Consolidated Subsidiaries andEquity–Method Affiliates

Editorial Policy

Consolidated Subsidiaries and Equity–Method Affiliates
As of March 31, 2012

Main Consolidated Subsidiaries
In fiscal 2011, the Company revised its editorial policy for its annual reports. The new policy calls for the stringent selection andconcentration of information, such as financial data, business strategy explanations, and information on other areas of impor-Company

BusinessCapital(¥ million)

Equity owned
by Tokyo Gas(%)

FY2011 Net sales (¥ million)[% of outside sales]

Operating income(¥ million)

tance, to better facilitate investors’ efforts to analyze the Company. For additional information, please refer to the following tools

Tokyo Gas Urban DevelopmentCo., Ltd.

Real estate leasing

11,867100.0

29,224and websites.

Ohgishima Power Co., Ltd.

Generation and supply of electricity

5,350

75.0

Nagano Toshi Gas Co., Ltd.

City gas business in Nagano Prefecture

3,800

89.2

ENERGY ADVANCE Co., Ltd.

Energy service, district heating and cooling, cogeneration orders, and maintenance

3,000

100.0

Gastar Co., Ltd.

Production, sales, and maintenance of gas appliances

2,450

66.7

29,700[43.7]

1,992

Tokyo LNG Tanker Co., Ltd.

Sea transport of LNG and LNG carrier leasing

1,200

100.0

17,118[35.1]

3,293

Tokyo Gas Energy Co., Ltd.

Sales of liquefied petroleum gas (LPG)

1,000

100.0

33,694[76.2]

5Capty Co., Ltd.

Installation of gas supply lines, water supply anddrainage lines, air conditioning systems, new construction, and construction of gas mains and service
lines

1,000

100.0

54,649[33.6]

883

Tokyo Gas Chemicals Co., Ltd.

Sales of gas for industry and chemicals and development of LNG cryogenic utilization technology

1,000

100.0

18,264[71.9]

580

Chiba Gas Co., Ltd.

Supply of city gas to Yachiyo City, Narita City, andsurrounding cities

480

100.0

17,903[96.4]

799

TG Information Network Co., Ltd.

Information processing services, software development, and sales of computer equipment, etc.

400

100.0

19,608[2.9]

311

Tokyo Gas Engineering Co., Ltd.

Comprehensive engineering services with a particularfocus on energy-related work

100

100.0

53,179[83.6]

2,965

Nijio Co., Ltd.

Procurement and sales of natural gas and electricity

47

100.0

66,939[21.1]

3,975

Details of Challenge Vision 2020
The Tokyo Gas Group’s Vision for Energy and the Future ~Challenge 2020 Vision~(Released November 2011)
http://www.tokyo-gas.co.jp/IR/english/library/pdf/vision/vision2020_01.pdf

CSR Activities
Tokyo Gas Group CSR Report
http://www.tokyo-gas.co.jp/csr/index_e.html

Financial and Industry Data (EXCEL Spreadsheet Data Available)[34.6]

4,276

59,933[25.2]

962

13,263[100.0]744

70,771[95.6]

744

Number of consolidated subsidiaries: 66

Investors’ Guide
http://www.tokyo-gas.co.jp/IR/english/library/invguid_e.html

Other Subsidiaries
TOKYO GAS AUSTRALIA PTY LTD, Tokyo Gas International Holdings B.V., Tokyo Gas Toyosu Development Co., Ltd., Tokyo Gas Bajio B.V., TOKYO GASDARWIN LNG PTY LTD, Park Tower Hotel Co., Ltd., Tokyo Gas Shale Investment Ltd., Tokyo Gas Yokosuka Power Co., Ltd., Tachikawa Urban Center

Quarterly Financial Results
Consolidated Financial Results Bulletin
http://www.tokyo-gas.co.jp/IR/english/library/earn_e.html

