10-Year Consolidated Financial Highlights*

Contents

1Figures for FY2021 in Financial data are the figures announced on April 27, 2022 (before reflecting the retrospective application).
Introduction2013.32014.32015.32016.32017.32018.32019.32020.32021.32022.3

1,915,639

2,112,117

2,292,548

1,884,656

1,587,085

1,777,344

1,962,308

1,925,235

1,765,146

2,145,197

Operating Profit (¥ million)

145,633

166,044

171,753

192,008

58,365

116,30293,704

101,418

77,675

117,777

Operating Profit Margin (%)

7.60

7.86

7.49

10.19

3.68

6.54

4.78

5.27

4.40

5.49

Ordinary Profit (¥ million)

147,453

159,613

168,169

188,80955,688111,546

89,386102,645

70,500126,732

Profit attributable to owners of parent (¥ million)

101,678

108,451

95,828111,936

53,13474,98784,55543,29349,50588,745Equity (¥ million)

927,634

1,011,787

1,069,515

1,100,271

1,101,498

1,136,027

1,159,055

1,147,747

1,153,813

1,227,198

1,992,403

2,176,816

2,257,662

2,251,518

2,230,269

2,334,316

2,428,149

2,539,919

2,738,348

3,216,942

Interest-bearing Debt (¥ million)

642,550

713,823

730,739715,769

713,596

724,940

803,216

905,066

1,065,988

1,220,589

Operating Cash Flow (¥ million)

240,448

248,831237,680

257,122

217,439

240,328

246,436

213,171229,315

289,691

Free Cash Flow (¥ million)

56,651827

13,08425,08914,081

31,58322,655(13,887)(17,116)

82,465

EBITDA (¥ million)

284,403

306,424

313,605

337,194

222,670

281,643

255,585

271,296

257,485

318,723

Capital Expenditure (¥ million)

183,797

248,004

224,596

232,033

203,358208,745

223,781

227,058

246,431207,226

Depreciation (¥ million)* 2

138,770

140,380

141,852

145,187

164,305

165,342

161,881

169,878

179,810

200,946

EPS (Earnings per Share) (¥)

39.52

43.10

39.15

46.68

23.02

164.12* 3

187.6097.86

112.26201.84

BPS (Book Value per Share) (¥)

360.70402.91438.28460.35479.742,487.58* 3

2,575.99

2,602.53

2,616.37

2,791.95

2,577,919

2,517,551

2,446,778

2,396,778

2,302,856

458,073* 3

451,356

442,436

442,436440,997

10

10

10

11

11

55* 3

60

60

60

652.91

2.59

2.34

2.42

2.29

2.25

2.35

2.29

2.30

2.40

CEO’s Message
How We Create ValueNet Sales (¥ million)

Compass2030
Invisible Assets
Information Disclosure Basedon TCFD Recommendations
Corporate GovernanceBusiness Overview

Financial Data
10-Year Consolidated Financial
Highlights
Consolidated Balance Sheets

Total Assets (¥ million)

Number of Issued Shares (Common Stock) (thousands ofshares)
Dividend per Share (¥)

Consolidated Statements of Income /Consolidated Statements ofComprehensive Income
Consolidated Statements of Cash
Flows
Delayed Impact of Gas Rate
Adjustment System

Web SiteInvestor Relations Website

DOE (Dividends on Equity) (%)

Investors’ Guide (Financial
Data and Industry Data)

Notes:* 1 The financial information contained in this integrated report is based on annual securities report. However, it has not been audited by Audit firms etc.
*2 Depreciation includes amortization of long-term prepaid expenses.
*3 The Company carried out a share consolidation at a ratio of 5 common shares to 1 on October 1, 2017.
The dividend per share of ¥55.0 is calculated on the post-consolidation basis (the interim dividend of ¥5.50 per share before the share consolidation and the year-end dividend of ¥27.50 per share after the share consolidation).

