1

2

3

For the year-on -year change in foreign currencytranslations, the yen was・up by ¥2.12 against the U.S. dollar,・up by ¥4.85 against the euro,・and up by ¥6.96 against the Australian dollar.
On the downside, these changes decreased revenue by¥9.9 billion and core operating income by ¥1.1 billion.

In non-recurring profit and loss, the net result was aprofit of ¥3.5 billion of the sale of land in Japan,
impairment loss related to business restructuring, andother items.

4Please note that for the Gas Business in Europe, in theprevious fiscal year only the results for the four months
from December 2018 to March 2019 were included in theconsolidated business performance, while this year wehave recorded the full-year amounts.

5

The improvement in eliminations and corporate partly
reflects expenses of ¥2.7 billion related to the acquisitionof business in Europe recorded in the previous fiscalyear, which were not recorded this year.

67

● In the Gas Business in Japan,
First, we have the following reasons for changes inrevenue.
・Shipments of air separation gases in the Bulk & On-sitebusiness decreased, primarily in key industries.
・In addition, there was also a contribution from theacquisition of the medical equipment sales company IMICo., Ltd. in October 2018 in the previous fiscal year.
Next, turning to reasons for changes in segment income,we have the following.
・In Bulk & On-site, profit decreased following thedecrease in revenue.
・The result also includes an increase in profit due to theeffect of acquiring IMI Co., Ltd.
・In addition, while the production cost of separation gas

increased in the first half due to rising electric powerexpenses driven by rising fuel prices, the trend reversedin the second half to produce level costs over the fullyear.

8● In the Gas Business in the U.S.,First, we have the following reasons for changes inrevenue.
・In the bulk business we had favorable shipments
centered on air separation gases. The manufacturingsector in the U.S. performed steadily overall. Carbon
dioxide shipments increased with the start of a new plantin the State of Iowa.
・In the on-site business, new projects started operations
one by one in the States of Texas, Louisiana, andNebraska.
In addition, there was a contribution as expected from theHyCO business, whose acquisition was completed inFebruary 2019 in the previous fiscal year.
Next, turning to reasons for changes in segment income,we have the following.
・Industrial gas-related business was generally favorable,
centered on air separation gases.

・Bulk gas production and logistics costs increased.
・In addition, there was an increase in profit as an effectfrom acquisition of the HyCO business.
・Furthermore, as we mentioned in the first half financial
results presentation, the result includes ¥1.3 billion
recorded as non-recurring “other operating income.”9● In the Gas Business in Europe,
In this segment we presented the earnings of U.S.
company Praxair, which we acquired in December 2018.
The earnings for the previous fiscal year only include fourmonths’ of results from December to March, so wecannot make a simple comparison.

10

● In the Gas Business in Asia & Oceania,
First, we have the following reasons for changes inrevenue.

・In the bulk business, revenue decreased sharply in
China in the absence of spot demand for air separation
gases in the previous fiscal year.
・LP gas achieved steady sales in Australia.
・In specialty gases, shipment volumes of electronicmaterials gases decreased.
・Electronics-related equipment and installation saw
increasing revenue in Taiwan.
Next, turning to reasons for changes in segment income,we have the following.
・Profitability improved in the LP gas business inAustralia.
・Profits declined on lower revenues from electronics
materials gases for semiconductor manufacturers in East
Asia.
・In the previous fiscal year we recorded a total of around¥0.5 billion in one-time profits in Australia, Singapore, andMalaysia, which has not been recorded in the fiscal year
under review. The result also includes a rebound from
reporting ¥1.3 billion in impairment loss related to anatural gas liquefaction business in Indonesia in thefourth quarter of the previous fiscal year.

11● In the Thermos Business,
First, we have the following reasons for changes inrevenue.
・In Japan, sales volumes decreased for key products

due to unseasonable weather, with a cool summer and awarm winter, and the spread of COVID-19. However, thiswas offset by sales expansion of frying pans, which werelaunched in February 2019.
・Overseas, the changes in the relationship between
Japan and South Korea saw the sales environment
deteriorate with amid moves to boycott Japanese
products in South Korea. In addition, the spread of
COVID-19 lead to a slump in the operation rate at
production plants.
Next, turning to reasons for changes in segment income,we have the following.
・In Japan, profits decreased due to a decrease inrevenues.
・Overseas, the decrease in revenue in South Korea
resulted in lower profits, while the decrease in theoperation rate at production plants also resulted indecreased profits, and sales slowed at Group companies
accounted for the equity method.

12

13

14

15

16

Even in the current business environment, the scale ofour operating cash flow is expected to range between¥130.0 billion and ¥140.0 billion. Based on this operating
cash flow, we will make investments in domains withgrowth potential, while remaining mindful of financial
soundness. At the same time, we will systematicallyreduce interest-bearing debt to improve the net D/E ratio
at an early stage.

