May 12, 2020
Taiyo Nippon Sanso Corporation

Consolidated Financial Performancefor Fiscal Year 2020
(Based on IFRS)(Amounts less than ¥1 million are omitted)

1.

Financial Results for the FYE2020 (April 1, 2019 – March 31, 2020)(1) Operating resultsCore operating
incomeRevenue(Percentages indicate year-on-year change)
Net income
Total
attributable to
Net income
comprehensive
owners of theincomeparentOperatingincome(¥ million)%(¥ million)%(¥ million)%(¥ million)%(¥ million)%(¥ million)%

FYE2020

850,239

14.8

90,33737.2

93,921

40.5

55,03825.9

53,34029.2

12,025(59.6)

FYE2019

740,341

14.6

65,8199.6

66,863

11.7

43,709(13.9)

41,291(15.6)

29,745(31.8)(Reference) Income before income taxes FYE2020: ¥79,133 million (27.5%) FYE2019: ¥62,083 million (11.1%)
Core operating income is calculated as operating income excluding certain gains and expenses attributable to nonrecurring factors (non-recurring items).
Return on equity
Income before
attributable toincome taxes toowners of thetotal assets ratio
parent (%)(%)
FYE2020123.26―13.1
4.5
FYE2019
95.42
―
10.4
4.6
(Reference) Share of profit (loss) of associates and joint ventures accounted for using the equity method
FYE2020: ¥3,533 million
FYE2019: ¥3,836 million
Basic earnings
per share (yen)Diluted net income
per share (yen)Core operating
income torevenue ratio (%)
10.6
8.9

(2) Financial position

Total assets(¥ million)

Total equity(¥ million)

Equityattributable toowners of theparent(¥ million)

Equityattributable toowners of theparent ratio (%)

Equityattributable toowners of theparent per share(yen)

FYE2020 (March 31, 2020)

1,751,732

440,693409,34423.4

945.91FYE2019 (March 31, 2019)

1,771,015

435,854406,602

23.0

939.56(3) Consolidated cash flows

FYE2020150,084(62,629)(46,242)

Balance of cash andcash equivalents at
term-end(¥ million)
100,005

FYE2019

98,685(754,969)

664,925

59,620Cash flows fromoperating activities(¥ million)

Cash flows frominvesting activities(¥ million)

1

Cash flows fromfinancing activities(¥ million)

2.

Dividends
Annual Dividend

End of
End of
End ofTerm end
1st quarter 2nd quarter 3rd quarter

Yen

Yen

Yen

FYE2019

―

12.00

―

13.00

25.00

¥ million
10,882FYE2020

―

14.00

―

14.00

28.00

12,121FYE2021 (est.)

―

14.00

―

14.00

28.00

3.

Yen

Yen

Total

Ratio ofdividends toequityTotal amount Payout ratio
attributable toof dividends (consolidated)owners of theparent(consolidated)
%

%

26.2

2.7

22.7

3.0

27.5

Forecasts for Business Operations for FYE2021 Full Term (April 1, 2020 – March 31, 2021)

Core operating
incomeRevenue(¥ million)

Full term

830,000%(¥ million)

%

(2.4)

82,000(9.2)(Percentages indicate year-on-year change)
Net income
Basic earnings
attributable to
Net income
per shareowners of the(yen)parentOperatingincome(¥ million)%

82,000 (12.7)(¥ million)%

46,000 (16.4)(¥ million)%

44,000 (17.5)(Yen)

101.67(Reference) Income before income taxes FYE2021 full term: ¥67,500 million [(14.7%)]*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting from changes inthe scope of consolidation during the period under review): Yes
Excluded: 1 (Company name: Rivoira S.r.l.)(Note) On March 20, 2020, Rivoira S.r.l. underwent an absorption merger with Nippon Gases Italia Holding
S.R.L., a subsidiary of Taiyo Nippon Sanso Corporation, and was dissolved in the merger. As a result, when theabsorption merger became effective, Nippon Gases Italia Holding S.R.L. changed its company name to Rivoria
S.r.l.
(2) Changes in accounting principles, accounting estimates and restatements

a. Changes in accounting policies due to the requirements of IFRS: Yes
b. Changes in accounting policies other than the above: Nonec. Changes in accounting estimates: None
(Note) For details, please refer to page 7, "Change in accounting policy" under "6. Notes to the Consolidated
Financial Statements."(3) Number of issued shares (common share)a. Number of issued shares at end of period (including treasury shares):
As of FYE2020 433,092,837 shares
As of FYE2019 433,092,837 sharesb. Number of treasury shares at end of period:
As of FYE2020 339,139 shares
As of FYE2019 335,852 sharesc. Average number of shares during the period:
FYE 2020
432,755,426 shares
FYE 2019
432,758,655 shares

