Toho Gas Group Medium-Term Management Plan FY2019-FY2021[PDF : 3,756KB]

Toho Gas Group

Medium-Term Management Plan

Grow with Energy-Go beyond Energy

FY2019 - FY2021

November 2018 Toho Gas Co., Ltd.

Contents

Ⅰ . New Medium-Term Management Plan

Ⅱ. Three Key Strategies

-Strategy 1- Further Growth of the City Gas Business 7

-Strategy 2- Development into

a Total Energy Provider 13

-Strategy 3- Taking on New Scopes 18

Ⅲ. Reinforcing the Business Foundation of the Toho Gas Group

1. Reinforcement and Use of Human Resources 21

2. Improvement of Efficiency 22

3. Reform of the Organizational Structure 23

4. Technological Development for the Future 24

5. Promotion of ESG Management 25

Ⅳ. Management Goals

1. Energy Sales 28

2. Operating Cash Flow, ROA, etc. 29

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I. New Medium-Term Management Plan

• 1. Introduction

• 2. Expected Changes in the External Environment

• 3. Overview of the Medium-Term Management Plan

1. Introduction

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

We have implemented the measures set out in the current medium-term management plan to achieve our growth in the city gas business, and have worked to expand our business scope by entering the electricity business and strengthening our Group and new businesses.

It is expected in the future that competition among energy companies will become fiercer in association with energy liberalization, and that the circumstances surrounding energy will change significantly due to various changes in the external environment. Under these circumstances, we need to survive such competition to continue to grow in the energy business and to accelerate our business structure reform for the future over the three years from FY2019 to FY2021.

By implementing our three key strategies while reinforcing our business foundation, we will further strengthen our position as an energy company that is trusted by customers and has strong roots in local communities, and further expand our business scope to achieve sustainable growth.

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2. Expected Changes in the External Environment

・ The improvement of an environment where various businesses can enter the energy business makes competition fiercer beyond the boundaries of business areas and categories.

Chances and risks associated with energy liberalization

・

Business alliances aimed at providing new services are developed, in addition to those in the procurement, production and retail fields.

・ Natural gas continues to be positioned as a major energy source that contributes to the further reduction of carbon emissions, and to be used and provided in wider areas.

Promotion of the further reduction of carbon emissions

・

With an increased interest in the further reduction of carbon emissions and decarbonization, there is an advancement in energy saving in various areas, from plants to households, and in the spread of distributed power supply systems involving renewable energy.

・ The rapid advancement of digital technology, including IoT, AI and big data, significantly changes the lives of people and the manufacturing process.

Rapid advancement and social penetration of digital technology

・

In addition to the progress of substitution of office work by RPA and AI, the further advancement of digital technology changes human roles.

・ The population of the three Tokai prefectures cannot be sustained at the same level and are expected to decline in the future, along with the further progression of aging of the population.

Depopulation, aging and diversification of values

・

Customer values are diversifying. The penetration of online shopping is progressing among all age groups, leading to the growing impact of digital channels.

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