Consolidated Financial Results
for the Six Months Ended June 30, 2022
[IFRS]
August 10, 2022
Company name: Nippon Paint Holdings Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 4612
URL: https://www.nipponpaint-holdings.com/en
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: August 10, 2022
Scheduled date of commencing dividend payments: September 7, 2022
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 Six Months Ended June 30, 2022 (January 1, 2022 to June 30, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)

Six months ended
June 30, 2022
June 30, 2021

Revenue
Million yen
622,049
481,787

Six months ended
June 30, 2022
June 30, 2021

Profit attributable toowners of parent
Million yen%
28,557(14.2)
33,274－
Basic earnings
per share

%
29.1
－

Operating profit
Million yen%
44,202(9.7)
48,961－

Profit before tax
Million yen%
41,998(13.2)
48,361－

ProfitMillion yen
28,60433,574%(14.8)－

Comprehensive income
Million yen
258,985
95,047%
172.5－

Diluted earnings
per share

Six months ended
Yen
Yen
June 30, 2022
12.16
12.16
June 30, 2021
14.82
14.81
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 22 of the accompanying material.
Note 3: The year-on-year percentage changes in figures for the second quarter of the fiscal year ended December 31, 2021 are notprovided because retrospective adjustment have been applied to the amounts for the above-mentioned discontinued operations
and due to a change in the accounting policy for configuration or customization costs in a cloud computing arrangements
implemented in the previous fiscal year.

(2) Consolidated Financial Position
Total assets
Million yen
2,538,712
1,955,083

As of June 30, 2022
As of December 31, 2021

Equity attributable toowners of parent

Total equity
Million yen
1,193,033
968,694

Million yen
1,186,019
959,518

Equity attributable toowners of parent tototal assets
%
46.7
49.1

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
5.00－
December 31, 2022
Fiscal year ending
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
1,320,000
32.2 105,000
19.8
100,000
15.7
72,0006.6
30.66
Note 1: Revision to the financial results forecast announced recently: Yes
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):
June 30, 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:
June 30, 2022: 22,190,512 shares
December 31, 2021: 22,286,657 shares
3) Average number of shares during the period:
Six months ended June 30, 2022: 2,348,268,890 shares
Six months ended June 30, 2021: 2,245,795,614 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 ............................................. 8(3) Condensed Quarterly Consolidated Statement of Changes in Equity .......................................... 10(4) Condensed Quarterly Consolidated Statement of Cash Flows ..................................................... 12(5) Notes to Condensed Quarterly Consolidated Financial Statements ............................................. 13(Notes on going concern assumption) ..................................................................................... 13(Configuration or customization costs in a cloud computing arrangement) .............................. 13(Financial reporting in hyperinflationary economies) .............................................................. 13(Changes in presentation) ....................................................................................................... 13(Segment information) ........................................................................................................... 14(Business combinations) ......................................................................................................... 17(Discontinued operations) ...................................................................................................... 22(Significant subsequent events) .............................................................................................. 22-1-

