LNG value chain

TOKYO GAS INTEGRATED REPORT 2020

12Transformation of the LNG value chain for value creation
We will crystallize the business expertise that has been accumulated
in trading, production and power generation, networks and customer
solutions and explore new domains in order to expand the customer
base for whom value is created and provided and maximize each of
the functions of the LNG value chain.
ConventionallyElectricity

Procurement
and production

Supply (pipeline)

Provisionof value

City gas retailServicesTokyo Gas Group'sstrengths

Customersolutions

Participation bybusiness partners

Trading
Transformation ofthe LNG value chain
Production andpower generation

Networks

Customer base
11 million
customers

The Tokyo
metropolitan area

Human resourcesHighdemandSincerity

A sense of mission Technologicalto serve publiccapabilities
interests

Financialstanding

Customer solutions

Trading

We will crystallize our front-line operations andservices for customers, including equipment
installation and repair services carried out byLifeval, which deals with last mile services. In
addition, we will increase our use of digital
infrastructure and business partners and expand
the amount of data, products and technologies
used to discover issues and swiftly propose a wide
range of solutions matched with the customer.

We will optimally operate LNG terminals and our own
ships and other equipment using digital technologies
to improve stability, economic efficiency and flexibility
in raw material procurement. Taking advantage offlexibility based on the scale of LNG and electricity
power procurement, our own power plants andelectric power and gas retail businesses and mutually
utilizing the strengths and regional differences ofbusiness partners, we will increase added value ofLNG and explore earning opportunities throughtransactions on and off the market.

Community-based

Contact opportunities

Number of Lifeval
outlets*Repairs, etc. andperiodic safety
inspections*(as of the end of March 2020)* Including Enesta and Enefit
outlets

5.2 million(actual for FY2019)* Including Enesta and Enefit* Repairs, etc. include
opening/closing of gas
fixtures.

Communitybased

Procurement
capabilities

Number of vessels
under ourownership orcontrol

12Storage capacity

LNG Terminals

3.47

million kiloliters(as of the end of March 2020)(as of the end of March 2020)

Networks

Production and power generation

We will streamline pipeline maintenance andmanagement operations, achieve the opening of theIbaraki Line in 2020 to create a second circular trunk
pipeline network, build closer ties with local
governments and infrastructure operators to makethe natural gas infrastructure in the Greater Tokyo
region more resilient. In addition, we will explore
new services using smart meters.

We will digitalize the facility management of LNG
terminals and introduce the real-time remotemonitoring of production and other processes toadvance operations. Leveraging the expertise inengineering and the operation of LNG terminals
and power plants that we have developed, we
will explore expansion in Japan and overseas andbusinesses for other operators.

Stable supply

SafetyTotal pipeline
lengthNumber of serious
supply disruption
incidents

64,545km(as of the end of March 2020)0(actual for FY2019)

TrustHistory

We will capitalize on the strengths of the Tokyo Gas Group and continue to create
various types of value through the participation of business partners and customers.

174

Goal for 2030
Participation bycustomers

Strengths

Natural gas-fired
power plants

Operation

Number of power
plants owned

Monitoring andcontrol5(as of the end of March 2020)

On a24/7basis

LNG value chain

TOKYO GAS INTEGRATED REPORT 2020

13

Creating and offering various typesof value in Japan and abroadBusinesses

Residences

The Community

The conventional LNG value chain was based on a business model of offering LNG withincreased value in different functions to customers through the retail end-point. However,in view of the trend towards decarbonization, digitalization, the diversification of customers’values, progress in energy market deregulation, other changes in market conditions andintensifying competition, we will maximize the value of the individual functions of the LNG
value chain in a shift toward a business model of creating and providing various types ofvalue through separate functions for customers.

OUTCOME(indicators)

Achieve peace of mind

Contribution to thepreservation of theglobal environment

Reduction of thecost of energy

Create comfortablelives

As a leading company dealing in natural gas, we will contribute to the preservation of the global environment, continuously endeavor toreduce the cost of energy and create secure and comfortable lives for customers.
Targets in Medium-Term
Management Plan

Management vision: Management guidelines and key figures
Contribution to CO2emissions reduction-10 million tons

Number of customer
accounts

20 million

Natural gas transaction
volume20 million tons

Profit*Total payout ratio

200 billion

aroundApprox. ¥*The sum of operating profit and equity method income

ROE

60% around 8%