Nippon Paint Holdings Co., Ltd. · TSE:4612
Nippon Paint — Nippon Paint Hldgs — Q3 2024 Earnings Presentation
44 slides from Nippon Paint's earnings presentation, Nov 14, 2024
Slide 1: FY2024 3Q Financial Results Presentation Material
November 14, 2024 FY2024 3Q Financial Results Presentation Material FY2024 3Q Summary/Topics P.3 Supplemental Material P.13 1. FY2024 3Q Results: Highlights P.14 2. FY2024 3Q Results: By Segment P.17 4. FY2024 9M Results P.27 (Appendix) Reference Data
Slide 2: Supplementary Information
Supplementary Information Analysis of operating results In this document, we present our operating 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 • Th
Slide 3: FY2024 3Q Operating Results – Record Revenue, Second-Highest OP
1. FY2024 3Q Operating Results –Record Revenue Achieved with Second-Highest OP Attained ◆ Tanshin FY2024 3Q • Revenue rose by +3.2%, fueled by volume growth, particularly in the decorative business, along with contributions from new consolidations • Hyperinflationary accounting remained in effect in
Slide 4: FY2024 9M Operating Results – Record Revenue and Operating Profit
2. FY2024 9M Operating Results –Both Revenue and Operating Profit Reached Record Highs ◆ Tanshin FY2024 9M • Revenue rose by +12.6%, driven by volume growth, especially in the decorative business, along with expansion in the adjacencies business, FX impacts and new consolidations • Hyperinflationary
Slide 5: FY2024 Guidance (1)
3. FY2024 Guidance (1) –Outlook Unchanged; Record-High Earnings Expected (Billion yen) Tanshin Tanshin (For reference) FY2023 FY2024 FY2023 FY2024 YoY 4Q FY2024 FY2024 Feb. (%) 4Q Results Forecast Guidance Results 9M 4Q YoY (%) Actual Forecast Revenue 1,442.6 1,600.0 10.9% 356.7 c. +15% JPY/USD 151.
Slide 6: FY2024 Guidance (2)
3. FY2024 Guidance (2) (Billion yen) FY2023 results FY2024 forecast (In local currency) (Tanshin basis) Aug. forecast Latest forecast YoY YoY *1 YoY YoY *1 YoY (OP margin) Revenue OP margin (Revenue) (OP margin) (Revenue) (OP margin) vs Aug. forecast Segment total 201.5 9.5% c. ±0% → c. ±0% → Slight
Slide 7: FY2024 Guidance (3)
3. FY2024 Guidance (3) (Billion yen) FY2023 results FY2024 forecast (In local currency) (Tanshin basis) Aug. forecast Latest forecast YoY YoY * YoY YoY * YoY (OP margin) Revenue OP margin (Revenue) (OP margin) (Revenue) (OP margin) vs Aug. forecast Segment total 360.4 9.6% +5~10% → c. +5% → Inline D
Slide 8: Raw Material Market Conditions and Operational Impact
4. Raw Material Market Conditions and Operational Impact Despite price variations across regions and raw materials, significant fluctuation in the RMCC ratio not anticipated FY2024 3Q FY2024 4Q and beyond • Crude oil prices have fallen by 7% and naphtha spot prices by 6% since the end of June, • As
Slide 9: Market & Business Environment
5. Market & Business Environment DGL DGL Japan NIPSEA China Americas (Pacific) (Europe) Automotive FY2024 3Q Decorative TUC TUB Automotive FY2024 4Q (outlook) Decorative TUC TUB Automotive FY2024 (outlook) Decorative TUC TUB ■ Market (YoY) ■Business (vs. Market)* *Internal estimates Strong Weak Outp
Slide 10: Summary of Operating Results in Major Segments
6. Summary of Operating Results in Major Segments (Billion yen) Tanshin Non-GAAP FY2024 FY2024 Overview YoY YoY 3Q 3Q Higher revenue, driven by strong sales in the marine and other segments that offset the impacts of soft market conditions Revenue 52.4 +5.4% 52.1 +4.9% in the automotive, decorative,
Slide 11: Major Topics (1): IR Day 2024
7. Major Topics (1) “IR Day 2024” is scheduled for December 2 • Our first-ever “IR Day,” aimed at institutional investors, is set for Monday, December 2, from 13:00 to 16:40 JST Time Program Speaker Yuichiro Wakatsuki 13:00 - 13:10 Opening Remarks Director, Representative Executive Officer & Co-Pres
Slide 12: Major Topics (2): Acquisition of AOC
