Nippon Paint Holdings Co., Ltd. · TSE:4612
Nippon Paint — Nippon Paint Hldgs — Q1 2021 Earnings Presentation
38 slides from Nippon Paint's earnings presentation, May 14, 2021
Slide 1: FY2021 1Q Financial Results Presentation Material
May 14, 2021 FY2021 1Q Financial Results Presentation Material
Slide 2: Contents
Contents 1. Summary of Today’s Presentation/Topics ・・・ P.3 2. FY2021 1Q Highlights ・・・ P.14 3. FY2021 1Q Results(by Region) ・・・ P.17 4. FY2021 2Q Market Outlook ・・・ P.27 5. Reference -(1)Breakdown of Adjustments ・・・ P.29 -(2)Performance Indicators ・・・ P.32 Disclosure policy for this document: - Both
Slide 3: Summary of Today's Presentation (1)
1-1．Summary of Today’s Presentation (1) ・FY2021 1Q revenue and operating profit significantly increased YoY both on a Tanshin and Non-GAAP basis FY2021 1Q ・NIPSEA China experienced a sharp rebound from the impact of COVID in 1Q FY2020 and ・reported 69% revenue growth and 88% operating profit growth.
Slide 4: Summary of Today's Presentation (2): Change of Representative Executive Officer
1-1．Summary of Today’s Presentation (2) Change of Representative Executive Officer (Change of President) ・Yuichiro Wakatsuki and Wee Siew Kim assumed the office of Representative Executive Officer ・& Co-President ・Goh Hup Jin serves as Chairman and the Lead Independent Director Masayoshi Nakamura as
Slide 5: Summary of Market and Business Conditions in Major Regions (1)
1-2．Summary of Market and Business Conditions in Major Regions (1) Market and business conditions in major regions 1Q results Lower revenue due to ongoing delays in painting projects and sluggish new orders Decorative due to new waves of COVID infections Japan Revenue at prior-year level due to cont
Slide 6: Summary of Market and Business Conditions in Major Regions (2)
1-2．Summary of Market and Business Conditions in Major Regions (2) Market and business conditions in major regions 1Q results Higher revenue due to continuing strength in COVID enhanced home improvement Oceania demand, compared with the negative impact of bushfires and floods in 1Q FY2020 Americas H
Slide 7: Summary of Market and Business Conditions in Major Regions (3)
1-2．Summary of Market and Business Conditions in Major Regions (3) Raw materials market conditions ・Market prices of basic petrochemical products increased sharply due to a rapid tightening ・of the supply and demand balance caused by factors including demand growth due to ・economic recovery and prod
Slide 8: Major Topics After FY2020 4Q Results ①
1-3．Major Topics After Announcement of FY2020 4Q Results ① Selected as excellent and most-improved integrated report by GPIF’s domestic equity investment managers (announced on February 26) ・Of the nominated 94 companies for most-improved integrated reports, we were elected as a company highly rated
Slide 9: Major Topics After FY2020 4Q Results ②
1-3．Major Topics After Announcement of FY2020 4Q Results ② Selected as a constituent of the MSCI Japan Empowering Women Index (WIN) (announced on March 3) ・Recognized for promoting women to managerial positions, including directors and corporate officers, since 2020. The selection in December 2020 w
Slide 10: Major Topics After FY2020 4Q Results ③
1-3．Major Topics After Announcement of FY2020 4Q Results ③ Nippon Paint China (NPC) awarded the first China Green Product Certification by CTC (China National Inspection and Quarantine Group) (announced on March 5) ・NPC’s12 products including interior paint obtained CTC’s China Green Product Certifi
Slide 11: Major Topics After FY2020 4Q Results ④
1-3．Major Topics After Announcement of FY2020 4Q Results ④ Selected as No.1 paint manufacturer by Chinese real estate developers for 10 consecutive years (announced on March 16) ・Selected as the No.1 preferred coatings brands for Top 500 Chinese Real Estate Enterprises at the summit sponsored by the
Slide 12: Major Topics After FY2020 4Q Results ⑤
