Results Bulletin:2nd Quarter ended September 2023

October 26, 2023 at 02:10 am EDT

October 26, 2023

Consolidated Financial Results Bulletin for the 2nd Quarter Ended September 30, 2023 (J-GAAP)

Tokyo Gas Co., Ltd.

Securities code:

9531

Stock listings:

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

Tokyo Stock Exchange, Nagoya Stock Exchange

Representative:

Mr. SASAYAMA Shinichi, Representative

Corporate Executive Officer, President and CEO

Contact:

Mr. KOMORI Rikiya, Chief Manager,

Location of head office: Tokyo

Consolidated Settlements Sect.

Scheduled date of the filing of quarterly report:

November 10, 2023

Scheduled date of the start of dividend payments:

November 29, 2023

Preparation of 2Q earnings presentation material (yes/no): Yes

Holding of 2Q earnings announcement (yes/no):

Yes (for institutional investors)

(Amounts are rounded down to the nearest million yen)

1. Consolidated Performance for 2nd Quarter (from April 1, 2023 to September 30, 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

Six months ended

1,272,731

-6.5%

129,740

43.4%

147,645

35.9%

103,983

45.1%

Sep. 30, 2023

Six months ended

1,361,277

57.1%

90,498

129.0%

108,652

168.2%

71,640

161.6%

Sep. 30, 2022

Note: Total comprehensive income

Six months ended September 30, 2023: 208,103 million yen (53.1%) Six months ended September 30, 2022: 135,924 million yen (251.8%)

	Profit per share	Diluted profit
	per share


Six months ended	245.77	yen	-
Sep. 30, 2023

Six months ended	164.71	yen	-
Sep. 30, 2022

(2) Consolidated Financial Position

				(Unit: million yen)
		Total assets	Total net assets	Equity ratio

As of Sep. 30, 2023		3,571,631	1,717,855	47.1%
As of Mar. 31, 2023		3,581,425	1,589,301	43.5%

Reference: Shareholders' equity
As of September 30, 2023: 1,682,118 million yen	As of March 31, 2023: 1,558,404 million yen

2. Dividend

		Dividend per share (Unit: yen)

	End of 1Q	End of 2Q	End of 3Q		End of 4Q	Annual

FY2022 ended Mar. 31,	-	32.50		-		32.50	65.00
2023

FY2023 ending Mar. 31,	-	32.50
2024

FY2023 ending Mar. 31,				-		32.50	65.00
2024 (Forecast)

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

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	Net profit attributable	Profit
	to owners of parent	per share

Full-year	2,761,000	-16.1%	154,000	-63.5%	158,000	-61.4%	116,000	-58.7%	281.11 yen

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

*Notes

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: 102 (Increased by 2 companies and decreased by 2 companies)
Number of subsidiaries and affiliates accounted for by equity method: 17 (Increased by 2 companies)
Application of accounting treatment peculiar to quarterly consolidated financial statement preparation (yes/no): Yes
Note: Please see page 9 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.
Change in accounting policies or estimates and retrospective restatements

Change in accounting policies in accordance with revision of accounting standards: No
Change in accounting policies other than item 1) above: No
Change in accounting estimates: No
Retrospective restatements: No

Number of issued shares (common stock)

					(Unit: share)
1)	Number of issued shares at end of period	Sep. 30, 2023	434,875,059	Mar. 31, 2023	434,875,059

	(including treasury stock):


2)	Number of shares of treasury stock	Sep. 30, 2023	21,595,887	Mar. 31, 2023	1,455,205
	at end of period:


3)	Average number of shares during period:	Apr. - Sep. 2023	423,096,957	Apr. - Sep. 2022	434,954,007

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 elements of great uncertainty, including the impact of the state of affairs between Russia and Ukraine. The forecasts may change significantly depending on future developments. For details of the above forecasts, please refer to "1. Overview of Business Performance, etc. (2) Future outlook" on page 3 of the Attachment and "1. Overview of Business Performance, etc. (3) Revisions to FY2023 results forecasts" on page 4 of the Attachment.
2. The information related to this Financial Results will be posted on the Web site of the Company.

