February 7, 2017
Taiyo Nippon Sanso Corporation

Consolidated Financial Performancefor the First Three Quarters of Fiscal Year 2017
(Based on IFRS)(Amounts less than ¥1 million are omitted)

1. Financial results for the first three quarters (April 1, 2016 – December 31, 2016)(1) Operating results(Percentages indicate year-on-year change)

Operatingincome

Revenue

Income before
income taxes

Net income

Net income
attributable toowners of theparent

Total
comprehensive
income(¥ million)%(¥ million)%(¥ million)%(¥ million)%(¥ million)%(¥ million)%

First threequarters ofFYE2017

415,881(3.8)

41,076

6.6

39,027

4.8

27,263

7.8

26,0348.2

31,68085.5First threequarters ofFYE2016

432,157―

38,546―37, 245―

25,278―24,067―

17,074―

Note: Core operating income
First three quarters of FYE2017: ¥ 40,885 million [11.3% ]First three quarters of FYE2016: ¥ 36,732 million [―%]
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 three quarters ofFYE2017
First three quarters ofFYE2016

Diluted earnings
per share (yen)

60.16

―

55.61

―

(2) Financial position
Total assets(¥ million)

Total equity(¥ million)

Equity attributableto owners of theparent (¥ million)

Equity attributableto owners of theparent ratio (%)

First three quarters of FYE2017(December 31, 2016)

940,104

367,405

342,882

36.5

FYE2016 (March 31, 2016)

787,505

344,866

320,457

40.7

2. Dividends
Annual Dividend
End of1 quarterEnd of 2quarterEnd of 3rdquarter

Termend

TotalYenYenYenYenYenstFYE2016
FYE2017
FYE2017 (est.)

nd―

7.00

――

9.00

―

9.00

16.00

9.00

18.00

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

13. Forecasts for business operations for FYE2017 full term (April 1, 2016 – March 31, 2017)(Percentages indicate year-on-year change)

OperatingincomeRevenue(¥ million)%(¥ million)

Income before
income taxes%(¥ million)%

Net income
attributable to ownersof the parent(¥ million)%

Basicearnings
per share(Yen)

Full term
580,000(2.4)
55,00012.4
51,70011.0
33,00013.7
76.25
Notes: Revisions have been made to recently announced forecasts.
Please see the press release titled “Notice Regarding Earnings Forecast Revisions” issued today (February 7, 2017) for details on
revisions to consolidated earnings forecasts.
Core operating income for FYE2017: ¥54,000 million [13.8%]
Changes from the previous fiscal year are calculated using actual results for the fiscal year ended March 31, 2016 prepared on anIFRS basis.

4. Explanation concerning the appropriate use of forecasts for business operations
The Taiyo Nippon Sanso Group has adopted International Financial Reporting Standards (IFRS) from the firstquarter of the fiscal year ending March 31, 2017. In addition, the consolidated financial statements for the same
period of the previous fiscal year and the previous fiscal year are presented based on IFRS.
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.
5. General information relating to the first three quarters results
In the first three quarters of the fiscal year under review (from April 1, 2016 to December 31, 2016), the global
economy continued to see excessive investment and economic deceleration trends in China, with the impact ofthese trends spreading to neighboring countries in Asia. In the United States, the economy staged a gradual
recovery, supported by higher stock prices and a stronger dollar led by expectations for various policies of the newadministration as personal consumption grew steadily. In response to the impact of these developments in theUnited States, the Japanese economy saw a return to stability in the stock markets and foreign exchange market,along with showing signs of improving corporate earnings. With employment and income levels continuing toimprove, economic conditions have been trending firmly.
Against this backdrop, the Taiyo Nippon Sanso Group (TNSC Group) achieved the following results for thefirst three quarters of the fiscal year under review. Revenue on a consolidated basis decreased 3.8% year on year to¥415,881 million, operating income increased 6.6% to ¥41,076 million, and net income attributable to owners of
the parent increased by 8.2% to ¥26,034 million.
The Taiyo Nippon Sanso Group has adopted International Financial Reporting Standards (IFRS) from the firstquarter of the fiscal year ending March 31, 2017. In addition, the condensed consolidated financial statements forthe same period of the previous fiscal year and the consolidated financial statements for the previous fiscal year
are presented based on IFRS.
A breakdown of business performance by reportable segment is as follows. Segment income represents core
operating income, which is calculated as operating income excluding certain gains or losses attributable tonon-recurring factors (non-recurring items).
Gas Business in Japan
In the industrial gas-related business, revenue from air separation gases (oxygen, nitrogen and argon), a coreproduct, declined year on year, mainly reflecting a decline in sales of products to the key industries of steel andchemicals. In the gas-related equipment business, revenue declined year on year due to the absence of the strong
sales of hydrogen stations recorded in the previous fiscal year, but in the air separation units business there was alarge increase in revenue due to growth in demand.
In the electronics-related field, revenue increased year on year due to increased demand for electronic materials
gases. In the energy-related field, revenue from liquid petroleum gas (LPG) dropped substantially year on year due
to a fall in the import price.
As a result, in the Gas Business in Japan, revenue decreased 2.7% year on year to ¥230,987 million, while
segment income rose 7.9% to ¥22,103 million.
Gas Business in the United States
In the industrial gas-related business, sales of bulk gas rose substantially, due partly to shipments of carbon
dioxide gas, in addition to the consolidation of a business acquired from Air Liquide Group as a subsidiary since2September 2016, despite a decline in sales of hard goods. In the electronics-related field, shipments of electronicmaterials gases decreased.
In addition, as a result of the yen's continued appreciation, there was a significant decrease in revenue due tothe impact of foreign exchange translation.
As a result, in the Gas Business in the United States, revenue decreased 7.0% year on year to ¥105,729 million,and segment income rose 13.2% to ¥8,136 million.
Gas Business in Asia & Oceania
In the industrial gas-related field, sales trended favorably in the Philippines, but declined sharply in Singapore andMalaysia. Apart from that, the consolidation of Air Products Industry Co., Ltd. in Thailand and Renegade Gas Pty
Ltd in Australia as subsidiaries of the Company in May and July 2015, respectively, contributed significantly torevenue growth.
In the electronics-related field, revenue from electronic materials gases and equipment in Taiwan, China, andSouth Korea was mostly unchanged year on year.
In addition, as a result of the yen's continued appreciation, there was a significant decrease in revenue due to theimpact of foreign exchange translation.
As a result of the above, in the Gas Business in Asia & Oceania, revenue decreased 2.5% year on year to¥58,704 million, and segment income rose by 6.2% to ¥4,206 million.
Thermos & Other Businesses
In the Thermos & Other Businesses, although demand from inbound tourists visiting Japan settled down, sales ofnew products were strong. Consequently, revenue was mostly unchanged year on year.
As a result, in Thermos & Other Businesses, revenue decreased 1.9% year on year to ¥20,458 million, while
segment income increased 23.0% to ¥7,905 million.

