Toho Gas : Presentation Material

TOHO GAS CO.,LTD.

Consolidated

Financial Results

Results for

the 2nd Quarter of FY2023 (April - September 2023)

October 31, 2023

Contents

1. Consolidated Results for the 2nd Quarter of FY2023
2. Consolidated Forecast for FY2023
3. Consideration for improving "Price-to-Book (P/B) Ratio"

Reference 1.

Medium-term Management Plan(from FY2022 to FY2025)

Reference 2.

Return to Shareholders

• 3
• 8
• 14
• 18
• 21

Earning forecasts and other forward-looking statements in this document are management's current views and beliefs in accordance with data currently available, and are subject to a number of risks,

uncertainties and other factors that may cause actual results to differ materially from those projected.

2

1．Consolidated Results for the 2nd Quarter of FY2023

（1）Number of customers, Sales Volume

Number of

customer accounts

Energy

Sales

Volume

		FY2023	FY2022	Change	Rate of	Notes
		Q2	Q2	Change
	Number of customer	2,963	2,896	67	2.3%
	accounts（thousand）
	City Gas	1,751	1,743	8	0.4%
	LPG*	612	605	7	1.1%
	Electricity	600	548	53	9.6%	Development
	* Including the number of customers based on commissioned business for delivery
	Number of Gas	2,589	2,564	25	1.0%	Development
	meters(thousand)
		FY2023	FY2022	Change	Rate of	Notes
		Q2	Q2	Change
	City Gas（million ｍ3）	1,603	1,663	-60	-3.6%
	Residential	203	218	-15	-6.8%	Impact of temperature -6, etc.
		1,400	1,446	-45	-3.1%	Impact of temperature +9
	Non-Residential	Capacity utilization of facilities -22
						Other specific factors -44, etc.
	LPG（thousand tons）	206	214	-8	-3.7%	High temperature, etc.
	Electricity	1,244	1,112	132	11.9%	Increase in customer base, etc.
	（million kWh）
	Average	24.3	23.8	0.5	－		3
	temperature (℃)

1．Consolidated Results for the 2nd Quarter of FY2023

（2）Sales, Incomes

				(¥ billion)
	FY2023	FY2022	Change	Rate of Change
	Q2	Q2
Net Sales	300.9	302.8	-1.9	-0.6%

	Cost of sales	210.9	232.8		-21.9	-9.4%
	Selling, General and		61.1		61.5		-0.3	-0.6%
	Administrative Expenses
	Operating income		28.8		8.4		20.3	242.3%
	Ordinary Income		31.9		9.8		22.1	225.5%
	Net Income Attributable to		24.5		6.8		17.7	257.0%
	Owners of the Parent
【Appendix】
		FY2023 Q2	FY2022 Q2	Change
	Crude Oil Price	＄83.5	/bbl	＄111.9	/bbl	-＄28.4	/bbl
	（CIF national average）
	Exchange Rate（TTM）	￥141.1	/＄	￥134.0	/＄	￥7.1	/＄	4

1．Consolidated Results for the 2nd Quarter of FY2023

（3）Segment information

Net Sales

Segment

income

					(¥ billion)
		FY2023	FY2022	Change	Rate of
		Q2	Q2	Change
	Gas	199.9	190.1	9.7	5.1%
	LPG and other Energies	44.4	50.7	-6.2	-12.3%
	Electricity	43.5	50.9	-7.4	-14.5%
	Others	25.5	22.8	2.6	11.8%
	Adjustments	-12.6	-11.9	-0.7	－
	Total Net Sales	300.9	302.8	-1.9	-0.6%
		FY2023	FY2022	Change	Rate of
		Q2	Q2	Change
	Gas	26.1	13.2	12.8	96.6%
	LPG and other Energies	0.5	-1.1	1.6	－
	Electricity	-1.2	-6.4	5.1	－
	Others	2.5	1.9	0.6	30.5%
	Adjustments	0.8	0.7	0.1	－
	Total Operating Income	28.8	8.4	20.3	242.3%		5

1．Consolidated Results for the 2nd Quarter of FY2023

（4）YoY Factorization in Ordinary Income

Ordinary Income +22.1（9.8⇒31.9）

(¥ billion)

Operating Income +20.4	Non-operating income +1.7
			（8.4⇒28.8）			（1.3⇒3.0）
					■ Effect of gas sales volume		-1.5
					■ Effect of Time lag, etc.		＋38.5
			Gas +13.0			＜Major factor breakdown＞
			（13.2⇒26.1）		 Time lag on cost		+59.0	(-37.5⇒21.5)
						adjustment system
						 Difference between purchase	-18.5(13.5⇒-5.0)
						price and consumption price
			Non-Gas＋7.4	■ Others		-24.0

（-4.8⇒2.7）	6

1．Consolidated Results for the 2nd Quarter of FY2023

（5）Financial Position

(¥ billion)