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	2,421,600	-19.3%	69,600	-76.9%	102,600	-66.2%	87,200	-57.5%	211.31	yen

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

Contents of Attachment
1. Overview of Business Performance, etc	2
(1)	Overview of business performance of the 2nd quarter	2
(2)	Future outlook	3
(3)	Revisions to FY2023 results forecasts	4
2. Consolidated Financial Statements and Main Notes	5
(1)	Consolidated balance sheets	5
(2)	Consolidated statements of income and comprehensive income	7
	Consolidated statement of income	7
	(Six months ended September 30, 2023)
	Consolidated statement of comprehensive income	8
	(Six months ended September 30, 2023)
(3)	Notes on consolidated financial statements	9
	(Note on going concerns' premise)	9
	(Additional information)	9
	(Significant changes in shareholders' equity)	9
	(Application of accounting treatment peculiar to quarterly consolidated financial statement preparation)	9

1. Overview of Business Performance, etc.

Overview of business performance of the 2nd quarter

Six months ended September 30, 2023			(Unit: million yen)
		Energy solution	Network	Overseas	Urban
		development

	FY2023	1,153,073	153,433	64,677	35,489
	(% of total)	(82.0%)	(10.9%)	(4.6%)	(2.5%)
Sales	FY2022	1,254,795	157,421	75,853	30,190
(% of total)	(82.6%)	(10.4%)	(5.0%)	(2.0%)

	Amount of change	-101,722	-3,988	-11,176	5,299
	Rate of change	-8.1%	-2.5%	-14.7%	17.6%
	FY2023	1,023,900	173,443	43,953	24,306
	(% of total)	(80.9%)	(13.7%)	(3.5%)	(1.9%)
Operating	FY2022	1,174,351	173,570	42,389	22,404
expenses	(% of total)	(83.1%)	(12.3%)	(3.0%)	(1.6%)
	Amount of change	-150,451	-127	1,564	1,902
	Rate of change	-12.8%	-0.1%	3.7%	8.5%
	FY2023	130,192	-20,010	21,700	11,566
	(% of total)	(90.7%)	(-13.9%)	(15.1%)	(8.1%)
Segment	FY2022	80,463	-16,149	36,472	8,183
profit/loss	(% of total)	(73.8%)	(-14.8%)	(33.5%)	(7.5%)
	Amount of change	49,729	-3,861	-14,772	3,383
	Rate of change	61.8%	-	-40.5%	41.3%
Notes:

Figures for sales include internal transactions. Figures for operating expenses do not include expenses that cannot be allocated to specific segments.
Figures for segment profit/loss are adjusted against the amount based on operating profit/loss of consolidated financial statements plus or minus investment income or loss on equity method.

				Apr. - Sep. 2023	Apr. - Sep. 2022	Change	% change
No. of customers for city	Thousands	8,754	8,672	82	0.9
gas retail sales

No. of customers (meters)	Thousands	12,376	12,252	124	1.0
volume	Residential	Mil. m3	974	1,040	-66	-6.3
	Commercial	Mil. m3	1,104	1,073	31	2.9

sales		Industrial	Mil. m3	2,336	3,028	-692	-22.9
	Subtotal	Mil. m3	3,440	4,101	-661	-16.1
gas
Supplies to other utilities	Mil. m3	714	744	-30	-3.9
City
Total	3	5,128	5,884	-756	-12.9
	Mil. m
Average temperature	°C	23.8	22.7	1.1	-
Notes:

No. of customers for city gas retail sales indicates the number of billed customers for city gas retail sales.
No. of customers (meters) indicates the number of meters as a gas pipeline service provider.
"Commercial" indicates sales to commercial, public and medical institutions.
City gas sales volumes are on the basis of 45MJ/m3.

< Consolidated Electric Power Sales Volume, etc.>

			Apr. - Sep. 2023	Apr. - Sep. 2022	Change	% change
No. of customers for	Thousands	3,697	3,190	507	15.9
electric power retail sales

Electric	Retail	million kWh	6,460	5,412	1,048	19.4
power
Wholesale etc.	million kWh	6,110	11,606	-5,496	-47.4
sales

Total	million kWh	12,570	17,018	-4,448	-26.1
volume

Note: No. of customers for electric power retail sales indicates the number of billed customers for electric power retail sales.

