NSHD
Working towards
a sustainable future.

Web IR Conferenceon Sustainability initiatives
December 6, 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

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Contents

1.

Sustainability Management Strategy

2.

Measures to achieve Non-financial KPI

3.

Business Opportunities in Carbon Neutrality

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.

3

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Opening remarks

4

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

1. Sustainability Management Strategy

5

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Enhancing Corporate value through Sustainability orientation
Our group’s Mid-term management plan (MTP)NS Vision 2026｜Enabling the Future

Apr. 2022

Oct. 2020

Mar. 2026

To a holding company structure(Trade name changed in accordance with change of structure)

Apr. 2015
CSO* appointed（* Chief sustainability Officer）

Feb. 2021
Establishment of corporate philosophy,
vision, code of conduct and policies

Formulated materiality
Dec. 2018
Acquisition of European
operations
Feb. 2019
Acquisition of U.S. HyCO
business
Nov. 2019
Started disclosing information
via website, etc., in support of
TCFD.
Jul. 2020
Started our independent
response to CDP
6Nov. 2021
Reinforcement of internal sustainability
management system(Group Sustainability Management Office established)

Dec. 2021
Updated our Materiality
Jan. 2022
Signed the United Nations Global Compact(UNGC)
Jun. 2021 and Jun. 2022
Review of Board composition

May 2022
2022年5月
MTP「NS Vision 2026」released
中期経営計画「NS Vision2026」発表●Launch of Eight non-financial programs●非財務8プログラムの設定、実行
１．CNP Ⅰ: Carbon Neutral Program I
１．CNP
CarbonNeutralProgram
２．CNP
Ⅱ:Ⅰ:
CarbonNeutralProgram
Ⅱ I
２．CNP
Ⅱ:
CarbonNeutralProgramⅡ
３．ZWP: Zero Waste Program
３．ZWP:Zero
Waste
Program
４．SWP: Sustainable Water Program
４．SWP:Safety
Sustainable
Water Program
５．SFP:First Program
５．SFP:
SafetyFirst
Program
６．QRP: Quality Reliability Program
６．QRP:Talent
Quality
Reliability
Program
７．TDP:
Diversity
Program
７．TDP:
TalentDiversity
Program
８．CPP: Compliance Penetration Program
８．CPP: Compliance Penetration Program●Establishment and disclosure of●非財務KPI（後述）の設定、開示
non-financial
KPI (see following pages)●●TCFDシナリオ分析結果公表
Publication of TCFD Scenario Analysis Results

Jul. 2023
Launch of Sustainable Development Committee

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Laying the foundation for Sustainability Management
Our Group's Philosophy System(established in Feb. 2021)

Philosophy

VisionCode of Conduct

Proactive. Innovative. Collaborative.
Making life better through gas technology.
The Gas Professionals
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.
The contents of the Charter of Corporate Behavior (Keidanren) are largely
covered in our Code of Conduct. Therefore, rather than establishing a new"Charter of Corporate Behavior," we have reviewed the current Code of Conduct,
taking into account recent social trends.

12 policies developed for disclosure

PolicyEach operating company will formulate action guidelines,
values, etc. as appropriate.

7・Anti Corruption Policy
・Environmental Policy
・Occupational Safety and Health/Industrial Safety and Disaster
Prevention Policy
・Product Safety and Quality Policy・Intellectual Property Policy
・Procurement Policy

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

・Global Policy on Respecting Human Rights,
Contributing to Communities, Employment,
Labor and Health・Global Competition Law Compliance Policy
・Global Tax Policy
・Investor Relations (IR) Policy
・Information Security Policy・Internal Audit PolicyTo operate as a unified group
Major Non-financial matters & agendas
for reporting and consideration in the Board of Directors (FYE2023)

Sustainability Management and Operating Structure
Nine Directors,

Board of Directors（ five are outside directors ）・Development of Non-financial KPI・CDP response policy
・Non-financial KPI-linked bonuses
for Officers

・Non-financial program progressof each operating company
・Risk management for global
environment issues

Group companies Close collaborative relationship
Reporting【Japan】
Taiyo Nippon Sanso Group

Supervision【US】

Representative Director, President CEO

Matheson Tri-Gas GroupManagement Committee（Once a month in principle）* Once a year in principle

The committee deliberates and makes decisions onimportant matters related to the execution of duties by
the Representative Director, President CEO.

