November 4, 2015
Taiyo Nippon Sanso Corporation

Consolidated Financial Performancefor the First Half of Fiscal Year 2016
(Based on Japan GAAP)
1. Financial results for the first half (April 1, 2015 - September 30, 2015)(1) Operating results

Net salesFirst half ofFY2016First half ofFY2015

Operating income(Amounts less than ¥1 million are omitted)
Net income
Ordinary income
attributable to ownersof the parent(¥ million)

YoYChange(¥ million)

YoY
Change(¥ million)

YoYChange(¥ million)

YoY
Change285,697

6.2%

18,95815.3%

19,40817.2%

13,30334.2%

268,911

7.7%

16,43814.2%

16,564

16.7%

9,910

(19.0)%

Note: Comprehensive income
First half of FY2016: ¥8,577 million [(8.8)% ]First half of FY2015: ¥9,409 million [(68.8)% ]Earnings pershare (Yen)

Diluted earnings
per share (Yen)First half ofFY2016First half ofFY2015

30.74―22.90―(2) Financial position
Total assets(¥ million)
First half of FY2016(September 30, 2015)
FY2015 (March 31, 2015)

Net assets(¥ million)

Equity ratio (%)

809,513347,984

39.9782,357

341,20740.5

Note: Equity
As of September 30, 2015: ¥322,668 million
As of March 31, 2015:¥317,244 million
2. Dividends
Annual Dividend

FY2015FY2016FY2016 (est.)

stEnd of 1 quarternd

End of 2 quarterEnd of 3rd quarter

Term end

Yen

Yen

Yen

Yen

―
―

6.00
7.00

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

Total

―

7.00

Yen
13.00

―

7.00

14.00

3. Forecasts for business operations for FY2016 full term (April 1, 2015 – March 31, 2016)(%: YoY)
Net sales

Full term

Operating income

Ordinary incomeNet income
attributable toowners of the parent(¥ million)

YoYChange(¥ million)

YoYChange(¥ million)

YoYChange(¥ million)

YoY
Change655,000

17.1

42,50020.4

41,30020.5

27,00030.0

Earnings
per share(Yen)

62.39

Note: No revisions have been made to recently announced forecasts.
4. General information relating to the first half results
From the first quarter of the fiscal year under review, the Company has applied the provisions set forthin Article 39 of the Revised Accounting Standard for Consolidated Financial Statements (ASBJ
Statement No. 22, September 13, 2013), changing the presentation wording from “net income” to “netincome attributable to owners of the parent” and from “minority interests” to “non-controllinginterests.”
Overall business performance (consolidated basis)
In the first half of the fiscal year under review (from April 1, 2015, to September 30, 2015), the global
economy saw growth in China slow down and sluggish growth in other parts of Asia. Meanwhile anexpansionary trend driven by internal demand continues in the United States, even though concerns aremounting that it may also slow in line with other overseas economies, and as a consequence of thedollar’s appreciation. The Japanese economy has seen an improvement in corporate earnings
underscored by the weaker yen and lower oil prices. However, this is also about to plateau as it appears
capital expenditure is slowing and a stagnant mood has set in on exports and industrial production.
Against this backdrop, Taiyo Nippon Sanso Group (TNSC Group) achieved the following results forthe first half of the fiscal year under review. Net sales on a consolidated basis increased 6.2% year onyear to ¥285,697 million, operating income rose 15.3% to ¥18,958 million, ordinary income increased
17.2% to ¥19,408 million, and net income attributable to owners of the parent increased by 34.2% to¥13,303 million.
A breakdown of business performance by reportable segment is as follows.
To reflect more properly the Company's operating results by reportable segment, from the fourth
quarter of the consolidated fiscal year ended March 31, 2015, the Company has changed the method of
allocating certain expenses to a method based on a rational standard appropriate for the actual situation
after a reorganization of each segment. Segment results for the first half of the fiscal year ended March
31, 2015 have been prepared by the method of calculating profit or loss after the reorganization.
In addition, starting from the first half ended September 30, 2015, the reportable segment, Gas
Business in Asia, was renamed the Gas Business in Asia & Oceania. This was only a change in thereportable segment name with no impact on the segment information.

