Tokyo Gas : Financial Results for FY2020 2Q ended September 2020

October 29, 2020

Consolidated Financial Results Bulletin for the 2nd Quarter Ended September 30, 2020 (J-GAAP)

Tokyo Gas Co., Ltd.

Securities code:	9531
(URL https://www.tokyo-gas.co.jp/IR/english/)
Representative:	Mr. UCHIDA Takashi, President
Contact:	Mr. KOMORI Rikiya, Chief Manager,
	Consolidated Settlements Sect.

Scheduled date of the filing of quarterly report: Scheduled date of the start of dividend payments: Preparation of 2Q earnings presentation material (yes/no): Holding of 2Q earnings announcement (yes/no):

Stock listings:

Tokyo Stock Exchange, Nagoya Stock Exchange

Location of head office: Tokyo

November 13, 2020

November 27, 2020

Yes

Yes (for institutional investors)

(Amounts are rounded down to the nearest million yen)

1. Consolidated Performance for 2nd Quarter (from April 1, 2020 to September 30, 2020)

											(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
	Six months ended	828,071		-9.1%	51,644		11.9%	49,760	2.9%	29,350	3.5%
	Sep. 30, 2020
	Six months ended	910,481		9.4%	46,169		124.4%	48,347	145.4%	28,349	5.3%
	Sep. 30, 2019
Note: Total comprehensive income
	Six months ended September 30, 2020: 22,952 million yen (4.8%)	Six months ended September 30, 2019: 21,894 million yen (-9.6%)
		Profit per share		Diluted profit
			per share
	Six months ended	66.55 yen				-
	Sep. 30, 2020
	Six months ended	63.89 yen				-
	Sep. 30, 2019
(2) Consolidated Financial Position
									(Unit: million yen)
		Total assets			Total net assets	Equity ratio
	As of Sep. 30, 2020	2,746,284		1,183,973		42.1%
	As of Mar. 31, 2020	2,537,724		1,159,228		45.2%
Reference: Shareholders' equity
	As of September 30, 2020: 1,157,038 million yen	As of March 31, 2020: 1,147,836 million yen

2. Dividend

			Dividend per share (Unit: yen)
		End of 1Q	End of 2Q		End of 3Q		End of 4Q	Annual
FY2019 ended Mar. 31,		-	30.00			-		30.00	60.00
2020
FY2020 ending Mar. 31,		-	30.00
2021
FY2020 ending Mar. 31,						-		30.00	60.00
2021 (Forecast)
Note: Revision to the dividend forecast that has been disclosed lastly: No

3. Consolidated Results Forecast for FY2020 ending March 31, 2021 (April 1, 2020 - March 31, 2021)

(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	1,774,000		-7.9%	87,000	-14.3%	80,000	-22.1%	56,000	29.1%	126.98 yen

Note: Revision to the consolidated results forecast that has been disclosed lastly: Yes

In the first-quarter Financial Results Bulletin released on July 29, 2020, we only disclosed operating profit forecasts, as it was difficult to reasonably quantify the impact of the global outbreak of the new coronavirus (COVID-19) on the Group's business.

In view of trends based on the accumulated performance data for the 2nd quarter consolidated cumulative period, we forecasts that the business performance will gradually recover toward the end of fiscal 2020, and as it has become possible to reasonably calculate all items including sales volume, net sales, operating expenses, and non-operating income or loss, we are disclosing them as described above.

*Notes

(1) Significant changes in consolidated subsidiaries (changes in specified subsidiaries resulting in change of scope of consolidation during the quarter) (yes/no): Yes

Newly included: 5 (Names) Castleton Resources LLC, CCI Oil and Gas II LLC,

Castleton Commodities Upstream II LLC, CCI East Texas Upstream LLC, Castleton TVL LLC

Reference: Scope of consolidation and application of equity method

Number of consolidated subsidiaries: 105 (Increased: 24, decreased: 1)

Number of equity method affiliates: 15 (Increased: 1, decreased: 1)

1. Application of accounting treatment peculiar to quarterly consolidated financial statement preparation (yes/no): Yes
   Note: Please see page 8 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.
2. 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: No
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		Sep. 30, 2020	442,436,059		Mar. 31, 2020	442,436,059
	(including treasury stock):
2)	Number of shares of treasury stock		Sep. 30, 2020	1,429,243		Mar. 31, 2020	1,424,746
	at end of period:
3)	Average number of shares during period:		Apr. - Sep. 2020	441,009,114		Apr. - Sep. 2019	443,745,348

• 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. As the COVID-19 pandemic has not yet abated, consolidated and non-consolidated results forecasts include numerous elements of uncertainty. Therefore, the forecasts are subject to drastic changes depending on future developments, which we will reflect on the forecasts as needed. For details of the above forecasts, please refer to "1. Overview of Business Performance, etc. (2) Future outlook" on page 3 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 FY2020 ending March 31, 2021 (April 1, 2020 - March 31, 2021)

(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	1,584,700	-11.4%	66,000	6.4%	65,000	-4.9%	52,000	-8.3%	117.91	yen

Note: Revision to the non-consolidated results forecast that has been disclosed lastly: Yes

In the first-quarter Financial Results Bulletin released on July 29, 2020, we had not determined non-consolidated results forecasts as it was difficult to reasonably quantify the impact of the global outbreak of COVID-19 on the Group's business.

In view of trends based on the accumulated performance data for the 2nd quarter consolidated cumulative period, we forecasts that the business performance will gradually recover toward the end of fiscal 2020, and as it has become possible to reasonably calculate all items including sales volume, net sales, operating expenses, and non-operating income or loss, we are disclosing them as described above.

Contents of Attachment
1. Overview of Business Performance, etc.............................................................................................................................	2
(1)	Overview of business performance of the 2nd quarter ............................................................................................	2
(2)	Future outlook .............................................................................................................................................................	3
2. Consolidated Financial Statements and Main Notes ........................................................................................................	4
(1)	Consolidated balance sheets .......................................................................................................................................	4
(2)	Consolidated statements of income and comprehensive income .............................................................................	6
	Consolidated statement of income .............................................................................................................................	6
	(Six months ended September 30, 2020)
	Consolidated statement of comprehensive income ...................................................................................................	7
	(Six months ended September 30, 2020)
(3)	Notes on consolidated financial statements ...............................................................................................................	8
	(Note on going concerns' premise) .............................................................................................................................	8
	(Additional information).............................................................................................................................................	8
	(Significant changes in shareholders' equity)............................................................................................................	8
	(Application of accounting treatment peculiar to quarterly consolidated financial statement preparation)......	8

- 1 -