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1 Investors Guide 27 Tokyo Gas Co., Ltd.

2 Appendix Unit conversion bbl Barrel 1 bbl=159 cf Cubic foot 1 cf=.283 m 3 MJ Megajoule 1 MJ=1 6 J= kcal Btu British thermal unit 1 Btu=1.54 kj=.252 kcal MMBtu=1 million Btu= Btu =1,54 MJ=252, kcal 25 m 3 of natural gas 25m 3 LNG (liquefied natural gas) Volume conversion 1 ton 1,22 m 3 of natural gas million ton 1.22 billion m 3 of natural gas Calorie conversion 1 ton 1.4 kl of crude oil=8.8 bbl of crude oil LNG tank with a capacity of 2, kl 92, tons of LNG 112 million m 3 of natural gas LNG carrier with a capacity of 145, m 3 67, tons of LNG 81 million m 3 of natural gas The raw data for graphs or tables that show this mark can be downloaded from the Tokyo Gas website. ( Note: Although unaudited, all financial information in this investors guide is based on certified financial statements.

3 Corporate Profile Tokyo Gas Co., Ltd. is based in metropolitan Tokyo and the Kanto region, where demand for energy is growing strongly. As Japan s largest gas company, Tokyo Gas serves about 1 million customers. To make the most of business opportunities such as progress in deregulation and more intense competition among energy suppliers, the Tokyo Gas Group works on the Mediumterm management plan, FY26 21 from April 26. Under this plan, the Tokyo Gas Group, as the leading total energy business, with gas as its cornerstone, aims to achieve sustainable growth and development and to meet the expectations of its customers and shareholders Contents Tokyo Gas City Gas Business Production Data Energy Statistics Gas Rate Data Gas Resource Data Gas Sales Volume Gas Demand for Air Conditioning Gas Demand for Power Generation Breakdown of Gas Sales Volume R&D Data Personnel Data Capital Expenditures and Depreciation Bonds, Loans and Debts Financial Data (Segment Information) Financial Data (Profitability and Growth) Financial Data (Efficiency and Soundness) Financial Data (Performance Indicators) Ten-year Consolidated Balance Sheets Ten-year Consolidated Statements of Income Three-year Consolidated Statements of Cash Flows Ten-year Nonconsolidated Balance Sheets Ten-year Nonconsolidated Statements of Income Accounting Cost Structure of Gas & By-products Comparison with Other Energy Utilities Main Consolidated Subsidiaries Milestones Investor Information

4 Tokyo Gas City Gas Business Tokyo Gas Group Service Area Nagano Shizuoka Minami Fuji Line Gunma Gunma Line Yamanashi Saitama Yokohama Line Kanagawa New Negishi Line Tochigi Central Line Tokyo Negishi LNG Terminal Ohgishima LNG Terminal Tochigi Line Kisarazu Rinkai Line Ibaraki Chiba Sodegaura LNG Terminal Chiba-Kashima Line Production Data Japan s LNG Terminals Tokyo Gas LNG Terminals Negishi LNG Terminal Ohgishima LNG Terminal Sodegaura LNG Terminal Start of operation 1966/1 1998/1 1973/11 Import volume million ton/year million ton/year million ton/year 4991 Tokyo Gas LNG terminals handle approximately 16% of total import volume to Japan. 16 2

5 Wholesale Customers by pipelines (24 entities) 24 Start of supply Entity Chiba Gas 1968/9 Narashino City 1974/1 Atsugi Gas 1974/12 Daito Gas 1975/9 Keiyo Gas 1978/3 Tsukuba Gakuen Gas 1979/1 Bushu Gas 1985/8 Akishima Gas 1988/9 Tosai Gas 1988/12 Tobu Gas 1989/12 Otaki Gas 1991/9 Higashinihon Gas 1993/7 Start of supply Entity Washimiya Gas 1995/12 Hatano Gas 1996/4 Odawara Gas 2/8 Ota City Gas 21/12 Buyo Gas 23/4 Tochigi Gas 24/9 Sano Gas 24/1 Kitanihon Gas 26/4 Nippon Gas 26/4 Kanto Natural Gas Development 26/12 Tojo Gas 27/1 Ina City Gas 27/1 Wholesale Customers of LNG (11 entities) 11 Tokyo Gas Group service area Service areas of wholesale customers Tokyo Gas high-pressure transmission pipelines High-pressure transmission pipelines of other companies Pipeline jointly owned with Shizuoka Gas Company and Teikoku Oil Co., Ltd. Scheduled to operate in October Scheduled to operate in October Scheduled to operate in March Scheduled to operate in December Scheduled to operate in October Scheduled to operate in October Start of supply Entity z Shoei Gas 1975/12 x Miho Gas 1977/1 c Joban City Gas 1987/1 v Seibu Gas 1988/7 b Sobu Gas 1991/11 n Iwaki Gas 1992/5 m Tobu Gas 1998/7, Chichibu Gas 24/4. Shibukawa Gas 24/5 Joban Kyodo Gas 26/3 1 Hokkaido Gas 25/11 Storage capacity Vaporization capability Berth Other features 1,155,S 1 unit Japan s first LNG terminal since November 1969, jointly operated with Tokyo Electric Power 57 t/h Company (TEPCO), incorporating LNG shipping facilities 1155S ,S 1 unit Most advanced LNG terminal 64 t/h 6S 1 1,61,S 3 units One of the world s largest LNG terminals, jointly operated with TEPCO, 9 t/h incorporating LNG shipping facilities 161S 3 3

6 Energy Statistics Share of Natural Gas in Total Primary Energy Supply JAPAN 14.6% Natural Gas 45.2% Petroleum 22.9% Coal 13.2% Nuclear 4.1% Hydro WORLD 23.7% Natural Gas 35.8% Petroleum 28.4% Coal 5.8% Nuclear 6.3% Hydro Source: BP Statistical Review of World Energy, June Primary Energy Supply Outlook for Japan (%) Hydro, Geothermal Nuclear Natural Gas Coal LPG Petroleum Source: Report by Energy Supply & Demand Subcommittee of Advisory Committee for Natural Resources & Energy for METI (Projection based on increased use of fuel cells and on-site generation) Breakdown of GDP of Japan by Major Areas (Year ended March 31, 25) 253 Gas Sales Volume of Tokyo Gas by Sector and in Japan (Year ended March 31, 27) (Million m 3, 45 MJ/m 3 ) % Tokyo Area 15.8% Osaka Area 9.7% Nagoya Area 3,356 Residential 2,83 Commercial 5,232 Industrial 1,77 Wholesale Total 58.4 trillion 584,111 Japan 36,294 Tokyo Gas 13,188 Source: Cabinet Office, Government of Japan The Tokyo area includes Tokyo, plus Kanagawa, Saitama, Chiba, Ibaraki, Tochigi, Gunma, Yamanashi and Nagano prefectures. The Osaka area includes Osaka, as well as Hyogo, Kyoto, Shiga, Nara and Wakayama prefectures. The Nagoya area includes Aichi, Gifu and Mie prefectures. The above graph represents nonconsolidated data. 4

