NIPPON SANSO Holdings Corporation
1H Financial Results Briefing for the Fiscal Year Ending March 2021 Telephone Conference
October 30, 2020

Presentation
Umehara: We will start NIPPON SANSO Holdings Corporation’s first half Financial Results Briefing for the Fiscal
Year Ending March 2021 Telephone Conference. My name is Umehara, General Manager at the Investor
Relations Department of NIPPON SANSO Holdings. Nice to meet you. We'll move on to the briefing as soon as
possible. Today's explanation will proceed in accordance with the consolidated results supplementarymaterials posted on our website. If you have a copy at hand, please refer to that material.
Looking first at the business environment, COVID-19 is spreading even more in many countries compared to
the last time we talked in July. Against this backdrop, there hasn’t been any major disruption to the Group's
production and supply of industrial gases so far. However, as I mentioned last time, the spread of COVID-19
has had an impact on our Group by way of economic stagnation in the markets in which we operate and a
decline in production activities.
I understand that some of you have already seen the figures but, that said, we feel that the impact has been
lessened in the second quarter compared to the first quarter.

I will explain the financial overview on page three.
Revenue was JPY384.5 billion, down JPY38.3 billion, or 9.1%, YoY. The effect of exchange rates is JPY2.4 billion
YoY. Excluding this effect, revenue would have decreased by JPY35.9 billion. With regard to the impact of
exchange rates, there was the impact of the yen's appreciation against the US dollar and the Australian dollar:
about JPY2.1 billion in US dollars and JPY130 million in Australian dollars. Regarding the euro, the depreciationof the yen had a positive impact of JPY500 million.

Next, the core operating income was JPY36.7 billion, down JPY8.7 billion, or 19.2%, YoY. The impact of foreign
currency translation here was a negative JPY200 million, and excluding this impact, there would be a decreaseof JPY8.5 billion.
Non-recurring items accounted for less than minus JPY100 million in the second quarter of the fiscal year
under review. Therefore, operating income including this non-recurring profit and loss was JPY36.6 billion,
down JPY10.1 billion, or 21.6%, YoY.
Financial gain/loss was negative JPY5.8 billion, a decrease of JPY100 million YoY.
Quarterly net income attributable to owners of the parent was JPY21 billion, down JPY6.7 billion from theprevious fiscal year. Net income declined by 24.3%, a substantial decrease in both overall sales and profits.

Next, I will explain the status of each segment. First of all, regarding the Gas Business in Japan, please refer topage five of the material.
Revenue was JPY157.1 billion, down JPY16.9 billion, or 9.7%, YoY.
Factors behind the change: Revenue from packaged gas was down by JPY900 million, while that from bulk
was down by JPY3.5 billion. Demand in the domestic manufacturing industry was generally weak in areas suchas steel, non-ferrous metals, transportation equipment, metalworking, and chemicals, although there weresigns of recovery. Demand declined in oxygen, nitrogen, argon, and carbon dioxide.
On-Site revenue was down JPY 4.9 billion, as demand for steel, specialty steel, non-ferrous metals, chemicals,
and other products declined.
LP Gas revenue decreased by JPY2.9 billion. Revenue declined due to a decline in sales prices linked to importprices, as well as a decline in sales volumes.

