Tokyo Gas Co., Ltd. · TSE:9531
Tokyo Gas — FY2024 Earnings Presentation
33 slides from Tokyo Gas's earnings presentation, Apr 28, 2025
Slide 1: FY2024 Financial Results
Lf FY2024 Financial Results ended March, 2025 April 28, 2025 "E TOKYO GAS TSE:9531
Slide 2: Executive Summary
Executive Summary Note:The consolidated results for FY2024 and FY2023 is disclosed in accordance with the application of Generally Accepted Accounting Principles in the U.S. (U.S. GAAP) from International Financial Reporting Standards (IFRS) by Tokyo Gas America and its consolidated subsidiaries fro
Slide 3: FY2024 results showed a decline in both sales and profit
Our results for FY2024 showed a decline in both sales and profit mainly due to sliding time lag effect in the gas business in the previous fiscal year and one-time costs in the electricity business, both in the Energy Solution segment. Net sales decreased by 256 hundred million yen. This was mainly
Slide 4: Profit attributable to owners of parent decreased
913 hundred million yen to 741 hundred million yen. 3
Slide 5: FY2025 full year forecast: increase in sales and profit
For the FY2025 full year, we forecast an increase in both sales and profit (profit attributable to owners of parent). We have not changed our economic framework, which serves as the basis for our forecast, since the announcement at the end of March. Our forecast foreign exchange rate is 150 yen to t
Slide 6: FY2025 ROE forecast above medium-term plan target
Our forecast for FY2025 ROE is 8.1%, which is above our medium-term management plan’s target, due to the profit increase and equity capital control. 4
Slide 7: Action For Continuous Corporate Value Enhancement
Action For Continuous Corporate Value Enhancement 5 H Initiatives implemented of FY2024 Business portfolio management + Steady increase in the number of retail electricity customers Strengthening our US shale gas business +Real estate divestment +Acceleration of sale of share cross-holdings (listed
Slide 8: Consolidated Financial Results
o2 FY2024 Consolidated Financial Results ended March, 2025 "R TOKYO GAS
Slide 9: FY2024 Consolidated Results vs. FY2023
vs. FY2023 FY2024 Consolidated Results Sales, Interest, etc. (Apr. 1, 2024 -Mar. 31, 2025) 7H (unit : 100 million yen) FY2024 FY2023 Change % Net sales 26,368 26,624 -256 -1.0 Operating profit 1,330 2,171 -841 -38.7 Segment profit (operating profit + equity 1,386 2,202 -816 -37.0 method profit/loss)
Slide 10: Net sales and segment profit by segment
Slide 8 shows net sales by segment and segment profit, which is operating profit plus equity method profit/loss, and changes thereof. Slide 9 shows a profit analysis of each segment. 8
Slide 11: Segment profit analysis
The 794 hundred million yen profit decline in the Energy Solution segment was primarily due to a 500 hundred million yen drop in gross margin in the city gas business due to sliding time lag effect and a 114 hundred million yen profit decrease in the electricity business primarily owing to a decreas
Slide 12: City gas sales volume
City gas sales volume in FY2024 decreased by 0.8% to 11,215 million m3, which in total is a slight decrease, mainly due to a fall in demand from residential customers as a result of high temperatures and a drop in demand from industrial customers, which offset an increase in wholesale volume resulti
Slide 13: Electricity sales volume
Total electricity sales volume in FY2024 decreased by 8.0% to 23,440 million kWh. Retail electricity sales volume rose by 7.4% mainly due to higher demand owing to an increase in the number of customers, while the sales volume to wholesale etc. and others fell by 25.2%. 11
Slide 14: FY2025 Full Year Forecast
03 FY2025 Full Year Forecast "R TOKYO GAS 12
Slide 15: Consolidated Forecast
F 25 Consolidated Forecast Sales, Interest, etc. (Apr. 1, 2025 - Mar. 31, 1 3 Hl (i {unit : 100 milion yen) FY2025 FY2024 Forecast Results Gianee % Net sales 27,540 26,368 1,172 4.4 Operating profit 1,590 1,330 260 19.5 Segment profit (operating profit + equity method profit/loss) oon 1,386 an 212 O
Slide 16: Segment net sales and profit forecasts
This slide shows our segment net sales and profit forecasts and changes from the previous year's results. 14
Slide 17: Main changes in segment profit forecast
This slide shows the main changes in segment profit. We expect a mild year-on-year increase in the profit of the Energy Solution segment. This is due to a recovery in the city gas business from the impact of high temperatures in the previous fiscal year and an increase in profit in the electricity b
