FYE2021 Full-term Earnings Presentation（Fiscal year ended March 31, 2021）

May 20, 2021
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

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

1.

Agenda3

2.

Introduction
FYE2021 Overview

3.

FYE2022 Business Plan

4.

Q&A Session

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

Representative Director,
President CEO
Yujiro Ichihara

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

Member of the Board,
Executive Vice President
Toshihiko Hamada

1. Introduction

2. FYE2021 Overview

3. FYE2022 Business Plan

4. Q&A Session

1. Introduction

Representative Director,
President CEO
Yujiro Ichihara

4

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

1. Introduction

2. FYE2021 Overview

3. FYE2022 Business Plan

4. Q&A Session

2. FYE2021 Overview
Executive Officer,
Group Finance &Accounting Office, and CFO
Alan Draper5

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

2. FYE2021 Overview

Review of Mid-term management plan “Ortus Stage 2”（Four years plan from April 2017 to March 2021）

Mid-term management plan ”Ortus*1 Stage 2” focused on four key strategies:

StructuralreformGlobalization

Innovation

M&A

Our main efforts, strong focus, and achievements were made in the following areas:
1. Increased globalization and expansion through the acquisition of the European business and the US HyCO*2 business
2. Commissioned five on-site projects in the U.S.
3. Strengthened the electronics specialty gases business sector in East Asia
4. Enhanced and expanded supply base in the Asia & Oceania region.
5. Transitioned to holdings company structure which fosters improved communication, faster decision making and mobilization
The COVID-19 pandemic in Q1 FYE 2021 caused most of our manufacturing customers to significantly reduce production activities which in turn reduced
their industrial gas requirements and our sales. The subsequent quarters had a strong recovery until profit returned in Q3 FYE 2021 to pre-crisis levels.
*1 Ortus : "Beginning, Birth" in Latin*2 HyCO Business: A business that supplies Hydrogen(H2) and Carbon monoxide(CO) on-site to petroleum refining and petrochemical manufacturers.

6

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

2. FYE2021 Overview

Review of Mid-term management plan “Ortus Stage 2”
FYE2017full-term（Unit：￥ bn.）

Revenue

FYE2018
full-term

FYE2019
full-term

FYE2020full-term

FYE2021full-term(the 1st FY)(the 2nd FY)(the 3rd FY)(the Final FY)

FYE2021（） (planned)(Annonced on Feb. 2019)

581.5

646.2

740.3

850.2

818.2

910.0

54.7

60.0

65.8

90.3

87.2

100.0

Core OI margin

9.4%

9.3%

8.9%

10.6%

10.7%

11.0%

Overseas revenue ratio

40.8%

43.3%

47.9%

55.5%

56.1%

55.0%

ROCE*2

8.4%

8.4%

6.2%

6.4%

6.1%

7.1%

ー

ー

1.54

1.45

1.15

1.27

20

23

25

28

30

ー

C o re Op e ra ti n g In co m e

Adjusted net D/E ratio*1*3Annual dividends per share (￥)＜Future Issues＞
１．Utilize and leverage our group’s comprehensive strengths across regions
２．Pursuing Growth and Profitability in the mature industrial gas market (mainly Japan and Europe)
３．Implementation of M&A and capital investment in the growing industrial gas market (the U.S., Asia and Oceania)

４．Aggressive sales activities related to electronic materials and gas for electronics, and R&D of advanced technologies
５．Implement business measures that contribute to the realization of a sustainability society (Decarbonization, resolution of food issues, etc.)*1 Core operating income: It is calculated as operating income excluding certain gains and expenses attributable to non-recurring factors (non-recurring items).
Nonrecurring items are costs of structural reform (cost for withdrawal or downsizing business operations and special retirement allowances), losses caused by disasters or serious accidents, and other gains and expenses (such as disposal of idling assets).
*2 ROCE(Return on Capital Employed)：A profitability indicator which is calculated as Core operating income / (outstanding interest-bearing debt + equity attributable to owners of parent)*3 Adjusted net D/E ratio：Please refer to Appendix_P.27.

