40 Management’s Discussion and Analysis
Management’s Discussion and Analysis
Summary

Under the gas rate adjustment system, fluctuations in the price ofIn the fiscal year under review, ended March 31, 2012, gas sales

crude oil can take as long as five months before they are reflected in gas

volume increased 3.0% year on year, to 15,190 million m3, owing torates. For this reason, while fluctuation in crude oil prices can cause

high demand for gas for power generation purposes following theshort-term fluctuations in the Company’s earnings and operating ex-

Great East Japan Earthquake, which occurred on March 11, 2011.

penses, particularly on an individual fiscal year basis, the long-term per-The rise in gas sales volume, together with an increase in gas

cussions are minimal.

unit prices under the gas rate adjustment system, pushed up

In the fiscal year under review, the JCC was consistently high, ini-

sales of city gas. Also, full-year operation of the No.2 unit at the

tially remaining in the range of US$110–119 per barrel. While the priceOhgishima Power Station as well as strong demand for power

temporarily fell below US$110 per barrel in November 2011, it later

generation following the earthquake contributed to higher electricsoared to US$120 per barrel in March 2012. For the full fiscal year, thepower sales. Consequently, net sales climbed 14.3% year on

average was US$114.16 per barrel, up US$30.01 from the previous

year, to ¥1,754.2 billion. Operating expenses rose 18.7%, toyear. In foreign exchange rates, the yen remained at a high level, and the¥1,677.1 billion, as the higher price of LNG and increased gas

average yen–dollar exchange rate was ¥79.08 for the full fiscal year, re-sales volumes drove up raw material costs. As a result, operating

flecting the yen’s appreciation of ¥6.66 compared with a year earlier.

income decreased 37.1%, to ¥77.0 billion, and ordinary income

As a result, the year’s trends in crude oil prices had the effect ofwas down 37.8%, to ¥75.6 billion. Net income fell 51.8%, to ¥46.0

pushing up the Company’s LNG purchase price and contributing to in-billion, largely due to the rebound from last year’s recording ofcreases in sales and gas resource costs.

¥39.7 billion in extraordinary income from the sale of land in Toyosu and the reduction in deferred tax assets that accompanied aPrices of Crude Oil and LNG

change in tax systems.

US$/MMBtu

With respect to appropriations to shareholders, the Company
maintained its existing policy of a total payout ratio of 60%. Thismeans the sum of cash dividends and share repurchases will be
at least 60% of net income for the year.

Operating Environment in the Year under Review
Macroeconomic Conditions

US$/barrel

20

160

15

120

10

80

5

40

0

In the fiscal year under review, the Japanese economy experienced

11/4

5

6

7

8

9

10

11

12

12/1

2

3

10

11

12

12/1

2

3

0

All Japan LNG prices (Trade statistics) (left)
JCC prices (Trade statistics) (right)

harsh conditions due to the lingering impacts of the Great East Japan
Earthquake. In this environment, a gradual trend toward recovery wasseen centered on domestic demand. Following the earthquake, Japan’s
energy market is now faced with the tasks of addressing the electricity
shortages in the Tokyo metropolitan area in the short term, and reevalu-

Yen–Dollar Exchange Rate
Yen/US$
90

ating energy’s role in society from a medium- to long-term perspective.
Against this backdrop, natural gas, which is known to be easier to supply and more economically sound, convenient, and environmentally80

friendly, has been gathering a great deal of attention from society. In
particular, industrial demand, or in other words sales volumes of natural
gas for power generation purposes, increased greatly year on year. This

70

11/4

5

6

7

8

9

can be attributed to a rise in demand from independent power producers (IPPs), power producer and suppliers (PPSs), and other power providers; higher demand for gas to be used in customers’ in-housecogeneration systems; and full-year contributions from the No.2 unit at

Analysis of the City Gas Businessthe Ohgishima Power Station, in which the Company is investing.

