Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Japan
  4. Japan Exchange
  5. Osaka Gas Co., Ltd.
  6. News
  7. Summary
    9532   JP3180400008

OSAKA GAS CO., LTD.

(9532)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Osaka Gas : INTEGRATED REPORT 2021(2/3)

10/22/2021 | 11:34am EST

29 Daigas Group's Co-creation of Value

. Co-create Value for a Sustainable Future

Achieving a Low Carbon /

Carbon Neutral Society

As our contribution to achieving a low carbon / carbon neutral society, we strive to become

Getting to Know

Daigas Group's

Business Report

ESG Highlights

Corporate Governance

Financial Section

30

the Daigas Group

Co-creation of Value

Key initiatives Implement carbon neutral measures, provide clean energy and expand renewable energy value chain, promote advanced utilization of natural gas and environmental products

Road map to carbon neutrality

We aim to achieve our carbon neutrality goal through our ongoing initiatives including methanation R&D and renewable power generation capacity development and other activities as shown in the road map below.

* subject to reviews in accordance with government

2030

2040

2050

policy changes and technological advancement

* including utilization of imported carbon-neutral LNG

What We

carbon neutral by 2050 through decarbonization of our gas and electricity and through

Aim to Be

contribution to the reduction of CO2

emissions.

Aiming to Become Carbon Neutral by 2050

The Daigas Group aims to become carbon neutral by 2050. We plan to reach the goal through decarbonization of our gas and electricity by introducing methanation to generate gas with renewable energy and hydrogen and by increasing the share of renewables in its power generation portfolio. In the meantime, the Daigas Group set the following targets for 2030 as the milestones for the Group's contribution to the

gas energy

utilization

Methanation

Procurement

Decarbonizationof

Hydrogen

Hydrogen

utilization

SOEC co-electrolysis*1

Lab-scale research

Scaling up

basic research

Demonstration at

Enhancing efciency

Expo 2025

(verication)

Promoting carbon recycling

Technical study, site investigation,

Commercialization

Building global supply chain

system creation

Developing new technology for hydrogen generation,

Resolving transportation issues

including chemical looping combustion technology*2, etc.

Resolving procurement and technical issues

Commercialization

Commercialization

Utilization in local network

reduction of CO2 emissions throughout society.

2020

2023

2030

2050

Striving to become carbon neutral in our group business through innovation

Carbon Neutral

  • Develop technologies, such as methanation for decarbonization of city gas.
  • Commercializing methanation technology in 2030 (injecting the carbon-free gas into the city gas pipeline network)
  • Decarbonizing electricity mainly by introducing renewable energy.

Contributing to the reduction of CO2 emissions throughout society

Biogas

of

Renewable

generation

power generation

Thermal

power

power generation

Decarbonization

Fuel cell

Low-

Advanced utilization

carbonization

of natural gas and

CHP

On-site utilization

Commercialization

in domestic/global scale

in domestic/global scale

5 GW development contribution

Increasing

50 of power source portfolio

renewables

Examining and verifying carbon neutral fuel

utilization technology; Participation in CCUS

Partial roll-out

Full roll-out

experiments for verication (consortium, etc.)

Enhancing efciency

Building VPP, utilizing renewables as

and downsizing

balancing energy source, enhancing resilience

Converting fuel from

Utilizing CHP in area energy network,

coal to natural gas

building micro grid, enhancing resilience

*1 Please see page 31 for details. *2 Please see page 58 for details.

  • Making as much contribution as possible to the reduction of CO2 emissions while decarbonization technologies being developed
  • Promoting advanced utilization of natural gas, wider use and expansion of LNG overseas, and development of renewable energy

(FY2031.3 Targets)

5GW

Renewables development contribution on a global basis

Renewables development contribution on a global basis

Osaka Gas will proceed with developing and holding power

As of March 31, 2021, the Daigas Group had contributed

sources, and expanding its electric power procurement

a total of approximately 1.05 GW to the development of

efforts, aiming for our further target of 5 GW renewables

renewables in Japan and overseas.

development contribution by FY2031.3.