Slide 18: Segment Information: Energy Solution
Segment Information: Energy solution Summary of Results 16 (Unit: 100 milion yen) FY2025 Fy2024 Change % Net sales 23,699 23,404 295 13 [city gas 14,196 16,164 -1,968 “12.2 [Electric Power 6,698 5,981 717 12.0 ‘Segment Profit (Operating profit + Equity income/loss of subsidiaries) pa 1217 2 oF [city
Slide 19: Gas sales volume forecast
The next two slides show our forecast for gas sales volume and electricity sales volume, which serve as the basis for our forecast for the Energy Solution segment. We expect city gas sales volume as a whole to decrease by 1.7%, or 190 million m3, mainly due to a decline in demand from industrial cus
Slide 20: Electricity sales volume forecast
This is our electricity sales volume forecast. We expect total sales volume to increase by 17.7% to 27,582 million kWh due to an expected increase in retail sales volume as a result of an increase in the number of contracts and by capturing demand in wholesale etc. 18
Slide 21: Segment information: capex and investment plans
The segment information slides also include our capital expenditure and investment plans, as well as major initiatives. 19
Slide 22: Segment Information: Overseas business
Segment Information: Overseas business Summary of Results Fv2025 Fy2024 Change % (Unit: 100 million yen) Net sales 2,354 1,812 542 29.9 Segment Profit (Operating profit + Equity method profit/loss) bial 228 nied fae Segment Assets 12,470 11,953, 517 43 ROA (%) 5.5 19 3.6 = Depreciation 893 845, 48 5
Slide 23: Segment Information: Urban Development
Segment Information: Urban Developme Summary of Results 218 (Unit: 100 million yen) FY2025 Fy2024 Change % Net sales“? Total 832 (1,108) 778 (798) 54 (310) 6.9 (38.8) [Rear estate sales 214 (490) 190 (210) 24 (280) 12.2 (132.7) ‘Segment Profit"! (Operating profit + Equity Total 125 (343) 240 (254) -
Slide 24: Key indicators versus medium-term plan targets
This slide shows the key indicators versus medium-term management plan targets. 22
Slide 25: Segment ROA
This slide shows segment ROA. 23
Slide 26: Shareholder returns
In terms of shareholder returns, we are currently conducting share buybacks of 120 billion yen in the first half for the purpose of controlling equity capital, as we announced in March. However, we have decided to pay an annual dividend of 80 yen per share, an increase of 10 yen per share, as shareh
Slide 27: Reference materials
These reference materials include supplementary information on our initiatives in “realizing management mindful of capital costs and stock prices,” as well as the economic frame sensitivity table, crude oil prices and exchange rates, and information on major overseas investments. 25
Slide 28: Economic framework and Pension assets
Econo! framework and Pension assets 26 Hl Economic framework Economic framework £2023, Fy203 4 Fry2073 Exchange rate (¥/$) (262) 152.62 144.58 Crude oil price ($/bbl) ere 82.41 85.99 Avg. air temp (°C) Crp 17.6 17.5 Pension assets Pension assets FY2024 FY2023 FY2022 Investment yield (costs deducted)
Slide 29: Gas Gross Margin Sensitivity to Changes in Price and Exchange Rate
Gas Gross Margin Sens‘ Impact of rising JCC (japan Crude Cocktail Prices) by $1/bbl ity to Change i Price and Exchange Rate Impact on earnings (Unit: 100 million yen) 1Q 2Q 3Q 4Q Full year 1Q -1 -5 +4 +2 0 2Q = -2 6 +5 -3 Period 3Q = = -2 -8 -10 4Q — — _ -1 = Full year -1 7 4 -2 -14 Impact of deprec
Slide 30: Crude oil price - Exchange rate
Crude oil price - Exchange rate Crude oil price (Japan Crude Cocktail Prices) ($/bb!) 120.00 110.00 100.00 90.00 80.00 70.00 60.00 50.00 40.00 N A ¢ ey £ £ ef £ SF SK KF SK ¥ 3? & 2 a oe OHFY 2024 meeFY2023 me F¥2022 £ eS & « Exchange rate (¥/$) 160.0 155.0 150.0 145.0 140.0 135.0 130.0 125.0 120.0
Slide 31: Progress of our actions
[Progress of our actions] <PBR - PER> <ROA - ROE> SROA, ROE before Y2003 1s before retrospective application Fen Achieve PAR of more than one early and PER (%) aw. move to a higher level | ae 180 18.0 1.60 2500; Kt 1.40 oT 1.20 1.00 15.00 0.80 0.00 0.60 10.00 0.40 5.00 0.20 0.00 ¢ 2 ss Fs ¢ ¢ 0.00 P
Slide 32: Overseas Projects
Overseas Projects 260 ° Area_No__Country Subject Main Business Participation year Ford Upstream Shale gas 2016 TG Natural Resources Upstream Shale gas 2017 TGES America Energy Service 2015 North America @ usa Birdsboro Downstream Natural gas power 2017 Aktina Downstream Solar power 2020 Longbow Down
Slide 33: Cautionary Statement regarding Forward-looking Statements
"F TOKYO GAS < 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 t