Tokyo Gas Co., Ltd. · TSE:9531

Tokyo Gas — FY2022 2Q Earnings Presentation

31 slides from Tokyo Gas's earnings presentation, Oct 27, 2022

1. Slide 1: FY2022 2Q Financial Results

   TSE:9531 FY2022 2Q Financial Results ended September, 2022 October 27, 2022

2. Slide 2: FY2022 Consolidated Financial Results

   01 FY2022 Consolidated Financial Results ended September, 2022 Note: Figures for the fiscal year ended March 31, 2022, represent figures after retroactive application and restatement following a change in accounting policies and changes in presentation, respectively. Copyright© TOKYO GAS Co., Ltd. A

3. Slide 3: Highlights: Sales Up, Profit Up

   FY2022 2Q Consolidated Results (Apr. 1, 2022 – Sep. 30, 2022) vs. FY2021 2Q 3 Highlights: Sales Up, Profit Up (+/- indicate impact on profit, billion yen) Net sales ＋494.5 Increase in city gas unit price due to resource costs adjustment, etc. Operating -443.6 Impact from the increase in crude oil pr

4. Slide 4: City Gas sales volume

   FY2022 2Q Consolidated Gas Sales Volume/ Number of Customers vs. FY2021 2Q 4 City Gas sales volume: Number of customers(City Gas), LNG sales volume, Average temperature （ Unit： mil. ㎥） FY2022 FY2021 ＋233mil.㎥ (＋4.1%) 6,000 5,884 2Q 2Q Change including temperature effect 5,651 Number of customers for

5. Slide 5: Electricity sales volume

   FY2022 2Q Consolidated Electricity Sales Volume/ Number of Customers vs. FY2021 2Q 5 Electricity sales volume： New electricity retail customers won by Tokyo Gas （ Unit：mil. kWh ） Quarter (thousands) Cumulative (thousands) +3,773mil. kWh 300 3,190 3,500 18,000 3,090 (+28.5%) 17,018 2,934 3,014 2,876

6. Slide 6: FY2022 2Q Results: Sales and Operating Profit by Business Segments (New Segments)

   【New Segments】 FY2022 2Q Results : Sales and Operating Profit/Loss by Business Segments vs. FY2021 2Q 6 (unit : billion yen) Segment Profit(Operating profit Net sales ※5 + Equity income/loss of subsidiaries) FY2022 2Q FY2021 2Q FY2022 2Q FY2021 2Q Results Results Change ％ Results Results Change ％ En

7. Slide 7: FY2022 2Q Results: Ordinary Profit Analysis (New Segments)

   【 New Segments 】 FY2022 2Q Results : Ordinary Profit Analysis vs. FY2021 2Q 7  Increase in city gas gross margin +¥65.3 bn: Energy Change in volume, etc. +8.2 (incl. change due to temp effect +0.9), solution sliding time lag effect +57.1 (Net sales) ＋¥251.6 bn: Change in volume, etc. +16.4, sliding

8. Slide 8: FY2022 2Q Results: Sales and Operating Profit by Business Segments (Former Segments)

   【 Former Segments 】 FY2022 2Q Results : Sales and Operating Profit/Loss by Business Segments vs. FY2021 2Q 8 (unit : billion yen) Segment Profit(Operating profit Net sales + Equity income/loss of subsidiaries) FY2022 2Q FY2021 2Q FY2022 2Q FY2021 2Q Results Results Change ％ Results Results Change ％

9. Slide 9: FY2022 Full Year Forecast

   02 FY2022 Full Year Forecast Note: Figures for the fiscal year ended March 31, 2022, represent figures after retroactive application and restatement following a change in accounting policies and changes in presentation, respectively. Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

10. Slide 10: Highlights: Sales Up, Profit Up

    FY2022 Consolidated Forecast (Apr. 1, 2022 – Mar. 31, 2023) 10 Highlights: Sales UP, Profit Up (vs. Previous Forecast) vs. Previous Forecast Net sales +325 Increase in city gas unit price due to resource costs adjustment, etc. Operating -315 Impact from the increase in crude oil prices, etc. expense

