Osaka Gas : Brief Report of Consolidated Financial Statements (Japanese GAAP)

First Quarter of the Fiscal Year Ending March 31, 2022

Brief Report of Consolidated Financial Statements (Japanese GAAP)

* This document is an English translation of materials originally disclosed in Japanese and is provided for reference purpose only.

		July 29, 2021
Name of Listed Company	: Osaka Gas Co., Ltd.	Listed Exchanges: 1st Section of Tokyo and Nagoya
Code No.	: 9532	URL: https://www.osakagas.co.jp
Representative Officer	: Title: President	Name: Masataka Fujiwara
Contact	: Title: Manager, Finance Dept.	Name: Kazushige Nomura

Scheduled Date of Financial Report Filing with the Financial Services Agency

: August 6, 2021

Scheduled Date of Dividend Payment

: -

Preparation of Supplementary Explanation Documents for Operating Results

: Yes

Holding of an Informational Meeting for Operating Results

: Yes (for institutional investors and analysts)

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

1. Consolidated Financial Results for the Three Months Ended June 30, 2021 (April 1, 2021 - June 30, 2021)

(1) Consolidated Operating Results

(% of change from the same period in the previous year.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Three months ended

million yen

%

million yen

%

million yen

%

million yen

%

314,353

-0.9

37,549

48.4

42,157

31.4

31,523

45.8

June 30, 2021

Three months ended

317,261

-5.3

25,294

-31.1

32,093

-22.6

21,627

-24.5

June 30, 2020

(Note) Comprehensive income:

Three months ended June 30, 2021

62,529 million yen

( - %YoY)

Three months ended June 30, 2020

1,281 million yen

(-93.9% YoY)

Earnings

Diluted earnings

per share

per share

yen

yen

Three months ended

75.82

-

June 30, 2021

Three months ended

52.02

-

June 30, 2020

(2) Consolidated Financial Position

Total assets

Net assets

Shareholders' equity

/ Total assets

million yen

million yen

%

As of June 30, 2021

2,346,656

1,164,019

48.2

As of March 31, 2021

2,313,357

1,114,597

46.8

Shareholders' equity:

As of June 30, 2021

1,130,292million yen

As of March 31, 2021

1,081,881million yen

2. Dividends

Dividends per share

End of

End of

End of

End of

Annual

First Quarter

Second Quarter

Third Quarter

Fiscal Year

yen

yen

yen

yen

yen

Year ended March 31, 2021

-

25.00

-

27.50

52.50

Year ending March 31, 2022

-

Year ending March 31, 2022

27.50

-

27.50

55.00

(Forecast)

(Note) Revision of the dividend

forecast from previously announced figures: None

3. Forecasts of Consolidated Financial Results for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)

(% of change from the previous fiscal year.)

Net sales Operating profit Ordinary profit Profit attributable to Earnings per share owners of parent

	million yen	%	million yen	%	million yen	%	million yen	%	yen
Full year	1,510,000	10.7	80,500	-28.4	95,000	-25.6	70,500	-12.8	169.56

(Note) Revision of the financial results forecasts from previously announced figures: Yes

*Notes

1. Changes in significant subsidiaries during the three months ended June 30, 2021 (changes in specified subsidiaries resulting in a change in the scope of consolidation): None
2. Adoption of special accounting treatments for quarterly consolidated financial statements: Adopted
   (Note) For detailed information, please refer to "2. (3) Adoption of Special Accounting Treatments for Quarterly Consolidated Financial Statements" on Page 8 of the Attachment to this Summary of Consolidated Financial Statements.
3. Changes in accounting policies, changes in accounting estimates, and restatements
4. 1. Changes in accounting policies due to revisions to accounting standards, etc.: Adopted
   2. Changes in accounting policies other than (i) above: None
   3. Changes in accounting estimates: None
   4. Restatements: None
5. Issued shares (common shares)
6. 1. Number of issued shares at the end of each period (including treasury shares):

	As of June 30, 2021	416,680,000 shares
	As of March 31, 2021	416,680,000 shares
(ii) Number of treasury shares at the end of each period:	As of June 30, 2021	922,868 shares
	As of March 31, 2021	920,065 shares
(iii) Average number of shares during each period:	Three months ended June 30, 2021	415,758,444 shares
	Three months ended June 30, 2020	415,783,526 shares

*Quarterly Brief Report of Consolidated Financial Statements is outside the scope of quarterly review by a certified public accountant or an audit firm.

