Nippon Paint Holdings Co., Ltd. · TSE:4612

Nippon Paint — FY2014 1H Earnings Presentation

40 slides from Nippon Paint's earnings presentation, Nov 25, 2014

  1. Slide 1: Analysts' Meeting for Financial Results of FY2014 1st Half

    FY2014 Nippon Paint Holdings Group Analysts’ Meeting for Financial Results of FY2014 1st Half November 25, 2014 Nippon Paint Holdings Co., Ltd.

  2. Slide 2: Disclaimer

    Disclaimer 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 Paint Holdings Co., Ltd. and the Nippon Paint Holdings Group may be signifi

  3. Slide 3: Table of Contents

    Table of Contents Trend in Consolidated Financial Results - - - - - - - - - - - - - - - - - - - - - - 3 連結業績推移・2014年度連結業績概況・・・・・・・・・ 2 1. Results of FY2014 1st Half- - - - - - - - - - - - - - - - - - - - - - - - - - - 5 1. 2014年度第2四半期累計実績・・・・・・・・・・・ 4 2.Forecast 2. for FY2014 - - - - - - - - - - - -

  4. Slide 4: Final Year of Survival Challenge 2nd Stage

    Final Year of Survival Challenge 2nd Stage Establish a business structure to move into the 3rd Stage transforming into a growth company (100 million yen) Net sales Operating Income Ordinary Income Operating Income in Japan Japan Japan Japan FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 ROE

  5. Slide 5: Summary 1st Half

    Summary 1st Half Results of FY2014 1H (1) Japan: Sales of automotive coatings and industrial-use coatings remained flat from the previous year, and sales of trade-use paints decreased from the previous year due to bad weather and the shortage of workmen. (2) Overseas: Sales declined substantially du

  6. Slide 6: 1. Financial Results of FY2014 1H

    1. Financial Results of FY2014 1H 5

  7. Slide 7: Results of FY2014 1H Consolidated PL

    Results of FY2014 1H Consolidated PL (100 million yen) Change vs. YoY Comparison Actual forecast FY2014 1H Change Percent change change* announced on May 9, 2014 Net Sales 1272.5 +3.5 +0.3% +0.4 -57.5 Operating income 156.9 -8.6 -5.2% -10.0 -8.1 (Equity in earnings of affiliates) 62.7 +11.5 +22.5% +

  8. Slide 8: Net Sales by Business Segment

    Net Sales by Business Segment (100 million yen) YoY Comparison Actual FY2014 1H Change Percent change change* Automotive coatings 450.9 -6.5 -1.4% -5.1 Trade-use paints 236.0 -7.5 -3.1% -7.0 Industrial-use Paint business coatings 232.2 -1.2 -0.5% -1.1 Other paints and coatings 277.6 +14.9 +5.7% +12.

  9. Slide 9: Net Sales and Profits by Geographic Segment

    Net Sales and Profits by Geographic Segment (100 million yen) YoY Comparison Actual FY2014 1H Change Percent change change* Net Sales 916.3 +7.3 +0.8% +7.3 Japan Operating income 122.1 -12.0 -8.9% -12.0 Net Sales 216.4 -9.1 -4.0% -14.4 Asia Operating income 21.2 +2.0 +10.5% +1.3 Equity in earnings o

  10. Slide 10: Analysis of Change in Operating Income

    Analysis of Change in Operating Income Y-on-Y Comparison Operating income for FY2013 1H: 16,550 million yen (Japan: 13,410 million yen; Overseas etc.: 3,140 million yen) Change in non-consolidated Change by segment and subsidiaries Non-consolidated company* Change in net sales -3.4 Change in Change

  11. Slide 11: Analysis of Change in Ordinary Income

    Analysis of Change in Ordinary Income Y-on-Y Comparison Ordinary income for FY2013 1H: 22,690 million yen Operating income -8.6 Details of change Financial account balance +2.1 Up 140 million yen Equity in earnings of affiliates +11.5 Other non- operating income -3.6 Ordinary income for FY2014 1H: 2

  12. Slide 12: 2. Forecast for FY2014

    2. Forecast for FY2014 * The forecast of consolidated financial results for FY 2014 does not include the effect of the consolidation of equity-method affiliates in Asia. In addition, the Company did not change its forecast announced on May 9, 2014. 11

  13. Slide 13: Forecast for FY2014 Consolidated PL

    Forecast for FY2014 Consolidated PL (100 million yen) FY2014 YoY Comparison Full-year 1H 2H Change Percent change Net Sales 2700 1272.5 1427.5 +94.2 +3.6% Operating income 345 156.9 188.1 +11.1 +3.3% (Equity in earnings of affiliates) 125 62.7 62.3 +12.3 +10.9% Ordinary income 470 228.3 241.7 +1.7 +

