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 Fiscal Year Ended December 31, 2016
[Japanese GAAP]
February 14, 2017
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 of annual general meeting of shareholders: March 29, 2017
Scheduled date of commencing dividend payments: March 30, 2017
Scheduled date of filing the securities report: March 30, 2017
Availability of supplementary briefing material on consolidated financial results: Yes
Schedule of consolidated financial results briefing session: Yes(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended December 31, 2016 (April 1, 2016 to December
31, 2016)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Fiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
December 31, 2016
470,161
72,48977,14334,788March 31, 2016
535,746
105.6
71,352111.4
74,60651.4
30,020(83.5)
Note: Comprehensive income: Fiscal year ended December 31, 2016: ¥31,517 million [ - %]Fiscal year ended March 31, 2016: ¥24,284 million [(87.5)%]
Basic earnings
per share

Diluted earnings
per share

Rate of return on
equityTotal assets
Ordinary income
ratio

Net sales
Operatingincome ratio

Fiscal year ended
Yen
Yen
%
%
%
7.4
9.5
15.4
December 31, 2016
108.48108.47
March 31, 2016
93.61
93.60
6.3
9.3
13.3
Reference: Equity in earnings (losses) of affiliates:
Fiscal year ended December 31, 2016: ¥1,315 million
Fiscal year ended March 31, 2016: ¥1,115 million
The Company has changed its fiscal year-end from March 31 to December 31 from the fiscal year ended
December 31, 2016, receiving approval of Partial Amendments of the Articles of Incorporation at the 191st
Annual General Meeting of Shareholders held on June 28, 2016. Accordingly, for the Company and its
subsidiaries with the fiscal year-end of March 31, the consolidation period for the fiscal year ended December
31, 2016, which is the transition period, is the nine months starting on April 1, 2016 and ending on December
31, 2016. As a result, changes from the previous corresponding period have not been provided.
For subsidiaries with fiscal year ended December 31, the consolidation period is the 12 months starting on
January 1, 2016 and ending on December 31, 2016, as before.

(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Million yen

Million yen

Cash flows fromoperating activities
Million yen%

1,475.93
1,464.06

Cash flows frominvesting activities

Cash flows fromfinancing activities

Million yen

Million yen

Cash and cash
equivalents at endof period

77,916
63,101

Annual dividends
2ndquarter-end

3rdquarter-end

Year-end

Million yen(8,583)(24,699)(42,697)(5,308)

2. Dividends
1stquarter
-end

Yen

57.2
59.3

As of December 31, 2016
827,996585,757
As of March 31, 2016
791,459
567,748
Reference: Equity: As of December 31, 2016: ¥473,337 million
As of March 31, 2016: ¥469,533 million(3) Consolidated Cash Flows

Fiscal year ended
December 31, 2016
March 31, 2016

Net assets per
share

Total
dividends
paid(Total)Total

134,515
108,271

Dividend
payoutratio(Consolidated)

Dividend/Net
assets(Consolidated)

%

%

Yen

Yen

Yen

Yen

Yen

Million
yen

-

15.00

-

20.00

35.00

11,224

37.4

2.4

-

20.00

-

20.00

40.00

12,828

36.9

2.7

-

20.00

-

22.00

42.00

Fiscal year ended
March 31, 2016
Fiscal year ended
December 31,
2016
Fiscal year ending
December 31,
2017(Forecast)

36.4

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2017 (January 1, 2017
to December 31, 2017)(% indicates changes from the previous corresponding period.)
Net sales
Million yen%

Operating income

Ordinary income

Million yen

Million yen%%

Profit attributableto owners ofparentMillion yen%

Basic earnings
per share
YenFirst half
265,000
37,50039,00015,50048.33
Full year
540,000
81,00084,00037,000115.37
Due to a change in the fiscal year, the consolidated fiscal year under review is the nine months starting on
April 1, 2016 and ending on December 31, 2016.
As a result, changes from the previous corresponding period have not been provided.

* Notes:(1) Changes in significant subsidiaries during the period ended December 31, 2016 (changes in specified
subsidiaries resulting in changes in scope of consolidation) : No
(2) 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: Yes
3) Changes in accounting estimates: Yes
4) Restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):December 31, 2016: 325,402,443 shares
March 31, 2016: 325,402,443 shares2) Total number of treasury shares at the end of the period:
December 31, 2016: 4,698,228 shares
March 31, 2016: 4,696,460 shares
3) Average number of shares during the period:
Fiscal year ended December 31, 2016: 320,705,193 sharesFiscal year ended March 31, 2016: 320,706,841 shares(Reference) Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the Fiscal Year Ended December 31, 2016 (April 1, 2016 to December 31,
2016)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Operating income
Ordinary income
ProfitFiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
December 31, 2016
25,84320,04920,75420,701March 31, 2016
47,359(35.6)
39,503
166.7
39,62482.1
36,995104.2
Basic earnings
per share

Diluted earnings
per share

Fiscal year ended
Yen
Yen
December 31, 2016
64.55
64.54
March 31, 2016
115.36115.35Due to a change in the fiscal year, the fiscal year under review is the nine months starting on April 1, 2016 andending on December 31, 2016.
As a result, changes from the previous corresponding period have not been provided.
(2) Non-consolidated Financial Position
Net assets per
Total assets
Net assets
Equity ratio
shareMillion yen

Million yen

As of December 31, 2016
322,424
297,382
As of March 31, 2016
314,695
287,264
Reference: Equity: As of December 31, 2016: ¥297,297 million
As of March 31, 2016: ¥287,225 million

%

92.2
91.3

Yen

927.02895.60*Presentation regarding the implementation status of the audit procedures
These consolidated financial results are outside the scope of audit procedures under the Financial Instruments
and Exchange Act, and audit procedures for the consolidated financial statements have not been completed.
*Explanation of the proper use of financial results forecast and other notes
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. Actual results, etc. may differ greatly
from the forecast figures depending on various factors. For the assumptions underlying the forecasts andprecautions when using the forecasts, please refer to “Analysis of Operating Results” on page 2 of the
Attachment.