Sales increased year on year across three sectors (residential,
industrial, and wholesale), while sales in the commercial and oth-Influence of Fluctuating Oil Prices and Foreign Exchange Rates

ers sectors declined due to residual impacts of the earthquake.

on the Company’s Operations

Residential Sector

The purchase price of LNG, which accounts for the majority of the re-

There was a decline in sales volume per customer due to a decrease insources used in the Group’s core city gas business, is linked to the Ja-

the number of household occupants and the accelerated movement

pan Customs-cleared Crude price (hereafter JCC). It is therefore

toward energy and electricity saving. However, there was a rise in cus-

exposed to risks related to fluctuations in crude oil prices. In addition,

tomers’ higher demand for hot water and indoor heating that followed

since contracts are denominated in U.S. dollars, earnings are at risk

the cold winter. Accordingly, residential demand grew 0.5%, to 3,538

from fluctuations in the yen–dollar exchange rate.

million m3.

Management’s Discussion and Analysis

Commercial and Others Sector

Net Income and Net Income per Share (Years ended March 31)

While customer numbers were up, trends such as the shortening of¥ billion

work hours and cancelling of school that followed the earthquake re-

120

60

90

45

60

30

30

15

sulted in decreased operating times of facilities. Consequently, commercial demand declined 7.1%, to 2,827 million m3.
Industrial Sector
Year-long contributions from the No.2 unit at the Ohgishima Power Station, higher usage of cogeneration and in-house generation systems following the earthquake, and demand from general industry that wasbuoyed by moderate economic recovery resulted in a 9.9% increase in

0

¥

08

09

10

11

0

12

Net income (left)
Net income per share (right)

industrial demand, to 6,856 million m3.
(Reference) Comprehensive Income (¥ million)
Wholesale Sector

Years ended March 31

As a result of increased demand from other gas utilities, wholesale sup-Income before minority interests

plies grew 1.2%, to 1,970 million m3.

Other comprehensive income

As a result, the overall gas sales volume increased 3.0%, or 445
million m3, to 15,190 million m3.

Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

Gas Sales Volume by Sector (Years ended March 31)
16,00012,0008,000

2012

96,07047,329(5,375)86(604)(1,783)(7,095)(4,266)

Share of other comprehensive income ofassociates accounted for using equity
method(2,554)(2,129)Total other comprehensive income(15,630)(8,092)Comprehensive income

80,44039,237

Foreign currency translation adjustment

Million m3, 45MJ/m3

2011

4,000
0

08
Residential

09

10

Commercial and others

11
Industrial

12
Wholesale

Analysis of Segments
City Gas Sales
Tokyo Gas and certain consolidated subsidiaries conduct sales of city

Analysis of Income and Expenses

gas. Not only is such gas provided to general customers, it is also soldto the Group’s power plants. (External sales ratio: 93.4%)

Sales and income up
In the fiscal year under review, gas sales increased 14.9%, or ¥169.2

Gas Appliances and Installation Workbillion, to ¥1,306.2 billion, due to higher gas unit prices under the gas

We sell gas cooktops, water heaters, gas air conditioning systems thatrate adjustment system and a 3.0% rise in gas sales volume. As a result,use hot water, “ENE-FARM” residential fuel cells, gas heat pump air

total net sales rose 14.3%, or ¥219.0 billion, from the previous year, toconditioning systems, and other products. These sales are mainly han-

¥1,754.2 billion.

dled by Tokyo Gas LIFEVAL, Enesta, and Enefit, which represent the

Operating expenses increased 18.7%, or ¥264.4 billion, to ¥1,677.1

core of Tokyo Gas’ community-based marketing system. We also installbillion, following a ¥189.3 billion increase in raw material costs due togas pipes and valves in properties owned by customers in our service

higher LNG prices and gas sales volumes. As a result, operating income

area. (External sales ratio: 92.2%)

decreased 37.1%, or ¥45.4 billion, to ¥77.0 billion.
Ordinary income decreased 37.8%, or ¥45.9 billion, to ¥75.6 billion,

