Q2 FYE2023
Consolidated Financial Results
Earnings Announcement（ Six months ended September, 2022 ）November 1, 2022
Tokyo（Japan）

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

2

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 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＞

Average Forex rates
FYE2022

FYE2023

FYE2023

FYE2023（Updated）（Previous）

Full-term

Full-term

Assumption

Assumption

Currency

Revenue

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.）

USD

109.76110.10111.45113.04131.25135.30

138

115

USD

+2.0

+0.25

EUR

132.44131.16130.96131.11138.75139.14

140

125

EUR

+1.6

+0.2

SGD

82.41

82.01

82.77

83.83

94.97

97.12

97.1

82.7

AUD

84.15

82.33

82.69

83.33

92.52

93.51

93.5

82.2

CNY

17.06

17.07

17.35

17.65

19.71

19.91

19.9

17

（Apr.-Mar.） （Apr.-Mar.）● 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.

3

Unit：¥ bn.

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

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 resultsCore Operating Income

Contents

1.

Strategic overview

2.

Financial Profile

3.

Q2 FYE2023 Business performance-1. Q2 Quarter Period performance-2. First half Cumulative performance

4.

FYE2023 Full-term Forecast

Appendix4

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

1. Strategic overview

Draft as of2022/10/12
18:30

5

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 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

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

1. Strategic overview

Non-financial KPI target in NS Vision 2026
FYE2026
TargetEnvironment＜Environment＞● Reduction rate of GHG emissions

18%
down

*1

(Base year: FYE2019 )● GHG reduced contribution
exceeds GHG emission (Scope 1+2)

X＞Y･Breakdown information(Unit: Thousands of tonnes CO2e )X: Lower customer GHG emissions throughenvironmental product offerings and applications
Y: NSHD Group GHG emission (Scope 1＋2)

Social＜Safety Management＞● Lost Time Injury Rate

≤1.6

＜HR＞

Governance● Rate of female employees≥22%● Rate of female management posts≥18%＜Compliance＞● Rate of receiving compliance training *2*1 The figure for the volume of GHG emissions for FYE2019, which is the reference value, calculate the actual GHG emissions in FYE2019 plus the following:1) estimated emissions of the Gas Business in Europe in FYE2019 and 2) estimated emissions of the U.S. HyCO business in FYE2019.
*2 We plan to begin data collection from the current fiscal year; FYE2023.

7

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results100%

1. Strategic overview

Material balance & Environmental contribution
Draft underconsideration

Input

OutputEnergy and resource inputs in business activities

Environmentally hazardous substances generated by business activities

10%

1%

18%

Raw material

EnergyBusiness activities

117,586 TJ

Air

Electic power

Fuels

GHG
emissions

5,921
thousands of tonnes CO2e

Heat

Scope1

・Air separation

89%

・HyCO business

6% 0.1%Natural gas

・Liquid CO2 business・Distribution

Water
By-productgas(CO2 raw material)

4,591
38%

Scope282%

Wastewater

2,988 ten thousands of m

Waste emissions

14,352 tonnes

Waste disposed of as landfill

3,875 tonnes

3

ten thousands of m 3
Surface water
Water supply from local government

56%

Groundwater

GHG emission reduction contribution
Total

6,865 thousands of tonnes CO e

Products & services

3,176 thousands of tonnes CO e
3,689 thousands of tonnes CO e

2

Other

Industrial gases(Note) For details on the reporting data, please refer to P116, “Sustainability Data” in our Integrated report 2022.

8

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

22

1. Strategic overview

Summary : Progress toward Financial targets
Draft underconsideration
We will continue to work, develop, and refine our business strategies to ensure achievement of performance targets
identified

in the final year of the NS Vision 2026.

Uncertain
business
environment
continues

Perseverance tofeasibleprice revisions

Ongoing searchfor business
opportunities

9

Uncertain economic environment: sharp fluctuations in FX rates; significant price fluctuations in crude oil,liquefied natural gas, and electricity; supply chain disruptions; and decades high inflation levels, etc.
Business confidence in each region is expected to get worse moderately in general compared to our previous forecast.
● In the FYE2023, underlying revenue growth excluding currency effect, pass through, and surcharge up, will be low-single-digit growth,and OI growth to be 2.1% excluding currency effect (Y/Y basis).

