Tokyo Gas Group's
Invisible Assets
Since its foundation in 1885, the Tokyo Gas Group has steadily supplied gas
to industrial and household customers in the Greater Tokyo Area,and cultivated "invisible assets" that are not shown on financial statements
while supporting economic development and a good life.
Amid the advancing full deregulation of the electricity and gas retail markets
as well, the group will realize sustainable growth and the enhancement of
its corporate value while improving these invisible assets.

TOKYO GAS ANNUAL REPORT 2016

45Invisible assets

Tokyo Gas Group's Partner Companies

Business Outline of Lifeval, Enesta, and Enefit
Number of Outlets

Number of Staff

Over 200

Approx. 10,000

Lifeval, Enesta, and Enefit are service companies with strong local
community relationships that are engaged in meter reading, safety
inspection of gas shutoff taps and gas facilities, and sales,
installation and repair of gas appliances. Based on a marketingsystem with close connections to local communities, they have built
a strong relationship of trust with customers. Tokyo Gas has also
made a partial capital contribution to the companies and is
supporting their management.
Many staff that are involved in a full range of services have been
assigned to each outlet, and through operations spanning legal
inspections of gas facilities to sales and maintenance of gas
appliances, we have responded to customer needs. In the case ofsales of electricity to households and small commercial customers
as well, we have a marketing system that enables every single
customer to be visited individually, which has become a strength interms of the Tokyo Gas Group's electricity sales.
Lifeval and Enesta are fostering staff that not only specialize in gas
but also have specialist knowledge and qualifications related toelectricity such as electrical construction work qualifications. We
are thus making progress in the establishment of an organization
aimed at providing comprehensive energy services related to gas
and electricity.

In order to deliver natural gas safely and steadily to over 11 million
customers 24 hours a day and 365 days a year, we are continuallydeveloping human resources involved in safety. At a training facility
dedicated to developing safety staff in Tsurumi-ku, Yokohama City,a total of about 6,900 Tokyo Gas employees and employees at
Tokyo Gas Group partner companies a year are undergoingpractical training.
To support the stable supply of city gas, it is indispensable to havehuman resources that are equipped with advanced specializedskills in facility design, construction, and maintenance as well as
decision-making capabilities that enable the reliable execution ofgas supply and safety responsibilities at times of emergencies. The
trust of customers that has been earned as a result of expertise andefforts related to safety operations that we have accumulated
during the group's history of 130 years has also become a strengthof the Tokyo Gas Group. After full deregulation as well, we will strive
to maintain and enhance the level of safety through continuous
human resource development.

SkillsSafetyThe Group is continually endeavoring to share skills across theentire Group and further increase awareness regarding quality
enhancement in a wide range of areas related to customer safety
and services.
As part of initiatives aimed at improving skills, in the area of "gas tap
and gas appliance maintenance and regular safety inspection
operations," which represent an opportunity to come into contact
with our valued customers, we have held a practical skill
competition over a period of five years from 2011. Partnercompanies of Lifeval, Enesta and Enefit take part in this, and bycompeting in knowledge and skills that are required in daily
operations, it is refining its workplace skills.

Recent Skill Competitions' Details
Operational area

Number of participants

FY2013

Regular safety inspections

Approx. 750

FY2014

Gas taps

Approx. 800

FY2015

Gas appliance maintenanceApprox. 600

46TOKYO GAS ANNUAL REPORT 2016

Efforts toward Diversity

Basic Policy Regarding Promotion of Diversity

Strong commitment regarding diversity
The Tokyo Gas Group will promote diversity to ensuresustainable growth and development into the future
Amid increasingly fierce competition among companies in the energy
market, the Tokyo Gas Group aims to realize its Challenge 2020
Vision in order to continue to be selected by customers and achievesustainable growth and development in the future. One of theimportant challenges that we will tackle to this end on a groupwide
basis is the promotion of diversity. To continue to respond todiversifying customer needs, it is essential for every person working
in the group to make maximum use of their knowledge, ability, andexperience and excel. We aim to be a corporate group that willdevelop and expand systems that will support this aim and foster
awareness of it while also continuing to proactively create anorganizational culture where every working person can excel
regardless of their gender, age, or nationality, whether they aredisabled or not, or whether they are hired just after graduating or in
mid-career.

