Q3 FYE2024
Consolidated Financial Results
Earnings Announcement( Nine months ended December, 2023 )February 2, 2024
Tokyo, Japan

Draft as of2024/2/2
10：00

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”).

2

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 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.
＜Forex rates＞

Average Forex rates
FYE2023

FYE2024

Assumption

Unit：¥ bn.

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

Currency

Revenue

FYE2024
Full-term

Unit：JPY

1Q

1st Half

9M

Full-term

1Q

1st Half

9M

Full-term

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

Core Operating Income(Announced on October 31, 2023)

USD

131.25135.30136.85136.00139.63142.61143.78142.61

USD

+2.2

+0.28

EUR

138.75139.14140.83141.62151.89154.81

156.24154.81

EUR

+1.9

+0.25

SGD

94.97

97.12

98.61

99.05

103.66105.79106.90105.79

AUD

92.52

93.51

93.16

92.67

91.94

93.44

94.47

93.44

CNY

19.71

19.91

19.81

19.71

19.67

19.87

20.01

19.87

● 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.
Notes that from Q3 FYE2023, the reportable segment names simplified, but the scope of segment aggregation didn’t change.

3

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

Contents

1.

Strategic overview

2.

Q3 FYE2024 Business performance-1. Q3 performance（Oct. - Dec.）-2. Nine months Cumulative performance

3.

FYE2024 Full-term Forecast

Appendix4

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

1. Strategic overview

5

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

1. Strategic overview

Key Highlights

Enhance profitability
Continue disciplined price management

Seize business opportunities in the Electronics industry
Explore new fields where we can perform our strengths
Closer contact with customers to deliver solutions

6

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

WIP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.

7

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

1. Strategic overview

Group’s integrated strength: Operational Excellence
Holding Company Structure has enabled inter-regional collaboration which is progressing steadily with positive results.

Aim of the Holding Company Management①②③Timely decision-making through authority delegation, and appropriate management resource allocation
Greater clarity in business execution responsibilities and performance
Enhance the group’s comprehensive capabilities by sharing regional strengths and advantages
Inter-regional

Key Features
・Value provided: Reliable gas supplier and robust supply networkJapan

The U.S.

NSHD leads and facilitates
the global sharingof best practices

Asia &
Oceania

EuropeSegments share, learn, and modify best businesspractices & operational excellence activities

8

Industrial gases business・Local production for local consumption: Businesses located in consumption areas

Commonfeature・Product characteristics: Difficult to differentiate. Customer relationships, technology,
applications and responsiveness are critical.

・Supply mode: On-site, bulk, and packaged
・Cost structure: Electricity costs (gas production cost) and distribution costs account fora significant portion of cost stack.

・Business Composition: Sales Composition by Products and Industries
・Business Environment: Market Growth potential

Characteristicfeature・Sales strategy: Relationship with customers (historical background, position, etc.)
・Business density: The density of the supply network in each area
・Business Practices: Contract terms and scopes, etc.

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

1. Strategic overview

Improve profitability of Japan business: Milestone of Operational Excellence

Draft underconsideration

We focus on maximizing the value of our contribution to our customers so that we achieve sustainable profitable growth bypromoting "Grow further," "Enhance the value contributed to customers," and "Price management".
Japan business（TNSC）Group vision
As The Gas Professionals, starting from industrial gas, we will continue tobe a company that maximizes the potential of gas and contributes to thedevelopment of all industries and solutions of social issues.

Japan

The U.S.

EuropePerformance of Japan Business（Unit：￥ bn. ）COI margin

RevenueCore Operating Income

10.9%
8.6%

8.1%

8.3%

7.5%
420.4

356.1

338.9
28.7

2020
* Fiscal year ended in March

9

372.0

29.1
2021

30.9
2022

31.6
2023

305.5
33.2
（FYE*）
2024（3Q:9 months）

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

In January 2023, a global cross-regional meeting on pricing
actions was held to share the following items.
・Cost situation in each region
・Business practices
・Price management approach・Policy on price-setting in each region

