NOTICE: For the convenience of capital market participants, NIPPON PAINT HOLDINGS CO., LTD. Provides
English translation of the information disclosed in Japanese, provided that the original Japanese version prevails overits English translation version in the case of any discrepancy found between the original and translation.

Consolidated Financial Results
for the Nine Months Ended September 30, 2018
[Japanese GAAP]
November 14, 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: November 14, 2018
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: Yes(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Nine Months Ended September 30, 2018 (January 1, 2018 toSeptember 30, 2018)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Nine months ended
Million yen%
Million yen%
Million yen%
Million yen%
September 30, 2018
471,078
4.0
50,810 (10.0)
55,993(4.7)
26,514
5.1
September 30, 2017452,772
56,46758,731
25,236
Note: Comprehensive income: Nine months ended September 30, 2018: ¥28,445 million [(31.3) %]Nine months ended September 30, 2017: ¥41,376 million [ - %]Basic earnings per
Diluted earnings per
share
share
Nine months ended
Yen
Yen
September 30, 2018
82.68
82.66
September 30, 2017
78.69
78.68
The Company has changed its fiscal year-end from March 31 to December 31 from the fiscal year ended
December 31, 2016. Accordingly, the consolidated financial statements for the nine months ended December 31,
2016 was not prepared, and therefore changes from the previous corresponding period for the nine months
ended September 30, 2017 have not been provided.
(2) Consolidated Financial Position
Total assets
Million yen

Net assets

Equity ratio

Million yen%

As of September 30, 2018917,771
632,029
As of December 31, 2017
920,591
629,408
Reference: Equity: As of September 30, 2018: ¥508,376 million
As of December 31, 2017: ¥504,336 million

55.4
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.)
Profit attributable
Basic earnings
Net sales
Operating profit
Ordinary profit
to owners of parent
per share%

Million yen%

Yen

Full year
615,000
1.6
63,000 (16.0)
69,000 (10.2)
Note: Revision to the financial results forecast announced most recently: Yes

Million yen%

Million yen%

Million yen

31,000(16.5)

96.66

* 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):
September 30, 2018: 325,402,443 shares
December 31, 2017: 325,402,443 shares2) Total number of treasury shares at the end of the period:
September 30, 2018: 4,700,978 shares
December 31, 2017: 4,700,301 shares
3) Average number of shares during the period:
Nine months ended September 30, 2018: 320,701,656 shares
Nine months ended September 30, 2017: 320,703,181 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 .............................................................................................................. 3(3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information ........... 4
2. Quarterly Consolidated Financial Statements and Primary Notes ................................................................... 5(1) Quarterly Consolidated Balance Sheets ....................................................................................................... 5(2) Quarterly Consolidated Statements of Income and Comprehensive Income ............................................... 7(3) Notes to Quarterly Consolidated Financial Statements ................................................................................ 9(Notes on going concern assumption) ................................................................................................... 9(Notes in the case of significant changes in shareholders’ equity) .......................................................... 9(Accounting treatments adopted specially for the preparation of quarterly consolidated financial
statements) .............................................................................................................................................. 9(Segment information, etc.) ................................................................................................................... 10

