May 10, 2017
Taiyo Nippon Sanso Corporation

Consolidated Financial Performancefor Fiscal Year 2017
(Based on IFRS)(Amounts less than ¥1 million are omitted)

1.

Financial results for the FYE2017 (April 1, 2016 – March 31, 2017)(1) Operating results(Percentages indicate year-on-year change)

Core operating
incomeRevenue

OperatingincomeNet income
attributable toowners of theparent

Net income

Total
comprehensive
income(¥ million)%(¥ million)%(¥ million)%(¥ million)%(¥ million)%(¥ million)%

FYE2017581,586(2.2)

54,736

15.3

53,6649.7

36,212

18.7

34,74019.7

41,807587.2

FYE2016

594,421―47,456―48,925―30,506―29,030―

6,083―(Reference) Income before income taxes FYE2017: ¥50,176 million (7.7%) FYE2016: ¥46,575 million (-%)
Core operating income is calculated as operating income excluding certain gains and expenses attributable tonon-recurring factors (non-recurring items).
Return on equity
Income before
attributable toincome taxes to total
owners of the parentassets ratio (%)(%)
FYE2017
80.28
10.3
5.9―
FYE201667.089.15.9―(Reference) Share of profit (loss) of associates and joint ventures accounted for using the equity method
FYE2017: ¥2,397 million
FYE2016: ¥2,526 million
Basic earnings
per share (yen)Core operating
income torevenue ratio (%)

Diluted earnings
per share (yen)9.4
8.0(2) Financial position

Total assets(¥ million)

Total equity(¥ million)

Equityattributable toowners of theparent(¥ million)

Equityattributable toowners of theparent ratio (%)

Equityattributable toowners of theparent per share(yen)FYE2017 (March 31, 2017)924,281

376,862

351,57638.0

812.40FYE2016 (March 31, 2016)

787,505

344,866

320,45740.7

740.48(3) Consolidated cash flows
Cash flows fromoperating activities(¥ million)

Cash flows frominvesting activities(¥ million)

Cash flows fromfinancing activities(¥ million)

Balance of cash andcash equivalents atterm-end(¥ million)

FYE2017

74,596(147,082)

80,77752,857FYE2016

73,347(74,252)(2,385)49,216

12.

Dividends
Annual Dividend

End ofEnd ofEnd ofTerm end
1st quarter 2nd quarter 3rd quarterYenYen

Yen

Yen

7.00

―

9.00

16.00

¥ million
6,926―

9.00

―

11.00

20.00

8,658―

11.00

―

11.00

22.00

FYE2016―

FYE2017
FYE2018 (est.)

3.

Yen

Total

Ratio ofdividends toequity
Total amount Payout ratio
attributable toof dividends (consolidated)owners of theparent(consolidated)
%

%

23.9

2.2

24.9

2.6

27.6

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

Core operating
incomeRevenue(¥ million)

Operatingincome

Net incomeNet income
attributable toowners of theparent%(¥ million)%(¥ million)%(¥ million)%(¥ million)%

Basic earnings
per share(yen)(Yen)

First half ofFYE2018

300,000

11.6

26,800

4.1

27,3005.2

16,700(3.6)

15,900

(3.5)

36.74

Full term

620,000

6.6

56,5003.2

57,0006.2

36,5000.8

34,500

(0.7)

79.72

(Reference) Income before income taxes First half of FYE2018: ¥25,100 million (2.3%) FYE2018 full term: ¥52,500 million(4.6%)* 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 fiscal
year under review. In addition, the consolidated financial statements for 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.

4. Overview of Business Results for the Fiscal Year Under Review(1) Overview
In the fiscal year under review (from April 1, 2016 to March 31, 2017), the global economy saw signs ofimprovement 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 firm corporate business conditions
and an improving employment picture. The Japanese economy saw a return to stability in the stock markets, alongwith showing signs of improving corporate earnings. With employment and income levels continuing to improve,
economic conditions have been trending firmly.
Against this backdrop, the Taiyo Nippon Sanso Group (TNSC Group) achieved the following results for thefiscal year under review. Revenue on a consolidated basis decreased 2.2% year on year to ¥581,586 million, core
operating income rose 15.3% to ¥54,736 million, operating income increased 9.7% to ¥53,664 million, and net
income attributable to owners of the parent increased by 19.7% to ¥34,740 million.
Core operating income is calculated as operating income excluding certain gains and expenses attributable tonon-recurring factors (non-recurring items).
The Taiyo Nippon Sanso Group has adopted International Financial Reporting Standards (IFRS) from thefiscal year under review. In addition, the consolidated financial statements for the previous fiscal year arepresented based on IFRS.

