Nippon Sanso : Consolidated Financial Results for FYE2021 (Based on IFRS)

Consolidated Financial Results for Fiscal Year Ending March 31, 2021

(Based on IFRS)

			May 10, 2021
Company name:	Nippon Sanso Holdings Corporation	Stock exchange listing: Tokyo (1st section)
TSE Code:	4091 URL: https://www.nipponsanso-hd.co.jp/
Representative: Yujiro Ichihara, Representative Director, President CEO
Inquiries:	Takayoshi Umehara, General Manager, Investor Relations
Tel.:	[phone]
Scheduled date to be held Ordinary General Meeting of Shareholders: June 18, 2021
Scheduled date to file Securities Report: June 21, 2021
Scheduled date to commence dividend payments:	June 21, 2021

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 FYE2021 (April 1, 2020 - March 31, 2021)

(1) Operating results

												(Percentages indicate year-on-year change)
				Core operating						Net income	Total comprehend-
	Revenue	Operating income	Net income	attributable to
	income	sive income
									owners of the parent
	(¥ million)	%	(¥ million)		%	(¥ million)	%	(¥ million)	%	(¥ million)	%	(¥ million)		%
FYE2021	818,238	(3.8)	87,251		(3.4)	88,846	(5.4)	56,863	3.3	55,214	3.5	118,924		888.9
FYE2020	850,239	14.8	90,337		37.2	93,921	40.5	55,038	25.9	53,340	29.2	12,025		(59.6)
(Reference)	Income before income taxes
	FYE2021: ¥77,706 million [(1.8)% ]
	FYE2020: ¥79,133 million [27.5% ]
	Core operating income is calculated as operating income excluding certain gains and expenses attributable
	to non-recurring factors (non-recurring items).
										Return on equity	Income before		Core operating
			Basic earnings		Diluted net income		attributable to	income taxes to		income to revenue
			per share (Yen)			per share (Yen)		owners of the	total assets ratio		ratio (%)
										parent (%)	(%)
FYE2021				127.59				－			12.0		4.3			10.7
FYE2020				123.26				－			13.1		4.5			10.6
(Reference)	Share of profit (loss) of associates and joint ventures accounted for using the equity method
	FYE2021: ¥5,602 million		FYE2020: ¥3,533 million
(2) Financial position
			Total assets			Total equity		Equity attributable to	Equity attributable to		Equity attributable to
						owners of the parent	owners of the parent		owners of the parent
			(¥ million)			(¥ million)
						(¥ million)	ratio (%)		per share (yen)
FYE2021			1,836,294				543,900			513,164		27.9			1,185.82
(March 31, 2021)
FYE2020			1,751,732				440,693			409,344		23.4			945.91
(March 31, 2020)

(3) Consolidated cash flows

	Cash flows from	Cash flows from	Cash flows from	Balance of cash and cash
	operating activities	investing activities	financing activities	equivalents at term-end
	(¥ million)	(¥ million)	(¥ million)	(¥ million)
FYE2021	149,231	(59,686)	(103,159)	91,058
FYE2020	150,084	(62,629)	(46,242)	100,005

2. Dividends

		Annual Dividend			Total amount	Payout ratio	Ratio of dividends to
							equity attributable to
	End of 1st	End of 2nd	End of 3rd		Term	Total	of dividends	(consolidated)
	quarter	quarter	quarter		end	owners of the parent
			(¥ million )	(%)
	(Yen)	(Yen)	(Yen)		(Yen)	(Yen)	(consolidated) (%)
FYE2020	－	14.00	－		14.00	28.00	12,121	22.7	3.0
FYE2021	－	14.00	－		16.00	30.00	12,987	23.5	2.8
FYE2022	－	16.00	－		16.00	32.00		23.8
(est.)

3. Forecasts for business operations for FYE2022 full term (April 1, 2021 - March 31, 2022)

										(Percentages indicate	year-on-year change)
				Core operating			Net income	Net income	Basic
	Revenue		Operating income	attributable to owners	earnings
		income
									of the parent	per share
	(¥ million)		%	(¥ million)		%	(¥ million)	%	(¥ million)	%	(¥ million)		%	(Yen)
Full term	865,000		5.7	96,000		10.0	96,500	8.6	60,000	5.5	58,200		5.4	134.49
(Reference) Income before income taxes
	FYE2022 full term: ¥ 86,000 million [10.7%]

• 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
3. 1. Changes in accounting policies required by IFRS: None
   2. Changes in accounting policies other than 1.: None
   3. Changes in accounting estimates: None
4. Number of outstanding shares (common shares)

1.	Number of outstanding shares at the end of	As of	433,092,837	As of	433,092,837
	the period (including treasury stock)	Mar. 31, 2021	shares	Mar. 31, 2020	shares
2.	Number of treasury stocks at the end of the	As of	342,332	As of	339,139
	period	Mar. 31, 2021	shares	Mar. 31, 2020	shares
3.	Average number of shares during the period	FYE2021	432,752,228	FYE2020	432,755,426
shares	shares

(Percentages indicate year-on-yearchange)

