May 8, 2015
Taiyo Nippon Sanso Corporation

Consolidated Financial Performancefor Fiscal Year 2015
(Based on Japan GAAP)
1. Financial results for the FY2015 (April 1, 2014 – March 31, 2015
(1) Operating results(Amounts less than ¥1 million are omitted)
Net sales(¥ million)
FY2015FY2014559,373
522,746

Operating income

YoY
Change7.0%
11.6%(¥ million)
35,29731,489Ordinary income

YoY
Change12.1%
26.5%(¥ million)
34,28230,546

YoY
Change12.2%
32.5%

Net income(¥ million)
20,764
20,194

YoY
Change2.8%－Note: Comprehensive income
FY2015: ¥52,965 million [13.9% ]FY2014: ¥46,512 million [251.5 %]FY2015FY2014

Earnings pershare (Yen)
47.98
49.42

Diluted earnings
per share (Yen)
―
―

ROE

ROA
7.0%
8.4%

4.5%
4.5%

OperatingMargin6.3%
6.0%

Reference: Equity in earnings of affiliates
FY2015: ¥2,500 million
FY2014: ¥1,999 million(2) Financial position
Total assets(¥ million)
782,357
731,677

FY2015 (March 31, 2015)
FY2014 (March 31, 2014)

Note: Equity
As of March 31, 2015:
As of March 31, 2014:Net assets(¥ million)341,207
298,475

Equity ratio (%)
40.5
37.5

Net assets
per share (¥)
733.04633.69¥ 317,244 million¥ 274,307 million(3) Consolidated cash flows

FY2015FY2014

Cash flows fromoperating activities(¥ million)
58,61556,716

Cash flows frominvesting activities(¥ million)(30,583)(55,295)

Cash flows from
Balance of cash and cash
financing activities
equivalents at term-end(¥ million)(¥ million)
51,547(33,866)
27,88456,088

2. Dividends
Annual Dividend

FY2014FY2015FY2016 (est.)

End ofEnd of
End of
1st
2nd3rdquarter quarter quarter
Yen
Yen
Yen――6.00
――
6.00
――
7.00

Termend

Total

Yen
6.00
7.00
7.00

Yen
12.00
13.00
14.00

Ratio ofTotal amount Payout ratio
dividends toof dividends (consolidated)
net assets(¥ million)
4,926
5,628%

%
24.3
27.1
25.3

2.1
1.9

3. Forecasts for business operations for FY2016 full term (April 1, 2015 – March 31, 2016)
Net salesFirst-half
Full term

Operating income

Ordinary income

Net income(%: YoY)
Earnings
per share(¥ million)

YoYChange(¥ million)

YoYChange(¥ million)

YoY
Change(¥ million)

YoY
Change295,000
650,000

9.7
16.2

16,60041,0001.0
16.2

16,20039,300(2.2)
14.6

10,00024,0000.9
15.6(Yen)

