Nippon Paint Holdings Co., Ltd. · TSE:4612
Nippon Paint — Nippon Paint Hldgs — Q1 2023 Earnings Presentation
32 slides from Nippon Paint's earnings presentation, May 15, 2023
Slide 1: FY2023 1Q Financial Results Presentation Material
May 15, 2023 FY2023 1Q Financial Results Presentation Material Betek Boya (Designer: Renda Helin Cilalioğlu)
Slide 2: Contents
□ FY2023 1Q Summary/Topics ・・・ P.3 □ Supplemental Material ・・・ P.9 1. FY2023 1Q Results: Highlights ・・・ P.10 Contents 2. FY2023 1Q Results: By Segment ・・・ P.13 (Appendix) Reference Data Disclosure policy for this document: - Both reported base (Tanshin) and adjusted base (Non-GAAP) financials are di
Slide 3: Summary: FY2023 1Q Operating Results
1. Summary: FY2023 1Q Operating Results *1 ◆ Tanshin FY2023 1Q • Higher revenue driven by volume growth and pricing flow through mainly in decorative business, new consolidation of JUB, and FX • Gross profit margin improved YoY and QoQ for three consecutive quarters due to improved RMCC*2 ratio • Co
Slide 4: Raw Material Market Conditions and Our Responses
2. Raw Material Market Conditions and Our Responses Continue to pursue margin improvement through pricing flow through and lowering of RMCC ratio FY2023 1Q FY2023 2Q and beyond • Economic activities remained stagnant globally due to interest rate hikes to • Crude oil prices declined to US$72 in mid-
Slide 5: Market & Business Environment
3. Market & Business Environment NIPSEA China affected by lower automobile production by Japanese OEMs and the Americas impacted by softness in decorative market due to period of heavy rainfall Japan NIPSEA China Oceania Americas Europe Automotive FY2023 1Q Decorative TUC TUB FY2023 Automotive 2Q (o
Slide 6: Summary of Operating Results in Major Segments
4. Summary of Operating Results in Major Segments (Billion yen) Tanshin Non-GAAP Overview 2023 1Q YoY 2023 1Q YoY Revenue 47.0 +12.4% 46.7 +11.8% ▶Decorative Higher revenue due partly to pricing actions, despite impact of cold weather and snowfall that started in mid-January Japan ▶Automotive Higher
Slide 7: Major Topics (1): Independent Directors on Committees
5. Major Topics (1) Two Independent Directors who were appointed in 2022 have become committee members • The Board of Directors and each Committee in new composition will assist our pursuit of Maximization of Shareholder Value (MSV) Committee Experience/Skills Name Global Manufacture Compensa- Corpo
Slide 8: Major Topics (2): Updated Corporate Governance Website Content
5. Major Topics (2) Updated corporate governance website content “Viewpoints of Independent Directors” • Posted a new article featuring Independent Director Lim Hwee Hua (in April 2023) • Articles featuring other Independent Directors scheduled for release in the future (updated from time to time) ▶
Slide 9: Supplemental Material
Supplemental Material 1. FY2023 1Q Results: Highlights … P.10 2. FY2023 1Q Results: By Segment … P.13 (Appendix) Reference Data
Slide 10: FY2023 1Q Results: Highlights
1. FY2023 1Q Results: Highlights 10
Slide 11: Highlights (Consolidated)
1-1．Highlights (Consolidated) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2022 FY2023 YoY FY2022 FY2023 YoY YoY 1Q *1 1Q (％) 1Q *1 1Q (Amount) (％) Revenue 285.1 330.2 15.8% 285.1 310.8 25.8 9.0% Operating profit 21.9 34.9 59.4% 24.1 31.7 7.7 32.0% OP margin 7.7% 10.6% 2.9pt 8.4% 10.2% - 1.8
Slide 12: Highlights (by Segment)
