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Jefferies 2014 Global Industrials Conference August 13, 2014

Taiyo Nippon Sanso Corporation

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Forward Looking Statements

IMPORTANT NOTICECAUTION REGARDING FORWARD LOOKING STATEMENTS

This presentation contains certain forward-looking statements. Forward-looking statements convey

TNSC's current expectations or forecasts of future events and use words and phrases such as

"anticipate,” "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project,"

"should," "will," "potential" and similar terms and phrases. All statements contained in this Presentation

other than statements of historical fact are forward-looking statements. These statements involve risk

and uncertainty because they relate to events and depend on circumstances that may occur in the

future and/or may be out of TNSC’s control. No representation is made that any of these statements

will come to pass or that any forecast result will be achieved. There are a number of factors that could

cause actual rebuffs and developments to differ materially from those expressed or implied by these

statements and forecasts. TNSC assumes no obligation to revise or update any forward-looking

statement.

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Taiyo Nippon Sanso Corporation (TNSC)

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One of the five global gas majors

Global sales > $5 billion

13,000 employees

Founded in 1910

Technology Development

Global network in 18 countries

5th largest industrial gas supplier in the worldLargest in Japan

Portfolio includes space simulation, superconductivity, hydrogen fueling, healthcare, semiconductor manufacturing, and, of course, air separation

6.4% 10-year CAGR

Nippon Sanso (est.1910) and Taiyo Toyo Sanso (est.1946) merged in 2004

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Industrial Gases: 62%

TNSC Business Overview

On-site gas supplyLiquefied gasesPackaged gasesCutting & welding equipment

Semiconductor material gasesHigh purity gasesMOCVD equipmentCylinder cabinets

Large-scale air separation unitsUltra-high-purity nitrogen gas generatorsSpace-simulation chambers Helium containers

Synthesized-air (pure air) supply systemsLiquid oxygen systems for home-based oxygen treatmentsWater-18O stable isotope

Electronics: 19%

Plants & Engineering: 2%

Medical Care: 4%

LPG: Eco-friendly clean energyAutomated gas stations for motor vehiclesMicro co-generatorsGHP (gas heat pumps)

LP Gas: 9%

Others: 4% (Housewares Business)

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TNSC Global Network

Sales by regional segment

Japan$3.7 billion

69%

US$1.2 billion

22%

Asia$0.5 billion

9%

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Strong Presence in Asia Pacific Region

TNSC is pursuing an aggressive growth strategy outside of Japan with heavy emphasis in the Asia Pacific region.

India

Thailand

Vietnam

Singapore

Malaysia

Indonesia

Philippines

South Korea

China

Japan

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Q1 2015 Results

(Millions of JPY) Q1 FY15(June 2014)*1

Q1 FY14(June 2013) YoY YoY %

Net sales 132,310 123,130 +9,180 +7.5%

Operating income 8,483 7,373 +1,110 +15.1%

OI margin 6.4% 6.0% - -

Net income 5,436 4,492 +944 +21.0%

EBITDA 18,982 16,237 +2,744 +16.9%

*1 Q1 FY2015 is three months ended June 2014. However U.S., China and some Asian subsidiaries’ Q1 FY2015 is three months ended March 2014.*2 Exchange rate 2013: ¥92.46 = $1, 2014: ¥102.77 = $1

I. Sales Growth YoY +9,180 +7.5% IV. Sales Growth YoY by RegionII. Forex Impact*2 +4,071 +3.3% Japan +2.9%III. Sales Growth W/O II +5,108 +4.2% North America +5.9%

Japan +2,417 Asia +8.5%North America +1,572Asia +1,119

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Q1 2015 – by Regional Segments

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20

40

60

80

100

120

140

Q1FY14

Q1FY15

Other

Asia

United States

Japan

+2.6%

+17.7%

+14.4%

+11.5%

Sales to third parties

EBITDA Q1 YOY Growth

FY15 vs. FY14Japan +2.7%the US +26.5%Asia +25.1%Other +25.9%

JPY (Billions)

*1 Thermos Business and Other businesses

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Gas Business in JapanStrong Sales to the steel industryRecovery in demand for electronics gas

Gas Business in the USSales increased due to strong orders in Propane, new consolidation effects of Continental Carbonic Products, Inc., and favorable foreign exchange rate

Gas Business in AsiaStrong Sales of electronics gas and safety goods

OtherSales by Thermos is strong mainly in new products

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Corporate and Social Responsibility

Relations with suppliersValue partnerships and ensure fairness and impartiality in selecting suppliers; seek to expand opportunities for market entry.

Relations with customersFulfill our responsibility to customers, placing the highest priority on our pledge to guarantee safe, stable supply of product.

Relations with investorsEstablish solid relationships built on trust by ensuring the appropriate distribution of profits and maintaining open, robust communications.

