February 8, 2012
Taiyo Nippon Sanso Corporation

Consolidated Financial Performancefor the First Three Quarters of Fiscal Year 2012
(Based on Japan GAAP)

1. Financial results for the first three quarters (April 1, 2011 – December 31, 2011)(1) Operating results
Net sales(¥ million)

YoY
Change(Amounts less than ¥1 million are omitted)
Operating income
Ordinary income(¥ million)

Net income

YoYChange(¥ million)

YoYChange(¥ million)

YoY
ChangeFirst three348,464(1.9)%
22,637(14.9)%
quarters ofFY2012First three355,238
14.0%
26,59534.0%
quarters ofFY2011
Note: Comprehensive income
First three quarters of FY2012: ¥7,548 million (up 48.1%)
First three quarters of FY2011: ¥5,097 million (-%)

22,292(14.8)%

16,91012.0%

26,151

35.0%

15,096

39.6%

First three quarters of FY2012

Earnings pershare (Yen)
42.51

Diluted earnings
per share (Yen)-First three quarters of FY2011

37.76

-

Total assets(¥ million)
583,502

Net assets(¥ million)
207,466

Equity ratio (%)

207,41631.2(2) Financial position
First three quarters ofFY2012 (September 30, 2012)
FY2011 (March 31, 2011)
617,676
Reference: Equity
First three quarters of FY2012: ¥192,559 million
FY2011 full term: ¥192,571 million

133.0

2. Forecasts for business operations for FY2012 (full term; April 1, 2011 –March 31, 2012)
Net sales(¥ million)

YoY

Operating income

Ordinary income(¥ million)(¥ million)

ChangeYoY
ChangeYoY

Net income(¥ million)

Chang

YoY

Earnings
per share(Yen)

Changee

FY2012(full term)

476,000(1.6)%

30,000(15.4)%

29,000(15.1)%

19,500

53.1%

49.13

Note: Revisions to recently announced forecasts: Yes
3. General information relating to the first three quarter results
Overall business performance (consolidated basis)
In the first three quarters of the fiscal year under review (April 1 to December 31,2011), the global economy remained shrouded in a cloud of uncertainty. Despite signsof a recovery in U.S. economic conditions, this uncertainty was mainly attributable todeepening financial instability in Europe and a slowdown in the rates of economic
growth in China and emerging markets. On the domestic front, the Japanese economy
stalled. Amid ongoing efforts to promote a recovery and the reconstruction ofdamaged areas following the Great East Japan Earthquake, immediate prospects forthe domestic economy were impacted by a slump in export activity as a result of suchfactors as the unprecedented appreciation in the value of the yen and the floods inThailand, issues with respect to the supply of electric power due to the suspension ofoperations at nuclear power plants and the continuous shift abroad by Japanesemanufacturing companies.
Against this backdrop, consolidated net sales for the first three quarters of thefiscal year under review fell 1.9% compared with the corresponding period of theprevious year to ¥348,464 million. From a profit perspective, operating income
declined 14.9% year on year to ¥22,637 million while ordinary income contracted
14.8% to ¥22,292 million. Net income, on the other hand, climbed 12.0% comparedwith the corresponding period of the previous fiscal year to ¥16,910 million reflecting
the gain on transfer of the SDS and VAC businesses in the U.S.
A breakdown of business performance by operational segment is as follows.
(1) Industrial Gases Business
Demand in key customer industries such as steelmaking and chemicals is gradually
recovering after a sharp drop at the beginning of the period due to the earthquake
disaster. However, sales of mainstay products including oxygen, nitrogen and argon
were all slightly down year on year, due to the decline in export activity resulting
from the sharp and rapid appreciation in the value of the yen. In the machinery and2