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May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

2. FYE2021 Overview

Summary: Progress toward Financial targets
FYE2021
Business
performancein diligent manner
during COVID-19

Initiatives
for Groupdevelopment ofcomprehensive
strengths
Steadilypromotingfinancialsoundness

Stable production and supply of essential industrial gases and medical equipment
In Europe and the U.S., where demand for industrial gases experienced a sharp and sudden reduction, cost controls,
cost reduction, and productivity actions were implemented to compensate for some of the volume reduction.
In Thermos Business, although demand related to outdoor products, which are our mainstay products, fell significantly,
we expanded sales to stimulate new demand for household products (tumblers and fried bread) by capturing thelifestyles of people who changed due to restrictions on out-of-home work and telecommuting.
Creating synergies by sharing the strengths and advantages of each region globally through the transition to a holding
company structure.
Actively deploy best practices in other regions globally, such as Productivity, which is ahead of the European business
Develop electronics-related businesses (electronic materials gas, related equipment and construction) through a unified
group strategy, including sales, logistics, and planning, through a strong global business network
Reduce interest-bearing debt and steadily return profits to shareholders*1 after steadily managing working capital basedon cash generated against the backdrop of business expansion
Reduce interest-bearing debt as planned in line with the target set in February 2019 of "falling below the adjusted net
D/E ratio*2 1.0 times by the fiscal year ending March 2023"*1 steadily return profits to shareholders : Please refer to P.7*2 Adjusted net D/E ratio: 50% of the amount raised through hybrid financing (¥250 bn.) is accepted as "capital" by rating agencies, so this is an indicator of safety (financial soundness) calculated
by taking this portion into account. Please refer to Appendix_P.27.

8May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

2. FYE2021 Overview

Summary of Consolidated financial results (FYE2021 Full-term)
FYE2020
Full-term

YoY

FYE2021Full-term

D i ffe re n ce

% Change（Unit：￥ bn.）

（Announced on Feb. 2）

Revenue

850.2

818.2

-32.0

-3.8%

802.0

Core Operating Income
Core OI margin

90.3
10.6%

87.2
10.7%

-3.1

-3.4%

83.0
10.3%

3.5

1.5

-2.0

Operating Income（IFRS）
OI margin

93.9
11.0%

88.8
10.9%

-5.1

-5.4%

84.6
10.5%

Income before income taxes
Net income attributableto owners of the parent
NI margin

79.1

77.7

-1.4

-1.8%

72.9

53.3
6.3%

55.2
6.7%

+1.9

+3.5%

48.1
6.0%

123.26127.59+4.33

111.15

USD （￥）

108.95105.94-3.01

105

EUR （￥）

120.85124.07+3.22

123

Non-recurring profit and loss

EPS（￥）Forex* Total Forex impact for FYE2021 full-term : Negative impacts of ¥0.75 bn. on revenue and Positive impacts of ¥0.1 bn. on core operating income.

9

FYE2021
Forecast

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

1.6

2. FYE2021 Overview

Segment Revenue (FYE2021 Full-term)
FYE2020

FYE2021full-termfull-term

YoY

Composition
ratio

Difference

FYE2021% Change

Forex impact（Unit: ￥ bn.）

（Announced on Feb. 2）

Gas business in Japan

356.1

338.9

4 1 .4 %

-17.2

-4.8%

―

330.9

Gas business in the U.S.

198.8

189.9

2 3 .2 %

-8.9

-4.5%

-5.4

186.5

Gas business in Europe

165.5

160.0

1 9 .6 %

-5.5

-3.3%

+4.4

157.7

Gas business in A&O *

104.5

105.3

1 2 .9 %

+0.8

+0.7%

+0.3

102.3

Thermos business

25.1

23.9

2 .9 %

-1.2

-4.6%

-0.0

24.6

Consolidated total

850.2

818.2

1 0 0 .0 %

-32.0

-3.8%

-0.7

802.0

* A&O: Asia and Oceania.

