Nippon Paint Holdings Integrated Report 2022

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Value Creation Model for Achieving MSV

Aiming for Maximization of Shareholder Value (MSV) based on Asset Assembler model of accelerating growth through both existing businesses and M&A

Our Business Model

INPUT

Financial and non-financial assets

Human resources/
organizations
- Executing autonomous and decentralized management
- Promoting Diversity & Inclusion
- Formulated Purpose and Global Code of Conduct
- Promoting employee engagement
Technologies
- Cultivating engineering talent
- Stepping up R&D activities
- Maintaining and reinforcing production facilities
- Developing products with social benefits
External partner
- Promoting open innovation with universities and research institutions
- Promoting joint research with automobile manufacturers
- Enhancing engagement with investors and other stakeholders
- Strengthening and deepening partnerships with Wuthelam Group
Customer base
- Developing distribution networks that will allow us to supply products to consumers around the world
- Increasing strategic partnerships with real estate developers
- Developing strong trust relationships with automobile manufacturers and other customers
Brands
- Promoting advertising and marketing activities
- Increasing visibility among consumers
- Holding AYDA Awards international architectural and interior design competition
- Promoting social contribution activities
Financial base
- Ensuring financial disciplines
- Prioritizing debt finance and maintaining leverage capacity
- Issued new shares through a third-party allotment
- Promoting engagement with financial institutions and credit rating agencies
Nature/environment
- Actions to combat global warming
- Proper water use
- Reducing environmental impacts by developing water-based paints

OUTPUT

Financial and non-financial assets

Human resources/
organizations
- Consolidated number of employees (overseas ratio)
  30,247 (89.1%)
- Employee satisfaction level
  89% (Japan Group); 80% (DuluxGroup)
Technologies
- Engineering talent
  3,887 persons
- New Product Sales Index (NPSI)
  21.1% (total of Japan Group and NIPSEA Group)
External partner
- Joint development with the University of Tokyo
  New anti-viral materials
- Transferred to Wuthelam Group
  European automotive coatings business and India businesses
Customer base
- Number of sales locations in China
  58,000 stores
- Number of countries/regions where Nippon Paint Group has the No.1 market share in decorative paints
  8 countries/regions
Brands
- Brand award from a Chinese brand evaluation institution
  Awarded the Gold Brand for six consecutive years (Wall Paint Category)
- Brand award in Australia
  Recognized as Most Trusted Brands (Several DuluxGroup brands)
Financial base
- Net D/E ratio
  0.45 times
- R&I rating
  A
Nature/environment
- CO₂ emissions in Japan (Scope 1 and 2)
  42,971 t-CO₂
- ESG indexes adopted by GPIF
  Selected as a constituent stock in all five indexes