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 Six Months Ended September 30, 2014
[Japanese GAAP]
November 6, 2014
Company name: NIPPON PAINT HOLDINGS CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Code number: 4612
URL: http://www.nipponpaint-holdings.com/
Representative: Kenji Sakai, Representative Director and President
Contact: Tsutomu Akagi, Corporate Officer and Director of Corporate Administration
Phone: +81-6-6455-9141
Scheduled date of filing quarterly securities report: November 11, 2014
Scheduled date of commencing dividend payments: December 2, 2014
Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: Yes(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Six Months Ended September 30, 2014 (April 1, 2014 to September 30,
2014)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Operating income
Ordinary income
Net income
Six months ended
Million yen%
Million yen%
Million yen%
Million yen%
September 30, 2014
127,2460.3
15,690(5.2)
22,8320.6
15,6032.0
September 30, 2013
126,897
6.3
16,54722.1
22,68754.9
15,303
95.5(Note) Comprehensive income: Six months ended September 30, 2014: ¥15,464 million [(43.9%)]
Six months ended September 30, 2013: ¥27,547 million [329.8%]
Diluted net income
Net income per shareper share
Six months ended
Yen
Yen
September 30, 201459.85
September 30, 2013
57.94
(2) Consolidated Financial Position
Total assets

Net assets

Million yen

Equity ratio

Million yen%

As of September 30, 2014
323,811
218,451
As of March 31, 2014
324,028
207,715(Reference) Equity: As of September 30, 2014: ¥204,920 million
As of March 31, 2014: ¥194,565 million

63.3
60.0

2. Dividends
1stquarter-end
Yen

Annual dividends
2nd
3rd
quarter-end
quarter-end
Yen

Fiscal year ended March 31, 2014
8.00
Fiscal year ending March 31, 2015
10.00
Fiscal year ending March 31, 2015
(Forecast)(Note) Revision to the forecast for dividends announced most recently: No

Yen

Year-end
Yen

Total
Yen

-

12.00

20.00

-

10.00

20.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2015 (April 1, 2014 to March
31, 2015)(% indicates changes from the previous corresponding period.)
Net income
Net sales
Operating income
Ordinary income
Net income
per share
Million yen%

Million yen%

Million yen%

Full year
270,000
3.6
34,5003.3
47,0000.4(Note) Revision to the financial results forecast announced most recently: No

Million yen

32,500

%

1.1

Yen

124.66* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges in scope of consolidation): 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 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(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, 2014: 265,402,443 shares
March 31, 2014: 265,402,443 shares2) Total number of treasury shares at the end of the period:
September 30, 2014: 4,687,352 shares
March 31, 2014: 4,678,873 shares
3) Average number of shares during the period:
Six months ended September 30, 2014: 260,720,450 shares
Six months ended September 30, 2013: 264,129,462 shares* Presentation regarding the implementation status of the quarterly review procedures
These quarterly financial results are outside the scope of quarterly review procedures under the Financial
Instruments and Exchange Act, and quarterly review procedures for the quarterly consolidated financial statements
are separately performed.
* 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 “Explanation of Consolidated Financial Results Forecast andOther 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. Matters Concerning Summary Information (Notes) ................................................................................... ... 5(1) Changes in Significant Subsidiaries during the Six Months ended September 30, 2014 ........................... 5(2) Accounting Treatments Adopted Specially for the Preparation of Quarterly Consolidated Financial
Statements .................................................................................................................................................. 5(3) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement ...... 5
3. Quarterly Consolidated Financial Statements ................................................................................................ 6(1) Quarterly Consolidated Balance Sheets ..................................................................................................... 6(2) Quarterly Consolidated Statements of Income and Comprehensive Income ............................................. 8(3) Quarterly Consolidated Statements of Cash Flows .................................................................................. 10(4) Notes to Quarterly Consolidated Financial Statements ............................................................................ 11(Notes on going concern assumption) ................................................................................................. 11(Notes in the case of significant changes in shareholders’ equity) ...................................................... 11(Segment information, etc.) ................................................................................................................. 11(Significant subsequent events) ........................................................................................................... 15

