NIPPON SANSOHOLDINGS CORPORATION

Business Details

Centered on Taiyo Nippon Sanso Corporation, the segment provides a wide range of products and services including Separate Gases such as oxygen, nitrogen, and argon, Specialty Gases such as carbon dioxide, helium, and hydrogen, electronic materials gases, LP Gas, medical gases, Gas-Related Equipment & Construction, and compound semiconductor manufacturing equipment. It serves diverse industrial customers in steel, chemicals, electronics, medical, and other sectors, delivering integrated solutions domestically from manufacturing through sales and facility maintenance.

Recent Overview

Despite lower revenue, profit margin improved significantly due to price management and increased electronics construction revenue

In the Japan segment for FY2026 (ending March 2026), revenue from external customers decreased to ¥406,296 million (down 0.9% year on year) due to declining shipment volumes of Separate Gases and LP Gas, and weak industrial gas-related equipment and construction. On the other hand, price management effects on carbon dioxide, packaged gases, and electronic materials gases, along with increased revenue from progress on medium- to large-scale electronics-related construction projects, contributed to a significant increase in segment profit to ¥54,182 million (up 15.1% year on year). The core operating profit margin improved from 11.0% to 12.7%.

Key Products

Growth Drivers

• Progress on medium- to large-scale electronics-related construction projects and capture of semiconductor-related gas and equipment demand
• Improved profitability through price management effects on carbon dioxide, packaged gases, and electronic materials gases
• Recovery and expansion of electronic materials gas demand amid growth in the domestic electronics industry
• Margin improvement through profitability enhancement programs and business portfolio review
• Continued stable demand in medical gases and home healthcare

Risks

• Continued declining trend in Separate Gases and LP Gas shipment volumes
• Risk of sluggish demand for industrial gas-related equipment and construction
• Risk of weakening electronic materials gas demand amid deterioration in semiconductor market conditions
• Risk of renewed increases in energy costs (electricity rates)
• Risk of fluctuations in equipment and construction demand due to domestic manufacturing capital expenditure trends and economic downturn
• Structural revenue decline impact from converting certain On-Site subsidiaries for specific customers into joint operations and deconsolidating the household LP Gas subsidiary

Business Details

Centered on Matheson Tri-Gas, Inc., the segment manufactures and sells Separate Gases such as oxygen, nitrogen, and argon, Specialty Gases (including electronic materials gases), hydrogen, Dry Ice, and Gas-Related Equipment & Cutting Equipment. Its main customers are in the steel, chemical, and electronics industries, and profitability is enhanced through price management and productivity improvement programs. In FY2026 (ending March 2026), sluggish shipments of products and merchandise combined with rising costs led to lower profit, although price management effects secured higher revenue.

Recent Overview

Higher revenue from price management, but profit declined due to rising costs and lower shipments

In the United States segment for FY2026 (ending March 2026), although shipments of industrial gas products and merchandise were sluggish, price management effects secured a slight increase in revenue to ¥360,557 million (up 0.1% year on year). Meanwhile, revenue declined in the electronics-related portion of the equipment and construction business. Segment profit was significantly impacted by rising costs and lower shipment volumes, declining to ¥52,914 million (down 11.5% year on year), with the core operating profit margin falling from 16.6% to 14.7%.

Key Products

Growth Drivers

• Continued price management for Separate Gases to maintain profitability
• Cost reduction through promotion of productivity improvement programs
• Expansion of production capacity to capture Dry Ice demand for cold chain applications
• Exploration and acquisition of new On-Site business projects
• Expected recovery in Specialty Gases demand for the electronics market

Risks

• Continued sluggish shipment volumes of products and merchandise (declining year on year for full-year FY2026, ending March 2026)
• Profit pressure from rising costs (energy, labor, etc.)
• Risk of trade friction and supply chain disruption amid rising protectionism from U.S. tariff policy
• Weak sales in the equipment and construction segment (sluggish in both industrial gas-related and electronics-related areas)
• Profit pressure from an increasing trend in depreciation and amortization expenses (¥46,211 million in FY2026, ending March 2026)

Business Details

With Nippon Gases Euro-Holding S.L.U. as the holding company, the segment manufactures and sells industrial gases such as oxygen, nitrogen, and argon, medical gases, and Specialty Gases across various European countries including Belgium and Italy. In addition to supplying Separate Gases to the steel, chemical, and electronics industries, it also handles sales of Gas-Related Equipment & Construction and medical-related equipment, as well as plant engineering. The medical field was expanded through the acquisition of a home healthcare services business (ETH) in Spain. This is a key hub strategically driving focus on resilience markets in food and beverage, medical, and environmental sectors.

Recent Overview

Foreign exchange, price management, and M&A contributions drove 6.8% revenue growth and 12.8% profit growth

In the Europe segment for FY2026 (ending March 2026), although shipment volumes of gases including Separate Gases declined, revenue increased due to foreign exchange effects from the weaker euro against the yen (a depreciation of ¥11.92 year on year) and price management effects. In equipment and construction, medical-related equipment and construction performed steadily, and revenue from the Italian plant engineering company acquired in the prior period also contributed to higher revenue. Segment profit was affected by declining shipment volumes but achieved a 12.8% increase due to price management effects and productivity improvement initiatives. Additionally, on March 3, 2026, the Spanish home healthcare services company ETH (acquisition consideration ¥22,432 million, goodwill ¥10,830 million) was acquired, strengthening the business foundation in the medical field.

