スライド 1...1 Summary P.2 2 Financial Results (FYE 03/18) Summary P.3 LP Gas Business P.4...

April 26, 2018 Nippon Gas Co., Ltd.

(“NICIGAS”)

Financial Results Briefing Material for FY Ending in Mar. 2018 (FYE 03/18)

4Q

1 Summary P.2

2 Financial Results (FYE 03/18)

Summary P.3

LP Gas Business P.4

Existing City Gas Business P.5

New City Gas Business P.6

3 Progress of Three-Year Plan P.7

4 Return to Shareholders P.11

5 Overseas Business P.12

6 Corporate Governance P.13

7 Financial Highlights P.14

8 Appendix P.17

1

Contents

Both Operating Income and Net Income for FYE 03/18 exceeded the plan. The number of New City Gas application exceeded the plan of 110,000.

2

Reduced cross-shareholdings stocks held by financial institutions. Multiple financial institutions sold 2,201,000 NICIGAS’ stocks (of which, 1,460,000 stocks were purchased by TEPCO Energy Partner, Incorporated (“TEPCO EP”), and 741,000 stocks were sold in stock market). Improvement in NICIGAS stock’s liquidity is expected.

1. Summary Both Operating Income and Net Income Exceeded the Target. Focusing on Reducing Cross-shareholdings Stocks.

FYE 03/18 (P) FYE 03/18 (A) FYE 03/19 (P) FYE 03/20 (P)

Operating Income (¥100M) 105 107 134 156

Net Income (¥100M) 70 78 92 -

Net Customer Growth (1,000 households)

LP Gas 40 32 45 50

Existing City Gas 10 7 10 10

New City Gas 110 98

(Application number :111) 200 200

The number of NICIGAS’ stocks Transaction Date of sale

1,460,000 Purchased by TEPCO EP Mar. 29, 2018

741,000 Sold in stock market Apr. 6, 2018

3

2. Financial Results / Summary (04/17 – 03/18) Significant Customer Growth. Operating Income exceeded the target

• Added 138K net new customers in a year since deregulation of retail City Gas started. Gas sales volume also increased (+34K ton, YoY).

• Gross Profit was +¥900M YoY. SG&A Expenses was +¥2.4B YoY with active advertisement. Operating Income was ¥10.7B (▲¥1.5B, YoY), above the target of ¥10.5B.

Total of all segments FYE 03/17 FYE 03/18 +/- +/-(%)

PL(¥100M)

Net Sales 1,095 1,147 +52 +4.7%

- LP Gas business 663 647 ▲16 ▲2.4%

- Existing City Gas business 433 450 +17 +3.9%

- New City Gas business - 50 +50 -

Gross Profit 569 578 +9 +1.6%

SG&A Expenses 447 471 +24 +5.4%

- Cost to Acquire*(CTA) 65 73 +8 +12.3%

- Advertising Expenses 19 26 +7 +36.8%

Operating Income 122 107 ▲15 ▲12.3%

- LP Gas business 82 80 ▲2 ▲2.4%


- New City Gas business - ▲19 ▲19 -

Net Income 69 78 +9 +13.0%

Business scale

Net Customers Growth (households) 46,776 137,693 +90,917 +194.4%

Customers (households) 1,200,553 1,338,246 +137,693 +11.5%

Gas sales volume (1,000 t) 640 674 +34 +5.3%

- LP Gas business 315 330 +15 +4.8%

- Existing City Gas business 325 323 ▲2 ▲0.6%

- New City Gas business - 21.4 +21.4 -

*Digits rounded after the decimal point. *+/-／ +/- (%) is calculated after adjusting to ¥100M units.

* CTA: cost for acquisition and retention of LP Gas customers, including gas cylinders, meters, services and personnel costs.

4

• Customer number increased by 4% YoY. Gas sales volume increased by 4.8% YoY due to customer increase and colder weather. Gross Profit decreased (▲¥200M, YoY), mainly due to higher raw material

cost. CTA increased as expected, resulting in flat (YoY) SG&A Expenses of ¥29.3B. Operating Income slightly decreased to ¥8.0B YoY.

