July 28, 2023 Stock exchange listing:  Tokyo (Prime) Company name:   Nippon Sanso Holdings Corporation TSE Code: 4091  URL: https://www.nipponsanso-hd.co.jp Representative:  Toshihiko Hamada, Representative Director, President CEO Keita Kajiyama, General Manager, Investor Relations Inquiries: +81-3-5788-8512 Tel.: Scheduled date to file Securities Report:  August 8, 2023 Scheduled date to commence dividend payments: Supplementary materials on quarterly financial results:  Yes Quarterly results explanatory meeting:  Yes (For institutional investors and analysts) (Amounts less than ¥1 million are omitted) 1.  Financial results for Q1 FYE2024 (April 1, 2023 – June 30, 2023)
Q1 FYE2024: ¥36,226 million [41.8%] Q1 FYE2023: ¥25,540 million [15.0%] Core operating income is calculated as operating income excluding certain gains and expenses attributable to non-recurring factors (non-recurring items).

(2) Financial position

2. Dividends

3. Forecasts for business operations for FYE2024 full term (April 1, 2023 – March 31, 2024)
(Reference) Income before income taxes FYE2024 full term: ¥102,000 million [(3.3%)]
* Notes
(1) Changes in significant subsidiaries during the period:  None (Transfer of specified subsidiaries resulting in changes in the scope of consolidation) (2) Changes in accounting policies, changes in financial forecasts 1. Changes in accounting policies required by IFRS:  None 2. Changes in accounting policies other than 1.:  None 3. Changes in accounting estimates:  None (3) Number of outstanding shares (common shares)
* Financial reports are out of the scope of audit by certified public accountants or audit corporations. * Explanation on the appropriate use of the forecasts of financial results and other comments The forward-looking statements such as the forecasts of financial result stated in this document are based on the information currently available on the Company and certain assumptions that the Company judges as rational. The Company is under no obligation to guarantee their achievement. Actual financial results may vary significantly due to various reasons. For details on the assumptions of the forecasts and related matters, please see page 6, "(3) Explanation concerning predictive information such as consolidated business forecasts" in "l. Qualitative Information on Quarterly Financial Results."
o Contents

