February 10, 2011

Consolidated Business Performance for the First Three Quarters of Fiscal
Year 2011 (based on Japan GAAP)
1. Financial result for the first three quarters (April 1 to December 31, 2010)(1) Operating results(Amounts less than ¥1 million are omitted.)
Net sales(YoY(¥ million)change)First 3 quartersof FY 2011
First 3 quartersof fFY 2010

355,238

Operating income(YoY(¥ million)change)14.0%

26,595311,513 (17.3%)

34.0%

19,840 (22.0%)

Ordinary income(YoY(¥ million)change)26,151

Net income(YoY(¥ million)change)35.0%19,374 (23.3%)

15,09639.6%

10,812 (19.6%)

Earnings pershare (Yen)
37.76
27.04

First 3 quarters of FY 2011
First 3 quarters of FY 2010

(2) Financial position(As of end of terms; amounts less than ¥1 million are omitted.)
Total assets(¥ million)

Net assets(¥ million)

First 3 quarters of FY
621,075
2011 (Dec. 31, 2010)
Reference: FY2010 full
617,215
term (March 31, 2010)
Notes:
EquityFirst 3 quarters of FY 2011: ¥198,481 million
FY2010 full term: ¥199,078 million

Net assets
per share (¥)

Equity ratio (%)

213,15332.0

496.48212,39632.3

497.92

2. Forecasts for business operations for the FY 2011 full term (April 1, 2010 – March 31, 2011)(Amounts less than ¥1 million are omitted.)
OrdinaryEarnings
Net income
incomeper share
(YoY
(YoY
(YoY
(YoY(¥ million)(¥ million)(¥ million)(¥ million)(Yen)change)change)change)change)Net sales

Operating income

FY2011 full
480,000 10.8%
32,500 17.9%
30,500 12.7%
term
Notes: Changes in the performance forecasts during the period: None

117,000

7.9%

42.52

3. Outline of Business Performance and Financial Results (consolidated basis)
During the first three quarters of FY2011 (April 1 to December 31, 2010), the global economy
continued on a path to recovery, driven primarily by economic growth in emerging countries,
especially China and other Asian nations. Amid a continuing, albeit modest recovery, theJapanese economy slowed down from autumn to year-end, when demand for automobiles andconsumer electronics began to decline due to the negative affects of an appreciating yen on
exports and economic stimulus policies having run their course.
Against this backdrop, business performance during the first three quarters was asfollows: net sales of ¥355,238 million (up 14.0% year on year), operating income of ¥26,595(up 34.0%), ordinary income of ¥26,151 million (up 35.0%) and net income of ¥15,096 million(up 39.6%).
Breakdown of business performance by operational segment was as follows.
(1) Industrial Gases Business
Demand for oxygen and nitrogen piping from the core customer industries of steel andchemicals increased, while demand for oxygen and nitrogen liquefied gas from smaller
customers followed a recovery trend in Japan and abroad. In addition, solid demand for argon
used in welding and stainless steel refining, as well as mergers and acquisitions in North
America helped contribute to a year-on-year increase in sales of oxygen, nitrogen and argon.
Sales of cutting and welding equipment and materials were up thanks to economic recovery inNorth America and a modest rebound in demand from the automobile, shipbuilding andconstruction industries in Japan. Sales of machinery and equipment including cryogenic air
separation plants increased sharply year on year due largely to favorable demand, including thatfor large construction projects.
As a result, sales in the Industrial Gases Business were up 12.1% year on year, to¥214,809 million, while operating income climbed 33.2%, to ¥17,631 million.
(2) Electronics Business
Demand in the core customer industry of electronics rebounded remarkably, especially in Chinaand other Asian nations. Demand for mainstay electronic material gases from LCD andsemiconductor manufacturers including the Green Front Sakai factory was steady. Demandfrom South Korean and Taiwanese semiconductor and LCD manufacturers rebounded, while
demand for argon for use in the production of silicon single crystals was solid. Consequently,
sales were substantially higher than those of the corresponding period of the previous year.
Electronics related equipment and installation projects progressed largely according to plan,with brisk shipments of orders for metal organic chemical vapor deposition (MOCVD)
equipment for manufacturing compound semiconductors used in LED chips and powerdevices. Accordingly, sales were dramatically higher than those of the corresponding period of
the previous year.
As a result, sales in the Electronics Business rose 19.8%, to ¥91,926 million, andoperating income surged 44.4%, to ¥6,843 million.
(3) Energy BusinessDespite a slight decrease in consumer demand, LP gas sales increased significantly year on year
thanks to a pick up in demand for industrial gas. Nevertheless, procurement costs rose on theback of sharply rising import prices.

2

As a result, sales in the Energy Business increased 18.0% year on year, to ¥25,727
million, while operating income declined 14.4%, to ¥694 million.
(4) Other Businesses
In Other Businesses, Medical Business sales surged owing to steady demand for medical use
oxygen and oxygen concentrators for home use. Sales in the thermos business increased year
on year thanks to brisk shipments of mainstay sports-use vacuum flasks and portable mugs dueto the summer heat wave and a sales promotion during the fall.
As a result, sales in Other Businesses climbed 7.1%, to ¥22,775 million and operating
income edged up 2.0%, to ¥2,486 million.

