Stock less attractive; focus on potential profit growth and shareholder returns

Research evidence excerpt

Stock less attractive; focus on potential profit growth and shareholder returns

19 June 2026

Figure 11. Target 1 CO2 emission from the LPG industry: a cut of approximately 50%

Other companies (conventional) model

Approx. 50% reduction (of CO2 emissions/household)

Nicigas model (after the kaunch of YUME NO KIZUNA)

Source: Company material

Figure 12. Target 2: CO2 emission per household; roughly 50% Figure 13. Target 3: Reduction contribution; roughly 1.45m

reduction MT-CO2

Approx. 50% reduction Approx. 1.45m MT-CO2

Electricity Specific measures Other Specific measures

・Highly efficient delivery of LP gas operators ・Highly efficient delivery of LP gas

Gas ・Promoting high-performance gas equipment ・Promoting high-performance gas equipment

NICIGAS ・Electricity plans with virtually zero CO2 emissions

(LP gas or ・Electricity plans with virtually zero CO2 emissions ・Procuring non-fossil electric power sources

city gas） ・Procuring non-fossil electric power sources Without measures With measures ・Promoting solar power generation and storage batteries

FY3/20 FY3/31CE ・Promoting solar power generation and storage batteries FY3/31(single year)

Source: Mizuho Securities Equity Research, based on company materials Source: Mizuho Securities Equity Research, based on company materials

As a concrete measure taken by Nippon Gas, it has started using digital technologies

to conserve resources. The introduction of “Space Hotaru” online gas meters in 2020

eliminated the CO2 emissions from the vehicles driven to check meters, and the

company has also been able to reduce the amount of paper used by switching meter

readings to the "My NiciGas" smartphone app. In the retail electric power business,

Nippon Gas increased the ratio of CO2-free power sources from zero in FY3/21 to