Key Products

Growth Drivers

• Improved profitability through continued promotion of price management
• Enhanced engineering capabilities and revenue contribution from the acquisition of an Italian plant engineering company
• Expansion of the medical business and enhanced presence through the acquisition of the home healthcare services business (ETH) in Spain
• Focus on resilience markets in food, beverage, medical, and environmental sectors
• Capturing demand for Specialty Gases and related products amid expansion of the European electronics market
• Improved cost efficiency through continued implementation of productivity improvement programs
• Boosting effect on yen-denominated revenue and profit from the weaker euro against the yen

Risks

• Declining trend in gas shipment volumes, including Separate Gases
• Prolonged uncertainty in the European economic outlook and geopolitical risks (Middle East situation, Russia-Ukraine situation)
• Risk of rising costs due to energy price fluctuations
• Provisional accounting treatment related to the ETH acquisition, which may be subject to fair value adjustments within one year of the acquisition date
• Impact on performance from foreign exchange fluctuations (euro-yen)
• Sluggish trend in carbon dioxide demand
• Risk of spillover from trade friction and supply chain disruption amid rising protectionism from U.S. tariff policy

Business Details

With production and sales sites in Singapore, the Philippines, Vietnam, Thailand, Australia, China, South Korea, and other locations, the segment manufactures and sells industrial gases such as oxygen, nitrogen, and argon, LP Gas, and Specialty Gases (electronic materials gases). In addition to serving the steel, chemical, and electronics industries, it also handles medical gases and the Welding-Related Business. In Australia, the segment operates Supagas (LP Gas) and Coregas Group (industrial gases), actively expanding its presence in the Oceania region. In FY2026 (ending March 2026), it achieved the highest growth rate among all segments, with revenue up 18.1% and profit up 31.2% year on year.

Recent Overview

Contribution from the Coregas Group acquisition drove the highest revenue and profit growth among all segments

In FY2026 (ending March 2026), in addition to the full-year contribution of the Australian LP Gas sales business acquired in the prior period, the new consolidation of the Oceania industrial gas business through the acquisition of Coregas Pty Ltd and three other companies (acquisition consideration ¥71,521 million) in July 2025 contributed significantly, resulting in revenue increasing 18.1% year on year to ¥208,452 million. In the electronics area, shipment volumes of electronic materials gases trended toward recovery, and equipment and construction also performed steadily. Segment profit increased significantly by 31.2% year on year to ¥19,746 million, driven by higher revenue.

Key Products

Growth Drivers

• Expansion of the Oceania industrial gas and Welding-Related Business through the acquisition of Coregas Group in Australia (acquisition consideration ¥71,521 million), complementing customer base and product portfolio with Supagas
• Increased electronic materials gas shipment volumes and steady equipment and construction performance amid recovery in the electronics market
• Stable revenue contribution from the full-year impact of the Australian LP Gas sales business (acquired in the prior period)
• Securing large-scale On-Site projects across Asian countries and expanding air separation unit capacity
• Focused investment in the Asia region under the 'Electronics Business Expansion' strategy of the medium-term management plan 'Next Innovation 2030'

Risks

• Cost pressure from rising labor and logistics costs in Australia
• Downward pressure on profit from acquisition-related expenses associated with the Coregas Group integration (total acquisition-related expenses of ¥1,222 million, of which ¥812 million was incurred in the current period)
• Geopolitical and supply chain disruption risks across Asian countries (U.S. tariff policy, Middle East situation, etc.)
• Foreign exchange risk from fluctuations in the Australian dollar and Asian currencies affecting revenue and profit
• Impact of demand fluctuations in the semiconductor and electronics markets on electronic materials gas shipment volumes
• Provisional accounting treatment for the Coregas Group business combination (portion related to ETH acquisition), which may differ from final determined values

Business Details

Centered on Thermos K.K. and Thermos (China) Household Products Co., Ltd., the segment manufactures and sells household goods such as Stainless Steel Vacuum Bottles & Portable Mugs in Japan, South Korea, China, and other markets. It is the group's only consumer-facing (B to C) business segment, with a customer base and sales channels distinct from the industrial gas business. The segment seeks to expand demand and improve customer satisfaction through active new product launches, continuous cost reduction, expansion of directly operated stores, and expansion of e-commerce.

Recent Overview

Higher revenue and profit driven by extreme heat demand and new products in Japan, though revenue declined in South Korea

In FY2026 (ending March 2026), in Japan, sales of Sports Bottles performed steadily, particularly in the first half, due to the impact of extreme heat, and the launch of new products characterized by functional and stylish design also contributed to higher revenue. On the other hand, revenue declined in South Korea. Segment profit increased due to higher revenue in Japan and continued cost reduction. Revenue was ¥33,263 million (up 2.1% year on year), and segment profit was ¥6,511 million (up 3.6% year on year).

Key Products

Growth Drivers

• Capturing demand for Portable Mugs and Sports Bottles through active launch of functional and stylish new products
• Margin improvement through continuous cost reduction activities
• Diversification of sales channels through expansion of directly operated stores and e-commerce
• Improved customer satisfaction through expanded membership sites, AI utilization, and other DX initiatives
• Capturing seasonal demand such as extreme heat demand for Sports Bottles in Japan

Risks

• Risk of increased manufacturing costs (raw materials, production costs) due to the weaker yen
• Risk of weakening demand in overseas markets, such as sluggish sales in the South Korean market
• Demand fluctuation risk specific to the B to C consumer business (seasonality, trend changes)
• Risk of intensified price competition and similar product launches by competitors
• Geopolitical and supply chain disruption risks at manufacturing bases in China