2. Financial Results / LP Gas Business Gas Sales Volume Increased with Increased Customers. Gross Profit was almost Flat YoY.

LP Gas Business (¥100M) FYE 03/17 % FYE 03/18 % +/- ／ +/-(%) Remarks

Net Sales 663 100.0% 647 100.0% ▲16／▲2.4%

- Gas 501 565 +64／+12.8% - Resulting from larger gas sales volume and higher

gas sales price.

- Equipment sales, etc. 161 82 ▲79／▲49.1% - Decreased due to exit from cassette cartridge

business.

Gross Profit 375 56.6% 373 57.7% ▲2／▲0.5% - Negatively affected by higher raw material cost.

SG&A Expenses 293 44.2% 293 45.3% +0／+0.0%

- Personnel Cost 88 88 +0／+0.0% - Number of employees increased. Base payment

raised.

- Cost to Acquire* (CTA) 65 73 +8／+12.3% - Increasing competition with major competitors.

- D&A Expense 36 38 +2／+5.6%

Operating Income 82 12.4% 80 12.4% ▲2／▲2.4%

Operating Income exc. CTA 147 153 +6／+4.1% - NICIGAS’ KPI (which eliminates the effects from

fluctuation of CTA amounts)

Net customer growth (households)

35,289 32,119 ▲3,170／▲9.0%

Total customers (households) 795,668 827,787 +32,119／+4.0%

Gas sales volume (1,000 t) 315 330 +15／+4.8% - Due to Increase in customers and colder weather.

- Residential use 182 192 +10／+5.5%

- Commercial use 133 137 +4／+3.0%



• The net customer growth was 7K, ▲4K YoY. Competition started in Existing City Gas market.

• Gross Profit increased (+¥300M YoY). Increase in sales volume for residential customers (+7.8% YoY) absorbed decrease in Gross Profit from negative impact on slide time lag. SG&A Expenses decreased (▲¥300M YoY) due to decrease in D&A Expenses. Operating Income was ¥4.6B, +¥600M YoY.

5

Existing City Gas Business (¥100M)

FYE 03/17 % FYE 03/18 % +/- ／ +/-(%) Remarks

Net Sales 433 100.0% 450 100.0% +17／+3.9%

- Gas 342 367 +25／+7.3%

- Equipment sales, etc. 91 82 ▲9／▲9.9% - Due to one time large gas equipment sales

for large customers in FYE 03/17

Gross Profit 194 44.8% 197 43.8% +3／+1.5% - Due to increase in gas sales volume for

residential customers, etc.

SG&A Expenses 154 35.6% 151 33.6% ▲3／▲1.9%

- D&A Expense 64 60 ▲4／▲6.3%

- Personnel Cost 40 39 ▲1／▲2.5%

Operating Income 40 9.2% 46 10.2% +6／+15.0%


11,487 7,446 ▲4,041／▲35.2% - Resulted from activating Existing City Gas

market.

Total customers (households) 404,885 412,331 +7,446／+1.8%

Gas sales volume (1,000 t) 325 323 ▲2／▲0.6%

- Residential use 115 124 +9／+7.8% - Due to Increase in customers and colder

weather.

- Commercial use 210 199 ▲11／▲5.2%

Slide time lag +0.2 ▲1.6 ▲1.8／-

済表更新済

2. Financial Results / Existing City Gas Business Gas Sales Volume for Residential Customer Increased. Operating Income Increased (YoY).


New City Gas Business (¥100M)

FYE 03/18 (F)*

FYE 03/18 (A) % Remarks

Net Sales - 50 100.0%

- Gas - 27

- Equipment sales, etc. - 23 - Mainly sales of water heaters, gas stoves, and fan heaters.

Gross Profit 8 8 16.0% - Net sales after deduction of raw material cost, pipeline charge

paid to Tokyo Gas, and first year discount.

SG&A Expenses 34 27 54.0%

- Operating Expenses 10 9 - Including CTA, Personnel Cost, and Overhead Expenses

- Advertising Expenses 20 17 - Mainly expenses of TVCM. Less than the plan.