Relations with employeesRespect human rights and strive to enhance working environments and ensure appropriate working conditions.

Relations with societyWork to ensure harmony with local communities and to contribute to regional prosperity.

We publish a report annually to inform people about the environmental preservation and social responsibility initiatives of

Taiyo Nippon Sanso and its Group companies.

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Long-Term Vision

ROCE 10% or above

Operating Margin 10%

Sales ¥1 trillion

Overseas Sales Ratio 50% or above

by the end of FY 2023

StrengthenBusiness

Base

ExpandOverseas Business

The New Mid-Term

Strategic Plan

The first stage in the achievement

of the long-term vision

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Mid-term Strategic Plan

The Four Core Strategic Policies

Ortus Stage 1April 2014 - March 2017

Structural Reforms Innovation Globalization Mergers &

Acquisitions

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Reduce 6-7 billion yen/year in fixed costs※※compared to the FY ended March 2014

Measures

Domestic businesses ⇒ streamline, optimizeOverseas businesses ⇒ selectively assign management resources

Create a global organization to support goal attainment Corporate Planning & Global Operations Division

Integrate Electronics divisions into Industrial GasesReorganize parent corporation and affiliated companiesStreamline indirect operations by promoting shared services Strengthen supply chains Improve gas engineering capabilities operationsAssign more personnel dedicated to overseas businesses

Mid-term Strategic PlanStructural Reforms

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Create new businesses that will be the core of the next generation.Accelerate the commercialization of new products into global markets.

Create new business synergy with Mitsubishi Chemical Holdings Group Overseas on-site business, and value added materials

Open innovationInvestment into venture companies, development and sale of high-value added products through M&A

Development of new energy businessesNatural gas liquefaction, hydrogen on-site business, shale gas related businesses

Commercialization of new strategic products into growth marketsHydrogen station, superconductive cooling system, water -18O, and new materials

Establish a new cross-border organization “Global Innovation Division”

Mid-term Strategic Plan

Innovation

Measures

* Water-18O plant, Chiba factory

* LNG Storagetank

* Mobile hydrogen station

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Strategically place management resources globally to increase overseas ratio from current 31% to 50% by FY 2023

Mid-term Strategic Plan

Globalization

17.4% 16.9%18.6%

22.3% 22.5% 22.7% 23.4% 24.2%27.4%

31.3%34.0%

40.0%

50.0%

0%

10%

20%

30%

40%

50%

60%

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200

400

600

800

1,000

1,200

FY05 FY07 FY09 FY11 FY13 FY15 FY23

AsiaNorth AmericaJapanOverseas sales ratio

Formation of Global Operations DivisionOptimization of overseas operations (China, India, Southeast Asia)Globalization of Group companies & Development of Onsite businessesDevelopment of global human resources (personnel shift, trainee system)Introduction of IFRS

FY17

Overseas RatioNet Sales

(billion yen)

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Western Europe

Eastern Europe

Africa

India and surrounding areas

Japan

East Asia

North America

Middle East

Oceania

Existing locations of Taiyo Nippon Sanso GroupSize of industrial gas market (2010) *Source: Gas GeoramaSize of industrial gas market (2022 estimate) *Company’s estimation

Southeast Asia South

America

Aggressively pursue acquisitions and ventures to accelerate business expansion globally.

Mid-term Strategic PlanMergers &

Acquisitions

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Investment Plan

Investment Plan (strategic breakout)

Investment Plan (regional breakout)

Ordinary investment ¥80 billion

M&A

Large capital expenditure, investment in rationalization ¥120 billion

Investment in venture businesses

Total ¥200 billion

Japan ¥58 billion

United States ¥77 billion

Asia and Others ¥65 billion

Total ¥200 billion

Examples of investment

Further construction at a manufacturing plant for oxygen stable isotope labeled water (water -18O)

New construction of air separation units in the U.S.

Make strategic investment of 200 billion yen in the next three years.

Mid-term Strategic Plan

Total new investment is 37.8% larger than that of previous three years

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Ortus Stage 1 – Financial Targets(Sales: billion yen) (Operating margin)

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Net Sales(billion yen) 468 523 550 570 600Operating Income(billion yen) 25 31 35 38 45

Operating Margin 5.3% 6.0% 6.5% 6.7% 7.5%

Overseas Sales Ratio 28% 31% 34% 36% 40%

CAPEX (billion yen) 36 71 47 36 116

Net debt (billion yen) 229 220 209 200 241

NET D/E Ratio 1.12 0.80 0.72 0.66 0.74

ROCE 5.5% 6.2% 6.4% 7.0% 8.0%

Mid-term Strategic Plan

Represents 16.0% CAGR in Operating Income 2013 - 2017

← Ortus Stage 1 →

Thank you!