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 thatthe 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 March 31, 2016
[Japanese GAAP]May 12, 2016
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 Corporate Communication
Phone: +81-6-6455-9140
Scheduled date of annual general meeting of shareholders: June 28, 2016
Scheduled date of commencing dividend payments: June 29, 2016
Scheduled date of filing the securities report: June 29, 2016
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 March 31, 2016 (April 1, 2015 to March 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%
March 31, 2016
535,746
105.6
71,352111.4
74,60651.4
30,020 (83.5)
March 31, 2015
260,5900.0
33,751
1.1
49,271
5.2
181,477464.4
Note: Comprehensive income: Fiscal year ended March 31, 2016: ¥24,284 million [(87.5) %]Fiscal year ended March 31, 2015: ¥193,771 million [279.7%]
Total assets
Net sales
Basic earnings per Diluted earnings
Rate of return on
Ordinary income
Operatingshare
per share
equityratio
income ratio
Fiscal year ended
Yen
Yen
%
%
%
6.3
9.3
13.3
March 31, 2016
93.61
93.60
March 31, 2015
650.04
53.8
8.7
13.0
Reference: Equity in earnings (losses) of affiliates:
Fiscal year ended March 31, 2016: ¥1,115 million
Fiscal year ended March 31, 2015: ¥14,103 million(2) Consolidated Financial Position
Total assets
Million yen

Net assets

Net assets per
share

Equity ratio

Million yen%

Yen

As of March 31, 2016
791,459
567,748
As of March 31, 2015
810,727
589,923
Reference: Equity: As of March 31, 2016: ¥469,533 million
As of March 31, 2015: ¥479,829 million(3) Consolidated Cash Flows

59.3
59.2

1,464.06
1,496.16

Fiscal year ended
March 31, 2016
March 31, 2015

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at endof period

Million yen

Million yen

Million yen

Million yen

63,101
34,419(5,308)(86,966)(24,699)
85,298108,271
78,702

2. Dividends
Annual dividends

Total
dividends
paid(Total)Dividend
payoutratio(Consolidated)

Dividend/Net
assets(Consolidated)

1stquarter-end

2ndquarter-end

3rdquarter-end

Year-end

Yen

Yen

Yen

Yen

Yen

Million
yen

%

%

-

10.00

-

12.00

22.00

6,455

3.4

2.0

-

15.00

-

20.00

35.00

11,224

37.4

2.4

-

20.00

-

20.00

40.00

Fiscal year ended
March 31, 2015
Fiscal year ended
March 31, 2016
Fiscal year ending
December 31,
2016(Forecast)

Total

37.7

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2016 (April 1, 2016 to
December 31, 2016)(% indicates changes from the previous corresponding period.)
Profit attributable
Basic earnings
Net sales
Operating income
Ordinary income
to owners ofper share
parentFirst half
Full year

Million yen%

Million yen%

Million yen%

Million yen%

Yen

260,000
500,000(1.2)-

34,00071,000

6.1-

36,00074,0006.9-

17,00034,000

28.0
-

53.01
106.02The Company plans to change its fiscal year-end from March 31 to December 31 from the fiscal year ending
December 31, 2016, subject to the approval of Partial Amendments of the Articles of Incorporation at the 191st
Annual General Meeting of Shareholders scheduled to be 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 ending
December 31, 2016, which will be the transition period, will be the nine months starting on April 1, 2016 andending on December 31, 2016, assuming the change of fiscal year end. For subsidiaries with fiscal year ending
December 31, the consolidation period is the 12 months starting on January 1, 2016 and ending on December 31,
2016, as before.
As a result, full-year changes from the previous corresponding period have not been provided.

* Notes:(1) Changes in significant subsidiaries during the period ended March 31, 2016 (changes in specified subsidiaries
resulting in changes in scope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective 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):
March 31, 2016: 325,402,443 shares
March 31, 2015: 325,402,443 shares2) Total number of treasury shares at the end of the period:
March 31, 2016: 4,696,460 shares
March 31, 2015: 4,694,319 shares
3) Average number of shares during the period:
Fiscal year ended March 31, 2016: 320,706,841 sharesFiscal year ended March 31, 2015: 279,177,386 shares(Reference) Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2016 (April 1, 2015 to March 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%
March 31, 2016
47,359 (35.6)
39,503
166.7
39,62482.1
36,995
104.2
March 31, 2015
73,561 (43.5)
14,812(9.7)
21,759 (23.5)
18,113 (14.6)
Basic earnings
Diluted earnings
per shareper share
Fiscal year ended
Yen
Yen
March 31, 2016
115.36115.35
March 31, 2015
64.88
(2) Non-consolidated Financial Position
Net assets per
Total assets
Net assets
Equity ratio
shareMillion yen%

Yen

As of March 31, 2016
314,695
287,264
As of March 31, 2015
296,089
264,074
Reference: Equity: As of March 31, 2016: ¥287,225 million
As of March 31, 2015: ¥264,074 million

