Kansai Paint : Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (Under Japanese GAAP)

May 11, 2026

Company name: Kansai Paint Co., Ltd.

Listing: Tokyo Stock Exchange

Securities code: 4613

URL: https://www.kansai.co.jp/

Inquiries:

Representative: MORI Kunishi, Representative Director of the Board, President TOMIOKA Takashi, Director of the Board, Managing Executive Officer, Chief Financial Officer

Telephone: +81-6-7178-5531

Scheduled date of annual general meeting of shareholders: June 26, 2026 Scheduled date to commence dividend payments: June 29, 2026 Scheduled date to file annual securities report: June 25, 2026 Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes

(Yen amounts are rounded down to millions.)

1. Consolidated financial results for the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)
   1. Consolidated operating results (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Fiscal year ended March 31, 2026 March 31, 2025	Millions of yen 589,795 588,825	% 0.2 4.7	Millions of yen 49,726 52,050	% (4.5) 0.9	Millions of yen 54,713 49,103	% 11.4 (14.9)	Millions of yen 31,641 38,306	% (17.4) (42.9)

      Note: Comprehensive income	For the fiscal year ended March 31, 2026:	¥	47,310 million [	(14.7) %]
      	For the fiscal year ended March 31, 2025:	¥	55,447 million [	(34.9) %]

      	Basic earnings per share	Diluted earnings per share	Rate of return on equity	Ordinary profit to total assets ratio	Operating profit to net sales ratio
      Fiscal year ended	Yen	Yen	%	%	%
      March 31, 2026	179.65	148.44	11.1	7.0	8.4
      March 31, 2025	202.02	169.25	13.2	6.8	8.8

      Reference: Share of profit (loss) of entities accounted for using equity method

      For the fiscal year ended March 31, 2026:	¥	4,160 million
      For the fiscal year ended March 31, 2025:	¥	1,829 million

   2. Consolidated financial position

      	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
      As of March 31, 2026 March 31, 2025	Millions of yen 801,693 750,699	Millions of yen 381,203 350,009	% 37.4 35.9	Yen 1,703.16 1,527.55

      Reference: Equity

      As of March 31, 2026:	¥	299,834 million
      As of March 31, 2025:	¥	269,189 million

   3. Consolidated cash flows

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
   Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
   March 31, 2026	52,616	(27,026)	(22,182)	67,230
   March 31, 2025	34,966	(39,200)	(8,006)	63,147

2. Cash dividends

   	Annual dividends per share					Total cash dividends (Total)	Payout ratio (Consolidated)	Ratio of dividends to net assets (Consolidated)
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
   Fiscal year ended March 31, 2025	—	22.00	—	28.00	50.00	9,095	24.8	3.3
   Fiscal year ended March 31, 2026	—	55.00	—	55.00	110.00	19,577	61.2	6.8
   Fiscal year ending March 31, 2027 (Forecast)	—	55.00	—	55.00	110.00		71.7

3. Consolidated financial result forecasts for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027)

(Percentages indicate year-on-year changes.)

1. Significant changes in the scope of consolidation during the period: None

2. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

   4. Restatement: None

3. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

      As of March 31, 2026	177,976,280 shares
      As of March 31, 2025	177,976,280 shares

   2. Number of treasury shares at the end of the period

      As of March 31, 2026	1,929,971 shares
      As of March 31, 2025	1,753,087 shares

   3. Average number of shares outstanding during the period

1. Non-consolidated operating results (Percentages indicate year-on-year changes.)

   	Net sales		Operating profit		Ordinary profit		Profit
   Fiscal year ended March 31, 2026 March 31, 2025	Millions of yen 147,189 147,342	% (0.1) 0.1	Millions of yen 16,941 16,450	% 3.0 9.0	Millions of yen 39,144 38,844	% 0.8 37.8	Millions of yen 35,091 35,681	% (1.7) (27.9)

   	Basic earnings per share	Diluted earnings per share
   Fiscal year ended	Yen	Yen
   March 31, 2026	197.54	163.54
   March 31, 2025	186.72	156.67

2. Non-consolidated financial position

Reference: Equity

• Financial results reports are exempt from audit conducted by certified public accountants or an audit firm.

