Nippon Paint Holdings Co., Ltd. · TSE:4612
Nippon Paint — Nippon Paint Hldgs — Q3 2021 Earnings Presentation
46 slides from Nippon Paint's earnings presentation, Nov 12, 2021
Slide 1: FY2021 3Q Financial Results Presentation Material
November 12, 2021 FY2021 3Q Financial Results Presentation Material
Slide 2: Contents
Contents 1. Summary of Today’s Presentation/Topics ・・・ P.3 2. FY2021 3Q Highlights ・・・ P.11 3. FY2021 3Q Results (by Region) ・・・ P.14 4. FY2021 Forecast ・・・ P.24 5. FY2021 9 Month Results ・・・ P.28 (Appendix) Reference Disclosure policy for this document: - Both reported base (‘Tanshin’) and adjusted
Slide 3: Summary of Today's Presentation (1)
1-1．Summary of Today’s Presentation (1) ・Revenue increased on a Tanshin basis due to the strong growth of decorative and the new consolidation of the Indonesia business. Operating profit decreased due to the cost of raw materials and a provision at NIPSEA FY2021 3Q China(The analysis below is based
Slide 4: Summary of Today's Presentation (2)
1-1．Summary of Today’s Presentation (2) Prior year adjustments following the classification of discontinued operations ・Classified the European automotive business, which was reported under the Other segment and two India businesses, which were reported under Asia Excepting NIPSEA China, as disconti
Slide 5: Summary of Today's Presentation (3)
1-1．Summary of Today’s Presentation (3) Raw material market conditions and impact on our operations in 3Q 2021 ・The supply and prices of raw materials were impacted in all regions due to continuing disruptions in international logistics and problems at some factories ・Prices of raw materials remaine
Slide 6: Major Topics After FY2021 2Q Results ①②
1-2．Major Topics After Announcement of FY2021 2Q Results ①② Published the Integrated Report 2021 (released on September 30) ・New content and design from the previous year’s report to convey the growth potential of the paint industry and appeal of the Nippon Paint Group ・The report has messages of th
Slide 7: Major Topics ③ Acquisition of Cromology by DuluxGroup
1-2．Major Topics After Announcement of FY2021 2Q Results ③ Acquisition of Cromology by DuluxGroup (announced on October 20) ・Decided to acquire the shares of Cromology Holding SAS, a European company manufacturing and selling decorative paints and paint-related products, and its subsidiaries ・A stro
Slide 8: Major Topics ④ Acquisition of DP JUB by DuluxGroup
1-2．Major Topics After Announcement of FY2021 2Q Results ④ Acquisition of DP JUB by DuluxGroup(announced on October 29) ・Decided to acquire shares of DP JUB and its subsidiaries, etc., which are engaged in the manufacture and sale of decorative and ETICS in Europe ・With net sales of around ¥15.0 bn,
Slide 9: Major Topics ⑤ Full Ownership of Chinese Automotive Coatings Subsidiaries
1-2．Major Topics After Announcement of FY2021 2Q Results ⑤ Acquisition of full ownership of Chinese consolidated automotive coatings subsidiaries (announced on November 2) ・We are continuing to integrate the automotive businesses in Asia following the acquisition of 100% ownership of the Asian JVs a
Slide 10: Major Topics ⑥ Organizational Structure from January 2022
1-2．Major Topics After Announcement of FY2021 2Q Results ⑥ Organizational structure from January 2022 (announced on October 28) ① Establish Nippon Paint Corporate Solutions (NPCS) ② Senior Executives Structure (January 2022) (from January 2022) 1. NPCS will provide support at a higher level and with