Table of Contents
1. Analysis Regarding Operating Results and Financial Position ........................................................................ 2(1) Analysis of Operating Results .................................................................................................................... 2(2) Analysis of Financial Position .................................................................................................................... 4(3) Fundamental Policy Regarding Profit Sharing and Dividends for the Fiscal Year Ended December 31,
2016 and Next Fiscal Year ............................................................................................................................ 5
2. Business Combination Status ........................................................................................................................... 6
3. Management Policy ....................................................................................................................................... ...8
(1) Basic Corporate Management Policy ........................................................................................................... 8(2) Medium-term Corporate Management Strategy........................................................................................... 8
4. Basic Approach to Selection of Accounting Standards .................................................................................... 9
5. Consolidated Financial Statements .............................................................................................................. ...10(1) Consolidated Balance Sheets ..................................................................................................................... 10(2) Consolidated Statements of Income and Comprehensive Income ............................................................. 12(3) Consolidated Statements of Changes in Equity ......................................................................................... 14(4) Consolidated Statements of Cash Flows .................................................................................................... 16(5) Notes to Consolidated Financial Statements .............................................................................................. 17(Notes on going concern assumption) ................................................................................................. 17(Basis of presentation of consolidated financial statements)................................................................. 17(Changes in accounting policies that are difficult to distinguish from changes in accounting
estimates) ............................................................................................................................................. 17(Changes in methods of presentation) ................................................................................................... 18(Additional information) ....................................................................................................................... 18(Segment information, etc.) ................................................................................................................... 19(Information on per share) ..................................................................................................................... 22(Significant subsequent events) ............................................................................................................. 22
6. Other ............................................................................................................................................................... 23(1) State of Sales Performance ......................................................................................................................... 23

1

1. Analysis Regarding Operating Results and Financial Position(1) Analysis of Operating Results
During the fiscal year ended December 31, 2016, consolidated net sales of NIPPON PAINT HOLDINGS
CO., LTD. (the “Company”) and its group companies (collectively, the “Group”) stood at ¥470,161 million.
With regard to profits, factors such as expanded sales of high value-added products and continued activities toreduce raw materials costs produced results that absorbed the effects of strong yen, leading to consolidated
operating income of ¥72,489 million (profit margin of 15.4%), consolidated ordinary income of ¥77,143
million (profit margin of 16.4%), and profit attributable to owners of parent of ¥34,788 million (profit marginof 7.4%), all of which indicate that profitability has steadily risen.
The Company has changed its fiscal year-end from March 31 to December 31 from the fiscal year ended
December 31, 2016, receiving approval of Partial Amendments of the Articles of Incorporation at the 191st
Annual General Meeting of Shareholders held on June 28, 2016.
Accordingly, for the Company and its subsidiaries with the fiscal year-end of March 31, the consolidation
period for the fiscal year ended December 31, 2016, which is the transition period, is the nine months startingon April 1, 2016 and ending on December 31, 2016. For subsidiaries with fiscal year ended December 31, theconsolidation period is the 12 months starting on January 1, 2016 and ending on December 31, 2016, as before.
As a result, changes from the previous corresponding period have not been provided. With regard tocomparisons for net sales in each segment, results for the previous fiscal year have been restated to align withthe same period of the fiscal year under review, and compared as “the same period of the previous fiscal year. ”
Results by business segment are as follows.
Japan
In this region, regarding automotive coatings, while the number of automobiles manufactured recoveredfrom the effects of such factors as the Kumamoto Earthquake and slightly exceeded levels during the same
period of the previous fiscal year, efforts to expand market share. As for industrial coatings, as a recovery in theresidential construction materials market was seen as shown by factors such as the number of new housing
starts exceeding the same period of the previous fiscal year, efforts to capture new customers throughdifferentiated products. As for trade-use paints, while market conditions were sluggish due to factors such as
construction delays owing to weather factors, efforts in sales promotion activities via initiatives such as
expanding sales of new products. Meanwhile, regarding other coatings, core marine coatings were affectedheavily by a downturn in market conditions.
As a result of these factors, consolidated net sales for the Japan segment were ¥127,920 million, lower
than during the same period of the previous fiscal year. Consolidated operating income was ¥26,579 million,
owing to activities to reduce raw materials costs, and was higher than the same period of the previous fiscal
year on a basis excluding dividends received from overseas.
Asia
In this region, regarding automotive coatings in China, while the number of automobiles manufactured
increased, efforts to expand market share by promoting cooperation with local companies. As for trade-use
paints, measures included advancing activities at paint resellers and the remodeling market within the paints forhousing interiors sector in China. In other Asian countries as well, as a result of the efforts to expand market
share, net sales were strong. Additionally, regarding automotive coatings in Thailand, while the number of
automobiles manufactured recovered, efforts to expand market share.
Although consolidated net sales for the Asia segment were ¥297,517 million and lower than the same
period of the previous fiscal year, partly due to the effects of strong yen, consolidated operating income
significantly improved profitability to reach ¥43,304 million due to continuous activities to reduce costs.
2

Americas
In this region, a favorable trend in the number of automobiles manufactured in North America was seen, in
addition to a higher ratio of large vehicles produced and a ramping up of operations in Latin America.
Meanwhile, foreign exchange rates had a negative impact. Additionally, continued activities to reduce costs led
to a significant improvement in profitability.
As a result, consolidated net sales for the Americas segment was ¥32,169 million, lower than the same
period of the previous fiscal year. Consolidated operating income was ¥5,147 million, and both sales and profits
were up on a local currency basis.
Other
Consolidated net sales for this geographic segment were ¥12,554 million, higher than the same period of
the previous fiscal year due to the consolidation of a German paint manufacturer, and consolidated operating
loss was ¥365 million partly due to amortization of goodwill.