Global Strategy Review Committee*

ReportingGlobal Risk Management Committee*【Europe】

NSHD

Nippon Gases
Euro-Holding GroupCSO & GSMO
Group Sustainability
Management Office(GSMO)

Global Compliance Committee*【Asia & Oceania】

CSO

Asia and Oceania region
business company group

Sustainable Development Committee
Technological Risk Liaison Committee
Meeting between NSHD and each operating company todetermine specific measures to be taken

Japan / US / Europe / Asia & Oceania / Thermos

8

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives【Thermos】
Thermos Group
Collaboration

Implement the five focused fields
Our Medium-Term Management Plan

NS Vision 2026

Slogan: Enabling the Future
2. Measures to achieve
Non-financial KPI
Explainer:

Toshifumi Abe, General Manager
Sustainability Management,Group Sustainability Management Office,
NIPPON SANSO Holdings Corporation

3. Business Opportunities
in Carbon Neutrality
Explainer:

Tomoki Nakamura, General Manager
Corporate Planning,Group Corporate Planning Office
NIPPON SANSO Holdings Corporation

9

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Our Medium-Term Management Plan

Eight Non-financial programs ＆ NS Vision 2026 Non-financial KPI
Non-Financial Programs

Carbon Neutral ProgramⅠ
Reduce the Group’s GHG emissions

Non-Financial KPIs

NS Vision 2026
Final-Year Targets(FYE2026)

FYE2023 Results

Reduction rate of GHG emissions *¹

18%

12.3%

Lower customer GHG emissions through

Carbon Neutral ProgramⅡE

environmental product offerings and7,308＞
5,868,000 t-CO₂e

Reduce customer GHG emissions
through environmental productofferings and applications

Lower customer GHG emissions

Sustainable Water Program

Reduction rate of water withdrawals
intensity, etc.

--

Reduction rate of waste disposal
intensity, etc.

-

-

≦1.6

1.56

-

-

Rate of female employees

≧22％

19.9%

Rate of female management posts

≧18％

14.5%

Rate of receiving compliancetraining

100%

99.7%

Effective use of water resources

Zero Waste Program
Reduction in waste emissions

Safety First Program
Reduction in lost time indury rateapplications > NSHD Group GHG
emissions

Lost time injury rate *²

Quality Reliability Program

S

Reduction in number of claims about products, offerings andapplications

Talent Diversity Program
Utilization of diverse talentG

Compliance Penetration Program
Compliance education and enforcement

Number of product complaints, etc.

*1 Reduction targets for a fiscal year are set with reference to the base year of FYE2019, with figures adjusted to reflect the acquisition of the European industrial gases business.
*2 This is an indicator that represents the frequency of occupational accidents. It is calculated as the number of employees injured in accidents that resulted in lost work time,
divided by the total number of work hours, multiplied by one million hours.

10

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Relationship between Materiality ＆ Eight Non-financial programs
Materiality（24 items）
related to the global environment

Preconditions for
the Enterprise Existence

Extremely high（8 items）
Very high（9 items）
High（4 items）

Corporate Ethics（CPP）

Importance to stakeholders

Safety & Security（SFP）

related to the Company and its organizational structure> Strengthening communication
with stakeholders> Sustainable supply chain(QRP)> Contribution to regional &industrial development associal infrastructure> Diversity ＆inclusion(TDP)（３items）