Slide 11: FY2021 3Q Highlights
2. FY2021 3Q Highlights Photo image: From the new Nippon Paint Group TV commercial ”Nippon Paint Town –The World is Constantly Filled with Colors”
Slide 12: FY2021 3Q Highlights
2-1．FY2021 3Q Highlights Results(Tanshin) Results(Non-GAAP) (Billion yen) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY ※1 ※1 3Q 3Q (％) 3Q 3Q (Amount) (％) Revenue 214.4 254.5 18.7% 214.3 230.5 16.2 7.6% Operating profit 28.9 17.3 -40.1% 28.7 17.4 -11.3 -39.4% OP margin 13.5% 6.8% -6.7pt 13.4% 7.5% - -5.8p
Slide 13: FY2021 3Q Highlights (Revenue & Operating Profit by Region)
2-2．FY2021 3Q Highlights (Revenue & Operating Profit by Region) Results(Tanshin) Results(Non-GAAP) (Billion yen) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 3Q 3Q (％) 3Q 3Q (Amount) (％) Revenue 40.3 40.0 -0.8% 40.3 40.0 -0.3 -0.8% Japan OP profit※1 4.1 1.4 -66.1% 3.9 1.5 -2.4 -61.2% Revenue 102.7 139.7
Slide 14: FY2021 3Q Results (by Region)
3. FY2021 3Q Results (by Region) Photo image: DuluxGroup/Colour Forecast 2022 “Wonder”
Slide 15: Market & Business Environment (3Q)
3-1．Market & Business Environment (3Q) 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 and Americas, weaker market conditions due to the
Slide 16: Operating Profit Gap Analysis for FY2021 3Q
3-2．Operating Profit Gap Analysis for FY2021 3Q (Billion yen) Gap(Non-GAAP) -11.3 Major reasons for changes ✓NIPSEA China ： Lower profit due to a significant increase in the RMCC ratio driven mainly by higher prices of raw materials ✓Asia Excepting ： Lower profit due to an overall increase in the RM
Slide 17: Analysis of Regional Performance (Japan)
3-3．Analysis of Regional Performance (Japan) Results(Tanshin) Results(Non-GAAP) Quarterly performance (Tanshin) (Billion yen) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 3Q 3Q (％) 3Q 3Q (Amount) (％) Automotive coatings 8.9 7.6 -13.9% 8.9 7.6 -1.2 -13.9% Decorative paints 10.6 11.4 8.1% 10.6 11.4 0.9 8.1
Slide 18: Analysis of Regional Performance (NIPSEA China)
3-4．Analysis of Regional Performance (NIPSEA China) Results(Tanshin) Results(Non-GAAP) Quarterly performance (Tanshin) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY (Billion yen) (％) (Amount) (％) 3Q 3Q 3Q 3Q Automotive coatings 8.5 8.6 0.3% 8.5 7.6 -0.9 -10.4% Decorative paints 65.2 92.1 41.3% 65.1 82.6 1
Slide 19: Analysis of Regional Performance (Asia Excepting NIPSEA China)
3-5．Analysis of Regional Performance (Asia Excepting NIPSEA China) Results(Tanshin) ※ Results(Non-GAAP) Quarterly performance (Tanshin) (Billion yen) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 3Q 3Q (％) 3Q 3Q (Amount) (％) Revenue 23.2 32.0 38.3% 23.2 21.5 -1.7 -7.2% Operating profit 3.7 3.4 -7.1% 3.6 1
Slide 20: Analysis of Regional Performance (Asia: Indonesia)
3-6．Analysis of Regional Performance (Asia: Indonesia) Quarterly performance (Tanshin) Results(Tanshin) Results(Non-GAAP) (Billion yen) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 3Q 3Q (％) 3Q 3Q (Amount) (％) Revenue - 8.1 - - - - - Operating profit - 2.0 - - - - - OP margin - 24.1% - - - - - ※1 OP marg
Slide 21: Analysis of Regional Performance (Oceania)
3-7．Analysis of Regional Performance (Oceania) Results(Tanshin) Results(Non-GAAP) Quarterly performance (Tanshin) (Billion yen) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 3Q 3Q (％) 3Q 3Q (Amount) (％) Decorative paints 20.0 22.0 9.9% 20.0 20.8 0.7 3.5% Industrial coatings 1.6 1.9 17.6% 1.6 1.8 0.2 10.3%
Slide 22: Analysis of Regional Performance (Americas)
