Q4 FYE2023
Consolidated Financial Results
Earnings Announcement（ Fiscal year ended March 31, 2023 ）May 11, 2023
Tokyo（Japan）

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

2

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

Notes● Analysis of Operating Results (Reasons for change in Revenue and Segment Operating Income)In the supplementary materials to the financial statements of NSHD, starting from the fiscal year ending March 31, 2022, NSHD will describe the status of the business results of NSHD
group on a quarterly consolidated accounting period basis, as well as its recognition and analysis of the status of the business results of NSHD group from management's perspective.
Please note that Segment Operating Income is based on Core Operating Income.

● The following table shows Revenue, Operating income, and the effect of Forex rate changes on Revenue and Operating Income.
The impact of Forex rate fluctuation is calculated by applying the average rate for the period under review to the period under review (the current period and the previous period).
These disclosures are not in accordance with International Financial Reporting Standards (IFRS). However, we believe that these disclosures are useful analytical information for investors
to understand the business conditions of the Group.
＜Forex rates＞

Assumption

Unit：¥ bn.

（Reference）
Currency sensitivity
as rough indication
Impact of devaluation by 1 JPY(Full-term basis)（Apr.-Mar.）

Currency

Revenue

Average Forex rates
FYE2022

FYE2023

FYE2024
Full-term

Unit：JPY

1Q

1st Half

9M

Full-term

1Q

1st Half

9M

Full-term

Currency（Apr.-Jun.）（Apr.-Sep.）（Apr.-Dec.）（Apr.-Mar.）（Apr.-Jun.）（Apr.-Sep.）（Apr.-Dec.）（Apr.-Mar.）

Core Operating Income(Announced on May 11, 2023)

USD

109.76110.10111.45113.04131.25135.30136.85136.00

130

USD

+2.2

+0.28

EUR

132.44131.16130.96131.11138.75139.14140.83141.62

140

EUR

+1.9

+0.25

SGD

82.41

82.01

82.77

83.83

94.97

97.12

98.61

99.05

97.1

AUD

84.15

82.33

82.69

83.33

92.52

93.51

93.16

92.67

93.5

CNY

17.06

17.07

17.35

17.65

19.71

19.91

19.81

19.71

19.9

● Presentation of overall business performance and segment performance
The amounts shown are after offsetting and elimination of inter-segment transactions and do not include consumption tax etc.
Notes that from Q3 FYE2023, the reportable segment names simplified, but the scope of segment aggregation didn’t change.

3

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

Contents

1.

Strategic overview

2.

Q4 FYE2023 Business performance-1. Q4 Quarter Period performance-2. Full-term Cumulative performance

3.

FYE2024 Full-term Forecast

Appendix

4

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

1. Strategic overview

5

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

1. Strategic overview

Our Medium-term Management plan:

NS Vision 2026 | Enabling the FutureGroup Philosophy

Proactive. Innovative. Collaborative.
Making life better through gas technology.
The Gas Professionals
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.

6

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

1. Strategic overview

Action policy: Exploring new business toward carbon neutrality
Operating company relationships with customers and various partners allow us to enhance value to the customer with quick
resolution to customer issues (quick wins). The collaboration throughout the group enables us to improve our global
technologies and knowledge and at the same time improve our probability of project wins.
CN
Communication infrastructure
Learn more

MarketHead（Japan-U.S.-Europe Mixed Team）
Head

9 segments
CN Global
Experts

Existing

Steering Committee

CN Global
Executive TeamThe U.S.

Technology

4 fields

EuropeAsia &
Oceania
Regional CN
Working Group7

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

Potential

CN

Partners

Deepening
relationship

Co-creation

ResolvingissuesCo-R&D

Building
relationshipTechnology
exploration

Proposingsolutions

Performance
surveyJapan

Collaboration

NSHD

Customers

Pursue Customer satisfaction（Value creation: Meet Expectations ）1. Strategic overview

Progress: Quick wins in Europe
Nippon Gases Europe will continue to seize carbon neutrality opportunities, we aim to expand our business by investigating
market trends, maintaining close communication with customers, and providing solutions that deepen customer stickiness.
Strategic alliances to add Value provided for customers

Participate in first Green H2 production project in Belgium（Released in Nov. 2022 ）（Released in Apr. 2023）

ZelzateFlemish Hydrogen vision

Belgium
Production & supply of Green H2from renewable energy sources*（Production scheduled to start in early 2025）

・Technology company specialized in Green technologies(e.g., technology for separating and refining bio-methane from bio-gas, etc.)

・Identify new value creation through the Company's chemical processing
and cryogenic technologies, knowledge of gas recovery & refining applied
to bio-fuel production & waste power generation, together with our own
technologies.
（Released in Dec. 2021）

TERRANOVA HYDROGEN（Joint Venture）

・Design & Engineering
・Project Management

・Combining the Company's knowledge of hydrogen combustion in industrial
furnaces (Hydrogen burner) with our own technology, the company aims to
reduce CO2 emissions, a key issue for the steel industry.
・Project Leader of H-ACERO Project. ArcelorMittal and other global
companies are also members* Terranova location in Zelzate Manufactured using green power from solar and onshore wind generation

8

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

1. Strategic overview

Action policy: Operational excellence
In order to realize our Group vision, we gather best practices by region to improve the collective strength of the team.
From Customer perspective

Promote Sustainability

Increase industrial productivity.

