Third Quarter Financial Summary for the Fiscal Year Ending March 2026 [IFRS] (Consolidated)

Overview of Business Performance

During the cumulative period of the third quarter of the fiscal year ending March 2026, revenue amounted to JPY 997.719 billion (up 2.7% YoY), core operating income was JPY 146.247 billion (up 4.6% YoY), operating income was JPY 146.111 billion (up 13.5% YoY), and net income attributable to owners of the parent company for the quarter was JPY 93.140 billion (up 20.2% YoY). Foreign exchange effects contributed positively by approximately JPY 3.7 billion to revenue and about JPY 1.0 billion to core operating income. Despite an ongoing uncertain business environment, continuous efforts in price management and productivity improvement programs contributed to the solid results.

Segment Performance

The Japan segment recorded revenue of JPY 295.374 billion (down 0.1% YoY) and segment profit of JPY 39.126 billion (up 14.1% YoY), supported by price management effects. The U.S. segment posted revenue of JPY 265.268 billion (down 1.8% YoY) and segment profit of JPY 37.075 billion (down 12.1% YoY), affected by rising costs and decreased shipment volume. The Europe segment achieved revenue of JPY 258.232 billion (up 3.8% YoY) and segment profit of JPY 51.279 billion (up 8.4% YoY), driven by price management and acquisition effects. The Asia/Oceania segment saw significant growth with revenue of JPY 154.060 billion (up 16.9% YoY) and segment profit of JPY 14.875 billion (up 15.7% YoY). The Thermos segment recorded revenue of JPY 24.754 billion (up 0.9% YoY) and segment profit of JPY 4.840 billion (up 10.8% YoY).

Financial Position and Cash Flows

Total assets amounted to JPY 2.66767 trillion, an increase of JPY 249.472 billion from the end of the previous consolidated fiscal year, and the equity ratio attributable to owners of the parent company rose to 43.8%. Cash flow from operating activities was an inflow of JPY 181.280 billion (up 16.5% YoY), cash flow from investing activities was an outflow of JPY 150.017 billion (up 22.0% YoY), and cash flow from financing activities was an outflow of JPY 53.256 billion (up 42.2% YoY).

Revision of Earnings Guidance

The full-year earnings guidance for the fiscal year ending March 2026 has been revised to project revenue of JPY 1.33 trillion (up 1.7% YoY), operating income of JPY 194.3 billion (up 17.1% YoY), and net income attributable to owners of the parent company of JPY 123.5 billion (up 25.0% YoY). For details, please refer to the separate 'Notice regarding Revision of Earnings Guidance.'

Status of Business Combination

On July 1, 2025, Nippon Sanso Holdings acquired Coregas Pty Ltd and three other companies in Australia to expand its industrial gas operations in Australia and New Zealand. The acquisition cost was JPY 71.521 billion, with goodwill of JPY 27.771 billion recorded. The post-acquisition revenue and quarterly profit include JPY 13.556 billion and JPY 0.787 billion, respectively.