FYE2022 Full-term
Earnings Presentation（Fiscal year ended March 31, 2022）

May 20, 2022
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, EPS (Earnings per share), Debt, Net Debt, Adjusted net D/E ratio and Free Cash Flow. 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 and cash 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 inaccordance 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 ourslide deck.

● Financial information
NSHD’s financial statements are prepared in accordance with international Financial Reporting Standards (“IFRS”).

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May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

Notes● 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＞（Reference）
Currency sensitivity
as rough indication
Impact of devaluation by 1 JPY(Full-term basis)

Average Forex rates
FYE2021

FYE2022

FYE2023
Full-term

Unit：JPY

1Q

1st Half

9M

Full-term

1Q

1st Half

9M

Full-term

Assumption

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

USD

107.38106.32105.54105.94109.76110.10111.45113.04

115

USD

+2.0

+0.25

EUR

118.74121.66

122.61124.07132.44131.16130.96131.11

125

EUR

+1.6

+0.2

SGD

76.29

76.67

76.92

77.76

82.41

82.01

82.77

83.83

82.7

AUD

71.69

73.91

74.75

76.71

84.15

82.33

82.69

83.33

82.2

CNY

15.11

15.20

15.39

15.65

17.06

17.07

17.35

17.65

17

● 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.

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May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

Unit：¥ bn.
Currency

RevenueCore Operating Income

1.

Agenda2.

FYE2023 Business Plan

3.

Financial Profile

4.

4

FYE2022 Overview

Q&A Session

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

Representative Director,
President CEO
Toshihiko Hamada

Executive Officer,
Group Finance &Accounting Office, and CFO
Alan Draper1. FYE2022
Overview

2. FYE2023
Business Plan

3. Financial Profile

4. Q&A Session

1. FYE2022 Overview
Representative Director,
President CEO
Toshihiko Hamada

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May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

1. FYE2022 Overview

Summary: Progress toward Financial targets

Steady &Sustainable
GrowthPromotefinancialsoundness

Explorebusiness
opportunities

6

Supported by solid economic recovery, all business segments increased Revenues and OI.
● In the FYE2022, Revenue growth; +17.0%, and OI growth; +13.9% (Y/Y basis)

Initiated sales price revisions, surcharges, cost recovery and cost reduction activities in response to upward pressure
on energy and electricity costs.

Invested in solid economically driven projects, systematical reduction of debt, and continued stable and reliable dividend
payments to shareholder.
● Adjusted net D/E ratio improved by 0.21 basis points from the previous year, and the annual dividend per share
increased by JPY 4 or 13% from the previous full year.

The financial soundness target of net adjusted D/E ratio below <1.0 set in Feb. 2019 achieved one year ahead of schedule.

Established customer communication platforms and focal points to quickly support and react to customer demands.
Global Carbon Neutrality (CN) team established to focus on CN opportunities and to prepare groundwork
to demonstrate our Group’s cohesive and technical strengths.

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

1. FYE2022 Overview

Summary of Consolidated financial results (FYE2022 Full-term)
FYE2021Full-term

YoY

FYE2022Full-term

Difference％ Change（Unit: ￥ bn.）

（Announced on Feb. 2, 2022）

Revenue

818.2

957.1

+138.9+17.0%

932.0

Core operating income

87.2

102.7

+15.5

+17.7%

101.0

10.7%

10.7%

Non-recurring profit and loss

1.5

-1.5

-3.0

Operating income（IFRS）

88.8

101.1

+12.3

10.9%

10.6%

Income before income taxes

77.7

91.6

+13.9

+17.9%

91.0

Net incom e attributableto ow ners of the parent

55.2

64.1

+8.9

+16.1%

67.0

6.7%

6.7%

127.59148.13

Core OI margin

OI margin

NI margin

EPS（Unit: ￥）

10.8%

0.0

+13.9%

101.0
10.8%

7.2%

+20.54154.82Forex （Unit: ￥）USD

105.94113.04110(average rate during the period)

EUR

124.07131.11

130

・Total Forex impact for FYE2021 : Positive impacts of ¥30.8bn. on revenue and Positive impacts of ¥3.9 bn. on core operating income.

7

FYE2022Full-term forecast

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

1. FYE2022 Overview

Segment Revenue (FYE2022 Full-term)
FYE2022

FYE2021*Full-term 1

YoY

Full-term

Composition
ratio

Difference% Change

Forex impact（ Unit: ￥ bn. ）Gas business in Japan

341.9

372.0

38.9%

+30.1

+8.8%

+0.3

Gas business in the U.S.

