Nippon Paint Holdings Co., Ltd. · TSE:4612
Nippon Paint — FY2019 Earnings Presentation
42 slides from Nippon Paint's earnings presentation, Feb 13, 2020
Slide 1: FY2019 4Q Financial Result Presentation Material
FY2019 4Q Financial Result Presentation Material February 13, 2020 Round off to the first decimal place (the same shall apply hereafter)
Slide 2: Contents
Contents 1. FY2019 4Q Highlights ・・・ P.5 2. FY2019 4Q Results (by Region) ・・・ P.8 3. FY2020 Forecast ・・・ P.17 4. Reference -(1) FY2019 Highlights ・・・ P.20 -(2) FY2019 Results (by Region) ・・・ P.24 -(3) Breakdown of the Adjustment Items ・・・ P.31 -(4) Financial Index ・・・ P.36 2
Slide 3: Major Changes regarding Disclosure Policy
Major Changes regarding Disclosure Policy ①Quarterly financials to be disclosed. Accrual basis also disclosed for reference ②NIPSEA China※ financial information to be separately disclosed within Asia segment ※Only refers to China operations within NIPSEA and does not include non-NIPSEA China ③Both R
Slide 4: Today's Summary
Today’s Summary Revenue increased 3.5% and operating profit increased 7.0% YoY Strong growth in revenue (+15.1% YoY) and operating profit (+40.6% YoY) at NIPSEA China as the decorative paints business continued to perform well ・Strong growth from project segment with 42% YoY Decline in raw material
Slide 5: 1. FY2019 4Q Highlights
«ey NIPPON PAINT HOLDINGS CO.,LTD. 1. F¥Y2019 4Q Highlights NIPPON PAINT HOLDINGS GROUP
Slide 6: 1-2. FY2019 4Q Highlights
1-2. FY2019 4Q Highlights (Billion yen) Results(Non-GAAP) Results(Tanshin) (excluding the adjustment items' effect) FY2018 FY2019 YoY FY2018 FY2019 YoY YoY 4Q 4Q (％) 4Q 4Q (Amount) (％) Revenue 153.2 196.9 28.5% 153.1 158.5 5.4 3.5% Operating profit 19.7 11.6 -41.3% 17.9 19.2 1.3 7.0% OP margin 12.9%
Slide 7: 1-3. Revenue & Operating Profit by Region (4Q)
1-3. Revenue & Operating Profit by Region (4Q) (Billion yen) Results(Tanshin) Results(Non-GAAP) (excluding the adjustment items' effect) FY2018 FY2019 YoY 2018年 2019年 YoY YoY 4Q 4Q (％) 4Q 4Q (Amount) (％) Revenue 49.3 46.1 -6.5% 49.3 46.1 -3.2 -6.5% Japan Operating profit※ 7.6 4.2 -45.4% 7.6 5.2 -2.4
Slide 8: 2. FY2019 4Q Results (by Region)
2. FY2019 4Q Results (by Region) 8
Slide 9: 2-1. Market & Business Environment (4Q)
2-1. Market & Business Environment(4Q) Japan Asia (China) Oceania Americas Automotive coatings DIY Project Decorative paints ■ Market(YoY) ■ Business(vs. Market※) ※Own estimation Strong Weak Outperform Inline Underperform ✓Automotive： Automobile production volume in Japan fell below the prior-year l
Slide 10: 2-2. Operating Profit Gap Analysis (Based on Non-GAAP Results)
2-2. Operating Profit Gap Analysis (Based on Non-GAAP Results) (Billion yen) Gap(Non-GAAP) ＋1.3 ✓Japan： Lower earnings because of weakness in the automotive, decorative and industrial market sectors, higher personnel expenses and other reasons ✓Asia： Increase in earnings due to the strong performanc
Slide 11: 2-3. Result Analysis by Region (Japan)
2-3. Result Analysis by Region (Japan) (Billion yen) Results(Tanshin) Results(Non-GAAP) (excluding the adjustment items' effect) FY2018 FY2019 YoY FY2018 FY2019 YoY YoY 4Q 4Q (％) 4Q 4Q (Amount) (％) Automotive 12.1 10.2 -15.5% 12.1 10.2 -1.9 -15.5% coatings Decorative 13.0 11.8 -9.1% 13.0 11.8 -1.2 -
Slide 12: 2-4. Result Analysis by Region (NIPSEA China)
2-4. Result Analysis by Region (NIPSEA China) (Billion yen) Results(Tanshin) Results(Non-GAAP) (excluding the adjustment items' effect) FY2018 FY2019 YoY FY2018 FY2019 YoY YoY 4Q 4Q (％) 4Q 4Q (Amount) (％) Automotive 9.4 9.1 -4.1% 9.4 9.7 0.3 2.9% coatings Decorative 40.3 47.7 18.3% 40.7 48.8 8.1 19.