Other Energies

as foreign exchange gains of overseas subsidiaries declined ¥1.0 billion

This segment’s operations consist of business relating to energy

and income from weather derivatives fell ¥0.9 billion.

services (including LNG sales), LPG, electric power, industrial gas, andIn the fiscal year under review, we experienced the rebound from last

others. (External sales ratio: 85.9%)

year’s recording of ¥39.7 billion in extraordinary income from the sale ofA large percentage of this segment’s sales comes from the electric

land in Toyosu to the Tokyo Metropolitan Goverment and a ¥4.4 billion

power business and in the fiscal year under review the No.2 unit at the

reduction in deferred tax assets that accompanied a change in tax sys-

Ohgishima Power Station contributed to sales throughout the full year.

tems. As a result, net income was down 51.8%, or ¥49.4 billion, to ¥46.0

As a result, segment sales were up 45.0% year on year, or ¥31.6 billion,

billion. Further, on a non-consolidated basis, Tokyo Gas recorded slideto ¥101.8 billion, and operating income rose 30.7%, or ¥1.9 billion, totime lag effect of ¥18.1 billion and amortization of actuarial differences of¥7.9 billion.

¥22.7 billion, which placed downward pressure on operating income.

41

42 Management’s Discussion and Analysis

Real Estate

Financial Position

This segment includes mainly leasing and management of land andAssetsbuildings. Major properties include the Shinjuku Park Tower and land

At fiscal year-end, total assets amounted to ¥1,863.8 billion, up 1.9%, orand buildings in such areas as Ginza and Gofukubashi. (External sales¥34.2 billion, from a year earlier. Total property, plant and equipment

ratio: 35.7%)

declined 1.3%, or ¥14.7 billion, to ¥1,105.5 billion, due to progressive
depreciation. Total intangible assets jumped 18.4%, or ¥7.6 billion, toOther¥48.7 billion, due mainly to investments in software. Total investments

This segment includes information processing, shipping, credit and leas-and other assets declined 4.5%, or ¥10.2 billion, to ¥218.7 billion, fol-ing, and construction. (External sales ratio: 49.7%)

lowing a decrease in investment securities.

Business Results by Segment (¥ million)
Sales

billion. This is primarily attributable to the fact that notes and accounts

Total current assets increased 11.7%, or ¥51.5 billion, to ¥490.8
receivable–trade rose 32.4%, or ¥51.8 billion, to ¥211.9 billion, which

Years ended March 31

2011

2012

offset the decline in cash and deposits of 11.2%, or ¥10.2 billion, to

1,137,077

1,306,262

Gas appliances and installation work

177,472

187,628

Other energies

221,292

302,593

Real estate

32,797

29,675

Other

162,302

181,880

liabilities increased 7.6%, or ¥49.2 billion, to ¥695.9 billion, due to in-

Total

1,730,942

2,008,040

creases in bonds payable of 6.4%, or ¥20.0 billion, and in long-term

Adjustments(195,699)(253,782)

loans payable of 23.0%, or ¥43.3 billion. Total current liabilities rose

Consolidated

1,535,242

1,754,257

City gas sales

Sales figures for each segment include intersegment transactions.

Liabilities
Total liabilities at the end of the fiscal year stood at ¥1,008.7 billion, up
5.6%, or ¥53.2 billion, from the previous fiscal year end. Total noncurrent

1.3%, or ¥4.0 billion, to ¥312.8 billion, as a result of an increase in notes
and accounts payable–trade of 21.6%, or ¥16.5 billion, to ¥92.6 billion,
which offset the declines in current portion of noncurrent liabilities of
10.5%, or ¥5.1 billion, to ¥43.6 billion, and in other current liabilities ofOperating Income
Years ended March 31

2011

2012

136,181

97,404

Gas appliances and installation work

1,872

3,129

Other energies

11,166

10,924

Real estate

5,713

3,301

Other

9,907

7,066

Total

164,841

121,826

Adjustments(42,389)(44,751)

Consolidated

122,451

77,075City gas sales

Operating income figures for each segment include intersegment transactions.

