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

Nippon Paint — H1 FY2016 Earnings Presentation

25 slides from Nippon Paint's earnings presentation, Nov 17, 2016

  1. Slide 1: Presentation for Institutional Investors (FY16 1st Half)

    Nippon Paint Holdings Co., Ltd. Presentation for Institutional Investors (FY16 1st Half) November 17, 2016 Nippon Paint Holdings Co., Ltd. Tetsushi Tado, President & CEO

  2. Slide 2: Table of Contents

    Table of Contents 1.Financial Results and Forecast for Full Year ・・・・・・・・1 2. Presence in Asian Markets ・・・・・・・・4 3. Direction of Business Expansion ・・・・・・・・8 2

  3. Slide 3: Financial Results

    Financial Results Top-line : substantially increased (excl. FX impacts) OP Margin : improved by raw material cost reduction initiatives, etc. Rounded off to the first decimal place (the same shall apply hereafter) (100 million yen) Results GAP Breakdown Impact of FY16 FY15 Gap Actual gap Exchange ra

  4. Slide 4: Forecast for Full Year (P/L, Japan 9-month basis)

    Forecast for Full Year(P/L, Japan 9-month basis) Operating income margin achieved ahead of Medium-term Management Plan (100 million yen) FY16 Revised plan Initial plan Gap Actual gap Net sales 4,670 5,000 -330 -106 Operating income 700 710 -10 27 Operating income margin 15.0% 14.2% 0.8pt Breakdown o

  5. Slide 5: Forecast for Full Year (P/L by region, Japan 9-month basis)

    Forecast for Full Year(P/L by region, Japan 9-month basis) Keep achieving of growth in the overseas segment on an actual basis. (100 million yen) FY16 Breakdown Revised plan Initial plan Gap Actual gap Japan Net sales 1,300 1,345 -45 -45 Operating income *1 236 219 17 17 Asia Net sales 2,910 3,179 -

  6. Slide 6: Table of Contents

    Table of Contents 1.Financial Results and Forecast for Full Year ・・・・・・・・1 2. Presence in Asian Markets ・・・・・・・・4 3. Direction of Business Expansion ・・・・・・・・8 6

  7. Slide 7: Vision of Asian Business

    Vision of Asian Business Our Vision ? gs company v i4

  8. Slide 8: Presence in Asian Markets

    Presence in Asian Markets keep expanding our business in Asian each countries since 1962 Singapore Thailand Malaysia Hong Kong India Pakistan 1962 1967 1967 1970 2006 2007 Indonesia Philippines China Vietnam Bangladesh Sri Lanka 1969 1976 1992 1994 2011 2012 The years refer to the year of foundation

  9. Slide 9: Presence in Asian Markets

    Presence in Asian Markets ✓ Developing business with 81 offices in 15 countries and regions ✓ 1.1 million tons of paints annually (Reference: Total annual paint production in Japan amounts to 1.6 million tons.) * Figures to the right of country/region names indicate the total number of production ba

  10. Slide 10: Presence in Asian Markets

    Presence in Asian Markets ✓ Keep increasing by focusing on “decorative” and “automotive” ✓ Expand dominant strategy in each country growth market <Market size of each country*1 and region our group entered> <Main regions we obtained high market share*2> Segment Market size Thailand Thailand Vietnam

  11. Slide 11: Table of Contents

    Table of Contents 1.Financial Results and Forecast for Full Year ・・・・・・・・1 2. Presence in Asian Markets ・・・・・・・・4 3. Direction of Business Expansion ・・・・・・・・8 11

  12. Slide 12: Direction of further growth

    Direction of further growth ✓ Complement and reinforcement of peripheral of “decorative” in China ✓ Establish "the second pillars” in Americas and EMEA as a growth foundation, following China Target Target Priority

  13. Slide 13: Nippon Paint Holdings Co., Ltd.

    Nippon Paint Holdings Co., Ltd. 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 Paint Holdings Co., Ltd. and the Nippon Paint Holdings

  14. Slide 14: Supplements

    <Supplements> * Significant changes exist in the financial results for FY2015 or later, due to the Group consolidating its equity-method affiliates in Asia in December 2014. * Figures for FY2016 plan (both Japan and overseas) are on a 9-month basis.

  15. Slide 15: P/L

    P/L FY2012 FY2013 FY2014 FY2015 FY2016 ※2 H1 Full Year H1 Full Year H1 Full Year H1 Full Year H1 Revised plan Net sales 1,193.3 2,333.8 1,269.0 2,605.8 1,272.5 2,605.9 2,632.7 5,357.5 2,544.4 4,670 Gross income 413.6 820.4 462.1 936.4 456.2 925.5 1,073.7 2,233.4 1,103.7 - Operating income 135.5 258.

