Nippon Sanso : May 23, 2025 FYE2025 Full-term Earnings Presentation Materials

About this update from Nippon Sanso Holdings Corporation

FYE2025 Full-term Earnings Presentation May 23, 2025 Tokyo, Japan 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 ＞ FYE2024 Average Forex rates FYE2025 Full-term Assumption （Apr.-Mar.） (Announced on May 12, 2025) 141.00 162.00 114.37 90.00 21.20 FYE2026 （Reference） Currency sensitivity as rough indication Unit：JPY Q1 1st Half 9M Full-term Q1 1st Half 9M Full-term Impact amount per 1 JPY Unit：¥ bn. (Full-term basis) Currency （Apr.-Jun.） （Apr.-Sep.） （Apr.-Dec.） （Apr.-Mar.） （Apr.-Jun.） （Apr.-Sep.） （Apr.-Dec.） （Apr.-Mar.） Currency Revenue Core Operating Income USD 139.63 142.61 143.78 145.31 158.24 152.45 153.03 152.57 USD ±2.3 ±0.40 EUR 151.89 154.81 156.24 157.72 170.08 165.83 165.09 163.66 EUR ±2.0 ±0.35 SGD 103.66 105.79 106.90 108.03 116.65 114.37 114.58 113.98 AUD 91.94 93.44 94.47 95.32 104.66 101.80 100.91 99.27 CNY 19.67 19.87 20.01 20.20 21.76 21.20 21.25 21.12 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. FYE2025 Overview （ The third fiscal year in Our MTP; NS Vision 2026 ） Agenda FYE2026 Business Plan （ Final fiscal year in Our MTP; NS Vision 2026 ） Financial Profile Q&A Session Opening remarks President CEO Toshihiko Hamada Our philosophy and vision Group Philosophy Group Vision Proactive. Innovative. Collaborative. Making life better through gas technology. 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. Implement the " Five focused fields " Our MTP ; M edium- T erm management P lan Slogan : Enabling the Future NS Vision 2026 We formulated our first MTP, NS Vision 2026, after the establishment of NSHD in Oct. 2020 with the vision that, "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." Under the four global regions + Thermos business structure, we established five focused fields; Sustainability Management, Exploring New Business toward Carbon Neutrality, Total Electronics, Operational Excellence, and DX Initiatives. We will strengthen the group's comprehensive capabilities and achieve further growth to provide a bright and comfortable future for people, society, and the Earth. Our MTP Toward the final fiscal year in NS Vision 2026 Revenue JPY 975.0-1,000.0 Billio n * Environment : KPIs (Key Performance Indicators) in FYE2025 actual that exceeded the planned figure for the final fiscal year Reduction rate of GHG emissions (Base year: FYE2019) 18% :FYE2026 32% :FYE2031 GHG reduced emissions through environmental product offer Lower customer GHG emissions through environmental product offerings and applications ＞ NSHD group GHG emissions FYE2026 Non-Financial KPIs Core Operating Income JPY 125.0-135.0 Billio n * EBITDA Margin Group: ≥24% Japan, the U.S., EU, A&O, Thermos: ≥17-33% Financial KPIs FYE2026 Safety Management HR Lost Time Injury Rate ≤ 1.6 FYE2026 Rate of female employees ≥ 22% :FYE2026 25% :FYE2031 Rate of female management posts ≥ 18% :FYE2026 22% : FYE2031 Adjusted net D/E Ratio ≤0.7 Compliance ROCE after Tax ≥6% Rate of receiving compliance training 100% FYE2026 * Due to the uncertainty in the global economy, revenue and core operating income are shown in range. The assumed exchange rates at the time the plan was formulated were USD ¥115 and EUR ¥125. Our MTP Non-Financial KPI Progress :Steady progress, highly rated in environmental field Making steady progress toward achieving our final year target, in line with our Sustainability Management strategy. In the environmental field, results were favorable in both CNP I & II and highly rated for its efforts and information disclosure. ＜ Non-Financial KPI ＞ NS Vision 2026 Segment Non-Financial Programs Initiative Non-Financial KPI Actual Final-Year Targets FYE2026 FYE2023 Released in Sep 2024 FYE 2024 Environment CNP Ⅰ Carbon Neutral Program Ⅰ Reduce the Group's GHG emissions Reduction rate of GHG emissions*1 12.3% 15.3% 18% CNP Ⅱ Carbon Neutral Program Ⅱ Reduce customer GHG emissions through environmental product offerings and applications Lower customer GHG emissions 7,308 ＞ 5,868 K t-CO 2 e 7,454 ＞ 5,667 K t-CO 2 e Lower customer GHG emissions through environmental product offerings and applications ＞ NSHD Group GHG emissions