2

(Reference) Non-consolidated Business Results
Non-consolidated Business Results for FYE2020 full term (April 1, 2019 to March 31, 2020)(1) Non-consolidated business results(Percentages indicate year-on-year change)
OperatingincomeSales(¥ million)

FYE2020
FYE2019%

216,006
214,628

0.6
0.3(¥ million)

Ordinary
income%15,636
16,656(¥ million)

(6.1)
(5.9)

Net income per share

Diluted net income per
share

(Yen)

(Yen)

FYE2020
FYE2019

15,01920,385

Net income%(26.3)(17.8)(¥ million)%

17,066
17,952(4.9)(16.8)

—
—

39.42
41.47

(2) Non-consolidated financial position
Total assets

Total equity

Equity attributable toowners of the parent
ratio

Net assets per share(¥ million)(¥ million)%(¥ million)

FYE2020
FYE2019(Reference) Shareholders’ equity

1,137,024
1,147,490

267,929
264,601

23.6
23.1

618.90611.21FYE2020: ¥267,929 million FYE2019: ¥264,601 million* Financial statements are not subject to audit by a certified public accountant or audit corporation* Explanation concerning the appropriate use of forecasts for business operations and other notable matters
This report contains business forecasts and other forward-looking statements that are based on information currently
available to the Company and certain assumptions judged to be reasonable by management. The Company gives noassurances that business forecasts will be attained. Moreover, actual results may differ materially from business
forecasts due to various factors. For details on the assumptions of the forecasts and related matters, please see page6, “(3) Future Outlook,” in “4. Overview of the Business Results for the Fiscal Year Under Review.”
The Company plans to hold a briefing of results for institutional investors and analysts on Thursday, May 21, 2020.
Results materials handed out at that briefing will be posted on the Company website in a prompt manner following
the briefing.

4.

Overview of Business Results for the Fiscal Year Under Review(1) Overview
The business environment surrounding the Taiyo Nippon Sanso Group (TNSC Group) in the fiscal year
under review (from April 1, 2019 to March 31, 2020) felt the impact of factors such as trade friction between
China and the United States, while in Japan manufacturing activities weakened mainly in related industries.
In the electronics-related field, shipments of electronic materials gases in Japan remained on a par with theprevious fiscal year, but performance decreased overseas. In the United States, meanwhile, there is a soundbase in the manufacturing sector and shipments of separate gases (oxygen, nitrogen and argon) were on a parwith the previous fiscal year.
However, the impact of the COVID-19 pandemic on a global scale showed in the Gas Business in Europe
and Thermos Business from the latter half of the fourth quarter of the fiscal year under review.
Against this backdrop, the TNSC Group achieved the following results for the fiscal year under review.
Revenue on a consolidated basis increased 14.8% year on year to ¥850,239 million, core operating income
rose 37.2% to ¥90,337 million, operating income increased 40.5% to ¥93,921 million, and net income
attributable to owners of the parent increased 29.2% to ¥53,340 million.
Core operating income is calculated as operating income excluding certain gains and expenses attributable tonon-recurring factors (non-recurring items).