Respect for
Human Rights（UNGC）

related to social systems> Conservation of water
resources (SWP)> Coexistence with local
communities> Pursuit of customer
satisfaction(QRP)> Technology and R&D
capabilities that support thecreation of customer value &social value> Promotion of initiatives for digital
innovation> Employee and family health> Conservation of biodiversity> Protection and effective
utilization of intellectual
property> Product and service safety andquality(SFP)> Providing products and services
that contribute to resolving
environmental and social issues(CNP Ⅱ)> Climate change mitigation andadaptation (CNP Ⅰ／TCFD)> Effective use of resources andprevention of pollution(ZWP／SWP)> Strengthening information security
measures> Improvement of productivity andpromotion of production optimization> Development and maintenance ofhuman resources (TDP)

１．CNP Ⅰ: Carbon Neutral Program I
２．CNP Ⅱ: Carbon Neutral Program Ⅱ
３．ZWP:

Zero Waste Program

４．SWP:

Sustainable Water Program

５．SFP:

Safety First Program

６．QRP:

Quality Reliability Program

７．TDP:

Talent Diversity Program

８．CPP:

Compliance Penetration Program（Supplementary information）> Improvement of employee
engagement> Provision of comfortable andprosperous lifestyles

UNGC：

United Nations Global Compact

TCFD：

Task Force on Climate-Related
Financial Disclosures

High（4 items）

Very high（8 items）

Extremely high（9 items）

Importance to NSHD
* This materiality is an updated version of the 2015 version, which was reviewed internally and approved by the Company's Board of Directors in Dec. 2021.

11●Eight Non-financial programs

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Non-financial related external evaluations（FTSE／MSCI）
FTSE Russell’s ESG Ratings

MSCI

4.5

AAA

4.0

AA

3.5

A

3.5
3.0

3.2
3.0

BBB

2.5
2.0

2.2

BB

BB

2.0

BBB

1.5

B

B

B

B

1.0

CCC

0.5

0.0
2019
NSHD

2020
Competitor A

2021
Competitor B

2022
Competitor C

Competitor D

2023

2019

2020

MCG

➢ Selected as constituent for “FTSE4Good Index Series”, “FTSE Blossom Japan Index”
and “MSCI Japan Empowering Women (WIN) Select Index”➢ Acquired “Star 4” in Nikkei SDGs Management Survey of FYE2023”* MCG：Mitsubishi Chemical Group Corporation（Mitsubishi Chemical Holdings Corporation changed of trade name to Mitsubishi Chemical Group Corporation effective on July 1, 2022）

12

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

2021

2022

2023

2. Measures to achieve Non-financial KPI

13December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

CNPⅠ: To reduce the Group's GHG emissions through our own efforts (1/2)（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
*Reduction targets for a fiscal year are set with reference to the base year of FYE2019, with figures adjusted to reflect the acquisitionof the European industrial gases business.

Scenarios for achieving goals●Composition of GHG emissions of our group (FYE2023）

19%

Further promotion of energy conservation & efficiencyof energy use - Reduced energy consumption

MainlyHyCO*-derived

Scope 1

Initiatives for CN

Scope 2Mainly81%

Our measures

Electricity-derived

Changes in power supply configuration arevery relevant to GHG emissions①Replacement 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- Green Electricity Procurement①Switch to electricity companies with low emissions coefficients②Purchase green power certificates③Introduce renewable energy

Estimates based on IEA emission factor projections

Carbon capture and offsets - Consideration of CCUS implementation

Source： IEA Carbon intensity of electricity generation in selected regionsin the Sustainable Development Scenario, 2000-2040①Promote CO2 capture②Carbon offset through new technology, forest conservation, and tree-planting activities, etc.

*HyCO stands for hydrogen (H2), carbon monoxide (CO), and syngas products.

