Q2 FYE2024
Consolidated Financial Results
Earnings Announcement（ Six months ended September, 2023 ）October 31, 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”).

2

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

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

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

Unit：¥ bn.

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

Currency

Revenue

Average Forex rates
FYE2023

FYE2024

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.）FYE2024

FYE2024(Updated)(Previous)

Full-term

Full-term

Assumption

Assumption（Apr.-Mar.）（Apr.-Mar.）(Announced on October 31, 2023)(Announced on May 11, 2023)

USD

131.25135.30136.85136.00139.63142.61142.61130EUR138.75139.14140.83141.62151.89154.81154.81

140

SGD

94.97

97.12

98.61

99.05

103.66105.79105.79

97.1

AUD

92.52

93.51

93.16

92.67

91.94

93.44

93.44

93.5

CNY

19.71

19.91

19.81

19.71

19.67

19.87

19.87

19.9

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

3

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 resultsCore Operating Income

USD

+2.2

+0.28

EUR

+1.9

+0.25

Contents

1.

Strategic overview

2.

Integrated Report

3.

Q2 FYE2024 Business performance-1. Q2 Quarter Period performance-2. First half Cumulative performance

4.

FYE2024 Full-term Forecast

Appendix4

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

1. Strategic overview

5

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

1. Strategic overview

Key Highlights

Expand and accelerate Operational ExcellenceContinue price management

Explore Carbon Neutrality-related business opportunities
Seize business opportunities in the Electronics industry
Enhance and continue to improve profitability

6

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

1. Strategic overview

Our Medium-term Management plan:

NS Vision 2026 | Enabling the FutureGroup Philosophy

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

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

7

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

1. Strategic overview

Non-financial KPI target in NS Vision 2026
FYE2023
ActualEnvironment

FYE2026
Target＜Environment＞● Reduction rate of GHG emissions

12.3%

18%

dow n

dow n

*1

(Base year: FYE2019 )● GHG reduced contribution
exceeds GHG emission (Scope 1+2)

X＞Y

X＞Y

･Breakdown information ： Please see the details here.
(Unit: Thousands of tonnes CO2e )X: Lower customer GHG emissions through

7,308

environmental product offerings and applications
Y: NSHD Group GHG emission (Scope 1＋2)

Social5,868＜Safety Management＞
1.56

≤1.6

● Rate of female employees

19.9%

≥22%

● Rate of female management posts

14.5%

≥18%

99.7%

100%

● Lost Time Injury Rate

＜HR＞

Governance＜Compliance＞● Rate of receiving compliance training*2*1 The figure for the volume of GHG emissions for FYE2019, which is the reference value, calculates the actual GHG emissions in FYE2019 plus the following:1) estimated emissions in the European segment in FYE2019 and 2) estimated emissions of the U.S. HyCO business in FYE2019. and 3) Others*2 We began data collection from the previous fiscal year; FYE2023.

8

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

1. Strategic overview

Material balance & Environmental contribution
Draft underconsideration

Input

OutputEnergy and resource inputs in business activities

Environmentally hazardous substances generated by business activities

1%
19%

Business activities

24%

Raw material

GHG
emissions

Energy5,868

13,945 GWh

Air

Electic power

Fuels

thousands of tonnes CO2e

Heat

Scope175%

Wastewater

5% 0.0%Natural gas

Water
By-productgas(CO2 raw material)

44 millions of m

41%

28 millions of m

Waste emissions

15,392 tonnes

Waste disposed of as landfill

5,052 tonnes

33

Surface water
Water supply from local government

54%

Groundwater

GHG emission reduction contribution
Total

7,308 thousands of tonnes CO e

Products & services

3,556 thousands of tonnes CO e
3,752 thousands of tonnes CO e

Other

Industrial gases(Note) For details on the reporting data, please refer to P1, “Sustainability Data” in our Integrated Report 2023.

9

Scope281%

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

2

2

2

1. Strategic overview

R＆D investments unleash Gas Opportunities
By quickly understanding customer needs and expectations, our group's R&D capabilities are continually enhanced with thesupport of each region’s R&D center. In the realm of Carbon Neutrality and Electronics, we actively engage in strategic
alliances and collaborations to address our customers' challenges effectively and provide innovative solutions.
Our Group’s R&D centers
As of September 30, 2023

EuropeJapan

The U.S.

