Nippon Gas : Consolidated Financial Results for the Fiscal Year Ended March 31, 2021

Consolidated Financial Results

for the Fiscal Year Ended March 31, 2021

[Japanese GAAP]

April 27, 2021

Company name: NIPPON GAS CO., LTD.

Code number: 8174

URL: http://www.nichigas.co.jp/

Stock exchange listing: Tokyo Stock Exchange

Representative: Wada Shinji, President and Representative Director

Contact: Kiyota Shinichi, Executive Officer in charge of IR Department and Financial Department, Corporate Headquarters

Phone: [phone]

Scheduled date of Ordinary General Meeting of Shareholders: June 24, 2021

Scheduled date of commencing dividend payments: June 25, 2021

Scheduled date of filing securities report: June 24, 2021

Availability of supplementary briefing material on financial results: Available

Schedule of financial results briefing session: Scheduled (for institutional investors)

(Amounts are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 to March 31, 2021)

(1) Consolidated Results of Operations

(% indicates changes from the previous corresponding period.)

Net sales

Operating income

Ordinary income

Profit attributable to

owners of parent

Fiscal Year ended

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

143,490

8.3

13,627

18.3

14,062

31.6

9,373

21.1

Mar. 31, 2021

Fiscal Year ended

132,496

8.1

11,519

29.0

10,682

44.8

7,742

78.9

Mar. 31, 2020

(Note) Comprehensive

income: Fiscal year ended Mar. 31, 2021

¥

9,590 million [25.4%]

Fiscal year ended Mar. 31, 2020

¥7,646 million [123.6%]

Basic earnings

Diluted earnings

Rate of return

Ordinary

Operating

income to total

income to net

per share

per share

on equity

assets

sales

Fiscal year ended

Yen

Yen

%

%

%

78.94

―

13.6

10.3

9.5

Mar. 31, 2021

Fiscal year ended

63.33

―

11.3

7.8

8.7

Mar. 31, 2020

(Reference) Equity in

earnings (losses) of

affiliates:

Fiscal year ended Mar.

31, 2021

¥―

million

Fiscal year ended Mar. 31, 2020

¥(354) million

(Note)

The Company conducted a 3-for-1 stock split on April 1, 2021. "Basic earnings per share" is calculated on the assumption

that the stock split was implemented at the beginning of the previous fiscal year.

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

As of Mar. 31, 2021

140,120

69,342

49.5

592.64

As of Mar. 31, 2020

132,521

68,355

51.6

570.88

(Reference) Equity:

As of Mar. 31, 2021 ¥69,338 million

As of Mar. 31, 2020 ¥68,350 million

(Note)

The Company conducted a 3-for-1 stock split on April 1, 2021. "Net assets per share" is calculated on the assumption that

the stock split was implemented at the beginning of the previous fiscal year.

(3) Consolidated Cash Flows

Net cash provided

Net cash provided by

Net cash provided

Cash and cash

by (used in)

(used in) investing

by (used in)

equivalents at end of

operating activities

activities

financing activities

period

Fiscal year ended

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

16,068

(14,513)

(5,706)

12,411

Mar. 31, 2021

Fiscal year ended

15,975

4,679

(22,330)

16,528

Mar. 31, 2020

2. Dividends

Annual dividends

Total

Dividend to

dividends

Payout ratio

net assets

End of

End of End of

Year-

Total

paid

(consolidated)

(consolidated)

1Q

2Q

3Q

end

(annual)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

Fiscal year ended

35.00

35.00

70.00

2,842

36.9

4.1

Mar. 31, 2020

Fiscal year ended

62.50

62.50

125.00

4,977

52.8

7.2

Mar. 31, 2021

Fiscal year ending

Mar. 31, 2022

25.00

25.00

50.00

58.5

(Forecast)

(Note) The Company conducted a 3-for-1 stock split on April 1, 2021. Dividends before the stock split are shown for the fiscal year ended March 31, 2020 and the fiscal year ended March 31, 2021. The interim and year-end dividends for the fiscal year ending March 31, 2022 (Forecast) are stated after taking into account the effect of the stock split.

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

(% indicates changes from the previous corresponding period.)

								Profit attributable	Basic
		Net sales		Operating income	Ordinary income	earnings
			to owners of parent
								per share
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%		Millions of yen	%	Yen
64,000	4.0	2,800	（25.2）	2,900	(26.8)	1,900	(29.5)	16.24
Sep. 30, 2021
Full-year		150,000	4.2	14,500	6.4	14,600	3.8	10,000	6.7	85.47
(Note１)	Due to the	adoption of new accounting standards regarding revenue recognition from	the fiscal year ending March 31,
	2022, the sales of LP gas and electricity are recorded based on sales estimation between	the meter reading and the
	settlement of accounts.
(Note2)	The Company conducted a 3-for-1 stock split on April 1, 2021. Basic earnings per share for the consolidated financial
	results forecast for the fiscal year ending March 31, 2022 are stated after taking into account the effect of the stock split.

4. Notes

1. Significant changes of subsidiaries during the year under review (changes in specified subsidiaries resulting in changes in scope of consolidation during the year under review): No
2. Changes to accounting policies, changes to accounting estimates, and revision restatements
3. 1. Changes to accounting policies accompanying the revision of accounting standards, etc.: No
   2. Changes to accounting policies other than 1) above: No
   3. Changes to accounting estimates: No
   4. Revision restatements: No

(3) Total number of issued shares (common shares)

1) Total number of issued shares (including treasury shares):

	Mar. 31, 2021		120,591,498 shares
2)	Mar. 31, 2020		125,320,398 shares
Total number of treasury shares at the end of the period:
	Mar. 31, 2021		3,592,506 shares
3)	Mar. 31, 2020		5,591,940 shares
Average number of shares during the period:
	Fiscal year ended Mar. 31, 2021	118,739,763 shares
	Fiscal year ended Mar. 31, 2020	122,272,326 shares

(Note1)The Company conducted a 3-for-1 stock split on April 1, 2021. "Total number of issued shares," "Total number of treasury shares at the end of the period" and "Average number of shares during the period" are calculated on the assumption that the stock split was implemented at the beginning of the previous fiscal year.

(Note2) The number of treasury shares includes the shares of the Company held by the "Directors' Compensation BIP (Board Incentive Plan) Trust" (As of March 31, 2021: 1,474,194 shares, as of March 31, 2020: 721,494 shares).

(Reference) Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 to March 31, 2021)

(1) Non-consolidated Results of Operations	(% indicates changes from the previous corresponding period.)
		Net sales	Operating income		Ordinary income		Profit
Fiscal year ended	Millions of yen	%	Millions of yen	%		Millions of yen	%		Millions of yen	%
110,853	9.0	8,808	18.5	10,538	24.4	7,762	38.0
Mar. 31, 2021
Fiscal year ended	101,706	10.7	7,435	45.1	8,472	62.4	5,624	72.2
Mar. 31, 2020
		Basic earnings	Diluted earnings
		per share	per share
Fiscal year ended		Yen		Yen
	65.37		－
Mar. 31, 2021
Fiscal year ended		46.00		－
Mar. 31, 2020
(Note)	The Company	conducted a 3-for-1 stock	split on April 1, 2021. "Basic earnings per share" is calculated on the assumption
	that the stock split was implemented at the beginning of the previous fiscal year.
(2) Non-consolidated Financial Position
		Total assets	Net assets		Equity ratio		Net assets per share
		Millions of yen	Millions of yen			%			Yen
As of Mar. 31, 2021		115,486		43,573			37.7			372.43
As of Mar. 31, 2020		106,354		44,190			41.5			369.09
(Reference) Equity:	As of Mar. 31, 2021 ¥43,573 million	As of Mar. 31, 2020 ¥44,190 million
(Note)	The Company conducted a 3-for-1 stock split on April 1, 2021. "Net assets per share" is calculated on the assumption that
	the stock split was implemented at the beginning of the previous fiscal year.