In Specialty Gases, operating income increased by JPY200 million. Demand for memory and CMOS sensors
was solid, but demand related to applications such as electronics, large LCDs, and solar panels was weak.
In Gas-Related equipment and Plants, revenue decreased by JPY4.8 billion, partly due to the absence of largescale projects recorded in the previous fiscal year. In the Electronics-Related Business, construction for
semiconductors was solid, and sales of MOCVD equipment were also high. Accordingly, revenue increased by
JPY1.8 billion. In the Welding and Cutting-Related Business, overall market conditions were weak, resulting ina decrease in revenue of JPY1.9 billion.
Segment income declined JPY900 million, or 6.8%, from the previous fiscal year, to JPY11.4 billion.
Factors contributing to the change included lower electricity and fuel-adjustment costs, which resulted in an
increase of JPY300 million compared with the previous fiscal year. However, despite the impact of pricerevisions on packaged and bulk products, a significant drop in demand in the domestic manufacturing industry
and an increase in production costs resulted in a negative JPY1 billion decrease in profit.
In Carbon Dioxide Gases, sales to restaurants declined, but profitability of dry ice improved, so income wasflat YoY.
On-Site profit was down JPY600 million, reflecting lower sales to steel mills following the previous fiscal year
and lower sales to special steel manufacturers.
In LP Gas, income declined due to lower demand and falling import prices, but profits were flat, at the samelevel as the previous fiscal year.
In Specialty Gases, demand for memory applications showed solid performance. Meanwhile, demand for LCDs,
solar power systems, and electronics-related products was declining, resulting in an increase of only JPY100
million in profit.
In the Gas-Related equipment and Plant Business, although there was some special demand related to healthcare, profits decreased by JPY300 million due to the absence of earnings from a large-scale plant for industrial
gases posted in the previous fiscal year. Profit from Electronics-Related Equipment and Construction increasedby JPY400 million. In the Welding and Cutting-Related Business, profit decreased by JPY300 million due to thedecrease in revenue.
Some one-time revenue is also posted in this second quarter, which, together with the decrease in expenses,
resulted in an increase in profit by about JPY500 million.
That’s all about the business in Japan.

Next, I would like to talk about the Gas Business in the U.S. on page six.
The revenue of the Gas Business in the U.S. was JPY91.2 billion, down by JPY7.7 billion, or 7.8%, YoY. The
impact of foreign exchange rates was a negative JPY2.1 billion and, excluding this impact, there will be adecrease in revenue of JPY5.6 billion.
The revenue by product in consolidated results supplementary materials includes the impact of foreignexchange rates. I will give you the amounts of increase or decrease YoY by product excluding the impact offoreign exchange rates.
Packaged Gas was down JPY2.6 billion, Bulk was down JPY600 million, On-Site was down JPY800 million, LP
Gas was down JPY100 million, Specialty Gases were flat; in Equipment and Installation, Electronics-Related
sales were up JPY800 million, and Welding and Cutting-Related sales were down JPY2.3 billion.
In Packaged Gas, demand for automobile transportation equipment and metal processing declined sharply
following the first quarter.
The breakdown of the JPY600 million decline in bulk: negative JPY1.6 billion for air separation gases, negative
JPY700 million for carbon dioxide gas and dry ice, but both gases are on a recovery trend from the first to
second quarter. Helium was affected by the price revision, resulting in a positive JPY900 million. For othergases including hydrogen, revenue increased by JPY800 million.
On-Site revenue was down JPY800 million from the previous fiscal year level, due to a general decline indemand for gases, including separation and HyCO (note: on-site supplying of hydrogen and carbon monoxide).
Specialty Gases for electronics remained flat YoY. Revenue from equipment and installation for electronics
increased by JPY700 million.

Welding and Cutting-Related revenue fell sharply by JPY2.3 billion due to a decrease in Automobile andConstruction-Related demand.
Next is Segment income, which was JPY9.6 billion, down JPY2.1 billion, or 18%, YoY. The impact of foreignexchange rates was negative JPY200 million and, excluding the impact of these changes, there will be anegative JPY1.9 billion decrease.
Regarding the breakdown of the previous fiscal year comparisons, first of all, JPY1.3 billion was recorded as a
one-time income in the second quarter of last year, so its absence has had an impact.
Looking at the breakdown of bulk and packaging, although demand is recovering through the second quarter,
the economic slowdown caused by COVID-19 in the first quarter has had a major impact. As a result, profits
from Separate Gas declined by JPY600 million, from Packaging-Related Products including hard goods, by
JPY900 million, and from carbon dioxide by JPY100 million. Meanwhile, helium prices have been revised,resulting in an increase of JPY400 million. On-Site: Profit decreased by JPY200 million. Equipment-Related
Business saw a decrease of JPY100 million in electronics applications.
We are also carrying out strong cost-cutting measures, which had a positive impact of JPY400 million onrevenue. In addition, there were one-time items in the current fiscal year, and one-off profits of about JPY600
million have been posted.

