November 1, 2022

Notice of consolidate financial results for Q2 FYE2023

Nippon Sanso Holdings Corporation (“NSHD”, President CEO: Toshihiko Hamada) hereby
announces its consolidated financial results for Q2 FYE2023. For details, please refer tothe financial results and earnings announcement materials available on the website.

1. Business performance for 1H FYE2023 (Apr.-Sep.)
In the business environment surrounding the NSHD Group in the first half of the fiscal
year under review (from April 1, 2022 to September 30, 2022), we faced severe businessenvironment where there were many uncertainties in the economic outlook, such as
global energy cost surge largely due to the prolonged crisis in Ukraine, price hikes acrossthe globe, and further depreciation of the Yen. Nevertheless, the shipment volume of air
separation gases (oxygen, nitrogen, and argon) remained relatively flat compared to thesame period of the previous fiscal year.
Under such circumstances, the NSHD Group achieved the following results for the firsthalf of the fiscal year under review. Revenue on a consolidated basis increased 28.2%
year-on-year to ¥573,699 million, core operating income increased 12.7% to ¥56,185
million, operating income increased 8.2% to ¥53,872 million, and net income attributableto owners of the parent increased 2.5% to ¥35,149 million.

（Unit: ￥ bn.）

RevenueCore operating income
Core OI marginNon-recurring profit and loss

FYE20221H

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

YoY
Difference％ Change

447.3

573.6

+126.3+28.2%+6.3+12.7%

49.8

56.1

11.1%

9.8%

-0.0

-2.3

-2.3

+4.1

49.7

53.8

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

Operating income（IFRS）
OI margin
EBITDA margin

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

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

USD

110.10135.30(average rate during the period)

EUR

131.16139.14

AUD

82.3393.51+0.41

2. FYE2023 Full-term forecast
NSHD hereby announces that its consolidated earnings forecasts announced on July 29,2022 for FYE2023 were revised as follows.

Reasons for the Revision of Revenue for consolidated gas business including Japan, U.S.,
Europe, and Asia & Oceania is expected to increase compared to the previous forecast.
This is mainly due to the effect of favorable currency exchange due to the weak Japanese
Yen and significant increase in prices as a result of inflation and surging energy costs. Asa result, Core Operating Income as well as Operating Income are expected to increase;
however, some areas are experiencing a delay between increased costs and the ability toincrease prices. Also, the outlook remains uncertain and there is concern that future
customer product demand will decrease as the global economy slows.
Segment income for Thermos is affected by higher cost such as raw materials, but isexpected to perform near plan.
Net income and Net income attributable to owner of the parent is expected to increasein spite of the fact that interest expense and corporate income taxes are expected toincrease.
There is no change in the dividend from the forecast previously announced on July 29,2022 (¥18 per share).

2（Reference）
Business performance for 1H FYE2023 (Apr.-Sep.) by segment
FYE2022（Unit: ￥ bn.）
Revenue

Gas business in Japan

Segment OI
Segment OI margin

Gas business in the U.S.

Gas business in Europe

Composition
ratio

1H

(Apr.-Sep.)(Apr.-Sep.)

173.2
13.9

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

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%

Thermos business

Revenue

Adjustment

Segment OI
Revenue

Consolidated total

YoY

FYE2023

1H

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【Gas business in Japan】
In the industrial gas-related business, revenue increased year-on-year due to higher
selling prices for air separation gases, a core product, and LP gas in conjunction withcost increases, although shipment volume declined. Meanwhile, in the electronicsrelated business, revenue from electronic materials gases increased. In equipment andinstallation, both industrial gas-related, and electronics-related revenues increased
compared to the previous year. On the other front, segment income decreased due tothe time lag between manufacturing and distribution cost increases related to energy
and general inflation, etc., and the ability to recover it from customers.

【Gas business in the U.S.】
In the industrial gas-related business, shipment volume as well as revenue of air
separation gases, a core product, were on par with those a year earlier, and sales ofother bulk products increased. Sales from carbon dioxide gases, especially dry-ice, werestrong. In equipment and installation, revenue from welding and cutting equipment
increased significantly compared to the previous year, and sales of the electronicsrelated business were strong.

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【Gas business in Europe】
In the industrial gas-related business, revenue from air separation gases, a coreproduct, despite flat shipment volumes, increased sharply, reflecting successful priceinitiatives offsetting significant surge in energy and other costs. Other businesses werealso firm.

【Gas business in Asia & Oceania】
In the industrial gas-related business, revenue increased year-on-year due to favorable
sales in package gas, and on-site business, offsetting sluggish shipment volume of air
separation gas, a core product. In LP gas, of which a large portion of sales are in theAustralia region, revenue continued to increase due to the pass-through of higher costs
unto customers and steady sales volume. In electronic-related business, revenue
increased due to steady sales of both gases and equipment.

【Thermos business】
In Japan, the Thermos Business revenue significantly increased year on year due tosteady sales of portable mugs and sports bottles after stay-at-home measures wererelaxed since the beginning of the new fiscal year, and strong sales of frying pans andother new products. Overseas, revenues generally increased.

The Nippon Sanso Holdings Group is the world's fourth-largest supplier of industrial, electronic, and medical gases,
operating in four geographic hubs - Japan, the U.S., Europe and Asia & Oceania - covering over 30 countries andregions. In addition, the Thermos business supplies THERMOS branded products to more than 120 countries aroundthe world. Since its foundation as Nippon Sanso Ltd. in 1910, the group stands for creating social value throughinnovative gas solutions that increase industrial productivity, enhance human well-being and contribute to a moresustainable future. With more than 19,000 employees, together, we are “The Gas Professionals” and we all have thesame goal: “Making life better through gas technology”

Public Relations
Nshd.Info@nipponsanso-hd.co.jp

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