6. Explanation concerning Predictive Information such as Consolidated Earnings Forecasts
The Company has revised its consolidated earnings forecasts for the full term of fiscal year 2017, ending March 31,
2017.
For details, please see the press release titled “Notice Regarding Earnings Forecast Revisions” issued today(February 7, 2017).

7. Segment information
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, and Asia & Oceania.
In addition, the TNSC Group manufactures and sells housewares such as stainless steel vacuum bottles, andconducts real-estate rental and other businesses.
Therefore, the Company has established the following four reportable segments: Gas Business in Japan, Gas
Business in the United States, Gas Business in Asia & Oceania, and Thermos & Other Businesses.

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 &Oceania
Thermos & OtherBusinesses

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

3

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, FYE2016 (April 1, 2015 – December 31, 2015)(¥ million)
Gas
Businessin JapanGas
Businessin theUnitedStatesAdjustments(Note 1)

Amounts on
theConsolidated
Statements ofIncome

Gas
Business
in Asia &Oceania

Thermos& Other
Businesses

237,432

113,693

60,184

20,846432,157―

432,157

5,519

5,222

1,743

870

13,356―

61,92821,716445,513(13,356)

242,952

118,915

20,475

7,185

3,960

6,426

38,047

TotalRevenue(1) Revenue toexternal customers(2) Revenue frominter-segment
transactions andtransfers
Total
Segment income(Note 2)

(13,356)(1,314)432,157
36,732

Notes:
1. The ¥1,314 million negative adjustment for segment income is comprised of ¥86 million of intersegment
eliminations and companywide expenses of ¥1,228 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).
First Three Quarter, FYE2017 (April 1, 2016 – December 31, 2016)(¥ million)
GasBusinessin Japan

Gas
Businessin theUnitedStatesAdjustments(Note 1)

Amounts on
theConsolidated
Statements ofIncome

Gas
Business
in Asia &Oceania

Thermos& Other
Businesses

230,987

105,72958,704

20,458415,881―415,881

5,385

6,005

844

956

13,192―59,54921,414

429,073(13,192)

236,373

111,735

22,103

8,136

4,206

7,905

42,352

TotalRevenue(1) Revenue toexternal customers(2) Revenue frominter-segment
transactions andtransfers
Total
Segment income(Note 2)

(13,192)(1,466)415,881
40,885

Notes:
1. The ¥1,466 million negative adjustment for segment income is comprised of ¥309 million of intersegment
eliminations and companywide expenses of ¥1,157 million that were not allocated to any particular
reportable segment.
These companywide expenses related principally to basic research expenses that were not allocated to aparticular 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).

4(2) Reconciliation of segment income with income before income taxes(¥ million)
First Three Quarter of FYE2016

First Three Quarter of FYE2017(April 1, 2015 to December 31, 2015)(April 1, 2016 to December 31, 2016)

Segment income

36,732Gain on step acquisition
Gain on sales of noncurrent assets
Operating income
Financial revenue
Financial expenses
Income before income taxes

1,813――

191

38,546

41,076

1,311

1,226

(2,612)(3, 276)

37,245

540,88539,027