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© NIPPON GAS CO.,LTD. 0 日本瓦斯株式会社 1Q of FY Ending in March 2027 Financial Results Briefing Materials (30 th July 2026) N i p p o n G a s C o . , L t d .
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© NIPPON GAS CO.,LTD. 1 © NIPPON GAS CO.,LTD. 136 137 29 38 PF (+1) ₋ Recorded large orders in Construction PF Electricity (+2) - The rise in fuel prices has been more modest than projected, leading to expanded margin City Gas (+1) - The rise in raw material prices has been more modest than projected, leading to expanded margin - Growth in Equipment GP LP Gas (+6) - Residential sales volume increased due to low temperature in June - C&I margin expanded more than expected - Growth in Equipment GP 175 Key Points of GP +10 vs. plan 165 () against plan, and unit is in ¥100M Vs. Plan(1) Results for the 1Q of FYE 03/27 FYE 03/27 1Q (Apr.-June) Initial Plan Actual(¥100M) ■：Platform (PF) ■：Electricity ■：City Gas ■：LP Gas Breakdown of GP New Segment Reporting - Segment PF business from FYE 03/27 （¥100M） Initial Plan Actual +/- Gross Profit (GP) 165 175 +10 SG&A Expenses 136 137 +1 Operating Income (OI) 29 38 +9 Net Income 20 26 +6 EPS ¥18.9 ¥24.4 +¥5.5 Slide time lag Slide time lag GP SG&A Expenses GP SG&A Expenses OI OI GP exceeded the plan by +¥1.0B due to increases in both LP Gas margin and sales volumes. SG&A Expenses were controlled as planned (+¥0.1B vs. the plan). OI exceeded the plan by +¥0.9B. 113 119 44 45 3 55 6 (-1.6) (-1.1)
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© NIPPON GAS CO.,LTD. 2 © NIPPON GAS CO.,LTD. PF (+1) - Maintains the 2-4Q forecast, incorporating the 1Q beat into FY guidance Electricity (+2) - Maintains the 2-4Q forecast, incorporating the 1Q beat into FY guidance City Gas (+1) - Lower sales volume in the 2-4Q will be offset by improved margins, and forecast remains unchanged. Incorporates the 1Q beat into FY guidance LP Gas (-4) - C&I margin will shrink due to revised raw material prices - Sales volume will decrease due to a revision of temperature assumptions Vs. Plan(2) Forecast for FYE 03/27 Initial Plan 755 Detailed Profit Plan Initial Plan Latest Plan LP Gas residential margin (¥/kg) 232 234 CP average price (US$/t) 720 650 Average exchange rate (¥/US$) 160 160 Electricity margin (¥/kWh) 2.9 3.1 LNG CIF average price (JPY ‘000/t) 141 131 Average temperature (℃) 17.0 17.3 Key Points of GP Planning Latest Plan FYE 03/27 （¥100M） Initial Plan Latest Plan +/- Gross Profit (GP) 755 755 0 SG&A Expenses 555 555 0 Operating Income (OI) 200 200 0 Net Income 140 140 0 EPS ¥132.3 ¥132.3 ¥0 ±0 vs. plan () against plan, and unit is in ¥100M (¥100M) ■：Platform (PF) ■：Electricity ■：City Gas ■：LP Gas Breakdown of GP 755 555 555 200 200 Slide time lag Slide time lag GP SG&A Expenses GP SG&A Expenses OI OI Continues to project FY GP of ¥75.5B, factoring in current raw material price assumptions and the 2H temperature forecasts. FY OI forecast remains unchanged at ¥20.0B. 495 491 191 192 52 5417 18 (-11) (-11) New Segment Reporting - Segment PF business from FYE 03/27
