November 10, 2010

Consolidated Business Performance for the First Two Quarters of
Fiscal Year 2011 (based on Japan GAAP)

1. Financial result for the first two quarters (April 1, 2010 to September 30, 2010)(1) Operating results(Amounts less than ¥1 million are omitted)
Net salesFirst twoquarters of
FY2011First twoquarters of
FY2010Operating income
YoY(¥ million)changeOrdinary income
YoY(¥ million)changeNet income(¥ million)

YoYchange237,306

16.2%

18,03741.3%

17,83644.3%

10,22249.7%

204,157(20.2)%

12,761 (29.7)%

12,358(32.5)%

6,828(31.3)%(¥ million) YoY change

Earnings pershare (Yen)First two quarters of FY2011First two quarters of FY2010

25.57
17.08(2) Financial position(As of end of terms; amounts less than ¥1 million are omitted)
Total assets
Net assets
Net assets
Equity ratio (%)(¥ million)(¥ million)
per share (¥)
First two quarters of FY2011 (Sept. 30,621,1062010)
Reference: FY2010 full term (March 31,617,2152010)
Notes: Equity
First two quarters of FY2011: ¥197,687 million
FY2010 full term: ¥199,078 million

212,08631.8494.46

212,39632.3

497.92

2. Forecasts for business operations for the FY 2011 full term (April 1, 2010 – March 31, 2011)
Net sales

FY2011 (fullterm)

Operating income(¥ million)

YoYchange(¥ million)

YoYchange480,000

10.8%

32,500

17.9%(Amounts less than ¥1 million are omitted)
Ordinary
Earnings perNet income
incomeshare
YoY
YoY(¥ million)(¥ million)(Yen)changechange30,500 12.7%

17,000

7.9%

42.52

Note: Changes in the performance forecasts during the period: None
3. Outline of Business Performance and Financial Results
During the first two quarters of FY2011 (April 1, 2010 to September 30, 2010), recovery
momentum in the global economy continued, driven by economic growth in emerging countries,
especially China and other Asian countries. Despite the effects of an appreciating yen, recovery
momentum held up in Japan as well, led by government stimulus policies and strong externaldemand.
Against this backdrop, business performance during the first two quarters was as follows.
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Sales increased 16.2% year on year to ¥237,306 million, operating income jumped 41.3% to¥18,037 million, ordinary income rose 44.3% to ¥17,836 million, and net income for the quarterrose 49.7% to ¥10,222 million.
Breakdown of business performance by operational segment is as follows.
(1) Industrial Gases Business
Sales of oxygen and nitrogen increased year on year due principally to an overall recovery indemand in the core customer industries of steel and chemicals. Argon sales also rose year on year,
benefited from buoyant demand in the stainless steel smelting industry.
In the machinery & equipment business, despite a late, albeit slow recovery in domesticdemand amid an ongoing slump in capital investments, sales of cutting and welding-related
equipment and materials exceeded those of the corresponding year earlier period thanks to higher
sales in North America and of air separation plants year-on-year, with major construction projects
proceeding to schedule.
As a result of the foregoing, sales in the Industrial Gases Business climbed 14.4% to¥142,964 million, while operating income increased 31.0% to ¥11,054 million.
(2) Electronics Business
There was a positive trend toward demand recovery in both domestic and overseas electronics
sectors, a core customer, with favorable global demand for semiconductors chiefly in China andother Asian countries. Shipments of electronic materials gases, a mainstay product, tomanufacturers of LCD panels and semiconductors in Japan were buoyant, and demand picked up
from semiconductor manufacturers, primarily in South Korea and Taiwan. As a result, sales
surpassed those of the previous fiscal period. In addition, electronics-related equipment,
engineering and semiconductor manufacturing equipment (MOCVD equipment) sales exceeded
those of the corresponding year earlier period owing to the smooth delivery of completed projects
during the quarter.
As a result of the foregoing, sales in the Electronics Business rose 21.0% to ¥61,751
million, and operating income jumped 100.7% to ¥5,217 million.
(3) Energy Business
Import prices for LP gas soared, with the average price level up 45% year on year. However,volumes shipped rose mainly on the back of increased demand from industrial users in line witheconomic recovery in Japan.
As a result of the foregoing, sales in the Energy Business rose 24.7% to ¥16,698 million,
while operating income declined 17.9% to ¥471 million.
(4) Other Businesses
In Other Businesses, sales in the medical-related business surpassed those of the previous
corresponding period thanks to brisk sales of home-use equipment. At our wholly-owned
subsidiary Thermos K.K., despite sluggish sales of sports-use vacuum bottles, our mainstay product,from the beginning of spring amid unseasonably cool spring weather, sales increased year on year
due to a rebound in demand from the extreme summer heat.
As a result of the foregoing, sales in Other Businesses climbed 7.5% to ¥15,890 million
and operating income rose 5.2% to ¥2,088 million.

