July 30, 2020
Taiyo Nippon Sanso Corporation

Consolidated Financial Performancefor the First Quarter of Fiscal Year Ending March 31, 2021
(Based on IFRS)(Amounts less than ¥1 million are omitted)

1. Financial results for the first quarter of FYE2021 (April 1, 2020 – June 30, 2020)(1) Operating results(Percentages indicate year-on-year change)

Core operating
incomeRevenue(¥ million)

Operating income

Net income
attributable toowners of theparent

Net income%(¥ million)%(¥ million)%(¥ million)%(¥ million)

First quarterof184,503
FYE2021(12.3)

14,070(35.2)

14,070(33.3)

7,629(40.2)

First quarterof210,329
FYE2020

32.6

21,722

55.9

21,08942.7

12,765

25.6

Totalcomprehens
ive income%(¥ million)%

7,436(39.1)

17,835―

12,221

26.2(6,737) ―(Reference) Income before income taxes
First quarter of FYE2021: ¥11,495 million [(37.1%)]
First quarter of FYE2020: ¥18,264 million [28.4%]
Core operating income is calculated as operating income excluding certain gains and expenses
attributable to non-recurring factors (non-recurring items).
Basic earnings
per share (Yen)First quarter ofFYE2021
First quarter ofFYE2020

Diluted net income
per share (Yen)

17.19

―

28.24

―

(2) Financial position
Total assets

Total equity(¥ million)(¥ million)

Equity attributableto owners of theparent (¥ million)

Equity attributableto owners of theparent ratio (%)

First quarter of FYE2021(June 30, 2020)

1,788,539

449,402420,336

23.5

FYE2020 (March 31, 2020)

1,751,732

440,693409,344

23.4

12.

Dividends
Annual Dividend
End of 1st

End of 2ndquarter(Yen)FYE2020―FYE2021FYE2021 (est.)―

quarter

End of 3rdquarter

Term
end

Total(Yen)

(Yen)

(Yen)

(Yen)

14.00

―

14.00

28.00

14.00

―

14.00

28.00

Note: No revisions have been made to recently announced forecasts.

3.

Forecasts for business operations for FYE2021 full term (April 1, 2020 – March 31, 2021)(Percentages indicate year-on-year change)

Revenue

Full term(¥ million)%

830,000(2.4)

Core operating
incomeOperating income(¥ million)%(¥ million)(9.2)

82,00082,000%(12.7)Net income(¥ million)%

46,000(16.4)Net income
attributable toowners of the parent(¥ million)

44,000%

Basicearnings
per share(Yen)(17.5)

101.67

Note: No revisions have been made to recently announced forecasts.
(Reference) Income before income taxes
FYE2021 full term: ¥67,500 million [(14.7%)]

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. TheCompany gives no assurances 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 page 3, “6. Explanation concerning predictive information such as forecasts for businessoperations”.

5.

General information relating to the first quarter results(1) Explanation concerning business results
General overview
The business environment surrounding the Taiyo Nippon Sanso Group (TNSC Group) in the first quarter of thefiscal year under review (from April 1, 2020 to June 30, 2020) saw the global COVID-19 pandemic cause adrastic economic downturn and decline in demand in the countries and regions the TNSC Group has entered.
Under these conditions, production activity in the manufacturing sector decelerated, leading to a decrease in
shipments of air separation gases (oxygen, nitrogen, and argon).
Against this backdrop, the TNSC Group achieved the following results for the first quarter of the fiscal year
under review. Revenue on a consolidated basis decreased 12.3% year on year to ¥184,503 million, core operating
income decreased 35.2% to ¥14,070 million, operating income decreased 33.3% to ¥14,070 million and net
income attributable to owners of the parent decreased 39.1% to ¥7,436 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 sharply year
on year, mainly due to sluggish production activity in relevant industries. Meanwhile, in the electronics-related
field, revenue from electronic materials gases were mostly on a par with the previous fiscal year. In equipment
and installation, revenue declined year on year, primarily in welding and cutting equipment for metal processing.
As a result, in the Gas Business in Japan, revenue decreased 9.2% year on year to ¥76,084 million andsegment income declined 19.4% to ¥4,568 million.