7 Liberalization Schedule Before Study of full liberalization Tokyo Gas 3% 1 million m 3 or more 53% 5, m 3 or more 65%, m 3 or more Major users Large-scale factories and commercial complexes Medium-sized factories/hotels Small-scale factories/hospitals Electricity Industry 26% 2, kw or more 4% 5 kw or more 63% 5 kw or more Gas Rate Data Average Gas Rates (Approximation) ( /m 3 ) Residential Gas Rate Adjustment System Fluctuation of average gas resource cost Maximum 57,46 +1,8 Adjustment of specific unit price m 3 / 1, 1,, 1,, 1,, Regulated area Commercial Industrial Power Generation m 3 /year Liberalized area, m 3 or more + 1, month Difference from standard average unit price of 35,91/ton ( /t) 3591 Nonadjustment band The scheme provides for adjustment of the specific unit price component of gas rates at three-month intervals in correspondence with fluctuation in gas resource costs owing to factors such as exchange rates and crude oil prices. 31 Monthly Gas Rates at Three Major Gas Companies ( ) 13 9, 8, 7, 4/ 1~3 4/ 4~6 4/ 7~9 4/ 1~12 5/ 1~3 5/ 4~6 5/ 7~9 5/ 1~12 6/ 1~3 6/ 4~6 6/ 7~9 6/ 1~12 Tokyo Gas Osaka Gas Toho Gas 7/ 1~3 Calculations are based on the use of 5 m 3 per month. 5 3 Rates for Tokyo Gas and Osaka Gas are calculated on the basis of 45 MJ per cubic meter, and for Toho Gas, 46.5 MJ per cubic meter / 4~6 7/ 7~9 Gas Rate Revision Tokyo Gas TEPCO Osaka Gas Execution Average rate Execution Average rate Execution Average rate date of change date of change date of change 1988/1/ /4/ /1/ /12/ /2/ /1/ /2/ % 4.18% 2.48% 2.% 3.2% 5.18%.28% 1988/1/ /4/ /1/ /2/ /1/ /4/ /1/ /4/ % 3.11% 5.39% 4.2% 5.32% 7.2% 5.21% 4.1% Average rate of change means total average of regulated area. 1988/1/ /4/ /1/ /2/ /3/ /2/ /11/ % 4.27% 2.37% 3.61% 5.4%.87% 2.33% 5

8 Gas Resource Data LNG Imports (1, tons) At March Australia Malaysia Brunei Indonesia Qatar Alaska Egypt Oman Total ,13 1, , , ,5 Imports from Egypt and Oman are spot contract and not on a long-term basis ,43 1, , ,339 3,415 1, , ,647 3,784 1, , ,197 3,998 1, , ,58 3,816 1, , ,395 (33.3%) 3,39 (32.5%) 1,514 (14.9%) 626 (6.1%) 598 (5.9%) 281 (2.8%) 28 (2.7%) 189 (1.9%) 1,191 (.%) LNG Project Project name Annual contracted quantity (1, tons) Inception of Contract Duration Contract type Haul distance (km) km Alaska (15+5) years + (15+5) years (~29/3) Ex-Ship 6, Brunei 1, years + 2 years (~213/3) Ex-Ship 4, Malaysia I I 2, years +15 years (~218/3) Ex-Ship, FOB 4, NWS (North West Shelf) years (~29/3) 2293 Ex-Ship 6,8 Indonesia years (~213/12) FOB 4,6 Malaysia II II years (~215/3) Ex-Ship 4,6 Qatar years (~221/12) Ex-Ship 12, Malaysia III III years (~224/3) Ex-Ship, FOB 4,4 NWS Expansion 1, years (~229/3) FOB 6,8 Darwin 1, years (~222/12) FOB 5,7 Sakhalin II II 1, years (~231) FOB 1,8 Gorgon 1, years (~235) FOB 6,9 Pluto 1,51, years (~225) Ex-Ship 6,9 LNG Carriers Owned and Managed by Tokyo Gas Capacity & Ownership Name type Built Operator Shipbuilder share Use The first ship LNG Flora NYK Line Kawasaki Shipbuilding 1993/3 Corporation 1% 125, m 3 1 MOSS The second ship LNG Vesta Mitsui O.S.K. Mitsubishi Heavy 1994/6 Line Industries 35% 2 The third ship Energy Frontier 23/9 % 3 The fourth ship Energy Advance 145, m 3 25/3 Mitsui O.S.K. 9% 4 MOSS Line The fifth ship Energy Progress 26/11 Kawasaki Shipbuilding % 5 Corporation The sixth ship Undecided 28/3 7% 6 The seventh ship Undecided 153, m 3 NYK Line MOSS 29/3 7% 7 125, m 3 of LNG nearly equals 58, tons of LNG or 7 million m 3 of natural gas , m 3 of LNG nearly equals 67, tons of LNG or 81 million m 3 of natural gas , m 3 of LNG nearly equals 7, tons of LNG or 86 million m 3 of natural gas Indonesia NWS Expansion Malaysia, Darwin Sakhalin Others 6

