November 2, 2016
Taiyo Nippon Sanso Corporation

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

1. Financial results for the first half of FYE2017 (April 1, 2016 – September 30, 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 half ofFYE2017

268,782(5.5)

25,945

6.5

24,534

4.2

17,327

9.8

16,4699.6(5,426)―

First half ofFYE2016

284,355―

24,363―23,540―15,784―15,029―7,485―

Note: Core operating income
First half of FYE2017: ¥ 25,750 million [14.2%]
First half of FYE2016: ¥ 22,550 million [―%]
Core operating income is calculated as operating income excluding certain gains and expenses attributable to non-recurring factors (non-recurringitems).

Basic earnings
per share (yen)First half ofFYE2017
First half ofFYE2016

Diluted earnings
per share (yen)38.06―34.73―(2) Financial position
Total assets(¥ million)

Total equity(¥ million)

Equity attributableto owners of theparent (¥ million)

Equity attributableto owners of theparent ratio (%)

First half of FYE2017(September 30, 2016)

818,641

333,470

310,32237.9

FYE2016 (March 31, 2016)

787,505

344,866

320,457

40.7

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

TermendYenYenYenYenstFYE2016
FYE2017FYE2017 (est.)

nd―

7.00

―

9.00

Total
Yen―

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

Full term(¥ million)%

570,000(4.1)(¥ million)

52,000

Income before
income taxes%(¥ million)

6.3

48,700%4.6

Net income
attributable to ownersof the parent(¥ million)

30,000%

Basicearnings
per share(Yen)

3.369.32

Notes: Revisions have been made to recently announced forecasts.
Please see the press release titled “Notice Regarding Earnings Forecast Revisions” issued today (November 2, 2016) for details on revisions
to consolidated earnings forecasts.
Core operating income for FYE2017: ¥52,000 million [9.6%]
Changes from 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 half results
In the first half of the fiscal year under review (from April 1, 2016 to September 30, 2016), the global economy
continued to see excessive investment and economic deceleration trends in China, with the impact of these trends
spreading to other neighboring countries in Asia. In the United States, the economy grew steadily, supported by arecovery in the labor market and growth in personal consumption, even though there were concerns about theimpact of economies in other parts of the world slowing. In Japan, although employment and income levels
continue to improve, personal consumption showed sluggish growth. Compounded by the yen’s appreciation since
the beginning of the year and other factors, the Japanese economy has been treading water following a trend ofimprovement.
Against this backdrop, the Taiyo Nippon Sanso Group (TNSC Group) achieved the following results for thefirst half of the fiscal year under review. Revenue on a consolidated basis decreased 5.5% year on year to¥268,782 million, operating income increased 6.5% to ¥25,945 million, and net income attributable to owners of
the parent increased by 9.6% to ¥16,469 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 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 coreproduct, declined year on year, mainly reflecting a decline in sales of products to the key industries of steel andchemicals.
In the electronics-related field, revenue from equipment and installation work, including semiconductor
manufacturing equipment, increased year on year, mainly owing to steady growth in sales.
In the energy-related field, revenue from liquid petroleum gas (LPG) dropped substantially year on year due toa fall in the import price.
As a result, in the Gas Business in Japan, revenue decreased 2.0% year on year to ¥152,435 million, while
segment income rose 13.5% to ¥14,190 million.
Gas Business in the United States
In the industrial gas-related business, sales of bulk gas were favorable, supported partly by the positive impact ofM&A activity, in addition to increased shipments of carbon dioxide gas, but sales of hard goods decreasedsignificantly.
In the electronics-related field, shipments of electronic materials gases increased. In addition, as a result of theyen's continued appreciation, there was a significant decrease in revenue due to the impact of foreign exchangetranslation.
As a result, in the Gas Business in the United States, revenue decreased 15.6% year on year to ¥65,134 million,
and segment income rose 1.9% to ¥4,743 million.

2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 the impact of foreign exchange translation.
As a result of the above, in the Gas Business in Asia & Oceania, revenue decreased 0.1% year on year to¥37,757 million, and segment income rose by 16.8% to ¥2,578 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 2.3% year on year to ¥13,455 million, while
segment income increased 24.0% to ¥5,060 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(November 2, 2016).
7. Segment information
The 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 establishedthe following four reportable segments: Gas Business in Japan, Gas Business in the United States, Gas Business inAsia & Oceania, and Thermos & Other Businesses.
The principal products and services included in the four segments are shown in the table below.
Business segment

Main products and services

Gas Business in Japan
Gas Business in the UnitedStates
Gas Business in Asia &Oceania
Thermos & OtherBusinesses

Oxygen, nitrogen, argon, carbon dioxide, helium, hydrogen, acetylene, gas- related equipment,
specialty gases (electronic materials gases, pure gases, etc.), electronics-related equipment andinstallation, 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.
(1) Figures of revenue and income (loss) by reportable segment
First Half, FYE2016 (April 1, 2015 – September 30, 2015)(¥ million)
Gas
Businessin Japan

Gas
Businessin theUnitedStatesAdjustments(Note 1)

Amounts ontheConsolidated
Statements ofIncome

Gas
Business
in Asia &Oceania

Thermos& Other
Businesses

155,617

77,18537,782

13,771

284,355―

284,355

3,804

3,238

1,150

575

8,769

―

38,933

14,346

293,125(8,769)159,42180,423

12,498

4,654

2,207

4,081

23,441

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

3(8,769)(891)

284,355
22,550Notes:1. The ¥891 million negative adjustment for segment income is comprised of ¥55 million of intersegment eliminations and companywide
expenses of ¥836 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 or losses attributable
to non-recurring factors (non-recurring items).

First Half, FYE2017 (April 1, 2016 – September 30, 2016)(¥ million)
Gas
Businessin Japan

Gas
Businessin theUnitedStatesAdjustments(Note 1)

Amounts on
theConsolidated
Statements ofIncomeGas
Business
in Asia &Oceania

Thermos& Other
Businesses

152,435

65,13437,757

13,455

268,782―

268,782

3,292

3,700

454

630

8,078

―

38,211

14,086

276,860(8,078)

155,727

68,835

14,190

4,743

2,578

5,060

26,573

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

(8,078)

268,782(823)

25,750Notes:
1. The ¥823 million negative adjustment for segment income is comprised of ¥47 million of intersegment eliminations and companywide
expenses of ¥776 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 or losses
attributable to non-recurring factors (non-recurring items).

Reconciliation of segment income with income before income taxes is as follows.
(¥ million)
First Half of FYE2016(April 1, 2015 to September 30,2015)

First Half of FYE2017(April 1, 2016 to September 30,2016)

Segment income

22,55025,750Gain on step acquisition
Gain on sales of noncurrent assets
Operating income
Financial revenue
Financial expenses
Income before income taxes

1,813――

195

24,36325,945888

808(1,711)(2,220)23,540

4

24,534