Enhance human well-being
and contribute to a more sustainable future.

・Reduce waste and lower costs
・Maintain quality＞Provide reliable products & services

・Identify and meet customer requirements＞Reduce environmental impact

The regional programs aiming for¥56 bn. or more* Cost reductionin 4-yr period in NS Vision 2026
“Profitability”“The Right Way”

Japan

The U.S.

“Shiba Productivity”“Productivity”

Asia &
Oceania

EuropeExecute the program
Pursue Operational excellence（Fostering a superior corporate culture）

Ongoing HR development

Management by objective

Continuous improvement

・Share Productivity Improvement
practices and approaches
・Develop Project management leaders・Top down goal setting
・Identification of waste reduction

・Support goal achievement and recognition
・Utilization of best practices

Improved profitability
NS Vision2026 Financial KPI target in the final fiscal year
EBITDA margin（Group）： 24％ or more

Executives & Operation team work together
to analyze the practices & cost structure,and use scientific methods to enhance
productivity and profitability.
* Total amount of cost reductions compared to the previous fiscal year, not including the impact of cost inflation and other cost increases.

9

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

Segments share, learn, and modify best businesspractices & operational excellence activities

1. Strategic overview

Progress: Programs for streamlining & efficiency in the U.S. & Europe
Our productivity programs, which are critical to our profit generation, utilize LSS* to analyze processes, identify inefficiencies,and enable quick corrective resolution. The thousands of projects that initiated over the years are shared as best practices
and improve the profitability of the entire group.

Europe：“Productivity”

The U.S.：“The Right Way（TRW）”

Management
Process Unit

①Bulk production②Package gas operation③Specialty gas operation④Distribution ⑤Corporate ⑥HyCO⑦Liquid CO2/Dry ice⑧Procurement

Annual performance targets are set for individual business units including
performance-linked compensation.

* LSS（Lean Six Sigma）： World-standard methods for Quantitative process and Quality improvement

10

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

Management
Process Unit

①Customer service ②Bulk distribution③Packaged gas distribution ④Finance⑤Healthcare⑥IT⑦Marketing & Sales ⑧Procurement⑨Bulk production⑩ Packaged production

The productivity system is based on continuous improvement and utilizationof digital data

1. Strategic overview

Key CAPEX for our sustainable growth
There are many growth opportunities and our diversified capital portfolio is aligned with our medium term plan NS Vision 2026.

（色使いの関係で、Q

左記ドーナツチャート

9%“Others" include projects which are notassignable because the facilities relate to a wide
range of customers and no one specific market（e.g.）･ New or expanded production basefor Bulk business･ Shipping container for liquefied helium

By Industry

28%
Industrial

FYE202324%（as of the end of Q4）

Approx.

¥120bn.*

Of which Environmental &Hydrogen society contribution related

50%

0.5%

“Environmental & Hydrogen society contribution
Total
related” includes projects that contribute to our group
換算レート（ご参考）and the customers' efforts to become carbon
neutrality.
（e.g.） ・Modernizing our plants to100state-of-the-art equipment
190
・Hydrogen production related
Industry（HyCO Plant, and Green hydrogenByJV）

38%
Steel & Metals

Electronics

Industrial

Healthcare

Chemicals & Energy

Note that the above is an aggregation of investments which have been approved by the Board of directors of each our group company, but have not yet been placed in service.
The size of each project is over approx. ¥500mn., $4mn. or €4mn.
* Converted to JPY using the average exchange rate for the Q4 of the FYE2023, as shown in the Notes (Please see p.3).

11

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

Others1. Strategic overview

Key Highlights

Respond flexibly against cost fluctuations, including inflation
Acquire Carbon Neutrality-related business opportunities

Pursuing project wins and building backlog
Focus on productivity and pricing
Weak JPY boosted Revenue & Operating Income

12

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

2. Q4 FYE2023
Business performance-1. Q4 Quarter Period performance13

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

2. Q4 FYE2023 Business performance -1. Q4 Quarter Period performance

Consolidated results（Unit: ￥ bn.）

FYE2022Q4FYE2023
Q4(Jan.-Mar.)(Jan.-Mar.)

YoY
Difference％ Change

Revenue

265.6

313.6

+48.0

+18.1%

Core operating income

26.3

35.5

+9.2

+34.8%

9.9%

11.3%

Non-recurring profit and loss

-1.4

-0.4

+1.0

Operating income（ IFRS）

24.9

35.1

+10.2

9.4%
19.0%

11.2%
19.9%

-2.3

-4.3

-2.0

Income before income taxes
Income tax expenses

22.6

30.7

+8.1

7.9

9.1

+1.2

Net income

14.6

21.5

+6.9

+47.3%

13.9

20.6

+6.7

+48.1%

5.3%

6.6%

0.6

0.8

Core OI margin

OI margin
EBITDA margin

Finance costs+40.9%+35.9%(Attribution of net income)Net incom e attributable to owners of the parent

NI margin
Net income attributable to non-controlling interests

14

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results+0.2

2. Q4 FYE2023 Business performance -1. Q4 Quarter Period performance

Japan
YoY

（Unit: ￥ bn.）

Revenue
Segment income
Segment OI margin

FYE2022

FYE2023

Q4(Jan.-Mar.)

