Tokyo Gas : Financial Results for FY2016 ended March 2017

April 28, 2017

(Amounts are rounded down to the nearest million yen)

1. Consolidated Performance for FY2016 ended March 31, 2017 (from April 1, 2016 to March 31, 2017)

   (Unit: million yen)

2. Consolidated Business Performance (% of change from the corresponding period of previous year)

   	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
   FY2016 ended Mar. 31, 2017	1,587,085	-15.8%	58,365	-69.6%	55,688	-70.5%	53,134	-52.5%
   FY2015 ended Mar. 31, 2016	1,884,656	-17.8%	192,008	11.8%	188,809	12.3%	111,936	16.8%

   Note: Total comprehensive income

   FY2016 ended March 31, 2017: 70,835 million yen (-21.2%) FY2015 ended March 31, 2016: 89,874 million yen (-28.6%)

   	Net profit per share	Diluted net profit per share	Ratio of net profit to shareholders' equity	Ratio of ordinary profit to total assets	Ratio of operating profit to net sales
   FY2016 ended Mar. 31, 2017	23.02 yen	-	4.8%	2.5%	3.7%
   FY2015 ended Mar. 31, 2016	46.68 yen	-	10.3%	8.4%	10.2%

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

   FY2016 ended March 31, 2017: 3,583 million yen FY2015 ended March 31, 2016: 2,122 million yen

   	Total assets	Total net assets	Equity ratio	Net assets per share
   As of Mar. 31, 2017	2,230,269	1,112,807	49.4%	479.74 yen
   As of Mar. 31, 2016	2,251,518	1,115,172	48.9%	460.35 yen

3. Consolidated Financial Position

   Reference: Shareholders' equity

   As of March 31, 2017: 1,101,498 million yen As of March 31, 2016: 1,100,271 million yen

4. Consolidated Cash Flows

5. (Unit: million yen)

   (Unit: million yen)

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
   FY2016 ended Mar. 31, 2017	238,734	(204,873)	(70,899)	132,566
   FY2015 ended Mar. 31, 2016	354,658	(236,406)	(75,418)	170,102

6. Dividend

   	Dividend per share (Unit: yen)					Total dividend payments (Full-year) (Unit: million yen)	Payout ratio (Consolidated)	Dividend on equity (Consolidated)
   	End of 1Q	End of 2Q	End of 3Q	End of 4Q	Full- year
   FY2015 ended Mar. 31, 2016	-	5.00	-	6.00	11.00	26,291	23.6%	2.4%
   FY2016 ended Mar. 31, 2017	-	5.50	-	5.50	11.00	25,256	47.8%	2.3%
   FY2017 ending Mar. 31, 2018 (Forecast)	-	5.50	-	27.50	-	45.7%

   *Since the Company plans to carry out a share consolidation at a ratio of 5 common shares to 1 effective October 1, 2017, the dividend per share at end of 4Q of FY2017 ending March 31, 2018 (forecast) indicates the amount after taking into consideration the impact of the share consolidation, and the total full-year dividend is shown as "-". Without taking into consideration the share consolidation, the dividend per share at end of 4Q of FY2017 ending March 31, 2018 (forecast) will be 5.50 yen, and the full-year dividend per share will be 11.00 yen. Please see "Explanation related to appropriate use of results forecasts and other items warranting special mention" for details.

7. Consolidated Results Forecast for FY2017 ending March 31, 2018 (April 1, 2017 - March 31, 2018)

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

   	Net sales		Operating profit		Ordinary profit		Net profit attributable to owners of parent		Net profit per share
   Full-year	1,813,000	14.2%	82,000	40.5%	75,000	34.7%	55,000	3.5%	120.23 yen

   *Net profit per share of the consolidated results forecast for FY2017 ending March 31, 2018 takes into consideration the impact of the share consolidation. Please refer to "Explanation related to appropriate use of results forecasts and other items warranting special mention" for details.

   *Notes

9. 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: 68 (Increased by 7 companies and decreased by 6 companies) Number of subsidiaries and affiliates accounted for by equity method: 8 (Increased by 1 company)

10. Change in accounting policies or estimates and retrospective restatements

11. Change in accounting policies in accordance with revision of accounting standards: Yes

12. Change in accounting policies other than item 1) above: No

13. Change in accounting estimates: No

14. Retrospective restatements: No

    Note: Please see page 17 of the Attachment, "(5) Notes on consolidated financial statements: 2) Change in accounting policies or estimates and retrospective restatements" for details.