				Apr. - Sep.		Apr. - Sep.	Change		Crude oil		Apr. - Sep.			Apr. - Sep.	Change
¥/$ rate		2023						2022			price		2023			2022

				141.06		134.03	7.03			($/bbl)		83.51		111.86	-28.35
(2) Future outlook
a. Consolidated city gas sales volume forecast for FY2023
													FY2023		FY2022		Change	% change
													(Forecast)		(Results)

City gas	Residential					Mil. m3		2,905				2,802			103		3.7
sales	Others							Mil. m3		8,939				9,772			-833	-8.5
volume	Total							Mil. m3		11,844	12,574			-730		-5.8
Average temperature					°C		17.1				16.8			0.3		-
Note: City gas sales volumes	are on the basis of 45MJ/m3.
b. Consolidated electric power sales volume forecast for FY2023
													FY2023		FY2022		Change	% change
													(Forecast)		(Results)

Total electric power sales		million kWh		26,220	34,445			-8,225		-23.9
volume

c. Consolidated earnings forecast for FY2023					(Unit: hundred million yen)
				Net sales		Operating profit			Ordinary profit		Profit attributable
								to owners of parent

FY2023 (forecast)				27,610			1,540				1,580					1,160
FY2022 (results)				32,896			4,214				4,088					2,809
Change				-5,286			-2,674				-2,508					-1,649
% change				-16.1			-63.5				-61.4					-58.7
< Foreign exchange rate and crude oil price forecast for FY2023>

				FY2023					FY2022	Change			Crude oil			FY2023		FY2022	Change
¥/$ rate			(Forecast)				(Results)			price			(Forecast)			(Results)

				143.03			135.50	7.53			($/bbl)		86.76		102.67	-15.91

Revisions to FY2023 results forecasts

				Profit attributable
	Net sales	Operating profit	Ordinary profit	to owners of	Profit per share
	(hundred million	(hundred million	(hundred million	parent
	(yen per share)
	yen)	yen)	yen)	(hundred million

				yen)
Previous forecast	26,920	1,500	1,370	1,010	245.27
(A)

Revised forecast	27,610	1,540	1,580	1,160	281.11
(B)

Difference (B-A)	690	40	210	150	-

Percentage	2.6	2.7	15.3	14.9	-
difference (%)

(Reference)	32,896	4,214	4,088	2,809	646.99
FY2022 results

non-consolidated results forecasts>
	Net sales	Operating profit	Ordinary profit	Profit	Profit per share
	(hundred million	(hundred million	(hundred million	(hundred million
	(yen per share)
	yen)	yen)	yen)	yen)

Previous forecast	23,774	813	1,119	939	228.03
(A)

Revised forecast	24,216	696	1,026	872	211.31
(B)

Difference (B-A)	442	-117	-93	-67	-

Percentage	1.9	-14.4	-8.3	-7.1	-
difference (%)

(Reference)	29,998	3,014	3,036	2,051	472.54
FY2022 results

As a result of reflecting the impact of recent energy price developments and the depreciation of the yen, the forecasts for both consolidated and non-consolidatedfull-year results for FY2023 have changed from the previous forecasts announced on July 27, 2023, as shown above.

Note: The above forecasts are based on information available at the time of the release of this document. Therefore, the actual results may differ from the stated forecast figures depending on various factors going forward.

