1 2 0 2 Report Integrated

19-18,Sakurada-cho,Atsuta-ku, Nagoya 456-8511, Japan https://www.tohogas.co.jp/lang-n/en/corporate/

The following considerations have been applied to reduce the environmental impact.

Integrated Repor t

2 0 2 1

21.10

Corporate Philosophy

Corporate Mission

We, together with our Group companies, are dedicated to the creation of a rich and exciting life and the development of attractive and vital communities by setting our greatest value on the trust placed in us.

Contents

History of Toho Gas Group

P3

Message from the Top

P5

Value Creation Process

P7

Materiality (Key Issues)

P9

Message from the President

P11

Special Features

Social Report

Biodiversity Conservation

P54

Contribution to the Local Communities

P55

Enhancement of Communication

P59

with Shareholders and Investors

Human Resource Management

P61

Governance Report

Management Policy

  • Think and act on a customer-first basis.
  • Develop markets through foresight and technology.
  • Foster human resources by focusing on competence and ambition.
  • Pursue a flexible and vitalized organization.
  • Broaden our vision and expand our line of business.

Employee Action Criteria

  • Challenge and Innovation
  • Sensitivity and Response
  • Proficiency and Pride
  • Activeness and Brightness
  • Reliability and Honesty

Efforts Addressing Climate Change

P17

The Toho Gas Group 2050

P19

Carbon Neutrality Initiative

Efforts in the Use of Digital

P26

Technologies

Toho Gas Group Initiatives

P29

Further Growth of

P29

the City Gas Business

Development into

P33

a Total Energy Provider

Taking on New Scopes

P35

Reinforcing the Business Foundation

P37

of the Toho Gas Group

Initiatives for ESG

P39

Environment Report

Management of Environmental

P41

Preservation

Global Warming Countermeasures

P46

Resource Recycling

P50

Biodiversity Conservation

P53

Corporate Governance

P67

Internal Control

P69

Compliance

P70

Board of Directors and Audit &

P71

Supervisory Board Members

Messages from Outside Officers

P73

External Opinion and Evaluation

P75

Data Section

Fundamental Data

P77

Financial Highlights (consolidated)

P79

Consolidated Balance Sheets

P81

Consolidated Statements of Income

Consolidated Statements of

Comprehensive Income

P83

Consolidated Statements of

Cash Flows

P84

Company Overview

P85

The Toho Gas Group has published an Integrated Report since FY2018 to replace its regular Annual Report

Editorial Policy

and Environmental and Social Report. We hope that the Integrated Report will enable all stakeholders to

gain a deeper understanding of the Toho Gas Group. For this reason, we have summarized our overall corporate strategy under the title of Value Creation Process, wherein we introduce our business activities and environmental, social, and governance (ESG) initiatives which specifically link to the corporate strategy. In the special features in this edition, we cover the Toho Gas Group 2050 Carbon Neutrality Initiative as an endeavor to address climate change, and our efforts to implement and use digital technologies. We publish more details of the IR and corporation as well as information on our ESG initiatives and other matters on the Toho Gas website to enable access to many stakeholders. In an effort to make this report an effective tool for communication with stakeholders, we aim to develop it further as an integrated report while reflecting feedback from all of our stakeholders.

Perpetuating the Okamoto Spirit

The first president of Toho Gas, Sakura Okamoto, believed in a management philosophy that "Customers, shareholders, employees form a trinity, and the coexistence and coprosperity of such stakeholders in the company is indispensable." We strive in the practical application of this. Furthermore, we apply this way of thinking in our approach to service in social and public aspects, advocating promotion of community welfare, and integration with the local communities.

■

Reporting Period

■

Reporting Scope

FY2020(April 1, 2020‒March 31, 2021) Some activities covered took place in FY2021.

In principle, Toho Gas Co., Ltd., consolidated subsidiaries and equity-method subsidiaries (as of March 31, 2021) are described as "Toho Gas Group." In each report, we aim to indicate the specific organization involved in circumstances where overall Group information is not fully understood.

