Consolidated Financial Results
for the Three Months Ended March 31, 2022
[IFRS]
May 13, 2022
Company name: Nippon Paint Holdings Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 4612
URL: https://www.nipponpaint-holdings.com/
Representative: Yuichiro Wakatsuki, Director, Representative Executive Officer & Co-President
Wee Siew Kim, Director, Representative Executive Officer & Co-President
Contact: Ryosuke Tanaka, General Manager of Investor Relations and Sustainability
Phone: +81-50-3131-7419
Scheduled date of filing the quarterly securities report: May 13, 2022
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly 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 Three Months Ended March 31, 2022 (January 1, 2022 to March 31, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)

Three months ended
March 31, 2022
March 31, 2021

Revenue
Million yen
284,096
222,678

Three months ended
March 31, 2022
March 31, 2021

Profit attributable toowners of parent
Million yen%
18,072
10.6
16,342－%
27.6－

Basic earnings per
share

Operating profit
Million yen%
24,335(1.5)
24,699－Profit before tax
Million yen%
24,913
3.2
24,134－

ProfitMillion yen
18,264
16,435%
11.1－

Comprehensive income
Million yen
123,808
79,855%55.0－

Diluted earnings per
share

Three months ended
Yen
Yen
March 31, 2022
7.70
7.70
March 31, 2021
7.62
7.62
Note 1: NPHD implemented a stock split in which each share of common stock held by shareholders as of the record date of March 31,
2021 was split into five shares, with April 1, 2021 as the effective date. Basic earnings per share, profit, and diluted earnings per
share are calculated assuming that the stock split was conducted at the beginning of the fiscal year ended December 31, 2021.
Note 2: The Board of Directors of NPHD approved a resolution on August 10, 2021 to dissolve and liquidate Nippon Paint (Europe)
Ltd. (NPE), a consolidated subsidiary of NPHD. In addition, the Nippon Paint Group transferred to Isaac Newton Corporation(INC) the shares of Nippon Paint (India) Private Limited (NPI) held by NPHD, the shares of Nippon Paint Automotive EuropeGmbH (NPAE) held by NPE, and the shares of Berger Nippon Paint Automotive Coatings Private Limited (BNPA) held by
NPHD’s consolidated subsidiary Nippon Paint Automotive Coatings Co., Ltd. on August 27, 2021. As a result, these businesses
have been classified as discontinued operations. Revenue, operating profit, and profit before tax for the fiscal year ended
December 31, 2021 have been reclassified and restated to the amounts for continuing operations excluding discontinued
operations. For more information about the discontinued operations, see “2. Consolidated Financial Statements and Primary
Notes (5) Notes to Consolidated Financial Statements (Discontinued Operations)” on page 19 of the accompanying material.
Note 3: The year-on-year percentage changes in figures for the first quarter of the fiscal year ended December 31, 2021 are not provided
because retrospective adjustment have been applied, beginning with the first quarter of the fiscal year ended December 31,
2021, to amounts for discontinued operations and due to a change in the accounting policy for configuration or customization
costs in a cloud computing arrangement implemented in the previous fiscal year.

(2) Consolidated Financial Position

Total assets

Total equity

Million yen
2,355,742
1,955,083

As of March 31, 2022
As of December 31, 2021

Equity attributableto owners of parent

Equity attributableto owners of parent
to total assets

Million yen
1,070,992
959,518

%
45.5
49.1

Million yen
1,080,821
968,694

2. Dividends
Annual dividends
1stquarter-end
Yen

2nd
quarter-end
Yen

3rd
quarter-end
Yen

Year-end

Total

Yen
Yen
Fiscal year ended
5.00
5.00
10.00
－
－
December 31, 2021
Fiscal year ending－
December 31, 2022
Fiscal year ending
5.00
6.00
11.00
－
December 31, 2022 (Forecast)
Note 1: Revision to the dividends forecast announced most recently: No
Note 2: Composition of the dividend forecast for the 2nd quarter of the fiscal year ended December 31, 2021: ordinary dividend:¥4.00; commemorative dividend: ¥1.00 for the 140th anniversary of the company’s founding.
3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2022 (January 1, 2022 to December 31, 2022)(% indicates changes from the previous corresponding period)
Revenue
Million yen

Operating profit% Million yen%

Profit before tax
Million yen

Profit attributable to Basic earnings perowners of parent
share% Million yen%

Yen

Full year
1,200,000
20.2 115,000
31.3
113,000
30.7
81,00019.9
34.49
Note 1: Revision to the financial results forecast announced recently: No
Note 2: Revenue, operating profit, and profit before tax figures are for continuing operations. The year-on-year percentage changes arechanges in these items for continuing operations from the previous year.

*Notes:(1) Changes in significant subsidiaries during the period under review: No(Changes in specified subsidiaries resulting in changes in the scope of consolidation)
Newly consolidated Excluded(2) Changes in accounting policies and changes in accounting estimates
1) Changes in accounting policies required by IFRS: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: 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, 2022: 2,370,512,215 shares
December 31, 2021: 2,370,512,215 shares2) Total number of treasury shares at the end of the period:
March 31, 2022: 22,248,972 shares
December 31, 2021: 22,286,657 shares
3) Average number of shares during the period:
Three months ended March 31, 2022: 2,348,246,820 shares
Three months ended March 31, 2021: 2,143,589,706 shares
Note: NPHD implemented a 5-for-1 stock split of its common shares with March 31, 2021 as the record date and April 1, 2021 as theeffective date. Total number of shares issued (common stock) is calculated by assuming that the stock split was implemented at the
beginning of the fiscal year ended December 31, 2021.
*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 and other notes(Caution concerning forward-looking statements)
The earnings forecasts and other forward-looking statements in this report are based on information currently available and containrisks and uncertainties. Actual results, etc. may differ significantly from the forecast due to various factors.

