Q1 FYE2023
Consolidated Financial Results
Earnings Announcement（ Three months ended June, 2022 ）July 29, 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”).

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July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 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.
（Reference）
Currency sensitivity
as rough indication
Impact of devaluation by 1 JPY(Full-term basis)＜Forex rates＞
Average Forex rates
FYE2022

FYE2023

FYE2023
Full-term

Unit：JPY

1Q

1st Half

9M

Full-term

1Q

1st Half

9M

Full-term

Assumption

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

USD

109.76110.10111.45113.04131.25115

EUR

132.44131.16130.96131.11138.75

125

SGD

82.41

82.01

82.77

83.83

94.97

82.7

AUD

84.15

82.33

82.69

83.33

92.52

82.2

CNY

17.06

17.07

17.35

17.65

19.71

17

● 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

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

Unit：¥ bn.
Currency

RevenueCore Operating Income

USD

+2.0

+0.25

EUR

+1.6

+0.2

Contents

1.

Strategic overview

2.

Q1 FYE2023 Business performance

3.

FYE2023 Full-term Forecast

Appendix

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July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

1. Strategic overview

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July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 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.

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July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

1. Strategic overview

Diverse & Experienced Board of Directors
NSHD continues to advance with respect to Corporate Governance. NSHD's board is comprised of Nine experienced
global leaders from diverse backgrounds. Five of them are independent outside directors.
Independent Directors*1

Internal Directors

Hamada Toshihiko
Representative Director,
President CEO
Member of Advisory Committee
on Appointments and Remuneration*2

Kenji Nagata
Director
Representative Director, President,
Taiyo Nippon Sanso Corporation

Akio Yamada
Outside Director
Chairman of Advisory Committee
on Appointments and Remuneration *2

Mitsuhiro Katsumaru
Outside Director
Member of Advisory Committee
on Appointments and Remuneration *2

Thomas Scott Kallman
Director
Chairman and CEO,Matheson Tri-Gas, Inc

Eduardo Gil Elejoste
Director
Chairman and President,
Nippon Gases Euro-Holding S.L.U.

Katsumi Nagasawa
Outside Director
Member of Advisory Committee
on Appointments and Remuneration *2

Masako Miyatake
Outside Director
Member of Advisory Committee
on Appointments and Remuneration *2*1 As defined by Tokyo Stock Exchange listing rules*2 Note that Advisory Committee on Appointments and Remuneration is an organization that advises the Board of Directors. The Board of Directors strives to ensure transparency and objectivity indecision making by consulting the Committee and seeking advice from the independent outside directors when revising bylaws concerning director remuneration, selecting candidates for the
positions of director or auditor, appointing and dismissing the president (CEO), appointing and dismissing executive officers and choosing successors to the president (CEO).

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July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

Miri Hara
Outside Director
Member of Advisory Committee
on Appointments and Remuneration *2

1. Strategic overview

A business initiative: Enhancing Hydrogen supply
Draft underconsideration
This initiative is representative of the Global HyCO team's commitment to "focus on Hydrogen and explore business

opportunities that have the potential to contribute to a Carbon Neutral Society," and we will continue to work to expand our
HyCO footprint.

Petróleos del Perú (Petroperu)
PETROPERÚ is a company owned by the Peruvian state under
private law, dedicated to the transportation, refining, distribution
and sale of fuel and other products derived from oil.
(Source: the company’s website)Long-term Supply Agreement (Hydrogen & Nitrogen)for Refinery plants at Petro Peru Talara refinery in Peru.

8

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

1. Strategic overview

A business initiative: Contributing to a Carbon Neutral society
Draft underconsideration
The facility established by Matheson will have a nameplate capacity exceeding 30 mmscfd*1 H2 production and supply
fromrenewable hydrocarbon feedstocks*2 for Vertex's renewable diesel production, in addition to H2 supply based onconventional natural gas and refinery offgas feedstocks. This is our first HyCO plant that uses renewable feedstock and fuel.

Vertex Energy, Inc.
Houston-based Vertex Energy, Inc. (NASDAQ: VTNR) isan energy transition company focused on the production
and distribution of conventional and alternative fuels.
(Source: the company’s website)Long-term Supply Agreement (Hydrogen) for Renewable Diesel
production in Mobile, Alabama owned by Vertex Energy in the U.S.