3(2) Overview of business performance by reportable segment
A breakdown of business performance by reportable segment is as follows.
Segment income represents core operating income.
Gas Business in Japan
In the industrial gas-related business, revenue from air separation gases, a core product, decreased year on
year for use primarily in the key industries of steel, non-ferrous metals, metal processing, transportationequipment and chemicals. In the electronics related field, revenue from electronic materials gases was mostly
on par with the previous fiscal year. In equipment and installation, there was a contribution to earnings fromthe medical equipment sales company, IMI Co., Ltd., acquired in October 2018.
As a result, in the Gas Business in Japan, revenue decreased 2.1% year on year to ¥356,145 million, while
segment income decreased 3.6% to ¥28,737 million.
Gas Business in the United States
In the industrial-gas related business, revenue mainly from bulk gas increased following a steady
performance in the manufacturing sector. In the on-site business, the start of operation at new projects for achemicals manufacturer and other customers contributed to revenue. In addition, revenue rose partly due to acontribution from the HyCO* business acquired in February 2019. In the electronics-related field, revenue
from equipment and installation decreased.
As a result, in the Gas Business in the United States, revenue increased 6.2% year on year to ¥198,869
million, and segment income rose 42.4% to ¥22,263 million.
* HyCO stands for hydrogen (H2) and carbon monoxide (CO), which are separated from natural and othergases through a technology called Steam Methane Reforming (SMR). The HyCO business provides largescale supply of H2 and CO to oil refining and petrochemical industries through a pipeline.
Gas Business in Europe
Revenue increased year on year mainly in bulk gas in Germany, the Benelux countries and northern Europe,
despite a decrease in Spain in the on-site business. Revenue decreased year on year in Spain and Italy inMarch due to the spread of COVID-19.
As a result, in the Gas Business in Europe, revenue was ¥165,564 million and segment income was ¥24,854
million. The European business acquired from Praxair, Inc. of the United States in December 2018, has beenpresented in this segment from the third quarter of the previous fiscal year.
Gas Business in Asia & Oceania
In the industrial gas-related business, revenue from bulk gas decreased mainly due to decreases in China andreduced revenue in the Philippines and Thailand. In Australia, sales of LPG were solid. In the electronicsrelated business, revenue increased due to a significant increase in equipment and installation despite adecrease year on year in shipments of electronic materials gases.
As a result, in the Gas Business in Asia & Oceania, revenue decreased 1.5% year on year to ¥104,541
million, while segment income increased 8.8% to ¥9,952 million.
Thermos Businesses
In the Thermos Business, revenue decreased year on year due to sluggish sales of the mainstay sports-use
vacuum bottles and heat-retaining lunch boxes in Japan because of unseasonable weather with a prolonged
rainy season and a warm winter, and despite the contribution to revenue made by frying pans, a new productlaunched in the previous fiscal year. Overseas, shipments decreased year on year due to the impact of such
issues as worsening relations between Japan and South Korea, demonstrations in Hong Kong and businessslowdown due to U.S.-China trade friction. In addition, as well as halting operations at overseas production
plants in the latter half of the fourth quarter of the fiscal year under review due to the COVID-19 pandemic,
inbound tourism demand contracted in Japan and sales volumes declined.
As a result, in the Thermos Business, revenue decreased 9.6% year on year to ¥25,118 million, and segment
income fell 21.4% to ¥7,224 million.

4(3) Future Outlook
The consolidated earnings forecast for the fiscal year ending March 31, 2021 is as per the table below. The
outlook going forward is a worsening of the global economy due to the COVID-19 pandemic with theassumption being that current conditions will continue in the first quarter of the fiscal year ending March 31,
2021, incremental recovery will move ahead in the second quarter and business will essentially return tonormal from the third quarter onward. This earnings forecast is being made at a time when the timing of
convergence of risks arising from the spread of COVID-19 remains unknown, and projections include therisk of reduced revenue and the like, based on current circumstances, but there is a possibility that thesituation regarding the spread of the virus changes significantly. In the event of a revision becoming
necessary, the Company will disclose such information promptly. The assumed exchange rates for theearnings forecast for the U.S. dollar and euro are US$1 = ¥108 and €1 = ¥120, respectively.
When calculating for the earnings forecast, the main reasons for change are assumed as follows forcomparison with the fiscal year ended March 31, 2020.
・ Revenue in industrial gas and hard goods is expected to fall by approximately 15% year on year in the firstquarter of the fiscal year ending March 31, 2021, decrease by approximately 10% year on year in thesecond quarter, and be on a par with the previous year from the third quarter onward, with the impact oncore operating income calculated by taking into consideration the profit margin in each region.
・ Currently, there has not been a significant impact on operations by customers in the electronics-related
business, so there is expected to be favorable growth due to higher revenue in Japan and other markets asinitially forecast.
・ In the Thermos Business, the COVID-19 pandemic is expected to have an impact on results, focusing on
the first quarter of the fiscal year ending March 31, 2021, mainly in Japan, China and South Korea.