Proactive and persistent price management to ensure increases in electricity / energy costs,
which is a major industrial gas cost driver, are passed through and surcharge to the customer.
Promote valuable service, reliable supply, appropriate scale, and utility of our products to existing customers,
new customers, and potential customers.

Pursuit cost reduction constantly, productivity improvement, and providing useful applications or technologies
that foster close and sticky customer relationships.

Seize business carbon neutral-related opportunities around the world.
Focus our management resources to continue to build and grow business relationships with existing and potential customers.
● From the FYE2023 onward, we will increase the production and manufacturing capacity of electronic material gases
as well as implement the Total Electronics strategy across the Group.

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

1. Strategic overview

Communication platform for collaboration with partners
We are committed to sustainability and we aspire to build business avenues across the entire spectrumof the any industry, especially manufacturing industry.

Please jump to the access webpage link. > https://www.carbonneutralworld.com/

10

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

Draft underconsideration

1. Strategic overview

Opportunities：Contribution for Carbon neutral
Our Group's
Aspirations（Toward CY2030）

Solution provider considered indispensable for realizing a Carbon-neutral (CN) society
Effective use of energy by improving combustion efficiency, hydrogen supply by HyCO project, blue hydrogen and carbon fixation by CO2 capture

Realization of
CN society

Operate a cross-regional response project organization.
Focus on Europe to acquire potential projects.

Step by step, concentrate management resources
on selected regions, customers, and technologies,
and steadily build the Group's track record.
(Aim to achieve Quick WIN)

Proactively perform valuable activities for CN
through partnership and Strategic allianceswith other companies(e.g., in the field of large-scale CO2 capture, utilization)

Mid-term management plan ｜ NS Vision 2026
FYE2023
11

Enabling the Future

FYE2026

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

CY2030CY20501. Strategic overview

Track record : Contribution with Green Combustion technologies
Draft underconsideration
Challenge in the Steel industry: Reducing CO2 emissions

Our approach: Utilizing Oxy-fuel combustion*

CO2 emissions are expected to be reduced through the utilization of iron scrap (EAF),
the introduction of innovative technologies such as hydrogen reduction technology,
and the promotion of energy conservation.

Oxy-fuel combustion improves the heat efficiency of combustion compared to air combustion.
We can propose a comprehensive engineering approach with various equipment & industrial
gas supply applications across various customer manufacturing lines.

Applying oxy-fuel for steel manufacturing process- Creating new demand for Oxygen gas and contributing to a Carbon-neutral society through Oxy-fuel combustion technology.
Innova-JetⓇ

SCOPE-JETⓇ
SCOPE-JETⓇ SCAN＋
Supersonic carbon injector

Innova-JetⓇ

CastingInnova-JetⓇ Swing

Innova-JetⓇ

Pit Furnace
Innova-JetⓇ＋
Laser Gas Monitoring System

Ladle furnace

Electric arc furnace(EAF)
Continuous Casting* Oxy-fuel combustion: One of combustion technology that combusts fuel with oxygen and recirculated exhaust gas to achieve a CO 2 concentration in the exhaust gas of 90% or more,
enabling CO2 recovery without a separation process.

12

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

Reheat Furnace

1. Strategic overview

Key CAPEX for our sustainable growth
We have identified many global growth opportunities and currently have a diversified capital portfolio aligned with
our Medium-term management plan; NS Vision 2026.

（色使いの関係で、Q列に、該当四半期データを入11%

左記ドーナツチャート 基礎データ
By Industry

Industrial

42%

Steel & Metals
Electronics

22%
Total

Healthcare

換算レート（ご参考）：期中平均レート

Chemicals & Energy

190

100
By Industry

OthersIndustrial

2%23%* 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.

13

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

1. Strategic overview

Key Highlights

Proceed flexible measures against inflation
Key initiatives in Electronics & Carbon Neutral related

Pursuing project wins and building backlog
Focus on growth, productivity and pricing
Accelerated weak JPY pushed Revenue & Operating Income up

14

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

2. Financial Profile

15

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

2. Financial Profile

Financial management｜Optimal Fund allocation
Draft underconsideration● Allocate capital in accordance with the strategies and goals of the Medium-term management plan; NS Vision 2026.

Basic Concept● Prioritize capital projects based on economic / financial returns, risk profile, customer / end market outlook.
● Fast, nimble, and proactive response to business opportunities and customer inquiries.

