August 4, 2015
Taiyo Nippon Sanso Corporation

Consolidated Financial Performancefor the First Quarter of Fiscal Year 2016
(Based on Japan GAAP)
1. Financial results for the first quarter (April 1, 2015 - June 30, 2015)(1) Operating results
Net salesFirst quarter ofFY2016First quarter ofFY2015

Operating income(Amounts less than ¥1 million are omitted)
Net income
Ordinary income
attributable to ownersof the parent(¥ million)

YoY
Change(¥ million)

YoY
Change(¥ million)

YoYChange(¥ million)

YoY
Change142,517

7.7%

9,893

16.6%

10,78320.6%

8,35553.7%

132,310

7.5%

8,483

15.1%

8,939

17.1%

5,436

21.0%

Note: Comprehensive income
First quarter of FY2016: ¥8,897 million [130.1% ]First quarter of FY2015: ¥3,867 million [(77.5)% ]Earnings per
share (Yen)

Diluted earnings
per share (Yen)First quarter ofFY2016First quarter ofFY2015

19.31―12.56―(2) Financial position
Total assets(¥ million)
First quarter of FY2016(June 30, 2015)
FY2015 (March 31, 2015)

Note: Equity
As of June 30, 2015:
As of March 31, 2015:

Net assets(¥ million)

Equity ratio (%)

797,091

346,81340.5

782,357

341,20740.5¥322,936 million¥317,244 million

2. Forecasts for business operations for FY2016 full term (April 1, 2015 – March 31, 2016)
Net salesFirst-half
Full term

Operating income

Ordinary income(%: YoY)
Net income
Earnings
attributable toper shareowners of the parent(¥ million)

YoY
Change(¥ million)

YoY
Change(¥ million)

YoY
Change(¥ million)

YoY
Change293,000
655,000

9.0
17.1

17,60042,5007.1
20.4

17,70041,3006.9
20.5

12,80027,00029.2
30.0(Yen)

29.58
62.39

Note: No revisions have been made to recently announced forecasts.
For revisions to the consolidated full-year forecasts, please see the press release “NoticeRegarding Revision to Consolidated Full-Year Forecasts” released today (August 4, 2015).

3. General information relating to the first quarter results
From the first quarter of the fiscal year under review, the Company has applied the provisions set forthin 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 “netincome attributable to owners of the parent” and from “minority interests” to “non-controllinginterests.”
Overall business performance (consolidated basis)
In the global economy in the first quarter of the fiscal year under review (from April 1, 2015, to June 30,2015), Europe was beset with uncertainty over the Greek crisis, while in China and other countries inAsia growth was seen to slow. Meanwhile the United States returned to a recovery trend after atemporary slowdown due to the appreciation of the U.S. dollar, among other factors. The Japanese
economy continues to recover gradually, reflecting factors such as an improved export environment,supported by the yen’s depreciation, and increased capital expenditure.
Against this backdrop, Taiyo Nippon Sanso Group (TNSC Group) achieved the following results forthe first quarter of the fiscal year under review. Net sales on a consolidated basis increased 7.7% year onyear to ¥142,517 million, operating income rose 16.6% to ¥9,893 million, ordinary income increased
20.6% to ¥10,783 million, and net income attributable to owners of the parent increased by 53.7% to¥8,355 million.
A breakdown of business performance by reportable segment is as follows.
To reflect more properly the Company's operating results by reportable segment, from the fourth
quarter of the consolidated fiscal year ended March 31, 2015, the Company has changed the method of
allocating certain expenses to a method based on a rational standard appropriate for the actual situation
after a reorganization of each segment. Segment results for the first quarter of the fiscal year ended
March 31, 2015 have been prepared by the method of calculating profit or loss after the reorganization.
(1) Gas Business in Japan
Sales of air separation gases (oxygen, nitrogen and argon), a core product, declined year on year, mainlyreflecting a decline in demand for the key industries of steel, chemical, and electronics, despite strong
demand in the shipbuilding and transportation equipment-related industries. In addition, sales of plants
and welding and cutting equipment grew significantly due to an increase in capital investment demand.
Sales of electronic materials gases were lower year on year, tracking falling demand in the LCD
panel and semiconductor-related industries.
In the medical field, sales climbed steadily year on year, mainly for medical equipment for home use
and hospital equipment.
Sales of liquid petroleum gas (LPG) dropped significantly year on year due to a drop in the importprice.
As a result, in the Gas Business in Japan, net sales decreased 3.2% year on year to ¥77,833 million
and operating income rose 2.7% to ¥5,605 million.
(2) Gas Business in the United States
Due to an economic recovery and an increase in the yen translation amount of sales due to foreigntranslation effects, sales increased significantly year on year.
As a result, in the Gas Business in the United States, net sales increased 25.7% to ¥39,563 million,
while operating income rose 57.0% to ¥2,153 million, partly due to the effect of cost reductions due tothe decline in the price of oil.
(3) Gas Business in Asia
In industrial gas-related sales, the Company recorded brisk sales of nitrogen, mainly to Vietnam and thePhilippines. In the electronics-related field, sales of electronic materials gases and equipment grew,
supported by continuing strong demand in Taiwan, China, and South Korea.
As a result of the above, in the Gas Business in Asia, net sales increased 20.9% to ¥17,627 million,and operating income rose by 32.4% to ¥965 million.
(4) Other Businesses
In the Thermos Business, sales remained strong, particularly of new products, and increased

substantially year on year.
As a result, in Other Businesses, net sales increased 28.8% year on year to ¥7,491 million, andoperating income climbed by 22.8% to ¥1,570 million.
4. Segment information(1) Figures of sales, earnings or losses, by reportable segment
First Quarter, FY2015 (April 1, 2014 – June 30, 2014)(¥ million)
Gas
Businessin JapanSales(1) Sales toexternalcustomers(2) Sales frominter-segment
transactions andtransfers
TotalSegment
earnings[Operatingincome]