Okamoto was a manager who thought constantly about the company as a social public institution, and we continue to pass on his spirit, which forms part of the company's DNA.

Sakura Okamoto, the first President

(Term of office: 1922‒1935)

■

Descriptions of

Future

Expectations

■

Reference

Guidelines

■

Publishing

■

Department

Published

The statements in this report concerning future expectations are forecasts based on information currently available and may include potential risks and uncertainties. Be aware, therefore, that due to various factors, actual results may differ from forecasts contained in this report.

GRI Standards／International Integrated Reporting Council (IIRC) Framework／ISO26000／ Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues for Collaborative Value Creation／Environmental Reporting Guidelines (2018 version)／ Task Force on Climate-related Financial Disclosures (TCFD) Opinions

CSR / Environment Dept. TEL +81-52-872-9252 Finance Dept. TEL +81-52-872-9341

September 2021 (Next edition: scheduled for August 2022)

About the Design of the Cover

The cover of the Integrated Report 2021 was designed by the staff of Toho Flower

Co., Ltd. The expanding round form that changes shape as it moves toward a new

realm expresses the spirit of challenge. Toho Flower Co., Ltd. is a company in the

Toho Gas Group established in October 2019. It aims to encourage hiring and lasting

employment for persons with disabilities, thereby contributing to local communities.

* In 2019 we used straight lines giving an impression of piping to express never-faltering sense of trust, and

2019

2020

2021

in 2020, the form composed of growth curves expressed development and a sense of stability.

1

Toho Gas Group Integrated Report 2021

Toho Gas Group Integrated Report 2021

2

History of Toho Gas Group

City gas sales volume*1

Residential use

Business/commercial use, etc.

LPG sales volume*2

Electricity sales volume

Number of homes in three Tokai prefectures*3

Gross prefectural production in three Tokai prefectures*4

Number of city gas customers*1（meters installed）

Number of LPG customers

Number of electricity customers

Over almost 100 years since its establishment in 1922, Toho Gas has been an energy company with strong roots in the local

City gas

3.61billion m3

sales volume

communities. In response to changes in the business environment, we have converted the energy resources used for city gas, expanded

Number of homes in

usage applications, and achieved growth and development together with the local communities. Toho Gas Group has achieved the

three Tokai prefectures 4.77million

growth of the city gas business as well as LPG business operations developed since 1959. In addition, the Group is working to expand

Gross prefectural

57trillion yen

the scope of business by taking initiatives such as entering into the retail electricity business in 2016.

production in three

Tokai prefectures

Number of city gas

2.533 million

customers

LPG sales

462 thousand tonnes

volume

Number of

LPG customers 594 thousand

Number of

438 thousand

0.93million

1.27million

electricity customers

1.6billion kWh

0.08million

Electricity sales

0.03million

volume

1922

1950

1960

1970

1980

1985

1990

1995

2000

2005

2010

2015

2020(Fiscal year)

Strengths of the Toho Gas Group

Ties with Customers

Our proximity to customers in various opportunities based on the relationships of trust that have been developed over almost 100 years

Efforts to Support the Lives of People and Businesses in the Region

P27- 30

Contribution to the

Local Communities

P54 - 58

Foundational Security Systems and Resilience

Security and safety which we have formed as the basis of gas business for years

Event

●1941-45 The Pacific War

●1959 Ise Bay Typhoon

●1973 Start of first oil crisis

●1995

●1979 Start of second oil crisis

Great Hanshin

Earthquake

Energy

Coal

Petroleum

resources

●1922 Established with capital of 22 million yen

events

●1910 Establishment of Okazaki Gas Co., Ltd.

●1970 Start of operations at Sorami Works

●1985 Establishment of Technical Research Institute

●1925 Establishment of Gifu Gas Co., Ltd.

●1958 Start of operations at Komei Works

●1977 Start of operations at Chita LNG Terminal

●1991 Start of operations at

●1930 Establishment of Godo Gas Co., Ltd.

