FYE2023 Full-term
Earnings Presentation（Fiscal year ended March 31, 2023）

May 19, 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, EPS (Earnings per share), Debt, Net Debt, Adjusted net D/E ratio and Free Cash Flow. NSHD’s management and executive officers
evaluates results and makes operating and investment decisions using both IFRS and non-IFRS measures included in this presentation. These non-IFRS measures exclude certain income,cost and cash flow items which are included in, or are calculated differently from, the most closely comparable measures presented in accordance with IFRS. By including these non-IFRS
measures, management and executive officers intends to provide investors with additional information to further analyze NSHD’s performance, core results and underlying trends. NSHD’s
non-IFRS measures are not prepared in accordance with IFRS and such non-IFRS measures should be considered a supplement to, and not a substitute for, measures prepared inaccordance with IFRS. Investors are encouraged to review the reconciliation of non-IFRS financial measures to their most directly comparable IFRS measure, which are on the part of ourslide deck.
● Financial information
NSHD’s financial statements are prepared in accordance with international Financial Reporting Standards (“IFRS”).

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May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

Notes● 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＞

Unit：JPY

1Q

1st Half

9M

Full-term

1Q

1st Half

9M

Full-term

Assumption

Unit：¥ bn.

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

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

Currency

Revenue

Average Forex rates
FYE2022

FYE2023

FYE2024
Full-termCore Operating Income(Announced on May 11, 2023)

USD

109.76110.10111.45113.04131.25135.30136.85136.00130.00

USD

+2.2

+0.28

EUR

132.44131.16130.96131.11138.75139.14140.83141.62140.00

EUR

+1.9

+0.25

SGD

82.41

82.01

82.77

83.83

94.97

97.12

98.61

99.05

97.10

AUD

84.15

82.33

82.69

83.33

92.52

93.51

93.16

92.67

93.50

CNY

17.06

17.07

17.35

17.65

19.71

19.91

19.81

19.71

19.90

● 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.

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May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

1.

FYE2023 Overview（The first fiscal year in Our MTP; NS Vision 2026）
Representative Director,
President CEO

2.

Agenda3.

FYE2024 Business Plan

Toshihiko Hamada（The second fiscal year in Our MTP; NS Vision 2026）

Financial Profile

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

4.

4

Q&A Session

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

Opening remarks

Representative Director,
President CEO
Toshihiko Hamada

5

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 resultsOur philosophy and vision

Group Philosophy

Group Vision

6

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

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.

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 resultsImplement the “Five focused fields”
Our MTP; Medium-Term management Plan
SloganNS Vision 2026 : Enabling the Future
We formulated our first MTP, NS Vision 2026, after the establishment of
NSHD in Oct. 2020 with the vision that,“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.”
Under the four global regions + Thermos business structure,
we established five focused fields;
Sustainability Management, Exploring New Business toward
Carbon Neutrality (CN),Total Electronics, Operational Excellence,and DX Initiatives.
We will strengthen the group’s comprehensive capabilities
and achieve further growth to provide a bright and comfortable future
for people, society, and the Earth.

7

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 resultsOur MTP

Toward the final fiscal year in NS Vision 2026
Revenue

Environment

JPY 975.0-1,000.0
Billion*Reduction rate of GHG emissions (Base year: FYE2019)18% :FYE2026

32% :FYE2031

Core Operating Income
JPY 125.0-135.0
Billion*

EBITDA Margin

Financial
KPIs
FYE2026

GHG reduced emissions through environmental product offer
Lower customer GHG emissions
through environmental productofferings and applications

FYE2026

Group:≥24%

Safety Management

Japan, the U.S., EU, A&O,
Thermos:

Lost Time Injury Rate

≥17-33%≤1.6
FYE2026≤0.7
ROCE after Tax

≥6%

HR

Rate of female employees≥22% :FYE2026
25% :FYE2031

Adjusted net D/E Ratio
Compliance

Rate of receiving
compliance training

100%
FYE2026* Due to the uncertainty in the global economy, revenue and core operating income are shown in range.

