Nippon Paint Holdings Co., Ltd. · TSE:4612
Nippon Paint — Nippon Paint Hldgs — Q1 2024 Earnings Presentation
29 slides from Nippon Paint's earnings presentation, May 14, 2024
Slide 1: FY2024 1Q Financial Results Presentation Material
May 15, 2024 FY2024 1Q Financial Results Presentation Material FY2024 1Q Summary/Topics P.3 Supplemental Material P.8 1. FY2024 1Q Results: Highlights P.9 2. FY2024 1Q Results: By Segment P.12 (Appendix) Reference Data
Slide 2: Supplementary Information
Supplementary Information Analysis of operational results In this document, we present our operational results in two formats: the reported basis (“Tanshin”) and the adjusted basis (“Non-GAAP”). The analysis of factors contributing to changes primarily utilize Non-GAAP data, except for QoQ analysis
Slide 3: FY2024 1Q Operational Results – Increased Revenue/Profit with Margin Improvement
1. FY2024 1Q Operational Results –Increased Revenue/Profit with Margin Improvement ◆ Tanshin FY2024 1Q • Increased revenue (+16.4%), propelled by volume growth and flow-through of price increases, notably in decorative business, FX impact and new consolidation • Gross profit margin improved by1.5pp
Slide 4: Raw Material Market Conditions and Impact on Our Operations
2. Raw Material Market Conditions and Impact on Our Operations No significant change in the RMCC ratio anticipated with prices varying across regions and raw materials FY2024 1Q FY2024 2Q and beyond • Crude oil prices have increased by 20% since December 2023, influenced by factors • The crude oil m
Slide 5: Market & Business Environment
3. Market & Business Environment DGL DGL Japan NIPSEA China Americas (Pacific) (Europe) Automotive FY2024 1Q Decorative TUC TUB Automotive FY2024 2Q (outlook) Decorative TUC TUB ■ Market (YoY) ■Business (vs. Market)* *NPHD's estimates Strong Weak Outperform Inline Underperform 5
Slide 6: Summary of Operating Results in Major Segments
4. Summary of Operating Results in Major Segments (Billion yen) Tanshin Non-GAAP FY2024 FY2024 Overview YoY YoY 1Q 1Q Revenue 46.4 -1.2% 46.1 -1.9% Revenue remained flat, impacted by soft market conditions in the automotive, decorative, and industrial segments Japan OP 3.7 +40.7% 3.6 +40.7% Higher p
Slide 7: Major Topics
5. Major Topics Changed the Closing Schedule of the Buyback of the Two India Businesses (NPI and BNPA) (Announced on May 15) • Closing date has been changed from the first half of 2024 to within 2024 due to the approval process from the Indian authorities taking longer than anticipated • The impact
Slide 8: Supplemental Material
Supplemental Material 1. FY2024 1Q Results: Highlights … P.9 2. FY2024 1Q Results: By Segment … P.12 (Appendix) Reference Data
Slide 9: 1. FY2024 1Q Results: Highlights
1. FY2024 1Q Results: Highlights 9
Slide 10: Highlights (Consolidated)
1-1. Highlights (Consolidated) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY (％) (Amount) (％) Key one-off factors 1Q 1Q 1Q 1Q (the difference between Tanshin and Non-GAAP excluding FX impact) Revenue 330.2 384.3 16.4% 330.0 365.0 35.0 10.6% *Please refer
Slide 11: Highlights (by Segment)
1-2. Highlights (by Segment) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 1Q 1Q (％) 1Q 1Q (Amount) (％) Revenue 47.0 46.4 -1.2% 47.0 46.1 -0.9 -1.9% Japan Operating profit 2.6 3.7 40.7% 2.6 3.6 1.1 40.7% Revenue 178.0 216.3 21.5% 177.8 210.6 32.7 18.4% NI
Slide 12: 2. FY2024 1Q Results: By Segment
2. FY2024 1Q Results: By Segment 12
Slide 13: Revenue and Operating Profit Analysis
2-1. Revenue and Operating Profit Analysis (Billion yen) Paint and Coatings Business * Revenue Non-GAAP basis +10.6% (+35.0) Tanshin basis +16.4% (+54.1) Operating Profit Non-GAAP basis +5.4 *Products included in the Paint and Coatings Business such as semi-finished products and fine chemicals with
Slide 14: Japan
2-2. Japan (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 1Q 1Q (％) 1Q 1Q (Amount) (％) Automotive coatings 10.4 9.3 -10.9% 10.4 9.3 -1.1 -10.9% Decorative paints 11.1 10.7 -3.7% 11.1 10.7 -0.4 -3.7% Key one-off factors (the difference between Tanshin and N
Slide 15: NIPSEA China
2-3. NIPSEA China (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 1Q 1Q (％) 1Q 1Q (Amount) (％) Automotive coatings 9.6 12.1 25.7% 9.6 11.3 1.7 17.5% Key one-off factors Decorative paints 93.2 112.3 20.5% 93.1 104.8 11.8 12.6% (the difference between Tanshin
Slide 16: NIPSEA Except China
2-4. NIPSEA Except China*1 (Billion yen) Results (Tanshin) Results (Non-GAAP) Key one-off factors FY2023 FY2024 YoY FY2023 FY2024 YoY (the difference between Tanshin and Non-GAAP excluding FX impact) Figures are adjusted for YoY *Please refer to “Breakdown of Adjustments” in the Reference Data secti