Renewables development contribution*1

Targets for Medium-Term Management Plan 2023

Renewables in our power portfolio in Japan

Nearly 50%

CO2 emissions reduction contribution

10million tons

International 0.105 GW

As of March 31,

2021

1.046 GW*2

As of March 31,

As of March 31,

As of March 31, 2031

2021

2024

Domestic

0.941 GW

(Of which,

1.05 GW

2.5 GW

5 GW

procurement:

0.303 GW)

*1 Including power projects which are eligible for the feed-in tariff (FIT) scheme

*2 Including power projects under construction

and for which decisions have been made

Strengths of the Daigas Group

Know-how of developing and operating renewable

Experience in procuring competitively priced LNG

power sources

and developing shale gas

Expertise of fuel conversion to natural gas for in-house

Accumulated knowledge of methanation technology

power generators and heat consuming facilities

CO2 emissions reduction contribution

Several initiatives have been taken from FY2018.3 to FY2021.3.

a fuel in both Japan and abroad. These efforts have resulted in

These include cryogenic power generation at our LNG

a total of approximately 5.60 million tons in CO2 emissions

terminals, the introduction of renewable energy sources in

reduction contribution.

Japan and high-efficiency thermal power generation in both

We aim to contribute to the reduction of CO2 emissions

Japan and abroad, the introduction of fuel cells and gas-

by 10 million tons* in FY2031.3.

powered air conditioning and high-efficiencyhot-water heaters

* Reduction in CO2 emissions by society and customers (compared with

at customer sites, and conversion to the use of natural gas as

FY2017.3)

31 Daigas Group's Co-creation of Value

. Co-create Value for a Sustainable Future

Achieving a Low Carbon / Carbon Neutral Society

We will utilize the technical capabilities and business expertise that we have developed as a group over many years to create value together with our various stakeholders, and thereby achieve a low carbon / carbon neutral society.

Succeeded in prototyping a new type of SOEC, a key technology to realize "Innovative Methanation," which contributes to decarbonization of city gas

Getting to Know

Daigas Group's

Business Report

ESG Highlights

Corporate Governance

Financial Section

32

the Daigas Group

Co-creation of Value

Daigas×Stakeholders

Working with various stakeholders to contribute to the development of renewables

We have been conducting basic research on highly efficient and innovative methanation*1 technology, a promising technology for the decarbonization of city gas, and have succeeded for the first time in Japan in prototyping a practical-sized cell used for a new type of SOEC*2, which is the key to realizing this technology. We believe that this technology will have potential uses not just for the decarbonization of city gas, but also for the efficient manufacturing of carbon neutral fuels such as hydrogen and synthetic liquid fuels, and other substances. Accordingly, we will

accelerate our research and development efforts through industry-government-academia collaboration, and alliances with various business partners, as we aim to establish this technology around 2030.

*1 Methanation is a technology using hydrogen (H2) and carbon dioxide (CO2), instead of natural gas, to generate methane.

*2 Solid Oxide Electrolysis Cell: An electrolysis element that uses solid oxides. Electrolysis is performed on steam and CO2 at high temperatures.

In FY2021.3, we endeavored to contribute to the development of renewables by collaborating with various stakeholders. In terms of developing power sources, we acquired a solar power plant by investing in D&D Solar GK, which was established to hold solar power asset, together with Development Bank of Japan Inc. Additionally, we also focused on developing various power sources, including joint

Development of renewables (main projects since 2020)

Shiribetsu Wind Power Plant

investment in an onshore wind power project and participation in a biomass power project.

With regard to procuring electric power, we entered into a bilateral contract with West Holdings Corporation for the long-term procurement of electricity generated at thousands of small-scale solar power facilities to be developed by West HD in FY2022.3.

Conventional methanation with "water electrolysis / Sabatier reaction technology"

Conversion

efciency

Owing to the nature of the reaction, the heat

  • Wind power
  • Facility: 27 MW
  • Operation launch: September 2021 (Participated in March 2018)

Heat loss

Heat loss

5560%

Exothermic reaction

Exothermic reaction

Renewable

4H2O

Hydrogen

electric power

CO24H2

H2

Methane

Electric power

CH42H2O

→4H22O2

CH4

O

Exothermic heat

2

Exothermic heat

CO2

H

Water

Sabatier

electrolysis equipment

reaction equipment

Methanation reuses CO2 emitted from factories, etc. CO2 is also emitted when

customers burn city gas created with methanation, but these CO2 emissions are

offset by the equivalent utilized CO2 when producing the gas.

generated when producing hydrogen and methane with conventional methods of methanation is wasted. As a result, the energy conversion efciency from electric power to methane is limited to around 55-60%.

