Consolidated Business
Performance for FY2012(Year Ended March 2012)

May 11, 2012

1. Consolidated Business Performancefor FY2012
2. Topics
3. Consolidated Full-Term Forecasts forFY2013

May 11, 20121

Consolidated Business
Performance for FY2012

May 11, 2012

Consolidated Business Performance for FY2012(Billions of yen)

FY2011FY2012FY2012FY2012

YoY(Actual)% change

Ratio to sales

Data announced
at the beginningof the period

Revised datasubsequently
announced

Sales

483.6

493.0

476.0

477.4

Operating
Income35.4

35.0

30.0

31.0

－4.4

6.5％

－12.4％

Ordinary
Income34.1

29.7－4.4

6.2％－13.0％Net Income

12.7

19.5

21.2

8.4

4.1％

4.4％

66.5％

7.3％

7.1％

2.6％

7.1％

32.0
6.5％

17.7
3.6％

6.3％

29.0
6.1％

－6.1
－1.3％

May 11, 20122

Quarterly Business Performance
Sales(Millions of yen) * Percentage denotes operating income margin

Operating Operating income(Millions of yen)income

Sales

7.3%

6.9%

6.1%

3.1%

5.2%

7.2%

6.6%

6.3%

8.0% 7.3%

7.3%

6.9% 6.6%

6.9%

6.0%

6.5%

Apr. toJun.

Jul. to
Sep.

Oct. to
Dec.

Jan. toMar.

Apr. toJun.

Jul. to
Sep.

Oct. to
Dec.

Jan. toMar.

Apr. toJun.

Oct. to
Dec.

Jan. toMar.

Jul. to
Sep.

Oct. toDec.

Jan. toMar.

FY2009FY2010Jul. toSep.

FY2011

Apr. toJun.

FY2012

May 11, 2012

Performance by Segment

May 11, 20123

Performance by Segment in FY2012(Billions of yen)

FY2011FY2012MarginOperating
Income

Sales

MarginSales

Operating
IncomeIndustrial gases

288.6

24.1

8.4％

291.0

21.7

7.5％

Electronics

126.4

8.4

6.7％

115.2

5.9

5.2％

Energy

37.6

1.4

3.7％

38.8

1.6

4.3％

Other

30.8

3.09.9％32.2

2.78.5％▲1.5

Adjustments

483.6

Total

35.4

▲97.3％

477.5

31.0

6.5％

May 11, 2012

Industrial Gases Business(Billions of yen)

Sales 288.6

291.0 +2.4 (+0.8%) Operating Income50

300

91.9

91.9+0 (+0.0%)

200

40
30

196.7

100

199.1

24.1

21.7-2.4 (-10.0%)

20+2.4 (+1.2%)

100

FY2011Ｊｐａｎ
Japan

FY2012

0FY2011

FY2012

Ｏｖｅｒseas
Overseas* The graph contains figures for both Japan and overseas sales.

May 11, 2012

4Major Industrial Gases Business (Sales)
Separated Gases
150

114.1

100

26.3
87.850114.0-0.1 (-0.1%)74.910026.7Japan≪Overseas≫

51.2

51.00

FY2011+4.2 (+18.0%)

5087.3

FY201279.4+4.4 (+6.0%)
28.1

23.8+0.4 (+1.8%)-5.7 (-0.7%)0(Billions of yen)

Other Gases+0.2 (+0.4%)

FY2011
JapanOverseas

FY2012
Overseas≪Overseas≫

Volumes up year on year; slight increase in sales
despite the impact of the strong yen

Acetylene sales remain robust in North America
Helium sales healthy on the back of spot orders athigh prices≪Japan≫≪Japan≫Sales volumes and values down due mainly tothe impact of the earthquake disaster in the firsthalf as well as financial instability in Europe andthe strong yen in the second half

Carbon dioxide sales for welding, beverage andother use firm

May 11, 2012

Major Industrial Gases Business (Sales)
Gas-related Equipment, etc.