2. Consolidated Financial Statements

(1) Consolidated Balance Sheets

				(Millions of yen)
			As of March 31, 2023	As of September 30, 2023

Assets
	Current assets

		Cash and deposits	453,502	438,898
		Notes and accounts receivable - trade, and contract	446,061	369,986
		assets

		Lease receivables and investments in leases	17,125	16,887
		Securities	10	-

		Merchandise and finished goods	6,030	49,330
		Work in process	15,653	22,710

		Raw materials and supplies	135,769	111,451
		Other current assets	145,882	156,161

		Allowance for doubtful accounts	(2,122)	(1,839)
		Total current assets	1,217,914	1,163,586

	Non-current assets
		Property, plant and equipment

		Buildings and structures, net	346,262	321,081
		Machinery, equipment and vehicles, net	921,572	904,261

		Tools, furniture and fixtures, net	10,714	10,276
		Land	197,245	180,667

		Leased assets, net	8,231	7,770
		Construction in progress	98,878	133,874

		Total property, plant and equipment	1,582,904	1,557,931
		Intangible assets

		Goodwill	6,410	6,020
		Other intangible assets	308,122	320,081

		Total intangible assets	314,533	326,102
		Investments and other assets

		Investment securities	278,497	328,153
		Long-term loans receivable	56,550	54,887

		Retirement benefit asset	8,809	9,656
		Deferred tax assets	32,849	30,972

		Other investments	93,649	104,228
		Allowance for doubtful accounts	(4,283)	(3,887)

		Total investments and other assets	466,073	524,010
		Total non-current assets	2,363,511	2,408,045

	Total assets	3,581,425	3,571,631

				(Millions of yen)
			As of March 31, 2023	As of September 30, 2023

Liabilities
	Current liabilities

		Notes and accounts payable - trade	63,845	80,623
		Short-term borrowings	6,674	6,748

		Current portion of bonds payable	20,000	10,000
		Current portion of long-term borrowings	59,973	67,315

		Income taxes payable	118,636	43,193
		Other current liabilities	337,028	269,447

		Total current liabilities	606,158	477,327
	Non-current liabilities

		Bonds payable	548,976	539,363
		Long-term borrowings	607,262	603,746

		Deferred tax liabilities	33,901	51,905
		Retirement benefit liability	64,570	64,577

		Provision for share awards for directors (and other	183	178
		officers)

		Provision for gas holder repairs	3,444	3,463

		Provision for safety measures	527	469
		Provision for contract loss in regards to appliance	5,176	5,000
		warranties

		Provision for point card certificates	654	615
		Asset retirement obligations	27,559	29,658

		Other noncurrent liabilities	93,709	77,469
		Total non-current liabilities	1,385,965	1,376,448

	Total liabilities	1,992,124	1,853,775
Net assets

	Shareholders' equity
		Share capital	141,844	141,844

		Capital surplus	-	0
		Retained earnings	1,310,908	1,400,009

		Treasury shares	(3,658)	(67,999)
		Total shareholders' equity	1,449,094	1,473,854

	Accumulated other comprehensive income
		Valuation difference on available-for-sale	30,954	58,926
		securities

		Deferred gains or losses on hedges	(9,626)	14,536
		Foreign currency translation adjustment	86,226	133,891

		Remeasurements of defined benefit plans	1,754	909
		Total accumulated other comprehensive income	109,309	208,263

	Non-controlling interests	30,896	35,737
	Total net assets	1,589,301	1,717,855

Total liabilities and net assets	3,581,425	3,571,631

Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income (For the six months)

				(Millions of yen)
			For the six months	For the six months
			ended September 30, 2022	ended September 30, 2023

Net sales	1,361,277	1,272,731
Cost of sales	1,138,194	1,026,446

Gross profit	223,083	246,285
Selling, general and administrative expenses	132,584	116,544

Operating profit	90,498	129,740
Non-operating income

	Interest income	648	3,671
	Dividend income	2,163	1,079

	Share of profit of entities accounted for using equity	3,426	2,379
	method

	Foreign exchange gains	15,928	14,804

	Miscellaneous income	11,860	8,391
	Total non-operating income	34,028	30,327

Non-operating expenses
	Interest expenses	7,075	9,092

	Miscellaneous expenses	8,798	3,330
	Total non-operating expenses	15,874	12,422

Ordinary profit	108,652	147,645
Extraordinary income

	Gain on sale of investment securities	2,708	2,499
	Gain on valuation of long-term loans receivable	-	2,494

	Total extraordinary income	2,708	4,994
Profit before income taxes	111,360	152,639

Income taxes	39,394	48,124
Profit	71,966	104,514

Profit attributable to non-controlling interests	325	531
Profit attributable to owners of parent	71,640	103,983

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Disclaimer

Tokyo Gas Co. Ltd. published this content on 26 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2023 06:08:32 UTC.

