Q1 FYE2025
Consolidated Financial Results
Earnings Announcement( Fiscal year ended March, 2025 )July 30, 2024
Tokyo, Japan

Important Notice
For the purpose of this notice, “presentation” means this document, any oral presentation, any question and answer session and any written or oral material discussed or distributed by
NIPPON SANSO Holdings Corporation (“NSHD”) regarding this presentation. This presentation (including any oral briefing and any question-and-answer in connection with it) is notintended to, and does not constitute, represent or form part of any offer, invitation or solicitation of any offer to purchase, otherwise acquire, subscribe for, exchange, sell or otherwise
dispose of, any securities or the solicitation of any vote or approval in any jurisdiction. No shares or other securities are being offered to the public by means of this presentation. This
presentation is being given (together with any further information which may be provided to the recipient) on the condition that it is for use by the recipient) on the condition that it is for use
be the recipient for information purposes only (and not for the evaluation of any investment, acquisition, disposal or any other transaction). Any failure to comply with these restriction may
constitute a violation of applicable securities laws. The companies in which NSHD directly and indirectly owns investments are separate entities. In this presentation, “NSHD” is sometimes
used for convenience where references are made to NSHD and its subsidiaries in general. Likewise, the words “the Company”, “we”, ”us” and “our” are also used to refer to subsidiaries ingeneral or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies.
● Forward-Looking Statements
This presentation and any materials distributed in connection with this presentation may contain forward-looking statements, beliefs or opinions regarding NSHD’s future business, future
position and results of operations, including estimates, forecasts, targets and plans for NSHD. Without limitation, forward-looking statements often include words such as “targets”, “plans”,“believes”, “hopes”, “continues”, “expects”, “aims”, “intends”, “ensures”, “will”, “may”, “should”, “would”, “could”, “anticipates”, “estimates”, “projects” or similar expressions or the negative
thereof. These forward-looking statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from thoseexpressed or implied by the forward-looking statements: the economic circumstances surrounding NSHD’s global business, including general economic conditions here and abroad;competitive pressures and developments; changes to applicable laws and regulations; the success of or failure of product development programs; decisions of regulatory authorities and thetiming thereof; fluctuations in interest and currency exchanges rates; claims or concerns regarding the safety or efficacy of marketed products or product candidates; the impact of healthcrises, like the novel COVID-19 pandemic, on NSHD and its customers and suppliers, including foreign governments in countries in which NSHD operates, or on other facets of its business;
the timing and impact of PMI (post-merger integration) efforts with acquired companies; the ability to divest assets that are not core to NSHD’s operations and the timing of any suchdivestment(s); and other factors identified in NSHD’s most recent annual Consolidated Financial Statements on Japanese Securities relevant acts and exchange commission, available on
NSHD’s website. NSHD dose not undertake to update any of the forward-looking statements contained in this presentation or any other forward-looking statements it may make, except as
required by law or stock exchange rule. Past performance is not an indicator of future results and the results or statements of NSHD in this presentation may not be indicative of, and are notan estimate, forecast, guarantee or projection of NSHD’s future results.
● Certain Non-IFRS Financial Measures
This presentation and materials distributed in connection with this presentation include certain financial measures not presented in accordance with International Financial ReportingStandards (“IFRS”), such as Core Operating Income, Debt, Net Debt, Adjusted net D/E ratio, Free Cash Flow and ROCE after Tax. NSHD’s management and executive officers evaluates
results and makes operating and investment decisions using both IFRS and non-IFRS measures included in this presentation. These non-IFRS measures exclude certain income, cost andcash flow items which are included in, or are calculated differently from, the most closely comparable measures presented in accordance with IFRS. By including these non-IFRS measures,
management and executive officers intends to provide investors with additional information to further analyze NSHD’s performance, core results and underlying trends. NSHD’s non-IFRS
measures are not prepared in accordance with IFRS and such non-IFRS measures should be considered a supplement to, and not a substitute for, measures prepared in accordance with
IFRS. Investors are encouraged to review the reconciliation of non-IFRS financial measures to their most directly comparable IFRS measure, which are on the part of our slide deck.
● Financial information
NSHD’s financial statements are prepared in accordance with international Financial Reporting Standards (“IFRS”).

2

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

Notes● Analysis of Operating Results (Reasons for change in Revenue and Segment Operating Income)In the supplementary materials to the financial statements of NSHD, starting from the fiscal year ending March 31, 2022, NSHD will describe the status of the business results of NSHD
group on a quarterly consolidated accounting period basis, as well as its recognition and analysis of the status of the business results of NSHD group from management's perspective.
Please note that Segment Operating Income is based on Core Operating Income.

● The following table shows Revenue, Operating income, and the effect of Forex rate changes on Revenue and Operating Income.
The impact of Forex rate fluctuation is calculated by applying the average rate for the period under review to the period under review (the current period and the previous period).
These disclosures are not in accordance with International Financial Reporting Standards (IFRS). However, we believe that these disclosures are useful analytical information for investors
to understand the business conditions of the Group.
＜Forex rates＞

Average Forex rates
FYE2024

FYE2025

Assumption

Unit：¥ bn.

