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Our Strengths

Our Strengths

We have four key strengths.

Our Strengths

1. Leading player in the growing paint industry

From a global perspective, paint is a growing industry as demand will certainly increase along with population growth. Furthermore, paint has stable growth unlike the volatility in the general chemical industry. The world’s population is expected to increase from 7.8 billion to 8.5 billion over the next decade. Accompanying this population growth, paint market is projected to grow 1.5 times over the same period, driven by growth in China and other Asian countries.

Paint market is expected to witness strong global growth

Graph of Painting Industry Market Size

Note: Company estimates

The top 10 paint companies have a global market share of about 50%, and the remainder of this market consists of a large number of small and midsize companies. As a result, there will be ample opportunities to capture market share and utilize M&A. We foresee more demand in categories that require the environmental expertise, financial strength or other resources that only a large company has. We thus expect to grow via both market growth and share gain.
Our operations are well balanced with decorative paints at 55% of our revenue.

2. Unparalleled market position in Asia / China

NPHD has a leading position in decorative paints, as well as China and other Asian regions. We operate in 15 geographical locations in Asia and this represents 52% of our consolidated revenue.
In the DIY sector, due to the powerful LiBang brand, we have market shares of 36% in China, 71% in Singapore and 43% in Malaysia.

Figure of Unparalleled market position in Asia / China

3. Promotion of M&A with Spider Web Management

In addition to steady growth, the paint industry is also characterized by extremely stable cash flows. Furthermore, this industry is an ideal place for M&A activity as funds can be procured now at very low interest rates.
Our priority is to seek M&A deals that will help maximize shareholder value. We will not do a merger or acquisition solely to become larger. We have and will reject deals that would reduce our financial soundness or not contribute to growth of earnings per share.

Capable of fully leveraging the advantage of industrial structure and market environment for M&A

Capable of fully leveraging the advantage of industrial structure and market environment for M&A

Building trust-based partnerships between the CEOs of regional and subsidiary companies
Intra-Linked structure to generate synergies through spider web management

The NPHD Group has adopted spider web management, which allows group companies in Japan and other countries to identify opportunities for synergy, not radiation type management where the head office gives all directions, in order to create new value through close collaboration between group companies.

Chart of Spider Web Management

4. Advanced governance

We have taken many steps to establish a global governance structure. In 2018, we significantly increased the number of independent outside directors.
Following the March 2020 shareholders meeting, we adopted a corporate governance structure where six of our nine directors are independent outside directors (66.6% of the total), with the aim to protect the interests of minority shareholders and ensure the independence and objectivity of the board.
In addition, we shifted to a Company with Three Committees structure with the idea that there is a need to separate the role of directors from business management so that the board can concentrate on understanding strategies and overseeing the group’s management. This structure will allow us to make agile management decisions in response to rapid changes in our market worldwide, while encouraging executives to accept a suitable amount of risk.

Enhancing transparency, objectivity and fairness of management

Enhancing transparency, objectivity and fairness of management

Enhancing transparency, objectivity and fairness of management

  • BoD will ensure the independence and objectivity by appointing 6 out of 9 directors as independent outside directors (66.6% of total)
  • Highly experienced 6 independent outside directors, including a female director
  • CEO does not belong to any of the Nominating Committee, Remuneration Committee and Audit Committee
    →Protection of Minority Shareholder Rights (Role of BoD)

Separating/strengthening of supervisory function and execution

  • While transferring authorities to management, the BoD enhances its supervisory function
  • BoD will have more focus on business strategy discussion rather than each individual projects
  • Allows agile management decisions to deal with global issues

Strengthening global audit

  • Shift to the Audit Committee structure to promote functionality/appropriateness audit function
  • Strengthening global business audit system through Audit Committee and Audit Department

NPHD adopted a board structure where six of our nine directors are outside directors. In addition, we established three committees (Nomination, Audit and Remuneration Committees), each chaired by an independent outside director. President and CEO is not a member of any of the committees.
Our outside directors have qualities necessary to contribute to achieving our group’s sustainable growth and medium- and long-term maximization of shareholder value, as well as high levels of expertise and extensive experience in their fields of specialization such as corporate management, accounting or legal affairs.

Board structure

  • Goh Hup Jin
    Inside Director

    Goh Hup Jin

    Managing Director of Wuthelam Group


    Managing Director of Wuthelam Holdings (current)

  • Manabu Minami
    Inside Director

    Manabu Minami


    Director of the Board of NPHD (current)

    Former Senior Executive Officer of NPHD in charge of financial strategy

  • Hisashi Hara
    Outside DirectorNominating Committee

    Hisashi Hara


    Attorney of Law

    Former Chairman of Nagashima Ohno & Tsunematsu

    Outside Audit & Supervisory Board Member of Chugai Pharmaceutical (current)

  • Takashi Tsutsui
    Outside DirectorCompensation Committee

    Takashi Tsutsui


    Former Senior Executive Officer of Nomura Securities

    Former President & Representative Director of Jasdaq

  • Toshio Morohoshi
    Outside Director

    Toshio Morohoshi



    Former President & CEO of EMC Japan

    Former President & CEO of Yaskawa Information Systems (currently YE DIGITAL)

  • Masayoshi Nakamura
    Outside Director

    Masayoshi Nakamura

    Lead Independent Director


    Former MD of Lehman Brothers/Morgan Stanley

    Former Director & Senior Executive Officer of Mitsubishi UFJ Securities

  • Masataka Mitsuhashi
    Outside DirectorAudit Committee

    Masataka Mitsuhashi




    Former Representative Director & President of PwC Sustainability

    Audit & Supervisory Board Member (Outside) of FUJIFILM Holdings (current)

  • Miharu Koezuka
    Outside Director

    Miharu Koezuka



    Former Representative Senior Managing Director of Takashimaya

    Outside Director of Japan Post Holdings (current)

Committee composition

  • Hup Jin Goh
  • Hisashi Hara (Chairperson)
  • Toshio Morohoshi
  • Masayoshi Nakamura
  • Hup Jin Goh
  • Takashi Tsutsui (Chairperson)
  • Masayoshi Nakamura
  • Manabu Minami
  • Toshio Morohoshi
  • Masataka Mitsuhashi (Chairperson)
  • Miharu Koezuka

Links to related pages

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