May 9, 2012
Taiyo Nippon Sanso Corporation

Consolidated Business Performancefor Fiscal Year 2012
(Based on Japan GAAP)
1. Financial results for the FY2012 full term (April 1, 2011 – March 31, 2012)(1) Operating Results(Amounts less than ¥1 million are omitted)
Net sales(¥ million)

Operating income

YoY
ChangeFY2012477,451(1.3)%FY2011
483,620
11.6%
Note: Comprehensive income
FY2012: ¥16,222 million [―%]FY2011: ¥(449 million) [―%]

Ordinary income

Net income(¥ million)

YoYChange(¥ million)

YoYChange(¥ million)

YoYChange31,06735,468(12.4)%
28.7%

29,73034,167(13.0)%
26.3%

21,20012,736

66.5%(19.1)%

Dilutedearnings
per share (Yen)FY201253.33―
FY201131.86―
Reference: Equity in earnings of affiliates
FY2012: ¥1,158 million
FY2011: ¥1,541 million
Earnings pershare (Yen)

ROE
10.8%
6.5%

OperatingMargin

ROA
4.9%
5.5%

6.5%
7.3%

(2) Financial Position
FY2012 (March 31, 2012)
FY2011 (March 31, 2011)
Reference: Equity
FY2012: ¥200,835 million
FY2011: ¥192,571 million

Total assets(¥ million)
607,024
617,676Net assets(¥ million)
219,611
207,416

Equity ratio (%)
33.1
31.2

Net assets
per share (¥)
506.02481.71(3) Consolidated Cash FlowsFY2012FY2011

Cash flows from
Cash flows fromoperating activities investing activities(¥ million)(¥ million)
45,986(32,748)
65,897(44,834)

1

Cash flows from
Balance of cash and cash
financing activities
equivalents at term-end(¥ million)(¥ million)(23,536)
33,275(3,343)43,877

2. Dividends
Annual Dividend

FY2011FY2012FY2013 (est.)

End ofEnd ofEnd of
1st
2nd
3rd
quarter quarter quarter
Yen
Yen
Yen
6.00
－－6.00－－6.00
－－

Total
amount ofdividends

Termend

Total

Yen
6.00
6.00
6.00

Yen (¥ million)
12.00
4,798
12.00
4,764
12.00

Payout ratio(consolidated)

Ratio ofdividends tonet assets

%%
37.7
22.5
27.4

2.4
2.4

3. Forecasts for business operations for FY2013 full term (April 1, 2012 – March 31,2013)
Net sales(¥ million)

YoY

Operating income

Ordinary income(¥ million)(¥ million)

ChangeFirst-half(cumulative)

Full term

YoY
ChangeYoY(%: YoY)
Net incomeEarnings
per share(¥ million)

ChangeYoY(Yen)Change232,000(1.2)%

14,800(6.2)%

13,300(16.9)%

7,600

9.7%

19.15

486,000

1.8%

32,8005.6%

30,2001.6%

17,400(17.9)
%

43.84

4．Analysis of business results(1)Overview
During the reporting period, in spite of signs of a recovery by the US economy, the outlook
for the global economy remained unclear overall against the background of a worsening
European sovereign debt crisis, slower growth in the emerging economies, and the disruptions
to supply chains caused by the floods in Thailand. Meanwhile, the situation for the Japanese
economy became very serious. The economy as a whole was impacted by the earthquake andtsunami of March 11 and by increasingly difficult electric power supply problems resulting
from the nuclear power plant disaster, as well as by the further steep rise in the yen’s
exchange rate.
Turning to the operating environment of the Taiyo Nippon Sanso Group, the overseas
Group experienced a slow recovery in demand for industrial gases in the North American
market, while demand for gases also held firm from major industries in Asian countries,
notably China.
In domestic operations, while a gradual recovery was seen in production activity, which had
slumped following the earthquake and tsunami, demand as a whole was weak, due to a falloff
in demand from the electronics industry.
Against this backdrop, sales on a consolidated basis posted a 1.3% year on year decline, to¥477,451 million, while operating income fell 12.4% to ¥31,067 million and ordinary income
was down by 13.0% at ¥29,730 million.
As a result of the posting of capital gains in the amount of ¥6,700 million of the Group’s
Safe Delivery Source (SDS) and Vacuum Actuated Cylinder (VAC) operations outside Japan,
net income came to ¥21,200 million, for a year on year increase of 66.5%.
2