1

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
The period of consolidation for the nine months ended September 30, 2018 is the nine months fromJanuary to September 2018.
During the nine months ended September 30, 2018, consolidated net sales of the Company and its groupcompanies (collectively, the “Group”) increased by 4.0% from the corresponding period of the previous year(the “previous year”), to ¥471,078 million. Consolidated operating profit decreased by 10.0% from the previous
year, to ¥50,810 million due to the effects of an increase in raw material prices, and consolidated ordinary profit
decreased by 4.7% from the previous year, to ¥55,993 million due to a decrease in consolidated operating profit,
despite the recording of the subsidy income related to the removal of factories resulting from an environmental
regulation in China. Profit attributable to owners of parent increased by 5.1% from the previous year, to ¥26,514
million partly due to the gain on sales of non-current assets posted for the sale of land, etc. following the closureof Neyagawa office, despite the effect of a decrease in consolidated ordinary profit.
Results by business segment are as follows.
Japan
In this region, although the number of automobiles manufactured was slightly lower than the previous year,
net sales of automotive coatings were higher than the previous year due to factors such as favorable shipments
of premium design and high value-added coatings and efforts to expand our market share. As for industrial
coatings, due to weak shipments of coatings for construction materials affected by unfavorable market, net
sales were lower than the previous year. As for trade-use paints, despite of the sluggish market conditions, net
sales were slightly higher than the previous year due to factors such as efforts to expand our market share in theretail sector by introducing new products. As for other coatings, net sales were lower than the previous year due
to factors such as the sluggish market conditions of marine coatings and the recording of sales of a large-scalecoating 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 ¥130,149 million. Consolidated operating profit decreased by 3.8% from the previous year, to¥33,923 million due to the effects of an increase in raw material prices and an increase in selling, general andadministrative expenses. ¥14,012 million of dividend income from overseas group companies (¥12,543 million
in the previous year) is included in consolidated operating profit. All of this dividend income is eliminated as aninternal transaction under “Inter-segment transaction eliminations and other adjustments.”
Asia
In this region, net sales for automotive coatings in China, a core region, were higher than the previous year,with a slight increase in the number of automobiles manufactured from the previous year, due to factors such asfavorable production by Japanese and South Korean manufacturers, coupled with the expansion of business toChinese manufacturers. As for trade-use paints, net sales were higher than the previous year, due to factors suchas an increase of sales to major customers in sectors focusing on decorative paints for exterior, despite of thesluggish real estate market conditions due to the strengthening of housing investment regulations. In industrial
coatings, net sales were lower than the previous year, owing primarily to weak shipments of coatings forconstruction 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. 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 4.8% from theprevious year, to ¥273,958 million. Consolidated operating profit decreased by 7.9% from the previous year, to2¥28,173 million mainly due to the effects of an increase in raw material prices.
Americas
In this region, although the number of automobiles manufactured was at the same level as the previous
year, net sales for automotive coatings in the United States, a core region, decreased from the previous year,
due to the effects of exchange rate in addition to a decline in the number of automobiles manufactured by
Japanese manufacturers. In trade-use paints, consolidated net sales increased year on year with the results of
DUNN-EDWARDS CORPORATION, a decorative paints manufacturer, which was consolidated in March
2017, contributing to the sales for the full nine months compared to seven months in the previous year.
As a result of these factors, consolidated net sales for the Americas segment increased by 12.9% from theprevious year, to ¥56,683 million. Consolidated operating profit increased by 3.0% from the previous year to¥2,848 million. Consolidated operating profit of the nine months ended September 30, 2017 included expenses
related to the acquisition of stock of DUNN-EDWARDS CORPORATION.
Other
In this segment, regarding automotive coatings, with number of automobiles manufactured in the region
decreased from the previous year, consolidated net sales decreased by 1.0% from the previous year to ¥10,286
million despite favorable shipments to Japanese and French manufacturers and consolidated operating loss was¥227 million, compared to an operating profit of ¥322 million in the previous year mainly due to the effects ofan increase in raw material prices and the aggravating effects of product mix.

(2) Explanation of Financial Position
Total assets at the end of the third quarter of the fiscal year under review decreased by ¥2,820 million fromthe end of the previous fiscal year to ¥917,771 million. Current assets increased by ¥11,782 million, mainly due
to a decrease in securities, offset by increases in cash and deposits and accounts receivable - trade. Additionally,
non-current assets decreased by ¥14,602 million from the end of the previous fiscal year, primarily caused byfactors such as decreases in trademark rights and goodwill in line with their amortization and a decrease ininvestment securities resulting from the fall in share prices.
Liabilities decreased by ¥5,440 million from the end of the previous fiscal year to ¥285,741 million. The
decrease was mainly attributable to a decrease in loans payable and deferred tax liabilities.
Net assets increased by ¥2,620 million from the end of the previous fiscal year to ¥632,029 million. Thiswas mainly attributable to decreases in valuation difference on available-for-sale securities, foreign currencytranslation adjustment and non-controlling interests, offset by an increase in retained earnings due to therecording of profit attributable to owners of parent.
As a result, equity ratio increased from 54.8% at the end of the previous fiscal year to 55.4%.

