Nippon Paint Holdings Co., Ltd. · TSE:4612
Nippon Paint — Nippon Paint Hldgs — Q4 2021 Earnings Presentation
58 slides from Nippon Paint's earnings presentation, Feb 14, 2022
Slide 1: FY2021 4Q Financial Results Presentation Material
February 14, 2022 FY2021 4Q Financial Results Presentation Material
Slide 2: Contents
Contents 1. Summary/Topics ・・・ P.3 2. FY2021 4Q Highlights ・・・ P.14 3. FY2021 4Q Results (by Region) ・・・ P.17 4. FY2022 Forecast ・・・ P.27 5. FY2021 Results ・・・ P.35 -Highlights ・・・ P.35 -Results (by Region) ・・・ P.39 (Appendix)Reference Disclosure policy for this document: - Both reported base (‘Tans
Slide 3: Summary (1): FY2021 4Q Operating Results
1-1．Summary (1): FY2021 4Q Operating Results ・Revenue※ increased on a Tanshin basis due to strong growth of decorative business, new consolidation of the Indonesia business, and exchange rate changes. Operating profit※ declined due to higher prices of raw materials FY2021 4Q and recording a provisio
Slide 4: Summary (2): FY2021 Operating Results
1-1．Summary (2): FY2021 Operating Results ・Revenue reached record high on Tanshin basis due to strong growth of decorative business, new consolidation of the Indonesia business, and exchange rate changes. Operating profit was flat from a year earlier on FY2021 higher revenue and fixed cost savings,
Slide 5: Summary (3): FY2022 Forecast
1-1．Summary (3)： FY2022 Forecast※1 ・Both FY2022 revenue and operating profit are expected to reach record highs due to the strong decorative business performance and recovery of the FY2022 automotive market worldwide, although raw material prices are expected to continue to increase at least through
Slide 6: Summary (4): FY2022 Forecast (Cromology)
1-1．Summary (4)： FY2022 Forecast (Cromology) ※1 FY2020 FY2021 FY2022 ※2 ※2 (Billion yen) Results Results Forecast Revenue 83.3 91.9 +0-5% Operating Profit (ex IFRS16) 5.8 8.2 ※3 OP margin 6.9% 8.9% 7.5～8.5% EBITDA (ex IFRS16) 8.3 10.4 EBITDA margin 10.0% 11.4% 10.0～11.0% ※1 Exchange rate applied: EU
Slide 7: Summary (5): Raw material market conditions and impact on our operations
1-1．Summary (5): Raw material market conditions and impact on our operations Raw material market conditions and impact on our operations in 4Q 2021 ・Raw material prices continued to increase following the 3Q and remained high in all regions due to continuing disruptions in international logistics an
Slide 8: Major Topics (1): Company Split Involving NPHD and NPCS
1-2．Major Topics After Announcement of FY2021 3Q Results① Company Split Involving NPHD (holding company) and NPCS※1(functional company in Japan)(Jan. 2022) April 28, 2021 • Reexamined priorities and timing of investments and expenses based on Announced the Co-President structure current market condi
Slide 9: Major Topics (2)-(1): Secondary Offering of Shares
1-2．Major Topics After Announcement of FY2021 3Q Results② -(1) Secondary Offering of Shares (announced on January 7, 2022) Determination of offer price and other terms (announced on January 17, 2022) ■Overview and Main Objectives ・One of our management issues is to improve the liquidity※1 of our com
Slide 10: Major Topics (2)-(2): Offering summary and offer price
1-2．Major Topics After Announcement of FY2021 3Q Results② -(2) ■Offering summary Offering structure International offering Offering size (including Over-allotment) 157,766,300 shares of common stock Over-allotment 17,632,500 shares of common stock Sumitomo Mitsui Banking Corporation: 49,998,300 shar
Slide 11: Major Topics (3): IR website awards
