August 4, 2016
Taiyo Nippon Sanso Corporation

Consolidated Financial Performancefor the First Quarter of Fiscal Year Ending March 31, 2017
(Based on IFRS)(Amounts less than ¥1 million are omitted)

1. Financial results for the first quarter of FYE2017 (April 1, 2016 – June 30, 2016)(1) Operating results(Percentages indicate year-on-year change)

OperatingincomeRevenue

Income before
income taxes(¥ million)%(¥ million)%(¥ million)

%

First
quarter ofFYE2017

133,436(5.2)

12,328(5.5)

11,703(8.8)

Firstquarter ofFYE2016

140,746―

13,040―12,837―

Net income
attributable toowners of theparent

Total
comprehensiveincome(¥ million)%(¥ million)%

6,894 (13.5)

6,481 (15.2)(10,922)

―

7,971

7,645

11,055―

Net income(¥ million)

%

―

―

Note: Core operating income
First quarter of FYE2017: ¥12,126 million [8.0% ]First quarter of FYE2016: ¥11,227 million [―%]
Core operating income is calculated as operating income excluding certain gains and expenses attributable tonon-recurring factors (non-recurring items).
Basic earnings
per share (yen)First quarter ofFYE2017
First quarter ofFYE2016

Diluted earnings
per share (yen)

14.98

―

17.67

―

(2) Financial position
Total assets(¥ million)

Total equity(¥ million)

Equity attributableto owners of theparent (¥ million)

Equity attributableto owners of theparent ratio (%)

First quarter of FYE2017(June 30, 2016)

752,624

328,434

305,05440.5

FYE2016 (March 31, 2016)

787,505

344,866

320,457

40.7

1

2. Dividends
Annual Dividendnd

End of
1 quarter

End of 2quarterEnd of 3rdquarter

Termend

TotalYen

YenYenYenYenstFYE2016
FYE2017
FYE2017 (est.)

―

7.00

―

9.00

16.00

9.00

―

9.00

18.00

―

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

%

Basic
earnings
per share(Yen)First-half
293,000
3.0
24,200(0.7)
22,600(4.0)
14,700(2.2)
33.97
Full term
610,000
2.6
52,000
6.3
48,7004.6
30,0003.3
69.32
Notes: No revisions have been made to recently announced forecasts.
Core operating income First half of FYE2017: ¥24,200 million [7.3%]
FYE2017: ¥52,000 million [9.6%]
Changes from the previous fiscal year and the same period of the previous fiscal year are calculated using
actual results for the fiscal year ended March 31, 2016 prepared on an IFRS basis.
4. Explanation concerning the appropriate use of forecasts for business operations and other notable matters
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 quarter results
In the first quarter of the fiscal year under review (from April 1, 2016, to June 30, 2016), in the global economy,
China's economic slowdown became more pronounced with uncertainties spreading to other neighboring
countries in Asia. Meanwhile in the United States, the economy grew steadily, supported by firm personal
consumption, even though there were concerns about the impact of economies in other parts of the worldslowing. In Japan, although employment and income levels continue to improve, personal consumption showedsluggish growth. Compounded by the yen’s appreciation since the beginning of the year and an uncertain outlook
for the stock market, the Japanese economy has been treading water following a trend of improvement.
Against this backdrop, Taiyo Nippon Sanso Group (TNSC Group) achieved the following results for the firstquarter of the fiscal year under review. Revenue on a consolidated basis decreased 5.2% year on year to¥133,436 million, operating income decreased 5.5% to ¥12,328 million, and net income attributable to owners of
the parent decreased by 15.2% to ¥6,481 million.
The Taiyo Nippon Sanso Group has adopted International Financial Reporting Standards (IFRS) from thefirst quarter of the fiscal year ending March 31, 2017. In addition, the consolidated financial statements for thesame period of the previous fiscal year and 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 to non-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 core2

