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 Six Months Ended June 30, 2018
[Japanese GAAP]
August 8, 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: August 10, 2018
Scheduled date of commencing dividend payments: September 6, 2018
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 Six Months Ended June 30, 2018 (January 1, 2018 to June 30,
2018)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Six months ended
Million yen%
Million yen%
Million yen%
Million yen%
June 30, 2018
310,996
6.6
34,597(2.5)
38,151
4.4
18,357
18.9
June 30, 2017291,748
35,49336,557
15,445
Note: Comprehensive income: Six months ended June 30, 2018: ¥8,770 million [(39.0) %]Six months ended June 30, 2017: ¥14,383 million [ - %]Basic earnings per
share

Six months ended
June 30, 2018
June 30, 2017

Diluted earnings per
share

Yen

Yen

57.24
48.16

57.23
48.15

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 period for the six months ended June 30, 2017 (January 1, 2017 to June 30, 2017) andfor the corresponding period for the six months ended September 30, 2016 (April 1, 2016 to September 30,2016) differ from each other.
(2) Consolidated Financial Position
Total assets
Million yen

Net assets

Equity ratio

Million yen%

As of June 30, 2018
902,556
618,444
As of December 31, 2017
920,591
629,408
Reference: Equity: As of June 30, 2018: ¥501,114 million
As of December 31, 2017: ¥504,336 million

55.5
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
22.00
December 31, 2018
Fiscal year ending
December 31, 2018
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.)
Operating income

Ordinary income

Profit attributableto owners of parent

Million yen

Million yen%

Million yen%

Yen

Full year
650,000
7.4
78,0004.1
82,0006.7
Note: Revision to the financial results forecast announced most recently: No

35,500(4.4)

110.69Net sales
Million yen%%

Basic earnings
per share

* 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):
June 30, 2018: 325,402,443 shares
December 31, 2017: 325,402,443 shares2) Total number of treasury shares at the end of the period:
June 30, 2018: 4,701,116 shares
December 31, 2017: 4,700,301 shares
3) Average number of shares during the period:
Six months ended June 30, 2018: 320,701,749 shares
Six months ended June 30, 2017: 320,703,476 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) Quarterly Consolidated Statements of Cash Flows ...................................................................................... 9(4) Notes to Quarterly Consolidated Financial Statements .............................................................................. 10(Notes on going concern assumption) ................................................................................................. 10(Notes in the case of significant changes in shareholders’ equity) ........................................................ 10(Accounting treatments adopted specially for the preparation of quarterly consolidated financial
statements)............................................................................................................................................ 10(Segment information, etc.) ................................................................................................................... 111

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
The period of consolidation for the six months ended June 30, 2018 is the six months from January to June
2018.
During the six months ended June 30, 2018, consolidated net sales of the Company and its groupcompanies (collectively, the “Group”) increased by 6.6% from the corresponding period of the previous year(the “previous year”), to ¥310,996 million. Consolidated operating income decreased by 2.5% from the previous
year, to ¥34,597 million due to the effects of an increase in raw material prices, and consolidated ordinary
income increased by 4.4% from the previous year, to ¥38,151 million mainly due to the subsidy income related
to the removal of a factories resulting from an environmental regulation in China. Profit attributable to ownersof parent increased by 18.9% from the previous year, to ¥18,357 million due to the extraordinary profit posted
for the sale 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 at the same level as 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 forindustrial 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, net sales were slightly higher than the previous year due to factors such as efforts to expand ourmarket share in the retail sector by introducing new products. As for other coatings, net sales were lower thanthe previous year due to factors such as the sluggish market conditions of marine coatings and the recording ofsales of a large-scale coating facility construction in the previous year.
As a result of these factors, consolidated net sales for the Japan segment decreased by 0.5% from theprevious year, to ¥86,657 million. Consolidated operating income decreased by 0.8% from the previous year, to¥27,601 million due to the effects of an increase in raw material prices and an increase in selling, general andadministrative expenses. ¥13,523 million of dividend income from overseas group companies (¥12,353 million
in the previous year) is included in consolidated operating income. All of this dividend income is eliminated as
an internal 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 factors such as an increase in the number of automobiles manufactured from the previous year, theexpansion of business to Chinese manufacturers and the expansion of sales of coatings for automotive parts. As
for trade-use paints, net sales were higher than the previous year, due to factors such as an increase of sales tomajor customers in sectors focusing on decorative paints, despite of the sluggish real estate market conditions
in sectors focusing on interior residential paints. In industrial coatings, net sales were lower than the previous
year, owing primarily to weak shipments of coatings for construction materials affected by 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 and India by Japanese manufacturers.
Additionally, net sales of trade-use paints were strong in Singapore, Vietnam and Malaysia.
As a result of these factors, consolidated net sales for the Asia segment increased by 8.1% from theprevious year, to ¥179,299 million. Consolidated operating income increased by 4.3% from the previous year,to ¥18,331 million due to factors such as the control of selling, general and administrative expenses, despite theeffects of an increase in raw material prices.
2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, from the previous year, despite the efforts to expand sales of coatings for automotive parts. In
trade-use paints, consolidated net sales increased year on year with the results of DUNN-EDWARDSCORPORATION, a decorative paints manufacturer, which was consolidated in March 2017, contributing to thesales for the full six months compared to four months in the previous year.
As a result of these factors, consolidated net sales for the Americas segment increased by 19.3% from theprevious year, to ¥37,733 million. Consolidated operating income was ¥2,086 million, an increase of 8.8%
from the previous year. Consolidated operating income of the six months ended June 30, 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 in
the EU region increased from the previous year, consolidated net sales were ¥7,307 million, an increase of
1.8% from the previous year mainly due to favorable shipments to French manufacturers and consolidated
operating income was ¥21 million, a decrease of 95.4% from the previous year mainly due to the effects of anincrease in raw material prices and the aggravating effects of product mix.

