Nippon Paint Holdings Co., Ltd. · TSE:4612

Nippon Paint — Nippon Paint Hldgs — Q2 2024 Earnings Presentation

42 slides from Nippon Paint's earnings presentation, Aug 8, 2024

  1. Slide 1: FY2024 2Q Financial Results Presentation Material

    August 8, 2024 FY2024 2Q Financial Results Presentation Material FY2024 2Q Summary/Topic P.3 Supplemental Material P.11 1. FY2024 2Q Results: Highlights P.12 2. FY2024 2Q Results: By Segment P.15 4. FY2024 1H Results P.25 (Appendix) Reference Data

  2. 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

  3. Slide 3: FY2024 2Q Operational Results – Revenue and Operating Profit Increase

    1. FY2024 2Q Operational Results –Revenue and Operating Profit Increase with Enhanced Margins (Non-GAAP) ◆ Tanshin FY2024 2Q • Revenue increased (+19.3%), driven by volume growth, particularly in decorative business, along with favorable FX impacts and new consolidations • Continued to apply hyperin

  4. Slide 4: FY2024 Guidance (1)

    2. FY2024 Guidance (1) ◆ Overview of 1H • Revenue performance varied across regions and business segments, e.g., NIPSEA China TUC slightly missed our expectations, while the automotive business in the Americas surpassed them. Overall, the consolidated revenue was almost in line with our expectations

  5. Slide 5: FY2024 Guidance (2)

    2. FY2024 Guidance (2) (Billion yen) FY2023 Results FY2024 Guidance (In Local Currency) (Tanshin basis) Feb. Guidance Latest forecast YoY YoY *1 YoY YoY *1 YoY (OP margin) Revenue OP margin (Revenue) (OP margin) (Revenue) (OP margin) vs Feb. Guidance Segment total 201.5 9.5% +0~5% → ▼ c. ±0% → Inlin

  6. Slide 6: FY2024 Guidance (3)

    2. FY2024 Guidance (3) (Billion yen) FY2023 Results FY2024 Guidance (In Local Currency) (Tanshin basis) Feb. Guidance Latest forecast YoY YoY * YoY YoY * YoY (OP margin) Revenue OP margin (Revenue) (OP margin) (Revenue) (OP margin) vs Feb. Guidance Segment total 360.4 9.6% c.+10% → ▼ +5~10% → Slight

  7. Slide 7: Raw Material Market Conditions and Operational Impact

    3. Raw Material Market Conditions and Operational Impact No major fluctuations are expected in the RMCC ratio, despite price variations across regions and raw materials FY2024 2Q FY2024 3Q and beyond • Spot prices for both crude oil and naphtha have risen by 5% since the end of March 2024. • By the

  8. Slide 8: Market & Business Environment

    4. Market & Business Environment DGL DGL Japan NIPSEA China Americas (Pacific) (Europe) Automotive FY2024 2Q Decorative TUC TUB Automotive FY2024 3Q (outlook) Decorative TUC TUB Automotive FY2024 (outlook) Decorative TUC TUB ■ Market (YoY) ■Business (vs. Market)* *Internal estimates Strong Weak Outp

  9. Slide 9: Summary of Operating Results in Major Segments

    5. Summary of Operating Results in Major Segments (Billion yen) Tanshin Non-GAAP FY2024 FY2024 Overview YoY YoY 2Q 2Q Revenue remained flat, despite impacts of soft market conditions in the automotive, decorative, and industrial segments, largely Revenue 50.8 +1.0% 50.2 -0.2% due to the flow-through

  10. Slide 10: Major Topic: Release of Integrated Report 2024 on July 31

    6. Major Topic Release of Integrated Report 2024 on July 31 • Our Integrated Report 2024, meticulously crafted with carefully selected key information, tells the story of our commitment to maximizing EPS both in the short and long term by leveraging the strengths of our Asset Assembler model • The R

  11. Slide 11: Supplemental Material

    Supplemental Material 1. FY2024 2Q Results: Highlights … P.12 2. FY2024 2Q Results: By Segment … P.15 3. FY2024 1H Results … P.25 (Appendix) Reference Data