1-2．Major Topics After Announcement of FY2021 3Q Results③ Our IR website won the Grand Prize of Daiwa IR 2021 Internet IR Awards and the Gold Title of Gomez IR Site Ranking 2021 (announced in December 2021) ■ Daiwa IR 2021 Internet IR Awards(selected by Daiwa Investor Relations Co. Ltd.) ・This award
Slide 12: Major Topics (4): Gold Brand in China Brand Index
1-2．Major Topics After Announcement of FY2021 3Q Results ④ Awarded the Gold Brand in the FY2021 China Brand Index (C-NPS) (announced on January 11, 2022) ・Chnbrand, a brand evaluation institution in China, published the 8th China Customer Recommendation Index ・Nippon Paint was ranked as the top pain
Slide 13: Major Topics (5): Selected Director Candidates
1-2．Major Topics After Announcement of FY2021 3Q Results ⑤ Selected Director Candidates(announced on February 7, 2022) ・The Nominating Committee selected director candidates to be submitted ■New director candidates at the 197th Annual General Meeting of Shareholders scheduled for March 29, 2022 Kirb
Slide 14: FY2021 4Q Highlights
2. FY2021 4Q Highlights Photo image: Cromology(Tollens Spain)
Slide 15: FY2021 4Q Highlights
2-1．FY2021 4Q Highlights Results(Tanshin) Results(Non-GAAP) (Billion yen) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY ※1 ※1 4Q 4Q (％) 4Q 4Q (Amount) (％) Revenue 216.0 262.0 21.3% 216.1 233.5 17.5 8.1% Operating profit 23.5 21.5 -8.6% 21.7 16.6 -5.1 -23.6% OP margin 10.9% 8.2% -2.7pt 10.1% 7.1% - -2.9pt
Slide 16: FY2021 4Q Highlights (Revenue & Operating Profit by Region)
2-2．FY2021 4Q Highlights (Revenue & Operating Profit by Region) Results(Tanshin) Results(Non-GAAP) (Billion yen) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 4Q 4Q (％) 4Q 4Q (Amount) (％) Revenue 44.7 42.1 -5.9% 44.7 42.1 -2.6 -5.9% Japan OP profit※1 5.2 1.6 -69.8% 5.2 1.6 -3.6 -69.6% Revenue 102.1 139.9
Slide 17: FY2021 4Q Results (by Region)
3. FY2021 4Q Results (by Region) Photo image: NIPSEA
Slide 18: Market & Business Environment (4Q)
3-1．Market & Business Environment (4Q) 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 th
Slide 19: Operating Profit Gap Analysis for FY2021 4Q
3-2．Operating Profit Gap Analysis for FY2021 4Q (Billion yen) Major reasons for changes ✓NIPSEA China ： Lower profit due to an increase in RMCC ratio, driven mainly by higher prices of raw materials ✓Asia Excepting ： Lower profit due to an overall increase in RMCC ratio, although the degree of COVID
Slide 20: 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 4Q 4Q (％) 4Q 4Q (Amount) (％) Automotive coatings 10.1 8.9 -11.4% 10.1 8.9 -1.2 -11.4% Decorative paints 11.7 12.1 3.4% 11.7 12.1 0.4 3
Slide 21: Analysis of Regional Performance (NIPSEA China)
3-4．Analysis of Regional Performance (NIPSEA China) Results(Tanshin) Results(Non-GAAP) Quarterly performance (Tanshin) (Billion yen) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 4Q 4Q (％) 4Q 4Q (Amount) (％) Automotive coatings 10.2 10.7 4.7% 10.3 9.5 -0.8 -7.5% Decorative paints 59.5 78.1 31.2% 59.6 68.9
Slide 22: Analysis of Regional Performance (Asia Excepting NIPSEA China)
3-5．Analysis of Regional Performance (Asia Excepting NIPSEA China) ※ Quarterly performance (Tanshin) Results(Tanshin) Results(Non-GAAP) (Billion yen) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 4Q 4Q (％) 4Q 4Q (Amount) (％) Revenue 26.6 43.8 64.6% 26.6 28.8 2.2 8.2% Operating profit 4.8 7.0 47.5% 4.7 3.6
Slide 23: Analysis of Regional Performance (Asia: Indonesia)
