Our Advantage
The Tokyo Gas Group aims to enhance its corporate value by focusing
on the development of a total energy business centering on natural gas.
This vision is the key to our future as a high-profitability, high-growthgroup capable of achieving sustainable success and progress.
Contents

I.F.C. ■ Our Advantage
Tokyo Gas will continue to provide advanced energy solutions, primarily through theShare of Natural Gas in Primary Energy Supply in Japan and Worldwide

02 ■ Outline of New Medium-term Management Plan

supply of natural gas to meet expanding demand.
As the most environmentally friendly, economical and convenient fossil fuel, natu-04 ■ Financial Highlights

ral gas has become a vital resource for modern society and lifestyles. Tokyo Gas has

06 ■ Segment Information

made natural gas the core of its diversified energy-related business.

Global Average

23.5%

When Tokyo Gas was founded in 1885, Japan was just beginning to use gas on a15 ■ Creation and Cultivation of New Natural Gas Markets

significant scale. Since then, Tokyo Gas has helped to build the Japanese city gas andnatural gas markets through its many pioneering achievements, including the intro-

08 ■ An Interview with the President

13.9%
Japan

duction of natural gas as a resource for city gas in 1969. During its 120-year history,

16

For Residential Customers

18

For Industrial and Commercial Customers

20

Wide-area Development

22

Procurement of Gas Resources24

Technology Development

it has accumulated sophisticated gas utilization technology and earned a solid reputation for reliability as a supplier of gas to a wide spectrum of residential, industrial
and commercial customers.
Today, Tokyo Gas serves over 9.8 million customers. With a brand image ofSource: BP Statistical Review of World Energy, June 2006

“security, safety and reliability,” it has extended its business to include advanced

25 ■ Fulfilling our Commitment to Corporate Social Responsibilityenergy solutions and the provision of services that help to enhance the quality of life.
With an extensive network of gas pipelines and LNG receiving terminals, Tokyo

Breakdown of GDP of Japan by Major Areas

26

Gas has steadily increased its advantage in the market. Its service area encompasses

Corporate Governance26

Our Fundamental Concept of Corporate Governance

27

Management Structure

29

Board of Directors and Corporate Auditors

30

Internal Governance31

Disclosure Policy

15.9%

32

Group Management Structure

9.7%

33

the Kanto region, which is the heart of the Japanese economy and the region with thegreatest energy needs. Tokyo Gas is continually extending its pipeline network into
areas where energy demand is expanding. The total length of pipelines in theTokyo Area

38.6%

network has reached 51,530 km.
Natural gas demand is expected to grow because of its excellent environmental
characteristics with the approach of the first Kyoto Protocol commitment period,
which starts in 2008. Tokyo Gas is working to establish and expand its presence
throughout the LNG value chain, participating in upstream projects and transportation as well as in import and supply operations in Japan. This strategy aims to ensure
the Tokyo Gas Group’s success in an energy sector that will become intenselycompetitive in the years ahead.

Osaka Area
Nagoya Area

Source: Cabinet Office, Government of JapanThe Tokyo area includes Tokyo, plus Kanagawa, Saitama, Chiba, Ibaraki, Tochigi, Gunma, Yamanashi andNagano prefectures. The Osaka area includes Osaka, as well as Hyogo, Kyoto, Shiga, Nara and Wakayama
prefectures. The Nagoya area includes Aichi, Gifu and Mie prefectures.

Initiatives for Environmental Protection and Safety

35 ■ Financial Section
63 ■ Consolidated Subsidiaries and Equity-method Affiliates
64 ■ Investor Information

01