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 3
2. Condensed Quarterly Consolidated Financial Statements and Primary Notes ................................... 4(1) Condensed Quarterly Consolidated Statements of Profit or Loss and Comprehensive Income ...... 4(2) Condensed Quarterly Consolidated Statement of Financial Position ............................................. 6(3) Condensed Quarterly Consolidated Statement of Changes in Equity ............................................ 8(4) Condensed Quarterly Consolidated Statement of Cash Flows ....................................................... 9(5) Notes to Condensed Quarterly Consolidated Financial Statements ............................................. 10(Notes on going concern assumption) ..................................................................................... 10(Configuration or Customization Costs in a Cloud Computing Arrangement) .......................... 10(Changes in presentation) ....................................................................................................... 10(Segment information) ........................................................................................................... 10(Business combinations) ......................................................................................................... 14(Discontinued operations) ...................................................................................................... 19(Significant subsequent events) .............................................................................................. 19-1-

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
The Board of Directors of NPHD approved a resolution on August 10, 2021 to dissolve and liquidate NPE. In addition, theNippon Paint Group transferred shares of NPI, NPAE, and BNPA to INC on August 27, 2021. As a result, these businesses havebeen classified as discontinued operations for the purpose of preparing the consolidated financial statements. Based on thisaccounting treatment, revenue, operating profit, and profit before tax are reclassified and restated to the amounts for continuing
operations excluding discontinued operations. The percentage changes from the previous year are changes in these items forcontinuing operations from the previous year. For more information, see “2. Consolidated Financial Statements and Primary Notes(5) Notes to Condensed Quarterly Consolidated Financial Statements (Discontinued Operations)”.
During the three months ended March 31, 2022, consolidated revenue of the Nippon Paint Group increased by 27.6% from thecorresponding period of the previous year to ¥284,096 million due to the acquisition on January 20, 2022 of European paintmanufacturer Cromology Holding SAS (Cromology) by NPHD, making it a subsidiary, and the depreciation of the Japanese yen,coupled with the strong first quarter performance underpinned by continuous selling price increases in the decorative paints
business in China, which is a key business of the Nippon Paint Group. Consolidated operating profit decreased by 1.5% from theprevious year to ¥24,335 million due to raw material price increases around the world. Consolidated profit before tax increasedby 3.2% from the previous year to ¥24,913 million, and profit attributable to owners of parent increased by 10.6% to ¥18,072
million.
Results by business segment are as follows.
As stated in “2. Consolidated Financial Statements and Primary Notes (5) Notes to Condensed Quarterly Consolidated Financial
Statements (Segment Information)”, we changed our reportable segments beginning with the first quarter of the fiscal year ending
December 31, 2022. The year-on-year comparison in the segment information below are based on amounts for the three months
ended March 31, 2021 that have been restated to reflect the change in reportable segments.
Japan
Revenue for automotive coatings decreased from the previous year because the number of automobiles manufactured declined
as a result of semiconductor chip shortage and other factors. Industrial coatings revenue was flat from the previous year due to thecontinuing impact of the pandemic despite solid new housing starts and other favorable market trends. Decorative paints revenue
increased due to factors such as progress at delayed construction projects despite the impact of a resurgence of the pandemic.
As a result, consolidated revenue decreased by 1.9% from the previous year to ¥41,796 million. Consolidated operating profit
decreased by 93.2% to ¥289 million due to raw material price increases and other factors. In the first quarter of the current fiscal
year, all businesses other than businesses related to functions as a listed company and a pure holding company whose expenses
were previously presented under “Adjustments” were spun off and moved to the Japan segment. The aim of this change is to more
properly reflect the operating results of each reportable segment.
NipseaRevenue for automotive coatings increased from the previous year, despite the impact of the semiconductor chip shortage andother factors, due to the increase in the number of automobiles manufactured in China. Revenue for decorative paints, a mainstay
business in Asia, was higher than in the previous year due to the continuing strengths of paint demand for repainting interiors ofexisting homes in China and aggressive selling price increases in major markets including China, Malaysia, Indonesia, and Turkey.
As a result, consolidated revenue increased by 26.3% from the previous year to ¥152,628 million. Consolidated operating profit
decreased by 8.5% to ¥17,807 million due to increases in raw material prices.
DuluxGroup
Earnings of Cromology are included in the consolidated performance of the Nippon Paint Group beginning with January 2022.
Revenue for decorative coatings was robust overall due to progress with selling price increases in Oceania and Europe. Revenue
in the paint related business was robust due to strong consumer DIY and trade DIFM sales in Oceania, coupled with strong sales-2-

of External Thermal Insulation Composite Systems (ETICS) in Europe.
As a result, consolidated revenue increased by 63.8% from the previous year to ¥68,027 million, and consolidated operating
profit increased by 11.7% to ¥6,408 million.
Americas
Revenue for automotive coatings increased from the previous year, driven by the weaker yen, despite lower production of
automobiles compared to the previous year in the United States, a core region, due to production adjustments at automobile
manufacturers as a result of the semiconductor chip shortage. Decorative paints revenue increased from the previous year due tofactors such as solid housing demand and favorable weather.
As a result, consolidated revenue increased by 22.2% from the previous year to ¥21,644 million. Consolidated operating profit
decreased by 6.8% to ¥862 million due to higher prices of raw materials.

