February 5, 2020
Taiyo Nippon Sanso Corporation

Consolidated Financial Performancefor the First Three Quarters of Fiscal Year Ending March 31, 2020
(Based on IFRS)(Amounts less than ¥1 million are omitted)

1. Financial results for the first three quarters of FYE2020 (April 1, 2019 to December 31, 2019)(1) Operating results(Percentages indicate year-on-year change)

Core operating
incomeRevenue

OperatingincomeNet income

Net income
attributable toowners of theparentTotal
comprehensive
income(¥ million)(%)(¥ million)(%)(¥ million)(%)(¥ million)(%)(¥ million)(%)(¥ million)(%)

First threequarters of
FYE2020

633,435

22.3

68,251

55.6

71,89660.9

42,54746.6

41,35851.9

28,511

47.5

First threequarters of
FYE2019

518,0309.9

43,871(4.0)

44,693(3.4)

29,018(29.6)

27,234(31.9)

19,330(63.4)(Reference) Income before income taxes
First three quarters of FYE2020: ¥60,915 million [44.3% ]First three quarters of FYE2019: ¥42,200 million [(3.3)% ]Core operating income is calculated as operating income excluding certain gains and expenses
attributable to non-recurring factors (non-recurring items).
Basic earnings
per shareFirst three quarters of
FYE2020First three quarters of
FYE2019

Diluted earnings
per share

(yen)

(yen)

95.57

―

62.93

―

(2) Financial position
Total assets

Total equity

Equity attributableto owners of theparentEquity attributableto owners of theparent ratio(¥ million)(¥ million)(¥ million)(%)

First three quarters of FYE2020(December 31, 2019)

1,785,701

457,977

426,738

23.9

FYE2019 (March 31, 2019)

1,771,015

435,854406,602

23.0

1

2.

Dividends
Annual Dividend
End of 1stquarter

End of 2ndquarter

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

―

12.00

―

13.00

25.00

―

14.00
―

14.00

28.00

FYE2019
FYE2020
FYE2020 (est.)

End of 3rdquarter

Term
end

Total

Note: Revisions of the latest forecasts of dividends: No

3.

Forecasts for business operations for FYE2020 full term (April 1, 2019 to March 31, 2020)(Percentages indicate year-on-year change)

Core operating
incomeRevenue(¥ million)(%)(¥ million)(%)

Operating income(¥ million)(%)

Net income
attributable to ownersof the parent

Net income(¥ million)

Basicearnings
per share(%)(¥ million)

(%)

(Yen)

855,000
15.5
91,50039.0
95,00042.1
56,000
28.1
Full term
Note: Revisions of the latest forecasts of consolidated operating performance: Yes(Reference) Income before income taxes
FYE2020 full term: ¥80,500 million [29.7%]

54,00030.8

124.78

4.

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 no assurances that business forecasts will be attained. Moreover, actual results may differ materially frombusiness forecasts due to various factors. For details on the assumptions of the forecasts and related matters, pleasesee page 3, “6. Explanation concerning predictive information such as forecasts for business operations.”

5.

General information relating to the three quarters results
The business environment surrounding the Taiyo Nippon Sanso Group (TNSC Group) in the first three quarters of
the fiscal year under review (from April 1, 2019 to December 31, 2019) saw a softening of production activities in
key industries in Japan, while Europe also experienced a slump in production activities in key industries. On theother hand, production activities in manufacturing industries in the U.S. were solid, and shipments of air separation
gases (oxygen, nitrogen, and argon) were on par with the previous fiscal year. In the electronics-related field,
shipments of electronic materials gases were on par with the previous fiscal year in Japan, but decreased overseas.
Against this backdrop, the TNSC Group achieved the following results for the first three quarters of the fiscal year
under review. Revenue on a consolidated basis increased 22.3% year on year to ¥633,435 million, core operating
income rose 55.6% to ¥68,251 million, operating income increased 60.9% to ¥71,896 million, and net income
attributable to owners of the parent rose 51.9% to ¥41,358 million.
Core operating income is calculated as operating income excluding certain gains and expenses attributable tonon-recurring factors (non-recurring items).
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, and chemicals. In the electronicsrelated 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 from the medical equipment sales company, IMI Co., Ltd.,acquired in October 2018.
As a result, in the Gas Business in Japan, revenue decreased 2.2% year on year to ¥260.257 million, while
segment income decreased 6.4% to ¥19,972 million.