9 Tokyo Gas Long-term LNG Imports Alaska Sakhalin Tokyo Qatar Malaysia Brunei Indonesia Pluto Gorgon Darwin NWS New LNG Project Existing LNG Project All Japan LNG Prices (Trade statistics) (US$/MMBtu) JCC Prices (Trade statistics) (US$/barrel) Money Exchange Data (Yen/US$) /3 /3 1/3 2/3 3/3 4/3 5/3 6/3 7/3 9 2/4 3/4 4/4 5/4 6/4 7/3 Source: Bloomberg World LNG Import Volume (billion m 3 ) Japan Korea Taiwan Other Asia U.S. Other North and South America Europe LNG Imports by Utility Companies (For March 31, 27) (1, tons) 273 Tokyo Electric Power 17,47 Kansai Electric Power 4,227 Chubu Electric Power 1,271 Tokyo Gas 1,191 Osaka Gas 7,244 Toho Gas 2,974 Others 1,932 Japan 63,39 Source: Trade statistics, The Federation of Electric Power Companies of Japan and official data Source: Data are calcurated from Cedigaz report. 7

10 Gas Sales Volume Gas Sales Volume (Results and Forecasts) (million m 3 ) 3 15, 1, 5, Estimated Residential Industrial Commercial Public and Medical Wholesale Number of Customers (thousands) 11, 1, 9, 8, 7, 6, Estimated At March 31 Gas Sales Volume (million m 3 ) Residential Industrial Commercial Public and Medical Wholesale Total ,971 2,494 1, , ,21 2,442 1, , ,63 2,487 1, ,613 Number of Customers (thousands) Residential Industrial Commercial Public and Medical Total 7, ,451 7, ,583 8, ,715 Large-volume Gas Demand Gas Sales Volume for Large-volume Customers (million m 3 ) Percentage of Total Gas Sales Volume Number of Customers 3 2, % 249 2, % 245 2, % 318 Megajoules (MJ) are used as the unit consumption, calculated on the basis of 45 MJ per cubic meter. As Tokyo Gas changed the standard caloric value in February 26 from MJ/m 3 to 45 MJ/m 3, previous year s sales volumes were adjusted retroactively to reflect the new figure All figures related to gas sales and demand are nonconsolidated basis. 8

11 Gas Sales Volume for Large-volume Customers (million m 3 ) 3 8, Number of Large-volume Customers 1,2 6, 1, 8 4, 6 2, Estimated Monthly Gas Sales for FY26 (million m 3 ) ,4 1,2 1, 1,131 1, ,5 1, ,3 1,4 1,179 1,381 1,21 1, /4 6/5 6/6 6/7 6/8 6/9 6/1 6/11 6/12 7/1 7/2 7/3 Residential Industrial Commercial, Public and Medical Wholesale Estimated ,193 2,597 1, ,78 3,144 2,979 1, ,433 3,33 3,682 1, ,133 1,77 3,319 4,263 1, ,224 11,471 3,26 4,696 1, ,39 12,212 3,468 4,965 2, ,628 13,24 3,356 5,232 1, ,77 13,188 3,425 5,418 2, ,96 13,73 3,455 5,635 2, ,989 14,4 3,491 5,753 2, ,67 14,299 3,521 6,65 2, ,187 14,782 3,546 6,311 2, ,191 15,79 8, ,872 8, ,44 8, ,244 8, ,445 9, ,639 9, ,818 9, ,955 1,84 1,232 1,374 1,55 1,629 2,75 3.3% 476 3, % 493 4, % 531 4, % 576 5, % 894 5, % 979 6, % 1,77 6, % 6, % 7, % 7, % Large-volume supply (annual consumption of 2 million m 3 or more) was deregulated in March In November 1999, this was expanded to include consumption of 1 million m 3 or more per year, and in April 24, to include consumption of 5, m 3 or more. In April 27, it was expanded again to include consumption of, m 3 or more. Estimates for the years ending March 31, 28 and after are based on the current standard (consumption of, m 3 or more per year) ,59 5.3% 9

12 Gas Demand for Air Conditioning Gas Air-conditioning System Capacity (thousands of kw) 3, Gas Air-conditioning System Customers (number of customers) 5, 2,5 2, 1,5 1, 5 4, 3, 2, 1, Absorption type Estimated Gas-engine heat pump Absorption type Gas-engine heat pump At March 31 Gas Air-conditioning System Capacity (thousands of kw) Absorption type Gas-engine heat pump Gas Air-conditioning System Customers (number of customers) Absorption type Gas-engine heat pump 331 GHP GHP Capacity is calculated into COP3.5 electric air-conditioners based on cooling installation capacity (equipment capacity) monitored by Tokyo Gas , ,224 32, , ,498 34, , ,762 36,988 Gas Demand for Power Generation Cogeneration Equipment Capacity (thousands of kw) 1,6 Number of Cogeneration System Customers 1, 1, Industrial Use Estimated Commercial Use Industrial Use Commercial Use At March 31 Cogeneration Equipment Capacity (thousands of kw) Industrial Use Commercial Use Number of Cogeneration System Customers Industrial Use Commercial Use 331 Some past figures of cogeneration equipment capacity are different from previously reported, due to a review in

13 Estimated , , , , , , ,1 1,9 3,14 1,74 2,977 1,133 2,951 1,194 2,942 1,256 2,933 1,317 8,945 38,923 9,52 4,434 9,22 42,158 9,427 43,163 9,623 43,9 9,719 44,441 9,846 45,26 Data for Power Plants Start of Composition of Name Capacity Plant type operation shareholding Location Tokyo Gas Baypower MW Power Producer and Tokyo Gas % Tokyo Gas Sodegaura Supplier (PPS) 23/1 LNG Terminal 1 Tokyo Gas 24 MW Independent Power Tokyo Gas 75%, Yokosuka, Kanagawa Yokosuka Power Producer (IPP) Shimizu Corporation 2% 26/6 Tokyo Hatsuden 5% Kawasaki Natural Gas 8 MW Power Producer and Tokyo Gas 49%, Kawasaki, Nippon Oil Power Generation (4 MW x 2 stations) Supplier (PPS) Nippon Oil 51% 28/ Ohgishima Power 1,2 MW Power Producer and Tokyo Gas 75%, Showa Shell Sekiyu, Tokyo Gas (4 MW x 3 stations) Supplier (PPS) Showa Shell Sekiyu 25% Ohgishima LNG Terminal 21/ Total 2,34 MW 234 Estimated , , , , , ,

