of dividend payments:
June 6, 2023
Preparation of earnings presentation material (yes/no):Yes
Holding of earnings announcement (yes/no):Yes (for institutional investors)(Amounts are rounded down to the nearest million yen)

1. Consolidated Performance for FY2022 ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(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

FY2022 ended
Mar. 31, 2023

3,289,634

52.7%

421,477230.5%

408,846199.6%

280,916193.5%FY2021 ended
Mar. 31, 2022

2,154,860

22.1%

127,52564.2%

136,481

93.6%

95,702

93.3%

Note: Total comprehensive income
FY2022 ended March 31, 2023: 358,130 million yen (238.4%)

Profit per share

Diluted profit
per share

FY2022 ended
Mar. 31, 2023

646.99 yen—

FY2021 ended
Mar. 31, 2022

217.67 yen—

Reference: Profit or loss on investment accounted for by equity method
FY2022 ended March 31, 2023: -4,450 million yen

FY2021 ended March 31, 2022: 105,816 million yen (208.9%)
Ratio ofordinary profit tototal assets

Ratio ofoperating profit to
net sales

20.0%

12.1%

12.8%

7.9%

4.6%

5.9%

Ratio of profit toshareholders’ equity

FY2021 ended March 31, 2022: 3,725 million yen

Note: The numerical figures for FY2021 ended March 31, 2022 have been retroactively applied to reflect changes in accounting policies.

(2) Consolidated Financial Position(Unit: million yen)
Total assets
3,581,425
3,187,627

As of Mar. 31, 2023

As of Mar. 31, 2022
Reference: Shareholders’ equity
As of March 31, 2023: 1,558,404 million yen

Total net assets
1,589,301
1,281,150

Equity ratio
43.5%
39.3%

Net assets per share
3,595.60 yen
2,847.88 yen

As of March 31, 2022: 1,251,781 million yen

Note: The numerical figures shown for FY2021 ended March 31, 2022 have been retroactively applied and have been restated owing to reshufflingto reflect retroactive application and changes to the presentation method in tandem with changes in accounting policy.

(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

FY2022 ended
Mar. 31, 2023

487,030-203,522-22,403

453,432

FY2021 ended
Mar. 31, 2022

145,227-224,656

90,490179,699

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)

FY2021 ended
Mar. 31, 2022

—

30.00

—

35.00

65.00

28,585

29.9%

2.4%

FY2022 ended
Mar. 31, 2023

—

32.50

—

32.50

65.00

28,186

10.0%

2.0%

FY2023 ending
Mar. 31, 2024 (Forecast)

—

32.50

—

32.50

65.00

—

3. Consolidated Results Forecast for FY2023 ending March 31, 2024 (April 1, 2023 - March 31, 2024)(Unit: million yen)(% of change from the corresponding period of previous year)
Net sales
Full-year

2,897,000-11.9%

Operating profit
150,000-64.4%

Ordinary profit
137,000-66.5%

Profit attributable toowners of parent

Profit per
share

100,000

256.90 yen-64.4%*Notes(1) Significant changes in consolidated subsidiaries (changes in specified subsidiaries resulting in change of scope of
consolidation during the year) (yes/no): No
Reference: Scope of consolidation and application of equity method
Number of consolidated subsidiaries: 102 (Increased by 2 companies and decreased by 13 companies)
Number of subsidiaries and affiliates accounted for by equity method: 15 (Decreased by 1 company)(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: Yes
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, 2023

434,875,059 Mar. 31, 2022

440,996,559

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

Mar. 31, 2023

1,455,205 Mar. 31, 2022

1,448,431

3) Average number of shares during
period:Apr. 2022– Mar.2023

434,188,168 Apr. 2021– Mar.2022

439,672,718

(Reference)

1. Non-Consolidated Business Results for FY2022 ended March 31, 2023 (April 1, 2022 - March 31, 2023)(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

FY2022 ended
Mar. 31, 2023

2,999,878

55.3%

301,426480.6%

303,621532.8%

205,171442.9%FY2021 ended
Mar. 31, 2022

1,931,053

19.7%

51,917

10.3%

47,983

2.6%

37,791-11.1%

Note: The numerical figures for FY2021 ended March 31, 2022 have been retroactively applied to reflect changes in accounting policies.

Profit per share

Diluted profit
per share

FY2022 ended
Mar. 31, 2023

472.54 yen—

FY2021 ended
Mar. 31, 2022

85.95 yen—

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

Total net assets

Equity ratio

Net assets per share

As of Mar. 31, 2023

2,696,080

991,76436.8%

2,288.23 yen

As of Mar. 31, 2022

2,331,975

836,53235.9%

1,903.17 yen

Reference: Shareholders’ equity
As of March 31, 2023: 991,764 million yen
As of March 31, 2022: 836,532 million yen
Note: The numerical figures shown for FY2021 ended March 31, 2022 have been retroactively applied and have been restated owing to reshufflingto reflect retroactive application and changes to the presentation method in tandem with changes in accounting policy.

2. Non-Consolidated Results Forecast for FY2023 ending March 31, 2024 (April 1, 2023 - March 31, 2024)(Unit: million yen)(% of change from the corresponding period of previous year)
Net sales
Full-year

2,600,800-13.3%

Operating profit

Ordinary profit

69,90070,500-76.8%-76.8%Net income
51,900-74.7%

Profit per
share
133.33 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. The consolidated and non-consolidated earnings forecasts include major uncertain elements, including the impact due to thestate of affairs in Russia and the Ukraine. There is potential for major volatility to these forecasts depending on trends going
forward.
For details of the above forecasts, please refer to “1. Overview of Business Performance, etc. (2) Future outlook” on page 6of 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 FY2022 .................................................................... 2(2)
Future outlook ............................................................................................................................................................. 6(3)
Basic policy on profit sharing and dividends for FY2022 and FY2023 .................................................................. 7
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 Equity .................................................................................................. 12(4)
Consolidated statements of cash flows ................................................................................................................... 16(5)
Notes on consolidated financial statements ............................................................................................................. 191) (Note on going concerns’ premise) ........................................................................................................................... 192) (Additional information) ........................................................................................................................................... 193) (Change in accounting policies) ................................................................................................................................ 194) (Changes in presentation) ......................................................................................................................................... 205) (Segment information, etc.) ...................................................................................................................................... 216) (Per share information) ............................................................................................................................................. 257) (Material subsequent events) .................................................................................................................................... 25
V. Non-Consolidated Financial Statements ................................................................................................................. 26(1)
Balance sheets ............................................................................................................................................................ 26(2)Statements of income................................................................................................................................................. 28

1

I.

Overview of Business Performance, etc.

