August 10, 2010

Consolidated Business Performance for the First Quarter of Fiscal Year 2011(based on Japan GAAP)
1. Financial result for the first quarter (April 1, 2010 to June 30, 2010)(1) Operating results(Amounts less than ¥1 million are omitted)
Net sales

117,005

Operating income
Recurring income
Net income
YoYYoY(¥ million)(¥ million)(¥ million) YoY changechangechange
84.5%
9,381
98.2%
5,261
100.7%
21.1%
9,304

96,637(22.6)%

YoYchange(¥ million)
First quarter ofFY2011First quarter ofFY2010

5,042 (44.9)%

4,733(49.8)%

2,622(49.2)%

Earnings pershare (Yen)First quarter of FY2011First quarter of FY2010

13.16
6.56(2) Financial position

First quarter of FY2011 (June 30, 2010)
Reference: FY2010 full term (March 31,2010)
Notes: Equity
First quarter of FY2011: ¥198,760 million
FY2010 full term: ¥199,078 million(As of end of terms; amounts less than ¥1 million are omitted)
Total assets
Net assets
Net assets
Equity ratio (%)(¥ million)(¥ million)
per share (¥)
634,454
213,00431.3
497.13
617,215

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 (firsrhalf)
FY2011 (fullterm)

Operating income(Amounts less than ¥1 million are omitted)
Recurring
Earnings per
Net income
incomeshare
YoY (¥ million YoY(¥ million)(Yen)change)change(¥ million)

YoYchange(¥ million)

YoYchange230,000

12.7%

15,00017.5%

14,200 14.9%

8,000 17.2%

20.01

480,000

10.8%

32,50017.9%

30,500 12.7%

17,000

42.52

7.9%

3. Outline of Business Performance and Financial Results (consolidated basis)
During the first quarter of FY2011 (April 1 to June 30, 2010), moderate recovery momentum was seenin the global economy, driven by economic growth in China and other Asian countries. Recovery
momentum held up in Japan as well, led by government stimulus policies and external demand.
Against this backdrop, business performance during the quarter was as follows. Sales increased
21.1% year-on-year to ¥117,005 million, operating income jumped 84.5% to ¥9,304 million, recurringincome rose 98.2% to ¥9,381 million, and net income for the quarter rose 100.7% to ¥5,261 million.
Breakdown of business performance by operational segment is as follows.
1(1) Industrial Gases Business
Sales of oxygen and nitrogen increased year-on-year due principally to a recovery in demand in corecustomer industries (steel and chemicals). Argon sales also rose year-on-year, benefiting frombuoyancy in the stainless steel smelting industry.
In the machinery & equipment business, sales of cutting and welding-related equipment andmaterials were flat year-on-year in Japan amid an ongoing slump in capital investment demand. Salesof air separation plants held up year-and-year, with major construction projects proceeding toschedule.
As a result of the foregoing, sales in the Industrial Gases Business came to ¥70,483 million, while
operating income totaled ¥5,938 million.
(2) Electronics Business
Recovery became clear in both domestic and overseas electronics sectors, a core customer, withdemand for semiconductors soaring chiefly in China and other Asian countries. Shipments ofelectronic materials gases, a mainstay product, to manufacturers of LCD panels and semiconductors inJapan were buoyant, and demand picked up from semiconductor manufacturers in South Korea andTaiwan. Accordingly, sales of electronic materials gases rose steeply year-on-year. Likewise, sales ofequipment for the electronics industry (including installation) rose year-on-year. However,semiconductor manufacturing equipment sales were affected by the absence of completed shipments
for large-scale projects during the quarter.
As a result of the foregoing, sales in the Electronics Business came to ¥29,417 million, andoperating income stood at ¥2,029 million.
(3) Energy Business
Import prices for LP gas soared, with the average level over the quarter up 80% year-on-year.
However, volumes shipped rose on the back of increased demand from industrial users in line witheconomic recovery in Japan, and the impact of cool spring temperatures, which affected household
and commercial energy consumption. As a result, sales increased year-on-year.
As a result of the foregoing, sales in the Energy Business came to ¥9,278 million, and operating
income to ¥384 million.
(4) Other Businesses
In Other Businesses, sales of medical-use gases were flat year-on-year (Medical Business), while salesof home-use equipment increased year-on-year. At our wholly-owned subsidiary Thermos K.K.,
overall sales of houseware products were slightly down year-on-year due to a drop in net shipments ofsports-use vacuum bottles from the beginning of spring amid unseasonably cool spring weather.
As a result of the foregoing, sales in Other Businesses came to ¥7,825 million and operating income
stood at ¥1,062 million.

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4. Segment information
Results by operating segment
First Quarter, FY2010 (April 1, 2009 to June 30, 2009)(Millions of yen)
Gas BusinessHousewaresBusiness andOthers

Machinery andEquipment BusinessTotalEliminations
Consolidatedor Corporate

Sales(1) Sales to external
67,36523,962
5,310 96,637
96,637
customers(2) Sales frominter-segment
3
1,959
8 1,972(1,972)transactions andtransfers
Total
67,36825,922
5,319 98,610(1,972)
96,637
Operating income
4,704
831
1,273 6,809(1,766)
5,042
Notes
1. Segmentation method
Products (whether developed and/or made in-house or by other companies [i.e. bought-in merchandise]) are allocated to
one of the three segments of the Gas Business, the Machinery and Equipment Business, and the Housewares Businessand 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
Business andOthers

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 related
engineering/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 Quarter, FY2010 (April 1, 2009 to June 30, 2009)(Millions of yen)
Japan
Sales
(1) Sales to external customers(2) Sales from inter-segment
transactions
Total
Operating income
Notes

NorthAmerica

Othercountries

Total

Eliminations
or Corporate

Consolidated

76,911

15,581

4,145

96,637-96.637

768

567

1,080

2,416

(2,416)-

77,6793,796

16,149
1,112

5,225
328

99,054
5,237(2,416)(194)

96,6375,042

1. 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Segment Information(1) Segment Reporting
The Company is now required to regularly review segment performance to enable evaluation by theBoard of Directors of decision-making and resource allocation, based on financial data that can beextracted 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 vacuum bottles for household use) and others.
Segments to be reported
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, 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 rental(2) Sales and Earnings Figures by Segment (Consolidated)
First Quarter, FY2011 (April 1, 2010 to June 30, 2010)(Millions of yen)Segments to be reported
Industrial
Gases

Electronics

EnergyOthers

Total

Adjustment

Total(consolidated)

Sales
Sales to external
70,48329,4179,278
7,825
117,005
117,005
customers
Sales from470
21506
723
1,721
(1,721)inter-segment
transactions andtransfers
Total
70,95429,4389,785
8,548
118,726(1,721)
117,005
Operating income
5,938
2,029
384
1,062
9,414
(109)
9,304
Notes
(1) Other Businesses includes the Medical Business, the Thermos Business and the Real Estate Business.
(2) The ¥109 million negative adjustment for segment earnings comprises ¥7 million in “Eliminations or corporate,” andexpenses of ¥117 million that could not be allocated to any particular segment. These companywide expenses relate
principally to basic research.

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