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Taiyo Nippon Sanso Corporation

Jefferies 2013 Global Industrials Conference August 13, 2013

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Taiyo Nippon Sanso Corporation (TNSC)

One of the five global gas majors

Global sales > $5 billion

Over 11,000 employees

Founded in 1910

Technology Development

Global network in 17 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

5.5% 10-year CAGR

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

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TNSC Business Overview

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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

Industrial Gases: 63%

Electronics: 19%

Plants & Engineering: 2%

Medical Care: 4%

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

LP Gas: 8%

Others: 4% (Housewares Business)

TNSC Global Network

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Japan 69%

US22%

Asia9%

* Sales by regional segment

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Q1 2014 Results

(Millions of JPY) Q1 FY14(June 2013 *1)

Q1 FY13(June 2012) YoY YoY %

Net sales 123,130 112,378 +10,751 +9.6%

Operating income 7,373 6,194 +1,179 +19.0%

OI margin 6.0% 5.5% - -

Net income 4,492 3,059 +1,433 +46.8%

EBITDA 16,237 13,995 +2,242 +16.0%

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Sales Growth + 9.6% Excluding FX Impact - 5.0%Growth on Local Currency Basis + 4.6%

Japan + 0.1%US + 9.1%Asia +45.0%

*1 Q1 FY2014 is three months ended June 2013. However U.S., China and some Asian subsidiaries’ Q1 FY2014 is three months ended March 2013.

Q1 2014 – by Business Segment

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+10.7%

+10.4%

-5.6%

+16.6%

0

20

40

60

80

100

120

140

Q1FY12

Q1FY13

Q1FY14

Other

Energy

Electronics

IndustrialGas

Sales to third parties

EBITDA Q1 YOY Growth

FY14 vs. FY13Industrial Gas +5.2%Electronics +101.3%Energy -22.3%Other +11.6%

Billions of JPY

*2

*1

Industrial GasStrong sales in US & AsiaDecline in Japan due to low plant orders

ElectronicsSales increased in equipment in Japan and in semiconductor gases in US

EnergyPropane sales price declined based on Saudi Aramco Contract Price decrease

*1 Medical and Thermos Business *2 Japanese LP Gas Business

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Q1 2014 – by Regional Segment

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+0.1%

+27.3%

+67.7%

0

20

40

60

80

100

120

140

Q1FY12

Q1FY13

Q1FY14

Asia

US

Japan

Sales to third parties

EBITDA Q1 YOY Growth

FY14 vs. FY13Japan +7.4%US +40.3%Asia +48.7%

Billions of JPY Japan

Strong sales in Electronics equipment offset by decline in plant sales

USSales increased due to strong orders in Package Gas / Propane and favorable foreign exchange rate

AsiaSales increased due to the new consolidation and favorable foreign exchange rate

Regional Growth Initiatives

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JapanCreate ¥20 billion sales through newly developing products

US (MATHESON)Vertical Integration of Bulk and Distribution – M&AElectronics Strategic Customers and High-valued ProductsSpecialty Gases Network Expansion

AsiaProactive investments in existing business regions and further strengthen our market positionEntry into new countries through Leeden Limited

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Creation of New Business

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Hydrogen Filling StationJapanese government plans to build 100 hydrogen filling stations by 2015 for FCV

TNSC has achieved 50% cost reduction, the highest filling pressure of 70 MPa and a filling speed of 5 kg of hydrogen per 3 minutes

The FDG-PET examination method to grow worldwide for early diagnosis of cancer, and Alzheimer’s evaluationTNSC production capacity expansion

June 2013 October 2015300kg/year 600kg/year

Water-18O Stable Isotope

* Water-18O plant at Chiba factory

100kg/year

* Mobile hydrogen station

Asian Business Expansion Strategy

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Vietnam Japan Gas Co., Ltd.4 ASUs + New ASU to be completed in January 2015

Ingasco, Inc. 3 ASUs +New ASU to be completed in July 2014

Leeden LimitedExpansion to other countries through Leeden

Matheson K-Air India Pvt. Ltd.New ASU to be completed in December 2013

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Strategies and Major Initiatives

Quality System Drives Continuous Improvement

Safety System Drives Process & Procedure

Total Customer FocusProfitable Growth

Sale

s

Corp

ora

te

Fu

nct

ion

s

Op

era

tion

s

Sales System Drives New Business Growth

Vertical Integration of Bulk and Distribution – M&A

Electronics Strategic Customers and High-valued Products

Specialty Gases Network Expansion

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Vertical Integration of Bulk and Distribution – M&A

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Legend

MATHESON ASUs

Waverly - 2006

Vernon - 2006

San Antonio II – 2010

Grimes - 2010

Waxahachie - 2004 DeLisle - 2004

Westlake - 2004

Irwindale - 2004

Vacaville - 2004

San Antonio I -2004

Mesa - 2014

Lakeland - 2013

Dickinson - 2013

6 Legacy Matheson Tri-Gas ASUs

6 Acquired Air Liquide ASUs in 2004

2 ASUs in 2006

2 ASUs in 2010

2 ASUs in 2013

1 ASU in 2014

West Palm Beach

Stafford

Odessa

Albuquerque Irving

Pasadena

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Vertical Integration of Bulk and Distribution – M&A

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Other Acquired Companies

Quimby - 2011

Polar- 2007

Western Intl - 2010

A&F Welding - 2012

Evergreen Supply- 2012

US Airweld – 2012

Linweld – 2006

Aeris – 2008

Five Star – 2008

Valley National Gases – 2009

Specialty Gases Network Expansion

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Newark, CAJoliet, IL

LaPorte, TX

Morrow, GA

Gloucester, MA

Twinsburg, OH

New Johnsonville, TN

Joliet, ILNewark, CA

Rancho Cucamonga, CA Albuquerque, NM

Dallas, TX

Houston, TX

Miami, FL

Twinsburg, OHGreensburg, PA

Manassas, VA

South Portland, ME

Waverly, NE

New Brighton, MNPortland, OR

Legend

Hub Plants

World-class Specialty Gas facility

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Full Year FY2014 Outlook

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(Millions of JPY)FY14

Projection(March 2014)

FY13Actual

(March 2013)YoY YoY %

Net sales 514,000 468,387 +45,613 +9.7%Operating income 31,500 24,884 +6,616 +26.6%OI margin 6.1% 5.3% - -Net income (loss) 17,100 (2,071) +19,171 -

EBITDA 68,600 57,277 +11,323 +19.8%

Sales Growthw/o FX impact

+ 6.6%

Sales Growth with FX impact

+ 9.7 %

Sales by Region (excluding currency effect *)

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20.6% 19.9% 21.0%

24.9% 23.7% 24.2%25.8% 26.1%

29.6% 30.6%

50.0%

0%

10%

20%

30%

40%

50%

60%

0

2,000

4,000

6,000

FY05 FY08 FY11 FY14Japan US Asia Overseas sales ratio

Millions of USD

* Exchange Rate: USD 1 = JPY 100

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Thank you!