• Proper use of earnings forecasts, and other special matters

The forward-looking statements such as operational forecasts contained in this document are based on information currently available to the Company and certain assumptions which are regarded as legitimate. However, it does not mean that we guarantee its achievement. Actual results may differ from such forward-looking statements for a variety of reasons.

Overview of financial results

In the fiscal year under review, despite a gradual recovery trend, the outlook for the global economy remained uncertain due to heightened geopolitical risks, U.S. trade policies, and escalating tensions in the Middle East toward the end of the fiscal year. Under these circumstances, the overall Japanese economy continued a gradual recovery trajectory, reflecting signs of a pick-up in personal consumption and capital investment. In India, the economy was supported by both fiscal and monetary policies, and domestic demand-led steady growth, centered on personal consumption and capital investment, continued. In Europe, while exports slowed due to the effects of tariff policies with the U.S. and production activities were pushed down, the economy showed signs of recovery, primarily driven by personal consumption. In China, the economy was stagnant due to trade problems between the U.S. and China and the stagnant real estate market.

The Group's net sales for the fiscal year were 589,795 million yen (up 0.2% year on year). Operating profit was 49,726 million yen (down 4.5% year on year) mainly due to increased fixed costs, despite the promotion of measures to improve selling prices and reduce costs. Ordinary profit was 54,713 million yen (up 11.4% year on year) mainly due to the increase in foreign exchange gains and share of profit of entities accounted for using equity method. Profit attributable to owners of parent was 31,641 million yen (down 17.4% year on year) reflecting the absence of the impact of one-time extraordinary gains recorded in the previous fiscal year, as well as the recording of one-time extraordinary losses such as extra payments for early retirements and loss on withdrawal from business.

Segment overviews are as follows.

In the automotive coatings sector, although the number of automobiles manufactured remained at the same level as the previous fiscal year, net sales increased from the previous fiscal year due to efforts to improve selling prices. Also, in the industrial coatings sector, net sales increased from the previous fiscal year due to the success of sales promotion activities. Meanwhile, in the decorative coatings and protective coatings sector, net sales fell below the previous fiscal year due to sluggish market conditions. In the marine coatings sector, although conditions remained steady, net sales fell below the previous fiscal year due to the recent decline in demand from the previous fiscal year. Segment profit decreased from the previous fiscal year, mainly due to higher profit in the industrial coatings sector and lower profit in the decorative coatings and marine coatings sector.

As a result of those factors, the segment’s net sales and segment profit were 159,888 million yen (down 2.4% year on year) and 21,968 million yen (down 8.2% year on year), respectively.

In the decorative coatings sector, net sales fell below the previous fiscal year due to sluggish overall market demand and the shift to lower-priced products. In the automotive coatings sector, the number of automobiles manufactured increased partly due to the impact of GST (Goods and Services Tax) reductions, and net sales were higher than the previous fiscal year. However, overall net sales in India fell below the previous fiscal year due to the impact of foreign currency translation caused by the appreciation of the yen. Segment profit decreased from the previous fiscal year due to a decrease in sales and an increase in personnel expenses.

As a result of those factors, the segment’s net sales and segment profit were 138,358 million yen (down 2.8% year on year) and 13,566 million yen (down 4.4% year on year), respectively.

In Turkey, net sales increased from the previous fiscal year due to an increase in the number of automobiles manufactured by major customers compared to the previous fiscal year. In other European countries, net sales increased from the previous fiscal year, partly due to the contribution of bolt-on M&A conducted in the previous fiscal year. Segment profit increased from the previous fiscal year due to an improvement in share of loss of entities accounted for using equity method, despite increases in personnel expenses and other costs.

