November 1, 2017
Taiyo Nippon Sanso Corporation

Consolidated Financial Performancefor the First Half of Fiscal Year Ending March 31, 2018
(Based on IFRS)(Amounts less than ¥1 million are omitted)

1. Financial results for the First Half of FYE2018 (April 1, 2017 – September 30, 2017)(1) Operating results(Percentages indicate year-on-year change)

Core operating
incomeRevenue

Operatingincome

Net income
attributable toowners of theparent

Net income

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

First half ofFYE2018

305,71413.7

29,30513.8

29,60414.1

18,3596.0

17,671

7.3

25,461―First half ofFYE2017

268,782(5.5)

25,75014.2

25,945

6.5

17,327

9.8

16,4699.6(5,426)―(Reference) Income before income taxes
First half of FYE2018: ¥27,681 million [12.8%]
First half of FYE2017: ¥24,534 million [4.2%]
Core operating income is calculated as operating income excluding certain gains and expenses
attributable to non-recurring factors (non-recurring items).
Basic earnings
per share (yen)First half ofFYE2018
First half ofFYE2017

Diluted net income
per share (yen)40.83―38.06―(2) Financial position
Total assets(¥ million)

Total equity(¥ million)

Equity attributableto owners of theparent (¥ million)

Equity attributableto owners of theparent ratio (%)

First half of FYE2018(September 30, 2017)938,315395,768

371,300

39.6

FYE2017 (March 31, 2017)924,281

376,862

351,576

38.0

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2.

Dividends
Annual DividendndEnd of1 quarterEnd of 2quarterEnd of 3rdquarter

Termend

TotalYen

YenYenYenYenstFYE2017
FYE2018
FYE2018 (est.)

―

9.00

―

11.00

―

11.00

20.00

―

11.00

22.00

Note: No revisions have been made to recently announced forecasts.
3.

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

Core operating
incomeRevenue(¥ million)%(¥ million)%

Operating income

Net income
attributable to ownersof the parent(¥ million)(¥ million)

Full term
620,000
6.6
56,5003.2
57,000Note: No revisions have been made to recently announced forecasts.
(Reference) Income before income taxes
FYE2018 full term: ¥52,500 million [4.6%]%

6.2

34,500%(0.7)

Basicearnings
per share(Yen)

79.72

4.

Explanation concerning the appropriate use of forecasts for business operations and other notable matters
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, 2017, to September 30, 2017), the global economy
saw economic expansion in China, underpinned by infrastructure investment led by the Chinese government andother factors, despite concerns about the need to curtail speculative real estate investment and overcapacity in thecountry. In the United States, damage caused by a major hurricane in August had a negative impact on
production activity in the chemicals, oil, coal and certain other sectors. However, economic conditions generally
held firm, supported by improving employment and income levels. In Japan, with an increase in exports
primarily in the automobile and semiconductor-related sectors, there has been an upswing in production activity,and moderate improvement in corporate earnings. Overall, economic conditions have been following a gradual
recovery path.
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 increased 13.7% year on year to¥305,714 million, core operating income rose 13.8% to ¥29,305 million, operating income increased 14.1% to¥29,604 million, and net income attributable to owners of the parent increased by 7.3% to ¥17,671 million.
Core operating income is calculated as operating income excluding certain gains and expenses attributable tonon-recurring factors (non-recurring items).
A breakdown of business performance by reportable segment is as follows.
Segment income represents core operating income.