Start of use of Indonesian LNG

Yokkaichi Works

Company

●1942 Establishment of Mizushima Gas Co., Ltd.

●1987

Service Office

●1978 Start of conversion to natural gas

(from 6C/19MJ to 13A/46MJ) ●1993 Completion of conversion

to natural gas

●1992 Opening of the Hokuriku

●1959 Establishment of Toho Liquefied Gas Co., Ltd.

Opening of Meiko

●1993 Opening of the Takayama

LPG Terminal

Service Office

Development

1998 Company name changed to Toho LPG & Coke Co., Ltd.●

Imaike area

Nagoya Sakae 3-chome area

Nagoya Station south area

Urban

Area heating

and cooling

●2005 Expo 2005 Aichi, Japan world exposition／Opening of Chubu Centrair International Airport

●2008 Global financial crisis

●2020 Spread of novel coronavirus infections

●2011 Great East Japan Earthquake

Natural gas

●2009 Completion of circularization of transportation trunk pipeline

●2001 Start of operations at Chita-Midorihama Works

●2013 Completion of Cross-Ise Bay Pipeline

●2003 Merger of Godo Gas, Gifu Gas,

●2016 Entry into retail electricity business

and Okazaki Gas

●2017 Start of operations at Yokkaichi Works Power Generation

●2019 Acquisition of Yamasa Co., Ltd. as a 100% subsidiary

●2015 Change in standard calorific value for supplied gas (from 46MJ to 45MJ)

●2004 Acquisition of 4 companies, including Godo Liquefied Gas Co., Ltd., and Toeki Kyokyu Center as 100% subsidiaries

●2005 Company name changed to Toho Liquefied Gas Co., Ltd.

●2020 Opening of Hamamatsu Service Office

Networking of area heating and

Opening of smart town

Nagoya Sakae 3-chome north area cooling in the Nagoya Station area

Minato AQULS

Offering products and security services that provide enriched lives as well as safety and peace of mind

P29

Secure Stable Supply and Safety

P31-32

Excellent Products and Services

Technologies that enable high-degree application and efficient use of natural gas, our core product, along with taking up the challenge of achieving carbon neutrality

Taking Up the Challenge of Achieving Carbon Neutrality

Group

Eco Stations

Gas

Sakurada Eco Station

Natural gas trucks

Use

Toho

Air

Gas absorption

Conditioning

water chillers

Historyof

Industrial/Commercial

(natural chillers)

Gas heat-pump air conditioners (GHP)

Industrial/

Commercial-use

Equipment

Kilns(blast burners)

Cogeneration

Gas turbines

Genelite

Industrial

Furnaces

Single-endradiant-tube burners

for heat treatment

Immersion-tube package burners

Residential

clothes

with microwave

heaters

and water

Floor heaters heater/dryers

with air purifiers

use

Gas

Gas rice cookers

Gas fan

Heaters

Bath-room

Gas fan heaters

dryers

warmers

heaters

*1 The city gas sales volume and number of customers (meters installed) are based on non-consolidated figures before FY1998 and consolidated figures since FY1999.

3 *2 LPG sales volume through FY2000 is based on non-consolidates figures from Toho Liquefied Gas Co., Ltd.

*3 Source: Number of homes in three Tokai prefectures: National Census (Ministry of Internal Affairs and Communications)

Hydrogen

Toyota Ecoful Town

P19- 25

Station

Hydrogen Station

Efforts in the Use of Digital

Technologies

P26 -28

Promotion of Technical Development

GHP XAIR

GHP XAIR Ⅱ

GHP XAIR Ⅲ

P37

Global Warming Countermeasures

P46 -48

Suzu-chu®*5

High-efficiency

Simple once-through

Potential Growth

hot-water boilers

steam boilers

Ultra-high-efficiency

Ultra-high-efficiency

of the Region

large gas engines

large gas engines

450 kW high-efficiency gas engines

Manufacturing is a strength of the three

(MACH Gas Engine)

(green gas engines)