As a result of those factors, the segment’s net sales and segment profit were 162,738 million yen (up 4.0% year on year) and 945 million yen, respectively.

In China, the number of automobiles manufactured increased from the previous fiscal year, and net sales increased from the previous fiscal year. Meanwhile, in Thailand, Malaysia, and Indonesia, the number of automobiles manufactured declined. As a result, overall net sales in Asia fell below the previous fiscal year. Segment profit fell below the previous fiscal year due to a decrease in share of profit of entities accounted for using equity method, despite improved profitability resulting from efforts to reduce total costs.

As a result of those factors, the segment’s net sales and segment profit were 68,064 million yen (down 0.9% year on year) and 9,082 million yen (down 1.2% year on year), respectively.

In South Africa and neighboring countries, net sales increased from the previous fiscal year, partly due to the contribution from the acquisition of new customers in the decorative coatings sector, despite the continued political instability. In East Africa, net sales were firm in the industrial coatings sector as well as in the mainstay decorative coatings sector. Segment profit increased from the previous fiscal year due to the expansion of the decorative coatings sector business and progress in structural reforms.

As a result of those factors, the segment’s net sales and segment profit were 51,748 million yen (up 9.1% year on year) and 6,337 million yen (up 45.7% year on year), respectively.

In North America, the number of automobiles manufactured was lower than the previous fiscal year, and net sales fell below the previous fiscal year. Segment profit decreased from the previous fiscal year due to the impact of lower sales and a decrease in share of profit of entities accounted for using equity method.

As a result of those factors, the segment’s net sales and segment profit were 8,996 million yen (down 10.3% year on year) and 1,983 million yen (down 38.1% year on year).

Consolidated Financial Statements

1. Consolidated Balance Sheet

   (Millions of yen) As of March 31, 2025 As of March 31, 2026

   Assets
   Current assets
   Cash and deposits	76,656	78,661
   Notes and accounts receivable - trade, and contract assets	120,858	129,542
   Securities	32,489	40,380
   Merchandise and finished goods	59,053	55,996
   Work in process	8,642	9,912
   Raw materials and supplies	44,233	48,072
   Other	19,588	19,314
   Allowance for doubtful accounts	(5,992)	(5,639)
   Total current assets	355,530	376,241
   Non-current assets
   Property, plant and equipment
   Buildings and structures, net	76,498	83,341
   Machinery, equipment and vehicles, net	44,699	48,940
   Tools, furniture and fixtures, net	12,758	13,108
   Land	31,800	33,833
   Construction in progress	18,041	24,609
   Total property, plant and equipment	183,798	203,833
   Intangible assets
   Leasehold interests in land	3,203	3,129
   Software	3,362	15,019
   Software in progress	8,193	1,173
   Goodwill	35,711	34,046
   Other	30,051	28,785
   Total intangible assets	80,522	82,154
   Investments and other assets
   Investment securities	57,907	58,285
   Investments in capital	31,401	33,647
   Long-term loans receivable	2,748	2,931
   Retirement benefit asset	26,962	32,459
   Deferred tax assets	6,791	7,219
   Other	10,303	10,406
   Allowance for doubtful accounts	(5,267)	(5,487)
   Total investments and other assets	130,847	139,463
   Total non-current assets	395,168	425,451
   Total assets	750,699	801,693