• These financial results are outside the scope of audit by a certified public accountant or an audit corporation.
• Explanation of the proper use of performance forecast and other notes
  The earnings forecasts and other forward-looking statements herein are based on information available to the Company and certain assumptions deemed reasonable as of the date of publication of this document. Actual results may differ significantly from these forecasts due to a wide range of factors. Please refer to "Overview of Operation Results, etc." on page 2 of the attached Appendix for the notes on the use of preconditions for the earnings forecast and the use of the earnings forecast.

Contents of Appendix
1. Overview of Operation Results, etc. --------------------------------------------------------------------------------------	2
(1)	Overview of Operation Results for the Fiscal Year Under Review ------------------------------------------------	2
(2)	Overview of Financial Position for the Fiscal Year Under Review -----------------------------------------------	6
(3)	Overview of Cash Flows for the Fiscal Year Under Review -------------------------------------------------------	6
(4)	Future Outlook ------------------------------------------------------------------------------------------------------------	7
2. Basic Approach to the Selection of Accounting Standards -------------------------------------------------------------	7
3. Consolidated Financial Statements and Primary Notes -----------------------------------------------------------------	8
(1)	Consolidated Balance Sheet ---------------------------------------------------------------------------------------------	8
(2)	Consolidated Statement of Income and Comprehensive Income -------------------------------------------------	10
(3)	Consolidated Statement of Changes in Equity ----------------------------------------------------------------------	13
(4)	Consolidated Statement of Cash Flows ------------------------------------------------------------------------------	15
(5)	Notes to Consolidated Financial Statements ------------------------------------------------------------------------	17
	(Notes on Going Concern Assumption) -------------------------------------------------------------------------	17
	(Segment Information, etc.) ---------------------------------------------------------------------------------------	17
	(Per Share	Information) --------------------------------------------------------------------------------------------	19
	(Significant	Subsequent Events) ---------------------------------------------------------------------------------	20
4. Non-consolidated Financial Statements and Primary Notes ----------------------------------------------------------	22
(1)	Balance Sheet	------------------------------------------------------------------------------------------------------------	22
(2)	Statement of Income ----------------------------------------------------------------------------------------------------	25
(3)	Statement of Changes in Equity --------------------------------------------------------------------------------------	27
5. Others-------------------------------------------------------------------------------------------------------------------------	31
(1)	Production, Order and Sales Status -----------------------------------------------------------------------------------	31
(2)	Changes to the Officers of the Company ----------------------------------------------------------------------------	32
(3)	Trends in the Number of Houses, etc. --------------------------------------------------------------------------------	33

- 1 -

1. Overview of Operation Results, etc.

1. Overview of Operation Results for the Fiscal Year Under Review
   During the current fiscal year, economic activities were restrained by the global spread of the novel coronavirus disease (COVID-19). Although economic activities showed some signs of recovery, the situation remained unpredictable with the number of infections beginning to rise again. Meanwhile, recent changes in the way people live, called the new normal, such as prevalence of remote learning and telework, brought about an unprecedented acceleration of digital transformation (DX) in Japan. We are in the midst of a pivotal moment in history, and the energy industry is also required to redefine its business at an unprecedented speed.
   The spread of COVID-19 has made steadier the global trend of emphasizing Sustainable Development Goals (SDGs) and Environment, Society and Governance (ESG) in corporate management, the redefinition of the social system, and realizing a co-creative society. At the same time, the spread of the disease has placed pressure on companies to shift to carbon-free management in order to combat global warming, which, like COVID-19, will have an impact on humanity on the global scale.
   The Company has a policy of solving new social issues using digital innovation and enhancing corporate value over the medium to long term, and is also actively working on SDGs and ESG initiatives. The Company also recognizes that creating carbon-free societies is an important task to achieve sustainability of the Earth. In its Integrated Report 2020, the Company announced a CO2 emissions reduction plan. Our goals are to achieve a roughly 50% reduction in the energy industry's CO2 emissions by having industry members use its LPG wheeling services and to cut CO2 emissions per household by roughly 50% by promoting the procurement of electricity from non-fossil fuel sources and the widespread adoption of energy-saving gas equipment. Furthermore, the Company is working to achieve net zero CO2 emissions by 2050.
   On March 16, 2021, the Company finally began operation at "Yume no Kizuna Kawasaki" (Yume no Kizuna), an LP gas hub filling plant, which will serve as a foundation for new collaboration within the LP gas industry. The filling plant, one of the world's largest automated LP gas filling stations, which incorporates DX technologies and cutting-edge technologies, operates in coordination with operators in other industries, including those in other countries. Yume no Kizuna is a "co-creation platform" that uses big data and open innovation to create new value for society. The Company positions it as a platform for achieving SDG 16, "Peace, Justice, and Strong Institutions," and SDG 17, "Partnerships for the Goals."
   Yume no Kizuna uses high-performance cameras with proprietary algorithms and biometric authentication security gates and all information of vehicles, people and containers are automatically identified and recorded as data. This data will be linked with gas consumption data sent by "Space Hotaru," an automatic meter-reading devices installed in customer homes and container inventory data from logistics bases and analyzed using AI to calculate optimal manufacturing (filling) plans. Filling plants, logistics bases, "Space Hotaru," and the "Kumo no Uchusen" operation system will work together to integrate data in real-time, making it possible to completely visualize all traceability. This will produce a logistics system that offers an even higher level of efficiency.
   The Company will not only utilize Yume no Kizuna for its own use, but also provide it to other operators as an LP gas platform to start an "LPG Wheeling Service." This service was made possible by creating a fair and equitable system that uses the latest technologies to reliably protect the security of data provided by other operators. The users of this service will be able to operate their businesses through the use of the Company's
2. • 2 -

proprietary highly efficient systems for filling and wheeling to conduct business without the need to possess their own facilities or personnel. The Company will receive fees from operators for the use of this platform, creating a new means of revenue generation. In the LP gas business, the Company will achieve SDG 16, "Peace, Justice, and Strong Institutions," by democratizing information through the use of technology and through its alliances with other companies, the Company will also seek to achieve SDG 17, "Partnerships for the Goals," aiming to realize new co-creative values.

As an energy business operator who supports local communities, precisely during the COVID-19 pandemic, it is necessary that the Company meets the needs and requests of customers and that our staff is able to make real- time and quick responses. Therefore, the Company will promote DX through the in-house development of digital HR whenever possible for operations that do not require the human intervention, and deploy these HR in various stages of operations, in order to assign more human resources to operations best handled by people. For example, in Yume no Kizuna, the power of DX has been used to automate logistics, which used to be the most expensive and labor-intensive part of the industry, to reduce human intervention to the utmost limit, and as a result, we have succeeded in increasing cost competitiveness to an unprecedented level. The Company recognizes that if it lags behind in cost reduction efforts, it could be left behind in competition among energy operators in the quest to create carbon neutral societies. This recognition is one of the contributing factors to the realization of the Yume no Kizuna co-creation environment.

These projects with full use of leading edge technologies are a challenge based on the recognition that sharing private data owned by individuals on a platform with ensured privacy is a prerequisite for co-creation, in anticipation of the coming data-driven society. Instead of using big data, which is common property of society, for the benefit of an individual company, the Company will share the big data and collaborate with the entire energy industry regardless of whether they are partners or competitors, break away from the "in-house development principle," and strive to contribute to local communities through partnership. The Company will face diversifying issues of local communities, accelerate the speed of sustainable growth as a company, and continue to strive to achieve real liberalization of energy, by using the fruits of its efforts in ICT as a resource for co-creation with other suppliers rather than using them to differentiate itself from (or compete with) other suppliers.