(1) Overview of business performance and financial position of FY2022(Business performance of FY2022)
During the fiscal year under review, in the economy in Japan, weakness continued to linger in some areas of exports andproduction, but the economy modestly rebounded owing to recovery trends in consumer spending and capital expenditures.
Moving forward, further recovery is expected owing to benefits from various policies as the society deals with COVID19. Nonetheless, the economic outlook continues to look murky due primarily to recent price hikes, supply constraints,
and fluctuations in the financial and capital markets.
Amid this economic climate, the intensification of competition across industry boundaries is increasing further reflecting
the full deregulation of retail gas sales in April 2017, following the full deregulation of retail electric power sales in April
2016. Also, given in part the global trend for decarbonization, the environment surrounding the energy business has
undergone a substantial change. Given this backdrop, the Tokyo Gas Group actively undertook various measures toenhance the added value we deliver to customers in Japan and abroad through the development of a comprehensive energy
business and globalization, and to ensure that the Tokyo Gas Group continues to be the group that customers select.
In November 2021, the Company formulated Compass Action, a detailed roadmap for achieving the Group’s management
vision, Compass 2030, and on April 1, 2022, transitioned to a holding company structure to build a system that will embody
this vision. In light of this, the Company has trimmed down the number of reporting segments to four, the “energy solution,”“network,” “overseas,” and “urban development” segments, starting in FY2022, in comparison with its previous five report
segments, which were “gas,” “electric power,” “overseas,” “energy related,” and “real estate.”
In the energy solution segment in the fiscal year under review, city gas sales volume decreased year-on-year reflecting adecline in residential and commercial demand mainly due to high temperatures. Electric power sales also rose. Although
this segment was also impacted by a contraction in demand from customer staying at home, sales volume climbed, mainly
accompanying a rise in the number of retail sales transactions. In addition, in wholesale sales, there was an uptick in sales
volume owing to an increase in demand at wholesale customers.
In the network segment, consignment revenue was impacted by high temperatures during the winter months. In theoverseas segment, the balance of income and expenses improved primarily reflecting a hike in selling prices chiefly in the
LNG business in Australia and North America owing to impact from soaring market prices globally, and as the yen
depreciations in value against the US dollar. In the urban development segment, there was sizeable improvement in room
occupancy rates in the hotel business.
Reflecting these economic conditions and changes in the business climate, consolidated net sales for the fiscal year underreview totaled ¥3,289.6 billion, an increase of 52.7% year on year, and operating expenses were ¥2,868.1 billion, a growthof 41.5% year on year.
Consequently, operating profit was ¥421.4 billion, a rise of 230.5% year on year, and ordinary profit totaled ¥408.8 billion,
an improvement of 199.6% year on year. Meanwhile, profit attributable to owners of the parent came to ¥280.9 billion, agrowth of 193.5% year on year. This reflected the following. The Company posted ¥3.7 billion in gain on sales ofinvestment securities and ¥3.5 billion in gain on a business transfer, as extraordinary income. Meanwhile, as extraordinary
losses, including income taxes, the Company posted a ¥4.0 billion in impairment loss in the energy solutions segment, a¥2.4 billion in loss on the valuation of investment securities and a ¥2.1 billion in loss on the valuation of long-term loans.
That being said, in the “Segment summary” below, given it is difficult to prepare information related to the numericalfigures for sales and profit in the previous consolidated fiscal year for the new reporting segments, for “energy solutions”
and “network,” only earnings for the consolidated fiscal year under review are presented.
<Segment summary>1) Energy solution
Segment sales totaled ¥3,031.1 billion, mainly reflecting an increase in the unit sales price owing to resource costadjustments and a rise in electrical power sales.
Operating expenses stood at ¥2,665.1 billion, owing in part to an upward trend from the previous fiscal year in crude oil
prices.
Accordingly, operating profit in this segment came to ¥365.9 billion.
(Gas)
In the fiscal year under review, the sales volume for city gas, a major business in the Energy Solution segment, was 12,574
million m3, a decline of 4.4% year on year. This includes residential demand of 2,802 million m3 (down 9.1% year onyear), and commercial demand was 2,224 million m3 (a drop of 1.4% year on year), due to a fall in demand primarilyreflecting high temperatures.
Industrial demand was 5,932 million m3 (a decrease of 4.3% year on year) owing in part to slow down in operations at
users.
Supply to other utilities was 1,616 million m3 (up 0.4% year on year) mainly reflecting an increase in operations at otherutilities.
2

<Consolidated City Gas Sales Volume for FY2022 Ended March 31, 2023>

City gas sales volume

FY2022
FY2021
Change% change
No. of customers for cityThousands
8,701
8,688
13
0.2
gas retail sales
Thousands
No. of customers (meters)
12,331
12,202129
1.1
Residential
2,802
3,083
-281
-9.1
Mil. m3
Commercial
2,224
2,256
-32
-1.4
Mil. m3
Industrial
5,932
6,198
-266
-4.3
Mil. m3
3
Subtotal
8,156
8,454
-297
-3.5
Mil. mSupplies to other utilities
1,616
1,609
7
0.4
Mil. m3
3
Total
12,574
13,146-572-4.4
Mil. mAverage temperature
°C
16.8
16.2
0.6
—
Notes:
1. No. of customers for city gas retail sales indicates the number of billed customers for city gas retail sales.
2. The number of installed meters is the number of meters installed as a gas pipeline operator.
3. “Commercial” indicates sales to commercial, public and medical institutions.
4. City gas sales volumes are on the basis of 45MJ/m3.
5. The numerical figures for FY2021 are figures that have been retroactively applied to reflect retroactive adjustments intandem with changes in accounting policies.
<Foreign Exchange Rate and Crude Oil Price>¥/$ rate

FY2022135.50

FY2021112.39Change23.11

Crude oilprice($/bbl)FY2022102.67

FY2021

Change

77.18

25.49

(Electric power)<Consolidated Electric Power Sales Volume for FY2022 Ended March 31, 2023>
FY2022
FY2021
Change% change
No. of customers for cityThousands
3,475
3,014
461
15.3
gas retail sales
Electric Retailmillion kWh
12,01911,305
714
6.3
power
Wholesale etc. million kWh
22,426
16,983
5,443
32.1
sales
million kWh
34,44528,288
6,157
21.8
volume Total
Note: No. of customers for electric power retail sales indicates the number of billed customers for electric power retailsales2) Network
Sales totaled ¥370.3 billion, operating expenses of ¥370.7 billion, and segment operating profit of ¥300 million.
3) Overseas
Sales came to ¥159.9 billion, an increase of ¥74.0 billion year on year. Operating expenses were ¥86.8 billion. Meanwhile,
segment operating profit was ¥67.9 billion, a rise of ¥41.3 billion year on year, as a result of posting investment gains
under the equity method.
4) Urban development business
Sales were ¥62.6 billion, a rise of ¥4.7 billion year on year. Operating expense was ¥48.2 billion.
Meanwhile, segment operating profit was ¥15.1 billion, a hike of ¥1.8 billion year on year owing to the posting ofinvestment gains under the equity method.