Next, I would like to explain the performance of our business in Europe. Please see page seven.
The Gas Business in Europe has been affected by the spread of COVID-19 from an early stage, particularly in
Spain and Italy, which are also the central markets for our European Gas Business. In the European business,revenue was JPY74.8 billion, down by JPY10.4 billion, or 12.3%, YoY. The impact of foreign exchange rates wasa positive JPY500 million and, excluding this impact, there was a negative JPY9.9 billion decrease in revenue.

Revenue by product in the consolidated results supplementary materials includes the impact of the exchange
rate, so I will share the changes YoY for each product excluding the impact of the exchange rate.
Packaged Gas: down by JPY3.3 billion; Bulk: down by JPY4.5 billion; On-Site: down by JPY2.1 billion; Specialty
Gases: down by JPY200 million. Equipment and Installation: down by JPY600 million for Gas-Related
equipment and JPY200 million for Welding and Cutting-Related products.
Included in the Packaged Gas category is the Refrigerant Business in Italy, which is affected by sluggish
demand for transition to next-generation CFC alternatives.
In Bulk Gas, overall demand declined, broken down into JPY2.3 billion for separating gas, negative JPY1.6
billion for carbon dioxide, and negative JPY500 million for helium.
Nevertheless, as in the US, there are signs of a recovery from the first to the second quarter.
We are also seeing recovery in the second quarter for On-Site Business, but it was negative JPY2.1 billion
mainly due to a decrease in steel-related demand. Specialty Gases were down by JPY200 million mainly due
to a decrease in demand for electronics for automotive applications. Plant and Gas-Related equipment was
negative JPY600 million. Welding and Cutting-Related products were negative JPY200 million.
Segment income was JPY8.6 billion, down by JPY4.6 billion YoY. It declined sharply by 34.6%. The impact offoreign exchange rates is positive JPY100 million, so there is a decrease of JPY4.7 billion excluding the impactof foreign exchange rates.
Although this includes the impact of electricity costs and the effects of price revisions, the major factor behindthe decline in profits was the decline in sales volume due to a decrease in demand in the industry as a whole
due to the spread of COVID-19.

I will move on to the Gas business in Asia and Oceania. Please see page eight.
The Gas Business in Asia and Oceania was also generally affected by COVID-19 in the first quarter, but theindustrial gas field is showing a recovery trend. Demand for electronics in eastern Asia has remained solid,
unaffected by COVID-19.
Revenue was JPY50.2 billion, down by JPY1.3 billion, or 2.6%, YoY. The impact of foreign exchange rates wasa negative JPY800 million, and excluding this impact, there will be a JPY500 million decrease in revenue.
Similarly, in the revenue by product in consolidated results supplementary materials, the impact of theexchange rate is also included, so I will share the changes YoY by product excluding the impact of the exchange
rate.
Packaged Gas was down by JPY100 million, and Bulk was down by JPY1.4 billion. On-Site is down by JPY100
million. LP Gas was down by JPY200 million. Specialty Gas: up by JPY2.4 billion. Negative JPY1 billion for GasRelated equipment and Plants and others. Electronic Equipment and Construction increased by JPY100 million.
Welding and Cutting-Related revenue was down by JPY200 million.
Breakdown of Bulk down by JPY1.4 billion: for Separate Gas, demand declined in Thailand, the Philippines,
Australia, Vietnam, and other countries, resulting in a JPY1.2 billion decrease in revenue. Carbon dioxide wasalso down by JPY100 million. Helium was flat, helped by a recovery trend in sales in India.
Revenue from LP Gas decreased by JPY200 million, mainly due to a decline in CP prices in Australia, which isreflected to the sales price.
Demand for Specialty Gases is rising in response to solid performance in the semiconductor market.

