Latest Results

Consolidated Financial Results for the Six Months Ended June 30, 2025 (January 1, 2025 to June 30, 2025)

For the six months ended June 30, 2025, Nippon Paint Group’s consolidated revenue rose 4.3% year-on-year to ¥852,428 million. The increase was mainly attributable to contributions from LSF11 A5 TopCo LLC (AOC), including AOC, LLC, a global specialty formulator, and its affiliated companies, subsequent to the completion of its acquisition in March 2025. Consolidated operating profit climbed 31.1% to ¥121,175 million, while profit before tax advanced 29.1% to ¥116,045 million. Profit attributable to owners of parent also grew 34.4%, reaching ¥87,454 million.

*DuluxGroup Limited is an Australian company that holds the rights to the Dulux® trademark exclusively in Australia, New Zealand, Papua New Guinea, Samoa and Fiji. DuluxGroup Limited is not affiliated with, nor connected to, the owners of the Dulux® trademark in other regions and does not sell Dulux® products outside these designated markets.
* As a specialty formulator, the company is engaged in the formulation development, manufacturing, and distribution of unsaturated polyester (UP), vinyl ester (VE), and other solutions for CASE (Coatings, Adhesives, Sealants, and Elastomers), colorants, and composites. These products are used in construction, infrastructure, transportation, marine and other applications.
*“AOC” has been added as a new reportable segment starting from the FY2025 first quarter of the period under review.

Japan

In Japan, revenue from automotive coatings increased, supported by a recovery in automobile production. Industrial coatings revenue remained largely unchanged, as the favorable impact of pricing flow-through was offset by softer market conditions. Revenue from decorative paints decreased year-on-year, despite our efforts to boost sales of high value-added products, including new products, due to the decline in renovation projects caused by inflation.
As a result, consolidated revenue grew 3.5% year-on-year to ¥100,644 million. Consolidated operating profit increased 9.5% to ¥9,912 million, reflecting higher revenue and an improved SG&A ratio.

NIPSEA

NIPSEA Group recorded higher revenue from automotive coatings, driven by increased automobile production in China and strong sales to Chinese OEMs, which offset the impact of lower production in Thailand. Revenue from decorative paints decreased year-on-year, despite growth in sales volumes in key markets, such as Malaysia, and Singapore, due to deteriorating market conditions including weaker consumer sentiment in other regions in Asia.
As a result, consolidated revenue declined 4.3% from the previous year to ¥438,379 million, while consolidated operating profit rose 12.0% to ¥69,133 million, supported by improvements in the raw materials cost contribution ratio and successful implementation of cost reduction measures.

DuluxGroup

Revenue from decorative paints declined despite modest market share gains and the flow-through of price increases in the Pacific, reflecting weaker market conditions in Europe, particularly in France. Revenue from the adjacencies business also fell, mainly due to soft home improvement demand in the Pacific segment and sluggish demand for ETICS (External Thermal Insulation Composite System) in Europe.
As a result, consolidated revenue decreased 5.0% year-on-year to ¥188,610 million. Consolidated operating profit declined 1.1% to ¥18,359 million.

Americas

In the Americas, revenue from automotive coatings declined, reflecting lower automobile production. Revenue from decorative paints also decreased, due to a decrease in demand caused by the uncertainty in the U.S. economy and weaker housing market.
As a result, consolidated revenue fell 4.8% year-on-year to ¥60,041 million, while consolidated operating profit decreased 19.4% to ¥3,905 million.

AOC

From March 2025, AOC’s income and expenses have been included in the Group’s consolidated results. Revenue from the adjacencies business was impacted by weaker market demand compared with the same period of the prior year, largely due to soft macroeconomic conditions.
As a result, consolidated revenue amounted to ¥64,753 million, while consolidated operating profit was ¥23,020 million.

Revenue composition

Revenue (cumulative results)

Our revenue growth has accelerated due to the accumulation of assets through multiple M&As executed since 2017, as well as the substantial growth of our decorative paints business in Asia, particularly in China. In 2023, we achieved seven consecutive years of revenue growth and record-high revenue, due to increased sales volumes and the flow-through of price increases, primarily in the decorative paints business, along with new consolidation of NPT and the yen’s depreciation.

(Million yen)

*1: Following the business transfer to the Wuthelam Group announced on August 10, 2021, the European automotive coatings business and the two India businesses have been classified as discontinued operations. Figures for the 1Q FY2021, 3Q FY2021 cumulative period, and full-year FY2021 are the amounts for continuing operations excluding discontinued operations.
*2: Hyperinflation accounting has been applied for our Turkish subsidiaries beginning with FY2022 2Q. The figures for FY2022 and FY2023 are adjusted for the application of this accounting policy.
*3: Figures for FY2024 1Q has been restated retrospectively following the finalization of PPA for Alina (Kazakhstan). The same applies to following slides

Operating profit (cumulative results)

Since 2020, our operating profit has seen growth for four consecutive years, keeping pace with our revenue increase. Despite the influence of hyperinflationary accounting in Türkiye, our operating profit reached a record high in 2023, thanks to the growth in revenue and improvement in gross profit margin.

(Million yen)

*1: Following the business transfer to the Wuthelam Group announced on August 10, 2021, the European automotive coatings business and the two India businesses have been classified as discontinued operations. The figures for FY2021 are amounts for continuing operations excluding discontinued operations. The figures for FY2021 have been adjusted to reflect a change in the accounting policy for configuration or customization costs in cloud computing agreements implemented beginning with 4Q FY2021.
*2: Hyperinflation accounting has been applied for our Turkish subsidiaries beginning with FY2022 2Q. The figures for FY2022 and FY2023 are adjusted for the application of this accounting policy.
*3: Following the finalization of PPA on Alina, NPI and BNPA, the earnings in each quarter of FY2024 have been adjusted retrospectively (the earnings for FY2024 3Q and 4Q are pro forma figures)

Profit attributable to owners of parent (cumulative results)

Profit attributable to owners of parent generally aligns with the trends in operating profit and various stages of profit. Since 2020, it has increased steadily for four consecutive years, driven by the growth in operating profit resulting from increased revenue.

(Million yen)

*1: The figures for FY2021 have been adjusted to reflect a change in the accounting policy for configuration or customization costs in cloud computing agreements implemented beginning with 4Q FY2021.
*2: Hyperinflation accounting has been applied for our Turkish subsidiaries beginning with FY2022 2Q. The figures for FY2022 and FY2023 are adjusted for the application of this accounting policy.
*3: The cumulative earnings for Q2 FY2024 have been retrospectively adjusted following the finalization of the PPA for Alina, NPI, and BNPA.

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