Social SFP Safety First Program Reduction in lost time injury rate Lost time injury rate *2 1.56 2.09 ≤ 1.6 TDP Talent Diversity Program Utilization of diverse talent Rate of female employees 19.9% 20.2% ≥ 22% Rate of female management posts 14.5% 15.4% ≥ 18% Governance CPP Compliance Penetration Program Compliance education and enforcement Rate of receiving compliance training 99.7% 99.4% *3 100% ≦ 1.6 ≧ 22% ≧ 18% Highly rated for environmental disclosures Selected as a CDP Climate Change "A list" company, the highest rating for the first time (2024) * received an "A-" score on Water Security Selected as "Excellent TCFD Disclosure" and "Highly Improved Integrated Reports" by GPIF's Domestic Equity Investment Managers Selected consecutively for inclusion in following ESG indices MSCI ESG Score: BBB (as of Mar. 2025) FTSE ESG Score: 3.7 (as of Jun. 2024) ESG indices adopted by GPIF Composite index FTSE Blossom Japan Index FTSE4Good Index Series ESG indices adopted by GPIF Theme index (Social) MSCI Japan Empowering Women (WIN) Select Index In addition to the above, we are also involved in the Zero Waste Program ( ZWP ) for waste reduction, the Sustainable Water Program ( SWP ) for effective use of water resources, and the Quality Reliability Program ( QRP ) to improve quality and reliability. Together, we call them our " Eight Non-Financial Programs ." *1 Reduction targets for a fiscal year are set regarding the base year of FYE2019, with figures adjusted to reflect the acquisition of the European industrial gases business. *2 This is an indicator that represents the frequency of occupational accidents. It is calculated as the number of employees injured in accidents that resulted in lost work time, divided by the total number of work hours, multiplied by one million hours. *3 100% completion rate as of the end of June 2024 Our MTP Approach for Capital Allocation in NS Vision 2026 IN OUT Strategic Investment for CN: Carbon Neutral related initiatives DX: Digital Transformation initiatives Investment Total ¥433.0 bn. Includes ¥38.0 bn. of strategic initiatives Dividend & Repayment of debt Operating CF ¥730.0 bn. NS Vision 2026 (For 4 yr.) Strategic Thermos G% 2% Japan 24% Strategic initiatives 12% Growth initiatives AsO * 14% Investment ratio by Segment Investment ratio by Purpose 37% Europe 24% 27% US 45% Base/Underlying 6% MsA * The assumed exchange rates at the time the plan was formulated were USD ¥115 and EUR ¥125. （ Reference ） Investment / revenue % by Segment Japan: 7.4 %, US: 10.5 %, Europe: 12.9 %, *Asia & Oceania: 11.1 %, Thermos: 6.9 % FYE2025 Overview FYE2026 Business Plan Financial Profile Q&A Session 1. FYE2025 Overview （ The third fiscal year in Our MTP; NS Vision 2026 ） President CEO Toshihiko Hamada 1. FYE2025 Overview Summary of Consolidated financial results (FYE2025 Full-term) FYE2024 Full-term YoY ％ Change exc. FX FYE2025 Full-term 12.7% 23.3% Difference ％ Change （ Unit: ￥ bn. ） Revenue 1,255.0 1,308.0 +53.0 +4.2% +1.4% Core operating income 165.9 189.1 +23.2 +13.9% +10.3% Core OI margin 13.2% 14.5% Non-recurring profit and loss 6.0 -23.2 -29.2 Operating income （ IFRS ） 172.0 165.9 -6.1 -3.6% YoY % Change Revenue Growth +4.2% FX +2.8% Price +2.2% Pass-through & Surcharge +0.0% Volume / Mix -1.3% Others +0.5% Price Management status: Solid Pass-thru ＆ Surcharge: Flat Volume / Mix: Soft Others: Deconsolidation in Japan, contributions from business acquisitions in Europe and Australia, etc. Revenue Analysis OI margin 13.7% EBITDA margin 22.2% Finance costs -21.3 -20.6 +0.7 Income before income taxes 150.7 145.2 -5.5 -3.6% Income tax expenses 41.3 43.3 +2.0 Net income 109.3 101.9 -7.4 -6.8% (Attribution of net income) Net income attributable to owners of the parent 105.9 98.7 -7.2 -6.7% NI margin 8.4% 7.6% Net income attributable to non-controlling interests 3.4 3.1 -0.3 Forex （ Unit: JPY ） USD 145.31 152.57 (average rate during the period) EUR 157.72 163.66 AUD 95.32 99.27 FYE2025 Overview Summary: Progress toward Financial targets Price management & Productivity initiatives Enhanced Financial soundness While the Group's overall product shipment volumes declined, price revisions and price management to address cost inflation were implemented. Continued