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 Three Months Ended March 31, 2017
[Japanese GAAP]May 12, 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: May 15, 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 Three Months Ended March 31, 2017 (January 1, 2017 to March
31, 2017)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Three months ended
M illion yen%
M illion yen%
M illion yen%
M illion yen%
March 31, 2017
135,780
16,074
15,6655,856
June 30, 2016
121,4101.0
17,00731.0
14,547
(0.6)
6,142
31.4
Note: Comprehensive income: Three months ended March 31, 2017: ¥(2,397) million [ - %]Three months ended June 30, 2016: ¥(13,745) million [ - %]Basic earnings
per share

Three months ended
March 31, 2017
June 30, 2016

Diluted earnings
per share

Yen

Yen

18.26
19.15

18.26
19.15

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, because the consolidation period
for the three months ended March 31, 2017 (from January 1, 2017 to March 31, 2017) differs with the previous
consolidation period for the three months ended June 30, 2016 (from April 1, 2016 to June 30, 2016) , changes
from the previous corresponding period have not been provided.
Additionally, for the three months ended June 30, 2016 for the Company and subsidiaries with fiscal year
ended March 31, the consolidation period was the three months from April 1, 2016 to June 30, 2016 and forsubsidiaries with fiscal year ended December 31, the consolidation period was the three months from January 1,
2016 to March 31, 2016.
(2) Consolidated Financial Position
Total assets
M illion yen

Net assets

Equity ratio

M illion yen%

As of March 31, 2017856,419576,222
As of December 31, 2016
827,996585,757
Reference: Equity: As of March 31, 2017: ¥463,087 million
As of December 31, 2016: ¥473,337 million

54.1
57.2

2. Dividends
1stquarter-end

2ndquarter-end

Year-end

Total

Yen

Yen

Yen

Yen

Yen

-

20.00

-

20.00

40.00

20.00

-

22.00

42.00

Fiscal year ended December 31, 2016
Fiscal year ending December 31, 2017
Fiscal year ending December 31, 2017
(Forecast)
Note:

Annual dividends
3rdquarter-end

Revision to the forecast for dividends announced most recently: No

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
M illion yen%

Operating income

Ordinary income

Profit attributableto owners ofparentM illion yen

M illion yen

M illion yen

%

%

%

Basic earnings
per share
YenFirst half
280,000
37,50039,00015,50048.33
Full year
577,000
81,00084,00037,000115.37
Note: Revision to the financial results forecast announced most recently: Yes
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):
March 31, 2017: 325,402,443 shares
December 31, 2016: 325,402,443 shares2) Total number of treasury shares at the end of the period:
March 31, 2017: 4,699,013 shares
December 31, 2016: 4,698,228 shares
3) Average number of shares during the period:
Three months ended March 31, 2017: 320,703,804 shares
Three months ended June 30, 2016: 320,705,807 shares*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 three months ended March 31, 2017 is the three months from January
to March 2017.
Additionally, 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 threemonths from January to March 2016 as the “corresponding period of the previous year.”During the three months ended March 31, 2017, consolidated net sales of NIPPON PAINT HOLDINGS
CO., LTD. (the “Company”) and its group companies (collectively, the “Group”) increas ed by 9.6% from thecorresponding period of the previous year (the “previous year”), to ¥135,780 million. Consolidated operating
income decreased by 8.1% from the previous year, to ¥16,074 million partly due to recording expenses related
to the acquisition of stock in DUNN-EDWARDS CORPORATION during the three months ended March 31,
2017, and consolidated ordinary income decreased by 2.7% from the previous year, to ¥15,665 million. Profit
attributable to owners of parent increased by 20.6% from the previous year, to ¥5,856 million. This is due to a
tax burden during the previous year for dividends received from overseas group companies.
(M illion yen)

For the three months ended
March 31, 2016 (Reference)

For the three months ended
March 31, 2017

Net sales

123,927

135,780

9.6

Operating income

17,49916,074(8.1)

Ordinary income

16,092

15,665(2.7)

Profit attributable to owners of parent

4,855

5,856

20.6

Change(%)

