Consolidated Financial Results
for the First half of Fiscal Year Ending March 31, 2021
(Based on IFRS)October 30, 2020
Company name: Nippon Sanso Holdings Corporation
Stock exchange listing: Tokyo (1st section)
TSE Code:4091 URL: https://www.nipponsanso-hd.co.jp/
Representative: Yujiro Ichihara, Representative Director, President CEO
Inquiries:
Takayoshi Umehara, General Manager, Investor Relations
Tel.:+81-3-5788-8512
Scheduled date to file Quarterly Securities Report: November 10, 2020
Scheduled date to commence dividend payments:
December 1, 2020
Supplementary materials on quarterly financial results: Yes
Quarterly results explanatory meeting: Yes (For institutional investors and analysts)(Amounts less than ¥1 million are omitted)

1. Financial results for the first half of FYE2021 (April 1, 2020 – September 30, 2020)(1) Operating resultsCore operating
incomeRevenue(Percentages indicate year-on-year change)
Net income
Total
Net income
attributable tocomprehendowners of the parent
sive income

Operating income(¥ million)%(¥ million)%(¥ million)%(¥ million)%(¥ million)%(¥ million)%

First halfof
FYE2021384,505(9.1)

36,727(19.2)

36,665(21.6)

21,561(24.9)

21,001(24.3)

38,485－First halfof
FYE2020422,88128.4

45,47961.6

46,74961.4

28,72453.4

27,74056.9(8,922) －(Reference) Income before income taxes
First half of FYE2021: ¥30,821 million [(24.5)% ]First half of FYE2020: ¥40,831 million [50.8% ]Core operating income is calculated as operating income excluding certain gains and expenses attributable
to non-recurring factors (non-recurring items).
Basic earnings
per share (Yen)First half of
FYE2021First half of
FYE2020

Diluted net income
per share (Yen)

48.53

－

64.10

－

(2) Financial position
Total assets(¥ million)

Total equity(¥ million)

Equity attributable toowners of the parent(¥ million)

Equity attributable toowners of the parent
ratio (%)

First half of FYE2021(September 30, 2020)

1,774,281

469,973440,495

24.8

FYE2020 (March 31, 2020)

1,751,732

440,693409,344

23.4

2. Dividends
Annual Dividend
End of 1
quarter

st

nd

(Yen)

End of 2
quarter

End of 3rdquarter

Term
end

Total

(Yen)

(Yen)

(Yen)

(Yen)

FYE2020－

14.00

FYE2021－14.00

FYE2021 (est.)

－

14.00

28.00

－

14.00

28.00

Note: No revisions have been made to recently announced forecasts.

3. Forecasts for business operations for FYE2021 full term (April 1, 2020 – March 31, 2021)
Core operating
incomeRevenue

Full term(¥ million)%

830,000(2.4)(¥ million)

82,000%(9.2)

Operating income(¥ million)

82,000%(12.7)(Percentages indicate year-on-year change)
Basic
Net income
Net income
attributable to owners
earningsof the parent
per share(¥ million)

46,000%(¥ million)(16.4)

44,000%(Yen)(17.5)

101.67

Note: No revisions have been made to recently announced forecasts.
(Reference) Income before income taxes
FYE2021 full term: ¥ 67,500million [14.7%]* Notes(1) Changes in significant subsidiaries during the six months ended Sep. 30, 2020: None
(Transfer of specified subsidiaries resulting in changes in the scope of consolidation)(2) Changes in accounting policies, changes in financial forecasts
1. Changes in accounting policies required by IFRS: None
2. Changes in accounting policies other than 1.: None
3. Changes in accounting estimates: None
(3) Number of outstanding shares (common shares)
1. Number of outstanding shares at the end of
the period (including treasury stock)
2. Number of treasury stocks at the end of theperiod
3. Average number of shares during the period(quarterly cumulative)