Tokai prefectures where the company

does business, accounting for 20% of

Package recuperative

the monetary value of Japan's product

shipments, making it a region with

burners for

aluminum-melting

Regenerative burners

High-efficiency

High-efficiencyimmersion-tube

strong growth potential

furnaces

single-endradiant-tube

heating burners for aluminum

for heat treatment

burners for heat treatment

melting and holding furnaces

Efforts to Support Manufacturing

and Other Business in the Region

IT

Server

P30

Implementation

ENE FARM

in Gas

type S

Eco-JOES

Mist-type

Si sensor

Equipment

Expanding service areas for natural gas

bath-room

gas stoves

ENE FARM

Gas stoves

heater/dryers

P32

*4 Source: Gross prefectural production in three Tokai prefectures: Annual Report on Prefectural Accounts (Cabinet Office)

*5 Suzu-chu®is a registered trademark of Osaka Gas Co., Ltd.

Toho Gas Group Integrated Report 2021

4

Message from the Top

We extend our greetings to all our stakeholders on the occasion of publication of this Integrated Report 2021.

Yoshiro Tominari

Nobuyuki Masuda

First of all, we would like to extend our sincerest sympathies to all who have been affected by COVID-19. We would also like to express our admiration for the healthcare providers and others who have done their utmost to prevent the spread of infection, and offer them our deepest thanks. In fiscal 2020, society and the economy were impacted tremendously by the spread of COVID-19. Amid such circumstances, we, as a company supporting the energy infrastructure, we fulfilled our duty of ensuring stable supply while devoting the utmost consideration to the safety of customers, employees, and their families. We are proud of each and every one of our employees, who accomplished this with high awareness. Further, in addition to the effects of COVID-19, we were exposed to violent change, such as rising prices in the wholesale electricity market as the cost of crude oil and LNG skyrocketed, but along with the recovery of the regional economy centered on manufacturing industry, but through the support of our customers and stakeholders and the accumulation of steady effort on the part of every person in the Group, even including ENEDO, gas engineering companies, and other affiliates, we were able to curtail the impact on company operations to a minimum.

Ordinary income for the fiscal year ending March 31, 2021, was sharply down 32.9% compared with the previous year, but we were able to secure profit in line with the plan announced in the first quarter, and even to affirm at an early date that dividends would be sustained. We also regard the progress under the Medium-term Management Plan, for which fiscal 2021 is the final year, to be reasonable. Sales volumes for natural gas and LPG fell short of the plan, but as regards other numerical targets, along with the electricity business, which has already attained its target, the target of a total operating cash flow of 160 billion yen or more over the three years was more than 80% reached in the second year. With respect to individual initiatives as well, domestically we participated in the planning for the privatization of Kanazawa's municipally operated gas business, and, overseas, the decision was made to take part in planning for liquification in the LNG Canada project. We also advanced development of sources of renewable electricity and augmented services that utilize the ASMITAS life service platform. In these and other ways, we made solid progress in Japan and abroad for business operations that enjoy promising outlooks.

Toho Gas announced changes in executive management at the shareholders meeting in June 2021. To provide speedy responses on the part of the company with respect to accelerating social change, we will demonstrate leadership grounded in new systems and address challenges with the unified Group behind us. We will address the matter of how we can be of use to customers and the regional community, which is the basis of the Toho Gas Group's business operations, and meet the expectations of various stakeholders through our solutions.

The basis for these efforts is our thinking behind ESG matters. To enable us to perpetuate the management philosophy of Sakura Okamoto, Toho Gas's first president, and continue to meet the expectations and trust of our stakeholders, we will press ahead with ESG management throughout the entire Group and contribute to achieving SDGs.

We ask for your continued support.

Chairman

President

ChairmanPresident

5

Toho Gas Group Integrated Report 2021

Toho Gas Group Integrated Report 2021

6

gas-fillingand delivery bases

Value Creation Process

Grow with Energy-Go beyond

Under the spirit of "Customer First," which has been cultivated since

Energy its foundation, the Toho Gas Group aims to support customers' lives and the manufacturing activities of companies operating in the region

through energy supply, and to contribute to regional development and the creation of a low-carbon society.