While promoting business innovation and DX, the Company continued to invest management resources in the LP gas business, positioned as a top priority business for the current fiscal year. Currently we are also actively performing non-face-to-face new marketing activities using digital technology in keeping with the needs of the "with-COVID-19" era. In addition, business integration in the industry is becoming very active. Our activities responding to this trend have steadily borne fruit in the form of an increase in the number of customers. The electric power business has steadily expanded business profitably, with a growing number of customers using the package service with gas, centering on the family segment that matches the product characteristics of this business. In the future, while basing our business on package sales of electricity and gas, we will work to expand and enhance our customer base. Our joint efforts with players in other industries to create a sharing economy have proven successful. Among those efforts are package sales of gas and electricity and the Plus Plans, under which many companies of other industries sell their products to households in the communities of

- 3 -

our customers. We recognize that our new platform business has gained steady momentum. We will further drive innovation and work to create even greater corporate value.

In quantitative terms, gross profit increased by ¥4,426 million or 7.0% year on year to ¥67,791 million, operating income increased by ¥2,108 million or 18.3% year on year to ¥13,627 million, and profit attributable to owners of parent increased by ¥1,630 million or 21.1% year on year to ¥9,373 million, resulting in a significant increase in every level of profit. The increase in gross profit resulted from an increase in the sales volume of gas for household use and the steady expansion of the customer base of the electricity business. The sales volume of gas for household use was boosted by both a rise in the number of customers and an increase in the amount of time spent at home. While the number of customers in the electricity business increased by 123,000, we maintained a stable supply of power and a stable profit margin, without being affected by sudden rises in electricity spot pricing during the New Year's period, and our profit grew significantly. Furthermore, we have also focused on controlling selling, general and administrative expenses and successfully lowered the increase in selling, general and administrative expenses (approx. +¥2,318 million) to roughly half of the increase in gross profit (approx. +¥4,426 million), improving profit at the operating income stage as well.

Business performance by segment is as follows:

[LP Gas Business (including platform business as well as LP equipment and construction as ancillary business)] Gross profit from the LP gas business segment amounted to ¥40,763 million (up by ¥2,225 million year on year) from the LP gas business and ¥3,585 million (up by ¥739 million year on year) from the ancillary business.

Despite the decrease in sales of gas for commercial use as a result of the COVID-19 pandemic, gross profit from the LP gas business increased as a result of a rise in the number of customers, in addition to an increase in the amount of time spent at home during state of emergency periods, and temperatures in winter being below those of the same period of the previous fiscal year, which resulted in an increase in the sales volume of gas for household use (7.2% year on year). During the fiscal year under review, the Company increased the number of customers by 40,400 households, exceeding the annual target of 40,000 households, due to active business area purchasing during the first half of the year and the steady acquisition of customers.

The increase in gross profit from the ancillary business came from an increase in gross profit from the platform business (up by ¥210 million year on year). This was due to both an increase in the number of companies using our platform and an increase in the number of customers of platform users. "Tanomimaster," our digital order system for gas equipment, also contributed to profit on a certain level. In the next fiscal year, external sales of "Space Hotaru," which brings gas meters online, will start and monetization is planned.

- 4 -

	Previous fiscal year	Current fiscal year	Change	Change (%)
Gross profit (millions of yen)
Gas	38,537	40,763	2,225	5.8%
Equipment, construction, platform, etc.	2,846	3,585	739	26.0%
No. of customers (1,000 customers)
	877	918	41	4.7%
Gas sales volume (1,000 tons)
Household use	181	194	13	7.2%
Commercial use	129	117	(12)	(9.3)%

[Electricity Business]

Gross profit from the electricity business segment rose significantly to ¥1,608 million (up by ¥1,166 million year on year). The increase in gross profit from electricity business was due to the steady expansion of our customer base, mainly existing gas users, and the procurement of electricity at steady prices. The number of customers rose by 123,000 households during the fiscal year under review, exceeding the annual target of 120,000 households, and the percentage of customers of package service of gas and electricity rose from 6.4% at the end of the previous fiscal year to 13.7% at the end of the fiscal year under review. The primary reason for the stable electricity procurement price was the expansive partnership between the Company and the TEPCO Group, which allowed us to purchase electricity without going through the wholesale market. During the fiscal year under review, there was a surge in market prices of electricity, but we were able to procure electricity at stable prices to maintain profits.

	Previous fiscal year	Current fiscal year	Change	Change (%)
Gross profit (millions of yen)	442	1,608	1,166	263.8%
No. of customers (1,000 customers)	101	224	123	121.8%
Electricity sales volume (GWh)	215	774	559	260.0%

[City Gas Business (including city gas equipment and construction as ancillary business)]

Gross profit from the city gas business segment amounted to ¥20,645 million (up by ¥359 million year on year) from the city gas business and ¥1,189 million (down by ¥64 million year on year) from the ancillary business. The increase in gross profit from the city gas business is owing to an increase in the sales volume of household gas (up by 6.3% year on year) that surpassed the effect of a decrease in the sales volume of commercial use gas (down by 8.5% year on year) due to the impact of COVID-19 as in the case of the LP gas business. The number of customers increased by 26,000 households, versus the target increase of 30,000 customers. This was because the city gas business concentrated on increasing the number of new contracts with a focus on profitability, such as customers who are expected to set up electricity bundle and long-term contracts, customers in households that use large amounts of gas, and the like. We will maintain our current policy and increase our profitability while expanding our customer base.

- 5 -

	Previous fiscal year	Current fiscal year	Change	Change (%)
Gross profit (millions of yen)
Gas	20,286	20,645	359	1.8%
Equipment, construction contracts, etc.	1,253	1,189	(64)	(5.1)%
No. of customers (1,000 customers)
Existing city gas	413	417	4	1.0%
New city gas	280	302	22	7.9%
Gas sales volume (1,000 tons)
Household use	174	185	11	6.3%
Commercial use	223	204	(19)	(8.5)%

1. Overview of Financial Position for the Fiscal Year Under Review
   The Company recognizes that enhancing the performance of shareholders' equity is the purpose of balance sheet control. Under this purpose, while taking into consideration the total size of assets, we strengthen profitability by increasing the ratio of highly profitable assets (LP gas and ICT) to total assets. In raising capital, while maintaining a high level of shareholder returns, we control equity ratio to the appropriate level by effectively utilizing borrowings, not retaining unnecessary shareholders' equity. As a result of continuing these policies, shareholders' equity has remained almost constant while profit has increased, and the performance of shareholders' equity, that is ROE, has improved every year, and reached 13.6% at the end of the fiscal year under review from 11.3% at the end of the previous fiscal year.
   As to specific changes, total assets as of the end of the fiscal year under review increased by ¥7,599 million or 5.7% from the end of the previous fiscal year and stood at ¥140,120 million. The increase in total assets is due to an increase in property, plant and equipment associated with the completion of construction of Yume no Kizuna, the installation of Space Hotaru, and investment for customer acquisition. Total liabilities as of the end of the fiscal year under review increased by ¥6,612 million, or 10.3%, from the end of the previous fiscal year to ¥70,778 million. Net assets as of the end of the fiscal year under review increased by ¥987 million, or 1.4%, from the end of the previous fiscal year and stood at ¥69,342 million. In other words, the increase in assets was mostly funded by the increase in liabilities. The increase in total liabilities is attributable to an increase in short- term and long-term loans payables in addition to an increase in lease obligations associated with Space Hotaru. As a result of net profits being higher than initial forecast, net assets partially exceeded shareholder returns through payment of dividends and purchase of treasury shares and the equity ratio is being maintained at 49.5%.
2. Overview of Cash Flows for the Fiscal Year Under Review
   Balance of cash and cash equivalents as of the end of the current fiscal year decreased by ¥4,117 million from the end of the previous fiscal year to ¥12,411 million.
3. • 6 -

(Net cash provided by (used in) operating activities)

Net cash provided by operating activities amounted to ¥16,068 million, up by ¥92 million year on year. This was mainly due to an increase in profit before income taxes (up by ¥3,106 million year on year), which surpassed an increase in income taxes paid (up by ¥2,492 million).