5

1● Collaboration with Sarralle :Combining the Company‘s knowledge of hydrogen combustion (hydrogen burners) inindustrial furnaces with our own oxygen combustion technology, the world’s first advanced
technology that uses only green hydrogen as fuel in the steelmaking process was introduced,
along with ladle preheating equipment from ArcelorMittal, a global leading steel company.

＆

AO（Asia & Oceania）

bases● Yamanashi Technology
Solution Center● Tsukuba Laboratory● Plant Engineering Center● SI (Stable Isotope) Innovation Center● Medical Technical Service Centerbase● Advanced Technology Center● Groupwide R&D functions are primarily located in Japan and the U.S.
● Found on R&D applications and initiatives in line with market demandand customer requirements

10

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results● R&D of high-purity Gases & Equipment for the electronics industry （U.S.: Advanced Technology Center）

1. Strategic overview

Digital Transformation (DX)Using Digitalization to advance and improve our key focused fields: Total Electronics, Operational Excellence, Sustainability,
and Carbon Neutrality.
Industrial Gas business domain
Japan

Marketing

Safety support

Electronics business domain
Japan

Safety support

Inventory management

Expansion of digital content

Maintenance

Remote monitoring

In-house transportation

Next Generation Gas Supply Support System

Online video subscription service
on the Safety Training for handling high-compressed gases

1

2

Daily Inspection
Support Tool

CylinderManagement Database
SystemGas Handling Know-how（Our invisible assets）

X

Digital technology（Power of Digital）

IGSS : Intelligent Gas Supplying System

U.S

Plant operation

Energy efficiency

3

4

5

Wireless-operated
cylinder cabinet

Operation
recorderHigh Performance
Monitoring System

Centralized control

Data-driven power management
and operational efficiency improvement

Production

Logistics

6

7

Equipment
Automated Cylinder
Maintenance System
Delivery System

Centralized
DX

Power

11

Conceptual diagram of the IGSS system

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

1. Strategic overview

Key CAPEX for our sustainable growth
Significant investment opportunities; diversified capital portfolio; aligned with our NS Vision 2026.

（色使いの関係で、Q

左記ドーナツチャート

7%“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

Industrial

19%
37%

FYE2024（as of the end of Q2）2%

Of which Environmental &Hydrogen society contribution related
Approx.

60%“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
ByJV）
Industry（HyCO Plant, and Green hydrogen

35%
Steel & Metals

Electronics

Healthcare

Industrial

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.

12

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

Others1. Strategic overview

Summary : Progress toward Financial targets
Steadily implement strategies to achieve the profitability targets outlined in the final year of NS Vision 2026.

Keep eye out
demand trends

Draft underconsideration

Uncertain economic environment continues: Geopolitical risks, fluctuations in currency rates, inflation,and energy prices
Slow recovery in semiconductor industry: Continue to closely watch the operating conditions ofour major customers in East Asia
Business confidence remains muted

Emphasize and communicate the value of our products to our customers through effective marketing

Continueright operation

Optimize the operating structure and business portfolioe.g.) Business integration between Astomos Retailing and our home use LP gas business subsidiary in Japan(scheduled in January 2024), etc.

Expand our technological fields by working with customers and partners who aim to realize a CN*1 society

Find business
opportunities*1 CN： Carbon Neutral

Actively market innovative products created with our own technologiese.g.) Water-18O production, Compound semiconductor equipment (MOCVD*2 equipment), etc.
*2 MOCVD： Metal Organic Chemical Vapor Deposition（Crystal growth method using organometal and gases as raw materials）

13

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

2. Integrated Report

14

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

2. Integrated Report

Improving to fruitful report for our stakeholders
Production process for 2023 edition

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

Issuing the Report

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

Close Communication & Good Collaboration

NSHD Integrated Report 2023
（Released on September 26, 2023.）
Please jump to the access webpage.> Link.

