August 10, 2011
Taiyo Nippon Sanso Corporation

Consolidated Financial Performancefor the First Quarter of Fiscal Year 2012
(Based on Japan GAAP)

1. Financial results for the first quarter (April 1- June 30, 2011)(1) Operating results
Net salesFirstquarter ofFY2012Firstquarter ofFY2011

Operating income

Ordinary income

Net income(¥ million)

YoY
Change(¥ million)

YoYChange(¥ million)

YoYChange(¥ million)

YoY
Change116,268

(0.6)

7,636

(17.9)

8,086(13.8)

3,325(36.8)

117,005

21.1

9,304

84.5

9,381

98.2

5,261

100.7

Note: Comprehensive income
First quarter of FY2012: ¥4,939 million (up 19.0%)
First quarter of FY2011: ¥2,255 million (-%)

First quarter of FY2012First quarter of FY2011

Earnings per
share (Yen)
8.33
13.16

Diluted earnings per
share (Yen)-Net assets
208,093
207,416

Equity ratio (%)
31.5
31.2

(2) Financial position (¥ million)
First quarter of FY2012
FY2011

Total assets
612,661
617,676

Notes: Equity
First quarter of FY2012: ¥193,075 million
FY2011 full term: ¥192,571 million

12. Forecasts for business operations for FY2012 (full term; April 1, 2011 – March31, 2012)(¥1 million)
Net sales

FY2012(first half)
FY2012(full term)

Operatingincome

Ordinary income

Net incomeEarnings
per share(¥ million)

YoYChange(¥ million)

YoYChange(¥ million)

YoYChange(¥ million)

YoY
Change(Yen)

239,000

0.7

15,000(16.8)

14,000(21.5)

7,400(27.6)

18.51

493,000

1.9

35,000(1.3)

32,000(6.3)

17,700

39.0

44.28

Note: No revisions have been made to recently announced forecasts.
3. General information relating to the first quarter results
Overall business performance (consolidated basis)
During the first quarter of the fiscal year under review (April 1, 2011 - June 30, 2011),
China and other emerging markets maintained high growth rates despite the slowness ofeconomic recovery in the United States and the sovereign debt crisis in Europe.
Meanwhile, in Japan, there were signs of resurgent domestic consumer demand.
However, the highly appreciated yen combined with direct economic damage from theGreat East Japan Earthquake of March 2011 and subsequent fears of power shortages
cast a shadow over economic prospects.
Against this backdrop, first quarter sales on a consolidated basis declined 0.6%
year-on-year to ¥116,268 million, operating income sank 17.9% to ¥7,636 million andOrdinary income dropped 13.8% to ¥8,086 million. Net income for the quarter fell
36.8% year-on-year to ¥3,325 million. A breakdown of business performance byoperational segment is as follows.
① Industrial Gases Business
Sales of oxygen, nitrogen and argon were all down year-on-year due partly to the impactof the earthquake disaster on core customer industries in Japan (steel and chemicals). Inthe machinery and equipment business, sales in Japan of cutting and welding equipment
and materials rose year-on-year, but air separation plants were down significantly due toa drop-off in major construction projects. Due partly to gains from mergers andacquisitions in the previous fiscal year in North America, overseas sales rose year-onyear.
As a result of the foregoing, sales in the Industrial Gases Business increased
2.9% year-on-year to ¥72,521 million and operating income dropped 11.8% to ¥5,235
million.

2② Electronics Business
The electronics industry enjoyed steady demand from semiconductor manufacturers inKorea, Taiwan and other Asian markets. In Japan, sales of our mainstay electronicmaterials gases were down year-on-year due to lower capacity utilization at major
manufacturers of semiconductors and LCD panels due mainly to the demand slow down.
Likewise, sales of electronics related equipment and installation were down sharply yearon-year. Sales of semiconductor-manufacturing equipment (metal organic chemicalvapor deposition, MOCVD) were also affected by the absence of completed shipments
for large-scale projects during the quarter.
As a result of the foregoing, sales in the Electronics Business declined 10.7%
year-on-year to ¥26,274 million, while operating income fell 50.7% to ¥1.0 billion.
③ Energy Business
Sales of LP gas maintained previous-year levels, despite of lower shipment volumes butwith persistently high import prices.
As a result, sales in the Energy Business increased 0.1% year-on-year to ¥9,288
million, while operating income rose 30.6% year-on-year to ¥502 million.
④ Other Businesses
In the Medical Business, sales rose year-on-year with the earthquake disaster having
only limited impact. Sales of the Thermos Business edged down year-on-year.
As a result, sales in Other Businesses increased 4.6% year-on-year to ¥8,183
million, and operating income dropped 16.4% to ¥888 million.
4. Segment information
Results by operating segment
First Quarter, FY2011 (April 1, 2010 to June 30, 2010)(¥ million)
Industrial
Gases Business
Sales(1) Sales to external
Customers(2) Sales frominter-segment
transactions andtransfers
Total
Operating income

Reportable segment
Electronics
EnergyOther BusinessesBusinessBusiness(Note 1)

Adjustments(Note 2)

Consolidated

Total

70,48329,417

9,278

7,825

117,005-

117,005

470

21

506

723

1,721

(1,721)-

70,954
5,938

29,438
2,029

9,785
384

8,548
1,062

118,726
9,414(1,721)(109)

117,005
9,304

Notes
1. Other businesses include the Medical Business, Thermos Business and real estateoperations.

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2. The ¥109 million negative adjustment for segment earnings comprises ¥7 million ofinter-segment eliminations and companywide expenses of ¥117 million that were notallocated to any particular reporting segment. These companywide expenses relate
principally to basic researches that were not particularly allocated to reporting segments.
Results by operating segment
First Quarter, FY2012 (April 1, 2011 to June 30, 2011)(¥ million)
Industrial
Gases Business
Sales(1) Sales to external
Customers(2) Sales frominter-segment
transactions andtransfers
Total
Operating income

Reportable segment
Electronics
EnergyOther Businesses
BusinessBusiness(Note 1)

Adjustments(Note 2)

Consolidated

Total

72,521

26,274

9,288

8,183

116,268-

116,268

884

13

1,008

673

2,579

(2,579)-73,406
5,235

26,2871,000

10,297502

8,856
888

118,848
7,626(2,579)10116,268
7,636

Notes
1. Other businesses include the Medical Business, Thermos Business. and real estateoperations.
2. The ¥10 million negative adjustment for segment earnings comprises ¥126 million ofinter-segment eliminations and companywide expenses of ¥115 million that were notallocated to any particular reporting segment. These companywide expenses relate
principally to basic researches that were not particularly allocated to reporting segments.
3. (Major assets subject to depreciation and amortization and method of depreciation)
The Company has been using the declining-balance method for calculating depreciationof property, plant and equipment other than machinery and plant for lease and structures(not including ancillary facilities) acquired since April 1, 1998. However, from thequarter under review, we have switched to the straight-line method.
In the new Medium-Term Business Plan, TNSC will continue to focus
management resources on growth markets such as electronics and emerging markets.
With regard to mid-sized and small gas supply facilities, our principal items of property,
plant and equipment, we expect stable long-term utilization, with capital investments
focusing on replacement works in anticipation of stable demand from establishedcustomers while we reduce investment targeting facilities for new customers.
Accordingly, we decided it would be more logical to adopt the straight-line method forearnings statements in light of the distribution of expenses at a constant pace for longterm period.
As a result of this change, segment income in the first quarter (consolidatedbasis) has increased by ¥236 million (Industrial Gases), ¥173 million (Electronics), ¥7million (Energy) and ¥22 million (Other). Adjustments increased ¥38 million.

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