By region, revenue increased by JPY2 billion in China and JPY300 million in Singapore. Revenue in Taiwan also
increased by JPY600 million. Revenue in South Korea decreased by JPY300 million. Other revenues were down
JPY200 million.
In Gas-Related equipment and Plants, revenue decreased by JPY1 billion, due in part to sluggish business forfire protection equipment in Singapore, Malaysia, and Leeden NOX, while spot-construction projects wereconducted in South Korea.
In Electronics-Related Equipment and Installation, revenue increased by JPY100 million, with construction
work in Taiwan based on the percentage-of-completion method. In Welding and Cutting, construction activity
in Singapore was suspended due to the impact of COVID-19 resulting in a negative JPY200 million.
Next, segment income was JPY5.6 billion, up by JPY300 million, or 5.5%, YoY. The impact of foreign exchange
rates was a negative JPY100 million, so when the impact is excluded, income increased by JPY400 million.
Looking at the contents in each country, in Leeden NOX and Singapore, there was a decrease of JPY200 million
in profit due to the decrease in revenue. Profit was down JPY200 million in the Philippines and JPY100 million
in Thailand. Industrial Gases in Vietnam, India, and China have remained almost unchanged. For Supagas inAustralia, profit was up by JPY200 million. Despite the impact of the decline in the purchase price of LP Gas,
it has maintained its contribution to profits.
In the Electronics-Related Business, sales of Specialty Gases were on a recovery trend, increasing by JPY700
million. This item also includes equipment and installation work.

Next, I will talk about the Thermos Business on page nine. Revenue was JPY11 billion, down by JPY2 billion, or
15.4%, YoY. There was virtually no impact from foreign exchange rates.

In Japan, revenue decreased by JPY1.8 billion. Due to COVID-19, our mainstay products, sports bottles, andportable mugs have lost demand for Japanese Golden Week, and inbound demand for overseas souvenirs has
also evaporated. On the other hand, demand for frying pans, tumblers, and other products used in households
has been increasing and, in this category, performance has remained robust.
Overseas, in addition to changes in the sales environment due to the issue of Japan–Korea relations, thespread of COVID-19 also coincided, and production plants in Malaysia and the Philippines were shut down
due to lockdowns. Although it is recovering, we are also affected by this.
Shipments by Group companies in Japan, Europe, North America, China, and Asian markets were also weak,
resulting in a decrease in revenue of JPY200 million.
Segment income was JPY2.1 billion, a decrease of JPY2 billion, or 48.9%, compared with the previous fiscal
year. There is virtually no impact from foreign exchange rates.
In Japan, the decrease in revenue resulted in a negative JPY600 million decrease in profit. Overseas, including
production adjustments at factories, posted a decrease of JPY400 million.
Equity in earnings of affiliates accounted for by the equity method decreased by JPY1 billion.
That’s all about the Results for the first half of the Fiscal Year Ending March 2021.

Finally, I would like to explain the full-year forecasts for the fiscal year ending March 2021. First, please referto page 10 for our full-year forecast of consolidated results.
Regarding our understanding of the environment, while the situation varies from country to country,
economic activities are being resumed. On the other hand, COVID-19 is continuing to spread in countries
around the world, and we do not have any visibility into when this crisis will be resolved.

Against this backdrop, we have not changed our outlook from the full-year outlook announced in the
consolidated summary released on May 12. Revenue is JPY830 billion, a decrease of JPY20.2 billion, or 2.4%,
YoY.
Exchange rates are calculated at JPY108 to the US dollar and JPY120 to the euro.
Core operating income is JPY82 billion, down by JPY8.3 billion, or 9.2%, YoY. As in last time, nonrecurring profit
and loss is not planned to be recorded in this second half.
Operating income is JPY82 billion, a decrease of JPY11.9 billion, or 12.7%, YoY.

The operating income forecasts for each segment are shown on the next page, 11, and are unchanged fromthose disclosed on July 30.
By business segment, for the Gas Business in Japan, revenue is JPY356 billion and core operating income is
JPY31.2 billion. Revenue in the Gas Business in the U.S. is JPY192 billion, while operating income is JPY16.3
billion. In the Gas Business in Europe, revenue and core operating income are JPY153 billion and JPY19.8 billion,
respectively. For the Gas Business in Asia and Oceania, revenue is JPY103 billion, and core operating income
is JPY10.3 billion. In the Thermos Business, revenue and core operating income are set at JPY26 billion and
JPY6.3 billion, respectively. Corporate elimination is negative JPY1.9 billion, and the total core operating
income is JPY82 billion.
There are no changes to the KPIs based on the current earnings forecasts from the previously announced data
as of May 12. I’d like to close my presentation.