15

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

NSHD group companies(Japan/the U.S./Europe/Asia & Oceania/Thermos)

3. Q2 FYE2024
Business performance-1. Q2 Quarter Period performance

16

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

3. Q2 FYE2024 Business performance -1. Q2 Quarter Period performance

Consolidated results（Unit: ￥ bn.）

FYE2023

FYE2024

Q2

Q2(Jul.-Sep.)(Jul.-Sep.)

YoY
Difference％ Changeexc. FX

Revenue

297.6

303.6

+6.0

+2.0%

-2.7%

Core operating income

25.9

40.9

+15.0

+57.9%+50.3%

8.7%

13.5%

Non-recurring profit and loss

0.4

-0.0

-0.4

Operating income（ IFRS）

26.3

40.8

+14.5

8.9%
17.6%

13.5%
22.6%

-2.2

-5.5

-3.3

Income before income taxes
Income tax expenses

24.1

35.3

+11.2

5.6

10.4

+4.8

Net income

18.4

24.8

+6.4

+34.8%

17.8

23.9

+6.1

+34.3%

6.0%

7.9%

0.5

0.9

Core OI margin

OI margin
EBITDA margin

Finance costs+54.8%+46.6%(Attribution of net income)Net incom e attributable to owners of the parent

NI margin
Net income attributable to non-controlling interests

17％ Change

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results+0.4

3. Q2 FYE2024 Business performance -1. Q2 Quarter Period performance

Japan
YoY
FYE2023

FYE2024

Q2

Q2(Jul.- Sep.)(Jul.- Sep.)（Unit: ￥ bn.）

Difference% Changeexc. FX

Revenue

99.2

94.5

-4.7

-4.7%

-4.8%

Segment income

6.7

10.0

+3.3

+50.3%+50.2%

Segment OI margin

6.8%

10.7%

EBITDA margin

11.5%

15.4%

YoY Factors for increase/decrease in this quarterly period and other comment
・ Lower shipment volumes of core products such as air separation gases and LP gas
・ Sales price revisions due to rising costs
・ Soft shipment volumes of specialty gases
・ Firm electronics-related equipment and installation sales
・ Reorganized a consolidated on-site business subsidiary to joint operation structure18% Change

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

3. Q2 FYE2024 Business performance -1. Q2 Quarter Period performance

United States
YoY（Unit: ￥ bn.）

FYE2023

FYE2024

Q2

Q2(Jul.- Sep.)(Jul.- Sep.)% Change
Difference

exc. FX

Revenue

77.0

87.4

+10.4

+13.5%+8.5%

Segment income

6.7

12.2

+5.5

+81.5%+76.2%

Segment OI margin

8.8%

14.0%

EBITDA margin

22.4%

26.4%

YoY Factors for increase/decrease in this quarterly period and other comment
・ Lower shipment volumes of core products such as air separation gases
・ Sales price revisions due to rising costs and other factors
・ In equipment and installation, both industrial gas and electronics-related sales increased19% Change

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

3. Q2 FYE2024 Business performance -1. Q2 Quarter Period performance

EuropeYoY（Unit: ￥ bn.）

FYE2023

FYE2024

Q2

Q2(Jul.- Sep.)(Jul.- Sep.)

Difference% Changeexc. FX

Revenue

71.3

74.2

+2.9

+4.1%

-8.0%

Segment income

7.0

13.2

+6.2

+86.3%+64.4%

Segment OI margin

9.9%

17.8%

EBITDA margin

21.8%

30.6%

YoY Factors for increase/decrease in this quarterly period and other comment
・ Lower shipment volumes of core products such as air separation gases
・ Revision of sales prices due to falling energy prices
・ Strong sales of gas-related and homecare-related equipment
・ Productivity initiatives contributed to solid business performance20% Change

