NOTICE: For the convenience of capital market participants, NIPPON PAINT HOLDINGS CO., LTD. makes efforts
to provide English translations of the information disclosed in Japanese, provided that the original Japanese version
prevails over its English translation version in the case of any discrepancy found between the original and translation.

Consolidated Financial Results
for the Three Months Ended March 31, 2018
[Japanese GAAP]May 15, 2018
Company name: NIPPON PAINT HOLDINGS CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Code number: 4612
URL: http://www.nipponpaint-holdings.com/
Representative: Tetsushi Tado, Representative Director and President
Contact: Yukiko Mochida, General Manager of Corporate Communication
Phone: +81-6-6455-9140
Scheduled date filing quarterly securities report: May 15, 2018
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: Yes(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Three Months Ended March 31, 2018 (January 1, 2018 to March
31, 2018)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Three months ended Million yen%
Million yen%
Million yen%
Million yen%
March 31, 2018
148,171
9.1
15,417
4.1
17,157
9.5
9,133
56.0
March 31, 2017
135,780
16,074
15,6655,856
Note: Comprehensive income: Three months ended March 31, 2018: ¥(9,133) million [ - %]Three months ended March 31, 2017: ¥(2,397) million [ - %]Basic earnings per
Diluted earnings per
share
share
Three months ended
Yen
Yen
March 31, 2018
28.48
28.47
March 31, 2017
18.26
18.26
The Company has changed its fiscal year-end from March 31 to December 31 from the fiscal year ended
December 31, 2016. Accordingly, percentage changes from the previous corresponding period are not presented,
since the consolidation periods for the three months ended March 31, 2017 (January 1, 2017 to March 31, 2017)
and for the corresponding period for three months ended June 30, 2016 (April 1, 2016 to June 30, 2016) differ
from each other.

(2) Consolidated Financial Position
Total assets

Net assets

Million yen

Equity ratio

Million yen%

As of March 31, 2018885,010
610,638
As of December 31, 2017
920,591
629,408
Reference: Equity: As of March 31, 2018: ¥487,475 million
As of December 31, 2017: ¥504,336 million

55.1
54.8

2. Dividends
1stquarter-end
Yen

Annual dividends
2nd
3rd
Year-endquarter-end quarter-end
Yen

Yen

Total

Yen

Fiscal year ended
20.00
22.00
December 31, 2017
Fiscal year ending
December 31, 2018
Fiscal year ending
December 31, 2018
22.00
23.00
(Forecast)
Note: Revision to the forecast for dividends announced most recently: No

Yen

42.00

45.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2018 (January 1, 2018 to
December 31, 2018)(% indicates changes from the previous corresponding period.)
Basic earnings
Profit attributable
Net sales
Operating income
Ordinary income
to owners of parent
per share%

Million yen%

Yen

First half
310,000
6.3
33,000(7.0)
35,000(4.3)
Full year
650,000
7.4
78,0004.1
82,0006.7
Note: Revision to the financial results forecast announced most recently: No

Million yen%

Million yen%

Million yen

15,00035,500

(2.9)
(4.4)

46.77
110.69

* Notes:(1) Changes in significant subsidiaries during the period under review: No(2) Accounting treatments adopted specially for the preparation of quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates and restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Restatement: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2018: 325,402,443 shares
December 31, 2017: 325,402,443 shares2) Total number of treasury shares at the end of the period:
March 31, 2018: 4,700,671 shares
December 31, 2017: 4,700,301 shares
3) Average number of shares during the period:
Three months ended March 31, 2018: 320,701,961 shares
Three months ended March 31, 2017: 320,703,804 shares*These consolidated financial results are outside the scope of audit by Certified Public Accountants or auditing
corporations.
*Explanation of the proper use of financial results forecast and other notes(Caution concerning forward-looking statements)
The earnings forecasts and other forward-looking statements herein are based on information currently available to
the Company and certain assumptions that are judged to be reasonable, and the Company does not in any way
guarantee the achievement of the projections. Actual results, etc. may differ greatly from the forecast figuresdepending on various factors. For the assumptions underlying the forecasts and precautions when using theforecasts, please refer to “1. Qualitative Information on Quarterly Financial Results for the Period under Review (3)Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information” on page 4 of the
Attachment.

