Introduction

Introduction ofInternal Companies

The holdings-type group structure

Nominating Committee

Representative Corporate
Executive Officer,
Presidentand CEO

Compensation Committee
Audit Committee

Audit Committee
OfficeBusiness Strategy

Board of Directors

How We Create Value

Organizational chart

CEO’s Message

In FY2022, the Tokyo Gas Group shifted to a group structure in which quasi-branchcompanies and business subsidiaries are self-run and grow by working with the market
and customers. In order to realize agile decision-making, we have expanded the discretionof the quasi-branch companies and business subsidiaries and pursue group synergy
through intergroup collaboration.
Under the new business structure, we promote transformation into a group with multiple
business pillars by improving the earning power of each business entity and resilience tofluctuations, and aim to realize Compass2030/Compass Action.
Here, we introduce the four companies and three key business subsidiaries of our Group.

Introduction
Contents

CEO’s Message

How We Create ValueThe Value Creation Process
Promoting Sustainability and Material issues

Business Strategy
Compass2030 & Compass Action
Compass Transformation 23-25
Strategy 1: Achieve both stable energy
supply & decarbonization
Strategy 2: Fully roll out Solutions
business
Strategy 3: Realize a flexible corporate
culture resilient to change
Introduction of Internal Companies
CFO’s Message

Corporate Strategy
Financial Data

Tokyo Gas Real Estate Co., Ltd.

Tokyo Gas Engineering Solutions Corporation

Tokyo Gas Network Co., Ltd.

Global Business Company

Green Transformation Company

Energy Trading Company

Corporate business

Customer & Business Solution Company

Corporate Strategy
Sustainability
Corporate Governance

Financial Data

Web Site
Investor Relations Website
Investors’ Guide(Financial Data and Industry Data)
Financial Results Presentation Materials
Financial Results Bulletin
Corporate Governance Report35Tokyo Gas Group Integrated Report 2023

Sustainability Factbook

As of March 31, 2023

4 locations

LNG procurement

Gas generation capacity

4 countries
13 projects Photo ofcourtesy
INPEX
13 million tons Corporation

Gas power generation atlocations in Japan

41.533 million kW

Annaka Solar Power
Plant

2030 Target
Renewable powersource transaction
volume2030 Target
e-methane

1% deployed

6 million kW

Number of businesses/
projects selected for public
offering by National Researchand Development Agency

3 projects

Ibaraki

Enefit23

GunmaTochigi

EnestaEnesta6Enesta64

Enefit7LIFEVAL

5Kanagawa

LIFEVAL

31Risks

 tagnation of business operation, increase inS
expenses, and missing of business opportunities
due to compliance with country-specific laws,
regulations and/or business practices
Impact of fluctuations in crude oil/gas prices
and foreign exchange rates on the revenue
and expenditure of overseas business
operations in general

Europe2 bases
1 business

Enefit1

Tokyo

Enefit9

LIFEVAL

34

Enefit33

CEO’s Message

How We Create ValueThe Value Creation Process
Promoting Sustainability and Material issues

Business Strategy
Compass2030 & Compass Action
Compass Transformation 23-25
Strategy 1: Achieve both stable energy
supply & decarbonization
Strategy 2: Fully roll out Solutions
business
Strategy 3: Realize a flexible corporate
culture resilient to change
Introduction of Internal Companies
CFO’s Message

Corporate Strategy
Sustainability
Corporate Governance

As of March 31, 2023

North America
1 base6 businesses

SoutheastAsia
6 bases
8 businesses
Australia
1 base5 businesses

Financial DataStrengths

Global Business CompanyIn North America and Australia, Global Business Company
has been engaging in resource development business, and inSoutheast Asia, it has focused on LNG infrastructure projects
by leveraging the know-how accumulated in Japan. In recentyears, we have also focused on the renewable energy business inNorth America and Scandinavia. Going forward, we will continue
replacing the asset portfolio while participating in growth areas,
including the decarbonization field, and acquiring and utilizing
functions that link our various businesses. We will promotecollaboration among the businesses we have developed so far, andexpand our earnings base across the board.