Slide 13: 2-5. Result Analysis by Region (Asia Excepting NIPSEA China)
2-5. Result Analysis by Region (Asia Excepting for NIPSEA China) (Billion yen) Results(Non-GAAP) Results(Tanshin) (excluding the adjustment items' effect) FY2018 FY2019 YoY FY2018 FY2019 YoY YoY 4Q 4Q (％) 4Q 4Q (Amount) (％) Revenue 26.4 27.0 2.3% 26.4 27.1 0.8 2.9% Operating profit 4.1 2.4 -41.6% 4.
Slide 14: 2-6. Result Analysis by Region (Oceania)
2-6. Result Analysis by Region (Oceania) (Billion yen) Results(Tanshin) Results(Non-GAAP) (excluding the adjustment items' effect) FY2018 FY2019 YoY FY2018 FY2019 YoY YoY 4Q 4Q (％) 4Q 4Q (Amount) (％) Decorative - 18.0 - - - - - paints Industrial - 1.5 - - - - - coatings Revenue Paint related - 14.9
Slide 15: 2-7. Result Analysis by Region (Americas)
2-7. Result Analysis by Region (Americas) Results(Tanshin) Results(Non-GAAP) (Billion yen) (excluding the adjustment items' effect) FY2018 FY2019 YoY FY2018 FY2019 YoY YoY 4Q 4Q (％) 4Q 4Q (Amount) (％) Automotive 6.7 6.2 -8.3% 6.7 6.3 -0.4 -5.7% coatings Decorative 10.9 10.7 -2.4% 10.9 11.0 0.1 0.7%
Slide 16: 2-8. Result Analysis by Region (Others)
2-8. Result Analysis by Region (Others) (Billion yen) Results(Tanshin) Results(Non-GAAP) (excluding the adjustment items' effect) FY2018 FY2019 YoY FY2018 FY2019 YoY YoY 4Q 4Q (％) 4Q 4Q (Amount) (％) Automotive 3.3 3.0 -10.2% 3.3 3.1 -0.3 -7.7% coatings Decorative - 4.2 - - - - - paints Industrial 0.
Slide 17: 3. FY2020 Forecast
«ey NIPPON PAINT HOLDINGS CO.,LTD. 3. FY2020 Forecast NIPPON PAINT HOLDINGS GROUP 17
Slide 18: 3. FY2020 Forecast (1)
3． FY2020 Forecast (1) We will withhold the announcement of FY2020 forecast given the continued evolvement of novel coronavirus outbreak whereby the effect at this point is not quantifiable in a reasonable manner ・No employee within NPHD Group affected by virus to date. We place highest priority in
Slide 19: 3. FY2020 Forecast (2)
3． FY2020 Forecast (2) Current view regarding novel coronavirus impact on FY2020 financials ・Close correlation with timing of peak out. Effect on 1Q inevitable but possible to recover within fiscal year ・For China decorative paints business, DIY segment may be more affected ・For China automotive and
Slide 20: 4-(1). Reference: FY2019 Highlights
4-(1). Reference: FY2019 Highlights 20
Slide 21: 4-(1)-1. FY2019 Highlights
4-(1)-1. FY2019 Highlights (Billion yen) Results(Non-GAAP) Results(Tanshin) (excluding the adjustment items' effect) YoY YoY YoY FY2018 FY2019 FY2018 FY2019 (％) (Amount) (％) Revenue 627.7 692.0 10.3% 627.6 646.2 18.6 3.0% Operating profit 86.5 78.1 -9.8% 77.1 80.8 3.7 4.8% OP margin 13.8% 11.3% -2.5
Slide 22: 4-(1)-2. Operating Profit Gap Analysis (Based on Non-GAAP Results)
4-(1)-2. Operating Profit Gap Analysis (Based on Non-GAAP Results) (Billion yen) ✓Japan： Earnings decreased mainly because of higher personnel expenses and other reasons; earnings in the decorative paints and industrial coatings businesses remained steady ✓Asia： Earnings were much higher due to the
Slide 23: 4-(1)-3. Revenue & Operating Profit by Region
