February 3, 2015
Taiyo Nippon Sanso Corporation

Consolidated Financial Performancefor the First Three Quarters of Fiscal Year 2015
(Based on Japan GAAP)
1. Financial results for the first three quarters of FY2015 (April 1, 2014 – December 31, 2014)(1) Operating results(Amounts less than ¥1 million are omitted)
Net sales(¥ million)

Operating income

YoY
ChangeYoYChange(¥ million)

First threequarters of406,687
6.9% 26,062
17.1%
FY2015First threequarters of380,418
10.8% 22,262
16.7%
FY2014
Note: Comprehensive income
First three quarters of FY2015: ¥30,402 million [(18.0)% ]First three quarters of FY2014: ¥37,081 million [ - %]First three quarters of FY2015
First three quarters of FY2014

Ordinary income

Net income(¥ million)

YoYChange(¥ million)

YoY
Change26,74721.2%

15,642(5.9)%

22,07622.1%

16,628－Earnings per share (Yen)
36.14
41.43

Diluted earnings per share (Yen)-(2) Financial position
Total assets(¥ million)
First three quarters of FY2015(December 31, 2014)
FY2014 (March 31, 2014)

Net assets(¥ million)

Equity ratio (%)

741,690319,670

39.8731,677

298,475

37.5

Note: Equity
As of December 31, 2014:
As of March 31, 2014:¥295,545 million¥274,307 million

2. Dividends
Annual Dividendstnd

End of 1 quarter End of 2 quarter
Yen
Yen
6.00
6.00

End of 3rd quarter
Yen-FY2014
FY2015FY2015(est.)
Note: No revisions have been made to recently announced forecasts.

Term end
Yen
6.00

Total
Yen
12.00

6.00

12.00

3. Forecasts for business operations for FY2015(full year; April 1, 2014 – March 31, 2015)
OperatingNet sales
Ordinary incomeincome(¥ million)

YoYChange(¥ million)

YoY
Change(¥ million)

YoY
ChangeFY2015550,000 5.2% 35,000 11.1% 33,200
8.7%(full term)
Note: No revisions have been made to recently announced forecasts.

Net income(¥ million)

YoY
Change20,000(1.0)%

Earnings
per share(Yen)

46.21

4. General information relating to the first three quarter results
Overall business performance (consolidated basis)
Looking at the global economy during the first three quarters of the fiscal year under review (April 1,2014 – December 31, 2014), the U.S. economy showed a steady recovery, although economic growthslowed in Europe and the Asian region. The Japanese economy continued on a gradual recovery path,despite an uncertain outlook due to factors such as rising prices for raw materials associated with theweaker yen.
Against this backdrop, net sales for the first three quarters on a consolidated basis increased 6.9%
year on year to ¥406,687 million, operating income rose 17.1% to ¥26,062 million, and ordinary income
increased 21.2% to ¥26,747 million. Net income for the first three quarters decreased 5.9% to¥15,642
million.
A breakdown of business performance by reportable segment is shown below.
From the first quarter of the fiscal year under review, the Company changed its reportable segments.
Therefore, to facilitate the year-on-year comparisons shown below, the figures for the first three quartersof the preceding fiscal year are reclassified to reflect the changes to the reportable segments.
(1) Gas Business in Japan
Sales of air separation gases (oxygen, nitrogen and argon), a core product, rose year on year, with sales
remaining firm primarily to the steel industry, a key industry for this business. However, there waslower demand for these gases from the chemicals industry. In addition, sales of gas equipment andwelding and cutting equipment increased steadily due to an upturn in capital investment demand.
Sales of electronic materials gases increased year on year due to healthy shipments in the fields ofliquid crystal panels, solar batteries, and semiconductors.
In the medical field, despite a slight decrease in shipping volume and sales of medical-use oxygen,higher sales of stable isotopes and sales at Pacific Medico Co., Ltd., which was acquired in fiscal year
2014, contributed to a substantial sales increase in this segment.
As a result of a downturn in the import price of liquid petroleum gas (LPG), sales of LPG decreasedslightly year on year.
As a result, in the Gas Business in Japan, net sales increased 1.8% year on year to ¥250,698 million
and operating income rose 9.5% to ¥17,981 million.
(2) Gas Business in the United States
Against a backdrop of economic recovery, the positive effects of the acquisition of Continental CarbonicProducts, Inc. in February 2014, an increase in the yen translation amount of sales due to foreignexchange effects, and an increase in the price of industrial gases contributed to a large year-on-yearincrease in sales.
As a result, in the Gas Business in the United States, net sales increased 19.8% year on year to¥95,310 million, and operating income rose by 29.4% to ¥3,598 million.
(3) Gas Business in Asia
In China, despite sluggish sales in the northeast region, sales were strong overall, centered on nitrogenin the east region. In Taiwan, China, and South Korea, sales of electronic materials gases and equipment
were favorable.
As a result of the above, in the Gas Business in Asia, net sales increased 10.6% year on year to¥44,417 million, and operating income rose by 32.6% to ¥2,445 million.

