April 27, 2022

Consolidated Financial Results Bulletin for the Fiscal Year Ended March 31, 2022
(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. UCHIDA Takashi, President
Contact:
Mr. KOMORI Rikiya, Chief Manager,
Location of head office: Tokyo
Consolidated Settlements Sect.
General shareholders’ meeting schedule:
June 29, 2022
Scheduled date of the filing of securities report:
June 29, 2022
Scheduled date of the start of dividend payments:
June 6, 2022
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 FY2021 ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(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

FY2021 ended
Mar. 31, 2022

2,145,197

21.5%

117,777

51.6%

126,732

79.8%

88,74579.3%

FY2020 ended
Mar. 31, 2021

1,765,146-8.3%

77,675-23.4%

70,500-31.3%

49,505

14.3%

Note: Total comprehensive income
FY2021 ended March 31, 2022: 98,859 million yen (188.6%)

Profit per share

Diluted profit
per share

FY2021 ended
Mar. 31, 2022

201.84 yen—

FY2020 ended
Mar. 31, 2021

112.26 yen—

Reference: Profit or loss on investment accounted for by equity method
FY2021 ended March 31, 2022: 3,725 million yen

FY2020 ended March 31, 2021: 34,259 million yen (-14.7%)
Ratio ofordinary profit tototal assets

Ratio ofoperating profit to
net sales

7.5%

4.3%

5.5%

4.3%

2.7%

4.4%

Ratio of profit toshareholders’ equity

FY2020 ended March 31, 2021: 1,482 million yen(2) Consolidated Financial Position(Unit: million yen)
Total assets
3,216,942
2,738,348

As of Mar. 31, 2022

As of Mar. 31, 2021
Reference: Shareholders’ equity
As of March 31, 2022: 1,227,198 million yen

Total net assets
1,256,566
1,178,271

Equity ratio
38.1%
42.1%

Net assets per share
2,791.95 yen
2,616.37 yen

As of March 31, 2021: 1,153,813 million yen(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

FY2021 ended
Mar. 31, 2022

145,227-224,656

90,490179,699

FY2020 ended
Mar. 31, 2021

255,574-295,911

52,009157,811

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)

FY2020 ended
Mar. 31, 2021

—

30.00

—

30.00

60.00

26,460

53.4%

2.3%

FY2021 ended
Mar. 31, 2022

—

30.00

—

35.00

65.00

28,585

32.2%

2.4%

FY2022 ending
Mar. 31, 2023 (Forecast)

—

32.50

—

32.50

65.00

—

3. Consolidated Results Forecast for FY2022 ending March 31, 2023 (April 1, 2022 - March 31, 2023)(Unit: million yen)(% of change from the corresponding period of previous year)
Net sales
Full-year

2,530,000

Operating profit
17.9%

140,000

18.9%

Ordinary profit
127,000

Profit attributable toowners of parent-0.2%

92,000

3.7%

Profit per
share
211.69*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: 113 (Increased by 8 companies and decreased by 2 companies)
Number of subsidiaries and affiliates accounted for by equity method: 16 (Increased 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: Yes
2) Change in accounting policies other than item 1) above: No
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, 2022

440,996,559

Mar. 31, 2021

442,436,059

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

Mar. 31, 2022

1,448,431

Mar. 31, 2021

1,437,924

3) Average number of shares during
period:Apr. 2021– Mar. 2022

439,672,718

Apr. 2020– Mar. 2021

441,005,584

(Reference)

1. Non-Consolidated Business Results for FY2021 ended March 31, 2022 (April 1, 2021 - March 31, 2022)(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

FY2021 ended
Mar. 31, 2022

1,921,391

19.1%

42,169-10.4%

38,234-18.2%

30,834-27.5%FY2020 ended
Mar. 31, 2021

1,612,911-9.8%

47,069-24.1%

46,764-31.6%

42,516-25.0%

Profit per share

Diluted profit
per share

FY2021 ended
Mar. 31, 2022

70.13 yen—

FY2020 ended
Mar. 31, 2021

96.41 yen—

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

Total net assets

Equity ratio

Net assets per share

As of Mar. 31, 2022

2,307,392

811,94935.2%

1,847.24 yen

As of Mar. 31, 2021

2,110,568

805,000

38.1%

1,825.41 yen

Reference: Shareholders’ equity
As of March 31, 2022: 811,949 million yen

As of March 31, 2021: 805,000 million yen

2. Non-Consolidated Results Forecast for FY2022 ending March 31, 2023 (April 1, 2022 - March 31, 2023)(Unit: million yen)(% of change from the corresponding period of previous year)
Net sales
Full-year

2,208,300

14.9%

Operating profit

Ordinary profit

70,80076,70067.9%

100.6%Net income
56,70083.9%

Profit per
share
130.47 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. Consolidated and non-consolidated results forecasts include numerous elements of uncertainty, such as the impact of the
COVID-19. Therefore, the forecasts are subject to drastic changes depending on future developments. For details of theabove forecasts, please refer to “1. Overview of Business Performance, etc. (2) Future outlook” on page 6 of 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 FY2021 .................................................................... 2(2)
Future outlook ............................................................................................................................................................. 6(3)
Basic policy on profit sharing and dividends for FY2021 and FY2022 .................................................................. 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 net assets ................................................................................................... 12(4)
Consolidated statements of cash flows ................................................................................................................... 14(5)
Notes on consolidated financial statements ............................................................................................................. 161) (Note on going concerns’ premise) ........................................................................................................................... 162) (Additional information) ........................................................................................................................................... 163) (Change in accounting policies) ................................................................................................................................ 174) (Segment information, etc.) ...................................................................................................................................... 185) (Per share information) ............................................................................................................................................. 216) (Material subsequent events) .................................................................................................................................... 22
V. Non-Consolidated Financial Statements ................................................................................................................. 23(1)
Balance sheets ............................................................................................................................................................ 23(2)Statements of income................................................................................................................................................. 25

1

I.

Overview of Business Performance, etc.

