Nippon Paint Holdings Co., Ltd. · TSE:4612
Nippon Paint — Nippon Paint Hldgs — Q4 2024 Earnings Presentation
35 slides from Nippon Paint's earnings presentation, Feb 14, 2025
Slide 1: FY2024 4Q Financial Results Presentation Material
February 14, 2025 FY2024 4Q Financial Results Presentation Material FY2024 4Q Summary/Topics P.3 Supplemental Material P.13 1. FY2024 4Q Results: Highlights P.14 2. FY2024 4Q Results: By Segment P.17 3. FY2024 Results P.27 (Appendix) Reference Data
Slide 2: Supplementary Information
Supplementary Information Analysis of operating results In this document, we present our operating results in two formats: the reported basis (“Tanshin”) and the adjusted basis (“Non-GAAP”). The analysis of factors contributing to changes primarily utilize Non-GAAP data, except for QoQ analysis • Th
Slide 3: FY2024 4Q Operating Results: Record Revenue and Operating Profit Achieved
1. FY2024 4Q Operating Results: Record Revenue and Operating Profit Achieved ◆ Tanshin FY2024 4Q • Revenue saw substantial growth, increasing by +16.6%, primarily driven by volume growth, especially in the decorative business, along with FX impact and contributions from new consolidations • Operatin
Slide 4: FY2024 Operating Results: Record-High Revenue and Operating Profit
2. FY2024 Operating Results: Record-High Revenue and Operating Profit ◆ Tanshin FY2024 • [Record-High Revenue] Revenue grew 13.6%, surpassing the FY2024 guidance (¥1,600 bn) announced in February 2024 by c. 2.4%, driven by volume growth, particularly in the decorative business, growth in the adjacen
Slide 5: FY2025 Guidance: Revenue and Operating Profit to Hit New Highs, Even Without AOC
3. FY2025 Guidance: Revenue and Operating Profit to Hit New Highs, Even Without AOC ◆ Summary FY2025 Guidance • Guidance does not include AOC’s earnings and acquisition-related expenses. A revision to the FY2025 guidance anticipated following detailed examination post closing (excl. AOC) • In FY2025
Slide 6: Assumptions for FY2025 Forecast (1)
4. Assumptions for FY2025 Forecast (1) (Billion yen) Revenue OP margin Overview FY2024 results FY2025 forecast FY2024 results FY2025 forecast (Tanshin/bn yen) (In LCY) (Tanshin/%) (In LCY)*1 Segment total 203.1 +5~10% 9.6% → Expecting revenue growth driven by earnings improvement initiatives, despit
Slide 7: Assumptions for FY2025 Forecast (2)
4. Assumptions for FY2025 Forecast (2) (Billion yen) Revenue OP margin Overview FY2024 results FY2025 forecast FY2024 results FY2025 forecast (Tanshin/bn yen) (In LCY) (Tanshin/%) (In LCY)*1 Segment total 369.2 +5~10% 17.2% ↘ Malaysia Grp. Driving total coating and construction solutions, building b
Slide 8: Raw Material Market Conditions and Operational Impact
5. Raw Material Market Conditions and Operational Impact With price variations across regions and raw materials, significant fluctuation in the RMCC ratio not anticipated FY2024 4Q FY2025 1Q and beyond • Crude oil prices have declined by 6% and naphtha spot prices by 3% since the end of • As of the
Slide 9: Market & Business Environment
6. Market & Business Environment DGL DGL Japan NIPSEA China Americas (Pacific) (Europe) Automotive FY2024 4Q Decorative TUC TUB Automotive FY2025 1Q (outlook) Decorative TUC TUB Automotive FY2025 (outlook) Decorative TUC TUB ■ Market (YoY) ■Business (vs. Market)* *Internal estimates Strong Weak Outp
Slide 10: Summary of Operating Results in Major Segments
7. Summary of Operating Results in Major Segments (Billion yen) Tanshin Non-GAAP FY2024 FY2024 Overview YoY YoY 4Q 4Q Revenue 53.5 -1.9% 53.2 -2.4% Lower revenue due to persistent market softness in the automotive, decorative, and industrial segments Japan OP 5.5 -16.9% 5.9 -11.9% Lower profit due t