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, we
transferred shares of NPI, NPAE, and BNPA to INC on August 27, 2021. As a result, these businesses have been classified as
discontinued operations for the purpose of preparing the consolidated financial statements. Based on this accounting treatment,
revenue, operating profit, and profit before tax are reclassified and restated to the amounts for continuing operations excluding
discontinued operations. The percentages show changes from the same period of the previous year in the items for continuing
operations. For more information, see “2. Consolidated Financial Statements and Primary Notes (5) Notes to Condensed Quarterly
Consolidated Financial Statements (Discontinued Operations)”.
During the six months ended June 30, 2022, consolidated revenue of the Nippon Paint Group increased by 29.1% from thecorresponding period of the previous year (same hereafter) to ¥622,049 million. This is primarily due to the acquisition on January
20, 2022 of European paint manufacturer Cromology Holding SAS (Cromology) and the acquisition on May 31, 2022 of European
paint manufacturer DB JUB delniška družba pooblaščenka d.d. (JUB) by NPHD, as subsidiaries, and the depreciation of theJapanese yen, combined with the strong 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 9.7% to ¥44,202
million due mainly to raw material price increases in every region and recording of an additional provision for potential credit loss
in China. Consolidated profit before tax decreased by 13.2% to ¥41,998 million, and profit attributable to owners of parent
decreased by 14.2% to ¥28,557 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 six months
ended June 30, 2021 that have been restated to reflect the change in reportable segments.
Japan
Revenue from sales of automotive coatings decreased because the number of automobiles manufactured declined as a result of
semiconductor chip shortage and other factors. Industrial coatings revenue increased, driven by solid new housing starts and otherfavorable market conditions. Decorative paints revenue increased due to improved market conditions.
As a result, consolidated revenue increased by 1.0 ％ to ¥87,466 million. Consolidated operating profit decreased by 64.1% to¥2,533 million because of raw material price increases. Beginning with the first quarter, 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 appropriately reflect the operating results ofeach reportable segment.
NipseaRevenue from sales of automotive coatings increased due to a positive foreign exchange impact and other factors, despite adecline in the number of automobiles manufactured in China because of semiconductor chip shortage, disruptions of parts supply,
lockdowns caused by the pandemic, and other factors. Revenue from decorative paints was higher owing to the sustained paintdemand for repainting interiors of existing homes in China and aggressive selling price increases in major markets including China,
Malaysia, Indonesia, and Turkey.
As a result, consolidated revenue increased by 24.7% to ¥340,083 million. Consolidated operating profit decreased by 39.7%
to ¥22,382 million due primarily to increases in raw material prices.
DuluxGroup
Cromology’s earnings are consolidated on the Nippon Paint Group’s financial statements beginning with January 2022 and of
JUB beginning with June 2022. Revenue from sales of decorative coatings increased due to progress with selling price increases-2-

in Oceania and Europe. Revenue in the paint related business was robust due to progress with selling price increases of every
brand in Oceania, and strong sales of External Thermal Insulation Composite Systems (ETICS) in Europe.
As a result, consolidated revenue increased by 74.8% to ¥147,115 million, and consolidated operating profit increased by 46.2%
to ¥16,095 million.
Americas
Revenue from sales of automotive coatings increased, driven by higher production of automobiles in the United States, a coreregion, backed by vigorous demand, despite continuing semiconductor chip shortage and other factors. Decorative paints revenue
increased because of factors such as solid housing demand and favorable weather.
As a result, consolidated revenue increased by 23.3% to ¥47,383 million. Consolidated operating profit increased by 85.0% to¥5,065 million.

(2) Explanation of Financial Position
Total assets at the end of the second quarter of the current fiscal year increased by ¥583,629 million from the end of the previous
fiscal year to ¥2,538,712 million.
Current assets increased by ¥175,304 million mainly due to an increase in trade and other receivables. Non-current assets
increased by ¥408,324 million mainly because of an increase in goodwill resulting from the acquisition of Cromology.
Liabilities increased by ¥359,290 million yen to ¥1,345,679 million mainly due to an increase in bonds and borrowings.
Equity increased by ¥224,338 million to ¥1,193,033 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
46.7%.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information
The consolidated earnings forecast for the fiscal year ending December 31, 2022 released on February 14, 2022 has been revised.
For more information, please see “Notice of Revision of Earnings Forecast (IFRS)” released today.
Revision of the earnings forecast for the fiscal year ending December 31, 2022 (January 1, 2022 to December 31, 2022)
Revenue
Million yen

Operating profit

Profit before tax

Profit attributable toowners of parent

Basic earnings per
share

Million yen

Million yen

Million yen

Yen

Previous forecast (A)1,200,000

115,000

113,000

81,00034.49

Revised forecast (B)1,320,000

105,000

100,000

72,00030.66

120,000-10,000-13,000-9,000

10.0

-8.7

-11.5

-11.1

Amount of change(B-A)
Rate of change (%)-3-

2. Consolidated Financial Statements and Primary Notes(1) Consolidated Statements of Profit or Loss and Comprehensive Income
Consolidated Statement of Profit or Loss
Six Months Ended June 30(Million yen)
For the six months ended
June 30, 2021
Restated (Note)

For the six months ended
June 30, 2022

Continuing operations
Revenue
Cost of sales

481,787(293,395)

