Toho Gas
Basic Information
- Stock Code
- 9533
- Industry
- Electric Power and Gas Industry
- Category Detail
- Electric Power & Gas
- Prefecture
- Aichi Prefecture
- Establishment Year
- June 1922
- Listing Year
- May 1949
- Official Website
- https://www.tohogas.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- TOKAI Holdings, Nichigas, Tokyo Gas, Osaka Gas, Hokkaido Gas, Hiroshima Gas, Saibu Gas HD, Hokuriku Gas, Keiyo Gas, Shizuoka Gas
Overview
Toho Gas, founded in 1922 and centered in Aichi Prefecture, is a major player in the electric power and gas industry engaged in urban gas supply business, focusing on the development of synthetic methane and hydrogen infrastructure to achieve a decarbonized society.
Current Situation
Toho Gas recorded consolidated sales of approximately ¥485.6 billion and operating profit of approximately ¥21.3 billion for the fiscal year ended March 2020, maintaining solid management. It serves over 2 million customers and is one of the major urban gas suppliers across Aichi, Gifu, and Mie Prefectures. In recent years, it has actively advanced infrastructure development, such as completing the Ise Bay Cross-Bay Gas Pipeline in collaboration with Chubu Electric Power. The Technical Research Institute has established 'CaN-Lab,' a facility focused on carbon neutrality, with demonstration equipment for synthetic methane and hydrogen supply now operational. While strengthening sustainability-oriented business expansion, it is also focusing on urban development through redevelopment to contribute to the local economy. In 2024, considering the exemption from surcharge payment due to voluntary disclosure of bid-rigging, enhancing compliance remains a key challenge. In the medium to long term, it aims to further solidify its position as the region's energy infrastructure provider by promoting diversification of decarbonized energy sources.
Trivia
Interesting Facts
- Urban gas company established in 1922 by acquiring Nagoya Gas.
- Expanded supply area to 50 cities, 25 towns, and 1 village mainly in Aichi, Gifu, and Mie Prefectures.
- Completed Ise Bay Cross-Bay Gas Pipeline jointly with Chubu Electric Power.
- Opened carbon neutrality technology visitor facility in spring 2024.
- Rare case of exemption from surcharge payment after voluntary disclosure of bid-rigging suspicions.
- Entered fisheries business with land-based salmon farming.
- Supporting regional redevelopment project 'Minato Akron'.
- Diversifying customer base through power sales business.
- Comprehensive energy company with diverse subsidiaries.
- One of the four major urban gas operators in the Chubu region.
- Initiated hydrogen supply infrastructure verification since 2023.
- Gas Energy Museum and technical research institute serve as regional technology hubs.
- Featured Chubu Dragons' Masahiro Yamamoto and Mao Asada in CMs.
- Headquarters in Atsuta Ward, Nagoya; supports region with full-scale urban gas supply.
- Promoting disaster measures and stable energy supply rooted in local community.
Hidden Connections
- Numerous joint ventures with Chubu Electric Power, deepening regional energy integration.
- Holds historical influence in Nagoya business circles as one of the Go-Setsu-ke families.
- Voluntary disclosure of bid-rigging drew attention from the Japan Fair Trade Commission.
- Land-based salmon farming represents cross-industry fusion with core energy business.
- 'Minato Akron' redevelopment area serves as a model for regional revitalization and environmental harmony.
- Major shareholders include major financial institutions like Nippon Life and Sumitomo Mitsui Banking.
- Strengthening PR activities as title sponsor of local TV and radio programs.
- Group companies provide integrated services from gas-related appliances to piping construction.
Future Outlook
Growth Drivers
- Expanding demand for decarbonized energy such as synthetic methane and hydrogen.
- Achieving efficient operations through legal corporate separation.
- New technology development via strengthened collaboration with Chubu Electric Power.
- Participation in regionally rooted urban development projects.
- Revenue diversification through expansion of retail power business.
- Increased demand for renewable energy amid stricter environmental regulations.
