Carbon neutrality future

Enable carbon neutral world.

and NIPPON SANSO Holdings Group

19th CITIC CLSA Japan Forum 2023
Corporate presentation
May 25, 2023
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”).

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May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

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＞

Assumption

Unit：¥ bn.

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

Currency

Revenue

Average Forex rates
FYE2022

FYE2023

FYE2024
Full-term

Unit：JPY

1Q

1st Half

9M

Full-term

1Q

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 11, 2023)

USD

109.76110.10111.45113.04131.25135.30136.85136.00130.00

USD

+2.2

+0.28

EUR

132.44131.16130.96131.11138.75139.14140.83141.62140.00

EUR

+1.9

+0.25

SGD

82.41

82.01

82.77

83.83

94.97

97.12

98.61

99.05

97.10

AUD

84.15

82.33

82.69

83.33

92.52

93.51

93.16

92.67

93.50

CNY

17.06

17.07

17.35

17.65

19.71

19.91

19.81

19.71

19.90

● 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.

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May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

Contents

1.

Company Overview

2.

Medium-term management plan
“NS Vision 2026”

3.

Business Opportunities in Carbon Neutrality

4.

Appendix(Information)
In this slide deck, the term “Carbon Neutrality (Neutral)" appears frequently, so the abbreviation "CN" is used forthe sake of readability and visibility. Please be aware of this in advance.

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May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

1. Company Overview

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May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

Corporate Overview
NSHD’s Group operating structure
Company name
Ticker (Tokyo Stock Exchange)

4091.T

Established

October 30, 1910

Head office

1-3-26 Koyama, Shinagawa-ku Tokyo, Japan

President CEO

6

Nippon Sanso Holdings Corporation (NSHD)

Thermos

Japan

Thermos K.K. group

Taiyo Nippon Sanso
Corporation group

Nippon Sanso
Holdings
Corporation

Toshihiko Hamada

Executive Officer & CFO

Alan D Draper

Employees [As of March 31, 2023]

19,579

Revenue (￥bn.) [FYE2023]

1,186.6

Operating income (￥bn.) [FYE2023]

119.5

OI margin [FYE2023]

10.1%

Countries Served

32 Countries and Areas

Asia & Oceania

United States

Asia/Oceania region
group companies

Matheson Tri-Gas, Inc.
group

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

EuropeNippon Gases
Euro-Holding S.L.U.
group

Corporate Philosophy

Group Philosophy

Group Vision

7

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

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.

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

Business Performance over the past 7 years
Revenue(billions of yen)

Revenue¥1,186.6bn.

1,500Core OI¥123.1bn.

Revenue
1,250

1,000

Japan
United States
EuropeAsia & Oceania
Thermos
OI: Core Operating Income

150

125

CAGR
Revenue: +13%
Core OI: +14%

100

750

75

500

50

250

25

0

0
FYE2017

FYE2018

FYE2019

FYE2020

FYE2021*Since the transition to IFRS in FYE2017, Operating Income is presented as Core OI, which is calculated by excluding gains and losses arising from non-recurring factors from OI.

8

OI(billions of yen)

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

FYE2022

FYE2023

Our key businesses
Electronics

Industrial Gas

Main Products

9－Oxygen－Nitrogen－Argon－Hydrogen, CO and syngas－Carbon dioxide－Helium－Related equipment & construction

Main Products

Thermos－Arsine (AsH3)－Diborane (B2H6)－Fluoromethane (CH3F)－Hydrogen chloride (HCL)－Phosphine (PH3)－Silane (SiH4)－Related equipment & construction

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

Main Products－Bottle－Mug－Tumbler－Frying-pan
－Pan
－Dish

Percentage of Revenue by Business●Composition●Percentage of revenue by business
Gas-Bulk/On-site/Package→Air separation gases (O2, N2, Ar)→Other gases(CO2, He, H2, acetylene)→Medical gases (O2, N2O)
-Propane, butane and other liquid gases-Specialty gases(Electronic materials gases, Standard gases etc.)