1. Strategic overview

Stable Isotope (SI) Business in Japan: Aiming for growth in resilient markets
In the resilient healthcare market, we expect growing demand for Water-18O; an SI of Oxygen, which was initially produced in
2004 using the world's first cryogenic distillation technology. We are the global leader in this niche market*1.
The product is mainly used as a product material for PET diagnostics*2 and new application opportunities are expected.
World's Largest Manufacturer of Oxygen Isotopes: TNSC
Ship globally to more than 40 countries and regionswith an annual production capacity of more than 600kg

Unit 1（Goi, Chiba Pref.）Unit 2（Sodegaura, Chiba Pref.）Unit 3（Shunan, Yamaguchi Pref.）・History of Stable Isotope (SI) Business1986

SI business founded（Former NIPPON SANSO Ltd.）

2004

Began production of Water-18O using proprietary cryogenic distillation technology

2019

Succeeded in producing Water-17O (application: 17O-MRI diagnosis) (Japan’s first)

Filling operation*1 According to our research (based on production and shipment volume). The global market size is estimated at approx. ￥6 bn.
*2 PET diagnostics: Positron Emission Tomography diagnostics

10

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results（World's first）

Product container

1. Strategic overview

Contributing to people’s health: Through Reliable supply of Water-18O, a raw material for PET diagnostic reagents
18F-FDG* PET diagnosis (examination) is a reagent labeled with a positron-emitting radioisotope administered to the human

body, and the distribution of radioactivity and its time course is photographed from outside the body with a dedicated camera.
Until now, this test has been performed mainly for malignant tumors (Cancer), but its use is expanding to the diagnosis of
Alzheimer's disease (amyloid PET diagnostic) as well as Cardiac disease.
1%
13%
22%

PET
diagnostic

A type of diagnostic imaging.
A radioactive diagnostic reagent is administeredinto the body, and then analyzed and diagnosed
by imaging.
・Malignant tumors (Cancer)
Subject to diagnosis ・Alzheimer's disease
・Cardiac diseases

1
Production Method of
Diagnostic reagents
18F-FDG*

18F (radioactive isotope) is produced by

nuclear reaction of Water-18O (raw material)
produced by adding H2 to the 18O.

Japan

Sales
performance

Global Market share

40% or more

（ Our estimation ）North America

16%

FYE2024 Q3（Actual）

South America

EuropeAsia

2%Africa1

share №46%

Overall Stable Isotope Business Sales Trends（Unit：￥ bn.）

CAGR

3.2

+12.6%

2 Then, the synthesized and labeled reagentsare administered to the body1987
* Diagnostic reagents 18F-FDG: Fluorodeoxyglucose, a drug that closely resembles glucose and is used as an indicator of glucose metabolism

11

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

1996

2006

2016

2024 （FYE）（Forecast）

1. Strategic overview

Key CAPEX for our sustainable growth

WIP

Significant investment opportunities; diversified capital portfolio; aligned with our NS Vision 2026.

左記ドーナツチャート

7%“Others" include projects which are notassignable because the facilities relate to a wide
range of customers and no one specific market（e.g.）･ New or expanded production basefor Bulk business･ Shipping container for liquefied helium（色使いの関係で、Q

By Industry

Industrial

20%
36%

FYE2024（as of the end of Q3）

2%

Approx. 60% is related toEnvironmental &Hydrogen society contribution“Environmental & Hydrogen society contribution
Total
related” includes projects that contribute to our group
換算レート（ご参考）and the customers' efforts to become carbon
neutrality.
（e.g.） ・Modernizing our plants to100state-of-the-art equipment
190
・Hydrogen production related
ByJV）
Industry（HyCO Plant, and Green hydrogen

35%

Steel & Metals

Electronics

Healthcare

Industrial

Chemicals & Energy

Note that the above is an aggregation of investments that 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.

12

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

Others2. Q3 FYE2024
Business performance-1. Q3 performance（Oct. - Dec.）

13

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

2. Q3 FYE2024 Business performance -1. Q3 performance（Oct. - Dec.）

Consolidated results（Unit: ￥ bn.）

FYE2024

Q3

Q3(Oct.-Dec.)(Oct.-Dec.)