As ofSep. 30, 2020
As of
Sep. 30, 2020
Six months ended
Sep. 30, 2020

433,092,837
shares
340,665
shares432,753,143
shares

As ofMar. 31, 2020
As ofMar. 31, 2020
Six months ended
Sep. 30, 2019

433,092,837
shares339,139
shares432,756,348
shares* Quarterly financial reports are out of the scope of quarterly review by certified public accountants or audit
corporations.
* Explanation on the appropriate use of the forecasts of financial results and other comments
The forward-looking statements such as the forecasts of financial results stated in this document are based on
the information currently available to the Company and certain assumptions that the Company judges as
rational. The Company is under no obligation to guarantee their achievement. Actual financial results may varysignificantly due to various reasons. For details on the assumptions of the forecasts and related matters, please see
page 6, “(3) Explanation concerning predictive information such as forecasts for business operations” in “1. General
information relating to the first half results.”(Obtaining Details of the Quarterly Financial Results Briefing)
NSHD plans to hold the following briefing for investors.
Thursday, November 12, 2020: Business performance briefing for institutional investors and analysts

Contents
1. General information relating to the first half results ……………………………………………………………4(1) Explanation concerning business results ……………………………………………………………………4(2) Explanation concerning financial position ………………………………………………………………… 5(3) Explanation concerning predictive information such as forecasts for business operations…………………6
2. Condensed consolidated financial statements and main notes……………….………………………………… 7(1) Condensed Consolidated Statement of Financial Position………………………………….……………… 7(2) Condensed Consolidated Statement of Profit or Loss
and Condensed Consolidated Statement of Comprehensive Income …………………………...………… 9(3) Condensed Consolidated Statement of Changes in Equity ……………….……………………………… 11(4) Condensed Consolidated Statement of Cash Flows………….…………………………………………… 12(5) Notes to the Condensed Consolidated Financial Statements …………………………..………………… 14(Note regarding going concern assumption) ……………………………………………………………….…… 14(Segment information) ………………………………………………………………………………………….. 14

1. General information relating to the first half results(1) Explanation concerning business results
General overview
The business environment surrounding the Nippon Sanso Holdings Group (NSHD Group) in the first halfof the fiscal year under review (from April 1, 2020 to September 30, 2020) was as follows. In the firstquarter (from April 1, 2020 to June 30, 2020), the global COVID-19 pandemic caused a drastic economic
downturn and decline in demand in the countries and regions the NSHD Group has entered, andproduction activity in the manufacturing sector rapidly decelerated and became stagnant. From the start ofthe second quarter (from July 1, 2020 to September 30, 2020), certain countries, regions and customers
have started to gradually show signs of recovery. The trend in shipments of air separation gases (oxygen,nitrogen, and argon) has been gradually recovering on a quarterly basis, but these shipments havedecreased sharply in comparison to the previous fiscal year.
Against this backdrop, the NSHD Group achieved the following results for the first half of the fiscal year
under review. Revenue on a consolidated basis decreased 9.1% year on year to ¥384,505 million, core
operating income decreased 19.2% to ¥36,727 million, operating income decreased 21.6% to ¥36,665
million and net income attributable to owners of the parent decreased 24.3% to ¥21,001 million.
Core operating income is calculated as operating income excluding certain gains and expenses attributable
to non-recurring factors (non-recurring items).
A breakdown of business performance by reportable segment is as follows.
Segment income represents core operating income.
① Gas Business in Japan
In the industrial gas-related business, revenue from air separation gases, a core product, decreased
sharply year on year, mainly due to sluggish production activity in relevant industries. Meanwhile, inthe electronics-related field, revenue from electronic materials gases were mostly on a par with theprevious fiscal year. In equipment and installation, revenue rose substantially in the electronics-related
field. However, there was a large year-on-year decline in revenue primarily in welding and cutting
equipment for metal processing
As a result, in the Gas Business in Japan, revenue decreased 9.7% year on year to ¥157,125 million,
while segment income declined 6.8% to ¥11,476 million.
② Gas Business in the United States
In the industrial-gas related business, revenue from air separation gases, a core product, decreased
sharply year on year, primarily for packaged and bulk gases. In the on-site business, revenue declined
year on year due to the impact of lower demand from gas customers. In equipment and installation,
electronics-related revenue increased, but revenue from welding and cutting equipment for metal
processing decreased sharply, due partly to the voluntary suspension of business activities at retailstores in the relevant states.
As a result, in the Gas Business in the United States, revenue decreased 7.8% year on year to ¥91,253
million and segment income decreased 18.0% to ¥9,631 million.
③ Gas Business in Europe
Demand for bulk gas decreased sharply due to stagnation in production activity as a whole in the key
regions Iberia (Spain and Portugal), Germany, and Italy. In the on-site business, demand fellsignificantly due to the impact of a decline in demand from gas customers. In equipment andinstallation, demand decreased substantially, mainly for welding and cutting equipment for metal
processing.
As a result, in the Gas Business in Europe, revenue decreased 12.3% year on year to ¥74,821 million
and segment income decreased 34.6% to ¥8,649million.

