Interim report
Page 1
Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepan cy between this translated document and the Japanese original, the original shall prevail. Consolidated Financial Results for the Three Months Ended June 30, 2026 (Under Japanese GAAP) July 30, 2026 Company name: TOKYO GAS CO.,LTD. Listing: Tokyo Stock Exchange, Nagoya Stock Exchange Securities code: 9531 URL: https://www.tokyo-gas.co.jp/ Representative: Mr. SASAYAMA Shinichi Corporate Executive Officer, President and CEO Inquiries: Mr. ITO Kazuaki Chief Manager, Consolidated Settlements Sect. Telephone: +81-3-5400-7736 Scheduled date to commence dividend payments: - Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes (for institutional investors) (Notes) 1. Yen amounts are rounded down to millions. (Notes) 2. Numbers and percentages increase (decrease) from the corresponding period in the prior fiscal year. 1. Consolidated financial results for the three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026) (1) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Three months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30, 2026 673,436 4.0 55,412 (11.4) 49,561 (13.3) 35,569 (65.0) June 30, 2025 647,341 10.3 62,523 141.4 57,137 122.3 101,727 438.7 (Note) Comprehensive income: For the three months ended June 30, 2026: ¥ 51,908 million [ - %] For the three months ended June 30, 2025: ¥ (65,919) million [ - %] Basic earnings per share Diluted earnings per share Three months ended Yen Yen June 30, 2026 107.15 - June 30, 2025 282.35 - (2) Consolidated financial position Total assets Net assets Equity-to-asset ratio As of Millions of yen Millions of yen % June 30, 2026 3,868,733 1,778,289 44.6 March 31, 2026 3,892,268 1,796,567 44.1 (Reference) Equity: As of June 30, 2026: ¥ 1,726,279 million As of March 31, 2026: ¥ 1,717,472 million
Page 2
2. Dividends Annual dividends per share 1st quarter-end 2nd quarter-end 3rd quarter-end Year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 - 50.00 - 60.00 110.00 Fiscal year ending March 31, 2027 - Fiscal year ending March 31, 2027 (Forecasts) 60.00 - 60.00 120.00 (Note) Revisions to the forecasts of cash dividends most recently announced: None 3. Consolidated financial result forecasts for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 2,947,000 4.0 186,000 (5.9) 173,000 (10.7) 137,000 (39.6) 418.28 (Note) Revisions to the financial result forecasts most recently announced: None * Notes (1) Significant changes in the scope of consolidation during the period: Yes Newly included: - Excluded: 2 Companies ( Gunmaannaka solar power LLC, Tokyo Gas Lease Co.,Ltd. ) (2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: 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 specific to quarterly consolidated financial statement preparation)” for details. (3) Changes in accounting policies, changes in accounting estimates, and restatement 1) Changes in accounting policies due to revisions to accounting standards and other regulations: None 2) Changes in accounting policies due to other reasons: None 3) Changes in accounting estimates: None 4) Restatement: None (4) Number of issued shares (common shares) 1) Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026: 334,959,259 shares As of March 31, 2026: 371,090,859 shares 2) Number of treasury shares at the end of the period As of June 30, 2026: 4,478,953 shares As of March 31, 2026: 37,670,958 shares 3) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026: 331,961,323 shares Three months ended June 30, 2025: 360,285,342 shares * Review of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None * Proper use of earnings forecasts, and other special matters 1. Earnings forecasts are based on information available as of the date of this release and are not intended as a promise by the Company to achie ve them. Actual results may differ from the forecasts due to various factors in the future. For details on earnings forecasts, please see “1. Overview of Business Performance, etc. (2) Future outlook” on page 4 of the Attachment. 2. The supplementary information related to this Financial Results will be posted on the website of the Company.