Q4(Jan.-Mar.)% Change
Difference% Change

105.2

119.9

+14.7

+13.9%+13.8%

8.4

11.5

+3.1

+36.4%+36.4%

8.0%

9.6%

YoY Factors for increase/decrease in this quarterly period and other comment
・ Bulk & On-Site (Air separation gases): Volume decreased, but revenue increased due to price revisions. Energy costs increased significantly.
・ Bulk (LP gas): Despite the impact of higher selling prices which are linked to purchase price, Revenue decreased due to lower volume,
・ Specialty gases: Shipment volumes for electronic industry were firm.
・ Equipment and installation, other: Revenue of industrial gas-related were flat, but revenue of electronics-related increased sharply.
● EBITDA margin: 13.7% (FYE2023 Q4)

15exc. FXMay 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

2. Q4 FYE2023 Business performance -1. Q4 Quarter Period performance

United States
YoY（Unit: ￥ bn.）

FYE2022

FYE2023

Q4(Jan.-Mar.)

Q4(Jan.-Mar.)% Change
Difference% Change

Revenue

60.5

79.4

+18.9

+31.2%+15.5%

Segment income

6.8

10.9

+4.1

+59.6%+39.6%

11.4%

13.8%

Segment OI margin

YoY Factors for increase/decrease in this quarterly period and other comment
・ Bulk & Packaged: Price revision activities contributed significantly to the business performance. While demand remains stable, costs have risen
from general inflation and high energy and distribution costs. Gradual improvement in driver shortage, but headwind in cost remains.
・ On-site: Shipment volumes declined as a result of lower customer requirements.
・ Equipment and installation, other: Demand was favorable in welding and cutting related fields.
● EBITDA margin: 26.4% (FYE2023 Q4)

16exc. FXMay 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

2. Q4 FYE2023 Business performance -1. Q4 Quarter Period performance

EuropeYoY（Unit: ￥ bn.）

FYE2022

FYE2023

Q4(Jan.-Mar.)

Q4(Jan.-Mar.)% Change
Difference

exc. FX

Revenue

60.5

69.5

+9.0

+15.0%+5.0%

Segment income

6.8

9.5

+2.7

+38.5%+26.3%

11.4%

13.7%

Segment OI margin

YoY Factors for increase/decrease in this quarterly period and other comment
・ Packaged: Shipment volume decreased but revenue increased due to price revisions.
・ Bulk and on-site: Demand decreased significantly in the manufacturing industry. Revenue of bulk increased due to price revisions.
・ Equipment and installation, other: Revenue of gas-related equipment increased.
● EBITDA margin: 27.0% (FYE2023 Q4)17% Change

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

2. Q4 FYE2023 Business performance -1. Q4 Quarter Period performance

Asia & Oceania
YoY（Unit: ￥ bn.）

FYE2022

FYE2023

Q4(Jan.-Mar.)

Q4(Jan.-Mar.)% Change
Difference% Change

Revenue

32.7

37.0

+4.3

+13.3%+3.8%

Segment income

3.1

3.1

+0.0

+1.3%

-8.5%

9.5%

8.5%

Segment OI margin

YoY Factors for increase/decrease in this quarterly period and other comment
・ Bulk gas: Demand remains firm.
・ Bulk (LP gas): In Australia, revenue increased due to an increase in volume.
・ Specialty gases: Shipment volumes for electronics industry in some areas of East Asia decreased.
・ Equipment and installation, other: In industrial gas-related business, sales decreased in Singapore. In electronics-related business, sales were flat.
● EBITDA margin: 14.8% (FYE2023 Q4)18exc. FXMay 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

2. Q4 FYE2023 Business performance -1. Q4 Quarter Period performance

Thermos
YoY（Unit: ￥ bn.）

FYE2022

FYE2023

Q4(Jan.-Mar.)

Q4(Jan.-Mar.)% Change
Difference% Change

Revenue

6.4

7.5

+1.1

+16.4%+14.5%

Segment income

1.4

1.5

+0.1

+3.9%

+2.0%

22.9%

20.5%

Segment OI margin

YoY Factors for increase/decrease in this quarterly period and other comment
・ Japan: Revenue of main products; portable mugs and sports bottles as well as kitchenware such as frying pans were strong.
In addition, raw material and manufacturing costs increased because of mainly due to inflation and the weak JPY.
・ Asia: Revenue in South Korea were flat. Operation of production plants declined from prior year. Performance of equity method affiliates was flat.
● EBITDA margin: 25.5% (FYE2023 Q4)