   (Millions of yen) As of March 31, 2025 As of March 31, 2026

   Liabilities
   Current liabilities
   Notes and accounts payable - trade	85,218	83,170
   Short-term borrowings	11,895	19,604
   Short-term borrowings from subsidiaries and associates	72	20
   Current portion of long-term borrowings	132	167
   Short-term bonds payable	31,985	29,981
   Lease liabilities	1,677	1,955
   Accrued expenses	14,483	15,880
   Income taxes payable	5,348	7,765
   Provision for bonuses	5,932	6,484
   Other	20,301	30,717
   Total current liabilities	177,049	195,748
   Non-current liabilities
   Bonds payable	60,000	60,000
   Convertible-bond-type bonds with share acquisition rights	100,472	100,352
   Long-term borrowings	7,595	2,646
   Lease liabilities	4,589	4,697
   Deferred tax liabilities	41,248	46,047
   Retirement benefit liability	7,331	9,126
   Provision for retirement benefits for directors 456 356 (and other officers)
   Provision for share awards for directors (and other officers)	331	312
   Other	1,614	1,200
   Total non-current liabilities	223,639	224,741
   Total liabilities	400,689	420,489
   Net assets
   Shareholders' equity
   Share capital	25,658	25,658
   Capital surplus	18,343	18,414
   Retained earnings	186,659	205,135
   Treasury shares	(2,101)	(2,584)
   Total shareholders' equity	228,560	246,625
   Accumulated other comprehensive income
   Valuation difference on available-for-sale securities	12,451	16,105
   Deferred gains or losses on hedges	(0)	(1)
   Foreign currency translation adjustment	19,615	26,828
   Remeasurements of defined benefit plans	8,562	10,277
   Total accumulated other comprehensive income	40,628	53,209
   Share acquisition rights	224	223
   Non-controlling interests	80,595	81,145
   Total net assets	350,009	381,203
   Total liabilities and net assets	750,699	801,693

2. Consolidated Statements of Income and Comprehensive Income

   Consolidated Statement of Income
   		(Millions of yen)
   	For the fiscal year ended March 31, 2025	For the fiscal year ended March 31, 2026
   Net sales	588,825	589,795
   Cost of sales	403,117	398,449
   Gross profit	185,708	191,345
   Selling, general and administrative expenses	133,657	141,618
   Operating profit	52,050	49,726
   Non-operating income
   Interest income	1,900	1,928
   Dividend income	667	560
   Share of profit of entities accounted for using equity method	1,829	4,160
   Foreign exchange gains	-	5,268
   Miscellaneous income	2,980	2,785
   Total non-operating income	7,378	14,704
   Non-operating expenses
   Interest expenses	3,239	3,093
   Loss on abandonment of inventories	412	576
   Foreign exchange losses	1,556	-
   Loss on net monetary position	3,268	3,922
   Miscellaneous expenses	1,848	2,124
   Total non-operating expenses	10,325	9,716
   Ordinary profit	49,103	54,713
   Extraordinary income
   Gain on sale of non-current assets	12,197	5,017
   Reversal of impairment loss	188	-
   Gain on sale of investment securities	7,023	2,602
   Gain on sale of shares of subsidiaries and associates	-	148
   Gain on liquidation of subsidiaries and associates	-	202
   Total extraordinary income	19,409	7,972
   Extraordinary losses
   Loss on sale and retirement of non-current assets	350	477
   Impairment losses	106	1,069
   Loss on sale of investment securities	-	0
   Loss on valuation of investment securities	0	999
   Loss on sale of shares of subsidiaries and associates	56	216
   Loss on disaster	-	219
   Loss on withdrawal from business	1,094	-
   Extra payments for early retirements	1,636	2,059
   Loss on revision of retirement benefit plan	-	627
   Total extraordinary losses	3,244	5,670
   Profit before income taxes	65,268	57,016
   Income taxes - current	18,841	20,638
   Income taxes - deferred	1,193	1,776
   Total income taxes	20,034	22,414
   Profit	45,234	34,601
   Profit attributable to non-controlling interests	6,927	2,960
   Profit attributable to owners of parent	38,306	31,641

   Consolidated Statement of Comprehensive Income

   For the fiscal year ended March 31, 2025

   (Millions of yen)

   For the fiscal year ended March 31, 2026

   Profit 45,234 34,601

   Other comprehensive income

   Valuation difference on available-for-sale securities (5,467) 1,019

   Deferred gains or losses on hedges (4) (1)

   Foreign currency translation adjustment 13,182 5,692

   Remeasurements of defined benefit plans, net of tax (97) 1,715

   Share of other comprehensive income of entities accounted for using equity method