Page 3
1 Contents of Attachment 1. Overview of Business Performance, etc. ............................................................................................................................ 2 (1) Overview of business performance for the three months ended June 30, 2026 ..................................................... 2 (2) Future outlook ............................................................................................................................................................. 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 (Consolidated statement of comprehensive income) ................................................................................................ 8 (3) Notes on consolidated financial statements ............................................................................................................... 9 (Note on going concerns’ premise) ............................................................................................................................. 9 (Significant changes in shareholders’ equity) ............................................................................................................ 9 (Application of accounting treatment specific to quarterly consolidated financial statement preparation) ....... 9 (Notes to segment information) ................................................................................................................................ 10 (Notes to statements of cash flows) ........................................................................................................................... 11
Page 4
2 1. Overview of Business Performance, etc. (1) Overview of business performance for the three months ended June 30, 2026 (1) Business performance The Group’s net sales for the three months ended June 30, 2026 increased by ¥26,095 million (4.0%) year on year to ¥673,436 million, mainly due to an increase in sales in the North American shale gas business despite a decrease in gas and electric power sales volume. Operating expenses increased by ¥33,206 million (5.7%) year on year to ¥618,023 million , mainly due to an increase in the cost of sales resulting from factors such as rising crude oil prices. Consequently, operating profit decreased by ¥7,111 million (11.4%) year on year to ¥55,412 million, and ordinary profit decreased by ¥7,576 million (13.3%) to ¥49,561 million. Profit attributable to owners of parent , after recording of income taxes, decreased by ¥66,158 million (65.0%) to ¥35,569 million reflecting the decrease in extraordinary income, mainly resulting from the absence of gain on reversal of foreign currency translation adjustments recorded in the corresponding period. Segment earnings were as follows. 1) Energy solution In terms of city gas, sales volume to residential customers decreased 10.6% year on year to 550 million m 3, mainly due to a decrease in demand resulting from high er temperatures in early spring. Sales volume to commercial and industrial customers rose 2.2% to 1,545 million m 3, mainly as a result of an increase in the volume of sales to power generation customers, and supply to other utilities increased 1.4% to 358 million m3. Total sales volume decreased 1.1% to 2,453 million m3. In terms of electric power, sales volume decreased 1.5% year on year to 3,099 million kWh, mainly due to lower sales volume caused by temperature-related factors. Sales volume to wholesale and other customers decreased 14.0% to 2,395 million kWh, mainly as a result of lower demand from wholesale customers. Total sales volume decreased 7.4% to 5,494 million kWh. Sales increased by ¥4,891 million (0.9%) year on year to ¥571,775 million, mainly due to higher sales in the Solution business. Operating expenses increased by ¥33,411 million (6.5%) year on year to ¥545,082 million, and the share of profit of entities accounted for using equity method decreased by ¥4 million (1.3%) to ¥285 million . Consequently, segment profit decreased by ¥28,524 million (51.4%) to ¥26,979 million. <Consolidated City Gas Sales Volume, etc.> Apr.–Jun. 2026 Apr.– Jun. 2025 Change % change No. of customers for city gas retail sales Thousands 8,901 8,859 42 0.5 No. of customers (meters) Thousands 12,715 12,587 128 1.0 City gas sales volume Residential Mil. m3 550 615 (65) (10.6) Commercial Mil. m3 460 467 (7) (1.7) Industrial Mil. m3 1,085 1,044 41 3.9 Subtotal Mil. m3 1,545 1,511 34 2.2 Supplies to other utilities Mil. m3 358 353 5 1.4 Total Mil. m3 2,453 2,480 (27) (1.1) Average temperature °C 19.5 19.7 (0.2) — (Notes) 1. No. of customers for city gas retail sales indicates the number of billed customers for city gas retail sales. 2. No. of customers (meters) indicates the number of meters as a gas pipeline operator. 3. “Commercial” indicates sales to commercial, public and medical institutions. 4. City gas sales volume is on the basis of 45MJ/m3.