INPUT

（as of March 31, 2021）

Chances and risks

Procurement of energy resources

Approx. 2.7 million tonnes

associated with

LNG

energy liberalization

from 5 countries

LPG

Approx. 600,000 tonnes

Materiality

(Key Issues)

1

Provision of energy and

related services

2

Ensuring safety and

security, and stable

supply

3

Contribution to local

communities

OUTPUT

FY2021 Medium-term

FY2020 results

Management

Plan Targets

Number of

2.533 million

2.55 million

Natural customers*1

gas

Sales volume*2

3.7 billion m3

4.1 billion m3

Number of

594 thousand

590 thousand

customers*3

OUTCOME

Value provided to stakeholders

Customers P29 - 36

  • Safety and security
  • Supporting lives and manufacturing

Environment External

Changes Expected

Trends in

carbon neutrality

Rapid advancement

and social penetration

of digital technology

Stable gas supply infrastructure

City gas works

3 works and a calorific

value adjustment center

Pipeline length

Approx. 30,000 km

LPG supply network

Meiko LPG Terminal (secondary terminal)

4

Realization of a society

in harmony with the

environment

5

Reinforcement of human

resources

Compliance and Governance

ＬＰＧ

Sales volume

462 thousand tonnes

535 thousand tonnes

Number of

438 thousand

300 thousand

Electricity

customers

Sales volume

1.6 billion kWh

1.0 billion kWh

*1) Number of meters installed

*2) Including LNG sales volume

*3) Including the number of customers based on commissioned business for delivery

FY2019-FY2021

FY2020 results Medium-term

Management Plan Targets

Local communities P17 - 25・41 - 58

  • Contribution to creation of a low-carbon society and to carbon neutrality
  • Social contribution activities

the in

Depopulation, aging

and diversification

of values

Transformations in

Behavioral Patterns

under the

COVID-19 Pandemic

23

Power-generation facilities

Yokkaichi Works 16.5 MW

Amount handled of renewable

31MW

energy power sources*

  • The amount handled of renewable energy power sources includes all power sources developed and owned in Japan and overseas, feed-in tariff (FIT) power generation, and procurement.

City gas service area

54 cities, 21 towns and 1 village

in three prefectures of the Tokai region

FY2019 - FY2021

Medium-Term

Management Plan

Strategy

Further Growth of the

1

City Gas Business

Strategy

Development into

2

a Total Energy Provider

Strategy

Taking on

3

New Scopes

Reinforcing the business foundation of the Toho Gas Group

Operating cash flow

64.3 billion yen

Investment into the

27.7 billion yen

city gas business

Investment into

16.7 billion yen

growth businesses

ROA

1.5 %

FY2020 results

Amount of reduced

360 thousand tonnes *4

CO₂ emissions at

customer locations

*4) Period cumulative value for FY2019 to FY2021

Cumulative total of 160.0 billion yen and over

Cumulative total of 80.0 billion yen and over

Cumulative total of 60.0 billion yen and over

Average 3% and over

FY2019-FY2021 Target

600 thousand tonnes *5

*5) 3-year cumulative value

Shareholders and investors P59・60

  • Corporate value enhancement
  • Stable return to shareholders

Partner companies P50・58・67 - 70

  • Collaboration with subcontractors
  • Fair and unbiased transactions

Employees P61 - 66

  • Respect for human rights
  • Creation of a pleasant working environment

7

Human resources

Number of employees 6,225

City gas

LPG

Electricity

business

business

business

Group businesses and new businesses

FY2020 results

FY2020 Target

ratio

2.4 %

2.2 %

Female manager

Sustainable Development

Goals (SDGs)

The SDGs are 17 goals with 169 targets set to achieve a sustainable society.

P40

Toho Gas Group Integrated Report 2021

8

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TOHO GAS Co. Ltd. published this content on 11 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 November 2021 15:38:12 UTC.