8＞ NSHD group GHG emissions

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

Rate of female
management posts≥18% :FYE2026
22% :FYE2031

NonFinancial
KPIs

Our MTP

Approach for Capital Allocation in NS Vision 2026
IN

OUT
➢ Strategic Investment for

Investment- CN: Carbon Neutral related initiatives- DX: Digital Transformation initiatives

Total

Operating CF¥730.0bn.

¥433.0bn.
Includes¥38.0bn.

of strategic initiatives

Strategic
Thermos

9%

2%
A&O*

Strategic initiatives

12%

Japan

24%

14%

NS Vision 2026
(For 4 yr.)37%

Investment ratio
by Purpose

Investment ratio
by Segment

Dividend &Repaymentof debt

Growth initiatives

45%
24%
Europe27%

6%US
Base/Underlying（Reference）Investment / revenue % by Segment
Japan: 7.4%, US: 10.5%, Europe: 12.9%, *Asia & Oceania: 11.1%, Thermos: 6.9%

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May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

M&AImplement the Eight Non-financial programs
FYE2026
TargetEnvironment

１

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

２
３

CNP Ⅱ: Carbon Neutral Program Ⅱ
ZWP:

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

18%
down

X＞Y

･Breakdown information(Unit: Thousands of tonnes CO2e )X: Lower customer GHG emissions through４
５

environmental product offerings and applications

SWP:

Sustainable Water Program

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

SocialSFP:

Safety First Program＜Safety Management＞● Lost Time Injury Rate

６ QRP:

Quality Reliability Program

７

Talent Diversity Program

TDP:

≤1.6

＜HR＞
● Rate of female employees≥22%● Rate of female management posts≥18%

Governance

８

CPP:

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

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May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

100%1. FYE2023
Overview

2. FYE2024
Business Plan

3. Financial Profile

4. Q&A Session

1. FYE2023 Overview（The first fiscal year in Our MTP; NS Vision 2026）

Representative Director,
President CEO
Toshihiko Hamada

11

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

1. FYE2023 Overview

Summary: Progress toward Financial targets

Deal withcost increases

Advancefinancialsoundness

Both revenue and income increased, supported by demand from resilient markets, FX impact was significant
due to the weaker JPY than prior fiscal year.
● In the FYE2023, Revenue growth; +14.5%, and OI growth; +9.3% (YoY basis excluding FX impact)

Responded to energy and inflation pressures with flexible price management and cost management programs.

Continuous investment in projects with economic potential, dependable debt reduction, and execute stable and reliabledividend payments to our shareholder.
● Adjusted net D/E ratio improved by 13 bps (YoY basis), and the annual dividend per share increased by JPY 4 or 11.8% (planned, YoY basis).

Steady progress toward financial soundness of NS Vision 2026; Adjusted net D/E ratio below ≤0.7

Carbon Neutral

Acquire CN
business
opportunities

Awarded three HyCO* projects (U.S., Peru, and India); expanded global hydrogen production capacity.

Participate in a green hydrogen production & supply project in Belgium. Advancing our knowledge and technology throughstrategic partner alliances.

* HyCO Business: A business that supplies Hydrogen(Chemical formula: H2) and Carbon monoxide(Chemical formula: CO) on-site to petroleum refining and petrochemical manufacturers.

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May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

1. FYE2023 Overview

Summary of Consolidated financial results (FYE2023 Full-term)
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

+0.3

Basic earnings per share (EPS) (Unit: JPY)

148.13168.85+20.72Forex （Unit: JPY ）USD

113.04136.00(average rate during the period)

EUR

131.11141.62

AUD

83.33

92.67

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

・ Total Forex impact for FYE2023 full-term : Positive impacts of ¥79.6bn. on revenue and ¥9.9 bn. on core operating income.

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May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

1. FYE2023
Overview

2. FYE2024
Business Plan

3. Financial Profile

4. Q&A Session

2. FYE2024
Business Plan
（The second fiscal year in Our MTP; NS Vision 2026）

Representative Director,
President CEO
Toshihiko Hamada

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May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

2. FYE2024 Business Plan

Summary: Business environment perspective (Assumptions for forecast)
We implement the "Five focused fields“ strategy while properly responding to the business environment in order to achieve the targets
in NS Vision 2026.

