May 9, 2013
Taiyo Nippon Sanso Corporation

Consolidated Business Performancefor Fiscal Year 2013
(Based on Japan GAAP)

1. Financial results for the FY2013 full term (April 1, 2012 – March 31, 2013)(1) Operating Results(Amounts less than ¥1 million are omitted)
Net sales(¥ million)

YoY
ChangeFY2013
468,387(1.9)%FY2012477,451(1.3)%
Note: Comprehensive income
FY2013: ¥13,234 million [(18.4)%]
FY2012: ¥16,222 million [―%]

Operating income

Ordinary income(¥ million)

YoYChange(¥ million)

YoYChange(¥ million)

YoY
Change24,884
31,067(19.9)%(12.4)%

23,06029,730(22.4)%(13.0)%(2,071)
21,200―%66.5%

Dilutedearnings
per share (Yen)FY2013(5.25)―FY2012
53.33―
Reference: Equity in earnings of affiliates
FY2013: ¥1,284 million
FY2012: ¥1,158 million
Earnings pershare (Yen)ROE(1.0)%
10.8%

Net income

OperatingMargin

ROA
3.8%
4.9%

5.3%
6.5%

(2) Financial Position
FY2013 (March 31, 2013)
FY2012 (March 31, 2012)
Reference: Equity
FY2013: ¥203,771 million
FY2012: ¥200,835 million

Total assets(¥ million)
615,820
607,024

Net assets(¥ million)
224,253
219,611Equity ratio (%)
33.1
33.1

Net assets
per share (¥)
525.38506.02(3) Consolidated Cash FlowsFY2013
FY2012

Cash flows from
Cash flows fromoperating activities investing activities(¥ million)(¥ million)
33,964(37,225)
45,986(32,748)

1

Cash flows from
Balance of cash and cash
financing activities
equivalents at term-end(¥ million)(¥ million)(8,181)
22,721(23,536)
33,275

2. Dividends
Annual Dividend
End ofEnd ofEnd of
1st
2nd
3rd
quarter quarter quarter
Yen
Yen
Yen
6.00
－－6.00－－6.00－－

FY2012FY2013
FY2014 (est.)

Totalamount ofdividends

Termend

Total

Yen
6.00
6.00
6.00

Yen (¥ million)
12.00
4,764
12.00
4,710
12.00

Payout ratio(consolidated)

Ratio ofdividends tonet assets

%%
22.5－
27.2

2.4
2.3

3. Forecasts for business operations for FY2014 full term (April 1, 2013 – March 31,2014)(%: YoY)
Net sales(¥ million)

YoY

Operating income

Ordinary income(¥ million)(¥ million)

ChangeFirst-half
Full term

252,000514,000

10.4%
9.7%

YoY
Change14,60031,500

16.2%
26.6%

YoYNet income(¥ million)

Change13,80029,300

14.6%
27.1%

Earnings
per share

YoY(Yen)Change7,900
17,100－%
－%

20.37
44.09

4. Business performance(1) Analysis of business results① Overview
During the reporting period, the global economy remained weak overall in spite of signs of a
gradual recovery primarily in consumer spending by the US economy. This weakness was
attributable to such factors as the recession in Europe, accompanying a lack of improvement in
the region’s ongoing financial crisis; and indications of difficulties among emerging
economies, particularly China and India, in maintaining the high level of economic growthexperienced to date. Despite continual stagnation caused by the persistently strong yen anddeflation throughout the fiscal year under review, indications of a gradual upswing in theJapanese economy were seen owing to aggressive economic policies implemented by the new
government, which was elected at the end of 2012, and the Bank of Japan.
Turning to the operating environment of the Taiyo Nippon Sanso Group (TNSC Group), theoverseas Group experienced a gradual recovery in demand for industrial gases in the NorthAmerican market. Although Asia was impacted by a slowdown of electronics production in
Taiwan, other regions remained firm amid business expansion on the back of M&A undertaken
in Singapore.
In domestic operations, however, conditions remained weak overall due to a decline indemand from key customers, beginning with electronics industry.
Against this backdrop, net sales on a consolidated basis declined 1.9% year on year to¥468,387 million, while operating income fell 19.9% to ¥24,884 million, and ordinary income
decreased 22.4% at ¥23,060 million. In addition, net loss totaled ¥2,071 million (compared2