- IT 4 0.3

- Pipeline Charge (Pipeline Charge for Tokyo Gas is included in COGS)

- 0.9 - Increase due to switching customers from City Gas retailers

except Tokyo Gas.

Operating Income ▲26 ▲19 ▲38.0%


110,000 98,128

Application: 110,628 - The number of applications exceeded 110,000.

Gas sales volume (1,000 t) 18 21.4

- Residential use - 15.9 - Gas sales volume per residential customer is higher than plan.

- Commercial use - 5.5 - Resulting from strong sales for commercial customers.

• The number of New City Gas applications exceeded the plan of 110K. Gas sales volume exceeded the plan. It was due to the residential customers’ gas consumption was larger than expected and sales for the commercial customers was better than expected.

• Gross Profit was ¥800M, as planned. SG&A Expenses was ¥2.7B, below the target by ¥700M with Advertising Expenses below plan. Operating Income was ▲¥1.9B, above the plan by ¥700M.

6

2. Financial Results / New City Gas Business Total Application Number Exceeded 110K. Gas Sales Volume was above the Target.

* Figures of three-year plan.


• Operating Income for FYE 03/18 was ¥10.7B, above the plan of ¥10.5B. Reviewed Operating Income by Segment for FYE 03/19 and FYE 03/20, based on the performance of FYE 03/18. No change in operating Income Target of ¥13.4B and ¥15.6B for FYE 03/19 and FYE 03/20.

7

82 80 93

106

45

46

49

49

▲5 ▲19 ▲8

1

122 107

134

156

▲40

0

40

80

120

160

LP Gas Business Existing City Gas Business New City Gas Business Operating Income

FYE 03/17 (A) FYE 03/18 (A) FYE 03/19 (P) FYE 03/20 (P)

Operating Income exceeded the plan.

Please see P. 8 for the comparison between the plan and actual results for FYE 03/18.

3. Progress of Three-Year Plan / Operating Income by Segment Operating Income for the 1st Year (FYE 03/18) was above the Plan by ¥200M.

Plan: 105

(Original: 95) (Original:107)

(Original: 47)

(Original: 48)

(Plan:46)

(Plan:85)

(Original:▲8)

(Original: 1)

(Plan:▲26)

(Original: 134)

(Original:156)

(A)

(A)

(A)

(A)

Actual (solid line)

Plan (dotted line)

Existing City Gas business

LP Gas business

Operating Income

New City Gas business

(¥100M)

Operating Income Plan by Segment

80

46

▲19

107

▲30

0

30

60

90

120

LPガス事業

（実績/計画）

旧都市ガス事業

（実績/計画）

新都市ガス事業

（実績/計画）

合計

（実績/計画）

85

46

▲26

105

Plan

Actual

Actual

• Operating Income for LP Gas business was ¥8.0B, ¥500M below the plan due to higher raw material cost. Operating Income for Existing City Gas business of ¥4.6B was in line with the plan.

• Operating Income for New City Gas business was ▲¥1.9B, ¥700M above the plan. Advertising

Expenses were ¥300M lower than the plan.

Affected by higher raw material price

100% of the plan Advertising Expenses below plan

8

3. Progress of Three-Year Plan / Progress by Segment in FYE 03/18 Operating Income for New City Gas Business Exceeded the Plan.

4/21 Update

(P) (A) +/- (P) (A) +/- (P) (A) +/- (P) (A) +/-

Gross Profit 380 373 ▲7 189 197 +8 8 8 +0 577 578 +1

SG&A Expenses 295 293 ▲2 143 151 +8 34 27 ▲7 472 471 ▲1 Operating

Income 85 80 ▲5 46 46 +0 ▲26 ▲19 +7 105 107 +2

LP Gas Business Existing City Gas Business New City Gas Business Total

Actual Plan

Plan Plan Actual

120

90

60

30

0

▲30

LP Gas Business FYE 03/18 (A) / FYE 03/18 (P)

Existing City Gas Business FYE 03/18 (A) / FYE 03/18 (P)

New City Gas Business FYE 03/18 (A) / FYE 03/18 (P)

Total FYE 03/18 (A) / FYE 03/18 (P)

*Digits rounded after the decimal point.

