May 11, 2016
Taiyo Nippon Sanso Corporation

Consolidated Financial Performancefor Fiscal Year Ended 2016
(Based on Japan GAAP)
1. Financial results for the FYE2016 (April 1, 2015 – March 31, 2016)(1) Operating results
Net sales(¥ million)
FYE2016
FYE2015

641,516559,373

Operating income

YoY
Change14.7
7.0(¥ million)
43,36235,297

YoY
Change22.8
12.1(Amounts less than ¥1 million are omitted)
Net income attributable
Ordinary income
to ownersof the parent
YoYYoY(¥ million)(¥ million)
ChangeChange43,16925.925,84524.5
34,282
12.2
20,7642.8

Note: Comprehensive income
FYE2016: ¥3,024 million [(94.3)% ]FYE2015: ¥52,965 million [13.9%]

FYE2016
FYE2015

Earnings pershare (Yen)
59.72
47.98

Diluted earnings
per share (Yen)
-ROE

ROA
8.2%
7.0%

5.5%
4.5%

OperatingMargin6.8%
6.3%

Reference: Equity in earnings of affiliates
FYE2016: ¥2,626 million
FYE2015: ¥2,500 million(2) Financial position
Total assets(¥ million)
783,248782,357

FYE2016 (March 31, 2016)
FYE2015 (March 31, 2015)

Note: Equity
As of March 31, 2016:
As of March 31, 2015:

Net assets(¥ million)
337,974
341,207

Equity ratio (%)
40.0
40.5

Net assets
per share (¥)
724.33733.04¥ 313,465 million¥ 317,244 million(3) Consolidated cash flows

FYE2016
FYE2015

Cash flows fromoperating activities(¥ million)
81,55558,615

Cash flows frominvesting activities(¥ million)(82,130)(30,583)

Cash flows from
Balance of cash and cash
financing activities
equivalents at term-end(¥ million)(¥ million)(1,825)49,279(33,866)
51,547

2. Dividends
Annual DividendEnd ofEnd of
End of
1st
2nd
3rdquarter quarter quarter
Yen
Yen
Yen
―
―FYE2015
6.00――
FYE2016
7.00
FYE2017 (est.)――
9.00

Termend

Total

Yen
7.00
9.00
9.00

Yen
13.00
16.00
18.00

Ratio of
Total amount Payout ratio
dividends toof dividends (consolidated)
net assets(¥ million)
5,628
6,926%

%
27.1
26.8
26.0

1.9
2.2

3. Forecasts for business operations for FYE2017 full term (April 1, 2016 – March 31, 2017)
Net salesFirst-half
Full term

Operating income

Ordinary income(%: YoY)
Net income
Basicattributable toprofit forowners of the parent
the yearper share(¥ million)

YoY
Change(¥ million)

YoYChange(¥ million)

YoYChange(¥ million)

293,000
610,000-

24,20052,000-22,60048,700-14,70030,000

YoY
Change(Yen)

-

33.97
69.32

Note: The Company will voluntarily adopt International Financial Reporting Standards (IFRS) from thefirst quarter of the fiscal year ending March 31, 2017. Accordingly, the consolidated business
forecasts have been calculated based on IFRS. As a result, the difference between these forecasts
and the actual results for the fiscal year ended March 31, 2016 based on Japanese GAAP have notbeen disclosed.
4. Business performance(1) Analysis of business results(i) Overview
In the fiscal year under review (from April 1, 2015, to March 31, 2016), in the global economy,
China's economic slowdown became more pronounced with uncertainties spreading to otherneighboring countries in Asia. Meanwhile in the United States, a rebound in the economy centeredon internal demand remains on track against the backdrop of an improving labor market, eventhough there are concerns about the impact of the dollar's appreciation and economies in other partsof the world slowing. In Japan, although capital investment by companies began to improve slightly,
there is growing uncertainty about the economy, due to the strong yen and the trend of falling shareprices, in addition to persistently sluggish growth in personal consumption.
Against this backdrop, Taiyo Nippon Sanso Group (TNSC Group) achieved the following
results for fiscal year under review. Net sales on a consolidated basis increased 14.7% year on yearto ¥641,516 million, operating income rose 22.8% to ¥43,362 million, ordinary income increased
25.9% to ¥43,169 million, and net income attributable to owners of the parent increased by 24.5%
to ¥25,845 million.
Effective from the fiscal year ended March 31, 2016, the end date of the accounting period of
certain overseas consolidated subsidiaries was changed from December 31 to March 31, to align itwith the Company's consolidated accounting period. Accordingly, the business results for thesesubsidiaries as regards the fiscal year ended March 31, 2016 reflect the results for a 15-monthconsolidated period from January 2015 to March 2016. As a result of this change in the accounting
period, net sales for the fiscal year under review increased to ¥51,374 million, operating income to¥2,976 million, and ordinary income to ¥2,522 million.
From the fiscal year under review, the Company has applied the provisions set forth in Article
39 of the Revised Accounting Standard for Consolidated Financial Statements (ASBJ Statement No.
22, September 13, 2013), changing the presentation wording from “net income” to “net income
attributable to owners of the parent.”

