BofA Securities｜2023 Hydrogen Conference
Corporate Presentation
December 19, 2023
The United States with Tokyo, Japan

Important Notice
For the purpose of this notice, “presentation” means this document, any oral presentation, any question and answer session and any written or oral material discussed or distributed by
NIPPON SANSO Holdings Corporation (“NSHD”) regarding this presentation. This presentation (including any oral briefing and any question-and-answer in connection with it) is notintended to, and does not constitute, represent or form part of any offer, invitation or solicitation of any offer to purchase, otherwise acquire, subscribe for, exchange, sell or otherwise
dispose of, any securities or the solicitation of any vote or approval in any jurisdiction. No shares or other securities are being offered to the public by means of this presentation. This
presentation is being given (together with any further information which may be provided to the recipient) on the condition that it is for use by the recipient) on the condition that it is for use
be the recipient for information purposes only (and not for the evaluation of any investment, acquisition, disposal or any other transaction). Any failure to comply with these restriction may
constitute a violation of applicable securities laws. The companies in which NSHD directly and indirectly owns investments are separate entities. In this presentation, “NSHD” is sometimes
used for convenience where references are made to NSHD and its subsidiaries in general. Likewise, the words “the Company”, “we”, ”us” and “our” are also used to refer to subsidiaries ingeneral or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies.
●Forward-Looking Statements
This presentation and any materials distributed in connection with this presentation may contain forward-looking statements, beliefs or opinions regarding NSHD’s future business, future
position and results of operations, including estimates, forecasts, targets and plans for NSHD. Without limitation, forward-looking statements often include words such as “targets”, “plans”,“believes”, “hopes”, “continues”, “expects”, “aims”, “intends”, “ensures”, “will”, “may”, “should”, “would”, “could”, “anticipates”, “estimates”, “projects” or similar expressions or the negative
thereof. These forward-looking statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from thoseexpressed or implied by the forward-looking statements: the economic circumstances surrounding NSHD’s global business, including general economic conditions here and abroad;competitive pressures and developments; changes to applicable laws and regulations; the success of or failure of product development programs; decisions of regulatory authorities and thetiming thereof; fluctuations in interest and currency exchanges rates; claims or concerns regarding the safety or efficacy of marketed products or product candidates; the impact of healthcrises, like the novel COVID-19 pandemic, on NSHD and its customers and suppliers, including foreign governments in countries in which NSHD operates, or on other facets of its business;
the timing and impact of PMI (post-merger integration) efforts with acquired companies; the ability to divest assets that are not core to NSHD’s operations and the timing of any suchdivestment(s); and other factors identified in NSHD’s most recent annual Consolidated Financial Statements on Japanese Securities relevant acts and exchange commission, available on
NSHD’s website. NSHD dose not undertake to update any of the forward-looking statements contained in this presentation or any other forward-looking statements it may make, except as
required by law or stock exchange rule. Past performance is not an indicator of future results and the results or statements of NSHD in this presentation may not be indicative of, and are notan estimate, forecast, guarantee or projection of NSHD’s future results.
● Certain Non-IFRS Financial Measures
This presentation and materials distributed in connection with this presentation include certain financial measures not presented in accordance with International Financial ReportingStandards (“IFRS”), such as Core Operating Income, EPS (Earnings per share), Debt, Net Debt, Adjusted net D/E ratio and Free Cash Flow. NSHD’s management and executive officers
evaluates results and makes operating and investment decisions using both IFRS and non-IFRS measures included in this presentation. These non-IFRS measures exclude certain income,cost and cash flow items which are included in, or are calculated differently from, the most closely comparable measures presented in accordance with IFRS. By including these non-IFRS
measures, management and executive officers intends to provide investors with additional information to further analyze NSHD’s performance, core results and underlying trends. NSHD’s
non-IFRS measures are not prepared in accordance with IFRS and such non-IFRS measures should be considered a supplement to, and not a substitute for, measures prepared inaccordance with IFRS. Investors are encouraged to review the reconciliation of non-IFRS financial measures to their most directly comparable IFRS measure, which are on the part of ourslide deck.
● Financial information
NSHD’s financial statements are prepared in accordance with international Financial Reporting Standards (“IFRS”).

2

December 19, 2023 | NIPPON SANSO Holdings Corporation | BofA Securities | 2023 Hydrogen ConferenceGroup Overview
NSHD’s Group operating structure
Company name
Ticker (Tokyo Stock Exchange)

4091.T

Established

October 30, 1910

Head office

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

President CEO

3

Nippon Sanso Holdings Corporation (NSHD)

Thermos

Japan

Thermos K.K. group

Taiyo Nippon Sanso
Corporation group

Nippon Sanso
Holdings
Corporation

Toshihiko Hamada

Employees [As of March 31, 2023]

19,579

Revenue (￥bn.) [FYE2023]

1,186.6

Operating income (￥bn.) [FYE2023]

119.5

OI margin [FYE2023]

10.1%

Countries Served

32 Countries and Areas

Asia & Oceania

United States

Asia/Oceania region
group companies

Matheson Tri-Gas, Inc.
group

December 19, 2023 | NIPPON SANSO Holdings Corporation | BofA Securities | 2023 Hydrogen Conference

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

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

EuropeEuropeJapan

United States

Revenue

Revenue

Revenue¥ 272.8bn.

