President's Message

President Michiaki Hirose

In October 2017, Tokyo Gas Group formulated its new medium-term management plan, "GPS 2020: Tokyo Gas Group – Initiatives for Energy and the Future." This will serve as the foundation for development going forward as we seek to respond in an appropriate manner to the sweeping changes that have impacted our business environment, including the liberalization of energy, the shift toward a low-carbon society, the promotion of energy-saving, and digitalization. Outlining our strategy for developing gas (G), power (P), and services (S) on a global level (xG), this plan is the culmination of the Challenge 2020 Vision that we unveiled in November 2011.

To ensure the successful implementation of "GPS2020," we will pay particular attention to four key points as we move forward.

First, we must view this period of upheaval as an opportunity to think outside the box and keep pursuing the transformation of our business. The era of liberalization will lead to new products and services that could not have been imagined before. We too must think of fresh ideas and put them into practice. Our aim is to become Japan's leading total energy group by establishing a structure that enables us to tackle new challenges and keep progressing and creating new value even if we encounter obstacles along the way.

Second, our transformation must be driven by our front-line experiences. The seeds of new business are generated by combining an understanding of customer needs with the development of technologies and business models. One of the strengths of our group is the experience that we have accumulated serving 11.5 million customers over 132 years of operations. We intend to push forward with innovating and creating new services and businesses by leveraging our first-hand knowledge of customer needs along with digital technologies.

Third, collaborating with a wide range of business partners will be more important than ever. We have already forged relationships with many partners in response to the evolving business environment and leveraged these to develop our business. Going forward, with the environment expected to change dramatically, it will be essential to collaborate even more than before with other companies in order to realize our group's GPSxG vision. Not restricting ourselves to existing notions about how to do business, we will actively seek to collaborate with companies of all kinds, including start-ups.

Fourth, we need a diverse, engaged workforce. "GPS2020" provides a platform for Tokyo Gas Group to pursue a wide range of activities. It is our aim to become a corporate group that empowers personnel of all kinds required in different areas—including the digital sector, new services, the increasingly specialized energy business, and our overseas business—to flourish in their work.

The greatest strength of Tokyo Gas Group is the brand values of "safety, peace of mind, and reliability" that we have established among our customers and stakeholders over the course of 132 years. It is vital that we continue to preserve these brand values in the future, by ensuring safe, stable supply, making compliance a priority, and being honest with our customers. We are grateful for your continued support and understanding.

Takashi Uchida
President
April 2018

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