On a non-consolidated basis, the Company recorded sales of ¥228,471 million (down 5.7%year on year), operating income of ¥14,913 million (down 27.4%), ordinary income of¥17,353 million (down 27.7%), and net income of ¥11,487 million (up 37.0%).
(2)Breakdown of business performance by operational segment（Industrial Gases Business）
Owing to the impact of the March 11 disaster, demand for the Group’s gases from the iron& steel and chemical industries, who are its principal users, fell sharply at the start of thereporting term, but followed a gradually recovery path thereafter. Despite this, however,sales of the Group’s principal products – oxygen, nitrogen, and argon – declined slightly
below the previous year’s level, due to weaker exports as a result of the yen’s steep
appreciation and the impact of the Thai floods. In machinery and equipment, sales of cuttingand welding equipment rose over the previous term, mainly in the Japanese market, whilesales of air separation plants fell sharply, owing to weaker demand for large-scale facilities.
In overseas operations, amid recovering demand the Group’s business generally trended
favorably, thanks partly to an expansion of operational scale through M&A in NorthAmerica. As a result, sales for the Industrial Gases Business edged up by 0.8% year on year,to ¥291,057 million, whereas operating income posted a decrease of 10.0%, to ¥21,712
million.
（Electronics Business）
In the electronics industry, we experienced slack demand from our principal users in thedomestic market, notably makers of semiconductors, LCD panels, and solar cells, owing to
the effects of the March 11 disaster, the yen’s steep appreciation, and the floods in Thailand.
Although demand for electronics-related gas in the Korean, Taiwanese, Chinese markets heldsteady, sales as a whole fell sharply from the previous year, due to the major falloff indomestic shipments. Electronics-related equipment and installation projects also recorded ayear on year decline in sales amid a weakening in demand for capital investment. Despite anincrease in orders for semiconductor manufacturing equipment from Korea and Taiwan, sales
overall fell sharply as the leading users in the Japanese market called a halt to capital
investment plans.
As a result, sales for the Electronics Business posted an 8.9% year on year decline, to¥115,294 million, while operating income was down by 30.0%, at ¥5,914 million.
（Energy Business）
Despite a decline in shipment volume, sales of LP gas posted a year on year increase on
the back of the ongoing rise in import prices.
As a result, sales for the Energy Business rose 3.3% year on year, to ¥38,881 million,
while operating income climbed by 19.1% to ¥1,667 million.

3

（Other Businesses）
In the Medical Business, medical equipment sold well, particularly equipment for homeuse, and sales surpassed the previous year’s level. In the Thermos Business, sales wereunable to bounce back from a first-half slump, ending down from the previous term’s level.
As a result, sales for the Other Businesses category rose 4.5% year on year, to ¥32,218million, while operating income slipped by 10.5%, to ¥2,723 million.
(3)Prospects for FY2013
Regarding the global economy, while the US economy is expected to stage a gradual
recovery, fears of a financial crisis stemming from Europe’s sovereign debt problems, inaddition to the high level of crude oil prices, leave no room for optimism. The outlook for theJapanese economy, too, remains unclear overall, against the backdrop of electric power supply
constraints and the current trend of the yen’s exchange rate.
Amid these circumstances, the TNS Group will work to secure adequate earnings byfocusing management resources on growing markets and regions, and by implementing costcutting measures.
(Billions of yen)
Net sales
Operating income
Ordinary income
Net income
FY2013
486.0
32.8
30.2
17.4
FY2012
477.4
31.0
29.7
21.2
YoY change (%)
1.8
5.6
1.6
(17.9)
Note: For the purposes of these forecasts, the average exchange rate of the Japanese yen against the U.S.
dollar in FY2013 is assumed to be ¥80/$15．Basic Company policy on profit allocation, and dividend payments for thereporting 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
from retained earnings twice a year, in the form of a semiannual interim dividend and a yearend dividend. This distribution of retained earnings is determined by the annual general
meeting of the Company’s shareholders in the case of the term-end dividend, and by theCompany’s Board of 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, 2013), too, the management of the Company
plans to pay an annual dividend of ¥12 per share, similarly consisting of term-end and interim
payments of ¥6 each.