2

(2) Overview of Business Performance by Reportable Segment
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, declined year on year, mainly reflecting a decline in the unit sales prices of separated gases supplied
directly via pipeline to the key industries of steel and chemicals.
In the gas-related equipment business, revenue declined sharply year on year due to the absence of the strong
sales of hydrogen stations recorded in the previous fiscal year. However, revenue from air separation units
increased steadily due to growth in demand.
In the electronics-related field, revenue rose significantly year on year due to increased demand for electronicmaterials gases.
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 ¥321,416 million, while
segment income rose 5.7% to ¥29,450 million.
Gas Business in the United States
In the industrial gas-related business, revenue from bulk gas rose substantially, due partly to increased shipmentsof carbon dioxide gas, in addition to the consolidation of a business acquired from Air Liquide Group as asubsidiary since September 2016, despite a decline in revenue from hard goods.
In the electronics-related field, revenue from electronic materials gases decreased.
In addition, as a result of the yen's continued appreciation, there was a decrease of ¥14.2 billion in revenue dueto the impact of foreign exchange translation.
As a result, in the Gas Business in the United States, revenue decreased 1.5% year on year to ¥147,274 million,
and segment income rose 30.7% to ¥12,074 million.
Gas Business in Asia & Oceania
In the industrial gas-related field, revenue trended favorably in the Philippines and Vietnam, but declined inSingapore and Malaysia. Apart from that, the consolidation of Air Products Industry Co., Ltd. in Thailand andRenegade Gas Pty Ltd in Australia as subsidiaries of the Company in May and July 2015, respectively, along withthe consolidation of Supagas Holdings Pty Ltd in Australia as a subsidiary of the Company in December 2016,
contributed significantly to revenue growth.
In the electronics-related field, revenue from electronic materials gases and equipment in Taiwan, China, andSouth Korea increased slightly year on year.
In addition, as a result of the yen's continued appreciation, there was a decrease of ¥9.1 billion in revenue dueto the impact of foreign exchange translation.
As a result of the above, in the Gas Business in Asia & Oceania, revenue decreased 3.9% year on year to¥85,875 million, and segment income rose 71.6% to ¥5,165 million, mainly reflecting the absence of impairment
losses on gas production facilities in Singapore recorded in the previous fiscal year.
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 1.9% year on year to ¥27,018 million, while
segment income increased 11.3% to ¥10,017 million.
5. Segment information
The TNSC Group conducts gas businesses in Japan and overseas, mainly for customers in the steel, chemical, andelectronics 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 stainless steel vacuum bottles, andconducts 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.

3

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

Oxygen, nitrogen, argon, carbon dioxide, helium, hydrogen, acetylene, gasrelated equipment, specialty gases (electronic materials gases, pure gases, etc.),
electronics-related equipment and installation, semiconductor manufacturing
equipment, cutting and welding equipment, welding materials, plants andmachinery, liquid petroleum gas (LPG) and related equipment, medical-use
gases (oxygen, nitrous oxide, etc.), medical equipment, stable isotopes

Gas Business in theUnited States
Gas Business in Asia &Oceania
Thermos & OtherBusinesses

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
FYE2016 (April 1, 2015 – March 31, 2016)(¥ million)
Gas
Businessin Japan

Gas
Businessin theUnitedStatesAdjustments(Note 1)

Amounts ontheConsolidated
Statements ofIncomeGas
Businessin Asia &Oceania

Thermos& Other
Businesses

Revenue toexternal customers

327,952

149,553

89,37527,541

594,421―594,421

Revenue frominter-segment
transactions andtransfers

7,805

6,660

3,615

1,166

19,247(19,247)―

335,758

156,21392,99028,707

613,669(19,247)

594,42127,850

9,241

3,009

9,001

49,102(1,646)47,456

Depreciation andamortization

15,865

16,872

6,364

708

39,812(115)

39,696

Impairment loss

―

―

1,386

―

1,386

―

1,386

Share of profit(loss) of associates
and joint ventures
accounted forusing the equity
method

(22)

(177)

(106)

2,831

2,525

0

2,526

Total

Revenue

Total
Segment income(Note 2)Other items

Notes:
1. The ¥1,646 million negative adjustment for segment income is comprised of ¥56 million of intersegment
eliminations and companywide expenses of ¥1,703 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).

4

FYE2017 (April 1, 2016 – March 31, 2017)(¥ million)
Gas
Businessin Japan

Gas
Businessin theUnitedStatesAdjustments(Note 1)

Amounts onthe
Consolidated
Statements ofIncomeGas
Business
in Asia &Oceania

Thermos& Other
Businesses

Revenue toexternal customers

321,416

147,274

85,87527,018581,586―

581,586

Revenue frominter-segment
transactions andtransfers

8,160

8,473

1,081

1,349

19,065(19,065)―

329,576

155,748

86,95728,368600,651(19,065)

581,586

29,45012,0745,165

10,01756,707(1,970)54,736

Depreciation andamortization

15,627

17,557

5,964

942

40,091(43)40,048

Impairment loss

4―

85―

89―

89

Share of profit(loss) of associates
and joint ventures
accounted forusing the equity
method104(178)

44,412

4,341

(0)

4,341

TotalRevenue

Total
Segment income(Note 2)Other items

Notes:
1. The ¥1,970 million negative adjustment for segment income is comprised of ¥357 million of intersegment
eliminations and companywide expenses of ¥1,613 million that were not allocated to any particular
reportable segment. These companywide expenses related principally to basic research expenses that werenot 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).

(2) Reconciliation of segment income with income before income taxes(¥ million)
FYE2016

FYE2017(April 1, 2015 to March 31, 2016)(April 1, 2016 to March 31, 2017)

Segment income
Gain on sales of noncurrent
assetsGain on step acquisition
Share of profit (loss) ofassociates and joint ventures
accounted for using the equity
methodImpairment loss
Operating incomeFinancial revenue
Financial expenses
Income before income taxes

547,45654,736

－

1,012

1,813

－

－

(1,943)

(344)

(141)

48,92553,664

1,316

1,429

(3,665)(4,918)46,57550,176