¥ 420.4bn.

¥ 303.0bn.

Segment OI

Segment OI

Segment OI¥ 34.9bn.

¥ 31.6bn.

¥ 37.0bn.

OI margin
12.8%

OI margin
7.5%

23%
Japan

35%
United States

OI margin
12.2%

Asia &
Oceania

Total
Revenue¥ 1,186.6bn.
Total Sales Ratio

100%

4

Asia &
Oceania

Thermos

Revenue

Revenue¥ 159.9bn.

¥ 30.1bn.

Segment OI

Segment OI¥ 15.4bn.

¥ 6.0bn.

OI margin
9.7%

13%

December 19, 2023 | NIPPON SANSO Holdings Corporation | BofA Securities | 2023 Hydrogen Conference

OI margin
19.9%

3%

26%

Our key businesses: Revenue Composition(FYE2023 full-term actual)

Industrial Gas

Main Products

579%－Oxygen－Nitrogen－Argon－Hydrogen, CO and syngas－Carbon dioxide－Helium－Related equipment & construction

Electronics

Main Products

18%－Arsine (AsH3)－Diborane (B2H6)－Fluoromethane (CH3F)－Hydrogen chloride (HCL)－Phosphine (PH3)－Silane (SiH4)－Related equipment & construction

December 19, 2023 | NIPPON SANSO Holdings Corporation | BofA Securities | 2023 Hydrogen Conference

3%

Thermos

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

Global HYCO
America

Global HYCO
Japan

Markets & Business
Development

Operations

Process Engineering
Standards & Projects

Asia ＆
Oceania(Note) Use of different terms in this presentation as below,
・ HyCO: the area of H2, CO, Syngas plus CO2
・ HYCO: our own business line

6

December 19, 2023 | NIPPON SANSO Holdings Corporation | BofA Securities | 2023 Hydrogen Conference

EuropeGlobal HYCO – Investment / Development Focus● Plant/supply Integrity Quality and growth at incumbent sites● Geographic footprint establishment in select countries/regions• Selected by presence, compatibility and growth• Lead in certain countries with HYCO
- Utilizing our HYCO expertise base
- Critical opportunity size

● Focus of development of Integrated solutions/value with customer investment● Business models for our “Blue” Hydrogen plays customized to case● Discriminative involvement with “Green” Hydrogen
including overall impact of utilized power● Select technology development
7

December 19, 2023 | NIPPON SANSO Holdings Corporation | BofA Securities | 2023 Hydrogen ConferenceGlobal HYCO – Plant Design/ EPC Approach● Select partnerships• Specific to technology/scope but highly selective• Specific to geography/case - EPC● Matheson/NSHD Design Specs. based on Reliability & lifecycle O&M● Target best-in-class lifecycle operations• Fleet reliability > 99.5% on single-plant basis• Leading safety performance• Performance through Collaboration- Field Staff and Experts- Remote Operations Center (ROC) & Tools- HYCO Process & Project Experts- Continuous feedback into plant design, instrumentation & controls

8

December 19, 2023 | NIPPON SANSO Holdings Corporation | BofA Securities | 2023 Hydrogen ConferenceGlobal Map of HyCO Plants

Global HYCO
Headquarters

Complex (Multiple SMRs, H2/CO)Standard (single SMR, H2 only)
Minor (<1 mmscfd)

9

Remote Operations Center
Clear Lake – La Porte – Deer Park Pipelines
Plant/Operation being established

December 19, 2023 | NIPPON SANSO Holdings Corporation | BofA Securities | 2023 Hydrogen ConferenceGlobal HYCO Operations Record - Reliability
H2 Supply Operations Record - Reliability

11 yrs

Production base

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Average

Lima-199.60%

99.81%

99.93%

99.91%

99.56%

98.05%

99.92%

99.91%

99.87%

98.74%

100.00%99.57%

Lima-298.37%

99.53%

99.98%

99.44%

100.00%99.80%

100.00%99.85%

99.99%

100.00% 100.00%

99.72%

99.38%

99.41%

100.00%99.06%

100.00%98.96%

99.26%

99.44%

Lima-3
Lemont-1

100.00%99.95%

99.34%

97.75%

99.89%

99.73%

99.34%

99.97%

99.67%

99.98%

99.56%

99.56%

Lemont-2

98.32%

90.04%

99.13%

99.98%

98.88%

99.26%

99.50%

99.71%

99.85%

99.80%

99.72%

98.56%

McIntosh 2

99.58%

99.62%

100.00%99.68%

100.00%99.40%

99.85%

99.97%

98.52%

93.67%

99.87%

99.11%

Saraland99.82%

99.81%

99.40%

99.71%

97.83%

99.37%

99.98%

97.04%

98.85%

99.91%

99.79%

99.23%

Anacortes

97.38%

99.17%

99.80%

99.91%

99.67%

99.98%

99.72%

99.63%

99.01%

90.18%

99.33%

98.53%

97.42%

99.59%

99.42%

97.86%

99.72%

98.80%

98.40%

98.40%

99.04%

99.95%

99.50%

97.81%

99.60%

99.30%

Pensacola
Talara PHP
Talara NIS
Average1099.01%

98.27%

99.65%

99.48%

99.40%

99.37%

99.53%

99.41%

December 19, 2023 | NIPPON SANSO Holdings Corporation | BofA Securities | 2023 Hydrogen Conference

