July 31, 2017
Taiyo Nippon Sanso Corporation

Consolidated Financial Performancefor the First Quarter of Fiscal Year 2018
(Based on IFRS)(Amounts less than ¥1 million are omitted)

1. Financial results for the first quarter of FYE2018 (April 1, 2017 – June 30, 2017)(1) Operating results(Percentages indicate year-on-year change)

OperatingprofitRevenue

Income before
income taxes

Net profit
attributable toowners of theparentNet profit

Total
comprehensiv
e income(¥ million)%(¥ million)%(¥ million)%(¥ million)%(¥ million)%(¥ million)%

Firstquarter ofFYE2018

150,861

13.1

14,03715.8

14,337

16.3

7,898

14.6

7,611

17.4

8,725

―

First
quarter ofFYE2017

133,436(5.2)

12,1268.0

12,328(5.5)

6,894(13.5)

6,481(15.2)(10,922)―(Reference) Income before income taxes
First quarter of FYE2018: ¥13,624 million [16.4% ]First quarter of FYE2017: ¥11,703 million [(8.8)%]
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 ofFYE2018
First quarter ofFYE2017

Diluted net income
per share (yen)

17.59

―

14.98

―

(2) Financial position
Total assets(¥ million)

Total equity(¥ million)

Equity attributableto owners of theparent (¥ million)

Equity attributableto owners of theparent ratio (%)

First quarter of FYE2018(June 30, 2017)

918,868

379,997355,179

38.7

FYE2017 (March 31, 2017)924,281

376,862

351,57638.0

2.

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

Termend

TotalYenYenYenYenYenstFYE2017
FYE2018
FYE2018 (est.)―nd9.00

―

11.00

20.00

11.00

―

11.00

22.00

―

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

13.

Forecasts for business operations for FYE2018 full term (April 1, 2017 – March 31, 2018)(Percentages indicate year-on-year change)

OperatingincomeRevenue(¥ million)%(¥ million)

Income before
income taxes%(¥ million)

First-half
Full term

300,000
11.6
26,800
4.1
27,300620,000
6.6
56,5003.2
57,000Note: No revisions have been made to recently announced forecasts.
(Reference) Income before income taxes
First half of FYE2018: ¥25,100 million [2.3%]
FYE2018 full term: ¥52,500 million [4.6%]

%

5.2
6.2

Net profit attributableto owners of the parent(¥ million)

15,90034,500

%

(3.5)
(0.7)

Basicearnings
per share(Yen)

36.74
79.72

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.

5.

General information relating to the first quarter results
In the first quarter of the fiscal year under review (from April 1, 2017 to June 30, 2017), the global economy saw
signs of improvement in the Chinese economy, underpinned by infrastructure investment led by the Chinese
government. In the United States, the economy expanded at a gradual pace, supported by an improving
employment picture, despite uncertain policy trends surrounding the current administration. The Japanese
economy saw a return to stability in the stock markets, along with showing signs of improving corporate
earnings. With employment and income levels continuing to improve, economic conditions have been following
a gradual recovery path.
Against this backdrop, the Taiyo Nippon Sanso Group (TNSC Group) achieved the following results for thefirst quarter of the fiscal year under review. Revenue on a consolidated basis increased 13.1% year on year to¥150,861 million, core operating income rose 15.8% to ¥14,037 million, operating income increased 16.3% to¥14,337 million, and net income attributable to owners of the parent increased by 17.4% to ¥7,611 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 (oxygen, nitrogen and argon), a coreproduct, increased slightly year on year. In addition, revenue from hard goods rose significantly due to growth indemand for cutting and welding equipment, as well as welding materials.
In the electronics-related field, revenue from electronic materials gases trended favorably due to increased
demand from the liquid crystal display (LCD) and semiconductor-related industries. Revenue fromelectronics-related equipment and installation grew significantly, reflecting the completion of large-scale projects.
In the energy-related field, revenue from liquid petroleum gas (LPG) jumped substantially year on year due
to a higher sales price following an increase in the import price.
As a result, in the Gas Business in Japan, revenue increased 5.2% year on year to ¥78,003 million, while
segment income rose 19.9% to ¥7,283 million.