3-6．Analysis of Regional Performance (Asia: Indonesia) Results(Tanshin) Results(Non-GAAP) Quarterly performance (Tanshin) (Billion yen) FY2020 FY2021 YoY FY2020 FY2021 YoY YoY 4Q 4Q (％) 4Q 4Q (Amount) (％) Revenue - 11.7 - - - - - Operating profit - 4.1 - - - - - OP margin - 35.4% - - - - - ※1 OP mar
Slide 24: 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 4Q 4Q (％) 4Q 4Q (Amount) (％) Decorative paints 21.1 25.3 19.6% 21.1 23.1 1.9 9.2% Industrial coatings 1.5 2.0 30.2% 1.5 1.8 0.3 19.0
Slide 25: 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 4Q 4Q (％) 4Q 4Q (Amount) (％) Automotive coatings 6.2 5.5 -11.0% 6.2 5.0 -1.2 -19.2% Decorative paints 11.3 12.9 14.2% 11.3 11.7 0.4
Slide 26: 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 4Q 4Q (％) 4Q 4Q (Amount) (％) Automotive coatings※1 0.5 0.5 -11.3% 0.5 0.6 0.1 13.9% Decorative paints 4.8 6.2 28.6% 4.8 8.2 3.3 68.5%
Slide 27: FY2022 Forecast
4. FY2022 Forecast Photo image: Betek Boya(Filli Boya)
Slide 28: FY2022 Forecast
4-1. FY2022 Forecast (Billion yen) Tanshin Overview of FY2022 FY2021 FY2022 YoY YoY ・Revenue and operating profit from existing businesses Results Forecast (Amount) (%) is expected to reach record highs due to continuing Revenue 998.3 1,200.0 201.7 20.2% growth in decorative business and recovery of
Slide 29: FY2022 Forecast: Quarterly Revenue and Earnings Growth Image
4-1. FY2022 Forecast: Quarterly Revenue and Earnings Growth Image (Billion yen) 222.7 259.1 254.5 262.0 Revenue FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 1Q 1Q 2Q 2Q 3Q 3Q 4Q 4Q Operating 24.7 24.3 17.1 21.5 profit FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 1Q 1Q 2Q 2Q 3Q
Slide 30: Market & Business Environment (FY2022)
4-2. Market & Business Environment (FY2022) Japan Asia (NIPSEA China) Oceania Americas Automotive Decorative DIY Project ■ Market (YoY) Strong Weak Market analysis ✓Automotive : In Japan and Americas, expect automobile production to increase significantly from 2021 due to progress in elimination of
Slide 31: Assumptions for FY2022 Forecast (1): Japan, NIPSEA China
4-3. Assumptions for FY2022 Forecast(1) Japan FY2022 Forecast Qualitative Information Revenue +10～15% Expect revenue growth assuming progress with ending semiconductor chip and parts Automotive +10～15% shortages and a rebound in automobile production Expect revenue growth that outpaces market growth
Slide 32: Assumptions for FY2022 Forecast (2): Asia, Oceania
4-3. Assumptions for FY2022 Forecast(2) Asia Excepting NIPSEA China FY2022 Forecast Qualitative Information Expect revenue growth in automotive coatings due to progress in elimination of semiconductor and chip shortages and rebound in automobile production. Asia Excepting Expect revenue growth in de
Slide 33: Assumptions for FY2022 Forecast (3): Americas, Other
4-3. Assumptions for FY2022 Forecast(3) Americas FY2022 Forecast Qualitative Information Revenue c. +10% Expect revenue growth due to progress in ending semiconductor chip and parts shortages Automotive +15～20% and a rebound in automobile production Expect revenue growth due to steady demand driven
Slide 34: Assumptions for FY2022 Forecast (4)
4-3. Assumptions for FY2022 Forecast(4) FY2022 Forecast FY2021 Results Revenue Full Year Growth Rate※1 (YoY) Full Year (Billion yen) Japan +10～15% 164.6 Automotive +10～15% 35.3 Decorative c. +10% 45.4 Industrial +10～15% 38.1 NIPSEA China +10～15% 379.1 Decorative(DIY) +10～15% 312.4 Decorative(Project
Slide 35: Reference: FY2021 Results - Highlights
5-(1) Reference: FY2021 Results - Highlights
Slide 36: FY2021 Highlights