(Under construction) Noheji Mutsu Bay Wind Farm

  • Wind power
  • Facility: 40 MW
  • Stake: 39%
  • Operation launch: Scheduled in April 2022

Komatsu Solar Power Plant

  • Solar power
  • Facility: 13 MW
  • Stake: 20%
  • Operation launch: May 2018 (Participated in June 2021)

(Under construction)

Hirohata Biomass Power Plant

  • Biomass (imported wood chips, domestically

produced wood chips, palm kernel shell (PKS)) Facility: 75 MW

Misawa Solar Power Plant

  • Solar power

Facility: 10 MW

  • Stake: 20%

Operation launch: February 2017 (Participated in July 2021)

Shizukuishi Solar Power Plant

  • Solar power

Facility: 25 MW

  • Stake: 20%
  • Operation launch: October 2016 (Participated in June 2021)

Isoharacho Extra High Voltage Power Plant in Kitaibaraki, Ibaraki

Solar power

  • Facility: 35 MW
  • Stake: 50%
  • Operation launch: January 2021 (Participated in February 2021)

Innovative Methanation "SOEC Methanation Technology"

Effective utilization

Conversion

of waste heat

efciency is

SOEC methanation uses a system where the SOEC

  • Stake: 90%

Operation launch: Scheduled in August 2023

Haru Mito Solar Power Plant

  • Solar power

Facility: 9 MW

Stake: 20%

  • Operation launch: May 2015 (Participated in June 2021)

Endothermic

Exothermic

expected to be

reaction

reaction

Highly efcient

8590%

2O2

electrolysis at

high temperatures

Renewable ener

gy

e

4O2

Hydrogen

CO3H2

H

2

Methane

H2O

Vaporization

CH4H2O

CH4

heat

CO

CO23H2O

Exothermicheat

CO3H2

CO2

SOEC

Methanation

electrolysis equipment

reaction equipment

CO2 is also emitted when customers burn city gas created with methanation, but

these CO2 emissions are offset by the equivalent utilized CO2 when producing

the gas.

electrolysis equipment itself performs highly efcient electrolysis, and the heat generated by the methanation reaction equipment is effectively reused. As a result, it is expected to achieve energy conversion efciency of around 85-90%.

Kuwaharajou Mega Solar (No.4)

  • Solar power
  • Facility: 12 MW
  • Stake: 50%
  • Operation launch: April 2020

(Under construction)

Tokushima Tsuda Biomass Power Plant

  • Biomass (palm kernel shell (PKS), wood pellets)
  • Facility: 75 MW
  • Stake: 33.5%
  • Operation launch: Scheduled in March 2023

(Under construction) Hyuga Biomass Power Plant

  • Biomass (imported wood pellets, domestically produced wood chips, etc.)
  • Facility: 50 MW
  • Stake: 35%
  • Operation launch: Scheduled in November 2024

Biomass

Ichihara Biomass Power Plant

  • Biomass (palm kernel shell (PKS), wood pellets)
  • Facility: 50 MW
  • Stake: 39%
  • Operation launch: December 2020

(Under construction) Sodegaura Biomass Power Plant

  • Biomass (wood pellets)
  • Facility: 75 MW
  • Stake: 100%
  • Operation launch: Scheduled in July 2022

(Under construction) Tahara Biomass Power Plant

  • Biomass (wood pellets)
  • Facility: 75 MW
  • Stake: 25%
  • Operation launch: Scheduled in October 2024

Green Power Fuel

Procurement and sales of domestic wood for power generation

  • Stake: 55%
  • Business launch: Scheduled in the second half of 2022

Solar power Wind power Fuel procurement and sales

33 Daigas Group's Co-creation of Value

. Co-create Value for a Sustainable Future

Getting to Know

Daigas Group's

Business Report

ESG Highlights

Corporate Governance

Financial Section

34

the Daigas Group

Co-creation of Value

Scenario Analysis

Climate Change Initiatives

  • Recognition of and Action on Risks and Opportunities -

Backgrounds and Concepts

The Daigas Group has been working on climate change scenario analysis that is intended to be utilized as reference material in the evaluation and preparation of countermeasures, and to understand the impact of climate change on the Group's business on a medium- and long-term basis.