Million yen

91.3
89.2

895.60823.41* Presentation regarding the implementation status of the audit procedures
These consolidated financial results are outside the scope of audit procedures under the Financial Instruments andExchange 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 Regarding 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 March 31,
2016 and Next Fiscal Year ............................................................................................................................ 6
2. Business Combination Status ........................................................................................................................ ...7
3. Management Policy ....................................................................................................................................... ...9
(1) Basic Corporate Management Policy ........................................................................................................... 9(2) Medium-term Corporate Management Strategy........................................................................................... 9
4. Basic Approach to Selection of Accounting Standards ............................................................................... ...10
5. Consolidated Financial Statements ............................................................................................................... 11(1) Consolidated Balance Sheets ................................................................................................................... 11(2) Consolidated Statements of Income and Comprehensive Income ........................................................... 13(3) Consolidated Statements of Changes in Equity ........................................................................................ 15(4) Consolidated Statements of Cash Flows .................................................................................................. 17(5) Notes to Consolidated Financial Statements ............................................................................................ 18(Notes on going concern assumption) ................................................................................................. 18(Basis of presentation of consolidated financial statements)................................................................. 18(Changes in accounting policies)........................................................................................................... 18(Unapplied accounting standards, etc.) ................................................................................................. 19(Changes in methods of presentation) ................................................................................................... 19(Additional information) ....................................................................................................................... 20(Segment information, etc.) ................................................................................................................. 21(Information on per share)..................................................................................................................... 25(Significant subsequent events)............................................................................................................. 25
6. Other ............................................................................................................................................................. 26(1) State of Sales Performance......................................................................................................................... 26

1

1. Analysis Regarding Operating Results and Financial Position(1) Analysis of Operating Results
During the fiscal year ended March 31, 2016, consolidated net sales of NIPPON PAINT HOLDINGS CO.,LTD. (the “Company”) and its group companies (collectively, the “Group”) increased by 105.6% from thecorresponding period of the previous year (the “previous year”), to ¥ 535,746 million, due to the acquisition ofequity of joint venture companies in the Asian region (making them into subsidiaries) in the previous year.
Consolidated ordinary income increased by 111.4% from the previous year, to ¥71,352 million, as a result of
the effects of acquiring equity in the joint venture companies and the recording of related amortization expenses
for goodwill and intangible assets in selling and administrative expenses. Consolidated ordinary income
increased by 51.4% from the previous year, to ¥74,606 million. Profit attributable to owners of parent
decreased by 83.5% from the previous year, to ¥30,020 million partly due to posting of gain on step
acquisitions of ¥148.8 billion as extraordinary income during the previous year, following the conversion of theaforementioned companies into subsidiaries.
Results by business segment are as follows. Overseas group companies, with the exception of somecompanies, adopt a December fiscal year-end, and a corresponding period for the period ended March 31, 2016
is from January to December 2015.
Categories of reportable segments have been changed starting from the current fiscal year. Details of thischange are as stated in “5. Consolidated Financial Statements (5) Notes to Consolidated Financial Statements(Segment information, etc.) 2. Changes to reportable segments” .
Japan
In this region, as a result of efforts to expand market share amid the decreasing number of automobiles
manufactured, net sales of automotive coatings remained at the same level as the previous year. As forindustrial coatings, in line with a decline in market conditions, decreased sales of coatings for construction
materials and construction machinery and other factors led to lower net sales compared to the previous year.
With respect to trade-use paints, while performance has been weak in the overall market, owing to efforts insales promotion activities including new products, net sales increased compared to the previous year.
As a result of these factors, consolidated net sales for the Japan segment decreased by 6.9% from theprevious year, to ¥174,280 million. Consolidated operating income increased by 67.3% from the previous year,
to ¥57,287 million due to the transition to a holding company that occurred on October 1, 2014 leading to therecording of dividend income from overseas group companies (recording ¥28,127 million for the fiscal year
ended March 31, 2016), and continued activities to reduce costs. All of this dividend income is eliminated as aninternal transaction under “Inter-segment transaction eliminations and other adjustments.”
Asia
In this region, net sales and operating income increased substantially due to the acquisition of equity ofjoint venture companies in the Asian region (making them into subsidiaries) during the previous year.
Particularly, in China, the core region of the Asia segment, net sales were robust for trade-use paints such as
paints for housing interiors. However, due to making the companies into subsidiaries, share of profit of entities
accounted for using equity method decreased.
As a result of these factors, consolidated net sales for the Asia segment increased by 623.5% from theprevious year, to ¥317,396 million, consolidated operating income increased by 733.3% from the previous year,to ¥37,748 million, and share of profit of entities accounted for using equity method decreased by 91.5% fromthe previous year, to ¥1,203 million.