Equipment and installation, others-Gas-related and plant, other→Gas-related equipment→Cryogenic air separation units→Helium containers→Medical-related equipment,
Stable isotopes, Cell cryopreservation containers→Construction of LP gas facilities-Electronics-related→Gas supply facility installation andconstruction and MOCVD systems-Welding and cutting-related→Hard goods (welding material)

Thermos
3%

Electronics-related
4%

Bulk
33％

Equipment andinstallation,
Gas-related
othersand plant,
other
22%
10%

Revenue¥1,186.6 bn.

Specialty
gases
9%(FYE2023 full term)

Gas
75%

LP gas6%

Thermos-Thermos→Stainless steel vacuum bottles andKitchenware (ex. Frying pan)10

Air separation gases 17%
Other gases
16%（CO2, He etc.）

Welding andother-related
8%

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

Package11%

On-site16%

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 establish 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 install 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

11（ Small-scale supply）

Supply via Cylinder

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

LP
Gas

Global Operation*Figures for each segment are for FYE2023.
*Figures in the yellow pie charts (%) represent the sales composition ratio of each segment.

EuropeEuropeJapan

United States

Revenue

Revenue

Revenue¥ 272.8bn.

¥ 420.4bn.

¥ 303.0bn.

Segment OI

Segment OI

Segment OI¥ 34.9bn.

¥ 31.6bn.

¥ 37.0bn.

OI margin
12.8%

OI margin
7.5%

23%
Japan

35%
United States

OI margin
12.2%

Asia &
Oceania

Total
Revenue¥ 1,186.6bn.
Total Sales Ratio

100%

12

Asia &
Oceania

Thermos

Revenue

Revenue¥ 159.9bn.

¥ 30.1bn.

Segment OI

Segment OI¥ 15.4bn.

¥ 6.0bn.

OI margin
9.7%

13%

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

OI margin
19.9%

3%

26%

FYE2024 Consolidated Forecast
FYE2023
Full-term

FYE2024
Full-term forecast

YoY
Difference％ Change(Announced on May 11, 2023)（Unit: ￥ bn.）

1,186.6

1,160.0

-26.6

-2.2%

123.1

127.5

+4.4

+3.6%

10.4%

11.0%

Non-recurring profit and loss

-3.5

－

+3.5

Operating income（ IFRS）+8.0

RevenueCore operating income
Core OI margin

119.5

127.5

OI margin

10.1%

11.0%

EBITDA margin

19.3%

20.2%

-14.0

-25.5

-11.5

Income before income taxes
Income tax expenses

105.5

102.0

-3.5

29.5

28.5

-1.0

Net income

75.9

73.5

-2.4

-3.2%

73.0

70.5

-2.5

-3.5%

6.2%

6.1%

2.8

3.0

Finance costs

+6.7%

-3.3%

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

NI margin
Net income attributable to non-controlling interests
Forex （Unit: JPY ）USD

136.00130.00(average rate during the period)

EUR

141.62140.00

AUD

92.67

93.50

+0.2

In the FYE2024, planned revenue growth excluding deconsolidation change and currency +2%; Core OI growth; +5% (YoY excluding FX impact).
Total Forex impact for FYE2024 Full-term forecast : Negative impacts of ￥18.3 bn. on revenue and ￥2.2 bn. on core operating income.

