May 11, 2011
Taiyo Nippon Sanso Corporation

Consolidated Business Performance for Fiscal Year 2011(based on Japan GAAP)
1. Financial result for the FY2011 full term (April 1, 2010 to March 31, 2011)(1) Operating results(Amounts less than ¥1 million are omitted)
Operating income
Ordinary income
Net income
YoY
YoYYoY(¥ million)(¥ million) YoY change(¥ million)(¥ million)changechangechange
FY2011
483,620
11.6%
35,46828.7%
34,16726.3%
12,736(19.1)%
FY2010433,390 (12.6)%
27,556 (5.5)%
27,058(3.2)%
15,748(4.7)%
Notes: Comprehensive income
FY2011: ¥(449 million) (101.9)%
FY2010: ¥24,101 million [―%]Net sales

Earnings pershare (Yen)

ROE

ROA

6.5%
8.3%
Reference: Equity in earnings of affiliates
FY2011: ¥1,541 million
FY2010: ¥1,385 million

FY2011FY2010

31.86
39.39

OperatingMargin
7.3%
6.4%

5.5%
4.7%

(2) Financial position

FY2011 (March 31, 2011)
FY2010 (March 31, 2010)
Reference: Equity
FY2011: ¥192,571 million
FY2010: ¥199,078 million

Total assets(¥ million)
617,676
617,215(As of end of terms; amounts less than ¥1 million are omitted)
Net assets
Net assets
Equity ratio (%)(¥ million)
per share (¥)
207,41631.2
481.71
212,39632.3
497.92

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

FY2012(first half)
FY2012(full term)

Ordinary
incomeOperating income

YoYchange(¥ million)

YoYchange(¥ million)(Amounts less than ¥1 million are omitted)
Earnings perNet income
share

YoY
YoY(¥ million)changechange(Yen)

