July 29, 2019
Taiyo Nippon Sanso Corporation

Consolidated Financial Performancefor the First Quarter of Fiscal Year Ending March 31, 2020
(Based on IFRS)(Amounts less than ¥1 million are omitted)

1. Financial results for the first quarter of FYE2020 (April 1, 2019 – June 30, 2019)(1) Operating results(Percentages indicate year-on-year change)

Core operating
incomeRevenue(¥ million)

Operatingincome

Net income

Net income
attributable toowners of theparent

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

First quarterof210,329
FYE2020

32.6

21,722

55.9

21,08942.7

12,765

25.6

12,221

26.2(6,737)―First quarterof158,662
FYE2019

5.2

13,934(0.7)

14,778

3.1

10,159

28.6

9,684

27.2

16,89093.6(Reference) Income before income taxes
First quarter of FYE2020: ¥18,264 million [28.4% ]First quarter of FYE2019: ¥14,223 million [4.4% ]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 quarter ofFYE2020
First quarter ofFYE2019

Diluted net income
per share (yen)

28.24

―

22.38

―(2) Financial position
Total assets(¥ million)

Total equity(¥ million)

Equity attributableto owners of theparent (¥ million)

Equity attributableto owners of theparent ratio (%)

First quarter of FYE2020(June 30, 2019)

1,774,359

428,311398,31322.4

FYE2019 (March 31, 2019)

1,771,015

435,854406,602

23.0

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2.

Dividends
Annual Dividend
End of 1quarterstYen

FYE2019
FYE2020
FYE2020 (est.)―ndEnd of 2quarterEnd of 3rdquarter

Termend

Total

Yen

Yen

Yen

Yen

12.00

―

13.00

25.00

13.00

―

13.00

26.00

―

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

Forecasts for business operations for FYE2020 full term (April 1, 2019 – March 31, 2020)(Percentages indicate year-on-year change)

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

Operating income(¥ million)%

First-half
435,000
32.0
46,00063.4
46,00058.8
Full term
890,000
20.2
95,00044.3
102,000
52.6
Note: No revisions have been made to recently announced forecasts.
(Reference) Income before income taxes
First half of FYE2020: ¥39,000 million [44.1%]
FYE2020 full term: ¥86,500 million [39.3%]

Net income(¥ million)%

26,70059,50042.6
36.1

Net income
attributable toowners of the parent(¥ million)

25,50057,000

Basicearnings
per share%

(Yen)

44.2
38.0

58.92
131.71

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. For details on the assumptions of the forecasts and related
matters, please see page 3, “6. Explanation concerning predictive information such as forecasts for businessoperations.”

5.

General information relating to the first quarter results
The business environment surrounding the Taiyo Nippon Sanso Group (TNSC Group) in the first quarter of thefiscal year under review (from April 1, 2019 to June 30, 2019) saw slightly soft production activities in key
industries in Japan, while production activities in manufacturing industries in the U.S. and Europe were solid, andshipments of air separation gases (oxygen, nitrogen, and argon) were generally firm. In the electronics-related field,
deliveries of electronic materials gases in Japan were mostly on par with the previous fiscal year.
Against this backdrop, the TNSC Group achieved the following results for the first quarter of the fiscal year
under review. Revenue on a consolidated basis increased 32.6% year on year to ¥210,329 million, core operating
income rose 55.9% to ¥21,722 million, operating income increased 42.7% to ¥21,089 million, and net income
attributable to owners of the parent rose 26.2% to ¥12,221 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.
Gas Business in Japan
In the industrial gas-related business, revenue from air separation gases, a core product, decreased year on year for
use primarily in the key industries of steel and transportation equipment. In the medical-related business, there wasa contribution to earnings from the medical equipment sales company, IMI Co., Ltd., acquired in October 2018.
In the electronics-related field, revenue from electronic materials gases were mostly on par with the previous fiscalyear.
As a result, in the Gas Business in Japan, revenue increased 1.4% year on year to ¥83,818 million, whilesegment income decreased 7.6% to ¥5,669 million.

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Gas Business in the United States
In the industrial gas-related business, revenue increased primarily from bulk gas and hard goods following a steady
performance in the manufacturing sector. In the on-site business, the start of operation of new projects for achemicals manufacturer and other customers contributed to revenue. In addition, revenue rose partly due to acontribution from the HyCO business*1, which was acquired in February 2019. In the electronics-related field,
revenue from equipment and installation decreased substantially.
As a result, in the Gas Business in the United States, revenue increased 11.6% year on year to ¥49,697 million,and segment income rose 69.7% to ¥5,292 million.
Gas Business in Europe
Revenue from the European business amounted to ¥44,064 million and segment income from this business was¥6,926 million. The European business acquired from Praxair, Inc. of the United States in December 2018 has
been disclosed in this segment since the first three quarters of the previous fiscal year.
Gas Business in Asia & Oceania
In the industrial-gas related business, revenue rose only slightly in Southeast Asia despite solid sales centered onbulk gas. In Australia, sales of LPG were brisk. In the electronics-related business, revenue increased due to alarge increase in revenue from equipment and installation. However, shipments of electronic materials gases in
Taiwan declined year on year.
As a result of the above, in the Gas Business in Asia & Oceania, revenue increased 4.1% year on year to¥26,159 million, while segment income decreased 21.5% to ¥2,602 million.
Thermos BusinessIn the Thermos Business, revenue was up year on year, mainly due to solid sales of vacuum insulated portablemugs in Japan.
As a result, in the Thermos Business, revenue increased 4.1% year on year to ¥6,589 million and segment
income rose 12.6% to ¥1,923 million.
6.

