February 6, 2014
Taiyo Nippon Sanso Corporation

Consolidated Financial Performancefor the First Three Quarters of Fiscal Year 2014
(Based on Japan GAAP)
1. Financial results for the first three quarters of FY2014 (April 1, 2013 - December 31, 2013)(1) Operating results

Amounts less than ¥1 million are omitted

Net sales¥ million

First threequarters ofFY2014First threequarters ofFY2013

YoY
ChangeOperating income

Ordinary income

YoYChange¥ million¥ million

Net income

YoY
ChangeYoYChange¥ million

380,418

10.8%

22,262

16.7%

22,07622.1%

16,628-%343,464(1.4)%

19,071(15.8)%

18,082(18.9)%(4,622)-%

Note: Comprehensive income
First three quarters of FY2014: ¥37,081 million
First three quarters of FY2013: ¥(4,230) million-%-%
Earnings per
share

Diluted earnings per

Yen

share

Yen

First three quarters of FY2014

41.43

-

First three quarters of FY2013(11.65)-(2) Financial position¥ million

Total assets

Net assets

Equity ratio %First three quarters of FY2014

690,477

290,78238.7

615,820

224,253

33.1(December 31, 2013)
FY2013 (March 31, 2013)

Notes: Equity
As of December 31, 2013: ¥267,402 million
As of March 31, 2013: ¥203,771 million

2. Forecasts for business operations for FY2014 (full term; April 1, 2013 – March 31, 2014)
Net sales¥ million

FY2014(full term)

514,000

YoY
Change

9.7%

Operatingincome¥ million

30,000

YoY
Change20.6%

Ordinary income¥ million

28,800

YoY
Change24.9%

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

Net income¥ million

19,400Earnings
per share

YoY
Change-Yen47.47

3. General information relating to the first three quarter results
Overall business performance (consolidated basis)
During the first three quarters of the fiscal year under review (April 1, 2013 – December 31, 2013),
the global economy remained lackluster overall. Although the United States’ economy gradually
recovered despite government debt problems, these global economic conditions were primarily due
to the slow economic rebound in Europe and the shadow being cast over current economic growthin China, India and other emerging markets. In the Japanese economy, a full-scale recovery failed tomaterialize in spite of indications of an improvement in corporate performance centered on exportindustries, reflecting the weak yen and higher stock prices resulting mainly from monetary easing
policies.
Against this backdrop, net sales for the first three quarters increased 10.8% year on year to¥380,418 million, operating income rose 16.7% to ¥22,262 million, and ordinary income improved
22.1% to ¥22,076 million. Net income for the first three quarters stood at ¥16,628 million,
compared with net loss of ¥4,622 million in the first three quarters of the previous fiscal year.
A breakdown of business performance by operational segment is as follows.
(1) Industrial gas
Sales in Japan of oxygen and nitrogen supplied onsite to the steel industry, a key user of industrial
gasses, increased significantly year on year. However, shipping volume and sales of liquid oxygen,liquid nitrogen and liquid argon decreased year on year because of overall stagnation in industries
where demand for these items exists. Sales of machinery and equipment fell year on year, reflecting
an ongoing decline in orders. In overseas markets, currency exchange rates increased yenequivalents, sales in North America rose year on year, reflecting a rebound in the economy, andsales in Asia grew substantially thanks to new consolidation effects.
As a result, sales in the Industrial gas segment increased 12.2% year on year to ¥248,412
million, but operating income decreased 3.2% to ¥16,311 million due to a rise in costs
accompanying a fall in industrial gas production volume and electricity rate hikes in Japan as well
as deteriorating profitability for machinery and equipment.
(2) Electronics
Despite an ongoing weakness in demand in the electronics industry, signs of a rebound in certain
sectors became apparent. Accordingly, sales of electronic materials gases, electronics-related
equipment and installations, and semiconductor manufacturing equipment (MOCVD) rose slightly
compared with the corresponding period of the previous fiscal year.
As a result, sales in the Electronics segment increased 5.2% year on year to ¥73,156
million, and the segment posted operating income of ¥3,409 million compared with an operating
loss of ¥552 million in the same period of the previous fiscal year.
(3) Energy
Regarding LP gas, consumer demand declined amid higher-than-average temperatures throughout
the spring and summer. However, sales price hikes in response to high purchasing costs caused
mainly by the weak yen contributed to increases in sales. Earnings declined primarily due to a drop2