1-2．Highlights (by Segment) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2022 FY2023 YoY FY2022 FY2023 YoY YoY 1Q * 1Q (％) 1Q * 1Q (Amount) (％) Revenue 41.8 47.0 12.4% 41.8 46.7 4.9 11.8% Japan Operating profit 0.3 2.6 810.5% 0.8 2.6 1.8 223.4% Revenue 153.6 178.0 15.9% 153.6 171.9 18.3 11.9
Slide 13: FY2023 1Q Results: By Segment
2. FY2023 1Q Results: By Segment 13
Slide 14: Revenue and Operating Profit Analysis
2-1．Revenue and Operating Profit Analysis (Billion yen) Paint and Coatings Business * Revenue Non-GAAP basis +9.0% (+25.8) Tanshin basis +15.8% (+45.1) Operating Profit Non-GAAP basis +7.7 *Products included in the Paint and Coatings Business such as semi-finished products and fine chemicals with un
Slide 15: Japan
2-2．Japan (Billion yen) Results (Tanshin) Results (Non-GAAP) Quarterly performance (Tanshin) FY2022 FY2023 YoY FY2022 FY2023 YoY YoY 1Q 1Q (％) 1Q 1Q (Amount) (％) Automotive coatings 8.7 10.4 20.6% 8.7 10.4 1.8 20.6% Decorative paints 10.4 11.1 7.0% 10.4 11.1 0.7 7.0% Industrial coatings 9.1 9.3 2.1%
Slide 16: NIPSEA (NIPSEA China)
2-3．NIPSEA (NIPSEA China) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2022 FY2023 YoY FY2022 FY2023 YoY Quarterly performance (Tanshin) YoY 1Q 1Q (％) 1Q 1Q (Amount) (％) Automotive coatings 11.0 9.6 -12.8% 11.0 9.2 -1.9 -16.8% Decorative paints 79.3 93.2 17.6% 79.2 88.9 9.6 12.2% Revenue Ind
Slide 17: NIPSEA (Except NIPSEA China)
2-4．NIPSEA (Except NIPSEA China*1) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2022 FY2023 YoY FY2022 FY2023 YoY YoY Quarterly performance (Tanshin) 1Q *2 1Q *2 (％) 1Q *2 1Q *2 (Amount) (％) Revenue 57.3 69.5 21.2% 57.3 68.4 11.1 19.3% Operating profit 8.5 10.3 21.1% 8.5 9.4 0.9 10.5% OP mar
Slide 18: PT Nipsea (Indonesia) & Betek Boya (Türkiye)
2-5．PT Nipsea (Indonesia) & Betek Boya (Tϋrkiye) Results (Tanshin) Results (Non-GAAP) (Billion yen) PT Nipsea (Indonesia) FY2022 FY2023 YoY FY2022 FY2023 YoY YoY Betek Boya (Tϋrkiye) 1Q 1Q (％) 1Q 1Q (Amount) (％) Quarterly performance (Tanshin) Quarterly performance (Tanshin) Revenue 13.1 16.3 24.2%
Slide 19: DuluxGroup
2-6．DuluxGroup*1 (Billion yen) Results (Tanshin) Results (Non-GAAP) Quarterly performance (Tanshin) FY2022 FY2023 YoY FY2022 FY2023 YoY YoY 1Q 1Q (％) 1Q 1Q (Amount) (％) Decorative paints 44.3 53.1 20.0% 44.3 46.1 1.8 4.2% Industrial coatings 1.9 2.0 4.9% 1.9 1.9 -0.0 -1.9% Revenue Adjacencies busine
Slide 20: Cromology (Europe) & JUB (Europe)
2-7．Cromology (Europe) & JUB (Europe) Results (Tanshin) Results (Non-GAAP) (Billion yen) Cromology (Europe) FY2022 FY2023 YoY FY2022 FY2023 YoY YoY JUB (Europe) 1Q 1Q (％) 1Q 1Q (Amount) (％) Quarterly performance (Tanshin) Quarterly performance (Tanshin) Revenue 22.6 25.6 12.8% 22.6 23.5 0.9 3.9% Cro
Slide 21: Americas
2-8．Americas (Billion yen) Results (Tanshin) Results (Non-GAAP) Quarterly performance (Tanshin) FY2022 FY2023 YoY FY2022 FY2023 YoY YoY 1Q 1Q (％) 1Q 1Q (Amount) (％) Automotive coatings 7.0 9.2 32.2% 7.0 8.0 1.1 15.2% Decorative paints 14.3 13.8 -3.2% 14.3 12.2 -2.1 -14.5% Revenue Fine chemicals 0.4
Slide 22: Nippon Paint Holdings 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
Slide 23: Reference Data
FY2023 1Q Financial Results Presentation Material Reference Data May 15, 2023 Nippon Paint Holdings Co., Ltd. ーContentsー 1. Revenue & Operating Profit Transition by Segment (Former Reportable Segment) 2 2. Revenue & Operating Profit Transition by Segment (New Reportable Segment) 4 3. Revenue & Opera
