Nippon Paint Holdings Co., Ltd. · TSE:4612
Nippon Paint — H1 FY2013 Earnings Presentation
44 slides from Nippon Paint's earnings presentation, Nov 18, 2013
Slide 1: Analysts' Meeting for Financial Results of First Half FY 2013
FY 2013 Nippon Paint Group Analysts' Meeting for Financial Results of First Half FY 2013 November 18, 2013 Nippon Paint Co., Ltd.
Slide 2: Disclaimer
Disclaimer 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 Co., Ltd. and the Nippon Paint Group may be significantly different f
Slide 3: Table of Contents
Table of Contents Trends of Financial Results for Full Year & Summary ・・・・・・・・・・・・・・・ P3 1. Financial Results of 1H FY 2013 ・・・・・・・・・・・・・・・ P5 2. Forecast of FY 2013 ・・・・・・・・・・・・・・・ P11 3. Progress of 2014 Middle-Term Management Plan ・・・・・・・・・・・・・・・ P21 <Reference Materials> ・・・・・・・・・・・・・・・ P30 2
Slide 4: Financial Results Trend
Financial Results Trend Net sales Operating income (100 million yen) Ordinary income 2520 2550 2274 2334 2165 2223 440 330 330 315 202 202 259 270 128 160 163 99 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 (Forecast) Announced on Announced on May 8, 2013 Nov 6, 2013 ROE 7.6% 11.6% 9.3% 13.5% 12.4% 17.0%
Slide 5: Summary
Summary Financial Results of 1H FY 2013 (i) Japan: Automobile production exceeded the Company’s estimate. The Company saw a last-minute rise in demand for trade-use paints and industrial-use coatings before the consumption tax hike. (ii) Equity-method affiliates: Sales were strong and profitability
Slide 6: 1. Financial Results of 1H FY 2013
1. Financial Results of 1H FY 2013 5
Slide 7: Financial Results for 1H FY 2013
Financial Results for 1H FY 2013 (100 million yen) YoY Comparison Impact of foreign Change vs. 1H FY 2013 exchange rates announcement on Change Percent change Jul 19, 2013 Net sales 1269.0 +75.7 +6.3% +65.2 +9.0 Operating income 165.5 +30.0 +22.1% +5.2 +5.5 (Equity in earnings of affiliates) 51.1 +2
Slide 8: Net Sales by Business Segment
Net Sales by Business Segment (100 million yen) YoY Comparison Change vs. 1H FY 2013 Impact of foreign Change Percent change announcement on exchange rates Jul 19, 2013 Automotive coatings 457.4 +42.8 +10.3% +42.3 -0.6 Trade-use paints 243.4 +23.4 +10.6% +5.5 +4.4 Industrial-use Paint business coati
Slide 9: Net Sales and Profits by Geographic Segment
Net Sales and Profits by Geographic Segment YoY Comparison (100 million yen) Change vs. 1H FY 2013 Impact of foreign announcement on Change exchange rates Jul 19, 2013 Net sales 909.1 +13.3 - +9.1 Japan Operating income 134.1 +17.2 - +4.1 Net sales 225.5 +39.3 +43.9 +0.5 Asia Operating income 19.1 +
Slide 10: Analysis on Changes in Operating Income
Analysis on Changes in Operating Income Y-on-Y Comparison Operating income for 1H FY 2012 13,550 million yen (Japan: 11,690 million yen; Overseas etc.: 1,860 million yen) Change in non-consolidated and Change by segment subsidiaries Change in net sales Change in Non- +410 Japan consolidated Non-cons
Slide 11: Analysis on Change in Ordinary Income
Analysis on Change in Ordinary Income Y-on-Y Comparison Ordinary income for 1H FY 2012 14,650 million yen Operating income +3,000 Details of change Financial account balance +170 Up 8,040 million yen Equity in earnings of affiliates +2,900 Other non-operating income +1,970 Ordinary income for 1H FY
Slide 12: 2. Forecast of FY 2013
«ey NIPPON PAINT CO.LTD. 2. Forecast of FY 2013 11
Slide 13: Forecast of FY 2013