3-8．Analysis of Regional Performance (Americas) Results(Tanshin) Results(Non-GAAP) Quarterly performance (Tanshin) (Billion yen) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 3Q 3Q (％) 3Q 3Q (Amount) (％) Automotive coatings 6.4 5.5 -13.1% 6.4 5.2 -1.2 -18.4% Decorative paints 12.4 13.4 8.6% 12.4 12.8 0.4
Slide 23: Analysis of Regional Performance (Other)
3-9．Analysis of Regional Performance (Other) Results(Tanshin) Results(Non-GAAP) Quarterly performance (Tanshin) (Billion yen) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 3Q 3Q (％) 3Q 3Q (Amount) (％) Automotive coatings※1 0.4 0.3 -26.3% 0.4 0.3 -0.1 -21.1% Decorative paints 6.8 6.6 -2.9% 6.8 7.4 0.5 7.9%
Slide 24: FY2021 Forecast
4. FY2021 Forecast Photo image: NIPSEA/Trend Beyond colours “POP LIFE”
Slide 25: FY2021 Forecast
4-1. FY2021 Forecast Tanshin Tanshin (Billion yen) FY2021 Forecast FY2020 FY2021 4Q YoY YoY (as of Oct. 12) 4Q Results Forecast※1 (Amount) (%) Revenue 1,000.0 Revenue 216.0 263.7 47.8 22.1% Operating profit 85.0 Operating profit 23.8 13.3 -10.5 -44.3% (before Asian JV acquisition costs, etc.) OP mar
Slide 26: Market Environment (FY2021 4Q)
4-2．Market Environment (FY2021 4Q) Japan Asia (NIPSEA China) Oceania Americas Automotive Decorative DIY Project ■ Market (YoY) Strong Weak Market analysis ✓Automotive : Market conditions are expected to be weaker compared to 4Q 2020 in every operating region due to the continuing impact of the semic
Slide 27: Assumptions for FY2021 Forecast
4-3．Assumptions for FY2021 Forecast FY2021 Forecast FY2020 Results※1 Full Year Growth Rate 4Q Growth Rate Full Year 4Q Revenue (YoY)※2 (YoY)※2 (Billion yen) (Billion yen) Japan ±0% -15～-10% 162.0 44.7 Automotive ±0% c. -20% 34.9 10.1 Decorative c. +5% +0～5% 43.7 11.7 Industrial c. +10% c. +5% 35.3 9
Slide 28: FY2021 9 Month Results
5. F¥Y2021 9 Month Results
Slide 29: FY2021 9 Month Highlights
5-1．FY2021 9 Month Highlights Results(Tanshin) Results(Non-GAAP) (Billion yen) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 9 month 9 month (％) 9 month 9 month (Amount) (％) Revenue 556.6 736.3 32.3% 556.3 666.7 110.4 19.8% Operating profit 64.7 66.7 3.2% 63.6 60.2 -3.3 -5.2% OP margin 11.6% 9.1% -2.6pt 1
Slide 30: Operating Profit Gap Analysis for FY2021 9 Month
5-2．Operating Profit Gap Analysis for FY2021 9 Month (Billion yen) Gap(Non-GAAP) -3.3 30
Slide 31: FY2021 9 Month Highlights (Revenue & Operating Profit by Region)
5-3．FY2021 9 Month Highlights (Revenue & Operating Profit by Region) Results(Tanshin) Results(Non-GAAP) (Billion yen) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 9 month 9 month (％) 9 month 9 month (Amount) (％) Revenue 117.3 122.5 4.5% 117.3 122.5 5.2 4.5% Japan OP profit※1 10.9 8.7 -20.2% 10.7 8.8 -1.9
Slide 32: Analysis of Regional Performance (Japan & NIPSEA China)
5-4．Analysis of Regional Performance (Japan & NIPSEA China) (Billion yen) Results(Tanshin) Results(Non-GAAP) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 9 month 9 month (％) 9 month 9 month (Amount) (％) Automotive coatings 24.6 26.4 7.2% 24.6 26.4 1.8 7.2% Decorative paints 32.0 33.2 4.0% 32.0 33.2 1.3 4
Slide 33: Analysis of Regional Performance (Asia Excepting NIPSEA China & Indonesia)
5-5．Analysis of Regional Performance (Asia Excepting NIPSEA China & Indonesia) (Billion yen) Results(Tanshin) ※1 Results(Non-GAAP) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY Asia 9 month 9 month (％) 9 month 9 month (Amount) (％) Excepting Revenue 59.8 107.3 79.5% 59.8 73.1 13.3 22.3% Operating profit 6.