5-(1)-1．FY2021 Highlights Results(Tanshin) Results(Non-GAAP) (Billion yen) YoY ※1 YoY YoY FY2020※1 FY2021 (％) FY2020 FY2021 (Amount) (％) Revenue 772.6 998.3 29.2% 772.4 900.2 127.9 16.6% Operating profit 87.6 87.6 0.0% 84.7 76.2 -8.4 -9.9% OP margin 11.3% 8.8% -2.6pt 11.0% 8.5% - -2.5pt EBITDA 117.3
Slide 37: Operating Profit Gap Analysis for FY2021
5-(1)-2．Operating Profit Gap Analysis for FY2021 (Billion yen) Major reasons for changes ✓NIPSEA China ： Lower profit due to higher RMCC ratio mainly attributable to higher cost of raw materials, despite recovery from COVID downturn in FY2020 and consistent market strengths ✓Asia Excepting ： Higher
Slide 38: FY2021 Highlights (Revenue & Operating Profit by Region)
5-(1)-3．FY2021 Highlights (Revenue & Operating Profit by Region) Results(Tanshin) Results(Non-GAAP) (Billion yen) YoY YoY YoY FY2020 FY2021 FY2020 FY2021 (％) (Amount) (％) Revenue 162.0 164.6 1.6% 162.0 164.6 2.6 1.6% Japan OP profit※1 16.1 10.3 -36.2% 15.9 10.4 -5.5 -34.5% Revenue 354.5 530.2 49.6%
Slide 39: Reference: FY2021 Results - By Region
5-(2) Reference: FY2021 Results - By Region
Slide 40: FY2021 Analysis of Regional Performance (Japan)
5-(2)-1． FY2021 Analysis of Regional Performance (Japan) Results(Tanshin) Results(Non-GAAP) (Billion yen) YoY YoY YoY FY2020 FY2021 FY2020 FY2021 (％) (Amount) (％) Automotive coatings 34.7 35.3 1.8% 34.7 35.3 0.6 1.8% Decorative paints 43.7 45.4 3.9% 43.7 45.4 1.7 3.9% Industrial coatings 35.3 38.1 8
Slide 41: FY2021 Analysis of Regional Performance (NIPSEA China)
5-(2)-2．FY2021 Analysis of Regional Performance (NIPSEA China) Results(Tanshin) Results(Non-GAAP) (Billion yen) YoY YoY YoY FY2020 FY2021 FY2020 FY2021 (％) (Amount) (％) Automotive coatings 31.8 38.4 20.8% 31.7 34.5 2.8 8.7% Decorative paints 216.0 312.4 44.7% 215.8 281.2 65.4 30.3% Revenue Industria
Slide 42: FY2021 Analysis of Regional Performance (Asia Excepting NIPSEA China)
5-(2)-3．FY2021 Analysis of Regional Performance (Asia Excepting NIPSEA China) Results(Tanshin) ※ Results(Non-GAAP) (Billion yen) YoY YoY YoY FY2020 FY2021 FY2020 FY2021 (％) (Amount) (％) Revenue 86.4 151.1 74.9% 86.4 101.9 15.5 17.9% Operating profit 11.4 25.0 119.2% 11.1 13.6 2.5 22.8% OP margin 13.
Slide 43: FY2021 Analysis of Regional Performance (Asia: Indonesia)
5-(2)-4．FY2021 Analysis of Regional Performance (Asia: Indonesia) Results(Tanshin) Results(Non-GAAP) (Billion yen) YoY YoY YoY FY2020 FY2021 FY2020 FY2021 (％) (Amount) (％) Revenue - 39.5 - - - - - Operating profit - 11.8 - - - - - OP margin - 29.7% - - - - - OP margin※ - 33.9% - - - - - Main reasons
Slide 44: FY2021 Analysis of Regional Performance (Oceania)
5-(2)-5．FY2021 Analysis of Regional Performance (Oceania) Results(Tanshin) Results(Non-GAAP) (Billion yen) YoY YoY YoY FY2020 FY2021 FY2020 FY2021 (％) (Amount) (％) Decorative paints 77.1 90.4 17.2% 77.1 80.6 3.5 4.5% Industrial coatings 5.7 7.4 30.0% 5.7 6.6 0.9 15.9% Revenue Paint related business
Slide 45: FY2021 Analysis of Regional Performance (Americas)
5-(2)-6．FY2021 Analysis of Regional Performance (Americas) Results(Tanshin) Results(Non-GAAP) (Billion yen) YoY YoY YoY FY2020 FY2021 FY2020 FY2021 (％) (Amount) (％) Automotive coatings 21.1 23.3 10.8% 21.1 22.4 1.3 6.2% Decorative paints 46.5 51.8 11.5% 46.5 50.0 3.5 7.5% Revenue Fine chemicals 2.4
Slide 46: FY2021 Analysis of Regional Performance (Other)
5-(2)-7．FY2021 Analysis of Regional Performance (Other) Results(Tanshin) Results(Non-GAAP) (Billion yen) YoY YoY YoY FY2020 FY2021 FY2020 FY2021 (％) (Amount) (％) Automotive coatings※1 1.4 1.6 11.9% 1.4 2.0 0.5 36.5% Decorative paints 21.0 27.1 29.1% 21.0 33.0 12.1 57.5% Industrial coatings 3.7 5.0 3