  12. Slide 12: FY2024 2Q Results: Highlights

    1. FY2024 2Q Results: Highlights 12

  13. Slide 13: Highlights (Consolidated)

    1-1. Highlights (Consolidated) (Billion yen) Results (Tanshin) Results (Non-GAAP) Key one-off factors FY2023 FY2024 YoY FY2023 FY2024 YoY YoY (the difference between Tanshin and Non-GAAP excluding FX impact) *Please refer to “Breakdown of Adjustments” in the Reference Data section in the appendix 2Q

  14. Slide 14: Highlights (by Segment)

    1-2. Highlights (by Segment) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 2Q 2Q (％) 2Q 2Q (Amount) (％) Revenue 50.3 50.8 1.0% 50.3 50.2 -0.1 -0.2% Japan Operating profit 5.3 5.3 0.4% 5.3 5.2 -0.1 -1.6% Revenue 194.9 242.0 24.2% 194.6 210.6 16.1 8.3% NIPS

  15. Slide 15: FY2024 2Q Results: By Segment

    2. FY2024 2Q Results: By Segment 15

  16. Slide 16: Revenue and Operating Profit Analysis

    2-1. Revenue and Operating Profit Analysis (Billion yen) Paint and Coatings Business * Revenue Non-GAAP basis +5.4% (+19.6) Tanshin basis +19.3% (+70.1) Operating Profit Non-GAAP basis +3.2 *Products included in the Paint and Coatings Business such as semi-finished products and fine chemicals with u

  17. Slide 17: Japan

    2-2. Japan (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 2Q 2Q (％) 2Q 2Q (Amount) (％) Automotive coatings 10.0 9.2 -8.0% 10.0 9.2 -0.8 -8.0% Decorative paints 12.7 13.0 2.3% 12.7 13.0 0.3 2.3% Key one-off factors (the difference between Tanshin and Non-GA

  18. Slide 18: NIPSEA China

    2-3. NIPSEA China (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 2Q 2Q (％) 2Q 2Q (Amount) (％) Automotive coatings 12.8 14.0 9.3% 12.8 12.6 -0.2 -1.2% Key one-off factors Decorative paints 109.5 128.3 17.2% 109.3 115.7 6.4 5.9% (the difference between Tansh

  19. Slide 19: NIPSEA Except China

    2-4. NIPSEA Except China*1 (Billion yen) Results (Tanshin) Results (Non-GAAP) Key one-off factors (the difference between Tanshin and Non-GAAP excluding FX impact) Figures are adjusted for FY2023 FY2024 YoY FY2023 FY2024 YoY YoY *Please refer to “Breakdown of Adjustments” in the Reference Data secti

  20. Slide 20: 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 2Q 2Q (％) 2Q 2Q (Amount) (％) Revenue 13.8 14.5 5.0% 13.8 13.9 0.1 0.9% PT Nipsea Operating profit 4.3 5.0 14.7% 4.3 4.7 0.4 9.5% (Indonesia) OP margin 31.3% 34

  21. Slide 21: DGL (Pacific)

    2-6. DGL (Pacific) (Billion yen) Results (Tanshin) Results (Non-GAAP) *1 FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 2Q 2Q (％) 2Q 2Q (Amount) (％) Decorative paints 26.5 32.6 23.1% 27.5 28.7 1.2 4.4% Industrial coatings 2.4 2.8 17.9% 2.4 2.5 0.1 3.9% Key one-off factors Revenue (the difference between Ta

  22. Slide 22: DGL (Europe)

    2-7. DGL (Europe) *1 (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 2Q 2Q (％) 2Q 2Q (Amount) (％) Key one-off factors (the difference between Tanshin and Non-GAAP excluding FX impact) Decorative paints 30.8 35.3 14.4% 31.8 31.4 -0.4 -1.3% *Please refer to “

  23. Slide 23: Americas

    2-8. Americas (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 2Q 2Q (％) 2Q 2Q (Amount) (％) Key one-off factors (the difference between Tanshin and Non-GAAP excluding FX impact) Automotive coatings 9.9 12.2 23.1% 9.9 10.7 0.8 8.6% *Please refer to “Breakdown

