Slide 1: FY2023 2Q Financial Results Presentation Material
JUB: ギリシャ 新アクロポリス博物館 August 10, 2023 FY2023 2Q Financial Results Presentation Material JUB
Slide 2: Contents
□ FY2023 2Q Summary/Topics ・・・ P.3 □ Supplemental Material ・・・ P.10 1. FY2023 2Q Results: Highlights ・・・ P.11 Contents 2. FY2023 2Q Results: By Segment ・・・ P.14 3. FY2023 Guidance ・・・ P.23 4. FY2023 1H Results ・・・ P.27 (Appendix) Reference Data Disclosure policy for this document: - Both reported ba
Slide 3: Summary: FY2023 2Q Operating Results
1. Summary: FY2023 2Q Operating Results *1 ◆ Tanshin FY2023 2Q • Higher revenue driven by volume growth and pricing flow through mainly in decorative business, new consolidation of JUB, etc. • Higher gross profit margin QoQ for four consecutive quarters due to improved RMCC *2 ratio • Continued hype
Slide 4: Summary: Revision of FY2023 Guidance
2. Summary: Revision of FY2023 Guidance • Increased revenue guidance by 3.6%, up 10.8% from the previous year, due to higher revenue driven FY2023 by volume growth and market share gains in each business, FX and new consolidation • Furthermore, increased operating profit guidance by 12.9%, up 41.2%
Slide 5: Raw Material Market Conditions and Our Responses
3. Raw Material Market Conditions and Our Responses Continue to pursue margin improvements through pricing flow through and lowering of the RMCC ratio FY2023 2Q FY2023 3Q and beyond • China’s economy did not experience a significant recovery after the Zero- • While utility costs for TiO2 have begun
Slide 6: Market & Business Environment
4. Market & Business Environment Recovery in global automobile production expected in FY2023 Japan NIPSEA China Oceania Americas Europe Automotive FY2023 2Q Decorative TUC TUB FY2023 Automotive 3Q (outlook) Decorative TUC TUB Automotive FY2023 (outlook) Decorative TUC TUB ■ Market (YoY) ■Business (v
Slide 7: Summary of Operating Results in Major Segments
5. Summary of Operating Results in Major Segments (Billion yen) Tanshin Non-GAAP Overview 2023 2Q YoY 2023 2Q YoY Revenue 50.3 +10.2% 50.2 +9.8% ▶Decorative Flat revenue as price increases offset the effects of early onset of rainy season and heavy rain due to linear rain band Japan ▶Automotive High
Slide 8: Major Topics (1)
6. Major Topics (1) Completed acquisition of shares of European sealants and adhesives manufacturer NPT (announced on July 6) • Completed acquisition of 51% shares of NPT, with the remaining 49% available for DuluxGroup to acquire over time or to purchase from the Seller • Starting to capture growth
Slide 9: Major Topics (2)
6. Major Topics (2) Chosen as a component stock in all six ESG indexes adopted by GPIF (announced on June 23) • Became a constituent stock of the Morningstar Japan ex-REIT Gender Diversity Tilt Index (GenDi J), newly adopted by Japan’s GPIF* • With the inclusion in GenDi J, NPHD is now a component s
Slide 10: Supplemental Material
Supplemental Material 1. FY2023 2Q Results: Highlights … P.11 2. FY2023 2Q Results: By Segment … P.14 3. FY2023 Guidance … P.23 4. FY2023 1H Results … P.27 (Appendix) Reference Data
Slide 11: FY2023 2Q Results: Highlights
1. FY2023 2Q Results: Highlights 11
Slide 12: Highlights (Consolidated)
1-1．Highlights (Consolidated) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2022 FY2023 YoY FY2022 FY2023 YoY YoY 2Q *1 2Q (％) 2Q *1 2Q (Amount) (％) Revenue 337.0 362.7 7.6% 336.8 365.4 28.6 8.5% Operating profit 20.2 48.8 141.6% 29.9 42.6 12.7 42.4% OP margin 6.0% 13.5% 7.5pt 8.9% 11.7% - 2.