4-(1)-3. Revenue & Operating Profit by Region (Billion yen) Results(Tanshin) Results(Non-GAAP) (excluding the adjustment items' effect) YoY YoY YoY FY2018 FY2019 2018年 2019年 (％) (Amount) (％) Revenue 182.8 182.6 -0.1% 182.8 182.6 -0.2 -0.1% Japan Operating profit※1 29.6 23.4 -21.0% 27.4 24.4 -2.9 -10
Slide 24: 4-(2). Reference: FY2019 Results (by Region)
4-(2). Reference: FY2019 Results (by Region) 24
Slide 25: 4-(2)-1. Result Analysis by Region (Japan)
4-(2)-1. Result Analysis by Region (Japan) (Billion yen) Results(Tanshin) Results(Non-GAAP) (excluding the adjustment items' effect) YoY YoY YoY FY2018 FY2019 FY2018 FY2019 (％) (Amount) (％) Automotive 45.3 44.9 -0.8% 45.3 44.9 -0.4 -0.8% coatings Decorative 46.8 48.2 3.0% 46.8 48.2 1.4 3.0% paints I
Slide 26: 4-(2)-2. Result Analysis by Region (NIPSEA China)
4-(2)-2. Result Analysis by Region(NIPSEA China) (Billion yen) Results(Tanshin) Results(Non-GAAP) (excluding the adjustment items' effect) YoY YoY YoY FY2018 FY2019 FY2018 FY2019 (％) (Amount) (％) Automotive 39.4 33.8 -14.2% 39.0 35.6 -3.4 -8.7% coatings Decorative 189.2 202.7 7.1% 190.3 212.9 22.5 1
Slide 27: 4-(2)-3. Result Analysis by Region (Asia Excepting NIPSEA China)
4-(2)-3. Result Analysis by Region (Asia Excepting for NIPSEA China) (Billion yen) Results(Non-GAAP) Results(Tanshin) (excluding the adjustment items' effect) YoY YoY YoY FY2018 FY2019 FY2018 FY2019 (％) (Amount) (％) Revenue 104.1 101.7 -2.2% 104.1 103.8 -0.3 -0.3% Operating profit 14.0 10.7 -23.7% 1
Slide 28: 4-(2)-4. Result Analysis by Region (Oceania)
4-(2)-4. Result Analysis by Region (Oceania) (Billion yen) Results(Tanshin) Results(Non-GAAP) (excluding the adjustment items' effect) YoY YoY YoY FY2018 FY2019 FY2018 FY2019 (％) (Amount) (％) Decorative - 24.6 - - - - - paints Industrial - 2.0 - - - - - coatings Revenue Paint related - 21.0 - - - -
Slide 29: 4-(2)-5. Result Analysis by Region (Americas)
4-(2)-5. Result Analysis by Region (Americas) (Billion yen) Results(Tanshin) Results(Non-GAAP) (excluding the adjustment items' effect) YoY YoY YoY FY2018 FY2019 FY2018 FY2019 (％) (Amount) (％) Automotive 27.3 25.9 -5.1% 27.3 26.2 -1.1 -4.0% coatings Decorative 44.6 45.4 1.7% 44.6 45.8 1.2 2.7% paint
Slide 30: 4-(2)-6. Result Analysis by Region (Others)
4-(2)-6. Result Analysis by Region (Others) (Billion yen) Results(Tanshin) Results(Non-GAAP) (excluding the adjustment items' effect) YoY YoY YoY FY2018 FY2019 FY2018 FY2019 (％) (Amount) (％) Automotive 12.8 11.8 -8.3% 12.8 12.7 -0.2 -1.5% coatings Decorative - 8.8 - - - - - paints Industrial 0.3 1.8
Slide 31: 4-(3). Reference: Breakdown of the Adjustment Items
4-（3）. Reference: Breakdown of the Adjustment Items 31
Slide 32: 4-(3)-1. Breakdown of the Adjustment Items (4Q)
4-(3)-1. Breakdown of the Adjustment Items (4Q) (Billion yen) FY2018 4Ｑ FY2019 4Q Subsidy, M&A New Subsidy, M&A New Impair- Impair- FX Insurance, related acqui- Total FX Insurance, related acqui- Total ment loss ment loss etc. cost sitions etc. cost sitions Automotive - - - - - - - - - - - - Decorat
Slide 33: 4-(3)-2. Breakdown of the Adjustment Items (4Q)