Operating Income by Segment (¥100M)

• Net customer growth in 04/17 - 03/18 was 138K, significantly exceeding FYE 03/17 result. • Increased 32K LP Gas customers. It was ▲3K YoY, mainly due to churn by apartments’ residential

customers. Customer addition through D2D sales maintains solid growth. • Increased 7K new Existing City Gas customers. ▲5K YoY, due to customers’ switch to new entrants.

Competition started in Existing City Gas market. • The number of New City Gas applications exceeded the target of 110K (as of the end of 03/18). New

sales channel introduced since 2018 contributed to acceleration of customer acquisition.

FYE 03/17 (A) FYE 03/18 (P) FYE 03/18 (A) FYE 03/19 (P) FYE 03/20 (P)

LP Gas net customer growth 35 40 32 45 50

Existing City Gas*1

net customer growth 12 10 7 10 10

New City Gas*2 net customer growth - 110

98 (Application as of 03/18：111)

200 200

Total customer growth 47 160 138 255 260

Total customer number 1,201 1,361 1,338 1,593 1,853

9

済表更新済

3. Progress of Three-Year Plan / Customer Acquisition Added Customers in Each Segment to Achieve Full-year Target .

*1: City Gas business in the area where NICIGAS is already supplying gas *2: City Gas business in the area where NICIGAS could enter only after

deregulation of retail City Gas.


Progress in customer acquisition (1,000 households)

10

(¥100M) FYE 03/17 (A) FYE 03/18 (A) FYE 03/19 (P) FYE 03/20 (P)

1st year of deregulation 2nd year of deregulation 3rd year of deregulation

LP Gas business

Net customer growth (1,000 households) 35 32 45 50

Customers (1,000 households) 796 828 873 923

Gas sales volume (1,000 t) 315 330 340 352

Gross Profit 375 373 388 406

SG&A Expenses 293 293 295 300

Operating Income 82 80 93 106

Existing City Gas business (NICIGAS’ exclusive area)

Net customer growth (1,000 households) 12 7 10 10

Customers (1,000 households) 405 412 422 432

Gas sales volume (1,000 t) 325 323 323 321

Gross Profit 188 197 197 195

SG&A Expenses 143 151 148 146

Operating Income 45 46 49 49

New City Gas business (Other retailers’ exclusive area)

Net customer growth (1,000 households) - 98 200 200

Customers (1,000 households) - 98 298 498

Gas sales volume (1,000 t) - 21.4 80 160

Gross Profit 6 8 25 45

SG&A Expenses 11 27 33 44 Operation Expenses 1 9 14 21

Advertising Expenses 10 17 14 12

IT 0 0.3 2 4

Pipeline Charge

0 0.8 3 7

Operating Income ▲5 ▲19 ▲8 1

Increasing led by customers’ switch

3. Progress of Three-Year Plan / Appendix: Breakdown of Operating Income by Segment: New City Gas business will be profitable in three years.

(Pipeline Charge for Tokyo Gas is included in Cost.)

Positive turnaround with customer expansion.

Deregulation of City Gas retail

• Continuously focusing on return to shareholder, plan to increase dividend for FYE 03/19. • Deregulation of retail City Gas started in Apr. 2017. While NICIGAS is still in the stage of investment, in

order to enhance return to shareholders, will continuously increase dividend, as well as considering financial capacity, CF position and ensuring funds for growth.

