Nippon Paint Holdings Co., Ltd. · TSE:4612
Nippon Paint — H1 2017 Earnings Presentation
22 slides from Nippon Paint's earnings presentation, Aug 28, 2017
Slide 1: Presentation for Institutional Investors
Presentation for Institutional Investors Tetsushi Tado, President & CEO August 28, 2017
Slide 2: Table of Contents
Table of Contents 1. Review of FY2017 First-Half ------ 1 2. FY2017 Full-Year Plan ------ 3 3. Progress of the Mid-Term Management Plan ------ 6 4. Topics: ESG ------ 11
Slide 3: Review of FY2017 First-Half
NIPPON PAINT HOLDINGS CO.LTD. Review of FY2017 First-Half
Slide 4: P/L
P/L Although net sales grew steadily, operating profit decreased due to a rise in raw material costs. (100 million yen) Gap Breakdown FY2017 FY2016 GAP Impact of Impact of Actual Jan-June Jan-June FX Acquisition GAP Net sales 2,918 2,549 369 -44 156 257 Operating profit 355 375 -20 -7 -4 -10 Operati
Slide 5: Geographic Segment Information
Geographic Segment Information Although net sales grew steadily, operating profit decreased due to a rise in raw material costs and temporary expenses incurred. (100 million yen) GAP Breakdown FY2017 FY2016 GAP Impact of Impact of Actual Jan-June Jan-June FX Acquisition GAP Japan Net sales 871 849 2
Slide 6: FY2017 Full-Year Plan
NIPPON PAINT HOLDINGS CO.LTD. FY2017 Full-Year Plan
Slide 7: FY2017 Full-Year Plan
FY2017 Full-Year Plan We strive to achieve its initial plan even in the difficult business environment. We challenge to expand sales and thoroughly reduce costs in each region. (100 million yen) FY2017 FY2017 Full-Year Plan Full-Year Plan Japan Net sales 1,810 Net sales 5,770 Operating profit*1 328
Slide 8: Update on TU Business in China
Update on TU Business in China We have secured profits in DIY, a mainstay field. Sales breakdown by application (Entire business) Impact of a rise in raw material costs DIY: B to C • Since we have high market share, it is relatively easy to pass on increases in raw materials hike. TU: Sales breakdow
Slide 9: Dividend
Dividend We have continued increasing the dividend. Since FY2015 it has aimed to achieve a 30% payout ratio.* (Yen/Share) 45 60% 42 40 40 35 50% 35 30 37% 37% 36% 40% 25 22 20 30% 20 29% 29% 28% 15 18% 14 19% 20% 16% 10 8 9 6 10% 5 0 0% FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Annual dividend Pa
Slide 10: Progress of the Mid-term Management Plan
Progress of the Mid-term Management Plan
Slide 11: Business Performance from FY15 to FY17(plan)
Business Performance from FY15 to FY17(plan) Both net sales and operating profit have grown steadily. Net sales (100 million yen) Operating profit (100 million yen) 7,000 6,760 1,400 6,060 Growth rate 6,000 5,503 Growth rate +12% 1,200 5,000 +10% 1,011 1,000 859 Growth rate 4,000 721 Growth rate +17
Slide 12: Foothold to a Leading Position
Foothold to a Leading Position While placing priority on Asia (China), we have aimed to foster its 2nd and 3rd pillars of business in other regions. Bollig & Kemper GmbH & Co. KG (“B&K”) CRF Shenzhen Co., Ltd. (“CRF”) Dunn-Edwards Corporation (“DE”) In January 2016, we turned B&K into a wholly- In J
Slide 13: DE FY2017 net sales, operating profit, and depreciation and amortization
DE FY2017 net sales, operating profit, and depreciation and amortization DE strives to improve profitability further in the 2nd half of FY2017. (100 million yen) (100 million yen) Impacts of FY2017 Yen-US dollar Depreciation & FY2017 H1*1 PPA results rate FY2017 full year amortization consolidation
Slide 14: Business Environment
Business Environment Although the paint industry has seen reorganization occur globally, the industry has not become an oligopoly yet. Estimated market shares of major paint manufacturers* 2015 2017 * Estimates are based on data of Coatings World and IPPIC 9
Slide 15: The direction
The direction We will create a foundation to surely and promptly take a leading position. The direction remains unchanged. Global paint major A world-leading Will obtain a global Expansion and growth leading position in the coatings and related businesses and establish Creation of a foundation 2020
Slide 16: Topics: ESG
NIPPON PAINT HOLDINGS CO.,LTD. Topics: ESG
Slide 17: E Topic: New Products and Technologies (1)
E Topic: New Products and Technologies (1) Launched the world’s first antifouling-agent-free and hydrolytic ship bottom coating, AQUATERRAS Achieved reduced burden on marine organisms and improved fuel efficiency The world’s first antifouling-agent (copper)-free self-smoothing coating World firs
Slide 18: E Topic: New Products and Technologies (2)
E Topic: New Products and Technologies (2) Launched a paint for housing interior finishing that uses rushes from Kumamoto Prefecture A safe and trusted paint that uses naturally derived components The paint was also used in reconstruction following the 2016 Kumamoto earthquakes. Enlarged view
Slide 19: S Topic: Philanthropic Activity Program in Asia
S Topic: Philanthropic Activity Program in Asia Activity in Malaysia: Support for Art by Children for Children Long-term project, from 2014 to 2028 Supports underprivileged children in cooperation with NGOs to make their dreams come true. Offer children who send pictures to the exhibition an o
Slide 20: G Topic: Global Governance
G Topic: Global Governance Earnestly study the details to incorporate group governance in the next mid-term management plan. Plan to establish competitive advantage through super-high effective production from reorganizing domestic plants Theme Contents Steering committee on reformulating Esta
Slide 21: G Topic: Global Governance
G Topic: Global Governance Current governance system: Establish a regional management Future governance: Evolve into a matrix structure based on operational and company to get involved in governance geographical segments. Japan Asia/China Americas Europe 15
Slide 22: Forward-looking statements
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 Nippon Paint Holdings Group may be significantly differen
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