initiatives under the productivity improvement program and cost management across all regions. In FYE2025, Revenue growth; +1.4%, and Core OI growth; +10.3% (YoY basis excluding FX impact) , COI margin improved by 130 bps and EBITDA margin also improved by 110 bps. Executed a balanced capital allocation strategy focused on investments in sustainable growth projects, disciplined debt reduction, and consistent shareholder returns. Adjusted net D/E ratio improved by 3 bps (YoY basis) , and the annual dividend per share increased by ¥7 (planned, YoY basis). Steady progress toward financial soundness of NS Vision 2026; Adjusted net D/E ratio below 0.7. In December 2024, ¥75.0 billion of the hybrid loan was paid in full as a complete early redemption. We have focused on cash management and improved working capital. Capital efficiency & Cost of capital Return On Capital Employed (ROCE) after Tax, a measure of capital efficiency, improved from improved profitability and reduction of interest-bearing debt. ROCE after Tax (NOPAT basis) improved by 50 bps (YoY basis) . Ensuring strict investment criteria, hurdle rates, and prioritization of economically strong projects with strategic value are driving investment capital efficiency. FYE2025 Overview FYE2026 Business Plan Financial Profile Q&A Session 2. FYE2026 Business Plan （ Final fiscal year in Our MTP; NS Vision 2026 ） President CEO Toshihiko Hamada FYE2026 Business Plan Summary of Consolidated financial forecast FYE2025 Full-term FYE2026 Full-term forecast YoY Difference ％ Change （ Unit: ￥ bn. ） Revenue 1,308.0 (Announced on May 12, 2025) 1,290.0 -18.0 -1.4% Core operating income 189.1 191.0 +1.9 +1.0% Core OI margin 14.5% 14.8% Non-recurring profit and loss -23.2 0.0 +23.2 Operating income （ IFRS ） 165.9 191.0 +25.1 +15.1% OI margin 12.7% 14.8% EBITDA margin 23.3% 24.1% Finance costs -20.6 -22.5 -1.9 Income before income taxes 145.2 168.5 +23.3 +16.0% Income tax expenses 43.3 49.0 +5.7 Net income 101.9 119.5 +17.6 +17.2% (Attribution of net income) Net income attributable to owners of the parent 98.7 116.0 +17.3 +17.4% NI margin 7.6% 9.0% Net income attributable to non-controlling interests 3.1 3.5 +0.4 Forex （ Unit: JPY ） USD 152.57 141.00 (average rate during the period) EUR 163.66 162.00 AUD 99.27 90.00 FYE2026 Full-term forecast ％ Change (exc. FX) 1,328.8 +1.6% 197.2 +4.3% 14.8% 0.0 197.2 +18.9% 14.8% 24.1% -23.0 174.2 +20.0% 50.5 123.7 +21.4% 120.2 +21.7% 9.0% 3.5 152.57 163.66 99.27 FYE2026 Business Plan Summary: Assumptions of the business plan (Basic concept) Nimbly react to customer trends Aim for growth more than local GDP In the FYE2026, Planned revenue growth; +1.6%, and Core OI growth; +4.3% (YoY basis excluding FX impact) The Group's overall product shipment volumes may be affected by business environment uncertainty Focus on firm demand from resilient markets (food & beverage, healthcare, etc.) Continue productivity initiatives and cost management Continue steady operation Set appropriate prices for the value of the products and reliability of services Execute Post-Merger Integration (PMI) activities to maximize synergies with acquired businesses Promote supply chain management based on the company's policies on human rights, etc. Explore future growth drivers Seize business opportunities in our technological fields that contribute to the realization of a Carbon Neutral society Improve customer stickiness through collaborative efforts with customers including the implementation of new applications 2. FYE2026 Business Plan Initiatives at the Holdings Reorganization of the Group Corporate Planning Office The organization within the Group Corporate Planning Office was restructured in April 2025 with the aim of strengthening each function related to formulating management strategies , business management , and promoting group comprehensive capabilities . Business management and promotion functions that were previously in this office have been separated and transferred to newly established offices. Group Corporate Planning Office Development and execution management of business strategies and management of Thermos business Group Business Management Office New Management of operations in Japan, US, Europe, and