2

Americas
In this region, net sales increased due to an increase in the number of automobiles manufactured.
Furthermore, in addition to reduced expenses for the import of raw materials from Japan due to a strong dollar(a weaker yen), continued activities to reduce costs led to a significant improvement in profitability.
As a result, consolidated net sales for the Americas segment increased by 28.5% from the previous year, to¥33,156 million, and consolidated operating income increased by 92.8% from the previous year, to ¥5,177
million.
Other
Consolidated net sales for this geographic segment increased by 193.3% from the previous year, to¥10,912 million due to the consolidation of a German paint manufacturer, and consolidated operating income orloss amounted to a loss of ¥897 million (income of ¥69 million in the previous year) partly due to an increase inamortization of goodwill.
Outlook for Next Fiscal Year
Since the Company plans to change its fiscal year-end in the next period (period ending December 31,2016), consolidated performance outlook for the next period is for the nine-month period from April to
December for the Company and subsidiaries with fiscal year ending March 31 and is for twelve-month period
from January to December for subsidiaries with fiscal year ending December 31.
Domestically, although a moderate economic recovery is expected, it is forecast that the future will remain
uncertain due to the increase in the consumption tax scheduled for the fiscal year ending December 31, 2017.
Under such circumstances, for automotive coatings, amid forecasts for automotive production to increaseslightly, the Company will aim to increase market share and enter new markets for parts manufacturers. We willcontinue efforts to increase our trade-use paints market share in the next fiscal year by moving forward with theintroduction of new products to the market that match customer needs, and aim to establish a reputation in
important markets through measures such as introducing new products to the market for residential materials
coatings in industrial coatings.
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 will work to share business strategies with the NIPSEA Group (*), a joint venturein 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, which is centered on automotive coatings, it is forecast that automotive unit production
will continue to trend favorably, and the Company will aim to maintain and expand net sales and profits. In
other regions, it is forecast that automotive unit production will trend strongly in Europe, and through theGerman paint manufacturer newly consolidated in April 2015, the Company will aim to expand market shareand improve profitability.
As a result of the above factors, our outlook for next fiscal year’s consolidated business performance is¥500.0 billion in net sales, ¥71.0 billion in operating income, ¥74.0 billion in ordinary income, and ¥34.0
billion in profit attributable to owners of parent.
(*) Asian joint venture together with WUTHELAM HOLDINGS LTD., a collaborative partner based in
Singapore3

Consolidated performance outlook for the fiscal year ending December 31, 2016
(Million yen)
For the fiscal year ending
December 31,
2016(Forecast)(Nine months)< At constant scope andexchange rates>(April 1, 2016
to December 31, 2016)

For the fiscal year ended
March 31, 2016 (Actual)(April 1, 2015
to March 31, 2016)

Net sales

500,000

550,000

535,746

2.7

Operating income

71,00077,00071,352

7.9

Ordinary income

74,00080,00074,606

7.2

Profit attributable to ownersof parent

34,00036,00030,02019.9

Rate ofchange(%)(Note) The Company plans to change the fiscal year end to December 31. For the period ending on December 31, 2016,
the transition period, the consolidation period for the Company and its subsidiaries with fiscal year ending March 31
is the nine months between April and December and for subsidiaries with fiscal year ending December 31, theconsolidation period is the 12 months starting on January 1, 2016 and ending on December 31, 2016, as before.

(2) Analysis of Financial Position
1) Status of Assets, Liabilities, and Net Assets
Total assets decreased by ¥19.27 billion from the end of the previous fiscal year to ¥791,459 million. Of
these, current assets increased by ¥17.91 billion from the end of the previous fiscal year, mainly due to anincrease in cash and deposits, offset in part by a decrease in securities. Non-current assets decreased by ¥37.18
billion from the end of the previous fiscal year, primarily caused by factors such as the application of the
Accounting Standard for Business Combinations etc. which led to a decrease in goodwill, and a decrease ininvestment securities, despite an increase in property, plant and equipment.
Liabilities increased by ¥2.91 billion from the end of the previous fiscal year to ¥223,710 million. The
increase was mainly attributable to an increase in interest-bearing debt, despite a decreased in notes andaccounts payable - trade.
Net assets including non-controlling interests decreased by ¥22.18 billion from the end of the previous
fiscal year to ¥567,748 million. This was mainly attributable to a decrease in foreign currency translation
adjustment, as well as a decrease in capital surplus due to the application of the Accounting Standard forBusiness Combinations, etc., despite an increase in retained earnings stemming from the recording of profit
attributable to owners of parent.
As a result, equity ratio rose from 59.2% at the end of the previous fiscal year to 59.3%.

42) Status of Cash Flows
Business operations for the fiscal year ended March 31, 2016 resulted in an inflow of ¥63,101 million,
investing activities resulted in an outflow of ¥5,308 million, and financing activities resulted in an outflow of¥24,699 million, resulting in cash and cash equivalents (hereinafter “cash”) of ¥108,271 million, an increase of¥29.57 billion compared to the end of the previous consolidated fiscal year.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥63,101 million (an increase of ¥28.68 billion compared tothe previous fiscal year). Primary factors include an inflow of ¥91,366 million resulting from depreciation andamortization expenses applied to profit before income taxes, offset in part by income taxes paid of ¥28,264
million.
(Cash flows from investing activities)
Net cash used in investing activities was ¥5,308 million (a decrease of ¥81.66 billion compared withprevious fiscal year). This was mainly attributable to purchase of property, plant and equipment of ¥16,953
million and acquisition of shares of subsidiaries of ¥2,236 million, despite an inflow of ¥11,476 million as aresult of the redemption of securities.
(Cash flows from financing activities)
Net cash used in financing activities was ¥24,699 million (inflow of ¥85,298 million in the previous year).
Primary factors include cash inflows of ¥8,224 million as a result of an increase in loans payable, offset by cash
dividends paid of ¥32,380 million.