(2) Explanation of Financial Position
Total assets at the end of the first quarter of the current fiscal year increased by ¥400,658 million from the end of the previous
fiscal year to ¥2,355,742 million.
Current assets increased by ¥112,004 million mainly due to an increase in trade and other receivables. Non-current assets
increased by ¥288,654 million mainly because of an increase in goodwill resulting from the acquisition of Cromology.
Liabilities increased by ¥288,531 million yen to ¥1,274,920 million mainly due to an increase in bonds and borrowings.
Equity increased by ¥112,126 million to ¥1,080,821 million. This was mainly attributable to an increase in foreign currencytranslation adjustment.
As a result, equity attributable to owners of parent to total assets decreased from 49.1% at the end of the previous fiscal year to
45.5%.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information
There are no changes in the consolidated earnings forecast for the fiscal year ending December 31, 2022 provided in the financial
report for the fiscal year ended December 31, 2021 that was released on February 14, 2022.

-3-

2. Consolidated Financial Statements and Primary Notes(1) Consolidated Statements of Profit or Loss and Comprehensive Income
Consolidated Statement of Profit or Loss
Three Months Ended March 31(Million yen)
For the three months ended
March 31, 2021
Restated (Note)
Continuing operations
Revenue
Cost of sales

For the three months ended
March 31, 2022

222,678(131,590)

284,096(174,841)

91,088109,255(67,965)
2,388
(810)

(85,180)
1,325(1,065)

Operating profit
Finance income
Finance costs
Share of profit (loss) of investments
accounted for using equity method
Loss on step acquisitions

24,6992,259(1,694)24,3352,124(1,893)471

348(1,601)－

Profit before tax
Income taxes

24,134(7,657)

24,913(6,649)Profit from continuing operations

16,477

18,264(42)

Gross profit
Selling, general and administrative expenses
Other income
Other expenses

Discontinued operations
Profit (loss) from discontinued operations
Profit16,435－
18,264

Profit attributable to
Owners of parent
Non-controlling interests

16,342
92

18,072
191

16,435

18,264

Continuing operations
Discontinued operations

7.64(0.01)

7.70
－

Total

7.62

7.70

Diluted earnings (loss) per share (yen)Continuing operations
Discontinued operations

7.63(0.01)

7.70

Total

7.62

7.70

ProfitEarnings per share
Basic earnings (loss) per share (yen)Note: Please refer to “(5) Notes to the Consolidated Financial Statements”.

-4-－Condensed Quarterly Consolidated Statement of Comprehensive Income
Three Months Ended March 31(Million yen)
For the three months ended
March 31, 2021
Restated (Note)

For the three months ended
March 31, 2022

16,435

18,264

855

768

(44)

(55)

1

－

811

713

62,352

101,070

36

3,242

219

517

62,608104,829

Total other comprehensive income

63,420105,543

Comprehensive income

79,855

123,808

79,420123,177

435

631

79,855

123,808

ProfitOther comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value
through other comprehensive income
Remeasurements of defined benefit plans
Share of other comprehensive income ofinvestments accounted for using equity
methodTotal of items that will not be reclassified to
profit or loss
Items that may be reclassified to profit or loss
Exchange differences on translation offoreign operations
Cash flow hedges
Share of other comprehensive income ofinvestments accounted for using equity
methodTotal of items that may be reclassified to
profit or loss

Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income
Note: Please refer to “(5) Notes to the Consolidated Financial Statements”-5-(2) Condensed Quarterly Consolidated Statement of Financial Position(Million yen)
As ofDecember 31, 2021

As ofMarch 31, 2022

AssetsCurrent assets
Cash and cash equivalents

138,813

178,184

Inventories

132,798

161,800

Trade and other receivables

266,908322,257

Other financial assets

39,924

24,613

Other current assets

18,43022,526596,876

709,382

Assets held for sale

3,860

3,358

Total current assets

600,736

712,741

Property, plant and equipment

301,706

346,900

Goodwill

652,692

843,694

Other intangible assets

300,200

344,848

Investments accounted for using equity method

31,40632,430

Other financial assets

51,44854,674

Other non-current assets

11,873

12,707

Deferred tax assets

5,019

7,745

1,354,346

1,643,000

1,955,083

2,355,742

Subtotal

Non-current assets

Total non-current assets
Total assets-6-

(Million yen)
As ofDecember 31, 2021

As ofMarch 31, 2022

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables

209,686

238,178

Bonds and borrowings

65,115259,917

Other financial liabilities

28,70133,374

Income taxes payable

11,105

12,623

Provisions

2,478

5,588

Other current liabilities

55,546

68,213

Total current liabilities

372,633

617,896

Bonds and borrowings

457,919469,286

Other financial liabilities

56,28871,964Retirement benefit liability

18,57018,886

Non-current liabilities

Provisions
Other non-current liabilities

777

1,088

6,157

11,413

Deferred tax liabilities

74,04084,385

Total non-current liabilities

613,754

657,023

986,3881,274,920

671,432

671,432－

36

Total liabilities

EquityShare capital
Capital surplus
Treasury shares(6,153)(6,143)Retained earnings