4④ Gas Business in Asia & Oceania
In the industrial gas-related business, revenue from air separation gases, a core product, decreased
sharply due to the impact of city lockdowns in countries and regions such as the Philippines andstagnant production activity in the manufacturing sector. In LPG, unit sales prices fell due to lower
contract prices in purchasing, but shipments in Australia were solid. In the electronics-related business,
shipments were favorable for electronic materials gases in East Asia. In equipment and installation,
demand decreased sharply, mainly reflecting a decrease in spot projects in Singapore, as well as theabsence of an installation project in Taiwan, and lower demand for welding and cutting equipment for
metal processing.
As a result, in the Gas Business in Asia & Oceania, revenue decreased 2.6% year on year to ¥50,264
million and segment income increased 5.5% to ¥5,673million.
⑤ Thermos BusinessIn the Thermos Business, revenue from portable mugs, a core product, decreased sharply in Japan, as
revenue was heavily impacted by the loss of sales opportunities associated with the leisure season.
These sales opportunities were lost because of restrictions on going outdoors and the voluntarysuspension of business activities in the first quarter of the fiscal year. Meanwhile, sales volume offrying pans and tumblers increased substantially in connection with the widespread adoption of newlifestyles where consumers spend longer periods of time at home. Overseas, sales volume decreased in
response to the impact of business slowdowns in various regions.
As a result, in the Thermos Business, revenue decreased 15.4% year on year to ¥11,039 million, andsegment income fell 48.9% to ¥2,112million.
(2) Explanation concerning financial position
Total assets amounted to ¥1,774,281 million as of September 30, 2020, an increase of ¥22,548 million
from March 31, 2020. Due to the impact of foreign exchange rates, total assets were stated ¥23.6 billion
higher than they otherwise would have been reported. This mainly reflected foreign exchange rate changes
such as the yen’s appreciation of ¥3.03 against the U.S. dollar and the yen’s depreciation of ¥4.62 against
the euro as of September 30, 2020, compared with the rates as of March 31, 2020.
[Assets]
Total current assets were ¥371,016 million, an increase of ¥3,714 million from March 31, 2020. The mainchanges were an increase in inventories and a decrease in trade receivables.
Total non-current assets were ¥1,403,264 million, an increase of ¥18,834 million from March 31, 2020,
mainly due to increases in goodwill and other financial assets.
[Liabilities]
Total current liabilities were ¥297,802 million, a decrease of ¥34,101 million from March 31, 2020. This
result mainly reflected decreases in bonds and borrowings and trade payables.
Total non-current liabilities were ¥1,006,505 million, an increase of ¥27,370 million from March 31, 2020.
The main contributing factors were increases in bonds and borrowings and deferred tax liabilities.
[Equity]
Total equity amounted to ¥469,973 million, an increase of ¥29,279 million from March 31, 2020. The
main changes were an increase due to the recording of net income attributable to owners of the parent,
retained earnings paid as dividends, and an increase in exchange differences on translation of foreign
operations.
The equity attributable to owners of the parent ratio stood at 24.8%, up 1.4 percentage points from theprevious fiscal year-end.
(Cash flow analysis)(Cash flow from operating activities)
Net cash provided by operating activities amounted to ¥53,928 million. The main components were profit
before income taxes, depreciation and amortization, and increase (decrease) in trade payables.
(Cash flow from investing activities)
Net cash used in investing activities was ¥30,237 million. The main use of cash was for the purchase ofproperty, plant and equipment.