3

<Summary by segment>(Unit: million yen )Energy solution

Sales

Operation
expenses

Segment
profit/loss

FY2022(% of total)
FY2021(% of total)
Amount of change(Rate of change)
FY2022(% of total)
FY2021(% of total)
Amount of change(Rate of change)
FY2022(% of total)
FY2021(% of total)
Amount of change(Rate of change)

Network

3,031,188(83.7%)————
2,665,107(84.1%)————
365,981(81.6%)————

370,385(10.2%)————
370,725(11.7%)
—
—
—
—
-339
(-0.1%)————

Overseas

Urban development

159,912(4.4%)
85,893—74,019(86.2%)
86,866(2.7%)
62,137—
24,729(39.8%)
67,911(15.1%)
26,520—41,391(156.1%)

62,676(1.7%)
57,961—
4,715(8.1%)
48,283(1.5%)
45,605—2,678(5.9%)
15,177(3.4%)
13,290—1,887(14.2%)

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/loss are adjusted against the amount based on operating
profit in the consolidated financial statements plus or minus equity-method investment gains.
Former segments in comparison with the previous consolidated fiscal year
Gas

Sales

Operatingexpenses

Segment
profitFY2022(% of total)
FY2021(% of total)
Amount of change(Rate of change)
FY2022(% of total)
FY2021(% of total)
Amount of change(Rate of change)
FY2022(% of total)
FY2021(% of total)
Amount of change(Rate of change)

2,230,915(59.0%)
1,453,666(58.1%)
777,24953.5%
1,936,697(58.3%)
1,341,356(57.6%)
595,34144.4%
294,218(64.2%)
112,309(62.4%)
181,909
162.0%

Electric
power
856,450(22.6%)
467,804(18.7%)
388,646
83.1%
805,343(24.3%)
456,687(19.6%)
348,65676.3%
51,107(11.1%)
11,117(6.2%)
39,990359.7%

Overseas
159,944(4.2%)
85,931(3.4%)
74,01386.1%
84,712(2.6%)
60,444(2.6%)
24,26840.2%
70,096(15.3%)
28,252(15.7%)
41,844148.1%(Unit: million yen )Energyrelated
365,159(9.7%)
331,312(13.2%)
33,84710.2%
349,126(10.5%)
318,494(13.7%)
30,632
9.6%
16,032(3.5%)
12,818(7.1%)
3,214
25.1%

Real estate
62,680(1.7%)
57,961(2.3%)
4,719
8.1%
48,025(1.4%)
45,429
(2.0%)
2,596
5.7%
15,440(3.4%)
13,466(7.5%)
1,974
14.7%

Others107,273(2.8%)
107,542(4.3%)-269-0.3%
95,578(2.9%)
105,544(4.5%)-9,966-9.4%
11,595(2.5%)
2,024(1.1%)
9,571
472.8%

Notes:
1. Figures for sales include internal transactions. Figures for operating expenses do not include expenses that cannot beallocated to specific segments. Figures for segment profit are adjusted against the amount based on operating profit/loss
in the consolidated financial statements plus or minus equity-method investment gains.
2. Numerical figures for the previous consolidated fiscal year show figures that have been retroactively applied to reflectretroactive adjustments in tandem with changes in accounting policies.

4

(Financial position in FY2022)
1) Situation of assets, debt and net assets
Assets in comparison with the end of the previous consolidated fiscal year totaled ¥3,581.4 billion, an increase of ¥393.7
billion. This is primarily attributable to a rise in cash and deposits based mainly on unit sales prices for city gas rates owing
to resource cost adjustments chiefly in tandem with the impact from a rise in crude oil prices, and an increase in notes andaccounts receivable - trade, and contract assets.
Liabilities stood at ¥1,992.1 billion, a rise of ¥85.7 billion, primarily attributable to an increase in interest-bearing debt
mainly due to corporate bonds and the long-term loans.
Net assets amounted to ¥1,589.3 billion, a growth of ¥308.1 billion. Although there was a distribution of capital surplus,
the increase overall was primarily attributable a rise in shareholders’ equity owing to the posting of profit attributable tothe owners of the parent.
In comparison with the growth rate of total assets, the growth rate of net worth (equity capital) (total shareholders’ equity+ accumulated other comprehensive income) was larger. Consequently, the shareholders’ equity ratio totaled 43.5%, an
improvement of 4.2 points in comparison with the end of the previous consolidated fiscal year.
<Capital expenditure>
Energy solution
Network
Overseas
Urban development
Adjustments
Total

FY2022
747
847
304
245
-12
2,132

FY2021
615
844
519
102
-9
2,072

(Unit: hundred million yen)
Change% change
132
21.5
3
0.4
-215
-41.5
143
139.1
-3
—
60
2.9

FY20224,870-2,035
-224
126
2,737
1,796
4,534

(Unit: hundred million yen)
FY2021
Change1,452
3,418-2,246211
904-1,128
91
35
201
2,536
1,578
218
1,796
2,738

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 ¥487.0 billion. Although there was an increasein trade receivables (-¥114.2 billion) and a rise in inventory (-¥78.4 billion), cash and cash equivalents rose primarilyreflecting the posting of income before income taxes (¥407.4 billion) and depreciation and amortization (¥205.0 billion).
b) Cash flow from investing activities
Cash and cash equivalents using investing activities totaled ¥203.5 billion. Cash and cash equivalents decrease primarily
attributable to expenditures for the acquisition of property, plant and equipment (-¥150.6 billion), expenditures for theacquisition of intangible assets (-¥34.2 billion) and expenditures for the acquisition of investment securities (-¥28.0 billion).
c) Cash flow from financing activities
Cash and cash equivalents obtained as a result of operating activities totaled ¥22.4 billion. Cash and cash equivalents
decreased primarily attributable to expenditures for the repayment of long-term loans (-¥72.2 billion), expenditures for theredemption of commercial paper (-¥30.0 billion) and dividend payments (-¥29.4 billion), despite proceeds from long-termloans (¥97.3 billion) and proceeds from the issuance of bonds (¥19.7 billion).

5(2) Future outlook
In FY2023, ending March 31, 2024, we forecast city gas sales volume is likely to total 12,009 million m3, a decline of
4.5% versus FY2022. Although residential demand is expected to rise, mainly due to impact from weather temperatures,and commercial demand is anticipated to recover from the previous decline in demand in industries such as the restaurant
and hotel industries, industrial demand from power generation customers is forecast to drop.
We look for a drop in electricity sales volume of 16.4% year on year to 28,789 million kWh, due mainly to a drop in sales
volume to wholesalers. Net sales are expected to decrease 11.9% year on year reflecting a decline in the unit sales pricein tandem with resource cost adjustments and a drop in electricity sales volume. Operating expenses is anticipated todwindle chiefly owing to resources costs on the back of a sales volume decline but operating profit is forecast to drop
64.4% year on year due primarily to profit declines due to decreases mainly in city gas sales and electricity sales.
Taking these factors into account, we forecast consolidated net sales of ¥2,897.0 billion, a decrease of ¥392.6 billion or
11.9% year on year, operating profit of ¥150.0 billion a fall of ¥271.4 billion or 64.4% year on year, ordinary profit of¥137.0 billion, a drop off of ¥271.8 billion or 66.5% year on year, and profit attributable to owners of the parent of ¥100.0
billion, a decline of ¥180.9 billion or 64.4% year on year.
The economic frame assumed for FY2023 is ¥130/$ for foreign exchange rate for the full-year, and $90/bbl for the fullyear for crude oil price.
a. Consolidated city gas sales volume forecast for FY2023
FY2023(Forecast)Mil. m3
2,989
City gas Residential
sales
OthersMil. m3
9,020
volume Total
Mil. m3
12,009Average temperature°C
16.3
b. Consolidated electric power sales volume forecast for FY2023
FY2023(Forecast)
Total electric power
million kWh
28,789sales volume

FY2022(Results)
2,802
9,772
12,57416.8

FY2022(Results)

