July 30, 2014
To whom it may concern,
Notice Regarding Establishment of a Regional Headquarters in Southeast Asiaand Intra-Group Reorganization
Taiyo Nippon Sanso Corporation (TNSC; President & CEO: Yujiro Ichihara)
hereby announces the following details regarding its establishment of a regional
headquarters in Southeast Asia and associated plans for intra-Group reorganization(contributions in kind to a wholly-owned subsidiary and mergers of consolidated
subsidiaries).
1. Purpose of Regional Headquarters Establishment and Intra-Group Reorganization
TNSC is working to improve profitability by carrying out structural reforms on
the basis of its Medium-Term Business Plan “Ortus Stage 1," while also taking
steps to intensify business development initiatives in Southeast Asia and othergrowth markets. Although we have been generating steady earnings growth inSoutheast Asian nations as we expand operations in countries such as Singapore,Malaysia, the Philippines, Vietnam, Thailand and Indonesia, we are now aiming toachieve an even greater rate of growth in the region by establishing a regional
headquarters for these Southeast Asian operations going forward, and thereby
tasking the entity with a role that includes supporting operations of companies
under its supervision and ensuring more effective use of the region's managerialresources.
Moreover, in conjunction with setting up the regional headquarters aspreviously mentioned, we will also combine three of our Singapore-based
consolidated subsidiaries *1 under the regional headquarters, thereby integrating theSingaporean and Malaysian business operations of those companies, while also
working toward improving operational efficiencies through business expansion,and enhancing our capability to take on new market development.
*1 National Oxygen Pte. Ltd. (NOX; wholly-owned by TNSC)
Taiyo Nippon Sanso Singapore Pte. Ltd. (TNSS; 76.4% TNSC ownership)
Leeden Limited (Leeden; wholly-owned by TNSS)

12. Overview of Inter-Group Reorganization(1)

TNSC wholly-owned regional headquarters will be established in Singapore,and the regional headquarters will be provided with contributions in kind in
the form of shares of NOX and TNSS held by TNSC.

(2)

After that, the three companies NOX, TNSS and Leeden will be merged, withLeeden acting as the surviving entity.

3. Overview of the Regional Headquarters
1. Corporate Name Taiyo Nippon Sanso Holdings Singapore Pte. Ltd.
2. Details of
Operational support with respect to Group companies inBusiness
Southeast Asia, and stock ownership
3. Representative
Kunihiro Kobayashi, President (part time; Corporate
Officer of TNSC's Corporate Planning & Global OperationsDivision)
4. Location
21 Tanjong Kling Road, Jurong Town, Singapore 628047
5. Established
July 31, 2014 (planned)
6. Stated Capital
SGD 144,712,000
7. Shareholder
TNSC 100%
Structure
4. Overview of the Merged Company (Surviving Company)
1. Corporate Name Leeden National Oxygen Ltd.
2. Details ofManufacturing, wholesale and retail of welding-related
Businessequipment, safety equipment and high-pressure gas
3. Representative
Steven Tham Weng Cheong, Chairman & CEO (currentlyChairman & CEO of Leeden)
4. Location
1 Shipyard Road, Singapore 628128
5. Effective Date of September 30, 2014 (planned)
the Merger
6. Shareholder
Taiyo Nippon Sanso Holdings Singapore Pte. Ltd. 95.3% *2
Structure
Local partners (Mr. Steven Tham and others) 4.7%
*2 Some equity of local partners will be acquired in conjunction with this phase ofreorganization.

5. Impact on Operating Results
The impact on the operating results will be minimal, given that contributions
in kind will be provided to one of TNSC's wholly-owned subsidiaries and theintra-Group reorganization will be carried out among TNSC consolidated
subsidiaries.
END2

Attachment 1 – Overview of the 3 Singapore-based Consolidated Subsidiaries
1.) NOX
1. Corporate Name
2. Details ofBusiness
3. Representative
4. Location
5. Established
6. Stated Capital
7. Shareholder
Structure2.) TNSS
1. Corporate Name
2. Details ofBusiness
3. Representative
4. Location
5. Established
6. Stated Capital
7. Shareholder
Structure3.) Leeden
1. Corporate Name
2. Details ofBusiness
3. Representative
4. Location
5. Established
6. Stated Capital
7. Shareholder
Structure

National Oxygen Pte. Ltd.
Manufacturing and sales of oxygen, nitrogen and argon
Shigeyuki Osawa, Managing Director
21 Tanjong Kling Road, Jurong Town, Singapore 628047
July 27, 1982
SGD 36,918,000
TNSC 100%

Taiyo Nippon Sanso Singapore Pte. Ltd.
Control and management of business activities on the basisof equity holdings in Leeden Limited
Shigeyuki Osawa, President
21 Tanjong Kling Road, Jurong Town, Singapore 628047
August 31, 2011
SGD 105,937,000
TNSC 76.4%, Mr. Steven Tham Weng Cheong 12.0%, Mr.
Kelvin Lee Chee Fatt 6.7%, NOX 4.9%

Leeden Limited
Manufacturing, wholesale and retail of welding-related
equipment, safety equipment and high-pressure gas
Steven Tham Weng Cheong, Chairman & CEO
1 Shipyard Road, Singapore 628128
May 1, 1964
SGD 53,483,000
TNSS 100%

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Attachment 2 — Diagram of Organizational Reorganization

Current
structure

TNSC

Mr. Tham, etc.

18.7%

76.4%
100%

TNSS
4.9%

100%
LeedenSoutheast Asiansubsidiaries

NOXOperations in Singapore and Malaysia

Postreorganization

TNSC

Mr. Tham, etc.

100%

4.7%

Regional
headquarters

Operational
support, etc.

95.3%
Southeast Asiansubsidiaries

Leeden National Oxygen
Operations in Singapore and Malaysia

4