Question & Answer

Moderator: Mr. Umehara, thank you very much. Now, we would like to move on to the question-and-answer
session, but before we start, I have two requests. We would like to answer your questions one at a time, so
we appreciate your cooperation.
Also, when you are asking your question, please tell us your name and the company you work at.
Enomoto (Bank of America Merrill Lynch Japan Securities Co., Ltd.): I'm Enomoto.
Umehara: Hello, nice to meet you.
Enomoto: Nice to meet you. I have three questions. First, you have not changed the Company's plan this time,
but I assume there are different views of strength and weakness by segment, so can you share the situation
for segment against the plan?
Also if possible, I think you had assumed in the initial plan that Industrial Gases will be almost flat YoY fromthe second half onward, but what is the outcome compared to that?
Umehara: Okay. In terms of the progress we have made against the previous forecasts, while you might beaware as we already have figures up to the second quarter, but the forecast for the Gas Business in Japan
seem to be somewhat high. On the other hand, we recognize that the US forecast is slightly low given ourcurrent performance. For other regions, the outcome has been largely within the range of expectations.
However, when considering what will happen in the future, how the current situation of COVID-19 affects the
economy is difficult to forecast, whether it is good or bad. Therefore, we have not made any changes to ourtargets this time.
Enomoto: As for the Industrial Gases and hard goods in the initial forecast, you had said that the forecast isflat from the third quarter, but that’s not actually the case, right?
Umehara: That's right. Looking at actual results, we have not yet reached the situation where we expect
recovery from the third quarter, and there are some areas that have turned out different from theenvironment we originally envisaged. I have been persistently saying this in the presentation, but there isn’tmuch visibility into how the situation will gradually recover, in relation to the initial plan.
Enomoto: My second question concerns the Gas Business in the U.S. . A considerable rebound has been
apparent in the second quarter. Excluding probably one-time events, I think that YoY profits may be positive.
I’d like to confirm if that understanding is correct, and why the recovery has been so strong, and rival
manufacturers have announced price increases. Please tell us about the price situation.
Umehara: Regarding the US, although there are certainly temporary factors, the figures are turning out to bevery good. There are various factors behind this, and as you mentioned that our competitors are announcing
price revisions, we have not released any releases but are taking action to revise prices in a manner that
follows them, in the US.
Additionally, for example, the global wholesale sales of helium have been increasing. As for bulk, the recovery
after bottoming out from the impact of COVID-19 is faster than in other areas as a result.

However, it is quite difficult to expect what will happen going forward, and there is no particular fact that wehave not changed our business performance because we recognize that something will suddenly deteriorate.
In that sense, your understanding is appropriate.
Enomoto: Lastly, I would like to know about the Gas Business in Europe. If possible, I would like to ask you to
explain how sales are growing in each market.
Umehara: As for revenue, Spain is the most vulnerable; Spain, Italy, and Germany. There has been about a 7%
to 8% decline in Spain. In Italy, it is also down about 7%. It’s down 9% in Germany. Benelux is about the samelevel as the previous year. Scandinavia was down by 8%.
What I have just mentioned is the YoY comparison between just the second quarters of July throughSeptember.
Enomoto: So I think Spain and Italy were originally down 20% in the first quarter, but even after hearing that
refrigerants were bad, business seems to be recovering considerably. Please tell us the contents of that.
Umehara: We are certainly seeing an impact on the Refrigerant Business in Italy, but there are, of course,
other businesses for general industrial gas, and we also have a strong focus on the business in the medical
field. As for negative impact, refrigerants are being impacted, but you can recognize that other areas areseeing a recovery in similar fashion.
Enomoto: How about Spain?
Umehara: We have a large On-Site Business in Spain, so I think the key point is how things will recover there.
But the trend had been falling for some time from late last year, and COVID-19 came on top of that, so thesituation has been sluggish. However, we are recently seeing signs of slight recovery. We can't tell what will
happen in the future, but performance in Spain may change a little bit on the situation.
Enomoto: I see. Thank you very much.
Moderator: Mr. Enomoto, thank you for your questions. Is there anyone else? Please.
Sakaguchi (Daiwa Securities Co. Ltd.) : Thanks. I have two questions. The first is about Specialty Gases in Asia.
I think the situation is very strong, but I would like to know whether there has been anything like inventory
accumulation in China, et cetera, and also about the outlook for the third quarter and beyond.
Umehara: Indeed, there were concerns about the buildup of inventories, but if we look at the flow, we are
not seeing any extreme movements. Such movements can happen due to various changes in the operating
environment, but our understanding at this point in time is that we are steadily growing with solid
performance.
Going forward, the situation can be affected in various ways including political issues, but our approach is toset strategies so that our users will keep using our gas no matter what happens, and we will make preparations
to this end.
Sakaguchi: By preparations to be used no matter what, do you mean that you will disperse production areas
so gas can be supplied regardless of local policies?
Umehara: Well, of course, unlike so-called general industrial gases, these products are made in plants and are
possible to be transported for exports and imports. So we will market our products while maintaining abalance of production and taking into account the nature of these products, and keeping a firm understandingof users and where what is produced, and working together to follow their trends as a supplier.