(ii) Breakdown of business performance by operational segment
A breakdown of business performance by reportable segment is as follows.
Starting from the fiscal year under review, the reportable segment Gas Business in Asia wasrenamed the Gas Business in Asia & Oceania, and Other Businesses was renamed the Thermos &Other Businesses. This was only a change in the reportable segment name with no impact on thesegment information.
Gas Business in Japan
In the industrial gas-related business, sales of air separation gases (oxygen, nitrogen and argon), a
core product, declined year on year, mainly reflecting a decline in demand from the key industriesof steel, electronics, and chemicals, despite strong demand from the shipbuilding and transportationequipment-related industries.
Sales of gas equipment centered on hydrogen refueling stations grew substantially. In theelectronics-related field, sales of electronic materials gases were lower year on year, tracking
falling demand from the LCD panel and semiconductor-related industries. An order received forseveral large projects drove a substantial increase in sales of equipment and installation work in theelectronics industry. In the energy-related field, sales of liquid petroleum gas (LPG) dropped
substantially year on year due to a fall in the import price.
As a result, in the Gas Business in Japan, net sales decreased 3.6% year on year to ¥332,247
million, while operating income rose 10.0% to ¥27,539 million, partly reflecting cost reductions inline with falling oil prices.
Gas Business in the United States
In the industrial gas-related business, sales of packaged gas and hard goods decreased. In theelectronics-related field, shipments and exports of electronic materials gases to major customers
within the United States were strong. In addition, as a result of foreign exchange translation gains
and the change of the business year of Matheson Tri-Gas, Inc. resulting in a 15-month consolidated
period, sales increased significantly year on year.
As a result, in the Gas Business in the United States, net sales increased 44.0% year on year to¥188,566 million, while operating income rose 17.6% to ¥6,812 million.
Gas Business in Asia & Oceania
In the industrial gas-related business, sales rose year on year in Vietnam and the Philippines. Apartfrom that, Air Products Industry Co., Ltd. in Thailand and Renegade Gas Pty Ltd in Australia wereconsolidated as subsidiaries of the Company in May and July 2015, respectively. In theelectronics-related field, sales of electronic materials gases and equipment grew substantially,
supported by continuing strong demand in Taiwan, China, and South Korea.
Moreover, Singaporean subsidiary Leeden National Oxygen Ltd. has changed its business year,resulting in a 15-month consolidated period.
As a result of the above, in the Gas Business in Asia & Oceania, net sales increased 50.3% yearon year to ¥93,174 million, and operating income rose by 80.7% to ¥4,461 million.
Thermos & Other Businesses
In the Thermos & Other Businesses, sales remained strong, particularly of new products, andincreased substantially year on year.
As a result, in Thermos & Other Businesses, net sales increased 26.5% year on year to ¥27,528
million, and operating income rose 74.3% to ¥5,993 million.
(iii) Prospects for FYE2017
In the Gas Business in Japan, with no prospects for growth in demand for gas, the Company willcontinue to make efforts to secure earnings by such measures as cost reductions, and to promotemeasures related to structural reforms, such as strengthening marketing capabilities and supplychains. In the Gas Business in the United States, the Company will take steps to restore theearnings capacity of the industrial gas business and maintain the profitability of the electronics
business, and aims to expand its on-site and other businesses. In the Gas Business in Asia &Oceania, the Company bought Renegade Gas Pty Ltd of Australia in July 2015, which willcontribute to increased earnings. In addition, in the Thermos & Other Businesses, inbound demand

is moving beyond its peak, and the Company will make efforts to secure earnings, such as
introducing new products, while building a stable supply system by launching a Philippines factoryand other measures.
Details of forecasts for the fiscal year ending March 31, 2017 are shown below. For thepurposes of these forecasts, the average exchange rate of the Japanese yen against the U.S. dollar infiscal 2017 is assumed to be ¥110/$1.
The Company will voluntarily adopt International Financial Reporting Standards (IFRS) fromthe first quarter of the fiscal year ending March 31, 2017. Accordingly, the consolidated business
forecasts for the fiscal year ending March 31, 2017 have been calculated based on IFRS.
(Billions of yen)

Net sales
FYE2017(April 1, 2016－March 31, 2017)

6,100

Operatingprofit520

Profit before
tax

Profit for theyear
attributable toowners of theparent487

300(2) Basic Company policy on profit allocation, and dividend payments for the reporting term andthe next term
The Company has adopted a policy of allocating sufficient earnings to internal reserves for theexpansion and strengthening of its corporate capabilities, and will endeavor to make shareholder
returns in line with a dividend policy linked to consolidated performance and based on sustained
payment of a stable dividend.
Based on this policy, the Company plans to pay a year-end dividend of ¥9 per share toshareholders for the fiscal year ended March 31, 2016, an increase of ¥2 over the previous fiscalyear. As a result, including the interim dividend per share of ¥7, the Company plans to pay anannual dividend per share of ¥16. For the fiscal year ending March 31, 2017, the management of
the Company plans to pay an annual dividend of ¥18 per share, similarly consisting of term-end
and interim payments of ¥9 each.
(3) Other
TNSC (Australia) Pty Ltd was established on July 16, 2015. As a result of an increase in capital on
July 31, 2015, its capital exceeded 10% of that of the Company. Accordingly, TNSC (Australia)
Pty Ltd became a specified subsidiary of the Company.
5.