Financialsoundness

BudgetAdjusted net D/E Ratio(End of FYE2023)

Leverage Reduction― Reduction of financial expenses

0.82

Fortifying the capital structure

BudgetCAPEX and investment

Economies of scale / improve customer density

119.1

Pursue group synergies and globalization efforts(Cash basis: ￥ bn.)

Growthinvestment

Investment for Growth driver― Achieve growth, profitability,and efficiency

Shareholder
Returns

Stable & business performance-linked― Fulfillment of shareholders‘and investors' expectations

16

Budgetannual dividend(￥)

36

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

Prioritize and invest in projects with solid economic returns and earnings potential
Seek M&A opportunities that improve customer density, expand geographic presence,or enhance technical capabilities

2. Financial Profile

Improving to fruitful report for our stakeholders
Production process for 2022 edition

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

Issuing the Report

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

Sub-heads

Close Communication & Good Collaboration

NSHD group companies

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

17November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results(Japan/the U.S./Europe/Asia & Oceania/Thermos)

3. Q2 FYE2023
Business performance-1. Q2 Quarter Period performance18

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

3. Q2 FYE2023 Business performance -1. Q2 Quarter Period performance

Consolidated results（Unit: ￥ bn.）

FYE2022Q2

FYE2023
Q2(Jul.-Sep.)(Jul.-Sep.)

YoY
Difference％ Change

Revenue

229.0

297.6

+68.6

+30.0%

Core operating income

25.2

25.9

+0.7

+2.5%

11.0%

8.7%

Non-recurring profit and loss

-0.0

0.4

+0.4

Operating income（ IFRS）

25.2

26.3

+1.1

11.0%
20.7%

8.9%
17.6%

-2.4

-2.2

+0.2

Income before income taxes
Income tax expenses

22.8

24.1

+1.3

4.0

5.6

+1.6

Net income

18.7

18.4

-0.3

-1.5%

18.2

17.8

-0.4

-2.0%

8.0%

6.0%

0.5

0.5

Core OI margin

OI margin
EBITDA margin

Finance costs

+4.6%

+5.6%

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

NI margin
Net income attributable to non-controlling interests

19

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results+0.0

3. Q2 FYE2023 Business performance -1. Q2 Quarter Period performanceGas business in Japan
YoY（Unit: ￥ bn.）

FYE2022

FYE2023

Q2(Jul.-Sep.)

Q2(Jul.-Sep.)% Change
Difference% Changeexc. FX

Revenue

90.1

99.2

+9.1

+10.1%+10.0%

Segment income

7.4

6.7

-0.7

-10.4%-10.8%

8.3%

6.8%

Segment OI margin

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 significantly increasing.
・ Bulk (LP gas): Volume decreased, but revenue increased significantly due to the impact of higher selling prices linked to purchase prices.
・ Specialty gases: Shipments for electronics industry were on a par with the previous year.
・ Equipment and installation, other: Revenue of industrial gas-related were flat with the previous year, but revenue of electronics-related increased.
● EBITDA margin: 11.5% (FYE2023 Q2)

20

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

3. Q2 FYE2023 Business performance -1. Q2 Quarter Period performanceGas business in the U.S.
YoY
（Unit: ￥ bn.）

FYE2022

FYE2023

Q2(Jul.-Sep.)

Q2(Jul.-Sep.)% Change
Difference% Changeexc. FX

Revenue

55.7

77.0

+21.3

+38.3%+9.8%

Segment income

7.0

6.7

-0.3

-4.4%

-25.7%

12.7%

8.8%

Segment OI margin

YoY Factors for increase/decrease in this quarterly period and other comment
・ Bulk & Packaged: While demand remains stable, costs have risen significantly from general inflation and high energy and distribution costs.
Driver shortage improvement, but remains a cost headwind.
・ On-site: Customer demand stable with prior year.
・ Equipment and installation, other: Demand recovered in welding and cutting related fields.
● EBITDA margin: 22.4% (FYE2023 Q2)

21

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

3. Q2 FYE2023 Business performance -1. Q2 Quarter Period performanceGas business in Europe
YoY（Unit: ￥ bn.）

FYE2022

FYE2023

Q2(Jul.-Sep.)