14 Breakdown of Gas Sales Volume At March 31 Commercial Use (million m 3 ) Company/Office Wholesale/Retail Sales Restaurant Lodge/Hotel Beauty Salon Amusement Place Laundry District Heating and Cooling Other Total Public and Medical Use (million m 3 ) Public Medical Total Industrial Use (million m 3 ) Machinery/Metal Ceramics Chemicals Food Power Generation Other Total , , , , , , , , , ,98 R&D Data R&D Expenses ( million) 15, Number of Researchers (Nonconsolidated) (persons) 5 12, 4 9, 3 6, 2 3, Consolidated Nonconsolidated Researchers Assistant Researchers At March R&D Expenses R&D Expenses As Percentage of Net Sales Number of Researchers (Consolidated) ( million) (Nonconsolidated) ( million) (Nonconsolidated) (%) (Nonconsolidated) (persons) 14, Number of Assistant Researchers (Nonconsolidated) (persons) , ,68 13, ,517 12, ,225 11, ,671 1, ,146 1, ,78 8, ,399 8, ,276 9,

15 , , , , ,963 Composition 22.5% 15.9% 25.3% 8.7% 1.5% 3.5% 1.5% 14.1% 7.%.% Commercial, Public and Medical Use (%) Company/Office Wholesale/Retail Sales Restaurant Lodge/Hotel Beauty Salon Amusement Place Laundry District Heating and Cooling Other Public Medical , , , , , , , , , ,3 68 5, % 29.3%.% 22.8% 2.8% 13.5% 9.6% 38.3% 13.%.% Industrial Use (%) Machinery/Metal Ceramics Chemicals Food Power Generation Other Personnel Data Number of Employees (persons) 2, Composition by Age and Sex (Nonconsolidated) (As of March 31, , 1, 5, Age Male Female Total (7.4%) 72 (6.6%) 58 (7.3%) 339 1,557 (22.6%) 548 (5.1%) 2,15 (26.4%) 449 1,683 (24.5%) 253 (23.1%) 1,936 (24.3%) 559 2,864 (41.7%) 26 (18.9%) 3,7 (38.5%) (3.8%) 14 (1.3%) 277 (3.5%) Total 6,875 (.%) 1,93 (.%) 7,968 (.%) Consolidated Nonconsolidated At March 31 Consolidated Number of Employees Nonconsolidated Number of Employees ,475 13, ,24 12,933 Employees refers to permanent full-time staff and does not include part-time workers. The decrease of 2,585 employees from 23 to 24 on a nonconsolidated basis is due to the increase of dispatched personnel, on the consignment of customer service operation to Tokyo Gas Customer Service Co., Ltd The Company began disclosing the above consolidated figures in the fiscal year ended March 31, 2. Where possible, consolidated figures for the previous fiscal years have also been calculated ,685 12, ,37 12, ,973 11, ,673 11, ,578 8, ,67 8, ,675 8, ,451 7,968 13

16 Capital Expenditures and Depreciation Capital Expenditures ( billion) Depreciation ( billion) Estimated Consolidated Nonconsolidated Consolidated Nonconsolidated Fiscal years ended March 31 Consolidated Capital Expenditures ( million) Depreciation ( million) Nonconsolidated Capital Expenditures ( million) Production Facilities Distribution Facilities Service and Maintenance Facilities Incidental Facilities Depreciation ( million) ,15 41,976 8,855 13,31 11,242, , ,9 134,39 27,894 81,559 15,73 9, , ,975 14,36 113,91 15,699 8,914 1,387 6,91 116,755 Depreciation includes long-term period expenses. Gas Sales Volume per Pipeline Length At March 31 Pipeline Length (km) Gas Sales Volume per Kilometer (1, m 3 /km) , , , Bonds, Loans and Debts Bonds (Year Ended March 31, 27) 273 Amount Company Straight bonds Interest rate ( million) Tokyo Gas The 18th Domestic unsecured notes due % 3, Tokyo Gas The 19th Domestic unsecured notes due % 3, TG Credit Service Co., Ltd. The 2nd Domestic unsecured notes due % 4, Tokyo Gas The 2th Domestic unsecured notes due % 2, Tokyo Gas The 21st Domestic unsecured notes due % 3, Tokyo Gas The 22nd Domestic unsecured notes due % 2, Tokyo Gas The 24th Domestic unsecured notes due % 3, Tokyo Gas The 25th Domestic unsecured notes due % 2, ENERGY ADVANCE Co., Ltd. The 15th Domestic unsecured notes due % 13,8 Tokyo Gas The 16th Domestic unsecured notes due % 27,7 Tokyo Gas The 17th Domestic unsecured notes due % 4, Tokyo Gas The 23rd Domestic unsecured notes due % 2, Tokyo Gas The 26th Domestic unsecured notes due % 1, Tokyo Gas The 27th Domestic unsecured notes due % 1, Total 35,5 14

17 Breakdown of Capital Expenditures (Nonconsolidated) ( million) 16, 12, 8, 4, Production Facilities Distribution Facilities Service and Maintenance Facilities Incidental Facilities Estimated Estimated ,397 15,374 15, , , ,27 17, ,895 17,529 14, , , , ,142,685 1,175 77,428 1,553 2, ,124 92,555 8,37 7,644 11,669 2,23 119,56 93,77 7,64 71,659 13, ,637 86,743 4,531 65,911 15, ,775 75,236 1,966 54,341 18, ,327 85,853 5,482 56,138 22,286 1,945 11,59 88,776 5,93 65,356 17, ,4 96,66 9,39 72,229 13,981 1,6 13,325 8,167 73,462 2,47 1,226 88,551 7,688 69,42 1,69 1,212 87,39 7,627 6,62 17,791 1,37 73,791 6,178 55,87 1,436 1, , , , , , , , Convertible Bonds (Year Ended March 31, 27) 273 Domestic unsecured convertible bonds Total amount of issues ( million) Conversion prices ( ) Interest rate Amount ( million) 5th issue due , % 32,618 Loans (Year Ended March 31, 27) 273 Average Amount interest rate ( million) Long-term debt due after one year 1 2.1% 127,778 Long-term debt due within one year 1 1.7% 42,617 Short-term bank loans.7% 1,954 Commercial paper due within one year 1.7% 6, Total 187,349 Annual Maturities of Long-term Debt (Year Ended March 31, 27) 273 Amount ( million) At March 31, ,617 At March 31, ,568 At March 31, ,957 At March 31, ,938 At March 31, ,565 At March 31, 213 and thereafter ,869 Total 58,514 15