Change% change

187
-752
-565
-0.5

Change% change-5,65634,445

6.7
-7.7
-4.5
—

-16.4

c. Consolidated earnings forecast for FY2023(Unit: hundred million yen)
Net sales
FY2023 (forecast)
FY2022 (results)
Change% change

28,97032,896-3,926-11.9%

Operating profit

Ordinary profit

Profit attributable toowners of parent

1,500
4,214
-2,714-64.4%

1,370
4,088-2,718-66.5%

1,000
2,809-1,809-64.4%< Foreign exchange rate and crude oil price forecast for FY2023>
FY2023
FY2022
Crude oil
Change(Forecast)(Results)¥/$ rate
price($/bbl)
130.0
135.5
-5.5

6

FY2023(Forecast)
90.0

FY2022(Results)
102.7

Change-12.7

(3) Basic policy on profit sharing and dividends for FY2022 and FY2023
The Company allocates its management results to the improvement of customer service and realization of a sustainable
society, as well as sharing them with shareholders in an appropriate and timely manner. Our basic dividend policy is tomaintain stable dividends while at the same time offering gradual dividend increases in accordance with profit growth bycomprehensively taking into consideration medium- to long-term profit levels.
The Company revised its Articles of Incorporation on June 29, 2021. Owing to a resolution approved by the Board of
Directors, it is now possible for the Company to set a dividend. As of the Board of Directors held of April 26, 2023, theBoard has set the per-share dividend at ¥32.50. Reflecting this, the annual dividend per share will be ¥65 for FY2023,
including an interim dividend of ¥32.50.
The dividend forecast for FY2022 is an annual dividend of ¥65 per share (including interim dividend of ¥32.50).
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: 2 companies
Tokyo Gas Australia 1 Pty Ltd (newly established)
Tokyo Gas Real Estate Investment Advisory Co., Ltd. (former Spring Investment) (stock acquisition)- Excluded: 13 companies
Tokyo Gas Energy Co., Ltd., Tokyo Gas LPG Terminal Co., Ltd., Enelife Carrier Co., Ltd., Tokyo Auto Gas Co., Ltd.
(stock transfer)
Annaka Solar Power Plant (same) (company liquidation)
Tokyo Gas Pipe Network Co., Ltd., Tokyo Gas Pipeline Co., Ltd., Katori Clean Energy, (same), Nasu Clean Energy(same), TGES Smart Engineering Service, Tokyo Gas Liquid Holdings Co., Ltd., TG&D SINGAPORE INVESTMENTHOLDINGS PTE. LTD., Shii-no-Mori Power (merger)
2) Application of equity method- Excluded in the equity method: 1 company
MT Falcon Holdings Company, S.A.P.I. de C.V. (stock transfer)
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 onJune 29, 2022]

III. Basic Concept Regarding Selection of Accounting Standards
The Tokyo Gas Group prepares consolidated financial statements based on Japanese standards in consideration ofcomparability of consolidated financial statements between companies. It intends to respond appropriately regarding theapplication of IFRS, taking into account the situations in both Japan and abroad.

7

IV. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2022

As of March 31, 2023

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

179,769

453,502364,683

446,061

17,824

17,125

Securities
Merchandise and finished goods

10
3,467

10
6,030

Work in process
Raw materials and supplies

12,083
67,135

15,653
135,769

Other current assets
Allowance for doubtful accounts

258,610-3,714

145,882-2,122

Total current assets

899,870

1,217,914

Buildings and structures, net

338,517346,262

Machinery, equipment and vehicles, net

892,515921,572

Non-current assets
Property, plant and equipment

Tools, furniture and fixtures, net

14,484

10,714Land

192,455

197,245

Leased assets, net

5,899

8,231

125,501

98,8781,569,373

1,582,904

Goodwill
Other intangible assets

6,018
294,296

6,410
308,122

Total intangible assets

300,315

314,533

Investments and other assets
Investment securities

236,303

278,497

Long-term loans receivable
Retirement benefit asset

48,653
5,864

56,5508,809

Deferred tax assets
Other investments

34,67094,22332,84993,649Allowance for doubtful accounts-1,647-4,283

Construction in progress
Total property, plant and equipment
Intangible assets

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

8418,068

466,073

2,287,757

2,363,511

3,187,627

3,581,425

(Millions of yen)
As of March 31, 2022

As of March 31, 2023

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

76,2296,385

63,845
6,674

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

48,97220,00059,973

Income taxes payable
Other current liabilities

33,830386,573

118,636
337,028

Total current liabilities

551,990

606,158

Bonds payable
Long-term borrowings

548,619568,725

548,976
607,262

Deferred tax liabilities
Retirement 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

29,641
66,19533,90164,570

84

183

3,427
637

3,444
527

2,620

5,176

531

654

Asset retirement obligations
Other noncurrent liabilities

27,692
106,310

27,55993,709Total non-current liabilities

1,354,486

1,385,965

1,906,477

1,992,124

Shareholders' equity
Share capital

141,844

141,844

Capital surplus
Retained earnings

846
1,076,184

1,310,908

Treasury shares-3,524-3,6581,215,350

1,449,094

18,86630,954Non-current liabilities

Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges-11,904-9,626

Foreign currency translation adjustment
Remeasurements of defined benefit plans

32,545-3,07686,226
1,754

Total accumulated other comprehensive income

36,430109,309

29,36830,896

1,281,150

1,589,301

3,187,627

3,581,425

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

9(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
For the fiscal year
ended March 31, 2022

For the fiscal year
ended March 31, 2023

Net sales

2,154,860

3,289,634

Cost of sales

1,766,392

2,596,462

Gross profit

388,467

693,172

Selling, general and administrative expenses

260,941

271,695

Operating profit

127,525

421,477

1,032

2,463

1,692

2,797

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

3,725

-

14,55013,725

5,089
6,639

Miscellaneous income

14,673

11,510Total non-operating income

49,39928,500Interest expenses
Loss on derivatives
Share of loss of entities accounted for using equity
methodMiscellaneous expenses

14,466
11,864

15,13810,308-4,450

14,113

11,233

Total non-operating expenses

40,444

41,130136,481408,846

2,226
4,118

3,795

Gain on sale of businesses

-

3,506

Total extraordinary income

6,344

7,301

3,742
2,468

4,093
2,420

-

2,154

Non-operating expenses

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

Extraordinary losses
Impairment losses
Loss on valuation of investment securities
Loss on valuation of long-term loans receivable

6,211

8,669

Profit before income taxes

Total extraordinary losses

136,614

407,479

Income taxes - current
Income taxes - deferred

32,951
6,429

122,208
3,748

Total income taxes

39,381

125,956

Profit97,233

281,522

Profit attributable to non-controlling interests

1,530

605

Profit attributable to owners of parent

95,702

280,91610

(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the fiscal year
ended March 31, 2022
ProfitOther comprehensive income

For the fiscal year
ended March 31, 2023

97,233

281,522

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges-4,178-6,841

12,063
3,113

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

25,006-10,964

51,756
4,795

5,560

4,879

8,583

76,608Comprehensive income

105,816

358,130

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

108,198

353,795-2,381

4,334

11

(3) Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
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-controllinginterests
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period141,844