*Notes on proper use of forecasts and other matters

1. Forward-lookingstatements contained in this document, including financial results forecasts, are based on information currently available to Osaka Gas Co., Ltd. (the "Company") and certain assumptions that the Company regards as reasonable. Actual results may differ significantly from these forecasts, due to various factors. As for notes regarding assumptions used for and the use of the financial results forecasts, please refer to "1. (3) Forecasts of Consolidated Financial Results" on Page 3 of the Attachment to this Brief Report of Consolidated Financial Statements.
2. The Company plans to hold a results briefing for institutional investors and analysts on July 30, 2021. Immediately after the briefing, the presentation materials will be made available on the Company's website

(Reference) Forecasts of Non-Consolidated Financial Results for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)

(% of change from the previous fiscal year.)

	Net sales		Operating profit	Ordinary profit	Profit		Earnings per share
	million yen	%	million yen	%	million yen	%	million yen	%	yen
Full year	1,126,000	6.9	13,000	-78.5	46,500	-36.3	42,500	-22.2	102.22

(Note) Revision of the financial results forecasts from previously announced figures: Yes

Osaka Gas Co., Ltd. (9532)

Brief Report of Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2022

Table of Contents for Attachment

1. Overview of Quarterly Consolidated Financial Results	2
(1)	Consolidated Operating Results	2
(2)	Consolidated Financial Position	3
(3)	Forecasts of Consolidated Financial Results	3
2. Quarterly Consolidated Financial Statements and Notes	4
(1)	Quarterly Consolidated Balance Sheets	4
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income	6
(3)	Notes to the Quarterly Consolidated Financial Statements	8
	(Going Concern Assumption)	8
	(Significant Changes in the Value of Shareholders' Equity)	8
	(Adoption of Special Accounting Treatments for Quarterly Consolidated Financial	8
	Statements)
	(Changes in Accounting Policies)	8
	(Segment Information)	10

1

Osaka Gas Co., Ltd. (9532)

Brief Report of Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2022

1. Overview of Quarterly Consolidated Financial Results

1. Consolidated Operating Results

Consolidated net sales for the three months ended June 30, 2021 decreased by ¥2.9 billion year-on-year to ¥314.3 billion. This was primarily due to the lower unit selling price of city gas under the fuel cost adjustment system in the Domestic Energy Business, despite an increase in sales from the International Energy Business in the Freeport LNG project and the upstream project in the USA. Consolidated ordinary profit increased by ¥10.0 billion year-on-year to ¥42.1 billion. This was primarily due to an increase in profit from the International Energy Business. Profit attributable to owners of parent increased by ¥9.8 billion year- on-year to ¥31.5 billion.

(billion yen)

Consolidated

Compared with

Non-consolidated

Ratio of

previous fiscal year

consolidated results

results

increase

increase

results

to non-consolidated

(a)

/decrease

(b)

results

/decrease

rate (%)

(a) / (b)

Net sales

314.3

-2.9

-0.9

233.7

1.34

Cost of sales

201.9

-12.1

-5.7

157.4

1.28

Selling, general and

74.8

-3.0

-3.9

60.2

1.24

administrative expenses

Operating profit

37.5

+12.2

+48.4

16.0

2.34

Ordinary profit

42.1

+10.0

+31.4

39.7

1.06

Profit attributable to

31.5

+9.8

+45.8

34.9

0.90

owners of parent*

*"Profit" for Non-consolidated

results

(Quarterly Gas Sales Breakdown)

Three months ended Three months ended

YoY

YoY

June 30, 2021

June 30, 2020

Changes

Changes

(a)

(b)

(a) - (b)

rate (%)

Number of gas supply

4,972

5,153

-181

-3.5

(thousands)

Non-

Residential

427

467

-40

-8.7

consolidated

Gas sales volume

Non-residential

1,214

1,121

+93

+8.3

(million m3)*

Total

1,641

1,588

+52

+3.3

Consolidated gas sales volume (million m3)*

1,653

1,601

+51

+3.2

[45MJ/m3]

*Gas sales volume is based on monthly meter readings.