Asia & Oceania New Promotion of global initiatives across operating companies Group Business Promotion Office (Total Electronics, Global ASU Engineering*, R&D, Helium, Operational Excellence, Marketing) *ASU (Air Separation Unit) Engineering: A project established in April 2025 as the Global ASU Engineering Promotion Project with the aim of strengthening the group's comprehensive capabilities in ASU engineering functions Establishment of Global CIO Role A Global CIO role was established in April 2025 to lead the development and execution of IT and digital strategies and roadmaps across the NSHD group. The CIO will also focus on procurement savings, leveraging software and knowledge across the group, and utilizing AI and emerging technologies to drive greater efficiency. 2. FYE2026 Business Plan Japan What we need to accomplish Business Performance Legend Revenue composition by industry （ Toward the final fiscal year in NS Vision 2026 ） Strengthen Core Businesses earning power & profitability Increase profitability by streamlining and optimizing the business foundation. Growth exploration and expansion Develop business areas through new materials for compound semiconductor manufacturing processes, Stable isotopes, Biotechnology, and Additive manufacturing. （ Last three fiscal years ） （ FYE2025 Full-term ） 16.0% 14.8% 11.5% 12.1% 10.4% 7.5% EBITDA margin 6% 4% 25% Steel & Metals Automobiles & Other transportation Electronics Food & Beverage Healthcare Chemicals & Energy Others 31% 22% 2% 10% Core OI margin Surrounding environment （ Our perspective as of the beginning of FYE2026 ） （ Unit ：￥ bn. ） 42.9 47.0 31.6 Growth Enhance new products and services Provide and expand Industrial Gas Solutions for customers Business Transformation Shifting from restructuring low-profitability businesses to enhancing core businesses earning power & profitability Segment strategy 420.4 414.3 410.0 Revenue Core OI Risks Uncertain political and economic policies from the new U.S. Administration Increasing deflationary export pressure from China Rising labor costs and extended construction periods due to labor shortages and working hour regulations Opportunities Equipment and construction projects in the electronics business Demand for electronic material gases for next-generation semiconductors Demand for gases and equipment that contribute to productivity improvement and energy conservation 2023 2024 2025 （ FYE ） 2. FYE2026 Business Plan Japan : Initiatives by focused field Exploring New Business toward Carbon Neutrality Sustainability Management DX Initiatives Operational Excellence Promoting advanced control and automation of production plants Improving tank truck transport efficiency by utilizing customer inventory data Conducting internal training to promote data utilization Promoting customer management and customer-centric value creation activities Continuing cost reduction efforts through optimization of manufacturing equipment operation Strengthening and continuing initiatives on diversity (town hall meetings, women's leadership development training, etc.) Promoting hazard prediction and accident forecasting utilizing AI Expanding sales of environmentally friendly products and services NS Vision 2026 ： Five focused fields FYE2026 Initiatives Oxygen combustion technology (including hydrogen and ammonia combustion), carbon dioxide capture, purification and effective utilization technology-based solution proposals (for steel, non-ferrous metals, cement industries, etc. Total Electronics Promoting R&D for electronic material gases and equipment for next-generation semiconductors Expanding and promoting product and service lineup 2. FYE2026 Business Plan United States What we need to accomplish Business Performance Legend Revenue composition by industry （ Toward the final fiscal year in NS Vision 2026 ） Continue to improve lost time injury rates Grow sales faster than U.S. GDP and industry competitors Increase applications sales in food and met-fab markets Develop M&A target and capital project backlog to support sustainable long-term growth Continue to manage costs down （ Last three fiscal years ） 28.8% EBITDA margin （ FYE2025 Full-term ） 25.7% 26.9% 16.6% 14.4% 12.2% 