equipment business, sales of cutting and welding equipment increased year on year
mainly in Japan. On the other hand, sales of such products as air separation plantsdeclined substantially year on year owing largely to the slump in large-scale capital
investment demand. In overseas markets, sales rose on a year-on-year basis due partly
to strong business activities following mergers completed in North America in theprevious fiscal period.
As a result of the foregoing, sales of Industrial Gases Business increased
0.4% year on year to ¥215,633 million, while operating income decreased 4.7% to¥16,811 million.
(2) Electronics BusinessConditions in the electronics industry were impacted by such factors as theearthquake disaster, the dramatic surge in the value of the yen and the floods inThailand. As a result, demand for electronic material gases from major domestic
manufacturers of semiconductors, LCD panels and related products stalled. Whiledemand remained firm in Korea, Taiwan and China, sales of electronic material gases
declined year on year due to weak shipments in Japan. In similar fashion, sales ofelectronics-related equipment and installation fell steeply year on year due to reduced
capital investment demand. Despite a steady pickup in orders from Korea andTaiwan, sales of semiconductor manufacturing equipment also took a hit as majorusers in Japan postponed their capital expenditure plans.
As a result of the above, sales in Electronics Business fell 10.4% year onyear to ¥82,362 million, while operating income fell 41.1% to ¥4,029 million.
(3) Energy BusinessAlthough shipments of LP gas were down year on year in volume terms, sales rosedue to persistently high import prices.
As a result, sales in Energy Businesses increased 4.8% year on year to¥26,971 million, while operating income jumped 29.5% to ¥898 million.
(4) Other Businesses
In the Medical Business, sales of medical equipment devices were up year on year on
the back of buoyant demand mainly in the home healthcare market. In the Thermos
Business, sales were down year on year.
As a result of the foregoing, sales in Other Businesses increased 3.2% year
on year to ¥23,496 million, while operating income fell 22.8% to ¥1,920 million.

34. Segment information
Results by operating segment
First Three Quarters, FY2011 (April 1, 2010 to December 31, 2010)(¥ million)
IndustrialGases BusinessSales(1) Sales to external
Customers(2) Sales frominter-segment
transactions andtransfers
Total
Operating income

Reportable segment
Electronics
EnergyOther Businesses
BusinessBusiness(Note 1)

Consolidated

Total

Adjustments(Note 2)214,80991,92625,727

22,775355,238-

355,238

1,273

68

1,385

2,117

4,845

(4,845)-

216,083
17,631

91,995
6,843

27,112694

24,8922,486

360,083
27,654(4,845)(1,059)355,238
26,595Notes
1. Other Businesses includes the Medical Business, Thermos Business and real estate
operations.
2. The ¥1,059 million negative adjustment for operating income comprises ¥148
million of inter-segment eliminations and companywide expenses of ¥911 million thatwere not allocated to any particular reportable segment. These companywide
expenses relate principally to basic researches that were not particularly allocated toreportable segments.
Results by operating segment
First Three Quarters, FY2012 (April 1, 2011 to December 31, 2011)(¥ million)
Industrial
Gases
Business
Sales(1) Sales toexternal
Customers(2) Sales frominter-segment
transactions andtransfers
Total
Operating income

Reportable segment
Electronics
EnergyOther
Business
Business
Businesses(Note 1)

Total

Adjustments(Note 2)

Consolidated

215,633

82,362

26,971

23,496348,464-

348,464

1,619

56

1,886

2,003

5,566

(5,566)-217,253
16,811

82,4184,029

28,857898

25,5001,920

354,030
23,659(5,566)(1,022)

348,464
22,637Notes
1. Other Businesses includes the Medical Business, Thermos Business and real estate
operations.
2. The ¥1,022 million negative adjustment for operating income comprises ¥130
million of inter-segment eliminations and companywide expenses of ¥891 million thatwere not allocated to any particular reportable segment. These companywide
expenses relate principally to basic researches that were not particularly allocated toreportable segments.
3. (Changes in depreciation and amortization methods for important depreciableassets)

