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

Nippon Paint — Merger or Acquisition (April 2019)

17 slides from Nippon Paint's merger presentation, Apr 26, 2019

  1. Slide 1: Acquisition of Betek Boya

    Acquisition of Betek Boya April 26, 2019 Nippon Paint Holdings Co., Ltd.

  2. Slide 2: Executive Summary

    Executive Summary  Betek Boya is a leading player in the Turkish decorative paint for construction market – a market with high growth potential  Nippon Paint Holdings Co., Ltd., by acquiring Betek Boya, will achieve a No.1 market share in Turkey in addition to Asia, where the company has long had

  3. Slide 3: Today's Agenda

    Today’s Agenda 1. Background & Strategic Significance of the Acquisition 2. Overview of Betek Boya 3. Transaction Overview 4. Expected Synergies 3

  4. Slide 4: Strategic significance: Medium-term Plan N-20

    1. Background & strategic significance: in the context of Medium-term Plan “N-20” Medium-term management plan “N-20” to implement a growth strategy towards 2020 A leading company that continuously creates new value Medium-term plan up to 2020 Three years of accelerating growth “Win” in every busines

  5. Slide 5: Strategic Significance: Global Market Structure

    1. Background & Strategic Significance: Global Market Structure Establish an unassailable position in two domains : Decorative paints & Asia-Pacific Share of each segment of world paint/coating market (2018) World paint/coating market (projected share in each region) Decorative 39% 82 US$bn 107 US$b

  6. Slide 6: Strategic Significance: Global Business Area Balance

    1. Background & Strategic Significance: Global Business Area Balance Establish well-balanced region portfolio through transaction : fast-growing region (Asia & China) vs stable-growth region (Japan, Americas, Europe & Pacific) FY2018 result (IFRS) FY2018 result (IFRS) After transaction(1) (Simple ag

  7. Slide 7: Strategic Significance: Key Strategic Rationale

    1. Background & Strategic Significance: 5 Key Strategic Rationale Acquisition of Betek contributes to the enhancement of enterprise value and equity value Acquisition of Regional No.1 Share Company  Enhancement of business foundation by acquiring a company with strong position in Turkey where futur

  8. Slide 8: Strategic Significance: Risk Consideration (1)

    1. Background & Strategic Significance: Risk Consideration (1) Decided acquisition upon sincere discussion about risk factors below  While the GDP growth has slowed since the 2nd half of 2018, historically Uncertainty in Turkey has gone through economic cycles every 6-7 years followed by a the Turk

  9. Slide 9: Strategic Significance: Risk Consideration (2)

    1. Background & Strategic Significance: Risk Consideration (2) Betek historically has realized the successful pass-through of rising material costs to price Transition of Share of Market, Average Sales Price and Raw Material Cost Deco Paints EPS (TL /1 Ton) (Market Share) (TL /1 Ton) (Market Share)

  10. Slide 10: Betek: Corporation Overview

    2. Overview of Betek：Corporation Overview Established in 1988, a leading player of Turkish decorative paint and construction materials Overview Corporate Structure  Date of Establishment: 1988 Founder DAW Others  Headquarters: Istanbul, Turkey  Market leader in Turkish deco paints with c. 25% mar

  11. Slide 11: Betek: Product Portfolio and Business Overview

    2. Overview of Betek：Product Portfolio and Business Overview Top market share in Decorative Paint and ETICS (Insulation Materials) Turkish Decorative Paint Market Share （weight base） Turkish ETICS Market Share （volume base） Anout 25% market Other share by Filli Boya and Brand A Fawori About 30% Ab

  12. Slide 12: Betek: Performance and Segment Breakdown

    2. Overview of Betek：Performance and Segment Breakdown Recorded strong revenue growth and significant business expansion Sales & Profit （TL mn） Sales by Business Segment (Dec 2017) Sales / Sales Growth JPY 35bn(1) Growth Rate +9.1% +6.3% +12.4% +6.7% +32.5% +17.0% (TL mn) 5% 8% 2,000 1,750 1,500 1,4

  13. Slide 13: Betek: Turkish Market Forecast

    2. Overview of Betek：Turkish Market Forecast Strong expected economic growth due to the young and growing population Population Forecast （mn） and Real GDP Growth Rate（%） Turkish Population Pyramid (mn) The young population 100 signals high future 百 2024 economic growth and 2018 86 million 95-99 15%

  14. Slide 14: Betek: Turkish Market Potential

    2. Overview of Betek：Turkish Market Potential An appealing Turkish market with strong expected growth Overview of Turkish Decorative Paint Market Turkish Decorative Paint Market（weight base） （k tons） Value 4.3bn TL(2017) 5 1,000 Base （About JPY 8.6bn(1)） 842 Weight 764 Base 660 k tons(2017) 5th 750

  15. Slide 15: Transaction Overview

    3. Transaction Overview Transaction  Acquisition price is to be disclosed upon closing Consideration Source of  Borrowings from financial institutions Financing （No issuance of additional shares for this transaction）  Acquisition of shares by Nippon Paint Holdings Co., Ltd. Structure  Expected a

  16. Slide 16: Expected Synergies

    4. Expected Synergies Expected synergies in a variety of fields Expected Synergies 1 Management  Nipsea team to lead management post-acquisition 2 Sales  Increase in product range Expansion  Integration of know-how in advertisement and marketing to enhance brand value 3 Cost  Cost reduction thro

  17. Slide 17: Inquiries

    <Inquiries> +81 (0)6-6455-9140 IR Office, IR/PR Dept., Corporate Planning HQ, Nippon Paint Holdings Co., Ltd. This document contains judgements made by the Company based on information available at the time it was prepared, and includes risks and uncertainties. As a result, actual performance figure

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