  14. Slide 14: Forecast for FY2014 Net Sales by Business Segment

    Forecast for FY2014 net Sales by Business Segment (100 million yen) FY2014 YoY Comparison Full-year 1H 2H Change Percent change Automotive coatings 941 450.9 490.1 +15.9 +1.7% Trade-use paints 516 236.0 280.0 +15.4 +3.1% Industrial-use Paint business coatings 483 232.2 250.8 +7.4 +1.6% Other paints

  15. Slide 15: Forecast for FY2014 Net Sales and Profits by Geographic Segment

    Forecast for FY2014 Net Sales and Profits by Geographic Segment (100 million yen) FY2014 YoY Comparison Full-year 1H 2H Change Percent change Japan Net Sales 1922 916.3 1005.7 +47.2 +2.5% Operating income 268 122.1 145.9 -2.2 -0.8% Net Sales 500 216.4 283.6 +42.9 +9.4% Asia Operating income 51 21.2

  16. Slide 16: Analysis of Change in Operating Income (H-on-H)

    Analysis of Change in Operating Income H-on-H Comparison Operating income for 1H of FY2014: 15,690 million yen (Japan: 12,210 million yen; Overseas etc.: 3,480 million yen) Change in non-consolidated Change by segment and subsidiaries Non-consolidated company* Change in net sales +6.9 Change in Chan

  17. Slide 17: Analysis of Change in Ordinary Income (H-on-H)

    Analysis of Change in Ordinary Income H-on-H Comparison Ordinary income for 1H of FY2014: 22,830 million yen Operating income +31.2 Details of change Financial account balance -2.1 Up 1,340 million yen Equity in earnings of affiliates -0.4 Other non- operating income -15.3 Forecast of ordinary incom

  18. Slide 18: Net Sales and Earnings of Equity-Method Affiliated Companies

    Net Sales and Earnings of Equity-Method Affiliated Companies Percentage change in net sales of equity-method affiliated Net sales trend (100 million yen) companies (YoY comparison on a local currency basis) FY2012 FY2013 FY2014 FY2012 FY2013 FY2014 Full-year Full-year Interim Full-year Interim Full-

  19. Slide 19: 3. Topics

    «“@ NIPPON PAINT HOLDINGS 3. Topics 18

  20. Slide 20: The Next Medium-Term Management Plan

    The Next Medium-Term Management Plan Next plan will launch in April 2015 * Transform into a Establish a solid Establish a foundation profitable structure profitable structure Expand profits Transform into a growth Become a “normal Formulating the plan to be announced in May 2015 company company” *Su

  21. Slide 21: Purposes of Reorganization

    Purposes of Reorganization (Former) Nippon Paint Co., Ltd. Holding company New company in an incorporation-type company split Nippon Paint Holdings Co., Ltd. Newly established Nippon Paint Co., Ltd. (Group management functions and Business functions(product development, group shared functions) procu

  22. Slide 22: 4 New Business Companies

    4 New Business Companies Automotive Coatings business Representative Director and President: Nippon Paint Automotive Co., Ltd. (provisional name) Mitsuo Yamada (to be) Nippon Paint Co., Ltd. Nippon Bee Chemical Daiwa Paint Trading Automotive Coatings Unification Unification Co., Ltd. Co., Ltd. busin

  23. Slide 23: Reorganization in Japan / New Companies

    Reorganization in Japan/ 4 New Companies From April 2015 Nippon Paint Holdings Co., Ltd. (Group management functions and group shared functions) Europe and North America Japan Asia (provisional name) Nippon Paint Industry Co., Ltd. Nippon Paint Co., Ltd. Nippe Trading Co., Ltd. (provisional name) Ni

  24. Slide 24: Present and Future of Asia JV

    Present and Future of Asia JV Present Undertaking procedures for transferring equity in JV companies in China, Singapore and Malaysia Future Will allocate new shares to a third party (closing of the deal); Mr. Goh will assume the Executive director’s position. Will fully consolidate from April 2015:

  25. Slide 25: Disclaimer

    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 Paint Holdings Co., Ltd. and the Nippon Paint Holdings Group may be significantly diff

  26. Slide 26: <Supplement>

    <Supplement> * The supplement does not include the effect of the consolidation of equity-method affiliates in Asia.The forecast for FY2014 is based on that of FY2013. 25

  27. Slide 27: Analysis of Change in Operating Income (Full-year)

    Analysis of Change in Operating Income Y-on-Y Comparison Operating income for FY2013: 33,390 million yen (Japan: 27,020 million yen; Overseas etc.: 6,370 million yen) Change in non-consolidated Change by segment and subsidiaries Non-consolidated company* Change in net sales -3.7 Change in Change in

  28. Slide 28: Analysis of Change in Ordinary Income (Full-year)

    Analysis of Change in Ordinary Income Y-on-Y Comparison Ordinary income for FY2013: 46,830 million yen Operating income +11.1 Details of change Financial account balance +1.4 Up 170 million yen Equity in earnings of affiliates +12.3 Other non- operating income -23.1 Forecast of ordinary income for F