2Gas Business in the United States
In the industrial-gas related business, revenue from air separation gases, a core product, decreased sharply year
on year, primarily for packaged and bulk gases. In the on-site business, revenue declined year on year due tothe impact of lower demand from gas customers. In equipment and installation, electronics-related revenue
increased, but revenue from welding and cutting equipment for metal processing decreased sharply, due partly
to the voluntary suspension of business activities at retail stores in the relevant states.
As a result, in the Gas Business in the United States, revenue decreased 9.7% year on year to ¥44,898
million and segment income decreased 31.9% to ¥3,605 million.
Gas Business in Europe
Demand for bulk gas decreased sharply due to stagnation in production activity as a whole in the key regions
Iberia (Spain and Portugal), Germany, and Italy. In the on-site business, demand fell significantly due to theimpact of a decline in demand from gas customers. In equipment and installation, demand decreased
substantially, mainly for welding and cutting equipment for metal processing.
As a result, in the Gas Business in Europe, revenue decreased 20.3% year on year to ¥35,109 million andsegment income decreased 50.9% to ¥3,400 million.
Gas Business in Asia & Oceania
In the industrial gas-related business, revenue from air separation gases, a core product, decreased sharply due
to the impact of city lockdowns in countries and regions such as the Philippines and stagnant production
activity in the manufacturing sector. In LPG, unit sales prices fell due to lower contract prices in purchasing,but shipments in Australia were solid. In the electronics-related business, shipments were favorable forelectronic materials gases in East Asia. In equipment and installation, demand decreased sharply, mainlyreflecting a decrease in spot projects in Singapore, as well as the absence of an installation project in Taiwan,
and lower demand for welding and cutting equipment for metal processing.
As a result, in the Gas Business in Asia & Oceania, revenue decreased 10.4% year on year to ¥23,451
million and segment income declined 10.3% to ¥2,335 million.
Thermos BusinessIn the Thermos Business, revenue from portable mugs, a core product, decreased sharply in Japan following
the loss of sales opportunities associated with periods of high demand such as the start of a new academic year
and the leisure season. These sales opportunities were lost because of restrictions on going outdoors and thevoluntary suspension of business activities due to a declaration of a state of emergency by the nationalgovernment. Meanwhile, sales of frying pans and tumblers were solid, as consumers spent more time at homein their daily lives. In addition, sales of eco-friendly shopping bags were launched in conjunction with theintroduction of fees for checkout bags starting in July 2020. Overseas, sales volume decreased in response tothe impact of business slowdowns in various regions.
As a result, in the Thermos Business, revenue decreased 24.7% year on year to ¥4,959 million, and segment
income fell 67.2% to ¥630 million.

6.

Explanation concerning predictive information such as forecasts for business operations
The Company has not revised its forecasts for business operations announced on May 12, 2020. This earnings
forecast was made on an assumption made at the end of the FYE2021 Q1 that remains unchanged whereby thedownturn in the global economy brought about by the COVID-19 pandemic will gradually recover in theFYE2021 Q2 and be essentially normalized by the FYE2021 Q3 onward. However, actual results may differ
significantly due to factors such as the spread of COVID-19 going forward.

7.

Notes to the condensed consolidated financial statements(Note regarding going concern assumption)
Not applicable.

38.

Segment information(1) Outline of reportable segments
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. No grouping of operating segments has been carried out forreporting 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 UnitedStates, Europe, and Asia & Oceania. In addition, the TNSC Group conducts the manufacture and sales businessof housewares 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

Main products and services

Gas Business in Japan
Gas Business in the UnitedStates
Gas Business in Europe
Gas Business in Asia &Oceania
Thermos Business

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

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.
(2) Figures of revenue and income (loss) by reportable segment
First quarter, FYE2020 (April 1, 2019 – June 30, 2019)(¥ million)
Reportable segment
Gas
Businessin Japan

Gas
Businessin theUnitedStates

Revenue toexternal customers

83,818

Revenue frominter-segment
transactions andtransfers

Adjustments(Note 1)

Amounts on
theConsolidated
Statements ofIncome

210,329―

210,329

4

7,730(7,730)―6,593

218,059(7,730)210,329

Gas
Businessin Europe

Gas
Businessin Asia &Oceania

Thermos
Business

49,69744,064

26,159

6,589

2,775

4,338―

612

86,59354,03544,064

26,772

Total

Revenue

Total

Segment income
5,669
5,292
6,926
2,602
1,923
22,414(692)(Note 2)
Notes:
1. The ¥692 million negative adjustment for segment income is comprised of ¥229 million of intersegment eliminations
and companywide expenses of ¥462 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).

421,722

First quarter, FYE2021 (April 1, 2020 – June 30, 2020)(¥ million)
Reportable segment
Gas
Businessin Japan

Gas
Businessin theUnitedStates

Revenue toexternal customers

76,084

Revenue frominter-segment
transactions andtransfers

Adjustments(Note 1)

Amounts on
theConsolidated
Statements ofIncome

184,503―

184,503

14

9,073(9,073)―

4,973

193,577(9,073)

184,503

Gas
Businessin Europe

Gas
Businessin Asia &Oceania

Thermos
Business44,898

35,10923,451

4,959

4,252

4,080

2723

80,337

48,97935,112

24,174

Total

Revenue

Total

Segment income
4,568
3,605
3,400
2,335
630
14,541(471)(Note 2)
Notes:
1. The ¥471 million negative adjustment for segment income is comprised of ¥109 million of intersegment eliminations
and companywide expenses of ¥362 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.
First quarter of FYE2020

First quarter of FYE2021(April 1, 2019 to June 30, 2019)(April 1, 2020 to June 30, 2020)

Segment income

21,722

14,070Gain on sales of noncurrent assets

160―

Impairment loss(315)

―

Other
Operating income

(478)

―

21,08914,070Financial revenue

789

867

Financial expenses(3,615)(3,441)

18,264

11,495

Income before income taxes

5

14,070