in the volume of consumer-use LP gas.
As a result, sales in the Energy segment increased 7.2% year on year to ¥29,928 million,
but operating income decreased 18.5% to ¥905 million.
(4) OtherIn the Medical Business, medical device sales increased significantly mainly due to the contributionof sales by Pacific Medico Co., Ltd., which was purchased in October 2013. However, the volume
and sales of medical-use oxygen decreased year on year. Sales in the Thermos Business jumped
substantially year on year because of strong sales mainly of sports-use vacuum bottles.
As a result, sales in the Other segment increased 17.8% year on year to ¥28,921 million,
and operating income climbed 0.9% to ¥2,569 million.
4. Note for material changes in shareholders’ equity
Based on a resolution passed at a meeting of the Board of Directors held on September 26, 2013,
the Company issued new shares (30,000,000 shares of the Company’s common stock) and disposedof treasury shares (15,096,000 of the Company’s common stock) by third-party allotment to theallottee, Mitsubishi Chemical Holdings Corporation. The payment procedures were completed on
October 15, 2013.
As a result, during the first three quarters of the fiscal year under review, stated capital andcapital surplus increased by ¥10,305 million and ¥11,568 million, respectively, while treasury
shares decreased by ¥9,107 million. As of December 31, 2013, stated capital, capital surplus andtreasury shares totaled ¥37,344 million, ¥56,478 million and ¥98 million, respectively.
5. Segment information(1) First Three Quarters, FY2013 (April 1, 2012 to December 31, 2012)
Industrialgas
Sales(1) Sales toexternal
Customers(2) Sales frominter-segment
transactions andtransfers

Reportable segment
Electronics
EnergyOther(Note 1)

Total¥ million
Adjustments Consolidated(Note 2)

221,474

69,52027,90824,560343,464―

343,464

1,233

111

1,417

1,964

4,726

(4,726)―

Total

222,707

69,631

29,326

26,525348,190(4,726)343,464

Operatingincome (loss)[Segmentearnings (loss)]

16,857

(552)

1,111

2,546

19,962(891)

19,071Notes
1. The Other segment includes the Medical Business, the Thermos Business and real estate operations.
2. The ¥891 million negative adjustment for segment earnings (loss) comprises ¥188 million ofinter-segment eliminations and companywide expenses of ¥1,080 million that were not allocated to any
particular reportable segment. These companywide expenses relate principally to basic researches that werenot particularly allocated to reportable segments.
3(2)First Three Quarters, FY2014 (April 1, 2013 to December 31, 2013)
Industrialgas
Sales(1) Sales toexternal
Customers(2) Sales frominter-segment
transactions andtransfers
Total
Operating income[Segmentearnings]

Reportable segment
Electronics
EnergyOther(Note 1)

Total¥ million
Adjustments Consolidated(Note 2)

248,41273,15629,92828,921

380,418―

380,418

1,347

83

1,635

2,502

5,568

(5,568)―249,759
16,311

73,2403,409

31,563905

31,4232,569

385,987
23,195(5,568)(933)

380,418
22,262Notes
1. The Other segment includes the Medical Business, the Thermos Business and real estate operations.
The ¥933 million negative adjustment for segment earnings comprises ¥274 million of inter-segment
eliminations and companywide expenses of ¥1,207 million that were not allocated to any particular
reportable segment. These companywide expenses relate principally to basic researches that were notparticularly allocated to reportable segments.

6. Important subsequent events(1) Enforcement of early retirement incentive program
The Company has resolved to enforce an early retirement incentive program at a meeting of theBoard of Directors held on January 23, 2014.
(a) Reason for enforcement
Amid severe market conditions, the Company will cut costs by implementing structural reforms andvarious measures in order to achieve sustained growth. As a part of these efforts, the Company has
resolved to enforce the early retirement incentive program, review each employee’s career plan, andprovide them with options to achieve these plans.
(b)Overview of program
Eligible employees:

Number to be admitted:
Application period:
Retirement date:
Benefits:

TNSC employees who, as of March 31, 2014, have more than 10years of continuous service and are at least 40 years of age andless than 60 years of age
About 100 employees
February 26, 2014 to March 10, 2014
April 30, 2014
The retiree will be paid the prescribed retirement allowance as
involuntary retirement with special incentives. Further,
outplacement support will be provided through an outside
agency for those who request it.

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(c)Impact on earnings
In the fiscal year ending March 31, 2014, the Company expects to record, as an extraordinary
loss, expenses including extra severance pay incurred due to the enforcement of special
preferential treatment for early retirement. However, because the number of applicants iscurrently unknown, the Company has not yet confirmed what impact this will have on its
financial position or operating results.
(2) Resolution to issue domestic straight bonds
The Company resolved to issue domestic straight bonds at a meeting of the Board of Directors heldon January 23, 2014. An overview is as follows.
(a)Bond class:(b)Total amount of offering:(c)Denomination of each bond:(d)Upper interest rate limit:(e)Redemption method:(f)Redemption term:(g)Interest payment method:(h)Payment amount:(i)Offering period:(j)Use of proceeds:(k)Other:Domestic unsecured straight bond
Under ¥25 billion (however, bonds can be issued inmultiple allotments)¥100 million
Fixed interest rates; +1.0% of the actual yield on
government bonds corresponds with the bondredemption period
Bullet repayment on the maturity dateWithin seven years
Deferred payment twice per year (every six months)
100% of the denomination of each bondJanuary 24, 2014 – March 31, 2014
Bond redemptions, loan repayments, commercial paper
redemptions, capital expenditures, and financial investments
Decisions on issuance date, interest rates, total amount ofbond offerings, redemption period and all other necessary
bond-related items are at the discretion of the president andrepresentative director within the bounds of the aforementioned
items

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