3

(2) Explanation of Financial Position
Total assets at the end of the second quarter of the fiscal year under review decreased by ¥18,034 million
from the end of the previous fiscal year to ¥902,556 million. Current assets increased by ¥5,262 million, mainly
due to a decrease in cash and deposits and securities, offset by an increase in accounts receivable - trade.
Additionally, non-current assets decreased by ¥23,297 million from the end of the previous fiscal year,
primarily caused by factors such as decreases in trademark rights and goodwill in line with their amortization
and a decrease in investment securities resulting from the fall in share prices.
Liabilities decreased by ¥7,070 million from the end of the previous year to ¥284,112 million. The
decrease was mainly attributable to a decrease in loans payable and deferred tax liabilities.
Net assets decreased by ¥10,964 million from the end of the previous fiscal year to ¥618,444 million. Thiswas mainly attributable to an increase in retained earnings due to the recording of profit attributable to ownersof parent, offset by decreases in valuation difference on available-for-sale securities, foreign currencytranslation adjustment and non-controlling interests.
As a result, equity ratio increased from 54.8% at the end of the previous fiscal year to 55.5%.
(Status of Cash Flows)
During the six months ended June 30, 2018, operating activities resulted in an inflow of ¥23,321 million,
investing activities resulted in an outflow of ¥8,309 million, and financing activities resulted in an outflow of¥15,702 million, resulting in cash and cash equivalents (hereinafter “cash”) of ¥97,952 million, a decrease of¥2,608 million compared to the end of the previous fiscal year.
(Cash flows from operating activities)
Net cash provided by operating activities for the six months ended June 30, 2018 was increased by ¥2,801
million from the previous year, to ¥23,321 million. Primary factors include a recording of a cash inflow(excluding increases and decreases in operating capital) of ¥49,025 million, reflecting mainly non-cash
expenses such as depreciation and amortization nonprofit before income taxes, a decrease in cash of ¥19,384
million owing to an increase in operating capital due to a significant increase in notes and accounts receivable –trade as of the end of the six months ended June 30, 2018, the result of early collections of notes and accounts
receivable - trade as of the end of the fiscal year ended December 31, 2017 at a consolidated subsidiary in
China, and income taxes paid of ¥6,319 million.
(Cash flows from investing activities)
Net cash used in investing activities for the six months ended June 30, 2018 was decreased by ¥75,361
million from the previous year, to ¥8,309 million. This was mainly attributable to an inflow of ¥2,056 million
due to a decrease in securities, and an outflow of ¥9,985 million due to purchase of property, plant andequipment.
(Cash flows from financing activities)
Net cash used in financing activities for the six months ended June 30, 2018 was ¥15,702 million, inflowof ¥17,659 million in the previous year. Primary factors include an outflow of ¥7,567 million due torepayments of loans payable such as funds procured for the acquisition of DUNN-EDWARDSCORPORATION and cash dividends paid of ¥7,588 million.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information
There are no revisions from consolidated financial results forecast 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 June 30, 2018

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

99,900170,117
15,531
34,32966,192
7,438
19,291(5,639)407,163

64,02978,850142,880

63,66076,890140,550

197,051
61,87054,295313,216

185,237
58,92651,800295,964

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

54,143
1,106
3,673
(44)
58,878495,393
902,556

(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 June 30, 2018

79,94022,38025,354
6,046
2,340
63,150199,21280,42821,175
26,834
8,947
322
69,743
207,451