Using this analysis method based on scenarios established by an external authority (IEA), we assessed the impacts on the performances of our energy businesses (gas, electricity and related businesses in Japan and overseas) which are expected to experience the greatest impact from climate change among the Group's businesses, for the purpose of acquiring suggestions related to relevant factors and measures for mitigating/tapping into the impact. We

assumed a multi-track scenario that takes into account the progress of energy conservation and changes in the composition of power sources, etc., as follows.

We will steadily implement initiatives to increase the resilience of the Daigas Group's businesses, while applying the suggestions gained from scenario analysis to our evaluation of medium- and long-term business strategies. Moreover, as the global response to climate change continues to progress, the scenario's preconditions may also change in the future. We will continue to deepen our scenario analysis, renewing our assumptions in line with the latest conditions as necessary, taking into account scenarios established by external authorities.

Tackling global climate change is positioned as one of the "Sustainable Development Goals (SDGs)" adopted by the United Nations. Since the Paris Agreement came into force in November 2016, initiatives are being undertaken around the world. In Japan as well, tackling climate change is becoming increasingly important as Prime Minister Suga declared Japan's aim to realize a carbon neutral society by the year 2050 in his general policy speech on October 26, 2020.

For the Daigas Group, which is engaged primarily in the energy business, climate change represents an important management challenge, and initiatives to reduce CO2 emissions are an extremely important mission. In January 2021, the Daigas Group established and announced the "Daigas Group Carbon Neutral Vision," indicating its vision of how it strives to become carbon neutral by 2050. In March 2021, the Daigas Group

announced the "Daigas Group Medium-Term Management Plan 2023 'Creating Value for a Sustainable Future'" to further promote activities toward a low carbon / carbon neutral society.

Osaka Gas supports the TCFD recommendations, and utilizes them as indicators to validate its climate change response.

We also participate in the TCFD Consortium*, where discussions take place on efforts toward information disclosure on responses to climate change based on the TCFD recommendations.

  • Established on May 27, 2019, the consortium holds discussions led by private sectors on how companies can effectively disclose information on tackling climate change and how financial institutions can use the disclosed information to make appropriate investment decisions. From the government, the Ministry of Economy, Trade and Industry, the Financial Services Agency and the Ministry of the Environment also participate as observers in the consortium.
  • Japan's Final Energy Consumption of Gas, Electricity, etc. under Each Scenario

Gas Electricity Coal, crude oil, etc.

Mtoe

250

200

150

100

50

0

2020

2030

2040

2050

2020

2030

2040

2050

2020

2030

2040

2050

2 Scenario

2 Original Scenario

4 Scenario

Climate Change Governance

The Daigas Group regards climate change response as a key management issue. The Board of Directors, which decides on and supervises the important business activities of the Group as a whole, is responsible for the decision-making and supervision of projects involving climate change issues. At the "ESG Council (Executive Board)," which meets three times per year, executives deliberate on plans and reports of activities concerning ESG challenges, including climate change issues, under the supervision of the President.

In addition, the Daigas Group has also established the "ESG Committee," chaired by the "Head of ESG Promotion" (Vice President), the officer overseeing Daigas Group

sustainability activities, and composed of the heads of related business units as its members. The "ESG Committee" is held four times per year to formulate and advance plans for business activities concerning climate change response, and engages in Group-wide deliberation, coordination and supervision of issues such as the achievement of targets, risk management and response. Of these, the "ESG Committee" proposes or reports important issues to the Board of Directors, such as performance against ESG management targets, and business plans that are anticipated to be significantly affected financially by climate change.

