Tokyo Gas : Financial Results for FY2017 1Q ended June 2017

Securities code: 9531 Stock listings:

July 28, 2017

(URL http://www.tokyo-gas.co.jp/IR/english/index.html) Tokyo Stock Exchange, Nagoya Stock Exchange Representative: Mr. Michiaki HIROSE, President

Contact: Mr. Masami ADACHI, General Manager, Location of head office: Tokyo Consolidated Settlements Group

Scheduled date of the filing of quarterly report: August 14, 2017 Scheduled date of the start of dividend payments: -

Preparation of 1Q earnings presentation material (yes/no): Yes

Holding of 1Q earnings announcement (yes/no): Yes (for institutional investors)

(Amounts are rounded down to the nearest million yen)

1. Consolidated Performance for 1st Quarter (from April 1, 2017 to June 30, 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
   Three months ended Jun. 30, 2017	404,100	7.6%	34,673	-26.4%	35,887	-24.0%	27,855	-28.9%
   Three months ended Jun. 30, 2016	375,716	-22.9%	47,101	-50.2%	47,203	-49.5%	39,187	-46.6%

   Note: Total comprehensive income

   Three months ended June 30, 2017: 21,024 million yen (-22.4%) Three months ended June 30, 2016: 27,109 million yen (-64.5%)

   	Net profit per share	Diluted net profit per share
   Three months ended Jun. 30, 2017	12.18 yen	-
   Three months ended Jun. 30, 2016	16.71 yen	-

3. Consolidated Financial Position

4. (Unit: million yen)

   	Total assets	Total net assets	Equity ratio
   As of Jun. 30, 2017	2,215,967	1,113,975	49.8%
   As of Mar. 31, 2017	2,230,269	1,112,807	49.4%

   Reference: Shareholders' equity

   As of June 30, 2017: 1,102,755 million yen As of March 31, 2017: 1,101,498 million yen

5. Dividend

   	Dividend per share (Unit: yen)
   	End of 1Q	End of 2Q	End of 3Q	End of 4Q	Annual
   FY2016 ended Mar. 31, 2017	-	5.50	-	5.50	11.00
   FY2017 ending Mar. 31, 2018	-
   FY2017 ending Mar. 31, 2018 (Forecast)	5.50	-	27.50	-

   Note: Revision to the dividend forecast that has been disclosed lastly: No

   * 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.

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

   (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	1,808,000	13.9%	84,000	43.9%	80,000	43.7%	61,000	14.8%	133.50 yen

   Note: Revision to the consolidated results forecast that has been disclosed lastly: Yes

   * The Company plans to consolidate its common shares at a rate of 5 shares to 1 effective October 1, 2017. 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

7. Significant changes in consolidated subsidiaries (changes in specified subsidiaries resulting in change of scope of consolidation during the quarter) (yes/no): No

8. Application of accounting treatment peculiar to quarterly consolidated financial statement preparation (yes/no): Yes

   Note: Please see page 8 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.

9. Change in accounting policies or estimates and retrospective restatements

10. Change in accounting policies in accordance with revision of accounting standards: No

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

12. Change in accounting estimates: No

13. Retrospective restatements: No

14. Number of issued shares (common stock)

15. (Unit: share)

    1) Number of issued shares at end of period (including treasury stock):	Jun. 30, 2017	2,302,856,295	Mar. 31, 2017	2,302,856,295
    2) Number of shares of treasury stock at end of period:	Jun. 30, 2017	19,339,918	Mar. 31, 2017	6,826,541
    3) Average number of shares during period:	Apr. - Jun. 2017	2,287,687,430	Apr. - Jun. 2016	2,345,255,532

    • Quarterly review procedures do not apply to the Consolidate Financial Results Bulletins.

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

    • 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 3 of the Attachment "1. Overview of Business Performance, etc.: (2) Future outlook" for matters concerning the above forecasts.

    • A share consolidation was approved at the 217th annual shareholders meeting held on June 29, 2017, and thus the Company plans to consolidate its common shares at a rate of 5 shares to 1 effective October 1, 2017. 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: 26.70 yen

      • Non-consolidated results forecast for FY2017 ending March 31, 2018 Net income per share: 18.82 yen

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

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

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

      (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	1,601,000	13.7%	55,000	86.5%	56,000	51.2%	43,000	-37.5%	94.11 yen

      Note: Revision to the non-consolidated results forecast that has been disclosed lastly: Yes

    • The Company plans to consolidate its common shares at a rate of 5 shares to 1 effective October 1, 2017. 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.

    Contents of Attachment
16. Overview of Business Performance, etc. 2
17. Overview of business performance of the 1st quarter 2
18. Future outlook 3
19. Consolidated Financial Statements and Main Notes 4
20. Consolidated balance sheets 4
21. Consolidated statements of income and comprehensive income 6 Consolidated statement of income 6 (Three months ended June 30, 2017) Consolidated statement of comprehensive income 7 (Three months ended June 30, 2017)
22. Notes on consolidated financial statements 8
23. (Note on going concerns' premise) 8 (Significant changes in shareholders' equity) 8 (Application of accounting treatment peculiar to quarterly consolidated financial statement preparation) 8

    1