Nippon Paint Hldgs Co Ltd (NPCPF) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello, everyone. I am Wakatsuki, co-president of Nippon Paint Holdings. Thank you for taking time out of your busy schedules to join us today. I would like to present an overview of the financial results for the first quarter of fiscal year 2025. Before going into my presentation, first and foremost, I would like to state that today we're not revising the guidance we announced in April. In principle, we believe that the regional figures announced in February and April are well achievable. However, we assumed exchange rates of 148 yen to the US dollar and 20.5 yen to the renminbi as announced in April. While the yen depreciated slightly against these assumptions in the first quarter, it has been extremely volatile since April, so there is a possibility of a deviation from the April guidance if the exchange rate fluctuates significantly. For your reference, the sensitivity to a one-yen fluctuation over a full year and a 10-month period for AOC is shown on the right side of page 2. Next, page three is a summary of the first quarter of 2025. As you can see, revenue and operating profit increased 5.6% and 24.7% respectively to 405.7 billion yen and 51.4 billion yen. Revenue is the highest ever for Q1, and operating profit is a record high for any quarter. New consolidation includes three months of India and one month of AOC. and margin is also up due to AOC's contribution. There are two things I'd like to draw your attention to here. First, as I mentioned in February, we've changed the Asian model for the trading business in China. So under comparable conditions against 2024, revenue would increase by 7.6% instead of 5.6% on a touching basis, And on a non-GAAP basis, revenue would increase by 1.6% instead of minus 0.3% under comparable conditions. Secondly, AOC. AOC's OP ...