(1) Overview of business performance and financial position of FY2021(Business performance of FY2021)
During the fiscal year under review, the Japanese economy was expected to recover due to the effect of infection control
measures and improvements in overseas economies, despite continued restrictions on economic activities, with new wavesof the spread of the novel coronavirus (COVIC-19) infections occurring intermittently. However, the outlook of theeconomy remains unclear due to factors such as concerns over a resurgence in infections caused by variant strains of thevirus and the situation in Ukraine.
Amid this economic climate, competition between energy operators in the energy industry as well as competition acrossindustry borders have intensified due to the full deregulation of retail gas sales in April 2017 that followed the fullderegulation of retail electric power sales in April 2016. The environment surrounding the energy business experienced
major changes, including decarbonization becoming a global trend. Against this backdrop, we actively undertook various
measures to enhance the added value we deliver to customers in Japan and abroad through the development of acomprehensive energy business and globalization.
COVID-19 has continued to affect the Company in many ways. In the city gas business, residential demand from
customers staying at home declined from the previous fiscal year, as customers went out more and spent less time at home
due to the lifting of the state of emergency at the end of September 2021 and the gradual easing of movement restrictions.
Industrial demand has not reached the level before the spread of the pre-pandemic levels, and food and beverages arestill affected.
The electric power business saw a rise in sales volume mainly due to an increase in the number of retail sale transactions,despite the impact of a drop in demand from customers staying at home. In the overseas business, there was an
improvement in earnings due in part to a rise in selling prices in the LNG business, etc. in Australia and North America
on the back of a global rise of market prices. In the energy-related business, delays in delivery brought about by a global
shortage of semiconductors and a shortage of component supply due to the spread of infections in Southeast Asia caused
a decline in sales volume of gas equipment products, etc. In the real estate business, rent income increased as large-scale
properties operated throughout the year.
In light of these economic conditions and changes in the business climate, consolidated net sales for the year under review
totaled ¥2,145.1 billion, a rise of 21.5% year on year and operating expenses came to ¥2,027.4 billion, an increase of
20.1% year on year.
Extrapolating from this performance, operating profit was ¥117.7 billion, an increase of 51.6% year on year, and ordinary
profit totaled ¥126.7 billion, a rise of 79.8%. Profit attributable to owners of the parent came to ¥88.7 billion, a growth of
79.3% year on year. This reflected the posting of a ¥4.1 billion gain on sales of investment securities and a ¥2.2 billion
gain on sales of non-current assets as extraordinary income, a ¥3.7 billion impairment loss on the real estate business, etc.
and a ¥2.4 billion loss on valuation of investment securities as extraordinary losses, and income taxes.
<Segment summary>1) Gas
The sales volume of the city gas business, which is the main business of the gas segment, was 13,131 million m 3 in thefiscal year under review, an increase of 1.1% year on year. Breaking this down, residential demand was 3,077 million m3,
a decrease of 4.0%, primarily due to a drop in demand as customers spent less time at home.
Commercial demand was 2,248 million m3, a decline of 0.6%, mainly due to a drop in the number of customers.
Industrial demand was 6,197 million m3, an increase of 7.1%, primarily due to an increase in sales volume to users
dedicated to power generation.
Supply to other utilities was 1,609 million m3, a drop of 7.2%, owing mainly to a drop in customer demand.
Gas sales came to ¥1,440.0 billion, an increase of ¥297.3 billion or 25.9% year on year, owing mainly to an increase a risein gas unit price reflecting resource cost adjustments.
As a result of a rise in gas sales volume and an increase in city gas resource costs due to a rising trend in crude oil prices
compared to the previous fiscal year, the overall operating expenses increased ¥283.0 billion or 26.7%.
Consequently, segment profit totaled ¥102.6 billion, an increase of ¥14.2 billion or 16.0% year on year.

2

<Consolidated City Gas Sales Volume for FY2021 Ended March 31, 2022>

City gas sales volume

FY2021
FY2020Change% change
No. of customers for cityThousands
8,688
8,863
-175
-2.0
gas retail sales
Thousands
No. of customers (meters)
12,202
12,083119
1.0
Residential
3,077
3,207
-130
-4.0
Mil. m3
Commercial
2,248
2,261
-13
-0.6
Mil. m3
Industrial
6,197
5,787
410
7.1
Mil. m3
3
Subtotal
8,445
8,049
396
4.9
Mil. mSupplies to other utilities
1,609
1,735
-126
-7.2
Mil. m3
Total
13,131
12,990141
1.1
Mil. m3
Average temperature
°C
16.3
16.5
-0.2
—
Notes:
1. No. of customers for city gas retail sales indicates the number of billed customers for city gas retail sales.
2. No. of customers (meters) indicates the number of meters that includes inactive meters and meters for gas supply fromother retail companies.
3. “Commercial” indicates sales to commercial, public and medical institutions.
4. City gas sales volumes are on the basis of 45MJ/m3.
5. Average temperature is the average temperature during the period of use by each customer (from date of initial month’s
meter reading to final month’s meter reading).
The aforementioned notes also apply to the relevant tables.
<Foreign Exchange Rate and Crude Oil Price>¥/$ rate

FY2021112.39FY2020106.10Change6.29

Crude oilprice($/bbl)FY202177.15

FY202043.36

Change33.792) Electric power
Sales totaled ¥467.8 billion, an increase of ¥71.9 billion or 18.2% year on year. Operating expenses rose ¥69.4 billion or
17.9%.
Reflecting this, segment profit totaled ¥11.1 billion, an increase of ¥2.5 billion or 27.8% year on year.
<Consolidated Electric Power Sales Volume for FY2021 Ended March 31, 2022>
FY2021
FY2020Change% change
No. of customers for cityThousands
3,014
2,717
297
10.9
gas retail sales
Electric Retailmillion kWh
11,305
10,482
823
7.9
power
Wholesale etc. million kWh
16,983
14,279
2,704
18.9
sales
million kWh
28,28824,761
3,527
14.2
volume Total
Note: No. of customers for electric power retail sales indicates the number of billed customers for electric power retailsales3) Overseas
Sales totaled ¥85.9 billion, an increase of ¥40.0 billion or 87.1% year on year. Operating expenses rose ¥17.9 billion or
42.1%.
Segment profit was ¥28.2 billion, a rise of ¥24.4 billion or 625.2% year on year, as a result of an increase in equity-method
investment gains.
4) Energy-related
Sales totaled ¥331.3 billion, a decrease of ¥8.1 billion or 2.4% year on year. Operating expenses declined ¥4.0 billion or
1.2%.
Reflecting this, segment profit was ¥12.8 billion, a drop of ¥4.2 billion or 24.8% year on year.