18 Financial Data (Segment Information) Gas Sales ( billion) Gas Appliances Sales ( billion) Sales Operating Income Sales Operating Income 1, Fiscal years ended March Gas Sales ( million) Sales Operating Income Operating Income Margin 75, , ,453 16, , , Gas Appliances Sales ( million) Sales Operating Income Operating Income Margin 149,23 7, ,635 7, ,873 7, Related Construction ( million) Sales Operating Income Operating Income Margin 71,337 3, ,568 4, ,33 4, Real Estate Rental ( million) Sales Operating Income Operating Income Margin 37,551 6, ,346 7, ,443 7, Other Business ( million) Sales Operating Income Operating Income Margin 156,11 1, ,326 9, ,16 11, Total ( million) Sales Operating Income Operating Income Margin 1,164, , ,2,33 189, ,24,625 22, Elimination or corporate ( million) Sales Operating Income 66,952 66,384 72,696 66,195 88,8 68,591 Consolidated ( million) Sales Operating Income Operating Income Margin 1,97,589 11, ,127, , ,151, , The scope of consolidation was expanded in April 24, and there were 52 companies as of the end of March

19 Related Construction ( billion) Real Estate Rental ( billion) Sales Operating Income Sales Operating Income Other Business ( billion) 834, , ,32 16, ,521 23, Sales 3 Operating Income 3 135,18 7, ,825 4, ,47 1, ,794 3, ,746 2, ,229 1, ,71 6, ,187 5, ,34 6, Other Business District heating and cooling Energy services LPG Industrial gas 234,72 13, ,595 9, ,47 13, Credit leases System integration General engineering 1,33, , ,387, , ,513, , ,2 67, ,175 7, ,641 64,75 1,19, , ,266,51 112, ,376, ,

20 Financial Data (Profitability and Growth) Net Sales ( billion) 1,5 Consolidated Nonconsolidated Operating Income ( billion) 2 1, Operating Cash Flow ( billion) Operating Income Ratio (%) Fiscal years ended March 31 CONSOLIDATED Net Sales ( million) Operating Income ( million) Ordinary Income ( million) Net Income ( million) Operating Income Ratio (%) Ordinary Income Ratio (%) Return on Sales (%) Operating Cash Flow ( million) Free Cash Flow ( million) NONCONSOLIDATED Net Sales ( million) Operating Income ( million) Ordinary Income ( million) Net Income ( million) Operating Income Ratio (%) Ordinary Income Ratio (%) Return on Sales (%) Operating Cash Flow ( million) Free Cash Flow ( million) 3311 Operating Cash Flow = Net Income + Amortization of Long-term Period Expenses + Depreciation Free Cash Flow = Net Income + Amortization of Long-term Period Expenses + Depreciation Capital Expenditures ,9,154 76,484 36,471 17, ,428 6,558 3,185 15, ,871 31, ,766 72,32 42,515 17, ,773 9,647 87,838 57,193 36,45 16, ,986 8,323 18

21 Ordinary Income ( billion) Net Income ( billion) Ordinary Income Ratio (%) Return on Sales (%) ,255 69,233 43,72 26, ,4 42,29 1,86,77 13,659 66,875 27, ,969 66,572 1,97,589 11,67 8,626 51, ,475 92,178 1,127, ,294 91,955 59, ,228 88,24 1,151, , ,93 44, ,682 84,241 1,19, , ,856 84, , ,789 1,266,51 112,345 98,689 62, ,49 79,55 1,376, , ,39, ,841 19, ,939 51,296 34,929 22, ,15 26,59 965,619 85,79 58,542 27, ,524 53, ,566 92,299 72,249 48, ,957 75,42 992,236,18 79,68 53, ,27 74,5 1,13, , ,859 4, ,48 73,35 1,13,993 12, ,192 78, , ,757 1,78,19 9,99 85,89 55, ,889 71,36 1,172, , ,823 92, ,344 11,568 19

22 Financial Data (Efficiency and Soundness) Total Assets ( billion) Consolidated Nonconsolidated Shareholders Equity ( billion) 2, 8 1,5 6 1, Total Assets Turnover (times) Equity Ratio (%) At March 31 CONSOLIDATED Total Assets ( million) ROA (Return on Assets) (%) Shareholders Equity ( million) ROE (Return on Equity) (%) Interest-bearing Debt ( million) Net Interest-bearing Debt ( million) Fund-raising Expenses ( million) Total Assets Turnover (times) Equity Ratio (%) Current Ratio (%) D/E (Debt-equity) Ratio (times) Interest Coverage Ratio (times) Interest Payment Ratio (%) NONCONSOLIDATED Total Assets ( million) ROA (Return on Assets) (%) Shareholders Equity ( million) ROE (Return on Equity) (%) Interest-bearing Debt ( million) Net Interest-bearing Debt ( million) Fund-raising Expenses ( million) Total Assets Turnover (times) Equity Ratio (%) Current Ratio (%) D/E (Debt-equity) Ratio (times) Interest Coverage Ratio (times) Interest Payment Ratio (%) 331 Net Interest-bearing Debt = Interest-bearing Debt Cash and Bank Deposits Financial Expenses = Interest Expenses + Bond Interest Expenses + Bond Issue Cost Amortization Total Assets Turnover = Net Sales / Total Assets (average) Equity Ratio = Shareholders Equity (year-end) / Total Assets (year-end) x ,72, , , 893,15 26, ,47, , , ,86 21, ,77, , ,91 894,974 22, ,399, , ,245 7,432 18,

23 ROE & ROA (%) 15 ROE ROA Consolidated Nonconsolidated Consolidated Nonconsolidated Interest-bearing Debt ( billion) 1, Current Ratio (%) 15 Interest Coverage Ratio (times) ,85, , ,85 899,159 23, ,797, , , ,838 22, ,72, , , ,854 19, ,676, , ,31 695,629 17, ,666, , , ,139 14, ,668, , ,15 57,859 13, ,693, , ,911 51,89 11, ,692, , , ,851 1, ,493, , , ,956 18, ,49, , , ,46 17, ,411, , , ,577 15, ,381, , ,47 545,146 12, ,41, , , ,119 11, ,382, , ,47 461,579 1, ,396, , ,28 379,49 8, Current Ratio = Current Assets (year-end) / Current Liabilities (year-end) x Debt-equity Ratio = Interest-bearing Debt (year-end) / Shareholders Equity (year-end) Interest Coverage Ratio = (Operating Income + Interest Income + Dividend Income) / Financial Expenses Interest Payment Ratio = (Interest Expenses + Bond Interest Expenses) / Interest-bearing Debt (average) x 1,382, , , ,134 7,