239,000

0.7%

15,000(16.8)%

14,000 (21.5)%

7,400 (27.6)%

18.51

493,000

1.9%

35,000(1.3)%

32,000 (6.3)%

17,700 39.0%

44.28

13. Outline of Business Performance and Financial Results (consolidated basis)
Business performance for FY2011(1) Overview
During the reporting term (ended March 31, 2011), despite a generally favorable first half that
included brisk export demand backed by economic growth in Asia, especially China and India, as wellas the effects of government measures to promote purchases of automobiles, consumer electronics andother products, the Japanese economy experienced a deepening economic slowdown beginning fromthe autumn of last year. This was primarily due to the end of economic stimulus measures and adecline in exports due to the continuing appreciation of the yen following the loosening of monetary
policies in various countries.
Looking at the Group’s operating environment, demand for industrial gases in North America washeld to a modest increase. Demand for gases in Japan was strong due to continued stable operations in
the Company’s main user industries such as electronics, steel and chemicals, backed by brisk demand
for semiconductors, LCD panels, high-grade steel for automobiles, petroleum-based and otherproducts in China and other Asian countries.
The Taiyo Nippon Sanso Group suffered a temporary crisis in its ability to supply gas products,particularly in the Tohoku (northeast) region. The effects of the Tohoku earthquake and tsunami thatstruck Japan on March 11 caused extensive damage to the Group’s Sendai Sanso Center (Sendai,Miyagi Prefecture) and Pacific Gas Center (Hachinohe, Aomori Prefecture). Further, the operation ofproduction bases in the Tohoku and North Kanto regions was suspended due to power outages, andproduction facilities were shut down due to scheduled power outages following the earthquake andnuclear power plant accident. Moreover, restrictions were placed on the transportation of products
because of road damage and tight supplies of gasoline and light oil.
Under these circumstances, the Group—with the cooperation and understanding of customers,
freight transport companies, and other relevant parties—worked hard and focused its efforts on stableproduct supply, with a priority on medical use oxygen for maintaining health and saving human lives
and nitrogen gas for ensuring process safety at customer’s manufacturing facilities.
As a result, sales rose 11.6% year on year, to ¥483,620 million. On the earnings front, as a result ofongoing Group efforts to reduce costs and streamline operations through improved distribution
efficiency of liquefied gas and better procurement management of equipment and materials, operating
income came to ¥35,468 million, up 28.7% year on year, and ordinary income was ¥34,167 million,
up 26.3%. However, because a provision was recorded to cover costs incurred due to the enforcementof the Anti-Monopoly Act, disaster-related costs and others, net income declined 19.1% year on year,to ¥12,736 million.
On a non-consolidated basis, sales were up 7.8% year on year, to ¥242,320 million, while operating
income surged 43.5%, to ¥20,543 million, ordinary income jumped 50.9%, to ¥23,985 million. Net
income, on the other hand, slipped 20.9%, to ¥8,381 million due to posting of various provisions.
(2) Breakdown of business performance by operational segment
Industrial Gases Business
Demand for piped gaseous oxygen and nitrogen from steel and chemical companies, the primary usersof these piped gases, increased substantially, while demand for liquefied oxygen and nitrogen fromsmall- and medium-sized users in Japan and abroad remained strong. Gas sector sales exceeded thoseof the previous fiscal year thanks to steady demand for argon for use in stainless steel smelting andwelding and the benefits gained from mergers and acquisitions in North America.
Sales of cutting and welding equipment and materials surpassed those of the previous fiscal year
due to economic recovery in North America and a moderate pick up in demand from the automotive,shipbuilding and construction industries in Japan.
Thanks to generally favorable sales of machinery and equipment such as cryogenic air separation
plants mainly for large-scale construction projects, sales for related equipment and engineering greatly
exceeded those of the previous fiscal year.
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As a result, sales for the Industrial Gases Business rose 10.6% year on year, to ¥288,644 million, andoperating income surged 34.2%, to ¥24,128 million.
Electronics Business
Demand from the electronics industry, our primary customer, was firm, especially in China and otherAsian countries. Reflecting this trend, sales of mainstay electronics-related gases was well-above thatof the previous fiscal year. Contributing to this increase was steady demand from LCD panel
manufacturers including the Green Front Sakai factory complex, as well as fromsemiconductor-related industries. Further support came from rebounding demand from South Korean
and Taiwanese semiconductor and LCD panel manufacturers and steady demand for argon for use insilicon single crystals.
Electronics related equipment and installation projects progressed largely according to plan, withrecord shipments of compound semiconductor manufacturing equipment (metal organic chemicalvapor desposition, MOCVD) used for LED chips and power devices. Accordingly, sales in this sector
were beyond those of the previous fiscal year.
As a result, sales for the Electronics Business increased 14.3% year on year, to ¥126,495 million,and operating income climbed 28.4%, to ¥8,453 million.
Energy BusinessWith the purchase price of LP gas rising due to skyrocketing import prices, despite a slight decrease inconsumer demand, sales of LP gas were substantially above those of the previous fiscal year due to apick up in industrial demand.
As a result, sales for the Energy Business increased 16.4% year on year, to ¥37,643 million, while
operating income rose 10.7%, to ¥1,400 million.
Other Businesses
In the Medical Business, sales surpassed those of the previous fiscal year on the back of continued
strong demand for medical use oxygen and oxygen concentrators for home use. In the Thermos
Business, earnings were above those of the previous fiscal year thanks to the steady growth ofshipments of mainstay sports-use vacuum flasks and portable mugs due to the summer heat wave anda sales promotion during the fall.
As a result, sales for other business rose 4.9% year on year, to ¥30,836 million, and operating
income slipped 8.0%, to ¥3,041 million.
(3) Prospects for FY 2012
Under present global economic conditions, the forecast is for growth in Asian countries including
China to continue and the U.S. market to remain strong. A slowdown of economic growth is expectedin Japan due to the impact of the Tohoku earthquake and tsunami, so the future overall remains
uncertain.
Against this backdrop, the TNS Group will make stable product supply a top priority and take steps
to further improve earnings by implementing key strategies including the focusing of its businessresources on growing markets and regions.
Because of the Tohoku earthquake and tsunami, conditions from here on are likely to change frommoment to moment. As for future prospects, we made the following forecasts in light of what can beassumed at this juncture, and may have to revise our earnings forecast if needed.