*1 mmscfd: million standard cubic feet per day*2 renewable hydrocarbon feedstocks: C1-C10 hydrocarbon streams including bio-naphtha and other bio-offgases

9

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

1. Strategic overview

Key CAPEX for our sustainable growth
We have sought any opportunities to grow more globally, and decided the following capital expenditure in accordance with
our group vision & Medium-term management plan; NS Vision 2026.
7%

左記ドーナツチャート 基礎データ
By Industry

Industrial

38%

Steel & Metals
29%

Electronics

Total

Healthcare
Chemicals & Energy

By Industry

OthersIndustrial

2%

24%* 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.

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July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

1. Strategic overview

Key Highlights

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

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

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July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

2. Q1 FYE2023
Business performance

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July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

2. Q1 FYE2023 Business performance

Consolidated results（Unit: ￥ bn.）

FYE2022Q1

FYE2023
Q1(Apr.-Jun.)(Apr.-Jun.)

YoY
Difference％ Change

Revenue

218.3

276.0

+57.7

+26.4%

Core operating income

24.5

30.2

+5.7

+23.2%

11.3%

11.0%

Non-recurring profit and loss

―

-2.8

-2.8

Operating income（IFRS）

24.5

27.4

+2.9

11.3%
21.9%

10.0%
20.2%

-2.3

-1.9

+0.4

Income before income taxes
Income tax expenses

22.2

25.5

+3.3

5.7

7.5

+1.8

Net income

16.4

17.9

+1.5

+9.5%

16.0

17.2

+1.2

+7.6%

7.4%

6.3%

0.3

0.6

Core OI margin

OI margin
EBITDA margin

Finance costs+11.8%+15.0%(Attribution of net income)Net incom e attributable to owners of the parent

NI margin
Net income attributable to non-controlling interests

13

Forex （Unit: JPY）

USD

109.76131.25(average rate during the period)

EUR

132.44138.75

AUD

84.15

92.52

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results+0.3

2. Q1 FYE2023 Business performanceGas business in Japan

By Industry
Cumulative period basis

14%

16%

Steel & Metals

YoY（Unit: ￥ bn.）

FYE2022

FYE2023

Q1(Apr.-Jun.)

Q1(Apr.-Jun.)

Difference% Change

Automobiles & Other transportation% Changeexc. FXElectronics
Food & Beverage
Healthcare

28%

Revenue

83.0

95.1

+12.1

+14.5%+14.4%

Segment income

6.5

6.0

-0.5

-7.6%

-8.2%

7.8%

6.3%

Segment OI margin

5%

YoY Factors for increase/decrease in this quarterly period and other comment

Chemicals & Energy

27%
Others8%2%

By Product
Cumulative period basis

30%・ Bulk & On-Site (Air separation gases): Shipment volume decreased, but revenue increased due to the effect of price revision.
Cost increases continue due to higher fuel prices.
・ Bulk (LP gas): Although shipment volume decreased, sales increased significantly due to the impact of higher selling prices
linked to purchase prices.

Gases
Equipment andinstallation, other・ Specialty gases: Shipments for electronics industry were strong.
・ Equipment and installation, other: Revenue of industrial gas-related were on a par with the previous year,
but revenue of electronics-related increased significantly.
● EBITDA margin: 11.3% (FYE2023 Q1)

14

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results70%

2. Q1 FYE2023 Business performanceGas business in the U.S.

By Industry
Cumulative period basis

8%

12%
Steel & Metals

YoY（Unit: ￥ bn.）

FYE2022

FYE2023

Q1(Apr.-Jun.)

Q1(Apr.-Jun.)

Difference% Change

Automobiles & Other transportation% Changeexc. FXElectronics

41%

7%

Food & Beverage
Healthcare

Chemicals & Energy

Revenue

51.6

68.8

+17.2

+33.4%

12%+11.5%

Others7%

Segment income
Segment OI margin

7.0

9.3

13.6%

13.5%

+2.3

+32.4%

13%+10.3%

By Product
Cumulative period basis

24%

YoY Factors for increase/decrease in this quarterly period and other comment
・ Bulk & Packaged: Demand remains strong, but distribution costs continue to increase due to driver shortages and inflation factors.
・ On-site: Operating rates and customer demand were on a par with the prior year.