14

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

CNPⅠ: To reduce the Group's GHG emissions through our own efforts (2/2)（Carbon Neutral Program I）《Initiatives》

Main factors of GHG Emission reduction
・Purchase green power certificates (Guarantee of Origin)
・Replacement of air separation units and reduction ofelectricity usage through digital solution technologies

Continuous initiatives for further reduction
・Expand above initiatives across the Group・Switch to electricity companies with low emissions
coefficients・Introduce renewable energy

15

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

CNPⅡ: To reduce GHG emissions of our customers through the promotion of our products (1/2)（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 from the perspective of global
environmental protection

16

Our measures

Contribution by 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)Technological evolution on the customer side

Expansion of the Group's contribution area

Drive toward carbon neutrality at our group's customers
Dramatic technological development and rapid replacementof existing technologies①Areas 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)

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

CNPⅡ: To reduce GHG emissions of our customers through the promotion of our products (2/2)（Carbon Neutral Program Ⅱ）《Results》

GHG emissions of NSHD group (Scope 1+2)
FYE2023： 5,868,000 t-CO2e

17

Contribution to GHG emission reduction
through products and services using the
NSHD Group’s proprietary technologies
•
•
•
•
•
•
•
•
•
•
•

Combustion-type exhaust gas abatement system
SF₆ recovery service
SCOPE-Jet®
MG Shield®
New refrigerants
Nitrogen gas supply system for laser processing (PSA)
Shuttle Chef®
Hydrogen station
Oxygen-enriched combustion in blast
Oxygen-enriched electric furnaces
Argon (Ar) welding

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

ZWP: To preserve the global environment（Zero Waste Program）

Zero Waste Program《Results》(Japan segment)

Aiming to reduce waste emissions
Following the 3R’s (Reduce, Reuse, Recycle) of waste
disposal is a necessary, and we will work on proper
management and recycling of waste to reduce
emissions and build a resource cycle.

＜ Initiatives in the Japan Segment＞
We started HALD (Halve Amount of Landfill Disposal) to halve
the amount of industrial waste generated by the Japan Segment for
landfill disposal by FYE2026.

18

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

SWP: To preserve the global environment（Sustainable Water Program ）Sustainable Water Program

Aiming to minimize water risk
Effective use of water resources is a must, and we aim toconserve water resources in our corporate activities
through efficient use of water.
Identify water risks and implement measures for high-risksites⚫ Conduct an annual water stress survey using Aqueduct,a water risk assessment tool developed by the World Resource
Institute, to identify production plants (ASU and HyCO plants)
in high-risk areas.
⚫ In production plants in high-risk areas, work to reduce water
withdrawal and consumption by increasing the amount of water
circulated, etc.
19

《Results》
Results of Water Stress Level Survey for all of NSHD’s
production sites (130 sites)
Upper level: Water usage (thousand m³), lower level: Number of applicable / production sites

Japan

US

EuropeAsia &
Oceania

Thermos

Total

High

Highmedium

MediumMediumlow

Low

0

0

1,814

4,756

434

(0/24)(0/24)(6/24)(15/24)(3/24)

833

355

1,579

598

4,931

(5/51)(3/51)(14/51)(5/51)(24/51)

783

24

8,876

252

14,900(7/29)(1/29)(8/29)(3/29)(10/29)

194

145

733

609

1,917

(4/24)(1/24)(5/24)(6/24)(8/24)

0

0

0

67

132

(0/2)

(0/2)

(0/2)

(1/2)

(1/2)

1,810

524

13,002

6,282

22,314(16/130)(5/130)(33/130)(30/130)(46/130)

・Data as of FYE2023
・Reporting boundary: Production sites with ASU, HyCO, or liquid carbon dioxide facilities
with annual water withdrawal of 20,000 m³ or more and Thermos

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

SFP: Ensure the safety of our workforce（Safety First Program）

Safety First Program

Aiming to be a global leader in the industrial
gas industry through safety《Results》
Lost-time injury rate*

3.00
2.32

*Lost-time injury rate expresses the frequency of accidents
resulting in lost workdays in a fiscal year, calculated as thenumber of injuries/deaths due to occupational accidents per
million work hours