19exc. FXMay 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

2. Q4 FYE2023
Business performance-2. Full-term Cumulative performance20

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

2. Q4 FYE2023 Business performance -2. Full-term Cumulative performance

Consolidated results
FYE2022Full-term

YoY

FYE2023
Full-term

Difference％ Change（Unit: ￥ bn.）

Revenue

957.1

1,186.6+229.5+24.0%

Core operating income

102.7

123.1

+20.4

+19.9%

10.7%

10.4%

Non-recurring profit and loss

-1.5

-3.5

-2.0

Operating income（ IFRS）

101.1

119.5

+18.4

10.6%
20.4%

10.1%
19.3%

-9.5

-14.0

-4.5

Income before income taxes
Income tax expenses

91.6

105.5

+13.9

24.9

29.5

+4.6

Net income

66.6

75.9

+9.3

+14.0%

64.1

73.0

+8.9

+14.0%

6.7%

6.2%

2.5

2.8

Core OI margin

OI margin
EBITDA margin

Finance costs+18.1%+15.2%(Attribution of net income)Net incom e attributable to owners of the parent

NI margin
Net income attributable to non-controlling interests

21

Forex （Unit: JPY ）USD

113.04136.00(average rate during the period)

EUR

131.11141.62

AUD

83.33

92.67

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results+0.3

2. Q4 FYE2023 Business performance -2. Full-term Cumulative performanceJapan

By Industry
Cumulative period basis

17%

15%
Steel & Metals

YoY（Unit: ￥ bn.）

FYE2022

FYE2023

Full-term

Full-term

Automobiles & Other
transportation
Electronics% Change
Difference% Changeexc. FX

5%

Food & Beverage
Healthcare
26%

Revenue

372.0

420.4

+48.4

+13.0%

Chemicals & Energy+12.9%

27%
OthersSegment income
Segment OI margin

30.9

31.6

8.3%

7.5%

+0.7

+2.4%

+2.1%

9%

1%

By Product
Cumulative period basis

32%
Gases
Equipment andinstallation,
other

68%

22

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

2. Q4 FYE2023 Business performance -2. Full-term Cumulative performance

United States

By Industry
Cumulative period basis

8%
Steel & Metals

YoY（Unit: ￥ bn.）

FYE2022

FYE2023

Full-term

Full-term

Automobiles & Other
transportation
Electronics

42%% Change
Difference% Change

10%exc. FX

7%

Food & Beverage
Healthcare

Revenue

224.8

303.0

+78.2

+34.8%

Chemicals & Energy+12.1%

13%

OthersSegment income
Segment OI margin

27.3

37.0

12.2%

12.2%

+9.7

+35.7%

7%+12.2%

13%

By Product
Cumulative period basis

25%

Gases
Equipment andinstallation,
other

75%

23

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

2. Q4 FYE2023 Business performance -2. Full-term Cumulative performance

EuropeBy Industry
Cumulative period basis

19%
30%

YoY

（Unit: ￥ bn.）

FYE2022

FYE2023

Full-term

Full-term

Automobiles & Other
transportation
Electronics% Change
Difference% Change

Steel & Metals

exc. FX

1%
3%

Food & Beverage
Healthcare

Revenue

209.7

272.8

+63.1

+30.1%

Chemicals & Energy+20.4%

19%

Others18%

Segment income
Segment OI margin

26.3

34.9

12.5%

12.8%

+8.6

+32.7%+22.6%

10%

By Product
Cumulative period basis

6%

Gases
Equipment andinstallation,
other

94%

24

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

2. Q4 FYE2023 Business performance -2. Full-term Cumulative performance

Asia & Oceania

By Industry
Cumulative period basis

3%

5%

19%
Steel & Metals

YoY（Unit: ￥ bn.）

FYE2022

FYE2023

Ful-term

Ful-term

Automobiles & Other
transportation
Electronics% Change
Difference% Changeexc. FX

Food & Beverage
Healthcare

Revenue

123.5

159.9

+36.4

+29.5%+14.4%

44%

24%

Chemicals & Energy
OthersSegment income
Segment OI margin

12.8

15.4

10.4%

9.7%

+2.6

+20.5%

+5.7%

3% 2%

By Product
Cumulative period basis

21%

Gases
Equipment andinstallation, other

79%

25

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

2. Q4 FYE2023 Business performance -2. Full-term Cumulative performance

Thermos
By Region
Cumulative period basis

16%

YoY

（Unit: ￥ bn.）

FYE2022

FYE2023

Full-term

Full-term% Change
Difference% Changeexc. FXJapan

Revenue

26.8

30.1

+3.3

+12.4%+10.5%

Segment income

6.4

6.0

-0.4

-6.5%

-8.5%

24.0%

19.9%

Segment OI margin26

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

Asia

84%

3. FYE2024 Full-term forecast

27

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

3. FYE2024 Full-term forecast

Consolidated forecast
FYE2023
Full-term

FYE2024
Full-term forecast

YoY
Difference％ Change(Announced on May 11, 2023)（Unit: ￥ bn.）

1,186.6

1,160.0

-26.6

-2.2%

123.1

127.5

+4.4

+3.6%

10.4%

11.0%

Non-recurring profit and loss

-3.5

－

+3.5

Operating income（ IFRS）

119.5

127.5

+8.0

OI margin

10.1%

11.0%

EBITDA margin

19.3%

20.2%

-14.0

-25.5

-11.5

Income before income taxes
Income tax expenses

105.5

102.0

-3.5

29.5

28.5

-1.0

Net income

75.9

73.5

-2.4

-3.2%

73.0

70.5

-2.5

-3.5%

6.2%

6.1%

2.8

3.0

RevenueCore operating income
Core OI margin

Finance costs

+6.7%

-3.3%

(Attribution of net income)Net incom e attributable to owners of the parent

NI margin
Net income attributable to non-controlling interests
Forex （Unit: JPY ）USD

