NSHD
Working towards
a sustainable future.

Web IR Conferenceon Sustainability initiatives
December 6, 2022
Tokyo（Japan）

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

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December 6, 2022 | 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.

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December 6, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Opening remarks

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December 6, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

1. Sustainability Management Strategy

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December 6, 2022 | 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 Praxair’sEuropean operations
Feb. 2019
Acquisition of Linde’s
U.S. HyCO businessNov. 2019
Started disclosing information
via website, etc., in support of
TCFD.

Nov. 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
MTP「NS Vision2026」released●Launch of Eight non-financial programs
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●Establishment and disclosure of
non-financial KPI (see following pages)● Publication of TCFD Scenario Analysis Results

Jul. 2020
Started our independent
response to CDP
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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, 2022 | 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 consideration by the Board of Directors (FYE2022)

Sustainability Management and Operating Structure
Nine Directors,

・Development of Non-financial KPI・CDP response policy
・Review of materiality

Board of Directors（ five of whom are outside ）・Validation of TCFD scenario
analysis results
・Signature to UNGC

Group companies Close collaborative relationship
Reporting【Gas Business in Japan】
Taiyo Nippon Sanso Group
Supervision【Gas Business in the U.S.】

Representative Director, President CEO

Management Committee

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

Global Strategy Review Committee*

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

NSHD

CSO ＆ GSMO

【Gas Business in Europe】
Nippon Gases Euro-Holding Group

Global Risk Management Committee*
Global Compliance Committee*

Group Sustainability
Management Office(GSMO)【Gas Business in Asia & Oceania】
Asia and Oceania region
business company group

CSO
Technological Risk Liaison Committee
Meeting between NSHD and each operating company todetermine specific measures to be taken【Thermos Business】
Thermos GroupGas Business in Japan / Gas Business in the U.S. / Gas Business in Europe / Gas Business in Asia & Oceania / Thermos Business

Collaboration

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December 6, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Implement the five focused fields
Our MTP
SloganNS Vision 2026 : 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:

Satoshi Suzuki, General Manager
Business Planning & Admin,
Corporate & Business Planning,Group Corporate Planning office
NIPPON SANSO Holdings Corporation（and, CN global executive team in NSHD Group）

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Our MTP

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

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

２ CNP Ⅱ: Carbon Neutral Program Ⅱ
３ ZWP:

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

18%
down

X＞Y

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

４ SWP:
５ SFP:

environmental product offerings and applications

Sustainable Water Program
Safety First Program

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

Social＜Safety Management＞● Lost Time Injury Rate

≤1.6

６ QRP:

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

７ TDP:

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

Governance

８ CPP:

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

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100%

Our MTP: NS Vision 2026

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, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

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

CDP Climate Change

4.5
4.0

2018

2019

2020

2021

NSHD

(B)

(A-)

B

A-

Competitor A

A-

A-

A-

A-

Competitor B

A-

A-

A-

A-

Competitor C

B

D

B

B

1.0

Competitor D

B-

A-

B

B

0.5

MCG*

B

A-

B

B

3.5

3.0

3.2
3.0

2.5
2.0
1.5

2.2
1.9

2.0

0.0
2018
NSHD

2019
Competito r A

2020
Competito r B

2021
Competito r CCompetito r D

2022
MCG *

After 2020, through courteous communication with the evaluation
agencies, the Improvement trend since the establishment of theholding company structure.

As of 2021, we have improved to the same level of evaluationcompared to our peers.
Since the Company began responding independently in 2020. In 2018 & 2019,
the evaluation shown are the results of the assessment on a MCG basis.
As of the end of Nov. 2022, the assessment results for 2022 have not been received.

* MCG：Mitsubishi Chemical Group Corporation（Mitsubishi Chemical Holdings Corporation changed of trade name to Mitsubishi Chemical Group Corporation effective on July 1, 2022）

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December 6, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

2. Measures to achieve Non-financial KPI

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

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

KPI

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

FYE2026：18％ down, FYE2031：32％down（Reference） FYE2022 actual：9%down* The figure for the volume of GHG emissions for FYE2019, which is the reference value, calculate the actual GHG emissions in FYE2019 plus thefollowing: 1) estimated emissions of the Gas Business in Europe in FYE2019 and 2) estimated emissions of the U.S. HyCO business in FYE2019.

