Performance in Fiscal 2013
Overview of Performance

Operating Income by BusinessResults in Fiscal 2013:
Increases in Both Sales and IncomeCity Gas
Operating income in the city gas business increased ¥11.3 billion, or8.0%, to ¥152.6 billion, because of an improvement of ¥28.8 billion
that resulted from the sliding time lag effect under the gas rateadjustment system as well as a ¥2.8 billion decrease in personnel
expenses following lower amortization of actuarial differences.

Up 1.6%

Gas Sales Volume:

An increase in sales mainly for industrial applications led to a 259
million m3 year-on-year, or 1.6%, rise in gas sales volume, to 16,245
million m3, if the volume of gas deemed to have been used forin-house power generation under the tolling scheme is included(14,735 million m3 if gas deemed to have been used for in-house
power generation is not included).

Up 10.3%

Net Sales:

Net sales were up ¥196.5 billion, or 10.3%, to ¥2,112.1 billion, due toincreased city gas sales as a result of higher unit prices and a rise inLNG sales.

Up 6.7%Net Income:

Net income was up ¥6.8 billion, or 6.7%, to ¥108.4 billion, following
higher operating income in the city gas business due to contributions
from a beneficial sliding time lag effect (see P.7) as well as strong
electric power business performance and favorable gas appliances
and installation work.

Shareholder Returns in Fiscal 2013

Dividend payments amounted to ¥25.1 billion, with dividends
unchanged year on year at ¥10 per share, and stock scheduled
for cancellation with a total value of ¥40.0 billion was repurchased.
The total payout ratio—60.0% of net income—remained above 60%.

Electric Power Business
Operating income in the electric power business rose ¥5.3 billion,or 27.7%, to ¥24.4 billion, as higher selling prices offset the slightly
lower sales volumes that resulted from the impacts of periodic
maintenance at Tokyo Gas Group-operated power plants.

Overseas Businesses
Operating income from overseas businesses increased ¥0.4 billion, or17.8%, to ¥2.8 billion, as the Pluto LNG Project in Australia commenced
full-fledged operation and therefore made larger contributions toincome. These contributions offset a decrease in interest income fromthe subordinated debt attached to the Bajio power plant in Mexicofrom fiscal 2012.

Gas Appliances and Installation Work
Operating income in the gas appliances and installation work segment rose ¥3.2 billion, or 72.7%, to ¥7.6 billion. A major factor behind
this increase was the demand rush that preceded the consumption
tax hike from 5% to 8% in April 2014, which drove a rise in new housing construction and higher sales of “ENE-FARM” residential fuel cellsystems and “Tokyo Gas Ecosystem (TES)” hot water systems.

Non-Operating Income and Expenses
In fiscal 2012, non-operating income of ¥1.8 billion was recorded,
due in part to income from the construction of dedicated pipeline
facilities for specific users outside supply areas. In fiscal 2013, adecrease in income from this source coupled with foreign exchange
losses recorded in relation to Australian dollar assets held by TOKYOGAS AUSTRALIA PTY LTD, which conducts accounting in U.S.
dollars, due to the impacts of Australian dollar depreciation, resulted
in non-operating expenses of ¥6.4 billion.

Summary of Operating Results

Billions of yenFiscal 2013

Gas sales volume (Million m3, 45MJ/m3)
Net salesOperating expenses
Operating income
Ordinary income
Net income

Change%14,735

15,390–655–4.3

2,112.1

1,915.6+196.5+10.3

1,946.0

1,770.0+176.0

+9.9

166.0

145.6

+20.4

+14.0

159.6

147.4

+12.2

+8.2

108.4

101.6

+6.8

+6.7

Economic Frame

Fiscal 2013
Fiscal 2012

Fiscal 2012

Pension Investment (non-consolidated)
JCC($/bbl)

Exchange rate(¥/$)

Averagetemperature (°C)

109.99100.1717.0

113.88

82.91

16.6

Fiscal 2013
Fiscal 2012
Fiscal 2011

Investment yield(costs deducted)
1.61%

1.5%

Year-end assets(Billions of yen)
273.0

6.10%

1.4%

276.0

5.13%

1.7%

254.0

Discount rate

Tokyo Gas Annual Report 20146