(Quarterly Domestic Electricity Sales Breakdown)

			Three months ended	Three months ended	YoY	YoY
			June 30, 2021	June 30, 2020	Changes	Changes
			(a)	(b)	(a) - (b)	rate (%)
Number of low-voltage electricity supply	1,544	1,375	+168	+12.2
	(thousands)
Electricity sales		Retail	1,140	1,121	+19	+1.7
volume		Wholesale, etc.	2,365	2,164	+201	+9.3
(GWh)
	Total	3,505	3,285	+221	+6.7

*Electricity sales volume for the three months ended June 30, 2021 reflects the estimated usage amount for the period between the last meter reading day in the account closing month and the account closing date, as the revenue for electricity sales is estimated and recorded based on Article 103-2 of the Implementation Guidance on Accounting Standard for Revenue Recognition.

Electricity sales volume for the three months ended June 30, 2020 is based on monthly meter readings.

2

Osaka Gas Co., Ltd. (9532)

Brief Report of Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2022

(2) Consolidated Financial Position

Total assets as of June 30, 2021 increased by ¥33.2 billion compared with March 31, 2021 to ¥2,346.6 billion. This was primarily due to an increase in property, plant and equipment because of progress of investment activities.

Net assets totaled ¥1,164.0 billion and the ratio of shareholders' equity to total assets was 48.2%.

(3) Forecasts of Consolidated Financial Results

Considering recent trends in our performance and other factors, forecasts of consolidated and non- consolidated financial results for the fiscal year ending March 31, 2022 have been revised from the previous forecasts as shown in the tables below.

As for non-consolidated results, net sales is expected to exceed the previous forecasts mainly due to the rise in the unit selling prices in the Gas and Electricity Business caused by a rise in crude oil prices. Operating profit, ordinary profit and profit are expected to decrease compared to the previous forecasts due primarily to the impact of the time lag between fluctuations in raw material costs and their reflection in the unit selling prices in the Gas and Electricity Business.

As for consolidated results, net sales is expected to increase as in non-consolidated results. Operating profit, ordinary profit and profit attributable to owners of parent are expected to remain unchanged from the previous forecasts, mainly due to an increase in profit from the International Energy Business caused by factors such as a rise in crude oil prices and a decrease in profit from the non-consolidated Gas and Electricity Business. Assumptions for the crude oil price and exchange rate have been revised.

(Reference) Assumptions for the crude oil price and exchange rate (July 2021 - March 2022) Crude oil price (All Japan CIF price) at 75USD/bbl

Exchange rate (TTM) at 110JPY/USD

Changes from the previous forecasts of consolidated and non-consolidated financial results in the Brief Report of Consolidated Financial Statements for the Fiscal Year Ending March 31, 2021 announced on April 27, 2021 are shown in the tables below.

Revision of Forecasts of Consolidated Financial Results for the Fiscal Year Ending March 31, 2022

(April 1, 2021 - March 31, 2022)

	Net sales	Operating profit	Ordinary profit	Profit attributable	Earnings per
	to owners of parent	share
Previous Forecasts (A)	million yen	million yen	million yen	million yen	yen
1,405,000	80,500	95,000	70,500	169.56
Revised Forecasts (B)	1,510,000	80,500	95,000	70,500	169.56
Changes (B - A)	+105,000	-	-	-
Changes (%)	+7.5	-	-	-
(Reference)	1,364,106	112,491	127,752	80,857	194.48
Actual Results of Fiscal Year
Ended March 31, 2021

(Reference)
Revision of Forecasts of Non-Consolidated Financial Results for the Fiscal Year Ending March 31, 2022
				(April 1, 2021 - March 31, 2022)
	Net sales	Operating profit	Ordinary profit	Profit	Earnings per
	share
Previous Forecasts (A)	million yen	million yen	million yen	million yen	yen
1,031,000	22,000	51,500	45,000	108.23
Revised Forecasts (B)	1,126,000	13,000	46,500	42,500	102.22
Changes (B - A)	+95,000	-9,000	-5,000	-2,500
Changes (%)	+9.2	-40.9	-9.7	-5.6
(Reference)	1,053,584	60,496	73,035	54,641	131.42
Actual Results of Fiscal Year
Ended March 31, 2021

3