BofA Securities｜2022 Hydrogen Conference
Corporate Presentation
December 14, 2022 [US]Tokyo (Japan) with the United States

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”).

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December 14, 2022 | NIPPON SANSO Holdings Corporation | BofA Securities | 2022 Hydrogen ConferenceGroup Overview
NSHD’s Group operating structure
Nippon Sanso Holdings Corporation
Company name(NSHD)

Ticker (Tokyo Stock Exchange)

4091.TGas businessin Japan

Thermos business
Established

October 30, 1910

Head office

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

President CEO

Taiyo Nippon Sanso
Corporation group

Nippon Sanso
Holdings
Corporation

Toshihiko Hamada

Employees [As of March 31, 2022]

19,398Gas businessin Asia and Oceania

Gas businessin the U.S.

Revenue (￥bn.) [FYE2022]

957.1

Asia/Oceania region
group companies

Matheson Tri-Gas, Inc.
group

Operating income (￥bn.)

3

Thermos K.K. group[FYE2022]

101.1

OI margin [FYE2022]

10.6%Countries Served

32 Countries and Areas

December 14, 2022 | NIPPON SANSO Holdings Corporation | BofA Securities | 2022 Hydrogen Conference

Gas business
in Europe
Nippon Gases
Euro-Holding S.L.U.
group

Global Business Network*Figures for each segment are for FYE2022.

Japan

The U.S.

Revenue

Revenue¥ 372.0bn.

¥ 224.8bn.

39%

23%
The U.S.

EuropeJapan

Europe 20%
RevenueAsia¥ 209.7bn.
22%

13%

A&O
Revenue¥ 123.5bn.
13%

4

Oceania

Revenue

Total Revenue¥ 26.8bn.

¥ 957.1bn.

3%

December 14, 2022 | NIPPON SANSO Holdings Corporation | BofA Securities | 2022 Hydrogen Conference

Total Sales Ratio

100%

23%

Our key businesses
Electronics

Industrial Gas

Main Products

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

Main Products

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

December 14, 2022 | NIPPON SANSO Holdings Corporation | BofA Securities | 2022 Hydrogen Conference

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

Global HYCO
Development and Value Creation
U.S.

• Select partnerships• Technology per project solution and EPC per
focus geography• Matheson/NSHD Plant/Ops Standards• HyCO Solutions Expertise to deliver value

Global HYCO
Operations

Markets & Bus Dev

EuropeJapan
Process Engineering
Standards & Projects• Best-in-class lifecycle operations• Fleet reliability > 99.5%• Leading, uncompromising safety performance

Asia ＆
Oceania• Performance through Collaboration•

Field Staff and Experts•

Remote Operations Center (ROC) & Tools•

HYCO Process & Project Experts• Continuous feedback into plant design,
instrumentation & controls(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 14, 2022 | NIPPON SANSO Holdings Corporation | BofA Securities | 2022 Hydrogen ConferenceStrategic Themes for NSHD and HYCO
• Lower Carbon-Intensity of industrial gas production of existing business●‣ Improvements in operational efficiency and power management to reduce “carbon footprint”
and improve operational costs●• Enlarge footprint of NSHD/Matheson’s Hydrogen business, leveraging Global HYCO’s commercial
and technical expertise‣ Expand our basis of HYCO business into new geographies, establishing plants with state-of-the-art configurations‣ Establish HYCO solutions that are optimally integrated with Customer Processes to minimize overall GHG footprint– Customer process – HYCO integration design with the ability to develop commercially viable solutions– Work with customers toward the production of environmentally-friendly products,
such as renewable fuels and bioplastics‣ Based on discriminative assessments, select specific HyCO production technologies
for further development to achieve gases supply with mitigated carbon footprint●• Development of select industrial gas applications technologies and supporting capabilities to help customers
meet their Carbon Neutral goals

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December 14, 2022 | NIPPON SANSO Holdings Corporation | BofA Securities | 2022 Hydrogen ConferenceHyCO/Hydrogen Development Pillars●• Three Pillars for Near-Term and Future Development in HyCO

I. Expand HYCO Business StrategicallyII. HyCO Integrated with Customer Processes

III. Assessment and Development of step-change HyCO technologies• Our approach to growth only includes implementation of technologies that we deem economically acceptable.
●
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December 14, 2022 | NIPPON SANSO Holdings Corporation | BofA Securities | 2022 Hydrogen Conference

I. Expand Strategically – Recent Developments
HYCO for the Production of Improved Fuels and Chemicals• Matheson/NSHD Secures Very Large Award in India●• 20-Year Supply Award from NRL, Numaligarh, for 132 kNm3/hr (285 Tons/day) Hydrogen & steam; Solution development focused on mostefficient/Low CI Hydrogen solution for diverse feedstock slate (RLNG, LPG, Naphtha)• Hydrogen integral to the Govt. of India’s mega northeast development initiative led by NRL involving the India-Bangladesh Friendship Pipeline,
interstate Pardip-Numaligarh Crude pipeline project, import crude terminal, interstate product pipeline and 2G ethanol projects• Matheson/NSHD Establishing Peru Business●• 20-Year Supply Agreement executed for supply of “Over the Fence” Hydrogen and Nitrogen to Petroperu.