Scenarios for achieving goals（Internal measures）Factors that can be controlled by the Group（External environment）Factors beyond the Group's control

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

Changes in power supply configuration
Reduction due to revision of emission factors（Scope2）
Estimates based on IEA emission factor projections
Source: IEA Carbon intensity of electricity generation in selected regionsin the Sustainable Development Scenario, 2000-2040①Replacement of Air Separation Units (ASUs)②Reduction of electricity usage through digital solution technologies③Streamlining of logistics and review of transport

Promotion of the use of renewable energy and green power- Greening Electricity Procurement●Composition of GHG emissions of our group
Mainly18%

HyCO-derived

Carbon capture and offsets - Consideration of CCUS implementation

Scope 1
Initiatives for CN

Scope 2Mainly82%

14①Switch to electricity companies with low emissions coefficients②Purchase green power certificates③Introduce renewable energy①Promote CO2 capture②Carbon offset through new technology, forest conservation, and tree-planting activities, etc.

Electricity-derived

December 6, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

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

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

Scenarios for achieving goals（External environment）Factors beyond the Group's control

Social demands from the perspective of global
environmental protection

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Non-financial

KPI

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

FYE2026： X ＞Y

（Reference）FYE2022 actual：Achieved（X＞Y）
Unit: thousands of tonnes CO2e
X: 6,865 (Products and services: 3,176, Industrial gases: 3,689)
Y: 5,921 (Composition ratio: Scope 1: 18%, Scope 2: 82%)
（Internal measures）Factors that can be controlled by the Group

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 technologies(e.g., Hydrogen-reduced iron making with economic rationality,
highly efficient electric furnace conversion)①Areas 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, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

ZWP／SWP: To preserve the global environment（Zero Waste Program／Sustainable Water Program ）16

Zero Waste Program

Sustainable Water Program

Aiming to reduce waste emissions

Aiming to minimize water risk

The 3R (Reduce, Reuse, Recycle) of waste disposal is arequirement of the times, and we will work on proper
management and recycling of waste to reduce emissions
and build a resource cycle.

Effective use of water resources is a must, and we aim toconserve water resources in our corporate activities
through efficient use of water.

＜New Initiatives in the Japan Gas Business＞
We started HALD (Halve Amount of Landfill Disposal) to halve
the amount of industrial waste generated by Taiyo Nippon Sanso(non-consolidated) in Japan for landfill disposal by FYE2026.

Identify water risks and implement measures for high-risk sites● 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.

December 6, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

SFP／QRP: To ensure the safety of our workforce and improve the reliability of our quality（Safety First Program／Quality Reliability Program）

Quality Reliability Program

Safety First Program

Aiming to be a global leader in the industrial
gas industry through safety
Aiming to improve quality and reliability
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.

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

＜Specific measures to achieve＞＜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

17

・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

December 6, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

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

Compliance Penetration Program

Talent Diversity Program

Thoroughly adhere to the prerequisites

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

KPI

for maintaining corporate existence

FYE2031：
FYE2026：
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＜Specific measures to achieve＞

・To ensure the acceptance of a diverse workforce & ease of work.
・Promote cross-regional exchange of human resources
・Strengthen succession planning18(corporate ethics, safety and security, and respect for human rights)

Non-financial

KPI

FYE2026：
Rate of receiving compliance training 100%

Promote the establishment of compliance by spreadingawareness and acquiring correct knowledge of compliance＜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

December 6, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

To enhance Corporate value through Communication
Internal communication

External communication

Aiming to strengthen overall strength andexpression through intra-group communication

Provide up-to-date and accurate information about
the Group that meets the needs of stakeholders＜Specific measures to achieve＞＜Specific measures to achieve＞● To disseminate common values and attitudes,
the Integrated report prepared with the cooperation ofeach operating company was redeveloped and relearned
within the Group.