   2,599

   4,284

   Total other comprehensive income 10,213 12,709

   Comprehensive income 55,447 47,310

   Comprehensive income attributable to

   Comprehensive income attributable to owners of parent 46,592 44,222

   Comprehensive income attributable to non-controlling interests 8,854 3,088

3. Consolidated Statement of Changes in Equity For the fiscal year ended March 31, 2025

   (Millions of yen)

   	Shareholders' equity
   	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
   Balance at beginning of period	25,658	19,953	234,131	(2,128)	277,614
   Effect of hyperinflation			2,972		2,972
   Hyperinflation restated balance	25,658	19,953	237,103	(2,128)	280,587
   Changes during period
   Dividends of surplus			(8,741)		(8,741)
   Profit attributable to owners of parent			38,306		38,306
   Purchase of treasury shares				(80,062)	(80,062)
   Disposal of treasury shares		0		82	82
   Cancellation of treasury shares		(0)	(80,008)	80,008	-
   Purchase of shares of consolidated subsidiaries		(1,609)			(1,609)
   Net changes in items other than shareholders' equity
   Total changes during period	-	(1,609)	(50,443)	27	(52,026)
   Balance at end of period	25,658	18,343	186,659	(2,101)	228,560

   	Accumulated other comprehensive income					Share acquisition rights	Non-controlling interests	Total net assets
   	Valuation difference on available-for-sale securities	Deferred gains or losses on hedges	Foreign currency translation adjustment	Remeasurements of defined benefit plans	Total accumulated other comprehensive income
   Balance at beginning of period	22,141	3	1,537	8,659	32,341	-	70,291	380,248
   Effect of hyperinflation							2,538	5,510
   Hyperinflation restated balance	22,141	3	1,537	8,659	32,341	-	72,830	385,759
   Changes during period
   Dividends of surplus								(8,741)
   Profit attributable to owners of parent								38,306
   Purchase of treasury shares								(80,062)
   Disposal of treasury shares								82
   Cancellation of treasury shares								-
   Purchase of shares of consolidated subsidiaries								(1,609)
   Net changes in items other than shareholders' equity	(9,689)	(3)	18,077	(97)	8,286	224	7,765	16,277
   Total changes during period	(9,689)	(3)	18,077	(97)	8,286	224	7,765	(35,749)
   Balance at end of period	12,451	(0)	19,615	8,562	40,628	224	80,595	350,009

   For the fiscal year ended March 31, 2026

   (Millions of yen)

   	Shareholders' equity
   	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
   Balance at beginning of period	25,658	18,343	186,659	(2,101)	228,560
   Effect of hyperinflation			1,606		1,606
   Hyperinflation restated balance	25,658	18,343	188,266	(2,101)	230,167
   Changes during period
   Dividends of surplus			(14,771)		(14,771)
   Profit attributable to owners of parent			31,641		31,641
   Purchase of treasury shares				(601)	(601)
   Disposal of treasury shares				118	118
   Purchase of shares of consolidated subsidiaries		70			70
   Net changes in items other than shareholders' equity
   Total changes during period	-	70	16,869	(482)	16,457
   Balance at end of period	25,658	18,414	205,135	(2,584)	246,625

   	Accumulated other comprehensive income					Share acquisition rights	Non-controlling interests	Total net assets
   	Valuation difference on available-for-sale securities	Deferred gains or losses on hedges	Foreign currency translation adjustment	Remeasurements of defined benefit plans	Total accumulated other comprehensive income
   Balance at beginning of period	12,451	(0)	19,615	8,562	40,628	224	80,595	350,009
   Effect of hyperinflation							1,878	3,485
   Hyperinflation restated balance	12,451	(0)	19,615	8,562	40,628	224	82,473	353,495
   Changes during period
   Dividends of surplus								(14,771)
   Profit attributable to owners of parent								31,641
   Purchase of treasury shares								(601)
   Disposal of treasury shares								118
   Purchase of shares of consolidated subsidiaries								70
   Net changes in items other than shareholders' equity	3,653	(1)	7,213	1,715	12,580	(0)	(1,328)	11,251
   Total changes during period	3,653	(1)	7,213	1,715	12,580	(0)	(1,328)	27,708
   Balance at end of period	16,105	(1)	26,828	10,277	53,209	223	81,145	381,203