Table of Contents
1. Qualitative Information on Quarterly Financial Results for the Period under Review .................................... 2(1) Explanation of Operating Results ............................................................................................................... 2(2) Explanation of Financial Position .............................................................................................................. 4(3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information ........... 4
2. Quarterly Consolidated Financial Statements and Primary Notes ................................................................... 5(1) Quarterly Consolidated Balance Sheets ....................................................................................................... 5(2) Quarterly Consolidated Statements of Income and Comprehensive Income ............................................... 7(3) Notes to Quarterly Consolidated Financial Statements ................................................................................ 9(Notes on going concern assumption) ................................................................................................... 9(Notes in the case of significant changes in shareholders’ equity) .......................................................... 9(Accounting treatments adopted specially for the preparation of quarterly consolidated financial
statements) .............................................................................................................................................. 9(Segment information, etc.) ................................................................................................................... 10

1

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
The period of consolidation for the three months ended March 31, 2018 is the three months from January
to March 2018.
During the three months ended March 31, 2018, consolidated net sales of the Company and its groupcompanies (collectively, the “Group”) increased by 9.1% from the corresponding period of the previous year(the “previous year”), to ¥148,171million. Consolidated operating income decreased by 4.1% from the previous
year, to ¥15,417million due to the effects of an increase in raw material prices, and consolidated ordinary
income increased by 9.5% from the previous year, to ¥17,157million mainly due to the subsidy income related
to the removal of a factory resulting from an environmental regulation in China. Profit attributable to owners ofparent increased by 56.0% from the previous year, to ¥9,133million due to the extraordinary profit posted for thesale of land following the closure of Neyagawa office.
Results by business segment are as follows.
Japan
In this region, although the number of automobiles manufactured was slightly lower than the previous year,
net sales of automotive coatings were higher than the previous year due to factors such as favorable shipments
of premium design and high value-added coatings and efforts to expand our market share. As for industrial
coatings, due to weak shipments of coatings for construction materials affected by unfavorable market, net
sales were lower than the previous year. As for trade-use paints, despite of the sluggish market conditions in theretail sector since last year, net sales were higher than the previous year due to factors such as efforts to expand
our market share in the sector by introducing new products.
As a result of these factors, consolidated net sales for the Japan segment increased by 1.6% from theprevious year, to ¥41,956 million. Consolidated operating income increased by 12.8% from the previous year,to ¥10,253 million. ¥3,390 million of dividend income from overseas group companies (¥1,825 million in theprevious year) is included in Consolidated operating income. All of this dividend income is eliminated as aninternal transaction under “Inter-segment transaction eliminations and other adjustments.”

Asia
In this region, net sales for automotive coatings in China, a core region, were higher than the previous year
due to the expansion of sales to Chinese manufacturers. As for trade-use paints, net sales were higher than theprevious year, owing to implementation of sales promotion campaigns. In industrial coatings, net sales werelower than the previous year, owing primarily to weak shipments of coatings for construction materials affectedby unfavorable market.
In the Asia region excluding China, net sales for automotive coatings were higher than the previous year
due to an increase in number of automobiles manufactured in Thailand by Japanese manufacturers. Additionally,
net sales of trade-use paints were strong in Singapore and Vietnam.
As a result of these factors, consolidated net sales for the Asia segment increased by 7.0% from theprevious year, to ¥84,409 million. Consolidated operating income decreased by 7.3% from the previous year, to¥7,898 million due to the effects of an increase in raw material prices.
Americas
In this region, net sales for automotive coatings decreased from the previous year, partly due to the effects
of exchange rate in addition to a decline in the number of automobiles manufactured in the United States, acore region. In trade-use paints, consolidated net sales increased year on year with the results of DUNN2EDWARDS CORPORATION, which was consolidated in March 2017, contributing to the sales for the full
three months compared to one month in the previous year.
As a result of these factors, consolidated net sales for the Americas segment increased by 48.8% from theprevious year, to ¥17,932 million. Consolidated operating income was ¥567 million, an increase of 705.7%
from the previous year. Consolidated operating income of the three months ended March 31, 2017 included
expenses related to the acquisition of stock of DUNN-EDWARDS CORPORATION.
Other
In this geographic segment, regarding automotive coatings, with number of automobiles manufactured
decreasing, consolidated net sales were ¥3,873 million, an increase of 8.6% from the previous year mainly due
to favorable shipments to French manufacturers and Consolidated operating income was ¥38 million, adecrease of 82.6% from the previous year mainly due to the aggravating effects of product mix.

