Value Creation Management

OSAKA GAS Tariff policy Details of tariff revisions H T 02/99 Osaka Gas reduced tariffs by 3.61% on average 12/99 Tokyo Gas Co., Ltd. reduced tariffs by 2.00% on average 10/00 Kansai Electric Power reduced tariffs by 4.20% on average 02/01 Tokyo Gas Co., Ltd. reduced tariffs by 3.02% on average Our evaluation of current tariff levels H Influence of tariffs is slight in the areas of switch to all-electric households and industrial use Leading to an intensification of competition in air conditioning/ cogeneration business for commercial use Our thinking on future tariff revision, and its influence on income and expenditure H We will examine the situation once our goals for the year ending March 03 have been achieved We have not incorporated future tariff revisions in our current financial estimates (A 1% decrease in tariff is equivalent to a sales decrease of around ¥6 billion a year.) 11

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