Financial Results
Presentation Materials
Financial Results Bulletin
Corporate Governance
ReportTokyo Gas Group Integrated Report 2022

65

Sustainability ReportContentsIntroduction2013.32014.32015.32016.32017.32018.32019.32020.32021.32022.3

Payout Ratio (%)

25.3

23.2

25.5

23.6

47.8

33.5

32.0

61.3

53.4

32.2

Total return ratio (%)

60.7

60.0

60.9

60.1

60.7

60.2

60.3

61.0

60.1

50.2

Current Ratio (%)

162.2

156.7

150.6

155.5

142.7

135.6

156.0

152.0

132.7

152.4

D/E (Debt-Equity) Ratio (times)

0.69

0.71

0.68

0.65

0.65

0.64

0.69

0.79

0.92

0.99

Equity Ratio (%)

46.6

46.5

47.4

48.9

49.4

48.7

47.7

45.2

42.1

38.1

ROE (Return on Equity) (%)

11.5

11.2

9.2

10.3

4.8

6.7

7.4

3.8

4.3

7.5

ROA (Return on Assets) (%)

5.3

5.2

4.3

5.0

2.4

3.3

3.6

1.7

1.9

3.0

Total Asset Turnover (times)

0.99

1.01

1.03

0.84

0.71

0.78

0.82

0.780.67

0.72

WACC (%)

3.2

3.2

3.6

3.4

3.0

3.1

3.0

2.7

2.6

2.3

Number of city gas retail customers (thousand)

9,721

9,844

9,982

10,125

10,26910,209

9,821

9,129

8,863

8,688

Gas sales volume (million m3)

15,39014,735

15,541

15,436

15,72015,56815,19813,855

12,99013,131

16,741

17,22518,36018,587

19,05319,052

18,397

17,666

17,577

17,087

—

——

—

635

1,105

1,742

2,350

2,717

3,014

9.98

9.71

10.61

10.96

12.65

14.66

15.48

20.60

24.76

28.29CEO’s Message
How We Create Value
Compass2030
Invisible Assets
Information Disclosure Basedon TCFD Recommendations
Corporate GovernanceBusiness Overview

Financial Data

Gas Sales Volume, Gas Volume used in-house* 4
Number of electricity retail customers (thousand)Electric power sales volume (billion kWh)

10-Year Consolidated Financial
Highlights
Consolidated Balance Sheets
Consolidated Statements of Income /Consolidated Statements ofComprehensive Income
Consolidated Statements of Cash
Flows
Delayed Impact of Gas Rate
Adjustment System*4: It is the amount that added self-consuming volume (excluded volume for Nijio) to a consolidated gas sales volume.

Web Site

Computations
Operating Cash Flow = Profit attributable to owners of parent + Amortization of Long-term
Prepaid Expenses + Depreciation
Free Cash Flow = Profit attributable to owners of parent + Amortization of Long-term
Prepaid Expenses + Depreciation – Capital Expenditure
Current Ratio = Current Assets (year-end) / Current Liabilities (year-end) x 100
Debt-Equity Ratio = Interest-bearing Debt (year-end) / Equity (year-end)

Equity Ratio = Equity (year-end) / Total Assets (year-end) x 100
Total Asset Turnover = Net Sales / Total Assets (average)

WACC calculation data (fiscal 2021 actual)
Cost of interest-bearing debt: Real interest rate of 0.61% (after tax)
Cost of shareholders’ equity
Risk-free rate: 10-year JGB yield of -0.091%
Risk premium: 5.5%, Beta coefficient of 0.75

Investor Relations Website
Investors’ Guide (FinancialData and Industry Data)
Financial Results
Presentation Materials
Financial Results Bulletin
Corporate Governance
ReportTokyo Gas Group Integrated Report 202266

Sustainability ReportContents

Consolidated Balance Sheets(Million yen)2021.3.31Introduction(Million yen)2021.3.31

2022.3.31

AssetsLiabilities

Non-current assets

Non-current liabilities

2022.3.31

CEO’s Message
How We Create Value

Bonds payable

474,998

548,619

Compass2030

Production facilities

231,177

218,956

Long-term borrowings

458,881568,725

Invisible Assets

Distribution facilities

594,662

578,394

Deferred tax liabilities

24,26929,641Service and maintenance facilities

15,992

15,417Retirement benefit liability

58,416

66,195

Other facilities

564,495

630,786

Provision for share awards for directors (and other officers)

