Nippon Sanso : Q2 FYE2025 Consolidated Financial Results Earnings Announcement

About this update from Nippon Sanso Holdings Corporation

Q2 FYE2025 Consolidated Financial Results Earnings Announcement ( Fiscal year ended March, 2025 ) October 31, 2024 Tokyo, Japan Notes 3 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 （ Reference ） FYE2024 FYE2025 FYE2025 Currency sensitivity as rough indication Impact of devaluation by 1 JPY Full-term Unit ： JPY Q1 1st Half 9M Full-term Q1 1st Half 9M Full-term Assumption Unit ： ¥ bn. (Full-term basis) Currency （ Apr.-Jun. ） （ Apr.-Sep. ） （ Apr.-Dec. ） （ Apr.-Mar. ） （ Apr.-Jun. ） （ Apr.-Sep. ） （ Apr.-Dec. ） （ Apr.-Mar. ） （ Apr.-Mar. ） Currency Revenue Core Operating Income (Announced on May 13, 2024) USD 139.63 142.61 143.78 145.31 158.24 152.45 145.31 USD +2.4 +0.35 EUR 151.89 154.81 156.24 157.72 170.08 165.83 157.72 EUR +1.9 +0.35 SGD 103.66 105.79 106.90 108.03 116.65 114.37 108.03 AUD 91.94 93.44 94.47 95.32 104.66 101.80 95.32 CNY 19.67 19.87 20.01 20.20 21.76 21.20 20.20 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. October 31, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q2 results Contents Strategic overview Integrated Report Q2 FYE2025 Business performance -1. Q2 performance -2. 1H performance 4. FYE2025 Full-term Forecast Appendix 4 October 31, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q2 results 1. Strategic overview 5 October 31, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q2 results 1. Strategic overview Key Highlights Respond promptly to customer and social trends Continue productivity improvements and price management Seize opportunities to expand business continually Steady progress in non-financial activity Strong commitment to improving corporate value 6 October 31, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q2 results 1. Strategic overview NS Vision 2026 | Enabling the Future Our Medium-term Management plan (MTP) Group 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 October 31, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q2 results 1. Strategic overview Non-financial KPI target in NS Vision 2026 Environment Social Governance ＜ Environment ＞ Reduction rate of GHG emissions (Base year: FYE2019 *1 ) GHG emission reduction contribution exceeds GHG emission (Scope 1+2) ･ Breakdown information ： Please see the details here . (Unit: Thousands of tonnes CO 2 e ) Lower customer GHG emissions through environmental product offerings and applications NSHD Group GHG emission (Scope 1 ＋ 2) ＜ Safety Management ＞ Lost Time Injury Rate ＜ HR ＞ Rate of female employees Rate of female management posts ＜ Compliance ＞ Rate of receiving compliance training FYE2024 Actual 15.3% down X ＞ Y 7,454 5,667 2.09 20.2% 15.4% *2 99.4% FYE2026 Target 18% down X ＞ Y ≤1.6 ≥22% ≥18% 100% *1 The figure for the volume of GHG emissions for FYE2019, which is the reference value, calculates the actual GHG emissions in FYE2019 plus the following: estimated emissions in the European segment in FYE2019 and 2) estimated emissions of the U.S. HyCO business in FYE2019. and 3) Others *2 100% completion rate as of the end of June 2024 8 October 31, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q2 results 1. Strategic overview Material balance & Environmental contribution Input Output Draft under consideration Energy and resource inputs in business activities Environmentally hazardous substances generated by business activities Raw material Air Natural gas 2% 23% Energy 13,367 GWh Electic power Fuels Heat 75% 6% 0.1% Business activities 19% GHG emissions 5,667 thousands of tonnes CO 2 e 81% Scope1 Scope2 Wastewater 27 millions of m 3 Waste emissions 15,170 tonnes By-product gas (CO 2 raw material) Water 33% 40 millions of m 3 Surface water Water supply from local government Groundwater 61% Other Waste disposed of as landfill 3,926 tonnes GHG emission reduction contribution Total 7,454 thousands of tonnes CO 2 e Products & services 3,775 thousands of tonnes CO 2 e Industrial gases 3,679 thousands of tonnes CO 2 e (Note) For details on the reporting data, please refer to P1, " Sustainability Data " in our Integrated Report 2024. 9 October 31, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q2 results 1. Strategic overview Addressing Biodiversity: Participating in the TNFD Forum In August 2024, NSHD participated in the TNFD Forum *1 and register as a TNFD Adopter *2 . NSHD supports the TNFD's aim of shifting to "Nature positive" and will collate and disclose information on each of the recommended disclosure items in accordance with the TNFD framework. July 2024: OIST Coral Project *3 Participating as a special partner. Original bottle by Thermos to support the project *4 Towards the conservation of biodiversity 2021.2 Formulated "Nippon Sanso Group Environmental Policy" 2024.1 Participated in "Keidanren Initiative for Biodiversity Conservation" *5 *1 TNFD Forum: A network in which companies and organizations with expertise in a wide range of fields participate and support the construction of an information disclosure framework based on TNFD. *2 TNFD Adopter: A company or organization that has registered its intention, on the TNFD Website, to make public disclose aligned with the TNFD Recommendations issued in September 2023. Registered companies and organizations need to make disclosures in line with the TNFD Recommendations in respect of their fiscal year of 2024 or 2025. *3 Coral reef conservation activities lead by OIST (Okinawa Institute of Science and Technology Graduate University), with its scientific knowledge of genome information and detection technology of environmental DNA. *4 On sale from September 30, 2024, limited in 2 Thermos shops in Okinawa. *5 The initiative includes companies and organizations that have endorsed the "Keidanren Declaration for Biodiversity and Guideline" (guideline shows vision and the role of companies to achieve the target of a nature positive world in 2030), which was established by Keidanren (Japan Business Federation) and the Keidanren Committee on Nature Conservation. 10 October 31, 2024 | NIPPON SANSO Holdings Supplementary Materials FYE2025 Q2 results Attention : This is an excerpt of the original content. 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