Nippon Paint Holdings Co., Ltd. · TSE:4612
Nippon Paint — Nippon Paint Hldgs — Q4 2022 Earnings Presentation
50 slides from Nippon Paint's earnings presentation, Feb 14, 2023
Slide 1: FY2022 4Q Financial Results Presentation Material
February 14, 2023 FY2022 4Q Financial Results Presentation Material DuluxGroup
Slide 2: Contents
□ FY2022 4Q Summary/Topics ・・・ P.3 □ Supplemental Material ・・・ P.14 1. FY2022 4Q Results: Highlights ・・・ P.15 Contents 2. FY2022 4Q Results: By Segment ・・・ P.18 3. FY2022 Results ・・・ P.27 (Appendix) Reference Data Disclosure policy for this document: - Both reported base (‘Tanshin’) and adjusted bas
Slide 3: Summary: FY2022 4Q Operating Results
1. Summary: FY2022 4Q Operating Results ◆ Tanshin FY2022 4Q *1 • Higher revenue driven by pricing flow through in decorative business, new consolidation of Cromology and JUB, and FX • Gross profit margin improved YoY and QoQ for two consecutive quarters due to improved RMCC*2 ratio • Hyperinflation
Slide 4: Summary: FY2022 Operating Results
2. Summary: FY2022 Operating Results ◆ Tanshin FY2022 *1 Record revenue driven by strong pricing mainly in decorative business, new consolidation and FX. However, revenue was slightly below August guidance (¥1,320.0 bn) OP reached record high and exceeded August guidance (¥105.0 bn) driven by hi
Slide 5: Summary: FY2023 Forecast
3. Summary: FY2023 Forecast ◆ Summary • Revenue forecast to grow 7.0% in 2023 to record high driven by pricing flow through in every region and recovery FY2023 Forecast from the pandemic in China and other Asia in decorative business, along with global recovery of automotive market • RMCC ratio expe
Slide 6: Assumptions for FY2023 Forecast (1)
4. Assumptions for FY2023 Forecast (1) Revenue OP margin FY2022 FY2023 FY2022 FY2023 Overview Results Forecast Results Forecast (Tanshin/bn yen) (In LCY*1) (Tanshin/%) (In LCY)*2 Segment total 186.1 c. +5% 2.8% ↑ Higher revenue driven by auto production recovery and pricing flow through, despite Aut
Slide 7: Assumptions for FY2023 Forecast (2)
4. Assumptions for FY2023 Forecast (2) Revenue OP margin FY2022 FY2023 FY2022 FY2023 Overview Results Forecast Results Forecast (Tanshin/bn yen) (In LCY) (Tanshin/%) (In LCY)＊1 Segment total 257.8 c. +10% 14.6% → Driving solutions and innovative products, Building brand thought leadership amongst Ma
Slide 8: Raw Material Market Conditions and Our Responses
5. Raw Material Market Conditions and Our Responses Pursuing margin improvement through pricing flow through and lowering of RMCC ratio 4Q 2022 1Q 2023 and beyond • Economic activities slowed down globally due to China’s Zero-COVID • Commodity market, including crude oil and naphtha, policy (which h
Slide 9: Market & Business Environment
6. Market & Business Environment Auto production is expected to rebound globally in 2023 despite lingering impact of chip shortage Japan Nipsea China Oceania Americas Europe Automotive FY2022 4Q Decorative DIY Project Automotive FY2023 1Q (outlook) Decorative TUC TUB Automotive FY2023 Full Year (out
Slide 10: Summary of Operating Results in Major Segments