7. Major Topics (2) Acquisition of AOC, a global specialty formulator (announced on October 28) • Supported by its excellent business systems and strong cash flow generation from low capital expenditure requirements, AOC is expected to contribute an EPS increase of 15-17 yen annually starting in its
Slide 13: Supplemental Material
Supplemental Material 1. FY2024 3Q Results: Highlights … P.14 2. FY2024 3Q Results: By Segment … P.17 3. FY2024 9M Results … P.27 (Appendix) Reference Data
Slide 14: FY2024 3Q Results: Highlights
1. FY2024 3Q Results: Highlights 14
Slide 15: Highlights (Consolidated)
1-1. Highlights (Consolidated) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 3Q 3Q (％) 3Q 3Q (Amount) (％) Key one-off factors (the difference between Tanshin and Non-GAAP excluding FX impact) Revenue 393.0 405.6 3.2% 392.7 399.7 6.9 1.8% *Please refer to
Slide 16: Highlights (by Segment)
1-2. Highlights (by Segment) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 3Q 3Q (％) 3Q 3Q (Amount) (％) Revenue 49.7 52.4 5.4% 49.7 52.1 2.5 4.9% Japan Operating profit 4.5 4.9 7.0% 4.5 4.8 0.3 6.3% Revenue 219.0 222.8 1.7% 218.7 221.0 2.2 1.0% NIPSEA Ope
Slide 17: FY2024 3Q Results: By Segment
2. FY2024 3Q Results: By Segment 17
Slide 18: Revenue and Operating Profit Analysis
2-1. Revenue and Operating Profit Analysis (Billion yen) Paint and Coatings Business * Revenue Non-GAAP basis +1.8% (+6.9) Tanshin basis +3.2% (+12.7) Tanshin basis -0.6 Operating Profit Non-GAAP basis -6.2 *Products included in the Paint and Coatings Business such as semi-finished products and fine
Slide 19: Japan
2-2. Japan (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 3Q 3Q (％) 3Q 3Q (Amount) (％) Automotive coatings 10.5 10.3 -2.2% 10.5 10.3 -0.2 -2.2% Key one-off factors Decorative paints 12.0 11.8 -2.1% 12.0 11.8 -0.3 -2.1% (the difference between Tanshin and N
Slide 20: NIPSEA China
2-3. NIPSEA China (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 3Q 3Q (％) 3Q 3Q (Amount) (％) Key one-off factors (the difference between Tanshin and Non-GAAP excluding FX impact) Automotive coatings 13.1 13.1 -0.2% 13.1 12.7 -0.4 -2.8% *Please refer to “B
Slide 21: 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
Slide 22: 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 3Q 3Q (％) 3Q 3Q (Amount) (％) Revenue 14.7 15.7 6.9% 14.7 15.9 1.2 7.9% PT Nipsea Operating profit 4.7 4.8 3.1% 4.7 4.9 0.2 4.9% (Indonesia) OP margin 32.0% 30.
Slide 23: DGL (Pacific)
2-6. DGL (Pacific) Results (Tanshin) Results (Non-GAAP) *1 (Billion yen) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 3Q 3Q (％) 3Q 3Q (Amount) (％) Decorative paints 29.1 31.7 8.9% 30.2 30.3 0.2 0.5% Industrial coatings 2.6 2.9 13.0% 2.6 2.8 0.2 7.9% Key one-off factors Revenue (the difference between Tan
Slide 24: DGL (Europe)
2-7. DGL (Europe) (Billion yen) Results (Tanshin) Results (Non-GAAP)*1 FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 3Q 3Q (％) 3Q 3Q (Amount) (％) Decorative paints 28.8 30.5 6.1% 29.7 29.7 0.1 0.2% Key one-off factors (the difference between Tanshin and Non-GAAP excluding FX impact) Revenue Adjacencies bu
Slide 25: Americas
2-8. Americas (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 3Q 3Q (％) 3Q 3Q (Amount) (％) Key one-off factors (the difference between Tanshin and Non-GAAP excluding FX impact) Automotive coatings 10.5 10.5 0.2% 10.5 10.6 0.2 1.9% *Please refer to “Breakdow
Slide 26: 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 27: FY2024 9M Results
((@)) NIPPON PAINT HOLDINGS CO, LTD. 3. FY2024 9M Results
Slide 28: Highlights (Consolidated)
3-1. Highlights (Consolidated) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 9M 9M (％) 9M 9M (Amount) (％) Revenue 1,085.9 1,222.7 12.6% 1,085.2 1,146.7 61.5 5.7% Operating profit 131.6 141.8 7.7% 123.8 126.2 2.4 1.9% OP margin 12.1% 11.6% -0.5pp 11.4% 11.