（Reference）
Currency sensitivity
as rough indication
Impact of devaluation by 1 JPY(Full-term basis)（Apr.-Mar.）

Currency

Revenue

FYE2025
Full-term

Unit：JPY

Q1

1st Half

9M

Full-term

Q1

1st Half

9M

Full-term

Currency（Apr.-Jun.）（Apr.-Sep.）（Apr.-Dec.）（Apr.-Mar.）（Apr.-Jun.）（Apr.-Sep.）（Apr.-Dec.）（Apr.-Mar.）

Core Operating Income(Announced on May 13, 2024)

USD

139.63142.61143.78145.31158.24145.31

USD

+2.4

+0.35

EUR

151.89154.81

156.24

157.72170.08157.72

EUR

+1.9

+0.35

SGD

103.66105.79106.90108.03116.65108.03

AUD

91.94

93.44

94.47

95.32

104.66

95.32

CNY

19.67

19.87

20.01

20.20

21.76

20.20

● Presentation of overall business performance and segment performance
The amounts shown are after offsetting and elimination of inter-segment transactions and do not include consumption tax etc.
Notes that from Q3 FYE2023, the reportable segment names simplified, but the scope of segment aggregation didn’t change.

3

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

Contents

1.

Strategic overview

2.

Q1 FYE2025 Business performance

3.

FYE2025 Full-term Forecast

Appendix

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July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

1. Strategic overview

5

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

1. Strategic overview

Key Highlights

Continue productivity improvements and price management
Seize opportunities to expand business continually

Initiatives with greater emphasis on diversity
Strong commitment to improving corporate value
Respond promptly to customer and social trends

6

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

1. Strategic overview

NS Vision 2026 | Enabling the Future
Our Medium-term Management plan (MTP)

Group Philosophy

Proactive. Innovative. Collaborative.
Making life better through gas technology.
The Gas Professionals
Group Vision

We aim to create social value
through innovative gas solutions
that increase industrial productivity,
enhance human well-being
and contribute to a more sustainable future.

7

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

1. Strategic overview

Diversified and experienced Board of Directors
New Internal Director effective June 2024.
Board of Directors consists of Nine experienced members with diverse backgrounds.
Independent Directors*1

Internal Directors

Expertise and experienceof each director
Corporate Management
Financial Affairs,
Accounting
Legal Affairs,
Risk Management

Toshihiko Hamada

Kenji Nagata

Miri Hara

Katsumi Nagasawa

Masako Miyatake

Representative Director,
President CEO
Member of ACoAR*2

Director
Representative Director, President of
Taiyo Nippon Sanso Corporation

Outside Director
Member of ACoAR *2

Outside Director
Chairman of ACoAR *2

Outside Director
Member of ACoAR *2

Sales, Marketing
Development, Technology
Production, Procurement

Overseas Assignment
Business Experiencein Other Companies
Independence

Thomas Scott Kallman

Raoul Giudici (new)

Hideo Nakaijima

Katsuhito Yamaji

Director
Chairman and CEO of
Matheson Tri-Gas, Inc

Director
Chairman and President of
Nippon Gases Euro-Holding S.L.U.

Outside Director
Member of ACoAR *2

Outside Director
Member of ACoAR *2*1 As defined by Tokyo Stock Exchange listing rules*2 Note that ACoAR (Advisory Committee on Appointments and Remuneration) is an organization that advises the Board of Directors. The Board of Directors strives to ensure transparency and objectivity indecision-making by consulting the Committee and seeking advice from the independent outside directors when revising bylaws concerning director remuneration, selecting candidates for the
positions of director or auditor, appointing and dismissing the president (CEO), appointing and dismissing executive officers and choosing successors to the president (CEO).

8

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

1. Strategic overview

Link and align Directors’ remuneration and Key Business Goals
In June 2024, remuneration system for Directors was revised to achieve
Financial & Non-financial Targets and improve NSHD’s corporate value.

➢ New KPIs’ criteria for NSHD Directors’ bonuses
KPIs for Performance-linked bonuses
・ Budget achievement

Add a new KPI "ROCE after Tax" in Performance-linked bonuses

・ Performance growth⇒ Continuously work to improve capital efficiency+ Efficiency improvement: ROCE after Tax

Add a new GHG related KPI in Non-financial KPI-linked bonuses

KPIs for Non-financial KPI-linked bonuses⇒ Strengthen incentives for achieving Non-financial targets

・ Progress on lost-time injury rate

Adopting “Growth of contribution to customers’ GHG emission reduction”
as KPI, aiming to accelerate contribution continuously

Reflect variable bonuses to the remunerations of Directors that are
responsible for each region*1⇒ Clarifying the commitment on NSHD Group’s Financial / Non-financial targets
and collaborations between businesses

・ Compliance training attendance rate
+ Growth of contribution to customers’ GHG emission reduction➢ Breakdown of Directors’ Remuneration*2■Base monthly remuneration■Performance-linked remuneration■Non-financial KPI-linked remuneration