2

Gas Business in the United States
In the industrial gas-related business, revenue increased primarily from bulk gas following steady production in the
manufacturing sector. In the on-site business, the start of operation of new projects for a chemicals manufacturer
and other customers contributed to revenue. In addition, revenue rose partly due to a contribution from the HyCO
business*, which was acquired in February 2019. In equipment and installation, revenue from the electronicsrelated field decreased.
As a result, in the Gas Business in the United States, revenue increased 7.2% year on year to ¥148,840 million,
and segment income rose 59.4% to ¥16,779 million.
* HyCO stands for hydrogen (H2) and carbon monoxide (CO), which are separated from natural and other gases through a technology called
Steam Methane Reforming (SMR). The HyCO business provides large-scale supply of H2 and CO to oil refining and petrochemical industries
through a pipeline.

Gas Business in Europe
Revenue from the European business amounted to ¥125,307 million and segment income from this business was¥19,212 million. The European business acquired from Praxair, Inc. of the United States in December 2018 has
been disclosed in this segment since the first three quarters of the previous fiscal year.
Gas Business in Asia & Oceania
In the industrial gas-related business, revenue from bulk gas declined sharply, primarily in China, and was soft
across the Asian region overall. Liquid petroleum gas (LPG) saw firm shipments in Australia. In the electronicsrelated business, revenue increased due to a large increase in revenue from equipment and installation. However,shipments of electronic materials gases declined year on year.
As a result of the above, in the Gas Business in Asia & Oceania, revenue increased 0.3% year on year to ¥79,161
million, while segment income decreased 4.8% to ¥8,148 million.
Thermos BusinessIn the Thermos Business, sales of vacuum insulated portable mugs in Japan were solid, while sales of sports-use
vacuum bottles and heat-retaining lunch boxes declined year on year, affected by unseasonable weather with a coolsummer and a warm winter. Also, the shipment volume of overseas distributors decreased.
As a result, in the Thermos Business, revenue decreased 8.1% year on year to ¥19,869 million and segment
income declined 15.9% to ¥6,060 million.

6.

Explanation concerning predictive information such as forecasts for business operations
The company has revised its full-year consolidated earnings forecast. Please see the press release titled “NoticeRegarding Earnings Forecast Revisions” issued on February 5, 2020.

7.

Notes to the condensed 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

IFRS 16

LeasesOutline 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 of morethan 12 months undertaken as lessee, IFRS 16 primarily requires lessees, inprinciple, to reflect in the financial statements their assets representing theirright to use leased assets and liabilities representing their obligations to makelease 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.
Upon applying IFRS 16, the TNSC Group has adopted the method where the cumulative effect of applying
this standard 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.

3

8.

Segment information
The TNSC Group’s reportable segments are components of the TNSC Group about which separate financial
information is available and which are evaluated regularly by the Board of Directors in deciding how to allocate
management resources and in assessing performance. Business segments are not aggregated for financial reporting
purposes.
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 United States,
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 five reportable segments are shown in the table below.
Reportable segment
Gas Business in Japan
Gas Business in the
United States
Gas Business in Europe
Gas Business in Asia &Oceania

Main products and services
Oxygen, nitrogen, argon, carbon dioxide, helium, hydrogen, acetylene, gas-related
equipment, specialty gases (electronic materials gases, pure gases, etc.), electronicsrelated equipment and installation, semiconductor manufacturing equipment, cutting
and welding equipment, welding materials, plants and machinery, liquid petroleumgas (LPG) and related equipment, medical-use gases (oxygen, nitrous oxide, etc.),
medical equipment, stable isotopes

Thermos BusinessHousewares

The accounting methods adopted for the reported operating segments are the same as the methods adopted toprepare the consolidated financial statements. Revenue from inter-segment transactions and transfers is based
primarily on prevailing market prices.
(1) Figures of revenue and income (loss) by reportable segment
First three quarters of FYE2019 (April 1, 2018 to December 31, 2018)(¥ million)
Reportable segment
Gas
Business
in JapanGas Business
Gas
Gas Businessin the United Business in in Asia &StatesEuropeOceania