- Needs for smart towns and energy-saving solutions.
- Pioneering role in hydrogen society infrastructure development.
- Enhanced customer trust through improved safety and quality.
- Deepening partnerships with local communities.
- Operational efficiency improvements via advanced technology adoption.
- Elevated evaluations through ESG-focused management.
Strategic Goals
- Commercialization of synthetic methane and hydrogen supply toward carbon neutrality
- Further diversification of revenue base through strengthened power business
- Contribution to smart city development in collaboration with local communities
- Establishment of efficient operations via advanced specialization of pipeline division
- Achievement of over 50% renewable energy utilization rate
- Business operations balancing regional environmental conservation and sustainability
- Promotion of energy savings through expanded dissemination of high-efficiency gas appliances
- Strengthening safe and stable energy supply framework
- Enhanced corporate value through expanded sustainability certifications
- Customer service innovation via DX (digital transformation) promotion
Business Segments
Industrial Gas Supply
- Overview
- Providing diverse gases, heat, and related services for industrial use to support productivity improvements.
- Competitiveness
- Stable supply system backed by regional closeness and technological expertise
- Customers
-
- Automotive manufacturers
- Chemical industry
- Food manufacturers
- Steel industry
- Machinery manufacturers
- Shipbuilding
- Electronic component manufacturing
- Medical institutions
- Construction industry
- Service industry
- Products
-
- Industrial city gas
- High-pressure gas supply
- Specialty gases
- Heat supply services
- Gas piping construction
- Energy consulting
- Energy-saving solutions
- Safety management services
- Maintenance services
- Renewable energy-related services
Gas Piping and Construction
- Overview
- Handling a wide range of gas piping and related construction from homes to large facilities, demonstrating high technical capabilities.
- Competitiveness
- Extensive track record and high levels of technology and safety management
- Customers
-
- Construction companies
- Remodeling contractors
- Real estate management companies
- Equipment contractors
- Municipalities
- Store operators
- Condominium management associations
- Factories
- Commercial facilities
- Home builders
- Products
-
- Gas piping construction
- Gas appliance installation
- Safety equipment installation
- Periodic inspections
- Construction management
- Safety consulting
- Energy-saving retrofits
- Equipment upgrades and renovations
- Post-construction follow-up
- Emergency response services
Energy-Related Solutions
- Overview
- Providing energy optimization and environmental solutions tailored to diverse customer needs.
- Competitiveness
- Technological development strength through collaboration with Chubu Electric Power
- Customers
-
- Government agencies
- Corporations
- Local governments
- Hospitals
- Educational institutions
- Commercial facilities
- Manufacturing industry
- Logistics industry
- Hotels
- Resort facilities
- Products
-
- Energy-saving consulting
- Carbon neutrality support
- Renewable energy adoption support
- Energy management systems
- Environmental load reduction services
- Energy efficiency improvement plans
- Hydrogen supply infrastructure verification
- Smart town development support
- Climate change countermeasures support programs
- CO2 emissions reduction plans
Gas Appliance Manufacturing and Sales
- Overview
- Manufacturing and selling household and commercial gas appliances, highly regarded for technology and safety.
- Competitiveness
- Technological development of high-efficiency energy-saving appliances
- Customers
-
- Retailers
- Home builders
- Equipment trading companies
- Design offices
- Architects
- Repair services
- General consumers
- Corporate customers
- Restaurants
- Hotels and inns
- Products
-
- Residential gas water heaters
- Gas stoves
- Commercial gas appliances
- Safety devices
- Energy-saving appliances
- Heating appliances
- Kitchen appliances
- Ventilation equipment
- Hot water heaters
- Maintenance parts
Urban Development and Real Estate Services
- Overview
- Engaged in urban development projects for regional revitalization, such as the Minato Akron redevelopment in the Minato Akuru district.