Director*3

53

40

7

Directors that are responsible for each region*1 *4*1 Kenji Nagata (Taiyo Nippon Sanso), Thomas Scott Kallman (Matheson Tri-Gas), and Raoul Giudici (Nippon Gases Euro-Holding)*2,3 Excluding Independent directors*3 Breakdown of Directors’ Remuneration until June 2024 is roughly [Base monthly remuneration : Performance-linked bonuses : Non-financial KPI-linked bonuses] = [50:40:10]*4 Only GHG related KPI is applied to Non-financial KPI-linked bonuses for Directors whose main duties are as officers of subsidiaries

9

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

82

15
New

3

1. Strategic overview

Expanding business areas in Australia
Acquisition of northern and western LPG business

Supagas Pty Ltd, the business subsidiary company in Australia, has signed an agreement to acquire the LPG sales businessin Australia. In addition to current core business areas of eastern and southern Australia, Supagas will expand its sales
footprints to northern and western areas*1 *2. Synergies will be realized not only with LPG business but also with its existing
industrial gas business to achieve sustainable boost in profitability.

Business area to be acquired*2
Signed an agreement to acquire the Kleenheat’s
LPG sale business in WA and NT*1 from WesCEF*3.
The business has strong LPG sales channels and asolid position especially in WA.

Developing solid business foundation in easternand southern Australia to supply LPG andindustrial gas.

Business locations to be acquired*2
Existing business locations of Supagas*1 Western Australia (WA), Northern Territory (NT)*2 Subject to the approval by the Australian Competition and Consumer Commission (ACCC)*3 Wesfarmers Chemicals, Energy and Fertilisers

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July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

1. Strategic overview

Key CAPEX for our sustainable growth
Significant investment opportunities; diversified capital portfolio; aligned with our NS Vision 2026.
2% 1%“Others" include projects which are notassignable because the facilities relate to a wide
range of customers and no one specific market（e.g.）･ New or expanded production basefor Bulk business･ Shipping container for liquefied helium

23%

37%

FYE2025(as of the end of Q1)

2%

Approx. 50% is related toEnvironmental &Hydrogen society contribution“Environmental & Hydrogen society contribution
related” includes projects that contribute to our groupand the customers'190
efforts to become carbon neutrality.
By Industry（e.g.） ・Modernizing
our plants tostate-of-the-art equipment
・Hydrogen production related（HyCO Plant, and Green hydrogen JV）
Industrial

35%

Steel & Metals
Electronics
Chemicals & Energy

Automobiles & Other transportation
Healthcare
Others

Note that the above is an aggregation of investments that have been approved by the Board of Directors of each our group company, but have not yet been placed in service.
The size of each project is over approx. ¥500mn., $4mn. or €4mn.

11

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

2. Q1 FYE2025
Business performance

12

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

2. Q1 FYE2025 Business performance

Consolidated results（Unit: ￥ bn.）

FYE2025

Q1

Q1(Apr. - Jun.)(Apr. - Jun.)

YoY
Difference％ Change％ Changeexc. FX

Revenue

308.9

329.2

+20.3

+6.6%

-1.1%

Core operating income

40.7

48.3

+7.6

+18.7%

+8.8%

13.2%

14.7%

Non-recurring profit and loss

-0.0

-0.3

-0.3

Operating income（IFRS）

40.7

47.9

+7.2

13.2%
22.0%

14.6%
23.6%

Finance costs

-4.4

-5.0

-0.6

Income before income taxes
Income tax expenses

36.2

42.9

+6.7

10.6

13.2

+2.6

Net income

25.5

29.6

+4.1

Core OI margin

OI margin
EBITDA margin(Attribution of net income)Net income attributable to owners of the parent

NI margin
Net income attributable to non-controlling interests

13

FYE2024+17.8%+18.4%+16.1%

Revenue Analysis
YoY% Change
Revenue Growth

+6.6%

FX

+7.8%

Price

+2.7%

Pass-through & Surcharge-0.6%

Volume / Mix-1.7%

Divest. / Decons. & Others-1.6%

・ Price Management status: Solid・ Pass-thru ＆ Surcharge: Flat
・ Volume / Mix: Soft・ Decons.: Two factors in Japan(Please see the details in Japan segment)

24.5

29.0

8.0%

8.8%

0.9

0.5

Forex （Unit: JPY）

USD

139.63158.24(average rate during the period)

EUR

151.89170.08AUD

91.94

104.66

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

+4.5
-0.4

+18.4%

2. Q1 FYE2025 Business performanceJapan

By Industry
Cumulative period basis

10%
22%

YoY
（Unit: ￥ bn.）

FYE2024

FYE2025

Q1

Q1(Apr. - Jun.)(Apr. - Jun.)