5) Real estate3

Sales totaled ¥57.9 billion, an increase of ¥9.5 billion or 19.7% year on year. Operating expenses rose ¥3.6 billion or 8.5%.
Segment profit was ¥13.4 billion, a rise of ¥5.9 billion or 78.5% year on year, although equity-method investment gains
were roughly unchanged from the previous fiscal year.
A ¥3.1 billion impairment loss on the real estate business was posted as extraordinary losses.
6) Others
Sales totaled ¥107.5 billion, a decrease of ¥2.9 billion or 2.6% year on year. Operating expenses decreased ¥1.1 billion or
1.0%.
Segment profit was ¥2.0 billion, a decline of ¥1.8 billion or 46.8% year on year, although equity-method investment gains
were roughly unchanged from the previous fiscal year.
<Summary by segment>(Unit: hundred million yen )
Gas

Sales

Operatingexpenses

Segment
profitFY2021(% of total)
FY2020(% of total)
Amount of change(Rate of change)
FY2021(% of total)
FY2020(% of total)
Amount of change(Rate of change)
FY2021(% of total)
FY2020(% of total)
Amount of change(Rate of change)

14,400(57.9%)
11,467(54.9%)
2,973
25.9%
13,413(57.6%)
10,583(54.0%)
2,830
26.7%
1,026
(60.3%)
884(68.4%)
142
16.0%

Electric
power
4,678
(18.8%)
3,959(19.0%)
719
18.2%
4,566
(19.6%)
3,872(19.8%)
694
17.9%
111
(6.5%)
86(6.7%)
25
27.8%

Overseas859(3.4%)
459(2.2%)
400
87.1%
604
(2.6%)
425(2.2%)
179
42.1%
282
(16.6%)
38(3.0%)
244
625.2%

Energyrelated
3,313(13.3%)
3,394(16.3%)
-81
-2.4%
3,184
(13.7%)
3,224(16.5%)
-40
-1.2%
128
(7.5%)
170(13.2%)-42-24.8%

Real estate579(2.3%)
484(2.3%)
95
19.7%
454(2.0%)
418(2.1%)
368.5%
134(7.9%)
75(5.8%)
59
78.5%

Others
1,075(4.3%)
1,104(5.3%)
-29
-2.6%
1,055
(4.5%)
1,066(5.4%)-11-1.0%
20(1.2%)
38(2.9%)-18-46.8%

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 are adjusted against the amount based on operating
profit in the consolidated financial statements plus or minus equity-method investment gains.

4

(Financial position in FY2021)
1) Situation of assets, debt and net assets
Assets as of March 31, 2022, totaled ¥3,216.9 billion, an increase of ¥478.6 billion versus March 31, 2021, primarily
attributable to an increase in notes and accounts receivable - trade, and contract assets based partly on a rise in city gas
unit price reflecting resource cost adjustments due to the impact of the rise in crude oil prices, as well as an increase inother current assets.
Liabilities stood at ¥1,960.3 billion, an increase of ¥400.3 billion. This was primarily attributable to an increase in theinterest-bearing debt (¥154.6 billion) due to an increase in corporate bonds and the outstanding balance for long-term loans
payable.
Net assets totaled ¥1,256.5 billion, a rise of ¥78.3 billion. Although net assets were negatively impacted by factors
including the distribution of capital surplus (-¥26.4 billion), there was an overall increase attributable to a rise inshareholders’ equity mainly thanks to the posting of profit attributable to the owners of the parent (¥88.7 billion) and anincrease in non-controlling interests (¥4.9 billion) partly as Niihama LNG Co., Ltd. became a consolidated subsidiary.
In contrast with the growth rate of shareholders’ equity, the growth rate of net worth (equity capital) (total shareholders’equity + accumulated other comprehensive income) was smaller. As a result, the shareholders’ equity ratio was 38.1% on
March 31, 2022, down 4.0 points from March 31, 2021.
<Capital expenditure>
FY2021

Tokyo Gas

Production facilities
Supply facilities
Operational facilities, etc.
Total
Consolidated subsidiaries
Adjustments
Total

111
959
383
1,454
1,043
-33
2,464

(Unit: hundred million yen)
Change% change
-40
-35.9
-150
-15.7
-169
-44.2
-360
-24.7
8
0.8
-41
—
-392
-15.9

FY2021
1,452-2,246
904
91
201
1,578
1,796

(Unit: hundred million yen)
FY2020Change2,555-1,103-2,959
713
520
384
-50
141
65
136
1,512
66
1,578
218

FY2020

71
809
214
1,094
1,051
-74
2,072

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 ¥145.2 billion. This was primarily attributable
to the posting of income before income taxes (¥126.8 billion) and depreciation and amortization (¥196.8 billion), despite
an increase in trade receivables (-¥113.3 billion), income taxes paid (-¥16.1 billion) and interest paid (-¥14.4 billion).
b) Cash flow from investing activities
Cash and cash equivalents used in investing activities totaled ¥224.6 billion. This was primarily due to the purchase ofproperty, plant and equipment (-¥167.1 billion) and the purchase of intangible assets (-¥29.7 billion) associated withcapital expenditures, and the purchase of investment securities (-¥16.2 billion).
c) Cash flow from financing activities
Cash and cash equivalents obtained as a result of financing activities totaled ¥90.4 billion. Although there were
expenditures due to repayment of long-term loans payable (-¥123.2 billion), dividends payable (-¥26.4 billion), and bondredemption (-¥20.0 billion), cash and cash equivalents increased owing to long-term loans payable (¥165.0 billion) andproceeds from the issuance of bonds (¥73.6 billion).

5(2) Future outlook
For FY2022, we forecast city gas sales volume of 12,398 million m3, a decline of 5.6% year on year. Although we estimate
a recovery from the drop in commercial demand in the restaurant and hotel sectors, among others, we project a decline inindustrial and residential demand owing to a drop in demand from power generation customers, etc., and a decrease in thenumber of customers, respectively. We expect electricity sales volume to be 34,801 million kWh, an increase of 23.0%
year on year, due in part to a rise in wholesale sales volume. Net sales are expected to grow by 17.9% year on year, mainly
due to a rise in gas unit price reflecting resource cost adjustments and the increase in electricity sales volume. Meanwhile,
we estimate a rise in operating expenses, mainly reflecting higher resource costs, owing mainly to the impact from a risein crude oil prices. Despite this, we expect operating profit to increase by 18.9% year on year, mainly due to a reductionin the sliding time lag effect.
Taking these factors into account, we project consolidated net sales of ¥2,530.0 billion, a growth of ¥384.9 billion or
17.9% year on year, operating profit of ¥140.0 billion, an increase of ¥22.3 billion or 18.9%, ordinary profit of ¥127.0
billion, an increase of ¥0.3 billion or 0.2%, and profit attributable to owners of the parent of ¥92.0 billion, an expansionof ¥3.3 billion or 3.7%.
The economic frame assumed for FY2022 is ¥120.00/$ for foreign exchange rate for the full-year, and $85.00/bbl for the
full-year for crude oil price.
a. Consolidated city gas sales volume forecast for FY2022
FY2022(Forecast)Mil. m3
3,061
City gas Residential
sales
OthersMil. m3
9,336
volume Total
Mil. m3
12,398Average temperature°C
16.20
b. Consolidated electric power sales volume forecast for FY2022
FY2022(Forecast)
Total electric power
million kWh
34,801sales volume

