Grow with Energy̶Go beyond Energy Toho Gas Group Initiatives Strategy 3 Taking on New Scopes Strategy 2 Enhance energy-related businesses Development into at home and abroad and Strategy 1 a Total Energy Provider venture into new business scopes Toho Gas Group Initiatives FY2019‒FY2021 that bring synergy effects. Further Growth of Offer optimal proposals for the City Gas Business the three different energies and provide added value through Toho Gas Group Ensure safety, security and stable supply. new services. Further strengthen cost competitiveness. Medium-Term Management Plan Deepen relationship with customers. Grow with Energy ̶ Go beyond Energy In November 2018, the Toho Gas Group formulated a new Medium-term Management Plan (FY2019 Reinforcing the business foundation of the Toho Gas Group ‒FY2021). By implementing our three key strategies while reinforcing our business foundation, we will In addition to ensuring the stable operation of the energy business, reinforce our business foundation to flexibly respond to changes in the business environment, aiming to achieve sustainable growth. further strengthen our position as an energy company that is trusted by customers and has strong roots in Reinforcement and Use of Human Resources / Improvement of Efficiency / Reform of the Organizational local communities. We will also further expand our business scope to achieve sustainable growth. Structure / Technological Development for the Future / Promotion of ESG Management Strategy 1 Strategy 2 Strategy 3 Further Growth of Development into Taking on New Scopes Reinforcing the Business the City Gas Business a Total Energy Provider Foundation of the Toho Gas Group Efforts to Support the Lives of P17 Provision of Added Value through P23 Reinforcement and Development of P25 Reinforcement and Use of P27 People in the Region New Services Group Businesses Human Resources Efforts to Support Manufacturing and P19 Strengthening of the LPG Business P24 Development of New Businesses P25 Improvement of Efficiency P28 Businesses in the Region Expansion of the Electricity Business P24 Reform of the Organizational P28 Expansion of Natural Gas Service Areas P20 Structure Stable Energy Procurement P21 Technological Development P29 at a Reasonable Price for the Future Secure Stable Supply and Safety P21 Promotion of ESG Management P31 15 Toho Gas Group Integrated Report 2020 Toho Gas Group Integrated Report 2020 16 Toho Gas Group Initiatives Strategy 1 Provide a Wide Range of Monthly charge of 305yen (tax inclusive)* Further Growth of for the following services Life Support Services 1 Emergency out-call service RakuRaku Kurashi Support 2 Gas stove cleaning and water-heater inspection (separate charges apply) the City Gas Business We are continuing to expand our living-related 3 Premium discount services service menu, in addition to RakuRaku Kurashi Water heater and built-in Support, RakuRaku Maintenance, and RakuRaku RakuRaku Maintenance stove maintenance Lease. As an example, in coordination with Air Trunk Toho Gas Group Initiatives A lease system for a reasonably Co., Ltd., we are providing preferential use of home RakuRaku Lease priced use of various gas equipment We aim to further strengthen cost competitiveness and deepen relationships with our customers, while delivery storage services according to city gas and Application website for RakuRaku Lease solidifying the basis of our gas business, which consists of ensuring safety, security and stable supply, in electricity contracts (limited to some areas). * Current as of July 2020 For details, please see our website. order to continue to achieve growth in the city gas business. Strengthening and Expanding My House Meister Services (current as of July 2020) Efforts to Support the Lives of People in the Region Materiality 1 Housing Renovation We launched a new service for renovation, My House Meister, responding to a wide range of Awarding of T-Points Periodic inspection Daily-life 10-year extended As a partner in customers' daily lives, we will offer proposals for a comfortable and ecological life, and according to system assistance service warranty customer needs related to housing and living as contract amount for equipment provide a wide range of services tailored to the various lifestyles of customers. In addition, by leveraging a partner in the area of daily living. Easy Advance introduction Prompt response consultation to a construction the strength of the Group's "security and service system close to the community," we will enhance From minor concerns to full-scale renovation, for estimates via LINE system Meister is a one-stop solution as a general Also support in the event of a problem and continue to be a company of choice for our customers. Support for Meister membership