Q2(Jul.-Sep.)% Change
Difference% Changeexc. FX

Revenue

47.4

71.3

+23.9

+50.5%+40.1%

Segment income

6.0

7.0

+1.0

+16.8%

+8.4%

12.8%

9.9%

Segment OI margin

YoY Factors for increase/decrease in this quarterly period and other comment
・ Packaged: Shipment volume decreased but revenue increased due to the effect of price revision.
・ Bulk and on-site: Demand remained firm in the manufacturing industry.
・ Equipment and installation, other: Revenue of welding and cutting-related decreased.
・ Appropriate response to rapid changes in the business environment: Revenue increased significantly due to price pass-through, cost recovery,and surcharges in response to the steep rise in energy costs that has continued to increase since Q2 of the previous fiscal year.
● EBITDA margin: 21.8% (FYE2023 Q2)

22

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

3. Q2 FYE2023 Business performance -1. Q2 Quarter Period performanceGas business in Asia & Oceania
YoY（Unit: ￥ bn.）

FYE2022

FYE2023

Q2(Jul.-Sep.)

Q2(Jul.-Sep.)% Change
Difference% Changeexc. FX

Revenue

29.6

42.5

+12.9

+43.4%+22.3%

Segment income

3.6

4.3

+0.7

+19.9%

+1.9%

12.2%

10.2%

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 significantly due to an increase in volume and the impact of higher selling prices linked to purchase prices.
・ Specialty gases: Revenue increased significantly due to growth in shipment volume for electronics industry in East Asia.
・ Equipment and installation, other: In industrial gas-related business, sales increased mainly in Singapore and Australia.
In electronics-related business, sales increased in Taiwan.
● EBITDA margin: 15.6% (FYE2023 Q2)

23

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

3. Q2 FYE2023 Business performance -1. Q2 Quarter Period performance

Thermos business
YoY（Unit: ￥ bn.）

FYE2022

FYE2023

Q2(Jul.-Sep.)

Q2(Jul.-Sep.)% Change
Difference% Change

Revenue

6.1

7.4

+1.3

+22.3%+20.5%

Segment income

1.4

1.3

-0.1

-9.0%

-10.5%

24.2%

18.0%

Segment OI margin

YoY Factors for increase/decrease in this quarterly period and other comment
・ Japan: Revenue of main products; vacuum insulated mugs and sports bottles recovered due to easing of government restrictions.
Revenue of new products such as frying pans were also strong. Cost of sales increased because of the weak JPY.
・ Asia: Revenue in South Korea improved with strong distributor performance. Operation of production plants similar with previous year.
Performance of equity method affiliates improved.
● EBITDA margin: 22.9% (FYE2023 Q2)

24exc. FX

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

3. Q2 FYE2023
Business performance-2. First half Cumulative performance25

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

3. Q2 FYE2023 Business performance -2. First half Cumulative performance

Consolidated results（Unit: ￥ bn.）

FYE20221H

FYE2023
1H(Apr.-Sep.)(Apr.-Sep.)

YoY
Difference％ Change

Revenue

447.3

573.6

+126.3+28.2%

Core operating income

49.8

56.1

+6.3

+12.7%

11.1%

9.8%

Non-recurring profit and loss

-0.0

-2.3

-2.3

Operating income（ IFRS）

49.7

53.8

+4.1

11.1%
21.3%

9.4%
18.9%

-4.7

-4.2

+0.5

Income before income taxes
Income tax expenses

45.0

49.6

+4.6

9.8

13.2

+3.4

Net income

35.1

36.4

+1.3

+3.6%

34.2

35.1

+0.9

+2.5%

7.7%

6.1%

0.8

1.2

Core OI margin

OI margin
EBITDA margin

Finance costs+8.2%+10.3%(Attribution of net income)Net incom e attributable to owners of the parent

NI margin
Net income attributable to non-controlling interests

26

Forex （Unit: JPY ）USD

110.10135.30(average rate during the period)

EUR

131.16139.14

AUD

82.33

93.51

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results+0.4

3. Q2 FYE2023 Business performance -2. First half Cumulative performanceGas business in Japan

By Industry
Cumulative period basis

17%

14%

Steel & Metals

Automobiles & Other transportation

YoY（Unit: ￥ bn.）

FYE2022

FYE2023

1H(Apr.-Sep.)

1H(Apr.-Sep.)