Note: For comparison with the three months ended March 31, 2017, figures for the previous year are
unaudited reference figures for the period between January and March 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 as
an increase in the number of automobiles manufactured and favorable shipments of premium design and highvalue-added coatings. As for industrial coatings, as the residential construction materials market performed
strongly owing to factors such as an increase in new housing starts, net sales were higher than the previous year.
As for trade-use paints, net sales decreased from the previous year due to factors such as the effects of a decline
in personal consumption in the retail sector. Regarding other coatings, net sales were lower than the previous
year due to a pullback following a large-scale project in the facilities sector that was received during theprevious year.
As a result of these factors, consolidated net sales for the Japan segment decreased by 5.5% from theprevious year, to ¥41,291 million. Consolidated operating income decreased by 53.3% from the previous year,to ¥9,093 million. This is attributable to the dividend income received from overseas group companies of¥11,683 million during the previous year (compared to ¥1,825 million for the period under review). All of this2

dividend income is eliminated as an internal transaction under “Inter-segment transaction eliminations andother adjustments.”
Asia
In this region, net sales for automotive coatings w ere higher than the previous year as a result of anincrease in the number of automobiles manufactured in China, a core region. As for trade-use paints, net sales
were significantly higher than in the previous year, owing to factors such as making a Chinese coatings
manufacturer a subsidiary in January 2017, and the implementation of sales promotion activities ahead ofprice revision. In industrial coatings, net sales were higher than the previous year owing to strong net sales incoatings for construction machinery and construction materials.
In the Asia region excluding China, there were effects from a decline in the number of automobiles
manufactured in Thailand. In India, in line with an expans ion in the partnership with BERGER PAINTSINDIA LIMITED, net sales increased for automotive coatings. In trade-use paints, net sales were strong,particularly in Vietnam and Sri Lanka.
As a result of these factors, consolidated net sales for the Asia segment increased by 15.7% from theprevious year, to ¥78,870 million. Consolidated operating income increased by 7.0% from the previous year, to¥8,516 million.
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.
In addition to the above, as business results for DUNN-EDWARDS CORPORATION, consolidated in
March 2017, are included from the three months ended March 31, 2017, consolidated net sales for thisgeographic segment were ¥12,052 million, an increase of 38.2% from the previous year. Consolidated
operating income was ¥70 million, a decrease of 95.4% from the previous year, owing to factors such as therecording of expenses related to the acquisition of stock in DUNN-EDWARDS CORPORATION.
Furthermore, on an existing business basis, both net sales and income decreased.
Other
Consolidated net sales for this geographic segment were ¥3,566 million, an increase of 6.7% from theprevious year due to efforts for business expansion, and consolidated operating income was ¥220 million,
compared to an operating loss of ¥21 million during the previous year.

(2) Explanation of Financial Position
Total assets at the end of the first quarter of the fiscal year under review increased by ¥28.42 billion fromthe end of the previous fiscal year to ¥856,419 million. Current assets decreased by ¥42.32 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 ¥70.75 billion from the end of theprevious fiscal year, primarily caused by factors such as an increase in goodwill in line with the acquisition of
DUNN-EDWARDS CORPORATION.
Liabilities increased by ¥37.96 billion from the end of the previous year to ¥280,197 million. The increase
was mainly attributable to an increase in loans payable in line with the acquisition of DUNN-EDWARDSCORPORATION.
Net assets decreased by ¥9.53 billion from the end of the previous fiscal year to ¥576,222 million. Thiswas mainly attributable to decreases in valuation difference on available-for-sale securities and foreign
currency translation adjustment.
As a result, equity ratio fell from 57.2% at the end of the previous fiscal year to 54.1%.

3

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information
As DUNN-EDWARDS CORPORATION was made a wholly-owned subsidiary on March 1, 2017,
net sales will be revised. However, as the allocation of the acquisition cost following the acquisition of
DUNN-EDWARDS CORPORATION has yet to be determined and requires further inspection, operating
income, ordinary income, profit attributable to owners of parent, and basic earnings per share will remain
at the figures announced on February 24.
Consolidated Financial Results Forecast for the Six Months Ending June 30, 2017 (January 1, 2017 to June30, 2017)(Million yen)
Net sales

OperatingincomeOrdinary income Profit attributableto owners of parent

Basic earnings
per share (yen)Previous forecast (A)265,000

37,50039,00015,50048.33

Revised forecast (B)280,000

37,50039,00015,50048.33

Difference (B-A)

15,000－－－Rate of change (%)

5.7

－

－

－

Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2017 (January 1, 2017 to
December 31, 2017)(Million yen)
Net sales

OperatingincomeOrdinary income Profit attributableto owners of parent

Basic earnings
per share (yen)Previous forecast (A)540,000

81,00084,00037,000115.37

Revised forecast (B)577,000

81,00084,00037,000115.37

Difference (B-A)

37,000－－－Rate of change (%)