YoY
Difference％ Change％ Changeexc. FX

Revenue

299.3

316.0

+16.7

+5.6%

+1.3%

Core operating income

31.3

43.0

+11.7

+37.3%+30.3%

10.5%

13.6%

Non-recurring profit and loss

-0.8

-0.4

+0.4

Operating income（IFRS）

30.5

42.6

+12.1

10.2%
19.4%

13.5%
22.5%

Finance costs

-5.4

-5.9

-0.5

Income before income taxes
Income tax expenses

25.1

36.6

+11.5

7.1

11.0

+3.9

Net income

17.9

25.6

+7.7

+42.4%(Attribution of net income)Net income attributable to owners of the parent

17.2

24.8

+7.6

+44.0%

5.8%

7.9%

0.7

0.7

Core OI margin

OI margin
EBITDA margin

NI margin
Net income attributable to non-controlling interests

14

FYE2023

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results+0.0+39.6%+46.1%

2. Q3 FYE2024 Business performance -1. Q3 performance（Oct. - Dec.）

Japan
YoY
（Unit: ￥ bn.）

Revenue

FYE2023

FYE2024

Q3

Q3(Oct.- Dec.)(Oct.- Dec.)% Change
Difference

exc. FX

106.1

103.3

-2.8

-2.6%

-2.7%

7.4

11.9

+4.5

+60.9%+60.4%

Segment OI margin

7.0%

11.5%

EBITDA margin

11.5%

15.9%

Segment income

YoY Factors for increase/decrease in this quarterly period and other comment
・ Lower shipment volumes of core products such as air separation gases, and LP gas.
・ Sales price revisions against the backdrop of rising costs.
・ Shipment volumes of electronic material gases were soft.
・ Both Industrial Gases-related and Electronics-related equipment and installation were firm.
・ Decrease in revenue due to conversion from on-site production facility to a joint operation entity (June 30, 2023).

15% Change

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

2. Q3 FYE2024 Business performance -1. Q3 performance（Oct. - Dec.）

United States
YoY（Unit: ￥ bn.）

FYE2023

FYE2024

Q3

Q3(Oct.- Dec.)(Oct.- Dec.)% Change
Difference% Change

Revenue

77.6

87.6

+10.0

+12.9%+8.1%

Segment income

10.0

12.4

+2.4

+24.0%+18.3%

Segment OI margin

12.9%

14.2%

EBITDA margin

26.2%

26.7%

YoY Factors for increase/decrease in this quarterly period and other comment
・ Shipment volumes of core products such as air separation gases were flat.
・ Sales price revisions and productivity initiatives.
・ In equipment and installation, the revenue declined in industrial gas-related (Hard goods: Welding and Cutting-related items).

16exc. FX

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

2. Q3 FYE2024 Business performance -1. Q3 performance（Oct. - Dec.）

EuropeYoY（Unit: ￥ bn.）

FYE2023

FYE2024

Q3

Q3(Oct.- Dec.)(Oct.- Dec.)% Change
Difference

exc. FX

Revenue

66.9

75.7

+8.8

+13.1%+2.7%

Segment income

9.4

13.2

+3.8

+39.9%+26.1%

Segment OI margin

14.2%

17.5%

EBITDA margin

27.4%

30.3%

YoY Factors for increase/decrease in this quarterly period and other comment
・ Increase shipment volumes of core products such as air separation gases.
・ Sales price revisions along with productivity and cost reduction efforts.
・ Strong sales of gas-related equipment and medical-related equipment.

17% Change

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

2. Q3 FYE2024 Business performance -1. Q3 performance（Oct. - Dec.）

Asia & Oceania
YoY（Unit: ￥ bn.）

FYE2023

FYE2024

Q3

Q3(Oct.- Dec.)(Oct.- Dec.)% Change
Difference

exc. FX

Revenue

41.0

41.3

+0.3

+0.8%

-4.0%

Segment income

3.3

4.0

+0.7

+21.2%+16.0%

Segment OI margin

8.2%

9.9%

EBITDA margin

14.1%

16.3%

YoY Factors for increase/decrease in this quarterly period and other comment
・ Slightly lower shipment volumes of core products such as air separation gases.
・ Sales price revisions against the backdrop of rising costs and other factors.
・ In LP gas, of which a large portion of sales are in the Australia region, sales volumes declined.
・ Shipment volumes of electronic material gas were soft.