10

forecast

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

2. FYE2021 Overview

Segment Income*1 (FYE2021 Full-term)
FYE2020

FYE2021full-termfull-term

YoY

Composition
ratio

Difference

FYE2021% Change

Forex impact（Unit: ￥ bn.）

（Announced on Feb. 2）

Gas business in Japan

28.7

29.1

8.1%

8.6%

22.2

23.4

11.2%

12.3%

24.8

21.2

15.0%

13.3%

9.9

9.4

9.5%

9.0%

7.2

5.2

28.8%

21.8%

Eliminations or Corporate * 2

-2.6

-1.3

-1 .5 %

+1.3

―

―

-1.8

Consolidated total

90.3

87.2

1 0 0 .0 %

-3.1

-3.4%

+0.1

83.0

10.6%

10.7%

OI margin

Gas business in the U.S.
OI margin

Gas business in Europe
OI margin

Gas business in A&O
OI margin

Thermos business
OI margin

Core OI margin

3 3 .4 %

+0.4

+1.3%

―

27.2
8.2%

2 6 .9 %

+1.2

+5.4%

-0.6

21.4
11.5%

2 4 .3 %-3.6-14.5%

+0.6

21.0
13.3%

1 0 .9 %

-0.5

-4.6%

+0.0

9.5
9.3%

6 .0 %-2.0-27.6%

-0.0

5.7
23.2%

*1

Segment Income：Represents core operating income, which is calculated as operating income excluding certain gains or losses attributable to non-recurring factors (non-recurring items).

*2

Eliminations or Corporate：Includes elimination of inter-segment transactions and corporate expenses (basic research expenses), etc. not allocated to each reportable segment.

11

forecast

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

10.3%

2. FYE2021 Overview

Cash flow (FYE2021 Full-term)
Despite the pandemic, our company generated sufficient free cash flow to distribute dividends and ensure debt reduction.
Free cash flow*1
89.5（Unit：¥ bn.）

149.2

1.0
60.7

100.0

End of FYE2020
Beginning cash

52.9

Operatingcash flow

CAPEX &
Investments
and loans

Otherregardinginvesting activities

Short-termLong-term
Debt repayment*2 Debt repayment*2*1

Free cash flow：Items reconstructed from consolidated statements of cash flows prepared in accordance with IFRS. Please refer to Appendix_P.26.

*2

Long-term Debt and Short-term Debt repayment：Represents cash paid.

*3

Other：Indicates items such as Forex impact on cash lease obligations, acquisition of investments, net proceeds from short term borrowings.

12

25.9

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

12.1

Full-term
Dividend
paid

91.0
7.6

Other*3
regardingfinancing activities

End of FYE2021
End cash1. Introduction

2. FYE2021 Overview

3. FYE2022 Business Plan

4. Q&A Session

3. FYE2022 Business Plan
Member of the Board,
Executive Vice President
Toshihiko Hamada

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May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

3. FYE2022 Business Plan

Summary: Business environment awareness (Assumptions for forecast)
Following the transition to a holding company structure, we were able to proactively incorporate businessexpansion and growth in each region. There are differences in the economic environment in each region,
and we will incorporate growth according to the circumstances of each region.
Uncertain
economic
environment

Economicrecovery in the
COVID-19 disaster

Driving force
for strong growth
expected

14

Although our business activities have been affected in various ways by the pandemic, there has been no serious impact on ourbusiness performance to date.
However, recognizing that the environment is not conducive to making concrete and feasible plans based on a medium-to long-term
perspective, we will postpone the formulation of our medium-term management plan for one year and position it
as “ one year of foundation development and preparation" that will lead to the next leap.

