May 9, 2018
Taiyo Nippon Sanso Corporation

Consolidated Financial Performancefor Fiscal Year 2018
(Based on IFRS)(Amounts less than ¥1 million are omitted)

1.

Financial results for the FYE2018 (April 1, 2017 – March 31, 2018)(1) Operating results(Percentages indicate year-on-year change)

Core operating
incomeRevenue

OperatingincomeNet income

Net income
attributable toowners of theparent

Total
comprehensive
income(¥ million)%(¥ million)%(¥ million)%(¥ million)%(¥ million)%(¥ million)%

FYE2018

646,218

11.1

60,033

9.7

59,862

11.550,754

40.2

48,91940.8

43,596

4.3

FYE2017581,586(2.2)

54,736

15.3

53,664

9.7

36,212

18.7

34,74019.7

41,807587.2(Reference) Income before income taxes FYE2018: ¥55,897 million (11.4%) FYE2017: ¥50,176 million (7.7%)
Core operating income is calculated as operating income excluding certain gains and expenses attributable tonon-recurring factors (non-recurring items).
Return on equity
Income before
attributable toincome taxes to total
owners of the parent
assets ratio (%)(%)
FYE2018
113.04
13.3
6.0―FYE2017
80.28
10.3
5.9
―(Reference) Share of profit (loss) of associates and joint ventures accounted for using the equity method
FYE2018: ¥2,836 million
FYE2017: ¥2,397 million
Basic earnings
per share (yen)Core operating
income torevenue ratio (%)

Diluted earnings
per share (yen)

9.3
9.4

(2) Financial position

Total assets(¥ million)

Total equity(¥ million)

Equityattributable toowners of theparent(¥ million)

Equityattributable toowners of theparent ratio (%)

Equityattributable toowners of theparent per share(yen)FYE2018 (March 31, 2018)

931,047

412,072

386,457

41.5

893.01FYE2017 (March 31, 2017)924,281

376,862

351,57638.0

812.40(3) Consolidated cash flows

FYE2018

83,199(52,088)(39,859)

Balance of cash andcash equivalents at
term-end(¥ million)
47,809FYE2017

74,596(147,082)

80,77752,857

Cash flows fromoperating activities(¥ million)

Cash flows frominvesting activities(¥ million)

1

Cash flows fromfinancing activities(¥ million)

2.

Dividends
Annual Dividend

End ofEnd ofEnd ofTerm end
1st quarter 2nd quarter 3rd quarter

Yen

Yen

Yen

FYE2017

―

9.00

―

11.00

20.00

¥ million
8,658

FYE2018

―

11.00

―

12.00

23.00

9,957

FYE2019 (est.)

―

12.00

―

12.00

24.00

3.

Yen

Yen

Total

Ratio ofdividends toequity
Total amount Payout ratio
attributable toof dividends (consolidated)owners of theparent(consolidated)
%%

24.9

2.6

20.3

2.7

26.0

Forecasts for business operations for FYE2019 full term (April 1, 2018 – March 31, 2019)(Percentages indicate year-on-year change)

Core operating
incomeRevenue(¥ million)

Operatingincome

Net income
attributable toowners of theparentNet income%(¥ million)%(¥ million)%(¥ million)%(¥ million)%

Basicearnings
per share(yen)(Yen)

First half ofFYE2019

328,000

7.3

30,5004.1

31,2005.4

19,0003.5

18,0001.9

41.59

Full term

670,000

3.7

64,0006.6

64,5007.7

42,000(17.2)

40,000(18.2)

92.43(Reference) Income before income taxes First half of FYE2019: ¥29,000 million (4.8%) FYE2019 full term: ¥60,000 million(7.3%)

4. Explanation concerning the appropriate use of forecasts for business operations and other notable matters- The Taiyo Nippon Sanso Group has adopted International Financial Reporting Standards (IFRS) from the fiscalyear under review. In addition, the consolidated financial statements for the previous fiscal year are presented
based on IFRS.
- This report contains business forecasts and other forward-looking statements that are based on information
currently available to the Company and certain assumptions judged to be reasonable by management. TheCompany gives no assurances that business forecasts will be attained. Moreover, actual results may differ
materially from business forecasts due to various factors.