Watch
demand trends

Uncertain economic environment continues :Currency volatility, inflation and high energy prices, global trade friction, and geopolitical risks with supply chain impact
Focus on firm demand in resilient markets; Food, Beverage, Pharmaceutical, Healthcare, etc.
● In the FYE2024, planned revenue growth excluding deconsolidation change and currency +2%; Core OI growth; +5% (YoY excluding FX impact).

Continuesteady operation

Explore business
opportunities

Continue and expand cost control and productivity programs.
Price management and cost recovery flexibility prepared for any cost-surges.
Set appropriate prices for the value of the products and reliability of services we provide to our customers.
Maintain capital discipline and ensure financial soundness.

Seize business opportunities in our technological fields; Combustion, HyCO, CO2 recovery, O2 production,that contribute to the realization of a CN society
Deepen and strengthen relationships with customers to explore and solve potential problems through our Gas technologies.
●Based on the global Total Electronics strategy, we respond flexibly to the demand for electronic material gases in each region.

15

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

2. FYE2024 Business Plan

Summary of Consolidated financial 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

+0.2

Basic earnings per share (EPS) (Unit: JPY)
ROCE after Tax
Adjusted net D/E ratio

168.855.4%
0.81

162.87
5.4%
0.85

-5.98

Forex （Unit: JPY ）USD

136.00130.00(average rate during the period)

EUR

141.62140.00

AUD

92.67

93.50

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

In the FYE2024, planned revenue growth excluding deconsolidation change and currency +2%; Core OI growth; +5% (YoY excluding FX impact).
・Total Forex impact for FYE2024 full-term : Negative impacts of ￥18.3 bn. on revenue and ￥2.2 bn. on core operating income.

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May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

2. FYE2024 Business Plan

Japan
What we need to accomplish（Toward the final fiscal year in NS Vision 2026）

Business Performance

Revenue composition by industry

Legend（Last three fiscal years）（FYE2023 actual: Cumulative period basis）

1. Strengthen Core Businesses earning power & profitability

Arrows indicate theoutlook for the next
fiscal year (FYE2024)

Increase profitability by streamlining and optimizing the business foundation.

2. Growth exploration and expansion

14.5%
13.5%

Develop business areas through New materials for compound semiconductor
manufacturing processes, Stable isotopes, Biotechnology, and Additive manufacturing.

17%

EBITDA margin

12.1%
8.7%

Segment
strategy

Growth- Enhance new products and services- Provide and expand Industrial Gas Solutions
for customers
Business Transformation- Review under performing business portfolio

Automobiles & Other
transportation
Electronics

Core OI margin（Unit：￥ bn.）

341.9

372.0

Healthcare

420.4

26%
Chemicals & Energy
27%

29.8

30.9

Others31.6（Our perspective as of the beginning of FYE2024）

Core OI
9%

Risks

・Industrial gases market size trends
・Greater uncertainty in electricity cost trend
・Supply chain shortages or delays

2021

2022

Opportunities

・Equipment & construction projects in the Electronics market
・Demand for specialty gases for next-generation semiconductors

175%

Food & Beverage

Revenue

Surrounding environment

Steel & Metals

8.3%
7.5%

15%

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

2023

（FYE）

1%

2. FYE2024 Business Plan

Japan：Main business initiatives
NS Vision 2026： Five focused fields

18

Ongoing and/or FYE2024 Initiatives

Sustainability Management

・ Established “The Women's Activity Promotion Project”
・ “The Technical Academy” established to promote education & training
programs related to safety management

Exploring New Business toward CN

・“The CN business project” established to promote sales & marketing activities
・Promote Oxy-fuel combustion technology and CO2 gas recovery, purification,and effective utilization technology

Total Electronics

・Promote semiconductor Air Separation Units・Identify and market new R&D related material
・Pursue new projects based on customers’ investment plans

Operational Excellence

・Optimize manufacturing facility and plant operations
・Price management (Promote pricing activities)