FY2021(Results)
3,077
10,054
13,13116.30

FY2021(Results)

Change% change

-16
-718
-733
-0.10

Change28,288

-0.5
-7.1
-5.6
—

% change

6,513

23.0

c. Consolidated earnings forecast for FY2022(Unit: hundred million yen)
Net sales
FY2022 (forecast)
FY2021 (results)
Change% change

25,30021,451
3,849
17.9%

Operating profit

Ordinary profit

Profit attributable toowners of parent

1,400
1,177
223
18.9%

1,270
1,267
3
0.2%

920
887
33
3.7%

< Foreign exchange rate and crude oil price forecast for FY2022>
FY2022
FY2021
Crude oil
Change(Forecast)(Results)¥/$ rate
price($/bbl)120.00112.397.61

6FY2022(Forecast)
85.00

FY2021(Results)
77.15

Change7.85

(3) Basic policy on profit sharing and dividends for FY2021 and FY2022
The Company allocates its management results to the improvement of customer service and realization of asustainable society, as well as sharing them with shareholders in an appropriate and timely manner. Our basic
dividend policy is to maintain stable dividends while at the same time offering gradual dividend increases inaccordance with profit growth by comprehensively taking into consideration medium- to long-term profit levels.
As a result of the amendment to the Articles of Incorporation on June 29, 2021, it became possible for theCompany to determine dividends based on the resolution of its Board of Directors.
At the meeting of the Board of Directors held on April 27, 2022, the Company resolved to pay dividends earlier
than before and to increase the dividend per share by 5 yen to 35 yen in order to promptly return the results ofmanagement to shareholders. As a result, the annual dividend for the fiscal year under review, including theinterim dividend (30 yen per share), was 65 yen per share.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: 8 companies
Tokyo Gas Network Co., Ltd., TG Nordic ApS (new establishment), Tokyo Energy Service Co., Ltd., Mobara Power Co.,
Ltd., Shiinomori Power Co., Ltd. (share acquisition), Niihama LNG Co., Ltd., TG Octopus Energy Co., Ltd.,
Yamaguchiyuu solar power LLC (increase in significance)- Excluded: 2 companies
Tokyo Gas Yokosuka Power Co., Ltd. (share transfer), TG TTK Power, LLC (liquidation)2) Application of equity method- Included in the equity method: 1 company
TOWII Renewables A/S (share acquisition)
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, 2021]

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

Consolidated Financial Statements

Consolidated Balance Sheets(Million yen)
As of March 31,2021

As of March 31,2022

AssetsNon-current assets
Property, plant and equipment
Production facilities

231,177

218,956

Distribution facilities
Service and maintenance facilities

594,662
15,992

578,394
15,417

Other facilities
Inactive facilities

564,495
316

630,786316

Construction in progress

89,283

125,501

1,495,927

1,569,373

5,320

6,018

Other intangible assets

290,316

294,296

Total intangible assets

295,637

300,315

Investment securities
Long-term loans receivable

230,782
57,279236,303
48,653Retirement benefit asset
Deferred tax assets

114
47,3685,864
44,230

Other investments
Allowance for doubtful accounts

60,814(301)

100,916(1,647)

Total investments and other assets

396,057

434,3222,187,623

2,304,011

157,881
218,985

179,769--

330,540

19,61817,824

Securities
Merchandise and finished goods

1,210
1,980

10
3,467

Work in process
Raw materials and supplies

11,59546,46412,083
67,135

Other current assets
Allowance for doubtful accounts

93,848(857)

305,814(3,714)

Total current assets

550,725

912,9312,738,348

3,216,942

Total property, plant and equipment
Intangible assets
Goodwill

Investments and other assets

Total non-current assets
Current assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade, and contract
assetsLease receivables and investments in leases

Total assets

8

(Million yen)
As of March 31,2021

As of March 31,2022

Liabilities
Non-current liabilities
Bonds payable
Long-term borrowings

474,998
458,881548,619568,725

Deferred tax liabilities
Retirement benefit liability
Provision for share awards for directors (and otherofficers)
Provision for gas holder repairs

24,26958,416

29,641
66,195

-

84

3,172

3,427

Provision for safety measures
Provision for appliance warranties
Provision for contract loss in regards to appliancewarranties
Provision for point card certificates349
10,843

637
-

-

2,620

1,635

531

Asset retirement obligations
Other noncurrent liabilities

23,31389,18827,692
113,004

Total non-current liabilities

1,145,067

1,361,180

Current liabilities
Current portion of non-current liabilities

108,704

49,248Notes and accounts payable - trade
Short-term borrowings

84,265
5,706

76,2296,385

Income taxes payable
Other current liabilities

11,710204,623

33,830433,501

Total current liabilities

415,010599,195

1,560,077

1,960,375

Shareholders' equity
Share capital

141,844

141,844

Capital surplus
Retained earnings

1,145
990,762846
1,051,600

Treasury shares(3,907)(3,524)

1,129,845

1,190,767

Total liabilities
Net assets

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

22,99018,866(11,240)(11,904)

Foreign currency translation adjustment
Remeasurements of defined benefit plans

4,322
7,895

32,545(3,076)

Total accumulated other comprehensive income

23,96836,43024,45729,3681,178,271

1,256,566

2,738,348

3,216,942

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

9Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)
For the fiscal year
ended March 31,2021