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© NIPPON GAS CO.,LTD. 3 © NIPPON GAS CO.,LTD. 38 3 52 107 21 362 14 61 60 101 103 Vs. Plan(3) Operating Income (OI) Forecast for FYE 03/27 185 213 4Q: 3Q: 1Q: 2Q: 4Q: 3Q: 1Q: 2Q: 164 2-4Q 200 177 2-4Q GP -10 : LP Gas Residential -4 C&I -6 : Electricity 0 : City Gas 0 : Platform 0 SG&A Expenses -1 ： Others -１ 4Q: 3Q: 2Q: 1Q: 162 2-4Q Latest Plan (as at 30th July) 29 5 60 106 Initial Plan (as at 30th Apr.) 171 2-4Q ◆vs. Initial Plan 2-4Q (Initial Plan): 171 2-4Q (Latest Plan): 162 -9 4Q: 3Q: 2Q: 1Q: FYE 03/27(P)FYE 03/26(A)FYE 03/25(A) OI (¥100M) Quarterly OI (¥100M) FYE 03/27(P)FYE 03/26FYE 03/25 <Breakdown> Although OI in the 1Q exceeded the plan, continues to project FY OI of ¥20.0B (no change to the plan). This is taking into account current raw material price assumptions and the 2H temperature forecasts. (¥100M)
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© NIPPON GAS CO.,LTD. 4 © NIPPON GAS CO.,LTD. 491 192 54 18 16 486 66 768 Gross Profit (GP) 768 755 820 +52 SG&A Expenses 555 555 570 +15 Operating Income (OI) 213 200 250 +37 Net Income 148 140 175 +27 ROE 22% around 22% ROIC 13% around 13% 200 21 520 71 208 +34 +8 +5 +5 755 820 ■: Platform (PF) ■: Electricity ■: City Gas ■: LP Gas 《Breakdown of GP》 New Segment Reporting - Segment PF business from FYE 03/27 - Energy Solution is reported under the LP Gas business GP (¥100M) Total for all segments (¥100M) (vs. FYE 03/26) +/- Three-Year Plan vs. FYE 03/26 FYE 03/26 Vs. Plan(4) Three-Year Plan (FYE 03/27 - 03/29) The Details of Profits Plans to achieve OI of ¥25.0B in FYE 03/29 through organic growth. ROE of around 22% serves as NICIGAS' commitment to capital efficiency. Enhancing ROE through steady profit growth. FYE 03/27 FYE 03/29
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© NIPPON GAS CO.,LTD. 5 04/2026 Financial Results Briefing Materials © NIPPON GAS CO.,LTD. Breakdown of SG&A Expenses (¥100M) FYE 03/27 Progress vs. FY(P) Key Points FYE 03/26 FY (P) 1Q (A) FY (A) 1Q (A) 1. Personnel Cost 155 36 23% - Maintaining investments in human capital (4.0% salary increase rate) while controlling expenditures within the plan 151 35 2. D&A Expenses (*i) 82 19 23% 82 20 3. Cost to Acquire (*ii) 48 11 23% - -¥0.1B vs. plan. Reduced customer acquisition costs by streamlining sales operations 48 12 4. IT Related Expenses 41 11 27% 44 12 5. Commission, etc. (*iii) 50 12 24% - -¥0.1B vs. plan. Deferred to the 2Q or later 50 13 6. Gas Related Equipment, etc. 32 11 34% - +¥0.3B vs. plan. Impact of the advance procurement to mitigate future supply chain risks 35 8 7. Cost to Deliver LP Gas Cylinders 35 9 26% 33 8 8. Repair Expenses (*iv) 22 5 23% 24 4 9. Tax 21 6 29% 21 5 10. Communication Cost(*v) 12 3 25% 11 3 11. Advertising Expenses 12 3 25% 10 2 12. Travel Expenses 7 2 29% 7 2 13. Call Center 5 1 20% 5 1 14. Others 33 8 24% 34 9 Total 555 137 25% 555 134 Vs. Plan(5) SG&A Expenses *Figures rounded down to the nearest integer. Calculated the progress rate after converting FYE 03/27 plan and actual figures in ¥100M (*i) D&A expenses for IT are included in “4. IT Related Expenses”, and amortization of goodwill is included in “14. Others” (*ii) The amount of expenses for sales and services for LP Gas, City Gas, and Electricity business (*iii) Integrated cost for “safety inspection, meter reading, etc.” into “5. Commission, etc.” from FYE 03/24 (*iv) For repairing gas cylinders, gas equipment, etc. and cylinder inspection cost (*v) For communication with customers and telecommunication cost of Space Hotaru SG&A in the 1Q was largely in line with the plan. The cost increase stemming from inflation and the strategic advance procurement of materials and equipment were offset by initiatives including enhanced sales efficiency and optimal utilization of equipment. FY plan of ¥55.5B remains unchanged.
