Toho Gas Group

Business Plan for Year

Ending March 31, 2020

March 29, 2019

Toho Gas Co., Ltd.

C o n t e n t s

Introduction

1.Primary Measures

Strategy 1 Further Growth of the City Gas Business Strategy 2 Development into a Total Energy Provider Strategy 3 Taking on New Scopes

Reinforcing the Business Foundation of the Toho Gas Group

2. Numerical Plan

Energy Sales

Investment Plan

2

3

3

8

12

15

19

20

21

Earning forecasts and other forward-looking statements in this document are management's current views and beliefs in accordance with data currently available, and are subject to a number of risks, uncertainties and other factors that may cause actual results to differ materially from those projected.

1

Introduction

The energy industry has faced a drastic transitional period on the back of rapid progress in reduction of carbon emissions and digital technology that affects customers' lifestyles and the industrial structure in addition to the intensifying competition due to full liberalization of retail markets.

Under these circumstances, the Group formulated in November 2018 the new Medium-term Management Plan for the FY2019 to 2021 (hereinafter, the "Medium-term Plan") toward the achievement of sustainable growth.

In FY2019, the first year of the Medium-term Plan, we will take a step forward for future growth in the period of the Management Plan and beyond by developing concrete measures and realizing steady implementation of our strategies.

Overall perspective of the Medium-Term Management Plan (Target period: FY2019 - 2021)

Go with EnergyーGo beyond Energy

Strategy 3

Strategy 2

Taking on new

scopes

Strategy 1

Development into

Further growth

a total energy

provider

of the city gas

business

Reinforcing the business foundation of the Toho Gas Group

In line with the efforts for further growth in the city gas business, the Medium-term Plan focuses on the development to become a total energy provider of new services together with city gas, LPG and electricity, while accelerating structural reforms for the future by enhancing the Group's businesses and developing new businesses.

2

1. Primary Measures

|Strategy 1|Further Growth of the City Gas Business

(1)Efforts to Support the Lives of People in the Region

(2)Efforts to Support Businesses in the Region

(3)Stable Energy Procurement at a Reasonable Price

(4)Expansion of Natural Gas Service Areas and Secure Stable Supply and Safety

3

1. Primary Measures |Strategy 1 Further Growth of the City Gas Business|

(1)Efforts to Support the Lives of People in the Region

As a general partner of customers' daily lives, we will offer proposals for a comfortable and ecological life, provide a wide range of services tailored to the various lifestyles of customers, and enhance the strength of the Group as "the region's best security and service system."

Propose comfortable and ecological life

Promote measures such as expanding sales of ENE FARM for spread of smart house and zero-net- energy housing.

On April 1, we started marketing ENE FARM equipped with a power generation continuation function in the event of power outage.

Spread of ENE FARM

thousand

Sales exceeded

20

20,000 units in

10

February 2019.

0

2008

2013

2018

ENE FARM cumulative unit sales

Power is generated even in the event of a power outage

Electricity

Hot water

Hot water supply

City gas

ENE FARM

Provide a wide range of life support services

Continue to expand our living-related service menu, including "Raku Raku Kurashi Support (a service aimed at making customers' lives comfortable)", "Raku Raku Maintenance (a gas equipment maintenance service)" and "Raku Raku Lease (a gas quipment lease service)."

Expand our living-related businesses including housing renovation through concerted efforts of the Toho Gas Group and ENEDO service shops.

Expand living-related services

In March 2019, the preferential treatment services for members of "Raku Raku Kurashi Support" was expanded.

Further enhancement of services will be promoted going forward.

The region's best security and service system

High quality services including a trouble-shooting maintenance and repair service offering on-site repair of gas equipment up to 9 p.m. and a Living Safety Inspection service is provided.

Fully implement "Living Safety Inspection service"

Check gas equipment and plumbing

fixtures at home free of charge.

Support safe and comfortable lives.

4

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

Attachments

  • Original document
  • Permalink

Disclaimer

TOHO GAS Co. Ltd. published this content on 29 March 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 29 March 2019 10:41:15 UTC