Slide 34: Analysis of Regional Performance (Oceania & Americas)
5-6．Analysis of Regional Performance (Oceania & Americas) (Billion yen) Results(Tanshin) Results(Non-GAAP) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 9 month 9 month (％) 9 month 9 month (Amount) (％) Decorative paints 56.0 65.1 16.3% 56.0 57.5 1.5 2.7% Industrial coatings 4.1 5.4 29.9% 4.1 4.8 0.6 14.8%
Slide 35: Analysis of Regional Performance (Other)
5-7．Analysis of Regional Performance (Other) (Billion yen) Results(Tanshin) Results(Non-GAAP) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 9 month 9 month (％) 9 month 9 month (Amount) (％) Automotive coatings※1 0.9 1.1 25.8% 0.9 1.3 0.4 50.0% Decorative paints 16.1 20.9 29.2% 16.1 24.9 8.7 54.1% Industria
Slide 36: 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 37: FY2021 3Q Financial Results Presentation Material Reference
FY2021 3Q Financial Results Presentation Material Reference November 12, 2021 Nippon Paint Holdings Co. Ltd. ーContentsー 1. Revenue & Operating Profit Transition by Region 2 2. Breakdown of Adjustments (FY2020 3Q vs. FY2021 3Q) 4 3. Breakdown of Adjustments (FY2020 9 month vs. FY2021 9 month) 6 4. St
Slide 38: Revenue & Operating Profit Transition by Region
1. Revenue & Operating Profit Transition by Region (Billion yen) FY2018 FY2019 FY2020 ※1 FY2021 ※1 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 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 Decorative 10.6 12.0 11.2 13.
Slide 39: Revenue & Operating Profit Transition by Region
1. Revenue & Operating Profit Transition by Region (Billion yen) FY2018 FY2019 FY2020 ※1 FY2021 ※1 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 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 Decorative 54.6 62.2 64.0
Slide 40: Breakdown of Adjustments (FY2020 3Q vs. FY2021 3Q)
2. Breakdown of Adjustments (FY2020 3Q vs. FY2021 3Q) (Billion yen) FY2020 3Q FY2021 3Q M&A New M&A Provison New FX Subsidy related acqui- Total FX Subsidy related for bad acqui- Total cost sitions cost debt sitions Automotive - - - - - - - - - - - Decorative - - - - - - - - - - - Industrial - - - -
Slide 41: Breakdown of Adjustments (FY2020 3Q vs. FY2021 3Q)
2. Breakdown of Adjustments (FY2020 3Q vs. FY2021 3Q) (Billion yen) FY2020 3Q FY2021 3Q M&A New M&A Provison New FX Subsidy related acqui- Total FX Subsidy related for bad acqui- Total cost sitions cost debt sitions Automotive 0.0 - - - 0.0 1.2 - - - 1.3 2.6 Decorative 0.1 - - - 0.1 10.0 - - - 6.5 1
Slide 42: Breakdown of Adjustments (FY2020 9 month vs. FY2021 9 month)
3. Breakdown of Adjustments (FY2020 9 month vs. FY2021 9 month) (Billion yen) FY2020 9 month FY2021 9 month M&A New M&A Provison New FX Subsidy related acqui- Total FX Subsidy related for bad acqui- Total cost sitions cost debt sitions Automotive - - - - - - - - - - - Decorative - - - - - - - - - -
Slide 43: Breakdown of Adjustments (FY2020 9 month vs. FY2021 9 month)
3. Breakdown of Adjustments (FY2020 9 month vs. FY2021 9 month) (Billion yen) FY2020 9 month FY2021 9 month M&A New M&A Provison New FX Subsidy related acqui- Total FX Subsidy related for bad acqui- Total cost sitions cost debt sitions Automotive 0.0 - - - 0.0 3.7 - - - 3.9 7.5 Decorative 0.2 - - -
Slide 44: Statement of Financial Position
4. Statement of Financial Position (Billion yen) As of As of As of As of Increase / Increase / Assets Dec. 31, Sep. 30, Decrease Liabilities and equity Dec. 31, Sep. 30, Decrease 2020 2021 2020 2021 Total current assets 643.5 605.4 -38.1 Total liabilities 915.6 984.8 69.3 Cash and cash equivalents 2
Slide 45: Key Financial Data
5. Key Financial Data ＜Capital Expenditure, Depreciation, R&D Expenses> FY2020 FY2021 (Billion yen) 3Q 3Q Property, plant and equipment 27.7 31.7 Capital Intangible assets 2.3 2.8 expenditure Total 30.0 34.4 Property, plant and equipment 16.9 20.3 Depreciation Intangible assets 4.6 5.1 Total 21.6 25
Slide 46: Market Conditions
6. Market Conditions <Paint shipment> FY2018 FY2019 FY2020 FY2021 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q Japan※1(10,000t) 44 43 44 47 178 43 43 43 43 172 40 36 38 42 157 40 40 26 ※1 Source: Japan Paint Manufacturers Association; FY2021 3Q covers July and August <A