3

(2) Explanation of Financial Position
Total assets at the end of the first quarter of the fiscal year under review decreased by ¥35,580 million
from the end of the previous fiscal year to ¥885,010 million. Current assets decreased by ¥9,782 million,
mainly due to an increase in accounts receivable – trade, offset by a decrease in cash and deposits and securities.
Additionally, non-current assets decreased by ¥25,797 million from the end of the previous fiscal year,
primarily caused by factors such as decreases in trademark rights and goodwill due to the amortization andlower value of investment securities by the fall in share prices.
Liabilities decreased by ¥16,811 million from the end of the previous year to ¥274,371 million. The
decrease was mainly attributable to a decrease in loans payable and deferred tax liabilities.
Net assets decreased by ¥18,769 million from the end of the previous fiscal year to ¥610,638 million. Thiswas mainly attributable to an increase in retained earnings due to the recording of profit attributable to ownersof parent offset by a decrease in valuation difference on available-for-sale securities and foreign currencytranslation adjustment.
As a result, equity ratio increased from 54.8% at the end of the previous fiscal year to 55.1%.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information
There are no revisions from consolidated financial results forecast for the six months ending June 30, 2018
and for the full year ending December 31, 2018 announced on February 14, 2018.

4

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of December 31, 2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims - operating
Securities
Inventories
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Trademark right
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

5

As of March 31, 2018

103,007
153,922
15,40237,477
68,406
7,278
20,800(4,394)401,900

93,239165,052
14,81630,42868,044
7,400
18,226(5,090)392,11764,02978,850142,880

63,20376,015
139,218

197,051
61,87054,295313,216

184,81258,222
51,622
294,657

57,619
1,143
3,912
(82)
62,593
518,690920,591

54,088
1,137
3,836
(45)
59,017492,892
885,010(Million yen)
As of December 31, 2017
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Income taxes payable
Provision for product compensation
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Provision for directors’ retirement benefits
Provision for environmental measures
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

6

As of March 31, 2018

79,94022,38025,354
6,046
2,340
63,150199,21280,314
20,694
26,3106,294
36564,059198,037

31,74133,337191264
17,398
9,037
91,970291,182

21,04730,393
177
298
17,1407,277
76,334274,371

78,862
63,262
385,369(6,454)
521,040

78,862
63,262
387,447(6,455)523,116

12,068(25,387)(3,384)(16,703)
136
124,934
629,408
920,591

10,358(42,889)(3,110)(35,641)
154
123,009
610,638
885,010

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Three Months Ended March 31, 2018

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodSubsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

For the three months ended
March 31, 2017
135,780
79,81855,961
39,887
16,074(Million yen)
For the three months ended
March 31, 2018
148,171
89,84458,32742,90915,417

295
95

245
135

131

250

240
740
1,503

1,895
517
3,043

228
1,539
144
1,912
15,665

287
325
691
1,303
17,157

11
11

2,177
2,177

80
80
15,596
5,298
10,298
4,442
5,856

116
116
19,2185,816
13,401
4,268
9,133

7

Consolidated Statements of Comprehensive Income
Three Months Ended March 31, 2018
(Million yen)

ProfitOther comprehensive income

For the three months ended
March 31, 201710,298For the three months ended
March 31, 2018
13,401(1,674)(12,298)
1,099(1,656)(20,453)
268

176

(694)

(12,696)(2,397)(22,535)(9,133)(3,816)
1,418(9,804)
671

Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests8(3) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
There is no relevant information.