7. Summary of Operating Results in Major Segments (Billion yen) Tanshin Non-GAAP Overview 4Q 2022 YoY 4Q 2022 YoY ▶Decorative Higher revenue due to successful sales promotion activities, such as customer campaigns and rebranding of Revenue 51.3 +13.7% 50.8 +12.5% flagship products ▶Automotive Higher
Slide 11: Major Topics ①: Acquisition of NPT by DuluxGroup
8. Major Topics ① Acquisition of NPT (European paint adjacencies manufacturer) by DuluxGroup (announced on Feb. 6) • Acquiring 51% stake in NPT, an Italy-based manufacturer and distributor of sealants and adhesives with options for the remaining 49% to be either acquired by DuluxGroup or ◇Overview o
Slide 12: Major Topics ②: Nipsea China Awards
8. Major Topics ② Nipsea China was granted various awards • Numerous awards is a testament of the trust that our customers have placed in us. Continue and strive to innovate our products and services as a leading brand bringing value to our consumers Chnbrand People‘s Daily Online CIAA China Net Pro
Slide 13: Major Topics ③: Independent Director Governance Articles
8. Major Topics ③ Launched monthly internet distribution of a series of governance articles: “Q&A with Independent Director” • Lead Independent Director Masayoshi Nakamura responds to feedback and questions about governance from investors (updated at the end of each month) ▶Q&A with Independent Dire
Slide 14: Supplemental Material
Supplemental Material 1. FY2022 4Q Results: Highlights … P.15 2. FY2022 4Q Results: By Segment … P.18 3. FY2022 Results … P.27 (Appendix) Reference Data
Slide 15: FY2022 4Q Results: Highlights
1. FY2022 4Q Results: Highlights 15
Slide 16: Highlights (Consolidated)
1-1．Highlights (Consolidated) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2021 FY2022 YoY FY2021 FY2022 YoY YoY 4Q 4Q (％) 4Q 4Q (Amount) (％) Revenue 262.0 329.1 25.6% 262.2 292.9 30.7 11.7% Operating profit 21.5 29.5 36.8% 20.9 31.3 10.4 49.9% OP margin 8.2% 8.9% 0.7pt 8.0% 10.7% - 2.7pt EB
Slide 17: Highlights (by Segment)
1-2．Highlights (by Segment) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2021 FY2022 YoY FY2021 FY2022 YoY YoY 4Q *1 4Q (％) 4Q *1 4Q (Amount) (％) Revenue 45.1 51.3 13.7% 45.1 50.8 5.7 12.5% Japan OP profit*2 1.3 1.0 -24.7% 1.3 3.1 1.8 134.1% Revenue 149.6 169.6 13.3% 149.8 171.1 21.3 14.2% N
Slide 18: FY2022 4Q Results: By Segment
2. FY2022 4Q Results: By Segment 18
Slide 19: Revenue and Operating Profit Analysis
2-1．Revenue and Operating Profit Analysis (Billion yen) Paint and Coatings Business *1 Revenue Non-GAAP basis +11.7% (+30.7) Tanshin basis +25.6% (+67.1) *2 Operating Profit Non-GAAP basis +10.4 *1 Products included in the Paint and Coatings Business such as semi-finished products and fine chemicals
Slide 20: Japan
2-2．Japan (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2021 FY2022 YoY FY2021 FY2022 YoY YoY Quarterly performance (Tanshin) 4Q 4Q (％) 4Q 4Q (Amount) (％) Automotive coatings 8.9 10.0 12.0% 8.9 10.0 1.1 12.0% Decorative paints 12.1 12.7 4.8% 12.1 12.7 0.6 4.8% Industrial coatings 10.0 10.5 4.
