Financial and ESG Data

The most recent financial results and earnings forecast, graphs of selected financial and non-financial data, and ESG information

Font Size

Latest Results and Forecast

Latest Results

<Consolidated Financial Results for the Six Months Ended June 30, 2022 (January 1, 2022 to June 30, 2022)>

During the six months ended June 30, 2022, consolidated revenue of the Nippon Paint Group increased by 29.1% from the corresponding period of the previous year (same hereafter) to ¥622,049 million. This is primarily due to the acquisition on January 20, 2022 of European paint manufacturer Cromology Holding SAS (Cromology) and the acquisition on May 31, 2022 of European paint manufacturer DB JUB delniška družba pooblaščenka d.d. (JUB) by NPHD, as subsidiaries, and the depreciation of the Japanese yen, combined with the strong performance underpinned by continuous selling price increases in the decorative paints business in China, which is a key business of the Nippon Paint Group. Consolidated operating profit decreased by 9.7% to ¥44,202 million due mainly to raw material price increases in every region and recording of an additional provision for potential credit loss in China. Consolidated profit before tax decreased by 13.2% to ¥41,998 million, and profit attributable to owners of parent decreased by 14.2% to ¥28,557 million.

Summary of reportable segments

The Nippon Paint Group’s operations are classified into business segments for which separate financial information is available and are subject to periodical evaluation by the Board of Directors, which is the highest decision-making body, in order to make decisions regarding management resource allocation and performance assessments. The Group’s primary businesses are the paint and coating business which manufactures and sells automotive coatings, decorative paints, industrial coatings, fine chemicals, and other paints, and the paint related business which manufactures and sells paint-related products such as adhesives. An independent local company and companies overseen by this company are responsible for business activities in Japan, and independent local companies, led by Nipsea and DuluxGroup, are responsible for the Asia, Oceania, and other overseas regions. Other independent local companies are responsible for Americas. Each company constitutes an individual management unit which makes decisions about items to carry and comprehensive strategies for each region to foster business growth. As a result, the Group consists of four reportable segments divided by management unit or region with a manufacturing and sales structure as a base: Japan, Nipsea, DuluxGroup, and Americas. The Japan segment includes the overseas marine coatings business. The Board of Directors of NPHD approved a resolution at the Board of Directors on August 10, 2021 to dissolve and liquidate NPE and the shares of NPI, NPAE, and BNPA were transferred to INC on August 27, 2021. As a result, these businesses have been classified as discontinued operations and excluded from the segment information. The segment information for the three months ended March 31, 2021 are amounts for continuing operations only, excluding discontinued operations.

Reclassified reportable segments by management unit or region from 1Q 2022

Change in Reportable Segment Key points
  • ①Overseas business of marine coatings is in Japan segment (previously included in Asia segment)
  • ②Spun off divisions other than functions as a listed company and a pure holding company to establish NPCS*, and NPCS expenses are included in Japan segment (previously included in Adjustments)
  • ③Betek Boya and Nippon Paint Turkey are in Nipsea segment (previously included in Other)
  • ④Newly consolidated Cromology in in DuluxGroup segment. Plan to allocate JUB, whose acquisition is scheduled for completion end May 2022, also to DuluxGroup segment

*Nippon Paint Corporate Solutions

Japan

Revenue from sales of automotive coatings decreased because the number of automobiles manufactured declined as a result of semiconductor chip shortage and other factors. Industrial coatings revenue increased, driven by solid new housing starts and other favorable market conditions. Decorative paints revenue increased due to improved market conditions.
As a result, consolidated revenue increased by 1.0% to ¥87,466 million. Consolidated operating profit decreased by 64.1% to ¥2,533 million because of raw material price increases. Beginning with the first quarter, all businesses other than businesses related to functions as a listed company and a pure holding company whose expenses were previously presented under “Adjustments” were spun off and moved to the Japan segment. The aim of this change is to more appropriately reflect the operating results of each reportable segment.

Nipsea

Revenue from sales of automotive coatings increased due to a positive foreign exchange impact and other factors, despite a decline in the number of automobiles manufactured in China because of semiconductor chip shortage, disruptions of parts supply, lockdowns caused by the pandemic, and other factors. Revenue from decorative paints was higher owing to the sustained paint demand for repainting interiors of existing homes in China and aggressive selling price increases in major markets including China, Malaysia, Indonesia, and Turkey.
As a result, consolidated revenue increased by 24.7% to ¥340,083 million. Consolidated operating profit decreased by 39.7% to ¥22,382 million due primarily to increases in raw material prices.