(Reference) Non-consolidated Business Results

1. Non-consolidated Business Results for FYE2021 full term (April 1, 2020 - March 31, 2021)

(1) Non-consolidated business results

			Sales		Operating	Operating			Ordinary				Net income
				revenue	income			income
		(¥ million)		%	(¥ million)			%	(¥ million)		%	(¥ million)		%		(¥ million)		%
	FYE2021	96,363		(55.4)	4,677		－	8,754			(44.0)	9,032		(39.3)		8,558		(49.9)
	FYE2020	216,006		0.6		－		－	15,636			(6.1)	15,019		(26.3)		17,066		(4.9)
			Net income per share		Diluted net income
					(Yen)					per share(Yen)
	FYE2021					19.77					-
	FYE2020					39.42					-
(2) Non-consolidated financial position
					Total assets			Total equity		Equity attributable to			Net assets per share
								owners of the parent
					(¥ million)				(¥ million)					(¥ million)
										ratio(%)
	FYE2021					990,088				266,436			26.9					615.45
	FYE2020					1,137,024				267,929			23.6					618.90
(Reference)	Shareholders' equity
		FYE2021: ¥266,436 million		FYE2020: ¥267,929 million

• 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-lookingstatements such as the forecasts of financial results stated in this document are based on the information currently available to 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 7, "(4) Future Outlook" in "1. Overview of Business Results."

The Company plans to hold a briefing of results for institutional investors and analysts on Thursday, May 20, 2021. Results materials handed out at that briefing will be posted on the Company website in a prompt manner following the briefing.

NIPPON SANSO Holdings Corporation ( Ticker : 4091.T )

Consolidated Financial Performance for FYE2021 full-term

Contents
1. Overview of Business Results .................................................................................................................................	5
(1)	Overview of Business Results for the Fiscal Year Under Review ...................................................................	5
(2)	Overview of Financial Position for the Fiscal Year Under Review .................................................................	6
(3)	Overview of Cash Flows for the Fiscal Year Under Review............................................................................	6
(4) Future Outlook..................................................................................................................................................	7
(5)	Basic Policy on Profit Distribution and Dividends for FYE2021 and FYE2022 .............................................	7
2. Basic Policy on Selection of Accounting Standards................................................................................................	8
3. Condensed consolidated financial statements and main notes.................................................................................	9
(1)	Condensed Consolidated Statement of Financial Position ...............................................................................	9
(2) Condensed Consolidated Statement of Profit or Loss and Condensed Consolidated Statement of
	Comprehensive Income..................................................................................................................................	11
(3)	Condensed Consolidated Statement of Changes in Equity.............................................................................	13
(4)	Condensed Consolidated Statement of Cash Flows........................................................................................	15
(5)	Notes to the Condensed Consolidated Financial Statements ..........................................................................	17
(Note regarding going concern assumption) ....................................................................................................	17
(Segment information) .....................................................................................................................................	17
(Per-Share Information) ...................................................................................................................................	19
(Significant Subsequent Events).......................................................................................................................	19

NIPPON SANSO Holdings Corporation ( Ticker : 4091.T )

Consolidated Financial Performance for FYE2021 full-term

1. Overview of Business Results

1. Overview of Business Results for the Fiscal Year Under Review (General overview)
   The Nippon Sanso Holdings Group's (NSHD Group) business environment in the first fiscal year under review (from April 1, 2020 to March 31, 2021) was as follows. In the first quarter (from April 1, 2020 to June 30, 2020), the global COVID-19 pandemic caused a significant economic downturn and decline in demand in the countries and regions in which the NSHD Group operates, and production activity in the manufacturing sector rapidly decreased. However, from the start of the second quarter (from July 1, 2020 to September 30, 2020), signs of overall recovery began to emerge. The trend in shipments of air separation gases (oxygen, nitrogen, and argon) has been gradually recovering from the third quarter (from October 1, 2020 to December 31, 2020), but in spite of the improved trends sequentially overall sales remain down as compared to previous fiscal year.
   Against this backdrop, the NSHD Group achieved the following results for the fiscal year under review. Revenue on a consolidated basis decreased 3.8% year on year to ¥818,238 million, core operating income fell 3.4% to ¥87,251 million, operating income decreased 5.4% to ¥88,846 million, and net income attributable to owners of the parent increased 3.5% to ¥55,214 million.
   Core operating income is calculated as operating income excluding certain gains and expenses attributable to non-recurring factors (non-recurring items).

（Overview of business performance by reportable segment）

A breakdown of business performance by reportable segment is as follows. Segment income represents core operating income.

• Gas Business in Japan
  In the industrial gas-related business, revenue from air separation gases, decreased sharply year on year, primarily due to sluggish production activity in relevant industries. Meanwhile, in the electronics- related field, revenue increased in electronic materials gases. In equipment and installation, revenue rose substantially in the electronics-related field. However, there was a large year-on-year decline in revenue primarily in Installation of Air Separation Units and welding & cutting equipment for metal processing
  As a result, in the Gas Business in Japan, revenue decreased 4.8% year on year to ¥338,938 million, while segment income increased 1.3% to ¥29,124 million.
• Gas Business in the United States

In the industrial-gas related business, revenue from air separation gases, decreased sharply year on year, primarily due to packaged and bulk gases. In the on-site business, revenue declined year on year due to the impact of lower demand from gas customers. In equipment and installation, electronics-related revenue increased, but revenue from welding and cutting equipment for metal processing decreased.

As a result, in the Gas Business in the United States, revenue decreased 4.5% year on year to ¥189,994 million and segment income increased 5.4% to ¥23,455 million.

• Gas Business in Europe

Demand for packaged and bulk gases decreased sharply due to strong decline in production activity as a whole in the key regions of Iberia (Spain and Portugal), Germany, and Italy, but trended toward recovery from the third quarter. In the on-site business, a similar trend in demand occurred with suppliers. In equipment and installation, overall demand decreased in general.

As a result, in the Gas Business in Europe, revenue decreased 3.3% year on year to ¥160,035 million and segment income decreased 14.5% to ¥21,254 million.

5