3

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information
Net sales in China are projected to fall below the forecasts as a result of the effects of slower growth thanis expected in new housing market, due to the strengthening of regulations to limit housing purchases forinvestment purposes, although our mainstay residential interior paints business is projected to exceed themarket growth rate. Net sales in other regions are also projected to be lower than the forecasts. Operating profit
is projected to fall below the forecasts due to a shortfall in net sales and the effects of an increase in raw
material prices on a global scale.
In view of these circumstances, the full-year consolidated financial results forecast is revised as follows.
Revisions to the Full-Year Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2018
(January 1, 2018 to December 31, 2018)
Net sales

Operating profit

Profit attributable
Basic earnings
to owners ofper share
parentMillion yen
Million yen
Yen

Ordinary profit

Million yen

Million yen

Previously announced forecast (A)650,000

78,00082,00035,500110.69Currently revised forecast (B)615,000

63,00069,00031,00096.66

Amount of change (B-A)(35,000)(15,000)(13,000)(4,500)(5.4)(19.2)(15.9)(12.7)

Change (%)

4

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of December 31, 2017

As of September 30, 2018

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

119,294
165,959
16,18525,05468,565
7,308
17,203(5,889)413,682

64,02978,850142,880

64,27081,538145,808

197,051
61,87054,295313,216

187,625
59,36852,104
299,099

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

54,170
890
4,160
(41)
59,179504,088917,771

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

(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 September 30, 2018

79,94022,38025,354
6,046
2,340
63,150199,212

79,966
21,75927,4274,906
312
73,868208,241

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

21,90531,706187
301
16,5396,861
77,500285,741

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

78,862
63,229397,773(6,458)533,406

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

10,368(32,660)(2,738)(25,030)
179
123,474
632,029
917,771(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Nine Months Ended September 30, 2018

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
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 profit
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 nine months ended
September 30, 2017452,772
268,090
184,682
128,21456,467

7(Million yen)
For the nine months ended
September 30, 2018
471,078
287,247
183,831133,020
50,810

857
583

839
655

847

837

471
2,119
4,879

3,511
2,411
8,256

838
1,052
723
2,615
58,731

939
1,193
941
3,074
55,993

35
4
40

4,136
109
4,245

505
28
533
58,238
17,69040,547
15,31025,236569
15
585
59,653
17,89941,753
15,23826,514

Consolidated Statements of Comprehensive Income
Nine Months Ended September 30, 2018
(Million yen)

ProfitOther comprehensive income

For the nine months ended
September 30, 2017
40,547For the nine months ended
September 30, 2018
41,753249(1,246)
1,694(1,788)(11,389)
630

131

(760)

828
41,376(13,308)
28,44525,57918,186

15,796

10,258Valuation difference on available-for-sale securities
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-controllinginterests8

(3) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
There is no relevant information.

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

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

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

Subtotal

Other(Note)

Total

261,327

50,221

442,378

10,394

452,772

28,3333,870

11932,322655

32,978159,162

265,197

50,340474,701

11,049485,750

35,27330,577

2,766

68,618322

68,941

Japan

Asia

Net sales to outside customers

130,828

Inter-segment net sales or transfers

Net 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

68,618Net income from “Other”

322

Inter-segment transaction eliminations and other adjustments(12,473)

Operating profit recorded in the quarterly consolidated
56,467statements 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(%)

AmountPaint business

438,687－

Automotive paint109,219－

Trade-use paint

233,076－

Industrial paint55,228－Other paint

41,163－

Fine chemical business

14,084－

Total

452,772－

Notes: 1. Consumption taxes are not included in these amounts.

10

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 nine months ended September 30, 2018 differs, and change
from the previous year is not provided.
II. For the nine months ended on September 30, 2018
1. Information on net sales and income (loss) by reportable segment(Million yen)
Reportable segment
Americas

Subtotal

Other(Note)

Total

273,958

56,683

460,792

10,286

471,078

29,891

2,816

175

32,882555

33,438Total

160,040

276,775

56,859493,674

10,841

504,516

Segment income (loss)

33,92328,173

2,848

64,945(227)

64,717

Japan

Asia

Net sales to outside customers

130,149

Inter-segment net sales or transfers

Net sales

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

64,945Net loss from “Other”(227)

Inter-segment transaction eliminations and other adjustments(13,907)

Operating profit recorded in the quarterly consolidated
50,810statements 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

456,597

4.1

Automotive paint

119,0419.0

Trade-use paint245,307

5.2

Industrial paint51,304(7.1)

Other paint40,944(0.5)

Fine chemical business

14,481

2.8

Total

471,078

4.0

Note: Consumption taxes are not included in these amounts.
11