Slide 17: PT Nipsea (Indonesia) & Betek Boya (Türkiye)
2-5. PT Nipsea (Indonesia) & Betek Boya (Tϋrkiye) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 1Q 1Q (％) 1Q 1Q (Amount) (％) Revenue 16.3 16.6 1.7% 16.3 15.5 -0.8 -4.7% PT Nipsea Operating profit 5.5 6.1 11.0% 5.5 5.7 0.2 3.5% (Indonesia) OP margin 33.9%
Slide 18: DGL (Pacific)
2-6. DGL (Pacific) (Billion yen) Results (Tanshin) Results (Non-GAAP) *1 FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 1Q 1Q (％) 1Q 1Q (Amount) (％) Decorative paints 26.7 30.0 12.4% 27.7 28.0 0.3 1.0% Industrial coatings 2.0 2.4 21.7% 2.0 2.3 0.3 13.3% Key one-off factors Revenue (the difference between T
Slide 19: DGL (Europe)
2-7. DGL (Europe) (Billion yen) Results (Tanshin) Results (Non-GAAP) *1 FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 1Q 1Q (％) 1Q 1Q (Amount) (％) Key one-off factors Decorative paints 26.4 28.9 9.3% 27.1 25.7 -1.4 -5.0% (the difference between Tanshin and Non-GAAP excluding FX impact) *Please refer to “B
Slide 20: Americas
2-8. Americas (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 1Q 1Q (％) 1Q 1Q (Amount) (％) Key one-off factors (the difference between Tanshin and Non-GAAP excluding FX impact) Automotive coatings 9.2 11.8 27.7% 9.2 10.4 1.2 12.5% *Please refer to “Breakdow
Slide 21: Quarterly Financial Performance Trends in Major Segments
2-9. Quarterly Financial Performance Trends in Major Segments (For reference) Basic seasonal factors *Market-based High Low demand demand Demand tends to be lower in 1Q due to the deepening cold and in 3Q due to more intensely hot days that Japan Decorative 4Q > 2Q > 3Q > 1Q will slow construction p
Slide 22: Nippon Paint Holdings Investor Relations
NIPPON PAINT HOLDINGS CO., LTD. Investor Relations Email: ir_kouhou@nipponpaint.jp The forward-looking statements in this document are based on information available at the time of preparation and involve inherent risks and uncertainties. Accordingly, the actual results and performance of Nippon Pai
Slide 23: FY2024 1Q Financial Results Presentation Material Reference Data
FY2024 1Q Financial Results Presentation Material Reference Data May 15, 2024 Nippon Paint Holdings Co., Ltd. ーContentsー 1. Trends in Consolidated Financial Results and Key Financial Data 2 2. Revenue & Operating Profit Transition by Segment 3 3. Revenue & Operating Profit Contribution from DuluxGro
Slide 24: Trends in Consolidated Financial Results and Key Financial Data
1. Trends in Consolidated Financial Results and Key Financial Data <Consolidated earnings> (Billion yen) FY2021*1 FY2022*2 FY2023 FY2024 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y 1Q Revenue 222.7 259.1 254.5 262.0 998.3 285.1 337.0 357.9 329.1 1,309.0 330.2 362.7 393.0 356.7 1,442.6 384.3 Oper
Slide 25: Revenue & Operating Profit Transition by Segment
2. Revenue & Operating Profit Transition by Segment *For the trends in earnings under the former reportable segments, please see the "Data by Segment" page of our IR website. ▶Data by Segment https://www.nipponpaint-holdings.com/en/ir/results/segment/ (Billion yen) FY2021*1 FY2022*2 FY2023 FY2024 1Q
Slide 26: Revenue & Operating Profit Transition by Segment: NIPSEA
2. Revenue & Operating Profit Transition by Segment *For the trends in earnings under the former reportable segments, please see the "Data by Segment" page of our IR website. ▶Data by Segment https://www.nipponpaint-holdings.com/en/ir/results/segment/ (Billion yen) FY2021*1 FY2022*2 FY2023 FY2024 1Q
Slide 27: Revenue & Operating Profit Contribution from DuluxGroup, Betek Boya, PT Nipsea and Alina
3. Revenue & Operating Profit Contribution from DuluxGroup, Betek Boya, PT Nipsea and Alina (Billion yen) FY2021*1 FY2022*1 FY2023*1 FY2024*1 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y 1Q Revenue 41.5 42.7 43.6 48.5 176.2 68.0 79.1 84.5 83.3 314.9 81.7 89.0 95.5 94.2 360.4 93.1 DuluxGroup Opera
Slide 28: Breakdown of Adjustments (FY2023 1Q vs. FY2024 1Q)
4. Breakdown of Adjustments (FY2023 1Q vs. FY2024 1Q) FY2023 1Q FY2024 1Q M&A New M&A New (Billion yen) Subsidy, Impairment Credit loss Subsidy, Impairment Credit loss FX related acqui- Total FX related acqui- Total etc.*1 loss provision etc.*1 loss provision expenses sitions expenses sitions Automo
Slide 29: Breakdown of Adjustments (FY2023 1Q vs. FY2024 1Q)
4. Breakdown of Adjustments (FY2023 1Q vs. FY2024 1Q) FY2023 1Q FY2024 1Q M&A New M&A New (Billion yen) Subsidy, Impairment Credit loss Subsidy, Impairment Credit loss FX related acqui- Total FX related acqui- Total etc.*1 loss provision etc.*1 loss provision expenses sitions expenses sitions Automo