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May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

Dividend Trend
Stable and reliable dividend linked to performance
Dividend payout ratio

24.3%

27.1%

23.9%

26.2%

24.9%

22.7%

23.5%

23.0%

22.5%

20.3%

38
（Unit：￥ ）

34

CAGR

+14%
20
16

23
12

25

28

30
20

Year-end

Interim

18
14

16

14

16

18

2021

2022

2023

13

12

13

6

7
6

9

12

6

7

11

14

2014

2015

2016

2017

2018

2019

2020

11
9

［Planned］

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May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

（FYE）

2. Medium-term management plan
“NS Vision 2026”

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May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

Implement the five focused fields
Our MTP; Medium-Term management Plan
SloganNS Vision 2026 : Enabling the Future
We formulated our first MTP, NS Vision 2026, after the establishment of
NSHD in Oct. 2020 with the 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.”
Our NSHD Group developed five focused fields for our MTP:
Sustainability Management, Exploring New Business toward
Carbon Neutrality (CN), Total Electronics, Operational Excellence,and DX Initiatives.
We will strengthen the group’s comprehensive capabilities
and achieve further growth to provide a bright and comfortable future
for people, society, and the Earth.

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May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

Targeted Group KPI - Summary
Non-Financial KPI

Financial KPI (FYE2026)

RevenueCore Operating Income

EBITDA Margin

JPY 975.0-1,000.0 bn

JPY 125.0-135.0 bn**

Group: ≥24%
Each segment: ≥17～33%

Reduction rate of GHG emissions(Base year: FYE2019)

GHG reduced emissions throughenvironmental product offer

Lost Time Injury Rate

18%: FYE2026 32%: FYE2031
Low er custom er GHG em issions throughenvironm ental product offerings and applications>NSHD group GHG em issions (FYE2026)≤1.6 : FYE2026≥22%: FYE2026

Adjusted net D/E Ratio≤0.7

ROCE after Tax≥6%

Rate of female employees
Rate of receiving
compliance training*Due to the uncertainty in the global economy, revenue and core operating income are shown in range.

Rate of female
management posts17

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

25%: FYE2031

100%: FYE2026≥18%: FYE2026
22%: FYE2031

Capital Allocation
IN

OUT➢ Strategic Investment for

Investment- CN: Carbon Neutral related initiatives- DX: Digital Transformation initiatives

Total

Operating CF¥730.0bn.

¥433.0bn.
Includes¥38.0bn.

of strategic initiatives

Strategic
Thermos

9%

2%
A&O*

Strategic initiatives

12%

Japan

24%

14%

NS Vision 2026
(For 4 yr.)37%

Investment ratio
by Purpose

Investment ratio
by Segment

Dividend &Repaymentof debt

Growth initiatives

45%

24%
Europe27%

6%US
Base/Underlying（Reference）Investment / revenue % by Segment
Japan: 7.4%, US: 10.5%, Europe: 12.9%, *Asia & Oceania: 11.1%, Thermos: 6.9%

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May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

M&A

Key CAPEX for our CN initiatives

Significant growth opportunities; Our diversified capital portfolio is aligned with our MTP NS Vision （色使いの関係で、Q2026.

左記ドーナツチャート

9%“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

By Industry

28%
Industrial

FYE202324%（as of the end of Q4）

Approx.

¥120bn.*

Of which Environmental &Hydrogen society contribution related

0.5%

50%

“Environmental & Hydrogen society contribution
Total
related” includes projects that contribute to our group
換算レート（ご参考）and the customers' efforts to become carbon
neutrality.
（e.g.） ・Modernizing our plants to100state-of-the-art equipment
190
・Hydrogen production related
Industry（HyCO Plant, and Green hydrogenByJV）

38%
Steel & Metals

Electronics

Industrial

Healthcare

Chemicals & Energy

Note that the above is an aggregation of investments which 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.
* Converted to JPY using the average exchange rate for the Q4 of the FYE2023, as shown in the Notes (Please see p.3).