1

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the six months ended September 30, 2014, consolidated net sales of NIPPON PAINT HOLDINGS
CO., LTD. (the “Company”) and its group companies (collectively, the “Group”) increased by 0.3% from thecorresponding period of the previous year (the “previous year”), to ¥127,246 million, remaining at the samelevel as the previous year, while consolidated operating income decreased by 5.2% from the previous year, to¥15,690 million due to rising raw material costs and other factors. On the other hand, consolidated ordinary
income increased by 0.6% from the previous year, to ¥22,832 million thanks in part to an increase in share of
profit of entities accounted for using equity method. Consolidated net income was up 2.0% from the previous
year, to ¥15,603 million.
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 under review is fromJanuary to June 2014.
Japan
In this region, while automobile production remained at the same level as the previous year, net sales ofautomotive coatings remained at the same level as the previous corresponding period. As for industrial coatings,
sales of coatings for housing materials declined after the beginning of the second quarter. However, net sales
remained at the same level as the previous corresponding period, owing to the strong performance of coatingsfor construction machinery and other applications. With respect to trade-use paints, net sales fell compared tothe previous corresponding period, reflecting stagnation in construction work due to factors such as an irregularweather in summer and a shortage of workers.
As a result of these factors, consolidated net sales for the Japan segment increased by 0.8% from theprevious year, to ¥91,634 million. Consolidated operating income decreased by 8.9% from the previous year, to¥12,215 million due to factors such as a rise in raw material prices, despite the efforts of cost reduction
initiatives.
Asia
In this region, with regard to the consolidated subsidiary, net sales declined substantially in Thailand
reflecting the impact of the economic slowdown stemming from political instability. Meanwhile in China, net
sales of automotive paints for plastics grew on the back of an increase in sales volume of Japanese automobile
manufacturers.
As a result of these factors, consolidated net sales for this region decreased by 4.0% from the previous
year, to ¥21,643 million, and consolidated operating income increased by 10.5% from the previous year, to¥2,115 million.
With regard to entities accounted for using equity method, in China as a core of such entities, sales ofpaints for house interior continued to be favorable amid a slowdown in the real estate market, and ongoing
efforts were being made to reduce costs mainly of raw materials. Owing to these factors, profitability of thebusiness in China further improved. As a result, share of profit of entities accounted for using equity method
increased by 22.8% from the previous year, to ¥6,279 million.
North America
Regarding automotive coatings business operations in this region, net sales on a yen basis increased due tothe impact of foreign exchange rates, despite a decrease in net sales on a local currency basis caused by the cold
weather in January and February and the sale of a portion of unprofitable businesses at the end of the previous
fiscal year.
As a result, net sales for the North America segment increased by 0.6% from the previous year, to ¥12,023
2

million, and operating income rose by 2.6% from the previous year, to ¥1,182 million.
Other
Net sales for this geographic segment increased by 30.5% from the previous year, to ¥1,944 million, andoperating income increased by 391.8% from the previous year, to ¥90 million.
Moreover, as a result of the acquisition of 39% of shares in a German paint manufacturer in the previous
fiscal year, share of profit or loss of entities accounted for using equity method for this region to be recorded
from the current fiscal year amounted to a loss of ¥12 million partly due to the expense of amortization of
goodwill.