1Corporate Strategy

LIFEVAL

ContentsChibaSaitama

Major business areas table operating capability in LNG terminals,
S
power generation projects, etc.
E xpertise in resource development and LNG
infrastructure business that we have cultivatedso farAs of the end ofApril 2023

Number of LIFEVAL and other stores
EnestaIntroduction

Methanation facility

Business StrategyRisks

 ecrease in demand caused by intensified
Dcompetition driven by liberalization and changes
in lifestyle and business environmentPolicy changes and acceleration by national and local
governments, including laws, regulations, and systems
Delay in technological development required todeal with competition and alternatives

10 carriers

How We Create ValueStrengths

 ommunity-based sales network composed ofC
LIFEVAL, Enesta, and other outlets,
a customer base of over 13 million accounts,
the trust of customers
E xpertise in work requiring technical capability at
customers’ homes (i.e., device installation, repairs, etc.)
Energy solution technology and one-stop
provision of gas, electricity, and solutions

LNG terminals

CEO’s Message

 eclining competitiveness due to delayed
Dimplementation in societyL agging behind in the technological innovation
race
Uncertainty in international trading rules andsystem design for environmental value

LNG carriers owned
and managed by thecompany

Introduction

 cquiring technology and knowledge based onAalliances with overseas partners
R elationship cultivated in the power value chain
from power sources development and to retailH ydrogen production know-how cultivatedthrough fuel cell development, etc.

Risks

Customer & Business Solution
Company

Customer & Business Solutions Company provides customers
with gas and electricity and solutions for homes and businesses.
With “Resilience,” “Optimization,” and “Decarbonization” as thethree forms of value we provide, we offer easy-to-understand,systematized solutions for our customers, contributing to theresolution of social issues and the creation of value. In the BtoC
sector, we are strengthening not only LIFEVAL’s customer contact
points, but also digital contact points such as the member
site my TOKYOGAS. We are working to improve customer
satisfaction. In the BtoB sector, we offer a comprehensive range
of decarbonization products (CNL, renewable energy power,environmental consulting) to commercial and industrial customers,
and also collaborate with local governments to create attractive
towns, aiming to solve social issues by improving environmental
sustainability.

 roblems in raw material procurement due toP
geopolitical risks, etc. related to the import of
raw materials
Supply disruption due to damage to production,
supply, power generation facilities, etc. caused bylarge scale disasters
Impact on earnings due to fluctuations in LNG
and electricity wholesale market prices and costsof raw materials and fuels

Strengths

Green Transformation Company

GX Company was established in FY2023 as a specializedorganization to promote decarbonization of electricity and gas. In
the electricity sector, we are expanding the volume of renewableenergy that we handle, and we have invested in Principle PowerInc., which has a proven track record in Europe, for floating
offshore wind power, which is expected to be widely used in thefuture, and have begun studying a project in waters off the coastof Fukushima using the company’s technology. In the gas sector,
we are exploring the feasibility of multiple projects with the aimof building large-scale supply chains for e-methane. In addition,we are focusing on research to reduce the cost of hydrogenrequired for e-methane production and to develop high-precisionwind forecasting tools to increase the efficiency of wind powergeneration.

Risks

Photo courtesy of: Principle Power Inc.

Strengths

Energy Trading Company

This company includes the Raw Material Procurement Division,
which engages in LNG contracts and transportation; the ElectricPower Division, which deals with development and procurementof electric power sources; the Wholesale & Regional ServiceDivision, which provides energy solutions to other gas companies
and municipalities; and the Product Division, which operates LNG
terminals and power plants. Through LNG as a commodity, weaim to leverage our strengths that derive from having abundantassets and customer connections to ensure a stable supply andmaximize the value of energy. Furthermore, as market volatility isincreasing, we will work to establish monetization models. As aleading company handling natural gas, we will take the lead toward
net-zero CO 2 and create environmental value.

 bundant LNG-related assets (i.e., procurement
Acontracts, terminals and carriers); LNG trading
volume and trade management capabilities
S cale of electric power business (generationand retail)Trade experiences

Financial Data

Web Site
Investor Relations Website
Investors’ Guide(Financial Data and Industry Data)
Financial Results Presentation Materials
Financial Results Bulletin
Corporate Governance Report

36

Tokyo Gas Group Integrated Report 2023

Sustainability Factbook

Utsunomiya
Trunk Line

Gunma TrunkLine

Kumagaya–Sano
Trunk Line

Tokyo Gas
Network
service area

Ibaraki-Tochigi
Trunk Line

TochigiLine

Koga-Moka
Trunk Line

Saitou Trunk Line
No.2 Joso
Trunk Line

Saihoku Trunk Line
Saitama Trunk Line

IbarakiTrunk LineIntroduction
Contents

Joso Trunk Line upply disruption due to damage to supply
Sfacilities, etc. caused by large scale disasters

Risks

CEO’s Message

Domestic sales offices and business results
Hokkaido Sales
Energy service results
OfficeLNG terminal/LNG satellite results
Mapping system introduction
Nagano Salesresults
OfficeNiihama LNG Co., Ltd.
Kyushu Sales Office

Okinawa Sales Office

JR Tamachi Station

Pullman Tokyo
Tamachi*Pedestrian deck

Tamachi
StationTower S

Tamachi
StationTower N

Shibaura
Nursery
SchoolMinato Park
Shibaura

Shibaura Park

Aiiku
HospitalRedevelopment area

msb Tamachi (musubu Tamachi)*HotelCorporate Strategy

Nagisa TerraceRisks

 ecline in business potential due to real estateDmarket conditions, increased competition, orother environmental changes (includinginfectious diseases)D amage, malfunction, etc. of owned andmanaged properties caused by large-scaledisasters (earthquakes, fires, floods, etc.)