5

(Reference) Change in cash flow-related indexes
187th Period
Year Ended
March 31, 2013

188th Period
Year Ended
March 31, 2014

189th Period
Year Ended
March 31, 2015

190th Period
Year Ended
March 31, 2016

Equity ratio (%)

56.0

60.0

59.2

59.3

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

86.2

125.8

174.1

101.2

0.7

0.5

0.4

0.4

Interest coverage ratio (multiplier)

80.1

88.8

181.1

171.1

*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 March 31, 2016 andNext 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, business results for the fiscal
year ended March 31, 2016 set new records for net sales, operating income, and ordinary income, and as thefull-year business results forecasts announced on November 6, 2015 were achieved, based on the above
dividend policy, the Company plans on a year-end dividend of ¥20 per share, an increase 5yen, making the fullyear dividend ¥35 per share. As a result, total dividends including interim dividends will be ¥35 per share, andthe consolidated dividend payout ratio will be 37.4% (IFRS base 27.8%).
Additionally, we plan a full-year dividend of ¥40 per share for the next fiscal year.

62. Business Combination Status
The Group consists of the Company, 120 subsidiaries, 7 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.
Categories of reportable segments have been changed starting from the fiscal year ended March 31, 2016.
Details of this change are as stated in “5. Consolidated Financial Statements (5) Notes to Consolidated
Financial Statements (Segment information, etc.) 2. Changes to reportable segments” .
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 61 other companies- Americas 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.

7(Japan)In this region, the Company are 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 manufactured by NIPPON PAINT AUTOMOTIVE COATINGS CO., LTD. and issold 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. Additionally, heavy-duty and concrete anticorrosive paint is
manufactured and sold by NIPPON PAINT ANTI-CORROSIVE COATINGS CO., LTD.
Industrial paint is manufactured and procured by NIPPON PAINT INDUSTRIAL COATING CO., LTD. andis 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 3 paint manufacturing subsidiary companies and 1 company that conducts sale and installation offacilities equipment affiliated with NIPPON PAINT AUTOMOTIVE COATINGS CO., LTD. and AS PAINT
CO., LTD.
In the fine chemicals business, surface treatment chemicals are manufactured and procured by NIPPONPAINT SURF CHEMICALS CO., LTD., and display-related materials, electronic materials, and particulatematerials, etc., are manufactured and procured by NIPPON PAINT INDUSTRIAL COATINGS CO., LTD. andsold 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 South Korea, Taiwan, China, Hong Kong, 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 including NIPPON PAINT (CHINA) COMPANY
LIMITED, 2 entities accounted for using equity method including NIPSEA MANAGEMENT COMPANY PTE.
LTD., 10 paint manufacturing and sales companies, 1 fine chemical manufacturing and sales company, 2 paintsales companies, 1 presiding company, and 1 research and development company.
10 consolidated subsidiaries, 1 entity accounted for using equity method, 10 manufacturing and sales
companies for plastic paints, and 1 sales company are affiliated with NIPPON PAINT AUTOMOTIVECOATINGS CO., LTD.
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 44 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, 3 paint manufacturing and sales companies, and 1 paintsales company affiliated with them.
Additionally, 2 consolidated subsidiaries are affiliated with NIPPON PAINT AUTOMOTIVE COATINGS
CO., LTD., a manufacturer and seller of plastic paints.
(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 a8

presiding company in the United Kingdom, and 8 consolidated subsidiaries are affiliated with it that manufacturesand sells paints.
Additionally, there are 1 consolidated subsidiary that manufactures and sells paints.

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 this fiscal year, 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.” As the first stage, the Company has set targets for the fiscal year ending
December 31, 2016 as net sales of ¥700.0 billion, an operating profit margin of 15% or more, and ROE of 10% or
more.
(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 andmarket 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 toenter 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.

9

(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 further expansion of net sales and profit invarious business domains, with the China business as a core.
Additionally, in 2013, it acquired 39% of the stock of a German paint manufacturer 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, the expansion of use and delivery of the Group’s
products by automotive manufacturers in Europe is being accelerated. Additionally, in November 2015, theCompany agreed with a local major coatings manufacturer in India to expand its partnership, and byconcentrating the automotive coatings businesses of both companies in the joint venture, the Company seeks toexpand business and improve presence in the Indian market, where further growth is expected in the future.
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 expand entrance 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.