5%

Electronics% Change

Food & Beverage

Difference% Changeexc. FX
Healthcare

26%

27%

Chemicals & Energy

Revenue

173.2

194.4

+21.2

+12.2%+12.1%

Segment income

13.9

12.7

-1.2

-9.1%

-9.5%

Segment OI margin

8.1%

6.5%

Others9%2%

By Product
Cumulative period basis

31%

Gases
Equipment andinstallation, other

69%

27

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

3. Q2 FYE2023 Business performance -2. First half Cumulative performanceGas business in the U.S.

By Industry
Cumulative period basis

8%

11%
Steel & Metals

41%

Automobiles & Other transportation

YoY
FYE2022（Unit: ￥ bn.）

FYE2023

Electronics% Change

7%

Food & Beverage

1H(Apr.-Sep.)

1H(Apr.-Sep.)

Difference% Changeexc. FX
Healthcare

Chemicals & Energy

Revenue

107.3

145.9

+38.6

+35.9%

13%

Others+10.6%

7%

Segment income

14.1

16.0

Segment OI margin

13.1%

11.0%

+1.9

+14.0%

13%-7.6%

By Product
Cumulative period basis

24%

Gases
Equipment andinstallation, other

76%

28

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

3. Q2 FYE2023 Business performance -2. First half Cumulative performanceGas business in Europe

By Industry
Cumulative period basis

20%

30%
Steel & Metals

Automobiles & Other transportation

YoY（Unit: ￥ bn.）

FYE2022

FYE2023

1H(Apr.-Sep.)

1H(Apr.-Sep.)

0.4%
Electronics% Change

3%

Food & Beverage

Difference% Changeexc. FX
Healthcare

Chemicals & Energy

20%

Revenue

94.9

136.3

+41.4

+43.6%

Others+35.4%
18%

9%

Segment income

12.7

15.9

Segment OI margin

13.4%

11.7%

+3.2

+25.1%+17.8%
By Product
Cumulative period basis

6%

Gases
Equipment andinstallation, other

94%

29

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

3. Q2 FYE2023 Business performance -2. First half Cumulative performanceGas business in Asia & Oceania

By Industry
Cumulative period basis

3%

4%

23%
Steel & Metals
Automobiles & Other transportation

YoY（Unit: ￥ bn.）

FYE2022

FYE2023

1H(Apr.-Sep.)

1H(Apr.-Sep.)

Electronics% Change
Difference% Change

Food & Beverageexc. FX

43%

Healthcare
Chemicals & Energy

23%

Revenue

58.9

81.8

+22.9

+38.8%+20.4%

Segment income

6.6

8.9

+2.3

+34.6%+16.7%

Segment OI margin

11.3%

10.9%

Others2%

2%

By Product
Cumulative period basis

21%

Gases
Equipment andinstallation, other

79%

30

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

3. Q2 FYE2023 Business performance -2. First half Cumulative performance

Thermos business
By Region
Cumulative period basis

16%

YoY
FYE2022

FYE2023

1H(Apr.-Sep.)

1H(Apr.-Sep.)

Difference

Revenue

12.8

15.1

+2.3

+17.9%+16.1%

Segment income

2.9

3.3

+0.4

+11.0%+9.7%（Unit: ￥ bn.）

% Change% Changeexc. FX
Japan

Asia

84%

Segment OI margin

31

23.2%

21.8%

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

4. FYE2023 Full-term forecast

32

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

4. FYE2023 Full-term forecast

Consolidated forecast
FYE2022Full-term

FYE2023
Full-term forecast

YoY
Difference％ Change(Announced on Nov. 1 2022)（Unit: ￥ bn.）

FYE2023 Full-term
forecast (previos)(Announced on July 29, 2022)

Revenue

957.1

1,160.0+202.9+21.2%

950.0

Core operating income

102.7

115.0

+12.3

+12.0%

107.0

10.7%

9.9%

Non-recurring profit and loss

-1.5

-2.0

-0.5

Operating income（ IFRS）+11.9

Core OI margin

11.3%

-2.0

101.1

113.0

OI margin

10.6%

9.7%

11.1%

EBITDA margin

20.4%

18.9%

21.0%

-9.5

-14.0

-4.5

Income before income taxes
Income tax expenses

91.6

99.0

+7.4

24.9

28.5

+3.6

Net income

66.6

70.5

+3.9

+5.8%

67.0

64.1

68.0

+3.9

+6.1%

65.0

6.7%

5.9%

2.5

2.5

Finance costs+11.7%

105.0

-10.5

+8.1%

94.5
27.5

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

NI margin
Net income attributable to non-controlling interests

6.8%

-0.0

Forex （Unit: JPY ）USD

113.04138

115(average rate during the period)

EUR

131.11

140

125

AUD

83.33

93.5

82.2

Total Forex impact for FYE2023 Full-term forecast : Positive impacts of ￥80.9 bn. on revenue and ￥10.1 bn. on core operating income.