316

316Property, plant and equipment

Inactive facilities

89,283

125,501

1,495,927

1,569,373

5,320

6,018

Other intangible assets

290,316

Total intangible assets

295,637

Construction in progress
Total property, plant and equipment

Provision for safety measures
Provision for appliance warranties

—

84

3,172

3,427

349

637

10,843

—

—

2,620

Provision for point card certificates

1,635

531

294,296

Asset retirement obligations

23,313

27,692

300,315

Other noncurrent liabilities

89,188113,004

Total non-current liabilities

1,145,067

1,361,180

Provision for contract loss in regards to appliance warranties

Intangible assets
Goodwill

Provision for gas holder repairs

Investments and other assets
Investment securities

230,782

236,303

Long-term loans receivable

57,27948,653Current portion of non-current liabilities

108,704

49,248114

5,864

Notes and accounts payable-trade84,26576,22947,36844,230

Short-term borrowings

5,706

6,385

Other investments

60,814

100,916

Income taxes payable

11,71033,830(301)(1,647)

Other current liabilities

204,623

433,501

Allowance for doubtful accounts396,057

434,3222,187,623

2,304,011

Cash and deposits

157,881

179,769

Notes and accounts receivable-trade

218,985—

Total investments and other assets
Total non-current assets
Current assets—

330,540

Lease receivables and investments in leases

19,61817,824

Securities

1,210

10

Merchandise and finished goods

1,980

3,467

Work in process

11,59512,083

Raw materials and supplies

46,464

67,135

Other current assets

93,848305,814(857)(3,714)

550,725

912,9312,738,348

3,216,942

Notes and accounts receivable-trade, and contract assets

Allowance for doubtful accounts
Total current assets
Total assets

Corporate GovernanceBusiness Overview

Financial Data
10-Year Consolidated FinancialHighlights

Consolidated Balance Sheets
Consolidated Statements of Income /Consolidated Statements ofComprehensive Income

Current liabilities

Deferred tax assets

Retirement benefit asset

Information Disclosure Basedon TCFD Recommendations

415,010599,195

1,560,077

1,960,375

Share capital

141,844

141,844

Capital surplus

1,145

846

990,762

1,051,600

Total current liabilities
Total liabilities

Consolidated Statements of CashFlowsDelayed Impact of Gas Rate
Adjustment SystemNet assets
Shareholders’ equity

Retained earnings
Treasury shares
Total shareholders’ equity(3,907)(3,524)

1,129,845

1,190,767

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

22,99018,866

Deferred gains or losses on hedges(11,240)(11,904)

Foreign currency translation adjustment

4,322

32,545Remeasurements of defined benefit plans

7,895(3,076)

Total accumulated other comprehensive income

23,96836,430Investor Relations Website

24,45729,368

Total net assets

1,178,271

1,256,566

Investors’ Guide (Financial
Data and Industry Data)

Total liabilities and net assets

2,738,348

3,216,942

Non-controlling interests

Web Site

Financial Results
Presentation Materials
Financial Results Bulletin
Corporate Governance
ReportTokyo Gas Group Integrated Report 2022

67

Sustainability ReportContents

Consolidated Statements of Comprehensive Income

Consolidated Statements of Income
2020.4.1~2021.3.31

2021.4.1~2022.3.31

Net sales

1,765,146

2,145,197

ProfitCost of sales

1,212,624

1,546,590

Other comprehensive income

Gross profit

552,522598,607Selling, general and administrative expenses

2020.4.1~2021.3.31

2021.4.1~2022.3.31

50,471

90,276

7,178(4,178)Deferred gains or losses on hedges(10,014)(6,841)(14,869)

25,006

Valuation difference on available-for-sale securities

Supply and sales expenses

410,167

415,506

Foreign currency translation adjustment

General and administrative expenses

64,67965,323Remeasurements of defined benefit plans, net of tax

7,751(10,964)

Total selling, general and administrative expenses

474,846

480,829

77,675

117,777

Share of other comprehensive income of entities accounted forusing equity method(6,259)5,560

Total other comprehensive income(16,212)

8,583

34,25998,85933,480101,241778(2,381)