8% 10% Steel & Metals 40% Automobiles & Other transportation Electronics Food & Beverage Healthcare Chemicals & Energy Others 6% 14% 8% 14% Core OI margin 303.0 50.0 59.7 37.0 Growth Intensify cross-selling and applications sales efforts in targeted markets Expand onsite generator installations Pursue strategic M&A opportunities Segment strategy （ Unit ：￥ bn. ） 347.0 360.2 Revenue Surrounding environment （ Our perspective as of the beginning of FYE2026 ） Core OI Risks Uncertain political and economic policies of the new U.S. Administration Disruptions in customer supply chains due to tariffs Increases in wages, electricity, fuel and procurement costs due to inflation Opportunities Sustainable growth in resilient markets (food & beverage, hospitals) Capture new gas sales to load new carbon dioxide plants 2023 2024 2025 （ FYE ） （ Reference ） Average Forex rates in the fiscal year 136.00 145.31 152.57 USD Unit: JPY 2. FYE2026 Business Plan United States : Initiatives by focused field Exploring New Business toward Carbon Neutrality Sustainability Management DX Initiatives Operational Excellence Enhancing safe material handling and reducing costs through operations automation Improving operational efficiency through automated digital cylinder tracking Promoting cost reduction and productivity improvement program "The Right Way" Implementing disciplined price management to recover costs and improve profitability Improving safety awareness and case management to reduce lost-time injuries Recruiting activities focused on diverse and under-represented talent in our industry Ongoing efficiency initiatives to reduce GHG emissions in our own operations NS Vision 2026 ： Five focused fields FYE2026 Initiatives Construction of oxygen plant for the first U.S. large-scale Direct Air Capture installation Capturing industrial CO 2 emissions to produce dry ice for carbon capture and utilization Total Electronics Projects underway to establish and increase capacity of strategic electronic materials Expanding semiconductor Customer base to include mid-size and regional producers 2. FYE2026 Business Plan Europe What we need to accomplish Business Performance Legend Revenue composition by industry （ Toward the final fiscal year in NS Vision 2026 ） Continuous human resource development for achieving excellence Reinforce governance Optimize base business Accelerated Operational Excellence Higher growth compared to peers （ Last three fiscal years ） 25.6% 19.0% 17.6% 12.8% 30.5% 31.3% EBITDA margin （ FYE2025 Full-term ） 16% 29% Steel & Metals Automobiles & Other transportation Electronics Food & Beverage Healthcare Chemicals & Energy Others 1% 3% 17% 21% 13% Core OI margin Growth Follow up CN and H 2 opportunities Partner with our customers to help in CN Expand geographical footprint & M&A Optimize Base Business Invest in gas application technology Evaluate product and market mix Segment strategy Surrounding environment （ Our perspective as of the beginning of FYE2026 ） 328.6 Revenue Core OI （ Unit ：￥ bn. ） 272.8 302.4 53.2 62.4 34.9 Risks Uncertainty in the European economic situation Inflation driven by trade issues Loss of sales opportunities due to supply chain disruptions (helium, carbon dioxide, etc.) Opportunities Sustainable growth in resilient markets (food & beverage, healthcare) Synergy effects with acquired businesses 2023 2024 2025 （ Reference ） Average Forex rates in the fiscal year （ FYE ） 141.62 157.72 163.66 EUR Unit: JPY 2. FYE2026 Business Plan Europe : Initiatives by focused field Exploring New Business toward Carbon Neutrality Sustainability Management DX Initiatives Operational Excellence Deployment of digital platforms to enhance performance, efficiency and advanced analytics Advanced equipment management through digital twins (computer reproductions of actual equipment) Modernizing core systems Expanding project replication in productivity initiatives focused on Long Term Value (LTV) generation projects Adopting new technologies and assets to optimize distribution cost and customer service. Promoting timely and disciplined price management in response to cost fluctuations Continuing training and professional development on environment, safety, and quality, also