Gases

・ Equipment and installation, other: Demand recovered in welding and cutting related fields.

Equipment and● EBITDA margin: 27.7% (FYE2023 Q1)

installation, other

76%

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July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

2. Q1 FYE2023 Business performanceGas business in Europe

By Industry
Cumulative period basis

22%
30%

Steel & Metals

YoY（Unit: ￥ bn.）

FYE2022

FYE2023

Q1(Apr.-Jun.)

Q1(Apr.-Jun.)

Difference% Change

Automobiles & Other transportation% Changeexc. FX

0.5%

Electronics

3%
Food & Beverage
Healthcare

Chemicals & Energy

Revenue

47.4

64.9

+17.5

+36.8%+30.6%

18%

Others17%

Segment income
Segment OI margin

6.6

8.8

14.0%

13.6%

+2.2

+32.8%

10%+26.6%

By Product
Cumulative period basis

7%

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.

Gases

・ Equipment and installation, other: Revenue of industrial gas-related increased significantly,

Equipment andbut revenue of welding and cutting-related decreased.

installation, other・ Appropriate response to rapid changes in the business environment: Revenue increased significantly due to pass-throughand cost recovery in response to the steep rise in fuel costs that has continued since the Q2 of the previous fiscal year.
● EBITDA margin: 26.6% (FYE2023 Q1)
93%

16

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

2. Q1 FYE2023 Business performanceGas business in Asia &Oceania

By Industry
Cumulative period basis

4%
4%
20%
Steel & Metals

YoY（Unit: ￥ bn.）

FYE2022

FYE2023

Q1(Apr.-Jun.)

Q1(Apr.-Jun.)

Difference% Change

Automobiles & Other transportation% Changeexc. FXElectronics
Food & Beverage
Healthcare

44%

Chemicals & Energy

Revenue

29.2

39.2

+10.0

+34.2%+18.8%

Segment income

3.0

4.6

+1.6

+52.0%+35.3%

10.4%

11.7%

Segment OI margin

23%
Others3% 2%

By Product
Cumulative period basis

22%

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 shipment volume and the impact ofhigher selling prices linked to purchase price.
・ Specialty gases: Revenue increased significantly due to growth in shipment volume for electronics industry in East Asia.

Gases
Equipment andinstallation, other・ 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: 17.5% (FYE2023 Q1)

17

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results78%

2. Q1 FYE2023 Business performance

Thermos business
By Region
Cumulative period basis

14%

YoY
FYE2022

FYE2023

Q1(Apr.-Jun.)

Q1(Apr.-Jun.)

Difference

Revenue

6.7

7.6

+0.9

+13.9%+12.3%

Segment income

1.5

1.9

+0.4

+30.7%+29.8%

22.3%

25.5%

（Unit: ￥ bn.）

Segment OI margin% Change% Changeexc. FXJapan

YoY Factors for increase/decrease in this quarterly period and other comment
・ Japan: Revenue of main products; vacuum insulated mugs and sports bottles, recovered.
Revenue of frying pans remained firm due to continued demand for homeware. Cost increased due to the effect of weak JPY.
・ Asia: Revenue with Korean distributors recovered. Operation of production plants improved from the previous year.
Performance of equity method affiliates improved.
● EBITDA margin: 30.1% (FYE2023 Q1)

18

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

Asia

86%

3. FYE2023 Full-term forecast

19

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

3. FYE2023 Full-term forecast

Consolidated forecast
FYE2022Full-term

FYE2023
Full-term forecast（Unit: ￥ bn.）

YoY
Difference％ Change(Announced on July 29, 2022)

FYE2023 Full-term
forecast (previos)(Announced on May 11, 2022)

Revenue

957.1

950.0

-7.1

-0.7%

950.0

Core operating income

102.7

107.0

+4.3

+4.2%

107.0

10.7%

11.3%

Non-recurring profit and loss

-1.5

-2.0

-0.5

Operating income（IFRS）

101.1

105.0

+3.9

OI margin

10.6%

11.1%

11.3%

EBITDA margin

20.4%

21.0%

21.0%

-9.5

-10.5

-1.0

Income before income taxes
Income tax expenses

91.6

94.5

+2.9

24.9

27.5

+2.6

Net income

66.6

67.0

+0.4

+0.5%

69.0

64.1

65.0

+0.9

+1.4%

67.0

6.7%

6.8%

2.5

2.0

Core OI margin

Finance costs

11.3%

0.5

+3.8%

107.5

-10.5

+3.2%

97.0
28.0

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

NI margin
Net income attributable to non-controlling interests

-0.5

2.0

Forex （Unit: JPY）

USD

113.04115

115(average rate during the period)