189.9

224.8

23.5%

+34.9

+18.3%+12.7

Gas business in Europe

160.0

209.7

21.9%

+49.7

+31.1%+9.0

Gas business in A&O *

102.0

123.5

12.9%

+21.5

+21.1%+8.4

Thermos business

23.9

26.8

2.8%

+2.9

+12.0%+0.2

Adjustment

0.2

0.1

0.0%

-0.1

－

818.2

957.1

100.0%+138.9+17.0%*A&O: Asia and Oceania.

Consolidated total*1

Reclassified：As a result of the reclassification of segment classifications in FYE2022, figure for FYE2021 has been restated based on the new segment classifications.

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May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results+30.8

1. FYE2022 Overview

Segment Income*2 (FYE2022 Full-term)
FYE2021

FYE2022

YoY

Full-term

Composition
ratio

Difference% Change

Forex impact

29.8

30.9

30.1%

+1.1

+3.5%

+0.0

8.7%

8.3%

23.1

27.3

26.6%

+4.2

+18.1%

+1.5

12.2%

12.2%

21.0

26.3

25.6%

+5.3

+25.2%

+1.2

13.1%

12.5%

8.9

12.8

12.5%

+3.9

+43.9%

+1.0

8.7%

10.4%

5.1

6.4

6.3%

+1.3

+24.6%

+0.0

21.6%

24.0%

Adjustment

-0.8

-1.1

-1.1%

-0.3

―

Consolidated total

87.2

102.7

100.0%+15.5+17.7%

10.7%

10.7%

*

Full-term 1（ Unit: ￥ bn. ）Gas business in Japan
Segment OI margin

Gas business in the U.S.
Segment OI margin

Gas business in Europe
Segment OI margin

Gas business in A&O
Segment OI margin

Thermos business
Segment OI margin

Core OI margin*1*2

Reclassified：As a result of the reclassification of segment classifications in FYE2022, figure for FYE2021 has been restated based on the new segment classifications.
Segment Income：Represents core operating income, which is calculated as operating income excluding certain gains or losses attributable to non-recurring factors (non-recurring items).

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May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results+3.9

1. FYE2022 Overview

Cash flow (FYE2022 Full-term)
Significant operating cash flows enabled sizable capital investment, shareholder dividends, and debt reduction
Free cash flow*1
77.9（Unit：￥ bn.）

148.7

5.6
76.5

91.0

End of FYE2021
cash

51.3

Operatingcash flow

CAPEX &
Investments
and loans

Otherregardinginvesting activities

Long-term
Debt raising/
repayment*2*1

Free cash flow：Items reconstructed from consolidated statements of cash flows prepared in accordance with IFRS. Please refer to Appendix_P.29.

*2

Long-term Debt and Short-term Debt raising/repayment：Represents cash incomed/paid.

*3

Other：Indicates items such as cash lease obligations, acquisition of investments.

10

1.9

Short-term
Debt raising/
repayment*2

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

13.8

10.4

DividendPaidduring term

Other*3
regardingfinancing activities

2.4

93.6

Others(Forex etc.)

End of FYE2022
cash

1. FYE2022
Overview

2. FYE2023
Business Plan

3. Financial Profile

4. Q&A Session

2. FYE2023
Business Plan
Representative Director,
President CEO
Toshihiko Hamada

11

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

2. FYE2023 Business Plan

Summary: Business environment awareness (Assumptions for forecast)
We will continue to work, develop, and refine our business strategies to ensure achievement of performance targets identified
in the final year of the NS Vision 2026.

Uncertain
business
environment
continues
Commitment toappropriate pricerevisions

Ongoing searchfor business
opportunities

Uncertain economic environment: sharp fluctuations in exchange rates; significant price fluctuations in crude oil, liquefied
natural gas, and electricity; supply chain disruptions; and decades high inflation levels, etc.
Business confidence in each region is expected to improve moderately in general compared to the FYE2022.
● In the FYE2023, underlying revenue growth excluding currency effect, pass through, and surcharge up 2.5%,
and OI growth to be 4.9% excluding currency effect (Y/Y basis).

Proactive and quick price management to ensure increases in electricity / energy costs, which is a major industrial gas cost
driver, are passed through to the customer.
Promote service, reliability, scale, and availability of our products to existing customers, new customers, and potential
customers.
Constant pursuit of cost reduction, productivity improvement, and providing additional applications or technologies that foster
close and sticky customer relationships.