● Promote communication with customers and business
partners through the Group as a whole, based on sharedvalues and attitudes● Operational Excellence Day● Execute appropriate initiatives and disclosures that reflect
careful dialogue with external evaluation agencies(FTSE, MSCI, etc.), investors, and analysts.

(one of five key strategies: Operational Excellence)

to share best practices at operating companies
in each region

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December 6, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

3. Business Opportunities in Carbon Neutrality

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December 6, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

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

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

Steering Committee（CNSC）

Basic Policy

Head

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

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

4 fields

December 6, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Japan

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

22

Regional CN
Working Group（RCNWG）

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

Integrated promotion system
to respond promptly to customer needs

The U.S.

EuropeAsia &
OceaniaFour technologies for contributing CN

Combustion

HyCO*

CO2 Recovery

O2 Production

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

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

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

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

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

Refineries, Petrochemicals
Renewable fuels, Steel

Steel, Refineries,
Petrochemicals, Cement

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

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December 6, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Our Activities（1）Combustion field

Combustion field
Partnering with Sarralle, which has extensive engineeringexperience in the environmental, energy, and steel sectors,
in the field of oxygen and hydrogen burners to provide solutions
for CN in the European steel industry.

Successful demonstration test of glass melting by 100%
Hydrogen combustion using a Hydrogen-Oxygen burner
developed jointly with a glass manufacturing company.
It was confirmed that the same melting capacity as that achievedby 100% Natural Gas combustion.
Comparison of combustion conditions inside a Glass Melter

H2 50%＋ LNG 50%

H2 100%

LNG 100%

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December 6, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Our Activities（2）CO2 Recovery field

HyCO field

In addition to conventional Hydrogen production from LNG(HyCO), Hydrogen can also be produced and supplied
from renewable Hydro-carbon fuel*, a byproduct of
renewable diesel produced by Vertex Energy

Participation in a joint
demonstration project for therecovery and subsea storage ofCO2 from blast furnace off-gas ofa steel manufacturing company

Participation in a demonstration test for effective utilization of CO2
recovered from power plants
Memorandum of Understanding
for Effective Utilization of Liquefied CO2（OCG/N-Eco/Sera-saien）

NIPPON EKITAN Corporation■ Drawing a
grand design■ Coordination of
stakeholders

Vertex Energy, Inc.

■ Production of liquefied CO2■ Pre-shipment quality check■ Shipping siteattendance/assistance■ Liquefied CO2 transfer and supply■ Dedicated tanker truck arrangement■ Provide information on official
standards and published productstandards for liquefied CO2（Mobile, Alabama）
Sera-saien
Liquefied
CO2
ProductionData* renewable Hydro-carbon fuel (feedstocks) : C1-C10 hydrocarbon streams including bio-naphtha and other bio-offgases

25■ Tomato cultivation with
OCG-produced liquefied CO2■ Providing cultivation data

（Reference）OCG: The Osaki CoolGen Corporation
https://osaki-coolgen.jp/en/project/overview.html

December 6, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

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

Our thought
The value standard of “CN" and “Sustainability" will be added to the perspective of all activities.
Qualitative changes in the Value Chain adapted to the new society are essential.
1. Quick wins：Building on our track record of acquiring CN 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, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Closing remarks

27

December 6, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Q&A Session

Senior Executive Officer,
Group Sustainability
Management Office,and CSO（Chief Sustainability Officer）

Takeshi Miki

Senior Executive Officer,
Group Human Resources &Corporate Secretariat
Officeand General Manager,
Human Resources
Satoshi Wataru

29

General Manager,
Sustainability Management,Group Sustainability
Management Office
Toshifumi Abe

General Manager,
Business Planning & Admin,
Corporate & Business
Planning,
Group Corporate Planning
OfficeSatoshi Suzuki

December 6, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

General Manager,
Investor relations,Group Finance &Accounting Office
Keita Kajiyama

General Manager,
Public relations,Group Human Resources &Corporate Secretariat
OfficeTakayoshi UmeharaAppendix

30

December 6, 2022 | 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.