Slide 24: Revenue & Operating Profit Transition by Segment (Former Reportable Segment)
1. Revenue & Operating Profit Transition by Segment (Former Reportable Segment) (Billion yen) FY2018 FY2019 FY2020*1 FY2021*1 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y Automotive 11.5 11.1 10.6 12.1 45.3 11.9 11.4 11.3 10.2 44.9 10.2 5.5 8.9 10.1 34.7 10.2 8.5 7.6 8.9 35.3 Deco
Slide 25: Revenue & Operating Profit Transition by Segment: Breakdown of Asia
1. Revenue & Operating Profit Transition by Segment (Former Reportable Segment) (Billion yen) FY2018 FY2019 FY2020*1 FY2021*1 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y Automotive 18.5 19.6 17.6 18.5 74.2 16.5 17.2 15.9 17.5 67.1 11.7 11.3 15.0 18.2 56.3 18.2 18.0 15.8 20.5 72.5
Slide 26: Transition by Segment (New Reportable Segment): Japan and DuluxGroup
2. Revenue & Operating Profit Transition by Segment (New Reportable Segment) (Billion yen) FY2021*1 FY2022*2 FY2023 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y 1Q Automotive 10.2 8.5 7.6 8.9 35.3 8.7 7.4 9.1 10.0 35.1 10.4 Decorative 9.9 11.9 11.4 12.1 45.4 10.4 12.8 11.9 12.7 47.8 11.1 Industrial 9.0 9.6 9.6 1
Slide 27: Transition by Segment (New Reportable Segment): NIPSEA
2. Revenue & Operating Profit Transition by Segment (New Reportable Segment) (Billion yen) FY2021*1 FY2022*2 FY2023 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y 1Q Automotive 18.6 18.4 16.0 21.0 74.1 21.2 20.3 24.5 30.5 96.5 21.8 Decorative 85.5 112.2 114.4 107.4 419.5 111.8 140.2 149.7 112.3 514.0 132.3 Industr
Slide 28: Revenue & Operating Profit Contribution from Acquired Companies
3. Revenue & Operating Profit Contribution from DuluxGroup, Cromology, JUB, Betek Boya and PT Nipsea (Billion yen) FY2020*1 FY2021*1 FY2022*1*2 FY2023*1 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y 1Q 2Q F/Y 4Q F/Y 1Q DuluxGroup Revenue 31.8 35.0 40.3 41.2 148.3 41.5 42.7 43.6 48.5 176.2 68.0 79.1 84.5 83.3 314.
Slide 29: Breakdown of Adjustments (FY2022 1Q vs. FY2023 1Q)
4. Breakdown of Adjustments (FY2022 1Q vs. FY2023 1Q) FY2022 1Q FY2023 1Q (Billion yen) M&A New M&A New Subsidy, Provison Subsidy, Provison for FX related acqui- Total FX related acqui- Total etc.*1 for bad debt etc.*1 bad debt expenses sitions expenses sitions Automotive - - - - - - - - - - - - Dec
Slide 30: Breakdown of Adjustments: NIPSEA
4. Breakdown of Adjustments (FY2022 1Q vs. FY2023 1Q) FY2022 1Q FY2023 1Q (Billion yen) M&A New M&A New Subsidy, Provison Subsidy, Provison for FX related acqui- Total FX related acqui- Total etc.*1 for bad debt etc.*1 bad debt expenses sitions expenses sitions Automotive 0.0 - - - - 0.0 1.3 - - - -
Slide 31: Key Financial Data
5. Key Financial Data ＜Capital Expenditure, Depreciation, R&D Expenses> FY2022 FY2023 (Billion yen) 1Q 1Q Property, plant and 11.4 7.8 Capital equipment expenditure Intangible assets 1.2 1.4 Total 12.6 9.2 Property, plant and 8.2 9.3 equipment Depreciation Intangible assets 2.6 2.7 Total 10.7 12.0 R
Slide 32: Key Market Data
6. Key Market Data <Paint sales volume> FY2020 FY2021 FY2022 FY2023 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y 1Q Japan*1 (10,000t) 40 36 38 42 156 40 40 40 41 161 39 39 38 40 155 23 *1 Source: Japan Paint Manufacturers Association; FY2023 1Q covers January and February <Automobile production*2