Seize business carbon neutral-related opportunities (including HyCO* projects) around the world.
Focus our management resources to continue to build and grow business relationships with existing and potential customers.
● From the FYE2023 onward, we will increase the production and manufacturing capacity of electronic material gases
as well as implement the Total Electronics strategy across the Group.

* HyCO Business: A business that supplies Hydrogen(H2) and Carbon monoxide(CO) on-site to petroleum refining and petrochemical manufacturers.

12

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

2. FYE2023 Business Plan

Summary of Consolidated financial forecast
FYE2022Full-term

YoY

FYE2023
Full-term forecast

Difference% Change（ Unit ：￥ bn. ）Revenue

957.1

950.0

-7.1

-0.7%

Core Operating Income
Core OI margin

102.7
10.7%

107.0
11.3%

+4.3

+4.2%

Non-recurring profit and loss

-1.5

0.5

+2.0

Operating Income （ IFRS）
OI margin

101.1
10.6%

107.5
11.3%

+6.4

+6.2%

Income before income taxes

91.6

97.0

+5.4

+5.9%

Net income attributableto owners of the parent
NI margin

64.1
6.7%

67.0
7.1%

+2.9

+4.5%

EPS（Unit: ￥ ）148.13154.82+6.69

EBITDA margin

20.4%

21.0%

ROCE after Tax

4.8%

5.0%

Adjusted net D/E ratio

0.94

0.86

113.04131.11115
125

Forex（Unit: ￥ ）(average rate during the period)

•

13

USD
EUR

Total Forex impact for FYE2023 full-term : Negative impacts of ￥5.8 bn. on revenue and ￥0.7 bn. on core operating income.

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

2. FYE2023 Business Plan

Segment Business Initiatives by segment
Although there are different priorities and initiatives to be addressed, we will seek to achieve sustainable Operating
Income growth through prompt and appropriate decision-making and quick actions by the heads of each business.
Business Initiatives (Summary)Gas businessin JapanGas businessin the U.S.

Gas business
in Europe

Gas businessin A&O

Thermosbusiness

14

Common Initiatives● Focus on electronics market● Improve quality of earnings● Carbon Neutrality Initiatives● Focus on Liquid CO2 and Dry Ice products● Energy cost recovery● On-site project expansion (persistent sales activities)● Explore business opportunities in resilient markets suchas home care, healthcare, and food products● Leads Group in Carbon neutrality progress● Focus on electronics market● Aggressive capital investment to improve density● Re-focus on main products; vacuum insulated mugs & sports bottles● Further advertise and expand homeware offerings

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results● Seek and compete for global HyCO projects● Response to Inflation globally● Appointment & Promotion of
People excellence across regions2. FYE2023 Business Plan

Industrial Gas business: Business characteristic
Our team has decades of technical experience which enables us to provide proven gas solutions to a wide rangeof customers and to address customer problems, inefficiencies, and / or environmental concerns.

15

Materials

Chemicals

Fabrication

Life Sciences

Steelmaking, non-ferrous refining,
glass, ceramics, cement, paper,and other materials

Petrochemical & chemical, rubber,plastics, and other organic materials

Automobiles, construction machinery,bridge building, construction,and shipbuilding

Medical, pharmaceutical,
and biotechnology

Food

Agriculture

Electronics-related

EnergyFood manufacturing and processing

Agriculture, fisheries, and forestry

Semiconductors, LCDs,
and photovoltaics

Rechargeable batteries, reusable energy,
photovoltaics, and new types of energy

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

2. FYE2023 Business Plan

Industrial Gas business: Growth Trajectory
Step 1

Sell only gas:
Provide reliable industrial gases to our customers.
→ Unless customers increase production volume,the industrial gas demand will not grow.

Step 2

Sell gas, plus equipment/services together:
Provide customers with services and solutions to make thecustomer more efficient and productive→ Linking equipment offerings and industrial gas productprovides a more comprehensive customer relationship

Step 3

Sell products with “intangible assets" that are
not easy for competitors to replicate:
Proactively look to identify and propose cost effective solutions forour customers in areas in which they were not familiar with ourtechnical capabilities

Communication is the key to our growth.
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May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

2. FYE2023 Business Plan

Industrial Gas business: Contribute toward Carbon Neutrality

Our stance

Carbon neutrality is an important global issue and currently many companies are in search ofenvironmental footprint reduction. We will work aggressively and diligently with our customers todevelop solutions over the Medium-term management plan which reduces our combined carbon footprint.