Basic principles regarding adoption of financial reporting standards
TNSC Group plans to voluntarily adopt International Financial Reporting Standards (IFRS) fromthe first quarter of the fiscal year ending March 31, 2017.
The Taiyo Nippon Sanso Group has positioned the globalization of its business as a key
management strategy in the Medium-Term Business Plan, Ortus Stage 1. Against this backdrop, theGroup decided to voluntarily adopt IFRS with the goals of improving the international
comparability of its financial statements in capital markets and of unifying accounting procedures
within the Group.

6. Segment information(1) Overview of reporting segments
The Company’s reportable segments are those units of the Company for which discrete financial
information is available and for which the Board of Directors regularly conducts a review for thepurpose of making decisions about resources to be allocated to the segments and evaluate thesegments’ performance.
The Company conducts gas businesses in Japan and overseas, mainly for customers in the steel,chemical, and electronics industries, and it has built production and sales structures for its main
products in Japan, the United States, and Asia & Oceania. Therefore, the Company has establishedthe following four reportable segments: Gas Business in Japan, Gas Business in the US, Gas

Business in Asia & Oceania, and Thermos & Other Businesses.
Starting from the fiscal year under review, the reportable segment, Gas Business in Asia, wasrenamed the Gas Business in Asia & Oceania and the reportable segment, Other Businesses, wasrenamed the Thermos & Other Businesses. This was only a change in the reportable segment namewith no impact on the segment information. Moreover, to facilitate the year-on-year comparisons,the figures for the preceding fiscal year are stated under the names of the reportable segments afterthe change.
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 &OceaniaThermos & OtherBusinesses

Main products
Oxygen, nitrogen, argon, carbon dioxide, helium, hydrogen, acetylene,gas- related equipment, specialty gases (electronic materials gases, puregases, etc.), electronics-related equipment and installation, semiconductor
manufacturing equipment, cutting and welding equipment, welding
materials, plants and machinery, liquid petroleum gas (LPG) and relatedequipment, medical-use gases (oxygen, nitrous oxide, etc.), medicalequipment, stable isotopes
Housewares, real-estate rental(2) Figures of sales, earnings or losses, assets, liabilities and others by reportable segment
FYE2015 (April 1, 2014 – March 31, 2015)(¥ million)
Gas
Businessin JapanSales(1) Sales toexternalcustomers(2) Sales frominter-segment
transactions andtransfers
Total
Segment
earnings[Operatingincome]Other
depreciation

Reportable segment
Gas
Gas
Thermos &BusinessBusiness
Otherin thein Asia
Businesses
United&States
Oceania

Total

Adjustments(Note)

Amounts on
theConsolidated
Statements ofIncome559,373344,635

130,983

61,99521,758559,373-6,267

6,645

1,190

656

14,759(14,759)-350,902137,629

63,186

22,414574,132(14,759)559,373

25,045

5,795

2,468

3,437

36,747(1,449)35,297

17,451

13,405

4,112

688

35,658(89)

35,568Note:
1. The ¥1,449 million negative adjustment for segment earnings is comprised of ¥72 million ofintersegment eliminations and companywide expenses of ¥1,377 million that were not allocatedto any particular reportable segment. These companywide expenses related principally to basic
research expenses that were not allocated to a particular reportable segment.
2. The Company has not allocated assets to any business segment.

FYE2016 (April 1, 2015 – March 31, 2016)(¥ million)
Gas
Businessin JapanSales(1) Sales toexternalcustomers(2) Sales frominter-segment
transactions andtransfers
Total
Segment
earnings[Operatingincome]Other
depreciation

Reportable segment
Gas
Gas
Thermos &BusinessBusinessOther
in thein Asia
Businesses
United&States
Oceania

Total

Adjustments(Note)

Amounts on
theConsolidated
Statements ofIncome641,516

332,247

188,566

93,174

27,528641,516

-

7,792

8,185

3,615

632

20,226(20,226)-

340,039

196,751

96,78928,160661,742(20,226)

641,516

27,539

6,812

4,461

5,993

44,807(1,445)43,362

16,61921,1486,503

708

44,979(115)

44,864Note:
1. The ¥1,445 million negative adjustment for segment earnings is comprised of ¥58 million ofintersegment eliminations and companywide expenses of ¥1,503 million that were not allocatedto any particular reportable segment. These companywide expenses related principally to basic
research expenses that were not allocated to a particular reportable segment.
2. The Company has not allocated assets to any business segment.
3. The accounting period of some overseas consolidated subsidiaries was changed, and thebusiness results for these subsidiaries have been consolidated for a 15-month period.