Page 5
3 < Consolidated Electric Power Sales Volume, etc.> Apr.– Jun. 2026 Apr.– Jun. 2025 Change % change No. of customers for electric power retail sales Thousands 4,379 4,229 150 3.5 Electric power sales volume Retail million kWh 3,099 3,146 (47) (1.5) Wholesale etc. million kWh 2,395 2,786 (391) (14.0) Total million kWh 5,494 5,932 (438) (7.4) (Note) No. of customers for electric power retail sales indicates the number of billed customers for electric power retail sales. <Foreign Exchange Rates and Crude Oil Prices> ¥/$ rates Apr.– Jun. 2026 Apr.– Jun. 2025 Change Crude oil prices ($/bbl) Apr.– Jun. 2026 Apr.– Jun. 2025 Change 159.57 144.60 14.97 112.71 75.19 37.52 2) Network Sales decreased by ¥1,094 million (1.4%) year on year to ¥79,103 million. Consequently, segment profit also decreased by ¥1,045 million (71.1%) to ¥425 million. 3) Overseas Sales increased by ¥17,169 million (29.7%) year on year to ¥75,008 million. The share of profit of entities accounted for using equity method was ¥1,217 million, an improvement of ¥2,215 million from the share of loss of ¥998 million in the corresponding period. Consequently, segment profit increased by ¥22,108 million (185.2%) year on year to ¥34,046 million. 4) Urban development business Sales increased by ¥3,104 million (21.4%) year on year to ¥17,610 million. The share of loss of entities accounted for using equity method was ¥93 million, a deterioration of ¥24 million. Consequently, segment profit increased by ¥1,160 million (32.9%) year on year to ¥4,688 million. (2) Financial position Total assets at the end of the three months ended June 30, 2026 decreased by ¥23,535 million from the end of the prior fiscal year to ¥3,868,733 million. This was mainly due to a decrease in notes and accounts receivable - trade, and contract assets owing to seasonal factors. Liabilities decreased by ¥5,256 million to ¥2,090,444 million, mainly due to a decrease in income taxes payable and a decrease in other current liabilities resulting from a decrease in accounts payable - other. Net assets decreased by ¥18,278 million to ¥1,778,289 million. This was mainly due to a decrease in retained earnings resulting from dividends of surplus. As a result of a decrease in total assets and an increase in equity capital (the sum of shareholders’ equity and accumulated other comprehensive income), the equity -to-asset ratio increased by 0.5 percentage points to 44.6% compared to the end of the prior fiscal year.
Page 6
4 (2) Future outlook The current outlook of the business environment and earnings are as follows. a. Consolidated city gas sales volume forecasts for FY2026 FY2026 (Forecasts) FY2025 (Results) Change % change City gas sales volume Residential Mil. m3 2,704 2,719 (15) (0.6) Others Mil. m3 8,086 8,456 (370) (4.4) Total Mil. m3 10,790 11,175 (385) (3.4) Average temperature °C 16.9 17.4 (0.5) — (Note) City gas sales volume is on the basis of 45MJ/m3. b. Consolidated electric power sales volume forecasts for FY2026 FY2026 (Forecasts) FY2025 (Results) Change % change Total electric power sales volume million kWh 28,490 28,021 469 1.7 c. Consolidated earnings forecasts for FY2026 Net sales Operating profit Ordinary profit Profit attributable to owners of parent FY2026 (forecasts) ¥ hundred million 29,470 1,860 1,730 1,370 FY2025 (results) ¥ hundred million 28,347 1,976 1,937 2,268 Change ¥ hundred million 1,123 (116) (207) (898) Change % 4.0 (5.9) (10.7) (39.6) < Foreign exchange rates and crude oil prices forecasts for FY2026> ¥/$ rates FY2026 (Forecasts) FY2025 (Results) Change Crude oil prices ($/bbl) FY2026 (Forecasts) FY2025 (Results) Change 156.14 150.67 5.47 86.68 71.41 15.27
Page 7
5 2. Consolidated Financial Statements and Main Notes (1) Consolidated balance sheets (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 187,102 251,956 Notes and accounts receivable - trade, and contract assets 424,098 346,595 Lease receivables and investments in leases 18,362 653 Merchandise and finished goods 38,008 43,789 Work in process 28,467 27,733 Raw materials and supplies 91,751 113,591 Other current assets 248,348 238,168 Allowance for doubtful accounts (1,349) (1,177) Total current assets 1,034,789 1,021,312 Non-current assets Property, plant and equipment Buildings and structures, net 329,119 322,429 Machinery, equipment and vehicles, net 824,678 792,370 Tools, furniture and fixtures, net 14,813 14,102 Land 180,531 179,991 Leased assets, net 4,625 10,910 Construction in progress 69,150 77,117 Total property, plant and equipment 1,422,919 1,396,921 Intangible assets Goodwill 5,163 4,309 Mining rights 615,444 643,074 Other intangible assets 119,684 103,988 Total intangible assets 740,292 751,373 Investments and other assets Investment securities 429,702 432,715 Long-term loans receivable 36,971 37,116 Retirement benefit assets 53,476 53,666 Deferred tax assets 12,048 12,615 Other investments 168,239 169,291 Allowance for doubtful accounts (6,173) (6,279) Total investments and other assets 694,266 699,127 Total non-current assets 2,857,478 2,847,421 Total assets 3,892,268 3,868,733