5. Overview of Business Results for the Fiscal Year Under Review(1) Overview
In the fiscal year under review (from April 1, 2017 to March 31, 2018), the global economy saw the Chinese
economy being underpinned by infrastructure investment led by the Chinese government, despite concerns about
the need to curtail speculative real estate investment in the country together with the strengthening ofenvironmental regulations, resulting in a steady performance. In the United States, the economy continued its
moderate expansion, supported by improving employment and income levels. Moreover, corporate earnings areexpected to be boosted by the significant tax reduction that was enacted in December 2017. Meanwhile,
uncertainties have arisen in the global economy due to the impact of U.S. trade policies. In Japan, with an increasein exports primarily in the electronics and semiconductor-related sectors, there has been an upswing in production
activity and moderate improvement in corporate earnings. Overall, economic conditions have been following a
gradual recovery path.
Against this backdrop, the Taiyo Nippon Sanso Group (TNSC Group) achieved the following results for the fiscal
year under review. Revenue on a consolidated basis increased 11.1% year on year to ¥646,218 million, coreoperating income rose 9.7% to ¥60,033 million, operating income increased 11.5% to ¥59,862 million, and net
income attributable to owners of the parent increased by 40.8% to ¥48,919million.
Core operating income is calculated as operating income excluding certain gains and expenses attributable tonon-recurring factors (non-recurring items).

2(2) Overview of Business Performance by Reportable Segment
A breakdown of business performance by reportable segment is as follows. Segment income represents core
operating income.
Gas Business in Japan
In the industrial gas-related business, revenue from air separation gases (oxygen, nitrogen, and argon), a coreproduct, performed solidly for use primarily in the key industries of steel and chemicals. In addition, revenue fromon-site business increased since a new on-site plant started operations in October 2017. Meanwhile, revenue fromequipment and plants decreased, reflecting the absence of a large air separation unit project recorded in theprevious fiscal year.
In the electronics-related field, revenue from electronic materials gases trended favorably due to increased demand
from the liquid crystal display (LCD) and semiconductor-related industries.
In the energy-related field, revenue from liquid petroleum gas (LPG) jumped substantially year on year due to ahigher sales price following an increase in the import price.
As a result, in the Gas Business in Japan, revenue increased 6.5% year on year to ¥342,449 million, while segment
income rose 4.4% to ¥30,760 million.
Gas Business in the United States
In the industrial gas-related business, there was a large contribution to revenue from the consolidation of abusiness acquired from Air Liquide Group since September 2016. In the existing business, revenue from bulk gas
rose, due partly to increased shipments of carbon dioxide gas. Shipments of packaged gases and hard goods werefirm in line with the economic recovery.
As a result, in the Gas Business in the United States, revenue increased 17.2% year on year to ¥172,646 million,and segment income rose 12.3% to ¥13,559 million.
Gas Business in Asia & Oceania
In the industrial gas-related field, revenue increased in China and in Thailand, in addition to the consolidation ofSupagas Holdings Pty Ltd in Australia as a subsidiary of the Company in December 2016 contributing to businessresults. In the electronics-related field, revenue from electronic materials gases increased significantly year on year,
due to growth in demand in China, South Korea and Taiwan.
As a result of the above, in the Gas Business in Asia & Oceania, revenue increased 20.1% year on year to¥103,166 million, and segment income rose 78.8% to ¥9,236 million.
Thermos & Other Businesses
In the Thermos & Other Businesses, revenue increased steadily due to solid sales of vacuum insulated portablemugs and tumblers in Japan.
As a result, in Thermos & Other Businesses, revenue increased 3.5% year on year to ¥27,956 million, while
segment income decreased 16.5% to ¥8,366 million.
6. Segment information
The TNSC Group conducts gas businesses in Japan and overseas, mainly for customers in the steel, chemical, andelectronics industries, and has built production and sales structures for its main products in Japan, the UnitedStates, and Asia & Oceania.
In addition, the TNSC Group manufactures and sells housewares such as stainless steel vacuum bottles, andconducts real-estate rental and other businesses.
Therefore, the Company has established the following four reportable segments: Gas Business in Japan, Gas
Business in the United States, Gas Business in Asia & Oceania, and Thermos & Other Businesses.

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The principal products and services included in the four segments are shown in the table below.
Business segment

Main products and services

Gas Business in Japan

Oxygen, nitrogen, argon, carbon dioxide, helium, hydrogen, acetylene, gasrelated equipment, specialty gases (electronic materials gases, pure gases, etc.),
electronics-related equipment and installation, semiconductor manufacturing
equipment, cutting and welding equipment, welding materials, plants andmachinery, liquid petroleum gas (LPG) and related equipment, medical-usegases (oxygen, nitrous oxide, etc.), medical equipment, stable isotopes

Gas Business in theUnited States
Gas Business in Asia &Oceania
Thermos & OtherBusinesses

Housewares, real-estate rental

The accounting methods adopted for the reported operating segments are the same as the methods adopted toprepare the consolidated financial statements. Revenue from inter-segment transactions and transfers is based
primarily on prevailing market prices.