Thermos
Business

Total

Adjustments(Note 1)

Amounts on the
consolidated
statements ofincomeRevenue
Revenue toexternal customers

265,989

138,856

12,68778,887

21,609518,030―

518,030

Revenue frominter-segment
transactions andtransfers

6,498

10,090

―

3,004

31

19,625(19,625)―

Total

272,488

148,946

12,687

81,892

21,641

537,655(19,625)

518,030

Segment income(Note 2)

21,331

10,526

560

8,559

7,205

48,183(4,312)

43,871

Notes:
1. The ¥4,312 million negative adjustment for segment income is comprised of intersegment eliminations of¥345 million, companywide expenses of ¥1,203 million that were not allocated to any particular reportablesegment, as well as the expenses of ¥2,762 million to acquire the European business. 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).

4First three quarters of FYE2020 (April 1, 2019 to December 31, 2019)(¥ million)
Reportable segment
Gas
Gas Business
Gas
GasBusinessBusiness in the United Business inin Asia &in JapanStatesEuropeOceania

Thermos
Business

Total

Adjustments(Note 1)

Amounts on the
consolidated
statements ofincomeRevenue
Revenue toexternal customers

260,257

148,840

125,307

79,161

19,869633,435―

633,435

Revenue frominter-segment
transactions andtransfers

7,447

11,970

82

2,319

20

21,840(21,840)―

Total

267,704

160,811

125,390

81,48019,889655,276(21,840)

633,435

Segment income(Note 2)

19,972

16,77919,212

8,148

6,060

70,173(1,922)

68,251

Notes:
1. The ¥1,922 million negative adjustment for segment income is comprised of intersegment eliminations of¥465 million and companywide expenses of ¥1,457 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).

(2) Reconciliation of segment income with income before income taxes(¥ million)

Segment income

First three quarters of FYE2019(April 1, 2018 to
December 31, 2018)
43,871First three quarters of FYE2020(April 1, 2019 to
December 31, 2019)
68,251948

6,490

Gain on sales of noncurrent assets
Impairment loss
Other
Operating income
Financial revenue
Financial expenses
Income before income taxes

5―(1,927)

(125)

(917)

44,69371,896

1,823

1,021

(4,317)(12,002)42,20060,915

Supplementary Materials for
Consolidated Business Performancefor the First Three Quarters of FYE2020

February 5, 2020
TAIYO NIPPON SANSO Corporation
11

Contents
１. Business Performance for First Three Quarters of FYE2020
1) Overview of business performance2) Business performance by segment
２. Full-Year Forecasts for FYE2020
1) Overview of forecasts for the full-year2) Forecasts by segment for the full-year
３. Reference Materials
1）Breakdown for revenue disclosure categories for each segment
2）Statement of non-recurring profit and loss3）Condensed Consolidated Statements of Cash Flows
4）Condensed Consolidated Statements of Financial Position
5）Key performance indicators
6）Sales mix by business
7）TNSC’s Gas Supply Structure21-1. Overview of business performance
FYE2019
Q3 results(Billions of yen)Margin518.0

Revenue

FYE2020
Q3 results

YoY Change

Margin633.4+115.4+22.3%

Core operating income

43.8

68.2

Non-recurring profit and loss

0.8

Operating income

44.6

Finance costs

-2.4

-10.9

-8.5

Income before income taxes

42.2

60.9

+18.7

Income tax expenses

-13.1

-18.3

+5.2

Net income

29.0

42.5

+13.5

8.5%

+24.4
10.8%

3.6

+55.6%

+2.8

71.8
8.6%

+27.2
11.4%

+60.9%(Attribution of net income)Net income attributable to ownersof the parent

27.2

Net income attributable to non-controlling interests

1.7

41.3
5.3%

+14.1
6.5%

1.1

+51.9%-0.6

Foreign currency translations (US$→¥): FYE2019 Q3 rate: $1=¥111.33 FYE2020 Q3 rate: $1=¥108.89(€→¥):
FYE2020 Q3 rate: €1=¥127.00 FYE2020 Q3 rate: €1=¥121.12
In FYE2019 Q3, European business acquisition-related expenses (advisory fees, etc.) of ¥2.7 billion had been recorded.