31

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

Policyregulations

December 6, 2022 | 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 November 1, 2022

Corporate Philosophy

Corporate Information（As of March 31, 2022）

Company Name

Nippon Sanso Holdings Corporation

Founded

October 30, 1910

Headquarters

1-3-26 Koyama Shinagawa-ku, Tokyo 142-0062, JapanTEL

81-3-5788-8500

Group Philosophy
Proactive. Innovative. Collaborative.

Representative Director, President CEO
Representative

Toshihiko Hamada

Common stock

37.3 billion yen

Stock information（As of March 31, 2022）

Number of shares

Making life better through gas technology.

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.

433,092,837

Number of shareholders

14,709Listed stock exchanges

Main Core businessTokyo Stock Exchange Prime Market

Ticker4091.T

Distribution by share holders (%)

Industrial Gas businessJapanese Indivisuals and others

Electronics business

Thermos business

9.82（Currently, Mitsubishi Chemical Group）

Mitsubishi Chemical Holdings

0%

10%

Foreign Institutions and Individuals

50.59

20%

30%

40%

Other Japanese Corporations

50%

60%

15.84

70%

80%

Japanese Financial Institutions

5.55

90%

100%

18.20

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

7%

13%
39%

22%

0.4%
33%

22%

19,398\957.1bn.

people

15%

32

US

Revenue¥1,160.0 bn.

Operating income¥113.0 bn.

23%

23%

Japan

FYE2023 Financial Forecast（IFRS)EuropeAsia & Oceania

Thermos

Corporate

December 6, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Net income attributable toowners of the parent

EPS¥68.0 bn.
¥157.11

Our Medium-term management plan Summary

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

Published on November 1, 2022

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＞

33

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, 2022 | 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

OI margin

9.3%

646.2

740.3

850.2

2019.32020.3818.2

2021.3

10.9%

10.6%

2022.3Hybrid Finance (HBF)2018.3Net debt excluding HBF

2020.32021.32022.3（\ bn.）

10.4%

Adjusted net D/E ratio*

1.15
0.94

76.6

53.3

55.2

64.1

2020.32021.3

5.6%

2018.3

41.2

2019.3

Depreciation
and amortization

2022.3（\ bn.）

7.8%

74.4

72.8

62.5

6.7%

CAPEX
% Sales

8.6%
7.3%

1.45

6.7%

6.3%

48.9

Capital expenditures
9.7%（\ bn.）

NI margin

101.1

88.8

66.8

2019.3

Profit attributableto owners of the parent

7.6%

93.9

（\ bn.）Net interest-bearing debts

1.54

11.0%
9.0%

957.1

59.8

2018.3（\ bn.）

Operating income（IFRS）

60.0

83.7

86.3

2020.32021.3

92.4

56.1
43.2

695.7

648.3

608.1

585.5

274.9

250.0

250.0

250.0

250.0

2018.32019.32020.32021.32022.3*Adjusted Net D/E Ratio: an indicator of safety (financial soundness) calculated in consideration of this partdue to 50% of the amount raised by HBF is permitted as “Equity" by rating agencies.

34

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

December 6, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

2018.32019.32022.3

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

35（ Small-scale supply）

December 6, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

Supply via CylinderLP
GasImproving to fruitful report for our stakeholders
Production process for 2022 edition

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

Issuing the Report

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

Sub-heads

Close Communication & Good Collaboration

NSHD group companies
NSHD integrated report 2022
（We have released on September 28.）
Please jump to the access webpage link. > https://www.nipponsanso-hd.co.jp/en/ir/library/integrated_report.html

36

December 6, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives(Japan/the U.S./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.

37

December 6, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives

For further information, please contact:
Public Relations for media

Investor Relations for investors

Public Relations,Group Human Resources & Corporate Secretariat Office

Investor Relations,Group Finance & Accounting Office

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

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

Upcoming IR events
Q3 FYE2023 Earnings Call

February 2, 2023

www.nipponsanso-hd.co.jp/en/
NIPPON SANSO Holdings Corporation (Ticker:4091.T)
Headquarters：1-3-26 Koyama Shinagawa-ku, Tokyo 142-0062, Japan38

December 6, 2022 | NIPPON SANSO Holdings Web IR Conference on Sustainability initiatives© 2022 NIPPON SANSO Holdings Corporation All rights reserved