April 26, 2023

Consolidated Financial Results Bulletin for the Fiscal Year Ended March 31, 2023 (J-GAAP)

Tokyo Gas Co., Ltd.

Securities code: 9531

(URL https://www.tokyo-gas.co.jp/IR/english/index.html)

Representative:

Mr. SASAYAMA Shinichi, President

Contact:

Mr. KOMORI Rikiya, Chief Manager,

Consolidated Settlements Sect.

General shareholders' meeting schedule: Scheduled date of the filing of securities report: Scheduled date of the start of dividend payments: Preparation of earnings presentation material (yes/no): Holding of earnings announcement (yes/no):

Stock listings:

Tokyo Stock Exchange, Nagoya Stock Exchange

Location of head office: Tokyo

June 29, 2023

June 29, 2023

June 6, 2023

Yes

Yes (for institutional investors)

(Amounts are rounded down to the nearest million yen)

1. Consolidated Performance for FY2022 ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

(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

FY2022 ended

3,289,634

52.7%

421,477

230.5%

408,846

199.6%

280,916

193.5%

Mar. 31, 2023

FY2021 ended

2,154,860

22.1%

127,525

64.2%

136,481

93.6%

95,702

93.3%

Mar. 31, 2022

Note: Total comprehensive income

FY2022 ended March 31, 2023: 358,130 million yen (238.4%)

FY2021 ended March 31, 2022: 105,816 million yen (208.9%)

Diluted profit

Ratio of profit to

Ratio of

Ratio of

Profit per share

ordinary profit to

operating profit to

per share

shareholders' equity

total assets

net sales

FY2022 ended

646.99 yen

-

20.0%

12.1%

12.8%

Mar. 31, 2023

FY2021 ended

217.67 yen

-

7.9%

4.6%

5.9%

Mar. 31, 2022

Reference: Profit or loss on investment accounted for by equity method

FY2022 ended March 31, 2023: -4,450 million yen

FY2021 ended March 31, 2022: 3,725 million yen

Note: The numerical figures for FY2021 ended March 31, 2022 have been retroactively applied to reflect changes in accounting policies.

(2) Consolidated Financial Position

(Unit: million yen)

Total assets

Total net assets

Equity ratio

Net assets per share

As of Mar. 31, 2023

3,581,425

1,589,301

43.5%

3,595.60

yen

As of Mar. 31, 2022

3,187,627

1,281,150

39.3%

2,847.88

yen

Reference: Shareholders' equity

As of March 31, 2023: 1,558,404 million yen

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

Note: The numerical figures shown for FY2021 ended March 31, 2022 have been retroactively applied and have been restated owing to reshuffling to reflect retroactive application and changes to the presentation method in tandem with changes in accounting policy.

(3) Consolidated Cash Flows

(Unit: million yen)

Cash flows from

Cash flows from

Cash flows from

Cash and cash equivalents

operating activities

investing activities

financing activities

at end of period

FY2022 ended

487,030

-203,522

-22,403

453,432

Mar. 31, 2023

FY2021 ended

145,227

-224,656

90,490

179,699

Mar. 31, 2022

2. Dividend

Dividend per share (Unit: yen)

Total dividend

Dividend

payments

Payout ratio

End of

End of

End of

End of

on equity

Full-year

(Full-year)

(Consolidated)

(Consolidated)

1Q

2Q

3Q

4Q

(Unit: million yen)

FY2021 ended

-

30.00

-

35.00

65.00

28,585

29.9%

2.4%

Mar. 31, 2022

FY2022 ended

-

32.50

-

32.50

65.00

28,186

10.0%

2.0%

Mar. 31, 2023

FY2023 ending

-

32.50

-

32.50

65.00

-

Mar. 31, 2024 (Forecast)

3. Consolidated Results Forecast for FY2023 ending March 31, 2024 (April 1, 2023 - March 31, 2024)

(Unit: million yen)

(% of change from the corresponding

period of previous year)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Profit per

owners of parent

share

Full-year

2,897,000

-11.9%

150,000

-64.4%

137,000

-66.5%

100,000

-64.4%

256.90 yen

*Notes

  1. Significant changes in consolidated subsidiaries (changes in specified subsidiaries resulting in change of scope of consolidation during the year) (yes/no): No
    Reference: Scope of consolidation and application of equity method
    Number of consolidated subsidiaries: 102 (Increased by 2 companies and decreased by 13 companies)
    Number of subsidiaries and affiliates accounted for by equity method: 15 (Decreased by 1 company)
  2. 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
  4. Number of issued shares (common stock)