(2) Explanation of Financial Position
Total assets at the end of the second quarter of the fiscal year under review decreased by ¥220 million
from the end of the previous fiscal year to ¥323,811 million. Among them, current assets decreased by ¥4,590
million from the end of the previous fiscal year. This was mainly attributable to decreases in notes and accounts
receivable-trade and inventories as well as a decrease in accounts receivable-other due to dividends received
from overseas subsidiaries.
Non-current assets increased by ¥4,380 million from the end of the previous fiscal year. This was mainly
attributable to an increase in investment securities due to rising share prices and an increase in shares ofsubsidiaries and associates resulting from recording of share of profit of entities accounted for using equity
method.
Liabilities decreased by ¥10,950 million from the end of the previous fiscal year to ¥105,360 million. Thiswas mainly attributable to a decrease in notes and accounts payable-trade, a decrease in income taxes payable
resulting from payments of income taxes, and repayments of loans payable, despite an increase in net defined
benefit liability.
Net assets including minority interests increased by ¥10,740 million from the end of the previous fiscal
year to ¥218,451 million. This was mainly attributable to an increase in retained earnings owing to therecording of net income and an increase in valuation difference on available-for-sale securities due to rising
share prices, despite a decrease in foreign currency translation adjustment resulting from appreciation of theyen.
As a result, equity ratio rose from 60.0% at the end of the previous fiscal year to 63.3%.
(Status of Cash Flows)
During the six months ended September 30, 2014, net cash provided by operating activities was ¥14,579
million, net cash used in investing activities was ¥2,067 million, and net cash used in financing activities was¥11,236 million. As a result, cash and cash equivalents (hereinafter the “funds”) amounted to ¥45,218 million,
an increase of ¥1,430 million from the end of the previous fiscal year.
(Cash flows from operating activities)
Net cash provided by operating activities for the six months ended September 30, 2014 was ¥14,579
million (an increase of ¥7,020 million from the previous year). This was mainly attributable to a cash inflowof ¥17,561 million owing to income before income taxes and minority interests after taking into account noncash expenses such as depreciation and other items, income taxes paid of ¥7,605 million, and interest anddividend income received of ¥4,624 million.
(Cash flows from investing activities)
Net cash used in investing activities for the six months ended September 30, 2014 was ¥2,067 million (adecrease of ¥850 million from the previous year). This was mainly attributable to purchase of property, plantand equipment of ¥1,999 million.
3

(Cash flows from financing activities)
Net cash used in financing activities for the six months ended September 30, 2014 was ¥11,236 million (adecrease of ¥5,900 million from the previous year). This was mainly attributable to cash outflows of ¥7,379
million for repayments of loans payable and ¥3,698 million for cash dividends paid.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
No revisions have been made to the full-year financial results forecast announced on May 9, 2014.
For this forecast, the impact of making joint venture companies in the Asian region the Company’s
subsidiaries through equity acquisition, which was announced on February 3, 2014, was not taken into account.
The impact of this consolidation on consolidated financial results will be disclosed as soon as it is determined.

42. Matters Concerning Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Six Months ended September 30, 2014
There is no relevant information.

(2) Accounting Treatments Adopted Specially for the Preparation of Quarterly Consolidated Financial Statements(Special Accounting Treatments)
Calculation of tax expenses
Tax expenses have been calculated by multiplying income before income taxes and minority interests byan effective tax rate, which is reasonably estimated after the application of tax effect accounting to income
before income taxes and minority interests for the consolidated fiscal year including the second quarter of the
fiscal year under review.

(3) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement(Changes in Accounting Policies)
Effective from the first quarter of the fiscal year under review, the Company adopted the “AccountingStandard for Retirement Benefits” (Accounting Standards Board of Japan (ASBJ) Statement No. 26, May 17,
2012; hereinafter the “Retirement Benefits Accounting Standard”) and the “Guidance on Accounting Standard
for Retirement Benefits” (ASBJ Guidance No. 25, May 17, 2012; hereinafter the “Retirement Benefits
Guidance”), for the provisions prescribed in the main clause of Paragraph 35 of the Retirement Benefits
Accounting Standard and the main clause of Paragraph 67 of the Retirement Benefits Guidance. Accordingly,
the Company reviewed the calculation methods of retirement benefit obligations and service costs, and changed
the method for attributing projected retirement benefits to periods from a straight-line basis to a benefit formulabasis. Additionally, the Company changed the method to determine the discount rate from a method using a
discount rate based on a duration of bonds similar to the average remaining service period of an employee to amethod using a single weighted average discount rate that reflects the projected payment period of retirement
benefits and the amount projected for each payment period.
In adopting the Retirement Benefits Accounting Standard, etc., as of April 1, 2014, the effects of changes
in calculation methods of retirement benefit obligations and service costs are added to or deducted fromretained earnings, pursuant to transitional treatment stipulated under Paragraph 37 of the Retirement Benefits
Accounting Standard.
As a result, as of April 1, 2014, net defined benefit liability increased by ¥1,973 million, while retained
earnings decreased by ¥1,268 million. In addition, operating income, ordinary income, and income before
income taxes and minority interests for the six months ended September 30, 2014 increased by ¥60 million,
respectively.

53. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Million yen)
As of March 31, 2014
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
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
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

6

As of September 30, 2014

43,591
86,714
28,611
4,712
9,033
(492)
172,171

45,01885,20827,240
4,287
6,347
(523)
167,578

27,43334,36761,80127,01333,78560,798

10,984
3,699
14,684

10,398
3,338
13,73672,025
1,888
1,972
(514)
75,371
151,857
324,028

79,102
1,256
1,827
(488)
81,697156,233
323,811(Million yen)
As of March 31, 2014
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Lease obligations
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
Minority interests
Total net assets
Total liabilities and net assets

7

As of September 30, 2014

45,026
11,82412,015281
6,442
15,462
91,052

43,225
10,820
4,541
260
4,207
15,06878,124

754
895
1,427
245
328
17,496
4,111
25,259116,312

787
1,080
1,505
226
310
18,703
4,622
27,235
105,360

27,712
27,187140,270(6,389)188,782

27,712
27,188151,477(6,409)199,969

6,827
(1)
2,618
(3,661)
5,783
13,149207,715
324,028

8,685
9
(505)
(3,237)
4,951
13,530218,451
323,811(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Six Months Ended September 30(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
Other
Total non-operating income
Non-operating expenses
Interest expenses
Compensation expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Other
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Income before minority interests
Minority interests in income
Net income

8

For the six months ended
September 30, 2013
126,897
80,68846,20829,661
16,547For the six months ended
September 30, 2014
127,246
81,62945,61729,927
15,690

32
313
5,114
983
547
6,991

63
442
6,267
632
554
7,960

146
282
422
850
22,687

100
215
502
818
22,832

56
–
56

12
3
15

448
47
496
22,247
5,769
16,477
1,174
15,30380
23
104
22,743
6,021
16,722
1,119
15,603

Quarterly Consolidated Statements of Comprehensive Income
Six Months Ended September 30(Million yen)

Income before minority interests
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, 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 minority interests

9

For the six months ended
September 30, 2013
16,477For the six months ended
September 30, 2014
16,722

3,498
0
4,250
–

1,863
17
(1,735)423

3,320(1,827)

11,06927,547(1,258)15,46425,4402,107

14,771
693

(3) Quarterly Consolidated Statements of Cash Flows(Million yen)
For the six months ended
September 30, 2013

For the six months ended
September 30, 2014

22,247
3,002
(346)
146

22,743
2,939
(505)
100

(5,114)(6,267)

392

68

44
1,306
198
(2,030)–(5,076)
14,771392(173)(7,436)
7,554

7
998
931
(2,570)1,240(2,012)
17,673
4,624(112)(7,605)
14,579(2,470)
91
(434)
21
(131)
(2,923)(1,999)
76
(21)
10
(132)
(2,067)(8,477)
19
(12)
(167)
(6,025)(2,117)(357)–(17,137)
1,227(11,278)
42,793(214)
40(7,205)(139)(21)(3,128)(570)
2(11,236)
(190)
1,085
43,787–346

31,51445,218Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted for using equity
methodLoss (gain) on sales and retirement of property, plant andequipment
Loss (gain) on sales and valuation of investment securities
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
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
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
Cash dividends paid to minority shareholders
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly consolidated
subsidiary
Cash and cash equivalents at end of period10(4) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
There is no relevant information.
(Notes in the case of significant changes in shareholders’ equity)
There is no relevant information.
(Segment information, etc.)[Segment information]
I. For the six months ended September 30, 2013
1. Information on net sales and income (loss) by reportable segment(Million yen)Japan