18% Change

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

2. Q3 FYE2024 Business performance -1. Q3 performance（Oct. - Dec.）

Thermos
YoY（Unit: ￥ bn.）

FYE2023

FYE2024

Q3

Q3(Oct.- Dec.)(Oct.- Dec.)% Change
Difference% Changeexc. FX

Revenue

7.4

7.8

+0.4

+4.8%

+3.7%

Segment income

1.1

1.4

+0.3

+26.0%+23.1%

Segment OI margin

15.6%

18.8%

EBITDA margin

20.7%

23.8%

YoY Factors for increase/decrease in this quarterly period and other comment
・ In Japan, revenue from Portable vacuum-insulated mugs was favorable.
・ Overseas, revenue from Korean sales companies and Asian production plants was firm, but sales conditions at equity-method affiliates were soft.
・ Production costs increased mainly due to the weak JPY.

19

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

2. Q3 FYE2024
Business performance-2. Nine months Cumulative performance20

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

2. Q3 FYE2024 Business performance -2. Nine months Cumulative performance

Consolidated results（Unit: ￥ bn.）

FYE2024

9M

9M(Apr.- Dec.)(Apr.- Dec.)

YoY
Difference％ Change％ Changeexc. FX

Revenue

873.0

928.6

+55.6

+6.4%

+1.9%

Core operating income

87.5

124.7

+37.2

+42.5%+35.1%

10.0%

13.4%

Non-recurring profit and loss

-3.1

-0.5

+2.6

Operating income（IFRS）

84.3

124.2

+39.9

9.7%
19.1%

13.4%
22.4%

Finance costs

-9.6

-15.9

-6.3

Income before income taxes
Income tax expenses

74.7

108.2

+33.5

20.3

32.1

+11.8

Net income

54.4

76.0

+21.6

+39.8%(Attribution of net income)Net income attributable to owners of the parent

52.4

73.3

+20.9

+40.1%

6.0%

7.9%

2.0

2.6

Core OI margin

OI margin
EBITDA margin

NI margin
Net income attributable to non-controlling interests

21

FYE2023

Forex （Unit: JPY）

USD

136.85143.78(average rate during the period)

EUR

140.83156.24

AUD

93.16

94.47

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results+0.6+47.2%+44.8%

2. Q3 FYE2024 Business performance -2. Nine months Cumulative performanceJapan

By Industry
Cumulative period basis

9%（Unit: ￥ bn.）

FYE2023

FYE2024

9M

9M(Apr.- Dec.)(Apr.- Dec.)

Steel & Metals% Change
Difference% Change

4%

24%

YoY

Automobiles & Other
transportationexc. FXElectronics
Food & Beverage

Healthcare

28%

Chemicals & Energy

Revenue

300.5

305.5

+5.0

+1.7%

+1.6%

Others24%
2%

Segment income
Segment OI margin

20.1

33.2

6.7%

10.9%

+13.1

+65.2%

9%+64.8%

By Product
Cumulative period basis

EBITDA margin

11.5%

15.4%
36%

Gases
Equipment andinstallation, other64%

22

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

2. Q3 FYE2024 Business performance -2. Nine months Cumulative performance

United States

By Industry
Cumulative period basis

8%

YoY
FYE2023（Unit: ￥ bn.）

% Change

FYE2024

9M

9M(Apr.- Dec.)(Apr.- Dec.)

10%

Difference% Changeexc. FX

Steel & Metals
Automobiles & Other
transportation

41%

6%

Electronics
Food & Beverage

Healthcare
Chemicals & Energy

Revenue

223.6

257.1

+33.5

+15.0%+9.5%

14%

Others8%

Segment income
Segment OI margin

26.0

35.8

11.7%

13.9%

+9.8

+37.5%

13%+30.6%

By Product
Cumulative period basis

EBITDA margin

25.4%

26.5%
26%

Gases
Equipment andinstallation, other

74%

23

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

2. Q3 FYE2024 Business performance -2. Nine months Cumulative performance

EuropeBy Industry
Cumulative period basis

17%

YoY
（Unit: ￥ bn.）

FYE2023

FYE2024

9M

9M(Apr.- Dec.)(Apr.- Dec.)

