NOTICE: For the convenience of capital market participants, NIPPON PAINT HOLDINGS CO., LTD. makes efforts
to provide English translations of the information disclosed in Japanese, provided that the original Japanese version
prevails over its English translation version in the case of any discrepancy found between the original and translation.

Consolidated Financial Results
for the Nine Months Ended September 30, 2017
[Japanese GAAP]
November 14, 2017
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, 2017
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, 2017 (January 1, 2017 to
September 30, 2017)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Nine months ended
Million yen%
Million yen%
Million yen%
Million yen%
September 30, 2017452,772
56,46758,731
25,236
December 31, 2016
Note: Comprehensive income: Nine months ended September 30, 2017: ¥41,376 million [ - %]Nine months ended December 31, 2016: ¥- million [ - %]Basic earnings
per share

Nine months ended
September 30, 2017
December 31, 2016

Diluted earnings
per share

Yen

Yen

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, receiving approval of Partial Amendments of the Articles of Incorporation at the 191st
Annual General Meeting of Shareholders held on June 28, 2016. Accordingly, the consolidated financial
statements for the nine months ended December 31, 2016 was not prepared, and therefore changes from theprevious corresponding period for the nine months ended September 30, 2017 and the consolidated operating
results for the nine months ended December 31, 2016 have not been provided.
(2) Consolidated Financial Position
Total assets
Million yen

Net assets

Equity ratio

Million yen%

As of September 30, 2017
912,464
603,439
As of December 31, 2016
827,996585,757
Reference: Equity: As of September 30, 2017: ¥486,058 million
As of December 31, 2016: ¥473,337 million

53.3
57.2

2. Dividends
1stquarter-end

2ndquarter-end
Yen

Annual dividends
3rdquarter-end

Yen

Fiscal year ended December 31, 2016
20.00
Fiscal year ending December 31, 2017
20.00
Fiscal year ending December 31, 2017
(Forecast)
Note: Revision to the forecast for dividends announced most recently: No

Year-end

Total

Yen

Yen

Yen

-

20.00

40.00

22.00

42.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2017 (January 1, 2017 to
December 31, 2017)(% indicates changes from the previous corresponding period.)
Net sales
Million yen%

Operating income

Ordinary income

Profit attributableto owners ofparentMillion yen

Million yen

Million yen%%

Full year
605,000
75,00078,000Note: Revision to the financial results forecast announced most recently: Yes

34,000

Basic earnings
per share

%

-

Yen

106.02

Due to a change in the fiscal year, the previous consolidated fiscal year was the nine months starting on April 1,2016 and ending on December 31, 2016.
As a result, changes from the previous corresponding period have not been provided.

* 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, 2017: 325,402,443 shares
December 31, 2016: 325,402,443 shares2) Total number of treasury shares at the end of the period:
September 30, 2017: 4,700,178 shares
December 31, 2016: 4,698,228 shares
3) Average number of shares during the period:
Nine months ended September 30, 2017: 320,703,181 shares
Nine months ended December 31, 2016: - shares
Note: 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 the average number of shares during the nine months ended
December 31, 2016 has not been provided.
*These consolidated financial results are outside the scope of audit.
*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
figures depending on various factors. For the assumptions underlying the forecasts and precautions when using
the forecasts, 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.) ..................................................................................................................... 9

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, 2017 is the nine months fromJanuary to September 2017.
Additionally, NIPPON PAINT HOLDINGS CO., LTD. (the “Company”) has changed its fiscal year-end
from March 31 to December 31 from the fiscal year ended December 31, 2016, receiving approval of Partial
Amendments of the Articles of Incorporation at the 191st Annual General Meeting of Shareholders held on
June 28, 2016.
As a result, comparisons in each segment are compared with reference figures calculated with the ninemonths from January to September 2016 as the “corresponding period of the previous year.”During the nine months ended September 30, 2017, consolidated net sales of the Company and its groupcompanies (collectively, the “Group”) increased by 17.6% from the corresponding period of the previous year(the “previous year”), to ¥452,772 million. Consolidated operating income decreased by 4.8% from theprevious year, to ¥56,467 million partly due to recording expenses related to the acquisition of stock in DUNNEDWARDS CORPORATION during the three months ended March 31, 2017, in addition to the effects of anincrease in raw material prices, and consolidated ordinary income increased by 4.1% from the previous year, to¥58,731 million. Profit attributable to owners of parent increased by 6.7% from the previous year, to ¥25,236
million.
(Million yen)

For the nine months ended
September 30, 2016
(Reference)

For the nine months ended
September 30, 2017

Net sales

384,979

452,772

17.6

Operating income

59,31856,467(4.8)