For the fiscal year
ended March 31,2022

Net sales
Cost of sales

1,765,146
1,212,624

2,145,197
1,546,590

Gross profit

552,522598,607

Selling, general and administrative expenses
Supply and sales expenses

410,167

415,506

General and administrative expenses

64,67965,323

Total selling, general and administrative expenses

474,846

480,829

Operating profit

77,675

117,777

Non-operating income
Interest income

1,586

1,032

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

2,398

1,692

1,482

3,725

1,619
7,979

14,55013,725Gain on sales of raw materials
Miscellaneous income

6,137

6,817
7,855

Total non-operating income

21,20449,39912,62914,466

Loss on derivatives
Fair value adjustment of contingent consideration

9,373
-

11,864
4,199

Miscellaneous expenses

6,376

9,913

Total non-operating expenses

Non-operating expenses
Interest expenses

28,37940,444

Ordinary profit

70,500126,732

Extraordinary income
Gain on sale of non-current assets

3,114

2,226

Gain on sale of investment securities
Gain on bargain purchase

5,283
2,008

4,118
-

Total extraordinary income

10,406

6,344

Impairment losses
Loss on valuation of investment securities

10,255
4,466

3,742
2,468

Total extraordinary losses

14,722

6,211

Profit before income taxes

66,184

126,865

Income taxes - current

16,88732,865Extraordinary losses

Income taxes - deferred(1,175)

3,724

Total income taxes

15,71236,589Profit50,471

90,276966

1,530

49,50588,745

Profit attributable to non-controlling interests
Profit attributable to owners of parent

10

Consolidated Statements of Comprehensive Income(Million yen)
For the fiscal year
ended March 31,2021
ProfitOther comprehensive income

For the fiscal year
ended March 31,2022

50,471

90,276

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

7,178(10,014)(4,178)(6,841)

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(14,869)
7,751

25,006(10,964)(6,259)5,560(16,212)

8,583

Comprehensive income

34,25998,859Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

33,480101,241778(2,381)

11

Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31,2021(Million 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

Capitalsurplus2,067

Retainedearnings

Total
shareholders'equityTreasuryshares967,718(3,875)

1,107,754-

141,8442,067

967,718(3,875)

1,107,754(26,460)(26,460)

49,50549,505
(32)

(32)

1

1
-

(921)

(921)

-

(921)

23,044(31)

22,091

141,8441,145

990,762(3,907)1,129,845

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

15,843

1,444

22,412292

39,992

Noncontrollinginterests

11,391

Total net
assets1,159,138-

15,843

1,444

22,412292

39,992

11,391

1,159,138(26,460)
49,505
(32)
1
-

12

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
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
periodNoncontrollinginterests

Total net
assets

-

(921)

7,146

(12,684)(18,089)

7,602(16,024)

13,065(2,958)

7,146(12,684)(18,089)

7,602(16,024)

13,065

19,132

22,990(11,240)

4,322

7,895

23,96824,457

1,178,271

13

For the fiscal year ended March 31,2022(Million 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

Treasuryshares990,762(3,907)

5,255
141,844

1,145

Total
shareholders'equity1,129,845
5,255

996,018(3,907)

1,135,101(26,423)(26,423)

88,74588,745(3,788)(3,788)

(100)

566

465

(3,604)

3,604-(3,033)(3,033)

(298)

(298)

-

(298)

55,582382

55,666

141,844846

1,051,600(3,524)

1,190,767

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 thenumber of
consolidated

22,990(11,240)

4,322

7,895

23,968

Noncontrollinginterests

24,457

Total net
assets1,178,271
5,255

22,990(11,240)

4,322

7,895

23,96824,4571,183,526(26,423)
88,745(3,788)465(3,033)14

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

Noncontrollinginterests

Total net
assetssubsidiaries
Change inownership interestof parent due totransactions with
non-controllinginterests
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period(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

73,04018,866(11,904)

32,545(3,076)36,43029,3681,256,566

15

Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended March 31,2021
Cash flows from operating activities
Profit before income taxes

For the fiscal year
ended March 31,2022

66,184

126,865

176,087
10,255

196,810
3,742

Amortization of long-term prepaid expenses
Loss on retirement of property, plant and equipment

3,722
3,274

4,136
2,574

Loss (gain) on sale of non-current assets
Loss (gain) of derivatives(3,102)
1,393(2,214)(15,362)

Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on charge in the fair value of contingent
consideration
Increase (decrease) in allowance for doubtful accounts(5,283)
4,466(3,983)
2,468

-

4,199

186

4,202

Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Increase (decrease) in provision for contract loss inregards to appliance warranties
Interest and dividend income(2,918)(84)(1,896)(11,312)-2,620(3,984)(2,724)

Interest expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using
equity method
Decrease (increase) in trade receivables
Decrease (increase) in inventories

12,629(4)

14,466(7,757)(1,482)(3,725)

5,126
18,643(113,362)(22,491)

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

8,080
-

10,132
2,305

Increase (decrease) in contract liabilities
Decrease (increase) in prepaid expenses

41(12,587)(2,796)

Increase (decrease) in long term advances received
Net decrease (increase) in lease receivables andinvestments in leases
Other, net

-

8,835

740

1,804

(1,127)(18,185)

Subtotal

292,844

166,766

7,843

9,068

Interest paid
Income taxes paid

(12,630)(32,482)(14,483)(16,123)

Net cash provided by (used in) operating activities

255,574

145,227(37,467)

1,200(16,214)

16,573

8,841(172,652)(35,725)(167,197)(29,777)

Purchase of long-term prepaid expenses
Proceeds from sale of non-current assets(2,456)
5,151(6,584)
6,334

Long-term loan advances
Proceeds from collection of long-term loans
receivable
Payments of guarantee deposits
Proceeds from refund of guarantee deposits(11,831)(3,180)

4,037

2,158

(6,957)
4,916(13,189)
9,846

Purchase of shares of subsidiaries resulting in change(32,579)(15,074)

Depreciation
Impairment losses

Interest and dividends received

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

16

(Million yen)
For the fiscal year
ended March 31,2021

For the fiscal year
ended March 31,2022

in scope of consolidation
Payments for acquisition of businesses
Other, net(25,208)(1,712)(1,418)(399)

Net cash provided by (used in) investing activities(295,911)(224,656)

17

(Million yen)
For the fiscal year
ended March 31,2021
Cash flows from financing activities
Net increase (decrease) in commercial papers

For the fiscal year
ended March 31,2022-

30,000

Repayments of lease liabilities
Proceeds from long-term borrowings(2,414)51,035(2,683)
165,014

Repayments of long-term borrowings
Proceeds from issuance of bonds(35,981)
90,000(123,252)
73,620

Redemption of bonds
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Proceeds from share issuance to non-controllingshareholders
Purchase of treasury shares(20,000)(20,000)(2,275)(3,620)

-

2,654

(32)