Reportable segment
Gas
Gas
Other
Business
Business Businesses
in thein Asia
UnitedStates

Total

Adjustments(Note)

Amounts on
theConsolidated
Statements ofIncome80,43031,48014,584

5,815

132,310－132,310

865

1,293

248

173

2,580

(2,580)－81,29532,774

14,833

5,988

134,891(2,580)132,310

5,459

1,371

729

1,278

8,838

(354)

8,483

Note: The ¥354 million negative adjustment for segment earnings is comprised of ¥19 million ofintersegment eliminations and companywide expenses of ¥374 million that were notallocated to any particular reportable segment. These companywide expenses related
principally to basic research expenses that were not allocated to a particular reportablesegment.
First Quarter, FY2016 (April 1, 2015 – June 30, 2015)(¥ million)
Gas
Businessin JapanSales(1) Sales toexternalcustomers(2) Sales frominter-segment
transactions andtransfers
TotalSegment
earnings[Operatingincome]

Reportable segment
Gas
Gas
OtherBusinessBusiness Businesses
in thein Asia
UnitedStatesTotalAdjustments(Note)

Amounts ontheConsolidated
Statements ofIncome77,83339,563

17,627

7,491

142,517－

142,517

1,980

1,526

728

152

4,387

(4,387)－

79,81341,09018,356

7,644

146,904

142,517

5,605

2,153

965

1,570

10,294(4,387)
(401)

9,893

Note: The ¥401 million negative adjustment for segment earnings is comprised of ¥41 million ofintersegment eliminations and companywide expenses of ¥360 million that were notallocated to any particular reportable segment. These companywide expenses related
principally to basic research expenses that were not allocated to a particular reportablesegment.

(2) Changes to reportable segments
Change in method of calculating earnings and losses in reportable segments
To reflect more properly the Company's operating results by reportable segment, from the fourth
quarter of the consolidated fiscal year ended March 31, 2015 the Company has changed the methodof allocating certain expenses to a method based on a rational standard appropriate for the actual
situation after a reorganization of each segment.
The "Figures of sales, earnings or losses, by reportable segment" for the first quarter of the fiscal
year ended March 31, 2015 have been prepared by the method of calculating profit or loss after thereorganization.
As a result, segment income (operating income) for the first period of the previous fiscal year
increased by ¥56 million for the Gas Business in Japan, decreased by ¥16 million for the Gas
Business in the United States, and decreased by ¥40 million for the Gas Business in Asia.
5. Important subsequent events
Establishment of an important subsidiary or acquisition of a company, etc. through acquisition of shares
At a Board of Directors’ meeting on July 21, 2015, it was resolved to establish a subsidiary in Australia
as follows, and through it to acquire 100% of the outstanding shares of Renegade Gas Pty Ltd(hereinafter “RGP”), which conducts sales of LPG and industrial gas, and so forth in Australia. RGP
became a subsidiary of the Company on July 31, 2015.
1. Establishment of TNSC (Australia) Pty Ltd(1) Establishment of an important subsidiary and its purpose
The Company established TNSC (Australia) Pty Ltd with the purpose of acquiring and holding theshares of Renegade Gas Pty Ltd.
(2) Name, location, and business activities of the established company
1) Name of established company
TNSC (Australia) Pty Ltd
2) Location
New South Wales, Australia3) Business activities
Control and management of business activities throughholding the shares of Renegade Gas Pty Ltd(3) Investment amount and investment ratio1) Stated capital2) Investment ratio

A$106 million
The Company 85%
Mr. Mark Michalowsky 13.5%
Mr. Paul Berman 1.5%

2. Regarding the acquisition of Renegade Gas Pty Ltd’s shares(1) Purpose of the acquisition
The Company continues to examine options for overseas business expansion into new countries toexpand its business area. This expansion is intended to achieve the goal of globalization, which isone of the strategies of the medium-term management plan “Ortus Stage 1.” Australia has the 12thlargest GDP in the world, and is expected to achieve solid economic growth of around 3% per year
driven by growth in housing investment and personal consumption, supported by one of the higher
population growth rates among advanced nations at 1-2% per year. The industrial gas market isexpected to benefit from firm growth in demand related to housing construction and infrastructure, as
well as new demand related to resources and energy.
The Company will use RGP as a bridgehead to develop the industrial gas market in Australia andOceania, utilizing RGP’s existing networks and expanding the range of products it handles as well as
its geographical operating area.

By leveraging synergies between RGP and other Group companies, the Company will begin
taking steps to establish a firm foundation for its industrial gas business in Australia.
(2) Names of counterparties in the share acquisitionAll shareholders of Renegade Gas Pty Ltd(3) Name, business activities, and scale of the acquired company
NameRenegade Gas Pty LtdBusiness activities
Refilling and sale of LPG and other industrial gases,
sale and rental of related equipment
Scale(Year ended June, 2014)
Stated capital
A$3 million
Net assets
A$26 million
Total assets
A$69 million
Net sales
A$64 million(4) Date of share acquisition
July 31, 2015(5) Number of shares acquired, acquisition prices, and ownership ratio after acquisition
Number of shares acquired
1,666,666 sharesAcquisition price
To be determined
Ownership ratio after acquisition
100%(6) Method of procurement of funds for payment
Loan from financial institution