Forecast of FY 2013 (100 million yen) YoY comparison FY 2013 Change vs. Change Impact of foreign announcement on Percent change Full-year 1H 2H exchange rates Jul 19, 2013 Net sales 2550 1269 1281 +216.2 +9.3% +131.2 +20.0 Operating income 315 165 150 +56.4 +21.8% +10.6 +15.0 (Equity in earnings of
Slide 14: Net Sales by Business Segment
Net Sales by Business Segment (100 million yen) YoY comparison FY 2013 Change due to Change from foreign exchange announcement on Change Percent change rates July 19, 2013 Full-year 1H 2H Automotive coatings 910 457 453 +97.1 +11.9% +83.9 +6.0 Trade-use paints 481 243 238 +43.3 +9.9% +10.3 +3.0 Pain
Slide 15: Net Sales and Profits by Geographic Segment
Net Sales and Profits by Geographic Segment (100 million yen) YoY comparison FY 2013 Change vs. Impact of foreign announcement on Full-year 1H 2H Change exchange rates Jul 19, 2013 Net sales 1813 909 904 +67.8 - +26.0 Japan Operating income 255 134 121 +30.6 - +11.0 Net sales 469 226 243 +98.3 +86.8
Slide 16: Analysis on Changes in Operating Income
Analysis on Changes in Operating Income Y-on-Y Comparison Operating income for FY 2012 25,860 million yen (Japan: 22,440 million yen; Overseas etc.: 3,420 million yen) Change in non-consolidated and Change by segment subsidiaries Change in Non- Change in net sales +1,280 Japan consolidated Non-conso
Slide 17: Analysis on Change in Ordinary Income
Analysis on Change in Ordinary Income Y-on-Y Comparison Ordinary Income for FY 2012 32,960 million yen Operating income +5,640 Details of change Financial account balance +210 Up 11,040 million yen Equity in earnings of affiliates +6,110 Other non-operating income -920 Ordinary Income for FY 2013 44
Slide 18: Analysis on Changes in Operating Income (H-on-H)
Analysis on Changes in Operating Income H-on-H Comparison Operating income for 1H FY 2013 16,550 million yen (Japan: 13,410 million yen; Overseas etc.: 3,140 million yen) Change in non-consolidated and Change by segment subsidiaries Change in Non- Change in net sales -460 Japan consolidated Non-cons
Slide 19: Analysis on Change in Ordinary Income (H-on-H)
Analysis on Change in Ordinary Income H-on-H Comparison Ordinary income for 1H FY 2013 22,690 million yen Operating income -1,600 Details of change Financial account Down 1,380 million yen balance -90 Equity in earnings of affiliates +780 Other non-operating income -470 Ordinary income for 2H FY 201
Slide 20: Net Sales and Earnings of Equity-Method Affiliated Companies
Net Sales and Earnings of Equity-Method Affiliated Companies Percent change in net sales of equity-method affiliated (100 million yen) companies (YoY comparison on a local currency basis) net sales trends FY 2011 FY 2012 FY 2013 FY 2011 FY 2012 FY 2013 Full-year Full-year Interim Full-year Interim F
Slide 21: Financial Strategy
Financial Strategy Nippon generate funds from profits obtained in 1st & 2nd stages of Survival Challenge to invest them in the growth strategy for 3rd stage and later. (100 million yen) FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 (forecast) CF from operating 86.4 174.9 203.5 224.8 318.5 320 acti
Slide 22: 3. Progress of 2014 Middle-Term Management Plan
3. Progress of 2014 Middle-Term Management Plan 21
Slide 23: 2014 Middle-Term Management Plan: Basic Strategy
2014 Middle-Term Management Plan: Basic Strategy In the 2nd stage Step to Jump - Nippon will promptly solve unsolved 3rd stage of Survival Challenge program problems in 1st stage of Survival Challenge 2015～ (SC) program. Boost profits Basic policy to the same level as those of leading - Nippon will