5

(Cash flow from financing activities)
Net cash used in financing activities was ¥21,112 million. Principal factors behind this result included
repayments of long-term borrowings, net increase (decrease) in commercial paper, and proceeds fromlong-term borrowings.
As a result of the Company’s operating, investing and financing activities, the balance of cash and cash
equivalents at end of fiscal year, after accounting for the effects of exchange rates, was ¥104,342 million
as of September 30, 2020.
(3) Explanation concerning predictive information such as forecasts for business operations
The Company has not revised its forecasts for business operations announced on May 12, 2020.

6

2. Condensed consolidated financial statements and main notes(1) Condensed Consolidated Statement of Financial Position(Millions of yen)
As of Mar. 31, 2020

As of Sept. 30, 2020

AssetsCurrent assets:
Cash and cash equivalents

100,005

104,342

Trade receivables

179,243

171,243

Inventories

65,886

71,164

Other financial assets

7,147

7,816

Other current assets

15,02016,181

367,302370,749

Assets held for sale－

267

Total current assets

367,302371,016

Plant, property and equipment:

655,195

657,073

Goodwill

419,290

430,987

Intangible assets

232,077

232,379

Investments accounted for using the equity method

32,06532,039Other financial assets

38,83443,428Retirement benefit asset

1,358

1,370

Other non-current assets

971

1,340

Deferred tax assets
Total non-current assets
Total assets

4,637

4,645

1,384,430
1,751,732

1,403,264
1,774,281

Subtotal

Non-current assets:7

(Millions of yen)
As of Mar. 31, 2020

As of Sept. 30, 2020

Liabilities and equity
Liabilities
Current liabilities:
Trade payables

93,88582,660Bonds and borrowings

154,980

133,588

Income taxes payable

8,331

7,472

Other financial liabilities

51,52547,637375

394

Other current liabilities

22,80526,048

Total current liabilities

331,903297,802

Non-current liabilities:
Bonds and borrowings

807,611

828,976

Other financial liabilities

29,171

29,453Retirement benefit liabilities

12,952

13,462

Allowance

Allowance

3,281

3,392

Other non-current liabilities

20,282

20,356

Deferred tax liabilities

105,835

110,863

Total non-current liabilities

979,135

1,006,505

1,311,038

1,304,307

Share capital

37,34437,344

Capital surplus

56,38756,048Treasury stock

(268)

(271)

Retained earnings

379,322394,134

Other components of equity(63,441)(46,760)

Total equity attributable to owners of parent

409,344

440,495

Non-controlling interests

31,34929,477

Total equity

440,693469,973

1,751,732

1,774,281

Total liabilities
EquityTotal liabilities and equity8(2) Condensed Consolidated Statement of Profit or Loss andCondensed Consolidated Statement of Comprehensive Income(Consolidated Financial Results for the Cumulative Second Quarter)
Condensed Consolidated Statement of Profit or Loss
(Consolidated Financial Results for the Cumulative Second Quarter)

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Other operating income
Other operating expense
Share of profit of investments accounted for using the equity
methodOperating profit
Finance income
Finance costs
Proﬁt before income taxes

Income taxes
Proﬁt

Six months ended
Sept. 30, 2019
422,881(Millions of yen)Six months ended
Sept. 30, 2020
384,505(259,875)(236,602)

163,005

147,902(120,441)(112,522)

4,463

2,120

(1,741)(1,464)

1,463

628

46,74936,665

1,268

743(7,185)(6,587)

40,83130,821(12,107)(9,259)28,724

21,561

27,74021,001

984

560

64.10

48.53

Proﬁt attributable to:
Owners of parent
Non-controlling interests

Earnings per share
Basic earnings per share (Yen)9

Condensed Consolidated Statement of Comprehensive Income(Consolidated Financial Results for the Cumulative Second Quarter)Six months ended
Sept. 30, 2019
Proﬁt

(Millions of yen)Six months ended
Sept. 30, 2020

28,724

21,561(1,342)

3,252

(11)

(18)

8

(32)

(1,345)3,201(34,680)

14,157

Other comprehensive income:Items that will not be reclassified to profit or loss
Financial assets measured at fair value
through other comprehensive income
Remeasurements of defined benefit plans
Share of other comprehensive income of investments accounted
for using the equity method
Total of items that will not be reclassified to profit or loss
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations
Effective portion of net change in fair value of cash flow hedges

