February 5, 2018
Taiyo Nippon Sanso Corporation

Consolidated Financial Performancefor the First Three Quarters of Fiscal Year Ending March 31, 2018
(Based on IFRS)(Amounts less than ¥1 million are omitted)

1. Financial results for the First Three Quarters of FYE 2018 (April 1, 2017 – December 31, 2017)(1) Operating results(Percentages indicate year-on-year change)

Core operating
incomeRevenue

Operatingincome

Net income
attributable toowners of theparent

Net income

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

First threequarters ofFYE2018

471,460

13.4

45,705

11.8

46,268

12.6

41,22351.2

39,977

53.6

52,787

66.6

First threequarters ofFYE2017

415,881(3.8)

40,885

11.3

41,076

6.6

27,263

7.8

26,0348.2

31,68085.5(Reference) Income before income taxes
First three quarters of FYE2018: ¥43,653 million [11.9%]
First three quarters of FYE2017: ¥39,027 million [4.8%]
Core operating income is calculated as operating income excluding certain gains and expenses
attributable to non-recurring factors (non-recurring items).
Basic earnings
per share (yen)First three quarters ofFYE2018
First three quarters ofFYE2017

Diluted net income
per share (yen)

92.38

―

60.16

―

(2) Financial position
Total assets(¥ million)

Total equity(¥ million)

Equity attributableto owners of theparent (¥ million)

Equity attributableto owners of theparent ratio (%)

First three quarters of FYE2018(December 31, 2017)

960,534

418,192

393,151

40.9

FYE2017 (March 31, 2017)924,281

376,862

351,576

38.0

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2.

Dividends
Annual DividendndEnd of
1 quarter
YenEnd of 2quarter
YenstEnd of 3rdquarter
YenTermend
Yen

FYE2017

―

9.00

―

FYE2018
FYE2018 (est.)

―

11.00

―

Total
Yen

11.00

20.00

11.00

22.00

Note: No revisions have been made to recently announced forecasts.
3.

Forecasts for business operations for FYE2018 full term (April 1, 2017 – March 31, 2018)(Percentages indicate year-on-year change)

Core operating
incomeRevenue(¥ million)%(¥ million)%

Operating income

Net income
attributable to ownersof the parent(¥ million)(¥ million)

Full term
635,000
9.260,000
9.660,000
Note: No revisions have been made to recently announced forecasts.
(Reference) Income before income taxes
FYE2018 full term: ¥56,000 million [11.6%]

%

11.8

48,000

Basicearnings
per share%

(Yen)

38.2

110.92

4.

Explanation concerning the appropriate use of forecasts for business operations and other notable matters
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.

General information relating to the first three quarters results
In the first three quarters of the fiscal year under review (from April 1, 2017 to December 31, 2017), 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 of environmental regulations, resulting in only a moderate deceleration. In the UnitedStates, the economy continued its moderate expansion, supported by improving employment and income levels.
Moreover, corporate earnings are expected to be boosted by the significant tax reduction that was enacted inDecember 2017. In Japan, with an increase in 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 thefirst three quarters of the fiscal year under review. Revenue on a consolidated basis increased 13.4 % year on
year to ¥471,460 million, core operating income rose 11.8% to ¥45,705 million, operating income increased
12.6 % to ¥46,268 million, and net income attributable to owners of the parent increased by 53.6 % to ¥39,977
million.
Core operating income is calculated as operating income excluding certain gains and expenses attributable tonon-recurring factors (non-recurring items).
A breakdown of business performance by reportable segment is as follows.
Segment income represents core operating income.