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The Company has been using the declining-balance method for calculating
depreciation of property, plant and equipment other than machinery and equipment
for lease and structures (not including ancillary facilities) acquired since April 1,
1998. However, from the first quarter of the current fiscal year, we have switched tothe straight-line method.
In the new Medium-Term Business Plan, TNSC will continue to focus
management resources on growth markets such as electronics. With regard to midsized and small gas supply facilities, our principal items of property, plant andequipment for which the declining-balance method had been adopted, we expect
stable long-term utilization, with capital investments focusing on replacement works
in anticipation of stable demand from established customers while we reduceinvestment targeting facilities for new customers. Accordingly, we decided it would
be more logical to adopt the straight-line method for earnings statements in light ofthe distribution of expenses at a constant pace for long-term period.
As a result of this change, operating income in the first three quarters(consolidated basis) has increased by ¥772 million (Industrial Gases), ¥595 million(Electronics), ¥25 million (Energy) and ¥84 million (Other). Adjustments increased¥75 million.
Information regarding impairment loss on noncurrent assets or goodwill byreportable segment(Important impairment loss on noncurrent assets)
An impairment loss on idle land has been recorded in the Industrial Gases Businesssegment. The amount of impairment loss applicable to the first three quarters of thefiscal year under review is ¥103 million.
5. Subsequent Event
Commencement of a tender offer for Leeden Limited shares
On November 9, 2011, Taiyo Nippon Sanso announced details of its intention to
make a tender offer (the “Tender Offer”) for all shares of Leeden Limited, a company
listed on the Singapore Exchange, through its wholly owned subsidiary Taiyo Nippon
Sanso Singapore Pte Ltd (the “Tender Offeror”). The Tender Offer was subject to thedelisting of Leeden Limited shares. In accordance with this condition, Leeden
Limited has received the in principle approval of the Singapore Exchange to aproposal to delist the company’s shares (the “Delisting Proposal”) from the Exchangein accordance with its rules and regulations. On this basis, Taiyo Nippon Sanso
announces the commencement of the Tender Offer in line with the following. On a
related matter, the determination by the Singapore Exchange is not an indication of
the merits of the Delisting Proposal.

5Outline of the Tender Offer(1) The company subject to the Tender Offer
Leeden Limited(2) Delisting
The Tender Offer is conditional upon the consent of Leeden’s shareholders to theDelisting Proposal. For this purpose an extraordinary meeting of shareholders isscheduled to be held on February 13, 2012. Upon the subsequent completion of theTender Offer, plans are in place to delist Leeden Limited shares.
(3) Number of shares scheduled to be purchased
170,510,346 common shares (as of January 20, 2012)**1: The Tender Offer shall be deemed to have been completed when there aresufficient applications to the Tender Offer to ensure that the Tender Offeror
holds more than 50% of the total number of shares including potential shares
related to stock options (“Stock Options”) held by employees of Leeden
Limited. No maximum limit has been set with respect to the number of sharescheduled to be purchased. As of January 20, 2012, the maximum number ofpotential “Stock Option” shares was 16,815,000 shares.
*2: Prior to the completion of the Tender Offer, in the event that Leeden
Limited issues any new common shares as a result of the exercise of StockOptions, these common shares shall also be subject to the Tender Offer.
Moreover, the Tender Offeror shall offer to pay the difference between theoffer price and exercise price for any Stock Options that are not exercised at
the time of the Tender offer on the condition that holders of the Stock Options
agree not to exercise Stock Options.
(4) Number of shares scheduled to be transferred as a part of the purchase
Number of shares held prior to the purchase: 9,055,000 shares (as of January 20,2012)
Number of shares scheduled to be purchased: 170,510,346 common shares (excluding
potential Stock Option shares)
Number of shares scheduled to be held after the purchase: 179,565,346 (100% of thetotal number of shares issued and outstanding)(5) Matters agreed between the Tender Offeror and Leeden Limited
Mr. Steven Tham Weng Cheong, Chairman and Chief Executive Officer of Leeden
Limited, and other shareholders have agreed to apply for the Tender Offer withrespect to their aggregate 98,043,981 shares held (54.6% of the total number of sharesissued and outstanding).
(6) The Tender Offer commencement and completion dates
The Tender Offer commenced on January 20, 2012 and is scheduled to be completedon February 27, 2012. If, however, the terms and conditions applicable to the6application are fulfilled within the aforementioned period, a 14 or more day’s
extension shall apply from the date of completion.
(7) Offer price0.57 Singapore dollars per common share of stock

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