10

5. Consolidated Financial Statements(1) Consolidated Balance Sheets(Million yen)
As of March 31, 2015
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
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

11

As of March 31, 2016

89,007
136,694
43,752
29,6003,476
20,201
7,218
14,962(3,179)341,736

112,941
140,748
31,78330,3052,890
19,923
6,247
18,089(3,283)359,646

105,066(61,496)
43,57093,547(69,968)
23,57826,714(21,939)
4,775
20,288
2,073
(705)
1,368
7,349
100,930

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

210,538
54,01753,518318,073

183,750
49,57849,902283,231

47,284
917
183
1,775
(174)
49,987
468,991
810,727

39,260
1,816
138
3,241
(176)
44,280431,812
791,459(Million yen)
As of March 31, 2015
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

12

As of March 31, 201682,272
11,456
10,868240
9,931
52,208
166,977

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

2,612
1,198
27,404172
304
16,763
5,370
53,826
220,804

1,684
945
23,836126328
16,343
6,877
50,141
223,71078,86278,338314,743(6,432)465,51378,86263,451
339,113(6,439)474,989

12,21813
4,307(2,224)
14,316
110,094
589,923
810,7277,078(0)(9,533)(3,000)(5,455)39
98,176
567,748
791,459(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
Foreign exchange gains
Gain on investment of securities
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Compensation expenses
Foreign exchange losses
Share issuance cost
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on step acquisitions
Gain on transfer of businessTotal extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Impairment loss
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

13

For the fiscal year ended
March 31, 2015
260,590
168,039
92,55058,79833,751For the fiscal year ended
March 31, 2016
535,746
312,402223,343
151,991
71,352

161
876
14,103
2,057
68
1,006
18,273

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

173
625
462
1,492
2,754
49,271

389
671
2,671
1,063
4,796
74,60623
61
148,800
148,885

40
40
250
330

195
46
45
286
197,869
12,165
1,814
13,980183,889
2,412
181,477

556
323
35
915
74,022
23,710(189)
23,52150,50020,48030,020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

14

For the fiscal year ended
March 31, 2015
183,889

For the fiscal year ended
March 31, 2016
50,500

5,508
25
6,080
1,437

(5,113)(24)(19,832)(805)(3,169)9,882
193,771(440)(26,216)
24,284

190,009

10,2483,761

14,036

(3) Consolidated Statements of Changes in Equity
For the Fiscal Year Ended March 31, 2015 (From April 1, 2014 to March 31, 2015)(Million Yen)
Shareholder’s equity
Capitalstock
Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes of items during
periodIssuance of new shares
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period27,712

CapitalsurplusRetainedearnings

27,187140,270

Total
shareholders’equityTreasuryshares(6,389)(1,268)27,712

27,18751,15051,150139,002

188,782(1,268)(6,389)187,513(5,735)102,300(5,735)

181,477

181,477
(44)

(44)

1

2

0

51,15051,150175,741(42)

277,999

78,86278,338314,743(6,432)465,513

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes of items during
periodIssuance of new shares
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
periodValuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit
plans

Total
accumulated
othercomprehens
ive income

Subscription
rights toshares

Noncontrollin
g interests

Total net
assets

6,827

(1)

2,618

(3,661)

5,783-

13,149207,715(1,268)

6,827

(1)

2,618

(3,661)

5,783-

13,149206,446

102,300(5,735)
181,477
(44)
2
5,391

15

1,688

1,436

8,532

-

96,945

105,477

5,391

15

1,688

1,436

8,532

-

96,945

383,476

12,21813

4,307(2,224)

14,316-

110,094

589,92315

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
periodIssuance of new shares
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
periodCapitalsurplus78,862

78,862Retainedearnings

Treasuryshares78,338314,743(14,886)

3,008

63,451

317,752(6,432)

Total
shareholders’equity465,513(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
periodIssuance of new shares
Dividends of surplus
Net income
Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
periodValuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit
plans

Total
accumulated
othercomprehens
ive income

Subscription
rights toshare

Noncontrollinginterests

Total net
assets12,21813

4,307(2,224)

14,316-

110,094

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

567,74816

(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
Loss (gain) on sales and valuation of investment securities
Loss (gain) on step acquisitions
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
Purchase of shares of subsidiaries
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Proceeds from sales 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
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Proceeds from issuance of common shares
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
Increase in cash and cash equivalents from newly consolidated subsidiary
Cash and cash equivalents at end of period

17

For the fiscal year
ended
March 31, 2015

For the fiscal year ended
March 31, 2016

197,869
5,895
1,075(1,038)173(14,103)172(54)(148,800)
1,874
1,724
(358)
(1,117)(1,198)42,114
5,833(190)(13,338)－
34,41974,022
16,182
10,351(2,050)389(1,115)516(27)－(8,613)(212)(8,894)(369)
7,268
87,4452,143(368)(28,264)
2,145
63,101(173)(4,184)
131
(21)
133
(5,772)

11,476(16,953)
1,784(1,599)76－(76,860)(2,236)

418

－

(638)
(86,966)

2,145(5,308)(933)
210(7,517)(359)(44)(5,735)(2,162)
101,837
2
85,298
1,818
34,56943,787346
78,702

11,591941(4,308)(527)(7)(8,659)(23,721)－(9)(24,699)(3,524)29,56978,702－
108,271(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
There is no relevant information.