4. Segment Information(Results by operating segment)
First three quarters, FY 2010 (April 1 to December 31, 2009)(Millions of yen)
Gas
Business

Machinery
Housewares
andBusiness andEquipment
OthersBusiness

Total

Eliminations or
Corporate

Consolidated

Sales(1) Sales to external
221,100
76,124
14,288 311,513
311,513customers(2) Sales from intersegment transactions
4
7,112
26
7,143
(7,143)and transfers
Total
221,105
83,236
14,314 318,657(7,143)
311,513
Operating income
16,115
4,337
2,681
23,134(3,293)
19,840Notes
1. Segmentation method
Products (whether developed and/or made in-house or by other companies [i.e. bought-in merchandise]) areallocated to one of the three segments of the Gas Business, the Machinery and Equipment Business, and theHousewares Business and Others.
2. The principal products and services included in the three segments are shown in the table below.
Business segment
Main products
Oxygen, nitrogen, argon, carbon dioxide, helium, rare gases such as xenon andneon, hydrogen, medical gases(oxygen, dinitrogen monoxide), specialty gases
Gas Business(semiconductor materials 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, medicalequipment, air separation plants (oxygen, nitrogen, argon, rare gases), cryogenic
Machinery and Equipment
air separation plants, ultra-low-temperature equipment, high-vacuum equipment,
Businesspressure swing adsorption (PSA) gas generators, hydrogen generators, gas
compressors, gas expanders, liquefied gas storage/pumps, vacuum brazing, atomic
power/space development equipment and other related equipment
Stainless steel vacuum bottles (household, laboratory), vacuum thermal insulation
Housewares Business andcooking pots, assembly, processing and inspection of electronic components,
Othersmaintenance of facilities, other outsourced business3

(Results by geographical segment)
First three quarters, FY 2010 (April 1 to December 31, 2009)(Millions of yen)

NorthAmericaJapanSales(1) Sales to externalcustomers(2) Sales from intersegment transactions
Total
Operating income
Notes :

Othercountries

Total

Eliminations orCorporate

Consolidated

238,762

57,172

15,579311,513-

311,513

2,783

3,529

2,628

8,941

(8,941)-

241,54516,917

60,701
3,399

18,207
1,283

320,455
21,600(8,941)(1,759)311,513
19,8401.Countries and regions are segmented on geographical proximities.
2. 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.

(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, basedon 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, eachcategory being a business division. The Industrial Gases Business engages in the manufacture
and marketing of gases and related equipment to steelmakers, chemical companies and othergeneral industries in Japan and overseas. Please note that the Plants & Engineering businesshas been folded into the Industrial Gases Business as their core customers are similar in nature.
The Electronics Business engages 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), Thermos Business (manufacture and marketing of householdappliances) and others.
Reporting Segments
Industrial Gases BusinessElectronics Business

Energy Business
Other Businesses

Main products and services
Oxygen, nitrogen, argon, carbon dioxide, helium, hydrogen, acetylene, gasrelated 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, nitrous oxide, etc), medical equipment, stable
isotopes, housewares, real-estate rental

42. Sales and Earnings Figures by Reporting Segment
First Three Quarters, FY2011 (April 1 to December 31, 2010)(Millions of yen)
Reporting Segments
Industrial
Gases

Electronics

EnergyOthers

Total

Adjustment

Total(consolidated)

Sales
Sales to external
214,80991,92625,727
22,775355,238
355,238
customers
Sales from
1,273
68
1,385
2,117
4,845
(4,845)inter-segment
transactions andtransfers
Total
216,083
91,995
27,112
24,892360,083(4,845)355,238
Operating
17,631
6,843
694
2,486
27,654(1,059)26,595incomeNote: The ¥1,059 million negative adjustment for segment earnings comprises ¥148 million of inter-segment
eliminations and companywide expenses of ¥911 million that were not allocated to any particular reportingsegment. These companywide expenses relate principally to basic researches that were not particularly allocatedto reporting segments.

(Reference)
Business segments for the first three quarters of FY2010 have been modified into the following
new segments.
First Three Quarters, FY2010 (April 1 to December 31, 2009)(Millions of yen)
Reporting Segments
Industrial
Gases

Electronics

EnergyOthers

Total

Adjustment

Total(consolidated)

Sales
Sales to external
191,676
76,76021,80821,267
311,513
311,513customers
Sales from933
669541,971
3,926(3,926)
inter-segment
transactions andtransfers
Total
192,61076,82722,76323,238315,440(3,926)
311,513
Operating
13,231
4,738
811
2,437
21,219(1,378)
19,840incomeNote: The ¥1,378 million negative adjustment for segment earnings comprises ¥385 million of inter-segment
eliminations and companywide expenses of ¥992 million that were not allocated to any particular segment.
These companywide expenses relate principally to basic researches that were not particularly allocated toreporting segments5