Our Sole Mission: Maximization of Shareholder Value (MSV)

Maximization of Shareholder Value (MSV)

MSV is about maximizing residual value after fulfilling our obligations to all stakeholders

We pursue Maximization of Shareholder Value (MSV) as our sole mission. Our goal is to maximize the shareholder value that remains after fulfilling our obligations to customers, suppliers, employees, society, and other stakeholders by leveraging our Asset Assembler model.

• Maximization of Shareholder Value (MSV)

  Our sole mission: Maximization of Shareholder Value (MSV) / How Shareholder Value Is Maximized

Fulfilling obligations to stakeholders

The major premise of MSV, before everything else, is the fulfillment of our obligations to customers, suppliers, employees, society, and other stakeholders. The relationship of trust with stakeholders through engagement is an asset integral to our Asset Assembler model. We will continue to strive for the maximization of shareholder value that remains after fulfilling our obligations to all stakeholders.

Key stakeholders

Examples of fulfillment of obligations

Customers

Examples of fulfillment of obligations

1. Joint development activities aimed for solving social issues (new-generation technologies such as decorative films and target line paint for assisting automated driving)
   • “Behind the Scenes: Target Line Paint”
2. Periodic factory tour events and customer satisfaction surveys (technology and sales areas, etc.)
3. Provision of high-quality products with considerations to health and safety
   • “Eco-Friendly Products”
4. Exhibit and participate at events aimed for obtaining industry trends and information sharing (lectures at SURCAR (automotive), International Auto Aftermarket EXPO (auto refinish), High Performance Paint Exhibition and other industry events, and writing professional articles)
5. Respond to questionnaire surveys such as CDP (an international NGO) by request from customers

Suppliers

Examples of fulfillment of obligations

1. Conduct questionnaires aimed for sustainable procurement of materials and services
2. Eliminate organizations involved in human rights abuses and the use of raw materials made through human rights abuses
   • “Sustainable Procurement”

Employees

Examples of fulfillment of obligations

1. Keep tabs on employee satisfaction levels using questionnaires by the Labor Union and external surveys and conduct employee engagement activities
2. Design and implement training programs to gain knowledge and skills about products, businesses, etc.
3. Establish an internal reporting system that enables employees to speak up and report violations without experiencing unfair treatment
   • “Human Resource Strategy” and “Risk Management”

Our Value Creation Model

We aim to maximize both EPS and PER from a long-term perspective, while harnessing the advantage of our platform based on our Asset Assembler model, towards the achievement of MSV.

Management resources

Examples of resources
and updates

Measures to strengthen
resources based on
our medium-
to long-term management strategy

Human resources/
organizations

Examples of resources and updates

• Ratio of overseas employees (global)
  87.0% (2018)

  ➡ 89.9% (2023)
• Ratio of women in managerial positions (global)
  23.8% (2020)

  ➡ 26.5% (2023)
• Employee satisfaction rate (Japan Group)
  83% (2019)

  ➡ 79% (2023)

Measures to strengthen resources based on our medium- to long-term management strategy

• Creating a workplace environment that allows diverse people to play an active role
• Accepting reforms and changing workstyle
• Instilling Purpose and Global Code of Conduct
• Improving effectiveness of risk management

Technologies

Examples of resources and updates

• Number of engineering talents (global)
  3,545 (2019)

  ➡ c.4,300 (2023)
• Number of factories (global)
  119 (2019)

  ➡ 163 (2023)
• Number of registered patents (global)
  1,000 (2021)

  ➡ 1,610 (2023)

Measures to strengthen resources based on our medium- to long-term management strategy

• Cultivating engineering talent
• Stepping up R&D activities
• Maintaining and reinforcing production facilities
• Developing sustainable products

External partner

Examples of resources and updates

• Number of stores implementing the “New Generation Dealer” program (Betek Boya)
  c.50 (2019)

  ➡ c.380 (2023)
• Number of IR meetings (global)
  281 (2019)

  ➡ 707 (2023)
• Shareholding of the majority shareholder Wuthelam Group (private company)
  14.5% (2013)

  ➡ 58.7% (2023)

Measures to strengthen resources based on our medium- to long-term management strategy

• Active open innovation activities with universities, research institutions, automobile manufacturers, and other external partners
• Facilitating engagement with investors and other stakeholders
• Advancing and deepening the partnership with Wuthelam Group

Customer base

Examples of resources and updates

• Number of distribution stores (NIPSEA China)
  c.50,000 (2019)

  ➡ c.290,000 (2023)
• Number of CCM-installed stores (NIPSEA China)
  c.3,000 (2019)

  ➡ c.19,000 (2023)
• No.1 market share in decorative paints (global)
  8 countries (2019)

  ➡ 13 countries (2023)

Measures to strengthen resources based on our medium- to long-term management strategy

• Developing distribution channels that enable us to supply products to consumers worldwide
• Increasing strategic partnerships with property developers
• Developing strong trust relationships with automobile manufacturers and other customers

Brands/know-how

Examples of resources and updates

• Number of key brands (global)
  31 (2019)

  ➡ 41 (2023)
• Top of Mind rating (NIPSEA China)
  51% (2019)

  ➡ 51% (2023)
• Top of Mind rating (Indonesia)
  26% (2021)

  ➡ 26% (2023)

Measures to strengthen resources based on our medium- to long-term management strategy

• Promoting advertising, marketing, and social contribution activities
• Sharing and accumulating expertise and know-how through our platform
• Holding AYDA Awards international architectural and interior design competition

Financial base

Examples of resources and updates

• Operating cash flows (consolidated)
  ¥92.1 bn (2019)

  ➡ ¥189.8 bn (2023)
• Net D/E ratio (consolidated)
  0.56x (2019)

  ➡ 0.36x (2023)
• Total equity (consolidated)
  ¥688.0 bn (2019)

  ➡ ¥1,368.1 bn (2023)

Measures to strengthen resources based on our medium- to long-term management strategy

• Strict adherence to financial discipline
• Prioritizing debt finance and maintaining leverage capacity
• Promoting engagement with financial institutions and credit rating agencies
• Developing a global base of investors

Nature/
environment

Examples of resources and updates

• GHG emissions (Scope 1 & 2; global)
  54.3 kg/ton of production (2019)

  ➡ 40.2 kg/ton of production (2023)
• Ratio of hazardous waste (global)
  45% (2019)

  ➡ 37% (2023)
• Water consumption (global)
  0.44 kL/ton of production (2019)

  ➡ 0.47 kL/ton of production (2023)

Measures to strengthen resources based on our medium- to long-term management strategy

• Declaration of support for the TCFD and expansion of climate change-related measures and information disclosure
• Sustainable use of resources and protection of environment/biodiversity
• Mitigating environmental impact through the development of eco-friendly products

Links to related pages