Operating profit
Non-operating income
Interest income

1,586

1,032

Comprehensive income

Dividend income

2,398

1,692

Comprehensive income attributable to

Share of profit of entities accounted for using equity method

1,482

3,725

Comprehensive income attributable to owners of parent

Foreign exchange gains

1,619

14,550Gain on derivatives

7,979

13,725Comprehensive income attributable to non-controllinginterests

—

6,817

Gain on sales of raw materials
Miscellaneous income

6,137

7,855

Total non-operating income

21,20449,399Interest expenses

12,62914,466

Loss on derivatives

9,373

11,864—

4,199

Introduction(Million yen)

(Million yen)CEO’s Message
How We Create Value
Compass2030
Invisible Assets
Information Disclosure Basedon TCFD Recommendations
Corporate GovernanceBusiness Overview

Financial Data
10-Year Consolidated Financial
Highlights
Consolidated Balance Sheets

Consolidated Statements ofIncome / Consolidated Statementsof Comprehensive Income
Consolidated Statements of Cash
FlowsNon-operating expenses

Fair value adjustment of contingent consideration
Miscellaneous expenses

6,376

9,913

Total non-operating expenses

28,37940,44470,500126,732

Gain on sale of non-current assets

3,114

2,226

Gain on sale of investment securities

5,283

4,118

Gain on bargain purchase

2,008

—

Total extraordinary income

10,406

6,344
3,742

Ordinary profit

Delayed Impact of Gas Rate
Adjustment System

Extraordinary income

Extraordinary losses
Impairment losses

10,255

Loss on valuation of investment securities

4,466

2,468

Total extraordinary losses

14,722

6,211

Profit before income taxes

66,184

126,865

Income taxes-current

16,88732,865

Income taxes-deferred(1,175)

3,724

Investor Relations Website

Total income taxes

15,71236,589Profit50,471

90,276

Investors’ Guide (Financial
Data and Industry Data)

966

1,530

Financial Results
Presentation Materials

49,50588,745

Financial Results Bulletin

Profit attributable to non-controlling interests
Profit attributable to owners of parent

Web Site

Corporate Governance
ReportTokyo Gas Group Integrated Report 2022

68

Sustainability ReportContents

Consolidated Statements of Cash Flows(Million yen)2020.4.1~2021.3.31 2021.4.1~2022.3.31

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Amortization of long-term prepaid expenses
Loss on retirement of property, plant and equipment
Loss (gain) on sale of non-current assets
Loss (gain) of derivatives
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on charge in the fair value of contingent consideration
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Increase (decrease) in provision for contract loss in regards toappliance warranties
Interest and dividend income
Interest expenses
Foreign exchange loss (gain)
Share of loss (profit) of entities accounted for using equity
methodDecrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Decrease (increase) in contract assets
Increase (decrease) in contract liabilities
Decrease (increase) in prepaid expenses
Increase (decrease) in long term advances received
Net decrease (increase) in lease receivables and investments in leases
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Proceeds from sale of securities
Purchase of investment securities
Proceeds from sale and redemption of investment securities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of long-term prepaid expenses
Proceeds from sale of non-current assets
Long-term loan advances
Proceeds from collection of long-term loans receivable
Payments of guarantee deposits
Proceeds from refund of guarantee deposits
Purchase of shares of subsidiaries resulting in change in scope ofconsolidation
Payments for acquisition of businesses
Other, net
Net cash provided by (used in) investing activities

2020.4.1~2021.3.31

126,865
196,810
3,742
4,136
2,574
(2,214)(15,362)(3,983)
2,468
4,199
4,202
(1,896)(11,312)—2,620(3,984)
12,629(4)(2,724)
14,466(7,757)

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents(1,482)(3,725)

Cash and cash equivalents at beginning of period(113,362)(22,491)
10,132
2,305(12,587)(2,796)
8,835
1,804(18,185)
166,766
9,068(14,483)(16,123)
145,227—(37,467)
16,573(172,652)(35,725)(2,456)
5,151(11,831)
4,037(6,957)
4,916