Measures necessary to achieve the Paris

Technology progresses signicantly, and

Reduction in the necessary volume of CO2

Agreement target of 2°C are implemented, and

a signicant reduction in CO2 emissions

emissions is limited, despite the

a signicant reduction in CO2 emissions is

is achieved with only a moderate decline

implementation of new energy policies and

achieved. Electricity demand decreases only

in energy demand. The current levels of

related plans. Both electricity and gas

slightly, due to a rise in the electrication rate,

electricity and gas demand are

demand will increase slightly in Japan due

despite a signicant decline in energy demand.

maintained.

to a moderate decline in energy demand.

CO2 emissions reduction

CO2 emissions reduction

CO2 emissions reduction

2017→2050 80%*

2017→2050 80%*

2017→2050 50%*

* Proportional reduction in CO2 emissions achieved in FY2051.3 relative to FY2018.3

  • Climate Change Governance Organization Chart

Board of Directors

Proposal and Report

Making Important Decisions;

Supervision

Representative Director

and President

Submission and Report

Executive Board

(ESG Council)*

Report, etc.

ESG Committee

  • Board of Directors
    10 Directors (6 Internal Directors and 4 Outside Directors)
  • Executive Board (ESG Council)
    1 President and Executive Ofcer, 3 Vice Presidents (Executive Ofcers), and 6 Managing Executive Ofcers
    • In principle, it is held three times per year as "ESG Council."
  • ESG Committee
    Vice President and Executive Ofcer (Head of ESG Promotion) and heads of related business units, etc.

Recognition of Risks and Opportunities

Using a multi-track scenario analysis, we pinpointed anticipated risks and opportunities based on the environment surrounding the Daigas Group's energy businesses in Japan and abroad, evaluated these risks and opportunities and examined countermeasures, in terms of both the short and medium term prospect until 2030 and the long term prospect until 2050.

The Group is engaged in gas and electricity businesses, primarily in the Kansai area, which use natural gas as their main raw material and fuel. The external environment is undergoing various changes due to climate change. We have classified the major factors associated with these changes

into "transition risks" and "physical risks," and identified the major risks and opportunities. Significant risks for the Group related to climate change include the possibility that rising sea levels and natural disasters such as typhoons and torrential rains due to localized abnormal weather events, etc. may cause damage to our manufacturing equipment. In addition, it is possible that our businesses may be affected by significant increases in the carbon tax rate in Japan, or an increased desire among our customers to switch to non-fossil fuels. However, promotion of the development of renewables and decarbonization technologies also represents a significant opportunity for the Group.

35 Daigas Group's Co-creation of Value

Getting to Know

Daigas Group's

Business Report

ESG Highlights

Corporate Governance

Financial Section

36

the Daigas Group

Co-creation of Value

  • Evaluation of Risks and Opportunities and the Daigas Group's Responses

Impact in the case of the 2 scenario

Risks and Opportunities

and 2 original scenario

Short and Medium Term (~2030)

Long Term (~2050)

Introduction of a carbon tax

Risk

Carbon tax burden on gas and

Increasing burden with rising carbon

Policy and

thermal power plants

tax rates

legal

Support for mass introduction

Opportunity

Expansion of sales of electricity from

Reduction in costs of introducing renewable

of renewable energy sources

renewable energy sources

energy and expansion of sales

Development of renewable

Opportunity

Sustained sales of electricity from gas

Expansion of sales by making gas

Technology

energy and CCUS

and thermal power plants

carbon neutral

Development of Al/IoT

Opportunity

Participation in decentralized power

Expansion of decentralized power

sources aggregation business

sources aggregation business

Switch to non-fossil fuel

Risk

Fall in sales of gas and thermal power

Further fall in sales of gas and thermal power

energy

Market

Risk Management

When deciding on the Daigas Group's business plan and investment plan, the internal organizations responsible for the gas, electricity and other businesses analyze the risk factors and their impact on each business, distill and identify risks, and submit these together with other business risks, etc. to the Executive Board for deliberation. Climate change risks in the formulated plans are managed through a PDCA cycle, and are reported and followed up at the Environment Subcommittee, ESG Committee, and ESG Council (Executive Board). The PDCA (plan-do-check-act) cycle is used to manage such actions.

Decisions on climate-related risk and sustainability,

including investment decisions, are made by the Board of Directors and the Executive Board.

Matters related to climate change that were proposed or reported by March 31, 2021, included the following.