33

2.0

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

Q&A Session

Representative Director,
President CEO
Toshihiko Hamada

Executive Officer,
Group Finance &Accounting Office,and CFO

Senior Executive Officer,
Group Corporate Planning
OfficeTsutomu Moroishi

Alan Draper

35

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

Takeshi Miki

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

General Manager,
Investor relations,Group Finance &Accounting Office

General Manager,
Accounting,Group Finance &Accounting Office

Keita Kajiyama

Takashi YoshidaAppendix

36

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

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）

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

Number of sharesenhance human well-being and contribute to a more sustainable future.

433,092,837

Number of shareholders

14,709Listed stock exchanges

Tokyo Stock Exchange Prime Market

TickerMain Core business4091.T

Distribution by share holders (%)

10%

20%

Industrial Gas businessJapanese Indivisuals and others

Electronics business

Thermos business

9.82

Foreign Institutions and Individuals 15.84

Mitsubishi Chemical Holdings 50.59

0%Making life better through gas technology.

30%

40%

Other Japanese Corporations

50%

60%

70%

80%

90%

100%

Japanese Financial Institutions 18.20

5.55

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%

37

US

Revenue¥1,160.0 bn.

Operating income¥113.0 bn.

23%

23%

Japan

FYE2023 Financial Forecast（IFRS)EuropeAsia & Oceania

Thermos

Corporate

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

Net income attributable toowners of the parent

EPS¥68.0 bn.
¥157.11

Our Medium-term management plan Summary

Published on November 1, 2022

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

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:Of which, Strategic investment : \38.0bn.

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＞

38

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%

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 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.

FYE20221H

FYE2023
1H

YoY
Difference（Unit: ￥ bn.）

Core operating income

49.8

56.1

+6.3

Non-recurring profit and loss

-0.0

-2.3

-2.3

Operating income（ IFRS）

49.7

53.8

+4.1

Items（Unit：￥ bn.）
FYE2022 1H result
Item
OthersFYE2023 1H result
AmountItem-0.0 Arbitration of Leasing facilities dispute, etc.
Gain on sales of overseas land (Asia&Oceania)

Total

39

-0.0 Total

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

Amount
-2.9
0.5
-2.3

Key performance indicators
Item

40

Not
UpdatedFYE2022
1H

Unit

FYE2023
1H

FYE2022Full-term

Basic earnings per share

JPY

79.24

81.22

148.13

Overseas sales ratio

％

59.1

64.4

59.2

ROE

％

―

―

11.2

ROCE

％

―

―

6.8

ROCE after Tax

％

―

―

4.8

Annual dividends per share

JPY

―

―

34

Dividend payout ratio

％

―

―

23.0

CAPEX(fund basis) & Investments and loans

\bn.

34.4

44.3

76.5

Depreciation and amortization

\bn.

45.4

52.0

92.4

Free cash flow

\bn.

36.7

29.8

77.9

Adjusted net D/E ratio

Times

1.06

0.88

0.94

Interest-bearing liabilities

\bn.

918.9

964.4

929.2

Net interest-bearing liabilities

\bn.

834.7

863.4

835.5

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 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 caused bydisasters 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 inCore 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.