The development process is on the same track as the one we have followed so far,and we will expedite the Carbon neutral movement.
１

Brush up contact points with customers andpartners to gain recognition and interest

2

Maintain a network that connects relevant
information* under a unified operation.

3

Resolve customer issues by leveraging
our collective strength
Exercise
our Group's collective strength

Devise/study/accumulate optimal solutions[Expansion of technology, knowledge, and experience]* Relevant information: Here, we refer to (1) Issues that customers want to solve and (2) optimal solutions that our products and services can be expected to contribute to solving (1).

17

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

2. FYE2023 Business Plan

Industrial Gas business: Focus on CN-related efforts
We will work together to support and contribute to the reduction of
GHG emissions for customers.
Slogan for promoting Carbon neutral activities“We enable a carbon neutral world”
Five focus areas for the Group18

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

１

Greener combustion

2

Hydrogen solutions

3

CO2 Capture

4

Circular economy

5

Digitalization

2. FYE2023 Business Plan

Electronics business: Seize an opportunity● Demand trends: Demand for semiconductors for next-generation communications, IoT, data centers,
and mobility is strong, and demand for electronic material gases is expected to remain firm.

Business
Environment● The impact of the COVID-19 infection: Fortunately, the impact on production activities remained limited.
● Competitors: Competitors are focusing on carrier gases and new materials, and introducing homogeneousand inexpensive commercial products.

● DX: Sharing customer quality requirements across the group and responding to increasingly sophisticatedcustomer demands

Commercial
Opportunities● Gas: Aggressively expand sales by increasing production capacity for products in which we have strengths
while broadening our product lineup.

● Engineering, facilities, and on-site: Developing our operations; Total Gas Center19

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

2. FYE2023 Business Plan

Thermos business: Adapting to the Change of Market
Corporate Philosophy

Brand concept

We contribute and introduce new life style productsthat are agreeable to people and society and also
environmentally friendly.

Thermos Magic

In striving for rich, comfortable living, humanity has at points in time sacrificed
environmental concerns to attain such pursuits. We at Thermos believe it is our
mission to uphold both usability and environmental friendliness when it comes toour business, For that reason, as we work to contribute to energy-saving
measures through our manufacturing capabilities -including our insulating
technologies- we hope to provide the world with the king of value that will help
bring about even more comfortable lifestyles.

We create a comfortable human life with deliciousness, convenience by using ourunique vacuum insulation technology. We continue to stick to develop the Onlyone product that consumers realize the differences in deliciousness, convenience,and ideas.
As a company that contributes to the healthy lives, we aim to be loved for a longtime by people while being sincerely involved with the environment and society.

We create product concepts and designs by listening to consumers‘ voices and considering the needs they are seeking,and with broad product lineup, we propose new lifestyles toward affluent living under new normal after/with COVID-19.
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May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

1. FYE2022
Overview

2. FYE2023
Business Plan

3. Financial Profile

4. Q&A Session

3. Financial Profile
Executive Officer,
Group Finance &Accounting Office, and CFO
Alan Draper21

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

3. Financial Profile

Financial management｜Optimal Fund allocation● Allocate capital in accordance with the strategies and goals of the Medium-term management plan; NS Vision 2026.

Basic Concept● Prioritize capital projects based on economic / financial returns, risk profile, customer / end market outlook.
● Fast, nimble, and proactive response to business opportunities and customer inquiries.

Financialsoundness

BudgetAdjusted net D/E Ratio(End of FYE2023)

Leverage Reduction― Reduction of financial expenses

0.86

Fortifying the capital structure

BudgetCAPEX and investment

Economies of scale / improve customer density

104.4

Pursue group synergies and globalization efforts(Cash basis: ￥ bn.)