(Basis of presentation of consolidated financial statements)
There are no major changes from the content of the most recent securities report (submitted June 29, 2015), andso it will be omitted.
(Changes in accounting policies)
Effective from the fiscal year ended March 31, 2016, the Company has applied the “Accounting Standard forBusiness Combinations” (Accounting Standards Board of Japan (ASBJ) Statement No. 21, September 13, 2013;
hereinafter the “Business Combination Accounting Standard”), “Accounting Standard for Consolidated Financial
Statements” (ASBJ Statement No. 22, September 13, 2013; hereinafter the “Consolidated Financial Statement
Accounting Standard”), and “Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, September
13, 2013; hereinafter the “Business Divestiture Accounting Standard”), and along with recording differences in the
Company’s holding value for subsidiaries for which control continues as capital surplus, expenses related toacquisition are recorded in the consolidated fiscal year in which they are incurred. Furthermore, concerningbusiness combinations which occur at or after the beginning of the fiscal year ended March 31, 2016, the method
has been changed to reflect revisions to distribution amounts for acquisition costs resulting from settlement ofprovisional accounting treatment to the consolidated financial statements for the consolidated accounting period towhich the business combination applies. Additionally, changes in presentation in net income, etc. as well as achange in presentation from “minority interests” to “non-controlling interests” have been made. In order to reflect
these changes in presentation, reclassifications have been made in the consolidated financial statements for the
fiscal year ended March 31, 2015.
The application of Business Combination Accounting Standard, etc., have been adopted in accordance withtransitional treatments stipulated in Business Combination Accounting Standard, Paragraph 58-2 (3), Consolidated
Financial Statement Accounting Standard, Paragraph 44-5 (3), and Business Divestiture Accounting Standard,Paragraph 57-4 (3), and the amount of the cumulative effect as of the fiscal year ended March 31, 2016 when the
new accounting standards are retroactively applied to all previous periods has been added to or subtracted from
capital surplus and retained earnings.
As a result, as of the beginning of the fiscal year ended March 31, 2016, goodwill and capital surplus decreasedby ¥11,753 million and ¥14,886 million, respectively, while retained earnings increased by ¥3,008 million. In
addition, for the fiscal year ended March 31, 2016, operating income increased by ¥1,040 million, and ordinary
income and profit before income taxes each increased by ¥1,050 million.
In the consolidated statements of cash flows for the fiscal year ended March 31, 2016, cash flows resulting
from purchase or sales of shares of subsidiaries not resulting in change in scope of consolidation are classified as“cash flows from financing activities,” and cash flows arising from purchase of shares of subsidiaries resulting inchange in scope of consolidation, or cash flows relating to expenses arising from purchase or sales of shares ofsubsidiaries not resulting in change in scope of consolidation, are now classified in “cash flows from operating18

activities.”
As a result of reflecting cumulative effects on net assets at the beginning of the consolidated fiscal year, thebeginning balance of capital surplus on the consolidated statement of changes in equity decreased by ¥14,886
million, while the beginning balance of retained earnings increased by ¥3,008 million.
Effects on per share information are described where appropriate.

(Unapplied accounting standards, etc.)
・Implementation Guidance on Recoverability of Deferred Tax Assets (ASBJ Guidance No. 26 of March 28,
2016)(1) Summary
The accounting treatment on recoverability of deferred tax assets, in principle, follows the framework of the
Auditing Treatment Regarding Judgment of the Recoverability of Deferred Tax Assets outlined in the JICPA
Industry Audit Committee Statement No. 66, i.e. a framework for estimating deferred tax assets by classifying
entities into 5 categories and calculating the amount according to those categories, but it has made the following
necessary revisions on treatment.
1.
2.
3.
4.
5.

Accounting treatments of entities not satisfying any of the category criteria from (Category 1) to (Category
5).
Category criteria of (Category 2) and (Category 3).
Accounting treatments of unschedulable deductible temporary differences for entities in (Category 2).
Accounting treatments for reasonably estimated period for taxable income before temporary difference
adjustments for entities in (Category 3).
Accounting treatments for entities satisfying the category criteria of (Category 4) and also falling in(Category 2) or (Category 3).

(2) Scheduled date of application
These are scheduled to be applied from the beginning of the fiscal year ending December 31, 2016.

(3) Effect of application of the aforementioned accounting standards
The amounts of effects are under evaluation at the time of preparation of financial statements for fiscal year
ended March 31, 2016.

(Changes in methods of presentation)(Consolidated statements of income)"Subsidy income," which was included in “other” of “non-operating income” during the previous fiscal year,
has exceeded 10/100 of the total amount of non-operating income, and is presented separately from the fiscal year
ended March 31, 2016. To reflect this change, the consolidated financial statements for the previous fiscal year
have been rearranged.
As a result, “other” of ¥1,074 million which was presented in “non-operating income” on the consolidated
statement of income during the previous fiscal year has been rearranged to “subsidy income” of ¥68 million and19

“other” of ¥1,006 million.
"Restructuring cost," which was separately presented in "non-operating expenses" during the previous fiscal
year, is no longer significant in value, and is included in “other” from the fiscal year ended March 31, 2016. The
amount of “restructuring cost” presented in “non-operating expenses” during the previous fiscal year was ¥528
million.
" Gain on sales of investment securities," which was included in “other” of “extraordinary income” during theprevious fiscal year, has exceeded 10/100 of the total amount of extraordinary income, and is presented separatelyfrom the fiscal year ended March 31, 2016. To reflect this change, the consolidated financial statements of income
for the previous fiscal year have been rearranged.
As a result, “other” of ¥61 million which was presented in “extraordinary income” on the consolidated
statement of income during the previous fiscal year has been rearranged to “gain on sales of investment securities”
of ¥61 million.