622,049(392,011)

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

188,391(141,337)
3,425(1,517)230,038(188,564)
4,398(1,669)Operating profit
Finance income
Finance costs
Share of profit (loss) of investments
accounted for using equity method
Loss on step acquisitions

48,961
3,102(2,870)44,202
2,760(5,775)770

810(1,601)

Profit before tax
Income taxes

48,361(14,103)－
41,998(13,393)

Profit from continuing operations

34,25828,604

Discontinued operations
Profit (loss) from discontinued operations

(684)

－

Profit33,57428,604

Profit attributable to
Owners of parent
Non-controlling interests

33,274300

28,55747

33,57428,60415.08(0.26)

12.16
－

Total

14.82

12.16

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

15.08(0.26)

12.16

Total

14.81

ProfitEarnings per share
Basic earnings (loss) per share (yen)Continuing operations
Discontinued operations

Note: Please refer to “(5) Notes to the Consolidated Financial Statements”.

-4-

－
12.16

Consolidated Statement of Profit or Loss
Second Quarter Ended June 30(Million yen)
Second quarter ended
June 30, 2021
Restated (Note)

Second quarter ended
June 30, 2022

Continuing operations
Revenue
Cost of sales

259,108(161,804)

336,953(215,151)

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

97,303(73,372)
1,037
(706)

121,802(103,464)
3,070
(603)

Operating profit
Finance income
Finance costs
Share of profit (loss) of investments
accounted for using equity method
Profit before tax
Income taxes
Profit from continuing operations

24,262842(1,176)20,804652(2,793)298

462

24,227(6,446)
17,781

19,125(5,060)14,065

Discontinued operations
Profit (loss) from discontinued operations

(642)

－

Profit17,13914,065

Profit attributable to
Owners of parent
Non-controlling interests

16,931
208

14,206(141)

17,13914,0657.45(0.24)

6.05

Total

7.21

6.05

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

7.45(0.24)

6.05

Total

7.21

6.05

ProfitEarnings per share
Basic earnings (loss) per share (yen)Continuing operations
Discontinued operations

Note: Please refer to “(5) Notes to the Consolidated Financial Statements”.

-5-

－

－

Condensed Quarterly Consolidated Statement of Comprehensive Income
Six Months Ended June 30(Million yen)
For the six months ended
June 30, 2021
Restated (Note)

For the six months ended
June 30, 2022

33,57428,6042,303(1,068)

(43)

(35)

2,260

(1,103)58,937

232,652

43

(831)

232

(335)

59,212

231,484

Total other comprehensive income

61,473

230,380

Comprehensive income

95,047

258,985

94,388257,670

659

1,314

95,047

258,985

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
Total 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”.

-6-Second quarter Ended June 30(Million yen)

ProfitSecond quarter ended
June 30, 2021
Restated (Note)
17,139Second quarter ended
June 30, 2022
14,065

Other 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

1,447

(1,837)

1

19

(1)

－

1,448

(1,817)(3,415)98,394

7

137

12

(853)

(3,395)97,679Total other comprehensive income(1,947)

95,861

Comprehensive income

15,192

109,927

14,968109,254224

672

15,192

109,927

Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income
Note: Please refer to “(5) Notes to the Consolidated Financial Statements”.

-7-

(2) Condensed Quarterly Consolidated Statement of Financial Position(Million yen)
As ofDecember 31, 2021