(Net cash provided by (used in) investing activities)

Net cash used in investing activities amounted to ¥14,513 million, up by ¥4,679 million year on year. This was mainly due to an increase in investments in property, plant and equipment such as "Yume no Kizuna Kawasaki" (up by ¥3,013 million year on year).

(Net cash provided by (used in) financing activities)

Net cash used in financing activities amounted to ¥5,706 million, (down by ¥16,623 million year on year). The decrease in cash outflow was mainly due to a decrease in short-term and long-term loans payables year on year.

1. Future Outlook
   For the fiscal year ending March 31, 2022, the Company forecasts increases in all the stages of gross profit, operating income, ordinary income, and profit attributable to owners of parent. For profit in particular, the Company aims to record profit exceeding ¥10.0 billion for the first time since its founding. Household gas sales volume is calculated by using average usage amounts reflecting the temperature forecasts for the year ending March 31, 2022, and under the assumption that they will not be boosted by low temperatures. Costs are set at CP of 470$/t for the first half of the year and530$/t for the second half of the year, reflecting recent high material prices, and exchange rate forecasts are set more conservatively than recent exchange rates (¥112 for the first half of the year and ¥114 yen for the second half of the year). The Company plans to expand its customer base, and targets an increase of 40,000 customers in the LP gas business, 120,000 customers in the electricity business, and 30,000 customers in the city gas business.
   For details of the profit plans for the fiscal year ending March 31, 2022, please see the "Financial Results Briefing Materials for F Y Ending in March 2021" released today.

2. Basic Approach to the Selection of Accounting Standards

The Group adopts Japanese GAAP. As to the policy of adoption of IFRS, the Company shall comply appropriately, taking into account various conditions in Japan and overseas.

- 7 -

3. Consolidated Financial Statements and Primary Notes

(1) Consolidated Balance Sheet

								(Millions of yen)
Account			Fiscal year ended Mar. 31, 2020	Fiscal year ended Mar. 31, 2021
		(As of Mar. 31, 2020)	(As of Mar. 31, 2021)
Assets
Current assets
Cash and deposits	16,589		12,453
Notes and accounts receivable - trade					11,026				14,996
Merchandise and finished goods					4,830				5,449
Raw materials and supplies	182		145
Other					2,125				1,925
Allowance for doubtful accounts	(222)	(204)
Total current assets					34,532				34,764
Non-current assets
Property, plant and equipment
Buildings and structures	23,737		30,911
Accumulated depreciation	(14,292)	(15,251)
Buildings and structures, net			9,445		15,659
Machinery, equipment and vehicles	208,827		245,727
Accumulated depreciation		(176,387)	(212,565)
Machinery, equipment and vehicles, net	32,439		33,161
Tools, furniture and fixtures			4,215		4,649
Accumulated depreciation	(3,317)	(3,765)
Tools, furniture and fixtures, net			898		883
Land	29,875		30,197
Leased assets					5,876				8,249
Accumulated depreciation					(3,479)				(3,383)
Leased assets, net			2,397		4,866
Construction in progress	3,982		1,019
Total property, plant and equipment			79,038		85,786
Intangible assets
Goodwill	3,017		4,133
Other					4,204				4,220
Total intangible assets			7,222		8,354
Investments and other assets
Investment securities	2,399		2,169
Long-term loans receivable					3,459				3,691
Deferred tax assets	8,192		7,900
Other	2,396		2,389
Allowance for doubtful accounts		(4,721)	(4,936)
Total investments and other assets	11,726		11,214
Total non-current assets			97,988		105,356
Total assets		132,521		140,120

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						(Millions of yen)
Account			Fiscal year ended Mar. 31, 2020	Fiscal year ended Mar. 31, 2021
		(As of Mar. 31, 2020)	(As of Mar. 31, 2021)
Liabilities
Current liabilities
Notes and accounts payable - trade			6,566			8,927
Electronically recorded obligations - operating	3,887			3,965
Short-term loans payable				11,314			12,837
Lease obligations	837			1,167
Income taxes payable			5,374			2,871
Provision for bonuses	346			345
Other			7,431			7,091
Total current liabilities			35,758		37,206
Non-current liabilities
Long-term loans payable	20,679			23,332
Lease obligations			1,782			4,174
Deferred tax liabilities for land revaluation	203			203
Provision for share-based compensation			591			786
Provision for gas holder repairs	348			285
Provision for loss on voluntary recall of				369			338
products
Net defined benefit liability	2,853		2,862
Other			1,578			1,587
Total non-current liabilities			28,407		33,571
Total liabilities			64,165			70,778
Net assets
Shareholders' equity
Capital stock	7,070			7,070
Capital surplus			5,860			5,860
Retained earnings	61,020			61,468
Treasury shares			(6,075)		(5,754)
Total shareholders' equity			67,875		68,644
Accumulated other comprehensive income
Valuation difference on available-for-sale	230		472
securities
Foreign currency translation adjustment			303			271
Remeasurements of defined benefit plans	(58)		(51)
Total accumulated other comprehensive income			475			693
Non-controlling interests			4		4
Total net assets			68,355			69,342
Total liabilities and net assets			132,521		140,120

- 9 -

1. Consolidated Statement of Income and Comprehensive Income (Consolidated Statement of Income)

								(Millions of yen)
			Fiscal year		Fiscal year
Account			ended Mar. 31, 2020		ended Mar. 31, 2021
		(from Apr. 1, 2019		(from Apr. 1, 2020
			to Mar. 31, 2020)		to Mar. 31, 2021)
Net sales	132,496	143,490
Cost of sales					69,131				75,698
Gross profit					63,365				67,791
Selling, general and administrative expenses
Freightage related expenses	2,683	3,221
Provision of allowance for doubtful accounts	212	191
Salaries and allowances	9,614	9,866
Provision for bonuses	302	339
Retirement benefit expenses					641				677
Provision for share-based compensation	144	249
Provision for gas holder repairs	29	37
Welfare expenses	2,029	2,033
Supplies expenses	4,839	3,589
Taxes and dues	1,356	1,349
Enterprise tax					680				516
Depreciation	9,174	9,744
Amortization of goodwill	864	1,263
Repair expenses	1,094	1,131
Commission fee	12,064	13,488
Other	6,112	6,462
Total selling, general and administrative expenses					51,845				54,163
Operating income			11,519	13,627
Non-operating income
Interest income	463	5
Dividend income					45				27
Foreign exchange gains					-	49
Real estate rent	67	73
Insurance income	42	27
Dividend income of insurance	19	21
Other	331	418
Total non-operating income					970				623
Non-operating expenses
Interest expenses					297				156
Share of loss of entities accounted for using	354				-
equity method
Foreign exchange losses					9				-
Provision of allowance for doubtful accounts	617				-
Provision for loss on voluntary recall of products	340				-
Other					188				32
Total non-operating expenses					1,807				188
Ordinary income			10,682	14,062

- 10 -

						(Millions of yen)
			Fiscal year	Fiscal year
Account	ended Mar. 31, 2020	ended Mar. 31, 2021
(from Apr. 1, 2019	(from Apr. 1, 2020
			to Mar. 31, 2020)	to Mar. 31, 2021)
Extraordinary income
Gain on sales of non-current assets	7,825	93
Gain on sales of investment securities	69	276
Gain on extinguishment of tie-in shares	52		-
Total extraordinary income	7,947	370
Extraordinary losses
Loss on sales of non-current assets	231	277
Loss on retirement of non-current assets	515	352
Loss on sales of investment securities				196			11
Loss on valuation of investment securities	508		-
Impairment loss	2,643	464
Provision of allowance for doubtful accounts	3,057		-
Temporary amortization of customer acquisition				1,323			-
costs
Reorganization cost		-	67
Total extraordinary losses	8,476		1,172
Profit before income taxes	10,154		13,260
Income taxes - current	6,400		3,827
Income taxes - deferred	(3,988)	59
Total income taxes	2,411		3,887
Profit	7,742		9,373
Loss attributable to non-controlling interests	(0)	(0)
Profit attributable to owners of parent		7,742		9,373