23.11
55.46

4. Business performance(1) Analysis of business results(i) Overview
Looking at the global economy during the reporting period, the U.S. economy showed a steadyrecovery, although economic growth slowed 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 the weaker yen.
Against this backdrop, Taiyo Nippon Sanso Group (TNSC Group) achieved the followingresults. Net sales on a consolidated basis increased 7.0% year on year to ¥559,373 million,operating income rose 12.1% to ¥35,297 million, and ordinary income increased 12.2% to ¥34,282
million. Net income increased 2.8% from the previous fiscal year to¥20,764 million.
(ii) Breakdown of business performance by operational segment
Gas Business in Japan
Sales of air separation gases (oxygen, nitrogen and argon), a core product, rose year on year, withsales remaining firm primarily to the steel industry, a key industry for this business, and totransportation equipment-related industries including shipbuilding. However, there was lower
demand for these gases from the chemicals industry. In addition, sales of plantst and welding andcutting 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
of liquid crystal panels, solar batteries, and semiconductors.
In the medical field, despite a 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 fiscalyear 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) during the fiscal
year under review, sales of LPG dropped significantly year on year.
As a result, in the Gas Business in Japan, net sales increased 0.8% year on year to ¥344,635
million and operating income rose 7.2% to ¥25,045 million.
Gas Business in the United States
Against a backdrop of 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 21.8% year on year to¥130,983 million, and operating income rose by 22.9 % to ¥5,795 million.
Gas Business in AsiaIn China, despite sluggish sales in the northeast region, sales were strong overall, centered onnitrogen in 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 14.1% year on year to¥61,995 million, and operating income rose by 29.1% to ¥2,468 million.
Other Businesses
In the Thermos Business, sales remained strong, particularly of new products. Our subsidiary inSouth Korea, which came within the scope of consolidation in fiscal 2014, also performed well,and sales increased substantially year on year.
As a result, in Other Businesses, net sales increased 14.5% year on year to ¥21,758 million, andoperating income climbed by 12.2% to ¥3,437 million.
(iii) Prospects for FY2016
Regarding the current outlook for the Japanese economy, although some companies in themanufacturing sector in Japan are beginning to shift from overseas production to domesticproduction, this trend is limited and business conditions are expected to remain challenging in themedium and long term, amid rising energy costs and no prospects for a significant increase indemand.
Meanwhile, overseas, the repatriation of industries to the United States and high economic
growth in emerging countries are expected.
Amid these circumstances, the Company and the TNSC Group have formulated a new
medium-term business plan, Ortus Stage 1, covering the three-year period from fiscal 2015 to fiscal
2017 (April 1, 2014－March 31, 2017), and the Group will make a concerted effort to improvedomestic earnings in an era of low growth, to focus management resources on overseas growth
opportunities, and to enhance corporate value.
Details of forecasts for fiscal 2016 are shown below. For the purposes of these forecasts, theaverage exchange rate of the Japanese yen against the U.S. dollar in fiscal 2016 is assumed to be¥120/$1.
(Billions of yen)
Net sales
FY2016(April 1, 2015－March 31, 2016)
FY2015(April 1, 2014－March 31, 2015)
YoY change (%)

Operatingincome

Ordinaryincome

Net income

6,500

410

393

240

5,593

352

342

207

16.2

16.2

14.6

15.6

In the year ending March 31, 2016, as a result of the change in the accounting period ofMatheson Tri-Gas, Inc. and Leeden National Oxygen, Ltd., TNSC Group forecasts net sales of¥50,000 million, operating income of ¥3,000 million, ordinary income of ¥2,500 million, and net
income attributable to the parent company’s shareholders of ¥1,500 million.
(2) Basic Company policy on profit allocation, and dividend payments for the reporting term andthe next term
The Company has adopted a policy of allocating sufficient earnings to internal reserves for theexpansion and strengthening of its corporate capabilities, and will endeavor to make shareholder
returns in line with a dividend policy linked to consolidated performance and based on sustained
payment of a stable dividend.
Based on this policy, the Company plans to pay a year-end dividend of ¥7 per share toshareholders for the fiscal year ended March 31, 2015, an increase of ¥1 over the previous fiscal

year. As a result, including the interim dividend per share of ¥6, the Company plans to pay anannual dividend per share of ¥13.
For fiscal 2016, the management of the Company plans to pay an annual dividend of ¥14 pershare, similarly consisting of term-end and interim payments of ¥7 each.
(3) OtherTaiyo Nippon Sanso Holdings Singapore Pte. Ltd. was established on July 30, 2014. Because its
capital exceeded 10% of that of the Company, Taiyo Nippon Sanso Holdings Singapore Pte. Ltd.
became a specified subsidiary of the Company.
On October 1, 2014, Taiyo Nippon Sanso Singapore Pte. Ltd. underwent an absorption merger
with Company subsidiary Leeden Limited (name changed to Leeden National Oxygen Ltd. onOctober 1, 2014), and was dissolved in the merger. As a result, Taiyo Nippon Sanso Singapore Pte.
Ltd. ceased to be a specified subsidiary of the Company.
5.

Basic principles regarding adoption of financial reporting standards
TNSC Group plans to voluntarily adopt International Financial Reporting Standards (IFRS) fromthe first quarter of the fiscal year ending March 31, 2017.
The Taiyo Nippon Sanso Group has positioned the globalization of its business as a key
management strategy in the Medium-Term Business Plan, Ortus Stage 1. Against this backdrop, theGroup decided to voluntarily adopt IFRS with the goals of improving the international
comparability of its financial statements in capital markets and of unifying accounting procedureswithin the Group.