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© NIPPON GAS CO.,LTD. 6 04/2026 Financial Results Briefing Materials © NIPPON GAS CO.,LTD. 170 175 134 137 36 38 YoY(1) Summary GP SG&A Expenses GP SG&A Expenses OI OI +5 +3 +2 FYE 03/26 (1Q/Apr.-June) FYE 03/27 (1Q/Apr.-June) Net Income (¥100M) 26 26 EPS ¥24.1 ¥24.4 Sales Volume FYE 03/26 (1Q/Apr.-June) FYE 03/27 (1Q/Apr.-June) LP Gas (‘000t) 68 67 City Gas (’000t) 77 76 Electricity (GWh) 322 292 Gross Profit (GP)/SG&A Expenses/ Operating Income (OI) (¥100M) Breakdown of GP (¥100M) *Figures rounded down to the nearest integer *Disclosed after reclassifying into new segment FYE 03/26 (1Q/Apr.-June) FYE 03/27 (1Q/Apr.-June) FYE 03/26 (1Q/Apr.-June) FYE 03/27 (1Q/Apr.-June) GP increased due to expanded LP margin and PF also grew. Electricity decreased due to lower margin. Customer base has been steadily expanding. Curb growth in SG&A expenses, offsetting cost increases from personnel cost and inflation by optimizing customer acquisition. OI increased. 110 119 46 4510 54 6 26/3期1Q 27/3期1Q LP Gas City Gas Electricity +9 -5 -1 Platform (PF) +2 (+1.4) (-1.1)Slide time lag 170 175
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© NIPPON GAS CO.,LTD. 7 04/2026 Financial Results Briefing Materials © NIPPON GAS CO.,LTD. 418 37 36 27/3期 97 98 7 13 6 8 25/3期1Q 26/3期1Q Residential Gas (+1) - Increased driven by improved margin - Customer growth, but sales volume decreased. The impact of lower usage/customer due to high performance gas appliances C&I Gas (+6) - Margin expanded significantly due to the impact of the time slide lag Equipment, etc. (+2) - Increased in unit sales and higher gross profit per unit - Sales of hybrid water heaters are strong FYE 03/26 1Q FYE 03/27 1Q +/- Margin (¥/kg) (Residential + C&I) ¥153 ¥166 +¥13 Gas sales volume (’000t) Residential 42 41 -1 C&I 26 26 0 # of total customers (‘000) 1,036 1,057 +21 Hybrid water heaters (‘000 units) 1.5 1.8 +0.3 M&A - 0.6K customers/ 7 companies ■ Equipment, etc. ■ C&I Gas ■ Residential Gas GP (¥100M) New Segment Reporting - Segment PF business from FYE 03/27 - Figures for the period prior to FYE 03/26 have been reclassified into the new segment structure *[Energy Solution] 491 Key Points 110 119 +9 YoY FYE 03/26 (1Q/Apr.-June) FYE 03/27 (1Q/Apr.-June) () vs. FYE 03/26, and unit is in ¥100M FYE 03/27(P) [0.9]* [1.3]* [7]* YoY(2) LP Gas Business GP increased. C&I margin expanded affected by materials price. Equipment, etc. GP grew, driven by an increase in unit sales and higher gross profit per unit. FY plan revised from ¥49.5B to ¥49.1B, reflecting updated assumptions for raw material prices and temperatures. FYE 03/27 （P） Margin (¥/kg) (Residential + C&I) ¥160 Gas sales volume (’000t) Residential 179 C&I 106 # of total customers (‘000) 1,081 Hybrid water heaters (‘000 units) 8.0