6.9

－

－

－

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 March 31, 2017

136,778
135,139
13,71350,78755,594
7,553
17,052(3,698)412,92082,807
149,183
11,76140,44162,8778,230
19,424(4,131)
370,595

43,692
63,977
107,669

56,49469,786126,281

166,362
44,27947,055
257,696

221,544
42,676
46,520310,740

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

43,739
1,071
4,087
(95)
48,802
485,824
856,419

(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
Bonds payable
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 March 31, 2017

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

75,581
17,49750,883
5,326
59,692208,982－
3,457
23,270142294
19,124
8,016
54,306242,238

2,391
18,606
22,913138
238
18,4098,517
71,214
280,197

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

78,86263,434
360,516(6,447)496,365

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

8,391(37,544)(4,125)(33,278)99
113,036576,222856,419

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Three Months Ended March 31, 2017
(Million yen)
For the three months ended
June 30, 2016

For the three months ended
March 31, 2017

121,41069,44351,966
34,95917,007

135,780
79,81855,961
39,887
16,074

195
399
304
162
700
1,762

295
95
131
370
610
1,503

96
3,941
185
4,223
14,547

228
1,539
144
1,912
15,665

11
11

11
11

57
15
73
14,485
4,296
10,188
4,046
6,142

80
－
80
15,596
5,298
10,2984,442
5,856

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
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

7

Quarterly Consolidated Statements of Comprehensive Income
Three Months Ended March 31, 2017
(Million yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

For the three months ended
June 30, 2016
10,188For the three months ended
March 31, 201710,298(2,451)
3(21,323)297(1,674)－(12,298)
1,099

(460)

176

(23,934)(13,745)(12,696)(2,397)(12,938)(3,816)

(807)

1,418

8

(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 first quarter of the fiscal year under review.

(Segment information, etc.)[Segment information]
I. For the three months ended June 30, 2016

1. Information on net sales and income (loss) by reportable segment(Million yen)
Reportable segment
Japan

Asia

41,169

Other(Note)

Total

Americas

Subtotal

68,175

8,721

118,067

3,343

121,410

5,201

1,017

87

6,306

248

6,555

Total

46,371

69,193

8,809

124,374

3,591

127,966

Segment income (loss)

7,762

7,920

1,523

17,206(21)

17,184

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

17,206

Segment loss from “Other”(21)

Inter-segment transaction eliminations and other(177)

adjustments
Operating income recorded in the quarterly

17,007

consolidated statement of income

Note: “Inter-segment transaction eliminations and other adjustments” for the three months ended June 30,
2016 includes inter-segment dividend income.

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

Change from the previous

Amountyear (%)

Paints116,928

0.1

Automotive

34,393

10.5

Trade-use

53,880(2.5)

Industrial

16,466(1.6)

Other paints

12,188(11.2)

Fine chemicals

4,481

35.6

121,4101.0

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

10II. For the three months ended March 31, 2017

1. Information on net sales and income (loss) by reportable segment(Million yen)
Reportable segment
Japan

Asia

41,291

Other

Total

(Note)

Americas

Subtotal

78,87012,052132,213

3,566

135,780

7,303

755

46

8,105

233

8,338

Total

48,594

79,625

12,098140,318

3,800

144,119

Segment income

9,093

8,516

70

17,680220

17,900Net 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.

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

17,680

Segment income from “Other”

220

Inter-segment transaction eliminations and other(1,826)

adjustments
Operating income recorded in the quarterly

16,074

consolidated statement of income

Note: “Inter-segment transaction eliminations and other adjustments” for the three months ended March 31,2017 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¥76,668 million compared to December 31, 2016 due to the inclusion of DUNN-EDWARDS CORPORATION
in the scope of consolidation.

11

4. Information regarding impairment loss on non-current assets or goodwill, etc. by reportable segment(Significant changes in amounts of goodwill)
During the three months ended March 31, 2017, ¥56,694 million of goodwill occurred in the “Americas”
segment due to the inclusion of DUNN-EDWARDS CORPORATION in the scope of consolidation.
Additionally, the amount of goodwill due to this event is a provisional calculation, as the allocation of theacquisition cost has not been completed as of March 31, 2017.

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

Change from the previous

Amountyear (%)

Paints131,215－

Automotive

36,935－Trade-use

64,550－Industrial

17,548－Other paints

12,180－Fine chemicals

4,564

－

135,780－

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 three months ended March 31, 2017 differs, and change
from the previous year is not provided.

12