  • Decision on the Medium-Term Management Plan, incorporating the Carbon Neutral Vision
  • Recognition and disclosure of risks, opportunities and countermeasures related to climate change, based on scenario analysis
  • Monitoring of the results for indicators used to manage climate change response, etc.

Switch to LNG

Opportunity

Increase in demand due to the switch to

Increase in demand for LNG abroad

LNG in Japan and abroad

Focus of investment criteria

Fall in capital procurement power in

Decline in investment in fossil

Reputation

on low-carbon or

Risk

gas-related businesses

fuels businesses

decarbonized businesses

Financial impact: Small

Financial impact: Large

The Daigas Group's Response

Contribute to gas sales in Japan and abroad through fuel switching, etc.

Develop renewable energy power sources

Research, develop and verify

Promote the development and widespread use of high efciency,

Investigate and verify thermal power

methanation technology

compact cogeneration systems and fuel cells

generation with CCUS technology

Consider expanding the use of

Verify and participate in the decentralized power sources aggregation

Examine the use of carbon neutral fuels

biogas

business

Engage in dialogue with investors

Impact in the case of the 4 scenario

Risks and Opportunities

Short and Medium Term (~2030)

Long Term (~2050)

Physical

More serious and frequent

Risk

Increase in capital investment costs and

Increase in facilities countermeasure costs

(acute)

meteorological disasters

insurance premiums

Lower competitiveness due to gas price hike

Policy and

Policies to heighten

Opportunity

Increase in demand for disaster response

Expansion of decentralized

legal

resilience

equipment

energy systems

Increase in prices due to greater

Further price hikes and impediments

Movement to switch from

Risk

to procurement, due to increasing

competition in LNG procurement

Market

competition in LNG procurement

coal and crude oil to LNG

Opportunity

Increase in demand due to the switch to

Increase in LNG demand abroad

LNG in Japan and abroad

Financial impact: Small

Financial impact: Large

  • Climate-relatedRisk Management Structure

Board of Directors

Reports on important management issues, including climate-related issues, each half year

Proposal and Report

Making Important Decisions; Supervision

Representative Director and President

Submission and Report

ESG Council (Executive Board) 3 4

Proposals and reports on important management issues, including climate-related issues

Corporate

Report, etc.

Report,

Committees 3 4

Coordination,

Proposal ESG Committee

etc.

Environment

1 3 4

Subcommittee

Investment Evaluation

Report,

Committee

Deliberation,

Coordination, Promotion, etc.

etc.

Each organization and afliate of Osaka Gas

1

2

External verication (

3

)

Third-party verication of environmental performance data

  1. Plan formulation
    • Risks and opportunities associated with climate change
      • Response to cross-cutting environmental* issues
      • Formulation of environmental strategy*
      • Reection in activities of each organization
  2. Implementation/Operation
    • Actions for each target
    • Performance tracking for each indicator
  3. Checking
    • Report and follow-up for each target and performance at the Environment Subcommittee, ESG Committee, and ESG Council (Executive Board)
    • Third party verication of environmental performance data
  4. Review
    • Issue identication
    • Evaluation of countermeasures and improvements

The Daigas Group's Response

Diversify procurement sources

Implement disaster countermeasures for important buildings

Promote widespread use of disaster

Divide the supply areas into blocks

and facilities

response equipment

and operate facilities remotely

Promote the development and widespread use of high

Contribute to gas sales through fuel

efciency, compact cogeneration systems and fuel cells

switching, etc.

* The intensity of the colors used for risks and opportunities indicates their degree of nancial impact (the 2 original scenario and 4 scenario have been used to calculate quantitative impact)

Initiatives Ensuring Resiliency for a Decarbonized Society

Indicators and Targets

The Daigas Group will proceed to contribute to radically reducing CO2 emissions and realizing a decarbonized society, through initiatives such as energy conservation, the advanced use of natural gas, and the widespread use of renewable energies.