with a net income of ¥21,200 million for the previous fiscal year) due to the posting of an
extraordinary loss of ¥23,300 million accompanying the Company’s withdrawal from its joint
monosilane gas production business.
② Breakdown of business performance by operational segment
Industrial Gases BusinessIn domestic operations, net sales of oxygen increased year on year due to firm demand in thesteel industry, a key user of these gasses. However, sales of nitrogen dipped slightly, mainlyreflecting lower operating rates in the chemical industry. Sales of air separation plants alongwith cutting and welding equipment and materials fell year on year mainly because of thestrong yen. In overseas markets, sales in North America grew year on year amid a gradual
recovery in the economy. Sales in Asia increased substantially year on year largely thanks to
new consolidation effects.
As a result, net sales of Industrial Gases Business increased 2.4% year on year to ¥298,073
million. However, operating income decreased 1.8% to ¥21,322 million due to higher costs inline with an increase in electricity and other charges.
Electronics Business
Sales to the electronics industry were weak throughout the fiscal year under review amidsluggish demand for semiconductors, liquid crystal panels, solar cells and other products. Salesof electronic materials gases and electronics-related equipment and installations dropped
sharply year on year. Sales of semiconductor manufacturing equipment(MOCVD) decreased
compared with the previous fiscal year due to stagnant capital investment among key domesticusers.
As a result, net sales for the Electronics Business fell 16.3% year on year to ¥96,546 million,
while and operating loss totaled ¥536 million (compared with operating income of ¥5,914
million for the previous fiscal year).
Energy BusinessAlthough the sales volume of LP gas decreased year on year, the Company continued to focus
on such measures as revising sales prices in line with higher import prices and reducing costs.
As a result, net sales in the Energy Business rose 3.0% year on year to ¥40,031 million, while
operating income climbed 8.4% to ¥1,808 million.
Other Businesses
In the Medical Business, sales of medical devices and equipment were brisk. In the Thermos
Business, sales improved year on year thanks to sales of ultra-light and compact portable mugs
and food containers.
As a result, net sales in Other Businesses increased 4.7% year on year to ¥33,736 million,
while operating income grew 20.9% to ¥3,291 million.
3③ Prospects for FY2014
Despite signs of a gradual recovery, the outlook for the global economy remains uncertain
primarily because of concerns over the impact of the Europe’s financial problems. Regarding
the outlook for the Japanese economy, expectations of a rebound are increasing amid financial
easing and other government measures. Nevertheless, the operating environment of theCompany and the TNSC Group is expected to remain severe due to worries mainly over theimpact of increases in electricity charges in Japan.
Amid these circumstances, the Company and the TNSC Group will work to secure adequate
earnings by focusing management resources on growing markets and regions, and byimplementing cost-cutting measures.

FY2014FY2013
YoY change (%)

Net sales514.0
468.3
9.7

Operating income
31.5
24.8
26.6

(Billions of yen)
Ordinary income
Net income
29.3
17.1
23.0
(2.0)
27.1
―Note: For the purposes of these forecasts, the average exchange rate of the Japanese yen against the U.S.
dollar in FY2014 is assumed to be ¥90/$1(2) Basic Company policy on profit allocation, and dividend payments for the reporting
term and the next term
The Company has adopted a policy of allocating sufficient earnings to internal reserves forthe expansion and strengthening of its corporate capabilities, as well as to allow investment invigorous business development and thereby improve business performance so as to meetshareholder expectations.
With regard to the allocation of profits, the Company’s basic policy is to pay a dividend fromretained earnings twice a year, in the form of a semiannual interim dividend and a year-enddividend. This distribution of retained earnings is determined by the annual general meeting of
the Company’s shareholders in the case of the year-end dividend, and by the Company’s Boardof Directors for the interim dividend.
In accordance with the above-stated policy, an annual dividend of ¥12 per share shall be paid
for the reporting term, consisting of a year-end dividend of ¥6 and an interim dividend also of¥6.
For the next business term (ending March 31, 2014), the management of the Company plansto pay an annual dividend of ¥12 per share, similarly consisting of term-end and interim
payments of ¥6 each.

45. Matters relating to the business terms, etc. of consolidated subsidiaries
Account closing dates of the Company’s consolidated subsidiaries are as follows:
December 31: 54 overseas consolidated subsidiariesMarch 31: 56 consolidated subsidiaries excluding those noted above
The difference between the closing date for the Company’s consolidated accounts and theclosing dates for its subsidiaries is less than three months. However, for significant transactions
that have occurred during the period from January 1, 2013 and the consolidated account closing
date of March 31, 2013, the accounts are adjusted where necessary.
The account closing dates of National Oxygen Private Limited, Nippon Oxygen Sdn. Bhd.,
Nippon Carbon Dioxide (Malaysia) Sdn. Bhd., PT Natgas, Ingasco, Incorporated, Taiyo Nippon
Sanso Philippines, Inc., Taiyo Nippon Sanso Taiwan, Inc., Taiyo Nippon Sanso Engineering
Taiwan, Inc. and Fu Yang Gas Co., Ltd. have been changed to March 31.
6. Segment Information(1) Overview of reporting segments
The Company regularly reviews segment performance to enable the Board of Directors tomake decisions on resource allocation and evaluate results of each segment, based on financial
data that can be extracted on an individual segment basis.
The Company recognizes four segments for reporting purposes, the Industrial Gases
Business, Electronics Business, Energy Business, and Other Businesses, reflecting a basic
breakdown of our businesses by product and service category, and end-user market, eachcategory being a business division.
The Industrial Gases Business engages in the manufacture and marketing of gases and related
equipment to steelmakers, chemical companies and other general industries in Japan andoverseas. Please note that the Plants & Engineering business has been folded into the Industrial
Gases Business as their core customers are similar in nature.
Electronics Business engages in the manufacture and marketing of gases and related
equipment for electronics companies in Japan and overseas.
The Energy Business segment markets LP gas within Japan. The Other Businesses segment
includes the Medical Business (marketing of medical-use gas), Thermos Business (manufactureand marketing of housewares) and others.
The principal products and services included in the four segments are shown in the tablebelow.