(4) Other Businesses
In the Thermos Business, sales remained strong, particularly of new products. Our subsidiary in SouthKorea, which came within the scope of consolidation in fiscal year 2014, also performed well, and sales
increased substantially year on year.
As a result, in Other Businesses, net sales increased 13.5% year on year to ¥16,261 million, andoperating income climbed by 37.8% to ¥3,137 million.
5. Segment information(1) Figures of sales, earnings or losses, by reportable segment
First Three Quarters, FY2014 (April 1, 2013 to December 31, 2013)(¥ million)
Gas
Businessin Japan

Reportable segment
Gas
Gas
OtherBusinessBusiness Businesses
in thein Asia
UnitedStates

Total

Adjustments(Note)

Amounts on
theConsolidated
Statementsof IncomeSales(1) Sales to
246,386
79,554 40,152
14,325 380,418
380,418－
externalcustomers(2) Sales frominter-segment
3,535
2,781563
530
7,410(7,410)－transactions
and transfers
Total
249,922
82,335 40,716
14,855 387,829(7,410)380,418
Segment
earnings
16,427
2,781
1,843
2,277
23,330(1,067)22,262[Operatingincome]Note:
The ¥1,067 million negative adjustment for segment earnings is comprised of ¥140 million ofintersegment eliminations and companywide expenses of ¥1,207 million that were not allocated to any
particular reportable segment. These companywide expenses related principally to basic researchexpenses that were not allocated to a particular reportable segment.
First Three Quarters, FY2015 (April 1, 2014 to December 31, 2014)(¥ million)
Gas
Businessin JapanSales(1) Sales toexternalcustomers(2) Sales frominter-segment
transactions
and transfers
TotalSegment
earnings[Operatingincome]

Reportable segment
Gas
Gas
Other
Business in Business Businesses
the Unitedin Asia
States

Total

Adjustments(Note)

Amounts on
theConsolidated
Statementsof Income250,698

95,31044,417

16,261

406,687－406,687

3,567

4,923

809

480

9,780

(9,780)－254,265

100,234

45,226

16,741

416,468(9,780)406,687

17,981

3,598

2,445

3,137

27,162(1,099)26,062

Note:The ¥1,099 million negative adjustment for segment earnings is comprised of ¥50 million ofintersegment eliminations and companywide expenses of ¥1,150 million that were not allocated to any
particular reportable segment. These companywide expenses related principally to basic researchexpenses that were not allocated to a particular reportable segment.
(2) Changes to reportable segments
In order to implement management’s strategic policies as described in the Company’s medium-termbusiness plan “Ortus Stage 1” formulated on May 13, 2014, the Company has decided to makeorganizational changes for the purpose of “improving revenues and profits from domestic businesses
facing low growth rates” and “focusing its management resources on growth opportunities overseas.” Inline with this decision, from the first quarter of the fiscal year under review, the Company has changed
its reportable segments.
Therefore, to facilitate the year-on-year comparisons, the figures for the first three quarters of thepreceding fiscal year are reclassified based on the changes to the reportable segments.