Outlook for Next Fiscal YearFor the next period (period ending December 31, 2017), a moderate recovery trend is expected in Japan,
and personal consumption is also forecast to be robust. Under such circumstances, the Company strives toexpand market share and capture customers in new parts manufacturers amid a slight increase predicted in thenumber of automobiles manufactured. Efforts will be made to expand market share in trade-use paints bypromoting the introduction of differentiated products that meet customer needs to the market, while inindustrial coatings, new environmentally-conscious products will be introduced to market, all with the intent of
cementing a presence in crucial markets.
Additionally, while price fluctuations in crude oil and naphtha are unpredictable, the three low-pricestrategies the Group has been pursuing (design / procurement / production) will continue to be implemented,
ensuring profits by working toward the continued reduction of costs.
In Asia, deceleration is forecast to continue in emerging markets, mainly in China. Under suchcircumstances, the Company aims to share business strategies with the NIPSEA Group (*), a joint venture in
the region, and by executing business operation as a unified group, aim to further increase added-value for
products and services. Additionally, in China, which serves as the core market, the Company will continue withefforts to reduce raw materials costs under the Chinese Survival Challenge (Lean for Growth), achieving costcompetitiveness and creating and rousing demand against a backdrop of high brand strength.
In the Americas, it is forecast that automotive unit production will continue to trend favorably.
Additionally, through the DUNN-EDWARDS CORPORATION, a USA-based coating manufacturer scheduled
to become a wholly-owned subsidiary in March 2017, the Company will acquire a platform for the construction
paints business, and work to expand business in the Americas, which was previously focused on automotive
coatings. In other regions, it is forecast that automotive unit production will be strong in Europe, and throughthe German paint manufacturer, BOLLIG & KEMPER GMBH & CO. KG which became a wholly-owned
subsidiary in January 2016, the Company strives to expand market share and improve profitability.
As a result of the above factors, our outlook for next fiscal year’s consolidated business performance is¥540.0 billion in net sales, ¥81.0 billion in operating income, ¥84.0 billion in ordinary income, and ¥37.0
billion in profit attributable to owners of parent.
(*) Asian joint venture together with WUTHELAM HOLDINGS LTD., a collaborative partner based in
Singapore3

(2) Analysis of Financial Position
1) Status of Assets, Liabilities, and Net Assets
Total assets at the end of the consolidated fiscal year under review increased by ¥36.54 billion from theend of the previous fiscal year to ¥827,996 million. Current assets increased by ¥53.27 billion from the end of
the previous fiscal year, mainly due to increases in cash and deposits, notes and accounts receivable – tradeand securities. Non-current assets decreased by ¥16.74 billion from the end of the previous fiscal year, primarily
caused by factors such as amortization which led to a decrease in goodwill.
Liabilities increased by ¥18.53 billion from the end of the previous year to ¥242,238 million. The increase
was mainly attributable to increases in notes and accounts payable – trade and interest-bearing debt.
Net assets increased by ¥18.01 billion from the end of the previous fiscal year to ¥585,757 million. Thiswas mainly attributable to increases in retained earnings and non-controlling interests due to the recording of
profit attributable to owners of parent, and a decrease in foreign currency translation adjustment due to astronger yen.
As a result, equity ratio fell from 59.3% at the end of the previous fiscal year to 57.2%.
2) Status of Cash Flows
Business operations for the fiscal year ended December 31, 2016 resulted in an inflow of ¥77,916 million,
investing activities resulted in an outflow of ¥42,697 million, and financing activities resulted in an outflow of¥8,583 million, resulting in cash and cash equivalents (hereinafter “cash”) of ¥134,515 million, an increase of¥26.24 billion compared to the end of the previous consolidated fiscal year.
Additionally, due to a change in the fiscal year, the consolidated fiscal year under review is the nine months
starting on April 1, 2016 and ending on December 31, 2016.
As a result, changes from the previous corresponding period have not been provided.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥77,916 million. Primary factors include an increase inoperating capital of ¥7,023 million and income taxes paid of ¥23,003 million, despite a recording of a cash
inflow (excluding increases and decreases in operating capital) of ¥107,943 million, reflecting mainly non-cash
expenses, such as depreciation and amortization, to profit before income taxes.
(Cash flows from investing activities)
Net cash used in investing activities was ¥42,697 million. This was mainly attributable to an outflow of¥41,146 million due to purchase of securities and property, plant and equipment and payment for the transfer ofa business in India.
(Cash flows from financing activities)
Net cash used in financing activities was ¥8,583 million. Primary factors include cash dividends paid of¥23,672 million, despite proceeds of ¥13,753 million due to an increase in loans payable.

4

(Reference) Change in cash flow-related indexes
188th Period
Year Ended
March 31, 2014

189th Period
Year Ended
March 31, 2015

190th Period
Year Ended
March 31, 2016

191st Period
Year Ended
December 31,
2016

Equity ratio (%)

60.0

59.2

59.3

57.2

Equity ratio based on market valuation(%)
Interest-bearing debt to cash flow ratio(times)

125.8

174.1

101.2

123.4

0.5

0.4

0.4

0.4

Interest coverage ratio (multiplier)

88.8

181.1

171.1

197.1

*Equity ratio: Ownership equity / Total assets
Equity ratio based on market valuation: Market capitalization / Total assets
Interest-bearing Debt to Cash Flow Ratio: Interest-bearing debt / Cash flow
Interest Coverage Ratio: Cash flow / Interest payment
1. All values are calculated using financial values on a consolidated basis.
2. Market capitalization calculated on a basis of total number of issued shares excluding treasury shares.
3. Cash flow values used are operating cash flow.
4. Interest-bearing debts are all liabilities that pay interest among liabilities calculated on the consolidatedbalance sheet.

(3) Fundamental Policy Regarding Profit Sharing and Dividends for the Fiscal Year Ended December 31,
2016 and Next Fiscal YearAs disclosed in the “Revisions to Dividends from Surplus and Dividends Forecasts” announced on
November 6, 2015, the Company holds as its policy in determining the amount of dividends to shareholders toutilize assumptions on an IFRS basis that includes amortization of goodwill.
Additionally, concerning year-end dividends for the fiscal year under review, based on the above dividend
policy, the Company plans on a year-end dividend of ¥20 per share. As a result, total dividends includinginterim dividends will be ¥40 per share, and the consolidated dividend payout ratio will be 36.9% (IFRS base
29.1%).
Additionally, we plan a full-year dividend of ¥42 per share for the next fiscal year.