FYE 03/13

(A) FYE 03/14

(A) FYE 03/15

(A) FYE 03/16

(A) FYE 03/17

(A) FYE 03/18 (P) FYE 03/19 (P)

Dividend Per Share (¥) 13 26 26 30 34 42

Interim dividend: 19 Year-end dividend: 23

46 Interim dividend: 23

Year-end dividend: 23

Dividend Amount 631 1,120 903 1,185 1,461 1,804 1,977

Payout Ratio (Net Income Per Share)

16.7% (78.01)

11.8% (220.93)

17.5% (148.26)

15.7% (190.71)

21.0% (161.93)

23.0% (182.62)

21.4％ (215.44)

Treasury Share Repurchase Amount

1 10,239※1 14,394※2 2 2 3 -

11

4. Return to Shareholder Continuously Increasing Dividend. Plan to Increase Dividend Per Share from ¥42 (FYE 03/18) to ¥46 (FYE 03/19)

*1 From Iwatani Corp., etc. *2 From OEP *Dividend Amounts are as approved by board resolution. Payout Ratio = Dividend Per Share / Net Income Per Share

Dividend and Net income per share: ¥, Others: ¥M

▲200

▲150

▲100

▲50

0

50

100

150

200

250

▲20

▲15

▲10

▲5

0

5

10

15

20

25

13/12 14/12 15/12 16/12 17/12

• Total sales, EBITDA, and Net Income for FYE Dec. 2017 registered US$198M, US$8M, and US$5M, respectively. North American business recorded net profit for the 2nd consecutive year with the 3rd consecutive year of net profit (Non-consolidated basis) of Entrust, which generated the majority of revenue and profit in North American business.

• The number of customers (as of the end of Dec. 2017) was 247K. Customer base increased by c. 4 times in 4 years. Continuously focusing on expanding customer base in FYE Dec. 2018.

Net Income/ EBITDA (US$M)

12

Sales (US$M)

2nd consecutive year of net profit

5. Overseas Business Achieved net profit in FYE Dec. 2017 for the 2nd consecutive years. Customer Base Increased by about 4 time in 4 Years.

Trends in customer number

61.5

200

175 174

247

0

50

100

150

200

250

300

13/12 14/12 15/12 16/12 17/12

Total customers （1,000 households）

Increased by c. 4 times in 4 years

Trends in performance

* Equity method (about 50%) is applied to North American business. About 50% of net income to be recorded as NICIGAS’ non-operating income (loss), 3 months later.

EBITDA

Net Income

Sales

13

6. Corporate Governance Reduced Cross-shareholdings Stocks. Focusing on Diversity Promotion.

• Reduced cross-shareholdings with multiple financial institutions (the “Sellers”). While NICIGAS sold a part of Sellers’ stock, Sellers sold 2,201K NICIGAS’ stocks (1,460K stocks were purchased by TEPCO EP, 741K stocks were sold in the stock market).

• Promoted diversity in NICIGAS’ new corporate structure for sustainable and variable growth. The first female executive officer appeared in Apr, 2018.

NICIGAS’ stocks sold by financial institutions

Outside Director / Outside Auditor

Outside director Professional background

Takashi Ide Certified public accountant

Tetsuo Kawano Major financial institution

Outside auditor Professional background

Shojiro Sakamoto*1 Ministry of Economy, Trade and Industry

Tsuyoshi Yamada Attorney, University professor

Katsuhisa Nakajima Certified public accountant

Yuko Gomi*2 Attorney

*1: Scheduled to retire in late Jun. 2018. *2: Scheduled to be appointed in late Jun. 2018.

The number of NICIGAS’ stocks Transaction Date of sale

1,460,000 Purchased by TEPCO EP Mar. 29, 2018

741,000 Sold in stock market Apr. 6, 2018

3,060 4,910

7,147 6,498 7,506 7,885

9,032 10,015

11,811 12,201 10,689

13,400 15,600

0

5,000

10,000

15,000

20,000

2008/3 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3

545 567 584 602 603 620 631 631 643 640 674 743 833

791 850 892 936 981 1,029 1,067 1,108 1,154 1,201 1,338

1,593 1,853

0

400

800

1,200

1,600

2,000

0

200

400

600

800

1,000

1,200

2008/3 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3

Operating Income (¥M)

Number of customers has increased by 1.7 times

Operating Income

Customers

Gas sales volume

Operating Income increased by 3.5 times in 10 years

FYE 03/12 –FYE 03/17

Achieved six consecutive years of record profit

14

(P)

7. Financial Highlights / Profit and Customer Growth 3.5x Operating Income and 1.7x Customer Number in 10 Years.

(P)

(P) (P)

(P)

(P)

FYE 03/18

Intentionally decreased profit

4/21 Update • Operating Income and number of customers increased by 3.5 times and 1.7 times respectively in 10 years. While achieved six consecutive years of record Operating Income in FYE 03/17, for the further growth, intentionally decreased Operating Income in FYE 03/18 for further growth.