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May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

OthersEight Non-financial programs ＆ NS Vision 2026 Non-financial KPI
FYE2026
TargetEnvironment

１ CNP Ⅰ: Carbon Neutral Program I＜Environment＞● Reduction rate of GHG emissions(Base year: FYE2019*1)

２ CNP Ⅱ: Carbon Neutral Program Ⅱ
３ ZWP:

Zero Waste Program● GHG reduced contribution
exceeds GHG emission (Scope 1+2)

18%
down

X＞Y

･Breakdown information(Unit: Thousands of tonnes CO2e )X: Lower customer GHG emissions through

４ SWP:
５ SFP:

environmental product offerings and applications

Sustainable Water Program
Safety First Program

Y: NSHD Group GHG emission (Scope 1＋2)

Social＜Safety Management＞● Lost Time Injury Rate

≤1.6

６ QRP:

Quality Reliability Program＜HR＞● Rate of female employees≥22%

７ TDP:

Talent Diversity Program● Rate of female management posts≥18%

Governance

８ CPP:

Compliance Penetration Program＜Compliance＞● Rate of receiving compliance training*2*1 The figure for the volume of GHG emissions for FYE2019, which is the reference value, calculate the actual GHG emissions in FYE2019 plus the following:1) estimated emissions of the Gas Business in Europe in FYE2019 and 2) estimated emissions of the U.S. HyCO business in FYE2019.
*2 We plan to begin data collection from the current fiscal year; FYE2023.

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May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

100%

CNPⅠ: To reduce the NSHD Group's GHG emissions through our own internal efforts（Carbon Neutral Program I）

Aiming for CN by 2050
Achieving CN through Technological breakthroughNon-financial

KPI

GHG emissions reduction target（Base year: FYE2019*）（Greenhouse gas）

FYE2026：18％ down, FYE2031：32％down* The figure for the volume of GHG emissions for FYE2019, which is the reference value, calculate the actual GHG emissions in FYE2019 plus thefollowing: 1) estimated emissions of the Gas Business in Europe in FYE2019 and 2) estimated emissions of the U.S. HyCO business in FYE2019.

Scenarios for achieving goals
Internal measures

External environment

Changes in power supply configuration
Reduction due to revision of emission factors（Scope2）
Estimates based on IEA emission factor projections
Source: IEA Carbon intensity of electricity generation in selected regionsin the Sustainable Development Scenario, 2000-2040●Composition of GHG emissions of our group
Mainly18%

HyCO-derived

Scope 1

Initiatives for CN

Scope 2Mainly82%

21Electricity-derived

Further promotion of energy conservation & efficient- Reduced energy consumptionenergy use①Replacement and modernization of Air Separation Units (ASUs)②Reduction of electricity usage through digital solution technologies③Streamlining of logistics and review of transport

Promotion of the use of renewable energy and green power- Greening Electricity Procurement①Switch to low emission coefficient electricity suppliers②Purchase green power certificates③Introduce renewable energy

Carbon capture and offsets - Consideration of CCUS implementation①Promote CO2 capture②Carbon offset through new technology, forest conservation, and tree-planting activities, etc.

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

CNPⅡ: To reduce customer GHG emissions through the promotion & use of our products（Carbon Neutral Program Ⅱ）

Contribute to the reduction of global
GHG emissions through the Group's
products and technologies

Non-financial

KPI

X: Lower customer GHG emissions
through environmental product offerings and applications
Y: NSHD Group GHG emission (Scope 1＋2)

FYE2026： X ＞YScenarios for achieving goals
External environment
Social demands and requirements

Contribution through the Group's existing technologies

Working toward Net Zero is a corporate imperative.

①Oxygen-enriched combustion in blast furnaces②H2 and NH3 combustion in industrial furnaces③Carbon capture and utilization （on a small scale）

Customer Technological evolution
Drive toward carbon neutrality at our group's customers
Dramatic technological advancement and rapid replacementof existing technologies(e.g., Hydrogen-reduced iron making with economic rationality,
highly efficient electric furnace conversion)

22

Internal measures

Expansion of the Group’s current applications and capabilities①Areas of contribution other than the above existing technologies（In addition to in-house R&D, mutual collaboration with other companies
through strategic alliances, etc.）②Carbon capture and utilization （on a large scale）

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

3. Business Opportunities in Carbon Neutrality

23

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

What we aim to be（Experts who are well versed in the physical properties and features of gases）

Produce industrial gases and supply them safely and reliably to all industrial fields.
Contributions to the development of each industry and solving social issues through the supply of industrial gases.