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© NIPPON GAS CO.,LTD. 8 04/2026 Financial Results Briefing Materials © NIPPON GAS CO.,LTD. LP Gas Raw Material Price (CP) FYE 03/25 FYE 03/26 FYE 03/27 (JPY/US$) FYE 03/25 FYE 03/27FYE 03/26 Prev. US$750/㌧ LP Gas Raw Material Price (CP) Exchange Rate (TTS) (Average) ¥154/US$ (Average) ¥151/US$ TTS forecast: ¥160/US$ Feb. 545 (Average) US$610/t Feb. 635 Feb. 630 (Average) US$560/t (US$/t) Residential Margin ¥232/kg(A) Residential Margin ¥231/kg(A) Residential Margin ¥234/kg(P) From Aug. 2026, revised CP from US$750/t to US$650/t and maintains the exchange rate at ¥160/US$. Ensures a full-year residential margin at a level of around ¥230/kg. (US$/t) Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 2024 620 630 630 615 580 580 580 590 605 625 635 635 2025 625 635 615 615 610 600 575 520 520 495 475 495 2026 525 545 545 750 750 760 580 *Highlighted CP made up COGS through the 1Q of FYE 03/27 * CP makes up COGS after about 2-3 months *Agilely secure appropriate margins (some exclusions may apply due to the nature of the product) 0 200 400 600 800 1,000 1,200 02/24 05/24 08/24 11/24 02/25 05/25 08/25 11/25 02/26 05/26 08/26 11/26 02/27 130 135 140 145 150 155 160 165 170 Revised CP: US$650/t
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© NIPPON GAS CO.,LTD. 9 04/2026 Financial Results Briefing Materials © NIPPON GAS CO.,LTD. 26/3期1Q 27/3期1Q YoY(3) Electricity Business Key Points 10 5 Margin shrunk (-4) - Rising fuel prices triggered a negative slide impact Decrease in sales volume (-1) - The number of total customers grew, but usage/customer decreased driven by temperature -5 YoY FYE 03/26 1Q FYE 03/27 1Q +/- Margin (¥/kWh) ¥3.1 ¥1.8 -¥1.3 Sales volume (GWh) 322 292 -30 # of total customers (‘000) 389 409 +20 E&G bundled rate 23.9% 24.5％ +0.6% FYE 03/27 （P） Margin (¥/kWh) ¥3.1 Sales volume (GWh) 1,761 # of total customers (‘000) 454 E&G bundled rate 26.5% 54 FYE 03/26 (1Q/Apr.-June) FYE 03/27 (1Q/Apr.-June) () vs. FYE 03/26, and unit is in ¥100M FYE 03/27(P) GP (¥100M) GP decreased YoY due to margin shrinkage and other factors. Expects the negative slide impact will be limited in the 2H, projecting a profit margin expansion compared to the 1Q. FY plan revised from ¥5.2B to ¥5.4B, given that the 1Q margin exceeded expectations.
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© NIPPON GAS CO.,LTD. 10 04/2026 Financial Results Briefing Materials © NIPPON GAS CO.,LTD. 166 11 15 41 39 3 3 2 3 192 Key Points 46 45 Equipment, etc. (+1) - Increased in unit sales and higher gross profit per unit Gas (-2) - Residential usage/customer decreased due to high performance gas appliances, etc. - Negative slide impact -1 YoY () vs. FYE 03/26, and unit is in ¥100M FYE 03/26 1Q FYE 03/27 1Q +/- Slide time lag (¥100M) +1.4 -1.1 -2.5 Gas sales volume (’000t) Residential 33 32 -1 C&I 44 44 0 # of total customers (‘000) 594 613 +19 FYE 03/27 （P） Slide time lag (¥100M) -11 Gas sales volume (’000t) Residential 147 C&I 196 # of total customers (‘000) 629 FYE 03/26 (1Q/Apr.-June) FYE 03/27 (1Q/Apr.-June) (+1.4) (-1.1)Slide time lag FYE 03/27(P) GP (¥100M) ■ Equipment, etc. ■ Transmission revenue, etc. ■ Gas YoY(4) City Gas Business GP slightly decreased YoY. While residential sales volume declined, the number of customers is steadily increasing(+19K YoY). FY plan revised from ¥19.1B to ¥19.2B, given that factors such as the growth in the 1Q Equipment, etc. GP . Updated assumptions for raw material prices and temperatures.
