Value Creation Management

9 OSAKA GAS Our entry strategy into electricity markets 1. IPP Torishima IPP plant 150,000 kW(starts from April 2002) 2. Electricity retailing (Ennet) 3. Н T From April 2001, starting 9 or 10 business, supplying 24,000kW We aim to supply 10% of the total electricity contracts awarded by KEPCO and TEPCO, i.e. 10% of 11 million kW and 24 million kW respectively (= 3.5 million) Onsite generation of electricity ― Promotion of in-house generation + ESCO From January 2001, onsite generation of 9,000 kW at Mycal, Ibaraki From April 2002, at Osaka mothers & children health center Building up a network of existing cogeneration customers (666 cases, 1 million kW) 37

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