228,009234,538

Other components of equity

66,230171,128

Total equity attributable to owners of parent

959,518

1,070,992

9,176

9,828

968,694

1,080,821

1,955,083

2,355,742

Non-controlling interests
Total equity
Total Liabilities and equity-7-(3) Condensed Quarterly Consolidated Statement of Changes in Equity
For the Three Months Ended March 31, 2021 (From January 1, 2021 to March 31, 2021)(Million yen)

Share capital
Balance as of January 1, 2021

Equity attributable to owners of parent
Other
CapitalTreasury
Retainedcomponents
surplussharesearnings
of equity

Total

Noncontrollinginterests

Total equity

78,862

63,320(6,268)444,639(12,156)

568,398

131,407699,805

－

－

－

(760)

(42)

(803)

－

(803)

78,862

63,320(6,268)443,878(12,199)

567,594

131,407

699,002

Profit－－－16,342－

16,34292

16,435

Other comprehensive income

－

－

－

－

63,077

63,077342

63,420－－－16,342

63,07779,420435

79,855592,569

592,569－－－

1,185,139－

1,185,139

New share issuance expenses－(3,619)－－－(3,619)－(3,619)Purchase of treasury shares

－

－

(3)

－

－

(3)

－

(3)

Disposal of treasury shares

－

218

50

－

－

269

－

269

Dividends
Changes in ownership interestin subsidiaries
Transfer from retained earnings
to capital surplus
Change in scope of
consolidation
Transfer from other componentsof equity to retained earnings
Other

－

－

－

(7,380)－(7,380)(95)(7,476)－(912,321)－－(7,033)(919,354)(124,174)(1,043,529)－

259,832－(259,832)

－

－

－

－

－

－

－

－

－

－

797

797

－

－

－

573

(573)

－

－

－

－

－

－

－

－

－

21

21

Total transactions with owners

592,569(63,320)46(266,639)(7,606)

255,050(123,451)

131,598

Balance as of March 31, 2021

671,432－(6,221)

193,581

43,271

902,064

8,391

910,455

Cumulative impact of changes inaccounting policies
Beginning balance reflectingchanges in accounting policies

Comprehensive income
Issuance of new shares

For the Three Months Ended March 31, 2022 (From January 1, 2022 to March 31, 2022)(Million yen)

Share capital
Balance as of January 1, 2022

Equity attributable to owners of parent
Other
CapitalTreasury
Retainedcomponents
surplussharesearnings
of equity

Total equity

959,518

9,176

968,694

Total

671,432－(6,153)228,009

Profit－－－18,072－

18,072

191

18,264

Other comprehensive income

－

－

－

－

105,104

105,104

439

105,543－－－

18,072

105,104

123,177

631

123,808

Issuance of new shares

－

－

－

－

－

－

－

－

New share issuance expenses

－

－

－

－

－

－

－

－

Purchase of treasury shares

－

－

(0)

－

－

(0)

－

(0)

Disposal of treasury shares

－

36

10

－

(7)

39

－

39

Dividends
Changes in ownership interestin subsidiaries
Transfer from retained earnings
to capital surplus
Change in scope of
consolidation
Transfer from other componentsof equity to retained earnings
Other

－

－

－

(11,741)－(11,741)(0)(11,742)

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

20

20

－

－

－

197

(197)

－

－

－

－

－

－

－

－

－

1

1

Total transactions with owners

－

36

10

(11,543)(205)(11,702)21(11,681)

Balance as of March 31, 2022

671,432

36(6,143)

234,538

171,128

1,070,992

9,828

1,080,821

Comprehensive income-8-(66,230)

Noncontrollinginterests

(4) Consolidated Statement of Cash Flows(Million yen)
For the three months ended
March 31, 2021
Restated (Note)

For the three months ended
March 31, 2022

24,134
8,356(1,528)
1,601
(765)
1,523

24,913
10,198
(32)
－
(487)
1,734

(471)

(348)

(7,346)(16,023)(8,198)(1,239)
2,554
2,597
839
32
(1,926)(5,615)(10,557)(22,380)(1,506)
620
270
2,426
804
1,394
(2,154)(8,163)(517)－(4,590)(5,690)5,758
17,406(7,370)169(666)(98,280)(3,004)
169
93

1,071
13,670(9,775)536(1,210)(141,888)(1,956)
1,324
633

(47)

－

(85,771)(137,592)

2,607
693
(928)
(2,200)(5,214)(7,334)(1,325)

173,836
30,000(9,001)(2,849)－(11,688)－(10,011)

－

－
(31)

(3,350)
(237)

(42)

－

(23,788)