EUR

131.11

125

125

AUD

83.33

82.2

82.2

•

20

7.1%

Total Forex impact for FYE2023 Full-term forecast : Negative impacts of ￥5.8 bn. on revenue and ￥0.7 bn. on core operating income.

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

Q&A Session

Representative Director,
President CEO
Toshihiko Hamada

Executive Officer,
Group Finance &Accounting Office,and CFO

Senior Executive Officer,
Group Corporate Planning
OfficeGeneral Manager,
Investor relations,Group Finance &Accounting Office

General Manager,
Accounting,Group Finance &Accounting Office

Keita Kajiyama

Takashi Yoshida

Tsutomu Moroishi
Alan Draper

22

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

Appendix

23

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

NIPPON SANSO Holdings Group Summary

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

Published on July 29, 2022

Corporate Philosophy

Corporate Information（As of March 31, 2022）

Company Name

Nippon Sanso Holdings Corporation

Founded

October 30, 1910

Headquarters

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

81-3-5788-8500

Group Philosophy
Proactive. Innovative. Collaborative.

Representative Director, President CEO
Representative

Toshihiko Hamada

Common stock

37.3 billion yen

Stock information（As of March 31, 2022）

Number of sharesGroup Vision
We aim to create social value through innovative gas solutions that increase industrial productivity,
enhance human well-being and contribute to a more sustainable future.

433,092,837

Number of shareholders

14,709Listed stock exchanges

Main Core businessTokyo Stock Exchange Prime Market

Ticker4091.T

Distribution by share holders (%)

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%

FYE2023 Financial Forecast（IFRS)

19,398\957.1bn.

people

15%

24

US

¥950.0 bn.

Operating income¥107.5 bn.

23%

23%

Japan

RevenueEuropeAsia & Oceania

Thermos

Corporate

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

Net income attributable toowners of the parent

EPS¥65.0 bn.
¥150.18

Our Medium-term management plan Summary

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

Published on July 29, 2022

Capital allocation

Overview
Plan NameNS Vision 2026

Cash-in

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

Period4 years from April 2022 to March 2026

Cash-out\433.0 bn.

Released date

May 11, 2022

［Investment as a whole]

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

Composition ratio by Business

Revenue\975.0-1000.0 bn.

Core Operating Income\125.0-135.0 bn.

EBITDA margin

Group: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＞

25

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%

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 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 itemsin the Company.
FYE2022Q1

FYE2023
Q1

YoY
Difference（Unit: ￥ bn.）

Core operating income

24.5

30.2

+5.7

Non-recurring profit and loss

－

-2.8

-2.8

Operating income（IFRS）

24.5

27.4

+2.9

Items（Unit：￥ bn.）
FYE2022 Q1 result
Item

Total

26

FYE2023 Q1 result
AmountItem— Arbitration of Leasing facilities dispute, etc.
— TotalJuly 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

Amount-2.8-2.8

Key performance indicators
Item

27

Unit

Not
UpdatedFYE2022

FYE2023

FYE2022

Q1

Q1

Full-term

Basic earnings per share

JPY

37.12

39.95

148.13

Overseas sales ratio

％

59.6

63.7

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.

17.1

20.2

76.5

Depreciation and amortization

\bn.

23.2

25.5

92.4

Free cash flow

\bn.

8.1

11.9

77.9

Adjusted net D/E ratio

Times

1.13

0.92

0.94

Interest-bearing liabilities

\bn.

946.1

958.8

929.2

Net interest-bearing liabilities

\bn.