- 11 -

(Consolidated Statement of Comprehensive Income)

					(Millions of yen)
		Fiscal year	Fiscal year
Account		ended Mar. 31, 2020	ended Mar. 31, 2021
	(from Apr. 1, 2019	(from Apr. 1, 2020
		to Mar. 31, 2020)	to Mar. 31, 2021)
Profit	7,742		9,373
Other comprehensive income
Valuation difference on available-for-sale			(116)			242
securities
Remeasurements of defined benefit plans, net of	2		7
tax
Share of other comprehensive income of entities			17			(32)
accounted for using equity method

Total other comprehensive income

Comprehensive income

Comprehensive income attributable to

Comprehensive income attributable to owners of parent

Comprehensive income attributable to non- controlling interests

(96)	217
7,646		9,590
	7,646		9,591
(0)	(0)

- 12 -

(3) Consolidated Statement of Changes in Equity

Fiscal year ended Mar. 31, 2020 (from Apr. 1, 2019 to Mar. 31, 2020)

									(Millions of yen)
			Shareholders' equity
			Capital		Retained			Treasury			Total
	Capital stock						shareholders'
		surplus		earnings			shares
								equity
Balance at the beginning of current	7,070	7,920	58,971			(5,474)			68,487
period
Changes of items during period
Dividends of surplus				(3,398)						(3,398)
Profit attributable to owners of				7,742						7,742
parent
Purchase of treasury shares								(4,995)			(4,995)
Disposal of treasury shares				(0)			39			38
Retirement of treasury shares		(2,060)	(2,294)			4,354			-
Net changes of items other than
shareholders' equity
Total changes of items during period	-	(2,060)	2,048			(601)			(612)
Balance at the end of current period	7,070	5,860	61,020			(6,075)			67,875
	Accumulated other comprehensive income
	Valuation		Foreign		Remeasure-		Total			Non-	Total net
				accumulated	controlling
	difference on		currency		ments of		assets
				other			interests
	available-for-		translation		defined
				comprehensive
	sale securities		adjustment		benefit plans
				income
Balance at the beginning of current	346		286		(61)		571	5		69,064
period
Changes of items during period
Dividends of surplus													(3,398)
Profit attributable to owners of													7,742
parent
Purchase of treasury shares													(4,995)
Disposal of treasury shares													38
Retirement of treasury shares													-
Net changes of items other than	(116)		17		2			(96)	(0)	(96)
shareholders' equity
Total changes of items during period	(116)		17		2			(96)	(0)	(709)
Balance at the end of current period	230		303		(58)		475	4		68,355

- 13 -

Fiscal year ended Mar. 31, 2021 (from Apr. 1, 2020 to Mar. 31, 2021)

									(Millions of yen)
			Shareholders' equity
			Capital		Retained			Treasury			Total
	Capital stock						shareholders'
		surplus		earnings			shares
								equity
Balance at the beginning of current	7,070	5,860	61,020			(6,075)			67,875
period
Changes of items during period
Dividends of surplus				(3,914)						(3,914)
Profit attributable to owners of				9,373						9,373
parent
Purchase of treasury shares								(4,760)			(4,760)
Disposal of treasury shares		6					64			71
Retirement of treasury shares		(6)	(5,010)			5,017			-
Net changes of items other than
shareholders' equity
Total changes of items during period	-		-	448			321			769
Balance at the end of current period	7,070	5,860	61,468			(5,754)			68,644
	Accumulated other comprehensive income
	Valuation		Foreign		Remeasure-		Total			Non-	Total net
				accumulated	controlling
	difference on		currency		ments of		assets
				other			interests
	available-for-		translation		defined
				comprehensive
	sale securities		adjustment		benefit plans
				income
Balance at the beginning of current	230		303		(58)		475	4		68,355
period
Changes of items during period
Dividends of surplus													(3,914)
Profit attributable to owners of													9,373
parent
Purchase of treasury shares													(4,760)
Disposal of treasury shares													71
Retirement of treasury shares													-
Net changes of items other than	242		(32)		7			217	(0)	217
shareholders' equity
Total changes of items during period	242		(32)		7			217	(0)	987
Balance at the end of current period	472		271		(51)		693	4		69,342

- 14 -

(4) Consolidated Statement of Cash Flows

								(Millions of yen)
			Fiscal year	Fiscal year
Account			ended Mar. 31, 2020	ended Mar. 31, 2021
		(from Apr. 1, 2019	(from Apr. 1, 2020
			to Mar. 31, 2020)	to Mar. 31, 2021)
Cash flows from operating activities
Profit before income taxes					10,154				13,260
Depreciation					9,277				9,844
Impairment loss	2,643		464
Temporary amortization of customer acquisition					1,323				-
costs
Amortization of goodwill	864		1,263
Increase (decrease) in allowance for doubtful					3,792				196
accounts
Increase (decrease) in net defined benefit liability	184		9
Increase (decrease) in provision for share-based					114				195
compensation
Increase (decrease) in allowance for loss on	309		(30)
voluntary recall of products
Interest and dividend income	(509)	(33)
Interest expenses	297		156
Foreign exchange losses (gains)					(14)				(138)
Share of (profit) loss of entities accounted for	354				-
using equity method
Loss (gain) on sales of non-current assets					(7,594)				183
Loss on retirement of non-current assets	515		352
Loss (gain) on sales of investment securities	127		(265)
Loss (gain) on valuation of investment securities	508				-
Decrease (increase) in notes and accounts					(3,378)				(3,969)
receivable - trade
Decrease (increase) in inventories	(155)	(581)
Increase (decrease) in notes and accounts payable					(895)				2,439
- trade
Increase (decrease) in accrued consumption taxes	207		(294)
Increase (decrease) in advances received	72		(145)
Other, net		2,036		(211)
Subtotal	20,235		22,695
Interest and dividend income received			50		32
Interest expenses paid	(301)	(158)
Income taxes paid	(4,007)	(6,500)
Net cash provided by (used in) operating activities					15,975				16,068
Cash flows from investing activities
Purchase of property, plant and equipment					(9,241)				(12,254)
Proceeds from sales of property, plant and	249		224
equipment
Purchase of intangible assets					(2,012)				(1,425)
Purchase of goodwill	(2,545)	(1,787)
Purchase of investment securities	(1)	(1)
Proceeds from sales of investment securities	418		836
Proceeds from sales of real estate for investment	18,955				-
Payments of loans receivable	(1,114)	(11)
Collection of loans receivable					18				15
Other, net	(48)	(109)
Net cash provided by (used in) investing activities					4,679				(14,513)
	- 15 -

								(Millions of yen)
			Fiscal year	Fiscal year
Account			ended Mar. 31, 2020	ended Mar. 31, 2021
		(from Apr. 1, 2019	(from Apr. 1, 2020
			to Mar. 31, 2020)	to Mar. 31, 2021)
Cash flows from financing activities
Increase in short-term loans payable					20,280				21,000
Decrease in short-term loans payable					(28,159)				(19,000)
Proceeds from long-term loans payable	10,000		15,000
Repayments of long-term loans payable					(15,075)				(12,824)
Purchase of treasury shares	(4,995)	(4,760)
Cash dividends paid	(3,398)	(3,914)
Other, net		(981)	(1,207)
Net cash provided by (used in) financing activities		(22,330)	(5,706)
Effect of exchange rate change on cash and cash	(45)	33
equivalents
Net increase (decrease) in cash and cash equivalents					(1,721)				(4,117)
Cash and cash equivalents at beginning of period			18,193		16,528
Increase in cash and cash equivalents resulting from					56				-
merger with unconsolidated subsidiaries
Cash and cash equivalents at end of period			16,528		12,411

- 16 -

1. Notes to Consolidated Financial Statements (Notes on Going Concern Assumption)
   None.

(Segment Information, etc.)