1,200
(16,214)8,841(167,197)(29,777)(6,584)
6,334(3,180)2,158(13,189)
9,846(32,579)(15,074)(25,208)(1,712)(295,911)(1,418)(399)(224,656)

2021.4.1~2022.3.31

CEO’s Message

Cash flows from financing activities

66,184
176,087
10,255
3,722
3,274(3,102)
1,393(5,283)
4,466—
186(2,918)(84)

5,126
18,643
8,080
—
—
41—
740
(1,127)
292,8447,843(12,630)(32,482)
255,574

Introduction(Million yen)

Net increase (decrease) in commercial paper—

Repayments of lease liabilities(2,414)(2,683)

Proceeds from long-term borrowings

51,035

165,014

Repayments of long-term borrowings(35,981)(123,252)

Proceeds from issuance of bonds

90,00073,620

Redemption of bondsPurchase of shares of subsidiaries not resulting in change inscope of consolidation
Proceeds from share issuance to non-controlling shareholders(20,000)(20,000)(2,275)(3,620)

—

2,654

(32)

(3,326)

Dividends paid

(26,449)(26,424)

Other, net(1,872)(1,490)Net cash provided by (used in) financing activities

52,00990,490(5,088)

9,117

6,584

20,179151,218

157,8118

1,708

157,811

179,699

Purchase of treasury shares

Increase (decrease) in cash and cash equivalents resulting fromchange in scope of consolidation
Cash and cash equivalents at end of period

How We Create Value

30,000Compass2030
Invisible Assets
Information Disclosure Basedon TCFD Recommendations
Corporate GovernanceBusiness Overview

Financial Data
10-Year Consolidated Financial
Highlights
Consolidated Balance Sheets
Consolidated Statements of Income /Consolidated Statements ofComprehensive Income

Consolidated Statements of Cash
Flows
Delayed Impact of Gas Rate
Adjustment System

Web Site

Investor Relations Website
Investors’ Guide (Financial
Data and Industry Data)
Financial Results
Presentation Materials
Financial Results Bulletin
Corporate Governance
ReportTokyo Gas Group Integrated Report 2022

69Sustainability ReportContentsIntroduction

Delayed Impact of Gas Rate Adjustment System

CEO’s Message
How We Create ValueGas Rate Adjustment System’s Medium- to Long-Term Neutralizing Effect on Crude Oil Price and Exchange Rate Formation
Gas prices are determined using the gas rate adjustment system. Through thissystem, average raw material prices over a three-month period according to trade
statistics are compared with the raw material cost that is used as the standard(standard average raw material cost), and the gas rates are adjusted using a defined
calculation method based on the differences. A time lag of four months on average(called a sliding time lag) exists between the payment of raw material costs and theCompass2030

reflection of such changes in gas rates.
Consequently, fluctuations in crude oil prices and exchange rates may result in theunder recovery or over recovery of raw material costs if this lag cuts across a fiscal
year, thereby affecting income. Looking at the medium- to long-term, however, thegas rate adjustment system has a neutralizing effect on the income impacts offluctuations in raw material costs.

Invisible Assets
Information Disclosure Basedon TCFD Recommendations
Corporate GovernanceBusiness Overview

Financial Data
10-Year Consolidated Financial
Highlights

Timing of the Standard Average Raw Material Cost Calculation and Reflection in Gas Rates

Consolidated Balance Sheets

How the Sliding Time Lag in Rates Works

Consolidated Statements of Income /Consolidated Statements ofComprehensive Income

Timing of standard average raw material cost calculation

Consolidated Statements of Cash
Flows

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Delayed Impact of Gas Rate
Adjustment SystemDec.

Average raw
material priceOver recovery

Under recovery

Average raw
material price

Average raw
material price

Average all Japan LNG price
Average raw material price reflected in gas rate

Reflection in gas rates

Jun.

Jul.

Aug.
Web Site

The average raw material price over the past three months is calculated every monthand then reflected in the gas rate three months later.

FY N

FY N+1

Investor Relations Website
Investors’ Guide (Financial
Data and Industry Data)
Financial Results
Presentation Materials
Financial Results Bulletin
Corporate Governance
ReportTokyo Gas Group Integrated Report 2022

70

Sustainability Report