24.2

30

6.6

20

17.6

10

26.0 +1.7 (+7.4%)
6.3-0.2 (-4.4%)

19.7

FY2011
Japan≪Overseas≫

FY201240≪Japan≫Strong sales of PSA-type nitrogen gas generator
equipmentGas supply equipment sales firm

22.8

21.1+1.7 (+8.2%)

2022.319.3

100+3.0 (+15.5%)

FY2011
JapanOverseas

Demand firm mainly for gas supply equipment;
sales down year on year due to the strong yen(Billions of yen)

45.1 +4.5 (+11.7%)

40.4

50

30+2.0 (+11.8%)

0Cutting and Welding Equipment and Materials

FY2012
Overseas≪Overseas≫
Continued inventory adjustment in North America;
non-gas product sales increased in the second half

≪Japan≫Large-scale equipment sales including plasma cutting
machinery strong

May 11, 20125

Major Industrial Gases Business (Sales)(Billions of yen)

Plants and Machinery
20

16.7

152.7

12.6 -4.0 (-24.4%)
2.7+0.0 (+0.6%)

1013.959.8-4.1 (-29.4%)

0FY2011

FY2012
JapanOverseas≪Overseas≫
Sales firm mainly in Asia
Received air separation plant orders from steel majors≪Japan≫Substantial decline in installation project sales
Major installation projects completed smoothly

May 11, 2012

Electronics Business
Sales
150

Operating Income

126.4

115.2-11.2 (-8.9%)

30.9

31.1

100

20
15+0.2 (+0.9%)

1050

0

95.5

84.1

FY2011FY2012-11.4 (-12.0%)

Japan(Billions of yen)

8.4
5.9 -2.5 (-30.0%)

50FY2011

FY2012

Overseas

May 11, 20126Major Electronics Busines (Sales)
Separated Gases

25.2

30

1.2

Electronic Material Gases

23.6 -1.5 (-6.3%)
1.2

20

55.2

60+0.0 (+0.9%)

40

22.3

20

(Billions of yen)

51.4 -3.7 (-6.8%)

25.2

23.4
-1.8 (-7.3%)

23.9

10-1.6 (-6.7%)

28.0

29.9

-1.9 (-6.5%)

0FY2011

0FY2012
JapanFY2011

FY2012
JapanOverseas≪Overseas≫

Overseas≪Overseas≫

Nitrogen sales firm in North America and Asia

Results impacted by the drop in LCD panel and solar
cell production in such countries as Taiwan and China≪Japan≫≪Japan≫Argon and nitrogen demand down due to theimpact of the earthquake disaster and a drop in
production by mainstay users

Solid recovery from the earthquake disaster bysummer
Drop in demand due to the decrease in LCD panel
and semiconductor production

May 11, 2012

Major Electronic Business (Sales)
Electronics Related Equipment andInstallation
30
20
10

24.4

23.6 -0.7 (-3.2%)

4.7

4.5
-0.1 (-3.6%)

19.7

19.1

100.2
5

7.3
3.2-4.1 (-56.2%)

7.1

0.9
+0.6 (+259.3%)
2.3-4.7 (-67.5%)-0.6 (-3.1%)

0FY2011
JapanFY2012

0FY2011

Slump in demand for equipment in North America
during the first half; recovery trend from thesecond half

≪Japan≫Decline in large-scale equipment and installation
ordersDownturn offset by the recovery in small- tomedium-scale orders; held to a slight decline

FY2012
Japan

Overseas≪Overseas≫(Billions of yen)

MOCVD Equipment

Overseas≪Overseas≫
Orders robust in Taiwan and Korea
Commenced equipment manufacturing in Korea≪Japan≫Trend toward the review of internal LED
manufacturing plans by companies in Japan
Substantial drop in capital expenditure orders

May 11, 20127

Energy BusinessSales

Operating Income(Billions of yen)

450

37.6
40

38.8+1.2 (+3.3%)

330

1.62+0.2 (+19.1%)

1.4

20

1100FY2011

FY2012

0FY2011

FY2012

May 11, 2012

Major Energy Business (Sales)
Equipment andInstallation, etc.