2.51
2.20

2.14

2.00
Non-financial

KPI

FYE2026：Lost Time Injury Rate ≤ 1.6

Safety is the foundation of our company‘s existence, andin the spirit of “Selling gases is Selling safety.",
we will strive to maintain a safe and stable supply byfurther promoting safety.
＜Specific measures to achieve＞
・Share information on accidents, occupational injuries, and best practices
・Improve security capabilities through the use of smart security (DX, AI, IoT)
・Enhancement of safety education
・Utilize TNSC’s Technical Academies to foster safety culture and improve hazard sensitivity
・Promote investment in safety

20

1.56

1.00

0.00

（FYE）
Reporting boundary：Consolidated subsidiaries with production divisions inJapan and overseas
2019

2020

2021

2022

2023

The lost-time injury rate in FYE2023 decreased to 1.56 for the entire NSHD Groupand our efforts have improved the rate to a level that meets the target.
＜Lowering factors＞
・Strengthening safety patrol
・Thoroughgoing use of protective equipment
Continuously analyze the occurrence factor and make countermeasures to preventand promote the education to employees for risk control.

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

QRP: Improve the reliability of our quality（Quality Reliability Program）

Quality Reliability Program

Aiming to improve quality and reliability

Thoroughly promote awareness of the importance ofquality, further raise the awareness of operations
personnel, and promote the introduction of automatedtechnologies.

《Initiatives》
・We will promote a culture that emphasizes quality by keeping
our important promises to customers and strive to further
raise awareness among employees. We will also implement a
series of initiatives with the aim of increasing quality andreliability by promoting the introduction of LIMS*¹ and otherautomation technologies.
・We are currently focusing on the quality audit program*² being
undertaken by the entire NSHD Group since FYE2022.
*¹ Laboratory Information Management System*² Each operating company conducts a quality audit of their business sites once every three
years based on important audit items set by NSHD.

＜Specific measures to achieve＞
・Thorough training on quality ethics and compliance・Implementation of quality audit program
・Promote automation of testing, inspection, and analysis records, etc.
・Efforts to improve customer satisfaction through Semiconductor Specialty
Gas-Quality Committee (SSG-QC) activities

21

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

TDP: Toward Human Resource Development that Supports and Generates Sustainable Growth（Talent Diversity Program）

Female employee ration, Female managers ratio

25.0%

Talent Diversity Program
22.0%

Launched a strategy to develop
human resources for sustainable growth.
Non-financial

KPI

22.0%

19.9%
18.0%
14.5%

FYE2026：
FYE2031：
25%
Rate of female employees 22%
Rate of female management posts 18%
22%

Promote the recruitment, development, and exchange ofdiverse human resources essential for sustainable growth

FYE2023

FYE2026

FYE2031

Female employee ratio（Result）

Female managers ratio（Result）■■Medium-term goal

Major initiatives＜Specific measures to achieve＞
・To ensure the acceptance of a diverse workforce & ease of work.
・Promote cross-regional exchange of human resources①Established task-based global teams that span regions②Began to examine exchanging staff with operating companies
・Strengthen succession planning

22

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Japan

Launch of project on empowering womenUS

Strengthen activities in recruitment marketing

EuropePromote programs to train female candidates for top
management positions

Asia &
Oceania

Promote Unity in Diversity program (educational
activities for understanding different cultures,
empowering women)

CPP: Toward Human Resource Development that Supports and Generates Sustainable Growth（Compliance Penetration Program）

Compliance Penetration Program

Thoroughly adhere to the prerequisites(corporate ethics, safety and security, and respect for human rights)《Initiatives》
Conducted compliance training in each region and at each
operating company.

for maintaining corporate existence
Non-financial

KPI

FYE2026：
Rate of receiving compliance training 100%

Promote the establishment of compliance by spreadingawareness and acquiring correct knowledge of compliance【Compliance training in FYE2023】
・Compliance management
・Prevention of harassment
・Prevention of unfair competition
・Prevention of unfair business practices
・Code of conduct, internal whistleblowing system
Employee participation rate:＜Specific measures to achieve＞
・Continue compliance training in each region to disseminate
knowledge and corrective actions for all employees
・Prevention of compliance violations
・Detection of compliance violations through disseminationand operation of the internal reporting system

23

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

99.7% (FYE2023)

etc.