Slide 21: Nipsea (Nipsea China)
2-3．Nipsea (Nipsea China) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2021 FY2022 YoY FY2021 FY2022 YoY YoY Quarterly performance (Tanshin) 4Q 4Q (％) 4Q 4Q (Amount) (％) Automotive coatings 10.7 17.3 60.9% 10.7 15.5 4.7 44.1% Decorative paints 78.1 78.1 -0.1% 78.3 71.5 -6.7 -8.6% Revenue Ind
Slide 22: Nipsea (Nipsea Except China)
2-4．Nipsea (Nipsea Except China*1) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2021 FY2022 YoY FY2021 FY2022 YoY YoY Quarterly performance (Tanshin) *2 4Q 4Q*2 (％) 4Q 4Q (Amount) (％) Revenue 53.6 67.4 25.8% 53.6 77.8 24.2 45.2% Operating profit 10.3 12.9 24.6% 10.3 13.8 3.4 33.4% OP margin
Slide 23: PT Nipsea (Indonesia) & Betek Boya (Türkiye)
2-5．PT Nipsea (Indonesia) & Betek Boya (Tϋrkiye) Results (Tanshin) Results (Non-GAAP) (Billion yen) PT Nipsea (Indonesia) FY2021 FY2022 YoY FY2021 FY2022 YoY YoY Betek Boya (Tϋrkiye) 4Q 4Q (％) 4Q 4Q (Amount) (％) Quarterly performance (Tanshin) Quarterly performance (Tanshin) Revenue 11.7 13.7 16.9%
Slide 24: DuluxGroup
2-6．DuluxGroup*1 (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2021 FY2022 YoY FY2021 FY2022 YoY YoY Quarterly performance (Tanshin) 4Q 4Q (％) 4Q 4Q (Amount) (％) Decorative paints 25.3 52.6 108.1% 25.3 26.3 1.0 4.0% Industrial coatings 2.0 2.4 20.9% 2.0 2.2 0.2 9.1% Revenue Paint related busi
Slide 25: New Consolidation: Cromology & JUB
2-7．New Consolidation: Cromology (Europe) & JUB (Europe) Results (Tanshin) Results (Non-GAAP) (Billion yen) Cromology (Europe) FY2021 FY2022 YoY FY2021 FY2022 YoY YoY JUB (Europe) 4Q 4Q (％) 4Q 4Q (Amount) (％) Quarterly performance (Tanshin) Quarterly performance (Tanshin) Revenue - 22.9 - - - - - Cr
Slide 26: Americas
2-8．Americas (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2021 FY2022 YoY FY2021 FY2022 YoY YoY Quarterly performance (Tanshin) 4Q 4Q (％) 4Q 4Q (Amount) (％) Automotive coatings 5.5 8.6 55.1% 5.5 6.9 1.4 25.4% Decorative paints 12.9 15.8 22.9% 12.9 12.9 -0.0 -0.1% Revenue Fine chemicals 0.4 0
Slide 27: FY2022 Results
((@) NIPPON PAINT HOLDINGS CO, LTD. 3. FY2022 Results
Slide 28: Highlights (Consolidated)
3-1．Highlights (Consolidated) (Billion yen) Results (Tanshin) Results (Non-GAAP) YoY YoY YoY FY2021 FY2022 FY2021 FY2022 (％) (Amount) (％) Revenue 998.3 1,309.0 31.1% 998.2 1,138.5 140.3 14.1% Operating profit 87.6 111.9 27.7% 92.9 107.8 15.0 16.1% OP margin 8.8% 8.5% -0.2pt 9.3% 9.5% - 0.2pt EBITDA
Slide 29: Highlights (by Segment)
3-2．Highlights (by Segment) (Billion yen) Results (Tanshin) Results (Non-GAAP) *1 YoY *1 YoY YoY FY2021 FY2022 FY2021 FY2022 (％) (Amount) (％) Revenue 174.0 186.1 6.9% 174.0 184.2 10.1 5.8% Japan OP profit*2 9.5 5.3 -44.5% 9.7 7.8 -1.9 -19.3% Revenue 571.6 708.5 24.0% 571.5 684.0 112.4 19.7% Nipsea O
Slide 30: Revenue and Operating Profit Analysis
3-3．Revenue and Operating Profit Analysis (Billion yen) Paint and Coatings Business *1 Revenue Non-GAAP basis +14.1% (+140.3) Tanshin basis +31.1% (+310.7) *2 Operating Profit Non-GAAP basis +15.0 *1 Products included in the Paint and Coatings Business such as semi-finished products and fine chemica
Slide 31: Japan
3-4．Japan (Billion yen) Results (Tanshin) Results (Non-GAAP) YoY YoY YoY FY2021 FY2022 FY2021 FY2022 (％) (Amount) (％) Automotive coatings 35.3 35.1 -0.6% 35.3 35.1 -0.2 -0.6% Decorative paints 45.4 47.8 5.4% 45.4 47.8 2.4 5.4% Industrial coatings 38.1 40.0 5.0% 38.1 40.0 1.9 5.0% Revenue Fine chemic
Slide 32: Nipsea (Nipsea China)
3-5．Nipsea (Nipsea China) (Billion yen) Results (Tanshin) Results (Non-GAAP) YoY YoY YoY FY2021 FY2022 FY2021 FY2022 (％) (Amount) (％) Automotive coatings 38.4 50.1 30.7% 38.3 43.9 5.6 14.6% Decorative paints 312.4 374.2 19.8% 312.4 328.0 15.6 5.0% Revenue Industrial coatings 25.7 24.1 -6.1% 25.7 21.