2.9%, or ¥4.0 billion, to ¥129.2 billion.
Net Assets
Total net assets decreased 2.2%, or ¥18.9 billion, to ¥855.1 billion. This
was a result of the 1.4%, or ¥11.6 billion, decrease in total shareholders’equity following the recording of purchase of treasury stock of ¥34.0
billion and dividends from surplus of ¥23.6 billion, which offset net income of ¥46.0 billion.
Changes in Treasury Stock
In the fiscal year under review, treasury stock decreased 6.7%, or ¥0.2
billion, to ¥2.1 billion, as the Company cancelled all 93,478 thousands
shares of treasury stock acquired through market purchase.

Contribution to Net Sales by Segment
Years ended March 31¥80.1 billion.

2011

2012

ChangeCity gas sales

65.6%

65.0%

–0.6 point

Gas appliances andinstallation work

10.3%

9.3%

–1.0 pointdue the recording of purchase of treasury stock of ¥34.0 billion andOther energies

12.8%

15.1%

+2.3 points

dividends from surplus of ¥23.6 billion, which offset net income of ¥46.0

Real estate

1.9%

1.5%

–0.4 point

billion. As total assets rose 1.9%, or ¥34.2 billion, to ¥1,863.8 billion, the

Other

9.4%

9.1%

–0.3 point

Equity Ratio
Total equity decreased 2.3%, or ¥19.8 billion, to ¥839.1 billion. This wasequity ratio declined 1.9 percentage points, to 45.0%.
Interest-Bearing Debt
In the year under review, total interest-bearing debt increased 7.1%, or¥41.7 billion, to ¥625.8 billion As a result, the D/E ratio rose 0.07 point,
to 0.75.

Management’s Discussion and Analysis

Credit Ratings

As of March 31, 2012

Moody’s

Aa3

High creditworthiness and very low credit risk to meetlong-term obligations.

S&P

AA–

Very strong capacity to meet obligations. Difference
from the highest rating, AAA, is small. (Plus and minus
signs indicate relative standing within each rating category.)

Cash Flows from Investment Activities
Net cash used in investing activities was ¥101.8 billion, compared with
¥172.3 billion in the previous fiscal year. This can mainly be attributed to

R&I

AA+

Very high creditworthiness supported by some excellent factors.

JCR

AAA

The highest level of capacity of the obligor to honor its
financial commitment on the obligation.

proceeds from sales of noncurrent assets of ¥46.4 billion, up ¥45.8 billion, and a decrease in purchase of investment securities of ¥20.6 billion,to ¥1.1 billion.
Cash Flows from Financing Activities
Net cash used in financing activities was ¥16.4 billion, compared with
¥7.2 billion in the previous fiscal year. While proceeds from long-termloans payable increased ¥50.9 billion, to ¥68.2 billion, decrease in com-

Total Equity and Equity Ratio (At March 31)

mercial papers was ¥15.0 billion, compared with increase in commercial¥ billion

%

1,000

50

800

40

600

30

400

20

Operating Cash Flow

200

10

Aiming to aggressively invest in the gas business to prepare for future0

growth in demand, Tokyo Gas has made operating cash flow a key

0

08

09

10

11

12

papers of ¥15.0 billion in the previous fiscal year; purchase of treasury
stock was up ¥25.7 billion, to ¥34.0 billion; and redemption of bonds
increased ¥10.0 billion, to ¥30.0 billion.

management indicator and has disclosed its allocation policy. Operating

Total equity (left)
Equity ratio (right)

cash flow is calculated by adding depreciation to net income.
Operating cash flow for the fiscal year ended March 31, 2012,

Interest-bearing Debt and D/E Ratio (At March 31)

amounted to ¥194.5 billion, a year-on-year decrease of ¥50.3 billion.