(Consolidated Statements of Cash Flows)"Amortization of goodwill," which was included in “other” of "cash flows from operating activities," ispresented separately from the fiscal year ended March 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, the ¥(123) million which was presented in “other” of "cash flows from operating activities" on the
consolidated statement of cash flows during the previous fiscal year has been rearranged to “amortization of
goodwill” of ¥1,075 million and “other” of ¥(1,198) million.
"Net decrease (increase) in short-term investment securities," which was included in “other” of "cash flows
from investing activities", is presented separately from the fiscal year ended March 31, 2016, due to increased
significance in value. To reflect this change, the consolidated financial statements for the previous fiscal year havebeen rearranged.
As a result, the ¥(811) million which was presented in “other” of "cash flows from investing activities" on the
consolidated statement of cash flows during the previous fiscal year has been rearranged to “net decrease(increase) in short-term investment securities” of ¥(173) million and “other” of ¥(638) million.

(Additional information)(Revision to the amount of deferred tax assets and deferred tax liabilities due to changes in the income tax rate)
In line with the enactment of the “Partial Amendment of the Income Tax Act, etc.” and “Act to Amend the
Local Taxation Act” in the Diet on March 29, 2016, the statutory tax rate used in the calculation of deferred tax
assets and deferred tax liabilities for the fiscal year ended March 31, 2016 (limited to those that are resolved on orafter April 1, 2016) has been changed from the 32.2% in the previous fiscal year to 30.9% for those that will be
paid or collected during the period between April 1, 2016 and December 31, 2018, and to 30.6% for those that will
be paid or collected on or after January 1, 2019.
As a result of this change, the amount of deferred tax assets (amount after deduction of deferred tax liabilities)
increased by ¥31 million, and income taxes – deferred (debit), valuation difference on available-for-sale securities

20(credit), and remeasurements of defined benefit plans (debit) have increased by ¥98 million, ¥161 million, and ¥31
million, respectively.

(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, and otheruses, and fine chemicals. The Company and separate local companies are responsible for domestic activities, andoverseas, 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 a base,and the three reportable segments are “Japan,” “Asia,” and “Americas.”2. Changes to reportable segments
From the consolidated fiscal year under review, in line with changes in accounting categories, the name of thereporting segments has been changed from “North America” to the “Americas,” and business activities of the local
Brazilian company, which were previously included in “Other,” have been transferred to “Americas.”
The impact of this change on segment information is insignificant.
Additionally, segment information for the previous consolidated fiscal year are also shown with revised naming.

3. 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 “Basis of
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,” the method for recording expenses related to acquisition has
been changed to recording in the consolidated fiscal year in which the expenses were incurred, along withrecording differences in the Company’s holding value for subsidiaries for which control continues as capitalsurplus.
Due to this change, compared to the previous method, segment income during the fiscal year ended March 31,
2016 has increased by ¥974 million in the “Japan” segment and by ¥66 million in the “Asia” segment, respectively.
Additionally, as of the beginning of the current fiscal year, goodwill has decreased by ¥10,475 million in the“Japan” segment and by ¥1,277 million in the “Asia” segment, respectively.

21

4. Information on net sales, income (loss), assets, liabilities, and other figures by reportable segment
Previous fiscal year (April 1, 2014 - March 31, 2015)(Million yen)Japan

Reportable segment
Asia
Americas

Subtotal

Other(Note)Total

Net sales
Net sales to outside customers
187,204
43,87025,794
256,8693,720
260,590
Inter-segment net sales or transfers
21,261
3,928
140
25,3301,064
26,394
Total
208,466
47,79825,934282,200
4,784
286,984
Segment income (loss)
34,2324,530
2,685
41,44869
41,517
Share of profit (loss) of entities–
14,180–14,180(77)
14,103
accounted for using equity method
Segment assets
524,437
551,340
26,491 1,102,269
5,756 1,108,025
Other items
Depreciation
3,792
1,122
938
5,854
41
5,895
Increase in property, plant, and
3,247
344,986
747
348,98161
349,042equipment and intangible assets
Notes: 1. “Other” represents business segments that are not included in the reportable segments, and contains
business activities by overseas subsidiaries in Europe, etc.
2. Increases in “Segment assets” in the “Japan” segment and the “Asia” segment, as well as in “Increase inproperty, plant and equipment and intangible assets” in the “Asia” segment are primarily the result ofconsolidating joint venture companies between the Company and WUTHELAM HOLDINGS LTD.

