Chugoku Marine Paints,ltd. · TSE:4617

Chugoku Marine Paints,ltd — FY2025 Earnings Presentation

61 slides from Chugoku Marine Paints,ltd's earnings presentation, May 18, 2026

1. Slide 1: Financial Results for FY2025 and New Medium-Term Management Plan

   Financial Results for the Fiscal Year Ending March 31,2026 (FY2025) and Explanatory Materials concerning the New Medium-Term Management Plan May 18, 2026 Chugoku Marine Paints, Ltd. (TSE Code: 4617)

2. Slide 2: Outline

   Outline Page １. Consolidated Earnings Summary 3–8 ２. Summary by Product and Region 9–17 ３. Review of the Previous Medium-Term 18–25 Management Plan ４. New Medium-Term Management Plan 26–44 CMP New Century Plan 3 ５. FY2026 Outlook 45–48 ６. Reference 49–61 Note: Figures presented in tables and graphs

3. Slide 3: 1. Consolidated Earnings Summary

   1-1 1. Consolidated Earnings Summary Copyright © Chugoku Marine Paints, Ltd. All Rights Reserved.

4. Slide 4: Full-year earnings highlights

   Full-year earnings highlights Net sales increased, driven by strong sales of mainstay marine coatings and the optimization of selling prices to better reflect manufacturing costs. Profitability improved, mainly due to selling price revisions and increased sales of high-value added products. Both net

5. Slide 5: Consolidated income statement

   Consolidated income statement Profitability improved due to selling price revisions and an improved product mix, with the gross margin up 1.1pt YoY. The operating profit margin rose to 12.5%, as higher gross profit absorbed an increase in SG&A expenses (mainly personnel and transportation expenses).

6. Slide 6: Income statement supplemental information

   Income statement supplemental information FY2024 FY2025 Change % change Depreciation 1,698 1,847 ＋148 ＋8.8% R&D expenses 1,792 1,840 ＋48 ＋2.7% Capital Investment 2,169 2,484 ＋315 ＋14.5％ ◆Exchange rate(JPY) USD 151.58 149.71 －1.87 －1.2% EUR 163.95 169.00 ＋5.05 ＋3.1% CNY 21.02 20.82 －0.20 －1.0% KRW 0.

7. Slide 7: Consolidated balance sheet summary

   1-6 balance sheet summary Consolidated FY2024 FY2025 Change Main changes Cash and deposits +3,491, trade receivables +2,928, Current assets 108,373 117,716 ＋9,342 merchandise and finished goods +1,223, raw materials and supplies +1,345 Property, plant and equipment 24,599 22,625 －1,973 Buildings and

8. Slide 8: Consolidated cash flows statement summary

   1-7 cash flows statement summary Consolidated FY2024 FY2025 Change Main changes Impairment loss -776 Loss (gain) on sale and retirement of non-current Cash flows from operating activities 14,539 14,418 －120 assets +2,237 Decrease (increase) in trade receivables -2,601 Decrease (increase) in inventor

9. Slide 9: 2. Summary by Product and Region

   1-1 2. Summary by Product and Region Copyright © Chugoku Marine Paints, Ltd. All Rights Reserved.

10. Slide 10: Sales by product and region

    Sales by 2-1 product and region Europe and Japan China South Korea Southeast Asia Total the US FY2024 36,661 19,634 19,261 11,665 28,224 115,447 Marine FY2025 38,490 21,266 19,142 12,660 30,826 122,386 coatings % change ＋5.0% ＋8.3% －0.6% ＋8.5% ＋9.2% ＋6.0% FY2024 5,739 1,148 185 6,102 343 13,518 Indu

11. Slide 11: Summary by product

    Summary2-2 by product Summary by product Marine coatings Marine coatings Industrial coatings Container coatings Sales of new ship coatings remained solid overall, despite the easing 139,364 of large-scale project concentration in South Korea, supported by Construction 131,152 selling price optimizat

12. Slide 12: Performance by region

    2-3 by region Performance Sales increased in all regions except South Korea, primarily driven by strong sales of ship repair coatings in Europe. Forex impact (translation of local currencies into yen) put downward pressure on sales in China and South Korea, while boosting sales in Southeast Asia, Eu