(3,326)

Dividends paid
Other, net(26,449)(1,872)(26,424)(1,490)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

52,00990,490(5,088)

9,117

6,584

20,179Cash 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

151,218

157,8118

1,708

157,811

179,69918

(5)Notes on consolidated financial statements1) (Note on going concerns’ premise)
Not applicable2) (Additional information)[Accounting estimates on the impact of COVID-19]
It is difficult to determine the impact of the COVID-19 pandemic on the Group since we cannot currently foresee
when the pandemic will abate.
Accounting treatments require estimations to be made based on certain assumptions. The Group has madeaccounting estimates by assuming that the impact of the COVID-19 pandemic will continue to a certain extent inand after FY2022, in view of the impact of each business on the operating results for the fiscal year under review.
[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 sharebased 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
Company shares remaining in trust have been recorded as treasury stock at their carrying amount in the trust(excluding the amount of incidental expenses) under net assets. The carrying amount and number of shares ofsaid treasury stock at the end of the fiscal year under review were ¥460 million and 223,800 shares, respectively.
3) (Change in accounting policies)
Application of Accounting Standard for Revenue Recognition, etc.
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ No. 29, March 31, 2020)and others effective the start of the fiscal year under review and has decided to recognize the amount expected tobe received in exchange for goods or services as revenue when the control of the promised goods or services has
been transferred to the customer.
Therefore, revenues associated with the electric power business, which had been recognized on the basis of thedate of meter reading, are now recognized on the basis of delivery by reasonably estimating the performanceobligation that is fulfilled at the end of the term. For the provision of certain gas equipment maintenance services,
the maintenance cost expected to be incurred in the future had been booked as provision for appliance warranties,
and the amount provided had been booked as expenses. However, said services are now identified as a performanceobligation, and the amount expected as consideration for future provision of the services is now treated as acontractual liability. The advanced billing use to promote renewable energy power generation is no longer includedin the transaction price upon revenue recognition as it is collected for a third party. It is now accounted for as aliability item instead of the previous operating revenue item. The corresponding payments in accordance with the
Act on Special Measures concerning the Procurement of Renewable Electric Energy are now also accounted for as
said liability item instead of an operating expense. With regard to points that are granted according to the purchaseamount of gas and electricity, the amount expected to be used in the future had been booked as provision for point
card certificates and the amount provided had been booked as expenses. The points granted are now identified asa performance obligation, and the amount expected to be received in exchange for future services are now booked
as a contractual liability.
The Accounting Standard for Revenue Recognition, etc. are applied in accordance with the transitional
procedures set forth in the proviso of paragraph 84 of the Accounting Standard for Revenue Recognition. Under
this application method, the cumulative effect of retroactively applying the new accounting policies to before thestart of the fiscal year under review is added to or deducted from the retained earnings at the start of the fiscal year
19

under review, and the new accounting policies are applied from said starting balance.
However, by applying the method set forth in paragraph 86 of the Accounting Standard for Revenue Recognition,
the new accounting policies have not been applied retroactively to contracts for which almost all revenues had beenrecognized in accordance with the previous treatment before the start of the fiscal year under review. In addition,
by applying the method set forth in proviso (1) of paragraph 86 of the Accounting Standard for Revenue
Recognition, changes to contracts carried out before the start of the fiscal year under review have been accounted
for based on the contract terms after all contract changes have been reflected, and their cumulative effects havebeen added to or deducted from retained earnings at the start of the fiscal year under review.
As a result, retained earnings at the start of the fiscal year under review increased by ¥5,255 million, net sales
for the fiscal year under review decreased by ¥47,090 million, and operating profit, ordinary profit, and profit
before income taxes increased by ¥4,361 million each.
Due to the application of the Accounting Standard for Revenue Recognition, etc., “notes and accounts receivable- trade,” which were presented under “current assets” in the consolidated balance sheet for the previous fiscal year,
have been included in “notes and accounts receivable - trade, and contractual assets,” starting the fiscal year underreview. The “provision for appliance warranties,” which was presented under “non-current liabilities” in the
consolidated balance sheet for the previous fiscal year, has been included as “contractual liabilities” under “othercurrent liabilities,” starting the fiscal year under review. Of the “provision for point card certificates” that waspresented under “non-current liabilities” in the consolidated balance sheet for the previous fiscal year, the amountcorresponding to contractual liabilities under the Accounting Standard for Revenue Recognition, etc. has been
included as “contractual liabilities” under “other current liabilities,” starting the fiscal year under review. In
accordance with the transitional procedures set forth in paragraph 89-2 of the Accounting Standard for Revenue
Recognition, reclassification based on the new presentation method has not been carried out for the previous fiscal
year.
Application of Accounting Standard for Fair Value Measurement, etc.
The Company has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July4, 2019) and others effective the start of the fiscal year under review, and has decided to apply the new accounting
policy set forth by the Accounting Standard for Fair Value Measurement, etc. into the future in accordance with thetransitional procedures stipulated in paragraph 19 of the Accounting Standard for Fair Value Measurement andparagraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019). This
will have no impact on consolidated financial statements.
4) (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.
The Tokyo Gas Group is deploying business activities in the following areas—in addition to the core of the Group’s
operating structure, which consists of city gas, liquid gas, and gas (including LNG sales), which are all energy
produced using natural gas as a resource, the Group also delves in the electric power business, which is a new pillarof the Group’s revenues, the overseas business to remake ourselves as a global company group, and the engineeringsolutions business, which utilizes energy.
Furthermore, businesses involving the efficient utilization of the Group’s real estate holdings represent anotherearnings base, and the Group therefore employs the five reporting segments of “gas,” “electric power,” “overseas,”“energy related,” including the engineering solutions, which utilize energy and “real estate.”
The main products and services of each reporting segment are as follows:
Gas:
City gas, liquid gas business (LNG, industrial gas), LNG sales, etc.
Electric power: Electric power
Overseas:
Overseas resource development and investment, energy supply, etc.
Energy related: Engineering solutions business (engineering, energy service, etc.), gas appliances, gas
installation work, construction, etc.
Real estate:
Leasing, management, etc. of land and buildings