Operating income

830.0

82.0

82.0

46.0

44.0

850.2

90.3

93.9

55.0

53.3

(2.4)

(9.2)

(12.7)(16.4)(17.5)

Revenue
FYE2021(¥ billion)
FYE2020(¥ billion)
Change (%)

Net income
attributable toowners of theparentCore operating
incomeNet income【Calculating for the earnings forecast in FYE2021(￥billion)】
92

90

88

86

90.3

▲ 9.7

84

82

▲ 0.9

＋2.0

＋0.3

82.0
80
FYE2020

the industrial gas and hard the electronics-related
goods businessbusiness5

the Thermos business

OthersFYE2021（est.)

(4) Basic Policy on Profit Distribution and Dividends for FYE2020 and FYE2021
The Company’s basic policy is to continuously maintain a stable dividend, while remaining mindful of theneed to retain internal reserve to enhance and strengthen the business structure. The Company will strive toreturn profits to shareholders through a dividend policy linked to consolidated business performance.
In accordance with this policy, the Company plans to set the year-end dividend for the fiscal year underreview at ¥14 per share. Therefore, the Company plans to pay an annual dividend of ¥28 per share, including
an interim dividend of ¥14 per share. For the fiscal year ending March 31, 2021, the Company plans to pay
an annual dividend of ¥28 per share, including an interim dividend of ¥14 per share.

5. Basic Policy on the Selection of Accounting Standards
From the fiscal year ended March 31, 2017, the TNSC Group has adopted International Financial ReportingStandards (IFRS) primarily for the purpose of improving the international comparability of financial statements inthe capital markets and to unify accounting procedures within the TNSC Group.

6.

Notes to the Consolidated Financial Statements(Note regarding going concern assumption)
Not applicable.
(Change in accounting policy)
The main accounting standards and interpretations applied by the TNSC Group from the first quarter of the fiscal
year under review are as follows:Standards and interpretations

Outline of new standards or revisions

IFRS 16 sets forth revisions to accounting procedures and disclosure
methods for the treatment of leases.
Under a single lessee accounting model and for all leases with a term
IFRS 16
Leasesof more than 12 months undertaken as lessee, IFRS 16 primarily requires
lessees, in principle, to reflect in the financial statements their assets
representing their right to use leased assets and liabilities representing
their obligations to make lease payments.
As a result of the application of IFRS 16, the carrying amount of the TNSC Group’s lease-related assets increasedby ¥34.1 billion and lease liabilities simultaneously increased by ¥34.6 billion on the date of initial application ofthis standard. Furthermore, right-of-use assets become property, plant and equipment and lease liabilities are
displayed in other financial liabilities (non-current and current)
Upon applying IFRS 16, the TNSC Group has adopted the method where the cumulative effect of applying thisstandard is recognized at the date of initial application, which is allowed as a transitional measure. There was no
cumulative effect at the date of initial application of this standard.
(Segment information)(1) Outline of reportable segments
The TNSC Group conducts gas businesses in Japan and overseas, mainly for customers in the steel, chemical, andelectronics industries, and has built production and sales structures for its main products in Japan, the UnitedStates, Europe, and Asia & Oceania. In addition, the TNSC Group conducts the manufacture and sales business ofhousewares such as stainless steel vacuum bottles. Therefore, the Company has established the following fivereportable segments: Gas Business in Japan, Gas Business in the United States, Gas Business in Europe, Gas
Business in Asia & Oceania, and Thermos Business.
The principal products and services included in the four segments are shown in the table below.
Business segment
Gas Business in Japan
Gas Business in the
United States
Gas Business in Europe
Gas Business in Asia &Oceania
Thermos Business