Slide 24: Progress of 2nd Stage of Survival Challenge Program
Progress of 2nd Stage of Survival Challenge Program Nippon is expected to achieve the financial target one year earlier than planned. -Management placed more emphasis on management efficiency, for example, ROE, ROA, etc. -Preconditions at the time of formulating the plan, such as foreign exchange ra
Slide 25: Sow the Seeds for 3rd Stage of Survival Challenge: Automotive Coatings Global Strategy
Sow the Seeds for 3rd Stage of Survival Challenge: Automotive Coatings Global Strategy In the U.S.: Focus on the automotive coating business Sold NPAC* powder coating business to Protech Chemicals (Canada) * NPA Coating Inc. In China: Cultivate business with U.S. and European automobile manufacturer
Slide 26: Automotive Coatings Global Strategy: Japanese market will become smaller, but global market is expanding
Automotive Coatings Global Strategy: Japanese market will become smaller, but global market is expanding. South Korea Europe North CY2012 4.60 million units America CY2012 20.17 million units CY2020 4.50 million units CY2020 22.00 million units Japan CY2012 15.80 million units CY2020 18.00 million u
Slide 27: Automotive Coatings Global Strategy: New Target - Regions, Customers and Products
Automotive Coatings Global Strategy: New Target -Regions, Customers and Products - Nippon aims to become one of top three companies as full lineup global supplier. Expansion of profits of existing businesses and <New Target> × <Localization> Local consumption Regions, customers of locally produced a
Slide 28: Acquired a 39% of Equity in B&K, a German Paint Manufacturer
Acquired a 39% of Equity in B&K, a German Paint Manufacturer Company name: BOLLIG & KEMPER GmbH & CO. KG Establishment: 1919 Location: Cologne, Germany Capital stock: 5.7 million Euros Net sales: Around 10,000 million yen (in 2012) Main bases: Headquarters and plant: Cologne, Germany; [Company’s bui
Slide 29: Automotive Coatings Global Strategy: Expansion Plan
Automotive Coatings Global Strategy: Expansion Plan Nippon aims to expand the automotive coatings business by riding the tide of market growth. <Sales of automotive coatings by region> In 2012 In 2016 (forecast) In 2020 (forecast) 127,000 million yen 161,500 million yen 212,000 million yen Japan Chi
Slide 30: Basic & New
((@)) NIPPON PAINT CO.LTD. Basic & New
Slide 31: <Reference Materials>
«ey NIPPON PAINT CO.LTD. <Reference Materials> 30
Slide 32: Change in Consolidated Financial Results
Change in Consolidated Financial Results (100 million yen) FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 1H Full-year 1H Full-year 1H Full-year 1H Full-year 1H Full-year forecast Net sales 1026.2 2165.5 1151.5 2273.8 1068.3 2222.6 1193.3 2333.8 1269.0 2550 Operating income 27.0 98.8 92.1 159.8 50.2 163.2
Slide 33: Change in Consolidated Financial Results by Geographic Segment
Change in Consolidated Financial Results by Geographic Segment (100 million yen) FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 1H Full-year 1H Full-year 1H Full-year 1H Full-year 1H Full-year forecast Net sales 841.2 1727.1 881.1 1737.2 822.0 1723.3 895.8 1745.2 909.1 1813 Japan Operating income 43.2 94.4
Slide 34: Change in Consolidated Net Sales by Business Segment
Change in Consolidated Net Sales by Business Segment Consolidated total net sales (100 million yen) FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 1H Full-year 1H Full-year 1H Full-year 1H Full-year 1H Full-year forecast Automotive coatings 297.0 676.0 386.6 747.5 328.7 724.1 414.7 812.9 457.4 910 Trade-us