Field

Item

Target

Target FY

Climate Change

CO2 emissions across the Group

Zero effective CO2

2051.3

GHG emissions (Scopes 1, 2 and 3)

emissions

CO2 emissions

Proportion of renewable energy sources in domestic

Nearly 50%

2031.3

electric power business

reductions from our

own business activities

Contribution to more widespread use of renewable energy

5 GW

2031.3

Securing a stable supply of energy, a core social infrastructure, is one of the major climate change-driven challenges facing society as a whole. By continuing to provide a range of services, including multiple sources of clean energy such as gas and electricity utilizing decarbonization technologies, disaster response equipment, and the widespread and advanced use of energy, the Daigas Group will strive to contribute to society in terms of stable supply and

resilience for a decarbonized society.

In response to the growing global trend towards decarbonization, we will engage in activities to contribute to reducing CO2 emissions across society, promote the advanced use of gas, and advance initiatives to develop decarbonization technologies, aiming to balance business growth with the stability of the core social infrastructure.

CO2 emissions

Promote carbon reduction and decarbonization through more widespread use of

high efciency, high value-added equipment with natural gas, renewable energy, etc.

Each year

reductions at customer

Efcient operation of LNG tankers and expanded use of low emission vehicles, etc.

until

sites and through the

Provide environmental value through the dissemination of high-quality solutions in

2031.3

value chain

the elds of information, real estate, and materials

Contribution to CO2

Contribution to CO2

emissions reduction (t-CO2)

10 million tons

2031.3

emissions reductions

(Including reductions contributed at customer sites and

(relative to FY 2017.3)

across society

overseas)

37 Daigas Group's Co-creation of Value

. Co-create Value for a Sustainable Future

Establishing Lifestyles and Businesses Adjusted to the New Normal

Getting to Know

Daigas Group's

Business Report

ESG Highlights

Corporate Governance

Financial Section

38

the Daigas Group

Co-creation of Value

Key Initiatives Maintain and Expand Customer Base, and Enhance Customer Relationship Management

DX for solutions in the era of new normal

What We

We globally provide services as optimal solutions to each customer's adjustment of their

Aim to Be

lifestyles and businesses to the new normal.

Provide solutions globally

Achieve 10 million customer accounts

Lifestyle

Business

Offer optimal customer experience

Provide work environment that increases

business efciency

for each customer

Comfortable work environment with services of

Home services and energy that meet

air conditioning and ventilation.

increased and diversied customers'

Optimal control and operational efciency with

demand at home.

digital technology and data utilization.

One of the Daigas Group's strengths has been our network of in-person customer contact points based on our approximately 200 service chain partners across our supply area. By combining this real network with digital contact points, we aim to offer a customer experience of the highest quality through an omnichannel strategy, such as offering services at the most appropriate timing for our customers. As part of our efforts to achieve this target, in FY2022.3 we will launch the "Sumai LINK Platform (tentative name)," a life service platform that will enable customers of all generations to digitally access services offered by the Company and our partner companies.

We aim to increase the user base of devices such as the "ENE-FARM" residential fuel cell system in the "Tsunagaru de series" of IoT-compatible gas devices, the "ECO-JOZU" highly energy efficient water heater, and the "Sumapiko" alarm device to 300,000 units by FY2024.3. To that end, we will utilize the strengths of our group companies with unique technology in the digital sphere such as the OGIS-RI Group and Palette Cloud, Inc., while also utilizing the capabilities of the Daigas Group as a group, including coordination with partner companies such as Bitkey Inc. Additionally, we will take steps to grow earnings by offering the expertise we obtain in the course of the above measures to companies outside the Group.

Concept of Life Service Platform

(Scheduled for launch in FY2022.3)

Customers of

Customers of

"My Osaka Gas"

Business Partners

Offering one-stopservice with joint account and combinedbilling

"Sumai LINK Platform"(tentative name)

Products and services offered byus and our partners

Lifestyle support

E-commerce

(housekeeping and health)

(daily necessities and foods)

Target of IoT-connected gas appliances (residential)

Approx. 100

Approx. 300

thousand units

thousand units

End of FY2021.3

FY2024.3 Forecast

High value-added solutions

Urban development

Environmental solutions

Lifestyle and businesses solutions in the era of the new normal

DigitizationInnovation

Strengths of the Daigas Group

Customer accounts and direct customer touch points

Various gas and electricity rate plans to meet

different customer lifestyles

Technologies to develop appliances and facilities

Data assets accumulated through services and

maintenance

The Daigas Group has focused on expanding its range of value-added rate plans and its services related to household affairs and residential facilities in a way that suits to customers' lifestyles and needs, such as through the Style Plans and With Plans. Looking ahead, we aim to quickly achieve our target of 10 million customer accounts prior to FY2031.3 by expanding services in new fields.