DuluxGroup

Cromology’s earnings are consolidated on the Nippon Paint Group’s financial statements beginning with January 2022 and of JUB beginning with June 2022. Revenue from sales of decorative coatings increased due to progress with selling price increases in Oceania and Europe. Revenue in the paint related business was robust due to progress with selling price increases of every brand in Oceania, and strong sales of External Thermal Insulation Composite Systems (ETICS) in Europe.
As a result, consolidated revenue increased by 74.8% to ¥147,115 million, and consolidated operating profit increased by 46.2% to ¥16,095 million.

Americas

Revenue from sales of automotive coatings increased, driven by higher production of automobiles in the United States, a core region, backed by vigorous demand, despite continuing semiconductor chip shortage and other factors. Decorative paints revenue increased because of factors such as solid housing demand and favorable weather.
As a result, consolidated revenue increased by 23.3% to ¥47,383 million. Consolidated operating profit increased by 85.0% to ¥5,065 million.

Revenue composition by region
(Million yen)
Revenue composition by region
Japan: 87,466
Nipsea: 340,083
DuluxGroup: 147,115
Americas: 47,383
Revenue composition by business
(Million yen)
Revenue composition by business
Automotive coatings: 72,092
Decorative paints: 403,291
Industrial coatings: 44,386
Fine chemicals: 9,046
Other paints: 31,072
Paint related business: 62,160

Revenue (cumulative results)

Graph of RevenueGraph of Revenue

(Million yen)


1Q 2Q (cumulative) 3Q (cumulative) Full year
FY2022*3 284,096 622,049 - -
FY2021*2 222,678 481,787 736,257 998,276
FY2020*1 162,916 345,440 556,581 772,560
FY2019 147,359 312,424 495,119 692,009

*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 3Q FY2020 cumulative period and full year FY2020 have been adjusted retrospectively to the amounts for continuing operations.
*2: 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.
*3: Following the business transfer for the Wuthelam Group announced on August 10, 2021, the European automotive coatings business and the two India businesses have been classified as discontinued operations. Also, hyperinflation accounting has been applied for our Turkish subsidiaries beginning with 2Q FY2022. The figures for the 2Q FY2022 cumulative period have been adjusted for the application of this accounting policy.


Operating profit (cumulative results)

Graph of Operating profitGraph of Operating profit

(Million yen)


1Q 2Q (cumulative) 3Q (cumulative) Full year
FY2022*3 24,335 44,202 - -
FY2021*2 24,699 48,961 66,737 87,615
FY2020*1 15,234 34,669 64,687 87,594
FY2019 20,129 41,945 66,479 78,060

*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 3Q FY2020 cumulative period and full year FY2020 have been adjusted retrospectively to the amounts for continuing operations. Figures for the full year FY2020 have been adjusted retrospectively to reflect a change in the accounting policy for configuration or customization costs in a cloud computing arrangement implemented beginning with the 4Q FY2021.
*2: 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 the 1Q, 2Q, and full year 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.
*3: 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 FY2022 are amounts for continuing operations excluding discontinued operations. Also, hyperinflation accounting has been applied for our Turkish subsidiaries beginning with 2Q FY2022. The figures for the 2Q FY2022 cumulative period have been adjusted for the application of this accounting policy.

Profit attributable to owners of parent (cumulative results)

Profit attributable to owners of parentProfit attributable to owners of parent

(Million yen)


1Q 2Q (cumulative) 3Q (cumulative) Full year
FY2022*3 18,072 28,557 - -
FY2021*2 16,342 33,274 50,308 67,569
FY2020*1 7,470 16,890 31,637 43,921
FY2019 10,648 20,939 32,697 36,717

*1: Figures for the 1Q and full year FY2020 have been adjusted to reflect a change in the accounting policy for configuration or customization costs in a cloud computing arrangement implemented beginning with the 4Q FY2021.
*2: The figures for the 1Q, 2Q (cumulative), and full year 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.
*3: Hyperinflation accounting has been applied for our Turkish subsidiaries beginning with the 2Q (cumulative) period. The figures for 2Q (cumulative) FY2022 have been adjusted for the application of this accounting policy.

Earnings Forecast

<FY2022 Forecast> *August 10, 2022

We have decided to increase our revenue forecast for FY2022, taking into consideration continuous selling price increases in each business, mainly in our core decorative paints business, the weaker yen against major currencies compared to the exchange rate assumed at the beginning of the current year, new consolidation effects expected following the completion of acquisition of shares of European paint manufacturer DP JUB delniška družba pooblaščenka d.d. on May 31, 2022.