Ordinary income

56,44258,731

4.1

Profit attributable to owners of parent

23,65625,236

6.7

Change(%)

Note: For comparison with the nine months ended September 30, 2017, figures for the previous year are
unaudited reference figures for the period between January and September 2016.
Results by business segment are as follows.
Japan
In this region, net sales of automotive coatings were higher than the previous year due to factors such asfavorable shipments of premium design and high value-added coatings and efforts to expand sales of coatings
for automotive parts. As for industrial coatings, due to favorable shipments of coatings for construction
machinery and farming machinery and coatings for construction materials, net sales were higher than theprevious year. As for trade-use paints, net sales decreased from the previous year due to factors such as sluggish
market conditions in the retail sector. Regarding other coatings, net sales were significantly higher than theprevious year due to efforts to expand the product lineup and expand market share of marine coatings.
As a result of these factors, consolidated net sales for the Japan segment increased by 2.3% from theprevious year, to ¥130,828 million. Consolidated operating income decreased by 1.2% from the previous year,to ¥35,273 million. ¥12,543 million of dividend income from overseas group companies (¥12,117 million in theprevious year) is included in consolidated operating income. All of this dividend income is eliminated as aninternal transaction under “Inter-segment transaction eliminations and other adjustments.”2

Asia
In China, a core region, net sales for automotive coatings were higher than the previous year due to factors
such as an increase in the number of automobiles manufactured in addition to advancing the expansion of sales
to Japanese and Chinese manufacturers. As for trade-use paints, net sales were significantly higher than in theprevious year, owing to factors such as making a Chinese wood coatings manufacturer a subsidiary in January
2017, implementation of sales promotion campaigns, and focusing on expansion of recoating services. In
industrial coatings, net sales were significantly higher than the previous year owing primarily to strong
shipments of coatings for construction machinery and construction materials.
In the Asia region excluding China, in India, in line with an expansion in the partnership with BERGERPAINTS INDIA LIMITED, net sales increased for automotive coatings. In trade-use paints, net sales werestrong, particularly in Singapore and Vietnam. Additionally, in marine coatings, net sales grew, primarily inSouth Korea and China.
As a result of these factors, consolidated net sales for the Asia segment increased by 17.1% from theprevious year, to ¥261,327 million. Consolidated operating income decreased by 2.8% from the previous year,to ¥30,577 million due to the effects of an increase in raw material prices.
Americas
In this region, net sales for automotive coatings decreased from the previous year as the number of
automobiles manufactured declined in the United States, a core region. Partly due to the effects of an increasein raw material prices, both net sales and income decreased on an existing business basis.
Furthermore, as DUNN-EDWARDS CORPORATION was consolidated in March 2017, consolidated net
sales for this geographic segment were ¥50,221 million, an increase of 106.3% from the previous year.
Consolidated operating income was ¥2,766 million, a decrease of 35.7% from the previous year, owing tofactors such as the recording of expenses related to the acquisition of stock for the new consolidation during thethree months ended March 31, 2017.
Other
In this geographic segment, regarding automotive coatings, shipments to Japanese manufacturers werestrong. Furthermore, consolidated net sales for this geographic segment were ¥10,394 million, an increase of
8.2% from the previous year due to efforts for expansion of business toward European manufacturers, andconsolidated operating income was ¥322 million, compared to an operating loss of ¥152 million during theprevious year.

(2) Explanation of Financial Position
Total assets at the end of the third quarter of the fiscal year under review increased by ¥84.47 billion fromthe end of the previous fiscal year to ¥912,464 million. Current assets decreased by ¥11.98 billion from the endof the previous fiscal year, mainly due to an increase in accounts receivable – trade and inventories, offset by adecrease in cash and deposits and securities. Non-current assets increased by ¥96.45 billion from the end of theprevious fiscal year, primarily caused by factors such as increases in goodwill and non-current assets in linewith the acquisition of DUNN-EDWARDS CORPORATION.
Liabilities increased by ¥66.79 billion from the end of the previous year to ¥309,024 million. The increase
was mainly attributable to an increase in loans payable and the recording of deferred tax liabilities in line withthe acquisition of DUNN-EDWARDS CORPORATION.
Net assets increased by ¥17.68 billion from the end of the previous fiscal year to ¥603,439 million. Thiswas mainly attributable to an increase in retained earnings due to the recording of profit attributable to ownersof parent and an increase in non-controlling interests.
As a result, equity ratio fell from 57.2% at the end of the previous fiscal year to 53.3%.