  24. Slide 24: 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

  25. Slide 25: FY2024 1H Results

    ((@)) NIPPON PAINT HOLDINGS CO, LTD. 3. FY2024 1H Results

  26. Slide 26: Highlights (Consolidated)

    3-1. Highlights (Consolidated) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 1H 1H (％) 1H 1H (Amount) (％) Revenue 692.9 817.1 17.9% 692.5 747.0 54.6 7.9% Operating profit 83.7 94.5 12.8% 76.3 84.9 8.6 11.3% OP margin 12.1% 11.6% -0.5pp 11.0% 11.4% - 0.3pp

  27. Slide 27: Highlights (by Segment)

    3-2. Highlights (by Segment) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 1H 1H (％) 1H 1H (Amount) (％) Revenue 97.3 97.3 -0.0% 97.3 96.3 -1.0 -1.0% Japan Operating profit 8.0 9.0 13.8% 7.9 8.9 1.0 12.3% Revenue 372.9 458.3 22.9% 372.4 421.2 48.8 13.1% NI

  28. Slide 28: Revenue and Operating Profit Analysis

    3-3. Revenue and Operating Profit Analysis (Billion yen) Paint and Coatings Business * Revenue Non-GAAP basis +7.9% (+54.6) Tanshin basis +17.9% (+124.2) Operating Profit Non-GAAP basis +8.6 28 *Products included in the Paint and Coatings Business such as semi-finished products and fine chemicals wi

  29. Slide 29: Japan & NIPSEA China

    3-4. Japan & NIPSEA China (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 1H 1H (％) 1H 1H (Amount) (％) Automotive coatings 20.4 18.5 -9.5% 20.4 18.5 -1.9 -9.5% Decorative paints 23.8 23.7 -0.5% 23.8 23.7 -0.1 -0.5% Industrial coatings 19.1 19.3 0.7% 19.1 19

  30. Slide 30: NIPSEA Except China, PT Nipsea & Betek Boya

    3-5. NIPSEA Except China & PT Nipsea (Indonesia) & Betek Boya (Türkiye) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 1H 1H (％) 1H 1H (Amount) (％) NIPSEA Revenue 135.7 177.6 30.9% 135.7 164.1 28.4 20.9% Except China *1 Operating profit 23.0 28.6 24.2% 23.

  31. Slide 31: DGL (Pacific) & DGL (Europe)

    3-6. DGL (Pacific) & DGL (Europe) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 1H 1H (％) 1H 1H (Amount) (％) Decorative paints 53.3 62.7 17.7% 55.2 56.7 1.5 2.7% DGL Revenue Industrial coatings 4.4 5.3 19.6% 4.4 4.8 0.4 8.2% Adjacencies business 45.5 51.4

  32. Slide 32: Americas

    3-7. Americas (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 1H 1H (％) 1H 1H (Amount) (％) Automotive coatings 19.1 23.9 25.3% 19.1 21.1 2.0 10.5% Decorative paints 32.1 37.9 18.3% 32.1 33.6 1.6 4.9% Revenue Americas Fine chemicals 0.8 1.2 50.4% 0.8 1.1 0.3

  33. Slide 33: 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

  34. Slide 34: Reference Data

    FY2024 2Q Financial Results Presentation Material Reference Data August 8, 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 DuluxG

  35. Slide 35: 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 2Q 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 4

  36. Slide 36: Revenue & Operating Profit Transition by Segment (Japan)

    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

  37. Slide 37: 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

  38. Slide 38: 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 2Q 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 93.1 105.4 DuluxGr

  39. Slide 39: Breakdown of Adjustments (2Q) – Japan and DuluxGroup

    4. Breakdown of Adjustments (FY2023 2Q vs. FY2024 2Q) FY2023 2Q FY2024 2Q 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

  40. Slide 40: Breakdown of Adjustments (2Q) – NIPSEA

    4. Breakdown of Adjustments (FY2023 2Q vs. FY2024 2Q) FY2023 2Q FY2024 2Q 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

  41. Slide 41: Breakdown of Adjustments (1H) – Japan and DuluxGroup

    5. Breakdown of Adjustments (FY2023 1H vs. FY2024 1H) FY2023 1H FY2024 1H 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

  42. Slide 42: Breakdown of Adjustments (1H) – NIPSEA

    5. Breakdown of Adjustments (FY2023 1H vs. FY2024 1H) FY2023 1H FY2024 1H 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

Nippon Paint Hldgs — Q2 2024 Earnings Presentation on 6ix