(1) Figures of revenue and income (loss) by reportable segment
FYE2017 (April 1, 2016 – March 31, 2017)(¥ million)
Gas
Businessin Japan

Gas
Businessin theUnitedStatesAdjustments(Note 1)

Amounts on
theConsolidated
Statements ofIncome

Gas
Businessin Asia &Oceania

Thermos& OtherBusinesses

Revenue toexternal customers

321,416

147,274

85,87527,018581,586―

581,586

Revenue frominter-segment
transactions andtransfers

8,160

8,473

1,081

1,349

19,065(19,065)―

329,576

155,748

86,95728,368600,651(19,065)

581,586

29,45012,0745,165

10,01756,707(1,970)54,736

Depreciation andamortization

15,627

17,557

5,964

942

40,091(43)

40,048

Impairment loss

4―

85

―

89

―

89

Share of profit(loss) of associates
and joint ventures
accounted forusing the equity
method

104

(178)

4

4,412

4,341

(0)

4,341

Total

Revenue

Total
Segment income(Note 2)Other items

Notes:
1. The ¥1,970 million negative adjustment for segment income is comprised of ¥357 million of intersegment
eliminations and companywide expenses of ¥1,613 million that were not allocated to any particular
reportable segment. These companywide expenses related principally to basic research expenses that werenot allocated to a particular reportable segment.
2. Segment income represents core operating income, which is calculated as operating income excluding
certain gains or losses attributable to non-recurring factors (non-recurring items).

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FYE2018 (April 1, 2017 – March 31, 2018)(¥ million)
Gas
Businessin Japan

Gas
Businessin theUnitedStatesAdjustments(Note 1)

Amounts on
theConsolidated
Statements ofIncome

Gas
Businessin Asia &Oceania

Thermos& Other
Businesses

Revenue toexternal customers

342,449

172,646

103,166

27,956646,218―

646,218

Revenue frominter-segment
transactions andtransfers

10,788

11,430

2,132

1,424

25,775(25,775)―

353,237

184,076

105,299

29,380671,993(25,775)

646,218

30,76013,559

9,236

8,366

61,922(1,888)60,033

Depreciation andamortization

16,11819,319

6,603

1,219

43,261

543,266

Impairment loss

0―――0―0

Share of profit(loss) of associates
and joint ventures
accounted forusing the equity
method

279

(121)

(28)

3,357

3,487

0

3,488

Total

Revenue

Total
Segment income(Note 2)Other items

Notes:
1. The ¥1,888 million negative adjustment for segment income is comprised of ¥309 million of intersegment
eliminations and companywide expenses of ¥1,578 million that were not allocated to any particular
reportable segment. These companywide expenses related principally to basic research expenses that were
not allocated to a particular reportable segment.
2. Segment income represents core operating income, which is calculated as operating income excluding
certain gains or losses attributable to non-recurring factors (non-recurring items).

(2) Reconciliation of segment income with income before income taxes(¥ million)
FYE2017

FYE2018(April 1, 2016 to March 31, 2017)(April 1, 2017 to March 31, 2018)

Segment income

54,73660,033Gain on step acquisition
Gain on sales of noncurrent
assetsShare of profit (loss) ofassociates and joint ventures
accounted for using the equity
methodImpairment loss
Operating income
Financial revenue
Financial expenses
Income before income taxes

1,012

1,209(1,943)

(651)

(141)

(162)

－(565)

53,664

59,862

5

1,429

1,299

(4,918)(5,264)50,17655,897

7. Additional information
In the United States, the Tax Cuts and Jobs Act was enacted on December 22, 2017, and the federal corporate
income tax rate after January 1, 2018 has been reduced. Accordingly, deferred tax assets and deferred tax
liabilities as of the end of the third quarter of the consolidated fiscal year under review are calculated using aneffective tax rate based on a revised tax rate that corresponds to the consolidated fiscal year in which thetemporary differences are expected to be eliminated.
As a result, during the first three quarters of the fiscal year under review, income taxes decreased by ¥12,193
million.

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