Net sales
FY2012FY2011
YoY change (%)

493.0
483.6
1.9

Operating income
35.0
35.4
(1.3)

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Ordinary income
32.0
34.1
(6.3)

(Billions of yen)
Net income
17.7
12.7
39.0

Note: For the purposes of these forecasts, the average exchange rate of the Japanese yen against the U.S. dollar in FY2012
is assumed to be ¥85/$1

4. Segment information(1) Results by operating segment
FY2010 (April 1, 2009 to March 31, 2010)(Millions of yen)
Gas Business

Machinery andEquipment BusinessHousewares
Business andOthers

Total

EliminationsConsolidated
or Corporate

I. Sales and operating
incomeSales(1) Sales to external
300,451
113,997
18,941 433,390
433,390
customers(2) Sales frominter-segment
5
10,01234 10,052(10,052)
transactions andtransfers
Total
300,457
124,009
18,976 443,442(10,052)
433,390
Operating expenses
278,014
117,362
15,563 410,940(5,105)405,834
Operating income
22,4436,646
3,412 32,502(4,946)27,556
II. Assets, depreciation,
impairment and capital
expenditures
Assets464,741
70,93921,641 557,322
59,893
617,215
Depreciation
28,044
1,811
748 30,604(461)
30,143
Impairment loss
570
570
Capital expenditures
32,425
5,875
1,442 39,743(1,377)38,366
Notes:(1) 1. Segmentation method
Products (whether developed and/or made in-house or by other companies [i.e. bought-in merchandise]) areallocated to one of the three segments of the Gas Business, the Machinery and Equipment Business, and theHousewares Business and Others.
2. The principal products and services included in the three segments are shown in the table below.
Business segment

Main products
Oxygen, nitrogen, argon, carbon dioxide, helium, rare gases such as xenon and neon,hydrogen, medical-use gases (oxygen, nitrous oxide, etc), specialty gases (semiconductor
Gas Businessmaterials gases, standard reference gas), dissolved acetylene, liquid petroleum gas (LPG),
other gases, stable isotopes, equipment lease
Cutting and welding equipment, welding materials, cylinders, semiconductor relatedengineering/equipment, semiconductor manufacturing equipment, medical equipment, airMachinery andseparation plants (oxygen, nitrogen, argon, rare gases), cryogenic air separation plants,Equipmentultra-low-temperature equipment, high-vacuum equipment, pressure swing adsorption
Business(PSA) gas generators, hydrogen generators, gas compressors, gas expanders, liquefied gas
storage/pumps, vacuum brazing, atomic power/space development equipment and otherrelated equipment
Housewares
Stainless steel vacuum bottles (household, laboratory), vacuum thermal insulation cooking
Business andpots, assembly, processing and inspection of electronic components, maintenance of
Othersfacilities, other outsourced business(2) The operating expenses of “Eliminations or Corporate” included operating expenses of ¥3,541 million that could
not be allocated to any particular segment. The majority of these items consist of expenses incurred by the Company’sadministrative divisions.
(3) The assets of “Elimination or Corporate” included Companywide assets totaling ¥86,215 million. The majorityof these were monetary assets that were being managed, investment securities and assets related to the administrativedivision.

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(2) Results by geographical segment
FY2010 (April 1, 2009 to March 31, 2010)
JapanNorth
America

Othercountries

Total(Millions of yen)
EliminationsConsolidated
or Corporate

I. Sales and operating income
Sales(1) Sales to external customers
334,444
77,554
21,391 433,390
433,390(2) Sales from inter-segment
3,390
5,776
3,136
12,303(12,303)transactions
Total
337,834
83,331
24,528 445,694(12,303)433,390
Operating expenses
313,80278,36922,934 415,106(9,271)
405,834
Operating income
24,0314,962
1,594
30,587(3,031)
27,556
II. Assets
332,399
163,106
35,898 531,404
85,810617,215
Notes:(1) Countries and regions are segmented by their geographical proximity.
(2) Principal countries in the North America and Other Countries segments are as follows:
1. North America: The United States of America
2. Other countries: Singapore, Malaysia, Philippines, China, Taiwan etc.
(3) The operating expenses of “Eliminations or Corporate” included operating expenses of ¥3,541 million that could not
be allocated to any particular segment. The majority of these items consist of expenses incurred by the Company’sadministrative divisions.
(4) The assets of “Elimination or Corporate” included Companywide assets totaling ¥86,215 million. The majority of thesewere monetary assets that were being managed, investment securities and assets related to the administrative division.