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.
20

Intersegment sales and transfers are attributable to transactions within group companies, and calculated based onmarket value.
As described in “Change in accounting policies,” the Company has adopted the Accounting Standard for Revenue
Recognition and others from the consolidated financial statements for the fiscal year under review and changed theaccounting method for revenue recognition. Therefore, the calculation method of profit or loss of business segments
has also been changed accordingly. This change has resulted in the following changes compared to the previous
calculation method: sales and segment profit of “gas” for the fiscal year under review decreased by ¥4,568 million
and increased by ¥69 million, respectively; sales and segment profit of “electric power” decreased by ¥38,845
million and increased by ¥4,371 million, respectively; sales and segment profit of “energy” decreased by ¥38,485
million and ¥11 million, respectively; sales of “real estate” decreased by ¥224 million while there were no changes
in segment profit; and sales and segment profit of “others” decreased by ¥1,743 million and ¥67 million, respectively.
3. Change in reporting segments
In November 2021, the Company formulated the Compass Action, a detailed roadmap for achieving Compass 2030,
the Group’s management vision, and on April 1, 2022, transitioned to a holding company structure.
Following this development, the Company has decided to change its reporting segments from the five segments of“gas,” “electric power,” “overseas,” “energy related,” and “real estate,” which it has used until FY2021, to four
reporting segments of “energy solution,” “network,” “overseas,” and “urban business,” starting in FY2022.
The details of segment information disclosure are under consideration.

21

3. Information related to net sales, profit and loss, and assets, etc. by reporting segment
Fiscal year ended March 31, 2021 (from Apr. 1, 2020 to Mar. 31, 2021)(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

— 1,765,146

1,003,550

394,870

42,376

293,417

21,892 1,756,106

143,241

1,050

3,557

46,03826,5301,146,791

395,92045,934339,455

48,422 1,976,525

88,461

8,696

3,399

17,045

6,565

124,167

3,801

127,968(50,293)

77,675

—

—

496

—

980

1,476

5

1,482

—

1,482

88,461

8,696

3,895

17,045

7,545

125,643

3,807

129,450(50,293)

79,157

1,262,848

249,088361,228

252,545296,867 2,422,577

39,947 2,462,525

275,823 2,738,348

127,266

10,335

14,566

11,79011,737

175,696

4,406

180,102(4,014)

176,087

147,217

15,141

48,76915,746

16,723

243,598

1,553

245,152(3,978)241,173

220,4199,040 1,765,146

Amountrecorded on
Adjustments consolidated(Note 2) statement ofincome(Note 3)

101,384

321,803

110,424 2,086,950—(321,803)(321,803) 1,765,146

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 ¥(50,293) million segment profit or loss adjustment includes ¥(1,473) million in eliminations forintersegment transactions and ¥(48,820) 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 ¥275,823 million segment assets adjustment includes ¥351,585 million of companywide assets notallocated to the respective reporting segments, and ¥(75,762) 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, 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 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)

1,278,955

465,066

80,257278,21132,194 2,134,684

10,513 2,145,197－

2,145,197

165,048

2,738

5,674

53,101

25,767

252,329

97,029349,359 (349,359)－

1,444,003

467,804

85,931

331,31257,961

2,387,013

107,542 2,494,556

102,646

11,11725,487

12,81812,532

164,601

1,998

166,600(48,823)

117,777

—

—

2,765

—

934

3,699

25

3,725

－

3,725

102,646

11,11728,252

12,81813,466

168,301

2,024

170,326(48,823)

121,502

1,572,453

335,426

433,397

256,637

288,196 2,886,111

39,610 2,925,721

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(7,449)199,334(349,359) 2,145,197

291,220 3,216,942

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 ¥(48,823) million segment profit or loss adjustment includes ¥(1,413) million in eliminations forintersegment transactions and ¥(47,409) 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 ¥291,220 million segment assets adjustment includes ¥372,058 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.

235) (Per share information)(Unit: yen)

Shareholders’ equity per share
Profit per share
Notes:
1. Diluted profit per share is not disclosed as no latent shares exist.
2. Basis for calculation of profit per share is as follows.

Profit attributable to owners of parent (million yen)
Not attributable to common shareholders (million yen)
Profit attributable to owners of parent with regard to the commonshares (million yen)
Average number of common shares outstanding (thousand shares )3. 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)

24

FY2020(Apr. 2020–
Mar. 2021)
2,616.37
112.26FY2021(Apr. 2021 –Mar. 2022)
2,791.95
201.84FY2020(Apr. 2020–
Mar. 2021)
49,505—

FY2021(Apr. 2021 –Mar. 2022)
88,745－88,74549,505441,006

439,673

FY2020
FY2021(as of Mar. 31, 2021) (as of Mar. 31, 2022)
1,178,271
1,256,566
24,45729,36824,45729,368
1,153,813
1,227,198
440,998
439,548

6) (Material subsequent events)[Acquisition of treasury shares]
At its Board of Directors meeting held on April 27, 2022, 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: 8.5million (upper limit)(Rate to number of shares outstanding 1.9％)· Total value of shares to be acquired: ¥16 billion (upper limit)
· Term of acquisition: May 9, 2022– September 30, 2022
[Transfer of Subsidiary Shares]
On April 25, 2022, the Company agreed to transfer all shares of Tokyo Gas Energy Co., Ltd. and Tokyo Gas LPG
Terminal Co., Ltd. held by Tokyo Gas Liquid Holdings Co., Ltd., a wholly-owned subsidiary of the Company, toIwatani Corporation, and concluded a share sales agreement with Iwatani Corporation. The share transfer is scheduled
to be completed by June 2022.
(1) Reasons for Share Transfer
Tokyo Gas Energy Co., Ltd. operates a liquefied petroleum gas (LPG) wholesale and retail businesses mainly in
the Tokyo metropolitan area. Tokyo Gas LPG Terminal Co., Ltd. is engaged in the LPG storage and shipping
business in Negishi.
After considering the composition of our optimal business portfolio and the environment surrounding this business,
it was determined appropriate to transfer all shares of the following consolidated subsidiaries to Iwatani
Corporation.
(2) Acquirer of Shares
Iwatani Corporation(3) Schedule of Share Transfer
June 2022 (tentative)(4) Names of Transferees and Line of Business
NameLine of businessTokyo Gas Energy Co., Ltd.
Wholesale of LP Gas, Direct sales of LP gas, etc.
Tokyo Gas LPG Terminal Co., Ltd.
Storage and shipping of LPG(5) Number of Shares to be Transferred, Transfer Price and Number of Shares Held After Share Transfer
Tokyo Gas Energy Co., Ltd.
Tokyo Gas LPG Terminal Co., Ltd.
Number of shares to be transferred
678,000 (ownership rate: 66.6%)
980 (ownership rate: 49.0%)
The remaining stake of 51.0% is heldby Tokyo Gas Energy Co., Ltd.
Transfer priceDue to our contractual confidentiality obligations, we will refrain fromdisclosing this information.
Number of shares held after share 0 (ownership rate: 0%)0 (ownership rate: 0%)transfer25

