Consolidated Financial Statements
Consolidated Balance Sheets March 31, 2013 and 2012
Millions of yen

AssetsThousands of U.S. dollars

2012

2013

2013		Production facilities¥  171,318¥  167,882$ 1,767,179		Distribution facilities

475,262

466,227

4,907,653		 Service and maintenance facilities

62,74064,125675,000		Other facilities

304,245

321,751

3,386,853

Noncurrent assets
Property, plant and equipment

316

316

3,326

91,705

119,699

1,259,989

1,105,587

1,140,003

12,000,032

741

827

8,705		Other

47,98764,055674,263			Total intangible assets

48,72964,882682,968		Investment securities

131,305

154,476

1,626,063		 Long-term loans receivable

24,164

21,934

230,884		 Deferred tax assets

35,06031,531331,905		Other

28,92640,155

422,684

(750)

(618)

(6,505)

218,706

247,479

2,605,042

1,373,023

1,452,365

15,288,053		Inactive facilities		 Construction in progress			 Total property, plant and equipment

Intangible assets		Goodwill

Investments and other assets		 Allowance for doubtful accounts			 Total investments and other assets			Total noncurrent assets

Current assets
Cash and deposits

80,14980,669849,147

Notes and accounts receivable-trade211,969

222,649

2,343,674

Lease receivables and investment assets

27,751

27,486289,326

Short-term investment securities

44,00664,009673,779

Merchandise and finished goods

3,538

4,374

46,042Work in process

10,734

10,718112,821

Raw materials and supplies

42,70067,179707,147

Deferred tax assets

12,49912,412

130,653

Other

58,161

51,183538,768

(649)

(644)

(6,779)Allowance for doubtful accounts			Total current assets
Total assets

490,861

540,038

5,684,611¥1,863,885¥1,992,403$20,972,663* Equivalent U.S. dollar amounts are included for the convenience of readers outside Japan, and are converted at a rate of ¥95 per U.S. dollar, the prevailing exchange rate at the end of March 2013. These
conversions should not be construed as representations that the Japanese yen amounts have been, could have been, or could in the future be, converted into U.S. dollars at this or any other rate of exchange.

46

Tokyo Gas

Annual Report 2013

Millions of yen

Thousands of U.S. dollars

20122013

2013¥  331,493¥  321,494$ 3,384,147

Long-term loans payable

231,520

256,899

2,704,200

Deferred tax liabilities

12,22912,601

132,642

Provision for retirement benefits

85,578

86,100906,316

Provision for gas holder repairs

3,268

3,365

35,421

Provision for safety measures

2,217

2,384

25,095

Asset retirement obligations

4,679

6,009

63,253

Other

24,931

24,015

252,789

695,920712,871

7,503,905

Current portion of noncurrent liabilities

43,63146,752

492,126

Notes and accounts payable-trade

92,66092,154970,042

Short-term loans payable

16,59915,036158,274

Income taxes payable

30,47944,433

467,716

Deferred tax liabilities

6442

Liabilities and net assets

Noncurrent liabilities
Bonds payable		 Total noncurrent liabilities

Current liabilities

199

—

—

129,288

134,638

1,417,242

312,864

333,019

3,505,463

1,008,785

1,045,891

11,009,379		 Capital stock *1

141,844

141,844

1,493,095		Capital surplus

2,065

2,065

21,737		Retained earnings

706,620

780,196

8,212,589		 Treasury stock *(2,196)(2,348)(24,716)

848,333

921,757

9,702,705		 Valuation difference on available-for-sale securities

14,853

21,218223,347		 Deferred gains or losses on hedges(1,370)(1,670)(17,579)

		 Foreign currency translation adjustment(22,649)(13,671)(143,905)

		 Total valuation and translation adjustments(9,166)

5,877

61,863

15,933

18,877

198,705

Asset retirement obligations
Other		 Total current liabilities		Total liabilities

Net assets
Shareholders’ equity

2		 Total shareholders’ equity

Valuation and translation adjustments

Minority interests		 Total net assets
Total liabilities and net assets

855,100

946,511

9,963,274¥1,863,885¥1,992,403$20,972,663*1	Capital stock
Common stock
Authorized: 6,500,000,000 shares
Issued: 2,577,919,295 shares as of March 31, 2013 / 2,590,715,295 shares as of March 31, 2012
*2 Treasury stock: 6,123,070 shares as of March 31, 2013 / 6,005,359 shares as of March 31, 2012

Tokyo Gas

Annual Report 201347

Consolidated Financial Statements

Consolidated Statements of Income Years ended March 31, 2013 and 2012
Millions of yen

