Osaka Gas : Financial Report for 1st Quarter of FY2022.3 (April 2021 - June 2021)

Financial Report

for 1st Quarter of FY2022.3 (April 2021 - June 2021)

Creating Value for a Sustainable Future

July 2021

Osaka Gas Co., Ltd.

Contents

Ⅰ . Summary of Business Results for 1st Quarter of	Ⅲ. Forecasts for FY2022.3
FY2022.3 and Forecasts for FY2022.3

• Summary of Business Results for 1st Quarter of
FY2022.3	-	4
• Summary of Forecasts for FY2022.3	-	5
• YoY Comparison of 1st Quarter of FY2022.3	-	6
• FY2022.3 Forecasts against Previous Forecasts	-	7
• YoY Comparison of FY2022.3 Forecasts	-	8
• Results of Investment for growth for 1st Quarter of	-	9
FY2022.3
Ⅱ. Business Results for 1st Quarter of FY2022.3
• YoY Comparison of 1st Quarter of FY2022.3	-	11-15
• Results for 1st Quarter of FY2022.3 in Each Segment	-	16-18

• YoY Comparison of FY2022.3 Forecasts	-	20-24
• Forecasts for FY2022.3 in Each Segment	-	25-27
•	Risk Factors for Annual Earnings Results Forecasts	-	28
•	（Reference）Topics in 1st Quarter of FY2022.3	-	29

Management information is available on Osaka Gas websites.
Financial reports, annual reports and road show materials can be accessed and downloaded at the following URL. https://www.osakagas.co.jp/en/ir/
Disclaimer
Certain statements contained herein are forward-looking statements, strategies, and plans, which reflect our judgment based on the information so far available. Actual results may
differ materially from those discussed in such statements. Among the factors that could cause actual results to differ materially are: economic trends in Japan, sharp fluctuations in
exchange rates and crude oil prices, and extraordinary weather conditions.
Note regarding gas sales volume
All gas sales volumes are indicated based on the standard heating value at 45 MJ/m3.
Note regarding consolidated gas sales volume
The fiscal year of Nabari Kintetsu Gas, Toyooka Energy, and Shingu Gas ends on December 31.	2

Ⅰ . Summary of Business Results for 1st Quarter of FY2022.3 and Forecasts for FY2022.3

Summary of Business Results for 1st Quarter of FY2022.3

• Ordinary profit increased by 31.4% (¥10.0 billion) from the same period last year to ¥42.1 billion, due to the increase in the profit contribution from Freeport LNG Project and Sabine Shale Gas Project in the International Energy business and the increased profit in the Life & Business Solution business, including the information solutions business and the fitness business, due to the reduced impact of the COVID-19.

billion yen		A. FY22.3	B. FY21.3	A-B	(A-B)/B	Remarks
				1Q	1Q
Net sales		314.3	317.2	-2.9	-0.9％
Ordinary profit		42.1	32.0	+10.0	+31.4%	Increase in the International Energy business
	(Freeport, Sabine) and in the LBS*2
								(information, fitness), etc.
	Time-lag effect (Gas and	-11.0	0.4	-11.5	-	Breakdown of difference from previous year
	Electricity)*1						(-11.5) Gas -8.0, Electricity -3.5
	Ordinary profit		53.2	31.6	+21.6	+68.4%
	excluding time-lag effect
Profit attributable to owners of	31.5	21.6	+9.8	+45.8%
parent
*1 Included in Domestic Energy
*2 Life & Business Solutions
				A. FY22.3	B. FY21.3	A-B		Remarks
				1Q	1Q
Crude oil price		USD/bbl	66.9	32.2	+34.7	A: Average of preliminary monthly data up to June 2021
Exchange rate		JPY/USD	109.5	107.6	+1.9

4

Summary of Forecasts for FY2022.3: Revision of Business Forecasts

• We have revised our business forecasts for FY2022.3 due to changes in the business environment, which is the basis of our business forecasts, such as rising crude oil prices.
• Net sales are expected to increase by ¥105.0 billion from the initial forecast to ¥1,510.0 billion, mainly due to the expected increase in unit sales prices in the gas and electric power businesses caused by the rise in crude oil prices.
• Ordinary profit is expected to remain unchanged from the initial forecast at ¥95.0 billion, partly due to increased profits in the International Energy businesses resulting from rising crude oil prices and U.S. interest rates, despite the negative time-lag effect in the Domestic Energy business.

billion yen		A. FY22.3	B. FY22.3	A-B	(A-B)/B	Remarks
			forecasts	previous
				forecasts
Net sales		1,510.0	1,405.0	105.0	+7.5％	Increase in the unit selling prices due to rising
	crude oil price, etc.
Ordinary profit		95.0	95.0	0.0	-
					±
	Time-lag effect (Gas and	-29.9	-11.9	-17.9	-	Breakdown of difference from previous year
	Electricity)*1						(-17.9) Gas -13.9, Electricity -3.9
	Ordinary profit		124.9	106.9	+17.9	+16.8%	Increase profit in the International Energy
	excluding time-lag effect
Profit attributable to owners of	70.5	70.5	0.0	-
parent				±
*1 Included in Domestic Energy
Assumptions		A. FY22.3	B. FY22.3	A-B		Remarks
			forecasts	previous
				forecasts
Crude oil price	USD/bbl	73.0	60.0	+13.0	July 2021 to March 2022 : 75.0 USD/bbl
Exchange rate	JPY/USD	109.9	105.0	+4.9	July 2021 to March 2022 :110.0 JPY/USD	5