Customer partner in customers' daily lives in the region. cashless program (awarding of referral payment discount coupons, etc.) program Propose Comfortable and Ecological Life For details, please see our website. To further the popularization of zero-net-energy houses (ZEH*) In addition to improving power generation efficiency (from 52% Enhancement of Security and Service System Close to the Community and the like, we are promoting expansion of high-efficiency gas for the previous model to 55%), it is equipped with an IoT equipment that enhances convenience for customers. function to achieve remote control of city gas appliances. In Around-the-clock phone service for customers expanded to cover the *1Acceptance of repair requests 1 and reservations for gas and ENE FARM is a residential gas cogeneration system that addition, types that can continue power generation even during acceptance of reservations for gas and electricity connections* on top of electricity connections only dealing with requests for repair service. This is designed to enable customers' (on-site repair service is not generates electricity for household use through a chemical a power outage are also available in the product lineup. Gas appliance repair services included) reaction between hydrogen extracted from city gas and other access to Toho Gas staff 24 hours a day, 365 days a year, as part of our efforts *2Gas appliance repair services Z E H： Residential housing whose aim is to realize zero annual net to make our service more convenient and expeditious for customers while from 7:00 p.m. to 9:00 p.m. are fuels and oxygen in the air. The heat generated as a byproduct available to our gas customers consumption of primary energy by achieving dramatic energy savings *1 of this process is also effectively used for hot water supply. relieving them of any source of concern. *2 for residential gas appliances. by vastly improving insulation performance and the like and adopting For details, please see our High-quality services including a troubleshooting maintenance and repair We launched sales of the new model of ENE FARM on 2020. high-efficiency equipment systems as well as renewable energy. website. service offering on-site repair of gas equipment up to 9:00 p.m.*2, free *3For details, please see our website. inspection that includes plumbing*3, and more are provided. Electricity Improvement in CS* ※Customer Satisfaction Fuel ENE FARM dedicated Based upon our management policy of "Customer ◎Flow of customer feedback cell unit heater and boiler First," Toho Gas Group has a CS Promotion Management Initiatives to Gas boiler bath-room Gas boiler Power Electricity Employees improve CS Promotion heater/dryer floor heater generation Committee with members including officers and Affiliated companies operational Committee Partner associations Hot-water heater Heat department heads, where we decide upon basic activities policy for CS activities. Based upon this, the CS View and search Analysis and Hot- Remote control of Governing Board and CS organizations within each (excludes personal compilation of water Opinions information) customer feedback Stove Bath Boiler tank division, together with affiliated companies, Complaints bath-filling and Customers Praises Confirmation floor-heating ENEDO, gas engineering companies and others, Koe- of details DAS Boiler operation work together to improve work quality and service. ENE FARM type S residential fuel cell system City gas Contact Responding Customer feedback gained through contact with personnel Record of （record system Measures to division customer of customer prevent various customers is used to create a valuable feedback feedback） recurrence management resource database. In FY2019, we Request for response TOPICS received 9,516 instances of feedback, including Prompt response ●Engagement of Mao Asada in a New Series of opinions, complaints, and praise. We share these Television Commercials with related divisions for the purpose of prompt ◎Examples of Improvements Made Through Customer Feedback (FY2019) Customer feedback Response response and operational improvements. Former ice figure skater Mao Asada has been appearing in the "My I want to pay my gas bill LINE Pay added to payment slips as Also, we conduct a Customer Satisfaction Survey using electronic money. an available payment method Answer Is Toho Gas Group" series of television commercial when customers subscribe to gas, have gas Launched service to automatically I want to earn Gas-Teki Points messages as our new brand ambassador since November 2019. award Gas-Teki Points according to equipment repaired, or have our regular safety with my gas bill. gas and electricity payment amounts The "My Answer Is Toho Gas Group" messages showcase inspections.