Steel & Metals% Change
Difference% Change

4%

Automobiles & Other
transportationexc. FXElectronics
Food & Beverage
Healthcare

31%

Chemicals & Energy

Revenue

107.6

100.9

-6.7

-6.2%

-6.4%

Segment income

11.2

11.5

+0.3

+2.9%

+2.5%

10.4%

11.5%

Segment OI margin

22%

Others9%2%

By Product
Cumulative period basis

EBITDA margin

14.9%

15.9%

YoY Factors for increase/decrease in this quarterly period and other comment
・ Slightly lower shipment volumes of core products such as packaged and onsite of air separation gases
and those of carbon dioxide gas were flat
・ Effective price management
・ Shipment volume in electronic material gases was soft・ In equipment and installation, revenue increased both in Industrial Gases and Electronics-related
・ Decrease in revenue due to conversion from on-site production facility to a joint operation entity (June 30, 2023 onward)
・ Decrease in revenue due to the deconsolidation of an LP gas subsidiary (January 1, 2024 onward)

14

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

42%

Gases
Equipment andinstallation, other58%

2. Q1 FYE2025 Business performance

United States

By Industry
Cumulative period basis

8%
9%

YoY
FYE2024（Unit: ￥ bn.）

Q1

Q1

(Apr. - Jun.)(Apr. - Jun.)

Steel & Metals% Change

FYE2025
Difference% Changeexc. FX

Automobiles & Other
transportation

43%

Electronics
Food & Beverage
Healthcare

13%

Chemicals & Energy

Revenue

82.0

92.6

+10.6

+12.9%-0.4%

Others8%

Segment income
Segment OI margin

11.1

14.8

13.6%

16.0%

+3.7

+32.3%

13%+16.4%

By Product
Cumulative period basis

EBITDA margin

26.3%

28.2%

YoY Factors for increase/decrease in this quarterly period and other comment

25%

・ Higher shipment volumes of core products such as air separation gases
・ Effective price management and productivity initiatives

Gases

・ In equipment and installation, sales conditions both in Industrial Gas and Electronics-relate were soft

Equipment andinstallation, other・ Negative volumes in non air separation gases (such as electronics, acetylene, package, hardgoods and helium)

75%

15

6%

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

2. Q1 FYE2025 Business performance

EuropeBy Industry
Cumulative period basis

15%

YoY
（Unit: ￥ bn.）

FYE2024

FYE2025

Q1

Q1(Apr. - Jun.)(Apr. - Jun.)% Change
Difference% Change

31%

Steel & Metals

Automobiles & Other
transportationexc. FXElectronics
Food & Beverage
Healthcare
Chemicals & Energy

Revenue

73.1

85.0

+11.9

+16.3%+3.8%

Others12%

21%

Segment income
Segment OI margin

13.1

16.6

18.0%

19.6%

+3.5

+26.6%+12.8%
By Product
Cumulative period basis

EBITDA margin

30.5%

31.7%

11%

YoY Factors for increase/decrease in this quarterly period and other comment
・ Higher shipment volumes of core products such as air separation gases
・ Effective price management and productivity initiatives

Gases

・ Equipment and installation, revenue was strong

Equipment andinstallation, other

89%

16

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

1%
3%

17%

2. Q1 FYE2025 Business performance

Asia & Oceania

By Industry
Cumulative period basis

2% 4%
22%

YoY
（Unit: ￥ bn.）

FYE2024

FYE2025

Q1

Q1(Apr. - Jun.)(Apr. - Jun.)

Steel & Metals% Change
Difference% Change

Automobiles & Other
transportationexc. FXElectronics
Food & Beverage
Healthcare
Chemicals & Energy

Revenue

38.4

42.4

+4.0

+10.3%-0.5%

Segment income

4.1

4.3

+0.2

+4.8%

-5.7%

10.7%

10.2%

Segment OI margin

28%

Others

4% 2%

By Product
Cumulative period basis

EBITDA margin

17.0%

16.9%

12%

YoY Factors for increase/decrease in this quarterly period and other comment
・ Higher shipment volumes of core products such as air separation gases
・ In LP gas, of which a large portion of sales is in the Australia region, unit sales prices and sales volumes increased

Gases

・ Shipment volumes of electronic material gases in East Asia were soft

Equipment andinstallation, other

88%

17

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results38%

2. Q1 FYE2025 Business performance

Thermos

By Region
Cumulative period basis

13%

YoY
（Unit: ￥ bn.）

Revenue

FYE2024

FYE2025

Q1

Q1(Apr. - Jun.)(Apr. - Jun.)

7.5% Change
Difference

8.2% Changeexc. FX

Japan
Asia

+0.7

+9.0%

+7.9%
87%

Segment income

1.4

1.2

Segment OI margin

18.8%

15.0%

EBITDA margin

23.7%

20.1%

-0.2

-13.0%YoY Factors for increase/decrease in this quarterly period and other comment
・ Revenue from portable vacuum-insulated bottles was firm in Japan・ Overseas revenue from Korean sales companies and Asian production plants was favorable, but sales conditions
at equity-method affiliates were soft・ Higher marketing costs and production costs caused by the weak JPY

18

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results-16.3%

3. FYE2025 Full-term Forecast

19

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

3. FYE2025 Full-term Forecast

Consolidated forecast
FYE2025

Full-term

Full-term forecast

Difference％ Change(Announced on May 13, 2024)（Unit: ￥ bn.）

1,255.0

1,300.0

+45.0

+3.6%

165.9

177.0

+11.1

+6.6%

13.2%

13.6%

Non-recurring profit and loss

6.0

0.0

-6.0

Operating income（IFRS）

172.0

177.0

+5.0

OI margin

13.7%

13.6%

EBITDA margin

22.2%

22.4%

Finance costs

-21.3

-23.0

-1.7

Income before income taxes
Income tax expenses

150.7

154.0

+3.3

41.3

46.0

+4.7

Net income

109.3

108.0

-1.3

-1.2%

(Attribution of net income)Net income attributable to owners of the parent

105.9

105.0

-0.9

-0.9%

8.4%

8.1%

3.4

3.0

RevenueCore operating income
Core OI margin

NI margin
Net income attributable to non-controlling interests

20

YoY

FYE2024Forex （Unit: JPY）

USD

145.31145.31(average rate during the period)