Our Group's Goals（Toward 2030）

Solution provider for a CN Society
NS Vision 2026 Focused Fields： Exploring New Business toward Carbon Neutrality
Slogan“Enable carbon neutral world”
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May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

Basic Policy and Promotion Structure
Recognition of business environment andresponse stance✓ Economic and technological challenges make it difficult tobuild an ideal green society in a single step.
✓ Each region has different methods and priorities foraddressing CN✓ 30-year transition period may cause a temporary swing orloss of momentum in CN efforts due to war, epidemics, etc.

✓ Information is shared frequently by the RCNWG
and CN global experts (by market segment and technology field).
✓ Global support for technology and expertise needed by RCNWG✓ Group-wide efforts are reported to CNSC on a regular basis✓ CNSC monitors the movement of each region, selects themes
for in-house technology development, and considers
investment and equity participation in accordancewith market trends.
MarketNSHD
CN

Steering Committee（CNSC）

Basic Policy

Head

CN Global
Executive Team
（Japan-U.S.-Europe Mixed Team）
Head

25

CN Global
ExpertTechnology✓ Promote in-house technology development andcollaborate with strategic partners

4 fields

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

Japan

9 segments✓ Ensure contribution to CN by proposing realistic
and feasible solutions（Quick wins）✓ Strengthening the communicate across all
stakeholders

Regional CN
Working Group（RCNWG）

Collaboration✓ All industries (steel, chemical, glass, cement, automotive, electronics, etc.)
are moving toward CN

Integrated promotion system
to respond promptly to customer needs

The U.S.

EuropeAsia &
OceaniaFour technologies for contributing CN

Combustion

HyCO*

CO2 Recovery

O2 Production

Combustion technology is a key
enabler for CN goals. Oxyfuelcombustion has a high flame
temperature and a small amountof exhaust gas, improving heattransfer efficiency.

Hydrogen production processes
from fossil fuels may be modified
to isolate the CO2 as a purestream to then be dried,compressed and transported forstorage or utilization.

CO2 recovery units capture theCO₂ emitted by industrial
processes and prepare it for otheruses. By using the most suitable
CO2 capture technology it’s
possible to reuse the product indifferent production processes orin other areas of industry after
purification.

The process to produce oxygen is
traditionally done by the cryogenic
distillation of air into its main
components, which are oxygenand nitrogen gas. The oxygen isfurther compressed to the requiredpressure of the carbon neutral
application.

Steel, Glass, Aluminum,Non-ferrous
Other metal processing

Refineries, Petrochemicals
Renewable fuels, Steel

Steel, Refineries,
Petrochemicals, Cement

Any manufacturing industry
that uses oxidation processes（Oxy-fuel combustion）（Technology）（Main target）* HyCO business：On-site supply of hydrogen (Hydrogen) and carbon monoxide (Carbon monoxide) mainly to petroleum refining and petrochemical companies

26

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

One of our activities: Enhance our global H2 manufacturer footprint
HyCO and Hydrogen (H2) production bases of our group（ Supply capabilities ：＞1,000Nm3/h [including SMR and By-product] ）Europe3

bases

India*

As of Mar. 31,2023

Japan

The U.S.