In our ESP (energy service provider) business, which we also aim to expand, we plan to provide onestop solutions for services better suited to the commercial and industrial customers in the age of the new normal, such as ventilation and air conditioning. For low carbon / carbon neutral needs,

Number of customer accounts

Approx. 9.4 million

10 million

End of FY2021.3

Aim to achieve

the target early

ESP target

Increase prot by approximately 50% (FY2021.3→FY2024.3)

we are offering solutions such as D-Solar service and fuel conversion to natural gas for in-house power generation and heat equipment.

In the Osaka Gas Chemicals Group, we will proceed with the establishment of systems for the development of new products of fine materials for the photoelectron materials market, while continuing to develop activated carbon and the wood preservative and coating agent "Xyladecor" as high- value-added products. Additionally, in the Osaka Gas Urban Development Group, we will promote advanced urban development, including the "Umekita" project near Osaka Station, which is linked to regional and real estate development initiatives on a group-wide basis. In housing development, the group continues increasing the ratio of properties in the Greater Tokyo area through Prime Estate Co., Ltd., its acquired company in Yokohama. Additionally, we have been making efforts to expand into new business domains such as logistics which has been growing in response to the expansion of e-commerce business due to the COVID-19 pandemic. In future, we will continue to create high-quality lifestyles and business environments for customers through real estate solutions that fulfill the needs of customers and society.

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Osaka Gas Co. Ltd. published this content on 23 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 October 2021 15:33:08 UTC.


ę Publicnow 2021
All news about OSAKA GAS CO., LTD.
12/02Gas Development Impossible Without Appropriate Pricing - NNPC
AQ
11/25Crude Oil Prices Steady as Market Anticipates OPEC Reaction to Release of Strategic Res..
MT
11/16Chevron shuts Australian Gorgon LNG Train 1 after minor gas leak
RE
11/08Jedlix B.V. announced that it has received ?5 million in funding from Osaka Gas Co., Lt..
CI
10/28INPEX to Implement Joint Business with Idemitsu Kosan in Norway
AQ
10/24SOJITZ : Osaka Gas join hands in rooftop solar business in Vietnam
AQ
10/22OSAKA GAS : Integrated report 2021(2/3)
PU
10/22OSAKA GAS : Integrated report 2021(1/3)
PU
10/22OSAKA GAS : Integrated report 2021(3/3)
PU
10/22Osaka Gas Singapore Pte. Ltd. announced that it expects to receive SGD 4.1 million in f..
CI
More news
Financials
Sales 2022 1 423 B 12 548 M 12 548 M
Net income 2022 68 529 M 604 M 604 M
Net Debt 2022 624 B 5 503 M 5 503 M
P/E ratio 2022 11,3x
Yield 2022 2,95%
Capitalization 776 B 6 863 M 6 842 M
EV / Sales 2022 0,98x
EV / Sales 2023 0,98x
Nbr of Employees 20 941
Free-Float 96,5%
Chart OSAKA GAS CO., LTD.
Duration : Period :
Osaka Gas Co., Ltd. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends OSAKA GAS CO., LTD.
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 7
Last Close Price 1 866,00 JPY
Average target price 2 311,43 JPY
Spread / Average Target 23,9%
EPS Revisions
Managers and Directors
Masataka Fujiwara President & Representative Director
Takehiro Honjo Chairman
Issei Nomura Team Manager-Consolidated Administration
Hideo Miyahara Independent Outside Director
Kazutoshi Murao Independent Outside Director
Sector and Competitors
1st jan.Capi. (M$)
OSAKA GAS CO., LTD.-11.65%6 863
NATURGY ENERGY GROUP, S.A.28.96%26 569
ATMOS ENERGY CORPORATION-4.98%12 008
CHINA GAS HOLDINGS LIMITED-52.73%10 255
APA GROUP-1.87%7 937
PETRONAS GAS BERHAD-2.44%7 835