Capitalsurplus
1,145

Retainedearnings

TreasurysharesTotalshareholders'equity-3,9071,129,845

990,762
22,881

141,844

1,145

22,881

1,013,644-3,907

1,152,727-26,423-26,423

95,702

95,702-3,786-3,786

-100

564

463

-3,604

3,604--3,033-3,033

-298

-298

-

-298

62,539382

62,623

141,844846

1,076,184-3,524

1,215,350

Accumulated other comprehensive income
Total
Valuation
Foreign
Deferred gains
Remeasureme accumulateddifference on
currency
or losses on
nts of defined
otheravailable-fortranslation
hedgesbenefit plans comprehensiv
sale securities
adjustmente income
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 the

22,990-11,240

4,322

7,895

23,968

Noncontrollinginterests

24,457

Total net
assets1,178,271
22,881

22,990-11,240

4,322

7,895

23,96824,4571,201,152-26,423
95,702-3,786463-3,03312

Accumulated other comprehensive income
Total
Valuation
Foreign
Deferred gains
Remeasureme accumulateddifference on
currency
or losses on
nts of defined
otheravailable-fortranslation
hedgesbenefit plans comprehensiv
sale securities
adjustmente income
number of
consolidated
subsidiaries
Change inownership interestof parent due totransactions with
non-controllinginterests
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodNoncontrollinginterests

Total net
assets-298-4,123-664

28,222-10,972

12,462

4,911

17,373-4,123-664

28,222-10,972

12,462

4,911

79,997

18,866-11,904

32,545-3,07636,43029,368

1,281,150

13

For the fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginningof period
Changes during
periodDividends ofsurplusTransfer fromretained earnings tocapital surplus
Profit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesCancellation oftreasury shares
Change inownership interestof parent due totransactions with
non-controllinginterests
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period141,844

CapitalsurplusRetainedearnings

846

821

TreasurysharesTotalshareholders'equity-3,524

1,215,350

1,076,184-29,485-29,485-821-

280,916

280,916-15,885-16,031-16,031121215,885--1,668-1,668--846

234,724-134

233,743

141,844-

1,310,908-3,6581,449,094

Accumulated other comprehensive income
Total
Valuation
Foreign
Deferred gains
Remeasureme accumulateddifference on
currency
or losses on
nts of defined
otheravailable-fortranslation
hedgesbenefit plans comprehensiv
sale securities
adjustmente income
Balance at beginningof period
Changes during
periodDividends ofsurplusTransfer fromretained earnings tocapital surplus
Profit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesCancellation oftreasury shares
Change inownership interestof parent due totransactions with
non-controllinginterests
Net changes in
items other thanshareholders' equity

18,866-11,904

32,545-3,07636,430Noncontrollinginterests

29,368

Total net
assets1,281,150-29,485
280,916-16,03112--1,66812,0882,278

53,6814,830

1472,8791,528

74,407

Accumulated other comprehensive income
Total
Valuation
Foreign
Deferred gains
Remeasureme accumulateddifference on
currency
or losses on
nts of defined
otheravailable-fortranslation
hedgesbenefit plans comprehensiv
sale securities
adjustmente income
Total changes
during period
Balance at end of
periodNoncontrollinginterests

Total net
assets12,0882,278

53,681

4,830

72,8791,528

308,151

30,954-9,62686,226

1,754

109,309

30,896

1,589,301

15

(4) Consolidated Statements of Cash Flows(Millions of yen)
For the fiscal year
ended March 31, 2022
Cash flows from operating activities
Profit before income taxes

For the fiscal year
ended March 31, 2023

136,614

407,479

196,8103,742

205,076
4,093

4,136
2,574

4,224
1,658

-15,362-3,983

10,904-3,347

Loss (gain) on valuation of investment securities
Loss on valuation of long-term loans receivable

2,468
-

2,420
2,154

Loss (gain) on sale of businesses
Decrease (increase) in retirement benefit asset
Increase (decrease) in provision for contract loss inregards to appliance warranties
Interest and dividend income
Interest expenses-11,312-3,506
3,207

2,620

2,556

-2,724
14,466-5,26015,138Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using
equity method
Decrease (increase) in trade receivables
Decrease (increase) in inventories-7,757-1,910-3,7254,450-147,505-22,491-114,253-78,491

Increase (decrease) in trade payables
Decrease (increase) in contract assets

10,132
2,305

7,107-2,594

Increase (decrease) in contract liabilities
Increase (decrease) in accrued consumption taxes-12,587542

6,541
12,761

Decrease (increase) in accounts receivable - other
Decrease (increase) in prepaid expenses-57-2,796-3,587-1,789

Increase (decrease) in long term advances received
Other, net

8,835
11,906-2,22353,814

Subtotal

166,852

526,622

Interest and dividends received
Interest paid

9,068
-14,483

14,915-14,069

Depreciation
Impairment losses
Amortization of long-term prepaid expenses
Loss on retirement of property, plant and equipment
Loss (gain) of derivatives
Loss (gain) on sale of investment securities

Income taxes paid

-16,209-40,437

Net cash provided by (used in) operating activities

145,227

487,030-16,214-28,011

8,841

13,574-167,197-29,777-150,647-34,294

Purchase of long-term prepaid expenses
Proceeds from sale of non-current assets-6,584
6,334-5,237
5,769

Net decrease (increase) in short-term loans receivable
Long-term loan advances
Proceeds from collection of long-term loans
receivable
Payments of guarantee deposits-399-3,180-1,520-10,922

2,158

6,642

Cash flows from investing activities
Purchase of investment securities
Proceeds from sale and redemption of investment
securities
Purchase of property, plant and equipment
Purchase of intangible assets

Proceeds from refund of guarantee deposits
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Proceeds from sale of shares of subsidiaries resulting
in change in scope of consolidation
Proceeds from sale of businesses

16-13,189-8,1289,846

14,706-15,074-1,303

263

2,718

-

4,112

(Millions of yen)
For the fiscal year
ended March 31, 2022
Payment for settlement of contingent consideration
Other, net
Net cash provided by (used in) investing activities

17

For the fiscal year
ended March 31, 2023-

-3,914-482-7,065-224,656-203,522

(Millions of yen)
For the fiscal year
ended March 31, 2022

For the fiscal year
ended March 31, 2023

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

679

13,839Net increase (decrease) in commercial papers
Repayments of lease liabilities

30,000-2,683-30,000-2,928165,014-123,252

97,366-72,241

73,62019,791

Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of bonds
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Purchase of treasury shares
Dividends paid