(3) Segment Information
FY2011 (April 1, 2010 to March 31, 2011)①. Segment Reporting
The Company is now required to regularly review segment performance to enable the Board ofDirectors to make 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 ourbusinesses by product and service category, and end-user market, each category being a businessdivision. The Industrial Gases Business engages in the manufacture and marketing of gases andrelated equipment to steelmakers, chemical companies and other general industries in Japan andoverseas. Please note that the Plants & Engineering business has been folded into the Industrial Gases
Business as their core customers are similar in nature. The Electronics Business engages in themanufacture and marketing of gases and related equipment for electronics companies in Japan andoverseas. 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 andmarketing of housewares) and others.
Reporting Segments
Industrial Gases BusinessElectronics Business
Energy Business
Other Businesses

Main products and services
Oxygen, nitrogen, argon, carbon dioxide, helium, hydrogen, acetylene, gas-related
equipment, cutting and welding equipment, welding materials, plants andmachinery
Nitrogen, 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

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②. The Method for Calculating Figures of Sales, Earnings, or Losses, Assets, Liabilities andOthers
The accounting procedures for the reporting business segments are the same as contained in “Basis ofPresenting Consolidated Financial Statements”.
Segment income figures are for operating income.
Intersegment transactions and transfers are based on the current market price.
③. Figures of Sales, Earnings or Losses, Assets, Liabilities and Others by Reporting Segement
FY2010 (April 1, 2009 – March 31, 2010)(Millions of yen)
Industrial
Gases

Reporting Segments
Electronics Energy
Others

Total

Adjustment

Total(consolidated)

Sales(1) Sales to261,003110,636
32,34429,406433,390433,390
external customers
1,024(2) Sales from106
1,358
2,670
5,160
(5,160)inter-segment
transactions andtransfers
Total
262,027
110,742
33,70332,077438,551(5,160)433,390
Operating income
17,981
6,583
1,265
3,306
29,136(1,580)27,556Other
depreciation
18,018
9,466
548
1,550
29,584559
30,143Notes
1. The ¥1,580 million negative adjustment for segment earnings comprises ¥196 million of inter-segment eliminations
and companywide expenses of ¥1,383 million that were not allocated to any particular reporting segment. These
companywide expenses relate principally to basic researches that were not particularly allocated to reporting segments.
2. The TNSC has not allocated assets to any business segment.

FY2011 (April 1, 2010 – March 31, 2011)(Millions of yen)
IndustrialGases

Reporting Segments
Electronics Energy
Others

Total

Adjustment

Total(consolidated)

Sales(1) Sales to288,644
126,495
37,64330,836483,620
483,620
external customers(2) Sales from
1,724
102
1,848
2,768
6,442
(6,442)inter-segment
transactions andtransfers
Total
290,368
126,597
39,49133,604490,062(6,442)
483,620
Operating income
24,128
8,453
1,400
3,041
37,024(1,555)35,468Other
depreciation
19,594
9,607
837
1,628
31,668499
32,167Notes
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. Thesecompanywide expenses relate principally to basic researches that were not particularly allocated to reporting segments.
2. The TNSC has not allocated assets to any business segment.
(Additional Information)
FY2011 (April 1, 2010 to March 31, 2011)
Beginning from the fiscal year under review, the Company and its consolidated subsidiaries began applying “AccountingStandard for Disclosures about Segments of an Enterprise and Related Information ” (ASBJ Statement No. 17, March 27,2009) and “Guidance on Accounting Standard for Disclosures about Segments of an Enterprise and Related Information”(ASBJ Guidance No. 20, March 21, 2008).

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