4. Consolidated Statement of Cash Flows

For the fiscal year ended March 31, 2025

(Millions of yen)

For the fiscal year ended March 31, 2026

Cash flows from operating activities

Profit before income taxes 65,268 57,016

Impairment losses 106 1,069

Loss on withdrawal from business 1,094 -

Increase (decrease) in allowance for doubtful accounts 46 (364)

Interest and dividend income (2,568) (2,488)

Share of loss (profit) of entities accounted for using equity method (1,829) (4,160)

Loss (gain) on valuation of investment securities 0 999

Loss (gain) on liquidation of subsidiaries and associates - (202)

Decrease (increase) in trade receivables (249) (6,600)

Increase (decrease) in trade payables (5,108) (3,102)

Other, net (5,244) (1,054)

Interest and dividends received 6,834 7,146

Income taxes paid (31,292) (19,295)

Cash flows from investing activities

Proceeds from withdrawal of time deposits 8,115 10,886

Purchase of property, plant and equipment (20,105) (26,065)

Purchase of intangible assets (5,231) (5,622)

Proceeds from sale of investment securities 7,107 2,057

For the fiscal year ended March 31, 2025

(Millions of yen)

For the fiscal year ended March 31, 2026

Segment information

1. General information for reportable segments

   The reportable segments of the Kansai Paint Group are defined as components of the Group for which separate financial information is available and reviewed regularly by the Board of Directors in determining how to allocate management resources and evaluate operating performance. The Company and its consolidated subsidiaries and affiliates are primarily engaged in the manufacturing and sale of paints and coatings. The Company is mainly in charge of business activities in Japan while locally incorporated overseas subsidiaries are in charge in each region. Locally incorporated overseas subsidiaries are independent business units that develop their own business activities and establish their own comprehensive strategies in each region. Accordingly, the Kansai Paint Group, being composed of regional segments based on manufacturing and selling systems, has the following five reportable segments: Japan, India, Europe, Asia and Africa.

2. Information about sales, profit and loss, assets and other material items by reportable segment Fiscal year ended March 31, 2025 (April 1, 2024 - March 31, 2025)

(Millions of yen)

Notes:

*1 The "Other" category includes business activities of subsidiaries and affiliates in the U.S., Mexico and other locations.

*2 Adjustments for segment profit, segment assets and other items represent the elimination of intersegment transactions.

*3 Segment profit is adjusted to reflect operating profit recorded in the Consolidated Statement of Income which is adjusted by share of profit (loss) of entities accounted for using equity method.

*4 Reportable segments other than Japan include the following countries: India: India, Bangladesh, Nepal and other locations.

Europe: Slovenia, Turkey, Austria and other locations. Asia: Indonesia, Thailand, China and other locations.

Africa: South Africa, Uganda, Zimbabwe and other locations.

Fiscal year ended March 31, 2026 (April 1, 2025 - March 31, 2026)

(Millions of yen)

Notes:

*1 The "Other" category includes business activities of subsidiaries and affiliates in the U.S., Mexico and other locations.

*2 Adjustments for segment profit, segment assets and other items represent the elimination of intersegment transactions.

*3 Segment profit is adjusted to reflect operating profit recorded in the Consolidated Statement of Income which is adjusted by share of profit (loss) of entities accounted for using equity method.

*4 Reportable segments other than Japan include the following countries: India: India, Bangladesh, Nepal and other locations.

Europe: Slovenia, Turkey, Austria and other locations. Asia: Indonesia, Thailand, China and other locations.

Africa: South Africa, Uganda, Zimbabwe and other locations.