1 Active Promotion and Development of WomenTokyo Gas recognizes the critical need to promote the success ofa diverse pool of human resources and to create a workplaceenvironment that allows each and every employee to maximize hisor her various capabilities and strengths in order for it to secure
growth as a company. Guided by this understanding, we actively
recruit and promote women. As a result, our female employees
are excelling across a wide range of occupational fields, and theratio of women in management positions is also steadily
increasing. In April 2016, we appointed our first female executive

The Tokyo Gas Group will promote diversity in order tobecome a corporate group where every single working
person makes maximum use of their knowledge,abilities, and experience and excels.

1 We aim to realize an organization (diverse working
styles and productivity enhancement) in which
every person accepts each other's working style
while enhancing productivity.
2 We regard promoting the success of women as thebeginning of the promotion of diversity, and willcontinue to undertake this proactively.
3 We will establish a "Group Diversity Promotion
Team" and promote diversity in the entire Group in
an integrated manner with management.

officer, and opportunities for female employees to excel aresteadily expanding. In addition to upgrading and expanding ourchild-rearing and nursing care systems, Tokyo Gas placesconsiderable weight on fostering employee awareness andcreating an organizational culture that is conducive to developing
the careers of the company’s female employees by promoting avariety of initiatives including seminars. Looking ahead, we willcontinue to actively promote measures that will broaden
opportunities for women to excel, with the aim of having womenaccount for 10% of management positions in 2020.
2 Employment of People with Disabilities

Ratio of Women in Management

(%)

10.0

10.0
8.0

4.6

5.1

5.3

5.8

6.3

6.5

6.0
4.0

2011.4 2012.4 2013.4 2014.4 2015.4 2016.4 2020.4 (Targets)

TOKYO GAS ANNUAL REPORT 201647

At Tokyo Gas, people with disabilities work alongside our otheremployees and are performing a variety of duties. As of March
2016, 137 people with disabilities were in our employment,
achieving the statutory rate. To further expand employment ofpeople with disabilities and create opportunities for theirsuccess, we will newly establish a "Liaison Committee toPromote Employment of Disabled People," expand the locations
and scope of work opportunities in the company for people withdisabilities, and support initiatives by Group companies. At thesame time, we will promote the creation of an environment thatis safe and comfortable.

Invisible assets

Assigning personnel to strategic areas
We are prioritizing the deployment of personnel to the electricity powerbusiness and overseas businesses, which are strategic areas, in aneffort to promote their growth and expansion.

Electric power business

Human Resources

In tandem with the expansion of the electricity power business, weare emphasizing the deployment of personnel and developing
personnel in relation to this business. In addition, we are flexibly
engaged in mid-career recruitment of human resources withexperience and expertise.

Overseas businessTo expand overseas businesses, we increased the number ofoverseas employees by 2.5 times to about 100 during a period of five
years from 2011. We plan to increase the number of personnel to 200
in tandem with the scale and speed of business expansion.

In this period of transformation of the energy industry, namely, thefull deregulation of the electricity and gas retail markets, we areexchanging information broadly with not only electricity and gas
companies but also players in various industries. Moreover, we arepromoting cooperation in areas where we foresee mutual synergies
such as gas resource procurement and the electricity business(power plant construction and electricity sales).

LNG value chain
Using our technologies and know-how on its total energy business, we
provide energy solutions to customers which engage in business inSoutheast Asia and North America and contribute to projects such as
infrastructure building.
PetroVietnam Gas (Signed a memorandum of understanding to conduct a feasibility study onenergy solution businesses) ;PT Pertamina (Signing of a Memorandum of Understanding with Pertamina towards forming a
Strategic Alliance -Cooperation for Development of LNG Value Chain in Indonesia-)

Gas resource procurement
By enhancing and expanding alliance with LNG players in Japan andoverseas, we have flexibility and pricing competition in procurementof LNG.

Partners

Korea Gas Corporation; CPC Corporation, Taiwan; Kansai Electric PowerPower GenerationExpansion of competitive power generation capacity
JX Energy (Kawasaki Natural Gas Power Generation); Showa Shell Sekiyu (Ohgishima Power);
Kobe Steel (Electricity procurement from Moka Power Station); Idemitsu Kosan and Kyushu
Electric Power (Chiba-Sodegaura Energy)

Electricity Sales
Expand sales to high-voltage and extra-high-voltage customers
Tohoku Electric Power (Synergia Power); NTT Facilities and Osaka Gas (Ennet)

Expand sales to low-voltage customers
Business alliance with 18 companies including gas operators which are our city gas
wholesale customers (approx. 569,000 city gas customers)
Business alliance with 27 LP gas sales companies (approx. 310,000 city gas customers)
Making progress with talks about sales through partnerships with companies in housing,construction, equipment, telecommunication, information service, and other industries.

48

TOKYO GAS ANNUAL REPORT 2016