Segment Information>>

Gas Sales
Tokyo Gas produces city gas atthree terminals, using LNG as the

Share of Total Net SalesSales (¥billion)

Tokyo Gas installs service pipes andOperating Income (¥billion)

gas cocks on the properties of new

65.6%
1,000

main resource, supplying it to over

200

910.3
831.1

9.8 million customers primarily in189.4

182.7

834.7

Related Construction
4.3%
1.6%

customers, as well as adding gas

160.0

the Kanto region through aconstitute 93.3% of this segment’s sales.]

10000

Share of Operating Income ’04’05

’06

’04

’05

’06

● In volume terms, gas sales increased by 7.1% year on year to 13,098 million m3.

was completed and began operation.

● Sales volumes exceeded the previous year’s levels in all sectors. There wereincreases of 6.9% in the residential sector and 6.3% in the industrial sector,
while sales to the commercial sector was 3.9% higher. Wholesaling to other gas
companies increased by 18.6%.

demand is expected, while maintaining a steady supply.
[Sales excluding intra-group transactions
constitute 98.7% of this segment’s sales.]

’04

’05

’06

87.6%

In November 2005, the Tochigi Lineservice area into areas where high’06● There were declines in the number of new installations and safety upgrades.
Segment sales fell by 7.8% year on year to ¥59.7 billion, and operating
income by 16.8% to ¥3.0 billion.

extending pipelines to expand theTokyo Gas also plans to extend its

’05

50
200

strong potential for demand growth.

3.6

220

[Sales excluding intra-group transactions

100

4.5

43.0

’04

northern Kanto region, which offers

59.740buildings of existing customer sites.

supply capability, and are proactively
customer base, focusing on the64.83600400

Operating Income (¥billion)
568.0
60150

We have Japan’s largest gas

80cocks and other equipment at

80051,530-km pipeline network.

Sales (¥billion)>

Real Estate Rental
A subsidiary, Tokyo Gas Urban● Despite the impact of rate revision implemented in January 2005, net sales
increased by 9.1% year on year to ¥910.3 billion. This reflects a rise in unit
prices made under the “gas rate adjustment system,” combined with the expansion of sales volumes.

Development Co., Ltd., is primarily● Operating income declined 12.4% to ¥160.0 billion owing to a sharp increase ingas resource costs resulting from rising crude oil prices.

2.5%
3.0%

Sales (¥billion)
40

35.4

responsible for activities in thisOperating Income (¥billion)
8

34.7

7.9

34.2

6.5

30

6

manages office buildings, including20

4the Shinjuku Park Tower.

102[Sales excluding intra-group transactions

05.5

segment. The company leases and’04

’05

’06

0’04

’05

’06

constitute 32.3% of this segment’s sales.]>● Rent reductions caused segment sales to decline by 1.5% to ¥34.2 billion.
Operating expenses were higher, in part because of expenditure on building
renovation, with the result that operating income decreased by 16.1% to¥5.5 billion.

Gas Appliance Sales
This segment is involved in the salesof gas appliances bought from

9.4%
2.5%

Sales (¥billion)
150

manufacturers, including gas

120

cooktops, water heaters and TES

90(Tokyo Gas Eco System), which use

60

hot water heated by gas to provide

30

space heating and other home com-0forts, through about 320 outlets ofEnesta and Enefit, service networksof Tokyo Gas.
[Sales excluding intra-group transactions
constitute 98.1% of this segment’s sales.]Notes: 1) Segment sales include intra-group transactions.
2) All graph data for years ended March 31.

133.9

135.1 130.8

Operating Income (¥billion)
8

7.9
7.1

>

6

Other Businesses

4.6
4Business activities in this segment2

include district heating/cooling,
0’04

’05

’06

’04

’05

’06

● Sales of high-value-added appliances remained strong. However, selling prices wereeroded by escalating competition and other factors, with the result that segmentsales decreased 3.2% to ¥130.8 billion.
● Investment in demand development to counter the “all-electric” promotion resulted
in a 34.5% decrease in operating income to ¥4.6 billion.

18.2%
5.3%

Sales (¥billion)300

15energy services, LPG sales, industrial
gas sales, credit leases, system

234.7
200

Operating Income (¥billion)
13.4

252.6
11.3

9.6

10172.1

integration and general engineering.
1005[Sales excluding intra-group transactions
constitute 68.4% of this segment’s sales.]
0’04

’05

’06

0’04

’05’06● There was healthy growth in the on-site energy service business. Other positive
factors included increased operation of LNG vessels managed by Tokyo LNG
Tanker Co., Ltd. Segment sales increased 7.6% to ¥252.6 billion.
● Operating income declined by 28.1% year on year to ¥9.6 billion. Reasons
included an increase in the initial depreciation costs associated with the onsite energy service business.

0607