24 Financial Data (Performance Indicators) Earnings per Share ( ) 1 4 Consolidated Nonconsolidated Book Value per Share ( ) Price Earnings Ratio (times) Price Book Value Ratio (times) At March 31 CONSOLIDATED EPS (Earnings per Share) ( ) BPS (Book Value per Share) ( ) CFPS (Cash Flow per Share) ( ) DOE (Dividends on Equity) (%) Total Payout Ratio (%) Payout Ratio (%) PER (Price Earnings Ratio) (times) PBR (Price Book Value Ratio) (times) Price Cash Flow Ratio (times) EBITDA ( million) EV/EBITDA (times) NONCONSOLIDATED EPS (Earnings per Share) ( ) BPS (Book Value per Share) ( ) CFPS (Cash Flow per Share) ( ) Cash Dividends Paid ( million) DOE (Dividends on Equity) (%) Payout Ratio (%) PER (Price Earnings Ratio) (times) PBR (Price Book Value Ratio) (times) Price Cash Flow Ratio (times) EBITDA ( million) EV/EBITDA (times) Dividend per Share ( ) Stock Repurchase Cash Flow per Share = (Net Income + Depreciation + Amortization of Long-term Period Expenses) / Numbers of Issued Shares (average) 1 Dividends on Equity = Annual Cash Dividend / Shareholders Equity (average) Total payout ratio of year n = [(dividends from unappropriated profit in year n) + (amount of treasury stocks acquired in year n + 1)] / (consolidated net income in year n) 1 Payout Ratio Cash dividend paid on a cash flow basis / Net income , , , , ,

25 Cash Flow per Share ( ) 1 Payout Ratio (%) Price Cash Flow Ratio (times) EV/EBITDA (times) , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,717 PCFR = Share Price (year-end) / CFPS EV/EBITDA = (Market Capitalization + Interest-bearing Debt + Minority Interest Cash and Bank Deposits Marketable Securities) / (Operating Income + Amortization of Long-term Period Expenses + Depreciation) The amount shown for share repurchase excludes requests for the purchase of odd-lot shares. 23

26 Ten-year Consolidated Balance Sheets 1 At March 31 ASSETS Fixed assets Property, plant and equipment Production facilities Distribution facilities Service and maintenance facilities Other fixed assets Construction in progress Intangible assets Investments and other assets Investment securities Investments in nonconsolidated subsidiaries and affiliated companies Long-term loans Long-term loans to nonconsolidated subsidiaries and affiliated companies Long-term period expenses Deferred income taxes Other investments and others Allowance for doubtful accounts Current assets Cash and bank deposits Notes and accounts receivable Marketable securities Inventories Deferred income taxes Other current assets and others Allowance for doubtful accounts Total assets 331 At March 31 LIABILITIES Non-current liabilities Straight bonds Convertible bonds Long-term debt Reserve for employee retirement allowances Reserve for employee retirement benefits Other non-current liabilities and others Current liabilities Non-current liabilities due within one year Notes and accounts payable Bank loans Income taxes payable Other current liabilities and others Total liabilities Minority interest SHAREHOLDERS EQUITY Common stock Capital surplus Legal reserve Retained earnings and others Net unrealized gain on securities Treasury stock Total shareholders equity Total liabilities, minority interests and shareholders equity NET ASSETS Shareholders equity Common stock Capital surplus Retained earnings Treasury stock Unrealized gains/losses and exchange rate adjustments Net unrealized holding gains on securities Deferred gains/losses on hedging instruments Minority interest Total net assets Total liabilities, minority interests and net assets Some items in the accompanying financial statements have been summarized to preserve simplicity. Such changes are unaudited. Due to the revision of regulations for consolidated financial statements, Capital reserve is presented as Capital surplus and Consolidated retained earnings is presented as Retained earnings beginning in the year ended March 31,

27 ,461,97 1,342, ,46 457,73 91, , ,852 4, ,4 32,467 5,515 78,57 1, ,475 16, ,83 3,396 27,687 84,162 1,51 1,77, ,465,828 1,337, ,33 458, , , ,217 3, ,33 24,317 16,431 3,593 1,5 69,481 1,681 1, ,854 17, ,684 1,925 29,975 88,18 1,643 1,72, ,491,2 1,333, , ,183 85,551 34, ,953 19, ,648 32,181 5,366 41,559 59,923 1, ,65 57, ,512 2,39 27,59 7,559 95,24 1,54 1,85, ,517,353 1,292, ,889 55,477 8,61 324,9 96,121 19,251 25, ,641 4,945 19,359 57,122 1,144 28,315 21,59 127,36 27,419 8,26 97,189 1,98 1,797, ,45,814 1,249, ,26 549,416 76,154 33,141 59,199 19, ,681 92,712 6,338 3,83 54,28 1,66 251,898 23,4 128,549 28,758 1,49 62, ,72, ,411,513 1,217, ,58 538,191 71, ,477 75,442 2,69 173,438 71,544 1,238 44,36 49,593 2, ,551 35, ,235 21,125 11,48 65,487 1,448 1,676, ,47,725 1,17, , ,47 61, ,753 38,496 18, ,44 18,485 13,23 51,251 47,132 1, ,12 48,65 125,244 22,826 11,587 52,55 1,215 1,666, ,382,66 1,159, ,886 51,727 59, ,96 48,311 22, ,769,61 4,47 51,329 45,53 1, ,667 53, ,722 25,436 12,75 57, ,668, ,391,882 1,14,32 216, ,713 59, ,937 5,68 23, , ,47 3,553 36,385 43, ,16 49, ,59 34,597 12,765 59, ,693, ,371,576 1,13,48 27,751 53,547 64,12 32,38 52,79 24,68 217,27 144,666 3,778 28,43 41, ,58 42, ,382 36,132 11,989 64, ,692, , , , ,678 15,722 58, ,444 54,2 52,693 24, ,125 1,282,883 3,12 141,817 2,38 277, ,443 1,77, , , ,132 28,728 15,283 57, ,22 96,887 52,93 41,248 18, ,983 1,32,928 3, ,816 2,38 36, , ,755 1,72, ,2, , , ,357 16,392 52,53 314,697 71,959 39,284 41,641 19, ,928 1,317,227 3, ,817 2,38 34, ,239 1,85, , , , ,4 134,215 31, ,99 122,32 43,285 39,921 27, ,31 1,241,222 3, ,817 2,38 353,798 55, ,79 1,797, , , , ,96 125,554 3, ,861 4,443 38,55 42,79 33, ,991 1,134,838 3, ,843 2,64 387,43 32, ,77 1,72, , , , ,875 12,896 32,354 34,746 91,239 37,676 41,9 41, ,71 1,92,319 4,39 141,844 2,65 429,657 17,2 1, ,76 1,676, , ,833 99, ,83 157,88 3, ,77 17,2 35,747 3,29 39, 117,974 1,64,116 4, ,844 2,65 437,698 35,654 38,88 598,453 1,666, ,878 35,5 89, , ,48 3,26 292,458 51,969 6,563 25,123 41,69 113,113 1,11,337 8,63 141,844 2,67 532,5 31,5 59, ,766 1,668, ,945 35,5 39,7 151,539 13,222 34, ,466 45,597 76,925 17,67 33, , ,411 1, ,844 2,65 572,652 56,51 44,84 728,231 1,693, ,454 35,5 32, ,778 92,947 42, ,135 42,742 59,728 1,954 43, , , , ,844 2,65 644,652 44,564 51,13 49,76 1,397 1,944 86,45 1,692,635 million/ The scope of consolidation was expanded in April 24, and there were 52 companies as of the end of March Following the enforcement of the new Company Law, the shareholders equity section has been removed and the net assets section introduced. These changes took effect from the year ended March 31,