(57)

(4)

Share of other comprehensive income of investments accounted
for using the equity method(1,564)(430)

Total of items that may be reclassified subsequently to profit or loss

(36,301)

13,722(37,647)

16,923(8,922)38,485(9,485)562

37,664821

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests10(3) Condensed Consolidated Statement of Changes in Equity
First half of FYE2020 (April 1, 2019 to September 30, 2019)37,344

53,116(261)(Millions of yen)
Retainedearnings
339,393

–
–
–

–
–
–

–
–
–

27,740–27,740

–
–
–
–
–
–

–
0
(3)
4,352
–

(3)
0
–
–
–
–

–
–
(5,627)
–
–
(11)

–
–

–
–

–
–

12
–

Total transactions with owners

–

4,348

(3)

(5,626)

Balance at September 30, 201937,34457,465(264)

361,507

Share capital
Balance at April 1, 2019
Proﬁt
Other comprehensive income
Comprehensive income
Purchase of treasury stock
Disposal of treasury stock
Dividends
Changes in ownership interest in subsidiaries
Business combinations or business divestitures
Transfer from other components ofequity to retained earnings
Change in scope of consolidation
Other changes

CapitalsurplusTreasurystock

Other components of equity
Exchangedifferencesontranslationof foreign
operations

Balance at April 1,
2019
Proﬁt
Other comprehensive
incomeComprehensive
incomeEffective
portionof netchange infair valueof cashflow
hedges(33,440)(39)

Financialassetsmeasured atfair value
through othercomprehensive
incomeRemeasurementsof defined
benefit plans

10,488

–

Total

Total
equityattributableto ownersof parent

Noncontrollinginterests

Total
equity(22,991)

406,602

29,251

435,854

–

–

–

–

–

27,740984

28,724(35,832)(35,832)

(57)
(57)

(1,324)(1,324)(11)(11)(37,225)(37,225)(37,225)(9,485)(421)
562(37,647)(8,922)

Purchase of treasury
stock

–

–

–

–

–

(3)

–

(3)

Disposal of treasury
stock

–

–

–

–

–

0

–

0

Dividends

–

–

–

–

–

5,627

(604)

(6,232)

Changes inownership interest in
subsidiaries

–

–

–

–

–

(3)

(16)

(19)

–

–

–

–

–

4,352

1,165

5,518

–

–

0

11

11

–

–

–

Change in scope of
consolidation

–

–

–

–

–

12

–

12

Other changes

–

–

–

–

–

(259)

(259)

Total transactions
with owners

–

–

0

11

11

(1,269)

285

(984)

(69,272)

(96)

9,163

–

(60,205)

395,847

30,100425,947

Business
combinations orbusiness divestitures
Transfer from othercomponents of equity
to retained earnings

Balance at
September 30, 201911

First half of FYE2021 (April 1, 2020 to September 30, 2020)(Millions of yen)
Share capital
Balance at April 1, 2020

Capital surplus

Treasury stock

Retained earnings

37,34456,387(268)

379,322

Proﬁt
Other comprehensive income
Comprehensive income

–
–

–
–

–
–

21,001–
21,001

Purchase of treasury stock

–

–

(2)

–

Disposal of treasury stock

–

0

0

Dividends–

Changes in ownership interest in subsidiaries

–

(339)

–

Business combinations or business divestitures

–

–

–

–

Transfer from other components ofequity to retained earnings

–

–

–

(18)

Change in scope of consolidation

–

–

–

(110)

Other changes

–

–

–

–

Total transactions with owners

–

(339)

(2)

(6,190)

Balance at September 30, 2020

37,34456,048(271)

394,134–(6,060)–

Other components of equity
Exchangedifferencesontranslationof foreign
operations

Balance at April 1,
2020
Proﬁt
Other comprehensive
incomeComprehensive income

Effective
portionof netchange infair valueof cashflow
hedges(71,170)
19

Financialassetsmeasured atfair value
through othercomprehensive
incomeRemeasurementsof defined
benefit plans

7,709

–

Total

Total
equityattributableto ownersof parent

Noncontrollinginterests

Total
equity(63,441)

