July 30, 2014
Taiyo Nippon Sanso Corporation

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

Operating income

YoYChange(¥ million)

First quarter ofFY2015
132,3107.5%
8,483First quarter ofFY2014
123,130
9.6%
7,373
Note: Comprehensive income
First quarter of FY2015: ¥3,867 million [(77.5)% ]First quarter of FY2014: ¥17,160 million [208.6%]

First quarter of FY2015
First quarter of FY2014

Ordinary income

Net income

YoYChange(¥ million)

YoYChange(¥ million)

YoY
Change

15.1%

8,939

17.1%

5,436

21.0%

19.0%

7,633

30.8%

4,492

46.8%

Earnings per share (Yen)
12.56
11.58

Diluted earnings per share (Yen)-(2) Financial position
First quarter of FY2015
FY2014
Notes: Equity
First quarter of FY2015:
FY2014 full year:

Total assets
721,299731,677

Net assets
297,597
298,475

Equity ratio (%)
38.0
37.5

¥273,765 million¥274,307 million

2. Forecasts for business operations for FY2015(full term; April 1, 2014 – March 31, 2015)
OperatingNet salesincome(¥ million)

YoYChange(¥ million)

YoYChangeOrdinary income(¥ million)

YoY
ChangeFY2015
271,000 8.6% 16,800 16.7% 15,800 11.3%(first half)
FY2015550,000 5.2% 35,000 11.1% 33,2008.7%(full term)
Note: No revisions have been made to recently announced forecasts.

Net income

Earnings
per share(¥ million)

YoY
Change9,800(19.9)%

22.64

20,000(1.0)%

46.20(Yen)3. General information relating to the first quarter results
Overall business performance (consolidated basis)
In the global economy in the first quarter of the fiscal year under review (from April 1, 2014, to June 30,2014), on the one hand the United States sustained its moderate economic recovery and the European
economy also began to recover from its recession, but on the other hand, the economic slowdown inemerging markets, including in Asia, continued. The outlook for the Japanese economy remained
uncertain, even though the impact from the hike in the consumption tax rate proved to be limited.
Against this backdrop, first quarter net sales on a consolidated basis increased 7.5% year on year to¥132,310 million, operating income rose 15.1% to ¥8,483 million, and ordinary income increased
17.1% to ¥8,939 million. Net income for the quarter climbed 21.0% to ¥5,436 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 quarter of thepreceding fiscal year are reclassified to reflect the changes to the reportable segments.
(1) Gas Business in Japan
Sales of oxygen and nitrogen were steady to the steel industry, a key industry for this business,increased year on year. However sales of equipment and plants dropped significantly due to continued
sluggish 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 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 2.6% year on year to ¥80,430 million,
but operating income decreased 3.1% to ¥5,402 million, mainly due to a rise in costs following an
increase in electricity charges.
(2) Gas Business in the United States
Against a backdrop of moderate economic recovery in the US, demand, especially for packaged gas andhard goods, increased and sales were strong. Also, the positive effects of the acquisition of Continental
Carbonic Products, Inc. in February 2014 contributed to significant sales increase year on year.
As a result, in the Gas Business in the US, net sales increased 17.7% year on year to ¥31,480 million,and operating income rose by 27.7% to ¥1,387 million.
(3) Gas Business in Asia
In China, despite sluggish sales in the northeast region, sales were strong overall, with brisk sales ofoxygen, nitrogen, and other gases in the east region. In Taiwan, as a result of a higher operating rate in
the electronics-related industry, sales of electronic materials gases and equipment were favorable. InSingapore and Malaysia, demand was weak for oxygen and nitrogen, but shipments of safety tools werestrong, while sales increased in Vietnam as the Company was able to steadily capture new demand.
As a result of the above, in the Gas Business in Asia, net sales increased 14.4% year on year to¥14,584 million, and operating income rose by 68.6% to ¥769 million.
(4) OtherIn the Thermos Business, despite concerns of consumer reaction to the consumption tax increase inJapan, sales remained strong, particularly of new products. Our subsidiary in South Korea, which camewithin the scope of consolidation in 2013, also performed well, and sales increased substantially year onyear.
As a result, in Other businesses, net sales increased 11.5% year on year to ¥5,815 million, andoperating income climbed by 28.9% to ¥1,278 million.

4. Segment information(1) Summary of reportable segments
The Company’s reportable segments are those units of the Company for which discrete financial
information is available and for which the Board of Directors regularly conducts a review for thepurpose of making decisions about resources to be allocated to the segments and evaluate the segments’performance.
The Company conducts gas businesses in Japan and overseas, mainly for customers in the steel,chemical, and electronics industries, and it has built production and sales structures for its main products
in Japan, the United States, and Asia. Therefore, the Company has established the following four
reportable segments: Gas Business in Japan, Gas Business in the US, Gas Business in Asia, and Other.
Other businesses mainly include the Thermos Business, which primarily manufactures and sells
household items.
As described in “(3) Changes to reportable segments,” the reportable segments have changed fromthe first quarter of the fiscal year under review.
(2) Figures of sales, earnings or losses, by reportable segment
First Quarter, FY2014 (April 1, 2013 to June 30, 2013)(¥ million)
GasBusinessin JapanSales(1) Sales toexternalcustomers(2) Sales frominter-segment
transactions
and transfers
Total

Reportable segment
GasGasOtherBusinessBusinessin the US
in Asia

TotalAdjustments(Note)

Amounts on
theConsolidated
Statementsof Income78,42326,75012,743

5,213

123,130－

123,130

864

859

227

171

2,122

(2,122)－

79,287

27,6095,385

125,253(2,122)

123,130

12,970
456

5,573
1,086
992
8,109
7,373
(735)
Segment
earnings[Operatingincome]Note:
The ¥735 million negative adjustment for segment earnings is comprised of ¥264 million of intersegment eliminations and companywide expenses of ¥470 million that were not allocated to any
particular reportable segment. These companywide expenses relate principally to basic researchexpenses that were not allocated to a particular reportable segment.

First Quarter, FY2015 (April 1, 2014 to June 30, 2014)(¥ million)
Gas
Businessin JapanSales(1) Sales toexternalcustomers

80,430

Reportable segment
Gas
Gas
Other
Business in Business
the USin Asia
31,48014,584

5,815

Total

132,310Adjustments(Note)

Amounts on
theConsolidatedStatementsof Income－

132,310

865
1,293
248
173
2,580
(2,580)(2) Sales from－inter-segment
transactions
and transfers
81,29532,774
14,833
5,988
134,891
132,310(2,580)
Total
5,402
1,387
769
1,278
8,838
8,483
(354)
Segment
earnings[Operatingincome]Note:
The ¥354 million negative adjustment for segment earnings is comprised of ¥19 million of intersegment eliminations and companywide expenses of ¥374 million that were not allocated to any
particular reportable segment. These companywide expenses relate principally to basic researchexpenses that were not allocated to a particular reportable segment.

(3) 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 firstquarter of the preceding fiscal year are reclassified based on the changes to the reportable segments.