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Our Sole Mission: Maximization of Shareholder Value (MSV)

Creating wealth by pursuing MSV as our sole mission

Nippon Paint Group is a unique Japan-origin global company that positions MSV as its sole mission. Based on Asset Assembler model, we will aim to create wealth by maximizing the residual shareholder value that remains after fulfilling our obligations to customers, suppliers, employees, society, and other stakeholders.

Our sole mission MSV (Maximization of Shareholder Value)

Management with Attention Paid to Our Stock Price

Turning the maximization of EPS and PER into stock price appreciation

Nippon Paint Group is pursuing our sole mission of MSV through the maximization of EPS and PER. We practice management with attention paid to our stock price, which is the outcome of the pursuit of MSV.
Our historical stock price, EPS, and PER over the past 10 years have exceeded the TOPIX chemical sector average and the average of competitors (mean value) (see the graph below.) We will continue to pursue the achievement of MSV by posting sustained EPS growth and raising expectations from capital markets.

Historical stock price of NPHD
Historical stock price of NPHD

*1 Source: FactSet (as of June 30, 2023), Bloomberg
*2 The stock prices were indexed with the closing price on July 1, 2013, as 100
*3 Competitors covered are Sherwin-Williams, BASF, Asian Paints, PPG Industries, AkzoNobel, Berger Paints India, Axalta, SKSHU Paint, Kansai Paint, TOA Paint, Asia Cuanon
*4 Stock prices of Axalta, SKSHU Paint, TOA Paint, and Asia Cuanon were indexed using the indexed stock price of Sherwin-Williams on the listing dates of these stocks

Historical EPS of NPHD
Historical EPS of NPHD

*1 Source: FactSet (as of June 30, 2023), Bloomberg
*2 Competitors covered are Sherwin-Williams, BASF, Asian Paints, PPG Industries, AkzoNobel, Berger Paints India, Axalta, SKSHU Paint, Kansai Paint, TOA paint, and Asia Cuanon
*3 The exchange rates used for the calculation of EPS (for the next 12 months) were the following rates as of June 30, 2023: USD/EUR=1.091000, USD/INR=0.012190, USD/CNY=0.137664, USD/JPY=0.006919, USD/THB=0.028205

Historical PER of NPHD
Historical PER of NPHD

*1 Source: FactSet (as of June 30, 2023), Bloomberg
*2 PER (for the next 12 months) is calculated by the stock price on each day divided by EPS (for the next 12 months) on each day
*3 Competitors covered are Sherwin-Williams, BASF, Asian Paints, PPG Industries, AkzoNobel, Berger Paints India, Axalta, SKSHU Paint, Kansai Paint, TOA Paint, and Asia Cuanon

Our Value Creation Model

Value creation model is based on (1) organic EPS growth, (2) inorganic EPS accretion, and (3) maximization of PER

Our Value Creation Model
Financial and Non-Financial Resource
Icon: Human resources/organizationsHuman resources/organizations
  • Create workplaces that encourage active participation by people with diverse backgrounds and characteristics
  • Embrace reforms and changing work styles
  • Firmly establish the Purpose and the Global Code of Conduct
  • Increase the effectiveness of risk management
  • Consolidated number of employees (ratio outside Japan)
    33,763 (89.2%)
  • Employee satisfaction level
    81% (Japan Group)
  • Ratio of women in managerial positions (global)
Icon: TechnologiesTechnologies
  • Cultivate engineering talent
  • Step up R&D activities
  • Maintain and reinforce production facilities
  • Develop sustainable products
  • Engineering talent (global)
    3,895 persons
  • New Product Sales Index (NPSI)
    20% (Total of NIPSEA Group and Japan Group)
Icon: External partnerExternal partner
  • Open innovation with universities and research institutions
  • Joint research with automobile manufacturers
  • Increase engagement with investors and other stakeholders
  • Strengthen and deepen partnerships with Wuthelam Group
  • Joint development with the University of Tokyo
    New anti-viral materials
  • Transferred to Wuthelam Group
    European automotive coatings business and India businesses
Icon: Customer baseCustomer base
  • Build distribution networks that will allow us to supply products to consumers around the world
  • More strategic partnerships with real estate developers
  • Build strong relationships based on trust with automobile manufacturers and other customers
  • Number of sales locations in China
    104,000 stores
  • Number of countries/regions where Nippon Paint Group has the No. 1 market share in decorative paints
    13 countries/regions
Icon: BrandsBrands
  • Advertising and marketing activities
  • Increase visibility among consumers
  • Hold the AYDA Awards international architectural and interior design competition
  • Social contribution activities
  • Brand award from a Chinese brand evaluation institution
    Awarded the Gold Brand for seven consecutive years (Wall Paint Category)
  • Brand award in Australia
    Recognized as Most Trusted Brands (Several DuluxGroup brands)
Icon: Financial baseFinancial base
  • Rigorous financial discipline
  • Prioritize debt financing and maintaining leverage capacity
  • Engagement with financial institutions and credit rating agencies
  • Build a global investor base
  • Net D/E ratio
    0.50 times
  • R&I rating
  • Total shareholder return (TSR)
Icon: Nature/environmentNature/environment
  • Actions to combat global warming
  • Responsible water use
  • Reduce environmental impacts by developing water-based paints
  • GHG emissions (Scope 1 and 2, Global)
    55.6 kg-CO2/production volume (ton)
  • ESG indexes adopted by GPIF
    Selected as a constituent in all six indexes

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