Notice of Posting Extraordinary Loss and Revision to Results Forecast[PDF : 234KB]

April 23, 2020

Company name: Tokyo Gas Co., Ltd. Name of representative: Takashi Uchida, President

(Securities code: 9531,)

Contact: Ohno Akira,

Financial Management Dept. Managerial Accounting Chief Manager

Notice of Posting Extraordinary Loss and Revision to Results Forecast

Tokyo Gas Co., Ltd. (the "Company") is announcing revisions to its results forecast released on January 30, 2020 following the expected posting of extraordinary loss, as detailed below.

Details

1. Posting of Extraordinary Loss

The Company expects to incur the following impairment losses as a result of a re-evaluation of the upstream projects it carries out in the United States, etc., in view of the decline in crude oil and natural gas prices on the back of the current drop in demand for crude oil:

1. Approximately ¥12.1 billion on the tight-sand shale gas development business in east Texas, U.S. in which the Company participates through Castleton Resources LLC which Tokyo Gas America Ltd., a wholly owned subsidiary of the Company, invests in (Tokyo Gas Group's stake: 46%);
2. Approximately ¥5.9 billion on the shale gas development business in the Barnett basin in Texas, U.S. in which Tokyo Gas America Ltd. participates through its wholly owned subsidiary TG Barnett. Resources LP; and
3. Approximately ¥10.4 billion on the Ichthys LNG project offshore Western Australia in which the Company participates through its wholly owned subsidiary Tokyo Gas Australia Pty Ltd.

As a result, the Company plans to add an impairment loss of approximately ¥28.4 billion on its overseas business in extraordinary losses in its consolidated results for the year ended March 2020.

• Please refer to the following press releases for information regarding each project: "Investment in Natural Gas Development Project in East Texas, U.S.A." dated May 8, 2017, "Participation in the shale gas development joint venture in US Barnett basin" dated March 29, 2013, and "Participation in the Ichthys LNG Project" dated January 12, 2012.

2. Regarding Revisions to Forecast Results

1. Revision to Consolidated Forecast Results for the Year Ended March 2020 (April 1, 2019 - March 31, 2020)

				(Unit: million yen)
				Profit		Profit
		Operating	Ordinary	attributable
	Net sales		per share
	Profit	Profit	to owners of
			(yen)
				parent
Previous forecast (A)	1,974,000	113,000	114,000	77,000	174.06
Revised forecast (B)	1,925,000	101,000	102,000	43,000	97.20
Change (B-A)	-49,000	-12,000	-12,000	-34,000
Rate of change (%)	-2.5	-10.6	-10.5	-44.2
(Ref.) Results of
previous year (ended	1,962,308	93,704	89,386	84,555	187.60
March 2019)

1. Revision to Non-Consolidated Forecast Results for the Year Ended March 2020 (April 1, 2019 - March 31, 2020)

				(Unit: million yen)
		Operating	Ordinary			Profit
	Net sales	Profit		per share
	Profit	Profit
				(yen)
Previous forecast (A)	1,809,000	70,000	79,000	61,000	137.89
Revised forecast (B)	1,787,000	62,000	68,000	56,000	126.59
Change (B-A)	-22,000	-8,000	-11,000	-5,000
Rate of change (%)	-1.2	-11.4	-13.9	-8.2
(Ref.) Results of
previous year (ended	1,768,567	48,920	62,910	53,717	119.18
March 2019)

1. Reasons for the Revision

As a result of the revision to the forecast for the year ended March 2020 in view of the expected posting of extraordinary loss as described in 1 above and other recent performance developments such as a decrease in residential gas sales volume owing to higher winter temperatures than usual, net sales, operating profit, ordinary profit, and profit are projected to fall short of the previous forecast both on a consolidated and non-consolidated basis.

• Please note that the above forecasts are based on information available as of the date of this announcement and that the actual performance may differ from the projections due to various factors.