	FY2023	FY2022	Change
	Q2	Results
Total	711.0	693.5	17.5
assets
Net	442.1	402.5	39.6
assets
Interest-	137.2	146.6	-9.4
bearing
debts
Equity	62.2%	58.0%	4.2Pt
ratio
D/E ratio	0.31	0.36	-0.05
(times)

	FY2023	FY2022	Change
	Q2	Q2
Cash flows	39.1	4.9	34.1
from operating activities
Cash flows	-14.5	-23.8	9.2
from investment activities
(Free cash flows)	(24.5)	(-18.8)	43.3
Cash flows	-13.4	28.8	-42.2
from financing activities
Net (decrease) increase in	11.8	10.5	1.3
cash and cash equivalents
Cash and cash equivalents	45.7	42.6	3.0
at end of period
CAPEX	21.2	26.5	-5.2
（Including investment）
Depreciation	18.0	17.7	0.3

7

2．Consolidated Forecast for FY2023

（1）Number of Customers, Sales Volume *change from

the previous year.

Number of

customer accounts

Energy

Sales

Volume

		FY2023	FY2022	Change	Rate of	Notes
		Forecast	Results	Change
	Number of customer	2,975	2,921	54	1.8％
	accounts（thousand）
	City Gas	1,752	1,741	12	0.7％
	LPG*	619	604	15	2.4％
	Electricity	604	576	28	4.8％	Development
	* Including the number of	customers based on	commissioned business for delivery
	Number of Gas	2,599	2,579	19	0.7％	Development
	meters(thousand)
		FY2023	FY2022	Change	Rate of	Notes
		Forecast	Results	Change
	City Gas（million ｍ3）	3,454	3,454	0	0.0％
	Residential	591	583	8	1.4％	Impact of temperature +14, etc.
		2,863	2,871	-8	-0.3％	Impact of temperature +14
	Non-Residential	Capacity utilization of facilities -50
						Other individual factors +8, etc.
	LPG（thousand tons）	475	475	-0	-0.0％
	Electricity	2,492	2,369	123	5.2％	Increase in customer base, etc.
	（million kWh）
	Average	17.1	17.3	-0.2	－
	temperature (℃)

8

2．Consolidated Forecast for FY2023

（2）Number of Customers, Sales Volume *change from

the previous forecast.

Number of

customer accounts

Energy

Sales

Volume

		FY2023	Previous	Change	Rate of	Notes
		Forecast	Forecast	Change
	Number of customer	2,975	2,975	－	－	Unchanged from the previous forecast.
	accounts（thousand）
	City Gas	1,752	1,752	－	－	〃
	LPG*	619	619	－	－	〃
	Electricity	604	604	－	－	〃
	* Including the number of customers based on commissioned business for delivery
Number of Gas	2,599	2,599	-	-	Unchanged from the previous forecast.
	meters(thousand)
		FY2023	Previous	Change	Rate of	Notes
		Forecast	Forecast	Change
	City Gas（million ｍ3）	3,454	3,572	-118	-3.3％
	Residential	591	607	-16	-2.6％	Impact of temperature -16, etc.
	Non-Residential	2,863	2,965	-102	-3.4％	Capacity utilization of facilities -50
	Other specific factors -52, etc.
	LPG（thousand tons）	475	480	-5	-1.0％
	Electricity	2,492	2,539	-47	-1.9％
	（million kWh）
	Average	17.1	16.5	0.6	－
	temperature (℃)

9

【Reference】 Sales volume of City Gas

Sales volumes of City Gas Results/Forecast

（billion ㎥） 3.6

3.5		3.57
3.4	3.45		3.45
	Ａ	Ｂ	Ｃ
	FY2022	FY2023	FY2023
	Results	Previous Forecast	Forecast
	Ｂ－Ａ：＋0.12 bil ㎥	Ｃ－Ｂ：－0.12 bil ㎥

About

3.52

Ｄ

Current Baseline

（illustrative）

Ｄ－Ｃ：about＋0.07 bil ㎥

Breakdown by customer

Increase/

Decrease

Factors

Residential	＋0.02 bil ㎥
Non-Residential	＋0.1 bil ㎥

Under the assumptions both bounce back from previous year's high temperature and increase in operation of customer facilities, initially expected the increase vs. previous year.

Residential －0.02 bil ㎥ Non-Residential－0.1 bil ㎥

The downward revision reflects a temporary decrease in demand for production capacity at plants and due to delayed recovery from Corona and other factors, in addition to lower demand due to high temperatures that became apparent in the first half of the year, as well as lower demand due to specific factors such as energy conservation.

Residential	＋0.02 bil ㎥
Non-Residential	＋0.05 bil ㎥

Reflects the return of demand based on the assumption of normal temperatures, as well as the return of temporary demand reductions due to production operations at factories, etc. (Demand reductions due to specific factors such as energy conservation are not included in the baseline)

10