EUR

157.72

157.72

AUD

95.32

95.32

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

-0.4

+2.9%

+2.2%

21

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

Q&A Session

President CEO

Senior Executive Officer
and CFO

Toshihiko Hamada
Alan Draper

Executive Officer,
Group Corporate Planning
OfficeSenior Executive Officer,
Group Sustainability
Management Office,and CSO

Koichiro Kubo

（Chief Sustainability Officer）

Takeshi Miki

22

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

General Manager,
Investor relations,Group Finance &Accounting Office

General Manager,
Accounting,Group Finance &Accounting Office

Keita Kajiyama

Takashi YoshidaAppendix

23

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

NIPPON SANSO Holdings Group Summary

https://www.nipponsanso-hd.co.jp/en/ir/

Corporate Philosophy

Corporate Information（As of March 31, 2024）

Company Name

Nippon Sanso Holdings Corporation

Founded

October 30, 1910

Headquarters

1-3-26 Koyama Shinagawa-ku, Tokyo 142-0062, JapanTEL

81-3-5788-8500

Group Philosophy
Proactive. Innovative. Collaborative.
Making life better through gas technology.

President CEO
Representative

Toshihiko Hamada

Common stock

37.3 billion yen

Stock information（As of March 31, 2024）

We aim to create social value through innovative gas solutions that increase industrial productivity,

Number of sharesenhance human well-being and contribute to a more sustainable future.

433,092,837

Number of shareholders

14,449Listed stock exchanges

Main Core businessTokyo Stock Exchange Prime Market

TickerIndustrial Gas business4091.T

Distribution by share holders (%)

Japanese Indivisuals and others

Mitsubishi Chemical Group 50.6

0%Group Vision

10%

20%

Foreign Institutions and Individuals

30%

40%

Other Japanese Corporations

50%

Thermos business

9.3

19.6

60%

70%

80%

90%

Japanese Financial Institutions

5.0

Electronics business

100%

15.5

Revenue / Employee personnel by Segment （As of Match 31, 2024）
2%

7%
0.5%

13%
33%

30%

22%

¥1,255.0bn.
24%

19,533
people

16%
28%
Japan

24

US

EuropeFYE2025 Financial Forecast（IFRS)

Asia & Oceania

Thermos

24%
Corporate

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

Revenue¥1,300.0 bn.

Operating income¥177.0 bn.

Net income attributable toowners of the parent

EPS¥105.0 bn.
¥242.57

Our Medium-term management plan Summary

https://www.nipponsanso-hd.co.jp/en/ir/management/plan.html

Capital allocation

Overview
Plan NameNS Vision 2026

Cash-in

SloganEnabling the Future［Operating Cash flow]\730.0 bn.

Period4 years from April 2022 to March 2026

Cash-out\433.0 bn.

Released date

May 11, 2022

［Investment as a whole]

Financial target（Final fiscal year in the plan: FYE2026）

Composition ratio by Business

Revenue\975.0-1,000.0 bn.

Core Operating Income
EBITDA margin\125.0-135.0 bn.
Group:

24%
0%

10%

≥24 %

Japan, the U.S., EU, A&O, Thermos: ≥17-33%
Adjusted net D/E ratio(the total for 4 years)

27%
20%

30%

Japan

US

40%

Europe

10%

20%

30%

Base/Underlying

Non-Financial target

Focused fields＜Environment＞
Reduction rate of GHG emissions

FYE2026:

18 %(Base year: FYE2019)

FYE2031:

32 %GHG reduced emissions through environmental product offer
FYE2026:Lower GHG emissions through environmental product offerings and applications＞NSHD Group GHG emission＜Safety Management＞
FYE2026:≤1.6

FYE2026:100 %FYE2026:≥22 %＜Compliance＞＜HR＞

Rate of female management posts

25

70%

80%

90%

100%

Strategic (beyond regions)

37%

45%
0%

（Note）Forex rate (Assumption) : USD \115 EUR \125Rate of female employees

60%

Thermos

9%

Composition ratio by Initiative≥6 %Rate of receiving compliance training

50%

Asia & Oceania

2%≤0.7 times

ROCE after Tax

Lost Time Injury Rate

14%

24%

FYE2031:25 %FYE2026:≥18 %FYE2031:

22 %July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

40%

50%

Growth initiatives

60%

12%
70%

Strategic initiatives

80%

M&A

90%

6%
100%

Non-recurring items
Non-recurring items are costs of structural reform (cost for withdrawal or downsizing business operations and special retirement allowances),
losses caused by disasters or serious accidents, and other gains and expenses (such as disposal of idling assets).
Core operating income is calculated as operating income excluding certain gains and expenses attributable to non-recurring items in the Company.
FYE2024
Q1

