February 5, 2019

To Whom It May Concern:
Company Name:
Representative:

Contact:

Taiyo Nippon Sanso Corporation
Yujiro Ichihara, Representative Director,President CEO(Code: 4091, 1st Section of Tokyo StockExchange)
Hisataka Ose, General Manager
Corporate Communications(TEL: 03-5788-8015)

Notice Regarding Revisions to the Numerical Targetsof the Current Medium-Term Management Plan Ortus Stage 2
Taiyo Nippon Sanso Corporation (TNSC) hereby announces that it has revised the numerical targets ofthe medium-term management plan Ortus Stage 2 for the fiscal year ending March 31, 2021, the plan’sfinal year. Ortus Stage 2 was unveiled on March 8, 2017.
1. Background to the Revisions to Numerical Targets
TNSC has acquired the shares of the corporations running a part of the European business of US
company Praxair, Inc. (industrial gas business in Germany, Spain, Portugal, Italy, Norway, Denmark,Sweden, the Netherlands, and Belgium; carbon dioxide business in the United Kingdom, Ireland, theNetherlands, and France; and helium-related business), as announced in the press release “NoticeRegarding Completed Acquisition (100% Ownership) Procedures of US Company Praxair, Inc.’s
European Businesses” dated December 3, 2018.
In addition, TNSC has been advancing acquisition procedures following the conclusion of an agreementwith Linde Gas North America LLC, a subsidiary of the German company Linde Aktiengesellschaft, toacquire a portion of its HyCO business and related assets in the United States through TNSC’s whollyowned subsidiary, Matheson Tri-Gas, Inc. (headquartered in Texas, United States), as announced in thepress release “Notice Regarding Acquisition of a HyCO Business and Related Assets in the United States”
dated December 13, 2018.
These acquisitions are expected to result in a large increase in the size of TNSC’s business, thereby
contributing significantly to consolidated business performance. Accordingly, TNSC has revised its
numerical targets for the fiscal year ending March 31, 2021, the final year of the current medium-term
management plan Ortus Stage 2. There will be no changes to the basic policies and key strategies laid outin Ortus Stage 2.
1

2. Summary of the Revisions to Numerical Targets
TNSC will adopt the adjusted net D/E ratio*1 as a new key performance indicator to evaluate financial
soundness.

FYE 2021
Initial numerical targets

FYE 2021
Revised numericaltargets

Revenue¥800.0 billion¥910.0 billion

Core operating income¥76.0 billion¥100.0 billion

Core operating income ratio

9.5 ％

11.0 ％

Overseas revenue ratio

45.0 ％

55.0 ％

ROCE

9.0 ％

7.1 ％

－1.27x *2

Adjusted net D/E ratio *1

Assumed exchange rates (US dollar → Japanese yen): ¥110 (Euro→Japanese yen): ¥125
The adjusted net D/E ratio is calculated as adjusted consolidated interest-bearing debt (the total amount of bonds and borrowings less cashand cash equivalents and amounts recognized as equity credit by rating agencies in outstanding hybrid finance) divided by adjusted
consolidated shareholders’ equity (total equity attributable to owners of parent and amounts recognized as equity credit by rating agencies inoutstanding hybrid finance).
*2 TNSC plans to reduce the adjusted net D/E ratio to 1.0x or lower in the fiscal year ending March 31, 2023.
*1（Numerical Targets by Segment）
RevenueCore operating
incomeCore operating
income ratio

Gas Business in Japan¥380.0 billion¥31.0 billion8.2 ％Gas Business in the United States¥205.0 billion¥20.0 billion

9.8 ％Gas Business in Europe¥180.0 billion¥28.0 billion

15.6 ％

Gas Business in Asia and Oceania¥115.0 billion¥13.5 billion

11.7 ％

Thermos Business¥30.0 billion¥9.5 billion

31.7 ％－(¥2.0 billion)－¥910.0 billion¥100.0 billion

11.0 ％

Segment

Elimination or corporate
Total（Reference – Investment Plan）
TNSC has added the amount of investment in the European businesses and HyCO business to the fouryear investment plan set forth in the current medium-term management plan. Based on this, TNSC has
revised the investment amount after carefully reviewing the initial investment plan from the perspectivesof profitability and efficiency.
（Total for the four-year period from the fiscal year ended March 31, 2018）*

Initial investment plan

Revised investment plan

¥340.0 billion¥1,029.5 billion*

Includes a total of ¥681.0 billion for the acquisition of the European businesses and HyCO business2