Wangan Douro Trunk Line

Kaitei Trunk Line

Shibahamaelementary
schoolStrengths

 wnership of high-quality lands in the TokyoO
metropolitan area
S ynergy achieved by leveraging the Group’sexpertiseL ong-standing track record of operation andmanagement of buildings

Chuo Trunk Line

Keihin Trunk LineBusiness Strategy

 apid change in the market environment due toR
intensified competition driven by liberalization
and rapid progress in decarbonization
Policy changes and acceleration by national andlocal governments, including laws, regulations,and systems
Supply disruption due to damage to equipment
and plants caused by large scale disasters

Total length of pipeline:
63,189 km(As of March 31, 2023)

How We Create Value ll-in-one proposal for service, energy and engineering
AInsights accumulated from the user’s
perspective and engineering solutions cultivatedthrough the management and operation ofplants and facilities
E xperience in engineering projects related to over
100 LNG terminals in 20 overseas countries

Shin-Negishi
Trunk Line

CEO’s Message

Chiba-Kashima Line
Chiba Trunk Line
No.2 Chiba Trunk Line

Yokohama Trunk LineStrengths

Tokyo Gas Real Estate Co., Ltd.

Taking full advantage of the land we have acquired over more than
130 years of business development, we have grown our office andresidential leasing business centering on central Tokyo based on theconcepts of stable earnings and improvement of asset value. We arealso actively working on energy proposals and urban development
based on our strong roots in the community through joint projects
with business partners. In the future, we will work to achieve stable
growth and increase revenue and efficiency through the expansionof development areas such as the establishment of a cyclicaldevelopment model that incorporates our own developed properties
into funds, participation in projects in Australia, and expansionof assets into logistics facilities and expansion of developmentareas, while at the same time strengthening our competitivenessby accelerating ESG-based development. We will also contribute tosustainable urban development by developing properties that arehighly resilient, comfortable and environmentally friendly.

Tokyo Gas
Network’s
high-pressure
gas pipelines

Tokyo Trunk LineRisks

Tokyo Gas EngineeringSolutions Corporation

Since the first LNG installation in Japan (1969), the Tokyo Gas
Group has been consistently involved in the entire LNG value chain.
Utilizing the technical strength and know-how we have cultivatedthroughout that involvement, we have provided solutions such asengineering and energy services for LNG terminal and pipeline
construction in Japan and overseas. As a key business subsidiary,Tokyo Gas Engineering Solutions will provide one-stop services,gas, power, and engineering to solve challenges for corporate
customers throughout Japan, and will expand the provision of
low-carbonization and decarbonization solutions that combine
renewable energy to create environmental value.

Strengths

Tokyo Gas Network Co., Ltd.

 any years of experience in safe and stableMsupply of gas
T ies with customers and communities thathave been cultivated through the pipelinebusiness

Introduction

Supply areas and pipeline networks
The Tokyo Gas Group has been expanding the use of natural
gas while ensuring a safe and stable supply. Tokyo Gas Network
has inherited the gas pipeline business from Tokyo Gas, andcommenced operations on April 1, 2022. In addition to actively
promoting sales of city gas and contribution to CO 2 emission
reductions at customer sites, we will improve value-added
businesses by using smart meters and enhance regional value bycollaborating with infrastructure operators, thereby maintaining
industrial and technological innovation and a foundation for people’slives. We will also continue to promote the spread of natural gas
and create environmental value by promoting gas-based lowcarbonization and decarbonization.

How We Create ValueThe Value Creation Process
Promoting Sustainability and Material issues

Business Strategy
Compass2030 & Compass Action
Compass Transformation 23-25
Strategy 1: Achieve both stable energy
supply & decarbonization
Strategy 2: Fully roll out Solutions
business
Strategy 3: Realize a flexible corporate
culture resilient to change
Introduction of Internal Companies
CFO’s Message

Corporate Strategy
Sustainability
Corporate Governance

Financial Data

Financial Data

Web Site
Investor Relations Website
Investors’ Guide(Financial Data and Industry Data)
Financial Results Presentation Materials
Financial Results Bulletin

Photo courtesy of INPEX Corporation37

Tokyo Gas Group Integrated Report 2023

Corporate Governance Report
Sustainability Factbook