DX Initiatives

・Accelerate remote operation of manufacturing facilities utilizing digitaltechnologies to improve productivity
・Increased productivity through the use of digital tools, such as the expansionof web-based ordering and the digitization of invoices

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

2. FYE2024 Business Plan

United States
What we need to accomplish（Toward the final fiscal year in NS Vision 2026）

Business Performance

LegendRevenue composition by industry（Last three fiscal years）

１．Lead industry safety, quality, and profit growth
２．Increased focus on the food processing, fabrication,and semiconductor markets
３．Enhance sustainability programs that support profit growthand create increased shareholder value

27.5%

26.4%

（FYE2023 actual: Cumulative period basis）
Arrows indicate theoutlook for the next
fiscal year (FYE2024)

25.7%

8%

EBITDA margin
Steel & Metals

12.2%

12.2%

12.2%

42%

Core OI margin

Segment
strategy

Growth- Organic Growth through enhanced
cross-selling efforts in targeted markets- Expansion of onsite generator installations- Pursue targeted M&A

Surrounding environment（Unit：￥ bn.）

Chemicals & Energy

23.1

224.8

Revenue

37.0
27.3

7%

Core OI

・Economic trends
・Increase in production power & transportation costs
・Staffing challenges related to low unemployment
・Cross-selling through complementary product lines especially food processing
product capabilities
・Fabrication market growth through Bulk, Packaged, hardgoods, and fuel gas capabilities
・Semiconductor opportunities related to US CHIP Act
・Inflation Reduction Act and related CN opportunities

2021

2022

（Reference）Average Forex rates in the fiscal year
・ USD

105.94113.04

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

2023

（FYE）

Unit: JPY

136.0013%

Others13%

Opportunities

7%

Healthcare

303.0

Risks

19

Automobiles & Other
transportation
Electronics
Food & Beverage

189.9（Our perspective as of the beginning of FYE2024）

10%2. FYE2024 Business Plan

United States：Main business initiatives
NS Vision 2026： Five focused fields

Ongoing and/or FYE2024 Initiatives

Sustainability Management

・Improve employee safety awareness and reduce lost time injury rate
・Identify renewable energy sources for Bulk production and Onsite generators
・Assess actions to reduce water consumption in WRI Aqueduct
high stress areas

Exploring New Business toward CN

・Integration of large-scale oxygen plants into sequestration technology chain
・Pursue green hydrogen production opportunities

Total Electronics

・Expand production capacity of strategic semiconductor process gases
・Continue improvement of capabilities to supply sub assemblies
to major semi equipment manufacturers

Operational Excellence・Achieve enhanced cost savings through “The Right Way” program
・Offset cost increases and achieve profit improvement throughprice management

DX Initiatives

・Implement automation of material handling operations*・Reduce capital expenditure through automated cylinder management system* material handling operations: Consistent handling of goods, including unloading, transshipment, pickup, transfer, loading, and shipping operations within the Company

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May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

2. FYE2024 Business Plan

EuropeWhat we need to accomplish（Toward the final fiscal year in NS Vision 2026）

１．Optimize base business
２．Focus on human resource excellence
３．Reinforce governance４．Accelerate Operational Excellence
５．Higher growth compared to peers

Business Performance（Last three fiscal years）

Segment
strategy

Surrounding environment（Our perspective as of the beginning of FYE2024）

Arrows indicate theoutlook for the next
fiscal year (FYE2024)

27.7%
19%

25.6%

EBITDA margin

30%

Steel & Metals
Automobiles & Other
transportation
Electronics

12.8%

12.5%

Core OI margin（Unit：￥ bn.）

Opportunities

・ Recovery in the European economy
・ Business development & new business opportunities
・ Government subsidized investments related to CN initiatives

3%

Healthcare

272.8

Chemicals & Energy

209.7
21.0

Revenue

34.9

160.0

Others18%

26.3

Core OI
10%

・Economic trends
・Energy price volatility (customer: production utilization, our side: cost impact)・Shortage in/Inability to supply due to supply chain disruption