41

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

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

42

FYE2022

FYE2023

1H

1H

YoY
Difference% Change

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

45.0
45.4
-13.0
-10.7

49.6
52.0
-15.1
-14.3

+4.6
+6.6
-2.1
-3.6

+10.3%Cash flows from operating activities

66.6

72.1

+5.5

+8.2%

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

-33.2
-1.2
4.6

-42.6
-1.7
2.1

-9.4
-0.5
-2.5

Cash flows from investing activities

-29.8

-42.2

-12.4

-41.4%

Free cash flow

36.7

29.8

-6.9

-18.7%Cash flows from financing activities

-43.0

-25.4

+17.6

+40.8%

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

2. Financial Profile

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

FYE2021

FYE2022YoY

FYE2023

Full-term

Full-term

Difference % change

Forecast's YoY

Full-term forecast Difference % change

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

77.7
86.3
0.5
-15.3

91.6
92.4
-20.6
-14.6

+13.9
+6.1
-21.1
+0.7

+17.9%

99.0
104.0
-19.7
-19.3

+7.4
+11.6
+0.9
-4.7

+8.1%

Cash flows from operating activities

149.2

148.7

-0.5

-0.3%

163.9

+15.2

+10.2%

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

-60.0
-0.7
1.1

-74.4
-2.0
5.6

-14.4
-1.3
+4.5

-112.2
-6.8
4.6

-37.8
-4.8
-1.0

Cash flows from investing activities

-59.6

-70.8

-11.2

-18.7%-114.4-43.6-61.5%

Free cash flow

89.5

77.9

-11.6

-13.0%

49.4

-28.5

-36.5%Net interest-bearing liabilities

858.1

835.5

-22.6

839.5

+4.0

（Of which, hybrid financing amount）

250.0

250.0

－

250.0

－

Adjusted net D/E ratio

1.15

0.94

-0.21

0.82

-0.12

(Debt situation）

43

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

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

FYE2023

YoY

FYE2022

FYE2023

YoY

Q4

Q2

Difference

Q4

Q2

Difference

Cash and cash equivalents

93.6

101.0

+7.4

Trade payables

115.1

124.6

+9.5

Trade receivables

218.4

236.4

+18.0

Interest-bearing liabilities

929.2

964.4

+35.2

Inventories

80.0

98.9

+18.9

Others

271.5

323.5

+52.0

Others

30.2

61.0

+30.8

1,315.8

1,412.6

+96.8

422.4

497.5

+75.1
Share capital and capital surplus, etc

569.5

593.4

+23.9

Other components of equity

59.1

117.2

+58.1

owners of parent

628.7

710.4

+81.7

Non-controlling interests

32.4

32.5

+0.1

661.1

743.0

+81.9

1,977.0

2,155.6+178.6

Total current assets

44

FYE2022

Total liabilities

Property, plant and equipment

729.6

794.5

+64.9

Goodw ill

485.1

518.1

+33.0

Intangible assets

241.3

249.2

+7.9

Others

98.3

96.2

-2.1

Total non-current assets

1,554.5

1,658.1+103.6

Total equity

Total assets

1,977.0

2,155.6+178.6

Total liabilities and equity

Equity attributable toNovember 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

Results overview by Segment
FYE2022（Unit: ￥ bn.）

1H

1H

(Apr.-Sep.)(Apr.-Sep.)
194.4
12.7

8.1%

6.5%

Segment OI

107.3
14.1

145.9
16.0

Segment OI margin

13.1%

11.0%

Revenue
Segment OI

94.9
12.7

136.3
15.9

Segment OI margin

13.4%

11.7%

Revenue

Gas business in A&O*

Segment OI

58.9
6.6

81.8
8.9

*A&O: Asia and Oceania.

Segment OI margin

11.3%

10.9%

Revenue
Segment OI

12.8
2.9

15.1
3.3

Segment OI margin

23.2%

21.8%

0.1
-0.5

0.0
-0.7

Core OI

447.3
49.8

573.6
56.1

Core OI margin

11.1%

9.8%

Gas business in Japan

Segment OI
Segment OI margin
Revenue

Gas business in the U.S.

Gas business in Europe

Thermos business

Revenue

Adjustment

Segment OI

Revenue

Consolidated total

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

YoY
Composition
ratio

173.2
13.9

Revenue

45

FYE2023

33.9%
22.6%

25.4%
28.6%

23.8%
28.3%

14.3%
15.9%

2.6%
5.9%

0.0%
-1.4%

100.0%
100.0%

Difference% Change

Forex impact

+21.2
-1.2

+12.2%
-9.1%

+0.2
+0.0

+38.6
+1.9

+35.9%+14.0%

+24.5
+3.3

+41.4
+3.2

+43.6%+25.1%

+5.7
+0.7

+22.9
+2.3

+38.8%+34.6%

+9.0
+1.0

+2.3
+0.4

+17.9%+11.0%

+0.1
+0.0

-0.1
-0.2

―
―

+126.3+6.3+28.2%+12.7%+39.7+5.2

Revenue growth by Product (First half)
Gas business in Japan*

PackagedBulk
On-siteSpecialty gases

Gases

Subtotal

Equipment andIndustrial Gases-related

installation, other

Electronics-related

Subtotal

Total

Revenue

Gas business in the U.S.