Market Closed - Japan Exchange Other stock markets 02:00:00 2024-05-01 am EDT			5-day change	1st Jan Change
3,591 ^JPY	+1.47%		-11.44%	+10.90%

12:16pm	For Japan Inc, the weak yen may be too much of a good thing	RE
Apr. 25	Nikkei says Soros Fund Among Investors In Japan Electricity Exchange Startup	RE

For Japan Inc, the weak yen may be too much of a good thing	06:16am	RE
Nikkei says Soros Fund Among Investors In Japan Electricity Exchange Startup	Apr. 25	RE
Tech Issues Roil Asian Stocks	Apr. 25	MT
Tokyo Gas Co.,Ltd. announces an Equity Buyback for 17,000,000 shares, representing 4.25% for ¥40,000 million.	Apr. 25	CI
Tokyo Gas Co.,Ltd. authorizes a Buyback Plan.	Apr. 24	CI
Japan Gas Association expects LNG prices to rise, tracking oil, if Strait of Hormuz blocked	Apr. 24	RE
Japan's Nikkei rises but caution before US earnings caps gains	Apr. 22	RE
Renova Completes 17.8 Billion Yen Share Allotment to Tokyo Gas	Apr. 17	MT
RENOVA, Inc. announced that it has received ¥17.8164 billion in funding from Tokyo Gas Co.,Ltd.	Apr. 16	CI
Japan to collaborate with US on cutting floating offshore wind costs	Apr. 11	RE
Credit Outlook, Tech Sector, Inflation Roil Asian Stock Markets	Apr. 10	MT
Japan's Nikkei falls on caution ahead of US inflation data	Apr. 10	RE
Japan's Nikkei slips on caution ahead of US inflation data	Apr. 09	RE
Renova Business Forms Capital, Business Alliance With Tokyo Gas	Apr. 02	MT
Japan's Mitsubishi invests in EIG's LNG company MidOcean Energy	Apr. 02	RE
Renova Shares Jump After News That Tokyo Gas Plans to Acquire Stake	Apr. 01	DJ
Renova to issue new shares worth $117.6 mln to Tokyo Gas	Apr. 01	RE
RENOVA, Inc. announced that it expects to receive ¥17.8164 billion in funding from Tokyo Gas Co.,Ltd.	Mar. 31	CI
Mitsubishi Teams Up with Engie and Others For Global e-NG Coalition	Mar. 20	MT
Mitsubishi, 7 others to form coalition to promote electric natural gas	Mar. 18	RE
TotalEnergies, Engie, Others Form Coalition to Support Use of E-natural Gas	Mar. 18	MT
TotalEnergies Forms Coalition With 7 Companies to Support E-Natural Gas Development	Mar. 18	DJ
TotalEnergies, 7 Other Firms Launch E-Natural Gas Coalition	Mar. 18	MT
TotalEnergies: creation of an e-gas coalition	Mar. 18	CF
Totalenergies Partners with Major International Companies to Support E-Ng Development	Mar. 18	CI

	1st Jan change	Capi.
TOKYO GAS CO., LTD.	+10.90%	9B
NATURGY ENERGY GROUP, S.A.	-12.15%	24.37B
ATMOS ENERGY CORPORATION	+2.50%	17.78B
GAIL INDIA LIMITED	+28.99%	16.47B
ADANI TOTAL GAS LIMITED	-5.96%	12.24B
OSAKA GAS COMPANY., LTD.	+16.98%	9.09B
PETRONAS GAS	+3.45%	7.47B
APA GROUP	-3.28%	6.93B
ALTAGAS LTD.	+8.02%	6.5B
CHINA GAS HOLDINGS LIMITED	-4.54%	5.11B

Tokyo Gas Co., Ltd.

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9531

JP3573000001

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