3bases5basesIn addition to conventional Hydrogen production from
LNG (HyCO), Hydrogen is manufactured fromrenewable Hydro-carbon fuel*, a byproduct of renewablediesel produced by our customer, Vertex Energy

10→Vertex Energy, Inc.

base

1base

（Mobile, Alabama）

Peru

Refine the capability to produce large volumes of Gray H2 with HyCO technology in the 1st step,and supply Blue H2 in combination with CCUS; Carbon Capture Utilization Storage function as 2nd step.
* renewable Hydro-carbon fuel (feedstocks) : C1-C10 hydrocarbon streams including bio-naphtha and other bio-offgases

27

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

Our MTPNS Vision 2026 Focused Fields： Exploring New Business toward Carbon Neutrality

Our thought
The value standard of “CN" and “Sustainability" will be added to the perspective of all activities.
Qualitative changes in the Value Chain adapted to the new society are essential.
1. Quick wins：Building on our track record of acquiring CN and CN related projects
2. Co-creation of value：Develop our own technologies while building collaborative strategic relationships with advanced technological partners

Strengthening “Communications” across all stakeholders（e.g.：dedicated website introduced as a tool for this purpose. > https://www.carbonneutralworld.com/ ）Contributions to CN by 2050
Two important perspectives on the transition period of the next 30 years
Efficient Means of reducing environmental impact × Economic viability as a business28

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

Closing remarks

29

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

Q&A Session

Executive Officer,
Group Finance & Accounting Office,and CFO
Alan Draper31

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

4. Appendix

32

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

NIPPON SANSO Holdings Group Summary

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

Published on May 11, 2023

Corporate Philosophy

Corporate Information（As of March 31, 2023）

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.

Representative Director, President CEO
Representative

Toshihiko Hamada

Common stock

37.3 billion yen

Stock information（As of March 31, 2023）

Number of sharesGroup Vision
enhance human well-being and contribute to a more sustainable future.

433,092,837

Number of shareholders

14,743

Listed stock exchanges

Main Core businessTokyo Stock Exchange Prime Market

Ticker4091.T

Distribution by share holders (%)

10%

20%

Foreign Institutions and Individuals

30%

Industrial Gas businessJapanese Indivisuals and others

Mitsubishi Chemical Group 50.6

0%

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

40%

Other Japanese Corporations

50%

60%

Thermos business

9.7

17.3

70%

80%

Japanese Financial Institutions

5.2

Electronics business

90%

100%

17.2

Revenue / Employee personnel by Segment （As of Match 31, 2023）
3%

7%

13%
35%

23%

0.5%
32%

22%

19,579¥1,186.6bn.

FYE2024 Financial Forecast（IFRS)Revenue¥1,160.0 bn.

Operating income¥127.5 bn.

people

15%
23%

26%
Japan

33

US

EuropeAsia & Oceania

Thermos

Corporate

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

Net income attributable toowners of the parent

EPS¥70.5 bn.
¥162.87

Our Medium-term management plan Summary

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

Published on May 11, 2023

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\975.0-1000.0 bn.

Core Operating Income\125.0-135.0 bn.

EBITDA margin

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

Europe10%20%

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 %FYE2031:25 %FYE2026:≥18 %FYE2031:

22 %＜Compliance＞
＜HR＞

34

Thermos

70%

80%

2%

9%

90%

100%

Strategic (beyond regions)

37%
30%

Base/Underlying

Rate of female management posts

Asia & Oceania

45%0%（Note）Forex rate (Assumption) : USD \115 EUR \125Rate of female employees

60%

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

50%≤0.7 times

ROCE after Tax

Lost Time Injury Rate

14%

24%

40%

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

40%

50%

Growth initiatives

60%

12%
70%

Strategic initiatives

80%

M&A

90%

6%
100%

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
850.2
740.3

11.0%

10.9%

10.6%

10.1%

9.0%

NI margin

957.1

119.5

818.2

93.9

88.8

101.1

5.6%

6.7%

6.7%

53.3

55.2

64.1

2020.32021.32022.3

6.3%

66.8
41.2

2019.32020.32021.32022.32023.3（¥ bn.）Net interest-bearing debts

2019.32021.32022.3（¥ bn.）Net debt excluding HBF

7.3%

7.8%

Depreciation
and amortization

2023.3（¥ bn.）

7.7%

Adjusted net D/E ratio*

1.15
0.94

91.8
0.81

76.6

72.8

695.7

648.3

608.1

585.5

559.5

250.0

250.0

250.0

250.0

250.0

2019.32020.32021.32022.32023.3*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.