11. Slide 11: City Gas sales volume forecast

    FY2022 Full Year Forecast Consolidated Gas Sales Volume/ Number of Customers 11 City Gas sales volume: Number of customers(City Gas), LNG sales volume,Average temperature （ Unit： mil. ㎥） VS. Previous Forecast Forecast Previous Change FY2021 Change Forecast Results 15,000 ＋155mil.㎥ (＋1.2%) including

12. Slide 12: Electricity sales volume forecast

    FY2022 Full Year Forecast Consolidated Electricity Sales Volume/ Number of Customers 12 Electricity sales volume： New electricity retail customers won by Tokyo Gas （ Unit：mil. kWh ） Cumulative (1,000s) VS. Previous Forecast 35,000 34,442 34,358 4,000 3,800 +84mil. kWh （As of Mar.2023 ） (+0.2%) 3,500

13. Slide 13: FY2022 Full Year Forecast: Segments vs. Previous Forecast

    【New Segments】 FY2022 Full Year Forecast: Sales and Operating Profit/Loss by Business Segments vs. Previous Forecast 13 (unit : billion yen) Segment Profit(Operating profit Net sales *4 + Equity income/loss of subsidiaries) FY2022 Previous FY2022 Previous Forecast Forecast Change ％ Forecast Forecast

14. Slide 14: FY2022 Forecast: Ordinary Profit Analysis vs. Previous Forecast

    【 New Segments 】FY2022 Forecast: Ordinary Profit Analysis vs. Previous Forecast 14 Energy solution  Increase in city gas gross margin +¥10.5 bn: -¥4.1bn Change in volume, etc. +3 (incl. change due to temp effect -1.2), (-4.3%) sliding time lag effect +7.5 FY2022 (Net sales) +¥151.2 bn: Change in vo

15. Slide 15: FY2022 Full Year Forecast: Segments vs. FY2021 Results

    【New Segments】 FY2022 Full Year Forecast: Sales and Operating Profit/Loss by Business Segments vs. FY2021 Results 15 (unit : billion yen) Segment Profit(Operating profit Net sales *5 + Equity income/loss of subsidiaries) FY2022 FY2021 FY2022 FY2021 Forecast Results Change ％ Forecast Results Change ％

16. Slide 16: FY2022 Forecast: Ordinary Profit Analysis vs. FY2021

    【 New Segments 】FY2022 Forecast: Ordinary Profit Analysis vs. FY2021 Results 16  Increase in city gas gross margin +¥20.7 bn: Change in volume, etc. -1.7 (incl. change due to temp effect +0.7), Energy sliding time lag effect +22.4 solution (Net sales) +¥503.6 bn: Change in volume, etc. -16.6, slidi

17. Slide 17: Factors for Changes from FY2021 Ordinary profit

    FY2022 Consolidated Forecast (Apr. 1, 2022 – Mar. 31, 2023) vs. FY2021 17 Factors for Changes from FY2021 Ordinary profit (billion yen) 37.8 -15.2 42.9 Worsening of pension Sliding time lag actuarial effect differences Approx. -40.0 160.0 9.0 Rising in JEPX Approx. -10.0 9.6 Increase in profit price

18. Slide 18: FY2022 Uses of Cash Flow (Capex, Investments and financing)

    FY2022 Uses of Cash Flow（Capex , Investments and financing） 18 (Unit: billion yen) Previous FY2021 Forecast Main Items Change % Change ％ Forecast Results Capital Expenditure Energy solution 108.4 106.6 1.8 1.6 67.9 40.5 59.4 Production facilities : 14.0 Other Production facilities, etc. City gas(exc

19. Slide 19: Key Indicators (Consolidated)

    Key Indicators (Consolidated) 19 (Unit: billion yen) FY2022 FY2021 FY2020 Forecast Results Results ※2 Total assets (a) 3,540.0 3,187.6 2,738.3 Shareholders’ equity (b) 1,390.0 1,251.7 1,153.8 Shareholders’ equity ratio (b)/(a) 39.3% 39.3% 42.1％ Interest-bearing debt (c) 1,329.0 1,220.5 1,065.9 D/E r

