July 28, 2023

Notice of consolidate financial results for Q1 FYE2024

Nippon Sanso Holdings Corporation (“NSHD”, President CEO: Toshihiko Hamada) hereby
announces its consolidated financial results for Q1 FYE2024. For details, please refer tothe financial results and earnings announcement materials available on NSHD website.

1. Business performance for Q1 FYE2024
The business environment surrounding the Nippon Sanso Holdings Group (NSHDGroup) in the first quarter of the fiscal year under review (from April 1, 2023 to June30, 2023), has continued to face a challenging and unpredictable business environment
as a result of geopolitical issues in Ukraine, trade tensions between the US and China,
global inflation, and JPY depreciation. Air separation gases (oxygen, nitrogen, andargon) volume, which are supplied via on-site pipeline mainly to steel, chemical, andpetroleum refining industries, have decreased from the previous fiscal year. On theother hand, energy costs have moderated compared to the previously elevated levels
experienced in Europe and the United States. Additionally, the burden of electricity
costs, which constitutes a significant portion of the air separation gases production
costs, has eased compared to the previous fiscal year.
Due to group-wide price management efforts, including cost pass-through, and solid
productivity initiatives, the NSHD Group achieved the following results for the firstquarter of the fiscal year under review.
Revenue on a consolidated basis increased 11.9% year-on-year to \308,903 million,
core operating income increased 34.6% to \40,748 million, operating income increased
48.2% to \40,715 million, and net income attributable to owners of the parent
increased 42.1% to \24,558 million.

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（Unit: ￥ bn.）

FYE2023Q1FYE2024
Q1(Apr.- Jun.)(Apr.- Jun.)

276.0

RevenueCore operating income
Core OI marginNon-recurring profit and loss

YoY
Difference％ Change

308.9

+32.9

+11.9%+10.5+34.6%

30.2

40.7

11.0%

13.2%

-2.8

-0.0

+2.8

+13.3

27.4

40.7

10.0%
20.2%

13.2%
22.0%

Finance costs-1.9-4.4-2.5

Income before income taxes
Income tax expenses

25.5

36.2

+10.7

7.5

10.6

+3.1

Net income

17.9

25.5+7.6+42.2%

17.2

24.5+7.3+42.1%

6.3%

8.0%

0.6

0.9

Operating income（IFRS）
OI margin
EBITDA margin+48.2%+41.8%(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

131.25

139.63(average rate during the period)

EUR

138.75151.89

AUD

92.52

91.94

+0.3

2. FYE2024 Full-term forecast
No revisions have been made to recently announced forecasts.

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（Reference）
Business performance for FYE2024 Q1 by segment

Q1（Unit: ￥ bn.）Japan

United StatesEurope

Asia & Oceania

Segment OI

107.6
11.2

Segment OI margin

6.3%

10.4%

Revenue
Segment OI

68.8
9.3

82.0
11.1

Segment OI margin

13.5%

13.6%

Revenue
Segment OI

64.9
8.8

73.1
13.1

Segment OI margin

13.6%

18.0%

Revenue
Segment OI

39.2
4.6

38.4
4.1

Segment OI margin

11.7%

10.7%

7.6
1.9

7.5
1.4

25.5%

18.8%

0.0
-0.4

0.0-0.3

Core OI

276.0
30.2

308.9
40.7

Core OI margin

11.0%

13.2%

Segment OISegment OI margin
Revenue

AdjustmentSegment OI
Revenue

Consolidated total

Difference% Changeexc. FX% Change

Forex impact

+12.5
+5.2

+13.1%+87.1%+0.0+0.0+13.0%+86.5%+13.2+1.8+19.1%+20.0%+4.3+0.6+12.0%+12.6%+8.2+4.3+12.6%+49.1%

+6.1
+0.8

+2.8%
+36.0%

-0.8
-0.5

-2.1%
-10.6%

+0.9
+0.0

-4.5%
-12.2%

-0.1
-0.5

-1.2%
-27.2%

+0.0
+0.0

-1.6%
-29.5%

+0.0
+0.1

――

+32.9
+10.5

+11.9%+34.6%(Apr.- Jun.)

95.16.0

Revenue

Thermos

Composition
ratio

Q1(Apr.- Jun.)
RevenueYoY

FYE2024

FYE2023

34.8%
27.6%

26.6%
27.5%

23.7%
32.3%

12.5%
10.1%

2.5%
3.5%

0.0%
-1.0%
100.0%
100.0%

――
+11.6
+1.6

+7.4%
+27.7%【Japan】
In the industrial gas-related business, revenue increased year-on-year mainly due tothe effect of sales price revisions against the backdrop of rising costs, despite lower
shipment volumes of core products such as air separation gases, carbon dioxide gas,and LP gas. In addition, sales of specialty gases for the electronics industry were firm,
resulting in an increase in sales. In equipment and installation, both industrial gasrelated and electronics-related businesses posted higher revenues, mainly due to therecording of medium- to large-sized projects on a percentage-of-completion basis.

【United States】
In the industrial gas-related business, revenue increased year-on-year mainly due tothe effect of sales price revisions against the backdrop of rising costs and other factors,
despite lower shipment volumes of core products such as air separation gases. In
equipment and installation, industrial gas-related sales were strong, especially for gasrelated equipment, and electronics-related sales were also favorable, resulting in anincrease in sales.

【Europe】
In the industrial gas-related business, revenue increased year-on-year mainly due to3

the effect of sales price revisions against the backdrop of rising costs and other factors,
despite lower shipment volumes of core products such as air separation gases andcarbon dioxide gas. In equipment and installation, industrial gas-related sales increased
due to strong sales of medical-related equipment. In addition, productivity and cost
reduction efforts contributed to the positive performance of the business.

【Asia & Oceania】
In the industrial gas-related business, revenue increased year-on-year mainly due tothe effect of sales price revisions against the backdrop of rising costs and other factors,
despite lower shipment volumes of core products such as air separation gases. In LP
gas, of which a substantial portion of sales are in the Australia region, unit sales prices
and sales volumes were consistent with the previous fiscal year. In the electronicsrelated business, revenue declined significantly in East Asia due to softness in both gas
and equipment as a result of electronics customers reducing inventory and postponing
capital investment due to their operating conditions.

【Thermos】
In Japan, sales from portable vacuum-insulated mugs and kitchenware such as frying
pans were firm, and revenue increased slightly. Overseas, revenues were generally soft.
Segment income decreased significantly due to rising raw material prices from inflationand production costs increase due to the weak JPY.

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

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Nshd.Info@nipponsanso-hd.co.jp

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