860.9

868.3

835.5

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results（Reference）Preconditions, Definition & Calculations of our KPIs
Glossary

Preconditions and Definitions in this Presentation

Core operating income

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

Interest-bearing debt

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

Hybrid finance

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

Equity-type debt

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

Indicator

Calculations used in this presentation

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

ROE

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

ROCE

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

ROCE after Tax

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

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

28

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

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

FYE2023

Q1

Q1

YoY
Difference% Change

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

22.2
23.2
-10.2
-10.3

25.5
25.5
-10.4
-8.9

+3.3
+2.3
-0.2
+1.4

+15.0%Cash flows from operating activities

24.8

31.8

+7.0

+28.0%

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

-15.8
-1.2
0.3

-19.8
-0.2
0.1

-4.0
+1.0
-0.2

Cash flows from investing activities

-16.7

-19.8

-3.1

+18.9%

8.1

11.9

+3.8

+46.9%

-15.1

-16.8

-1.7

+11.4%

Free cash flow
Cash flows from financing activities

29

FYE2022

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

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

FYE2023

YoY

FYE2022

FYE2023

YoY

Q4

Q1

Difference

Q4

Q1

Difference

Cash and cash equivalents

93.6

90.5

-3.1

Trade payables

115.1

114.3

-0.8

Trade receivables

218.4

225.3

+6.9

Interest-bearing liabilities

929.2

958.8

+29.6

Inventories

80.0

91.7

+11.7

Others

271.5

294.1

+22.6

Others

30.2

40.0

+9.8

1,315.8

1,367.4

+51.6

422.4

447.5

+25.1
Share capital and capital surplus, etc

569.5

578.6

+9.1

Other components of equity

59.1

103.0

+43.9

owners of parent

628.7

681.7

+53.0

Non-controlling interests

32.4

33.3

+0.9

661.1

715.1

+54.0

1,977.0

2,082.5+105.5

Total current assets

30

FYE2022

Total liabilities

Property, plant and equipment

729.6

777.2

+47.6

Goodw ill

485.1

512.7

+27.6

Intangible assets

241.3

251.5

+10.2

Others

98.3

93.3

-5.0

Total non-current assets

1,554.5

1,634.9+80.4

Total equity

Total assets

1,977.0

2,082.5+105.5

Total liabilities and equity

Equity attributable to

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

Results overview by Segment
FYE2023

FYE2022（Unit: ￥ bn.）

Gas business in the U.S.

Gas business in Europe

Q1(Apr.-Jun.)(Apr.-Jun.)
83.0
6.5

95.1
6.0

Segment OI margin

7.8%

6.3%

Revenue
Segment OI

51.6
7.0

68.8
9.3

Segment OI margin

13.6%

13.5%

Revenue
Segment OI

47.4
6.6

64.9
8.8

Segment OI margin

14.0%

13.6%

Revenue

39.2
4.6

Gas business in A&O*

Segment OI

29.2
3.0

*A&O: Asia and Oceania.

Segment OI margin

10.4%

11.7%

6.7
1.5

7.6
1.9

22.3%

25.5%

0.0
-0.1

0.0
-0.4

Core OI

218.3
24.5

276.0
30.2

Core OI margin

11.3%

11.0%

Revenue

Thermos business

Segment OI
Segment OI margin
Revenue

Adjustment

Segment OI

Revenue

Consolidated total

31

Composition
ratio

Q1

Segment OI

Revenue

Gas business in Japan

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

YoY

34.5%
19.9%

25.0%
30.8%

23.5%
29.1%

14.2%
15.2%

2.8%
6.5%

0.0%
-1.5%

100.0%
100.0%

Difference% Change

Forex impact

+12.1
-0.5

+14.5%
-7.6%

+0.0
+0.0

+17.2
+2.3

+33.4%+32.4%

+10.1
+1.4

+17.5
+2.2

+36.8%+32.8%

+2.2
+0.3

+10.0
+1.6

+34.2%+52.0%

+3.7
+0.3

+0.9
+0.4

+13.9%+30.7%

+0.0
+0.0

-0.0
-0.3

―
―

+57.7
+5.7

+26.4%+23.2%+16.3+2.1

Revenue growth by ProductGas business in Japan*

PackagedBulk
On-siteSpecialty gases

Gases

Subtotal

Equipm ent 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+5.4%+13.1%+21.9%+14.9%+15.7%+27.6%+26.7%+35.1%+36.9%+28.5%+6.7%+6.0%+13.0%+14.5%+7.4%+9.1%+44.9%+59.1%+34.5%+38.1%+4.2%+38.3%+51.9%+28.3%+31.8%+14.9%+28.7%+17.5%+54.8%+37.0%+2.2%+15.9%+2.8%+33.8%+21.3%+1.2%+69.5%+12.0%+55.4%+29.6%+51.6%+30.0%+8.3%+26.7%+22.2%－+22.2%+16.6%+16.6%+27.0%+19.3%+25.3%+12.5%+5.4%+10.9%+14.5%+33.4%+11.5%+36.8%+30.6%+34.2%+18.8%－* 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, other32