(1) Gas Business in Japan
Sales of air separation gases (oxygen, nitrogen and argon), a core product, declined year on year, mainlyreflecting a decline in demand for the key industries of steel, chemical, and electronics, despite strong
demand in the shipbuilding and transportation equipment-related industries. In addition, sales of plants
fell significantly due to sluggish capital expenditure demand.
Sales of electronic materials gases were lower year on year, tracking falling demand in the LCD paneland semiconductor-related industries.
In the medical field, sales grew year on year, mainly in medical equipment for home use.
Sales of liquid petroleum gas (LPG) dropped substantially year on year due to a drop in the importprice.
As a result, in the Gas Business in Japan, net sales decreased 4.6% year on year to ¥157,893 million,
while operating income rose 3.7% to ¥11,747 million, in part, because of cost reductions in line withfalling oil prices.
(2) Gas Business in the United States
Due to the result of M&A strategies, in addition to the impact of economic recovery in the United Statesand foreign exchange translation effects, sales increased significantly year on year.
As a result, in the Gas Business in the United States, net sales increased 23.9% to ¥77,597 million,
while operating income rose 28.2% to ¥3,445 million.
(3) Gas Business in Asia & Oceania
In the industrial gas-related business, sales increased substantially in Vietnam and the Philippines.
However, it fell year on year in Singapore and Malaysia. Apart from that, the TNSC Group made Air
Products Industry Co., Ltd. in Thailand a consolidated subsidiary in May 2015.
In the electronics-related field, sales of electronic materials gases and equipment grew, supported bycontinuing strong demand in Taiwan, China, and South Korea.
As a result of the above, in the Gas Business in Asia & Oceania, net sales increased 20.1% to¥36,440 million, and operating income rose by 17.8% to ¥1,762 million.
(4) Other Businesses
In the Thermos Business, sales remained strong, particularly of new products, and increased
substantially year on year.
As a result, in Other Businesses, net sales increased 33.0% year on year to ¥13,765 million, andoperating income rose 55.1% to ¥2,751 million.
5. Segment information(1) Figures of sales, earnings or losses, by reportable segment
First Half, FY2015 (April 1, 2014 – September 30, 2014)(¥ million)
Gas
Businessin JapanSales(1) Sales toexternalcustomers(2) Sales frominter-segment
transactions andtransfers
TotalSegment
earnings[Operatingincome]

Reportable segment
Gas
Gas
Other
Business
Business Businesses
in thein Asia
United&States
Oceania

Total

Adjustments(Note)

Amounts on
theConsolidated
Statements ofIncome

165,569

62,64130,351

10,348

268,911－

268,911

2,730

3,487

611

352

7,183

(7,183)－

168,300

66,12930,963

10,701

276,094

268,911

11,332

2,687

1,496

1,773

17,290(7,183)(851)

16,438

Note: The ¥851 million negative adjustment for segment earnings is comprised of ¥68 million ofintersegment eliminations and companywide expenses of ¥782 million that were notallocated to any particular reportable segment. These companywide expenses related
principally to basic research expenses that were not allocated to a particular reportablesegment.
First Half, FY2016 (April 1, 2015 – September 30, 2015)(¥ million)
Gas
Businessin JapanSales(1) Sales toexternalcustomers(2) Sales frominter-segment
transactions andtransfers
TotalSegment
earnings[Operatingincome]

Reportable segment
Gas
Gas
OtherBusinessBusiness Businesses
in thein Asia
United&States
Oceania

Total

Adjustments(Note)

Amounts on
theConsolidated
Statements ofIncome157,893

77,59736,44013,765

285,697－285,697

3,799

2,986

1,150

307

8,244

(8,244)－

161,692

80,58437,591

14,073

293,941

285,697

11,747

3,445

1,762

2,751

19,706(8,244)(747)

18,958

Note: The ¥747 million negative adjustment for segment earnings is comprised of ¥52 million ofintersegment eliminations and companywide expenses of ¥695 million that were notallocated to any particular reportable segment. These companywide expenses related
principally to basic research expenses that were not allocated to a particular reportablesegment.

(2) Impairment Loss on Plant, Property and Equipment and Goodwill by Segment
Material change in the amount of goodwill
TNSC (Australia) Pty Ltd and Renegade Gas Pty Ltd were added to the scope of consolidation of theGas Business in Asia & Oceania. The increase in the amount of goodwill resulting from this was¥11,971 million as of September 30, 2015.
(3) Changes to reportable segments
Renaming of a reportable segment
Starting from the first half ended September 30, 2015, the reportable segment, Gas Business in Asia,
was renamed the Gas Business in Asia & Oceania. This was only a change in the reportable segment
name with no impact on the segment information. Segment information for the previous first half
ended September 30, 2014 has been restated in terms of this new segment name in this report.
Change in method of calculating earnings and losses in reportable segments
To reflect more properly the Company's operating results by reportable segment, from the fourthquarter of the consolidated fiscal year ended March 31, 2015 the Company has changed the methodof allocating certain expenses to a method based on a rational standard appropriate for the actualsituation after a reorganization of each segment.
The "Figures of sales, earnings or losses, by reportable segment" for the first half of the fiscal
year ended March 31, 2015 have been prepared by the method of calculating profit or loss after thereorganization.
As a result, segment income (operating income) for the second period of the previous fiscal year
increased by ¥122 million for the Gas Business in Japan, decreased by ¥33 million for the Gas
Business in the United States, and decreased by ¥89 million for the Gas Business in Asia & Oceania.