136.00130(average rate during the period)

EUR

141.62

140

AUD

92.67

93.5

+0.2

Total Forex impact for FYE2024 Full-term forecast : Negative impacts of ￥18.3 bn. on revenue and ￥2.2 bn. on core operating income.

28

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

Q&A Session

Representative Director,
President CEO
Toshihiko Hamada

Executive Officer,
Group Finance &Accounting Office,and CFO

Senior Executive Officer,
Group Corporate Planning
OfficeSenior Executive Officer,
Group Sustainability
Management Office,and CSO

Tsutomu Moroishi（Chief Sustainability Officer）

Alan Draper
Takeshi Miki30

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

General Manager,
Investor relations,Group Finance &Accounting Office

General Manager,
Accounting,Group Finance &Accounting Office

Keita Kajiyama

Takashi YoshidaAppendix

31

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

NIPPON SANSO Holdings Group Summary

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

Published on May 11, 2023

Corporate Philosophy

Corporate Information（As of March 31, 2023）

Company Name

Nippon Sanso Holdings Corporation

Founded

October 30, 1910

Headquarters

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

81-3-5788-8500

Group Philosophy
Proactive. Innovative. Collaborative.
Making life better through gas technology.

Representative Director, President CEO
Representative

Toshihiko Hamada

Common stock

37.3 billion yen

Stock information（As of March 31, 2023）

Number of sharesGroup Vision
enhance human well-being and contribute to a more sustainable future.

433,092,837

Number of shareholders

14,743

Listed stock exchanges

Main Core businessTokyo Stock Exchange Prime Market

Ticker4091.T

Distribution by share holders (%)

10%

20%

Foreign Institutions and Individuals

30%

Industrial Gas businessJapanese Indivisuals and others

Mitsubishi Chemical Group 50.6

0%

We aim to create social value through innovative gas solutions that increase industrial productivity,

40%

Other Japanese Corporations

50%

60%

Thermos business

9.7

17.3

70%

80%

Japanese Financial Institutions

5.2

Electronics business

90%

100%

17.2

Revenue / Employee personnel by Segment （As of Match 31, 2023）
3%

7%

13%
35%

23%

0.5%
32%

22%

19,586¥1,186.6bn.

FYE2024 Financial Forecast（IFRS)Revenue¥1,160.0 bn.

Operating income¥127.5 bn.

people

15%
23%

26%
Japan

32

US

EuropeAsia & Oceania

Thermos

Corporate

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

Net income attributable toowners of the parent

EPS¥70.5 bn.
¥162.87

Our Medium-term management plan Summary

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

Published on May 11, 2023

Capital allocation

Overview
Plan NameNS Vision 2026

Cash-in

SloganEnabling the Future［Operating Cash flow]\730.0 bn.

Period4 years from April 2022 to March 2026

Cash-out\433.0 bn.

Released date

May 11, 2022

［Investment as a whole]

Financial target（Final fiscal year in the plan: FYE2026）

Composition ratio by Business

Revenue\975.0-1000.0 bn.

Core Operating Income\125.0-135.0 bn.

EBITDA margin

Group:

24%
0%

10%

≥24 %

Japan, the U.S., EU, A&O, Thermos: ≥17-33%
Adjusted net D/E ratio(the total for 4 years)

27%
20%

30%

Japan

US

Europe10%20%

Non-Financial target

Focused fields＜Environment＞
Reduction rate of GHG emissions

FYE2026:

18 %(Base year: FYE2019)

FYE2031:

32 %GHG reduced emissions through environmental product offer
FYE2026:Lower GHG emissions through environmental product offerings and applications＞NSHD Group GHG emission＜Safety Management＞
FYE2026:≤1.6

FYE2026:100 %FYE2026:≥22 %FYE2031:25 %FYE2026:≥18 %FYE2031:

22 %＜Compliance＞
＜HR＞

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%

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

40%

50%

Growth initiatives

60%

12%
70%

Strategic initiatives

80%

M&A

90%

6%
100%

Non-recurring items
Non-recurring 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).
Core operating income is calculated as operating income excluding certain gains and expenses attributable to non-recurring items in the Company.
FYE2022Full-term

FYE2023
Full-term

YoY
Difference（Unit: ￥ bn.）

Core operating income

102.7

123.1

+20.4

Non-recurring profit and loss

-1.5

-3.5

-2.0

Operating income（ IFRS）

101.1

119.5

+18.4

Items（Unit：￥ bn.）
FYE2022 Full-term result
Item

AmountImpairment loss associated with capital investment, etc.

