Results Bulletin:3rd Quarter ended December 2022

January 31, 2023

Consolidated Financial Results Bulletin for the 3rd Quarter Ended December 31, 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:

February 14, 2023

Scheduled date of the start of dividend payments:

-

Preparation of 3Q earnings presentation material (yes/no): Yes

Holding of 3Q earnings announcement (yes/no):

Yes (for institutional investors)

(Amounts are rounded down to the nearest million yen)

1. Consolidated Performance for 3rd Quarter (from April 1, 2022 to December 31, 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

Nine months ended

2,300,194

63.9%

235,692

341.5%

238,298

283.6%

168,097

264.7%

Dec. 31, 2022

Nine months ended

1,403,292

13.7%

53,378

-19.5%

62,121

1.9%

46,088

8.6%

Dec. 31, 2021

Note: Total comprehensive income

Nine months ended December 31, 2022: 252,736 million yen (666.8%) Nine months ended December 31, 2021: 32,961 million yen (34.5%)

	Profit per share	Diluted profit
	per share
Nine months ended	386.93 yen	-
Dec. 31, 2022
Nine months ended	104.81 yen	-
Dec. 31, 2021

Note: Figures for the nine months ended December 31, 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 Dec. 31, 2022	3,649,413	1,484,037	39.9%
As of Mar. 31, 2022	3,187,627	1,281,150	39.3%

Reference: Shareholders' equity

As of December 31, 2022: 1,456,764 million yen As of March 31, 2022: 1,251,781 million yen

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.

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,		-	32.50			-
2023
FY2022 ending Mar. 31,								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
Full-year	3,377,000	56.7%	331,000	159.6%

Ordinary profit

325,000	138.1%

Net profit	Profit
attributable to
per share
owners of parent
236,000	146.6%	543.54 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: 101 (Increased by 1 company and decreased by 13 companies)
   Number of subsidiaries and affiliates accounted for by equity method: 15 (Decreased by 1 company)
2. Application of accounting treatment peculiar to quarterly consolidated financial statement preparation (yes/no): Yes
   Note: Please see page 9 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		Dec. 31, 2022	434,875,059		Mar. 31, 2022	440,996,559
	(including treasury stock):
2)	Number of shares of treasury stock		Dec. 31, 2022	1,452,421		Mar. 31, 2022	1,448,431
	at end of period:
3)	Average number of shares during period:		Apr. - Dec. 2022	434,443,941		Apr. - Dec. 2021	439,714,082

• 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.
  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	3,018,800	56.3%	231,200	345.3%	228,300	375.8%	163,900	333.7%	377.49 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 3rd quarter	2
(2)	Future outlook	4
2. Consolidated Financial Statements and Main Notes	5
(1)	Consolidated balance sheets	5
(2)	Consolidated statements of income and comprehensive income	7
	Consolidated statement of income	7
	(Nine months ended December 31, 2022)
	Consolidated statement of comprehensive income	8
	(Nine months ended December 31, 2022)
(3)	Notes on consolidated financial statements	9
	(Note on going concerns' premise)	9
	(Additional information)	9
	(Significant changes in shareholders' equity)	9
	(Application of accounting treatment peculiar to quarterly consolidated financial statement preparation)	9
	(Change in accounting policies)	10
	(Changes in presentation)	10

1

1. Overview of Business Performance, etc.

1. Overview of business performance of the 3rd 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 development," 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 nine months ended December 31, 2021, using the new reporting segments.

Nine months ended December 31, 2022			(Unit: million yen)
		Energy solution	Network	Overseas	Urban
		development
Sales	FY2022	2,111,447	244,204	128,191	46,264
(% of total)	(83.4%)	(9.7%)	(5.1%)	(1.8%)
Operating	FY2022	1,904,781	263,379	69,777	33,862
expenses	(% of total)	(83.8%)	(11.6%)	(3.1%)	(1.5%)
Segment	FY2022	206,696	-19,175	63,994	12,996
profit/loss	(% of total)	(78.1%)	(-7.2%)	(24.2%)	(4.9%)

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/loss of consolidated financial statements plus or minus investment income or loss on equity method.

Comparison with the nine months ended December 31, 2021			(Unit: million yen)
		Gas	Electric	Overseas	Energy-	Real estate	Others
		power	related
	FY2022	1,548,331	599,683	128,211	260,065	46,264	73,804
	(% of total)	(58.3%)	(22.6%)	(4.8%)	(9.8%)	(1.7%)	(2.8%)
Sales	FY2021	907,844	308,615	62,430	227,548	43,348	73,781
(% of total)	(56.0%)	(19.0%)	(3.8%)	(14.0%)	(2.7%)	(4.5%)
	Amount of change	640,487	291,068	65,781	32,517	2,916	23
	(Rate of change)	70.6%	94.3%	105.4%	14.3%	6.7%	0.0%
	FY2022	1,396,421	582,834	68,330	245,639	33,689	65,918
	(% of total)	(58.3%)	(24.3%)	(2.9%)	(10.3%)	(1.4%)	(2.8%)
Operating	FY2021	875,625	296,988	44,450	216,622	31,245	72,424
expenses	(% of total)	(57.0%)	(19.3%)	(2.9%)	(14.1%)	(2.0%)	(4.7%)
	Amount of change	520,796	285,846	23,880	29,017	2,444	-6,506
	(Rate of change)	59.5%	96.2%	53.7%	13.4%	7.8%	-9.0%
	FY2022	151,910	16,849	65,461	14,425	13,169	7,916
	(% of total)	(56.4%)	(6.2%)	(24.3%)	(5.3%)	(4.9%)	(2.9%)
Segment	FY2021	32,218	11,626	21,709	10,925	12,818	1,415
profit	(% of total)	(35.6%)	(12.8%)	(23.9%)	(12.0%)	(14.1%)	(1.6%)
	Amount of change	119,692	5,223	43,752	3,500	351	6,501
	(Rate of change)	371.5%	44.9%	201.5%	32.0%	2.7%	459.3%
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/loss of consolidated financial statements plus or minus investment income or loss on equity method.
2. Figures for the nine months ended December 31, 2021, represent figures after retroactive application following a change in accounting policies.

2