Operating Income


Gas sales volume (1,000 t) Customers

(1,000 households)

Gas sales volume / Customers

121,987 124,958 123,496 123,910 139,097 139,157 137,953

48,565 53,016 44,831

34,969 60,316

66,641 72,076

3,121 3,774

9,464 5,528

7,090 6,913 7,798

0

4,000

8,000

12,000

16,000

0

40,000

80,000

120,000

160,000

2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3

34,246 14,494 17,165 14,914

(104,822) (110,044) (109,002) (106,843) (104,851) (107,739)

31,418

(106,486)

17,067 31,467

B/S (¥M) 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3

Capital to Asset Ratio 29.9% 32.2% 36.3% 28.2% 43.4% 47.9% 52.2%

Net Interest-bearing Debt*1 29,905 29,730 34,578 44,286 16,937 13,572 7,462

Net D/E Ratio 0.62 0.56 0.77 1.27 0.28 0.20 0.10

ROA*2 2.6% 3.0% 7.7% 4.5% 5.1% 5.0% 5.7%

ROE*3 10.4% 9.8% 22.2% 13.9% 14.9% 10.9% 11.2%

Total Assets (exc. Cash & Deposits) are almost unchanged.

Disposal of treasury stock to secure growth capital

15

Extraordinary gain due to the acquisition of 100% stock of 4 affiliate City Gas companies

済

7. Financial Highlights / B/S: Increased Profits with Stable Asset Size. Strengthened Financial Capacity.

*Digits rounded after the decimal point. *1 Net Interest-bearing Debt except lease debt. *2 ROA= Net Income / Total Assets × 100

*3 ROE= Net Income (current year) / (average of Equity Capital of the current and previous FY) × 100

Total Assets / Total Equity / Cash & Deposits (¥M )

Net Income (¥M)

Total Asset

Total Equity

Cash & Deposit

Net Income

B/S and Net Income

• Total asset size (excl. cash and deposits) remained almost unchanged since FYE 03/12. Except FYE 03/15 due to extraordinary gain in FYE 03/14, Net Income is increasing.

• Capital to asset ratio was 52.2% as of Mar. 2018. Will further focus on capital efficiency.

15,225 13,864 17,699

20,717 16,630 15,597

▲14,310

▲7,170 ▲11,230 ▲11,073 ▲10,743

▲7,059 ▲3,554 ▲7,393

▲3,856

7,568

▲8,717 ▲8,454

915 6,694 6,469

9,644 5,887 8,538

▲20,000

▲10,000

0

10,000

20,000

30,000

2013/3 2014/3 2015/3 2016/3 2017/3 2018/3

16

• FCF increased to ¥8.5B (+¥2.6 YoY) in FYE 03/18. CF from Operations decreased by ¥1.0B YoY, while CF from Investing improved due to less investment in pipeline (▲¥1.2B YoY) and sales of cross-

shareholdings stocks.

(¥100M) FYE 03/17 FYE 03/18 +/-

CF from Operation +166 +156 ▲10

-Net Income before tax +101 +112 +11 - Stock ▲3 ▲9 ▲6

CF from Investing ▲107 ▲71 +36 - Balance of investment

securities ▲3 +8 +11

CF from Financing ▲87 ▲85 +2 - Balance of loans

payable ▲62 ▲58 +4

- Dividends ▲15 ▲15 +0

FCF +59 +85 +26

＜Comparison with FYE 03/17＞ Cash Flow (¥M) 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3*