Slide 35: Change in Consolidated Net Sales by Business Segment: Japan
Change in Consolidated Net Sales by Business Segment Japan (100 million yen) FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 1H Full-year 1H Full-year 1H Full-year 1H Full-year 1H Full-year forecast Automotive coatings 192.4 417.6 219.3 415.8 176.8 415.5 224.7 428.2 217.8 432 Trade-use paints 202.9 396.7 19
Slide 36: Change in Consolidated Net Sales by Business Segment: Asia
Change in Consolidated Net Sales by Business Segment Asia (100 million yen) FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 1H Full-year 1H Full-year 1H Full-year 1H Full-year 1H Full-year forecast Automotive coatings 46.5 113.0 75.4 156.3 73.9 143.8 84.5 179.1 111.7 224 Trade-use paints 14.9 31.6 18.6 36.0
Slide 37: Change in Consolidated Capital Expenditures, Depreciation, and R&D Expenses
Change in Consolidated Capital Expenditures, Depreciation, and R&D Expenses (100 million yen) FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 1H Full-year 1H Full-year 1H Full-year 1H Full-year 1H Full-year forecast Capital Expenditures 32.9 67.5 29.8 55.5 18.9 35.5 27.2 51.1 27.8 60 Depreciation 43.1 90.4
Slide 38: Changes in Consolidated Cash Flows
Changes in Consolidated Cash Flows (100 million yen) FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 1H Full-year 1H Full-year 1H Full-year 1H Full-year 1H Cash flows from operating activities 50.9 174.9 70.4 203.5 21.6 224.8 101.8 318.5 75.5 Cash flows from investing activities -49.1 -76.3 -42.0 -84.9 -14.
Slide 39: Change in Foreign Exchange Rates (Term Average)
Consolidated Statements of Income: Change in Foreign Exchange Rates (Term Average) FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 1H 1H 1H 1H 1H Full-year Full-year Full-year Full-year Full-year forecast US Dollar 96.0 93.7 91.0 87.3 81.8 79.7 79.8 80.1 95.9 97.7 Chinese Yuan 14.6 14.2 13.9 13.4 13.0 12.9
Slide 40: Change in Main Consolidated Indicators
Change in Main Consolidated Indicators FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 1H Full-year 1H Full-year 1H Full-year 1H Full-year 1H Gross profit ratio (%) 31.7 32.7 33.7 33.0 31.6 33.0 34.7 35.2 36.4 Operating income ratio (%) 2.6 4.6 8.0 7.0 4.7 7.3 11.4 11.1 13.0 Ordinary income ratio (%) 3.8 5.
Slide 41: Market Condition: Change in Japan-Produced Naphtha Prices
Market Condition: Change in Japan-Produced Naphtha Prices (Yen/kg) 1Q 2Q 3Q 4Q FY 2010 49,700 42,700 45,100 52,400 FY 2011 59,000 54,900 51,700 54,100 FY 2012 60,600 49,800 55,800 63,800 FY 2013 65,500 63,900 66,000 * The figure for the 2nd half of FY 2013 is the Company’s estimate. 40
Slide 42: Market Condition: Change in the Number of Automobiles Produced in Japan
Market Condition: Change in the Number of Automobiles Produced in Japan (10,000 units) 1H 2H Full-year FY 2010 478 421 899 FY 2011 390 537 927 FY 2012 490 465 955 FY 2013 474 490 964 * The figures for the 2nd half and full-year of FY 2013 are the Company’s estimates. 41
Slide 43: List of Main Companies in the Nippon Paint Group
List of Main Companies in the Nippon Paint Group Green shaded areas represent countries and regions where the Nippon Paint Group companies have offices. Green shaded areas represent countries and regions where List of main group companies Subsidiaries Equity-method affiliates Other the Nippon Paint
Slide 44: Nippon Paint Co., Ltd.
((@)) NIPPON PAINT CO.LTD. Basic & New
Nippon Paint Holdings — H1 FY2013 Earnings Presentation on 6ix