53

Invisible Assets

Digitalization and technology
development capabilities(Innovation)
Contributing to the achievement of Sustainable Development Goals (SDGs)

In light of the recent rapid advance in technology innovation in
the distributed energy system fields, including solar power,
storage battery, and electric vehicles (EVs), we are shifting fromour previous R&D focused on gas energy to an open innovationstyle of R&D focused on a broad range of innovative energy
technologies. We will acquire distributed energy systems, AI, IoT
and other digital technologies, and business models that makeuse of them to accelerate initiatives to create new energy
businesses and new services. We will also use digitaltechnologies to enhance convenience to our customers, promote
efficiency and sophistication in operations and solve
management issues.

2017

Commenced
initiatives todevelop newtechnologies

The history and future of our innovation
Tokyo Gas history of innovation

1885

1902

1969

1981

2001

2009

2017

Tokyo Gas
establishedFirst gas equipment
to receive a patent inJapanFirst LNG Cargocame to JapanFirst natural gas
cogeneration
system introducedto Japan

Commenced
operation ofSUPREME earthquake
disaster prevention
systemLaunched salesof world’s firstresidential fuelcell system

Established Acario
Ventures

Applying and deploying advanced examples around theworld in the Japanese market

Creating new businesses and services

Through information gathering on U.S. venture firms, andinvestment in and collaboration with energy-related venture
capitals by Acario Ventures, which we established in Silicon
Valley, we absorb new technologies and business models in theenergy service business areas around the world to apply anddeploy them in the Japanese market, while making smart use of
our advantages.
Capitalinjection

Creating new energy businesses
By combining energy-saving and eco-friendly gas cogeneration
systems and storage cells, we will create new value, such asadvanced energy management for customers and providing load
adjustment capabilities required with the widespread use ofrenewable energy (participated in the verification tests in the UK).

Creating new services
We will combine our service and energy capabilities in a specificmarket, such as sales and maintenance of gas equipment andenergy, to create business and provide high added value tocustomers and society. We will create business on a broad front,
eyeing possibilities, such as development of sub-brands.
Capitalinjection

The New Business Creation ProjectDepartment was established
To be spun off into a separate
company within fiscal 2019

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TOKYO GAS INTEGRATED REPORT 2019

Society in thefuture
Low-carbon society
Hydrogen-oriented society

Future innovation

Blockchains

Smart society

Storagecells

Robotics

IoTAI

Use of data in solving management issues

Electricpower

Renewableenergy

VPP(Virtual PowerPlant)

Earthquake disasterprevention and stable supply
Comfortable, convenientand secure living

Improving productivity through Business
Process Reform (BPR), etc.

Use of the cloud, etc.
and organizational
re-engineering
Corporate operations
Contact points withcustomers

Through unified management of operation status data
concerning equipment for gas production and power generationequipment, and information on demand, prices, and ship
deployment, and by AI-enabled forecasting of equipment
operation and sales planning, we work on solving management
challenges, including optimization of equipment management
and the entire value chain.

Procurement

Transportationand production(LNG terminals andpower generation
plants)

Sales

Promoting efficiency
and sophisticationin operations
and enhancing
convenience tocustomers
Use of SNS, chats, andother digital channels
Accepting inquiries
from customers

Use of VR,tablets, etc.
On-site patrol andinspections
Proposals tocustomers

Demand forecasting

Use of digital technologies

Optimizing deployment of ships and operation ofterminals and power generation plants

Review and decluttering of operations
Thorough benchmarking

Price forecasting of crude oil, LNG and electricity
Optimizing market trade

Establishment of the Corporate
Innovation Project Department