Slide 11: Major Topics (1)
8. Major Topics (1) Updates on the closing of AOC acquisition • Closing conditions are being fulfilled smoothly and could be satisfied as early as end of February • Expected 2025 EPS contribution from AOC remains unchanged at +15-17 yen on an annualized basis IR DAY 2024 (held on December 2, 2024) •
Slide 12: Major Topics (2)
8. Major Topics (2) Strong recognition from leading Japanese IR/Sustainability website evaluation agencies (announced on January 22, 2025) • Maintained high ratings for our IR and sustainability websites in FY2024 from three major evaluation agencies specializing in listed companies • Committed to c
Slide 13: Supplemental Material
Supplemental Material 1. FY2024 4Q Results: Highlights … P.14 2. FY2024 4Q Results: By Segment … P.17 3. FY2024 Results … P.27 (Appendix) Reference Data
Slide 14: FY2024 4Q Results: Highlights
1. FY2024 4Q Results: Highlights 14
Slide 15: Highlights (Consolidated)
1-1. Highlights (Consolidated) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY Key one-off factors 4Q 4Q (％) 4Q 4Q (Amount) (％) (the difference between Tanshin and Non-GAAP excluding FX impact) *Please refer to “Breakdown of Adjustments” in the Reference Da
Slide 16: Highlights (by Segment)
1-2. Highlights (by Segment) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 4Q 4Q (％) 4Q 4Q (Amount) (％) Revenue 54.5 53.5 -1.9% 54.5 53.2 -1.3 -2.4% Japan Operating profit 6.7 5.5 -16.9% 6.7 5.9 -0.8 -11.9% Revenue 179.7 233.3 29.9% 179.2 196.6 17.4 9.7%
Slide 17: FY2024 4Q Results: By Segment
2. FY2024 4Q Results: By Segment 17
Slide 18: Revenue and Operating Profit Analysis
2-1. Revenue and Operating Profit Analysis (Billion yen) Paint and Coatings Business * Revenue Non-GAAP basis +5.4% (+19.1) Tanshin basis +16.6% (+59.3) Tanshin basis +8.8 Operating Profit Non-GAAP basis +5.3 18 *Products included in the Paint and Coatings Business such as semi-finished products and
Slide 19: Japan
2-2. Japan Results (Tanshin) Results (Non-GAAP) (Billion yen) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 4Q 4Q (％) 4Q 4Q (Amount) (％) Automotive coatings 11.2 10.5 -6.9% 11.2 10.5 -0.8 -6.9% Decorative paints 12.7 12.9 1.5% 12.7 12.9 0.2 1.5% Key one-off factors (the difference between Tanshin and Non-
Slide 20: NIPSEA China
2-3. NIPSEA China (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 4Q 4Q (％) 4Q 4Q (Amount) (％) Key one-off factors (the difference between Tanshin and Non-GAAP excluding FX impact) Automotive coatings 14.9 17.4 16.7% 14.8 16.5 1.7 11.2% *Please refer to “Br
Slide 21: NIPSEA Except China
2-4. NIPSEA Except China*1 (Billion yen) Results (Tanshin) Results (Non-GAAP) Key one-off factors (the difference between Tanshin and Non-GAAP excluding FX impact) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY *Please refer to “Breakdown of Adjustments” in the Reference Data section in the appendix. Figur
Slide 22: PT Nipsea (Indonesia) & Betek Boya (Türkiye)
2-5. PT Nipsea (Indonesia) & Betek Boya (Tϋrkiye) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 4Q 4Q (％) 4Q 4Q (Amount) (％) Revenue 16.1 18.2 13.0% 16.1 17.6 1.5 9.5% PT Nipsea Operating profit 5.5 6.7 22.8% 5.5 6.5 1.0 19.1% (Indonesia) OP margin 34.0%
Slide 23: DGL (Pacific)
2-6. DGL (Pacific) Results (Tanshin) Results (Non-GAAP) *1 (Billion yen) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 4Q 4Q (％) 4Q 4Q (Amount) (％) Decorative paints 31.1 35.1 13.1% 32.1 34.1 1.9 6.0% Industrial coatings 2.6 2.6 -2.7% 2.6 2.5 -0.1 -5.1% Key one-off factors Revenue (the difference between