20. Slide 20: Reference Materials

    03 Reference Materials Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

21. Slide 21: Gas Gross Margin Sensitivity to Crude Oil Price and Exchange Rate

    Gas Gross Margin Sensitivity to Change in Crude Oil Price and Exchange Rate 21 Impact of rising JCC（Japan Crude Cocktail Prices) by $1/bbl (Unit: billion yen) Impact on earnings 3Q 4Q Full year 3Q -0.1 -1.0 -1.1 Period 4Q ― -0.1 -0.1 Full year -0.1 -1.1 -1.2 Impact of depreciation of the yen by ¥1/$

22. Slide 22: Crude oil price, Exchange rate

    Crude oil price・Exchange rate 22 Crude oil price（Japan Crude Cocktail Prices） ($/bbl) 120.00 110.00 100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 FY2022 FY2021 FY2020 Exchange rate (¥/$) 145.0 140.0 135.0 130.0 125.0 120.0 115.0 110.0 105.0 100.0 FY2022 FY2021 FY2020 Copyright© TOKYO GAS Co

23. Slide 23: Key Topics in FY2022 by 2Q: Business & financial topics

    Key Topics in FY2022 by２Q (Excerpted from Press Releases) 23 (1) Business & financial topics *1 *2 Press releases issued by Tokyo Gas Engineering Solutions Press releases issued by Tokyo Gas Network Launch of Non-FIT/FIP renewable energy balancing service (Apr.18） Number of electric power contracts

24. Slide 24: Key Topics in FY2022 by 2Q: Nonfinancial ESG topics

    Key Topics in FY2022 by２Q (Excerpted from Press Releases) Major related 24 (2) Nonfinancial ESG topics *1 Press releases issued by Tokyo Gas Engineering Solutions *2 Press releases issued by Tokyo Gas Network materiality Transition to a holdings group structure Governance & compliance Selection as a

25. Slide 25: Key Topics in FY2022 by 2Q; Tokyo Gas Group Materialities

    Key Topics in FY2022 by 2Q (Excerpted from Press Releases) 25 Conclusion of Basic Agreement on efforts to streamline infrastructure business and solve community Establishment of relationships challenges by Eight Private Business Operators with infrastructure management functions in Ibaraki with comm

26. Slide 26: ESG-related topics: agreements with local municipalities

    Key Topics in FY2022 by 2Q (Excerpted from Press Releases) ESG-related topics: Establishment of relationships with communities, climate change, 26 safety & disaster preparedness Tokyo Gas signs more comprehensive agreements with local municipalities and wholesale gas suppliers In its Compass 2030 Gr

27. Slide 27: Cooperation with Hadano City and Hadano Gas

    Key Topics in FY2022 by 2Q (Excerpted from Press Releases) 27 Cooperation with local municipalities and wholesale gas suppliers - Hadano City, Hadano Gas - (1) Signing of Comprehensive Agreement: Hadano City, Hadano Gas and Tokyo Gas (Nov. 22, 2021) (2) Agreement on Joint Verification of Solar PPA B

28. Slide 28: Completion of Yaesu Energy Center

    Key Topics in FY2022 by 2Q (Excerpted from Press Releases) ESG-related topics: Establishment of relationships with communities, climate change, 28 safety & disaster preparedness Completion of Yaesu Energy Center, a new energy hub to enhance disaster preparedness and eco friendliness, through collabo

29. Slide 29: Overseas Projects

    Overseas Projects 29 9 1 2 4 5 7 3 6 8 Area No Country Subject Main Business Participation year Eagle Ford Upstream Shale gas 2016 TG Natural Resources Upstream Shale gas 2017 1 TGES America Downstream Energy Service 2015 U.S.A Birdsboro Power Plant Downstream Natural gas power 2017 North America Ak

30. Slide 30: Changes in Disclosable Segments

    Changes in Disclosable Segments (mapping of key changes) 30 ・In accordance with our approach to accounting management, we changed our classifications for legally disclosable segments in order to better align them with management practices under the holdings-type group structure instituted in FY2022

31. Slide 31: Cautionary Statement regarding Forward-looking Statements

    < Cautionary Statement regarding Forward‐looking Statements > Statements made in this presentation with respect to Tokyo Gas’s present plans, forecasts, strategies and beliefs, and other statements herein that are not expressions of historical fact are forward‐looking statements about the future per

Tokyo Gas — FY2022 2Q Earnings Presentation on 6ix