3

1-1. Overview of business performance【Revenue】
FYE2019
Q3 results

FYE2020
Q3 results% Change

Gas Business in Japan

265.9

260.2

-2.2%

Gas Business in the U.S.

138.8

148.8

+7.2%

Gas Business in Europe

12.6

125.3

-

Gas Business in Asia and Oceania

78.8

79.1

+0.3%

Thermos Business

21.6

19.8

-8.1%

Revenue Total

518.0

633.4

+22.3%

FYE2019
Q3 results

FYE2020
Q3 results% Change(Billions of yen)

【Operating income】(Billions of yen)

4

Gas Business in Japan

21.3

19.9

-6.4%

Gas Business in the U.S.

10.5

16.7

+59.4%

Gas Business in Europe

0.5

19.2

-

Gas Business in Asia and Oceania

8.5

8.1

-4.8%

Thermos Business

7.2

6.0

-15.9%

Eliminations or Corporate*

-4.3

-1.9

-

Core operating income Total

43.8

68.2

+55.6%

Non-recurring profit and loss

0.8

3.6

-

Operating income Total

44.6

71.8

+60.9%* Eliminations or Corporate：European business acquisition-related expenses (advisory fees, etc.) of ¥2.7 billion had been recorded for the first three quarters of FYE2019.

1-2. Business Performance by Segment: Gas Business in JapanFYE2019

FYE2020

Q3 results

Q3 results

Air separation gases, other

11.4

11.4

+0.1%

Packaged subtotal

11.4

11.4

+0.1%

Air separation gases

38.1

36.4

-4.4%

Carbon dioxide

18.3

17.8

-2.6%

Helium

3.3

3.4

+2.0%

(Billions of yen)
Packaged

Bulk
Gases
On-siteRevenue% Change

Other gases

7.6

7.5

-0.9%

Bulk subtotal

67.4

65.2

-3.2%

Air separation gases

56.8

53.7

-5.5%

Other gases

5.3

4.8

-8.1%

On-site subtotal

62.1

58.5

-5.8%

LP gas

24.3

20.3-16.5%-0.2%

Specialty gases

19.7

19.7

Subtotal

185.1

175.3

-5.3%

Gas-related and plant, other

48.5

55.3

+14.1%

Electronics-related

12.6

11.1

-11.7%

Welding and cutting-related

19.6

18.3

-6.5%

Subtotal

80.7

84.8

+5.0%

Revenue Total

265.9

260.2

-2.2%

21.3

19.9

-6.4%

Equipment and installation,
other

Segment income

Reasons for changes in revenue

Reason for change in segment income

・Bulk & On-site (Air separation gases): Revenue decreased primarily
in the key industries of steel, non-ferrous metals, metal processing,and chemicals
・Gas-related and plant, other (Medical): Contribution from acquisitionof IMI Co., Ltd, a medical equipment sales company

・Higher costs due to rising fuel prices
・Bulk & On-site (Air separation gases): Lower earnings fromdecreased revenue
・Contribution from acquisition of IMI Co., Ltd, a medical equipment
sales company
・Expenses: Higher costs due to personnel expenses, etc.

51-2. Business Performance by Segment: Gas Business in the U.S.
FYE2019

FYE2020

Q3 results

Q3 results

Air separation gases, other

34.4

36.1

+4.9%

Packaged subtotal

34.4

36.1

+4.9%

Air separation gases

27.4

27.7

+1.0%

Carbon dioxide

18.5

19.3

+4.5%

Helium

4.5

4.3

-4.3%

Other gases

7.3

6.6

-8.5%

Bulk subtotal

57.9

58.2

+0.5%

Air separation gases

5.9

7.1

+19.2%

Other gases

1.1

9.9

－

On-site subtotal

7.1

17.0

+139.6%

LP gas3.3

2.8-14.2%

Specialty gases

5.2

4.9

-6.9%

108.1

119.3

+10.3%(Billions of yen)
Packaged

Bulk
Gases
On-siteRevenue

Subtotal
Electronics-related

3.8

3.5

-7.5%

Welding and cutting-related

26.8

25.9

-3.2%

Subtotal

30.6

29.5

-3.7%

Revenue Total

138.8

148.8

+7.2%

10.5

16.7

+59.4%

Equipment and installation,other% Change

Segment income*Impact of foreign currency translation: Negative impacts of ¥3.01 billion on revenue and ¥0.23 billion on segment income