Page 8
6 (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 105,153 126,695 Short-term borrowings 10,244 7,532 Current portion of bonds payable 10,017 29,999 Current portion of long-term borrowings 53,933 39,311 Income taxes payable 51,975 18,661 Other current liabilities 471,901 417,268 Total current liabilities 703,225 639,469 Non-current liabilities Bonds payable 641,062 670,172 Long-term borrowings 494,413 500,227 Deferred tax liabilities 82,007 89,286 Retirement benefit liabilities 51,672 50,486 Provision for share awards for directors (and other officers) 497 562 Provision for gas holder repairs 3,162 3,254 Provision for safety measures 191 168 Provision for contract loss in regards to appliance warranties 1,136 992 Provision for point service program 387 362 Asset retirement obligations 28,053 28,794 Other non-current liabilities 89,889 106,669 Total non-current liabilities 1,392,475 1,450,975 Total liabilities 2,095,700 2,090,444 Net assets Shareholders' equity Share capital 141,844 141,844 Capital surplus 4,130 3,487 Retained earnings 1,455,063 1,273,455 Treasury shares (204,626) (26,512) Total shareholders' equity 1,396,411 1,392,274 Accumulated other comprehensive income Valuation difference on available-for-sale securities 109,876 106,490 Deferred gains or losses on hedges 51,960 56,218 Foreign currency translation adjustments 143,024 158,962 Remeasurements of defined benefit plans 16,200 12,334 Total accumulated other comprehensive income 321,061 334,005 Non-controlling interests 79,095 52,009 Total net assets 1,796,567 1,778,289 Total liabilities and net assets 3,892,268 3,868,733
Page 9
7 (2) Consolidated statements of income and comprehensive income (Consolidated statement of income) (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Net sales 647,341 673,436 Cost of sales 514,789 545,081 Gross profit 132,552 128,355 Selling, general and administrative expenses 70,028 72,942 Operating profit 62,523 55,412 Non-operating income Interest income 1,198 1,561 Dividend income 936 1,147 Share of profit of entities accounted for using equity method － 1,409 Gain on derivatives 2,367 3,479 Miscellaneous income 2,953 2,602 Total non-operating income 7,456 10,200 Non-operating expenses Interest expenses 6,772 4,267 Share of loss of entities accounted for using equity method 778 － Loss on derivatives 2,881 7,867 Miscellaneous expenses 2,411 3,917 Total non-operating expenses 12,842 16,052 Ordinary profit 57,137 49,561 Extraordinary income Gain on sales of non-current assets 4,285 2,292 Gain on sales of investment securities 2,561 6,047 Gain on reversal of foreign currency translation adjustments 68,013 － Total extraordinary income 74,860 8,340 Profit before income taxes 131,997 57,901 Income taxes 30,604 20,822 Profit 101,393 37,079 Profit (loss) attributable to non-controlling interests (333) 1,509 Profit attributable to owners of parent 101,727 35,569
Page 10
8 (Consolidated statement of comprehensive income) (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Profit 101,393 37,079 Other comprehensive income Valuation difference on available-for-sale securities (2,699) (3,411) Deferred gains or losses on hedges (47,727) 4,944 Foreign currency translation adjustments (109,193) 15,894 Remeasurements of defined benefit plans, net of tax (2,972) (3,865) Share of other comprehensive income of entities accounted for using equity method (4,719) 1,266 Total other comprehensive income (167,312) 14,829 Comprehensive income (65,919) 51,908 Comprehensive income attributable to Owners of parent (58,871) 48,513 Non-controlling interests (7,048) 3,395
Page 11
9 (3) Notes on consolidated financial statements (Note on going concerns’ premise) Not applicable (Significant changes in shareholders’ equity) I Three months ended June 30, 2025 Purchase of treasury stock At its Board of Directors meeting held on March 26, 2025, the Company resolved to purchase treasury shares pursuant to Article 156 of the Companies Act as applied mutatis mutandis to Article 165, paragraph (3) of the Act. The Company is carrying out the acquisition of treasury shares during the period from April 1, 2025, to September 30, 2025, up to a maximum of 35,000,000 shares and a total amount of ¥120,000 million. Treasury shares were purchased as follows during the three months ended June 30, 2025: (1) Purchase period April 1 – June 30 , 2025 (execution basis) (2) Number of shares purchased 13,257,600 shares (3) Total value of purchase ¥62,685,506,300 (4) Purchase method Market purchase on the Tokyo Stock Exchange Retirement of Treasury Stock At its Board of Directors meeting held on April 28, 2025, the Company resolved to retire treasury shares pursuant to Article 178 of the Companies Act. Treasury shares were retired as follows: (1) Type of shares retired The Company’s common