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

3. Q2 FYE2024 Business performance -1. Q2 Quarter Period performance

Asia & Oceania
YoY（Unit: ￥ bn.）

FYE2023

FYE2024

Q2

Q2(Jul.- Sep.)(Jul.- Sep.)% Change
Difference

exc. FX

Revenue

42.5

39.6

-2.9

-6.8%

-9.7%

Segment income

4.3

4.4

+0.1

+2.6%

+0.7%

Segment OI margin

10.2%

11.2%

EBITDA margin

15.6%

17.6%

YoY Factors for increase/decrease in this quarterly period and other comment
・ Soft shipment volumes of core products such as air separation gases
・ Sales price revisions due to rising costs and other factors
・ Sales volume was soft In LP gas, of which a large portion of sales are in the Australia region
・ In the electronics-related business, softness in both gas and equipment as a result of inventory adjustments
and postponement of capital investment due to customer's demand21% Change

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

3. Q2 FYE2024 Business performance -1. Q2 Quarter Period performance

Thermos
YoY（Unit: ￥ bn.）

FYE2023

FYE2024

Q2

Q2(Jul.- Sep.)(Jul.- Sep.)

Difference% Changeexc. FX

Revenue

7.4

7.7

+0.3

+3.4%

+2.5%

Segment income

1.3

1.4

+0.1

+7.0%

+3.6%

Segment OI margin

18.0%

18.6%

EBITDA margin

22.9%

23.6%

YoY Factors for increase/decrease in this quarterly period and other comment
・ In Japan, the revenue from the Sports bottles and others was firm
・ Overseas, revenues were generally soft・ Production costs increased mainly due to the weak JPY

22% Change

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

3. Q2 FYE2024
Business performance-2. First half Cumulative performance

23

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

3. Q2 FYE2024 Business performance -2. First half Cumulative performance

Consolidated results（Unit: ￥ bn.）

FYE2023

FYE2024

1H

1H(Apr.- Sep.)(Apr.- Sep.)

YoY
Difference％ Changeexc. FX

Revenue

573.6

612.5

+38.9

+6.8%

+2.2%

Core operating income

56.1

81.6

+25.5

+45.3%+37.9%

9.8%

13.3%

Non-recurring profit and loss

-2.3

-0.0

+2.3

Operating income（ IFRS）

53.8

81.5

+27.7

9.4%
18.9%

13.3%
22.3%

Finance costs

-4.2

-10.0

-5.8

Income before income taxes
Income tax expenses

49.6

71.5

+21.9

13.2

21.1

+7.9

Net income

36.4

50.4

+14.0

+38.5%

35.1

48.5

+13.4

+38.1%

6.1%

7.9%

1.2

1.8

Core OI margin

OI margin
EBITDA margin+51.4%+44.1%(Attribution of net income)Net incom e attributable to owners of the parent

NI margin
Net income attributable to non-controlling interests

24％ Change

Forex （Unit: JPY ）USD

135.30142.61(average rate during the period)

EUR

139.14154.81

AUD

93.51

93.44

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results+0.6

3. Q2 FYE2024 Business performance -2. First half Cumulative performanceJapan

By Industry
Cumulative period basis

11%
20%

（Unit: ￥ bn.）

FYE2023

FYE2024

1H

1H(Apr.- Sep.)(Apr.- Sep.)

Automobiles & Other
transportation
Electronics% Change
Difference% Change

4%

Steel & Metals

YoY
exc. FX

Food & Beverage
Healthcare

Revenue

194.4

202.1

+7.7

+4.0%

+4.0%
24%

29%

Chemicals & Energy
OthersSegment income
Segment OI margin

12.7

21.3

6.5%

10.6%

+8.6

+67.7%+67.4%
10%

2%

By Product
Cumulative period basis

EBITDA margin

11.4%

15.1%
34%
Gases

Equipment andinstallation, other

66%

25

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

3. Q2 FYE2024 Business performance -2. First half Cumulative performance

United States

By Industry
Cumulative period basis

8%

YoY

（Unit: ￥ bn.）

FYE2023

FYE2024

1H

1H(Apr.- Sep.)(Apr.- Sep.)% Change
Difference% Change

10%

Steel & Metals
Automobiles & Other
transportation
Electronics

41%

exc. FX

7%

Food & Beverage
Healthcare

Revenue

145.9

169.5

+23.6

+16.1%+10.2%

Chemicals & Energy

14%

OthersSegment income

16.0

23.4

+7.4

+45.8%+38.1%
13%

Segment OI margin

11.0%

7%

By Product13.8%

Cumulative period basis

EBITDA margin

24.9%

26.4%

26%

Gases

Equipment andinstallation, other

74%

26

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

3. Q2 FYE2024 Business performance -2. First half Cumulative performance

EuropeBy Industry
Cumulative period basis

17%（Unit: ￥ bn.）

FYE2023

FYE2024

1H

1H(Apr.- Sep.)(Apr.- Sep.)