Slide 33: Nipsea (Nipsea Except China)
3-6．Nipsea (Nipsea Except China*1) (Billion yen) Results (Tanshin) Results (Non-GAAP) YoY *2 YoY YoY FY2021 FY2022*2 FY2021 FY2022 (％) (Amount) (％) Revenue 192.5 257.8 33.9% 192.5 288.9 96.3 50.0% Operating profit 33.0 37.8 14.5% 32.8 38.0 5.2 15.8% OP margin 17.1% 14.6% -2.5pt 17.0% 13.1% - -3.9pt
Slide 34: PT Nipsea (Indonesia) & Betek Boya (Türkiye)
3-7．PT Nipsea (Indonesia) & Betek Boya (Tϋrkiye) Results(Tanshin) Results(Non-GAAP) (Billion yen) YoY YoY YoY FY2021 FY2022 FY2021 FY2022 (％) (Amount) (％) Revenue 39.5 52.3 32.5% 39.5 45.8 6.3 15.9% PT Nipsea Operating profit 11.8 16.7 42.1% 13.1 14.6 1.5 11.3% (Indonesia) OP margin 29.7% 31.9% 2.2p
Slide 35: DuluxGroup
3-8．DuluxGroup*1 (Billion yen) Results (Tanshin) Results (Non-GAAP) YoY YoY YoY FY2021 FY2022 FY2021 FY2022 (％) (Amount) (％) Decorative paints 90.4 199.9 121.2% 90.4 94.9 4.5 4.9% Industrial coatings 7.4 9.1 23.5% 7.4 8.3 0.9 12.0% Revenue Paint related business 78.4 105.8 34.9% 78.4 84.2 5.7 7.3% T
Slide 36: New Consolidation: Cromology & JUB
3-9．New Consolidation: Cromology (Europe) & JUB (Europe) Results(Tanshin) Results(Non-GAAP) (Billion yen) YoY YoY YoY FY2021 FY2022 FY2021 FY2022 (％) (Amount) (％) Revenue - 97.5 - - - - - Cromology Operating profit - 4.1 - - - - - (Europe) OP margin - 4.2% - - - - - OP margin *1 - 7.1% - - - - - Res
Slide 37: Americas
3-10．Americas (Billion yen) Results (Tanshin) Results (Non-GAAP) YoY YoY YoY FY2021 FY2022 FY2021 FY2022 (％) (Amount) (％) Automotive coatings 23.3 32.3 38.4% 23.3 26.9 3.6 15.3% Decorative paints 51.8 65.7 26.8% 51.8 54.9 3.1 6.0% Revenue Fine chemicals 1.3 1.5 23.1% 1.3 1.3 0.0 2.9% Total 76.4 99.5
Slide 38: Investor Relations Contact and Disclaimer
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 39: FY2022 4Q Financial Results Reference Data
FY2022 4Q Financial Results Presentation Material Reference Data February 14, 2023 Nippon Paint Holdings Co., Ltd. ーContentsー 1. Revenue & Operating Profit Transition by Segment (Former Reportable Segment) 2 2. Revenue & Operating Profit Transition by Segment (New Reportable Segment) 4 3. Revenue &
Slide 40: Revenue & OP Transition by Segment (Former Segment)
1. Revenue & Operating Profit Transition by Segment (Former Reportable Segment) (Billion yen) FY2018 FY2019 FY2020*1 FY2021*1 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y Automotive 11.5 11.1 10.6 12.1 45.3 11.9 11.4 11.3 10.2 44.9 10.2 5.5 8.9 10.1 34.7 10.2 8.5 7.6 8.9 35.3 Deco
Slide 41: Revenue & OP Transition by Segment (Former Segment)
1. Revenue & Operating Profit Transition by Segment (Former Reportable Segment) (Billion yen) FY2018 FY2019 FY2020*1 FY2021*1 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y Automotive 18.5 19.6 17.6 18.5 74.2 16.5 17.2 15.9 17.5 67.1 11.7 11.3 15.0 18.2 56.3 18.2 18.0 15.8 20.5 72.5
Slide 42: Revenue & OP Transition by Segment (New Segment)