LP Gas
550
40

33.8

34.7

42.6

330+0.9 (+2.9%)

202

2.7+0.1 (+3.5%)

1100(Billions of yen)

FY2011FY2012≪Japan≫Despite the impact of the earthquake disaster inthe first half, volumes essentially unchanged
compared with the previous fiscal year
Increase in selling prices due to higher importprices0FY2011

FY2012≪Japan≫Equipment-related inquiries increase as a part ofpower saving and energy efficiency
countermeasures

May 11, 20128Other Businesses
Sales

Operating Income

30.8

40

1.8

30+1.3(+4.5%)

10-0.2 (-11.6%)

20

29.0

1032.2

1.6(Billions of yen)

530.6

3.0

2.7-0.3 (-10.5%)+1.6 (+5.5%)

0FY2011
Japan0FY2012

FY2011FY2012

Overseas

May 11, 2012

Major Other Businesses (Sales)
Thermos Business

Medical Business17.9+2.2 (+14.2%)

15.6

207.7
1010.0+2.3 (+30.2%)

7.90FY2011
Medical-use gases2012.5
101.1

FY2012Slight decrease in medical-use oxygen sales due
in part to the earthquake disaster
Equipment sales benefit from company
consolidation
Commenced sales of OXYMED brand hospital
equipment-0.7 (-6.3%)＋0.0(＋2.0%)+0.0(+2.0%)

11.3

10.5-0.8(-7.2%)(-7.2%)-0.8

0FY2011

FY2012
JapanEquipment, services, etc.

≪Japan≫

11.7
1.1

7.8
-0.1 (-1.2%)(Billions of yen)Overseas≪Overseas≫
Firm sales in Asia

≪Japan≫Drop in sales of portable mugs

May 11, 2012

9Topics

May 11, 2012

Topics● Highlights in Asia
1. Singapore
2. Vietnam
3. The Philippines
4. Korea● Overview of the Helium Business● Activities in the U.S.

May 11, 201210

1. Singapore
Inclusion of Leeden in the Scope of Consolidation
Summary∙ Completed tender offer in March 2012
∙ Performance reflected in consolidated
results from April 2012

Millions of yen

Leeden Limited:
Performance Trend

Millions of yen

Performance (Fiscal Year Ended December 31, 2011)
Sales: ¥12,022 million
Operating income: ¥812 million
Synergy Effects∙ Promote gas business expansion into regionsthat are as yet untapped by the Company(Indonesia, Myanmar, Cambodia, etc.)

Sales

Operating Income∙ Make the most of Leeden’s connections and productlineup in regions where the Company already operates

May 11, 2012

1. Singapore
Leeden Limited: Major Products Handled
Leeden Limited:
Sales Composition in 2011

26%

48%

May 11, 201211

1. Singapore
National Oxygen Pte.Ltd.
Specialty Gas Business Expansion
Established a mixed gas manufacturing company in Taiwan in 2011; in order tofurther expand the business, currently constructing a mixed gas manufacturing
facility in Saudi Arabia, which is expected to come online in 2012
SummaryLocationTaiwan

Saudi Arabia

Kaohs iung City , Taiwan

Al Jubail City (Pers ian Gulf)

51%

49%

NOX investment ratio

V arious mixed gas es (high-grade products ), s tandard reference gas es

Products manufactured

Major cus tomers

Petrochemical and semiconductor companies

Petrochemical complexes

Operations commenced

End of 2011

End of 2012

May 11, 2012

2. Vietnam
Vietnam Japan Gas Co., Ltd.
Market Overview[Northern Region]∙ Active expansion into new electronic equipment-, automobile- andother-related fields∙ Considering onsite supply with respect to blast furnace constructionplans by Taiwanese companies[Central Region]∙ Continued medium- and long-term iron and steel, shipbuilding andother heavy industry investment[Southern Region]∙ Numerous large-scale onsite orders targeting the iron and steel andpetrochemical sectors∙ Dynamic new liquid product demand mainly from the electronicequipment sector
VJG Capital Expenditure Plan
※Leads the market in liquefied gas production capacity in Vietnam
with a current share of approximately 40%
Region
Northern Hưng Yên Province
Region (on the outskirts of Hanoi)SouthernRegion