1. Overview of reportable segments

1. Decision method of the reportable segments
   The Group's reportable segments are regularly reviewed by the Board of Directors using the segregated financial information available within each segment to determine the allocation of management resources and evaluate business performance.
   The Group is mainly engaged in the supply and sale of LP gas, electricity and city gas (natural gas), as well as the peripheral business of gas appliances sales and gas pipe works. The consolidated companies are grouped into the three product/service segments of "LP gas business," "electricity business" and "city gas business."
2. Main products and services of each reportable segment
   LP gas business……..Supply and sale of LP gas, Community gas business, Gas appliances sales, Gas pipe works, Platform business
   Electricity business…Retail sale of electricity
   City gas business……Supply and sale of city gas, Gas appliances sales, Gas pipe works
   (Matters Related to Changes in Reportable Segment, etc.)
   Effective the current fiscal year, the "Electricity business," which had been included in the "LP gas business," has been presented as a separate reportable segment due to its increased importance. Accordingly, segment information for the previous fiscal year has been reclassified reflecting the change.

2. Calculation method of the amount of net sales, income (loss), assets, liabilities and other items by reportable segment

The accounting method applied to reported business segments is the same as that stated in "Important Matters that Form the Basis for Preparing Consolidated Financial Statements." Segment income figures are based on gross profit.

Inter-segment sales and transfers are based on actual prices in the markets.

(Changes in the Method for Calculating Income and Assets of Reportable Segments)

Having conducted a fact-based review of the information used for the decision-making and performance assessment by the management, such as business development and the method for allocating business resources, etc., of the Group, the Company began calculating reportable segment income using "gross profit" instead of "operating income" effective the current fiscal year. The Company also began treating "corporate assets" as part of the adjustment for segment assets instead of allocating them to reportable segments. Accordingly, the segment information for the previous fiscal year has been prepared based on the new calculation method.

- 17 -

3. Information on the amount of net sales, income (loss), assets, liabilities and other items by reportable segments For the previous fiscal year (From April 1, 2019 to March 31, 2020)

						(Millions of yen)
	Reportable segments			Consolidated
	Total	Adjustments	financial
				statements
				(Note 2, 3)
	LP gas	Electricity	City gas
		amount
	Business	Business	Business			(Note 1)
Net sales
Net sales to outside	68,028	5,419	59,048	132,496	-	132,496
customers
Segment income	41,383	442	21,539	63,365	-	63,365
Segment assets	51,450	746	41,399	93,597	38,923	132,521
Other items
Increase in
property, plant and	9,823	-	5,284	15,108	1,638	16,746
equipment and
intangible assets

(Notes) 1. Segment income is adjusted to gross profit in the Consolidated Statement of Income.

1. Adjustment for segment assets refers to corporate assets not allocated to each reportable segments, and consist mainly of cash and deposits, deferred tax assets and the head office assets of the Company, etc.
2. Adjustment for "increase in property, plant and equipment and intangible assets" under other items is attributable to the acquisition of corporate assets not allocated to reportable segments.

For the current fiscal year (From April 1, 2020 to March 31, 2021)

						(Millions of yen)
	Reportable segments			Consolidated
		Adjustments	financial
				Total	statements
				(Note 2, 3)
	LP gas	Electricity	City gas
		amount
	Business	Business	Business			(Note 1)
Net sales
Net sales to outside	71,030	18,171	54,288	143,490	-	143,490
customers
Segment income	44,348	1,608	21,834	67,791	-	67,791
Segment assets	60,653	3,863	41,987	106,503	33,617	140,120
Other items
Increase in
property, plant and	13,144	-	5,471	18,616	1,586	20,203
equipment and
intangible assets

(Notes) 1. Segment income is adjusted to gross profit in the Consolidated Statement of Income.

1. Adjustment for segment assets refers to corporate assets not allocated to each reportable segments, and consist mainly of cash and deposits, deferred tax assets and the head office assets of the Company, etc.
2. Adjustment for "increase in property, plant and equipment and intangible assets" under other items is attributable to the acquisition of corporate assets not allocated to reportable segments.

- 18 -

(Per Share Information)

Item	For the previous fiscal year	For the current fiscal year
(From Apr. 1, 2019	(From Apr. 1, 2020
	to Mar. 31, 2020)	to Mar. 31, 2021)
Net assets per share	¥570.88	¥592.64
Basic earnings per share	¥63.33	¥78.94
Diluted earnings per share	Not stated since there is no dilutive	Not stated since there is no dilutive
security.	security.

(Notes) The basis for calculation

1. The Company conducted a 3-for-1 stock split on April 1, 2021. "Net assets per share" and "Basic earnings per share" are calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.
2. The basis for calculation of net assets per share is as follows:

(Millions of yen unless otherwise stated)

Item	For the previous fiscal year	For the current fiscal year
(As of Mar. 31, 2020)	(As of Mar. 31, 2021)
Total net assets	68,355	69,342
Amount deducted from the total	4	4
net assets
[Non-controlling interests]	[4]	[4]
Amount of net assets related to
common shares as of the end of	68,350	69,338
the fiscal year
Number of shares of common
shares used in the calculation of	119,728	116,998
net assets per share as of the end
of the fiscal year (Thousands of
shares)

3. The basis for calculation of basic earnings per share is as follows:

(Millions of yen unless otherwise stated)

	For the previous fiscal year	For the current fiscal year
	(From Apr. 1, 2019	(From Apr. 1, 2020
	to Mar. 31, 2020)	to Mar. 31, 2021)
Profit attributable to owners of	7,742	9,373
parent
Profit not attributable to common	-	-
shareholders
Profit attributable to owners of	7,742	9,373
parent related to common shares
Average number of common
shares outstanding during the	122,272	118,739
fiscal year (Thousands of shares)

- 19 -

(Significant Subsequent Events)

(Stock Split and Partial Amendment to the Articles of Incorporation associated with Stock Split)

Based on a resolution of the Board of Directors at its meeting held on January 28, 2021, the Company conducted a stock split and made a partial amendment to the Articles of Incorporation effective April 1, 2021.

1. Purpose of the stock split
   The purpose of the stock split is to improve the liquidity of the Company's shares and expand the investor base by reducing the price of share-trading unit.
2. Overview of the stock split

1)	Method for the stock split
	For each share of the common stock owned by shareholders recorded in the final shareholder registry with a
	record date of March 31, 2021 (Wednesday), the Company conducted a 3-for-1 stock split.
2)	Increase in the number of shares resulting from the stock split
	Total number of shares issued before the stock split	40,197,166 shares
	Increase in the number of shares resulting from the stock split	80,394,332 shares
	Total number of shares issued after the stock split	120,591,498 shares
	Total number of authorized shares after the stock split	480,000,000 shares
3)	Schedule for the stock split
	Date of public notice of the record date	March 12, 2021
	Record date	March 31, 2021
	Effective date	April 1, 2021

4) Effect on per share information

Please refer to "Per share Information" for the effect that the stock split has on per share information.

1. Partial amendment to the Articles of Incorporation associated with the stock split

1. Reasons for the amendment

In line with the stock split, pursuant to the provisions of Article 184, Paragraph 2 of the Companies Act, the Company will change, as of April 1, 2021 (Thursday), the total number of authorized shares set forth in Article 5 of the Articles of Incorporation of the Company.

2) Description of the amendment

		(The changes are underlined.)
Current Articles of Incorporation		Proposed amendment
(Total number of authorized shares)		(Total number of authorized shares)
Article 5 The total number of authorized shares of the		Article 5 The total number of authorized shares of the
company shall be 179,846,100shares.		company shall be 480,000,000shares.
	- 20 -

3) Schedule for the amendment

Effective date

April 1, 2021 (Thursday)

(Purchase and Cancellation of Treasury Shares)

The Company decided at a Board of Directors meeting on April 27, 2021 to purchase treasury shares pursuant to the provisions of Article 156, Paragraph 1 of the Companies Act applied mutatis mutandis pursuant to the provisions of Article 165, Paragraph 3 of the same Act, and to cancel treasury shares pursuant to the provisions of Article 178 of the Companies Act.