Co., Ltd., Tokyo Gas Lease Co., Ltd., Tokyo Gas Baypower Co., Ltd., Tokyo Gas-Mitsui & Co. Holdings Sdn. Bhd., Tokyo Gas Yamanashi Co., Ltd., TokyoOxygen and Nitrogen Co., Ltd., Tokyo Gas Lifeval Chiba Co., Ltd., Tsukuba Gakuen Gas Co., Ltd., Tokyo Carbonic Co., Ltd., TOKYO GAS QCLNG PTYLTD., TOKYO GAS PLUTO PTY LTD, Tokyo Gas Lifeval Sagamihara Co., Ltd., TOKYO GAS GORGON PTY LTD, TOKYO GAS ICHTHYS PTY LTD., Japan
Super Freeze Co., Ltd., Miho Gas Co., Ltd., Tokyo Gas Telemarketing Co., Ltd., Tokyo Gas LPG Terminal Co., Ltd., Shoei Gas Co., Ltd., Kawasaki Gas
Pipeline Co., Ltd., Tokyo Gas Chemicals Sales, Inc., Tokyo Gas Auto Service Co., Ltd., Living Design Center Co., Ltd., Tokyo Gas Remodeling Co., Ltd.,Tokyo Gas Lifeval Minami-Tama Co., Ltd., TOKYO GAS WA258P PTY LTD, Washinomiya Gas Co., Ltd., Urban Communications, Inc., Tochigi Gas Co.,
Ltd., Capty Tech Co., Ltd., Tokyo Gas Pipeline Co., Ltd., Tokyo Gas Facility Service Co., Ltd., TGI Financial Solutions Co., Ltd., Tokyo Gas Lifeval MinamiSetagaya Co., Ltd., Tokyo Gas Lifeval Higashi-Ohta Co., Ltd., Tosetz Co., Ltd., Tokyo Kiko Co., Ltd., Enelife Carrier Co., Ltd., Tokyo Gas Lifeval Kazusa
Co., Ltd., Tokyo Auto Gas Co., Ltd., Showa Unyu Co., Ltd., Tokyo Rare Gases Co., Ltd., TGE (Shanghai) LNG Engineering CO., LTD., Capty-Livelic Co.,
Ltd., TG Europower B.V.

Equity-Method Affiliates
TOKYO TIMOR SEA RESOURCES INC.
GAS MALAYSIA SDN. BHD.
East Japan Housing Evaluation Center Co., Ltd.
Bajio Generating VOF
MT Falcon Holdings Company, S.A.P.I. de C.V.
Numerical targets for fiscal 2012 are based on information available when the figures wereannounced (April 27, 2012) and on the judgment of management. The Company undertakes
timely disclosures to Tokyo Stock Exchange of the latest information, which it also releaseson the IR page of its web site (http://www.tokyo-gas.co.jp/IR/english/ir_e.html).

51

Contents

Contents

Operating Performance andImpacting Factors

Key Points and Progress ofGrowth Strategies

0217P.
Operating Performance in Fiscal 2011
A Three-Minute Overview––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

P.

02

Growth Strategy—Enhancing the LNG Value Chain––––––––––––––––––––––––––––––––––––––––

17Reducing Resource Costs and Expanding
Overseas Operations––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

18

Building a Production and Supply Infrastructure
to Cultivate Demand

22

Providing Diverse Energy Solutions–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

24––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

28––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

Capital Expenditures Plan

Policies of Management

Key Points Regarding
Corporate GovernanceSystems

04

P.
Discussion with the President

04

Corporate Governance––––––––––––––––––––––––––––

05

Overview of Corporate Governance Systems–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

05

Internal Control System–––––––––––––––––––––––––––––––––––––––––––––

06––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

06

Outside Directors––––––––––––––––––––––––––––––––––––––––––––––––––––––

Highlights of the enhancement of the LNG value chain
Scenario for reducing resource prices

Approach toward acquiring upstream interests
Policy on unconventional natural gas

Scenario for augmenting gas sales volume06–––––––––––––––––––––––––––––––––––––––––––––––––––––

Conditions for making decisions on infrastructure
investments that have not yet been determined07––––––––––––––––––––––––––––––––––––––––––––

Background behind the scale ofelectric power generation business

Chances of actual results surpassing forecasts
Forecast for fiscal 2012

3030–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

31–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

32––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

32

Officer Remuneration
Advisory Committee–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––32––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

33–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

33

Audits by Corporate Auditors
Compliance––––––––––––––––––––––––––––

07––––––––––––––––––––––––––––––––––––––––––––

07

Risk Management System*–––––––––––––––––––

08–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

08

Projection in cash flow distribution and shareholder returns

29–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

07

Time when “ENE-FARM” began contributing to profits––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

Independent Auditors––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

29

P.

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

Earthquake and Disaster Countermeasures––––––––––––––––––––––––––––––––––––––––––

Toward the Realization of a Safe Gas Supply
that is Even More Resistant to Disaster Damage
Board of Directors and Corporate Auditors

34
36––––––––––––––––––––––––––––––

36––––––––––––––––––––––––––––––––––––––––––––

37* The Company’s recognition of and countermeasures for risks pertaining to business strategies in
response to investor inquiries

Overview and Potential ofTokyo Gas

09

Management’s Analysis ofOperating Performance inFiscal 201140

P.
Overview and Potential of Tokyo Gas
The Potential of Natural Gas

P.

––––––––––––––––––––––––––––––––

09

Management’s Discussion and Analysis––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

10

Consolidated Financial Statements

Understanding Tokyo Gas through Comparison–––––––––––––––––––––––––––––––Developing Business through the LNG Value Chain––––––––––––––––––––––

1214–––––––––––––––––––––––

40––––––––––––––––––––––––––––––––––––––

46–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

51

Consolidated Subsidiaries andEquity-Method Affiliates01