22

Fiscal year ended March 31, 2016 (April 1, 2015 - March 31, 2016)(Million yen)Japan

Reportable segment
Asia
Americas

Subtotal

Other(Note)Total

Net sales
Net sales to outside customers
174,280
317,396
33,156524,833
10,912535,746
Inter-segment net sales or transfers
49,747
5,153
242
55,143
1,058
56,201
Total
224,027
322,549
33,399579,976
11,971
591,948
Segment income (loss)
57,28737,748
5,177
100,214(897)
99,316
Share of profit (loss) of entities
58
1,203
1,262
(146)
1,115
accounted for using equity method
Segment assets
513,033
513,048
30,603 1,056,685
11,725 1,068,411
Other items
Depreciation
3,641
11,332
1,049
16,023
158
16,182
Increase in property, plant, and
3,784
13,274
1,795
18,854
3,422
22,276equipment and intangible assets
Notes: 1. “Other” represents business segments that are not included in the reportable segments, and contains
business activities by overseas subsidiaries in Europe, etc.
2. Increases in “Segment assets” and “Increase in property, plant and equipment and intangible assets” inthe “Other” segment are primarily the result of consolidating a German paint manufacturer.

23

5. 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
For the fiscal year ended
Net sales
March 31, 2015
March 31, 2016
Total reportable segment sales
282,200
579,976
Net sales from “Other”

4,784

11,971

Inter-segment transaction eliminations and other(26,394)(56,201)
adjustments
Net sales recorded in the consolidated financial
260,590535,746statements
Note: “Inter-segment transaction eliminations and other adjustments” includes inter-segment dividend income.
(Million yen)Forthefiscal
year
ended
For
the
fiscalyear
ended
IncomeMarch 31, 2015
March 31, 2016
Total reportable segment income
41,448100,214Segment income (loss) from “Other”

69

(897)

Inter-segment transaction eliminations and other(7,765)(27,964)
adjustments
Operating income recorded in the consolidated
33,751
71,352
financial statements
Note: “Inter-segment transaction eliminations and other adjustments” includes inter-segment dividend income.
(Million yen)
Net assets

As of March 31, 2015

Total reportable segment assets

1,102,269

1,056,685

5,756

11,725(354,868)(358,874)

57,571

81,922

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

As of March 31, 2016

Total company assets (Note)

Net assets recorded in the consolidated financial
810,727
791,459
statements
Note: Total company assets consist of surplus operating funds (cash and deposits), long-term investment funds(investment securities), and deferred tax assets.
(Million yen)
Total of reported
segments
Other items

Depreciation
Increase in property, plantand equipment andintangible assets

Other, net

Consolidated financial
statements
total

Adjustment

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

5,854

16,023

41

158

-

-

5,895

16,182348,981

18,854

61

3,422

-

-

349,042

22,27624

(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., businesscombinations, asset retirement obligations, and rental and other real estate, these have been omitted as they are notconsidered to have a high necessity for disclosure.
(Information on per share)

Net assets per share

Previous consolidated
fiscal year
(From April 1, 2014
To March 31, 2015)¥1,496.16

Current consolidated
fiscal year
(From April 1, 2015
To March 31, 2016)¥ 1464.06¥650.04¥93.61

Basic earnings per share

Diluted earnings per share¥93.60(Notes) 1: Diluted net income per share for the previous consolidated fiscal year is not listed as latent sharessuch as bonds with subscription rights to shares did not exist.
2: The basis of calculations of basic earnings per share and diluted earnings per share are as below.
Previous consolidated
Current consolidated
fiscal year
fiscal year
(From April 1, 2014
(From April 1, 2015
To March 31, 2015)
To March 31, 2016)
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)

181,477

30,020--181,477

30,020279,177

320,706

Diluted earnings per share
Profit attributable to owners ofparent (million yen)
Increase in the number of shares of
10
common stock (thousands of shares)(Subscription rights to shares(-)(10)
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
3 As stated in “Changes in Accounting Policies,” the application of Business Combination AccountingStandard, etc., have been adopted in accordance with transitional treatments stipulated in Business
Combination Accounting Standard, Paragraph 58-2 (3), Consolidated Financial Statement AccountingStandard, Paragraph 44-5 (3), and Business Divestiture Accounting Standard, Paragraph 57-4 (3).
As a result, net assets per share during this fiscal year decreased by ¥33.76, while basic earnings per
share and diluted earnings per share increased by ¥3.28, respectively.
(Significant subsequent events)
There is no relevant information.
25

6. Other(1) State of Sales Performance(Million yen)

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

Previous consolidated
fiscal year
(From April 1, 2014
To March 31, 2015)
245,093
93,35445,78746,44659,504
15,496
260,590

Current consolidated
fiscal year
(From April 1, 2015
To March 31, 2016)
518,364
138,755
253,354
68,281
57,973
17,381535,746(Note) Amounts do not include consumption tax, etc.

26

Compared with previous
fiscal year
(%)
111.5
48.6
453.3
47.0
(2.6)
12.2
105.6