3

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information
In our mainstay China market, the Company made efforts to expand market share by focusing on sales
promotion activities to acquire a commanding market position although competition intensified under a harshenvironment. As a result, net sales have grown steadily, and results are projected to exceed forecasts, owing inpart to foreign exchange effects. Meanwhile, operating income is projected to fall below forecasts due to therise in raw material prices since the beginning of the year and their trends exceeding projection in the second
half onwards under tighter environmental regulations in China, as well as factors such as increases in various
costs to comply with such reinforced regulations.
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, 2017
(January 1, 2017 to December 31, 2017)
Net sales

Operating income Ordinary income

Profit attributable
Basic earnings per
to owners of
shareparentMillion yen

Million yen

Million yen

Million yen

Yen

Previously announced forecast (A)577,000

81,00084,00037,000115.37

Currently revised forecast (B)605,000

75,00078,00034,000106.02

Amount of change (B-A)

28,000(6,000)(6,000)(3,000)

4.9

(7.4)

(7.1)

(8.1)

Change (%)

4

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of December 31, 2016
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims - operating
Securities
Inventories
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Trademark right
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

5

As of September 30, 2017

136,778
135,139
13,71350,78755,594
7,553
17,052(3,698)412,920

97,807
163,959
15,081
36,94465,696
6,446
20,000(4,994)400,941

43,692
63,977
107,669

61,91879,131141,050

166,362
44,27947,055
257,696

196,155
61,57053,000310,726

45,418
1,210
3,250
(170)
49,709415,076
827,996

52,904
1,169
5,756
(84)
59,745
511,522
912,464

(Million yen)
As of December 31, 2016
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Income taxes payable
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, 2017

70,732
21,51230,495
7,866
57,325
187,932

86,834
21,60925,906
2,673
77,398214,422

3,457
23,270142294
19,124
8,016
54,306242,238

31,71837,561
190
244
17,771
7,115
94,602309,024

78,86263,451
361,074(6,444)496,944

78,86263,434373,483(6,452)509,328

10,120(28,512)(5,214)(23,606)85
112,334
585,757
827,996

10,317(30,044)(3,542)(23,269)
125
117,255
603,439
912,464(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Nine Months Ended September 30, 2017
(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
Gain on investment of securities
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Other
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

For the nine months ended
September 30, 2017452,772
268,090
184,682
128,21456,467
857
583
847
1,120
1,471
4,879
838
1,052
723
2,615
58,731
35
4
40
505
28
533
58,238
17,69040,547
15,31025,236

7

Quarterly Consolidated Statements of Comprehensive Income
Nine Months Ended September 30, 2017
(Million yen)

ProfitOther comprehensive income
Valuation 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-controllinginterests

For the nine months ended
September 30, 2017
40,547249(1,246)
1,694
131
828
41,37625,57915,7968

(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, whichis reasonably estimated after the application of tax effect accounting to profit before income taxes for the
consolidated fiscal year including the third quarter of the fiscal year under review.

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

Other

Total

Japan

Asia

Americas

Subtotal(Note)

130,828

261,327

50,221

442,378

10,394

452,772

28,3333,870

11932,322655

32,978

Total

159,162

265,197

50,340474,701

11,049485,750

Segment income

35,27330,577

2,766

68,618322

68,941

Net sales
Net sales to outside
customers
Inter-segment net sales ortransfers

Note: “Other” represents business segments that are not included in the reportable segments, and contains
business activities by overseas subsidiaries in Europe, etc.

9

2. Difference between total reportable segment income (loss) and the amount recorded in the quarterly
consolidated statements of income, and major details of said difference (matters related to adjustments ofdifferences)(Million yen)
IncomeAmountTotal reportable segment income

68,618Segment income from “Other”

322

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

adjustments
Operating income recorded in the quarterly

56,467

consolidated statement of income

Note: “Inter-segment transaction eliminations and other adjustments” for the nine months ended September 30,
2017 includes inter-segment dividend income.

3. Information on assets by reportable segment(Significant increase in assets due to acquisition of subsidiary)
During the three months ended March 31, 2017, segment assets in the “Americas” segment increased by¥89,746 million compared to December 31, 2016 due to the inclusion of DUNN-EDWARDS CORPORATION
in the scope of consolidation.

4. Information on products and services(Million yen)Nets sales to outside customers

Change from the previous

Amountyear (%)

Paints438,687―

Automotive

109,219―

Trade-use

233,076―

Industrial

55,228―Other paints

41,163―

Fine chemicals

14,084―

452,772―

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

2. During the previous fiscal year, the fiscal year-end was changed from March 31 to December 31. As
a result, the period for comparison for the nine months ended September 30, 2017 differs, andchange from the previous year is not provided.

10