Sakaguchi: I see. Thank you very much. My second question is about price and energy. You mentioned earlier
that you finally revised prices in the US. I would like to hear about the state of price revisions in other regions,and whether energy costs have declined, especially since October.
Umehara: Yes. There was certainly such a move in the US. Since price revisions have been made for sometime, the effects of price revisions previously made in Europe are beginning to appear. With the increase involume, the effects of price revisions will increase, so I hope that we will be able to actualize this by capturing
demand where it increases quickly.
In addition, we have also revised prices in Japan last year, and the impact of this is still small and not very clear
yet due to the still small volume, but as the volume increases, this will be materialize into profit that we are
expecting. So I think it will depend on the volume.
In terms of costs, if the fuel adjustment costs of electricity decrease, our costs will also decrease. Looking at
trends in the areas of LNG, oil, and crude oil, we think that the domestic market is on a downward trend forthe past six months or so. So, although we don’t think the situation allows us to mention specific quantitative
figures, we are in a position to enjoy the benefits of that part.
With regard to other areas, the original unit price for electricity is not as high as that of Japan, so of course,
there is the benefit of lower electricity prices, but we recognize that it will not have as much impact as inJapan.
Sakaguchi: Thanks. In addition, if the price of electricity falls, is there any downward pressure on your prices?
Umehara: That's a matter of contracts, so while I do not think that all such contracts are unaffected by theincrease or decrease of electricity prices, I think it is a case-by-case matter.
Sakaguchi: I understood very well. Thank you very much.
Moderator: Mr. Sakaguchi, thank you for your questions. Now, let us move on to the next question. We would
appreciate your questions.
Kono (Nomura Securities Co., Ltd.) : This is Kono from Nomura Securities. Thank you very much.
Umehara: Thank you very much.
Kono: The second quarter's profits seem to have improved considerably. However, although revenue has not
returned to the level of the second quarter of the previous year, profits have returned to nearly the samelevel. I would like to ask about the changes in the core operating income by breaking down the factors.
I would like to hear about this in terms of changes from the first quarter to the second. Core operating income
was JPY14.1 billion in the first quarter and JPY22.7 billion in the second. I think it improved by about JPY8.6
billion. Could you break down the factors behind the recovery by sales volume, changes in product prices,
input costs, electricity, and other factors contributing to improvement in terms of costs?
Umehara: Yes. The situation is slightly different for each segment, so it is quite difficult to answer, but thedecrease in volume is making it difficult to generate profit as we continue to incur fixed costs of the plants.
The situation is different from country to country, so I can’t provide an answer right now on the relation
between the quantity and unit price. I am sorry.
Kono: I feel that while sales were pushed down by more than JPY10 billion compared to the previous year,
the return of operating income to almost the same level as the previous year is helped by the cost side. Is that
understanding correct, and how long it is going to last? There was another question on whether it will bereflected in product prices, but I would like to ask how much you will keep being helped by the cost side andwhether will it remain in the second half of the fiscal year.
Umehara: Well, in terms of costs, I think that the impact of the unit price of electricity is about to start showing
in Japan as well. On the other hand, with regard to price revisions, I think they will show as profits as we
increase the volume to some extent. In that sense, we are certainly raising prices in the US at present, and wehope to proceed in a good direction in terms of both sales and costs. Without volume, we will not be able toenjoy that profit.
Kono: Okay. Another question.
Umehara: I'm sorry. Regarding the domestic market, we are working on raising prices, revising prices, and thefuel adjustment cost is becoming lower, and we are also working to reduce costs. This is also the impact of
COVID-19, but expenses are also declining in some areas.
Another thing I mentioned about the On-Site Business is that domestic sales forthe steel were decreasing
significantly. Here, revenue is down significantly, but we have established joint ventures with steelmakers asfunction-sharing companies, and we do not take large profits from them in the first place, so in this sense, thenegative impact on profits has been somewhat eased in terms of domestic sales.
Kono: Understood. I would like to ask one more question. I understand that lock-downs are being enforced
again in Europe now, so is there a risk that activities will stop in user industries and factories like in April? I
think each government is aiming to pursue a direction in which both the measures for COVID-19 and economic
and production activities can continue. What are your thoughts on the risk of such a situation occurring in
April?
Umehara: Regarding that point, we don’t think the situation allows us to predict what is going to happen inthis context. In particular, Japan, Europe, the US, and Asia have different environments, and measures willchange accordingly, so we are steadily advancing our business while currently in a situation where we cannot
clearly state what is the right way going forward.
Kono: Okay. Thank you very much. This is all.
Moderator: Mr. Kono, thank you for your questions. Now, let us move on to the next question. Please.
Azuma (Jefferies Japan Limited) : This is Azuma from Jefferies.
Umehara: Hello. Thank you very much.
Azuma: Regarding Thermos, I guess the poor performance was unavoidable in the first half of the year, but is
it recovering when you look at it monthly?
Umehara: That's right. April and May were the bottom, and results were outstandingly good in June in areactionary way from up to April. After that, the situation has been settling down, but home demand has
increased, and it seems that the demand for leisure for outside activities remained slow this summer.
Azuma: I guess you mean that the recovery in June was due to pent-up demand, but how about from here
on? Should we assume that there will be no similar or very strong return from here if this kind of situation
continues?
Umehara: Well, since the environment is changing, popular products are changing as well, and we also thinkthat the rising sales of portable mugs and frying pans are due to rising brand recognition. Of course, there isalso the functional aspect of sports bottles.

