October 31, 2014
Taiyo Nippon Sanso Corporation

Consolidated Financial Performancefor the First Half of Fiscal Year 2015
(Based on Japan GAAP)
1. Financial results for the first half (April 1, 2014 - September 30, 2014)(1) Operating results(Amounts less than ¥1 million are omitted)
Net sales(¥ million)

Operating income

YoYChange(¥ million)

First half ofFY2015
268,911
7.7% 16,438
First half ofFY2014
249,621
9.4% 14,396
Note: Comprehensive income
First half of FY2015: ¥9,409 million [(68.8)% ]First half of FY2014: ¥30,112 million [ - %]Ordinary income

YoYChange(¥ million)

YoYChange(¥ million)

YoY
Change14.2%

16,564

16.7%

9,910

(19.0)%

14.6%

14,19917.9%12,229－Earnings per share (Yen)
22.90
31.53

First half of FY2015
First half of FY2014

Net income

Diluted earnings per share (Yen)-(2) Financial position
Total assets(¥ million)
702,110
731,677

First half of FY2015
FY2014

Net assets(¥ million)
300,998
298,475

Equity ratio (%)
39.6
37.5

Notes: Equity
First half of FY2015:
FY2014 full year:¥278,123 million¥274,307 million

2. Dividends
Annual Dividend
stEnd of 1 quarter
Yen-ndEnd of 2 quarter
Yen
6.00
6.00

End of 3rd quarter
Yen-

Term end
Yen
6.00

Total
Yen
12.00

-6.00

12.00

FY2014FY2015FY2015(est.)
Note: No revisions have been made to recently announced forecasts.

3. Forecasts for business operations for FY2015(full year; April 1, 2014 – March 31, 2015)
Operating
Net sales
income(¥ million)

YoY
Change(¥ million)

YoY
ChangeOrdinaryincome(¥ 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 half results
Overall business performance (consolidated basis)
Looking at the global economy during the first half (April 1, 2014 to September 30, 2014) of the fiscal
year under review, the U.S. and the European economies continued on a recovery path, althougheconomic growth slowed in emerging markets, including the Asian region. The Japanese economy
staged a gradual recovery, supported by the positive effects of various economic policies, despite an
uncertain outlook due to factors such as rising prices for raw materials associated with the weaker yen.
Against this backdrop, first-half net sales on a consolidated basis increased 7.7% year on year to¥268,911 million, operating income rose 14.2% to ¥16,438 million, and ordinary income increased
16.7% to ¥16,564 million. Net income for the first half decreased 19.0% to¥9,910 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 half of thepreceding fiscal year are reclassified to reflect the changes to the reportable segments.
(1) Gas Business in JapanThe segment recorded solid sales of oxygen and nitrogen to the steel industry, a key industry for thisbusiness, with sales increasing year on year. Sales of gas equipment rose slightly due to a modest upturnin capital investment demand, while sales of plants edged down.
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 October
2013, contributed to a substantial sales increase in this segment.
The import price of liquid petroleum gas (LPG) was high and sales of LPG increased year on year.
As a result, in the Gas Business in Japan, net sales increased 2.9% year on year to ¥165,569 million
and operating income rose 9.1% to ¥11,209 million.
(2) Gas Business in the United States
Against a backdrop of moderate economic recovery, the positive effects of the acquisition of Continental
Carbonic Products, Inc. in February 2014, an increase in the yen translation amount of sales due toforeign exchange effects, and an increase in the price of industrial gases contributed to a large
year-on-year increase in sales.
As a result, in the Gas Business in the United States, net sales increased 17.6% to ¥62,641 million
and operating income rose 27.0% to ¥2,721 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. In Singapore and Malaysia, demand was weak for oxygen and nitrogen, but shipmentsof safety goods and hard goods were strong. In Vietnam, the segment grew sales by steadily capturing
new demand.
As a result of the above, in the Gas Business in Asia, net sales increased 17.0% to ¥30,351 million,and operating income rose by 35.9% to ¥1,585 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 2013, also performed well, and sales increased
substantially year on year.
As a result, in Other Businesses, net sales increased 8.5% year on year to ¥10,348 million, andoperating income climbed by 25.0% to ¥1,773 million.
5. Segment information(1) Figures of sales, earnings or losses, by reportable segment
First Half, FY2014 (April 1, 2013 to September 30, 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 to160,845
53,286 25,951
9,538 249,621
249,621－
externalcustomers(2) Sales frominter-segment
1,520
1,933
434357
4,245(4,245)－transactions
and transfers
Total
162,366
55,219 26,385
9,895 253,867
249,621(4,245)
Segment
earnings
10,271
2,143
1,166
1,418
14,999(603)
14,396[Operatingincome]Note:
The ¥603 million negative adjustment for segment earnings is comprised of ¥243 million ofintersegment eliminations and companywide expenses of ¥846 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 Half, FY2015 (April 1, 2014 to September 30, 2014)(¥ million)
GasBusinessin 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 Income

165,569

62,64130,351

10,348

268,911－

268,911

2,730

3,487

611

352

7,183

(7,183)－

168,300

66,12930,963

10,701

276,094

268,911

11,209

2,721

1,585

1,773

17,290(7,183)(851)

16,438

Note:The ¥851 million negative adjustment for segment earnings is comprised of ¥68 million of intersegment
eliminations and companywide expenses of ¥782 million that were not allocated to any particular
reportable segment. These companywide expenses related principally to basic research expenses thatwere 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 half of the preceding
fiscal year are reclassified based on the changes to the reportable segments.