15. Number of issued shares (common stock)

16. (Unit: share)

    1) Number of issued shares at end of period (including treasury stock):	Mar. 31, 2017	2,302,856,295	Mar. 31, 2016	2,396,778,295
    2) Number of shares of treasury stock at end of period:	Mar. 31, 2017	6,826,541	Mar. 31, 2016	6,700,416
    3) Average number of shares during period:	Apr. 2016- Mar. 2017	2,308,373,092	Apr. 2015- Mar. 2016	2,398,002,800

    (Reference)
17. Non-Consolidated Business Results for FY2016 ended March 31, 2017 (April 1, 2016 - March 31, 2017)

18. Non-Consolidated Business Performance

    (Unit: million yen)

    (% of change from the corresponding period of previous year)

    	Net sales		Operating profit		Ordinary profit		Net profit
    FY2016 ended Mar. 31, 2017	1,408,452	-16.0%	29,486	-81.0%	37,034	-77.4%	68,777	-26.5%
    FY2015 ended Mar. 31, 2016	1,677,345	-19.5%	155,028	22.9%	164,052	17.1%	93,566	-9.9%

    	Net profit per share	Diluted net profit per share
    FY2016 ended Mar. 31, 2017	29.79 yen	-
    FY2015 ended Mar. 31, 2016	39.02 yen	-

    	Total assets	Total net assets	Equity ratio	Net assets per share
    As of Mar. 31, 2017	1,847,788	842,515	45.6%	366.94 yen
    As of Mar. 31, 2016	1,810,657	840,020	46.4%	351.46 yen

19. Non-Consolidated Financial Position

20. Reference: Shareholders' equity

    As of Mar. 31, 2017: 842,515 million yen As of Mar. 31, 2016: 840,020 million yen

    (Unit: million yen)

21. Non-Consolidated Results Forecast for FY2017 ending March 31, 2018 (April 1, 2017 - March 31, 2018)

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

    	Net sales		Operating profit		Ordinary profit		Net profit		Net profit per share
    Full-year	1,606,000	14.0%	53,000	79.7%	53,000	43.1%	39,000	-43.3%	85.25 yen

    *Net profit per share of the non-consolidated results forecast for FY2017 ending March 31, 2018 takes into consideration the impact of the share consolidation. Please refer to "Explanation related to appropriate use of results forecasts and other items warranting special mention" for details.

    *Auditing procedures do not apply to the Consolidated Financial Results Bulletins.

    * Explanation related to appropriate use of results forecasts and other items warranting special mention

23. The above forecasts are based on the information available at the time this report was prepared, and Tokyo Gas makes no guarantee that these figures will be achieved. Actual results may differ from these forecasts for a variety of reasons. Please see page 6 of the Attachment "1. Overview of Business Performance, etc.: (2) Future outlook" for matters concerning the above forecasts.

24. The Company resolved at its board meeting on January 31, 2017 to submit the matter of share consolidation to the 217th annual shareholders meeting to be held on June 29, 2017, and plans to consolidate its common shares at a rate of 5 shares to 1 effective October 1, 2017 subject to approval at the annual shareholders meeting. The consolidated results forecast, non-consolidated results forecast, and dividend forecast for FY2017 ending March 31, 2018 converted to the basis before taking the share consolidation into consideration are as follows:

    • Consolidated results forecast for FY2017 ending March 31, 2018 Net income per share: 24.05 yen

    • Non-consolidated results forecast for FY2017 ending March 31, 2018 Net income per share: 17.05 yen

    • Dividend forecast for FY2017 ending March 31, 2018 Dividend per share: 11.00 yen

25. The information related to this Financial Results will be posted on the Web site of the Company.

Contents of Attachment
1. Overview of Business Performance, etc. 2

2. Overview of business performance and financial position of FY2016 2

3. Future outlook 6

4. Group Companies 7
5. Basic Concept Regarding Selection of Accounting Standards 8
6. Consolidated Financial Statements and Main Notes 9

7. Consolidated balance sheets 9

8. Consolidated statements of income and comprehensive income 11

   (Consolidated statement of income) 11

   (Consolidated statement of comprehensive income) 12

9. Consolidated statements of changes in net assets 13

10. Consolidated statements of cash flows 15

11. Notes on consolidated financial statements 17

12. (Note on going concerns' premise) 17

13. (Change in accounting policies or estimates and retrospective restatements) 17

14. (Segment information, etc.) 17

15. (Per share information) 20

16. (Material subsequent events) 20

17. Non-Consolidated Financial Statements 21

18. Balance sheets 21

19. Statements of income 23

20. 1