Total

34

FYE2023 Full-term result
Item

Amount-1.5 Arbitration of Leasing facilities dispute (United States)-3.5

Gain on sales of overseas land (Asia & Oceania)

0.6

Expenses related to closure of JFE Steel Keihin Plant, etc. (Japan)-0.5

Restructuring-related expenses for the alfi business (Thermos)-0.3

Others (Japan)

0.1-1.5 Total

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results-3.5

Key performance indicators
Item

35

FYE2022Full-term

Unit

FYE2023
Full-term

Basic earnings per share

JPY

148.13168.85

Overseas sales ratio

％

59.2

63.0

ROE

％

11.2

10.8

ROCE

％

6.8

7.6

ROCE after Tax

％

4.8

5.4

Annual dividends per share

JPY

34

38

Dividend payout ratio

％

23.0

22.5

CAPEX(fund basis) & Investments and loans

\bn.

76.5

94.7

Depreciation and amortization

\bn.

92.4

105.7

Free cash flow

\bn.

77.9

89.8

Adjusted net D/E ratio

Times

0.94

0.81

Interest-bearing liabilities

\bn.

929.2

941.7

Net interest-bearing liabilities

\bn.

835.5

809.5

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results（Reference）Preconditions, Definition & Calculations of our KPIs
Glossary

Preconditions and Definitions in this Presentation

Core operating income

Core operating income is calculated as operating income excluding certain gains and expenses attributable to non-recurring factors (non-recurring items*).
*Non-recurring items are costs of structural reform (cost for withdrawal or downsizing business operations and special retirement allowances), losses causedby disasters or serious accidents, and other gains and expenses (such as disposal of idling assets).

Interest-bearing debt

Bonds and borrowings as presented in the statement of financial position, plus lease liabilities included in other financial liabilities.
*Includes Hybrid finance.

Hybrid finance

A form of debt financing that has features resembling equity, such as voluntary deferral of interest, extremely long-term redemption periods and subordination
during liquidation or bankruptcy procedures.
This kind of financing does not cause stock dilution, and a certain ratio of the funds procured in this way can be recognized as equity credit by rating
agencies provided that certain conditions are met.

Equity-type debt

The amount of debt procured by hybrid finance that has been recognize as equity credit by rating agencies.
In this fund procurement, rating agencies have recognized equity credit for 50% of the procured amount.

Indicator

Calculations used in this presentation

EBITDA margin（Core operating income＋Depreciation and amortization）／Revenue

ROE

Profit attributable to ownwers of parent／Total equity attributablle to ownwers of parent*

ROCE

Core operating income／（Interest-bearing debt＋Total equity attributablle to ownwers of parent）* [Capital employed]

ROCE after Tax

Core operating income after Tax（+Dividend received）［NOPAT] ((Core operating－Investment income/loss from Equity in earnings (losses) of affiliatedcompanies included in Core operating income)×(1－effective tax rate)＋Investment income/loss from Equity in earnings (losses) of affiliated companies
included in Core operating income＋Dividend received))／（Interest-bearing debt＋Total equity attributablle to ownwers of parent）* [Capital employed]

Adjusted net D/E ratio((Interest-bearing debt – equity-type debt) – cash and cash equivalents)／(equity attributable to owners of the parent + equity-type debt)** The average of the amounts at the end of the comparative fiscal years of the previous and current fiscal years is used.

36

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

Condensed consolidated statements of Cash flows（Unit：￥ bn.）

37

FYE2022

FYE2023

Full-term

Full-term

YoY
Difference% Change

Income before income taxes
Depreciation and amortization
Changes in working capital
Others

91.6
92.4
-20.6
-14.6

105.5
105.7
-22.2
-1.0

+13.9
+13.3
-1.6
+13.6

+15.2%Cash flows from operating activities

148.7

187.9

+39.2

+26.4%

Capital expenditures
Investments and loans
Others (asset sales, etc.)