28 Ten-year Consolidated Statements of Income 1 Fiscal years ended March 31 Net sales Cost of sales Gross profit Selling, general and administrative expenses Selling expenses General and administrative expenses Operating income Non-operating income Interest income Dividend income Equity in net income of an affiliated company Exchange gains Gains from weather derivative transactions Gains from commodity derivative transactions Miscellaneous revenue and others Non-operating expenses Interest expenses Bond interest expenses Bond issue cost amortization Adjustments of charges for construction of distribution facilities Loss from weather derivative transactions Miscellaneous expenses and others Ordinary income Extraordinary income Extraordinary expenses Income before income taxes Income taxes Income taxes deferred Minority interest in net income and loss of consolidated subsidiaries Net income 3311 Some items in the accompanying financial statements have been summarized to preserve simplicity. Such changes are unaudited. Three-year Consolidated Statements of Cash Flows 3 Fiscal years ended March Cash flows from operating activities: Net income before adjustment for tax, etc. Depreciation Amortization of long-term prepayments Loss on disposals of property, plant and equipment Loss on bond redemption Increase (decrease) in allowance for doubtful accounts Increase (decrease) in employeesseverance and retirement benefits Increase (decrease) in reserve for safety measures Interest and dividend income Interest expense Increase in notes and accounts receivable Decrease (increase) in inventories Decrease in notes and accounts payable Increase (decrease) in consumption taxes payable Other Subtotal Cash received for interest and dividends Cash paid for interest Cash paid for income taxes Net cash provided by operating activities , ,42 3,85 3,388 2,879 1,292 17,455 1,85 13,134 7, ,57 1, ,585 1,57 13,3 43,61 215,37 26, ,3 4,76 3,251 1, 11,189 1,449 11,14 7,11 9,17 23,122 2,8 6, ,36 1,445 11,49 44, ,529 million/ , ,998 4,144 3,156 37,274 5,427 2,5 1,369 17,369 1,535 14,75 4,45 8, ,156 2,1 1,243 39,326 19,597 26

29 1998 1,9,154 49, , , ,269 89,76 76,484 6, ,279 5,32 46,873 8,977 17,237 7,266 13,393 36, ,134 36,26 18, , , ,283 52, ,18 35,68 98,111 72,32 7, ,182 1,381 5,132 37,664 22,393 8,546 6,725 42, ,32 4,964 23, , , ,813 58, ,27 344,675 94,532 69,233 1, , ,636 5,892 35,716 23,366 7,837 4,513 43, ,738 16, , ,86,77 561,6 525, ,15 348,624 73,48 13,659 8, , ,629 45,156 22,866 6,271 16,19 66, ,953 45,84 25,436 8, , ,97, , ,6 424, ,977 71,15 11,67 7, ,275 37,586 19,274 6,827 11,485 8,626 4,2 1,965 82,861 31, , ,127, , ,74 432,49 359,999 72,49 123,294 7, ,133 38,78 17,472 4,648 16,66 91,955 8,699 4,771 95,882 43,621 7, , ,151, , , ,7 345,572 75, ,287 9, , ,498 3,324 14,822 4,144 11, ,93 8,413 66,375 73,131 44,266 16, , ,19, , ,6 42, ,617 74,94 145,349 12, ,74 8,31 24,67 13,134 4,42 7, ,856 5,734 5, ,322 45,73 3, , ,266,51 724,53 541, , ,388 77, ,345 1, , ,458 6,263 24,52 11,14 3,16 5,666 4,824 98,689 7,61 5,443,846 35,73 2, ,114 million/ 27 1,376, , , , ,962 71, ,315 13, 155 1,895 1,347 1,62 8,83 19,375 1,369 9,6 156,39 13,75 7, ,533 49,335 11, ,699 Fiscal years ended March Cash flows from investing activities: Purchases of marketable and investment securities Purchases of property, plant and equipment Purchases of intangible fixed assets Expenditure of long-term prepayment Proceeds from sale of tangible and intangible fixed assets Other Net cash used in investing activities 3. Cash flows from financing activities: Increase (decrease) in short-term bank loans Increase (decrease) of commercial papers Proceeds from bonds and long-term debt Repayments of bonds and long-term debt Cash dividends paid Cash dividends paid to minority shareholders Payments to minority shareholders on account of capital reduction Proceeds from sales of treasury stock Purchase of treasury stock and other Net cash provided by (used in) financing activities 4. Effect of exchange rate changes on cash and cash equivalents 5. Net increase (decrease) in cash and cash equivalents 6. Cash and cash equivalents at beginning of year 7. Increase (decrease) in cash and cash equivalents due to addition (exclusion) of consolidated subsidiaries 8. Cash and cash equivalents at end of year Some items in the accompanying financial statements have been summarized to preserve simplicity. Such changes are unaudited ,118 94,83 12,786 2,332 4,28 11,916 17,375 2,69 6, ,72 2, ,253 18, ,96 7,24 5, ,564 11,993 4,95 2,52 6,598 3,34 116,71 8,684 16,997 52,433 18, ,357 83, ,578 5,664 12,547 45,633 million/ 27 12, ,173 8,611 2,471 5,985 1,973 13,922 6,522 6, 14,934 26,986 18, ,65 65, ,159 45, ,231 27