176,710

3,616

5,944

(110,534)
232,134

39,370138,813

Cash flows from operating activities
Profit before tax from continuing operations
Depreciation and amortization
Gain on bargain purchase
Loss on step acquisitions
Interest and dividend income
Interest expenses
Share of loss (profit) of investments accounted forusing equity method
Decrease (increase) in inventories
Decrease (increase) in trade and other receivables
Increase (decrease) in trade and other payables
Increase (decrease) in other current liabilities
Other
SubtotalInterest received
Dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities fromdiscontinued operations
Net cash provided by (used in) operating activities
Cash flows from investing activities
Net decrease (increase) in time deposits
Net decrease (increase) in short-term investment securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investments in subsidiaries
Payments for loans receivableCollection of loans receivable
Other
Net cash provided by (used in) investment activities fromdiscontinued operations
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease obligations
Payments for issuance of shares
Dividends paid
Dividends paid to non-controlling interests
Dividends paid to former shareholders of
newly consolidated subsidiaries
Purchase of additional shares of subsidiaries
Other
Net cash provided by (used in) financing activities
from discontinued operations
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period-9-

(Million yen)
For the three months ended
March 31, 2021
Restated (Note)

For the three months ended
March 31, 2022

121,600

178,184

Cash and cash equivalents at end of period
Note: Please refer to “(5) Notes to the Consolidated Financial Statements ”.

(5) Notes to Condensed Quarterly Consolidated Financial Statements(Notes on going concern assumption)
There is no relevant information.
(Configuration or customization costs in a cloud computing arrangement)
In April 2021, the IFRS Interpretations Committee published the agenda decision on “Configuration or customization costs in acloud computing arrangement (IAS 38)”. The agenda decision clarified the accounting treatment of upfront costs incurred by acustomer to receive cloud computing services in a cloud computing arrangement.
Some Nippon Paint Group companies had been capitalizing costs associated with configurations to enable customers to receive
cloud computing services or customizations to tailor cloud computing services to customer specifications. Based on discussions
leading up to the agenda decision published by the IFRS Interpretations Committee in April 2021, we have changed our accounting
policies involving configuration or customization costs in a cloud computing arrangement to a method whereby costs will berecognized upon delivery of cloud computing platform configurations or customizations beginning with the end of the fiscal year
ended December 31, 2021.
This accounting policy change is applied retrospectively. The consolidated financial statements for the three months ended March
31, 2021 have been adjusted to reflect this change.
As a result, compared to the amounts prior to the retrospective application of this accounting policy change, in the consolidated
statement of profit or loss for the three months ended March 31, 2021, selling, general and administrative expenses increased by¥205 million and operating profit, profit before tax, profit from continuing operations, and profit decreased by ¥205 million each.
In the consolidated statement of cash flows for the three months ended March 31, 2021, profit before tax from continuing operations
decreased by ¥205 million.
Basic earnings per share and diluted earnings per share from continuing operations and the total of earnings per share and diluted
earnings per share from continuing operations and discontinued operations for the previous year decreased by ¥0.10 each.
(Changes in presentation)
Profit or loss from businesses classified as discontinued operations is separately presented on the condensed quarterly
consolidated statements of profit or loss, net of income taxes, under profit from continuing operations. The condensed quarterly
consolidated statements of profit or loss, condensed quarterly consolidated statement of cash flows, and relevant notes to thecondensed quarterly consolidated financial statements for the three months ended March 31, 2021 have been partially reclassified
for businesses classified as discontinued operations.
(Segment information)(1) Summary of reportable segments
The Nippon Paint Group’s operations are classified into business segments for which separate financial information is available
and are subject to periodical evaluation by the Board of Directors, which is the highest decision-making body, in order to makedecisions regarding management resource allocation and performance assessments. The Group’s primary businesses are the paintand coating business which manufactures and sells automotive coatings, decorative paints, industrial coatings, fine chemicals, andother paints, and the paint related business which manufactures and sells paint-related products such as adhesives. An independent
local company and companies overseen by this company are responsible for business activities in Japan, and independent local
companies, led by Nipsea and DuluxGroup, are responsible for the Asia, Oceania, and other overseas regions. Other independent
local companies are responsible for Americas. Each company constitutes an individual management unit which makes decisions
about items to carry and comprehensive strategies for each region to foster business growth.
As a result, the Group consists of four reportable segments divided by management unit or region with a manufacturing andsales structure as a base: Japan, Nipsea, DuluxGroup, and Americas. The Japan segment includes the overseas marine coatings- 10 -

business.
The Board of Directors of NPHD approved a resolution at the Board of Directors on August 10, 2021 to dissolve and liquidate
NPE and the shares of NPI, NPAE, and BNPA were transferred to INC on August 27, 2021. As a result, these businesses have beenclassified as discontinued operations and excluded from the segment information. The segment information for the three months
ended March 31, 2021 are amounts for continuing operations only, excluding discontinued operations.
(2) Matters related to changes in reportable segment
The Group previously reported its financial results based on four reportable segments divided by region with the manufacturing
and sales structure as a base: Japan, Asia, Oceania, and Americas. However, we have determined that reportable segments divided
by management unit or region with a manufacturing and sales structure as a base would more appropriate reflect our current
organizational structure.
As a result, we changed our reportable segments to segments divided by management unit or region with a manufacturing andsales structure as a base: Japan, Nipsea, DuluxGroup, and Americas. The Japan segment includes the overseas marine coatingsbusiness. The segment information for the three months ended March 31, 2021 has been restated based on the new reportablesegments.