To enhance Corporate value through Communication➢ We engage in constructive dialogue with market participants based on the concept of fair disclosure.
➢ Attempt the enhancement of IR activities, learn from feedback and apply it in our business.
External communication

Internal communication⚫ Promote communication withcustomers and business partners
through the Group as a whole, basedon shared values and attitude.

⚫ To disseminate common values and attitudes,
the Integrated report prepared with thecooperation of each operating company was
redeveloped and relearned within the Group.

⚫ Execute appropriate initiatives anddisclosures that reflect carefuldialogue with external evaluation
agencies (FTSE, MSCI, etc.),
investors and analysts.

⚫ Operational Excellence Day
to share best practices at operating companies
in each region⚫ Hold IR conference on sustainability
initiative and have interviews about
ESG related themes.
⚫ Participate in IR event for individual
investors

24

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives(one of five key strategies: Operational Excellence)⚫ Share our missions and values through internal
communication (internal presentation meeting)about sustainability.

3. Business Opportunities in Carbon Neutrality

25

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Our Medium-Term Management Plan

NS 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 projects
2. Co-creation of value：Developing our own technologies while building collaborative relationships with partners with advanced technological capabilities

3. Strengthening “Communications” with all stakeholders（e.g.：Build a dedicated website as a tool for this purpose. > https://www.carbonneutralworld.com/ ）Contributing to CN by 2050 as an industrial gas supplier
Two important perspectives on the transition period of the next 30 years
Efficient Means of reducing environmental impact × Economic viability as a business

26

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Basic Policy and Promotion Structure
Integrated promotion system
to respond promptly to customer needs

Recognition of business environment and response stance⚫ All industries (steel, chemical, glass, cement, automotive, electronics, etc.) are
moving toward CN⚫ Each region has different methods and priorities for addressing CN⚫ 30-year transition period may cause a temporary swing or loss of momentum in CN
efforts due to war, epidemics, etc⚫ Economic and technological challenges make it difficult to build an ideal green
society in a single step.

⚫ 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.

Regional CN
Working Group（RCNWG）

Accomplish business solution in technology field in where NSHD
group would maximize our strengths
MarketNSHD
CN

Steering Committee（CNSC）CN Global
Executive Team
（Japan-US-Europe Mixed Team)

Head
Head

Combustion

HyCO

CO₂ Recovery

9

Japan

segments

CN Global
ExpertO₂ Production

Collaboration

Four technologies for contribution to CN

US(Oxy-fuel combustion)

Technology

Market27

・Flame temperature rise ・Hydrogen production
・Suppression of exhaustand supply on agaslarge scale
・Improve efficiency of・CO2 Capture (blueheat transferhydrogen)・CO2 capture,reuse and storage
from exhaust gas

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

Steel, Refineries,
Petrochemicals, Cement

Refineries,
Petrochemicals
Renewable fuels, Steel・Productivity
improvement
through efficientuse of oxygen

Any manufacturing
Industry that usesoxidation processes

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Technology

4

EuropefieldsAsia &
OceaniaIn-house technology development

Please check our
news release →Combustion field- World’s first successful trial demonstration of using fuel ammonia for combustion in a
glass melting furnace -⚫ Background• Japan has set a goal to become carbon neutral by 2050 and one of the issues in realizing thisis whether it can reduce CO₂ emissions in production processes in the materials industry (ex.
Glass manufacture) and developing an innovative glass melting technology that enables use of
a fuel with a light environmental burden is urgent.
• From 2021, AGC, TNSC, NEDO and Tohoku University are working jointly on technologicaldevelopment.

⚫ Results• In June 2023, the world first trial demonstration was carried out in the architectural glass
production facility at the AGC Yokohama Technical Center using Ammonia and TNSC’s
ammonia-oxygen burner.
• Tests were carried out under various conditions and compared with existing combustion
methods, and verification was made regarding the impact on glass quality and furnacematerials, flame temperature, furnace temperature, NOx suppression effects and more.

