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Introduction

Management
Message

How We Create Value

Invisible
AssetsCompass2030
Vision and Strategy

TCFD

Corporate
GovernanceBusiness
Overview

Financial Data

Compass2030

Compass2030
Tokyo Gas Group Management Vision

Providing energy and solutions for future lifestyles, society and the earth
On November 27, 2019, we announced a new management vision called “Compass2030”, in which we presented what we aim to be in a
decade from now, as a leading domestic company dealing in natural gas (a fossil fuel).

VISION- What we aim to be in 2030 -Our goal will be a businessgroup which continues
to create value together withour customers,
business partners and society
as a whole while
becoming a leader in futureenergy systems.

Management guidelines and key figures
FY2020 results

2030

200.0 billion¥79.1 billion Approx. ¥Profit level

Contribution to CO 2 emissions-6.68 million tons
reduction (base year: FY2013)
Renewable power source
transaction volume (FY-end)

1.383 million kW

No. of customer accounts

12.31 million(FY-end)Natural gas transaction volume(FY)

Company portfolio in 2030: Profit level

18.20 million tons

Overseas* 1Solutions, etc*2
Energy*3 (Gas + Power)

200.0 billion¥25%-10.00 million tons

25%

5.00 million kW
20.00 million
20.00 million tons

Approx.

50%
Present2030*1 Overseas: All overseas businesses *2 Solutions, etc.: Ongoing service agreements, engineering, real estate, etc. *3 Energy: Domestic gas and power businessTokyo Gas Integrated Report 2021
21Back To Contents

Introduction

Management
Message

How We Create Value

Invisible
AssetsCompass2030
Vision and Strategy

Corporate
Governance

TCFD

BusinessOverview

Financial Data

Compass2030

Q

What do you mean by “a businessgroup which continues to create value”?

AWe envision a business group thatestablishes a “value co-creation”
ecosystem and provides a varietyof solutions.

We will strive to establish a value co-creation
ecosystem by leveraging the strengths of ourgroup, such as Tokyo Gas Lifeval, which functions
as our last mile*2, and by promoting business
partner participation via alliances with companies
in different industries and other firms, andcooperation with local governments.
Moreover, by having customers participate in theecosystem, we will flexibly combine diverse
products, technologies and services, and provide
a variety of solutions that resolve various issues inareas ranging from individual lifestyles to thelocal community.
*1 Ecosystem: Business environment in which many companies combine
their technologies, expertise, and knowledge in their specific areas ofstrength in order to create new value.
*2 Last mile: Site operations that require human intermediation in the final
process of the value chain.

A value co-creation ecosystem*1

Local community

Stable supply

Lifestyle setting

Environmental
awareness

Enhanced resilience

Introduction ofdecarbonization
technologies

ComfortEconomicefficiency

Creation of comfort
tailored to thecustomer

Business setting

Advanced energymanagement

Provision of solutions for the homeExpansion of management service

Comfortable living spaces
Lifestyles solutions that match life cycles

Air conditioning control for office spaces
Inter-area energy exchange between
redeveloped or industrial parks and thelocal community

Customer participation

Strengths of the Tokyo Gas Group

Business partner participation

Volume of energy use and equipment
operation
Data on spaces and living environments
Excess energy from prosumers
Life cycle and lifestyle preferences

Data and connections with customers(primarily through Tokyo Gas Lifeval)
Provision of gas, electricity and solutions
Equipment/appliances, construction andmaintenance

Energy technologies (IoT equipment,storage batteries)
Digital technologies (blockchain)
Data analysis (AI)Connections with individual company
customers

Tokyo Gas Integrated Report 2021
22

Back To Contents

Introduction

Management
Message

How We Create Value

Invisible
AssetsCompass2030
Vision and Strategy

TCFD

Corporate
GovernanceBusiness
Overview

Financial Data

Compass2030

Q

How do you plan to “lead the futureenergy systems”?

AWe will coordinate
renewable energies andnatural gas.

Coordination of renewable energies and natural gas

Acquisition of renewable power sources

New businesses utilizing decentralized power sources

Expand renewable power source transaction
volumes both at home and abroad

Promote new decentralized businesses utilizing PV* 1,
storage batteries, EV*2, etc. as well as VPP*3

5 millon kW
We will expand the transaction volume ofrenewable energy sources in Japan and abroad. We
are also developing a new business to use PV*1,
storage batteries, and other decentralized powersources for residential customers. Further we arepromoting Virtual power plant (VPP*3). Fluctuationin the generation volume of renewable energy,
which is susceptible to the weather, iscomplemented by easily-controllable naturalgas-fired power generation.
By using digital technology and combining
decentralized power sources with large-scale
power sources, which include renewable energies
and natural gas-fired power plants, we intend toachieve a stable and inexpensive supply of energy.

1.383

Overseas

millon kW
Domestic

2020

2030

Domestic and overseas
renewable energy resource
transaction volumePV

Onshore/offshore
wind power

Hydroelectric
powerBiomass

Stable supply through the combination of renewableenergies and natural gas, using digital technology

Effective use of natural gas
Adjustment of fluctuating renewable energy output using
gas-fired power generation and gas cogeneration systems*1 PV: Photovoltaic power, *2 EV: Electric vehicles,*3 VPP: Virtual power plant. A mechanism that uses IoT to manage andcontrol decentralized power sources, batteries, etc. as if they were asingle power plant.

Gas-fired power plantTokyo Gas Integrated Report 2021
23Gas cogeneration systems

ENE-FARM

Back To Contents

Introduction

Management
Message

How We Create Value

Invisible
AssetsCompass2030
Vision and Strategy

TCFD

CorporateGovernanceBusinessOverview

Financial Data

Compass2030

Q1

Transformation of the LNG
value chain to maximize eachof its functions
We intend to create various types of value
in each of the functions—from trading toproduction and power generation,networks, and customer solutions— so as
to expand our customer base.

A

How do you “continue tocreate value”?

We plan to continue to create value by
taking the following four measures

23

4

Solving problems indaily life and businesses

Leading the transition toa decarbonized society

Overseas expansion

We will develop solutions via cooperatingwith business partners at an accelerated
rate so as to confront customers’ needs
and resolve their problems. We will alsoestablish a digital infrastructure for value
co-creation and combine a range of data
and AI predictions, so as to instantly
provide solutions tailored to individual
customers’ needs.

The Tokyo Gas Group is promoting
effective use of natural gas, expansion ofrenewable energy sources, anddevelopment of core element
technologies for decarbonization, as weare taking up the challenge to achieve
Net-Zero CO2 emissions, including
customer emissions, in our overallbusiness activities.

Tokyo Gas Integrated Report 2021
24

We will develop LNG infrastructure, invest
in shale gas and other resource
development, and renewable energy
businesses, and expand LNG transaction
and LNG trading by making use of ourrelated asset holdings. By taking theseactions, we aim to triple overseas profits.