1. Reason for the purchase and cancellation of treasury shares
   Considering the progress of the enhancement of its financial base for achieving growth, the Company intends to purchase and cancel treasury shares to enhance shareholder returns and increase capital efficiency.
2. Details of the matters associated with the purchase

1)	Class of shares to be purchased:	Common shares of the Company
2)	Total number of shares to be purchased:	Up to 2,000,000 shares
3)	Total value of shares to be purchased:	Up to ¥4.0 billion
4)	Purchase period:	From April 28, 2021 to March 31, 2022
5)	Purchase method:	Purchase of shares from the market based on a discretionary
		trading contract for purchase of treasury shares
(3) Details of the matters associated with the cancellation
1)	Class of shares to be cancelled:	Common shares of the Company
2)	Total number of shares to be cancelled:	1,987,800 shares (1.7% of the total issued shares including
		treasury shares)
3)	Date of cancellation:	May 20, 2021

- 21 -

4. Non-consolidated Financial Statements and Primary Notes

(1) Balance Sheet

								(Millions of yen)
Account			Fiscal year ended Mar. 31, 2020	Fiscal year ended Mar. 31, 2021
		(As of Mar. 31, 2020)	(As of Mar. 31, 2021)
Assets
Current assets
Cash and deposits	8,653		5,979
Notes receivable - trade					16				11
Accounts receivable - trade					9,150				13,108
Merchandise	4,184		4,859
Supplies					30				11
Other	5,573		2,103
Allowance for doubtful accounts	(195)	(189)
Total current assets			27,413		25,883
Non-current assets
Property, plant and equipment
Buildings	10,496		12,085
Accumulated depreciation		(4,982)	(5,197)
Buildings, net	5,513		6,888
Structures			7,633		12,773
Accumulated depreciation	(5,821)	(5,983)
Structures, net			1,812		6,790
Machinery and equipment	31,629		32,307
Accumulated depreciation		(29,010)	(28,923)
Machinery and equipment, net	2,618		3,383
Vehicles			1,031		1,144
Accumulated depreciation	(935)	(990)
Vehicles, net			95		153
Tools, furniture and fixtures	1,389		1,529
Accumulated depreciation		(1,181)	(1,252)
Tools, furniture and fixtures, net	207		276
Land			25,279		25,748
Leased assets					3,216				5,926
Accumulated depreciation	(1,814)	(1,943)
Leased assets, net					1,402				3,982
Construction in progress			3,065		219
Total property, plant and equipment					39,995				47,443
Intangible assets
Goodwill					1,588				2,966
Leasehold right	8		8
Software	3,116		3,161
Telephone subscription right	36		36
Other	250		426
Total intangible assets			5,000		6,599

- 22 -

								(Millions of yen)
Account			Fiscal year ended Mar. 31, 2020	Fiscal year ended Mar. 31, 2021
		(As of Mar. 31, 2020)	(As of Mar. 31, 2021)
Investments and other assets
Investment securities	2,174		1,928
Shares of subsidiaries and associates	24,438		24,438
Investments in capital					3				3
Long-term loans receivable					5,531				7,837
Long-term loans receivable from employees	138		137
Long-term prepaid expenses					1				26
Deferred tax assets	5,931		5,766
Guarantee deposits	22		22
Other	2,656		2,564
Allowance for doubtful accounts	(6,950)	(7,165)
Total investments and other assets			33,944		35,560
Total non-current assets	78,940		89,602
Total assets			106,354		115,486
Liabilities
Current liabilities
Electronically recorded obligations - operating	3,887		3,965
Accounts payable - trade	6,242		8,479
Short-term loans payable					11,257				12,819
Lease obligations	758		1,093
Accounts payable - other	3,284		3,977
Accrued expenses	517		443
Income taxes payable	4,277		1,738
Accrued consumption taxes	490		34
Deposits received					4,791				7,063
Total current liabilities			35,507		39,616
Non-current liabilities
Long-term loans payable	20,642		23,312
Lease obligations	1,631		4,031
Provision for retirement benefits	1,801		1,824
Provision for share-based compensation	385		508
Provision for loss on voluntary recall of	369		338
products
Long-term deposits received	390		810
Other		1,435		1,470
Non-current liabilities	26,656		32,296
Total liabilities			62,164		71,912

- 23 -

							(Millions of yen)
Account		Fiscal year ended Mar. 31, 2020 Fiscal year ended Mar. 31, 2021
	(As of Mar. 31, 2020)		(As of Mar. 31, 2021)
Net assets
Shareholders' equity
Capital stock	7,070	7,070
Capital surplus

Legal capital surplus

Total capital surplus

Retained earnings

Legal retained earnings

Other retained earnings

Reserve for advanced depreciation of noncurrent assets

		5,197	5,197
		5,197				5,197
		949		949
		108		107

General reserve	7,750	7,750
Retained earnings brought forward	28,972	27,810
Total retained earnings	37,780	36,617
Treasury shares	(6,075)	(5,754)
Total shareholders' equity	43,972	43,131

Valuation and translation adjustments Valuation difference on available-for-sale

securities

Total valuation and translation adjustments Total net assets

Total liabilities and net assets

		217	442
		217				442
		44,190				43,573
		106,354	115,486

- 24 -

(2) Statement of Income

							(Millions of yen)
			Fiscal year	Fiscal year
Account			ended Mar. 31, 2020	ended Mar. 31, 2021
		(from Apr. 1, 2019	(from Apr. 1, 2020
			to Mar. 31, 2020)	to Mar. 31, 2021)
Net sales	101,706		110,853
Cost of sales
Beginning goods				4,304			4,184
Cost of purchased goods		62,612		67,837
Total	66,917		72,022
Transfer to other account			395				-
Ending goods	4,184		4,859
Total cost of sales			62,337		67,162
Gross profit	39,369		43,690
Selling, general and administrative expenses
Freightage related expenses	2,586		2,813
Provision of allowance for doubtful accounts	177		221
Salaries					6,437				6,819
Retirement benefit expenses	400		419
Welfare expenses	1,274		1,302
Supplies expenses	3,654		2,692
Taxes and dues	473		448
Depreciation	2,926		3,752
Repair expenses					1,466				1,316
Commission fee	8,239		11,214
Other	4,298		3,879
Total selling, general and administrative expenses			31,934		34,882
Operating income					7,435				8,808
Non-operating income
Interest income	483		16
Dividend income	1,717		1,418
Foreign exchange gains					-	49
Real estate rent	87		92
Miscellaneous income					184				331
Total non-operating income			2,472		1,908
Non-operating expenses
Interest expenses	294		153
Foreign exchange losses					9				-
Provision of allowance for doubtful accounts	607				-
Provision for loss on voluntary recall of products	340				-
Miscellaneous loss		183		24
Total non-operating expenses	1,435		178
Ordinary income			8,472		10,538
Extraordinary income
Gain on sales of non-current assets					7,820				43
Gain on sales of investment securities					69				276
Gain on extinguishment of tie-in shares	84				-
Total extraordinary income					7,973				320

- 25 -

					(Millions of yen)
			Fiscal year	Fiscal year
Account			ended Mar. 31, 2020	ended Mar. 31, 2021
		(from Apr. 1, 2019	(from Apr. 1, 2020
			to Mar. 31, 2020)	to Mar. 31, 2021)
Extraordinary losses
Loss on sales of non-current assets	110		84
Loss on retirement of non-current assets	337		145
Loss on sales of investment securities	196		11
Loss on valuation of investment securities			508			-
Loss on valuation of shares of subsidiaries and	1,174			-
associates
Impairment loss			2,343			464
Provision of allowance for investment loss	4,840			-
Other	61			-
Total extraordinary losses			9,573		705
Profit before income taxes			6,872			10,153
Income taxes - current			4,961		2,325
Income taxes - deferred	(3,712)	66
Total income taxes			1,248		2,391
Profit			5,624			7,762