Growthinvestment

Investment for Growth driver― Achieve growth, profitability,and efficiency

Shareholder
Returns

Stable & business performance-linked― Fulfillment of shareholders‘and investors' expectations

22

Budgetannual dividend(￥)

36

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

Prioritize and invest in projects with solid economic returns and earnings potential
Seek M&A opportunities that improve customer density, expand geographic presence,or enhance technical capabilities

3. Financial Profile

Cash flow forecast／Dividend
Cash flow forecast

Dividend Trend

Leveraging our strong cash generation to reduce
debt and invest in the future while also returning
profits to shareholders

Stable and reliable dividend
Dividend payout ratio
24.3%

27.1%
23.9%

（Unit：￥ bn.）

59.7

26.2%

24.9%

22.7%

20.3%

（Unit：￥ ）Year-end dividendInterim dividend

93.6

55.6

0.4
15.7

End of FYE2022
cash（Actual）

Free
Cash flow*１

Scheduled debt
maturities*2

Annualdividend

78.6
3.8

Other
regardingfinancing
activities

Forex effect, End of FYE2023
and others
cash

12

13

2014.32015.316

2016.3（Forecast）*1

Free cash flow：Cash flows from operating activities + (Announced) Divesture Proceeds – CAPEX. Please refer to Appendix_P.29.

*2

Scheduled debt maturities：Indicates cash paid (including Repayments of lease obligations)

23

23.5%

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

20

2017.323

2018.325

2019.328

2020.330

2021.323.0%

342022.323.3%

362023.3［Planned］［Estimated］

J-GAAP← →IFRSClosing remarks

Representative Director,
President CEO
Toshihiko Hamada24

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

Q&A Session

Representative Director,
President CEO
Toshihiko Hamada

Member of the Board,
Representative Director
and President of Taiyo
Nippon Sanso Corporation
Kenji Nagata

25

Representative Director
and President of Thermos
K.K.

Senior Executive Officer,
Group Corporate Planning
OfficeYuji Kataoka

Tsutomu Moroishi

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

Senior Executive Officer,
Group Sustainability
Management Office,and CSO

Executive Officer,
Group Finance &Accounting Office,and CFO（Chief Financial Officer）

Senior General Manager,
Corporate & Business
Planning,
Group Corporate Planning
Office,Takeshi Miki

Alan Draper

Koichiro Kubo

（Chief Sustainability Officer）

Appendix

27

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

NIPPON SANSO Holdings Group Summary

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

Published on May 11, 2022

Corporate Philosophy

Corporate Information（As of March 31, 2022）

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.

Representative Director, President CEO
Representative

Toshihiko Hamada

Common stock

37.3 billion yen

Stock information（As of March 31, 2022）

Number of sharesGroup 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.

433,092,837

Number of shareholders
Listed stock exchanges

Main Core business

14,709
Tokyo Stock Exchange Prime Market

TickerIndustrial Gas businessElectronics business

Thermos business4091.T

Distribution by share holders (%)
Mitsubishi Chemical Holdings0%

Making life better through gas technology.

10%

20%

Japanese Indivisuals and others

Foreign Institutions and Individuals

50.59

30%

40%

Other Japanese Corporations

50%

60%

9.82

15.84

70%

80%

Japanese Financial Institutions

5.55

90%

100%

18.20

Revenue / Employee personnel by Segment （As of Match 31, 2022）
3%

7%

13%
39%

22%

0.4%
33%

22%

FYE2023 Financial Forecast（IFRS)

19,398\957.1bn.

people

15%
23%

23%
Japan

US

EuropeAsia & Oceania

Thermos

Corporate

Revenue¥950.0 bn.

Operating income¥107.5 bn.

Net income attributable toowners of the parent

EPS¥67.0 bn.
¥154.82

Appendix

Free cash flow and Debt situation（Unit：￥ bn.）

FYE2021

FYE2022YoY

FYE2023

Budget's YoY

Full-term

Full-term

Difference % change

Full-term budget

Difference % change

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

77.7
86.3
0.5
-15.3

91.6
92.4
-20.6
-14.6

+13.9
+6.1
-21.1
+0.7

+17.9%

97.0
92.6
0.0
-20.3

+5.4
+0.2
+20.6
-5.7

+5.9%

Cash flows from operating activities

149.2

148.7

-0.5

-0.3%

169.3

+20.6

+13.8%

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

-60.0
-0.7
1.1

-74.4
-2.0
5.6

-14.4
-1.3
+4.5

-104.4
－
-5.2

-30.0
+2.0
-10.8

Cash flows from investing activities

-59.6

-70.8

-11.2

-18.7%-109.6-38.8-54.7%

Free cash flow

89.5

77.9

-11.6

-13.0%

59.7

-18.2

-23.4%Net interest-bearing liabilities

858.1

835.5

-22.6

765.5

-70.0 *（ Of which, hybrid financing amount ）

250.0

250.0

－

250.0

－

Adjusted net D/E ratio

1.15

0.94

-0.21

0.86

-0.08

(Debt situation）* This amount includes a decrease of ￥31.0 bn. due to the effect of foreign currency translation.