13. Slide 13: Japan

    Japan 2-4 Sales Up 5.2% YoY Segment profit Up 48.0％ YoY 44,939 42,721 Heavy duty 2,656 重防食 coatings 2,602 2,500 3,532 Construction 建材 3,137 materials 2,420 ※1 ※1 3,287 2,211 PB等 PBs 2,220 －0.6% 16,540 修繕船 Ship repair 0 16,648 FY2025通期 2024年度 FY2024通期 2025年度 Overview Despite progress in efforts to op

14. Slide 14: China

    China 2-5 Sales Up 7.1% YoY Segment profit Up 9.3% YoY 22,908 3,000 コンテナ 21,398 441 Container 2,500 1,201 重防食 Heavy duty 615 coatings 2,000 1,148 1,500 2,716 2,968 6,427 修繕船 Ship repair ＋4.1 % 1,000 6,174 500 0 FY2024通期 2024年度 2024年度 1Q 2025年度 2025年度 通期 FY20251Q Overview Sales of new ship coatings i

15. Slide 15: South Korea

    South Korea 2-6 Sales Down 0.4% YoY Segment profit Up 28.8 YoY 20,000 19,446 ＋17.8% 19,360 Heavy duty 3,500 185 218 重防食 coatings 3,000 18,000 1,350 ＋7.3% 1,449 修繕船 Ship repair 2,500 2,000 16,000 1,500 3,276 2,543 14,000 1,000 500 12,000 0 FY2024通期 2024年度 2025年度 通期 FY2025 10,000 －1.2% 新造船 New ships O

16. Slide 16: Southeast Asia

    Southeast2-7 Asia Sales Up 6.7% YoY Segment profit Up 7.0 YoY 20,208 18,944 1,140 Container 4,500 コンテナ 4,000 coatings 1,176 3,500 3,000 6,323 Heavy duty 2,500 重防食 coatings 2,000 3,851 4,120 5,992 1,500 建材 1,000 673 PBs * 500 222 PB等 ※ 0 2024年度 1Q FY2024通期 2024年度 2025年度 FY20251Q 2025年度 通期 Overview Sa

17. Slide 17: Europe and the US

    Europe and 2-8the US Sales Up 11.5% YoY Segment profit Down 49.4% YoY 31,946 1,041 重防食 2,000 28,642 Heavy duty coatings 1,726 30,000 343 PBs* 1,500 1,339 2,191 1,000 25,000 500 1,109 20,000 0 2024年度 FY2024 2024年度 1Q 通期 2025年度 FY2025 2025年度 通期1Q 15,000 28,692 修繕船 Ship repair Overview 26,376 ＋8.8% Sal

18. Slide 18: 3. Medium-Term Management Plan CMP New Century Plan 2 Progress

    1-1 3. Medium-Term Management Plan CMP New Century Plan 2（FY2021 – FY2025） Progress in FY2025 Copyright © Chugoku Marine Paints, Ltd. All Rights Reserved.

19. Slide 19: Overview of the Previous Mid-Term Management Plan

    Overview of the Previous Mid-Term Management Plan Positioning Promote managerial innovation and lay foundations for value creation １ Promote the creation of social value by growing businesses that Expand value provided contribute to the environment and society, thereby expanding through environmenta

20. Slide 20: Progress by Key Theme (1)

    Progress by Key Theme (1) １ Expand value provided through environmental and social contributions Further expand reductions in greenhouse gases (GHGs) and volatile organic compounds (VOCs) Note: Both tables below display approximate reduction achieved by the Group compared to 2008 levels. GHG (CO2) e

21. Slide 21: Progress by Key Theme (2)

    Progress by Key Theme (2) 2 Improve and stabilize profit structure Strove to optimize selling prices, including those for new ship coatings, to reflect increased manufacturing costs Selling price Driven by price revisions and an improved product mix, average selling prices for marine coatings increa

22. Slide 22: Progress by Key Theme (3) / Investment Results

    Progress by Key Theme (3) ／ Investment Results 4 Actively raise shareholder returns and capital efficiency Shareholder return policy under the medium-term management plan FY2021 results FY2022 results FY2023 results FY2024 results FY2025 results FY2021 to FY2025 Shareholder Total return on consolida