Non-consolidated Financial Statements

Non-consolidated Balance Sheets(Million yen)
As of March 31,2021

As of March 31,2022

AssetsNon-current assets
Property, plant and equipment
Production facilities

235,770

222,612Distribution facilities
Service and maintenance facilities

587,935
12,734571,495
12,300

Facilities for incidental businesses
Inactive facilities

5,093
316

7,292
316

Construction in progress

23,954

18,465

Total property, plant and equipment

865,804

832,484

228

6

1,765
71

1,783
1,021

Software
Other intangible assets

125,816
11,918120,743
10,459Total intangible assets

139,800

134,015

Intangible assets
Patent rightLeasehold interests in land
Goodwill

Investments and other assets
Investment securities

58,12551,356

Investments in subsidiaries and associates
Long-term loans receivable
Long-term loans receivable from subsidiaries
and associates
Investments in capital

460,74428

500,37421

183,220

197,716

13

13

Long-term prepaid expenses
Prepaid pension costs

13,973-

17,347
11,261

Deferred tax assets
Other investments

25,685
9,178

24,355
11,792(421)(1,677)

Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Current assets
Cash and deposits

750,547

812,561

1,756,152

1,779,060

52,611

39,886

Notes receivable - trade
Accounts receivable - trade
Accounts receivable from subsidiaries andassociates - trade
Accounts receivable - otherFinished goods

926
143,407597
236,518

37,06553,274

11,865
71

8,974
131

Raw materials
Supplies

27,67012,05646,445
12,563

Advance payments
Prepaid expenses
Short-term receivables from subsidiaries andassociates
Other current assets

1,156
1,598

4,585
1,313

33,44662,75533,95765,892

Allowance for doubtful accounts(1,416)(4,605)

Total current assets

354,416

528,3312,110,568

2,307,392

Total assets

26

27

(Million yen)
As of March 31,2021

As of March 31,2022

Liabilities
Non-current liabilities
Bonds payable
Long-term borrowings

474,998
346,744544,998
397,778

Long-term debt to subsidiaries and associates
Provision for retirement benefits
Provision for share awards for directors (and otherofficers)
Provision for gas holder repairs

3,096
61,576

3,268
59,593

-

84

2,781

2,978

Provision for safety measures
Provision for appliance warranties
Provision for contract loss in regards to appliancewarranties
Provision for point card certificates349
10,843

637
-

-

2,620

1,635

531

Asset retirement obligations
Other noncurrent liabilities

321
15,068324
11,030Total non-current liabilities

917,415

1,023,845

45,90938,493

Accounts payable - trade
Accounts payable - other49,926
41,63737,91243,022

Accrued expenses
Income taxes payable

47,976
4,523

49,332
16,448Advances received
Deposits received
Short-term borrowings from subsidiaries andassociates
Short-term debt to subsidiaries and associates

7,979
1,218

7,440
10,373125,997

138,157

56,57766,651

6,405

63,764Current liabilities
Current portion of non-current liabilities

Other current liabilities
Total current liabilities

388,152

471,596

1,305,568

1,495,442

141,844

141,844

Legal capital surplus

2,065

2,065

Total capital surplus

2,065

2,065

Legal retained earnings
Other retained earnings
Reserve for tax purpose reduction entry of
non-current assets
Reserve for overseas investment loss

35,45435,454

5,616

5,556

2,469

1,017

Reserve for adjustment of cost fluctuations
General reserve

141,000
339,000

141,000
339,000

Retained earnings brought forward

128,825

135,790652,365

657,819

Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus

Retained earnings

Total retained earnings
Treasury shares(3,907)(3,524)

Total shareholders' equity

792,368

798,204

22,40818,357(9,777)(4,612)

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

28

(Million yen)
As of March 31,2021
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

29

As of March 31,2022

12,631

13,745805,000

811,949

2,110,568

2,307,392

Non-consolidated Statements of Income(Million yen)
For the fiscal year
ended March 31,2021
Sales from gas business
Gas sales

For the fiscal year
ended March 31,2022

878,911

1,073,505

Gas transportation service revenue
Revenue from interoperator settlement

41,676
7,229

47,149
7,381

Total sales from gas business

927,817

1,128,036

Beginning inventories
Cost of products manufactured

94
467,835

71
654,125

Purchase of finished goods
Costs of gas for own use

17,1191,168

27,254
1,470

Cost of sales

Ending inventories

71

131

Total cost of sales

483,809679,848

Gross profit

444,007448,188

Supply and sales expenses
General and administrative expenses

356,082
67,544360,286
68,112

Total selling, general and administrative expenses

423,627

428,398

Profit on core business

20,38019,789

Revenue from installation work
Other miscellaneous operating revenue

37,867
118,626

36,471
107,109

Total miscellaneous operating revenue

156,493

143,581

37,56335,777

Miscellaneous operating revenue

Miscellaneous operating expenses
Installation work expenses
Other miscellaneous operating expenses

87,492

76,674

Total miscellaneous operating expenses

125,056

112,451

Revenue from incidental businesses

528,600

649,772

Expenses for incidental businesses

533,347

658,523

Operating profit

47,06942,16930

(Million yen)
For the fiscal year
ended March 31,2021
Non-operating income
Interest income

For the fiscal year
ended March 31,2022
556

605

Dividend income
Dividends from subsidiaries and affiliates

1,404
6,078

1,251
6,888

Gain on sales of raw materials
Miscellaneous income

14,735

7,898
6,377

Total non-operating income

22,77423,022

3,782
5,381

3,488
5,500

488
597

276
3,614

Foreign exchange losses
Miscellaneous expenses

363
12,467

6,746
7,330

Total non-operating expenses

23,08026,956

46,764

38,234Gain on sale of investment securities

4,786

2,117

Total extraordinary income

4,786

2,117

Profit before income taxes

51,55040,351

Income taxes - current
Income taxes - deferred

7,200
1,834

10,800(1,282)

Total income taxes

9,034

9,517

Profit42,51630,834Non-operating expenses
Interest expenses
Interest on bonds
Amortization of bond issuance costs
Provision of allowance for doubtful accounts

Ordinary profit
Extraordinary income

31