2

Gas Business in the United States
In the industrial gas-related business, there was a large contribution to revenue from the consolidation of abusiness acquired from Air Liquide Group as a subsidiary since September 2016. In the existing business,revenue from packaged gases declined, while revenue from bulk gas rose, due partly to increased shipments ofcarbon dioxide gas.
In the electronics-related field, revenue from electronics-related equipment and installation increased.
As a result, in the Gas Business in the United States, revenue increased 28.5% year on year to ¥41,776
million, and segment income rose 53.7% to ¥3,124 million.
Gas Business in Asia & Oceania
In the industrial gas-related field, revenue declined in Singapore and Malaysia. However, the consolidation ofSupagas Holdings Pty Ltd in Australia as a subsidiary of the Company in December 2016 contributed to businessresults.
In the electronics-related field, revenue from electronic materials gases and electronics-related equipment andinstallation increased significantly year on year, due to growth in demand mainly in Taiwan.
As a result of the above, in the Gas Business in Asia & Oceania, revenue increased 23.2% year on year to¥23,857 million, and segment income rose 61.6% to ¥2,020 million.
Thermos & Other Businesses
In the Thermos & Other Businesses, although sales of vacuum insulated portable mugs and tumblers were firm,
inbound demand was not as strong as in the same period a year earlier. Consequently, revenue declined year onyear.
As a result, in Thermos & Other Businesses, revenue decreased 2.5% year on year to ¥7,224 million, while
segment income decreased 24.6% to ¥2,208 million.

6.

Segment information
The TNSC Group conducts gas businesses in Japan and overseas, mainly for customers in the steel, chemical,and electronics 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 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 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

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, FYE2017 (April 1, 2016 – June 30, 2016)(¥ million)
Gas
Businessin Japan

Gas
Businessin theUnitedStatesGas
Businessin Asia &Oceania

Thermos& Other
Businesses

74,15332,505

19,369

7,408

1,513

1,889

104

331

Adjustments(Note 1)

Amounts on
theConsolidated
Statements ofIncome

133,436―

133,436

3,838(3,838)―

Total

Revenue(1) Revenue toexternal customers(2) Revenue frominter-segment
transactions andtransfers

Total
75,66734,394
19,473
7,739
137,274(3,838)133,436
Segment profit
6,072
2,032
1,2502,928
12,284(158)
12,126(Note 2)
Notes:
1. The ¥158 million negative adjustment for segment income is comprised of ¥243 million of intersegment eliminations andcompanywide expenses of ¥401 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 reportable segment.
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).

First Quarter, FYE2018 (April 1, 2017 – June 30, 2017)(¥ million)
Gas
Businessin Japan

Gas
Businessin theUnitedStatesGas
Businessin Asia &Oceania

Thermos& Other
Businesses

78,003

41,77623,857

7,224

2,646

2,207

416

309

Adjustments(Note 1)

Amounts on
theConsolidated
Statements ofIncome150,861―

150,861

5,579(5,579)―TotalRevenue(1) Revenue toexternal customers(2) Revenue frominter-segment
transactions andtransfers

Total
80,65043,98324,273
7,533
156,441(5,579)150,861
Segment profit
7,283
3,124
2,020
2,208
14,637(599)
14,037(Note 2)
Notes:
1. The ¥599 million negative adjustment for segment income is comprised of ¥268 million of intersegment eliminations andcompanywide expenses of ¥331 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 reportable segment.
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).

4(2) Reconciliation of segment income with income before income taxes(¥ million)
First Quarter of FYE2017(April 1, 2016 to June 30, 2016)

Segment income

12,126

Gain on sales of noncurrent assets
Operating profit
Financial revenue
Financial expenses
Profit before income taxes

14,037201

299

12,32814,337641

642(1,266)(1,355)

11,703

5First Quarter of FYE2018(April 1, 2017 to June 30, 2017)13,624