30%

Steel & Metals% Change
Difference% Change

Automobiles & Other
transportationexc. FXElectronics
Food & Beverage

Healthcare
Chemicals & Energy

Revenue

203.3

223.1

+19.8

+9.8%

-1.1%

Others20%
11%

Segment income
Segment OI margin

25.3

39.6

12.5%

17.8%

+14.3

+56.1%+40.4%
By Product
Cumulative period basis

EBITDA margin

25.2%

30.5%

10%

Gases
Equipment andinstallation, other

90%

24

1%
3%

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results18%

2. Q3 FYE2024 Business performance -2. Nine months Cumulative performance

Asia & Oceania

By Industry
Cumulative period basis

3%
22%

YoY
（Unit: ￥ bn.）

FYE2023

FYE2024

9M

9M(Apr.- Dec.)(Apr.- Dec.)

Steel & Metals% Change
Difference% Change5%

Automobiles & Other
transportationexc. FXElectronics
Food & Beverage

Healthcare
Chemicals & Energy

Revenue

122.8

119.5

-3.3

-2.7%

-6.1%

Segment income

12.3

12.6

+0.3

+2.8%

-0.0%

10.0%

10.6%

Segment OI margin

Others26%

3% 2%

By Product
Cumulative period basis

EBITDA margin

15.7%

16.9%

15%

Gases
Equipment andinstallation, other

85%

25

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results39%

2. Q3 FYE2024 Business performance -2. Nine months Cumulative performance

Thermos

By Region
Cumulative period basis

16%

YoY
（Unit: ￥ bn.）

Revenue

FYE2023

FYE2024

9M

9M(Apr.- Dec.)(Apr.- Dec.)

22.6% Change
Difference

23.1% Changeexc. FX

Japan
Asia

+0.5

+2.3%

+1.5%
84%

Segment income

26

4.4

4.3

Segment OI margin

19.8%

18.7%

EBITDA margin

24.6%

23.7%

-0.1

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

-3.1%

-6.0%

3. FYE2024 Full-term forecast

27

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

3. FYE2024 Full-term forecast

Consolidated forecast
YoY

FYE2023

FYE2024

Full-term

Full-term forecast

Difference％ Changeexc. FX(Announced on October 31, 2023)（Unit: ￥ bn.）

1,186.6

1,230.0

+43.4

+3.7%

-0.1%

123.1

155.0

+31.9

+25.9%+20.4%

10.4%

12.6%

Non-recurring profit and loss

-3.5

8.0

+11.5

Operating income（IFRS）

119.5

163.0

+43.5

OI margin

10.1%

13.3%

EBITDA margin

19.3%

21.6%

Finance costs

-14.0

-24.0

-10.0

Income before income taxes
Income tax expenses

105.5

139.0

+33.5

29.5

38.5

+9.0

Net income

75.9

100.5

+24.6

+32.3%(Attribution of net income)Net income attributable to owners of the parent

73.0

97.0

+24.0

+32.7%

6.2%

7.9%

2.8

3.5

RevenueCore operating income
Core OI margin

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

USD

136.00142.61(average rate during the period)

EUR

141.62154.81

AUD

92.67

93.44

+36.4%+31.7%+0.7

Total Forex impact for FYE2024 Full-term forecast : Positive impacts of ￥44.9 bn. on revenue and ￥5.6 bn. on core operating income.

28％ Change

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

Q&A Session

Representative Director,
President CEO
Toshihiko Hamada

Senior Executive Officer,
Group Finance &Accounting Office,and CFO

Senior Executive Officer,
Group Corporate Planning
OfficeSenior Executive Officer,
Group Sustainability
Management Office,and CSO

Tsutomu Moroishi（Chief Sustainability Officer）

Alan Draper
Takeshi Miki

30

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

General Manager,
Investor relations,Group Finance &Accounting Office

General Manager,
Accounting,Group Finance &Accounting Office

Keita Kajiyama

Takashi YoshidaAppendix

31

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

NIPPON SANSO Holdings Group Summary

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

Published on February 2, 2024

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 September 30, 2023）

Number of sharesGroup Vision
enhance human well-being and contribute to a more sustainable future.