Slide 29: Highlights (by Segment)
3-2. Highlights (by Segment) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 9M 9M (％) 9M 9M (Amount) (％) Revenue 147.0 149.6 1.8% 147.0 148.5 1.5 1.0% Japan Operating profit 12.5 13.9 11.3% 12.4 13.7 1.3 10.1% Revenue 591.8 681.1 15.1% 591.2 642.2 51.0 8.6
Slide 30: Revenue and Operating Profit Analysis
3-3. Revenue and Operating Profit Analysis (Billion yen) Paint and Coatings Business * Revenue Non-GAAP basis +5.7% (+61.5) Tanshin basis +12.6% (+136.9) Tanshin basis +10.1 Operating Profit Non-GAAP basis +2.4 30 *Products included in the Paint and Coatings Business such as semi-finished products a
Slide 31: Japan & NIPSEA China
3-4. Japan & NIPSEA China (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 9M 9M (％) 9M 9M (Amount) (％) Automotive coatings 30.9 28.7 -7.0% 30.9 28.7 -2.2 -7.0% Decorative paints 35.9 35.5 -1.0% 35.9 35.5 -0.4 -1.0% Industrial coatings 29.2 29.2 -0.1% 29.2 2
Slide 32: 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 NIPSEA Revenue 9M 218.8 9M 258.0 (％) 17.9% 9M 218.8 9M 246.6 (Amount) 27.9 (％) 12.7% Except China *1 Operating profit 36.7 42.5 15.8% 36.
Slide 33: DGL (Pacific) & DGL (Europe)
3-6. DGL (Pacific) & DGL (Europe) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 9M 9M (％) 9M 9M (Amount) (％) Decorative paints 82.3 94.3 14.6% 85.4 87.0 1.6 1.9% DGL Revenue Industrial coatings 7.0 8.2 17.2% 7.0 7.5 0.6 8.1% Adjacencies business 73.0 80.6
Slide 34: Americas
3-7. Americas (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 9M 9M (％) 9M 9M (Amount) (％) Automotive coatings 29.6 34.4 16.4% 29.6 31.7 2.2 7.4% Decorative paints 50.0 57.1 14.2% 50.0 52.6 2.6 5.1% Americas Revenue Fine chemicals 1.3 1.7 33.1% 1.3 1.6 0.3
Slide 35: Investor Relations Contact
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 36: Reference Data
FY2024 3Q Financial Results Presentation Material Reference Data November 14, 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 Dul
Slide 37: 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 3Q 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.
Slide 38: Revenue & Operating Profit Transition by Segment (Japan, DuluxGroup)
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 39: 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 40: 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 3Q 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 93.1 105.4 100.
Slide 41: Breakdown of Adjustments (3Q): Japan, DuluxGroup
4. Breakdown of Adjustments (FY2023 3Q vs. FY2024 3Q) FY2023 3Q FY2024 3Q 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 42: Breakdown of Adjustments (3Q): NIPSEA
4. Breakdown of Adjustments (FY2023 3Q vs. FY2024 3Q) FY2023 3Q FY2024 3Q 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 43: Breakdown of Adjustments (9M): Japan, DuluxGroup
5. Breakdown of Adjustments (FY2023 9M vs. FY2024 9M) FY2023 9M FY2024 9M 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 44: Breakdown of Adjustments (9M): NIPSEA
5. Breakdown of Adjustments (FY2023 9M vs. FY2024 9M) FY2023 9M FY2024 9M 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