Steel & Metals

30%

YoY

% Change
Difference% Change1%

Automobiles & Other
transportation
Electronics

exc. FX

2%

Food & Beverage
Healthcare

Revenue

136.3

147.3

+11.0

+8.1%

-2.8%

19%

Chemicals & Energy
OthersSegment income

15.9

26.3

+10.4

+65.7%+48.6%

20%
11%

Segment OI margin

11.7%

By Product17.9%

Cumulative period basis

EBITDA margin

24.1%

30.5%

10%

Gases

Equipment andinstallation, other

90%

27

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

3. Q2 FYE2024 Business performance -2. First half Cumulative performance

Asia & Oceania

By Industry
Cumulative period basis

3%

5%

22%
Steel & Metals

YoY（Unit: ￥ bn.）

FYE2023

FYE2024

1H

1H(Apr.- Sep.)(Apr.- Sep.)

Automobiles & Other
transportation
Electronics% Change
Difference% Changeexc. FX

Food & Beverage
38%
Healthcare

Revenue

81.8

78.1

-3.7

-4.5%

-7.1%

Chemicals & Energy
27%

Segment income

8.9

8.5

-0.4

-4.2%

Others

-6.0%
3%

Segment OI margin

10.9%

2%

By Product11.0%

Cumulative period basis

EBITDA margin

16.5%

17.3%

13%

Gases

Equipment andinstallation, other

87%

28

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

3. Q2 FYE2024 Business performance -2. First half Cumulative performance

Thermos

By Region
Cumulative period basis

14%

YoY

（Unit: ￥ bn.）

Revenue

FYE2023

FYE2024

1H

1H(Apr.- Sep.)(Apr.- Sep.)

15.1% Change
Difference

15.3% Changeexc. FX

Japan

Asia

+0.2

+1.1%

+0.4%
86%

Segment income

29

3.3

2.8

Segment OI margin

21.8%

18.7%

EBITDA margin

26.5%

23.7%

-0.5

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results-13.3%-16.2%

4. FYE2024 Full-term forecast

30

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

4. FYE2024 Full-term forecast

Consolidated forecast
FYE2023

YoY

FYE2024

Full-term

Full-term forecast

Difference

FYE2024 Full-term％ Change％ Changeexc. FX(Announced on October 31, 2023)（Unit: ￥ bn.）

forecast (previous)(Announced on May 11, 2023)

1,186.6

1,230.0

+43.4

+3.7%

-0.1%

1,160.0

123.1

155.0

+31.9

+25.9%+20.4%

127.5

10.4%

12.6%

Non-recurring profit and loss

-3.5

8.0

+11.5

Operating income（ IFRS）

119.5

163.0

+43.5

OI margin

10.1%

13.3%

11.0%

EBITDA margin

19.3%

21.6%

20.2%

-14.0

-24.0

-10.0

105.5

139.0

+33.5

Income tax expenses

29.5

38.5

+9.0

Net income

75.9

100.5

+24.6

+32.3%

73.5

73.0

97.0

+24.0

+32.7%

70.5

6.2%

7.9%

2.8

3.5

RevenueCore operating income
Core OI margin

Finance costs
Income before income taxes

11.0%

－

+36.4%

127.5

-25.5

+31.7%

102.0
28.5(Attribution of net income)Net incom e attributable to owners of the parent

NI margin
Net income attributable to non-controlling interests

6.1%

+0.7

Forex （Unit: JPY ）USD

136.00142.61130(average rate during the period)

EUR

141.62154.81

140

AUD

92.67

93.44

93.5

Total Forex impact for FYE2024 Full-term forecast : Positive impacts of ￥44.9 bn. on revenue and ￥5.6 bn. on core operating income.