2. Revenue & Operating Profit Transition by Segment (New Reportable Segment) (Billion yen) FY2021*1 FY2022 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y Automotive 10.2 8.5 7.6 8.9 35.3 8.7 7.4 9.1 10.0 35.1 Decorative 9.9 11.9 11.4 12.1 45.4 10.4 12.8 11.9 12.7 47.8 Industrial 9.0 9.6 9.6 10.0 38.1 9.1 10.2 10.2
Slide 43: Revenue & OP Transition by Segment (New Segment)
2. Revenue & Operating Profit Transition by Segment (New Reportable Segment) (Billion yen) FY2021*1 FY2022 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y Automotive 18.6 18.4 16.0 21.0 74.1 21.2 20.3 24.5 30.5 96.5 Decorative 85.5 112.2 114.4 107.4 419.5 111.8 140.2 149.7 112.3 514.0 Industrial 8.9 10.4 9.9 10.1 3
Slide 44: Revenue & OP Contribution from DuluxGroup, Cromology, JUB, Betek Boya, PT Nipsea
3. Revenue & Operating Profit Contribution from DuluxGroup, Cromology, JUB, Betek Boya and PT Nipsea (Billion yen) FY2019*1 FY2020*1 FY2021*1 FY2022*1 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y 1Q 2Q F/Y 4Q F/Y DuluxGroup Revenue Before 13.1 34.4 47.6 31.8 35.0 40.3 41.2 148.3 41.5 42.7 43.6 48
Slide 45: Breakdown of Adjustments (FY2021 4Q vs. FY2022 4Q)
4. Breakdown of Adjustments (FY2021 4Q vs. FY2022 4Q) FY2021 4Q FY2022 4Q (Billion yen) M&A Provison New M&A Provison New Subsidy, Subsidy, FX related for bad acqui- Total FX related for bad acqui- Total etc.*1 etc.*1 expenses debt sitions expenses debt sitions Automotive - - - - - - - - - - - - Dec
Slide 46: Breakdown of Adjustments (FY2021 4Q vs. FY2022 4Q)
4. Breakdown of Adjustments (FY2021 4Q vs. FY2022 4Q) FY2021 4Q FY2022 4Q (Billion yen) M&A Provison New M&A Provison New Subsidy, Subsidy, FX related for bad acqui- Total FX related for bad acqui- Total etc.*1 etc.*1 expenses debt sitions expenses debt sitions Automotive -0.0 - - - - -0.0 3.0 - - -
Slide 47: Breakdown of Adjustments (FY2021 vs. FY2022)
5. Breakdown of Adjustments (FY2021 vs. FY2022) FY2021 FY2022 (Billion yen) M&A Provison New M&A Provison New Subsidy, Subsidy, FX related for bad acqui- Total FX related for bad acqui- Total etc.*1 etc.*1 expenses debt sitions expenses debt sitions Automotive - - - - - - - - - - - - Decorative - -
Slide 48: Breakdown of Adjustments (FY2021 vs. FY2022)
5. Breakdown of Adjustments (FY2021 vs. FY2022) FY2021 FY2022 (Billion yen) M&A Provison New M&A Provison New Subsidy, Subsidy, FX related for bad acqui- Total FX related for bad acqui- Total etc.*1 etc.*1 expenses debt sitions expenses debt sitions Automotive 0.0 - - - - 0.0 10.2 - - - - 10.2 Decor
Slide 49: Key Financial Data
6. Key Financial Data ＜Capital Expenditure, Depreciation, R&D Expenses> FY2021 FY2022 FY2021 FY2022 (Billion yen) 4Q 4Q Property, plant and Capital 13.8 45.5 10.6 46.2 equipment expenditure Intangible assets 2.6 4.7 0.9 3.6 Total 16.4 50.2 11.5 49.8 Property, plant and 7.1 27.4 9.9 36.4 Depreciation
Slide 50: Key Market Data
7. Key Market Data <Paint sales volume> FY2019 FY2020 FY2021 FY2022 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y Japan*1 (10,000t) 43 43 43 43 172 40 36 38 42 156 40 40 40 41 161 39 39 38 27 143 *1 Source: Japan Paint Manufacturers Association; FY2022 4Q covers October and Novembe