Gas business in Europe

Gas business in A&O

YoY

YoY

YoY % Change

YoY

YoY % Change

YoY

YoY % Change% Change% Changeexc. FX impact% Changeexc. FX impact% Changeexc. FX impact+5.5%+12.2%+22.7%+7.8%+14.6%+26.1%+32.7%+37.9%+9.9%+30.4%+2.6%+8.0%+12.2%-10.6%+6.1%+19.0%+59.0%+56.2%+18.9%+46.9%+12.2%+49.9%+47.2%+12.1%+38.5%+34.3%+33.2%+40.8%+53.5%+41.1%+16.4%+17.1%+20.8%+30.7%+22.3%+1.2%+35.3%+7.3%+63.5%+19.0%+56.9%+33.0%-3.2%+27.6%

+4.7%
－
+4.7%

-1.3%
-1.3%

+24.2%+63.7%+31.0%+7.1%+43.9%+13.3%+12.2%+35.9%+10.6%+43.6%+35.4%+38.8%+20.4%－* In the Gas business 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, other46

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

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

Revenue composition
By Industry

By Segment

左
S

3%
13%

14%

In

27%

5%

34%
1H FYE2023

1H FYE2023\573.6bn.

\558.4bn.

18%

S(exc. Thermos business)

24%

In

20%
9%
8%

25%
Japan

U.S.

EuropeAsia & Oceania

Thermos

Steel & Metals

Automobiles & Other transportation

Electronics

Food & Beverage

Healthcare

Chemicals & Energy

Others47

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

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

Revenue

OI margin

9.3%

646.2

740.3

850.2

818.2

2019.311.0%

2020.32021.32022.3（¥ bn.）

Hybrid Finance (HBF)2018.3

10.6%

Net debt excluding HBF
Adjusted net D/E ratio*

1.15
0.94

66.8

2019.32020.32021.32022.3（¥ bn.）

10.4%

76.6
62.5

8.6%

72.8

5.6%

48.9

41.2

2018.32019.3

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.

48

2018.32019.32020.3

6.7%

6.7%

53.3

55.2

64.1

2020.32021.32022.3

6.3%

Depreciation
and amortization（¥ bn.）CAPEX% Sales

7.3%

60.0

7.8%

74.4
43.2

695.7

（¥ bn.）

NI margin

101.1

88.8

Capital expenditures
9.7%

1.45

10.9%

Profit attributableto owners of the parent

7.6%

93.9

Net interest-bearing debts

1.54

9.0%

957.1

59.8

2018.3（¥ bn.）

Operating income（IFRS）

2021.32022.3*It’s recorded on a construction basis until FYE2019 and on a cash basis from FYE2020 onwards.

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

2018.3

83.7

86.3

2020.32021.3

92.4

56.1

2019.32022.3Glossary: EBITDA margin／ROCE after Tax
EBITDA marginand EBITDA

EBITDA（￥ bn.）（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

16.0%

103.2

2018.3

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

16.5%

121.9

2019.3

20.5%

21.2%

174.1

173.6

2020.32021.3

20.4
%

195.1

2022.3（Reference）

ROCE after Tax
and NOPAT（￥ bn.）

8.4%

6.1%

4.5%

（￥ bn.）

ROCE

ROCE after Tax（Interest-bearing debt + Total equity attributable to owners of parent）*

ROCE and Core OI

4.6%

4.4%

64.6

62.8

4.8%

6.2%

6.4%

6.1%

90.3

87.2

2020.32021.3

6.8%* The average of the amounts at the end of the comparative fiscal year s of the previous and current fiscal years is used.

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.

49

43.4

47.9

2018.32019.32020.3

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results

2021.373.0

2022.360.0

65.8

2018.32019.3102.7

2022.3

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

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

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
Flatbed truck

Supply via Cylinder

50

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）

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 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.

51

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 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 eventsWeb IR Conference on Sustainability initiatives
December 6, 2022
Q3 FYE2023 Earnings Call
February 2, 2023

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

NIPPON SANSO Holdings Corporation (Ticker:4091.T)

Headquarters：1-3-26 Koyama Shinagawa-ku, Tokyo 142-0062, Japan

52

November 1, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q2 results© 2022 NIPPON SANSO Holdings Corporation All rights reserved