to enhance ESG ratings Promoting the "Women's Sponsorship Program" Ongoing initiatives to reduce GHG emissions and introducing carbon-neutral products NS Vision 2026 ： Five focused fields FYE2026 Initiatives Expanding further use of oxygen combustion technology Growing onsite business, including CO 2 capture projects Advancing selectively in green fuels business (biomethane, green hydrogen) Total Electronics Expanding product-line, including new molecules, services and supply system Reinforcing supply chain Enhancing collaboration with semiconductor customers and related industries 2. FYE2026 Business Plan Asia & Oceania What we need to accomplish Business Performance Legend Revenue composition by industry （ Toward the final fiscal year in NS Vision 2026 ） Tier 1 supplier in each region with the diverse product line Efficient & disciplined operations with continuous improvement and productivity enhancement initiatives Improve revenue growth and OI margin. （ Last three fiscal years ） 16.4% （ FYE2025 Full-term ） 15.5% 15.1% EBITDA margin Growth Large scale onsite project and enhance ASU capabilities New products & sales area expansion Pursue global HyCO Opportunities Management Launch new management structure Segment strategy 2% 4% 21% Steel & Metals Automobiles & Other transportation Electronics Food & Beverage Healthcare Chemicals & Energy Others 41% 27% 3% 2% 9.7% 9.9% 8.5% Core OI margin Surrounding environment （ Our perspective as of the beginning of FYE2026 ） （ Unit ：￥ bn. ） 176.5 Revenue Core OI 159.9 160.3 15.4 15.9 15.0 Risks Rising electricity costs in Southeast Asian countries Impact on regional economy due to US-China trade friction Softening market conditions due to helium market surplus Opportunities Demand recovery in the electronics market Business opportunities for electronic material gases for advanced semiconductor markets for generative AI Continued steady demand in Southeast Asia and India Synergy effects with acquired businesses 2023 2024 2025 （ Reference ） Average Forex rates in the fiscal year （ FYE ） 92.67 95.32 99.27 AUD 99.05 108.03 113.98 SGD Unit: JPY 2. FYE2026 Business Plan Asia & Oceania : Initiatives by focused field Exploring New Business toward Carbon Neutrality Sustainability Management DX Initiatives Operational Excellence Appointing DX promotion personnel at each site and strengthening cross-regional collaboration Promoting digitalization and efficiency of operations (Promoting unified regional systems and updating quality management systems, etc.) Strengthening regional collaboration to improve productivity in bulk and packaged gas production Enhancing the maturity level of productivity improvement activities within the region Continuing training and professional development on safety and compliance Promoting women's empowerment Ongoing initiatives to reduce GHG emissions in our own operations NS Vision 2026 ： Five focused fields FYE2026 Initiatives Solution proposals utilizing group technologies such as oxygen combustion and argon welding (for industries including steel, aluminum, and glass) Total Electronics Strengthening response capabilities in the electronics business (Particularly electronic material gases where we have a manufacturer position, such as diborane, as well as equipment and construction) Strengthening the organizational structure to secure electronics projects in Southeast Asia and India 2. FYE2026 Business Plan Thermos What we need to accomplish Business Performance Legend Revenue composition by industry （ Toward the final fiscal year in NS Vision 2026 ） To grow sustainably and to be trusted as a value creating company （ Last three fiscal years ） （ FYE2025 Full-term ） 23.2% 24.8% 19.9% 24.5% 18.1% 19.3% EBITDA margin 16% Japan Asia 84% Core OI margin Growth - New products, direct operating stores, e-commerce platform business expansion Develop an interactive communication system with customers Increase Thermos brand awareness and maximize the brand equity Segment strategy Surrounding environment （ Our perspective as of the beginning of FYE2026 ） Revenue （ Unit ：￥ bn. ） 30.1 30.7 32.5 5.5 6.0 6.2 Core OI Risks Rising raw material costs due to inflation Rising labor costs at overseas production factories