Nippon Paint Holdings Co., Ltd. · TSE:4612
Nippon Paint — Merger or Acquisition (April 2019)
17 slides from Nippon Paint's merger presentation, Apr 17, 2019
Slide 1: Acquisition of DuluxGroup Limited
Acquisition of DuluxGroup Limited April 17, 2019 Nippon Paint Holdings Co., Ltd.
Slide 2: Executive Summary
Executive Summary DuluxGroup is a leading player in the decorative paint market in the Pacific region where the demand is expected to grow, and is a blue-chip company with stable and continuous track record of profit growth since its demerger in 2010. Nippon Paint Holdings Group strengthens its
Slide 3: Today's agenda
Today’s agenda 1. Background & strategic significance of the acquisition 2. Overview of DuluxGroup 3. Overview of the acquisition 4. Financial impact 5. NPHD’s governance and growth strategy NPHD stands for Nippon Paint Holdings 3
Slide 4: Background & strategic significance: Medium-term Plan N-20
1. Background & strategic significance: in the context of Medium-term Plan “N-20” Medium-term management plan “N-20” to implement a growth strategy towards 2020 A leading company that continuously creates new value Medium-term plan up to 2020 Three years of accelerating growth “Win” in every busines
Slide 5: Background & strategic significance: Global market structure
1. Background & strategic significance: Global market structure Establish a leading position in two domains : Decorative paints & Asia-Pacific Share of each segment of world paint/coating market (2018) World paint/coating market (projected share in each region) Decorative 39% 82 US$bn 107 US$bn Spec
Slide 6: Background & strategic significance: Global business area balance
1. Background & strategic significance: Global business area balance Establish well-balanced region portfolio through transaction : fast-growing region (Asia & China) vs stable-growth region (Japan, Americas, Europe & Pacific) FY2018 result (IFRS) FY2018 result (IFRS) After transaction1 (Simple aggr
Slide 7: Five factors contributing to the maximization of value
1. Background & strategic significance: five factors contributing to the maximization of value The acquisition of DuluxGroup significantly contributes to the creation of the corporate & shareholder value Well-balanced regional portfolio By incorporating the Pacific region, optimizes the balance be
Slide 8: Overview of DuluxGroup: History and Market share
2. Overview of DuluxGroup: History and Market share ANZ：Australia and New Zealand Established in 1918, household brand in ANZ market, with high consumer recognition DuluxGroup’s History Market share in ANZ paints & coatings1 1918 Commenced BALM No.1 others Market 1928 Became part of ICI group share
Slide 9: Overview of DuluxGroup: Business/Product portfolio
2. Overview of DuluxGroup: Business/ Product portfolio Leading company in the ANZ market. Diversified business and product portfolio 12% Dulux ANZ 11% Selleys & Parchem ANZ 10% 53% B&D Group Lincoln Sentry 14% Other Businesses Paint business Home Improvement businesses Other businesses Paints ＆ Coat
Slide 10: Overview of DuluxGroup
2. Overview of DuluxGroup Since 2010 demerger, delivered high growth and solid profitability for eight consecutive years Sales & profit (JPY 100mn）1 Sales & EBIT by business segment (Sep 2018) Sales / sales growth rate Dulux ANZ Selleys & Parchem ANZ B&D Group 2,000 28.4% 7.2% 39.1% 8.5% 4.7% 1.7% 4
Slide 11: Market environment surrounding DuluxGroup
2. Overview of DuluxGroup: Market environment surrounding DuluxGroup Attractive Australian paint market offering stable growth, where the growth is expected to continue Australia real GDP growth rate (%) Population Outlook (m) Home Renovation market in Australia (Monetary Value) 40 3.9% 2.6% 2.6% 3.
Slide 12: Overview of the acquisition
3. Overview of the acquisition Equity Consideration ： A$3,756mn (JPY300.5bn *A$=JPY80) Transaction A$9.65 per share (paid by cash) DuluxGroup shareholders will be receiving A$9.80 per share in total, inclusive of A$0.15 per amount share as interim dividend for the six months ended March 31, 20
Slide 13: Financial impact (PL&BS)
4. Financial impact (PL&BS) EPS accretion almost immediately after the transaction. Maintains healthy financial condition. After Acquisition FY2018 FY2018 (historical pro forma) (Dec.2018) (Sep.2018) Sales JPY627.7bn JPY147.5bn JPY775.2bn Operating profit1 JPY86.5bn JPY17.9bn JPY104.4bn Operating pr
Slide 14: NPHD's governance and growth strategy
5. NPHD’s governance and growth strategy Establishing a forward-looking governance structure offering high levels of expertise and transparency Directors of the Board as of 27 March 2019 Masaaki Tanaka Tetsushi Tado Manabu Minami Seiichiro Shirahata Atsushi Nagasaka Hup Jin Goh Executive Chairman Pr
Slide 15: NPHD's governance and growth strategy: five-regional system
5. NPHD’s governance and growth strategy Accelerates growth strategy under group governance: five-regional system under the global headquarters Global HQ Nippon Paint Holdings (NPHD) Five-Regional System Asia Pacific Europe Japan Americas (Nipsea) (DuluxGroup) Wholly-Owned Wholly-Owned Wholly-Owned
Slide 16: Today's Summary
Today’s Summary DuluxGroup is a leading player in the decorative paint market in the Pacific region in which the demand is expected to grow, and is a blue-chip company with stable and continuous track record of growth in profitability since its demerger in 2010. Nippon Paint Holdings Group stren
Slide 17: Inquiries
<Inquiries> +81 (0)6-6455-9140 Investor Relation Office, Department of Corporate Communications, Corporate Planning & Development, Nippon Paint Holdings Co., Ltd. This document contains judgements made by the Company based on information available at the time it was prepared, and includes risks and
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