-74.4
-2.0
5.6

-91.8
-2.9
-3.3

-17.4
-0.9
-8.9

Cash flows from investing activities

-70.8

-98.0

-27.2

+38.4%

Free cash flow

77.9

89.8

+11.9

+15.4%Cash flows from financing activities

-77.9

-54.4

+23.5

-30.2%

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

Condensed consolidated statements of Financial position（Unit：￥ bn.）

FYE2022

FYE2023

YoY

FYE2022

FYE2023

YoY

Q4

Q4

Difference

Q4

Q4

Difference

Cash and cash equivalents

93.6

132.2

+38.6

Trade payables

115.1

128.1

+13.0

Trade receivables

218.4

243.5

+25.1

Interest-bearing liabilities

929.2

941.7

+12.5

Inventories

80.0

97.6

+17.6

Others

271.5

330.9

+59.4

Others

30.2

53.7

+23.5

1,315.8

1,400.9

+85.1

422.4

527.0

+104.6

Share capital and capital surplus, etc

569.5

626.5

+57.0

Property, plant and equipment

729.6

776.1

+46.5

Other components of equity

59.1

97.7

+38.6

Goodw ill

485.1

513.6

+28.5

Equity attributable to

Intangible assets

241.3

242.3

+1.0

owners of parent

628.7

724.3

+95.6

Others

98.3

99.7

+1.4

Non-controlling interests

32.4

33.6

+1.2

Total non-current assets

1,554.5

1,631.8+77.3

Total equity

661.1

757.9

+96.8

Total assets

1,977.0

2,158.9+181.9Total liabilities and equity

1,977.0

2,158.9+181.9Total current assets

38

Total liabilities

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

Results overview by Segment
FYE2023

FYE2022

Composition
ratio

Full-term

Full-term

Work in Progress

YoY
Difference% Change

Forex impact（Unit: ￥ bn.）

Segment OI

372.0
30.9

420.4
31.6

Segment OI margin

8.3%

7.5%

Revenue
Segment OI

224.8
27.3

303.0
37.0

Segment OI margin

12.2%

12.2%

Revenue
Segment OI

209.7
26.3

272.8
34.9

Segment OI margin

12.5%

12.8%

Revenue
Segment OI

123.5
12.8

159.9
15.4

Segment OI margin

10.4%

9.7%

Revenue
Segment OI

26.8
6.4

30.1
6.0

Segment OI margin

24.0%

19.9%

0.1
-1.1

0.0
-2.0

Core OI

957.1
102.7

1,186.6
123.1

Core OI margin

10.7%

10.4%

RevenueJapan

United States

EuropeAsia & Oceania

Thermos

Revenue

Adjustment

Segment OI

Revenue

Consolidated total

39

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

35.4%
25.7%

25.5%
30.1%

23.0%
28.3%

13.5%
12.6%

2.5%
4.9%

0.0%
-1.6%

100.0%
100.0%+48.4+0.7+13.0%
+2.4%

+0.4
+0.1

+78.2
+9.7

+34.8%+35.7%

+45.6
+5.7

+63.1
+8.6

+30.1%+32.7%

+16.8
+2.1

+36.4
+2.6

+29.5%+20.5%

+16.3
+1.7

+3.3
-0.4

+12.4%
-6.5%

+0.4
+0.1

-0.1
-0.9

―
―

+229.5+20.4+24.0%+19.9%+79.6+9.9

Revenue growth by Product (Full-term)
Japan*YoY

YoY % Change

YoY

YoY % Change

YoY

YoY % Change% Changeexc. FX impact% Changeexc. FX impact% Changeexc. FX impact

On-siteSpecialty gases
Subtotal
Industrial Gases-related

installation, other

Electronics-related

Subtotal

Total

Asia & Oceania

YoY

Bulk

Equipm ent andEurope% Change
Packaged

Gases

United States

Revenue+8.4%+10.1%+26.8%+15.9%+16.0%+18.0%+34.1%+30.5%+26.7%+28.9%-1.9%+11.4%
+8.5%
+5.3%
+7.1%

+21.3%+39.7%+24.4%+19.2%+31.5%+12.3%+29.3%+15.1%+10.4%+21.7%+36.8%+29.8%+34.7%+32.9%+31.6%+20.2%+15.9%+16.1%+16.8%+16.5%+1.5%+28.7%+7.2%+65.3%+10.1%+56.6%+37.4%-8.5%+30.1%+11.7%－+11.7%

+3.4%
+3.4%

+17.0%+47.9%+22.1%+1.9%+34.0%+7.1%+13.0%+34.8%+12.1%+30.1%+20.4%+29.5%+14.4%－* In Japan, the FX impact has been slight effect. Thus, the information in the above chart is omitted.

（ Reference） Category

Breakdown

Gases

Industrial gases such as oxygen, nitrogen, argon, carbon dioxide and helium, LP gases, specialty gases

Packaged

Gas filling containers (cylinders) are delivered to the customer, and the gas is supplied according to method of use

Bulk

A storage tank for liquified gas is installed within the customer’s facility, and the gas is supplied according to method of use

On-siteA gas production facility is established in an area adjacent to the customer, and the gas is constantly supplied using a directly connected pipe

Specialty gases

Mainly, gases for electronic materials that are used in the manufacture of semiconductors or LCD panels, standard gas, high-purity gas

Equipment and installation, other40

Ancillary equipment for gas usage, refining equipment to raise gas purity level, construction for equipment installation, and welding and cutting-related goods

Industrial Gases-related

Supply facilities and other gas-using equipments, air separation units, and hardgoods (welding and cutting-related)

Electronics-related

Construction for equipment and pipe installation toward electronics, refining equipment for removing impurities, and other equipment

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

Revenue composition
As of 1/27 9AM
WIP(Charts by industry)

By Industry

By Segment
3%

13%

13%
27%
5%

35%
FYE2023
Full-term

FYE2023
Full-term¥1,156.3bn.

¥1,186.6 bn.

23%

18%

(exc. Thermos business)

20%
9%

26%
Japan

U.S .