In terms of how Thermos will grow in the future, we think one direction is to keep growing under the Thermos
brand. Of course, I do not think that sports bottles will not sell in the present situation, but I think that we are
increasingly being prepared to successfully respond in the new environment.
Azuma: Second, I think that Specialty Gases in Asia fared quite well. What are your thoughts on thesustainability of this performance from here on, including next year?
Umehara: Considering the waves and cycle of semiconductors, I think that we will have to follow or moveaccordingly with the trends.
Against this backdrop, the question of how semiconductor manufacturers will change in the future relates to
how much we will be able to work in line with their expectations in terms of specification, production, andsupply. Currently, it is difficult to predict the changes that are about to take place, but as mentioned earlier,
we are not facing any major negative factors right now, so we should keep thoroughly focused on capturing
the users.
Azuma: I see. Thank you very much.
Moderator: Mr. Azuma, thank you for your questions. We are sorry to inform you that since we are out oftime, we would like to stop accepting questions.
With this, we will close the first half Financial Results Briefing for the Fiscal Year Ending March 2021 Telephone
Conference. Thank you very much for participating and for asking many questions.
Umehara: Thank you very much.
[END]

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ReminderThe information contained here is not disclosure information for securities trading. The accuracy andcompleteness of this information are not guaranteed.
The briefing session and this material describe future plans and strategies, as well as forecasts and outlooksof business performance. These plans and strategies, as well as forecasts and outlooks, are made by Taiyo
Nippon Sanso based on its judgments and estimations made in accordance with the information available atpresent. Actual performance will be subject to changes caused by a variety of risks and uncertainties (such as
economic trends, market demand, exchange rates, taxation systems and various other systems andinstitutions, but not limited to them).
We wish to remind you, therefore, that the actual business performance may differ from the forecasts andoutlooks made at this time. Please refrain from making investment judgments based solely on this information.