Reasons for changes in revenue
・Bulk: Firm shipments centered around air separation gases.
Carbon dioxide gas shipments increased with the start ofoperations at new plants
・On-site: Start of operation at new projects. Contribution fromacquisition of HyCO business

6

Reason for change in segment income
・Industrial gas-related business was generally firm, centeredon air separation gases
・Cost increase due to manufacturing costs, etc., in the carbon
dioxide gas business・Contribution from acquisition of HyCO business1-2. Business Performance by Segment: Gas Business in Europe
FYE2019

FYE2020

Q3 results

Q3 results

Air separation gases, other

2.0

23.5

Packaged subtotal

2.0

23.5

Air separation gases

3.0

29.4

Carbon dioxide

1.9

20.5

Helium

0.3

6.3

Other gases

1.0

8.8

Bulk subtotal

6.4

65.2

Air separation gases

1.9

16.4

Other gases

0.3

2.8

On-site subtotal

2.3

19.3

(Billions of yen)
Packaged

Bulk
Gases

Revenue

On-siteSpecialty gases

0.6

6.1

Subtotal

11.4

114.2

Gas-related and plant, other

0.9

8.6

Welding and cutting-related

0.2

2.3

Subtotal

1.2

11.0

Revenue Total

12.6

125.3

0.5

19.2

Equipment and installation,
other

Segment income*Impact of foreign currency translation: Negative impacts of ¥0.58 billion on revenue and ¥0.02 billion on segment income

The European business acquired from Praxair, Inc. of the United States・in December 2018 has been disclosed in this segment.
（The FYE2019 3Q results are the business performance of the European business in December 2018.）
The revenue increased 2.1% year on year from ¥122.7 billion as compared to the business performance of the Gas Business in Europe
from April 1, 2018 to December 31, 2018, assuming the acquisition date of the European business acquired from U.S. company Praxair, Inc.
was April 1, 2018.

7

1-2. Business Performance by Segment: Gas Business in Asia and Oceania
FYE2019

FYE2020

Q3 results

Q3 results

Air separation gases, other

2.9

2.7

Packaged subtotal

2.9

2.7

-7.0%

Air separation gases

13.9

12.3

-11.0%

Carbon dioxide

1.3

1.3

+4.5%

Helium

3.0

4.1+32.9%-11.1%(Billions of yen)
Packaged

Bulk
Gases
On-siteRevenueEquipment and installation,other% Change-7.0%

Other gases

2.3

2.0

Bulk subtotal

20.6

19.9

-3.5%

Air separation gases

2.7

2.7

+1.9%

On-site subtotal

2.7

2.7

+1.9%

LP gas

11.2

11.2

-0.4%

Specialty gases

22.0

20.5

-6.6%

Subtotal

59.6

57.2

-4.0%

Gas-related and plant, other

12.8

12.8

-0.5%

Electronics-related

2.6

5.2

+99.3%

Welding and cutting-related

3.7

3.7

+2.2%

Subtotal

19.2

21.8

+13.7%

Revenue Total

78.8

79.1

+0.3%

8.5

8.1

-4.8%

Segment income*Impact of foreign currency translation: Negative impacts of ¥2.90 billion on revenue and ¥0.37 billion on segment income

Reasons for changes in revenue
・Bulk (Air separation gases): Revenue decreased significantly,
mainly in China
・LP gas: Firm sales in Australia
・Specialty gases: Lower shipments of electronic materials gases
・Electronics-related equipment and installation: Revenue in Taiwan
rose substantially8

Reason for change in segment income
・Profitability improved in the LP gas business in Australia
・Earnings declined due to lower electronic materials gas revenue

1-2. Business Performance by Segment: Thermos Business(Billions of yen)