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Gas Business in Japan
In the industrial gas-related business, revenue from air separation gases (oxygen, nitrogen, and argon), a coreproduct, performed solidly for use primarily in the key industries of steel and chemicals. In addition, revenue
from equipment and plants decreased, reflecting the absence of a large air separation unit project recorded in theprevious fiscal year.
In the electronics-related field, revenue from electronic materials gases trended favorably due to increased
demand from the liquid crystal display (LCD) and semiconductor-related industries.
In the energy-related field, revenue from liquid petroleum gas (LPG) jumped substantially year on year due
to a higher sales price following an increase in the import price.
As a result, in the Gas Business in Japan, revenue increased 3.3% year on year to ¥157,479 million, while
segment income rose 1.0% to ¥14,334 million.
Gas Business in the United States
In the industrial gas-related business, there was a large contribution to revenue from the consolidation of abusiness acquired from Air Liquide Group as a subsidiary since September 2016. In the existing business,revenue from packaged gases declined, while revenue from bulk gas rose, due partly to increased shipments ofcarbon dioxide gas.
As a result, in the Gas Business in the United States, revenue increased 29.5% year on year to ¥84,378 million,and segment income rose 35.4% to ¥6,421 million.
Gas Business in Asia & Oceania
In the industrial gas-related field, revenue declined in Singapore and Malaysia. However, the consolidation ofSupagas Holdings Pty Ltd in Australia as a subsidiary of the Company in December 2016 contributed to businessresults.
In the electronics-related field, revenue from electronic materials gases and electronics-related equipment andinstallation increased significantly year on year, due to growth in demand mainly in Taiwan.
As a result of the above, in the Gas Business in Asia & Oceania, revenue increased 31.2% year on year to¥49,546 million, and segment income rose 87.8% to ¥4,842 million.
Thermos & Other Businesses
In the Thermos & Other Businesses, revenue increased steadily due to solid sales of vacuum insulated portablemugs and tumblers in Japan.
As a result, in Thermos & Other Businesses, revenue increased 6.4% year on year to ¥14,310 million, while
segment income decreased 8.1% to ¥4,649 million.
6.

Segment information
The TNSC Group conducts gas businesses in Japan and overseas, mainly for customers in the steel, chemical,and electronics 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 stainlesssteel vacuum bottles, and conducts 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.
The principal products and services included in the four segments are shown in the table below.
Business segment
Gas Business in Japan
Gas Business in theUnited States
Gas Business in Asia &Oceania
Thermos & OtherBusinesses

Main products and services
Oxygen, nitrogen, argon, carbon dioxide, helium, hydrogen, acetylene, gas- related
equipment, specialty gases (electronic materials gases, pure gases, etc.),
electronics-related equipment and installation, 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

Revenue from inter-segment transactions and transfers is based primarily on prevailing market prices.

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(1) Figures of revenue and income (loss) by reportable segment
First Half, FYE2017 (April 1, 2016 – September 30, 2016)(¥ million)
Gas
Businessin Japan

Gas
Businessin theUnitedStatesAdjustments(Note 1)Amounts on
theConsolidated
Statements ofIncome

Gas
Businessin 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)

Total

155,727

68,835

Segment income(Note 2)

14,190

4,743

2,578

5,060

26,573

Total

Revenue(1) Revenue toexternal customers(2) Revenue frominter-segment
transactions andtransfers(8,078)(823)

268,782
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 reportablesegment. These companywide expenses related principally to basic research expenses that were not allocatedto 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, FYE2018 (April 1, 2017 – September 30, 2017)(¥ million)
Gas
Businessin Japan

Gas
Businessin theUnitedStatesAdjustments(Note 1)

Amounts ontheConsolidated
Statements ofIncome

Gas
Businessin Asia &Oceania

Thermos& Other
Businesses

157,479

84,37849,546

14,310305,714―305,714

6,319

5,012

963

666

12,962―50,51014,977

318,676(12,962)

163,798

89,39014,334

6,421

4,842

4,649

30,248

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

(12,962)(942)

305,714
29,305

Notes:
1. The ¥942 million negative adjustment for segment income is comprised of ¥261 million of intersegmenteliminations and companywide expenses of ¥681 million that were not allocated to any particular reportablesegment. These companywide expenses related principally to basic research expenses that were not allocatedto 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).

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

Segment income
Gain on sales of noncurrent assets
Operating income
Financial revenue
Financial expenses
Income before income taxes

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

First Half of FYE2018(April 1, 2017 to September 30, 2017)25,75029,305

195299

25,94529,604808

754(2,220)(2,677)

24,534

27,681

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