- 11 -

(3) Performance by reportable segment
For the Three Months Ended March 31, 2021 (From January 1, 2021 to March 31, 2021)(Million yen)
Reportable segment
DuluxGroup Americas

Total

Adjustments(Note)

Condensed quarterly
consolidated financial
statements

Japan

NipseaRevenue from externalcustomers

42,625

120,821

41,51817,712

222,678－

222,678

Intersegment revenue

3,855

882

109

11

4,859

(4,859)－Total

46,481

121,704

41,62817,723

227,537(4,859)222,678

4,252

19,466

5,736

925

30,380(5,680)24,699

Revenue

Segment profit (loss)
Financial income

2,259

Financial costs(1,694)

Share of profit ofinvestments accounted forusing equity method

471

Loss on step acquisitions(1,601)

Profit before tax

24,134

Note: Adjustments for segment profit of ¥-5,680 million include Headquarters expenses of ¥-7,278 million that do not belong to
any reportable segment and intersegment eliminations of ¥1,597 million.
For the Three Months Ended March 31, 2022 (From January 1, 2022 to March 31, 2022)(Million yen)
Reportable segment
DuluxGroup Americas

Total

Adjustments(Note)

Condensed quarterly
consolidated financial
statements

Japan

NipseaRevenue from externalcustomers

41,796

152,628

68,027

21,644

284,096－

284,096

Intersegment revenue

4,126

980

129

21

5,257

(5,257)－

Total

45,923

153,609

68,156

21,665289,354(5,257)

284,096

Segment profit289

17,807

6,408

862

25,368(1,033)24,335

Revenue

Financial income

2,124

Financial costs(1,893)

Share of profit ofinvestments accounted forusing equity method

348

Loss on step acquisitions－

Profit before tax

24,913

Note: Adjustments for segment profit of ¥-1,033 million includes Headquarters expenses of ¥-933 million that do not belong to
any reportable segment and intersegment eliminations of ¥-100 million yen.

- 12 -

(4) Information on products and services
For the Three Months Ended March 31, 2021 (From January 1, 2021 to March 31, 2021)(Million yen)Japan

NipseaDuluxGroup

Americas

Total

Paint and coating business
Automotive coatings

10,203

18,631－

6,169

35,003

Decorative paints

9,936

85,461

21,538

11,228128,165

Industrial coatings

9,026

8,897

1,553

－

19,476

Fine chemicals

2,250

1,592

－

314

4,156

Other paints

11,209

2,612

－

－

13,822

42,625

117,194

23,092

17,712200,624－

3,627

18,426－22,05342,625

120,821

41,51817,712

222,678

Paint related business
Total

For the Three Months Ended March 31, 2022 (From January 1, 2022 to March 31, 2022)(Million yen)Japan

NipseaDuluxGroup

Americas

Total

Paint and coating business
Automotive coatings

8,651

21,151－

6,970

36,774

Decorative paints

10,413111,261

44,285

14,306180,266

Industrial coatings

9,087

9,286

1,913

－

20,287

Fine chemicals

1,951

2,082

－

366

4,400

Other paints

11,692

2,886

－

－

14,57841,796146,667

46,19921,644

256,307－

5,960

21,828－27,78841,796

152,628

68,027

21,644

284,096

Paint related businessTotal- 13 -

(Business combinations)
For the three months ended March 31, 2021 (From January 1, 2021 to March 31, 2021)(Acquisition of the 100% ownership of the Asian JVs and the Indonesia business)
Main reasons for the business combinations
The many applications of paint include residential and commercial construction, transport applications such as cars and trains, andinfrastructure such as bridges and roads, meaning that demand for paint increases in step with population growth and urbanization. Asia
is becoming a key region for the Group’s sustainable growth in terms of both market size and growth rate. NPHD acquired approximately
100% ownership of the Asian JVs (the “Target JVs,” collectively with the Indonesia business, the “Target Businesses”) with the
Wuthelam Group (Wuthelam and Mr. Goh Hup Jin collectively, “Wuthelam and Mr. Goh”; Wuthelam and Mr. Goh, Wuthelam’s
subsidiaries, and companies substantively controlled by Wuthelam and Mr. Goh are collectively, the “Wuthelam Group”), due to theoutlook for increasing demand in Asia because of the projected demographic and economic growth in Asia. The Indonesia business
operates in the growing Indonesian market and has a large share of the decorative paints market, which has significant growth potential
due to its correspondence to population and per-capita GDP growth. Acquiring the Indonesia business gives us a dominant position withits “Asia x Construction” business model. Furthermore, by increasing its equity and enhancing its financial soundness by issuing newshares through a third-party allotment to Nipsea International Limited and Fraser (HK) Limited, which are both members of the
Wuthelam Group, we will be in an even better position to use M&A for the maximization of shareholder value. This is expected to further
accelerate growth.
The acquisition of the Target Businesses will also enable us to fully capture in the non-controlling interests of the Asian JVs that
previously belonged to the Wuthelam Group, as well as the profits of the Indonesia business, which will be consolidated into theCompany’s earnings. This is expected to increase basic earnings per share (EPS) and enable us to optimize the allocation of resources
by reducing the outflow of profits. Furthermore, the consolidation of the Asian JVs and Indonesia business will allow shifting theindustrial coatings business from a regional focus to a business focus and constructing a unified global system. This will enable faster
decision-making and business execution and is expected to increase operating profit. Therefore, these acquisitions are expected tocontribute to the maximization of shareholder value.
The transaction includes the following business combination and acquisition of non-controlling interests.
(1) Business combination(i) Summary of business combination(a) Name and business activities of companies acquired
Name of companies acquired: Neave Limited and its subsidiary PT Nipsea Paint and Chemicals (the Indonesia business)
Business activities: Manufacture and sale of paint(b) Date of acquisition
January 25, 2021
(c) Percentage of equity interests with voting rights acquired: 100%(d) Method of acquisition of control: By acquisition of shares(ii) Fair value of assets acquired and liabilities assumed at the date of business combination（Million yen）
Fair value
Cash and cash equivalents