29

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

Appendix

Debt/Equity Performance
Net D/E ratio（General net D/E ratio）

UndatedAdjusted
net D/E ratio（Our indicators that have been disclosed）

Financial management
net D/E ratio（Our internal financial discipline indicator）

End of FYE2022
End of FYE2022

1.33

End of FYE2022

0.94

0.97

Budget at the End of FYE2023（March 31, 2023）

0.86
Net interest-bearing debt

Net interest-bearing debt ― Equity-type debt*

Total equity attributable to owners of parent

Total equity attributable to owners of parent + Equity-type debt** Equity-type debt：Our internal name of amount which is 50% of the amount raised through hybrid financing (¥250 bn.) is accepted as "capital" by rating agencies.

30

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

Net interest-bearing debt
― Lease obligations ― Equity-type debt*
Total equity attributable to owners of parent― Other components of equity + Equity-type debt*

Appendix

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

Operating income（IFRS）
OI margin

9.3%

646.2

740.3

850.2

818.2

2019.311.0%

2021.3

Net interest-bearing debts

10.6%

2022.3（¥ bn.）

2018.32020.32021.3

Capital expenditures

2022.3（¥ bn.）（¥ bn.）

NI margin

101.1

88.8

66.8

2019.3

Profit attributableto owners of the parent

7.6%

93.9

2020.3

10.9%

957.1

59.8

2018.39.0%（¥ bn.）

5.6%

48.9

41.2

2018.32019.3

6.7%

6.7%

53.3

55.2

64.1

2020.32021.32022.3

6.3%

Depreciation
and amortization（¥ bn.）

Hybrid Finance (HBF)Net debt excluding HBF

1.54

1.45

Adjusted net D/E ratio*

1.15
0.94

76.6
62.5

72.8

60.0

74.4
43.2

695.7

648.3

608.1

585.5

274.9

250.0

250.0

250.0

250.0

2018.32019.32020.32021.32022.3*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.

31

2018.32019.32020.32021.32022.3*It’s recorded on a construction basis until FYE2019 and on a cash basis from FYE2020 onwards.

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

2018.3

83.7

86.3

2020.32021.3

92.4

56.1

2019.32022.3

Appendix

Glossary: EBITDA Margin／ROCE after Tax
EBITDA marginand EBITDA

EBITDA（￥ bn.）（Earnings Before Interest Taxes Depreciation and Amortization）

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

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.

EBITDA
margin

16.0%

103.2

2018.3

ROCE after Tax

16.5%

121.9

2019.3

20.5%

21.2%

174.1

173.6

2020.32021.3

ROCE after Tax
and NOPAT

20.4
%

195.1

2022.3（￥ bn.）（Reference）
ROCE and Core OI（￥ bn.）（Return On Capital Employed after Tax ）=NOPAT(Net Operating Profit After Tax)

ROCE

ROCE after Tax

8.4%

6.1%

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

4.5%

4.6%

4.4%

64.6

62.8

4.8%

6.2%

6.4%

6.1%

90.3

87.2

2020.32021.3

6.8%* 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.

32

43.4

47.9

2018.32019.32020.32021.3

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

73.0

2022.360.0

65.8

2018.32019.3102.7

2022.3

Appendix

Industrial gas supply system
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

33（ Small-scale supply）

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

Supply via CylinderLP
Gas

Thermos products deliver what matters every time.
As the leading manufacturer of convenient insulated product for over 100 years,
Thermos is trusted by consumers to provide innovative portable containers that
promote a safe and healthy lifestyle.
Thermos delivers when it matters.
At Thermos, We carefully choose the best available materials,
and produce products with consistent quality and reliable performance.
We ensure the excellence of our products by testing for quality.

34

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results

For further information, please contact:
Public Relations for media

Investor Relations for investors

Public Relations,Group Human Resources & Corporate Secretariat Office

Investor Relations,Group Finance & Accounting Office

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
Annual Shareholder meeting
Q1 FYE2023 Earnings Call

June 17, 2022
July 29, 2022

www.nipponsanso-hd.co.jp/en/
NIPPON SANSO Holdings Corporation (Ticker:4091.T)
Headquarters：1-3-26 Koyama Shinagawa-ku, Tokyo 142-0062, Japan35

May 20, 2022 | NIPPON SANSO Holdings Analyst Conference presentation FYE2022 results© 2022 NIPPON SANSO Holdings Corporation All rights reserved