FYE2025
Q1

YoY
Difference（Unit: ￥ bn.）

Core operating income

40.7

48.3

+7.6

Non-recurring profit and loss

-0.0

-0.3

-0.3

Operating income（IFRS）

40.7

47.9

+7.2

Items（Unit：￥ bn.）
FYE2024 Q1 result
Item

26

FYE2025 Q1 result
AmountItem

AmountLoss associated with withdrawal from business-0.0 Loss associated with liquidation of business (Asia & Oceania)

-0.3

Total

-0.0 Total-0.3

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

Key performance indicators
Item

Unit

FYE2025
Q1

FYE2024
Full-term

JPY

56.74

67.19

244.66

Overseas sales ratio

％

63.6

67.9

65.5

ROE

％

ー

ー

12.9

ROCE

％

ー

ー

9.4

ROCE after Tax

％

ー

ー

6.7

JPY

ー

ー

44

％

ー

ー

18.0

CAPEX(fund basis) & Investments and loans

\bn.

25.1

46.7

120.8

Depreciation and amortization

\bn.

27.1

29.4

112.4

Free cash flow

\bn.

8.6

-12.0

91.3

Adjusted net D/E ratio

Times

0.77

0.73

0.74

Interest-bearing liabilities

\bn.

965.6

981.6

936.9

Net interest-bearing liabilities

\bn.

843.2

860.0

810.8

Basic earnings per share

Annual dividends per share
Dividend payout ratio

27

FYE2024
Q1

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results(Reference) Preconditions, Definition & Calculations of our KPIs
Glossary

Preconditions and Definitions in this Presentation

Core operating income

Core operating income is calculated as operating income excluding certain gains and expenses attributable to non-recurring factors (non-recurring items*).
*Non-recurring items are costs of structural reform (cost for withdrawal or downsizing business operations and special retirement allowances), losses causedby disasters or serious accidents, and other gains and expenses (such as disposal of idling assets).

Interest-bearing debt

Bonds and borrowings as presented in the statement of financial position, plus lease liabilities included in other financial liabilities.
*Includes Hybrid finance.

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.
This kind of financing does not cause stock dilution, and a certain ratio of the funds procured in this way can be recognized as equity credit by rating
agencies provided that certain conditions are met.

Equity-type debt

The amount of debt procured by hybrid finance that has been recognize as equity credit by rating agencies.
In this fund procurement, rating agencies have recognized equity credit for 50% of the procured amount.

Indicator

Calculations used in this presentation

EBITDA margin（Core operating income＋Depreciation and amortization）／Revenue

ROE

Profit attributable to ownwers of parent／Total equity attributablle to ownwers of parent*

ROCE

Core operating income／（Interest-bearing debt＋Total equity attributablle to ownwers of parent）* [Capital employed]

ROCE after Tax

Core operating income after Tax（+Dividend received）［NOPAT] ((Core operating－Investment income/loss from Equity in earnings (losses) of affiliatedcompanies included in Core operating income)×(1－effective tax rate)＋Investment income/loss from Equity in earnings (losses) of affiliated companies
included in Core operating income＋Dividend received))／（Interest-bearing debt＋Total equity attributablle to ownwers of parent）* [Capital employed]

Adjusted net D/E ratio((Interest-bearing debt – equity-type debt) – cash and cash equivalents)／(equity attributable to owners of the parent + equity-type debt)** The average of the amounts at the end of the comparative fiscal years of the previous and current fiscal years is used.

28

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

Condensed consolidated statements of Cash flows
FYE2024

FYE2025

Q1

Q1（Unit：￥ bn.）

Difference% Change

Income before income taxes
Depreciation and amortization
Changes in working capital
Others

36.2
27.1
-8.4
-21.3

42.9
29.4
-2.2
-35.9

+6.7
+2.3
+6.2
-14.6

+18.4%Cash flows from operating activities

33.6

34.1

+0.5

+1.6%

Capital expenditures
Investments and loans
Others (asset sales, etc.)