As ofJune 30, 2022

AssetsCurrent assets
Cash and cash equivalents

138,813

188,219

Inventories

132,798

183,174

Trade and other receivables

266,908355,234

Other financial assets

39,924

31,840

Other current assets

18,43017,234

596,876775,704

Assets held for sale

3,860

336

Total current assets

600,736

776,041

Property, plant and equipment

301,706

384,334

Goodwill

652,692

909,751

Other intangible assets

300,200

365,732

Investments accounted for using equity method

31,40634,545

Other financial assets

51,44854,907

Other non-current assets

11,873

5,531

Deferred tax assets

5,019

7,869

1,354,346

1,762,671

1,955,083

2,538,712

Subtotal

Non-current assets

Total non-current assets
Total assets-8-

(Million yen)
As ofDecember 31, 2021

As ofJune 30, 2022

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables

209,686

267,920

Bonds and borrowings

65,11577,845

Other financial liabilities

28,70136,642

Income taxes payable

11,105

11,735

Provisions

2,478

4,890

Other current liabilities

55,546

77,533

Total current liabilities

372,633

476,569

Bonds and borrowings

457,919

670,907

Other financial liabilities

56,28877,915Retirement benefit liability

18,57018,465

Non-current liabilities

Provisions
Other non-current liabilities

777

1,201

6,157

12,823

Deferred tax liabilities

74,04087,796

Total non-current liabilities

613,754869,110986,388

1,345,679

Share capital

671,432

671,432

Treasury shares(6,153)(6,127)Retained earnings

228,009

220,976

Other components of equity

66,230299,738

Total equity attributable to owners of parent

959,518

1,186,019

9,176

7,013

968,694

1,193,033

1,955,083

2,538,712

Total liabilities

EquityNon-controlling interests
Total equity
Total Liabilities and equity-9-(3) Condensed Quarterly Consolidated Statement of Changes in Equity
For the Six Months Ended June 30, 2021 (From January 1, 2021 to June 30, 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－－－33,274－33,274300

33,574

Other comprehensive income

－

－

－

－

61,114

61,114358

61,473－－－33,274

61,114

94,388659

95,047592,569

592,569－－－

1,185,139－

1,185,139

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

－

－

(5)

－

－

(5)

－

(5)

Disposal of treasury shares

－

335

70

－

－

405

－

405

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
Transfer from other componentsof equity to non-financial
assets and other items
Other

－

－

－

(7,380)－(7,380)(96)(7,476)－(912,321)－－(7,033)(919,354)(124,174)(1,043,529)－

259,715－(259,715)

－

－

－

－

－

－

－

－

－

－

830

830

－

－

－

622

(622)

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

16

16

Total transactions with owners

592,569(63,320)65(266,473)(7,655)

255,185(123,424)

131,761

Balance as of June 30, 2021

671,432－(6,202)

210,678

41,259917,168

8,642

925,810

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

Comprehensive income
Issuance of new shares- 10 -

For the Six Months Ended June 30, 2022 (From January 1, 2022 to June 30, 2022)(Million yen)

Share capital

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

Noncontrollinginterests

Total

Total equity

Balance as of January 1, 2022

671,432－(6,153)228,009

66,230959,518

9,176

968,694

Adjustments for hyperinflation

－

－

－

(20,543)－(20,543)－(20,543)

671,432－(6,153)

207,465

66,230938,974

9,176

948,151

Profit－－－28,557－28,55747

28,604

Other comprehensive income

－

－

－

－

229,113229,113

1,267

230,380－－－

28,557229,113257,670

1,314

258,985

Issuance of new shares

－

－

－

－

－

－

－

－

New share issuance expenses

－

－

－

－

－

－

－

－

Purchase of treasury shares

－

－

(0)

－

－

(0)

－

(0)

Disposal of treasury shares

－

70

26

－

(24)

73

－

73

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
Transfer from other componentsof equity to non-financial
assets and other items
Other

－

－

－

(11,741)－(11,741)(45)(11,787)－(3,845)－－675(3,169)(3,512)(6,682)

－

3,774

－

(3,774)

－

－

－

－

－

－

－

－

－

－

36

36

－

－

－

469

(469)

－

－

－

－

－

－

－

4,212

4,212

－

4,212

－

－

－

－

－

－

43

43

Total transactions with owners

－

－

26

(15,046)

4,395(10,625)(3,477)(14,103)

Balance as of March 31, 2022

671,432－(6,127)

220,976

299,738

1,186,019

7,013

1,193,033

Beginningbalancereflecting
adjustments for hyperinflation

Comprehensive income- 11 -

(4) Consolidated Statement of Cash Flows(Million yen)
For the six months ended
June 30, 2021
Restated (Note)

For the six months ended
June 30, 2022

48,361
16,801(1,528)1,601(1,762)
2,728

41,99821,094(24)－(1,696)
3,653

(769)

(810)