Revenue

FYE2019

FYE2020

Q3 results

Q3 results% Change

Japan

16.9

17.2

+1.5%

Overseas

4.6

2.6-43.2%

21.6

19.8

-8.1%

7.2

6.0

-15.9%

Revenue Total
Segment income*Impact of foreign currency translation: Negative impacts of ¥0.23 billion on revenue and ¥0.08 billion on segment income

Reasons for changes in revenue
・Japan: Sales of vacuum insulated mobile mugs were on par withthe previous fiscal year. Sales of sports bottles and heat-retaining
lunch boxes were sluggish
・Overseas: Change in sales environment in South Korea.
Decline in capacity utilization of production plants in Malaysia andthe Philippines

Reason for change in segment income
・Japan: Earnings decreased due to lower revenues caused
by unseasonable weather with a cool summer and warm winter・Overseas: Earnings decreased due to a decline in capacity
utilization of production plants. Lackluster sales at equity-method
affiliates

92-1. Full-Year Forecasts for FYE2020(Billions of yen)

FYE2019
Results
Margin

Revenue

740.3

FYE2020
Forecast(Announced Feb. 5)
Margin855.0

YoY Change% Change+114.7FYE2020
Forecast(Announced May.13)

Margin890.0+15.5%

Core operating income

65.8

91.5
8.9%

Non-recurring profit and loss

1.0

Operating income

66.8

+25.7

10.7%

3.5

95.0
9.0%

11.1%

95.0

+39.0%

10.7%

+2.5

7.0

+28.2

102.0

+42.1%

11.5%

Finance costs

-4.7

-14.5

-9.8

-15.5

Income before income taxes

62.0

80.5

+18.5

86.5

Income tax expenses

-18.3

-24.5

+6.2

-27.0

Net income

43.7

56.0

+12.3

59.5

+12.8

57.0

(Attribution of net income)Net income attributable to ownersof the parent

41.2

Net income for the year attributable to non-controlling interests

2.4

Assumed exchange rate for FYE2020: (US$→¥): $1=¥108.50,*Actual exchange rates for FYE2019 : (US$→¥): $1=¥111.07,

10

54.0
5.6%

(EUR→¥):€1=¥120.00(EUR→¥) €1=¥125.70

6.3%

2.0

+30.8%

-0.4

6.4%

2.5

2-2. Full-Year Forecasts for FYE2020 by Segment【Revenue】
FYE2019
Results(Billions of yen)

FYE2020
Forecast% Change(Announced Feb. 5)

FYE2020
Forecast(Announced Oct. 31)

Gas Business in Japan

363.9

360.0

-1.1%

375.0

Gas Business in U.S.

187.3

199.0

+6.2%

207.0

Gas Business in Europe

55.1

164.0

+197.6%168.0

Gas Business in Asia and Oceania

106.1

105.0

-1.1%

110.0

Thermos Business

27.8

27.0

-2.9%

30.0

Revenue Total

740.3

855.0

+15.5%

890.0

FYE2019
Results

FYE2020
Forecast% Change

FYE2020
Forecast*1【Operating income】(Billions of yen)

(Announced Feb. 5)

Gas Business in Japan

29.8

27.8

(Announced Oct. 31)

-6.7%

29.1

Gas Business in U.S.

15.6

22.0

+40.7%

22.0

Gas Business in Europe*1

6.5

25.0

+280.7%25.5

Gas Business in Asia and Oceania

9.1

10.7

+16.9%

11.0

9.1

8.2

-10.8%

9.4*2

Eliminations or Corporate

-4.5

-2.2

－

-2.0

Core operating income Total

65.8

91.5

+39.0%

95.0

Non-recurring profit and loss

1.0

3.5

－

7.0

Operating income Total

66.8

95.0

+42.1%

102.0

Thermos Business*1 The FYE2019 resulted represent business performance for the four-month period from December 2018 to March 2019 of the European business acquired from U.S. company Praxair, Inc.
*2 In FYE2019 resulted, European business acquisition-related expenses (advisory fees, etc.) of ¥2.7 billion had been recorded in core operating income.