stock (2) Number of shared retired 17,803,000 shares (3) Date of retirement May 23, 2025 II Three months ended June 30, 2026 Purchase of treasury stock At its Board of Directors meeting held on April 28, 2026, the Company resolved to purchase treasury shares pursuant to Article 156 of the Companies Act as applied mutatis mutandis to Article 165, paragraph (3) of the Act. The Company is carrying out the acquisition of treasury shares during the period from May 7, 2026, to September 30, 2026, up to a maximum of 12,000,000 shares and a total amount of ¥50,000 million. Treasury shares were purchased as follows during the three months ended June 30, 2026: (1) Purchase period May 7 – June 30 , 2026 (execution basis) (2) Number of shares purchased 2,946,700 shares (3) Total value of purchase ¥18,879,993,800 (4) Purchase method Market purchase on the Tokyo Stock Exchange Retirement of Treasury Stock At its Board of Directors meeting held on March 25, 2026, the Company resolved to retire treasury shares pursuant to Article 178 of the Companies Act and implemented the retirement as follows. (1) Type of shares retired The Company’s common stock (2) Number of shared retired 36,131,600 shares (3) Date of retirement April 24, 2026 (Application of accounting treatment specific to quarterly consolidated financial statement preparation) Calculation of tax expenses Tax expenses are calculated by making a reasonable estimate of the effective tax rate after applying tax effect accounting to profit before income taxes for the consolidated fiscal year that includes the first-quarter period and multiplying the quarterly profit before income taxes by the estimated effective tax rate. However, in cases where the calculation of tax expenses using the estimated effective tax rate results in a significant lack of rationality, tax expenses are calculated using the statutory effective tax rate.
Page 12
10 (Notes to segment information) [Segment Information] I Three months ended June 30, 2025 1 Net sales and profit or loss by reporting segment (Millions of yen) Reporting segment Total Adjustments (Note 1) Amount recorded on quarterly consolidated statement of income (Note 2) Energy solution Network Overseas Urban development Net sales External sales 557,889 23,963 57,764 7,724 647,341 — 647,341 Intersegment sales & transfers 8,995 56,233 75 6,781 72,085 (72,085) — Total 566,884 80,197 57,839 14,506 719,427 (72,085) 647,341 Segment profit (loss) Operating profit (loss) 55,213 1,470 12,936 3,597 73,218 (10,694) 62,523 Share of profit (loss) of entities accounted for using equity method 289 — (998) (69) (778) — (778) Total 55,503 1,470 11,938 3,528 72,440 (10,694) 61,745 (Notes) 1. The ¥(10,694) million adjustments to segment profit/loss include ¥(785) million for the elimination of intersegment transactions and ¥(9,908) million for companywide expenses not allocated to the respective reporting segments. Companywide expenses consist primarily of general and administrative expenses not attributable to the reporting segments. 2. Segment profit or loss is adjusted from operating profit or loss on the quarterly consolidated financial statement of income, which is added or deducted by share of profit or loss of entities accounted for using equity method.
Page 13
11 II Three months ended June 30, 2026 1 Net sales and profit or loss by reporting segment (Millions of yen) Reporting segment Total Adjustments (Note 1) Amount recorded on quarterly consolidated statement of income (Note 2) Energy solution Network Overseas Urban development Net sales External sales 562,796 24,817 74,894 10,927 673,436 — 673,436 Intersegment sales & transfers 8,979 54,285 113 6,683 70,062 (70,062) — Total 571,775 79,103 75,008 17,610 743,498 (70,062) 673,436 Segment profit (loss) Operating profit (loss) 26,693 425 32,829 4,781 64,729 (9,316) 55,412 Share of profit (loss) of entities accounted for using equity method 285 — 1,217 (93) 1,409 — 1,409 Total 26,979 425 34,046 4,688 66,139 (9,316) 56,822 (Notes) 1. The ¥(9,316) million adjustments to segment profit/loss include ¥(84) million for the elimination of intersegment transactions and ¥(9,232) million for companywide expenses not allocated to the respective reporting segments. Companywide expenses consist primarily of general and administrative expenses not attributable to the reporting segments. 2. Segment profit or loss is adjusted from operating profit or loss on the quarterly consolidated financial statement of income, which is added or deducted by share of profit or loss of entities accounted for using equity method. (Notes to statements of cash flows) Quarterly consolidated statements of cash flows pertaining to the three months ended June 30, 2026, have not been prepared. Depreciation (including amortization related to intangible assets excluding goodwill) pertaining to the three months is as follows: (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Depreciation 67,695 63,899