(Unit: share)

1)

Number of issued shares at end of

Mar. 31, 2023

434,875,059

Mar. 31, 2022

440,996,559

period (including treasury stock):

2)

Number of shares of treasury stock

Mar. 31, 2023

1,455,205

Mar. 31, 2022

1,448,431

at end of period:

3)

Average number of shares during

Apr. 2022- Mar.2023

434,188,168

Apr. 2021- Mar.2022

439,672,718

period:

(Reference)

1. Non-Consolidated Business Results for FY2022 ended March 31, 2023 (April 1, 2022 - March 31, 2023)

(1) Non-Consolidated Business Performance

(Unit: million yen) (% of change from the corresponding period of previous year)

Net sales

Operating profit

Ordinary profit

Net income

FY2022 ended

2,999,878

55.3%

301,426

480.6%

303,621

532.8%

205,171

442.9%

Mar. 31, 2023

FY2021 ended

1,931,053

19.7%

51,917

10.3%

47,983

2.6%

37,791

-11.1%

Mar. 31, 2022

Note: The numerical figures for FY2021 ended March 31, 2022 have been retroactively applied to reflect changes in accounting policies.

Profit per share

Diluted profit

per share

FY2022 ended

472.54 yen

-

Mar. 31, 2023

FY2021 ended

85.95 yen

-

Mar. 31, 2022

(2) Non-Consolidated Financial Position

(Unit: million yen)

Total assets

Total net assets

Equity ratio

Net assets per share

As of Mar. 31, 2023

2,696,080

991,764

36.8%

2,288.23 yen

As of Mar. 31, 2022

2,331,975

836,532

35.9%

1,903.17 yen

Reference: Shareholders' equity

As of March 31, 2023: 991,764 million yenAs of March 31, 2022: 836,532 million yen

Note: The numerical figures shown for FY2021 ended March 31, 2022 have been retroactively applied and have been restated owing to reshuffling to reflect retroactive application and changes to the presentation method in tandem with changes in accounting policy.

2. Non-Consolidated Results Forecast for FY2023 ending March 31, 2024 (April 1, 2023 - March 31, 2024)

(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

2,600,800

-13.3%

69,900

-76.8%

70,500

-76.8%

51,900

-74.7%

133.33 yen

  • 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 earnings forecasts include major uncertain elements, including the impact due to the state of affairs in Russia and the Ukraine. There is potential for major volatility to these forecasts depending on trends going forward.
    For details of the above forecasts, please refer to "1. Overview of Business Performance, etc. (2) Future outlook" on page 6 of the Attachment.
  2. The information related to this Financial Results will be posted on the Web site of the Company.

Contents of Attachment

I. Overview of Business Performance, etc

2

(1)

Overview of business performance and financial position of FY2022

2

(2)

Future outlook

6

(3)

Basic policy on profit sharing and dividends for FY2022 and FY2023

7

II.

Group Companies

7

III. Basic Concept Regarding Selection of Accounting Standards

7

IV. Consolidated Financial Statements and Main Notes

8

(1)

Consolidated balance sheets

8

(2)

Consolidated statements of income and comprehensive income

10

(Consolidated statement of income)

10

(Consolidated statement of comprehensive income)

11

(3)

Consolidated Statements of Changes in Equity

12

(4)

Consolidated statements of cash flows

16

(5)

Notes on consolidated financial statements

19

1)

(Note on going concerns' premise)

19

2)

(Additional information)

19

3)

(Change in accounting policies)

19

4)

(Changes in presentation)

20

5)

(Segment information, etc.)

21

6)

(Per share information)

25

7)

(Material subsequent events)

25

V.