(16,887)(31,215)
12,312
293
3,718
19
33,671
1,136
1,125(2,726)(10,518)(15,292)(30,535)
1,628
12,304
3,153
582
36,056
1,126
1,784(3,562)(15,337)(2,038)－20,65020,067

11,335
20,161(14,029)563(1,428)(98,371(170)
10,994(19,267)
4,184(1,537(168,397)(16,999－(1,043)(4,769)
343
(389)

(928)
(2,157)
3,351
1,801

1,694

－

(102,933)(172,126)(106)
40,700(32,958)(4,120)(5,214)(7,379)(1,335)559
270,160(59,910)(6,198)－(11,741)(7)(10,011)

－

－
(16)

(6,680)
(74)

(92)

－

(20,534)

186,105

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 allowance for doubtful accounts
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
Purchase of shares in investments accounted for using
equity method
Payments for transfer of business
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- 12 -

(Million yen)
For the six months ended
June 30, 2021
Restated (Note)
Effect of exchange rate changes on cash and cash
equivalents
Adjustments for hyper inflation
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
Note: Please refer to “(5) Notes to the Consolidated Financial Statements”.

For the six months ended
June 30, 2022

3,309

14,494－(99,507)
232,134
132,626865
49,405
138,813
188,219(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 (related to IAS 38)”. The agenda decision clarified the accounting treatment of upfront costs incurredby a customer 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 six months ended June30, 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 six months ended June 30, 2021, selling, general and administrative expenses increased by ¥457
million and operating profit, profit before tax, profit from continuing operations, and profit decreased by ¥457 million each. In the
consolidated statement of cash flows for the six months ended June 30, 2021, profit before tax from continuing operations
decreased by ¥457 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 ¥0.20 each.
(Financial reporting in hyperinflationary economies)
Beginning with the six months ended June 30, 2022, we applied the hyperinflationary accounting standard IAS29 “Financial
Reporting in Hyperinflationary Economies” to consolidate our Turkish subsidiaries. The financial statements of the Turkish
subsidiaries were included in the consolidated statements after restating the units of measurement at the end of the reporting period
in order to reflect the impact of inflation in Turkey on financial statements. As required by IAS 21 (“The Effects of Changes in
Foreign Exchange Rates”), the Nippon Paint Group translates amounts using the exchange rate at the end of the quarterly period
when consolidating cash flows and comprehensive income of its Turkish subsidiaries. The application of this method to theConsolidated Statement of Profit or Loss for the six months ended June 30, 2022 caused revenue to increase by ¥3,029 million, andoperating profit to decline by ¥3,304 million, profit by ¥5,989 million, and profit attributable to owners of parent by ¥5,703 million.
(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 six months ended June 30, 2021 and the second quarter ended June30, 2021 have been partially reclassified for businesses classified as discontinued operations.

- 13 -

(Segment information)(1) Summary of reportable segments
Nippon Paint Group’s operations are classified into business segments for which separate financial information is available andare 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 coatingsbusiness.
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 six months
ended June 30, 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, beginning with the three months ended March 31, 2022, we changed our reportable segments to segments divided
by management unit or region with a manufacturing and sales structure as a base: Japan, Nipsea, DuluxGroup, and Americas. The
Japan segment includes the overseas marine coatings business. The segment information for the six months ended June 30, 2021
has been restated based on the new reportable segments.

(3) Performance by reportable segment
For the Six Months Ended June 30, 2021 (From January 1, 2021 to June 30, 2021)(Million yen)

- 14 -

Reportable segment
DuluxGroup Americas

Total

Adjustments(Note)

Condensed quarterly
consolidated financial
statements

Japan

NipseaRevenue from externalcustomers

86,558272,644

84,16938,414

481,787－

481,787

Intersegment revenue

7,536

1,911

149

31

9,629

(9,629)－Total

94,095274,555

84,31938,445

491,416(9,629)481,787

7,054

37,133

11,0092,738

57,936(8,974)

48,961

Revenue

Segment profit (loss)
Financial income

3,102

Financial costs(2,870)Share of profit ofinvestments accounted forusing equity method

770

Loss on step acquisitions(1,601)