Dong Nai Province, Bien-hoa

Operation Commencement Date

The new plant in the southern
province of Bà Rịa–Vũng Tàu
Capacity (Nm3/h)

Online in April 2011

LON 2,500 + nitrogen gas

Completion scheduled for 2014

LON 2,900 + nitrogen gas

Online in December 1998

LON 1,000

Online in July 2005

LON 2,500

Bà Rịa–Vũng Tàu Province
Completed in February 2012
(on the outskirts of Ho Chi Minh)

LON 5,000 + oxygen and nitrogen gas

May 11, 201212

3. The Philippines
Ingasco, Inc.
Market Overview∙ Surge in foreign investment (including Japan)∙ Steady recovery in mainstay industries including semiconductors
and electronic components∙ Firm demand for liquid products for electric furnace,
shipbuilding and medical use∙ Firm demand mainly for cutting and welding and other cylinder gases

写真Ingasco Capital Expenditure Plan
※Leads the market in liquefied gas production capacity in the Philippines
with a current share of approximately 60%

Operation Commencement Date

Location
Luzon Island

Capacity (Nm3/h)

Online in October 1997

LON 4,000

Online in April 2008

LON 10,000

Completion scheduled for January 2014

LON 10,000 + nitrogen gas

Mindanao Island Completion scheduled for October 2012

Existing No. 2 plant inLuzon Island, Batangas

LON 2,000

May 11, 2012

4. Korea
SKC Airgas, Inc.
Summary
Joint-venture company established with SKC, a member of
the SK Group in Korea
Established
Location
Equity Interest
Item Manufactured

Existing Plant

June 2007
Ulsan
SKC 80%, Taiyo Nippon Sanso 20%
Oxygen and nitrogen gas⇒ Mainly liquefied gas (oxygen, nitrogen, argon)
for SKC and the SK Group⇒ Sale to local agents
MGP44000 × 2 units[Maximum Production Capacity]
Oxygen and nitrogen gas
51,000Nm3/h
Liquefied oxygen and nitrogen
8,000Nm3/h
Liquefied argon
720Nm3/hUlsan

May 11, 201213

4. Korea
SKC Airgas, Inc.
Plant Expansion
To address the increase in oxygen used by principal users

写真

Expanded Plant MGP150000×1unit[Maximum Production Capacity]
Oxygen and nitrogen gas 60,000Nm3/h
Liquefied oxygen
500Nm3/hLiquefied argon
1,060Nm3/h
Scheduled Commencement of Operations

June 2013

Future Developments
Target expansion in the gas business through collaboration with the SK Group(SK Hynix Inc. etc.)

May 11, 2012

Overview of the Helium Business㎥ million

210

Global Helium MarketCompany estimates

SupplyDemand200190
180
170160150
2006 2007 2008 2009 2010 2011 2012
May 11, 201214

Overview of the Helium Business
New U.S. Helium Plant
Summary・Location: Wyoming State
・Joint-venture with APCI・Annual Production Capacity: 6,000,000 m3
・Company Annual Take Up Limit: 3,000,000 m3
・Operations Commence: End of 2012

Production volumes to double in 2014

Global share 9%
Company estimates

May 11, 2012

Overview of the Helium Business
New Construction of Helium Filling facilities
China∙ Location: Fushun, Liaoning Province∙ Operations commence : End of 2012
※Second unit following Shanghai

FushunShenyangIndia∙ Location: Outskirts of Delhi(northern region of India)∙ Operations Commenced: March 2012
※Second unit following Pune (mid-western region)

Changxing
Island400ｋm

DalianToward filling facilities in 18 locations in five countries worldwide

May 11, 201215

Overview of the Helium BusinessHelium Container Expansion
What is a helium container?
∙ Indispensable in the transport and storage of ultra-low-temperature liquid helium∙ Taiyo Nippon Sanso has manufactured high-performance helium containers since 1991
Employ Ultra-Low-Temperature Vacuum Technology

Summary of the Company’s Expansion Plans∙ Current: 90 units held
∙ Increase by 40 units to 130 units by 2013Helium container manufactured
by Taiyo Nippon Sanso