Thousands of U.S. dollars

2012

2013

2013

Net sales¥1,754,257¥1,915,639$20,164,621

Cost of sales

1,215,427

1,311,488

13,805,137

Gross profit

538,829604,150

6,359,474

Supply and sales expenses

393,689

389,787

4,103,021

General and administrative expenses

68,064

68,730723,474		 Total selling, general and administrative expenses

461,754458,517

4,826,495

Operating income

77,075

145,633

1,532,979

Interest income

1,368

1,676

17,642

Dividends income

1,798

2,447

25,758Equity in earnings of affiliates

4,989

3,091

32,537

162

2,839

29,884

7,249

9,366

98,58915,56819,420204,421

Interest expenses

10,184

11,366

119,642

Adjustment of charges for constraction of distribution facilities

2,567

2,348

24,716

Miscellaneous expenses

4,272

3,886

40,905		 Total non-operating expenses

17,023

17,601

185,274

Ordinary income

75,620147,453

1,552,137

3,010

—

—

—

1,020

10,737

Selling, general and administrative expenses

Non-operating income

Revenue from dedicated equipment
Miscellaneous income			Total non-operating income
Non-operating expenses

Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities—

3,49036,737

3,010

4,510

47,474

Impairment loss

1,143

1,518

15,979Loss on reduction of noncurrent assets

Gain on sales of subsidiaries and affiliates’ stocks		 Total extraordinary income
Extraordinary loss

2,833

—

—		 Total extraordinary losses

3,977

1,518

15,979

Income before income taxes

74,654150,445

1,583,632

Income taxes-current

22,704

44,392

467,284

Income taxes-deferred

4,620

2,122

22,337		 Total income taxes

27,32446,514

489,621

Income before minority interests

47,329103,930

1,094,000

Minority interests in income
Net income

1,268

2,252

23,705¥   46,060¥  101,678$ 1,070,295

Yen

U.S. dollars

2012

2013

2013

¥17.70¥39.52

$0.42

9.00

10.00

0.11

Amounts per share of common stock
Net income
Cash dividends applicable to the year

* Equivalent U.S. dollar amounts are included for the convenience of readers outside Japan, and are converted at a rate of ¥95 per U.S. dollar, the prevailing exchange rate at the end of March 2013. Theseconversions should not be construed as representations that the Japanese yen amounts have been, could have been, or could in the future be, converted into U.S. dollars at this or any other rate of exchange.

48

Tokyo Gas

Annual Report 2013

Consolidated Statements of Changes in Net Assets Years ended March 31, 2013 and 2012
Millions of yen

Shareholders’ equity
Capital stock		 Balance at the beginning of current period		 Changes of items during the period			 Total changes of items during the period		 Balance at the end of current period
Capital surplus		 Balance at the beginning of current period		 Changes of items during the period			 Total changes of items during the period		 Balance at the end of current period
Retained earnings		 Balance at the beginning of current period		 Changes of items during the period			Dividends from surplus			Net income			 Retirement of treasury stock				 Total changes of items during the period		 Balance at the end of current period
Treasury stock		 Balance at the beginning of current period		 Changes of items during the period			 Purchase of treasury stock			 Disposal of treasury stock			 Retirement of treasury stock				 Total changes of items during the period		 Balance at the end of current period
Total shareholders’ equity		 Balance at the beginning of current period		 Changes of items during the period			Dividends from surplus			Net income			 Purchase of treasury stock			 Disposal of treasury stock				 Total changes of items during the period		 Balance at the end of current period
Valuation and translation adjustments
Valuation difference on available-for-sale securities		 Balance at the beginning of current period		 Changes of items during the period			 Net changes of items other than shareholders’ equity				 Total changes of items during the period		 Balance at the end of current period
Deferred gains or losses on hedges		 Balance at the beginning of current period		 Changes of items during the period			 Net changes of items other than shareholders’ equity				 Total changes of items during the period		 Balance at the end of current period
Foreign currency translation adjustment		 Balance at the beginning of current period		 Changes of items during the period			 Net changes of items other than shareholders’ equity				 Total changes of items during the period		 Balance at the end of current period
Total valuation and translation adjustments		 Balance at the beginning of current period		 Changes of items during the period			 Net changes of items other than shareholders’ equity				 Total changes of items during the period		 Balance at the end of current period
Minority interests		 Balance at the beginning of current period		 Changes of items during the period			 Net changes of items other than shareholders’ equity				 Total changes of items during the period		 Balance at the end of current period
Total net assets		 Balance at the beginning of current period		 Changes of items during the period			Dividends from surplus			Net income			 Purchase of treasury stock			 Disposal of treasury stock			 Net changes of items other than shareholders’ equity				 Total changes of items during the period		 Balance at the end of current period

Thousands of U.S. dollars

2012

2013

2013

¥141,844¥141,844$1,493,095—
141,844—
141,844—
1,493,095

2,065

2,065

21,737

—
2,065

—
2,065

—
21,737

718,439

706,620

7,438,105(23,683)
46,060(34,196)(11,819)
706,620(23,204)
101,678(4,897)73,575780,196(244,253)
1,070,295(51,547)
774,474
8,212,589(2,355)(2,196)(23,116)(34,046)
8
34,196158(2,196)(5,053)
3
4,897
(151)
(2,348)(53,189)
32
51,547(1,589)(24,716)

859,994

848,333

8,929,821(23,683)
46,060(34,046)
8(11,661)
848,333(23,204)
101,678(5,053)
4
73,424
921,757(244,253)
1,070,295(53,189)42
772,884
9,702,705