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

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

Revenue composition
By Industry

By Segment

左
S

3%
13%

14%

In

27%

34%

5%

Q1 FYE2023

Q1 FYE2023\268.3bn.

\276.0bn.

19%S(exc. Thermos business)

24%

In

21%

25%

Japan

33

U.S.

EuropeAsia & Oceania

8%7%Thermos

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

Steel & Metals
Automobiles & Other transportation
Electronics
Food & Beverage
Healthcare
Chemicals & Energy
OthersBusiness performance over the past five years
Revenue（\ bn.）

Operating income（IFRS）
OI margin

9.3%

646.2

740.3

850.2

2019.32020.3818.2

2021.3

Net interest-bearing debts

10.6%

2022.3（\ bn.）

2018.3Net debt excluding HBF

2020.32021.32022.3

10.4%（\ bn.）

Adjusted net D/E ratio*

1.15
0.94

76.6

53.3

55.2

64.1

2020.32021.3

5.6%

2018.3

41.2

2019.3

Depreciation
and amortization

2022.3（\ bn.）

7.8%

74.4

72.8

62.5

6.7%

CAPEX
% Sales

8.6%
7.3%

1.45

6.7%

6.3%

48.9

Capital expenditures
9.7%

NI margin

101.1

88.8

66.8

2019.3（\ bn.）

7.6%

93.9

Hybrid Finance (HBF)

1.54

10.9%

9.0%

957.1

59.8

2018.311.0%（\ bn.）

Profit attributableto owners of the parent

60.0

83.7

86.3

2020.32021.3

92.4

56.1
43.2

695.7

648.3

608.1

585.5

274.9

250.0

250.0

250.0

250.0

2018.32019.32020.32021.32022.3*Adjusted Net D/E Ratio: an indicator of safety (financial soundness) calculated in consideration of this partdue to 50% of the amount raised by HBF is permitted as “Equity" by rating agencies.

34

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

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

2018.32019.32022.3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

20.5%

21.2%

174.1

173.6

2020.32021.3

20.4%

16.5%

195.1

121.9

2019.3

ROCE after Tax
and NOPAT

2022.3（￥ bn.）（Reference）
ROCE and Core OI（￥ bn.）（Return On Capital Employed after Tax ）=NOPAT(Net Operating Profit After Tax)

ROCE after Tax

ROCE

6.1%

8.4%

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

4.5%

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.

35

43.4

2018.373.0

47.9

2019.32020.3

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results

2021.32022.360.0

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

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

（Large-scale supply）

Supply via pipeline

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

Oxygen
O2

Bulk
CO2

Major supply destination（Sector）

NitrogenN2

Tank truck
Argon
Ar

Automobile

Shipbuilding

Construction
machinery

Pharmaceutical
MedicalManufacturing
Glass/Paper
Food/
beverage

LCP

Photovoltaics

Semiconductor

H2

He

Tank truck

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

Supply via Liquid gases form

（ Medium-scale supply）

Supply via Liquid gases form

Packaged
Filling station

Major supply destination（Sector）

Filling station
Flatbed truck

Advanced
medicine

HomecareEngineeringdevelopment

R&D

Sanitation

Flatbed truck

Construction/
Installation

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

Supply via Cylinder36（ Small-scale supply）

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 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.

37

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 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
Q2 FYE2023 Earnings Call

November 1, 2022

www.nipponsanso-hd.co.jp/en/
NIPPON SANSO Holdings Corporation (Ticker:4091.T)
Headquarters：1-3-26 Koyama Shinagawa-ku, Tokyo 142-0062, Japan

38

July 29, 2022 | NIPPON SANSO Holdings Supplementary Materials FYE2023 Q1 results© 2022 NIPPON SANSO Holdings Corporation All rights reserved