1%

Food & Beverage

Risks

21

Revenue composition by industry（FYE2023 actual: Cumulative period basis）

31.2%

13.1%
Growth- Focus on resilient markets- Pursue M&A opportunities
Optimize Base Business- Invest in gas application technology- Evaluate market mix- Realize optimal geographical footprints

Legend2021

2022（Reference）Average Forex rates in the fiscal year
・ EUR

124.07131.11

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

2023

（FYE）

Unit: JPY

141.6219%

2. FYE2024 Business Plan

Europe：Main business initiatives
NS Vision 2026： Five focused fields

22

Ongoing and/or FYE2024 Initiatives

Sustainability Management

・Promote “Women's Sponsorship Program”
・Continue “Safety First : Everyday, everywhere” campaign

Exploring New Business toward CN

・Focus on Oxy-fuel combustion technology
・Pursue biomethane related new business・Participate in Green Hydrogen manufacturing project

Total Electronics

・Strengthen sales of electronics material gases

Operational Excellence

・Promotion of cost reduction and productivity management
・Maintain robust price management to reflect volatile cost situation

DX Initiatives

・Utilization of DX in process automation for maintenance, transportation, andproduction plan analysis.

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

2. FYE2024 Business Plan

Asia & Oceania
What we need to accomplish（Toward the final fiscal year in NS Vision 2026）

Business Performance

LegendRevenue composition by industry（Last three fiscal years）

１．Tier 1 supplier in each region with diverse product line
２．Efficient & disciplined operations with continuous
improvement and productivity enhancement initiatives
３．Improve revenue growth and OI margin.

（FYE2023 actual: Cumulative period basis）
Arrows indicate theoutlook for the next
fiscal year (FYE2024)

16.8%

3%

16.0%

EBITDA margin

15.5%

5%

19%
Steel & Metals

10.4%

Segment
strategy

Growth- Large scale onsite project and enlarge ASU
capabilities- New products & sales area expansion- Pursue global HyCO Opportunities
Management- Launch new management structureCore OI margin

8.7%
Food & Beverage（Unit：￥ bn.）

Healthcare

159.9

24%

123.5
102.0

Surrounding environment（Our perspective as of the beginning of FYE2024）

12.8

Revenue

15.4
Core OI

8.9

Risks

・Increase in power and logistics costs (production & transportation costs)
・Trade Friction
・Changes in government political & economic policies

Opportunities

・Continuing firm demand in the emerging markets
・Increase in demand for semiconductor specialty gases

2021

2022

2023

（Reference）Average Forex rates in the fiscal year
・ AUD

76.71
77.76

92.67

83.83

99.05

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results（FYE）

Unit: JPY

83.33

・ SGD

23

Automobiles & Other
transportation
Electronics

9.7%

44%
Chemicals & Energy
Others

3% 2%

2. FYE2024 Business Plan

Asia & Oceania：Main business initiatives
NS Vision 2026： Five focused fields

Ongoing and/or FYE2024 Initiatives
・Introduced sub-segment management structure to strengthen governance

Sustainability Management

24①SEA＆I
②EAE
③CIG
④OIG

: Southeast Asia and India: East Asia Electronics: China Industrial Gases: Oceania Industrial Gases

Exploring New Business toward CN

・Proactively promote our group’s technologies that contribute to
reduce environmental impact (i.e. Oxy-fuel combustion, Argon welding, etc.)

Total Electronics

・Strengthening the capability of the electronics businessthrough collaboration between new sub-segments EAE and Japan・Upgrade and expand semiconductor related material gas supply capability
with optimal operation of manufacturing facilities

Operational Excellence・Improve and upgrade price management and cost control reflecting
Europe/US/Japan initiatives

DX Initiatives

・Upgrade and enhance IT security level throughout the segment
・Promote work saving and cost reduction by automating operation through DX

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

2. FYE2024 Business Plan

Thermos
What we need to accomplish（Toward the final fiscal year in NS Vision 2026）

Business Performance

Legend（Last three fiscal years）

To grow sustainably and create value trusted company

Revenue composition by industry（FYE2023 actual: Cumulative period basis）

Arrows indicate theoutlook for the next
fiscal year (FYE2024)