Slide 13: Highlights (by Segment)
1-2．Highlights (by Segment) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2022 FY2023 YoY FY2022 FY2023 YoY YoY 2Q * 2Q (％) 2Q * 2Q (Amount) (％) Revenue 45.7 50.3 10.2% 45.7 50.2 4.5 9.8% Japan Operating profit 2.2 5.3 137.1% 2.2 5.3 3.1 135.9% Revenue 186.5 194.9 4.5% 186.3 205.5 19.2 10.3%
Slide 14: FY2023 2Q Results: By Segment
2. FY2023 2Q Results: By Segment 14
Slide 15: Revenue and Operating Profit Analysis
2-1．Revenue and Operating Profit Analysis (Billion yen) Paint and Coatings Business * Revenue Non-GAAP basis +8.5% (+28.6) Tanshin basis +7.6% (+25.8) Operating Profit Non-GAAP basis +12.7 *Products included in the Paint and Coatings Business such as semi-finished products and fine chemicals with un
Slide 16: Japan
2-2．Japan Results (Tanshin) Results (Non-GAAP) (Billion yen) FY2022 FY2023 YoY FY2022 FY2023 YoY YoY 2Q 2Q (％) 2Q 2Q (Amount) (％) Automotive coatings 7.4 10.0 35.2% 7.4 10.0 2.6 35.2% Decorative paints 12.8 12.7 -0.6% 12.8 12.7 -0.1 -0.6% Industrial coatings 10.2 9.8 -3.8% 10.2 9.8 -0.4 -3.8% Revenu
Slide 17: NIPSEA (NIPSEA China)
2-3．NIPSEA (NIPSEA China) Results (Tanshin) Results (Non-GAAP) (Billion yen) FY2022 FY2023 YoY FY2022 FY2023 YoY YoY 2Q 2Q (％) 2Q 2Q (Amount) (％) Automotive coatings 10.0 12.8 28.8% 9.9 12.8 2.8 28.2% Decorative paints 104.9 109.5 4.4% 104.8 109.1 4.3 4.1% Revenue Industrial coatings 6.2 5.8 -6.2% 6
Slide 18: 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 2Q *2 2Q *2 (％) 2Q*2 2Q*2 (Amount) (％) Revenue 64.8 66.2 2.1% 64.8 77.3 12.5 19.3% Operating profit 7.6 12.7 66.5% 7.6 14.2 6.6 86.7% OP margin 11.8% 19.2% 7.4pt 11.8% 18.4%
Slide 19: PT Nipsea (Indonesia) & Betek Boya (Türkiye)
2-5．PT Nipsea (Indonesia) & Betek Boya (Tϋrkiye) Results (Tanshin) Results (Non-GAAP) (Billion yen) PT Nipsea (Indonesia) Betek Boya (Tϋrkiye)*2 FY2022 FY2023 YoY FY2022 FY2023 YoY YoY 2Q 2Q (％) 2Q 2Q (Amount) (％) Revenue 11.9 13.8 15.6% 11.9 13.4 1.5 12.5% PT Nipsea Operating profit 3.2 4.3 36.3% 3
Slide 20: DuluxGroup
2-6．DuluxGroup*1 Results (Tanshin) Results (Non-GAAP) (Billion yen) FY2022 FY2023 YoY FY2022 FY2023 YoY YoY 2Q 2Q (％) 2Q 2Q (Amount) (％) Decorative paints 51.7 57.4 11.0% 51.7 52.9 1.2 2.3% Industrial coatings 2.3 2.4 3.8% 2.3 2.4 0.1 3.9% Revenue Adjacencies business 25.1 29.2 16.5% 25.1 27.8 2.7 1
Slide 21: Cromology (Europe) & JUB (Europe)
2-7．Cromology (Europe) & JUB (Europe) Results (Tanshin) Results (Non-GAAP) (Billion yen) Cromology (Europe) JUB (Europe) FY2022 FY2023 YoY FY2022 FY2023 YoY YoY 2Q 2Q (％) 2Q 2Q (Amount) (％) Revenue 28.1 29.8 6.0% 28.1 27.6 -0.5 -1.8% Cromology Operating profit 2.8 *1 2.8 1.8% 2.8 *1 2.6 -0.2 -5.9% (
Slide 22: Americas
2-8．Americas Results (Tanshin) Results (Non-GAAP) (Billion yen) FY2022 FY2023 YoY FY2022 FY2023 YoY YoY 2Q 2Q (％) 2Q 2Q (Amount) (％) Automotive coatings 7.6 9.9 30.0% 7.6 9.1 1.5 20.2% Decorative paints 17.8 18.2 2.2% 17.8 17.0 -0.8 -4.5% Revenue Fine chemicals 0.3 0.4 38.6% 0.3 0.4 0.1 30.0% Total
Slide 23: FY2023 Guidance
((@)) NIPPON PAINT HOLDINGS CO, LTD. 3. FY2023 Guidance
Slide 24: FY2023 Guidance
3-1．FY2023 Guidance (Billion yen) Tanshin Tanshin (For reference) FY2022 FY2023 FY2022 FY2023 FY2022 Results Feb. Guidance Aug. 2H Guidance YoY Feb. vs. vs. 2H Results Guidance (Calculated backw ard (%) Guidance Aug. Guidance Aug. Guidance Results (Revised) from Aug. Guidance) FY2022 FY2023 FY2023 R