-25.0
0.0
0.1

-46.7
0.0
0.5

-21.7
-0.0
+0.4

Cash flows from investing activities

-24.9

-46.2

-21.3

+85.0%

8.6

-12.0

-20.6

ー

-24.9

1.5

+26.4

ー

Impact of exchange rate changes

7.4

5.9

-1.5

Transfer to assets possessed for a sales purpose

-0.9

ー

+0.9

Balance of cash and cash equivalents
at end of quarter

122.4

121.5

-0.9

Free cash flow
Cash flows from financing activities

29

YoY

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results-0.7%

Condensed consolidated statements of Financial position（Unit：￥ bn.）

FYE2024

FYE2025

YoY

Q4

Q1

Difference

FYE2025

YoY

Q4

Q1

Difference

Trade payables

136.0

132.5

-3.5

Interest-bearing liabilities

936.9

981.6

+44.7

Others

390.0

386.8

-3.2

1,462.9

1,501.0+38.1

Share capital and capital surplus, etc

703.8

722.3

+18.5

Other components of equity

210.6

276.6

+66.0

owners of parent

914.4

999.0

+84.6

Non-controlling interests

31.6

32.2

+0.6

+113.4

Total equity

946.1

1,031.2+85.1+123.3

Total liabilities and equity

2,409.0

2,532.3+123.3

Cash and cash equivalents

126.1

121.5

-4.6

Trade receivables

282.1

283.6

+1.5

Inventories

100.4

104.8

+4.4

Others

59.4

68.0

+8.6

568.2

578.0

+9.8

Property, plant and equipment

877.4

936.4

+59.0

Goodwill

575.8

609.8

+34.0

Equity attributable to

Intangible assets

252.3

262.9

+10.6

Others

135.3

144.9

+9.6

Total non-current assets

1,840.8

1,954.2

Total assets

2,409.0

2,532.3

Total current assets

FYE2024

Total liabilities

Note that foreign exchange rates resulted in an increase in both total assets and total liabilities and equity of approximately ¥113.0 billion. This mainly reflected foreign exchange rate changes,
such as the JPY depreciation of ¥9.66 against the USD and the JPY depreciation of ¥9.09 against the EUR as of June 30, 2024, compared with the rates as of March 31, 2024.

30

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

Results overview by Segment
FYE2025

FYE2024（Unit: ￥ bn.）

United States

EuropeAsia & Oceania

Segment OI margin

10.4%

11.5%

Revenue
Segment OI

82.0
11.1

92.6
14.8

Segment OI margin

13.6%

16.0%

Revenue
Segment OI

73.1
13.1

85.0
16.6

Segment OI margin

18.0%

19.6%

Revenue
Segment OI

38.4
4.1

42.4
4.3

Segment OI margin

10.7%

10.2%

7.5
1.4

8.2
1.2

18.8%

15.0%

0.0
-0.3

0.0
-0.2

Core OI

308.9
40.7

329.2
48.3

Core OI margin

13.2%

14.7%

Segment OI

Revenue
Segment OI

Revenue

Consolidated total

31(Apr.- Jun.)

Segment OI

Segment OI margin

Adjustment(Apr.- Jun.)

Composition
ratio

100.9
11.5

Revenue

Thermos

Q1

107.6
11.2

RevenueJapan

Q1

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

YoY

30.6%
23.9%

28.1%
30.6%

25.8%
34.4%

12.9%
8.9%

2.6%
2.6%

0.0%
-0.4%

100.0%
100.0%

Difference% Changeexc. FX% Change

Forex impact

-6.7
+0.3

-6.2%
+2.9%

+0.1
+0.0

-6.4%
+2.5%

+10.6
+3.7

+12.9%+32.3%

+10.9
+1.5

-0.4%
+16.4%+11.9+3.5+16.3%+26.6%

+8.7
+1.6

+3.8%
+12.8%+4.0+0.2+10.3%
+4.8%

+4.1
+0.4

-0.5%
-5.7%

+0.7
-0.2

+9.0%
-13.0%

+0.0

+7.9%

+0.0

-16.3%

+0.0
+0.1

―
―

+20.3
+7.6

+6.6%
+18.7%

―
―
+24.1
+3.6

-1.1%
+8.8%

Revenue composition
By Segment

By Industry

2%

10%

13%

5%
30%

31%

26%

Q1
FYE2025

Q1
FYE2025¥329.2bn.

¥321.0bn.

17%(exc. Thermos business)

9%
20%
28%

Japan

U.S.

EuropeAsia & Oceania

9%

Thermos

Steel & Metals

Healthcare

Automobiles & Other transportation

Chemicals & Energy

Electronics

OthersFood & Beverage

32

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

Business performance over the past five years（¥ bn.）

Revenue（¥ bn.）

Operating income（IFRS）

Profit attributableto owners of the parent（¥ bn.）

OI margin

1,186.6

1,255.0

11.0%

10.9%

10.6%

10.1%

13.7%

850.2

8.4%

NI margin

957.1
818.2

6.3%

6.7%

6.7%

6.2%

172.0

2020.32021.32022.32023.3

Net interest-bearing debts

2024.3（¥ bn.）

93.9

88.8

101.1

2020.32021.32022.3

105.9

119.5

2023.32024.3（¥ bn.）

Capital expenditures

Hybrid Finance (HBF)

53.3

55.2

64.1

73.0

2020.32021.32022.32023.3

Depreciation
and amortization

2024.3（¥ bn.）CAPEX % Sales

Net debt excluding HBF

8.6%

1.45

Adjusted net D/E ratio*

1.15

0.94

0.81

7.8%

7.7%

9.4%
118.3

0.74

91.8
72.8

648.3

608.1

585.5

559.5

250.0

250.0

250.0

250.0

150.0

2020.32021.32022.32023.32024.3

60.0

83.7

86.3

2020.32021.3

105.7

112.4

2023.32024.3

92.4

74.4

660.8

*Adjusted Net D/E Ratio: an indicator of safety (financial soundness) calculated in consideration of this partdue to 50% of the amount raised by HBF is permitted as “Equity" by rating agencies.

33

7.3%

2020.32021.3*It’s recorded on a cash basis.