Slide 24: DGL (Europe)
2-7. DGL (Europe) (Billion yen) Results (Tanshin) Results (Non-GAAP)*1 FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 4Q 4Q (％) 4Q 4Q (Amount) (％) Decorative paints 26.9 27.4 1.8% 27.6 27.1 -0.5 -1.9% Key one-off factors (the difference between Tanshin and Non-GAAP excluding FX impact) Revenue *Please refe
Slide 25: Americas
2-8. Americas (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2023 FY2024 YoY FY2023 FY2024 YoY YoY 4Q 4Q (％) 4Q 4Q (Amount) (％) Key one-off factors (the difference between Tanshin and Non-GAAP excluding FX impact) Automotive coatings 11.4 11.1 -2.8% 11.4 10.7 -0.6 -5.6% *Please refer to “Break
Slide 26: Quarterly Financial Performance Trends in Major Segments
2-9. Quarterly Financial Performance Trends in Major Segments (For reference) Basic seasonal factors *Market-based High Low demand demand Demand tends to be lower in 1Q due to the deepening cold and in 3Q due to more intensely hot days that Japan Decorative 4Q > 2Q > 3Q > 1Q will slow construction p
Slide 27: FY2024 Results
((@)» NIPPON PAINT HOLDINGS CO, LTD. 3. FY2024 Results
Slide 28: Highlights (Consolidated)
3-1. Highlights (Consolidated) (Billion yen) Results (Tanshin) Results (Non-GAAP) YoY YoY YoY FY2023 FY2024 FY2023 FY2024 (％) (Amount) (％) Revenue 1,442.6 1,638.7 13.6% 1,441.4 1,522.0 80.5 5.6% Operating profit 168.7 187.6 11.2% 160.4 168.1 7.7 4.8% OP margin 11.7% 11.5% -0.2pp 11.1% 11.0% - -0.1pp
Slide 29: Highlights (by Segment)
3-2. Highlights (by Segment) (Billion yen) Results (Tanshin) Results (Non-GAAP) YoY YoY YoY FY2023 FY2024 FY2023 FY2024 (％) (Amount) (％) Revenue 201.5 203.1 0.8% 201.5 201.6 0.1 0.1% Japan Operating profit 19.2 19.4 1.5% 19.1 19.6 0.5 2.4% Revenue 771.5 914.4 18.5% 770.4 838.8 68.4 8.9% NIPSEA Opera
Slide 30: Revenue and Operating Profit Analysis
3-3. Revenue and Operating Profit Analysis (Billion yen) Paint and Coatings Business * Revenue Non-GAAP basis +5.6% (+80.5) Tanshin basis +13.6% (+196.1) Tanshin basis +18.9 Operating Profit Non-GAAP basis +7.7 30 *Products included in the Paint and Coatings Business such as semi-finished products a
Slide 31: Japan & NIPSEA China
3-4. Japan & NIPSEA China (Billion yen) Results (Tanshin) Results (Non-GAAP) YoY YoY YoY FY2023 FY2024 FY2023 FY2024 (％) (Amount) (％) Automotive coatings 42.1 39.2 -7.0% 42.1 39.2 -2.9 -7.0% Decorative paints 48.5 48.4 -0.4% 48.5 48.4 -0.2 -0.4% Industrial coatings 39.7 39.5 -0.4% 39.7 39.5 -0.2 -0.
Slide 32: NIPSEA Except China, PT Nipsea & Betek Boya
3-5. NIPSEA Except China & PT Nipsea (Indonesia) & Betek Boya (Türkiye) (Billion yen) Results (Tanshin) Results (Non-GAAP) YoY YoY YoY FY2023 FY2024 FY2023 FY2024 NIPSEA (％) (Amount) (％) Revenue 288.8 369.2 27.8% 288.8 326.7 37.9 13.1% Except China *1 Operating profit 50.2 63.6 26.8% 50.2 55.5 5.3 1
Slide 33: DGL (Pacific) & DGL (Europe)
3-6. DGL (Pacific) & DGL (Europe) (Billion yen) Results (Tanshin) Results (Non-GAAP) YoY YoY YoY FY2023 FY2024 FY2023 FY2024 (％) (Amount) (％) Decorative paints 113.4 129.5 14.2% 117.5 121.1 3.6 3.0% DGL Revenue Industrial coatings 9.6 10.7 11.7% 9.6 10.0 0.4 4.5% Adjacencies business 99.5 108.5 9.1%
Slide 34: Americas
3-7. Americas (Billion yen) Results (Tanshin) Results (Non-GAAP) YoY YoY YoY FY2023 FY2024 FY2023 FY2024 (％) (Amount) (％) Automotive coatings 40.9 45.5 11.1% 40.9 42.5 1.6 3.8% Decorative paints 66.4 75.0 12.9% 66.4 69.6 3.2 4.8% Americas Revenue Fine chemicals 1.8 2.2 22.3% 1.8 2.0 0.2 13.4% Total
Slide 35: 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