11(Reference Materials)

12Breakdown for revenue disclosure categories for each segment
The breakdown for revenue disclosure categories for each segment is listed in the below chart.
Revenue disclosure category

Breakdown

Gases

Industrial gases such as oxygen, nitrogen, and argon, LP gases, specialty gases

Packaged

Gas filling containers (cylinders) are delivered to the customer, and the gas is supplied according to method of use

Air separation gases, other All gases including air separation gases (oxygen, nitrogen, argon that are created by separation from the atmosphere)
Bulk

A storage tank for liquified gas is installed within the customer’s facility, and the gas is supplied according to method of use

Air separation gases

Oxygen, nitrogen, argon

Carbon dioxide

Carbon dioxide gas, dry ice

HeliumHelium gas

Other gases

Other gases such as hydrogen

On-siteA gas production facility is established in an area adjacent to the customer, and the gas is constantly supplied using a directly connected pipe

Air separation gases

Oxygen, nitrogen, argon

Other gases

Other gases such as hydrogen and carbon monoxide

LP gas

Propane gas, butane gas

Specialty gases

Gases for electronic materials that are used in the manufacture of semiconductors or LCD panels, standard gas, high-purity gas

Equipment and installation, otherAncillary equipment for gas usage, refining equipment to raise gas purity level, construction for equipment installation, and other equipment

Gas-related and plant, otherGas-related supply facilities and gas abatement equipment, air separation units, and other equipment

Electronics-related

Construction for equipment and pipe installation toward electronics, refining equipment for removing impurities, and other equipment

Welding and cutting-related

Equipment, apparatuses, welding rods and other items (hard goods) used in metal processing including gas welding and cutting

13

Non-recurring Income and Expense Items
FYE2019
Q3 results

FYE2020
Q3 results

YoY changeCore operating income

43.8

68.2

+24.4

Non-recurring profit and loss

0.8

3.6

+2.8

Operating income

44.6

71.8

+27.2

(Billions of yen)【Non-recurring Income and Expense Items】
FYE2019 Q3 results
Item

FYE2020 Q3 results
Amount

Item(Billions of yen)

Gain on sales of domestic land

0.9 Gain on sales of domestic land, etc.

Other

-0.1

Restructuring-related expenses for thealfi business (Thermos)
Impairment loss associated with thedisposal of affiliated companies, etc.

Total

14

0.8 Total

Amount(Billions of yen)

6.5
-0.5
-2.3
3.6

Condensed Consolidated Statements of Cash FlowsFYE2019

FYE2020

Q3 results

Q3 results

Income before income taxes

42.2

60.9

+18.7

Depreciation and amortization

36.8

63.0

+26.2

(Billions of yen)

YoY change

Changes in working capital

2.3

-8.2

-10.5

Others

-22.2

-18.4

+3.8

59.1

97.2

+38.1

Capital expenditures

-53.5

-54.3

-0.8

Investments and loans-645.8-0.5+645.3

Others (asset sales, etc.)

3.6

9.8

+6.2

(2) Cash flows from investing activities-695.7-45.1+650.6

Free cash flow (1+2)-636.552.1+688.6

Net interest-bearing liabilities

932.1

942.6

+10.5

Adjusted net D/E ratio

－

1.48

－

(1) Cash flows from operating activities

Net interest-bearing liabilities: interest-bearing liabilities - cash and cash equivalents
Adjusted net D/E ratio: (Net interest-bearing debt – equity-type debt*1) / (equity attributable to owners of parent + equity-type debt*1)*1 Equity-type debt: the amount of debt procured by Hybrid finance*2 that has been recognized as equity credit by rating agencies(50% of the procured amount).
*2 Hybrid finance: A form of debt financing that has features resembling equity, such as voluntary deferral of interest, extremely
long-term redemption periods and subordination during liquidation or bankruptcy procedures.