1-3．Major Topics After Announcement of FY2020 4Q Results ⑤ Acquisition of Vital Technical (Malaysian paint adjacencies manufacturer) (announced on March 16) ・Vital Technical, established in 2002, is the No.1 player in Malaysia’s sealants and adhesive market, with a revenue of around JPY4.5 bn in 202
Slide 13: Major Topics After FY2020 4Q Results ⑥
1-3．Major Topics After Announcement of FY2020 4Q Results ⑥ DuluxGroup’s brands were voted Australia’s most trusted brands (announced on April 28) ・Trusted Brands 2021, sponsored by Australian Reader’s Digest, is a prestigious branding award with 22 years of history ・Ranking in each category is deter
Slide 14: FY2021 1Q Highlights
2. FY2021 1Q Highlights Photo image： Dunn-Edwards/ Long Beach store(California, U.S.A)
Slide 15: FY2021 1Q Highlights
2-1．FY2021 1Q Highlights (Billion yen) Results(Tanshin) Results(Non-GAAP) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 1Q 1Q (％) 1Q 1Q (Amount) (％) Revenue 162.9 231.4 42.1% 162.8 207.3 44.5 27.4% Operating profit 15.2 26.3 72.4% 15.2 22.4 7.2 47.5% OP margin 9.4% 11.3% 2.0pt 9.3% 10.8% - 1.5pt EBITDA 22
Slide 16: FY2021 1Q Highlights (Revenue & Operating Profit by Region)
2-2．FY2021 1Q Highlights (Revenue & Operating Profit by Region) (Billion yen) Results(Tanshin) Results(Non-GAAP) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 1Q 1Q (％) 1Q 1Q (Amount) (％) Revenue 40.1 39.9 -0.4% 40.1 39.9 -0.2 -0.4% Japan OP profit※1 5.1 4.4 -13.7% 5.1 4.4 -0.7 -13.7% Revenue 62.4 117.4 8
Slide 17: FY2021 1Q Results (by Region)
3. FY2021 1Q Results (by Region) Photo image: DuluxGroup/Dulux Colour Forecast for 2021 “Reset”
Slide 18: Market & Business Environment (1Q)
3-1．Market & Business Environment (1Q) Japan Asia (NIPSEA China) Oceania Americas Automotive Decorative DIY Project ■ Market (YoY) ■Business (vs. Market)※ ※Own estimation Strong Weak Outperform Inline Underperform Market analysis ✓Automotive: In Japan, 1Q market conditions remained unchanged from pr
Slide 19: Operating Profit Gap Analysis for FY2021 1Q
3-2. Operating Profit Gap Analysis for FY2021 1Q (Billion yen) 1.5 Gap(Non-GAAP) +7.2 Major reasons for changes ✓NIPSEA China ：Higher profit driven by strong sales in decorative (DIY) mainly in major urban areas and rebound from COVID impact in prior-year period, as well as continuing recovery in th
Slide 20: Analysis of Regional Performance (Japan)
3-3．Analysis of Regional Performance (Japan) (Billion yen) Results(Tanshin) Results(Non-GAAP) Quarterly performance (Tanshin) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 1Q 1Q (％) 1Q 1Q (Amount) (％) Automotive coatings 10.3 10.2 -0.7% 10.3 10.2 -0.1 -0.7% Decorative paints 10.3 9.9 -3.2% 10.3 9.9 -0.3 -
Slide 21: Analysis of Regional Performance (NIPSEA China)
3-4．Analysis of Regional Performance (NIPSEA China) (Billion yen) Results(Tanshin) Results(Non-GAAP) Quarterly performance (Tanshin) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 1Q 1Q (％) 1Q 1Q (Amount) (％) Automotive coatings 5.5 9.3 69.8% 5.5 8.7 3.3 60.1% Decorative paints 31.5 57.3 82.0% 31.4 53.9 22
Slide 22: Analysis of Regional Performance (Asia Excepting NIPSEA China)
3-5．Analysis of Regional Performance (Asia Excepting NIPSEA China) (Billion yen) Results(Tanshin) ※ Results(Non-GAAP) Quarterly performance (Tanshin) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 1Q 1Q (％) 1Q 1Q (Amount) (％) Revenue 21.7 44.5 104.6% 21.7 27.7 5.9 27.3% Operating profit 2.3 9.9 325.4% 2.3
Slide 23: Analysis of Regional Performance (Asia: Indonesia and India)
3-6．Analysis of Regional Performance (Asia: Indonesia and India) Results(Tanshin) Results(Non-GAAP) (Billion yen) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 1Q 1Q (％) 1Q 1Q (Amount) (％) Indonesia Revenue - 9.9 - - - - - Operating profit - 3.9 - - - - - OP margin - 39.5% - - - - - Results(Tanshin) Resul
Slide 24: Analysis of Regional Performance (Oceania)
3-7．Analysis of Regional Performance (Oceania) (Billion yen) Results(Tanshin) Results(Non-GAAP) Quarterly performance (Tanshin) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 1Q 1Q (％) 1Q 1Q (Amount) (％) Decorative paints 17.0 21.5 26.3% 17.0 18.4 1.3 7.9% Industrial coatings 1.3 1.6 22.0% 1.3 1.3 0.1 4.2%