Reportable segment
North
Asia
America

Subtotal

Other(Note)Total

Net sales
Net sales to outside customers
90,90822,551
11,947
125,407
1,490
126,897
Inter-segment net sales or transfers
6,658
1,483
70
8,212
468
8,680
Total
97,56724,03512,017
133,619
1,958
135,578
Segment income
13,406
1,913
1,152
16,471
18
16,490Share of profit (loss) of entities
ሺ0)
5,114
–
5,114
–
5,114
accounted for using equity method(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 ofdifferences)(Million yen)
IncomeAmountTotal reportable segment income

16,471

Segment income from “Other”

18

Inter-segment transaction eliminations and otheradjustments

56

Operating income recorded in the quarterly consolidated
statements of income
3. Information regarding impairment loss on non-current assets or goodwill, etc. by reportable segment
There is no relevant information.

11

16,547

4. Information on products and services(Million yen)

Change from the previous
year (%)

AmountNet sales to outside customers
Paints119,701

6.2

Automotive

45,743

10.3

Trade-use

24,343

10.6

Industrial

23,345

6.1

Other paints

26,270ሺ3.7)

Fine chemicals

7,196

9.3

126,897

6.3

Total(Note) Consumption taxes are not included in these amounts.

II. For the six months ended September 30, 2014
1. Information on net sales and income (loss) by reportable segment(Million yen)Japan

Reportable segment
North
Asia
America

Subtotal

Other(Note)Total

Net sales
Net sales to outside customers
91,634
21,643
12,023125,302
1,944
127,246
Inter-segment net sales or transfers
6,068
2,139
73
8,282
559
8,841
Total
97,70323,78312,097
133,584
2,504
136,088
Segment income
12,2152,115
1,182
15,51390
15,603
Share of profit (loss) of entities
–
6,279
–
6,279
ሺ12)
6,267
accounted for using equity method(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 ofdifferences)(Million yen)
IncomeAmountTotal reportable segment income

15,513

Segment income from “Other”

90

Inter-segment transaction eliminations and otheradjustments
Operating income recorded in the quarterly consolidated
statements of income

86
15,6903. Changes to reportable segments
As described in changes in accounting policies, the Company changed the method of calculating retirement
benefit obligations and service costs effective from the first quarter of the fiscal year under review, and12accordingly changed the method of calculating retirement benefit obligations and service costs for the businesssegments in the same manner.
As a result of these changes, segment income of “Japan” for the six months ended September 30, 2014 has
increased by ¥60 million compared to that recorded using the previous method.
4. Information regarding impairment loss on non-current assets or goodwill, etc. by reportable segment
There is no relevant information.
5. Information on products and services(Million yen)

Change from the previous
year (%)

AmountNet sales to outside customers
Paints119,671(0.0)

Automotive

45,093(1.4)

Trade-use

23,597(3.1)

Industrial

23,224(0.5)

Other paints

27,755

5.7

Fine chemicals

7,575

5.3

127,246

0.3

Total(Note) Consumption taxes are not included in these amounts.

13

(Significant subsequent events)(Company split associated with transformation into a holding company structure)
In accordance with a split plan approved at the Ordinary General Meeting of Shareholders held on June 27,
2014, the Company established “NIPPON PAINT CO., LTD.” as a newly established succeeding company(wholly-owned subsidiary) on October 1, 2014 to transfer the Company’s overall paint business and non-paintbusiness (including the surface treatment chemicals business), and changed corporate name of NIPPON PAINT
CO., LTD. to “NIPPON PAINT HOLDINGS CO., LTD.,” transforming into a holding company structure.
1. Objectives of company split
In the medium-term management plan for FY2015 and beyond, “Survival Challenge Program: 3rd Stage,”
the Company has set its objective “to catch up with the world’s leading coatings manufacturers.” Based on theactual results it achieved up to the 2nd Stage, the Company decided to change its management structure andaim at “portfolio management” which enables speedy and dynamic business operations and decision making
according to the growth models of businesses or regions in order to grow substantially as a truly global player.
To implement the “portfolio management,” we believe that adequate management infrastructure andspecific growth measures both have to function as two wheels.
By transforming into a holding company structure, a holding company can focus on group management,
while it can substantially delegate its operational authority to business companies. As a result, we can expect
optimized group management and enhanced independent business operations. The flexibility of the holding
company structure should also make great contributions in executing M&A deals smoothly, which are dominantoptions as a growth measure.
2. Overview of company split(1) Schedule
Incorporation-Type Company Split Plan approvedby the Board of Directors:
Incorporation-Type Company Split Plan approvedat the Ordinary General Meeting of Shareholders:Date of split (effective date):