¥ billion

Times

800

0.8

600

0.6

400

0.4

200

0.2

0

0

The lower figure reflects a ¥49.4 billion decrease in net income and a¥0.8 billion decrease in depreciation.
Total Payout Ratio
Tokyo Gas has set an objective of a 60% total payout ratio, which means
to return 60% of net income to shareholders, as an indicator of its commitment to shareholder returns. Specifically, we define this new indicator

08

09

10

11

12

Interest-bearing debt (left)
D/E ratio (right)

as the ratio of the sum of the income distributed as dividends funded by
net income in FY n and share repurchasing in FY n+1 to the net income
in FY n.
The Company plans dividends of ¥9.00 per share for the fiscal year

Capital Expenditures and Depreciation

ended March 31, 2012, unchanged from the previous year, and share

Capital expenditures decreased 2.5%, or ¥3.8 billion, to ¥146.4 billion.

repurchases of ¥50.0 billion in the fiscal year ending March 31, 2013. As

This was largely due to the absence of the investments recorded lasta result, the total payout ratio for the fiscal year ended March 31, 2012,

year in the Ohgishima Power Station, which commenced operations

was 61.4%.

during the previous fiscal year. Similarly, depreciation was down 0.6%,
or ¥0.8 billion, to ¥148.5 billion.

Cash FlowsIn regard to dividends, we maintained dividends at ¥9.00 per share.
In the future, our priority is to ensure stable dividends, with consideration
for gradual increases over the long term and without reducing dividends.
With respect to share repurchases, our basic principle is to cancel

Cash Flows from Operating Activities

the shares. In the fiscal year ended March 31, 2012, we purchased

Net cash provided by operating activities decreased ¥12.5 billion year

treasury stock totaling ¥50.0 billion, and these shares were cancelled inon year, to ¥149.8 billion. This was primarily due to a decline in income

June 2012.

before income taxes of ¥80.8 billion, to ¥74.6 billion, and a rise in increase of notes and accounts receivable–trade of ¥45.3 billion, to ¥52.3
billion. These factors outweighed the recording of increase in notes andaccount payable–trade of ¥21.8 billion, compared with decrease innotes and account payable–trade of ¥52.5 billion in the previous fiscal
year, and a decline in decrease in provision for retirement benefits of¥22.9 billion, to ¥11.2 billion.

Millions of yen
Years ended March 31

Net cash provided byoperating activities
Net cash used in investment
activities
Net cash provided by(used in) financing activities

2010

2011

2012

294,110

162,345

149,818(177,290)(172,305)(101,810)(69,375)(7,212)(16,454)43

44 Management’s Discussion and Analysis

Key Management Indicators

Residential Sector

ROA and ROE worsened due to lower net income.

The rebound from the weather-related benefits experienced in the fiscal

ROA

year under review will likely result in gas sales volumes to the residential

The average balance of total assets remained relatively unchanged,

sector declining 2.1%, to 3,464 million m3.

however net income dropped 51.8% year on year, to ¥46.0 billion. AcCommercial and Others Sector

cordingly, ROA declined 2.7 percentage points, to 2.5%.

Due to the absence of the weather-related benefits seen in the fiscal
ROE

year under review, gas sales volumes to the commercial and others sec-

The average balance of total equity increased, while net income dropped

tor are projected to decrease 2.3%, to 2,763 million m3.

51.8% year on year, to ¥46.0 billion. As a result, ROE declined 6.0 perIndustrial Sector

centage points, to 5.4%.

While changes in electricity schemes will result in a decline in sales volTEP

umes of 395 million m3, our ability to capture new demand will soften thisOur goal is to generate profit in excess of capital costs. This is reflected

decline and overall sales volumes of gas to the industrial sector will de-in our adoption of Tokyo Gas Economic Profit (TEP: Net operating prof-

crease only 2.4%, or 162 million m3, to 6,694 million m3. If gas used for

it after tax prior to interest payments minus the cost of capital) as one of

the electricity business is included in this calculation, the figure will actu-

our main management indicators.

ally show an increase of 3.4%, or 233 million m3.