15

Condensed Consolidated Statements of Financial Position

FYE2019

FYE2020

Results

Q3 results

Cash and cash equivalents

59.6

73.7

+14.1

Trade receivables

197.9

184.5

Inventories

66.2

OthersFYE2019

FYE2020

Results

Q3 results

Interest-bearing liabilities

1,005.4

1,016.4

+11.0

-13.4

Trade payables

105.9

93.1

-12.8

73.5

+7.3

Others

223.7

218.1

-5.6

23.2

26.6

+3.4

Total liabilities

1,335.1

1,327.7

-7.4

347.1

358.5

+11.4

Share capital and capitalsurplus, etc

429.5

464.1

+34.6

Property, plant and equipment*

639.3

664.7

+25.4

Other components of equity

-22.9

-37.3

-14.4

Goodwill

437.7

434.4

-3.3

Intangible assets

253.8

242.2

-11.6

406.6

426.7

+20.1

Others

92.9

85.6

-7.3

29.2

31.2

+2.0

1,423.8

1,427.1

+3.3

435.8

457.9

+22.1

1,771.0

1,785.7+14.7(Billions of yen)

Total current assets

Total non-current assets

Total assets

1,771.0

1,785.7

YoY Change+14.7

Equity attributableto owners of parent
Non-controlling interests

Total equity
Total liabilities
and equity* As a result of the application of IFRS 16, the carrying amount of the TNSC Group’s lease-related assets increased by ¥34.1 billion
and lease liabilities simultaneously increased by ¥34.6 billion on the day starting the application of IFRS 16.

16

YoY ChangeKey Performance Indicators (Consolidated)
FYE2019
Q3 results

FYE2020
Q3 results

FYE2019
Results

FYE2020
Forecast

Basic earnings per share (Yen)

62.93

95.57

95.42

124.78Overseas sales ratio

45.4%

56.2%

47.9%

55.0%

ROE

－

－

10.4%

12.9%

ROCE

－

－

6.2%

6.5%

Annual dividends per share (Yen)

－

－

25

28

Dividend payout ratio

－

－

26.2%

22.4%

Capital expenditures

53,52754,38974,15277,600645,865548

691,126－

36,881

63,073

56,11185,0001,011,415

1,016,408

1,005,402

991,900

932,167

942,616

945,782

914,400(fund basis)(Millions of yen)

Investments and loans*(Millions of yen)

Depreciation and amortization(Millions of yen)

Balance of interest-bearing liabilities(Millions of yen)

Net interest-bearing liabilities(Millions of yen)

* Investment and loans shown above represent investment and loans under cash flows from investing activities(purchase of investment securities, purchase of shares of subsidiaries, and payments for acquisition of businesses).

17

Sales mix by business

Energy6%
Medical8%

Electronics
17%

FYE2020
Q3 results¥613.5 billion(excluding Thermos)

18

Industrial
Gases
69%

TNSC’s Gas Supply Structure
Separate gases

Supplied via pipeline(on-site)
OxygenNitrogen

CE

Argon

Evaporator

Tanker trucks(bulk gases)
OxygenArgon

NitrogenAir separation unit (ASU)
OxygenNitrogen

Argon

Filling station
Packaged gases

Supply via cylinders(packaged gases)

Other gases
OxygenNitrogen

Argon

Supply via tanker trucks, cylinders(bulk and packaged gases)
Chemicalplant offgas

Import fromoverseas incontainers, etc.

Carbondioxide gas

HydrogenHeliumLPG

Specialty
gases

Acetylene

Customers

・Steel andnonferrous metals
・Electronics
・Petroleum andchemicals
・Automobiles andindustrial
machinery・Glass and paper・Medical care
・Food・OtherPackaged gases
Dewar
vessel(liquid)

Carbondioxide gas

HydrogenHeliumLPG

Specialty
gases

Acetylene

19

Disclaimer●These materials are not intended for purposes of disclosure for securities
transactions, and it is impossible to guarantee that the information
contained in this presentation is accurate and complete.
●This presentation and report contain forward-looking statements (estimatesand forecasts) regarding the future plans, strategies, activities andperformance of Taiyo Nippon Sanso Corporation. Forward-looking
statements reflect management’s assumptions and beliefs based on
information available as of the time of writing. Actual results reflect avariety of risk and uncertainties. These risks and uncertainties include, but
are not limited to, changes in general economic and specific market
conditions, currency exchange rate fluctuations, tax systems, andregulations.
●Accordingly, actual results may differ from forecasts issued at this time.
With this in mind, please refrain from relying solely on these materials when
making investment decisions.

20