Thursday, May 22, 2014
Friday, June 27, 2014
Wednesday, October 1, 2014

(2) Method
The incorporation-type company split whereby the Company, as a split company, newly established“NIPPON PAINT CO., LTD.,” as a succeeding company.
(3) Details of allotment of shares related to the company split
The newly established company issued 2,000 common shares in the incorporation-type company split
and allotted all of the shares to the Company.
(4) Handling of subscription rights to shares and bonds with subscription rights to shares following thecompany split
Not applicable as the Company does not issue either of them.
(5) Changes in capital stock resulting from the company split
There is no change in the Company’s capital stock resulting from the incorporation-type company split.
(6) Rights and obligations transferred to the succeeding company
As set forth in the “Incorporation-Type Company Split Plan” dated May 22, 2014, the succeedingcompany took over assets, liabilities and other rights and obligations that the Company held in relation to
the transferred businesses as of the effective date of the incorporation-type company split.
The Company has assumed cumulative taking of obligations transferred to the succeeding company.
(7) Capability for fulfillment of obligations
The Company and the succeeding company have sufficient assets to secure the fulfillment of
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obligations to be fulfilled on and after the effective date of the incorporation-type company split.
Therefore, any obligation borne by the Company and the succeeding company should be duly fulfilled.
3. Outlines of companies involved in Split
Split company
Newly established (succeeding) company(As of September 30, 2014)(Established on October 1, 2014)NIPPON PAINT CO., LTD.
(Changed trade name to “NIPPONNIPPON PAINT CO., LTD.
1) Trade name
PAINT HOLDINGS CO., LTD.” as of
October 1, 2014)
2-1-2 Oyodo Kita, Kita-ku, Osaka City,
Same as left
2) Location
Osaka
Name and title ofKenji Sakai, Representative Director
Same as left3)
representativeand President
Manufacturing and sales of all types of Manufacturing and sales of all types ofpaints (for automobiles, constructions, paints (for automobiles, constructions,structures, vessels, metal materials,
structures, vessels, metal materials,
electrical equipment, industrial
electrical equipment, industrial
machinery, roadways, households,
machinery, roadways, households,
4) Business descriptionetc.); and manufacturing and sales ofetc.); and manufacturing and sales of
surface treatment chemicals, electronic surface treatment chemicals, electronic
component materials and chemicalcomponent materials and chemical
products
products
5) Capital¥27,712 million¥100 million

6) Foundation date

March 14, 1881

October 1, 20147) Shares outstanding

265,402,443 shares

2,000 shares

8) Account closing date

March 31

March 31

9)

Major shareholders andshareholding ratios

NIPSEA INTERNATIONAL
LIMITED24.42%Natixis4.73%

NIPPON PAINT HOLDINGS
CO., LTD.

100%

Nippon Life Insurance
4.15%
Company(Note) Shareholding ratios are calculated excluding treasury shares (4,687,352 shares).

4. Outlines of transferred business divisions(1) Description of businesses of transferred divisions
Manufacturing and sales of all types of paints (for automobiles, constructions, structures, vessels, metalmaterials, electrical equipment, industrial machinery, roadways, households, etc.); and manufacturing andsales of surface treatment chemicals, electronic component materials and chemical products(2) Operating results of transferred divisions (FY2013)(Million yen)
Operating results ofOperating results of split
transferred business divisions
company (b)(a)
Net sales

130,26615

130,266

Ratio (a/b)
100%(3) Items and amounts of transferred assets and liabilities (As of September 30, 2014)(Million yen)
AssetsItem