In the fiscal year ended March 31, 2012, net operating profit after
tax prior to interest payments (NOPAT) was ¥55.3 billion, the weighted

Wholesale Sector

average cost of capital (WACC) remained unchanged, at 3.1%, and theSales volumes of gas to the wholesale sector are expected to de-cost of capital was ¥46.2 billion. Consequently, TEP was ¥9.1 billion.

crease 0.3%, to 1,965 million m3, following a decline in large-scale
wholesale sales.

ROA and ROE (Years ended March 31)

Consolidated Gas Sales Volume Forecasts%

Million m3, 45MJ/m3
1218,000912,000
6
6,000

3
0

08

09

10

11

12

ROA
ROE
ROA = Net income / total assets (average of positions at start and end of fiscal year)
ROE = Net income / total equity (average of positions at start and end of fiscal year)012Effect of changes in electric power business scheme
Commercial
Industrial
Wholesale

13
Residential

We forecast increases in sales and income in the fiscal year

TEP (Years ended March 31)

ending March 31, 2013.

¥ billion

In the fiscal year ending March 31, 2013, we expect consolidated net

70
60

sales to increase 9.1%, or ¥159.8 billion, to ¥1,914.0 billion; operating

50

income to rise 28.4%, or ¥22.0 billion, to ¥99.0 billion; and net income40

to grow 36.8%, or ¥17.0 billion, to ¥63.0 billion.

30
20

In the fiscal year ended March 31, 2012, ordinary income was ¥75.6

10

billion, but in the fiscal year ending March 31, 2013, we forecast an in-

0–10crease of 26.9%, or ¥20.4 billion, to ¥96.0 billion. Principal factors in08

09

10

11

12

TEP = NOPAT – cost of capital (Invested capital x WACC)NOPAT: Net operating profit after tax prior to interest payments

clude a ¥15.1 billion year-on-year increase in non-consolidated ordinary
income of Tokyo Gas, a ¥0.1 billion rise in ordinary income of consolidated subsidiaries, and a ¥5.2 billion increase due to consolidated ad-

Forecasts (Announced on April 27, 2012)justments.
On a non-consolidated basis, Tokyo Gas is expected to record a

Gas Sales Volumes
Following changes in electricity schemes, gas sale volumes in the fiscal¥15.1 billion year-on-year increase in ordinary income in the fiscal year

year ending March 31, 2013, are forecasted to decrease 2.0% year on

ending March 31, 2013. While revenues will be negatively impacted by

year, or 304 million m , to 14,886 million m . However, if gas used for the

reduced gas rates, the expected increase in sales stemming from highelectricity business is included in this calculation, the figure will actually

gas unit prices under the gas rate adjustment system should outweighshow an increase of 0.6%, or 95 million m3, to 15,383 million m3.

the impacts of higher material prices stemming from rising crude oil

33Management’s Discussion and Analysis

prices and the appreciation of the Japanese yen, leading to a ¥18.0 bil-Temperature Fluctuation Risk

lion increase in gross profit on gas. Contributing to this increase, theTemperatures affect the volume of city gas sales, which account forslide time lag under the gas rate adjustment system is expected to drivearound 70% of consolidated sales. In the residential sector, gas is used

up profits by ¥31.3 billion. In addition, amortization of pension actuarial

mainly for water heating and indoor heating. Mild winter weather candifferences will worsen ¥1.3 billion, but lower depreciation due to tax

erode revenues and income by reducing the volume of gas sold. In thesystem revisions will result in a ¥4.7 billion decline in fixed costs.

commercial and others sector, gas is mainly used for air conditioning

Ordinary income of consolidated subsidiaries is projected to be almost unchanged, rising only ¥0.1 billion.

systems, so if temperatures are low in the summer or high in the winter,such temperature fluctuations can erode revenues and income by reducing the volume of gas sold.