52. Business Combination Status

The Group consists of the Company, 123 subsidiaries, 8 affiliates, and 4 other related companies, and its
primary business is the manufacturing and sales of paints and fine chemicals.
Additionally, the Company corresponds to a specific listed company, etc., and of the minor criteria forsignificant matters with regard to the insider trading regulation, the numerical standards that are set bycomparison with the size of listed companies, shall be determined based on figures on a consolidated basis.
The positioning and relationship to segments of the business of the Company and the Company's relatedcompanies are as follows.
Consolidated subsidiaries

Entities accounted for using equity method- Japan -- Japan -NIPPON PAINT AUTOMOTIVE COATINGS CO., LTD.
NIPPON PAINT INDUSTRIAL COATINGS CO., LTD.
NIPPON PAINT CO., LTD.
NIPPON PAINT SURF CHEMICALS CO., LTD.
NIPPE TRADING CO., LTD.
NIPPON PAINT MARINE COATINGS CO., LTD.
And 7 other companies

1 company- Asia NOROO AUTOMOTIVE COATINGS CO., LTD. (South
Korea)NIPPON PAINT (INDIA) PRIVATE LIMITEDNIPSEA MANAGEMENT COMPANY PTE. LTD.
(Singapore)And 4 other companies- Asia NIPSEA CHEMICAL CO., LTD. (South Korea)
ASIA INDUSTRIES, LTD. (Taiwan)
NIPPON PAINT (THAILAND) COMPANY LIMITEDNIPPON PAINT (H.K.) COMPANY LIMITED (HongKong)
NIPPON PAINT (CHINA) COMPANY LIMITEDGUANGZHOU NIPPON PAINT CO., LTD. (China)
NIPPON PAINT (CHENGDU) CO., LTD. (China)
NIPPON PAINT (SINGAPORE) COMPANY PRIVATELIMITEDNIPPON PAINT (M) SDN. BHD. (Malaysia)
PAINT MARKETING CO. (M) SDN. BHD.
(Malaysia)
NIPPON PAINT PHILIPPINES, INC.
NIPSEA TECHNOLOGIES PTE. LTD. (Singapore)And 64 other companies- Other 1 company- North America NIPPON PAINT (USA) INC.
And 8 other companies- Other NIPPON PAINT (EUROPE) LTD. (U.K.)
NIPPON PAINT BOYA SANAYI VE TICARETLIMITED SIRKETI (Turkey)
And 8 other companies(Note) The Company does not have any consolidated subsidiaries available in domestic securities markets.

6(Japan)In this region, the Company is involved in the paint business in areas such as automotive paint, trade-use
paint, and industrial paint, as well as the fine chemical business.
Automotive paint is primarily manufactured by NIPPON PAINT AUTOMOTIVE COATINGS CO., LTD.
and two manufacturing subsidiaries under its umbrella and is sold by the company and authorized dealers.
Trade-use paint and automotive repair paint are primarily manufactured or procured and sold by NIPPONPAINT CO., LTD. and AS PAINT CO., LTD and is sold by the company and authorized dealers. Additionally,
heavy-duty and concrete anticorrosive paint is manufactured and sold by NIPPON PAINT ANTI-CORROSIVECOATINGS CO., LTD.
Industrial paint is mainly manufactured and procured by NIPPON PAINT INDUSTRIAL COATING CO.,LTD. and is sold by the company and authorized dealers.
Aside from the above-mentioned companies, there is also NIPPON PAINT MARINE COATINGS CO.,LTD., which manufactures and sells marine paint, NIPPE HOME PRODUCTS CO., LTD., which manufacturesand sells home-use paints, and NIPPE TRADING CO., LTD., a trading firm specializing in import and export,
along with 1 company that conducts sale and installation of facilities equipment affiliated with NIPPON PAINT
AUTOMOTIVE COATINGS CO., LTD. and 1 paint manufacturing subsidiary company affiliated with AS
PAINT CO., LTD.
In the fine chemicals business, surface treatment chemicals are mainly manufactured and procured by
NIPPON PAINT SURF CHEMICALS CO., LTD., and display-related materials, electronic materials, andparticulate materials, etc., are mainly manufactured and procured by NIPPON PAINT INDUSTRIAL COATINGS
CO., LTD. and sold by the company and authorized dealers.
As for entities accounted for using equity method, we have 1 company that designs and constructs roadtraffic safety facilities.
(Asia)In this region, for China, Hong Kong, Taiwan, South Korea, various Southeast Asian nations, and India, theCompany is involved in the paint business in areas such as automotive paint, trade-use paint, and industrial paint,
as well as the fine chemical business.
The Company directly holds 11 consolidated subsidiaries in addition to NIPPON PAINT (CHINA)COMPANY LIMITED, 2 entities accounted for using equity method in addition to NIPSEA MANAGEMENTCOMPANY PTE. LTD., 10 paint manufacturing and sales companies, 1 manufacturing and sales company forsurface treatment chemicals, 1 paint sales company, 1 coating sales and regional supervision company, 1 presiding
company, and 1 research and development company.
10 consolidated subsidiaries and 1 entity accounted for using equity method are affiliated with NIPPONPAINT AUTOMOTIVE COATINGS CO., LTD., and all conduct the manufacturing and sales of automotive paint.
7 consolidated subsidiaries are affiliated with NIPPON PAINT MARINE COATINGS CO., LTD., and all conduct
the manufacturing and sales of marine paint.
Additionally, there are 47 consolidated subsidiaries and 3 entities accounted for using equity method
affiliated with consolidated subsidiaries directly held by the Company.
(Americas)
In this region, the Company is primarily involved in the automotive paint business.
The company uses the directly-owned consolidated subsidiary NIPPON PAINT (USA) Inc., as a presiding
company, under which are 6 consolidated subsidiaries. Additionally, 2 consolidated subsidiaries are affiliated withNIPPON PAINT AUTOMOTIVE COATINGS Co., Ltd., and all are manufacturers and sellers of automotive paint.
(Other)In other regions, the Company is primarily involved in the automotive paint business.
The Company uses the directly-owned consolidated subsidiary NIPPON PAINT (EUROPE) LTD., as a7

presiding company in the United Kingdom, and 8 consolidated subsidiaries are affiliated with it that manufacturesand sells automotive paints. Additionally, there is 1 consolidated subsidiary that manufactures and sells paints.
Furthermore, 1 entity accounted for using equity method is affiliated with NIPPON PAINT MARINECOATINGS CO., LTD., and conducts the manufacturing and sales of marine paint.