23. Slide 23: Sales by product

    Sales by product Business expanded steadily, driven by an increase in new shipbuilding volume and growing demand for GHG emissions reduction measures for vessels, including compliance with IMO fuel-efficiency regulations. Marine coatings Profitability improved, driven by selling price optimization i

24. Slide 24: Consolidated performance

    Consolidated performance Initiatives under the medium-term management plan delivered strong results, with final-year results significantly exceeding the targets across all metrics. We made notable progress in improving and stabilizing the profit structure, with both operating profit and the operatin

25. Slide 25: Market valuation

    Market valuation Increase PBR with improved valuation in Steadily implement and generate results the capital market from the medium-term plan Supported by earnings growth and enhanced shareholder returns achieved under the medium-term management plan, CMP’s valuation in the capital markets improved

26. Slide 26: 4. New Medium-Term Management Plan CMP New Century Plan 3

    1-1 4. New Medium-Term Management Plan CMP New Century Plan 3 （FY2026 – FY2030） Copyright © Chugoku Marine Paints, Ltd. All Rights Reserved.

27. Slide 27: Assumptions of the medium-term management plan

    The strategies and targets set forth in this medium-term management plan are based on the assumption that the impact of escalating tensions in the Middle East on raw material procurement will not worsen beyond the current level and will largely normalize during FY2026. Accordingly, if future develop

28. Slide 28: Review of the previous medium-term management plan

    Review of the previous medium-term management plan CMP New Century Plan 2 Profit margins and unit selling prices improved • Sluggish growth in market share and sales volume significantly due to expanded sales of high-value-added Achievements Challenges • Major capex for production facilities were co

29. Slide 29: Partial revision of the long-term vision

    Partial revision of the long-term vision Partially revised the long-term vision, including the timeline (by 2030→beyond 2030) and ROE target (10%→12%) A leading global niche company distinguished by sustainability and high profitability Previously After revision (What CMP aims to become by 2030) (Wh

30. Slide 30: Positioning of the current medium-term management plan

    Positioning of the current medium-term management plan Preparation period for achieving the top share in the global marine coatings market and sustainable profit growth beyond 2030 FY2021 2025 2026 2030 Long-term A leading global niche company distinguished by sustainability and high profitability v

31. Slide 31: Direction and overview of the current medium-term management plan

    Direction and overview of the current medium-term management plan Refine strengths, create new value, and establish a decisive competitive advantage Basic strategies (key themes) Further refine existing strengths × Create new value Expand value provided through Address diverse customer needs and 1 e

32. Slide 32: Basic strategy 1: Environmental and social contributions (1)

    Basic strategy 1: Expand value provided through environmental and social contributions (1) Supply high-value-added products to achieve both environmental and social contributions and profitability improvements Contribute to reducing GHG emissions from the shipping industry by increasing the supply o

33. Slide 33: Basic strategy 1: Environmental and social contributions (2)

    Basic strategy 1: Expand value provided through environmental and social contributions (2) Supply high-value-added products to achieve both environmental and social contributions and profitability improvements Reduce VOC emissions through expanded sales of low- Pursue further value creation VOC coat

34. Slide 34: Basic strategy 2: Technological and product development capabilities

    Basic strategy 2: Further strengthen technological and product development capabilities Further refine capabilities to lead the industry over the long term Advance environmentally friendly product Develop innovative products development Enhance the performance of high-performance antifouling Anticip

35. Slide 35: Basic strategy 3: Address diverse customer needs

    Basic strategy 3: Address diverse customer needs and expand business opportunities Broaden the scope of the coatings business Actively cultivate new Strengthen branding and Optimize the product lineup customers and business marketing domains Combine high added value with Take calculated risks to dri

36. Slide 36: Basic strategy 4: Rebuild and enhance the production system (1)

    Basic strategy 4: Rebuild and enhance the production system (1) Make strategic investments at four major domestic and overseas production sites, representing approx. 70% of global production volume, to establish a sustainable production system for long- term growth Objectives of strategic investment

37. Slide 37: Basic strategy 4: Rebuild and enhance the production system (2)

    Basic strategy 4: Rebuild and enhance the production system (2) Make strategic investments at four major domestic and overseas production sites, representing approx. 70% of global production volume, to establish a sustainable production system for long- term growth Overview of strategic investments