46．OtherAs part of the Company’s takeover bid (via the Company’s subsidiary Taiyo Nippon SansoSingapore Pte. Ltd.) for Leeden Limited, a company listed on the Singapore Stock Exchange,
which is predicated on the delisting of Leeden from that exchange, the subsidiary on Feb. 22,
2012 purchased shares of Leeden, thereby acquiring a stake of over 50% of all issued stocks inLeeden. Leeden thereby became a subsidiary of Taiyo Nippon Sanso Singapore. As the valueof Leeden’s stated capital exceeds 10% of the value of the Company’s stated capital, Leedenis classified as a Special Subsidiary of the Company. This change will have only aninsignificant effect on the Company’s business performance for the reporting term.

7．Matters relating to the business terms, etc. of consolidated subsidiaries
Account closing dates of the Company’s consolidated subsidiaries are as follows:
December 31: 65 overseas consolidated subsidiaries
March 31: 46 domestic consolidated subsidiaries
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, 2012 and the consolidated
account closing date of March 31, 2012, the accounts are adjusted where necessary.
The account closing date of Jomo Natural Gas Co., Ltd. has been changed to March 31.

8．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 andrelated equipment to steelmakers, chemical companies and other general industries in Japanand overseas. Please note that the Plants & Engineering business has been folded into theIndustrial 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(manufacture and marketing of housewares) and others.
The principal products and services included in the four segments are shown in the tablebelow.
5Businesssegment
IndustrialGases BusinessElectronics
Business
EnergyBusinessOthers

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
the Company’s reporting segments
The accounting procedures for the reporting business segments are the same as thosecontained in “Basis of Presenting Consolidated Financial Statements”.
Segment income figures are for operating income.
Intersegment transactions and transfers are based on the current market price.
（Change in method of depreciating depreciable assets）
The Company has hitherto applied the declining-balance method of depreciation to all
items within the category of “property, plant and equipment” with the exception ofmachinery or equipment for lease, and buildings (excluding attached facilities) acquiredsince April 1, 1998. With effect from the reporting business term, however, the straightline method of depreciation has been adopted.
Under the Company’s New Medium-Term Business Plan, we intend to continue
focusing management resources on growing markets such as the electronics industry. At
the same time, while carrying out capital investments, with regard to small- and mediumscale gas supply facilities – which are a major category of property, plant and equipment towhich we have hitherto applied the declining-balance method of depreciation – while
investments for new customers have been declining, we plan to focus investments on
replacement and upgrading as demand for gas from existing customers is expected to holdfirm and thus the facilities can be expected to operate steadily over a long period.
Consequently, we have decided that periodic accounting of profit and loss, employing thecost allocation possible with the straight-line method of depreciation, would be morerational.
As a result of this change, operating income of the four reporting segments for thebusiness term under review increased by ¥1,057 million for the Industrial Gases Business,by ¥850 million for the Electronics Business, by ¥34 million for the Energy Business, andby ¥115 million for Other Businesses, while the adjustment for inter-segment eliminations
and companywide expenses increased by ¥107 million.

6

(3)Figures of sales, earnings or losses, assets, liabilities and others by reporting segement
FY2011 (April 1, 2010 – March 31, 2011)(Millions of yen)
Reporting Segments

Adjustment(Notes) 1

Total(consolidated)

483,620―

483,620

2,768

6,442

(6,442)―39,491
1,400

33,6043,041

490,062
37,024(6,442)(1,555)

483,620
35,468837

1,628

31,668499

32,167

Industrial
Gases

ElectronicsEnergy

OthersTotal

288,644

126,495

37,64330,836

1,724

102

1,848

290,368
24,128

126,597
8,453

19,594

9,607

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

1. The ¥1,555 million negative adjustment for segment earnings comprises ¥186 million of inter-segment
eliminations and companywide expenses of ¥1,369 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 TNSC has not allocated assets to any business 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
and transfers
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 TNSC has not allocated assets to any business segment.

7

(4)Additional Information
FY2011 (April 1, 2010 to March 31, 2011)
1. Results by Geographical Segment(1) Sales(Millions of yen)JapanUnited States
Other
Total
358,978
78,58646,054
483,620
Note: Sales are classified according to the countries or regions of location of customers.

(2) Property, plant and equipment
Japan
167,331

United States
68,627

Other(Millions of yen)Total
20,535
256,494

FY2012 (April 1, 2011 – March 31, 2012)
1. Reporting by Geographical Segment(1) Sales(Millions of yen)JapanUnited States
Other
Total
352,727
81,68443,039477,451
Note: Sales are classified according to the countries or regions of location of customers.

(2) Property, Plant and Equipment
Japan160,9078

United States
69,122

Other(Millions of yen)Total
25,469255,499