3. Management Policy(1) Basic Corporate Management Policy
Since its establishment in 1881, the Company’s management principles state that “The Nippon Paint Group iscommitted to contributing to the welfare of society as a whole through its business activities, working together forthe mutual prosperity and benefit of everyone,” and upon these principles have put forth the following managerial
vision to share its values.
・ We will deliver satisfaction and deep impression to our customers by providing excellent specialty
chemicals products and services, centering coatings technology
・ We will grow globally based on respect for the cultures and values of entire world・ We will pursue corporate culture that accumulates people with challenging sprits and enthusiasm
Based on this fundamental approach, we recognize that the Group’s social responsibility is to create a
relationship of trust with all stakeholders and to contribute to society, and will strive to conduct continued andexpansive corporate activities with it in mind.
(2) Medium-term Corporate Management Strategy
The Group’s performance suffered due to effects of the global financial crisis that took place in 2008, and thus
began the “Survival Challenges” (hereinafter “SC”) stage I beginning in fiscal 2009 in an attempt to return toprofitability. Additionally, “SC Stage II,” which ended in fiscal 2014, was launched in fiscal 2012 in an attempt toestablish firm profitability. The company also transitioned to a holding company structure in October 2014, and in
December 2014 acquired equity of joint ventures (turning them into subsidiaries) in order to maintain its structure
and become a growing company. The company also transitioned to a holding company structure in October 2014,
and in December 2014 acquired equity of joint ventures (turning them into subsidiaries) in order to maintain its
structure and become a growing company.
In “SC Stage III” beginning in fiscal 2015, the Group has established as its goal to become a global paint majorthat “Has a leading position in the coatings and other related business in each global region, or a top 3 net sales
position in each business region.” In “SC Stage III”, as the first stage, the Company set targets for the fiscal year
ending December 31, 2017 as net sales of ¥700.0 billion, an operating profit margin of 15% or more, and ROE of
10% or more. Of these, although the operating profit margin target was achieved ahead of schedule in fiscal 2016,
continued measures will be undertaken toward continuous growth and effort will be made to improve capitalefficiency.
(i) Domestic Business
On October 1, 2014, the Company changed its trade name to Nippon Paint Holdings Co., Ltd., and theGroup transitioned to a holding company structure. In April 2015, the Company reorganized its domestic
business, newly reorganizing into various businesses that deal in automotive, trade-use, and industrial paintbusinesses as well as the surface treatment chemical business under placing them under the Company.
Beginning with these business firms, the Group has strengthened its control by managing as one all its
companies in Japan, Asia, Americas, and Europe, proposing business strategies, financial strategies, and humanresources strategies in order to do what is best for the group as a whole.
Each business firm has proposed their own growth measures appropriate for the business models of theirbusiness and region and are now attempting to implement them. Additionally, by gradually pursing delegationof authority from the Company and by accurately understanding and rapidly responding to consumer and8market needs that differ depending on business and region, the Company is attempting to increase its market
share in the domestic economy, in which it is difficult to hope for significant future market growth, as well as
to enter new fields. Additionally, proactive cooperation is being pursued with overseas Group companies, and arole is being played in order to lay the foundation needed to become a global paint major.
(ii) Oversea BusinessIn 1962, the Company began an Asian joint venture together with WUTHELAM HOLDINGS LTD., a
Singapore-based company, which has since then established a firm position as an Asian paint manufacturer that,among other achievements, holds the top market share for interior residential paint in China, Malaysia, andSingapore. In December 2014, moves were made to become the majority owner of this joint venture. The
Company will strengthen the business foundation in Asia through securing a commanding market share invarious business domains in which growth can be expected, in an attempt to further expand net sales and profit
with the China business as a core.
Additionally, in 2013, it acquired 39% of the stock of a German paint manufacturer, BOLLIG &KEMPER GMBH & CO. KG that has strong business ties with European automobile manufacturers, and by
making it a wholly-owned subsidiary in January 2016 to further deepening the Company’s relationship, theexpansion of use and delivery of the Group’s products by automotive manufacturers in Europe is being
accelerated. Additionally, in November 2015, the Company agreed with a local major coatings manufacturer inIndia, BERGER PAINTS INDIA LIMITED to expand its partnership, and by concentrating the automotive
coatings businesses of both companies in the joint venture, the Company seeks to expand business and improve
presence in the Indian market, where further growth is expected in the future. In December 2016, an agreement
was reached to make DUNN-EDWARDS CORPORATION, a coating manufacturer in the USA focused on the
manufacture and sale of professional-use construction coatings, a wholly-owned subsidiary (stock acquisitionscheduled for March 2017). The Company, which had previously centered on the automotive coatings business,
will aim for stable growth in the Americas by acquiring a platform for the construction coatings business.
In “SC Stage III,” the Company will significantly change its business structure to serve as the base for its
growth strategy, increase the composition of the coatings for construction materials, an area of high growth andprofitability, and aim for business expansion in the high-growth Asia region, while also expanding its entry into
untapped global markets for each business area.

4. Basic Approach to Selection of Accounting Standards
In order to increase international comparability of financial statements, increase quality and efficiency ofgroup management, and strengthen governance, preparations are being made with the goal of adopting IFRS
(International Financial Regulation Standards) by the time of the fiscal year 2018 annual securities report.

