Earnings Forecast
Earnings Forecast
<FY2023 Forecast> *Announced on August 10, 2023
We have decided to increase our revenue forecast for FY2023, taking into consideration sales volume growth and market share gains mainly in the decorative paints business in Asia along with the yen’s depreciation against major currencies compared to the exchange rate assumed at the beginning of the current fiscal year. Furthermore, we anticipate a boost in revenue due to the recent inclusion of N.P.T.s.r.l., a European manufacturer specializing in sealants and adhesives, in the consolidation. This addition follows our successful acquisition of its shares on July 5, 2023.
Regarding profit items, we foresee higher earnings compared to our earlier forecast due to factors such as contributions from higher revenue due to sales volume growth, a lower raw material contribution ratio, and the yen’s depreciation, among other factors.
Based on the above factors, revenue, operating profit, profit before tax, and profit attributable to owners of parent for the fiscal year ending December 31, 2023 are expected to exceed previous forecasts. As a result, we are revising our forecast upward.
(Billion yen)
| Tanshin | 2020*1 Results |
2021*1 Results |
2022 Results |
2023 | |||
|---|---|---|---|---|---|---|---|
| Feb. Guidance |
Aug. Guidance (Revised) |
FY2022 Results vs. Aug. Guidance |
Feb. Guidance vs. Aug. Guidance |
||||
| Revenue | 772.6 | 998.3 | 1,309.0 | 1,400.0 | 1,450.0 | 10.8% | 3.6% |
| Operating profit | 87.6 | 87.6 | 111.9 | 140.0 | 158.0 | 41.2% | 12.9% |
| OP margin | 11.3% | 8.8% | 8.5% | 10.0% | 10.9% | 2.3pt | 0.9pt |
| Profit before tax | 89.4 | 86.5 | 104.5 | 134.0 | 151.0 | 44.5% | 12.7% |
| Profit*2 | 45.7 | 66.6 | 79.4 | 98.0 | 110.0 | 38.5% | 12.2% |
| EPS | ¥27.38 | ¥29.41 | ¥33.82 | ¥41.73 | ¥46.84 | +¥13.02 | +¥5.11 |
*1: Following (1) the classification of the European automotive coatings business and two India businesses as discontinued operations as a result of the transfer of these businesses to the Wuthelam Group that was announced on August 10, 2021 and (2) a change in the accounting policy for configuration or customization costs in a cloud computing arrangement implemented beginning with the 4Q FY2021, figures for FY2020 have been adjusted retrospectively and figures for FY2021 reflect these changes.
*2: Profit in FY2020, FY2021 and FY2022 is profit attributable to owners of parent from continuing operations. Profit forecast for 2023 is profit attributable to owners of parent.
Assumptions for FY2023 Forecast *Announced on August 10, 2023
(Billion yen)
| Revenue | OP margin | ||||
|---|---|---|---|---|---|
| FY2022 Overview Results (Tanshin/bn yen) |
FY2023 Forecast (In LCY*1) Aug. Guidance |
FY2022 Results (Tanshin/%) |
FY2023 Forecast*2 (In LCY*1) Aug. Guidance |
||
| Japan | Segment total | 186.1 | c.+5% | 2.8% |
 |
| Automotive | 35.1 | ▲+5 - 10% | |||
| Decorative | 47.8 | +5 - 10% | |||
| Industrial | 40.0 | ▼c.±0% | |||
| Nipsea China |
Segment total | 450.7 | +5 - 10% | 7.8% |
|
| Decorative (TUC) | 374.2*3 | ▲+20 - 25% | |||
| Decorative (TUB) | ▼c.±0% | ||||
| Automotive | 50.1 | ▼c.±0% | |||
| NIPSEA Except China |
Segment total | 257.8 | ▲+10 - 15% | 14.6% |
 |
| Malaysia Grp. Singapore Grp. Thailand Grp. |
▲+5 - 10% |
|
|||
| PT Nipsea (Indonesia) |
52.3 | c.+15% | 31.9% |
|
|
| Betek Boya (Türkiye) |
70.5 | ▲+40 - 45% | 8.7% |
 |
|
| DuluxGroup | Segment total | 314.9 | +5 - 10% | 9.4% |
|
| DuluxGroup (Oceania) |
206.6 | +5 - 10% | 12.3% |
|
|
| Cromology (Europe) |
97.5 | ▼+0 - 5% | 4.2% |
|
|
| JUB (Europe) |
(For reference) 19.9*4 |
▼c.-5% | (For reference) 4.9% |
|
|
| Americas | Segment total | 99.5 | +0 - 5% | 8.1%*5 |
|
| Automotive | 32.3 | ▲+10 - 15% | |||
| Decorative | 65.7 | ▼-5 - 0% | |||
◆To better reflect our business evolvement, we have reorganized our China decorative business into TUC and TUB (based on distribution channels) which will be applied to FY2023 forecast and onwards
- TUC (Trade Use Consumer): B2C
Business to consumers, DIY business, sales via dealers/distributors and e-commerce to end consumers, etc.
(For reference) 2022 vs. 2021: +10%- TUB (Trade Use Business): B2B
Business to business transactions direct to Project customers and main contractors, etc.
(For reference) 2022 vs. 2021: -14%- Others: Wood coatings, China Hong Kong and China Taiwan businesses, sales of raw materials
(For reference) 2022 vs. 2021: +102%
*1 LCY: local currency
*2 
≧+2%, 
+1～2%, 
-1 - +1%, 
-1 - ｰ2%, 
≦-2%
*3 Including “Others” segment
*4 Calculated on a 12-month basis at 1 EUR=138.5 JPY
*5 Including c.¥2.1 bn gain on sale of Dunn-Edwards’ HQ bldg. and other assets
