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
-
FYE2025 Overview
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; Medium-Term managementPlan
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 2026Revenue
JPY 975.0-1,000.0
Billion*
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
Billion*
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 fieldMaking 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 FYE2024 | |||||
Environment | CNPⅠ Carbon Neutral Program Ⅰ | Reduce the Group's GHG emissions | Reduction rate of GHG emissions*1 | 12.3% | 15.3% | 18% |
CNPⅡ Carbon Neutral Program Ⅱ | Reduce customer GHG emissions through environmental product offerings and applications | Lower customer GHG emissions | 7,308＞5,868 K t-CO2e | 7,454＞5,667 K t-CO2e | 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 2026IN OUT
Strategic Investment for
CN: Carbon Neutral related initiatives
DX: Digital Transformation initiatives
Investment
Total
¥433.0bn.
Includes ¥38.0bn.
of strategic initiatives
Dividend & Repayment of debt
Operating CF
¥730.0bn.
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 targetsPrice 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
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 HoldingsReorganization 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
JapanWhat 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%
6%
4%
25%
Steel & Metals
Automobiles & Other transportation
Electronics
Food & Beverage Healthcare Chemicals & Energy Others
31%
22%
2%
10%
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
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 fieldExploring 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 StatesWhat 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%
（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%
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
Surrounding environment
（Our perspective as of the beginning of FYE2026）
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 fieldExploring 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 CO2emissions 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
EuropeWhat 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%
（FYE2025 Full-term）
16%
29%
Steel & Metals
Automobiles & Other transportation
Electronics
Food & Beverage Healthcare Chemicals & Energy Others
1%
3%
17%
21%
13%
Growth
Follow up CN and H2opportunities
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
（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 fieldExploring 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 CO2capture 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 & OceaniaWhat 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%
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%
Surrounding environment
（Our perspective as of the beginning of FYE2026）
（Unit：￥ bn.）
176.5
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 fieldExploring 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
ThermosWhat 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%
16%
Japan
Asia
84%
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）
（Unit：￥ bn.）
30.1
30.7
32.5
5.5
6.0
6.2
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 fieldSustainability 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
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 structureRefinanced ¥75bn. Hybrid debt with clean debt during FYE2025M&A activitiesEconomies of scale, improve customer densityPursue group synergies and globalization effortsPrioritize investments with solid economic returns and earnings potentialSeek M&A opportunities that improve customer density, expand geographic presence, or enhance technical capabilitiesShareholder
Returns
51
Stable & business performance-linked
Aiming to achieve shareholders' and investors' expectations
54
*AGM: Annual General Shareholders' Meeting
3. Financial Profile
NS Vision 2026 Financial KPI ProgressExcluding 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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