CF from Operations 15,225 13,864 17,699 20,717 16,630 15,597

CF from Investing ▲14,310 ▲7,170 ▲11,230 ▲11,073 ▲10,743 ▲7,059

CF from Financing ▲3,554 ▲7,393 ▲3,856 7,568 ▲8,717 ▲8,454

Free Cash Flow (FCF*) 915 6,694 6,469 9,644 5,887 8,538

(¥M) 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3*

Pipeline 6,713 6,645 5,918 5,142 5,664 4,533

Vehicles 916 1,360 1,224 1,396 833 1,230

Depots 1,475 78 644 590 1,093 805

Gas Supply Facilities 927 580 621 624 650 652

ICT 194 471 400 1,466 1,423 932

Filling Plants 442 0 0 0 97 0

M&A 752 317 332 320 444 69

Others 861 615 3,830 1,847 314 757

7. Financial Highlight / Cash Flow Continue Aggressive Growth Investments in FYE 03/18. Focusing on Investing in ICT.

*CF during 12 months (Apr. 2017- Mar. 2018)

Breakdown of capital investment

Cash Flow (¥M) *CF during 12 months (Apr. 2017- Mar. 2018)

Expand due to profit increase

Disposal of treasury stock

(¥19,375M)

*FCF (Free Cash Flow)=CF from operations – CF from investing

FCF

CF from Operations

CF from Financing CF from

Investing

* Breakdown of capital investment is based on accrual basis. Construction in progress was adjusted.


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Making up 4Q cost of sales last year

Making up 4Q cost of sales last year

8. Appendix / Raw Material Price LP Gas Raw Material Price has been Decreasing with increasing LNG Raw Material Price since 2018

Source: - Propane Gas FOB Price: Japan LP Gas Association website - LNG Raw Material Price: NICIGAS average purchase price

US $ / t

455~500US $ / t (FYE 03/19 assumption)

17

• LP Gas raw material price has been decreasing since 2018. The price in FYE 03/19 is assumed to be 455 – 500 US$ / t.

• LNG raw material price, which makes up the cost of sales of City Gas business, has been slightly increasing since 2018. The price in FYE 03/19 is assumed to be ¥54.3K - ¥58.6K / t.

04/18：

475US$/t

¥54,310~¥58,640 / t (FYE 03/19 assumption)

¥1,000 / t

Propane Gas FOB Price LNG Raw Material Price

Total of all segments FYE 03/17

4Q only (Jan.- Mar.) FYE 03/18

4Q only (Jan.- Mar.) +/- +/-(%)

PL(¥100M)

Net Sales 336 369 +33 +9.8%

- LP Gas business 203 209 +6 +3.0%



Gross Profit 176 186 +10 +5.7%

SG&A Expenses 121 115 ▲6 ▲5.0%

- Cost to Acquire*(CTA) 22 17 ▲5 ▲22.7%

- Advertising Expenses 8 2 ▲6 ▲75.0%

Operating Income 55 71 +16 +29.1%

- LP Gas business 36 50 +14 +38.9％

- Existing City Gas business 19 24 +5 +26.3％

- New City Gas business - ▲3 ▲3 -

Net Income 24 46 +22 +91.7%

Business scale

Customers (households; net growth) 11,440 36,110 +24,670 +215.6%

Customers (households) 1,200,553 1,338,246 +137,693 +11.5%

Gas sales volume (1,000 t) 206 223 +17 +8.3%

- LP Gas business 103 109 +6 +5.8%



18

• Gas sales volume increased by 17K ton (YoY) due to gas sales to LP Gas / New City Gas customers. Gross Profit increased by ¥1.0B (YoY) due to larger gas sales volume with decreased SG&A Expenses by ¥600M (YoY). It was due to disciplined CTA and Advertising Expenses. Operating Income significantly increased by ¥1.6B YoY.

8. Appendix / Performance (01/18 – 03/18) Gas Sales Volume Increased. With Disciplined CTA and Advertising Expenses, Resulted in significant growth of Operating Income.



スライド 1...1 Summary P.2 2 Financial Results (FYE 03/18) Summary P.3 LP Gas Business P.4...

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Transcript of スライド 1...1 Summary P.2 2 Financial Results (FYE 03/18) Summary P.3 LP Gas Business P.4...