Glass Melting Furnace

Storage facility of liquefied ammonia

Natural gas 100% - flame of pure oxygen

Ammonia 100% - flame of pure oxygen⚫ Future Plans• Testing is planned to be carried out in scaled-up burners and through trial demonstrations inglass melting furnaces at other AGC bases to determine the scope that ammonia fueltechnology can be used, and aims are for fully-fledged introduction from fiscal 2026 onward.
• In the future, consideration will be given to deploying the technology in materials other thanglass, such as steel or aluminum, so that it can contribute to reducing greenhouse gas
emissions in production processes broadly across the materials industry.

28

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Business collaboration with another company

Please check our
news release →Combustion field- World’s first green hydrogen-fuelled ladle preheating station -⚫ Background• CO₂ emissions in steel industry are in abundant for blast furnace or other steelmaking furnace
and it is necessary to inject the technology for carbon neutrality.
• Nippon Gases Europe worked together with Sarralle (Spain). Developed world’s first greenhydrogen-fuelled ladle preheating station by combination of their knowledge and combustion
technology of TNSC.

⚫ Results• Provided this equipment to ArcelorMittal Sestao, one of the world leading steel company.
• Showed in results that this ladle preheating station is capable of running entirely on greenhydrogen and all usual required temperatures are reached.

⚫ Future Plans• Use of green hydrogen in steelmaking process would contribute to customers’ carbon neutrality.
This technology is not only for ladle preheating station but in others by customizing its technology
depends on the use.

29

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Quick Wins, case example- Matheson signs oxygen supply contract for 1PointFive’s DAC Plant -Please check our
news release →O₂ Production field⚫ Matheson Tri-Gas, Inc (Matheson) entered into a gas supply agreement with 1PointFive to provide oxygen for the carbon capture,utilisation and sequestration in the company’s first Direct Air Capture (DAC) plant in Texas.
⚫

Its DAC plant is expected to capture up to 500,000 tonnes of CO₂ per year and it would be world’s largest DAC plant. Matheson will
supply oxygen in abundance for DAC process to produce a pure stream of CO₂ which is then securely sequestered in geologic
reservoirs.

Airincluding CO2

Potassium hydroxide isrecycledslaked lime

Methane and Oxygen

Calciumcarbonate(CaCO3)

Potassium
carbonate(K2CO3)

CO2
Captureandstorage30

Air contractor

Pellet reactor

Calciner

Potassium hydroxide
reacts with CO2

Slaked lime andpotassium carbonate
reactsThermal decomposition of
calcium carbonate withoxygenated methane
combustion gas

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Initiatives in communication
Expansion of contents on our Carbon neutral web site ”We enable a carbon neutral world”⚫ Considering the contents capturing the change in market needs.
⚫ Set up dedicated page to look for business opportunities in biomethane field which
is being focused on in Europe.
⚫ Develop the launch campaign of biomethane market page.
・ Issue news release・ Mutual collaboration with websites of each NSHD group company.
(ex. Installation of link banner)

Exhibition: Salón del Gas Renovable October, 2023 in Spain
Induct concrete solutions of purification and condensation in exhibitions of biogas, biomethane or other renewable gas.

31

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Please check our
CN web site →What we aim to be（Experts who are well versed in the physical properties and features of gases）

Producing industrial gases and supplying them safely and reliably to all industrial fields.
Contributing 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“We enable a carbon neutral world”
32

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Closing remarks

33

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Q&A Session

Senior Executive Officer,
Group Sustainability
Management Office,and CSO

General Manager,
Sustainability Management,Group Sustainability
Management Office