Objectives of Expansion∙ Put in place a stable supply system for Japanand overseas∙ Address the doubling of production volumes
at the U.S. plant in 2014

May 11, 2012

Activities in the U.S.
Industrial Gas for Shale Gas & OilBusiness Trends
Dramatic increase in demand for industrial gas in the U.S. owing mainly to the rapid
development and mining of shale gas and oil
Industrial Gas Demand∙ Fracturing, mining ⇒ nitrogen, oxygen∙ Pumping⇒ nitrogen∙ Refining⇒ nitrogen, hydrogen★Over 100 pipeline projects★Over 10 large-scale refining plants
MTG Business Summary∙ Sales team established∙ Over 30 existing user orders∙ Air separation plant under construction in North Dakota

May 11, 201216

Activities in the U.S.
➢Forecast Industrial Gas Sales for Shale Gas & Oil

Industrial Gas Market

Millions of dollars

550
500
450
400
350
300
250
200
150100
2009

2010

2011

2012

2013

2014

2015

2016

May 11, 2012

Consolidated Full-Term Forecasts
for FY2013

May 11, 201217

Consolidated Full-Term Forecasts for FY2013(Billions of yen)

FY2012FY2013(Results)(Forecast)

Sales477.4

486.0

Operating
Income31.0

32.8

OrdinaryIncome29.7

Net Income

21.2

6.5％

6.2％

4.4％

6.7％

30.2
6.2％

17.4
3.6％

Change% change

8.5

1.8％

1.7

5.6％

0.5

1.6％

-3.8

-17.9％

May 11, 2012

Industrial Gases Business Segment Forecasts for FY2013(Billions of yen)

Sales
400

Operating Income
291.0+16.1 (+5.5%)

40

300

91.9
200
100

307.1

50

199.1

107.4
+15.5 (+16.9%)

199.6

30

21.7

27.3+5.6 (+25.7%)

20+0.5 (+0.3%)

100
FY2012
JapanFY2013 (forecast)

0FY2012FY2013 (forecast)

Overseas* The graph contains figures for both Japan and overseas sales.

May 11, 201218

Electronics Business Segment Forecasts for FY2013
Sales

Operating Income(Billions of yen)

20150

115.2

31.1

100

5084.1107.0-8.2 (-7.2%)

1528.0-3.1 (-10.1%)

1079.0-5.1 (-6.0%)

55.9
1.7 -4.2 (-71.3%)00
FY2012
JapanFY2012

FY2013 (forecast)

FY2013 (forecast)

Overseas

May 11, 2012

Energy Business Segment Forecasts for FY2013
Sales
40

Operating Income

38.8

38.0-0.8 (-2.3%)(Billions of yen)

4330

1.9
202

101

1.6+0.3 (+13.9%)00
FY2012FY2013 (forecast)

FY2012FY2013 (forecast)

May 11, 201219Other Businesses Segment Forecasts for FY2013
Sales
4030

Operating Income

32.2

1.620

30.6

33.9+1.7 (+5.2%)(Billions of yen)101.7+0.1 (+10.9%)

532.1

2.7+1.5 (+5.1%)

3.1 +0.4 (+13.8%)

1000
FY2012
JapanFY2013 (forecast)

FY2012FY2013 (forecast)

Overseas

May 11, 2012

Disclaimer● This material is not intended for purposes of disclosure forsecurities transactions, and it is impossible to guarantee thatthe information contained in this presentation is accurate andcomplete.
● This presentation and report contain forward-looking
statements (estimates and forecasts) regarding the future plans,strategies, activities and performance of Taiyo Nippon Sanso
Corporation. Forward-looking statements reflect management’s
assumptions and beliefs based on information available as of
the time of writing. Risks and uncertainties include, but are notlimited to, changes in general economic and specific marketconditions, currency exchange rate fluctuations, tax systems,and regulations.

● Actual results may thus differ substantially from the said
forward-looking statements, and investment decisions should
not be made solely on the basis of the information provided
herein.

May 11, 201220