99.46%

11

December 19, 2023 | NIPPON SANSO Holdings Corporation | BofA Securities | 2023 Hydrogen ConferenceGlobal HYCO Operations Record - Safety
H2 Supply Operations Record - Recordable Injuries
Production base

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Lima-1

0

0

0

0

0

0

0

0

0

0

0

Lima-2

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Lima-3
Lemont-1

0

0

0

0

0

0

0

0

0

0

0

Lemont-2

0

1

0

0

0

0

0

0

0

0

0

McIntosh

0

0

0

0

0

0

0

0

0

0

0

Mobile-Saraland

0

0

0

0

0

0

0

0

0

0

0

Anacortes

1

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Pensacola
Talarain Peru

Performance with current key staff, management, processes

No recordables for 8 years – unparalleled across hydrogen-syngas-hydrocarbons operations
12

December 19, 2023 | NIPPON SANSO Holdings Corporation | BofA Securities | 2023 Hydrogen ConferenceNew Projects in Execution & Commercialization
Location

Country
India

Numaligarh, Assam

USA

Saraland, Alabama

13

One of the largest, multi-feed SMR-based Hydrogen plants.
Well into EPC.
Larsen & Toubro is overall EPC partner.
Reformer license from Topsoe.
Contract executed late Q4 FYE2023.
Hydrogen plant integrated on feedstock-fuel with Renewable Diesel plant.
Well into EPC.
Reformer of TK Uhde design.
Contracts execution Q2 FYE2022.

Peru

Largest multi-feed Hydrogen Plant/Supply Scheme in South America
established by Petroperu.
Commissioning and early Operations by Matheson HYCO in progress.

USA

Mini Hydrogen plant to supply our local pipeline network and merchant business.
Early Operations successfully commenced.
Linde Engineering plant.

Talara, Peru

St. Marys, PA

Key Features & Progress

December 19, 2023 | NIPPON SANSO Holdings Corporation | BofA Securities | 2023 Hydrogen ConferenceSummary• NSHD’s HYCO have established very safe, high reliability HYCO across corporation• Plant Standards established for different types of technology enable robust plant designs for the future
Establishment• NSHD HYCO’s efforts and collaboration have led to significant projects, execution of key long-term
contracts and significant footprint growth
GrowthFuture14• Business Objectives include:• Continue business/footprint establishment in growth geographies• Establish positions involving step-out carbon-mitigated solutions in specific segments in
Americas/EU/Japan• Strategic alliances for select production and applications technologies, selected per economic
robustness

December 19, 2023 | NIPPON SANSO Holdings Corporation | BofA Securities | 2023 Hydrogen Conference

Q&A Session

16

Head,
Global HYCO,
Matheson-Tri Gas, Inc.

General Manager,
Investor relations,Group Finance & Accounting OfficeRaghu Menon

Keita Kajiyama

December 19, 2023 | NIPPON SANSO Holdings Corporation | BofA Securities | 2023 Hydrogen ConferenceAppendix

17

December 19, 2023 | NIPPON SANSO Holdings Corporation | BofA Securities | 2023 Hydrogen Conference

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%

18

US

Revenue¥1,230.0 bn.

Operating income¥163.0 bn.

23%

26%
Japan

FYE2024 Financial Forecast（IFRS)EuropeAsia & Oceania

Thermos

Corporate

December 19, 2023 | NIPPON SANSO Holdings Corporation | BofA Securities | 2023 Hydrogen Conference

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

19

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%

December 19, 2023 | NIPPON SANSO Holdings Corporation | BofA Securities | 2023 Hydrogen Conference

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

20

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 19, 2023 | NIPPON SANSO Holdings Corporation | BofA Securities | 2023 Hydrogen Conference

2019.32023.3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%

21

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

2020.32021.373.0

2022.3

87.4

90.3

87.2

2020.32021.3

102.7

65.8

2023.3

December 19, 2023 | NIPPON SANSO Holdings Corporation | BofA Securities | 2023 Hydrogen Conference

2019.32022.32023.3

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 Cylinder

22（ Small-scale supply）

Supply via Cylinder

December 19, 2023 | NIPPON SANSO Holdings Corporation | BofA Securities | 2023 Hydrogen ConferenceLP
Gas

For further information, please contact:

Investor Relations for investors

Upcoming IR events
Q3 FYE2024 Earnings Call

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

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

23

December 19, 2023 | NIPPON SANSO Holdings Corporation | BofA Securities | 2023 Hydrogen ConferenceⒸ 2023 NIPPON SANSO Holdings Corporation All rights reserved