-3,620-1,867-3,326-26,424-16,031-29,474

Other, net-19,515-857

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

90,490-22,403

9,117

12,62820,179273,733

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

157,811

179,699

1,708-

179,699

453,43218

(5)Notes on consolidated financial statements1) (Note on going concerns’ premise)
Not applicable2) (Additional information)[Share-based compensation plan for directors, corporate executive officers and executive officers]
At its Compensation Committee held on June 29, 2021, the Company resolved to introduce a trust-type share-based
Compensation Plan for its directors and corporate executive officers with the aim of providing incentives toimprove the Company’s corporate value over the medium to long term. The Company has also decided to introduce
a similar share-based compensation plan for its executive officers (the two share-based compensation plans are
hereinafter collectively referred to as the “Plan”; the directors, corporate executive officers and executive officers
are hereinafter collectively referred to as the “Executives”).
Accounting for the Plan is based on the Practical Solution on Transactions of Delivering the Company’s Own
Stock to Employees etc. through Trusts (PITF No. 30, March 26, 2015).
(1) Overview of transaction
The Plan is a trust-type share-based compensation plan under which a trust established by the Company bycontributing cash (hereinafter, the “Trust”) acquires Company shares equivalent to the number of points
granted by the Company to each Executive, who then receives delivery of the shares.
Under the Plan, Company shares will be delivered to Executives in office during the three fiscal years fromthe fiscal year ending March 31, 2022, to the fiscal year ending March 31, 2024 (hereinafter, the “Applicable
Period”). As a general rule, Executives shall receive the Company shares when they resign/retire.
(2) Company shares remaining in trust
The treasure stock remaining in trust are recorded as treasury stock under net assets based on book value intrust (excluding ancillary expenses). The book value and number of said treasury stock remaining, as of theend of the previous fiscal year, was valued at ¥460 million and totaled 223,800 shares and as of the end of the
fiscal year under review were valued at ¥449 million and totaled 218,500 shares.
[Accounting estimate taking into account the state of affairs concerning Russia and the Ukraine]
The Company procures resources from Russia. However, given the current state of affairs surrounding Russia
and the Ukraine, it is difficult to accurately forecast the impact this will have on the procurement of resources.
The Tokyo Gas Group is conducting various accounting estimates based on the assumption it continues to carryout procurement transactions with the two countries.
[Transfer of shares in our subsidiaries]
With respect to the transfer of shares in five of our Australian project holding companies to MidOcean Energy
Holdings Pty Ltd, a subsidiary of US-based EIG Global Energy Partners, LLC, for which we made our timely
disclosure on October 7, 2022 and noted in the quarterly financial report for the second quarter ended September
2022 as a significant event after the reporting period, the completion date was originally scheduled for March 2023.
However, due to continued discussions amongst the relevant parties, this has now been postponed to a future date
to be confirmed.
The contract price of this share transfer is 2.15 billion USD. However, the share transfer is subject to future
approval by the Australian government and certain third parties as well as various other contractual conditions,which if not satisfied, may result in the sale of some or all of the projects not occurring, or even if completed, resultin a difference between the contract price and the actual sale price. The net income generated by the target
companies to be attributed to Tokyo Gas until completion of the share transfer, including for the financial year
ending March 2023, will be deducted from the gain or loss on sale (the net income of the target companies for thisconsolidated financial year is approximately 300 million USD).
The impact of this transaction is not included in the consolidated results for the financial year ending March 2023
or the forecast for the financial year ending March 2024
3) (Change in accounting policies)
Change to revenue recognition standards for city gas sales
The sale of city gas involves contractual obligations to be delivered throughout a contract period. The
performance obligation is fulfilled whenever delivery is made. The Company previously recognized revenue on
the basis on the date of meter reading in accordance with the gas business accounting rules. On October 1, 2021,
the transitional measure rate regulations were lifted. The Company carried out an absorption-type company split
to transfer its gas pipeline business to Tokyo Gas Network Co,. Ltd., a wholly-owned subsidiary that has been
operating the Company’s gas pipelines since April 1, 2022. Owing to this, the Company has ceased to be a general19gas pipeline service provider as set forth in the gas business accounting rules. Consequently, revenues associatedwith the sale of city gas from the fiscal year under review are recognized on the basis of delivery by reasonably
estimating the performance obligation that is fulfilled at the end of the fiscal year.
This change in accounting policies is retroactively applied, with the change being applied to consolidated
financial statements for the previous consolidated fiscal year retroactively.
Consequently, in comparison to the figures prior to the retroactive application of changes, net sales, gross profit,
operating profit, ordinary profit and profit before income taxes increased ¥9,662 million, respectively. Notes andaccounts receivable - trade, and contract assets on the consolidated balance sheets of the fiscal year ended March
31, 2022, increased ¥34,143 million, deferred tax assets decreased ¥9,560 million and retained earnings increased¥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 beginningof the fiscal year ended March 31, 2022.
4) (Changes in presentation)
Change from presentation of consolidated financial statements based on “gas business accounting rules” to those
based on the “Consolidated Financial Statements Ordinance”
As 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 as of April 1, 2022. As a result, the Company's
consolidated financial statements, which had been prepared under the Ordinance on the Terminology, Forms,
and Preparation Methods of Consolidated Financial Statements ("Consolidated Financial Statements
Ordinance") and the gas business accounting rules until the fiscal year ended March 31, 2022. Starting from theconsolidated fiscal year under review, consolidated financial statements have been prepared under theConsolidated Financial Statements Ordinance. Details of the main changes are as follows:
1 Consolidated balance sheets(1) The fixed array method was employed in the previous consolidated fiscal years. The fluid array
method has been employed from the fiscal year under review.
(2) In previous fiscal years, property, plant and equipment were presented for each individual function.
However, from the fiscal year under review, they are being presented by individual asset type.
To reflect this change in presentation method, the consolidated balance sheets for the previous
consolidated fiscal year 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
2.

Consolidated statements of income(1) In the previous consolidated fiscal year, cost items were presented under “Selling, general andadministrative expenses pertaining to the supply of gas,” but from the consolidated fiscal year underreview, cost items are being presented under “Selling, general and administrative expenses.”(2) In the previous consolidated fiscal year, expenses pertaining to the supply of gas were included in“Selling, general and administrative expenses pertaining to the supply of gas,” but from theconsolidated fiscal year under review, they are being included and presented under “cost of sales.”(3) In the previous consolidated fiscal year, miscellaneous business costs incurred in association withthe gas business and incidental costs were included in and presented under the “cost of sales.” Fromthe consolidated fiscal year under review, depending on the nature of the expense, it is being included
and presented under “cost of sales” or “selling, general and administrative expenses.”
To reflect this change in presentation method, the consolidated statements of income for theprevious consolidated fiscal year have been restated as follows.

20

Before restatement(From April 1, 2021, to March 31, 2022)
1,545,590
Cost of sales
Selling, general and
480,829
administrative expenses(Million yen)
After restatement(From April 1, 2021, to March 31, 2022)
1,766,392
Cost of sales
Selling, general and
260,941
administrative expenses