31

3.0

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

Q&A Session

Representative Director,
President CEO
Toshihiko Hamada

Senior Executive Officer,
Group Finance &Accounting Office,and CFO

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

Tsutomu Moroishi（Chief Sustainability Officer）

Alan Draper
Takeshi Miki

33

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

General Manager,
Investor relations,Group Finance &Accounting Office

General Manager,
Accounting,Group Finance &Accounting Office

Keita Kajiyama

Takashi YoshidaAppendix

34

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

NIPPON SANSO Holdings Group Summary

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

Published on October 31, 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

TickerIndustrial Gas business4091.T

Distribution by share holders (%)

Japanese Indivisuals and others

Mitsubishi Chemical Group 50.6

0%

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

10%

Foreign Institutions and Individuals

20%

30%

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）
13%

3%

7%

35%

23%

0.4%
32%

22%

19,579¥1,186.6bn.

people

15%

35

US

Revenue¥1,230.0 bn.

Operating income¥163.0 bn.

23%

26%
Japan

FYE2024 Financial Forecast（IFRS)EuropeAsia & Oceania

Thermos

Corporate

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

Net income attributable toowners of the parent

EPS¥97.0 bn.
¥224.09

Our Medium-term management plan Summary

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

Published on October 31, 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
EBITDA margin\125.0-135.0 bn.
Group:

24%
0%

10%

≥24 %

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

27%
20%

30%

Japan

US

40%

Europe

10%

20%

30%

Base/Underlying

Non-Financial target

Focused fields＜Environment＞
Reduction rate of GHG emissions

FYE2026:

18 %(Base year: FYE2019)

FYE2031:

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

FYE2026:100 %FYE2026:≥22 %FYE2031:25 %FYE2026:≥18 %FYE2031:

22 %＜Compliance＞＜HR＞

Rate of female management posts

36

70%

80%

90%

100%

Strategic (beyond regions)

37%

45%
0%

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

60%

Thermos

9%

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

50%

Asia & Oceania

2%≤0.7 times

ROCE after Tax

Lost Time Injury Rate

14%

24%

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

40%

50%

Growth initiatives

60%

12%
70%

Strategic initiatives

80%

M&A

90%

6%
100%

Non-recurring items
Non-recurring items are costs of structural reform (cost for withdrawal or downsizing business operations and special retirement allowances),
losses caused by disasters or serious accidents, and other gains and expenses (such as disposal of idling assets).
Core operating income is calculated as operating income excluding certain gains and expenses attributable to non-recurring items in the Company.
FYE2023
1H

FYE2024
1H

YoY
Difference（Unit: ￥ bn.）

Core operating income

56.1

81.6

+25.5

Non-recurring profit and loss

-2.3

-0.0

+2.3

Operating income（ IFRS）

53.8

81.5

+27.7

Items（Unit：￥ bn.）
FYE2023 1H result
Item

37

FYE2024 1H result
AmountItem

Arbitration of Leasing facilities dispute (U.S.), etc.

-2.9 Total

Gain on sales of overseas land (Asia & Oceaia)

0.5

Total

-2.3

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

Amount-0.0

Key performance indicators
Item

38

FYE2023
1H

Unit

FYE2024
1H

FYE2023
Full-term

Basic earnings per share

JPY

81.22

112.16168.85

Overseas sales ratio

％

64.4

65.5

63.0

ROE

％

-

-

10.8

ROCE

％

-

-

7.6

ROCE after Tax

％

-

-

5.4

Annual dividends per share

JPY

-

-

38

Dividend payout ratio

％

-

-

22.5

CAPEX(fund basis) & Investments and loans

\bn.

44.3

55.0

94.7

Depreciation and amortization

\bn.

52.0

54.8

105.7

Free cash flow

\bn.

29.8

32.3

89.8

Adjusted net D/E ratio

Times

0.88

0.72

0.81

Interest-bearing liabilities

\bn.

964.4

1,045.5

941.7

Net interest-bearing liabilities

\bn.