5Business segment
Industrial Gases
BusinessElectronics
Business
Energy BusinessOthers

Main products
Oxygen, nitrogen, argon, carbon dioxide, helium, hydrogen, acetylene,gas- related equipment, cutting and welding equipment, welding
materials, plants and machineryNitrogen, argon, specialty gases (electronic materials gases, pure gases,etc), electronics-related equipment and installation, semiconductor
manufacturing equipment
Liquid petroleum gas (LPG) and related businesses in Japan
Medical-use gases (oxygen, nitrous oxide, etc), medical equipment,
stable isotopes, housewares, real-estate rental(2) Method of calculating figures of sales, earnings or losses, assets, liabilities and others of theCompany’s reporting segments
The accounting procedures for the reporting business segments are listed using figures basedon accounting standards used to prepare consolidated financial statements.
Segment income figures are for operating income.
Intersegment transactions and transfers are based on the current market price.
(3) Figures of sales, earnings or losses, assets, liabilities and others by reporting segment
FY2012 (April 1, 2011 – March 31, 2012)(Millions of yen)

Reporting Segments

Adjustment(Notes) 1

Total(consolidated)

477,451―

477,451

2,696

7,379

(7,379)―41,312
1,667

34,914
2,723

484,830
32,018(7,379)(950)

477,451
31,067534

1,511

30,907(435)30,471

Industrial
Gases

Electronics

EnergyOthersTotal

291,057

115,294

38,881

32,218

2,143

107

2,431

293,201
21,712

115,402
5,914

18,501

10,360Sales(1) Sales toexternalcustomers(2) Sales frominter-segment
transactions andtransfers
Total
OperatingincomeOther
depreciation
Notes

1. The ¥950 million negative adjustment for segment earnings comprises ¥85 million of inter-segment
eliminations and companywide expenses of ¥1,035 million that were not allocated to any particular
reporting segment. These companywide expenses relate principally to basic researches that were notparticularly allocated to reporting segments.
2. The Company has not allocated assets to any business segment.

6FY2013 (April 1, 2012 – March 31, 2013)(Millions of yen)

Reporting Segments

Adjustment(Notes) 1

Total(consolidated)

468,387―

468,387

2,552

6,437

(6,437)―42,016
1,808

36,2893,291

474,825
25,885(6,437)(1,000)468,387
24,884446

1,493

29,724(323)

29,400Industrial
Gases

Electronics

EnergyOthersTotal

298,073

96,54640,03133,736

1,742

157

1,985

299,816
21,322

96,703(536)17,977

9,806

Sales
(1) Sales toexternalcustomers(2) Sales frominter-segment
transactions andtransfers
Total
OperatingincomeOther
depreciation
Notes

1. The ¥1,000 million negative adjustment for segment earnings comprises ¥383 million of inter-segment
eliminations and companywide expenses of ¥1,384 million that were not allocated to any particular
reporting segment. These companywide expenses relate principally to basic researches that were notparticularly allocated to reporting segments.
2. The Company has not allocated assets to any business segment.

(4) Reporting by Geographical Segment①FY2012 (April 1, 2011 – March 31, 2012)
Sales(Millions of yen)Japan
United States
Other
Total
352,727
81,68443,039477,451
Note: Sales are classified according to the countries or regions of location of customers.

Property, Plant and Equipment
Japan160,907

United States
69,122

Other(Millions of yen)Total
25,469255,499②FY2013 (April 1, 2012 – March 31, 2013)
Sales(Millions of yen)Japan
United States
Other
Total
329,771
81,02457,592
468,387
Note: Sales are classified according to the countries or regions of location of customers.

Property, Plant and Equipment
Japan
159,074

7

United States
82,994(Millions of yen)
Other
Total
30,073272,142