Slide 25: Analysis of Regional Performance (Americas)
3-8．Analysis of Regional Performance (Americas) (Billion yen) Results(Tanshin) Results(Non-GAAP) Quarterly performance (Tanshin) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 1Q 1Q (％) 1Q 1Q (Amount) (％) Automotive coatings 6.0 6.2 2.5% 6.0 6.3 0.3 4.6% Decorative paints 10.9 11.2 3.2% 10.9 11.4 0.6 5.1%
Slide 26: Analysis of Regional Performance (Other)
3-9．Analysis of Regional Performance (Other) (Billion yen) Results(Tanshin) Results(Non-GAAP) Quarterly performance (Tanshin) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 1Q 1Q (％) 1Q 1Q (Amount) (％) Automotive coatings 2.6 2.9 10.2% 2.6 2.9 0.2 9.1% Decorative paints 5.2 6.7 29.5% 5.2 8.4 3.2 61.9% Indu
Slide 27: FY2021 2Q Market Outlook
4. FY2021 2Q Market Outlook Photo image: Betek Boya/“Fawori Dünyam App” (new app)
Slide 28: Market & Business Environment (2Q)
4-1．Market & Business Environment (2Q) Japan Asia (NIPSEA China) Oceania Americas Automotive Decorative DIY Project ■ Market (YoY) Strong Weak Market analysis ✓Automotive: In Japan and the Americas, market conditions expected to see rebounds from the impact of COVID that started in 2Q FY2020, althou
Slide 29: Reference: Breakdown of Adjustments
5-(1) Reference: Breakdown of Adjustments
Slide 30: Breakdown of Adjustments (FY2020 1Q vs. FY2021 1Q)
5-(1)-1．Breakdown of Adjustments (FY2020 1Q vs. FY2021 1Q) FY2020 1Q FY2021 1Q (Billion yen) M&A New M&A New FX Subsidy related acqui- Total FX Subsidy related acqui- Total cost sitions cost sitions Automotive - - - - - - - - - - Decorative - - - - - - - - - - Industrial - - - - - - - - - - Japan Fi
Slide 31: Breakdown of Adjustments (FY2020 1Q vs. FY2021 1Q)
5-(1)-2．Breakdown of Adjustments (FY2020 1Q vs. FY2021 1Q) FY2020 1Q FY2021 1Q (Billion yen) M&A New M&A New FX Subsidy related acqui- Total FX Subsidy related acqui- Total cost sitions cost sitions Automotive 0.0 - - - 0.0 0.8 - - 1.7 2.5 Decorative 0.1 - - - 0.1 3.6 - - 11.8 15.5 Industrial 0.0 -
Slide 32: Reference: Performance Indicators
5-(2) Reference: Performance Indicators
Slide 33: Revenue & Operating Profit Transition by Region ①
5-(2)-1．Revenue & Operating Profit Transition by Region ① (Billion yen) FY2019 FY2020 FY2021 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Automotive 11.9 11.4 11.3 10.2 10.3 5.5 8.8 10.1 10.2 Decorative 11.0 12.8 12.6 11.8 10.3 11.1 10.6 11.7 9.9 Industrial 10.0 10.2 10.1 10.4 9.1 8.4 8.5 9.4 9.0 Fine chemicals 2.2 2
Slide 34: Revenue & Operating Profit Transition by Region ②
5-(2)-2．Revenue & Operating Profit Transition by Region ② (Billion yen) FY2019 FY2020 FY2021 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Automotive 16.5 17.2 15.9 17.5 12.4 11.4 15.7 19.0 19.3 Decorative 54.3 65.6 65.3 58.5 40.5 66.0 75.3 70.8 82.1 Industrial 6.5 6.8 6.6 5.7 5.1 5.8 6.7 6.8 9.0 Fine chemicals 1.5 1.
Slide 35: Statement of Financial Position
5-(2)-3．Statement of Financial Position (Billion yen) As of As of As of As of Increase / Increase / Assets Dec. 31, Mar. 31, Liabilities and equity Dec. 31, Mar. 31, Decrease Decrease 2020 2021 2020 2021 Total current assets 643.5 585.7 -57.8 Total liabilities 915.6 949.4 33.8 Cash and cash equivale
Slide 36: Capital Expenditure, Depreciation, R&D Expenses, etc.
5-(2)-4．Capital Expenditure, Depreciation, R&D Expenses, etc. ＜Capital Expenditure, Depreciation, R&D Expenses, etc.＞ FY2020 FY2021 (Billion yen) 1Q 1Q Property, plant and 9.4 8.8 equipment Capital Intangible assets 0.5 0.9 expenditure Total 9.9 9.7 Property, plant and 5.6 6.7 equipment Depreciation
Slide 37: FX Rates & Market Conditions
5-(2)-5．FX Rates & Market Conditions <Exchange rate for P/L(average rate)> <Exchange rate for F/P(closing rate)> As of As of FY2020 FY2021 FY2021 FY2020 Dec. 31, Mar. 31, 1Q 1Q (as of Feb.) 2020 2021 JPY/USD 109.1 106.4 107.1 105.0 JPY/USD 103.5 110.7 JPY/RMB 15.5 15.4 16.5 15.7 JPY/RMB 15.9 16.9 JP
Slide 38: Nippon Paint Holdings Co., Ltd. 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