Tokyo Gas Co., Ltd. is based in metropolitan Tokyo and the Kanto region, where demand for energy isgrowing strongly. As Japan’s largest gas company, Tokyo Gas serves approximately 9.2 million customers in a service area
covering 3,155 km2.
Progress in energy industry deregulation and expanding gas demand in metropolitan Tokyo are creating business
opportunities. With the aim of generating growth, the Tokyo Gas Group implemented a new medium-term management
plan, Frontier 2007, in April 2003. Under this plan, Tokyo Gas will work to meet the expectations of its customers andshareholders and increase corporate value as an “Energy Frontier Corporate Group” that achieves sustained growth throughbusinesses that supply energy and energy-related value-added products and services, centered on natural gas.

Financial Highlights
Tokyo Gas Co., Ltd. and Consolidated Subsidiaries
Years ended March 31

Thousands ofU.S. dollars except
per share amounts

Millions of yen
except per share amounts

2003

2002

2001

2003

¥1,127,634
123,294
59,201
137,300¥1,097,589
110,608
51,912
141,646¥1,086,771
103,659
27,595
146,420$9,396,950
1,027,453
493,343
1,144,165

110,188
107,164

104,291
112,675

109,899
111,208

918,233
893,033

21.18
19.11
70.4

18.47
16.66
68.9

9.82
9.13
61.9

0.18
0.16
0.59

At Year-End:Total assets ...............................................................................
Long-term debt due after one year.........................................
Total stockholders’ equity........................................................

¥1,676,064
598,322579,706¥1,702,713
680,887
564,078¥1,797,669
708,329552,790$13,967,204
4,986,017
4,830,886

Ratios:
Net income/Net sales................................................................
ROE ...........................................................................................
ROA ..........................................................................................
Equity ratio...............................................................................

5.3%
10.4%
3.5%
34.6%

4.7%
9.3%
3.0%
33.1%

2.5%
5.3%
1.5%
30.8%

For the Year:Net sales....................................................................................
Operating income ....................................................................
Net income ...............................................................................
Depreciation.............................................................................
Capital expenditures:
Accounting basis.................................................................
Payment basis .....................................................................
Amounts per share of common stock (Yen and U.S. dollars):
Net income (Basic) ..............................................................
Net income (Diluted) ..........................................................
Net income and depreciation.............................................

Note: U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥120=U.S.$1, the approximate Tokyo foreign exchange market rate as ofMarch 31, 2003.

Table of Contents
To Our Shareholders................................................................................ 1
An Interview with the President.............................................................. 2
The Right Place, The Right Time, The Right Plan..................................... 6
Research & Development: A Key to the Future ....................................... 20
Competitive Feedstock, Stable Supply and Safety Measures................... 21
Earth-Oriented Environmental Activities and Social Contribution ........... 22

Management........................................................................................... 24
Management’s Discussion and Analysis of Operations ........................... 25
11-Year Summary ................................................................................... 30Consolidated Financial Statements ......................................................... 32
Organization ........................................................................................... 47
Investor Information ............................................................................... 48

Forward-Looking Statements
Statements made in this annual report with respect to Tokyo Gas’s plans, strategies and beliefs, and other statements that are not expressions of fact are forward-looking statements about
the future performance of the company. As such, they are based on management’s assumptions and opinions stemming from currently available information, and therefore involve risks anduncertainties, These risks and uncertainties include, without limitation, general economic conditions in Japan, the exchange rate between the yen and the U.S. dollar, and Tokyo Gas’s ability
to continue to adapt to rapid technological developments and deregulation.

Financial Data and Graphs
For purposes of presentation in this annual report, all amounts less than one billion yen or one million yen, and hundredths of a percentage point, have been rounded to the nearest wholenumber. In addition, all graphs represent fiscal years ended March 31 of the respective years.