863.4

828.4

809.5

-

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results（Reference）Preconditions, Definition & Calculations of our KPIs
Glossary

Preconditions and Definitions in this Presentation

Core operating income

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

Interest-bearing debt

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

Hybrid finance

A form of debt financing that has features resembling equity, such as voluntary deferral of interest, extremely long-term redemption periods and subordination
during liquidation or bankruptcy procedures.
This kind of financing does not cause stock dilution, and a certain ratio of the funds procured in this way can be recognized as equity credit by rating
agencies provided that certain conditions are met.

Equity-type debt

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

Indicator

Calculations used in this presentation

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

ROE

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

ROCE

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

ROCE after Tax

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

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

39

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

Condensed consolidated statements of Cash flows（Unit：￥ bn.）

40

FYE2023

FYE2024

1H

1H

YoY
Difference% Change

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

49.6
52.0
-15.1
-14.3

71.5
54.8
-27.4
-10.9

+21.9
+2.8
-12.3
+3.4

+44.1%Cash flows from operating activities

72.1

87.9

+15.8

+22.0%

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

-42.6
-1.7
2.1

-53.1
-1.8
-0.6

-10.5
-0.1
-2.7

Cash flows from investing activities

-42.2

-55.6

-13.4

+31.8%

Free cash flow

29.8

32.3

+2.5

+8.2%

Cash flows from financing activities

-25.4

44.7

+70.1

-

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

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

FYE2023

FYE2024

YoY

FYE2023

FYE2024

YoY

Q4

Q2

Difference

Q4

Q2

Difference

Cash and cash equivalents

132.2

217.0

+84.8

Trade payables

128.1

120.5

-7.6

Trade receivables

243.5

260.7

+17.2

Interest-bearing liabilities

941.7

1,045.5+103.8Inventories

97.6

108.6

+11.0

Others

330.9

371.9

+41.0

Others

53.7

73.6

+19.9

1,400.9

1,538.1+137.2

527.0

660.0

+133.0Share capital and capital surplus, etc

626.5

666.3

+39.8

Property, plant and equipment

776.1

835.3

+59.2

Other components of equity

97.7

186.4

+88.7

Goodw ill

513.6

561.2

+47.6

Equity attributable to

Intangible assets

242.3

254.1

+11.8

owners of parent

724.3

852.7

+128.4

Others

99.7

115.1

+15.4

Non-controlling interests

33.6

35.1

+1.5

Total non-current assets

1,631.8

1,765.8+134.0Total equity

757.9

887.8

+129.9Total assets

2,158.9

2,425.9+267.0Total liabilities and equity

2,158.9

2,425.9+267.0Total current assets

Total liabilities

Note that foreign exchange rates resulted in an increase in both total assets and total liabilities and equity of approximately ¥159.2 billion. This mainly reflected foreign exchange rate changes,
such as the JPY depreciation of ¥16.05 against the USD and the JPY depreciation of ¥12.28 against the EUR as of September 30, 2023, compared with the rates as of March 31, 2023.

41

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

Results overview by Segment
FYE2024

FYE2023（Unit: ￥ bn.）Japan

United States

EuropeAsia & Oceania

Thermos

42(Apr.- Sep.)(Apr.- Sep.)