Declining consumer sentiment due to inflation Opportunities Increased demand for savings due to price increases of bottled beverages (increased demand for stainless steel vacuum-insulated bottles, etc.) Focus and interest in sustainable products due to rising environmental awareness Inbound demand from foreign tourists visiting Japan 2023 2024 2025 （ FYE ） FYE2026 Business Plan Thermos : Initiatives by focused field Sustainability Management Collection of used stainless steel vacuum-insulated bottles at directly operated stores Safety education for employees, proper operation of production facilities Active promotion of workforce diversification (employment of people with disabilities, development of female managers, etc.) NS Vision 2026 ： Five focused fields FYE2026 Initiatives Exploring New Business toward Carbon Neutrality Reducing energy consumption through factory production efficiency and use of electricity derived from renewable energy Operational Excellence Strengthening productivity improvement activities primarily at production factories (Reducing procurement raw material costs, reviewing production processes) DX Initiatives Promoting efficiency of shipping operations through Web EDI (Electronic Data Interchange) Optimizing inventory management through advanced product demand forecasting Improving customer experience by utilizing big data FYE2025 Overview FYE2026 Business Plan Financial Profile Q&A Session 3. Financial Profile Senior Executive Officer, CFO Alan Draper Financial Profile Financial management Our Business Characteristics and Concept Stable revenue streams driven by annuity-based earnings from facility fees, cylinder rentals, tank rentals, and take-or-pay agreements. Resilient markets spanning homecare, healthcare, pharmaceuticals, environmental, food, beverage, and electronics. Improved pricing and contract management performance. Financial soundness Leverage Reduction Capital and investments Reduction of financial expenses Investment for Growth driver Deliver growth, enhanced profitability, and global efficiency FYE2025 Actual Adjusted net D/E Ratio (End of FYE2025) 0.71 CAPEX and Investments (Cash basis: ￥ bn.) 153.3 Annual dividend [Planned] ( ￥ ) FYE2026 Forecast Budget Adjusted net D/E Ratio (End of FYE2026) 0.77 Budget CAPEX and Investments (Cash basis: ￥ bn.) 267.1 Budget annual dividend ( ￥ ) Fortifying the capital structure Refinanced ¥75bn. Hybrid debt with clean debt during FYE2025 M&A activities Economies of scale, improve customer density Pursue group synergies and globalization efforts Prioritize investments with solid economic returns and earnings potential Seek M&A opportunities that improve customer density, expand geographic presence, or enhance technical capabilities Shareholder Returns 51 Stable & business performance-linked Aiming to achieve shareholders' and investors' expectations 11 consecutive years of increasing dividend (subject to shareholder approval at AGM*) 54 *AGM: Annual General Shareholders' Meeting 3. Financial Profile NS Vision 2026 Financial KPI Progress Excluding acquisitions, continue to drive financial performance with the objective of exceeding MTP financial KPIs Revenue （ ¥ bn. ） Core Operating Income （ ¥ bn. ） EBITDA margin 1,000 975 1,186.6 1,255.0 1,308.0 1,290.0 2023.3 2024.3 2025.3 2026.3 Adjusted net D/E ratio* （ times ） 135 125 189.1 191.0 165.9 123.1 2023.3 2024.3 2025.3 2026.3 ROCE after Tax 24% 24.1% 22.2% 23.3% 19.3% 2023.3 2024.3 2025.3 2026.3 6.7% 7.2% 6.9% 5.4% Medium-term Management plan NS Vision 2026 planned figure (Targets set in Apr 2022, with planned figures for FYE2026) Exchange Assumption USD : ¥115 EUR : ¥125 Due to the uncertainty in the global economy, revenue and core operating income are shown in range. 0.81 0.74 0.77 0.71 6% 0.7 2023.3 2024.3 2025.3 2026.3 *Adjusted Net D/E Ratio: an indicator of safety (financial soundness) calculated in consideration of this part due to 50% of the amount raised by Hybrid Finance being permitted as "Equity" by rating agencies. 2023.3 2024.3 2025.3 2026.3 * Even when calculated using the above exchange rate assumptions, Revenue and Core Operating Income for FYE2025 exceed the targets. 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