1,062

Property, plant and equipment

18,079Intangible assets

48,010

Other assets

15,444

Fair value of liabilities assumed(18,055)

Fair value of assets acquired and liabilities assumed, net

64,542- 14 -

Trade and other receivables(Million yen)Contractual amount due

Fair value

Trade and other receivables

7,249

6,980

Accounts receivable-other

97

93

Total

7,346

7,074

Best estimate of contractual cash flows not expected tobe collected

(272)

－

Net total

7,074

7,074

Note 1: The acquisition price is allocated to assets and liabilities based on the fair value at the date of obtaining control. The allocationof the acquisition price was completed during the six months ended June 30, 2021. The details of adjustments from the initial
provisional amounts are as follows. Following the finalization of provisional accounting treatment, the consolidated financial
statements for the three months ended March 31, 2021 have been restated retrospectively.
Property,plant
andequipment
Intangible assets (Note 2)¥11,277 million increase¥47,985 million increase

Other assets
Fair value of liabilities
assumedNon-controlling interests¥1,329 million increase¥12,118 million increase

Goodwill¥48,424 million decrease¥48 million increase

Note 2: Intangible assets comprise ¥43,570 million of trademark rights and ¥4,415 million of customer-related assets. Fair market valueof trademark rights is determined using the royalty exemption method and customer-related assets using the excess earnings
method in order to allocate the acquisition price.
(iii) Consideration transferred and goodwill(Million yen)AmountConsideration transferred(Cash）(Claimforpayment
consideration) (Note 1)

Fair value of assets acquired and liabilities
assumed, net
Non-controlling interests (Note 2)
Goodwill (Note 3)ofA

100,000

B

135,490C64,542D

64

A+B-(C-D）

171,012Note 1: NPHD issued new shares through a third-party allotment in exchange for a contribution in kind.
Note 2: Non-controlling interests are measured as the ownership percentage of non-controlling interests of the fair value ofidentifiable net assets of the acquired company
Note 3: Goodwill primarily reflects the ability to generate excess earnings in the future and synergies with existing
businesses. Goodwill does not include any amount which is expected to be deductible for tax purposes.
(iv) Acquisition-related expenses
Account item: Selling, general and administrative expenses
Amount: ¥385 million(v) Effects on the condensed consolidated statement of profit or loss
Financial results of the acquired company on and after the date of acquisition recognized in the condensed consolidated
statement of profit or loss

- 15 -

（Million yen）
For the three months ended
March 31, 2021
(From January 1, 2021 toMarch 31, 2021)
9,910

Revenue
Profit1,835(vi) Effects of business combination on cash flows(Million yen)AmountConsideration paid for acquisition

100,000

Cash and cash equivalents(1,062)

Purchase of shares of subsidiaries

98,937(2）Acquisition of non-controlling interests
In the three months ended March 31, 2021, NPHD acquired additional shares of the following companies in order to establish afoundation for growth through the integration of the Group’s Asian operations.
As a result, non-controlling interests declined by ¥124,174 million, capital surplus by ¥912,321 million, and other componentsof equity by ¥7,033 million. Due to these changes, capital surplus became negative, and ¥259,832 million was transferred fromretained earnings to capital surplus to make capital surplus zero.
Ownership ratio of voting rights(indirect ownership)Company

Prior toacquisition

Additional
acquisition

Afteracquisition

Nippon Paint (China) Company Limited (Note)

51%
(－%)

Guangzhou Nippon Paint Co., Ltd. (Note)

51%
(－%)

49%
(49%)
49%
(49%)

100%
(49%)
100%
(49%)

Nippon Paint (Chengdu) Co., Ltd. (Note)

51%
(－%)

Nippon Paint (H.K.) Company Limited (Note)

51%
(－%)

49%
(49%)
49%
(49%)

100%
(49%)
100%
(49%)

Nippon Paint Marine Coatings Co., Ltd. (Note)

60%
(－%)

Nippon Paint Materials Co., Ltd. (Note)

60%
(－%)

Nippon Paint Coatings (Taiwan) Co., Ltd.

51%
(－%)

40%
(40%)
40%
(40%)
49%
(－%)

100%
(40%)
100%
(40%)
100%
(－%)

Nipsea Chemical Co., Ltd.

51%
(－%)

49%
(－%)

100%
(－%)

Nippon Paint (Malaysia) Sdn. Bhd.

51%
(－%)

49%
(－%)

100%
(－%)

Paint Marketing Co. (M) Sdn. Bhd

51%
(－%)

49%
(－%)

100%
(－%)

Nippon Paint (Singapore) Company Private Limited

51%
(－%)

49%
(－%)

100%
(－%)

Nipsea Technologies Pte. Ltd.

51%
(－%)

49%
(－%)

100%
(－%)

Nippon Paint (Thailand) Company Limited

51%
(－%)

48.9%
(－%)

99.9%
(－%)

Note: Companies owned indirectly through Nippon Paint Holdings SG Pte. Ltd.