6. Segment information(1) Overview of reporting 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 the
purpose of making decisions about resources to be allocated to the segments and evaluate thesegments’ 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 thefollowing four reportable segments: Gas Business in Japan, Gas Business in the US, Gas Businessin Asia, and Other. Other businesses mainly include the Thermos Business, which primarily
manufactures and sells household items.
In order to implement management’s strategic policies as described in the Company’s
medium-term business plan, Ortus Stage 1, formulated on May 13, 2014, the Company has decided
to make organizational 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.” In line with this decision, from the fiscal year under review, the Company
has changed its reportable segments.
Therefore, to facilitate the year-on-year comparisons, the figures for the preceding fiscal year
are reclassified based on the changes to the reportable segments.
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 theUnited States
Gas Business in Asia
Other Businesses

Main products
Oxygen, nitrogen, argon, carbon dioxide, helium, hydrogen, acetylene,gas- related equipment, specialty gases (electronic materials gases, puregases, etc.), electronics-related equipment and installation, semiconductor
manufacturing equipment, cutting and welding equipment, welding
materials, plants and machinery, liquid petroleum gas (LPG) and relatedequipment, medical-use gases (oxygen, nitrous oxide, etc.), medicalequipment, stable isotopes
Housewares, real-estate rental

(2) Method of calculating figures of sales, earnings or losses, assets, liabilities and others of theCompany’s reporting segments
The accounting procedures for the reporting business segments are listed using figures based on
Important Matters Forming the Basis for Preparation of Consolidated Financial Statements.
Segment income figures are for operating income.
Intersegment transactions and transfers are based on the current market price.
(3) Figures of sales, earnings or losses, assets, liabilities and others by reportable segment
FY2014 (April 1, 2013 – March 31, 2014)(¥ million)
Gas
Businessin JapanSales(1) Sales toexternalcustomers(2) Sales frominter-segment
transactions andtransfers
TotalSegment
earnings[Operatingincome]Other
depreciationReportable segment
Gas
Gas
OtherBusinessBusiness Businesses
in thein Asia
UnitedStates

Total

Adjustments(Note)

Amounts on
theConsolidated
Statements ofIncome522,746

341,883

107,504

54,34919,010522,746

－

5,673

4,610

897

746

11,926

347,556

112,114

55,246

19,756534,672(11,926)

23,368

4,714

1,912

3,064

33,05917,576

11,045

4,328

606

33,556－(11,926)

522,746(1,569)31,489(48)

33,507Note:
1. The ¥1,569 million negative adjustment for segment earnings is comprised of ¥14 million ofintersegment eliminations and companywide expenses of ¥1,554 million that were not allocatedto any particular reportable segment. These companywide expenses related principally to basic
research expenses that were not allocated to a particular reportable segment.
2. The Company has not allocated assets to any business segment.

FY2015 (April 1, 2014 – March 31, 2015)(¥ million)
Gas
Businessin JapanSales(1) Sales toexternalcustomers(2) Sales frominter-segment
transactions andtransfers
TotalSegment
earnings[Operatingincome]
Otherdepreciation

Reportable segment
GasGasOtherBusinessBusiness Businessesin thein Asia
UnitedStates

Total

Adjustments(Note)

Amounts on
theConsolidated
Statements ofIncome559,373344,635

130,983

61,99521,758559,373

－

6,267

6,645

1,190

656

14,759(14,759)－

350,902137,629

63,186

22,414574,132(14,759)559,373

25,045

5,795

2,468

3,437

36,747(1,449)35,297

17,451

13,405

4,112

688

35,658(89)

35,568Note:
1. The ¥1,449 million negative adjustment for segment earnings is comprised of ¥72 million ofintersegment eliminations and companywide expenses of ¥1,377 million that were not allocatedto any particular reportable segment. These companywide expenses related principally to basic
research expenses that were not allocated to a particular reportable segment.
2. The Company has not allocated assets to any business segment.
3. Changes to reportable segments
To reflect more properly the Company's operating results by reportable segment, from theconsolidated fiscal year ending March 31, 2015 the Company has changed the method of
allocating certain expenses to a method based on a rational standard appropriate for the actual
situation after a reorganization of each segment.
The “Figures of sales, earnings or losses, by reportable segment” for the previous consolidated
fiscal year have been prepared by the method of calculating profit or loss after thereorganization.