Results Bulletin:1st Quarter ended June 2022

July 27, 2022

Consolidated Financial Results Bulletin for the 1st Quarter Ended June 30, 2022 (J-GAAP)

Tokyo Gas Co., Ltd.

Securities code:

9531

Stock listings:

(URL https://www.tokyo-gas.co.jp/IR/english/index.html)

Tokyo Stock Exchange, Nagoya Stock Exchange

Representative:

Mr. UCHIDA Takashi, Representative Corporate

Executive Officer, President and CEO

Contact:

Mr. KOMORI Rikiya, Chief Manager,

Location of head office: Tokyo

Consolidated Settlements Sect.

Scheduled date of the filing of quarterly report:

August 15, 2022

Scheduled date of the start of dividend payments:

-

Preparation of 1Q earnings presentation material (yes/no): Yes

Holding of 1Q earnings announcement (yes/no):

Yes (for institutional investors)

(Amounts are rounded down to the nearest million yen)

1. Consolidated Performance for 1st Quarter (from April 1, 2022 to June 30, 2022)

(Unit: million yen)

(1) Consolidated Business Performance

(% of change from the corresponding period of previous year)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Three months ended

609,939

52.0%

51,207

182.5%

57,700

259.8%

38,438

267.0%

Jun. 30, 2022

Three months ended

401,146

-3.5%

18,127

-34.0%

16,035

-42.9%

10,473

-36.0%

Jun. 30, 2021

Note: Total comprehensive income

Three months ended June 30, 2022: 58,721 million yen (83.5%)

Three months ended June 30, 2021: 31,997 million yen (102.1%)

	Profit per share	Diluted profit
	per share
Three months ended	88.06 yen	-
Jun. 30, 2022
Three months ended	23.80 yen	-
Jun. 30, 2021

Note: Figures for the three months ended June 30, 2021, represent figures after retroactive application following a change in accounting policies.

(2) Consolidated Financial Position

				(Unit: million yen)
		Total assets	Total net assets	Equity ratio
As of Jun. 30, 2022		3,381,128	1,306,160	38.0%
As of Mar. 31, 2022		3,241,525	1,281,150	38.6%
Reference: Shareholders' equity
As of June 30, 2022: 1,283,228 million yen	As of March 31, 2022: 1,251,781 million yen

Note: Figures as of March 31, 2022, represent figures after retroactive application following a change in accounting policies.

2. Dividend

			Dividend per share (Unit: yen)
		End of 1Q	End of 2Q		End of 3Q		End of 4Q	Annual
FY2021 ended Mar. 31,		-	30.00			-		35.00	65.00
2022
FY2022 ending Mar. 31,		-
2023
FY2022 ending Mar. 31,			32.50		-		32.50	65.00
2023 (Forecast)
Note: Revision to the dividend forecast that has been disclosed lastly: No

3. Consolidated Results Forecast for FY2022 ending March 31, 2023 (April 1, 2022 - March 31, 2023)

(Unit: million yen) (% of change from the corresponding period of previous year)

	Net sales		Operating profit	Ordinary profit	Net profit attributable	Profit
		to owners of parent	per share
Full-year	2,948,000		36.8%	140,000	9.9%	127,000	-6.9%	92,000	-3.9%	211.89 yen

Notes: 1. Revision to the consolidated results forecast that has been disclosed lastly: Yes

2. The year-on-year percentage changes represent the percentage changes calculated by retroactively applying the change in accounting policies to the figures for the fiscal year ended March 31, 2022.

*Notes

1. Significant changes in consolidated subsidiaries (changes in specified subsidiaries resulting in change of scope of consolidation during the quarter) (yes/no): No
   Reference: Scope of consolidation and application of equity method
   Number of consolidated subsidiaries: 102 (Decreased by 11 companies)
   Number of subsidiaries and affiliates accounted for by equity method: 16
2. Application of accounting treatment peculiar to quarterly consolidated financial statement preparation (yes/no): Yes
   Note: Please see page 10 of the Attachment, "2. Consolidated Financial Statements and Main Notes: (3) Notes on consolidated financial statements (Application of accounting treatment peculiar to quarterly consolidated financial statement preparation)" for details.
3. Change in accounting policies or estimates and retrospective restatements

1. Change in accounting policies in accordance with revision of accounting standards: No
2. Change in accounting policies other than item 1) above: Yes
3. Change in accounting estimates: No
4. Retrospective restatements: No

1. Number of issued shares (common stock)

							(Unit: share)
1)	Number of issued shares at end of period		Jun. 30, 2022	440,996,559		Mar. 31, 2022	440,996,559
	(including treasury stock):
2)	Number of shares of treasury stock		Jun. 30, 2022	7,567,683		Mar. 31, 2022	1,448,431
	at end of period:
3)	Average number of shares during period:		Apr. - Jun. 2022	436,481,214		Apr. - Jun. 2021	440,036,974

• Quarterly review procedures by a certified public accountant or an audit firm do not apply to quarterly consolidated financial results bulletins.
• Explanation related to appropriate use of results forecasts and other items warranting special mention
• 1. The consolidated and non-consolidated results forecasts include numerous elements of uncertainty, including the impact of the COVID-19 pandemic and the Russia-Ukraine situation. Therefore, the forecasts are subject to drastic changes depending on future development. For details of the above forecasts, please refer to "1. Overview of Business Performance, etc. (2) Future outlook" on page 4 of the Attachment and "1. Overview of Business Performance, etc. (3) Revisions to FY2022 results forecasts" on page 5 of the Attachment.
  2. The information related to this Financial Results will be posted on the Web site of the Company.