Change in presentation of financial assets and financial liabilities due to recording of derivative transactions at fairvalue
The Tokyo Gas Group conventionally presented the total amount for financial assets and financial liabilities,
based on the posting of derivative transactions at fair value to “other current assets,” “other current liabilities,”and “other investments,” and “other non-current liabilities,” in its consolidated balance sheets. Regarding
financial assets and financial liabilities that fulfill requirements stipulated under the Practical Guidelines for
Accounting for Financial Instruments (Accounting Practice Committee Statement No. 14), the Tokyo Gas Groupis changing its method of presentation to more appropriately present the group’s financial position by offsetting
the financial assets and liabilities. To reflect this change in presentation method, we are restating the consolidated
financial statements for the previous consolidated fiscal year. The detailed changes are shown below.
(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 liabilities
5) (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.
In November 2021, the Company formulated Compass Action, a detailed roadmap for achieving the Group’s
management vision, Compass 2030, and on April 1, 2022, transitioned to a holding company structure to build asystem that will embody this vision. In light of this, the Company has trimmed down the number of reporting
segments to four, the “energy solution,” “network,” “overseas,” and “urban development” segments, starting in
FY2022, in comparison with its previous five report segments, which were “gas,” “electric power,” “overseas,”“energy related,” and “real estate.”That being said, the main business operations of each reporting segment is as follows.
“Energy solution”: Production and sales of city gas, LNG sales, trading, electricity, engineering solutions(engineering, energy services, etc.), etc.
“Network”: Transmission service of city gas, etc.
“Overseas”: Offshore resource development and investment, energy supply, etc.
“Urban development”: Real estate development and leasing, etc.
2. Calculation of net sales, profit and loss, and assets, etc.
Profit or loss of reporting segments is based on operating profit or loss plus or minus investment gain or loss onequity method.
Intersegment sales and transfers are attributable to transactions within group companies, and calculated based onmarket value.
As mentioned in the “Change in accounting policies,” the Company has changed its revenue recognition method
for city gas sales to a delivery basis, starting from the consolidated financial statements for the consolidated fiscal
year under review, and therefore the calculation of profit and loss for the reporting segment is being changed
accordingly.
This change in accounting policy is retroactive. The consolidated financial statements for the previous consolidated
fiscal year are stated to reflect changes to accounting policy retroactively. In comparison with conventional methods,“gas” sales and segment profit in the previous consolidated fiscal year increased ¥966.2 million, respectively.
21

3. Information related to net sales, profit and loss, and assets, etc. by reporting segment
Fiscal year ended March 31, 2022 (from Apr. 1, 2021 to Mar. 31, 2022)(Unit: million yen)
Reporting segment
Electric
power

Gas

Net sales
External sales
Intersegment sales& transfers
Total
Segment profit(loss)
Operating profit(loss)
Investment gain
(loss) on equity
methodTotal
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)

— 2,154,860

1,288,618

465,066

80,257278,21132,194 2,144,346

10,513 2,154,860

165,048

2,738

5,674

53,101

25,767

97,0291,453,666

467,804

85,931

331,31257,961 2,396,676

112,309

11,11725,487

12,81812,532

174,264

1,998

176,263-48,737

127,525

—

—

2,765

—

934

3,699

25

3,725

—

3,725

112,309

11,11728,252

12,81813,466

177,964

2,024

179,988-48,737

131,251

1,552,698

335,426

433,397

256,637

288,196 2,866,356

39,610 2,905,966

281,660 3,187,627

143,168

8,853

19,742

13,08012,570

197,415

3,410

200,826-4,016

196,810118,096

7,916

51,976

16,812

10,256

205,057

1,725

206,783-7,449199,334

252,329

349,359

107,542 2,504,219—-349,359-349,359 2,154,860

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 -¥48,737 million segment profit or loss adjustment includes -¥1,415 million in eliminations forintersegment transactions and -¥47,321 million of companywide expenses not allocated to the respective
reporting segments. Companywide expenses are primarily, general and administrative expenses that are notassignable to a reporting segment.
(2) The ¥281,660 million segment assets adjustment includes ¥362,498 million of companywide assets notallocated to the respective reporting segments, and -¥80,837 million of net eliminations for intersegment
obligations. Companywide assets are primarily, financial assets that are not assignable to a reporting segment.
3. Segment profit or loss is adjusted to reflect operating profit recorded in the consolidated statement of income
which is adjusted by investment gain or loss on equity method.

22

Fiscal year ended March 31, 2023 (from Apr. 1, 2022 to Mar. 31, 2023)(Unit: million yen)
Reporting segment
Energy solution

Net sales
External sales
Intersegment sales& transfers
Total
Segment profit(loss)
Operating profit(loss)
Investment gain (loss)
on equity method

Total
Segment Assets
OthersDepreciation
expenses
Increase inproperty, plant,
equipment, andintangible assets

Network

Overseas

Urban
development

Total

Adjustments(Note 1)

Amountrecorded on
consolidated
statement ofincome(Note 2)2,982,254

128,822

142,164

36,392

3,289,634—

3,289,634

48,933

241,563

17,74826,283

334,529-334,529—

3,031,188

370,385

159,91262,676

3,624,163-334,529

3,289,634

366,081-339

73,046

14,392453,180-31,703421,477-99—-5,135785-4,450—-4,450365,981-339

67,911

15,177448,730-31,703

417,027

1,597,395

697,667

620,844304,635

3,220,543

360,881

3,581,425

67,232

102,53124,504

12,441

206,709-1,633205,076

70,05484,28730,46824,467

209,278-1,282

207,996

Notes:
1. The “Adjustments” indicates as follows;(1) The -¥31,703 million segment profit or loss adjustment includes -¥2,733 million in eliminations forintersegment transactions and -¥28,969 million of companywide expenses not allocated to the respective
reporting segments. Companywide expenses are primarily, general and administrative expenses in parent
company that are not assignable to a reporting segment.
(2) The ¥360,881 million segment assets adjustment includes ¥411,141 million of companywide assets notallocated to the respective reporting segments, and -¥50,260 million of net eliminations for intersegment
obligations. Companywide assets are primarily, financial assets in parent company that are not assignable to areporting segment.
2. Segment profit or loss is adjusted to reflect operating profit recorded in the consolidated statement of income
which is adjusted by investment gain or loss on equity method.

23

4. Matters related to changes to the reporting segments
In FY2022, the Company changed its reporting segments to the following four segments: “energy solution,”“network,” “overseas,” and “urban development.”
Then, given that sales and segment profits/losses in the previous consolidated fiscal year were not gathered basedon the reporting segment classifications after changes were made, it is difficult for practical purposes to calculate
sales and segment profits/losses based on this. Information related to sales and segment profits/losses for the
consolidated fiscal year under review prior to segment changes are as follows.
Fiscal year ended March 31, 2023 (from Apr. 1, 2022 to Mar. 31, 2023)(Unit: million yen)
Reporting segment
Electric
power

Gas

Net sales
External sales
Intersegment sales& transfers
Total
Segment profit(loss)
Operating profit(loss)
Investment gain (loss)
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)

— 3,289,634

1,919,794

848,894

142,164

328,957

36,392 3,276,204

13,430 3,289,634

311,121

7,555

17,77936,202

26,287

93,8422,230,915

856,450

159,944

365,159

62,680 3,675,150

107,273 3,782,423-492,789 3,289,634

294,218

51,10775,231

16,032

14,654451,245

11,695462,940-41,463

421,477——-5,135—785-4,350-99-4,450—-4,450446,894

11,595458,490-41,463

417,027

398,946

492,789—-492,789

294,218

51,10770,096

16,032

15,4401,489,660

418,957

491,181266,210300,269 2,966,279

36,816 3,003,096

578,328 3,581,425

143,703

11,291

24,504

14,627

12,441

206,568

2,565

209,134-4,058205,076

110,288

22,44930,46820,606

24,467208,280

2,021

210,302-2,306

207,996

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) Segment profit or loss was adjusted -¥41,463 million. This includes eliminations for intersegment
transactions of -¥2,084 million and companywide expense not allocated to a respective reporting segmentof -¥39,378 million. Companywide expenses mainly consist of general expenses at the parent company thatare not allocated to a respective reporting segment.
(2) Segment assets were adjusted ¥578,328 million. This includes companywide assets not allocated to arespective reporting segment of ¥653,720 million and net eliminations of intersegment obligations of ¥75,391 million. Companywide assets mainly consist of financial assets at the parent company that are notallocated to a respective reporting segment.
3. Segment profit or loss is adjusted to reflect operating profit recorded in the consolidated financial statements
which is adjusted by investment gain or loss under the equity method.