38. Slide 38: Basic strategy 5: Management and organizational foundation

    Basic strategy 5: Strengthen the management and organizational foundation in line with business expansion Enhance management quality as a global company to support business growth Promote human capital management Enhance operational efficiency and sophistication through IT and DX Maximize human capi

39. Slide 39: Growth strategy: marine coatings (overall)

    Growth strategy, initiatives, and targets in marine coatings (overall) Adopt a more aggressive growth strategy to achieve the world’s top market share in the future Strengthen competitiveness in both sales and products while proactively expanding the business Global demand forecast Market share targ

40. Slide 40: Growth strategy: new ship coatings

    Growth strategy, initiatives, and targets in marine coatings (new ship coatings) Market environment Shipbuilding volume is expected to increase, driven by demand for next-generation fuel vessels and replacement demand for existing vessels. Japan: Shipyards are undertaking capacity expansion plans in

41. Slide 41: Growth strategy: ship repair coatings

    Growth strategy, initiatives, and targets in marine coatings (ship repair coatings) Market environment Ship repair volume is also expected to increase, driven by growth in the number of vessels in operation resulting from higher new shipbuilding volume. ◆Demand for fuel-efficient antifouling coating

42. Slide 42: Growth strategy: industrial coatings

    Growth strategy, initiatives, and targets in industrial coatings Against the backdrop of expanding global infrastructure investment, we aim to drive growth primarily through overseas heavy-duty coatings while also exploring inorganic growth opportunities. Heavy-duty coatings Sales targets Container

43. Slide 43: Consolidated performance targets (FY2030)

    Consolidated performance targets (FY2030) Implement strategic investments to establish a decisive competitive advantage while maintaining the operating profit margin at the FY2025 level and improving the EBITDA margin Growth vs. FY2025 results FY2030 targets FY2025 Net sales ¥139.3 billion 100.0% ¥1

44. Slide 44: Cash allocation, financial policy, and shareholder return policy

    Cash allocation, financial policy, and shareholder return policy Expected cash allocation and financial policy during the five-year medium-term plan period Cash inflow Cash outflow Implement growth investments and enhance capital efficiency With a view to sustainably enhancing corporate value, alloc

45. Slide 45: 5. FY2026 Outlook

    1-1 5. FY2026 Outlook Copyright © Chugoku Marine Paints, Ltd. All Rights Reserved.

46. Slide 46: FY2026 full-year earnings forecasts

    3-1 FY2026 full-year earnings forecasts While we expect steady demand, particularly for core marine coatings, uncertainty remains high regarding raw material costs and procurement amid escalating tensions in the Middle East. We have presented only a range forecast for net sales, as shown below, whil

47. Slide 47: FY2026 Shareholder returns forecast

    3-1 FY2026 Shareholder returns forecast Based on the shareholder return policy under the new medium-term management plan, we plan to pay an annual ordinary dividend of ¥100 per share, up ¥3 YoY. Dividend per share 120 111 中間 期末 特別 97 14 100 100 (JPY) Ordinary 80 ＋3 yen 80 49 50 57 60 46 97 40 35 35

48. Slide 48: Forecast cautionary note

    www.cmp.co.jp www.cmp-chugoku.com Forecasts presented in these materials are based on judgments made in accordance with information available to CMP as of May 15, 2026. Actual results may differ materially from forecasts due to various risks and uncertainties. Copyright © Chugoku Marine Paints, Ltd.

49. Slide 49: 6. Reference

    1-1 ６. Reference Copyright © Chugoku Marine Paints, Ltd. All Rights Reserved.

50. Slide 50: Company outline

    Company参考 outline Name Chugoku Marine Paints, Ltd. Establishment May 1917 (in business for 109 years) Main business Production and sales of functional coatings centered on marine coatings Capital 11,626 million yen TOKYO ： Toranomon Hills Station Tower 16F, 2-6-1 Toranomon, Minato-ku, Tokyo, Headqua

51. Slide 51: Bases and Group companies

    Bases and 参考Group companies Our business encompasses approximately 60 locations belonging to 25 companies located in 20 countries around the world. Norway UK Holland Germany 【Japan】 Italy South Korea Tokyo (headquarters) Greece Turkey Shanghai Shiga Cyprus UAE Guangdong Hyogo Myanmar USA India Taiwa