4-(3)-2. Breakdown of the Adjustment Items (4Q) (Billion yen) FY2018 4Ｑ FY2019 4Q Subsidy, M&A New Subsidy, M&A New Impair- Impair- FX Insurance, related acqui- Total FX Insurance, related acqui- Total ment loss ment loss etc. cost sitions etc. cost sitions Automotive 0.1 - - - - 0.1 -0.3 - - - - -0
Slide 34: 4-(3)-3. Breakdown of the Adjustment Items (Full Year)
4-(3)-3. Breakdown of the Adjustment Items (Full Year) (Billion yen) FY2018 FY2019 Subsidy, M&A New Subsidy, M&A New Impair- Impair- FX Insurance, related acqui- Total FX Insurance, related acqui- Total ment loss ment loss etc. cost sitions etc. cost sitions Automotive - - - - - - - - - - - - Decora
Slide 35: 4-(3)-4. Breakdown of the Adjustment Items (Full Year)
4-(3)-4. Breakdown of the Adjustment Items (Full Year) (Billion yen) FY2018 FY2019 Subsidy, M&A New Subsidy, M&A New Impair- Impair- FX Insurance, related acqui- Total FX Insurance, related acqui- Total ment loss ment loss etc. cost sitions etc. cost sitions Automotive 0.4 - - - - 0.4 -2.2 - - - - -
Slide 36: 4-(4). Reference: Financial Index
4-（4）. Reference: Financial Index 36
Slide 37: 4-(4)-1. Revenue & Operating Profit Transition by Region 1
4-(4)-1. Revenue & Operating Profit Transition by Region① (Billion yen) FY2017 (J-GAAP) FY2018(IFRS) FY2019(IFRS) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Automotive 10.8 10.3 10.9 11.5 11.5 11.1 10.6 12.1 11.9 11.4 11.3 10.2 Decorative 9.4 11.0 10.1 10.9 10.6 12.0 11.2 13.0 11.0 12.8 12.6 11.8 Industria
Slide 38: 4-(4)-2. Revenue & Operating Profit Transition by Region 2
4-(4)-2. Revenue & Operating Profit Transition by Region② (Billion yen) FY2017 (J-GAAP) FY2018(IFRS) FY2019(IFRS) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Automotive 15.7 15.5 15.8 17.7 18.5 19.6 17.6 18.5 16.5 17.2 15.9 17.5 Decorative 51.2 58.2 66.1 54.4 54.6 62.2 64.0 50.2 54.3 65.6 65.3 58.5 Industri
Slide 39: 4-(4)-3. Statement of Financial Position
4-(4)-3. Statement of Financial Position (Billion yen) FY2018 FY2019 Increase FY2018 FY2019 Increase Assets As of As of / Liabilities and equity As of As of / Dis. 31 Dis. 31 Decrease Dis. 31 Dis. 31 Decrease Total current assets 444.2 507.2 63.0 Total liabilities 306.4 790.7 484.3 Cash and cash equ
Slide 40: 4-(4)-4. Capital Expenditure, Depreciation, R&D Expenses, etc.
4-(4)-4. Capital Expenditure, Depreciation, R&D Expenses, etc. ＜Capital Expenditure, Depreciation, R&D Expenses, etc＞ （Billion Yen） FY2018 FY2019 Result Result Property, plant and 19.8 32.6 equipment Capital Intangible assets 2.6 2.7 expenditure Total 22.5 35.3 Property, plant and 11.4 18.3 equipmen
Slide 41: 4-(4)-5. FX Rates & Market Conditions
4-(4)-5. FX Rates & Market Conditions <Exchange rate for P/L (average rate)> <Exchange rate for F/P> As of Dec. As of Dec. FY2018 FY2019 31, 2018 31, 2019 JPY/USD 110.3 109.2 JPY/USD 111.0 109.5 JPY/RMB 16.6 15.8 JPY/RMB 16.2 15.7 JPY/AUD - 74.7 JPY/AUD - 76.5 JPY/TRY - 18.9 JPY/TRY - 18.4 (10,000 t
Slide 42: Investor Relations
NIPPON PAINT HOLDINGS CO.,LTD. Investor Relations E-mail： 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