Introduction
CEO’s Message
How We Create ValueBusiness Strategy
Corporate Strategy
Financial Data

Business Strategy

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
Sustainability
Corporate Governance

Financial Data

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

19Tokyo Gas Group Integrated Report 2023

Sustainability Factbook

Introduction

For achieving the Vision

Our Strategy

FY2022 results

2030¥417.0 billion Approx. ¥200.0 billion

6.35 million tons

17.00 million tons*

Renewable power source
transaction volume (FY-end)

1.633 million kW

6.00 million kW*

No. of customer accounts

13.00 million

20.00 million

19.00 million tons

20.00 million tons

Natural gas transaction volume(FY)120.0 billion

1200.0 billion

Approx. ¥Approx. ¥25%
25%

250%
At the time of formulation of the management vision in 20192030

*1 The Compass2030 initial target: 10 million tons (Japan only) *2 The Compass2030 initial target: 5 million kW *3 All overseas businesses *4 Energy-related, real estate, other *5 Domestic gas, electricity, and network businesses

Financial Data

CO2 reduction contribution (base year:FY2013)(FY-end)Overseas*3Solutions, etc.*4
Energy*5 (gas + electricity + networks)

Corporate Strategy

operating profit + equity
income of subsidiaries

Company portfolio in 2030: Profit level

Business Strategy

Management guidelines and results

How We Create ValueOn November 27, 2019, we announced our new management vision, “Compass2030,” and on November 26, 2021, we announced Compass
Action to realize our management vision.
For half a century since LNG was first introduced in Japan, Tokyo Gas has led the expansion of this new energy and ushered in the era of natural gas.
We are in the midst of a new era of transformation, including decarbonization, digitalization, changes and diversification of customer values, andprogress in energy deregulation.
We aim to be a corporate group that continues to create value together with our customers, society and business partners while leading thenext generation of energy systems by capitalizing on the strengths of the Tokyo Gas Group, which has revolutionized energy and taken on thechallenge of realizing a sustainable society.

CEO’s Message

Compass2030 & Compass Action

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
Sustainability
Corporate Governance

Financial Data

Three challenges for achieving the Vision

Lead transition to Net-Zero CO2

Establish a value co-creation ecosystem

Transform the LNG value chain01

02

03

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

20Tokyo Gas Group Integrated Report 2023

Sustainability Factbook

Energy market’s digital marketing front runner

Top leader at the forefront of the transition

No. 1 player in customer satisfaction throughvalue co-creation at the last mile*5

Human resources system that encourages pursuitof challenges in ways that leverage diversity

Create value chain for e-methane*2
Form alliance for achieving low-cost, practical deployment ofhydrogen & carbon-neutral methaneHydrogen: ¥30/m * or lower (2030)
33

Launch services in Kanto area that provide solutions to eachtype of lifestyle need, then expand nationwide via alliances

Create renewable energy value chain leveraging
our Group’s unique strengths

Provider of solutions for community challenges

Establish revenue model that covers from power source
development, O&M*4 to renewable energy sales
Renewable energy transaction volume : 6 million kW (2030)

Financial strategy that promotes growth investing
Step up investment in growth areas by selling/replacing assets
and boldly revamping cost structure

Challenges to accelerate for achieving the Vision

Accelerate value co-creation via digitalization
and reinforced face-to-face engagement

Improve each business’s earning power andresilience to change

Mid-term management plan based on the Vision (Compass Transformation 23–25)

02

strategy

03

strategy

Achieve both stable energy
supply & decarbonization

p.22

strategy

Fully roll out Solutions
business

Realize a flexible corporate
culture resilient to change

Segment profits

ROAROED/E ratio

CO2 reduction contribution

Cumulative operating
cash flow

Growth investments

Infrastructure investments

Financial Data

Major coefficients

Corporate Strategy

01

New mid-term management plan

Business Strategy

Responsibly lead the transition with gaseous& renewable energy

How We Create Value

Provide nationwide and global solutions for decarbonizationand strengthening resilience through coordination with local
government & businesses

Employ and cultivate diverse human resources at eachinternal company and operating company

CEO’s Message

Use digital & face-to-face channels to increase retail power
contracts beyond 5 million in 2030

Enable more autonomous management of internal
companies and operating companies
Major realignment of management structure on a Group-wide level
Establish a business model that leads our market volatility
responsiveness toward the stabilization of earnings

IntroductionNationwide operation as a digital marketer(TG Octopus Energy Group Limited)Thoroughly use natural gas + develop practical CCUS*1
Strengthen gas-fired thermal power as balancer for
renewable energy

Corporate culture that enhances the earning
power of each business

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 corporateculture resilient to change
Introduction of Internal Companies
CFO’s Message

Corporate Strategy
Sustainability
Corporate Governance

Financial DataWeb Site
*1 Carbon capture, utilization & storage *2 Methane synthesized from non-fossil fuel energy raw materials (green hydrogen, etc.) *3 The hydrogen supply cost (CIF price) target set by the Japanese government. It is premised on a reduction in the cost of hydrogenproduction equipment, and achievement of low-cost renewable electricity made possible by factors such as growth of the renewable energy market. *4 Operation & maintenance *5 Technical work performed at customers’ residences

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

21

Tokyo Gas Group Integrated Report 2023

Sustainability Factbook