October 31, 2023

Notice of consolidated financial results for 1H FYE2024

Nippon Sanso Holdings Corporation (“NSHD”, President CEO: Toshihiko Hamada) hereby
announces its consolidated financial results for 1H (First half) FYE2024. For details, pleaserefer to the financial results and earnings announcement materials available on NSHD
website.

1. Business performance for 1H FYE2024
The business environment around us during the first half of the fiscal year under review(from April 1, 2023 to September 30, 2023) has remained challenging and volatile dueto geopolitical issues in Ukraine and Middle East, trade tensions between the US andChina,

globalinflation,

JPY depreciation,andoperating conditions

withinthesemiconductor industry, one of our key segments. Air separation gases (oxygen, nitrogen,and argon) primarily delivered via on-site mainly to steel, chemical, and petroleum
refining sectors, have shown a decrease compared to the previous fiscal year. In contrast,
there has been a moderation in energy costs, particularly in Europe and the United States,
where costs previously have been high. Additionally, the burden of electricity costs, whichconstitute a substantial portion of the production costs for air separation gases, has
alleviated in comparison to the previous fiscal year.
Furthermore, as a result of our comprehensive group-wide price management strategies,
including successful cost pass-through initiatives, and robust productivity enhancements,
the NSHD Group achieved the following results for the first half of the fiscal year currently
under review.
Revenue on a consolidated basis increased 6.8% year-on-year to \612,571 million, core
operating income increased 45.3% to \81,648 million, operating income increased 51.4%
to \81,576 million, and net income attributable to owners of the parent increased 38.1%
to \48,547 million.

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（Unit: ￥ bn.）

FYE2023

FYE2024

1H

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

Revenue

573.6

Core operating income

YoY
Difference％ Change％ Changeexc. FX

612.5

+38.9

+6.8%

+2.2%

56.1

81.6

+25.5

+45.3%+37.9%

9.8%

13.3%

Non-recurring profit and loss

-2.3-0.0+2.3

Operating income（IFRS）

53.8

81.5

+27.7

9.4%
18.9%

13.3%
22.3%

Finance costs-4.2-10.0-5.8

Income before income taxes
Income tax expenses

49.6

71.5

+21.9

13.2

21.1

+7.9

Net income

36.4

50.4

+14.0

+38.5%(Attribution of net income)Net income attributable to owners of the parent

35.1

48.5

+13.4

+38.1%

6.1%

7.9%

1.2

1.8

Core OI margin

OI margin
EBITDA margin

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

USD

135.30142.61(average rate during the period)

EUR

139.14154.81

AUD

93.51

93.44

+51.4%+44.1%+0.6

2. FYE2024 Full-term forecast
Our consolidated earnings forecasts announced on May 11, 2023 for the full term offiscal year ending March 31, 2024 (April 1, 2023-March 31,2024), were revised asfollows.

Consolidated Revenue and Core Operating income in gas business in Japan, U.S. andEurope are 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 energy costs moderating more than our previous forecast mostly inEurope and U.S. In addition, we continue to focus on price management andproductivity improvement to offset the underlying softness in air separation gas
demand, our main products.
Operating Income is expected to increase from our previous forecast due to theadditional Core Operating income mentioned above in addition to an expected nonrecurring gain to be recorded by year end due to a business reorganization.
Net income and Net income attributable to owner of the parent are expected toincrease due to higher earnings and an anticipated slight improvement in the effective
tax rate and financial costs of the Group.
There is no change in the dividend from the forecast previously announced on May 11,2023 (¥20 per share).

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（Reference）
Business performance for FYE2024 1H by segment

1H（Unit: ￥ bn.）

JapanSegment OI
Segment OI margin
Revenue

United StatesEurope

Asia & Oceania

Thermos

Segment OI

6.5%

10.6%

145.9
16.0

169.5
23.4

11.0%

13.8%

Segment OI

136.3
15.9

147.3
26.3

Segment OI margin

11.7%

17.9%

Revenue
Segment OI

81.8
8.9

78.1
8.5

Segment OI margin

10.9%

11.0%

Revenue
Segment OI

15.1
3.3

15.3
2.8

Segment OI margin

21.8%

18.7%

0.0
-0.70.0
-0.9

573.6
56.1

612.5
81.6

9.8%

13.3%

Revenue

Consolidated total

202.1
21.3

Revenue

Segment OICore OICore OI margin

Difference% Changeexc. FX% Change

Forex impact

+7.7
+8.6

+4.0%
+67.7%

+0.0
+0.0

+4.0%
+67.4%+23.6+7.4+16.1%+45.8%+7.8+0.8+10.2%+38.1%

+11.0
+10.4

+8.1%
+65.7%

+15.3
+1.8

-2.8%
+48.6%

-3.7
-0.4

-4.5%
-4.2%

+2.3
+0.1

-7.1%
-6.0%

+0.2
-0.5

+1.1%
-13.3%+0.0+0.1+0.4%-16.2%

-0.0
-0.2

―
―+38.9+25.5+6.8%+45.3%(Apr.- Sep.)

194.4
12.7

Segment OI margin

Revenue

Adjustment

Composition
ratio

1H

(Apr.- Sep.)
RevenueYoY

FYE2024

FYE2023

33.0%
26.1%

27.7%
28.7%

24.1%
32.3%

12.8%
10.5%

2.5%
3.5%

0.0%
-1.1%
100.0%
100.0%

―
―
+25.7
+3.0

+2.2%
+37.9%【Japan】
In the industrial gas-related business, revenue increased year-on-year mainly due tosales price revisions against the backdrop of rising costs, despite lower shipment

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volumes of core products such as air separation gases, carbon dioxide gas, and LP gas.
In addition, the shipment volume of specialty gases for the electronics industry
declined. In equipment and installation, both industrial gas-related and electronicsrelated businesses posted higher revenues, mainly due to medium- to large-sized
projects accounted for on a percentage-of-completion basis. Meanwhile, there was adecrease in revenue due to the conversion from a consolidated on-site subsidiary to a
joint operation subsidiary.

【United States】
In the industrial gas-related business, revenue increased year-on-year mainly due tosales 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 gas-related
equipment, and electronics-related sales were also favorable, resulting in an increase insales.

【Europe】
Revenue increased year-on-year mainly due to the impact of the weak JPY and sales
price revisions against the backdrop of moderating energy costs as well as lower
shipment volumes of core products such as air separation gases. In equipment andinstallation, industrial gas-related sales increased due to strong sales of gas-related andmedical-related equipment. In addition, productivity initiatives contributed to thepositive performance of the business.

【Asia & Oceania】
In the industrial gas-related business, revenue increased year-on-year mainly due tosales 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, ofwhich a large portion of sales are in the Australia region, sales volumes decreased. In
the electronics-related business, revenue declined significantly in East Asia due tosoftness in both gas and equipment as a result of inventory adjustments andpostponement of capital investment by our customers.

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【Thermos】
In Japan, sales from sports bottles and portable vacuum-insulated mugs were firm, andrevenue increased. Overseas, revenues were generally soft. Segment income decreased
significantly due to rising raw material prices from inflation and production costs increased
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
Nshd.Info@nipponsanso-hd.co.jp

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