Liabilities
Book value

Item

Book value

Current assets

7,089 Current liabilities

39

Non-current assets

21,405 Non-current liabilities

1,659

Total

28,494 Total

1,699

5. Post-split status
Split company (listed company)
1) Trade name2) Location
3)

Name and title ofrepresentative

NIPPON PAINT HOLDINGS CO., LTD.
2-1-2 Oyodo Kita, Kita-ku, Osaka City,
Osaka
Kenji Sakai, Representative Director andPresident

Newly established (succeeding) company
NIPPON PAINT CO., LTD.
Same as left
Same as left

4) Business description

Group strategies planning and groupcompanies governance and management

Manufacturing and sales of all types ofpaints (for automobiles, constructions,structures, vessels, metal materials,
electrical equipment, industrial
machinery, roadways, households,etc.); and manufacturing and sales of
surface treatment chemicals, electronic
component materials and chemical
products

5) Capital¥27,712 million¥100 million

6) Account closing date

March 31

March 31

6. Implemented accounting treatments
Treated as a transaction under common control in accordance with the “Accounting Standards for
Business Combinations” (ASBJ Statement No. 21, December 26, 2008) and the “Guidance on AccountingStandard for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ GuidanceNo. 10, December 26, 2008).
(Business-by-business split-off and merger of subsidiaries)
The Group plans to split off its group company, NIPPON PAINT CO., LTD. (Head Office: Osaka City,
Osaka; Kenji Sakai, President) into separate companies by business aiming to be conducted by April 2015, andto merge those split-off companies with some of its subsidiaries, subject to approvals and permissions bysupervisory authorities. At the Board of Directors’ meeting held on October 1, 2014, the launch of preparations
toward the realization of such plan was resolved.
1. Objectives of business-by-business split-off and merger of subsidiaries
With an aim to catch up with the world’s leading coatings manufacturers, the Company transformed into aholding company structure enabling the realization of optimized group management and independent business
operations on October 1, 2014. In order to utilize this management infrastructure and accelerate the business
operations according to region or business-specific growth paths (i.e., growth models), the Company decided
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to reorganize NIPPON PAINT CO., LTD. and some of domestic subsidiaries aiming to be conducted by April
2015 and establish four business operating companies.
Firstly, in order to promote independent operations of individual businesses of different growth paths(growth models), the newborn “NIPPON PAINT CO., LTD.” (established on October 1, 2014) will be split
off into four separate companies by business (automotive coatings, industrial coatings, trade-use paints, andsurface treatment business). In addition, these four companies split off from the newborn “NIPPON PAINT
CO., LTD.” will be merged with some domestic subsidiaries related to respective businesses, for the purposesof further strengthening the integrity of value chains in each business as well as attaining efficient operations
by streamlining overlapping functions within the Group.
Through these steps, the Group will ensure more optimized group management and enhanced independent
business operations as well as foster management personnel for the next generation.
New company(1) New automotive coatingsbusiness company

Former companies
NIPPON PAINT CO., LTD. (Automotive coatings business)
NIPPON BEE CHEMICAL CO., LTD.
DAIWA PAINT TRADING CO., LTD.

(2) New industrial coatingsbusiness company

NIPPON PAINT CO., LTD. (Industrial coatings business)
NIPPON FINE COATINGS, INC.
NIPPON PAINT INDUSTRIAL COATING CO., LTD.*(3) New trade-use paints businesscompany

NIPPON PAINT CO., LTD. (Trade-use paints business)(4) New surface treatment businesscompany

NIPPON PAINT CO., LTD. (Surface treatment business)

NIPPON PAINT HANBAI CO., LTD.
NIPPON PAINT INDUSTRIAL COATING CO., LTD.** NIPPON PAINT INDUSTRIAL COATING CO., LTD. will be merged separately with the industrial
coatings business and surface treatment business.
2. Outlines of companies involved in reorganization(1) NIPPON PAINT CO., LTD.
1) Trade nameNIPPON PAINT CO., LTD.