General Manager,
Corporate Planning,Group Corporate Planning
OfficeToshifumi Abe

Tomoki Nakamura

General Manager,
Human Resources
Yasukazu Takada（Chief Sustainability Officer）

Takeshi Miki

35

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

General Manager,
Investor relations,Group Finance &Accounting Office

General Manager,
Public relations,Group Finance &Accounting Office

Keita Kajiyama

Takayoshi UmeharaAppendix

36

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Respond appropriately to climate change risks
In line with the recommendations of TCFD*
The results of the Group's impact analysis of opportunities and risks related to climate change and the Group's response are as follows,
Type
Transition

PhysicalClimate change risks

Financial
impactLargeBusiness risks

Business opportunities<Medium to long term>• Acquire business opportunities by differentiating throughearly response• Increase introduction of renewable energy by powerpurchase agreement and green power certificates

Medium<Medium to long term>• Decrease in sales of existing products due to screeningof low-carbon products• Promote the development of environmental productofferings and applications that contribute to low
carbonization• Promote energy saving by improving productivity
through the introduction of DX technology, etc.
(introduction of SAITEKI optimization of delivery)

Changes in market needs/
Changes in customers’
business activities

Large<Long term>• Decrease in sales due to changes in the manufacturing
process of the steel and chemical sector• Decrease in sales due to new entrants utilizing
by-product O2 gas as demand for water electrolysis
process expands<Short to medium term>• Increase profit margin by energy saving• Increase in demands for existing products that contributeto low carbonization<Medium to long term>• Increase in business opportunities throughenvironmental product offerings and applications
that contribute to low carbonization<Medium to long term>• Increase in demand for blue and green H2• Increase in demand for green fuels• Increase in demand for CO2 capture for CCUS

Reputation

Industry criticism

Large<Medium to long term>• Investor valuation decline for GHG emitting companies

Acute

Intensification of disasters/
Frequent typhoons/Heavy rain/
Droughts

Medium<Medium to long term>• Plant shutdowns due to disasters caused by abnormal
weather• Increase in premiums paid

Sea level rise/Rise inaverage temperatures

Small

Introduction of carbon pricing

Technology

Replacement to low-carbon
alternative products/Progressin energy saving

Markets

Chronic<Long term>• Narrowing of profit margin due to increase in runningcosts of air separation units caused by risingtemperatures<Medium to long term>• Continue stable funding by demonstrating contribution
to GHG emission reduction―<Medium to long term>• Increasing demand for medical products to treat
diseases* TCFD: The final report was released in June 2017 and recommends that companies and others disclose items on governance, strategy, risk management,
and indicators and targets related to climate change-related risks and opportunities.

37

Response/Actions by the NSHD Group<Medium to long term>• Decrease in profits due to increased tax burden

Policyregulations

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives• Promote the introduction of carbon-free (H2, NH3)
combustion technology• Expand the use of oxygen combustion• Acquire demand for medium-scale CO2 capture in
response to CCUS
• Expansion of the H2 supply business by the HyCO
business• Increase sales of environmental product offerings andapplications that contribute to low carbonization• Disclosure of quantitative data on GHG emission
reduction contributions through integrated reports, etc.
• Promote disclosure of Non-financial information• Promotion of disaster countermeasures• Use of insurance• Replacement of aging air separation units to reducerunning costs• Provision of medical oxygen, etc.

NIPPON SANSO Holdings Group Summary

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

Published on December 6, 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%

38

US

Revenue¥1,230.0 bn.

Operating income¥163.0 bn.

23%

26%
Japan

FYE2024 Financial Forecast（IFRS)EuropeAsia & Oceania

Thermos

Corporate

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

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 December 6, 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＞

39

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%

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

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

40

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.

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

2019.32023.3

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 Cylinder

41（ Small-scale supply）

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Supply via CylinderLP
Gas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.

42

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

NSHD group companies(Japan / US / Europe / Asia & Oceania / Thermos)

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.

43

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

For further information, please contact:
Public Relations for media

Investor Relations for investors

Public Relations,

Investor Relations,

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

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

Upcoming IR events
Q3 FYE2024 Earnings Call

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, Japan

44

December 6, 2023 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives© 2023 NIPPON SANSO Holdings Corporation All rights reserved