Slide 25: Assumptions for FY2023 Guidance (1)
3-2．Assumptions for FY2023 Guidance (1) (Billion yen) FY2022 Results FY2023 Guidance (In Local Currency) (Tanshin basis) Feb. Guidance Aug. Guidance YoY YoY *1 YoY YoY *1 YoY (OP margin) Revenue OP margin vs Feb. Guidance (Revenue) (OP margin) (Revenue) (OP margin) Segment total 186.1 2.8% c. +5% ↑
Slide 26: Assumptions for FY2023 Guidance (2)
3-2．Assumptions for FY2023 Guidance (2) (Billion yen) FY2022 Results FY2023 Guidance (In Local Currency) (Tanshin basis) Feb. Guidance Aug. Guidance YoY YoY *1 YoY YoY *1 YoY (OP margin) Revenue OP margin vs Feb. Guidance (Revenue) (OP margin) (Revenue) (OP margin) Segment total 314.9 9.4% +5～10% →
Slide 27: FY2023 1H Results
((@)) NIPPON PAINT HOLDINGS CO, LTD. 4. FY2023 1H Results
Slide 28: Highlights (Consolidated) 1H
4-1．Highlights (Consolidated) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2022 FY2023 YoY FY2022 FY2023 YoY YoY 1H *1 1H (％) 1H *1 1H (Amount) (％) Revenue 622.0 692.9 11.4% 621.9 676.2 54.3 8.7% Operating profit 42.1 83.7 98.9% 54.0 74.4 20.4 37.8% OP margin 6.8% 12.1% 5.3pt 8.7% 11.0% - 2.
Slide 29: Highlights (by Segment) 1H
4-2．Highlights (by Segment) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2022 FY2023 YoY FY2022 FY2023 YoY YoY 1H * 1H (％) 1H * 1H (Amount) (％) Revenue 87.5 97.3 11.3% 87.5 96.9 9.4 10.8% Japan Operating profit 2.5 8.0 214.0% 3.0 7.9 4.8 158.8% Revenue 340.1 372.9 9.6% 339.9 377.4 37.5 11.0%
Slide 30: Revenue and Operating Profit Analysis 1H
4-3．Revenue and Operating Profit Analysis (Billion yen) Paint and Coatings Business * Revenue Non-GAAP basis +8.7% (+54.3) Tanshin basis +11.4% (+70.9) Operating Profit Non-GAAP basis +20.4 30 *Products included in the Paint and Coatings Business such as semi-finished products and fine chemicals wit
Slide 31: Japan & NIPSEA China
4-4．Japan & NIPSEA China (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2022 FY2023 YoY FY2022 FY2023 YoY YoY 1H 1H (％) 1H 1H (Amount) (％) Automotive coatings 16.0 20.4 27.3% 16.0 20.4 4.4 27.3% Decorative paints 23.2 23.8 2.9% 23.2 23.8 0.7 2.9% Industrial coatings 19.3 19.1 -1.0% 19.3 19.1 -
Slide 32: NIPSEA Except China, PT Nipsea & Betek Boya
4-5．NIPSEA Except China & PT Nipsea (Indonesia) & Betek Boya (Türkiye) (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2022 FY2023 YoY FY2022 FY2023 YoY YoY 1H 1H (％) 1H 1H (Amount) (％) NIPSEA Revenue 122.2 135.7 11.1% 122.2 145.7 23.5 19.3% Except China*1 Operating profit 16.2 23.0 42.5% 16.2
Slide 33: DuluxGroup, Cromology & JUB
4-6．DuluxGroup & Cromology (Europe) & JUB (Europe) Results (Tanshin) Results (Non-GAAP) (Billion yen) FY2022 FY2023 YoY FY2022 FY2023 YoY YoY 1H 1H (％) 1H 1H (Amount) (％) Decorative paints 96.0 110.5 15.1% 96.0 99.0 3.1 3.2% Industrial coatings 4.2 4.4 4.3% 4.2 4.3 0.1 1.2% Revenue DuluxGroup Paint
Slide 34: Americas 1H
4-7．Americas (Billion yen) Results (Tanshin) Results (Non-GAAP) FY2022 FY2023 YoY FY2022 FY2023 YoY YoY 1H 1H (％) 1H 1H (Amount) (％) Automotive coatings 14.6 19.1 31.0% 14.6 17.2 2.6 17.8% Decorative paints 32.1 32.1 -0.2% 32.1 29.2 -2.9 -9.0% Revenue Americas Fine chemicals 0.7 0.8 20.8% 0.7 0.8 0.
