November 2, 2010
Taiyo Nippon Sanso Corporation
Notice of Revised Business Performance Forecast
On the basis of the Company’s recent business performance, Taiyo Nippon Sanso
hereby revises its business performance forecasts announced on May 14, 2010, as
shown below.
1. Business performance forecast on a consolidated basis
Revised consolidated business performance forecast for the first half of FY2011(April 1 to Sept. 30, 2010)
OperatingincomeNet sales

RecurringincomeNet income

Earnings pershare(¥ million)(¥ million)(¥ million)(¥ million)(Yen)

Previous forecast (A)230,000

15,00014,2008,000

20.01

Current forecast (B)237,000

18,00017,800

10,20025.51

Change (B-A)

7,000

3,000

3,600

2,200

Percentage change (%)

3.0

20.0

25.4

27.5

Reference: Figures for thefirst half of FY2010

204,157

12,761

12,3586,828

No revisions were made to consolidated business performance forecast for
FY2011 full term (April 1, 2010 to March 31, 2011)
Reasons for Revision
We have revised upward our previous forecasts of business performance for the firsthalf of FY2011 in light of a recovery in demand from our customer industries inJapan, as a result of which the Company’s business performance on a nonconsolidated basis has been better than expected. The Company’s consolidated
subsidiaries have also been posting a solid performance. As a result, we now expect
net sales, operating income, recurring income, and net income to exceed the previousforecasts.
With regard to the Company’s consolidated business performance for the FY2011
full term, however, we have decided to make no change to our previous forecasts
issued in May. This decision is based on the fact that the Company’s U.S. subsidiaries

117.08have been posting business results below our initial forecasts owing to the dull trendof the United States economy, as yet, to realize a fully fledged recovery, as well as
the uncertainty of demand trends among the Company’s principal user industries inJapan.

2. Business performance forecast on a non-consolidated basis
Revised business performance forecast on a non-consolidated basis for the firsthalf of FY2011 (April 1 to Sept. 30, 2010)
OperatingincomeNet sales

RecurringincomeNet income

Earnings per share(¥ million)(¥ million)(¥ million)(¥ million)(Yen)

Previous forecast (A)113,000

7,200

10,400

7,400

18.50

Current forecast (B)116,000

9,800

13,600

9,500

23.75

Change (B-A)

3,000

2,600

3,200

2,100

Percentage change (%)

2.7

36.1

30.8

28.4

Reference: Figures for the firsthalf of FY2010

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―

―

Revised business performance forecast on a non-consolidated basis for FY2011
full term (April 1, 2010 to March 31, 2011)
OperatingincomeNet sales

RecurringincomeNet income

Earnings per share(¥ million)(¥ million)(¥ million)(¥ million)(Yen)

Previous forecast (A)233,000

15,50018,00012,00030.00

Current forecast (B)

238,000

17,50020,50013,70034.26

Change (B-A)

5,000

2,000

2,500

1,700

Percentage change (%)

2.1

12.9

13.9

14.2

224,742

14,315

15,89910,595

Reference: Figures for FY2010

Reasons for Revision
Regarding the Company’s business performance on a non-consolidated basis for the
first half of FY2011, favorable shipments of gases were recorded during the period,
principally to clients in the steel, chemicals, and electronics industries. As a result, net

226.49sales, operating income, recurring income, and net income are all expected to surpass
the previous forecasts.
Regarding the full-term forecasts, however, while sales of LP gas are projected toincrease due to higher selling prices, the direction of demand trends for theCompany’s main customer industries remains unclear. In light of this, we have taken
the decision to stay with our initial forecasts with respect to business performance inthe third and fourth quarters. At the earnings level, while we expect an improvement
over the previous forecasts, the margin of increase is likely to be less than in the firsthalf. This is based on a projected increase in expenses in the third and fourth quarters
over the initial forecast, as a result of a number of factors including the timing of theexpense reporting.
Note: The above business performance forecasts are based on information available tothe management of the Company as of the time of writing, and may differ from actual
performance figures owing to a number of factors that may materialize subsequent tothis announcement.

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