Explanation concerning predictive information such as forecasts for business operations
The Company has not revised its forecasts for business operations announced on May 13, 2019.

7.

Notes to the condensed consolidated financial statements(Note regarding going concern assumption)
Not applicable.
(Change in accounting policy)
The main accounting standards and interpretations applied by the TNSC Group from the first quarter of the fiscal
year under review are as follows:Standards and interpretations

Outline of new standards or revisions

IFRS 16IFRS 16 sets forth revisions to accounting procedures and disclosure methods
for the treatment of leases. Under a single lessee accounting model and for allleases with a term of more than 12 months undertaken as lessee, IFRS 16
primarily requires lessees, in principle, to reflect in the financial statements
their assets representing their right to use leased assets and liabilities
representing their obligations to make lease payments.

LeasesAs a result of the application of IFRS 16, the carrying amount of the TNSC Group’s lease-related assets increasedby ¥34.1 billion and lease liabilities simultaneously increased by ¥34.6 billion on the day starting the applicationof IFRS 16.
Upon applying IFRS 16, the TNSC Group has adopted the method where the cumulative effect of applying thisstandard is recognized at the date of initial application, which is allowed as a transitional measure. There was nocumulative effect at the date of initial application of this standard.

1HyCO stands for hydrogen (H2) and carbon monoxide (CO), which are separated from natural and other gases through a technology called Steam

Methane Reforming (SMR). The HyCO business provides large-scale supply of H2 and CO to oil refining and petrochemical industries through apipeline.

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8.

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 United States,Europe, and Asia & Oceania. In addition, the TNSC Group conducts the manufacture and sales business ofhousewares such as stainless steel vacuum bottles. Therefore, the Company has established the following fivereportable segments: Gas Business in Japan, Gas Business in the United States, Gas Business in Europe, Gas
Business in Asia & Oceania, and Thermos Business.
The principal products and services included in the five segments are shown in the table below.
Business segment
Gas Business in Japan
Gas Business in theUnited States
Gas Business in Europe
Gas Business in Asia &Oceania

Main products and services
Oxygen, nitrogen, argon, carbon dioxide, helium, hydrogen, acetylene, gas- relatedequipment, specialty gases (electronic materials gases, pure gases, etc.), electronicsrelated equipment and installation, semiconductor manufacturing equipment, cutting
and welding equipment, welding materials, plants and machinery, liquid petroleumgas (LPG) and related equipment, medical-use gases (oxygen, nitrous oxide, etc.),
medical equipment, stable isotopes

Thermos BusinessHousewares

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
First Quarter, FYE2019 (April 1, 2018 – June 30, 2018)(¥ million)
Business segment
Gas
Businessin Japan

Gas Business
Gas
Gas Businessin the United Business in in Asia &States
EuropeOceania

Thermos
Business

Total

Amounts on theAdjustments Consolidated(Note 1)
Statements ofIncome

Revenue
82,69744,512―25,121

6,332

158,662―

158,662(2) Revenue frominter-segment
transactions andtransfers

1,758

3,024―

901

55,691―

Total(5,691)

84,45547,536―

26,023

6,338

164,354(5,691)

158,662

Segment income(Note 2)

6,137

3,118

―

3,317

1,708

14,282(347)

13,934(1) Revenue toexternal customers

Notes:
1. The ¥347 million negative adjustment for segment income is comprised of intersegment eliminations of ¥27
million and companywide expenses of ¥374 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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First Quarter, FYE2020 (April 1, 2019 – June 30, 2019)(¥ million)
Business segment
Gas
Gas Business
Gas Business
Gas BusinessBusiness in the Unitedin Asia &in Europe
in JapanStates
Oceania

Thermos
Business

Total

Adjustments(Note 1)

Amounts on theConsolidated
Statements ofIncome

Revenue(1) Revenue toexternal customers(2) Revenue frominter-segment
transactions andtransfers
TotalSegment income(Note 2)

83,81849,69744,064

26,1596,589

210,329－

210,329

2,775

4,338－

612

4

7,730

(7,730)－86,59354,03544,064

26,772

6,593

218,059(7,730)210,329

5,669

5,292

6,926

2,602

1,923

22,414(692)

21,722

Notes:
1. The ¥692 million negative adjustment for segment income is comprised of ¥229 million of intersegment
eliminations and companywide expenses of ¥462 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).
(2) Reconciliation of segment income with income before income taxes(¥ million)
First quarter of FYE2019(April 1, 2018 to June 30, 2018)
Segment income

13,934First quarter of FYE2020(April 1, 2019 to June 30, 201９)
21,722Gain on sales of noncurrent assets

947

160

Impairment loss－(315)

Other(104)(478)

Operating income

14,77821,089Financial revenue

747789Financial expenses(1,301)(3,615)

Income before income taxes

14,223

18,264

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