- Competitiveness
- Value creation through integration of regional closeness and energy technology
- Customers
-
- Local governments
- Corporations
- Residential developers
- Investors
- Commercial facility operators
- General consumers
- Event operators
- Public organizations
- Construction companies
- Local communities
- Products
-
- Smart town development
- Commercial facility development
- Sports facility management
- Energy supply infrastructure
- Environmentally harmonious town planning
- Urban redevelopment support
- Land utilization plans
- Environmental load reduction projects
- Public space development
- Local event support
Competitive Advantage
Strengths
- Scale as a major domestic urban gas operator
- Extensive supply area focused on the Chubu region
- Investment in technical research institute and carbon neutrality technologies
- Steady expansion of power sales business
- Comprehensive strength from diverse group subsidiaries
- Strength in regionally rooted services
- Long history and reliability
- Stable customer base
- Proactive decarbonization efforts
- Strong relationships with government and local authorities
- High safety management standards
- Broad customer network across industries
Competitive Advantages
- Possession of advanced infrastructure like the Ise Bay Cross-Bay Gas Pipeline
- Enhanced technological development through collaboration with Chubu Electric Power
- Operation of demonstration facilities for advanced synthetic methane and hydrogen supply technologies
- Business strategy integrating regional energy supply and urban development
- Stable and diverse energy product lineup
- Fine-tuned, customer-focused service deployment
- Promotion of specialization and efficiency through legal separation of pipeline division
- Business expansion with long-term sustainability goals
- One-stop services via diverse subsidiaries
- Region-leading number of gas supply customers
- Proactive investment stance in renewable energy
- Strong partnerships with local communities
Threats
- Risk of intensified regulations on gas business
- Fierce market competition from spread of renewable energy
- Risk of demand decline due to economic fluctuations
- Intense price competition with major rivals
- Challenges in responding to changes in external energy supply
- Risk of declining competitiveness from delayed technological innovation
- Risk of loss of social trust (impact from cartel issues)
- Risk of infrastructure damage from natural disasters
- Cost increases from fluctuating resource prices
- Challenges in talent acquisition and development
- Strengthening of customers' cost-saving mindset
- Adaptation to business structure changes from legal amendments
Innovations
2024: Opening of Carbon Neutrality Introduction Facility 'CaN-Lab'
- Overview
- Opened a visitor facility within the technical research institute to introduce carbon neutrality technology development.
- Impact
- Contributes to promoting decarbonization technologies and enhancing regional understanding.
2023: Synthetic Methane Demonstration Facility Operational
- Overview
- Started operation of synthetic methane demonstration facility with 15-fold CO2 recovery capacity, advancing diversification of decarbonized energy.
- Impact
- Contributes to expanded use of renewable energy and reduced environmental impact.
2022: Legal Separation of Pipeline Division and Establishment of Toho Gas Network
- Overview
- Legal separation of urban gas pipeline division to advance specialization, efficiency, and regulatory compliance.
- Impact
- Leads to improved transparency in operations and business efficiency.
2024: Start of Demonstration Verification for Hydrogen Supply Infrastructure
- Overview
- Began technical verification of hydrogen supply facilities, aiming to become a key player in future hydrogen society.
- Impact
- Expands possibilities for new energy businesses and reduces environmental impact.
2021: Support for Opening of Smart Town 'Minato Akron'
- Overview
- Supported the grand opening of the smart town redeveloped from the former Minato Akuru factory site in Nagoya's Minato Ward.
- Impact
- Contributes to regional revitalization and improved energy efficiency.
Sustainability
- Promotion of synthetic methane business to reduce CO2 emissions
- Demonstration and dissemination activities for hydrogen supply technology
- Advancement of research and development on carbon neutrality technologies
- Promotion of energy savings through smart towns
- Greening of power sales business
- Enhancing environmental awareness through collaboration with local communities
- Dissemination and awareness of energy-saving appliances
- Ensuring transparency through legal separation of pipeline division
- Strengthening sustainable energy supply framework
- Compliance with environmental regulations and enhanced governance
- Active participation in local environmental conservation activities
- Increasing utilization rate of renewable energy