95. Consolidated Financial Statements(1) Consolidated Balance Sheets(Million yen)
As of March 31, 2016
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims - operating
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Trademark right
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

10

As of December 31, 2016

112,941
137,300
3,447
31,78330,3052,890
19,923
6,247
18,089(3,283)359,646

136,778
135,139
13,71350,78731,041
3,639
20,912
7,553
17,052(3,698)412,920

106,616(62,905)
43,711
95,942(72,111)23,83025,796(21,715)
4,081
20,754
2,101
(834)
1,266
10,655
104,300

106,220(62,527)
43,692
95,032(70,368)
24,66425,513(21,522)
3,991
20,500
2,150
(977)
1,173
13,646
107,669

183,750
49,57849,902283,231

166,362
44,27947,055
257,696

39,260
1,816
138
3,241
(176)
44,280431,812
791,459

45,418
1,210
154
3,096
(170)
49,709415,076
827,996(Million yen)
As of March 31, 2016
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
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
Deferred gains or losses on hedges
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

11

As of December 31, 2016

70,76912,187
19,584963
10,02060,043
173,568

70,732
21,51229,548947
7,866
57,325
187,932

1,684
945
23,836126328
16,343
6,877
50,141
223,7103,457
883
23,270142294
19,124
7,133
54,306242,238

78,86263,451
339,113(6,439)474,989

78,86263,451
361,074(6,444)496,9447,078(0)(9,533)(3,000)(5,455)39
98,176
567,748
791,459

10,120(28,512)(5,214)(23,606)85
112,334
585,757
827,996(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)

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 method
Gain on investment of securities
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Compensation expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on transfer of businessTotal extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

12

For the fiscal year ended
March 31, 2016
535,746
312,402223,343
151,991
71,352For the fiscal year ended
December 31, 2016
470,161
265,286
204,875
132,385
72,489

1,201
848
1,115
1,118
1,308
2,459
8,051

1,061
773
1,315
839
1,123
1,997
7,111

389
671
2,671
1,063
4,796
74,606

495
318
656
986
2,457
77,143

40
40
250
330

144
59
204

556
358
915
74,022
23,710(189)
23,52150,50020,48030,020325
22348
76,99921,041(533)
20,50856,491
21,702
34,788

Consolidated Statements of Comprehensive Income(Million yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

13

For the fiscal year ended
March 31, 2016
50,500For the fiscal year ended
December 31, 2016
56,491(5,113)(24)(19,832)
(805)

3,149
1
(25,407)(2,251)

(440)

(464)

(26,216)
24,284(24,973)
31,517

10,248

16,634

14,036

14,883

(3) Consolidated Statements of Changes in Equity
For the Fiscal Year Ended March 31, 2016 (From April 1, 2015 to March 31, 2016)(Million Yen)
Shareholder’s equity
Capitalstock
Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
periodCapitalsurplus78,862

78,862Retainedearnings

Total
shareholders'equityTreasuryshares78,338314,743(14,886)

3,008

63,451

317,752(6,432)465,513(11,877)(6,432)453,635(8,659)(8,659)30,02030,020
(7)

(7)

-

-

21,360(7)

21,35378,86263,451

339,113(6,439)474,989

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes of items otherthan shareholders' equity
Total changes of items
during period
Balance at end of current
periodValuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefitplans

12,21813

4,307(2,224)

Total
Subscription
accumulated
rights toothersharescomprehensive
income14,316-

Noncontrollinginterests

Total net
assets110,094

589,923(11,877)

12,21813

4,307(2,224)

14,316-

110,094

578,046(8,659)30,020(7)(5,140)(14)(13,841)(775)(19,772)

39(11,918)(31,651)(5,140)(14)(13,841)(775)(19,772)

39(11,918)(10,297)

7,078

(0)

(9,533)(3,000)(5,455)39

98,176

567,748

14

For the Fiscal Year Ended December 31, 2016 (From April 1, 2016 to December 31, 2016)(Million Yen)
Shareholder’s equity
Capitalstock
Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
periodCapitalsurplus78,862Retainedearnings

63,451

Treasuryshares339,113

Total
shareholders'equity(6,439)474,989(12,828)(12,828)

34,78834,788
(5)

(5)

-

-

21,960(5)

21,95578,86263,451

361,074(6,444)496,944

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes of items otherthan shareholders' equity
Total changes of items
during period
Balance at end of current
periodValuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit
plans

7,078

(0)

(9,533)(3,000)

Total
Subscription
accumulated
rights toothersharescomprehensive
income(5,455)39

Noncontrollinginterests

Total net
assets98,176

567,748(12,828)
34,788
(5)
3,042

0

(18,979)(2,214)(18,150)45

14,158(3,946)3,042

0(18,979)(2,214)(18,150)45

14,15818,008

10,120-(28,512)(5,214)(23,606)85

112,334

585,75715

(4) Consolidated Statements of Cash Flows(Million yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted for using equity method
Loss (gain) on sales and retirement of property, plant and equipment
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in net defined benefit liability
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Net decrease (increase) in short-term investment securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Payments for transfer of business
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayments of lease obligations
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Proceeds from share issuance to non-controlling shareholders
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

16

For the fiscal year ended
March 31, 2016

For the fiscal year ended
December 31, 2016

74,022
16,182
10,351(2,050)389(1,115)516(8,613)(212)(8,894)(369)
7,240
87,4452,143(368)(28,264)
2,145
63,101

76,99913,545
9,347(1,835)495(1,315)
181(14,073)(4,967)
12,018(469)
8,933
98,8582,456(395)(27,609)
4,605
77,916

11,476(16,953)
1,784(1,599)76-(21,653)(15,623)
562
(772)
134
(3,096)(2,236)-2,145(5,308)(2,247)(42,697)

11,591941(4,308)(527)(7)(8,659)(23,721)(9)(24,699)(3,524)29,56978,702
108,271

11,649
2,993
(888)
(365)
(5)
(12,828)(10,844)
1,670
35(8,583)(391)
26,243
108,271
134,515