Regarding profit items, we expect to offset the impact of higher-than-expected raw material prices by selling price increases and reduced SG&A expenses, coupled with an earnings boost from the weaker yen. In the meantime, we disclosed a possibility of recording a provision for potential credit loss in China on May 13, 2022. In this regard, we have factored in recording an additional provision, on top of the 13.0 billion yen recorded in the 2Q 2022, assuming a case where our credit risk will increase due to further changes in the Chinese real estate market conditions, financial positions of real estate developers and other factors.

Inflation in Turkey is running at an accelerated pace, and the cumulative inflation rate in Turkey over three years based on the consumer price index has exceeded 100%. As a result, we have determined that our Turkish subsidiaries, which uses Turkish lira as its functional currency, is conducting sales activities in a hyperinflationary economy. Accordingly, we have made accounting adjustments on its financial statements in accordance with the requirements provided for in IAS 29 "Financial Reporting in Hyperinflationary Economies".

Based on the above factors, we have decided to slightly reduce our forecast for operating profit, profit before tax and profit attributable to owners of parent for the fiscal year ending December 31, 2022 from the previous forecast.

(Billion yen)


2020*1
Results
2021*1
Results
2022 FY2021 Results
vs.
Aug. Forecast
Feb. Forecast
vs.
Aug. Forecast
Feb. Forecast Aug. Forecast
(Revised)
Revenue 772.6 998.3 1,200.0 1,320.0
32.2%
10.0%
Operating profit 87.6 87.6 115.0 105.0
19.8%
-8.7%
OP margin 11.3% 8.8% 9.6% 8.0%
-0.8pt
-1.6pt
Profit before tax 89.4 86.5 113.0 100.0
15.7%
-11.5%
Profit*2 45.7 66.6 81.0 72.0
8.1%*3 -11.1%

*1: The figures for FY2020 and FY2021 have been adjusted retrospectively to reflect the following: (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 and (2)The accounting policy for configuration or customization costs in cloud computing agreements was implemented beginning with 4Q FY2021.
*2: FY2020 and FY2021 results show profit attributable to owners of parent; FY2022 forecast shows profit attributable to owners of parent.
*3: Calculated using profit attributable to owners of parent from continued operations for FY2021 (results)


Assumptions for FY2022 Forecast (New Business Segment Basis)

(Billion yen)


FY2021 Results*1
(Tanshin basis)
FY2022 Outlook (In Local Currency)
Feb. 2022 Forecast Aug. 2022 Forecast
Revenue OP margin YoY
(Revenue)
YoY*2
(OP margin)
YoY
(Revenue)
YoY*2
(OP margin)
YoY
(OP margin)
vs As of Feb.
Japan Segment total 174.0 5.5% +10~15%
right arrow
c. +10%
right arrow
Inline
Automotive 35.3
+10~15%
c. +5%

Decorative 45.4
c. +10%
c. +10%

Industrial 38.1
+10~15%
+10~15%

Nipsea
China
Segment total 379.1 9.5% +10~15%
right arrow
+15~20%
down arrow
Below
Decorative(DIY) 312.4

+10~15%
+15~20%

Decorative(Project)
+10~15%
+0~5%

Automotive 38.4
+5~10%
+5~10%

Asia
Excepting
Nipsea
China
Segment total 192.5 17.1% +5~10%
right arrow
+15~20%
down arrow
Below
PT Nipsea
(Indonesia)
39.5 29.7% +5~10%
up arrow
+10~15%
down arrow
Below
Betek Boya
(Turkey)
49.2 15.2% +10~15%
down right arrow
c. +90%
down arrow
Below
DuluxGroup DuluxGroup
(Oceania)
176.2 10.8% c. +5%
arrow up right
+5~10%
right arrow
Inline
Cromology
(Europe)
(For reference)
91.9
(For reference)
8.9%
+0~5%
down arrow
+0~5%
down arrow
Below
JUB
(Europe)
(For reference)
11.3
(For reference)
8.9%
- - - - -
Americas Segment total 76.4 4.7% c. +10%
up arrow
c. +10%
up arrow
Slightly Below
Automotive 23.3
+15~20%
c. +10%

Decorative 51.8
c. +5%
+5~10%

*1: Pro forma figures
*2: up arrow≧+2%, arrow up right+1~2%, right arrow-1~+1%, down right arrow-1~ー2%, down arrow≦-2%



Links to related pages

This website requires some functions similar to those of cookies.
If you allow our cookies, we use them to collect statistical data about your visit to improve our service. Videos are also presented by using YouTube. Cookies and other means are used only when you opt to watch videos. If you do not allow our cookies, only technical cookies are used.
Click/tap here for details.