2019.32020.3

105.7

74.4
60.0

35

2019.373.0

CAPEX % Sales

8.6%

1.45

2023.3

Capital expenditures
10.4%

Hybrid Finance (HBF)

1.54

2020.36.2%

2021.3

83.7

86.3

92.4

2020.32021.32022.356.1

2022.32023.3*It’s recorded on a construction basis until FYE2019 and on a cash basis from FYE2020 onwards.

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

2019.32023.3

Business performance by segment（FYE2023 full-term）
FYE2023

FYE2022

Composition
ratio

Full-term

Full-term

YoY
Difference% Change

Forex impact（Unit: ￥ bn.）

Segment OI

372.0
30.9

420.4
31.6

Segment OI margin

8.3%

7.5%

Revenue
Segment OI

224.8
27.3

303.0
37.0

Segment OI margin

12.2%

12.2%

Revenue
Segment OI

209.7
26.3

272.8
34.9

Segment OI margin

12.5%

12.8%

Revenue
Segment OI

123.5
12.8

159.9
15.4

Segment OI margin

10.4%

9.7%

Revenue
Segment OI

26.8
6.4

30.1
6.0

Segment OI margin

24.0%

19.9%

0.1
-1.1

0.0
-2.0

Core OI

957.1
102.7

1,186.6
123.1

Core OI margin

10.7%

10.4%

RevenueJapan

United States

EuropeAsia & Oceania

Thermos

Revenue

Adjustment

Segment OI

Revenue

Consolidated total

36

35.4%
25.7%

25.5%
30.1%

23.0%
28.3%

13.5%
12.6%

2.5%
4.9%

0.0%
-1.6%

100.0%
100.0%

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

+48.4
+0.7

+13.0%
+2.4%

+0.4
+0.1

+78.2
+9.7

+34.8%+35.7%

+45.6
+5.7

+63.1
+8.6

+30.1%+32.7%

+16.8
+2.1

+36.4
+2.6

+29.5%+20.5%

+16.3
+1.7

+3.3
-0.4

+12.4%
-6.5%

+0.4
+0.1

-0.1
-0.9

―
―

+229.5+20.4+24.0%+19.9%+79.6+9.9

Improving to fruitful report for our stakeholders
Production process for 2022 edition

All Stakeholders(Shareholders, Investors, Our staffs etc.)
Opinions/Requests

Issuing the Report

NSHD Integrated Report Production Committee& Production partner
Secretariat: NSHD Corporate Communication team (PR&IR)
Sub-heads

Head

Close Communication & Good Collaboration

NSHD group companies
NSHD integrated report 2022

(Japan/the U.S./Europe/Asia & Oceania/Thermos)（We have released on September 28, 2022.）
Please jump to the access webpage link. > https://www.nipponsanso-hd.co.jp/en/ir/library/integrated_report.html

37

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

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.

38

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

For further information, please contact:

Investor Relations for investors

Upcoming IR events
Q1 FYE2024 Earnings Call

Investor Relations, Group Finance & Accounting OfficeTel: +81 (0)3-5788-8512
E-mail：Nshd.ir@nipponsanso-hd.co.jp

July 28, 2023

www.nipponsanso-hd.co.jp/en/

NIPPON SANSO Holdings Corporation (Ticker:4091.T)
Headquarters：1-3-26 Koyama Shinagawa-ku, Tokyo 142-0062, Japan39

May 25, 2023 | NIPPON SANSO Holdings presentation material for 19th CITIC CLSA Japan Forum 2023

© 2023 NIPPON SANSO Holdings Corporation All rights reserved