Profit before tax

48,361

Note: Adjustments for segment profit of ¥-8,974 million include Headquarters expenses of ¥-12,472 million that do not belong to
any reportable segment and intersegment eliminations of ¥3,497 million.
For the Six Months Ended June 30, 2022 (From January 1, 2022 to June 30, 2022)(Million yen)
Reportable segment
DuluxGroup Americas

Total

Adjustments(Note)

Condensed quarterly
consolidated financial
statements

Japan

NipseaRevenue from externalcustomers

87,466340,083

147,115

47,383622,049－

622,049

Intersegment revenue

8,524

2,133

280

41

10,979(10,979)－

Total

95,990342,217

147,395

47,425633,029(10,979)

622,049

Segment profit

2,533

22,382

16,095

5,065

46,076(1,873)44,202

Revenue

Financial income

2,760

Financial costs(5,775)

Share of profit ofinvestments accounted forusing equity method

810

Loss on step acquisitions－

Profit before tax

41,998

Note: Adjustments for segment profit of ¥-1,873 million includes Headquarters expenses of ¥-1,679 million that do not belong to
any reportable segment and intersegment eliminations of ¥-193 million yen.

- 15 -

(4) Information on products and services
For the Six Months Ended June 30, 2021 (From January 1, 2021 to June 30, 2021)(Million yen)Japan

NipseaDuluxGroup

Americas

Total

Paint and coating business
Automotive coatings

18,73537,054－

12,262

68,053

Decorative paints

21,814

197,668

43,10725,523

288,114

Industrial coatings

18,602

19,341

3,476－

41,420Fine chemicals

4,661

3,256

－

627

8,545

Other paints

22,744

5,429

－

－

28,17386,558262,751

46,58338,414434,308－

9,893

37,585－47,47986,558272,644

84,16938,414

481,787

Paint related business
Total

For the Six Months Ended June 30, 2022 (From January 1, 2022 to June 30, 2022)(Million yen)Japan

NipseaDuluxGroup

Americas

Total

Paint and coating business
Automotive coatings

16,01341,500－14,57972,092

Decorative paints

23,165

252,028

95,974

32,122403,291

Industrial coatings

19,322

20,8494,214－

44,386

Fine chemicals

4,238

4,126

－

681

9,046

Other paints

24,727

6,345

－

－

31,072

87,466

324,850

100,188

47,383559,889－

15,23346,926－

62,16087,466340,083

147,115

47,383622,049

Paint related businessTotal- 16 -

(Business combinations)
For the six months ended June 30, 2021 (From January 1, 2021 to June 30, 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- 17 -

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.
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

- 18 -

（Million yen）
For the six months ended
March 31, 2021
(From January 1, 2021 toJune 30, 2021)
19,850

Revenue
Profit4,265(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 ¥259,715 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.

- 19 -

For the six months ended June 30, 2022 (From January 1, 2022 to June 30, 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- 20 -

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 June 30, 2022. Accounting treatment at the timeof 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(Cash and other assets)

Basis adjustments
Fair value of assets acquired and liabilities
assumed, net
Goodwill (Note)A

149,556

B

4,212

C

19,596

A+B-C

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: ¥1,141 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 six months ended
June 30, 2022
(From January 1, 2022 toJune 30, 2022)
50,772

Revenue
Profit3,301(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- 21 -(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 six months ended June 30, 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 six months ended
June 30, 2021
(From January 1, 2021 toJune 30, 2021)

For the six months ended
June 30, 2022
(From January 1, 2022 toJune 30, 2022)

Profit and loss from discontinued operations
Income (Note)

16,073－

Expenses (Note)(16,697)－

Profit (loss) before tax from discontinued operations

(624)

－

Income taxes

(60)

－

Profit (loss) from discontinued operations

(684)

－

(2) Cash flows from discontinued operations(Million yen)
For the six months ended
June 30, 2021
(From January 1, 2021 toJune 30, 2021)

For the six months ended
June 30, 2022
(From January 1, 2022 toJune 30, 2022)

Cash flows from discontinued operations
Cash flows from operating activities(2,038)－Cash flows from investing activities

1,694

－

Cash flows from financing activities

(92)

－

(435)

－

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

- 22 -