14,78814,853

156,347

64
64
14,8536,365
6,365
21,21867,00067,000223,347

1,145(1,370)(14,421)(2,516)(2,516)(1,370)

(299)
(299)
(1,670)(3,147)(3,147)(17,579)(17,008)(22,649)(238,411)(5,640)(5,640)(22,649)

8,978
8,978
(13,671)

94,50594,505(143,905)(1,073)(9,166)(96,484)(8,092)(8,092)(9,166)

15,043
15,043
5,877

158,347
158,347
61,863

15,174

15,933

167,716759
759
15,933

2,943
2,943
18,87730,97930,979198,705

874,094

855,100

9,001,053(23,683)
46,060(34,046)
8(7,333)(18,994)¥855,100(23,204)
101,678(5,053)
4
17,987
91,411¥946,511(244,253)
1,070,295(53,189)42
189,337
962,221$9,963,274* Equivalent U.S. dollar amounts are included for the convenience of readers outside Japan, and are converted at a rate of ¥95 per U.S. dollar, the prevailing exchange rate on the end of March 2013. Theseconversions should not be construed as representations that the Japanese yen amounts have been, could have been, or could in the future be, converted into U.S. dollars at this or any other rate of exchange.

Tokyo Gas

Annual Report 201349

Consolidated Financial Statements

Consolidated Statements of Cash Flows Years ended March 31, 2013 and 2012
Millions of yen

Thousands of U.S. dollars

2012

2013

2013

Income before income taxes¥ 74,654¥ 150,445$ 1,583,632

Depreciation and amortization

Net cash provided by (used in) operating activities

144,438

135,015

1,421,211

Impairment loss

1,143

1,518

15,979Amortization of long-term prepaid expenses

4,067

3,755

39,526

Loss on retirement of property, plant and equipment

2,917

2,079

21,884

Loss (gain) on sales of investment securities(25)(1,020)(10,737)

Loss (gain) on sales of stocks of subsidiaries and affiliates—(3,490)(36,737)

Decrease (increase) in prepaid pension costs(9)(11,395)(119,947)

Interest and dividends income(3,166)(4,124)(43,411)

Interest expenses10,184

11,366

119,642

Equity in (earnings) losses of affiliates(4,989)(3,091)(32,537)

Decrease (increase) in notes and accounts receivable-trade(52,333)(11,305)(119,000)

Decrease (increase) in inventories(7,960)(25,238)(265,663)

Increase (decrease) in notes and accounts payable-trade

21,887(2,373)(24,979)

Increase (decrease) in accrued consumption taxes

1,111

4,424

46,568Other, net(12,157)

2,193

23,084

Subtotal

179,759

248,758

2,618,505

Interest and dividends income received

10,1407,815

82,263Interest expenses paid

(10,217)(11,213)(118,032)

Income taxes paid

(29,864)(28,162)(296,442)

149,818

217,197

2,286,284		 Net cash provided by (used in) operating activities
Net cash provided by (used in) investment activities(1,133)(8,287)(87,232)

Purchase of property, plant and equipment(124,063)(153,687)(1,617,758)

Purchase of intangible assets(16,323)(22,634)(238,253)

777

1,487

15,653(1,354)(2,323)(24,453)—

5,066

53,326

Payments of long-term loans receivable(7,053)(6,732)(70,863)

Collection of long-term loans receivable

1,710

9,736

102,484

Purchase of investment securities

Proceeds from sales of long-term investment securities
Purchase of long-term prepaid expenses
Proceeds from sales of stocks of subsidiaries and affiliates

Other, net		 Net cash provided by (used in) investment activities

45,630(400)(4,211)(101,810)(177,775)(1,871,316)

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable(1,225)(1,562)(16,442)

Proceeds from long-term loans payable

68,25833,019347,568

Repayment of long-term loans payable(19,555)(24,218)(254,926)

Proceeds from issuance of bonds

40,00020,000210,526

Redemption of bonds(30,000)(20,000)(210,526)

Purchase of treasury stock(34,046)(5,053)(53,189)

Cash dividends paid

(23,671)(23,204)(244,253)(509)(1,386)(14,589)(15,703)(805)(8,474)(16,454)(23,212)(244,337)

Cash dividends paid to minority shareholders
Other, net		 Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents(1,518)

5,481

57,695

Net increase (decrease) in cash and cash equivalents

30,034

21,691

228,326

Cash and cash equivalents at beginning of period

92,048122,083

1,285,084

—508

5,347

¥122,083¥ 144,283$ 1,518,768

Increase in cash and cash equivalents resulting from merger
Cash and cash equivalents at end of period* Equivalent U.S. dollar amounts are included for the convenience of readers outside Japan, and are converted at a rate of ¥95 per U.S. dollar, the prevailing exchange rate at the end of March 2013. Theseconversions should not be construed as representations that the Japanese yen amounts have been, could have been, or could in the future be, converted into U.S. dollars at this or any other rate of exchange.

50Tokyo Gas

Annual Report 2013