Nippon Paint Holdings Co., Ltd. · TSE:4612
Nippon Paint — Investor Presentation (May 2016)
25 slides from Nippon Paint's investor presentation, May 23, 2016
Slide 1: FY2016 Business Briefing for Investors: To be a Global Paint Major
Nippon Paint Holdings Co., Ltd. FY2016 Business Briefing for Investors “To be a Global Paint Major” May 23, 2016 Representative Director and President Tetsushi Tado
Slide 2: Three points for FY2016
Three points for FY2016 1. Aiming at achieving “increased sales and profit” in Japan, China and the U.S. in FY2016 as well 2. Aiming at building and expanding the Company’s operating base in the global market 3. Aiming at attaining both “growth investment” and “shareholder return” Achieving a payout
Slide 3: INDEX
INDEX 1. Positioning of FY2016 ----------------- 4 2. Business expansion measures and ----------------- 5 the state of alliances 3. Unification of accounting terms ----------------- 6 4. 2016 plan ----------------- 7 5. Business expansion measures ----------------- 12 6. The Power of Colours -------
Slide 4: Positioning of FY2016
Positioning of FY2016 Year of “ground leveling” for achieving the medium-term management plan “Future Pull” Future goal = Global Paint Major ↑ 2017 Goal in three years which is set from the viewpoint of the future goal = the medium-term management plan ↑ 2016 Ground leveling for achieving the future
Slide 5: Business expansion measures and the state of alliances
Business expansion measures and the state of alliances Continuance of the establishment and expansion of operation bases in growth markets and strategic regions Central and Operations Japan China Asia Europe Theme Status South America Acquired 51% in April 2015 Acquisition of Germany’s Bollig &K
Slide 6: Unification of accounting terms
Unification of accounting terms Book closing date for domestic business: March 31 → December 31 ・The 191st consolidated accounting term (FY2016) ✓Domestic consolidated subsidiaries: 9 months (from April 1, 2016 to December 31, 2016) ✓Overseas consolidated subsidiaries: 12 months (from January 1, 201
Slide 7: 2016 plan
2016 plan Continuance of growth based on the two wheels of increased sales and enhanced earning power 2015 actual 2016 plan 2016 plan Reference 参考値 (12 months) (based on 2016 exchange rate) (based on 2015 exchange rate) Full-year 12 month basis Year-on-year 12 month basis Year-on-year Sales (in 100
Slide 8: 2016 plan (Region)
2016 plan (Region) Continuance of growth led by Japan and Asia regions (in 100 million yen) 2015 actual 2016 plan 2016 plan Reference (12 months) (based on 2016 exchange rate) (based on 2015 exchange rate) Full-year 12 month basis Year-on-year 12 month basis Year-on-year Japan Sales 1,743 1,845 +103
Slide 9: 2016 plan (Sales by region)
2016 plan (Sales by region) Continuance of growth led by Japan and Asia regions (in 100 million yen) 6000 24 (+31.7%) (+7.5%) (+8.4%) Others Americas (+22.4%) (5,847) 103 (+5.8%) New NIPSEA (+9.1%) Foreign Old NEPSEA exchange effects Japan +14.3 billion yen *(Figures in brackets represent those base
Slide 10: 2016 plan (Sales by Business Fields)
2016 plan (Sales by Business Fields) Continuance of growth led by expanded operations for automobiles and general purposes (in 100 million yen) 2015 actual 2016 plan 2016 plan Reference (12 months) (based on 2016 exchange rate) (based on 2015 exchange rate) 12 month 12 month Full-year Year-on-year Y
Slide 11: 2016 plan (Sales by Business Fields)
2016 plan (Sales by Business Fields) Continuance of growth led by expanded operations for automobiles and general purposes (in 100 million yen) 6000 50 (+23.8%) (+7.8%) [(3.1%)] (+2.5%) [(10.6%)] (+10.0%) For For other Surface Others For (+7.4%) vehicles purposes treatment vessels For industrial pur
Slide 12: Business expansion measures in Japan
Business expansion measures in Japan Business expansion is planned although domestic demand is shrinking Paint business for general purposes Paint business for automobiles Expansion of share among strategic distributors Share expansion by acquiring new colors Expansion of retail sales by int
Slide 13: Business expansion measures in Asia (China)
