November 5, 2012
Taiyo Nippon Sanso Corporation

Consolidated Financial Performancefor the First Two Quarters of Fiscal Year 2013
(Based on Japan GAAP)
1. Financial results for the first two quarters (April 1, 2012 – September 30, 2012)(1) Operating results
Net sales(¥ million)

YoY
ChangeFirst twoquarters of
228,272(2.8)%FY2013First twoquarters of234,799(1.1)%FY2012
Note: Comprehensive income

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

YoYChange(¥ million)

YoYChange(¥ million)

YoYChange12,566(20.3)%

12,042(24.8)%(7,910)―%15,774(12.5)%

16,005(10.3)%

8,414(17.7)%

First two quarters of FY2013: ¥(10,620 million) [―%]First two quarters of FY2012: ¥5,192 million [up 219.8%]

First two quarters of FY2013

Earnings pershare (Yen)(19.93)

Diluted earnings
per share (Yen)―First two quarters of FY2012

21.13

―

Total assets(¥ million)

Net assets(¥ million)

Equity ratio (%)

604,885

206,203

31.0

607,024

219,61133.1(2) Financial position
First two quarters ofFY2013 (September 30, 2012)
FY2012 (March 31, 2012)
Reference: Equity

First two quarters of FY2013: ¥187,223 million
FY2012 full term: ¥200,835 million

12. Dividends
Annual Dividend
End of 1st quarterEnd of 2nd quarterEnd of 3rd quarter

Term end

Total

Yen

Yen

Yen

Yen

Yen

FY2012－

6.00

FY2013－

6.00

FY2013 (est.)

－

6.00

12.00

－

6.00

12.00

Note: No revisions have been made to recently announced forecasts.
3. Forecasts for business operations for FY2013(full term; April 1, 2012 – March 31, 2013)
OperatingincomeNet sales(¥ million)FY2013(full term)

474,000

YoY(¥ million)

Ordinary income

YoY(¥ million)

YoY

ChangeChange

Change(0.7)%

26,300 (15.3)%

24,300 (18.3)%

Net income(¥ million)

YoY

Earnings
per share(Yen)

Change0 (100.0)%

0.00

Note: No revisions have been made to recently announced forecasts.
4. General information relating to the first two quarter results
Overall business performance (consolidated basis)
In the first two quarters (April 1-September 30, 2012) of the fiscal year under review, withno positives to be seen, the world economy increasingly faltered due in part to the ongoingsovereign debt crisis in the Eurozone, the sluggish recovery of the U.S. economy, and aslowdown of economic growth in China and other emerging countries. Japan, too, faced
many worrisome problems, such as the appreciating yen and rising electric utility rates, butmore than any other factor, sluggish demand in the electronics industry had a major impact
on the overall economy.
Against this backdrop, first-half net sales (on a consolidated basis) fell 2.8% year
on year to ¥228,272 million, operating income slipped 20.3% to ¥12,566 million, andordinary income fell 24.8% to ¥12,042 million. Moreover, with the decision to withdraw
from our joint monosilane gas production business, an extraordinary loss of ¥23,300
million was posted, and thus, regrettably, we suffered a net loss of ¥7,910 million(compared with net income of ¥8,414 million in the first half of the previous fiscal year).
A breakdown of business performance by operational segment is as follows.
(1) Industrial Gases Business
Sales of oxygen, nitrogen, and argon increased slightly year on year, reflecting the fact thatstrong automobile production is driving the key customer industries of steel and chemicals.
Sales of air separation plants and cutting and welding equipment and materials exceeded
those of the previous fiscal year. In overseas markets, sales increased slightly, despite the2

impact of the yen’s appreciation on U.S. sales. Due in part to new consolidation effects,
sales in Asia increased substantially year on year.
As a result of the foregoing, sales of Industrial Gases Business increased 2.6%
year on year to ¥148,307 million, while operating income edged up 0.7% to ¥11,237million.
(2) Electronics Business
The electronics industry was weak overall due to sluggish demand for semiconductors,
LCD panels, solar cells, and other products. Sales of electronic materials gases andelectronics-related equipment and installations were sharply down year on year. Sales ofsemiconductor manufacturing equipment increased mainly due to shipments in Japan andto Taiwan.
As a result of the above, sales in the Electronics Business fell 17.8% year on yearto ¥46,169 million and an operating loss of ¥602 million (compared with operating incomeof ¥3,146 million in the first half of the previous fiscal year) was recorded.
Because of these circumstances, we withdrew from our joint monosilane gas, a
key electronic materials gas, production business at the end of September 2012 owing tosharply declining earnings caused by sudden decreases in production of LCD panels andthin-film solar cells, and no prospects for an upturn in the business environment.
(3) Energy BusinessAlthough shipments of LP gas for industrial use were down year on year in volume terms,sales for consumer use were strong.
As a result, sales in Energy Business decreased 1.8% year on year to ¥17,420
million, while operating income jumped 17.2% to ¥773 million.
(4) Other Businesses
In the Medical Business, sales of medical devices and equipment were brisk. In theThermos Business, sales of sports-use vacuum bottles did not meet expectations and fellslightly below those of the previous fiscal year.
As a result of the foregoing, sales in Other Businesses increased 0.7% year onyear to ¥16,375 million, while operating income climbed 17.8% to ¥1,773 million.

35. Segment information(1)First Two Quarters, FY2012 (April 1, 2011 to September 30, 2011)(¥ million)
Industrial Gases
BusinessSales(1) Sales to externalCustomers(2) Sales frominter-segment
transactions andtransfers
Total
Operating income(Segment earnings)

Reportable segment
Electronics
EnergyOther Businesses
BusinessBusiness(Note 1)

Total

Adjustments(Note 2)

Consolidated

144,608

56,17917,74816,263

234,799-

234,799

1,216

41

1,437

1,348

4,042

(4,042)-

145,824

56,22019,185

17,612

238,842(4,042)

234,799

11,155

3,146

660

1,505

16,467(693)

15,774Notes
1. Other Businesses include the Medical Business, Thermos Business and real estate operations.
2. The ¥693 million negative adjustment for segment earnings comprises ¥127 million of inter-segment
eliminations and companywide expenses of ¥565 million that were not allocated to any particular
reportable segment. These companywide expenses relate principally to basic researches that were notparticularly allocated to reportable segments.

(2)First Two Quarters, FY2013 (April 1, 2012 to September 30, 2012)(¥ million)Industrial Gases
BusinessSales(1) Sales toexternalCustomers(2) Sales frominter-segment
transactions andtransfers
Total
Operating income(loss)[Segment earnings(loss)]

Reportable segment
Electronics
EnergyOther Businesses
BusinessBusiness(Note 1)

Total

Adjustments(Note 2)

Consolidated

148,30746,16917,42016,375228,272-

228,272

760

59

884

1,342

3,047

(3,047)-

149,067

46,22918,305

17,718231,320(3,047)228,272

11,237

(602)

773

1,773

13,181(614)

12,566Notes
1. Other Businesses include the Medical Business, Thermos Business and real estate operations.
2. The ¥614 million negative adjustment for segment earnings (loss) comprises ¥101 million ofinter-segment eliminations and companywide expenses of ¥716 million that were not allocated to any
particular reportable segment. These companywide expenses relate principally to basic researches thatwere not particularly allocated to reportable segments.

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