President's Message

　The Toho Gas Group, an energy group operating mainly in Aichi, Gifu and Mie Prefectures, focuses on supplying natural gas, a clean, environment-friendly source of energy.
　City gas customers increased 0.5% from the previous year, to 2,310,000 customers as of March 31, 2011. Gas sales volume during the year ended March 31, 2011 increased 7.8% from the previous year, to 3.9 billion m³, supported by our demand development efforts and the increased operation of existing customers' facilities. Sales volume has increased, after three years of declines, to the peak level recorded in fiscal 2007 before the Lehman crisis. We also managed to retain moderate profits with increased sales volume and decreased depreciation expenses, though gas resources costs increased due to the rise in the crude oil price.
　The Great East Japan Earthquake has caused tremendous damage in extensive regions and has had a grave impact not only economically, but in many other aspects as well.
　In the Medium-term Management Plan (for fiscal 2009 to 2013), the Toho Gas Group has emphasized "Maintaining of steady supply, safety, and freedom from anxiety" as the core mission of our gas business. In addition to our effort to ensure stable LNG procurement, we will promote steady improvement of production and supply facilities. Gas pipeline earthquake resistance will be reinforced; moreover, the gas pipeline network will be divided into smaller blocks to minimize the impact in the event of earthquake. Disaster control systems and organizations will be reinforced and safety-type gas equipment will be introduced. Based on lessons learned from this great earthquake, we will take necessary safety measures as soon as practicable.
　Though the earthquake has had a negative impact on the economy of our service areas, mainly in manufacturing industries, because the region we serve is a world-leading center of the manufacturing industry, quick recovery of production is expected; the region has great potential for business growth. Moreover, natural gas is expected to play a more important role, as it is environment-friendly and of stable supply.
　Under these circumstances, we will steadily implement priority issues of our Medium-Term Management Plan including "Expansion of demand for natural gas", so as to respond all the more flexibly to changing conditions. As an energy company, we will uphold our responsibility to ensure energy supply, while contributing to the realization of an environment-conscious society.
　The Toho Gas Group will grow sustainably with local society, and contributing to actualizing a society in harmony with its environment and grow as a corporate group that is supported by shareholders, investors, customers and other stakeholders.
　We truly appreciate the continuing understanding and support of our shareholders and investors.