  29. Slide 29: Consolidated Financial Results

    Consolidated Financial Results （億円） (100 million yen) FY2010 2010年度 FY2011 2011年度 FY2012 2012年度 FY2013 2013年度 FY2014 2014年度 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H results 通期予想 forecast Net売 Sales上 高 1151.5 2273.8 1068.3 2222.6 11

  30. Slide 30: Net Sales and Profits by Geographic Segment

    Net Sales and Profits by Geographic Segment (100 million（億円） yen) 2010年度 FY2010 2011年度 FY2011 2012年度 FY2012 2013年度 FY2013 FY2014 2014年度 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H results 通期予想 forecast 売 Sales Net 上 高 881.1 1737.2 822

  31. Slide 31: Net Sales by Business Segment

    Net Sales by Business Segment （億円） (100 million yen) 2010年度 FY2010 2011年度 FY2011 2012年度 FY2012 2013年度 FY2013 2014年度 FY2014 上期実績 1H 通期実績 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H results Full-year 通期予想 forecast Automotive 自 動 車 用 386.6 747.5 328.7 724.1 41

  32. Slide 32: Net Sales by Business Segment: Japan

    Net Sales by Business Segment Japan （億円） (100 million yen) 2010年度 FY2010 2011年度 FY2011 2012年度 FY2012 2013年度 FY2013 2014年度 FY2014 上期実績 1H 通期実績 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H results Full-year 通期予想 forecast Automotive 自 動 車 用 219.3 415.8 176.8 41

  33. Slide 33: Net Sales by Business Segment: Asia

    Net Sales by Business Segment Asia （億円） (100 million yen) 2010年度 FY2010 2011年度 FY2011 2012年度 FY2012 2013年度 FY2013 2014年度 FY2014 上期実績 1H 通期実績 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H results Full-year 通期予想 forecast Automotive 自 動 車 用 75.4 156.3 73.9 143.8

  34. Slide 34: Capital Expenditure, Depreciation, R&D Expenses

    Capital Expenditure, Depreciation, R&D Expenses （億円） (100 million yen) 2010年度 FY2010 2011年度 FY2011 2012年度 FY2012 2013年度 FY2013 2014年度 FY2014 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H results 通期予想 forecast Capital 設 備 投 資 29.8 55.5 1

  35. Slide 35: Change in Cash Flows

    Change in Cash Flows （億円） (100 million yen) 2010年度 FY2010 2011年度 FY2011 2012年度 FY2012 2013年度 FY2013 2014年度 FY2014 上期実績 1H 通期実績 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H results Cash 営 業flows from 活 動 に よ る キ ャ ッ シactivities operating ュ ・ フ ロ ー 70.4 203.5

  36. Slide 36: Foreign Exchange Rates (Term Average)

    Foreign Exchange Rates (Term Average) for statements of income (100 million yen) 2010年度 FY2010 2011年度 FY2011 2012年度 FY2012 2013年度 FY2013 2014年度 FY2014 上期 通期 上期 通期 上期 通期 上期 通期 Full-year 1H Full-year 1H Full-year 1H Full-year 1H Full-year 1H 上期 results 通期（想定） (forecast) US 米dollar ド ル 91.0 87.3 81.8 7

  37. Slide 37: Main Indicators

    Main Indicators FY2010 2010年度 FY2011 2011年度 FY2012 2012年度 FY2013 2013年度 FY2014 2014年度 上期実績 1H 通期実績 Full-year 上期実績 1H 通期実績 Full-year 上期実績 1H Full-year 通期実績 上期実績 1H 通期実績 Full-year 上期実績 1H results 売 上profit Gross 総 利 ratio益(%) 率 （ % ） 33.7 33.0 31.6 33.0 34.7 35.2 36.4 35.9 35.8 営 業 利income Operating 益

  38. Slide 38: Market Conditions: Japan-Produced Naphtha Prices

    Market Conditions: Japan-Produced Naphtha Prices （円/KL) (Yen/KL) 1Q 2Q 3Q 4Q 2010年度 FY2010 49,700 42,700 45,100 52,400 2011年度 FY2011 59,000 54,900 51,700 54,100 2012年度 FY2012 60,600 49,800 55,800 63,800 2013年度 FY2013 65,500 63,900 67,800 72,000 2014年度 FY2014 69,900 70,900 68,000 * The figures for 3Q

  39. Slide 39: Market Conditions: Number of Automobiles Produced in Japan

    Market Conditions: Number of Automobiles Produced in Japan (10,000 units) （万台) 上期 1H 下期 2H 通期 Full-year 2010年度 FY2010 478 421 899 2011年度 FY2011 390 537 927 2012年度 FY2012 490 465 955 2013年度 FY2013 474 517 991 2014年度 FY2014 478 477 955 * The figures for the 2nd half and full-year of FY2014 are the Com

  40. Slide 40: Nippon Paint Holdings Co., Ltd.

    ((@)) NIPPON PAINT HOLDINGS CO.LTD. Basic & New

Nippon Paint Holdings — FY2014 1H Earnings Presentation on 6ix