409,344

31,349440,693

–

–

–

–

–

21,001560

21,561

13,516
13,516

(7)
(7)

3,172
3,172

(18)
(18)

16,662
16,662

16,662
37,664260
821

16,92338,485Purchase of treasury
stock

–

–

–

–

–

(2)

–

(2)

Disposal of treasury
stock

–

–

–

–

–

0

–

0

Dividends

–

–

–

–

–

(6,060)(407)(6,468)(339)(2,517)(2,856)

Changes inownership interest in
subsidiaries
–

–

–

–

–

–

54

54

–

–

(0)

18

18

–

–

–

Change in scopeof consolidation

–

–

–

–

–

(110)

–

(110)

Other changes

–

–

–

–

–

–

177

177

Total transactions
with owners

–

–

(0)

18

18

(6,513)(2,692)(9,205)(57,653)

11

10,881–(46,760)

440,495

29,477469,973

Business
combinations orbusiness divestitures
Transfer from othercomponents of equity
to retained earnings

Balance at
September 30, 202012

(4) Condensed Consolidated Statement of Cash Flows(Millions of yen)Six months
ended Sep. 30, 2019

Six months
ended Sep. 30, 2020

Profit before income taxes

40,83130,821

Depreciation and amortization

41,51543,022

Cash flow from operating activities

Interest and dividends income

(659)

(480)

Interest expenses

7,145

6,565

Share of (profit) loss of investments accounted for using the equity method(1,463)(628)

Loss (gain) on sales and retirement of property, plant and equipment, andintangible assets(2,047)

29(Increase) decrease in trade receivables

13,5508,859(Increase) decrease in inventories(5,147)(4,445)

Increase (decrease) in trade payables(11,967)(12,050)

(206)

(196)

(Increase) decrease in retirement benefit asset

390

405

2,206

(4,549)Subtotal

84,14967,353

Interest receive

101

93

4,538

1,023

Interest paid

(6,158)(5,705)

Income taxes refund (paid)(12,127)(8,836)

Net cash provided by operating activities

70,50353,928(36,500)(29,026)

Proceeds from sale of property, plant and equipment

2,494

218

Purchase of investment

(291)

(468)

77

5

－

(119)

Increase (decrease) in retirement benefit liabilities
Other

Dividends received

Cash flow from investing activities
Purchase of property, plant and equipment

Proceeds from sales and redemption of investments
Payments for acquisition of subsidiaries
Proceeds from sales of subsidiaries

1,586

－

Other

(611)

(846)

(33,244)(30,237)

Net cash used in investing activities
Cash flow from financing activities
Net increase (decrease) in short-term borrowings(54,365)

2,010

Net increase (decrease) in commercial papers

11,000(10,000)

Proceeds from long-term borrowings

55,75751,564

Repayment of long-term borrowings(27,273)(51,320)

Repayments of lease obligations(4,427)(4,230)(22)(2,704)(5,627)(6,060)

(604)

(407)

1

36

(25,562)(21,112)

Effect of exchange rate changes on cash and cash equivalents(1,981)

1,739

Net increase (decrease) in cash and cash equivalents

9,715

4,318

Balance of cash and cash equivalents at beginning of fiscal year
Increase (decrease) in cash and cash equivalents resulting fromchange of scope of consolidation
Increase in cash and cash equivalents resulting from merger

59,620100,005

41

－

－

19

Balance of cash and cash equivalents at end of fiscal year

69,376104,342

Purchases of investments in subsidiaries not resulting in change in scope of
consolidation
Dividends paid
Dividends paid to non-controlling interests
Other
Net cash used in financing activities13(5) Notes to the Condensed Consolidated Financial Statements(Note regarding going concern assumption)
Not applicable.
(Segment information)
1) Outline of reportable segments
The NSHD Group’s reportable segments are components of the NSHD Group about which separate
financial information is available and which are evaluated regularly by the Board of Directors indeciding how to allocate management resources and in assessing performance. No grouping of operating
segments has been carried out for reporting purposes.
The NSHD Group conducts gas businesses in Japan and overseas, mainly for customers in the steel,chemical and electronics industries, and has built production and sales structures for its main products inJapan, the United States, Europe, and Asia & Oceania. In addition, the NSHD Group conducts the
manufacture and sales business of housewares such as stainless steel vacuum bottles. Therefore, theCompany has established the following five reportable segments: Gas Business in Japan, Gas Businessin the United States, Gas Business in Europe, Gas Business in Asia & Oceania, and Thermos Business.
The principal products and services included in the five reportable segments are shown in the tablebelow.
Reportable segment