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© NIPPON GAS CO.,LTD. 11 04/2026 Financial Results Briefing Materials © NIPPON GAS CO.,LTD. Impact from Raw Material Cost Adjustment (Slide Time Lag) FYE 03/24 FYE 03/25 +3.1 0 FYE 03/26 +1.2 FYE 03/27 -11(F) 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0 02/23 08/23 02/24 08/24 02/25 08/25 02/26 08/26 ～～ +7.1 1H -4.0 2H 1H +1.1 2H -1.1 -0.7 1H 2H +1.9 +1.4 1Q 1Q -1.1(A) Upward phase Negative impact Downward phase Positive impact Raw material price Impact on profit Anticipating the impact from rising energy prices due to the Mideast tensions Trends of LNG CIF* price *CIF: Average price of LNG imported to Japan (JPY ‘000/t) (¥100M) Slide time lag impact in the 1Q (Apr.-June) was -¥0.11B. The rise in raw material prices has been more modest than projected. The full-year slide time lag remains unchanged at -¥1.1B. Assuming a continued rise in energy prices resulting from the escalating tensions in the Mideast.
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© NIPPON GAS CO.,LTD. 12 04/2026 Financial Results Briefing Materials © NIPPON GAS CO.,LTD. Integrated Energy PF (-0.5) - On par with the previous period 0.4 2.6 3.7 3.2 5.8 12.3 Construction PF, PF apps (+2.2) - Construction PF grew. A major deal was recorded in the 1Q. Reflects the 1Q upside in the FY YoY(5) Platform Business (PF) Key Points 4.1 5.8 +1.7 YoY () vs. FYE 03/26, and unit is in ¥100M FYE 03/26 (１Q/Apr.-June) FYE 03/27 (１Q/Apr.-June) GP (¥100M) ■ Integrated Energy PF (New City Gas PF, Safety Inspection PF, LPG Network Service) ■ Construction PF, PF apps FYE 03/27(P) 18 GP increased. Construction PF grew. FY plan revised from ¥1.7B to ¥1.8B, taking into account of the 1Q results. Demand for Construction PF and Safety Inspection PF is projected to increase due to severe labor shortage.
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© NIPPON GAS CO.,LTD. 13 04/2026 Financial Results Briefing Materials © NIPPON GAS CO.,LTD. Capital Strategy(1) ROIC and ROE （FYE 03/27 - 03/29) FYE 03/26FYE 03/25FYE 03/24FYE 03/23 ROE Maintaining the optimal capital structure + business expansionCapital efficiency optimization around 22% around 13% Net Income FYE 03/29 For details on NICIGAS’ capital policy, please refer to NICIGAS' Capital Strategy to be released on 30th July. Link： https://www.nichigas.co.jp/en/ir/library/capital Cost of Shareholders’ Equity (¥100M) Enhances ROE in accordance with steady profit growth through organic growth under an optimal capital structure Enhances corporate value by maintaining high capital efficiency and steady profit growth. Placing strong emphasis on maximizing Economic value added (EP) as set forth in the “Growth Investment Guidance,” will increase growth investments that exceed the capital cost. CAPM base Market-Level expectations ROIC 106 108 115 148 175 9% 11% 11% 13% 14% 15% 17% 22% 0% 5% 10% 15% 20% 25% 30% 23/3期 24/3期 25/3期 26/3期 29/3期FYE 03/23 FYE 03/24 FYE 03/25 FYE 03/26 FYE 03/29
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© NIPPON GAS CO.,LTD. 14 04/2026 Financial Results Briefing Materials © NIPPON GAS CO.,LTD. 461 500 675 FYE 03/23(A) FYE 03/26(A) 1,549 1,636Total assets Other liabilities Net assets FYE 03/29(P) 106 14% 9% 148 22% 13% 175 41% Prioritizes debt financing for large-scale M&A Policy to maintain the optimal level at around 40% Overview of the Equity Ratio 400 406 743 40% around Equity ratio 48% * Mainly valuation difference on available-for-sale securities, etc. (Excluding Accumulated Other Comprehensive Income* : 40%) (¥100M) Net Income (¥100M) ROE ROIC Interest- bearing debt around 22% around 13% RepublishCapital Strategy(2) Balance Sheet (B/S) Control Optimal Equity Ratio Maintains a policy of not holding unnecessary shareholders’ equity, keeping NICIGAS’ equity ratio at 40% without significantly expanding its assets.