Business expansion measures in Asia (China) Continuance of growth through enhanced “new life” services with general purpose products (DIY) Baotou, フフホト 2011-2014: New stores 44 cities 2015: New stores 17 cities 太原 2016 (first 5 months): 西安 ハルピン New stores 14 cities General purpose products / Lanzh
Slide 14: Business expansion measures in Asia (China)
Business expansion measures in Asia (China) General purpose products: Continuance of business expansion in 4 regions Central part: 4 provinces and 1 city Northern part: 8 provinces and 2 cities Southern part: 7 provinces Western part: Heilongjiang 9 provinces and 1 city Jilin Liaoning Xinjiang Gansu
Slide 15: Business expansion measures in Asia (China): capital investment plan
Business expansion measures in Asia (China) Capital investment plan (2015 → end of 2018) New capital investment: Adapted to environmental regulations / enhanced production capability Heilongjiang Jilin Xinjiang Liaoning Hebei Gansu Inner Mongolia Shanxi Qinghai Ningxia Shaanxi Shandong ￥ 河南 Jiangs
Slide 16: Business expansion measures in Asia (China)
Business expansion measures in Asia (China) Sales growth rates of the three main businesses: Higher than market growth rates 20142015 20152016 20142015 20152016 20142015 20152016 Sales growth rates Market growth rates 16
Slide 17: Business expansion measures in Asia (India)
Business expansion measures in Asia (India) Expansion of areas of alliance with Berger Paints, the second largest manufacturer in India Integration of automobile paint business into in BNB Coatings as JV Aiming at selling products to local plants of Japanese and Western car manufacturers Size
Slide 18: Business expansion measures in the Americas (Mexico)
Business expansion measures in the Americas (Mexico) Automotive paint plant: expansion of production capacity Expansion of existing plant, establishment of a new water-thinned paint plant Aiming at selling products to local plants of Japanese and Western car manufacturers Size of the Mexican a
Slide 19: Business expansion measures / global (vessel paint business)
Business expansion measures / global (vessel paint business) Nippon Paint Marine Coatings Co., Ltd.: Focusing on the improvement of presence in the global market Size of the global market: Business expansion based on strategic products Annual sales of 600 billion yen or more by the [1] Ultra f
Slide 20: Alliances in Europe and Latin America (vessel paint)
Business expansion measures / global (vessel paint business) Acceleration of business deployment through alliances in Europe and Latin America Status of strategic alliances Germany: Conclusion of a JV agreement with Wilckens → Nippon Paint Marine (Europe), a joint venture distributor, will be esta
Slide 21: Business expansion measures / financing activities
Business expansion measures / financing activities Cash flow from solid revenue base → Growth investment and shareholder return Fund Cash flow procurement from operating activities The debt-to-EBITDA ratio will be Aiming at achieving cash flow of approximately 1.5 200 billion yen over three years Gr
Slide 22: Corporate governance
Corporate governance Supervision of expanding growth based on global business expansion measures Improvement of effectiveness of the Board of Directors Members of the Board of Directors: 5 Directors and 2 Independent Outside Directors (proposal presented to the Ordinary General Meeting of Shareh
Slide 23: The Power of Colours
The Power of Colours Continuance of activities to spread the use of rich paint colors and exciting experiences CSR activities in China ROOMBLOOM Cooperation in activities to scrub Exhibition at the chemical off graffiti experiment seminar for children 23
Slide 24: To be a Global Paint Major
To be a Global Paint Major (Future) Will lead the “Global Paint Major” world market Our coating and related businesses will have Expanding growth attained a leading position in 2020 - each respective global (Long-term) region and formed the basis 2017 for growth. Will have (Medium-term) Doing the gr
Slide 25: Nippon Paint Holdings Co., Ltd.
Nippon Paint Holdings Co., Ltd. This material was prepared by the Company based on information available when it was prepared and therefore includes risks and uncertainties. Therefore, the actual performance in the future may be different from expectations expressed in this material. Please understa
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