Even if the spread of the COVID-19 infection and other factors in the countries and regions in which we operate negatively impact ourbusiness, our group's mission as an industrial gas supplier remains unchanged to provide a stable supply of gas needed by allindustries.
Since January 2020, demand in the Industrial Gases business has declined significantly compared with the previous fiscal year amida decline in production operations at major customers. However, we expect demand in all global regions to continue recovering
toward the FYE2022.
In the electronics business (electronic material gases, related equipment and construction) for semiconductors, we expect steady
growth in Japan and East Asia following the FYE2021.
We will gain momentum for economic recovery in Europe, the U.S. and elsewhere in the region. Plants operating in Europe this fiscal
year (two plants)
In recent years, on-site projects (five projects) that began operations in the U.S. are expected to improve utilization rates while theuser's operating environment is returning.

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

3. FYE2022 Business Plan

Summary of Consolidated financial forecast (FYE2022 full-term forecast)
FYE2021 actual
full-term

YoY

FYE2022 forecast
full-term

Difference% Change（Unit：￥ bn.）

Revenue

818.2

865.0

+46.8

+5.7%

Core Operating Income
Core OI margin

87.2
10.7%

96.0
11.1%

+8.8

+10.0%

1.5

0.5

-1.0

88.8
10.9%

96.5
11.2%

+7.7

+8.6%

77.7

86.0

+8.3

+10.7%Net income attributableto owners of the parent
NI margin

55.2
6.7%

58.2
6.7%

+3.0

+5.4%

EPS（￥）

127.59134.49

+6.90

ROCE

6.1%

6.7%

Adjusted net D/E ratio

1.15

1.01

105.94124.07105.00125.00Non-recurring profit and loss
Operating Income（IFRS）
OI margin
Income before income taxes

Forex

15

USD（￥）
EUR（￥）

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

-0.94
+0.93

3. FYE2022 Business Plan

Results forecast by segment [Reclassified*] (FYE2022 full-term forecast)
FYE2021 actual
full-term

FYE2022 forecast

YoY

Composition

full-term

ratio

Difference% Change

Forex impact

+18.1
+1.3

+5.3%
+4.1%

―
―

+8.1
+0.5

+4.2%
+2.0%

-1.6
-0.2

+13.0
+3.8

+8.1%
+18.0%

+1.1
+0.1

+4.0
+1.3

+3.9%
+14.3%

―
―

+4.1
+2.3

+16.8%+43.2%

―
―

―
-0.3

―
―

+0
―

+46.8
+8.8

+5.7%
+10.0%-0.4+0.0（Unit: ￥ bn.）
Revenue

Gas business in Japan

Segment OI
OI margin
Revenue

Gas business in the U.S.

Segment OI
OI margin
Revenue

Gas business in Europe

Segment OI
OI margin
Revenue

Gas business in A&O

Segment OI
OI margin
Revenue

Thermos business

Segment OI
OI margin
Revenue

Adjustment

Segment OI
Revenue

Consolidated total

Segment OI
OI margin

341.9
29.8

360.0
31.1

8.7%

8.6%

189.9
23.1

198.0
23.6

12.2%

11.9%

160.0
21.0

173.0
24.8

13.1%

14.3%

102.0
8.9

106.0
10.2

8.7%

9.6%

23.9
5.1

28.0
7.4

21.6%

26.4%

0.2
-0.8

―
-1.1

818.2
87.2

865.0
96.0

10.7%

11.1%

41.6%
32.4%

22.9%
24.6%

20.0%
25.8%

12.3%
10.6%

3.2%
7.7%

―
-1.1%
100.0%
100.0%* Reclassified：As a result of the reclassification of segment classifications in FYE2022, figure for FYE2021 has been restated using the new segment aggregation standards.