  16. Slide 16: Net Sales & Operating Income by Region

    Net Sales & Operating Income by Region FY2012 FY2013 FY2014 FY2015 FY2016 *4 1H Full Year 1H Full Year 1H Full Year 1H Full Year 1H Revised plan Japan Net sales 895.8 1,745.2 909.1 1,874.8 916.3 1,872.0 862.7 1,742.8 842.0 1,300 Operating income ※1 116.9 224.4 134.1 270.2 122.1 264.1 134.8 291.6 157

  17. Slide 17: Net Sales by Business

    Net Sales by Business (100 million yen) <Consolidated> FY2012 FY2013 FY2014 FY2015 FY2016 H1 Full Year H1 Full Year H1 Full Year H1 Full Year H1 Automotive coatings 414.7 812.9 457.4 925.1 450.9 933.5 657.5 1,387.6 701.0 Paint business Trade-use paints (decorative and heavy duty) 220.0 437.7 243.4 5

  18. Slide 18: B/S

    B/S <Assets> <Liabilities and net assets> (100 million yen) As of Mar 31, As of Mar 31, As of Mar 31, As of Mar 31, As of Sep 30, As of Mar As of Mar As of Mar As of Mar As of Sep 2013 2014 2015 2016 2016 31, 2013 31, 2014 31, 2015 31, 2016 30, 2016 Current assets 1,573 1,722 3,417 3,596 3,530 Curre

  19. Slide 19: Cash Flows

    Cash Flows (100 million yen) FY2012 FY2013 FY2014 FY2015 FY2016 H1 Full Year H1 Full Year H1 Full Year H1 Full Year H1 Cash flow from operating 101.8 318.5 75.5 269.2 145.8 344.2 137.1 631.0 351.7 activities Cash flow from investing -26.2 -69.2 -29.2 -71.7 -20.7 -869.7 -72.6 -53.1 -36.9 activities C

  20. Slide 20: Capital Expenditure, Depreciation, R&D Expenses, and Interest-Bearing Debts

    Capital Expenditure, Depreciation, R&D Expenses, and Interest-Bearing Debts (100 million yen) FY2012 FY2013 FY2014 FY2015 FY2016 １H Full Year １H Full Year １H Full Year １H Full Year １H Full-year plan * Property, plant and equipment 25.8 48.2 25.8 54.4 21.7 46.4 89.5 169.8 91.1 - Capital expenditures

  21. Slide 21: Main Indicators

    Main Indicators FY2012 FY2013 FY2014 FY2015 FY2016 １H Full Year １H Full Year １H Full Year １H Full Year １H ※1 ROE (%) - 13.5 - 18.1 - 9.7 - 6.3 - Capital equity ratio (%) 52.8 56.0 59.9 60.0 63.3 59.2 58.2 59.3 58 Ratio of ordinary income to total assets - 11.7 - 15.3 - 8.7 - 9.3 - (%) ※1 ※2 Payout r

  22. Slide 22: Number of Employees

    Number of Employees (Persons) FY2011 FY2012 FY2013 FY2014 FY2015 Nippon Paint 1,477 1,406 1,340 232 241 Subsidiaries in Japan 1,662 1,668 1,643 2,654 2,694 Subtotal in Japan 3,139 3,074 2,983 2,886 2,935 Overseas subsidiaries 2,623 2,814 2,772 12,894 13,563 Total 5,762 5,888 5,755 15,780 16,498 16

  23. Slide 23: Foreign Exchange Rates and Japan-produced Naphtha Prices

    Foreign Exchange Rates (Term Average) and Japan-produced Naphtha Prices FY2012 FY2013 FY2014 FY2015 FY2016 Ful l -yea r * 1H Full Year 1H Full Year 1H Full Year 1H Full Year 1H a s s umpti on Yen-US dollar rate 79.8 80.1 95.9 98.0 102.2 106.4 120.5 121.0 111.8 107.4 Yen-RMB rate 12.6 12.7 15.5 16.0

  24. Slide 24: Market Environments

    Market Environments <Paint Shipments and Production> (10,000 tons) FY2012 FY2013 FY2014 FY2015 FY2016 H1 Full Year H1 Full Year H1 Full Year H1 Full Year H1 Paint shipments (Japan) *1 87.0 171.5 85.7 175.4 84.6 171.4 86.6 175.6 86.8 Paint production (China) *2 1,272 699 1,528 771 1,648 779 1,710 836

  25. Slide 25: Nippon Paint Holdings Co., Ltd.

    Nippon Paint Holdings Co., Ltd. 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 Paint Holdings Co., Ltd. and the Nippon Paint Holdings

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