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4. Segment information
Results by operating segment
First Two Quarters, FY2010 (April 1, 2009 to September 30, 2009)(Millions of yen)
Gas Business

Machinery andEquipment Business

142,603

51,3953

5,028

142,607
9,608

56,423
2,999

Sales(1) Sales to externalcustomers(2) Sales frominter-segment
transactions andtransfers
Total
Operating income

Housewares
Business andOthers

Eliminations
Consolidated
or Corporate

Total

10,159 204,157-204,157

5,049(5,049)-10,176 209,207
2,182 14,790(5,049)(2,028)204,157
12,761

17Notes
1. Segmentation method
Products (whether developed and/or made in-house or by other companies [i.e. bought-in merchandise]) are allocatedto one of the three segments of the Gas Business, the Machinery and Equipment Business, and the Housewares
Business and Others.
2. The principal products and services included in the three segments are shown in the table below.
Business segment
Gas Business

Machinery andEquipment BusinessHousewares Businessand Others

Main products
Oxygen, nitrogen, argon, carbon dioxide, helium, rare gases such as xenon and neon,hydrogen, medical gases (oxygen, dinitrogen monoxide), specialty gases (semiconductormaterials 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, airseparation plants (oxygen, nitrogen, argon, rare gases), cryogenic air separation plants,
ultra-low-temperature equipment, high-vacuum equipment, pressure swing adsorption(PSA) gas generators, hydrogen generators, gas compressors, gas expanders, liquefied gas
storage/pumps, vacuum brazing, atomic power/space development equipment and otherrelated equipment
Stainless steel vacuum bottles (household, laboratory), vacuum thermal insulation cooking
pots, assembly, processing and inspection of electronic components, maintenance offacilities, other outsourced businessResults by geographical segment
First Two Quarters, FY2010 (April 1, 2009 to September 30, 2009)(Millions of yen)JapanSales(1) Sales to external customers(2) Sales from inter-segment
transactionsTotal
Operating income

NorthAmerica

Othercountries

Total

Eliminations
or Corporate

Consolidated

158,350

35,9209,887

204,157-

204,157

1,348

1,616

2,000

4,964

(4,964)-

159,698
10,77337,536
1,817

11,887886

209,122
13,477(4,964)(715)

204,157
12,761Notes
1. Countries and regions are segmented based on geographical proximities.
Principal countries and regions outside Japan are as follows:(1) North America: The United States of America3(2) Other countries: Singapore, Malaysia, Philippines, China, Taiwan etc.

Segment Information(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 our businesses by product and service category, and end-user market, each category
being a business division. The Industrial Gases Business engages in the manufacture and marketingof gases and related equipment to steelmakers, chemical companies and other general industries inJapan and overseas. Please note that the Plants & Engineering business has been folded into theIndustrial Gases Business as their core customers are similar in nature. The Electronics Businessengages 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), ThermosBusiness (manufacture and marketing of household appliances) and others.
Reporting Segments
Industrial Gases Business

Main products and services
Oxygen, nitrogen, argon, carbon dioxide, helium, hydrogen, acetylene, gas-related
equipment, cutting and welding equipment, plants and machinery
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, dinitrogen monoxide, etc), medical equipment, stable
isotopes, housewares, real-estate rentalElectronics Business

Energy Business
Other Businesses(2) Sales and Earnings Figures by Reporting Segment
First Two Quarters, FY2011 (April 1, 2010 to September 30, 2010)(Millions of yen)
Reporting Segments

Sales
Sales to externalcustomers
Sales frominter-segment
transactions andtransfers
Total
Operating income

EnergyAdjustment

Total(consolidated)

237,306-

237,306

1,439

3,354

(3,354)-

17,3302,088

240,660
18,831(3,354)(794)

237,306
18,037

Industrial
Gases

Electronics

Others142,964

61,751

16,69815,890

905

38

970

143,870
11,05461,7895,217

17,669471

Total

Note: The ¥794 million negative adjustment for segment earnings comprises ¥186 million of inter-segment
eliminations and companywide expenses of ¥607 million that were not allocated to any particular reporting segment.
These companywide expenses relate principally to basic researches that were not particularly allocated to reportingsegments.

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(Reference)
Business segments for the first two quarters of FY2010 have been modified into the following newsegments.
First Two Quarters, FY2010 (April 1, 2009 to September 30, 2009)(Millions of yen)
Reporting Segments

Sales
Sales to externalcustomers
Sales frominter-segment
transactions andtransfers
Total
Operating income

EnergyAdjustment

Total(consolidated)

204,157-

204,157

1,297

2,496(2,496)-

16,075
1,984

206,653
13,597(2,496)(836)

204,157
12,761

Industrial
Gases

Electronics

Others124,953

51,03013,395

14,777529

44624

125,483
8,439

51,0752,600

14,019573

Total

Note: The ¥836 million negative adjustment for segment earnings comprises ¥186 million of inter-segment
eliminations and companywide expenses of ¥649 million that were not allocated to any particular segment. Thesecompanywide expenses relate principally to basic researches that were not particularly allocated to reporting segments
Note to significant changes in shareholders’ equity: None..

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