(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
There is no relevant information.
(Basis of presentation of consolidated financial statements)(Change to consolidated fiscal year-end)
From the fiscal year ended December 31, 2016, the Company and consolidated subsidiaries for which thefiscal year-end was previously in March changed the fiscal year-end from March 31 to December 31, and at thesame time, the consolidated fiscal year-end was changed from March 31 to December 31. This change wasmade to promote global business operations and improve management transparency via timely and accurate
disclosure of management information, in addition to responding to requirements to unify the fiscal year-end asa consolidated company as stipulated by International Financial Reporting Standards (IFRS), for which futureapplication is under consideration.
In line with the above, consolidated subsidiaries for which the fiscal year-end was previously in Marchhave a period of consolidation of the nine months from April 1, 2016 to December 31, 2016, and consolidated
subsidiaries for which the fiscal year-end is in December have a period of consolidation of the twelve months
from January 1, 2016 to December 31, 2016, yielding an irregular fiscal year.
(Changes in accounting policies that are difficult to distinguish from changes in accounting estimates)(Change in depreciation method)
The Company and its Japanese subsidiaries had adopted the declining balance method for property, plantand equipment (excluding leased assets), except for buildings (excluding facilities attached to buildings)
acquired on or after April 1, 1998, which are depreciated using the straight-line method. The Company and its
Japanese subsidiaries changed the depreciation method to the straight-line method used by overseas
consolidated subsidiaries from the fiscal year ended December 31, 2016.
The Group developed a new medium-term management plan “Survival Challenges Stage III” during theprevious fiscal year in line with our recent active efforts on business expansion in overseas market (e.g.,acquisition of some joint venture companies in Asia at the end of 2014). In the process of its development, theCompany reviewed its depreciation method for non-current assets.
In order to capture domestic demand for coatings that was previously on an increasing trend, the Company
and domestic consolidated subsidiaries had been making capital investment in response to higher production
volume, but after the financial crisis, domestic demand for coatings has tended to be relatively stable while
maintaining a certain level of growth, and it is projected that existing domestic production facilities willcontinue to hold stable utilization. As a result, investment regarding new domestic production facilities has
been limited to highly versatile facilities that can be utilized with stability over the long term, and it wasdetermined that utilizing the method of depreciation with the straight-line method is the expense distribution
method that more appropriately reflects economic substance.
Due to this change, operating income, ordinary income, profit before income taxes for the fiscal year ended
December 31, 2016 increased by ¥453 million, ¥451 million, and ¥451 million, respectively.
17

(Changes in methods of presentation)(Consolidated Balance Sheets)“Electronically recorded monetary claims - operating,” which was included in “notes and accounts
receivable - trade” of “current assets" during the previous fiscal year, is presented separately from the fiscal
year ended December 31, 2016 due to increased significance in value. To reflect this change, the consolidated
financial statements for the previous fiscal year have been rearranged.
As a result, ¥140,748 million which was presented in “notes and accounts receivable - trade” on the
consolidated balance sheets during the previous fiscal year has been rearranged to “notes and accounts
receivable - trade” of ¥137,300 million and “electronically recorded monetary claims - operating” of ¥3,447
million.
(Consolidated Statements of Income)“Impairment loss,” which was separately presented in “extraordinary losses” during the previous fiscal year,
is no longer significant in value, and is included in “other” from the fiscal year ended December 31, 2016. The
amount of “impairment loss” presented in “extraordinary losses” on the consolidated statements of income
during the previous fiscal year is ¥323 million.
(Consolidated Statements of Cash Flows)“Loss (gain) on sales and valuation of investment securities,” which was separately presented in “cash flows
from investing activities” is no longer significant in value, and included in “other” from the fiscal year ended
December 31, 2016. Additionally, “Loss (gain) on sales and valuation of investment securities” which waspresented in “cash flows from investing activities” on the consolidated statement of cash flows during theprevious fiscal year is ¥(27) million.
(Additional information)(Application of Implementation Guidance on Recoverability of Deferred Tax Assets)
Implementation Guidance on Recoverability of Deferred Tax Assets (Accounting Standards Board of Japan
Guidance No. 26, March 28, 2016) has been applied from the fiscal year ended December 31, 2016.
(Business combination due to acquisition)
At a meeting of the Board of Directors held on December 22, 2016, a resolution was made to make DE
PARENT CORP. (hereinafter “DE PARENT”) and a business company under its control, DUNN-EDWARDSCORPORATION, wholly-owned subsidiaries by acquiring all stocks in DE PARENT (hereinafter the“Transaction”) through the method of merging a newly established special purpose company (hereinafter the“SPC”) with DE PARENT, with the SPC being established by NIPPON PAINT (USA) INC., a USA-based
consolidated subsidiary of the Company.
Additionally, regarding the Transaction, cash will be provided as consideration for the acquisition of DE
PARENT stock from existing DE PARENT shareholders via a cash exchange merger procedure between the
Company’s USA-based the SPC and DE PARENT. Upon completion, DE PARENT will absorb the SPC, and
DE PARENT, the surviving company, is scheduled to become a subsidiary of the Company.

18

(Segment information, etc.)
1. Summary of reportable segments
The reportable segments of the Company categorize the business composition of the Company for which
separate financial information is available and are subject to periodical evaluation by the Board of Directors inorder to make decisions regarding management resource allocation and performance assessment.
The Group’s primary business is the manufacture and sale of paint for automotive, general, industrial, andother uses, and fine chemicals. The Company and separate local companies are responsible for domestic
activities, and overseas, separate local companies are responsible for the Asia, Americas, and other regions.
Each company is an individual management unit, and concerning which items to carry, comprehensive
strategic proposals are made for each region to foster business growth.
As a result, the Group consists of segments divided by region with manufacture and sales structure as abase, and the three reportable segments are “Japan,” “Asia,” and “Americas.”2. Calculation methods for net sales, profit and loss, assets, liabilities, and other items by reportable segment
Accounting treatment methods for reportable segments are nearly the same with those described in “Basisof Presentation of Consolidated Financial Statements.”
Profits for reportable segments are figures based on operating profit. Inter-segment net sales or transfers
are based on actual market prices.
As stated in “(Changes in accounting policies that are difficult to distinguish from changes in accounting
estimates), the depreciation method has been changed from the fiscal year ended December 31, 2016 forproperty, plant and equipment at the Company and domestic consolidated subsidiaries.
Due to this change, compared to the previous method, segment income during the fiscal year ended
December 31, 2016 has increased by ¥453 million in the “Japan” segment.
3. Information on net sales, income (loss), assets, liabilities, and other figures by reportable segment
Previous fiscal year (April 1, 2015 - March 31, 2016)

Net sales
Net sales to outside customers
Inter-segment net sales or transfers
Total
Segment income (loss)
Segment assets
Other items
Depreciation
Increase in property, plant, andequipment and intangible assets(Million yen)Japan

Reportable segment
Asia
Americas

Subtotal

Other(Note)

174,280
49,747224,027
57,287513,033

317,396
5,153
322,549
37,748513,048

33,156242
33,3995,177
30,603524,833
55,143579,976
100,214
1,056,685

10,912
1,058
11,971(897)
11,725535,746
56,201
591,948
99,316
1,068,411

3,641

11,332

1,049

16,023

158

16,182

3,784

13,274

1,795

18,854

3,422

22,276Total

Note: “Other” represents business segments that are not included in the reportable segments, and contains businessactivities by overseas subsidiaries in Europe, etc.