Eur ope

Asia & Oceania

8%

Thermos

Steel & Metals

Automobiles & Other transportation

Electronics

Food & Beverage

Healthcare

Chemicals & Energy

Others41

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

Business performance over the past five years（¥ bn.）

Revenue（¥ bn.）

Operating income（IFRS）

Profit attributableto owners of the parent（¥ bn.）

OI margin

1,186.6
850.2
740.3

11.0%

10.9%

10.6%

10.1%

9.0%

NI margin

957.1

119.5

818.2

93.9

88.8

101.1

5.6%

6.7%

6.7%

53.3

55.2

64.1

2020.32021.32022.3

6.3%

66.8
41.2

2019.32020.32021.32022.32023.3（¥ bn.）Net interest-bearing debts

2019.32021.32022.3（¥ bn.）Net debt excluding HBF

7.3%

7.8%

Depreciation
and amortization

2023.3（¥ bn.）

7.7%

Adjusted net D/E ratio*

1.15
0.94

91.8
0.81

76.6

72.8

695.7

648.3

608.1

585.5

559.5

250.0

250.0

250.0

250.0

250.0

2019.32020.32021.32022.32023.3*Adjusted Net D/E Ratio: an indicator of safety (financial soundness) calculated in consideration of this partdue to 50% of the amount raised by HBF is permitted as “Equity" by rating agencies.

2019.32020.3

105.7

74.4
60.0

42

2019.373.0

CAPEX % Sales

8.6%

1.45

2023.3

Capital expenditures
10.4%

Hybrid Finance (HBF)

1.54

2020.36.2%

2021.3

86.3

2020.32021.32022.356.1

2022.32023.3*It’s recorded on a construction basis until FYE2019 and on a cash basis from FYE2020 onwards.

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

83.7

92.4

2019.32023.3Glossary: EBITDA margin／ROCE after Tax
EBITDA marginand EBITDA

EBITDA（Earnings Before Interest Taxes Depreciation and Amortization）

Indicator that shows profitability based on Cash Flow, excluding theimpact of M&A and CAPEX.
This indicator should not be considered in isolation from performanceindicators such as operating income and net income, which are indicators
based on IFRS, and should not be viewed as substitutes for these
indicators. This indicator should be given due consideration whencomparing them with similarly named financial indicators presented byother companies.

EBITDA
margin（Return On Capital Employed after Tax ）=NOPAT(Net Operating Profit After Tax)

21.2%

19.3%

174.1

173.6

2020.32021.3

195.1

228.8

121.9

2022.32023.3（Reference）

ROCE after Tax
and NOPAT（￥ bn.）

5.4%
4.5%

4.6%

4.4%

6.2%

43

6.4%

6.1%

6.8%

7.6%

4.8%

123.1

Indicator based on profitability and investment efficiency
This indicator should not be considered in isolation from performanceindicators such as operating income and net income, which are indicators
based on IFRS, and should not be viewed as substitutes for these
indicators. This indicator should be given due consideration whencomparing them with similarly named financial indicators presented byother companies.

（￥ bn.）ROCE and Core OI
ROCE

ROCE after Tax（Interest-bearing debt + Total equity attributable to owners of parent）** The average of the amounts at the end of the comparative fiscal year s of the previous and current fiscal years is used.

20.4%

16.5%

2019.3

ROCE after Tax

20.5%（￥ bn.）

47.9

2019.3

64.6

62.8

2020.32021.3

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results

73.0

2022.3

87.4

90.3

87.2

2020.32021.3

102.7

65.8

2023.32019.32022.32023.3

Industrial gas supply systems
Air Separation Gases

Other Gases

Air Separation Unit

On-siteAir

Major supply destination（Sector）

Storage tank for liquid gases
Petrochemical

Steel
Oxygen Nitrogen
N2
O2

RefineryWe’ve established production plants in the vicinity of the customer.
A form of direct connection and constant supply of pipes.

（Large-scale supply）

Supply via pipeline

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

Oxygen
O2

Bulk
CO2

Major supply destination（Sector）

NitrogenN2

Tank truck
Argon
Ar

Automobile

Shipbuilding

Construction
machinery

Pharmaceutical
MedicalManufacturing
Glass/Paper
Food/
beverage

LCP

Photovoltaics

Semiconductor

H2

He

Tank truck

We’ve installed a storage tank for liquefied gas in the customer's
premises. A form of supply according to the method of use of gas.

Supply via Liquid gases form

（ Medium-scale supply）

Supply via Liquid gases form

Packaged
Filling station

Major supply destination（Sector）

Filling station
Flatbed truck

Advanced
medicine

HomecareEngineeringdevelopment

R&D

Sanitation

Flatbed truck

Construction/
Installation

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

Supply via Cylinder

44（ Small-scale supply）

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 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.

45

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 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
FYE2023 Full-term Earnings Presentation
Annual Shareholder meeting
Q1 FYE2024 Earnings Call

May 19, 2023
June 20, 2023
July 28, 2023

www.nipponsanso-hd.co.jp/en/

NIPPON SANSO Holdings Corporation (Ticker:4091.T)
Headquarters：1-3-26 Koyama Shinagawa-ku, Tokyo 142-0062, Japan46

May 11, 2023 | NIPPON SANSO Holdings Supplementary Materials FYE2023 results© 2023 NIPPON SANSO Holdings Corporation All rights reserved