•

9

•

Gases will be utilized for the new state-of-the art Refinery designed from a Sustainability perspective by Petroperu at Talara for ULSD/RG•

One of the largest, most sophisticated hydrogen plants in South America; Designed with great attention to feedstock flexibility and water conservation

Petroperu and EPC Contractors completing gas plant complex and Matheson HYCO have been supporting Petroperu
on Plant Commissioning /Startup.

December 14, 2022 | NIPPON SANSO Holdings Corporation | BofA Securities | 2022 Hydrogen ConferenceII. HYCO Integration with Customer Processes
Utilization of HYCO Configuration Capability to Establish Best-in-Class HYCO integrated with Customer Processes• Focus Segments include Petrochemicals, Renewable Fuels, Steel Production and specialized cases in other industries• Recovery and reutilization of waste streams and energy integration to achieve best in class efficiency

Segment Example: Renewable Transport Fuels Segment• Renewable Diesel is emerging as the most cost-effective and easily implemented Carbon-Mitigation approach in themedium/heavy duty transport sectors• Sustainable Aviation Fuel (SAF) emerging as the promising alternative to reduce emission in the aviation sector. SAF can beproduce from multiple renewable sources; including renewable ethanol. Market and H2 consumption moderate• Renewable fuel processes require hydrogen to hydrotreat feedstocks• Recent incentives in the USA (Inflation Reduction Act “IRA”) further incentivize
the production of renewable H2 (up to 3$/kg H2) for renewable fuel/jet production;
as well as the carbon capture and sequestration (credit increased to 130 $/Ton)•

Framework implementation yet to be fully defined and can be complex (e.g., credits forH2 production and CO2 capture are mutually exclusive)• Renewable H2 faces challenges: high cost, limit volume, logistics, etc.

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December 14, 2022 | NIPPON SANSO Holdings Corporation | BofA Securities | 2022 Hydrogen Conference

Renewable Fuel Production UnitII. HYCO Integrated with Renewable Diesel• NSHD/Matheson worked with Fuels Company and developed an Integrated HYCO Scheme●for Hydrogen Supply for new, Renewable Diesel Plant being established in the southeast USA• Long-term Supply Agreement and supporting Contracts executed during summer 2022
Steam to Refinery

Renewable
Feedstock

Natural Gas(start-up/back-up)

NSHD/Matheson
Hydrogen
Production

HP Hydrogen

LP Hydrogen

Renewable Diesel
Plant

Renewable Diesel

Renewable Byproducts (C1-C10) as Primary Feed and Fuel to SMR• HYCO plant will have significant feedstock/fuel flexibility and H2 capacity exceeding 30 MMSCFD*●* MMSCFD: million standard cubic feet per day

11

December 14, 2022 | NIPPON SANSO Holdings Corporation | BofA Securities | 2022 Hydrogen ConferenceIII. Technology Evolution - I• Green hydrogen is limited to production
by electrolysis of water without use of fossil fuels• Smaller green hydrogen supply continue to be morecompetitive than large schemes• Inflation Reduction Act is a potential associatedgame changer for the US• Source of green (renewable) power infrastructure isa key challenge

Hydrogen Production – Key Technologies & Benchmarking
Steam Methane Reforming

6,000

USD/MT H2

Hydrogen “Green” Technologies Assessment

5,000Electrolysis

Infrastructure
Feedstock & Util.