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© NIPPON GAS CO.,LTD. 15 04/2026 Financial Results Briefing Materials © NIPPON GAS CO.,LTD. 23 (16) 7 196 234 279 282 (76) (92) (88) (72) 120 142 191 210 CF from finance (161) (87) (140)(184) Breakdown of CF from investment (¥100M) FYE 03/23 FYE 03/24 FYE 03/25 FYE 03/26 FYE 03/26 1Q FYE 03/27 1Q FYE 03/27(P) LPG 16 25 24 22 3 4 48 (37) [Incl. LPG M&A] [3] [5] [11] [5] [1] [2] [25] [(7)] ICT 29 30 21 12 4 2 12 (17) City Gas 33 41 45 44 11 12 45 (52) Others (2)* (5)* (2)* (6)* 0 (2) - - FYE 03/23 FYE 03/24 FYE 03/25 (167) FYE 03/26 FYE 03/27(P)FYE 03/27 1Q (63)(64) FYE 03/26 1Q FCF Capital Strategy(3) Cash Flow (CF) CF from operating activities CF from investment (¥100M) FCF 245 (105) 140 (Investment in securities, etc.) (* is positive effect on CF) (D&A) ✓LPG: Will increase M&A investment as required ✓ICT: Shifts to operating phase from FYE 03/25, gradually decreasing new investment CF from operating activies for the 1Q increased YoY. Progress for investment was in line with the previous period. Will proactively allocate funds to growth investments, including LP Gas acquisitions, to drive the enhancement of medium- to long-term corporate value. 21 (18) 3
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© NIPPON GAS CO.,LTD. 16 04/2026 Financial Results Briefing Materials © NIPPON GAS CO.,LTD. Capital Strategy(4) Shareholder Return Dividend/share Dividend (based on board resolution) 75.0¥ 92.5¥ 103.0¥ 110.0¥ (¥100M) Increase gradually▶ ▶ ▶ ▶ ▶ ▶ Share buyback 5.9B¥ 6.0B¥ 6.7B¥ Will flexibly implement while maintaining a policy of an equity ratio of 40% ▶ ▶ ▶ 108 115 148 140 175 Total Dividend: ¥30.0B in 3 years Total Dividend: over¥36.0B(P) in 3 years 85 102 113 117 ▶ ▶ ▶ FYE 03/24 FYE 03/29(P)FYE 03/28(P)FYE 03/27(P)FYE 03/25 FYE 03/26 Net Income Including Share buyback for Capital optimization Republish Enhancing shareholder return, focusing on dividend, under a policy of not holding unnecessary shareholders’ equity. NICIGAS achieves sustainable high dividends as follows: 1) substantial room for customer base expansion with minimal Capex, 2) generating stable Cash Flow.
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© NIPPON GAS CO.,LTD. 17 04/2026 Financial Results Briefing Materials © NIPPON GAS CO.,LTD. FYE 03/26(A) FYE 03/27(F) Forecasts lower temperature than FYE 03/26 May(A) Apr.(A) June(A) FYE 03/27(F) (as at 30th Apr.) Forecasts higher temperature than FYE 03/26Normal temperature →Higher-than-normal temperatures Reference Material(1) Average Temperature 1Q(A) (Apr.-June) 2Q(F) (July-Sept.) 3Q(F) (Oct.-Dec.) 4Q(F) (Jan.-Mar.) Slightly warmer than expected At the same level with FYE 03/26 Lower than vs. FYE 03/26 Higher than vs. FYE 03/26 (*1): (A) is actual average temperature in Tokyo (Source: Japan meteorological agency) Forecasts from July to Jan, based on information provided by weather specialized agency Forecasts temperature from Feb. to Mar. flat YoY Average temperature (℃） 0.0 10.0 20.0 30.0 4月 5月 6月 7月 8月 9月 10月 11月 12月 1月 2月 3月Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.Apr. May June July The 1Q FYE 03/27 was slightly warmer than anticipated. The July - Sept. temperatures forecast remains largely unchanged from the initial plan and are expected to be lower than the previous period. Revised the temperature forecasts from Oct. - Jan. upward.