1.  Qualitative Information on Quarterly Financial Results
(1) Explanation Concerning Business Results (General Overview) The business environment surrounding the Nippon Sanso Holdings Group (NSHD Group) in the first quarter of the fiscal year under review (from April 1, 2023 to June 30, 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, and argon) volume, which are supplied via on- site pipeline mainly to steel, chemical, and petroleum refining industries, have decreased from the previous fiscal year. On the other 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 first quarter 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. As for the impact of foreign exchange rates year-on-year, JPY depreciated against the USD from ¥131.25 to ¥139.63 (+¥8.38, or +6.4%), against the EUR from ¥138.75 to ¥151.89 (+¥13.14, or +9.5%), and JPY appreciated against the AUD from ¥92.52 to ¥91.94 ((¥0.58), or (0.6%)). As a result, overall revenue and core operating income were favorably impacted by approximately ¥11.6 billion and ¥1.6 billion respectively. Core operating income is calculated by excluding from operating income certain gains and losses attributable to non- recurring factors such as losses arising from business withdrawal or downsizing. (Overview of business performance by reportable segment) A breakdown of business performance by reportable segment is as follows. Segment income represents core operating income.
(1) Japan
In the industrial gas-related business, revenue increased year-on-year mainly due to the 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 gas-related and electronics-related businesses posted higher revenues, mainly due to the recording of medium- to large-sized projects on a percentage-of-completion basis. As a result, in the Japan segment, revenue increased by 13.1% year-on-year to ¥107,629 million and segment income increased by 87.1% to ¥11,245 million.
(2) United States
In the industrial gas-related business, revenue increased year-on-year mainly due to 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. 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 in sales. As a result, in the United States segment, revenue increased by 19.1% year-on-year to ¥82,051 million and segment income increased by 20.0% to ¥11,191 million. Revenue and segment income were favorably impacted by the weak JPY.
(3) Europe
In the industrial gas-related business, revenue increased year-on-year mainly due to 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 and carbon 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. As a result, in the Europe segment, revenue increased by 12.6% year-on-year to ¥73,146 million, and segment income increased by 49.1% to ¥13,150 million. Revenue and segment income were favorably impacted by the weak JPY.
(4) Asia & Oceania
In the industrial gas-related business, revenue increased year-on-year mainly due to 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. 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 electronics-related 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. As a result, in the Asia & Oceania segment, revenue decreased by 2.1% year-on-year to ¥38,469 million and segment income decreased by 10.6% to ¥4,128 million. Revenue was favorably impacted by the weak JPY.
(5) 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 inflation and production costs increase due to the weak JPY. As a result, the Thermos segment revenue decreased by 1.2% year-on-year to ¥7,584 million, the segment income decreased by 27.2% to ¥1,427 million.
(2) Explanation concerning financial position
As of the end of the Q1 consolidated accounting period, total assets amounted to ¥2,288,601 million, an increase of ¥129,650 million from March 31, 2023. The impact of foreign exchange rates resulted in an increase in total assets of approximately ¥134.9 billion. As of the end of the Q1 consolidated accounting period, the yen was down ¥11.46 against the USD, and down ¥11.88 against the euro from the rates reported on March 31, 2023. [Assets] Total current assets amounted to ¥548,855 million, an increase of ¥21,781 million from March 31, 2023. The main changes were an increase in assets held for sale and a decrease in cash and cash equivalents. Total non-current assets were ¥1,739,745 million, an increase of ¥107,869 million from March 31, 2023, mainly reflecting increases in plant, property and equipment and goodwill. [Liabilities] Total current liabilities were ¥458,014 million, an increase of ¥32,857 million from March 31, 2023. The main changes were an increase in bonds and borrowings and a decrease in trade payables. Total non-current liabilities were ¥983,056 million, an increase of ¥7,259 million from March 31, 2023. The main factors were an increase in deferred tax liabilities and a decrease in bonds and borrowings. [Equity] Total equity amounted to ¥847,530 million, an increase of ¥89,533 million from March 31, 2023. The main factors were increases due to the recording of exchange differences on translation of foreign operations and net income attributable to owners of the parent. The ratio of equity attributable to owners of the parent stood at 35.5%, up 2.0 percentage points from March 31, 2023.
(Cash flow analysis)
[Cash flow from operating activities] Net cash provided by operating activities increased 5.7% year on year to ¥33,610 million. The main components were income before income taxes, depreciation and amortization expenses, and corporate income tax payment or refund. [Cash flow from investing activities] Net cash used in investing activities increased 25.5% year on year to ¥24,975 million. The main use of cash was for the purchase of property, plant and equipment. [Cash flow from financing activities] Net cash used in financing activities increased 47.7% year on year to ¥24,922 million. The main changes were repayment of long-term borrowings, net increase in short-term borrowings, and proceeds from long-term borrowings. As a result of the Company's operating, investing and financing activities, the balance of cash and cash equivalents as of the end of Q1, after accounting for the effects of exchange differences, came to ¥122,423 million. (3) Explanation concerning predictive information such as consolidated business forecasts No revisions have been made to the consolidated business forecasts released on May 11, 2023.
(2) Quarterly Condensed Consolidated Statement of Profit or Loss and Quarterly Condensed Consolidated Statement of Comprehensive Income Condensed Consolidated Statement of Profit or Loss (Consolidated cumulative first quarter)
(Consolidated cumulative first quarter)

(3) Quarterly Condensed Consolidated Statement of Changes in Equity

(5) Notes to the Quarterly Condensed Consolidated Financial Statements (Notes regarding going concern assumption) Not applicable. (Segment information) (1) Outline of reportable segments The NSHD Group's reportable segments are those of the components of the NSHD Group on which separate financial information is available, and which are evaluated regularly by the Board of Directors to determine the allocation of management resources and assess business performance. No grouping of operating segments has been carried out for reporting purposes. The NSHD Group conducts gas businesses in Japan and overseas, mainly for customers in the steel, chemical, electronics, and has production and sales bases for its main products in Japan, the United States, Europe, and Asia & Oceania. In addition, the NSHD Group engages in the manufacture and sale of housewares such as stainless-steel vacuum bottles. Accordingly, the Company has established the following five reportable segments: Japan, the United States, Europe, Asia & Oceania, and Thermos.
The accounting methods adopted for the reported operating segments are the same as those adopted to prepare the consolidated financial statements. Revenue from inter-segment transactions and transfers is based primarily on prevailing market prices. (2) Figures of revenue and income (loss) by reportable segment
eliminations and companywide expenses of (¥324) million that were not allocated to any particular reportable segment. These companywide expenses consist mainly of Group administration expenses at the Company that are not attributable to reportable segments. 2. Segment income represents core operating income, which is calculated by excluding from operating income certain gains or losses attributable to non-recurring factors such as losses arising from business withdrawal or downsizing.
and companywide expenses of (¥364) million that were not allocated to any particular reportable segment. These companywide expenses consist mainly of Group administration expenses at the Company that are not attributable to reportable segments. 2. Segment income represents core operating income, which is calculated by excluding from operating income certain gains or losses attributable to non-recurring factors such as losses arising from business withdrawal or downsizing. Reconciliation of segment income with income before income taxes is shown below.