2) Location

Osaka City, Osaka3) Name and title of representative

Kenji Sakai, Representative Director and President

4) Business description

Manufacturing and sales of all types of paints (forautomobiles, constructions, structures, vessels, metalmaterials, electrical equipment, industrial machinery,roadways, households, etc.); and manufacturing and salesof surface treatment chemicals, electronic component
materials and chemical products5) Capital¥100 million17(2) NIPPON BEE CHEMICAL CO., LTD.
1) Trade nameNIPPON BEE CHEMICAL CO., LTD.

2) Location

Hirakata City, Osaka3) Name and title of representative

Tetsushi Tadoh, Representative Director and President

4) Business description

Manufacturing and sales of paints for plastics;
manufacturing and sales of chemical products; and all
operations contingent to or related to these5) Capital¥360 million(3) DAIWA PAINT TRADING CO., LTD.
1) Trade name

DAIWA PAINT TRADING CO., LTD.

2) Location

Nagoya City, Aichi

3) Name and title of representative

Takao Shinogi, Representative Director and President

4) Business description

Sales of automotive coatings, coating equipment anddevices, metal surface treatment chemicals, metal surface
treatment equipment, etc.

5) Capital¥90 million(4) NIPPON FINE COATINGS, INC.
1) Trade nameNIPPON FINE COATINGS, INC.

2) Location

Shinagawa-ku, Tokyo

3) Name and title of representative

Ryoji Ishihara, Representative Director and President

4) Business description

Manufacturing and sales of pre-coating paints for metal
plates5) Capital¥200 million(5) NIPPON PAINT INDUSTRIAL COATING CO., LTD.
1) Trade nameNIPPON PAINT INDUSTRIAL COATING CO., LTD.

2) Location

Shinagawa-ku, Tokyo

3) Name and title of representative

Hisao Taguchi, Representative Director and President

4) Business description

Sales of industrial-use coatings; contract, design andsupervision of coating equipment construction works5) Capital¥170 million(6) NIPPON PAINT HANBAI CO., LTD.
1) Trade nameNIPPON PAINT HANBAI CO., LTD.

2) Location

Shinagawa-ku, Tokyo

3) Name and title of representative

Tetsuya Toshimitsu, Representative Director and President

4) Business description

Manufacturing and sales of trade-use paints and related
products

5) Capital¥639 million18

3. Outlines of new companies(1) New automotive coatings business company
NIPPON PAINT AUTOMOTIVE CO., LTD. (tentative
1) Trade namename)2) Location

Hirakata City, Osaka3) Name and title of representative

Mitsuo Yamada, Representative Director and President (tobe appointed)

4) Business description

Manufacturing and sales of automotive coatings5) Capital¥360 million (to be provided)(2) New industrial coatings business company
1) Trade nameNIPPON PAINT INDUSTRY CO., LTD. (tentative name)2) Location

Shinagawa-ku, Tokyo

3) Name and title of representative

Hiroshi Miwa, Representative Director and President (to beappointed)

4) Business description

Manufacturing and sales of industrial-use coatings5) Capital¥170 million (to be provided)(3) New trade-use paints business company
1) Trade nameNIPPON PAINT CO., LTD.

2) Location

Shinagawa-ku, Tokyo

3) Name and title of representative

Shingo Aida, Representative Director and President (to beappointed)

4) Business description

Manufacturing and sales of trade-use paints5) Capital¥739 million (to be provided)(4) New surface treatment business company
NIPPON PAINT SURF CHEMICALS CO., LTD. (tentative
1) Trade namename)2) Location

Shinagawa-ku, Tokyo

3) Name and title of representative

Seiichiro Shirahata, Representative Director and President(to be appointed)

4) Business description

Manufacturing and sales of surface treatment chemicals

5) Capital¥100 million (to be provided)

4. Impact on business performance
The consolidated financial results of the Company will not be affected by this reorganization, which is to be
executed among the Company’s wholly-owned consolidated subsidiaries. (NIPPON FINE COATINGS, INC. isto become the Company’s wholly-owned subsidiary in accordance with an agreement signed on September 30.)19