Main products and services

Gas Business in Japan
Gas Businessin the United States
Gas Business in Europe
Gas Businessin Asia & Oceania
Thermos Business

Oxygen, nitrogen, argon, carbon dioxide, helium, hydrogen, acetylene, gasrelated equipment, specialty gases (electronic materials gases, pure gases, etc.),
electronics-related equipment and installation, semiconductor manufacturing
equipment, cutting and welding equipment, welding materials, plants andmachinery, liquid petroleum gas (LPG) and related equipment, medical-use
gases (oxygen, nitrous oxide, etc.), medical equipment, stable isotopes
Housewares

The accounting methods adopted for the reported operating segments are the same as the methods
adopted to prepare the consolidated financial statements. Revenue from inter-segment transactions andtransfers is based primarily on prevailing market prices.
2) Figures of revenue and income (loss) by reportable segment
First half, FYE2020 (April 1, 2019 – September 30, 2019)(¥ million)
Reportable segment
Gas
Business in
Japan

Gas
Business in
the UnitedStates

Revenue to externalcustomers

174,015

Revenue from intersegment transactions
and transfers

Adjustments(Note 1)

Amounts on
theConsolidated
Statements ofIncomeGas
Business in
EuropeGas
Business in
Asia &
Oceania

Thermos
Business

98,95385,28351,582

13,046422,881―422,881

4,984

8,021

―

1,362

11

14,379(14,379)―

Total

178,999

106,975

85,283

52,944

13,057437,261(14,379)

422,881

Segment income(Note 2)

12,31911,744

13,218

5,376

4,137

46,796(1,316)45,479

Total

Revenue

Notes:

1. The (¥1,316) million negative adjustment for segment income is comprised of (¥336) million of intersegment eliminations
and companywide expenses of (¥980) million that were not allocated to any particular reportable segment.
These companywide expenses related principally to basic research expenses that were not allocated to a particular reportablesegment.
2. Segment income represents core operating income, which is calculated as operating income excluding certain gains or losses
attributable to non-recurring factors (non-recurring items).

14First half, FYE2021 (April 1, 2020 – September 30, 2020)(¥ million)
Reportable segment
Gas
Business in
Japan

Gas
Business in
the UnitedStates

Revenue to externalcustomers

157,125

Revenue from intersegment transactions
and transfers

Amounts on
theConsolidated
Statements ofIncomeAdjustments(Note 1)Gas
Business in
EuropeGas
Business in
Asia &
Oceania

Thermos
Business

91,25374,82150,264

11,039384,505―

384,505

7,293

8,812

6

1,568

17

17,697(17,697)―

Total

164,418

100,066

74,82851,832

11,057402,203(17,697)

384,505

Segment income(Note 2)

11,476

9,631

8,649

5,673

2,112

37,543(816)

36,727

Total

Revenue

Notes:

1. The (¥816) million negative adjustment for segment income is comprised of (¥123) million of intersegment
eliminations and companywide expenses of (¥692) million that were not allocated to any particular reportablesegment. These companywide expenses related principally to basic research expenses that were not allocatedto a particular reportable segment.
2. Segment income represents core operating income, which is calculated as operating income excluding certain
gains or losses attributable to non-recurring factors (non-recurring items).

Reconciliation of segment income with income before income taxes is shown in the table below.
(¥ million)
First half of FYE2021

First half of FYE2020(April 1, 2019 to September 30, 2019)(April 1, 2020 to September 30, 2020)

Segment income

45,47936,727

Gain on sales of noncurrent assets

2,059

―

Impairment loss

(311)

―

Other
Operating income

(479)

(61)

46,74936,665

Financial revenue

1,268

743

Financial expenses(7,185)(6,587)

40,83130,821

Income before income taxes

15