- 26 -

(3) Statement of Changes in Equity

Fiscal year ended Mar. 31, 2020 (from Apr. 1, 2019 to Mar. 31, 2020)

										(Millions of yen)
						Shareholders' equity
			Capital surplus			Retained earnings
								Other retained earnings
	Capital	Legal		Other		Total	Legal	Reserve for			Total
	stock			advanced		Retained
	capital		capital		capital	retained		retained
				depreciation	General	earnings
		surplus		surplus		surplus	earnings	of non-	reserve	brought	earnings
								current		forward
								assets
Balance at the beginning	7,070	5,197		2,060		7,257	949	108	7,750	29,042	37,850
of current period
Changes of items during
period
Dividends of surplus										(3,398)	(3,398)
Provision of reserve
for advanced								(0)		0	-
depreciation of non-
current assets
Profit										5,624	5,624
Purchase of treasury
shares
Disposal of treasury										(0)	(0)
shares
Retirement of treasury				(2,060)		(2,060)				(2,294)	(2,294)
shares
Net changes of items
other than
shareholders' equity
Total changes of items	-	-		(2,060)		(2,060)	-	(0)	-	(69)	(70)
during period
Balance at the end of	7,070	5,197		-		5,197	949	108	7,750	28,972	37,780
current period

- 27 -

(Millions of yen)

			Valuation and
	Shareholders' equity	translation
			adjustments
			Valuation	Total	Total net
	Treasury	Total	difference	valuation	assets
	shareholders'	on	and
	shares	available-
		equity	for-sale	translation
			adjustments
			securities
Balance at the beginning	(5,474)	46,704	313	313	47,017
of current period
Changes of items during
period
Dividends of surplus		(3,398)			(3,398)
Provision of reserve
for advanced		-			-
depreciation of non-
current assets
Profit		5,624			5,624
Purchase of treasury	(4,995)	(4,995)			(4,995)
shares
Disposal of treasury	39	38			38
shares
Retirement of treasury	4,354	-			-
shares
Net changes of items			(96)	(96)	(96)
other than
shareholders' equity
Total changes of items	(601)	(2,731)	(96)	(96)	(2,827)
during period
Balance at the end of	(6,075)	43,972	217	217	44,190
current period

- 28 -

Fiscal year ended Mar. 31, 2021 (from Apr. 1, 2020 to Mar. 31, 2021)

										(Millions of yen)
						Shareholders' equity
			Capital surplus			Retained earnings
								Other retained earnings
	Capital	Legal		Other		Total	Legal	Reserve for			Total
	stock			advanced		Retained
	capital		capital		capital	retained		retained
				depreciation	General	earnings
		surplus		surplus		surplus	earnings	of non-	reserve	brought	earnings
								current		forward
								assets
Balance at the beginning	7,070	5,197		-		5,197	949	108	7,750	28,972	37,780
of current period
Changes of items during
period
Dividends of surplus										(3,914)	(3,914)
Provision of reserve
for advanced								(0)		0	-
depreciation of non-
current assets
Profit										7,762	7,762
Purchase of treasury
shares
Disposal of treasury				6		6
shares
Retirement of treasury				(6)		(6)				(5,010)	(5,010)
shares
Net changes of items
other than
shareholders' equity
Total changes of items	-	-		-		-	-	(0)	-	(1,162)	(1,162)
during period
Balance at the end of	7,070	5,197		-		5,197	949	107	7,750	27,810	36,617
current period

- 29 -

(Millions of yen)

			Valuation and
	Shareholders' equity	translation
			adjustments
			Valuation	Total	Total net
	Treasury	Total	difference	valuation	assets
	shareholders'	on	and
	shares	available-
		equity	for-sale	translation
			adjustments
			securities
Balance at the beginning	(6,075)	43,972	217	217	44,190
of current period
Changes of items during
period
Dividends of surplus		(3,914)			(3,914)
Provision of reserve
for advanced		-			-
depreciation of non-
current assets
Profit		7,762			7,762
Purchase of treasury	(4,760)	(4,760)			(4,760)
shares
Disposal of treasury	64	71			71
shares
Retirement of treasury	5,017	-			-
shares
Net changes of items
other than			225	225	225
shareholders' equity
Total changes of items	321	(841)	225	225	(616)
during period
Balance at the end of	(5,754)	43,131	442	442	43,573
current period

- 30 -

5. Others

1. Production, Order and Sales Status
   The Group is mainly engaged in sales and consequently does not indicate amounts and volumes representing its production and orders received for each reportable segment.

1. Sales results

Sales by reportable segment for the fiscal year ended March 31, 2021 are as follows:

Sales results by reportable segments	(Millions of yen)
Reportable segments		For the previous fiscal year	For the current fiscal year
		(from Apr. 1, 2019 to Mar. 31, 2020)	(from Apr. 1, 2020 to Mar. 31, 2021)
LP gas Business		68,028	71,030
Electricity Business		5,419	18,171
City gas Business		59,048	54,288
Total		132,496	143,490
2) Sales results of LP gas business		(Millions of yen)
Reportable segments		For the previous fiscal year	For the current fiscal year
		(from Apr. 1, 2019 to Mar. 31, 2020)	(from Apr. 1, 2020 to Mar. 31, 2021)
Gas		56,295	56,631
Equipment, construction		11,733	14,399
contracts, platform, etc.
Total		68,028	71,030
3) Sales results of electricity business	(Millions of yen)
Reportable segments		For the previous fiscal year	For the current fiscal year
		(from Apr. 1, 2019 to Mar. 31, 2020)	(from Apr. 1, 2020 to Mar. 31, 2021)
Electricity		5,419	18,171
4) Sales results of city gas business		(Millions of yen)
Reportable segments		For the previous fiscal year	For the current fiscal year
		(from Apr. 1, 2019 to Mar. 31, 2020)	(from Apr. 1, 2020 to Mar. 31, 2021)
Gas		51,172	47,336
Equipment, construction		7,876	6,951
contracts, etc.
Total		59,048	54,288
		- 31 -

(Notes) 1. Above figures are stated net of consumption taxes, etc.

1. 2. Inter-segment transactions are offset.

2. Changes to the Officers of the Company
   As for the details of this matter, please refer to the "Notice of Changes in Personnel of the Company and Major Subsidiaries," announced on March 16, 2021.

- 32 -

(3) Trends in the Number of Houses, etc.

			Number of Consumer Households
	(Unit: 1,000 households)
	2,000
										1,860
1,800								1,671
						1,512	224
1,600								101
			1,338	16	280	302
1,400
	1,201		232
		98
1,200
			412		411	413	417
1,000		405
800
600
			828		852	877	918
400		796
200
0
2017.3		2018.3	2019.3	2020.3	2021.3
						LP gas		Existing city gas		New city gas		Electricity

(Unit: 1,000 tons)	Gas / Electricity Sales Volume		(Unit: GWh)
800			676	707	701	3,000
700	640	674	2,500
600
211	205	211	223	204	2,000
500
400	115	140	159	174	185	1,500
300	133	137	124	129	117	1,000
200
100	182	192	182	181	194	500
0	2017.3	2018.3	2019.3	2020.3	2021.3	0
	LP gas (household use)		LP gas (commercial use)	City gas (household use)
	City gas (commercial use)	Electricity

FOB Price Propane

(Unit: $/t)
1,400
1,200
1,000
800
600
400
200
0
2018.4	2019.4	2020.4	2021.4

(Note) Gas sales volume includes the sales volume of city gas (LNG) of the city gas business, which has been converted into the calorie value equivalent of LPG gas sales volume (1,000 tons).

- 33 -