Main products and services
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

6

The accounting methods adopted for the reported operating segments are the same as the methods adopted toprepare the consolidated financial statements for the preceding fiscal year. Revenue from inter-segment
transactions and transfers is based primarily on prevailing market prices.
(2) Figures of revenue and income (loss) by reportable segment
FYE2019 (April 1, 2018 – March 31, 2019)(¥ million)
Business segment
Adjustments(Note 1)

Amounts on
theConsolidated
Statements ofIncome740,341―

740,341

37

26,454(26,454)―

109,977

27,837766,795(26,454)740,341

6,567

9,149

9,189

70,350(4,531)65,81921,710

8,855

6,257

1,090

55,992

118

56,111

―

―

1,340

―

1,438

―

1,438

Gas
Business
in Japan

Gas
Businessin theUnitedStates

Revenue toexternal customers

363,951

Revenue frominter-segment
transactions andtransfers

Gas
Businessin Europe

Gas
Business
in Asia &Oceania

Thermos
Business

187,323

55,101

106,164

27,8008,177

14,426―

3,813

372,129

201,749

55,10129,80815,634

Depreciation andamortization

18,077

Impairment loss

97

Total

Revenue

Total
Segment income(Note 2)Other items

Share of profit(loss) of
associates andjoint ventures
52
(121)
(6)
(10)
3,923
3,835
0
accounted forusing the equity
methodNotes:
1. The ¥4,531 million negative adjustment for segment income is comprised of ¥237 million of intersegment
eliminations and companywide expenses of ¥1,598 million that were not allocated to any particular reportablesegment, as well as the expenses of ¥2,695 million to acquire the European business. These companywide expenses
related principally to basic research expenses that were not allocated to a particular reportable segment.
2. Segment income represents core operating income, which is calculated as operating income excluding certain gains orlosses attributable to non-recurring factors (non-recurring items).

7

3,836

FYE2020 (April 1, 2019 – March 31, 2020)(¥ million)
Business segment
Adjustments(Note 1)

Amounts on
theConsolidated
Statements ofIncome850,239―

850,23924

31,032(31,032)―

107,629

25,143881,272(31,032)

850,239

24,854

9,952

7,224

93,032(2,695)90,33728,74927,732

6,732

1,226

83,365433

83,798

―

―

―

―

38

―

38

Gas
Business
in Japan

Gas
Businessin theUnitedStatesGas
Businessin Europe

Gas
Business
in Asia &Oceania

Thermos
Business

Revenue toexternal customers

356,145

198,869

165,564

104,541

25,118

Revenue frominter-segment
transactions andtransfers

10,272

17,480166

3,088

366,418

216,350

165,731

28,73722,263

Depreciation andamortization

18,924

Impairment loss

38

Total

Revenue

Total
Segment income(Note 2)Other items

Share of profit(loss) of
associates andjoint ventures
280
(123)
(23)
63
3,372
3,569
(0)
accounted forusing the equity
methodNotes:
1. The ¥2,695 million negative adjustment for segment income is comprised of ¥853 million of intersegment eliminations
and companywide expenses of ¥1,841 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 orlosses attributable to non-recurring factors (non-recurring items).

Reconciliation of segment income with income before income taxes is shown in the table below.
FYE2019

FYE2020(April 1, 2018 to March 31, 2019)(April 1, 2019 to March 31, 2020)

Segment income

65,81990,337

Gain on sales of noncurrent assets
Share of profit (loss) of associates
and joint ventures accounted forusing the equity method
Impairment loss

1,336

6,490

―

(35)

(20)

(1910)

Other

(272)

(960)

66,86393,921

2,294

1,150

(7,074)(15,938)

62,083

79,133Operating income
Financial revenue
Financial expenses
Income before income taxes

8

3,569

Per-Share Information
Basic earnings per share and the basis for share appraisal are as follows.
FYE2019

FYE2020(April 1, 2018 to March 31, 2019)(April 1, 2019 to March 31, 2020)

Net income attributable to owners of
the parent company (¥ million)

41,291

53,340

Average number of shares (thousand
shares)432,758

432,755

Weighted average number of shares (¥)
95.42
Note: Diluted earnings per share are not listed as there are no dilutive shares.

123.26

Important subsequent events
Not applicable.

9