External Risks Affecting Business Activities

The average temperatures in the fiscal year ended March 31, 2012,

The following is a list of some of the risks that could impact the Com-

were 22.6°C in the first half of the year, 10.2°C in the second half, andpany’s business. However, this is only a partial list. For a more complete

16.4°C for the whole year. Forecasts for the fiscal year ending March 31,

list of risks, please refer to the Company’s Yuho securities report (Japa-

2013, are based on an average of 16.7°C for the whole year.

nese only).
Impact of 1ºC Temperature Rise on Overall Gas Sales Volume
Gas Resource Purchase Price Fluctuation Risk
The extent to which fluctuations in exchange rates and crude oil prices will affect gross profit in the fiscal year ending March 31, 2013, is
as follows.
Exchange rate:

Approximately ¥1.6 billion down (up) withRate of change

Summer (June–September)–0.2%

Winter (December–March)–2.4%

Intervening months (April, May, October, November)–1.9%

Annual

–1.6%

depreciation (appreciation) of ¥1/dollar
Crude oil price:

Approximately ¥1.1 billion down (up) with anincrease (decrease) in crude oil price of US$1/barrel

Monthly Gas Sales Volume for the Fiscal Year Ended March 31,
2012 (Non-consolidated)
Million m3, 45MJ/m3
2,000

In the fiscal year ended March 31, 2012, the average exchange rate
was ¥79.08 to one dollar, and the crude oil price averaged US$114.16
per barrel. Forecasts for the fiscal year ending March 31, 2013, are

1,500
1,000

based on an exchange rate of ¥85.00 to one dollar and an average
crude oil price of US$120.00 per barrel.

500
0

11/4

5

6

Residential

7

8

9

Commercial and others

10

11

12

Industrial

12/1

2

3

Wholesale

Ordinary Income Plan for Fiscal Year Ending March 31, 2013: Analysis of Factors (Year on Year)(Announced on April 27, 2012)

Note: (+) & (–) refer to contributions to income.

FY2011¥75.6 billion

Increase in gas gross margin (slide time lag effect +¥31.3 billion)

Decrease in fixed costs
FY2012(forecast)¥96.0 billion+¥18.0 billion

Net sales:+¥119.5 billion(Gas sales volume & composition +¥3.4 billion, slide time lag +¥129.0 billion, Gas tariff revisions, etc. –¥12.9 billion)
Gas resource costs:–¥101.5 billion(Amount & composition –¥3.1 billion, Foreign exchange –¥51.5 billion, JCC –¥51.3 billion, Others +¥4.4 billion)

Tokyo Gas
(Non-consolidated)+¥15.1 billion+¥4.7 billion

General expenses increased:–¥0.6 billion(Repair cost +¥2.4 billion, taxes increased –¥1.8 billion, Consignment costs –¥1.0 billion, etc.)
Personal expenses decreased:+¥0.2 billion
Depreciation and amortization decreased:+¥5.0 billion and others(effect of tax system revisions +¥11.8 billion, Increased depreciation from acquisition –¥6.8 billion)

Decrease in other operation/supplementary income–¥2.2 billion

Appliance sales –¥1.4 billion, Electric power –¥1.2 billion and others

Decrease in non-operating income–¥5.5 billion(–) Decreased in Premature repayment adjustments –¥2.4 billion, decrease in dividends from subsidiaries andaffiliates received –¥2.1 billion and others

Change+¥20.4 billion

Consolidated subsidiaries+¥0.1 billion
Internal offset, etc.
+¥5.2 billion(+) Nijio +¥0.9 billion (Sales increased)(–) Tanker –¥0.7 billion (Cost increased)
Elimination of dividends income +¥5.1 billion

45