17

18

The Company's basic policy is to continuously maintain astable dividend linked to consolidated businessperformance, while remaining mindful of the need toretain earnings to enhance and strengthen the businessstructure.
For the fiscal year ended March 31, 2020, the interim
dividend per share and the year-end dividend per shareare each ¥14, for planned annual dividend of ¥28.

19

20

21

We have constructed an on-site plant on a site owned by
the Company adjacent to electronics industry users tosupply them with oxygen and nitrogen gas. This is thelargest on-site operation for the electronics industry that
the Company has ever undertaken. The supply contract
started in December 2019 and will make a full-year
contribution in the fiscal year ending March 31, 2021.
The Company’s construction schedule is proceeding asplanned with the installation of supply equipment.
Therefore, in addition to the supply of on-site gas, weexpect to progress as initially envisaged with demand forequipment and construction, as well as specialty gases.

22

To steadily maintain the production, quality and safety ofusers, it is important to ensure stable supplies ofelectronic materials gases by the Company, to monitor
this, and to exchange containers each day.
With the cooperation of electronics industry users, wehave built a next-generation gas supply system thatcombines digital technology with the Company’s many
years of accumulated handling experience and expertise.
Looking ahead, we plan to introduce the system at new
semiconductor manufacturing plants currently underconstruction in Japan. We have received orders forequipment and construction centered on this system, andwe are currently manufacturing and constructing them.
First, we will accumulate experience through the fiscal
year ending March 31, 2021, then develop the systemwith an eye on East Asia as well as in Japan.

23

24

In the Bulk Gas & On-site business, we completed air
separation units in the states of Nebraska and California
during the previous fiscal year and started to supply air
separation gas.
Currently, we are moving ahead with a new on-site
project in the South East, with completion scheduled for2021.
With an expansive production network and back-up
system spanning the entire United States, we are steadily
increasing our presence in the U.S. industrial gas market.

In the carbon dioxide gas and dry ice business, weestablished a new plant in Denison, Iowa in FYE2020.
Currently, we are planning to build or expand facilities in afurther two locations in the U.S.
Demand for dry ice used for fresh meat processing andfood transportation is increasing in the U.S., and we will
strengthen this business further during FYE2021.

25

Industrial gas demand is also increasing in the rapidly
growing economies of Southeast Asia.
The Company has made aggressive capital investments
in Vietnam, and we have gained the top share,
particularly in the southern region where we initiallyexpanded our business.
In FYE2020 we built a new air separation unit in the Phu
My region in Ba Ria-Vung Tau Province in the south,
where industrial gas demand is expected to increase.
We have built an unrivalled piping supply system in thearea, connecting three production sites with anunderground piping network, including the newly built air
separation unit.
Backed by a production capability that outstrip othercompanies and a powerful backup system, we are also
making an effort to expand sales of bulk gas.

Furthermore, we won an on-site project for the Siam
Cement Group of Thailand on Long Son Island in thesame Ba Ria-Vung Tau Province. We are proceeding withconstruction of an air separation unit targeting the start ofsupply in 2021.

26

27

The impact of the COVID-19 pandemic on the Thermos
Business has increased month by month starting fromJanuary 2020.
To begin with, a dramatic decrease in inbound tourism toJapan has almost wiped out inbound demand, particularly
at discount home electronics retailers and duty-freestores. This has in turn led to a sharp decrease in sales of
the Company’s mainstay products, such as portablemugs and soup jars.
There has been a decrease in demand from the leisuresector, as people have been refraining from goingoutdoors since before the emergency declaration
announced by the government. In addition, thecancellation of new school term events, outings, andathletics days due to suspension of school operations hasbrought shipments of stainless steel bottles and leisurerelated products to an extremely low level.
However, on the other hand, an increase in teleworking
and children staying at home has brought a focus onto
products for living comfortably at home, and the Company
has been promoting sales of such products to meet theseneeds.
Specifically, examples include vacuum insulated tumblers
for teleworking and online social gatherings, cooking
equipment such as frying pans in response to an increasein home cooking due to people refraining from going out,
and lunch boxes for use in prepared lunches for children.
We have disseminated information about these throughTV, social media, and so forth, as well as making
proposals through supermarkets, drug stores, and online
sales and other channels.

28

To start, we will work to expand sales of products tocounter heat stroke, such as sports bottles, as a strategy
for stimulating demand after schools reopen.
We will also run a personal shopping bag campaign in
response to the introduction of fees for checkout bags
starting from July 2020 (in Japan).

29

In addition, from autumn onward, we will offer new
products in our mainstay categories – portable mugs,
soup jars, and cookware such as frying pans, along withkitchenware such as tumblers and mugs. We will work
aggressively to launch these into the market and promote
their sales, aiming to recover earnings.

30

31

32