16

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

3. FYE2022 Business Plan

Segment operating income (FYE2021 full-term forecast)●The duration period for COVID-19 is difficult to predict, given the uncertainty of the vaccine rollout and administration of the immunization
process. However, in the Industrial Gases, Electronics Businesses, and Thermos Businesses in each global region, we are adapting to therespective business environments to achieve strong growth. We will implement action plans, employ capital through investments andacquisition, and make it a year that will lead to the next medium-term management plan.
●IFRS Core Operating income forecast by segment（Unit：￥ bn.）

3.8

0.5

87.2

FYE2021
Actual17

1.3

Gas businessin Japan

Including Forex
Positive impact 0.1

1.3

Gas business
in Europe

Gas businessin A&OMay 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results（YoY +8.8）

0.3

Including Forex
Negative impact 0.2

Gas businessin the U.S.

96.0

2.3

Thermosbusiness

Adjustment

FYE2022
Forecast

3. FYE2022 Business Plan

Cash flow (FYE2022 full-term forecast)
Utilize strong and resilient cash flows to reduce debt, invest in the future, and provide shareholder dividends（Unit：¥ bn.）

73.4

53.5

91.0

End of FYE2021

14.6

Free Cash flow*１

Beginning cash

Scheduled
debt maturities*2（Actual）*1

Free cash flow：Cash flows from operating activities + (Announced) Divesture Proceeds – CAPEX.

*2

Scheduled debt maturities：Indicates cash paid (including Repayments of lease obligations)18

Annualdividend

94.8
1.4

Forex
effectEnd of FYE2022
End cash（Forecast）
Please refer to Appendix_P.26.

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

3. FYE2022 Business Plan

Capital allocation policy for FYE2022
We will generate cash through efficient operations, adapting to changes in the business environment,
and initiating productivity and cost management actions. We will allocate capital to provide maximum
value to our customers and shareholders, keeping in mind the balance of financial soundness, growthinvestment, and shareholder returns.
Financial soundness

Growth investment

Shareholder Returns

Early decrease of leverage

Investment for Growth driver

Stable & business performance-linked

Forecast
Adjusted net D/E Ratio(End of FYE2022)

CAPEX and investment

Forecast

Forecast
annual dividend
(￥)

1.01

80.0

(Cash basis: ¥ bn.)
Approx.

32

Dividend payout ratio

Approx.24%

19

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

3. FYE2022 Business Plan

Business strategies to realize a Carbon neutral society●Expected corporate value
In response to the global trend toward a Carbon neutral society

Contributing to the realization of Carbon neutrality by 2050
●Major issues for our group (areas in which our group is actively involved)

Greenhouse Gas (GHG) emissions generated
by our business activities

GHG emissions generated
by customers' manufacturing activities

・The majority of our Group's greenhouse gas emissions areaccounted for by electricity consumed by industrial gas
production facilities, including emissions from thetransportation of vehicles supplied with bulk and packaged
supplies.

・Customers' greenhouse gas emissions can be expected tocontribute to control and reduction through the effective useof our gas utilization technologies and industrial gases.

・DX will be used to reduce power consumption andimprove transport efficiency.

Shift power
consumption to more
renewable resources
to become more
Green*1

Efficiency
improvement In
production andlogistics

・We can expect to use DX to solve customer problems andimprove productivity with our gas utilization technology.

Further pursuit in
Combustion efficiency

Promotion of
initiatives in CCUS*2

Industrial Reform of Next-Generation Energy

In order to reduce greenhouse gas emissions from the use ofexisting energy sources such as coal, oil, and natural gas,
there is a need to reform industries toward the spread ofnext-generation energy.

Global HyCO teamis actively working
on new initiatives
and opportunities*1 more Green: A method to utilize a mechanism to trade the environmental added value of electricity generated by renewable energy through a review of contracts and a system in which a certificate issuing company obtains certification from a third-party certification organization, etc.
*2 CCUS : Carbon dioxide Capture, Utilization and Storage.