(Notes in the case of significant changes in shareholders’ equity)
There is no relevant information.

(Accounting treatments adopted specially for the preparation of quarterly consolidated financial statements)
Calculation of tax expenses
Tax expenses have been calculated by multiplying profit before income taxes by an effective tax rate,
which is reasonably estimated after the application of tax effect accounting to profit before income taxes forthe consolidated fiscal year including the first quarter of the fiscal year under review.

9(Segment information, etc.)[Segment information]
I. For the three months ended March 31, 2017
1. Information on net sales and income (loss) by reportable segment(Million yen)
Reportable segment
Japan

Asia

Americas

Subtotal

Other(Note)Net sales to outside customers

41,291

78,87012,052132,213

3,566

135,780

Inter-segment net sales or transfers

7,303

755

46

8,105

233

8,338

Total

48,594

79,625

12,098140,318

3,800

144,119Total

Net sales

Segment income
9,093
8,516
70
17,680220
17,900Note: “Other” represents business segments that are not included in the reportable segments, and contains
business activities by overseas subsidiaries in Europe, etc.
2. Difference between total reportable segment income (loss) and the amount recorded in the quarterly
consolidated statements of income, and major details of such difference (matters related to adjustments ofdifference)(Million yen)
IncomeAmountTotal reportable segment income

17,680Net income from “other”

220

Inter-segment transaction eliminations and other adjustments(1,826)

Operating income recorded in the quarterly consolidated
16,074statements of income
Note: “Inter-segment transaction eliminations and other adjustments” includes inter-segment dividend income.
3. Information on products and services(Million yen)Nets sales to outside customers

Change from the previous year(%)

AmountPaint business

131,215－

Automotive paint36,935－Trade-use paint64,550－Industrial paint17,548－Other paint12,180－Fine chemical business

4,564

－

Total

135,780－

Notes: 1. Consumption taxes are not included in these amounts.
2. During the previous fiscal year, the fiscal year-end was changed from March 31 to December 31. As
10

a result, the period for comparison for the three months ended March 31 2017 differs, and change
from the previous year is not provided.

11

II. For the three months ended on March 31, 2018
1. Information on net sales and income (loss) by reportable segment(Million yen)
Reportable segment
Japan

Asia

Americas

Subtotal

Other(Note)Net sales to outside customers

41,956

84,40917,932

144,298

3,873

148,171

Inter-segment net sales or transfers

8,892

640

49

9,582

181

9,764

Total

50,84985,04917,982

153,881

4,054

157,936

10,253

7,898

567

18,71938

18,758Total

Net sales

Segment income

Note : “Other” represents business segments that are not included in the reportable segments, and contains
business activities by overseas subsidiaries in Europe, etc.
2. Difference between total reportable segment income (loss) and the amount recorded in the quarterly
consolidated statements of income, and major details of such difference (matters related to adjustments ofdifference)(Million yen)
IncomeAmountTotal reportable segment income

18,719Net income from “other”

38

Inter-segment transaction eliminations and other adjustments(3,340)Operating income recorded in the quarterly consolidated
15,417statements of income
Note: “Inter-segment transaction eliminations and other adjustments” includes inter-segment dividend income.
3. Information on products and services(Million yen)Nets sales to outside customers

Change from the previous fiscal
year (%)

Amount143,422

9.3

Automotive paint40,733

10.3

Trade-use paint74,28815.1

Industrial paint16,075(8.4)

Other paint12,325

1.2

Fine chemical business

4,749

4.0

Total

148,171

9.1

Paint businessNote: Consumption taxes are not included in these amounts.

12