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

2022.32023.32024.32022.3Glossary: EBITDA margin／ROCE after Tax
EBITDA marginand EBITDA

EBITDA（Earnings Before Interest Taxes Depreciation and Amortization）

EBITDA
marginIndicator that shows profitability based on Cash Flow, excluding theimpact of M&A and CAPEX.

20.5%

This indicator should not be considered in isolation from performanceindicators such as operating income and net income, which are indicators
based on IFRS, and should not be viewed as substitutes for these
indicators. This indicator should be given due consideration whencomparing them with similarly named financial indicators presented byother companies.

ROCE after Tax（Return On Capital Employed after Tax ）=NOPAT(Net Operating Profit After Tax)

21.2%

174.1

173.6

2020.32021.3（￥ bn.）

20.4%

195.1

2022.3

19.3%

228.8

2023.3

22.2%
278.4

2024.3（Reference）

ROCE after Tax
and NOPAT（￥ bn.）（￥ bn.）ROCE and Core OI
ROCE

ROCE after Tax（Interest-bearing debt + Total equity attributable to owners of parent）*

6.7%* The average of the amounts at the end of the comparative fiscal year s of the previous and current fiscal years is used.

Indicator based on profitability and investment efficiency
This indicator should not be considered in isolation from performanceindicators such as operating income and net income, which are indicators
based on IFRS, and should not be viewed as substitutes for these
indicators. This indicator should be given due consideration whencomparing them with similarly named financial indicators presented byother companies.

34

4.6%

4.4%

4.8%

62.8

2020.32021.3

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

6.1%

6.8%

7.6%

9.4%

5.4%
165.9
117.2

64.6

6.4%

73.0

87.4

2022.32023.32024.3

90.3

87.2

2020.32021.3102.7

2022.3123.1

2023.32024.3

Industrial gas supply systems
Air Separation Gases

Other Gases

Air Separation Unit

On-siteAir

Major supply destination（Sector）

Storage tank for liquid gases
Petrochemical

Steel
Oxygen Nitrogen
N2
O2

RefineryWe’ve established production plants in the vicinity of the customer.
A form of direct connection and constant supply of pipes.

（Large-scale supply）

Supply via pipeline

Refining by-product gas from chemical factories and gas transported overseas

Oxygen
O2

Bulk
CO2

Major supply destination（Sector）

NitrogenN2

Tank truck
Argon
Ar

Automobile

Shipbuilding

Construction
machinery

Pharmaceutical
MedicalManufacturing
Glass/Paper
Food/
beverage

LCP

Photovoltaics

Semiconductor

H2

He

Tank truck

We’ve installed a storage tank for liquefied gas in the customer's
premises. A form of supply according to the method of use of gas.

Supply via Liquid gases form

（Medium-scale supply）

Supply via Liquid gases form

Packaged
Filling station

Major supply destination（Sector）

Filling station
Flatbed truck

Advanced
medicine

HomecareEngineeringdevelopment

R&D

Sanitation

Flatbed truck

Construction/
Installation

We deliver filling containers (cylinders) to customers.
A form of supply according to the method of use of gas.

Supply via Cylinder
35（Small-scale supply）

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

Supply via Cylinder

LP
Gas

36

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

For further information, please contact:
Public Relations for media

Investor Relations for investors

Public Relations

Investor Relations

Tel：+81 (0)3-5788-8513
E-mail：Nshd.info@nipponsanso-hd.co.jp

Tel: +81 (0)3-5788-8512
E-mail：Nshd.ir@nipponsanso-hd.co.jp

Upcoming IR events
Q2 FYE2025 Earnings Call

October 31, 2024

www.nipponsanso-hd.co.jp/en/
NIPPON SANSO Holdings Corporation (Ticker:4091.T)
Headquarters：1-3-26 Koyama Shinagawa-ku, Tokyo 142-0062, Japan

37

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 resultsImportant Notice– Trading of Nippon Sanso Holdings Corporation Common Stock,
Disclaimer Regarding Unsponsored American Depository Receipts
Nippon Sanso Holdings Corporation ("NSHD”) encourages anyone interested in buying or selling its common stock to do so on the Tokyo Stock Exchange, which is where its common stock
is listed and primarily trades. NSHD’s disclosures are not intended to facilitate trades in, and should not be relied on for decisions to trade, unsponsored American Depository Receipts(“ADRs”).
NSHD has not and does not participate in, support, encourage, or otherwise consent to the creation of any unsponsored ADR programs or the issuance or trading of any ADRs issued
thereunder in respect of its common stock. NSHD does not represent to any ADR holder, bank or depositary institution, nor should any such person or entity form the belief, that (i) NSHD
has any reporting obligations within the meaning of the U.S. Securities Exchange Act of 1934 (“Exchange Act”) or (ii) NSHD’s website will contain on an ongoing basis all informationnecessary for NSHD to maintain an exemption from registering its common stock under the Exchange Act pursuant to Rule 12g3-2(b) thereunder.

To the maximum extent permitted by applicable law, NSHD and its affiliates disclaim any responsibility or liability to ADR holders, banks, depositary institutions, or any other entities orindividuals in connection with any unsponsored ADRs representing its common stock.

38

July 30, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q1 results

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