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

21,65630,908191
298
16,7486,857
76,660284,11278,862
63,262
385,369(6,454)
521,040

78,862
63,228396,671(6,458)532,305

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

10,289(38,577)(2,903)(31,190)154
117,175
618,444902,556

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Six Months Ended June 30, 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
Other
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

For the six months ended
June 30, 2017291,748
172,155
119,592
84,09935,493

7(Million yen)
For the six months ended
June 30, 2018
310,996
188,614122,382
87,784
34,597

639
536

525
598

421

583

438
1,507
3,542

2,853
1,164
5,725

547
1,464
467
2,478
36,557

579
717
873
2,170
38,151

24
4
29

2,183
100
2,283

250
5
256
36,33011,732
24,597
9,152
15,445423－
423
40,011
12,173
27,837
9,479
18,357

Consolidated Statements of Comprehensive Income
Six Months Ended June 30, 2018
(Million yen)

ProfitOther comprehensive income

For the six months ended
June 30, 2017
24,597For the six months ended
June 30, 201827,837(1,833)(9,860)1,403(1,834)(16,852)
486

76

(867)

(10,214)
14,383(19,067)
8,770

7,278
7,104

3,870
4,900

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) Quarterly Consolidated Statements of Cash Flows
For the six months ended
June 30, 2017
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, plantand 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
Purchase of shares of subsidiaries resulting in change inscope 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
Cash dividends paid
Dividends paid to non-controlling interests
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

9(Million yen)
For the six months ended
June 30, 201836,3308,502
5,618(1,176)547

40,011
9,408
5,946(1,123)
579

(421)

(583)

226

(1,759)(21,220)(19,985)

(911)

367

1,086

233

859
(2,201)
27,2391,671(436)(12,076)
4,122
20,52095(4,435)28,755
1,519(632)(6,589)269
23,321

11,794

2,056(9,944)555(6,294)(9,985)2,413(42)(79,606)－(174)(83,671)(2,751)(8,309)(6,030)32,000(872)(269)(6,414)(663)(91)
17,659(857)
327(7,037)(312)(7,055)(533)(234)(15,702)(2,256)(1,917)(47,748)
134,515
86,767(2,608)100,560
97,952

(4) 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 second quarter of the fiscal year under review.

10

(Segment information, etc.)[Segment information]
I. For the six months ended June 30, 2017
1. Information on net sales and income (loss) by reportable segment(Million yen)
Reportable segment
Japan

Asia

Net sales to outside customers

87,134

Inter-segment net sales or transfers

Other(Note)

Total

Americas

Subtotal

165,804

31,633

284,571

7,176

291,748

23,071

2,347

80

25,499452

25,951

110,205

168,151

31,714

310,070

7,628

317,699

27,82817,5701,917

47,316458

47,775Net sales

Total
Segment income

Note: “Other” represents business segments that are not included in the reportable segments, and contains businessactivities 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

47,316

Net income from “Other”

458(12,282)

Inter-segment transaction eliminations and other adjustments

Operating income recorded in the quarterly consolidated
35,493statements of income
Note: “Inter-segment transaction eliminations and other adjustments” includes inter-segment dividend income.
3. Information on products and services(Million yen)

Net sales to outside customers

Change from the previous year(%)

Amount282,401－

Automotive paint73,035－Trade-use paint145,508－

Industrial paint36,460－

Other paint27,396－

Fine chemical business

9,347

－

Total

291,748－

Paint businessNotes: 1. Consumption taxes are not included in these amounts.

11

2. During the previous fiscal year, the fiscal year-end was changed from March 31 to December 31. As aresult, the period for comparison for the six months ended June 30, 2018 differs, and change from theprevious year is not provided.
II. For the six months ended on June 30, 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

86,657179,299

37,733

303,689

7,307

310,996

Inter-segment net sales or transfers

24,435

1,784

106

26,326382

26,708111,092

181,083

37,839330,015

7,689

337,704

27,601

18,331

2,086

48,01921

48,040Total

Net sales

Total
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

48,019Net income from “Other”

21

Inter-segment transaction eliminations and other adjustments(13,443)

Operating income recorded in the quarterly consolidated
34,597statements of income
Note: “Inter-segment transaction eliminations and other adjustments” includes inter-segment dividend income.
3. Information on products and services(Million yen)

Net sales to outside customers

Change from the previous fiscal
year (%)

AmountPaint business

301,276

6.7

Automotive paint81,56011.7

Trade-use paint159,461

9.6

Industrial paint33,721(7.5)

Other paint26,532(3.2)

Fine chemical business

9,719

4.0

Total

310,996

6.6

Note: Consumption taxes are not included in these amounts.
12