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
Slide 36: Reference Data
FY2023 2Q Financial Results Presentation Material Reference Data August 10, 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 & Op
Slide 37: Revenue & Operating Profit Transition by Segment (Former)
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 38: 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 39: Breakdown of 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 2Q Automotive 10.2 8.5 7.6 8.9 35.3 8.7 7.4 9.1 10.0 35.1 10.4 10.0 Decorative 9.9 11.9 11.4 12.1 45.4 10.4 12.8 11.9 12.7 47.8 11.1 12.7 Industrial
Slide 40: Breakdown of 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 2Q Automotive 18.6 18.4 16.0 21.0 74.1 21.2 20.3 24.5 30.5 96.5 21.8 24.0 Decorative 85.5 112.2 114.4 107.4 419.5 111.8 140.2 149.7 112.3 514.0 132.3
Slide 41: Contribution from DuluxGroup, Cromology, JUB, Betek Boya, PT Nipsea
3. Revenue & Operating Profit Contribution from DuluxGroup, Cromology, JUB, Betek Boya and PT Nipsea (Billion yen) FY2020*1 FY2021*1 FY2022*1 FY2023*1 1Q 2Q 3Q 4Q F/Y 1Q 2Q 3Q 4Q F/Y 1Q 2Q F/Y 4Q F/Y 1Q 2Q 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 42: Breakdown of Adjustments (2Q): DuluxGroup
4. Breakdown of Adjustments (FY2022 2Q vs. FY2023 2Q) FY2022 2Q FY2023 2Q (Billion yen) M&A New M&A New Subsidy, Credit loss Subsidy, Credit loss FX related acqui- Total FX related acqui- Total etc.*1 provision etc.*1 provision expenses sitions expenses sitions Automotive - - - - - - - - - - - - Dec
Slide 43: Breakdown of Adjustments (2Q): NIPSEA
4. Breakdown of Adjustments (FY2022 2Q vs. FY2023 2Q) FY2022 2Q FY2023 2Q (Billion yen) M&A New M&A New Subsidy, Credit loss Subsidy, Credit loss FX related acqui- Total FX related acqui- Total etc.*1 provision etc.*1 provision expenses sitions expenses sitions Automotive 0.0 - - - - 0.0 0.3 - - - -
Slide 44: Breakdown of Adjustments (1H): DuluxGroup
5. Breakdown of Adjustments (FY2022 1H vs. FY2023 1H) FY2022 1H FY2023 1H (Billion yen) M&A New M&A New Subsidy, Credit loss Subsidy, Credit loss FX related acqui- Total FX related acqui- Total etc.*1 provision etc.*1 provision expenses sitions expenses sitions Automotive - - - - - - - - - - - - Dec
Slide 45: Breakdown of Adjustments (1H): NIPSEA
5. Breakdown of Adjustments (FY2022 1H vs. FY2023 1H) FY2022 1H FY2023 1H (Billion yen) M&A New M&A New Subsidy, Credit loss Subsidy, Credit loss FX related acqui- Total FX related acqui- Total etc.*1 provision etc.*1 provision expenses sitions expenses sitions Automotive 0.0 - - - - 0.0 1.6 - - - -
Slide 46: Key Financial Data
6. Key Financial Data ＜Capital Expenditure, Depreciation, R&D Expenses> FY2022 FY2023 (Billion yen) 2Q 2Q Property, plant and 11.3 11.4 Capital equipment expenditure Intangible assets 0.3 0.2 Total 11.6 11.5 Property, plant and 8.5 9.9 equipment Depreciation Intangible assets 2.6 2.8 Total 11.1 12.7
Slide 47: Key Market Data
7. 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 2Q Japan*1 (10,000t) 40 36 38 42 156 40 40 40 41 161 39 39 38 40 155 37 24 *1 Source: Japan Paint Manufacturers Association; FY2023 2Q covers April and May <Automobile production*2>