246) (Per share information)(Unit: yen)

FY2021(Apr. 2021–
Mar. 2022)
2,847.88
217.67

FY2022(Apr. 2022 –Mar. 2023)
3,595.60
646.99

Shareholders’ equity per share
Profit per share
Notes:
1. Diluted profit per share is not disclosed as no latent shares exist.
2. As mentioned in (Changes to accounting policies), changes to accounting policies in the consolidated fiscal year
under review have been applied retroactively. Regarding the previous consolidated fiscal year, we are calculating
numerical figures after application of changes retroactively.
Consequently, in comparison to the figures prior to the retroactive application of changes, net assets per share forthe previous consolidated fiscal year were ¥55.93 and the net profit per share increased ¥15.83.
3. Basis for calculation of profit per share is as follows.
FY2021
FY2022(Apr. 2021–(Apr. 2022 –Mar. 2022)
Mar. 2023)
Profit attributable to owners of parent (million yen)
95,702
280,916
Not attributable to common shareholders (million yen)——
Profit attributable to owners of parent with regard to the common
95,702
280,916
shares (million yen)
Average number of common shares outstanding (thousand shares )439,673434,188
4. Basis for calculation of BPS is as follows.
Shareholders’ equity (million yen)
Deduction from shareholders’ equity (million yen)
-Shares of minority shareholders (million yen)
Net shareholders’ equity attributable to common shares (million yen)
Number of shares to calculate BPS (thousand shares)

FY2021
FY2022(as of Mar. 31, 2022) (as of Mar. 31, 2023)
1,281,150
1,589,301
29,36830,89629,36830,8961,251,781
1,558,404
439,548
433,420

5. We are introducing a Director Stock Ownership Plan from the previous consolidated fiscal year.
Shares held in a trust account are included in treasury stock that are excluded for calculating the average numberof shares outstanding during a fiscal year in calculating net income per share and are included in treasury stockthat are excluded from the number of issued shares at the end of the fiscal year when calculating net assets per
share.
The number of excluded treasury stock from the average number of shares outstanding during a fiscal year for
calculating the net income per share was 149,667 shares in the previous consolidated fiscal year and 219,467
shares in the consolidated fiscal year under review. The number of excluded treasury stock at the end of the fiscal
year for calculating net assets per share was 223,800 shares for the previous consolidated fiscal year and 218,500
shares in the consolidated fiscal year under review.
7) (Material subsequent events)[Acquisition of treasury shares]
At its Board of Directors meeting held on April 26, 2023, the Company resolved to acquire treasury stock in accordancewith the provisions of Article 156 of the Companies Act applied with a replacement of the terms pursuant to theprovisions of Article 165, paragraph 3 of the same act.
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: 53 million (upper limit)(Rate to number of shares outstanding 12.2%)· Total value of shares to be acquired: ¥113 billion (upper limit)
· Term of acquisition: May 8, 2023– March 31, 2024

25

V. Non-consolidated Financial Statements(1) Non-consolidated Balance Sheets(Millions of yen)
As of March 31, 2022

As of March 31, 2023

AssetsCurrent assets
Cash and deposits

39,886308,643597
323,935

1,147
391,305

Merchandise and finished goods
Work in process

131
6,412

10,799Raw materials and supplies
Prepaid expenses

59,0081,336

110,205
1,414

Other current assets
Allowance for doubtful accounts

135,772-4,605

145,746-1,473

Total current assets

562,474

967,788

Property, plant and equipment
Buildings

24,15014,677Structures
Machinery and equipment

68,167580,443

43,40365,576

Tools, furniture and fixtures
Land

8,185
133,0635,626
104,327

Construction in progress
Other fixed asset

18,465
6

6,029
2

Total property, plant and equipment

832,484

239,642

120,743

96,471

Goodwill
Other intangible assets

1,021
12,249887
8,248

Total intangible assets

134,015

105,607

Investments and other assets
Investment securities

51,35649,948

Shares of subsidiaries and associates
Long-term loans receivable

498,568
197,737

647,502627,777

Deferred tax assets
Other investments

14,79442,22025,72438,190Allowance for doubtful accounts-1,677-6,101

Notes receivable - trade
Accounts receivable - tradeNon-current assets

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

26

803,001

1,383,041

1,769,500

1,728,291

2,331,975

2,696,080

(Millions of yen)
As of March 31, 2022

As of March 31, 2023

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings

43,299138,157

42,051
208,059

Accounts payable - otherAccrued expenses

61,741
91,862

42,777138,223

Income taxes payable
Contract liabilities

16,448
10,156

97,904
8,744

Advances received
Deposits received

6,505
10,374

10,933
11,233

Unearned revenue
Other current liabilities

948
92,1001,100
94,870Total current liabilities

471,596

655,898

Bonds payable
Long-term borrowings

544,998
397,778544,799425,202

Provision for retirement benefits
Provision for share awards for directors (and otherofficers)
Provision for gas holder repairs

59,59358,633

84

183

2,978

-

Provision for safety measures
Provision for contract loss in regards to appliancewarranties
Provision for point card certificates
Other noncurrent liabilities

637

-

2,620

5,176

531
14,623603
13,819

1,023,845

1,048,417

1,495,442

1,704,315

Non-current liabilities

Total non-current liabilities
Total liabilities
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

5,556

4,216

1,017
141,000

210
141,000

339,000
160,374

339,000
316,839

682,402

836,720

Other retained earnings
Reserve for tax purpose reduction entry of
non-current assets
Reserve for overseas investment loss
Reserve for adjustment of cost fluctuations
General reserve
Retained earnings brought forward
Total retained earnings
Treasury shares-3,524-3,658

Total shareholders' equity

822,787

976,972

18,357

18,072-4,612-3,279Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

27

13,745

14,792

836,532

991,7642,331,975

2,696,080

(2) Non-consolidated Statements of Income(Millions of yen)
For the fiscal year
ended March 31, 2022

For the fiscal year
ended March 31, 2023

Net sales

1,931,053

2,999,878

Cost of sales

1,662,673

2,508,130

Gross profit

268,380

491,747

Selling, general and administrative expenses

216,462

190,321

Operating profit

51,917

301,426

Interest and dividend income
Miscellaneous income

8,745
14,27615,167
5,790

Total non-operating income

23,022

20,958

3,488

3,295

5,500
6,746

5,563
4,799

Non-operating income

Non-operating expenses
Interest expenses
Interest expenses on bonds
Foreign exchange losses
Miscellaneous expenses

11,221

5,104

Total non-operating expenses

26,956

18,763

Ordinary profit

47,983

303,621Extraordinary income
Gain on sale of investment securities

2,117

2,670

2,117

2,670

-

2,114

-

11,953

Total extraordinary income
Extraordinary losses
Impairment losses
Loss on valuation of shares of subsidiaries andassociates
Total extraordinary losses-

14,068

Profit before income taxes

50,100292,222

Income taxes - current
Income taxes - deferred

10,885
1,423

98,574-11,523

Total income taxes

12,30987,050

Profit37,791

205,17128