Non-Consolidated Financial Statements

26

(1)

Balance sheets

26

(2)

Statements of income

28

1

  1. Overview of Business Performance, etc.
  1. Overview of business performance and financial position of FY2022 (Business performance of FY2022)
    During the fiscal year under review, in the economy in Japan, weakness continued to linger in some areas of exports and production, but the economy modestly rebounded owing to recovery trends in consumer spending and capital expenditures. Moving forward, further recovery is expected owing to benefits from various policies as the society deals with COVID- 19. Nonetheless, the economic outlook continues to look murky due primarily to recent price hikes, supply constraints, and fluctuations in the financial and capital markets.
    Amid this economic climate, the intensification of competition across industry boundaries is increasing further reflecting the full deregulation of retail gas sales in April 2017, following the full deregulation of retail electric power sales in April 2016. Also, given in part the global trend for decarbonization, the environment surrounding the energy business has undergone a substantial change. Given this backdrop, the Tokyo Gas Group actively undertook various measures to enhance the added value we deliver to customers in Japan and abroad through the development of a comprehensive energy business and globalization, and to ensure that the Tokyo Gas Group continues to be the group that customers select.
    In November 2021, the Company formulated Compass Action, a detailed roadmap for achieving the Group's management vision, Compass 2030, and on April 1, 2022, transitioned to a holding company structure to build a system that will embody this vision. In light of this, the Company has trimmed down the number of reporting segments to four, the "energy solution," "network," "overseas," and "urban development" segments, starting in FY2022, in comparison with its previous five report segments, which were "gas," "electric power," "overseas," "energy related," and "real estate."
    In the energy solution segment in the fiscal year under review, city gas sales volume decreased year-on-year reflecting a decline in residential and commercial demand mainly due to high temperatures. Electric power sales also rose. Although this segment was also impacted by a contraction in demand from customer staying at home, sales volume climbed, mainly accompanying a rise in the number of retail sales transactions. In addition, in wholesale sales, there was an uptick in sales volume owing to an increase in demand at wholesale customers.
    In the network segment, consignment revenue was impacted by high temperatures during the winter months. In the overseas segment, the balance of income and expenses improved primarily reflecting a hike in selling prices chiefly in the LNG business in Australia and North America owing to impact from soaring market prices globally, and as the yen depreciations in value against the US dollar. In the urban development segment, there was sizeable improvement in room occupancy rates in the hotel business.
    Reflecting these economic conditions and changes in the business climate, consolidated net sales for the fiscal year under review totaled ¥3,289.6 billion, an increase of 52.7% year on year, and operating expenses were ¥2,868.1 billion, a growth of 41.5% year on year.
    Consequently, operating profit was ¥421.4 billion, a rise of 230.5% year on year, and ordinary profit totaled ¥408.8 billion, an improvement of 199.6% year on year. Meanwhile, profit attributable to owners of the parent came to ¥280.9 billion, a growth of 193.5% year on year. This reflected the following. The Company posted ¥3.7 billion in gain on sales of investment securities and ¥3.5 billion in gain on a business transfer, as extraordinary income. Meanwhile, as extraordinary losses, including income taxes, the Company posted a ¥4.0 billion in impairment loss in the energy solutions segment, a ¥2.4 billion in loss on the valuation of investment securities and a ¥2.1 billion in loss on the valuation of long-term loans. That being said, in the "Segment summary" below, given it is difficult to prepare information related to the numerical figures for sales and profit in the previous consolidated fiscal year for the new reporting segments, for "energy solutions" and "network," only earnings for the consolidated fiscal year under review are presented.
1) Energy solution

Segment sales totaled ¥3,031.1 billion, mainly reflecting an increase in the unit sales price owing to resource cost adjustments and a rise in electrical power sales.

Operating expenses stood at ¥2,665.1 billion, owing in part to an upward trend from the previous fiscal year in crude oil prices.

Accordingly, operating profit in this segment came to ¥365.9 billion. (Gas)

In the fiscal year under review, the sales volume for city gas, a major business in the Energy Solution segment, was 12,574 million m3, a decline of 4.4% year on year. This includes residential demand of 2,802 million m3 (down 9.1% year on year), and commercial demand was 2,224 million m3 (a drop of 1.4% year on year), due to a fall in demand primarily reflecting high temperatures.

Industrial demand was 5,932 million m3 (a decrease of 4.3% year on year) owing in part to slow down in operations at users.

Supply to other utilities was 1,616 million m3 (up 0.4% year on year) mainly reflecting an increase in operations at other utilities.

2

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Tokyo Gas Co. Ltd. published this content on 26 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2023 05:16:03 UTC.