20

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

Taking inventory
regarding in-housecarbon neutral related
technologies

3. FYE2022 Business Plan

Business opportunities for realizing a Carbon neutral society●Evaluation of business potential in each global region●Our group’s solutions that we expect to contribute to a Carbon neutral society

Efforts to realize a carbon-free society are linked to industrial structure, economic
policies such as governments and political and economic alliances in each country.
Therefore, our business expectations differ in each global region.

Our Contribution Technology [Gas Application & Gas Engineering]
Joint project to develop renewable energy offshore H2 production and supply infrastructure［in Japan］

Ammonia(NH3) mixture burner［in Japan］

Ammonia combustion technology contributes to
CO2 emission reduction in industrial furnaces
European
operating companies

In line with the European Green Deal, the European New Industrial Strategy, and the New
Recycling-Oriented Economic Action Program *1, efforts and momentum to de-carbon in
Europe are accelerating.
Our Group views this trend as a new opportunity, and has established a project to share thecharacteristics and strengths of each pole in this field with each other and pursue businesspossibilities.
For example, we are responding to the demands of society by combining technologies,
knowledge, and experience within the Group to meet the needs of society, such as thepossibility of further utilizing hydrogen, such as additives, fuels, and energy when making steel,and the need for proposals to solve carbon de-carbon issues at customers.
メタン-アンモニア30%混焼*1 （Reference）A European Green Deal（European Commission website）： https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal_en
Source(in Japanese)： JETRO｢Outline of European Green Deal and Rules Formulation and Corporate Activities of the European Union and Member Countries Concerning Recycling-Oriented Plastics Strategies (March 2020)｣
https://www.jetro.go.jp/world/reports/2020/01/a4731e6fb00a9859.html

21

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

HyCO business（H2 production and supply）［in the U.S.］

Closing remarks

Member of the Board,
Executive Vice President
Toshihiko Hamada

22

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

Q&A Session

Representative Director,
President CEO

Member of the Board,
Executive Vice President

Yujiro Ichihara

Toshihiko Hamada

Member of the Board,
Representative Director
and President of Taiyo
Nippon Sanso Corporation

President, Thermos K.K.
Keiichiro Chujo

Kenji Nagata

23

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

Executive Officer,
Group Corporate Planning
OfficeTsutomu Moroishi

Executive Officer,
Group Technological
Affairs & Environment
Office, and CSO
Takeshi Miki

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

Appendix

25

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

Free cash flow and Debt situation（Unit：￥ bn.）

FYE2020

FYE2021full-termfull-term

YoY

Forecast's YoY

FYE2022

Difference% change

full-term forecast

Difference% change

-1.8%

86.0

+8.3

+10.7%

Income before income taxes

79.1

77.7

-1.4

Depreciation and amortization

83.7

86.3

+2.6

87.0

+0.7

Changes in working capital

3.1

0.5

-2.6

-4.8

-5.3

Others

-16.0

-15.3

+0.7

-14.3

+1.0

Cas h f lows f rom operat ing ac t iv it ies

150. 0149. 2-0. 8

153. 8+ 4. 6

Capital expenditures

-72.8

-60.0

+12.8

-77.3

-17.3

Investments and loans

-0.5

-0.7

-0.2

-

-

Others (asset sales, etc.)

10.7

1.1

-9.6

-3.0

-4.1

Cas h f lows f rom inv es t ing ac t iv it ies-62. 6-59. 6+ 3. 0-4. 7%-80. 4-20. 8+ 34. 7%

Free c as h f low

87. 4

89. 5

+ 2. 1+ 2. 4%73. 4-16. 1-18. 0%Net interest-bearing liabilities

898.3

858.1

-40.2

785.8

-72.3 *（Of which, hybrid financing amount）

250.0

250.0

+0.0

250.0

+0.0

Adjusted net D/E ratio

1.45

1.15

-0.30

1.01

-0.14

-0. 6%(Debt s it uat ion）

* This amount includes a decrease of ¥17.5 bn. due to the effect of foreign currency translation.