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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
from on-site business increased since a new on-site plant started operations in October 2017. In addition, revenue
from equipment 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 a higher sales price following an increase in the import price.
As a result, in the Gas Business in Japan, revenue increased 6.7% year on year to ¥246,382 million, while
segment income rose 4.1% to ¥23,004 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.
As a result, in the Gas Business in the United States, revenue increased 21.6% year on year to ¥128,549
million, and segment income rose 23.2% to ¥10,021 million.
Gas Business in Asia & Oceania
In the industrial gas-related field, demand for hard goods was lackluster in Singapore and Malaysia and revenue
declined. However, the consolidation of Supagas Holdings Pty Ltd in Australia as a subsidiary of the Company
in December 2016 contributed to business results.
In the electronics-related field, revenue from electronic materials gases and electronics-related equipment andinstallation 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 27.5% year on year to¥74,858 million, and segment income rose 72.9% to ¥7,274 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 5.9% year on year to ¥21,670 million, while
segment income decreased 12.2% to ¥6,943 million.
6.

Segment information
The TNSC Group conducts gas businesses in Japan and overseas, mainly for customers in the steel, chemical,and electronics 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 stainlesssteel vacuum bottles, and conducts 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.
The principal products and services included in the four segments are shown in the table below.
Business segment
Gas Business in Japan
Gas Business in theUnited States
Gas Business in Asia &Oceania
Thermos & OtherBusinesses

Main products and services
Oxygen, nitrogen, argon, carbon dioxide, helium, hydrogen, acetylene, gas- relatedequipment, specialty gases (electronic materials gases, pure gases, etc.),
electronics-related equipment and installation, semiconductor manufacturing
equipment, cutting and welding equipment, welding materials, plants and machinery,liquid petroleum gas (LPG) and related equipment, medical-use gases (oxygen,nitrous oxide, etc.), medical equipment, stable isotopes
Housewares, real-estate rental

Revenue from inter-segment transactions and transfers is based primarily on prevailing market prices.

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(1) Figures of revenue and income (loss) by reportable segment
First Three Quarters, FYE2017 (April 1, 2016 – December 31, 2016)(¥ million)
Gas
Businessin Japan

Gas
Businessin theUnitedStatesAdjustments(Note 1)

Amounts on
theConsolidated
Statements ofIncome

Gas
Businessin Asia &Oceania

Thermos& Other
Businesses

230,987

105,72958,704

20,458415,881―415,881

5,385

6,005

844

956

13,192(13,192)―

236,373

111,735

59,54921,414

429,073(13,192)

415,881

22,103

8,136

4,206

7,905

42,352(1,466)40,885

TotalRevenue(1) Revenue toexternal customers(2) Revenue frominter-segment
transactions andtransfers
TotalSegment income(Note 2)

Notes:
1. The ¥1,466 million negative adjustment for segment income is comprised of ¥309 million of intersegment
eliminations and companywide expenses of ¥1,157 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).
First Three Quarters, FYE2018 (April 1, 2017 – December 31, 2017)(¥ million)
Gas
Businessin Japan

Gas
Businessin theUnitedStatesAdjustments(Note 1)

Amounts on
theConsolidated
Statements ofIncome

Gas
Businessin Asia &Oceania

Thermos& Other
Businesses

246,382

128,549

74,85821,670471,460―

471,460

8,667

8,299

1,516

995

19,479―76,374

22,666490,939(19,479)

255,050

136,848

23,004

10,021

7,274

6,943

47,244

TotalRevenue(1) Revenue toexternal customers(2) Revenue frominter-segment
transactions andtransfers
TotalSegment income(Note 2)

(19,479)

471,460(1,539)45,705

Notes:
1. The ¥1,539 million negative adjustment for segment income is comprised of ¥463 million of intersegment
eliminations and companywide expenses of ¥1,075 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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(2) Reconciliation of segment income with income before income taxes
First three quarters of FYE2017
Segment income
Gain on sales of noncurrent assets
Share of income (loss) of associates
and joint ventures accounted forusing the equity method
Operating income
Financial revenue
Financial expenses
Income before income taxes(¥ million)
First three quarters of FYE2018(April 1, 2016 to December 31, 2016)(April 1, 2017 to December 31, 2017)

40,88545,705191

1,020―(457)

41,076
1,226(3,276)
39,027

46,2681,173(3,788)
43,653(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 ¥11,736
million.

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