Segment OI
Segment OI margin

6.5%

10.6%

Revenue
Segment OI

145.9
16.0

169.5
23.4

Segment OI margin

11.0%

13.8%

Revenue
Segment OI

136.3
15.9

147.3
26.3

Segment OI margin

11.7%

17.9%

Revenue
Segment OI

81.8
8.9

78.1
8.5

Segment OI margin

10.9%

11.0%

Revenue
Segment OI

15.1
3.3

15.3
2.8

Segment OI margin

21.8%

18.7%

0.0
-0.7

0.0
-0.9

Core OI

573.6
56.1

612.5
81.6

Core OI margin

9.8%

13.3%

Segment OI

Revenue

Consolidated total

1H

202.1
21.3

Revenue

Adjustment

Composition
ratio

1H

194.4
12.7

Revenue

YoY

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

33.0%
26.1%

27.7%
28.7%

24.1%
32.3%

12.8%
10.5%

2.5%
3.5%

0.0%
-1.1%

100.0%
100.0%

DifferenceWork in Progress% Change

Forex impact% Changeexc. FX

+7.7
+8.6

+4.0%
+67.7%

+0.0
+0.0

+4.0%
+67.4%+23.6+7.4+16.1%+45.8%+7.8+0.8+10.2%+38.1%

+11.0
+10.4

+8.1%
+65.7%

+15.3
+1.8

-2.8%
+48.6%

-3.7
-0.4

-4.5%
-4.2%

+2.3
+0.1

-7.1%
-6.0%

+0.2
-0.5

+1.1%
-13.3%

+0.0
+0.1

+0.4%
-16.2%

-0.0
-0.2

―
―

+38.9
+25.5

+6.8%
+45.3%

―
―
+25.7
+3.0

+2.2%
+37.9%

Revenue composition
As of 1/27 9AM
WIP(Charts by industry)

By Segment

By Industry

2%

11%

13%

5%

29%

33%

Q2
FYE2024Q2
FYE2024¥612.5bn.

24%¥597.1bn.
(exc. Thermos business)

9%

20%

28%
Japan

U.S.

EuropeAsia & Oceania

9%

Thermos

Steel & Metals

Automobiles & Other transportation

Electronics

Food & Beverage

Healthcare

Chemicals & Energy

Others43

17%October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

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

Revenue（¥ bn.）

Operating income（IFRS）

Profit attributableto owners of the parent（¥ bn.）

OI margin

1,186.6
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

44

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.

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results2019.32023.3Glossary: EBITDA margin／ROCE after Tax
EBITDA marginand EBITDA

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

21.2%

19.3%

174.1

173.6

2020.32021.3

195.1

228.8

121.9

2022.32023.3（Reference）

ROCE after Tax
and NOPAT（￥ bn.）

5.4%
4.5%

4.6%

4.4%

6.2%

45

6.4%

6.1%

6.8%

7.6%

4.8%

123.1

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.

（￥ bn.）ROCE and Core OI
ROCE

ROCE after Tax（Interest-bearing debt + Total equity attributable to owners of parent）** The average of the amounts at the end of the comparative fiscal year s of the previous and current fiscal years is used.

20.4%

16.5%

2019.3

ROCE after Tax

20.5%（￥ bn.）

47.9

2019.3

64.6

62.8

2020.32021.3October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

73.0

2022.3

87.4

90.3

87.2

2020.32021.3

102.7

65.8

2023.32019.32022.32023.3

Industrial gas supply systems
Air Separation Gases

Other Gases

Air Separation Unit

On-siteAir

Major supply destination（Sector）

Storage tank for liquid gases
Petrochemical

Steel
Oxygen Nitrogen
N2
O2

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

（Large-scale supply）

Supply via pipeline

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

Oxygen
O2

Bulk
CO2

Major supply destination（Sector）

NitrogenN2

Tank truck
Argon
Ar

Automobile

Shipbuilding

Construction
machinery

Pharmaceutical
MedicalManufacturing
Glass/Paper
Food/
beverage

LCP

Photovoltaics

Semiconductor

H2

He

Tank truck

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

Supply via Liquid gases form

（ Medium-scale supply）

Supply via Liquid gases form

Packaged
Filling station

Major supply destination（Sector）

Filling station
Flatbed truck

Advanced
medicine

HomecareEngineeringdevelopment

R&D

Sanitation

Flatbed truck

Construction/
Installation

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

Supply via Cylinder46（ Small-scale supply）

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 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.

47

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results

For further information, please contact:
Public Relations for media

Investor Relations for investors

Public Relations

Investor Relations

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

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

Upcoming IR eventsWeb IR Conference on Sustainability initiatives
Q3 FYE2024 Earnings Call

December 6, 2023
February 2, 2024

www.nipponsanso-hd.co.jp/en/
NIPPON SANSO Holdings Corporation (Ticker:4091.T)
Headquarters：1-3-26 Koyama Shinagawa-ku, Tokyo 142-0062, Japan48

October 31, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q2 results© 2023 NIPPON SANSO Holdings Corporation All rights reserved