Hypothetical Case
25X today’s largest plant

4,513

4,212

4,171

4,000

3,000
2,000

2,535
1,347

+78%

Natural gas -50%
in North America

3,008

1,821
1,136

1,000

1,189
0
3,200 Nm3/h

CO2 Emissions
MT CO 2 /MT H 2

3,008

1,504

1,203

1,162

3,200 Nm3/h

30,000 Nm3/h

100,000 Nm3/h(16 MW)(150 MW)(500 MW)

1,563
1,114

685

449

30,000 Nm3/h

100,000 Nm3/h

9.3

+167%

+131%

3,008

Break Even at>200 USD/MT “Carbon Tax”

USA 25.0 / 16.7 Europe Gridzero if 100% renewable

Nat gas: $20/MWh ($6/mmbtu), Power: $50 $/MWh, Grid Carbon intensity: USA 0.45, Europe 0.30 kg CO2e/kWh

CO2 Recovery Technology Assessments• Liquid amine scrubbing has been the most widely used technology due to proven commercial experience• Alternate technology options based on CO2 adsorption from flue gas using pressure, vacuum, and thermal swing adsorption.
• Total cost of CO2 recovery is highly dependent on size of the unit and location specifics•

Liquid amine scrubbing system total costs (Capex+Opex) in the range, $50 to $80+ per Ton of recovered CO2 recovered (w/o CO2 compression)•Developing adsorption-based options have potential to have economics in the range, $35 to $60 per Ton recovered CO 2 (w/o CO2 compression)•

NSHD subsidiaries and HYCO also continue to track membrane-based options for specific cases• Matheson/NSHD HYCO will utilize options as suitable for our projects compatible with CCU/CCS
12

December 14, 2022 | NIPPON SANSO Holdings Corporation | BofA Securities | 2022 Hydrogen ConferenceIII. Technology Evolution - IIAlliance with Hysytech• Nippon Gases Europe (NGE) , NSHD’s European business, has formed an alliance with Italy-based company
Hysytech to promote the development and use of green chemistry and alternative biofuelswith the ultimate goal of establishing a circular economy.
• Hysytech specializes in the design, development and industrial implementation of new turn-key process
technologies and equipment including bio-methane and bio-LNG and green and low CI Hydrogen.

Partnership with Sysadvance• Portugal-based company partnering with Nippon Gases Europe• Specialize in PSA-based technology to purify biogas from anaerobic digestion sources• Ability to produce bio-methane and recover CO2

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December 14, 2022 | NIPPON SANSO Holdings Corporation | BofA Securities | 2022 Hydrogen ConferenceSummary

Establishment• NSHD’s HYCO established very safe, highly reliable Plant Operations and Supply integrated across the corporation• Plant Standards established for different types of HyCO technology to enable robust plant designs for the future• HyCO Solutions capability and tools established including sustainability focus and winning target projects• NSHD HyCO’s efforts have led to the execution of multiple, strong, long-term contracts with top-tier and dynamic
customers using sustainable solutions with profitable growth
GrowthFuture14• Business Objectives include:• Continue business/footprint establishment in growth geographies• Business positions involving step-out carbon-mitigated solutions in specific market segments in the US/EU/Japan• Strategic alliances on specific production and applications technologies associated with Carbon-Neutral solutions,provided the overall economics are compelling

December 14, 2022 | NIPPON SANSO Holdings Corporation | BofA Securities | 2022 Hydrogen Conference

Q&A Session

Head,
Global HYCO and Operations,
Matheson-Tri Gas, Inc.
Raghu Menon

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

16

December 14, 2022 | NIPPON SANSO Holdings Corporation | BofA Securities | 2022 Hydrogen ConferenceAppendix

17

December 14, 2022 | NIPPON SANSO Holdings Corporation | BofA Securities | 2022 Hydrogen Conference

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%

18

US

Revenue¥1,160.0 bn.

Operating income¥113.0 bn.

23%

23%

Japan

FYE2023 Financial Forecast（IFRS)EuropeAsia & Oceania

Thermos

Corporate

December 14, 2022 | NIPPON SANSO Holdings Corporation | BofA Securities | 2022 Hydrogen Conference

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＞

19

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 14, 2022 | NIPPON SANSO Holdings Corporation | BofA Securities | 2022 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

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.

20

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

December 14, 2022 | NIPPON SANSO Holdings Corporation | BofA Securities | 2022 Hydrogen Conference

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 Cylinder21（ Small-scale supply）

Supply via Cylinder

December 14, 2022 | NIPPON SANSO Holdings Corporation | BofA Securities | 2022 Hydrogen ConferenceLP
Gas

For further information, please contact:

Investor Relations for investors

Upcoming IR events
Q3 FYE2023 Earnings Call

Investor Relations, Group Finance & Accounting OfficeTel: +81 (0)3-5788-8512
E-mail：Nshd.ir@nipponsanso-hd.co.jp

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, Japan

22

December 14, 2022 | NIPPON SANSO Holdings Corporation | BofA Securities | 2022 Hydrogen ConferenceⒸ 2022 NIPPON SANSO Holdings Corporation All rights reserved