product, declined year on year, mainly reflecting a decline in demand from the key industries of steel, andchemicals. However, gas equipment and air separation units posted revenue growth.
In the electronics-related field, revenue from equipment and installation work, including semiconductor
manufacturing equipment, increased year on year, mainly owing to strong sales.
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 3.3% year on year to ¥74,153 million, while
segment income rose 2.2% to ¥6,072 million.
Gas Business in the United States
In the industrial gas-related business, shipments of bulk gas, primarily carbon dioxide gas, were strong, but salesof hard goods decreased significantly. In the electronics-related field, shipments of electronic materials gases
increased slightly.
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 14.9% year on year to ¥32,505
million, and segment income declined 17.1% to ¥2,032 million.
Gas Business in Asia & Oceania
In the industrial gas-related business, sales trended favorably in the Philippines. Apart from that, theconsolidation of Air Products Industry Co., Ltd. in Thailand and Renegade Gas Pty Ltd in Australia assubsidiaries of the Company in May and July 2015, respectively, contributed significantly to revenue growth.
In the electronics-related field, revenue from electronic materials gases and equipment in Taiwan, China, andSouth Korea was mostly unchanged year on year.
As a result of the above, in the Gas Business in Asia & Oceania, revenue increased 5.5% year on year to¥19,369 million, and segment income rose by 31.8% to ¥1,250 million.
THERMOS & Other Businesses
In the THERMOS & Other Businesses, although demand from inbound tourists visiting Japan settled down,sales of new products were strong. Consequently, revenue was mostly unchanged year on year.
As a result, in THERMOS & Other Businesses, revenue decreased 1.1% year on year to ¥7,408 million, andsegment income rose 24.0% to ¥2,928 million.
6.

Segment information
TNSC Group conducts gas businesses in Japan and overseas, mainly for customers in the steel, chemical, andelectronics industries, and it 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 stainlesssteel vacuum bottles, and conducts real-estate rental and other businesses. Therefore, the Company has
established the following four reportable segments: Gas Business in Japan, Gas Business in the US, 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

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.

3(1) Figures of revenue and income (loss) by reportable segment
First Quarter, FYE2016 (April 1, 2014 – June 30, 2015)(¥ million)
Gas
Businessin Japan

Gas
Businessin theUnitedStatesAdjustments(Note 1)

Amounts on
theConsolidated
Statements ofIncomeGas
Businessin Asia &Oceania

76,71338,18318,356

7,494

140,746―

140,746(2) Revenue frominter-segment
transactions andtransfers

1,982

1,853

728

289

4,854

―

19,084

7,783

145,600(4,854)

Total

78,69540,036

Segment income(Note 2)

5,940

2,451

948

2,362

11,703

THERMOS& OtherBusinesses

TotalRevenue(1) Revenue toexternal customers(4,854)(475)

140,746
11,227

Notes:
1. The ¥475 million negative adjustment for segment income is comprised of ¥41 million of intersegment
eliminations and companywide expenses of ¥434 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 Quarter, FYE2017 (April 1, 2016 – June 30, 2016)(¥ million)
Gas
Businessin Japan

Gas
Businessin theUnitedStatesAdjustments(Note 1)

Amounts on
theConsolidated
Statements ofIncomeGas
Businessin Asia &Oceania

74,15332,505

19,3697,408

133,436―

133,436

1,513

1,889

104

331

3,838

―

19,473

7,739

137,274(3,838)75,66734,394

6,072

2,032

1,250

2,928

12,284

THERMOS& Other
Businesses

Total

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

(3,838)(158)

133,436
12,126

Notes:
1. The ¥158 million negative adjustment for segment income is comprised of ¥243 million of intersegment
eliminations and companywide expenses of ¥401 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).

4(2) Reconciliation of segment income with income before income taxes(¥ million)
First Quarter of FYE2016(April 1, 2015 to June 30, 2015)

First Quarter of FYE2017(April 1, 2016 to June 30, 2016)

Segment income

11,227

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

1,813

――

201

13,04012,328

743

641

(947)

(1,266)

12,837

5

12,126

11,703