19

Fiscal year ended December 31, 2016 (April 1, 2016 - December 31, 2016)

Net sales
Net sales to outside customers
Inter-segment net sales or transfers
Total
Segment income (loss)
Segment assets
Other items
Depreciation
Increase in property, plant, andequipment and intangible assets(Million yen)Japan

Reportable segment
Asia
Americas

Subtotal

Other(Note)

127,920
17,745
145,665
26,579506,152

297,5173,362
300,879
43,304
528,391

32,169191
32,3605,147
32,900457,606
21,298478,905
75,032
1,067,444

12,554896
13,451(365)
10,745

470,161
22,195492,356
74,666
1,078,189

2,206

10,235987

13,430115

13,545

4,541

13,373

2,562

20,478540

21,019Total

Note: “Other” represents business segments that are not included in the reportable segments, and contains businessactivities by overseas subsidiaries in Europe, etc.

20

4. Difference between total amount for reportable segment and the amount recorded in the consolidated financial
statements, and major details of such difference (matters related to adjustments of differences)(Million yen)
For the fiscal year ended
March 31, 2016

Net sales

For the fiscal year ended
December 31, 2016

Total reportable segment sales

579,976

478,905

Net sales from “Other”

11,971

13,451(56,201)(22,195)

535,746

470,161Inter-segment transaction eliminations and otheradjustments
Net sales recorded in the consolidated financial
statements

Note: “Inter-segment transaction eliminations and other adjustments” includes inter-segment dividend income.
(Million yen)
For the fiscal year ended
March 31, 2016

IncomeTotal reportable segment income
Segment income (loss) from “Other”
Inter-segment transaction eliminations and otheradjustments
Operating income recorded in the consolidated
financial statements

For the fiscal year ended
December 31, 2016

100,21475,032

(897)

(365)

(27,964)(2,176)

71,352

72,489Note: “Inter-segment transaction eliminations and other adjustments” includes inter-segment dividend income.
(Million yen)

Net assets

As of December 31, 2016

As of March 31, 2016

Total reportable segment assets

1,056,685

1,067,444

11,725

10,745(358,874)(351,667)

Total company assets (Note)

81,922

101,474

Net assets recorded in the consolidated financial
statements

791,459

827,996

Net assets from “Other”
Inter-segment transaction eliminations and otheradjustments

Note: Total company assets consist of surplus operating funds (cash and deposits), long-term investment funds(investment securities), and deferred tax assets.
(Million yen)

Other items

Total of reported
segments

Other, net

Consolidated financial
statements
total

Adjustment

Previous
Current
Previous
Current
Previous
Current
Previous
Current
consolidated consolidated consolidated consolidated consolidated consolidated consolidated consolidated
fiscal year fiscal year fiscal year fiscal year fiscal year fiscal year fiscal year fiscal year

Depreciation

16,023

13,430

158

115

-

-

16,182

13,545

Increase in property, plantand equipment andintangible assets

18,854

20,478

3,422

540

-

-

22,27621,01921

(Omissions)Regarding notes on lease transactions, transactions with related parties, tax effect accounting, financial
instruments, available-for-sale securities, derivative transactions, retirement benefits, stock options, etc.,
business combinations, asset retirement obligations, and rental and other real estate, these have been omitted asthey are not considered to have a high necessity for disclosure.
(Information on per share)

Net assets per share

Previous consolidated
fiscal year
(From April 1, 2015
To March 31, 2016)¥1,464.06

Current consolidated
fiscal year
(From April 1, 2016
To December 31, 2016)¥1,475.93¥93.61¥108.48

Basic earnings per share

Diluted earnings per share¥93.60¥108.47(Note) The basis of calculations of basic earnings per share and diluted earnings per share are as below.
Previous consolidated
fiscal year
(From April 1, 2015
To March 31, 2016)

Current consolidated
fiscal year
(From April 1, 2016
To December 31, 2016)

30,02034,788--30,02034,788

320,706

320,705

-

-

10

33

(10)

(33)

Basic earnings per share
Profit attributable to owners ofparent (million yen)Amount not attributable to commonshareholders (million yen)
Profit attributable to owners ofparent relating to common shares(million yen)
Average number of shares during theperiod (thousands of shares)
Diluted earnings per share
Profit attributable to owners ofparent (million yen)
Increase in the number of shares ofcommon stock (thousands of shares)(Subscription rights to shares
included in the above) (thousands ofshares)Descriptions of potential shares thatwere not included in the computationof diluted earnings per share becauseof their anti-dilutive effect-(Significant subsequent events)
There is no relevant information.

22

6. Other(1) State of Sales Performance

Paint business
Automotive paintTrade-use paintIndustrial paint
Other paintFine chemical business
Total

Previous consolidated
fiscal year
(From April 1, 2015
To March 31, 2016)
518,364
138,755
253,354
68,281
57,973
17,381535,746

Current consolidated
fiscal year
(From April 1, 2016
To December 31, 2016)
454,512129,007226,156
58,41640,932
15,649470,161(Million yen)Compared with previous
fiscal year(%)-

(Notes) 1: Amounts do not include consumption tax, etc.
2: Due to a change in the fiscal year, the consolidated fiscal year under review is the nine months startingon April 1, 2016 and ending on December 31, 2016. As a result, changes from the previous
corresponding period have not been provided.

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