30 Ten-year Nonconsolidated Balance Sheets 1 At March 31 ASSETS Fixed assets Property, plant and equipment Production facilities Distribution facilities Service and maintenance facilities Other fixed assets and others Construction in progress Intangible assets Investments and other assets Investment securities Investments in affiliated companies Long-term period expenses Deferred income taxes Other investments and others Allowance for doubtful accounts Current assets Cash and bank deposits Notes and accounts receivable Marketable securities Inventories Short-term loans to affiliated companies Deferred income taxes Other current assets and others Allowance for doubtful accounts Total assets 331 At March 31 LIABILITIES Non-current liabilities Straight bonds Convertible bonds Long-term debt Reserve for employee retirement allowances Reserve for employee retirement benefits Other non-current liabilities and others Current liabilities Non-current liabilities due within one year Accounts payable Bank loans Other payables Accrued expenses Income taxes payable Other current liabilities and others Total liabilities SHAREHOLDERS EQUITY Common stock Capital surplus Retained earnings Legal reserve Other retained earnings Net unrealized gain on securities Treasury stock Total shareholders equity Total liabilities and shareholders equity NET ASSETS Shareholders equity Common stock Capital surplus Retained earnings Legal reserve Other retained earnings Treasury stock Unrealized gains/losses and exchange rate adjustments Net unrealized holding gains on securities Deferred gains/losses on hedging instruments Total net assets Total liabilities, minority interests and net assets Some items in the accompanying financial statements have been summarized to preserve simplicity. Such changes are unaudited. Due to the revision of regulations for financial statements, Capital reserve is presented as Capital surplus beginning in the year ended March 31, 23. Legal reserve and Other retained earnings are presented as components of Retained earnings

31 29 2 1,25,442 1,29, , ,415 82,93 48, ,69 16,598 23,889 19,622 88,547 48,813 36,751 11,311 1, ,257 46,99 84,56 9,49 22,64 3, 6,454 44, ,493, ,224,81 1,36, ,553 45,812 89,292 37, ,83 1,96 186,418 19,917 9,767 64,842 12,11 1, ,18 7,813 78,885 11,563 22,988 2, 34, ,399, ,221,148 1,23, , , ,4 35, ,599 1, ,359 23,18 96,876 65,894 11,589 1,18 186,74 7,832 82,42 12,846 24,752 2, 39, ,47, ,276,594 1,1, , ,295 78,49 44,891 94,373 15, ,98 12,252 86,754 46,387 12,439 12,313 1,47 213,562 6,117 94,18 1,71 22,13 39, 6,924 35, ,49, ,224, , , ,492 73,889 41,56 54,389 15, ,462 67,393 87,13 43,517 23,22 15,473 1, ,575 7,39 96,776 13,75 23,812 8,8 37, ,411, ,184,773 91,53 244,37 532,98 69,44 5,41 59,977 16, ,13 45,72 112,133 37,166 37,299 27,152 1, ,585 14,91 12,635 7,334 15,391 9,99 48, ,381, ,193,53 869, , ,829 59,256 5,15 32,42 14,645 39,35 68, ,98 35,495 43,998 38,18 1, ,492 36,119 94,675 1,818 17,553 9,181 49, ,41, ,15, , ,52 54,513 57,224 4,552 38,441 15,16 32,51 66,373 19,756 33,842 41,39 51, ,272 39,828,748 1,75 19,858 18,567 9,2 34,266 1,72 1,382, , , ,334 96,139 12,451 27,91 211,177 51,999 18, ,22 39,777 17,8 38,499 1,5, ,817 2,38 35, ,52 443,363 1,493, , , ,131 13,643 12,5 31, ,236 8,797 33, ,64 41,68 22,93 36,589 1,8, ,817 2,38 35, , ,295 1,399, ,54 158, ,132 95,732 12,544 26,53 239,322 56,251 3, ,24 41,629 15,13 45,746 1,19, ,816 2,38 35,274 29, ,512 1,47, ,68 241,43 245,445 94, ,891 8,31 267,93 14,288 18, ,52 43,566 24,648 4, , ,817 2,38 35, ,32 51,554 58,185 1,49, ,73 246, ,693 88, ,554 8, ,67 22,884 18, ,69 41,216 31,372 51, , ,843 2,64 35,454 37,428 3, ,7 1,411, ,48 236, ,814 65, ,2 12, ,686 74,432 19,821 35,124 39,332 36,257 37,72 853,94 141,844 2,65 379,668 35, ,214 15,548 1, ,264 1,381, , ,33 99,928 74, ,48 1,13 269,938 9,465 18,336 27,46 38,13 35,15 6, ,85 141,844 2,65 43,442 35, ,988 31,673 38,88 54,217 1,41, ,14 287,7 89,885 59,17 13,844 9, ,12 3,249 27,26 25,89 35,355 37,526 75,677 88,26 141,844 2,67 461,959 35, ,55 27,332 59, ,59 1,382, , ,7 39,7 56, ,24 1, ,626 27,29 42,36 28,611 4,412 29,353 71, , ,844 2,65 494,93 35, ,476 48,952 44,84 642,953 1,396, , ,7 32,618 33,74 81,765 17,41 226,257 22,984 23,988 35,87 37,58 38,18 68, ,85 659, ,844 2,65 56,27 35, ,573 44,564 43,8 42,597 1,22 73,173 1,382, ,161, , ,39 499,633 56,75 4,984 34,321 16, ,411 11,21 11,215 31,76 27,55 72, ,54 31,688 17,323 11,66 28,461 9,66 48, ,396, ,135, ,468 27, ,764 6,348 4,511 32,846 17, ,15 96,967 17,625 28,981 18,751 76, ,724 23, ,622 1,319 28,91 15,452 8,69 38, ,382,259 million/ Following the enforcement of the new Company Law, the shareholders equity section has been removed and the net assets section introduced. These changes took effect from the year ended March 31,