Slide 47: 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 48: FY2021 4Q Financial Results Presentation Material Reference
FY2021 4Q Financial Results Presentation Material Reference February 14, 2022 Nippon Paint Holdings Co. Ltd. ーContentsー 1. Revenue & Operating Profit Transition by Region 2 2. Revenue and Operating Profit Contribution from DuluxGroup, Betek Boya and PT Nipsea 4 3. Breakdown of Adjustments (FY2020 4Q
Slide 49: 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 4Q Full Year 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 Decorativ
Slide 50: Revenue & Operating Profit Transition by Region: Breakdown of Asia
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 4Q Full Year 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 Deco
Slide 51: Revenue and Operating Profit Contribution from DuluxGroup, Betek Boya and PT Nipsea
2.Revenue and Operating Profit Contribution from DuluxGroup, Betek Boya and PT Nipsea (Billion yen) FY2019※1 FY2020※1 FY2021※1 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year Revenue 13.1 34.4 47.6 31.8 35.0 40.3 41.2 148.3 41.5 42.7 43.6 48.5 176.2 DuluxGroup Before Operating prof
Slide 52: Breakdown of Adjustments (FY2020 4Q vs. FY2021 4Q)
3. Breakdown of Adjustments (FY2020 4Q vs. FY2021 4Q) (Billion yen) FY2020 4Q FY2021 4Q M&A New Subsidy, M&A Provison New FX Subsidy related acqui- Total FX related for bad acqui- Total expenses sitions etc.※1 expenses debt sitions Automotive - - - - - - - - - - - Decorative - - - - - - - - - - - In
Slide 53: Breakdown of Adjustments (FY2020 4Q vs. FY2021 4Q): Asia
3. Breakdown of Adjustments (FY2020 4Q vs. FY2021 4Q) (Billion yen) FY2020 4Q FY2021 4Q M&A New Subsidy, M&A Provison New FX Subsidy related acqui- Total FX related for bad acqui- Total expenses sitions etc.※1 expenses debt sitions Automotive -0.0 - - - -0.0 1.8 - - - 1.8 3.6 Decorative -0.1 - - - -
Slide 54: Breakdown of Adjustments (FY2020 vs. FY2021)
4. Breakdown of Adjustments (FY2020 vs. FY2021) (Billion yen) FY2020 FY2021 M&A New Subsidy, M&A Provison New FX Subsidy related acqui- Total FX related for bad acqui- Total expenses sitions etc.※1 expenses debt sitions Automotive - - - - - - - - - - - Decorative - - - - - - - - - - - Industrial - -
Slide 55: Breakdown of Adjustments (FY2020 vs. FY2021): Asia
4. Breakdown of Adjustments (FY2020 vs. FY2021) (Billion yen) FY2020 FY2021 M&A New Subsidy, M&A Provison New FX Subsidy related acqui- Total FX related for bad acqui- Total expenses sitions etc.※1 expenses debt sitions Automotive 0.0 - - - 0.0 5.4 - - - 5.7 11.1 Decorative 0.2 - - - 0.2 33.7 - - -
Slide 56: Statement of Financial Position
5. Statement of Financial Position (Billion yen) As of As of As of As of Increase / Increase / Assets Dec. 31, Dec. 31, Decrease Liabilities and equity Dec. 31, Dec. 31, Decrease 2020 2021 2020 2021 Total current assets 643.5 600.7 -42.8 Total liabilities 915.6 986.4 70.8 Cash and cash equivalents 2
Slide 57: Key Financial Data
6. Key Financial Data ＜Capital Expenditure, Depreciation, R&D Expenses> FY2020 FY2020 FY2021 FY2021 (Billion yen) 4Q Full Year 4Q Full Year Property, plant and equipment 7.6 35.3 13.8 45.5 Capital Intangible assets 1.1 2.7 2.6 4.7 expenditure Total 8.7 38.0 16.4 50.2 Property, plant and equipment 6.
Slide 58: Market Conditions
7. Market Conditions <Paint sales volume> 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 4Q Full Year ※1 Japan (10,000t) 44 43 44 47 178 43 43 43 43 172 40 36 38 42 156 40 40 40 28 148 ※1 Source: Japan Paint Manufacturers Association; FY2021 4Q