Supplementary Materials for Consolidated Business Performance for the First Half of FYE2020 October 31, 2019 TAIYO NIPPON SANSO Corporation
1 . Business Performance for First Half of FYE2020 1) Overview of business performance 2) Business performance by segment 2 . Full-Year Forecasts for FYE2020 1) Overview of forecasts for the full-year 2) Forecasts by segment for the full-year
3 . Reference Materials
1) Breakdown for revenue disclosure categories for each segment 2) Statement of non-recurring profit and loss 3) Condensed Consolidated Statements of Cash Flows 4) Condensed Consolidated Statements of Financial Position 5)  Key performance indicators 6) Sales mix by business 7) TNSC’s Gas Supply Structure 2
(€→¥): FYE2020 Q2 rate: €1=¥120.91 o In FYE2019 Q2, European business acquisition-related expenses (advisory fees, etc.) of ¥1.3 billion had been recorded. 3

【Revenue】

4

Reasons for changes in revenue
• Bulk & On-site (Air separation gases): Revenue decreased primarily in the key industries of steel, non-ferrous metals and metal processing. • Gas-related and plant, other (Medical): Contribution from acquisition of IMI Co., Ltd., a medical equipment sales company
Reason for change in segment income
• Higher costs due to rising fuel prices • Bulk & On-site (Air separation gases): Lower earnings from decreased revenue • Contribution from acquisition of IMI Co., Ltd, a medical equipment sales company • Expenses: Higher costs due to personnel expenses, etc. 5

Reasons for changes in revenue
• Bulk: Favorable shipments centered around air separation gases • On-site: Start of operation of new projects, contribution from acquisition of HyCO business
Reason for change in segment income
•    Industrial gas-related business was generally favorable, centered on air separation gases. • Contribution from acquisition of HyCO business 6
o The European business acquired from Praxair, Inc. of the United States in December 2018 has been disclosed in this segment. o The revenue increased 2.9% year on year from ¥82.8 billion as compared to the business performance of the Gas Business in Europe from April 1, 2018 to June 30, 2018, assuming the acquisition date of the European business acquired from U.S. company Praxair, Inc. was April 1, 2018. 7

Reasons for changes in revenue
• Bulk (Air separation gases): Revenue in Asia decreased slightly. ・LP gas: Firm sales in Australia • Specialty gases: Lower shipments of electronic materials gases • Electronics-related equipment and installation: Revenue in Taiwan rose substantially.
Reason for change in segment income
• Profitability improved in the LP gas business in Australia. • Earnings declined due to lower electronic materials gas revenue. 8
*Impact of foreign currency translation: Negative impacts of ¥0.14 billion on revenue and ¥0.05 billion on segment income
Reasons for changes in revenue
• Japan: Sales of vacuum insulated portable mugs were solid, while sales of sports-use vacuum bottles declined. • Overseas: Shipment volume of overseas distributors decreased.
Reason for change in segment income
• Japan: Earnings decreased due to lower revenue from sports-use vacuum bottles. • Overseas: Group companies accounted for by the equity method posted soft sales.
o In FYE2020, the Company plans to record non-recurring profit of ¥7.0 billion on the sale of its assets as part of efforts to improve asset efficiency.

【Revenue】

【Operating income】

*2 In FYE2019 resulted, European business acquisition-related expenses (advisory fees, etc.) of ¥2.7 billion had been recorded in core operating income. (Reference Materials)
【Non-recurring Income and Expense Items】
o Net interest-bearing liabilities: interest-bearing liabilities - cash and cash equivalents o Adjusted net D/E ratio: (Net interest-bearing debt – equity-type debt*!) / (equity attributable to owners of parent + equity-type debt*!) *1 Equity-type debt: the amount of debt procured by Hybrid finance² that has been recognized as equity credit by rating agencies (50% of the procured amount). *2 Hybrid finance: A form of debt financing that has features resembling equity, such as voluntary deferral of interest, extremely long-term redemption periods and subordination during liquidation or bankruptcy procedures.
and lease liabilities simultaneously increased by ¥34.6 billion on the day starting the application of IFRS 16.
(purchase of investment securities, purchase of shares of subsidiaries, and payments for acquisition of businesses).
●These materials are not intended for purposes of disclosure for securities transactions, and it is impossible to guarantee that the information contained in this presentation is accurate and complete. ● 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. Actual results reflect a variety of risk and uncertainties. These risks and uncertainties include, but are not limited to, changes in general economic and specific market conditions, currency exchange rate fluctuations, tax systems, and regulations. ● Accordingly, actual results may differ from forecasts issued at this time. With this in mind, please refrain from relying solely on these materials when making investment decisions.