28.9%
27.1%

16%

24.8%

EBITDA margin

24.0%

Segment
strategy

Growth- New products, direct operating stores,
e-commerce platform business expansion- Develop an interactive communication
system with customers- Increase Thermos brand awarenessand maximize the brand equity

21.6%

Core OI margin

19.9%

Asia

（Unit：￥ bn.）

23.9

Japan

26.8

30.1
Revenue

Surrounding environment（Our perspective as of the beginning of FYE2024）

6.4
5.1

84%

6.0
Core OI

Risks

・Increasing costs in raw material & energy due to yen depreciation, etc.
・Surging labor costs in overseas production plants

Opportunities

・Demand increase for portable containers due to price increases for plastic
bottled beverages
・Inbound demand from visitors to Japan・Increasing attention and interest in sustainable products due to growing
awareness on environmental issues

25

2021

2022

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

2023

（FYE）

2. FYE2024 Business Plan

Thermos：Main business initiatives
NS Vision 2026： Five focused fields

26

Ongoing and/or FYE2024 Initiatives

Sustainability Management

・Promote sustainable beverage containers to contribute to waste reduction
・Improve work environment through employee safety training and optimizationof manufacturing facilities
・Active promotion of HR diversity (train female managers, hiring people with disabilities, etc.)

Exploring New Business toward CN

・Reduction of energy consumption through production optimization

Operational Excellence

・Reduce procurement cost for raw material・Streamline production processes

DX Initiatives

・Expand E-commerce business in growing markets

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

1. FYE2023
Overview

2. FYE2024
Business Plan

3. Financial Profile

4. Q&A Session

3. Financial Profile
Executive Officer,
Group Finance &Accounting Office, and CFO
Alan Draper27

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

3. Financial Profile

Financial management｜Optimal Fund allocation● 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.
BudgetAdjusted net D/E Ratio(End of FYE2024)

Financialsoundness

Leverage Reduction― Reduction of financial expenses

0.85

Fortifying the capital structure
Debt ratio expected to temporarily increase due to the assumed impact ofrefinancing a tranche of hybrid debt to clean debt

BudgetCAPEX and investment(Cash basis: ￥ bn.)

Growthinvestment

Shareholder
Returns

28

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

140.4

Economies of scale x improve customer density
Pursue group synergies and globalization efforts
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

Budgetannual dividend(￥)

Stable & business performance-linked― Fulfillment of shareholders‘and investors' expectations40

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

9th consecutive year increasing shareholder dividend(planned)3. Financial Profile

Cash flow (Result for FYE2023 Full-term)
Strong operating cash flow performance enables high capital investment, dividend increases, and debt reduction.

（Unit：￥ bn.）

Free cash flow*1
89.9

94.7
187.9

3.3
45.8

22.2

15.5
15.1

2.9

132.2

93.6
End ofFYE2022 cash

Operatingcash flow

CAPEX &
Investments
and loans

Otherregardinginvesting activities

Long-term
Debt raising/
repayment *2*1

Free cash flow：Items reconstructed from consolidated statements of cash flows prepared in accordance with IFRS. Please refer to Appendix P.37.

*2

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

*3

Other：Indicates items such as cash lease obligations, acquisition of investments.

29

Short-term
Debt raising/
repayment *2

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

DividendPaidduring term

Otherregarding*3
financing activities

Others(Forex etc.)

End ofFYE2023 cash

3. Financial Profile

Cash flow forecast／Dividend
Cash flow forecast

Dividend Trend

Leveraging our strong cash generation to repay debt
and invest in the future while returning profits to ourshareholders

Stable and reliable dividend linked to performance
Dividend payout ratio
27.1%（Unit：￥ bn.）

24.3%

26.2%

23.9% 24.9%

22.7% 23.5% 23.0% 22.5%

20.3%

24.3

（Unit：￥ ）

38

CAGR

34.5

34

+14%
28
23

25

20

132.2

17.7

16

0.0
End ofFYE2023 cash
（Actual）

Free*1
Cash flow

Scheduled
debt *2
maturities

Annualdividend
payment

Other
regardingfinancing
activities

2.2
Forex effect,
and others

122.3
End ofFYE2024 cash
（Forecast）

12

13

6

7

Free cash flow：Cash flows from operating activities + (Announced) Divesture Proceeds – CAPEX. Please refer to Appendix P.37.