433,092,837

Number of shareholders

13,269Listed stock exchanges

Main Core businessTokyo Stock Exchange Prime Market

Ticker4091.T

Distribution by share holders (%)
Mitsubishi Chemical Group 50.6

0%

We aim to create social value through innovative gas solutions that increase industrial productivity,

10%

20%

Industrial Gas businessJapanese Indivisuals and others

Electronics business

Thermos business

9.3

Foreign Institutions and Individuals 18.2

30%

40%

Other Japanese Corporations

50%

60%

70%

80%

90%

100%

Japanese Financial Institutions 16.8

5.1

Revenue / Employee personnel by Segment （As of Match 31, 2023）
13%

3%

7%

35%

23%

0.4%
32%

22%

19,579¥1,186.6bn.

people

15%

32

US

Revenue¥1,230.0 bn.

Operating income¥163.0 bn.

23%

26%
Japan

FYE2024 Financial Forecast（IFRS)EuropeAsia & Oceania

Thermos

Corporate

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

Net income attributable toowners of the parent

EPS¥97.0 bn.
¥224.09

Our Medium-term management plan Summary

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

Published on February 2, 2024

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
EBITDA margin\125.0-135.0 bn.
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

40%

Europe

10%

20%

30%

Base/Underlying

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＞

Rate of female management posts

33

70%

80%

90%

100%

Strategic (beyond regions)

37%

45%
0%

（Note）Forex rate (Assumption) : USD \115 EUR \125Rate of female employees

60%

Thermos

9%

Composition ratio by Initiative≥6 %Rate of receiving compliance training

50%

Asia & Oceania

2%≤0.7 times

ROCE after Tax

Lost Time Injury Rate

14%

24%

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 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 items in the Company.
FYE2023
9M

FYE2024
9M

YoY
Difference（Unit: ￥ bn.）

Core operating income

87.5

124.7

+37.2

Non-recurring profit and loss

-3.1

-0.5

+2.6

Operating income（IFRS）

84.3

124.2

+39.9

Items（Unit：￥ bn.）
FYE2023 9M result
Item

34

FYE2024 9M result
AmountItem

Arbitration of Leasing facilities dispute (United States)-3.5 Impairment loss due to exit of Asia business

Gain on sales of overseas land (Asia&Oceania)

0.5

Restructuring-related expenses for the alfi business (Thermos)-0.3

Others (Japan)

0.1

Total

-3.1 Total

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

Amount-0.5-0.5

Key performance indicators
Item

Unit

FYE2024
9M

FYE2023
Full-term

JPY

121.07169.56168.85

Overseas sales ratio

％

64.0

65.6

63.0

ROE

％

ー

ー

10.8

ROCE

％

ー

ー

7.6

ROCE after Tax

％

ー

ー

5.4

JPY

ー

ー

38

％

ー

ー

22.5

CAPEX(fund basis) & Investments and loans

\bn.

64.9

82.6

94.7

Depreciation and amortization

\bn.

78.8

83.0

105.7

Free cash flow

\bn.

44.2

47.4

89.8

Adjusted net D/E ratio

Times

0.89

0.73

0.81

Interest-bearing liabilities

\bn.

954.2

1,036.2

941.7

Net interest-bearing liabilities

\bn.

844.7

831.8

809.5

Basic earnings per share

Annual dividends per share
Dividend payout ratio

35

FYE2023
9M

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 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.