52. Slide 52: Products (Marine coatings)

    Products参考 (Marine coatings) Marine coatings 船底部を汚損から護る防汚塗料や、各種タンクを腐食から護る防 CMP provides antifoulings that protects ship bottoms from contamination and products for every part of the hull, including 食塗料など船体のあらゆる部位に応じた製品を供給しています。 heavy duty coatings protecting a variety of tanks from corrosion. In add

53. Slide 53: Antifouling paint

    1-5paint Antifouling Antifouling paint prevents increases to surface drag caused by Mechanism barnacles and other marine organisms that attach themselves Hydrolysis type, to ship bottoms. which is the main type of bottom paint used today → These coatings help improve ship fuel efficiency and reduce

54. Slide 54: Reducing GHG emissions from ships

    Reducing1-5 GHG emissions from ships Efforts to make ships environmentally compliant through the reduction of greenhouse gas emissions represent a business opportunity for CMP ～ ～ 2008年 2020 2023 2025 2030 2050 (Base year for measuring emissions) 輸送量当たり 40% 排出量 既存船の Application of fuel Roadmap for r

55. Slide 55: Products (Industrial and Container coatings)

    Products参考 (Industrial and Container coatings) 船舶用塗料 Industrial coatings Container coatings CMP provides a variety of products including construction materials such CMP supplies container coatings mainly in China and Southeast Asia, コンテナボックスの主要生産地である中国を 船舶用塗料で培った技術を活用し、フローリングや外壁等の建材 as flooring mate

56. Slide 56: ESG information (E)

    ESG information 参考 (E) E: Environment Products contributing to the realization of a sustainable society 【CO2低減と省エネ】 Reducing CO2 and saving energy 【再生可能エネルギー】 Renewable energy Antifoulings, the core product of marine coatings, improve ship mileage by reducing CMP promotes joint research with univers

57. Slide 57: ESG Information (S&G)

    ESG Information 参考 (S&G) S:Society G:Governance 【Outline of the HR strategy】 Structure ◼ Organization: Company with auditors ◼ Director’s term: One year ◼ Officer composition: Two of seven directors are outside directors. (More than 1/3.) Two of four auditors are outside auditors. ◼ Outside officers

58. Slide 58: Key raw material prices (domestic market)

    Key raw material prices (domestic market) （JPY/kl） （JPY/kl） Domestic naphtha Domestic copper price Yen-denominated price of※ price (right axis) 国産ナフサ（右軸） (left axis) 銅国内建値（左軸） epoxy resin (left axis)* エポキシ樹脂円建（左軸） 2,160 2,200 2,106 130,000 Copper 2,000 120,000 1,753 （Apr-Jun 1,800 Forecast） 1,570 1,

59. Slide 59: Key raw material prices (overseas market)

    Key raw material prices (overseas market ) Naphtha price ※ copper price (left axis) ※ Epoxy resin (left axis)* ナフサ（右軸） LME銅（左軸） エポキシ樹脂（左軸） (US＄/t） (right axis) * 12,857 （US$/t） 12,848 1,200 Copper 12,000 1,083 11,100 1,000 9,751 9,792 10,000 9,327 9,519 9,204 9,145 8,478 8,356 8,444 800 8,169 8,000

60. Slide 60: Fact Sheet (FY2021-FY2025)

    Fact Sheet（FY2021-FY2025） Note: Underlined figures were revised on December 27, 2021. 【Consolidated Basis】 FY2021 FY2022 FY2023 FY2024 FY2025 Net sales (millions of yen) 84,295 99,481 116,174 131,152 139,364 Operating profit (millions of yen) 687 3,887 12,185 15,381 17,437 Ordinary profit (millions

61. Slide 61: Fact Sheet (FY2016-FY2020)

    Fact Sheet（FY2016-FY2020） Note: Underlined figures were revised on December 27, 2021. 【Consolidated Basis】 FY2016 FY2017 FY2018 FY2019 FY2020 Net sales (millions of yen) 82,368 82,980 88,452 87,729 82,442 Operating profit (millions of yen) 5,429 3,704 △643 3,441 6,506 Ordinary profit (millions of ye

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