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© NIPPON GAS CO.,LTD. 18 04/2026 Financial Results Briefing Materials © NIPPON GAS CO.,LTD. Gross Profit(GP)*1(¥100M) FYE 03/23 FYE 03/24 FYE 03/25 FYE 03/26 (A) FYE 03/27 (Initial P) FYE 03/27 (Latest P) Key Points of Latest Plan for FYE 03/27 FYE 03/29 (P) LP Gas (incl. Equipment, etc.) 453 483 483 486 495 491 520 # of total customers (‘000) 973 997 1,030 1,051 1,081 1,081 1,141 Gas sales volume (‘000t) Residential/C&I 186/121 179/114 178/109 181/106 181/106 179/106 ₋ Revised temperature assumptions upward 188/115 Usage/customer 226 215 208 206 200 198 197 Residential margin (¥/kg) 212 233 232 231 232 234 ₋ Cost projection from Aug. 2026 onward based on the assumptions of CP of US$650/t, exchange rate of ¥160/US$ 232 Hybrid water heaters cumulative sales (‘000 units) 2 4 9 16 24 24 40 City Gas (incl. Equipment, etc.) 203 205 196 200 191 192 208 # of total customers (‘000) 667*2 601 590 609 629 629 669 Gas sales volume (‘000t) Total of Residential and C&I 378 365 344 338 349 343 ₋ Revised temperature assumptions upward 359 Slide time lag (¥100M) -3.1 +3.1 0 +1.2 -11 -11 ₋ Assumes a rise in raw material prices 0 Electricity 30 37 52 66 52 54 71 # of total customers (‘000) 320 345 381 404 454 454 554 E&G bundled rate (%) 19.5 21.6 23.5 24.3 26.5 26.5 30.1 Sales volume (GWh) 1,297 1,427 1,587 1,723 1,787 1,765 ₋ Reviewed based on the 1Q results 2,166 Margin (¥/kWh) 2.3 2.6 3.3 3.8 2.9 3.1 ₋ Reviewed based on the 1Q results 3.3 Platform 11 11 14 16 17 18 21 Reference Material(2) Key Financial Data by Segment *1: Disclosed after reclassifying into new segment *2: As of Jan 2024, due to the legal separation of pipeline division in group restructuring, the disclosure method for city g as customer numbers will be changed to the number of retail contracts currently being supplied
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© NIPPON GAS CO.,LTD. 19 04/2026 Financial Results Briefing Materials © NIPPON GAS CO.,LTD. LP Gas Electricity City Gas - Supplier: Oil wholesaler/ trading company ⇒Diversified procurement from about 10 suppliers - Supplier: Tokyo Electric Power Company (TEPCO) Group ⇒Stable procurement through 100% bilateral contract based on long-term contract - Supplier: Tokyo Electric Power Company (TEPCO) Group, etc. ⇒Stable procurement through long-term contract - Responding with fuel cost adjustment, resulting in a time lag impact - Short-term impact on profit, Minimal impact on profit in long-term - Responding with raw material cost adjustment system, resulting in a time lag impact - Short-term impact on profit, Minimal impact on profit in long-term NICIGAS’ procurement - Residential: Minimal impact on profit due to price adjustment - C&I: Retail price is linked to raw material price, resulting in a time lag impact - Contract Price (CP), Mont Belvieu price (MB), Exchange rate - CIF price (LNG, crude oil, coal), Exchange rate - CIF price (LNG), Exchange rate Raw Materials Price Index Raw Materials Price Index Raw Materials Price Index Slide time lag (C&I) Slide time lag Slide time lag Upward phase Positive impact Raw material price NICIGAS’ procurement NICIGAS’ procurement Impact of raw material price fluctuations on profit Downward phase Negative impact Impact on Profit Upward phase Negative impact Raw material price Downward phase Positive impact Impact on Profit Upward phase Negative impact Raw material price Downward phase Positive impact Impact on Profit Impact of raw material price fluctuations on profit Impact of raw material price fluctuations on profit Reference Material(3) Current Situation of Raw Material Procurement Republish Ensures long-term stable procurement while minimizing the risk from cost fluctuations. Proactively manages the impact of raw material price fluctuations on profit through agile actions.