36

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

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

37

FYE2023

FYE2024

9M

9M

YoY
Difference% Change

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

74.7
78.8
-36.0
-9.3

108.2
83.0
-33.4
-26.7

+33.5
+4.2
+2.6
-17.4

+44.8%Cash flows from operating activities

108.2

131.1

+22.9

+21.2%

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

-62.1
-2.7
0.9

-80.1
-2.5
-1.0

-18.0
+0.2
-1.9

Cash flows from investing activities

-63.9

-83.6

-19.7

+30.8%

Free cash flow

44.2

47.4

+3.2

+7.2%

Cash flows from financing activities

-28.8

19.6

+48.4

ー

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

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

FYE2023

FYE2024

YoY

Q4

Q3

Difference

FYE2023

FYE2024

YoY

Q4

Q3

Difference

Cash and cash equivalents

132.2

204.3

+72.1

Trade payables

128.1

117.9

-10.2

Trade receivables

243.5

260.0

+16.5

Interest-bearing liabilities

941.7

1,036.2+94.5

Inventories

97.6

107.5

+9.9

Others

330.9

368.5

+37.6

Others

53.7

83.4

+29.7

1,400.9

1,522.6+121.7

527.0

655.3

+128.3

626.5

671.8

+45.3

Property, plant and equipment

776.1

822.4

+46.3

97.7

167.0

+69.3

Goodwill

513.6

552.4

+38.8

Equity attributable to

Intangible assets

242.3

247.1

+4.8

owners of parent

724.3

838.9

+114.6

99.7

114.8

+15.1

Non-controlling interests

33.6

30.6

-3.0

Total non-current assets

1,631.8

1,736.8+105.0Total equity

757.9

869.5

+111.6

Total assets

2,158.9

2,392.2+233.3

2,158.9

2,392.2+233.3

Total current assets

OthersTotal liabilities
Share capital and capital surplus, etc
Other components of equity

Total liabilities and equity

Note that foreign exchange rates resulted in an increase in both total assets and total liabilities and equity of approximately ¥119.7 billion. This mainly reflected foreign exchange rate changes,
such as the JPY depreciation of ¥8.30 against the USD and the JPY depreciation of ¥11.40 against the EUR as of December 31, 2023, compared with the rates as of March 31, 2023.

38

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

Results overview by Segment
FYE2024

FYE2023（Unit: ￥ bn.）

Asia & Oceania

Thermos

10.9%

Segment OI

223.6
26.0

257.1
35.8

Segment OI margin

11.7%

13.9%

Revenue
Segment OI

203.3
25.3

223.1
39.6

Segment OI margin

12.5%

17.8%

Revenue
Segment OI

122.8
12.3

119.5
12.6

Segment OI margin

10.0%

10.6%

Revenue
Segment OI

22.6
4.4

23.1
4.3

Segment OI margin

19.8%

18.7%

0.0
-0.8

0.0
-1.0

Core OI

873.0
87.5

928.6
124.7

Core OI margin

10.0%

13.4%

Revenue

Adjustment

Segment OI

Revenue

Consolidated total

39(Apr.- Dec.)

6.7%

Segment OI

RevenueEurope(Apr.- Dec.)

Composition
ratio

305.5
33.2

Segment OI margin

United States

9M

300.5
20.1

Revenue

Japan

9M

YoY

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

32.9%
26.7%

27.7%
28.8%

24.0%
31.8%

12.9%
10.2%

2.5%
3.5%

0.0%
-1.0%

100.0%
100.0%

DifferenceWork in Progress% Change

Forex impact% Changeexc. FX

+5.0
+13.1

+1.7%
+65.2%

+0.1
+0.0

+1.6%
+64.8%+33.5+9.8+15.0%+37.5%

+11.3
+1.3

+9.5%
+30.6%

+19.8
+14.3

+9.8%
+56.1%

+22.2
+2.8

-1.1%
+40.4%

-3.3
+0.3

-2.7%
+2.8%

+4.3
+0.3

-6.1%
-0.0%

+0.5
-0.1

+2.3%
-3.1%

+0.1
+0.1

+1.5%
-6.0%

-0.0
-0.2

―
―

+55.6
+37.2

+6.4%
+42.5%

―
―
+38.2
+4.7

+1.9%
+35.1%

Revenue composition
As of 1/27 9AM
WIP(Charts by industry)

By Segment

By Industry

2%

10%

13%

5%
30%

33%

24%

Q3
FYE2024Q3
FYE2024¥928.6bn.

¥905.4bn.

17%(exc. Thermos business)

9%
20%
9%

28%

Japan

U.S.

EuropeAsia & Oceania

Thermos

Steel & Metals

Healthcare

Automobiles & Other transportation

Chemicals & Energy

Electronics

OthersFood & Beverage

40

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

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

41

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.

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 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%

42

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

2020.32021.3February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

73.0

2022.3

87.4

90.3

87.2

2020.32021.3

102.7

65.8

2023.32019.32022.32023.3

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 Cylinder43（ Small-scale supply）

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 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.

44

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results

For further information, please contact:
Public Relations for media

Investor Relations for investors

Public Relations

Investor Relations

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
FYE2024 Full-term Earnings Call
FYE2024 Full-term Earnings Presentation

May 13, 2024
May 22, 2024

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

45

February 2, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2024 Q3 results© 2024 NIPPON SANSO Holdings Corporation All rights reserved