*2

Scheduled debt maturities：Indicates cash paid (including Repayments of lease obligations)30

Year-end

14

16

Interim

13

9

6

6

7

9

11

2014

2015

2016

2017

2018

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

20
18

11
14

14

16

18

12

2019

2020

2021

2022

2023

（FYE）

［Planned］

J-GAAP← →IFRS
*1

12

30

Closing remarks

Representative Director,
President CEO
Toshihiko Hamada

31

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

Q&A Session

Representative Director,
President CEO
Toshihiko Hamada

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

33

Member of the Board,
Chairman and CEO,Matheson Tri-Gas, Inc

Member of the Board,
Chairman and President,
Nippon Gases
Euro-Holding S.L.U.

Thomas Scott Kallman

Senior Executive Officer,
Group Corporate Planning
OfficeRepresentative Director
and President ofThermos K.K.

Tsutomu Moroishi

Yuji Kataoka

Eduardo Gil Elejoste

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

Senior Executive Officer,
Group Sustainability
Management Office,and CSO

Executive Officer,
Group Finance &Accounting Office,and CFO（Chief Sustainability Officer）

Alan Draper
Takeshi MikiAppendix

34

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation 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%

0.4%
32%

22%

19,579¥1,186.6bn.

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

Operating income¥127.5 bn.

people

15%
23%

26%
Japan

35

US

EuropeAsia & Oceania

Thermos

Corporate

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation 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＞

36

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 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

40%

50%

Growth initiatives

60%

12%
70%

Strategic initiatives

80%

M&A

90%

6%
100%

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

FYE2022

FYE2023

YoY

FYE2024

Budget's YoY

Full-term

Full-term

Difference % change

Full-term f orecast

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%

102.0
106.7
-5.5
-32.1

-3.5
+1.0
+16.7
-31.1

-3.3%

Cash flows from operating activities

148.7

187.9

+39.2

+26.4%

171.1

-16.8

-9.0%

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

-140.4
－
3.8

-48.6
+2.9
+7.1

Cash flows from investing activities

-70.8

-98.0

-27.2

+38.4%-136.6-38.6+39.3%

Free cash flow

77.9

89.8

+11.9

+15.4%

34.5

-55.3

-61.6%Net interest-bearing liabilities

835.5

809.5

-26.0

784.5

-25.0

（Of which, hybrid financing amount）

250.0

250.0

－

250.0

－

Adjusted net D/E ratio

0.94

0.81

-0.13

0.85

+0.04

(Debt situation）

37

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

Debt/Equity Performance (FYE2023)

UndatedAdjusted
net D/E ratio
Financial management
net D/E ratio

Net D/E ratio（General net D/E ratio）（Our internal financial discipline indicator）

0.81

1.12

(YoY basis: 13 bps improvement)(YoY basis: 21 bps improvement)

0.86(YoY basis: 11 bps improvement)

Forecast at the End of FYE2024（March 31, 2024）

0.85
Net interest-bearing debt

Net interest-bearing debt ― Equity-type debt*

Total equity attributable to owners of parent

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

38

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

Net interest-bearing debt
― Lease obligations ― Equity-type debt*
Total equity attributable to owners of parent― Other components of equity + Equity-type debt*

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

39

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

83.7

86.3

92.4

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 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results2019.32023.3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%

40

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

2020.32021.373.0

2022.3

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results

87.4

90.3

87.2

2020.32021.3

102.7

65.8

2023.32019.32022.32023.3

Industrial gas supply system
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 establish 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 install 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

41（ Small-scale supply）

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation 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.

42

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation 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

Annual Shareholder meeting
Q1 FYE2024 Earnings Call

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, Japan43

May 19, 2023 | NIPPON SANSO Holdings Analyst Conference presentation FYE2023 results© 2023 NIPPON SANSO Holdings Corporation All rights reserved