- 16 -

For the three months ended March 31, 2022 (From January 1, 2022 to March 31, 2022)(Acquisition of shares of Cromology Holding SAS)
Main reasons for the business combinations
The European paint market is the world’s second largest* following the China market and has good prospects for stable growth.
Cromology is the fourth largest architectural paint manufacturer in Europe. As a market leader in the architectural paint mar ket,
Cromology operates in many markets in Europe and has a high market share, ranking among the top 3 in France, Italy, Spain andPortugal.
Under the Nippon Paint Group’s ownership, the combination of the group’s financial resources and skill involving brandmanagement, marketing and innovation, with the well-known local brands and strong trade and retail relationships of Cromology
is expected to result in growth in France, Spain, Italy and Portugal as well as in other European markets, including eastern Europe.
Cromology will provide the right level of scale, volume and manufacturing capabilities to serve as the entry point for building adecorative paint and coatings business in Europe and provide a platform to bolt on other acquisitions. Cromology’s integrated
wholly owned network of company operated stores in France, Portugal and Switzerland presents an opportunity to leverage
DuluxGroup’s operational capabilities for operating trade centers. This network also provides a strong platform to leverage
DuluxGroup’s capabilities in selling to DIY consumers in retail channels such as big box home improvement and independent
hardware stores. In addition, Cromology’s store network provides an opportunity to launch new brands in the DuluxGroup’s
portfolio, including brands for woodcare and texture coatings and for sealants, adhesives and fillers.
* Source: Global Market Analysis for the Paint & Coatings Industry (2019-2024) published by American Coatings Association:
https://paint.org/market(1) Business combination(i) Overview of business combination(a) Name and business activities of the acquired company
Name: Cromology Holding SAS
Business activities: Manufacture and sale of paints and paint-related products(b) Date of acquisition: January 20, 2022
(c) Percentage of equity interests with voting rights acquired: 99.8%(d) Method of acquisition of control: By acquisition of shares(ii) Fair value of assets acquired and liabilities assumed at the date of business combination（Million yen）
Fair value
Cash and cash equivalents

9,530

Property, plant and equipment

21,821Intangible assets

22,146

Other assets

30,424

Fair value of liabilities assumed(64,326)

Fair value of assets acquired and liabilities assumed, net

19,596- 17 -

Trade and other receivables(Million yen)Contractual amount due

Fair value

Trade and other receivables

8,454

7,967

Accounts receivable-other

5,313

5,007

Total

13,767

12,975(791)－

12,975

12,975

Best estimate of contractual cash flows not expected tobe collected
Net total

Note: The amounts of assets acquired and liabilities assumed are provisionally calculated based on the information available at thistime because the allocation of acquisition cost had not been completed as of March 31, 2022. Accounting treatment at thetime of the acquisition will be modified if any revisions or additions to the above amounts are needed because NPHD becomesaware of new information about facts and circumstances that existed at the date of the acquisition within one year of theacquisition date.
(iii) Consideration transferred and goodwill(Million yen)AmountConsideration transferred
Fair value of assets acquired and liabilities
assumed, net
Goodwill (Note)(Cash and other assets)A

153,768

B

19,596A-B

134,172

Note: Goodwill primarily reflects the ability to generate excess earnings in the future and synergies with existing businesses.
Goodwill does not include any amount which is expected to be deductible for tax purposes.
(iv) Acquisition-related expenses
Account item: Selling, general and administrative expenses
Amount: ¥1,083 million(v) Effects on the condensed consolidated statement of profit or loss
Financial results of the acquired company on and after the date of acquisition recognized in the condensed consolidated
statement of profit or loss
（Million yen）
For the three months ended
March 31, 2022
(From January 1, 2022 toMarch 31, 2022)
22,648

Revenue
Profit757(vi) Effects of business combination on cash flows(Million yen)AmountConsideration paid for acquisition

150,600

Cash and cash equivalents(9,530)Purchase of shares of subsidiaries

141,070- 18 -(Discontinued operations)
The NPHD Board of Directors approved a resolution on August 10, 2021 to dissolve and liquidate NPE. In addition, the Nippon
Paint Group transferred the shares of NPI, NPAE, and BNPA to INC. As a result, earnings and cash flows pertaining to these businesses
for the three months ended March 31, 2021 have been reclassified as discontinued operations. Profit and loss and cash flows from thediscontinued operations for the previous year have been restated and presented separately.
(1) Financial results of discontinued operations(Million yen)
For the three months ended
March 31, 2021
(From January 1, 2021 toMarch 31, 2021)

For the three months ended
March 31, 2022
(From January 1, 2022 toMarch 31, 2022)

Profit and loss from discontinued operations
Income (Note)

8,859

－

Expenses (Note)(8,857)－

2－

Income taxes

(44)

－

Profit (loss) from discontinued operations

(42)

－

Profit (loss) before tax from discontinued operations(2) Cash flows from discontinued operations(Million yen)
For the three months ended
March 31, 2021
(From January 1, 2021 toMarch 31, 2021)

For the three months ended
March 31, 2022
(From January 1, 2022 toMarch 31, 2022)

Cash flows from discontinued operations
Cash flows from operating activities

(517)

－

Cash flows from investing activities

(47)

－

Cash flows from financing activities

(42)

－

(607)

－

Total
(Significant subsequent events）
There is no relevant information.

- 19 -