Non-Consolidated Results Forecast for FY2022 ending March 31, 2023 (April 1, 2022 - March 31, 2023)

(Unit: million yen) (% of change from the corresponding period of previous year)

	Net sales		Operating profit	Ordinary profit	Net income	Profit
		per share
Full-year	2,651,300	37.3%	53,100	2.4%	60,800	26.9%	41,800	10.6%	96.27 yen

Notes: 1. Revision to the non-consolidated results forecast that has been disclosed lastly: Yes

2. The year-on-year percentage changes represent the percentage changes calculated by retroactively applying the change in accounting policies to the figures for the fiscal year ended March 31, 2022.

Contents of Attachment
1. Overview of Business Performance, etc.............................................................................................................................	2
(1)	Overview of business performance of the 1st quarter..............................................................................................	2
(2)	Future outlook .............................................................................................................................................................	4
(3)	Revisions to FY2022 results forecasts ........................................................................................................................	5
2. Consolidated Financial Statements and Main Notes ........................................................................................................	6
(1)	Consolidated balance sheets .......................................................................................................................................	6
(2)	Consolidated statements of income and comprehensive income .............................................................................	8
	Consolidated statement of income .............................................................................................................................	8
	(Three months ended June 30, 2022)
	Consolidated statement of comprehensive income ...................................................................................................	9
	(Three months ended June 30, 2022)
(3)	Notes on consolidated financial statements .............................................................................................................	10
	(Note on going concerns' premise) ...........................................................................................................................	10
	(Additional information)...........................................................................................................................................	10
	(Significant changes in shareholders' equity)..........................................................................................................	10
	(Application of accounting treatment peculiar to quarterly consolidated financial statement preparation)....	10
	(Change in accounting policies)................................................................................................................................	11

1

1. Overview of Business Performance, etc.

1. Overview of business performance of the 1st quarter
   In November 2021, the Company formulated the Compass Action, a detailed roadmap for achieving Compass 2030, the Group's management vision, and on April 1, 2022, transitioned to a holding company structure. Following this development, the Company has decided to change its reporting segments from the five segments of "gas," "electric power," "overseas," "energy related," and "real estate," which it had used until FY2021, to four reporting segments of "energy solution," "network," "overseas," and "urban business," starting in FY2022.
   The year-on-year comparison is based on the previous reporting segments since it is difficult to create data of net sales and profits of the three months ended June 30, 2021, using the new reporting segments.

Three months ended June 30, 2022			(Unit: million yen)
		Energy solution	Network	Overseas	Urban business
Sales	FY2022	558,660	88,635	35,041	14,997
(% of total)	(80.1%)	(12.7%)	(5.0%)	(2.2%)
Operating	FY2022	519,776	86,307	20,169	11,124
expenses	(% of total)	(81.6%)	(13.5%)	(3.2%)	(1.7%)
Segment	FY2022	38,891	2,328	16,022	4,080
profit	(% of total)	(63.4%)	(3.8%)	(26.1%)	(6.7%)

Note: Figures for sales include internal transactions. Figures for operating expenses do not include expenses that cannot be allocated to specific segments. Figures for segment profit are adjusted against the amount based on operating profit of consolidated financial statements plus or minus investment income or loss on equity method.

Comparison with the three months ended June 30, 2021			(Unit: million yen)
		Gas	Electric	Overseas	Energy-	Real estate	Others
		power	related
	FY2022	403,160	153,341	35,043	76,829	14,997	22,597
	(% of total)	(57.1%)	(21.7%)	(5.0%)	(10.9%)	(2.1%)	(3.2%)
Sales	FY2021	266,213	81,231	20,573	69,247	14,013	24,009
(% of total)	(56.0%)	(17.1%)	(4.3%)	(14.6%)	(2.9%)	(5.1%)
	Amount of change	136,947	72,110	14,470	7,582	984	-1,412
	(Rate of change)	51.4%	88.8%	70.3%	10.9%	7.0%	-5.9%
	FY2022	371,419	149,241	19,670	73,524	11,072	18,970
	(% of total)	(57.7%)	(23.2%)	(3.1%)	(11.4%)	(1.7%)	(2.9%)
Operating	FY2021	251,999	77,676	15,318	67,064	9,941	24,904
expenses	(% of total)	(56.4%)	(17.4%)	(3.4%)	(15.0%)	(2.2%)	(5.6%)
	Amount of change	119,420	71,565	4,352	6,460	1,131	-5,934
	(Rate of change)	47.4%	92.1%	28.4%	9.6%	11.4%	-23.8%
	FY2022	31,740	4,100	16,523	3,305	4,132	3,634
	(% of total)	(50.1%)	(6.5%)	(26.0%)	(5.2%)	(6.5%)	(5.7%)
Segment	FY2021	14,213	3,554	5,772	2,182	4,296	-886
profit	(% of total)	(48.8%)	(12.2%)	(19.8%)	(7.5%)	(14.7%)	(-3.0%)
	Amount of change	17,527	546	10,751	1,123	-164	4,520
	(Rate of change)	123.3%	15.4%	186.2%	51.4%	-3.8%	-
Notes:

1. Figures for sales include internal transactions. Figures for operating expenses do not include expenses that cannot be allocated to specific segments. Figures for segment profit are adjusted against the amount based on operating profit of consolidated financial statements plus or minus investment income or loss on equity method.
2. Figures for the three months ended June 30, 2021, represent figures after retroactive application following a change in accounting policies.

2