26

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results+ 3. 1%

Debt/Equity Ratio（Our finance soundness indicator）
Net D/E ratio

Adjusted
net D/E ratio（General net D/E ratio）（Our indicators that have been disclosed）（Our internal financial discipline indicator）

End of FYE2021

End of FYE2021

End of FYE2021

1.67

1.15

1.09

Net interest-bearing debt

Net interest-bearing debt ― Equity-type debt*

Net interest-bearing debt
― Lease obligations ― Equity-type debt*

Total equity attributable to owners of parent

Total equity attributable to owners of parent + Equity-type debt** Equity-type debt：Our internal name of amount which is 50% of the amount raised through hybrid financing (¥250 bn.) is accepted as "capital" by rating agencies.

27

Financial management
net D/E ratio

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

Total equity attributable to owners of parent― Other components of equity + Equity-type debt*

Business performance over the past five years
Revenue

581.5

646.2

（¥ bn.）

740.3

850.2

818.2

Operating income（IFRS）
OI margin

9.2%

9.3%

9.0%

（¥ bn.）

11.0%

10.9%

2017.32018.32019.32020.3

Net interest-bearing debts

2021.3（¥ bn.）

53.6

2017.32018.3NI margin

34.7

2020.3

Capital expenditures

5.6%（¥ bn.）

6.3%

6.7%

88.8

66.8

2019.3

7.6%

6.0%

93.9
59.8

Profit attributableto owners of the parent

2021.3（¥ bn.）

2017.3

48.9

2018.3

41.2

2019.3

53.3

55.2

2020.32021.3

Depreciation
and amortization（¥ bn.）

Hybrid Finance (HBF)Net debt excluding HBF

Adjusted net D/E ratio*

1.54

83.7

1.45

76.6

1.15

72.8

62.5

60.0

43.7
695.7

648.3

608.1

304.3

274.9

250.0

250.0

250.0

2017.32018.32019.32020.32021.3*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.

28

2017.32018.32019.32020.32021.3*It’s recorded on a construction basis until FYE2019 and on a cash basis from FYE2020 onwards.

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

86.3

56.1
40.0

43.2

2017.32018.32019.32020.32021.3

Representative Industrial Gases supply mode
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

We’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

OxygenO2RefineryRefining by-product gas from chemical factories and gas transported overseas

Bulk

CO2

Major supply destination（Sector）

NitrogenN2

Tank truck
Argon
Ar

Automobile

Shipbuilding

Construction
machinery

Pharmaceutical
MedicalManufacturing
Glass/Paper
Food/
beverage

LCP

Solar cell

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
Flatbed truck

Supply via Cylinder

29

Filling station

Major supply destination（Sector）

HomecareEngineeringdevelopment

Advanced
medicine

Sanitation

R&D

Construction/
Installation

Flatbed truck

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

（ Small-scale supply）

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

Supply via CylinderLP
Gas

Thermos products deliver what matters every time.
As the leading manufacturer of convenient insulated product for over 100 years,
Thermos is trusted by consumers to provide innovative portable containers that
promote a safe and healthy lifestyle.
Thermos delivers when it matters.
At Thermos, We carefully choose the best available materials,
and produce products with consistent quality and reliable performance.
We ensure the excellence of our products by testing for quality.

30

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

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
Annual Shareholder meeting

June 18, 2021

Q1 FYE2022 Earnings Call

July 30, 2021

www.nipponsanso-hd.co.jp/en/
NIPPON SANSO Holdings Corporation (Ticker:4091.T)
Headquarters：1-3-26 Koyama Shinagawa-ku, Tokyo 142-0062, Japan31

May 20, 2021 | NIPPON SANSO Holdings Analyst Conference presentation FYE2021 results

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